LEASE EXTENSION AGREEMENT

         THIS  AGREEMENT  MADE AND ENTERED INTO AS OF THE 3RD DAY OF JULY BY AND
BETWEEN SEAFO, INC., A DELAWARE CORPORATION ("LANDLORD") AND NATIONAL SECURITIES
CORPORATION, A WASHINGTON CORPORATION ("Tenant").

                                   WITNESSETH

A.   Landlord or its  predecessor in interest,  and tenant or its predecessor in
     interest, have heretofore entered into that certain lease dated January 31,
     1989,  for Premises  (the  "Premises")  as described as suite(s) or room(s)
     2200, initially containing approximately 23,391 square feet in the building
     (the "Property") known as 1001 Fourth avenue plaza,  located at 1001 Fourth
     avenue,  Seattle,  Washington 98154 which lease has heretofore been amended
     or assigned by instruments dated;  February 23, 1994, February 28, 1996 and
     August 16, 1996 (collectively, the "Lease").


*NOTE:  The parties  herby  acknowledge  and agree that the rentable area of the
premises  is 25,250  square  feet,  6,937 RSF  located  on the 21st,  16,421 RSF
located on the 22nd floor 1,892 RSF located on the 30TH floor,  and the rentable
area of the Property is 677,949 square feet.

B.   THE LEASE BY ITS TERMS  SHALL  EXPIRE ON JUNE 30, 1999  ("Prior  Expiration
     Date") and the  parties  desire to extend  the Lease,  all on the terms and
     conditions hereinafter set forth.

     NOW THEREFORE,  in consideration of the mutual terms and conditions  herein
contained,   and  other  good  and  valuable  consideration,   the  receipt  and
sufficiency  of which is hereby  acknowledged,  the  parties do hereby  agree as
follows:

     1.  EXTENSION.  The  term of the  lease is herby  extended  from the  prior
expiration  date so as to expire on June 30, 2004,  (which extended period shall
be referred to herein as the "Extended Term" and which extended  expiration date
shall be referred to herein as the "Extended  Expiration  Date"),  unless sooner
terminated in accordance with its terms.

     2. BASE OR MINIMUM  RENT.  All erms and  conditions  contained in the lease
shall  continue  to apply with full force and  effect  during the  aformentioned
extended  term,  except  as  amended  herin and  except  that the base or minium
monthly rent shall be increased to the monthly ammount of $62,073.00.


     3.  RENT  ADJUSTMENT.  It is  understood  and  agreed  that any  terms  and
provisions in the Lease concerning rent  adjustments  shall remain in full force
and effect, including without limitation any provisions relating to increases or
escalations  based on increases in any  consumer or  wholesale  price index,  or
similar index ("CPI"), real estate taxes, utility or other charges, or operating
expenses, except that:

     (A)  The base year or stop level for operating expenses shall be 1999 .
          ------------------------------------------------------------

     (B)  The base year or stop level for real estate taxes shall be 1999 .
          --------------------------------------------------------------------

     (C)  The base date for CPI increases shall be N/A .

     Under no  circumstances  shall  Tenant be entitled to any free rent period,
construction  allowance,  tenant improvements or other work to the Premises,  or
any other such  economic  incentives  that may have been  provided  to Tenant in
connection with entering the Lease.

     4. CANCELLATION OPTION. Tenant shall have the one time right to cancel this
Lease,  effective December 31, 2001, by sending Landlord at least six (6) months
advance  written  notice  accompanied  by a certified or cashier's  check in the
amount of $372,438.00.

     5.  NONRECOURSE  TO  LANDLORD.  Any  alleged  liability  of  Landlord or of
Landlord's   trustees,   beneficiaries,   shareholders,   officers,   directors,
employees,   agents,   advisors,  or  consultants   (collectively  the  "Alleged
Responsible  Parties")  to Tenant or to Tenant's  partners,  employees,  agents,
guests or  invitees or to any other  person or entity  claiming  by,  through or
under Tenant  (collectively  the  "Claimants")  on account of any alleged  loss,
harm,  claim or demand,  including  without  limitation  any of such  related to
attorneys' fees, court costs or to claims or demands of  indemnification,  which
is related to, arises out of, or is in connection  with this Lease or any of its
Riders,  Agreements,  Exhibits or other addenda (the "Claims"), shall be limited
to the  interest of Landlord in the Building  and the rental  proceeds  thereof.
Claimants  agree to look solely to Landlord's  interest and the rental  proceeds
thereof for the recovery or  satisfaction of any judgment  obtained  against the
Alleged  Responsible  Parties and the Alleged  Responsible  Parties shall not be
personally  liable  on such  judgment  and  Claimants  shall  have  no  recourse
personally  against any of them. The limitations of liability  contained in this
paragraph  shall apply  equally to all present  and future  Alleged  Responsible
Parties and to its and their heirs,  successors,  transferees and assigns. Under
no   circumstances,   including  without   limitation   circumstances  of  gross
negligence,  willful misconduct,  fraud or any other act or omission to act will
any Alleged Responsible Parties be personally liable to Claimants for Claims.

