Document:

<PAGE>   1

                                                                   Exhibit 10.17

                            First Amendment to Lease

        The First Amendment to Lease entered into by and between Miramar
FlexSpace, Ltd., a Florida Limited Partnership ("Miramar" or Landlord") and
Invivo Corporation, a Delaware Corporation d/b/a Lumidor Safety Products
("Invivo" or "Tenant") this 12th day of June, 2000.

                                   WITNESSETH

        Whereas, on or about April 15, 1992 Miramar Interchange Associates, as
landlord, and SafetyTek Corporation, as tenant, entered into a written lease for
the premises identified as 11221 Interchange Circle South, Miramar, Florida
consisting of approximately 8,820 square feet ("Original Lease"); and

        Whereas, Miramar FlexSpace, Ltd., is the successor in interest to
Miramar Interchange Associates; and

        Whereas, Invivo Corporation is the successor in interest by merger to
SafetyTek Corporation; and

        Whereas, on or about June 10, 1999, Miramar and Invivo entered into a
Lease Extension Agreement extending the Lease Term of the Original Lease for the
premises known as 11221 Interchange Circle South ("Original Space"), until
August 31, 2000; and

        Whereas, Invivo wishes to lease additional space from Miramar and to
otherwise amend certain provisions of the Original Lease as extended; and

        Whereas, the parties wish to set out their agreement in writing;

        NOW THEREFORE in consideration of the mutual covenants and conditions
set out herein and other good and valuable consideration the receipt of which is
hereby acknowledged, Miramar and Invivo for themselves, their successors and
assigns, do covenant and agree as follows:

        1.      The above recitations including that of consideration are true
                and correct.

        2.      Commencing May 1, 2000, in addition to the leasing of the
                premises known as 11221 Interchange Circle South, Invivo hereby
                agrees to lease from Miramar the contiguous space known as 11251
                Interchange Circle South, Miramar, Florida 11251 Interchange
                Circle shall hereinafter be referred to as the Additional Space
                (the "Additional Space").

        3.      For purposes of this Amendment, the Original Space together with
                the Additional Space shall be referred to as the "New Premises".
                A sketch of the New Premises is attached as Exhibit "A".
                Commencing May 1, 2000, reference to premises in the Original
                Lease shall be deemed to be the New Premises. The Original Lease
                and this First Amendment to Lease shall collectively be referred
                to as the "Lease".

        4.      The lease term for the New Premises shall begin on May 1, 2000
                and shall expire September 30, 2005.

        5.      Base rent for the New Premises shall be as follows:

<TABLE>
<CAPTION>
                             Total Annual           Monthly
Period                        Base Rent             Base Rent
<S>                        <C>                    <C>
5/1/00 - 9/30/00 - the same monthly payment required to be paid in the Original Lease for the Original Space
10/1/00-9/30/01            $   117,234.00         $    9,769.60
10/1/01-9/30/02            $   121,923.36         $   10,160.28
10/1/02-9/30/03            $   126,800.30         $   10,566.70
10/1/03-9/30/04            $   131,872.32         $   10,989.36
</TABLE>

<PAGE>   2

<TABLE>
<S>                        <C>                    <C>
10/1/04-9/30/05            $   137,147.22         $   11,428.94
</TABLE>

                Base rent as referenced above does not include any applicable
                taxes. Tenant shall also pay the same time and place as the base
                rent, such Florida state sales tax and such other applicable
                taxes or other income taxes or taxes of similar nature due on
                rentals, either city, state county and federal as may be in
                effect from time to time.

        6.      In order to give Landlord a lien of equal priority with
                Landlord's lien for rent, any and all sums of money or charges
                required to be paid by Tenant under this Lease, whether or not
                the same be so designated, shall be considered additional rent.
                If such amounts or charges are not paid at the time provided in
                the Lease, they shall nevertheless, if not paid when due, be
                collectible as Additional Rent with the next installment of rent
                thereafter falling due hereunder, but nothing herein contained
                shall be deemed to suspend or delay the payment of any amount of
                money or charges as the same becomes due and payable hereunder,
                or limit any other remedy of Landlord.

        7.      No additional security deposit is required for the Additional
                Space. Landlord acknowledges a present security deposit of
                $8,600.00.

        8.      Tenant's proportionate share for the New Premises under the
                Lease shall be 14.33% (.1433).

        9.      At all times during the term of this Lease, Tenant shall be
                responsible for its share of water and trash collection which
                presently is $155.00 per month.

        10.     Tenant acknowledges that it is responsible for and shall pay as
                additional rent its proportionate share of any increase above
                the base year costs for real estate taxes assessed on the
                property of which the New Premises is a part.

        11.     Tenant is responsible for and shall pay as Additional Rent its
                proportionate share of any increase above the base year costs
                for all insurance coverages carried by Landlord relating to the
                property and common elements of which Tenant has use of, access
                to or is a part.

        12.     For each appropriate billing period, Landlord shall provide
                Tenant with a statement setting out the computation and charges
                for Tenant's proportionate share of real estate taxes and
                insurance. Payment shall be due within 15 days of receipt and
                shall be deemed additional rent.

        13.     The base year for all purposes shall be 1992.

        14.     The business usage of the New Premises shall be the
                manufacturing and shipping of safety products, office and
                warehouse.

        15.     Notwithstanding any language in the Original Lease, including
                paragraph 9 thereof, to the contrary, Tenant at all times shall
                maintain insurance against public liability, including that from
                personal injury or property damage in or about the premises
                resulting front the occupation, use or operation of the
                premises, insuring both Landlord, Landlord's managing agent and
                Tenant and naming the Landlord and Landlord's management agent
                as an additional insured therein, in amount not less than
                $1,000,000.00 per occurrence.

        16.     Rules and Regulations. Tenant agrees to comply with all rules
                and regulations Landlord may adopt from time to time for
                operation of the Park, and protection and welfare of Park, its
                tenants, visitors and occupants. The present rules and
                regulations, which Tenant hereby agrees to comply with, entitled
                "Rules and Regulations" are attached hereto as Exhibit "B".
                Landlord may amend the rules from time to time and any future
                rules and regulations shall become a part of this Lease, and
                Tenant hereby agrees to comply with the same upon delivery of a
                copy thereof to Tenant, providing the same do not materially
                deprive Tenant of its rights established under this Lease.
                Landlord shall not be liable to Tenant for violation of the
                rules and regulations by other tenant(s).

        17.     Tenant Improvements. Landlord shall perform the Tenant
                improvements as set out in Exhibit "C" attached hereto. All
                Tenant improvements contemplated herein shall be in accordance
                with Landlord's building standard improvements and all
                construction material shall be standard building grades as is
                ordinary and customary for Landlord at the project. Any
                construction or materials which Tenant wishes to improve or
                change from building standard or building grades shall only be
                made after written agreement and approval with pre-agreed
                arrangement

<PAGE>   3

                for payment of any additional costs or expenses as a result
                thereof. Certain of the Tenant improvements are being performed
                on the Original Source currently occupied by Tenant. Tenant
                agrees to reasonably cooperate with Landlord and allow Landlord
                to perform the agreed improvements necessary at the Original
                Space. Such cooperation shall include the ability of Landlord to
                perform these improvements during normal working hours. Landlord
                shall cooperate with Tenant to minimize interruption of Tenant's
                business operations during the performance of the Tenant
                improvements contemplated herein. Excluding solely those
                improvements set out in Exhibit "C" attached hereto; Tenant
                accepts the premises in "as is" conditions.

        18.     Tenant specifically acknowledges that improvements to the
                Original Space set out in the Original Lease have been
                performed. Those improvements do not apply to this Amendment and
                do not apply to the Additional Space; the only improvements
                contemplated herein being those set out in Exhibit "C".

        19.     It is specifically understood that Tenant shall pay the Rent for
                11221 Interchange Circle South as set out in the lease Extension
                Agreement through April 30, 2000. Thereafter, this Amendment
                shall apply and the Lease Extension Agreement shall be
                superceded and of no effect.

        20.     The Tenant is hereby granted one option to renew the Lease for
                the New Premises for and additional five- (5) year period on the
                following terms and conditions:

                a.      Any right to renew is conditioned upon Tenant not being
                        in default under any term of the Lease at the time of
                        election to exercise the option, at the election of
                        Landlord, at the time the extended period is to begin.

                b.      If Tenant shall elect to exercise any option, it shall
                        do so by giving Landlord written notice at least one
                        hundred eighty (180) days prior to the expiration of the
                        primary term of the Lease. Failure to provide proper
                        notice within the time required shall terminate the
                        pending or remaining option rights of the Tenant.

                c.      The option to renew can only be exercised as to the
                        entire New Premises.

                d.      The base year for the renewal period shall remain 1992.

                e.      For each consecutive 12 months of the renewal period,
                        the Base Rent shall increase four (4%) percent over the
                        Base Rent of the prior 12 month period.

                f.      Any option to renew relating to or concerning the
                        Original Space, Additional Space or New Premises, if
                        any, is no longer in effect and is superceded by the
                        terms of the renewal option set out in this paragraph
                        20.

21.     Any option to renew relating to or concerning the Original Space,
        Additional Space or New Premises, if any is no longer in effect and is
        superceded by the terms of the renewal option set out in this paragraph
        20.

22.     Each of the parties represents and warrants that it has dealt with no
        broker or brokers in connection with the execution of this Lease, except
        Adler Management services and of the parties agrees to indemnify the
        other against, and hold it harmless from, all liabilities arising from
        any claim for brokerage commissions or finder's fee resulting from the
        indemnitor's acts (including, without limitation, the cost of counsel
        fees in connection therewith) except for the persons or entities set
        forth above.

23.     The Property is part of the Flexspace Network (the "Network"). The
        Landlord, through the Network, from time to time, may, but is not
        required to provide access to services, benefits and/or accommodations
        to Tenants within the Network. Tenant understands and agrees that
        Landlord is under no legal obligation to maintain, continue or make
        available the Network or any part thereof and the network and/or use
        thereof is not a condition of or consideration for Tenant entering into
        this Lease. Further, Landlord makes no warranties or representations
        whatsoever as to any services or products obtained through the Network
        and Tenant agrees and acknowledges that any claim, complaint or remedy
        shall be against the ultimate provider of the services or products and
        not against the Landlord.

24.     In the event of a conflict between the terms of this Amendment and the
        Original Lease or lease extension agreement, the terms of this Amendment
        shall govern. The last sentence of paragraph 4 of the Original lease
        shall not apply to the transaction set out I this First Amendment.
        Otherwise the terms of the original Lease shall remain in full force and
        effects.

Signed and sealed on the date first above written.

Witnesses:                                  Landlord:
<PAGE>   4

                                            Miramar FlexSpace, Ltd. A Florida
                                            limited partnership
                                            By:  Miramar FlexSpace, LLC, it's
                                                 general partner
                                            By:  AP-Adler SPV, Ltd., its
                                                 managing member
                                            By:  AP-Adler GP LLC, its general
                                                 partner
                                            By:  AP Adler Investment Fund, its
                                                 managing member
                                            By:  Adler Newco-GP, Inc., its
                                                 managing general partner

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

-----------------------                     ----------------------------------
                                            Bret Harris, Authorized Signatory

                                                              Tenant:

                                            Invivo Corporation, A Delaware
                                            Corporation
                                            d/b/a/ Lumidor Safety Products
-----------------------

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

                                            By:
                                            ------------------------------------
                                            James B. Hawkins, President

This Document Prepared By:

Steven R. Brownstein, Esq.
Levey & Associates
1320 S. Dixie Highway - #1275
Coral Gables, FL  33146<PAGE>   1

                                                                   Exhibit 10.18

                               SINGLE TENANT LEASE

1.      Basic Provision ("Basic Provisions")

        1.1     Parties: This Lease ("Lease"), dated for reference purposes only
                June 7, 1999, is made by and between Capellino/Galleano
                ("Lessor") and Sierra Precision, Inc. ("Lessee"),(collectively
                the "Parties," or individually a "Party").

        1.2     Premises: That certain real property, including all improvement
                therein or to be provided by Lessor under the terms this Lease,
                and commonly known as Lot #2 - Southside of Arrow Route between
                White Oak and Oakwood, Rancho Cucamonga, located in the County
                of San Bernardino, State of California, and generally described
                as (describe briefly the nature of the property and, if
                applicable, the "Project", if the property is located within a
                Project) an approximate 35,140 square foot single story concrete
                tilt-up building on an approximate 79,500 square foot parcel of
                land. Part of a 50 acre master planned business park known as
                Arrow Park.("Premises). (See also Paragraph 2)

        1.3     Term: Ten (10) years and -0- months ("Original Term") commencing
                see paragraph #50 ("Commencement Date") and ending see paragraph
                #50 ("Expiration Date"). See also paragraph 3)

        1.4     Base Rent: $18,010.00 per month ("Base Rent"), payable on the
                first (1st) day of each month commencing the second (2nd) month
                of the lease term (See also Paragraph 4) if this box is checked,
                there are provisions in this Lease for the Base Rent to be
                adjusted. See Paragraph #51

        1.5     Base Rent Paid Upon Execution: 18,010.00 as Base Rent for the
                period first (1st) month of lease term.

