Document:

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                                                                   Exhibit 10.35

                                   LEASE AGREEMENT

THIS AGREEMENT is made and entered into this 29 day of May, 1998, by and
between VRS/TA/S Houston, L.P., a Texas limited partnership (hereinafter
called "Lessor"), and United Stationers Supply Co., an Illinois corporation
(hereinafter called "Lessee").

                           W  I  T  N  E  S  S  E  T  H:

Lessor, for and in consideration of the covenants of Lessee herein contained,
and subject to the terms, provisions and conditions hereinafter set forth,
hereby leases, demises and lets unto Lessee, and Lessee hereby leases and takes
from Lessor, that certain tract or parcel of land situated in Harris County,
Texas, as described in EXHIBIT A attached hereto and made a part hereof (the
"Land"), together with and including the building containing approximately
240,000 square feet of floor space and improvements to be made thereon by Lessor
as provided in ARTICLE 1 below, said Land and improvements being hereinafter
referred to as the "Leased Premises".

TO HAVE AND TO HOLD the said Leased Premises, together with all and singular
rights, privileges, and appurtenances "hereunto attaching and belonging, unto
the said Lessee for and during the term hereinafter set forth and in accordance
with the terms, provisions and conditions set forth below.

Wherever and as often as the words this "Agreement" or this "Lease" are used or
appear in this instrument, the same shall mean and refer to this instrument, and
all exhibits hereto and all plans, drawings and specifications identified herein
and any amendments to the same.

                                     Article 1

                       CONSTRUCTION OF IMPROVEMENTS BY LESSOR

              (a)    CONSTRUCTION DOCUMENTS:  Lessor will construct on
the Leased Premises a warehouse and office building containing a total of
approximately 240,000 square feet of space (the "Building"), together with
adjacent outdoor surface parking  consisting of not less than 80 spaces, and the
landscaping and  other improvements, if any, located outside of the Building on
the Property (the "Common Areas") all as described on the site plan, the floor
plan, and the related documents attached hereto as EXHIBIT B (collectively, the
" Site Plan Documents").  As used herein, the term "Improvements'' shall mean
the Building and the Common Areas.  Based upon the Site Plan Documents, Lessor
and Lessee shall consult and cooperate with each other to finalize the initial
construction plans so that the Lessor can prepare all of the detailed
architectural plans and specifications and the structural, mechanical,
electrical, and related construction documents for the Building (the
"Construction Documents").  The Site Plan Documents have been prepared by
Lessor in consultation with, and approved by, Lessee.  Within 75 days after the
date of this Lease (as extended due to any Initial Delay [as defined below])
Lessor shall deliver to Lessee final and complete copies of all

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of the final Construction Documents which shall be prepared by Lessor, at
Lessor's expense, pursuant to and in accordance with the Site Plan Documents
and the procedures set forth herein.  Within twenty (20) days after Lessee's
receipt of the Construction Documents, Lessee shall deliver to Lessor a
written notice approving the same or a written notice specifying any of
Lessee's objections thereto; provided that Lessee shall not have the right to
object to any aspect of the Construction Documents which are logical
extensions of detail and substantially consistent with the general nature and
scope of the Improvements as shown on the Site Plan Documents.  Lessor and
Lessee shall use reasonable good faith efforts to resolve any disagreements
regarding any objection made by Lessee to the Construction Documents.  If
Lessor and Lessee do not resolve any such disagreements within twenty (20)
days after the date of Lessee's notice to Lessor, both Lessor and Lessee
shall have the right to terminate this Lease by written notice given to the
other party at any time after such date and prior to the mutual approval of
the Construction Documents.  As used herein, the term "Initial Delay" shall
mean any delay in the completion of the initial Construction Documents which
is directly attributable to (i) any new or additional changes to the
Improvements requested by Lessee prior to the completion of the initial
Construction Documents, or (ii) any delay by Lessee in responding to the
initial Construction Documents beyond the 20-day period provided herein.

              (b)    CONSTRUCTION SCHEDULE:  The general contractor for the
Improvements selected by Lessor and approved by Lessee is Dillard & Weaver
Construction, Inc.  (the "Contractor").  If Lessor determines that  it is
necessary or desirable to find a substitute general contractor, Lessor shall
have the right to dismiss the contractor and select an appropriate substitute,
which selection shall be subject to the approval of Lessee, which approval shall
not be unreasonably withheld.  All of the construction work shall be carried out
by a Contractor under the sole direction of Lessor.  Within thirty (30) days
after the date hereof, Lessor shall prepare and furnish to Lessee a construction
schedule for the Improvements showing the time periods estimated by Lessor for
the completion of the major phases of the Improvements (the "Construction
Schedule").  Lessor shall make a good faith effort to advise Lessee as soon as
reasonably possible if Lessor determines that Lessor's actual progress in
completing any phase of the Improvements is behind the time periods set forth on
the Construction Schedule in any material way.

              (c)    COMMENCEMENT AND COMPLETION DATES:  On or before
September 1, 1998 (as extended due to any Initial Delays) (which date is
referred to herein as the ("Construction Date"), Lessor shall, at Lessor's
sole cost and expense, commence the on-site physical construction of the
Improvements on the land.  From and after the Construction Date, Lessor shall
use diligent efforts to cause Substantial Completion of the Improvements in
accordance with the Construction Documents to occur on or before May 1, 1999
(the "Scheduled Completion Date").

              (d)    TAX ABATEMENT:  Lessee has filed an application for
property tax abatement with the City of Houston - Harris County - Independent
School District.  The parties agree that the receipt of such tax abatement is
a material condition for Lessee

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to enter into this Lease.  Accordingly, it is agreed that if such tax
abatement is not received by Lessee, Lessee may terminate the Lease as
provided in Section 1(e).

              (e)    LESSEE'S RIGHT TO TERMINATE:

                     (1)  If Lessee has not received a property tax abatement by
              AUGUST 1, 1998  or if Lessor has not commenced construction of the
              Improvements on or before Commencement Date in accordance with the
              terms set forth in SECTION 1(c) of this Lease, Lessee shall have
              the right to terminate this Lease by written notice given to
              Lessor at any time after denial of the tax abatement or after the
              Construction Date and prior to the date that Lessor actually
              commences such construction.  If Lessor has not caused Substantial
              Completion of the Improvements to occur on or before the Scheduled
              Completion Date (as extended due to any Lessee Delay and to any
              Unavoidable Delay), Lessee shall have the right to terminate this
              Lease by written notice given to Lessor at any time after the
              Scheduled Completion Date and before the date that Substantial
              Completion actually occurs.  If Lessor has not caused Substantial
              Completion of the Improvements to occur on or before JULY 1, 1999
              (as extended due to any Lessee Delay but not extended for any
              Unavoidable Delay), Lessee shall have the right to terminate this
              Lease by written notice given to Lessor at any time after such
              date and prior to the date that Substantial Completion actually
              occurs.

                     (2)    In the event of any termination of this Lease under
              SECTION 1(a) or under this SECTION 1(e), Lessor and Lessee shall
              be relieved of all further obligations under this Lease, which
              obligations shall continue in full force and effect.

              (f)    SUBSTANTIAL COMPLETION:  As used herein, the term
"Substantial Completion" shall mean the date when all of the following events
have occurred:

              (1)    The project architect (the "Architect") shall have
       delivered to Lessor and Lessee a written certificate stating that all of
       the Improvements have been substantially completed in substantial
       accordance with the Construction Documents, except for the Punch List
       Items.

              (2)    Lessor shall have obtained a final Certificate of
       Occupancy for the Building permitting the use of the Building for
       warehouse and office use.

              (3)    Lessor shall have delivered to Lessee written certification

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       that Lessor has met its obligations under clauses (1) and (2) of this
       SECTION 1(f), together with a current list of the approved Punch List
       Items.

              Notwithstanding the foregoing, Lessor shall give to Lessee not
less than ten (10) days written notice of the date on which Lessor expects to
achieve Substantial Completion.

              (g)    CHANGE ORDERS:  Lessee may, from time to time, submit to
Lessor any written requests for changes or additions to the Construction
Documents and/or the Improvements desired by the Lessee in such detail as
Lessor may reasonably require (each a "Change Order"), which changes or
additions shall be subject to Lessor's approval, which approval shall not be
unreasonably withheld or delayed.  Such approval shall include Lessor's
written notice to Lessee of (i) the net increase, if any, in the actual out
of-pocket cost to be incurred by Lessor in completing the work associated
with the Change Order (the "Change Cost"), and (ii) the anticipated delays,
if any, in completing the work as a result of such Change Order, including
the processing thereof (the "Change Delay").  Within five (5) business days
after Lessee's receipt of such notice, Lessee shall give to Lessor written
notice to proceed or not to proceed with the Change Order.  Lessee's notice
to proceed with the Change Order shall include a specific written agreement
from Lessee to pay to Lessor the Change Cost and written confirmation of
Lessee's acceptance of the Change Delay as a Lessee Delay hereunder.
Following the required approvals, upon Lessee's written acceptance of any
such Change Order, Lessor shall promptly revise the Construction Documents to
incorporate the Change Order and shall proceed to complete the Improvements
in accordance with the Change Order. Any and all Change Costs approved by
Lessee and incurred by Lessor hereunder shall be reimbursed by Lessee to
Lessor over the initial ten (10) year term of this Lease in amounts equal to
for each year the sum of 10.5% multiplied by the total amount of the Change
Costs.  Such amounts shall be reimbursed by Lessee to Lessor in equal monthly
installments together with the base rent payable by Lessee hereunder.
Notwithstanding the foregoing, Lessor shall not be obligated hereby to pay
any Change Costs after the total sum of all Change Costs paid by Lessor
hereunder causes the total change order to exceed $200,000.00.  Any Change
Costs which will not be paid by Lessor hereunder shall be paid by Lessee on
an item by item basis within ten (10) business days after the date that each
such Change Order has been completed by Lessor and Lessor has delivered to
Lessee a written invoice for such work.  Calculations of any Change Costs
shall be subject to audit, verification, and correction, if necessary, by
Lessee (who shall have access to the relevant books and records maintained by
Lessor for such purpose) without either party being prejudiced by any prior
payment thereof; provided that any such audit shall be completed for each
Change Order within forty-five (45) days after the date of Lessee's receipt
of the relevant invoices, statements, and other documents supporting Lessor's
calculation of the Change Cost for each such Change Order.  Any disagreements
between Lessor and Lessee regarding the calculation of any Change Costs shall
be resolved in accordance with the procedures set forth in Section l(p) of
this Lease.

              (h)    SUBSTANTIAL COMPLETION AND PUNCH LIST ITEMS:  As used
herein, the term "Punch List Items" shall mean details of construction,

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decoration, and mechanical adjustment which are part of the Improvements and
which in the aggregate, are minor in character and do not materially interfere
with the Lessee's use or enjoyment of the Leased Premises.  Concurrently with
Substantial Completion, the Architect, the Contractor, Lessor, and Lessee shall
meet to review and approve of the matters to be included as Punch List Items,
which approvals shall not be unreasonably withheld.  Punch List Items shall be
completed by Lessor at Lessor's expense.  Lessor shall use its best efforts to
complete all of the Punch List Items within thirty (30) days after the date of
Substantial Completion.

              (i)    LESSOR'S WARRANTY:  In addition to (and not in lieu of)
Lessor's obligations under the Lease with respect to repairs, Lessor warrants to
Lessee that the Improvements will be free from defects in workmanship and
materials for a period of one (1) year after the date of Substantial Completion.
If, at any time during such warranty period, any of the workmanship or material
used in the construction of the Improvement is defective, and Lessee shall,
within the warranty period, so notify Lessor in writing that such workmanship or
material is defective, Lessor shall cause such defective workmanship or material
to be corrected, repaired, or replaced in a manner reasonably acceptable to both
Lessor and Lessee.  Such correction, repair, or replacement shall be performed
by Lessor, at Lessor's expense, as promptly as reasonably possible and in such
manner so as to minimize any interference with Lessee in its operations in and
about the Leased Premises.  If Lessor fails to correct any such defect within a
reasonable period of time after Lessor's receipt of notice thereof, Lessee shall
have the right (but not the obligation), in addition to all other rights and
remedies available to Lessee for such failure, to correct such defect and to
require Lessor to reimburse Lessee for all of the costs incurred by Lessee in
connection therewith, including a reasonable amount for Lessee's overhead and
administrative costs in coordinating such work.  Lessor shall pay such costs to
Lessee within five (5) business days after Lessor's receipt of a written
statement therefor.  Within thirty (30) days after the Commencement Date, Lessor
shall deliver to Lessee one complete set of an as built mylar drawing for the
Building and copies of all manuals, pamphlets, and other instructional materials
received by Lessor covering the care, use, operation, and maintenance of the
materials and equipment used in the construction of the Improvements.

              (j)    INSPECTIONS AND ACCESS BY LESSEE:  Lessee and Lessee's
representatives shall have the right, from time to time, to observe the progress
of the Improvements, to inspect the installation of the Improvements, and to
object to any aspect of the Improvements which is not in substantial conformance
with the Construction Documents; provided, however, no such observation shall
create liability or responsibility on the part of Lessee with respect to the
nature or quality or the Improvements.  Lessor shall be available, and cause the
Contractor to be available, to Lessee or its representatives from time to time
upon reasonable prior notice when necessary or desirable for the purpose of
reviewing the Improvements.

              (k)    COMPLIANCE WITH LAWS:  Lessor, at its expense, shall obtain
all approvals, permits, and other consents required to commence, perform and
complete the Improvements; shall at all times cause all work in connection with
the Improvements

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to be carried out in compliance with all such consents and in compliance with
all applicable laws, codes, regulations, and other legal requirements; and
shall maintain for inspection by Lessee, upon reasonable request and at
reasonable intervals, copies of the invoices and statements relating to the
Improvements which Lessor generally maintains and all approvals, permits,
inspection reports, notices, and other similar documents prepared or received
by Lessor or the Contractor.

              (l)  LESSEE'S WORK:  All finishing work, equipment installation,
cabling, and interior wall finish for the offices, or other work (the "Lessee's
Work") desired by Lessee, if any, and not initially or thereafter included in
the Improvements, shall be performed by Lessee, at Lessee's expense, through
contractors selected by Lessee and approved by Lessor, which approval shall not
to be unreasonably withheld or delayed.  Lessor and Lessee shall each cause
their respective general contractor and/or subcontractors for the Improvements
and Lessee's Work to cooperate with each other in facilitating the mutual access
to the Leased Premises and in coordinating the timing of the stages of the
Improvements and the Lessee's Work so as to facilitate the completion on a
timely basis.  To the extent reasonably possible and without having to incur
additional expense, Lessor shall, prior to Substantial Completion, provide
Lessee with access to the Leased Premises and storage space at the site for
Lessee's equipment, trade fixtures, and other property in connection with
Lessee's Work and shall furnish water, electricity, elevator service, and HVAC
to the Leased Premises during the performance of any Lessee's Work; provided
that, if requested by Lessor, Lessee shall reimburse Lessor for the cost of any
such utility services used by Lessee, which cost shall be prorated by Lessor on
a fair and equitable basis to reflect the amount of such services actually used
by Lessee in connection with the performance of any of the Lessee's Work.

              (m)    LESSEE DELAYS:  The term "Lessee Delay" shall mean any
actual delay in the completion of the Improvements which delays Substantial
Completion and which is due to any act or omission of Lessee, its agents, or
contractors.  Lessee Delays shall include:

              (1)    Initial Delays

              (2)    Change Delays.

              (3)     Any unreasonable delay by Lessee in giving Lessor notice
of Lessee's approval of any Change Orders or in giving Lessor notice of any
other consents or approvals required of Lessee hereunder in connection with the
Improvements.

              (n)    UNAVOIDABLE DELAY:  In the event Lessor shall be delayed or
       hindered in or prevented from the performance of any act required
       hereunder in connection with the completion of the Improvements by reason
       of strikes, lockouts, labor troubles, inability to procure materials,
       failure of power, restrictive governmental laws or regulations, riots,
       insurrection, war or other reason of a like nature and not within the
       reasonable control of Lessor ("Unavoidable Delay"), then the time allowed
       for performance of such act shall be extended by a period

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       equivalent to the period directly attributable to such delay.

              (o)    NOTICE OF DELAY:  At the request of either the Lessor or
the Lessee, at any time and from time to time prior to the date of Substantial
Completion, Lessor or Lessee may require the other party to provide a written
notice setting out whether or not Lessor or Lessee, as the case may be, is aware
of any delays under either Section 1(m) or Section 1(n) hereof as of the date of
such notice.

              (p)    RESOLUTION OF DISPUTES:  If  Lessor and Lessee disagree as
to whether the Construction Documents have been properly prepared or as to
whether any aspect of the Improvements has been fully or properly completed, or
is otherwise defective, or as to the appropriate manner to correct any such
deficiency, or as to the calculation of Change Costs hereunder, or as to the
designation of any Lessee Delay or Lessor Delay hereunder, and if  Lessor and
Lessee, using their reasonable good faith efforts, are otherwise unable to
resolve such dispute, then such dispute shall be resolved by referring the same
to Joe Powers architect, whose address is 811 Rusk, Suite 101, Houston, Texas
77002  and whose telephone number is  (713) 227-0811  (the "Consulting
Architect").  In order to initiate such a resolution of any dispute, a party
shall be required to give the other party and the Consulting Architect written
notice requesting such resolution, which notice shall identify the issue in
dispute.  The Consulting Architect shall promptly notify the parties of the
date, time, and place for the meeting to resolve of such dispute, which date
shall in no event be later than ten (10) business days after the Consulting
Architect's receipt of the demand for resolution.  Such notice may be given by
telephone if promptly confirmed by written notice.  At the conclusion of such
meeting, the Consulting Architect shall advise both parties of the Consulting
Architect's decision.  The Consulting Architect shall send the parties written
notice confirming such decision immediately thereafter.  Both parties shall be
bound by any and all decisions made by the Consulting Architect and shall
perform their obligations hereunder in accordance with such decisions.  The
Consulting Architect's fees and expenses shall be split equally between the
parties.

                                     Article 2

                                        TERM

              (a)    Subject to and upon terms, provisions and conditions
hereinafter set forth, this Lease shall be and continue in full force and effect
for an initial term of ten (10) years ("Initial Term" or "Term"), beginning on
the Commencement Date as hereinafter defined.

              b)     The Initial Term of this Lease shall commence on the date
that Lessor has Substantially Completed the Improvements and delivered
possession of the Leased Premises to Lessee (the "Commencement Date").  There is
attached to this Lease as EXHIBIT C a form of declaration by Lessor and Lessee
relating to the date of commencement of the term hereof, which declaration shall
be executed by both Lessor and Lessee upon said Commencement Date.  The date of
delivery of such possession, as

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shown by said declaration, shall be the Commencement Date of the Initial
Term of this Lease.

              (c)    It is agreed that Lessee may enter into the Leased Premises
prior to the completion of the Improvements for the purpose of completing the
Lessee's Work, if any, without being deemed thereby to have taken possession of
the Leased Premises or obligated itself to pay rent; provided that Lessee's Work
shall in no way interfere with the construction of such Improvements or the work
of Lessor or of Lessor's Contractor and shall not subject Lessor to any
liabilities whatsoever.  Any equipment or fixtures installed by Lessee during
such period shall remain vested in Lessee; provided, however, that if any such
equipment or fixtures installed by Lessee pursuant to the terms of this SECTION
2(c) shall be removed prior to the expiration date of this Lease, Lessee shall
be obligated, at its expense, to restore the Building to the condition existing
prior to the installation of such equipment and fixtures.

              (d)    So long as there is no uncured default hereunder by Lessee
as of the date of Lessee's exercise of any Renewal Option or as of the date of
the commencement of any Renewal Term, Lessee shall be entitled and is hereby
granted two (2) successive options (the "Renewal Options") to extend the Term of
this Lease for an additional period of five (5) years each (the "Renewal
Terms").  Except for rental, as hereinafter defined and separately provided for,
the Renewal Terms shall be on all the other terms and conditions of this Lease.
Lessee shall be entitled to exercise each Renewal Option by giving notice of
such exercise to Lessor not less than twelve (12) months prior to the expiration
of the Initial Term or first Renewal Term, as the case may be.  Should Lessee
fail to timely exercise a Renewal Option in accordance with the preceding
provisions, said Renewal Options shall expire and be of no further force and
effect.

              (e)    At the request of either party, the parties agree to
execute a short form memorandum of lease confirming the basic terms of this
Lease for recordation purposes.
                                     ARTICLE 3

                                       RENTS

              (a)    BASE RENT AND ADJUSTMENTS.

                     (1)    BASE RENT.  As consideration for the use and
              occupancy of, and as rental for, the Leased Premises, Lessee
              promises and agrees to pay Lessor, while this Lease remains in
              force and effect, for the Initial Term, $7,300,000.00 paid in
              monthly payments in advance $ 60,833.33  per month.

                     (2)    UNANTICIPATED SITE CONDITIONS.  Within thirty (30)
              days after the date of this Lease, Lessor shall complete an
              engineering evaluation and analysis of the Land to determine
              whether the site contains

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              any unanticipated physical conditions (an "Unanticipated Site
              Condition") which will cause the Lessor to incur any Material
              Construction Cost which was not foreseen  by Lessor  and not
              budgeted for in the cost  estimates prepared by Lessor and
              delivered to Lessee prior to the date of this Lease. If Lessor
              discovers any such Unanticipated Site Condition, Lessor shall
              give prompt written notice thereof to Lessee describing the
              condition, the actions required to correct it, and the
              estimated cost of such actions.  If, within thirty (30) days
              after Lessee's receipt of such notice from Lessor, Lessee and
              Lessor have not agreed upon an allocation of such costs
              (through an adjustment of rent or otherwise), both Lessor and
              Lessee shall have the right to terminate this Lease by written
              notice given to the other party.  Any such termination shall
              have the same effect as described in SECTION 1 (e) (2).

              (b)    If the term of this Lease, as provided in SECTION 2(b),
commences on a day other than the first day of a calendar month, then the first
monthly rental payment shall be reduced to and shall be the proportionate part
of the monthly rental owed for the number of days between such Commencement Date
and the first day of the following month.  Such first rental payment shall be
due on the Commencement Date of this Lease, as provided in SECTION 2(b), and the
succeeding payments of monthly rental shall be due and payable on or before the
first day of each succeeding calendar month thereafter during the full term of
the Lease.

              (c)    The rental for each Renewal Term shall be equal to the
rental for the previous period plus 10% or the total increase in the Consumer
Price Index (CPI) over the previous five years, whichever is less.

              (d)    Except as may otherwise be provided herein, Lessee agrees
to pay the rental herein reserved at the times set forth above, without
deduction or offset, in lawful money of the United States of America.  All such
rental payments shall be made to Lessor at the following address:

                            VRS/TA/S Houston, L.P.
                            520 Post Oak Blvd., Suite 320
                            Houston, Texas  77027

or to such other person or to such other place as Lessor may from time to time
designate.

                                     Article 4

                                       TAXES

              (a)    The term "Taxes" as used herein shall mean all taxes,
levies and

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assessments of every character imposed or assessed upon or against
the Leased Premises by any governmental agency or authority having jurisdiction,
whether foreseen or unforeseen; provided nothing herein shall require or be
construed to require Lessee to pay any gift, estate, inheritance, excess
profits, succession, capital levy, transfer tax, income tax, payroll tax or
other tax assessment, lien, charge or levy arising out of the rent payable by
Lessee or other income received by Lessor, its successors or assigns.  If at any
time during the term, the State of Texas or any political subdivision of the
state, including any county, city, city and county, public corporation,
district, or the United States of America, levies or assesses against Lessor a
tax, fee or excise: (i) on rents, (ii) on the square footage of the Leased
Premises, (iii) on the act of entering into this Lease, (iv) on the occupancy of
Lessee, or any other tax, fee, or excise, however described, including, without
limitation, a so-called value added tax, as a direct substitution in whole or in
part for, or (except in the case of (i) above) in addition to, any real property
taxes, Lessee shall pay before delinquency said tax, fee, or excise.

              (b)    Lessee shall pay all Taxes during the Term of this Lease
and any Renewal  Term directly to the taxing authority therefor prior to the
date on which any such Taxes would become delinquent.  Lessee shall furnish to
Lessor, within thirty (30) days after the date when due, proof of payment of all
Taxes paid by Lessee.

              (c)    If any Taxes are paid by Lessor to any taxing authority for
any tax year in installments, the amount payable by Lessee hereunder shall be
payable in similar installments, and no amount shall be payable by Lessee on
account of installments becoming payable after the expiration of the term of
this Lease which are attributable to a period of time after the expiration of
the term hereof or attributable to any period of time prior to the Commencement
Date.  If any assessment for new public improvements (and not for repair or
replacement of existing public improvements) is payable only in a lump sum,
rather than in installments, Lessee shall pay a pro rata share of such
assessment based upon the proportion that the number of years remaining in the
term of this Lease bears to the expected useful life of such new public
improvements as determined by a third party consultant.  For purposes of the
preceding sentence, the "term" of this Lease shall mean the Initial Term;
provided that, if Lessee exercises a Renewal Option, Lessee shall be assessed
its pro rata share based upon the proportion that the number of years of such
Renewal Term bears to the expected remaining useful life of such public
improvement.

              (d)    Lessor shall within ten (10) days of receipt, deliver to
Lessee statements, assessments and other notices relative to any tax or
assessment.

