EXHIBIT 10.9



                                                                      

        STANDARD INDUSTRIAL/COMMERCIAL MULTI-TENANT LEASE--MODIFIED NET
                  AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION


1. BASIC PROVISIONS ("BASIC PROVISIONS").

   1.1 PARTIES: This Lease ("Lease"), dated for reference purposes only, March
11, 1997, is made by and between High Tech No. 1, LTD.  ("LESSOR")  and Advanced
Photonix,  Inc.  ("LESSEE"),  (collectively  the  "PARTIES," or  individually  a
"PARTY").

   1.2(a) PREMISES: That Building, including all improvements therein or to be
constructed and provided by Lessor under the terms of this Lease, commonly known
by the street address  of1240 Avenida Acaso,  located In the City of Camarillo ,
County of Ventura,  State of  California  , with zip code 93012,  as outlined on
Exhibit A attached hereto ("PREMISES").  The "BUILDING" is that certain building
containing the Premises and generally  described as (describe briefly the nature
of  the  Building):   Approximately  38,948  sq.  ft.,  a  potion  of  a  larger
approximately  67,203  sq.  ft.  M-1  building  further  described  in Exhibit A
attached  hereto  and made a part  hereof  by this  reference.  In  addition  to
Lessee's rights to use and occupy the Premises as hereinafter specified,  Lessee
shall have non-exclusive rights to the Common Areas (as defined in Paragraph 2.7
below) as  hereinafter  specified,  but  shall not have any  rights to the roof,
exterior walls or utility  raceways of the Building or to any other buildings in
the Industrial  Center. The Premises,  the Building,  the Common Areas, the land
upon which they are located,  along with all other  buildings  and  improvements
thereon,  are herein collectively  referred to as the "INDUSTRIAL CENTER." (Also
see Paragraph 2.)

     1.2(b)  PARKING:  One  Hundere  (100)  unreserved  vehicle  parking  spaces
("UNRESERVED PARKING SPACES");  and 0 reserved vehicle parking spaces ("Reserved
Parking Spaces"). (Also see Paragraph 2.6.)

     1.3 TERM: 6 years and 0 months  ("ORIGINAL  TERM") commencing March 1, 1998
("COMMENCEMENT  DATE") and ending February 29, 2004 ("EXPIRATION  DATE").  (Also
see Paragraph 3.)

   1.5 BASE RENT: $24,686.29 per month ("BASE RENT"), payable on the 1st day of
each month commencing March 1, 1998. (Also see Paragraph 4.)

[x] If this box is checked, this Lease provides for the Base Rent to be adjusted
per Addendum 1 attached hereto.

   1.6(a)  BASE RENT PAID UPON EXECUTION: n/a as Base Rent for the period
March 1, 1998 - March 31, 1998.

     1.6(b)  LESSEE'S SHARE OF COMMON AREA OPERATING  EXPENSES:  fifty-seven and
96/100  percent  (57.96%)("LESSEE'S  SHARE") as determined by [x] prorata square
footage of the Premises as compared to the total square  footage of the Building
or [ ] other criteria as described in Addendum __________.

  1.7 SECURITY DEPOSIT: $23,564.00 ("SECURITY DEPOSIT"). (Also see Paragraph 5.)

   1.8 PERMITTED USE: Optical sensor,  general  manufacturing,  general office
purposes and related activities ("PERMITTED USE") (Also see Paragraph 6.)

   1.9 INSURING PARTY. Lessor is the "INSURING PARTY." (Also see Paragraph 8.)

   1.12 ADDENDA AND  EXHIBITS.  Attached  hereto is an Addendum  consisting of
paragraphs  49 through 52 and  Exhibits A through B, all of which  constitute  a
part of this Lease.

2. PREMISES, PARKING AND COMMON AREAS.

   2.1 LETTING. Lessor hereby leases to Lessee, and Lessee hereby leases from
Lessor, the Premises, for the term, at the rental, and upon all of the terms,
covenants and conditions set forth in this Lease. Unless otherwise provided
herein, any statement of square footage set forth in this Lease, or that may
have been used in calculating rental and/or Common Area Operating Expenses, is
an approximation which Lessor and Lessee agree is reasonable and the rental and
Lessee's Share (as defined in Paragraph 1.6(b)) based thereon is not subject to
revision whether or not the actual square footage is more or less.

   2.2 CONDITION. Lessor shall deliver the Premises to Lessee clean and free of
debris on the Commencement Date and warrants to Lessee that the existing
plumbing, electrical systems, fire sprinkler system, lighting, air conditioning
and heating systems and loading doors, if any, in the Premises, other than those
constructed by Lessee, shall be in good operating condition on the Commencement
Date. If a non-compliance with said warranty exists as of the Commencement Date,
Lessor shall, except as otherwise provided in this Lease, promptly after receipt
of written notice from Lessee setting forth with specificity the nature and
extent of such non-compliance, rectify same at Lessor's expense. If Lessee does
not give Lessor written notice of a non-compliance with this warranty within
thirty (30) days after the Commencement Date, correction of that non-compliance
shall be the obligation of Lessee at Lessee's sole cost and expense.

   2.3 COMPLIANCE WITH COVENANTS, RESTRICTIONS AND BUILDING CODE. Lessor
warrants that any improvements (other than those constructed by Lessee or at
Lessee's direction) on or in the Premises which have been constructed or
installed by Lessor or with Lessor's consent or at Lessor's direction shall
comply with all applicable covenants or restrictions of record and applicable
building codes, regulations and ordinances in effect on the Commencement Date.
Lessor further warrants to Lessee that Lessor has no knowledge of any claim
having been made by any governmental agency that a violation or violations of
applicable building codes, regulations, or ordinances exist with regard to the
Premises as of the Commencement Date. Said warranties shall not apply to any
Alterations or Utility Installations (defined In Paragraph 7.3(a)) made or to be
made by Lessee. If the Premises do not comply with said warranties, Lessor
shall, except as otherwise provided in this Lease, promptly after receipt of
written notice from Lessee given within six (6) months following the
Commencement Date and setting forth with specificity the nature and extent of
such non-compliance, take such action, at Lessor's expense, as may be reasonable
or appropriate to rectify the non-compliance. Lessor makes no warranty that the
Permitted Use in Paragraph 1.8 is permitted for the Premises under Applicable
Laws (as defined in Paragraph 2.4).

     2.4  ACCEPTANCE OF PREMISES.  Lessee hereby  acknowledges:  (a) that it has
satisfied  itself with respect to the condition of the Premises  (including  but
not  limited  to  the   electrical  and  fire   sprinkler   systems,   security,
environmental aspects, seismic and earthquake requirements,  and compliance with
the Americans with Disabilities Act and applicable  zoning,  municipal,  county,
state  and  federal  laws,  ordinances  and  regulations  and any  covenants  or
restrictions  of record  (collectively,  "APPLICABLE  LAWS") and the present and
future  suitability  of the Premises for Lessee's  intended use; (b) that Lessee
has  made  such  investigation  as it deems  necessary  with  reference  to such
matters,  is satisfied with reference  thereto,  and assumes all  responsibility
therefore as the same relate to Lessee's  occupancy  of the Premises  and/or the
terms of this Lease;  and (c) that neither Lessor,  nor any of Lessor's  agents,
has made any oral or written  representations or warranties with respect to said
matters other than as set forth in this Lease.

   2.5 LESSEE AS PRIOR OWNER/OCCUPANT. The warranties made by Lessor in this
Paragraph 2 shall be of no force or effect if immediately prior to the date set
forth in Paragraph 1.1 Lessee was the owner or occupant of the Premises. In such
event, Lessee shall, at Lessee's sole cost and expense, correct any non-
compliance of the Premises with said warranties.



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   2.6 VEHICLE PARKING. Lessee shall be entitled to use the number of Unreserved
Parking Spaces and Reserved Parking Spaces specified in Paragraph 1.2(b) on
those portions of the Common Areas designated from time to time by Lessor for
parking. Lessee shall not use more parking spaces than said number. Said parking
spaces shall be used for parking by vehicles no larger than full-size passenger
automobiles or pick-up trucks, herein called "Permitted Size Vehicles." Vehicles
other than Permitted Size Vehicles shall be parked and loaded or unloaded as
directed by Lessor in the Rules and Regulations (as defined in Paragraph 40)
issued by Lessor. (Also see Paragraph 2.9.)

       (a)  Lessee shall not permit or allow any vehicles that belong to or are
controlled by Lessee or Lessee's employees, suppliers, shippers, customers,
contractors or invitees to be loaded, unloaded, or parked in areas other than
those designated by Lessor for such activities.

       (b)  If Lessee permits or allows any of the prohibited activities
described in this Paragraph 2.6, then Lessor shall have the right, without
notice, in addition to such other rights and remedies that it may have, to
remove or tow away the vehicle involved and charge the cost to Lessee, which
cost shall be immediately payable upon demand by Lessor.

       (c)  Lessor shall at the Commencement Date of this Lease, provide the
parking facilities required by Applicable Law.

   2.7 COMMON AREAS - DEFINITION. The term "Common Areas" is defined as all
areas and facilities outside the Premises and within the exterior boundary line
of the Industrial Center and interior utility raceways within the Premises that
are provided and designated by the Lessor from time to time for the general non-
exclusive use of Lessor, Lessee and other lessees of the Industrial Center and
their respective employees, suppliers, shippers, customers, contractors and
invitees, including parking areas, loading and unloading areas, trash areas,
roadways, sidewalks, walkways, parkways, driveways and landscaped areas.

   2.8 COMMON AREA - LESSEE'S RIGHTS. Lessor hereby grants to Lessee, for the
benefit of Lessee and its employees, suppliers, shippers, contractors, customers
and invitees, during the term of this Lease, the non-exclusive right to use, in
common with others entitled to such use, the Common Areas as they exist from
time to time, subject to any rights, powers, and privileges reserved by Lessor
under the terms hereof or under the terms of any rules and regulations or
restrictions governing the use of the Industrial Center. Under no circumstances
shall the right herein granted to use the Common Areas be deemed to include the
right to store any property, temporarily or permanently, in the Common Areas.
Any such storage shall be permitted only by the prior written consent of Lessor
or Lessor's designated agent, which consent may be revoked at any time. In the
event that any unauthorized storage shall occur then Lessor shall have the
right, without notice, in addition to such other rights and remedies that it may
have, to remove the property and charge the cost to Lessee, which cost shall be
immediately payable upon demand by Lessor.

   2.9 COMMON AREAS - RULES AND REGULATIONS. Lessor or such other person(s) as
Lessor may appoint shall have the exclusive control and management of the Common
Areas and shall have the right, from time to time, to establish, modify, amend
and enforce reasonable Rules and Regulations with respect thereto in accordance
with Paragraph 40. Lessee agrees to abide by and conform to all such Rules and
Regulations, and to cause its employees, suppliers, shippers, customers,
contractors and invitees to so abide and conform. Lessor shall not be
responsible to Lessee for the non-compliance with said rules and regulations by
other lessees of the Industrial Center.

   2.10  COMMON AREAS - CHANGES. Lessor shall have the right, in Lessor's sole
discretion, from time to time:

       (a) To make changes to the Common Areas, including, without limitation,
changes in the location, size, shape and number of driveways, entrances, parking
spaces, parking areas, loading and unloading areas, ingress, egress, direction
of traffic, landscaped areas, walkways and utility raceways;

       (b) To close temporarily any of the Common Areas for maintenance purposes
so long as reasonable access to the Premises remains available;

       (c) To designate other land outside the boundaries of the Industrial
Center to be a part of the Common Areas;

       (d) To add additional buildings and improvements to the Common Areas;

       (e) To use the Common Areas while engaged in making additional
improvements, repairs or alterations to the Industrial Center, of any portion
thereof; and

       (f) To do and perform such other acts and make such other changes in, to
or with respect to the Common Areas and Industrial Center as Lessor may, in the
exercise of sound business judgment, deem to be appropriate.

3. TERM.

   3.1 TERM. The Commencement Date, Expiration Date and Original Term of this
Lease are as specified in Paragraph 1.3.

   3.2 EARLY POSSESSION. If an Early Possession Date is specified in Paragraph
1.4 and if Lessee totally or partially occupies the Premises after the Early
Possession Date but prior to the Commencement Date, the obligation to pay Base
Rent shall be abated for the period of such early occupancy. All other terms of
this Lease, however, (including but not limited to the obligations to pay
Lessee's Share of Common Area Operating Expenses and to carry the insurance
required by Paragraph 8) shall be in effect during such period. Any such early
possession shall not affect nor advance the Expiration Date of the Original
Term.

   3.3 DELAY IN POSSESSION. If for any reason Lessor cannot deliver possession
of the Premises to Lessee by the Early Possession Date, if one is specified in
Paragraph 1.4, or if no Early Possession Date is specified, by the Commencement
Date, Lessor shall not be subject to any liability therefor, nor shall such
failure affect the validity of this Lease, or the obligation of Lessee
hereunder, or extend the term hereof, but in such case, Lessee shall not,
except as otherwise provided herein, be obligated to pay rent or perform any
other obligation of Lessee under the terms of this Lease until Lessor delivers
possession of the Premises to Lessee. If possession of the Premises is not
delivered to Lessee within sixty (60) days after the Commencement Date, Lessee
may, at its option, by notice in writing to Lessor within ten (10) days after
the end of said sixty (60) day period, cancel this Lease, in which event the
parties shall be discharged from all obligations hereunder; provided further,
however, that if such written notice of Lessee is not received by Lessor within
said ten (10) day period, Lessee's right to cancel this Lease hereunder shall
terminate and be of no further force or effect. Except as may be otherwise
provided, and regardless of when the Original Term actually commences, if
possession is not tendered to Lessee when required by this Lease and Lessee does
not terminate this Lease, as aforesaid, the period free of the obligation to pay
Base Rent, if any, that Lessee would otherwise have enjoyed shall run from the
date of delivery of possession and continue for a period equal to the period
during which the Lessee would have otherwise enjoyed under the terms hereof, but
minus any days of delay caused by the acts, changes or omissions of Lessee.

4. RENT.

   4.1 BASE RENT. Lessee shall pay Base Rent and other rent or charges, as the
same may be adjusted from time to time, to Lessor in lawful money of the United
States, without offset or deduction, on or before the day on which it is due
under the terms of this Lease. Base Rent and all other rent and charges for any
period during the term hereof which is for less than one full month shall be
prorated based upon the actual number of days of the month involved. Payment of
Base Rent and other charges shall be made to Lessor at its address stated herein
or to such other persons or at such other addresses as Lessor may from time to
time designate in writing to Lessee.

   4.2 COMMON AREA OPERATING EXPENSES. Lessee shall pay to Lessor during the
term hereof, in addition to the Base Rent, Lessee's Share (as specified in
Paragraph 1.6(b)) of all Common Area Operating Expenses, as hereinafter defined,
during each calendar year of the term of this Lease, in accordance with the
following provisions:

     (a) "Common Area Operating Expenses" are defined, for purposes of this
Lease, as all costs incurred by Lessor relating to the ownership and operation
of the Industrial Center, including, but not limited to, the following:

          (i) The operation, repair and maintenance, in neat, clean, good order
     and condition, of the following:

               (aa) The Common Areas, including parking areas, loading and
     unloading areas, trash areas, roadways, sidewalks, walkways, parkways,
     driveways, landscaped areas, striping, bumpers, irrigation systems, Common
     Area lighting facilities, fences and gates and roof.

               (bb) Exterior signs and any tenant directories.

               (cc) Fire detection and sprinkler systems.

          (ii) The cost of water, gas, electricity and telephone to service the
     Common Areas.

          (iii)security services and the costs of any environmental inspections.

          (iv) Reserves set aside for maintenance and repair of Common Areas.

          (v) Real Property Taxes (as defined in Paragraph 10.2) to be paid by
     Lessor for the Building and the Common Areas under Paragraph 10 hereof.

          (vi) The cost of the premiums for the insurance policies maintained by
     Lessor under Paragraph 8 hereof.

          (vii) Any deductible portion of an insured loss concerning the
     Building or the Common Areas.

          (viii) Any other services to be provided by Lessor that are stated
     elsewhere in this Lease to be a Common Area Operating Expense.

   (b)  Any Common Area Operating Expenses and Real Property Taxes that are
specifically attributable to the Building or to any other building in the
Industrial Center or to the operation, repair and maintenance thereof, shall be
allocated entirely to the Building or to such other building. However, any
Common Area Operating Expenses and Real Property Taxes that are not specifically
attributable to the Building or to any other building or to the operation,
repair and maintenance thereof, shall be equitably allocated by Lessor to all
buildings in the Industrial Center.

   (c)  The inclusion of the improvements, facilities and services set forth in
Subparagraph 4.2(a) shall not be deemed to impose an obligation upon Lessor to
either have said improvements or facilities or to provide those services unless
the Industrial Center already has the same, Lessor already provides the
services, or Lessor has agreed elsewhere in this Lease to provide the same or
some of them.

   (d)  Lessee's Share of Common Area Operating Expenses shall be payable by
Lessee within ten (10) days after a reasonably detailed statement of actual
expenses is presented to Lessee by Lessor. At Lessor's option, however, an
amount may be estimated by Lessor from time to time of Lessee's Share of annual
Common Area Operating Expenses and the same shall be payable monthly or
quarterly, as Lessor shall designate, during each 12-month period of the Lease
term, on the same day as the Base Rent is due hereunder. Lessor shall deliver to
Lessee within sixty (60) days after the expiration of each calendar year a
reasonably detailed statement showing Lessee's Share of the actual Common Area
Operating Expenses incurred during the preceding year. If Lessee's payments
under this Paragraph 4.2(d) during said preceding year exceed Lessee's Share as
indicated on said statement, Lessee shall be credited the amount of such over-

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payment against Lessee's Share of Common Area Operating Expenses next becoming
due. If Lessee's payments under this Paragraph 4.2(d) during said preceding year
were less than Lessee's Share as indicated on said statement, Lessee shall pay
to Lessor the amount of the deficiency within ten (10) days after delivery by
Lessor to Lessee of said statement.

6. USE

   6.1 PERMITTED USE.

       (a) Lessee shall use and occupy the Premises only for the Permitted Use
set forth in Paragraph 1.8, or any other legal use which is reasonably
comparable thereto, and for no other purpose. Lessee shall not use or permit the
use of the Premises in a manner that is unlawful, creates waste or a nuisance,
or that disturbs owners and/or occupants of, or causes damage to the Premises or
neighboring premises or properties.

       (b) Lessor hereby agrees to not unreasonably withhold or delay its
consent to any written request by Lessee, Lessee's assignees or subtenants, and
by prospective assignees and subtenants of Lessee, its assignees and subtenants,
for a modification of said Permitted Use, so long as the same will not impair
the structural integrity of the improvements on the Premises or in the Building
or the mechanical or electrical systems therein, does not conflict with uses by
other lessees, is not significantly more burdensome to the Premises or the
Building and the improvements thereon, and is othewise permissible pursuant to
this Paragraph 6. If Lessor elects to withhold such consent, Lessor shall within
five (5) business days after such request give a written notification of same,
which notice shall include an explanation of Lessor's reasonable objections to
the change in use.

