Document:

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                                                                    Exhibit 10.7

                            DICK'S ACQUISITION CORP.

                           12% Subordinated Debenture

                                  May 1, 1986

$1,251,000.00
-------------

         DICK'S ACQUISITION CORP., a New York corporation (hereinafter called
the "Corporation") for value received hereby promises to pay to the order of
Richard J. Stack, at the office or agency of the corporation referred to
below, the principal sum of One Million Two Hundred Fifty One Thousand Dollars
($1,251,000.00), together with interest from the date of this Debenture at the
rate of twelve percent (12%) per annum in monthly installments of $13,774.59
commencing June 1, 1986 until May 1, 2006, when the entire unpaid principal
amount shall be due and payable, together with accrued interest thereon.

         Both principal and interest shall be payable in lawful money of the
United States of America to the holder hereof at the office or agency of the
Corporation referred to in Section 5. Any overdue installment hereof and the
entire unpaid principal amount after maturity (whether by acceleration or
otherwise) shall bear interest at the rate of 18% per annum until paid in full.

         1. This Debenture is issued to the holder in connection with that
certain Agreement of Merger between the Corporation and Dick's Clothing &
Sporting Goods of Binghamton, Inc. dated May 1, 1986.

<PAGE>

         2. This Debenture shall be registered in the name of Richard J. Stack
at the office or agency of the Corporation and such registration shall be noted
hereon by an officer or a duly authorized agent of the Corporation. After such
registration and notation, no transfer hereof shall be valid unless made at the
office or agency of the Corporation by the registered owner in person, or by his
duly authorized attorney, and similarly noted hereon. The Corporation may deem
and treat the registered owner hereof as the absolute owner hereof for all
purposes, whether or not this Debenture shall be overdue or in default, and the
Corporation shall be affected by any notice to the contrary.

         3. The Corporation may, at its option, at any time and from time to
time prior to maturity, prepay this Debenture either in whole or in part, at
the principal amount so to be prepaid, without premium, plus accrued interest
thereon to the date fixed for prepayment. For the purposes hereof, any purchase
by the Corporation of this Debenture from the owner thereof shall be deemed a
prepayment of such Debenture.

         4. The Corporation covenants and agrees that on and after the date
hereof, and so long as any Debenture shall be outstanding:

            (a) The Corporation will punctually pay or cause to be paid the
principal and interest to become due in respect of all the Debentures according
to the terms hereof; and

            (b) The Corporation will maintain an office or agency, presently
located at 347 Court Street, Binghamton, New York 13905-, where notices,
presentations and demands to or upon the Corporation in

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respect of the Debenture may be given or made, or at such other place by the
Corporation from time to time to the owner of the Debenture.

            (c) The Corporation will comply with covenants, restrictions and
agreements contained in a certain Guarantee of this Debenture dated as of the
date hereof and made by Stock Holding Company, Inc. and Dick's Clothing and
Sporting Goods of Syracuse, Inc.

         5. The Corporation, for itself and for its successors and assigns,
covenants and agrees and the owner of this Debenture by his acceptance hereof
likewise covenants and agrees that the payment of, or in respect of, the
principal of and interest on each and all of the Debentures and any prepayments
provided in Section 3 of this Debenture are hereby expressly subordinated to the
extent and in the manner hereinafter set forth, in right of payment, to the
prior payment in full of all other indebtedness of the Corporation of any kind,
secured or unsecured, contingent or otherwise, to any and all banks, trust
companies, savings and loan associates, insurance companies and other financial
or lending institutions, which may at any time and from time to time be
outstanding (such other indebtedness, including interest thereon, being herein
collectively referred to as "Senior Indebtedness").

            (a) The indebtedness of the Corporation represented by this
Debenture shall not be payable, discharged or satisfied, and no payment or other
consideration on account thereof, whether by way of loan or otherwise nor any
security therefor, shall be made or given by the Corporation or received,
accepted or retained by the holders of the Debentures, or any of them, unless
and until the Corporation has

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paid and satisfied in full the Senior Indebtedness. Anything herein contained to
the contrary notwithstanding, until a default on any Senior Indebtedness has
occurred and is continuing in accordance with the terms of such Senior
Indebtedness, the Corporation may pay scheduled principal installments of and
interest on the Debentures, including prepayments or principal on the
debentures, and the holders of the Debentures may receive, accept and retain,
such payments on the Debentures as and when due and payable as herein stated
without, however, giving any effect to any acceleration of such payments by
reason of any event of default hereunder. Upon the occurrence of an event of
default under such Senior Indebtedness, the Corporation shall notify the holder
of the Debenture by mail in accordance with the notice provisions contained in
Section 4(a) hereof. Immediately upon the occurrence of a default on any
Senior Indebtedness, the foregoing rights of the Corporation to pay and of the
holder hereof to receive, accept and retain such payments shall automatically
terminate until such default has been cured or waived by the holders of Senior
Indebtedness.

            (b) Upon any receivership, insolvency, bankruptcy, assignment for
the benefit of creditors, arrangement, composition or reorganization whether or
not pursuant to bankruptcy laws, sale of all or substantially all of the assets,
dissolution, liquidation or any other marshalling of the assets and liabilities
of the Corporation (whether or not involving insolvency or bankruptcy), or upon
the institution and during the pendency of any proceeding or the taking of any
steps for the general application of the Corporation's assets to the payment of
the Corporation's liabilities, voluntary or involuntary, or

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upon the institution and during the pendency of any proceeding by or against the
Corporation for any relief under any bankruptcy or insolvency law or laws
relating to the relief of debtors, readjustment of indebtedness, reorganization,
arrangement, composition or extension, or any marshalling of the assets and
liabilities of the Corporation:

            (i) No amount shall be paid by the Corporation, its successors and
assigns, in respect of the principal of, or interest of such Debentures,
unless and until all the Senior Indebtedness of the Corporation which at the
time shall be outstanding shall have been paid in full together with all
interest thereon and all other amounts payable in respect of the Senior
Indebtedness; and

            (ii) Any payment or distribution of assets of the Corporation of
any kind or character, whether in cash, property or securities to which the
owners of the Debentures would be entitled except of the provisions of this
Section 6 shall be paid by the liquidating trustee or agent or other person
making such payment or distribution, whether a trustee in bankruptcy, a
receiver or liquidating trustee or otherwise, directly to the holders of the
Senior Indebtedness held or represented by each, to the extent necessary to
pay in full all the Senior Indebtedness remaining unpaid, after giving effect to
any concurrent payment or distribution to the holders of such Senior
Indebtedness; and in the event any payment or distribution of assets of the
Corporation of any kind or character, whether in cash, property or securities
shall be received (directly or indirectly, whether by way of loan, set-off or
otherwise) by the owner of this Debenture before all the Senior Indebtedness
shall have been paid in

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full, such payment or distribution shall be forthwith turned over and paid to
the holders of such Senior Indebtedness, ratably as aforesaid, for application
to the payment of the Senior Indebtedness, remaining, unpaid until all the
Senior Indebtedness shall have been paid in full, after giving effect to any
concurrent payment or distribution to the holders of the Senior Indebtedness,
the owners of the distribution to the holders of the Senior Indebtedness, the
owners of the Debentures shall be subrogated to the rights of the holders of the
Senior Indebtedness to receive payments or distributions of assets of the
Corporation made on the Senior Indebtedness until the Debentures shall be paid
in full.

            (c) The foregoing subordination provisions of this Section 5 are
solely for the purposes of defining the relative rights of the holders of the
Debentures and the holders of Senior Indebtedness and nothing herein shall
impair as between the Corporation and the holder of this Debenture, the
obligation of the corporation, which is unconditional and absolute as herein set
forth, to pay the holder of this Debenture the principal of and interest on this
Debenture as and when the same shall become due and payable in accordance with
its terms, subject to such subordination provisions.

         6. Subject to the provisions of Section 6 hereof, this Debenture
together with accrued and unpaid interest shall become and be due and payable
upon demand made by the owner hereof if one or more of the following events
(herein called "events of default"), shall happen and be continuing at the time
of such demand, that is to say:

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            (a) Default in the payment of any installment of this Debenture when
and as the same shall become due and payable, whether at maturity, by
acceleration or otherwise, and the continuance of such default for a period of
fifteen (15) days after written notices thereof; or

            (b) Default in the due observance or performance of any other
covenant, condition or agreement on the part of the Corporation to be observed
or performed pursuant to the terms hereof, and the continuance of such default
for 30 days thereafter;

            (c) Any default (unless duly waived in writing by the obligee) shall
occur with respect to any evidence of indebtedness (other than the Debenture) of
the Corporation or under any agreement under which any evidence of indebtedness
may be issued by the Corporation and such default results in the acceleration
of such indebtedness by the holder thereof; or

            (d) The Corporation shall make an assignment for the benefit of
creditors or a composition with creditors, shall be unable, or admit in writing
its inability, to pay its debts as they mature, shall generally not pay its
debts when they are due, shall file a petition in bankruptcy, shall become
insolvent (howsoever such insolvency may be evidenced), shall suffer an order
for relief to be entered against it under any bankruptcy law, shall petition or
apply to any tribunal for the appointment of any receiver, custodian, liquidator
or trustee of or for it or any substantial part of it property or other assets
or shall commence any proceeding relating to it under any bankruptcy,
insolvency, reorganization, arrangement, readjustment of debt,

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receivership, dissolution or liquidation law or statutes of any jurisdiction,
whether now or hereafter in effect; or there shall be commenced against the
Corporation any such proceeding which shall remain undismissed for a period of
sixty (60) days or more, or the Corporation shall by any act or failure to act
indicate its consent to, approval of or acquiescence in, any such proceeding or
in the appointment of any receiver, custodian, liquidator or trustee of or for
it or any substantial part of its property or other assets, or shall suffer any
such appointment to continue undischarged or unstayed for a period of sixty
(60) days or more; or the Corporation shall take any action for the purpose of
effecting any of the foregoing.

         7. In case any one or more of the events of default specified in
Section 6 of this Debenture, shall occur and be continuing, the owner of the
Debenture subject to the provisions of Section 5 hereof, may proceed to
protect and enforce its rights by suit in equity, action at law and/or by other
appropriate proceeding, whether for the specific performance of any covenant or
agreement contained in this Debenture or in aid or the exercise of any power
granted in this Debenture, or may proceed to enforce the payment of this
Debenture or to enforce any other legal or equitable right of the owner of this
Debenture.

         8. This Debenture shall be construed in accordance with the internal
laws of the State of New York applicable to contracts between residents of that
State, entered into and to be performed entirely within that State. All the
covenants, stipulations, promises

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and agreements in the Debentures by or on behalf of the Corporation shall bind
its successors and assigns, whether so expressed or not.

         9. The Corporation agrees that as long as any Debenture is outstanding,
it will furnish to the holder.

            (a) annually, within three months after the close of the
Corporation's fiscal year, a copy of a consolidated balance sheet of the
Corporation as at the close of the previous fiscal year, reviewed by the
Corporation's independent, certified public accountants; and

            (b) quarterly, within 60 days after the close of each quarter annual
period, a copy of the Corporations' unaudited consolidated balance sheet as
currently prepared by the Corporation for its officers and directors.

         IN WITNESS WHEREOF, Dick's Acquisition Corp. has caused this Debenture
to be signed in its corporate name by one of its officers thereunto duly
authorized and to be dated as of the 1st day of May, 1986.

                                        DICK'S ACQUISITION CORP.

                                        By: /s/ Edward W. Stack
                                           -------------------------------------
                                                           President

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  Date of                 Name and Address of               Signature of
registration               Registered Owner                  Registrar
------------              -------------------               ------------

May 1, 1986                Richard J. Stack            /s/             Asst Secy

                                       10<PAGE>

                                                                    Exhibit 10.8

                           California Chapters of the
                Society of Industrial and Office Realtors, Inc.

                          INDUSTRIAL REAL ESTATE LEASE
                            (SINGLE-TENANT FACILITY)

ARTICLE ONE: BASIC TERMS

This Article One contains the Basic Terms of this Lease between the Landlord and
Tenant named below. Other Articles, Sections and Paragraphs of the Lease
referred to in this Article One explain and define the Basic Terms and are to be
read in conjunction with the Basic Terms.

<TABLE>

<S>                             <C>              <C>
Section 1.01. DATE OF LEASE:    February 4, 1999

Section 1.02. LANDLORD (INCLUDE LEGAL ENTITY):   Panattoni Development Company, or Assignee
Address of Landlord:                             8401 Jackson Road
                                                 Sacramento, CA 95826

Section 1.03. TENANT (INCLUDE LEGAL ENTITY):     Dick's Clothing & Sporting Goods, Inc.
Address of Tenant:                               400 Fairway Drive
                                                 Coraopolis, PA 15108
</TABLE>

Section 1.04. PROPERTY: (include street address, approximate square footage and
description) an approximately 388,190 square foot facility on approximately
fifty acres in the I-70 Industrial Park in Westmoreland County, Pennsylvania.

Section 1.05. LEASE TERM: 20 years 0 months BEGINNING ON approximately December
1.1999 or such other date as is specified in this Lease, and ending on
approximately November 30, 2019

Section 1.06. PERMITTED USES: (See Article Five) storage, distribution, and
other such uses as permitted by code and applicable local regulations

Section 1.07. TENANT'S GUARANTOR: (If none, so state)   None

Section 1.08. BROKERS: (See Article Fourteen) (If none, so state)
Landlord's Broker:    Eagan Real Estate
Tenant's Broker:      Eagan Real Estate

Section 1.09. COMMISSION PAYABLE TO LANDLORD'S BROKER: (See Article Fourteen)
$______ per separate agreement

Section 1.10. INITIAL SECURITY DEPOSIT: (See Section 3.03)  $235,000

Section 1.11. VEHICLE PARKING SPACES ALLOCATED TO TENANT:  per site plan

Section 1.12. RENT AND OTHER CHARGES PAYABLE BY TENANT:
(a) BASE RENT: __________________, or (ii) See Addendum to Lease, Paragraph 1.
(If (ii) is completed, then (i) and Section 3.02 are inapplicable.)

(b) OTHER PERIODIC PAYMENTS: (i) Real Property Taxes (See Section 4.02); (ii)
Utilities (See Section 4.03); (iii) Insurance Premiums (See Section 4.04); (iv)
Impounds for Insurance Premiums and Property Taxes (See Section 4.07);(v)
Maintenance, Repairs and Alterations (See Article Six).

Section 1.13. LANDLORD'S SHARE OF PROFIT ON ASSIGNMENT OR SUBLEASE: (See Section
9.05) fifty percent (50%) of the Profit (the "Landlord's Share").

Section 1.14. RIDERS: The following Riders are attached to and made a part of
this Lease: (If none, so state)
        Addendum to Lease
        Exhibit A - Site Plan
        Hazardous Materials Rider
        Exhibit B - Construction Specifications (to be attached)

Note:     The language in this Lease is based on the SIOR Format and has been
          modified throughout per mutual agreement of Landlord and Tenant.

1988 California Chapters of the                                  Initials  JQ
  Society of Industrial and        (SINGLE TENANT NET FORMS)     Initials  JC CP
  Office Realtors(R), Inc.

<PAGE>

ARTICLE TWO: LEASE TERM

Section 2.01. LEASE OF PROPERTY FOR LEASE TERM. Landlord leases the Property to
Tenant and Tenant leases the Property from Landlord for the Lease Term. The
Lease Term is for the period stated in Section 1.05 above and shall begin and
end on the dates specified in Section 1.05 above, unless the beginning or end of
the Lease Term is changed under any provision of this Lease. The "Commencement
Date" shall be the date specified in Section 1.05 above for the beginning of the
Lease Term, unless advanced or delayed under any provision of this Lease.

Section 2.02. DELAY IN COMMENCEMENT. Landlord shall not be liable to Tenant if
Landlord does not deliver possession of the Property to Tenant on the
Commencement Date. Landlord's non-delivery of the Property to Tenant on that
date shall not affect this Lease or the obligations of Tenant under this Lease
except that the Commencement Date shall be delayed until Landlord delivers
possession of the Property to Tenant and the Lease Term shall be extended for a
period equal to the delay in delivery of possession of the Property to Tenant,
plus the number of days necessary to end the Lease Term on the last day of a
month. If delivery of possession of the Property to Tenant is delayed, Landlord
and Tenant shall, upon such delivery, execute an amendment to this Lease setting
forth the actual Commencement Date and expiration date of the Lease. Failure to
execute such amendment shall not affect the actual Commencement Date and
expiration date of the Lease.

