Document:

<PAGE>

                                                                    Exhibit 10.9

                      Standard Form of Agreements Between
                           Owner and Design/Builder

                     AIA Document A191 - Electronic Format

________________________________________________________________________________

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES: CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

Copyright 1985, (C) 1996 The American Institute of Architects, 1735 New York
Avenue, NW, Washington, DC 20006-5292. Reproduction of the material herein or
substantial quotation of its provisions without the written permission of the
AIA violates the copyright laws of the United States and will subject the
violator to legal prosecution.

________________________________________________________________________________

                                 1996 EDITION

                               TABLE OF ARTICLES

                               PART 1 AGREEMENT

<TABLE>
<CAPTION>
<S>                                        <C>
1.  Design/Builder                         6.  Dispute Resolution - Mediation
                                                and Arbitration
2.  Owner                                  7.  Miscellaneous Provisions
3.  Ownership and Use of Documents and     8.  Termination of the Agreement
    Electronic data                        9.  Basis of Compensation
4.  Time                                   10. Other Conditions and Services
5.  Payments

                               PART 2 AGREEMENT

1.  General Provisions                     8.  Changes in the Work
2.  Owner                                  9.  Correction of Work
3.  Design/Builder                         10. Dispute Resolution - Mediation
                                                and Arbitration
4.  Time                                   11. Miscellaneous Provisions
5.  Payments                               12. Termination of the Agreement
6.  Protection of Persons and Property     13. Basis of Compensation
7.  Insurance and Bonds                    14. Other Conditions and Services
</TABLE>
<PAGE>

                      Standard Form of Agreements Between
                           Owner and Design/Builder

                     AIA Document A191 - Electronic Format

This document comprises two separate Agreements: Part 1 Agreement and Part 2
Agreement. Before executing the Part 1 Agreement. the parties should reach
substantial agreement on the Part 2 Agreement. To the extent referenced in these
Agreements, subordinate parallel agreements to A191 consist of AIA Document
A491, Standard Form of Agreements Between Design/Builder and Contractor. and AIA
Document B901, Standard Form of Agreements Between Design/Builder and Architect.

                               PART 1 AGREEMENT

                                 1996 EDITION

________________________________________________________________________________
AGREEMENT

made as of the 10th day of March in the year of Two Thousand (In words, indicate
day, month and year.)

BETWEEN the Owner:
(Name and address)
IPG Photonics Corporation PO Box 519, 660 Main Street Sturbridge, MA 01566

and the Design/Builder:
(Name and address)
Aho Construction Inc. Appleton Business Center New Ipswich, NH 03071

For the following Project:
(Include Project name, location and a summary description.)
Three Story Office and Technology Building, Building #1 & Building #2
20 Old Webster Road, Oxford, MA

The architectural services described in Article 1 will be provided by the
following person or entity who is lawfully licensed to practice architecture:
(Name and address)    (Registration Number)    (Relationship to Design/Builder)
Maugel Architects            5554              Employed by Design/Builder
30 Domino Drive
Concord, MA 01742

Normal structural, mechanical and electrical engineering services will be
provided contractually through the Architect except as indicated below:

(Name, address and discipline) (Registration Number)  (Relationship to Design/
                                                        Builder)
Kimball Chase                          30734          Employed by Design/Builder
29 New Hampshire Avenue
Portsmouth, NH 03801

BLW Engineers, Inc.                    38446          Employed by Design/Builder
465 Newtown Road
Littleton, MA 01460

The Owner and the Design/Builder agree as set forth below.
<PAGE>

                     TERMS AND CONDITIONS-PART I AGREEMENT

                                   ARTICLE 1
                                DESIGN/BUILDER

1.1   SERVICES

1.1.1 Preliminary design, budget, and schedule comprise the services required to
accomplish the preparation and submission of the Design/Builder's Proposal as
well as the preparation and submission of any modifications to the Proposal
prior to execution of the Part 2 Agreement.

1.2   RESPONSIBILITIES

1.2.1 Design services required by this Part 1 Agreement shall be performed by
qualified architects and other design professionals. The contractual obligations
of such professional persons or entities are undertaken and performed in the
interest of the Design/Builder. Design/Builder represents and warrants that all
parties engaged by it to perform services hereunder will have all necessary
licenses, certifications and other professional qualifications.

1.2.2 The agreements between the Design/Builder and the persons or entities
identified in this Part 1 Agreement, and any subsequent modifications, shall be
in writing. These agreements, including financial arrangements with respect to
this Project, shall be promptly and fully disclosed to the Owner upon request.

1.2.3 Construction budgets shall be prepared by qualified professionals, cost
estimators or contractors retained by and acting in the interest of the
Design/Builder.

1.2.4 The Design/Builder shall be responsible to the Owner for acts and
omissions of the Design/Builder's employees, subcontractors and their agents and
employees, and other persons, including the Architect and other design
professionals, performing any portion of the Design/Builder's obligations under
this Part 1 Agreement. Without limiting the generality of the foregoing, the
Design/Builder shall indemnify and hold harmless the Owner and any subsidiary,
parent or affiliate of the Owner, or other persons or entities designated by the
Owner, and their directors, officers, agents, employees, and designees for all
losses, liabilities, claims, injuries, damages and expenses, including
attorneys' fees, resulting from the acts, errors and omissions committed by the
Design/Builder, and all professional engineering consultants, subcontractors and
suppliers engaged by the Design/Builder. This Paragraph 1.2.4 shall survive the
termination of this Agreement.

1.2.5 If the Design/Builder believes or is advised by the Architect or by
another design professional retained to provide services on the Project that
implementation of any instruction received from the Owner would cause a
violation of any applicable law, the Design/Builder shall notify the Owner in
writing. Neither the Design/Builder nor the Architect shall be obligated to
perform any act which either believes will violate any applicable law.

1.2.6 Nothing contained in this Part 1 Agreement shall create a contractual
relationship between the Owner and any person or entity other than the
Design/Builder.

1.3   BASIC SERVICES

1.3.1 The Design/Builder in consultation with the Owner and any other persons or
entities designated by Owner shall develop a written program and budget for the
Project to ascertain Owner's needs and to establish the requirements for the
Project
<PAGE>

1.3.2 The Design/Builder shall visit the site, become familiar with the local
conditions, and correlate observable conditions with the requirements of the
Owner's program, schedule, and budget.

1.3.3 The Design/Builder shall review laws applicable to design and construction
of the Project; correlate such laws with the Owner's program requirements; and
advise the Owner if any program requirement may cause a violation of such laws.
Necessary changes to the Owner's program shall be accomplished by appropriate
written modification or disclosed as described in Paragraph 1.3.5.

1.3.4 The Design/Builder shall review with the Owner alternative approaches to
design and construction of the Project.

1.3.5 The Design/Builder shall submit to the Owner a Proposal, including the
completed Preliminary Design Documents, a statement of the proposed contract
sum, and a proposed schedule for completion of the Project. Preliminary Design
Documents shall consist of preliminary design drawings, outline specifications
and other documents sufficient to establish the size, quality and character of
the entire Project, its architectural, structural, mechanical and electrical
systems, and the materials and such other elements of the Project as may be
appropriate. Deviations from the Owner's program shall be disclosed in the
Proposal. If the Proposal is accepted by the Owner, the parties shall then
execute the Part 2 Agreement. A modification to the Proposal before execution of
the Part 2 Agreement shall be recorded in writing as an addendum and shall be
identified in the Contract Documents of the Part 2 Agreement.

1.3.6 The Design/Builder shall plan and organize all meetings, record minutes of
meetings, and circulate such documents to the appropriate parties for
information and review on or before the next scheduled meeting.

1.4   ADDITIONAL SERVICES

1.4.1 The Additional Services described under this Paragraph 1.4 shall be
provided by the Design/Builder and paid for by the Owner if authorized or
confirmed in writing by the Owner. "Authorized" means approved in writing,
including subsequent written confirmation of previous verbal authorization by
the Owner.

1.4.2 Making revisions in the Preliminary Design Documents, budget or other
documents when such revisions are:

     .1   inconsistent with approvals or instructions previously given by the
          Owner, including revisions made necessary by adjustments in the
          Owner's program or Project budget. "Approval" means approval in
          writing, including subsequent written confirmation of previous verbal
          approvals by the Owner;

     .2   required by the enactment or revision of codes, laws or regulations
          subsequent to the preparation of such documents; or

     .3   due to changes required as a result of the Owner's failure to render
          decisions in a timely manner.

1.4.3 Providing more extensive programmatic criteria than that furnished by the
Owner as described in Paragraph 2.1. When authorized, the Design/Builder shall
provide professional services to assist the Owner in the preparation of the
program. Programming services may consist of:

     .1   consulting with the Owner and other persons or entities not designated
          in this Part 1 Agreement to define the program requirements of the
          Project and to review the understanding of such requirements with the
          Owner;
<PAGE>

      .2   documentation of the applicable requirements necessary for the
           various Project functions or operations;

      .3   providing a review and analysis of the functional and organizational
           relationships, requirements, and objectives for the Project;

      .4   setting forth a written program of requirements for the Owner's
           approval which summarizes the Owner's objectives, schedule,
           constraints, and criteria.

1.4.4  Providing financial feasibility or other special studies.

1.4.5  Providing planning surveys, site evaluations, or comparative studies of
prospective sites.

1.4.6  Providing special surveys, environmental studies, and submissions
required for approvals of governmental authorities or others having jurisdiction
over the Project, but not including renderings required for or in connection
with such approvals.

1.4.7  Providing services relative to future facilities, systems, and equipment.

1.4.8  Providing services at the Owner's specific request to perform detailed
investigations of existing conditions or facilities or to make measured drawings
thereof.

1.4.9  Providing services at the Owner's specific request to verify the accuracy
of drawings or other information furnished by the Owner.

1.4.10 Coordinating services in connection with the work of separate persons or
entities retained by the Owner, subsequent to the execution of this Part 1
Agreement.

1.4.11 Providing analyses of owning and operating costs.

1.4.12 Providing interior design and other similar services required for or in
connection with the selection, procurement or installation of furniture,
furnishings, and related equipment.

1.4.13 Providing services for planning tenant or rental spaces.

1.4.14 Making investigations, inventories of materials or equipment, or
valuations and detailed appraisals of existing facilities.

                                   ARTICLE 2
                                     OWNER

2.1    RESPONSIBILITIES

2.1.1  The Owner shall provide information regarding requirements for the
Project, including but not limited to the Owner's design objectives, constraints
and criteria

2.1.2  [deleted]

2.1.3  The Owner shall designate a representative authorized to act on the
Owner's behalf with respect to the Project. The Owner or such authorized
representative shall render decisions in a timely manner pertaining to documents
submitted by the Design/Builder in order to avoid unreasonable delay in the
orderly and sequential
<PAGE>

progress of the Design/Builder's services. The Owner may obtain independent
review of the documents by a separate architect, engineer, contractor, or cost
estimator under contract to or employed by the Owner. Such independent review
shall be undertaken at the Owner's expense in a timely manner and shall not
delay the orderly progress of the Design/Builder's services. If the Owner fails
to render decisions pertaining to the documents submitted by the Design/Builder
within ten (10) working days after submission by Design/Builder, and if such
would cause the Design/Builder to incur additional expenses in order to keep the
Project on schedule (for such items as overtime, rush orders, or other similar
expenses), then the Design/Builder shall so notify the Owner in writing.

2.1.4  The Owner shall furnish surveys describing physical characteristics,
legal limitations and utility locations for the site of the Project, and a
written legal description of the site. The surveys and legal information shall
include, as applicable, grades and lines of streets, alleys, pavements, and
adjoining property and structures; adjacent drainage; rights-of-way,
restrictions, easements, encroachments, zoning, deed restrictions, boundaries
and contours of the site; locations, dimensions and necessary data pertaining to
existing buildings, other improvements and trees; and information concerning
available utility services and lines, both public and private, above and below
grade, including inverts and depths. All the information on the survey shall be
referenced to a Project benchmark. Design/Builder acknowledges that it has
received from Owner the surveys and materials required under this subparagraph.

2.1.5  [deleted]

2.1.6  The Owner shall disclose, to the extent known to the Owner, the results
and reports of prior tests, inspections or investigations conducted for the
Project involving: structural or mechanical systems; chemical, air and water
pollution; hazardous materials; or other environmental and subsurface
conditions. The Owner shall disclose all information known to the Owner
regarding the presence of pollutants at the Project's site.

2.1.7  The Owner shall furnish all legal, accounting and insurance counseling
services as may be necessary at any time for the Project, including such
auditing services as the Owner may require to verify the Design/Builder's
Applications for Payment.

2.1.8  The Owner shall promptly obtain easements, zoning variances, and legal
authorizations regarding site utilization where essential to the execution of
the Owner's program.

2.1.9  Those services, information, surveys, and reports required by Paragraphs
2.1.4 through 2.1.8 which are within the Owner's control shall be furnished at
the Owner's expense, and the Design/Builder shall be entitled to rely on them,
provided that Owner shall not be responsible for the contents of materials
prepared by others.

2.1.10 If the Owner requires the Design/Builder to maintain any special
insurance coverage, policy, amendment, or rider, the Owner shall pay the
additional cost thereof, except as otherwise stipulated in this Part 1
Agreement.

2.1.11 The Owner shall communicate with persons or entities employed or retained
by the Design/Builder through the Design/Builder, unless otherwise directed by
the Design/Builder.

2.1.12 The Owner may reject the Proposal submitted by the Design/Builder under
Paragraph 1.3.5 of this Part I Agreement for any reason without incurring
liability to Design/Builder, except for work previously authorized by the Owner
<PAGE>

                                   ARTICLE 3
                        OWNERSHIP AND USE OF DOCUMENTS
                              AND ELECTRONIC DATA

3.1  Drawings, specifications, and other documents and electronic data furnished
by the Design/Builder are instruments of service. The Design/Builder's Architect
and other providers of professional services shall retain all common law,
statutory and other reserved rights, including copyright in those instruments of
service furnished by them. Drawings, specifications, and other documents and
electronic data are furnished for use solely with respect to this Part 1
Agreement. The Owner shall be permitted to retain copies, including reproducible
copies, of the drawings, specifications, and other documents and electronic data
furnished by the Design/Builder for information and reference in connection with
the Project except as provided in Paragraphs 3.2 and 3.3.

