Document:

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                                                                   EXHIBIT 10.11

THIS DOCUMENT WAS PREPARED
BY AND WHEN RECORDED, RETURN
BY MAIL TO:

BLANK ROME LLP
405 Lexington Avenue
New York, New York 10174
Attention: Natalie Pishanidar, Esq.

                    MORTGAGE, ASSIGNMENT OF LEASES AND RENTS,
                      SECURITY AGREEMENT AND FIXTURE FILING

     MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE
FILING dated March 5, 2003, (together with any amendments or modifications
hereto in effect from time to time, the "Mortgage"), between WINCUP HOLDINGS,
INC., having an address c/o Radnor Holdings Corporation, Three Radnor Corporate
Center, Suite 300, 100 Matsonford Road, Radnor, Pennsylvania 19087 ("Mortgagor")
and PNC BANK, NATIONAL ASSOCIATION, a national banking association, having an
address at 1600 Market Street, P2-P0270-31-2, Philadelphia, Pennsylvania 19103,
Attn, Janeann Fehrle, as agent (hereinafter, "Mortgagee") for itself and each of
the other financial institutions (hereinafter, collectively, the "Lenders")
which are and which become parties to that certain Fourth Amended and Restated
Revolving Credit and Security Agreement (as same has been and may be amended,
modified, renewed, extended, replaced or substituted from time to time the "Loan
Agreement" dated as of December 26, 2001 among Mortgagor, Radnor Chemical
Corporation, StyroChem U.S., Ltd., Radnor Holdings Corporation, Radnor Delaware
II, Inc., StyroChem Delaware, Inc., WinCup Texas, Ltd., StyroChem GP, L.L.C.,
StyroChem LP, L.L.C. WinCup GP, L.L.C., WinCup LP, L.L.C., as borrowers, and
Mortgagee, as agent and the Lenders.

                                   WITNESSETH:

     WHEREAS, the Lenders have made available certain credit facilities to
Mortgagor and the other Borrowers (as defined in the Loan Agreement); and

     WHEREAS, Mortgagor is the owner of fee simple title to certain tract of
land located in the City of West Chicago, County of DuPage, State of Illinois,
as more particularly described in Schedule "A" attached hereto and made a part
hereof (the "Real Estate"); and

     WHEREAS, to induce Mortgagee and Lenders to make available and maintain the
credit facilities and to secure payment of the Obligations (as defined in the
Loan Agreement), Mortgagor has agreed to execute and deliver this Mortgage.

                                GRANTING CLAUSES

     NOW, THEREFORE, to secure to Mortgagee (i) the repayment of all Obligations
and all sums due under this Mortgage; (ii) the performance of all terms,
conditions and covenants set forth in the Loan Agreement and the Other
Documents; and (iii) all other obligations or indebtedness of Mortgagor or the
Borrowers to Mortgagee or Lenders of whatever kind or character and whenever
borrowed or incurred under the Loan Agreement or the Other Documents, including
without limitation, principal, interest (as the same may vary in accordance with
the terms of the Loan Agreement), fees, late charges

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and expenses, including attorneys' fees (subsections (i), (ii) and (iii)
collectively, the "Liabilities"), Mortgagor has warranted, mortgaged, granted,
conveyed, assigned, remised and released and by these presents DOES HEREBY
WARRANT, MORTGAGE, GRANT, CONVEY, ASSIGN, REMISE AND RELEASE TO MORTGAGEE, ITS
SUCCESSORS AND ASSIGNS FOREVER, AND HEREBY GRANTS A CONTINUING SECURITY INTEREST
TO MORTGAGEE IN all of Mortgagor's right, title and interest now owned or
hereafter acquired in and to each of the following (collectively, the
"Property"):

     (A) The Real Estate;

     (B) Any and all buildings and improvements now or hereafter erected on,
under or over the Real Estate (the "Improvements");

     (C) Any and all fixtures, machinery, equipment and other articles of real,
personal or mixed property, belonging to Mortgagor, at any time now or hereafter
installed in, attached to or situated in or upon the Real Estate, or the
Improvements, or used or intended to be used in connection with the Real Estate,
or in the operation of the Improvements, plant, business or dwelling situate
thereon, whether or not such real, personal or mixed property is or shall be
affixed thereto, and all replacements, substitutions and proceeds of the
foregoing (all of the foregoing herein called the "Service Equipment"),
including without limitation: (i) all appliances, furniture and furnishings; all
articles of interior decoration, floor, wall and window coverings; all office,
restaurant, bar, kitchen and laundry fixtures, utensils, appliances and
equipment; all supplies, tools and accessories; all storm and screen windows,
shutters, doors, decorations, awnings, shades, blinds, signs, trees, shrubbery
and other plantings; (ii) all building service fixtures, machinery and equipment
of any kind whatsoever; all lighting, heating, ventilating, air conditioning,
refrigerating, sprinkling, plumbing, security, irrigating, cleaning,
incinerating, waste disposal, communications, alarm, fire prevention and
extinguishing systems, fixtures, apparatus, machinery and equipment; all
elevators, escalators, lifts, cranes, hoists and platforms; all pipes, conduits,
pumps, boilers, tanks, motors, engines, furnaces and compressors; all dynamos,
transformers and generators; (iii) all building materials, building machinery
and building equipment delivered on site to the Real Estate during the course
of, or in connection with any construction or repair or renovation of the
Improvements; (iv) all parts, fittings, accessories, accessions, substitutions
and replacements therefor and thereof; and (v) all files, books, ledgers,
reports and records relating to any of the foregoing;

     (D) Any and all leases, subleases, tenancies, licenses, occupancy
agreements or agreements to lease all or any portion of the Real Estate,
Improvements, Service Equipment or all or any other portion of the Property and
all extensions, renewals, amendments, modifications and replacements thereof,
and any options, rights of first refusal or guarantees relating thereto
(collectively, the "Leases"); all rents, income, receipts, revenues, security
deposits, escrow accounts, reserves, issues, profits, awards and payments of any
kind payable under the Leases or otherwise arising from the Real Estate,
Improvements, Service Equipment or all or any other portion of the Property
including, without limitation, minimum rents, additional rents, percentage
rents, parking, maintenance and deficiency rents (collectively, the "Rents");
all of the following personal property to the extent assignable (collectively
referred to as the "Contracts"): all accounts, general intangibles and contract
rights (including any right to payment thereunder, whether or not earned by
performance) of any nature relating to the Real Estate, Improvements, Service
Equipment or all or any other portion of the Property or the use, occupancy,
maintenance, construction, repair or operation thereof; all management
agreements, franchise agreements, utility agreements and deposits, building
service contracts, maintenance contracts, construction contracts and architect's
agreements; all maps, plans, surveys and specifications; all warranties and
guaranties; all permits, licenses and approvals; and all insurance policies,
books of account and other documents, of whatever kind or character, relating to
the use, construction upon,

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occupancy, leasing, sale or operation of the Real Estate, Improvements, Service
Equipment or all or any other portion of the Property;

     (E) Any and all estates, rights, tenements, hereditaments, privileges,
easements, reversions, remainders and appurtenances of any kind benefiting or
appurtenant to the Real Estate, Improvements or all or any other portion of the
Property; all means of access to and from the Real Estate, Improvements or all
or any other portion of the Property, whether public or private; all streets,
alleys, passages, ways, water courses, water and mineral rights relating to the
Real Estate, Improvements or all or any other portion of the Property; all
rights of Mortgagor as declarant or unit owner under any declaration of
condominium or association applicable to the Real Estate, Improvements or all or
any other portion of the Property including, without limitation, all development
rights and special declarant rights; and all other claims or demands of
Mortgagor, either at law or in equity, in possession or expectancy of, in, or to
the Real Estate, Improvements or all or any other portion of the Property (all
of the foregoing described in this subsection E herein called the
"Appurtenances"); and

     (F) Any and all "proceeds" of any of the above-described Real Estate,
Improvements, Service Equipment, Leases, Rents, Contracts and Appurtenances,
which term "proceeds" shall have the meaning given to it in the Uniform
Commercial Code, as amended, (the "Code") of the State in which the Real Estate
is located (collectively, the "Proceeds") and shall additionally include
whatever is received upon the use, lease, sale, exchange, transfer, collection
or other utilization or any disposition or conversion of any of the Real Estate,
Improvements, Service Equipment, Leases, Rents, Contracts and Appurtenances,
voluntary or involuntary, whether cash or non-cash, including, subject to the
terms of this Mortgage, proceeds of insurance and condemnation awards, rental or
lease payments, accounts, chattel paper, instruments, documents, contract
rights, general intangibles, equipment and inventory.

     TO HAVE AND TO HOLD the above granted and conveyed Property unto and to the
proper use and benefit of Mortgagee, its successors and assigns, forever, hereby
expressly waiving and releasing any and all right, benefit, privilege, advantage
or exemption under and by virtue of an and all statutes and laws of the State or
other jurisdiction in which the Property is located providing for the exemption
of homesteads from sale on execution or otherwise.

     PROVIDED ALWAYS, and these presents are upon the express condition, that if
(i) all the Liabilities are paid and performed in full, (ii) each and every
representation, warranty, agreement and covenant of this Mortgage and the Loan
Agreement and the Other Documents is complied with and abided by, and (iii) any
swap agreements secured hereunder have matured or been terminated, then this
Mortgage and the estate hereby created shall cease and be null and void and
Mortgagee shall release the lien of this Mortgage at the request and at the sole
cost and expense of Mortgagor. Mortgagor shall pay Mortgagee's out-of-pocket
costs incurred in connection with such release.

     All capitalized terms not otherwise defined herein shall have the meaning
ascribed to them in the Loan Agreement. To the extent of any inconsistency
between the terms hereof and the terms of the Loan Agreement, the terms of the
Loan Agreement shall control, except that with respect to the remedies of a
mortgagee under the law of the State of Illinois, the terms of this Mortgage
shall govern; provided, however, that Mortgagor and Mortgagee expressly agree
that no conflict shall be deemed to exist where one document imposes a stricter
obligation than another, so long as compliance with the stricter obligation does
not make compliance with the less strict obligation impossible.

     The present principal amount of the Obligations secured hereby is
$45,000,000; the maximum principal amount, including present and future
Liabilities, which may be secured hereby at any one time is $45,000,000, plus
interest, plus any disbursements and taxes and insurance on the Property and any

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other sums advanced in accordance with the terms hereof or the Loan Agreement or
any of the Other Documents to protect the security of this Mortgage, the Loan
Agreement or any of the Other Documents, plus interest on such disbursements and
advances at the rates set forth in the Loan Agreement (the "Secured Amount").
For purposes of this Mortgage, so long as the aggregate principal balance of the
Liabilities outstanding equals or exceeds the Secured Amount, the amount of the
Liabilities secured by this Mortgage shall at all times equal only the Secured
Amount. The Secured Amount shall be reduced only by the last and final sums that
are repaid with respect to the Liabilities so as to make the aggregate principal
balance of the Liabilities equal to an amount less than the Secured Amount, and
shall not be reduced by any intervening repayments of the Liabilities.

     AND Mortgagor covenants and agrees with and represents to Mortgagee as
follows:

1.   FUTURE ADVANCES; PROTECTION OF PROPERTY. This Mortgage shall secure any
additional loans as well as any and all present or future advances and
readvances under the Loan Agreement or any other Liabilities made by Mortgagee
or any Lender to or for the benefit of Mortgagor, Borrowers or the Property,
including, without limitation: (a) principal, interest, late charges, fees and
other amounts due under the Loan Agreement, the Other Documents or this
Mortgage; (b) all advances by Mortgagee to Mortgagor or any other person to pay
costs of erection, construction, alteration, repair, restoration, maintenance
and completion of any Improvements; (c) all advances made or costs incurred by
Mortgagee for the payment of real estate taxes, assessments or other
governmental charges, maintenance charges, insurance premiums, appraisal
charges, environmental inspection, audit, testing or compliance costs, and costs
incurred by Mortgagee for the enforcement and protection of the Property or the
lien of this Mortgage; and (d) all legal fees, costs and other expenses incurred
by Mortgagee by reason of any default or otherwise in connection with the
Liabilities. Mortgagor agrees that if, at any time during the term of this
Mortgage or following a foreclosure hereof (whether before or after the entry of
a judgment of foreclosure), Mortgagor fails to perform or observe any covenant
or obligation under this Mortgage including, without limitation, payment of any
of the foregoing, Mortgagee may (but shall not be obligated to) take such steps
as are reasonably necessary to remedy any such nonperformance or nonobservance
and provide payment thereof. All amounts advanced by Mortgagee shall be added to
the amount secured by this Mortgage and the Loan Agreement (and, if advanced
after the entry of a judgment of foreclosure, by such judgment of foreclosure),
and shall be due and payable on demand, together with interest at the Default
Rate set forth in the Note, such interest to be calculated from the date of such
advance to the date of repayment thereof.

2.   REPRESENTATIONS, WARRANTIES AND COVENANTS.

     2.1. Payment and Performance. Mortgagor shall (a) pay to Mortgagee all sums
required to be paid by Mortgagor under the Loan Agreement and the Other
Documents, in accordance with their stated terms and conditions; (b) perform and
comply with all terms, conditions and covenants set forth in the Loan Agreement
and each of the Other Documents by which Mortgagor is bound; and (c) perform and
comply with all of Mortgagor's obligations and duties as landlord under any
Leases.