        1.6     Security Deposit: $22,315.00 ("Security Deposit). (See also
                Paragraph 5)

        1.7     Agreed Use: Office manufacturing and distribution of instrument
                gages and all related legal uses. (See also Paragraph 6)

        1.8     Insuring Party. Lessor is the "Insuring Party" unless otherwise
                stated herein. (see also Paragraph 8)

        1.9     Real Estate Brokers: (See also Paragraph 15)

        1.10    Cushman & Wakefield of CA., Inc. represents both Lessor and
                Lessee ("Dual Agency").

                (b) Payment to Brokers: Upon execution and delivery of this
                Lease by both Parties, Lessor shall pay to the Broker the fee
                agreed to in their separate written agreement (or if there is no
                such agreement, the sum of ---% of the total Base Rent for the
                brokerage services rendered by said Broker).

        1.11    Addenda and Exhibits. Attached hereto is an Addendum or Addenda
                consisting of Paragraphs 49 through 55 and Exhibits A and B, all
                of which constitute a part of this Lease.

3.      Premises.

        2.1     Letting. Lessor hereby leases to Lessee, and Lessee hereby
                leases from Lessor, the Premises, for the term, at the rental,
                and upon all of the terms, covenants and conditions set forth in
                this Lease. Unless otherwise provided herein, any statement of
                size set forth in this Lease, or that may have been used in
                calculating rental, is an approximation which the Parties agree
                is reasonable and the rental based thereon is not subject to
                revision whether or not the actual size is more or less

        2.2     CONDITION. Lessor shall deliver the Premises to Lessee broom
                clean and free of debris on the Commencement Date or the Early
                Possession Date, whichever first occurs ("Start Date"), and , so
                long and the required service contracts described in Paragraph
                7.1(b) below are obtained by Lessee within thirty (30) days
                following the Start Date, warrants the to be constructed
                electrical, plumbing, fire sprinkler, lighting, heating,
                ventilating and air conditioning systems ("HVAC"), loading
                doors, if any, and all other such elements in the Premises will
                be in good operating condition on said date and that the
                structural elements of the rood, bearing walls and foundation of
                any buildings on the Premises (the "Building") shall be free of
                material defects. If a non-compliance with said warranty exists
                as of the Start Date, Lessor shall, as Lessor's sole obligation
                with respect to such matter, except as otherwise provided in
                this Lease, promptly after receipt of written notice from Lessee
                setting forth with specificity the nature and extent of such
                non-compliance with said warranty exists as of the Start Date,
                Lessor shall as Lessor's sole obligation with respect to such
                matter, except as otherwise provided in this Lease, promptly
                after receipt of written notice from Lessee setting forth with
                specificity the nature and extent of such non-compliance,
                rectify same at Lessor's expense. If, after the Start Date,
                Lessee does not give Lessor written notice of any non-compliance
                with this warranty within: (I) one year as to the surface of the
                roof and the structural portions of the roof, foundation and
                bearing walls, (ii) one year as to the HVAC systems, (iii)
                thirty (30) days as to the remaining systems and other elements
                of the building, correction of such non-compliance shall be the
                obligation of Lessee at Lessee's sole cost and expense.

        2.3     COMPLIANCE. Lessor warranty that the improvements on the
                Premises comply with all applicable laws, covenants or
                restrictions of record, building codes, regulations and
                ordinances ("APPLICABLE REQUIREMENTS") in effect on the

<PAGE>   2

                Start Date. Said warranty does not apply to the Lessee. NOTE:
                Lessee is responsible for determining whether or not the zoning
                is appropriate for Lessee's intended use, and acknowledges that
                past uses of the Premises may no longer be allowed. If the
                Premises do not comply with said warranty, Lessor shall, except
                as otherwise provided promptly after receipt of written notice
                from Lessee setting forth with specificity the nature and extent
                of such non-compliance, rectify the same at Lessor's expense. If
                Lessee does not give Lessor written notice of a non-compliance
                with this warranty within six (6) months following the Start
                Date, correction of that non-compliance shall be the obligation
                of Lessee at Lessee's sole cost and expense. If the Applicable
                Requirements are hereafter changed (as opposed to being in
                existence at the Start Date, which is addressed in Paragraph
                6.2(e) below) so as to require during the term of this Lease the
                construction of an addition to or an alteration of the Building,
                the remediation of any hazardous Substance, or the reinforcement
                or other physical modification of the Building ("CAPITAL
                EXPENDITURE"), Lessor and Lessee shall allocate the cost of such
                work as follows

                (a) Subject to paragraph 2.39c) below, if such Capital
                Expenditures are required as a result of the specific and unique
                use of the Premises by Lessee as compared with uses by tenants
                in general, Lessee shall be fully responsible for the cost
                thereof, provided, however that if such Capital Expenditure is
                required during the last two (2) years of this Lease and the
                cost thereof exceeds six (6) months' Base Rent, Lessee may
                instead terminate this Lease unless Lessor notifies Lessee, in
                writing, within ten (10) days after receipt of Lessee's
                termination notice that Lessor has elected to pay the difference
                between the actual cost thereof and the amount equal to six (6)
                months' Base Rent. If Lessee elects termination, Lessee shall
                immediately cease the use of the Premises which requires such
                Capital Expenditure and deliver to lessor written notice
                specifying a termination date at least ninety (90) days
                thereafter. Such termination date shall, however, in no event be
                earlier than the last day the Lessee could legally utilize the
                Premises without commencing such Capital Expenditure.

                (b) If such Capital Expenditure is not the result of the
                specific and unique use of the Premises by Lessee (such as,
                governmentally mandated seismic modifications), then lessor and
                Lessee shall allocate the obligation to pay for such costs
                pursuant to the provisions of Paragraph 7.1(c); provided,
                however, that if such Capital Expenditure is required during the
                last two years of this Lease or if Lessor reasonably determines
                that it is not economically feasible to pay its share thereof,
                Lessor shall have the option to terminate this Lease upon ninety
                (90) days prior written notice to Lessee unless Lessee notifies
                Lessor, in writing within ten (10) days after receipt of
                Lessor's termination notice that Lessee may advance such funds
                and deduct same, with Interest, from Rent until Lessor's share
                of such costs have been fully paid. If Lessee is unable to
                finance Lessor's share, or if the balance of the Rent due and
                payable for the remainder of this Lease is not sufficient to
                fully reimburse Lessee on an offset basis, Lessee shall have the
                right to terminate this Lease upon thirty (30) days written
                notice to Lessor.

                (c) Notwithstanding the above, the provisions concerning Capital
                Expenditures are intended to apply only to non-voluntary,
                unexpected, and new Applicable Requirements. If the Capital
                Expenditures are instead triggered by Lessee as a result of an
                actual or proposed change in use, change in intensity of use, or
                modification to the Premises then, and in that event, Lessee
                shall be fully responsible for the cost thereof, and Lessee
                shall not have any right to terminate this Lease.

        2.4     Acknowledgements. In addition, Lessor acknowledges that" (a)
                Broker has made no representations, promises or warranties
                concerning Lessee's ability to honor the Lease or suitability to
                occupy the Premises, and (b) it is Lessor's sole responsibility
                to investigate the financial capability and/or suitability of
                all proposed tenants.

        2.5     Lessee as Prior Owner/Occupant. The warranties made by Lessor in
                paragraph 2 shall be of no force or effect if immediately prior
                to the Start Date Lessee was the owner or occupant of the
                Premises. In such event, Lessee shall be responsible for any
                necessary corrective work.

3.      Term.

        3.1     Term. The Commencement Date, Expiration Date and Original Term
                of this Lease are as specified in Paragraph 1.3.

        3.2     Early Possession. If Lessee totally or partially occupies the
                Premises prior to the Commencement Date, the obligation to pay
                Base Rent shall be abated for the period of such early
                possession. All terms of this Lease (including but not limited
                to the obligations to pay Real Property Taxes and insurance
                premiums and to maintain the Premises) shall, however, be in
                effect during such period. Any such early possession shall not
                affect the Expiration Date.

        3.3     Delay in possession. See Paragraph 54 in Addendum

        3.4     Lessee Compliance. Lessor shall not be required to tender
                possession of the Premises to Lessee until Lessee complies with
                its obligation to provide evidence of insurance (Paragraph 8.5).
                Pending delivery of such evidence, Lessee shall be required to
                perform all of its obligations under this Lease from and after
                the Start Date, including the payment of Rent, notwithstanding
                Lessor's election to withhold possession pending receipt of such
                evidence of insurance. Further, if Lessee is required to perform
                any other conditions prior to or

<PAGE>   3

                concurrent with the Start Date, the Start Date shall occur but
                Lessor may elect to withhold possession until such conditions
                are satisfied.

4.      Rent

        4.1     Rent Defined. All monetary obligations of Lessee to Lessor under
                the terms of this Lease (except for the Security Deposit) are
                deemed to be rent (`Rent").

        4.2     Payment. Lessee shall cause payment of Rent to be received by
                Lessor in lawful money of the United States, without offset or
                deduction (except as specifically permitted in this Lease), on
                or before the day on which it is due. Rent for any period during
                the term hereof which if for less than one (1) full calendar
                month shall be prorated based upon the actual number of days of
                said month. Payment of Rent shall be made to Lessor at its
                address stated herein or to such other persons or place as
                Lessor may from time to time designate in writing. Acceptance of
                a payment which is less than the amount then due shall not be a
                waiver of Lessor's right to the balance of such Rent, regardless
                of Lessor's endorsement of any check so stating.

5.      Security Deposit. Lessee shall deposit with Lessor upon execution hereof
        the Security Deposit as security for Lessee's faithful performance of
        its obligations under this Lease. If lessee fails to pay Rent, or
        otherwise Defaults under this Lease, Lessor may use, apply or retain all
        or any portion of said Security Deposit for the payment of any amount
        due Lessor or to reimburse or compensate Lessor for any liability,
        expense, loss or damage which Lessor may suffer or incur by reason
        thereof. If Lessor uses or applies all or any portion of said Security
        Deposit, Lessee shall within ten (10) days after written request
        therefore deposit monies with Lessor sufficient to restore said Security
        Deposit to the full amount required by this Lease. If the Base Rent
        increases during the term of this Lease, Lessee shall, upon written
        request from Lessor, deposit additional moneys with Lessor so that the
        total amount of the Security Deposit shall at all times bear the same
        proportion to the increased Based Rent as the initial Security Deposit
        bore to the initial Base Rent. Should the Agreed Use be amended to
        accommodate a material change in the business of Lessee or to
        accommodate a sublessee or assignee, Lessor shall have the right to
        increase the Security Deposit to the extent necessary, in Lessor's
        reasonable judgment, to account for any increased wear and tear that the
        Premises may suffer as a result thereof. If a change in control of
        Lessee occurs during this Lease and following such change the financial
        condition of Lessee is, in Lessor's reasonable judgment, significantly
        reduced, Lessee shall deposit such additional monies with Lessor as
        shall be sufficient to cause the Security Deposit to be as commercially
        reasonable level based on said change in financial condition. Lessor
        shall not be required to keep the Security Deposit separate from it
        general accounts. Within fourteen (14) days after the expiration or
        termination of this Lease, if Lessor elects to apply the Security
        Deposit only to unpaid Rent, and otherwise within thirty (30) days after
        the Premises have been vacated pursuant to Paragraph 7.4(C) below,
        Lessor shall return that portion of the Security Deposit not used or
        applied by Lessor. No part of the Security Deposit shall be considered
        to be held in trust, to bear interest or to be prepayment for any monies
        to be paid by Lessee under this Lease.

6.      Use.

        6.1     Use. Lessee shall use and occupy the Premises only for the
                Agreed Use, or any other legal use which is reasonably
                comparable thereto, and for no other purpose. Lessee shall not
                use or permit the use of the Premises in a manner that is
                unlawful, created damage, waste of a nuisance, or that disturbs
                owners and/or occupants of, causes damaged to neighboring
                properties. Lessor shall not unreasonably withhold or delay its
                consent to any written request for a modification of the Agreed
                Use, so long as the same will not impair the structural
                integrity of the improvements on the Premises or the mechanical
                or electrical systems therein, is not significantly more
                burdensome to the Premises. If Lessor elects to withhold
                consent, Lessor shall within five (5) business days after such
                request give written notification of same, which notice shall
                include an explanation of Lessor's objections to the change in
                use.

