Document:

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                                                                   EXHIBIT 10.41
                          DP OPERATING PARTNERSHIP, LP

                STANDARD INDUSTRIAL LEASE                 For Landlord Use Only
                       (NET-NET-NET)                             Building #256D
                                                                           ----
                                                                       L/A: EGZ

Lease Preparation Date: September 11, 2000

Landlord: DP OPERATING PARTNERSHIP, L.P., A DELAWARE LIMITED PARTNERSHIP,
LOCATED AT 1200 FINANCIAL BOULEVARD, P. O. BOX 7098, RENO, NEVADA 89510

Tenant:  United Stationers Supply Co., AN ILLINOIS CORPORATION

Trade Name (dba):  United Stationers

1. LEASE TERMS

            1.01 Premises: The Premises referred to in this Lease contain an
approximately ninety-nine thousand (99,000) square foot portion of the
building comprising approximately three hundred ninety-four thousand, one
hundred five (394,105) square feet (the "Building") as shown on Exhibit "A"
attached. The address of the Premises is: 1190 Trademark Drive, Reno, Nevada
89510.

            1.02 Project: The Project in which the Premises are located consists
of approximately twenty-three and 31/100ths (23.31) acres of land and all
improvements including the Building situated thereon as shown on Exhibit "A".

            1.03 Tenant's Notice Address: Tenant's Notice Address is the address
of the Leased Premises as defined in Section 1.01 with a copy to United
Stationers Supply Co. Law Department, 2200 East Golf Road, Des Plaines, IL
60016.

            1.04 Landlord's Notice Address: P. O. BOX 7098, RENO, NEVADA 89510

            1.05 Tenant's Permitted Use: General warehouse and distribution of
business and consumer products in full compliance with the terms of this Lease.

            1.06 Lease Term: The Lease Term is for ten (10) years and commences
on the Commencement Date as hereinafter defined and expires ten (10) years
thereafter. The Commencement Date shall be evidenced by a commencement date
certificate in the form of Exhibit E attached hereto, which the parties agree to
execute within ten (10) days of the Commencement Date. Tenant shall also be
entitled to the options to extend the Lease Term for two (2) additional five (5)
year periods (the "Extension Terms") as defined in Section 41.01 below), subject
to and in compliance with the terms and conditions specified in Section 41.01
below. For purposes of this Lease, the terms "Lease Term," "term of the Lease,"
and "term" shall mean and include the initial ten (10) year period of the Lease
specified above, together with the Extension Term(s) to the extent the Extension
Option(s) are exercised by Tenant pursuant to Section 41.01 below, and the term
"Initial Lease Term," shall mean the initial ten (10) year period of the Lease
specified above.

            1.07 Base Monthly Rent: Base Monthly Rent shall be paid in lawful
money of the United States of America in accordance with the following schedule:

<TABLE>
<CAPTION>
         LEASE PERIOD                          BASE MONTHLY RENT AMOUNT
         ------------                          ------------------------
<S>                                            <C>
         Commencement Date - Month 30          $32,422.50 ($.3275/SF)
         Months 31-60                          $33,660.00 ($.34/SF)
         Months 61-90                          $34,947.00 ($.353/SF)
         Months 91-120                         $36,285.00 ($.3665/SF)
         Extension Term(s)                     Determined per Section 41.02
</TABLE>

Additional Base Monthly Rent may also be payable pursuant to Section 39.01
below.

            1.08  Security Deposit:  None.

            1.09 Proportionate Share: Tenant's Proportionate Share is
twenty-five and 12/100ths percent (25.12%) based upon the total square footage
of the Building and the square footage of the Premises.

<PAGE>

            1.10 Commencement Date: The Commencement Date will be the date
when the office and warehouse areas of the Premises are subject to a
temporary certificate of occupancy. Incomplete minor items in the office
area, including but not limited to, touch up items, unhung interior doors,
incomplete cove bases, and similar items will not delay the Commencement
Date. Landlord agrees to provide Tenant with notice of the anticipated
Commencement Date at least two weeks prior to the date Landlord anticipates
will be the Commencement Date; however, Tenant acknowledges that the date
Landlord provides in such notice will be Landlord's good faith estimate and
any inaccuracy of such estimate will not affect the determination of the
actual Commencement Date. As of the date of execution of this Lease, Landlord
estimates the Commencement Date will be approximately March 1, 2001.

            1.11 Parking: Tenant is entitled to fifty (50) parking spaces within
the Project as depicted on Exhibit "A", subject to the provisions of Section 8.
of this Lease.

            1.12 Tenant Improvements: Tenant Improvements to be performed in the
Premises, if any, will be performed in accordance with the terms and provisions
entitled "Landlord's Work" contained on Exhibit B attached. Thereafter during
the Lease Term, Landlord will be under no obligation to alter, change, decorate
or improve the Premises.

            1.13  [INTENTIONALLY DELETED]

2. DEMISE AND POSSESSION

         2.01 Landlord leases to Tenant and Tenant leases from Landlord the
Premises described in 1.01. By entering the Premises, Tenant acknowledges
that it has examined the Premises and accepts the Premises in their present
condition subject only to Landlord's Work Landlord has agreed to do as stated
on Exhibit B. Landlord expressly reserves its right to lease any other space
available in the Project to whom ever it wishes, further Tenant hereby
acknowledges that it did not rely on any other tenant remaining a tenant in
the Project as a consideration for entering into this Lease. Except as set
forth in Section 43.01 below, nothing contained in this Lease, including any
Exhibits hereto, shall be interpreted or is intended in any way as a
representation or warranty by Landlord as to the quantity, quality, or
fitness of the Premises, including, without limitation, a fitness for any
particular purpose, each of which is expressly disclaimed by Landlord
hereunder.

         2.02 If for any reason Landlord cannot deliver possession of the
Premises with a Temporary Certificate of Occupancy by March 1, 2001 (the
"Scheduled Lease Commencement Date"), Landlord shall not be subject to any
liability nor shall the validity of this Lease be affected. However, Tenant,
unless it is the cause of the delay, as Tenant's sole and exclusive remedy
has the right to cancel this Lease by written notification if possession of
the Premises with a Temporary Certificate of Occupancy is not delivered
within ninety (90) days of the Scheduled Lease Commencement Date. Provided
that Landlord has exercised commercially reasonable efforts to complete
Landlord's Work and obtain a Temporary Certificate of Occupancy for the
Premises, Landlord may terminate this Lease by giving written notice to
Tenant of possession of the Premises with a Temporary Certificate of
Occupancy is not delivered within ninety (90) days of the Scheduled Lease
Commencement Date. The dates specified in this Section 2.02 shall be extended
for delays caused by Tenant or Tenant's representatives, agents, contractors,
employees, or invitees, and by FORCE MAJEURE events described in Section
38.11 below; provided, however, that notwithstanding any other provision of
this Lease, Tenant's obligation to pay Rent under this Lease shall not be
extended with respect to and shall be required for the period of all delays
caused by Tenant or Tenant's representatives, agents, contractors, employees,
or invitees.

         2.03  [INTENTIONALLY DELETED]

         2.04. Landlord agrees to utilize reasonable efforts to allow Tenant
access to about 50% of warehouse space, Tenant to supply its own temporary
utilities for set-up purposes as soon as construction permits, which Landlord
projects to be on or about December 1, 2000, provided no further Tenant
changes to construction. Any such access permitted by Landlord shall be
limited as Landlord may direct in its sole discretion, and in no event will
any such access be permitted to the extent such access impedes completion of
Landlord's Work. Tenant hereby waives and releases Landlord from any damage
to Tenant or Tenant's property and Tenant shall indemnify and hold Landlord
harmless from all liability, loss or damage arising from or related to
Tenant's entry upon the Premises before the Commencement Date or the
performance of Tenant's Work, including without limitation the negligence or
intentional acts of Tenant or Tenant's employees, agents, contractors,
suppliers, agents, invitees and licensees.

3. BASE MONTHLY RENT

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         3.01 Base Monthly Rent: On the first day of every calendar month of
the Lease Term commencing on the Commencement Date (subject to the provisions
of Section 2.02 hereof), Tenant will pay, without deduction or offset, prior
notice or demand, Base Monthly Rent and Additional Rent at the place
designated by Landlord. In the event this Lease is to commence upon a date
not ascertained on execution, both parties agree to complete and execute a
Commencement Date Certificate in the form of Exhibit "E" within ten (10) days
of the Commencement Date, if applicable.

         3.02  Adjustments:

         A.  INTENTIONALLY LEFT BLANK.

         B.  INTENTIONALLY LEFT BLANK.

         C. Landlord will give Tenant notice of such increase by written
invoice, however, failure of Landlord to give such notice shall not be
construed as a waiver of the increase and any such increase amount shall
accrue to the Rent.

         3.03 Any installment of rent or any other charge payable which is
not paid within ten (10) days after it becomes due will be considered past
due and Tenant will pay to Landlord as Additional Rent a late charge equal to
the product of the variable Prime Rate "Prime", plus six percent (6%) per
annum as charged by Bank of America, Nevada; times the amount of such
installment amount due, or eighteen percent (18%) per annum (the "Agreed
Interest Rate") of such installment or the sum of twenty-five dollars
($25.00), whichever is greater, for each month or fractional month
transpiring from the date due until paid. A twenty-five dollar ($25.00)
handling charge will be paid by Tenant to Landlord for each returned check
and, thereafter, if this occurs twice in any twenty-four (24) month period,
Tenant will pay all future payments of rent or other charges due by
electronic funds transfer. In the event a late charge is assessed for three
(3) consecutive rental periods, whether or not it is collected, the rent
shall without further notice become due and payable quarterly in advance
notwithstanding any provision of this Lease to the contrary. If Tenant shall
be served with a demand for the payment of past due rent, any payments
tendered thereafter to cure any default by Tenant shall be made only by
electronic funds transfer.

         3.04  [INTENTIONALLY DELETED]

4.  COMMON AREAS

         4.01 Definitions: "Common Areas": "Common Area" is defined as all
areas and facilities outside the Premises and within the exterior boundary
line of the Project that are provided and designated by Landlord for the
non-exclusive use of Landlord, Tenant and other lessees of the Project and
their respective employees, agents, customers and invitees. Common Areas
include, but are not limited to: all parking areas, loading and unloading
areas, trash areas, roadways, sidewalks, walkways, parkways, driveways,
corridors, landscaped areas, conservation easements, wetlands, entry way,
pump room and any restrooms used in common by lessees.

         4.02 So long as Tenant is not in default under the Lease beyond
curative periods, Tenant, its employees, agents, customers and invitees have
the non-exclusive right (in common with other tenants, Landlord, and any
other person granted use by Landlord) to use of the Common Areas. Tenant
agrees to abide by and conform to, and to cause its employees, agents,
customers and invitees to abide by and conform to all rules and regulations
established by Landlord subject to provisions of paragraph 24.

         4.03 Landlord has the right, in its sole discretion, from time to
time, to: 1) make changes to the Common Areas, including without limitation,
changes in the location, size, shape and number of driveways, entrances,
parking spaces, parking areas, ingress, egress, direction of driveways,
entrances, corridors parking areas and walkways; 2) close temporarily any of
the Common Areas for maintenance purposes so long as reasonable access to the
Premises remains available; 3) add additional buildings and improvements to
the Common Areas; 4) use the Common Areas while engaged in making additional
improvements, repairs or alterations to the Project or any portion thereof;
do and perform any other acts or make any other changes in, to or with
respect to the Common Areas and Project as Landlord may, in the exercise of
sound business judgement, deem to be appropriate.

         4.04  [INTENTIONALLY DELETED]

5. ADDITIONAL RENT

         5.01 All charges payable by Tenant other than Base Monthly Rent are
called "Additional Rent". Unless this lease provides otherwise, Additional Rent
is to be paid with the next monthly installment of Base Monthly Rent and is
subject to the provisions of 3.03. The term "rent" whenever used in this Lease
means Base Monthly Rent and Additional Rent.

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         5.02 Operating Costs

           A. "Operating Costs" are all costs and expenses of ownership,
operation, maintenance, management, repair and insurance incurred by Landlord
for the Project including, but not limited to the following: all supplies,
materials, labor and equipment, used in or related to the operation and
maintenance of the Common Areas; all utilities, including but not limited to:
water, electricity, gas, heating, lighting, sewer, waste disposal related to
the maintenance or operation of the Common Areas; all air-conditioning and
ventilating costs related to the maintenance or operation of the Project; all
Landlord's costs in managing, maintaining, repairing, operating and insuring
the Project, including, for example, clerical, supervisory, and janitorial
staff; all maintenance, management and service agreements, including but not
limited to, janitorial, security, trash removal related to the maintenance or
operation of the Project; all legal and accounting costs and fees for
licenses and permits related to the ownership and operation of the Project;
all insurance premiums and costs of fire, casualty, and liability coverage,
and rent abatement and any other type of insurance related to the Entire
Project, including any deductible for a loss attributable to the Premises;
all operation, maintenance and repair costs to the Common Areas, including
but not limited to, sidewalks, walkways, parkways, parking areas, loading and
unloading areas, trash areas, roadways, driveways, corridors, wetlands,
conservation areas, entryway and pump room, and landscaped area, including
for example, costs of resurfacing and restriping parking areas; all
maintenance and repair costs of building exteriors (including painting,
asphalt repair and replacement and roof maintenance, repair and replacement),
restrooms used in common by Tenant and signs and directories of the Project;
amortization (along with reasonable financing charges) of capital
improvements made to the Common Areas which may be required by any government
authority or which will improve the operating efficiency of the Project; a
reasonable reserve for repairs and replacement; and a fee equal to three
percent (3%) of the Base Monthly Rent for each month of the Lease Term for
Landlord's operation of the Common Areas. Operating Costs will not include
depreciation of the Project.

         B. Tenant shall pay to Landlord Tenant's Proportionate Share of the
Operating Costs as indicated in 1.09. If there is a change in the square
footage of either the Project or the Premises during the term of this Lease
the Proportionate Share of the Tenant shall be adjusted accordingly. Such
payment shall be paid by Tenant with and in addition to the monthly payment
of Base Monthly Rent. Tenant shall, if Landlord so elects, pay to Landlord on
a monthly basis, in advance, the amount which Landlord reasonably estimates
to be Tenant's Proportionate Share of the Operating Costs. In the event of
such election by Landlord, Landlord shall periodically determine Tenant's
share of the actual Operating Costs, and in the event that the amount which
Tenant has paid to Landlord on account of the estimated Operating Costs is
less than his share of such actual Operating Costs, Tenant shall pay such
difference to Landlord on the next rent payment date. In the event that
Tenant has paid to Landlord more than his share of such actual Operating
Costs, the amount of such difference shall be credited against Tenant's
payments of Operating Costs next due or if such period is at the end of the
Lease term the amount of any overpayment shall be promptly refunded to Tenant.

         C. Failure by Landlord to provide Tenant with a statement by April
1st of each year shall not constitute a waiver by Landlord of its right to
collect Tenant's share of Operating Costs or estimates for a particular
calendar year; Landlord's right to charge Tenant for such expenses in
subsequent years is not waived.

         D. Tenant shall have a reasonable right to audit Landlord's records
relative to CAM charges, provided any such audit shall be limited to CAM
charges incurred within one year of the audit request.

         5.03  Taxes

           A. "Real Project Taxes" are: (i) any fee, license fee, license
tax, business license fee, commercial rental tax, levy, charge, assessment,
penalty or tax imposed by any taxing authority against the Project; (ii) any
tax or fee on Landlord's right to receive, or the receipt of, rent or income
from the Project or against Landlord's business of leasing the Project, (iii)
any tax or charge for fire protection, streets, sidewalks, road maintenance,
refuse or other services provided to the Project by any governmental agency;
(iv) any tax imposed upon this transaction, or based upon a re-assessment of
the Project due to a change in ownership or transfer of all of part or
Landlord's interest in the Project; (v) any charge or fee replacing,
substituting for, or in addition to any tax previously included within the
definition of real property tax; and (vi) the Landlord's cost of any tax
protest relating to any of the above. Real Project Taxes do not, however,
include Landlord's federal or state income, franchise, inheritance or estate
taxes.

           B. Tenant shall pay to Landlord Tenant's Proportionate Share of
the Real Project Taxes as indicated in 1.09. Such payment shall be paid by
Tenant annually upon being invoiced for such taxes in addition to the monthly
payment of Base Monthly Rent. Tenant shall, if Landlord so elects, pay to
Landlord on a monthly basis, in advance, the amount which Landlord reasonably
estimates to be Tenant's Proportionate Share of the Real Project Taxes. In
the event of such election by Landlord,

<PAGE>

Landlord shall periodically determine Tenant's share of the actual Real
Project Taxes, and in the event that the amount which Tenant has paid to
Landlord on account of the Real Project Taxes is less than his share of such
actual Real Project Taxes, Tenant shall pay such difference to Landlord on
the next rent payment date. In the event that Tenant has paid to Landlord
more than his share of such actual Real Project Taxes, the amount of such
difference shall be credited against Tenant's payment of Real Project Taxes
next due. If the Lease term is expired then Landlord shall promptly refund
any overpayment to Tenant.

           C. Personal Property Taxes: Tenant will pay all taxes charged against
trade fixtures, furnishing, equipment or any other personal property belonging
to Tenant. Tenant will have personal property taxes billed separately from the
Project. If any of Tenant's personal property is taxed with the Project, Tenant
will pay Landlord the taxes for the personal property upon demand by Landlord.

         5.04 Based on Tenant's Proportionate Share defined in 1.09, Tenant
agrees to pay as Additional Rent to Landlord its share of any parking charges,
utility surcharges, occupancy taxes, or any other costs resulting from the
statutes or regulations, or interpretations thereof, enacted by any governmental
authority in connection with the use or occupancy of the Project or the parking
facilities serving the Project, or any part thereof.

         5.05 Landlord by completing this paragraph may elect to have Tenant pay
a monthly estimate of the Additional Rent due from Tenant of Five and one-half
cents (5.5(cent)) per square foot, i.e., Five Thousand, Four Hundred Forty-five
Dollars ($5,445) per month. Landlord shall make adjustments to this estimate
based upon actual costs and projected future costs. Landlord shall periodically
determine the balance between actual Additional Rent and Additional Rent paid by
Tenant and make adjustments in accordance with 5.02 and 5.03 above.

6. SECURITY DEPOSIT

         6.01     Intentionally deleted.

7. USE OF PREMISES:  QUIET CONDUCT

         7.01 The Premises may be used and occupied only for Tenant's Permitted
Use as shown in 1.05 and for no other purpose, without obtaining Landlord's
prior written consent. Tenant will comply with all laws, ordinances, orders and
regulations affecting the Premises. Tenant will not perform any act or carry on
any practices that may injure the Project or the Premises or be a nuisance or
menace, or disturb the quiet enjoyment of other lessees in the Project including
but not limited to equipment which causes vibration, use or storage of
chemicals, or heat or noise which is not properly insulated. Tenant will not
cause, maintain or permit any outside storage on or about the Premises. In
addition, Tenant will not allow any condition or thing to remain on or about the
Premises which diminishes the appearance or aesthetic qualities of the Premises
and/or the Project or the surrounding property. The keeping of a dog or other
animal on or about the Premises is expressly prohibited.

