Document:

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                                                                   EXHIBIT 10.20

                              EMPLOYMENT AGREEMENT

            EMPLOYMENT AGREEMENT (the "Agreement"), dated as of October 21,
1999, by and between TMP WORLDWIDE INC., a Delaware corporation (the "Company"),
and Steven B. Potter ("Executive").

                              PRELIMINARY RECITALS

            A.    Reference is made to that certain Amended and Restated
Purchase Agreement dated as of October 20, 1999 (the "Purchase Agreement"), by
and among the Company, Highland Search Group L.L.C. ("Highland"), and the
holders of membership interests in Highland set forth on SCHEDULE A attached
thereto.

            B.    Highland has been engaged in the executive search business
(the "Business").

            C.    Executive has been a long time executive of Highland, most
recently serving as Highland's Chief Executive Officer and has extensive
knowledge and a unique understanding of the Business and has longstanding
business relationships with many customers of Highland, who, subsequent to the
consummation of the transactions contemplated by the Purchase Agreement, will be
transacting business with the Company.

            D.    From and after the date hereof, the Company desires to employ
Executive, and Executive desires to be employed by the Company, as
President-North American Executive Search Operations of the Company, all under
the terms and conditions set forth herein.

            E.    Immediately prior to the closing of the transactions
contemplated by the Purchase Agreement, Executive owns 29% of the outstanding
membership interests of Highland and is consequently directly benefitting from
the transactions contemplated by the Purchase Agreement. It is a condition to
the consummation of the Purchase Agreement that the Company and Executive enter
into this Agreement and that Executive agree to the Restrictive Covenants (as
defined in SECTION 6 below).

      NOW, THEREFORE, in consideration of the mutual covenants set forth in
this Agreement and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

            1.    EMPLOYMENT.

                  1.1 ENGAGEMENT OF EXECUTIVE. The Company agrees to employ
Executive and Executive agrees to accept employment as President-North American
Executive Search Operations of the Company and its successor or successors in
interest (which successor or successors may be a

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separate corporation or corporations or become a division or unit of the
Company), in accordance with the terms and conditions of this Agreement.

                  1.2 DUTIES AND POWERS. During the Employment Period (as
defined in SECTION 1.3 below), Executive will serve in the position described in
SECTION 1.1 above and will have such responsibilities, duties and authorities,
and will render such services of an executive and administrative character as
shall be reasonably directed by the President of the Global Executive Search
Division of the Company (currently Michael Squires), the Company's Executive
Vice President-Mid-Market (currently Andrew Banks) or the Company's Chief
Executive Officer (currently Andrew McKelvey) (each, a "Senior Executive" and,
collectively, the "Senior Executives"). Executive shall devote Executive's best
efforts, energies and abilities and Executive's full business time, skill and
attention to the business and affairs of the Company. Executive shall perform
the duties and carry out the responsibilities assigned to Executive to the best
of Executive's ability, in a diligent, trustworthy, businesslike and efficient
manner for the purpose of advancing the business of the Company and shall adhere
to any and all of the written employment policies of the Company. Executive
acknowledges that Executive's duties and responsibilities will require
Executive's full-time business efforts and agrees that during the Employment
Period Executive will not engage in any other business activity or have any
business pursuits or interests which interfere or conflict with the performance
of Executive's duties hereunder, provided, that nothing in this SECTION 1.2
shall be deemed to prohibit Executive from making Permitted Investments (as
defined in SECTION 3.2 below).

                  1.3 EMPLOYMENT PERIOD. Executive's employment under this
Agreement shall begin on the date hereof and shall continue through and until
October 21, 2001 (the "Employment Period"). Notwithstanding anything herein to
the contrary, the Employment Period is subject to termination pursuant to
SECTIONS 1.4, 1.5 AND 1.6 below.

                  1.4 TERMINATION BY THE COMPANY. The Company has the right to
terminate the Employment Period (and, consequently, Executive's employment under
this Agreement), by notice to Executive in writing at any time, (i) for "Cause"
or (ii) without Cause for any or no reason, subject to the provisions of SECTION
2.2. Any such termination shall be effective upon the date specified in such
notice or, if no date is specified, on the date such notice is deemed served
pursuant to SECTION 8.6 below.

                  "Cause" as used herein means the occurrence of any of the
following events:

                  (a) the willful failure or gross negligence of Executive to
      perform or in performing Executive's duties or to comply with reasonable
      directions of a Senior Executive that continues unremedied for a period of
      ten (10) days after such Senior Executive has given written notice to
      Executive specifying in reasonable detail the manner in which Executive
      has failed to perform such duties or comply with such directions;

                  (b) Executive's conviction of (i) a felony, (ii) criminal
      dishonesty, (iii) any crime involving moral turpitude or (iv) fraud;

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                  (c) a breach by Executive of any of the Restrictive Covenants;
      or

                  (d) a material breach by Executive of any of the terms or
      conditions of this Agreement (other than the Restrictive Covenants),
      PROVIDED, that if such breach is capable of being remedied, it continues
      unremedied for a period of ten (10) business days after a Senior Executive
      has given written notice to Executive specifying in reasonable detail the
      manner in which Executive has breached the Agreement.

                  1.5 TERMINATION BY EXECUTIVE. Executive has the right to
terminate the Employment Period (and, consequently, Executive's employment under
this Agreement) (i) by sixty (60) days prior written notice to the Company for
any or no reason (a "Voluntary Termination") or (ii) for "Good Reason."
Notwithstanding anything to the contrary contained herein, the Company may
accelerate the effective date of a Voluntary Termination to any date including,
but not limited to, the date on which notice is received by the Company.
Following a notice of Voluntary Termination, Executive agrees to fulfill
Executive's duties hereunder and shall cooperate fully in completion and
turnover of all matters involving Executive until such termination becomes
effective, unless otherwise consented to by the Company.

                  "Good Reason" as defined herein shall mean the existence
      (without Executive's express written consent) of any of the following
      events which are not cured by the Company within 15 days after written
      notice thereof (setting forth Executive's specific claims hereunder) is
      given to the Company by Executive:

                         (a) any material diminution in Executive's position,
      authority, duties, title or responsibilities described herein;

                         (b) the Company's reduction of Executive's Annual Draw,
      Cash Bonus or Equity Bonus (each as defined in SECTION 2.1 below) or as
      the same may be increased from time to time hereafter;

                         (c) the Company's failure to pay to Executive any
      material portion of his current compensation or to pay to Executive any
      portion of an installment of deferred compensation under any deferred
      compensation program of the Company, within seven (7) days of the date
      such compensation is due; or

                         (e) any other material breach of this Agreement by the
      Company.

      Executive's continued employment shall not constitute consent to, or a
      waiver of rights with respect to, any event constituting Good Reason
      hereunder.

                  1.6 AUTOMATIC TERMINATION. The Employment Period shall
automatically terminate upon Executive's death or Disability. Executive shall be
deemed to have a "Disability" for

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purposes of this Agreement if Executive is unable to perform, by reason of
physical or mental incapacity, Executive's duties or obligations under this
Agreement, for a total period of 100 days in any 360-day period. The Board of
Directors of the Company (the "Board") shall determine, according to the facts
then available, whether and when the Disability of Executive has occurred. Such
determination shall be made by the Board in the exercise of reasonable
discretion.

                  1.7 CORPORATE OFFICES. The Company shall not relocate its
offices where Executive is employed more than 30 miles from its current location
(I.E., 1633 Broadway, New York, New York 10019).