        6.2     Hazardous Substances.

                (a)     Reportable Uses Require Consent. The Term "Hazardous
                        Substance" as used in this Lease shall mean any product,
                        substance, or waste whose presence, use, manufacture,
                        disposal, transportation, or release, either by itself
                        or in combination with other materials expected to be on
                        the Premises, is either: (i) potentially injurious to
                        the public health, safety or welfare, the environment or
                        the Premises, (ii) regulated or monitored by any
                        governmental authority, or (iii) a basis for potential
                        liability of Lessor to any governmental agency or third
                        party under any applicable statue or common law theory.
                        Hazardous Substances shall include, but not limited to,
                        hydrocarbons, petroleum, gasoline, and/or crude oil or
                        any products, by products or fractions thereof. Lessee
                        shall not engage in any activity in or on the Premises
                        which constitutes a Reportable Use of Hazardous
                        Substances without the express prior written consent of
                        Lessor and timely compliance (at Lessee's expense) with
                        all Applicable Requirements. "Reportable Use" shall mean
                        (i) the installation or use of any above or below ground
                        storage tank, (ii) the generation, possession, storage,
                        use transportation, or disposal of a Hazardous Substance
                        that requires a permit from, or with respect to which a
                        report, notice, registration or business plan is
                        required to be filed with, any governmental authority,
                        and/or (iii) the presence at the Premises of a Hazardous
                        Substance with respect to which any Applicable
                        Requirements requires that a notice be given to persons
                        entering or occupying the Premises or neighboring
                        properties. Notwithstanding the foregoing, Lessee may
                        use any ordinary and customary materials

<PAGE>   4

                        reasonably required to be used in the normal course of
                        the Agreed Use, so long as such is in compliance with
                        all Applicable Requirement, is not a Reportable use, and
                        does not expose the Premises or neighboring property to
                        any meaningful risk of contamination or damage or expose
                        Lessor to any liability therefore. In addition, lessor
                        may condition its consent to any Reportable Use upon
                        receiving such additional assurances as Lessor
                        reasonably deems necessary to protect itself, the
                        public, the Premises and/or the environment against
                        damage, contamination, injury and/or liability,
                        including, but not limited to, the installation (and
                        removal on or before Lease expiration or termination) of
                        protective modifications (such as concrete encasements)
                        and/or increasing the Security Deposit.

                (b)     Duty to Inform Lessor. If Lessee knows, or has
                        reasonable cause to believe, that hazardous Substance
                        has come to be located in, on under or about the
                        Premises, other than as previously consented by Lessor,
                        Lessee shall immediately give written notice of such
                        fact to Lessor, and provide Lessor with a copy of any
                        report, notice, claim or other documentation which it
                        has concerning the presence of such Hazardous Substance.

                (c)     Lessee Remediation. Lessee shall not cause or permit any
                        Hazardous Substance to be spilled or release in, on
                        under, or about the Premises (including throughout the
                        plumbing or sanitary sewer system) and shall promptly,
                        at Lessee's expense, take all investigatory and/or
                        remedial action reasonably recommended, whether or not
                        formally ordered or required, for the cleanup of any
                        contamination of, and for the maintenance, security
                        and/or monitoring of the Premises or neighboring
                        properties, that was caused or materially contributed to
                        by Lessee, or pertaining to or involving any Hazardous
                        Substance brought on the Premises during the term of
                        this Lease, by or for Lessee, or any third party.

                (d)     Lessee Indemnification. Lessee shall indemnify, defend
                        and hold Lessor, its agents, employees, lenders and
                        ground lessor, if any, harmless from and against any and
                        all loss of rent and/or damages, liabilities,
                        judgements, claims, expenses, penalties, and attorneys'
                        and consultants' fees arising out of or involving any
                        Hazardous Substance brought onto the Premises by or for
                        Lessee, or any third party (provided, however, the
                        Lessee shall have no liability under this Lease with
                        respect to underground migration of any Hazardous
                        Substance under the Premises from adjacent properties).
                        Lessee's obligations shall include, not be limited to,
                        the effects of any contamination or injury to person,
                        property or the environment created or suffered by
                        Lessee, and the cost of investigation, removal,
                        remediation, restoration, restoration and/or abatement,
                        and shall survive the expiration or termination of this
                        Lease. No termination, cancellation or release agreement
                        entered into by Lessor and Lessee shall release Less
                        from it obligations under the Lease with respect to
                        Hazardous substances, unless specifically so agreed by
                        Lessor in writing at the time of such agreement.

                (e)     Lessor Indemnification. Lessor and its successors and
                        assigns shall indemnify, defend, reimburse and hold
                        Lessee, its employees and lenders, harmless from and
                        against any and all environmental damages, including the
                        cost of remediation, which existed as a result of
                        Hazardous Substances on the Premises prior to the Start
                        Date or which are caused by the gross negligence or will
                        misconduct of Lessor, its agents or employees. Lessor's
                        obligations, as and when required by the Applicable
                        Requirements, shall include but not be limited to, the
                        cost of investigation, removal, remediation, restoration
                        and/or abatement, and shall survive the expiration or
                        termination of this Lease.

                (f)     Investigations and Remediations. Lessor shall retain the
                        responsibility and pay for any investigations or
                        remediation measures required by governmental entities
                        having jurisdiction with respect to the existence of
                        Hazardous Substances on the Premises prior to the Start
                        Date, unless such remediation measure is required as a
                        result of Lessee's use (including "Alterations", as
                        defined in paragraph 7.3(a) below) of the Premises, in
                        which event lessee shall be responsible for such
                        payment. Lessee shall cooperate fully in any such
                        activities at the request of Lessor, including allowing
                        Lessor and Lessor's agents to have reasonable access to
                        the Premises at reasonable times in order to carry out
                        Lessor's investigative and remedial responsibilities.

                (g)     Lessor Termination Option. If a Hazardous Substance
                        Condition occurs during the term of this Lease, unless
                        Lessee is legally responsible therefore (in which case
                        Lessee shall make the investigation and remediation
                        thereof required by the Applicable Requirements and this
                        Lease shall continue in full force and effect, but
                        subject to Lessor's right under Paragraph 6.2(d) and
                        Paragraph 13), Lessor may, at Lessor's option, either
                        (i) investigate and remediate such Hazardous Substance
                        Condition, if required, as soon as reasonably possible
                        at Lessor's expense, in which event this Lease shall
                        continue in full force and effect, or (ii) if the
                        estimated cost to remediate such condition exceeds
                        twelve (12) times the then monthly Base Rent or
                        $100,000, whichever is greater, give written notice to
                        Lessee, within thirty (30) days after receipt by Lessor
                        of knowledge of the occurrence of such Hazardous
                        Substance Condition, of Lessor's desire to terminate
                        this Lease as of the date sixty (60) days following the
                        date of such notice. In the event Lessor elects to give
                        a termination notice, Lessee may, within ten (10) days
                        thereafter, give written notice to Lessor of Lessee's
                        commitment to pay the amount by which the cost of the
                        remediation of such Hazardous Substance Condition
                        exceeds an amount equal to twelve (12) times the then
                        monthly Base Rent or $100,000,

<PAGE>   5

                        whichever is greater. Lessee shall provide Lessor with
                        said funds or satisfactory assurance thereof within
                        thirty (30) days following such commitment. In such
                        event, this Lease shall provide Lessor with said funds
                        or satisfactory assurance thereof within thirty (30)
                        days following such commitment. In such event, this
                        Lease shall continue in full force and effect, and
                        Lessor shall proceed to make such remediation as soon as
                        reasonably possible after the required funds are
                        available. If lessee does not give such notice and
                        provide the required funds or assurance thereof within
                        the time provided, this Lease shall terminate as of the
                        date specified in Lessor's notice of termination.

        6.3     Lessee's Compliance with Applicable Requirements. Except as
                otherwise provided in this Lease, Lessee shall, at Lessee's sole
                expense, fully, diligently and in a timely manner, materially
                comply with all Applicable Requirements, the requirements of any
                applicable fire insurance underwriter or rating bureau, and the
                recommendations of Lessor's engineers and/or consultants which
                relate in any manner to the Premises, without regard to whether
                said requirements are now in effect or become effective after
                the Start Date. Lessee shall, within ten (10 days after receipt
                of Lessor's written request, provide Lessor with copies of all
                permits and other documents, and other information evidencing
                Lessee's compliance with any Applicable Requirements specified
                by Lessor, and shall immediately upon receipt, notify Lessor in
                writing (with copies of any documents involved) of any
                threatened or actual claim, notice, citation, warning, complaint
                or report pertaining to or involving the failure of Lessee or
                the Premises to comply with any Applicable Requirements.

        6.4     Inspection; Compliance. Lessor and Lessor's "Lender" (as defined
                in Paragraph 30 below) and consultants shall have the right to
                enter into Premises at any time, in the case of an emergency,
                and otherwise at reasonable times with proper notice to Lessee
                for the purpose of inspecting the condition of the Premises and
                for verifying compliance by Lessee with this Lease. The cost of
                any such inspections shall be paid by Lessor, unless a violation
                of Applicable Requirements, or a contamination is found to exist
                or be imminent, or the inspection is requested or ordered by a
                governmental authority. In such case, Lessee shall upon request
                reimburse Lessor for the cost of such inspections, so long as
                such inspection is reasonably related to the violation or
                contamination.

7.      Maintenance; Repairs, Utility Installations: Trade Fixtures and
        Alterations.

        7.1     Lessee's Obligations.

                (a)     In General. Subject to the provisions of Paragraph 2.2
                        (Condition), 2.3 (Compliance), 6.3 (Lessee's Compliance
                        with Applicable Requirements), 7.2 (Lessor's
                        Obligations), 9 (Damage or Destruction), and 14
                        (Condemnation), Lessee shall, at Lessee's sole expense,
                        keep the Premises, Utility Installations, and
                        Alterations in good order, condition and repair (whether
                        or not the portion of the Premises requiring repairs, or
                        the means of repairing the same, are reasonably or
                        readily accessible to lessee, and whether or not the
                        need for such repairs occurs as a result of Lessee's
                        use, any prior use, the elements or the age of such
                        portion of the Premises), including, but not limited to,
                        all equipment or facilities, such as plumbing, heating,
                        ventilating, air-conditioning, electrical, lighting
                        facilities, boilers, pressure vessels, fire protection
                        system, fixtures, walls (interior and exterior),
                        foundations, ceilings, roofs, floors, windows, doors,
                        plate glass, skylights, landscaping, driveways, parking
                        lots, fences, retaining walls, signs, sidewalks and
                        parkways located in, on or adjacent to the Premises.
                        Lessee, in keeping the Premises in good order, condition
                        and repair, shall exercise and perform good maintenance
                        practices, specifically including the procurement and
                        maintenance of the service contracts required by
                        Paragraph 7.1(b) below. Lessee's obligations shall
                        include restorations, replacements or renewals when
                        necessary to keep the Premises and all improvements
                        thereon or a part thereof in good order, condition and
                        state of repair. Lessee shall, during the term of this
                        Lease, keep the exterior appearance of the Building in a
                        first-class condition consistent with the exterior
                        appearance of other similar facilities of-comparable age
                        and size in the vicinity, including, when necessary, the
                        exterior repainting of the Building.

                (b)     Service Contracts. Lessee shall, at Lessee's sole
                        expense, procure and maintain contracts with copies to
                        Lessor, in customary form and substance for, and with
                        contractors specializing and experienced in the
                        maintenance of the following equipment improvements
                        ("Basic Elements"), if any, if and when installed on the
                        Premises: (I) HVAC equipment, (iii) fire extinguishing
                        systems, including fire alarm and/or smoke detection,
                        (iv) landscaping and irrigation systems, (v) roof
                        covering and drains, (vi) driveways and parking lots,
                        (viii) clarifiers, and (ix) any other equipment, if
                        reasonably required by Lessor.

                (c)     Replacement. Subject to Lessee's indemnification of
                        Lessor as set forth in Paragraph 8.7 below, and without
                        relieving Lessee of liability resulting from Lessee's
                        failure to exercise and perform good maintenance
                        practices, if the Basic Elements described in Basic
                        Elements shall be replaced by Lessor, and the cost
                        thereof shall be prorated between the Parties and Lessee
                        shall only be obligated to pay, each month during the
                        remainder of the term of this Lease, on the date on
                        which Base Rent is due, an amount equal to the product
                        of multiplying the cost of such replacement by a
                        fraction, the numerator of which in one, and the
                        denominator of which is the number of months of the
                        useful life of such replacement as such useful life is
                        specified pursuant to Federal income tax regulations or
                        guidelines for depreciation thereof (including interest
                        on the unamortized balance as

<PAGE>   6

                        is then commercially reasonable in the judgment of
                        Lessor's accountants), with Lessee reserving the right
                        to prepay its obligation at any time.

        7.2     Lessor's Obligations. Subject to the provisions of Paragraphs
                2.2 (Condition), 2.3 (Compliance), 9 (Damage or Destruction) and
                14 (Condemnation), it is intended by the Parties hereto that
                Lessor have no obligation, in any manner whatsoever, to repair
                and maintain the Premises, or the equipment therein, all of
                which obligations are intended to be that of the Lessee. It is
                the intention of the Parties that the terms of this Lease govern
                the respective obligations of the Parties as to maintenance and
                repair of the Premises, and they expressly waive the benefit of
                any statute now or hereafter in effect to the extent it is
                inconsistent with the terms of this Lease.