   6.2 HAZARDOUS SUBSTANCES.

       (a) REPORTABLE USES REQUIRE CONSENT. The term "HAZARDOUS SUBSTANCE" as
used in this Lease shall mean any product, substance, chemical, material or
waste whose presence, nature, quantity and/or intensity of existence, use,
manufacture, disposal, transportation, spill, release or effect, either by
itself or in combination with other materials expected to be on the Premises, is
either: (i) potentially injurious to the public health, safety or welfare, the
environment, or the Premises; (ii) regulated or monitored by any governmental
authority; or (iii) a basis for potential liability of Lessor to any
governmental agency or third party under any applicable statute or common law
theory. Hazardous Substance shall include, but not be limited to, hydrocarbons,
petroleum, gasoline, crude oil or any products or by-products thereof. Lessee
shall not engage in any activity in or about the Premises which constitutes a
Reportable Use (as hereinafter defined) of Hazardous Substances without the
express prior written consent of Lessor and compliance in a timely manner (at
Lessee's sole cost and expense) with all Applicable Requirements (as defined in
Paragraph 6.3). "Reportable Use" shall mean (i) the installation or use of any
above or below ground storage tank, (ii) the generation, possession, storage,
use, transportation, or disposal of a Hazardous Substance that requires a permit
from, or with respect to which a report, notice, registration or business plan
is required to be filed with, any governmental authority, and (iii) the presence
in, on or about the Premises of a Hazardous Substance with respect to which any
Applicable Laws require that a notice be given to persons entering or occupying
the Premises or neighboring properties. Notwithstanding the foregoing, Lessee
may, without Lessor's prior consent, but upon notice to Lessor and in compliance
with all Applicable Requirements, use any ordinary and customary materials
reasonably required to be used by Lessee in the normal course of the Permitted
Use, so long as such use is not a Reportable Use and does not expose the
Premises or neighboring properties to any meaningful risk of contamination or
damage or expose Lessor to any liability therefor. In addition, Lessor may (but
without any obligation to do so) condition its consent to any Reportable Use of
any Hazardous Substance by Lessee upon Lessee's giving Lessor such additional
assurances as Lessor, in its reasonable discretion, deems necessary to protect
itself, the public, the Premises and the environment against damage,
contamination or injury and/or liability therefor, including but not limited to
the installation (and, at Lessor's option, removal on or before Lease expiration
or earlier termination) of reasonably necessary protective modifications to the
Premises (such as concrete encasements) and/or the deposit of an additional
Security Deposit under Paragraph 5 hereof.

       (b) DUTY TO INFORM LESSOR. If Lessee knows, or has reasonable cause to
believe, that a Hazardous Substance has come to be located in, on, under or
about the Premises or the Building, other than as previously consented to by
Lessor (see Exhibit B),  Lessee shall give Lessor  written  notice  thereof,  in
accordance with the reporting requirements of Paragraph 6.3, Lessee;s Compliance
with Requirements

       (c) INDEMNIFICATION. Lessee shall indemnify, protect, defend and hold
Lessor, its agents, employees, lenders and ground lessor, if any, and the
Premises, harmless from and against any and all damages, liabilities, judgments,
costs, claims, liens, expenses, penalties, loss of permits and attorneys' and
consultants' fees arising out of or involving any Hazardous Substance brought
onto the Premises by or for Lessee or by anyone under Lessee's control. Lessee's
obligations under this Paragraph 6.2(c) shall include, but not be limited to,
the effects of any contamination or injury to person, property or the
environment created or suffered by Lessee, and the cost of investigation
(including consultants' and attorneys' fees and testing), removal, remediation,
restoration and/or abatement thereof, or of any contamination therein involved,
and shall survive the expiration or earlier termination of this Lease. No
termination, cancellation or release agreement entered into by Lessor and Lessee
shall release Lessee from its obligations under this Lease with respect to
Hazardous Substances, unless specifically so agreed by Lessor in writing at the
time of such agreement.

   6.3 LESSEE'S COMPLIANCE WITH REQUIREMENTS. Lessee shall, at Lessee's sole
cost and expense, fully, diligently and in a timely manner, comply with all
"APPLICABLE REQUIREMENTS," which term is used in this Lease to mean all laws,
rules, regulations, ordinances, directives, covenants, easements and
restrictions of record, permits, the requirements of any applicable fire
insurance underwriter or rating bureau, and the recommendations of Lessor's
engineers and/or consultants, relating in any manner to the Premises
(including but not limited to matters pertaining to (i) industrial hygiene,
(ii) environmental conditions on, in, under or about the Premises, including
soil and groundwater conditions, and (iii) the use, generation, manufacture,
production, installation, maintenance, removal, transportation, storage, spill,
or release of any Hazardous Substance), now in effect or which may hereafter
come into effect. Lessee shall, within five (5) days after receipt of Lessor's
written request, provide Lessor with copies of all documents and information,
including but not limited to permits, registrations, manifests, applications,
reports and certificates, evidencing Lessee's compliance with any Applicable
Requirements specified by Lessor, and shall immediately upon receipt, notify
Lessor in writing (with copies of any documents involved) of any threatened or
actual claim, notice, citation, warning, complaint or report pertaining to or
involving failure by Lessee or the Premises to comply with any Applicable
Requirements.

   6.4 INSPECTION; COMPLIANCE WITH LAW. Lessor, Lessor's agents, employees,
contractors and designated representatives, and the holders of any mortgages,
deeds of trust or ground leases on the Premises ("Lenders") shall have the right
to enter the Premises at any time in the case of an emergency, and otherwise at
reasonable times upon prior reasonable notice to Lessee for the purpose of
inspecting the condition of the Premises and for verifying compliance by Lessee
with this Lease and all Applicable Requirements (as defined in Paragraph 6.3),
and Lessor shall be entitled to employ experts and/or consultants in connection
therewith to advise Lessor with respect to Lessee's activities, including but
not limited to Lessee's installation, operation, use, monitoring, maintenance,
or removal of any Hazardous Substance on or from the Premises. The costs and
expenses of any such inspections shall be paid by the party requesting same,
unless a Default or Breach of this Lease by Lessee or a violation of Applicable
Requirements or a contamination, caused or materially contributed to by Lessee,
is found to exist or to be imminent, or unless the inspection is requested or
ordered by a governmental authority as the result of any such existing or
imminent violation or contamination. In such case, Lessee shall upon request
reimburse Lessor or Lessor's Lender, as the case may be, for the costs and
expenses of such inspections.

7. MAINTENANCE, REPAIRS, UTILITY INSTALLATIONS, TRADE FIXTURES AND ALTERATIONS.

   7.1 LESSEE'S OBLIGATIONS.

   (a) Subject to the provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance
with Covenants, Restrictions and Building Code), 7.2 (Lessor's Obigations), 9
(Damage or Destruction), and 14 (Condemnation), Lessee shall, at Lessee's sole
cost and expense and at all times, keep the Premises and every part thereof in
good order, condition and repair (whether or not such portion of the Premises
requiring repair, or the means of repairing the same, are reasonably or readily
accessible to Lessee, and whether or not the need for such repairs occurs as a
result of Lessee's use, any prior use, the elements or the age of such portion
of the Premises), including, without limiting the generality of the foregoing,
all equipment or facilities specifically serving the Premises, such as plumbing,
heating, air conditioning, ventilating, electrical, lighting facilities,
boilers, fired or unfired pressure vessels, fire hose connections if within the
Premises, fixtures, interior walls, interior surfaces of exterior walls,
ceilings, floors, windows, doors, plate glass, and skylights, but excluding any
items which are the responsibility of Lessor pursuant to Paragraph 7.2 below.
Lessee, in keeping the Premises in good order, condition and repair, shall
exercise and perform good maintenance practices. Lessee's obligations shall
include restorations, replacements or renewals when necessary to keep the
Premises and all improvements thereon or a part thereof in good order, condition
and state of repair.

   (b) Lessee shall, at Lessee's sole cost and expense, procure and maintain a
contract, with copies to Lessor, in customary form and substance for and with a
contractor specializing and experienced in the inspection, maintenance and
service of the heating, air conditioning and ventilation system for the
Premises. However, Lessor reserves the right, upon notice to Lessee, to procure
and maintain the contract for the heating, air conditioning and ventilating
systems, and if Lessor so elects, Lessee shall reimburse Lessor, upon demand,
for the cost thereof.

   (c) If Lessee fails to perform Lessee's obligations under this Paragraph 7.1,
Lessor may enter upon the Premises after ten (10) days' prior written notice to
Lessee (except in the case of an emergency, in which case no notice shall be
required), perform such obligations on Lessee's behalf, and put the Premises
in good order, condition and repair, in accordance with Paragraph 13.2 below.

  7.2  LESSOR'S OBLIGATIONS. Subject to the provisions of Paragraphs 2.2
(Condition), 2.3 (Compliance with Covenants, Restrictions and Building Code),
4.2 (Common Area Operating Expenses), 6 (Use), 7.1 (Lessee's Obligations),
9 (Damage or Destruction) and 14 (Condemnation), Lessor, subject to
reimbursement pursuant to Paragraph 4.2, shall keep in good order, condition and
repair the foundations, exterior walls, structural condition of interior bearing
walls, exterior roof, fire sprinkler and/or standpipe and hose (if located in
the Common Areas) or other automatic fire extinguishing system including fire
alarm and/or smoke

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detection systems and equipment, fire hydrants, parking lots, walkways,
parkways, driveways, landscaping, fences, signs and utility systems serving the
Common Areas and all parts thereof, as well as providing the services for which
there is a Common Area Operating Expense pursuant to Paragraph 4.2. Lessor shall
not be obligated to paint the exterior or interior surfaces of exterior walls
nor shall Lessor be obligated to maintain, repair or replace windows, doors or
plate glass of the Premises. Lessee expressly waives the benefit of any statute
now or hereafter in effect which would otherwise afford Lessee the right to make
repairs at Lessor's expense or to terminate this Lease because of Lessor's
failure to keep the Building, Industrial Center or Common Areas in good order,
condition and repair.

   7.3 UTILITY INSTALLATIONS, TRADE FIXTURES, ALTERATIONS.

       (a) DEFINITIONS; CONSENT REQUIRED. The term "UTILITY INSTALLATIONS" is
used in this Lease to refer to all air lines, power panels, electrical
distribution, security, fire protection systems, communications systems,
lighting fixtures, heating, ventilating and air conditioning equipment,
plumbing, and fencing in, on or about the Premises. The term "TRADE FIXTURES"
shall mean Lessee's machinery and equipment which can be removed without doing
material damage to the Premises. The term "ALTERATIONS" shall mean any
modification of the improvements on the Premises which are provided by Lessor
under the terms of this Lease, other than Utility Installations or Trade
Fixtures. "LESSEE-OWNED ALTERATIONS AND/OR UTILITY INSTALLATIONS" are defined as
Alterations and/or Utility Installations made by Lessee that are not yet owned
by Lessor pursuant to Paragraph 7.4(a). Lessee shall not make nor cause to be
made any Alterations or Utility Installations in, on, under or about the
Premises without Lessor's prior written consent. Lessee may, however, make non-
structural Utility Installations to the interior of the Premises (excluding the
roof) without Lessor's consent but upon notice to Lessor, so long as they are
not visible from the outside of the Premises, do not involve puncturing,
relocating or removing the roof or any existing walls, or changing or
interfering with the fire sprinkler or fire detection systems and the cumulative
cost thereof during the term of this Lease as extended does not exceed
$2,500.00.

       (b) CONSENT. Any Alterations or Utility Installations that Lessee shall
desire to make and which require the consent of the Lessor shall be presented to
Lessor in written form with detailed plans. All consents given by Lessor,
whether by virtue of Paragraph 7.3(a) or by subsequent specific consent, shall
be deemed conditioned upon: (i) Lessee's acquiring all applicable permits
required by governmental authorities; (ii) the furnishing of copies of such
permits together with a copy of the plans and specifications for the Alteration
or Utility Installation to Lessor prior to commencement of the work thereon; and
(iii) the compliance by Lessee with all conditions of said permits in a prompt
and expeditious manner. Any Alterations or Utility Installations by Lessee
during the term of this Lease shall be done in a good and workmanlike manner,
with good and sufficient materials, and be in compliance with all Applicable
Requirements. Lessee shall promptly upon completion thereof furnish Lessor with
as-built plans and specifications therefor. Lessor may, (but without obligation
to do so) condition its consent to any requested Alteration or Utility
Installation that costs $2,500.00 or more upon Lessee's providing Lessor with a
lien and completion bond in an amount equal to one and one-half times the
estimated cost of such Alteration or Utility Installation.

       (c) LIEN PROTECTION. Lessee shall pay when due all claims for labor or
materials furnished or alleged to have been furnished to or for Lessee at or for
use on the Premises, which claims are or may be secured by any mechanic's or
materialmen's lien against the Premises or any interest therein. Lessee shall
give Lessor not less than ten (10) days' notice prior to the commencement of any
work in, on, or about the Premises, and Lessor shall have the right to post
notices of non-responsibility in or on the Premises as provided by law. If
Lessee shall, in good faith, contest the validity of any such lien, claim or
demand, then Lessee shall, at its sole expense, defend and protect itself,
Lessor and the Premises against the same and shall pay and satisfy any such
adverse judgment that may be rendered thereon before the enforcement thereof
against the Lessor or the Premises. If Lessor shall require, Lessee shall
furnish to Lessor a surety bond satisfactory to Lessor in an amount equal to one
and one-half times the amount of such contested lien claim or demand,
indemnifying Lessor against liability for the same, as required by law for the
holding of the Premises free from the effect of such lien or claim. In addition,
Lessor may require Lessee to pay Lessor's attorneys' fees and costs in
participating in such action if Lessor shall decide it is to its best interest
to do so.

   7.4 OWNERSHIP, REMOVAL, SURRENDER, AND RESTORATION.

       (a) OWNERSHIP. Subject to Lessor's right to require their removal and to
cause Lessee to become the owner thereof as hereinafter provided in this
Paragraph 7.4, all Alterations and Utility Installations made to the Premises by
Lessee shall be the property of and owned by Lessee, but considered a part of
the Premises. Lessor may, at any time and at its option, elect in writing to
Lessee to be the owner of all or any specified part of the Lessee-Owned
Alterations and Utility Installations. Unless otherwise instructed per
Subparagraph 7.4(b) hereof, all Lessee-Owned Alterations and Utility
Installations shall, at the expiration or earlier termination of this Lease,
become the property of Lessor and remain upon the Premises and be surrendered
with the Premises by Lessee.

       (b) REMOVAL. Unless otherwise agreed in writing, Lessor may require that
any or all Lessee Owned Alterations or Utility Installations be removed by the
expiration or earlier termination of this Lease, notwithstanding that their
installation may have been consented to by Lessor. Lessor may require the
removal at any time of all or any part of any Alterations or Utility
Installations made without the required consent of Lessor.

       (c) SURRENDER/RESTORATION. Lessee shall surrender the Premises by the end
of the last day of the Lease term or any earlier termination date, clean and
free of debris and in good operating order, condition and state of repair,
ordinary wear and tear excepted. Ordinary wear and tear shall not include any
damage or deterioration that would have been prevented by good maintenance
practice or by Lessee performing all of its obligations under this Lease. Except
as otherwise agreed or specified herein, the Premises, as surrendered, shall
include the Alterations and Utility Installations. The obligation of Lessee
shall include the repair of any damage occasioned by the installation,
maintenance or removal of Lessee's Trade Fixtures, furnishings, equipment, and
Lessee-Owned Alterations and Utility Installations, as well as the removal of
any storage tank installed by or for Lessee, and the removal, replacement, or
remediation of any soil, material or ground water contaminated by Lessee, all as
may then be required by Applicable Requirements and/or good practice. Lessee's
Trade Fixtures shall remain the property of Lessee and shall be removed by
Lessee subject to its obligation to repair and restore the Premises per this
Lease.

8. INSURANCE; INDEMNITY.

   8.1 PAYMENT OF PREMIUMS. The cost of the premiums for the insurance policies
maintained by Lessor under this Paragraph 8 shall be a Common Area Operating
Expense pursuant to Paragraph 4.2 hereof. Premiums for policy periods commencing
prior to, or extending beyond, the term of this Lease shall be prorated to
coincide with the corresponding Commencement Date or Expiration Date.

   8.2 LIABILITY INSURANCE.

       (a) CARRIED BY LESSEE. Lessee shall obtain and keep in force during the
term of this Lease a Commercial General Liability policy of insurance protecting
Lessee, Lessor and any Lender(s) whose names have been provided to Lessee in
writing (as additional insureds) against claims for bodily injury, personal
injury and property damage based upon, involving or arising out of the
ownership, use, occupancy or maintenance of the Premises and all areas
appurtenant thereto. Such insurance shall be on an occurrence basis providing
single limit coverage in an amount not less than $1,000,000 per occurrence with
an "Additional Insured-Managers or Lessors of Premises" endorsement and contain
the "Amendment of the Pollution Exclusion" endorsement for damage caused by
heat, smoke or fumes from a hostile fire. The policy shall not contain any
intra-insured exclusions as between insured persons or organizations, but shall
include coverage for liability assumed under this Lease as an "INSURED CONTRACT"
for the performance of Lessee's indemnity obligations under this Lease. The
limits of said insurance required by this Lease or as carried by Lessee shall
not, however, limit the liability of Lessee nor relieve Lessee of any obligation
hereunder. All insurance to be carried by Lessee shall be primary to and not
contributory with any similar insurance carried by Lessor, whose insurance shall
be considered excess insurance only.

       (b) CARRIED BY LESSOR. Lessor shall also maintain liability insurance
described in Paragraph 8.2(a) above, in addition to and not in lieu of, the
insurance required to be maintained by Lessee. Lessee shall not be named as an
additional insured therein.

   8.3 PROPERTY INSURANCE-BUILDING, IMPROVEMENTS AND RENTAL VALUE.

       (a) BUILDING AND IMPROVEMENTS. Lessor shall obtain and keep in force
during the term of this Lease a policy or policies in the name of Lessor, with
loss payable to Lessor and to any Lender(s), insuring against loss or damage to
the Premises. Such insurance shall be for full replacement cost, as the same
shall exist from time to time, or the amount required by any Lender(s), but in
no event more than the commercially reasonable and available insurable value
thereof if, by reason of the unique nature or age of the improvements involved,
such latter amount is less than full replacement cost. Lessee-Owned Alterations
and Utility Installations, Trade Fixtures and Lessee's personal property shall
be insured by Lessee pursuant to Paragraph 8.4. If the coverage is available and
commercially appropriate, Lessor's policy or policies shall insure against all
risks of direct physical loss or damage (except the perils of flood and/or
earthquake unless required by a Lender), including coverage for any additional
costs resulting from debris removal and reasonable amounts of coverage for the
enforcement of any ordinance or law regulating the reconstruction or replacement
of any undamaged sections of the Building required to be demolished or removed
by reason of the enforcement of any building, zoning, safety or land use laws as
the result of a covered loss, but not including plate glass insurance. Said
policy or policies shall also contain an agreed valuation provision in lieu of
any co-insurance clause, waiver of subrogation, and inflation guard protection
causing an increase in the annual property insurance coverage amount by a factor
of not less than the adjusted U.S. Department of Labor Consumer Price Index for
All Urban Consumers for the city nearest to where the Premises are located.