              (e)    Lessee shall have the right, before delinquency occurs, of
contesting, objecting to or opposing the legality,  validity or amount of any
such Taxes; provided that prompt notice of such contest, objection or opposition
shall be given to Lessor by Lessee at least twenty (20) days before any
delinquency; and provided, further, that such contest, objection or opposition
shall not be carried on or maintained after the aforementioned time limit for
the payment of said obligations unless Lessee shall have duly paid the amount
involved under protest or shall have procured and maintained a stay

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of all proceedings to enforce any collection thereof and shall also have
provided for payment thereof, together with all penalties, interest, costs,
and expenses, by a deposit of sufficient sum of money or by a good and
sufficient undertaking as may be required or permitted by law to accomplish
such a stay.  In the event of any such contest, objection or opposition,
Lessee agrees to pay and discharge any unpaid amounts finally determined to
be due within thirty (30) days after the final determination thereof or
within such later grace period as may be allowed by law.

                                     Article 5

                                     INSURANCE

              (a)    During the entire term of this Lease, Lessee, at its own
cost and expense, shall provide and keep in force for the benefit of Lessor and
Lessee comprehensive general public liability insurance policies with insurance
companies approved by Lessor and in standard form, protecting Lessor and Lessee
(and specifically naming Lessor as an additional assured) against any or all
liability in the amount of not less than $1,000,000 in respect of any one
occurrence and in the amount of not less than $1,000,000 in respect of injuries
to or death of any one person, and in the amount of not less than $1,000,000 in
respect of destruction or damage to property, which policies shall cover the
entirety of the Leased Premises.  Lessee may provide its insurance under a
blanket policy, provided the insurance has a Lessor's protective liability
endorsement attached.

              (b)    During the entire term of this Lease, Lessee shall keep
the Building and other improvements constituting a portion of the Leased
Premises insured in the name of and for the benefit of Lessor and Lessee and
the holder of any mortgage or deed of trust on the Leased Premises as their
respective interests may appear, against loss or damage by fire and all
hazards covered by the standard form of extended coverage endorsement, and
containing six (6) months' rents insurance.  Such insurance shall be for not
less than one hundred percent (100%) of the full replacement value thereof,
as the same shall change from time to time.  The term "full insurable value"
as used herein means agreed value for actual replacement costs, including the
cost of debris removal. In addition to such fire and extended coverage
insurance, Lessor shall carry Difference In Conditions coverage or its
equivalent coverage through an acceptable company admitted in the State of
Texas.  Lessee shall carry, at Lessee's sole cost and expense, fire and
extended coverage casualty insurance on all of the alterations and
improvements completed by Lessee in the Leased Premises and all trade
fixtures, equipment, inventory, and personal property located on the Leased
Premises.

              (c)    All insurance policies required by this Article 5 shall be
written by companies of recognized financial standing which are highly rated by
national rating organizations and are legally qualified to issue such insurance.

              (d)    At the commencement of the Initial Term of this Lease,
Lessee shall deliver to Lessor Certificates of Insurance manifesting the
insurance coverage

                                       11
<PAGE>

required by this Article 5 and, at least ten (10) days prior to the
expiration of each such policy, shall pay the premiums for the renewal of
such insurance and provide information satisfactory to Lessor evidencing
payment thereof.  All policies shall provide at least twenty (20) days'
written notice to both Lessor and Lessee of any cancellation, termination, or
material alteration.

              (e)    Lessee and Lessor shall cooperate in connection with the
collection of any insurance monies that may be due in the event of loss and
shall execute and deliver such proofs of loss and other instruments which may be
required for the purposes of obtaining recovery of any such insurance monies.

              (f)    Anything in this Lease to the contrary notwithstanding,
Lessor and Lessee each hereby waive and release the other from and against any
and all rights of recovery, claims or causes of action, against the other, its
agents, officers, contractors, or employees, for any loss or damage that may
occur to the Improvements, the Leased Premises, or any other improvements
thereto, or any personal property of such party therein, by reason of fire, the
elements, or any other cause which could be insured against under the terms of
any of the insurance policies required to be maintained by the respective
parties under ARTICLE 5 hereof, regardless of cause or origin, including the
negligence of the other party hereto, its agents, officers, contractors, or
employees, and covenants that no insurer shall hold any right of subrogation
against the other party.

                                     Article 6

                  USE OF LEASED PREMISES AND COMPLIANCE WITH LAWS

              (a)    It is understood and agreed that Lessee will use and occupy
the Leased Premises for general office and warehouse use and other purposes
reasonably related to Lessee's business operations.

              (b)    Lessee shall comply with and fulfill all state, federal and
municipal laws, regulations and ordinances applicable to the use of the Leased
Premises by Lessee and the business of Lessee conducted thereon.  In the event
that any installations or alterations to any of the Improvements are required by
changes in the laws, rules, regulations or ordinances applicable to the Leased
Premises because  of their use by Lessee becoming effective after the
Commencement Date, Lessee shall be required to make such installations or
alterations, but Lessee shall be reimbursed by Lessor, within thirty (30) days
after receipt of an itemized invoice for same, for a pro rata share of the cost
of complying with any such changes applicable to the use of the Leased Premises
equal to (i) the excess, if any, of the expected useful life of such alterations
or installations over the number of years remaining in the term of this Lease,
divided by (ii) the expected useful life of such alterations or installations.
For the purposes of the preceding sentence, the "term" of this Lease shall mean
the Initial Term; provided that, if Lessee exercises either or both of the
Renewal Options, during the applicable Renewal Term, Lessee shall pay its pro
rata share of any such remaining costs based upon the proportion that the number
of years in such Renewal Term bears to the expected

                                       12
<PAGE>

 remaining useful life of such alterations.

              (c)    Lessee hereby acknowledges the existence of certain laws
and regulations at the local, state and federal levels ("Environmental Laws")
that control the production, use, transfer, storage and disposal of certain
materials that have the potential to cause harm to either the physical
environment or living things, such substances hereinafter referred to as
"Hazardous Materials".  Lessee further acknowledges that it is Lessee's
responsibility to ensure that all activities carried out in the Leased Premises
during the Term of the Lease and any Renewal Terms thereof are in compliance
with the Environmental Laws.  Lessee hereby agrees that (i) no activity will be
conducted on the Leased Premises that will produce any Hazardous Materials; (ii)
the Leased Premises shall not be used for the storage of Hazardous Materials
except in accordance with Environmental Laws; and (iii) no toxic or dangerous
chemicals or Hazardous Materials shall be released or discharged by Lessee or
anyone for whom Lessee is in law responsible on the Leased Premises in excess of
quantities permitted by applicable laws.  If Lessee violates any of the
foregoing covenants, Lessor will provide written notice to Lessee to take
corrective action and Lessee will be given a reasonable period of time to
commence corrective action.  Upon reasonable prior notice to Lessee, Lessor or
Lessor's representative shall have the right, but not the obligation, to enter
the Leased Premises during normal business hours for the purpose of inspecting
the storage, use and disposal of chemicals and materials used in the conduct of
Lessee's business to ensure compliance with the Environmental Laws.  Should it
be determined, in the exercise of Lessor's reasonable discretion, that said
chemicals or materials are being improperly stored, transferred, used, or
disposed of, then Lessee shall immediately take such corrective action as
reasonably requested by Lessor.  Should Lessee fail to commence to take such
corrective action in a prompt manner, Lessor shall have the right to peform such
work and Lessee shall promptly reimburse Lessor for any and all costs associated
with said work.  If at any time during or after the term of the Lease, the
Leased Premises are found to be so contaminated or subject to said conditions,
as a result of matters which occurred on or after the Commencement Date and
which are caused by Lessee, Lessee shall, within a reasonable time period,
diligently institute proper and thorough cleanup procedures at Lessee's sole
cost, and Lessee agrees to indemnify and hold Lessor harmless from all claims,
demands, actions, liabilities, costs, expenses, damages, fines, reimbursement,
restitution and response costs incurred by Lessor in connection therewith, and
the obligations for the foregoing indemnification and the responsibilities of
Lessee shall survive the termination or expiration of this Lease.  Lessor will
provide a complete copy of a Level 1 environmental survey to Lessee within
fifteen (15) days of lease execution.  Lessee shall notify Lessor within fifteen
(15) days of receipt of any objections to the environmental survey.

                                     Article 7

                      CONDITION OF LEASED PREMISES AND REPAIRS

              (a)    Following completion of the Improvements by Lessor as
provided in ARTICLE 1 above, and except as otherwise herein provided, Lessee
agrees, at its sole cost

                                       13
<PAGE>

and expense, to maintain all of the Leased Premises in good condition and
repair during the full term of this Lease (except for such repairs made
necessary by fire or other casualty and which are repaired in accordance with
the provisions of ARTICLE 9 below) and shall deliver the Leased Premises to
Lessor in as good a condition as existed on the date Lessee took possession,
the effects of Latent Defects (hereinafter defined), ordinary wear and tear,
and obsolescence in spite of repairs excepted.  As used herein, the term
"Latent Defects" shall mean any defect in design, materials or workmanship in
the initial construction of the Improvements, the plans and specifications
for same, and/or subsurface soil conditions.  Lessee, at its expense shall
maintain in good condition the structure of the Building including the roof,
foundation, load bearing and exterior walls.  Lessee shall, at its own cost
and expense, keep and maintain in good order and repair (except for any
Latent Defects, ordinary wear and tear, and obsolescence in spite of repairs)
all plumbing, wiring, fixtures, equipment, heating and air conditioning
equipment, interior and exterior decorations, glass and painting in and on
the Building and the parking area and ingress and egress lanes, it being
understood and agreed that Lessor shall have no obligation to maintain the
Leased Premises after Lessee takes possession other than as provided in this
Article 7,  Section 1(i), Article 9, and  Article 16  herein, except such
repairs caused by Lessor's tortious acts or omissions, improper workmanship,
or variance from plans and specifications.

              (b)    Lessor hereby assigns to Lessee all construction or
equipment warranties, guarantees, and/or service policies received by it which
are applicable to the Improvements; provided that such assignment shall not
prevent Lessor from enforcing same for its own benefit in order to perform its
obligations herein.  Lessor hereby represents and warrants to Lessee that, in
addition to any other warranties, Lessor shall obtain a warranty covering the
roof of the Leased Premises for a period of not less than 10 years.

              (c)    In the event Lessee refuses or neglects to commence or to
complete properly and adequately any repairs which are the responsibility of
Lessee hereunder, then Lessor may (but shall not be obligated to) make such
repairs after thirty (30) working days' written notice to Lessee, or such
shorter period required by any emergency.  In such event, Lessee shall be
obligated to repay the cost thereof to Lessor, upon demand, as additional rent.

              (d)    In the event Lessor refuses or neglects to commence or to
complete properly and adequately any repairs which are the responsibility of
Lessor hereunder, Lessee may (but shall not be obligated to) make such repairs
after ten (10) working days' written notice to Lessor, or such shorter period
required by any emergency.  In such event, Lessor shall be obligated to repay
the cost thereof to Lessee, upon demand, or after thirty (30) days' notice to
Lessor of such costs incurred by Lessee, Lessee shall deduct the costs from the
next installments of rent until Lessee is fully compensated.

                                       14
<PAGE>

                                     Article 8

                                  INDEMNIFICATION

              Lessee shall indemnify, defend and hold Lessor harmless from any
and all Claims arising from Lessee's use of the Leased Premises or from the
conduct of its business or from any activity, work or things which may be
permitted or suffered by Lessee on or about the Leased Premises and shall
further indemnify, defend and hold Lessor harmless from and against any and all
Claims arising from any negligence of Lessee or any of its agents, contractors,
employees or invitees and any and all cost, attorney's fees, expenses and
liabilities necessarily incurred in the defense of any Claim or any action or
proceeding brought thereon, but excepting any Claims caused by the intentional
acts or negligence of Lessor, its employees, contractors or agents, or Lessor's
breach of any of its obligations set forth in this Lease.  Lessee hereby assumes
all risk of damage to property or injury to persons in or about the Leased
Premises from any cause, and Lessee hereby waives all Claims in respect thereof
against Lessor, excepting where said damages are caused by the intentional acts
or negligence of Lessor, its employees, contractors or agents, or Lessor's
breach of any of its obligations set forth in this Lease.  "Claims" is hereby
defined to include claims, suits, actions, debts, damages, costs, losses,
obligations, or judgments.

                                     Article 9

                               DAMAGE OR DESTRUCTION

              (a)    Subject to the further provisions of this ARTICLE 9, if
the Improvements are damaged or destroyed (whether partially or totally) by
fire or other casualty or cause whatsoever, Lessor at its sole expense shall
promptly thereafter commence and diligently pursue to completion, the
rebuilding, restoration or repair of the Building and Improvements, in a good
and workmanlike manner, to a state and condition of repair in which their
value is not substantially less than their value immediately prior to the
damage and destruction, and this Lease shall continue in full force and
effect, subject to the abatement provision of SECTION 9(b).

               (b)   If the Improvements are destroyed or damaged and are
repaired or restored pursuant to the provisions of this ARTICLE 9, the monthly
rentals payable hereunder for the period from the date of such destruction or
damage to the date the Building is repaired or restored shall be abated in
proportion to the degree to which the Building is rendered untenantable by
Lessee for its intended purposes.

              (c)    If Lessor shall be obligated or shall elect to repair or
restore the Building under the provision of this ARTICLE 9, but does not
commence such repair or restoration within ninety (90) days after such
obligation shall accrue (except where such delay is not within the reasonable
control of Lessor) or complete such repair or

                                       15
<PAGE>

restoration within one hundred and eighty (180) days after the commencement
thereof (except where such delay is not within the reasonable control of
Lessor), Lessee may at Lessee's option cancel and terminate this Lease as of
the date of the occurrence of such damage by giving Lessor written notice of
Lessee's election to do so at any time after the expiration of such periods
of time and prior to the completion of such restoration work by Lessor.

              (d)    Upon cancellation of this Lease pursuant to this ARTICLE 9,
all rental and other charges due from Lessee shall terminate, Lessor shall
refund to Lessee any prepayments of rent or other charges, and both parties
shall be relieved of all further obligations under this Lease.

                                     Article 10

                                    ALTERATIONS

              (a)    Lessee shall not make, or suffer to be made, any
structural alterations  of or improvements to the Building or the Leased
Premises, or any part thereof, in excess of  $25,000, without the prior
written consent of Lessor, which consent shall not unreasonably be withheld
or delayed.

              (b)    Any equipment or trade fixtures of whatsoever nature as
shall have been installed in the Building by Lessee, whether permanently affixed
or not, shall continue to be the property of Lessee and may, but need not be,
removed by Lessee at the termination of this Lease; provided, however, Lessee
shall at its own expense repair any injury to the Building resulting from any
such removal and shall pay the cost of removing any trade fixtures installed by
Lessee which are not removed by Lessee on or prior to the termination of this
Lease.

              (c)    All alterations and improvements made to the Building under
SECTION 10(a) shall become the property of Lessor upon expiration of this Lease
and need not be removed by Lessee at its expense.

                                     Article 11

                                     UTILITIES

              Lessee shall pay, before delinquency, all charges for water, gas,
electricity, telephone service and all other services and public utilities
furnished to or used in, upon or about the Leased Premises by Lessee during the
term of this Lease.

                                     Article 12

                                    HOLDING OVER

              (a)    Lessee agrees that upon the expiration or termination of
this Lease

                                       16
<PAGE>

(however the same may be brought about), peaceable possession of the Leased
Premises will be promptly surrendered and delivered to Lessor.

              (b)    In case of holding over by Lessee after the termination of
this Lease without the written consent of Lessor (however such termination shall
be brought about), Lessee shall be obligated to pay rent to Lessor on a per diem
basis for the entire hold over period at one hundred fifty percent (150%) of the
rental rate in effect at the time of the termination of this Lease.  In the
event of a holding over by Lessee after the term of this Lease (whether with or
without the written consent of Lessor), Lessee shall be and continue as the
tenant at will of Lessor and in the event of Lessee's failure to surrender,
Lessor shall be entitled to institute and maintain an action of forcible
detainer of the Leased Premises in any court of competent jurisdiction.

                                     Article 13

                                ASSIGNMENT AND SALE

              (a)    In the event Lessee should desire to assign this Lease
or sublet the Leased Premises or any part thereof, Lessee shall give Lessor
written notice of such desire, together with financial information as to the
proposed assignee or sublessee sufficiently complete to allow Lessor to
determine the financial condition of such assignee or sublessee, at least
twenty (20) days in advance of the date on which Lessee desires to make such
assignment or sublease. Lessor shall then have a period of twenty (20) days
following receipt of such notice and financial information within which to
notify Lessee in writing that (i) Lessor consents to such assignment or
sublease, which consent shall not be unreasonably withheld, or delayed, or
(ii) Lessor does not consent thereto provided, however, that Lessee may
without prior written notice and consent from Lessor, assign this Lease or
sublet all or part of the Leased Premises to any entity which controls, is
controlled by, or is under common control with Lessee or any entity which is
a successor to Lessee by acquisition, merger, or consolidation of or with
Lessee.  No assignment or subletting by Lessee shall relieve Lessee of any
obligation under this Lease.  (iii) Upon request by Lessor, Lessee shall
furnish to Lessor copies of its latest consolidated annual report together
with quarterly income statements and balance sheet to date when such reports
and financial statements have been publicly released.

              (b)    Lessor shall have the continuing right at any time to sell
or convey the Leased Premises and Lessor's rights under this Lease, and nothing
herein contained shall be construed as restricting such rights of Lessor.  In
the event Lessor should hereafter sell or convey the Leased Premises to a third
party or parties, such party or parties shall acquire the Leased Premises
subject to the terms and provisions of this Lease and shall be subrogated to all
of the rights and privileges of Lessor hereunder, and Lessor shall thereupon be
completely relieved and discharged from all duties and obligations herein
imposed upon Lessor which accrue after the effective date of such conveyance;
provided that such transferee of Lessor shall have assumed all of Lessor's
duties and obligations which accrue under this Lease after such date.

                                       17
<PAGE>

                                     Article 14

                             INSOLVENCY AND BANKRUPTCY

              It is mutually agreed, covenanted and understood by and between
the parties hereto that in the event any proceeding under the Bankruptcy Code
or any amendment thereto is commenced by or against Lessee, as debtor or in
the event Lessee is adjudged insolvent or makes an assignment for the benefit
of its creditors, or if a writ of attachment or execution is levied on the
leasehold estate created hereby and is not released or satisfied within a
reasonable time thereafter, or if a receiver is appointed in any proceeding
or action to which Lessee is a party as debtor, with authority to take
possession or control of the Leased Premises or the business conducted
therein by Lessee,  subject to the then current bankruptcy and similarly
applicable laws, the same shall be a default by Lessee hereunder and Lessor
shall have the right to exercise its remedies as provided hereafter.

              In the event that the obligations of Lessor under this Lease
are not performed during the pendency of a bankruptcy or insolvency
proceeding involving the Lessor as the debtor, or following the rejection of
this Lease in accordance with Section 365 of the United States Bankruptcy
Code and the election of the Lessee to remain in the possession of the Leased
Premises in a bankruptcy or insolvency proceeding involving the Lessor as the
debtor, then nothwithstanding any provision of  this Lease to the contrary,
Lessee shall have the right to set off against Rents next due and owing under
this Lease (a) any and all damages that it demonstrates to the Bankruptcy
Court were caused by such non-performance of the Lessor's obligations under
this Lease by Lessor, debtor-in-possession, or the bankruptcy trustee and (b)
any and all damages caused by the non-performance of the Lessor's obligations
under this Lease following any rejection of this Lease in accordance with
Section 365 of the United States Bankruptcy Code.

                                     Article 15

                              DEFAULT AND ABANDONMENT

              (a)    If Lessee shall at any time fail to pay when due any
payment of rent or other sums provided for herein to be paid to Lessor, and
such failure continues uncured for a period of ten (10) days after the date
that Lessee receives written notice thereof from Lessor, or if Lessee shall
at any time fail to perform any of the covenants, terms, conditions or
provisions of this Lease (other than the payment of rent or other sums), and
such failure continues uncured for a period of thirty (30) days (or if such
failure cannot with reasonable diligence be cured within thirty (30) days,
then such longer period of time as may be reasonably necessary, provided that
Lessee shall continuously use reasonable diligence in attempting to cure such
failure) after Lessor gives Lessee written notice of such failure, or if
Lessee shall assign or sublet without written approval of Lessor (unless such
approval is not required by the terms of this Lease), Lessor shall have any
one or more of the following described remedies, in

                                       18
<PAGE>

addition to all other rights and remedies provided at law or in equity:

                     (i)  Lessor may terminate this Lease, upon written
notice to Lessee and all of Lessee's rights shall be forfeited and lapsed, as
fully as if this Lease had expired by lapse of time.

                    (ii)  Lessor may terminate Lessee's right of possession
(but not this Lease) and may repossess the Leased Premises by any lawful
means, without further demand or notice any kind to Lessee and without
terminating this Lease, in which event Lessor will use reasonable efforts to
relet the same for the account of Lessee for such rent and upon such terms as
shall be reasonably satisfactory to Lessor.  For the purpose of such
reletting, Lessor is authorized to decorate or to make any repairs, changes
alterations or additions in or to Leased Premises that may be reasonably
necessary.  Such reletting will not be construed as an election on the part
of Lessor to terminate this Lease unless a written notice of such intention
be given Lessee by Lessor.

                                     Article 16

                                   EMINENT DOMAIN

              (a)    If during the term hereof, all or substantially all, of the
Leased Premises, shall be taken in any condemnation or eminent domain
proceeding, this Lease shall thereupon terminate.  In such event the obligation
to pay rent and Lessee's right of possession hereunder shall terminate on the
date of such taking.  Any rent paid in advance shall be apportioned as of the
date of such taking, and Lessee's portion thereof shall be refunded to Lessee.

              (b)    If only a part of the Leased Premises are taken so as to
materially affect the operation of Lessee's business from the Leased Premises
and such effect would continue even though the Leased Premises were restored
by Lessor as hereinafter provided, either party hereto shall have the option
to terminate this Lease as of the date of ouster by giving written notice of
termination within fifteen (15) days after Lessee has been ousted from
possession of such part, whereupon this Lease shall be of no further force or
effect, and Lessor and Lessee shall each be relieved of any obligations or
liabilities hereunder as of said date of ouster.  If this Lease is not
terminated pursuant to the foregoing provisions, Lessor, at its own risk,
expense and liability to Lessee, shall promptly (but only to the extent of
the proceeds of the condemnation award) make such repairs and alterations to
such part of the Leased Premises not taken so as to constitute a complete
building and land site suitable for the uses and purpose for which said
Leased Premises are being utilized by Lessee.  In such event Lessee's right
of possession as to the portion so taken shall terminate on the date of such
taking, and the rental payable hereunder shall be reduced by a just and
proportionate amount to be agreed to by Lessor and Lessee, taking into
consideration the amount of land, and the usable space in the Building and
other improvements remaining after any such taking; but, if so much is taken
as to render the Leased Premises completely untenantable or unsuitable for
the purpose for which they are hereby leased, and neither Lessee nor Lessor
exercises the

                                       19
<PAGE>

option to terminate this Lease as herein provided, all rental payments shall
be suspended until the date of completion by Lessor of such repairs and
alterations.

              (c)    The provisions of this ARTICLE 16 shall only apply to
the Improvements, and in no event shall Lessor be obligated to reconstruct
any improvements constructed by Lessee but Lessor shall pay to Lessee a fair
and equitable portion of the condemnation award in lieu thereof.

              (d)    Any condemnation award or recovery shall belong and be
paid to Lessor, and Lessee shall have no claim thereto except as specified
herein. Lessee reserves the right to bring an action in its own name for its
loss of business and leasehold interest as well as any other damages which
Lessee may recover as a result of such condemnation action.  The provisions
herein shall not be subject to the rights of Lessor's mortgagors to apply
condemnation proceeds to the debt secured by its mortgage.

                                     Article 17

                                 ACCESS TO PREMISES

              Lessee shall permit Lessor and its agents to enter into and upon
the Leased Premises at all reasonable times during normal business hours and
with at least five (5) days written notice, except in an emergency situation, in
accordance with the provisions hereof, for the purpose of making repairs,
alterations, or additions to any other portion of the Leased Premises, including
the erection and maintenance of such scaffolding, canopy, fences and props as
may be required or for the purpose of posting notices of nonliability for
alterations, additions or repairs.  Lessor shall conduct its activities in the
Leased Premises in a manner that will cause the least possible interference with
Lessee's business operations and rent shall ratably abate during the time Lessee
is deprived of use of any portion of the Leased Premises as a result of Lessor's
presence in the Leased Premises.  Lessee shall permit Lessor, at any time within
ninety (90) days prior to the expiration of this Lease, to place upon the Leased
Premises usual or ordinary "For Lease" signs, and during such ninety (90) day
period Lessor or its agents may, during normal business hours, enter upon the
Leased Premises and exhibit same to prospective tenants.