Section 2.03. EARLY OCCUPANCY. If Tenant occupies the Property prior to the
Commencement Date, Tenant's occupancy of the Property shall be subject to all of
the provisions of this Lease. Early occupancy of the Property shall not advance
the expiration date of this Lease. Tenant shall pay Base Rent and all other
charges specified in this Lease for the early occupancy period.

Section 2.04. HOLDING OVER. Tenant shall vacate the Property upon the expiration
or earlier termination of this Lease. Tenant shall reimburse Landlord for and
indemnify Landlord against all damages which Landlord incurs from Tenant's delay
in vacating the Property. If Tenant does not vacate the Property upon the
expiration or earlier termination of the Lease and Landlord thereafter accepts
rent from Tenant, Tenant's occupancy of the Property shall be a "month-to-month"
tenancy, subject to all of the terms of this Lease applicable to a
month-to-month tenancy, except that the Base Rent then in effect shall be
increased by twenty-five percent (25%).

ARTICLE THREE: BASE RENT

Section 3.01. TIME AND MANNER OF PAYMENT. Upon execution of this Lease, Tenant
shall pay Landlord the Base Remit in the amount stated in Paragraph 1.12(a)
above for the first month of the Lease Term, on the first day of the second
month of the Lease Term and each month thereafter, Tenant shall pay Landlord the
Base Rent, in advance, without offset, deduction or prior demand. The Base Rent
shall be payable at Landlord's address or at such other place as Landlord may
designate in writing. So long as there is no interference with the construction
activities of the facility, the Tenant may commence the installation of trade
fixtures thirty (30) days prior to the occupancy (target date of December 1,
1999). This provision is merely an accommodation to the tenant to allow early
occupancy and shall not be considered "free rent."

Section 3.02. COST OF LIVING INCREASES.

Section 3.03. SECURITY DEPOSIT; INCREASES.

         (a) Upon the execution of this Lease, Tenant shall deposit with
Landlord a cash Security Deposit in the amount set forth in Section 1.10 above.
Landlord may apply all or part of the Security Deposit to any unpaid rent or
other charges due from Tenant or to cure any other defaults of Tenant. If
Landlord uses any part of the Security Deposit,

1988 California Chapters of the                                  Initials  JQ
  Society of Industrial and        (Single Tenant Net Forms)     Initials  JC CP
  Office Realtors(R), Inc.

<PAGE>

Tenant shall restore the Security Deposit to its full amount within ten (10)
days after Landlord's written request. Tenant's failure to do so shall be a
material default under this Lease. No interest shall be paid on the Security
Deposit. Landlord shall not be required to keep the Security Deposit separate
from its other accounts and no trust relationship is created with respect to the
Security Deposit.

Section 3.04. TERMINATION; ADVANCE PAYMENTS. Unless earlier terminated as set
forth in the Addendum to the Lease, upon termination of this Lease under Article
Seven (Damage or Destruction), Article Eight (Condemnation) or any other
termination not resulting from Tenant's default, and after Tenant has vacated
the Property in the manner required by this Lease, Landlord shall refund or
credit to Tenant (or Tenant's successor) the unused portion of the Security
Deposit, any advance rent or other advance payments made by Tenant to Landlord,
and any amounts paid for real property taxes and other reserves which apply to
any time periods after termination of the Lease.

ARTICLE FOUR: OTHER CHARGES PAYABLE BY TENANT

Section 4.01. ADDITIONAL RENT. All charges payable by Tenant other than Base
Rent are called "Additional Rent." Unless this Lease provides otherwise, Tenant
shall pay all Additional Rent then due with the next monthly installment of Base
Rent. The term "rent" shall mean Base Rent and Additional Rent.

Section 4.02. PROPERTY TAXES.
         (a) REAL PROPERTY TAXES. Tenant shall pay all real property taxes on
the Property (including any fees, taxes or assessments against, or as a result
of, any tenant improvements installed on the Property by or for the benefit of
Tenant) during the Lease Term. Subject to Paragraph 4.02(c) and Section 4.07
below, such payment shall be made at least ten (10) days prior to the
delinquency date of the taxes. Within such ten (10) -day period, Tenant shall
furnish Landlord with satisfactory evidence that the real property taxes have
been paid, Landlord shall reimburse Tenant for any real property taxes paid by
Tenant covering any period of the prior to or after the Lease Term. If Tenant
fails to pay the real property taxes when due, Landlord may pay the taxes and
Tenant shall reimburse Landlord for the amount of such tax payment as Additional
Rent.

         (b) DEFINITION OF "REAL PROPERTY TAX." "Real property tax" means: (i)
any fee, license fee, license tax, business license fee, levy, charge,
assessment, penalty or tax imposed by any taxing authority against the Property;
(ii) (iii) any tax or charge for fire protection, streets, sidewalks, road
maintenance, refuse or other services provided to the Property by any
governmental agency; (iv) any tax (except Tenant shall not be responsible for
associated transfer taxes) imposed upon this transaction or based upon a
re-assessment of the Property due to a change of ownership, as defined by
applicable law, or other transfer of all or part of Landlord's interest in the
Property; and (v) any charge or fee replacing any tax previously included within
the definition of real property tax, "Real property tax" does not, however,
include Landlord's federal or state income, franchise, inheritance or estate
taxes.

         (c) JOINT ASSESSMENT.

         (d) PERSONAL PROPERTY TAXES.
             (i) Tenant shall pay all taxes charged against trade fixtures,
furnishings, equipment or any other personal property belonging to Tenant.
Tenant shall try to have personal property taxed separately from the Property.
             (ii) If any of Tenant's personal property is taxed with the
Property, Tenant shall pay Landlord the taxes for the personal property within
fifteen (15) days after Tenant receives a written statement from Landlord for
such personal property taxes.

         (e) TENANT'S RIGHT TO CONTEST TAXES. Tenant may attempt to have the
assessed valuation of the Property reduced or may initiate proceedings to
contest the real property taxes. If required by law, Landlord shall join in the
proceedings brought by Tenant. However, Tenant shall pay all costs of the
proceedings, including any costs or fees incurred by Landlord. Upon the final
determination of any proceeding or contest, Tenant shall immediately pay the
real property taxes due, together with all costs, charges, interest and
penalties incidental to the proceedings. If Tenant does not pay the real
property taxes when due and contests such taxes. Tenant shall not be in default
under this Lease for nonpayment of such taxes if Tenant deposits funds with
Landlord or opens an interest-bearing account reasonably acceptable to Landlord
in the joint names of Landlord and Tenant. The amount of such deposit shall be
sufficient to pay the real property taxes plus a reasonable estimate of the
interest, costs, charges and penalties which may accrue if Tenant's action is
unsuccessful, less any applicable tax impounds previously paid by Tenant to
Landlord. The deposit shall be applied to the real property taxes due, as
determined at such proceedings. The real property taxes shall be paid under
protest from such deposit if such payment under protest is necessary to prevent
the Property from being sold under a "tax sale" or similar enforcement
proceeding.

Section 4.03. UTILITIES. Tenant shall pay, directly to the appropriate supplier,
the cost of all natural gas, heat, light, power, sewer service, telephone,
water, refuse disposal and other utilities and services supplied to the Property

1988 California Chapters of the                                  Initials  JQ
  Society of Industrial and        (Single Tenant Net Forms)     Initials  JC CP
  Office Realtors(R), Inc.

<PAGE>

However, if any services or utilities are jointly metered with other property,
Landlord shall make a reasonable determination of Tenant's proportionate share
of the cost of such utilities and services and Tenant shall pay such share to
Landlord within fifteen (15) days after receipt of Landlord's written statement.

Section 4.04. INSURANCE POLICIES.
         (a) LIABILITY INSURANCE. During the Lease Term, Tenant shall maintain a
policy of commercial general liability insurance (sometimes known as broad form
comprehensive general liability insurance) insuring Tenant against liability for
bodily injury, property damage (including loss of use of property) and personal
injury arising out of the operation, use or occupancy of the Property. Tenant
shall name Landlord as an additional insured under such policy. The initial
amount of such insurance shall be One Million Dollars ($1,000,000) per
occurrence and shall be subject to periodic increase based upon inflation,
increased liability awards, recommendation of Landlord's professional insurance
advisers and other relevant factors. The liability insurance obtained by Tenant
under this Paragraph 4.04(a) shall (i) be primary and non-contributing; (ii)
contain cross-liability endorsements; and (iii) insure Landlord against Tenant's
performance under Section 5.05, if the matters giving rise to the indemnity
under Section 5.05 result from the negligence of Tenant. The amount and coverage
of such insurance shall not limit Tenant's liability nor relieve Tenant of any
other obligation under this Lease. Landlord may also obtain comprehensive public
liability insurance in an amount and with coverage determined by Landlord
insuring Landlord against liability arising out of ownership, operation, use or
occupancy of the Property. The policy obtained by Landlord shall not be
contributory and shall not provide primary insurance.

         (b) PROPERTY AND RENTAL INCOME INSURANCE. During the Lease Term,
Landlord shall maintain policies of insurance covering loss of or damage to the
Property in the full amount of its replacement value. Such policy shall contain
an Inflation Guard Endorsement and shall provide protection against all perils
included within the classification of fire, extended coverage, vandalism,
malicious mischief, special extended perils (all risk), sprinkler leakage and
any other perils which Landlord deems reasonably necessary. Landlord shall have
the right to obtain flood and earthquake insurance if required by any lender
holding a security interest in the Property. Landlord shall not obtain insurance
for Tenant's fixtures or equipment or building improvements installed by Tenant
on the Property. During the Lease Term, Landlord shall also maintain a rental
income insurance policy, with loss payable to Landlord, in an amount equal to
one year's Base Rent, plus estimated real property taxes and insurance premiums.
The Tenant agrees to reimburse Landlord for rental income insurance to a maximum
of One Thousand Dollars ($1,000) per annum. Tenant shall be liable for the
payment of any deductible amount under Landlord's or Tenant's insurance policies
maintained pursuant to this Section 4.04, in an amount not to exceed Ten
Thousand Dollars ($10,000). Tenant shall not do or permit anything to be done
which invalidates any such insurance policies.

         (c) PAYMENT OF PREMIUMS. Subject to Section 4.07, Tenant shall pay all
premiums for the insurance policies described in Paragraphs 4.04(a) and (b)
(whether obtained by Landlord or Tenant) within fifteen (15) days after Tenant's
receipt of a copy of the premium statement or other evidence of the amount due,
except Landlord shall pay all premiums for non-primary comprehensive public
liability insurance which Landlord elects to obtain as provided in Paragraph
4.04(a). The Tenant agrees to reimburse Landlord for rental income insurance to
a maximum of One Thousand Dollars ($1,000) per annum. If insurance policies
maintained by Landlord cover improvements on real property other than the
Property, Landlord shall deliver to Tenant a statement of the premium applicable
to the Property showing in reasonable detail how Tenant's share of the premium
was computed. If the Lease Term expires before the expiration of an insurance
policy maintained by Landlord, Tenant shall be liable for Tenant's prorated
share of the insurance premiums. Before the Commencement Date, Tenant shall
deliver to Landlord a copy of any policy of insurance which Tenant is required
to maintain under this Section 4.04. At least thirty (30) days prior to the
expiration of any such policy, Tenant shall deliver to Landlord a renewal of
such policy. As an alternative to providing a policy of insurance, Tenant shall
have the right to provide Landlord a certificate of insurance, executed by an
authorized owner of the insurance company, showing that the insurance which
Tenant is required to maintain under this Section 4.04 is in full force and
effect and containing such other information which Landlord reasonably requires.

         (d) GENERAL INSURANCE PROVISIONS.
             (i) Any insurance which the either party is required to maintain
under this Lease shall include a provision which requires the insurance carrier
to give the other party not less than thirty (30) days' written notice prior to
any cancellation or modification of such coverage.
             (ii) If either party fails to deliver any policy, certificate or
renewal to the other party required under this Lease within the prescribed time
period or if any such policy is canceled or modified during the Lease Term
without the other party's consent, the other party may obtain such insurance, in
which case either party shall reimburse the other party for the cost of such
insurance within fifteen (15) days after receipt of a statement that indicates
the cost of such insurance.
             (iii) Tenant shall maintain all insurance required under this Lease
with companies holding a "General Policy Rating" of A-12 or better, as set forth
in the most current issue of "Best Key Rating Guide". Landlord and Tenant
acknowledge the insurance markets are rapidly changing and that insurance in
the form and amounts described in this Section 4.04 may not be available in the
future. Tenant acknowledges that the insurance described in this Section 4.04
is for the primary benefit of Landlord. If at any time during the Lease Term,
Tenant is unable to maintain the insurance required under the Lease, Tenant
shall nevertheless maintain insurance coverage which is customary and
commercially reasonable in the insurance industry for Tenant's type of
business, as that coverage may change from time to time. Landlord makes no
representation as to the adequacy of such insurance to protect

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Landlord's or Tenant's interests. Therefore, Tenant shall obtain any such
additional property or liability insurance which Tenant deems necessary to
protect Landlord and Tenant.
         (iv) Unless prohibited under any applicable insurance policies
maintained, Landlord and Tenant each hereby waive any and all rights of recovery
against the other, or against the officers, employees, agents or representative
of the other, for loss of or damage to its property or the property of others
under its control, if such loss or damage is covered by any insurance policy in
force (whether or not described in this Lease) at the time or such loss or
damage. Upon obtaining the required policies of insurance, Landlord and Tenant
shall give notice to the insurance carriers of this mutual waiver of
subrogation.

Section 4.05. LATE CHARGES. Tenant's failure to pay rent promptly may cause
Landlord to incur unanticipated costs. The exact amount of such costs are
impractical or extremely difficult to ascertain. Such costs may include, but are
not limited to, processing and accounting charges and late charges which may be
imposed on Landlord by any ground lease, mortgage or trust deed encumbering the
Property. Therefore, if Landlord does not receive any rent payment within ten
(10) days after it becomes due, Tenant shall pay Landlord a late charge equal to
five percent (5%) of the overdue amount. The parties agree that such late charge
represents a fair and reasonable estimate of the costs Landlord will incur by
reason of such late payment.

Section 4.06. INTEREST ON PAST DUE OBLIGATIONS. Any amount owed by Tenant to
Landlord which is not paid when due shall bear interest at the rate of twelve
percent (12%) per annum from the due date of such amount. However, interest
shall not be payable on late charges to be paid by Tenant under this Lease. The
payment of interest on such amounts shall not excuse or cure any default by
Tenant under this Lease. If the interest rate specified in this Lease is higher
than the rate permitted by law, the interest rate is hereby decreased to the
maximum legal interest rate permitted by law.

Section 4.07. IMPOUNDS FOR INSURANCE PREMIUMS AND REAL PROPERTY TAXES. If
requested by any ground lessor or lender to whom Landlord hat granted a security
interest in the Property, or if Tenant is more than ten (10) days late in the
payment of rent more than three times in any consecutive twelve (12) -month
period, Tenant shall pay Landlord a sum equal to one-twelfth (1/12) of the
annual real property taxes and insurance premiums payable by Tenant under this
Lease, together with each payment of Base Rent. Landlord shall hold such
payments in a noninterest bearing impound account. If unknown, Landlord shall
reasonably estimate the amount of real property taxes and insurance premiums
when due. Tenant shall pay any deficiency of funds in the impound account to
Landlord upon written request. If Tenant defaults under this Lease, Landlord may
apply any funds in the impound account to any obligation then due under this
Lease.

ARTICLE FIVE: USE OF PROPERTY

Section 5.01. PERMITTED USES. Tenant may use the Property only for the Permitted
Uses set forth in Section 1.06 above.

Section 5.02. MANNER OF USE. Tenant shall not cause or permit the Property to be
used in any way which constitutes a violation of any law, ordinance, or
governmental regulation or order, which annoys or interferes with the rights of
other tenants of Landlord, or which constitutes a nuisance or waste. Tenant
shall obtain and pay for all permits, including a Certificate of Occupancy,
required for Tenant's occupancy of the Property and shall promptly take all
actions necessary to comply with all applicable statutes, ordinances, rules,
regulations, orders and requirements regulating the use by Tenant of the
Property, including the Occupational Safety and Health Act.