       (b) RENTAL VALUE. Lessor shall also obtain and keep in force during the
term of this Lease a policy or policies in the name of Lessor, with loss payable
to Lessor and any Lender(s), insuring the loss of the full rental and other
charges payable by all lessees of the Building to Lessor for one year (including
all Real Property Taxes, insurance costs, all Common Area Operating Expenses and
any scheduled rental increases). Said insurance may provide that in the event
the Lease is terminated by reason of an insured loss, the period of indemnity
for such coverage shall be extended beyond the date of the completion of repairs
or replacement of the Premises, to provide for one full year's loss of rental
revenues from the date of any such loss. Said insurance shall contain an agreed
valuation provision in lieu of any co-insurance clause, and the amount of
coverage shall be adjusted annually to reflect the projected rental income, Real
Property Taxes, insurance premium costs and other expenses, if any, otherwise
payable, for the next 12-month period. Common Area Operating Expenses shall
include any deductible amount in the event of such loss.

       (c) ADJACENT PREMISES. Lessee shall pay for any increase in the premiums
for the property insurance of the Building and for the Common Areas or other
buildings in the Industrial Center if said increase is caused by Lessee's acts,
omissions, use or occupancy of the Premises.

       (d) LESSEE'S IMPROVEMENTS. Since Lessor is the Insuring Party, Lessor
shall not be inquired to insure Lessee-Owned Alterations and Utility
Installations unless the item in question has become the property of Lessor
under the terms of this Lease.

   8.4 LESSEE'S PROPERTY INSURANCE. Subject to the requirements of Paragraph
8.5, Lessee at its cost shall either by separate policy or, at Lessor's option,
by endorsement to a policy already carried, maintain insurance coverage on all
of Lessee's personal property, Trade Fixtures and Lessee-Owned Alterations and
Utility Installations in, on, or about the Premises similar in coverage to that
carried by Lessor as the Insuring Party under Paragraph 8.3(a). Such insurance
shall be full replacement cost coverage with a deductible not to exceed $1,000
per occurrence. The proceeds from any such insurance shall be used by Lessee for
the replacement of personal property and the restoration of Trade Fixtures and
Lessee-Owned Alterations and Utility Installations. Upon request from Lessor,
Lessee shall provide Lessor with written evidence that such insurance is in
force.

   8.5 INSURANCE POLICIES. Insurance required hereunder shall be in companies
duly licensed to transact business in the state where the Premises are located,
and maintaining during the policy term a "General Policyholders Rating" of at
least B+, V, or such other rating as may be required by a Lender, as set forth
in the most current issue of "Best's Insurance Guide." Lessee shall not do or
permit to be done anything which shall invalidate the insurance policies
referred to in

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this Paragraph 8. Lessee shall cause to be delivered to Lessor, within seven (7)
days after the earlier of the Early Possession Date or the Commencement Date,
certified copies of, or certificates evidencing the existence and amounts of,
the insurance required under Paragraph 8.2(a) and 8.4. No such policy shall be
cancelable or subject to modification except after thirty (30) days' prior
written notice to Lessor. Lessee shall at least thirty (30) days prior to the
expiration of such policies, furnish Lessor with evidence of renewals or
"insurance binders" evidencing renewal thereof, or Lessor may order such
insurance and charge the cost thereof to Lessee, which amount shall be payable
by Lessee to Lessor upon demand.

   8.6 WAIVER OF SUBROGATION. Without affecting any other rights or remedies,
Lessee and Lessor each hereby release and relieve the other, and waive their
entire right to recover damages (whether in contract or in tort) against the
other, for loss or damage to their property arising out of or incident to the
perils required to be insured against under Paragraph 8. The effect of such
releases and waivers of the right to recover damages shall not be limited by the
amount of insurance carried or required, or by any deductibles applicable
thereto. Lessor and Lessee agree to have their respective insurance companies
issuing property damage insurance waive any right to subrogation that such
companies may have against Lessor or Lessee, as the case may be, so long as the
insurance is not invalidated thereby.

   8.7 INDEMNITY. Except for Lessor's negligence and/or breach of express
warranties, Lessee shall indemnify, protect, defend and hold harmless the
Premises, Lessor and its agents, Lessor's master or ground lessor, partners and
Lenders, from and against any and all claims, loss of rents and/or damages,
costs, liens, judgments, penalties, loss of permits, attorneys' and consultants'
fees, expenses and/or liabilities arising out of, involving, or in connection
with, the occupancy of the Premises by Lessee, the conduct of Lessee's business,
any act, omission or neglect of Lessee, its agents, contractors, employees or
invitees, and out of any Default or Breach by Lessee in the performance in a
timely manner of any obligation on Lessee's part to be performed under this
Lease. The foregoing shall include, but not be limited to, the defense or
pursuit of any claim or any action or proceeding involved therein, and whether
or not (in the case of claims made against Lessor) litigated and/or reduced to
judgment. In case any action or proceeding be brought against Lessor by reason
of any of the foregoing matters, Lessee upon notice from Lessor shall defend the
same at Lessee's expense by counsel reasonably satisfactory to Lessor and Lessor
shall cooperate with Lessee in such defense. Lessor need not have first paid any
such claim in order to be so indemnified.

   8.8 EXEMPTION OF LESSOR FROM LIABILITY. Lessor shall not be liable for injury
or damage to the person or goods, wares, merchandise or other property of
Lessee, Lessee's employees, contractors, invitees, customers, or any other
person in or about the Premises, whether such damage or injury is caused by or
results from fire, steam, electricity, gas, water or rain, or from the breakage,
leakage, obstruction or other defects of pipes, fire sprinklers, wires,
appliances, plumbing, air conditioning or lighting fixtures, or from any other
cause, whether said injury or damage results from conditions arising upon the
Premises or upon other portions of the Building of which the Premises are a
part, from other sources or places, and regardless of whether the cause of such
damage or injury or the means of repairing the same is accessible or not. Lessor
shall not be liable for any damages arising from any act or neglect of any other
lessee of Lessor nor from the failure by Lessor to enforce the provisions of any
other lease in the Industrial Center. Notwithstanding Lessor's negligence or
breach of this Lease, Lessor shall under no circumstances be liable for injury
to Lessee's business or for any loss of income or profit therefrom.

9. DAMAGE OR DESTRUCTION.

   9.1 DEFINITIONS.

       (a) "PREMISES PARTIAL DAMAGE" shall mean damage or destruction to the
Premises, other than Lessee-Owned Alterations and Utility Installations, the
repair cost of which damage or destruction is less than fifty percent (50%) of
the then Replacement Cost (as defined in Paragraph 9.1(d)) of the Premises
(excluding Lessee-Owned Alterations and Utility Installations and Trade
Fixtures) immediately prior to such damage or destruction.

       (b) "PREMISES TOTAL DESTRUCTION" shall mean damage or destruction to the
Premises, other than Lessee-Owned Alterations and Utility Installations, the
repair cost of which damage or destruction is fifty percent (50%) or more of the
then Replacement Cost of the Premises (excluding Lessee-Owned Alterations and
Utility Installations and Trade Fixtures) immediately prior to such damage or
destruction. In addition, damage or destruction to the Building, other than
Lessee-Owned Alterations and Utility Installations and Trade Fixtures of any
lessees of the Building, the cost of which damage or destruction is fifty
percent (50%) or more of the then Replacement Cost (excluding Lessee-Owned
Alterations and Utility Installations and Trade Fixtures of any lessees of the
Building) of the Building shall, at the option of Lessor, be deemed to be
Premises Total Destruction.

       (c) "INSURED LOSS" shall mean damage or destruction to the Premises,
other than Lessee-Owned Alterations and Utility Installations and Trade
Fixtures, which was caused by an event required to be covered by the insurance
described in Paragraph 8.3(a) irrespective of any deductible amounts or coverage
limits involved.

       (d) "REPLACEMENT COST" shall mean the cost to repair or rebuild the
improvements owned by Lessor at the time of the occurrence to their condition
existing immediately prior thereto, including demolition, debris removal and
upgrading required by the operation of applicable building codes, ordinances or
laws, and without deduction for depreciation.

       (e) "HAZARDOUS SUBSTANCE CONDITION" shall mean the occurrence or
discovery of a condition involving the presence of, or a contamination by, a
Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under the
Premises.

   9.2 PREMISES PARTIAL DAMAGE - INSURED LOSS. If Premises Partial Damage that
is an Insured Loss occurs, then Lessor shall, at Lessor's expense, repair such
damage (but not Lessee's Trade Fixtures or Lessee-Owned Alterations and Utility
Installations) as soon as reasonably possible and this Lease shall continue in
full force and effect. In the event, however, that there is a shortage of
insurance proceeds and such shortage is due to the fact that, by reason of the
unique nature of the improvements in the Premises, full replacement cost
insurance coverage was not commercially reasonable and available, Lessor shall
have no obligation to pay for the shortage in insurance proceeds or to fully
restore the unique aspects of the Premises unless Lessee provides Lessor with
the funds to cover same, or adequate assurance thereof, within ten (10) days
following receipt of written notice of such shortage and request therefor. If
Lessor receives said funds or adequate assurance thereof within said ten (10)
day period, Lessor shall complete them as soon as reasonably possible and this
Lease shall remain in full force and effect. If Lessor does not receive such
funds or assurance within said period, Lessor may nevertheless elect by written
notice to Lessee within ten (10) days thereafter to make such restoration and
repair as is commercially reasonable with Lessor paying any shortage in
proceeds, in which case this Lease shall remain in full force and effect. If
Lessor does not receive such funds or assurance within such ten (10) day period,
and if Lessor does not so elect to restore and repair, then this Lease shall
terminate sixty (60) days following the occurrence of the damage or destruction.
Unless otherwise agreed, Lessee shall in no event have any right to
reimbursement from Lessor for any funds contributed by Lessee to repair any such
damage or destruction. Premises Partial Damage due to flood or earthquake shall
be subject to Paragraph 9.3 rather than Paragraph 9.2, notwithstanding that
there may be some insurance coverage, but the net proceeds of any such insurance
shall be made available for the repairs if made by either Party.

   9.3 PARTIAL DAMAGE - UNINSURED LOSS. If Premises Partial Damage that is not
an Insured Loss occurs, unless caused by a negligent or willful act of Lessee
(in which event Lessee shall make the repairs at Lessee's expense and this Lease
shall continue in full force and effect), Lessor may at Lessor's option, either
(i) repair such damage as soon as reasonably possible at Lessor's expense, in
which event this Lease shall continue in full force and effect, or (ii) give
written notice to Lessee within thirty (30) days after receipt by Lessor of
knowledge of the occurrence of such damage of Lessor's desire to terminate this
Lease as of the date sixty (60) days following the date of such notice. In the
event Lessor elects to give such notice of Lessor's intention to terminate this
Lease, Lessee shall have the right within ten (10) days after the receipt of
such notice to give written notice to Lessor of Lessee's commitment to pay for
the repair of such damage totally at Lessee's expense and without reimbursement
from Lessor, Lessee shall provide Lessor with the required funds or satisfactory
assurance thereof within thirty (30) days following such commitment from Lessee.
In such event this Lease shall continue in full force and effect, and Lessor
shall proceed to make such repairs as soon as reasonably possible after the
required funds are available. If Lessee does not give such notice and provide
the funds or assurance thereof within the times specified above, this Lease
shall terminate as of the date specified in Lessor's notice of termination.

   9.4 TOTAL DESTRUCTION. Notwithstanding any other provision hereof, if
Premises Total Destruction occurs (including any destruction required by any
authorized public authority), this Lease shall terminate sixty (60) days
following the date of such Premises Total Destruction, whether or not the damage
or destruction is an Insured Loss or was caused by a negligent or willful act of
Lessee. In the event, however, that the damage or destruction was caused by
Lessee, Lessor shall have the right to recover Lessor's damages from Lessee
except as released and waived in Paragraph 9.7.

   9.5 DAMAGE NEAR END OF TERM. If at any time during the last six (6) months of
the term of this Lease there is damage for which the cost to repair exceeds one
month's Base Rent, whether or not an Insured Loss, Lessor may, at Lessor's
option, terminate this Lease effective sixty (60) days following the date of
occurrence of such damage by giving written notice to Lessee of Lessor's
election to do so within thirty (30) days after the date of occurrence of such
damage. Provided, however, if Lessee at that time has an exercisable option to
extend this Lease or to purchase the Premises, then Lessee may preserve this
Lease by (a) exercising such option, and (b) providing Lessor with any shortage
in insurance proceeds (or adequate assurance thereof) needed to make the repairs
on or before the earlier of (i) the date which is ten (10) days after Lessee's
receipt of Lessor's written notice purporting to terminate this Lease, or (ii)
the day prior to the date upon which such option expires. If Lessee duly
exercises such option during such period and provides Lessor with funds (or
adequate assurance thereof) to cover any shortage in insurance proceeds, Lessor
shall, at Lessor's expense repair such damage as soon as reasonably possible and
this Lease shall continue in full force and effect. If Lessee fails to exercise
such option and provide such funds or assurance during such period, then this
Lease shall terminate as of the date set forth in the first sentence of this
Paragraph 9.5.

   9.6 ABATEMENT OF RENT; LESSEE'S REMEDIES.

       (a) In the event of (i) Premises Partial Damage or (ii) Hazardous
Substance Condition for which Lessee is not legally responsible, the Base Rent,
Common Area Operating Expenses and other charges, if any, payable by Lessee
hereunder for the period during which such damage or condition, its repair,
remediation or restoration continues, shall be abated in proportion to the
degree to which Lessee's use of the Premises is impaired, but not in excess of
proceeds from insurance required to be carried under Paragraph 8.3(b). Except
for abatement of Base Rent, Common Area Operating Expenses and other charges, if
any, as aforesaid, all other obligations of Lessee hereunder shall be performed
by Lessee, and Lessee shall have no claim against Lessor for any damage suffered
by reason of any such damage, destruction, repair, remediation or restoration.

       (b) If Lessor shall be obligated to repair or restore the Premises under
the provisions of this Paragraph 9 and shall not commence, in a substantial and
meaningful way, the repair or restoration of the Premises within ninety (90)
days after such obligation shall accrue, Lessee may, at any time prior to the
commencement of such repair or restoration, give written notice to Lessor and to
any Lenders of which Lessee has actual notice of Lessee's election to terminate
this Lease on a date not less than sixty (60) days following the giving of such
notice. If Lessee gives such notice to Lessor and such Lenders and such repair
or restoration is not commenced within thirty (30) days after receipt of such
notice, this Lease shall terminate as of the date specified in said notice. If
Lessor or a Lender commences the repair or restoration of the Premises within
thirty (30) days after the receipt of such notice, this Lease shall continue in
full force and effect. "Commence" as used in this Paragraph 9.6 shall mean
either the unconditional authorization of the preparation of the required plans,
or the beginning of the actual work on the Premises, whichever occurs first.

   9.7 HAZARDOUS SUBSTANCE CONDITIONS. If a Hazardous Substance Condition
occurs, unless Lessee is legally responsible therefor (in which case Lessee
shall make the investigation and remediation thereof required by Applicable
Requirements and this Lease shall continue in tull force and effect, but subject

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to Lessor's rights under Paragraph 6.2(c) and Paragraph 13), Lessor may at
Lessor's option either (i) investigate and remediate such Hazardous Substance
Condition, if required, as soon as reasonably possible at Lessor's expense, in
which event this Lease shall continue in full force and effect, or (ii) if the
estimated cost to investigate and remediate such condition exceeds twelve (12)
times the then monthly Base Rent or $100,000 whichever is greater, give written
notice to Lessee within thirty (30) days after receipt by Lessor of knowledge of
the occurrence of such Hazardous Substance Condition of Lessor's desire to
terminate this Lease as of the date sixty (60) days following the date of such
notice. In the event Lessor elects to give such notice of Lessor's intention to
terminate this Lease, Lessee shall have the right within ten (10) days after the
receipt of such notice to give written notice to Lessor of Lessee's commitment
to pay for the excess costs of (a) investigation and remediation of such
Hazardous Substance Condition to the extent required by Applicable Requirements,
over (b) an amount equal to twelve (12) times the then monthly Base Rent or
$100,000, whichever is greater. Lessee shall provide Lessor with the funds
required of Lessee or satisfactory assurance thereof within thirty (30) days
following said commitment by Lessee. In such event this Lease shall continue in
full force and effect, and Lessor shall proceed to make such investigation and
remediation as soon as reasonably possible after the required funds are
available. If Lessee does not give such notice and provide the required funds or
assurance thereof within the time period specified above, this Lease shall
terminate as of the date specified in Lessor's notice of termination.

   9.8 TERMINATION - ADVANCE PAYMENTS. Upon termination of this Lease pursuant
to this Paragraph 9, Lessor shall return to Lessee any advance payment made by
Lessee to Lessor and so much of Lessee's Security Deposit as has not been, or is
not then required to be, used by Lessor under the terms of this Lease.

   9.9 WAIVER OF STATUTES. Lessor and Lessee agree that the terms of this Lease
shall govern the effect of any damage to or destruction of the Premises and the
Building with respect to the termination of this Lease and hereby waive the
provisions of any present or future statute to the extent it is inconsistent
herewith.

10. REAL PROPERTY TAXES.

    10.1  PAYMENT OF TAXES. Lessor shall pay the Real Property Taxes, as defined
in Paragraph 10.2, applicable to the Industrial Center, and except as otherwise
provided in Paragraph 10.3, any such amounts shall be included in the
calculation of Common Area Operating Expenses in accordance with the provisions
of Paragraph 4.2.

    10.2  REAL PROPERTY TAX DEFINITION. As used herein, the term "REAL PROPERTY
TAXES" shall include any form of real estate tax or assessment, general,
special, ordinary or extraordinary, and any license fee, commercial rental tax,
improvement bond or bonds, levy or tax (other than inheritance, personal income
or estate taxes) imposed upon the Industrial Center by any authority having the
direct or indirect power to tax, including any city, state or federal
government, or any school, agricultural, sanitary, fire, street, drainage, or
other improvement district thereof, levied against any legal or equitable
interest of Lessor in the Industrial Center or any portion thereof, Lessor's
right to rent or other income therefrom, and/or Lessor's business of leasing the
Premises. The term "REAL PROPERTY TAXES" shall also include any tax, fee, levy,
assessment or charge, or any increase therein, imposed by reason of events
occurring, or changes in Applicable Law taking effect, during the term of this
Lease, including but not limited to a change in the ownership of the Industrial
Center or in the improvements thereon, the execution of this Lease, or any
modification, amendment or transfer thereof, and whether or not contemplated by
the Parties. In calculating Real Property Taxes for any calendar year, the Real
Property Taxes for any real estate tax year shall be included in the calculation
of Real Property Taxes for such calendar year based upon the number of days
which such calendar year and tax year have in common.

    10.3  ADDITIONAL IMPROVEMENTS. Common Area Operating Expenses shall not
include Real Property Taxes specified in the tax assessor's records and work
sheets as being caused by additional improvements placed upon the Industrial
Center by other lessees or by Lessor for the exclusive enjoyment of such other
lessees. Notwithstanding Paragraph 10.1 hereof, Lessee shall, however, pay to
Lessor at the time Common Area Operating Expenses are payable under Paragraph
4.2, the entirety of any increase in Real Property Taxes if assessed solely by
reason of Alterations, Trade Fixtures or Utility Installations placed upon the
Premises by Lessee or at Lessee's request.

    10.4  JOINT ASSESSMENT. If the Building is not separately assessed, Real
Property Taxes allocated to the Building shall be an equitable proportion of the
Real Property Taxes for all of the land and improvements included within the tax
parcel assessed, such proportion to be determined by Lessor from the respective
valuations assigned in the assessor's work sheets or such other information as
may be reasonably available. Lessor's reasonable determination thereof, in good
faith, shall be conclusive.