3.2  If the Part 2 Agreement is not executed, the Owner shall not use the
drawings, specifications, and other documents and electronic data furnished by
the Design/Builder without the written permission of the Design/Builder.
Drawings, specifications, and other documents and electronic data shall not be
used by the Owner or others on other projects, for additions to this Project or
for completion of this Project by others, except by agreement in writing and
with appropriate compensation to the Design/Builder, unless the Design/Builder
is adjudged to be in default under this Part 1 Agreement or under any other
subsequently executed agreement, or by agreement in writing. Nothing contained
in Sections 3.1 and 3.2 shall prevent Owner from using designs and concepts
described by the drawings in other documents in the construction of other
projects.

3.3  If the Design/Builder defaults in the Design/Builder's obligations to the
Owner, the Architect shall grant a license to the Owner to use the drawings,
specifications, and other documents and electronic data furnished by the
Architect to the Design/Builder for the completion of the Project, conditioned
upon the Owner's execution of an agreement to cure the Design/Builder's default
in payment to the Architect for services previously performed and to indemnify
the Architect with regard to claims arising from such reuse without the
Architect's professional involvement.

3.4  Submission or distribution of the Design/Builder's documents to meet
official regulatory requirements or for similar purposes in connection with the
Project is not to be construed as publication in derogation of the rights
reserved in Paragraph 3.1.

                                   ARTICLE 4
                                     TIME

4.1  The Design/Builder shall prepare and submit to the Owner a schedule for the
performance of the Basic and Additional Services which shall not exceed the time
limits contained in Paragraph 10.1 and shall include allowances for periods of
time required for the Owner's review and for approval of submissions by
authorities having jurisdiction over the Project.

4.2  If the Design/Builder is delayed in the performance of services under this
Part 1 Agreement through no fault of the Design/Builder, any applicable schedule
shall be adjusted as may be mutually agreed.
<PAGE>

                                   ARTICLE 5
                                   PAYMENTS

5.1  The initial payment provided in Article 9 shall be made upon execution of
this Part 1 Agreement and credited to the Owner's account as provided in
Subparagraph 9.1.2.

5.2  Subsequent payments for Basic Services, Additional Services, and
Reimbursable Expenses provided for in this Part 1 Agreement shall be made
monthly on the basis set forth in Article 9. Applications for Payment for Part 1
Basic Services, Additional Services and Reimbursable Expenses shall be prepared
by the Design/Builder and submitted to the Owner monthly. Applications for
Payment shall be dated the last day of the agreed monthly payment period, and
the amount claimed shall be for the value of the services rendered, provided
that the total amount claimed shall not exceed the total amount stated in
Article 9. Each Application for Payment shall be supported by such evidence as
to its correctness as the Owner or its lender may reasonably direct.

5.3  Within ten (10) days of the Owner's receipt of a properly submitted and
correct Application for Payment, the Owner shall make payment to the
Design/Builder.

5.4  Payments due the Design/Builder under this Part 1 Agreement which are not
paid when due shall bear interest from the date due at the rate specified in
Paragraph 9.5, or in the absence of a specified rate, at the legal rate
prevailing where the project is located unless the Owner in good faith disputes
any amount alleged to be due, in which case no interest shall accrue until the
dispute is resolved

                                   ARTICLE 6
                        DISPUTE RESOLUTION - MEDIATION
                                AND ARBITRATION

6.1  Claims, disputes or other matters in question between the parties to this
Part 1 Agreement arising out of or relating to this Part 1 Agreement or breach
thereof shall be subject to and decided by mediation or arbitration. Such
mediation or arbitration shall be conducted in accordance with the Construction
Industry Mediation or Arbitration Rules of the American Arbitration Association
currently in effect, unless the parties mutually agree otherwise.

6.2  In addition to and prior to arbitration, the parties shall endeavor to
settle disputes by mediation. Demand for mediation shall be filed in writing
with the other party to this Part 1 Agreement and with the American Arbitration
Association. A demand for mediation shall be made within a reasonable time after
the claim, dispute or other matter in question has arisen. In no event shall the
demand for mediation be made after the date when institution of legal or
equitable proceedings based on such claim, dispute or other matter in question
would be barred by the applicable statute of repose or limitations.

6.3  Demand for arbitration shall be filed in writing with the other party to
this Part 1 Agreement and with the American Arbitration Association. A demand
for arbitration shall be made within a reasonable time after the claim, dispute
or other matter in question has arisen. In no event shall the demand for
arbitration be made after the date when institution of legal or equitable
proceedings based on such claim, dispute or other matter in question would be
barred by the applicable statutes of repose or limitations.

6.4  [deleted]

6.5  The award rendered by the arbitrator or arbitrators shall be final, and
judgment may be entered upon it in accordance with applicable law in any court
having jurisdiction thereof.
<PAGE>

                                   ARTICLE 7
                           MISCELLANEOUS PROVISIONS

7.1      Unless otherwise provided, this Part 1 Agreement shall be governed by
the law of the place where the Project is located.

7.2      The Owner and the Design/Builder, respectively, bind themselves, their
partners, successors, assigns and legal representatives to the other party to
this Part 1 Agreement and to the partners, successors and assigns of such other
party with respect to all covenants of this Part 1 Agreement. Neither the Owner
nor the Design/Builder shall assign this Part 1 Agreement without the written
consent of the other.

7.3      Unless otherwise provided, neither the design for nor the cost of
remediation of hazardous materials shall be the responsibility of the
Design/Builder, provided, however, the Design/Builder shall report to the Owner
the presence and location of any hazardous material that a Design/Builder of
similar skill and expertise should have noticed.

7.4      This Part 1 Agreement represents the entire and integrated agreement
between the Owner and the Design/Builder and supersedes all prior negotiations,
representations or agreements, either written or oral. This Part 1 Agreement may
be amended only by written instrument signed by both the Owner and the
Design/Builder.

7.5      Prior to the termination of the services of the Architect or any other
design professional designated in this Part 1 Agreement, the Design/Builder
shall identify to the Owner in writing another architect or design professional
with respect to whom the Owner has no reasonable objection, who will provide the
services originally to have been provided by the Architect or other design
professional whose services are being terminated.

                                   ARTICLE 8
                         TERMINATION OF THE AGREEMENT

8.1      This Part 1 Agreement may be terminated by either party upon seven (7)
days' written notice should the other party fail to perform substantially in
accordance with its terms through no fault of the party initiating the
termination.

8.2      This Part 1 Agreement may be terminated by the Owner without cause upon
at least seven (7) days' written notice to the Design/Builder.

8.3      In the event of termination not the fault of the Design/Builder, the
Design/Builder shall be compensated for services performed to the termination
date.

                                   ARTICLE 9
                             BASIS OF COMPENSATION

The Owner shall compensate the Design/Builder in accordance with Article 5,
Payments, and the other provisions of this Part 1 Agreement as described below.

9.1      COMPENSATION FOR BASIC SERVICES

9.1.1    FOR BASIC SERVICES, compensation shall be as follows:
<PAGE>

9.1.2     AN INITIAL PAYMENT of Five Thousand Dollars ($5,000.00) shall be made
upon execution of this Part I Agreement and credited to the Owner's account as
follows:

9.1.3     SUBSEQUENT PAYMENTS shall be as follows:
Owner shall make monthly progress payments on account of the contract sum for
the percentage of completion of each portion of the work.

9.2       COMPENSATION FOR ADDITIONAL SERVICES

9.2.1     FOR ADDITIONAL SERVICES, compensation shall be as follows:

9.3       REIMBURSABLE EXPENSES

9.3.1     [deleted]

9.3.2     [deleted]

9.4       [deleted]

9.5       INTEREST PAYMENTS

9.5.1     The rate of interest for past due payments shall be as follows:
One and one-half (1.5%) percent per month.  (Annual rate of 18%).

(Usury laws and requirements under the Federal Truth in Lending Act, similar
state and local consumer credit laws and other regulations at the Owner's and
Design/Builder's principal places of business, at the location of the Project
and elsewhere may affect the validity of this provision. Specific legal advice
should be obtained with respect to deletion, modification or other requirements,
such as written disclosures or waivers.)

9.6       If the scope of the Project is changed materially, the amount of
compensation shall be subject to the written agreement of the parties prior to
the implementation of such change.

9.7       The compensation set forth in this Part 1 Agreement shall be equitably
adjusted if through no fault of the Design/Builder the services have not been
completed within (6) months of the date of this Part 1 Agreement.

                                  ARTICLE 10
                         OTHER CONDITIONS AND SERVICES

10.1      The Basic Services to be performed shall be commenced on 12/9/99 and,
subject to authorized adjustments and to delays not caused by the
Design/Builder, shall be completed in (150) calendar days. The Design/Builder's
Basic Services consist of those described in Paragraph 1.3 as part of Basic
Services, and include normal Professional engineering and Preliminary design
services, unless otherwise indicated.

10.2      Services beyond those described in Paragraph 1.4 are as follows:
(Insert descriptions of other services, identify Additional Services included
within Basic Compensation and modifications to the payment and compensation
terms included in this Agreement.)
<PAGE>

10.3  The Owner's preliminary program, budget, and other documents, if any, are
enumerated as follows:

10.4  The Design/Builder shall provide satisfactory proof to the Owner that the
Design Professionals are carrying Errors & Omissions Insurance covering its work
on this project in an amount and with a deductible clause customarily carried by
Design Professionals and providing at least thirty (30) days advance written
notice of cancellation or material change.

10.5  The Design/Builder shall also carry Statutory Workers Compensation,
including at least $300,000 employer's liability, with a Company duly licensed
by the Commonwealth of Massachusetts, and shall also provide certificates of
insurance evidencing that coverage, and providing at least (30) days advanced
written notice of cancellation or material change.

10.6  The Owner shall be named as additional insured on all policies.

10.7  At no cost to Owner the Design/Builder shall assist Owner in the
investigation and defense of any claims which arise from the designs prepared by
Design/Builder and are the result of errors, omissions, or negligence of the
Design/Builder, its agents, employees, subcontractors, or others for whose
action it is liable.

Title                                                                       Date

This Agreement entered into as of the day and year first written above.

OWNER                                          DESIGN/BUILDER

/s/ Valentin Gapontsev                         /s/ Raymond Aho, President
--------------------------------               ---------------------------------
(signature)                                    (signature)
IPG Photonics Corporation                      Aho Construction Inc.
(Printed name and title)                       (Printed name and title)
<PAGE>

                      Standard Form of Agreements Between
                           Owner and Design/Builder

                     AIA Document A191 - Electronic Format

This document comprises two separate Agreements: Part 1 Agreement and Part 2
Agreement. Before executing the Part 1 Agreement. the parties should reach
substantial agreement on the Part 2 Agreement. To the extent referenced in these
Agreements, subordinate parallel agreements to A 191 consist of AIA Document
A491, Standard Form of Agreements Between Design/Builder and Contractor and AIA
Document B901, Standard Form of Agreements Between Design/Builder and Architect.

                               PART 2 AGREEMENT

                                 1996 EDITION

AGREEMENT made as of the 10th day of March in the year of Two Thousand

(In words, indicate day, month and year.)

BETWEEN the Owner:
(Name and address)
IPG Photonics Corporation P.O. Box 519, 660 Main Street Sturbridge, MA 01566

and the Design/Builder:
(Name and address)
Aho Construction Inc. Appleton Business Center New Ipswich, NH 03071

For the following Project:
(Include Project name, location and a summary description.)
Three Story Office and Technology Building, Building #1 & Building #2
20 Old Webster Road Oxford, MA

The architectural services described in Article 3 will be provided by the
following person or entity who is lawfully licensed to practice architecture:
(Name and address)     (Registration Number)   (Relationship to Design/Builder))

Maugel Architects                 5554                Employed by Design/Builder
30 Domino Drive
Concord, MA 01742

Normal structural, mechanical and electrical engineering services will be
provided contractually through the Architect except as indicated below:

(Name and address and discipline)   (Registration Number)    (Relationship to
                                                             Design/Builder))

Kimball Chase                           30734                Employed by
29 New Hampshire                                             Design/Builder
Portsmouth, NH 03801

BLW Engineers, Inc.                     38446                Employed by
465 Newtown Rd.                                              Design/Builder
Littleton, MA 01460

The Owner and the Design/Builder agree as set forth below.
<PAGE>

                                   ARTICLE 1
                              GENERAL PROVISIONS

1.1       BASIC DEFINITIONS

1.1.1     The Contract Documents consist of the Part 1 Agreement to the extent
not modified by this Part 2 Agreement, this Part 2 Agreement, the
Design/Builder's Proposal and written addenda to the Proposal identified in
Article 14, the Construction Documents approved by the Owner in accordance with
Subparagraph 3.2.3 and Modifications issued after execution of this Part 2
Agreement. A Modification is a Change Order or a written amendment to this Part
2 Agreement signed by both parties, or a Construction Change Directive issued by
the Owner in accordance with Paragraph 8.3.

1.1.2     The term "Work" means the construction and services required by the
Contract Documents and includes all other labor, materials, equipment and
services provided or to be provided by the Design/Builder to fulfill the
Design/Builder's obligations. The Work may constitute the whole or a part of the
Project.

1.2       EXECUTION, CORRELATION AND INTENT

1.2.1     It is the intent of the Owner and Design/Builder that the Contract
Documents include all items necessary for proper execution and completion of the
Work. The Contract Documents are complementary, and what is required by one
shall be as binding as if required by all; performance by the Design/Builder
shall be required only to the extent consistent with and reasonably inferable
from the Contract Documents as being necessary to produce the intended results
unless it is necessary to meet applicable codes, standards and regulations or to
meet with the approval of the authorities having jurisdiction. Words that have
well-known technical or construction industry meanings are used in the Contract
Documents in accordance with such recognized meanings.