            7.02 As used in this Article 7., the following terms shall have the
following meanings:

                  A. The term, "Environmental Laws," means all federal,
state, and local statutes, laws, rules, regulations, and ordinances relating
to the protection of human health or environmental matters, including,
without limitation, those relating to fines, orders, injunctions, penalties,
damages, contribution, cost recovery compensation, losses or injuries
resulting from the release or threatened release of Hazardous Substances (as
hereinafter defined) and the generation, use, storage, transportation, or
disposal of Hazardous Substances, in any manner applicable to Tenant or the
Project, including, without limitation, the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 (42 U.S.C. ss. 9601 ET
SEQ.); the Hazardous Material Transportation Act (49 U.S.C. ss. 1801 ET
SEQ.); the Resource Conservation and Recovery Act of 1976 (42 U.S.C. ss. 6901
ET SEQ.); the Federal Water Pollution Control Act (33 U.S.C. ss. 1251 ET
SEQ.); the Clean Air Act (42 U.S.C. ss. 7401 ET SEQ.); the United States
Environmental Protection Agency's Rules Concerning Underground Storage Tanks;
the Toxic Substances Control Act of 1976 (15 U.S.C. ss. 2601 ET SEQ.); the
Safe Drinking Water Act (42 U.S.C. ss. 300 ET SEQ.); the Occupational Safety
and Health Act of 1970 (29 U.S.C. ss. 651 ET SEQ.); the Federal Hazardous
Substances Act (15 U.S.C. ss. 1261ET SEQ.); the Emergency Planning and
Community Right-to-Know Act (42 U.S.C. ss. 11001 ET SEQ.); Chapter 444 of the
Nevada Revised Statutes ("NRS"), Sanitation; Chapter 445A of the NRS, Water
Control; Chapter 445B of the NRS, Air Pollution; Chapter 459 of the NRS,
Hazardous Materials; Title 40 of the NRS, Public Health and Safety; Title 47
of the NRS, Forestry, Forest Products and Flora; and the Uniform Fire Code;
each as heretofore and hereafter amended, modified, replaced or supplemented,
and any future or present local, state or federal laws, statutes, rules and
regulations promulgated thereunder or pursuant thereto, and any other present
or future law, ordinance, rule, regulation, permit or permit condition, order
or directive addressing environmental, health or safety issues of or by the
federal government, any state or any political subdivision thereof, or any
agency, court or body of the federal government, or any state or any
political subdivision thereof, exercising

<PAGE>

executive, legislative, judicial, regulatory or administrative functions
which are applicable to the Project or Tenant.

                  B. The term, "Hazardous Waste," means (i) any chemical,
material, substance, mixture, waste, or item defined as or included in the
definition of "hazardous substances," "hazardous wastes," "hazardous
materials," "extremely hazardous waste," "regulated substances," "restricted
hazardous waste," "toxic pollutants," "pollutants," "toxic substances" or
words of similar import under any applicable local, state or federal law or
under the regulations adopted or publications promulgated pursuant thereto,
including, without limitation, Environmental Laws, or which is or becomes
listed, regulated, or addressed by any federal, state, regional or local
governmental authority because it is any way hazardous, toxic, polluting
carcinogenic, otherwise adversely affects any part of the environment or
creates risks of any such hazards or effects; (ii) any oil, petroleum or
petroleum derived substance, any drilling fluids, produced waters or other
wastes associated with the exploration, development or production of crude
oil, any flammable substances or explosives, any radioactive materials, any
hazardous wastes or substances, any toxic wastes or substances or any other
materials or pollutants which (I) pose a hazard to the Project or to persons
on or about the Project, or (II) cause the Project to be in violation of any
Environmental Laws; (iii) asbestos in any form which is or could become
friable, radon gas, urea formaldehyde foam insulation, polychlorinated
biphenyls; (iv) infectious or medical waste; and (v) any other chemical,
material or substance, exposure to which is prohibited, limited or regulated
under any Environmental Law.

         7.03 Tenant's Covenants. Tenant does not intend to and Tenant will not,
nor will Tenant allow any other person (including partnerships, corporations and
joint ventures), during the term of this Lease to manufacture, process, store,
distribute, use, discharge or dispose of any Hazardous Waste in, under or on the
Project, the Common Areas, or any property adjacent thereto.

         A. Tenant shall notify Landlord promptly in the event of any spill or
release of Hazardous Waste into, on, or onto the Project regardless of the
source of spill or release, whenever Tenant knows or suspects that such a
release occurred.

         B. Tenant will not be involved in operations at or near the Project
which could lead to the imposition on the Tenant or the Landlord of liability or
the creation of a lien on the Project, under the Environmental Laws.

         C. Tenant shall, upon twenty-four (24) hour prior notice by Landlord
(or such lesser notice as is reasonable during an emergency), permit Landlord or
Landlord's agent access to the Project to conduct an environmental site
assessment with respect to the Project. Landlord shall conduct such assessment
during ordinary business hours, except for emergencies.

         7.04. Indemnity. Tenant for itself and its successors and assigns
undertakes to protect, indemnify, save and defend Landlord, its agents,
employees, directors, officers, shareholders, affiliates, consultants,
independent contractors, successors and assigns (collectively the "Indemnitees")
harmless from any and all liability, loss, damage and expense, including
reasonable attorneys' fees, claims, suits and judgments that Landlord or any
other Indemnitee, whether as Landlord or otherwise, may suffer as a result of,
or with respect to:

         A. The violation by Tenant or Tenant's agents, employees, invitees,
licensees or contractors of any Environmental Law, including the assertion of
any lien thereunder and any suit brought or judgment rendered regardless of
whether the action was commenced by a citizen (as authorized under the
Environmental Laws) or by a government agency;

         B. To the extent caused, directly or indirectly by Tenant or Tenant's
agents, employees, invitees, licensees or contractors, any spill or release of
or the presence of any Hazardous Waste affecting the Project whether or not the
same originates or emanates from the Project or any contiguous real estate,
including any loss of value of the Project as a result of a spill or release of
or the presence of any Hazardous Waste;

         C. To the extent caused, directly or indirectly by Tenant or Tenant's
agents, employees, invitees, licensees or contractors, any other matter
affecting the Project within the jurisdiction of the United States Environmental
Protection Agency, the Commonwealth of Pennsylvania Department of Environmental
Protection, including costs of investigations, remedial action, or other
response costs whether such costs are incurred by the United States Government,
the Commonwealth of Pennsylvania, or any Indemnitee;

         D. To the extent caused, directly or indirectly by Tenant or Tenant's
agents, employees, invitees, licensees or contractors, liability for clean-up
costs, fines, damages or penalties incurred pursuant to the provisions of any
applicable Environmental Law; and

<PAGE>

         E. To the extent caused, directly or indirectly by Tenant or
Tenant's agents, employees, invitees, licensees or contractors, liability for
personal injury or property damage arising under any statutory or common-law
tort theory, including, without limitation, damages assessed for the
maintenance of a public or private nuisance, or for the carrying of an
abnormally dangerous activity, and response costs.

         7.05 Remedial Acts. In the event of any spill or release of or the
presence of any Hazardous Waste affecting the Project, caused by Tenant, its
employees, agents, invitees, licensees, or contractors, whether or not the
same originates or emanates from the Project or any contiguous real estate,
and/or if Tenant shall fail to comply with any of the requirements of any
Environmental Law, Landlord may, without notice to Tenant, at its election,
but without obligation so to do, gives such notices and/or cause such work to
be performed at the Project and/or take any and all other actions as Landlord
shall deem necessary or advisable in order to remedy said spill or release of
Hazardous Waste or cure said failure of compliance and any amounts paid as a
result thereof, together with interest at the rate equal to the product of
the variable Prime Rate "Prime", plus six percent (6%) per annum as charged
by Bank of America, Nevada; times the amount of such installment amount due,
or eighteen percent (18%) per annum of such installment or the sum of
twenty-five dollars ($25.00), whichever is greater, for each month or
fractional month transpiring from the date due until paid.

         7.06 Settlement. Landlord upon giving Tenant ten (10) days prior
notice, shall have the right in good faith to pay, settle or compromise, or
litigate any claim, demand, loss, liability, cost, charge, suit, order,
judgment or adjudication under the belief that it is liable therefor, whether
liable or not, without the consent or approval of Tenant unless Tenant within
said ten (10) day period shall protest in writing and simultaneously with
such protest deposit with Landlord collateral satisfactory to Landlord
sufficient to pay and satisfy any penalty and/or interest which may accrue as
a result of such protest and any judgment or judgments as may result,
together with attorney's fees and expenses, including, but not limited to,
environmental consultants.

8. PARKING

         8.01 Tenant and Tenant's customers, suppliers, employees, and
invitees have the exclusive right to park in the fifty (50) parking spaces
designated on Exhibit "A". Landlord will not designate any of Tenant's
parking spaces as available to any other lessee in the Project, but Tenant
acknowledges that Landlord has no obligation to police the parking areas to
prevent their use by other lessees. Landlord reserves the right to, on an
equitable basis, assign specific spaces with or without charge to Tenant as
Additional Rent, make changes in the parking layout from time to time, and to
establish reasonable time limits and restrictions on parking. Tenant agrees
that Landlord is under no obligation to enforce Tenant's exclusive rights set
forth above.

9.  UTILITIES

         9.01 Tenant will be responsible for and shall pay for all water,
gas, heat, light, power, sewer, electricity, or other services metered,
chargeable to or provided to the Premises separate from and in addition to
the costs outlined in Section 5.02 dealing with the utility costs for Common
Area Maintenance. Landlord reserves the right to install separate meters for
any such utility, at the cost of tenant.

         9.02 Landlord will not be liable or deemed in default to Tenant nor
will there be any abatement of rent for any interruption or reduction of
utilities or services not caused by any act of Landlord or any act reasonably
beyond Landlord's control. Tenant agrees to comply with energy conservation
programs implemented by Landlord by reason of enacted laws or ordinances.

         9.03 Tenant will contract and pay for all telephone and such other
services for the Premises subject to the provisions of 10.03.

10. ALTERATIONS, MECHANIC'S LIENS

         10.01 Tenant will not make any alterations to the Premises without
Landlord's prior written consent, except that Tenant may make nonstructural
interior improvements not exceeding $25,000 in cost and not involving
penetration of the roof, floor or weight-bearing walls. Tenant further agrees
to notify Landlord of all Tenant alterations notwithstanding the consent
limitation of the previous sentence. Landlord's consent to all alterations
shall be contingent upon Tenant providing Landlord with the following items
or information, all subject to Landlord's approval: (i) Tenant's contractor,
(ii) certificates of insurance by Tenant's contractor for commercial general
liability insurance with limits not less than $2,000,000 General Aggregate,
$1,000,000 Products/Complete Operations Aggregate, $1,000,000 Personal &
Advertising Injury, $1,000,000 Each Occurrence, $50,000 Fire Damage, $5,000
Medical Expense, $1,000,000 Auto Liability (Combined Single Limit, including
Hired/Non-Owned Auto Liability), Workers Compensation, including Employer's
Liability, as required by state statute endorsed to show Landlord as an
additional insured and for worker's

<PAGE>

compensation as required and (iii) detailed plans and specifications for such
work. Tenant agrees that it will have its contractor execute a waiver of
mechanic's lien and that Tenant will remove any mechanic's lien placed
against the Project within ten (10) days of receipt of notice of lien. In
addition, before alterations may begin, valid building permits or other
permits or licenses required must be furnished to Landlord, and, once the
alterations begin, Tenant will diligently and continuously pursue their
completion. At Landlord's option, any alterations may become part of the
realty and belong to Landlord. If requested by Landlord, Tenant will pay,
prior to the commencement of the construction, an amount determined by
Landlord necessary to cover the costs of demolishing such alterations and/or
the cost of returning the Premises to its condition prior to such
alterations. As a further condition to giving such consent, Landlord may
require Tenant to provide Landlord, at Tenant's sole cost and expense, a
payment and performance bond in form acceptable to Landlord, in a principal
amount not less than one and one-half times the estimated costs of such
alterations, to ensure Landlord against any liability for mechanic's and
materialmen's liens and to ensure completion of work. Tenant, at Landlord's
option, shall at Tenant's expense remove all alterations and repair all
damage to the Premises.

         10.02 Notwithstanding anything in 10.01, Tenant may, without written
consent of Landlord, install trade fixtures, equipment, and machinery in
conformance with the ordinances of the applicable city and county, and they may
be removed upon termination of its Lease provided the Premises are not damaged
by their removal. The foregoing notwithstanding, (at the conclusion of the
original term or any executed renewal terms)Tenant shall either remove the
Mezzanine and repair all damages to the Premises caused by such removal or leave
the Mezzanine in place with no compensation therefor, at the option of Landlord.
In the event Tenant desires to leave the Mezzanine in place, Tenant will request
Landlord's permission to leave the Mezzanine in place not more than ninety nor
less than sixty days prior to Tenant's move out date. Unless Landlord grants
Tenant permission to leave the Mezzanine in place within five days of the date
of such request, or otherwise notifies Tenant not to remove the Mezzanine,
Tenant shall remove the Mezzanine prior to the move out date.

         10.03 Any private telephone systems and/or other related
telecommunications equipment and lines must be installed within Tenant's
Premises and, upon termination of this Lease removed and the Premises restored
to the same condition as before such installation.

         10.04 Tenant will pay all costs for alterations and will keep the
Premises, the Project and the underlying property free from any liens arising
out of work performed for, materials furnished to or obligation incurred by
Tenant.

         10.05 Landlord will have the right to construct or permit construction
of tenant improvements in or about the Project for existing and new tenants and
to alter any public areas in and around the Project. Notwithstanding anything
which may be contained in this Lease, Tenant understands this right of Landlord
and agrees that such construction will not be deemed to constitute a breach of
this Lease by Landlord and Tenant waives any such claim which it might have
arising from such construction.

11.  FIRE INSURANCE: HAZARDS AND LIABILITY INSURANCE

         11.01 Except as expressly provided as Tenant's Permitted Use, or as
otherwise consented to by Landlord in writing, Tenant shall not do or permit
anything to be done within or about the Premises which will increase the
existing rate of insurance on the Project and shall, at its sole cost and
expense, comply with any requirements, pertaining to the Premises, of any
insurance organization insuring the Project and Project-related apparatus.
Tenant agrees to pay to Landlord, as Additional Rent, any increases in
premiums on policies resulting from Tenant's Permitted Use or other use
consented to by Landlord which increases Landlord's premiums or requires
extended coverage by Landlord to insure the Premises.

         11.02 Tenant, at all times during the term of this Lease and at
Tenant's sole expense, will maintain a policy of standard fire and extended
coverage insurance with "all risk" coverage on all Tenant's improvements and
alterations in or about the Premises and on all personal property and
equipment to the extent of at least ninety percent (90%) of their full
replacement value. The proceeds from this policy will be used by Tenant for
the replacement of personal property and equipment and the restoration of
Tenant's improvements and/or alterations. This policy will contain an express
waiver, in favor of Landlord, of any right of subrogation by the insurer.

         11.03 Tenant, at all times during the term on this Lease and at
Tenant's sole expense, will maintain a policy of commercial general liability
coverage with limits of not less than $2,000,000 combined single limit for
bodily injury and property damage insuring against all liability of Tenant
and its authorized representatives arising out of or in connection with
Tenant's use or occupancy of the Premises.

<PAGE>

         11.04 All insurance will name Landlord and/or Landlord's designated
partners and affiliates as an additional insured and will include an express
waiver of subrogation by the insurer in favor of Landlord and Tenant and will
release Landlord from any claims for damage to any person, to the Premises,
and to the Project, and to Tenant's personal property, equipment,
improvements and alterations in or on the Premises of the Project, caused by
or resulting from risks which are to be insured against by Tenant under this
Lease. All insurance required to be provided by Tenant under this Lease will
(a) be issued by an insurance company authorized to do business in the state
in which the Premises are located and which has and maintains a rating of
B+/X in the Best's Insurance Reports or the equivalent, (b) be primary and
noncontributing with any insurance carried by Landlord, and (c) contain an
endorsement requiring at least thirty (30) days prior written notice of
cancellation to Landlord before cancellation or change in coverage, scope or
limit of any policy. Tenant will deliver a certificate of insurance or a copy
of the policy to Landlord within thirty (30) days of execution of this Lease
and will provide evidence of renewed insurance coverage at each anniversary,
and prior to the expiration of any current policies; however, in no event
will Tenant be allowed to occupy the Premises before providing adequate and
acceptable proof of insurance as stated above. Tenant's failure to provide
evidence of this coverage to Landlord within thirty (30) days of the
provision of written notice from Landlord, Landlord may, in Landlord's sole
discretion, constitute a default under this Lease.

12. INDEMNIFICATION AND WAIVER OF CLAIMS

         12.01 Tenant waives all claims against Landlord for damage to any
property in or about the Premises and for injury to any persons, including
death resulting therefrom, regardless of cause or time of occurrence. Tenant
will defend, indemnify and hold Landlord harmless from and against any and
all claims, actions, proceedings, expenses, damages and liabilities,
including attorney's fees, arising out of, connected with, or resulting from
any use of the Premises by Tenant, its employees, agents, visitors or
licensees, including, without limitation, any failure of Tenant to comply
fully with all of the terms and conditions of this Lease except for any
damage or injury which is the direct result of intentional acts by Landlord,
its employees, agents, visitors or licensees.

13.  REPAIRS

         13.01 Tenant shall, at its sole expense, keep and maintain the
Premises and every part thereof (excepting common use equipment, which
Landlord agrees to repair or replace pursuant to Section 5.02 unless damages
are due to the neglect or intentional acts of Tenant or its agents,
employees, visitors, or licensees), including interior windows, doors, plate
glass, any store fronts and the interior of the Premises, in good and
sanitary order, condition and repair. Tenant will, also, at its sole cost
keep and maintain all utilities, fixtures, plumbing and mechanical equipment
used by Tenant in good order and repair and furnish all expendables (light
bulbs, paper goods, soaps, etc.) used in the Premises. The standard for
comparison and need of repair will be the condition of the Premises at the
time of commencement of this Lease and all repairs will be made by a licensed
and bonded contractor approved by Landlord.

         13.02 Tenant will not make repairs to the Premises at the cost of
Landlord whether by deductions of rent or otherwise, or vacate the Premises
or terminate the Lease if repairs are not made. If during the Term, any
alteration, addition or change to the Premises is required by legal
authorities, Tenant, at its sole expense, shall promptly make the same.
Landlord reserves the right to make any such repairs not made or maintained
in good condition by Tenant and Tenant shall reimburse Landlord for all such
costs upon demand.

         13.03 If repairs deemed necessary by Landlord or any government
authority are not made by Tenant within the prescribed time frame as
requested in writing, such failure to repair shall be an Event of Default
subject to the provision of Section 19.01(B) hereof.

         13.04 Tenant shall, at its own expense, within thirty days of lease
commencement, contract with a vendor acceptable to Landlord for the
maintenance service of the HVAC which will be furnished to the Landlord upon
request. If Tenant fails to obtain and maintain such a maintenance service
contract Landlord shall have the right to obtain such a maintenance service
contract at the expense of Tenant.

14.  AUCTIONS, SIGNS, AND LANDSCAPING

         14.01 Tenant will not conduct or permit to be conducted any sale by
auction on the Premises. Landlord will have the right to control landscaping
and approve the placement, size, and quality of signs pursuant to Exhibit
"F", "Sign Criteria". Tenant shall have the right to place its name and logo
on the exterior facade of the Building subject to the provisions of this
Section 14.01 and Exhibit F. Landlord agrees to construct a monument sign at
the west access point of the Project of a size and design desired by Landlord
in Landlord's reasonable discretion. Landlord agrees that Tenant shall be
entitled to place its name and logo of an appropriate size on such monument
sign commensurate with Tenant's Proportionate Share as specified in Section
1.09 above. Tenant shall also be allowed

<PAGE>

to place a directional sign at the second access point at the east end of the
Project with a design and at a location approved by Landlord in Landlord's
sole and absolute discretion, the construction and maintenance of such sign
to be performed at Tenant's sole cost and expense. Tenant will not make
alterations or additions to the landscaping and will not place any signs nor
allow the placement of any signs, which are visible from the outside, on or
about any building of the Project, nor in any landscape area, without the
prior written consent of Landlord. Landlord will have the right in its sole
discretion to withhold its consent. Any signs not in conformity with this
Lease or in accordance with the provisions of this Section 14.01 and Exhibit
"F" may be removed by Landlord at Tenant's expense.