            2.    COMPENSATION AND BENEFITS.

                  2.1 CASH COMPENSATION

                  (a) ANNUAL DRAW. In consideration of Executive performing
      Executive's duties under this Agreement and complying with the Restrictive
      Covenants set forth herein, during the Employment Period and subject to
      SECTION 2.2 BELOW, the Company will pay Executive an aggregate annual draw
      of $400,000 (the "Annual Draw"), payable in accor dance with the Company's
      regular payroll policy for salaried employees. If the Employment Period is
      terminated pursuant to SECTION 1.4, SECTION 1.5 or SECTION 1.6 above, then
      the Annual Draw for any partial year of the Employment Period will be
      prorated based on the number of days elapsed in such year during which
      services were actually performed by Executive.

                  (b) BONUS ELIGIBILITY. Executive shall be eligible for an
      annual discretionary bonus based on fee revenue conversion, the
      performance of the Company's North American executive search operations
      and other criteria mutually determined by Executive and the Company, which
      bonus shall be payable annually within 90 days after the end of the
      Company's fiscal year. Notwithstanding the foregoing, during the
      Employment Period and subject to SECTION 2.2 BELOW, Executive shall
      receive (i) a cash bonus of $1,000,000 per annum (the "Cash Bonus"),
      payable semi-annually, and (ii) an additional bonus of $600,000 per annum
      (the "Equity Bonus"), payable annually. The minimum Equity Bonus shall be
      paid in either cash, TMP Common Stock (as defined below), options to
      purchase TMP Common Stock or any combination thereof, at the sole
      discretion of the Board of Directors of the Company (the "Board"). Any
      shares or options granted as part of the Equity Bonus shall be subject to
      (x) a four-year vesting requirement (I.E., vesting in four equal annual
      installments commencing on the first anniversary of the date of grant),
      (y) Executive's continued employment during such vesting period and (z)
      the terms of the then current form of option agreement applicable to
      executive search employees, a current version of which has been previously
      provided to Executive. In addition, any options constituting the Equity
      Bonus shall be non-incentive stock options and will be valued in the same
      manner that options are valued for other similarly situated executives of
      the Company. The exercise price per share of such options shall be equal
      to the fair market value of one share of TMP Common Stock on the date of
      grant.

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      As used herein, "TMP Common Stock" means shares of common stock, $.001 par
      value per share, of the Company.

                  (c) Notwithstanding anything to the contrary contained herein,
      Executive acknowledges and agrees that the Company may, at its option and
      in its sole discretion, refuse to conduct any business with, or perform
      any particular services for, any client or potential client of Executive
      for credit reasons, blocking requirements or other reasonable business
      purposes.

                  2.2 COMPENSATION AFTER TERMINATION.

                  (a) If the Employment Period or this Agreement is terminated
      (i) by the Company for Cause, (ii) by Executive pursuant to a Voluntary
      Termination, (iii) through expiration of the Employment Period, or (iv) by
      virtue of Employee's death or Disability, then the Company shall have no
      further obligations hereunder or otherwise (except as agreed to in
      writing) with respect to Executive's employment from and after the
      applicable termination or expiration date (except payment of Executive's
      Annual Draw and provision of benefits described in SECTION 2.3 hereof, in
      each case which have accrued through the date of termination or
      expiration, and any Cash Bonus or Equity Bonus that was actually payable
      but not paid prior to the effective date of termination), and the Company
      shall continue to have all other rights available hereunder (including,
      without limitation, all rights under SECTIONS 3 AND 4 at law or in
      equity).

                  (b) If the Employment Period is terminated by the Company
      without Cause pursuant to clause (ii) of the first sentence of SECTION 1.4
      hereof or by Executive with Good Reason pursuant to clause (ii) of the
      first sentence of SECTION 1.5 hereof, then, subject to Executive's
      compliance with the Restrictive Covenants, as Executive's sole and
      exclusive remedy, Executive shall be entitled to receive (i) as severance
      pay the Annual Draw and the Cash Bonus hereunder for the period of time
      which would have been remaining in the Employment Period had it not been
      so terminated, payable in regular installments in accordance with the
      Company's general payroll practices for salaried employees (or, in the
      case of the Cash Bonus, in accordance with the terms set forth in SECTION
      2.1(B) above), and (ii) provision of benefits described in SECTION 2.3
      hereof which have accrued through the date of such termination. In the
      event the Employment Period is terminated by the Company without Cause
      pursuant to clause (ii) of the first sentence of SECTION 1.4 hereof or by
      Executive with Good Reason pursuant to clause (ii) of the first sentence
      of SECTION 1.5 hereof, then the Company shall have no further obligations
      hereunder or otherwise (except as agreed to in writing) with respect to
      Executive's employment from and after the termination date except and only
      to the extent set forth in the immediately preceding sentence.

                  2.3 OTHER BENEFITS.

                  (a) VACATION AND INSURANCE. During the Employment Period, the
      Company will provide Executive four (4) weeks vacation per year (prorated
      for periods of less than a full

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      year), and Executive will be eligible to participate in any life, health,
      hospitalization, disability, 401(k), profit sharing, retirement, or other
      fringe benefit program maintained by the Company for its executive
      employees generally, in each case in accordance with the terms of such
      policies, plans or programs.

                  (b) BUSINESS EXPENSES. During the Employment Period, the
      Company will reimburse Executive in accordance with Company policy for
      Executive's normal out-of- pocket expenses incurred in the course of
      performing Executive's duties hereunder. Executive shall provide the
      Company with all receipts and documentation supporting such expenses as
      may reasonably be requested by the Company.

                  (c) POST-TERMINATION BENEFITS. Following termination of
      Executive by the Company without Cause or by Executive for Good Reason,
      for the shorter of one year after the date of such termination or the
      period of time which would have been remaining in the Employment Period
      had it not been so terminated, the Company shall make available to
      Executive and his immediate family medical, dental, basic life, accidental
      death and dismemberment, long-term disability, unreimbursed medical
      expense, dependent day-care and AFLAC benefits, if any, to the same extent
      and on the same terms and conditions as would have been made available to
      Executive and his immediate family had he remained employed by the Company
      or one of its affiliates during such period, except that Executive will
      not be permitted to make any changes in coverage during any such period
      except for the addition of new immediate family members and changes in
      beneficiaries which are effected by Executive pursuant to the terms and
      conditions of the applicable benefit program.

                  2.4 TAXES, ETC. All compensation payable to Executive
hereunder is stated in gross amount and shall be subject to all applicable
withholding taxes, other normal payroll deductions and any other amounts
required by law to be withheld.

            3.    COVENANT NOT TO COMPETE.

                  3.1 EXECUTIVE'S ACKNOWLEDGMENT. Executive agrees and
acknowledges that in order to assure the Company and the Company's affiliates
(as defined in SECTION 3.2 below) that they will retain their respective value
and that of the Business, it is necessary that Executive undertake not to
utilize the special knowledge of the Business Executive has or may acquire and
Executive's relationships with customers to compete with the Company and its
affiliates. Executive further acknowledges that:

                  (a) upon consummation of the transactions contemplated by the
      Purchase Agreement, the Company and its affiliates will be engaged in the
      Business;

                  (b) Executive is one of a limited number of persons who helped
      develop the Business of Highland;

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                  (c) Executive has occupied a position of trust and confidence
      with Highland prior to the date of this Agreement and, during such period
      and Executive's employment under this Agreement, Executive has and will
      continue to become familiar with the proprietary and confidential
      information of Highland, the Company and the Company's other affiliates;

                  (d) the agreements and covenants contained in this SECTION 3
      are essential to protect the Company, its affiliates and the goodwill of
      the Business and are a condition precedent to the willingness of the
      Company to consummate the transactions contemplated by the Purchase
      Agreement;

                  (e) the Company and its affiliates would be irreparably
      damaged if Executive were to provide services to any person or entity in
      violation of the provisions of this Agreement; and

                  (f) the scope and duration of the Restrictive Covenants are
      reasonably designed to protect a protectable interest of the Company and
      its affiliates and are not excessive in light of the circumstances.