          In the event of conflicts between documents, the following priorities
shall apply:

          (a)  Documents of later date shall govern.

          (b)  Figured dimensions shown on the Drawings shall govern even
               though they may differ from scaled dimensions.

          (c)  Drawings of larger scale shall govern over those of smaller scale
               of the same date.

          (d)  Specifications shall govern over Drawings.

All Work mentioned or indicated in the Contract Documents shall be performed by
the Design/Builder as part of this Part 2 Agreement unless it is specifically
indicated in the Contract Documents that such Work is to be done by others.

1.2.2     If the Design/Builder believes or is advised by the Architect or by
another design professional retained to provide services on the Project that
implementation of any instruction received from the Owner would cause a
violation of any applicable law, the Design/Builder shall notify the Owner in
writing. Neither the Design/Builder nor the Architect shall be obligated to
perform any act which either believes will violate any applicable law.

1.2.3     Nothing contained in this Part 2 Agreement shall create a contractual
relationship between the Owner and any person or entity other than the
Design/Builder.

1.2.4     Execution of the Contract by the Design/Builder is a representation
that the Design/Builder has visited the site, become familiar with local
conditions under which the Work is to be performed and correlated personal
observations with requirements of the Contract Documents

1.3       OWNERSHIP AND USE OF DOCUMENTS
<PAGE>

1.3.1     Drawings, specifications, and other documents and electronic data
furnished by the Design/Builder are instruments of service. The Design/Builder's
Architects and other providers of professional services shall retain all common
law, statutory and other reserved rights, including copyright in those
instruments of service furnished by them. Drawings, specifications, and other
documents and electronic data are furnished for use solely with respect to this
Part 2 Agreement. The Owner shall be permitted to retain copies, including
reproducible copies, of the drawings, specifications, and other documents and
electronic data furnished by the Design/Builder for information and reference in
connection with the Project except as provided in Subparagraphs 1.3.2 and 1.3.3.

1.3.2     Drawings, specifications, and other documents and electronic data
furnished by the Design/Builder shall not be used by the Owner or others on
other projects, for additions to this Project or for completion of this Project
by others, except by agreement in writing and with appropriate compensation to
the Design/Builder, unless the Design/Builder is adjudged to be in default under
this Part 2 Agreement or under any other subsequently executed agreement.

1.3.3     If the Design/Builder defaults in the Design/Builder's obligations to
the Owner, the Architect shall grant a license to the Owner to use the drawings,
specifications, and other documents and electronic data furnished by the
Architect to the Design/Builder for the completion of the Project, conditioned
upon the Owner's execution of an agreement to cure the Design/Builder's default
in payment to the Architect for services previously performed and to indemnify
the Architect with regard to claims arising from such reuse without the
Architect's professional involvement.

1.3.4      Submission or distribution of the Design/Builder's documents to meet
official regulatory requirements or for similar purposes in connection with the
Project is not to be construed as publication in derogation of the rights
reserved in Subparagraph 1.3.1. Nothing contained in Sections 1.3.1 and 1.3.2
shall prevent Owner from using designs and concepts described by the drawings in
other documents in the construction of other projects. The Owner's
representative may rely on the accuracy of the Design/Builder's minutes of
weekly meetings, monthly status reports and statements. The Owner shall examine
the documents submitted by the Design/Builder and shall render decisions
pertaining thereto within ten (10) working days of submission by the
Design/Builder to avoid unreasonable delay in the orderly progress of the final
design and construction. If the Owner fails to render decisions pertaining to
the documents submitted by the Design/Builder within ten (10) working days after
submission by Design/Builder, and
<PAGE>

if such failure would cause the Design/Builder to incur additional expenses in
order to keep the Project on schedule (for such items as overtime, rush orders,
or other similar expenses), then the Design/Builder shall notify the Owner in
writing within five (5) days of Owner's failure to render a decision.

                                   ARTICLE 2
                                     OWNER

2.1       The Owner shall designate a representative authorized to act on the
Owner's behalf with respect to the Project. The Owner or such authorized
representative shall examine documents submitted buy the Design/Builder and
shall render decisions in a timely manner and in accordance with the schedule
accepted by the Owner. The Owner may obtain independent review of the Contract
Documents by a separate architect, engineer, contractor, or cost estimator under
contract to or employed by the Owner. Such independent review shall be
undertaken at the Owner's expense in a timely manner and shall not delay the
orderly progress of the Work.

2.2       The Owner may appoint an on-site project representative to observe the
Work and to have such other responsibilities as the Owner and Design/Builder
agree in writing.

2.3       The Owner shall cooperate with the Design/Builder in securing building
and other permits, licenses and inspections. The Owner shall not be required to
pay the fees for such permits, licenses and inspections unless the cost of such
fees is excluded from the Design/Builder's Proposal.

2.4       The Owner shall furnish services of land surveyors, and other
consultants for subsoil, air and water conditions, in addition to those provided
under the Part 1 Agreement, when such services are deemed necessary by the
Design/Builder to properly carry out the design services required by this Part 2
Agreement.

2.5       The Owner shall disclose, to the extent known to the Owner, the
results and reports of prior tests, inspections or investigations conducted for
the Project involving: structural or mechanical systems; chemical, air and water
pollution; hazardous materials; or other environmental and subsurface
conditions. The Owner shall disclose all information known to the Owner
regarding the presence of pollutants at the Project's site.

2.6       The Owner shall furnish all legal, accounting and insurance counseling
services as may be necessary at any time for the Project, including such
auditing services as the Owner may require to verify the Design/Builder's
Applications for Payment.

2.7       Those services, information, surveys and reports required by
Paragraphs 2.4 through 2.6 which are within the Owner's control shall be
furnished at the Owner's expense, and the Design/Builder shall be entitled to
rely upon the accuracy and completeness thereof, except to the extent the Owner
advises the Design/Builder to the contrary in writing, and except to the extent
the Design/Builder should reasonably know they are not accurate or complete. The
Owner shall not be responsible for the contents and materials prepared by others
and the Design/Builder shall look solely to those professionals.

2.8       If the Owner requires the Design/Builder to maintain any special
insurance coverage, policy, amendment, or rider, the Owner shall pay the
additional cost thereof, except as otherwise stipulated in this Part 2
Agreement.

2.9       If the Owner observes or otherwise becomes aware of a fault or defect
in the Work or nonconformity with the Design/Builder's Proposal or the
Construction Documents, the Owner shall give prompt written notice thereof to
the Design/Builder.
<PAGE>

2.10      The Owner shall, at the request of the Design/Builder, prior to
execution of this Part 2 Agreement and promptly upon request thereafter, furnish
to the Design/Builder reasonable evidence that financial arrangements have been
made to fulfill the Owner's obligations under the Contract.

2.11      The Owner shall communicate with persons or entities employed or
retained by the Design/Builder through the Design/Builder, unless otherwise
directed by the Design/Builder.

2.12      If the Design/Builder fails to correct Work which is not in accordance
with the requirements of the Contract Documents or persistently fails to carry
out Work in accordance with the Contract Documents, the Owner, by written order
signed personally or by an agent specifically so empowered by the Owner in
writing, may order the Design/Builder to stop the Work, or any portion thereof,
until the cause for such order has been eliminated; however, the right of the
Owner to stop the Work shall not give rise to a duty on the part of the Owner to
exercise this right for the benefit of the Design/Builder or any other person or
entity.

                                   ARTICLE 3
                                DESIGN/BUILDER

3.1       SERVICES AND RESPONSIBILITIES

3.1.1     Design services required by this Part 2 Agreement shall be performed
by qualified architects and other design professionals. The contractual
obligations of such professional persons or entities are undertaken and
performed in the interest of the Design/Builder. The Design/Builder represents
and warrants that all architects, professional engineers, subcontractors and
suppliers will have all necessary licenses, certifications and other
professional qualifications.

3.1.2     The agreements between the Design/Builder and the persons or entities
identified in this Part 2 Agreement, and any subsequent modifications, shall be
in writing. These agreements, including financial arrangements with respect to
this Project, shall be promptly and fully disclosed to the Owner upon request.

3.1.3     The Design/Builder shall be responsible to the Owner for acts and
omissions of the Design/Builder's employees, subcontractors and their agents and
employees, and other persons, including the Architect and other design
professionals, performing any portion of the Design/Builder's obligations under
this Part 2 Agreement. Without limiting the generality of the foregoing, the
Design/Builder shall indemnify and hold harmless the Owner and any subsidiary,
parent or affiliate of the Owner, or other persons or entities designated by the
Owner, and their directors, officers, agents, employees, and designees for all
losses, liabilities, claims, injuries, damages and expenses, including
attorneys' fees, resulting from the acts, errors and omissions committed by the
Design/Builder, and all professional engineering consultants, subcontractors and
suppliers engaged by the Design/Builder. This paragraph 3.1.3 shall survive the
termination of this Agreement.

3.2       BASIC SERVICES

3.2.1     The Design/Builder's Basic Services are described below and in Article
14.

3.2.2     The Design/Builder shall employ a competent superintendent, reasonably
acceptable to the Owner, and necessary assistants who shall be in attendance at
the Project site fun time during the progress of the Work until the date of
Substantial Completion, and for such additional time thereafter as the
Design/Builder may determine to be necessary for the expeditious completion of
the Work. The Design/Builder shall remove the superintendent if requested to do
so in writing by the Owner, and shall promptly replace him with a competent
person reasonably acceptable to the Owner. The superintendent shall represent
the Design/Builder, and communications given to the
<PAGE>

superintendent shall be as binding as if given to the Design/Builder. Important
communications shall be confirmed in writing and directed to Design/Builder at
address first written above. Other communications shall be similarly confirmed
on written request in each case.

          Owner may employ a representative who shall be in attendance at the
Project site from time to time or full time as the Owner deems necessary.

3.2.3     The Design/Builder shall produce all Construction Documents necessary
to set forth in greater detail the requirements for the performance of the Work,
and shall submit these Construction Documents to the Owner for Approval
Construction Documents may include drawings, specifications, and other documents
and electronic data setting forth in detail the requirements for construction of
the Work, and shall:

          .1   be consistent with the intent of the Design/Builder's Proposal;

          .2   provide information for the use of those in the building trades;
               and

          .3   include documents customarily required for regulatory agency
               approvals.

          Following review of the Construction Documents, the Owner may, as he
may deem necessary for the performance of the Work, issue additional
instructions, by means of drawings or otherwise, and the Construction Documents
shall be revised to reflect such additional instructions, and the Work shall be
performed in conformity therewith, and the Design/Builder shall do no such work
without such additional instructions. In giving such additional instructions,
the Owner shall have the authority to make minor changes in the Work, not
inconsistent with the Part 2 Agreement. The Design/Builder, when required to do
so, shall furnish to the Owner, at proper times, all shop and setting drawings
and diagrams which the Owner may deem necessary in order to make clear the work
intended or to show its relation to adjacent work of other trades. The
Design/Builder shall make any changes in such drawings or diagrams which the
Owner may require, consistent with the Contract, and shall submit sufficient
copies of the revised prints to the Owner for Approval, all but one of which
shall be returned to the Design/Builder if Approved by the Owner. When
submitting such shop and setting drawings, the Design/Builder shall notify the
Owner in writing of changes made therein from the Design/Builder's drawings or
specifications. The Owner's Approval of such drawings or of the revised drawings
shall not relieve the Design/Builder from responsibility for errors or omissions
made by the Design/Builder therein, or for changes made from the
Design/Builder's drawings or specifications not covered by the Design/Builder's
written notification to the Owner. All models and templates submitted shall
conform to the spirit and intent of the Contract Documents. The Design/Builder
shall submit for the Owner's Approval such manufacturer's standard samples as
the Owner may reasonably require, and provide samples of special material,
assemblies or components when so specified. All samples shall be labeled as to
origin and intended use in the Work and shall conform to the spirit and intent
of the Contract Documents.

3.2.4     The Design/Builder, with the assistance of the Owner, shall file
documents required to obtain necessary approvals of governmental authorities
having jurisdiction over the Project.

3.2.5     Unless otherwise provided in the Contract Documents, the
Design/Builder shall provide or cause to be provided and shall pay for design
services, labor, materials, equipment, tools, construction equipment and
machinery, water, heat, utilities, transportation and other facilities and
services necessary for proper execution and completion of the Work, whether
temporary or permanent and whether or not incorporated or to be incorporated in
the Work. The word "provide" shall mean completely furnish and install,
including connections, unless otherwise specified.

3.2.6     The Design/Builder shall supervise and direct the Work, using the
Design/Builder's best skill and attention. The Design/Builder shall be
responsible for all construction means, methods, techniques, sequences and
procedures, and for coordinating all portions of the Work under this Part 2
Agreement. Where the Contract Documents refer to

<PAGE>

particular construction means, methods, techniques, sequences or procedures or
indicate or imply that such are to be used in the Work, such mention is intended
only to indicate that the operations of the Design/Builder shall be such as to
produce at least the quality of work implied by the operations described, but
the actual determination of whether or not the described operations may be
safely and suitably employed on the Work shall be the responsibility of the
Design/Builder, who shall notify the Owner in writing of the actual means,
methods, techniques, sequences or procedures which will be employed on the Work,
if these differ from those mentioned in the Contract Documents. All loss,
damage, or liability, or cost of correcting defective work arising from the
employment of any construction means, methods, techniques, sequences or
procedures shall be borne by the Design/Builder, notwithstanding that such
construction means, methods, techniques, sequences or procedures are referred
to, indicated or implied by the Contract Documents, unless the Design/Builder
has given timely notice to the Owner in writing that such means, methods,
techniques, sequences or procedures are not safe or suitable, and the Owner has
then instructed the Design/Builder in writing to proceed at the Owner's risk.