        7.3     Utility Installations; Trade Fixtures; Alteration.

                (a)     Definitions; Consent Required. The term "Utility
                        Installations" refers to all floor and window coverings,
                        air lines, power panels, electrical distribution,
                        security and fire protection systems, communication
                        systems, lighting fixtures, HVAC equipment, plumbing,
                        and fencing in or on the Premises. The term
                        "Trade-Fixtures' shall mean Lessee's machinery and
                        equipment that can be removed without doing material
                        damage to the Premises. The term "Alterations" shall
                        mean any modification of the improvements, other than
                        Utility Installations or Trade Fixtures, whether by
                        addition or deletion. "Lessee Owned Alterations and/or
                        Utility Installations" are defined as Alterations and/or
                        Utility Installations made by Lessee that are not yet
                        owned by Lessor pursuant to Paragraph 7.4(a). Lessee
                        shall not make any Alterations or Utility Installations
                        to the Premises without Lessor's prior written consent.
                        Such consent shall not be unreasonably withheld and
                        shall be deemed to be given if Lessor does not respond
                        in writing to such request within ten (10) days. Lessee
                        may, however, make non-structural Utility Installations
                        to the interior of the premises (excluding the roof)
                        without such consent by upon notice to Lessor, as long
                        as they are not visible from the outside, do not involve
                        puncturing, relocating or removing the roof or any
                        existing walls, and the cumulative cost thereof during
                        this Lease as extended does not exceed $50,000 in the
                        aggregate or $10,000 in any one year.

                (b)     Consent. Any Alterations or Utility Installations that
                        Lessee shall desire to make and which require the
                        consent of the Lessor shall be presented to Lessor in
                        written from with detailed plans. Consent shall be
                        deemed conditioned upon Lessee's: (i) acquiring all
                        applicable governmental permits, (ii) furnishing Lessor
                        with copies of both the permits and the plans and
                        specifications prior to commencement of the work, and
                        (iii) compliance with all conditions of said permits and
                        other Applicable Requirements in a prompt and
                        expeditious manner. Any Alterations or Utility
                        Installations shall be performed in a workmanlike manner
                        with good and sufficient materials. Lessee shall
                        promptly upon completion furnish Lessor with as-build
                        plans and specifications. For work which costs and
                        amount equal to the greater of one month's Base Rent, or
                        $10,000, Lessor may condition its consent upon Lessee
                        providing a lien and completion bond in an amount equal
                        to one and one-half times the estimated cost of such
                        Alteration or Utility Installation and/or upon Lessees'
                        posting an additional Security Deposit with Lessor.

                (c)     Indemnification. Lessee shall pay, when due, all claims
                        for labor or materials furnished or alleged to have been
                        furnished to or for Lessee at or for use on the
                        Premises, which claims are or may be secured by any
                        mechanic's or materialmen's lien against the Premises or
                        any interest therein. Lessee shall give Lessor not less
                        than ten (10) days' notice prior to the commencement of
                        any work in, on or about the Premises, and Lessor shall
                        have the right to post notices of non-responsibility. If
                        Lessee shall contest the validity of any such lien,
                        claim or demand, then Lessee shall, at its sole expense
                        defend and protect itself Lessor and the Premises
                        against the same and shall pay and satisfy any such
                        adverse judgment that may be rendered thereon before the
                        enforcement thereof. If Lessor shall require, Lessee
                        shall furnish a surety bond in an amount equal to one
                        and one-half times the amount of such contested lien,
                        claim or demand, indemnifying Lessor against liability
                        for the same. If lessor elects to participate in any
                        such action, Lessee shall pay Lessor's attorneys' fees
                        and costs.

        7.4     Ownership; Removal; Surrender; and Restoration.

                (a)     Ownership. Subject to Lessor's right to require removal
                        or elect ownership as hereinafter provided, all
                        Alterations and Utility Installations made by Lessee
                        shall be the property of Lessee, but considered a part
                        of the Premises. Lessor may, at any time, elect in
                        writing to be the owner of all or any specified part of
                        the Lessee Owned Alterations and Utility Installations.
                        Unless otherwise instructed per Paragraph 7.4(b) hereof,
                        all Lessee Owned Alterations and Utility Installations
                        shall, at the expiration or termination of this Lease,
                        become the property of Lessor and be surrendered by
                        Lessee Owned Alterations and Utility Installations
                        shall, at the expiration or termination of this Lease,
                        become the property of Lessor and be surrendered by
                        Lessee with the Premises.

<PAGE>   7

                (b)     Removal. By delivery to Lessee of written notice from
                        Lessor not earlier than ninety (90) and not later than
                        thirty (30) days prior to the end of the term of this
                        Lease, Lessor may require that any or all Lessee Owned
                        Alterations or Utility Installations be removed by the
                        expiration or termination of this Lease. Lessor may
                        require the removal at any time of all or any part of
                        any Lessee Owned Alterations or Utility Installations
                        made without the required consent.

                (c)     Surrender/Restoration. Lessee shall surrender the
                        Premises by the Expiration Date or any earlier
                        termination date, with all of the improvements, parts
                        and surfaces thereof broom clean and free of debris, and
                        in good operating order, condition and state of repair,
                        ordinary wear and tear accepted. "Ordinary wear and
                        tear" shall not include any damage or deterioration that
                        would have been prevented by good maintenance practice.
                        Lessee shall repair and damage occasioned by the
                        installation, maintenance or removal of Trade Fixtures,
                        Lessee Owned Alterations and/or Utility Installations,
                        furnishings, and equipment as well as the removal of any
                        storage tank installed by or for Lessee, and the
                        removal, replacement , or remediation of any soil,
                        material or groundwater contaminated by Lessee. Trade
                        Fixtures shall remain the property of Lessee and shall
                        be removed by Lessee. The failure by Lessee to timely
                        vacate the Premises pursuant to this Paragraph 7.4(c)
                        without the express written consent of Lessor shall
                        constitute a holdover under the provisions of Paragraph
                        26 below.

8.      Insurance; Indemnity.

        8.1     Payment for Insurance. Lessee shall pay for all insurance
                required under Paragraph 8 except to the extent of the cost
                attributable to liability Insurance carried by Lessor under
                Paragraph 8.2(b) in excess of $2,000,000 per occurrence.
                Premiums for policy periods commencing prior to or extending
                beyond the Lease term shall be prorated to correspond to the
                Lease term. Payment shall be made by Lessee to Lessor within ten
                (10) days following receipt of an invoice.

        8.2     Liability Insurance.

                (a)     Carried by lessee. Lessee shall obtain and keep in force
                        a Commercial General Liability Policy of Insurance
                        protecting Lessee and Lessor against claims for bodily
                        injury, personal injury and property damaged based upon
                        or arising out of the ownership, use, occupancy or
                        maintenance of the Premises and all areas appurtenant
                        thereto. Such insurance shall be on an occurrence basis
                        providing single limit coverage in an amount not less
                        that $1,000,000 per occurrence with and "Additional
                        Insured-Managers or Lessors of Premises Endorsement" and
                        contain the "Amendment of the Pollution Exclusion
                        Endorsement" for damaged caused by heat, smoke or fumes
                        from a hostile fire. The Policy shall not contain any
                        intra-insured exclusions as between insured persons or
                        organizations, but shall include coverage for liability
                        assumed under this Lease as an "insured contract" "or
                        the performance of Lessee's indemnity obligations under
                        the Lease. The limits of said insurance shall not,
                        however, limit the liability of Lessee nor relieve
                        Lessee of any obligation hereunder. All insurance
                        carried by Lessee shall be primary to and not
                        contributory with any similar insurance carried by
                        Lessor, which insurance shall be considered excess
                        insurance on.

                (b)     Carried by Lessor. Lessor shall maintain liability
                        insurance as described in Paragraph 8.2(a), in addition
                        to, and not in lieu of, the insurance required to be
                        maintained by Lessee. Lessee shall not be named as an
                        additional insured therein.

        8.3     Property Insurance - Building, Improvements and Rental Value.

                (a)     Building and Improvements. The Insuring Party shall
                        obtain and keep in force a policy or policies in the
                        name of Lessor, with loss payable to Lessor, any
                        groundlessor, and to any Lender(s) insuring loss or
                        damage to the Premises. The amount of such insurance
                        shall be equal to the full replacement cost of the
                        Premises, as the same shall exist from time to time, or
                        the amount required by any Lenders, but in no event more
                        than the commercially reasonable and available insurable
                        value thereof. If Lessor is the Insuring Party, however,
                        Lessee Owned Alterations and Utility Installations,
                        Trade Fixtures, and Lessee's personal property shall be
                        insured by Lessee under Paragraph 8.4 rather than by
                        Lessor. If the coverage is available commercially
                        appropriate, such policy or policies shall insure
                        against all risks of direct physical loss or damage
                        (except the perils of flood and/or earthquake unless
                        required by a Lender), including coverage for debris
                        removal and the enforcement of any Applicable
                        Requirements requiring the upgrading, demolition,
                        reconstruction or replacement of any portion of the
                        Premises as the result of a covered loss. Said policy or
                        policies shall also contain and agreed valuation
                        provision in lieu of any coinsurance clause, waiver of
                        subrogation, and inflation guard protection causing an
                        increase in the annual property insurance coverage
                        amount by a factor of not less than the adjusted U.S.
                        Department of Labor Consumer Price Index for All Urban
                        Consumers for the city nearest to where the Premises are
                        located. If such insurance coverage as a deductible
                        clause, the deductible amount shall not exceed $1,000
                        per occurrence, and Lessee shall be liable for such
                        deductible amount in the event of an Insured Loss.

                (b)     Rental Value. the Insuring Party shall obtain and keep
                        in force a policy or policies in the name of Lessor with
                        loss payable to Lessor and any Lender, insuring the loss
                        of the full Rent for (1) year. Said insurance shall

<PAGE>   8

                        provide that in the event the Lease is terminated by
                        reason of an insured loss, the period of indemnity for
                        such coverage shall be extended beyond the date of the
                        completion of repairs of replacement of the Premises, to
                        provide for one full year's loss or Rent from the date
                        of any such loss. Said insurance shall contain an agreed
                        valuation provision in lieu of any coinsurance clause,
                        and the amount of coverage shall be adjusted annually to
                        reflect the projected Rent otherwise payable by Lessee,
                        for the next twelve (12) month period. Lessee shall be
                        liable for any deductible amount in the event of such
                        loss.

                (c)     Adjacent Premises. If the Premises are part of a larger
                        building, or of a group of buildings owned by Lessor
                        which are adjacent to the Premises, the Lessee shall pay
                        for any increase in the premiums for the property
                        insurance of such building or buildings if said increase
                        is caused by Lessee's act, omissions, use or occupancy
                        of the Premises.

        8.4     Lessee's Property/Business Interruption Insurance.

                (a)     Property Damage. Lessee shall obtain and maintain
                        insurance coverage on all of Lessee's personal property,
                        Trade Fixtures, and Lessee owned Alterations and Utility
                        Installations. Such insurance shall be full replacement
                        cost coverage with a deductible of not to exceed $1,000
                        per occurrence. The proceeds from any such insurance
                        shall be used by Lessee for the replacement of person
                        property, Trade Fixtures and Lessee Owned Alterations
                        and Utility Installations. Lessee shall provide Lessor
                        with written evidence that such insurance is in force.

                (b)     Business Interruption. Lessee shall obtain and maintain
                        loss of income and extra expense insurance in amounts as
                        will reimburse Lessee for direct or indirect loss of
                        earnings attributable to all perils commonly insured
                        against by prudent lessees in the business of Lessee or
                        attributable to prevention of access to the Premises as
                        a result of such perils.

                (c)     No Representation of Adequate Coverage. Lessor makes no
                        representation that the limits or forms of coverage of
                        insurance specified herein are adequate to cover
                        Lessee's property, business operations or obligations
                        under this Lease.

        8.5     Insurance Policies. Insurance required herein shall be by
                companies duly licensed or admitted to transact business in the
                state where the Premises are located, maintaining during the
                policy term "General Policyholders Rating" of at least B+, V, as
                set forth in the most current issue of "Best's Insurance Guide",
                or such other rating as may be required by Lender. Lessee shall
                not do or permit to be done anything which invalidates the
                required insurance policies. Lessee shall, prior to the State
                Date, deliver to Lessor certified copies of policies of such
                insurance or certificates evidencing the existence and amounts
                of the required insurance. No such policy shall be cancelable or
                subject to modification except after thirty (30) days prior
                written notice to Lessor. Lessee shall, at least thirty (30)
                days prior to the expiration of such policies, furnish Lessor
                with evidence of renewals or "insurance" binders" evidencing
                renewal thereof, or Lessor may order such insurance and charge
                the cost thereof to Lessee, which amount shall be payable by
                Lessee to Lessor upon demand. Such policies shall be for a term
                of at least one year, or the length of the remaining term of
                this Lease, whichever is less. If either Party shall fail to
                procure and maintain the insurance required to be carried by it,
                the other Party may, but shall not be required to, procure and
                maintain the same.

        8.6     Waiver of Subrogation. Without affecting any other rights or
                remedies, Lessee and Lessor each hereby release and relieve the
                other, and waive their entire right to recover damages against
                the other, for loss of or damaged to its property arising out of
                or incident to the perils required to be insured against herein.
                The effect of such releases and waivers is not limited by the
                amount of insurance carried or required, or by any deductibles
                applicable hereto. The Parties agree to have their respective
                property damage insurance carriers waive any right to
                subrogation that such companies may have against Lessor or
                Lessee, as the case may be, so long as the insurance is not
                invalidated thereby.

