Document:

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                                                                   Exhibit 10.46

                           DATE OF LEASE EXECUTION:

1.   REFERENCE DATA

1.1  SUBJECTS REFERRED TO:

Each reference in this Lease to any of the following subjects shall be construed
to incorporate the data stated for that subject in this Section 1.1:

LANDLORD:           BRE/CambridgePark Office H L.L.C., a Delaware limited
                    liability company

MANAGING AGENT:     Spaulding and Slye Services Limited Partnership

LANDLORD'S & MANAGING AGENT'S ADDRESS:

                    Spaulding and Slye Services Limited Partnership
                    125 CambridgePark Drive
                    Cambridge, MA 02140

LANDLORD'S REPRESENTATIVE: John M. Kane

TENANT:   Prime Response Group, Inc., a Delaware corporation.

TENANT'S ADDRESS (FOR NOTICE AND BILLING):

                       Prime Response Group, Inc.
                       150 CambridgePark Drive
                       Cambridge, Massachusetts 02140

TENANT'S REPRESENTATIVE: Jacqueline Crowley

BUILDING: The building located at 150 CambridgePark Drive, Cambridge,
          Massachusetts.

LOT:  The parcel of land on which the Building is located and described in
      Exhibit A.

PREMISES: The space located on the first floor of the Building as shown on
          Exhibit B.

RENTABLE FLOOR AREA OF THE PREMISES:  Approximately 4,705 square feet

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TOTAL RENTABLE FLOOR AREA OF THE BUILDING:   approximately 252,180 square feet

SCHEDULED TERM COMMENCEMENT DATE:  June 1, 1999

LEASE TERM OR TERM: Commencing on the Term Commencement Date as defined in
                    Section 3.2 hereof and continuing for five (5) years
                    thereafter, plus the partial month at the beginning of the
                    Term, if any, unless sooner terminated as provided herein

ANNUAL RENT:   $36.50 per square foot of Rentable Floor Area of the Premises, or
               $14,311.04 per calendar month, and proportionally at such rate
               for any partial month (net of Tenant's charges for electrical
               consumption in the Premises).

BASE ANNUAL ELECTRICITY CHARGE:    $1.00 per square foot of Rentable Floor
                                   Area of the Premises

BASE ANNUAL OPERATING COSTS:       All of Landlord's Operating Costs (other than
                                   real estate taxes) for calendar year 1999
                                   (i.e., January 1, 1999 through December 31,
                                   1999), together with all real estate taxes
                                   for fiscal year 2000 (i.e., July 1, 1999
                                   through June 30, 2000).

TENANT'S PROPORTIONATE SHARE:  1.87%

PERMITTED USES:  Office Uses

COMMERCIAL GENERAL LIABILITY INSURANCE:

               $1,000,000 bodily injury, property damage combined single
               limit per occurrence, $2,000,000 annual aggregate.

BROKER:  Spaulding and Slye Services Limited Partnership and Godino & Company

SECURITY DEPOSIT:  $42,933.12

TENANT'S PARKING ACCESS CARDS: 14

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TENANT IMPROVEMENT ALLOWANCE:       $12.00 per square foot of Rentable Floor
                                    Area of the Premises

1.2  EXHIBITS.

     The exhibits listed below in this section are incorporated in this Lease by
reference and are to be construed as part of this Lease:

     EXHIBIT A      Description of Lot

     EXHIBIT B      Plan showing Premises.

     EXHIBIT C      Landlord's Services

     EXHIBIT D      Rules and Regulations

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                               TABLE OF CONTENT'S
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                                                                          Page
<C>       <S>                                                              <C>
ARTICLE  II - PREMISES AND TERM......................................      11
     2.1  DESCRIPTION OF PREMISES....................................      11
     2.2  TERM.......................................................      11
     2.3  OPTION TO EXTEND...........................................      11

ARTICLE  III - CONSTRUCTION..........................................      13
     3.1  TERM COMMENCEMENT DATE.....................................      13
     3.2  DELIVERY OF PREMISES.......................................      13
     3.3  PREPARATION OF PREMISES FOR OCCUPANCY......................      14
     3.4  GENERAL PROVISIONS APPLICABLE TO CONSTRUCTION..............      15
     3.5  ALTERATIONS AND ADDITIONS..................................      15
     3.6  REPRESENTATIVES............................................      17

ARTICLE  IV - RENT...................................................      17
     4.1  ANNUAL RENT................................................      17
     4.2  ANNUAL OPERATING COST ESCALATION...........................      17
     4.3  ESTIMATED ANNUAL OPERATING EXPENSE ESCALATION PAYMENT......      19
     4.4  ELECTRICITY................................................      20
     4.5  CHANGE OF FISCAL YEAR......................................      21
     4.6  PAYMENTS...................................................      21

ARTICLE  V - LANDLORD'S COVENANTS....................................      22
     5.1  LANDLORD'S COVENANTS DURING THE TERM.......................      22
          5.1.1     Building Services................................      22
          5.1.2     Additional Building Services.....................      22
          5.1.3     Repairs..........................................      22
          5.1.4     Tenant Directory.................................      22
          5.1.5     Food Service.....................................      23
          5.1.6     Quiet Enjoyment..................................      24
     5.2  INTERRUPTIONS..............................................      24

ARTICLE  VI - TENANT'S COVENANTS.....................................      25
     6.1  TENANT'S COVENANTS DURING THE TERM.........................      25
          6.1.1     Tenant's Payments................................      25
          6.1.2     Repairs and Yielding Up..........................      25
          6.1.3     Occupancy and Use................................      25
          6.1.4     Rules and Regulations............................      26
          6.1.5     Safety Appliances................................      27
          6.1.6     Assignment and Subletting........................      27
</TABLE>

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<TABLE>
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                                                                          Page
<C>      <S>                                                              <C>
          6.1.7     Indemnity........................................      28
          6.1.8     Tenant's Insurance...............................      29
          6.1.9     Tenant's Worker's Compensation Insurance.........      30
          6.1.10    Landlord's Right of Entry........................      30
          6.1.11    Loading..........................................      30
          6.1.12    Landlord's Costs.................................      30
          6.1.13    Tenant's Property................................      31
          6.1.14    Labor or Materialmen's Liens.....................      31
          6.1.15    Changes or Additions.............................      31
          6.1.16    Holdover.........................................      31
          6.1.17    Security.........................................      32
          6.1.18    Tenant Financial Statements......................      32

ARTICLE  VII - DAMAGE AND DESTRUCTION; CONDEMNATION..................      32
          7.1  FIRE OR OTHER CASUALTY................................      32
          7.2  EMINENT DOMAIN........................................      34

ARTICLE  VIII - RIGHTS OF MORTGAGEE..................................      36
          8.1  PRIORITY OF LEASE.....................................      36
          8.2  RIGHTS OF MORTGAGE HOLDERS; LIMITATION OF
               MORTGAGEE'S LIABILITY.................................      36
          8.3  MORTGAGEE'S ELECTION..................................      37
          8.4  NO PREPAYMENT OR MODIFICATION, ETC....................      37
          8.5  NO RELEASE OR TERMINATION.............................      38
          8.6  CONTINUING OFFER......................................      38
          8.7  MORTGAGEE'S APPROVAL..................................      38

ARTICLE  IX - DEFAULT................................................      39
          9.1  EVENTS OF DEFAULT.....................................      39
          9.2  TENANT'S OBLIGATIONS AFTER TERMINATION................      40

ARTICLE  X - MISCELLANEOUS...........................................      41
         10.1  NOTICE OF LEASE.......................................      41
         10.2  RELOCATION............................................      42
         10.3  NOTICES FROM ONE PARTY TO THE OTHER...................      42
         10.4  BIND AND INURE........................................      42
         10.5  NO SURRENDER..........................................      43
         10.6  NO WAIVER, ETC........................................      43
         10.7  NO ACCORD AND SATISFACTION............................      43
         10.8  CUMULATIVE REMEDIES...................................      44
         10.9  LANDLORD'S RIGHT TO CURE..............................      44
         10.10 ESTOPPEL CERTIFICATE..................................      44
         10.11 WAIVER OF SUBROGATION.................................      45
         10.12 ACTS OF GOD...........................................      45
</TABLE>

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<C>      <S>                                                              <C>
         10.13 BROKERAGE.............................................      45
         10.14 SUBMISSION NOT AN OFFER...............................      46
         10.15 APPLICABLE LAW AND CONSTRUCTION.......................      46
         10.16 AUTHORITY OF TENANT...................................      47

ARTICLE  XI - SECURITY DEPOSIT.......................................      47
</TABLE>

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ARTICLE  II    PREMISES AND TERM

2.1  DESCRIPTION OF PREMISES.

     Subject to and with the benefit of the provisions of this Lease, Landlord
hereby leases to Tenant, and Tenant leases from Landlord, Tenant's Space in the
Building, excluding exterior faces of exterior walls, the common facilities area
and building service fixtures and equipment serving exclusively or in common
other parts of the Building.  Tenant's Space, with such exclusions, is
hereinafter referred to as the Premises.

     Tenant shall have, as appurtenant to the Premises, the right to use in
common with others entitled thereto: (a) common walkways, driveways, hallways,
lobbies, ramps, loading docks and stairways located in the Building or on the
parcel on which the Building is located (the "Lot"), (b) building service
fixtures and equipment serving the Premises including elevators, (c) the parking
facility, if any, on a first-come, first-served basis in the location from time
to time designated by Landlord, Tenant's use not to exceed the number of
Tenant's Parking Access Cards, and (d) if the Premises include less than the
entire Rentable Floor Area of any floor, the common toilets in the central core
area of such floor.  Such rights shall be always subject to the Rules and
Regulations set forth in Exhibit D, attached hereto and incorporated herein by
reference, as the same may be amended by the Landlord from time to time and such
other reasonable Rules and Regulations from time to time established by the
Landlord by suitable notice to Tenant, and to the right of the Landlord to
designate and change from time to time such areas, facilities, fixtures and
equipment.

 2.2 TERM.

     To have and to hold for a period (the "Term") commencing on the Term
Commencement Date (as defined in Section 3.1 hereof) and continuing for the
Term, unless sooner terminated as provided herein.

 2.3 OPTION TO EXTEND.

     Tenant shall have the right and option to extend the Term for one (1)
additional period of five (5) years (the "Extension Term") commencing upon the
expiration of the original Term referred to in Section 1.1 (the "Original
Term"), provided that Tenant shall give Landlord notice of Tenant's exercise of
such option at least nine (9) months prior to the expiration of the Original
Term and provided further that no event of default by Tenant exists hereunder,
and no condition exists which with the giving of notice or the passage of time,
or both, would constitute an event of default

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hereunder, at either the time of giving such notice or at the time of the
commencement of such Extension Term. Prior to the exercise by Tenant of such
option, the expression "Term" shall mean the Original Term, and after the
exercise by Tenant of such option, the expression "Term" shall mean the Original
Term as it has been extended by the Extension Term. Except as expressly
otherwise provided in the following paragraph and except for this Section 2.3
hereof, all the terms, covenants, conditions, provisions and agreements in the
Lease contained shall be applicable to the Extension Term. If Tenant shall give
notice of its exercise of said option to extend in the manner and within the
time period provided aforesaid, the Term shall be extended upon the giving of
such notice without the requirement of any further action on the part of either
Landlord or Tenant. If Tenant shall fail to give timely notice of the exercise
of any such option as aforesaid, Tenant shall have no right to extend the Term
of this Lease, time being of the essence of the foregoing provisions.

     The Annual Base Rent payable during the Extension Term shall be the amount
being the greater of (i) the Annual Base Rent in effect for the Lease Year
immediately preceding the commencement of the Extension Term or (ii) the Fair
Market Rent for the Premises, as determined below, as of the commencement of the
Extension Term.  If for any reason the Annual Base Rent payable during the
Extension Term has not been determined as of the commencement of the Extension
Term, Tenant shall pay the Annual Base Rent payable during the Original Term
until the Annual Base Rent for the Extension Term is determined, at which time,
an appropriate adjustment, if any, shall be made.

     For purposes here, the Fair Market Rent shall mean the fair rent for the
Premises as of the commencement of the Extension Term under market conditions
then existing. Fair Market Rent shall be determined by agreement between
Landlord and Tenant, but if Landlord and Tenant are unable to agree upon the
Fair Market Rent at least six (6) months prior to the date upon which the Fair
Market Rent is to take effect, then the Fair Market Rent shall be determined by
appraisal made as hereinafter provided by a board of three (3) reputable
independent commercial real estate consultants, appraisers, or brokers, each of
whom shall have at least ten years of experience in the north suburban Boston
office rental market and each of whom is hereinafter referred to as "appraiser".
Tenant and Landlord shall each appoint one such appraiser and the two appraisers
so appointed shall appoint the third appraiser.  The cost and expenses of each
appraiser appointed separately by Tenant and Landlord shall be borne by the
party who appointed the appraiser.  The cost and expenses of the third appraiser
shall be shared equally by Tenant and Landlord.  Landlord and Tenant shall
appoint their respective appraisers at lease five (5) months

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prior to commencement of the period for which Fair Market Rent is to be
determined and shall designate the appraisers so appointed by notice to the
other party. The two (2) appraisers so appointed and designated shall appoint
the third appraiser at lease four (4) months prior to the commencement of such
period and shall designate such appraisers by notice to Landlord and Tenant. The
board of three (3) appraisers shall determine the Fair Market Rent of the space
in question as of the commencement of the period to which the Fair Market Rent
shall apply and shall notify Landlord and Tenant of their determinations at
least sixty (60) days prior to the commencement of such period. If the
determinations of the Fair Market Rent of any two (2) or all three (3)
appraisers shall be identical in amount, said amount shall be deemed to be the
Fair Market Rent of the subject space. If the determinations of all three (3)
appraisers shall be different in the amount, the average of the two values
nearest in amount shall be deemed the Fair Market Rent. The Fair Market Rent of
the subject space determined in accordance with the provisions of this Section
shall be binding and conclusive on Tenant and Landlord.

     Time is of the essence of the foregoing provisions.

ARTICLE  III   CONSTRUCTION

 3.1 TERM COMMENCEMENT DATE.

     The Term of this Lease shall commence on, and the Term Commencement Date
shall be, the Scheduled Term Commencement Date if Landlord is not obligated to
do Landlord's Work hereunder or, if Landlord is so obligated, the earlier of (a)
the date on which the premises shall be deemed ready for occupancy in accordance
with Section 3.3.  below; or (b) the date on which Tenant commences beneficial
use of the Premises. Tenant shall, in all events, be treated as having commenced
beneficial use of the Premises when it begins to move into the Premises
furniture and equipment for its regular business operations.

     As soon as may be convenient after the Term Commencement Date has been
determined, Landlord and Tenant agree to join with each other in the execution,
in recordable form, of a written Declaration in which the Term Commencement Date
and specified term of this Lease shall be stated.

 3.2 DELIVERY OF PREMISES.

     Tenant acknowledges that Tenant has had an opportunity to inspect the
Premises.  Except as set forth hereinafter, the Premises, shall be delivered to
Tenant As Is, Where Is with all faults and without

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representation, warranty or guaranty of any kind by Landlord to Tenant. Landlord
agrees to give Tenant, its architect, the Contractor (as defined below), and
subcontractors reasonable access to the Premises to permit Tenant to prepare
drawings and obtain permits and approvals with respect to Tenant's Work (as
defined below). Tenant's access to and use and occupancy of the Premises prior
to the Term Commencement Date shall be subject to all of the provisions of this
Lease, other than the payment of Annual Rent and electricity changes.