15.  ENTRY BY LANDLORD

         15.01 Tenant will permit Landlord and Landlord's agents to enter the
Premises at all reasonable times upon twenty-four (24) hours notice (except
in the case of emergency or as required by governmental or administrative
agency or by law, rule, or regulation, for which no prior notice is required)
for the purpose of inspecting the same, or for the purpose of maintaining the
Project, or for the purpose of making repairs, alterations or additions to
any portion of the Project, including the erection and maintenance of such
scaffolding, canopies, fences and props as may be required, or for the
purpose of posting notices of nonresponsibility for alterations, additions or
repairs , or for the purpose of showing the Premises to prospective tenants
during the last six months of the Lease Term, or placing upon the Project any
usual or ordinary "for sale" signs, without any rebate of rents and without
any liability to Tenant for any loss of occupation or quiet enjoyment of the
Premises thereby occasioned. Tenant will permit Landlord at any time within
sixty (60) days prior to the expiration of this Lease, to place upon the
Premises any usual or ordinary "to let" or "to lease" signs. Tenant will not
install a new or additional lock or any bolt on any door of the Premises
without the prior written consent of Landlord, which will not be unreasonably
withheld. If Landlord gives its consent, such work shall be undertaken by a
locksmith approved by Landlord, at Tenant's sole cost. Landlord retains the
right to charge Tenant for restoring any altered doors to their condition
prior to the installation of the new or additional locks.

16.  ABANDONMENT  [INTENTIONALLY DELETED]

17.  DESTRUCTION

         17.01 In the case of total destruction of the Premises, or any
portion thereof substantially interfering with Tenant's use of the Premises,
whether by fire or other casualty, not caused by the fault or negligence of
Tenant, its agents, employees, servants, contractors, subtenants, licensees,
customers or business invitees, this Lease shall terminate except as herein
provided. If Landlord notifies Tenant in writing within forty-five (45) days
of such destruction of Landlord's election to repair said damage, and if
Landlord proceeds to and does repair such damage with reasonable dispatch,
this Lease shall not terminate, but shall continue in full force and effect,
except that Tenant shall be entitled to a reduction in the Base Monthly Rent
in an amount equal to that proportion of the Base Monthly Rent which the
number of square feet of floor space in the unusable portion bears to the
total number of square feet of floor space in the Premises. Said reduction
shall be prorated so that the rent shall only be reduced for those days any
given area is actually unusable. In determining what constitutes reasonable
dispatch, consideration shall be given to delays caused by labor disputes,
civil commotion, war, warlike operations, invasion, rebellion, hostilities,
military or usurped power, sabotage, governmental regulations or control,
fire or other casualty, inability to obtain any materials or services, acts
of God and other causes beyond Landlord's control. If this Lease is
terminated pursuant to this Section 17 and if Tenant is not in default
hereunder, rent shall be prorated as of the date of termination, any security
deposited with Landlord shall be returned to Tenant, less any reasonable
offsets and all rights and obligations hereunder shall cease and terminate.

         17.02. Notwithstanding the foregoing provisions, in the event the
Premises, or any portion thereof, shall be damaged by fire or other casualty
due to the fault or negligence of Tenant, its agents, employees, servants,
contractors, subtenants, licensees, customers or business invitees, then,
without prejudice to any other rights and remedies of Landlord, this Lease
shall not terminate, the damage shall be repaired at Tenant's cost, and there
shall be no apportionment or abatement of any rent.

         17.03. In the event of any damage not limited to, or not including,
the Premises, such that the building of which the Premises is a part is
damaged to the extent of twenty-five (25%) percent or more of the cost of
replacement, or the buildings (taken in the aggregate) of the Project owned
by Landlord shall be damaged to the extent of more than twenty-five (25%) of
the aggregate cost of replacement, Landlord may elect to terminate this Lease
upon giving notice of such election in writing to Tenant within ninety (90)
days after the occurrence of the event causing the damage.

         17.04. The provisions of this Section 17 with respect to Landlord
shall be limited to such repair as is necessary to place the Premises in the
condition specified after completion of Landlord's work as shown on Exhibit B
(if applicable) and when placed in such condition the Leased Property shall
be deemed restored and rendered tenantable promptly following which time
Tenant, at Tenant's

<PAGE>

expense shall perform Tenant's work required by Exhibit B (if applicable) and
Tenant shall also repair or replace its stock in trade, fixtures, furniture,
furnishings, floor coverings and equipment, and if Tenant has closed, Tenant
shall promptly reopen for business.

         17.05. All insurance proceeds payable under any fire, and/or rental
insurance shall be payable solely to Landlord and Tenant shall have no
interest therein. Tenant shall in no case be entitled to compensation for
damages on account of any annoyance or inconvenience in making repairs under
any provision of this Lease. Except to the extent provided for in this
Section 17, neither the rent payable by Tenant nor any of Tenant's other
obligations under any provision of this Lease shall be affected by any damage
to or destruction of the Premises or any portion thereof by any cause
whatsoever.

18.  ASSIGNMENT, SUBLETTING AND TRANSFERS OF OWNERSHIP

         18.01 Tenant will not, without Landlord's prior written consent,
assign, sell, mortgage, encumber, convey or otherwise transfer all or any
part of Tenant's leasehold estate, or permit the Premises to be occupied by
anyone other than Tenant and Tenant's employees or sublet the premises or any
portion thereof (collectively called "Transfer"). Tenant must supply Landlord
with any and all documents deemed necessary by Landlord to evaluate any
proposed Transfer at least forty-five (45) days in advance of Tenant's
proposed Transfer date. Landlord will not unreasonably withhold consent
required under this section. The foregoing notwithstanding, Tenant may assign
its interest under this Lease to a wholly-owned subsidiary of Tenant without
the consent of Landlord, provided such subsidiary specifically assumes all
obligations of Tenant under this Lease and otherwise agrees to comply with
the terms and conditions of this Lease ("Permitted Transfer"). No such
Permitted Transfer shall release or otherwise affect Tenant's or any
guarantor's obligations under this Lease, or constitute an express or implied
consent to any other Transfer of all or any part of Tenant's leasehold
estate, or the occupation of the Premises by anyone other than Tenant or
Tenant's employees.

         18.02 Landlord need not consent to any Transfer (other than a
Permitted Transfer) for reasons including, but not limited to, whether or
not: (a) in the reasonable judgment of Landlord the transferee is of a
character or is engaged in a business which is not in keeping with the
standard of Landlord for the Project; (b) in the reasonable judgment of
Landlord any purpose for which the transferee intends to use the Premises is
not in keeping with the standards of Landlord for the Project; provided in no
event may any purpose for which transferee intends to use the Premises be in
violation of this Lease; (c) the portion of the Premises subject to the
transfer is not regular in shape with appropriate means of entering and
exiting, including adherence to any local, county or other governmental
codes, or is not otherwise suitable for the normal purposes associated with
such a Transfer; or (d) Tenant is in default under this Lease or any other
Lease with Landlord.

         18.03 In the event Landlord consents to a Transfer, Tenant will pay
Landlord one half of the excess, if any, of the rent and other charges
reserved in the Transfer over the allocable portion of the rent and other
charges hereunder for that portion of the Premises subject to the Transfer.
For the purpose of this section, the rent reserved in the Transfer will be
deemed to include any lump sum payment or other consideration given to Tenant
in consideration for the Transfer. Tenant will pay or cause the transferee to
pay to Landlord this additional rent together with the monthly installments
of rent due.

         18.04 Any consent to any Transfer which may be given by Landlord,
any Permitted Transfer, or the acceptance of any rent, charges or other
consideration by Landlord from Tenant or any third party, will not constitute
a waiver by Landlord of the provisions of this Lease or a release of Tenant
from the full performance by it of the covenants stated herein; and any
consent given by Landlord to any Transfer or Permitted Transfer will not
relieve Tenant (or any transferee of Tenant) from the above requirements for
obtaining the written consent of Landlord to any subsequent Transfer.

         18.05 If a default under this Lease should occur while the Premises
or any part of the Premises are assigned, sublet or otherwise transferred,
Landlord, in addition to any other remedies provided for within this Lease or
by law, may at its option collect directly from the transferee all rent or
other consideration becoming due to Tenant under the Transfer and apply these
monies against any sums due to Landlord by Tenant; and Tenant authorizes and
directs any transferee to make payments of rent or other consideration direct
to Landlord upon receipt of notice from Landlord. No direct collection by
Landlord from any transferee should be construed to constitute a novation or
a release of Tenant or any guarantor of Tenant from the further performance
of its obligations in connection with this Lease.

         18.06 [INTENTIONALLY DELETED]

         18.07 In the event Tenant requests Landlord's consent to an
Assignment, Sub-Let or Transfer of Tenant's interest in the leased Premises,
Tenant agrees to pay Landlord all reasonable attorney's

<PAGE>

fees incurred by Landlord for any legal services for document review of any
and all documents deemed necessary by Landlord and Tenant to Assign, Sub-let
or Transfer Tenant's interest in the leased Premises.

19.  EVENTS OF DEFAULT

         19.01 Events of Default. Any one or more of the following shall
constitute an "EVENT OF DEFAULT" under this Lease:

         (A) Failure by Tenant to pay any installment of Basic Rent,
Additional Rent or of any other sum provided for under this Lease (whether or
not treated as Additional Rent hereunder) for a period of ten (10) days from
the date such payment was due;

         (B) Failure by Tenant to perform or observe in any material respect
any term, covenant, provision, condition or obligation contained in this
Lease which failure shall continue for a period of fifteen (15) days after
written notice thereof by Landlord to Tenant (or forthwith if the default
involves a hazardous or damaging condition); provided, however, that if
Tenant's obligation is of such a nature that more than fifteen (15) days are
required for its performance, then Tenant shall not be deemed to be in
default hereunder if Tenant shall commence such performance within said
15-day period and thereafter proceeds diligently to prosecute the same to
completion within the 30-day period following receipt of Landlord's notice;

         (C) Any removal or attempted removal, without the prior
authorization of Landlord, of any of Tenant's fixtures, equipment, appliances
or personal property from the Premises for any reason other than in the
normal and usual operation of Tenant's business which evidences the intent of
Tenant to abandon the Premises;

         (D) Abandonment of the Premises by Tenant as hereinafter defined in
Section 20.08;

         (E) Failure by Tenant to vacate the Premises immediately upon
expiration or earlier termination of this Lease;

         (F) Any levy or attachment upon the leasehold interest of Tenant
under this Lease;

         (G) An assignment by Tenant for the benefit of creditors or the
appointment of a receiver for Tenant by legal proceedings or otherwise; or

         (H) Institution of bankruptcy proceedings by Tenant, or institution
of bankruptcy proceedings against Tenant which are not withdrawn or dismissed
within 60 days after the institution of said proceedings; provided, however,
that, if a bankruptcy proceedings is commenced against Tenant and Tenant,
within 30 days of the commencement of same, challenges the commencement of
same and thereafter diligently pursues such challenge, then Tenant shall not
be deemed in default under this paragraph unless and until the United States
Bankruptcy Court enters an order adjudicating such challenge.

20.  REMEDIES OF LANDLORD

         20.01 Acceleration of Rent; Lease Termination. If Tenant commits, or
allows an Event of Default to occur, the entire Rent for the remaining
balance of the Term shall, at Landlord's option, immediately become due and
payable as if by the terms of this Lease it were all payable in advance. In
such event, Landlord shall serve upon Tenant written notice of such
acceleration. At such time Landlord may also serve on Tenant written notice
as to the effective date of termination of this Lease or, at Landlord's
option, termination of Tenant's right to possession of the Premises without
terminating this Lease. In such event Tenant shall have no right to avoid
such termination by payment of any sum due or by the performance of any
condition, obligation, term or covenant broken, but immediately shall
surrender quiet and peaceable possession of the Premises to Landlord.
Notwithstanding any statute, rule of law or decision of any court to the
contrary, Tenant shall remain liable, even after termination of this Lease,
for Rent (including accelerated Rent) due or to become due hereunder and for
all damages caused by any or all of Tenant's non-payment defaults under this
Lease. Notwithstanding the foregoing, the provisions set forth in this
section concerning the acceleration of Rent shall not be applicable solely as
a consequence of Landlord's or Tenant's election to terminate this Lease
pursuant to the provisions hereof.

         20.02 Right of Landlord to Perform. All covenants and agreements to
be performed by Tenant under any of the terms of this Lease shall be
performed by Tenant at Tenant's sole cost and expense and without any
abatement of rent. If Tenant shall fail to pay any sum of money, other than
Rent, required to be paid by it hereunder, or shall fail to perform any other
act on its part to be performed hereunder, and such failure shall continue
for 10 days after notice thereof by Landlord, Landlord may, but shall not be
obligated so to do, and without waiving or releasing Tenant from any

<PAGE>

obligations of Tenant, make any such payment or perform any such act on
Tenant's part to be made or performed as in this Lease provided. All sums so
paid by Landlord and all necessary incidental costs, together with interest
thereon at the Agreed Interest Rate from the date of such payments by
Landlord, shall be payable as Additional Rent to Landlord on demand, and
Tenant covenants to pay any such sums, and Landlord shall have, in addition
to any other right or remedy of Landlord, the same rights and remedies in the
event of nonpayment thereof by Tenant as in the case of default by Tenant in
the payment of the Rent.

         20.03 Reentry, Reletting. In case this Lease or Tenant's right to
possession of the Premises shall be terminated as aforesaid, then Landlord,
may, without notice, reenter the Premises, with or without the aid of legal
process, repossess the Premises, expel or remove Tenant and any others who
may be occupying or within the Premises and remove their property from the
Premises (without being deemed in any manner guilty of trespass, eviction or
forcible entry or detainer, and without incurring any liability for any
damage resulting therefrom, such claims for damages hereby waived by Tenant)
and terminate all services to Tenant, if any. If at any time, the Premises
become abandoned, Landlord may also proceed in accordance with Section 20.08.
Landlord may, but need not, use commercially reasonable efforts to attempt to
relet the Premises or any part thereof. Such reletting may at Landlord's
option be for a term which is less than or exceeds the period which would
otherwise have constituted the balance of the Term, and Landlord may grant
concessions or free rent or make improvements or additions to the Premises in
order to facilitate reletting of the same, so long as Landlord's actions are
commercially reasonable. Landlord shall not be required to accept any tenant
offered by Tenant or to observe any instructions given by Tenant about such
reletting. Landlord shall receive and collect all rents received from such
reletting (during the balance of the Term) and shall first apply such rents
against the expenses which Landlord may have incurred in recovering
possession of the Premises, placing the same in good order and condition for
re-letting and such other expenses (including brokers' commissions,
attorneys' fees and other legal costs) which Landlord may have incurred in
connection with such repossession and reletting, and apply the remaining
rentals as credits against all rentals due and owing from Tenant to Landlord.
The balance, if any, may be retained by Landlord. No such reentry by Landlord
shall be deemed to be an acceptance of surrender by Tenant of this Lease or
of the Premises.

         20.04 Acceptance of Delinquent Rentals. The acceptance by Landlord
of delinquent rentals hereunder with knowledge of a breach by Tenant of any
covenant herein or condition broken shall not in and of itself be deemed a
waiver of such breach of condition broken, and any pending eviction
proceedings or actions for monetary damages may be prosecuted further by
Landlord without prejudice based upon this action alone.

         20.05 (A) In the event of default under this Lease by Tenant, in
addition to any other rights or remedies provided for herein or at law or in
equity, Landlord, at its sole option, shall have the following rights:

                  (1) The right to declare the term of this Lease ended and
reenter the Premises and take possession thereof, and to terminate all of the
rights of Tenant in and to the Premises.

                  (2) The right, without declaring the term of this Lease
ended, to reenter the Premises and to occupy the same, or any portion there
of, for and on account of the Tenant as hereinafter provided, and Tenant
shall be liable for and pay to Landlord on demand all such expenses as
Landlord may have paid, assumed or incurred in recovering possession of the
Premises, including costs, expenses, attorney's fees and expenditures placing
the same in good order, or preparing or altering the same for reletting, and
all other expenses, commissions and charges paid by the Landlord in
connection with reletting the Premises. Any such reletting may be for the
remainder of the term of this Lease or for a longer or shorter period. Such
reletting shall be for such rent and on such other terms and conditions as
Landlord, in its sole discretion, deems appropriate. Landlord may execute any
lease made pursuant to the terms hereof either in the Landlord's own name or
in the name of Tenant or assume Tenant's interest in any existing subleases
to any tenant of the Premises, as Landlord may see fit, and Tenant shall have
no right or authority whatsoever to collect any rent from such tenants,
subtenants, of the Premises. In any case, and whether or not the Premises or
any part thereof is relet, Tenant, until the end of the Lease term shall be
liable to Landlord for an amount equal to the amount due as Rent hereunder,
less net proceeds, if any of any reletting effected for the account of
Tenant. Landlord reserves the right to bring such actions for the recovery of
any deficits remaining unpaid by the Tenant to the Landlord hereunder as
Landlord may deem advisable from time to time without being obligated to
await the end of the term of the Lease. Commencement of maintenance of one or
more actions by the Landlord in this connection shall not bar the Landlord
from bringing any subsequent actions for further accruals. In no event shall
Tenant be entitled to any excess rent received by Landlord over and above
that which Tenant is obligated to pay hereunder; or

                  (3) The right, even though it may have relet all or any
portion of the Premises in accordance with the provisions of subsection (2)
above, to thereafter at any time elect to terminate this Lease for such
previous default on the part of the Tenant, and to terminate all the rights
of Tenant in and to the Premises.

<PAGE>

         (B) If Tenant breaches this Lease and abandons the Premises before
the end of the term, or if its right of possession is terminated by Landlord
because of Tenant's breach of this Lease, then this Lease may be terminated
by Landlord at its option. On such termination Landlord may recover from
Tenant, in addition to the remedies permitted at law and otherwise under this
Lease:

                  (1) The worth, at the time of the award, of the unpaid Base
Monthly Rents and Additional Rents which had been earned at the time this Lease
is terminated;

                  (2) The worth, at the time of the award, of the amount by
which the unpaid Base Monthly Rents and Additional Rents which would have been
earned after the date of termination of this Lease until the time of award
exceeds the amount of the loss of rents that Tenant proves could be reasonably
avoided;

                  (3) The worth, at the time of the award, of the amount by
which the unpaid Base Monthly Rent and Additional Rents for the balance of the
Lease Term after the time of award exceeds the amount of such rental loss for
such period as the Tenant proves could have been reasonably avoided; and

                  (4) Any other amount, and court costs, necessary to compensate
Landlord for all detriment proximately caused by Tenant's breach of its
obligations under this Lease, or which in the ordinary course of events would be
likely to result therefrom. The detriment proximately caused by Tenant's breach
will include, without limitation, (i) expenses for cleaning, repairing or
restoring the Premises, (ii) expenses for altering, remodeling or otherwise
improving the Premises for the purpose of reletting the Premises, (iii) brokers'
fees and commissions, advertising costs and other expenses of reletting the
Premises, (iv) costs of carrying the Premises such as taxes, insurance premiums,
utilities and security precautions, (v) expenses of retaking possession of the
Premises, (vi) reasonable attorney's fees and court costs, (vii) any unearned
brokerage commissions paid in connection with this Lease, (viii) reimbursement
of any previously waived Base Rent, Additional Rent, free rent or reduced rental
rate, and (ix) any concession made or paid by Landlord to the benefit of Tenant
in consideration of this Lease including, but not limited to, any moving
allowances, contributions or payments by Landlord for tenant improvements or
build-out allowances or assumptions by Landlord of any of the Tenant's previous
lease obligations.