3.2.7     The Design/Builder shall plan and organize separate meetings on the
design development and on the construction of the Project every week, record
minutes of these meetings, and circulate such documents to the appropriate
parties for information and review on or before the next scheduled meeting.

          The Design/Builder shall keep the Owner fully informed of the quality
and progress of the Project by delivery to the Owner a written status report
every month. This status report shall highlight the problem areas in the Final
Design and/or Construction, and shall include a proposed plan for remedial
action, the up-to-date detailed Schedule for Completion of the Project, as well
as any other details the Owner may reasonably request.

          The Design/Builder shall also keep the Owner fully informed of the
cost of the Project by delivering to the Owner a written statement every month.
This statement shall not only give a summary of the actual costs incurred or
committed to date and an accurate forecast of the Cost of the Project to
completion, but also give the up-to-date Stipulated Sum and particulars (as full
and detailed as practicable) of all claims for any additional payment to which
the Design/Builder may consider itself entitled and of all extra or additional
work ordered by the Owner which the Design/Builder has executed during the
preceding month. No claim for payment for any such expense or work shall be
considered which has not been included in such particulars.

3.2.8     The Design/Builder shall be responsible for correcting Work which does
not conform to the Contract Documents.

3.2.9     The Design/Builder warrants to the Owner that materials and equipment
furnished under the Contract will be of good quality and new unless otherwise
required or permitted by the Contract Documents, that the construction will be
free from faults and defects, and that the construction will conform with the
requirements of the Contract Documents. Construction not conforming to these
requirements, including substitutions not properly approved by the Owner, shall
be corrected in accordance with Article 9. The Design/Builder shall be
responsible for determining that all materials furnished for the Work meet all
requirements of the Contract Documents. The Owner may require the Design/Builder
to produce reasonable evidence that a material meets such requirements, such as
certified reports of past tests by qualified testing laboratories, reports of
studies by qualified experts, or other evidence which, in the opinion of the
Owner, would lead to a reasonable certainty that any material used, or proposed
to be used, in the Work meets the requirements of the Contract Documents. All
such data shall be furnished at the Design/Builder's expense. This provision
shall not require the Design/Builder to pay for periodic testing of different
batches of the same material, unless such testing is specifically required by
the Contract Documents to be performed at the Design/Builder's expense. If the
Design/Builder proposes to use a material which, while suitable for the intended
use, deviates in any way from the detailed requirements of the Contract
Documents, the Design/Builder shall inform the Owner in writing of the nature of
such deviations at the time the material is submitted for Approval, and shall
request written Approval of the deviation from the requirements of the Contract
Documents.

          In requesting Approval of deviations or substitutions, the
Design/Builder shall provide, upon request, evidence leading to a reasonable
certainty that the proposed substitution or deviation will provide a quality of
result at least equal to that otherwise attainable. If, in the opinion of the
Owner, the evidence presented by the Design/Builder does not provide a
sufficient basis for such reasonable certainty, the Owner may reject such
substitution or deviation without further investigation.

          Any additional cost, or any loss or damage arising from the
substitution of any material or any method for those originally specified shall
be borne by the Design/Builder, notwithstanding Approval or acceptance of such
substitution by the Owner, unless such substitution was made at the written
request or direction of the Owner.

          The warranty provided in this subparagraph 3.2.9 shall be in addition
to and not in limitation of any other warranty required by the Contract Document
or otherwise prescribed by law."

3.2.10    The Design/Builder shall pay all sales, consumer, use and similar
taxes which had been legally enacted at the time the Design/Builder's Proposal
was first submitted to the Owner, and shall secure and pay for building and
other permits and governmental fees, licenses and inspections necessary for the
proper execution and completion of

<PAGE>

the Work which are either customarily secured after execution of a contract for
construction or are legally required at the time the Design/Builder's Proposal
was first submitted to the Owner.

3.2.11    The Design/Builder shall comply with and give notices required by
laws, ordinances, rules, regulations and lawful orders of public authorities
relating to the Project.

3.2.12    The Design/Builder shall pay royalties and license fees for patented
designs, processes or products. The Design/Builder shall defend suits or claims
for infringement of patent rights and shall hold the Owner harmless from loss on
account thereof, but shall not be responsible for such defense or loss when a
particular design, process or product of a particular manufacturer is required
by the Owner. However, if the Design/Builder has reason to believe the use of a
required design, process or product is an infringement of a patent, the
Design/Builder shall be responsible for such loss unless such information is
promptly furnished to the Owner.

3.2.13    The Design/Builder shall keep the premises and surrounding area free
from accumulation of waste materials or rubbish caused by operations under this
Part 2 Agreement. At the completion of the Work, the Design/Builder shall remove
from the site waste materials, rubbish, the Design/Builder's tools, construction
equipment, machinery, and surplus materials. Concrete and ceramic surfaces shall
be cleaned and washed. Resilient coverings shall be cleaned, waxed and buffed.
Woodwork shall be dusted and cleaned. Sash, fixtures and equipment shall be
thoroughly cleaned. Stains, spots, dust, marks and smears shall be removed from
all surfaces. Hardware and all metal surfaces shall be cleaned and polished.
Glass and plastic surfaces shall be thoroughly cleaned by professional window
cleaners. All damaged, broken or scratched glass or plastic shall be replaced by
the Design/Builder at the Design/Builder's expense. If the Design/Builder fails
to clean up as provided in the Contract Documents, the Owner may do so and the
cost thereof shall be charged to the Design/Builder.

3.2.14    The Design/Builder shall notify the Owner when the Design/Builder
believes that the Work or an agreed upon portion thereof is substantially
completed. The Design/Builder shall issue a Certificate of Substantial
Completion which shall establish the Date of Substantial Completion, shall state
the responsibility of each party for security, maintenance, heat, utilities,
damage to the Work and insurance, shall include a list of items to be completed
or corrected and shall fix the time within which the Design/Builder shall
complete items listed therein. Owner shall within five (5) working days of
receipt of a Certificate of Substantial Completion from the Design/Builder, make
an inspection and assessment of the Work to verify the validity of the
application, and shall within three (3) days of this inspection, notify the
Design/Builder if the Owner disagrees with any of the provisions thereof,
including, but not limited to, whether the Work has been substantially
completed. The parties shall meet to discuss disputes between the Owner and
Design/Builder regarding the Certificate of Substantial Completion. Disputes
between the Owner and Design/Builder regarding the Certificate of Substantial
Completion shall be resolved in accordance with provisions of Article 10.

3.2.15    The Design/Builder shall maintain at the site for the Owner one record
copy of the drawings, specifications, product data, samples, shop drawings,
Change Orders and other modifications, in good order and regularly updated to
record the completed construction. These shall be delivered to the Owner upon
completion of construction and prior to final payment.

3.2.16    The Design/Builder shall enforce strict discipline and good order
among the Design/Builder's employees and other persons carrying out the
Construction Documents. The Design/Builder shall not permit employment of unfit
persons or persons not skilled in tasks assigned to them.

3.2.17    Except for the site design prepared by CME Associates for the Owner,
the Design/Builder shall establish the exterior lines and required elevations of
all buildings and structures to be erected on the site and shall establish
sufficient lines and grades for the construction of associated Work. The Owner's
Engineer or Land Surveyor shall certify as to the actual location of the
constructed facilities in relation to property lines, building lines, easements,
and other restrictive boundaries.
<PAGE>

3.2.18    The Design/Builder shall establish the building grades, lines, levels,
column, wall and partition lines required by the various Subcontractors in
laying out their Work. The Design/Builder shall coordinate and supervise the
Work performed by Subcontractors to the end that the Work is carried out without
conflict between trades and so that no trade, at any time, causes delay to the
general progress of the Work.

3.2.19    The Design/Builder and all Subcontractors shall at all times afford
each trade, any separate contractor, or the Owner, every reasonable opportunity
for the installation of Work and the storage of materials but not in a way which
unreasonably interferes with the Design/Builder.

3.2.20    The Design/Builder shall arrange for and attend job meetings with the
Owner and such other persons as the Owner may from time to time wish to have
present. The Design/Builder shall be represented by a project manager,
superintendent or other authorized main office representative. An authorized
representative of any Subcontractor or Sub-subcontractor shall attend such
meetings if the representatives' presence is requested by the Owner. Such
representatives shall be empowered to make binding commitments on all matters to
be discussed at such meetings, including costs, payments, change orders, time
schedules and manpower. Any notice required under the Contract may be served on
such representatives.

3.2.21    The Design/Builder shall provide the Owner or Owner's representative
access to the Work in preparation and progress whenever located.

3.3       ADDITIONAL SERVICES

3.3.1     The services described in this Paragraph 3.3 are not included in Basic
Services unless so identified in Article 14, and they shall be paid for by the
Owner as provided in this Part 2 Agreement, in addition to the compensation for
Basic Services. The services described in this Paragraph 3.3 shall be provided
only if authorized or confirmed in writing by the Owner.

3.3.2     Making revisions in drawings, specifications, and other documents or
electronic data when such revisions are required by the enactment or revision of
codes, laws or regulations subsequent to the preparation of such documents or
electronic data.

3.3.3     Providing consultation concerning replacement of Work damaged by fire
or other cause during construction, and furnishing services required in
connection with the replacement of such Work.

3.3.4     Providing services in connection with a public hearing, arbitration
proceeding or legal proceeding, except where the Design/Builder is a party
thereof.

3.3.5     Providing coordination of construction performed by the Owner's own
forces or separate contractors employed by the Owner, and coordination of
services required in connection with construction performed and equipment
supplied by the Owner.

3.3.6     [delete]

3.3.7     Providing assistance in the utilization of equipment or systems such
as preparation of operation and maintenance manuals, training personnel for
operation and maintenance, and consultation during operation.

                                   ARTICLE 4
                                     TIME

4.1       Unless otherwise indicated, the Owner and the Design/Builder shall
perform their respective obligations as expeditiously as is consistent with
reasonable skill and care and the orderly progress of the Project.
<PAGE>

4.2       Time limits stated in the Contract Documents are of the essence. The
Work to be performed under this Part 2 Agreement shall commence upon receipt of
a notice to proceed unless otherwise agreed and, subject to authorized
Modifications, Substantial Completion shall be achieved on or before the date
established in Article 14.

4.3       Substantial Completion is the stage in the progress of the Work when
the Work or designated portion thereof is sufficiently complete in accordance
with the Contract Documents so the Owner can occupy or utilize the Work for its
intended use and only minor items which can be corrected or completed without
any material interference with the Owner's use of the Work remains to be
corrected or completed.

4.4       Based on the Design/Builder's Proposal, a construction schedule shall
be provided consistent with Paragraph 4.2 above.

4.5       If the Design/Builder is delayed at any time in the progress of the
Work by an act or neglect of the Owner, which is not due to the fault of the
Design/Builder Owner's employees, or separate contractors employed by the Owner,
or by changes ordered in the Work, or by labor disputes, fire, unusual delay in
deliveries, adverse weather catastrophes, unavoidable casualties or other causes
beyond the Design/Builder's control or by delay authorized by the Owner pending
arbitration, or by other causes which the Owner and Design/Builder agree may
justify delay, then the Contract Time shall be reasonably extended by Change
Order.

4.6       If for any reason, which does not entitle the Design/Builder to an
extension of time, the actual rate of progress on the whole of the Work or on
any agreed upon part of the Work is at any time, in the opinion of the Owner too
slow to ensure completion by the prescribed time for completion thereof, then
the Owner shall notify the Design/Builder in writing, and the Design/Builder
shall thereupon produce a revised schedule showing the modifications to the
Approved schedule and take such steps as are necessary to complete the whole of
the Work or such agreed upon part of the Work by the prescribed time for
completion thereof. The submission to and Approval by the Owner of such revised
schedule shall not relieve the Design/Builder of any of its duties,
responsibilities or liabilities under this Contract, and the Design/Builder
shall not be entitled to any payment for taking such steps.

                                   ARTICLE 5
                                   PAYMENTS

5.1       PROGRESS PAYMENTS

5.1.1     The Design/Builder shall submit to the Owner before the first
application for payment, a schedule of values for the various sections of the
Work, aggregating the total amount of the Stipulated Sum and directed so as to
facilitate evaluation of applications for payment. This schedule shall be made
out in such form and supported by such evidence as to its correctness as the
Owner or its lender may reasonably direct. This schedule shall be updated as
early as practicable whenever competitive quotes are received from
subcontractors and suppliers.

              On or before the tenth day of each month the Design/Builder shall
              submit to the Owner an itemized Application for Payment in such
              detail as may be reasonably required by the Owner. The Application
              for Payment shall itemize the amounts up to the end of the prior
              month in respect to:

              (i)   The value of labor, materials and equipment incorporated in
                    the Work.

              (ii)  The value of unfixed materials and equipment suitably stored
                    on the site for incorporation in the Work.

              (iii) The value of services rendered under duly authorized Change
                    Orders.
<PAGE>

              (iv)  Addition or deduction for any other amounts payable to the
                    Design/Builder by the Owner or to the Owner by the
                    Design/Builder under the terms of the Contract.

              (v)   Deduction of 5% retention on the net sum resulting from the
                    accumulation of (i) to (iv) above, [provided that no further
                    deductions shall be made after the total of all such
                    deductions equals 5% of the Stipulated Sum as it may be
                    adjusted from time to time].

              (vi)  Deduction of amounts payable under all previous Applications
                    for Payment.

              (vii) Amount due to the Design/Builder."

5.1.2     Within ten (10) days of the Owner's receipt of a properly submitted
and correct Application for Payment, the Owner shall make payment to the
Design/Builder.

5.1.3     The Application for Payment shall constitute a representation by the
Design/Builder to the Owner that the design and construction have progressed to
the point indicated; the quality of the Work covered by the application is in
strict accordance with the Contract Documents; and the Design/Builder is
entitled to payment in the amount requested.