 3.3 PREPARATION OF PREMISES FOR OCCUPANCY.

     Subject to the provisions hereof, Tenant shall undertake all work to
prepare the Premises for Tenant's use and occupancy in accordance with Plans
approved as set forth below ("Tenant's Work") at Tenant's sole cost and expense,
except that Landlord shall reimburse Tenant in an amount not to exceed the
Tenant Improvement Allowance.  Provided that Tenant is not then in default under
any provision of this Lease or, if Tenant is in default, that Tenant cures the
same within the applicable cure period, if any, the Tenant Improvement Allowance
shall be payable by Landlord to Tenant to reimburse Tenant for architectural
fees payable to Tenant's architect, Design Science (the "Architect"), upon
notice to Tenant accompanied by the Architect's invoice therefor and to pay the
Contractor (as defined hereinafter) directly upon notice to Landlord from time
to time, accompanied by invoices from the Contractor which have been approved by
the Architect.  After the entire amount of the Tenant Improvement Allowance has
been paid out by Landlord, Tenant shall bear all additional costs to complete
Tenant's Work at Tenant's sole cost and expense.  If any portion of the Tenant
Improvement Allowance remains after the completion of Tenant's Work, it shall
not be payable or credited to Tenant in any manner whatsoever.  Tenant shall
retain Spaulding and Slye Construction Company (the "Contractor") to serve as
Tenant's general contractor.  It is understood and agreed that the actions or
inactions of the Contractor shall in no way be attributable to the Landlord, and
that Landlord has no responsibility for the completion of Tenant's Work.

     For purposes hereof, Tenant shall submit a complete set of proposed plans
and specifications (collectively, "Plans") showing Tenant's Work to Landlord.
No later than five (5) business days thereafter, Landlord shall either approve
or disapprove the Plans, specifying by notice to Tenant in reasonable detail the
respects in which the Plans are disapproved.  If Landlord disapproves the Plans,
Tenant shall submit to Landlord revised Plans which respond to the items of
disapproval specified in Landlord's notice no later than five (5) days from
Landlord's notice of disapproval. Thereafter, Landlord shall have five (5) days
from Tenant's submission of the

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Plans to Landlord to approve or disapprove the revised Plans in accordance with
the foregoing and, in case of disapproval, Tenant shall have an additional five
(5) days to submit revised Plans responding to the items of disapproval
specified in Landlord's notices. The parties shall work diligently and in good
faith to agree upon approved Plans.

     Landlord will not approve any construction, alterations, or additions
requiring unusual expense to readapt the Premises to normal office use on lease
termination or increasing the cost of construction, insurance or taxes on the
Building or of Landlord's services called for by Section 5.1 unless Tenant first
gives assurances acceptable to Landlord that such readaptation will be made
prior to such termination without expense to Landlord and makes provisions
acceptable to Landlord for payment of such increased cost.  Landlord will also
disapprove any alterations or additions requested by Tenant which will delay
completion of the Premises.  Tenant's construction, installation of furnishings,
and later changes or additions shall be coordinated with any work being
performed by Landlord in such manner as to maintain harmonious labor relations
and not to damage the Building or Lot or interfere with Building operations.

 3.4 GENERAL PROVISIONS APPLICABLE TO CONSTRUCTION.

     All construction work required or permitted by this Lease, whether by
Landlord or by Tenant, shall be done in a good and workmanlike manner and in
compliance with all applicable laws and all lawful ordinances, regulations and
orders of governmental authority and insurers of the Building and the Lot.
Either party may inspect the work of the other at reasonable times and promptly
shall give notice of observed defects.  Landlord's obligations under Sections
3.2 and 3.3, if any, shall be deemed to have been performed when Tenant
commences to occupy any portion of the Premises for the Permitted Uses except
for items which are incomplete or do not conform with the requirements of
Section 3.1 and as to which Tenant shall in either case have given written
notice to Landlord within three (3) weeks after such commencement.  Tenant
acknowledges that the Building may be undergoing substantial renovation during
the Term of the Lease.  Tenant acknowledges that its quiet enjoyment and access
to the Demised Premises during the Term may be disturbed by the noise, dust,
vibrations and other effects of demolition in the Building, provided, however,
that Landlord shall use reasonable efforts to avoid undue interference with
Tenant's use of the Premises.

 3.5 ALTERATIONS AND ADDITIONS.

     This Section 3.5 shall apply before and during the Term.  Tenant shall not
make any alterations and additions to the Premises except in accordance with
plans and specifications first approved by Landlord.  In no event shall any
alterations or additions be considered or approved by Landlord which (a) involve
or might affect any structural or exterior element of the Building or building
mechanical, electrical or plumbing systems, including the common facilities of
the Building, or (b) will require unusual expense to readapt the Premises to
normal office use on Lease termination or increase the cost of construction or
of insurance or taxes on the Building or the Lot.  All alterations and additions
shall become a part of the Premises, unless and until Landlord, at its option,
shall specify the same for removal pursuant to Section 6.1.2. All of Tenant's
alterations and additions and installation and delivery of telephone systems,
furnishings, and equipment shall be coordinated with any work being performed by
Landlord and shall be performed in such manner, and by such persons as shall
maintain harmonious labor relations and not cause any damage to the Building or
interference with Building construction or operation and, except for
installation of furnishings, equipment and telephone systems, and except as
otherwise expressly set forth herein, shall be performed by general contractors
first approved by Landlord. Before commencing any work Tenant shall: secure all
licenses and permits necessary therefor; deliver to Landlord a statement of the
names of all its contractors and subcontractors (the identity of which must have
been previously approved by Landlord as hereinabove contemplated) and the
estimated cost of all labor and material to be furnished by them; and cause each
contractor to carry (i) worker's compensation insurance in statutory amounts
covering an the contractor's and subcontractor's employees and (ii)
comprehensive public liability insurance with such limits as Landlord may
reasonably require, but in no event less than a combined single limit of
$1,500,000 (all such insurance to be written in companies approved by Landlord
and insuring Landlord and Tenant as well as the contractors), and to deliver to
Landlord certificates of all such insurance.  Tenant agrees to pay promptly when
due, and to defend and indemnify Landlord from and against, the entire cost of
any work done on the Premises by Tenant, its agents, employees or independent
contractors, and not to cause or permit any liens for labor or materials
performed or furnished in connection therewith to attach to the Building or the
Lot and immediately to discharge any such liens which may so attach.  Tenant
shall pay within fourteen (14) days after being billed therefor by Landlord, as
additional rent, one hundred percent (100%) of any increase in real estate taxes
on the Premises not otherwise billed to Tenant which shall, at any time after
the commencement of the Term, result from any alteration, addition or
improvement to the Premises made by or on behalf of Tenant.

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     In connection with the installation of telecommunication equipment by
Tenant, such installation shall occur only in such locations and in such a
manner as approved in writing by the Landlord and none of such wires, ducts or
equipment shall be located in areas outside the Premises (provided, however,
that Tenant may install wires and cables in risers and ducts outside the
Premises which are in existence on the date of this Lease and for which there
exists, in Landlord's sole discretion, adequate space for Tenant's wires and
cables).  Telephone switches, antennae, electronic distribution boxes and
similar equipment shall only be located within the Premises.  Landlord shall not
be liable for any loss, damage or interruption of service related to such
facilities.

 3.6 REPRESENTATIVES.

     Each party authorizes the other to rely in connection with their respective
rights and obligations under this Article III upon approval and other actions on
the party's behalf by Landlord's Representative in the case of Landlord or
Tenant's Representative in the case of Tenant or by any person designated in
substitution or addition by notice to the other party.

ARTICLE  IV    RENT

 4.1 ANNUAL RENT.

     Tenant agrees to pay rent to Landlord without any offset or reduction
whatever (except as made in accordance with the express provisions of this
Lease), the Annual Rent in equal monthly installments in advance on the first
day of each calendar month included in the Term after the Term Commencement
Date; and for any portion of a calendar month at the beginning or end of the
Term, at the proportionate rate payable for such portion, in advance.

 4.2 ANNUAL OPERATING COST ESCALATION.

     In addition to Annual Rent, Tenant shall pay to Landlord as additional
rent, Tenant's Proportionate Share of Annual Operating Costs (as hereinafter
defined) which is in excess of Base Annual Operating Costs ("Tenant's Escalation
Payment").  Tenant's Proportionate Share of Annual Operating Costs shall be
determined by multiplying Annual Operating Costs by a fraction, the numerator of
which is the Rentable Floor Area of the Premises and the denominator of which is
the Total Rentable Floor Area of the Building.  In the event that the Building
is not fully occupied, such Annual Operating Costs shall be adjusted to reflect
the costs which would be incurred if the Building were 95% occupied.

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     Annual Operating Costs shall mean the actual expenses paid or incurred by
Landlord in the operation, maintenance and management of the Building and Lot
and all real estate taxes and assessments, general or special, ordinary or
extraordinary, foreseen or unforeseen, imposed upon the Building and Lot and any
future improvement of whatever kind thereto or thereon.  Annual Operating Costs
shall include without limitation:

4.20.1 (a) real estate taxes on the Building and Lot and off-site parking areas;
       (b) installments and interest on assessments for public betterment or
       public improvements; (c) expenses of any proceedings for abatement of
       taxes and assessments with respect to any fiscal year or fraction of a
       fiscal year; (d) service, repair, replacement and other maintenance to
       the Building and Lot and components thereof; (e) wages and salaries (and
       taxes and other charges imposed upon employers with respect to such wages
       and salaries) and fringe benefits and worker's compensation insurance
       premiums paid to persons employed by the Landlord for rendering service
       in the operation, maintenance, and repair of the Building and Lot and
       related facilities and off-site parking areas and amenities; (f) cost of
       independent contractors hired for the operation, maintenance and repair
       of the Building and Lot and related facilities and amenities (which
       payments may be to affiliates of Landlord provided the same are at
       reasonable rates consistent with the type of occupancy and the services
       rendered); (g) costs of electricity, steam, water, fuel, heating,
       lighting, air conditioning, sewer, and other utilities chargeable to the
       operation and maintenance of the Building and Lot net of tenant's
       electric; (h) cost of insurance including insurance deductible for and
       relating to the Building and the Lot, including fire and extended
       coverage (or such greater coverages as Landlord may elect to carry),
       elevator, boiler, sprinkler leakage, water damage, public liability and
       property damage, plate glass, and rent protection; (i) costs of supplies;
       (j) costs of window cleaning, janitorial services, security services,
       landscaping, snow and ice removal and painting; (k) sales or use taxes on
       supplies and services; (l) consulting, accounting fees, legal, tax
       appeal, engineering and other professional fees and expenses; (m)
       management fees; (n) contributions, costs or expenses related to common
       areas or facilities and off-site parking areas of any office park or
       development of which the Building or Lot are a part, (o) alterations and
       improvements to the Building and Lot which are not capital in nature made
       by reason of any requirement of any insurance underwriters

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     or any federal, state, or local statutes, regulations, ordinances, or any
     other duly constituted public authorities having jurisdiction over the
     Building and Lot; and (p) all Expense of Operation of the Food Services as
     defined in section 5.1.5 and (q) without limiting any of the foregoing, any
     other expense or charge which, in accordance with sound accounting and
     management principles generally accepted, would be construed as an
     operating expense. The term Operating Costs shall not include the interest
     and amortization on mortgages for the Building and Lot or leasehold
     interests therein; any charge for depreciation; leasing commissions or
     legal fees for the negotiation and enforcement of leases; and the cost of
     special services rendered to tenants (including Tenant) for which a special
     charge is made.

     In the event Landlord shall make a capital expenditure for Essential
Capital Improvements, as hereinafter defined, during any year, the annual
amortization of such expenditure (determined by dividing the amount of the
expenditure by the useful life of the improvement, as determined by Landlord),
together with interest at the greater of the Prime Rate prevailing plus 2% or
Landlord's actual borrowing rate for such Essential Capital Improvements shall
be deemed part of Annual Operating Costs for each year of such useful life.  As
used herein, "Essential Capital Improvement" means any of the following:

4.2.0.1.1     a labor saving device, energy saving device or other
              installation, improvement or replacement which reduces
              Operating Costs as referred to above, whether or not voluntary
              or required by governmental mandate; or

4.2.0.1.2     an installation, change, improvement, addition, alteration, or
              removal of any architectural barriers, whether or not the
              foregoing are structural in nature, made by reason of any
              governmental requirement whether or not such governmental
              requirement exists on the date of the execution of this Lease
              if such governmental requirement is or will be applicable
              generally to similar office buildings; or

4.2.0.1.3     an installation or improvement which directly enhances the
              health or safety of tenants in the Building generally, whether
              or not voluntary or required by governmental

                                       14
<PAGE>

             mandate (as for example, without limitation, for life safety or
             security).

4.2.0.1.4    costs or expenditures incurred in replacing compressors and
             refrigeration equipment in order to comply with regulations
             regarding ozone depleting refrigerants or resulting from the
             excessive cost of or inability to obtain such materials.

 4.3 ESTIMATED ANNUAL OPERATING EXPENSE ESCALATION PAYMENT.

     If, with respect to any fiscal year or fraction thereof during the Term,
Landlord estimates that Tenant will be obligated to pay Tenant's Escalation
Payment, then Tenant shall pay, as additional rent, on the first day of each
month of such fiscal year and each ensuing fiscal year thereafter, an estimate
equal to 1/12th of Tenant's Escalation Payment for the respective fiscal year
("Estimated Monthly Operating Expense Cost Payments"), with an appropriate
additional payment or refund to be made within 30 days after Landlord's
Statement (as hereafter defined) is delivered to Tenant.  Landlord may adjust
such Estimated Monthly Annual Operating Cost Payment from time to time and at
any time during a fiscal year, and Tenant shall pay, as additional rent, on the
first day of each month following receipt of Landlord's notice thereof, the
adjusted Estimated Monthly Annual Operating Cost Payment.

     As soon as practicable after the end of each fiscal year ending during the
Term and after lease termination, Landlord shall render a statement ("Landlord's
Statement") in reasonable detail and according to usual accounting practices
certified by Landlord and showing for the preceding fiscal year or fraction
thereof, as the case may be, Landlord's Annual Operating Costs, Tenant's
Proportionate Share thereof, and Tenant's Escalation Payment, as defined above.

 4.4 ELECTRICITY.

     Tenant will be billed for electricity for Tenant's lights and outlet
consumption on a monthly basis based on an annual estimate of $1.00 per rentable
square foot.  Should the actual average expense to Landlord per square foot for
Tenant's electricity be different, an additional charge or a credit will be made
at the end of each year's occupancy to be paid with or credited against the next
monthly charge for Tenant's electricity.  Notwithstanding the foregoing,
Landlord reserves the right to assess Tenant's charge for electricity based on
an engineer's survey of Tenant's electrical usage conducted from time to time or
on the sub-metering of

                                       15
<PAGE>

all or part of the Premises. Such charges for Tenant's electricity shall be paid
by Tenant as additional rent at the same time and in the same manner as payments
of Annual Rent.