    10.5  LESSEE'S PROPERTY TAXES. Lessee shall pay prior to delinquency all
taxes assessed against and levied upon Lessee-Owned Alterations and Utility
Installations, Trade Fixtures, furnishings, equipment and all personal property
of Lessee contained in the Premises or stored within the Industrial Center. When
possible, Lessee shall cause its Lessee-Owned Alterations and Utility
Installations, Trade Fixtures, furnishings, equipment and all other personal
property to be assessed and billed separately from the real property of Lessor.
If any of Lessee's said property shall be assessed with Lessor's real property,
Lessee shall pay Lessor the taxes attributable to Lessee's property within ten
(10) days after receipt of a written statement setting forth the taxes
applicable to Lessee's property.

11. UTILITIES. Lessee shall pay directly for all utilities and services
supplied to the Premises, including but not limited to electricity, telephone,
security, gas and cleaning of the Premises, together with any taxes thereon. If
any such utilities or services are not separately metered to the Premises or
separately billed to the Premises, Lessee shall pay to Lessor a reasonable
proportion to be determined by Lessor of all such charges jointly metered or
billed with other premises in the Building, in the manner and within the time
periods set forth in Paragraph 4.2(d).

12. ASSIGNMENT AND SUBLETTING.

    12.1  LESSOR'S CONSENT REQUIRED.

          (a) Lessee shall not voluntarily or by operation of law assign,
transfer, mortgage or otherwise transfer or encumber (collectively, "assign")
or sublet all or any part of Lessee's interest in this Lease or in the Premises
without Lessor's prior written consent given under and subject to the terms of
Paragraph 36.

          (c) The involvement of Lessee or its assets in any  transaction,  
or series of  transactions  (by way of  merger,  sale,  acquisition,  financing,
refinancing,  transfer, leveraged buy-out or otherwise), whether or not a formal
assignment  or  hypothecation  of this Lease or Lessee's  assets  occurs,  which
results or will result in a reduction of the Net Worth of Lessee, as hereinafter
defined, by an amount equal to or greater than twenty-five  percent(25%) of such
Net  Worth  of  Lessee  as it was  represented  to  Lessor  at the  time of full
execution  and  delivery  of  this  Lease  or at the  time  of the  most  recent
assignment to which Lessor has consented,  or as it exists  immediately prior to
said transaction or transactions  constituting such reduction, at whichever time
said Net Worth of Lessee was or is greater, shall be considered an assignment of
this Lease by Lessee to which Lessor may reasonably  withhold its consent.  "Net
Worth of Lessee"  for  purposes  of this lease  shall be the net worth of Lessee
(excluding any  Guarantors)  established  under  generally  accepted  accounting
principles consistently applied.

          (d) An assignment or subletting of Lessee's interest in this Lease
without Lessor's specific prior written consent shall, at Lessor's option, be a
Default curable after notice per Paragraph 13.1. or a non-curable Breach without
the necessity of any notice and grace period. If Lessor elects to treat such
unconsented to assignment or subletting as a non-curable Breach, Lessor shall
have the right to either: (i) terminate this Lease, or (ii) upon thirty (30)
days' written notice ("LESSOR'S NOTICE"), increase the monthly Base Rent for the
Premises to the greater of the then fair market rental value of the Premises, as
reasonably determined by Lessor, or one hundred ten percent (110%) of the Base
Rent then in effect. Pending determination of the new fair market rental value,
if disputed by Lessee, Lessee shall pay the amount set forth in Lessor's Notice,
with any overpayment credited against the next installment(s) of Base Rent
coming due, and any underpayment for the period retroactively to the effective
date of the adjustment being due and payable immediately upon the determination
thereof. Further, in the event of such Breach and rental adjustment, (i) the
purchase price of any option to purchase the Premises held by Lessee shall be
subject to similar adjustment to the then fair market value as reasonably
determined by Lessor (without the Lease being considered an encumbrance or any
deduction for depreciation or obsolescence, and considering the Premises at its
highest and best use and in good condition) or one hundred ten percent (110%) of
the price previously in effect, (ii) any index-oriented rental or price
adjustment formulas contained in this Lease shall be adjusted to require that
the base index be determined with reference to the index applicable to the time
of such adjustment, and (iii) any fixed rental adjustments scheduled during the
remainder of the Lease term shall be increased in the same ratio as the new
rental bears to the Base Rent in effect immediately prior to the adjustment
specified in Lessor's Notice.

          (e) Lessee's remedy for any breach of this Paragraph 12.1 by Lessor
shall be limited to compensatory damages and/or injunctive relief.

     12.2 TERMS AND CONDITIONS APPLICABLE TO ASSIGNMENT AND SUBLETTING.

          (a) Regardless of Lessor's consent, any assignment or subletting shall
not (i) be effective without the express written assumption by such assignee or
sublessee of the obligations of Lessee under this Lease, (ii) release Lessee of
any obligations hereunder, nor (iii) alter the primary liability of Lessee for
the payment of Base Rent and other sums due Lessor hereunder or for the
performance of any other obligations to be performed by Lessee under this Lease.

          (b) Lessor may accept any rent or performance of Lessee's obligations
from any person other than Lessee pending approval or disapproval of an
assignment. Neither a delay in the approval or disapproval of such assignment
nor the acceptance of any rent for performance shall constitute a waiver or
estoppel of Lessor's right to exercise its remedies for the Default or Breach by
Lessee of any of the terms, covenants or conditions of this Lease.

          (c) The consent of Lessor to any assignment or subletting shall not
constitute a consent to any subsequent assignment or subletting by Lessee or to
any subsequent or successive assignment or subletting by the assignee or
sublessee. However, Lessor may consent to subsequent sublettings and assignments
of the sublease or any amendments or modifications thereto without notifying
Lessee or anyone else liable under this Lease or the sublease and without
obtaining their consent, and such action shall not relieve such persons from
liability under this Lease or the sublease.

          (d) In the event of any Default or Breach of Lessee's obligation under
this Lease, Lessor may proceed directly against Lessee, any Guarantors or anyone
else responsible for the performance of the Lessee's obligations under this\
Lease, including any sublessee, without first exhausting Lessor's remedies
against any other person or entity responsible therefor to Lessor, or any
security held by Lessor.

          (e) Each request for consent to an assignment or subletting shall be
in writing, accompanied by information relevant to Lessor's determination as to
the financial and operational responsibility and appropriateness of the proposed
assignee or sublessee, including but not limited to the intended use and/or
required modification of the Premises, if any, together with a non-refundable
deposit of $1000.00 or ten percent (10%) of the monthly Base Rent  applicable to
the portion of the portion of the premises  which is the subject of the proposed
assignment  or sublease,  whichever is greater as reasonable  consideration  for
Lessor's  considering  and processing the request for consent.  Lessee agrees to
provide lessor with such other or additional information and/or documentation as
may be reasonably requested by Lessor.

          (f) Any assignee of, or sublessee under, this Lease shall, by reason
of accepting such assignment or entering into such sublease, be deemed, for the
benefit of Lessor, to have assumed and agreed to conform and comply with each
and every term, covenant, condition and obligation herein to be observed or
performed by Lessee during the term of said assignment or sublease, other than
such obligations as are contrary to or inconsistent with provisions of an
assignment or sublease to which Lessor has specifically consented in writing.

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          (g) the  occurrence of a transaction  described in paragraph  12.2(c)
shall  give  lessor  the right  (but not the  obligation)  to  require  that the
security  deposit  be  increased  by an  amount  equal to six (6) times the then
monthly  Base Rent,  and  Lessor  may make the  actual  receipt by Lessor of the
Security Deposit increase a condition to Lessor's consent to such transaction.

(h)  Lessor,  as a  condition  to  giving  its  consent  to  any  assignment  or
subletting,  may  require  that the amount and  adjustment  schedule of the rent
payable  under this Lease be  adjusted to what is then the market  value  and/or
adjustment schedule for property similar to the Premises as then constituted, as
determined by Lessor.

   12.3  ADDITIONAL TERMS AND CONDITIONS APPLICABLE TO SUBLETTING. The following
terms and conditions shall apply to any subletting by Lessee of all or any part
of the Premises and shall be deemed included in all subleases under this Lease
whether or not expressly incorporated therein:

         (a) Lessee hereby assigns and transfers to Lessor all of Lessee's
interest in all rentals and income arising from any sublease of all or a portion
of the Premises heretofore or hereafter made by Lessee, and Lessor may collect
such rent and income and apply same toward Lessee's obligations under this
Lease; provided, however, that until a Breach (as defined in Paragraph 13.1)
shall occur in the performance of Lessee's obligations under this Lease, Lessee
may, except as otherwise provided in this Lease, receive, collect and enjoy the
rents accruing under such sublease. Lessor shall not, by reason of the foregoing
provision or any other assignment of such sublease to Lessor, nor by reason of
the collection of the rents from a sublessee, be deemed liable to the sublessee
for any failure of Lessee to perform and comply with any of Lessee's obligations
to such sublessee under such Sublease. Lessee hereby irrevocably authorizes and
directs any such sublessee, upon receipt of a written notice from Lessor stating
that a Breach exists in the performance of Lessee's obligations under this
Lease, to pay to Lessor the rents and other charges due and to become due under
the sublease. Sublessee shall rely upon any such statement and request from
Lessor and shall pay such rents and other charges to Lessor without any
obligation or right to inquire as to whether such Breach exists and
notwithstanding any notice from or claim from Lessee to the contrary. Lessee
shall have no right or claim against such sublessee, or, until the Breach has
been cured, against Lessor, for any such rents and other charges so paid by said
sublessee to Lessor.

          (b) In the event of a Breach by Lessee in the performance of its
obligations under this Lease, Lessor, at its option and without any obligation
to do so, may require any sublessee to attorn to Lessor, in which event Lessor
shall undertake the obligations of the sublessor under such sublease from the
time of the exercise of said option to the expiration of such sublease;
provided, however, Lessor shall not be liable for any prepaid rents or security
deposit paid by such sublessee to such sublessor or for any other prior defaults
or breaches of such sublessor under such sublease.

          (c) Any matter or thing requiring the consent of the sublessor under a
sublease shall also require the consent of Lessor herein.

          (d) No sublessee under a sublease approved by Lessor shall further
assign or sublet all or any part of the Premises without Lessor's prior written
consent.

          (e) Lessor shall deliver a copy of any notice of Default or Breach by
Lessee to the sublessee, who shall have the right to cure the Default of Lessee
within the grace period, if any, specified in such notice. The sublessee shall
have a right of reimbursement and offset from and against Lessee for any such
Defaults cured by the sublessee.

13. DEFAULT; BREACH; REMEDIES.

    13.1  DEFAULT; BREACH. Lessor and Lessee agree that if an attorney is
consulted by Lessor in connection with a Lessee Default or Breach (as
hereinafter defined), $350.00 is a reasonable minimum sum per such occurrence
for legal services and costs in the preparation and service of a notice of
Default, and that Lessor may include the cost of such services and costs in said
notice as rent due and payable to cure said default. A "DEFAULT" by Lessee is
defined as a failure by Lessee to observe, comply with or perform any of the
terms, covenants, conditions or rules applicable to Lessee under this Lease. A
"BREACH" by Lessee is defined as the occurrence of any one or more of the
following Defaults, and, where a grace period for cure after notice is specified
herein, the failure by Lessee to cure such Default prior to the expiration of
the applicable grace period, and shall entitle Lessor to pursue the remedies set
forth in Paragraphs 13.2 and/or 13.3:

          (a) The vacating of the Premises without the intention to reoccupy
same, or the abandonment of the Premises.

          (b) Except as expressly otherwise provided in this Lease, the failure
by Lessee to make any payment of Base Rent, Leesee's Share of Common Area
Operating Expenses, or any other monetary payment required to be made by Lessee
hereunder as and when due, the failure by Lessee to provide Lessor with
reasonable evidence of insurance or surety bond required under this Lease, or
the failure of Lessee to fulfill any obligation under this Lease which endangers
or threatens life or property, where such failure continues for a period of
three (3) days following written notice thereof by or on behalf of Lessor to
Lessee.

          (c) Except as expressly otherwise provided in this Lease, the failure
by Lessee to provide Lessor with reasonable written evidence (in duly executed
original form, if applicable) of (i) compliance with Applicable Requirements per
Paragraph 6.3, (ii) the inspection, maintenance and service contracts required
under Paragraph 7.1(b), (iii) the rescission of an unauthorized assignment or
subletting per Paragraph 12.1, (iv) a Tenancy Statement per Paragraphs 16 or 37,
(v) the subordination or non-subordination of this Lease per Paragraph 30,
(vi) the guaranty of the performance of Lessee's obligations under this Lease if
required under Paragraphs 1.11 and 37, (vii) the execution of any document
requested under Paragraph 42 (easements), or (viii) any other documentation or
information which Lessor may reasonably require of Lessee under the terms of
this lease, where any such failure continues for a period of ten (10) days
following written notice by or on behalf of Lessor to Lessee.

          (d) A Default by Lessee as to the terms, covenants, conditions or
provisions of this Lease, or of the rules adopted under Paragraph 40 hereof that
are to be observed, complied with or performed by Lessee, other than those
described in Subparagraphs 13.1(a), (b) or (c), above, where such Default
continues for a period of thirty (30) days after written notice thereof by or on
behalf of Lessor to Lessee: provided, however, that if the nature of Lessee's
Default is such that more than thirty (30) days are reasonably required for its
cure, then it shall not be deemed to be a Breach of this Lease by Lessee if
Lessee commences such cure within said thirty (30) day period and thereafter
diligently prosecutes such cure to completion.

          (e) The occurrence of any of the following events: (i) the making by
Lessee of any general arrangement or assignment for the benefit of creditors;
(ii) Lessee's becoming a "debtor" as defined in 11 U.S. Code Section 101 or any
successor statute thereto (unless, in the case of a petition filed against
Lessee, the same is dismissed within sixty (60) days); (iii) the appointment of
a trustee or receiver to take possession of substantially all of Lessee's assets
located at the Premises or of Lessee's interest in this Lease, where possession
is not restored to Lessee within thirty (30) days; or (iv) the attachment,
execution or other judicial seizure of substantially all of Lessee's assets
located at the Premises or of Lessee's interest in this Lease, where such
seizure is not discharged within thirty (30) days; provided, however, in the
event that any provision of this Subparagraph 13.1(e) is contrary to any
applicable law, such provision shall be of no force or effect, and shall not
affect the validity of the remaining provisions.

          (f) The discovery by Lessor that any financial statement of Lessee or
of any Guarantor, given to Lessor by Lessee or any Guarantor, was materially
false.

          (g) If the performance of Lessee's obligations under this Lease is
guaranteed: (i) the death of a Guarantor, (ii) the termination of a Guarantor's
liability with respect to this Lease other than in accordance with the terms of
such guaranty, (iii) a Guarantor's becoming insolvent or the subject of a
bankruptcy filing, (iv) a Guarantor's refusal to honor the guaranty, or (v) a
Guarantor's breach of its guaranty obligation on an anticipatory breach basis,
and Lessee's failure, within sixty (60) days following written notice by or on
behalf of Lessor to Lessee of any such event, to provide Lessor with written
alternative assurances of security, which, when coupled with the then existing
resources of Lessee, equals or exceeds the combined financial resources of
Lessee and the Guarantors that existed at the time of execution of this Lease.

   13.2  REMEDIES. If Lessee fails to perform any affirmative duty or obligation
of Lessee under this Lease, within ten (10) days after written notice to Lessee
(or in case of an emergency, without notice), Lessor may at its option (but
without obligation to do so), perform such duty or obligation on Lessee's
behalf, including but not limited to the obtaining of reasonably required bonds,
insurance policies, or governmental licenses, permits or approvals. The costs
and expenses of any such performance by Lessor shall be due and payable by
Lessee to Lessor upon invoice therefor. If any check given to Lessor by Lessee
shall not be honored by the bank upon which it is drawn, Lessor, at its own
option, may require all future payments to be made under this Lease by Lessee to
be made only by cashier's check. In the event of a Breach of this Lease by
Lessee (as defined in Paragraph 13.1), with or without further notice or demand,
and without limiting Lessor in the exercise of any right or remedy which Lessor
may have by reason of such Breach, Lessor may:

         (a) Terminate Leesee's right to possession of the Premises by any
lawful means, in which case this Lease and the term hereof shall terminate and
Lessee shall immediately surrender possession of the Premises to Lessor. In such
event Lessor shall be entitled to recover from Lessee: (i) the worth at the time
of the award of the unpaid rent which had been earned at the time of
termination; (ii) the worth at the time of award of the amount by which the
unpaid rent which would have been earned after termination until the time of
award exceeds the amount of such rental loss that the Lessee proves could have
been reasonably avoided; (iii) the worth at the time of award of the amount by
which the unpaid rent for the balance of the term after the time of award
exceeds the amount of such rental loss that the Lessee proves could be
reasonably avoided; and (iv) any other amount necessary to compensate Lessor for
all the detriment proximately caused by the Lessee's failure to perform its
obligations under this Lease or which in the ordinary course of things would be
likely to result therefrom, including but not limited to the cost of recovering
possession of the Premises, expenses of reletting, including necessary
renovation and alteration of the Premises, reasonable attorneys' fees, and that
portion of any leasing commission paid by Lessor in connection with this Lease
applicable to the unexpired term of this Lease. The worth at the time of award
of the amount referred to in provision (iii) of the immediately preceding
sentence shall be computed by discounting such amount at the discount rate of
the Federal Reserve Bank of San Francisco or the Federal Reserve Bank District
in which the Premises are located at the time of award plus one percent (1%).
Efforts by Lessor to mitigate damages caused by Lessee's Default or Breach of
this Lease shall not waive Lessor's right to recover damages under this
Paragraph 13.2. If termination of this Lease is obtained through the provisional
remedy of unlawful detainer, Lessor shall have the right to recover in such
proceeding the unpaid rent and damages as are recoverable therein, or Lessor may
reserve the right to recover all or any part thereof in a separate suit for such
rent and/or damages. If a notice and grace period required under Subparagraph
13.1(b), (c) or (d) was not previously given, a notice to pay rent or quit, or
to perform or quit, as the case may be, given to Lessee under any statute
authorizing the forfeiture of leases for unlawful detainer shall also constitute
the applicable notice for grace period purposes required by Subparagraph 13.1
(b),(c) or (d). In such case, the applicable grace period under the unlawful
detainer statute shall run concurrently after the one such statutory notice, and
the failure of Lessee to cure the Default within the greater of the two (2) such
grace periods shall constitute both an unlawful detainer and a Breach of this
Lease entitling Lessor to the remedies provided for in this Lease and/or by said
statute.

          (b) Continue the Lease and Lessee's right to possession in effect (in
California under California Civil Code Section 1951.4) after Lessee's Breach and
recover the rent as it becomes due, provided Lessee has the right to sublet or
assign, subject only to reasonable limitations. Lessor and Lessee agree that the
limitations on assignment and subletting in this Lease are reasonable. Acts of
maintenance or preservation, efforts to relet the Premises, or the appointment
of a receiver to protect the Lessor's interest under this Lease, shall not
constitute a termination of the Lessee's right to possession.