                  3.2 NON-COMPETE. Executive hereby agrees that during the
Employment Period and for a period beginning on the date hereof and ending on
the date which is the later of two years after the date hereof or six months
after Executive ceases to be employed by the Company or its affiliates for any
reason, except on behalf of the Company and its affiliates in accordance with
this Agreement, Executive shall not, directly or indirectly, as employee, agent,
consultant, stockholder, director, partner or in any other individual or
representative capacity, own, operate, manage, control, engage in, invest in or
participate in any manner in, act as a consultant or advisor to, render services
for (alone or in association with any person, firm, corporation or entity), or
otherwise assist any person or entity that engages in or owns, invests in,
operates, manages or controls any venture or enterprise that directly or
indirectly engages or proposes to engage in the Business anywhere in or into the
United States or the United Kingdom (the "Territory"); provided, however, that
nothing contained herein shall be construed to prevent Executive from owning,
directly or indirectly, not more than an aggregate of one percent (1%) of any
class of stock of any company which is listed on a national securities exchange
or traded in the over-the-counter market ("Permitted Investments"). As used in
this Agreement, the term "affiliate" shall have the meaning ascribed to that
term in Rule 405 of the Securities Act of 1933, as amended, and shall include
each past and present affiliate of such person or entity.

                  3.3 NON-SOLICITATION. Without limiting the generality of the
provisions of SECTION 3.2 above, Executive hereby agrees that for a period
beginning on the date hereof and ending on the date which is the later of four
years after the date hereof or two years after the date Executive ceases to be
employed by the Company or its affiliates for any reason, except on behalf of
the Company and its affiliates in accordance with this Agreement, Executive will
not, directly or indirectly, as employee, agent, consultant, principal or
otherwise, (i) solicit any Business from, provide any services related to the
Business

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to, in any way transact or seek to transact any Business with or otherwise seek
to influence or alter the relationship between the Company or any of its
affiliates with any person or entity both (x) to whom Highland, the Company or
any of their respective affiliates provided services at any time during the one
year period preceding the date Executive ceases to be employed the Company or
its affiliates, or to whom Highland, the Company or any of their respective
affiliates made a presentation at any time during the six month period preceding
such date, and (y) with whom Executive or any employee or consultant reporting
to Executive has or had any involvement or interaction while an employee of
Highland, the Company or any of their respective affiliates, including, without
limitation, in the context of marketing, recruiting, client development or
provision of services, or (ii) employ or solicit for employment or other
services or otherwise seek to influence or alter the relationship between
Highland, the Company or any of their respective affiliates with any person who
is or was an employee of Highland, the Company or any of their respective
affiliates at any time during the one year period preceding the date Executive
ceases to be employed by the Company or its affiliates.

                  3.4 BLUE-PENCIL. If any court of competent jurisdiction shall
at any time deem the term of this Agreement or any particular Restrictive
Covenant too lengthy or the Territory too extensive, the other provisions of
this SECTION 3 shall nevertheless stand, the period of restriction shall be
deemed to be the longest period permissible by law under the circumstances and
the Territory shall be deemed to comprise the largest territory permissible by
law under the circumstances. The court in each case shall reduce the period of
restriction and/or Territory to permissible duration or size.

            4.    CONFIDENTIAL INFORMATION. During the term of this Agreement
and thereafter, Executive shall keep secret and retain in strictest confidence,
and shall not, without the prior written consent of the Board or any Senior
Executive, furnish, make available or disclose to any third party or use for the
benefit of Executive or any third party (other than in accordance with his
employment with the Company or its affiliates hereunder), any Confidential
Information. As used in this SECTION 4, "Confidential Information" shall mean
any trade secret, proprietary or confidential information relating to the
business or affairs of the Company or the Company's affiliates, including but
not limited to information relating to financial statements, customer
identities, potential customers, employees, suppliers, servicing methods,
equipment, programs, strategies and information, analyses, profit margins,
computer, software, hardware and related information; provided, however, that
Confidential Information shall not include any information which is in the
public domain or becomes known in the industry through no wrongful act on the
part of Executive. Executive acknowledges that the Confidential Information is
vital, sensitive, confidential and proprietary to the Company and/or its
affiliates.

            5.    EFFECT ON TERMINATION. If this Agreement or the Employment
Period expires or is terminated for any reason, then, notwithstanding such
termination, those provisions contained in SECTIONS 2.2(B), 3, 4, 5 AND 6 hereof
shall remain in full force and effect.

            6.    REMEDIES. Executive acknowledges and agrees that the covenants
set forth in SECTIONS 3 AND 4 of this Agreement (collectively, the "Restrictive
Covenants") are reasonable and

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necessary for the protection of the business interests of the Company and its
affiliates, that irreparable injury will result to the Company and its
affiliates if Executive breaches any of the terms of the Restrictive Covenants,
and that in the event of Executive's actual or threatened breach of any such
Restrictive Covenants, the Company and its affiliates will have no adequate
remedy at law. Executive accordingly agrees that in the event of any actual or
threatened breach by Executive of any of the Restrictive Covenants, the Company
and its affiliates shall be entitled to injunctive relief, specific performance
and other equitable relief, without the necessity of showing actual monetary
damages, subject to hearing as soon thereafter as possible. Nothing contained
herein shall be construed as prohibiting the Company and its affiliates from
pursuing any other remedies available to them for such breach or threatened
breach, including but not limited to the recovery of damages.

            7.    REPRESENTATIONS OF EXECUTIVE. Executive represents and
warrants that Executive is free to enter into this Agreement and to perform the
duties required under this Agreement, and that there are no employment or
consulting contracts, restrictive covenants or other restrictions preventing the
performance of Executive's duties hereunder.

            8.    MISCELLANEOUS.

                  8.1 ASSIGNMENT; REMEDIES. Neither this Agreement nor any of
the rights, interests or obligations hereunder may be assigned or delegated by
Executive in any manner whatsoever, whether directly or by operation of law or
otherwise. It is understood that the rights and remedies of the parties under
this Agreement, including but not limited to the rights and remedies the Company
may have upon any breach or threatened breach by Executive of the Restrictive
Covenants, shall in no way be limited by the provisions of the Purchase
Agreement, including without limitation the provisions of Article IX thereof.

                  8.2 ENTIRE AGREEMENT. Except as otherwise expressly set forth
herein, this Agreement sets forth the entire understanding of the parties, and
supersedes and preempts all prior oral or written understandings and agreements
with respect to the subject matter hereof.

                  8.3 SEVERABILITY. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited
by or invalid under applicable law, such provision shall be ineffective only to
the extent of such prohibition or invalidity, without invalidating the remainder
of this Agreement.

                  8.4 AMENDMENT; MODIFICATION. No amendment or modification of
this Agreement and no waiver by any party of the breach of any covenant
contained herein shall be binding unless executed in writing by the party
against whom enforcement of such amendment, modification or waiver is sought. No
waiver shall be deemed a continuing waiver or a waiver in respect of any
subsequent breach or default, either of a similar or different nature, unless
expressly so stated in writing.