     Tenant covenants and agrees that its use of electric current shall not
exceed 4.0 watts per square foot of usable floor area and that its total
connected lighting load will not exceed the maximum load from time to time
permitted by applicable governmental regulations.  In the event Tenant
introduces into the Premises personnel or equipment which overloads the capacity
of the Building's electrical system or in any other way interferes with the
system's ability to perform properly, supplementary systems including check
meters may, if and as needed, at Landlord's option, be provided by Landlord, at
Tenant's expense.  Landlord shall not in any way be liable or responsible to
Tenant for any loss or damage or expense which Tenant may sustain or incur if,
during the Term of this Lease, either the quantity or character of electric
current is changed or electric current is no longer available or suitable for
Tenant's requirements due to a factor or cause beyond Landlord's control.

     Landlord reserves the exclusive right to provide electric and other utility
service to the Building.  Tenant may request permission from Landlord (which
consent may be withheld in its sole discretion) to arrange electric and other
utility service exclusively serving the Premises.  Should such permission be
granted, however, such service shall be installed only in such locations and in
such manner as shall be specifically approved by Landlord in its sole
discretion, Tenant shall be responsible for restoration of any damage caused by
such installation and Tenant shall be responsible for removal of such
installations at the termination of this Lease.  Landlord may limit Tenant's
choice of electrical or other utility providers in order to avoid proliferation
of such services to the Building or for any other reason.  In no event, however,
shall Landlord be responsible for any damages or inconvenience caused by
interruption in or poor quality of electricity or other utility services
provided to the Building or the Premises unless such damages are caused by the
negligence of Landlord, its agents or employees.

 4.5 CHANGE OF FISCAL YEAR.

     Landlord shall have the right from time to time to change the periods of
accounting under Section 4.2 to any annual period other than a calendar year,
and upon any such change all items referred to in Section 4.2 shall be
appropriately apportioned.  In all Landlord's

                                       16
<PAGE>

Statements rendered under Section 4.2, amounts for periods partially within and
partially without the accounting periods shall be appropriately apportioned, and
any items which are not determinable at the time of a Landlord's Statement shall
be included therein on the basis of Landlord's estimate, and with respect
thereto Landlord shall render promptly after determination a supplemental
Landlord's Statement, and appropriate adjustment shall be made according
thereto. All Landlord's Statements shall be prepared on an accrual basis of
accounting.

 4.6 PAYMENTS.

     All payments of Annual Rent and additional rent shall be made to Managing
Agent, or to such other person as Landlord may from time to time designate.  If
any installment of Annual Base Rent or additional rent or payments due on
account of leasehold improvements is paid more than 10 days after the due date
thereof, at Landlord's election, it shall bear interest at a rate equal to the
average prime commercial rate from time to time established by the three largest
national banks in Boston, Massachusetts plus 4% per annum from such due date,
which interest shall be immediately due and payable as further additional rent.

ARTICLE  V     LANDLORD'S COVENANTS

 5.1 LANDLORD'S COVENANTS DURING THE TERM.

     Landlord covenants during the Term:

     5.1.1     Building Services - To furnish during normal working hours heat,
               air-conditioning, elevator service and hot and chilled water
               service and after normal working hours on business days cleaning
               service as shown in Exhibit C. "Normal working hours" shall mean
               the hours of 8:00 a.m. through 5:00 p.m. Monday through Friday
               and the hours of 8:00 a.m. through 1:00 p.m. on Saturdays, and no
               hours on legal holidays and Sundays; provided, however, that
               Tenant shall have access to the Building 24 hours a day, 365 days
               a year, by means of a key or other access device to the main
               lobby of the Building to be provided to Tenant by Landlord.
               Tenant shall pay when due all amounts and charges for such
               services during hours other than normal working hours and shall
               indemnify and hold harmless Landlord from and against any and all
               claims, liabilities, damages, losses, costs and expenses
               (including reasonable attorneys' fees) in connection therewith.
               Landlord is not and shall not be required

                                       17
<PAGE>

               to furnish to Tenant or any other occupant of the Premises
               telephone or other communication service.

     5.1.2     Additional Building Services - To furnish, through Landlord's
               employees or independent contractors, reasonable additional
               Building operation services upon reasonable advance request of
               Tenant at equitable rates including an administrative fee from
               time to time established by Landlord to be paid by Tenant;

     5.1.3     Repairs - Except as otherwise provided in Article VII, to make
               such repairs to the roof, exterior walls, floor slabs, other
               structural components and common facilities of the Building as
               may be necessary to keep them in serviceable condition; and

     5.1.4     Tenant Directory - To include Tenant's name on the Tenant
               directory maintained by Landlord in the main lobby of the
               Building and on the floor of the Building on which the Premises
               are located, and to provide a Building standard sign on or
               adjacent to the entrance door to the Premises.

     5.1.5     Food Service - Landlord (or any affiliate or agent designated by
               Landlord) may provide, within the Building or any building in the
               office park in which the Building is located known as
               CambridgePark (an "Office Park Building"), a food service of a
               size, type, location and serving capacity as Landlord shall deem
               suitable, in its sole discretion. All losses incurred by Landlord
               in operating the food service facility during any fiscal year and
               properly allocable to the Building and other Office Park
               Buildings (the "Food Service Losses") shall be added to the
               Landlord's Annual Operating Costs for the year in which such
               losses were incurred for the purpose of calculating the Tenant's
               Escalation Payment pursuant to Section 4.2. All profits realized
               by the Landlord in operating the food service facility during any
               fiscal year and properly allocable to the Building and other
               Office Park Buildings (the "Food Service Profits") shall be
               credited against the Landlord's Annual Operating Costs for the
               Building and other Office Park Buildings for such year. For the
               purposes of this Section 5.1.5, the Food Service Profits or
               Losses for any year shall be calculated by deducting from the
               Gross Receipts of the Food Service (as hereinafter defined) all
               Expenses of Operation (as hereinafter defined). Gross Receipts of
               the Food Service as used herein are defined to mean the total
               amount in dollars of the actual prices charged, in cash, for food
               and beverages served at the facility,

                                       18
<PAGE>

               excluding sums collected for any sales tax or excise tax. The
               Expenses of Operation of the food service shall mean all expenses
               of operating the food service facility, including without
               limitation, salaries, wages, employment taxes and fringe
               benefits, food service administration costs, food costs,
               concessionaire's costs, operating costs, equipment maintenance
               and repair costs, if any, plus an annual return to the Landlord
               upon its investment in establishing the food service facility
               (including without limitation the cost of furniture, equipment,
               furnishings, and related mechanical systems) equal to fifteen
               percent (15%) of its investment or $50,000, whichever is less.

     If during any six-month period, the mathematical average of the number of
luncheon meals served by the food service facility per day is fewer than 300, or
the Food Service Losses incurred by the Landlord in operating the food service
facility during such six-month period exceed $25,000, then the Landlord shall
have the right and option, in its sole discretion, to take any steps necessary
to reduce or eliminate the losses (including without limitation, modification or
termination of the food service), unless one hundred percent (100%) of the
tenants occupying the Building agree that the Landlord's Annual Operating Costs
hereunder for the purpose of calculating the Annual Operating Expense Escalation
shall include one hundred percent (100%) of the Food Service Losses, without
limitation.

     Landlord reserves the right to approve Tenant's use of a food service
operator other than the Landlord's food service operator, if any.  Such approval
will not be unreasonably withheld.

     5.1.6     Quiet Enjoyment - That Landlord has the right to make this Lease
               and that Tenant on paying the rent and performing its obligations
               hereunder shall peacefully and quietly have, hold and enjoy the
               Premises throughout the Term without any manner of hindrance or
               molestation from Landlord or anyone claiming under Landlord,
               subject however to all the terms and provisions hereof.

 5.2 INTERRUPTIONS.

     Landlord shall not be liable to Tenant for any compensation or reduction of
rent by reason of inconvenience or annoyance, injury, death or for loss of
business arising from power or other utility losses or shortages, air pollution
or contamination, or from the necessity of Landlord's entering the Premises for
any of the purposes in this Lease

                                       19
<PAGE>

authorized, or for repairing the Premises or any portion of the Building or the
Lot or for any interruption or termination (by reason of any cause reasonably
beyond Landlord's control, including without limitation, loss of any applicable
license or government approval) of the food service provided by Landlord
pursuant to Section 5.1.5. In case Landlord is prevented or delayed from making
any repairs, alterations or improvements, or furnishing any service or
performing any other covenant or duty to be performed on Landlord's part, by
reason of any cause beyond Landlord's reasonable control, Landlord shall not be
liable to Tenant therefor, nor, except as expressly otherwise provided in
Article VII, shall Tenant be entitled to any abatement or reduction of rent by
reason thereof, nor shall the same give rise to a claim in Tenant's favor that
such failure constitutes actual or constructive total or partial, eviction from
the Premises.

     Landlord reserves the right to stop any service or utility system when
necessary by reason of accident or emergency or until necessary repairs have
been completed.  Except in case of emergency repairs, Landlord will give Tenant
reasonable advance notice of any contemplated stoppage and will use reasonable
efforts to avoid unnecessary inconvenience to Tenant by reason thereof.

     Landlord also reserves the right to institute such policies, programs and
measures as may be necessary, required or expedient for the conservation or
preservation of energy or energy services or as may be necessary or required to
comply with applicable codes, rules, regulations or standards.

ARTICLE  VI    TENANT'S COVENANTS

 6.1 TENANT'S COVENANTS DURING THE TERM.

     Tenant covenants during the Term and such further time as Tenant occupies
any part of the Premises:

     6.1.1     Tenant's Payments - To pay when due (a) all Annual Rent, (b) all
               taxes which may be imposed on Tenant's personal property in the
               Premises (including, without limitation, Tenant's fixtures and
               equipment) regardless to whomever assessed, (c) as additional
               rent, Tenant's Escalation Payments, (d) all charges by public
               utilities for electricity, telephone (including service
               inspections therefor) and other services rendered to the Premises
               not otherwise required hereunder to be furnished by Landlord
               without charge and not

                                       20
<PAGE>

               consumed in connection with any services required to be furnished
               by Landlord without charge, (e) as additional rent, all costs for
               Landlord's Work attributable to change orders and any work
               performed in the Premises by Landlord or Tenant in excess of
               Landlord's Work, and (f) as additional rent, all charges to
               Landlord for services rendered pursuant to Section 5.1.2 hereof.

     6.1.2     Repairs and Yielding Up - Except as otherwise provided in Article
               VII and Section 5.1.3, to keep the Premises in good order, repair
               and condition, reasonable wear only excepted; and at the
               expiration or termination of this Lease peaceably to yield up the
               Premises and all alterations and additions therein, including all
               telephone and data wiring installed by or at the request of
               tenant, in such order, repair and condition, first removing all
               goods and effects of Tenant and any alterations and additions,
               the removal of which is required by agreement or specified to be
               removed by Landlord by notice to Tenant, and repairing all damage
               caused by such removal and restoring the Premises and leaving
               them dean and neat.

     6.1.3     Occupancy and Use - Continuously from the Commencement Date, to
               use and occupy the Premises only for the Permitted Uses; not to
               injure or deface the Building or the Lot; to keep the Premises
               dean and in a neat and orderly condition; and not to permit in
               the Premises any use thereof which is improper, offensive,
               contrary to law or ordinances, or liable to create a nuisance or
               to create an unsafe or hazardous condition, or to invalidate or
               increase the premiums for any insurance on the Building or its
               contents or liable to render necessary any alteration or addition
               to the Building; not to dump, flush, or in any way introduce any
               Hazardous Materials or any other toxic substances into the
               septic, sewage or other waste disposal system serving the
               Premises, not to generate, store or dispose of Hazardous
               Materials in or on the Premises, or the Lot or dispose of
               Hazardous Materials from the Premises to any other location
               without the prior written consent of Landlord and then only in
               compliance with the Resource Conservation and Recovery Act of
               1976, as amended, 42 U.S.C. (S) 6901 et seq., and all other
               applicable laws, ordinances and regulations; to notify Landlord
               of any incident which would require the filing of a notice under
               applicable federal, state, or local law; not to use, store or
               dispose of Hazardous Materials on the Premises without first
               submitting to Landlord a list of all such Hazardous substances
               and all permits required therefor and thereafter providing to
               Landlord on an annual basis Tenant's certification

                                       21
<PAGE>

               that all such permits have been renewed with copies of such
               renewed permits; and to comply with the orders and regulations of
               all governmental authorities with respect to zoning, building,
               fire, health and other codes, regulations, ordinances or laws
               applicable to the Premises. As used herein, "Hazardous Materials"
               shall mean and include, but shall not be limited to, any
               petroleum product and all hazardous or toxic substances or wastes
               including any asbestos-containing materials, waste oils, solvents
               and chlorinated oils, polychlorinated biphenyls (PCBs), or
               substances which are included under or regulated by any federal,
               state or local law, rule or regulation (whether now existing or
               hereafter enacted or promulgated, as they may be amended from
               time to time) pertaining to the environment, contamination or
               clean-up (all such laws, rules and regulations being referred to
               collectively as the "Environmental Laws"), including, without
               limitation, the Comprehensive Environmental Response Compensation
               and Liability Act of 1980, as amended, 42 U.S.C. (S) 9601 and
               regulations adopted pursuant to said Act.

     6.1.4     Rules and Regulations - To comply with the Rules and Regulations
               set forth in Exhibit D and all other reasonable Rules and
               Regulations hereafter made by Landlord, of which Tenant has been
               given notice, for the care and use of the Building and the Lot
               and their facilities and approaches, it being understood that
               Landlord shall not be liable to Tenant for the failure of other
               tenants of the Building to conform to such Rules and Regulations.

     6.1.5     Safety Appliances - To keep the Premises equipped with all safety
               appliances required by law or ordinance or any other regulation
               of any public authority because of any use made by Tenant and to
               procure all licenses and permits so required because of such use
               and, if requested by Landlord, to do any work so required because
               of such use, it being understood that the foregoing provisions
               shall not be construed to broaden in any way Tenant's Permitted
               Uses.

     6.1.6     Assignment and Subletting.

     Not without the prior written consent of Landlord to assign, mortgage,
pledge, encumber, sell or transfer this Lease, in whole or in part, to make any
sublease, or to permit occupancy of the Premises or any part thereof by anyone
other than Tenant, voluntarily or by operation of law (it being understood that
in no event shall Landlord consent to any such assignment, sublease or occupancy
if the same is on terms more

                                       22
<PAGE>

favorable to the successor occupant than to the then occupant); as additional
rent, to reimburse Landlord promptly for reasonable legal and other expenses
incurred by Landlord in connection with any request by Tenant for consent to
assignment or subletting; no assignment or subletting shall affect the
continuing primary liability of Tenant (which, following assignment, shall be
joint and several with the assignee); no consent to any of the foregoing in a
specific instance shall operate as a waiver in any subsequent instance.
Landlord's consent to any proposed assignment or subletting shall not be
unreasonably withheld, but is required both as to the terms and conditions
thereof, and as to the creditworthiness of the proposed assignee or subtenant
and the consistency of the proposed assignee's or subtenant's business with
other uses and tenants in the Building. In the event that any assignee or
subtenant pays to Tenant any amounts in excess of the Annual Rent and additional
rent then payable hereunder, or pro rata portion thereof on a square footage
basis for any portion of the Premises, Tenant shall promptly pay one hundred
percent (100%) of said excess to Landlord as and when received by Tenant. If
Tenant requests Landlord's consent to assign this Lease or sublet more than
twenty-five (25%) of the Premises, Landlord shall have the option, exercisable
by written notice to Tenant given within ten (10) days after receipt of such
request, to terminate this Lease as of a date specified in such notice which
shall be not less than thirty (30) or more than sixty (60) days after the date
of such notice. Landlord may, in its sole discretion, withhold consent to any
proposed assignment or subletting to another tenant of the Building or an
affiliate of such tenant or an entity (or affiliate of any entity) with which
Landlord was negotiating for space in the Building during the preceding eighteen
(18) months.