        8.7     Indemnity. Except for Lessor's gross negligence or willful
                misconduct, Lessee shall indemnify, protect, defend and hold
                harmless the Premises, lessor and its agents, Lessor's master or
                ground lessor, partners and Lenders, from and against any and
                all claims, loss of rents and/or damages, liens, judgments,
                penalties, attorneys' and consultants' fees, expenses and/or
                liabilities arising out of, involving, or in connection with,
                the use and/or occupancy of the Premises by Lessee. If any
                action or proceeding is brought against Lessor by reason of any
                of the foregoing matters, Lessee shall upon notice defend the
                same at Lessee's expense by counsel reasonably satisfactory to
                lessor and Lessor shall cooperate with Lessee in such defense.
                Lessor need not have first paid any such claim in order to be
                defended or indemnified.

        8.8     Exemption of Lessor from Liability. Lessor shall not be liable
                for injury or damage to the person or goods, wares, merchandise
                or other property of Lessee, Lessee's employees, contractors,
                invites, customers, or any other person in or about the
                Premises, whether such damage or injury is caused by or results
                from fire, steam, electricity, gas, water or rain, or from the
                breakage, leakage, obstruction or other defects of pipes, fire
                sprinklers, wires appliances, plumbing, HVAC or lighting
                fixtures, or from any other cause, whether the said injury or
                damaged results from conditions arising upon the Premises or
                upon other portions of the Building of which the Premises are a
                part, or from other sources or places. Lessor shall not be
                liable for any damages arising from any act or neglect of any
                other tenant of Lessor. Notwithstanding Lessor's negligence or
                breach of this Lease, Lessor shall under no circumstances be
                liable for injury to lessee's business or for any loss of income
                or profit therefrom.

9.      Damage or Destruction.

<PAGE>   9

        9.1     Definitions.

                (a)     "Premises Partial Damage" shall mean damage or
                        destruction to the improvements on the Premises, other
                        than Lessee Owned Alterations and Utility Installations,
                        which can reasonably be repaired in six (6) months or
                        less from the date of damage or destruction. Lessor
                        shall notify Lessee in writing within thirty (30) days
                        from the date of the damage or destruction as to whether
                        or not the damage is Partial or Total.

                (b)     "Premises Total Destruction" shall mean damage or
                        destruction to the Premises, other than Lessee owned
                        Alterations and Utility Installation and Trade Fixtures,
                        which cannot reasonably be repaired in six (6) months or
                        less from the date of the damage or destruction. Lessor
                        shall notify lessee in writing within thirty (30) days
                        from the date of the damage or destruction as to whether
                        or not the damage is Partial or Total.

                (c)     "Insured Loss" shall mean damage or destruction to
                        improvements on the Premises, other than Lessee Owned
                        Alterations and Utility Installations and Trade
                        Fixtures, which was caused by an event required to be
                        covered by the insurance described in Paragraph 8.3(a),
                        irrespective of any deductible amounts or coverage
                        limits involved.

                (d)     "Replacement Cost" shall mean the cost to repair or
                        rebuild the improvements owned by Lessor at the time of
                        the occurrence to their condition existing immediately
                        prior thereto, including demolition, debris removal and
                        upgrading required by the operation of Applicable
                        Requirements, and without deduction for depreciation.

                (e)     "Hazardous Substance Condition" shall mean the
                        occurrence or discovery of a condition involving the
                        present of, or a contamination by a Hazardous Substance
                        as defined in Paragraph 6.2(a), in, on, or under the
                        Premises.

        9.2     Partial Damaged - Insured Loss. If a Premises Partial Damage
                that is an Insured Loss occurs, then Lessor shall, at Lessor's
                expense, repair such damage (but not Lessee's Trade Fixtures or
                Lessee Owned Alterations and Utility Installations) as soon as
                reasonably possible and this Lease shall continue in full force
                and effect; provided, however, that Lessee shall, at Lessor's
                election, make the repair of any damage or destruction the total
                cost to repair of which is $10,000 or less, and in such event,
                Lessor shall make any applicable insurance proceeds available to
                Lessee on a reasonable basis for that purpose. Notwithstanding
                the foregoing, if the required insurance was not in force or the
                insurance proceeds are not sufficient to effect such repair, the
                Insuring Party shall promptly contribute the shortage in
                proceeds (except as to the deductible which is Lessee's
                responsibility) as and when required to complete said repairs.
                In the event, however, such shortage was due to the fact that,
                by reason of the unique nature of the improvements, full
                replacement cost insurance coverage was not commercially
                reasonable and available, Lessor shall have no obligation to pay
                for the shortage in insurance proceeds or to fully restore the
                unique aspects of the Premises unless Lessee provides Lessor
                with the funds to cover same, or adequate assurance thereof,
                within ten (10) days following receipt of written notice of such
                shortage and request therefore. If Lessor receives said funds or
                adequate assurance thereof within said ten (10) day period, the
                party responsible for making the repairs shall complete them as
                soon as reasonably possible and this Lease shall remain in full
                force and effect. If such funds or assurance are not received,
                Lessor may nevertheless elect by written notice to lessee within
                ten (10) days thereafter to: (i) make such restoration and
                repair as is commercially reasonable with lessor paying any
                shortage in proceeds, in which case this Lease shall remain in
                full force and effect; or (ii) have this Lease terminate thirty
                (30) days thereafter. Lessee shall not be entitled to
                reimbursement of any funds contributed by Lessee to repair any
                such damage or destruction. Premises Partial Damage due to flood
                or earthquake shall be subject to paragraph 9.3, notwithstanding
                that there may be some insurance overage, but the net proceeds
                of any such insurance shall be made available for the repairs if
                made by either Party.

        9.3     Partial Damage - Uninsured Loss. If a Premises Partial Damage
                that is not an Insured Loss occurs, unless caused by a negligent
                or willful act of Lessee (in which event Lessee shall make the
                repairs at Lessee's expense), Lessor may either: (i) repair such
                damage as soon as reasonably possible at Lessor's expense, in
                which event this lease shall continue in full force and effect,
                or (ii) terminate this Lease by giving written notice to Lessee
                within thirty (30) days after receipt by Lessor of Knowledge of
                the occurrence of such damage. Such termination shall be effect
                sixty (60) days following the date of such notice. In the event
                Lessor elects to terminate this Lease, Lessee shall have the
                right within ten (10) days after receipt of the termination
                notice to give written notice to lessor of Lessee's commitment
                to pay for the repair of such damage without reimbursement from
                Lessor. Lessee shall provide Lessor with said funds or
                satisfactory assurance thereof within thirty (30) days after
                making such commitment. In such event this Lease shall continue
                in full force and effect, and lessor shall proceed to make such
                repairs as soon as reasonably possible after the required funds
                are available. If lessee does not make the required commitment,
                this lease shall terminate as of the date specified in the
                termination notice.

        9.4     Total Destruction. Notwithstanding any other provision hereof,
                if a Premises Total Destruction occurs, this Lease shall
                terminate sixty (60) days following such Destruction. If the
                damage or destruction was caused by the gross negligence or
                willful misconduct of Lessee, Lessor shall have the right to
                recover Lessor's damages from Lessee, except as provided in
                Paragraph 8.6.

        9.5     Damage Near End of Term. If at any time during the last six (6)
                months of this Lease there is damage for which the cost to
                repair exceeds on (1) month's Base Rent, whether or not an
                Insured Loss, Lessor may terminate this Lease effective sixty
                (60) days following the date of occurrence of such damage by
                giving a written termination notice to Lessee within thirty (30)
                days after the date of occurrence of such damage.
                Notwithstanding the foregoing, if Lessee at that time has an
                exercisable option to extend this Lease or to purchase the
                Premises, then Lessee may preserve this Lease by, (a) exercising
                such option and (b) providing Lessor

<PAGE>   10

                with any shortage in insurance proceeds )or adequate assurance
                thereof) needed to make the repairs on or before the earlier of
                (i) the date which is ten days after lessee's receipt of
                Lessor's written notice purporting to terminate this Lease, or
                (ii) the day prior to the date upon which such option expires.
                If Lessee duly exercises such option during such period and
                provides Lessor with funds (or adequate assurance thereof) to
                cover any shortage in insurance proceeds, Lessor shall, at
                Lessor's commercially reasonable expense, repair such damage as
                soon as reasonably possible and this Lease shall continue in
                full force and effect. If lessee fails to exercise such option
                and provide such funds or assurance during such period, then
                this Lease shall terminate on the date specified in the
                termination notice and Lessee's option shall be extinguished.

        9.6     Abatement of Rent; lessee's Remedies.

                (a)     Abatement. In the event of Premises Partial Damage or
                        Premises Total Destruction or a Hazardous Condition for
                        which Lessee is not responsible under this Lease, the
                        Rent payable by Lessee for the period required for the
                        repair, remediation or restoration of such damage shall
                        be abated in proportion to the degree to which lessee's
                        use of the Premises is impaired, but not to exceed the
                        proceeds received from the Rental Value insurance. All
                        other obligations of Lessee hereunder shall be performed
                        by Lessee, and Lessor shall have no liability for any
                        such damage, destruction, remediation, repair or
                        restoration except as provided herein.

                (b)     Remedies. If Lessor shall be obligated to repair or
                        restore the Premises and does not commence, in a
                        substantial and meaningful way, such repair or
                        restoration within thirty (30) days after such
                        obligation shall accrue, Lessee may, at any time prior
                        to the commencement of such repair or restoration, give
                        written notice to Lessor and to any Lenders of which
                        Lessee has actual notice, of Lessee's election to
                        terminate this Lease on a date not less than sixty (60)
                        days following the giving of such notice. If Lessee has
                        actual notice, of Lessee's election to terminate this
                        Lease on a date not less than sixty (60) days following
                        the giving of such notice. If Lessee give such notice
                        and such repair or restoration is not commenced within
                        thirty (30) days thereafter, this Lease shall terminate
                        as of the date specified in said notice. If the repair
                        or restoration is commenced within said thirty (30)
                        days, this Lease shall continue in full force and effect
                        "Commence" shall mean either the unconditional
                        authorization of the preparation of the required plans,
                        or the beginning of the actual work on the Premises,
                        whichever first occurs.

        9.7     Termination-Advance Payments. Upon termination of this Lease
                pursuant to paragraph 6.2(g) or Paragraph 9, an equitable
                adjustment shall be made concerning advance Base Rent and any
                other advance payments made by Lessee to Lessor, Lessor shall,
                in addition, return to Lessee so much of Lessee's Security
                Deposit as has not been, or is not then required to be used by
                Lessor.

        9.8     Waive Statutes. Lessor and Lessee agree that the terms of this
                Lease shall govern the effect of any damaged to or destruction
                of the Premises with respect to the termination of this Lease
                and hereby waive the provisions of any present or future statute
                to the extent inconsistent herewith.

10.     Real Property Taxes.

        10.1    Definition of "Real Property Taxes." As used herein, the term
                "Real Property Taxes" shall include any form of assessment; real
                estate, general special, ordinary or extraordinary, or rental
                levy or tax (other than inheritance, personal income or estate
                taxes); improvement bond; and/or license fee imposed upon or
                levied against any legal or equitable interest of Lessor in the
                Premises, Lessor's right to other income therefrom, and/or
                Lessors business of leasing, by any authority having the direct
                or indirect power to tax and where the funds are generated with
                reference to the Building address and where the proceeds so
                generated are to be applied by the city, county or other local
                taxing authority of a jurisdiction within which the Premises are
                located. The term "Real Property Taxes" shall also include any
                tax, fee, levy, assessment or charge, or any increase therein,
                imposed by reason of events occurring during the term of this
                Lease, including but not limited to a change in the ownership of
                the Premises.

        10.2

                (a)     Payment of Taxes. Lessee shall pay the Real Property
                        Taxes applicable to the Premises during the term of this
                        Lease. Subject to paragraph 10.2(b), all such payments
                        shall be made at least ten (10) days prior to any
                        delinquency date. Lessee shall promptly furnish lessor
                        with satisfactory evidence that such taxes have been
                        paid. If any such taxes shall cover any period of time
                        prior to or after the expiration or termination of this
                        Lease, Lessee's share of such taxes shall be prorated to
                        cover only that portion of the tax bill applicable that
                        this lease is in effect, and Lessor shall reimburse
                        Lessee for any overpayment. If Lessee shall fail to pay
                        any required Real Property Taxes, Lessor shall have the
                        right to pay the same, and Lessee shall reimburse Lessor
                        therefore upon demand.