              See Hazardous Materials Rider for additional details
Sections 5.03. HAZARDOUS MATERIALS. As used in this Lease, the term "Hazardous
Material" means any flammable items, explosives, radioactive materials,
hazardous or toxic substances, material or waste or related materials, including
any substances defined as or included in the definition of "hazardous
substances", "hazardous wastes", "hazardous materials" or "toxic substances" now
or subsequently regulated under any applicable federal, state or local laws or
regulations, including without limitation petroleum-based products, paints,
solvents, lead, cyanide, DDT, printing inks, acids, pesticides, ammonia
compounds and other chemical products, asbestos, PCBs and similar compounds, and
including any different products and materials which are subsequently found to
have adverse effects on the environment or the health and safety of persons.
Tenant shall not cause or permit any Hazardous Material to be generated,
produced, brought upon, used, stored, treated or disposed of in or about the
Property by Tenant, its agents, employees, contractors, sublessees or invitees
without the prior written consent of Landlord. Landlord shall be entitled to
take into account such other factors or facts as Landlord may reasonably
determine to be relevant in determining whether to grant or withhold consent to
Tenant's proposed activity with respect to Hazardous Material. In no event,
however, shall Landlord be required ho consent to the installation or use of any
storage tanks on the Property.

Section 5.04. SIGNS AND AUCTIONS. Tenant shall not place any signs on the
Property without Landlord's prior written consent. Landlord's consent will not
be unreasonably withheld. Tenant shall not conduct or permit any auctions or
sheriff's sales at the Property.

Section 5.05. INDEMNITY. Tenant shall indemnify Landlord against and hold
Landlord harmless from any and all costs, claims or liability arising from: (a)
Tenant's use of the Property; (b) the conduct of Tenant's business or anything
else done or permitted by Tenant to be done in or about the Properly, including
any contamination of the Property or any other property resulting from the
presence or use of Hazardous Material caused or permitted by Tenant; (c) any
breach or default in the performance of Tenant's obligations under this Lease;
(d) any

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misrepresentation or breach of warranty by Tenant under this Lease; or (c) other
acts or omissions of Tenant. Tenant shall defend Landlord against any such cost,
claim or liability at Tenant's expense. As a material part of the consideration
to Landlord, Tenant assumes all risk of damage to property or injury to persons
in or about the Property arising from any cause, and Tenant hereby waives all
claims in respect thereof against Landlord, except for any claim arising out of
Landlord's negligence or willful misconduct. As used in this Section, the term
"Tenant" shall include Tenant's employees, agents, contractors and invitees, if
applicable. Landlord shall indemnify Tenant for damage arising from acts done,
or failure to act where required by Landlord, for all costs and expenses
incurred by Tenant in connection therewith.

Section 5.06. LANDLORD'S ACCESS. Landlord or its agents may enter the Property,
subject to reasonable notice and access does not interfere with Tenant's
operations, at all reasonable times to show the Property to potential buyers,
investors or tenants or other parties; to do any other act or to inspect and
conduct tests in order to monitor Tenant's compliance with all applicable
environmental laws and all laws governing the presence and use of Hazardous
Material; or for any other purpose Landlord deems necessary. Landlord shall give
Tenant prior notice of such entry, except in the case of an emergency. Landlord
may place customary "For Sale" or "For Lease" signs on the Property.

Section 5.07. QUIET POSSESSION. If Tenant pays the rent and complies with all
other terms of this Lease, Tenant may occupy and enjoy the Property for the full
Lease Term, subject to the provisions of this Lease.

ARTICLE SIX: CONDITION OF PROPERTY; MAINTENANCE, REPAIRS AND ALTERATIONS

Section 6.01. EXISTING CONDITIONS. At the beginning of the 13th month of the
lease, Tenant accepts the Property in its condition as of the
Commencement/Occupancy Date subject to all recorded matters, laws, ordinances,
and governmental regulations and orders, and Contractor warranties. Landlord
agrees to assign to the Tenant all contractor's warranties Except as provided
herein. Tenant acknowledges that neither Landlord nor any agent of Landlord has
made any representation as to the condition of the Property or the suitability
of the Property for Tenant's intended use. As of the Commencement/Occupancy
Date, Tenant represents and warrants that Tenant has made its own inspection of
and inquiry regarding the condition of the Property and is not relying on any
representations of Landlord (except as set forth within) or any Broker with
respect thereto.

Section 6.02. EXEMPTION OF LANDLORD FROM LIABILITY. After the expiration of any
warranty period, Landlord shall not be liable for any damage or injury to the
person, business (or any loss of income therefrom), goods, wares, merchandise or
other property of Tenant, Tenant's employees, invitees, customers or any other
person in or about the Property, whether such damage or injury is caused by or
results from: (a) fire, steam, electricity, water, gas or rain; (b) the
breakage, leakage, obstruction or other defects of pipes, sprinklers, wires,
appliances, plumbing, air conditioning or lighting fixtures or any other cause;
(c) conditions arising in or about the Property or from other sources or places;
or (d) any act or omission of any other tenant of Landlord. Landlord shall not
be liable for any such damage or injury even though the cause of or the means of
repairing such damage or injury are not accessible to Tenant. The provisions of
this Section 6.02 shall not, however, exempt Landlord from liability for
Landlord's negligence or willful misconduct.

Section 6.03. LANDLORD'S OBLIGATIONS. Subject to the provisions of Article Seven
(Damage or Destruction) and Article Eight (Condemnation). Landlord shall have
absolutely no responsibility to repair, maintain or replace any portion of the
Property at any time. Tenant waives the benefit of any present or future law
which might give Tenant the right to repair the Property at Landlord's expense
or to terminate the Lease due to the condition of the Property.

Section 6.04. TENANT'S OBLIGATIONS.
         (a) Except as provided in Article Seven (Damage or Destruction) and
Article Eight (Condemnation), Tenant shall keep all portions of the Property
(including structural, nonstructural, interior, exterior, and landscaped areas,
portions, systems and equipment) in good order, condition and repair (including
interior repainting and refinishing, as needed). If any portion of the Property
or any system or equipment in the Property which Tenant is obligated to repair
cannot be fully repaired or restored, Tenant shall promptly replace such portion
of the Property or system or equipment in the Property, regardless of whether
the benefit of such replacement extends beyond the Lease Term; but if the
benefit or useful life of such replacement extends beyond the Lease Term (as
such term may be extended by exercise of any options), the useful life of such
replacement shall be prorated over the remaining portion of the Lease Term (as
extended), and Tenant shall be liable only for that portion of the cost which is
applicable to the Lease Term (as extended). Tenant shall maintain a preventive
maintenance contract providing for the regular inspection and maintenance of the
heating and air conditioning system by a licensed heating and air conditioning
contractor. If any part of the Property is damaged by any act or omission of
Tenant, Tenant shall pay Landlord the cost of repairing or replacing such
damaged property, whether or not Landlord would otherwise be obligated to pay
the cost of maintaining or repairing such property. It is the intention of
Landlord and Tenant that at all times Tenant shall maintain the portions of the
Property which Tenant is obligated to maintain in an attractive, first-class and
fully operative condition.

         (b) Tenant shall fulfill all of Tenant's obligations under this Section
6.04 at Tenant's sole expense. If Tenant fails to maintain, repair or replace
the Property as required by this Section 6.04, Landlord may, upon ten (10) days'
prior

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notice to Tenant (except that no notice shall be required in the case of an
emergency), enter the Property and perform such maintenance or repair (including
replacement, as needed) on behalf of Tenant. In such case, Tenant shall
reimburse Landlord for all costs incurred in performing such maintenance or
repair immediately upon demand.

Section 6.05. ALTERATIONS, ADDITIONS, AND IMPROVEMENTS.
         (a) Tenant shall not make any alterations, additions, or improvements
to the Property without Landlord's prior written consent, except for
non-structural alterations which do not exceed Ten Thousand Dollars ($10,000) in
cost cumulatively over the Lease Term and which are not visible from the outside
of any building of which the Property is part. Landlord may require Tenant to
provide demolition and/or lien and completion bonds in form and amount
satisfactory to Landlord. Tenant shall promptly remove any alterations,
additions, or improvements constructed in violation of this Paragraph 6.05(a)
upon Landlord's written request. All alterations, additions, and improvements
shall be done in a good and workmanlike manner, in conformity with all
applicable laws and regulations, and by a contractor approved by Landlord. Upon
completion of any such work, Tenant shall provide Landlord with "as built"
plans, copies of all construction contracts, and proof of payment for all labor
and materials.

         (b) Tenant shall pay when due all claims for labor and material
furnished to the Property. Tenant shall give Landlord at least twenty (20) days'
prior written notice of the commencement of any work on the Property, regardless
of whether Landlord's consent to such work is required. Landlord may elect to
record and post notices of nonresponsibility on the Property.

Section 6.06. CONDITION UPON TERMINATION. Upon the termination of the Lease,
Tenant shall surrender the Property to Landlord, broom clean and in the same
condition as received except for ordinary wear and tear which Tenant was not
otherwise obligated to remedy under any provision of this Lease. However, Tenant
shall not be obligated to repair any damage which Landlord is required to repair
under Article Seven (Damage or Destruction). In addition, Landlord may require
Tenant to remove any alterations, additions or improvements (whether or not made
with Landlord's consent) prior to the expirations of the Lease and to restore
the Property to its prior condition, all at Tenant's expense. All alterations,
additions and improvements when Landlord has not required Tenant to remove shall
become Landlord's property and shall be surrendered to Landlord upon the
expirations or earlier termination of the Lease, except that Tenant may remove
any of Tenant's machinery or equipment which can be removed without material
damage to the Property. Tenant shall repair, at Tenant's expense, any damage to
the Property caused by the removal of any such machinery or equipment. In no
event, however, shall Tenant remove any of the following materials or equipment
(which shall be deemed Landlord's property) without Landlord's prior written
consent: any power wiring or power panels; lighting or lighting fixtures; wall
coverings; drapes, blinds or other window coverings; carpets or other floor
coverings; heaters, air conditioners or any other heating or air conditioning
equipment; fencing or security gates; or other similar building operating
equipment and decorations.

ARTICLE SEVEN: DAMAGE OR DESTRUCTION

Sections 7.01. PARTIAL DAMAGE TO PROPERTY.
         (a) Tenant shall notify Landlord in writing immediately upon the
occurrence of any damage to the Property. If the Property is only partially
damaged (i.e., less than fifty percent (50%) of the Property is untenantable as
a result of such damage or less than fifty percent (50%) of Tenant's operations
are materially impaired) and if the proceeds received by Landlord from the
insurance policies described in Paragraph 4.04(b) are sufficient to pay for the
necessary repairs, this Lease shall remain in effect and Landlord shall repair
the damage within nine (9) months. Landlord may elect (but is not required) to
repair any damage to Tenant's fixtures, equipment, or improvements.

         (b) If the insurance proceeds received by Landlord are not sufficient
to pay the entire cost of repair, or if the cause of the damage is not covered
by the insurance policies which Landlord maintains under Paragraphs 4.04(b)
Landlord may elect either to (i) repair the damage within nine (9) months, in
which case this Lease shall remain in full force and effect, or (ii) terminate
this Lease as of the date the damage occurred. Landlord shall notify Tenant
within thirty (30) days after receipt of notice of the occurrence of the damage
whether Landlord elects to repair the damage or terminate the Lease. If Landlord
elects to repair the damage, Tenant shall pay Landlord the "deductible amount"
(if any) under Landlord's insurance policies and, if the damage was due to an
act or omission of Tenant, or Tenant's employees, agents, contractors or
invitees, the difference between the actual cost of repair and any insurance
proceeds received by Landlord. If Landlord elects to terminate this Lease,
Tenant may elect to continue this Lease in full force and effect, in which each
Tenant shall repair any damage to the Property and any building in which the
Property is located. Tenant shall pay the cost of such repairs, except that upon
satisfactory completion of such repairs, Landlord shall deliver to Tenant any
insurance proceeds received by Landlord for the damage repaired by Tenant.
Tenant shall give Landlord written notice of such election within ten (10) days
after receiving Landlord's termination notice.

         (c) If the damage to the Property occurs during the last six (6) months
of the Lease Term and such damage will require more than thirty (30) days to
repair, either Landlord or Tenant may elect to terminate this Lease as of the
date the damage occurred, regardless of the sufficiency of any insurance
proceeds. The party electing to terminate this Lease shall give written
notification to the other party of such election within thirty (30) days after
Tenant's notice to Landlord of the occurrence of the damage.

Section 7.02. SUBSTANTIAL OR TOTAL DESTRUCTION. If the Property is substantially
or totally destroyed by any cause whatsoever (i.e., the damage to the Property
is greater than partial damage as described in Section 7.01), and

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regardless of whether Landlord receives any insurance proceeds, this Lease shall
terminate as of the date the destruction occurred. Notwithstanding the preceding
sentence, if the Property can be rebuilt within nine (9) months after the date
of destruction, Landlord may elect to rebuild the Property at Landlord's owns
expense, in which case this Lease shall remain in full force and effect.
Landlord shall notify Tenant of such election within thirty (30) days after
Tenant's notice of the occurrence of total or substantial destruction, if
Landlord so elects, Landlord shall rebuild the Property at Landlord's sole
expense, except that if the destruction was caused by an act or omission of
Tenant, Tenant shall pay Landlord the difference between the actual cost of
rebuilding and any insurance proceeds received by Landlord.

Section 7.03. TEMPORARY REDUCTION OF RENT. If the Property is destroyed or
damaged and Landlord or Tenant repairs or restores the Property pursuant to the
provisions of this Article Seven, any rent payable during the period of such
damage, repair and/or restoration shall be reduced according to the degree, if
any, to which Tenant's use of the Property is impaired. Except for such
possible reduction in Base Rent, insurance premiums and real property taxes,
Tenant shall not be entitled to any compensation, reduction, or reimbursement
from Landlord as a result of any damage, destruction, repair, or restoration of
or to the Property, unless such damage was caused by the negligence or willful
misconduct of Landlord, its agents, servants or employees.

Section 7.04. WAIVER. Tenant waives the protection of any statute, code or
judicial decision which grants a tenant the right to terminate a lease in the
event of the substantial or total destruction of the leased property. Tenant
agrees that the provisions of Section 7.02 above shall govern the rights and
obligations of Landlord and Tenant in the event of any substantial or total
destruction to the Property.

ARTICLE EIGHT: CONDEMNATION

If all or any portion of the Property is taken under the power of eminent domain
or sold under the threat of that power (all of which are called "Condemnation"),
this Lease shall terminate as to the part taken or sold on the date the
condemning authority takes title or possession, whichever occurs first. If more
than twenty percent (20%) of the floor area of the building in which the
Property is located, or which is located on the Property, is taken, either
Landlord or Tenant may terminate this Lease as of the date the condemning
authority takes title or possession, by delivering written notice to the other
within ten (10) days after receipt of written notice of such taking (or in the
absence of such notice, within ten (10) days after the condemning authority
takes title or possession). If neither Landlord nor Tenant terminates this
Lease, this Lease shall remain in effect as to the portions of the Property not
taken, except that the Base Rent and Additional Rent shall be reduced in
proportion to the reduction in the floor area of the Property. Any Condemnation
award or payment shall be distributed in the following order: (a) first, to any
ground lessor, mortgagee or beneficiary under a deed of trust encumbering the
Property, the amount of its interest in the Property; (b) second, to Tenant,
only the amount of any award specifically designated for loss of or damage to
Tenant's trade fixtures or removable personal property; and (c) third, to
Landlord, the remainder of such award, whether as compensation for reductions in
the value of the leasehold, the taking of the fee, or otherwise. If this Lease
is not terminated, Landlord shall repair any damage to the Property caused by
the Condemnation, except that Landlord shall not be obligated to repair any
damage for which Tenant has been reimbursed by the condemning authority. If the
severance damages received by Landlord are not sufficient to pay for such
repair, Landlord shall have the right to either terminate this Lease or make
such repair at Landlord's expense.