     If at any time during the Term of this Lease, Tenant is:

6.1.6.0.1 (i)    a corporation, limited liability company or a trust (whether or
                 not having shares of beneficial interest) and there shall occur
                 any change in the identity of any of the persons then having
                 power to participate in the election or appointment of the
                 directors, trustees or other persons exercising like functions
                 and managing the affairs of Tenant; or

6.1.6.0.2 (ii)   a partnership or association or otherwise not a natural person
                 (and is not a corporation, limited liability company or a
                 trust) and there shall occur any change in the identity of any
                 of the persons who then are members of such partnership or
                 association or who comprise Tenant;

                                       23
<PAGE>

Tenant shall so notify Landlord and Landlord may terminate this Lease by notice
to Tenant given within ninety (90) days thereafter if, in Landlord's reasonable
judgment, the credit of Tenant is thereby materially impaired.  This paragraph
shall not apply if the initial Tenant named herein is a corporation and the
outstanding voting stock thereof is listed on a recognized securities exchange.

     Notwithstanding anything to the contrary contained in this Lease, Tenant
may assign Tenant's interest in this Lease, without Landlord's prior written
consent (but upon not less than thirty (30) days prior notice to Landlord
setting forth the name and address and enclosing the most recent annual and
quarterly financial reports (audited, if available) of the proposed assignee),
to:  (a) a subsidiary, affiliate, parent or other entity which controls, is
controlled by, or is under common control with Tenant; or (b) a successor entity
to Tenant resulting from merger, consolidation or non-bankruptcy reorganization;
provided, in each case, that the assignee has a net worth which is at least as
great as the greater of the net worth of Tenant (x) at the time of execution of
the Lease or (y) immediately prior to the assignment.

     6.1.7     Indemnity - To defend, with counsel approved by Landlord, all
               actions against Landlord, Managing Agent, any partner, member,
               trustee, stockholder, officer, director, employee or beneficiary
               of Landlord or Managing Agent, holders of mortgages secured by
               the Premises or the Building and Lot and any other party having
               an interest in the Premises ("Indemnified Parties") with respect
               to, and to pay, protect, indemnify and save harmless, to the
               extent permitted by law, all Indemnified Parties from and
               against, any and all liabilities, losses damages, costs, expenses
               (including reasonable attorneys' fees and expenses), causes of
               action, suits, claims, demands or judgments of any nature arising
               from or related to (i) injury to or death of any person, or
               damage to or loss of property, on the Premises or on adjoining
               sidewalks, streets or ways, or connected with the use, condition
               or occupancy of any of the foregoing unless caused by the
               negligence of Landlord or its servants or agents, (ii) violation
               of this Lease, or (iii) any act, fault, omission, or other
               misconduct of Tenant or its agents, employees, contractors,
               licensees, sublessees or invitees or (iv) the use, generation,
               storage or disposal of Hazardous Materials by Tenant or its
               agents, employees or invitees on the Premises, the Building or
               Lot or any portion thereof or any surrounding area, including,
               without limitation, any and all liabilities, losses, damages,
               costs, expenses

                                       24
<PAGE>

               (including reasonable attorneys' fees and expenses), causes of
               action, suits, claims, demands or judgments of any nature arising
               from or related to removal or other remediation of any Hazardous
               Materials or precautions required to protect against the release
               of Hazardous Materials by Tenant or its agents, employees,
               contractors, licensees, sublessees or invitees into the
               environment to the extent required by any Environmental Laws (as
               defined below).

     6.1.8     Tenant's Insurance - To maintain (a) all risk property insurance
               in amounts sufficient to fully cover Tenant's improvements and
               all property in the Premises which is not owned by Landlord and
               (b) commercial general liability insurance on the Premises, with
               Landlord named as an additional insured, indemnifying Landlord
               and Tenant against all claims and demands for (i) injury to or
               death of any person or damage to or loss of property, on the
               Premises or adjoining walks, streets or ways, or connected with
               the use, condition or occupancy of any of the foregoing unless
               caused by the negligence of Landlord or its servants or agents,
               (ii) violation of this Lease, or (iii) any act, fault or
               omission, or other misconduct of Tenant or its agents, employees,
               contractors, licensees, sublessees or invitees, in amounts which
               shall, at the beginning of the Term, be at least equal to the
               limits set forth in Section 1.1, and from time to time during the
               Term, shall be for such higher limits, if any, as are customarily
               carried in the area in which the Premises are located on property
               similar to the Premises and used for similar purposes, and shall
               be written on the "Occurrence Basis," and to furnish Landlord
               with certificates thereof. Such insurance shall be effected under
               valid and enforceable policies with insurers authorized to do
               business in Massachusetts as stock or mutual companies that are
               rated in the current edition of Best's Key Rating Guide, Property
                                               ---------------------------------
               and Casualty as A and as Class VII or higher. Such policies shall
               ------------
               name Landlord and Tenant as the insureds as their respective
               interests may appear. Not later than the first to occur of (a)
               the Commencement Date or (b) the commencement of any activities
               by Tenant in or about the Premises and thereafter not less than
               thirty (30) days prior to the expiration dates of the expiring
               policies theretofore furnished pursuant to this Section 6.1.8,
               Tenant shall deliver to Landlord certificates of insurance issued
               by the insurers evidencing all such policies in form satisfactory
               to Landlord, accompanied by evidence satisfactory to Landlord of
               payment of the first installment of the premiums. Each such
               policy shall provide that it may not be canceled and that its

                                       25
<PAGE>

               form, terms or conditions may not be changed without at least
               thirty (30) days' prior written notice to each insured named
               therein.

     6.1.9     Tenant's Worker's Compensation Insurance - To keep all of
               Tenant's employees working in the Premises covered by worker's
               compensation insurance in statutory amounts and to furnish
               Landlord with certificates thereof.

     6.1.10    Landlord's Right of Entry - To permit Landlord and Landlord's
               agents entry: to examine the Premises at reasonable times and, if
               Landlord shall so elect, to make repairs or replacements; to
               remove, at Tenant's expense, any changes, additions, signs,
               curtains, blinds, shades, awnings, aerials, or the like not
               consented to in writing; and to show the Premises to prospective
               tenants during the twelve (12) months preceding expiration of the
               Term and to prospective purchasers and mortgagees at all
               reasonable times.

     6.1.11    Loading - Not to place Tenant's Property, as defined in Section
               6.1.13, upon the Premises so as to exceed a rate of fifty (50)
               pounds of live load per square foot and not to move any safe,
               vault or other heavy equipment in, about or out of the Premises
               except in such manner and at such times as Landlord shall in each
               instance approve; Tenant's business machines and mechanical
               equipment which cause vibration or noise that may be transmitted
               to the Building structure or to any other leased space in the
               Building shall be placed and maintained by Tenant in settings of
               cork, rubber, spring, or other types of vibration eliminators
               sufficient to eliminate such vibration or noise.

     6.1.12    Landlord's Costs - In case Landlord shall be made party to any
               litigation commenced by or against Tenant or by or against any
               parties in possession of the Premises or any part thereof
               claiming under Tenant, to pay, as additional rent, all costs
               including, without implied limitation, reasonable counsel fees
               incurred by or imposed upon Landlord in connection with such
               litigation and, as additional rent, also to pay all such costs
               and fees incurred by Landlord in connection with the successful
               enforcement by Landlord of any obligations of Tenant under this
               Lease.

     6.1.13    Tenant's Property - All the furnishings, fixtures, equipment,
               effects and property of every kind, nature and description of
               Tenant and of all persons claiming by, through or under Tenant
               which, during the continuance of this Lease or any occupancy of
               the Premises by

                                       26
<PAGE>

               Tenant or anyone claiming under Tenant, may be on the Premises or
               elsewhere in the Building or on the Lot shall be at the sole risk
               and hazard of Tenant, and if the whole or any part thereof shall
               be destroyed or damaged by fire, water or otherwise, or by the
               leakage or bursting of water pipes, steam pipes, or other pipes,
               by theft, or from any other cause, no part of said loss or damage
               is to be charged to or to be borne by Landlord unless due to the
               gross negligence of Landlord.

     6.1.14    Labor or Materialmen's Liens - To pay promptly when due the
               entire cost of any work done on the Premises by Tenant, its
               agents, employees, or independent contractors; not to cause or
               permit any liens for labor or materials performed or furnished in
               connection therewith to attach to the Premises; and immediately
               to discharge any such liens which may so attach.

     6.1.15    Changes or Additions - Not to make any changes or additions to
               the Premises without Landlord's prior written consent and only in
               accordance with Article III hereto, provided that Tenant shall
               reimburse Landlord for all costs incurred by Landlord in
               reviewing Tenant's proposed changes or additions, and provided
               further that, in order to protect the functional integrity of the
               Building, all changes and additions shall be performed by
               contractors selected from a list of approved contractors prepared
               by Landlord from time to time.

     6.1.16    Holdover - To pay to Landlord the greater of twice (a) the then
               fair market rent as conclusively determined by Landlord or (b)
               the total of the Annual Rent and all additional rent then
               applicable for each month or portion thereof Tenant shall retain
               possession of the Premises or any part thereof after the
               termination of this Lease, whether by lapse of time or otherwise,
               and also to pay an damages sustained by Landlord on account
               thereof; the provisions of this subsection shall not operate as a
               waiver by Landlord of the right of reentry provided in this
               Lease. At the option of Landlord exercised by a written notice
               given to Tenant while such holding over continues, such holding
               over shall constitute an extension of this Lease for a period of
               one year.

     6.1.17    Security - To indemnify, and save Landlord harmless from any
               claim for injury to person or damage to property asserted by any
               personnel, employee, guest, invitee or agent of Tenant which is
               suffered or occurs in or about the Premises or in or about the

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<PAGE>

               Building or the Lot by reason of the act of any intruder or any
               other person in or about the Premises, the Building or the Lot.

     6.1.18    Tenant Financial Statements - Tenant shall provide Landlord with
               audited financial statements on an annual basis, within ninety
               (90) days of the end of Tenant's fiscal year.

ARTICLE  VII   DAMAGE AND DESTRUCTION; CONDEMNATION

 7.1 FIRE OR OTHER CASUALTY.

     Subject to the provisions of Section 7.1.2 hereof, in the event during the
Term hereof the Premises shall be partially damaged (as distinguished from
"substantially damaged" as such term is hereinafter defined) by fire, explosion,
casualty or any other occurrence covered or as may be required to be covered, as
herein provided, by Landlord's insurance or by such casualty plus required
demolition, or by action taken to reduce the impact of any such event, Landlord
shall forthwith proceed to repair such damage and restore the Premises, or so
much thereof as was originally constructed or delivered by Landlord to
substantially its condition at the time of such fire, explosion, casualty or
occurrence, provided that Landlord shall not be obligated to expend for such
repair an amount in excess of the insurance proceeds recovered as a result of
such damage and, further provided that Tenant is not then in default of any of
its obligations under this Lease beyond any applicable cure period.  Landlord
shall not be responsible for any delay which may result from any cause beyond
Landlord's reasonable control.

     7.1.1     If, however, (i) the Premises should be damaged or destroyed (a)
               by fire or other casualty (1) to the extent of twenty-five
               percent (25%) or more of the cost of replacement, or (2) so that
               twenty-five (25%) or more of the principal area contained in the
               Premises shall be rendered untenantable, or (b) by any casualty
               other than those covered by insurance policies required to be
               maintained by Landlord under this Lease (hereinafter
               "substantially damaged"), or (ii) the Premises shall be damaged
               in whole or in part during the last year of the Term, or (iii)
               there shall be damage to the Premises of a character as cannot
               reasonably be expected to be repaired within twelve (12) months
               from the date of casualty, or (iv) such restoration involves the
               demolition of or repair of damage to twenty-five percent (25%) or
               more of the Premises, or (v) applicable law requires the
               demolition of the Building or forbids the rebuilding of the
               damaged portion of the Building, or (vi) such

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<PAGE>

               restoration requires repairs in an amount in excess of the
               insurance proceeds recovered or recoverable, or (vii) Landlord's
               mortgagee shall require that the insurance proceeds from such
               damage or destruction be applied against the principal balance
               due on any mortgage, Landlord may, at its option, either
               terminate this Lease or elect to repair the Premises and Landlord
               shall notify Tenant as to its election within ninety (90) days
               after such fire or casualty. If Landlord elects to terminate this
               Lease, the Term hereof shall end on the date specified in the
               notice (which shall be the end of a calendar month and not sooner
               than thirty (30) days after such election was made). If Landlord
               does not elect to terminate this Lease, then Landlord shall
               perform such repairs set forth in Section 7.1.3 hereof and Tenant
               shall perform such repairs in the Building as set forth in
               Section 7.1.4 hereof, and the Term shall continue without
               interruption and this Lease shall remain in full force and
               effect.

     If Landlord has not elected to terminate this Lease and if there shall be
damage to the Premises of a character as cannot (in the judgment of Landlord's
engineer) reasonably be expected to be repaired within twelve (12) months from
the date of casualty, then Tenant may, at its option, terminate this Lease
provided that Tenant's election shall be made by notice to Landlord within
thirty (30) days of Landlord's delivery of the estimate of Landlord's engineer
as to the time period required for restoration.

     7.1.2     If Landlord does not elect to terminate this Lease as provided in
               Section 7.1.2 hereof and if Tenant is not then in default of any
               of its obligations under the Lease beyond any applicable cure
               period provided for herein, Landlord shall, provided any third
               party mortgagee of the Building makes insurance proceeds
               available for restoration, reconstruct as much of the Premises as
               was originally constructed by Landlord (it being understood by
               Tenant that Landlord shall not be responsible for any
               reconstruction of leasehold improvements, which reconstruction is
               the sole responsibility of Tenant) to substantially its condition
               at the time of such damage, but Landlord shall not be responsible
               for any delays which may result from any cause beyond Landlord's
               reasonable control.

     7.1.3     If Landlord does not elect to terminate this Lease as provided in
               Section 7.1.2 hereof; Tenant shall, at its own cost and expense,
               repair and restore the Premises in accordance with the provisions

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<PAGE>

               of Section 6.1.15 hereof to the extent not required to be
               repaired by Landlord pursuant to the provisions of this Section
               7.1, including, but not limited to, the repairing and/or
               replacement of its merchandise, trade fixtures, furnishings and
               equipment in a manner and to at least a condition equal to that
               prior to its damage or destruction. Tenant agrees to commence the
               performance of its work when notified by Landlord that the work
               to be performed by Tenant can, in accordance with good
               construction practices, then be commenced and Tenant shall
               complete such work as promptly thereafter as is practicable, but
               in no event more than 90 days thereafter.