     6.  INSURANCE,  SUBROGATION,  AND WAIVER OF CLAIMS.  Tenant shall  maintain
during  the Term  comprehensive  (or  commercial)  general  liability  insurance
including  premises  operations,  products/completed  operations and contractual
liability coverage with limits of not less than $3,000,000 combined single limit
for personal  injury,  bodily injury or death, or property damage or destruction
(including  loss of use  thereof)  for any one  occurrence.  Tenant  shall  also
maintain during the Term worker  compensation/Employers  liability  insurance as
required by statute,  and primary,  noncontributory,  "all-risk" property damage
insurance covering Tenant's improvements,  personal property,  business records,
fixtures  and  equipment,  for  damage  or other  loss  caused  by fire or other
casualty  or cause  including,  but not  limited  to,  vandalism  and  malicious
mischief, theft, water damage of any type, including sprinkler leakage, bursting
or stoppage of pipes, explosion, business interruption, Boiler and machinery and
other  insurable  risks in amounts not less than the full insurable  replacement
value of such property and full insurable value of such other interest of Tenant
(subject to $1,000.00 maximum deductible).  Landlord shall, as part of Operating
Expenses,  maintain  during  the  Term  comprehensive  (or  commercial)  general
liability  insurance,  with limits of not less than  $1,000,000  combined single
limit  for  personal  injury,  bodily  injury or death,  or  property  damage or
destruction  (including  loss of use thereof) for any one  occurrence.  Landlord
shall  also,  as part of  Operating  Expenses,  maintain  during the Term worker
compensation  insurance as required by statute,  and primary,  non-contributory,
extended coverage or "all-risk" property damage insurance, in an amount equal to
at least ninety  percent (90%) of the full  insurable  replacement  value of the
Property  (exclusive of the costs of excavation,  foundations and footings,  and
such  risks  required  to be  covered  by  Tenant's  insurance,  and  subject to
reasonable  deductible  amounts),  or such  other  amount  necessary  to prevent
Landlord from being a co-insured, and such other coverage as Landlord shall deem
appropriate or that may be required by any Holder (as defined in Article 25).

Tenant shall provide Landlord with  certificates  evidencing such coverage (and,
with respect to liability coverage,  showing Landlord, Jones Lang Wootton Realty
Advisors and property manager as additional  insureds) prior to the Commencement
Date,  which  shall  state that such  insurance  coverage  may not be changed or
canceled  without at least thirty (30) days' prior  written  notice to Landlord,
and shall  provide  renewal  certificates  to Landlord at least thirty (30) days
prior to expiration of such policies.  Landlord may  periodically,  but not more
often than  every five  years,  require  that  Tenant  reasonably  increase  the
aforementioned  coverage.  Except  as  provided  to  the  contrary  herein,  any
insurance  carried by  Landlord or Tenant  shall be for the sole  benefit of the
party carrying such insurance.  Any insurance policies hereunder may be "blanket
policies".  All insurance  required  hereunder  shall be provided by responsible
insurers and Tenant's  insurer  shall be  reasonably  acceptable to Landlord and
have a minimum  Best's  rating of A-V.I.  By this  Article,  Landlord and Tenant
intend that their  respective  property loss risks shall be borne by responsible
insurance carriers to the extent above provided,  and Landlord and Tenant hereby
agree to look solely to, and seek recovery only from, their respective insurance
carriers  in the event of a property  loss to the extent  that such  coverage is
agreed to be provided  hereunder.  The parties  each hereby waive all rights and
claims  against each other for such losses,  and waive all rights of subrogation
of their  respective  insurers,  provided such waiver of  subrogation  shall not
affect the right of the insured to recover  thereunder.  The parties  agree that
their  respective  insurance  policies are now, or shall be,  endorsed such that
said waiver of subrogation  shall not affect the right of the insured to recover
thereunder,  so long as no  material  additional  premium is  charged  therefor.
Furthermore,  if Tenant hires a contractor or  subcontractor  said  contractors'
general  liability  insurance  will name  Landlord,  Jones Lang  Wootton  Realty
Advisors and property manager as additional insureds.