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                  8.5 GOVERNING LAW. This Agreement shall be construed and
enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Agreement shall be governed by,
the laws of the State of New York without giving effect to provisions thereof
regarding conflict of laws.

                  8.6 NOTICES, CONSENTS, ETC. Any notice, consent or other
communication required to be sent or given hereunder by any of the parties shall
in every case be in writing and shall be deemed properly served if (a) delivered
personally, (b) delivered by registered or certified mail, in all such cases
with first class postage prepaid, return receipt requested, (c) delivered by
courier, or (d) delivered by facsimile transmission, at the addresses and/or
facsimile numbers as set forth below or at such other addresses and/or facsimile
numbers as may be furnished in writing. All such notices and communications
shall be deemed received upon the actual delivery thereof in accordance with the
foregoing, except in the case of notice given by facsimile transmission, which
shall be deemed received upon the next business day following the date of
transmission thereof by the sender and issuance by the transmitting machine of a
confirmation slip confirming that the number of pages constituting the notice
have been transmitted without error to the addressee's telecopy number. In the
case of notices sent by facsimile transmission, the sender shall within one
business day also mail a copy of the notice to the addressee's address for
notices, together with a copy of the confirmation slip; however, such mailing
shall in no way affect the time at which the facsimile notice is deemed
received.

                  (a) If to Executive:

                               95 Grumman Hill Road
                               Wilton, CT 06897
                               Telecopy:

                      with a copy to:

                               Latham & Watkins
                               885 Third Avenue, Suite 100
                               New York, NY 10022
                               Attn:    William Voge, Esq.
                                        Denise Ben-Attar, Esq.
                               Telecopy: (212) 751-4864

                  (b) If to the Company:

                               TMP Worldwide Inc.

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                               1633 Broadway, 33rd Floor
                               New York, New York  10019
                               Attention: Mr. Andrew J. McKelvey
                               Telecopy:  (212) 940-3987

                      with a copy to:

                               TMP Worldwide Inc.
                               1633 Broadway, 33rd Floor
                               New York, New York  10019
                               Attention: Myron F. Olesnyckyj, Esq.
                               Telecopy:  (212) 940-3987

                  8.7 COUNTERPARTS. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one and the same Agreement.

                  8.8 DESCRIPTIVE HEADINGS; INTERPRETATION. The descriptive
headings in this Agreement are inserted for convenience of reference only and
are not intended to be part of or to affect the meaning or interpretation of
this Agreement. The use of the word "including" in this Agreement shall be by
way of example rather than by limitation. The Preliminary Recitals set forth
above are incorporated by reference into this Agreement.

                                    * * * * *

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            IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the day and year first above written.

                               COMPANY:

                               TMP WORLDWIDE INC.

                               By: /s/ Thomas G. Collison
                                   ---------------------------------------------
                                        Name:  Thomas G. Collison
                                        Title: Vice Chairman

                               EXECUTIVE:

                                  /s/ Steven B. Potter
                               -------------------------------------------------
                                        Steven B. Potter<PAGE>

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

1.     BASIC PROVISIONS ("BASIC PROVISIONS").

       1.1     PARTIES: This Lease ("LEASE"), dated for reference purposes
only, March 21, 2000, is made by and between Bennett Center, LLC, a Delaware
Limited Liability Company ("LESSOR") and ImproveNet, Inc., a California
Corporation ("LESSEE"), (collectively the "PARTIES," or individually a
"PARTY").

       1.2(a)  PREMISES: That certain portion of the Building, including all
improvements therein or to be provided by Lessor under the terms of this
Lease, commonly known by the street address of 100 Camino Ruiz, 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): an office suite of
approximately 12,646 sq. ft. in a multi-tenant research and development
building of approximately 81,986 sq. ft. commonly known as the Bennett
Center. 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: 51 unreserved vehicle parking spaces ("UNRESERVED
PARKING SPACES"); and No reserved vehicle parking spaces ("RESERVED PARKING
SPACES"). (Also see Paragraph 2.6.)

       1.3     TERM: 5 years and 0 months ("ORIGINAL TERM") commencing May 1,
2000 ("COMMENCEMENT DATE") and ending April 30, 2005 ("EXPIRATION DATE").
(Also see Paragraph 3.)

       1.4     EARLY POSSESSION: March 1, 2000 ("EARLY POSSESSION DATE").
(Also see Paragraphs 3.2 and 3.3.)

       1.5     BASE RENT: $11,760.78 per month ("BASE RENT"), payable on the
1st day of each month commencing May 1, 2000 (Also see Paragraph 4.)

/X/  If this box is checked, this Lease provides for the Base Rent to be
     adjusted per Addendum 61, attached hereto.

       1.6(a)  BASE RENT PAID UPON EXECUTION: $11,760.78 as Base Rent for the
period May 1 - May 31, 2000.

       1.6(b)  LESSEE'S SHARE OF COMMON AREA OPERATING EXPENSES: fifteen pt.
forty-two percent (15.42%) ("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: $11,760.78 ("SECURITY DEPOSIT"). (Also see
Paragraph 5.)

       1.8     PERMITTED USE: Web-based customer service center or other
commercial uses allowed by zoning or applicable covenants. ("PERMITTED USE")
(Also see Paragraph 6.)

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

       1.10(a) REAL ESTATE BROKERS. The following real estate broker(s)
(collectively, the "BROKERS") and brokerage relationships exist in this
transaction and are consented to by the Parties (check applicable boxes):

/ / ________________________ represents Lessor exclusively ("LESSOR'S
BROKER");
/ / ________________________ represents Lessee exclusively ("LESSEE'S
BROKER"); or
/ / CB Richard Ellis, Inc. represents both Lessor and Lessee
("DUAL AGENCY"). (Also see Paragraph 15.)

       1.10(b) PAYMENT TO BROKERS. Upon the execution of this Lease by both
Parties, Lessor shall pay to said Broker(s) jointly, or in such separate
shares as they may mutually designate in writing, a fee as set forth in a
separate written agreement between Lessor and said Broker(s) for brokerage
services rendered by said Broker(s) in connection with this transaction.

       1.11    GUARANTOR. The obligations of the Lessee under this Lease are
to be guaranteed by    Not applicable    ("GUARANTOR"). (Also see Paragraph 37.)
                    --------------------

       1.12    ADDENDA AND EXHIBITS. Attached hereto is an Addendum or
Addenda consisting of Paragraphs 49 through 62, 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

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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 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 been advised by the Broker(s) to satisfy 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.

       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 nonexclusive 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 AREAS - 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, or
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 obligations
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: See Addendum.

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               (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,
elevators 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)   Trash disposal, property management and
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 overpayment 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.

5.     SECURITY DEPOSIT. Lessee shall deposit with Lessor upon Lessee's
execution hereof the Security Deposit set forth in Paragraph 1.7 as security
for Lessee's faithful performance of Lessee's obligations under this Lease.
If Lessee fails to pay Base Rent or other rent or charges due hereunder, or
otherwise Defaults under this Lease (as defined in Paragraph 13.1), Lessor
may use, apply or retain all or any portion of said Security Deposit for the
payment of any amount due Lessor or to reimburse or compensate Lessor for any
liability, cost, expense, loss or damage (including attorneys' fees) which
Lessor may suffer or incur by reason thereof. If Lessor uses or applies all
or any portion of said Security Deposit, Lessee shall within ten (10) days
after written request therefore deposit monies with Lessor sufficient to
restore said Security Deposit to the full amount required by this Lease. Any
time the Base Rent increases during the term of this Lease, Lessee shall,
upon written request from Lessor, deposit additional monies with Lessor as an
addition to the Security Deposit so that the total amount of the Security
Deposit shall at all times bear the same proportion to the then current Base
Rent as the initial Security Deposit bears to the initial Base Rent set forth
in Paragraph 1.5. Lessor shall not be required to keep all or any part of the
Security Deposit separate from its general accounts. Lessor shall, at the
expiration or earlier termination of the term hereof and after Lessee has
vacated the Premises, return to Lessee (or, at Lessor's option, to the last
assignee, if any, of Lessee's interest herein), that portion of the Security
Deposit not used or applied by Lessor. Unless otherwise expressly agreed in
writing by Lessor, no part of the Security Deposit shall be considered to be
held in trust, to bear interest or other increment for its use, or to be
prepayment for any monies to be paid by Lessee under this Lease.