     7.1.4     All proceeds payable from Landlord's insurance policies with
               respect to the Premises shall belong to and shall be payable to
               Landlord. If Landlord does not elect to terminate this Lease as
               provided in Section 7.1.2 hereof, Landlord shall disburse and
               apply so much of any insurance recovery as shall be necessary
               against the cost to Landlord of restoration and rebuilding of
               Landlord's work referred to in Section 7.1.3 hereof, subject to
               the prior rights of any lessor under a ground or underlying lease
               covering the Building and/or the holder of any mortgage liens
               against the Building.

     7.1.5     In the event that the provisions of Section 7.1.1 or Section
               7.1.2 shall become applicable, the Annual Rent and additional
               rent shall be abated or reduced proportionately during any period
               in which, by reason of such damage or destruction, there is
               substantial interference with the operation of the business of
               Tenant in the Premises, having regard to the extent to which
               Tenant may be required to discontinue its business in the
               Premises, and such abatement or reduction shall continue for the
               period commencing with such destruction or damage and ending with
               the completion by Landlord of such work of repair and/or
               reconstruction as Landlord is obligated to do.

 7.2      EMINENT DOMAIN.

     If, after the execution and before termination of this Lease, the entire
Premises shall be taken by eminent domain or destroyed by the action of any
public or quasi-public authority, or in the event of conveyance in lieu thereof,
the Term shall cease as of the day possession shall be taken by such authority,
and Tenant shall pay rent up to that date with a pro-rata refund by Landlord of
such rent and additional
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<PAGE>

rent as shall have been paid in advance for a period subsequent to the date of
the taking of possession.

     If less than twenty-five percent (25%) of the Premises shall be so taken or
conveyed, this Lease shall cease only with respect to the parts so taken or
conveyed, as of the day possession shall be taken, and Tenant shall pay rent up
to that day, with an appropriate refund by Landlord of such rent as may have
been paid in advance for a period subsequent to the date of the taking of
possession, and thereafter the Annual Rent shall be equitably adjusted.  Pending
agreement of such rental adjustment, Tenant agrees to pay to Landlord the Annual
Rent and additional rent in effect immediately prior to the taking by eminent
domain. Landlord shall at its expense make all necessary repairs or alterations
so as to constitute the remaining premises a complete architectural unit.

     If more than twenty-five percent (25%) of the Premises shall be so taken or
conveyed, then the Term shall cease only as respects the part so taken or
conveyed, from the day possession shall be taken, and Tenant shall pay rent to
that date with an appropriate refund by Landlord of such rent as may have been
paid in advance for a period subsequent to the date of the taking of possession,
but Landlord shall have the right to terminate this Lease upon notice to Tenant
in writing within thirty (30) days after such taking of possession.  If Landlord
does not elect to terminate the Lease, all of the terms herein provided shall
continue in effect except that the Annual Rent shall be equitably adjusted, and
Landlord shall make all necessary repairs or alterations so as to constitute the
remaining premises a complete architectural unit.

     All compensation awarded for any such taking or conveyance, whether for the
whole or a part of the Premises, shall be the property of Landlord, whether such
damages shall be awarded as compensation for diminution in the value of the
leasehold or of the fee of or underlying leasehold interest in the Premises, and
Tenant hereby assigns to Landlord all of Tenant's right, title and interest in
and to any and all such compensation; provided, however, that Tenant shall be
entitled to seek a separate award for Tenant's stock, trade fixtures and
relocation expense.

     In the event of any taking of the Premises or any part thereof for
temporary use, this Lease shall be and remain unaffected thereby and rent shall
not abate.

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<PAGE>

ARTICLE VIII   RIGHTS OF MORTGAGEE

 8.1 PRIORITY OF LEASE.

     This Lease is and shall continue to be subject and subordinate to any
presently existing mortgage or deed of trust of record covering the Lot or
Building or both (the "mortgaged premises").  The holder of any such presently
existing mortgage or deed of trust shall have the election to subordinate the
same to the rights and interests of Tenant under this Lease exercisable by
filing with the appropriate recording office a notice of such election,
whereupon the Tenant's rights and interests hereunder shall have priority over
such mortgage or deed of trust.

     Unless the option provided for in the next following sentence shall be
exercised, this Lease shall be superior to and shall not be subordinate to, any
mortgage, deed of trust or other voluntary hen hereafter placed on the mortgaged
premises.  The holder of any such mortgage, deed of trust or other voluntary
lien shall have the option to subordinate this Lease to the same, provided that
such holder enters into an agreement with Tenant by the terms of which the
holder will agree to recognize the rights of Tenant under this Lease and to
accept Tenant as tenant of the Premises under the terms and conditions of this
Lease in the event of acquisition of title by such holder through foreclosure
proceedings or otherwise and Tenant will agree to recognize the holder of such
mortgage as Landlord in such event, which agreement shall be made to expressly
bind and inure to the benefit of the successors and assigns of Tenant and of the
holder and upon anyone purchasing the mortgaged premises at any foreclosure
sale.  Any such mortgage to which this Lease shall be subordinated may contain
such terms, provisions and conditions as the holder deems usual or customary.

 8.2 RIGHTS OF MORTGAGE HOLDERS; LIMITATION OF MORTGAGEE'S LIABILITY.

     The word "mortgage" as used herein includes mortgages, deeds of trust or
other similar instruments evidencing other voluntary liens or encumbrances, and
modifications, consolidations, extensions, renewals, replacements and
substitutes thereof.  The word "holder" shall mean a mortgagee, and any
subsequent holder or holders of a mortgage.  Until the holder of a mortgage
shall enter and take possession of the Premises for the purpose of foreclosure,
such holder shall have only such rights of Landlord as are necessary to preserve
the integrity of this Lease as security.  Upon entry and taking possession of
the Premises for the

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<PAGE>

purpose of foreclosure, such holder shall have all the rights of Landlord.
Notwithstanding any other provision of this Lease to the contrary, including
without limitation Section 10.4, no such holder of a mortgage shall be liable,
either as mortgagee or as assignee, to perform, or be liable in damages for
failure to perform any of the obligations of Landlord unless and until such
holder shall enter and take possession of the Premises for the purpose of
foreclosure, and such holder shall not in any event be liable to perform or for
failure to perform the obligations of Landlord under Section 3.2. Upon entry for
the purpose of foreclosure, such holder shall be liable to perform all of the
obligations of Landlord (except for the obligations under Section 3.2), subject
to and with the benefit of the provisions of Section 10.4, provided that a
discontinuance of any foreclosure proceeding shall be deemed a conveyance under
said provisions to the owner of the equity of the Premises.

 8.3 MORTGAGEE'S ELECTION.

     Notwithstanding any other provision to the contrary contained in this
Lease, if prior to substantial completion of Landlord's obligations under
Article III, any holder of a first mortgage on the mortgaged premises enters and
takes possession thereof for the purpose of foreclosing the mortgage, such
holder may elect, by written notice given to Tenant and Landlord at any time
within ninety (90) days after such entry and taking of possession, not to
perform Landlord's obligations under Article III, and in such event such holder
and all persons claiming under it shall be relieved of all obligations to
perform, and all liability for failure to perform, said Landlord's obligations
under Article III, and Tenant may terminate this Lease and all its obligations
hereunder by written notice to Landlord and such holder given within thirty (30)
days after the day on which such holder shall have given its notice as
aforesaid.

 8.4 NO PREPAYMENT OR MODIFICATION, ETC.

     Tenant shall not pay Annual Rent, additional rent, or any other charge more
than ten (10) days prior to the due date thereof.  No prepayment of Annual Rent,
additional rent or other charge, no assignment of this Lease and no agreement to
modify so as to reduce the rent, change the Term, or otherwise materially change
the rights of Landlord under this Lease, or to relieve Tenant of any obligations
or liability under this Lease, shall be valid unless consented to in writing by
Landlord's mortgagees of record, if any.

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<PAGE>

 8.5 NO RELEASE OR TERMINATION.

     No act or failure to act on the part of Landlord which would entitle Tenant
under the terms of this Lease, or by law, to be relieved of Tenant's obligations
hereunder or to terminate this Lease, shall result in a release or termination
of such obligations or a termination of this Lease unless (i) Tenant shall have
first given written notice of Landlord's act or failure to act to Landlord's
mortgagees of record, if any, specifying the act or failure to act on the part
of Landlord which could or would give basis to Tenant's rights and (ii) such
mortgagees, after receipt of such notice, have failed or refused to correct or
cure the condition complained of within a reasonable time thereafter, but
nothing contained in this Section 8.5 shall be deemed to impose any obligation
on any such mortgagee to correct or cure any such condition.  "Reasonable time"
as used above means and includes a reasonable time to obtain possession of the
mortgaged premises, if the mortgagee elects to do so, and a reasonable time to
correct or cure the condition if such condition is determined to exist.

 8.6 CONTINUING OFFER.

     The covenants and agreements contained in this Lease with respect to the
rights, powers and benefits of a mortgagee (particularly, without limitation
thereby, the covenants and agreements contained in this Article VIII) constitute
a continuing offer to any person, corporation or other entity, which by
accepting or requiring an assignment of this Lease or by entry or foreclosure
assumes the obligations herein set forth with respect to such mortgagee; such
mortgagee is hereby constituted a party to this Lease as an obligee hereunder to
the same extent as though its name were written hereon as such; and such
mortgagee shall be entitled to enforce such provisions in its own name.  Tenant
agrees on request of Landlord to execute and deliver from time to time any
agreement which may reasonably be deemed necessary to implement the provisions
of this Article VIII.

 8.7 MORTGAGEE'S APPROVAL.

     Landlord's obligation to perform its covenants and agreements hereunder is
subject to the condition precedent that this Lease be approved by the holder of
any mortgage of which the Premises are a part and by the issuer of any
commitment to make a mortgage loan which is in effect on the date hereof.

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<PAGE>

ARTICLE IX     DEFAULT

 9.1 EVENTS OF DEFAULT.

     If any default by Tenant continues, in case of Annual Rent, additional rent
or any other monetary obligation to Landlord for more than ten (10) days after
notice (provided, however, that if Tenant defaults in any monetary obligation to
Landlord twice in any twelve (12) month period, no notice of default by Tenant
of any monetary obligation shall thereafter be required), or if Tenant fails to
provide an estoppel certificate in accordance with Section 10.10 hereof, or if
any default by Tenant continues in any other case for more than thirty (30) days
after notice and such additional time, if any, as is reasonably necessary to
cure the default if the default is of such a nature that it cannot reasonably be
cured in thirty (30) days and Tenant promptly commences to cure such default and
diligently pursues such cure without interruption to completion; or if Tenant
becomes insolvent, fails to pay its debts as they fall due, files a petition
under any chapter of the U.S. Bankruptcy Code, 11 U.S.C. 101 et seq., as it may
be amended (or any similar petition under any insolvency law of any
jurisdiction), or if such petition is filed against Tenant; or if Tenant
proposes any dissolution, liquidation, composition, financial reorganization or
recapitalization with creditors, makes an assignment or trust mortgage for
benefit of creditors, or if a receiver, trustee, custodian or similar agent is
appointed or takes possession with respect to any property of Tenant; or if the
leasehold hereby created is taken on execution or other process of law in any
action against Tenant; then, and in any such case, Landlord and the agents and
servants of Landlord may, in addition to and not in derogation of any remedies
for any preceding breach of covenant, immediately or at any time thereafter
while such default continues and without further notice, at Landlord's election,
do any one or more of the following:  (1) give Tenant written notice stating
that the Lease is terminated, effective upon the giving of such notice or upon a
date stated in such notice, as Landlord may elect, in which event the Lease
shall be irrevocably extinguished and terminated as stated in such notice
without any further action, or (2) with or without process of law, in a lawful
manner enter and repossess the Premises as of Landlord's former estate, and
expel Tenant and those claiming through or under Tenant, and remove its and
their effects, without being guilty of trespass, in which event the Lease shall
be irrevocably extinguished and terminated at the time of such entry, or (3)
pursue any other rights or remedies permitted by law.  Any such termination of
the Lease shall be without prejudice to any remedies which might otherwise be
used for arrears of rent or prior breach of covenant,

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<PAGE>

and in the event of such termination Tenant shall remain liable under this Lease
as hereinafter provided. Tenant hereby waives all statutory rights (including,
without limitation, rights of redemption, if any) to the extent such rights may
be lawfully waived, and Landlord, without notice to Tenant, may store Tenant's
effects and those of any person claiming through or under Tenant at the expense
and risk of Tenant and, if Landlord so elects, may sell such effects at public
auction or private sale and apply the net proceeds to the payment of all sums
due to Landlord from Tenant, if any, and pay over the balance, if any, to
Tenant.

 9.2 TENANT'S OBLIGATIONS AFTER TERMINATION.

     In the event that this Lease is terminated under any of the provisions
contained in Section 9.1 or shall be otherwise terminated for breach of any
obligation of Tenant, Tenant covenants to pay forthwith to Landlord, as
compensation, (i) the excess of the total rent reserved for the residue of the
Term over the rental value of the Premises for said residue of the Term and (ii)
the unamortized portion of the actual out-of-pocket costs and expenses incurred
by Landlord in completing Landlord's Work and fees and commissions paid to the
Broker, amortized on a straight-line reduction basis from 100% to 0% over the
Term of the Lease set forth in Section 1.1 hereof.  In calculating the rent
reserved, there shall be included, in addition to the Annual Rent and all
additional rent, the value of all other consideration agreed to be paid or
performed by Tenant for said residue.  Tenant further covenants as an additional
and cumulative obligation after any such ending to pay punctually to Landlord
all the sums and perform all the obligations which Tenant covenants in this
Lease to pay and to perform in the same manner and to the same extent and at the
same time as if this Lease had not been terminated.  In calculating the amounts
to be paid by Tenant under the next foregoing covenant, Tenant shall be credited
with any amount paid to Landlord as compensation as provided in the first
sentence of this Section 9.2 and also with the net proceeds of any rents
obtained by Landlord by reletting the Premises, after deducting all Landlord's
expenses in connection with such reletting, including, without implied
limitation, all repossession costs, brokerage commissions, fees for legal
services and expenses of preparing the Premises for such reletting, it being
agreed by Tenant that Landlord may (i) relet the Premises or any part or parts
thereof for a term or terms which may at Landlord's option be equal to or less
than or exceed the period which would otherwise have constituted the balance of
the Term and may grant such concessions and free rent as Landlord in its sole
judgment considers advisable or necessary to relet the same and (ii) make such
alterations, repairs and

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<PAGE>

decorations in the Premises as Landlord in its sole judgment considers advisable
or necessary to relet the same, and no action of Landlord in accordance with the
foregoing or failure to relet or to collect rent under reletting shall operate
or be construed to release or reduce Tenant's liability as aforesaid.

     So long as at least twelve (12) months of the Term remain unexpired at the
time of such termination, in lieu of any other damages or indemnity and in lieu
of full recovery by Landlord of all sums payable under all the foregoing
provisions of this Section 9.2, Landlord may by written notice to Tenant, at any
time after this Lease is terminated under any of the provisions contained in
Section 9.1, or is otherwise terminated for breach of any obligation of Tenant
and before such full recovery, elect to recover and Tenant shall thereupon pay,
as liquidated damages, an amount equal to the aggregate of the Annual Rent and
additional rent accrued under Article IV in the 12 months ended next prior to
such termination plus the amount of Annual Rent and additional rent of any kind
accrued and unpaid at the time of termination and less the amount of any
recovery by Landlord under the foregoing provisions of this Section 9.2 up to
the time of payment of such liquidated damages.