                                     Article 18

                               SUBORDINATION OF LEASE

              Upon Lessor's request, and at Lessor's sole option, Lessee will
subordinate this Lease to the liens of any first mortgage or under first lien
resulting from any method of financing or refinancing except Industrial
Development Bond financing or refinancing (hereinafter collectively referred
to as a "Mortgage") now or hereafter existing against all or part of the
Leased Premises, and to all renewal, modifications, replacements,
consolidations  and extensions thereof; provided that the holder of any such
Mortgage agrees in writing that if the Lessor defaults under such Mortgage,
the

                                       20
<PAGE>

holder shall not disturb Lessee's possession, rights and leasehold interest
hereunder while Lessee is not in default hereunder beyond the time allowed
for curing the same. At any time and from time to time during the Term of
this Lease, within twenty (20) days after Lessee's receipt of a written
request from Lessor or any of Lessor's lenders, Lessee shall execute and
deliver a document, in form and substance reasonably acceptable to Lessee,
Lessor, and any such lender, confirming such subordination and
nondisturbance.  Within ninety (90) days after the date of this Lease, Lessor
shall deliver to Lessee a written nondisturbance agreement from the holder of
any Mortgage executed prior to the Commencement Date in form and substance
reasonably acceptable to Lessee.  In the event of such default by Lessor, or
any foreclosure, sale or other event causing Lessor's ownership of the Leased
Premises to terminate, Lessee shall attorn to the new owner and shall
recognize the new owner as Lessee's Lessor under this Lease. Lessee shall,
upon request of the holder of any such Mortgage, execute and deliver any
instrument reasonably requested by such holder to evidence the subordination,
attornment, and nondisturbance provisions set forth herein. Lessee waives any
right which it might have by law or in equity to terminate this Lease or to
surrender possession of the Leased Premises upon termination of, or
institution of proceedings against, Lessor's rihts of ownership in the Leased
Premises; provided that none of Lessee's rights and interests under this
Lease are disturbed.  The new owner shall recognize Lessee as a direct tenant
under this Lease; provided that Lessee is not in default as would permit
Lessor to terminate this Lease, and that Lessee delivers to the new owner
upon demand an instrument certifying to such effect and confirming the
agreement of Lessee to attorn to the owner.  As herein used, the term
"foreclosure" shall include both judicial proceedings and the exercise of a
power of sale under any mortgage or deed of trust without recourse to
judicial proceedings.

                                     Article 19

                                ESTOPPEL CERTIFICATE

              Lessor and Lessee each hereby agree, at any time and from time to
time within thirty (30) days after requested by the other party, to execute and
deliver to the other party a written certificate stating (a) whether this Lease
is in full force and effect; (b) whether this Lease has been modified or amended
and if so, identifying and describing any such modification or amendment; (c)
whether rent and other charges have been paid more than thirty (30) days in
advance of the date when due and if so that date to which that have been paid in
advance; and (d) whether, to the knowledge of the party giving the certificate,
any uncured default exists on the part of the other party, and, if so,
specifying the nature of such default.

                                     Article 20

                                       WAIVER

              No covenant or condition of this Lease to be performed by
Lessee and/or Lessor can be waived except by the written consent of Lessor
and/or Lessee, and

                                       21
<PAGE>

forbearance or indulgence by Lessor or Lessee in any regard whatsoever shall
not constitute a waiver of the covenant or condition to be performed by
Lessee and/or Lessor to which the same may apply; and until complete
performance by Lessee or Lessor of said covenant or condition, Lessor and/or
Lessee shall be entitled to invoke any remedy available to it under this
Lease or at law, despite said forbearance or indulgence.  The subsequent
acceptance of rental hereunder by Lessor shall not be deemed to be a waiver
of any preceding breach by Lessee of any term, covenant or condition of this
Lease, other than the failure of Lessee to pay the particular rental so
accepted, regardless of Lessor's knowledge of such preceding breach at the
time of acceptance of such rental.

                                     Article 21

                                  QUIET ENJOYMENT

              Lessor agrees that so long as Lessee is not in default
hereunder Lessee shall have the quiet enjoyment of the Leased Premises
without hindrance on the part of Lessor, and Lessor will defend Lessee in the
peaceful and quiet enjoyment of the Leased Premises (other than those
claiming by, through, or under Lessee).

                                     Article 22

                             ATTORNEY FEES AND INTEREST

              (a)    In the event either party hereto shall institute suit
against the other with reference to the terms and conditions of this Lease,
the prevailing party shall be entitled to reasonable attorney's fees and
court costs.

              (b)   All sums due from one party to the other party hereunder
which are not paid when due shall bear interest at the lesser of ten percent
(10%) per annum or the national prime interest rate plus two percent (2%) per
annum from the date same became due until paid.

                                     Article 23

                                       SIGNS

              Lessee shall have the right to install, maintain and replace
exterior signs in or on the Leased premises subject to any applicable laws,
codes or ordinances and subject to any reasonable rules and regulations
adopted for the Leased Premises.  Lessee shall make all repairs required by
reason of the installation and maintenance of its signs, except damage caused
by the acts of Lessor, its agents, servants or employees.

                                     Article 24

                                 SERVICE OF NOTICE

                                       22
<PAGE>

              Any notice or demand which either party hereby may desire to
serve upon the other in furtherance of any provisions of this Lease shall be
in writing and shall be sufficiently served if the same shall be sent by
Federal Express or other overnight courier service, or shall be sent United
States Mail, postage prepaid, certified or registered, or shall be sent by
facsimile transmission, addressed, in the instance of Lessor, as follows:

                            VRS/TA/S Houston, L.P.
                            520 Post Oak Blvd., Suite 320
                            Houston, Texas  77027
                            (Fax) 713-963-8079

or to such other address as Lessor shall designate by written notice to Lessee,
and in the instance of Lessee, addressed as follows:

                            United Stationers Supply Co.
                            2200 East Golf Road
                            Des Plaines, Illinois 60016-1267
                            Attention:  President
                            (Fax) 847-699-8046

or such other address as Lessee shall designate by written notice to Lessor.

Such notices shall be deemed to have been served at the time of the actual
receipt or refusal of delivery thereof.

                                     Article 25

                                      CAPTIONS

              The various headings and numbers herein and the grouping of the
provisions of this Lease into separate articles and paragraphs are for the
purpose of convenience only and shall not be considered a part hereof.

                                     Article 26

                                        TIME

              Time is of the essence of this Lease and each and all of its
provisions.

                                     Article 27

                               SUCCESSORS AND ASSIGNS

              This Lease shall inure to the benefit of and be binding upon the
heirs,

                                       23
<PAGE>

executors, administrators, successors and assigns of Lessor and Lessee;
provided, however, that nothing herein shall impair any of the provisions
herein above set forth inhibiting assignment or subletting without the
written consent of Lessor.

                                     Article 28

                                 PARTIAL INVALIDITY

              If any term, covenant, condition or provision of this Lease or
the application thereof to any person or circumstance shall, to any extent,
be invalid or unenforceable, the remainder of this Lease shall not be
affected thereby and each term, covenant, condition and provision of this
Lease shall be valid and be enforced to the fullest extent permitted by law.

                                     Article 29

                                      CONSENT

              Whenever the consent of either Lessor or Lessee must be
obtained hereunder, such consent shall not be unreasonably withheld or
delayed.

                                     Article 30

                                   FORCE MAJEURE

              (a)    Whenever Lessor or Lessee shall be required hereunder or
by law to perform or provide any contract, act, work, labor or service, or to
perform or comply with any law, order, ordinance, or building, zoning or
other regulations, requirements, or rule of any governmental authority having
jurisdiction, or to perform any covenant hereunder (other than the payment of
any sum of money) such party shall not be deemed in default therein and the
other party hereto shall not enforce or exercise any of its rights hereunder
if and so long as:

              (i)    Non-performance or default therein shall be caused by
strikes, lockouts, non-availability of labor or materials, war or national
defense, governmental restrictions, acts of God or other such unforeseeable
events or circumstances beyond the control of such party; and

              (ii)   To the extent applicable and reasonable, such party
shall contest the matter involved with due diligence and in good faith in a
proper forum or court with the person or governmental authority requiring
such payment, act, work, labor, services, contract or lien.

              (b)    The foregoing provision of this ARTICLE 30 shall not
apply to the payment by Lessee to Lessor of rent or any other monetary sums
due by Lessee

                                       24
<PAGE>

hereunder or to any of Lessor's obligations under ARTICLE 1 of this Lease.

                                     Article 31

                                     ALTERATION

              This Lease shall not be altered, amended, or modified in any
way or terminated except by an instrument in writing, executed by both
parties.

                                     Article 32

                              PERSONAL PROPERTY TAXES

              During the term hereof, Lessee shall pay prior to delinquency
all taxes assessed against and levied upon fixtures, furnishings, equipment
and all other personal property of Lessee contained in the Leased Premises;
and, when possible, Lessee shall cause said fixtures, furnishings, equipment
and other personal property to be assessed and billed separately from the
Leased Premises.

                                     Article 33

                                 LEGAL CONSTRUCTION

This Agreement shall be construed in accordance with the laws of the State of
Texas.

                                     Article 34

                              LIMITATION OF LIABILITY

              Neither party shall ever be liable for consequential or
punitive damage in connection with any of its obligations hereunder.

                                     Article 35

                                     NET LEASE

              This Lease is a net lease, and except as otherwise expressly
provided herein, Lessee shall pay all costs and other expenses of every
character, foreseen or unforeseen, for the payment of which Lessee is or shall
become liable by reason of its estate or interest in the Leased Premises, or
which are connected with or arise out of the possession, use, occupancy,
maintenance or repair of the Leased Premises or any portion thereof by Lessee.
Rent and any and all other amounts payable by Lessee hereunder shall

                                       25
<PAGE>

be paid by Lessee without notice or demand (except as herein otherwise
provided), and without any set off, deduction, abatement, suspension,
deferment, diminution or reduction of any kind for any reason, except as
specifically provided herein.

                                     Article 36

                     LIMITATION OF LESSOR'S PERSONAL LIABILITY

              Notwithstanding any other provision in this Lease to the
contrary, Lessee specifically agrees to look solely to Lessor's interest in
the Leased Premises and in this Lease for the recovery of any judgment from
Lessor, it being agreed that Lessor shall never be personally liable for any
such judgment.

                                     Article 37

                         COMPLIANCE WITH ENVIRONMENTAL LAWS

              (a)    Lessor warrants and represents to Lessee that, to the
best of Lessor's knowledge and after reasonable inquiry, the Leased Premises
will be in full compliance at the date of delivery to Lessee with all
applicable Environmental Laws.

              (b)    Lessor shall defend, indemnify and save Lessee, its
officers, directors, agents and employees, harmless from and against all
claims, obligations, demands, actions, proceedings and judgments, loss,
damage, liability and expense (including reasonable attorney's fees and
expenses) which any one or more of them may sustain in connection with any
noncompliance of the Leased Premises as of the Commencement Date with all
Environmental Laws or in connection with any environmental condition
affecting the Leased Premises not caused by Lessee.

                                     Article 38

                      LESSOR'S REPRESENTATIONS AND WARRANTIES

              Lessor will represent and warrant to Lessee, as of the
Commencement Date, that to the best of its knowledge:

              (a)    Lessor does not have knowledge of, or reason to believe
that there are grounds for, the filing of a lien against the Leased Premises,
other than the lien for the construction loan.

              (b)    Lessor does not have knowledge of any pending condemnation
or similar proceeding affecting the Leased Premises or any portion thereof.

              (c)    Lessor does not have knowledge of any legal actions, suits,
or other legal or administrative proceedings, pending or threatened against the
Leased Premises or Lessor nor that any such action, suit, proceeding or claim
has been threatened

                                       26
<PAGE>

or asserted against Lessor or the Leased Premises.

              (d)    Lessor has granted no leases or license, nor created any
tenancies, affecting the Leased Premises and there are no parties in possession
of any portion of the Leased Premises as trespassers or otherwise.

              (e)    Lessor does not have knowledge of any uncured violations of
federal, state or municipal laws, ordinances, orders, regulations, or
requirements affecting any portion of the Leased Premises.

              (f)    The Leased Premises have adequate legal access to abutting
public highways, streets and roads.

              (g)    Lessor does not have knowledge of any pending or threatened
governmental or private proceedings which would impair or result in the
termination of access from the Leased Premises to abutting public highways,
streets and roads.

              (h)    Lessor does not have knowledge of, or reason to believe
that there are (i) any government agencies investigating the Leased Premises,
(ii) any environmental defects affecting the Leased Premises or property, (iii)
radon or radon decay products, asbestos or asbestos decay products, within the
Building or (iv) mines or other subsurface conditions which would have a
materially adverse effect on the Leased Premises.

              (i)    Lessor does not have knowledge that the Leased Premises
or any adjacent property now are or have been the site of any place of
business engaged in operations which involve the generation, manufacture,
refining, transportation, treatment, storage, handling or disposal of any
Hazardous Materials, above or below ground.

              (j)    There is presently in existence or available adequate
water, electrical, sewage, stormwater and drainage systems, and gas utility
service required for the intended use of the Leased Premises.

              (k)    The intended use and occupancy of the Leased Premises are
in full compliance with all requirements of applicable building, zoning and land
development ordinances and all conditions of applicable planning board
subdivision, site plan and variance (if any) approvals.

              (l)    Lessor has obtained or will obtain all required plan
approvals, permits and certificates of occupancy necessary for Lessee's
occupancy and intended use.

              (m)    Lessor has no knowledge, or reason to believe that there
are underground storage tanks located on the Leased Premises, nor have there
been any in the past.

                                       27
<PAGE>

                                   Article 39

                           OWNERSHIP OF LEASED PREMISES

              Lessor represents and warrants that, upon acquisition of title
to the Leased Premises by Lessor, there shall be no reservations, easements,
building lines, covenants, restrictions, encumbrances or other objections or
exceptions to good and marketable title that would prevent or impair either
the timely construction of the Improvements in accordance with the
Construction Documents approved by Lessee, or the use thereof as contemplated
by Lessee.  Immediately upon acquiring title to the site Lessor shall furnish
Lessee a copy of the title policy showing title in Lessor.  If it is
determined that Lessor and/or its assigns does not have good and clear title
to the Leased Premises at any time after commencement of construction Lessee
may terminate this Agreement by giving Lessor written notice of its election
to terminate, whereupon Lessee shall have no further obligation to Lessor
under this Lease.

                                     Article 40

                     COMPLIANCE WITH PUBLIC ACCOMMODATION LAWS

              (a)    Lessor represents, warrants and covenants that, upon the
Commencement Date, the Leased Premises will comply with all applicable laws,
regulations, and building codes, including, without limitation, all laws
governing non discrimination in public accommodations and commercial
facilities, including, without limitation, the requirements of the Americans
with Disabilities Act and all regulations thereunder.

              (b)    Lessor agrees to indemnify, defend and hold harmless
Lessee, its officers, directors and employees from and against any and all
claims, liabilities, losses and expenses (including reasonable attorney's
fees) arising in connection with Lessor's failure to comply with the
provisions of this Article, save and except the continued negligence of
Lessee.

                                       28
<PAGE>

              EXECUTED as of the date set forth hereinabove.

LESSOR:

VRS/TA/S Houston, L.P.
A Texas limited partnership
By:    VRS/TA Realty Corp.  (its general partner)
By:    /s/ [Iillegible]
   ---------------------------
Its:   Sr. Vice President
    --------------------------
LESSEE:

United Stationers Supply Co.
An Illinois Corporation

By:  /s/ James A. Pribel
   ----------------------------
Its:  Treasurer & Secretary
    ---------------------------

                                       29
<PAGE>

                                    EXHIBIT A

METES AND BOUNDS DESCRIPTION OF 9.6737 ACRES OR 421,387 SQUARE FEET OF LAND
OUT OF THAT CERTAIN 21.873-ACRE TRACT BEING ALL OF UNRESTRICTED RESREVE "A",
NORTHWEST PLACE, A SUBDIVISION RECORDED IN VOLUME 302, PAGE 16, HARRIS COUNTY
MAP RECORDS (H.C.M.R.) IN THE W. C. WALLACE SURVEY, A-848, CITY OF HOUSTON,
HARRIS COUNTY, TEXAS:

BEGINNING: AT A FOUND "X" CUT IN CONCRETE IN THE SOUTH LINE OF PINEMONT
DRIVE, AN 80-FOOT RIGHT-OF-WAY, MARKING THE NORTHWEST CORNER OF SAID RESERVE
"A", SAID "X" BEING THE 10-FOOT SETBACK CORNER OF THE EAST LINE OF HOLLISTER
ROAD, A 100-FOOT RIGHT-OF-WAY;

THENCE: NORTH 87 DEG 36 MIN 10 SEC EAST, ALONG THE SOUTH LINE OF PINEMONT
DRIVE, A DISTANCE OF 607.00 FEET TO A SET 5/8-INCH IRON ROD MARKING THE
NORTHEAST CORNER OF THE HEREIN DESCRIBED TRACT;

THENCE: SOUTH 02 DEG 23 MIN 50 SEC EAST, DEPARTING FROM THE SOUTH LINE OF
PINEMONT DRIVE A DISTANCE OF 682.58 FEET TO A SET 5/8-INCH IRON ROD IN THE
NORTH LINE OF LANGTRY STREET, A 60-FOOT RIGHT-OF-WAY MAKING THE SOUTHEAST
CORNER OF THE HEREIN DESCRIBED TRACT;

THENCE: SOUTH 87 DEG 57 MIN 34 SEC WEST, ALONG THE NORTH LINE OF LANGTRY
STREET, A DISTANCE OF 613.97 FEET TO A FOUND 5/8-INCH IRON ROD MARKING THE
MOST SOUTHERLY SOUTHWEST CORNER OF SAID RESERVE "A" AND THE HEREIN DESCRIBED
TRACT, SAID 5/8-INCH IRON ROD BEING THE 10-FOOT SETBACK CORNER OF THE EAST
LINE OF HOLLISTER ROAD;

THENCE: NORTH 45 DEG 42 MIN 19 SEC WEST, A DISTANCE OF 13.82 FEET TO A FOUND
5/8-INCH IRON ROD IN THE EAST LINE OF HOLLISTER ROAD, SAID 5/8-INCH IRON ROD
BEING IN THE LEFT;

THENCE: ALONG THE EAST LINE OF HOLLISTER ROAD, IN A NORTHEASTERLY DIRECTION,
AROUND A CURVE TO THE LEFT WHOSE RADIUS EQUALS 2,350.00 FEET, HAVING A
CENTRAL ANGLE OF 02 DEG 33 MIN 39 SEC, AN ARC LENGTH OF 105.04 FEET, A CHORD
BEARING OF NORTH 00 DEG 45 MIN 59 SEC EAST AND A DISTANCE OF 105.03 FEET TO A
FOUND 5/8-INCH IRON ROD, THE POINT OF TANGENCY OF THE CURVE;

THENCE: NORTH 02 DEG 02 MIN 49 SEC WEST, ALONG THE EAST LINE OF HOLLISTER
ROAD, A DISTANCE OF 553.73 FEET TO A FOUND "X" CUT IN CONCRETE, MARKING THE
MOST WESTERLY NORTHWEST CORNER OF SAID RESERVE "A" AND THE HEREIN DESCRIBED
TRACT;

THENCE: NORTH 42 DEG 46 MIN 14 SEC EAST, A DISTANCE OF 14.19 FEET TO THE
PLACE OF BEGINNING AND CONTAINING 9.6737 ACRES OR 421,387 SQUARE FEET OF
LAND, MORE OR LESS.
<PAGE>

Exhibit B

Blueprint of office building appears here.

<PAGE>

                                   EXHIBIT "B"

IMPROVEMENT SPECIFICATIONS

Our proposal is based on the initial construction of a 240,000 square foot
facility on a 9.56 square acre site. Parking will be provided for 80 cars.
The proposed building will have 8,000 square feet of office area. Further, as
the enclosed site plan indicates, the building is a rear loading facility
with a 130' truck court. Although the building is designed to be cost
efficient it will appropriately present the image of a significant facility
for United Stationers, Inc. Please review the following construction features:

EARTH WORK

We will strip the site to a depth of 4" with strippings hauled off-site if
they are not used for back fill of curbs and/or top soil at landscaped areas.
Subgrade at concrete paving is assumed to be an average excavation of 6" to
9", which is to be relocated and compacted within the building pad. The
building pad will require approximately 2"-0" of off-site select fill
material (minimum 20 P.I.) and compacted in 8" lifts to create a 48" dock
height.

SITE WORK

We will pour the sidewalks to be 4-1/2" thick 3,000 PSI concrete reinforced
with 10-gauge wire mesh and a broom finish. The car parking will be 5" thick
3,000 PSI concrete reinforced with one (1) layer of No.3 rebar at 18" on
center each direction with a broom finish. The truck court and outside
storage area shall be 6" thick 3,000 PSI concrete also reinforced with one
(1) layer of No.3 rebar at 18" on center each direction with a broom finish.
All paved areas will have sealed joints at an average spacing of 30'-0" on
center. Car parking, drives, and the East elevation of the truck court shall
receive a 6" machine extruded, cast-on type curb with reinforcing steel.

Storm drainage shall be underground plastic and concrete pipe for all paved
surfaces.

BUILDING CONCRETE AND STRUCTURE

The foundation will consist of drilled under-ream footings. The warehouse
slab shall be 6" thick 3,000 PSI concrete with one (1) layer of No.4 rebar at
16" on center in each direction with a smooth trowel finish. The slab area is
to receive one (1) coat of Lapidolith floor hardener. The slab will be
leveled to a standard of FF-50. All slabs to be placed with a 1/8" wide saw
cut control joint placed at 20'-0" centers in each direction. The office slab
shall be 6" thick 3,000 PSI concrete with one (1) layer of No.4 rebar at 16"
on center in each direction with a smooth trowel finish.

The roof framing will consist of structural steel columns, joist girders and
bar joists. Warehouse column spacing shall be 40'-0"x40'-0. The warehouse
roof structure will provide a minimum clear height of 30'.

<PAGE>

Improvement Specifications
Page 2

There will be a 22 gauge galvanized roof deck covered with 1" rigid
insulation board. The board will be covered with two base sheets and hot
asphalt and these two sheets will be covered with a .060 mil thick modified
bituminous cap sheet set in hot asphalt. The resulting roof has a 15 year
warranty and is 20 year bondable if so desired.

Roof drainage has been designed to drain front and rear of the warehouse to
surface mounted gutters and recessed downspouts.

The windows are punched type, 8'-0" x 6'-0" with sloped concrete sill and jam
with glass set in aluminum frames. The main entry shall receive one (1) pair
of 3'-0" x 9'-0" doors. All aluminum is designed to be clear or black with
bronze or gray non-reflective glass. The warehouse area shall receive seventy
five (75) 4'-0' x 4'-0" skylights.

All of the exterior tiltwall panels will be approximately 15'-0" wide with
3,000 PSI standard gray concrete reinforcing bars necessary for in-service
use. The panels will be load bearing job cast with thickness as designed by
the structural engineer.

All surfaces of exterior tiltwall panels shall receive a medium textured flat
latex with reveal pattern.

The exterior door and dock equipment are as follows:

            6 EACH       -      3' x 7' hollow metal doors and frames
           30 EACH       -      9' x 10' nominal 24-gauge sectional overhead
                                door
           28 EACH       -      3,000 pound capacity mechanical edge-of-dock
                                levelers

The special equipment is as follows:

         EYE WASH          -   Included in office finish allowance
         WATER FOUNTAIN    -   Included in office allowance
         INTERIOR LADDER   -   An interior roof ladder will be provided from
                               the slab to the roof deck

OFFICE INTERIORS

The development of 8,000 square feet of office area is included within the
scope of this proposal at a cost of $30.00 per square foot. This allowance is
to include the separation wall between the warehouse and office areas. If we
are selected as the developer for this project it is our team's intention to
work closely with United Stationers, Inc. in designing the most functional
and cost efficient office layout possible.

<PAGE>

Improvements Specifications
Page 3

FIRE SPRINKLER SYSTEM

The sprinkler system will be a ESFR system for class 4 ordinary hazard with
28 foot storage height.

PLUMBING

The domestic water service will be a 2-1/2" Type-K copper underground service
extending from a 2" water meter. The sanitary sewer has been designed to be
PVC material with a 6" line connecting the existing sanitary manhole to the
building with clean-out spacings per the City of Houston requirements.
Interior plumbing is provided within the office finish allowance.

Four (4) hose bibs will be provided and located as determined.

HEATING, VENTILATION AND AIR CONDITIONING

1.       OFFICE

         The HVAC cost is included within the office finish allowance. It is
         our intention to have the system consist of bottom discharge,
         summer/winter, DX rooftop package units. Air distribution will be
         through ducted supply systems with ducted return. Ductwork will be
         1" thick fiberglass duct board. All rooftop units shall be provided
         with insulated factory curbs.

2.       WAREHOUSE

         Six air changes per hour will be achieved through roof fans with fixed
         in-take wall louvers with bird screens. Heating will provide freeze
         protection of the fire sprinkler system.

ELECTRICAL

The building service will consist of 2,000 amp overhead service to a location
on the East elevation behind the office section.

         SITE LIGHTING

         400 watt wall pack lighting units at 75 feet on center located on the
         front and back of the building.

<PAGE>

Improvement Specifications
Page 4

         WAREHOUSE LIGHTING

         400 watt metal halide fixtures are provided for an average
         illumination of thirty foot-candles.

         OFFICE LIGHTING

         Cost to be included within the office finish allowance and designed
         accordingly.<PAGE>

                                                                  EXHIBIT 10.36

                                LEASE AGREEMENT

THIS LEASE AGREEMENT is made and entered into by and between VALLEY VIEW
BUSINESS CENTER, LTD., A TEXAS LIMITED PARTNERSHIP(hereinafter called
"Landlord"), and UNITED STATIONERS SUPPLY CO., an Illinois corporation
(hereinafter called "Tenant").

                              W I T N E S S E T H:

       Landlord, for and in consideration of the covenants of Tenant herein
contained, and subject to the terms, provisions and conditions hereinafter set
forth, hereby leases, demises and lets unto Tenant, and Tenant hereby leases and
takes from Landlord, that certain approximate 18.55 acre tract or parcel of land
situated in Dallas County, Texas, as described in EXHIBIT "A" attached hereto
and made a part hereof (the "Land"), together with and including the Building
(hereinafter defined) and the other Improvements (hereinafter defined) to be
constructed by Landlord on the Land pursuant to the Construction Documents
(hereinafter defined), and any other improvements constructed by or on behalf of
Landlord on the Land.  The Land, the Building and the Improvements of which the
Building is a part and all other improvements made by Landlord on or to the Land
from time to time are collectively referred to herein  as the "Leased Premises".