     2.2. Seisin and Warranty. Mortgagor hereby warrants that (a) Mortgagor is
seized of an indefeasible estate in fee simple in, and warrants the title to,
the Real Estate and the Improvements subject only to those exceptions more
particularly described in the marked up title commitment No. 03-04502 issued by
Commonwealth Land Title Insurance Company and accepted by Mortgagee in
connection with this transaction (the "Permitted Exceptions"); (b) Mortgagor has
the right, full power and lawful authority to warrant, mortgage, grant, convey,
assign, remise and release the same to Mortgagee in the manner and form set
forth herein; and (c) this Mortgage is a valid and enforceable first lien on the
Property. Mortgagor hereby covenants that Mortgagor shall (a) preserve such
title and the

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validity and priority of the lien of this Mortgage and shall forever warrant and
defend the same, subject to the Permitted Exceptions, to Mortgagee against all
lawful claims whatsoever; and (b) execute, acknowledge and deliver all such
further documents or assurances as may at any time hereafter be required by
Mortgagee to protect fully the lien of this Mortgage.

     2.3. Insurance.

          (a) Mortgagor shall obtain and maintain at all times throughout the
term of this Mortgage the following insurance: (i) insurance in accordance with
the terms of the Loan Agreement; (ii) "All-Risk" fire and extended coverage
hazard insurance (non-reporting Commercial Property Policy with Special Cause of
Loss form) covering the Property in an aggregate amount not less than 100% of
the agreed upon full insurable replacement value of the tangible Property,
including coverage for loss of rents or business interruption and excluding
roads, foundations, parking areas, walkways and like improvements to the extent
customarily excluded from policies being issued by insurers of similarly
situated properties; (iii) during the course of any construction,
reconstruction, remodeling or repair of any Improvements, builders' all-risk
extended coverage insurance (non-reporting Completed Value with Special Cause of
Loss form) in amounts based upon the completed replacement value of the
Improvements (excluding roads, foundations, parking areas, paths, walkways and
like improvements) and endorsed to provide that occupancy by any person shall
not void such coverage; and (iv) if the Improvements are required to be insured
pursuant to the National Flood Insurance Reform Act of 1994, and the regulations
promulgated thereunder, flood insurance in an amount at least equal to the
lesser of the agreed upon full insurable replacement value of the Improvements
or the maximum limit of coverage available.

          (b) Each insurance policy required under this Section shall: (i) be
written by an insurance company authorized or licensed to do business in the
state within which the Real Estate is located having an Alfred M. Best Company,
Inc. rating of "A-" or higher and a financial size category of not less than IX;
(ii) be for terms of a least one year, with premium prepaid; (iii) be subject to
the reasonable approval of Mortgagee as to insurance companies, amounts,
content, forms of policies and expiration dates; and (iv) name Mortgagee, its
successors and assigns: (1) as an additional insured under all liability
insurance policies, and (2) as the first mortgagee, under a standard
non-contributory mortgagee clause, on all property insurance policies and all
loss of rents or loss of business income insurance policies.

          (c) Mortgagor further agrees that each insurance policy: (i) shall
provide at least thirty (30) days' prior written notice to Mortgagee prior to
any policy reduction or cancellation for any reason; (ii) shall contain an
endorsement or agreement by the insurer that any loss shall be payable to
Mortgagee in accordance with the terms of such policy notwithstanding any act or
negligence of Mortgagor which might otherwise result in forfeiture of such
insurance; (iii) shall waive all rights of setoff, counterclaim, deduction or
subrogation against Mortgagor; and (iv) shall exclude Mortgagee from the
operation of any coinsurance clause.

          (d) At least thirty (30) days prior to the expiration of any insurance
policy, Mortgagor shall furnish evidence satisfactory to Mortgagee that such
policy has been renewed or replaced or is no longer required.

     2.4. Transfer of Title. Except as expressly provided in the Loan Agreement,
without the prior written consent of Mortgagee in each instance, Mortgagor shall
not cause or permit any transfer of the Property or any part thereof, whether
voluntarily, involuntarily (other than by reason of condemnation) or by
operation of law, nor shall Mortgagor enter into any agreement or transaction to

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transfer, or accomplish in form or substance a transfer, of the Property. A
"transfer" of the Property includes: (a) the direct or indirect sale, transfer
or conveyance of the Property or any portion thereof or interest therein; (b)
the execution of an installment sale contract or similar instrument affecting
all or any portion of the Property; (c) if Mortgagor, or any general partner or
member of Mortgagor, is a corporation, partnership, limited liability company or
other business entity, the transfer (whether in one transaction or a series of
transactions) of any stock, partnership, limited liability company or other
ownership interests in such corporation, partnership, limited liability company
or entity other than the transfer of any such interest between or among the
members of Mortgagor, or to the estate of its current owner, upon the death of
such owner; (d) if Mortgagor, or any general partner or member of Mortgagor, is
a corporation, the creation or issuance of new stock by which an aggregate of
more than 10% of such corporation's stock shall be vested in a party or parties
who are not now stockholders; and (e) an agreement by Mortgagor leasing all or a
substantial part of the Property for other than actual occupancy by a space
tenant thereunder or a sale, assignment or other transfer of or the grant of a
security interest in and to any Leases.

     2.5. No Encumbrances. Except as permitted in the Loan Agreement and for the
Permitted Exceptions, Mortgagor shall not create or permit to exist any
mortgage, pledge, lien, security interest (including, without limitation, a
purchase money security interest), encumbrance, attachment, levy, distraint or
other judicial process on or against the Property or any part thereof
(including, without limitation, fixtures and other personalty), whether superior
or inferior to the lien of this Mortgage, without the prior written consent of
Mortgagee.

     2.6. Removal of Fixtures. Except as permitted in the Loan Agreement,
Mortgagor shall not remove or permit to be removed from the Real Estate any
fixtures presently or in the future owned by Mortgagor as the term "fixtures" is
defined by the law of the state where the Property is located (unless such
fixtures have been replaced with similar fixtures of equal or greater utility
and value).

     2.7. Compliance with Applicable Laws. Mortgagor agrees to observe, conform
and comply, and to cause its tenants to observe, conform and comply in all
material respects with all applicable federal, state, county, municipal and
other governmental or quasi-governmental laws, rules, regulations, ordinances,
codes, requirements, covenants, conditions, orders, licenses, permits, approvals
and restrictions, including without limitation, Environmental Laws (as defined
below) and the Americans with Disabilities Act of 1990 (collectively, the "Legal
Requirements"), now or hereafter affecting all or any part of the Property, its
occupancy or the business or operations now or hereafter conducted thereon and
the personalty contained therein, within such time as required by such Legal
Requirements to the extent the non-observance, non-conformance or non-compliance
with the Legal Requirements could have a Material Adverse Effect on Mortgagor.
Mortgagor represents and warrants that the Property currently is, in compliance
in all material respects with all Legal Requirements applicable to the Property.

     2.8. Damage, Destruction and Condemnation.

          (a) If all or any part of the Property shall be damaged or destroyed,
or if title to or the temporary use of the whole or any part of the Property
shall be taken or condemned by a competent authority for any public or
quasi-public use or purpose, there shall be no abatement or reduction in the
amounts payable by Mortgagor under the Loan Agreement and Mortgagor shall
continue to be obligated to make such payments.

          (b) If all or any part of the Property is partially or totally damaged
or destroyed, Mortgagor shall give prompt notice thereof to Mortgagee, and
Mortgagee may make proof of loss if not made promptly by Mortgagor. Mortgagor
hereby authorizes and directs any affected insurance company

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to make payment in excess of $100,000 under such insurance, including return of
unearned premiums, to Mortgagee instead of to Mortgagor and Mortgagee jointly,
and Mortgagor appoints Mortgagee as Mortgagor's attorney-in-fact to endorse any
draft thereof, which appointment, being for security, is coupled with an
interest and irrevocable. Mortgagee is hereby authorized and empowered by
Mortgagor to settle, adjust or compromise, any claim for loss, damage or
destruction to the Property if Mortgagor does not promptly settle, adjust or
compromise such claim. Mortgagor shall have no claim against the insurance
proceeds, or be entitled to any portion thereof, and all rights to the insurance
proceeds are hereby assigned to Mortgagee as security for payment of the
Liabilities. Mortgagee shall pay or apply all or any part of the insurance
proceeds in accordance with the terms of the Loan Agreement.

          (c) Promptly upon obtaining knowledge of the institution of any
proceeding for the condemnation of all or any part of the Property, Mortgagor
shall give notice to Mortgagee. Mortgagor shall, at its sole cost and expense,
diligently prosecute any such proceeding and shall consult with Mortgagee, its
attorneys and experts, and shall cooperate with it in the defense of any such
proceeding. Mortgagee may participate in any such proceeding and Mortgagor shall
from time to time deliver to Mortgagee all instruments requested by it to permit
such participation. Mortgagor shall not, without Mortgagee's prior written
consent, enter into any agreement (i) for the taking or conveyance in lieu
thereof of all or any part of the Property, or (ii) to compromise, settle or
adjust any such proceeding. All awards and proceeds of condemnation in excess of
$100,000 are hereby assigned to Mortgagee, and Mortgagor, upon request by
Mortgagee, agrees to make, execute and deliver any additional assignments or
documents necessary from time to time to enable Mortgagee to collect the same.
Such awards and proceeds shall be paid or applied by Mortgagee, in its sole
discretion, to: (i) Obligations, in such order as Mortgagee shall determine, in
its sole discretion; (ii) restoration, replacement or repair of the Property
subject to such conditions as Mortgagee determines to be appropriate and as are
customarily imposed by institutional lenders for similar properties; or (iii)
Mortgagor.

          (d) Nothing herein shall relieve Mortgagor of its duty to repair,
restore, rebuild or replace the Property following damage or destruction or
partial condemnation if no or inadequate insurance proceeds or condemnation
awards are available to defray the cost of repair, restoration, rebuilding or
replacement.

     2.9. Required Notices. Mortgagor shall notify Mortgagee within five (5)
days of: (a) receipt of any notice from any governmental or quasi-governmental
authority relating to the structure, use or occupancy of the Property or
alleging a violation of any Legal Requirement; (b) a substantial change in the
occupancy or use of all or any part of the Property; (c) receipt of any default
notice from the holder of any lien or security interest in all or any part of
the Property; (d) commencement of any litigation that could have a Material
Adverse Effect on Mortgagor or the value of the Property; (e) a pending or
threatened condemnation of all or any part of the Property; (f) a fire or other
casualty causing damage in excess of $10,000 to all or any part of the Property;
(g) receipt of any notice with regard to any Release of Hazardous Substances (as
such terms are defined below) or any other environmental matter which could have
a Material Adverse Effect on the Property or Mortgagor's interest therein; (h)
receipt of any request for information, demand letter or notification of
potential liability from any entity relating to potential responsibility for
investigation or clean-up of Hazardous Substances on the Property or at any
other site owned or operated by Mortgagor; (i) receipt of any notice from any
tenant of all or any part of the Property alleging a default, failure to perform
or any right to terminate its lease or to set-off rents; or (j) receipt of any
notice of the imposition of, or of threatened or actual execution on, any lien
on or security interest in all or any part of the Property.

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3.   SECURITY AGREEMENT. This Mortgage constitutes a financing statement filed
as a fixture filing in the County Recorder's Office (the "Official Records") in
which the Real Estate is situated with respect to any and all fixtures included
within the term "Property" as used herein, and with respect to any goods or
other personal property that may now be or hereafter become such fixtures. For
purposes of such financing statement, Mortgagor is the "debtor" and Mortgagee is
the "secured party", and their respective mailing addresses are those set out in
this Mortgage. Mortgagor hereby grants to Mortgagee a security interest in the
personal and other property (other than real property) included in the Property,
and all replacements of, substitutions for, and additions to, such property, and
the proceeds thereof.

Mortgagor shall, at Mortgagor's own expense, execute, deliver, file and refile
any financing or continuation statements or other security agreements Mortgagee
may reasonably require from time to time to perfect, confirm or maintain the
lien of this Mortgage with respect to such property. A photocopy of an executed
financing statement shall be effective as an original. Without limiting the
foregoing, if Mortgagor fails to execute, deliver and file such instruments
within ten (10) days after written demand by Mortgagee, Mortgagor hereby
irrevocably appoints Mortgagee attorney-in-fact for Mortgagor to execute,
deliver and file such instruments for or on behalf of Mortgagor at Mortgagor's
expense, which appointment, being for security, is coupled with an interest and
shall be irrevocable.

4.   ASSIGNMENT OF LEASES.

     4.1. Mortgagor hereby absolutely, presently and unconditionally conveys,
transfers and assigns to Mortgagee all of Mortgagor's right, title and interest,
now existing or hereafter arising, in and to the Leases and Rents.
Notwithstanding that this assignment is effective immediately, so long as no
Event of Default exists, Mortgagor shall have the privilege under a revocable
license granted hereby to operate and manage the Property and to collect, as
they become due, but not prior to accrual, the Rents. Mortgagor shall receive
and hold such Rents in trust as a fund to be applied, and Mortgagor hereby
covenants and agrees that such Rents shall be so applied, first to the
operation, maintenance and repair of the Property and the payment of interest,
principal and other sums becoming due under the Liabilities, before retaining
and/or disbursing any part of the Rents for any other purpose. The license
herein granted to Mortgagor shall automatically, without notice or any other
action by Mortgagee, terminate upon the occurrence of an Event of Default, and
all Rents subsequently collected or received by Mortgagor shall be held in trust
by Mortgagor for the sole and exclusive benefit of Mortgagee. Nothing contained
in this Section 4.1, and no collection by Mortgagee of Rents, shall be construed
as imposing on Mortgagee any of the obligations of the lessor under the Leases.

     4.2. Mortgagor shall timely perform all of its obligations under the
Leases. Mortgagor represents and warrants that: (a) Mortgagor has title to and
full right to assign presently, absolutely and unconditionally the Leases and
Rents; (b) no other assignment of any interest in any of the Leases or Rents has
been made; (c) there are no leases or agreements to lease all or any portion of
the Property now in effect except the Leases, true and complete copies of which
have been furnished to Mortgagee, and no written or oral modifications have been
made thereto; (d) there is no existing default by Mortgagor or by any tenant
under any of the Leases, nor has any event occurred which due to the passage of
time, the giving or failure to give notice, or both, would constitute a default
under any of the Leases and, to the best of Mortgagor's knowledge, no tenant has
any defenses, set-offs or counterclaims against Mortgagor; (e) the Leases are in
full force and effect; and (f) Mortgagor has not accepted Rent under any Lease
more than thirty (30) days in advance of its accrual, and payment thereof has
not otherwise been forgiven, discounted or compromised.