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 otherwise 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, Lessee shall immediately give Lessor
written notice thereof, together with a copy of any statement, report,
notice, registration, application, permit, business plan, license, claim,
action, or proceeding given to, or received from, any governmental authority
or private party concerning the presence, spill, release, discharge of, or
exposure to, such Hazardous Substance including, but not limited to, all such
documents as may be involved in any Reportable Use involving the Premises.
Lessee shall not cause or permit any Hazardous Substance to be spilled or
released in, on, under or about the Premises (including, without limitation,
through the plumbing or sanitary sewer system).

               (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

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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, 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 Obligations), 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. See Addendum.

               (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 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 or 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,

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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 Lessor requires removal, in writing,
when the alteration is approved, Lessee shall not be required to remove
alterations. 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 required 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 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.

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       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, judgements, 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, 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

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substantial and meaningful way, the repair of 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 full force and
effect, but subject 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.

               (b)

               (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.* If the
resulting entity from such transaction(s) lacks the financial capacity,
capability and resources to support its then existing financial obligations
and commitments, including the subject Lease.

               (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

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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 $1,000 or ten percent (10%) of the
monthly Base Rent applicable to 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.

               (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.

       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 of 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, Lessee'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

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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 Lessee'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.

               (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 thirty (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

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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.

       15.1    PROCURING CAUSE. The Broker(s) named in Paragraph 1.10 is/are
the procuring cause of this Lease.

       15.2    ADDITIONAL TERMS. Unless Lessor and Broker(s) have otherwise
agreed in writing, Lessor agrees that: (a) if Lessee exercises any Option (as
defined in Paragraph 39.1) granted under this Lease or any Option
subsequently granted, or (b) if Lessee acquires any rights to the Premises or
other premises in which Lessor has an interest, or (c) if Lessee remains in
possession of the Premises with the consent of Lessor after the expiration of
the term of this Lease after having failed to exercise an Option, or (d) if
said Brokers are the procuring cause of any other lease or sale entered into
between the Parties pertaining to the Premises and/or any adjacent property
in which Lessor has an interest, or (e) if Base Rent is increased, whether by
agreement or operation of an escalation clause herein, then as to any of said
transactions, Lessor shall pay said Broker(s) a fee in accordance with the
schedule of said Broker(s) in effect at the time of the execution of this
Lease.

       15.3    ASSUMPTION OF OBLIGATIONS. Any buyer or transferee of Lessor's
interest in this Lease, whether such transfer is by agreement or by operation
of law, shall be deemed to have assumed Lessor's obligation under this
Paragraph 15. Each Broker shall be an intended third party beneficiary of the
provisions of Paragraph 1.10 and of this Paragraph 15 to the extent of its
interest in any commission arising from this Lease and may enforce that right
directly against Lessor and its successors.

       15.4    REPRESENTATIONS AND WARRANTIES. Lessee and Lessor each
represent and warrant to the other that is has had no dealings with any
person, firm, broker or finder other than as named in Paragraph 1.10(a) 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; BROKER DISCLAIMER. 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. Brokers have no responsibility with respect thereto or with respect
to any default or breach hereof by either Party. Each Broker shall be an
intended third party beneficiary of the provisions of this Paragraph 22.

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 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

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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 monies 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 one
hundred fifty percent (150%) for the first thirty (30) days and to two
hundred percent (200%) thereafter 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 (1) 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 or Broker 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 or Broker 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 or Broker 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. Broker(s) shall be intended third party
beneficiaries of this Paragraph 31.

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 with twenty-four (24) hours written notice 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 Installation, 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.

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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 acknowledgement 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.

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 extend 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 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 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

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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.

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.

<TABLE>
<S>                                                    <C>
Executed at:   Camarillo, CA                           Executed at:
           --------------------------------------                  -------------------------------------
on:  3-24-00                                           on:
   ----------------------------------------------         ----------------------------------------------

By LESSOR:                                             By LESSEE:
Bennett Center, LLC, a Delaware Limited                ImproveNet, Inc., a California Corporation
-------------------------------------------------      -------------------------------------------------
Liability Company
-------------------------------------------------      -------------------------------------------------

By:  /s/ Herman Bennett                                By: /s/ Rich Reece
   ----------------------------------------------         ----------------------------------------------
Name Printed: Herman Bennett                           Name Printed:  Rich Reece
            -------------------------------------                  -------------------------------------

Title: Manager                                         Title: Chief Financial Officer
      -------------------------------------------            -------------------------------------------

By:                                                    By:
   ----------------------------------------------         ----------------------------------------------
Name Printed:                                          Name Printed:
            -------------------------------------                  -------------------------------------
Title:                                                 Title:
      -------------------------------------------            -------------------------------------------

Address: 2784 Truman Street, Camarillo, CA             Address: 720 Bay Road, Suite 200, Redwood
        -----------------------------------------              -----------------------------------------
93010                                                  City, CA 94063
-------------------------------------------------      -------------------------------------------------
Telephone: (805)  482-2000                             Telephone: (650) 701-8000
           --------------------------------------                 --------------------------------------
Facsimile: (805)  654-6265                             Facsimile: (650)  701-8200
           --------------------------------------                 --------------------------------------

BROKER:                                                BROKER:

Executed at: Camarillo, CA                             Executed at: Camarillo, CA
           --------------------------------------                  -------------------------------------
on: 3/24/00                                            on: 3/24/00
   ----------------------------------------------         ----------------------------------------------

By: /s/ Harry F. Preston                               By: /s/ Harry F. Preston
   ----------------------------------------------         ----------------------------------------------
Name Printed: Harry F. Preston                         Name Printed: Harry F. Preston
            -------------------------------------                  -------------------------------------

Title: First Vice President                            Title: First Vice President
      -------------------------------------------            -------------------------------------------

Address: 5280 Valentine Road, Suite 105,               Address: 5280 Valentine Road, Suite 105,
        -----------------------------------------              -----------------------------------------
Venture, CA 93003                                      Venture, CA 93003
-------------------------------------------------      -------------------------------------------------
Telephone: (805)  654-6228                             Telephone: (805)  654-6228
           --------------------------------------                 --------------------------------------
Facsimile: (805)  654-6265                             Facsimile: (805)  654-6265
           --------------------------------------                 --------------------------------------
</TABLE>

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, 700 South
Flower Street, Suite 600, Los Angeles, California 90017. (213) 687-8777.

                                                                INITIALS:   R
                                                                          -----
                                                                           H.B.
MULTI-TENANT--MODIFIED NET                                                -----
-C- American Industrial Real Estate Association 1993

                                Page 13 of 14

-C- 1993 by American Industrial Real Estate Association. All rights reserved.
No part of these words may be reproduced in any form without permission in
writing.