          (c) Pursue any other remedy now or hereafter available to Lessor under
the laws or judicial decisions of the state wherein the Premises are located.

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         (d) The expiration or termination of this Lease and/or the termination
of Lessee's right to possession shall not relieve Lessee from liability under
any indemnity provisions of this Lease as to matters occurring or accruing
during the term hereof or by reason of Lessee's occupancy of the Premises.

   13.3  INDUCEMENT RECAPTURE IN EVENT OF BREACH. Any agreement by Lessor for
free or abated rent or other charges applicable to the Premises, or for the
giving or paying by Lessor to or for Lessee of any cash or other bonus,
inducement or consideration for Lessee's entering into this Lease, all of which
concessions are hereinafter referred to as "INDUCEMENT PROVISIONS" shall be
deemed conditioned upon Lessee's full and faithful performance of all of the
terms, covenants and conditions of this Lease to be performed or observed by
Lessee during the term hereof as the same may be extended. Upon the occurrence
of a Breach (as defined in Paragraph 13.1) of this Lease by Lessee, any such
Inducement Provision shall automatically be deemed deleted from this Lease and
of no further force or effect, and any rent, other charge, bonus, inducement or
consideration theretofore abated, given or paid by Lessor under such an
Inducement Provision shall be immediately due and payable by Lessee to Lessor,
and recoverable by Lessor, as additional rent due under this Lease,
notwithstanding any subsequent cure of said Breach by Lessee. The acceptance by
Lessor of rent or the cure of the Breach which initiated the operation of this
Paragraph 13.3 shall not be deemed a waiver by Lessor of the provisions of this
Paragraph 13.3 unless specifically so stated in writing by Lessor at the time of
such acceptance.

   13.4  LATE CHARGES. Lessee hereby acknowledges that late payment by Lessee to
Lessor of rent and other sums due hereunder will cause Lessor to incur costs not
contemplated by this Lease, the exact amount of which will be extremely
difficult to ascertain. Such costs include, but are not limited to, processing
and accounting charges, and late charges which may be imposed upon Lessor by the
terms of any ground lease, mortgage or deed of trust covering the Premises.
Accordingly, if any installment of rent or other sum due from Lessee shall not
be received by Lessor or Lessor's designee within ten (10) days after such
amount shall be due, then, without any requirement for notice to Lessee, Lessee
shall pay to Lessor a late charge equal to six percent (6%) of such overdue
amount. The parties hereby agree that such late charge represents a fair and
reasonable estimate of the costs Lessor will incur by reason of late payment by
Lessee. Acceptance of such late charge by Lessor shall in no event constitute a
waiver of Lessee's Default or Breach with respect to such overdue amount, nor
prevent Lessor from exercising any of the other rights and remedies granted
hereunder. In the event that a late charge is payable hereunder, whether or not
collected, for three (3) consecutive installments of Base Rent, then
notwithstanding Paragraph 4.1 or any other provision of this Lease to the
contrary, Base Rent shall, at Lessor's option, become due and payable quarterly
in advance.

   13.5  BREACH BY LESSOR. Lessor shall not be deemed in breach of this Lease
unless Lessor fails within a reasonable  time to perform an obligation  required
to be performed by Lessor.  For  purposes of this  paragraph  13.5, a reasonable
time shall in no event be less than  thirty  (30) days after  receipt by Lessor,
and by any Lender(s)  whose name and address shall have been furnished to Lessee
in  writing  for  such  purpose,  of  written  notice  specifying  wherein  such
obligation  of Lessor has not been  performed;  provided,  however,  that if the
nature of Lessor's  obligation is such that more than thiry (30) days after such
notice are reasonably required for its performance,  then Lessor shall not be in
breach of this Lease if  performance  is  commenced  within such thirty (30) day
period and thereafter diligently pursued to completion.

   14.   CONDEMNATION. If the Premises or any portion thereof are taken under
the power of eminent domain or sold under the threat of the exercise of said
power (all of which are herein called "condemnation"), this Lease shall
terminate as to the part so taken as of the date the condemning authority takes
title or possession, whichever first occurs. If more than ten percent (10%) of
the floor area of the Premises, or more than twenty-five percent (25%) of the
portion of the Common Areas designated for Lessee's parking, is taken by
condemnation, Lessee may, at Lessee's option, to be exercised in writing within
ten (10) days after Lessor shall have given Lessee written notice of such taking
(or in the absence of such notice, within ten (10) days after the condemning
authority shall have taken possession) terminate this Lease as of the date the
condemning authority takes such possession. If Lessee does not terminate this
Lease in accordance with the foregoing, this Lease shall remain in full force
and effect as to the portion of the Premises remaining, except that the Base
Rent shall be reduced in the same proportion as the rentable floor area of the
Premises taken bears to the total rentable floor area of the Premises. No
reduction of Base Rent shall occur if the condemnation does not apply to any
portion of the Premises. Any award for the taking of all or any part of the
Premises under the power of eminent domain or any payment made under threat of
the exercise of such power shall be the property of Lessor, whether such award
shall be made as compensation for diminution of value of the leasehold or for
the taking of the fee, or as severance damages; provided, however, that Lessee
shall be entitled to any compensation, separately awarded to Lessee for Lessee's
relocation expenses and/or loss of Lessee's Trade Fixtures. In the event that
this Lease is not terminated by reason of such condemnation, Lessor shall to the
extent of its net severance damages received, over and above Lessee's Share of
the legal and other expenses incurred by Lessor in the condemnation matter,
repair any damage to the Premises caused by such condemnation authority. Lessee
shall be responsible for the payment of any amount in excess of such net
severance damages required to complete such repair.

15.  BROKERS' FEES

     15.4  REPRESENTATIONS AND WARRANTIES. Lessee and Lessor each represent and
warrant to the other that it has had no dealings with any person,  firm,  broker
or  finder  in  connection  with  the  negotiation  of  this  Lease  and/or  the
consummation of the transaction contemplated hereby, and that no broker or other
person,  firm or entity  other  than said named  Broker(s)  is  entitled  to any
commission  or finder's  fee in  connection  with said  transaction.  Lessee and
Lessor do each hereby  agree to  indemnify,  protect,  defend and hold the other
harmless  from and against  liability for  compensation  or charges which may be
claimed by any such unnamed  broker,  finder or other similar party by reason of
any  dealings  or  actions  of the  indemnifying  Party,  including  any  costs,
expenses, and/or attorneys' fees reasonably incurred with respect thereto.

16.  TENANCY AND FINANCIAL STATEMENTS.

     16.1  TENANCY STATEMENT. Each Party (as "RESPONDING PARTY") shall within
ten (10) days after written notice from the other Party (the "REQUESTING PARTY")
execute, acknowledge and deliver to the Requesting Party a statement in writing
in a form similar to the then most current "TENANCY STATEMENT" form published by
the American Industrial Real Estate Association, plus such additional
information, confirmation and/or statements as may be reasonably requested by
the Requesting Party.

     16.2  FINANCIAL STATEMENT. If Lessor desires to finance, refinance, or sell
the Premises or the Building, or any part thereof, Lessee and all Guarantors
shall deliver to any potential lender or purchaser designated by Lessor such
financial statements of Lessee and such Guarantors as may be reasonably required
by such lender or purchaser, including but not limited to Lessee's financial
statements for the past three (3) years. All such financial statements shall be
received by Lessor and such lender or purchaser in confidence and shall be used
only for the purposes herein set forth.

17.  LESSOR'S LIABILITY. The term "LESSOR" as used herein shall mean the owner
or owners at the time in question of the fee title to the Premises. In the event
of a transfer of Lessor's title or interest in the Premises or in this Lease,
Lessor shall deliver to the transferee or assignee (in cash or by credit) any
unused Security Deposit held by Lessor at the time of such transfer or
assignment. Except as provided in Paragraph 15.3, upon such transfer or
assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor
shall be relieved of all liability with respect to the obligations and/or
covenants under this Lease thereafter to be performed by the Lessor. Subject to
the foregoing, the obligations and/or covenants in this Lease to be performed by
the Lessor shall be binding only upon the Lessor as hereinabove defined.

18.  SEVERABILITY. The invalidity of any provision of this Lease, as determined
by a court of competent jurisdiction, shall in no way affect the validity of any
other provision hereof.

19.  INTEREST ON PAST-DUE OBLIGATIONS. Any monetary payment due Lessor
hereunder, other than late charges, not received by Lessor within ten (10) days
following the date on which it was due, shall bear interest from the date due
at the prime rate charged by the largest state chartered bank in the state in
which the Premises are located plus four percent (4%) per annum, but not
exceeding the maximum rate allowed by law, in addition to the potential late
charge provided for in Paragraph 13.4.

20.  TIME OF ESSENCE. Time is of the essence with respect to the performance
of all obligations to be performed or observed by the Parties under this Lease.

21.  RENT DEFINED. All monetary obligations of Lessee to Lessor under the
terms of this Lease are deemed to be rent.

22.  NO PRIOR OR OTHER AGREEMENTS This Lease contains
all agreements between the Parties with respect to any matter mentioned herein,
and no other prior or contemporaneous agreement or understanding shall be
effective. Lessor and Lessee each represents and warrants to the Brokers that it
has made, and is relying solely upon, its own investigation as to the nature,
quality, character and financial responsibility of the other Party to this Lease
and as to the nature, quality and character of the Premises. 

23.  NOTICES.

   23.1  NOTICE REQUIREMENTS. All notices required or permitted by this Lease
shall be in writing and may be delivered in person (by hand or by messenger or
courier service) or may be sent by regular, certified or registered mail or U.S.
Postal Service Express Mail, with postage prepaid, or by facsimile transmission
during normal business hours, and shall be deemed sufficiently given if served
in a manner specified in this Paragraph 23. The addresses noted adjacent to a
Party's signature on this Lease shall be that Party's address for delivery or
mailing of notice purposes. Either Party may by written notice to the other
specify a different address for notice purposes, except that upon Lessee's
taking possession of the Premises, the Premises shall constitute Lessee's
address for the purpose of mailing or delivering notices to Lessee. A copy of
all notices required or permitted to be given to Lessor hereunder shall be
concurrently transmitted to such party or parties at such addresses as Lessor
may from time to time hereafter designate by written notice to Lessee.

   23.2  DATE OF NOTICE. Any notice sent by registered or certified mail, return
receipt requested, shall be deemed given on the date of delivery shown on the
receipt card, or if no delivery date is shown, the postmark thereon. If sent by
regular mail, the notice shall be deemed given forty-eight (48) hours after the
same is addressed as required herein and mailed with postage prepaid. Notices
delivered by United States Express Mail or overnight courier that guarantees
next day

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delivery shall be deemed given twenty-four (24) hours after delivery of the same
to the United States Postal Service or courier. If any notice is transmitted by
facsimile transmission or similar means, the same shall be deemed served or
delivered upon telephone or facsimile confirmation of receipt of the
transmission thereof, provided a copy is also delivered via delivery or mail. If
notice is received on a Saturday or a Sunday or a legal holiday, it shall be
deemed received on the next business day.

24.  WAIVERS. No waiver by Lessor of the Default or Breach of any term, covenant
or condition hereof by Lessee, shall be deemed a waiver of any other term,
covenant or condition hereof, or of any subsequent Default or Breach by Lessee
of the same or any other term, covenant or condition hereof. Lessor's consent
to, or approval of, any such act shall not be deemed to render unnecessary the
obtaining of Lessor's consent to, or approval of, any subsequent or similar act
by Lessee, or be construed as the basis of an estoppel to enforce the
provision or provisions of this Lease requiring such consent. Regardless of
Lessor's knowledge of a Default or Breach at the time of accepting rent, the
acceptance of rent by Lessor shall not be a waiver of any Default or Breach by
Lessee of any provision hereof. Any payment given Lessor by Lessee may be
accepted by Lessor on account of moneys or damages due Lessor, notwithstanding
any qualifying statements or conditions made by Lessee in connection therewith,
which such statements and/or conditions shall be of no force or effect
whatsoever unless specifically agreed to in writing by Lessor at or before the
time of deposit of such payment.

25.  RECORDING. Either Lessor or Lessee shall, upon request of the other,
execute, acknowledge and deliver to the other a short form memorandum of this
Lease for recording purposes. The Party requesting recordation shall be
responsible for payment of any fees or taxes applicable thereto.

26. NO RIGHT TO HOLDOVER. Lessee has no right to retain possession of the
Premises or any part thereof beyond the expiration or earlier termination of
this Lease. In the event that Lessee holds over in violation of this Paragraph
26 then the Base Rent payable from and after the time of the expiration or
earlier termination of this Lease shall be increased to two hundred 
percent (200%) of the Base Rent applicable during the month immediately
preceding such expiration or earlier termination. Nothing contained herein shall
be construed as a consent by Lessor to any holding over by Lessee.

27.  CUMULATIVE REMEDIES. No remedy or election hereunder shall be deemed
exclusive but shall, wherever possible, be cumulative with all other remedies at
law or in equity.

28.  COVENANTS AND CONDITIONS. All provisions of this Lease to be observed or
performed by Lessee are both covenants and conditions.

29.  BINDING EFFECT; CHOICE OF LAW. This Lease shall be binding upon the
Parties, their personal representatives, successors and assigns and be governed
by the laws of the State in which the Premises are located. Any litigation
between the Parties hereto concerning this Lease shall be initiated in the
county in which the Premises are located.

30. SUBORDINATION; ATTORNMENT; NON-DISTURBANCE.

    30.1  SUBORDINATION. This Lease and any Option granted hereby shall be
subject and subordinate to any ground lease, mortgage, deed of trust, or other
hypothecation or security device (collectively, "SECURITY DEVICE"), now or
hereafter placed by Lessor upon the real property of which the Premises are a
part, to any and all advances made on the security thereof, and to all renewals,
modifications, consolidations, replacements and extensions thereof. Lessee
agrees that the Lenders holding any such Security Device shall have no duty,
liability or obligation to perform any of the obligations of Lessor under this
Lease, but that in the event of Lessor's default with respect to any such
obligation, Lessee will give any Lender whose name and address have been
furnished Lessee in writing for such purpose notice of Lessor's default pursuant
to Paragraph 13.5. If any Lender shall elect to have this Lease and/or any
Option granted hereby superior to the lien of its Security Device and shall give
written notice thereof to Lessee, this Lease and such Options shall be deemed
prior to such Security Device, notwithstanding the relative dates of the
documentation or recordation thereof.

    30.2  ATTORNMENT. Subject to the non-disturbance provisions of Paragraph
30.3, Lessee agrees to attorn to a Lender or any other party who acquires
ownership of the Premises by reason of a foreclosure of a Security Device, and
that in the event of such foreclosure, such new owner shall not: (i) be liable
for any act or omission of any prior lessor or with respect to events occurring
prior to acquisition of ownership, (ii) be subject to any offsets or defenses
which Lessee might have against any prior lessor, or (iii) be bound by
prepayment of more than one month's rent.

    30.3  NON-DISTURBANCE. With respect to Security Devices entered into by
Lessor after the execution of this lease, Lessee's subordination of this Lease
shall be subject to receiving assurance (a "non-disturbance agreement") from the
Lender that Lessee's possession and this Lease, including any options to extend
the term hereof, will not be disturbed so long as Lessee is not in Breach hereof
and attorns to the record owner of the Premises.

    30.4  SELF-EXECUTING. The agreements contained in this Paragraph 30 shall be
effective without the execution of any further documents; provided, however,
that upon written request from Lessor or a Lender in connection with a sale,
financing or refinancing of Premises, Lessee and Lessor shall execute such
further writings as may be reasonably required to separately document any such
subordination or non-subordination, attornment and/or non disturbance agreement
as is provided for herein.

31.  ATTORNEYS' FEES. If any Party  brings an action or proceeding
to enforce the terms hereof or declare rights hereunder, the Prevailing Party
(as hereafter defined) in any such proceeding, action, or appeal thereon, shall
be entitled to reasonable attorneys' fees. Such fees may be awarded in the same
suit or recovered in a separate suit, whether or not such action or proceeding
is pursued to decision or judgment. The term "PREVAILING PARTY" shall include,
without limitation, a Party  who substantially obtains or defeats the
relief sought, as the case may be, whether by compromise, settlement, judgment,
or the abandonment by the other Party  of its claim or defense. The
attorneys' fee award shall not be computed in accordance with any court fee
schedule, but shall be such as to fully reimburse all attorneys' fees reasonably
incurred. Lessor shall be entitled to attorneys' fees, costs and expenses
incurred in preparation and service of notices of Default and consultations in
connection therewith, whether or not a legal action is subsequently commenced in
connection with such Default or resulting Breach. 

32.  LESSOR'S ACCESS; SHOWING PREMISES; REPAIRS. Lessor and Lessor's agents
shall have the right to enter the Premises at any time, in the case of an
emergency, and otherwise at reasonable times for the purpose of showing the same
to prospective purchasers, lenders, or lessees, and making such alterations,
repairs, improvements or additions to the Premises or to the Building, as Lessor
may reasonably deem necessary. Lessor may at any time place on or about the
Premises or Building any ordinary "For Sale" signs and Lessor may at any time
during the last one hundred eighty (180) days of the term hereof place on or
about the Premises any ordinary "For Lease" signs. All such activities of Lessor
shall be without abatement of rent or liability to Lessee.

33.  AUCTIONS. Lessee shall not conduct, nor permit to be conducted, either
voluntarily or involuntarily, any auction upon the Premises without first having
obtained Lessor's prior written consent. Notwithstanding anything to the
contrary in this Lease, Lessor shall not be obligated to exercise any standard
of reasonableness in determining whether to grant such consent.

34.  SIGNS. Lessee shall not place any sign upon the exterior of the Premises
or the Building, except that Lessee may, with Lessor's prior written consent,
install (but not on the roof) such signs as are reasonably required to advertise
Lessee's own business so long as such signs are in a location designated by
Lessor and comply with Applicable Requirements and the signage criteria
established for the Industrial Center by Lessor. The installation of any sign on
the Premises by or for Lessee shall be subject to the provisions of Paragraph 7
(Maintenance, Repairs, Utility Installations, Trade Fixtures and Alterations).
Unless otherwise expressly agreed herein, Lessor reserves all rights to the use
of the roof of the Building, and the right to install advertising signs on the
Building, including the roof, which do not unreasonably interfere with the
conduct of Lessee's business; Lessor shall be entitled to all revenues from such
advertising signs.

35.  TERMINATION; MERGER. Unless specifically stated otherwise in writing by
Lessor, the voluntary or other surrender of this Lease by Lessee, the mutual
termination or cancellation hereof, or a termination hereof by Lessor for Breach
by Lessee, shall automatically terminate any sublease or lesser estate in the
Premises; provided, however, Lessor shall, in the event of any such surrender,
termination or cancellation, have the option to continue any one or all of any
existing subtenancies. Lessor's failure within ten (10) days following any such
event to make a written election to the contrary by written notice to the holder
of any such lesser interest, shall constitute Lessor's election to have such
event constitute the termination of such interest.