5.   DECLARATION OF NO OFFSET. Mortgagor represents to Mortgagee that Mortgagor
has no knowledge of any offsets, counterclaims or defenses to the Liabilities
either at law or in equity. Mortgagor shall, within ten (10) days after written
request, furnish to Mortgagee or Mortgagee's

                                       Page 8

<PAGE>

designee a written statement in form reasonably satisfactory to Mortgagee
stating the amount due under the Liabilities and whether, to Mortgagor's
knowledge, there are offsets or defenses against the same, and if so, the nature
and extent thereof.

6.   ENVIRONMENTAL MATTERS.

     6.1. Definitions. As used herein, "Environmental Laws" shall mean all
applicable existing or future federal, state and local statutes, ordinances,
regulations, rules, executive orders, standards and requirements, including the
requirements imposed by common law, concerning or relating to industrial
hygiene and the protection of health and the environment including but not
limited to: (a) those relating to the generation, manufacture, storage,
transportation, disposal, release, emission or discharge of Hazardous Substances
(as hereinafter defined); (b) those in connection with the construction, fuel
supply, power generation and transmission, waste disposal or any other
operations or processes relating to the Property; and (c) those relating to the
atmosphere, soil, surface and ground water, wetlands, stream sediments and
vegetation on, under, in or about the Property. Any terms mentioned herein which
are defined in any Environmental Law shall have the meanings ascribed to such
terms in said laws; provided, however, that if any of such laws are amended so
as to broaden any term defined therein, such broader meaning shall apply
subsequent to the effective date of such amendment.

     6.2. Representations, Warranties and Covenants. Except as disclosed in the
Phase I environmental report prepared by URS Corporation, Mortgagor represents,
warrants, covenants and agrees as follows:

          (a) To Mortgagor's knowledge, neither Mortgagor nor the Property or
any occupant thereof is in violation of or subject to any existing, pending or
threatened investigation or inquiry by any governmental authority pertaining to
any Environmental Law. Mortgagor shall not cause or permit the Property to be in
violation in any material respect of, or do anything which would subject the
Property to any remedial obligations under, any Environmental Law, and shall
promptly notify Mortgagee in writing of any existing, pending or threatened
investigation or inquiry of which Mortgagor has knowledge by any governmental
authority in connection with any Environmental Law. In addition, Mortgagor shall
provide Mortgagee with copies of any and all material written communications
with any governmental authority in connection with any violation of any
Environmental Law, concurrently with Mortgagor's giving or promptly after
Mortgagor's receiving of same.

          (b) There are no visible signs of any release, spill, discharge, leak,
disposal or emission (individually a "Release" and collectively, "Releases") of
any Hazardous Material, Hazardous Substance or Hazardous Waste, including
gasoline, petroleum products, explosives, toxic substances, solid wastes and
radioactive materials (collectively, "Hazardous Substances") at, upon, under or
within the Property. During the term of this Mortgage, to the extent required by
any Environmental Laws, Mortgagor shall remove or remediate any Release at the
Property promptly upon discovery at its sole cost and expense.

          (c) To Mortgagor's knowledge, the Property has never been used by the
previous owners and/or operators nor has or will be used by Mortgagor during the
term of this Mortgage to refine, produce, store, handle, transfer, process,
transport, generate, manufacture, heat, treat, recycle or dispose of Hazardous
Substances, except for such quantities as are handled in accordance with
applicable manufacturers' instructions and Environmental Laws and in proper
storage containers as are necessary for the operation of the commercial business
of Mortgagor or its tenants ("Permitted Substances").

                                       Page 9

<PAGE>

          (d) The Property: (i) is being and has been operated by Mortgagor in
compliance in all material respects with all Environmental Laws, and all permits
required thereunder have been obtained and complied with in all material
respects; and (ii) does not have any Hazardous Substances present excepting
Permitted Substances.

          (e) Mortgagor will and will cause its tenants to operate the Property
in compliance in all material respects with all Environmental Laws and, other
than Permitted Substances, will not place or permit to be placed any Hazardous
Substances on the Property.

          (f) During Mortgagor's period of ownership of the Real Estate, and to
Mortgagor's knowledge prior thereto, no lien has been attached to or threatened
to be imposed upon the Property, and, to Mortgagor's knowledge, there is no
basis for the imposition of any such lien based on any governmental action under
Environmental Laws. In the event that any environmental lien is filed against
the Property, Mortgagor shall, within (30) days from the date that the Mortgagor
is given notice of such lien (or within such shorter period of time as is
appropriate in the event that steps have commenced to have the Property sold),
either: (i) pay the claim and remove the lien from the Property; or (ii) furnish
a cash deposit, bond or other security reasonably satisfactory in form and
substance to Mortgagee in an amount sufficient to discharge the claim out of
which the lien arises.

     6.3. Right to Inspect and Cure. To the extent provided in the Loan
Agreement, Mortgagee shall have the right to conduct or have conducted by its
agents or contractors such environmental inspections, audits and tests as
Mortgagee shall deem necessary or advisable from time to time at the sole cost
and expense of Mortgagor.

7.   EVENTS OF DEFAULT. Each of the following shall constitute a default (each,
an "Event of Default") hereunder:

     7.1. Non-payment when due of any sum required to be paid to Mortgagee under
the Loan Agreement or any of the Other Documents, including without limitation,
principal and interest;

     7.2. A breach by Mortgagor of any other term, covenant, condition,
obligation or agreement under this Mortgage, and the continuance of such breach
for a period of thirty (30) days after written notice thereof shall have been
given to Mortgagor; or

     7.3. An Event of Default under the Loan Agreement or any of the Other
Documents;

8.   REMEDIES. If an Event of Default shall have occurred, Mortgagee may take
any of the following actions:

     8.1. Acceleration. Mortgagee may exercise all rights and remedies under the
Loan Agreement.

     8.2. Possession. Mortgagee may enter upon and take possession of the
Property, with or without legal action, lease the Property, collect therefrom
all rentals and, after deducting all out-of-pocket costs of collection and
administration expense, apply the net rentals to any one or more of the
following items in such manner and in such order of priority as Mortgagee, in
Mortgagee's sole discretion, may elect: the payment of any sums due under any
prior lien, taxes, water and sewer rents, charges and claims, insurance premiums
and all other carrying charges, to the maintenance, repair or restoration of the
Property, or on account of the Liabilities. Mortgagee is given full authority to
do any act which Mortgagor could do in connection with the management and
operation of the Property. This covenant is

                                       Page 10

<PAGE>

effective either with or without any action brought to foreclose this Mortgage
and without applying for a receiver of such rents. In addition to the foregoing,
upon the occurrence of an Event of Default, Mortgagor shall pay monthly in
advance to Mortgagee or to any receiver appointed to collect said rents the fair
and reasonable rental value for Mortgagor's use and occupation of the Property,
and upon default in any such payment Mortgagor shall vacate and surrender the
possession of the Property to Mortgagee or to such receiver. If Mortgagor does
not vacate and surrender the Property then Mortgagor may be evicted by summary
proceedings.

     8.3. Foreclosure. Mortgagee may institute any one or more actions of
mortgage foreclosure against all or any part of the Property, or take such other
action at law, equity or by contract for the enforcement of this Mortgage and
realization on the security herein or elsewhere provided for, as the law may
allow, and may proceed therein to final judgment and execution for the entire
unpaid balance of the Liabilities. The unpaid balance of any judgment shall bear
interest at the greater of (a) the statutory rate provided for judgments, or (b)
the Default Rate. Without limiting the foregoing, Mortgagee may foreclose this
Mortgage and exercise its rights as a secured party for all or any portion of
the Liabilities which are then due and payable, subject to the continuing lien
of this Mortgage for the balance not then due and payable. In case of any sale
of the Property by judicial proceedings, the Property may be sold in one parcel
or in such parcels, manner or order as Mortgagee in its sole discretion may
elect. Mortgagor, for itself and anyone claiming by, through or under it, hereby
agrees that Mortgagee shall in no manner, in law or in equity, be limited,
except as herein provided, in the exercise of its rights in the Property or in
any other security hereunder or otherwise appertaining to the Liabilities or any
other obligation secured by this Mortgage, whether by any statute, rule or
precedent which may otherwise require said security to be marshalled in any
manner and Mortgagor, for itself and others as aforesaid, hereby expressly
waives and releases any right to or benefit thereof. The failure to make any
tenant a defendant to a foreclosure proceeding shall not be asserted by
Mortgagor as a defense in any proceeding instituted by Mortgagee to collect the
Liabilities or any deficiency remaining unpaid after the foreclosure sale of the
Property.

     8.4. Appointment of Receiver. Upon the occurrence of an Event of Default,
Mortgagee, as a matter of right and without regard to the then value of the
Mortgaged Premises or the adequacy of any security for the Liabilities, shall
have the right to apply to any court having jurisdiction to appoint a receiver
or receivers for the Property, and Mortgagor hereby irrevocably consents to such
appointment. Any such receiver or receivers shall have all the usual powers and
duties of receivers in like or similar cases and all the powers and duties of
Mortgagee in case of entry as provided herein. Mortgagor agrees to promptly
deliver to any such receiver all Leases, Rents, Contracts, documents, financial
data and other information requested by such receiver in connection with the
Property and, without limiting the foregoing, Mortgagor hereby authorizes
Mortgagee to deliver to any such receiver any or all of the Leases, Rents,
Contracts, documents, data and information in Mortgagee's possession relating to
the Property.

     8.5. Rights as a Secured Party. Mortgagee shall have, in addition to other
rights and remedies available at law or in equity, the rights and remedies of a
secured party under the Code. Mortgagee may elect to foreclose such of the
Property as then comprise fixtures pursuant either to the law applicable to
foreclosure of an interest in real estate or to that applicable to personal
property under the Code. To the extent permitted by law, Mortgagor waives the
right to any stay of execution and the benefit of all exemption laws now or
hereafter in effect.

     8.6. Excess Monies. Mortgagee may apply on account of the Liabilities any
unexpended monies still retained by Mortgagee that were paid by Mortgagor to
Mortgagee: (a) for the payment of, or as security for the payment of taxes,
assessments or other governmental charges, insurance premiums, or any other
charges; or (b) to secure the performance of some act by Mortgagor.

                                       Page 11

<PAGE>

     8.7. Other Remedies. Mortgagee shall have the right, from time to time, to
bring an appropriate action to recover any sums required to be paid by Mortgagor
under the terms of this Mortgage, as they become due, without regard to whether
or not any other Liabilities shall be due, and without prejudice to the right of
Mortgagee thereafter to bring an action of mortgage foreclosure, or any other
action, for any default by Mortgagor existing at the time the earlier action was
commenced. In addition, Mortgagee shall have the right to set-off all or any
part of any amount due by Mortgagor to Mortgagee under any of the Liabilities,
against any indebtedness, liabilities or obligations owing by Mortgagee in any
capacity to Mortgagor, including any obligation to disburse to Mortgagor any
funds or other property on deposit with or otherwise in the possession, control
or custody of Mortgagee.

     8.8. Attorney-In-Fact. Mortgagor hereby constitutes Mortgagee its
attorney-in-fact with full power of substitution to take possession of the
Property upon any Event of Default and, as Mortgagee in its sole discretion
deems necessary or proper, to execute and deliver all instruments required by
Mortgagee to accomplish the disposition of the Property; this power of attorney
is a power coupled with an interest and is irrevocable while any of the
Liabilities are outstanding.

     8.9. Waiver. Mortgagor waives, to the extent permitted by law, (a) the
benefit of all laws now existing or that may hereafter be enacted providing for
any appraisement before sale of any portion of the Property, (b) all rights of
reinstatement, redemption, valuation, appraisement, homestead, moratorium,
exemption, extension, stay of execution, notice of election to mature or declare
due the whole of the Liabilities in the event of foreclosure of the liens hereby
created, (c) all rights and remedies which Mortgagor may have or be able to
assert by reason of the laws of the State of Illinois pertaining to the rights
and remedies of sureties, and (d) any rights, legal or equitable, to require
marshaling of assets or to require foreclosure sales in a particular order.
Without limiting the generality of the preceding sentence, Mortgagor, on its own
behalf and on behalf of each and every person acquiring any interest in or title
to the Property subsequent to the date of this Mortgage, hereby irrevocably
waives, to the extent permitted by law, any and all rights of reinstatement or
redemption from sale or from or under any order, judgment or decree of
foreclosure of this Mortgage or under any sale pursuant to any statute order
decree or judgment of any court. Mortgagor, for itself and for all persons
hereafter claiming through or under it or who may at any time hereafter become
holders of liens junior to the lien of this Mortgage, hereby expressly waives
and releases all rights to direct the order in which any of the Property shall
be sold in the event of any sale or sales pursuant hereto and to have any of the
Property and/or any other property now or hereafter constituting security for
any of the indebtedness secured hereby marshaled upon any foreclosure of this
Mortgage or of any other security for any of said indebtedness. Mortgagee shall
have the right to determine the order in which any or all of the Property shall
be subjected to the remedies provided herein. Mortgagee shall have the right to
determine the order in which any or all portions of the Liabilities are
satisfied from the proceeds realized upon the exercise of the remedies provided
herein.