       TO HAVE AND TO HOLD the said Leased Premises unto the said Tenant,
together with the non-exclusive use of all rights, privileges, easements,
appurtenances, and amenities belonging to or in any way pertaining to the Land,
for and during the Term (hereinafter defined) and in accordance with the terms,
provisions and conditions set forth below.

       Wherever and as often as the words this "Agreement" or this "Lease" are
used or appear in this instrument, the same shall mean and refer to this
instrument, and all exhibits hereto and all plans, drawings and specifications
identified herein and any amendments to the same.  All references in this Lease
to "the date hereof" or "the date of this Lease" or similar references shall be
deemed to refer to the last date, in point of time, on which all parties hereto
have executed this Lease.

                                     ARTICLE 1

                      CONSTRUCTION OF IMPROVEMENTS BY LANDLORD

       (a)    CONSTRUCTION DOCUMENTS. Landlord will construct on the Land a
warehouse distribution center containing a total of approximately 400,000 square
feet of space, inclusive of approximately 15,000 square feet of office space
(the "Building"), together with adjacent outdoor surface parking consisting of
not less than 225 spaces, and the landscaping and other improvements, if any,
located outside of the Building on the Land, pursuant to the plans and
specifications described on EXHIBIT "B" and made a part hereof for all purposes
(the "Construction Documents").  The Building and such other improvements as are
contemplated by the Construction Documents are collectively referred to herein
as the "Improvements".  The Site Plan attached hereto as EXHIBIT "C" and made a
part hereof for all purposes is a general illustration of the Land and the
contemplated Building.

                                       1
<PAGE>

       (b)    CONSTRUCTION SCHEDULE. A construction schedule for the
Improvements showing the time periods estimated by Landlord for the completion
of the major phases of the Improvements is attached hereto as EXHIBIT "G" (the
"Construction Schedule").  Landlord shall make a good faith effort to advise
Tenant as soon as reasonably possible if Landlord determines that Landlord's
actual progress in completing any phase of the Improvements is behind the time
periods set forth on the Construction Schedule in any material way. The general
contractor for the Improvements selected by Landlord and approved by Tenant is
Rogers O'Brien Construction Company (the "Contractor"). If Landlord determines
that it is necessary or desirable to find a substitute general contractor,
Landlord shall have the right to dismiss Contractor and select an appropriate
substitute, which selection shall be subject to the approval of Tenant, which
approval shall not be unreasonably withheld or delayed. All of the construction
work shall be carried out by Contractor under the sole direction of Landlord.

       (c)    COMPLETION DATE. Subject to the terms of this Lease, on or before
August 30, 1999 (which date is referred to herein as the "Construction Date"),
Landlord shall, at Landlord's sole cost and expense, commence the on-site
physical construction of the Improvements on the Land.  Such commencement will
be deemed to have occurred upon Landlord beginning earth-grading work on the
Land.  From and after the Construction Date, Landlord shall endeavor to cause
Substantial Completion (hereinafter defined) of the Improvements in accordance
with the Construction Documents to occur on or before April 1, 2000 (the "Target
Completion Date").  Additionally, Landlord agrees to endeavor to complete the
Improvements to a stage sufficient to allow Tenant to commence Tenant's Work
(hereinafter defined) no later than December 22, 1999.  If Landlord has not
caused Substantial Completion of the Improvements to occur on or before June 15,
2000 (the "Outside Completion Date") for any reason other than a Tenant Delay
(hereinafter defined), or an event of Force Majeure (hereinafter defined),
Tenant shall receive an abatement of one (1) day of Base Rent (hereinafter
defined) for each day beyond the Outside Completion Date it takes for Landlord
to achieve Substantial Completion, as Tenant's sole and exclusive remedy.

       (d)    SUBSTANTIAL COMPLETION. "Substantial Completion" of the
Improvement shall not have occurred until (i) Landlord's architect, Halff &
Associates (the "Architect") shall have delivered to Landlord and Tenant a
written certificate stating that all of the Improvements have been substantially
completed in substantial accordance with the Construction Documents, except for
the Punch List Items; and (ii) a certificate of occupancy has been issued
allowing Tenant to occupy and use the Leased Premises; provided, however, that
if the reason that a certificate of occupancy has not or cannot be issued is (A)
because of work yet to be performed by Tenant (E.G., Tenant's Work (hereinafter
defined)), or (B) due to Tenant Delays, then the failure or inability to obtain
a certificate of occupancy shall not delay or prevent the occurrence of
Substantial Completion .  The term "Punch List Items" shall mean details of
construction, decoration, and mechanical adjustment which are part of the
Improvements and which in the aggregate, are minor in character and do not
materially interfere with the Tenant's use or enjoyment of the Leased Premises.
Landlord shall give Tenant not less than ten (10) days notice of the date upon
which Landlord estimates Substantial Completion to be achieved. Upon receipt of
Landlord's notification, Tenant shall verbally notify Landlord of the date
Tenant intends to make a walk-through inspection of the Leased Premises, such
date to be on the date specified in Landlord's notice for the estimated
occurrence of Substantial Completion. The Architect, the Contractor, Landlord's
project representative and Tenant's project representative shall meet to review
and approve of the matters to be included as Punch List Items, which approvals
shall not

                                       2
<PAGE>

be unreasonably withheld. Punch List Items shall be completed by Landlord at
Landlord's expense. Landlord shall use its best efforts to complete all of
the Punch List Items within thirty (30) days after the occurrence of
Substantial Completion.  At the conclusion of the walk-through inspection,
Tenant will be deemed to have acknowledged that, subject only to Landlord's
completion of the Punch List Items, (i) it has inspected and accepts the
Leased Premises, (ii) the Leased Premises is suitable for the purpose for
which it is leased, (iii) the Leased Premises is in good and satisfactory
condition, and (iv) no representations as to the repair of the Leased
Premises, nor promises to alter, remodel or improve the Leased Premises which
have been made by Landlord remain unsatisfied.  At the conclusion of the
walk-through inspection Tenant further agrees to execute an Acceptance of
Leased Premises Memorandum in the form attached hereto and made a part hereof
as EXHIBIT "D", whereupon possession of the Leased Premises will be delivered
to Tenant and Tenant will be deemed to have accepted the Leased Premises, and
Tenant may thereafter occupy the Leased Premises.  Tenant's failure to
conduct a walk-through inspection or execute the Acceptance of Leased
Premises Memorandum will not delay the occurrence of the Commencement Date.

       (e)    CHANGE ORDERS: Tenant may, from time to time prior to the
occurrence of Substantial Completion, submit to Landlord any written requests
for changes or additions to the Construction Documents and/or the Improvements
desired by the Tenant in such detail as Landlord may reasonably require (each a
"Change Order"), which changes or additions shall be subject to Landlord's
approval, which approval shall not be unreasonably withheld or delayed.  Such
approval shall include Landlord's written notice to Tenant of (i) the net
increase, if any, in the actual out-of-pocket cost to be incurred by Landlord in
completing the work associated with the Change Order including the preparation
of plans therefor (the "Change Cost"), and (ii) the anticipated delays, if any,
in completing the work as a result of such Change Order, including the
processing and permitting thereof (the "Change Delay"). Within five (5) business
days after Tenant's receipt of such notice, Tenant shall give to Landlord
written notice to proceed or not to proceed with the Change Order. Tenant's
notice to proceed with the Change Order shall include a specific written
agreement from Tenant to pay to Landlord the Change Cost and written
confirmation of Tenant's acceptance of the Change Delay.  Following the required
approvals and subject thereto (Landlord shall not be required to implement
Change Orders if necessary approvals and permits cannot be obtained), upon
Tenant's written acceptance of any such Change Order, Landlord shall promptly
revise the Construction Documents to incorporate the Change Order and shall
proceed to complete the Improvements in accordance with the Change Order.  Any
and all Change Costs up to a total amount of $300,000 shall, at Tenant's option
exercised by written notice to Landlord included in Tenant's notice to proceed
with the work contemplated by the Change Order, (i) be paid by Tenant within
fifteen (15) days after the occurrence of Substantial Completion and written
demand by Landlord accompanied by substantiating documentation, or (ii) be
initially paid by Landlord and shall be charged back to Tenant as an adjustment
to Base Rent (hereinafter defined).  In the case of (ii), the annual adjustment
to Base Rent shall be the total Change Cost  (up to a maximum of $300,000)
multiplied by ten and one-half percent (10.50%).  If Tenant fails to provide
written notice of its election as provided above, Landlord shall have the
option, exercisable by written notice to Tenant prior to the occurrence of
Substantial Completion, to elect repayment under (i) or (ii) above, and if
Landlord fails to give such written notice, Landlord shall be deemed to have
elected option (i) above.  Tenant shall pay total Change Costs in excess of
$300,000 as follows: (A) fifty percent (50%) of the Change Cost shall be paid to
Landlord upon approval of the applicable Change Order, and (B) the balance shall
be paid within fifteen (15) days after the occurrence of Substantial Completion
and written

                                       3
<PAGE>

demand by Landlord.  Any disagreements between Landlord and Tenant regarding
the calculation of any Change Costs shall be resolved in accordance with the
procedures set forth in Article l(m) of this Lease.

       (f)    CONSTRUCTION COSTS.   Subject to the terms of this paragraph,
Landlord will (i) pay the cost of the Building and all other improvements other
than the Finish Work (hereinafter defined) for the office portion of the
Building, and (ii) the cost of the Finish Work up to, but not in excess of the
sum of $525,000 (the "Finish Allowance").  The "Finish Work" is the work to be
performed by Landlord pursuant to the specific Construction Documents identified
on EXHIBIT "H" attached hereto and made a part hereof.  Notwithstanding the
preceding, Tenant will be responsible for the following costs of completing the
Improvements:

              (1)    All Change Costs (as set forth above);

              (2)    The cost of the Finish Work in excess of the Finish
       Allowance.  If Landlord determines that the actual cost of the Finish
       Work will exceed the Finish Allowance, or if during construction the
       actual cost of the Finish Work exceeds the Finish Allowance, Landlord
       will not be obligated to commence the Finish Work or continue its
       construction until it receives from Tenant fifty percent (50%) of the
       estimated cost of such amount as is in excess, in Landlord's estimation,
       of the Finish Allowance, with the actual amount of such excess, less the
       initial payment by Tenant, being due upon Substantial Completion.

              (3)    The cost of  Tenant specified electrical distribution not
       included in the Construction Documents in excess of $125,000.  Such
       excess, if any, shall be determined through Change Order and paid by
       Tenant in the same manner as for the cost of Finish Work in excess of the
       Finish Allowance; and

              (4)    All costs, expenses and damages incurred or suffered by
       Landlord that are caused by Tenant Delays.

       (g)    LANDLORD'S WARRANTY. In addition to (and not in lieu of)
Landlord's obligations under the Lease with respect to repairs, Landlord
covenants to construct the Improvements in a good and workmanlike manner and in
accordance with all Applicable Laws (hereinafter defined). Without limitation,
Landlord represents, warrants and covenants that upon the Commencement Date, the
Improvements will comply with all Applicable Laws including, without limitation,
all laws governing non-discrimination in public accommodations and commercial
facilities, including, without limitation, the requirements of the Americans
with Disabilities Act and all regulations thereunder. Landlord further warrants
that the Improvements will be free from defects in workmanship and materials for
a period of one (1) year after the date of Substantial Completion. If, at any
time during such warranty period, any of the workmanship or material used in the
construction of the Improvements are determined to be defective, and Tenant
shall, within the warranty period, so notify Landlord in writing that such
workmanship or material is defective, Landlord shall cause such defective
workmanship or material to be corrected, repaired, or replaced in a manner
reasonably acceptable to both Landlord and Tenant. Such correction, repair, or
replacement shall be performed by Landlord, at Landlord's expense, as promptly
as reasonably possible and in such manner so as to minimize any interference
with Tenant in its operations in and about the Leased Premises. If Landlord
fails to correct any such

                                       4
<PAGE>

defect within fifteen (15) days after receipt of written notice from Tenant,
or such longer period as is reasonably required, then Tenant may (but shall
not be obligated to) correct such defect and Landlord shall reimburse Tenant
for the actual cost thereof.  Landlord's liability for breach of any
covenant, representation or warranty set forth in this subparagraph shall
finally and automatically expire on the first (1st) anniversary of the
Commencement Date.

       (h)    INSPECTIONS. Landlord, through its appointed project
representative, shall maintain direct contact with Contractor and conduct
regularly scheduled job and progress meetings at the Land, or such other place
as agreed to, with Contractor and Tenant's representative, as appointed by
Tenant, as well as extraordinary meetings where deemed necessary by Landlord,
Architect or Contractor, to discuss such matters such as, but not limited to,
procedures, progress, safety and scheduling. Tenant may  inspect the
installation of the Improvements and the progress of the Improvements.  Landlord
shall be available, and cause the Contractor to be available, to Tenant or its
representatives from time to time upon reasonable prior notice when necessary or
desirable for the purpose of reviewing the Improvements. Tenant shall not
communicate directly with Contractor or any subcontractors or interfere with
construction of the Improvements in connection with its inspections.

       (i)    COMPLIANCE WITH LAWS. Landlord, at its expense, shall obtain all
approvals, permits, and other consents required to commence, perform and
complete the Improvements; shall at all times cause all work in connection with
the Improvements to be carried out in compliance with all such consents and in
compliance with all Applicable Laws.  All approvals, permits, inspection
reports, notices, and other similar documents prepared or received by Landlord
or the Contractor.

       (j)    TENANT'S WORK.  All finishing work, equipment installation,
cabling, and interior wall finish for the offices, or other work (the "Tenant's
Work") desired by Tenant, if any, and not initially or thereafter included in
the Improvements, shall be performed by Tenant, at Tenant's expense, through
contractors selected by Tenant and approved by Landlord, which approval shall
not to be unreasonably withheld or delayed; provided that Landlord's approval
shall not be required for contractor's or subcontractors who provide materials
or labor the aggregate cost of which is estimated not to exceed $25,000.
Landlord and Tenant shall each cause their respective general contractor and/or
subcontractors for the Improvements and Tenant's Work to cooperate with each
other in facilitating the mutual access to the Leased Premises and in
coordinating the timing of the stages of the Improvements and the Tenant's Work
so as to facilitate the completion on a timely basis. To the extent reasonably
possible and without having to incur additional expense, Landlord shall, prior
to Substantial Completion, provide Tenant with access to the Leased Premises and
storage space at the site for Tenant's equipment, trade fixtures, and other
property in connection with Tenant's Work and shall furnish water, electricity
and HVAC to the Leased Premises during the performance of any Tenant's Work to
the extent the same are then available at the Leased Premises; provided that,
Tenant shall reimburse Landlord or Contractor, as applicable, within fifteen
(15) days after written demand, for the cost of any such utility services used
by Tenant determined by Contractor and agreed to by Tenant, such not to be
unreasonably withheld, to be in excess of that which would otherwise have been
used by Contractor, or its subcontractors, in the course of constructing the
Improvements.  The performance by Tenant of Tenant's Work prior to the
Commencement Date shall be subject to all of the terms and conditions of Article
10 hereof.

                                       5
<PAGE>

       (k)    TENANT DELAYS. The term "Tenant Delay" shall mean any actual delay
in the completion of the Improvements which delays Substantial Completion and
which is due to any act or omission of Tenant, its agents, or contractors.
Tenant Delays shall include:

              (1)    Change Delays;

              (2)    Any delay by Tenant in giving Landlord notice of Tenant's
       approval of any Change Orders or in giving Landlord notice of any other
       consents or approvals required of Tenant hereunder in connection with the
       Improvements; and

              (3)    any other delay in the occurrence of Substantial Completion
       caused by a Tenant Party (hereinafter defined), including, without
       limitation, any delay resulting from Tenant's Work (hereinafter defined)
       or the  installation by any Tenant Party of any property or equipment of
       Tenant in or on the Leased Premises prior to Substantial Completion and
       any delay due to interference by any Tenant Party with Landlord's
       engineers, consultants, contractors or otherwise.  As used in this Lease,
       a "Tenant Party" shall mean one or more of Tenant, its agents, employees,
       officers, partners or contractors or any of their invitees or licensees.

       (l)    NOTICE OF DELAY. At the request of either the Landlord or the
Tenant, at any time and from time to time prior to the date of Substantial
Completion, Landlord or Tenant may require the other party to provide a written
notice setting out whether or not Landlord or Tenant, as the case may be, is
aware of any delays under either Article 1(k) or Article 1(l) hereof as of the
date of such notice.

       (m)    RESOLUTION OF DISPUTES. If Landlord and Tenant disagree as to
whether the Construction Documents have been properly prepared or as to whether
any aspect of the Improvements has been full or properly completed, or is
otherwise defective, or as to the appropriate manner to correct any such
deficiency, or as to the calculation of Change Costs hereunder, or as to the
designation of any Tenant Delay hereunder, and if Landlord and Tenant, using
their reasonable good faith efforts, are otherwise unable to resolve such
dispute, then such dispute shall be resolved by referring the same to the
Consulting Architect.  In order to initiate such a resolution of any dispute, a
party shall be required to give the other party and the Consulting Architect
written notice requesting such resolution, which notice shall identify the issue
in dispute. The Consulting Architect shall promptly notify the parties of the
date, time, and place for the meeting to resolve of such dispute, which date
shall in no event be later than ten (10) business days after the Consulting
Architect's receipt of the demand for resolution. Such notice may be given by
telephone if promptly confirmed by written notice. At the conclusion of such
meeting, the Consulting Architect shall advise both parties of the Consulting
Architect's decision. The Consulting Architect shall send the parties written
notice confirming such decision immediately thereafter. Both parties shall be
bound by any and all decisions made by the Consulting Architect and shall
perform their obligations hereunder in accordance with such decisions. The
Consulting Architect's fees and expenses for dispute resolution pursuant hereto
shall be split equally between Landlord and Tenant.  The Consulting Architect
shall be AECC until such time as Landlord and Tenant otherwise agree in writing.

                                       6
<PAGE>

                                   ARTICLE 2

                                     TERM

       (a)    INITIAL TERM/TERM.  Subject to and upon terms, provisions and
conditions hereinafter set forth, the "Initial Term" of this Lease shall begin
on the Commencement Date, and shall expire at 11:59 p.m. on the last day of the
one hundred and twentieth (120) complete calendar month thereafter.  The
"Commencement Date" shall be the earlier to occur of (i) the date upon which
Substantial Completion occurs and (ii) the date Tenant takes possession of the
Leased Premises for purposes of business operation and not for the performance
only of Tenant's Work.  If the Commencement Date occurs on the first day of a
calendar month, the month in which the Commencement Date occurs shall be the
first complete calendar month after the Commencement Date for purposes of
determining the expiration of the Initial Term.  The Initial Term together with
any Renewal Terms is the "Term" of this Lease or the "Lease Term" as such terms
may be used interchangeably in this Lease.

       (b)    RENEWAL OPTIONS.

              (1)    So long as there is no uncured default hereunder by Tenant
       as of the date of Tenant's exercise of any Renewal Option or as of the
       date of the commencement of any Renewal Term, Tenant shall be entitled
       and is hereby granted two (2) successive options (the "Renewal Options")
       to extend the Term for an additional period of five (5) years each (the
       "Renewal Terms"). Except for Base Rent, as hereinafter defined and
       separately provided for, the Renewal Terms shall be on all the other
       terms and conditions of this Lease; provided, however, that (i) upon the
       exercise of the first Renewal Option Tenant shall have only one remaining
       Renewal Option and upon its exercise of the second Renewal Option Tenant
       shall have no further right or option to renew or extend the Term without
       Landlord's written consent, which may be withheld in Landlord's sole
       discretion, and (ii) Landlord shall not have any obligations to make any
       improvements or otherwise provide any inducement to Tenant. Tenant shall
       exercise each Renewal Option, if at all, only by giving written notice of
       such exercise to Landlord not less than six (6) months,  nor more than
       twelve (12) months, prior to the expiration of the Initial Term or first
       Renewal Term, as the case may be. Should Tenant fail to timely exercise a
       Renewal Option in accordance with the preceding provisions, then the Term
       shall expire and this Lease shall terminate at the end of the Initial
       Term or the current Renewal Term, as applicable, and Tenant shall have no
       further right or option to renew or extend the  Term. Tenant's exercise
       of a Renewal Option shall be irrevocable.

              (2)    Within thirty (30) days after Landlord receives Tenant's
       written notice of its exercise of a Renewal Option, Landlord shall
       deliver a notice to Tenant (the "Market Rate Notice") specifying the
       Market Rate for the applicable Renewal Term, such to be based upon
       Landlord's reasonable and good-faith determination of rents being charged
       for comparable space of equivalent quality, size, utility and location,
       and for terms commensurate with the applicable Renewal Term.  Tenant
       shall have thirty (30) days (the "Examination Period") from its receipt
       of the Market Rate Notice to accept or reject Landlord's designation of
       the Market Rate.  If Tenant accepts Landlord's designation of the Market
       Rate, the "Base Rent" for the Renewal Term will be the Market Rate as set
       forth in the Market Rate Notice.  If Tenant fails to reject in writing
       Landlord's

                                       7
<PAGE>

       designation of the Market Rate set forth in the Market Rate Notice
       during the Examination Period, Tenant shall be deemed to have accepted
       Landlord's designation of the Market Rate, the Base Rent for the Renewal
       Term will be the Market Rate set forth in the Market Rate Notice.  If
       Tenant timely rejects Landlord's designation of the Market Rate prior to
       the expiration of the Examination Period and Landlord and Tenant cannot
       agree in writing on the Market Rate within fifteen (15) days after the
       date Landlord receives Tenant's timely rejection of Landlord's
       designation of the Market Rate set forth in the Market Rate Notice (the
       "Negotiation Period"), Base Rent for the applicable Renewal Term will be
       determined as follows:

                     (i)    Tenant's notice to Landlord of Tenant's rejection of
              Landlord's designation of the Market Rate shall include Tenant's
              designation of its appraiser for purposes of determining the
              Market Rate in the event Landlord and Tenant cannot agree on the
              Market Rate during the Negotiation Period.  Such notice shall
              further include appraiser's name, address and telephone number.
              Within ten (10) days after the expiration of the Negotiation
              Period (assuming that Landlord and Tenant cannot agree on the Base
              Rent during the Negotiation Period); Landlord shall select an
              appraiser of its choice and give Tenant written notice of such
              appraiser's name, address and telephone number.

                     (ii)   The two (2) selected appraisers shall attempt to
              mutually determine the fair rental value of the Leased Premises
              for the applicable Renewal Term and the "Base Rent" for such
              Renewal Term will be the fair market value as so determined.  If
              the two (2) selected appraisers cannot agree on the fair rental
              value for the Leased Premises for the applicable Renewal Period
              within thirty (30) days after Landlord has notified Tenant of
              Landlord's selected appraiser, then those appraisers shall select
              another individual as a third appraiser within fifteen (15) days
              after the expiration of such thirty (30) day period, and shall
              furnish Landlord and Tenant written notice of such appraiser's
              name, address and telephone number. All appraisers selected shall
              be M.A.I. appraisers, unless Landlord and Tenant shall otherwise
              agree in writing, each having at least ten (10) years experience
              with commercial property in the Dallas/Fort Worth, Texas metroplex
              area.

                     (iii)  Each of the three (3) selected appraisers shall then
              individually determine the fair rental value of the Leased
              Premises for the applicable Renewal Term within thirty (30) days
              after the selection of the third appraiser and the "Base Rent" for
              such Renewal Term shall be the average of the three (3)
              appraisals.

                     (iv)   If the procedure set forth in above is implemented,
              and if for any reason whatsoever (including, without limitation,
              the institution of any judicial or other legal proceedings), the
              Base Rent for any Renewal Term has not been finally determined
              prior to the first day of the applicable extended Renewal Term,
              then the Market Rate initially determined by Landlord in good
              faith shall be the Base Rent for all purposes under the Lease
              until such time as the Base Rent is finally determined as set
              forth above, and Landlord and Tenant shall, by

                                       8
<PAGE>

              appropriate payments to the other, correct any overpayment or
              underpayment which may have been made prior to such final
              determination.

                     (v)    All fees, costs and expenses incurred in connection
              with obtaining the appraisals and the arbitration procedure set
              forth in this paragraph shall be shared equally by Landlord and
              Tenant; however, Landlord and Tenant shall each bear their own
              attorneys' fees incurred with respect to this procedure.

              (3)    Tenant may not assign the Renewal Options to any assignee
       or subleases of the Lease that is not a Permitted Assignee (hereinafter
       defined).  No assignee or sublessee may exercise the Renewal Options
       unless such is a Permitted Assignee of Tenant.

              (4)    If the Term is extended pursuant to Tenant's exercise of a
       Renewal Option, Landlord shall prepare, and Landlord and Tenant will
       execute and deliver an amendment to this Lease extending the Term and
       specifying the new Base Rent; provided, however, that the failure of the
       parties to enter into such an amendment will not affect the validity of
       Tenant's exercise of the Renewal Option or the obligations of the parties
       during the Renewal Term.