<PAGE>

                                  BLANK PAGE

                                                                INITIALS:   R
                                                                          -----
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MULTI-TENANT--MODIFIED NET                                                -----
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                                Page 14 of 14

<PAGE>

ADDENDUM TO THAT STANDARD INDUSTRIAL COMMERCIAL MULTI-TENANT LEASE-MODIFIED
NET DATED MARCH 21, 2000 BY AND BETWEEN BENNETT CENTER, LLC, A DELAWARE
LIMITED LIABILITY COMPANY AS LESSOR AND IMPROVEMENT, INC., A CALIFORNIA
CORPORATION AS LESSEE FOR THAT PROPERTY COMMONLY KNOWN AS 100 CAMINO RUIZ,
CAMARILLO, CALIFORNIA

49. COMMON AREA OPERATING EXPENSES (PARAGRAPH 4.2 CONTINUED):
    Lessee, at its sole cost and expenses, shall be responsible for the
    removal and disposal of trash of the Premises.

50. HEATING, AIR CONDITIONING AND VENTILATION (HVAC) SYSTEMS PARAGRAPH 7.1(b)
    CONTINUED):
    Lessee, at its sole cost and expense, shall be responsible for the
    maintenance and repairs to the HVAC systems servicing the Premises.

51. SIGNAGE:
    Subject to Lessor's prior written consent as to size, color and location,
    Lessee shall have the right to place a sign on the outside of the
    Building on which the Premises is located, in accordance with all
    governmental regulations. Lessee shall be solely responsible for the cost
    of all permits, installation, maintenance and electrical usage for said
    sign. At the end of the term, or any extension thereof, Lessee shall be
    responsible for the sign's removal, and building repair required after
    the sign's removal. Prior to the sign's installation, Lessee shall
    provide Lessor with copies of all approved plans and required permits for
    said sign.

52. TENANT IMPROVEMENTS - LESSEE'S CURRENT INTENTIONS:
    Lessee's current intentions is to modify the Premises as follows:
    a) Remove the three (3) offices at the entrance to the Premises as per
       Exhibit "B"
    b) Install glass windows in remaining offices.
    c) Construct a floor to ceiling glass partition wall and double glass door
       to create a conference room as per Exhibit "B".
    d) Remove existing dropped ceiling grid and lighting and paint walls and
       HVAC ducting in exposed area.
    e) Install two (2) showers and change rooms.
    f) Install glass entry in rear of Premises.
    g) Pave small basketball area in rear of Premises on vacant land owned by
       Lessor.
    h) Paint and recarpet Premises.

53. TENANT IMPROVEMENTS - LESSOR'S CONSENT:
    Lessor consents, in principal to the above improvements subject to the
    following:
    a) Lessee adheres to all the terms and conditions of Paragraph 7.3(b)
       (Utility Installation, Trade Fixtures, Alterations Consent) of the Lease.
    b) If Lessee removes the existing dropped ceiling and vacates the
       Premises at the termination of the initial lease term, if required by
       Lessor, Lessee shall, at its sole expense, install a new nine(9) foot
       fine line dropped ceiling grid using 2' x 2' ceiling tiles with four
       foot, 4 tubbed fluorescent lighting fixtures, HVAC ducting and fire
       sprinklers.
    c) If Lessee exercise their option to extend the term of the lease for an
       additional five (5) years, and if Lessee is not in default of the terms
       and conditions of the lease during the option term, Lessee shall not
       be required to reinstall the dropped ceiling including tiles, lighting,
       sprinklers and HVAC ducting.
    d) If Lessee paves a small area on the vacant land Lessors approval is
       conditional on Lessor not needing the land for any other use. If Lessor,
       at his sole discretion, has an alternate use for the property, Lessee
       agrees to remove any improvements on the pavement within sixty (60) days
       of written notification.

<PAGE>

54. TENANT IMPROVEMENTS - LESSOR'S ALLOWANCE:
    Lessor shall credit Lessee with a Tenant Improvement Allowance for the
    following:
    a) Replace the carpeting in the areas in the Premises that are currently
       carpeted with a comparable grade carpet.
    b) Repaint the interior wall surfaces to the Premises.
    c) Install a double wide glass door in the rear entrance to the Premises.
       If structurally possible, install glass panels adjacent to the glass
       doors.

    Prior to March 29, 2000, Lessor will obtain costs estimates for these
    improvements and submit same to Lessee for approval. The approved amount
    will be credited towards Lessee's June and July, 2000 rent obligation.

55. TENANT IMPROVEMENT - CONSTRUCTION RESPONSIBILITY:
    Lessee shall be responsible for all costs and supervision to the tenant
    improvements. This includes, but is not limited to, the costs of
    material, permits, fees, architects, consultants and overhead.

56. COUNTER:
    Prior to March 29, 2000, Lessor, at his sole cost, shall remove the
    counter at the entrance of the Premises.

57. LIMIT ON LESSEE'S LEGAL COMPLIANCE OBLIGATIONS:
    Notwithstanding the foregoing to anything to the contrary contained in
    this Lease, Lessee shall not be responsible for compliance with any laws,
    codes, ordinances or other governmental directives where such compliance
    would require capital expenditures or is not related specifically to
    Lessee's use and occupancy of the Premises. For example, if any
    governmental authority should require the Building or the Premises to be
    structurally strengthened against earthquake, or should require the
    removal of asbestos from the Premises and such measures are imposed as a
    general requirement applicable to all tenants rather than as a condition
    to Lessee's specific use or occupancy of the Premises, such work shall be
    performed by and at the sole cost of Lessor.

58. LESSOR REPRESENTATIONS:
    Notwithstanding anything to the contrary in this Lease, Lessor,
    represents that, to the best of Lessor's knowledge, with Lessor's
    knowledge being defined to be the personal knowledge of Herman Bennett,
    on the commencement of the term hereof: (a) the Premises shall comply with
    all laws, codes, ordinances and other governmental requirements then
    applicable to the Premises and the building and/or complex in which the
    Premises are located; (b) the Premises, including the improvements and
    equipment therein, shall be in good working order, condition, and repair,
    (c) the Premises, the building and/or complex in which the Premises are
    located, and the land and ground/water thereunder, shall be free of
    contamination by any petroleum, asbestos, "PCB's" or radioactive
    materials or any other hazardous or toxic substances then regulated by
    any applicable local, state, or federal law; (d) Lessor is the fee owner of
    the building; and (e) Lessor knows of no material defects in the Premises
    or Building which would unreasonably interfere with Lessee's use and
    enjoyment of the Premises.

    In the event of any breach of any of the foregoing representations of
    Lessor in the preceding paragraph, Lessor shall promptly rectify the same
    at its sole cost and expense, and shall indemnify, defend and hold Lessee
    harmless from and against any damages, liability, suits, losses, claims,
    actions costs or expenses, including attorney's and consultants' fees and
    costs suffered by Lessee in connection with any such breach.

<PAGE>

    Lessor shall hold Lessee harmless from and against any and all liability,
    damages, loss, suits, claims, actions, costs and expenses, including
    without limitation, any attorney's fees, arising from any contamination
    of the Premises, if any, by any Hazardous Materials, where such
    contamination arose prior to the date of occupancy of Lessee.