     8.10. No Liability on Mortgagee. Notwithstanding anything contained in this
Mortgage, Mortgagee shall not be obligated to perform or discharge, and does not
undertake to perform or discharge, any obligation, duty or liability of the
Mortgagor, whether under this Mortgage, under any of the Leases, under any
Contract or under any other Property, and the Mortgagor shall and does hereby
agree to indemnify against and hold Mortgagee harmless of and from: any and all
liabilities, losses or damages which Mortgagee may incur or pay under or with
respect to any of the Property or under or by reason of its exercise of rights
hereunder; and any and all claims and demands whatsoever which may be asserted
against it by reason of any alleged obligations or undertakings on its part to
perform or discharge any of the terms, covenants or agreements contained in any
of the Property or in any of the contracts, documents or instruments evidencing
or creating any of the Property. Mortgagee shall not have responsibility for the
control, care, management or repair of the Property or be responsible or liable
for any negligence in the management, operation, upkeep, repair or control of
the Property resulting in loss,

                                     Page 12

<PAGE>

injury or death to any tenant, licensee, employee, stranger or other person. No
liability shall be enforced or asserted against Mortgagee in its exercise of the
powers herein granted to it, and Mortgagor expressly waives and releases any
such liability. Should Mortgagee incur any such liability, loss or damage under
any of the Leases or under or by reason hereof, or in the defense of any claims
or demands, Mortgagor agrees to reimburse Mortgagee within ten (10) days after
demand for the full amount thereof, including costs, expenses and reasonable
attorneys' fees. Notwithstanding the foregoing, Mortgagee shall not be released
of liability nor entitled to be indemnified by Mortgagor for any liability, loss
or damage to the extent arising from any act or omission of Mortgagee after
Mortgagee takes physical possession of the Property or becomes owner of the
Property.

9.   MISCELLANEOUS.

     9.1. Notices. All notices and communications under this Mortgage shall be
in writing and shall be given by either (a) hand-delivery, (b) first class mail
(postage prepaid), or (c) reliable overnight commercial courier (charges
prepaid), to the addresses listed in the preamble of this Mortgage. Notice shall
be deemed to have been given and received: (a) if by hand delivery, upon
delivery; (b) if by mail, three (3) business days after the date first deposited
in the United States mail; and (c) if by overnight courier, on the date
scheduled for delivery. A party may change its address by giving written notice
to the other party as specified herein.

     9.2. No Property Manager Lien. Any property management agreement for or
relating to all or any part of the Property, whether now in effect or entered
into hereafter by Mortgagor or on behalf of Mortgagor, shall contain a
subordination provision whereby the property manager forever and unconditionally
subordinates to the lien of this Mortgage any and all mechanic's lien rights and
claims that it or anyone claiming through or under it may have at any time
pursuant to any statute or law, including, without limitation, Illinois Compiled
Statutes, Chapter 770, Section 60/1. Such property management agreement or a
short form thereof, including such subordination, shall, at Mortgagee's request,
be recorded with the office of the recorder of deeds for the county in which the
Property are located. Mortgagor's failure to cause any of the foregoing to occur
shall constitute an Event of Default under this Mortgage.

     9.3. Remedies Cumulative. The rights and remedies of Mortgagee as provided
in this Mortgage, in the Loan Agreement or in any Other Document shall be
cumulative and concurrent, may be pursued separately, successively or together,
may be exercised as often as occasion therefor shall arise, and shall be in
addition to any other rights or remedies conferred upon Mortgagee at law or in
equity. The failure, at any one or more times, of Mortgagee to assert the right
to declare the Liabilities due, grant any extension of time for payment of the
Liabilities, take other or additional security for the payment thereof, release
any security, change any of the terms of the Loan Agreement or any of the Other
Documents, or waive or fail to exercise any right or remedy under the Loan
Agreement or any Other Document shall not in any way affect this Mortgage or the
rights of Mortgagee.

     9.4. No Implied Waiver. Mortgagee shall not be deemed to have modified or
waived any of its rights or remedies hereunder unless such modification or
waiver is in writing and signed by Mortgagee, and then only to the extent
specifically set forth therein. A waiver in one event shall not be construed as
continuing or as a waiver of or bar to such right or remedy on a subsequent
event.

     9.5. Partial Invalidity. The invalidity or unenforceability of any one or
more provisions of this Mortgage shall not render any other provision invalid or
unenforceable. In lieu of any invalid or unenforceable provision, there shall be
added automatically a valid and enforceable provision as similar in terms to
such invalid or unenforceable provision as may be possible.

                                     Page 13

<PAGE>

     9.6. Binding Effect. The covenants, conditions, waivers, releases and
agreements contained in this Mortgage shall bind, and the benefits thereof shall
inure to, the parties hereto and their respective heirs, executors,
administrators, successors and assigns and are intended and shall be held to be
real covenants running with the land; provided, however, that, except in
connection with a transfer expressly permitted by the Loan Agreement or
consented to in writing by Mortgagee, this Mortgage cannot be assigned by
Mortgagor without the prior written consent of Mortgagee, and any such
assignment or attempted assignment by Mortgagor shall be void and of no effect
with respect to Mortgagee.

     9.7. Modifications. This Mortgage may not be supplemented, extended,
modified or terminated except by an agreement in writing signed by the party
against whom enforcement of any waiver, change, modification or discharge is
sought.

     9.8.  Governing Law. This Mortgage shall be governed, construed,
interpreted and enforced in accordance with the laws of the Commonwealth of
Pennsylvania, without regard to principles of conflicts of law, except as to
matters relating to the creation, perfection and enforcement of the liens on and
security interests in the Property (including, without limitation, requests for
injunctive relief or appointment of a receiver) which shall be governed by the
laws of the state where the Property is located.

     9.9.  Non-Merger. In the event Mortgagee shall acquire title to the
Property by conveyance from Mortgagor or as a result of foreclosure, this
Mortgage shall not merge in the fee estate of the Property but shall remain and
continue as an existing and enforceable lien for the Liabilities secured hereby
until the same shall be released of record by Mortgagee in writing.

10.  STATE SPECIFIC PROVISIONS

     10.1. Principles of Construction. In the event of any inconsistencies
between the terms and conditions of this Article and the other terms and
conditions of this Mortgage, the terms and conditions of this Article shall
control and be binding.

     10.2. Fixture Filing. Mortgagor covenants and agrees that the filing of
this Mortgage in the Official Records of the County where the Property is
located shall also operate from the date of such filing as a fixture filing in
accordance with Section 9-502 of the Illinois Code.

     10.3. Insurance. Mortgagor is hereby notified pursuant to 815 ILCS 180/1
et. seq. as follows:

           Unless Mortgagor provided Mortgagee with evidence of the insurance
coverage required by this Mortgage, Mortgagee may purchase insurance at
Mortgagor's expense to protect Mortgagee's interests in the collateral. This
insurance may, but need not, protect Mortgagor's interests. The coverage that is
purchased may not pay any claim that Mortgagor asserts or any claim that is made
against Mortgagor in connection with the collateral. Mortgagor may later cancel
any insurance purchased hereunder, but only after providing Mortgagee with
evidence that the insurance required under Section 2.3 of this Mortgage has been
purchased. If Mortgagee purchases insurance for the collateral, Mortgagor will
be responsible for the costs of that insurance, including interest and any other
charges imposed in connection with the placement of the insurance, until the
effective date of the cancellation or expiration of the insurance. The costs of
the insurance may be added to the total Liabilities. Notwithstanding the
foregoing, in the event that Mortgagor fails to maintain insurance in accordance
with Section 2.3. of this Mortgage, and Mortgagee elects to obtain insurance to
protect its interests hereunder, Mortgagee may obtain insurance in any amount
and of any type Mortgagee deems appropriate to protect Mortgagee's interest only
and Mortgagee shall have no duty or obligation to Mortgagor to maintain
insurance in any

                                     Page 14

<PAGE>

greater amount or of any other type for the benefit of Mortgagor. All insurance
premiums incurred or paid by Mortgagee shall be at Mortgagor's sole cost and
expense in accordance with Section 1 hereof. Mortgagee's election to obtain
insurance shall not be deemed to waive any Event of Default (as hereinafter
defined) hereunder.

     10.4. Statutory Construction. Mortgagor, on behalf of itself and all
persons now or hereafter interested in the Property, voluntarily and knowingly
hereby: acknowledges that the transaction of which this Mortgage is a part is a
transaction which does not include either agricultural real estate (as defined
in the Illinois Mortgage Foreclosure Law, Illinois Compiled Statutes ("ILCS")
Chapter 735, Section 5/15-1101 et seq., herein the "Act"), or residential real
estate (as defined in the Act).

     10.5. Compliance with Mortgage Foreclosure Law.

           (a)  If any provision of this Mortgage is inconsistent with any
applicable provision of the Act (as defined above), the provisions of the Act
shall take precedence over the provisions of this Mortgage, but shall not
invalidate or render unenforceable any other provision of this Mortgage that can
fairly be construed in a manner consistent with the Act.

           (b)  Without in any way limiting or restricting any of the
Mortgagee's rights, remedies, powers and authorities under this Mortgage, and in
addition to all of such rights, remedies, powers, and authorities, Mortgagee
shall also have and may exercise any and all rights, remedies, powers and
authorities which the holder of a mortgage is permitted to have or exercise
under the provisions of the Act, as the same may be amended from time to time.
If any provision of this Mortgage shall grant to Mortgagee any rights, remedies,
powers or authorities upon default of Mortgagor which are more limited than the
rights that would otherwise be vested in Mortgagee under the Act in the absence
of said provision, Mortgagee shall be vested with all of the rights, remedies,
powers and authorities granted in the Act to the fullest extent permitted by
law.

           (c)  Without limiting the generality of the foregoing, all expenses
incurred by Mortgagee, to the extent reimbursable, under Sections 5/15-1510,
5/15-1512, or any other provision of the Act, whether incurred before or after
any decree or judgment of foreclosure, and whether or not enumerated in any
other provision of this Mortgage, shall be added to the indebtedness secured by
this Mortgage and by the judgment of foreclosure.

     10.6. Business Loan Mortgagor stipulates, represents, warrants, affirms and
agrees that each of the loans and other credit obligations secured hereby are
constitute a "business loan" within the meaning of Sections 205/4(a) or (c) of
Chapter 815 of the ILCS, as amended.

     10.7. Mortgagee in Possession. In addition to any provision of this
Mortgage authorizing Mortgagee to take or be placed in possession of the
Property, or for the appointment of a receiver, Mortgagee shall have the right,
in accordance with Sections 15-1701 and 15-1702 of the Act, to be placed in
possession Property or at its request to have a receiver appointed, and such
receiver, or Mortgagee, if and when placed in possession, shall have, in
addition to any other powers provided in this Mortgage, all powers, immunities,
and duties as provided for in this Sections 15-1701 and 15-1703 of the Act.

     10.8. Protective Advances.

                (i)   All advances, disbursements and expenditures made by
Mortgagee before and during a foreclosure of this Mortgage, and before and after
judgment of foreclosure therein, and at any time prior to sale of the Property,
and, where applicable, after sale of the Property, and during the pendency of
any related proceedings, for the following purposes, in addition to those
otherwise

                                     Page 15

<PAGE>

authorized by this Mortgage or by the Act (collectively "Protective Advances")
shall have the benefit of all applicable provisions of the Act, including those
provisions of the Act hereinbelow referred to:

                      (a) all advances by Mortgagee in accordance with the terms
of this Mortgage to: (1) preserve or maintain, repair, restore or rebuild the
Improvements upon the Property; (2) preserve the lien of this Mortgage or the
priority thereof; or (3) enforce this Mortgage, as referred to in Subsection
(b)(5) of Section 15-1302 of the Act;

                      (b) payments by Mortgagee of: (1) when due installments of
principal, interest or other obligations in accordance with the terms of any
prior lien or encumbrance; (2) when due installments of real estate taxes and
assessments, general and special and all other taxes and assessments of any kind
or nature whatsoever which are assessed or imposed upon the Property or any part
thereof; (3) other obligations authorized by Mortgagee in accordance with the
terms of this Mortgage; or (4) with court approval, any other amounts in
connection with other liens, encumbrances or interests reasonably necessary to
preserve the status of title, as referred to in Section 15-1505 of the Act;

                      (c) advances by Mortgagee in settlement or compromise of
any claims asserted by claimants under any prior liens;

                      (d) reasonable attorneys' fees and other costs incurred:
(1) in connection with the foreclosure of this Mortgage as referred to in
Sections 15-1504(d)(2) and 15-1510 of the Act; (2) in connection with any
action, suit or proceeding brought by or against Mortgagee for the enforcement
of this Mortgage or arising from the interest of Mortgagee hereunder; or (3) in
the preparation for the commencement or defense of any such foreclosure or other
action related to this Mortgage or the Property;

                      (e) Mortgagee's reasonable fees and costs, including
attorneys' fees, arising between the entry of judgment of foreclosure and the
confirmation hearing as referred to in Subsection (b)(1) of Section 15-1508 of
the Act;

                      (f) expenses deductible from proceeds of sale as referred
to in subsections (a) and (b) of Section 15-1512 of the Act; and

                      (g) expenses incurred and expenditures made by Mortgagee
for any one or more of the following: (1) if the Property or any portion thereof
constitutes one or more units under a condominium declaration, assessments
imposed upon the unit owner thereof which are required to be paid; (2) if
Mortgagee's interest in the Property is a leasehold estate under a lease or
sublease, rentals or other payments required to be made by the lessee under the
terms of the lease or sublease; (3) premiums for casualty and liability
insurance paid by Mortgagee whether or not Mortgagee or a receiver is in
possession, if reasonably required, in reasonable amounts, and all renewals
thereof, without regard to the limitation to maintaining of existing insurance
in effect at the time any receiver or Mortgagee takes possession of the
Mortgaged Property imposed by Subsection (c)(1) of Section 15-1704 of the Act;
(4) repair or restoration of damage or destruction in excess of available
insurance proceeds or condemnation awards; (5) payments required or deemed by
Mortgagee to be for the benefit of the Property or required to be made by the
owner of the Property under any grant or declaration of easement, easement
agreement, agreement with any adjoining land owners or instruments creating
covenants or restrictions for the benefit of or affecting the Property; (6)
shared or common expense assessments payable to any association or corporation
in which the owner of the Property is a member in any way affecting the
Property; (7) if the loan secured hereby is a construction loan, costs incurred
by Mortgagee for demolition, preparation for and completion of construction, as
may be authorized by the applicable