                (b)     Advance Payment. In the event Lessee incurs a late
                        charge on any Rent payment, Lessor may, at Lessor's
                        option, estimate the current Real Property Taxes, and
                        require that such taxes be paid in advance to Lessor by
                        Lessee, either: (1) in a lump sum amount equal to the
                        installment due, at least twenty (20) days prior to the
                        applicable delinquency date, or (ii) monthly in advance
                        with the payment of the Base Rent. If Lessor elects to
                        require payment monthly in advance, the monthly payment
                        shall be an amount equal to the amount of the estimated
                        installment of taxes divided by he number of month
                        remaining before the month in which said installment
                        becomes delinquent. When the actual amount of the
                        applicable tax bill is know, the amount of such equal
                        monthly advance payments shall be adjusted as required
                        to provide the funds needed to pay the applicable taxes.
                        If the amount collected by Lessor is insufficient to pay
                        such Real Property Taxes when due, Lessee shall pay
                        Lessor, upon demand, such additional sums as are
                        necessary to pay such obligations. All moneys paid to
                        Lessor under this paragraph may be intermingled with
                        other moneys of Lessor ad shall not bear interest. In
                        the event of a Breach by Lessee in the performance of
                        its obligations

<PAGE>   11

                        under this Lease, then any balance of funds paid to
                        Lessor under the provisions of this Paragraph may at the
                        option of Lessor by treated as an additional Security
                        Deposit.

        10.3    Joint Assessment. if the Premises are not separately assessed,
                Lessee's liability shall be an equitable proportion of the Real
                Property Taxes for all of the land and improvements included
                within the tax parcel assessed, such proportion to be
                conclusively determined by Lessor from the respective valuations
                assigned in the assessor's work sheets or such other information
                as may be reasonably available.

        10.4    Personal Property Taxes. Lessee shall pay, prior to delinquency,
                all taxes assessed against and levied upon Lessee Owned
                Alterations, Utility Installations, Trade Fixtures, furnishings,
                equipment and all personal property of Lessee. When possible,
                Lessee shall cause such property to be assessed and billed
                separately from the real property of Lessor. If any of Lessee's
                said personal property shall be assessed with Lessor's real
                property, Lessee shall pay Lessor the taxes attributable to
                lessee's property within ten (10) days after receipt of a
                written statement.

11.     Utilities. Lessee shall pay for all water, gas, heat, light power,
        telephone, trash disposal and other utilities and services supplied to
        the Premises, together with any taxes thereon. if any such services are
        not separately metered to Lessee, lessee shall pay a reasonable
        proportion, to be determined by Lessor, of all charges jointly metered.

12.     Assignment and Subletting

        12.1    Lessor's Consent Required.

                (a)     Lessee shall not voluntarily or by operation of law
                        assign, transfer, mortgage or encumber )collectively,
                        "assign or assignment") or sublet all or any part of
                        Lessee's interest in this lease or in the Premises
                        without Lessor's prior written consent.

                (b)     A change in the control of Lessee shall constitute an
                        assignment requiring consent. The transfer, on a
                        cumulative basis of twenty-five percent (25%) or more of
                        the voting control of Lessee shall constitute a change
                        in control for this purpose.

                (c)     An assignment or subletting without consent shall, at
                        Lessor's option, be a Default curable after notice per
                        Paragraph 12.1(c), or a noncurable Breach without the
                        necessity of any notice and grace period. If Lessor
                        elects to treat such unapproved assignment or subletting
                        as a noncurable Breach, Lessor may either: (i) terminate
                        this lease, or (ii) upon (30) days written notice,
                        increase the monthly Base Rent to one hundred ten
                        percent (110%) of the Base Rent then in effect. Further,
                        in the event of such Breach and rental adjustment, (i)
                        the purchase price of any option to purchase the
                        Premises held by Lessee shall be subject to similar
                        adjustment to one hundred ten percent (110%) of the
                        price previously in effect, and (ii) all fixed and
                        non-fixed rental adjustments scheduled during the
                        remainder of the Lease term shall be increased to One
                        Hundred Ten Percent (110%) of the scheduled adjusted
                        rent.

                (e)     Lessee's remedy for any breach of Paragraph 12.1 by
                        Lessor shall be limited to compensatory damages and/or
                        injunctive relief.

        12.2    Terms and Conditions Applicable to Assignment and Subletting.

                (a)     Regardless of Lessor's consent, any assignment or
                        subletting shall not: (i) be effective without the
                        express written assumption by such assignee or sublessee
                        of the obligations of Lessee under this Lease, (ii)
                        release Lessee of any obligations hereunder, or (iii)
                        after the primary liability of Lessee for the payment of
                        Rent or for the performance of any other obligations to
                        be performed by Lessee.

                (b)     Lessor may accept Rent or performance of Lessee's
                        obligations from any person other than Lessee pending
                        approval or disapproval of an assignment. Neither a
                        delay in the approval or disapproval of such assignment
                        nor the acceptance of Rent or performance shall
                        constitute a waiver or estoppel of Lessor's right to
                        exercise its remedies for lessee's Default or Breach.

                (c)     Lessor's consent to any assignment or subletting shall
                        not constitute a consent to any subsequent assignment or
                        subletting.

                (d)     In the event of any Default or Breach by Lessee, Lessor
                        may proceed directly against Lessee, any Guarantors or
                        anyone else responsible for the performance of Lessee's
                        obligations under this Lease, including any assignee or
                        sublessee, without first exhausting Lessor's remedies
                        against any other person or entity responsible therefore
                        to Lessor, or any security held by Lessor.

                (e)     Each request for consent to an assignment or subletting
                        shall be in writing, accompanied by information relevant
                        to Lessor's determination as to the financial and
                        operational responsibility and appropriateness of the
                        proposed assignee or sublessee, including but not
                        limited to the intended use and/or require modification
                        of the premises, if any, together with a fee of $1,000
                        or ten percent (10%) of the current monthly Base Rent
                        applicable to the portion of the Premises which is the
                        subject of the proposed assignment or sublease,
                        whichever is greater, as consideration for Lessor's
                        considering and processing said request. Lessee agrees
                        to provide Lessor with such other or additional
                        information and/or documentation as may be reasonably
                        requested.

                (f)     Any assignee of, or sublessee under, this Lease shall,
                        by reason of accepting such assignment or entering into
                        such sublease, be deemed to have assumed and agreed to
                        conform and comply with each and every term, covenant,
                        condition and obligation herein to be observed or
                        performed by Lessee during the term of said assignment
                        or sublease, other than such obligations as are contrary
                        to or inconsistent with provisions of an assignment or
                        sublease to which Lessor has specifically consented to
                        in writing.

<PAGE>   12

        12.3    Additional Terms and Conditions Applicable to Subletting. The
                following terms and conditions shall apply to any subletting by
                Lessee of all or any part of the Premises and shall be deemed
                included in all subleases under this Lease whether or not
                expressly incorporated therein:

                (a)     Lessee hereby assigns and transfers to Lessor all of
                        Lessee's interest in all Rent payable on any sublease,
                        and Lessor may collect such Rent and apply same toward
                        Lessee's obligations under this lease; provided,
                        however, that until a Breach shall occur in the
                        performance of Lessee's obligations, Lessee may collect
                        said Rent. Lessor shall not, by reason of foregoing or
                        any assignment of such sublease, nor by reason of the
                        collection of Rent, be deemed liable to the sublease for
                        any failure of Lessee to perform and comply with any of
                        Lessee's obligations to such sublessee. Lessee hereby
                        irrevocably authorizes and directs any such sublessee,
                        upon receipt of a written notice from Lessor stating
                        that a Breach exists in the performance of Lessee's
                        obligations under this Lease, to pay to Lessor all Rent
                        due and to become due under the sublease. Sublessee
                        shall rely upon any such notice from Lessor and shall
                        pay all Rents to Lessor without any obligation or right
                        to inquire as to whether such Breach exists,
                        notwithstanding any claim from Lessee to the contrary.

                (b)     In the event of a Breach by Lessee, Lessor may, at its
                        option, require sublessee to attorn to Lessor, in which
                        event Lessor shall undertake the obligations of the
                        sublessor under such sublease from the time of the
                        exercise of said option to the expiration of such
                        sublease; provided, however, lessor shall not be liable
                        for any prepaid rents or security deposit paid by such
                        sublessee to such sublessor or for any prior Defaults or
                        Breaches of such sublessor.

                (c)     Any matter requiring the consent of the sublessor under
                        a sublease shall also require the consent of Lessor.

                (d)     No sublessee shall further assign or sublet all or any
                        part of the Premises without Lessor's prior written
                        consent.

                (e)     Lessor shall deliver a copy of any notice of Default or
                        Breach by lessee to the sublessee, who shall have the
                        right to cure the Default of Lessee within the grace
                        period, if any, specified in such notice. The sublessee
                        shall have a right of reimbursement and offset from and
                        against Lessee for any such Defaults cured by the
                        sublessee.

13.     Default; Breach; Remedies.

        13.1    Default; Breach. A "Default" is defined as a failure by the
                Lessee to comply with or perform any of the terms, covenants,
                conditions or rules under this Lease. A "Breach" is defined as
                the occurrence of one or more of the following Defaults , and
                the failure of Lessee to cure such Default within any applicable
                grace period:

                (a)     The abandonment of the Premises; or the vacating of the
                        Premises without providing a commercially reasonable
                        level of security, or where the coverage of the property
                        insurance described in Paragraph 8.3 is jeopardized as a
                        result thereof, or without providing reasonable
                        assurances to minimize potential vandalism.

                (b)     The failure of Lessee to make any payment of Rent or any
                        Security Deposit required to be made by Lessee
                        hereunder, whether to Lessor or to a third party, when
                        due, to provide reasonable evidence of insurance or
                        surety bond, or to fulfill any obligation under this
                        Lease which endangers or threatens life or property,
                        where such failure continues for a period of three (3)
                        business days following written notice to Lessee.

                (c)     The failure by Lessee to provide (i) reasonable written
                        evidence of compliance with Applicable Requirements,
                        (ii) the service contracts, (iii) the rescission of an
                        unauthorized assignment or subletting, (iv) a Estoppel
                        Certificate, (v) a requested subordination, (vi)
                        evidence concerning any guaranty and/or Guarantor, (vii)
                        any document requested under Paragraph 42 (easements),
                        or (viii) any other documentation or information which
                        Lessor may reasonably require of Lessee under the terms
                        of this Lease, where any such failure continues for a
                        period of ten (10) days following written notice to
                        Lessee, unless such non-compliance is beyond the control
                        of Lessee.

                (d)     A Default by Lessee as to the terms, covenants,
                        conditions or provisions of this Lease, or of the rules
                        adopted under Paragraph 40 hereof, other than those
                        described in subparagraphs 13.1(a), (b) or (c), above,
                        where such Default continues for a period of forty-five
                        (45) days after written notice; provided, however, that
                        if the nature of Lessee's Default is such that more than
                        forty-five (45) days are reasonably required for its
                        cure, then it shall not be deemed to be a Breach if
                        Lessee commences such cure within said forty-five (45)
                        day period and thereafter diligently prosecutes such
                        cure to completion.

                (e)     the occurrence of any of the following events: (i) the
                        making of any general arrangement or assignment for the
                        benefit of creditors; (ii) becoming a "debtor" as
                        defined in 11 U.S.C. Section 101 or any successor
                        statute thereto (unless, in the case of a petition filed
                        against Lessee, the same is dismissed within sixty (60)
                        days); (iii) the appointment of a trustee or receiver to
                        take possession of substantially all of Lessee's assets
                        located at the Premises or of Lessee's interest in this
                        Lease, where possession is not restored to Lessee within
                        thirty (30) days; or (iv) the attachment, execution or
                        other judicial seizure of substantially all of lessee's
                        assets located at the Premises or of Lessee's interest
                        in this Lease, where such seizure is not discharged
                        within thirty (30) days; provided, however, in the event
                        that any provision of this subparagraph (e) is contrary
                        to any applicable law, such provision shall be of no
                        force or effect, and not affect the validity of the
                        remaining provisions.

                (f)     The discovery that any financial statement of lessee or
                        of any Guarantor given to Lessor was materially false.

                (g)     If the performance of Lessee's obligations under this
                        Lease is guaranteed (i) the death of a Guarantor, (ii)
                        the termination of a Guarantor's liability with respect
                        to this Lease other than in accordance with the terms of
                        such guaranty, (iii)

<PAGE>   13

                        a Guarantor's becoming insolvent or the subject of a
                        bankruptcy filing, (iv) a Guarantor's refusal to honor
                        the guaranty, or (v) a Guarantor's breach of its
                        guaranty obligation on an anticipatory basis, and
                        Lessee's failure, within sixty (60) days following
                        written notice of any such event, to provide written
                        alternative assurance or security, which, when coupled
                        with the then existing resources of Lessee, equals or
                        exceeds the combined financial resources of Lessee and
                        the Guarantors that existed at the time of execution of
                        this Lease.