ARTICLE NINE: ASSIGNMENT AND SUBLETTING

Section 9.01. LANDLORD'S CONSENT REQUIRED. No portion of the Property or of
Tenant's interest in this Lease may be acquired by any other person or entity,
whether by sale, assignment, mortgage, sublease, transfer, or act of tenant,
without Landlord's prior written consent, except as provided in Section 9.02
below. Landlord has the right to grant or withhold its consent as provided in
Section 9.05 below. Any attempted transfer without consent shall be void and
shall constitute a non-curable breach of this Lease. If Tenant is a partnership,
any cumulative transfer of more than twenty percent (20%) of the partnership
interests shall require Landlord's consent.
         As long as Tenant is not subject to reporting requirements to the
Securities Exchange Act of 1934 (the "Act"), any change in the ownership of a
controlling interest of the voting stock of the corporation shall require
Landlord's consent which shall not be unreasonably withheld, but may be
conditioned upon the provisions of Section 9.05 hereof. In the event that Tenant
becomes subject to the reporting requirements of the Act, the preceding sentence
will no longer become applicable and Tenant's undertaking an initial public
offering and becoming subject to the Act will not constitute an assignment or
otherwise require Landlord's consent.

Section 9.02. TENANT AFFILIATE. Tenant may assign this Lease or sublease the
Property, without Landlord's consent, to any corporation which controls, is
controlled by or is under common control with Tenant, or to any corporation
resulting from the merger of or consolidation with Tenant ("Tenant's
Affiliate"). In such case any Tenant's Affiliate shall assume in writing all of
Tenant's obligations under this Lease.

Section 9.03. NO RELEASE OF TENANT.

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Section 9.04. OFFER TO TERMINATE. If Tenant desires to assign the Lease or
sublease the Property Tenant shall have the right to offer, in writing, to
terminate the Lease as of a date specified in the offer. If Landlord elects in
writing to accept the offer to terminate within twenty (20) days after notice of
the offer, the Lease shall terminate as or the date specified and all the terms
and provisions of the Lease governing termination shall apply. If Landlord does
not so elect. the Lease shall continue in effect until otherwise terminated and
the provisions of Section 9.05 with respect to any proposed transfer shall
continue to apply.

Section 9.05. LANDLORD'S CONSENT.
         (a) Tenant's request for consent to any transfer described in Section
9.01 shall set forth in writing the details of the proposed transfer, including
the name, business and financial condition of the prospective transferee,
financial details of the proposed transfer (e.g., the term of and the rent and
security deposit payable under any proposed assignment or sublease), and any
other information Landlord deems relevant. Landlord shall have the right to
withhold consent, if reasonable, or to grant consent, based on the following
factors: (i) the business of the proposed assignee or subtenant and the proposed
use of the Property; (ii) the net worth, and financial reputation of the
proposed assignee or subtenant; (iii) Tenant's compliance with all of its
obligations under the Lease; and (iv) such other factors as Landlord may
reasonably deem relevant. If Landlord objects to a proposed assignment solely
because of the net worth and or financial reputation of the proposed assignee,
Tenant may nonetheless sublease (but not assign), all or a portion of the
Property to the proposed transferee, but only on the other terms of the proposed
transfer.

         (b) If Tenant assigns or subleases, the following shall apply:
             (i) Tenant shall pay to Landlord as Additional Rent under the Lease
the Landlord's Share (stated in Section 1.13) of the Profit (defined below) on
such transaction as and when received by Tenant, unless Landlord gives written
notice to Tenant and the assignee or subtenant that Landlord's Share shall be
paid by the assignee or subtenant to Landlord directly. The "Profit" means (A)
all amounts paid to Tenant for such assignment or sublease, including "key"
money, monthly rent in excess of the monthly rent payable under the Lease, and
all fees and other consideration paid for the assignment or sublease, including
fees under any collateral agreements, less (B) costs and expenses directly
incurred by Tenant in connection with the execution and performance of such
assignment or sublease for real estate broker's commissions and costs of
renovation or construction of tenant improvements required under such assignment
or sublease. Tenant is entitled to recover such costs and expenses before Tenant
is obligated to pay the Landlord's Share to Landlord. The Profit in the case of
a sublease of less than all the Property is the rent allocable to the subleased
space as a percentage on a square footage basis.
             (ii) Tenant shall provide Landlord a written statement certifying
all amounts to be paid from any assignment or sublease of the Property within
thirty (30) days after the transaction documentation is signed, and Landlord may
inspect Tenant's books and records to verify the accuracy of such statement. On
written request, Tenant shall promptly furnish to Landlord copies of all the
transaction documentation, all of which shall be certified by Tenant to be
complete, true and correct. Landlord's receipt of Landlord's Share shall not be
a consent to any further assignment or subletting. The breach of Tenant's
obligation under this Paragraph 9.05(b) shall be a material default of the
Lease.

Section 9.06. NO MERGER. No merger shall result from Tenant's sublease of the
Property under this Article Nine, Tenant's surrender of this Lease or the
termination of this Lease in any other manner. In any such event, Landlord may
terminate any or all subtenancies or succeed to the interest of Tenant as
sublandlord under any or all subtenancies.

ARTICLE TEN: DEFAULTS; REMEDIES

Section 10.01. COVENANTS AND CONDITIONS. Tenant's performance of each of
Tenant's obligations under this Lease is a condition as well as a covenant.
Tenant's right to continue in possession of the Property is conditioned upon
such performance. Time is of the essence in the performance of all covenants and
conditions.

Section 10.02. DEFAULTS. Tenant shall be in material default under this Lease:
         (a) If Tenant abandons the Property or if Tenant's vacation of the
Property results in the cancellation of any insurance described in Section 4.04;

         (b) If Tenant fails to pay rent or any other charge when due;

         (c) If Tenant fails to perform any of Tenant's non-monetary obligations
under this Lease for a period of thirty (30) days after written notice from
Landlord; provided that if more than thirty (30) days are required to complete
such performance, Tenant shall not be in default if Tenant commences such
performance within the thirty (30)-day period and thereafter diligently
pursues its completion. However, Landlord shall not be required to give such
notice if Tenant's failure to perform constitutes a non-curable breach of this
Lease. The notice required by this Paragraph is intended to satisfy any and all
notice requirements imposed by law on Landlord and is not in addition to any
such requirement.

         (d) (i) If Tenant makes a general assignment or general arrangement for
the benefit of creditors; (ii) if a petition for adjudication of bankruptcy or
for reorganization or rearrangement is filed by or against Tenant and is not

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dismissed within thirty (30) days; (iii) if a trustee or receiver is appointed
to take possession of substantially all or Tenant's assets located at the
Property or of Tenant's interest in this Lease and possession is not restored to
Tenant within thirty (30) days; or (iv) if substantially all of Tenant's assets
located at the Property or of Tenant's interest in this Lease is subjected to
attachment, execution or other judicial seizure which is not discharged within
thirty (30) days. If a court of competent jurisdiction determines that any of
the acts described in this subparagraph (d) is not a default under this Lease,
and a trustee is appointed to take possession (or if Tenant remains a debtor in
possession) and such trustee or Tenant transfers Tenant's interest hereunder,
then Landlord shall receive, as Additional Rent, the excess, if any, of the rent
(or any other consideration) paid in connection with such assignment or sublease
over the rent payable by Tenant under this Lease.

         Section 10.03. REMEDIES. On the occurrence or any material default by
Tenant, Landlord may, at any time after the expiration of any applicable cure
period and after notice and demand, and without limiting Landlord in the
exercise of any right or remedy which Landlord may have: (a) Terminate Tenant's
right to possession of the Property by any lawful means, in which case this
Lease shall terminate and Tenant shall immediately surrender possession of the
Property to Landlord. In such event, Landlord shall be entitled to recover from
Tenant all damages incurred by Landlord by reason of Tenant's default, including
(i) the worth at the time of the award of the unpaid Base Rent, Additional Rent
and other charges which Landlord had earned at the time of the termination;
(ii) the worth at the time of the award of the amount by which the unpaid Base
Rent, Additional Rent and other charges which Landlord would have earned after
termination until the time of the award exceeds the amount of such rental loss
that Tenant proves Landlord could have reasonably avoided; (iii) the worth at
the time of the award of the amount by which the unpaid Base Rent, Additional
Rent and other charges which Tenant would have paid for the balance of the Lease
term after the time of award exceeds the amount of such rental loss that Tenant
proves Landlord could have reasonably avoided; and (iv) any other amount
necessary to compensate Landlord for all the detriment proximately caused by
Tenant's failure to perform its obligations under the Lease or which in the
ordinary course of things would be likely to result therefrom, including, but
not limited to, any costs or expenses Landlord incurs in maintaining or
preserving the Property after such default, the cost of recovering possession of
the Property, expenses of reletting, including necessary renovation or
alteration of the Property, Landlord's reasonable attorneys' fees incurred in
connection therewith, and any real estate commission paid or payable. As used in
subparts (i) and (ii) above, the worth at the time of the award" is computed by
allowing interest on unpaid amounts at the rate of twelve percent (12%) per
annum, or such lesser amount as may then be the maximum lawful rate. As used in
subpart (iii) above, the "worth at the time of the award" is computed by
discounting such amount at the discount rate of the Federal Reserve Bank of San
Francisco at the time of the award, plus one percent (1%). If Tenant has
abandoned the Property, Landlord shall have the option of (i) retaking
possession of the Property and recovering from Tenant the amount specified in
this Paragraph 10.03(a), or (ii) proceeding under Paragraph 10.03(b);

         (b) Maintain Tenant's right to possession, in which case this Lease
shall continue in effect whether or not Tenant has abandoned the Property. In
such event, Landlord shall be entitled to enforce all of Landlord's rights and
remedies under this Lease, including the right to recover the rent as it
becomes due;

         (c) Pursue any other remedy now or hereafter available to Landlord
under the laws or judicial decisions of the state in which the Property is
located.

         (d) Landlord will use its best efforts to mitigate damages.

         Section 10.04. REPAYMENT OF "FREE" RENT. If this Lease provides for a
postponement of any monthly rental payments, a period of "free" rent or other
rent concession, such postponed rent or "free" rent is called the "Abated
Rent". Tenant shall be credited with having paid all of the Abated Rent on the
expiration of this Lease Term only if Tenant has fully, faithfully, and
punctually performed all of Tenant's obligations hereunder, including the
payment of all rent (other than the Abated Rent) and all other monetary
obligations and the surrender of the Property in the physical condition required
by this Lease. Tenant acknowledges that its right to receive credit for the
Abated Rent is absolutely conditioned upon Tenant's full, faithful and punctual
performance of its obligations under this Lease. If Tenant defaults and does not
cure within any applicable grace period, the Abated Rent shall immediately
become due and payable in full and this Lease shall be enforced as if there were
no such rent abatement or other rent concession. In such case Abated Rent shall
be calculated based on the full initial rent payable under this Lease.

         Section 10.05. AUTOMATIC TERMINATION. Notwithstanding any other term or
provision hereof to the contrary, the Lease shall terminate on the occurrence of
any act which affirms the Landlord's intention to terminate the Lease as
provided in Section 10.03 hereof, including the filing of an unlawful detainer
action against Tenant. On such termination, Landlord's damages for default shall
include all costs and fees, including reasonable attorneys' fees that Landlord
incurs in connection with the filing, commencement, pursuing and or defending of
any action in any bankruptcy court or other court with respect to the Lease; the
obtaining of relief from any stay in bankruptcy restraining any action to evict
Tenant; or the pursuing of any action with respect to Landlord's right to
possession of the Property. All such damages suffered (apart from Base Rent and
other rent payable hereunder) shall constitute pecuniary damages which must be
reimbursed to Landlord prior to assumption of the Lease by Tenant or any
successor to Tenant in any bankruptcy or other proceeding.

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Section 10.06. CUMULATIVE REMEDIES. Landlord's exercise of any right or remedy
shall not prevent it from exercising any other right or remedy.

ARTICLE ELEVEN: PROTECTION OF LENDERS

Section 11.01. SUBORDINATION. Landlord shall have the right to subordinate this
Lease to any ground lease, deed of trust or mortgage encumbering the Property,
any advances made on the security thereof and any renewals, modifications,
consolidations, replacements or extensions thereof, whenever made or recorded.
Tenant shall cooperate with Landlord and any lender which is acquiring a
security interest in the Property or the Lease. Tenant shall execute such
further documents and assurances as such lender may require, provided that
Tenant's obligations under this Lease shall not be increased in any material way
(the performance of ministerial acts shall not be deemed material), and Tenant
shall not be deprived of its rights under this Lease. Tenant's right to quiet
possession of the Property during the Lease Term shall not be disturbed if
Tenant pays the rent and performs all of Tenant's obligations under this Lease
and is not otherwise in default. If any ground lessor, beneficiary or mortgagee
elects to have this Lease prior to the lien of its ground lease, deed of trust
or mortgage and gives written notice thereof to Tenant, this Lease shall be
deemed prior to such ground lease, deed of trust or mortgage whether this Lease
is dated prior or subsequent to the date of said ground lease, deed of trust or
mortgage or the date of recording thereof.

Section 11.02. ATTORNMENT. If Landlord's interest in the Property is acquired by
any ground lessor, beneficiary under a deed of trust, mortgagee, or purchaser at
a foreclosure sale, Tenant shall attorn to the transferee of or successor to
Landlord's interest in the Property and recognize such transferee or successor
as Landlord under this Lease. Tenant waives the protection of any statute or
rule of law which gives or purports to give Tenant any right to terminate this
Lease or surrender possession of the Property upon the transfer of Landlord's
interest.

Section 11.03. SIGNING OF DOCUMENTS. Tenant shall sign and deliver any
instrument or documents necessary or appropriate to evidence any such attornment
or subordination or agreement to do so. If Tenant fails to do so within ten (10)
days after written request, Tenant hereby makes, constitutes and irrevocably
appoints Landlord, or any transferee or successor of Landlord, the
attorney-in-fact of Tenant to execute and deliver any such instrument or
document.

Section 11.04. ESTOPPEL CERTIFICATES.
         (a) Upon Landlord's written request, Tenant shall execute, acknowledge
and deliver to Landlord a written statement certifying: (i) that none of the
terms or provisions of this Lease have been changed (or if they have been
changed, stating how they have been changed); (ii) that this Lease has not been
canceled or terminated; (iii) the last date of payment of the Base Rent and
other charges and the time period covered by such payment; (iv) that
Landlord is not in default under this Lease (or, if Landlord is claimed to be in
default, stating why); and (v) such other representations or information with
respect to Tenant or the Lease as Landlord may reasonably request or which any
prospective purchaser or encumbrancer of the Property may require. Tenant shall
deliver such statement to Landlord within ten (10) days after Landlord's
request. Landlord may give any such statement by Tenant to any prospective
purchaser or encumbrancer of the Property. Such purchaser or encumbrancer may
rely conclusively upon such statement as true and correct.

         (b) If Tenant does not deliver such statement to Landlord within such
ten (10)-day period, Landlord, and any prospective purchaser or encumbrancer,
may conclusively presume and rely upon the following facts: (i) that the terms
and provisions of this Lease have not been changed except as otherwise
represented by Landlord; (ii) that this Lease has not been canceled or
terminated except as otherwise represented by Landlord; (iii) that not more than
one month's Base Rent or other charges have been paid in advance; and (iv) that
Landlord is not in default under the Lease. In such event, Tenant shall be
estopped from denying the truth of such facts.

Section 11.05. TENANT'S FINANCIAL CONDITION. Within ten (10) days after written
request from Landlord, Tenant shall deliver to Landlord such financial
statements as Landlord reasonably requires to verify the net worth of Tenant or
any assignee, subtenant, or guarantor of Tenant. In addition, Tenant shall
deliver to any lender designated by Landlord any financial statements required
by such lender to facilitate the financing or refinancing of the Property.
Tenant represents and warrants to Landlord that each such financial statement is
a true and accurate statement as of the date of such statement. All financial
statements shall be confidential and shall be used only for the purposes set
forth in this Lease. Provided, however, such financial statements need only
include those prepared in the ordinary course of Tenant's business. In the event
that Tenant becomes a company whose shares are registered under the Securities
Act of 1933, then Tenant shall be required to provide Landlord with financial
statements on forms filed with the Securities and Exchange Commission, and
Landlord may request and receive additional financial information if there are
material changes in Tenant's ownership and/or there is a material change in the
financial status of Tenant.