36. CONSENTS.

       (a) Except for Paragraph 33 hereof (Auctions) or as otherwise provided
herein, wherever in this Lease the consent of a Party is required to an act by
or for the other Party, such consent shall not be unreasonably withheld or
delayed. Lessor's actual reasonable costs and expenses (including but not
limited to architects', attorneys', engineers' and other consultants' fees)
incurred in the consideration of, or response to, a request by Lessee for any
Lessor consent pertaining to this Lease or the Premises, including but not
limited to consents to an assignment a subletting or the presence or use of a
Hazardous Substance, shall be paid by Lessee to Lessor upon receipt of an
invoice and supporting documentation therefor. In addition to the deposit
described in Paragraph 12.2(e), Lessor may, as a condition to considering any
such request by Lessee, require that Lessee deposit with Lessor an amount of
money (in addition to the Security Deposit held under Paragraph 5) reasonably
calculated by Lessor to represent the cost Lessor will incur in considering and
responding to Lessee's request. Any unused portion of said deposit shall be
refunded to Lessee without interest. Lessor's consent to any act, assignment of
this Lease or subletting of the Premises by Lessee shall not constitute an
acknowledgment that no Default or Breach by Lessee of this Lease exists, nor
shall such consent be deemed a waiver of any then existing Default or Breach,
except as may be otherwise specifically stated in writing by Lessor at the time
of such consent.

       (b) All conditions to Lessor's consent authorized by this Lease are
acknowledged by Lessee as being reasonable. The failure to specify herein any
particular condition to Lessor's consent shall not preclude the impositions by
Lessor at the time of consent of such further or other conditions as are then
reasonable with reference to the particular matter for which consent is being
given.

37. GUARANTOR.

    37.1  FORM OF GUARANTY. If there are to be any Guarantors of this Lease per
Paragraph 1.11, the form of the guaranty to be executed by each such Guarantor
shall be in the form most recently published by the American Industrial Real
Estate Association, and each such Guarantor shall have the same obligations as
Lessee under this lease, including but not limited to the obligation to provide
the Tenancy Statement and information required in Paragraph 16.

    37.2  ADDITIONAL OBLIGATIONS OF GUARANTOR. It shall constitute a Default of
the Lessee under this Lease if any such Guarantor fails or refuses, upon
reasonable request by Lessor to give: (a) evidence of the due execution of the
guaranty called for by this Lease, including the authority of the Guarantor (and
of the party signing on Guarantor's behalf) to obligate such Guarantor on said
guaranty, and resolution of its board of directors authorizing the making of
such guaranty, together with a certificate of incumbency showing the signatures
of the persons authorized to sign on its behalf, (b) current financial
statements of Guarantor as may from time to time be requested by Lessor, (c) a
Tenancy Statement, or (d) written confirmation that the guaranty is still in
effect.

38.  QUIET POSSESSION. Upon payment by Lessee of the rent for the Premises
and the performance of all of the covenants, conditions and provisions on
Lessee's part to be observed and performed under this Lease, Lessee shall have
quiet possession of the Premises for the entire term hereof subject to all of
the provisions of this Lease.

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39. OPTIONS

    39.1  DEFINITION. As used in this Lease, the word "OPTION" has the following
meaning: (a) the right to extend the term of this Lease or to renew this Lease
or to extended or renew any lease that Lessee has on other property of Lessor;
(b) the right of first refusal to lease the Premises or the right of first offer
to lease the Premises or the right of first refusal to lease other property of
Lessor or the right of first offer to lease other property of Lessor; (c) the
right to purchase the Premises, or the right of first refusal to purchase the
Premises, or the right of first offer to purchase the Premises, or the right to
purchase other property of Lessor, or the right of first refusal to purchase
other property of Lessor, or the right of first offer to purchase other property
of Lessor.

    39.2  OPTIONS PERSONAL TO ORIGINAL LESSEE. Each Option granted to Lessee in
this Lease is personal to the original Lessee named in Paragraph 1.1 hereof, and
cannot be voluntarily or involuntarily assigned or exercised by any person or
entity other than said original Lessee while the original Lessee is in full and
actual possession of the Premises and without the intention of thereafter
assigning or subletting. The Options, if any, herein granted to Lessee are not
assignable, either as a part of an assignment of this Lease or separately or
apart therefrom, and no Option may be separated from this Lease in any manner,
by reservation or otherwise.

    39.3  MULTIPLE OPTIONS. In the event that Lessee has any multiple Options to
extend or renew this Lease, a later option cannot be exercised unless the prior
Options to extend or renew this Lease have been validly exercised.

    39.4  EFFECT OF DEFAULT ON OPTIONS.

          (a) Lessee shall have no right to exercise an Option, notwithstanding
any provision in the grant of Option to the contrary: (i) during the period
commencing with the giving of any notice of Default under Paragraph 13.1 and
continuing until the noticed Default is cured, or (ii) during the period of time
any monetary obligation due Lessor from Lessee is unpaid (without regard to
whether notice thereof is given Lessee), or (iii) during the time Lessee is in
Breach of this Lease, or (iv) in the event that Lessor has given to Lessee three
(3) or more notices of separate Defaults under Paragraph 13.1 during the twelve
(12) month period immediately preceding the exercise of the Option, whether or
not the Defaults are cured.

          (b) The period of time within which an Option may be exercised shall
not be extended or enlarged by reason of Lessee's inability to exercise an
Option because of the provisions of Paragraph 39.4(a)

          (c) All rights of Lessee under the provisions of an Option shall
terminate and be of no further force or effect, notwithstanding Lessee's due and
timely exercise of the Option, if, after such exercise and during the term of
this Lease, (i) Lessee fails to pay to Lessor a monetary obligation of Lessee
for a period of thirty (30) days after such obligation becomes due (without any
necessity of Lessor to give notice thereof to Lessee), or (ii) Lessor gives to
Lessee three (3) or more notices of separate Defaults under Paragraph 13.1
during any twelve (12) month period, whether or not the Defaults are cured, or
(iii) if Lessee commits a Breach of this Lease.

40.  RULES AND REGULATIONS. Lessee agrees that it will abide by, and keep and
observe all reasonable rules and regulations ("Rules and Regulations") which
Lessor may make from time to time for the management, safety, care, and
cleanliness of the grounds, the parking and unloading of vehicles and the
preservation of good order, as well as for the convenience of other occupants or
tenants of the Building and the Industrial Center and their invitees.

41.  SECURITY MEASURES. Lessee hereby acknowledges that the rental payable to
Lessor hereunder does not include the cost of guard service or other security
measures, and that Lessor shall have no obligation whatsoever to provide same.
Lessee assumes all responsibility for the protection of the Premises, Lessee,
its agents and invitees and their property from the acts of third parties.

42.  RESERVATIONS. Lessor reserves the right, from time to time, to grant,
without the consent or joinder of Lessee, such easements, rights of way,
utility raceways, and dedications that Lessor deems necessary, and to cause the
recordation of parcel maps and restrictions, so long as such easements, rights
of way, utility raceways, dedications, maps and restrictions do not reasonably
interfere with the use of the Premises by Lessee. Lessee agrees to sign any
documents reasonably requested by Lessor to effectuate any such easement
rights, dedication, map or restrictions.

43.  PERFORMANCE UNDER PROTEST. If at any time a dispute shall arise as to
any amount or sum of money to be paid by one Party to the other under the
provisions hereof, the Party against whom the obligation to pay the money is
asserted shall have the right to make payment "under protest" and such payment
shall not be regarded as a voluntary payment and there shall survive the right
on the part of said Party to institute suit for recovery of such sum. If it
shall be adjudged that there was no legal obligation on the part of said Party
to pay such sum or any part thereof, said Party shall be entitled to recover
such sum or so much thereof as it was not legally required to pay under the
provisions of this Lease.

44.  AUTHORITY. If either Party hereto is a corporation, trust, or general or
limited partnership, each individual executing this Lease on behalf of such
entity represents and warrants that he or she is duly authorized to execute and
deliver this Lease on its behalf. If Lessee is a corporation, trust or
partnership, Lessee shall, within thirty (30) days after request by Lessor,
deliver to Lessor evidence satisfactory to Lessor of such authority.

45.  CONFLICT. Any conflict between the printed provisions of this Lease and
the typewritten or handwritten provisions shall be controlled by the typewritten
or handwritten provisions.

46.  OFFER. Preparation of this Lease by either Lessor or Lessee or Lessor's
agent or Lessee's agent and submission of same to Lessee or Lessor shall not be
deemed an offer to lease. This Lease is not intended to be binding until
executed and delivered by all Parties hereto.

47.  AMENDMENTS. This Lease may be modified only in writing, signed by the
parties in interest at the time of the modification. The Parties shall amend
this Lease from time to time to reflect any adjustments that are made to the
Base Rent or other rent payable under this Lease. As long as they do not
materially change Lessee's obligations hereunder, Lessee agrees to make such
reasonable non-monetary modifications to this Lease as may be reasonably
required by an institutional insurance company or pension plan Lender in
connection with the obtaining of normal financing or refinancing of the property
of which the Premises are a part.

48.  MULTIPLE PARTIES. Except as otherwise expressly provided herein, if more
than one person or entity is named herein as either Lessor or Lessee, the
obligations of such multiple parties shall be the joint and several
responsibility of all persons or entities named herein as such Lessor or Lessee.

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LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND
PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR
INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE
TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE
AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE
PREMISES.

     IF THIS LEASE HAS BEEN FILLED IN, IT HAS BEEN PREPARED FOR YOUR ATTORNEY'S
     REVIEW AND APPROVAL. FURTHER, EXPERTS SHOULD BE CONSULTED TO EVALUATE THE
     CONDITION OF THE PROPERTY FOR THE POSSIBLE PRESENCE OF ASBESTOS,
     UNDERGROUND STORAGE TANKS OR HAZARDOUS SUBSTANCES. NO REPRESENTATION OR
     RECOMMENDATION IS MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION
     OR BY THE REAL ESTATE BROKERS OR THEIR CONTRACTORS, AGENTS OR EMPLOYEES AS
     TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE
     OR THE TRANSACTION TO WHICH IT RELATES; THE PARTIES SHALL RELY SOLELY UPON
     THE ADVICE OF THEIR OWN COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF
     THIS LEASE. IF THE SUBJECT PROPERTY IS IN A STATE OTHER THAN CALIFORNIA, AN
     ATTORNEY FROM THE STATE WHERE THE PROPERTY IS LOCATED SHOULD BE CONSULTED.

The parties hereto have executed this Lease at the place and on the dates
specified above their respective signatures.

                                                  
Executed at:     CAMARILLO, CA                   Executed at:     CAMARILLO, CA
            ---------------------                -----------------------------
on:              3-13-98                         on:              
   ------------------------------                ------------------------------
 
By LESSEE:                                       By LESSEE:
 
  High Tech No. 1, Ltd.                                Advanced Photonix, Inc.
- -------------------------------             ---------------------------------

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

By: /s/ Rod Gilbert                              By: /s/ P. J. Holmes
   -----------------------------                -------------------------------
 
Name Printed:  Rod Gilbert                      Name Printed:  Patrick J. Holmes
             -------------------                -------------------------------
 
Title:         Vice President                  Title:  Executive Vice President
       -------------------------              ---------------------------------

 
Address:  621 Via Alondra, Suite 602           Address:  1240 Avenida Acaso
        ----------------------------           --------------------------------

          Camarillo, CA 93012-8095             Camarillo, CA  93012             
        ----------------------------           --------------------------------
 
Telephone:  (805) 388-4757                     Telephone:  (805) 987-0146
        ---------------------------            --------------------------------

Facsimile:  (905) 388-9037                     Facsimile:  (805) 484-9935
        ---------------------------            --------------------------------

 
 

NOTE: These forms are often modified to meet changing requirements of law and
needs of the industry. Always write or call to make sure you are utilizing the
most current form: AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION, 345 So. Figueroa
St., M-1, Los Angeles, CA 90071. (213) 687-8777.

                                                                  Initials: PH
                                                                           -----
                                                                            RG
                                                                           -----


(C) American Industrial Real Estate Association 1993 MULTI-TENANT--MODIFIED NET

<PAGE>

ADDENDUM ONE TO STANDARD INDUSTRIAL/COMMERCIAL  MULTI-TENANT LEASE-MODIFIED NET,
DATED  FEBRUARY  23,  1998,  BY AND BETWEEN  HIGH TECH NO. 1, LTD., A CALIFORNIA
LIMITED  PARTNERSHIP,  AS  LESSOR,  AND  ADVANCED  PHOTONIX,  INC.,  A  DELAWARE
CORPORATION,  AS  LESSEE,  FOR  THE  PROPERTY  LOCATED  AT 1240  AVENIDA  ACASO,
CAMARILLO, CALIFORNIA

Paragraph 1.5 (Continued) Base Rent:

The Base Rent for the Premises shall be as follows:

March 1, 1998-March 31, 1998                         $24,686.29 per month
April 1, 1998-April 30, 1998                          $1,122.29 per month
May 1, 1998-August 31, 1998                          $24,686.29 per month
September 1, 1998-February 28, 1999                  $23,564.00 per month
March 1, 1999-February 29, 2000                      $24,153.00 per month
March 1, 2000-February 28, 2001                      $24,757.00 per month
March 1, 2001-February 28, 2002                      $25,376.00 per month
March 1, 2002-February 28, 2003                      $26,010.00 per month
March 1, 2003-February 29, 2004                      $26,661.00 per month

Paragraph 6.2( c ) (Continued) Indemnification

Notwithstanding  anything to the contrary  contained in Paragraph 6.2( c ), this
indemnity shall apply to Lessee's  occupancy of the Premises  commencing October
1, 1992.

Paragraph 7.1 (a) (Continued) Lessee's Obligations

The following items shall be not be the responsibility of the Lessee hereunder:

1. Depreciation,  interest and principal  payments on mortgages,  and other debt
costs, if any; 

2.  Expenses  directly  resulting  from the  negligence  of Lessor,  its agents,
servants or employees;

3. Legal fees, space planners' fees, real estate brokers'  leasing  commissions,
and advertising expenses incurred in connection with the original development or
original leasing of the Building;

4. Costs for which Lessor is reimbursed by its insurance  carrier (to the extent
that Lessee is not  responsible  for such  insured  loss) or Lessee's  insurance
carrier;

5. Any bad debt loss, rent loss, or reserves for bad debts or rent loss suffered
by Lessor relative to other tenants in the Building;

6. The expense of extraordinary  services provided  exclusively to other tenants
in the Building;  7. The wages of any employee who does not devote substantially
all of his or her time to the Building; 8. Fines,  penalties and interest to the
extent that they do not result due to Lessee's actions or negligence; Page 2

9. Amounts paid as ground rental by Lessor;

10. Costs, including permit, license and inspection costs, incurred with respect
to the  installation  of tenant  improvements  made for new tenants  (other than
Lessee) in the  Building or  incurred  in  renovating  or  otherwise  improving,
decorating, painting or redecorating vacant space for tenants or other occupants
of the  Building.  This does not  include any costs  associated  with the Common
Areas;

11.  Expenses  in  connection  with  services  or other  benefits  which are not
provided  to Lessee  or for  which  Lessee  is  charged  directly  but which are
provided to another tenant or occupant of the Building.
<PAGE>

12. Lessee shall not be  responsible  for the  replacement  of the heating,  air
conditioning and ventilation  system.  However,  Lessee shall be responsible for
the cost of a maintenance  contract as provided under  paragraph 7.1 (b) as well
as any repairs as specified in paragraph 7.1 (a).

13. Lessee shall not be responsible  for the  replacement of the roof.  However,
Lessee shall be responsible  for roof  maintenance and repair costs subject to a
$5,000 annual maximum in any calendar year.

Paragraph 11 (Continued) Utilities

A 3,749  square  foot  portion  of the  approximately  38,948  square  feet that
comprise the Premises is serviced by separate water/sewer and electricity meters
that also service  other space in the Building.  Accordingly,  Lessor and Lessee
agree  that for  proration  purposes,  the  Lessee's  share  shall be 11.71% for
water/sewer  and  electricity as it applies to this 3,749 square foot portion of
the Premises. Gas is not provided to this 3,749 square foot portion.
Therefore, Lessee will not be separately charged its prorata share hereunder.

The remaining  35,199  square foot space has its own separate  meters for water,
gas, and electricity.


Paragraph 49 Tenant Improvement Allowance

Lessor shall  provide a retrofit  improvement  allowance of $79,436.00 to Lessee
for use in modifying the Premises.  Such  improvements  to the Premises shall be
subject to Lessor's  reasonable  prior approval as further detailed in Paragraph
7.3 of the Lease.  Such allowance paid to Lessee shall be funded based on actual
work completed and in place.

Paragraph 50 Option to Terminate Early

Provided  that Lessee is not in Default under any of the terms,  conditions,  or
covenants  of this  Lease,  Lessee  shall  have the right to cancel  this  Lease
effective  August 31, 2002 based on the Lessor receiving (1) written notice from
Lessee of its intent to cancel pursuant to this paragraph 50 at least six months
prior,  and (2) a cancellation  payment equal to the unamortized  portion of the
sum of $23,564.00 and the amount of the Page 3

Tenant Improvement Allowance provided in paragraph 49 that is actually funded by
Lessor to Lessee based on the following:
                  a.   9% discount rate;
                  b.   total amortization term of sixty months beginning 
                       September 1, 1998, and;
                  c.   early termination period of forty eight-months.

As an example, if the entire Tenant Improvement  Allowance is actually funded to
Lessee, the cancellation payment would be equal to $33,295.26.

Paragraph 51 Right of First Refusal

Beginning in the thirteenth (13th) month of the Lease and provided Lessee is not
in Default  under any of the terms,  conditions,  or  covenants  of this  Lease,
Lessor shall  notify  Lessee in writing of such lease  proposals  that Lessor is
prepared to accept on contiguous space in the Building.  Lessee shall have three
(3)  business  days after  receipt of  Lessor's  notice to accept or reject such
lease proposal in writing.
<PAGE>

Paragraph 52 Termination of Existing Leases

The  existing  leases dated  October 26, 1987 and  September  12,  1994,  by and
between High Tech No. 1, Ltd. and Advanced Photonix,  Inc. (successor to Silicon
Detector  Corporation) for the Premises shall be terminated  simultaneous to the
Commencement  Date. The existing security  deposits for each lease,  $50,000 and
$3,712 , shall be  refunded  to Lessee less the  Security  Deposit  ($23,564.00)
referenced in Paragraph 1.7 hereunder.

LESSOR:                                              LESSEE:

HIGH TECH NO. 1, LTD., A                    ADVANCED PHOTONIX, INC.,
CALIFORNIA LIMITED PARTNERSHIP              A DELAWARE CORPORATION


/s/Roderick F. Gilbert                      /s/ P. J. Holmes

By:  Roderick F. Gilbert                    By:Patrick J. Holmes
        Vice President                      Title:Executive Vice President
        TOLD Corporation
        General Partner

<PAGE>

Exhibit A  Page 1 of 2
 
Site Summary 

Picture of Site Plan

<PAGE>
Exhibit A  Page 2 of 2

Portion of 1st Floor of Bldg 1120 Avenida Acaso, Camarillo, Ca
Premises of Advanced Photonix shown in Diagonal Line Hatching //////

<PAGE>

EXHIBIT B

ADVANCED PHOTONIX INCORPORATED PROPRIETARY DOCUMENT
       **********DO NOT DUPLICATE**********
                                                           DOCUMENT NO.    PAGE
                                                           931-01-009        1

                                                        REV. NC A B C D E
    P R O C E D U R E     S P E C I F I C A T I O N
                                                        DATE:  July 22, 1988

TITLE:

      MSDS LIST



PURPOSE:
       To list all MSDS sheets on file for stock items.