       (c)    ENTRY BY TENANT PRIOR TO THE COMMENCEMENT DATE.  It is agreed that
Tenant may enter into the Leased Premises prior to the completion of the
Improvements for the purpose of completing the Tenant's Work, if any, without
being deemed thereby to have taken possession of the Leased Premises or
obligated itself to pay Rent; provided that Tenant's Work shall in no way
interfere with the construction of such Improvements or the work of Landlord or
Contractor and shall not subject Landlord to any liabilities whatsoever.

                                     ARTICLE 3

                                     BASE RENT

       (a)    BASE RENT AND ADJUSTMENTS.

              (1)    BASE RENT. As consideration for the use and occupancy of,
       and as rental for, the Leased Premises, Tenant promises and agrees to pay
       Landlord, while this Lease remains in force and effect, for the Initial
       Term, paid in monthly payments in advance $93,333.33 per month
       ($1,119,999.96 annualized).  Such rent is herein the "Base Rent".

              (2)    CHANGE COSTS.  Base Rent shall be further adjusted for any
       amortized Change Costs as contemplated by Article 1(e).

       (b)    Base Rent and any other monthly installments of Rent required to
be paid hereunder by Tenant to Landlord shall be due and payable, in advance,
beginning on the Commencement Date and continuing on the first day of each
calendar month during the Term.  Any installment of Base Rent due for any
fractional calendar month shall be prorated based upon the actual number of days
in that month.  All Rent (hereinafter defined) shall be paid at the times and in
the amounts provided for herein in legal tender of the United States of America
to Landlord at the address specified in Article 25 hereof or to such other
person or at such other

                                       9
<PAGE>

address as Landlord may from time to time designate in writing.  Tenant's
obligation to pay any installment of Rent shall not be deemed satisfied until
such installment of Rent has actually been received by Landlord. As used in
this Lease, "Rent" shall mean the Base Rent and all other amounts provided
for in this Lease to be paid by Tenant to Landlord, all of which shall
constitute rental in consideration for this Lease and the leasing of the
Leased Premises.

       (c)    If on  the Commencement Date there remains an unused and
unallocated balance of the Finish Allowance or any other allowances granted by
Landlord hereunder, Landlord shall (i) apply such balance to any amounts payable
by Tenant to Landlord under Article 1(f) above or otherwise owing by Tenant to
Landlord hereunder, and (ii) any remaining balance shall be paid to Tenant.

       (d)    Other remedies for nonpayment of Base Rent notwithstanding, if the
monthly Base Rent payment is not in Landlord's possession on or before the fifth
(5th) day of the month for which the Base Rent is due, or if any other payment
is due Landlord by Tenant is not received by Landlord prior to the expiration of
any applicable cure or grace period, a late payment charge of five percent (5%)
of such amount shall, unless waived in writing by Landlord, become due and
payable in addition to such amounts owed under this Lease.  In addition,
Landlord shall be entitled to charge one-hundred dollars ($100.00) for each
check or payment which is not honored by Tenant's bank.  Said charge to be in
addition to any other amounts owed under this Lease.

                                     ARTICLE 4

                                       TAXES

       (a)    The term "Taxes" as used herein shall mean all taxes, levies and
assessments of every character imposed or assessed upon or against the Leased
Premises by any governmental agency or authority having jurisdiction, and all
assessments due to deed restrictions and/or owner or community associations,
whether foreseen or unforeseen; provided nothing herein shall require or be
construed to require Tenant to pay any gift, estate, inheritance, excess
profits, succession, capital levy, transfer tax, income tax, payroll tax or
other tax assessment, mortgage, charge or levy arising out of the Rent payable
by Tenant or other income received by Landlord, its successors or assigns. If at
any time during the Term, the State of Texas or any political subdivision of the
state, including any county, city, city and county, public corporation,
district, or the United States of America, levies or assesses against Landlord a
tax, fee or excise: (i) on rents, (ii) on the square footage of the Leased
Premises, (iii) on the act of entering into this Lease, (iv) on the occupancy of
Tenant, or any other tax, fee, or excise, however described, including, without
limitation, a so-called value added, business activity or gross receipts tax, as
a direct substitution in whole or in part for, or (except in the case of (i)
above) in addition to, any real property taxes, Tenant shall pay before
delinquency said tax, fee, or excise.

       (b)    Subject to Tenant's protest right provided below, Tenant shall pay
all Taxes during the Term directly to the taxing authority therefor not less
than thirty (30) days prior to the date on which any such Taxes would become
delinquent and shall provide evidence thereof to Landlord upon written request.
Without waiver of any other remedies of Landlord for Tenant's failure to timely
pay Taxes, Tenant shall be responsible for all damages, penalties and fines
incurred by the Leased Premises or Landlord due to Tenant's failure to timely
pay Taxes.

                                       10
<PAGE>

Additionally, if Tenant fails to provide such evidence and Landlord, without
having any obligation to do so, pays Taxes, Tenant shall reimburse Landlord
for the full amount thereof upon demand. Taxes for the partial year in which
the Commencement Date occurs and the year in which the Term expires or this
Lease is terminated shall (unless terminated for Tenant's default) be
prorated between Landlord and Tenant.

       (c)    If any Taxes are paid by Landlord to any taxing authority for any
tax year in installments, the amount payable by Tenant hereunder shall be
payable in similar installments, and no amount shall be payable by Tenant on
account of installments becoming payable after the expiration of the Term which
are attributable to a period of time after the expiration of the Term or
attributable to any period of time prior to the Commencement Date. If any
assessment for new public improvements (and not for repair or replacement of
existing public improvements) is payable only in a lump sum, rather than in
installments, Tenant shall pay a pro rata share of such assessment based upon
the proportion that the number of years remaining in the Term bears to the
expected useful life of such new public improvements as determined by a third
party consultant. For purposes of the preceding sentence, the "Term" of this
Lease shall mean the Initial Term; provided that, if Tenant exercises a Renewal
Option, Tenant shall be assessed its pro rata share based upon the proportion
that the number of years of such Renewal Term bears to the expected remaining
useful life of such public improvement.

       (d)    Landlord shall within ten (10) days of receipt, deliver to Tenant
statements, assessments and other notices relative to any tax or assessment;
provided that Landlord's failure to timely deliver such notices shall in no way
relieve Tenant of the obligation to pay Taxes.  If Landlord's delay in
delivering any such notices to Tenant is the direct and actual cause of late
payment of Taxes, Landlord shall be responsible for any penalties due thereto.

       (e)    Tenant shall have the right, before delinquency occurs, of
contesting, objecting to or opposing the legality, validity or amount of any
such Taxes; provided that prompt notice of such contest, objection or opposition
shall be given to Landlord by Tenant at least twenty (20) days before any
delinquency; and provided, further, that such contest, objection or opposition
shall not be carried on or maintained after the aforementioned time limit for
the payment of said obligations unless Tenant shall have duly paid the amount
involved under protest or shall have procured and maintained a stay of all
proceedings to enforce any collection thereof and shall also have provided for
payment thereof, together with all penalties, interest, costs, and expenses, by
a deposit of sufficient sum of money or by a good and sufficient undertaking as
may be required or permitted by law to accomplish such a stay. In the event of
any such contest, objection or opposition, Tenant agrees to pay and discharge
any unpaid amounts finally determined to be due within thirty (30) days after
the final determination thereof or within such later grace period as may be
allowed by law.

       (f)    If any mortgagee of Landlord requires that Taxes be escrowed with
such mortgagee, Tenant shall pay to Landlord on a monthly basis, on the same
date that Base Rent is due, an amount equal to 1/12 of the estimated total
annual Taxes, as determined by Landlord.  Tenant authorizes Landlord to use such
funds to pay Taxes and to fund any escrows required by Landlord's mortgagee.  If
Tenant's total Tax payments for any year are less than the actual Taxes, Tenant
shall pay the difference to Landlord within twenty (20) days after written
demand, such to be accompanied by copies of applicable tax bills.  If the total
payments of Tenant are

                                       11

<PAGE>

more than the actual Taxes, Landlord shall retain such excess and credit it
against Tenant's next monthly estimated payments of Taxes or, at Landlord's
option, return such excess to Tenant.

                                     ARTICLE 5

                                     INSURANCE

       (a)    Tenant shall at its sole expense, maintain at all times during the
Term, comprehensive general liability insurance with respect to the Leased
Premises and the conduct or operation of Tenant's business therein with
contractual liability endorsement, naming Landlord and such other parties
designated by Landlord, as an additional insured, in an amount not less than
$5,000,000.00 combined single limit.

       (b)    During the entire Term, Tenant shall keep the Building and other
Improvements constituting a portion of the Leased Premises insured in the name
of and for the benefit of Landlord and the holder of any mortgage or deed of
trust on the Leased Premises as their respective interests may appear, on an
"all risk" form, against loss or damage by fire and all hazards covered by the
standard form of extended coverage endorsement (subject to exclusions approved
by and otherwise in form satisfactory to Landlord), and containing twelve (12)
months' rents insurance, flood loss (if the Leased Premises is located in a
flood zone) and sprinkler breakage coverage. Such insurance shall be for not
less than one hundred percent (100%) of the full replacement value thereof, as
the same shall change from time to time. The term "full insurable value" as used
herein means agreed value for actual replacement costs, including the cost of
debris removal. Tenant shall carry, at Tenant's sole cost and expense, fire and
extended coverage casualty insurance on all of the alterations and improvements
completed by Tenant in the Leased Premises and all trade fixtures, equipment,
inventory, and personal property located on the Leased Premises.  Deductibles
under policies to be carried by Tenant hereunder shall not exceed $100,000 per
occurrence. Tenant shall not take out separate property insurance concurrent in
form or contributing in the event of loss with that required hereunder, unless
Landlord and Landlord's mortgagee is included therein as a named insured.

       (c)    All insurance policies required by this Article 5 shall be written
by companies licensed to sell insurance in Texas and having a rating of A VIII
or better, as set forth in the most recent issue of Best's Insurance Reports.

       (d)    At the commencement of the Initial Term of this Lease, Tenant
shall deliver to Landlord Certificates of Insurance manifesting the insurance
coverage required by this Article 5 and, at least thirty (30) days prior to the
expiration of each such policy, shall pay the premiums for the renewal of such
insurance and provide information satisfactory to Landlord evidencing payment
thereof. All policies shall provide at least thirty (30) days' written notice to
Landlord, Landlord's mortgagee and Tenant of any cancellation, termination, or
material alteration.

       (e)    Tenant and Landlord shall cooperate in connection with the
collection of any insurance monies that may be due in the event of loss and
shall execute and deliver such proofs of loss and other instruments which may be
required for the purposes of obtaining recovery of any such insurance monies.

                                       12
<PAGE>

       (f)    NOTWITHSTANDING ANY OTHER PROVISION OF THIS LEASE, LANDLORD AND
TENANT HEREBY WAIVE ANY RIGHTS EACH MAY HAVE AGAINST THE OTHER ON ACCOUNT OF ANY
LOSS OR DAMAGE OCCASIONED TO LANDLORD OR TENANT, AS THE CASE MAY BE (WHETHER OR
NOT SUCH LOSS OR DAMAGE IS CAUSED BY THE FAULT OR SOLE OR CONCURRENT NEGLIGENCE
OF THE OTHER PARTY), TO THEIR RESPECTIVE PROPERTY OR TO THE LEASED PREMISES OR
ITS CONTENTS ARISING FROM ANY RISK THAT IS COVERED BY ANY INSURANCE REQUIRED TO
BE CARRIED UNDER THIS LEASE OR OTHERWISE CARRIED BY LANDLORD OR TENANT, BUT ONLY
TO THE EXTENT OF INSURANCE PROCEEDS ACTUALLY RECEIVED (SUCH EXTENT TO INCLUDE
APPLICABLE DEDUCTIBLES BUT NOT THE LIMITS OF ANY APPLICABLE SELF INSURANCE).
THE FOREGOING SHALL NOT BE OPERATIVE IN ANY CASE IN WHICH THE EFFECT WOULD BE TO
INVALIDATE ANY INSURANCE COVERAGE REQUIRED TO BE CARRIED HEREUNDER.  TENANT, ON
BEHALF OF ITS INSURANCE COMPANIES (WHICH INSURANCE COMPANIES SHALL INCLUDE SUCH
TENANT IF TENANT IS ALLOWED TO SELF INSURE UNDER THIS LEASE) INSURING THE
PROPERTY OF TENANT AGAINST ANY SUCH LOSS, WAIVES ANY RIGHT OF SUBROGATION THAT
IT MAY HAVE AGAINST LANDLORD.  TENANT AGREES IMMEDIATELY TO GIVE TO EACH SUCH
INSURANCE COMPANY WRITTEN NOTIFICATION OF THE TERMS OF THE WAIVERS CONTAINED IN
THIS PARAGRAPH, AND TO HAVE ITS INSURANCE POLICIES PROPERLY ENDORSED, IF
NECESSARY, TO PREVENT THE INVALIDATION OF SAID INSURANCE COVERAGES BY REASON OF
SAID WAIVERS, AT TENANT'S SOLE COST.

       (g)    For the purposes of this Article 5 only, the "Term" shall commence
upon the earlier to occur of (i) the Commencement Date, and (ii) the date that
Tenant or any Tenant Party first enters the Leased Premises to perform any of
Tenant's Work.

                                     ARTICLE 6

                  USE OF LEASED PREMISES AND COMPLIANCE WITH LAWS

       (a)    The Leased Premises shall be used only for the purpose of
receiving, storing and distributing products, materials and merchandise made
and/or distributed by Tenant, incidental office use in connection therewith and
for such other lawful purposes as may be incidental thereto.  Outside storage,
other than storage of trucks and other vehicles, is prohibited without
Landlord's prior written consent which shall not be unreasonably withheld.
Tenant shall not permit any objectionable or unpleasant odors, smoke, dust, gas,
noise or vibrations to emanate from the Leased Premises, nor take any other
action that would constitute a health or environmental hazard or nuisance or
that would disturb, interfere with, or endanger Landlord or the occupant of any
other land or buildings in the vicinity of the Leased Premises.  Landlord agrees
that odors, smoke or noise emanating from trucks servicing the Leased Premises
in the ordinary course of Tenant's business will not violate these prohibitions
provided that such are not unreasonable.

       (b)    Tenant shall comply with and fulfill all state, federal and
municipal laws, regulations and ordinances, court decisions and all matters of
record (E.G., deed restrictions) applicable to the use of the Leased Premises by
Tenant and the business of Tenant conducted

                                       13
<PAGE>

thereon (collectively "Applicable Laws") including without limitation, the
Americans with Disabilities Act ("ADA").

       (c)    Tenant shall not change locks or install additional locks on doors
without prior written consent of Landlord.  Tenant shall not make or cause to be
made duplicates of keys procured from Landlord without prior approval of
Landlord. All keys to Leased Premises shall be surrendered to Landlord upon
termination of this Lease.

       (d)    The water closets and other water fixtures shall not be used for
any purpose other than those for which they were constructed, and any damage
resulting to them from misuse, including  improper disposal of any materials, or
by the defacing or injury of any part of the Building shall be borne by the
person who shall occasion it.  No person shall waste water by interfering with
the faucets or otherwise.

                                     ARTICLE 7

               CONDITION OF LEASED PREMISES AND REPAIRS/IMPROVEMENTS

       (a)    Landlord shall not be required to make any improvements,
replacements or repairs of any kind or character to the Leased Premises or the
Building during the Term except as set forth in this section.  Landlord shall
repair, maintain in good condition only the roof, foundation, floor slab (but
not the sealant or any floor coverings) and structural soundness of the exterior
walls of the Building except for damage caused by any act or omission of a
Tenant or any Tenant Party or by casualty.  Landlord may elect to repair any
damage caused by a Tenant or any Tenant Party, and if Landlord so elects, Tenant
shall pay Landlord the cost or anticipated cost of such repair on demand.  The
term "walls" as used herein shall not include windows, glass or plate glass,
doors, special store fronts or office entries.  Tenant shall promptly give
Landlord written notice of any defect or need for repairs, after which Landlord
shall have reasonable opportunity to repair same or cure such defect.  In the
event Landlord refuses or neglects to commence or to complete properly and
adequately any repairs which are the responsibility of Landlord hereunder and
such failure continues for fifteen (15) days after written notice to Landlord or
such longer period as is reasonably required, then Tenant may (but shall not be
obligated to) make such repairs.  In such event, Landlord shall be obligated to
repay the actual cost thereof to Tenant.

       (b)    From and after the Commencement Date, if any improvement,
modification or alteration of any portion of the Leased Premises is required to
bring same into compliance with the ADA or any other Applicable Laws, or if
Landlord otherwise makes capital repairs, replacements or improvements to the
Leased Premises (as determined using generally accepted accounting principles)
that are not the express obligation of Landlord to undertake at its sole cost
under subparagraph (a) above and (i) Tenant is not otherwise expressly
responsible for such repair, replacement or improvement under this Lease, (ii)
the necessity for such repair, replacement or improvements was not caused, in
whole or in part, by Tenant or any Tenant Party, and (iii) the necessity for
such repair, replacement or improvement was not due to the specific use of the
Leased Premises by Tenant, then Landlord will undertake to complete such repair,
replacement or improvements and the cost thereof will be charged back to Tenant
over the useful life of the subject repair, replacement or improvements with the
assumption that the only portion of such expense chargeable for any one year
will be a fraction of such expense, the

                                       14
<PAGE>

numerator of which is one and the denominator of which is the estimated
useful life of the subject repair, replacement or improvements.  In the event
that (i) Tenant is expressly responsible for such repair, replacement or
improvement under this Lease, (ii) the necessity for such repair, replacement
or improvements was caused, in whole or in part, by Tenant or any Tenant
Party, or (iii) the necessity for such repair, replacement or improvement was
due to the specific use of the Leased Premises by Tenant, Tenant shall be
solely responsible for the entire cost of such repair, replacement or
improvements.  In such event, and if Landlord elects to construct such
repair, replacement or improvement, Tenant shall pay the cost thereof to
Landlord in the same manner as Tenant pays for the cost of the Finish Work in
excess of the Finish Allowance under Aticle 1(g)(2).  If Landlord elects for
Tenant to complete such repair, replacement or improvement, such shall be
performed by Tenant, at Tenant's cost, subject to all of the terms of Article
10 below.

       (c)    From and after the Commencement Date, and except as otherwise
herein provided and except for repairs required to be performed by Landlord
under subparagraph (a) above, or covered by Landlord's one-year express warranty
made herein, Tenant agrees, at its sole cost and expense, to maintain all of the
Leased Premises in good condition and repair during the Term (except for such
repairs made necessary by fire or other casualty and which are repaired in
accordance with the provisions of Article 9 below) including, without limitation
landscaping,  plumbing, wiring, fixtures, equipment, heating and air
conditioning equipment, interior and exterior decorations, glass and painting in
and on the Building and the parking area and ingress and egress lanes, it being
understood and agreed that Landlord shall have no obligation to maintain the
Leased Premises after Tenant takes possession other than as expressly provided
herein.  Upon termination of this Lease, Tenant shall deliver the Leased
Premises to Landlord in as good a condition as existed on the date Tenant took
possession, the effects of ordinary wear and tear, and obsolescence in spite of
repairs excepted.

       (d)    Upon written request by Tenant, and to the extent assignable
without cost to Landlord, Landlord will assign to Tenant all construction or
equipment warranties, guarantees, and/or service policies received by it which
are applicable to the Improvements that are required to be repaired and
maintained by Tenant; provided that such assignment shall not prevent Landlord
from enforcing same for its own benefit in order to perform its obligations
herein. Landlord hereby represents and warrants to Tenant that, in addition to
any other warranties, Landlord shall obtain a warranty covering the roof of the
Leased Premises for a period of not less than 10 years.

       (e)    In the event Tenant refuses or neglects to commence or to complete
properly and adequately any repairs which are the responsibility of Tenant
hereunder, then Landlord may (but shall not be obligated to) make such repairs
after thirty (30) working days' written notice to Tenant, or such shorter period
required to protect life or property. In such event, Tenant shall be obligated
to repay the cost thereof to Landlord, upon demand, as additional Rent.

       (f)    Tenant shall, at its sole cost and expense, during the Term
maintain a regularly scheduled preventative maintenance/service contract on an
annual basis with a maintenance contractor for the servicing of all sprinkler
systems, hot water, heating and air conditioning systems and equipment within or
servicing the Leased Premises.  The maintenance contractor and contract must be
approved by Landlord and must include all services suggested by the equipment
manufacturer.  A copy of the service contract shall be provided to Landlord
within

                                       15
<PAGE>

sixty (60) days following the Commencement Date.  In the event the service
contract is not provided, then Landlord shall have the right, but not the
obligation to have the work done and the cost therefor shall be charged to
Tenant as additional rent and shall become payable by Tenant with the payment
of the Base Rent next due hereunder.

                                      ARTICLE 8

                              RELEASE AND INDEMNIFICATION

       (a)    Except as otherwise expressly provided in this Lease, no Landlord
Party (hereinafter defined) will be liable to Tenant or  any Tenant Party, and
Tenant hereby releases Landlord and agrees to hold Landlord harmless from and
against, any injury to person or damage to property on or about the Leased
Premises caused by (A)(i) the Leased Premises becoming out of repair, (ii) the
leakage of gas, oil, water or steam or by electricity emanating from any part of
the Leased Premises, or (iii) any other cause, EXCEPT AND THEN ONLY TO THE
EXTENT THAT SUCH INJURY OR DAMAGE ARISES OUT OF OR RESULTS FROM THE GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT OF A LANDLORD PARTY (WHETHER OR NOT MERELY
ALLEGED, THREATENED OR PROVEN), or (B) the act or omission of a Tenant Party.
As used in this Article 8, a "Landlord Party" shall mean one or more of Landlord
and any officer, shareholder, partner, employee or agent of Landlord and its and
their respective heirs, legal representatives, successors and assigns.   TENANT
ACKNOWLEDGES THAT THIS PROVISION SHALL BE CONSTRUED TO MEAN THAT NO LANDLORD
PARTY SHALL BE LIABLE TO TENANT, ANY TENANT PARTY OR ANY INVITEE OF TENANT OR A
TENANT PARTY FOR ANY ALLEGED, THREATENED OR PROVEN NEGLIGENCE OF LANDLORD OR ANY
LANDLORD PARTY EXCEPT AS EXPRESSLY SET FORTH HEREIN.

       (b)    Tenant shall indemnify and hold Landlord harmless from and against
any and all fines, suits, losses, costs, together with reasonable court costs
and reasonable attorneys fees incurred by Landlord in defending same,
liabilities, claims, demands, actions and judgments of every kind and character
suffered by, recovered from, or asserted against a Landlord Party, (i) arising
by reason of any breach, violation or non-performance by Tenant of any term,
provision, covenant, condition or agreement to be performed or abided by Tenant
hereunder, or (ii) arising on account of death, injury or damage to person or
property  in, on, or about the Leased Premises, or any part thereof, where such
death, injury or damage is caused, in whole or in party, by a Tenant Party (as
defined in Article 1(k) above) EXCEPT AND TO THE EXTENT SUCH IS CAUSED BY OR
ARISES OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF LANDLORD OR ANY
LANDLORD PARTY (WHETHER ALLEGED, THREATENED OR PROVEN), or the willful
misconduct of a Tenant Party, or (iii) arising out of any action brought by any
Tenant Party for which Landlord has been released by Tenant under (a) above.
Upon the occurrence of an event which Tenant is required to indemnify Landlord
against, and upon demand by Landlord, Tenant shall employ counsel reasonably
acceptable to Landlord and defend Landlord against any liability for such event,
all at Tenant's cost.  The indemnities and covenants of Tenant in this paragraph
(b) are in addition to, and not in limitation of, any other indemnities made by
Tenant elsewhere in this Lease.

       (c)    This Article 8 shall survive the expiration or termination of this
Lease with respect to any claims or liability occurring or first arising prior
to such expiration or termination.

                                       16
<PAGE>

                                      ARTICLE 9

                                DAMAGE OR DESTRUCTION

       (a)    If the Building should be damaged or destroyed by fire or other
peril, Tenant immediately shall give written notice to Landlord.  If:  (i) the
Building should be totally destroyed by any peril not covered by insurance
required to be carried hereunder; or if (ii) the Leased Premises should be so
damaged thereby that, in Landlord's estimation, rebuilding or repairs cannot be
completed within one hundred eighty (180) days after Landlord's receipt of
insurance proceeds and required permits; or if (iii) the Leased Premises should
be so damaged thereby that, in Landlord's estimation, rebuilding or repairs of
the portion thereof required to be insured by Tenant can be substantially
completed within one hundred eighty (180) days after the date of such damage,
but the insurance proceeds available to Landlord will not, in Landlord's
estimation, be sufficient to complete such rebuilding or repairs (due to such
insurance proceeds being applied to mortgage debt or otherwise) and Landlord is
either unable or unwilling to advance sufficient funds to complete such
rebuilding or repairs (such decision to be made within sixty (60) days of the
casualty); then in any of such events this Lease shall cease and terminate as if
and to the extent the effective date of such termination had been the date
originally scheduled for the expiration of the term of this Lease, and the Rent
shall be abated during the previously unexpired term of this Lease, effective
upon the date of the occurrence of such damage.