        13.2    Remedies. If Lessee fails to perform any of its affirmative
                duties or obligations, within ten (10) days after written notice
                (or in of an emergency, without notice), Lessor may, at its
                option, perform such duty or obligation on Lessee's behalf,
                including but not limited to the obtaining of reasonably
                required bonds, insurance policies, or governmental licenses,
                permits or approvals. The costs and expenses of any such
                performance by Lessor shall be due and payable by Lessee upon
                receipt of invoice therefore. If any check give to Lessor by
                Lessee shall not be honored by the bank upon which it is drawn,
                Lessor, at its option, may require all future payments to be
                made by Lessee to be by cashier's check. In the event of a
                Breach, Lessor may, with or without further notice or demand,
                and without limiting Lessor in the exercise of any right or
                remedy which Lessor may have by reason of such Breach:

                (a)     Terminate Lessee's right to possession of the Premises
                        by any lawful means, in which case this Lease shall
                        terminate and Lessee shall immediately surrender
                        possession to Lessor. In such event Lessor shall be
                        entitled to recover from Lessee (i) the unpaid Rent
                        which had been earned at the time of termination (ii)
                        the worth at the time of award of the amount by which
                        the unpaid rent which would have been earned after
                        termination until the time of award exceeds the amount
                        of such rental loss that the Lessee proves could have
                        been reasonably avoided; (iii) the worth at the time of
                        award of the amount by which the unpaid rent for the
                        balance of the term after the time of award exceeds the
                        amount of such rental loss that the Lessee proves could
                        be reasonably avoided; and (iv) any other amount
                        necessary to compensate Lessor for all the detriment
                        proximately caused by the Lessee's failure to perform
                        its obligations under the Lease or which in the ordinary
                        course of things would be likely to result therefrom,
                        including but not limited to the cost of recovering
                        possession of the Premises, expenses of reletting,
                        including necessary renovation and alteration of the
                        Premises, reasonable attorneys' fees, and that portion
                        of any leasing commission paid by Lessor in connection
                        with this Lease applicable to the unexpired term of this
                        Lease. The worth at the time of award of the amount
                        referred to in provision (iii) of the immediately
                        preceding sentence shall be computed by discounting such
                        amount at the discount rate of the Federal Reserve Bank
                        of the District within which the Premises are located at
                        the time of award plus one percent (1%). Efforts by
                        Lessor to mitigate damages caused by lessee's Breach of
                        this Lease shall not waive Lessor's right to recover all
                        or any part thereof in a separate suit. If a notice and
                        grace period required under Paragraph 13.1 was not
                        previously given, a notice to pay rent or quit, or to
                        perform or quit given to Lessee under the unlawful
                        detainer statute shall also constitute the notice
                        required by Paragraph 13.1 In such case, the applicable
                        grace period required by paragraph 13.1 and the unlawful
                        detainer statute shall run concurrently, and the failure
                        of Lessee to cure the Default within the greater of the
                        two such grace periods shall constitute both an unlawful
                        detainer and a Breach of this Lease entitling Lessor to
                        the remedies provided for in this Lease and/or by said
                        statute.

                (b)     Continue the Lease and lessee's right to possession and
                        recover the Rent as it becomes due, in which event
                        Lessee may sublet or assign, subject only to reasonable
                        limitations. Acts of maintenance, efforts to relet,
                        and/or the appointment of a receiver to protect the
                        Lessor's interests, shall not constitute a termination
                        of the lessee's right to possession.

                (c)     Pursue any other remedy now or hereafter available under
                        the laws or judicial decisions of the state wherein the
                        Premises are located. The expiration or termination of
                        this Lease and/or the termination of Lessee's right to
                        possession shall not relieve Lessee from liability under
                        any indemnity provisions of this Lease as to matter
                        occurring or accruing during the term hereof or by
                        reason of Lessee's occupancy of the Premises.

        13.3    Inducement Recapture. Any agreement for free or abated rent or
                other charges, or for the giving or paying by Lessor to or for
                Lessee of any cash or other bonus, inducement or consideration
                for Lessee's entering into this Lease, all of which concessions
                are hereinafter referred to as "Inducement Provisions," shall be
                deemed conditioned upon Lessee's full and faithful performance
                of all of the terms, covenants and conditions of this Lease.
                Upon Breach of this Lease by Lessee, any such Inducement
                Provision shall automatically be deemed deleted from this Lease
                and of no further force or effect, and any rent, other charge,
                bonus, inducement or consideration theretofore abated, given or
                paid by Lessor under such an Inducement Provision shall be
                immediately due and payable by Lessee to Lessor, notwithstanding
                any subsequent cure of said Breach by Lessee. The acceptance by
                Lessor of rent or the cure of the Breach which initiated the
                operation of this paragraph shall not be deemed a waiver by
                Lessor of the provisions of this paragraph unless specifically
                so stated in writing by Lessor at the time of such acceptance.

        13.4    Late Charges. Lessee hereby acknowledges that late payment by
                Lessee of Rent will cause Lessor to incur costs not contemplated
                by this Lease, the exact amount of which will be extremely
                difficult to ascertain. Such costs include, but are not limited
                to, processing and accounting charges, and late charges which
                may be imposed upon Lessor by any Lender. Accordingly, if any
                Rent shall not be received by lessor within five (5) days after
                such amount shall be due, then, without any requirement for
                notice to lessee, Lessee shall pay to lessor a one-time late
                charge equal to five percent (5%) of each such overdue amount.
                The parties hereby agree that such late charge represents a fair
                and reasonable estimate of the costs Lessor will incur by reason
                of such

<PAGE>   14

                late payment. Acceptance of such late charge by Lessor shall in
                no even constitute a waiver of Lessee's Default or Breach with
                respect to such overdue amount, nor prevent the exercise of any
                of the other rights and remedies granted hereunder. In the event
                that a late charge is payable hereunder, whether or not
                collected, for three (3) consecutive installments of Base Rent,
                then notwithstanding any provision of this Lease to the
                contrary, Base Rent shall, at Lessor's option, become due and
                payable quarterly in advance.

        13.5    Interest. Any monetary payment due Lessor hereunder, other than
                late charges, not received by Lessor within thirty (30) days
                following the date on which it was due, shall bear interest from
                the thirty-first (31st) day after it was due. The interest
                ("Interest") charged shall be equal to the prime rate reported
                in the Wall Street Journal as published closest prior to the
                date when due plus our percent (4%), but shall not exceed the
                maximum rate allowed by law. Interest is payable in addition to
                the potential late charge provided for in paragraph 13.4.

        13.6    Breach by Lessor.

                (a)     Notice of Breach. Lessor shall not be deemed in breach
                        of this Lease unless Lessor fails within a reasonable
                        time to perform an obligation required to be performed
                        by Lessor. For purposes of this Paragraph, a reasonable
                        time shall in no event be less than thirty (30) days
                        after receipt by Lessor, and any Lender whose name and
                        address shall have been furnished Lessee in writing for
                        such purpose, of written notice specifying wherein such
                        obligation of Lessor has not been performed; provided,
                        however, that if the nature of Lessor's obligation is
                        such that more than thirty (30) days are reasonably
                        required for its performance, the Lessor shall not be in
                        breach if performance is commenced within such thirty
                        (30) day period and thereafter diligently pursued to
                        completion.

                (b)     Performance by Lessee on Behalf of Lessor. In the event
                        that neither Lessor nor Lender cures said breach within
                        thirty (30) days after receipt of said notice, or if
                        having commenced said cure they do not diligently pursue
                        it to completion, then Lessee may elect to cure said
                        breach at Lessee's expense and offset from Rent on
                        amount equal to the greater of one month's Base Rent or
                        the Security Deposit, and to pay in excess of such
                        expense under protest, reserving Lessee's right to
                        reimbursement from Lessor. Lessee shall document the
                        cost of said cure and supply said documentation to
                        Lessor.

14.     Condemnation. If the Premises or any portion thereof are taken under the
        power of eminent domain or sold under the threat of the exercise of said
        power (collectively "Condemnation"), this Lease shall terminate as to
        the part taken as for the date the condemning authority takes title or
        possession, whichever first occurs. If more than ten percent (10%) of
        any building portion of the premises, or more than twenty-five percent
        (25%) of the land area portion of the premises not occupied by any
        building, is taken by Condemnation, Lessee may, at Lessee's option, to
        be exercised in writing within ten (10) days after Lessor shall have
        given Lessee written notice of such taking (or in the absence of such
        notice, within ten (10) days after the condemning authority shall have
        taken possession) terminate this Lease as of the date the condemning
        authority takes such possession. If Lessee does not terminate this Lease
        in accordance with the foregoing, this Lease shall remain in full force
        and effect as to the portion of the Premises remaining, except that the
        Base Rent shall be reduced in proportion to the reduction in utility of
        the Premises caused by such condemnation. Condemnation awards and/or
        payments shall be the property of Lessor, whether such award shall be
        made as compensation for diminution in value of the leasehold, the value
        of the part taken, or for severance damages; provided, however, that
        Lessee shall be entitled to any compensation for Lessee's relocation
        expenses, loss of business goodwill and/or Trade Fixtures, without
        regard to whether or not this Lease is terminated pursuant to the
        provisions of this Paragraph. All Alterations and Utility Installations
        made to the Premises by Lessee, for purposes of Condemnation only, shall
        be considered the property of the Lessee and Lessee shall be entitled to
        any and all compensation which is payable therefore. In the event that
        this Lease is not terminated by reason of the Condemnation, Lessor shall
        repair any damaged to the Premises caused by such Condemnation.

15.     Broker's Fee.

        15.1    Additional Commission. In addition to the payments owed pursuant
                to Paragraph 1.10 above, and unless Lessor and the Brokers
                otherwise agree in writing, lessor agrees that: (a) if Lessee
                exercises any Option, (b) if Lessee acquires any rights to the
                Premises or other premises owned by Lessor and located within
                the same Project, if any, within which the Premises is located,
                (c) if Lessee remains in possession of the Premises, with the
                consent of Lessor, after the expiration of this Lease, or (d) if
                Base Rent is increased, whether by agreement or operation of an
                escalation clause herein, then, Lessor shall pay Brokers a fee
                in accordance with the schedule of said Brokers in effect at the
                time of the execution of this Lease.

        15.2    Assumption of obligations. Any buyer or transferee of Lessor's
                interest in this Lease shall be deemed to have assumed Lessor's
                obligation hereunder. Each Broker shall be a third party
                beneficiary of the provisions of Paragraphs 1.10, 15, 22 and 31.
                If Lessor fails to pay to a Broker any amounts due as and for
                commissions pertaining to this lease when due, then such amounts
                shall accrue Interest. In addition, if Lessor fails to pay any
                amounts to Lessee's Broker when due, Lessee's Broker may send
                written notice to Lessor and lessee of such failure and if
                Lessor fails to pay such amounts within ten (10) days after said
                notice, lessee shall pay said monies to its Broker and offset
                such amounts against Rent. In addition, Lessee's Broker shall be
                deemed to be a third party beneficiary of any commission
                agreement entered into by and/or between Lessor and Lessor's
                Broker.

        15.3    Representations and indemnities of Broker Relationships. Lessee
                and Lessor each represent and warranty to the other that it has
                had no dealings with any person, firm, broker or finder (other
                than the Brokers, if any) in connection with this Lease, and
                that no one other than said named brokers is entitled to any
                commission or finder's fee in connection herewith. Lessee

<PAGE>   15

                and Lessor do each hereby agree to indemnify, protect, defend
                and hold the other harmless from and against liability for
                compensation or charges which may be claimed by any such unnamed
                broker, finder or to her similar party by reason of any dealings
                or actions of the indemnifying Party, including any costs,
                expenses, attorneys' fees reasonably incurred with respect
                thereto.

16.     Estoppel Certificates.

                (a)     Each Party (as "Responding Party") shall within ten (10)
                        days after written notice from the other Party (the
                        "Requesting Party") execute, acknowledge and deliver to
                        the Requesting Party a statement in writing in form
                        similar to the then most current "Estoppel Certificate"
                        from published by the American Industrial Real Estate
                        Association, plus such additional information,
                        confirmation and/or statements as may be reasonably
                        requested by the Requesting Party.

                (b)     If the Responding Party shall fail to execute or deliver
                        the Estoppel Certificate within such ten day period, the
                        Requesting Party may execute an Estoppel Certificate
                        stating that: (i) the Lease is in full force and effect
                        without modification except as may be represented by the
                        Requesting party, (ii) there are not uncured defaults in
                        the Requesting Party's performance, and (iii) if Lessor
                        is the Requesting party, not more than one month's rent
                        has been paid in advance. Prospective purchasers and
                        encumbrances may rely upon the Requesting Party's
                        Estoppel Certificate, and the Responding Party shall be
                        estopped from denying the truth of the fact contained in
                        said Certificate.

                (c)     If Lessor desires to finance, refinance, or sell the
                        Premises, or any part thereof, lessee and all Guarantors
                        shall deliver to any potential lender or purchaser
                        designed by Lessor such financial statements as may be
                        reasonably required by such lender or purchaser,
                        including but not limited to Lessee's financial
                        statements for the past three (3) years. All such
                        financial statements shall be received by Lessor and
                        such lender or purchaser in confidence and shall be used
                        only for the purposes herein set forth.

17.     Definition of Lessor. The term "Lessor" as used herein shall mean the
        owner or owners at the time in question of the fee title to the
        Premises, or, if this is a sublease, of the Lessee's interest in the
        prior lease. In the event of a transfer of Lessor's title or interest in
        the Premises or this Lease, Lessor shall deliver to the transferee or
        assignee (in cash or by credit) any unused Security Deposit held by
        Lessor. Except as provided in Paragraph 15, upon such transfer or
        assignment and delivery of the Security Deposit, as aforesaid, the prior
        Lessor shall be relieved of all liability with respect to the
        obligations and/or covenants under this Lease thereafter to be performed
        by the Lessor. Subject to the foregoing, the obligations and/or
        covenants in this Lease to be performed by the Lessor shall be binding
        only upon the Lessor as hereinabove defined. Notwithstanding the above,
        and subject to the provisions of Paragraph 20 below, the original Lessor
        under this Lease, and all subsequent holders of the Lessor's interest in
        this Lease shall remain liable and responsible with regard to the
        potential duties and liabilities of lessor pertaining to Hazardous
        Substances as outline in Paragraph 6 above.