5.1.4     Upon receipt of payment from the Owner, the Design/Builder shall
promptly pay the Architect, other design professionals and each contractor the
amount to which each is entitled in accordance with the terms of their
respective contracts. The Design/Builder shall, by appropriate agreement with
each party, require each party to make payments to its sub-contractors in
similar manner. If Design/Builder fails to pay any party, or if any party with
whom the Design/Builder has a contract or is otherwise employed by the
Design/Builder fails to pay any of its sub-contractors, the Owner may make such
payment and either, at its request, be immediately reimbursed by the
Design/Builder or have such payment applied as a credit toward its obligation
unless the Design/Builder has a good faith dispute with such payee and provides
assurances to Owner that funds will be available to pay upon resolution of the
dispute.

5.1.5     The Owner shall have no obligation under this Part 2 Agreement to pay
or to be responsible in any way for payment to the Architect, another design
professional, or a contractor performing portions of the Work.

5.1.6     Neither progress payment nor partial or entire use or occupancy of the
Project by the Owner shall constitute an acceptance of Work not in strict
accordance with the Contract Documents.

5.1.7     The Design/Builder warrants that title to all work, materials and
equipment covered by an Application for Payment will pass to the Owner no later
than the time of payment. The Design/Builder further warrants that upon
submittal of an Application for Payment all work, materials and equipment for
which payments have been received from the Owner shall be free and clear of
liens, claims, security interests or encumbrances in favor of the Design/Builder
or any other person or entity.

5.1.8     At the time of Substantial Completion, the Owner shall pay the
Design/Builder the retainage, if any, less the cost to correct or complete
incorrect or incomplete Work. Final payment of such withheld sum shall be made
upon correction or completion of such Work.

5.2       FINAL PAYMENT

5.2.1     Neither final payment nor amounts retained, if any, shall become due
until the Design/Builder submits to the Owner (1) an affidavit in form and
substance reasonably satisfactory to the Owner and its lender that payrolls,
bills for materials and equipment, and other indebtedness connected with the
Work for which the Owner or Owner's
<PAGE>

property might be responsible or encumbered (less amounts withheld by the Owner)
have been paid or otherwise satisfied; (2) a certificate evidencing that
insurance required by the Contract Documents to remain in force after final
payment is currently in effect and will not be canceled or allowed to expire
until at least 30 days' prior written notice has been given to the Owner; (3) a
written statement that the Design/Builder knows of no substantial reason that
the insurance will not be renewable to cover the period required by the Contract
Documents; (4) consent of surety, if any, to final payment; and (5) if required
by the Owner, other data establishing payment or satisfaction of obligations,
such as receipts, releases and waivers of liens, claims, security interests or
encumbrances arising out of the Contract, to the extent and in such form as may
be designated by the Owner. If a contractor or other person or entity entitled
to assert a lien against the Owner's property refuses to furnish a release or
waiver required by the Owner, the Design/Builder may furnish a bond satisfactory
to the Owner to indemnify the Owner against such lien. If such lien remains
unsatisfied after payments are made, the Design/Builder shall indemnify the
Owner for all loss and cost, including reasonable attorneys' fees incurred as a
result of such lien.

5.2.2     Within thirty (30) days after Substantial Completion of the whole of
the Work and satisfaction of all conditions set forth in paragraph 5.2.1, the
Owner shall release all retainage except for a mutually agreed upon amount for
outstanding items. Those items shall be determined by a punch list prepared by
the Design/Builder and Owner. An amount equal to 1.5 times the value of the Work
shall be withheld until completion of the punch list items. Final payment
constituting the entire unpaid balance due shall be paid by the Owner to the
Design/Builder on the 30th day of the month following receipt of the
Design/Builder's final Application for Payment when the Work has been completed
to the Owner's satisfaction and the Contract fully performed except for payments
attributable to those responsibilities of the Design/Builder which survive final
payment.

5.2.3     [deleted]

5.2.4     Acceptance of final payment shall constitute a waiver of all claims by
the Design/Builder except those previously made in writing and identified by the
Design/Builder as unsettled at the time of final Application for Payment.

5.3       INTEREST PAYMENTS

5.3.1     Payments due the Design/Builder under this Part 2 Agreement which are
not paid when due shall bear interest from the date due at the rate specified in
Article 13, or in the absence of a specified rate, at the legal rate prevailing
where the Project is located unless the Owner in good faith disputes any amount
alleged to be due, in which case no interest shall accrue until the dispute is
resolved.

                                   ARTICLE 6
                      PROTECTION OF PERSONS AND PROPERTY

6.1       The Design/Builder shall be responsible for initiating, maintaining
and providing supervision of all safety precautions and programs in connection
with the performance of this Part 2 Agreement.

6.2       The Design/Builder shall take reasonable precautions for the safety
of, and shall provide reasonable protection to prevent damage, injury or loss
to: (1) employees on the Work and other persons who may be affected thereby; (2)
the Work and materials and equipment to be incorporated therein, whether in
storage on or off the site, under care, custody, or control of the
Design/Builder or the Design/Builder's contractors; (3) other property at or
adjacent thereto, such as trees, shrubs, lawns, walks, pavements, roadways,
structures and utilities not designated for removal, relocation, or replacement
in the course of construction; and (4) any other property of the Owner, whether
or not forming part of the Work, located at the site or adjacent thereto in
areas to which the Design/Builder has access.
<PAGE>

6.3       The Design/Builder shall give notices and comply with applicable laws,
ordinances, rules, regulations and lawful orders of public authorities bearing
on the safety of persons or property or their protection from damage, injury or
loss.

6.4       The Design/Builder shall promptly remedy damage and loss (other than
damage or loss insured under property insurance provided or required by the
Contract Documents) to property at the site caused in whole or in part by the
Design/Builder, a contractor of the Design/Builder or anyone directly or
indirectly employed by any of them, or by anyone for whose acts they may be
liable.

6.5       The Design/Builder shall provide and maintain in good operating
condition suitable and adequate fire protection equipment and services, and
shall comply with all reasonable recommendations regarding fire protection made
by the representatives of the fire insurance company carrying insurance on the
Work or by the local fire chief or fire marshal. The area within the site limits
shall be kept orderly and clean, and all combustible rubbish shall be promptly
removed from the site.

6.6       The Design/Builder shall at all times protect excavations, trenches,
buildings and materials, from rain water, ground water, backup or leakage of
sewers, drains and other piping, and from water of any other origin and shall
remove promptly any accumulation of water. The Design/Builder shall provide and
operate all pumps, piping and other equipment necessary to this end.

6.7       The Design/Builder shall remove snow and ice which might result in
damage or delay.

6.8       During the progress of the Work and at all times prior to the date of
Substantial Completion or occupancy of the Work by the Owner, whichever is
earlier, the Design/Builder shall provide temporary heat, ventilation, and
enclosure, adequate to permit the Work to proceed in a timely fashion, and to
prevent damage to completed Work or Work in progress, or to materials stored on
the premises.

                                   ARTICLE 7
                              INSURANCE AND BONDS

7.1       DESIGN/BUILDER'S LIABILITY INSURANCE

7.1.1     The Design/Builder shall purchase from and maintain, in a company or
companies lawfully authorized to do business in the jurisdiction in which the
Project is located and to which the Owner has no reasonable objection, such
insurance as will protect the Design/Builder from claims set forth below which
may arise out of or result from operations under this Part 2 Agreement by the
Design/Builder or by a contractor of the Design/Builder, or by anyone directly
or indirectly employed by any of them, or by anyone for whose acts any of them
may be liable:

          .1   claims under workers' compensation, disability benefit and other
               similar employee benefit laws that are applicable to the Work to
               be performed;

          .2   claims for damages because of bodily injury, occupational
               sickness or disease, or death of the Design/Builder's employees;

          .3   claims for damages because of bodily injury, sickness or disease,
               or death of persons other than the Design/Builder's employees;
<PAGE>

          .4   claims for damages covered by usual personal injury liability
               coverage which are sustained (1) by a person as a result of an
               offense directly or indirectly related to employment of such
               person by the Design/Builder or (2) by another person;

          .5   claims for damages, other than to the Work itself, because of
               injury to or destruction of tangible property, including loss of
               use resulting therefrom;

          .6   claims for damages because of bodily injury, death of a person or
               property damage arising out of ownership, maintenance or use of a
               motor vehicle; and

          .7   claims involving contractual liability insurance applicable to
               the Design/Builder's obligations under Paragraph 11.5.

7.1.2     The insurance required by subparagraph 7.1.1 shall include all major
divisions of coverage, and shall be on a comprehensive general basis including
Premises and Operations, Owner's and Contractor's Completed Operations, and
Owned, Nonowned, and Hired Motor Vehicles. The insurance required by
Subparagraph 7.1.1 shall be written for not less than limits of liability
specified in this Part 2 Agreement or required by law, whichever coverage is
greater. Coverages, whether written on an occurrence or claims-made basis, shall
be maintained without interruption from date of commencement of the Work until
date of final payment and termination of any coverage required to be maintained
after final payment. All insurance shall be written on an occurrence basis,
unless the Owner approves in writing coverage on a claims-made basis. The Owner
shall be named as an Additional Insured on all policies.

7.1.3     Certificates of Insurance acceptable to the Owner shall be delivered
to the Owner immediately after execution of this Part 2 Agreement. These
Certificates and the insurance policies required by this Paragraph 7.1 shall
contain a provision that coverages afforded under the policies will not be
canceled or allowed to expire until at least 30 days' prior written notice has
been given to the Owner. These Certificates shall set forth evidence of all
coverage required by the Contract Documents. The form of Certificate shall be
satisfactory to the Owner. The Design/Builder shall furnish to the Owner copies
of any endorsements that are subsequently issued amending limits of coverage. If
any of the foregoing insurance coverages are required to remain in force after
final payment, an additional certificate evidencing continuation of such
coverage shall be submitted with the application for final payment. Information
concerning reduction of coverage shall be furnished by the Design/Builder with
reasonable promptness in accordance with the Design/Builder's information and
belief.

7.1.4     The liability insurance required by the above subparagraph 7.1.1 shall
be written for not less than limits of liability specified below.

                Type of Coverage                            Limits of Liability
                                                            Each Occurrence

                Workers' Compensation                       Statutory Coverage
                and Employer's Liability                    $  500,000

                Comprehensive General Liability,
                including: Completed Operations
                (three years) and Contractual Liability
                General Aggregate
                Personal Injury                             $2,000,000
                Products - Comp/Op Agg                      $1,000,000
                Fire Damage                                 $2,000,000
                                                            $  250,000
<PAGE>

                Medical Expenses                            $    5,000

                                                            $1,000,000
                Automobile Liability
                Bodily Injury & Property Damage             $5,000,000
                (Combined Single Limit)
                Excess Indemnity

7.1.5     All liability insurance coverages remain in force until three (3)
years after final payment, a certificate evidencing continuation of such
coverage shall be submitted each year for three (3) years.

7.2       OWNER'S LIABILITY INSURANCE

7.2.1     The Owner shall be responsible for purchasing and maintaining the
Owner's usual liability insurance. Optionally, the Owner may purchase and
maintain other insurance for self-protection against claims which may arise from
operations under this Part 2 Agreement. The Design/Builder shall not be
responsible for purchasing and maintaining this optional Owner's liability
insurance unless specifically required by the Contract Documents.

7.3       PROPERTY INSURANCE

7.3.1     Unless otherwise provided under this Part 2 Agreement, the Owner shall
purchase and maintain, in a company or companies authorized to do business in
the jurisdiction in which the principal improvements are to be located, property
insurance upon the Work to the full insurable value thereof on a replacement
cost basis without optional deductibles. Owner may have deductibles, but shall
be responsible for payment of deductible amount in case of loss. Such property
insurance shall be maintained, unless otherwise provided in the Contract
Documents or otherwise agreed in writing by all persons and entities who are
beneficiaries of such insurance, until final payment has been made or until no
person or entity other than the Owner has an insurable interest in the property
required by this Paragraph 7.3 to be insured, whichever is earlier. This
insurance shall include interests of the Owner, the Design/Builder, and their
respective contractors and subcontractors in the Work.

7.3.2     Property insurance shall be on an all-risk policy form and shall
insure against the perils of fire and extended coverage and physical loss or
damage including, without duplication of coverage, theft, vandalism, malicious
mischief, collapse, falsework, temporary buildings and debris removal including
demolition occasioned by enforcement of any applicable legal requirements, and
shall cover reasonable compensation for the services and expenses of the
Design/Builder's Architect and other professionals required as a result of such
insured loss. Coverage for other perils shall not be required unless otherwise
provided in the Contract Documents.

7.3.3     If the Owner does not intend to purchase such property insurance
required by this Part 2 Agreement and with all of the coverages in the amount
described above, the Owner shall so inform the Design/Builder prior to
commencement of the construction. The Design/Builder may then effect insurance
which will protect the interests of the Design/Builder and the Design/Builder's
contractors in the construction and by appropriate Change Order the cost thereof
shall be charged to the Owner. If the Design/Builder is damaged by the failure
or neglect of the Owner to purchase or maintain insurance as described above,
then the Owner shall bear all reasonable costs properly attributable thereto.

7.3.4     Unless otherwise provided, the Owner shall purchase and maintain such
boiler and machinery insurance required by this Part 2 Agreement or by law,
which shall specifically cover such insured objects during installation
<PAGE>

and until final acceptance by the Owner. This insurance shall include interests
of the Owner, the Design/Builder, the Design/Builder's contractors and
subcontractors in the Work, and the Design/Builder's Architect and other design
professionals. The Owner and the Design/Builder shall be named insureds.

7.3.5     A loss insured under the Owner's property insurance shall be adjusted
by the Owner as trustee and made payable to the Owner as trustee for the
insureds, as their interests may appear, subject to requirements of any
applicable mortgagee clause and of Subparagraph 7.3.10. The Design/Builder shall
pay contractors their shares of insurance proceeds received by the
Design/Builder, and by appropriate agreement, written where legally required for
validity, shall require contractors to make payments to their subcontractors in
similar manner.