ARTICLE TWELVE: LEGAL COSTS

Section 12.01 LEGAL PROCEEDINGS. If Tenant or Landlord shall be in breach or
default under this Lease, such party (the "Defaulting Party") shall reimburse
the other party (the "Nondefaulting Party") upon demand for any costs or
expenses that the Nondefaulting Party incurs in connection with any breach or
default of the Defaulting Party under this Lease, whether or not suit is
commenced or judgment entered. Such costs shall include legal fees and costs
incurred for the negotiation of a settlement, enforcement of rights or
otherwise. Furthermore, if any action for

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breach of or to enforce the provisions of this Lease is commenced, the court in
such action shall award to the party in whose favor a judgment is entered, a
reasonable sum as attorneys' fees and costs. The losing party in such action
shall pay such attorneys' fees and costs. Tenant shall also indemnify Landlord
against and hold Landlord harmless from all costs, expenses, demands and
liability Landlord may incur if Landlord becomes or is made a party to any claim
or action (a) instituted by Tenant against any third party, or by any third
party against Tenant, or by or against any person holding any interest under or
using the Property by license of or agreement with Tenant; (b) for foreclosure
of any lien for labor or material furnished to or for Tenant or such other
person; (e) otherwise arising out of or resulting from any act or transaction of
Tenant or such other person; or (d) necessary to protect Landlord's interest
under this Lease in a bankruptcy proceeding, or other proceeding under Title 11
of the United States Code, as amended. Tenant shall defend Landlord against any
such claim or action at Tenant's expense with counsel reasonably acceptable to
Landlord or, at Landlord's election, Tenant shall reimburse Landlord for any
legal fees or costs Landlord incurs in any such claim or action.

Section 12.02. LANDLORD'S CONSENT.

ARTICLE THIRTEEN: MISCELLANEOUS PROVISIONS

Section 13.01. NON-DISCRIMINATION. Tenant promises, and it is a condition to the
continuance of this Lease, that there will be no discrimination against, or
segregation of, any person or group of persons on the basis of race, color. sex,
creed, national origin or ancestry in the leasing, subleasing, transferring,
occupancy, tenure or use of the Property or any portion thereof.

Section 13.02. LANDLORD'S LIABILITY; CERTAIN DUTIES.
         (a) As used in this Lease, the term "Landlord" means only the current
owner or owners of the fee title to the Property or the leasehold estate under a
ground lease of the Property at the time in question. Each Landlord is
obligated to perform the obligations of Landlord under this Lease only during
the time such Landlord owns such interest or title. Any Landlord who transfers
its title or interest is relieved of all liability with respect to the
obligations of Landlord under this Lease to be performed on or after the date of
transfer. However, each Landlord shall deliver to its transferee all funds
that Tenant previously paid if such funds have not yet been applied under the
terms of this Lease.

         (b) Tenant shall give written notice of any failure by Landlord to
perform any of its obligations under this Lease to Landlord and to any ground
lessor, mortgagee or beneficiary under any deed of trust encumbering the
Property whose name and address have been furnished to Tenant in writing.
Landlord shall not be in default under this Lease unless Landlord (or such
ground lessor, mortgagee or beneficiary) fails to cure such non-performance
within thirty (30) days after receipt of Tenant's notice. However, if such
non-performance reasonably requires more than thirty (30) days to cure, Landlord
shall not be in default if such cure is commenced within such thirty (30)-day
period and thereafter diligently pursued to completion.

         (c) Notwithstanding any term or provision herein to the contrary, the
liability of Landlord for the performance of its duties and obligations under
this Lease is limited to Landlord's interest in the Property, and neither the
Landlord nor its partners, shareholders, officers or other principals shall have
any personal liability under this Lease.

Section 13.03. SEVERABILITY. A determination by a court of competent
jurisdiction that any provision of this Lease or any part thereof is illegal or
unenforceable shall not cancel or invalidate the remainder of such provision or
this Lease, which shall remain in full force and effect.

Section 13.04. INTERPRETATION. The captions of the Articles or Sections of this
Lease are to assist the parties in reading this Lease and are not a part of the
terms or provisions of this Lease. Whenever required by the context of this
Lease, the singular shall include the plural and the plural shall include the
singular. The masculine, feminine and neuter genders shall each include the
other. In any provision relating to the conduct, acts or omissions of Tenant,
the term "Tenant" shall include Tenant's agents, employees, contractors,
invitees, successors or others using the Property with Tenant's expressed or
implied permission.

Section 13.05. INCORPORATION OF PRIOR AGREEMENTS; MODIFICATIONS. This Lease is
the only agreement between the parties pertaining to the lease of the Property
and no other agreements are effective. All amendments to this Lease shall be in
writing and signed by all parties. Any other attempted amendment shall be void.

Section 13.06. NOTICES. Wherever notice is required herein by either party, the
same shall not be unreasonably withheld, conditioned or delayed. All notices
required or permitted under this Lease shall be in writing and shall be
personally delivered or sent by certified mail, return receipt requested,
postage prepaid. Notices to Tenant shall be delivered to the address specified
in Section 1.03 above, except that upon Tenant's taking possession of the
Property, the Property shall be Tenant's address for notice purposes. Notices to
Landlord shall be delivered to the address specified in Section 1.02 above. All
notices shall be effective upon delivery. Either party may change its notice
address upon written notice to the other party.

Section 13.07. WAIVERS. All waivers must be in writing and signed by the
waiving party. Landlord's failure to enforce any provision of this Lease or its
acceptance of rent shall not be a waiver and shall not prevent Landlord

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from enforcing that provision or any other provision of this Lease in the
future. No statement on a payment check from Tenant or in a letter accompanying
a payment check shall be binding on Landlord. Landlord may, with or without
notice to Tenant, negotiate such check without being bound to the conditions of
such statement.

Section 13.08. NO RECORDATION. Tenant shall not record this Lease without prior
written consent from Landlord. However, either Landlord or Tenant may require
that a "Short Form" memorandum of this Lease executed by both parties be
recorded. The party requiring such recording shall pay all transfer taxes and
recording fees.

Section 13.09. BINDING EFFECT; CHOICE OF LAW. This Lease binds any party who
legally acquires any rights or interest in this Lease from Landlord or Tenant.
However, Landlord shall have no obligation to Tenant's successor unless the
rights or interests of Tenant's successor are acquired in accordance with the
terms of this Lease. The laws of the state in which the Property is located
shall govern this Lease.

Section 13.10. CORPORATE AUTHORITY; PARTNERSHIP AUTHORITY. If Tenant is a
corporation, each person signing this Lease on behalf of Tenant represents and
warrants that he has full authority to do so and that this Lease binds the
corporation. Within thirty (30) days after this Lease is signed, Tenant shall
deliver to Landlord a certified copy of a resolution of Tenant's Board of
Directors authorizing the execution of this Lease or other evidence of such
authority reasonably acceptable to Landlord. If Tenant is a partnership, each
person or entity signing this Lease for Tenant represents and warrants that he
or it is a general partner of the partnership, that he or it has full authority
to sign for the partnership and that this Lease binds the partnership and all
general partners of the partnership. Tenant shall give written notice to
Landlord of any general partner's withdrawal or addition. Within thirty (30)
days after this Lease is signed, Tenant shall deliver to Landlord a copy of
Tenant's recorded statement of partnership or certificate of limited
partnership.

Section 13.11. JOINT AND SEVERAL LIABILITY. All parties signing this Lease as
Tenant shall be jointly and severally liable for all obligations of Tenant.

Section 13.12. FORCE MAJEURE. If Landlord cannot perform any of its obligations
due to events beyond Landlord's control, the time provided for performing such
obligations shall be extended by a period of time equal to the duration of such
events. Events beyond Landlord's control include, but are not limited to, acts
of God, war, civil commotion, labor disputes, strikes, fire, flood or other
casualty, shortages of labor or material, government regulation or restriction
and weather conditions.

Section 13.13. EXECUTION OF LEASE. This Lease may be executed in counterparts
and, when all counterpart documents are executed, the counterparts shall
constitute a single binding instrument. Landlord's delivery of this Lease to
Tenant shall not be deemed to be an offer to lease and shall not be binding
upon either party until executed and delivered by both parties.

Section 13.14. SURVIVAL. All representations and warranties of Landlord and
Tenant shall survive the termination of this Lease.

Per Separate Agreement

Section 14.03. BROKER'S DISCLOSURE OF AGENCY. Landlord's Broker hereby discloses
to Landlord and Tenant and Landlord and Tenant hereby consent to Landlord's
Broker acting in this transaction as the agent of (check one):

[ ] Landlord exclusively; or
[X] both Landlord and Tenant.

Section 14.04. NO OTHER BROKERS. Tenant represents and warrants to Landlord that
the brokers named in Section

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1.08 above are the only agents, brokers, finders or other parties with whom
Tenant has dealt who are or may be entitled to any commission or fee with
respect to this Lease or the Property.

ADDITIONAL PROVISIONS MAY BE SET FORTH IN A RIDER OR RIDERS ATTACHED HERETO OR
IN THE BLANK SPACE BELOW. IF NO ADDITIONAL PROVISIONS ARE INSERTED, PLEASE DRAW
A LINE THROUGH THE SPACE BELOW.

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Landlord and Tenant have signed this Lease at the place and on the dates
specified adjacent to their signatures below and have initialed all Riders which
are attached to or incorporated by reference in this Lease.

                                      "LANDLORD"

Signed on March 9, 1999               PANATTONI DEVELOPMENT COMPANY, OR ASSIGNEE

at Sacramento, CA                     By: /s/ Carl D. Panattoni
                                          --------------------------------------
                                              Carl D. Panattoni

                                      Its:   Partner
                                          --------------------------------------

                                      By: /s/ James R. Carlsen
                                          --------------------------------------
                                              James R. Carlsen

                                      Its:   Partner
                                          --------------------------------------

                                      "TENANT"

Signed on Feb. 22, 1999               DICK'S CLOTHING & SPORTING GOODS, INC.

at                                    By: /s/ Joseph Queri, Jr.
  ---------------------                  ---------------------------------------
                                              Joseph Queri, Jr.

                                      Its:  Vice President of Real Estate
                                          --------------------------------------

IN ANY REAL ESTATE TRANSACTION, IT IS RECOMMENDED THAT YOU CONSULT WITH A
PROFESSIONAL, SUCH AS A CIVIL ENGINEER, INDUSTRIAL HYGIENIST OR OTHER PERSON
WITH EXPERIENCE IN EVALUATING THE CONDITION OF THE PROPERTY, INCLUDING THE
POSSIBLE PRESENCE OF ASBESTOS, HAZARDOUS MATERIALS AND UNDERGROUND STORAGE
TANKS.

THIS PRINTED FORM LEASE HAS BEEN DRAFTED BY LEGAL COUNSEL AT THE DIRECTION OF
THE SOUTHERN CALIFORNIA CHAPTER OF THE SOCIETY OF INDUSTRIAL AND OFFICE
REALTORS, INC. NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE SOUTHERN
CALIFORNIA CHAPTER OF THE SOCIETY OF INDUSTRIAL AND OFFICE REALTORS, INC, ITS
LEGAL COUNSEL, THE REAL ESTATE BROKERS NAMED HEREIN, OR THEIR EMPLOYEES OR
AGENTS, AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT OR TAX CONSEQUENCES OF THIS
LEASE OR OF THIS TRANSACTION. LANDLORD AND TENANT SHOULD RETAIN LEGAL COUNSEL TO
ADVISE THEM ON SUCH MATTERS AND SHOULD RELY UPON THE ADVICE OF SUCH LEGAL
COUNSEL.

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                               ADDENDUM TO LEASE

                                 BY AND BETWEEN

             PANATTONI DEVELOPMENT COMPANY OR ASSIGNEE, "LANDLORD"
                                      and
                DICK'S CLOTHING & SPORTING GOODS, INC., "TENANT"

1.   BASE RENT

The Base Monthly Rent, On an "Absolute Net" basis, shall be:

         Months 1 - 60                      $107,723
         Months 61 - 120                    $115,810
         Months 121 - 180                   $123,897
         Months 181 - 240                   $131,985

In addition to Base Rent, Tenant shall be responsible for its pro-rata share of
the Other Periodic Payments as set forth in Section 1.12(b) of the Lease.

2.   SECURITY DEPOSIT

Tenant shall pay a security deposit of $239,708 that will be applied by
Landlord as follows:

$107,723 (first month's rent) to be applied to the Month 1 Base Rent, and
$131,985 (last months rent) to be retained as a security deposit. The security
deposit shall be remitted to Landlord upon Landlord's purchase of the subject
fifty acre parcel.

Said Security Deposit shall be returned to Tenant once Tenant's Net Worth
becomes greater than $100,000,000 and Tenant's Income Statement shows
profitability for three (3) consecutive years.

3.   OCCUPANCY DATE

Landlord shall work to complete the Property by December 1, 1999 ("Target
Date"). The Target Date shall be subject to the following milestones, 1) the
Lease signed by all parties by February 10, 1999, and 2) mutual approval of
plans and specifications (design documents) for the subject facility by March 1,
1999. The Commencement Date shall be adjusted for any deviations from the
milestones above any delays caused by Tenant and any event(s) of Force Majeure
per Section 13.12 of this Lease. The cumulative Force Majeure delay shall be
limited to a maximum of thirty (30) days.

Tenant shall be provided early occupancy by November 1, 1999 for the purpose of
installing racking, conveyor systems, and other Tenant fixtures, so long as said
early occupancy does not unnecessarily interfere with construction
activities/progress.

4.   LATE PENALTY

Landlord shall pay Tenant a penalty equal to $10,000 per day for every day late
after December 1, 1999. Said date shall be adjusted for each day of delay caused
by Tenant and for events of force majeure. However, a force majeure adjustment
shall not exceed thirty (30) days.

5.   TENANT IMPROVEMENTS/CONSTRUCTION OF PREMISES

Landlord shall provide a base building and improvements per mutually agreeable
specifications to be attached as an Exhibit to the Lease.

<PAGE>

6.   RENEWAL OPTIONS

Tenant shall be granted four (4) five year options to extend the lease term with
twelve (12) months prior written notice. Prior to the execution of the lease,
Tenant shall select one of the following options regarding the base rental for
the option periods:

     (a)  The market rent at the time of extension as determined by good faith
          negotiation or arbitration if necessary, or

     (b)  Fixed rental rate subject to a $.25 per square foot per annum increase
          every sixty (60) months.

In no event will the rent be less than the Base Rent in effect at the end of the
original lease term or previous extension period.

7.   CONTINGENCIES

This Lease is contingent on the review of the title matters associated with the
property.

8.   COMMISSIONS

Landlord shall pay Eagan Real Estate a leasing commission per the terms of a
separate agreement. Landlord shall indemnify and hold Tenant harmless from any
claims for any brokers' commissions.

9.   FINANCING

A copy of Landlord's loan commitment letter from the selected lender shall be
presented to Tenant prior to February 26, 1999.

<PAGE>

THIS ADDENDUM IS UNDERSTOOD AND AGREED UPON BY:

LANDLORD:  PANATTONI DEVELOPMENT COMPANY

           By: /s/ Carl D. Panattoni                       3/9/99
              ---------------------------------            ------------
                   Carl D. Panattoni                       Date
                   Partner

           By: /s/ James R. Carlsen                        3/9/99
              ---------------------------------            ------------
                   James R. Carlsen                        Date
                   Partner

TENANT:    DICK'S CLOTHING & SPORTING GOODS, INC.

           By: /s/ Joseph Queri, Jr.                       2/22/99
              ---------------------------------            -----------
                Joseph Queri, Jr.                          Date

           Its: Vice President of Real Estate
               --------------------------------

<PAGE>

                           HAZARDOUS MATERIALS RIDER
                           -------------------------

                     DICK'S CLOTHING & SPORTING GOODS, INC.