59. HAZARDOUS MATERIALS:
    As in an real estate transaction, its is recommended that you consult
    with a professional such as a civil engineer, industrial hygienist or
    other person, with experience in evaluating the condition of the property
    including the possible presence of asbestos, hazardous materials and
    underground storage tanks. Owner agrees to disclose to Broker and to
    prospective purchasers and tenants any and all information which Owner
    has regarding present and future zoning and environmental matters
    affecting the Property and regarding the condition of the Property
    including, but not limited to, structural, mechanical and soils
    conditions, the presence and location of asbestos, PCB transformers,
    other toxic, hazardous or contaminated substances, and underground
    storage tanks, in, on, or about the Property. Broker is authorized to
    disclose any such information to prospective purchasers or tenants.

60. ADA:
    Please be advised that an owner or tenant of real property may be subject
    to the American With Disabilities Act (the ADA), a Federal law codified
    at 42 USC Section 12101 et seq. Among other requirements of the ADA that
    could apply to your property, Title III of the ADA requires owners and
    tenants of "public accommodations" to remove barriers to access by
    disabled persons and provide auxiliary aids and services for hearing,
    vision or speech impaired persons by January 26, 1992. The regulations
    under Title III of the ADA are codified at 28 CFR Part 36. We recommend
    you review the ADA and regulations of CB Richard Ellis cannot give you
    legal advice on these issues.

_________                                                           _________
INITIALS                                                            INITIALS

<PAGE>

                                    [logo]

DATED    March 21, 2000
       --------------------------

BY AND BETWEEN (LESSOR)  Bennett Center, LLC, a Delaware Limited
                        --------------------------------------------
                         Liability Company
                        --------------------------------------------

               (LESSEE)  ImprovementNet, Inc., a California
                        --------------------------------------------
                         Corporation
                        --------------------------------------------

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

ADDRESS OF PREMISES:     100 Camino Ruiz, Camarillo, CA
                        --------------------------------------------

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

Paragraph   61
          ------

A. RENT ADJUSTMENTS:
   The monthly rent for each month of the adjustment period(s) specified below
shall be increased using the method(s) indicated below:
(Check Method(s) to be Used and Fill In Appropriate)

/X/ I.  Cost of Living Adjustments(s) (COLA)
        a.  On (Fill in COLA Dates):  May 1, 2001, May 1, 2002; May 1, 2003;
-------------------------------------------------------------------------------
May 1, 2004
-------------------------------------------------------------------------------
the Base Rent shall be adjusted by the change, if any, from the Base Month
specified below, in the Consumer Price Index of the Bureau of Labor
Statistics of the U.S. Department of Labor for (select one): / / CPI W (Urban
Wage Earners and Clerical Workers) or /X/ CPI U (All Urban Consumers), for
(Fill in Urban Area):  Los Angeles - Riverside - Orange County                ,
                      ---------------------------------------------------------
All items (1982-1984 = 100), herein referenced to "CPI". Increases shall not
be greater than three percent (3%) per year.

     b.  The monthly rent payable in accordance with paragraph A.I.s. of this
Addendum shall be calculated as follows: the Base Rent set forth in paragraph
1.5 of the attached Lease, shall be multiplied by a fraction the numerator of
which shall be the CPI of the calendar month two months prior to the month(s)
specified in paragraph A.I.s. above during which the adjustment is to take
effect, and the denominator of which shall be the CPI of the calendar month
which is two months prior to (select one): /X/ the first month of the term of
this Lease as set forth in paragraph 1.3 ("Base Mont") or / / (Fill in Other
"Base Month"): _______________________. The sum so calculated shall
constitute the new monthly rent hereunder, but in no event, shall any such
new monthly rent be less than the rent payable for the month immediately
preceding the rent adjustment.

     c.  In the event the compilation and/or publication of the CPI shall be
transferred to any other governmental department or bureau or agency or shall
be discontinued, then the index most nearly the same as the CPI shall be used
to make such calculation. In the event that the Parties cannot agree on such
alternative index, then the matter shall be submitted for decision to the
American Arbitration Association in accordance with the then rules of said
Association and the decision of the arbitrators shall be binding upon the
parties. The cost of said Arbitration shall be paid equally by the Parties.

/ / II. Market Rental Value Adjustment(s) (MRV)

        a.  On (Fill in MRV Adjustment Date(s):
                                                -------------------------------

-------------------------------------------------------------------------------
the Base Rental shall be adjusted to the "Market Rental Value" of the
property as follows:

             1) Four months prior to each Market Rental Value Adjustment Date
described above, the parties shall attempt to agree upon what the new MRV
will be on the adjustment date. If agreement cannot be reached whithin thirty
days, then:

                  (a)  Lessor and Lessee shall immediately appoint a mutually
acceptable appraiser or broker to establish the new MRV within th enext
thirty days. Any assoicated costs will be split equally between the Parties,
or

                  (b)  Both Lessor and Lessee shall immediately make a
reasonable determination of the MRV and submit such determination, in
writing, to arbitration in accordance with the following provisions:

                       (i)  Within fifteen days thereafter, Lessor and Lessee
shall each select an / / appraiser or / / broker ("Consultant" - check one)
of their choice to act as an arbitrator. The two arbitrators so appointed
shall immediately select a third mutually acceptable Consultant to act as a
third arbitrator.

                       (ii)  The Three arbitrators shall within thirty days
of the appointment of the third arbitrator reach a decision as to what the
actual MRV for the Premises is, and whether Lessor's or Lessee's submitted
MRV is the closest thereto. The decision of a majority of the arbitrators
shall be binding on the Parties. The submitted MRV which is determined to be
the closest to the actual MRV shall thereafter be used by the Parties.

                       (iii)  If either of the Parties fails to appoint an
arbitrator within the specified fifteen days, the arbitrator timely appointed
by one of them shall reach a decision on his or her own, and said decision
shall be binding on the Parties.

                       (iv)  The entire cost of such arbitration shall be
paid by the party whose submitted MRV is not selected, ie. the one that is
NOT the closest to the actual MRV.

     2)  Notwithstanding the foregoing, the new MRV shall not be less than
the rent payable for the month immediately preceding the rent adjustment.

   b.  Upon the establishment of each New Market Rental Value:
     1)  the new MRV will become the new "Base Rent" for the purpose of
calculating any further Adjustments, and

                                                                INITIALS:   R
                                                                          -----
                                                                           H.B.
MULTI-TENANT--MODIFIED NET                                                -----
-C- American Industrial Real Estate Association 1993

                                Page 1 of 2

<PAGE>

     2)  the first month of each Market Rental Value term shall become the
new "Base Month" for the purpose of calculating any further Adjustments.

/ / III. "Fixed Rental Adjustment(s) (FRA)
The Base Rent shall be increased to the following amounts of the datas set
forth below:

    On (Fill in FRA Adjustment Date(s)):    The New Base Rent shall be:

                                            $
    ------------------------------------    -----------------------------------
                                            $
    ------------------------------------    -----------------------------------
                                            $
    ------------------------------------    -----------------------------------
                                            $
    ------------------------------------    -----------------------------------

B.  NOTICE:
    Unless specified otherwise herein, notice of any such adjustments, other
than Fixed Rental Adjustments, shall be made as specified in paragraph 23 of
the Lease.

C.  BROKER'S FEE:
    The Brokers specified in paragraph 1.10 shall be paid a Brokerage Fee for
each adjustment specified above in accordance with paragraph 15 of the Lease.