                                     Page 16

<PAGE>

commitment, Trust Indenture or other agreement; (8) pursuant to any lease or
other agreement for occupancy of the Improvements for amounts required to be
paid by Mortgagor; and (9) if this Mortgage is insured, payments of FHA or
private mortgage insurance required to keep insurance in force;

                (ii)  All Protective Advances shall be additional Liabilities
secured by this Mortgage, and shall become immediately due and payable without
notice and with interest thereon from the date of the advance thereof, or if
later, the date of any notice required under the Mortgage, until paid at the
rate due and payable under the Loan Agreement after an Event of Default;

                (iii) This Mortgage shall be a lien for all Protective Advances
as to subsequent purchasers and judgment creditors from the time this Mortgage
is recorded pursuant to Subsection (b) of Section 15-1302 of the Act;

                (iv)  All Protective Advances shall, except to the extent, if
any, that any of the same is clearly contrary to or inconsistent with the
provisions of the Act, apply to and be included in:

                      (A)  determination of the amount of the Liabilities
secured by this Mortgage at any time;

                      (B)  the Liabilities found due and owing pursuant to this
Mortgage in the judgment of foreclosure and any subsequent supplemental
judgments, orders, adjudications or findings by the court of any additional
Liabilities becoming due after such entry of judgment, it being agreed that in
any foreclosure judgment, the court may reserve jurisdiction for such purpose;

                      (C)  if right of redemption has not been waived by
Mortgagor in this Mortgage, computation of amount required to redeem, pursuant
to Subsections (d)(2) and (e) of Section 15-1603 of the Act;

                      (D)  determination of the amount deductible from sale
proceeds pursuant to Section 15-1512 of the Act;

                      (E)  application of income in the hands of any receiver or
mortgagee in possession; and

                      (F)  computation of any deficiency judgment pursuant to
Subsections (b)(2) and (e) of Section 15-1508 and Section 15-1511 of the Act.

     10.9. Revolving Credit. The definition of "revolving credit" contained in
815 ILCS 205/4 of the Act, shall apply to this Mortgage. The lien of this
Mortgage shall secure all advances made pursuant to the terms of the Loan
Agreement as if such future advances were made on the date of execution of this
Mortgage. Although there may be no indebtedness outstanding on the Notes at the
time any such advance is made, the lien of this Mortgage, as to third persons
without actual notice thereof, shall be valid as to all such indebtedness and
future advances from the time this Mortgage is filed for record in the office of
the DuPage County Recorder of Deeds. The total amount of the indebtedness
evidenced by the Notes and secured by this Mortgage may increase or decrease
from time to time but the unpaid balance so secured at any one time shall not
exceed a maximum principal amount of Forty-Five Million and No/100 Dollars
($45,000,000.00) including interest thereon and any disbursements made for the
payment of taxes, special assessments, insurance or other disbursements made
pursuant to the terms of this Mortgage.

                                     Page 17

<PAGE>

     IN WITNESS WHEREOF, Mortgagor, intending to be legally bound, has duly
executed and delivered this Mortgage as of the day and year first above written.

                                        MORTGAGOR:
                                        WINCUP HOLDINGS, INC.

WITNESS:                                By: By: /s/ R. Radcliffe Hastings
                                                -------------------------
                                            Name: R. Radcliffe Hastings
                                            Title: Sr. Vice President

/s/ David R. Augustin
----------------------------------
Name: David R. Augustin

                                     Page 18

<PAGE>

COMMONWEALTH OF PENNSYLVANIA  )
                              )   SS.
COUNTY OF PHILADELPHIA        )

     I, CELESTE M. HEUBERGER, a notary public in and for said County, in the
State aforesaid, DO HEREBY CERTIFY that R. Radcliffe Hastings personally known
to me to be the Sr. Vice President of WINCUP HOLDINGS INC. and personally known
to me to be the same person whose name is subscribed to the foregoing
instrument, appeared before me this day in person and acknowledged that as such
Vice President, he signed and delivered the said instrument and caused the seal
of said entity be affixed thereto, pursuant to authority given to him by the
by-laws of such entity as his free and voluntary act, for the uses and purposes
therein set forth.

     GIVEN under my hand and official seal this 5th day of March, 2003.

                                        /s/ Celeste M. Heuberger
                                        -------------------------
                                              Notary Public

Commission expires _________, ____.               [SEAL]

              NOTARIAL SEAL
   CELESTE M. HEUBERGER, Notary Public
   City of Philadelphia, Phila. County
 My Commission Expires September 8, 2005

<PAGE>

                              [SCHEDULE A OMITTED]<PAGE>

                                                                   EXHIBIT 10.12

                    PLANT LEASE - 195 TAMAL VISTA BOULEVARD,
                            CORTE MADERA, CALIFORNIA

                           HUNT BROTHERS LEASING, LLC,
                                    Landlord

                 WINCUP HOLDINGS, INC., A DELAWARE CORPORATION,
                                     Tenant

                            Dated: February 10, 2003
                          Effective Date: July 1, 2004

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                      Page
                                                                      ----
<S>                                                                    <C>
1.  PARTIES ........................................................     1

2.  PREMISES .......................................................     1

3.  ACCEPTANCE .....................................................     1

4.  RENT ...........................................................     1
    4.1    Base Rent ...............................................     1
    4.2    CPI Increase ............................................     2
    4.3    Late Charge .............................................     2

5.  SECURITY DEPOSIT ...............................................     2

6.  TERM/OPTION TO EXTEND ..........................................     3

7.  USE, PURPOSE & COMPLIANCE WITH LAW .............................     3

8.  UTILITIES ......................................................     4

9.  ASSIGNMENT & SUBLETTING ........................................     4

10. CONDITION OF PREMISES & REPAIRS ................................     5

11. ALTERATIONS ....................................................     5

12. LIENS ..........................................................     6

13. SIGNS ..........................................................     6

14. RIGHT OF ENTRY .................................................     6

15. INDEMNIFICATION ................................................     7

16. INSURANCE ......................................................     8
    16.1   Liability Insurance .....................................     8
    16.2   Casualty Insurance ......................................     8
    16.3   Form of Policies ........................................     8
    16.4   Waiver of Subrogation ...................................     9

17. ESTOPPEL CERTIFICATE ...........................................     9

18. COMPLIANCE WITH LAWS ...........................................     9

19. DAMAGE BY FIRE OR OTHER CASUALTY ...............................     9
</TABLE>

                                      -i-

<PAGE>

<TABLE>
<S>                                                              <C>
20.  CONDEMNATION .............................................  10

21.  INVOLUNTARY TERMINATION ..................................  11

22.  DEFAULT ..................................................  11

23.  ATTORNEY'S FEES ..........................................  13

24.  HOLDING OVER .............................................  13

25.  WAIVER ...................................................  13

26.  ABANDONMENT ..............................................  14

27.  PERSONAL PROPERTY, REAL PROPERTY, AND OTHER TAXES ........  14

28.  PLATS & RIDERS ...........................................  14

29.  SALE BY LANDLORD .........................................  14

30.  RIGHT OF LANDLORD TO PERFORM .............................  15

31.  SURRENDER OF PREMISES ....................................  15

32.  MORTGAGE REQUIREMENTS ....................................  15

33.  NOTICES ..................................................  16

34.  ENTIRE AGREEMENT .........................................  16

35.  CONSENT ..................................................  16

36.  ADDITIONAL PAYMENTS ......................................  16

37.  COVENANT OF QUIET ENJOYMENT ..............................  16

38.  ADDITIONAL TERMS AND CONDITIONS ..........................  17
     38.1  Environmental Inspection ...........................  17
     38.2  Financial Statements ...............................  17
     38.3  Brokers ............................................  17
     38.4  First Right of Negotiation to Purchase Building ....  17
</TABLE>

                                      -ii-

<PAGE>

                    PLANT LEASE - 195 TAMAL VISTA BOULEVARD,
                            CORTE MADERA, CALIFORNIA

                           HUNT BROTHERS LEASING, LLC,
                                    Landlord

                 WINCUP HOLDINGS, INC., A DELAWARE CORPORATION,
                                     Tenant

                            Dated: February 10, 2003
                          Effective Date: July 1, 2004

1.   PARTIES

     1.1  This Lease is entered into in the City of Corte Madera, County of
Marin, State of California, between HUNT BROTHERS LEASING, LLC ("Landlord"), and
WINCUP HOLDINGS, INC., A DELAWARE CORPORATION ("Tenant").

     1.2  Landlord and Tenant, as the assignee of WINCUP HOLDINGS, L.P., a
Delaware limited partnership, are parties to an existing lease dated May 1, 1997
covering the premises leased hereunder ("old lease").

     1.3  Landlord and Tenant wish to enter into this Lease to be effective
immediately after the expiration of the term of the old lease.

2.   PREMISES

     2.1  Landlord hereby leases to Tenant, and Tenant hires from Landlord,
under the terms and conditions hereinafter set forth, those certain premises
situated in the City of Corte Madera, California, commonly known as 195 Tamal
Vista Boulevard, consisting of approximately 40,880 square feet, and as more
fully described in Exhibit "A", attached hereto and made a part hereof (the
"premises").

     2.2  The "railroad siding" delineated on Exhibit "A" is not a portion of
the premises.

3.   ACCEPTANCE

     Tenant accepts the premises in their "as is" condition and state of repair
and except as otherwise expressly provided herein, Landlord shall not be
required to do any work thereto.

4.   RENT

     4.1  Base Rent. Tenant shall pay to Landlord as rent in advance on the
first day of each calendar month of the term of this Lease, without deduction,
offset, prior notice or demand, in lawful money of the United States the amount
Tenant will be obligated to pay as rent for the month of June, 2004 under the
terms of the old lease. The aforesaid amount shall be no less than

                                       -1-

<PAGE>

the sum of $37,069 (the rent payable for July, 2002) increased by the CPI
adjustments determined under the old lease as of July 1, 2003 and July 1, 2004
(hereinafter called "Base Rent"). The rent shall be paid at the address set out
after the name of the Landlord at the end of this Lease or such other address as
shall be designated in writing by Landlord. If the date of commencement or
expiration of the term of this Lease occurs on a day other than the first day of
a calendar month, the rent at the monthly rate shall be prorated based upon the
number of days of the term of this Lease in such month bears to the total number
of days in such month.

     4.2  CPI Increase. On July 1, 2005 and on each subsequent anniversary of
the commencement date of the term of this Lease, the Base Rent payable for the
upcoming year shall be increased to an amount equal to the product of the Base
Rent for July, 2004 determined under paragraph 4.1 above multiplied by a
fraction, the denominator of which shall be the Consumer Price Index (as
hereinafter defined) figure published for June, 2004, and the numerator of which
shall be the Consumer Price Index figure for June of the adjustment year
(provided that such fraction shall not in any event be less than 1). As used
herein, the term "Consumer Price Index" shall mean the United States Department
of Labor's Bureau of Labor Statistics' Consumer Price Index, All Urban
Consumers, All-Items, for the San Francisco-Oakland-San Jose area (1982-84=100),
or the successor of such index, or if no successor index is designated, then
such other index as Landlord reasonably shall designate. Should Landlord lack
sufficient data to make the determination specified herein on the date of any
such adjustment, Tenant shall continue to pay the monthly rent payable
immediately prior to such adjustment date. As soon as Landlord obtains the
necessary data, it shall determine the rent payable from and after such
adjustment date and shall notify Tenant of the adjustment in writing. Should the
monthly rent for the period following such adjustment date exceed the amount
previously paid by Tenant for such period, Tenant shall forthwith pay the
difference to Landlord.

     4.3  Late Charge. If Tenant shall fail to pay within ten (10) days from
when due and payable any rent or other amounts or charges which Tenant is
obligated to pay under this Lease, Tenant shall pay a late charge equal to six
percent (6%) of such amount that is due. Tenant acknowledges that any late
payments will cause Landlord to incur costs and expenses not contemplated under
the Lease, including, but not limited to, administrative and collection costs,
the exact amount of which is extremely difficult to fix. Therefore, Tenant
agrees that the late charge described herein represents a reasonable estimate of
such costs and expenses and is fair compensation to Landlord for the loss
suffered by such non-timely payment. Acceptance of any late charge will not
constitute a waiver of Tenant's default with respect to such non-payment by
Tenant or prevent Landlord from exercising any rights or remedies available to
Landlord under the Lease. In addition to the late charges described herein, any
payment made more than thirty (30) days after the due date shall also bear
interest from and after the expiration of such 30 day period, until paid, at the
rate of 1 1/2% per month.

5.   SECURITY DEPOSIT

     Tenant has deposited with Landlord under the old lease the sum of $30,699
to be held as security for Tenant's faithful performance of its obligations
under the old lease. Upon the effective date of this Lease, the security deposit
under the old lease shall be deemed deposited as security under this Lease.
Landlord and Tenant agree that the security deposit may be

                                       -2-

<PAGE>

commingled with funds of Landlord and Landlord shall have no obligation or
liability for payment of interest on such deposit. Tenant shall not mortgage,
assign, transfer, or encumber the security deposit and any attempt by Tenant to
do so shall be void, without force or effect and shall not be binding upon
Landlord.

     If Tenant fails to pay any amount when due and payable under the Lease, or
fails to perform any of the terms and conditions of the Lease, Landlord may
appropriate and apply or use all or any portion of the security deposit to cure
the default, and Landlord may so apply or use the deposit without prejudice to
any other remedy Landlord may have on account of Tenant's default or breach. If
Landlord so uses any of the security deposit, Tenant shall, within ten (10) days
after written demand therefor, restore the security deposit to the full amount
originally deposited; Tenant's failure to do so shall constitute an act of
default under the Lease. Within fifteen (15) days after the term of the Lease
has expired and Tenant has vacated the Premises, provided Tenant is not then in
default on any of its obligations hereunder, Landlord shall return the security
deposit to Tenant.