         20.06 Cumulative Remedies. All of Landlord's rights and remedies herein
set forth (as well as those provided for at law and in equity) shall be
cumulative and not exclusive and may be pursued simultaneously or separately at
the sole option of Landlord. The pursuit of any remedy shall not constitute a
waiver or forfeiture of any Rent or other sum due to Landlord hereunder or any
damages accruing to Landlord by reason of the violation of any of the terms,
provisions and covenants herein contained. No act or thing done by Landlord or
any of its agents shall be deemed a termination of this Lease or acceptance of
the surrender of the Premises, and no agreement to terminate this Lease or
accept a surrender of the Premises shall be valid unless in writing and signed
by a duly authorized agent of Landlord. Forbearance by Landlord in enforcing one
or more of the rights or remedies provided herein or under law upon an Event of
Default shall not be deemed or constitute a waiver of such default or of
Landlord's right to enforce any such rights or remedies with respect to such
default or any subsequent default. If, on account of any breach or default by
Tenant in Tenant's obligations under this Lease, it becomes necessary or
appropriate for Landlord to employ or consult with an attorney concerning or to
enforce or defend any of Landlord's rights or remedies hereunder or under law,
Tenant agrees to pay such fees so incurred by Landlord upon demand therefor.

         20.07    INTENTIONALLY DELETED.

         20.08    Abandonment.

         (A) Abandonment of the Premises by Tenant shall constitute an Event of
Default under this Lease and shall entitle Landlord, at its sole option, to
exercise any of Landlord's remedies set forth herein or under applicable law.
Tenant shall be deemed to have abandoned the Premises if Tenant, without the
prior consent of Landlord, removes all or substantially all of Tenant's
furniture, equipment, appliances and personal property from the Premises and
Tenant is delinquent in the payment of the Rent due hereunder for more than 30
days.

         (B) Upon abandonment of the Premises by Tenant as aforesaid, Landlord
shall make a good faith effort to serve written notice on Tenant (to the effect
that, unless Tenant immediately cures its default by bringing its rent payments
current and by giving Landlord adequate assurance that
<PAGE>

Tenant is willing and able to perform its obligations under this Lease,
Landlord intends to reenter the Premises and take possession thereof and
that, if Landlord does so, Landlord may dispose of any remaining furniture,
fixtures, equipment, appliances and personal property of Tenant); and shall
also post the Premises with such notice. Both actions may be taken
concurrently by Landlord, if Landlord elects to proceed under this section.

         (C) At any time more than five business days after the giving of the
aforesaid notice to Tenant and the posting of the Premises (whichever shall
later occur), Landlord may reenter the Premises and retake possession of the
same on behalf of Tenant (such action by Landlord, however, shall not be
deemed or construed to be an acceptance of surrender of possession of the
Premises by Tenant unless otherwise stated in Landlord's notice to Tenant).

         (D) Further in the event of Landlord's reentry into the Premises as
aforesaid, Landlord may take possession of any such remaining furniture,
fixtures, equipment, appliances and personal property of Tenant in and about
the Premises and, 10 days or more after said reentry, Landlord may sell or
dispose of the same in a commercially reasonable manner; provided, however,
that, if, prior to said sale or disposal, Tenant requests return of such
property and simultaneously pays all delinquent rents and all of Landlord's
reasonable expenses (including attorneys' fees and other legal costs) arising
out of Tenant's abandonment, then Landlord shall return Tenant's property to
Tenant. The proceeds received from any sale of Tenant's property by Landlord
shall be applied as a credit against any delinquent rentals and expenses
(including reasonable attorneys' fees and other legal costs). The balance, if
any, shall be remitted to Tenant.

         (E) Property which may be removed from the Premises by Landlord
pursuant to the authority of this section or any other provision of this Lease
or by law, to which Tenant is or may be entitled, may be handled, removed and
stored, as the case may be, by or at the direction of Landlord at the risk, cost
and expense of Tenant, and Landlord shall in no event by responsible for the
value, preservation or safekeeping thereof. Tenant shall pay to Landlord upon
demand, any and all expenses incurred in such removal and all storage charges
against such property so long as the same shall be in Landlord's possession or
under Landlord's control. Any such property not retaken by Tenant within 30 days
after removal from the Premises shall, at Landlord's option, be deemed conveyed
to Landlord under this Lease as by a bill of sale without further payment or
credit by Landlord to Tenant.

         20.09 Past Due Sums; Interest. If Tenant fails to pay, when the same is
due and payable, any Basic Rent, Additional Rent or other sum required to be
paid by it hereunder, such unpaid amounts shall bear interest beginning on the
due date thereof to the date of payment at the Agreed Interest Rate.
Notwithstanding the foregoing, however, Landlord's right concerning such
interest shall be limited by the maximum amount which may properly be charged by
Landlord for such purposes under applicable law.

         20.10 Right of Landlord to Cure. If Tenant contends that Landlord shall
have failed to perform any act required of it hereunder, to satisfy any of its
obligations hereunder or to observe any provision of this Lease, Tenant shall,
before exercising any right or remedy available to it, give Landlord written
notice of the claimed breach, default or noncompliance. If, prior to its giving
such notice, Tenant has been notified in writing of the address of a lender
which has furnished any of the financing referred to in Article 31.,
concurrently with giving the aforesaid notice to Landlord, Tenant shall, by
registered or certified mail, transmit a copy thereof to such lender. For the 45
days following the giving of the notice(s) required by the foregoing portion of
this section (or such longer period of time as may be reasonably required to
cure a matter which, due to its nature, cannot reasonably be rectified within 45
days), Landlord shall have the right to cure the breach, default or
noncompliance involved. If Landlord has failed to cure a default within said
period, any such lender shall have an additional 15 days within which to cure
the same or, if such default cannot be cured within that period, such additional
time as may be necessary if within such 15-day period said lender has commenced
and is diligently pursuing the actions or remedies necessary to cure the breach,
default or noncompliance involved (including commencement and prosecution of
proceedings to foreclose or otherwise exercise its rights under its mortgage or
other security instrument, if necessary to effect such cure), in which event
this Lease shall not be terminated by Tenant so long as such actions or remedies
are being diligently pursued by said lender.

21.  SURRENDER OF LEASE NOT MERGER

          21.01 The voluntary or other surrender of this Lease by Tenant, or
mutual cancellation thereof, will not work a merger and will, at the option
of Landlord, terminate all or any existing transfers, or may, at the option
of Landlord, operate as an assignment to it of any or all of such transfers.

22.  ATTORNEYS FEES/COLLECTION CHARGES

<PAGE>

         22.01 In the event of any legal action or proceeding between the
parties hereto, reasonable attorneys' fees and expenses of the prevailing
party in any such action or proceeding will be added to the judgment therein.
Should Landlord be named as defendant in any suit brought against Tenant in
connection with or arising out of Tenant's occupancy hereunder, Tenant will
pay to Landlord its costs and expenses incurred in such suit, including
reasonable attorney's fees, unless Landlord is found to be liable.

         22.02 If Landlord utilizes the services of any attorney at law for
the purpose of collecting any rent due and unpaid by Tenant after written
notice to Tenant of such nonpayment of rent or in connection with any other
breach of this Lease by Tenant, Tenant agrees to pay Landlord reasonable
attorneys' fees as determined by Landlord for such services, regardless of
the fact that no legal action may be commenced or filed by Landlord

23.  CONDEMNATION

         23.01 If twenty-five percent (25%) or more of the square footage of
the Premises is taken for any public or quasi-public purpose by any lawful
government power or authority, by exercise of the right of appropriation,
reverse condemnation, condemnation or eminent domain, or sold to prevent such
taking, and if the remaining portion of the Premises will not be reasonably
adequate for the operation of Tenant's business after Landlord completes such
repairs or alterations as Landlord elects to make, either Tenant or the
Landlord may at its option terminate this Lease by notifying the other party
hereto of such election in writing within twenty (20) days after such taking.
Tenant will not because of such taking assert any claim against the Landlord
or the taking authority for any compensation because of such taking, and
Landlord will be entitled to receive the entire amount of any award without
deduction for any estate of interest of Tenant. If less than twenty-five
percent (25%) of the Premises is taken, Landlord at its option may terminate
this Lease. If Landlord does not so elect, Landlord will promptly proceed to
restore the Premises to substantially its same condition prior to such
partial taking, allowing for any reasonable effects of such taking, and a
proportionate allowance based on the loss of square footage will be made to
Tenant for the rent corresponding to the time during which, and to the part
of the Premises, which, Tenant is deprived on account of such taking and
restoration.

24.  RULES AND REGULATIONS

         24.01 Tenant will faithfully observe and comply with any Rules and
Regulations promulgated by Landlord for the Project and Landlord reserves the
right to modify and amend them as it deems necessary. Landlord will not be
responsible to Tenant for the nonperformance by any other Tenant or occupant
of the Project of any of said Rules and Regulations.

         24.02 In the event that Tenant violates any such Rules and
Regulations (subject to the cure period of Section 19.01(B) hereof), such
failure to cure shall be deemed a material breach of this Lease by Tenant.

25.  ESTOPPEL CERTIFICATE

         25.01 Tenant will execute and deliver to Landlord, within ten (10)
business days of Landlord's written demand, a statement in writing certifying
that this Lease is in full force and effect, and that the Base Monthly Rent
and Additional Rent payable hereunder is unmodified and in full force and
effect (or, if modified, stating the nature of such modification) and the
date to which rent and other charges are paid, if any, and acknowledging that
there are not, to Tenant's knowledge, any uncured defaults on the part of
Landlord hereunder or specifying such defaults if they are claimed and such
other matters as Landlord may reasonably request. Any such statement may be
conclusively relied upon by any prospective purchaser or encumbrance of the
Premises. In the event Tenant does not respond to Landlord's initial demand
for such statement, Landlord shall submit a second demand ("Second Demand")
for such statement. Tenant's failure to deliver such statement within ten
business days of the Second Demand shall be conclusive upon Tenant that (1)
this Lease is in full force and effect, without modification except as may be
represented by Landlord; (2) there are no uncured defaults in Landlord's
performance and (3) not more than one (1) month's rents has been paid in
advance.

26.  SALE BY LANDLORD

         26.01 In the event of a sale or conveyance by Landlord of the
Project the same shall operate to release Landlord from any liability upon
any of the covenants or conditions, expressed or implied, herein contained in
favor of Tenant, and in such event Tenant agrees to look solely to the
responsibility of the successor in interest of Landlord in and to this Lease.
This Lease will not be affected by any such sale, and Tenant agrees to attorn
to the purchaser or assignee.

27.  NOTICES

<PAGE>

         27.01 All notices, statements, demands, requests, consents,
approvals, authorizations, offers, agreements, appointments, or designations
under this Lease by either party to the other will be in writing and will be
considered sufficiently given and served upon the other party if sent by
certified or registered mail, return receipt requested, postage prepaid,
delivered personally, or by a national overnight delivery service and
addressed as indicated in 1.03 and 1.04.

28.  WAIVER

         28.01 The failure of Landlord to insist in any one or more cases
upon the strict performance of any term, covenant or condition of the Lease
will not be construed as a waiver of a subsequent breach of the same or any
other covenant, term or condition; nor shall any delay or omission by
Landlord to seek a remedy for any breach of this Lease be deemed a waiver by
Landlord of its remedies or rights with respect to such a breach.

29.  HOLDOVER

         29.01 If Tenant remains in the Premises after the Lease Expiration
date with the consent of the Landlord, and has not given prior written notice
to Landlord, such continuance of possession by Tenant will be deemed to be a
month-to-month tenancy at the sufferance of Landlord terminable on thirty
(30) day notice at any time by either party. All provisions of this Lease,
except those pertaining to term and rent, will apply to the month-to-month
tenancy. Tenant will pay a new Base Monthly Rent in an amount equal to 150%
of the base monthly rent payable for the last full calendar month during the
regular term of this Lease.

30.  DEFAULT OF LANDLORD/LIMITATION OF LIABILITY

         30.01 In the event of any default by Landlord hereunder, Tenant
agrees to give notice of such default, by registered mail, to Landlord at
Landlord's Notice Address as stated in 1.04 and to offer Landlord a
reasonable opportunity to cure the default. In the event of any actual or
alleged failure, breach or default hereunder by Landlord, Tenant's sole and
exclusive remedy will be against Landlord's interest in the Project, and
Landlord, its directors, officers, employees and any partner of Landlord will
not be sued, be subject to service or process, or have a judgement obtained
against him in connection with any alleged breach or default, and no writ of
execution will be levied against the assets of any partner, shareholder or
officer of Landlord. The covenants and agreements are enforceable by Landlord
and also by any partner, shareholder or officer of Landlord.

31.  SUBORDINATION

         31.01 Without the necessity of any additional document being executed
by Tenant for the purpose of effecting a subordination, and at the election of
Landlord or any mortgagee with a lien on the Project or any ground lessor with
respect to the Project, this Lease will be subject and subordinate at all times
to (a) all ground leases or underlying leases which may now exist or hereafter
be executed affecting the Project, and (b) the lien of any mortgage or deed of
trust which may now exist or hereafter be executed in any amount for which the
Project, ground leases or underlying leases, or Landlord's interest or estate in
any of said items is specified as security. In the event that any ground lease
or underlying lease terminates for any reason or any mortgage or deed of trust
is foreclosed or a conveyance in lieu of foreclosure is made for any reason,
Tenant will, notwithstanding any subordination, attorn to and become the Tenant
of the successor in interest to Landlord, at the option of such successor in
interest. Tenant covenants and agrees to execute and deliver to Landlord any
document or instrument reasonably requested by Landlord or its ground lessor,
mortgagee or beneficiary under a deed of trust evidencing such subordination of
this Lease with respect to any such ground lease or underlying leases or the
lien of any such mortgage or deed of trust, within ten business days of request
by Landlord. In the event Tenant does not so respond to Landlord's first request
for such document, Landlord shall supply Tenant with a second request ("Second
Request") for such document. If Tenant fails to respond to the Second Request
within ten business days, Tenant hereby irrevocably appoints Landlord as
attorney-in-fact of Tenant to execute, deliver and record any such document in
the name and on behalf of Tenant.

32.  DEPOSIT AGREEMENT

         32.01  INTENTIONALLY DELETED.

33.  GOVERNING LAW

         33.01 This Lease has been consummated in and shall be construed under
the laws of the State of Nevada.

<PAGE>

34.  NEGOTIATED TERMS

         34.01 This Lease is the result of the negotiations of the parties
and has been agreed to by both Landlord and Tenant after prolonged discussion.

35.  SEVERABILITY

         35.01 If any provision of this Lease is found to be unenforceable, all
other provisions shall remain in full force and effect.

36.  BROKERS

         36.01 Tenant warrants that it has had no dealings with any broker or
agent in connection with this Lease, except Grubb and Ellis-Nevada Commercial
Group (Dave Schuster) and covenants to pay, hold harmless and indemnify Landlord
from and against any and all cost, expense or liability for any compensation,
commissions and charges claimed by any broker or agent, other than any
identified above, with respect to this Lease or its negotiation.

37.  QUIET POSSESSION

         37.01 Tenant, upon paying the rentals and other payments herein
required from Tenant, and upon Tenant's performance of all of the terms,
covenants and conditions of this Lease on its part to be kept and performed, may
quietly have, hold and enjoy the Premises during the Term of this Lease without
disturbance from Landlord or from any other person claiming through Landlord.

38.  MISCELLANEOUS PROVISIONS

         38.01 Whenever the singular number is used in this Lease and when
required by the context, the same will include the plural, and the masculine
gender will include the feminine and neuter genders, and the word "person" will
include corporation, firm, partnership, or association. If there is more than
one Tenant, the obligations imposed upon Tenant under this Lease will be joint
and several.

         38.02 The headings or titles to paragraphs of this Lease are not a part
of this Lease and will have no effect upon the construction or interpretation of
any part of this Lease.

         38.03 This instrument contains all of the agreements and conditions
made between the parties to this Lease. Tenant acknowledges that neither
Landlord nor Landlord's agents have made any representation or warranty as to
the suitability of the Premises to the conduct of Tenant's business. Any
agreements, warranties or representations not expressly contained herein will in
no way bind either Landlord or Tenant, and Landlord and Tenant expressly waive
all claims for damages by reason of any statement, representation, warranty,
promise or agreement, if any, not contained in this Lease.

         38.04  Time is of the essence of each term and provision of this Lease.

         38.05 Except as otherwise expressly stated, each payment required to be
made by Tenant is in addition to and not in substitution for other payments to
be made by Tenant.

         38.06 Subject to Article 18, the terms and provisions of this Lease are
binding upon and inure to the benefit of the heirs, executors, administrators,
successors and assigns of Landlord and Tenant.

         38.07 All covenants and agreements to be performed by Tenant under any
of the terms of this Lease will be performed by Tenant at Tenant's sole cost and
expense and without any abatement of rent.

         38.08 In consideration of Landlord's covenants and agreements
hereunder, Tenant hereby covenants and agrees not to disclose any terms,
covenants or conditions of this Lease to any other party without the prior
written consent of Landlord.

         38.09 Tenant agrees it will provide to Landlord such financial
information as Landlord may reasonably request for the purpose of obtaining
construction and/or permanent financing for the Premises.

         38.10 If Tenant shall request Landlord's consent and Landlord shall
fail or refuse to give such consent, Tenant shall not be entitled to any damages
for any withholding by Landlord of its consent; Tenant's sole remedy shall be an
action for specific performance or injunction, and such

<PAGE>

remedy shall be available only in those cases where Landlord has expressly
agreed in writing not to unreasonably withhold its consent or where as a
matter of law Landlord may not unreasonably withhold its consent.

         38.11 Whenever a day is appointed herein on which, or a period of time
is appointed in which, either party is required to do or complete any act,
matter or thing, the time for the doing or completion thereof shall be extended
by a period of time equal to the number of days on or during which such party is
prevented from, or is reasonably interfered with, the doing or completion of
such act, matter or thing because of labor disputes, civil commotion, war,
warlike operation, sabotage, governmental regulations or control, fire or other
casualty, inability to obtain materials, or to obtain fuel or energy, weather or
other acts of God, or other causes beyond such party's reasonable control
(financial inability excepted); provided, however, that nothing contained herein
shall excuse Tenant from the prompt payment of any Rent or charge required of
Tenant hereunder.