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

ARTICLE X      MISCELLANEOUS

10.1 NOTICE OF LEASE.

     Upon request of either party, both parties shall execute and deliver, after
the Term begins, a notice of this Lease in form appropriate for recording or
registration, and if this Lease is terminated before the Term expires, an
instrument in such form acknowledging the date of termination.

10.2 RELOCATION.

     Landlord reserves the right to relocate the Premises to comparable space
within the Building or another Office Park Building by giving

                                       37
<PAGE>

Tenant prior written notice of such intention to relocate. If within thirty (30)
days after receipt of such notice, Landlord and Tenant have not agreed on the
space to which the Premises are to be relocated and the timing of such
relocation, this Lease shall terminate on that date which is sixty (60) days
after the Tenant's receipt of such notice. If Landlord and Tenant do so agree,
then the Lease shall be deemed amended by deleting the description of the
original Premises and substituting thereof a description of such comparable
space and, if such relocation is to another Office Park Building owned by a
party other than Landlord, by reexecuting the Lease with the owner of such other
Office Park Building being substituted for the Landlord hereunder. Landlord
agrees to pay the reasonable costs of moving Tenant to such other space within
the Building or the park.

10.3 NOTICES FROM ONE PARTY TO THE OTHER.

     All notices required or permitted hereunder shall be in writing and
addressed, if to the Tenant, at Tenant's Address or such other address as Tenant
shall have last designated by notice in writing to Landlord and, if to Landlord,
at Landlord's Address or such other address as Landlord shall have last
designated by notice in writing to Tenant.  Any notice shall have been deemed
duly given if mailed to such address postage prepaid, registered or certified
mail, return receipt requested, when deposited with the U.S. Postal Service, or
if delivered to such address by hand, when so delivered.

10.4 BIND AND INURE.

     The obligations of this Lease shall run with the land, and this Lease shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns, except that the Landlord named herein and
each successive owner of the Premises shall be liable only for the obligations
accruing during the period of its ownership.  The obligations of Landlord shall
be binding upon the assets of Landlord which comprise the Building and the Lot
but not upon other assets of Landlord.  No individual partner, member, trustee,
stockholder, officer, director, employee or beneficiary of Landlord shall be
personally liable under this Lease and Tenant shall look solely to Landlord's
interest in the Building and the Lot in pursuit of its remedies upon an event of
default hereunder, and the general assets of the individual partners, trustees,
stockholders, officers, employees or beneficiaries of Landlord shall not be
subject to levy, execution or other enforcement procedure for the satisfaction
of the remedies of Tenant.

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<PAGE>

10.5 NO SURRENDER.

     The delivery of keys to any employee of Landlord or to Landlord's agent or
any employee thereof shall not operate as a termination of this Lease or a
surrender of the Premises.

10.6 NO WAIVER, ETC.

     The failure of Landlord to seek redress for violation of, or to insist upon
the strict performance of any covenant or condition of this Lease or any of the
Rules and Regulations referred to in Section 6.1.4, whether heretofore or
hereafter adopted by Landlord, shall not be deemed a waiver of such violation
nor prevent a subsequent act, which would have originally constituted a
violation, from having all the force and effect of an original violation, nor
shall the failure of Landlord to enforce any of said Rules and Regulations
against any other tenant in the Building be deemed a waiver of any such Rules or
Regulations.  The receipt by Landlord of Annual Rent or additional rent with
knowledge of the breach of any covenant of this Lease shall not be deemed a
waiver of such breach by Landlord, unless such waiver be in writing and signed
by Landlord.  No consent or waiver, express or implied, by Landlord to or of any
breach of any agreement or duty shall be construed as a waiver or consent to or
of any other breach of the same or any other agreement or duty.

10.7 NO ACCORD AND SATISFACTION.

     No acceptance by Landlord of a lesser sum than the Annual Rent and
additional rent then due shall be deemed to be other than on account of the
earliest installment of such rent due, nor shall any endorsement or statement on
any check or any letter accompanying any check or payment as rent be deemed as
accord and satisfaction, and Landlord may accept such check or payment without
prejudice to Landlord's right to recover the balance of such installment or
pursue any other remedy in this Lease provided.

10.8 CUMULATIVE REMEDIES.

     The specific remedies to which Landlord may resort under the terms of this
Lease are cumulative and are not intended to be exclusive of any other remedies
or means of redress to which it may be lawfully entitled in case of any breach
or threatened breach by Tenant of any provisions of this Lease.  In addition to
the other remedies provided in this Lease,

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<PAGE>

Landlord shall be entitled to the restraint by injunction of the violation or
attempted or threatened violation of any of the covenants, conditions or
provisions of this Lease or to a decree compelling specific performance of any
such covenants, conditions or provisions.

10.9 LANDLORD'S RIGHT TO CURE.

     If Tenant shall at any time default in the performance of any obligation
under this Lease, Landlord shall have the right, but shall not be obligated, to
enter upon the Premises and to perform such obligation, notwithstanding the fact
that no specific provision for such substituted performance by Landlord is made
in this Lease with respect to such default.  In performing such obligation,
Landlord may make any payment of money or perform any other act.  All sums so
paid by Landlord (together with interest at the rate of 4% per annum in excess
of the then prime commercial rate of interest being charged by the three largest
national banks in Boston, Massachusetts) and all necessary incidental costs and
expenses in connection with the performance of any such act by Landlord, shall
be deemed to be additional rent under this Lease and shall be payable to
Landlord immediately on demand.  Landlord may exercise the foregoing rights
without waiving any other of its rights or releasing Tenant from any of its
obligations under this Lease.

10.10 ESTOPPEL CERTIFICATE.

     Tenant agrees, from time to time, upon not less than 15 days' prior written
request by Landlord, to execute, acknowledge and deliver to Landlord a statement
in writing certifying that this Lease is unmodified and in full force and
effect; that Tenant has no defenses, offsets or counterclaims against its
obligations to pay the Annual Rent and additional rent and to perform its other
covenants under this Lease; that there are no uncured defaults of Landlord or
Tenant under this Lease (or, if there have been modifications, that this Lease
is in full force and effect as modified and stating the modifications, and, if
there are any defenses, offsets, counterclaims, or defaults, setting them forth
in reasonable detail); and the dates to which the Annual Rent, additional rent
and other charges have been paid.  Any such statement delivered pursuant to this
Section 10.10 shall be in a form reasonably acceptable to and may be relied upon
by any prospective purchaser or mortgagee of premises which include the Premises
or any prospective assignee of any such mortgagee.

10.11 WAIVER OF SUBROGATION.

                                       40
<PAGE>

      Any insurance carried by either party with respect to the Premises and
property therein or occurrences thereon shall include a clause or endorsement
denying to the insurer rights of subrogation against the other party to the
extent rights have been waived by the insured prior to occurrences of injury or
loss.  Each party, notwithstanding any provisions of this Lease to the contrary,
hereby waives any rights of recovery against the other for injury or loss due to
hazards covered by insurance containing such clause or endorsement to the extent
of the indemnification received thereunder.

10.12 ACTS OF GOD.

      In any case where either party hereto is required to do any act, delays
caused by or resulting from Acts of God, war, civil commotion, fire, flood or
other casualty, labor difficulties, shortages of labor, materials or equipment,
government regulations, unusually severe weather, or other causes beyond such
party's reasonable control shall not be counted in determining the time during
which work shall be completed, whether such time be designated by a fixed date,
a fixed time or a "reasonable time," and such time shall be deemed to be
extended by the period of such delay.

10.13 BROKERAGE.

      Tenant and Landlord represent and warrant that they dealt with no brokers
in connection with this transaction other than the Broker and agree to defend,
with counsel approved by the other, indemnify and save the other harmless from
and against any and all cost, expense or liability for any compensation,
commissions or charges claimed by a broker or agent, other than the Broker in
connection with this Lease.  Landlord hereby agrees to pay the brokerage fees to
the Broker in connection with the execution and delivery of this Lease.

10.14 SUBMISSION NOT AN OFFER.

      The submission of a draft of this Lease or a summary of some or all of its
provisions does not constitute an offer to lease or demise the Premises, it
being understood and agreed that neither Landlord nor Tenant shall be legally
bound with respect to the leasing of the Premises unless and until this Lease
has been executed by both Landlord and Tenant and a fully executed copy has been
delivered to each of them.

                                       41
<PAGE>

10.15 APPLICABLE LAW AND CONSTRUCTION.

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

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

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

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

10.16 AUTHORITY OF TENANT.

      Tenant represents and warrants to Landlord (which representations and
warranties shall survive the delivery of this Lease) that:  (a) Tenant (i) is
duly organized, validly existing and in good standing under the laws of its
state of incorporation, (ii) has the corporate power and authority to carry on
businesses now being conducted and is qualified to do business in every
jurisdiction where such qualification is necessary and (iii) has the corporate
power to execute and deliver and perform its obligations under this Lease and
(b) the execution, delivery and performance by Tenant of its obligations under
this Lease have been duly authorized by all requisite corporate action and will
not

                                       42
<PAGE>

violate any provision of law, any order of any court or other agency of
government, the corporate charter or by-laws of the Tenant or any indenture,
agreement or other instrument to which it is a party or by which it is bound.

ARTICLE XI     SECURITY DEPOSIT

     Simultaneously with Tenant's delivery of the executed Lease to Landlord,
Tenant will deliver the Security Deposit to Landlord, to be held by Landlord, as
security, without interest, for and during the Term, which deposit shall be
returned to Tenant at the termination of this Lease, provided there exists no
default by Tenant or breach of any understanding of Tenant.  Notwithstanding the
foregoing, (a) no later than fifteen (15) days after the sixth (6th) month
anniversary of the Term Commencement Date, the Security Deposit shall be reduced
to $28,622.08 by the return to Tenant of the difference between the Security
Deposit then held by Landlord and $28,622.08, provided that no event of default
by Tenant then exists hereunder, and no condition exists which with the giving
of notice or the passage of time, or both, would constitute an event of default,
and (b) no later than fifteen (15) days after the twenty-fourth (24th) month
anniversary of the Term Commencement Date, the Security Deposit shall be reduced
to $14,311.04 by the return to Tenant of the difference between the Security
Deposit then held by Landlord and $14,311.04 provided that no event of default
by Tenant then exists hereunder, and no condition exists which with the giving
of notice or the passage of time, or both, would constitute an event of default,
and provided further that Tenant provides current financial statements to
Landlord which are acceptable to Landlord in Landlord's sole discretion.  If all
or any part of the Security Deposit is applied to an obligation of Tenant
hereunder, Tenant shall immediately upon request by Landlord restore the
Security Deposit to its original amount.  Tenant shall not have the right to
call upon Landlord to apply all or any part of the Security Deposit to cure any
default or fulfill any obligation of Tenant, but such use shall be solely in the
discretion of Landlord.  Upon any conveyance by Landlord of its interest under
this Lease, the Security Deposit may be delivered by Landlord to Landlord's
grantee or transferee.  Upon any delivery, Tenant hereby releases Landlord
herein named of any and all liability with respect to look solely to such
grantee or transferee.  It is further understood that this provision shall also
apply to subsequent grantees and transferees.

     EXECUTED as a sealed instrument in two or more counterparts on the day and
year first above written.

                                       43
<PAGE>

                              LANDLORD:

                              BRE/CAMBRIDGEPARK OFFICE II L.L.C.,
                              a Delaware limited liability company

                              By:________________________________

                              TENANT:

                              PRIME RESPONSE GROUP, INC.

                              By:________________________________
                                 Name:
                                 Title:
                                 Hereunto duly authorized

                                       44
<PAGE>

                                   EXHIBIT A

                            Description of the Lot

     That certain parcel of land with buildings thereon situated in Cambridge,
Middlesex County, Massachusetts, shown as Lot A on plan entitled "Subdivision
Plan of Land Cambridge, Mass." Scale 1" - 60', dated February 27, 1985, prepared
by Harry R. Feldman, Inc. recorded with Middlesex South Registry of Deeds as
Plan No. 1038 of 1985 more particularly bounded and described as follows:

     Northerly by CambridgePark Drive, four hundred seventy-three and 70/100
(473.70) feet;

     Easterly by Lot B as shown on said plan, two hundred sixty-two and 50/100
(262.50) feet;

     Southerly by said Lot B, sixteen and 70/100 (16.70) feet;

     Easterly again by said Lot.B, one hundred ten (110.00) feet;

     Southerly again by said Lot B, by three lines of two hundred twenty-two and
24/100 (222.24) feet, two hundred eighteen and 12/100 (218.12) feet and twenty-
three and 28/100 (23.28) feet; and

     Westerly by said Lot B, two hundred ninety-five and 15/100 (295.15) feet.

     Containing according to said plan 158,215 square feet.

<PAGE>

                                   EXHIBIT C
                              LANDLORD'S SERVICES
I.   CLEANING

     A.   GENERAL

          1.   All cleaning work will be performed between 8 a.m. and 12
               midnight, Monday through Friday, unless otherwise necessary for
               stripping, waxing, etc.

          2.   Abnormal waste removal (e.g., computer installation paper, bulk
               packaging, wood or cardboard crates, refuse from cafeteria
               operation, etc.) shall be Tenant's responsibility.

     B.   DAILY OPERATIONS (5 TIMES PER WEEK)

          1. Tenant Areas

               a.   Empty and clean all waste receptacles; wash receptacles as
                    necessary.
               b.   Vacuum all rugs and carpeted areas.
               c.   Empty, damp-wipe and dry all ashtrays.

          2. Lavatories

               a.   Sweep and wash floors with disinfectant.
               b.   Wash both sides of toilet seats with disinfectant.
               c.   Wash all mirrors, basins, bowls, urinals.
               d.   Spot clean toilet partitions.
               e.   Empty and disinfect sanitary napkin disposal receptacles.
               f.   Refill toilet tissue, towel, soap, and sanitary napkin
                    dispensers.

          3. Public Areas

               a.   Wipe down entrance doors and clean glass (interior and
                    exterior).
               b.   Vacuum elevator carpets and wipe down doors and walls.
               c.   Clean water coolers.

                                      C-1
<PAGE>

     C.   OPERATIONS AS NEEDED (BUT NOT LESS THAN EVERY OTHER DAY)

          1.   Tenant and Public Areas

               a.   Buff all resilient floor areas.

     D.   WEEKLY OPERATIONS

          1. Tenant Areas, Lavatories, Public Areas

               a.   Hand-dust and wipe clean all horizontal surfaces with
                    treated cloths to include furniture, office equipment,
                    window sills, door ledges, chair rails, baseboards,
                    convector tops, etc., within normal reach.
               b.   Remove finger marks from private entrance doors, light
                    switches, and doorways.
               c.   Sweep all stairways.

     E.   MONTHLY OPERATIONS

          1.   Tenant and Public Areas

               a.   Thoroughly vacuum seat cushions on chairs, sofas, etc.
               b.   Vacuum and dust grillwork.

          2.   Lavatories

               a.   Wash down interior walls and toilet partitions.

     F.   AS REQUIRED AND WEATHER PERMITTING

          1.   Entire Building

               a.   Clean inside of all windows.
               b.   Clean outside of all windows.