       (b)    Subject to the provisions of Article 9(a) above, if the Building
should be damaged by any peril covered by the insurance required to be carried
hereunder, and Landlord does not have the right to or does not elect to
terminate this Lease, then Landlord shall restore the Building to substantially
its previous condition, except that Landlord shall not be required to rebuild,
repair or replace any of Tenant's Property or any of Tenant's Work or any other
property of, or improvements or alterations made by, Tenant.  Subject to events
of Force Majeure or Tenant Delays, if such repairs and rebuilding of the Leased
Premises have not been substantially completed within one hundred eighty (180)
days after the date of Landlord's receipt of insurance proceeds and necessary
permits, Tenant, as Tenant's exclusive remedy, may give Landlord notice of
Tenant's intention to terminate the Lease effective as of the date specified in
such notice which date shall be not less than ninety (90) days after the notice.
If the repairs and rebuilding have not been substantially completed by the date
specified in such notice for reasons other than Tenant Delays or Force Majeure,
Tenant, as Tenant's exclusive remedy, may immediately terminate this Lease by
delivering written notice of termination to Landlord, in which event the rights
and obligations hereunder shall cease and terminate as if and to the extent the
effective date of such termination had been the date originally scheduled for
the expiration of the term of this Lease, and Rent shall be abated during the
unexpired term of this Lease, effective upon the date of the termination.  Rent
shall not be abated during any repairs or construction performed pursuant to
this Article 9(b).

       (c)    Notwithstanding any provision herein to the contrary, if Landlord
elects to proceed with the restoration of the Improvements not withstanding the
fact that Landlord estimates available insurance proceeds will be inadequate for
such restoration costs, or in the event available insurance costs are in fact
inadequate for such restoration costs, Tenant will pay the deficiency to
Landlord upon demand. Regardless of whether or not Landlord terminates this
Agreement or restores the Leased Premises, Tenant shall pay Landlord the amount
of any

                                       17
<PAGE>

applicable deductibles within thirty (30) days after written demand by
Landlord.  Such obligations shall survive any termination of this Agreement.

                                      ARTICLE 10

                                     ALTERATIONS

       (a)    Tenant may not make or permit any alterations, improvements, or
additions in or to the Leased Premises that may affect the structure or
structural integrity of the Building, the foundation or the roof.  Tenant may
otherwise make non-structural alterations costing, in the aggregate, less than
$25,000 in any consecutive 12-month period (exclusive of trade fixtures and
equipment), without Landlord's consent.  Landlord's consent will not otherwise
be unreasonably withheld.  All alterations and improvements desired by Tenant
are subject to the following conditions: (i) all alterations, improvements and
additions will be at the sole cost and expense of Tenant;  (ii) all alterations,
improvements and additions in and to the Leased Premises requested by Tenant
must be made in accordance with plans and specifications first approved in
writing by Landlord;  (iii) Tenant's contractors and subcontractors are subject
to Landlord's prior approval.  In addition, each of Tenant's contractor(s) and
subcontractor(s) must deliver evidence satisfactory to Landlord that  such
contractor or subcontractor, as applicable, carries insurance in amounts and
covering events customarily carried by similar contractors or subcontractors.
Upon Landlord's reasonable request, Tenant shall provide, or cause to be
provided, certificates of such  insurance to Landlord evidencing such coverage
and naming Landlord and any mortgagee of Landlord as an additional insured
thereunder; (iv) all alterations, improvements and additions made by Tenant must
comply with all Applicable Laws and applicable building permits and certificates
of occupancy.  Landlord's approval of Tenant's plans and specifications for the
alterations or improvements will not act as a confirmation or agreement by
Landlord that the improvements and alterations comply with Applicable Laws; (v)
Tenant must deliver to Landlord evidence that Tenant has obtained all necessary
governmental permits and approvals for the improvements, alterations and
additions prior to starting any work; (vi) all alterations, improvements and
additions must be done in a good and workmanlike manner so as not to damage or
alter the primary structure or structural qualities or the utility or other
systems of the Leased Premises or the Building and is subject to approval by
Landlord during and after construction, in its sole discretion; (vii) lien
releases from each of Tenant's contractor(s) and subcontractor(s) must be
submitted to Landlord within ten (10) days after completion of the work
performed by the contractor(s) or subcontractor(s); (viii) Tenant shall be
solely responsible for the safety and security of all equipment and property
installed or placed in, on or about the Leased Premises by a Tenant Party; and
(ix) if the cost of such alterations or improvements are estimated to cost in
excess of $200,000 in any 12-month period, Tenant shall provide, upon Landlord's
request, a performance bond or construction escrow or other security reasonably
satisfactory to Landlord to assure completion thereof and full payment therefor.

       (b)    Notwithstanding any other provision of this Lease, Tenant, at its
own cost and expense, may erect such shelves, racks, bins and trade fixtures
(collectively, "Tenant's Property") within the Leased Premises as it desires and
without Landlord's prior consent provided that (i) such items do not alter the
basic character of the Leased Premises or the Building; (ii) such items do not
overload or damage the Leased Premises or the Building or the utility or other
systems serving same; (iii) such items may be removed without material injury to
the Leased Premises and the Building; and (iv) the construction, erection or
installation thereof complies with all

                                       18
<PAGE>

Applicable Laws, applicable building permits and certificates of occupancy;
and (v) provided that Tenant's installation of Tenant's Property prior to the
Commencement Date will be subject to Article 1(j) above.  All of Tenant's
Property shall remain the property of Tenant and shall be removed on or
before the earlier to occur of the date of termination of this Lease or
Tenant's vacating of the Leased Premises.  Tenant shall promptly repair any
damage to the Leased  Premises caused by the removal of any of Tenant's
Property.  Any of Tenant's Property not so removed and any other property of
Tenant not removed prior to the termination of this Lease or Tenant's
vacating of the Leased Premises shall thereupon be conclusively presumed to
have been abandoned by Tenant, and Landlord may, at its option, take over
possession of any and all of the foregoing and either (i) declare the same to
be the property of Landlord by written notice to Tenant at the address
provided herein or (ii) at the sole cost and expense of Tenant, remove,
store, and/or dispose of the same or any part thereof, all at Tenant's cost,
in any manner that Landlord shall choose without incurring liability to
Tenant or any other person.

       (c)    Except as provided in Article 10(a)above, all alterations,
additions, and improvements made to, or fixtures or other improvements placed in
or on, the Leased Premises, whether temporary or permanent in character are a
part of the Leased Premises and are the property of Landlord when they are made
to or placed in or on the Leased Premises, without compensation to Tenant;
provided that, at Landlord's option, upon the termination of this Lease,
Landlord may require Tenant, at Tenant's cost, to remove any improvements made
to the Leased Premises by Tenant and restore the Leased Premises to
substantially the condition it was in on the Commencement Date, reasonable wear
and tear excepted.

       (d)    Tenant hereby indemnifies and holds Landlord harmless from any
claims, demands, actions, losses, and damages arising from activities of a
Tenant Party, or any of their invites, in connection with any alterations,
improvements or additions made or contracted for by Tenant.

                                      ARTICLE 11

                                      UTILITIES

       Tenant shall pay, before delinquency, all charges for water, gas,
electricity, telephone service and all other services and public utilities
furnished to or used in, upon or about the Leased Premises by Tenant during the
Term.

                                      ARTICLE 12

                                     HOLDING OVER

       (a)    Tenant agrees that upon the expiration or termination of this
Lease (however the same may be brought about), peaceable possession of the
Leased Premises will be promptly surrendered and delivered to Landlord.

       (b)    In case of holding over by Tenant after the termination of this
Lease without the written consent of Landlord (however such termination shall be
brought about), Tenant shall be obligated to pay Rent to Landlord on a per diem
basis for the entire hold over period at one hundred fifty percent (150%) of the
Base Rent in effect at the time of the termination of this

                                       19
<PAGE>

Lease. In the event of a holding over by Tenant after the Term (whether with
or without the written consent of Landlord), Tenant shall be and continue as
the Tenant at will of Landlord and in the event of Tenant's failure to
surrender, Landlord shall be entitled to institute and maintain an action of
forcible detainer of the Leased Premises in any court of competent
jurisdiction.  No holding over by Tenant, whether with or without consent of
Landlord, will shall operate to extend this Lease except as otherwise
expressly provided.  The preceding provisions of this Article 12 shall not be
construed as consent for Tenant to retain possession of the Leased Premises
in the absence of written consent thereto by Landlord.  In addition to the
above, and whether or not any holdover is permitted, if Tenant does not
vacate the Leased Premises within sixty  (60) days after written demand by
Landlord, Tenant shall be liable to Landlord for Landlord's consequential
damages incurred by Landlord as a result of any holdover by Tenant.

                                      ARTICLE 13

                                 ASSIGNMENT AND SALE

       (a)    In the event Tenant should desire to assign this Lease or sublet
the Leased Premises or any part thereof, Tenant shall give Landlord written
notice of such desire, together with financial information as to the proposed
assignee or subtenant as required by Landlord to allow Landlord to determine the
financial condition of such assignee or subtenant, at least fifteen (15) days in
advance of the date on which Tenant desires to make such assignment or sublease.
Landlord shall then have a period of fifteen (15) days following receipt of such
notice and financial information within which to notify Tenant in writing that
(i) Landlord consents to such assignment or sublease, which consent shall not be
unreasonably withheld, or delayed, or (ii) Landlord does not consent thereto
provided, however, that Tenant may without prior written notice and consent from
Landlord, assign this Lease or sublet all or part of the Leased Premises to any
entity which controls, is controlled by, or is under common control with Tenant
or any entity which is a successor to Tenant by acquisition, merger, or
consolidation of or with Tenant (herein a "Permitted Assignee").   Upon request
by Landlord, Tenant shall furnish to Landlord copies of its latest consolidated
annual report together with quarterly income statements and balance sheet to
date when such reports and financial statements have been publicly released.  No
assignment, subletting or other transfer, whether to a Permitted Assignee
consented to by Landlord or not or otherwise permitted hereunder shall relieve
the Tenant named herein of any liability hereunder for the obligations of the
"Tenant".  If an event of default occurs while the Leased Premises or any part
thereof are assigned or sublet, then Landlord, in addition to any other remedies
herein provided, or provided by law, may collect directly from such Transferee
all rents payable to the Tenant and apply such rent against any sum due Landlord
hereunder.  No such collection shall be construed to constitute a novation or a
releas of Tenant from the further performance of Tenant's obligations hereunder.

       (b)    Landlord shall have the continuing right at any time to sell or
convey the Leased Premises and Landlord's rights under this Lease, and nothing
herein contained shall be construed as restricting such rights of Landlord. In
the event Landlord should hereafter sell or convey the Leased Premises to a
third party or parties, such party or parties shall acquire the Leased Premises
subject to the terms and provisions of this Lease and shall be subrogated to all
of the rights and privileges of Landlord hereunder, and Landlord shall thereupon
be completely relieved and discharged from all duties and obligations herein
imposed upon Landlord which accrue after the effective date of such conveyance;
provided that such transferee of Landlord

                                       20
<PAGE>

shall have assumed all of Landlord's duties and obligations which accrue
under this Lease after such date.

       (c)    If this Lease is assigned to any person or entity pursuant to the
provisions of the Bankruptcy Code, 11 U.S.C. Section 101 et. seq. (the
"Bankruptcy Code"), any and all monies or other consideration payable or
otherwise to be delivered in connection with such assignment shall be paid or
delivered to Landlord, shall be and remain the exclusive property of Landlord
and shall not constitute property of Tenant or of the estate of Tenant within
the meaning of the Bankruptcy Code.  Any and all monies or other considerations
constituting Landlord's property under the preceding sentence not paid or
delivered to Landlord shall be held in trust for the benefit of Landlord and be
promptly paid or delivered to Landlord.

       (d)    Any person or entity to which this Lease is assigned pursuant to
the provisions of the Bankruptcy Code, shall be deemed, without further act or
deed, to have assumed all of the obligations arising under this Lease on and
after the date of such assignment.  Any such assignee shall upon demand execute
and deliver to Landlord an instrument confirming such assumption.

                                      ARTICLE 14

                                    ENVIRONMENTAL

       (a)    HAZARDOUS MATERIALS DEFINED.  As used in this Lease, the term
"Hazardous Materials" means and includes (i) any hazardous, toxic or dangerous
waste, substance or material, as defined for purposes of the Comprehensive
Environmental Response Compensation and Liability Act of 1980, as amended, the
Resource Conservation and Recovery Act of 1976, as amended, or any other
Applicable Laws applicable to the Leased Premises and establishing liability,
standards, or regulating or requiring action as to the industrial hygiene, use,
generation, treatment, discharge, spillage, storage, uncontrolled loss, seepage,
filtration, disposal, removal, or existence of a hazardous, toxic or dangerous
waste, substance or material (collectively, "Environmental Laws") and (ii) any
waste, substance or material which, even if not so regulated, is known to pose a
hazard to the health and safety of persons or property, specifically including,
without limitation, oil and petroleum products and by-products and asbestos.

       (b)     PROHIBITION OF HAZARDOUS MATERIALS/TENANT'S LIABILITY.  Except
for Hazardous Materials that are used only as an incidental part of Tenant's
day-to-day business operations and not as an integral part thereof (E.G., fuel
for forklifts and similar equipment, office supplies, cleaning solvents), or
handled or stored in connection with the ordinary courses of Tenant's business
(provided that any such Hazardous Materials are wholly contained in prepackaged
containers and not repackaged, opened or otherwise disturbed while at the Leased
Premises), Tenant may not, without Landlord's prior written consent, use, treat,
handle, store, generate, dispose of or release or cause or permit any Tenant
Party, to use, handle, store, generate, treat, dispose of or release, in, on,
under or from the Leased Premises any Hazardous Materials.  Landlord agrees not
to otherwise unreasonably withhold its consent to Tenant's handling or
temporarily storing Hazardous Materials at the Leased Premises in the normal and
ordinary course of the business of the "Tenant" named herein.  To the extent
that Landlord consents to any of the above, but without otherwise limiting any
of the above:

                                       21

<PAGE>

              (1)    Tenant covenants and agrees that it shall at its own
       expense procure, maintain in effect and comply with all conditions of any
       and all permits, licenses and other governmental and regulatory approvals
       required for Tenant's use of the Leased Premises and any operations or
       conduct of Tenant involving the use, handling, generation, treatment,
       storage, disposal, management or release of any Hazardous Materials
       including the posting of required Material Safety Data Sheets (copies of
       which are to be provided to Landlord).  Tenant shall cause any and all
       Hazardous Materials that are to be removed from the Leased Premises to be
       transported solely by duly licensed haulers and to duly licensed
       facilities for final disposal of such Hazardous Materials.  Tenant shall
       in all respects, handle, treat, deal with and manage any and all
       Hazardous Materials in, on, under or about the Leased Premises as a
       result of the actions, conduct or any part of the business operations of
       Tenant or any Tenant Party, in complete conformity with all Environmental
       Laws and prudent industry practices regarding the management of such
       Hazardous Materials.  All reporting obligations relating to Hazardous
       Materials in, on, under or about the Leased Premises as a result of the
       actions, conduct or any part of the business operations of Tenant or any
       Tenant Party, are solely the responsibility of Tenant.  Upon expiration
       or earlier termination of this Lease, Tenant covenants and agrees to
       cause all Hazardous Materials existing in, on, or under the Leased
       Premises to be removed from the Leased Premises and transported for use,
       storage or disposal in accordance and in compliance with all
       Environmental Laws.  In addition, and unless Landlord instructs Tenant
       otherwise, at the expiration of the Term, Tenant shall remove all
       fixtures which were placed on the Leased Premises by or on behalf of
       Tenant or a Tenant Party during the Term and which contain, have
       contained or are contaminated with, Hazardous Materials.  Tenant may not
       install any above or undergroundstorage tanks;

              (2)    Tenant shall immediately notify Landlord in writing of (a)
       any Tenant Release (hereinafter defined), (b) any enforcement, clean-up,
       removal or other governmental or regulatory action instituted, completed
       or threatened against Tenant, the Leased Premises, pursuant to any
       Environmental Laws; (c) any claim made or threatened by any person
       against Tenant, Landlord, the Leased Premises, relating to damage,
       contribution, cost recovery, compensation, loss or injury resulting from
       or claimed to result from any Hazardous Materials; and (d) any reports
       made to any environmental agency arising out of or in connection with any
       Hazardous Materials in, on or about or under the Leased Premises or with
       respect to any Hazardous Materials removed from the Leased Premises,
       including, any complaints, notices, warnings, reports or asserted
       violations in connection therewith.  Tenant shall also provide to
       Landlord, as promptly as possible, and in any event within five (5)
       business days after Tenant first received or sent the same, with copies
       of all claims, reports, complaints, notices, warnings or asserted
       violations relating in any way to the Leased Premises or Tenant's use
       thereof.  Tenant shall not take any remedial action in response to the
       presence of any Hazardous Materials in, on, about or under the Leased
       Premises, nor enter into any settlement agreement, consent, decree or
       other compromise in respect to any claims relating to or in any way
       connected with the Leased Premises without first notifying Landlord of
       Tenant's intention to do so and affording Landlord ample opportunity to
       appear, intervene or otherwise appropriately assert and protect
       Landlord's interest with respect thereto;

                                       22
<PAGE>

              (3)    Tenant shall indemnify and, at Landlord's option, defend
       (with counsel reasonably acceptable to Landlord), protect and hold
       Landlord and each of Landlord's officers, directors, partners, employees,
       agents, attorneys, successors and assigns free and harmless from and
       against any and all claims, liabilities, damages, costs, penalties,
       forfeitures, losses or expenses (including attorneys' fees) for death or
       injury to any person or damage to any property whatsoever (including
       water tables and atmosphere) arising or resulting in whole or in part,
       directly or indirectly, from the presence, release or discharge of
       Hazardous Materials in, on, under, upon or from the Leased Premises to
       the extent that such presence, release or discharge was caused or
       permitted by Tenant or a Tenant Party, or from the transportation or
       disposal of Hazardous Materials to or from the Leased Premises by a
       Tenant Party (herein, a "Tenant Release").  Tenant's obligations
       hereunder shall include, without limitation, and whether foreseeable or
       unforeseeable, all costs of any required or necessary repairs, clean-up
       or detoxification or decontamination of the Leased Premises and any other
       land contaminated or adversely effected by a Tenant Release and the
       presence and implementation of any closure, remedial action or other
       required plans in connection therewith, and shall survive the expiration
       of or early termination of this Lease;

              (4)    Landlord shall have the right from time to time, at its
       expense, to commission an environmental audit of the Leased Premises.  If
       such study or report correctly determines or concludes that a Tenant
       Release has occurred or that Tenant has breached any of its obligations
       under this Article 14, then, and without limitation of any other remedy
       Landlord may have hereunder,  Tenant shall reimburse the reasonable
       actual costs of the audit to Landlord on demand as additional Rent.

              (5)  Tenant shall execute affidavits, representations, and the
       like from time to time at Landlord's reasonable request concerning
       Tenant's actual knowledge and belief regarding the presence of Hazardous
       Materials in, on or under the Leased Premises.

       (c)    Landlord represents and warrants to Tenant that Landlord has not
stored, generated, used, disposed of, released or caused or permitted any other
party to store, generate, use, dispose of or release in or upon the Land any
Hazardous Materials in violation of Environmental Laws and to Landlord's current
actual knowledge, without duty of inquiry or investigation, no Hazardous
Materials are present on, under or about the Land in violation of Environmental
Laws except as may be disclosed in the environmental report dated March 9, 1999
and prepared by TERR-MAR, INC., which report Tenant acknowledges having
received.  Landlord makes no warranty or representations regarding the truth or
accuracy of such report.   Landlord shall indemnify, at Tenant's option, defend
(with counsel reasonably acceptable to Tenant), protect and hold Tenant harmless
from and against any and all claims, liabilities, damages, costs, penalties,
forfeitures, losses or expenses (including reasonable attorneys' fees) for death
or injury to any person or damage to any property whatsoever (including water
tables and atmosphere) arising or resulting in whole or in part, directly or
indirectly, from the presence, release or discharge of Hazardous Materials in,
on , under, upon or from the Land to the extent that such presence, release or
discharge was actually caused by Landlord or from the transportation or disposal
of Hazardous Materials to or from the Land by Landlord  (herein, a "Landlord
Release").  Landlord's obligations hereunder shall include, without limitation,
and whether foreseeable or unforeseeable, all costs of any required or necessary
repairs, clean-up or detoxification or decontamination of the Land and any other
land contaminated or adversely

                                       23
<PAGE>

effected by the Landlord Release and the presence and implementation of any
closure, remedial action or other required plans in connection therewith, and
shall survive the expiration of or early termination of this Lease.

       (d)    The respective covenants, rights and obligations of Landlord and
Tenant under this Article 14 shall survive the expiration or earlier termination
of this Lease.

                                      ARTICLE 15

                                 DEFAULT AND REMEDIES

       (a)    The following shall be deemed to be events of default by Tenant
under this Lease:

              (1)    Tenant shall fail to pay any installment of the Rent herein
       reserved when due, or any other payment or reimbursement to Landlord
       required herein when due, and such failure shall continue for a period of
       ten (10) days after receipt of written notice from Landlord; provided,
       however, that an event of default will occur without any obligation of
       Landlord to deliver any notice if Landlord has given Tenant written
       notice under this subparagraph on two (2) or more occasions during the
       twelve (12) month period preceding the current failure by Tenant to
       timely pay Rent (though Tenant in such instances is granted a five (5)
       day grace period from the date upon which the subject payment was due).

              (2)    Tenant abandons the Leased Premises.

              (3)    Tenant or any guarantor of Tenant's obligations hereunder
       shall file a petition or be adjudged bankrupt or insolvent under any
       applicable federal or state bankruptcy or insolvency law, or admit that
       it cannot meet its financial obligations as they become due; or a
       receiver or trustee shall be appointed for all or substantially all of
       the assets of Tenant or such guarantor; or Tenant or any guarantor of
       Tenant's obligations hereunder shall make a transfer in fraud of
       creditors or shall make an assignment for the benefit of creditors; or

              (4)    Tenant shall fail to discharge or bond around to Landlord's
       satisfaction any lien filed against the Leased Premises, or any portion
       thereof, in violation of Article 40 hereof, within ten (10) days after
       receiving notice thereof.

              (5)    Tenant shall fail to comply with any other term, provision
       or covenant of this Lease, other than the payment of Rent; and such other
       failure is not cured within thirty (30) days of receipt of written notice
       from Landlord specifying the default;

              (6)    Any of the representations and warranties of Tenant set
       forth herein shall be untrue in any material respect on the date of this
       Lease or at any time during the Term.

       (b)    Upon the occurrence of any event of default set forth in this
Lease, Landlord shall have the option to pursue any one or more of the remedies
set forth herein without any additional notice or demand.

                                       24
<PAGE>

              (1)    Without declaring the Lease terminated, Landlord may enter
       upon and take possession of the Leased Premises, by picking or changing
       locks if necessary, and lock out, expel or remove Tenant and any other
       person who may be occupying all or any part of the Leased Premises
       without being liable for any claim for damages, and relet the Leased
       Premises on behalf of Tenant and receive the rent derived by reason of
       the reletting.  Tenant agrees to pay Landlord on demand any deficiency
       that may arise by reason of any reletting of the Leased Premises,
       further, Tenant agrees to reimburse Landlord for any expenditures made by
       it in order to relet the Leased Premises, including, but not limited to,
       leasing commissions, moving allowances, lease incentives, remodeling and
       repair costs or in performing any obligations of Tenant hereunder. Tenant
       agrees to reimburse Landlord on demand for any reasonable expenses which
       Landlord may incur in effecting compliance with Tenant's obligations
       under this Lease; further, Tenant agrees that Landlord shall not be
       liable for any damages resulting to Tenant from effecting compliance with
       Tenant's obligations under this Lease caused by the negligence of
       Landlord or otherwise.

              (2)    Landlord may terminate this Lease, in which event Tenant
       shall immediately surrender the Leased Premises to Landlord, and if
       Tenant fails to surrender the Leased Premises, Landlord may, without
       prejudice to any other remedy which it may have for possession or
       arrearages in Rent, enter upon and take possession of the Leased
       Premises, by picking or changing locks if necessary, and lock out, expel
       or remove Tenant and any other person who may be occupying all or any
       part of the Leased Premises without being liable for any claim for
       damages.  Tenant agrees to pay on demand the amount of all loss and
       damage which Landlord may suffer by reason of the termination of this
       Lease under this section, including without limitation, loss and damage
       due to the failure of Tenant to maintain and or repair the Leased
       Premises as required hereunder and/or due to the inability to relet the
       Leased Premises on terms satisfactory to Landlord or otherwise, and any
       reasonable expenditures made by Landlord in order to relet the Leased
       Premises, including, but not limited to, leasing commissions, moving
       allowances, lease incentives, and remodeling and repair costs.  In
       addition, upon termination Landlord may collect from Tenant, as damages
       and not as a penalty, the present value (using a discount rate of seven
       percent (7%) of all future Rents required to be paid under this Lease
       (had it not been terminated) from the date Landlord terminates the Lease
       until the expiration of the Term less the fair market rental value of the
       Leased Premises over such term.  Notwithstanding anything contained in
       this Lease to the contrary, this Lease may be terminated by Landlord only
       by mailing or delivering written notice of such termination to Tenant,
       and no other act or omission of Landlord shall be construed as a
       termination of this Lease.