Tenant shall (i) not cause or permit any Hazardous Material to be brought upon,
kept or used in or about the Premises by Tenant, its agents, employees,
contractors or invitees, without the prior written consent of Landlord (which
consent Landlord shall not unreasonably withhold or delay as long as Tenant
demonstrates to Landlord's reasonable satisfaction that such Hazardous Material
is necessary or useful to Tenant's business and will be used, kept and stored in
a manner that complies with all laws relating to any such Hazardous Material so
brought upon or used or kept in or about the Premises). If Tenant breaches the
obligations stated in the preceding sentence, or if the presence of Hazardous
Material on the Premises caused or permitted by Tenant results in contamination
of the Premises by Hazardous Material or otherwise occurs for which Tenant is
legally liable to Landlord for damage resulting therefrom, then Tenant shall
indemnify, defend and hold Landlord harmless from any and all claims, judgments,
damages, penalties, fines, costs, liabilities or losses (including, without
limitation, diminution on value of the Premises, damages for the loss or
restrictions on use of rentable or usable space or of any amenity of the
Premises, damages arising from any adverse impact on marketing of the Premises,
and reasonable sums paid in settlement of claims, attorneys' fees, consultant
fees and expert fees) which arise during or after the lease term as a result of
such contamination. The indemnification set forth herein shall run to the
benefit of any bank or other lender to which Landlord or Landlord's successors
and assigns may grant a security interest in the Property and or assigns may
grant a security interest in the Property and or the Premises. This
indemnification of Landlord by Tenant includes, without limitation, costs
incurred in connection with any investigation of site conditions or any cleanup,
remedial, removal or restoration work required by any federal, state or local
governmental agency or political subdivision because of Hazardous Material
present in the soil or ground water on or under the Premises caused or permitted
by Tenant, its agents, employees, contractors or invitees. Without limiting the
foregoing, if the presence of any Hazardous Material on the Premises caused or
permitted by Tenant results in any contamination of the Premises, Tenant shall
promptly take all actions at its sole expense as are necessary to return the
Premises to the condition existing prior to the introduction of any such
Hazardous Material to the Premises; provided that Landlord's approval of such
actions shall first be obtained, which approval shall not be unreasonably
withheld so long as such actions would not potentially have any material adverse
long-term or short-term effect on the Premises.

Landlord represents that to the best of their knowledge, they are not aware of
the existence of any hazardous material or related environmental concerns.
Furthermore, Landlord shall indemnify Tenant for any breach of this
representation.

As used herein, the term "Hazardous Material" means any hazardous or toxic
substance, material or waste which is or becomes regulated by any local
governmental authority, the State of Pennsylvania or the United States
Government. The term "Hazardous Material" includes, without limitation, any
material or substance which is (i) defined as a "hazardous waste," "extremely
hazardous waste" or "restricted hazardous waste" under Pennsylvania Health and
Safety Code.

Administrative Code, Division 4, Chapter 20; (viii) designated as a "hazardous
substance" pursuant to Section 311 of the Federal Water Pollution Control Act
(33 U.S.C. Section 1317); (ix) defined as a "hazardous waste" pursuant to
Section 1004 of the Federal Resource Conservation and Recovery Act, 42 U.S.C.
Section 6901 et seq. (42 U.S.C. Section 6903); (x) defined as a "hazardous
substance" pursuant to Section 101 of the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. Section 9601 et seq. (42 U.S.C.
Section 9601); or (xi) or any substance requiring remediation under any federal,
state, municipal or other governmental statute, ordinance, rule, regulation or
policy.

<PAGE>

AGREED BY:

                           ("TENANT")

TENANT:    DICK'S CLOTHING & SPORTING GOODS, INC.

BY:  /s/ Joseph Queri, Jr.                       DATE:   2/22/99
   -------------------------------------              ----------------
         JOSEPH QUERI, JR.

ITS:   VICE PRESIDENT OF REAL ESTATE
    ------------------------------------

                        ("LANDLORD")

LANDLORD:    PANATTONI DEVELOPMENT COMPANY

BY:  /s/ Carl D. Panattoni                       DATE:   3/9/99
   -------------------------------------              ----------------
         CARL D. PANATTONI
         PARTNER

BY:  /s/ James R. Carlsen                        DATE:   3/9/99
   -------------------------------------              ----------------
         JAMES R. CARLSEN
         PARTNER

<PAGE>

                                FIRST AMENDMENT

                           TO SINGLE-TENANT NET LEASE
                             DATED FEBRUARY 4, 1999
                                 BY AND BETWEEN

                PANATTONI DEVELOPMENT COMPANY (SINCE ASSIGNED TO
                       WEST PENN INVESTMENTS) "LANDLORD"
                                       AND
              DICK'S CLOTHING AND SPORTING GOODS (SINCE CHANGED TO
                       "DICK'S SPORTING GOODS") "TENANT"

         To the extent of any inconsistencies or contradictions between the
terms and conditions of the Lease and this Amendment, the terms and conditions
contained herein shall supercede and take precedence over those contained in the
Lease.

         The parties above acknowledge and hereby agree that the Lease as
referenced above, the Lease Riders, the Addendum and the Exhibits attached
thereto are hereby amended as follows:

          1.   SECTION 1.05. LEASE TERM: This amendment confirms that the
               commencement date ofthe lease is December 1, 1999.

          2.   PARAGRAPH 1 OF THE ADDENDUM TO LEASE: Based on the attached
               Exhibit "A" to this amendment, the Base Monthly Rent shall be
               adjusted to the following:

                        Months 1 - 60:          $111,569
                        Months 60 - 120:        $119,654
                        Months 121 - 180:       $127,739
                        Months 181-240:         $135,824

          3.   PARAGRAPH 6 OF THE ADDENDUM TO LEASE: The Base Monthly Rent for
               the option periods shall be adjusted in accordance with paragraph
               6 of the Lease subject to the revised monthly rental amounts per
               paragraph 2 of this amendment.

         The parties have executed this Amendment as of the dates signed below.

LANDLORD:                               TENANT:

West Penn Investments, LLC              Dick's Sporting Goods, Inc.

By: /s/ James R. Carlsen                By: /s/ Michael R. ________?
   ----------------------------            ------------------------------

Its:  Managing Member                   Its:  CFO
    ---------------------------             -----------------------------

Date:    1-20-00                        Date:  1/4/00
     --------------------------              ----------------------------

<PAGE>

1/3/00                          EXHIBIT "A"
10:07 AM                   DICK'S SPORTING GOODS

<TABLE>
<CAPTION>

         C.O.
         #        Description                                                                   Cost
        ------------------------------------------------------------------------------------------------------------
<S>      <C>      <C>                                                                           <C>
         2        Install grooved check valves for sprinkler risers                             $        10,388.00
         3        Install flag pole at entry                                                    $         3,148.00
         6        Conveyor electrical panel load Increase                                       $        75,236.00
         8        Install monument signage                                                      $           689.00
         9        Increase roof ballast from 10 lbs to 12 lbs.                                  $        30,539.00
         10       Provide dishwasher and counters                                               $         5,696.00
         72       Install mezzanine footings                                                    $        40,000.00
         15       Pour back of mezzanIne footing "diamonds"                                     $         1,750.00
         16       Revise columns to accommodate footings                                        $         4,250.00
         18       Provide sidelIghts at interior doors                                          $         1,032.00
         19       Retaining wall at break area                                                  $         7,670.00
         20       Install bumpers at stone lot (west side)                                      $         3,303.00
         21       Paint interior columns                                                        $         3,831.00
         23       Furnish fire extinguishers                                                    $         3,936.00
         25       Install trash door for conveyor                                               $         3,191.00
         26       Sprinkler/Lighting at Mezzanine                                               $       206,647.00

                  TOTAL                                                                         $       401,306.00
                                                                                                ==================
</TABLE>

                  RENT CALCULATION:
                  $401,306.00 times 11.5% = $46,150.19/annum

<PAGE>

                                FIRST AMENDMENT

                           TO SINGLE-TENANT NET LEASE
                             DATED FEBRUARY 4, 1999
                                 BY AND BETWEEN

                PANATTONI DEVELOPMENT COMPANY (SINCE ASSIGNED TO
                       WEST PENN INVESTMENTS) "LANDLORD"
                                      AND
              DICK'S CLOTHING AND SPORTING GOODS (SINCE CHANGED TO
                       "DICK'S SPORTING GOODS") "TENANT"

         To the extent of any inconsistencies or contradictions between the
terms and conditions of the Lease and this Amendment, the terms and conditions
contained herein shall supercede and take precedence over those contained in the
Lease.

         The parties above acknowledge and hereby agree that the Lease as
referenced above, the Lease Riders, the Addendum and the Exhibits attached
thereto are hereby amended as follows:

          1.   SECTION 1.05. LEASE TERM: This amendment confirms that the
               commencement date of the lease is December 13 1999.

          2.   PARAGRAPH I OF THE ADDENDUM TO LEASE: Based on the attached
               Exhibit "A" to this amendment, the Base Monthly Rent shall be
               adjusted to the following:

                        Months 1-60:            $111,569
                        Months 60 - 120:        $119,654
                        Months 121 - 180:       $127,739
                        Months 181-240:         $135,824

          3.   PARAGRAPH 6 OF THE ADDENDUM TO LEASE: The Base Monthly Rent for
               the option periods shall be adjusted in accordance with paragraph
               6 of the Lease subject to the revised monthly rental amounts per
               paragraph 2 of this amendment.

          The parties have executed this Amendment as of the dates signed below.

LANDLORD:                               TENANT:

West Penn Investments, LLC              Dick's Sporting Goods, Inc.

By:                                     By:
   --------------------------              ---------------------------------

Its:  Managing Member                   Its:    CFO
    -------------------------               --------------------------------

Date:   1-20-00                         Date:    1-4-00
     ------------------------                -------------------------------

<PAGE>

                                  EXHIBIT "A"
                             DICK'S SPORTING GOODS

<TABLE>
<CAPTION>

         C.O.
         #        Description                                                          Cost
        --------------------------------------------------------------------------------------------------
<S>      <C>      <C>                                                           <C>
         2        Install grooved check valves for sprinkler risers             $        10,388.00
         3        Install flagpole at entry                                     $         3,148.00
         6        Conveyor electrical panel load increase                       $        75,236,00
         8        Install monument signage                                      $           689.00
         9        Increase roof ballast from 10 lbs to 12 lbs.                  $        30,539.00
         10       Provide dishwasher and counters                               $         5,696.00
         12       Install mezzanine footings                                    $        40,000,00
         15       Pour back of mezzanine footing "diamonds"                     $         1,750.00
         16       Revise columns to accommodate footings                        $         4,250.00
         18       Provide sidelights at interior doors                          $         1,032.00
         19       Retaining wall at break area                                  $         7,670.00
         20       Install bumpers at stone lot (west side)                      $         3,303.00
         21       Paint interior columns                                        $         3,831.00
         23       Furnish fire extinguishers                                    $         3,936.00
         25       Install trash door for conveyor                               $         3,191.00
         26       Sprinkler/Lighting at Mezzanine                               $       206,647.00

                  TOTAL                                                         $       401,306.00
                                                                                ==================
</TABLE>

                  RENT CALCULATION:
                  $401,306.00 times 11.5% = $46,150.19/annum

<PAGE>

                           PURCHASE OPTION AGREEMENT

         This Agreement is hereby made this 5th day of March, 1999, by and
between PANATTONI DEVELOPMENT COMPANY, a California sole proprietor with offices
at 8401 Jackson Road, Sacramento, California 95926 ('Optionor') and DICK'S
CLOTHING & SPORTING GOODS, INC., a Delaware corporation with offices at 400
Fairway Drive, Coraopolis, Pennsylvania 15108 ("Optionee")

                                  WITNESSETH:

         WHEREAS, the parties hereby are parties to a lease dated February 4,
1999 (the "Lease") for the lease of a 388,100 square foot warehouse and
distribution facility (the 'Facility') located on an approximately 50 (greater
or less than) acre tract of land (the "Land") at the I-70 Industrial Park in
Westmoreland County, Pennsylvania (the Facility and the Land are together
referred to as the "Property'); and

         WHEREAS, Optionee desires to option from Optionor and Optionor desires
to grant to Optionee the option to purchase the Property (the 'Option") upon the
terms and conditions and in accordance with the procedures herein contained.

         NOW THEREFORE, in consideration of the mutual covenants and conditions'
herein contained and intending to be legally bound thereby, the parties hereto
agree as follows:

         1. GRANT. Optionor hereby grants to Optionee the Option to acquire the
Property.

         2. EXERCISE. The Option may be exercised at any time prior to the
expiration of ten (10) days from Optionor's substantial completion of the
Facility as provided under the Lease.

         3. PRICE. The purchase price in the event of an exercise of this Option
shall be Optionor's costs plus $3.00 per square foot ($13,909,698 plus the
costs incurred by Optionor in securing long-term financing prior to Optionee's
notice of intent to purchase the Property).

         4. NOTICE OF EXERCISE. In order to exercise this Option, Optionee must
provide Optionor written notice (the "Notice') of optionee's intention to
exercise this Option, which Notice shall be delivered to Optionor via Federal
Express, or similar overnight service, no later than October 1, 1999. The Notice
shall specify a closing date on the purchase of the Property, which shall be not
less than ten (10) days from the date of Notice nor later than ten (10) days
after the Facility is substantially complete in accordance with the Lease. The
Notice shall be accompanied by a proposed real estate purchase contract executed
by Optionee and containing such terms as are reasonable and customary for the
purchase of industrial or commercial real estate in Westmoreland County,
Pennsylvania. Optionor shall use its reasonable good faith in determining
whether the proposed purchase contract is acceptable and in negotiating any

<PAGE>

necessary revisions when the contract is acceptable to Optionor, Optionor shall
execute the real estate purchase contract and return a fully executed
counterpart to Optionee.

         5. CLOSING.  At closing on the sale of the Property, Optionor shall
convey the Property to Optionee by a General Warranty Deed and such as is
insurable, without exception (except as may be agreed in writing by the
parties) by a nationally rated title insurance company. Notwithstanding anything
to the contrary in this Paragraph 5, Optionee agrees to accept the Property
subject to any exceptions that the Property was subject to at the time it was
purchased by Optionor.

         6. ASSIGNABILITY. This Agreement shall be assignable by Optionee
without the consent of Optionor.

In witness whereof, the parties hereto have set their hands and seals this day
of 1999.

WITNESS:                                PANATTONI DEVELOPMENT COMPANY

------------------------------        By: /s/ Carl D. Panattoni
                                         --------------------------------
                                              Carl D. Panattoni, Partner

------------------------------        By: /s/ James R. Carlsen
                                         --------------------------------
                                               James R. Carlsen, Partner

ATTEST.                               DICK'S CLOTHING & SPORTING
                                      GOODS, INC.

-------------------------------       By: /s/ Joseph Queri
                                         ----------------------------------
                                              Joseph Queri, Jr.,
                                              Vice President of Real Estate

<PAGE>

                           ASSIGNMENT AND ASSUMPTION
                                       OF
                                OPTION AGREEMENT

This Assignment and Assumption of Option Agreement ("Assignment") is made this
5th day of March, 1999, by and between Dick's Clothing and Sporting Goods, Inc.,
a New York corporation ("Assignor") and Panattoni Development Company (or
Assignee), a sole proprietor ("Assignee").

                                    RECITALS
                                    --------

A. Dick's Clothing and Sporting Goods, Inc., as Optionee, entered into that
certain Agreement with Westmoreland County, as Optionor, dated November 12,
1998, attached hereto as Exhibit "A" and made a part hereof ("Agreement"),
wherein Optionee was granted the exclusive right to purchase certain real
property for a period of one (1) year.

B. For good and valuable consideration, receipt and sufficiency of which is
hereby acknowledged, Dick's Clothing and Sporting Goods, Inc., as Assignor,
intends to assign and transfer to Assignee, all right, title, and interest of
Assignor in the Agreement and Assignee agrees to accept all right, title, and
interest of Assignor in the Agreement subject to the terms and conditions of
this Assignment and assume, fulfill, perform, and observe each and every
condition, covenant, and obligation of Assignor under the Agreement.

C. The parties agree that this assignment is intended to be an absolute, present
assignment from Assignor to Assignee.

                                   AGREEMENT
                                   ---------

1.   ASSIGNMENT. Assignor hereby assigns and transfers to Assignee all right,
     title, and interest in the Agreement, and Assignee accepts from Assignor
     all right, title, and interest, subject to the terms and conditions set
     forth in this Assignment, in and to the Agreement.

2.   ASSUMPTION. Assignee assumes and agrees to perform and fulfill all the
     terms, covenants, conditions, and obligations required to be performed and
     fulfilled by Assignor under the Agreement.

3.   WARRANTIES AND COVENANTS.

     3.1  WARRANTIES OF ASSIGNOR.

                                       1
<PAGE>

          3.1.1     Assignor hereby warrants and represents to Assignee that
                    Assignor is a holder of the rights, title, and interest in
                    the Agreement, and has good right to sell, assign, transfer,
                    and set over the same and to grant to and confer upon
                    Assignee, the rights, interest, powers, and authorities
                    herein granted and conferred.

          3.1.2     Other than as required by the terms and conditions in the
                    Agreement, Assignor has neither made, nor permitted to be
                    made, any Assignment other than this Assignment of any of
                    its rights relating to the Agreement to any person or
                    entity.

          3.1.3     No action has been brought or threatened which in any way
                    would interfere with the right of Assignor to execute this
                    Assignment and perform all of Assignor's obligations
                    contained herein.