     G.   YEARLY

          1.   Public Areas

               a.   Strip and wax all resilient tile floor areas.

                                      C-2
<PAGE>

II.  HEATING, VENTILATING, AND AIR CONDITIONING

          1.   Heating, ventilating, and air conditioning as required to provide
               reasonably comfortable temperatures for normal business day
               occupancy (excepting holidays); Monday through Friday from 8:00
               a.m. to 6:00 p.m. and Saturday from 8:00 a.m. to 1:00 p.m.

          2.   Maintenance of any additional or special air conditioning
               equipment and the associated operating cost will be at Tenant's
               expense, which is estimated at $50 per hour.

III. WATER

               Hot water for lavatory purposes and cold water for drinking,
               lavatory and toilet purposes, and cold water for Tenant's kitchen
               and Tenant's hot water heater (Tenant is to supply hot water
               heater).

IV.  ELEVATORS (IF BUILDING IS ELEVATORED)

               Elevators for the use of all tenants and the general public for
               access to and from all floors of the Building.  Programming of
               elevators (including, but not limited to, service elevators)
               shall be as Landlord from time to time determines best for the
               Building as a whole.

V.   RELAMPING OF LIGHT FIXTURES

               Tenant will reimburse Landlord for the cost of lamps, ballasts
               and starters and the cost of replacing same within the Premises.

VI.  CAFETERIA AND VENDING INSTALLATIONS

          1.   Any space to be used primarily for lunchroom or cafeteria
               operation shall be Tenant's responsibility to keep clean and
               sanitary, it being understood that Landlord's approval of such
               use must be first obtained in writing.

          2.   Vending machines or refreshment service installations by Tenant
               must be approved by Landlord in writing and shall be restricted
               in use to employees and business callers.
                                      C-3
<PAGE>

               All cleaning necessitated by such installations shall be at
               Tenant's expense.

VII  ELECTRICITY

     A.   Landlord, at Landlord's expense, shall furnish electrical energy
          required for lighting, electrical facilities, equipment, machinery,
          fixtures, and appliances used in or for the benefit of the Premises,
          in accordance with the provisions of the Lease of which this Exhibit
          is part.

     B.   Tenant shall not, without prior written notice to Landlord in each
          instance, connect to the Building electric distribution system any
          fixtures, appliances or equipment other than normal office machines
          such as personal computers, desk-top calculators and typewriters, or
          any fixtures, appliances or equipment which Tenant on a regular basis
          operates beyond normal building operating hours. In the event of any
          such connection, Tenant agrees to an increase in the ANNUAL ESTIMATED
          ELECTRICAL COST TO THE PREMISES and a corresponding increase in Annual
          Rent by an amount which will reflect the cost to Landlord of the
          additional electrical service to be furnished by Landlord, such
          increase to be effective as of the date of any such installation. If
          Landlord and Tenant cannot agree thereon, such amount shall be
          conclusively determined by a reputable independent electrical engineer
          or consulting firm to be selected by Landlord and paid equally by both
          parties, and the cost to Landlord will be included in Landlord's
          Operating Costs provided in Section 4.2 hereof.

     C.   Tenant's use of electrical energy in the Premises shall not at any
          time exceed the capacity of any of the electrical conductors or
          equipment in or otherwise serving the Premises. In order to insure
          that such capacity is not exceeded and to avert possible adverse
          effect upon the Building electric service, Tenant shall not, without
          prior written notice to Landlord in each instance, connect to the
          Building electric distribution system any fixtures, appliances or
          equipment which operate on a voltage in excess of 120 volts nominal or
          make any alteration or addition to the electric system of the
          Premises. Unless Landlord shall reasonably object to the connection of
          any such fixtures, appliances or equipment, all additional risers or
          other equipment required therefor shall be provided by Landlord, and
          the cost thereof shall be paid by Tenant upon Landlord's

                                      C-4
<PAGE>

          demand. In the event of any such connection, Tenant agrees to an
          increase in the ANNUAL ESTIMATED ELECTRICAL COST TO THE PREMISES such
          increase to be effective as of the date of any such connection. If
          Landlord and Tenant cannot agree thereon, such amount shall be
          conclusively determined by a reputable independent electrical engineer
          or consulting firm to be selected by Landlord and paid equally by both
          parties, and the cost to Landlord will be included in Landlord's
          Operating Costs provided in Section 4.2 hereof.

     D.   If at any time after the date of this Lease, the rates at which
          Landlord purchases electrical energy from the public utility supplying
          electric service to the Building, or any charges incurred or taxes
          payable by Landlord in connection therewith, shall be increased or
          decreased, the ANNUAL ESTIMATED ELECTRICAL COST TO THE PREMISES shall
          be increased or decreased, as the case may be, by an amount equal to
          the estimated increase or decrease, as the case may be, in Landlord's
          cost of furnishing the electricity referred to in Paragraph A above as
          a result of such increase or decrease in rates, charges, or taxes. If
          Landlord and Tenant cannot agree thereon, such amount shall be
          conclusively determined by a reputable independent electrical engineer
          or consulting firm to be selected by Landlord and paid equally by both
          parties, and the cost to Landlord will be included in Landlord's
          Operating Costs as provided in Section 4.2 hereof. Any such increase
          or decrease shall be effective as of the date of the increase or
          decrease in such rate, charge or taxes.

     E.   Landlord may, at any time, elect to discontinue the furnishing of
          electrical energy. In the event of any such election by Landlord: (1)
          Landlord agrees to give reasonable advance notice of any such
          discontinuance to Tenant; (2) Landlord agrees to permit Tenant to
          receive electrical service directly from the public utility supplying
          service to the Building and to permit the existing feeders, risers,
          wiring and other electrical facilities serving the Premises to be used
          by Tenant and/or such public utility for such purpose to the extent
          they are suitable and safely capable; (3) Landlord agrees to pay such
          charges and costs, if any, as such public utility may impose in
          connection with the installation of Tenant's meters and to make or, at
          such public utility's election, to pay for such other installations as
          such public utility may require, as a condition of providing
          comparable electrical service to Tenant; and (4) Tenant shall

                                      C-5

          thereafter pay, directly to the utility furnishing the same, all
          charges for electrical services to the Premises.

                                      C-6
<PAGE>

                                   EXHIBIT D

                             RULES AND REGULATIONS

     The following rules and regulations have been formulated for the safety and
well-being of all tenants of the Building and to insure compliance with
governmental and other requirements.  Strict adherence to these rules and
regulations is necessary to guarantee that each and every tenant will enjoy a
safe and undisturbed occupancy of its premises in the Building.  Any continuing
violation of these rules and regulations by Tenant shall constitute a default by
Tenant under the Lease.

     Landlord may, upon request of any tenant, waive the compliance by such
tenant of any of the following rules and regulations, provided that (i) no
waiver shall be effective unless signed by Landlord's authorized agent, (ii) any
such waiver shall not relieve such tenant from the obligation to comply with
such rule or regulation in the future unless otherwise agreed to by Landlord,
(iii) no waiver granted to any tenant shall relieve any other tenant from the
obligation of complying with these rules and regulations, unless such other
tenant has received a similar written waiver from the Landlord, and (iv) any
such waiver shall not relieve Tenant from any liability to Landlord for any loss
or damage occasioned as a result of Tenant's failure to comply with any rule or
regulation

     1.   The entrances, lobbies, passages, corridors, elevators, halls, courts,
          sidewalks, vestibules, and stairways shall not be encumbered or
          obstructed by Tenant, Tenant's agents, servants, employees, licensees
          or visitors or used by them for any purposes other than ingress or
          egress to and from the Premises. Landlord shall have the right to
          control and operate portions of the Building and the facilities
          furnished for common use of the tenants in such manner as Landlord
          deems best for the benefit of the tenants generally.

     2.   The moving in or out of all safes, freight, furniture, or bulky matter
          of any description shall take place during the hours which Landlord
          may determine from time to time. Landlord reserves the right to
          inspect all freight and bulky matter to be brought into the Building
          and to exclude from the Building all freight and bulky matter which
          violates any of these Rules and Regulations or the Lease of which
          these Rules and Regulations are a part. Landlord reserves the right to
          have Landlord's structural engineer review Tenant's floor loads on the
          Premises at Tenant's expense.

                                      D-1

<PAGE>

     3.   Tenant, or the employees, agents, servants, visitors or licensees of
          Tenant shall not at any time place waste or discard any rubbish,
          paper, articles, or objects of any kind whatsoever outside the doors
          of the Premises or in the corridors or passageways of the Building. No
          animals or birds shall be brought or kept in or about the Building.
          Bicycles shall not be permitted in the Building.

     4.   Tenant shall not place objects against glass partitions or doors or
          windows or adjacent to any common space which would be unsightly from
          the Building corridors or from the exterior of the Building and will
          promptly remove the same upon notice from Landlord.

     5.   Tenant shall not make noises, cause disturbances, create vibrations,
          odors (other than ordinarily acceptable tenant kitchen odors in the
          building) or noxious fumes or use or operate any electric or
          electrical devices or other devices that emit sound waves or are
          dangerous to other tenants and occupants of the Building or that would
          interfere with the operation of any device or equipment or radio or
          television broadcasting or reception from or within the Building or
          elsewhere, or with the operation of roads or highways in the vicinity
          of the Building, and shall not place or install any projections,
          antennae, aerials, or similar devices inside or outside of the
          Premises, without the prior written approval of Landlord.

     6.   Tenant may not (without Landlord's approval therefor, which approval
          will be signified on Tenant's Plans submitted pursuant to the Lease)
          and Tenant shall not permit or suffer anyone to: (a) cook in the
          Premises except as accessory to the use of a coffee room/kitchenette
          containing a microwave oven; (b) place vending or dispensing machines
          of any kind in or about the Premises; (c) at any time sell, purchase
          or give away, or permit the sale, purchase, or gift of food in any
          form.

     7.   Tenant shall not: (a) use the Premises for lodging, manufacturing or
          for any immoral or illegal purposes; (b) use the Premises to engage in
          the manufacture or sale of, or permit the use of spirituous,
          fermented, intoxicating or alcoholic beverages on the Premises; (c)
          use the Premises to engage in the manufacture or sale of, or permit
          the use of, any illegal drugs on the Premises.

                                      D-2
<PAGE>

     8.   No awning or other projections (including antennae) shall be attached
          to the outside walls or windows. No curtains, blinds, shades, screens
          or signs other than those furnished by Landlord shall be attached to,
          hung in, or used in connection with any window or door of the Premises
          without prior written consent of Landlord.

     9.   No signs, advertisement, object, notice or other lettering shall be
          exhibited, inscribed, painted or affixed on any part of the outside or
          inside of the Premises if visible from outside of the Premises.
          Interior signs on doors shall be painted or affixed for Tenant by
          Landlord or by sign painters first approved by Landlord at the expense
          of Tenant and shall be of a size, color and style acceptable to
          Landlord.

    10.   Tenant shall not use the name of the Building or use pictures or
          illustrations of the Building in advertising or other publicity
          without prior written consent of Landlord. Landlord shall have the
          right to prohibit any advertising by Tenant which, in Landlord's
          opinion, tends to impair the reputation of the Building or its
          desirability for offices, and upon written notice from Landlord,
          Tenant will refrain from or discontinue such advertising.

    11.   Door keys for doors in the Premises will be furnished at the
          Commencement of the Lease by Landlord. Tenant shall not affix
          additional locks on doors and shall purchase duplicate keys only from
          Landlord and will provide to Landlord the means of opening of safes,
          cabinets, or vaults left on the Premises. In the event of the loss of
          any keys so furnished by Landlord, Tenant shall pay to Landlord the
          cost thereof. Each tenant shall, upon the termination of its tenancy,
          restore to Landlord all keys of offices, storage and toilet rooms
          either furnished to, or otherwise procured by, such tenant.

    12.   Tenant shall cooperate and participate in all security programs
          affecting the Building.

    13.   Tenant assumes full responsibility for protecting its space from
          theft, robbery and pilferage, which includes keeping doors locked and
          other means of entry to the Premises closed and secured.

    14.   Tenant shall not make any room-to-room canvass to solicit business
          from other tenants in the Building, and shall not

                                      D-3
<PAGE>

          exhibit, sell or offer to sell, use, rent or exchange any item or
          services in or from the Premises unless ordinarily embraced within
          Tenant's use of the Premises as specified in its Lease. Canvassing,
          soliciting and peddling in the Building are prohibited and Tenant
          shall cooperate to prevent the same. Peddlers, solicitors and beggars
          shall be reported to the Management Office.

    15.   Tenant shall not mark, paint, drill into, or in any way deface any
          part of the Building or Premises. No boring, driving of nails or
          screws (except for picture hanging, etc.), cutting or stringing of
          wires shall be permitted, except with the prior written consent of
          Landlord, and as Landlord may direct. Tenant shall not construct,
          maintain, use or operate within their respective premises any
          electrical device, wiring or apparatus in connection with a loud
          speaker system or other sound system, except as reasonably required as
          part of a communication system approved in writing by Landlord, prior
          to the installation thereof. Tenant shall not install any resilient
          tile or similar floor covering in the Premises except with the prior
          written approval of Landlord. The use of cement or other similar
          adhesive material is expressly prohibited.

    16.   Tenant shall not waste electricity or water and agrees to cooperate
          fully with Landlord to assure the most effective operation of the
          Building's heating and air conditioning and shall refrain from
          attempting to adjust controls. Tenant shall keep corridor doors dosed
          except when being used for access.

    17.   The water and wash closets and other plumbing fixtures shall not be
          used for any purposes other than those for which they were
          constructed, and no sweepings, rubbish, rags, or other substances
          shall be thrown therein. All damage resulting from misuse of said
          fixtures shall be borne by the tenant who, or whose servant,
          employees, agents, licensees, invitees, customers or guests shall have
          caused the same.

    18.   Building employees shall not be required to perform, and shall not be
          requested by any tenant or occupant to perform, any work outside of
          their regular duties, unless under specific instructions from the
          office of the Managing Agent of the Building. The requirements of
          tenants will be attended to only upon application to Landlord, and any
          special requirements shall be billed to Tenant (and paid when the next
          installment of

                                      D-4
<PAGE>

          rent is due) in accordance with the schedule of charges maintained by
          Landlord from time to time or at such charge as is agreed upon in
          advance by Landlord and Tenant.

    19.   Tenant may request heating and/or air conditioning during other
          periods in addition to normal working hours by submitting its request
          in writing to the office of the Managing Agent of the Building no
          later than 2:00 p.m. the preceding work day (Monday through Friday) on
          forms available from the office of the Managing Agent. The request
          shall clearly state the start and stop hours of the "off-hour"
          service. Tenant shall submit to the Building Manager a list of
          personnel authorized to make such request. The Tenant shall be charged
          for such operation in the form of additional rent; such charges are to
          be determined by the Managing Agent and shall be fair and reasonable
          and reflect the additional operating costs involved.