7.3.6     Before an exposure to loss may occur, the Owner shall file with the
Design/Builder a copy of each policy that includes insurance coverages required
by this Paragraph 7.3. Each policy shall contain all generally applicable
conditions, definitions, exclusions and endorsements related to this Project.
Each policy shall contain a provision that the policy will not be canceled or
allowed to expire until at least 30 days' prior written notice has been given to
the Design/Builder.

7.3.7     If the Design/Builder requests in writing that insurance for risks
other than those described herein or for other special hazards be included in
the property insurance policy, the Owner shall, if possible, obtain such
insurance, and the cost thereof shall be borne by the Design/Builder.

7.3.8     The Owner and the Design/Builder waive all rights against each other
and the Architect and other design professionals, contractors, subcontractors,
agents and employees, each of the other, for damages caused by fire or other
perils to the extent covered by property insurance obtained pursuant to this
Paragraph 7.3 or other property insurance applicable to the Work, except such
rights as they may have to proceeds of such insurance held by the Owner as
trustee. The Owner or Design/Builder, as appropriate, shall require from
contractors and subcontractors by appropriate agreements, written where legally
required for validity, similar waivers each in favor of other parties enumerated
in this Paragraph 7.3. The policies shall provide such waivers of subrogation by
endorsement or otherwise. A waiver of subrogation shall be effective as to a
person or entity even though that person or entity would otherwise have a duty
of indemnification, contractual or otherwise, did not pay the insurance premium
directly or indirectly, and whether or not the person or entity had an insurable
interest in the property damaged.

7.3.9     The Owner shall deposit in a separate account proceeds so received,
which the Owner shall distribute in accordance with such agreement as the
parties in interest may reach, or in accordance with an arbitration award in
which case the procedure shall be as provided in Article 10. If after such loss
no other special agreement is made, replacement of damaged Work shall be covered
by appropriate Change Order. The provisions of this subparagraph are subject to
the requirements, if any, of the Owner's construction and/or permanent lender.

7.3.10    The Owner as trustee shall have power to adjust and settle a loss with
insurers. If distribution of insurance proceeds by arbitration is required, the
arbitrators will direct such distribution.

7.3.11    Partial occupancy or use prior to Substantial Completion shall not
commence until the insurance company or companies providing property insurance
have consented to such partial occupancy or use by endorsement or otherwise. The
Owner and the Design/Builder shall take reasonable steps to obtain consent of
the insurance company or companies and shall not, without mutual written
consent, take any action with respect to partial occupancy or use that would
cause cancellation, lapse or reduction of coverage.

7.4       LOSS OF USE INSURANCE

7.4.1     The Owner, at the Owner's option, may purchase and maintain such
insurance as will insure the Owner against loss of use of the Owner's property
due to fire or other hazards, however caused. The Owner waives all
<PAGE>

rights of action against the Design/Builder for loss of use of the Owner's
property, including consequential losses due to fire or other hazards, however
caused.

7.5       PERFORMANCE BOND

7.5.1     Prior to the time the Design/Builder starts work on this Part 2, the
Design/Builder shall purchase and maintain in good standing until the
fulfillment of the Contract, bonds covering the faithful performance of the
Contract as required in the Contract Documents or in Article 7.

                                   ARTICLE 8
                              CHANGES IN THE WORK

8.1       CHANGES

8.1.1     Changes in the Work may be accomplished after execution of this Part 2
Agreement, without invalidating this Part 2 Agreement, by Change Order,
Construction Change Directive, or order for a minor change in the Work, subject
to the limitations stated in the Contract Documents.

8.1.2     A Change Order shall be based upon agreement between the Owner and the
Design/Builder; a Construction Change Directive may be issued by the Owner
without the agreement of the Design/Builder; an order for a minor change in the
Work may be issued by the Design/Builder alone.

8.1.3     Changes in the Work shall be performed under applicable provisions of
the Contract Documents, and the Design/Builder shall proceed promptly, unless
otherwise provided in the Change Order, Construction Change Directive, or order
for a minor change in the Work.

8.1.4     If unit prices are stated in the Contract Documents or subsequently
agreed upon, and if quantities originally contemplated are so changed in a
proposed Change Order or Construction Change Directive that application of such
unit prices to quantities of Work proposed will cause substantial inequity to
the Owner or the Design/Builder, the applicable unit prices shall be equitably
adjusted.

8.2       CHANGE ORDERS

8.2.1     A Change Order is a written instrument prepared by the Design/Builder
and signed by the Owner and the Design/Builder, stating their agreement upon all
of the following:

          .1    a change in the Work;

          .2    the amount of the adjustment , if any, in
                the Contract Sum; and

          .3    the extent of the adjustment, if any, in
                the Contract Time.
8.2.2     If the Owner requests a proposal for a change in the Work from the
Design/Builder and subsequently elects not to proceed with the change, a Change
Order shall be issued to reimburse the Design/Builder for any costs incurred for
estimating services, design services or preparation of proposed revisions to the
Contract Documents.

8.3       CONSTRUCTION CHANGE DIRECTIVES
<PAGE>

8.3.1     A Construction Change Directive is a written order prepared and signed
by the Owner, directing a change in the Work prior to agreement on adjustment,
if any, in the Contract Sum or Contract Time, or both.

8.3.2     Except as otherwise agreed by the Owner and the Design/Builder, the
adjustment to the Contract Sum shall be determined on the basis of reasonable
expenditures and savings of those performing the Work attributable to the
change, including the expenditures for design services and revisions to the
Contract Documents. In case of an increase in the Contract Sum, the cost shall
include a reasonable allowance for overhead and profit. In such case, the
Design/Builder shall keep and present an itemized accounting together with
appropriate supporting data for inclusion in a Change Order. Unless otherwise
provided in the Contract Documents, costs for these purposes shall limited to
the following:

          .1   costs of labor, including social security, old age and
               unemployment insurance, fringe benefits required by agreement or
               custom, and workers' compensation insurance;

          .2   costs of materials, supplies and equipment, including cost of
               transportation, whether incorporated or consumed;

          .3   rental costs of machinery and equipment exclusive of hand tools,
               whether rented from the Design/Builder or others;

          .4   costs of premiums for all bonds and insurance permit fees, and
               sales, use or similar taxes;

          .5   additional costs of supervision and field office personnel
               directly attributable to the change; and fees paid to the
               Architect, engineers and other professionals.

8.3.3     Pending final determination of cost to the Owner, amounts not in
dispute may be included in Applications for Payment. The amount of credit to be
allowed by the Design/Builder to the Owner for deletion or change which results
in a net decrease in the Contract Sum will be actual net cost. When both
additions and credits covering related Work or substitutions are involved in a
change, the allowance for overhead and profit shall be figured on the basis of
the net increase, if any with respect to that change.

8.3.4     When the Owner and the Design/Builder agree upon the adjustments in
the Contract Sum and Contract Time, such agreement shall be effective
immediately and shall be recorded by preparation and execution of an appropriate
Change Order.

8.4       MINOR CHANGES IN THE WORK

8.4.1     The Design/Builder shall have authority to make minor changes in the
Construction Documents and construction consistent with the intent of the
Contract Documents when such minor changes do not involve adjustment in the
Contract Sum or extension of the Contract Time. The Design/Builder shall
promptly inform the Owner, in writing, of minor changes in the Construction
Documents and construction

8.5       CONCEALED CONDITIONS

8.5.1     Should conditions encountered below the surface of the ground require
that footings, foundations or other parts of the building or other structure be
raised, lowered or changed, or if additional depth of excavation below the
levels shown on the Drawings is required in order to provide proper bearing for
the building or other structure or for any permanent utilities on the site or
for permanent grading or other permanent site work, any change in the amount of
excavation, dewatering, sheeting, protection, rock excavation, backfill,
concrete or other structural work, or any
<PAGE>

other work permanently incorporated in the building shall be considered a change
in the Work, and the contract sum shall be adjusted as provided in this Article,
provided that the Work has been ordered in writing. There shall be no adjustment
of the contract sum on account of other costs resulting from subsoil or water
conditions including, without limitation, costs on account of delay,
administration, operations, temporary construction, cave-in or collapse of
excavations, or pumping. In the event such concealed or unknown conditions
causes a material increase in the overall cost of the Project, the Owner may
terminate this Agreement.

8.6       REGULATORY CHANGES

8.6.1     The Design/Builder shall be compensated for changes in the
construction necessitated by the enactment or revisions of codes, laws or
regulations subsequent to the submission of the Design/Builder's Proposal. In
the event such revised codes, laws or regulations causes a material increase in
the overall cost of the Project, the Owner may terminate this Agreement.

                                   ARTICLE 9
                              CORRECTION OF WORK

9.1       The Design/Builder shall promptly correct Work rejected by the Owner
or known by the Design/Builder to be defective or failing to conform to the
requirements of the Contract Documents, whether observed before or after
Substantial Completion and whether or not fabricated, installed or completed.
The Design/Builder shall bear costs of correcting such rejected Work, including
additional testing and inspections.

9.2       If, within one (1) year after the date of Substantial Completion of
the Work or, after the date for commencement of warranties established in a
written agreement between the Owner and the Design/Builder, or by terms of an
applicable special warranty required by the Contract Documents, any of the Work
is found to be not in accordance with the requirements of the Contract
Documents, any of the Work is found to be not in accordance with the
requirements of the Contract Documents, the Design/Builder shall correct it
promptly after receipt of a written notice from the Owner to do so unless the
Owner has previously given the Design/Builder a written acceptance of such
condition.

9.3       Nothing contained in this Article 9 shall be construed to establish a
period of limitation with respect to other obligations which the Design/Builder
might have under the Contract Documents. Establishment of the time period of one
(1) year as described in Subparagraph 9.2 relates only to the specific
obligation of the Design/Builder to correct the Work, and has no relationship to
the time within which the obligation to comply with the Contract Documents may
be sought to be enforced, nor to the time within which proceedings may be
commenced to establish the Design/Builder's liability with respect to the
Design/Builder's obligations other than specifically to correct the Work.

9.4       If the Design/Builder fails to correct nonconforming Work as required
or fails to carry out Work in accordance with the Contract Documents, the Owner,
by written order signed personally or by an agent specifically so empowered by
the Owner in writing, may order the Design/Builder to stop the Work, or any
portion thereof, until the cause for such order has been eliminated; however,
the Owner's right to stop the Work shall not give rise to a duty on the part of
the Owner to exercise the right for benefit of the Design/Builder or other
persons or entities.

9.5       If the Design/Builder defaults or neglects to carry out the Work in
accordance with the Contract Documents and fails within seven (7) days after
receipt of written notice from the Owner to commence and continue correction of
such default or neglect with diligence and promptness, the Owner may give a
second written notice to the Design/Builder and, seven (7) days following
receipt by the Design/Builder of that second written notice and without
prejudice to other remedies the Owner may have, correct such deficiencies. In
such case an appropriate
<PAGE>

Change Order shall be issued deducting from payments then or thereafter due the
Design/Builder, the costs of correcting such deficiencies. If the payments then
or thereafter due the Design/Builder are not sufficient to cover the amount of
the deduction, the Design/Builder shall pay the difference to the Owener. If
Design/Builder fails to make such payment immediately, and such amount shall
bear interest from the date demand is made by the Owner at the interest rate
specified in Article 13. Such action by the Owner shall be subject to dispute
resolution procedures as provided in Article 10.

                                  ARTICLE 10
                              DISPUTE RESOLUTION-
                           MEDIATION AND ARBIRTATION

10.1      Claims, disputes or other matters in question between the parties to
this Part 2 Agreement arising out of or relating to this Part 2 Agreement or
breach thereof shall be subject to and decided by mediation or arbitration. Such
mediation or arbitration shall be conducted in accordance with the Construction
Industry Mediation or Arbitration Rules of the American Arbitration Association
currently in effect.

10.2      In addition to and prior to arbitration, the parties shall endeavor to
settle disputes by mediation. Demand for mediation shall be filed in writing
with the other party to this Part 2 Agreement and with the American Arbitration
Association. A demand for mediation shall be made within a reasonable time after
the claim, dispute, or other matter in question has arisen. In no event shall
the demand for mediation be made after the date when institution of legal or
equitable proceedings based on such claim, dispute or other matter in question
would be barred by the applicable statutes of repose or limitations.

10.3      Demand for arbitration shall be filed in writing with the other party
to this Part 2 Agreement and with the American Arbitration Association. A demand
for arbitration shall be made within a reasonable time after the claim, dispute
or other matter in question has arisen. In no event shall the demand for
arbitration be made after the date when institution of legal or equitable
proceedings based on such claim, dispute or other matter in question would
barred by the applicable statutes of repose or limitations.

10.4      [deleted]

10.5      The award rendered by the arbitrator or arbitrators shall be final,
and judgment may entered upon it in accordance with applicable law in any court
having jurisdiction thereof.

10.6      If either party institutes arbitration or litigation proceedings to
enforce its rights hereunder and such proceedings are determined (by final
adjudication or arbitration) to have been justified by the other party's breach
of its obligations under this Agreement or otherwise, then the breaching party
shall pay all the non-breaching party's costs related to such proceedings,
including reasonable attorneys' fees in amounts to be determined by the
finder(s) of fact, except in the case of good faith dispute, in which case each
party will bear their own expenses of arbitration, including legal fees.

10.7      Unless otherwise agreed in writing, and except as provided in Article
12, the Design/Builder shall carry on the services and maintain progress during
any arbitration proceedings, and the Owner shall continue to make payments to
the Design/Builder.
<PAGE>

                                  ARTICLE 11
                           MISCELLANEOUS PROVISIONS

11.1      Unless otherwise provided, this Part 2 Agreement shall be governed by
the law of the place where the Project is located.

11.2      SUBCONTRACTS

11.2.1    The Design/Builder, as soon as practicable after execution of this
Part 2 Agreement, shall furnish to the Owner in writing the names of the persons
or entities the Design/Builder will engage as contractors for the Projects.