6.   TERM/OPTION TO EXTEND

     6.1  The term of this Lease shall be for a period of six (6) years
commencing on July 1, 2004, and terminating on June 30, 2010.

     6.2  Tenant shall have an option to extend the term of this Lease for a
period of three (3) years which, if duly exercised, would extend the term from
July 1, 2010 to June 30, 2013. Provided that no event of default as defined in
paragraph 22 is then continuing , then if Tenant wishes to exercise its option
it must give written notice of exercise to Landlord no earlier than July 1, 2008
and no later than June 30, 2009, which dates shall be strictly enforced. The
option shall lapse and have no further force or effect if not duly and timely
executed as provided herein. If due exercise of the foregoing option is given,
then all of the terms and conditions of the Lease, including rent adjustments,
shall be applicable as of July 1, 2010 and each year thereafter in accordance
with the terms and conditions of this Lease. Notwithstanding any provision
herein to the contrary, the option will have no force or effect unless Tenant
also exercises a similar option in both leases between Tenant and Landlord for
the premises at 195 Tamal Vista Boulevard and 205 Tamal Vista Boulevard, Corte
Madera, California and either both leases are extended or neither may be
extended.

7.   USE, PURPOSE & COMPLIANCE WITH LAW

     7.1  Tenant shall use and occupy the premises during the term for the
production, printing and handling of cups, containers, lids, and other related
products and for general office purposes, and all uses reasonably incidental
thereto, and for no other purpose without the prior written consent of Landlord.
Tenant shall not use or permit the premises or any part thereof to be used for
any purpose other than the purpose for which the premises are leased.

     7.2  No use shall be made or permitted to be made of the premises or acts
done by Tenant which will increase the existing rate of insurance on the
premises or cause the cancellation of any insurance policy covering the premises
or any part thereof. If any act on the part of Tenant or use of the premises by
Tenant shall cause any increase of Landlord's insurance,

                                       -3-

<PAGE>

such additional expense shall be paid by Tenant to Landlord upon demand. Tenant
shall not sell or permit to be kept, used or sold in or about the premises any
article which may be prohibited by the standard form of fire insurance policies.

     7.3  Tenant shall not commit or suffer to be committed any waste upon the
premises or any public or private nuisance. Tenant shall not use the premises or
permit the premises to be used in whole or in part for any purpose or use that
is in violation of any of the laws, ordinances, regulations or rules of any
public authority or organization at any time. A judgment of any court of
competent jurisdiction or the admission by Tenant in any action or proceeding
against Tenant that Tenant has violated such laws, ordinances, regulations or
rules in the use of the premises shall be deemed to be a conclusive
determination of the fact as between Landlord and Tenant.

8.   UTILITIES

     Tenant shall pay for all water, gas, heat, light, power, telephone service,
sewer, garbage and other services or utilities supplied to the premises, whether
or not separately metered and whether or not billed to Landlord or Tenant.

9.   ASSIGNMENT & SUBLETTING

     9.1  Tenant shall not assign its interest in this Lease without the prior
written consent of Landlord, which consent Landlord may withhold in its sole,
arbitrary and absolute discretion.

     9.2  Tenant shall not sublet the premises or any part thereof, without the
prior written consent of Landlord, which consent shall not be unreasonably
withheld; provided, however, that in all events, any such subletting shall
comply with each and every one of the following standards: (i) all rent and
other sums payable under this Lease must continue to be paid directly to
Landlord by Tenant, notwithstanding any such subletting; (ii) all insurance
coverage provided by Tenant hereunder shall not be adversely affected, or
changed, as a result of any such subletting; (iii) the subtenant's use of the
premises shall not be inappropriate or have any adverse impact on the premises,
all as determined by Landlord in its sole discretion; (iv) the subtenant must
have adequate financial resources, and have a good business reputation, all as
determined by Landlord in its reasonable discretion; and (v) any such subtenant
must otherwise meet the reasonable requirements of Landlord.

     9.3  No consent to any assignment of this Lease, or any subletting of the
premises, shall be deemed to be a consent to any subsequent assignment of this
Lease or to any subletting of the premises. Any such assignment or subletting
shall be void and at the option of Landlord shall terminate this Lease.

     9.4  No consent by Landlord to any assignment of this Lease, or any
subletting of the premises, shall relieve Tenant of any obligation to be
performed by Tenant under this Lease, whether arising before or after the
assignment or subletting.

     9.5  Tenant shall reimburse Landlord on demand for all costs, expenses, and
attorneys fees, incurred by Landlord in reviewing any proposal by Tenant to
assign this Lease or sublet all or any portion of the premises.

                                       -4-

<PAGE>

10.  CONDITION OF PREMISES & REPAIRS

     10.1 Landlord agrees to maintain and repair the roof, sidewalls and
foundation (including the structural integrity) of the premises. Landlord also
agrees to be responsible for the replacement, but not for the maintenance or
repair, of HVAC systems not subject to removal by Tenant at the expiration of
this Lease, at such times as said systems reach the end of their useful life.
Landlord shall not be responsible for the maintenance or repair of the interior
of the premises or any other part thereof except as set forth herein. Any
expense incurred in connection with the remodeling, repainting, altering or
redecorating of the premises shall be at the expense of and shall be paid for by
Tenant.

     10.2 Tenant shall be deemed to have agreed by remaining in possession that
the premises are in good order, condition and repair. Tenant shall, at Tenant's
sole cost and expense, keep and maintain the premises and appurtenances and
every part thereof (except that portion which Landlord has expressly agreed to
repair) including, but not limited to, the windows, skylights, parking areas,
sidewalks, landscaping, and the interior of the premises, in good and sanitary
order, condition and repair. Further, Tenant shall, at Tenant's sole cost and
expense, keep and maintain the heating, ventilating and air conditioning
equipment in good operating order and condition during the term of this Lease
and shall provide regular maintenance thereto by a qualified serviceman. Nothing
herein shall be construed as requiring Tenant to repair any damage caused by any
act of God, war, riot or casualty, excepting, however, damage attributable to
the negligence or intentional act or omission of Tenant or to Tenant's agents,
servants, employees or invitees. Tenant further agrees to give up and surrender
the premises and every part thereof to Landlord at the termination of the term
of this Lease fully maintained and in good order and repair, reasonable wear and
tear excepted.

11.  ALTERATIONS

     11.1 Tenant shall not make or suffer to be made any alterations or
improvements to or of the premises or any part thereof without the written
consent of Landlord being first had and obtained. Any alterations, additions, or
improvements to or of the premises, including without limitation any partitions
(floor to ceiling), and all wall to wall installed carpeting, shall at once
become a part of the realty and belong to Landlord. Movable furniture, equipment
and trade fixtures shall remain the property of Tenant.

     11.2 If Landlord consents to the making of any alterations, additions or
improvements to the premises by Tenant, the same shall be made by Tenant at
Tenant's sole cost and expense and any contractor or person elected by Tenant to
make the same must first be approved of in writing by Landlord. Upon the
expiration or sooner termination of the term, Tenant, upon demand by Landlord,
at Tenant's sole cost and expense, forthwith and with all due diligence shall
remove any alterations, additions or improvements made to the premises by
Handi-Kup Company, James River Paper Co., Inc., WinCup Holdings, L.P. or Tenant
and related to the operation of their business including, but not limited to,
plastic bead storage tanks, enclosed surface mounted oil storage tanks, outside
heat exchangers and cooling towers, roof mounted pollution control equipment
related to boiler emissions, railroad loading dock, and other external
facilities specific to Tenant's operations and repair any damage to the premises
caused by such

                                       -5-

<PAGE>

removal, and shall return said premises to Landlord in good condition and
repair, reasonable wear and tear excepted.

12.  LIENS

     Tenant shall keep the premises and building of which the premises are a
part free and clear from any liens from persons claiming by or through Tenant
and shall indemnify, hold harmless and defend Landlord from any liens and
encumbrances arising out of any work performed or material furnished by or at
the direction of Tenant. In the event any lien is filed, Tenant shall do all
acts necessary to discharge any lien within twenty (20) days of filing, or if
Tenant desires to contest any lien, then Tenant shall deposit with Landlord such
security as Landlord shall demand to insure the payment of the lien claim or
procure and record a lien release bond issued by a corporation authorized to
issue surety bonds in California in an amount equal to one and one-half times
the amount of the claim of lien. The bond shall meet the requirements of
California Civil Code Section 3143 and shall provide for the payment of any sums
that the claimant may recover on the claim (together with costs of suit, if it
recovers said costs in the action). In the event Tenant shall fail to pay any
lien claim when due or shall fail to provide the deposit or other security to
Landlord, then Landlord shall have the right to expend all sums necessary to
discharge the lien claim, and Tenant shall pay additional rental, when the next
rental payment is due, all sums expended by Landlord in discharging any lien,
including attorney's fees and costs.

13.  SIGNS

     Except for any signs presently located on the premises, Tenant shall not
place or permit to be placed in, upon, about or outside the premises any signs
without the prior written consent of Landlord.

14.  RIGHT OF ENTRY

     14.1 Landlord and its agents shall have the right at any reasonable time
upon giving written notice to Tenant (which notice shall not be necessary in
case of an emergency) to enter upon the premises so long as it does not
interfere with the business activities of Tenant on the premises, for the
purpose of inspection, serving or posting notices, maintaining the premises,
making any necessary repairs, alterations or additions to any portion of the
premises (including the erection and maintenance of scaffolding, partitions and
repair of equipment as shall be required), complying with the laws, ordinances
and regulations, protecting the premises, or for any other lawful purpose,
including showing the premises to prospective purchasers or tenants and placing
on the premises usual "for rent" or "for lease" signs during the last nine (9)
months of the term.

     14.2 Tenant hereby waives any claim for damages for any injury or
inconvenience to or interference with Tenant's business, any loss of occupancy
or quiet enjoyment of the premises, and other loss occasioned by such entry
unless caused by Landlord's gross negligence or willful misconduct. For each of
the aforesaid purposes, Landlord shall at all times have and retain a key with
which to unlock all of the doors in, upon and about the premises, excluding
Tenant's vaults and safes, and Landlord shall have the right to use any and all
means which Landlord may deem

                                       -6-

<PAGE>

proper to open said doors in an emergency in order to obtain entry to the
premises, and any entry to the premises obtained by Landlord by any of said
means, or otherwise, shall not under any circumstances be construed or deemed to
be a forcible or unlawful entry into or detainer of the premises or an eviction
of Tenant from the premises or any portion thereof.

15.  INDEMNIFICATION

     15.1 Landlord shall be free of all liabilities and claims for damage by
reason of injury or death to any person or persons, including Tenant, or
property of any kind whatsoever and to whomsoever belonging, including Tenant,
from any cause or causes whatsoever, except for any liability and claim arising
out of the gross negligence or intentional misconduct of Landlord, its agents or
servants, while in, upon, or connected in any way with the premises, during the
term of this Lease or any extension or renewal thereof, or any occupancy
hereunder, and Tenant hereby agrees to indemnify, save harmless and defend
Landlord from all liability, damages, loss, costs and obligations, including
court costs and counsel fees, on account of or arising out of or alleged to have
arisen out of, directly or indirectly, any such injuries, death or losses,
however occurring, unless the same shall have been caused by or result from the
gross negligence or intentional misconduct of Landlord, its agents or servants.

     15.2 Tenant covenants and agrees to comply with all laws as hereinafter
defined relating to the storage, use, discharge and disposal of hazardous
materials on or about the premises. For purposes of this section, "hazardous
material" means and includes any air pollution, toxic or hazardous substance or
waste, or ground or ground water contamination, as defined in, or for purposes
of, any federal, state, or local statute, law, ordinance, code, rule,
regulation, order, or decree, as now or at any time hereafter in effect,
regulating, relating to, or imposing liability or standards of conduct
concerning any air quality or any toxic or hazardous substance or waste
(hereinafter collectively referred to "laws"), including hazardous material
which must be removed or remediated prior to land development or for health or
safety reasons.

          In the event Landlord or Tenant, during the term hereof, receives an
order or notification from any governmental or regulatory entity, or without an
order or notification otherwise becomes aware of the existence of a discharge or
release or threatened discharge or release of any hazardous material during the
lease term or any extension, in, on, or about the premises, Tenant, at its sole
cost and expense, shall immediately take such action as Landlord or the
applicable governmental or regulatory entity may deem appropriate or necessary
to prevent any threatened discharge or release or to remediate any discharge or
release of hazardous materials.

          Tenant shall indemnify, defend, and hold Landlord harmless from and
against any and all direct and indirect, actual and consequential, damages,
costs, expenses, losses, demands, claims, liabilities, judgments, causes of
action, proceedings or hearings, including all reasonable attorneys' fees and
costs of investigation which arise from the use, disposal, emission, discharge,
injection, spill, escape, leak, release, or threatened release of hazardous
materials on or about the premises, including air, soil and water during the
term hereof or any extension thereof.

          As between Landlord and Tenant, the provisions of this section shall
survive the expiration or earlier termination of this Lease, including any lease
extension.