              (3)    In the event that Landlord exercises its remedy to lock out
       Tenant in accordance with any provision of this Lease, Tenant agrees that
       no notice shall be required to be posted by Landlord on any door to the
       Leased Premises (or elsewhere) disclosing the reason for such action or
       any other information, and that Landlord shall not be obligated to
       provide a key to the changed lock to Tenant unless Tenant shall have
       first:

                     (I)    brought current all payments due to Landlord under
              this Lease (unless Landlord has permanently repossessed the Leased
              Premises or terminated

                                       25
<PAGE>

              this Lease, in which event payment of all past due amounts shall
              not obligate Landlord to provide a key);

                     (II)   fully cured and remedied to Landlord's satisfaction
              all other defaults of Tenant under this Lease (unless Tenant has
              abandoned or vacated the Leased Premises, in which event Landlord
              shall not be obligated to provide the new key to Tenant under any
              circumstances); and

                     (III)  provided Landlord with additional security deposit
              and assurances satisfactory to Landlord that Tenant intends to and
              is able to meet and comply with its future obligations under this
              Lease, both monetary and nonmonetary.  Landlord may, upon written
              request by Tenant, at Landlord's convenience, upon receipt by
              Landlord of an amount necessary to reimburse itself for time and
              expense in providing such service, and upon Tenant's execution and
              delivery of such waivers and indemnifications as Landlord may
              require at Landlord's option either:

                     (i)    escort Tenant or its specifically authorized
                     employees or agents to the Leased Premises to retrieve
                     personal belongings of Tenant's employees and property of
                     Tenant that is not subject to a security interest provided
                     in this Lease, or

                     (ii)   obtain from Tenant a list of such property and
                     arrange for such items to be removed from the Leased
                     Premises and made available to Tenant at such place at such
                     time as Landlord may designate, provided however, that if
                     Landlord elects option (ii), then Tenant shall be required
                     to pay in cash in advance to Landlord the estimated costs
                     that Landlord may incur upon moving and storage charges
                     theretofore incurred by Landlord with respect to such
                     property.

              (4)    THE PROVISIONS OF THIS ARTICLE 15 OVERRIDE AND SUPERSEDE
       ARTICLE 93.002 OF THE TEXAS PROPERTY CODE TO THE EXTENT OF ANY CONFLICT.

              (5)    Tenant hereby expressly waives any and all rights of
       redemption granted by or under any present or future Applicable Laws in
       the event of Tenant being evicted or dispossessed for any cause, or in
       the event of Landlord obtaining possession of the Leased Premises by
       reason of  the violation by Tenant of any of the covenants and conditions
       of this Lease or otherwise.

              (6)     No right or remedy herein conferred upon or reserved to
       Landlord is intended to be exclusive of any other right or remedy, and
       each and every right and remedy shall be cumulative and in addition to
       any other right or remedy given hereunder or now or hereafter existing at
       law or in equity or by statute.  In addition to the other remedies
       provided in this Lease, Landlord shall be entitled, to the extent
       permitted by Applicable Laws, to injunctive relief in case of the
       violation, or attempted or threatened violation, of any of the covenants,
       agreements, conditions or provisions of this Lease, or to a decree
       compelling performance of any of the covenants, agreements, conditions or

                                       26
<PAGE>

       provisions of this Lease, or to any other remedy now or hereafter allowed
       to Landlord at law or in equity.  Tenant shall indemnify and hold
       Landlord harmless from any and all actual costs, expenses (including
       reasonable attorneys' fees), claims and causes of action arising from or
       in connection with any default by Tenant under this Lease.

              (7)    In the event that Tenant or any guarantor of Tenant's
       obligations hereunder is the subject of any insolvency, bankruptcy,
       receivership, dissolution, reorganization or similar proceeding, federal
       or state, voluntary or involuntary, under any present or future law or
       act, Landlord is entitled to the automatic and absolute lifting of any
       automatic stay as to the enforcement of its remedies under this Lease,
       including specifically the stay imposed by Section 362 of the United
       States Federal Bankruptcy Code, as amended.  Tenant hereby consents to
       the immediate lifting of any such automatic stay, and will not contest
       any motion by Landlord to lift such stay.  Tenant expressly acknowledges
       that the Leased Premises is not now and will never be necessary to any
       plan or reorganization of any type.

              (8)    To the extent required under Applicable Laws, Landlord
       agrees to use reasonable efforts to mitigate any of its damages arising
       from the occurrence of an event of default by Tenant involving Tenant's
       abandonment of  the Leased Premises.  Tenant agrees that this requirement
       to use reasonable efforts will have been satisfied by Landlord: (i)
       notifying its leasing agent of the availability of the Leased Premises
       for rent, and (ii) showing the Leased Premises to prospective tenants who
       request to see the Leased Premises and to prospective tenants referred to
       Landlord by Tenant.  In no event shall Landlord be deemed to have failed
       to mitigate its damages if Landlord chooses to lease to a prospective
       tenant some or all of other space in other property owned or controlled
       by Landlord, rather than some or all of the Leased Premises or if
       Landlord rejects a proposed new tenant because of the credit, reputation
       or proposed use of said proposed Tenant is not satisfactory to Landlord
       in its sole discretion.

                                      ARTICLE 16

                                    EMINENT DOMAIN

       (a)    If any portion of the Leased Premises is taken for any public or
quasi-public use under governmental law, ordinance or regulation, or by right of
eminent domain, or by private purchase in lieu thereof and the taking prevents
or materially interferes with the use of the Leased Premises for the purpose for
which it was leased to Tenant or causes the Leased Premises to not comply with
Applicable Laws, then within ten (10) days after such taking Landlord shall
notify Tenant as to whether or not Landlord will reconstitute the Leased
Premises such that it once again complies with Applicable Laws or replicate the
Leased Premises to substantially the condition it was in prior to such taking,
as applicable, within one hundred fifty (150) days after such taking.  If
Landlord notifies Tenant that it will not replicate or reconstitute the Leased
Premises, as applicable, or otherwise fails to complete the reconstitution or
replication within one hundred fifty (150) days after such taking, then this
Lease shall terminate and the Rent shall be abated during the unexpired portion
of this Lease, effective as of the date of such taking.  In the event any taking
does not materially interfere with the use of the Leased Premises  for the
purposes for which it was used by Tenant, this Lease shall not terminate, but
the Base Rent payable hereunder during the unexpired portion of this Lease shall
be reduced based upon the

                                       27
<PAGE>

percentage reduction of the square feet in the Building caused by the taking
or as is otherwise fair and reasonable under all of the circumstances.   Rent
will not otherwise be reduced or abated.

       (b)    The provisions of this Article 16 shall only apply to the
Improvements, and in no event shall Landlord be obligated to reconstruct any
improvements constructed by Tenant.

       (c)    Landlord shall be entitled to receive the entire price or award
from any such sale, taking or condemnation, whether applicable to the Land,
Building, or other real estate interests.  Tenant hereby assigns all its
interest in such award to Landlord and Tenant waives any right Tenant has or may
have under present or future law to receive any award of damages for its
interest in the Leased Premises or this Lease; provided, however, that Tenant
shall have the right to separately claim and receive any award which may be
allowed to Tenant for Tenant's trade fixtures, loss of business and moving
expenses, provided the same do not reduce Landlord's award.

                                      ARTICLE 17

                                  ACCESS TO PREMISES

       Tenant shall permit Landlord and its agents to enter into and upon the
Leased Premises at all reasonable times during normal business hours and with at
least 48-hours written notice, except in an emergency situation, in accordance
with the provisions hereof, for the purpose of making repairs, alterations, or
additions to any other portion of the Leased Premises, including the erection
and maintenance of such scaffolding, canopy, fences and props as may be required
or for the purpose of posting notices of nonliability for alterations, additions
or repairs. Landlord shall conduct its activities in the Leased Premises in a
manner that will cause the least possible interference with Tenant's business
operations. Tenant shall permit Landlord, at any time within one hundred eighty
(180) days prior to the expiration of this Lease, to place upon the Leased
Premises usual or ordinary "For Lease" signs, and during such one hundred eighty
(180) day period Landlord or its agents may, during normal business hours, with
24-hours advance written notice, enter upon the Leased Premises and exhibit same
to prospective Tenants.

                                      ARTICLE 18

                                SUBORDINATION OF LEASE

       Conditioned upon the beneficiary of any mortgages and/or deeds of trust
now existing or hereafter placed upon the Leased Premises entering into a
Subordination, Non-disturbance and Attornment Agreement (herein an "SNDA") with
Tenant in which such beneficiary agrees not to disturb the possession and other
rights of Tenant under this Lease so long as Tenant is not in default in the
performance of its obligations hereunder, and, in the event of the acquisition
of title by such beneficiary through foreclosure proceedings or a deed in lieu
of foreclosure, to accept Tenant as tenant of the Leased Premises under the
terms and conditions of this Lease, Tenant accepts this Lease subject and
subordinate to any mortgages and/or deeds of trust now or hereafter constituting
a lien or charge upon the Leased Premises, provided, however, that if the
mortgagee, trustee, or holder of any such mortgage or deed of trust elects to
have Tenant's interest in this Lease superior to any such instrument, then by
notice to Tenant from such

                                       28
<PAGE>

mortgagee, trustee or holder, this Lease shall be deemed superior to such
lien, whether this Lease was executed before or after said mortgage or deed
of trust.  Subject to the foregoing, Tenant, at any time hereafter on demand,
shall execute any instruments, releases or other documents that may be
required by any mortgagee for the purpose of subjecting and subordinating
this Lease to the lien of any such mortgage or deed of trust. Upon Landlord's
request, Tenant shall execute any SNDA submitted to Tenant if the form
thereof is a type of form that is customarily given by institutional lenders
and otherwise complies with this Article 18.

                                      ARTICLE 19

                                 ESTOPPEL CERTIFICATE

       Tenant agrees, at any time and from time to time within ten (10) business
days after requested by Landlord, to execute and deliver to Landlord a written
estoppel certificate in the form of that attached hereto as EXHIBIT "E" or in
such other reasonable form as may be required by Landlord.

                                      ARTICLE 20

                                        WAIVER

       No covenant or condition of this Lease to be performed by Tenant and/or
Landlord can be waived except by the written consent of Landlord and/or Tenant,
and forbearance or indulgence by Landlord or Tenant in any regard whatsoever
shall not constitute a waiver of the covenant or condition to be performed by
Tenant and/or Landlord to which the same may apply; and until complete
performance by Tenant or Landlord of said covenant or condition, Landlord and/or
Tenant shall be entitled to invoke any remedy available to it under this Lease,
despite said forbearance or indulgence. The subsequent acceptance of Rent
hereunder by Landlord shall not be deemed to be a waiver of any preceding breach
by Tenant of any term, covenant or condition of this Lease, other than the
failure of Tenant to pay the particular Rent so accepted, regardless of
Landlord's knowledge of such preceding breach at the time of acceptance of such
Rent.

                                      ARTICLE 21

                                   TIME OF ESSENCE

       Time shall be of the essence with respect to the time frames provided for
herein for the performance of obligations and providing any notices required or
permitted hereby.

                                      ARTICLE 22

                                   QUIET ENJOYMENT

       Landlord agrees that so long as Tenant is not in default hereunder Tenant
shall have the quiet enjoyment of the Leased Premises without hindrance on the
part of Landlord, and Landlord will defend Tenant in the peaceful and quiet
enjoyment of the Leased Premises (other than those claiming by, through, or
under Tenant).

                                       29

<PAGE>

                                   ARTICLE 23

                            ATTORNEY FEES AND INTEREST

       In the event either party hereto shall institute suit against the other
with reference to the terms and conditions of this Lease, the prevailing party
shall be entitled to reasonable attorney's fees and court costs.

                                   ARTICLE 24

                                     SIGNS

       Any signage or monuments Tenant desires for the Leased Premises shall be
subject to Landlord's written approval and shall be submitted to Landlord prior
to the Commencement Date of this Lease.  Tenant shall repair, paint and/or
replace the building facia surface to which its signs are attached upon vacation
of the Leased Premises, or the removal or alteration of its signage.  Tenant
shall not (i) make any changes to the exterior of the Building, (ii) install any
exterior lights, decorations, balloons, flags, pennants, banners or painting, or
(iii) erect or install any signs, windows or door lettering, placards,
decorations or advertising media of any type which can be viewed from the
exterior of the Building, without Landlord's prior written consent.  All
monuments, signs, decorations, advertising media, blinds, draperies and other
window treatment or bars or other security installations visible from outside
the Building shall conform in all respects to the criteria established by
Landlord and Applicable Laws.  Provided that Landlord shall have first approved
of same as provided above, Landlord shall reimburse to Tenant the cost of
approved Building and monument signage up to a maximum one-time cost of $15,000.

                                   ARTICLE 25

                               SERVICE OF NOTICE

       Any notice or demand which either party hereby may desire to serve upon
the other in furtherance of any provisions of this Lease shall be in writing and
shall be sufficiently served if the same shall be sent by Federal Express or
other overnight courier service, or shall be sent United States Mail, postage
prepaid, certified or registered, or shall be sent by facsimile transmission
(provided that the sending telecopier generates an electronic confirmation of
receipt), addressed, in the instance of Landlord, as follows:

                            Valley View Business Center, Ltd.
                            c/o Proterra Properties, Inc.
                            Attn:  Ms. Beverly Eversole
                            8214 Westchester Drive, Suite 730
                            Dallas, Texas 75225
                            Telephone: (214) 365-9944
                            Telecopy: (214) 365-9920

or to such other address as Landlord shall designate by written notice to
Tenant, and in the instance of Tenant, addressed as follows:

                                       30
<PAGE>

                            United Stationers Supply Co.
                            2200 East Golf Road
                            Des Plaines, Illinois 60016-1267
                            Attention:  Law Department
                            Telephone:(847) 699-5000, x 2113
                            Telecopy: (847) 699-0891

or such other address as Tenant shall designate by written notice to Landlord.

Such notices shall be deemed to have been served at the time of the actual
receipt or refusal of delivery thereof.

                                   ARTICLE 26

                                    CAPTIONS

       The various headings and numbers herein and the grouping of the
provisions of this Lease into separate articles and paragraphs are for the
purpose of convenience only and shall not be considered a part hereof.

                                   ARTICLE 27

                                     TIME

       Time is of the essence of this Lease and each and all of its provisions.

                                   ARTICLE 28

                             SUCCESSORS AND ASSIGNS

       This Lease shall inure to the benefit of and be binding upon the heirs,
executors, administrators, successors and assigns of Landlord and Tenant;
provided, however, that nothing herein shall impair any of the provisions herein
above set forth inhibiting assignment or subletting without the written consent
of Landlord.

                                   ARTICLE 29

                               PARTIAL INVALIDITY

       If any term, covenant, condition or provision of this Lease or the
application thereof to any person or circumstance shall, to any extent, be
invalid or unenforceable, the remainder of this Lease shall not be affected
thereby and each term, covenant, condition and provision of this Lease shall be
valid and be enforced to the fullest extent permitted by law.

                                       31
<PAGE>

                                   ARTICLE 30

                                  FORCE MAJEURE

       As used in this Lease, "Force Majeure" shall mean a delay caused by
reason of fire, acts of God, unreasonable delays in transportation, embargo,
weather (I.E., rain and rain related conditions, humidity, temperature, wind,
etc.), strike, other labor disputes, governmental preemption of priorities or
other controls in connection with a national or other public emergency,
governmental delays in permitting, delays caused by any governmental disapproval
of, or required revisions to, the Construction Documents, Improvements or
shortages of fuel, supplies or labor or any similar cause not within Landlord's
or Tenant's  reasonable control.  Neither Landlord nor Tenant shall be held
responsible for delays in the performance of its obligations hereunder caused by
Force Majeure, and such delays shall be excluded from the computation of the
time allowed for the performance of such obligations.  It is expressly agreed
that the number of delay days may include not only the day or days upon which
the event of Force Majeure occurred but the number of days thereafter that work
could not resume due to the occurrence of such event of Force Majeure.  By way
of example only, rain on a Sunday, which is not scheduled as a normal work day,
may prevent work for several days thereafter due to mud conditions.  No event of
Force Majeure shall excuse either party from its monetary obligations hereunder
nor serve to delay any such payment. Without limitation, Tenant's obligation to
timely pay Rent is not affected by events of Force Majeure.

                                   ARTICLE 31

                                   AMENDMENTS

       This Lease shall not be altered, amended, or modified in any way or
terminated except by an instrument in writing, executed by both parties.

                                   ARTICLE 32

                             PERSONAL PROPERTY TAXES

       During the Term, Tenant shall pay prior to delinquency all taxes assessed
against and levied upon fixtures, furnishings, equipment and all other personal
property of Tenant contained in the Leased Premises; and, when possible, Tenant
shall cause said fixtures, furnishings, equipment and other personal property to
be assessed and billed separately from the Leased Premises.  If any such taxes
are levied or assessed against Landlord or Landlord's property and  Landlord
pays the same, Tenant shall pay to Landlord such taxes upon demand.

                                       32
<PAGE>

                                   ARTICLE 33

                               LEGAL CONSTRUCTION

       THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF TEXAS AND THE LAWS OF THE UNITED STATES OF AMERICA AS APPLICABLE TO
TRANSACTIONS WITHIN THE STATE OF TEXAS.  TENANT HEREBY SUBMITS TO THE
JURISDICTION OF ANY COURT OF COMPETENT JURISDICTION SITTING IN DALLAS COUNTY,
TEXAS.  TO THE MAXIMUM EXTENT PERMITTED BY LAW, TENANT AND LANDLORD HEREBY
EXPRESSLY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY ACTION, CAUSE OF ACTION,
CLAIM, DEMAND, OR PROCEEDING ARISING UNDER OR WITH RESPECT TO THIS LEASE, OR IN
ANY WAY CONNECTED WITH, RELATED TO, OR INCIDENT TO THE DEALINGS OF LANDLORD AND
TENANT WITH RESPECT TO THIS LEASE, IN EACH CASE WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE.  TO THE
MAXIMUM EXTENT PERMITTED BY LAW, TENANT AND LANDLORD HEREBY AGREE THAT ANY SUCH
ACTION, CAUSE OF ACTION, CLAIM, DEMAND OR PROCEEDING SHALL BE DECIDED BY A COURT
TRIAL WITHOUT A JURY AND THAT TENANT OR LANDLORD MAY FILE A COPY OF THIS LEASE
WITH ANY COURT OR OTHER TRIBUNAL AS WRITTEN EVIDENCE OF THE CONSENT OF TENANT
AND LANDLORD TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

                                   ARTICLE 34

                                   NET LEASE

       This Lease is a net lease, and except as otherwise expressly provided
herein, Tenant shall pay all costs and other expenses of every character,
foreseen or unforeseen, for the payment of which Tenant is or shall become
liable by reason of its estate or interest in the Leased Premises, or which are
connected with or arise out of the possession, use, occupancy, maintenance or
repair of the Leased Premises or any portion thereof by Tenant. Tenant's
obligation to pay Rent is an obligation and covenant independent of any
obligation or covenant of Landlord hereunder. Rent and any and all other amounts
payable by Tenant hereunder shall be paid by Tenant without notice or demand,
and without any set off, deduction, abatement, suspension, deferment, diminution
or reduction of any kind for any reason.

                                   ARTICLE 35

                     LIMITATION OF LANDLORD'S PERSONAL LIABILITY

       Notwithstanding any other provision in this Lease to the contrary, Tenant
specifically agrees to look solely to Landlord's interest in the Leased Premises
and in this Lease for the recovery of any judgment from Landlord, it being
agreed that Landlord shall never be personally liable for any such judgment.

                                       33
<PAGE>

                                   ARTICLE 36

                      LANDLORD'S REPRESENTATIONS AND WARRANTIES

       Landlord represents and warrants to Tenant, as of the date hereof and as
of the Commencement Date, that, to its knowledge:

       (a)    Landlord does not have any knowledge of, or reason to believe that
there are grounds for, the filing of a lien against the Leased Premises, other
than the lien for the construction loan.

       (b)    Landlord does not have knowledge of any pending condemnation or
similar proceeding affecting the Leased Premises or any portion thereof.

       (c)    Landlord does not have any knowledge of any legal actions, suits,
or other legal or administrative proceedings, pending or threatened against the
Leased Premises or Landlord nor that any such action, suit, proceeding or claim
has been threatened or asserted against Landlord or the Leased Premises.

       (d)    Landlord has granted no leases or license, nor created any
tenancies, affecting the Leased Premises.

       (e)    Landlord does not have any knowledge of any uncured violations of
federal, state or municipal laws, ordinances, orders, regulations, or
requirements affecting any portion of the Leased Premises.

       (f)    The Leased Premises have adequate legal access to abutting public
highways, streets and roads.

       (g)    Landlord does not have any knowledge of any pending or threatened
governmental or private proceedings which would impair or result in the
termination of access from the Leased Premises to abutting public highways,
streets and roads.

       Landlord's above representations shall survive for a period of one (1)
year from the Commencement Date.

                                   ARTICLE 37

                              YEAR 2000 COMPLIANCE

       (a)    Landlord represents, warrants and covenants to Tenant that Tenant
will not incur any lost time costs or other similar damages on account of
Landlord's not being able to complete the construction of the Improvements in
accordance with the approved plans and specifications on or before the required
completion date as a result of a failure by Landlord to be "Year 2000
Compliant".  This representation shall expire and thereafter be of no further
force and effect as of the Commencement Date.

                                       34
<PAGE>

       (b)    Tenant represents, warrants and covenants to Landlord that
Landlord will not suffer any damages or liabilities and that Tenant's ability
to pay Rent to Landlord as required under this Lease will not be prevented or
delayed as a result of a failure by Tenant to be "Year 2000 Compliant".

       (c)    As used in this Article 37, the term "Year 2000 Compliant"
means that Landlord's, with respect to Article 37(a), and Tenant's, with
respect to Article 37(b), computer software and hardware and other data
sensitive technology systems are designed to be used prior to, during and
after the Gregorian calendar year 2000 A.D. and will operate during each such
time period without error relating to date data, specifically including any
error relating to, or the product of, date data which represents or
references different centuries or more than one century.

                                   ARTICLE 38

                              REPRESENTATIONS OF TENANT

       Tenant represents, warrants and covenants that it is now in a solvent
condition; that no bankruptcy or insolvency proceedings are pending or
contemplated by or against Tenant or any guarantor of Tenant's obligations
under this Lease; that all reports, statements and other data furnished by
Tenant to Landlord in connection with this Lease are true and correct in all
material respects; that the execution and delivery of this Lease by Tenant
does not contravene, result in a breach of, or constitute a default under any
contract or agreement to which Tenant is a party or by which Tenant may be
bound and does not violate or contravene any law, order, decree, rule or
regulation to which Tenant is subject; and that there are no judicial or
administrative actions, suits, or proceedings pending or threatened against
or affecting Tenant or any guarantor of Tenant's obligations under this
lease.  If Tenant is a corporation, limited liability company or partnership,
each of the persons executing this lease on behalf of Tenant represents and
warrants that Tenant is duly organized and existing, is qualified to do
business in the state in which the Leased Premises are located, has full
right and authority to enter into this Lease, that the persons signing on
behalf of Tenant are authorized to do so by appropriate corporate, company or
partnership action and that the terms, conditions and covenants in this Lease
are enforceable against Tenant.  If Tenant is a corporation, limited
liability company or partnership, Tenant, upon Landlord's request, will
deliver evidence satisfactory to Landlord that the execution and delivery of
this Lease has been duly authorized and properly executed.

                                   ARTICLE 39

                              LANDLORD'S CONDITIONS

       (a)    Landlord has informed Tenant that Landlord currently is under
contract or is negotiating to purchase the Land.  If the date of this Lease
occurs prior to the date Landlord obtains title to the Land, then Landlord's
obligations under this Lease are conditioned upon it acquiring title to the Land
on or prior to August 30, 1999.  If Landlord has not acquired the Land by such
date and the parties do not agree otherwise in writing, then this Lease shall
automatically terminate.

                                       35
<PAGE>

       (b)    Landlord's obligations hereunder are further conditioned upon
Landlord obtaining final permits and approvals from applicable authorities for
the Construction Documents and for the construction of all of the Improvements
pursuant thereto.

                                   ARTICLE 40

                                MECHANICS' LIENS

       Tenant will not permit any mechanic's or materialman's lien(s) or
other lien to be placed upon the Leased Premises or the Building and nothing
in the Lease shall be deemed or construed in any way as constituting the
consent or request of Landlord, express or implied, by inference or
otherwise, to any person for the performance of any labor or the furnishing
of any materials to the Leased Premises, or any part that would give the rise
to any mechanic's or materialman's or other lien against the Leased Premises.
In any event any such lien is attached to the Leased Premises, then, in
addition to any other right or remedy of Landlord, Landlord may, but shall
not be obligated to, obtain the release or otherwise discharge the same.  Any
amount paid by Landlord for any of the aforesaid purposes shall be paid by
Tenant to Landlord on demand as additional Rent.

                                   ARTICLE 41

                                    BROKERS

       (a)    Tenant represents and warrants that, except for Grubb & Ellis
Company ("Broker"), Tenant has not dealt with any broker, agent or other person
in connection with this transaction and that, except for Broker, no broker,
agent or other person brought about this transaction through the acts of or
employment by Tenant, and, except with respect to any commission or fee owed to
Broker, Tenant agrees to indemnify and hold Landlord harmless from and against
any claims by any broker, agent or other person claiming a commission or other
form of compensation by virtue of having dealt with Tenant with regard to this
leasing transaction.

       (b)    Landlord represents and warrants that, except for Broker,
Landlord has not dealt with any broker, agent or other person in connection
with this transaction and that, except for Broker, no broker, agent or other
person brought about this transaction through the acts of or employment by
Landlord. Landlord has agreed to pay Broker a commission pursuant to a
separate written agreement between Landlord and Broker, and Landlord agrees
to indemnify and hold Tenant     harmless from and against any claims by
Broker or any broker, agent or other person claiming a commission or other
form of compensation by virtue of having dealt with Landlord with regard to
this leasing transaction.

                                       36
<PAGE>

                                      ARTICLE 42

                                      RECORDING

       Tenant may not record this Lease or any memorandum thereof.