                                                                INITIALS:   R
                                                                          -----
                                                                           H.B.
MULTI-TENANT--MODIFIED NET                                                -----
-C- American Industrial Real Estate Association 1993

                                Page 2 of 2

<PAGE>

                                    [Logo]

                             OPTION(S) TO EXTEND
                           STANDARD LEASE ADDENDUM

     Dated    March 21, 2000
            -----------------------------------------------

     BY AND BETWEEN (LESSOR) Bennett Center, LLC, a Delaware Limited
                             ---------------------------------------------
                             Liability Company
                             ---------------------------------------------

                    (LESSEE) ImproveNet, Inc., a California
                             ---------------------------------------------
                             Corporation
                             ---------------------------------------------

     ADDRESS OF PREMISES:    100 Camino Ruiz, Camarillo, CA
                             ---------------------------------------------

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

Paragraph  62
          -----

A. OPTION(S) TO EXTEND:

Lessor hereby grants to Lessee the option to extend the term of this Lease
for one (1) additional sixty (60) month period(s) commencing when the prior
term expires upon each and all of the following terms and conditions:

     (i)  In order to exercise an option to extend, Lessee must give written
notice of such election to Lessor and Lessor must receive the same at least 9
but not more than 12 months prior to the date that the option period would
commence, time being of the essence. If prior notification of the exercise of
an option is not given and/or received, such option shall automatically
expire. Options (if there are more than one) may only be exercised
consecutively.

     (ii)  The provisions of paragraph 39, including those relating to
Lessee's Default set forth in paragraph 39.4 of this Lease, are conditions of
this Option.

     (iii)  Except for the provisions of this Lease granting an option or
options to extend the term, all of the terms and conditions of this Lease
except where specifically modified by this option shall apply.

     (iv)  This Option is personal to the original Lessee, and cannot be
assigned or exercised by anyone other than said original Lessee and only
while the original Lessee is in full possession of the Premises adn without
the intention of thereafter assigning or subletting.

     (v)  This monthly rent for each month of the option period shall be
calculated as follows, using the method(s) indicated below:
(Check Method(s) to be Used and Fill in Appropriately)

/X/ I.  Cost of Living Adjustment(s)(COLA)
    a.  On (Fill in COLA Dates):  May 1, 2006; May 1, 2007; May 1, 2008;
                                  --------------------------------------------
May 1, 2009
------------------------------------------------------------------------------
the Base Rent shall be adjusted by the change, if any, from the Base Month
specified below, in the Consumer Price Index of Labor Statistics of the U.S.
Department of Labor for (select one): / / CPI W (Urban Wage Earners and
Clerical Workers) or /X/ CPI U (All Urban Consumers), for (Fill in Urban
Area):

Los Angeles - Riverside - Orange Co.
------------------------------------------------------------------------------
All items (1982-1984 = 100), herein referred to as "CPI". Increase shall not
be greater than three percent (3%) per year. However, in the event that the
interest rate for the new loan for the building exceeds 9% per year, the
increase limit of 3% per year for COLA adjustments on May 1, 2008 and May 1,
2009 shall be increased by 75% of the interest rate above 9%.

     b.  The monthly rent payable in accordance with paragraph A.I.a. of this
Addendum shall be calculated as follows: the Base Rent set forth in paragraph
A.11.a below, shall be multiplied by a fraction the numerator of which shall
be the CPI of the calendar month two months prior to the month(s) specified
in paragraph A.I.a. above during which the adjustment is to take effect, and
the denominator of which shall be the CPI of the calendar month which is two
months prior to (select one): / / the first month of the term of this Lease
as set forth in paragraph 1.3 ("Base Month") or /X/ (Fill in Other "Base
Month"): May 2005. The sum so calculated shall constitute the new monthly
rent hereunder, but in no event, shall any such new monthly rent be less than
the rent payable for the month immediately preceding the rent adjustment.

     c.  In the event the compilation and/or publication of the CPI shall be
transferred to any other governmental department or bureau or agency or shall
be discontinued, then the index most nearly the same as the CPI shall be used
to make such calculation. In the event that the Parties cannot agree on such
alternative index, then the matter shall be submitted for decision to the
American Arbitration Association in accordance with the then rules of said
Association and the decision of the arbitrators shall be binding upon the
parties. The cost of said Arbitration shall be paid equally by the Parties.

/X/ ii.  Market Rental Value Adjustment(s) (MRV)
     a.  On (Fill in MRV Adjustment Date(s)) May 1, 2005
                                             ---------------------------------

------------------------------------------------------------------------------
the Base Rent shall be adjusted to the "Market Rental Value" of the property
as follows:

     1) Four months prior to each Market Rental Value Adjustment Date
described above, the Parties shall attempt to agree upon what the new MRV
will be on the adjustment date. If agreement cannot be reached, within thirty
days, then:

        (a)  Lessor and Lessee shall immediately appoint a mutually
acceptable appraiser or broker to establish the new MRV within the next
thirty

                                                                INITIALS:   R
                                                                          -----
                                                                           H.B.
MULTI-TENANT--MODIFIED NET                                                -----
-C- American Industrial Real Estate Association 1993

                                Page 1 of 2

<PAGE>

days. Any associated costs will be split equally between the Parties, or

          (b)  Both Lessor and Lessee shall each immediately make a
reasonable determination of the MRV and submit each determination, in
writing, to arbitration in accordance with the following provisions:

               (i)  Within fifteen days thereafter, Lessor and Lessee shall
each select an / / appraiser or /X/ broker ("Consultant" - check one) of
their choice to act as an arbitrator. The two arbitrators so appointed shall
immediately select a third mutually acceptable Consultant to act as a third
arbitrator.

               (ii)  The three arbitrators shall within thirty days of the
appointment of the third arbitrator reach a decision as to what the actual
MRV for the Premises is, and whether Lessor's or Lessee's submitted MRV is
the closest thereto. The decision of a majority of the arbitrators shall be
binding on the Parties. The submitted MRV which is determined to be the
closest to the actual MRV shall thereafter be used by the Parties.

               (iii)  If either of the Parties fails to appoint an arbitrator
within the specified fifteen days, the arbitrator timely appointed by one of
them shall reach a decision on his or her own, and said decision shall be
binding on the Parties.

               (iv)  The entire cost of such arbitration shall be paid by the
party whose submitted MRV is not selected, ie, the one that is NOT the
closest to the actual MRV.

          2) Notwithstanding the foregoing, the new MRV shall not be less
than the rent payable for the month immediately preceding the rent adjustment.

     b.  Upon the establishment of each New Market Rental Value:

         1) the new MRV will become the new "Base Rent" for the purpose of
            calculating any further Adjustments, and
         2) the first month of each Market Rental Value term shall become the
            new "Base Month" for the purpose of calculating any further
            Adjustments.

/ /  iii.  Fixed Rental Adjustment(s) (FRA)
The Base Rent shall be increased to the following amounts on the dates set
forth below:

    On (Fill in FRA Adjustment Date(s)):    The New Base Rent shall be:
                                            $
    -------------------------------------   -----------------------------------
                                            $
    -------------------------------------   -----------------------------------
                                            $
    -------------------------------------   -----------------------------------
                                            $
    -------------------------------------   -----------------------------------

B.  NOTICE:
    Unless specified otherwise herein, notice of any rental adjustments,
other than Fixed Rental Adjustments, shall be made as specified in paragraph
23 of the Lease.

C.  BROKER'S FEE:
    The Brokers specified in paragraph 1.10 shall be paid a Brokerage Fee for
each adjustment specified above in accordance with paragraph 15 of the Lease.

                                                                INITIALS:   R
                                                                          -----
                                                                           H.B.
MULTI-TENANT--MODIFIED NET                                                -----
-C- American Industrial Real Estate Association 1993

                                Page 2 of 2

<PAGE>

                                                                      EXHIBIT A

                                [Floor Plan]

<PAGE>

                                                                      EXHIBIT B

                                [Floor Plan]

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