11.3      WORK BY OWNER OR OWNER'S
          CONTRACTORS

11.3.1    The Owner reserves the right to perform construction or operations
related to the Project with the Owner's own forces, and to award separate
contracts in connection with other portions of the Project or other construction
or operations on the site under conditions of insurance and waiver of
subrogation identical to the provisions of this Part 2 Agreement. If the
Design/Builder claims that delay or additional cost is involved because of such
action by the Owner, the Design/Builder shall assert such claims by notifying
Owner in writing within seven (7) days after Owner makes Design/Builder aware of
Owner's intent to perform such work. as provided in Subparagraph 11.4.

11.3.2    The Design/Builder shall afford the Owner's separate contractors
reasonable opportunity for introduction and storage of their materials and
equipment and performance of their activities and shall connect and coordinate
the Design/Builder's construction and operations with theirs as required by the
Contract Documents.

11.3.3    Costs caused by delays or by improperly timed activities or defective
construction shall be borne by the party responsible therefor.

11.4      CLAIMS FOR DAMAGES

11.4.1    If either party to this Part 2 Agreement suffers injury or damage to
person or property because of an act or omission of the other party, of any of
the other party's employees or agents, or of others for whose acts such party is
legally liable, written notice of such injury or damage, whether or not insured,
shall be given to the other party within a reasonable time after first
observance. The notice shall provide sufficient detail to enable the other party
to investigate the matter. If a claim of additional cost or time related to this
claim is to be asserted, it shall be filed in writing.

11.5      INDEMNIFICATION

11.5.1    To the fullest extent permitted by law, the Design/Builder shall
indemnify and hold harmless the Owner's consultants, and agents and employees of
any of them from and against claims, damages, losses and expenses, including but
not limited to attorney's fees, arising out of or resulting from performance of
the Work, provided that such claim, damage, loss or expense is attributable to
bodily injury, sickness, disease or death, or to injury to or destruction of
tangible property (other than the Work itself) including loss of use resulting
therefrom, but only to the extent caused in whole or in part by negligent acts
or omissions of the Design/Builder or anyone directly or indirectly employed by
the Design/Builder or anyone for whose acts the Design/Builder may be liable,
regardless of whether or not such claim, damage, loss or expense is caused in
part by a party indemnified hereunder. Such obligation shall not be construed to
negate, abridge, or reduce other rights or obligations of indemnity which would
otherwise exist as to a party of person described in this Paragraph 11.5. This
paragraph 11.5.1 shall survive the completion or termination of this Agreement.
<PAGE>

11.5.2    In claims against any person or entity indemnified under this
Paragraph 11.5 by an employee of the Design/Builder, anyone directly or
indirectly employed by the Design/Builder, anyone directly or indirectly
employed by the Design/Builder or anyone for whose acts the Design/Builder may
be liable, the indemnification obligation under this Paragraph 11.5 shall not be
limited by a limitation on amount or type of damages, compensation or benefits
payable by or for the Design/Builder under workers' compensation acts,
disability benefit acts or other employee benefit acts.

11.6      SUCCESSORS AND ASSIGNS

11.6.1    The Owner and Design/Builder, respectively, bind themselves, their
partners, successors, assigns and legal representatives to the other party to
this Part 2 Agreement and to the partners, successors and assigns of such other
party with respect to all covenants of this Part 2 Agreement. Neither the Owner
nor the Design/Builder shall assign this Part 2 Agreement without the written
consent of the other. The Owner may assign this Part 2 Agreement to any
institutional lender providing construction financing, and the Design/Builder
agrees to execute all consents reasonably required to facilitate such an
assignment. If either party makes such an assignment, that party shall
nevertheless remain legally responsible for all obligations under this Part 2
Agreement, unless otherwise agreed by the other party.

11.7      TERMINATION OF PROFESSIONAL DESIGN SERVICES

11.7.1    Prior to termination of the services of the Architect or any other
design professional designated in this Part 2 Agreement, the Design/Builder
shall identify to the Owner in writing another architect or other design
professional with respect to whom the Owner has no reasonable objection, who
will provide the services originally to have been provided by the Architect or
other design professional whose services are being terminated.

11.8      EXTENT OF AGREEMENT

11.8.1    This Part 2 Agreement represents the entire agreement between the
Owner and the Design/Builder and supersedes prior negotiations, representations
or agreements, either written or oral. This Part 2 Agreement may be amended only
by written instrument and signed by both the Owner and the Design/Builder.

                                  ARTICLE 12
                         TERMINATION OF THE AGREEMENT

12.1      TERMINATION BY THE OWNER

12.1.1    This Part 2 Agreement may be terminated by the Owner upon 14 days'
written notice to the Design/Builder in the event that the Project is abandoned.
If such termination occurs, the Owner shall pay the Design/Builder for Work
completed and for proven loss sustained upon materials, equipment, tools, and
construction equipment and machinery, including reasonable profit and applicable
damages. The Design/Builder's obligation as to quality, correction and warranty
of any services performed shall continue in force after termination other than
for default.

12.1.2    If the Design/Builder defaults or persistently fails or neglects to
carry out the Work in accordance with the Contract Documents or fails to perform
the provisions of this Part 2 Agreement, the Owner may give written notice that
the Owner intends to terminate this Part 2 Agreement. If the Design/Builder
fails to correct the defaults, failure or neglect within seven (7) days after
being given notice, the Owner may then give a second written notice and, after
an additional seven (7) days, the Owner may without prejudice to any other
remedy make good such deficiencies
<PAGE>

and may deduct the reasonable cost thereof from the payment due the
Design/Builder or, at the Owner's option, may terminate the employment of the
Design/Builder and take possession of the site and all materials, equipment,
tools and construction equipment and machinery thereon owned by the
Design/Builder and finish the Work by whatever method the Owner may deem
expedient. If the unpaid balance of the Contract Sum exceeds the expense of
finishing the Work and all damages incurred by the Owner, such excess shall be
paid to the Design/Builder. If the expense of completing the Work and all
damages incurred by the Owner exceeds the unpaid balance, the Design/Builder
shall pay the difference to the Owner. This obligation for payment shall survive
termination of this Part 2 Agreement.

12.2      TERMINATION BY THE DESIGN/BUILDER

12.2.1    If the Owner fails to make payment when due, the Design/Builder may
give written notice of the Design/Builder's intention to terminate this Part 2
Agreement. If the Design/Builder fails to receive payment within seven (7) days
after receipt of such notice by the Owner, the Design/Builder may give a second
written notice and, seven (7) days after receipt of such second written notice
by the Owner, may terminate this Part 2 Agreement and recover from the Owner
payment for Work executed and for proven losses sustained upon materials,
equipment, tools, and construction equipment and machinery, including reasonable
profit and applicable damages. Notwithstanding the foregoing the Design/Builder
will not terminate this Agreement or cease its services if the reason for the
Owner's failure to make payment is a good faith dispute over the validity of the
amount alleged to be owed.

12.3      TERMINATION BY EITHER PARTY

12.3.1    Either party may terminate this Agreement without notice if the other
party (i) files a petition under applicable bankruptcy laws for relief from
creditors or the appointment of a receiver for its assets or (ii) is subject to
an involuntary bankruptcy petition which is not discharged within thirty (30)
days.
<PAGE>

                                  ARTICLE 13
                             BASIS OF COMPENSATION

The Owner shall compensate the Design/Builder in accordance with Article 5,
Payments, and the other provisions of this Part 2 Agreement as described below.

13.1      COMPENSATION

13.1.1    For the Design/Builder's performance of the Work, as described in
Paragraph 3.2 and including any other services listed in Article 14 as part of
Basis Services, the Owner shall pay the Design/Builder in current funds the
Contract Sum as follows:

(see "Method of Determining the Contract Sum" attached hereto)

13.1.2    For Additional Services, as described in Paragraph 3.3 and including
any other services listed in Article 14 as Additional Services, compensation
shall be as follows:

13.2      REIMBURSABLE EXPENSES

13.2.1    [deleted]

13.2.2    [deleted]

13.3      INTEREST PAYMENTS

13.3.1    The rate of interest for past due payments shall be as follows:
One and one half (1.5%) percent per month.  (Annual rate of 18%)

(Usury laws and requirements under the Federal Truth in Lending Act, similar
state and local consumer credit laws and other regulations at the Owner's and
Design/Builder's principal places of business, at the location of the Project
and elsewhere may affect the validity of this provision. Specific legal advice
should be obtained with respect to deletion, modification or other requirements,
such as written disclosures or waivers.)

                                  ARTICLE 14
                         OTHER CONDITIONS AND SERVICES

14.1      The Basic Services to be performed shall be commenced on March 20,
2000 and, subject to authorized adjustments and to delays not caused by the
Design/Builder, Substantial Completion shall be achieved in the Contract Time of
(365) calendar days.

14.2      The Basic Services beyond those described in Article 3 are as follows:

14.3      Additional Services beyond those described in Article 3 are as
follows:

14.4      [deleted]
<PAGE>

14.4.1    All representations, warranties, agreements, covenants and obligations
herein or in any schedule, exhibit, certificate or financial statement delivered
by any party to the other party incident to the transactions contemplated hereby
are material, shall be deemed to have been relied upon by the other party and
shall survive termination of this Part 2 Agreement regardless of any
investigation and shall not merge in the performance of any obligation by either
party hereto.
<PAGE>

14.5      The Design/Builder's Proposal includes the following documents:

(List the documents by specific title and date; include any required performance
and payment bonds.)

<TABLE>
<CAPTION>
Title                                                                              Date
<S>                                                                                <C>
002        General Notes                                                           3/1/00
A.101      First Floor Key Plan                                                    3/1/00
A.102      Second Floor Key Plan                                                   3/1/00
A.103      Third Floor Key Plan                                                    3/1/00
A.111      Bldg #1, First Floor Plan                                               3/1/00
A.112      Bldg #1, Second Floor Plan                                              3/1/00
A.113      Bldg #1, Third Floor Plan                                               3/1/00
A.114      Bldg #1, Roof Plan                                                      3/1/00
A.121      Bldg #2, First Floor Plan                                               3/1/00
A.122      Bldg #2, Second Floor Plan                                              3/1/00
A.123      Bldg #2, Third Floor Plan                                               3/1/00
A.124      Bldg #2, Roof Plan                                                      3/1/00
A.201      Exterior Elevations                                                     3/1/00
A.211      Enlarged Elevations                                                     3/1/00
A.212      Enlarged Elevations                                                     3/1/00
A.213      Enlarged Elevations                                                     3/1/00
A.214      Enlarged Elevations                                                     3/1/00
A.231      Enlarged Window Elevations                                              3/1/00
A.232      Enlarged Window Elevations                                              3/1/00
A.301      Bldg #1, Building Sections                                              3/1/00
A.303      Door Types                                                              3/1/00
A.305      Casework, Details                                                       3/1/00
A.306      Casework, Details                                                       3/1/00
A.311      Exterior Wall Sections                                                  3/1/00
A.312      Exterior Wall Sections                                                  3/1/00
A.313      Exterior Wall Sections                                                  3/1/00
A.321      Exterior Wall Sections                                                  3/1/00
A.331      Wall Section Details                                                    3/1/00
A.332      Wall Section Details                                                    3/1/00
A.333      Wall Section Details                                                    3/1/00
A.341      Wall Section Details                                                    3/1/00
A.401      Exterior Plan Details                                                   3/1/00
A.601      Enlarged Area Plans                                                     3/1/00
A.621      Wall Types and Details                                                  3/1/00
A.631      Door and Frame Elevations and Details                                   3/1/00
A.701      Interior Elevations                                                     3/1/00
A.801      Bldg # 1, First Floor Ceiling Plan                                      3/1/00
A.802      Bldg # 1, Second Floor Ceiling Plan                                     3/1/00
A.803      Bldg # 1, Third Floor Ceiling Plan                                      3/1/00
A.811      Bldg # 2, First Floor Ceiling Plan                                      3/1/00
A.812      Bldg # 2, Second Floor Ceiling Plan                                     3/1/00
A.813      Bldg # 2, Third Floor Ceiling Plan                                      3/1/00
</TABLE>
<PAGE>

14.6      Other Conditions:

14.6.1    Change Orders, if any, shall be paid by normal requisitions during the
life of the Contract as if they were included in the original Contract Sum. The
terms of payment shall be the same as in Article 5. The Owner shall provide
Contractor with reasonable evidence of financial arrangements for increase in
contract amount.

14.6.2    Owner warrants to the Contractor that at the time of the signing of
this Agreement, he is the bona fide Owner of the premises on which the
construction work described herein is to done and that such work is not
inconsistent with the applicable zoning laws or private deed or similar
restrictions.

14.6.3    The Owner agrees to hold harmless the Contractor from any liability
regarding any hazardous waste material as defined by the local, state and
federal government which may be found on the project site.

14.6.4    Unless transmitted in writing to the Contractor, all work performed by
the Contractor and all equipment and materials installed assumes no abnormal or
special conditions which would interfere with any warranties or guarantees.

This Agreement entered into as of the day and year first written above.

OWNER                                     DESIGN/BUILDER

/s/ Josef W. Rokus                        /s/ Raymond Aho, President
------------------------------------      -----------------------------------
(signature)                               (Signature)
         JOSEF W. ROKUS, V.P.
IPG Photonics Corporation                 Aho Construction Inc.
(Printed name and title)                  (Printed name and title)
<PAGE>

Attachment to: AIA191-1996 dated 3/10/00                                 5/11/00

Agreement between: IPG Photonics Corporation

                           and

                Aho Construction Inc.

Refer to Article 13.1 Compensation

"Method of Determining the Contract Sum"

Phase 1.        For the shell portion of the construction:

                Aho Construction Inc. to provide final Architectural /
                Structural plans and complete the construction of the shell
                portion of the work for a lump sum price in accordance with the
                attached Worksheet Breakdowns dated 5/11/00 for buildings #1 &
                #2. The Contract Sum for Building # 1 is $2,341,249.00 and the
                Contract Sum for Building # 2 is $2,378,997.00.