                                       -7-

<PAGE>

16.  INSURANCE

     16.1 Liability Insurance. Tenant shall procure at its sole cost and expense
and keep in full force and effect throughout the term of this Lease, Commercial
General Liability insurance protecting Landlord and Tenant, and covering the use
and occupancy of the premises and all areas adjacent thereto, and the business
operated by Tenant therein. Such insurance (i) shall include broad form
contractual liability insurance coverage insuring all of Tenant's indemnity
obligations under this Lease, (ii) shall have a minimum combined single limit of
liability (including umbrella coverage) of at least Ten Million Dollars
($10,000,000), (iii) shall be written to apply to all bodily injury, property
damage, personal injury and other loss, however occasioned, occurring during the
policy term, (iv) shall be endorsed to add Landlord as an additional insured,
and (v) shall provide that such coverage is primary and that any insurance
maintained by Landlord is excess insurance only. Such insurance shall also
contain endorsements: (i) deleting any employee exclusion on personal injury
coverage; (ii) including employees as additional insureds; and (iii) providing
coverage for employer's automobile non-ownership liability. Tenant shall also
maintain Workers' Compensation insurance in accordance with California law, and
employers liability insurance with a limit no less than $1,000,000 per employee
and $1,000,000 per occurrence. The limits of said Commercial General Liability
insurance policy shall not limit the liability of Tenant nor relieve Tenant of
any obligations of Tenant otherwise existing under this Lease. If at any time
during the term, the amount or coverage of insurance which Tenant is required to
carry under this paragraph 16.1 is, in Landlord's reasonable judgment,
materially less than the amount or type of insurance coverage typically carried
by owners or lessees of properties which are similar to and operated for similar
purposes as the premises, Landlord shall have the right to require Tenant to
increase the amount or change the types of insurance coverage required under
this paragraph.

     16.2 Casualty Insurance. Tenant further agrees to procure at its sole cost
and expense and keep in full force and effect throughout the term of this Lease,
a policy of "all risk" casualty insurance (ISO Form CP1030 or such other form as
is reasonably acceptable to Landlord), in the name of Landlord, with loss
payable to Landlord, insuring against loss or damage to the premises. Such
insurance shall be for the full replacement cost thereof, as agreed to by
Landlord and adjusted from time to time to reflect increased replacement costs,
and shall insure against all risks of direct physical loss or damage (except the
peril of earthquake or terrorism), including coverage for any additional costs
resulting from debris removal and coverage for the enforcement of any ordinance
or law regulating the reconstruction or replacement of the premises. Said policy
shall also contain an agreed valuation provision in lieu of any co-insurance
clause, and shall include coverage for the benefit of Landlord insuring the loss
of the full rental and other charges payable under this Lease for not less than
one year. With respect to any deductibles, it is specifically agreed that Tenant
shall be responsible for paying all permitted deductibles if a casualty occurs,
unless such casualty resulted from or was caused by the gross negligence or
intentional misconduct of Landlord or its agents or servants.

     16.3 Form of Policies. All insurance policies required to be carried under
this Lease shall be written by companies (i) rated A or better in "Best's
Insurance Guide" and (ii) authorized to do business in California, and shall
name any lenders or parties designated by Landlord as additional insureds. Any
deductible amounts under any insurance policies required hereunder

                                       -8-

<PAGE>

shall be subject to Landlord's prior written approval. Tenant shall deliver to
Landlord on or before the Commencement Date, and thereafter at least thirty (30)
days before the expiration date of expiring policies, or whenever there is a
change of insurers or insurance coverage, and at such other times as Landlord
may reasonably request, certified complete copies of its insurance policies, or,
if acceptable to Landlord, a certificate evidencing the same issued by the
insurer thereunder; and, in the event Tenant shall fail to procure such
insurance, or to deliver such policies or certificates to Landlord in a prompt
and timely manner, Landlord may, at its option and in addition to Landlord's
other remedies in the event of a default by Tenant hereunder, procure the same
for the account of Tenant, and the cost thereof shall be paid to Landlord as
additional rent.

          Any policy required to be maintained by Tenant under this Lease may be
maintained under a so-called "blanket policy" insuring other parties and/or
other locations, so long as the amount of insurance and type of coverage
required to be provided hereunder is not thereby diminished, changed or
adversely affected.

     16.4 Waiver of Subrogation. Tenant and Landlord hereby release each other
and their respective officers, agents and employees from any and all claims and
demands for loss, damage, expense or injury to the premises, as well as the
furnishings, fixtures and equipment located on the premises, which is caused by
or results from events or happenings which are the subject of casualty insurance
carried by the respective parties in force at the time of any such loss.

17.  ESTOPPEL CERTIFICATE

     Tenant and Landlord shall execute, acknowledge and deliver to the other
party at any time within ten (10) days after request by such party, a statement
in writing certifying, if such be the case, that this Lease is unmodified and in
full force and effect (or if there have been modifications that the same is in
full force and effect as modified), the date of commencement of this Lease, the
dates on which rent has been paid, and such other information as the requesting
party shall reasonably request.

18.  COMPLIANCE WITH LAWS

     Tenant, at Tenant's sole cost, shall comply with all laws, ordinances,
orders and regulations of all governmental authorities with respect to the use
and occupation of the premises, including but not limited to such items not
related to Tenant's particular use thereof. A judgment of any court of competent
jurisdiction or the admission by Tenant in any action or proceeding against
Tenant that Tenant has violated any such laws, ordinances, orders or
regulations, shall be deemed to be conclusive as to Landlord and Tenant.

19.  DAMAGE BY FIRE OR OTHER CASUALTY

     19.1 Except as otherwise provided herein, in the event of any damage
causing a partial or total destruction of the premises during the term of this
Lease from any cause that is an insured risk and provided the repairs can be
made under the applicable laws and regulations of governmental authorities,
Landlord shall repair said damage promptly; provided, however, that if such
destruction or damage is "major destruction or damage," Landlord may terminate
this

                                       -9-

<PAGE>

Lease on 90 days' notice to Tenant. "Major destruction or damage" hereunder
shall refer to destruction of or damage to the premises, the reasonable cost of
repair of which exceeds two hundred fifty thousand dollars ($250,000). During
any repair or restoration this Lease shall remain in full force and effect and
the rent payable under this Lease shall only be abated to the extent such rent
abatements are covered by insurance proceeds.

     19.2 If the cause of such damage is not an insured risk, was not caused by
the gross negligence or intentional misconduct of Landlord, its agents or
servants, and the cost of repair is less than or equal to One Hundred Fifty
Thousand Dollars ($150,000.00) and provided such repairs can be made under the
applicable laws and regulations of governmental authorities, Tenant shall pay to
Landlord the cost of repairing such damage and Landlord shall cause such repair
to be made. If the cause of such damage is not an insured risk, was not caused
by the gross negligence or intentional misconduct of Landlord, its agents or
servants, and the cost of repair is more than One Hundred Fifty Thousand Dollars
($150,000.00), Tenant may elect not to pay the cost to repair such damage by
giving notice at any time within thirty (30) working days after the date of such
damage and terminating this Lease as of a date to be specified in such notice,
which date shall not be less than thirty (30) nor more than sixty (60) working
days after the giving of such notice; provided, however, if Landlord elects to
pay the additional cost over $150,000 to complete the repairs, Landlord shall
proceed to make the repairs and the Lease shall remain in full force and effect.
In the event of the giving of such notice of termination, this Lease and all
interest of Tenant in the premises shall terminate on the date so specified in
such notice, and the rent shall be paid up to date on such termination. Landlord
agrees to refund to Tenant any rent theretofore paid for any period of time
subsequent to such date. Landlord shall not be required to repair any injury or
damage by fire or other cause to the property of Tenant, or to make any repairs
to or replacements of any panelings, decorations, railing, floor coverings or
any improvements installed on the premises by Tenant. Landlord shall be
responsible for repairing all uninsured damage that was caused by or resulted
from the gross negligence or intentional misconduct of Landlord, its agents or
servants.

     19.3 All proceeds from any insurance policy or policies referred to in
paragraph 16 hereof, and any amounts agreed to as deductibles thereunder,
payable pursuant to this paragraph 19 shall be paid by Tenant to Landlord within
ten (10) days following the receipt of such proceeds by Tenant and before
Landlord is required to make any of the repairs.

     19.4 In respect of any damage or destruction which Landlord is obligated to
repair or may elect to repair under the terms of this paragraph, the provisions
of any statute or law permitting Tenant to terminate this Lease are waived by
Tenant, and Tenant specifically waives the provisions of Sections 1932,
Subdivision 2, and 1933, Subdivision 4, of the Civil Code of California.

20.  CONDEMNATION

     20.1 If the whole or any part of the premises shall be taken for public or
quasi-public use by right of eminent domain, with or without litigation, or
transferred by agreement in connection with such public or quasi-public use,
this Lease, as to the part so taken or condemned or transferred, shall terminate
as to the date title shall vest in the condemnor and the rent payable

                                      -10-

<PAGE>

hereunder shall be adjusted so that Tenant shall be required to pay for the
remainder of the term only such portion of the rent as the area in the part
remaining after the taking or condemnation bears to the area of the entire
premises as of the date title shall vest in condemnor.

     20.2 Except as herein provided, all compensation of any form awarded upon
such condemnation or taking shall go to Landlord and Tenant shall have no claim
thereto, and Tenant hereby irrevocably assigns and transfers to Landlord any
right to compensation or damages to which Landlord may become entitled during
the term hereof by reason of the condemnation of all or part of the premises.
Notwithstanding the foregoing, Tenant reserves the right to file a separate
claim for moving expenses and any other compensation it is entitled to receive
as a result of such taking or condemnation and (i) which is not related to its
leasehold estate and (ii) does not reduce the compensation otherwise payable to
Landlord. Tenant shall have no claim against Landlord for the value of any
unexpired term of this Lease.

     20.3 In the event any such taking or condemnation shall materially
interfere with Tenant's use of the premises, Tenant, upon not less than 60 days'
written notice to Landlord, shall have the right to terminate this Lease and
rent shall be payable only to the date Tenant vacates the premises.

21.  INVOLUNTARY TERMINATION

     This Lease, at the option of Landlord and after the expiration of any
applicable cure period, shall immediately cease and terminate upon the happening
of any of the following events:

          (a) The filing of a petition for any proceeding under the Bankruptcy
Act or any amendment thereto by Tenant.

          (b) A finding or judgment of insolvency of Tenant which has become
final.

          (c) A general assignment for the benefit of creditors by Tenant.

          (d) The levying of a writ of execution on a substantial portion of the
assets of Tenant located on the premises, which is not discharged within sixty
(60) days after the date of said levying.

     Upon the happening of any such event and the expiration of the applicable
cure period, this Lease shall terminate five (5) days after written notice of
termination from Landlord to Tenant. In no event shall this Lease be assigned or
assignable by reason of any voluntary or involuntary bankruptcy proceedings nor
shall any rights or privileges hereunder be an asset of Tenant in any
bankruptcy, insolvency or reorganization proceedings.

22.  DEFAULT

     22.1 If (a) Tenant's interest or any part of his interest, in this Lease be
assigned or transferred, either voluntarily or by operation of law, except with
Landlord's consent, or as provided in paragraph 9, or (b) Tenant, after notice
fails to remedy any default (i) in the payment

                                      -11-

<PAGE>

of any sum due under this Lease for ten (10) days, or (ii) in the keeping of any
other term, covenant or condition of this Lease with all reasonable dispatch
(within thirty (30) days or such longer period as is reasonably necessary),
then, in addition to any other remedy Landlord may have by operation of law,
Landlord shall have the right, without any further demand or notice, either to
terminate Tenant's right to possession of the premises and thereby terminate
this Lease or to have this Lease continue in full force and effect with Tenant
at all times having the right to possession of the premises.

     22.2 (A) Should Landlord elect to terminate Tenant's right to possession of
the premises and terminate this Lease, then Landlord shall have the immediate
right of entry and may remove all persons and property from the premises. Such
property to be removed may be stored in a public warehouse or elsewhere at the
cost and for the account of Tenant. Upon such termination, Landlord, in addition
to any other rights and remedies, shall be entitled to recover from Tenant:

              (1) The worth at the time of award of the unpaid rent which had
been earned at the time of termination;

              (2) The worth at the time of award of the amount by which the
unpaid rent which would have been earned after termination until the time of
award exceeds the amount of such rental loss that Tenant proves could have been
reasonably avoided;

              (3) The worth at the time of award of the amount by which the
unpaid rent for the balance of the term after the time of award exceeds the
amount of such rental loss for such period that Tenant proves could be
reasonably avoided;

              (4) Any other amount necessary to compensate Landlord for all the
detriment proximately caused by Tenant's failure to perform his obligations
under this Lease, or which in the ordinary course of things would be likely to
result therefrom.

              Any proof by Tenant under Subparagraphs (2) or (3) of Subdivision
(a) of Section 1951.2 of the California Civil Code of the amount of rental loss
that could be reasonably avoided shall be made in the following manner: Landlord
and Tenant shall each select a licensed real estate broker in the business of
renting property of the same type and use as the premises and in the same
geographic vicinity and such two real estate brokers shall select a third
licensed real estate broker and the three licensed real estate brokers so
selected shall determine the amount of rental loss that could be reasonably
avoided for the balance of the term of this Lease after the time of award. The
decision of the majority of said licensed real estate brokers shall be final and
binding upon the parties hereto. As used herein, the term "time of award" shall
mean either the date upon which Tenant pays to Landlord the amount recoverable
by Landlord as hereinabove set forth or the date of entry of any determination,
order or judgment of any court or other legally constituted body, or of any
arbitrators determining the amount recoverable, whichever first occurs.

          (B) Should Landlord, following any breach or default of this
Lease by Tenant, elect to keep this Lease in full force and effect, with Tenant
retaining the right to possession of the premises (notwithstanding the fact that
Tenant may have abandoned the leased premises),

                                      -12-

<PAGE>

then Landlord, besides all other rights and remedies Landlord may have at law or
in equity, shall have the right to relet the premises, or any part of the
premises, as the agent and for the account of Tenant upon such terms and
conditions as Landlord may deem advisable. In such an event the rents received
on such reletting shall be applied first to the expenses of such reletting and
collection, including necessary renovation and alteration of the premises,
reasonable attorney's fees, any real estate commissions paid, and thereafter to
payment of all sums due or to become due Landlord under this Lease. If a
sufficient sum shall not be thus realized to pay such sums and other charges,
Tenant shall pay Landlord any deficiency monthly, notwithstanding Landlord may
have received rental in excess of the rental stipulated in this Lease in
previous or subsequent months. Landlord may bring an action therefore as such
monthly deficiency shall arise. Notwithstanding any such election to have this
Lease remain in full force and effect, Landlord may at any time thereafter elect
to terminate Tenant's right to possession of said premises and thereby terminate
this Lease for any previous breach or default which remains uncured, or for any
subsequent breach or default.