39.  CHANGE ORDERS

         39.01 All changes to the Premises and/or Landlord's Work requested by
Tenant shall be referred to herein as "Change Orders." Tenant may request and/or
approve changes to the Premises and/or Landlord's Work being provided by or
through Landlord in writing to Landlord and Landlord's contractor. All such
Change Orders shall be subject to Landlord's and Landlord's contractor's
reasonable review and approval, which shall not be unreasonably withheld, but
which approval may be based upon, without limitation, (1) Landlord's
contractor's construction schedule and any delays resulting from the
construction of the work required by the desired Change Order, (2) the required
time to prepare and complete plans, drawings, and specifications for the work
required by the desired Change Order, (3) the availability of subcontractors and
materials to complete the work required by such Change Order, (4) whether the
work required by the desired Change Order is likely to (A) adversely affect
Building systems or the structure or safety of the Building and/or its
occupants, (B) impair Landlord's ability to furnish services to Tenant or other
tenants in the Building, (C) materially increase the cost of operating the
Building, (D) violate any governmental or administrative requirements, or any
laws, rules, regulations, codes, or ordinances, (E) contain or use Hazardous
Waste (as defined in Article 7. above), or (F) adversely affect the appearance
of the Building, and (5) any other matters reasonably deemed pertinent by
Landlord or Landlord's contractor. Tenant agrees to pay all the direct and
indirect costs of additional work required by such Change Orders, including,
without limitation, Landlord's contractor's overhead and profit, and the cost of
all plans, drawings, specifications, permits, fees, labor, and materials (the
"Change Order Cost") in accordance with the provisions of this Section 39.01.
The cumulative Change Order Cost in excess of One Hundred Thousand Dollars
($100,000) shall be paid within ten (10) days of receipt of a billing therefor
from Landlord. The Change Order Cost up to One Hundred Thousand Dollars
($100,000), together with interest accruing at the rate of ten and one-half
percent (10.5%) per annum on the declining principal balance of such amount,
shall be added to the amounts of Base Monthly Rent specified in Section 1.07
above and paid over a five (5) year period commencing on the Commencement Date,
which amount shall be included in and payable as additional Base Monthly Rent
commencing on the Commencement Date and continuing on the first (1st) day of
each succeeding month thereafter for the above described five (5) year period.
Landlord shall give Tenant notice of the amount of additional Base Monthly Rent
payable pursuant to this Section 39.01; provided, however, that the failure of
Landlord to provide such notice shall not be construed as a waiver of the
payment of such amount. In the event this Lease terminates prior to the
expiration of such five (5) year period for any reason other than (1) a default
by Landlord hereunder, or (2) a termination pursuant to Section 17.01 above
resulting from damage or destruction to the Premises or Project, then Tenant
agrees to pay to Landlord the unamortized portion of the Change Order Costs
within ten (10) days after such termination. Landlord agrees to bill Tenant only
upon receipt of a billing for the Change Order Cost attributable to such work
from Landlord's contractor, subcontractors, or suppliers. All Change Order Costs
shall constitute Additional Rent due under this Lease.

40.  SPECIAL PROVISIONS

         40.01 Special provisions of this Lease number 41 through 42 and
Exhibits A through G are attached hereto and made a part hereof.

<PAGE>

41.  RENEWAL OPTIONS

         41.01 Tenant is hereby granted two (2) options (each, an "Extension
Option," and collectively, the "Extension Options,") to extend the Lease Term
for an additional term of five (5) years (each, an "Extension Term" and
collectively, the "Extension Terms") each beginning on the day after
expiration of the Initial Lease Term or the first Extension Term, as the case
may be, and expiring on the date five (5) years thereafter (unless terminated
sooner pursuant to any other terms or provisions of the Lease), on all of the
same terms and conditions as set forth in the Lease, but at an adjusted Base
Monthly Rent as set forth in Section 41.02 below (and without any additional
option to extend the Lease Term after the expiration of the second Extension
Term). The Extension Options may be exercised by Tenant only by delivery of
written notice of such exercise (the "Extension Notice") to Landlord, which
Extension Notice must be received by Landlord at least one hundred eighty
(180) days before the expiration of the Initial Lease Term, or the first
Extension Term, as applicable. If Tenant fails to timely deliver the
Extension Notice, or if this Lease is terminated pursuant to any of its other
terms or provisions prior to the expiration of the Initial Lease Term or the
first Extension Term, as the case may be, all remaining Extension Options
shall lapse, and Tenant shall have no right to extend or further extend the
Lease Term. Each Extension Option shall be exercisable by Tenant on the
express conditions that (1) at the time of delivery of Tenant's Extension
Notice and at all times thereafter and prior to the commencement of the
applicable Extension Term, Tenant shall not be in default under this Lease,
(2) Tenant has not previously been in default (whether or not such default
has been timely cured) under this Lease on more than three (3) occasions
during the Lease Term, and (3) Tenant has not Transferred all or any portion
of its interest under this Lease, it being understood that the Extension
Options are personal to the original named Tenant under this Lease. After
exercise of each Extension Option by Tenant in accordance with the foregoing
provisions, Tenant's obligation to renew shall be irrevocable by Tenant.

         41.02 Base Monthly Rent during each thirty (30) month period of each
Extension Term shall be computed as follows. As used herein, the term,
"Extension Adjustment Month," shall mean the first (1st) and thirty-first
(31st) months of each Extension Term, the term, "Extension Comparison Index,"
shall mean the Index published and which is in effect the third month
preceding the commencement of the applicable Extension Adjustment Month, and
the term, "Beginning Index," shall mean the Index published which is in
effect during the eighty-eighth (88th) month of the Lease Term. Base Monthly
Rent for each thirty (30) month period during each Extension Term shall be
the product of the Base Monthly Rent as specified in Section 1.07 above (for
months 91-120 of the Initial Lease Term) multiplied by a fraction, the
numerator being the applicable Extension Comparison Index and the denominator
being the Beginning Index. In no event, however, shall the Base Monthly Rent
during any period of any Extension Term be less than the Base Monthly Rent
due during the immediately preceding period of the Lease Term. Landlord will
give Tenant notice of each increase by written invoice; however, failure of
Landlord to give such notice shall not be construed as a waiver of the
increase and any such increased amount shall accrue as rent. If after this
Lease is executed, the Index is discontinued or revised during the Extension
Term, Landlord reserved the right to use a conversion factor, formula or
table as may be published by the Bureau of Labor Statistics or a different
Index in order to obtain substantially the same result.

42.      RIGHT OF FIRST OFFER ON ADJACENT PREMISES.

         42.01 Tenant acknowledges that Landlord has not yet leased the
remaining portion of the Project consisting of approximately ninety-nine
thousand (99,000) square feet (the "Adjacent Premises"), located immediately
north of the Premises. Tenant agrees that Landlord shall have the right to lease
all or any portion of the Adjacent Premises to any person or entity, in any
manner, and at any time Landlord desires, in Landlord's sole and absolute
discretion, and Tenant shall have no right or interest with respect thereof,
except as set forth in this Article 42.

         42.02 At any time during the twelve (12) month period commencing on the
Commencement Date, prior to leasing all or any portion of the Adjacent Premises
for the first time, Landlord shall on one (1) occasion deliver to Tenant a
written right of first offer notice (the "ROFO Notice") which Tenant shall have
the right to accept or reject in accordance with the following provisions with
respect to the entire Adjacent Premises. Tenant's right to lease the Adjacent
Premises shall be for such terms and conditions as are set forth in the ROFO
Notice as determined by Landlord in Landlord's sole and absolute discretion (the
"ROFO"), and shall only be for the entire Adjacent Premises. Tenant shall have
five (5) business days from receipt of the ROFO Notice to accept or reject the
ROFO. Tenant shall accept or reject the ROFO by delivery of written notice of
acceptance to Landlord before the end of the fifth (5th) business day after
receipt of the ROFO Notice. In the event Tenant provides a written rejection,
does not accept the ROFO Notice in its entirety, makes modifications to the
foregoing terms, or otherwise fails to provide written notice of acceptance to
Landlord within the foregoing period, then Tenant shall be deemed to have
rejected the ROFO and Landlord shall be free to lease all or any portion of the

<PAGE>

Adjacent Premises to any party on any economic terms as desired by Landlord
at any time. Upon acceptance by Tenant of the ROFO as provided herein,
Tenant's obligations to lease the Adjacent Premises in accordance with the
terms and conditions set forth in this Article 42. shall be irrevocable.

         42.03 Tenant acknowledges and agrees that in the event Landlord
fails for any reason to deliver the ROFO Notice as provided in Section 42.02
above, Tenant's sole and exclusive remedy shall be to attempt to recover its
actual out-of-pocket costs incurred in expanding such portion of its
operations which cannot further be operated in the Premises to another
alternative facility as a result of Landlord's failure and that Tenant shall
not be entitled to consequential, special or other damages, including without
limitation, additional excess rent over and above the rent payable under this
Lease for alternative expansion Premises.

         42.04 The Adjacent Premises shall be delivered to Tenant in their
condition at the time of the exercise by Tenant of the ROFO in accordance with
the provisions of Section 42.02 above. In the event Tenant timely accepts the
ROFO as set forth in Section 42. above, Landlord shall prepare and deliver to
Tenant an amendment to this Lease, including the ROFO terms and additional terms
and conditions substantially similar to those set forth in this Lease (the "ROFO
Lease Amendment"). Tenant shall execute the ROFO Lease Amendment within ten (10)
days after receipt from Landlord and Tenant's obligation to pay rent for the
Adjacent Premises shall commence upon delivery of the Adjacent Premises by
Landlord to Tenant.

         42.05 Landlord's obligation to provide Tenant with a ROFO Notice and
Tenant's right to accept the ROFO shall terminate and are expressly conditioned
upon (1) at the time of the delivery of the ROFO Notice and acceptance by Tenant
of the ROFO, and at the time of the execution of the ROFO Lease Amendment,
Tenant shall not be in default under this Lease and no facts or circumstances
exist which, with notice or passage of time, or both, would constitute a default
under this Lease, (2) Tenant has not previously been in default (whether or not
such default has been timely cured) on more than three (3) occasions during the
Lease Term, and (3) Tenant has not Transferred, sublet, or assigned all or any
part of the Premises, or any of Tenant's interest in this Lease, it being
understood that, the ROFO is personal to the original named Tenant under this
Lease Tenant's right to exercise the ROFO shall expire upon the expiration or
earlier termination of this Lease. Upon any termination of Tenant's rights
provided in this Section 42.05, Landlord may lease the Adjacent Premises to any
third party upon any terms and conditions desired by Landlord at any time.

43. GOVERNMENTAL COMPLIANCE.

         43.01 Landlord represents and warrants that, as of the Commencement
Date, the Premises and Landlord's Work comply with the Americans With
Disabilities Act of 1990 (together with regulations related thereto or
interpretations thereof, the "ADA"), and all other laws, regulations and
building codes applicable to the Premises (collectively the "Governmental
Requirements"). Upon receipt from Tenant of notice of any portion of the
Premises or Landlord's Work which does not conform to the foregoing
representation and warranty within the one (1) year period commencing on the
Commencement Date, Landlord agrees to exercise commercially reasonable
efforts to promptly correct the same. Tenant understands and agrees that
Tenant must provide written notice to Landlord within the one (1) year period
specified above and that such representation and warranty shall expire on the
first (1st) anniversary of the Commencement Date. Tenant further agrees that
Tenant shall make, at Tenant's sole cost and expense, all alterations,
additions or changes to the Project and the Premises that may be required
under the ADA and other Governmental Requirements as a result of (1) Tenant's
use of the Premises or the Project, (2) any use of the Premises or Project
which shall be determined to constitute a "public accommodation" under the
ADA, (3) any alterations, improvements, or changes made to the Premises,
including, without limitation, Change Orders, by Tenant or at Tenant's
request, whether or not Landlord's consent is required pursuant to Section
10.01 hereof, and (4) any changes or amendments to the ADA and/or other
Governmental Requirements after the date hereof.

         IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of
the day and year indicated by Landlord's execution date as written below.

         Individuals signing on behalf of a Tenant warrant that they have the
authority to bind their principals. In the event that Tenant is a
corporation, Tenant shall deliver to Landlord, concurrently with the
execution and delivery of this Lease, a certified copy of corporate
resolutions adopted by Tenant authorizing said corporation to enter into and
perform the Lease and authorizing the execution and delivery of the Lease on
behalf of the corporation by the parties executing and delivering this Lease.
THIS LEASE, WHETHER OR NOT EXECUTED BY TENANT, IS SUBJECT TO ACCEPTANCE AND
EXECUTION BY LANDLORD, ACTING ITSELF OR BY ITS AGENT ACTING THROUGH ITS
PRESIDENT, VICE PRESIDENT, OR ITS DIRECTOR OF LEASING AND MARKETING.

<PAGE>

Landlord:  DP OPERATING                Tenant: UNITED STATIONERS SUPPLY CO., AN
PARTNERSHIP, L.P., A DELAWARE          ILLINOIS CORPORATION
LIMITED PARTNERSHIP, BY:  DERMODY
PROPERTIES, A NEVADA CORPORATION,
ITS GENERAL PARTNER

By:                                    By:
     ------------------------------         -----------------------------------
         Michael C. Dermody

Its:     PRESIDENT                     Its:
     ------------------------------         -----------------------------------
                                            (Name, Title)

Date:                                  Date:
     ------------------------------          ----------------------------------
           (Execution date)                  (Execution date)<PAGE>

                                                               EXHIBIT 10.42

                                 LEASE AGREEMENT

THIS LEASE AGREEMENT is made this 15th day of March, 2000, between TROY HILL I
LLC, a Delaware limited liability company "Landlord"), and UNITED STATIONERS
SUPPLY Co., an Illinois corporation ("Tenant").

<TABLE>
<S>                                       <C>
ANNUAL BASE RENT:                         $812,000.00 ($4.50 P.S.F.)

                                          [subject to adjustment pursuant to Section 2(a)]

BROKERS:                                  Manekin, LLC and Grubb & Ellis

BUILDING:                                 7090 Troy Hill Drive, Elkridge, Maryland 21075,

                                          Comprising of 271,600 square feet.

DEVELOPMENT:                              The entire Troy Hill Corporate Center

                                          Development (Parcels A-1 through A-26),

                                          Comprising of 169.65 acres.

INITIAL MONTHLY BASE RENT:                                                       67,666.67

                                          $4.50 per square foot per annum) [subject to

                                          adjustment pursuant to Section 2(a)].

INITIAL ESTIMATED MONTHLY

OPERATING EXPENSE PAYMENTS:               1. Common Area

(estimates only and subject to               Charges:                           $ 3,762.50

adjustments to actual costs and                          ($0.25 per square foot per annum)

expenses according to the                 2. Taxes:                             $ 6,020.00

provisions of this Lease)                                ($0.40 per square foot per annum)

                                          3. Insurance:                           $ 752.50

                                                         ($0.05 per square foot per annum)

INITIAL MONTHLY BASE RENT AND OPERATING EXPENSE PAYMENTS:                       $78,201.67

LEASE COMMENCEMENT DATE:                  April 1, 2000 (estimated). See Section 2(b).

LEASE TERM:                               Beginning on the Lease Commencement Date
                                          and ending on the last day of the fifth
                                          full calendar year after the Rent
                                          Commencement Date.

PREMISES:                                 That portion of the Building, containing
                                          one hundred eighty thousand six hundred
                                          (180,600) rentable square feet, as
                                          determined by Landlord, as shown on
                                          Exhibit A.

PROJECT:                                  Troy Hill Corporate Center - Parcel A-l,
                                          comprising 30.44 acres, and the
                                          improvements constructed thereon or
                                          therein, including the buildings located
                                          at 7040 and 7090 Troy Hill Drive
                                          comprising of 543,200 rentable square
                                          feet.

RENT COMMENCEMENT DATE:                   60 days after Lease Commencement Date.

RIDERS:                                   Rider No. 1 - Renewal Option.

<PAGE>

<S>                                               <C>
TENANT'S PROPORTIONATE SHARE OF BUILDING:         66.49%                       (180,600+271,600)

TENANT'S PROPORTIONATE SHARE OF PROJECT:          33.25%                       (180,600+543,200)

PROJECT'S PROPORTIONATE SHARE OF DEVELOPMENT:     18%               (30.44 acres / 169.65 acres)

TENANT'S REPRESENTATIVE, ADDRESS AND PHONE \
NUMBER:
</TABLE>

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

         1. GRANTING CLAUSE. In consideration of the obligation of Tenant to
pay rent as herein provided and in consideration of the other terms, covenants
and conditions hereof, Landlord leases to Tenant, and Tenant takes from
Landlord, the Premises, to have and to hold for the Lease Term, subject to the
terms, covenants and conditions of this Lease.

         2. ACCEPTANCE OF PREMISES. (a) Landlord shall refinish the Premises as
follows: (i) demolish the approximately 12,000 square feet of existing offices
located in the front of the Premises; (ii) repaint and recarpet all remaining
office areas using building standard materials; (iii) repair all damaged floor
areas; (iv) increase or modify existing lighting to conform to Tenant's rack
layout plan (the "Lighting Work"); and (v) upgrade truck loading area, as more
specifically described on Exhibit B, attached hereto. The foregoing is
hereinafter collectively referred to as "Landlord's Work". Landlord's Work shall
be completed on or before the Lease Commencement Date except for installation of
the dock levelers (as described on Exhibit B), which installation is expected to
be completed 6-8 weeks after the date this Lease is executed and delivered by
Tenant. All of Landlord's Work shall be performed by Landlord or Manekin, LLC at
Landlord's sole cost and expense except for the Lighting Work, the cost of which
shall be paid as follows. Landlord shall contribute up to Fifty Thousand Dollars
($50,000.00) toward the cost of the Lighting Work ("Landlord's Lighting
Contribution"). In the event that the total cost of the Lighting Work is less
than the amount of Landlord's Lighting Contribution, then the difference (the
"Savings") shall be credited to Tenant as a reduction in Base Rent. The amount
of the reduction shall be determined by amortizing the amount of the Savings
over the initial Lease Term (commencing on the Rent Commencement Date), with
interest at the rate of ten percent (10%) per annum. All costs and expenses
incurred by Landlord for work or materials in connection with the Lighting Work
which exceed Landlord's Lighting Contribution shall be deemed additional rent,
and shall be paid by Tenant upon receipt from Landlord of an invoice therefor.

                  (b) The Lease Commencement Date will be April 1, 2000, so long
as: {i) this Lease is executed by Tenant and delivered to Landlord on or before
March 6, 2000; (ii) Landlord is given adequate access to the Premises by March
6, 2000 in order to allow the commencement of Landlord's Work; and (iii) by
March 21, 2000, the trade fixtures, inventory and personality of the existing
tenant shall have been completely removed from the Premises (collectively, the
"Delivery Conditions"). The Lease Commencement Date of April 1, 2000 will be
delayed by one day for each day of delay in satisfying each of the Delivery
Conditions by the required deadline. Landlord and Tenant agree to use their good
faith efforts to cause each of the Delivery Deadlines to occur by the required
date. In the event that Landlord shall be unable, by reason of construction
delays or otherwise, to deliver possession of the Premises on the Lease
Commencement Date, then the date on which Landlord shall deliver possession
shall thereafter be deemed the Lease Commencement Date for all purposes of this
Lease. In the event that the Lease Commencement Date fails to occur by April 10,
2000 due to Landlord's failure to obtain access to the Premises by March 6,
2000, or the existing tenant's failure to fully vacate the Premises by March 21,
2000, then the Free Rent Period, as defined below, shall be extended by two (2)
days for each day after April 10, 2000 until the Lease Commencement Date occurs,
as Tenant's sole remedy for Landlord's failure to deliver possession by April
10, 2000. In the event that the Lease Commencement Date fails to occur by April
30, 2000 for any reason whatsoever, then Landlord or Tenant may terminate this
Lease by giving written notice to the other of such termination by May 5, 2000,
in which event any rental or operating expense payments previously made by
Tenant to Landlord hereunder shall be promptly returned to Tenant and neither
Landlord nor Tenant shall have any further liability hereunder.