Phase 2.        For the fit-up portion of the work: This portion shall be
                completed on a Construction Management basis as follows:
                               -----------------------

                The work will include the complete Design, Engineering, and
                Construction of the Clean Rooms, ESD Flooring, Process
                Plumbing/Piping, Mechanical Systems (including the Hansa
                system), and Electrical Systems for both Building #1 and
                Building #2:

                Aho Construction Inc. shall coordinate and direct the planning,
                design, and construction of this phase of the project. The price
                shall be based on subcontractor and designer quotes obtained by
                Aho Construction Inc. and approved by IPG Photonics Corporation
                for the complete requirement of this phase, plus a lump sum
                management fee of $400,000.00 for overhead and profit. The range
                of pricing at this time is $4,729,000.00 (see attached
                breakdown).

                Incentive for savings in reference to Phase 2:

                At the time a final sum is established, the Owner and Contractor
                shall share equally in any savings realized below the amount of
                $4,700,000.00 for this phase of the work.

Note:           The additional cost for providing a Performance Bond is
                $100,000.00

Revised 5/12/00; J. Rokus<PAGE>

                                                                   Exhibit 10.24

                       SEVENTH AMENDMENT AND MODIFICATION
                         TO LOAN AND SECURITY AGREEMENT

         THIS SEVENTH AMENDMENT AND MODIFICATION TO LOAN AND SECURITY AGREEMENT
(the "Amendment") is made effective as of November 14, 2000 by and among TODAY'S
MAN, INC., a Pennsylvania corporation ("Borrower"); each of the Subsidiaries of
the Borrower identified under the caption "Guarantor" on the signature pages of
this Amendment (individually, a "Guarantor" and, collectively, the
"Guarantors"); each of the financial institutions identified under the caption
"Lenders" on the signature pages of this Amendment (including without limitation
Mellon in such capacity) (individually, a "Lender" and, collectively, the
"Lenders"); and MELLON BANK, N.A., a national banking association, as agent for
the Lenders (in such capacity, together with its successors in such capacity,
the "Agent").

                                   BACKGROUND

         A. Borrower, Guarantors, Lender and Agent previously entered into a
certain Loan and Security Agreement dated December 4, 1998, as amended by (i)
that certain First Amendment and Modification to Loan and Security Agreement
dated April 28, 1999, (ii) that certain Second Amendment and Modification to
Loan and Security Agreement dated October 13, 1999, (iii) that certain Third
Amendment and Modification to Loan and Security Agreement dated March 15, 2000,
(iv) that certain Fourth Amendment and Modification to Loan and Security
Agreement dated May 1, 2000, (v) that certain Fifth Amendment and Modification
to Loan and Security Agreement (the "Fifth Amendment") dated May 11, 2000 (the
"Fifth Amendment"), and (vi) that certain Sixth Amendment and Modification to
Loan and Security Agreement (the "Sixth Amendment") dated August 16, 2000
(collectively, the "Loan Agreement"), pursuant to which, inter alia, Lender
agreed to extend to Borrower a revolving credit facility up to a maximum
outstanding principal amount of Thirty-Five Million Dollars ($35,000,000.00).

         B. Borrowers, Guarantors, Lender and Agent are entering into this
Amendment to amend certain terms and conditions of the Loan Agreement.

         C. Capitalized terms used herein and not otherwise defined herein shall
have the meanings set forth for such terms in the Loan Agreement.

         NOW, THEREFORE, in consideration of the foregoing premises and
intending to be legally bound hereby, the parties hereto agree as follows:

         1. Extension of Permitted Out-Of-Formula Advances and Usage.
Notwithstanding anything to the contrary contained in the Loan Agreement
(including the terms of Section 3 of the Fifth Amendment and Section 4 of the

                                       1
<PAGE>

Sixth Amendment), Borrower may continue to exceed the formula availability
calculated pursuant to Sections 2.1 and 2.3 of the Loan Agreement by an amount
not to exceed (i) $2,500,000.00 for a period commencing on July 16, 2000 and
ending on August 15, 2000, (ii) $4,500,000.00 for a period commencing on

         2. August 16, 2000 and ending on November 30, 2000, (iii) $4,250,000.00
for a period commencing on December 1, 2000 and ending on December 7, 2000, (iv)
$3,500,000.00 for a period commencing on December 8, 2000 and ending on December
14, 2000, (v) $3,000,000.00 for a period commencing on December 15, 2000 and
ending on December 21, 2000, and (vi) $1,500,000.00 for a period commencing on
December 22, 2000 and ending on December 28, 2000. On December 29, 2000, all
Out-Of-Formula Advances must be repaid in full. In no event shall the
outstanding Revolving Credit Facility Usage (including the permitted
Out-Of-Formula Advances described above) exceed (a) $35,000,000.00 at any time
through November 29, 2000, or (b) $30,000,000 at any time after November 29,
2000. For purposes of this Amendment and the Loan Agreement "Out-Of-Formula
Advances" shall be redefined to mean the amount by which the then existing
Revolving Credit Facility Usage exceeds the then applicable Borrowing Base. Upon
the occurrence of a Default or an Event of Default under the Loan Documents, at
the Agent's option, Borrower will repay all Out-Of-Formula Advances.

         3. Confirmation of Collateral. Nothing contained herein shall be deemed
to be a compromise, satisfaction, accord and satisfaction, novation or release
of any of the Loan Documents, or any rights or obligations thereunder, or a
waiver by Agent or any Lender of any of its rights under the Loan Documents or
at law or in equity. All liens, security interest, rights and remedies granted
to Agent or Lenders in Loan Documents are hereby ratified, confirmed and
continued. Borrowers and Guarantors acknowledge and agree that the term "Loan
Documents" as used in the Loan Agreement and any other documents executed in
connection therewith shall include, without limitation, this Amendment and any
and all other documents executed in connection herewith.

         4. Challenge to Enforcement. Borrower and Guarantors acknowledge and
agree that they do not have any defense, set-off, counterclaim or challenge
against the payment of any sums owing under the Loan Documents, or the
enforcement of any of the terms or conditions thereof.

         5. Representation Warranties. Borrower and Guarantors hereby represent
and warrant, which representations and warranties shall survive until all
Obligations are paid and satisfied in full, as follows:

         6. Conditions. The obligation of Agent and Lender to enter into this
Amendment is subject to the following conditions (any of which may be waived by
Agent):

                                       2
<PAGE>

            5.1 Loan Documents. Borrower and Guarantors and all other required
persons and entities will have executed and delivered to Agent this Amendment
and such other documents as Agent may require.

            5.2 Representations and Warranties. All representations and
warranties of Borrower and Guarantors set forth in the Loan Documents are true
at and as of the date hereof.

            5.3 No Default. No condition or event shall exist or have occurred
which would constitute a Default or an Event of Default hereunder.

            5.4 Other Documents. Such other documents as may be required to be
submitted to Agent by the terms hereof or any of the Loan Documents shall have
been delivered by or on behalf of Borrower and Guarantors to Agent.

         6. Additional Documents; Further Assurances. Borrower covenants and
agrees to execute and deliver to Agent, or to cause to be executed and delivered
to Agent contemporaneously herewith, at the sole cost and expense of Borrower,
any and all other documents, agreements, statements, resolutions, certificates,
consents and information as Agent may require in connection with the matters or
actions described herein. Borrower further covenants and agrees to execute and
deliver to Agent or to cause to be executed and delivered at the sole cost and
expense of Borrower, from time to time, any and all other documents, agreements,
statements, certificates and information as Agent shall reasonably request to
evidence or effect the terms hereof, the Loan Agreement, as amended, or any of
the other Loan Documents, or to enforce or to protect Agent's interest in the
Collateral. All such documents, agreements, statements, certificates and
information shall be in form and content acceptable to Agent in its sole
discretion.

         7. Certain Fees, Costs, Expenses and Expenditures. Borrower will pay
all of the Agent's expenses in connection with the review, preparation,
negotiation, documentation and closing of this Amendment and the consummation of
the transactions contemplated hereunder, including without limitation, costs and
fees and expenses of counsel retained by Agent and all fees related to filings,
recording of documents and searches, whether or not the transactions
contemplated hereunder are consummated. Nothing contained herein shall limit in
any manner whatsoever any Lender's or Agent's right to reimbursement under any
of the Loan Documents.

         8. Communications and Notices. All notices, requests and other
communications made or given in connection with this Amendment shall be made in
accordance with the provisions of the Loan Agreement.

         9. Time of Essence. Time is of the essence of this Amendment.

                                       3
<PAGE>
         10. No Waiver. Except as otherwise provided herein, nothing contained
and no actions taken by Agent in connection herewith shall constitute nor shall
they be deemed to be a waiver, release or amendment of or to any rights,
remedies, or privileges afforded to Agent under the Loan Documents or under the
UCC. Nothing herein shall constitute a waiver by Agent of Borrower's or any
Guarantor's compliance with the terms of the Loan Documents, nor shall anything
contained herein constitute an agreement by Agent to enter into any further
amendments with Borrower and Guarantors.

         11. Inconsistencies. To the extent of any inconsistencies between the
terms and conditions of this Amendment and the terms and conditions of the Loan
Documents, the terms and conditions of this Amendment shall prevail. All terms
and conditions of the Loan Documents not inconsistent herewith shall remain in
full force and effect and are hereby ratified and confirmed by Borrower and
Guarantors.

         12. Binding Effect. This Amendment and all rights and powers granted
hereby will bind and inure to the benefit of the parties hereto and their
respective permitted successors and assigns.

         13. Severability. The provisions of this Amendment and all other Loan
Documents are deemed to be severable, and the invalidity or unenforceability of
any provision shall not affect or impair the remaining provisions which shall
continue in full force and effect.

         14. No Third Party Beneficiaries. The rights and benefits of this
Amendment and the Loan Documents shall not inure to the benefit of any third
party.

         15. Modifications. No modifications of this Amendment or any of the
Loan Documents shall be binding or enforceable unless in writing and signed by
or on behalf of the party against whom enforcement is sought.

         16. Holidays. If the day provided herein for the payment of any amount
or the taking of any action falls on a Saturday, Sunday or public holiday at the
place for payment or action, then the due date for such payment or action will
be the next succeeding Business Day.

         17. Law Governing. This Amendment has been made, executed and delivered
in the Commonwealth of Pennsylvania and will be construed in accordance with and
governed by the laws of such Commonwealth, without regard to any rules or
principles regarding conflicts of law or any rule or canon of construction which
interprets agreements against the draftsman.

         18. Headings. The headings of the Articles, Sections, paragraphs and
clauses of this Amendment are inserted for convenience only and shall not be
deemed to constitute a part of this Amendment.

                                       4
<PAGE>
         19. Counterparts; Facsimile Signatures. This Amendment may be executed
in any number of counterparts, all of which taken together constitute one and
the same instrument, and any of the parties hereto may execute this Amendment by
signing any such counterpart. Any signature delivered via facsimile shall be
deemed an original signature hereto.

         20. Joint and Several. The obligations of Borrower and Guarantors under
this Amendment shall be joint and several obligations.

         21. Waiver of Right to Trial by Jury. BORROWER, GUARANTORS AND THE
LENDER GROUP WAIVE ANY RIGHT TO TRIAL BY JURY ON ANY CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION (a) ARISING UNDER THIS AMENDMENT, (b) ARISING UNDER ANY OF THE
OTHER LOAN DOCUMENTS OR (c) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL
TO THE DEALINGS OF BORROWER, GUARANTORS OR ANY MEMBER OF THE LENDER GROUP WITH
RESPECT TO THIS AMENDMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS
RELATED HERETO OR THERETO, IN EACH CASE WHETHER SOUNDING IN CONTRACT OR TORT OR
OTHERWISE. BORROWER, GUARANTORS AND THE LENDER GROUP AGREE AND CONSENT THAT ANY
SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
WITHOUT A JURY, AND THAT ANY PARTY TO THIS AMENDMENT MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE
CONSENT OF BORROWER, GUARANTORS AND THE LENDER GROUP TO THE WAIVER OF THEIR
RIGHT TO TRIAL BY JURY. BORROWER AND GUARANTORS ACKNOWLEDGE THAT THEY HAVE HAD
THE OPPORTUNITY TO CONSULT WITH COUNSEL REGARDING THIS SECTION, THAT THEY FULLY
UNDERSTAND ITS TERMS, CONTENT AND EFFECT, AND THAT THEY VOLUNTARILY AND
KNOWINGLY AGREE TO THE TERMS OF THIS SECTION.

                                       5
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.
<TABLE>
<S>                                       <C>

                                         BORROWER:
                                         ---------

                                         TODAY'S MAN, INC., a Pennsylvania corporation

                                         By: /s/Frank E. Johnson
                                             ------------------------------------------
[CORPORATE SEAL]                             Frank E. Johnson, Executive Vice President
                                             & Chief Financial Officer

                                         GUARANTORS:
                                         ----------

                                         BENMOL, INC., a Delaware corporation

[CORPORATE SEAL]
                                         By: /s/Frank E. Johnson
                                             ------------------------------------------
                                             Frank E. Johnson, President

                                         D&L, INC., a Delaware corporation

                                         By: /s/Frank E. Johnson
                                             ------------------------------------------
[CORPORATE SEAL]                             Frank E. Johnson, President

                                         FELD & FELD, INC., a Delaware corporation

                                         By: /s/Frank E. Johnson
                                             ------------------------------------------
[CORPORATE SEAL]                             Frank E. Johnson, President

</TABLE>

                       (SIGNATURES CONTINUED ON NEXT PAGE)

                                       6

<PAGE>
                    (SIGNATURES CONTINUED FROM PREVIOUS PAGE)

                                         LENDERS:
                                         -------

                                         MELLON BANK, N.A.

                                         By: /s/Daniel K. Clancy
                                             --------------------------------
                                             Daniel K. Clancy, Vice President

                                         AGENT:
                                         ------

                                         MELLON BANK, N.A.

                                         By: /s/Daniel K. Clancy
                                             --------------------------------
                                             Daniel K. Clancy, Vice President

                                       7

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