                                      ARTICLE 43

                                      DISCLAIMER

       EXCEPT FOR LANDLORD'S OBLIGATION TO COMPLETE THE IMPROVEMENTS AND THE
PUNCH LIST ITEMS, TENANT ACKNOWLEDGES AND AGREES THAT LANDLORD HAS NOT MADE ANY
REPRESENTATIONS, AGREEMENTS OR PROMISES WITH RESPECT TO THE CONDITION OF THE
LEASED PREMISES, INCLUDING THE ENVIRONMENTAL CONDITION OF THE LAND, OR THEIR
SUITABILITY OF THE LEASED PREMISES FOR ANY PURPOSE OF TENANT AND THAT, EXCEPT
FOR LANDLORD'S OBLIGATION TO COMPLETE THE IMPROVEMENTS AND THE PUNCH LIST ITEMS,
LANDLORD HAS MADE NO PROMISES TO ALTER, REMODEL OR IMPROVE OR REPAIR THE LAND,
THE IMPROVEMENTS OR ANY PORTION THEREOF, EXCEPT FOR LANDLORD'S EXPRESS
WARRANTIES CONTAINED IN THIS LEASE, AND TENANT ACCEPTS THE LEASED PREMISES IN
ITS "AS IS", "WHERE IS" CONDITION AND "WITH ALL FAULTS".  EXCEPT FOR LANDLORD'S
EXPRESS WARRANTIES CONTAINED IN THIS LEASE, LANDLORD HEREBY DISCLAIMS ANY AND
ALL REPRESENTATIONS, INCLUDING IMPLIED REPRESENTATIONS, AND SPECIFICALLY
INCLUDING, WITHOUT LIMITATION, ANY REPRESENTATION REGARDING THE LEASED PREMISES'
HABITABILITY, REPAIR, WORKMANSHIP OR SUITABILITY FOR ANY INTENDED PURPOSE.
TENANT SHALL MAKE, AND HEREBY REPRESENTS AND WARRANTS TO LANDLORD THAT IT HAS
MADE, ITS OWN DETERMINATIONS AS TO THE SUITABILITY OF THE LEASED PREMISES FOR
ITS INTENDED USE.  BY ENTERING INTO THIS LEASE, TENANT REPRESENTS AND WARRANTS
THAT IT HAS INVESTIGATED AND SATISFIED ITSELF AS TO WHETHER OR NOT APPLICABLE
LAWS PERMIT ITS INTENDED USE OF THE LEASED PREMISES AND THAT TENANT IS RELYING
SOLELY UPON SUCH INVESTIGATIONS, AND NOT UPON ANY REPRESENTATIONS OF LANDLORD,
IN ENTERING INTO THIS LEASE.

                                      ARTICLE 44

                                   EXPANSION OPTION

       Landlord hereby grants to Tenant the right and option to expand the
Building and to extend the Term, upon and subject to the following terms and
conditions:

       (a)    EXPANSION OPTION.  At any time within the three (3) year period
following the Commencement Date, Tenant shall have the right and option (the
"Expansion Option") to cause Landlord to expand the Building onto the land
adjacent to the Land and described on Exhibit "F"

                                       37
<PAGE>

attached hereto and made a part hereof (the "Expansion Land") by written
notice to Landlord (the "Option Notice") that Tenant elects to have Landlord
expand the Building in accordance with the provisions of this Article 44.
The Option Notice shall also contain the number of square feet by which
Tenant desires to expand the Building (the "Expansion Improvements"),
provided that the Expansion Improvements shall not be less than 100,000
square feet nor more than 140,500 square feet with not more than ten percent
(10%) being allocated for office space.  The Expansion Improvements shall be
consistent with and, where practical, substantially similar in design,
construction, appearance, materials and quality to the Building.  If Tenant
fails to give the Option Notice on or before the third (3rd) anniversary of
the Commencement Date, the Expansion Option shall be null and void and of no
further force and effect.

       (b)    PLANS AND SPECIFICATIONS; BUDGET.  If Tenant properly exercises
the Expansion Option, then, as soon as reasonably possible after receipt of the
Option Notice, Landlord shall cause an architect licensed in the State of Texas
to prepare preliminary plans and specifications for the construction of the
Expansion Improvements.  Landlord shall deliver such preliminary plans and a
preliminary budget ("Preliminary Plans and Budget") to Tenant for its approval.
Upon approval of the Preliminary Plans and Budget by Tenant, Landlord shall
cause the architect to prepare complete and final construction drawings and
specifications including, without limitation, site plans, civil engineering
plans, floor plans, elevation plans, plumbing, electrical and mechanical plans
and detailed specifications as may be necessary in Landlord's judgement
(collectively, the "Expansion Plans").  Landlord shall deliver the Expansion
Plans, and any updated project budget, to Tenant for its review and approval.
Following Tenant's approval of the Expansion Plans, Landlord shall deliver its
final estimate of the Expansion Cost (as hereafter defined) for the construction
of the Expansion Improvements (the "Final Budget") to Tenant for approval or
disapproval.

Tenant shall have ten (10) business days to deliver written approval or
disapproval of each of the Preliminary Plans and Budget, the Expansion Plans and
the Final Budget following receipt of each such item.  If disapproved, Tenant
shall state with specificity the reasons for disapproval.  If Tenant fails to
notify Landlord of its disapproval of any of the foregoing items within such ten
(10) days after receipt of the same, Tenant shall be deemed to have disapproved
such item.  In the event that Tenant disapproves in writing the Preliminary
Plans and Budget, the Expansion Plans or the Final Budget and Landlord and
Tenant are unable to agree on revisions within thirty (30) calendar days after
Tenant's initial express written disapproval, or, in any event, if the
Preliminary Plans and Budget, the Expansion Plans and the Final Budget are not
finally approved by Tenant in writing by the date that is ninety (90) days after
the date that Tenant exercises the Expansion Option, then either Landlord or
Tenant shall have the option to terminate Tenant's Expansion Option upon written
notice to the other whereupon this Article 44 shall be null and void, except
that Tenant shall be obligated to reimburse Landlord for Landlord's reasonable
out-of-pocket expenses incurred in connection with the preparation of the
Preliminary Plans and Budget, the Expansion Plans and the Final Budget.  Upon
approval, or deemed approval, by Tenant of the Expansion Plans and the Final
Budget, Tenant's Expansion Option shall be irrevocable.

       (c)    COSTS INCLUDED IN FINAL BUDGET.  The Final Budget shall represent
Landlord's good faith estimate of the Expansion Cost.  The "Expansion Cost" is
the total of all hard costs and soft costs incurred by Landlord to design and
construct the Expansion Improvements, including, but not limited to:  (1)
architectural fees and expenses; (2) construction costs including labor,

                                       38
<PAGE>

material costs, builder's overhead, profit and contingency; (3) a development
fee to Landlord of eight percent (8%) of all the other Expansion Costs; (4)
temporary utility costs; (5) legal fees and costs; (6) engineering and
testing fees and costs; (7) permit and approval fees and costs; (8) builder's
risk and liability insurance; (9) leasing brokerage commissions; (10) loan
costs, fees, and interest to the Expansion Completion Date, or in the absence
of such loan, imputed interest to Landlord at one percent over the prime rate
then quoted by The Wall Street Journal, on all Expansion Costs incurred from
the Date of the Option Notice to the Expansion Completion Date, and (11) a
contingency not to exceed ten percent (10%) of other Expansion Costs.

       (c)    CONSTRUCTION OF THE EXPANSION IMPROVEMENTS.  Following Tenant's
approval, or deemed approval, of the Expansion Plans and the Final Budget, but
subject to receipt of any necessary governmental permits and approvals, Landlord
shall commence construction of the Expansion Improvements using a reputable,
experienced general contractor or design-builder.  Landlord shall prosecute
completion of the Expansion Improvements in a diligent manner, subject to Tenant
Delays or Force Majeure.  The Expansion Improvements shall be constructed in a
good and workmanlike manner and in accordance with all Applicable Laws.  During
the construction of the Expansion Improvements, Landlord and Landlord's
architects, contractors, engineers, agents, and employees shall have access to
the Leased Premises as reasonably required to complete the construction of the
Expansion Improvements.  Landlord shall use reasonable efforts to minimize
disruption to Tenant operations, but Tenant acknowledges and agrees that such
construction activities may result in disruption of Tenant's operations, or may
result in temporary interruption of access or utilities and Landlord shall have
no liability therefor.

       (d)    SUBSTANTIAL COMPLETION.  Landlord shall deliver possession of the
Expansion Improvements to Tenant upon substantial completion thereof (the
"Expansion Completion Date"), substantial completion being determined pursuant
to the provisions of Section 1(d) of this Lease.  On the Expansion Completion
Date, the Expansion Improvements shall become part of the Leased Premises, as
that term is defined herein, and shall automatically be governed by all the
terms and provisions of this Lease.  Any delay caused to Landlord in the
substantial completion of the Expansion Improvements caused by a Tenant Delay
shall accelerate the Expansion Completion Date on a day-for-day basis.

       (e)    RENT FOR THE EXPANSION IMPROVEMENTS.  Tenant's lease of the
Expansion Improvements shall be upon the same terms and conditions as Tenant's
Lease of the Leased Premises; provided, however, that Base Rent shall be
adjusted as provided herein.  Effective from and after the Expansion Completion
Date, Base Rent shall increase by the amount of the Expansion Rent, "Expansion
Rent" is the product of:  (a) the greater of (i) the ten (10) year U.S. Treasury
Rate in effect on the Expansion Completion Date plus 500 basis points and (ii)
10.50%; multiplied by (b) the sum of (i) $2.25 per square foot of the Expansion
Land; and (ii) the amount of the Final Budget; and (c) any other reasonably
unforeseeable Expansion Costs incurred by Landlord that were not included in the
Final Budget and that exceed the contingency contained therein.

       (f)    CONDITIONS PRECEDENT.  The parties acknowledge that Landlord's
obligation to build the Expansion Improvements shall be contingent upon the
following:

              (i)    Landlord's receipt of any and all required approvals,
       including, but not limited to, zoning, special use permits, and
       architectural review from all local and state

                                       39
<PAGE>

       governments and agencies having jurisdiction over development of the
       Expansion Improvements and the Expansion Land.

             (ii)    No uncured Tenant default shall exist at the time Tenant
       exercises the Expansion Option or at the time Landlord is prepared to
       commence construction of the Expansion Improvements; and

            (iii)    Since the Commencement Date, (A) Tenant's net worth shall
       not have materially deteriorated, and (B) there shall have been no
       downgrading of the senior unsecured credit rating of Tenant or its
       publicly traded parent.  If not publicly available, Tenant shall, on
       request of Landlord, deliver its audited financial statements for the
       most recent fiscal year completed prior to the date of the Option Notice.

In the event any of the above contingencies fail, Landlord may, at its option,
terminate Tenant's Expansion Option by written notice to Tenant whereupon this
Article 44 shall be null and void, except that Tenant shall be obligated to
reimburse Landlord for all Expansion Costs incurred to Date.

       (g)    Notwithstanding any termination of Tenant's Expansion Option, all
other provisions of this Lease shall continue in full force and effect.

                                      ARTICLE 45

                                     TERMINATION

       In the event either party terminates this Lease pursuant to an express
right to do so set forth herein, and in the event this Lease naturally expires
at the end of the Term, both Landlord and Tenant shall be relieved of all
further obligations under this Lease except for those which by their express
terms survive termination, which obligations shall continue in full force and
effect.  Notwithstanding the preceding, this Article 45 shall not operate or be
construed to release Tenant from any liability to Landlord in the event this
Lease is terminated by Landlord due to a default by Tenant. Additionally,
termination of this Lease shall not relieve a party from any obligations or
liabilities that may have arisen or accrued prior to termination.

                                       40
<PAGE>

EXECUTED By Landlord, this  30th   day of  July     , 1999.
                            -------        ----------

                                          LANDLORD:

                                          VALLEY VIEW BUSINESS CENTER, LTD.,
                                          A TEXAS LIMITED PARTNERSHIP

                                          By:    Proterra Properties, Inc.,
                                                 a Texas corporation,
                                                 General Partner

                                          By:    /s/ Mark Cullins
                                             ----------------------
                                          Name:  Mark Cullins
                                               --------------------
                                          Its:   President
                                              ---------------------

EXECUTED By Tenant, this  28th   day of    July   , 1999.
                        --------        ---------

                                          TENANT:

                                          UNITED STATIONERS SUPPLY CO.,
                                          an Illinois corporation

                                          By:  /s/ Daniel H. Bushell
                                             ----------------------------
                                          Name:  Daniel H. Bushell
                                               --------------------------
                                          Its:  EVP & CFO
                                              ---------------------------

<TABLE>
<CAPTION>

Exhibits:
<C>    <S>
A:     Legal Description of the Land
B:     Schedule of Construction Documents
C:     Site Plan
D:     Acceptance of Leased Premises Memorandum
E:     Form of Estoppel Agreement
F:     Expansion Land
G:     Construction Schedule
H:     Finish Work

</TABLE>

                                       41
<PAGE>

                                   EXHIBIT "A"

                                LEGAL DESCRIPTION

BEING a 808,223 square feet (18.55 acres) tract of land that is part of those
tracts of land described as Tract I and Tract II in deed to Airport Apartment
Joint Venture as recorded in Volume 88056, Page 5058, Deed Records, Dallas
County, Texas and part of tract of land described as Tract III is deed to
Town Lake Corporation as recorded in Volume 83005, Page 102, Deed Records,
Dallas County, Texas, situated in the James J. Goodman Survey, Abstract No.
1718, and the James J. Goodman Survey, Abstract No. 583, in the City of
Irving, Dallas County, Texas and the City of Fort Worth, Tarrant County,
Texas, and being more particularly described as follows:

BEGINNING at a 1/2-inch iron rod with NDM cap found in the north right-of-way
line of FAA Blvd. (80 foot right-of-way), said point being the southeast
corner of Area 3, Section 9, Centreport, Block 313B, Lots 1, 2 and 3, an
addition to the City of Fort Worth, as recorded in Volume 388/212, Page 04 of
the Plat Records of Tarrant County, Texas (P.R.T.C.T.), said point also being
in the approximate Dallas/Tarrant County Line, and the approximate
Irving/Fort Worth City Limits Line;

THENCE North 00 degrees 13 minutes 31 seconds East, departing the north line
of said FAA Blvd. and along the east line of the aforementioned Centreport
Addition, passing at 369.85 feet a "Y" cut on a concrete base to a fence
corner post, continuing a total distance of 371.00 feet to a 1/2-inch iron
rod with an NDM plastic cap found in a fence line, said iron rod being in the
south line of that certain tract of land conveyed to Airport Apartment Joint
Venture and described as Tract I according to the deed recorded in Volume
88056, Page 5058, D.R.D.C.T.;

THENCE South 88 degrees 57 minutes 16 second West, a distance of 30.89 feet
to a 4-inch fence corner post at the southwest corner of the aforementioned
Tract I, said fence corner post also being the southeast corner of a tract of
land conveyed to Centre Development Company, Inc., as recorded in Volume
10191, Page 0577, D.R.T.C.T.;

THENCE North 00 degrees 26 minutes 13 seconds West, a distance of 551.71 feet
to a 5/8-inch iron rod found for an angle point of the herein described
tract, said iron rod also being the northwest corner of said Tract I and the
southwest corner of the aforementioned Tract II;

THENCE North 00 degrees 19 minutes 23 seconds East, a distance of 219.11 feet
to a1/2-inch iron rod w/Halff Assoc. Inc. cap set for a corner;

THENCE North 89 degrees 58 minutes 17 seconds East, a distance of 718.97 feet
to a1/2-inch iron rod w/Halff Assoc. Inc. cap set for a corner;

THENCE South 00 degrees 01 minutes 43 seconds East, a distance of 1141.37
feet to a 1/2-inch iron rod w/Halff Assoc. Inc. cap set for corner, said
point being in the north right-of-way line of F.A.A. Blvd. and also being on
a curve to the left whose radius is 1040.00 feet, whose chord bears North 89
degrees 35 minutes 35 seconds West, a distance of 16.11 feet;

THENCE continuing along said curve to the left an arc distance of 16.11 feet
through a central angle of 00 degrees 53 minutes 16 seconds to a 1/2-inch
iron rod w/cap found for corner;

THENCE South 89 degrees 58 minutes 17 seconds West, a distance of 671.03 feet
to the POINT OF BEGINNING AND CONTAINING 808,223 square feet or 18.55 acres
of land more or less.

NOTE: COMPANY DOES NOT REPRESENT THAT THE ABOVE ACREAGE AND/OR SQUARE FOOTAGE
CALCULATIONS ARE CORRECT.
<PAGE>

Exhibit B

Construction Documents appear here.

<PAGE>

                                   EXHIBIT "D"

                        ACCEPTANCE OF PREMISES MEMORANDUM

         This memorandum is being executed pursuant to the Lease Agreement
(the "Lease") executed on the ____ day of __________, 1999, between Valley
View Business Center, Ltd. ("Landlord"), and United Stationers Supply Co.
("Tenant").

Landlord and Tenant hereby agree that:

1.       Except for the Punch List Items (as shown on the attached Punch
         List), Landlord has fully completed the Improvements and any other
         construction work or improvements required under the terms of the
         Lease and any exhibits attached thereto. Landlord will use reasonable
         efforts to complete the Punch List Items within thirty (30) days after
         the date hereof.

2.       Tenant acknowledge that, subject to the Punch List Items, (i) it has
         inspected and accepts the Leased Premises, (ii) the buildings and
         improvements comprising the same are suitable for the purpose for
         which the Leased Premises are leased, (iii) the Leased Premises are
         in good and satisfactory condition, and (iv) no representations as to
         the repair of the Leased Premises, nor promises to alter, remodel or
         improve the Leased Premises which have been made by Landlord remain
         unsatisfied.

3.       The Commencement Date of the Lease is the ____ day of _________, 2000.

4.       Subject to Renewal Options in the Lease, the expiration date of the
         Initial Term of the Lease is the ____ day of __________, 2010.

5.       All capitalized terms not defined herein shall have the meaning
         assigned to them in the Lease.

Agreed and Executed this ____ day of __________, 2000.

Landlord:                                       Tenant:

VALLEY VIEW BUSINESS CENTER, LTD.,                UNITED STATIONERS SUPPLY CO.
a Texas limited partnership
                                                By:__________________________
By:      Proterra Properties, Inc., a Texas     Name:________________________
         Corporation, General Partner           Title:_______________________

         By:________________________
         Name:______________________
         Title:_____________________
<PAGE>

                                   EXHIBIT "E"

                           TENANT ESTOPPEL CERTIFICATE

As of Date:

Landlord:

Tenant:

Address:

Purchaser:

Premises:

         It is understood the below referenced Lease is being assigned to
Purchaser by Seller (Seller being described as "Landlord" under the Lease).
Accordingly, Tenant as lessee of the above referenced Premises under the
Lease, hereby certifies and confirms to Purchaser, Seller, and their assigns,
the following:

         A.    Lease Date:
               Lease Amendment Date(s):
               Date of Commencement:
               Date of Expiration:
               Renewal Options:
               Security Deposit:       None
               Building Square Feet:
               Base Rent:  Years__________    $____________________($______ft)
                           Years__________    $____________________($______ft)
                           Years__________    $____________________($______ft)

         B. A true and correct copy of the Lease and all amendments currently
in effect ("LEASE") are attached hereto. The Lease constitutes the entire
understanding between Tenant and the Seller and is currently in full force
and effect. Tenant is the only party having any right to possession or use of
the Premises and no other party is in possession thereof. No sublease
agreement, pursuant to which any sublessee may now or hereafter have any
right to possession or use of the Premises or any part thereof, presently
exists.

         C. Tenant is currently paying the full rental payable under the
Lease and no payment of rents or other charges due or to become due under the
Lease has been made more than one month in advance of its due date. If any
rent credit or free rent is applicable with respect to the Lease, such rent
credit or free rent expired or will expire on ______________, 1999 (if blank,
none). Tenant agrees it will not pay any rent under Lease more than one month
in advance of its due date.

<PAGE>

         D. All allowances to which Tenant is entitled under Section ____ or
elsewhere under the Lease have been fully utilized or paid to the Tenant in
full prior to the date hereof.

         E. Any late delivery payments due from Landlord under Section _____
of the Lease have been paid in full or waived by Tenant prior to the date
hereof.

         F. As of this date, neither Tenant, nor to the best of the Tenant's
knowledge, Seller, is in default in the performance of its obligations under
the Lease. At this time, the Tenant has no claim or breach, counterclaim,
lien or offset under the Lease against the Seller and Seller has fulfilled
all of its duties of an inducement nature.

         G. Tenant is solvent and free from bankruptcy and other
reorganization proceedings and assignments for the benefit of creditors.

         H. Tenant has taken possession of the Premises and affirms that such
property, in its present condition, is satisfactory for the Lessee's use, has
been substantially completed in accordance with agreed plans and
specifications attached to the lease (subject to punchlist items attached
hereto) and otherwise complies fully with the terms of the Lease.

         I. Tenant has no option to purchase the Premises pursuant to the
            Lease or otherwise.

         J. Tenant has waived its termination rights under Section _____ of
            the Lease.

         K. Any notices which any party hereto may desire or may be required
            to give to any other party shall be in writing and the mailing
            thereof by certified mail, or equivalent, to the addresses as set
            forth above, or to such other places as any party hereto may be
            notice in writing designate shall

constitute service of notice hereunder.

         IN WITNESS WHEREOF, the undersigned has caused this Estoppel
Certificate to be executed by a duly authorized official as of the date first
above written.

                                           TENANT

                                           By:______________________________
                                           Its:_____________________________

Please indicate the form of Tenant, (i.e., partnership, corporation, sole
proprietorship, and the State of organization) and attach copy of lease and
any amendments, side letters, etc.
<PAGE>

                                   EXHIBIT "F"

                                 EXPANSION LAND

State of Texas
Count of Dallas

BEING a 444.072 square feet (10.19 acre) tract of land that is part of those
tracts of land described as Tract I and Tract II in deed to Airport Apartment
Joint Venture as recorded in Volume 88056, Page 5058 Deed Records, Dallas
County, Texas, situated in The James J. Goodman Survey Abstract No. 1718, and
the James J. Goodman Survey, Abstract No. 583, in the City of Irving Dallas
County, Texas and the City of Fort Worth, Tarrant County, Texas, and being
more particularly described as follows:

COMMENCING at the intersection of the southwesterly right-of-way line of
County Line Road (40 ft. R.O.W.) and the northwesterly right-of-way line of
Valley View Lane (170 ft. R.O.W.) said point being a point of curvature for a
circular curve to the left whose radius is 1494.40 feet and whose chord bears
South 33 degrees 50 minutes 57 seconds West a distance of 47.24 feet;

THENCE along said curve through a central angle of 01 degrees 48 minutes 41
seconds an arc length of 47.25 feet to a point for a corner;

THENCE South 32 degrees 56 minutes 36 seconds West a distance of 88.09 feet
to a point for a corner, said point being the point of curvature for a
circular curve to the right whose radius is 140 feet, and whose chord bears
South 73 degrees 16 minutes 03 seconds West a distance of 181.19 feet;

THENCE along said curve through a central angle of 80 degrees 38 minutes 53
seconds an arc length of 197.06 feet, said point being a point of curvature
for a circular curve to the left whose radius is 1040.00 feet, and whose
chord bears North 77 degrees 45 minutes 53 seconds West a distance of 410.59
feet;

THENCE along said curve through a central angle of 22 degrees 46 minutes 10
seconds an arc length of 413,30 feet, to a point for a corner;

THENCE South 89 degrees 58 minutes 17 seconds West, a distance of 671.03 feet
to a point for a corner;

THENCE North 00 degrees 13 minutes 31 seconds East, a distance of 371.00 feet
to a point for a corner;

THENCE South 88 degrees 57 minutes 16 seconds West, a distance of 30.89 feet
to a point for a corner;

THENCE North 00 degrees 26 minutes 13 seconds West, a distance of 551.71 feet
to a point for a corner;

THENCE North 00 degrees 19 minutes 23 seconds East, a distance of 219.11 feet
to a POINT OF BEGINNING of said 10.19 acre tract;

THENCE North 00 degrees 19 minutes 23 seconds East, a distance of 862.12 feet
to a point for a corner;

THENCE South 86 degrees 48 minutes 27 seconds East, a distance of 55.43 feet
to a point for a corner;

THENCE South 50 degrees 28 minutes 25 seconds East, a distance of 212.21 feet
to a point for a corner;

THENCE South 23 degrees 41 minutes 48 seconds West, a distance of 40.00 feet
to a point for a corner;

<PAGE>

Exhibit "F"
Expansion Land
Page two

THENCE South 66 degrees 18 minutes 16 seconds East, a distance of 49.43 feet
to a point for a corner;

THENCE South 50 degrees 28 minutes 24 seconds East, a distance of 177.91 feet
to a point for a corner;

THENCE South 66 degrees 51 minutes 40 seconds East, a distance of 523.36 feet
to a point for a corner;

THENCE South 89 degrees 45 minutes 23 seconds West, a distance of 278.37 feet
to a point for a corner;

THENCE South 01 degrees 06 minutes 58 seconds East, a distance of 38.87 feet
to a point for a corner;

THENCE North 89 degrees 58 minutes 17 seconds East, a distance of 492.18 feet
to a point for a corner;

THENCE South 00 degrees 01 minutes 43 seconds East, a distance of 310.33 feet
to a point for a corner;

THENCE North 89 degrees 58 minutes 17 seconds East, a distance of 718.97 feet
to the POINT OF BEGINNING and containing 444,072 square feet or 10.19 acres
of land more or less.

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