                  (c) On the Lease Commencement Date or such later date as
Landlord may request, Tenant shall promptly enter into a supplementary written
agreement (the "Lease Commencement Agreement") in substantially the form
attached hereto as "Exhibit C" or in such other form as Landlord shall
prescribe, thereby specifying, among other matters, the date as of which the
Lease Term shall have begun, the Rent Commencement Date, and the date as of
which the Lease Term shall end.

                  (d) Tenant shall accept the Premises in its condition as of
the Lease Commencement Date, subject to all applicable laws, ordinances,
regulations, covenants and restrictions, subject however to the following
sentence. Landlord hereby represents, warrants and covenants to Tenant

<PAGE>

that, on the Lease Commencement Date, the Premises will comply with (at
Landlord's expense) all applicable laws, regulations and building codes
affecting the Building generally (and not arising out of Tenant's specific
use) 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. Except as set forth in the preceding sentence,
Landlord has made no representation or warranty as to the suitability of the
Premises for the conduct of Tenant's business, and Tenant waives any implied
warranty that the Premises are suitable for Tenant's intended purposes.
Except as provided in this subparagraph (dj or in Paragraph 10, in no event
shall Landlord have any obligation for any defects in the Premises or any
limitation on its use. The taking of possession of the Premises shall be
conclusive that Tenant accepts the Premises and that the Premises were in
good condition at the time possession was taken, except for items that are
Landlord's responsibility under this subparagraph (dj or Paragraph 10 and any
punchlist items agreed to in writing by Landlord and Tenant.

         3. USE. The Premises shall be used only for the purpose of receiving,
storing, shipping and selling (but limited to wholesale sales) products,
materials and merchandise made and/or distributed by Tenant and for such other
lawful purposes as may be incidental thereto; provided, however, with Landlord's
prior written consent, Tenant may also use the Premises for light manufacturing.
Tenant shall not conduct or give notice of any auction, liquidation or going out
of business sale on the Premises. Tenant will use the Premises in a careful,
safe and proper manner and will not commit waste, overload the floor or
structure of the Premises or subject the Premises to use that would damage the
Premises. Tenant shall not permit any objectionable or unpleasant odors, smoke,
dust, gas, noise or vibrations to emanate from the Premises or take any other
action that would constitute a nuisance or would disturb, unreasonably interfere
with or endanger Landlord or any other tenants of the Project. Outside storage,
including without limitation, storage of trucks, trailers and other vehicles, is
prohibited without Landlord's prior written consent; provided, however, that
short-term parking of trucks, trailers and other vehicles in designated parking
areas is permitted, and long-term parking of trucks and trailers at Tenant's
loading docks is permitted. Tenant, at its sole expense, shall use and occupy
the Premises in compliance with all laws, including without limitation, the
Americans With Disabilities Act, orders, judgments, ordinances, regulations,
codes, directives, permits, licenses, covenants and restrictions now or
hereafter applicable to the Premises (collectively, "Legal Requirements"). The
Premises shall not be used as a place of public accommodation under the
Americans With Disabilities Act or similar state statutes or local ordinances or
any regulations promulgated thereunder, all as may be amended from time to time.
Tenant shall, at its expense, make any alterations or modifications, within or
without the Premises, that are required by Legal Requirements related to
Tenant's use or occupation of the Premises. Tenant will not use or permit the
Premises to be used for any purpose or in any manner that would void Tenant's or
Landlord's insurance, increase the insurance risk or cause the disallowance of
any sprinkler credits. If any increase in the cost of any insurance on the
Premises or the Project is caused by Tenant's use or occupation of the Premises,
or because Tenant vacates the Premises, then Tenant shall pay the amount of such
increase to Landlord. Any occupation of the Premises by Tenant prior to the
Lease Commencement Date shall be subject to all obligations of Tenant under this
Lease.

         4. BASE RENT. Commencing on the Rent Commencement Date, it being
understood and agreed that Tenant shall have and enjoy the Premises from the
Lease Commencement Date until the Rent Commencement Date (the "Free Rent
Period"} without the obligation to pay Base Rent, Tenant shall pay Base Rent in
the amount set forth above. Although Tenant has been given the Premises free of
the obligation to pay Base Rent during the Free Rent Period, Tenant shall
otherwise observe, perform and obey all other obligations on its part to
observe, perform and obey during such Free Rent Period. The first month's Base
Rent and the first monthly installment of estimated Operating Expenses (as
hereinafter defined} shall be due and payable on the date hereof, and Tenant
promises to pay to Landlord in advance, without demand, deduction or set-off,
monthly installments of Base Rent on or before the first day of each and every
calendar month for which payment is due succeeding the Rent Commencement Date.
Payments of Base Rent for any fractional calendar month, including the month in
which the Rent Commencement Date shall occur, shall be prorated based upon the
number of days in each such partial month. All payments required to be made by
Tenant 'to Landlord hereunder shall be payable at such address as Landlord may
specify from time to time by written notice delivered in accordance herewith.
The obligation of Tenant to pay Base Rent and other sums to Landlord and the
obligations of Landlord under this Lease are independent obligations. Tenant
shall have no right at any time to abate, reduce, or set-off any rent due
hereunder except as may be expressly provided in this Lease. If Tenant is
delinquent in any monthly installment of Base Rent or of estimated Operating
Expenses for more than 5 days after written notice to Tenant that such amount is
due, Tenant shall pay to Landlord on demand a late charge equal to two and
one-half percent (2.5%) of such delinquent sum; provided, however, that no
notice shall be required to be given to Tenant, and such late charge shall be
automatically due, if Landlord has given such notice to Tenant once in the
preceding twelve months. The provision for such late charge shall be in addition
to all of Landlord's other rights and remedies hereunder or at law and shall not
be construed as a penalty.

<PAGE>

         5. INTENTIONALLY DELETED.

         6. OPERATING EXPENSE PAYMENTS. During each month of the Lease Term,
commencing on the Rent Commencement Date, on the same date THAT Base Rent is
due, Tenant shall pay Landlord an amount equal to 1/12 of the annual cost, as
estimated by Landlord from time to time, of Tenant's Proportionate Share of
Operating Expenses for the Building (with respect to utilities and other
Building specific expenses), the Project (with respect to Taxes, insurance,
exterior site lighting, and other common area maintenance and expenses shared by
the buildings within the Project), and the Development (with respect to
stormwater management expenses, Development signage, and other expenses shared
by all buildings within the Development), as the case may be. Payments thereof
for any fractional calendar month shall be prorated. Set forth on Exhibit D
attached hereto is an estimated budget of the Operating Expenses for calendar
year 2000. Landlord hereby agrees to use its good faith efforts to maintain the
cost of those Operating Expenses within Landlord's reasonable control. The term
"Operating Expenses" means all costs and expenses incurred by Landlord with
respect to the ownership, maintenance, and operation of the Project including,
but not limited to costs of: Taxes (hereinafter defined) and fees payable to tax
consultants and attorneys for consultation and contesting taxes (provided,
however, that the amount of fees paid to tax consultants and attorneys and
included in Operating Expenses shall not exceed the amount of savings in Taxes
resulting from such contest); insurance; utilities; maintenance, common area
maintenance, repair and replacement of all portions of the Building, including
without limitation, paving and parking areas, roads, roofs, alleys, and
driveways, mowing, landscaping, exterior painting, utility lines, lighting,
electrical systems and other mechanical and Building systems; the cost of
maintaining a limited parts and labor service contract on all heating,
ventilation and air conditioning systems; amounts paid to contractors and
subcontractors for work or services performed in connection with any of the
foregoing; charges or assessments of any association to which the Building is
subject; the Project's pro rata share of certain expenses incurred for the
Development (including stormwater management expenses, Development signage, and
certain landscaping for the Development); property management fees payable to a
property manager, including any affiliate of Landlord, or if there is no
property manager, an administration fee of 15 percent of Operating Expenses
payable to Landlord; security services, if any; trash collection, sweeping and
removal; and additions or alterations made by Landlord to the Building or in
order to comply with Legal Requirements (other than those the Project expressly
required herein to be made by Tenant) or that are appropriate to the continued
operation of the Project or the Building as a bulk warehouse facility in the
market area, provided that the cost of additions or alterations that are
required to be capitalized for federal income tax purposes shall be amortized on
a straight line basis over a period equal to the lesser of the useful life
thereof for federal income tax purposes or 10 years. Operating Expenses shall
include the costs and expenses for capital repairs and capital replacements
required to be made by Landlord under Paragraph 10 of this Lease provided such
costs are amortized or depreciated in accordance with consistently applied
accounting principles.

         Operating Expenses shall not include debt service under mortgages or
ground rent under ground leases, costs of restoration to the extent of net
insurance proceeds received by Landlord with respect thereto, leasing
commissions, or the costs of renovating space for tenants, including without
limitation, the Tenant.

         If Tenant's total payments of Operating Expenses for any year are
less than Tenant's applicable Proportionate Share of actual Operating
Expenses for such year, then Tenant shall pay the difference to Landlord
within 30 days after demand (which demand shall include an itemization of the
costs included within the Operating Expenses for the applicable year), and if
more, then Landlord shall retain such excess and credit it against Tenant's
next monthly installment of Base Rent. Unless Tenant gives Landlord written
notice of its exception to any such demand within thirty (30) days after
delivery thereof, the same shall be conclusive and binding on Tenant;
provided, however, that in the event that Tenant shall give Landlord written
notice of any exception within such thirty (30) day period, Tenant shall
nevertheless be obligated to pay the additional rent. For purposes of
calculating Tenant's Proportionate Share of Operating Expenses, a year shall
mean a calendar year (except as to Taxes, which shall mean July 1 - June 30)
except the first year, which shall begin on the Lease Commencement Date, and
the last year, which shall end on the expiration of this Lease. With respect
to Operating Expenses which are allocated to the Building, the Project, or
the Development, as provided in the first paragraph of this Paragraph 6,
Tenant's Proportionate Share shall be the applicable percentages set forth on
page 2 of this Lease as reasonably adjusted by Landlord from time to time to
include changes in the overall size of the Building, the Project or the
Development, as the case may be. With respect to Operating Expenses which
Landlord allocates only to the Building, Landlord may equitably increase
Tenant's Proportionate Share for any item of expense or cost reimbursable by
Tenant that relates to a repair, replacement, or service that benefits only
the Premises or only a portion of the Project or Building that includes the
Premises or that varies with occupancy or use. The estimated Operating
Expenses for the Premises set forth on the first page of this Lease are only
estimates, and Landlord makes no guaranty or warranty that such estimates
will be accurate.

         Upon reasonable notice, Landlord shall make available for Tenant's
inspection at Landlord's

<PAGE>

or Landlord's property manager's office, during normal business hours, at
Tenant's sole cost and expense, Landlord's records and invoices relating to
the Operating Expenses for the immediately preceding period; PROVIDED,
HOWEVER, that unless Tenant shall have given Landlord written notice of its
exception to any such statement for additional rent within thirty (30) days
after delivery thereof, the same shall be conclusive and binding on Tenant;
PROVIDED FURTHER that in the event that Tenant shall give to Landlord written
notice of its exception to such statement within such thirty (30) day period,
Tenant shall nevertheless be obligated to pay the additional rent pursuant to
and within the time period required by the provisions of this Section, but
shall have the right, following such payment, to contest the amount set forth
in such statement in a court of competent jurisdiction without being in
breach or default of this Lease.

         7. UTILITIES. Except to the extent commonly metered and included
within Operating Expenses, Tenant shall pay for all water, gas, electricity,
heat, light, power, telephone, sewer, sprinkler services, refuse and trash
collection, and other utilities and services used on the Premises, and shall
pay all maintenance charges for utilities and any storm sewer charges or
other similar charges for utilities imposed by any governmental entity or
utility provider, together with any taxes, penalties, surcharges or the like
pertaining to Tenant's use of the Premises. Landlord may cause, at Tenant's
expense, any utilities to be separately metered or charged directly to Tenant
by the provider. No interruption or failure of utilities shall result in the
termination of this Lease or the abatement of rent. Tenant agrees to limit
use of water and sewer for normal restroom use.

         8. TAXES. Landlord shall pay all Taxes that accrue against the
Project during the Lease Term, which shall be included as part of the
Operating Expenses charged to Tenant pursuant to Paragraph 6. "Taxes" shall
mean any present or future federal, state, municipal, local and/or any other
taxes, assessments, levies, benefit charges, and/or other governmental and/or
private impositions (including business park charges and dues), levied,
assessed and/or agreed to be imposed upon the Real property of which the
Premises are a part or any part or parts of said property, or upon the rent
due and payable hereunder, whether or not now customary or within the
contemplation of the parties hereto and regardless of whether the same shall
be extraordinary or ordinary, general or special, foreseen or unforeseen, or
similar or dissimilar to any of the foregoing but shall not include any
inheritance, estate, succession, income, profits or franchise tax, provided,
however, if at any time during the Lease Term or any extension thereof the
method of taxation prevailing at the commencement of the Lease Term shall be
altered or eliminated so as to cause the whole or any part of the items
defined as Taxes above to be replaced by a levy, assessment or imposition,
wholly or partly as a capital levy, or otherwise, on the rents or income
(provided the tax on such income is not a tax levied on taxable income
generally) received from the buildings, wholly or partly in place of an
imposition on or as a substitute for, or an increase of, taxes in the nature
of real estate taxes issued against the real property, then the charge to
Landlord resulting from such altered or replacement method of taxation shall
be deemed to be within the definition of "Taxes". All reasonable expenses
incurred by Landlord (including attorneys' fees and costs) in contesting any
increase in Taxes or any increase in the assessment of the Real Property
shall be included as an item of Taxes. If any such tax or excise is levied or
assessed directly against Tenant, then Tenant shall be responsible for and
shall pay the same at such times and in such manner as the taxing authority
shall require. Tenant shall be liable for all taxes levied or assessed
against any personal property of fixtures placed in the Premises, whether
levied or assessed against Landlord or Tenant.

         Tenant acknowledges that Landlord must pay the Taxes for an entire
tax year (i.e., July 1 - June 30) in advance. Therefore, within thirty (30)
days after the Commencement Date, Tenant shall pay to Landlord a sum equal to
Tenant's Proportionate Share of the pre-paid Taxes paid by Landlord for the
tax year in which the Commencement Date occurs (the "Commencement Tax Year"),
pro-rated from the Commencement Date to the end of the Commencement Tax Year.
During the tax year immediately following the Commencement Tax Year (the
"Second Tax Year"), Tenant shall reimburse Landlord, upon receipt of an
invoice therefor, for Tenant's Proportionate Share of any pre-paid Taxes paid
by Landlord with respect to the Second Tax Year, after subtracting therefrom
the amount of any estimated payments made by Tenant pursuant to this Section
8 with respect to such Second Tax Year. Thereafter, Tenant's estimated
monthly amount of Tenant's Proportionate Share of Taxes as set forth above
shall be adjusted to reflect its Proportionate Share of such actual Taxes,
which monthly amounts shall be applied to the tax years immediately following
the Second Tax Year and succeeding tax years, subject to further adjustment.
Following termination of the Lease Term by passage of time or for any reason
other than Tenant's default of this Lease (the "Termination Date"), Tenant
shall be reimbursed by Landlord to the extent of any Proportionate Share of
Taxes which it has pre-paid as of such Termination Date for the period beyond
such Termination Date.

         9. INSURANCE. Landlord shall maintain all risk property insurance
covering the full replacement cost of the Building, less a commercially
reasonable deductible. Landlord may, but is not obligated to, maintain such
other insurance and additional coverage as it may deem necessary, including,
but not limited to, commercial liability insurance and rent loss insurance.
All such insurance shall be included as part of the Operating Expenses
charged to Tenant pursuant to Paragraph 6. The Project or Building may be
included in a blanket policy (in which case the cost of

<PAGE>

such insurance allocable to the Project or Building will be determined by
Landlord based upon the insurer's cost calculations). Tenant shall also
reimburse Landlord for any increased premiums or additional insurance which
Landlord reasonably deems necessary as a result of Tenant's use of the
Premises.

         Tenant, at its expense, shall maintain during the Lease Term: (i)
all risk property insurance covering the full replacement cost of all
property and improvements installed or placed in the Premises by Tenant at
Tenant's expense; (ii) worker's compensation insurance with no less than the
minimum limits required by law; (iii) employer's liability insurance with
such limits as required by law; and, (iv) commercial liability insurance with
a minimum limit of $1,000,000 per occurrence and a minimum umbrella of
$1,000,000, for a total minimum combined general liability and umbrella limit
of $2,000,000 (together with such additional umbrella coverage as Landlord
may reasonably require) for property damage, personal injuries or deaths of
persons occurring in or about the Premises. Landlord may from time to time
require reasonable increases in any such limits. The commercial liability
policies shall name Landlord and Manekin, LLC as additional insureds, insure
on an occurrence and not a claims-made basis, be issued by insurance
companies which are reasonably acceptable to Landlord, not be cancelable
unless thirty (30) days prior written notice shall be given to Landlord,
contain a hostile fire endorsement and a contractual liability endorsement
and provide primary coverage to Landlord (any policy issued to Landlord
providing duplicate or similar coverage shall be deemed excess over Tenant's
policies). Such policies or certificates thereof shall be delivered to
Landlord by Tenant upon commencement of the Lease Term and upon each renewal
of said insurance.

         The all risk property insurance obtained by Landlord and Tenant
shall include a waiver of subrogation by the insurers and all rights based
upon an assignment from its insured, against Landlord and Tenant, their
officers, directors, employees, managers, agents, invitees and contractors,
in connection with any loss or damage thereby insured against. Neither party
nor its officers, directors, employees, managers, agents, invitees or
contractors shall be liable to the other for loss or damage caused by a risk
which is covered by all risk property insurance actually in place, and each
party waives any claims against the other party and its officers, directors,
employees, managers, agents, invitees and contractors for such loss or
damage. The failure of a party to insure its property shall not void this
waiver. Landlord and its agents, employees and contractors shall not be
liable for, and Tenant hereby waives all claims against such parties for,
business interruption and losses occasioned thereby sustained by Tenant or
any person claiming through Tenant resulting from any accident or occurrence
in or upon the Premises or the Project from any cause whatsoever, including
without limitation, damage caused in whole or in part, directly or
indirectly, by the negligence of Landlord or its agents, employees or
contractors.

         10. LANDLORD'S REPAIRS. Landlord shall maintain, at its expense, the
structural soundness of the roof, foundation, and exterior walls of the
Building in good repair, reasonable wear and tear and uninsured losses and
damages caused by Tenant, its agents and contractors excluded. The term
"walls" as used in this Paragraph 10 shall not include windows, glass or
plate glass, doors or overhead doors, special store fronts, dock bumpers,
dock plates or levelers, or office entries. Tenant shall promptly give
Landlord written notice of any repair required by Landlord pursuant to this
Paragraph 10, after which Landlord shall have a reasonable opportunity to
repair.