DESCRIPTION:
       To define all MSDS(s) on file by vendor and current revision level and to
       define areas of use for those associated stock items.


                                R E V I S I O N S

 REV    DATE      PAGES   ECO INCORP.              DESCRIPTION            APPRV

  NC   7-22-88    All        --          New release.
  A     6-27-89   All        --          Update for current information
  B    3-16-92    ALL        --          Update
  C    2-10-94    All        --          Complete update
  D   10-31-94    All        --          Update
  E   12.21.95    All       6306       Add new MSDS; Update.



/s/R. Dowell 1-4-96    /s/R.Forrest   1-4-96           /s/R. Forrest 1-4-96
 -----------------     ---------------------------     -------------------------
 PREPARED BY  DATE     ENGINEERING            DATE     MANUFACTURING        DATE
/s/ P. Sharman 1-4-96            R. Dowell 1-4-96
 --------------------------     ----------------------------
 Q.A.                  DATE     SAFETY OFFICER          DATE


 FORM # 400-10-001                                                  MSDSLIST.Pg1
<PAGE>
                 MSDS CODED LIST FOR MANUFACTURING OPERATING SUPPLIES

Legend
A    Ashland Chemical                        KS   Kester Solder
AB   Ablestik Labs                           KTI  KTI
AH   American Hoechst Corp.
AS   Allied Signal                           L    Leeds & Northrup Inst.
AZ   AZ Photoresist                          LD   Lord Chemical Products
                                             LO   Loctite

B    J.T. Baker                              M    3M
BTI  Big Three Industries                    MA   Mallinckrodt
BS   Brewer Science                          MC   Morton Coatings
                                             MG   M.G. Industries
                                             MI   Microse, Inc.
C    Carborundum                             MK   Markem Corp
CE   Cerac                                   MR   Materials Research
CG   Ciba-Geigy                              MU   Multicore Solders, Inc.
CH   Chempure                                MWS  MWS Wire Industries
CL   Colonial
CP   Chem-Pac                                NP   Norland Products
CRT  Courtaulds                              NSS  National Sanitary Supply

D    Devcon                                  OH   Olin Hunt Specialties
DU   DuPont Electronics                      OI   Owens Illinois
DX   Dexter Electronics                      OL   Olin
DY   Dymax Corp.                             O    Oakite

EC   Emerson & Cuming Inc.                   P    Pfizer
EL   Electro-Lite Corp                       PO   Polaroid
EM   EM Science                              PRC  Products Reserach & Chemical
EP   Eppley Labs                             PT   Products Techniques Inc.
ESP  ESP Solder Plus                         PX   Polytronix
ESPI Eslectronic Space Products Int.
ET   Epoxy Technology                        SCH  Schumacher
                                             SL   Summers Lab
F    Film Microelectronic                    SLI  Sta-Lube Inc.
FMC  FMC Corp.
                                             T    Testor Corp.
G    Gast Mfg. Corp.                         TR   Transene Co.
GE   G.E. Silicones
                                             VW   Van Waters & Rogers
HS   Humiseal
                                             WD   WD40 Co.
ICA  Indium Corp of America                  WRG  WR Grace & Co.
IM   Insulating Materials
IV   Inland Vacuum Industries



                      LOCATION CODES
  WF  Wafer Fabrication                  SR    Stockroom
ASSY  Commercial Assembly               MNT    Maintenance
 MIL  Military Assembly                  SO    Safety Officer
 APD  APD Research/Assembly
<PAGE>

1.0    REAGENTS         (201-XX-XXX) SERIES

1.1    Acids  (201-10-XXX)

INVENTORY NO.      LOCATION         DESCRIPTION                         MSDS

201-10-001         SR, APD, MNT,    Blue Indicating Gel               WRG 1/1/90
                   MIL, SO,ASSY,
                   WF

201-10-010         SR, APD, MNT,    Nitric Acid, MOS Grade            B 11/3/95
                   SO, ASSY, MIL,
                   WF

201-10-020         SR, APD, MIL,    Sulphuric Acid, MOS Grade         B 9/9/86
                   MNT, SO, ASSY,
                   WF

201-10-030         SR, APD, MIL,    Hydrofluoric Acid, MOS Grade      B 5/1/89
                   MNT, SO, ASSY,
                   WF

201-10-031         SR, APD, MIL,    6-1 Buffered Hydrofluoric         B 5/1/89
                   MNT, SO, ASSY,   Etchant, MOS Grade
                   WF

201-10-040         SR, APD, MIL,    Hydrochloric Acid, MOS Grade      B 5/1/89
                   MNT, SO, ASSY,
                   WF

201-10-050         SR, APD, MIL,    Phosphoric Acid, MOS Grade        B  5/1/89
                   MNT, SO, ASSY
                   WF

201-10-060         SR, APD, MIL,    Acetic Acid, CMOS Grade           B  3-9-92
                   MNT, SO, ASSY,
                   WF

201-10-070         SR, APD, MNT,   Fluoboric Acid                     B 1/15/94
                   SO, ASSY, MIL,
                   WF


1.2    Basic Reagents  (201-20-XXX)

201-20-001       SR, APD, MIL,      Ammonium Hydroxide, MOS Grade     B  9/7/89
                 MNT, SO, ASSY,                                       MA 4/6/89
                 WF

201-20-002       SR, APD, MIL,      Ceric Sulphate
                 MNT, SO, ASSY,
                 WF

<PAGE>

201-20-004       SR, APD, MIL,      Potassium Hydroxide               EM 1/14/91
                 MNT, SO, ASSY,
                 WF

201-20-005         SR, APD, MNT,    Potassium Nitrate                 JM 2/19/91
                   SO, ASSY, MIL,
                   WF

1.3  Oxidizing Reagents  (201-30-XXX)

201-30-001         SR, APD, MNT,    Hydrogen Peroxide,                OH 5/26/87
                   SO, ASSY, MIL,   MOS grade                         B  5/1/89
                   WF

201-30-002         SR, APD, MNT,    Hydrogen Peroxide,                B 3/9/92
                   SO, ASSY, MIL,   3-3.5%
                   WF

201-40-001         SR, APD, MNT,    Team Acid Neutralizer             B  1/16/94
                   SO, ASSY, MIL,
                   WF

201-40-002         SR, APD, MNT,    Solusorb-solvent Absorbant        B  4/9/94
                   SO, ASSY, MIL,
                   WF

201-40-003         SR, APD, MNT,    Bucaim Caustic Neutralizer        B  1/16/94
                   SO, ASSY, MIL,
                   WF

2.0    ORGANIC LIQUIDS      (202-XX-XXX) SERIES

2.1    Organic Solvents  (202-10-XXX)

INVENTORY NO.      LOCATION         DESCRIPTION                        MSDS

202-10-001         SR, APD, MIL,    Acetone, MOS Grade                B 9/6/89
                   ASSY, MNT, SO
                   WF

202-10-002         SR, APD, MIL,    N-Methyl-2-Pyrrolidone            OH 1/9/91
                   SO, ASSY, MNT,
                   WF


202-10-010         SR, APD, MIL,    Methyl Alcohol, MOS Grade         B  5/1/89
                   MNT, SO, ASSY,   (Methanol)
                   WF
<PAGE>

202-10-011         SR, APD, ASSY,   Isopropyl Alcohol                 B  4/10/90
                   MIL, MNT, SO
                   WF

202-10-012         SR, ASSY, MIL    Ethyl Alcohol (Ethanol)          B  10/24/85
                   MNT, SO, APD,
                   WF

202-10-013         SR, APD, MNT,    Ethylene Glycol                   B  3/3/95
                   SO, ASSY, MIL,
                   WF

202-10-014         SR, APD, MIL,    Chlorobenzene
                   MNT, ASSY, SO,
                   WF

202-10-016         SR, ASSY, MIL    Monoethanolamine                  B 3/9/92
                   MNT, SO, APD,
                   WF

202-10-017         SR, APD, MIL,    Trichloroethane E200D in
                   MNT, SO, ASSY,   Bubbler
                   WF

202-10-020         SR, APD, MIL,    Trichloroethane                   SCH 2/85
                   ASSY, MNT, SO,
                   WF

202-10-022         SR, ASSY, MIL    2-Butoxyethanol                   B 3/17/92
                   MNT, SO, APD,
                   WF

202-10-028         SR, ASSY, APD,   Genesolv 2004                     AS 3/93
                   MIL, MNT, SO
                   WF

202-10-031         SR, SO, ASSY,    Electronic Liquid FC-40,          M  5/31/93
                   MIL, MNT, APD,   Fluorinert
                   WF

202-10-032         SR, ASSY, APD,   Flux, Mildly Activated (RMA)      KS  1/1/92
                   MIL, MNT, SO
                   WF

202-10-033         SR, ASSY, APD,   Electronic Liquid FC-77,         M  11/19/92
                   MIL, MNT, SO     Fluorinert
                   WF

<PAGE>


202-10-034         SR, ASSY, APD,   Electronic Liquid FC-6046        M  11/27/91
                   MIL, MNT, SO     Fluorinert
                   WF

202-10-035         SR, ASSY, APD,   Electronic Liquid FC-70           M  7/14/93
                   MIL, MNT, SO     Fluorinert
                   WF

202-10-036         SR, APD, MNT,    SPI-129 Polymide Silicone         M  6/14/93
                   SO, ASSY, MIL,   Solution
                   WF

2.2    Photoresist, Developer and Strippers  (202-20-XXX)

202-20-002         SR, WF, ASSY,    AZ 1350-SF J Photoresist          HC 1/20/95
                   MNT, SO, APD,
                   MIL

202-20-003         SR, WF, MIL,     PTX 207 Opaque Coating            PX  9/85
                   MNT, SO, APD,
                   ASSY

202-20-004         SR, WF, MIL,     Microstrip                        OL  1/1/93
                   MNT, SO, APD,
                   ASSY

202-20-012         SR, WF, MIL,     Resin Solution Red                BS 6/88
                   MNT, SO, APD,
                   ASSY

202-20-013         SR, WF, MIL,     Resin Solution Red                BS 7/89
                   MNT, SO, APD,
                   ASSY

202-20-015         SR, WF, MIL,     Poly (amin acid) Resin            BS 3/88
                   MNT, SO, APD,
                   ASSY

202-20-017         SR, WF, MIL,     Clear Polyimide  PI 2570         DU  1/12/93
                   MNT, SO, APD,
                   ASSY

202-20-022         SR, WF, MIL,     AZ Adhesion Promotor              AH 1/10/89
                   MNT, SO, APD,
                   ASSY

202-20-030         SR, WF, MIL,     MF 312 Developer                  AH 3/4/91
                   MNT, SO, APD,
                   ASSY

202-20-031         SR, WF, APD,     Photoresist Stripper PRS-1000     B  4/22/92
                   MNT, SO, MIL,                                      AH 7/17/89
                   ASSY

<PAGE>

202-20-032         SR, APD, MNT,    Polyimide Siloxane Copolymer      MI 6/14/93
                   SO, ASSY, MIL,
                   WF

202-20-033         SR, APD, MNT,    AZ 300T Photoresist Stripper     HC  5/15/95
                   SO, ASSY, MIL,
                   WF

202-20-034         SR, APD, MNT,    SPI-1000H Silicone Polymide       M  8/9/90
                   SO, ASSY, MIL,   Solution
                   WF

202-20-035         SR, APD, MNT,    AZ Developer                      HC 7/14/94
                   SO, ASSY, MIL,
                   WF

202-20-036         SR, APD, MNT,    AZ 4620 Photoresist               HC 2/13/95
                   SO, ASSY, MIL,
                   WF

2.3    Marking Ink and Solvents  (202-30-XXX)

202-30-001         SR, ASSY, APD,   Markem Ink, Black 7133           MK 1/22/939
                   MIL, MNT, SO
                   WF

202-30-002         SR, ASSY, APD,   Markem Ink, White 7224           MK 12/15/92
                   MIL, MNT, SO
                   WF

202-30-003         SR, ASSY, APD,   Markem Ink, Black 7254           MK 12/27/91
                   MIL, MNT, SO
                   WF

202-30-004         SR, ASSY, APD,   Markem Ink, White 7132            MK 7/10/90
                   MNT, SO, MIL,
                   WF

202-30-005         SR, APD, MNT,    AZ 1518 Photoresist               HC 5/22/95
                   SO, ASSY, MIL,
                   WF

202-30-006         SR, ASSY, MIL,   Markem Ink, White 7254           MK 12/27/91
                   MNT, SO, APD,
                   WF

202-30-010         SR, ASSY, APD,   Markem Solvent, Cleaner 320       MK 7/20/90
                   MIL, MNT, SO
                   WF

202-30-020         SR, ASSY, APD,   Auto probe Ink, Red 611-C         MK 5/15/91
                   MNT, MIL, SO,
                   WF
<PAGE>


202-30-021         SR, ASSY, APD,   Aqueous Ink Black                 L 5/72
                   MNT, MIL, SO,
                   WF

202-30-022         SR, ASSY, APD    Aqueous Ink Black                 L 5/72
                   MNT, MIL, SO,
                   WF

202-30-023         SR, MIL, ASSY,   Auto Probe Ink, Thinner
                   MNT, SO, APD,
                   WF

202-30-030         SR, MIL, ASSY,   Matte Black Epoxy Ink             DX 9/19/91
                   MNT, SO, APD,    (Wornow 50-700R)
                   WF

202-30-031         SR, MIL, ASSY,   Matte White Epoxy Ink             DX 6/10/92
                   MNT, SO, APD,    (Wornow 50-100R)
                   WF

202-30-032         SR, APD, MNT,    50-100 R Hysol Epoxy              D  5/23/94
                   SO, ASSY, MIL,
                   WF

202-30-033         SR, ASSY, MIL    AD 2003 Thinner for Wornow Inks   DX 1/23/90
                   MNT, SO, APD,
                   WF

202-30-034         SR, MIL, ASSY,   Purple Marking Ink                DX  2-7-94
                   MNT, SO, APD,
                   WF

202-30-035         SR, ASSY, MIL    Catalyst 9 (used with Hysol       DX 6/10/92
                   MNT, SO, APD,    Cat-L-Inks)
                   WF

202-30-036         SR, ASSY, MIL    Hysol M-9-N (XX0018)              DX 7/28/93
                   MNT, SO, APD,
                   WF

202-30-037         SR, APD, MNT,    Hysol MG18-5112 Lt. red Epoxy     D 11/11/95
                   SO, ASSY, MIL,   Resin Compound
                   WF

###-##-####        SR, ASSY, MIL,   Brushing Enamel, Gloss,
                   MNT, SO, APD,    Assorted Colors
                   WF

2.4    Metal Etches  (202-40-XXX)

202-40-001         SR, APD, ASSY,   Gold Film Etchant                 CP 5/12/89
                   MNT, SO, MIL,
                   WF
<PAGE>


202-40-002         SR, ASSY, MIL,   Chrome Etch #51-01                A  6-8-92
                   MNT, SO, APD,                                      TR 6/8/92
                   WF

2.5    Dopants, Solid  (202-50-XXX)

INVENTORY NO.      LOCATION         DESCRIPTION                        MSDS

202-50-001         SR, ASSY, MIL,   Boron Plus Source  2-"           OI 9/6/85
                   SO, MNT, APD,
                   WF

202-50-002         SR, ASSY, MIL,   Phosphorous Plus Source  2-"     C  4/7/89
                   MNT, SO, APD,
                   WF

202-50-003         SR, ASSY, MIL,   Boron Plus Source  3"             C 1/27/89
                   SO, MNT, APD,
                   WF

202-50-004         SR, ASSY, MIL,   Phosphorous Plus Source  3"       C  4/7/89
                   MNT, SO, APD,
                   WF

202-50-005         SR, ASSY, MIL,   Boron Plus Source  4"             C 1/27/89
                   SO, MNT, APD,
                   WF

202-50-006         SR, ASSY, MIL,   Phosphorous Plus Source  4"       C  4/7/89
                   MNT, SO, APD,
                   WF

202-50-007         SR, APD, MNT,    Phosphorus Oxychloride            T  8/8/87
                   SO, ASSY, MIL,
                   WF

202-50-008         SR, APD, MNT,    PH-950 Phosphorus Planar          C  5/5/95
                   SO, ASSY, MIL,   Diffusion Source
                   WF

202-50-009         SR, APD, MNT,    Boron Plus GS-139                  T  3/5/94
                   SO, ASSY, MIL,
                   WF

2.6    Miscellaneous Operating Supplies   (202-60-XXX)

202-60-002         SR, ASSY, MIL,   Flocon, anti-scalant             FMC 12/7/92
                   SO, MNT, APD,
                   WF

202-60-003         SR, ASSY, MIL,   ARC Cleaner                       BS  3/86
                   MNT, SO, APD,
                   WF

<PAGE>

202-60-004         SR, ASSY, MIL,   APX-1                             BS  3/86
                   MNT, SO, APD,
                   WF

202-606-005        SR, ASSY, MIL,   Safestrip                         BS 1/91
                   MNT, SO, APD,
                   WF

202-60-010         SR, ASSY, MIL,   Humiseal, Acrylic Conformal      HS  12/8/92
                   MNT, SO, APD,    Coating Aerosol (1B15 H, 1B73)
                   WF

202-60-012         SR, ASSY, MIL    Ecostrip 93 Epoxy Remover         EC  3/8/93
                   MNT, SO, APD,
                   WF


3.0   GASES          (203-XX-XXX) SERIES

3.1   Nitrogen  (203-10-XXX)

INVENTORY NO.      LOCATION         DESCRIPTION                        MSDS

203-10-001         SR, ASSY, MIL,   Bulk Liquid Nitrogen            BTI  8/24/89
                   APD, MNT, SO
                   WF

203-10-002         SR, MIL, ASSY,   Nitrogen 95%/Hydrogen 5%         BTI 10/1/85
                   MNT, SO, APD,    Standard Grade
                   WF

203-10-003         SR, ASSY, MIL,   Nitrogen, UHP Grade              BTI 10/1/85
                   MNT, SO, APD,
                   WF

3.2    Oxygen  (203-20-XXX)

203-20-002         SR, ASSY, MIL,   Oxygen, UHP Grade                BTI  4/1/84
                   MNT, SO, APD,
                   WF

203-20-003         SR, ASSY, MIL,   Oxygen, Commercial Grade         BTI  4/1/84
                   MNT, SO, APD,
                   WF

3.3    Doping Gases  (203-30-XXX)


3.4    Other Miscellaneous Gases  (203-40-XXX)

203-40-002         SR, ASSY, MIL,   Hydrogen, Ultra High Purity      MG 11/25/85
                   MNT, SO, APD,
                   WF

<PAGE>

203-40-003         SR, ASSY, MIL,   Helium                           BTI 8/23/89
                   MIL, MNT, SO
                   WF

203-40-004         SR, ASSY, MIL,   Liquid Carbon Dioxide             BTI 4/1/84
                   MNT, SO, APD,
                   WF

203-40-005         SR, ASSY, MIL,   Argon, UHP                        BTI 4/1/84
                   MNT, SO, APD,
                   WF

4.0    ADHESIVES AND POTTING MATERIALS  (204-XX-XXX) SERIES

4.1    Non-Conductive Epoxy Pastes  (204-10-XXX)

INVENTORY NO.      LOCATION         DESCRIPTION                        MSDS

204-10-003         SR, ASSY, MIL,   Devcon 5-min. Epoxy,            D 1/7/88 (A)
                   SO, MNT, APD,    2-part kit                        2/7/89 (B)
                   