     22.3 The "worth at the time of award" of the amounts referred to in
subparagraphs (1) and (2) above is computed by allowing interest at the rate of
10% per annum. The worth at the time of award of the amount referred to in
subparagraph (3) above is computed by discounting such amount at the discount
rate of Federal Reserve Bank of San Francisco at the time of award, plus one
percent (1%).

23.  ATTORNEY'S FEES

     Tenant agrees that if Landlord is involuntarily made a defendant to any
litigation concerning this Lease or the premises by reason of any act or
omission of Tenant and not because of any act or omission of Landlord, then
Tenant shall hold harmless Landlord from all liability by reason thereof,
including reasonable attorney's fees incurred by Landlord, in such litigation
and all taxable court costs. If legal action shall be brought by either of the
parties hereto for the unlawful detainer of the premises, for the recovery of
any rent due under the provisions of this Lease, or because of any breach of any
term, covenant or provision hereof, the party prevailing in said action
(Landlord or Tenant as the case may be) shall be entitled to recover from the
party not prevailing costs of suit and a reasonable attorney's fee which shall
be fixed by the Judge of the Court.

24.  HOLDING OVER

     Any holding over after the expiration of the term of this Lease by Tenant
shall be deemed to be a tenancy from month to month upon the same terms and
conditions set forth herein, except that the monthly rent payable hereunder
pursuant to paragraph 4 shall be increased to 125% of such amount during any
such holding-over period, and adjusted as provided therein.

25.  WAIVER

     No covenant, term or condition or the breach thereof shall be deemed
waived, except by written consent of Landlord, and any waiver or the breach of
any covenant, term or condition shall not be deemed to be a waiver of any
preceding or succeeding breach of the same or any other covenant, term or
condition. Acceptance of all or any portion of rent at any time shall not

                                      -13-

<PAGE>

be deemed to be a waiver of any covenant, term or condition except as to the
rent payment accepted, regardless of Landlord's knowledge of such preceding
breach at the time of acceptance of such rent.

26.  ABANDONMENT

     Tenant shall not vacate or abandon the premises at any time during the term
hereof, and if Tenant shall abandon, vacate or surrender the premises, or be
dispossessed by process of law, or otherwise, any personal property belonging to
Tenant and left on the premises shall be deemed to be abandoned, at the option
of Landlord, except such property as may be mortgaged to Landlord.

27.  PERSONAL PROPERTY, REAL PROPERTY, AND OTHER TAXES

     27.1 Tenant shall pay, before delinquency any and all taxes levied or
assessed and which become payable during the term hereof upon Tenant's
equipment, furniture, fixtures and other personal property located in the
premises, including carpeting installed by Tenant even though said carpeting has
become part of the leased premises; and any and all taxes or increases therein
levied or assessed on Landlord or Tenant by virtue of alterations, additions or
improvements to the premises made by Tenant after the date hereof. In the event
said taxes are charged to or paid or payable by Landlord, then Tenant shall
reimburse Landlord for all of such taxes paid by Landlord.

     27.2 Tenant shall pay to Landlord, within thirty (30) days after receipt of
a bill therefor, all real property taxes, general and special assessments,
rates, charges, license fees, municipal liens, levys, excises, or imposts,
whether general or special, ordinary or extraordinary, of every kind (other than
inheritance, personal income or estate taxes) which may be levied, assessed,
charged, or imposed, or may become a lien or charge upon the premises, or upon
Tenant's estate hereby created, or upon Landlord by reason of its ownership of
the premises. Tenant's liability to pay any such real property taxes shall be
prorated on the basis of a 360-day year to account for any fractional period of
a fiscal tax year included in the term of this Lease.

28.  PLATS & RIDERS

     Clauses, plats and riders, if any, signed by Landlord and Tenant and
endorsed on or affixed to this Lease are a part hereof.

29.  SALE BY LANDLORD

     In the event of a sale or conveyance by Landlord of the premises, the same
shall operate to release Landlord from any liability for any of the covenants or
conditions, express or implied, herein contained in favor of Tenant arising
after the date of such sale or conveyance, and in such event Tenant agrees to
look solely to the responsibility of the successor in interest of Landlord in
and to this Lease. If any security be given by Tenant to secure the faithful
performance of all or any of the covenants of this Lease on the part of Tenant,
Landlord may transfer and/or deliver the security, as such, to the successor in
interest of Landlord, and thereupon Landlord shall be discharged from any
further liability in reference thereto.

                                      -14-

<PAGE>

30.  RIGHT OF LANDLORD TO PERFORM

     All covenants and agreements to be kept or 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, except as otherwise expressly
provided herein. 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 thirty
(30) days after notice thereof by Landlord, which notice may be waived in
Landlord's reasonable judgment in the event of an emergency-type situation,
Landlord may, but shall not be obligated to, and without waiving any default of
Tenant or releasing Tenant from any obligations of Tenant hereunder, 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 the Landlord and all necessary
incidental costs, together with interest thereon at 12% per annum from the date
of such payment by the Landlord, shall be paid to Landlord forthwith on demand,
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 rent.

31.  SURRENDER OF PREMISES

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

32.  MORTGAGE REQUIREMENTS

     Landlord represents to Tenant that on the date this Lease is executed, the
premises are not encumbered by or subject to any mortgages, deeds of trust, or
ground leases. This Lease shall, however, be subject and subordinate at all
times to all ground or underlying leases which may hereafter be executed
affecting the building and/or the land upon which the building is situated and
to the lien of any mortgages or deeds of trust in any amount or amounts
whatsoever hereafter placed on or against said building and/or land or on or
against the Landlord's interest or estate therein or on or against any ground or
underlying lease without the necessity of having further instruments on the part
of Tenant to effectuate such subordination. Notwithstanding the foregoing,
Tenant covenants and agrees to execute and deliver, upon demand, such further
reasonable instruments evidencing such subordination of this Lease to such
ground or underlying leases and to the lien of any such mortgages or deeds of
trust as may be required by Landlord. Tenant hereby irrevocably appoints
Landlord the attorney in fact of the Tenant to execute and deliver any such
instrument or instruments for or in the name of Tenant. In the event any
mortgagee shall elect to have this Lease a prior lien to its mortgage, then and
in such event, upon such mortgagee notifying the Tenant in writing to that
effect, this Lease shall have priority of the lien of such mortgage to the same
extent as if the same have been placed on record prior to such mortgage. In the
event of any sale, assignment or hypothecation of the building of which the
premises are a part, and/or of any leasehold interest therein by Landlord, if a
statement shall be required from Tenant as to offsets against the Landlord,
Tenant agrees to furnish said statement to the party demanding the same
accurately and promptly. In the event of termination of any

                                      -15-

<PAGE>

ground or underlying lease, or in the event of sale, foreclosure or exercise of
any power of sale under any mortgage or deed of trust superior to this Lease or
to which this Lease is subject or subordinate, Tenant covenants and agrees that
it will, upon request by the purchaser, attorn to the purchaser upon any
foreclosure or sale and recognize such purchaser as the Landlord under this
Lease, it being the intent hereof that if this Lease should be terminated by
such foreclosure or sale, it shall, upon request by the purchaser be reinstated
as a lease between the purchaser and the Tenant. Tenant, upon request of any
party in interest, shall execute such reasonable instrument or instruments as
shall be requested to carry out the requirements of this paragraph. Landlord
will obtain non-disturbance agreements from all parties to whose interest this
Lease may hereafter be subordinated.

33.  NOTICES

     All notices or demands of any kind required or desired to be given to
Landlord or Tenant hereunder shall be in writing and shall be deemed delivered
twenty-four (24) hours after the notice or demand is deposited in the United
States mail, postage prepaid, and addressed to Tenant at the address of the
premises, whether or not Tenant has departed therefrom, abandoned or vacated the
premises and as to Landlord at the address designated after the name of the
Landlord at the end of this Lease, or such other address as shall be designated
by either party in compliance with the provisions of this paragraph.

34.  ENTIRE AGREEMENT

     This Lease constitutes the entire agreement between Landlord and Tenant and
no promises or representations, express or implied, either written or oral, not
herein set forth shall be binding upon or inure to the benefit of Landlord or
Tenant. This Lease shall not be modified by any oral agreement, either express
or implied, and all modifications shall be in writing and signed by both
Landlord and Tenant.

35.  CONSENT

     Except as otherwise specifically set forth, whenever Landlord's consent
shall be required herein, such consent shall not be unreasonably withheld or
delayed.

36.  ADDITIONAL PAYMENTS

     Wherever Tenant is called upon to make additional payments under this Lease
in addition to those specified in paragraph 4, Landlord will deliver with the
invoice or bill therefor adequate detail showing Tenant's pro rata share.

37.  COVENANT OF QUIET ENJOYMENT

     Landlord covenants that Tenant will quietly and peaceably have, hold and
enjoy the premises in accordance with the terms of this Lease throughout the
term from any person or entity claiming by or through Landlord, so long as
Tenant is not in default hereunder.

                                      -16-

<PAGE>

38.  ADDITIONAL TERMS AND CONDITIONS

     38.1 Environmental Inspection. Tenant shall, at its sole expense, submit to
periodic inspections by Landlord or its agents, on reasonable notice, to assure
compliance by Tenant with all of the terms and conditions of the Lease,
including but not limited to, all laws, ordinances, and regulations applicable
to Tenant in its operation at the premises, and including, but not limited to,
those concerning environmental matters. In the event any "Phase 1" or equivalent
environmental inspection commissioned by Landlord shall disclose a possibility
of environmental contamination for which Tenant would be responsible, Tenant
shall (i) reimburse Landlord for the cost of such inspection, (ii) pay for such
additional inspections as may be necessary, and (iii) pay for all costs and
expenses as may be necessary to cause Tenant to comply with this paragraph and
paragraph 15.2. In the event any "Phase 1" or equivalent environmental
inspection concludes that Tenant is in compliance with its environmental
obligations under this Lease and that no further investigation or inspection is
required, the cost of such inspection shall be paid for by Landlord.

     38.2 Financial Statements. Tenant shall provide Landlord with its quarterly
financial statements, and audited annual financial statements, throughout the
term of this Lease. Said quarterly statements shall be delivered to Landlord
within thirty (30) days after the end of the applicable quarter and said audited
annual financial statements shall be delivered to Landlord within sixty (60)
days after the end of the applicable fiscal year.

     38.3 Brokers. Tenant represents and warrants that it has not dealt with any
broker or agent in connection with the leasing transaction described herein.
Tenant covenants and agrees to pay, hold harmless, and indemnify Landlord from
and against any and all costs, expenses or liabilities for any compensation,
commission and charges claimed by any broker or agent with respect to this Lease
or the negotiation hereof with whom Tenant had dealings.

     38.4 First Right of Negotiation to Purchase Building. Provided Tenant is
not then in default beyond any applicable notice or grace periods under this
Lease, Tenant shall have a first right of negotiation to purchase the building
in which the premises are located ("Building") during the Term of this Lease on
the terms and conditions set forth herein.

          In the event Landlord desires to sell the Building, either separately
or in combination with other properties owned by Landlord, Landlord shall notify
Tenant of such desire. Upon receiving such notice, Tenant shall have thirty (30)
days within which to negotiate with Landlord for the purchase of the Building
(or combination of Buildings) on such terms and conditions as are acceptable to
Landlord, and which may involve, among other things, Tenant cooperating with
Landlord so as to consummate the transaction as a like-kind exchange to
Landlord. In the event a written agreement for the purchase and sale is not
entered into within said thirty (30) day period, Tenant shall have no further
right of first negotiation (this paragraph thereafter being null, void and of no
further force or effect) and Landlord shall be entitled to sell the Building to
any other party on any other terms in order to allow Landlord to maximize its
return from its ownership of the Building. It is specifically understood and
agreed that Landlord may thereafter enter into transactions on terms and
conditions that are different than those proposed to or by Tenant without
incurring any liability or obligation to Tenant. This first right

                                      -17-

<PAGE>

of negotiation is intended solely to allow the parties an opportunity to
negotiate for the sale of the Building to Tenant and is not intended to restrict
the rights of either party in the event a final and binding agreement does not
result within the above-described thirty (30) day time period as a result of
negotiations initiated pursuant to this paragraph. Landlord and Tenant do,
however, agree that the above-referenced negotiations shall be conducted in good
faith and with due diligence.

     38.5 Old Lease. In the event that the old lease is terminated prior to its
current expiration date for any reason whatsoever, this Lease shall
automatically terminate as of such date and thereafter, neither party shall have
any further liability hereunder. It is understood and agreed that neither party
shall have any rights or obligations hereunder until the effective date of this
Lease.

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

LANDLORD                                          TENANT

HUNT BROTHERS LEASING, LLC                        WINCUP HOLDINGS, INC.,
                                                  A DELAWARE CORPORATION

By: /s/ [Signature Illegible]                     By: /s/ Michael V. Valenza
    --------------------------                        --------------------------
                                                      M. Valenza, S.V. President

Dated: Feb. 10, 2003

                                                  By: /s/ Caroline J. Williamson
                                                      --------------------------
                                                      C. Williamson, Secretary

                                                  Dated:_________________, 2003

Landlord's Address for Notice:

240 Tamal Vista, Suite 250
Corte Madera, CA 94925

                                      -18-

<PAGE>

                                    EXHIBIT A

                        [Description of Premises Omitted]

                                      -19-

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