         11. TENANT'S REPAIRS. Landlord, at Tenant's expense as provided in
Paragraph 6, shall maintain in good repair and condition the parking areas
and other common areas of the Building, including but not limited to, roofs,
driveways, alleys, landscape and grounds surrounding the Premises. Subject to
Landlord's obligation in Paragraph 10 and subject to Paragraphs 9 and 15,
Tenant, at its expense, shall repair, replace and maintain in good condition
all portions of the Premises and all areas, improvements and systems
exclusively serving the Premises including, without limitation, fire
sprinklers and fire protection systems, entries, doors, ceilings, windows,
interior walls, the interior side of demising walls and the heating,
ventilation and air conditioning system (to the extent not covered under the
maintenance contract provided by Landlord at Tenant's expense pursuant to
Paragraph 6) (it being understood and agreed, however, that the repair and/or
replacement of the roof is the obligation of Landlord, subject to any
reimbursement by Tenant as set forth in Section 6 above). Any repair and
replacements of those portion of the Premises for which Tenant is responsible
include capital expenditures and repairs whose benefit may extend beyond the
Term. If Tenant fails to perform any repair or replacement for which it is
responsible, Landlord may, but shall not have the obligation to, perform such
work and shall be reimbursed by Tenant, as additional rent hereunder, within
10 days after demand therefor. Subject to Paragraphs 9 and 15, Tenant shall
bear the full cost of any repair or replacement to any part of the Building
or Project that results from damage caused by Tenant, its agents,
contractors, or invitees, and any repair that benefits only the Premises.

         12. TENANT-MADE ALTERATIONS AND TRADE FIXTURES. Any alterations,
additions, or improvements to the Premises made by or on behalf of Tenant
("Tenant-Made Alterations"), shall be subject to Landlord's prior written
consent, which consent shall not be unreasonably withheld. Tenant shall
cause, at its expense, all Tenant-Made Alterations to comply with insurance
requirements and with

<PAGE>

Legal Requirements as a result of any Tenant-Made Alterations. All
Tenant-Made Alterations shall be constructed in a good and workmanlike manner
by contractors reasonably acceptable to Landlord and only grades of materials
acceptable to Landlord shall be used. All plans and specifications for any
Tenant-Made Alterations shall be submitted to Landlord for its prior written
approval, which consent shall not be unreasonably withheld. Landlord may
monitor construction of the Tenant-Made Alterations. Tenant shall reimburse
Landlord for its costs in reviewing plans and specifications and in
monitoring construction. Landlord's right to review plans and specifications
and to monitor construction shall be solely for its own benefit, and Landlord
shall have no duty to see that such plans and specifications or construction
comply with applicable laws, codes, rules and regulations. Tenant shall
provide Landlord with the identities and mailing addresses of all persons
performing work or supplying materials, prior to beginning such construction,
and Landlord may post on and about the Premises notices of non-responsibility
pursuant to applicable law. Tenant shall furnish security or make other
arrangements satisfactory to Landlord to assure payment for the completion of
all work free and clear of liens and shall provide certificates of insurance
for worker's compensation and other coverage in amounts from an insurance
company satisfactory to Landlord protecting Landlord against liability for
personal injury or property damage during construction. Upon completion of
any Tenant-Made Alterations, Tenant shall deliver to Landlord sworn
statements setting forth the names of all contractors and subcontractors who
did work on the Tenant-Made Alterations and final lien waivers from all such
contractors and subcontractors. Upon surrender of the Premises, all
Tenant-Made Alterations and any leasehold improvements constructed by
Landlord or Tenant shall remain on the Premises as Landlord's property,
except to the extent Landlord requires removal at Tenant's expense of any
such items or Landlord and Tenant have otherwise agreed in writing in
connection with Landlord's consent to any Tenant-Made Alterations. Tenant
shall repair any damage caused by such removal.

         Tenant, at its own cost and expense and without Landlord's prior
approval, may erect such shelves, bins, and normal office equipment
(collectively "Trade Fixtures") in the ordinary course of its business
provided that such items do not alter the basic character of the Premises, do
not overload or damage the Premises or any component thereof, and may be
removed without injury to the Premises. Tenant may also make non-structural
changes to the Premises which do not substantially change the character of
the Premises or affect the mechanical, electrical, or plumbing systems in the
Premises, and which in each instance cost less than $10,000.00, without the
prior consent of Landlord, provided Tenant has notified Landlord of such
changes and has provided Landlord a reasonably complete set of plans and
specifications at least thirty (30) days prior to commencing work. The
construction, erection, installation thereof must also comply with all Legal
Requirements and with Landlord's Requirements set forth above. Tenant shall
remove its Trade Fixtures and shall repair any damage caused by such removal.

         13. SIGNS. Tenant shall not make any changes to the exterior of the
Premises, install any exterior lights, decorations, balloons, flags,
pennants, banners, or painting, or 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 Premises, without Landlord's prior
written consent. Upon surrender or vacation of the Premises, Tenant shall
have removed all signs and repair, paint, and/or replace the building fascia
surface to which its signs are attached. Tenant shall obtain all applicable
governmental permits and approvals for sign and exterior treatments. All
signs, decorations, advertising media, blinds, draperies and other window
treatment or bars or other security installations visible from outside the
Premises shall be subject to Landlord's approval and conform in all respects
to Landlord's requirements.

         14. PARKING. Tenant shall be entitled to park in common with other
tenants of the Project in those areas designed for non-reserved parking.
Landlord may allocate parking spaces among Tenant and other tenants in the
Project if Landlord determines that such parking facilities are becoming
crowded. Landlord shall not be responsible for enforcing Tenant's parking
rights against any third parties. Tenant further agrees that it will not use,
or permit its employees or invitees to use, more than 180 parking spaces at
any given time in order to assure adequate parking for all tenants of the
Project.

         15. RESTORATION. If at any time during the Lease Term the Premises
are damaged by a fire or other casualty, Landlord shall notify Tenant within
sixty (60) days after such damage as to the amount of time Landlord
reasonably estimates it will take to restore the Premises. If the restoration
time is estimated to exceed six (6) months, either Landlord or Tenant may
elect to terminate this Lease upon notice to the other party given no later
than thirty (30) days after Landlord's notice. If neither party elects to
terminate this Lease or if Landlord estimates that restoration will take six
(6) months or less, then, subject to receipt of sufficient insurance
proceeds, Landlord shall promptly restore the Premises excluding the
improvements installed by Tenant or by Landlord and paid by Tenant, subject
to delays arising from the collection of insurance proceeds or from Force
Majeure events. Tenant at Tenant's expense shall promptly perform, subject to
delays arising from the collection of insurance proceeds, or from Force
Majeure events, all repairs or restoration not required to be done by
Landlord and shall promptly re-enter the Premises and commence doing business
in accordance with this Lease. Notwithstanding the foregoing,

<PAGE>

either party may terminate this Lease if the Premises are damaged during the
last year of the Lease Term and Landlord reasonably estimates that it will
take more than one month to repair such damage. Tenant shall pay to Landlord
with respect to any damage to the Premises the amount of the commercially
reasonably deductible under Landlord's insurance policy within ten (10) days
after the presentment of Landlord's invoice. If the damage involves the
premises of other tenants, Tenant shall pay the portion of the deductible
that the cost of the restoration of the Premises bears to the total cost of
restoration, as determined by Landlord. Base Rent and Operating Expenses
shall be abated for the period of repair and restoration in the proportion
which the area of the Premises, if any, which is not usable by Tenant bears
to the total area of the Premises. Such abatement shall be the sole remedy of
Tenant, and except as provided herein, Tenant waives any right to terminate
the Lease by reason of damage or casualty loss.

         16. CONDEMNATION. If any part of the Premises or the Project should
be 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 (a "Taking" or "Taken"), and the Taking materially
interferes with Tenant's use of the entire Premises or in Landlord's judgment
would materially interfere with or impair its ownership or operation of the
Building or the Project, then upon written notice by Landlord this Lease
shall terminate and Base Rent shall be apportioned as of said date. If part
of the Premises shall be Taken, and this Lease is not terminated as provided
above, the Base Rent payable hereunder during the unexpired Lease Term shall
be reduced to such extent as may be fair and reasonable under the
circumstances. In the event of any such Taking, Landlord shall be entitled to
receive the entire price or award from any such Taking without any payment to
tenant, and Tenant hereby assigns to Landlord Tenant's interest, if any, in
such award. Tenant shall have the right, to the extent that same shall not
diminish Landlord's award, to make a separate claim against the condemning
authority (but not Landlord) for such compensation as may be separately
awarded or recoverable by Tenant for moving expenses, and damage to Tenant's
Trade Fixtures, if a separate award for such items is made to Tenant.

         17. ASSIGNMENT AND SUBLETTINQ. Without Landlord's prior written
consent, to be determined in its sole discretion, Tenant shall not assign
this Lease or sublease the Premises or any part thereof or mortgage, pledge,
or hypothecate its leasehold interest or grant any concession or license
within the Premises and any attempt to do any of the foregoing shall be void
and of no effect. For purposes of this paragraph, a transfer of the ownership
interests controlling Tenant shall be deemed an assignment of this Lease
unless such ownership interests are publicly traded. Notwithstanding the
above, Tenant may assign or sublet the Premises or any part thereof, to any
entity controlling Tenant, controlled by Tenant or under common control with
Tenant (a "Tenant Affiliate"), without the prior written consent of Landlord,
provided Tenant remains primarily liable for all of its obligations
hereunder. Tenant shall reimburse Landlord for all of Landlord's reasonable
out-of-pocket expenses in connection with any assignment or sublease. Upon
Landlord's receipt of Tenant's written notice of a desire to assign or sublet
the Premises, or any part thereof (other than to a Tenant Affiliate),
Landlord may, by giving written notice to Tenant within fifteen (15) business
days after receipt of Tenant's notice, terminate this Lease with respect to
the space described in Tenant's notice, as of the date specified in Tenant's
notice for the commencement of the proposed assignment or sublease.

         Notwithstanding any assignment or subletting, Tenant shall at all
times remain fully responsible and liable for the payment of all rent and for
compliance with all of Tenant's other obligations under this Lease
(regardless of whether Landlord's approval has been obtained for any such
assignments or sublettings). In the event that the rent due and payable by a
sublessee or assignee (or a combination of the rent payable under such
sublease or assignment plus any bonus or other consideration therefor or
incident thereto) exceeds the rent payable under this Lease, then Tenant
shall be bound and obligated to pay Landlord fifty percent (50%) of all such
excess rent and other excess consideration within ten (10) business days
following receipt thereof by Tenant.

         If this Lease be assigned or if the Premises be subleased (whether
in whole or in part) or in the event of the mortgage, pledge or hypothecation
of Tenant's leasehold interest or grant of any concession or license within
the Premises or if the Premises be occupied in whole or in part by anyone
other than Tenant, then upon a default by Tenant hereunder, Landlord may
collect any rent due hereunder from the assignee, sublessee, mortgagee,
pledgee, party to whom the leasehold interest was hypothecated, concessionee
or licensee or other occupant and, except to the extent set forth in the
preceding paragraph, apply the amount collected to the rent due hereunder;
and all such rent collected by Tenant shall be held in trust for Landlord and
immediately forwarded to Landlord. No such transaction or collection of any
rent due hereunder or application thereof by Landlord, however, shall be
deemed a waiver of these provisions or a release of Tenant from the further
performance by Tenant of its covenants, duties, or obligations hereunder.

         18. INDEMNIFICATION. Except for the negligence of Landlord, its
agents, employees or contractors, and to the extent permitted by law, Tenant
agrees to indemnify, defend and hold harmless Landlord, and Landlord's
managers, agents, employees and contractors, from and against any and all
losses, liabilities, damages, costs and expenses (including attorneys' fees)
resulting from

<PAGE>

claims by third parties for injuries to any person and damage to or theft or
misappropriation or loss of property occurring in or about the Project and
arising from the use and occupancy of the Premises or from any activity,
work, or thing done, permitted or suffered by Tenant in or about the Premises
or due to any other act or omission of Tenant, its subtenants, assignees,
invitees, employees, contractors and agents. The furnishing of insurance
required hereunder shall not be deemed to limit Tenant's obligations under
this Paragraph 18.

         19. INSPECTION AND ACCESS. Landlord and its agents, representatives,
and contractors may enter the Premises at any reasonable time to inspect the
Premises and to make such repairs as may be required or permitted pursuant to
this Lease and for any other business purpose. Except in the event of an
emergency, any such entry shall be during regular business hours and with at
least 24 hours' prior notice to Tenant (which notice may be verbal). Landlord
and Landlord's representatives may enter the Premises during business hours
for the purpose of showing the Premises to prospective purchasers and, during
the last year of the Lease Term, to prospective tenants. Landlord may erect a
suitable sign on the Premises stating the Premises are available to let or
that the Project is available for sale. Landlord may grant easements, make
public dedications, designate common areas and create restrictions on or
about the Premises, provided that no such easement, dedication, designation
or restriction materially interferes with Tenant's use or occupancy of the
Premises. At Landlord's request, Tenant shall execute such instruments as may
be necessary for such easements, dedications or restrictions.

         20. QUIET ENJOYMENT. If, at all times during the Lease Term, Tenant
shall perform all of the covenants and agreements herein required to be
performed by Tenant, Tenant, subject to the terms of this Lease and all
matters of record, shall have peaceful and quiet enjoyment of the Premises
against any person claiming by, through or under Landlord.

         21. SURRENDER. Upon termination of the Lease Term or earlier
termination of Tenant's right of possession, Tenant shall surrender the
Premises to Landlord in the same condition as received, broom clean, ordinary
wear and tear and casualty loss and condemnation covered by Paragraphs 15 and
16 excepted. Any Trade Fixtures, Tenant-Made Alterations and property not so
removed by Tenant as permitted or required herein shall be deemed abandoned
and may be stored, removed, and disposed of by Landlord at Tenant's expense,
and Tenant waives all claims against Landlord for any damages resulting from
Landlord's retention and disposition of such property. All obligations of
Tenant hereunder not fully performed as of the termination of the Lease Term
shall survive the termination of the Lease Term, including without
limitation, indemnity obligations, payment obligations with respect to
Operating Expenses and obligations concerning the condition and repair of the
Premises.

         22. HOLDING_OVER. If Tenant retains possession of the Premises after
the termination of the Lease Term, unless otherwise agreed in writing, such
possession shall be subject to immediate termination by Landlord at any time,
and all of the other terms and provisions of this Lease (excluding any
expansion or renewal option or other similar right or option) shall be
applicable during such holdover period, except that Tenant shall pay Landlord
from time to time, upon demand, as Base Rent for the holdover period, an
amount equal to one and one-half times the Base Rent in effect on the
termination date, computed on a monthly basis for each month or part thereof
during such holding over. All other payments shall continue under the terms
of this Lease. In addition, Tenant shall be liable for all damages incurred
by Landlord as a result of such holding over. No holding over by Tenant,
whether with or without consent of Landlord, shall operate to extend this
Lease except as otherwise expressly provided, and this Paragraph 22 shall not
be construed as consent for Tenant to retain possession of the Premises.

         23. EVENTS OF DEFAULT. Each of the following events shall be an
event of default ("Event of Default") by Tenant under this Lease:

                  (i) Tenant shall fail to pay any installment of Base Rent
or any other payment required herein when due, and such failure shall
continue for a period of ten (10) days from the date Landlord has given
Tenant notice that such payment was due; provided, however, that no notice
shall be required to be given to Tenant, and Tenant shall be in immediate
default, if Landlord has given such notice to Tenant once in the preceding
twelve months.

                  (ii) Tenant shall (A) make a general assignment for the
benefit of creditors; (B) commence any case, proceeding or other action
seeking to have an order for relief entered on its behalf as a debtor or to
adjudicate it a bankrupt or insolvent, or seeking reorganization,
arrangement, adjustment, liquidation, dissolution or composition of it or its
debts or seeking appointment of a receiver, trustee, custodian or other
similar official for it or for all or of any substantial part of its property
(collectively a "proceeding for relief"); (C) become the subject of any
proceeding for relief which is not dismissed within 60 days of its filing or
entry; (D) die or suffer a legal disability (if Tenant, guarantor, or surety
is an individual) or be dissolved or otherwise fail to maintain its legal
existence (if Tenant, guarantor or surety is a corporation, partnership or
other entity).

<PAGE>

                  (iii) Any insurance required to be maintained by Tenant
pursuant to this Lease shall be canceled or terminated or shall expire or
shall be reduced or materially changed, except, in each case, as permitted in
this Lease.

                  (iv) Tenant shall attempt or there shall occur any
assignment, subleasing or other transfer of Tenant's interest in or with
respect to this Lease except as otherwise permitted in this Lease.

                  (v) Tenant shall fail to discharge any lien placed upon the
Premises in violation of this Lease within thirty (30) days after Tenant
becomes aware that any such lien or encumbrance has been filed against the
Premises.

                  (vi) Tenant shall fail to comply with any provision of this
Lease other than those specifically referred to in this Paragraph 23, and
except as otherwise expressly provided herein, such default shall continue
for more than thirty (30) days after Landlord shall have given Tenant written
notice of such default [unless such compliance will, due to the nature of the
obligation, require a period of time in excess of thirty (30) days, then after
such period as is reasonably necessary, so long as Tenant commences the cure
within the original thirty (30) day period and diligently prosecutes the same
thereafter].

         24. LANDLORD'S REMEDIES. Upon each occurrence of an Event of Default
and so long as such Event of Default shall be continuing, Landlord may at any
time thereafter at its election, terminate this Lease or Tenant's right of
possession, (but Tenant shall remain liable as hereinafter provided) and/or
pursue any other remedies at law or in equity. Upon the termination of this
Lease or termination of Tenant's right of possession, it shall be lawful for
Landlord, without formal demand or notice of any kind, to re-enter the
Premises by summary dispossession proceedings or any other action or
proceeding authorized by law and to remove Tenant and all persons and
property therefrom. If Landlord re-enters the Premises, Landlord shall have
the right to keep in place and use, or remove and store, all of the
furniture, fixtures and equipment at the Premises.

         If Landlord terminates this Lease, Landlord may recover from Tenant
the sum of: all Base Rent and all other amounts accrued hereunder to the date
of such termination; the cost of reletting the whole or any part of the
Premises, including without limitation brokerage fees and/or leasing
commissions incurred by Landlord, and costs of removing and storing Tenant's
or any other occupant's property, repairing, altering, remodeling, or
otherwise putting the Premises into condition acceptable to a new tenant or
tenants, and all expenses incurred by Landlord in pursuing its remedies,
including reasonable attorneys' fees and court costs; and the then present
value of the Base Rent and other amounts payable by Tenant under this Lease
as would otherwise have been required to be paid by Tenant to Landlord during
the period following the termination of this Lease measured from the date of
such termination to the expiration date stated in this Lease. Such present
value shall be calculated at a discount rate equal to the 90-day U.S.
Treasury bill rate at the date of such termination.

         If Landlord terminates Tenant's right of possession (but not this
Lease), Landlord may, but shall be under no obligation to, relet the Premises
for the account of Tenant for such rent and upon such terms as shall be
satisfactory to Landlord without thereby releasing Tenant from any liability
hereunder and without demand or notice of any kind to Tenant. For the purpose
of such reletting Landlord is authorized to make any repairs, changes,
alterations, or additions in or to the Premises as Landlord deems reasonably
necessary or desirable. If the Premises are not relet, then Tenant shall pay
to Landlord as damages a sum equal to the amount of the rental reserved in
this Lease for such period or periods, plus the cost of recovering possession
of the Premises (including attorneys' fees and costs of suit), the unpaid
Base Rent and other amounts accrued hereunder at the time of repossession,
and the costs incurred in any attempt by Landlord to relet the Premises. If
the Premises are relet and a sufficient sum shall not be realized from such
reletting (after first deducting therefrom, for retention by Landlord, the
unpaid Base Rent and other amounts accrued hereunder at the time of
reletting, the cost of recovering possession (including attorneys' fees and
costs of suit), all of the costs and expense of repairs, changes,
alterations, and additions, the expense of such reletting (including without
limitation brokerage fees and leasing commissions) and the cost of collection
of the rent accruing therefrom) to satisfy all rental provided for in this
Lease to be paid, then Tenant shall immediately satisfy and Pay any such
deficiency. Any such payments due Landlord shall be made upon demand therefor
from time to time and Tenant agrees that Landlord may file suit to recover
any sums falling due from time to time. Notwithstanding any such reletting
without termination, Landlord may at any time thereafter elect in writing to
terminate this Lease for such previous breach.