     7. PARKING  AGREEMENT.  See attached Parking Agreement for additional Lease
provisions.

     8. Extension Fee: Landlord will provide to National Securities Corporation,
at its sole expense an extension fee equal to $44,187.50,  to be paid upon lease
execution.

     9.  NONDISCLOSURE.  We are submitting this Lease Extension Agreement on the
condition  that  Tenant not  discuss  any of the  matters set forth in the Lease
Extension and Amendment  Agreement or disseminate or distribute any  information
concerning the terms, details or conditions hereof to any person, firm or entity
without obtaining the express written approval of Landlord.

     10. WHOLE AGREEMENT. This Agreement sets forth the entire agreement between
the parties  with  respect to the matters set forth  herein.  There have been no
additional  oral or written  representations  or  agreements.  As  extended  and
amended  herein,  the Lease  between the parties  shall remain in full force and
effect.  In case of any  inconsistency  between the  provisions of the Lease and
this  Agreement,  the  latter  provisions  shall  govern and  control.  Under no
circumstances  shall  this  Agreement  be deemed to grant any right to Tenant to
further  extend the Lease,  and any options to extend or renew  contained in the
Lease are hereby deleted.

     11. NO OFFER.  This  Agreement  shall not be  binding  until  executed  and
delivered by both parties.

Note:  The  following  are  attached  hereto  and made a part of this  Extension
Agreement dated July 3, 1999: Parking Agreement and Storage Agreement.

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

                              LANDLORD:         SEAFO, INC.

                                                a Delaware corporation

                                                BY:

                                                ITS:

                              TENANT:           NATIONAL SECURITIES CORPORATION

                                                a Washington corporation

                                                BY:

                                                ITS:


<PAGE>


                                                      LANDLORD ACKNOWLEDGMENT

STATE OF NEW YORK                           }
                                    }ss.:

COUNTY OF KINGS                             }

         I   certify   that  I  know  or   have   satisfactory   evidence   that
         __________________________________  is the person who  appeared  before
         me, and said person  acknowledged that (he/she) signed this instrument,
         on oath stated that (he/she) was  authorized to execute the  instrument
         and  acknowledged it as the  _______________________________  of Seafo,
         Inc.  to be the free and  voluntary  act of such party for the uses and
         purposes mentioned in the instrument. Dated: ____________________

                                   -----------------------------------------
                               Notary Public in and for the State of New York

(seal or stamp)

Name Printed:                                       __________________________

My commission expires:                              ___________________

                                                       TENANT ACKNOWLEDGMENTS

                                                             INDIVIDUAL

STATE OF:                           }
                                    }  ss.:

COUNTY OF:                                  }

         I, the  undersigned,  as Notary  Public in and for the County and State
         aforesaid,   do  hereby  certify  that   _____________________________,
         personally  known to me to be the same person whose name is  subscribed
         to the foregoing instrument,  appeared before me this day in person and
         acknowledged  that (he/she)  signed the said instrument as his/her free
         and voluntary act, for the uses and purposes  therein set forth.  GIVEN
         under my hand and  official  seal this  _____ day of  ________________,
         19____.

                                      -----------------------------------------
                                                      Notary Public

Name Printed:                                 __________________________

My commission expires:                        ___________________

                                                            CORPORATION

STATE OF:                           }
                                    }  ss.:

COUNTY OF:                                  }

          On this the ______ day of _______________,  19____, before me a Notary
          Public  duly  authorized  in and  for the  said  County  in the  State
          aforesaid    to    take     acknowledgments     personally    appeared
          ______________________________________   known   to  me   to  be   the
          __________________________                                          of
          ___________________________________________,  one of the  corporations
          described in the foregoing  instrument,  and acknowledged that as such
          officer,  being  authorized  so to do (he/she)  executed the foregoing
          instrument on behalf of said  corporation by  subscribing  the name of
          such corporation by himself/herself  as such officer,  as his/her free
          and  voluntary  act,  and as  the  free  and  voluntary  act  of  said
          corporation,  for the uses and purposes  therein set forth. IN WITNESS
          WHEREOF,    I   hereunto    set   my   hand   and    official    seal.
          ----------------------------------------- Notary Public

Name Printed:                                       __________________________

My commission expires:                              ___________________