    20.   Tenant covenants and agrees that its use of the Premises shall not
          cause a discharge of more than the gallonage per foot of Premises
          Design Floor Area per day of sanitary (non-industrial) sewage allowed
          under the sewage discharge permit for the Building. Discharges in
          excess of that amount, and any discharge of industrial sewage, shall
          only be permitted if Tenant, at its sole expense, shall have obtained
          all necessary permits and licenses therefor, including without
          limitation permits from state and local authorities having
          jurisdiction thereof. Tenant shall submit to Landlord on December 31
          of each year of the Term of this Lease a statement, certified by an
          authorized officer of Tenant, which contains the following
          information: name of all chemicals, gases, and hazardous substances,
          used, generated, or stored on the Premises; type of substance (liquid,
          gas or granular); quantity used, stored or generated per year; method
          of disposal; permit number, if any, attributable to each substance,
          together with copies of all permits for such substances; and permit
          expiration date for each substance. No flammable, combustible or
          explosive fluid, chemical or substance shall be brought into or kept
          upon the Premises, the Building or the Lot (other than those fluids or
          chemicals customarily used by tenants of other first-class office
          buildings in connection with office purposes and then only those types
          and quantities permitted under Landlord's policies of insurance for
          the Building).

                                      D-5
<PAGE>

    21.   Landlord reserves the right to exclude from the Building at all times
          any person who is not known or does not properly identify himself to
          the Building management. Landlord may, at its option, require all
          persons admitted to or leaving the Building between the hours of 6:00
          p.m. and 8:00 a.m., Monday through Friday, and at any hour on
          Saturdays, Sundays and legal holidays, to register. Each tenant shall
          be responsible for all persons for whom it authorizes entry into the
          Building, and shall be liable to Landlord for all acts or ornissions
          of such persons.

    22.   Landlord reserves the right to inspect all freight to be brought into
          the Building and to exclude from the Building all freight which
          violates any of these rules and regulations. There shall not be used
          in any space or in the common halls of the Building, either by any
          tenant or by jobbers or others in the delivery or receipt of
          merchandise, any hand trucks, except those equipped with rubber tires
          and side guards.

                                      D-6<PAGE>

                                                                   Exhibit 10.47
          [LETTERHEAD OF COLLINS STREET BUSINESS CENTER APPEARS HERE]

________________________________________________________________________________

                        COLLINS STREET BUSINESS CENTRE

                          SERVICED OFFICES AGREEMENT

                                    BETWEEN

                     MERDENE PTY LTD (A.C.N. 052 404 690)

                   trading as COLLINS STREET BUSINESS CENTRE

                                  The Manager

                                      AND

                            PRIME RESPONSE PTY LTD
                             (A.C.N. 082 682 451)

                                  The Tenant

                                  SIX MONTHS
                               24 November, 1999

________________________________________________________________________________
<PAGE>

                         COLLINS STREET BUSINESS CENTRE

                           SERVICED OFFICES AGREEMENT

BETWEEN
-------

MERDENE PTY LTD (A.C.N. 052 404 690) (trading as COLLINS STREET BUSINESS CENTRE)
of Level 8, 350 Collins Street, Melbourne 3000 (the "Manager")

AND
---

THE TENANT whose name and address appear in the Schedule under the heading of
Tenant.

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

WHEREAS:
-------

The Manager wishes to licence to and the Tenant wishes to accept such licence of
the Premises set out in the Schedule on the terms and conditions of this
Agreement.

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

THE PARTIES AGREE AS FOLLOWS:
----------------------------

Premises, Services, Term and Rent
---------------------------------

1.   The Manager hereby licences to the Tenant the premises and any Furniture
     specified in the Schedule for the Term and at the Rent also specified in
     the Schedule.

2.   The Manager shall also provide to the Tenant a telephone answering and
     reception service between 8:30 a.m. and 5:30 p.m. Monday to Friday
     excluding public holidays, together with any Services specified in the
     Schedule.  The Tenant shall give the Manager one month's notice of any
     intention to cease or vary use by the Tenant of any of the Services.

3.   Where the Manager has provided any of the Services to the Tenant, the
     Manager shall issue monthly invoices in arrears which shall be paid by the
     Tenant within 7 days of receipt.

4.   The Premises shall only be used for the purpose of conducting a legal and
     reputable business or profession.

5.   The Tenant shall have exclusive possession of the Premises for the Term,
     without unreasonable interference by the Manager.

Access
------

6.   The Tenant shall have access to the Premises from the commencement of the
     Term as set out in the Schedule 24 hours a day, 365 days a year.  Any
     access by the Tenant outside normal business hours shall be restricted to
     the Tenant, persons accompanied by the Tenant or persons authorised by the
     Tenant and for which the Tenant has first obtained permission for their
     access from the Manager.
<PAGE>

Serviced Offices Agreement             3                 Prime Response Pty Ltd
-------------------------------------------------------------------------------

7.   The Manager shall have access to the Premises for the purposes of
     inspection or repair upon reasonable notice to the Tenant, but may enter
     the Premises without such notice in the case of emergency, or if the
     Manager has reasonable cause to believe the Tenant has abandoned the
     Premises.

Manager's Obligation
--------------------

8.   The Manager shall:-

     (a)  ensure the Premises and any equipment is in good condition at the
          commencement of and for the duration of the Term, and that there is
          adequate security for the Premises;

     (b)  ensure the Premises are adequately insured against public liability,
          fire and theft and;

     (c)  promptly pay all applicable rates, taxes and other outgoings relating
          to the Premises, excluding telephone charges.

Tenant's Obligations
--------------------

9.   The Tenant shall:

     (a)  attend to prompt payment of Rent and any invoices for Services in
          accordance with the terms and conditions of this Agreement, and shall
          be responsible for insuring his assets and possessions on the
          Premises;

     (b)  obtain at the Tenant's own expense any necessary consents for the
          purpose of running the Tenant's business at the Premises, together
          with arranging for rental and payment of any telephone lines and calls
          (the Tenant may install up to 2 lines per office);

     (c)  take care of the Premises and ensure the Premises are kept in a tidy
          and clean condition and upon termination of this Agreement to
          peaceably surrender the Premises to the Manager in such condition,
          fair wear and tear excepted;

     (d)  not make any alterations or additions to the Premises without the
          Manager's consent in writing, including placement of any sign or
          advertisement either inside or outside the Premises;

     (e)  notify the Manager immediately upon becoming aware of any loss or
          damage or defect to the Premises, or anything which may affect the
          Manager's insurance over the Premises;

     (f)  not obstruct or interfere with any of the common areas or any of the
          other Tenants in their business activities, and not sleep or hold any
          auctions on the Premises;

     (g)  not directly air any matter of concern relating to the Premises or the
          Manager directly with the Manager's employees, either in public or
          private, but shall instead take up such matter direct with the Manager
          by appointment or by letter addressed to the Manager;

<PAGE>

Serviced Offices Agreement             4                 Prime Response Pty Ltd
-------------------------------------------------------------------------------

     (h)  not keep on the Premises any oils, greases, hazardous chemicals or
          other noxious substances, any animals, birds or fish and shall ensure
          all rubbish is regularly removed; and

     (i)  ensure that all agents, officers and employees of the Tenant are aware
          of and observe the Tenant's obligations under this Agreement, and if
          the Tenant comprises of two or more persons their obligations under
          this Agreement shall be joint and several.

Mutual Obligations
------------------

10.  The Manager and the Tenant shall:

     (a)  keep the terms and conditions of this Agreement confidential and shall
          not disclose any information relating to those terms and conditions to
          any third party, unless the consent of the other is first obtained in
          writing;

     (b)  hereby indemnify the other and shall keep the other indemnified from
          and against any loss or damage to the Premises, any person's property
          or any person through injury or death, caused as a result of any
          accident, neglect or deliberate or careless act of such party on the
          Premises or resulting from any breach by such party of the terms and
          conditions of this Agreement (but the Manager shall not be responsible
          for any loss or damage incurred by the Tenant from provision by the
          Manager of cleaning services); and

     (c)  if the Premises for any reason beyond the control of the parties
          becomes unfit for use or occupation, terminate this Agreement
          immediately by notice in writing from one to the other, without
          compensation payable between them.

Option for Renewal
------------------

11.  If an Option period is specified in the Schedule, the Tenant shall have the
     right to extend the Term for that period, provided the Tenant gives to the
     Manager at least one month's notice in writing of the Tenant's desire to
     exercise the Option, and has paid all monies owning to the Manager under
     this Agreement to the date of giving notice.

12.  The terms and conditions of this Agreement shall apply to any extended
     period, subject to the Manager reasonably determining a new rent in
     accordance with the current market conditions.

Security Deposit
----------------

13.  The Tenant shall pay to the Manager the Security amount specified in the
     Schedule before commencing the Term, for security against default by and
     liability for payment of monies owing to the Manager under this Agreement.

14.  The Manager shall be entitled to deduct from the Security any monies owed
     to the Manager for Rent or provision of Services under this Agreement, or
     otherwise as a result of a breach of this Agreement by the Tenant.

15.  The Security, or any remaining portion of it, shall be refunded to the
     Tenant within 7 days of the termination of this Agreement.

<PAGE>

Serviced Offices Agreement             5                 Prime Response Pty Ltd
-------------------------------------------------------------------------------

Repairs
-------

16.  The Tenant shall in a prompt manner repair in full any damage to the
     Premises resulting from neglect, omission or a deliberate or careless act
     or a breach of a term or condition of this Agreement by the Tenant.

Early Termination
-----------------

17.  Where a party is of the view that the other (the "Defaulting Party") is in
     breach of this Agreement or is otherwise performing its obligations under
     this Agreement in an unsatisfactory manner, it may give notice in writing
     to the Defaulting Party requesting a remedy of such breach or
     unsatisfactory performance within 7 days of the date of the notice, failing
     which that party may immediately terminate this Agreement and pursue
     remedies available to it at law.

18.  Upon such early termination, the Tenant shall peaceably vacate the
     Premises, and the Security shall be refunded less any amounts duly deducted
     by the Manager in accordance with this Agreement.

Holding Over
------------

19.  Where leases of the Premises continues beyond the Term and any Option
     period, the terms and conditions of this Agreement shall apply until such
     time as either the Tenant or the Manager gives not less than one month's
     notice in writing to the other of that party's intention to terminate this
     Agreement.

Costs
-----

20.  The reasonable costs of both the Manager and the Tenant in preparing this
     Agreement and any necessary stamp duty shall be paid by the Tenant.

Keys
----

21.  The Tenant shall receive one set of keys to the Premises free of charge.
     Additional sets of keys are available on request at a charge of $20,
     refundable upon return for the keys during the Term or upon termination of
     this Agreement.

22.  All keys remain the property of the Manager.

Assignment
----------

23.  The Manager may assign his rights and obligations under this Agreement to a
     third party without the consent of the Tenant, while the Tenant may only
     assign his rights and obligations with the consent of the Manager in
     writing.

Notices
-------

24.  Any written notice served by a party under this Agreement is deemed to be
     duly served if delivered by hand or mailed:-

     (a)  in the case of Tenant, at the Premises; and

     (b)  in the case of the Manager, also at the Premises.

<PAGE>

Serviced Offices Agreement             6                 Prime Response Pty Ltd
-------------------------------------------------------------------------------

Headlease
---------

25.  The Tenant shall comply with all applicable terms and conditions of the
     Manager's Headlease with respect to the Premises, a copy of which the
     Tenant acknowledges receiving at or prior to the date of execution of this
     Agreement (less details of any financial provisions contained in the
     Headlease).

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

THE PARTIES HEREBY ENTER INTO THIS AGREEMENT ON THE DATE FIRST APPEARING IN THE
-------------------------------------------------------------------------------
SCHEDULE.
--------

The Manager

The Common Seal of MERDENE PTY LTD }
is hereunto affixed in accordance  }              (SEAL)
with its Articles of Association   }
in the presence of:                }

/s/ J.R. Lacey                                /s/ Susan Lacey
_________________________________             __________________________________
Secretary                                     Director

J.R. Lacey                                    Susan Lacey
_________________________________             __________________________________
Print Name                                    Print Name

The Tenant

The Common Seal of THE TENANT              }
is hereunto affixed in accordance with its }
Articles of Association in the presence of:}

/s/ Nigel Cannings                            /s/ Brain Rowe
---------------------------------             ----------------------------------
Secretary                                     Director

Nigel Cannings                                Brain Rowe
---------------------------------             ----------------------------------
Print Name                                    Print Name
<PAGE>

Serviced Offices Agreement              7                Prime Response Pty Ltd
-------------------------------------------------------------------------------

                                    SCHEDULE

AGREEMENT SIGNED: the             day of              , 1999.
----------------

TENANT:             PRIME RESPONSE PTY LTD
------
                    (A.C.N. 082 682 451)
                    of Level 8, 350 Collins Street, Melbourne 3000

PREMISES:           Suite 2 and Office Number 1.3 of Suite 1 at Level 8 (North),
--------
                    350 Collins Street, Melbourne, Victoria, together with
                    shares use of waiting room at reception, kitchen, toilet and
                    bathroom facilities, and other common floor areas, as
                    indicated on the attached floor plan.

RENT:               $4,585.00 per calendar month in advance, payable as the
----
                    Manager shall direct on the first day of each calendar month
                    and for any part of a month a payment proportionate to that
                    part, which Rent includes the provision of services
                    described in Clause 2 and all outgoings for rates, taxes,
                    insurance premiums, cleaning and like charges, but excludes
                    telephone line rentals and call charges, and any car parking
                    arrangement.

                    Offices rented on a monthly basis are subject to rent
                    increases upon the giving of one month's notice.

TERM:               Commencing 25/th/ May, 1999, and terminating 24/th/
----
                    November, 1999.

OPTION:             Monthly
------

SECURITY:           $Nil
--------

FURNITURE:          Three Desks
---------
                    Three Credenza's
                    Three 3 Draw Pedestal's
                    Three 3 Draw Filing Cabinet's
                    Three Executive Chairs
                    Six Visitor Chairs

SERVICES:           Telephone handset         Provided at no charge
--------

                    Additional Furniture }
                    Photocopying         }    At market rates
                    Secretarial Services }    determined by the Manager
                    Boardroom Rental     }
                    Use of Fax           }

<PAGE>

                           [FLOORPLAN APPEARS HERE]
<PAGE>

                        Australian Securities Commission
                                Corporations Law

                                   Memorandum
                                      and
                            Articles of Association

                                       OF

                             PRIME RESPONSE PTY LTD
                              A.C.N.. 082 682 451

                                    [LOGO]

-------------------------------------------------------------------------------
                       Melbourne Law Searches Pty, Ltd.
                              A.C.N. 050 239 417

          Level 11 C.U. Tower, 485 La Trobe Street Melbourne Vic 3000
-------------------------------------------------------------------------------
<PAGE>

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

                                                            ----------------
                                                                 Form 204
PANNELL KERR FORSTER
ATTN: JAN GORING
GPO BOX 5099BB
MELBOURNE VIC 3001

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

Certificate of Registration                                      [SEAL]
of a Company                                                   AUSTRALIAN
                                                               SECURITIES
                                                               COMMISSION
Corporations Law Sub-section 121(1)

This is to certify that

PRIME RESPONSE PTY. LTD.

Australian Company Number 082 682 451

is a registered company under Division 1 of Part 2.2 of the
Corporations Law of Victoria and because
of its registration it is an incorporated company.

The company is limited by shares.

The company is a proprietary company.

The day of commencement of registration is
the nineteenth day of May, 1998.

                              Given under the seal of the
                              Australian Securities Commission
                              on this nineteenth day of May, 1998.

[Seal]

          /s/ Alan Cameron

          Alan Cameron
          Chairman

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