     3.2  COVENANTS OF ASSIGNEE. Assignee hereby covenants and agrees with
          Assignor that Assignee shall assume, fulfill, perform, and observe
          each and every material condition and obligation of Assignor contained
          in the Agreement and indemnify and hold Assignor harmless from any
          liability arising from any breach thereof by Assignee.

4    GENERAL PROVISIONS.

     4.1  SUCCESSORS AND ASSIGNS. This Assignment shall inure to the benefit of
          and be binding upon Assignor and Assignee and their respective heirs,
          executors, legal representatives, successors, and assigns. Whenever a
          reference is made to Assignor or Assignee, such reference shall be
          deemed to include a reference to the heirs, executors, legal
          representatives, successors, and assigns of Assignor or Assignee.

     4.2  TERMINOLOGY IN CAPITALIZED TERMS. All personal pronouns used in this
          Assignment, whether used in the masculine, feminine, or neutral
          gender, should include all other genders, and the singular shall
          include the plural, and vice versa. Titles of sections are for
          convenience only and neither limit nor amplify the provisions of this
          Assignment.

     4.3  SEVERABILITY. If any provision of this Assignment or the application
          thereof to any person or circumstance shall be invalid or
          unenforceable to any extent, the remainder of this Assignment and the
          application of such provisions to other persons or circumstances shall
          not be affected and shall be enforced to the greatest extent allowed
          by law.

     4.4  APPLICABLE LAW. This Assignment shall be interpreted, construed, and
          enforced according to the laws of the State of Pennsylvania.

     4.5  NO ORAL MODIFICATIONS. Neither this Assignment nor any provisions
          hereof may be changed, waived, discharged, or terminated orally, but
          only by an instrument in

                                       2
<PAGE>

          writing signed by the party against whom enforcement of the change,
          waiver, discharge, or termination is sought.

     4.6  COUNTERPARTS. This Assignment may be executed in any number of
          counterparts all of which taken together shall constitute one and the
          same instrument.

IN WITNESS WHEREOF, this Assignment has been executed as of the day and year
first written above.

ASSIGNOR:

DICK'S CLOTHING AND SPORTING GOODS, INC.,
A NEW YORK CORPORATION

By: /s/ Joseph Queri
   --------------------------------
   Name:   Joseph Queri, Jr.
   Title:  Senior Vice President

ASSIGNEE:

PANATTONI DEVELOPMENT COMPANY (or Assignee)

By:  James R. Carlsen
   --------------------------------
Name:     James R. Carlsen
Title:    Owner

                                       3
<PAGE>

                                  EXHIBIT "A"

                                OPTION AGREEMENT

                                       1

<PAGE>

                                                                Revised 10/29/08
                                    AGREEMENT
                                    ---------

         THIS AGREEMENT, made this 12th day of November, 1998, between the
WESTMORELAND COUNTY INDUSTRIAL DEVELOPMENT CORPORATION, incorporated under the
laws of the Commonwealth of Pennsylvania, having its principal offices in the
City of Greensburg, County of Westmoreland, Commonwealth of Pennsylvania,
hereinafter called OPTIONOR, and DICK'S CLOTHING & SPORTING GOODS, a
corporation organized and existing under the laws of the State of New York,
having its principal offices in 400 Fairway Drive, Coraopolis, Commonwealth of
Pennsylvania, hereinafter called OPTIONEE:

         WITNESSETH, that said Optionor, for itself, its successors and assigns,
in consideration of the sum of ONE THOUSAND DOLLARS ($1,000.00) to them in hand
paid, the receipt of which is hereby acknowledged as well as in consideration of
the covenants and conditions hereinafter mentioned, hereby grant to Optionee the
exclusive Option to purchase for the price and on the terms and conditions
hereinafter mentioned, the following parcel of land:

         ALL THAT CERTAIN TRACT OF LAND situate in the Township of South
         Huntingdon, County of Westmoreland, Commonwealth of Pennsylvania, being
         Parcel No.7 in the 1-70 INDUSTRIAL PARK SUB-DIVISION PLAN to be
         recorded. Both Optionor and Optionee understand that a subdivision of
         the property would have to be performed by the Optionor at the
         Optionor's cost and expense and the subdivision would have to be
         approved by South Huntingdon Township and Westmoreland County
         Department of Planning and Development prior to closing on the sale of
         the property if the Option is exercised by the Optionee. The specific
         plan of subdivision must be reviewed and approved by both Optionor and
         Optionee.

         CONTAINING a parcel of land approximately 50 acres in size, as
         indicated on marked drawing Exhibit "A," " attached hereto and made a
         part of hereof.

         Being part of the same parcel of land conveyed by Charles A. Rhodes and
         Dolores J. Rhodes, his wife, situate in the Township of South
         Huntingdon to Westmoreland County Industrial Development Corporation by
         deed dated October 9, 1991 and recorded in the Office of the Recorder
         of Deeds of Westmoreland County,

<PAGE>

         Pennsylvania in DBV 3052, pages 518-521. Also being the part of the
         same parcel of land conveyed by John Thurman Painter, Jr. and Judith W.
         Painter, his wife, situate in the Township of South Huntingdon to
         Westmoreland County Industrial Development Corporation by deed dated
         October 30, 1991 and recorded in the Office of the Recorder of Deeds of
         Westmoreland County, Pennsylvania in DBV 3056, pages 616-618.

If the aforementioned right to purchase is not exercised by the Optionee as
hereinafter mentioned, Optionor may retain the said Optionee's "Option Money" in
the amount of ONE THOUSAND DOLLARS ($1000.00).

         The aforementioned right to purchase may be exercised by the Optionee
by giving written notice in the manner hereinafter provided of its intention to
the Optionor within a period of twelve (12) months from the date of this
Agreement to the effect that the Optionee will purchase said parcel of land for
the following price and on the following terms and conditions:

         1. The purchase price will be EIGHT HUNDRED THOUSAND and 00/100 DOLLARS
($800,000.00), payable as follows: The "Option Money" in the amount of ONE
THOUSAND DOLLARS ($1000.00) paid at the time of execution of this Agreement and
the "Down Money" in the amount Of FORTY THOUSAND and 00/100 DOLLARS
($40,000.00), paid at the time such right to purchase is exercised, which shall
be placed by the Optionee with an escrow agent to be chosen by Optionee and with
evidence being provided to Optionor that the Down Money has been placed with the
escrow agent, and shall be pad of the purchase price and the balance of SEVEN
HUNDRED FIFTY-NINE THOUSAND and 00/100 DOLLARS ($759,000.00), shall be paid upon
delivery of Deed at final settlement.

         2. The premises are to be conveyed free and clear of all liens,
encumbrances and

                                       2

<PAGE>

easements, and the title is to be good and marketable and such as will be
insured by any reputable title insurance company in the Commonwealth at
Pennsylvania at its regular rates, free of exceptions. If the Optionor is unable
to convey good and marketable title free and clear of all liens, encumbrances
and easements, and insurable as aforesaid, the Optionee may elect to take such
title as the Optionor can convey, without abatement of price, or to be repaid
all monies which have been paid on account (including the initial "Option Money"
payment and the "Down Money" payment referred to above).

         3. The Optionee and Optionor will agree to pay The Pennsylvania Realty
Transfer Tax and the Local Realty Transfer Tax based upon the purchase price of
the herein described property by splitting the total due equally.

         4. Real Estate Taxes for the current year, water and sewer usage
charges, if any are due or applicable at the time of settlement, shall be
apportioned on a pro rata basis at, and as of the date of settlement. All
applicable real estate taxes shall be prorated on a fiscal basis as of the date
levied (County and Local levied an January 1st of each year and School levied
on July 1st of each year). All taxes and charges, if any are due, shall be
considered paid at discount rate.

         5. The Optionor shall give Optionee immediate exclusive possession of
the premises with the Deed at the time of settlement.

         6. The Optionor agrees, that upon payment of the Down Money at the time
the Optionee exercises its option pursuant to this Agreement, to proceed
expeditiously with the preparation and submission of a Plan of Subdivision for
the property which is the subject of this Agreement, after review and approved
by the Optionee, in order to seek the review

                                       3

<PAGE>

and approval of said Plan of Subdivision by the Supervisors of the Township of
South Huntingdon, which shall be done at the sole cost and expense of the
Optionor. The Optionor agrees to close with the Optionee as soon as possible
after the approval of the Plan of Subdivision by the Supervisors of the Township
of South Huntingdon. It is agreed that the final settlement shall be within a
sixty (60) day period of the day the optionee gives written notice to the
Optionor exercising the Option or when the Plan of Subdivision is approved if
prior to the sixty (60) day period.

         7. At the time of settlement, Optionor shall deliver in the Optionee, a
General Warranty Deed for the herein described property in fee simple, free and
clear of all liens and encumbrances as aforesaid. The Deed, prepared at the
Optionor's expense by the Optionor's Solicitor, shall be satisfactory in form to
the Optionee and the description for the property utilized shall be based upon
the courses and distances set forth on the applicable recorded plan of
subdivision or a survey prepared at the direction of the Optionee with the
choice to be made solely by the Optionee.

         8. The Optionee shall have the right to cancel this Agreement if prior
to the time of settlement hereunder the Optionee's proposed use of the premises
for distribution/warehousing or manufacturing shall be prohibited or restricted
by the provisions of any zoning or other law, ordinance, or regulation then in
force or in the event that additional restrictions are adopted by the Optionor
which are unacceptable to the Optionee, then in that event, at the Optionee's
sole discretion this Agreement may be canceled and all monies paid hereunder
shall be returned. In the event of any such cancellation, the Optionor shall
repay to the Optionee all monies which have been paid on

                                       4

<PAGE>

account hereunder, including the initial "Option Money" payment and the "Down
Money" payment referred to above.

         9. It is understood and agreed between the parties hereto, that during
the option period, the Optionee shall have the opportunity, right and privilege
to perform all necessary site specific evaluations of the herein described
property, such as but not limited to, environmental conditions, surface and
subsurface conditions, availability and sufficiency of all required utilities,
at its own risk, cost and expense. The Optionee agrees to repair or correct any
damage or change in condition of the herein described property, at its own cost
and expense, caused by such site specific evaluation if the Optionee does not
exercise its option to purchase the herein described property. Optionee further
agrees to provide copies of such reports generated from the site specific
evaluation process only to the Optionor if the Optionee does not exercise its
option to purchase the herein described property. It is understood by the
Optionor and Optionee that any and all information concerning the condition of
the herein described property and the required quality and quantity of all
utilities required for the type and use of the proposed building is to be
determined solely by the Optionee and information and documentation provided to
the Optionee or its agents by the Optionor for assistance only and cannot be
relied upon by the Optionee or its agents or contractors. The Optionee
understands it has the sole responsibility to determine whether the herein
described property and existing utilities are suitable for its desired building
and use thereof by the Optionee. If the site specific evaluations performed by
the Optionee reveal that the Optionee's proposed building use will be
prohibited, the Optionee shall have the right to cancel the Agreement and all
monies

                                       5

<PAGE>
paid to the Optionor by the Optionee shall be returned by the Optionor to the
Optionee.

         10. The Optionor hereby represents to the Optionee that the herein
described property has been surveyed and is depicted on a Plan of Subdivision
that is or will be recorded in the Recorder of Deeds Office of Westmoreland
County, Pennsylvania. If the Optionee requires a specific survey of the herein
described property for use by its contractor, lending institution, and/or title
insurance company, the Optionee has the obligation to secure such survey at its
own effort and expense.

         11. If after exercise of the purchase Option herein granted, this
transaction shall not be completed because of a default on the part of the
Optionee, the Optionor may retain the Optionee's "Option Money" payment and
"Down Money" payment as liquidated damages, and this Agreement shall be null and
void. The right of retention of such sums shall constitute the Optionor's
exclusive remedy for breach of the agreement by the Optionee.

         12. The Optionor and Optionee agree that the Optionor shall be solely
responsible to pay the real estate commission or brokerage fee which is due to
NAI/Pyramid Brokerage Company Inc. and Gold & Company collectively referred to
as Broker pursuant to a separate agreement by and between Optionor and Broker.
Optionor and Optionee hereby represent, covenant and warrant to each other that
there are no other brokers or agents who brought the parties together or
assisted in the negotiations of this Option Agreement. The Optionor agrees to
hold harmless, defend and indemnify the Optionee from any responsibility,
obligation or liability to pay a commission fee to Broker.

         13. Optionee retains the right to assign this Option Agreement and the
rights and

                                       6

<PAGE>

obligations contained herein to assignee of the Optionee's choice without
requiring the consent of the Optionor provided that the Optionee provides to the
Optionor written confirmation that the Optionee's assignee agrees to be bound by
the terms and conditions of this Agreement.

         14. If the Optionee exercises its option under this Option Agreement,
at the time of closing on the purchase of the property by the Optionee, the
Optionor agrees to deliver to Optionee and Optionee's title insurer a seller's
affidavit in order for Optionee's title insurer to issue in favor of Optionee
the ALTA Policy in an amount not less then the purchase price insuring
Marketable Title to the Property, Optionor further agrees to provide to Optionee
an affidavit concerning those facts set forth on Exhibit "C" warranting,
guaranteeing and representing to Optionee its actual personal knowledge of those
facts set forth on Exhibit "C."

         15. Optionor agrees to arrange with Columbia Gas of Pennsylvania, Inc.
for the relocation of the existing gas line from its present location, which
traverses through the property, to a location along the northern property line
of the property.

         16. All rights and liabilities under this Agreement shall extend to and
be binding upon the heirs, personal representatives, successors and assigns of
the parties hereto.

         17. The deed to be delivered to the Optionee shall make reference to
the Restrictive Covenants and Building Restrictions which shall run with the
land and shall be binding upon the Optionee, its heirs, personal
representatives, successors and assigns, which said Restrictive Covenants and
Building Restrictions are set forth on Exhibit "B," which is made part hereof
and incorporated herein.

                                       7

<PAGE>

         18. All notices hereunder must be in writing and shall be deemed
validly given if sent by registered United States Mail addressed to the party to
be notified at the address or addresses set forth below (or to any other address
that a party to be notified may have designated to the sender, by like notice):

TO OPTIONOR:               Westmoreland County Industrial
                           Development Corporation
                           Courthouse Square
                           2 North Main Street
                           Suite 601
                           Greensburg, PA 15601

TO OPTIONEE:               Dick's Clothing & Sporting Goods
                           400 Fairway Drive
                           Coraopolis, PA 15108

                                       8

<PAGE>

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

WITNESS:                             DICK'S CLOTHING & SPORTING GOODS

/s/ Priscilla K. Roney               /s/ Joseph Queri
----------------------------         --------------------------------
                                     Joseph Queri, Vice President - Real Estate

                                     WESTMORELAND COUNTY INDUSTRIAL
                                     DEVELOPMENT CORPORATION

                                     /s/ Richard Vidmer
                                     ----------------------------------
                                     Richard F. Vidmer

                                     /s/ Terry R. Marolt
                                     ----------------------------------
ATTEST:                              Terry R. Marolt, Vice Chairman

/s/ illegible                        /s/ Tom Balya
----------------------------         -----------------------------------
Executive Director                   Tom Balya, Secretary

                                       9
<PAGE>

                                     [MAP]

                                  EXHIBIT "A"

                                PLAN OF PROPERTY
                                ----------------
                                      For
                              WESTMORELAND COUNTY
                          INDUSTRIAL DEVELOPMENT CORP.
                  DATE: OCTOBER 20, 19??      SCALE: 1" = ???'