         Exercise by Landlord of any one or more remedies hereunder granted
or otherwise available shall not be deemed to be an acceptance of surrender
of the Premises and/or a termination of this Lease by Landlord, whether by
agreement or by operation of law, it being understood that such surrender
and/or termination can be effected only by the written agreement of Landlord
and Tenant. Any law, usage, or custom to the contrary notwithstanding,
Landlord shall have the right at all

<PAGE>

times to enforce the provisions of this Lease in strict accordance with the
terms hereof; and the failure of Landlord at any time to enforce its rights
under this Lease strictly in accordance with the same shall not be construed
as having created a custom in any way or manner contrary to the specific
terms, provisions, and covenants of this Lease or as having modified the
same. Tenant and Landlord further agree that forbearance or waiver by
Landlord to enforce its rights pursuant to this Lease or at law or in equity,
shall not be a waiver of Landlord's right to enforce one or more of its
rights in connection with any subsequent default. A receipt by Landlord of
any rental due under this Lease or other payment with knowledge of the breach
of any covenant hereof shall not be deemed a waiver of such breach, and no
waiver by Landlord of any provision of this Lease shall be deemed to have
been made unless expressed in writing and signed by Landlord. To the greatest
extent permitted by law, Tenant waives the service of notice of Landlord's
intention to re-enter as provided for in any statute, or to institute legal
proceedings to that end, and also waives all right of redemption in case
Tenant shall be dispossessed by a judgment or by warrant of any court or
judge. The terms "enter" "re-enter", "entry" or "re-entry", as used in this
Lease, are not restricted to their technical legal meanings. Any reletting of
the Premises shall be on such terms and conditions as Landlord in its sole
discretion may determine (including without limitation a term different than
the remaining Lease Term, rental concessions, alterations and repair of the
Premises, lease of less than the entire Premises to any tenant and leasing
any or all other portions of the Project before reletting the Premises).
Landlord shall not be liable, nor shall Tenant's obligations hereunder be
diminished because of, Landlord's failure to relet the Premises or collect
rent due in respect of such reletting.

         25. TENANT'S REMEDIES. Landlord shall not be in default hereunder
unless Landlord fails to perform any of its obligations hereunder within
thirty (30) days after written notice from Tenant specifying such failure
[unless such performance will, due to the nature of the obligation, require
a period of time in excess of thirty (30) days, then after such period of
time as is reasonably necessary, so long as Landlord commences the cure
within the original thirty (30) day period and diligently prosecutes the same
thereafter]. All obligations of Landlord hereunder shall be construed as
covenants, not conditions; and, except as may be otherwise expressly provided
in this Lease, Tenant may not terminate this Lease for breach of Landlord's
obligations hereunder. Subject to the terms and conditions of Section 39, all
obligations of Landlord under this Lease shall be binding upon Landlord only
during the period of its ownership of the Premises and not thereafter. The
term "Landlord" in this Lease shall mean only the owner, for the time being
of the Premises, and in the event of the transfer by such owner of its
interest in the Premises, such owner shall thereupon be released and
discharged from all obligations of Landlord thereafter accruing, but such
obligations shall be binding during the Lease Term upon each new owner for
the duration of such owner's ownership.

         26. WAIVER OF JURY TRIAL. TENANT AND LANDLORD EACH WAIVE ANY RIGHT
TO TRIAL BY JURY OR TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE,
WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, BETWEEN LANDLORD AND TENANT
ARISING OUT OF THIS LEASE OR ANY OTHER INSTRUMENT, DOCUMENT, OR AGREEMENT
EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED
HERETO.

         27. SUBORDINATION. This Lease and Tenant's interest and rights
hereunder are and shall be subject and subordinate at all times to the lien
of any first mortgage, now existing or hereafter created on or against the
Project or the Premises, and all amendments, restatements, renewals,
modifications, consolidations, refinancing, assignments and extensions
thereof, without the necessity of any further instrument or act on the part
of Tenant. Tenant agrees, at the election of the holder of any such mortgage,
to attorn to any such holder. Tenant agrees upon demand to execute,
acknowledge and deliver such instruments, confirming such subordination and
such instruments of attornment as shall be requested by any such holder.
Tenant hereby appoints Landlord attorney in fact for Tenant irrevocably (such
power of attorney being coupled with an interest) to execute, acknowledge and
deliver any such instrument and instruments for and in the name of the Tenant
and to cause any such instrument to be recorded. Notwithstanding the
foregoing, any such holder may at any time subordinate its mortgage to this
Lease, without Tenant's consent, by notice in writing to Tenant, and
thereupon, this Lease shall be deemed prior to such mortgage without regard
to their respective dates of execution, delivery or recording and in that
event such holder shall have the same rights with respect to this Lease as
though this Lease had been executed prior to the execution, delivery and
recording of such mortgage and had been assigned to such holder. The term
"mortgage" whenever used in this Lease shall be deemed to include deeds of
trust, security assignments and any other encumbrances, and any reference to
the "holder" of a mortgage shall be deemed to include the beneficiary under a
deed of trust.

         28. MECHANIC'S LIENS. Tenant has no express or implied authority to
create or place any lien or encumbrance of any kind upon, or in any manner to
bind the interest of Landlord or Tenant in, the Premises or to charge the
rentals payable hereunder for any claim in favor of any person dealing with
Tenant, including those who may furnish materials or perform labor for any
construction or repairs. Tenant covenants and agrees that it will pay or
cause to be paid all sums legally due and payable by it on account of any
labor performed or materials furnished in connection with any work performed
on the Premises and that it will save and hold Landlord harmless

<PAGE>

from all loss, cost or expense based on or arising out of asserted claims or
liens against the leasehold estate or against the interest of Landlord in the
Premises or under this Lease. Tenant shall give Landlord immediate written
notice of the placing of any lien or encumbrance against the Premises and
cause such lien or encumbrance to be discharged within 30 days of the filing
or recording thereof; provided, however, Tenant may contest such liens or
encumbrances as long as such contest prevents foreclosure of the lien or
encumbrance and Tenant causes such lien or encumbrance to be bonded or
insured over in a manner satisfactory to Landlord within such 30 day period.

         29. ESTOPPEL CERTIFICATES. Tenant agrees, from time to time, within
10 business days after receipt of request of Landlord, to execute and deliver
to Landlord, or Landlord's designee, any estoppel certificate requested by
Landlord, stating that this Lease is in full force and effect, the date to
which rent has been paid, that Landlord is not in default hereunder (or
specifying in detail the nature of Landlord's default), the termination date
of this Lease and such other matters pertaining to this Lease as may be
requested by Landlord. Tenant's obligation to furnish each estoppel
certificate in a timely fashion is a material inducement for Landlord's
execution of this Lease, and Tenant's failure to deliver an estoppel
certificate within said 10-business day period shall be deemed a material
default by Tenant under this Lease. No cure or grace period provided in this
Lease shall apply to Tenant's obligations to timely deliver an estoppel
certificate.

         30. ENVIRONMENTAL REQUIREMENTS. Except for Hazardous Material
contained in products used and sold by Tenant, which products are set forth
on the attached Exhibit "F", Tenant shall not permit or cause any party to
bring any Hazardous Material upon the Premises or transport, store, use,
generate, manufacture or release any Hazardous Material in or about the
Premises without Landlord's prior written consent. Tenant, at its sole cost
and expense, shall operate its business in the Premises in strict compliance
with all Environmental Requirements and shall remediate in a manner
satisfactory to Landlord any Hazardous Materials released on or from the
Project by Tenant, its agents, employees, contractors, subtenants or
invitees. Tenant shall complete and certify to disclosure statements as
requested by Landlord from time to time relating to Tenant's transportation,
storage, use, generation, manufacture or release of Hazardous Materials on
the Premises. The term "Environmental Requirements" means all applicable
present and future statues, regulations, ordinances, rules, codes, judgments,
orders or other similar enactments of any governmental authority or agency
regulating or relating to health, safety, or environmental conditions on,
under, or about the Premises or the environment, including without
limitation, the following: the Comprehensive Environmental Response,
Compensation and Liability Act (42 U.S.C. 39601 et seq.), as amended from
time to time; the Resource Conservation and Recovery Act (42 U.S.C. 36901 et
seq.), as amended from time to time; and all state and local counterparts
thereto, and any regulations or policies promulgated or issued thereunder.
The term "Hazardous Materials" means and includes any substance, material,
waste, pollutant, or contaminant listed or defined as hazardous or toxic,
under any Environmental Requirements (including (a) any "oil" as defined by
the Maryland Environment Code Ann., ss.4-401(g), as amended from time to
time, and regulations promulgated thereunder, (b) any "controlled hazardous
substance" or "hazardous substance" as defined by the Maryland Environment
Code Ann. ss.7-201, as amended from time to time, and regulations promulgated
thereunder, and (c) any "infectious waste" as defined by the Maryland
Environment Code Ann., ss.9-227, as amended from time to time and regulations
promulgated thereunder), asbestos and petroleum, including crude oil or any
fraction thereof, natural gas liquids, liquefied natural gas, or synthetic
gas usable for fuel (or mixtures of natural gas and such synthetic gas). As
defined in Environmental Requirements, Tenant is and shall be deemed to be
the "operator" of Tenant's "facility" and the "owner" of all Hazardous
materials brought on the Premises by Tenant, its agents, employees,
contractors or invitees, and the wastes, by-products, or residues generated,
resulting, or produced therefrom.

         Tenant shall indemnify, defend, and hold Landlord, and its managers
and agents, harmless from and against any and all losses (including, without
limitation, diminution in value of the Premises or the Project and loss of
rental income from the Project and loss of rental income from the Project,
claims, demands, actions, suits damages (including, without limitation,
punitive damages), expenses (including, without limitation, remediation,
removal, repair, corrective action, or cleanup expenses), and costs
(including, without limitation, actual attorneys' fees, consultant fees or
expert fees and including, without limitation, removal or management of any
asbestos brought into the property or disturbed in breach of the requirements
of this Paragraph 30, regardless of whether such removal or management is
required by law) which are brought or recoverable against, or suffered or
incurred by Landlord, or its managers and agents, as a result of any release
of Hazardous Materials for which Tenant is obligated to remediate as provided
above or any other breach of the requirements under this Paragraph 30 by
Tenant, its agents, employees, contractors, subtenants, assignees or
invitees, regardless of whether Tenant had knowledge of such non-compliance.
The obligations of Tenant under this Paragraph 30 shall survive any
termination of this Lease.

         Landlord shall have access to, and a right to perform inspections
and tests of, the Premises to determine Tenant's compliance with
Environmental Requirements, its obligations under this Paragraph 30, or the
environmental condition of the Premises. Access shall be granted to Landlord

<PAGE>

upon Landlord's prior notice to Tenant and at such times so as to minimize,
so far as may be reasonable under the circumstances, any disturbance to
Tenant's operations. Such inspections and tests shall be conducted at
Landlord's expense, unless such inspections or tests reveal that Tenant has
not complied with any Environmental Requirement, in which case, Tenant shall
reimburse Landlord for the reasonable cost of such inspection and tests.
Landlord's receipt of or satisfaction with any environmental assessment in no
way waives any rights that Landlord holds against Tenant.

         31. RULES AND REGULATIONS. Tenant shall, at all times during the
Lease Term and any extension thereof, comply with all reasonable rules and
regulations at any time or from time to time established by Landlord covering
use of the Premises and the Project. The current rules and regulations are
attached hereto as Exhibit E. In the event of any conflict between said rules
and regulations and other provisions of this Lease, the other terms and
provisions of this Lease shall control. Landlord shall not have any liability
or obligation for the breach of any rules or regulations by other tenants in
the Project.

         32. SECURITY SERVICE. Tenant acknowledges and agrees that, while
Landlord may patrol the Project, Landlord is not providing any security
services with respect to the Premises and that Landlord shall not be liable
to Tenant for, and Tenant waives any claim against Landlord with respect to,
any loss by theft or any other damage suffered or incurred by Tenant in
connection with any unauthorized entry into the Premises or any other breach
of security with respect to the Premises.

         33. FORCE MAJEURE. Landlord shall not be held responsible for delays
in the performance of its obligations hereunder when caused by strikes,
lockouts, labor disputes, acts of God, inability to obtain labor or materials
or reasonable substitutes therefor, governmental restrictions, governmental
regulations, governmental controls, delay in issuance of permits, enemy or
hostile governmental action, civil commotion, fire or other casualty, and
other causes beyond the reasonable control of Landlord ("Force Majeure").

         34. ENTIRE AGREEMENT. This Lease constitutes the complete agreement
of Landlord and Tenant with respect to the subject matter hereof. No
representations, inducements, promises or agreements, oral or written, have
been made by Landlord or Tenant, or anyone acting on behalf of Landlord or
Tenant, which are not contained herein, and any prior agreements, promises,
negotiations, or representations are superseded by this Lease. If any printed
provision of this Lease is deleted by the parties, such deletion may not be
utilized in interpreting the rights of the parties hereunder; but each party
shall have all rights which it would have had, at law or otherwise, if such
deleted provision had never been printed herein. This Lease may not be
amended except by an instrument in writing signed by both parties hereto.

         35. SEVERABILITY. If any clause or provision of this Lease is
illegal, invalid or unenforceable under present or future laws, then and in
that event, it is the intention of the parties hereto that the remainder of
this Lease shall not be affected thereby. It is also the intention of the
parties to this Lease that in lieu of each clause or provision of this Lease
that is illegal, invalid or unenforceable, there be added, as a part of this
Lease, a clause or provision as similar in terms to such illegal, invalid or
unenforceable clause or provision as may be possible and be legal, valid and
enforceable.

         36. BROKERS. Tenant represents and warrants that it has dealt with
no broker, agent or other person in connection with this transaction and that
no broker, agent or other person brought about this transaction, other than
the brokers set forth on the first page of this Lease, and Tenant agrees to
indemnify and hold Landlord harmless from and against any claims by any other
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.

         37. MISCELLANEOUS.

                  (a) Any payments or charges due from Tenant to Landlord
hereunder shall be considered rent for all purposes of this Lease.

                  (b) If and when included within the term "Tenant", as used
in this instrument, there is more than one person, firm or corporation, each
shall be Jointly and severally liable for the obligations of Tenant.

                  (c) All notices required or permitted to be given under
this Lease shall be in writing and shall be sent by registered or certified
mail, return receipt requested, or by a reputable national overnight courier
service, postage prepaid, or by hand delivery addressed, if to Tenant, at the
Premises, with a copy to Tenant at 2200 E. Golf Road, Des Plaines, Illinois
60016, Attention: General Counsel, and if to Landlord, c/o Manekin
Corporation, 7165 Columbia Gateway Drive, Columbia, Maryland 21046; Attn:
General Counsel, with a copy to Ann Clary Gordon, Esq., Shapiro and Olander,
20th Floor, 36 S. Charles Street, Baltimore, Maryland 21201. Either party may

<PAGE>

by notice given aforesaid change its address for all subsequent notices.
Except where otherwise expressly provided to the contrary, notice shall be
deemed given upon attempted delivery if delivery is refused for any reason or
upon actual receipt.

                  (d) Except as otherwise expressly provided in this Lease or
as otherwise required by law, Landlord retains the absolute right to withhold
any consent or approval.

                  (e) At Landlord's request from time to time, Tenant shall
furnish Landlord with true and complete copies of its most recent annual and
quarterly financial statements prepared by Tenant or Tenant's accountants and
any other financial information or summaries that Tenant typically provides
to its lenders or shareholders.

                  (f) Neither this Lease nor a memorandum of Lease shall be
filed by or on behalf of Tenant in any public record without Landlord's prior
written approval given in its sole discretion, except that Tenant shall not
be prohibited from filing a copy of same with its 10K Reports if legally
required to do so. Landlord may prepare and file, and upon request by
Landlord Tenant will execute, a memorandum of lease which if recorded shall
be recorded at the expense of the party requesting recordation of same.

                  (g) The normal rule of construction to the effect that any
ambiguities are to be resolved against the drafting party shall not be
employed in the interpretation of this Lease or any exhibits or amendments
hereto.

                  (h) The submission by Landlord to Tenant of this Lease
shall have no binding force or effect, shall not constitute an option for the
leasing of the Premises, nor confer any right or impose any obligations upon
either party until execution of this Lease by both parties.

                  (i) Words of any gender used in this Lease shall be held
and construed to include any other gender, and words in the singular number
shall be held to include the plural, unless the context otherwise requires.
The captions inserted in this Lease are for convenience only and in no way
define, limit or otherwise describe the scope or intent of this Lease, or any
provision hereof, or in any way affect the interpretation of this Lease.

                  (j) Any amount not paid by Tenant within five (5) days
after its due date in accordance with the terms of this Lease (other than
Base Rent or estimated Operating Expenses for which a late charge is set
forth in Section 4 above), shall bear interest from such due date until paid
in full at the lesser of the highest rate permitted by applicable law or
twenty percent (20%) per year. It is expressly the intent of Landlord and
Tenant at all items to comply with applicable law governing the maximum rate
or amount of any interest payable on or in connection with this Lease. If
applicable law is ever judicially interpreted so as to render usurious any
interest called for under this Lease, or contracted for, charged, taken,
reserved, or received with respect to this Lease, then it is Landlord's and
Tenant's express intent that all excess amounts theretofore collected by
Landlord be credited on the applicable obligation (or, if the obligation has
been or would thereby be paid in full, refunded to Tenant), and the
provisions of this Lease immediately shall be deemed reformed and the amounts
thereafter collectible hereunder reduced, without the necessity of the
execution of any new document, so as to comply with the applicable law, but
so as to permit the recovery of the fullest amount otherwise called for
hereunder.

                  (k) Construction and interpretation of this Lease shall be
governed by the laws of the state in which the Project is located, excluding
any principles of conflicts of laws.

                  (l) Time is of the essence as to the performance of
Tenant's obligations under this Lease.

                  (m) All exhibits and addenda attached hereto are hereby
incorporated into this Lease and made a part hereof. In the event of any
conflict between such exhibits or addenda and the terms of this Lease, such
exhibits or addenda shall control.

         38. LIMITATION OF LIABILITY OF LANDLORD. It is understood that
Landlord is a limited liability company and that any 'obligation or liability
whatsoever of Landlord, which may arise at any time under this Lease or any
obligation or liability which may be incurred by it pursuant to any other
instrument, transaction, or undertaking contemplated hereby, shall not be
personally binding upon, nor shall any such liability or obligation be
enforced against the property of Landlord, (other than the Building), nor be
enforced against the property of Landlord's members, directors, shareholders,
officers, employees or agents, regardless of whether such obligation or
liability is in the nature of contract, tort, or otherwise.

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the
day and year first above written.

<PAGE>

WITNESS/ATTEST:                    LANDLORD:

                                   TROY HILL I LLC,

                                   A Delaware Limited Liability Company

                                   By:  The Prudential Insurance Company of

                                        America, managing member _~

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                                   By:                                  (SEAL)
                                       ---------------------------------

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                                   Name:    Nar~e:' - ~'/~,/,//j~. ~,~'
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                                   Title:       V I --V R-               -/-
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                                   TENANT:

                                   UNITED STATIONERS SUPPLY CO.

                                   TITLE:

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