204-10-004         SR, ASSY, MIL,   Ablebond 84-3 G.T.L.T.C.          AB  1/8/88
                   MNT, SO, APD,
                   WF

204-10-005         SR, ASSY, MIL, Epon 828 Epoxy Resin w/Versamid AB 3/2/88 MNT,
                   SO, APD, 125 Hardener, 3 cc syringes WF

204-10-006         SR, ASSY, MIL,   HIPEC R6101                       DC 1/24/89
                   MNT, SO, APD,
                   WF

204-10-007         SR, ASSY, MIL,   Ablebond 240-2                   AB  12/1/89
                   MNT, SO, APD,
                   WF

204-10-008         SR, ASSY, MIL,   Ablebond 342-3.5
                   MNT, SO, APD,
                   WF

204-10-012         SR, ASSY, MIL,   Ablebond 74-1 Epoxy,              AB 6/12/86
                   MNT, APD, SO,    3 cc syringe
                   WF

204-10-017         SR, ASSY, MIL    Loctite 00206                     LO  1/1/93
                   MNT, SO, APD,
                   WF

204-10-018         SR, ASSY, MIL,   Norland 61                       NP  9/29/88
                   MNT, SO, APD,
                   WF

<PAGE>

204-10-019         SR, ASSY, MIL,   Summers Labs M62 Optically        SL  5/8/92
                   MNT, SO, APD,    Clear Cement, 4 oz. Kit
                   WF

204-10-020         SR, ASSY, MIL,   ELC 4481 UV Curing Adhesive       EL 5/22/86
                   MNT, SO, APD,
                   WF

204-10-021         SR, ASSY, MIL    Summers Lab UV-74                 SL  5/8/92
                   MNT, SO, APD,
                   WF

204-10-022         SR, ASSY, MIL,   Summers Labs F-65 Lens Bond       SL  5/8/92
                   MNT, SO, APD,    Optically Clear Cement,
                   WF

204-10-023         SR, ASSY, APD,   3M 2216 Epoxy, Gray,              M  4/18/92
                   MIL, MNT, SO     2-part kit (was ###-##-####)
                   WF

204-10-024         SR, ASSY, MIL,   3M 2216 Epoxy, Transparent        M  8/7/92
                   MNT, SO, APD,    2-part kit
                   WF

204-10-025         SR, ASSY, MIL,   Epo-Tek 730, Unfilled             ET 7/15/91
                   MNT, SO, APD,
                   WF

204-10-026         SR, ASSY, APD,   Epo-Tek H54 Epoxy             ET 3/24/89 (A)
                   MIL, MNT, SO                                      3/13/90 (B)
                   WF

204-10-028         SR, ASSY, MIL,   Epo-Tek H-70E Epoxy               ET 5/24/91
                   MNT, SO, APD,
                   WF

204-10-030         SR, ASSY, APD,   Epo-Tek H77                       ET 3/27/89
                   MIL, MNT, SO
                   WF

204-10-033         SR, ASSY, MIL,   Epo-Tek 320-4                     ET 7/6/89
                   MNT, SO, APD,
                   WF

204-10-034         SR, ASSY, MIL,   Eccobond 45                       EC 5/25/93
                   MNT, SO, APD,
                   WF

204-10-036         SR, ASSY, MIL,   Epo-Tek 920                      ET  4/20/89
                   MTN, SO, APD,
                   WF

204-10-037         SR, ASSY, MIL,   Norland 123                       NP 10/4/91
                   MNT, SO, APD,
                   WF
<PAGE>

204-10-038         SR, ASSY, MIL    Ablebond 342-3 Black              AB 4/9/90
                   MNT, SO, APD,
                   WF

204-10-039         SR, ASSY, MIL,   Epo-Tek 301                       ET 2/26/93
                   MNT, SO, APD,
                   WF

204-10-040         SR, ASSY, MIL,   Epo-Tek 301-2                    ET  3/27/89
                   MNT, SO, APD,
                   WF

204-10-041         SR, MIL, ASSY,   Ablebond 862-7                    AB 9/15/89
                   MNT, SO, APD,
                   WF

204-10-042         SR, MIL, ASSY    Ablebond 872-3                    AB  6/7/87
                   MNT, SO, APD,
                   WF

204-10-043         SR, ASSY, MIL,   Norland 68, optically clear       NP 10/4/91
                   MNT, SO, APD,    adhesive, 1 lb. bottle
                   WF

204-10-044         SR, ASSY, APD,   Ablebond 789-3                    AB 2/4/88
                   MIL, MNT, SO
                   WF

204-10-048         SR, MIL, ASSY,   Loctite 290 adhesive sealant      LO  1/1/93
                   MNT, SO, APD,    250 ml bottle
                   WF

204-10-049         SR, ASSY, MIL,   Epo-Tek H77-S                    ET 10/31/90
                   MNT, SO, APD,
                   WF

204-10-051         SR, ASSY, MIL,   Ablebond 724-5 (CFM)              AB  5/2/89
                   MNT, SO, APD,
                   WF

204-10-052         SR, ASSY, MIL,   Takpak 444                        LO  3/1/92
                   MNT, SO, APD,
                   APD

204-10-053         SR, ASSY, MIL,   Accelerator 710                   LO  3/1/92
                   MNT, SO, APD,
                   WF

204-10-054         SR, APD, MNT,    Ablebond 84-3 GTLTC               A  8/12/94
                   SO, ASSY, MIL,
                   WF
<PAGE>



204-10-055         SR, APD, MNT,    Powerbond 922                     N  4/9/94
                   SO, ASSY, MIL,
                   WF


4.2    Non-Conductive Epoxy Preforms  (204-20-XXX)

204-20-001      SR, APD, MNT, SO,   Ablefilm 539IA
                ASSY, MIL, WF

204-20-003      SR, APD, MNT, SO,   Ablefilm 566, 9.50 X .250         AB  1/8/88
                ASSY, MIL, WF       (was 204-20-13580-2)

204-20-004      SR, APD, MNT, SO,   Ablefilm 550                      AB 8/18/93
                ASSY, MIL, WF

204-20-005      SR, APD, MNT, SO,   Ablefilm 568                     A  12/3/93
                ASSY, MIL, WF

204-20-006      SR, APD, MNT, SO,   Ablefilm 550 2x6x.003             AB 8/18/93
                ASSY, MIL, WF

204-20-007      SR, APD, MNT, SO,   Ablefilm 5020                     AB 8/13/93
                ASSY, MIL, WF

204-20-008      SR, APD, MNT, SO,   High Temp Flexible Mask TC-533
                ASSY, MIL, WF

204-20-009      SR, APD, MNT, SO,   Ablebond 9070D                    AM 1/30/92
                ASSY, MIL, WF

###-##-####     SR, APD, MNT, SO,   Ablefilm 561-1-.003
                ASSY, MIL, WF


4.3    Conductive Epoxy Paste  (204-30-XXX)

204-30-006      SR, APD, MNT, SO,   H-20E Silver-filled Epoxy         ET 3/15/90
                ASSY, MIL, WF       2-part Kit

204-30-007      SR, APD, MNT, SO,   E-Solder 3022/Hardener #18        IM 7/19/93
                ASSY, MIL, WF

204-30-008      SR, APD, MNT, SO,   84-1LMIT Electrically conductive AB  3/13/91
                ASSY, MIL, WF       adhesive

204-30-009      SR, APD, MNT, SO,   Epo-Tek H-31                     ET  2/25/91
                ASSY, MIL, WF

204-30-010      SR, APD, MNT, SO,   Ablebond 967-3                    A  5/18/90
                MIL, ASSY, WF

204-30-011      SR, APD, MNT, SO,   Hysol MG18-5124                   D  7/1/94
                MIL, ASSY, WF
<PAGE>

204-30-012      SR, APD, MNT, SO,   85-1 Conductive Adehesive         A  7/22/93
                MIL, ASSY, WF

204-30-013      SR, APD, MNT, SO,   Epoxy Resin                       D  5/1/92
                 MIL, ASSY, WF


4.5   Potting Compounds (204-50-XXX)

204-50-002      SR, APD, MNT, SO,   Dow Corning R-6100 Semiconductor DC  3/16/88
                ASSY, MIL, WF       Junction Coating, 2 part

204-50-004      SR, APD, MNT, SO,   Proseal 799 Potting Compound      PRC 6/5/86
                ASSY, MIL, WF       Black, Type I, CLass A

204-50-006      SR, APD, MNT, SO,   Chemglaze Z306 Black Flex        LD  3/11/93
                ASSY, MIL, WF

204-50-008      SR, APD, MNT, SO,   PR 1422B/2 Sealing Compound     CRT 10/25/93
                ASSY, MIL, WF       2 part

204-50-009      SR, APD, MNT, SO,   Dow Corning 93-500               DC 11/11/92
                ASSY, MIL, WF

204-50-010      SR, APD, MNT, SO,   Dow Corning 732 RTV              DC 11/11/92
                ASSY, MIL, WF

204-50-012      SR, APD, MNT, SO,   G.E. 630 RTV                     GE  1/22/92
                ASSY, MIL, WF

204-50-013      SR, APD, MNT, SO,   G.E. 566 Red RTV                 GE  1/14/92
                ASSY, MIL, WF

204-50-014      SR, APD, MNT, SO,   G.E. Primer SS4155                GE  9/2/93
                ASSY, MIL, WF

204-50-015      SR, APD, MNT, SO,   Epocast 87491-A-117/87491-B      CG  1/16/90
                ASSY, MIL, WF

204-50-016      SR, APD, MNT, SO,   Clear Rubber Conformal Coating
                ASSYM, MIL, WF      3140

204-50-021      SR, APD, MNT, SO,   Silicone Rubber Mixture           GE 10/5/93
                MIL, ASSY, WF


4.6    Paints  (204-60-XXX)

204-60-001      SR, APD, MNT, SO,   PT 401D Resin Coating, 2 part     PT 10/90
                ASSY, MIL, WF       w/H11 Catalyst

204-60-003      SR, APD, MNT, SO,   Eppley Parsons Black Lacquer     M  11/21/90
                ASSY, MIL, WF       Topcoat and Thinner

<PAGE>

204-60-004      SR, APD, MNT, SO,   PT 1002 Thinner                   PT 11/2/93
                ASSY, MIL, WF

204-60-005      SR, APD, MNT, SO,   Testors Paint (red, white,        T  6/24/87
 thru 010       ASSY, MIL, WF       blue, green, brown, black)


4.7    Primers  (204-61-XXX)

204-61-001      SR, APD, MNT, SO,   Resin Coating Primer, 2 part,  PT  1/85  (A)
                ASSY, MIL, WF       PT 402  with H-15 Catalyst         10/86 (B)

204-61-002      SR, APD, MNT, SO,   5301-6001 Polyamine Rust-oleum    R 10/25/93
                MIL, ASSY, WF

204-61-003      SR, APD, MNT, SO,   Thinner #1045 for use with        PT  11/85
                ASSY, MIL, WF       PT 402 Primer


5.0    METALS         (205-XX-XXX) SERIES

5.1    Wire  (205-10-XXX)

205-10-011      SR, APD, MNT, SO,   Titanium Wire Slugs               ESPI  1/90
                ASSY, MIL, WF

205-10-013      SR, APD, MNT, SO,   Silver Wire Slugs                 MR 8/7/91
                ASSY, MIL, WF

205-10-021      SR, APD, MNT, SO,   Silicon Monoxide Granules        CE  2/11/92
                ASSY, MIL, WF

205-10-022      SR, APD, MNT, SO,   Sn63 Bar Solder
                ASSY, MIL, WF

205-10-024      SR, APD, MNT, SO,   Solder, Sn63, Tin-Lead-           KS  6/1/92
                ASSY, MIL, WF       Antimony, 63/36/.35,
                                    0.020" dia., #58 Core,
                                    WRMAP, Mildly Activated Flux

205-10-025      SR, APD, MNT, SO,   Solder, Sn62, Tin-Lead-           KS  6/1/92
                ASSY, MIL, WF       Antimony-Silver, 62/35/.35/2,
                                    0.020" dia., #58 Core, WRMAP
                                    Mildly Activated Flux

205-10-026      SR, APD, MNT, SO,   Solder, Sn60, Tin-Lead-           KS  6/1/92
                ASSY, MIL, WF       Antimony, 60/40/.35, 0.020"
                                    dia., #58 Core, WRMAP, Mildly
                                 Activated Flux

205-10-027      SR, APD, MNT, SO,   Solder, Sn96, Tin-Silver, 96/4    KS  1/1/92
                ASSY, MIL, WF       0.020" dia., #58 Core, WRMAP
                                    Mildly Activated Flux

<PAGE>

205-10-031      SR, APD, MNT, SO,   60/40 Tin-Lead Solder Ribbon
                ASSY, MIL, WF

205-10-032      SR, APD, MNT, SO,   Solder, Bar, Sn96
                ASSY, MIL, WF

205-10-033      SR, APD, MNT, SO,   Kovar Ribbon                      MWS  12/85
                ASSY, MIL, WF

205-10-034      SR, APD, MNT, SO,   Nickel Ribbon                     MWS 12/85
                ASSY, MIL, WF

205-10-035      SR, APD, MNT, SO,   Gold Ribbon
                ASSY, MIL, WF

205-10-042      SR, APD, MNT, SO,   Copper wire (gold plated)
                ASSY, MIL, WF

205-30-001      SR, APD, MNT, SP,   Solder Cream, Sn62                KS 5/29/86
                ASSY, MIL, WF


205-30-002      SR, APD, MNT, SO,   Solder Cream, Sn96               ESP  1/7/91
                ASSY, MIL, WF

205-40-001      SR, APD, MNT, SO,   Solder Preform
                ASSY, MIL, WF

205-40-002      SR, APD, MNT, SO,   Solder Preform, Indalloy #7      ICA 8/18/86
                ASSY, MIL, WF

205-40-003      SR, APD, MNT, SO,   Copper Powder                     A  1/15/95
                MIL, ASSY, WF

205-40-004      SR, APD, MNT, SO,   PD1001 Aluminum Oxide             C  6/93
                MIL, ASSY, WF

205-40-005      SR, APD, MNT, SO,   57 Alundum El                     N  6/15/90
                MIL, ASSY, WF

205-40-006      SR, APD, MNT, SO,   Gold/Beryllium                    W  11/91
                MIL, ASSY, WF

205-40-007      SR, APD, MNT, SO,   Gold/Silicon                      W  7/91
                MIL, ASSY, WF

205-40-008      SR, APD, MNT, SO,   Platinum wire                     A  3/30/95
                MIL, ASSY, WF

205-40-009      SR, APD, MNT, SO,   Mercury                           D  10/95
                MIL, ASSY, WF

205-40-010      SR, APD, MNT, SO,   Metal Elements                   W  11/15/93
                MIL, ASSY, WF
<PAGE>

205-40-011      SR, APD, MNT, SO,   Regular Stopyt Liquid             W  5/8/92
                MIL, ASSY, WF


205-40-012      SR, APD, MNT, SO,   Chromium Trioxide                 M 10/11/95
                MIL, ASSY, WF

205-40-013      SR, APD, MNT, SO,   Aluminum Powder                  M  10/11/95
                MIL, ASSY, WF


6.0    MISCELLANEOUS CHEMICALS    (206-XX-XXX) SERIES

206-10-001     SR, APD, MNT, SO,    Lemon Go-Jo Cleaner               G  12/4/90
               MIL, ASSY, WF

206-10-003     SR, APD, MNT, SO,    Quick Freeze
                ASSY, MIL, WF

206-10-004      SR, APD, MNT, SO,   Oakite 33                         OK  1/2/90
                ASSY, MIL, WF


10.0  GENERAL OPERATING SUPPLIES  (210-XX-XXX) SERIES

10.8  Lubricants  (210-70-XXX)

210-70-001      SR, APD, MNT, SO,   Vacuum grease, Krytox LVP
                ASSY, MIL, WF

210-70-002      SR, APD, MNT, SO,   Dow Corning #704 Diffusion        DC 9/25/85
                ASSY, MIL, WF       Pump Fluid

210-70-003      SR, APD, MNT, SO,   Mech. Pump Oil, High Vac          IV 5/31/76
                ASSY, MIL, WF

210-70-005      SR, APD, MNT, SO,   Gast Pump Flushing Solvent        G  4/26/90
                ASSY, MIL, WF

210-70-006      SR, APD, MNT, SO,   Non-Detergent 10W Oil           SLI 12/10/87
                ASSY, MIL, WF       Rotary Vane

210-70-007      SR, APD, MNT, SO,   Dow Corning, High Vacuum Grease
                ASSY, MIL, WF

210-70-008      SR, APD, MNT, SO,   Octoil, Diffusion Pump Oil
                ASSY, MIL, WF

210-70-009      SR, APD, MNT, SO,   Nondetergent SAE 50W Oil
                ASSY, MIL, WF       (for Air Compressor)

210-70-010     SR, APD, MNT, SO,    Busch R-530 Oil                  B  11/8/94
               MIL, ASSY, WF

<PAGE>

10.10  Camera Film

210-90-001      SR, APD, MNT, SO,   Polaroid Film, Black/White        PO 2/10/86
                ASSY, MIL, WF


11.0   JANITORIAL SUPPLIES

300-10-001      SR, APD, MNT, SO,   Polisher, Lemon Shine, Aerosol    NSS 11/85
                ASSY, MIL, WF

300-10-007      SR, APD, MNT, SO,   "Wind-O-Clean" Window Spray
                ASSY, MIL, WF       Cleaner                         NSS 11/25/85

300-10-010      SR, APD, MNT, SO,   Toilet Bowl Cleaner, Rim        NSS 11/25/85
                ASSY, MIL, WF

300-10-011      SR, APD, MNT, SO,   Surface Disinfectant, D-Fen       NSS 11/85
                ASSY, MIL, WF

300-10-012      SR, APD, MNT, SO,   Stainless Steel Cleaner/Polish    NSS 11/85
                ASSY, MIL, WF

300-20-001      SR, APD, MNT, SO,   Carpet Cleaner, Spot Remover     NSS 11/8/89
                ASSY, MIL, WF

300-20-006      SR, APD, MNT, SO,   Floor Wax Stripper              NSS 11/25/85
                ASSY, MIL, WF

300-20-007      SR, APD, MNT, SO,   Time mist                         N  8-3-93
                MIL, ASSY, WF

300-20-008      SR, APD, MNT, SO,   Gentle scrub                      N  1-5-93
                MIL, ASSY, WF

300-20-009      SR, APD, MNT, SO,   Super shine                       N  10-2-92
                MIL, ASSY, WF

300-20-011      SR, APD, MNT, SO,   Bleach                            N  9-19-94
                MIL, ASSY, WF

300-20-012      SR, APD, MNT, SO,   Windex                            N  2-24-92
                MIL, ASSY, WF

300-20-013      SR, APD, MNT, SO,   Degreaser                         N 11-30-89
                MIL, ASSY, WF

300-20-014      SR, APD, MNT, SO,   Good sense freshner               N  10-5-92
                MIL, ASSY, WF

12.0  MISCELLANEOUS MSDS  (NO STOCK NUMBER)

400-000-001     SR, APD, MNT, SO,   Nalco 2360 silica                 N  10-95
                MIL, ASSY, WF


<PAGE>