                                 PREPARED BY
                             NEILAN ENGINEERS, INC.
                             ----------------------
                              11005 PARKER DRIVE
                             NORTH ???????? PA  15642
<PAGE>
                RESTRICTIVE COVENANTS AND BUILDING RESTRICTIONS

                                      FOR

                              1-70 INDUSTRIAL PARK

                      SITUATE IN SOUTH HUNTINGDON TOWNSHIP

                              WESTMORELAND COUNTY

                          COMMONWEALTH OF PENNSYLVANIA

                                  EXHIBIT "B"
<PAGE>
                RESTRICTIVE COVENANTS AND BUILDING RESTRICTIONS
                            FOR I-70 INDUSTRIAL PARK
                          (SOUTH HUNTINGDON TOWNSHIP)
                                  EXHIBIT "B"

         THIS AGREEMENT, made and entered into this 1st day of July, 1996, by
and between WESTMORELAND COUNTY INDUSTRIAL DEVELOPMENT CORPORATION, a non-profit
corporation of the Commonwealth of Pennsylvania. Party y of the First Part
(hereinafter called "WCIDC") and ALL PURCHASERS, THEIR RESPECTIVE HEIRS,
SUCCESSORS AND ASSIGNS, of lots in I-70 Industrial Park situated in the Township
of South Huntingdon, Westmoreland County, Pennsylvania, Parties of the Second
Part;

         WHEREAS, WCIDC is the owner of a plan of lots called "I-70 Industrial
Park," situated partly in the Township of South Huntingdon, Westmoreland
County, Pennsylvania, hereinafter called "I-70 Industrial Park," which plan is
recorded in the Office of the Recorder of Deeds in and for the County of
Westmoreland, Pennsylvania in PBV 90 Pages 2928 to 2931 inclusive; and

         WHEREAS, the party of the first part intends to lease, sell and convey
lost in the said I-70 Industrial Park by deeds referring to the restrictive
covenants herein contained and subjecting the purchaser thereto, to the end
that such covenants will inure to the benefit of each and all of the purchasers
of such lots, their respective heirs, successors and assigns, and will insure
sound industrial development;

         NOW, THEREFOR, WCIDC agrees that all lots in said I-70 Industrial Park
will be leased or sold subject to the restrictive covenants herein contained
and all purchasers of lots in said I-70 Industrial Park for themselves, their
heirs, successors and assigns, by the acquisition of said lots, agree to be
bound by the restrictive covenants herein contained
<PAGE>
by reference in their respective deeds to the Volume and Page in the Recorder's
Office in and for the County of Westmoreland, Pennsylvania, wherein this
Agreement will be recorded.

         IN CONSIDERATION of the foregoing, the procurer of any lot in said
I-70 Industrial Park, intending to bind himself and all persons whom title to
said lot may hereafter vest, agrees to the following restrictive covenants:

         1.    The covenants herein contained shall run with the land and shall
               bind all parties and persons claiming under them until DECEMBER
               31, 2021, at which time said covenants shall be automatically
               extended for successive period of ten (10) years, unless by a
               vote of the majority of the ten owners of said lots it is agreed
               to change said covenants in whole or in part.

         2.    In order to make possible adjustments and variances which in the
               sole opinion of WCIDC are necessary or desirable, enforcement
               rights will be held only by WCIDC, its successors or assigns. If
               the parties hereto, or any of them or their heirs, successors or
               assigns, shall violate or attempt to violate, any; of the
               covenants herein, it shall be lawful for WCIDC, its successor or
               assigns, to prosecute any proceedings at law or in equity
               against the person or persons violating or attempting to violate
               any such covenants and either to prevent him or them from doing,
               or to recover damages or other dues for such violation. In the
               event neither WCIDC nor its successors and assigns is in
               existence, or in the event WCIDC executes and records an
               Agreement relinquishing its sole right of enforcement

                                       2
<PAGE>
         hereunder, such proceedings may be brought by a majority of the owners
         of real property in said 1-70 industrial Park.

3.       Invalidation of any one of the covenants by a judgment or court order
         shall not affect any of the other covenants which shall remain in full
         force and effect.

4.       The following restrictive covenants shall be applicable to the land in
         I-70 Industrial Park.

         (a)      LAND-TO-BUILDING RATIO - Provision will be made for limiting
                  the area which may be covered by buildings, to assure adequate
                  space for parking, loading, future expansion, and an
                  attractive park-like setting. The minimum land-to-building
                  ratio will be 2 to 1 in the initial development and on full
                  development, after expansion a maximum building coverage not
                  to exceed 50% of the lot size.

         (b)      PERMITTED USES - The property is to be utilized for office,
                  laboratories, manufacturing, processing, servicing, testing,
                  repair, research and development, and distribution activities.
                  All buildings and land use shall be for service and industrial
                  purposes as opposed to any commercial/retail uses. No products
                  will be sold from the premises as a retail trade unless such
                  retail sales are incidental in nature to the function of the
                  facility. Use which create objectionable noise, odor,
                  vibration, fumes, glare, heat, hazard radiation or waste
                  problems are prohibited. Trailer courts, coal and natural gas
                  extraction, sanitary

                                       3
<PAGE>
         land fills, junk and salvage yards are expressly prohibited. In regards
         to emissions, there shall be no emission of fly ash, dust, dirt, fumes,
         vapors or gases in the atmosphere from any operation that would cause
         any damage to the public health or other forms of property or which can
         cause excessive soiling of any point beyond the lot line. Operations
         and uses which are neither specifically prohibited nor specifically
         authorized by these restrictions may be permitted in a specific case if
         operational plans and specifications are submitted and approved in
         writing by the WCIDC. Approval or disapproval of such operational pans
         and specifications shall be based upon the effect of operations or uses
         on other property subject to these restrictions. Neither the WCIDC, nor
         its successors or assigns, shall be liable in damages to anyone
         submitting operational plans to them for approval by reason of mistake
         in judgment, negligence or nonfeasance arising out of, or in connection
         wit the approval or disapproval of any such operational plans. Every
         person who submits operational plans to the WCIDC for approval agrees,
         by submission of such plans that he will not bring any action or suit
         against WCIDC to recover any such damages.

(c)      LANDSCAPING - The total ground area of the site not covered by
         buildings, paved parking, interior roadways and service areas is to be
         landscaped. A minimum of 50% of the front yard area is to be

                                       4
<PAGE>

         landscaped with lawn or other appropriate planting materials such as
         trees and shrubs. A minimum of one tree for every 40' of front footage
         is required set back 20' from right-of-way. Side and rear yards are to
         be landscaped with lawn or other appropriate planting or materials
         except paved areas for loading, unloading, driveway and parking. For
         each lineal foot of side lot line between the front property line and
         the rear line of the building, at least three (3) square feet of
         landscaping is to be provided on that side yard, no matter how much
         area is to be paved. All slopes are to be entirely covered by grass or
         ground cover.

         A minimum of one (1) 2" caliper shade tree for every 40' of front
         footage is required; set back 20' from right-of-way. (This species of
         tree will be specified by the WCIDC).

         The total front yard area not covered by paved parking and drives,
         sidewalks and other service areas shall be landscaped with lawn, or
         other appropriate planting materials, as defined in Landscape Treatment
         below.

         Landscape Treatment for all areas of the site may include the use of
         ground covers, ornamental grasses, flower beds, deciduous and evergreen
         shrubs, shade and ornamental trees, coniferous trees, fountains, pools
         and sculptured materials. All planting material shall be hardly to this
         geographical planting zone.

                                       5
<PAGE>

(d)      ___________ - the Building front yard setback line will be established
         not less than fifty (50) feet back from the street rights-of-way. Only
         walks, driveways, visitor and executive parking, and landscaping will
         be permitted in the setback area.

(e)      OTHER SETBACKS - To provide sufficient light and air for all buildings,
         and to assure an attractive setting, building setback lines will be
         established at not less than twenty-five (25) feet from side property
         lines. The building setback line will be not less than twenty-five (25)
         feet from rear property lines. Where improved residential properties
         existed on the date of this Agreement, the building setback from the
         abutting property line or street right-of-way, will be not less than
         fifty (50) feet. Setbacks will be measured from the wall of the
         building or the end of the loading dock, whichever is closer to the
         property line.

(f)      BUILDING HEIGHT LIMITATIONS - Buildings will normally be limited to two
         (2) stories, except that in cases of buildings with special
         requirements, additional height may be permitted by WCIDC, provided the
         setbacks are also increased as required herein. Generally, any building
         over thirty-five (35) feet in height will require a setback from the
         nearest property line at least 25% greater in lineal footage than the
         height of the building, however, no building or structure including
         office buildings, shall exceed three stories or forty-

                                       6
<PAGE>
               five (45) feet in height.

         (g)   CONSTRUCTION MATERIAL - All exterior walls of building are to be
               finished in materials of pleasing and harmonious appearance;
               unsightly or low-grate exteriors will not be permitted. This
               will require the use of face brick, its equivalent, or better on
               the facing for office space. If office space is going to be
               included on the internal portions of the building, and thus,
               will not be accented, the WCIDC may consider the use of an all
               metal building with a requirement of higher landscape treatment.
               Non-masonry materials may be permitted by WCIDC if compatible
               with the basic objective of achieving high-grade and harmonious
               development. WCIDC expressly reserves the right to PROHIBIT
               certain colors and exterior materials such as concrete block,
               split face block, fluted block, pre-engineered metal siding,
               etc. Any buildings where split face block may be permitted, the
               WCIDC will require the use of accent courses and/or other trim
               applications as deemed appropriate by the WCIDC. All exterior
               metal walls shall be prefabricated panels and pre-finished with
               a standard manufacturer's color.

         (h)   OFF-STREET PARKING AND LOADING - No parking on streets is
               permitted. All parking is to be located to the side or the rear
               of the building except for limited visitor and executive parking
               which may occur in the area fronting upon the street. Front area
               parking may be permitted

                                      7
<PAGE>
               based on the peculiar topography features and meeting an
               additional requirement of higher landscape treatment. Shipping
               may be permitted from the front of the building, however, the
               WCIDC will require additional landscape treatment and possible
               screening. All areas used for driveway, loading, service, parking
               or vehicular storage shall be surfaced with a pavement approved
               by the WCIDC. All paved areas shall be appropriately drained so
               that storm water will not create erosion and/or storm water
               problems on the property or on adjacent properties. No surface
               storm runoff may be drained on to public streets unless approved
               by WCIDC. Adequate shipping facilities are to be located on those
               sides of buildings which do not front on streets except to
               conditions previously mentioned. Truck and trailer maneuvering
               are to be confined to the property of the user.

         (i)   STORM WATER DETENTION - Peak storm runoff from the developed
               site, if not conducted to the public storm system, will be
               limited to an amount or quantity that is no greater than the
               existing peak storm water discharge before proposed development.
               A review of the amount of storm water shall be performed by the
               WCIDC engineer to insure that the storm water system can handle
               the level of runoff. Extremely large development may require
               additional on-site retention. The peek storm runoff will be
               computed, using the "rational method," on the basis of an
               average rainfall intensity of 5.16 inches per hour.

                                      8
<PAGE>

         Storm run-off from the developed site shall be channeled and collected
         within the site and shall not flow on or affect adjacent lots.

(j)      STORAGE AREAS - Outdoor storage materials, supplies, products, and
         equipment will be permitted only in areas which do not front on
         streets, and only if enclosed or screened by an approved wall,
         planting, earthen mound or other suitable barriers, providing
         year-round visual screening from adjacent properties.

(k)      WASTE DISPOSAL AND STORAGE - Refuse, trash and waste, if stored outside
         of the building, is to be kept in closed, fire resistant sanitary
         containers, especially manufactured for waste storage. Hazardous waste
         must be stored in approved buildings.

         The size and number of containers is to be such that refuse will not
         overflow the container between pickups. Refuse containers shall be so
         located and screened so as not to be visible from any street or
         adjoining property. No burial of waste materials is permitted on the
         premises. No lagoons or open vessels for sludge or spent chemical
         storage will be permitted. Radioactive waste storage outside of a
         building is not permitted. Open burning of rubbish and trash is
         prohibited.

(l)      TRANSMITTING RECEIVING TOWERS, DISHES OR ANTENNAS - No tower, dish or
         antenna for the transmission or reception of electromagnetic or laser
         radiation shall be erected, used or maintained on the property

                                       9

<PAGE>

         if visible outside of any building whether attached to an improvement
         or self-standing without prior written approval of WCIDC.

(m)      SIGN STANDARDS - No flashing, animated or glaring signs will be
         permitted. Signs will be placed on the face of the building, except for
         entrance and directional signs or a ground mounted identification sign
         as an alternate to an identification sign on the building. No building
         mounted sign shall project above the roof line of the building. Sign
         copy shall be restricted to the company name, logo and principal
         product. Directional signs located on owner's or leasee's property will
         be of a uniform type and permanent quality and will not exceed four (4)
         square feet in area; ground mounted identification and entrance sign
         will not exceed thirty-five (35) square feet in area. The WCIDC may
         permit larger signs when considering such aspects as building size and
         setbacks from the right-of-way. No billboards or similar advertising
         signs will be permitted except a sign advertising a property for sale
         or lease.

(n)      EXTERIOR LIGHTING - In order to minimize the trespass of light onto
         adjacent streets and properties only lighting fixtures utilizing
         shielded or screened lamps, and designed to control glare by having a
         light cutoff feature shall be used for exterior lighting. Wiring for
         exterior lighting fixtures shall be installed underground. Lighting
         shall be compatible and harmonious throughout and shall be in keeping
         with

                                       10

<PAGE>
         the design and function of the building. Flood lighting is not
         permitted as a source of general area illumination.

(o)      MECHANICAL EQUIPMENT - All mechanical equipment including air handling
         units, condensers, compressors, ventilators, chimneys, stacks,
         ductwork, vents and conductors erected, used and installed on the
         property if visible outside of any building, must be screened from view
         in a manner approved by WCIDC.

(p)      FENCES AND WALLS - Erection of fences and walls will be subject to
         prior written approval of WCIDC to assure that they will harmonize with
         the surroundings. No fencing is permitted within the setback areas.

(q)      MINERAL RESERVATIONS - Mineral, oil and gas rights will be restricted
         to avoid the possibility of undermining structures of unsightly
         exploitation of underground resources.

(r)      MAINTENANCE OF BUILDINGS AND GROUNDS - Buildings, grounds, pavements,
         improvements and appurtenances shall be kept in a safe, clean, neat
         wholesome and well repaired condition and owner or lessee shall comply
         in all respects with governmental statutes, ordinances, regulations,
         health, police and fire requirements. Trash, debris or used materials
         are not permitted to accumulate on the property. Lawn and landscape
         materials are to be kept trim and free of obnoxious weeds and
         deleterious growth.

                                       11
<PAGE>

(s)      FUTURE ADJUSTMENTS - In order to make possible adjustments which are
         desirable and do not detract from the industrial park's overall
         development, and to allow future changes needed to protect or enhance
         the value of the total industrial park development, enforcement rights
         will be held only by the WCIDC, it successors and assigns. This will
         permit the flexibility and adaptability vital to the industrial park.
         Requests for variances or adjustments will be considered by WCIDC on a
         case-by-case basis and in it sole discretion, and approval of any
         variance or adjustment shall not be deemed to change or generally waive
         the covenants and restrictions herein contained or to serve as
         precedent for any proposed future variances or adjustments which maybe
         be requested.

(t)      PLAN APPROVAL - To assure architectural and landscaping integrity,
         prior approval by WCIDC will be required of a user's site plan and
         construction plans, including landscaping, sign design (including
         supporting structures), and contemplated alterations. Any future
         additions or alterations to the building are subject to this same plan
         approval process. Plans are to be submitted to WCIDC prior to making
         application for a building permit. Review of plans by the WCIDC shall
         be provided within thirty (30) days. Plans should show among other
         things, the location of main and accessory structures o the site and in
         relation to one another, the exterior building materials,

                                     12
<PAGE>
         colors and textures to be used in construction; storm drainage systems;
         the height and bulk of structures; roads and parking areas; the
         provision of other open space on the site; the landscaping, paving,
         fences and walls on the site; and the display of signs.

(u)      PROPERTY DEVELOPMENT - Upon closing of the sale each purchaser shall
         close within one (1) year of such date, actual construction to be
         started of an industrial building. Said construction shall be completed
         within two (2) years of the start of construction. If the provisions of
         this paragraph are not strictly complied with, title to the subject
         property shall revert to the WCIDC and the consideration, less the
         option fee, shall be returned without interest.

(v)      SUBSEQUENT TRANSFER - Upon closing of the sale and after transfer of
         deed from WCIDC to a purchaser such lot shall not be further sold or
         leased without the express written consent of the WDIDC, which consent
         shall not be withheld unreasonably so long as the prospect occupant,
         owner or tenant's use of the property is permitted within the limits
         set forth in paragraph 4(b). No lot shall be further subdivided without
         the expressed written consent of the WCIDC, which consent shall not be
         withheld unreasonably so long as the proposed subdivision meet the
         requirements of paragraph 4(a) Land-to-Building Ratio and the intended
         use of the proposed subdivision is within the scope of Permitted Uses
         as set forth in paragraph 4(b).

                                       13

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