18.     Severability. The invalidity of any provision of this Lease, as
        determined by a court of competent jurisdiction, shall in no way affect
        the validity of any other provision hereof.

19.     Days. Unless otherwise specifically indicated to the contrary, the word
        "days" as used in this Lease shall mean and refer to calendar days.

20.     Limitation on Liability. Subject to the provisions of Paragraph 17
        above, the obligations of Lessor or Lessee under this Lease shall not
        constitute personal obligations of Lessor or Lessee, the individual
        partners of Lessor or Lessee or its or their individual partners,
        directors, officers or shareholders, and Lessee shall look to the
        Premises, and to no other assets of Lessor for the satisfaction of any
        liability of Lessor with respect to this Lease, and shall not seek
        recourse against the individual partners of lessor, or its or their
        individual partners, directors, officers or shareholders, or any of
        their personal assets for such satisfaction.

21.     Time of Essence. Time is of the essence with respect to the performance
        of all obligations to be performed or observed by the parties under this
        Lease.

22.     No Prior or Other Agreements; Broker Disclaimer. This Lease contains all
        agreements between the Parties with respect to any matter mentioned
        herein, and no other prior or contemporaneous agreement or understanding
        shall be effective. Lessor and lessee each represents and warrants to
        the Brokers that it has made, and is relying solely upon, its own
        investigation as to the nature, quality, character and financial
        responsibility of the other Party to this Lease and as to the nature,
        quality and character of the Premises. Brokers have no responsibility
        with respect thereto or with respect to any default or breach hereof by
        either Party. The liability (including court costs and Attorneys' fees),
        of any Broker with respect to negotiation, execution, delivery or
        performance by either Lessor or Lessee under this Lease or any amendment
        or modification hereto shall be limited to an amount up to the fee
        received by such Broker pursuant to this Lease; provided, however, that
        the foregoing limitation on each Broker's liability shall not be
        applicable to any gross negligence or willful misconduct of such Broker.

23.     Notices

        23.1    Notice Requirements. All notices required or permitted by this
                Lease shall be in writing and may be delivered in person (by
                hand or by courier) or may be sent by regular, certified or
                registered mail or U.S. Postal Service Express Mail, with
                postage prepaid, or by facsimile transmission, and shall be
                deemed sufficiently given if served in a manner specified in
                this Paragraph 23. The addresses noted adjacent to a Party's
                signature on this Lease shall be that Party's address for
                delivery or mailing of notices. Either Party may by written
                notice to the other specify a different address for notice,
                except that upon

<PAGE>   16

                Lessee's taking possession of the Premises, the Premises shall
                constitute Lessee's address for notice. A copy of all notices to
                Lessor shall be concurrently transmitted to such party or
                parties at such addresses as Lessor may from time to time
                hereafter designate in writing.

        23.2    Date of Notice. Any notice sent by registered or certified mail,
                return receipt requested, shall be deemed given on the date of
                delivery shown on the receipt card, or if no delivery date is
                shown, the postmark thereon. If sent by regular mail the notice
                shall be deemed given forty-eight (48) hours after the same is
                addressed as required herein and mailed with postage prepaid.
                Notices delivered by United States Express Mail or overnight
                courier that guarantee next day delivery shall be deemed given
                twenty-four (24) hours after delivery of the same to the Postal
                Service or courier. Notices transmitted by facsimile
                transmission or similar means shall be deemed delivered upon
                telephone confirmation of receipt, provided a copy is also
                delivered via delivery or mail. If notice is received on a
                Saturday, Sunday or legal holiday, it shall be deemed received
                on the next business day.

24.     Waivers. No waiver by lessor of the Default or Breach of any term,
        covenant or condition hereof by lessee, shall be deemed a waiver of any
        other term, covenant or condition hereof. Lessor's consent to, or
        approval of, any act shall not be deemed to render unnecessary the
        obtaining of Lessor's consent to or approval of, any subsequent or
        similar act by Lessee, or be construed as the basis of an estoppel to
        enforce the provision or provisions of this Lease requiring such
        consent. The acceptance of Rent by Lessor shall not be a waiver of any
        default or Breach by Lessee. Any payment by Lessee may be accepted by
        Lessor on account of moneys or damages due Lessor, notwithstanding any
        qualifying statements or conditions made by Lessee in connection
        therewith, which such statements and/or conditions shall be of no force
        or effect whatsoever unless specifically agreed to in writing by Lessor
        at or before the time of deposit of such payment.

25.     Recording. Either Lessor or Lessee shall, upon request of the other,
        execute, acknowledge and deliver to the other a short form memorandum of
        this Lease for recording purposes. The Party requesting recordation
        shall be responsible for payment of any fees applicable thereto.

26.     No Right To Holdover. Lessee has no right to retain possession of the
        Premises or any part thereof beyond the expiration or termination of
        this Lease. In the event that Lessee holds over, then the Base Rent
        shall be increased to one hundred fifty percent (150%) of the Base Rent
        applicable during the month immediately preceding the expiration or
        termination. Nothing contained herein shall be construed as consent by
        Lessor to any holding over by Lessee.

27.     Cumulative Remedies. No remedy or election hereunder shall be deemed
        exclusive but shall, wherever possible, be cumulative with all other
        remedies at law or in equity.

28.     Covenants and Conditions; Construction of Agreement. All provisions of
        this Lease to be observed or performed by Lessee are both covenants and
        conditions. In construing this Lease, all heading and titles are for the
        convenience of the parties only and shall not be considered a part of
        this Lease. Whenever required by the context, the singular shall include
        the plural and vice versa. This Lease shall not be construed as if
        prepared by one of the parties, but rather according to its fair meaning
        as a whole, as if both parties had prepared it.

29.     Binding Effect; Choice of Law. This Lease shall be binding upon the
        parties, their personal representatives, successors and assigns and be
        governed by the laws of the State in which the Premises are located. Any
        litigation between the Parties hereto concerning this Lease shall be
        initiated in the county in which the Premises are located.

30.     Subordination; Attornment; Non-Disturbance.

        30.1    Subordination. This Lease and any Option granted hereby shall be
                subject and subordinate to any ground lease, mortgage, deed of
                trust, or other hypothecation or security device (collectively,
                "Security Device"), now or hereafter placed upon the Premises,
                to any and all advances made on the security thereof, and to all
                renewals, modifications, and extensions thereof. Lessee agrees
                that the holders of any such Security Devices (in this Lease
                together referred to as "Lender") shall have no liability or
                obligation to perform any of the obligations of Lessor under
                this Lease. Any Lender may elect to have this lease and/or any
                Option granted hereby superior to the lien of its Security
                Device by giving written notice thereof to Lessee, whereupon
                this Lease and such Options shall be deemed prior to such
                Security Device, notwithstanding the relative dates of the
                documentation or recordation thereof.

        30.2    Attornment. Subject to the non-disturbance provisions of
                Paragraph 30.3, Lessee agrees to attorn to a Lender or any other
                party who acquires ownership of the Premises by reason of a
                foreclosure of a Security Device, and that in the event of such
                foreclosure, such new owner shall not: (i) be liable for any act
                or omission of any prior lessor or with respect to events
                occurring prior to acquisition of ownership; (ii) be subject to
                any offsets or defenses which Lessee might have against any
                prior lessor, or (iii) be bound by prepayment of more than (1)
                month's rent.

        30.3    Non-Disturbance. With respect to Security Devices entered into
                by Lessor after the execution of this Lease, Lessee's
                subordination of this Lease shall be subject to receiving a
                commercially reasonable non-disturbance agreement (a
                "Non-Disturbance Agreement") from the Lender which
                Non-Disturbance Agreement provides that Lessee's possession of
                the Premises, and this Lease, including any options to extend
                the term hereof, will not be disturbed so long as Lessee is not
                in Breach hereof and attorns to the record owner of the
                Premises. Further, within sixty (60) days after the execution of
                this Lease, Lessor shall use its commercially reasonable efforts
                to obtain a Non-Disturbance Agreement from the holder of any
                pre-existing Security Device

<PAGE>   17

                which is secured by the Premises. In the event that Lessor is
                unable to provide the Non-Disturbance Agreement within said
                sixty (60) days, then Lessee may, at Lessee's option, directly
                contact Lessor's lender and attempt to negotiate for the
                execution and delivery of a Non-Disturbance Agreement.

        30.4    Self-Executing. The agreements contained in this paragraph 30
                shall be effective without the execution of any further
                documents; provided, however, that, upon written request from
                Lessor or a Lender in connection with a safe, financing or
                refinancing of the Premised, Lessee and Lessor shall execute
                such further writings as my be reasonably required to separately
                document any subordination, attornment and/or Non-Disturbance
                Agreement provided herein.

31.     Attorneys' Fees. If any Party or Broker brings an action or proceeding
        involving the Premises to enforce the terms hereof or to declare right
        hereunder, the Prevailing Party (as hereafter defined) in any such
        proceeding, action, or appeal thereon, shall be entitled to reasonable
        attorneys fees. Such fees may be awarded in the same suit or recovered
        in a separate suit, whether or not such action or proceeding is pursued
        to decision or judgment. The term, "Prevailing Party" shall include
        without limitation, a Party or Broker who substantially obtains or
        defeats the relief sought, as the case may be, whether by compromise,
        settlement, judgment, or the abandonment by the other Party or Broker of
        its claim or defense. The attorneys' fees award shall not be computed in
        accordance with any court fee schedule, but shall be such as to fully
        reimburse all attorneys' fees reasonably incurred. In addition, Lessor
        shall be entitled to attorneys' fees, costs and expenses incurred in the
        preparation and service of notices of Default and consultations in
        connection therewith, whether or not a legal action is subsequently
        commenced in connection with such Default or resulting Breach.

32.     Lessor's Access; Showing Premises; Repairs. Lessor and Lessor's agents
        shall have the right to enter the Premises at any time, in the case of
        an emergency, and otherwise at reasonable times for the purpose of
        showing the same to prospective purchasers, lenders, or lessees, and
        making such alterations, repairs, improvements or additions to the
        Premises as Lessor may deem necessary. All such activities shall be
        without abatement of rent or liability to lessee. Lessor may at any time
        place on the premises any ordinary "For Sale" signs and Lessor may
        during the last six (6) months of the term hereof place on the Premises
        any ordinary "For Lease" signs. Lessee may at any time place on or about
        the Premises any ordinary "For Sublease" sign.

33.     Auctions. lessee shall not conduct, nor permit to be conducted, any
        auction upon the Premises without Lessor's prior written consent. Lessor
        shall not be obligated to exercise any standard of reasonableness in
        determining whether to permit an auction.

34.     Signs. Except for ordinary "For Sublease" signs, lessee shall not place
        any sign upon the premises without Lessor's prior written consent. All
        signs must comply with all Applicable Requirements.

35.     Termination; Merger. Unless specifically stated otherwise in writing by
        Lessor, the voluntary or other surrender of this Lease by Lessee, the
        mutual termination or cancellation hereof, or a termination hereof by
        Lessor for Breach by Lessee, shall automatically terminate any sublease
        or lesser estate in the Premises; provided, however, that Lessor may
        elect to continue any one or all existing subtenancies. Lessor's failure
        within ten(10) days following any such event to elect to the contrary by
        written notice to the holder of any such lesser interest, shall
        constitute Lessor's election to have such event constitute the
        termination of such interest.

36.     Consents. Except as otherwise provided herein, where ever in this Lease
        the consent of a Party is required to act by of for the other Party,
        such consent shall not be unreasonably withheld of delayed. Lessor's
        actual reasonable costs and expenses (including but not limited to
        architects', attorneys', engineers' and other consultants' fees)
        incurred in the consideration of, or response to, a request by Lessee
        for any Lessor consent, including but not limited to consents to an
        assignment, a subletting or the presence or use of a Hazardous
        Substance, shall be paid by Lessee upon receipt of an invoice and
        supporting documentation therefore. Lessor's consent to any act,
        assignment or subletting shall not constitute an acknowledgment that no
        Default or Breach by Lessee of this Lease exists, nor shall such consent
        be deemed a waiver of any then existing Default or Breach, except as may
        be otherwise specifically stated in writing by Lessor at the time of
        such consent. The failure to specify herein any particular condition to
        Lessor's consent shall not preclude the imposition by Lessor at the time
        of consent of such further or other conditions as are then reasonable
        with reference to the particular matter for which consent is being
        given. In the event that either Party disagrees with any determination
        made by the other hereunder and reasonably requests the reasons for such
        determination, the determining party shall furnish its reasons in
        writing and in reasonable detail within ten (10) business days following
        such request.

37.     Guarantor.

        37.1    Execution. The Guarantors, if any shall each execute a guaranty
                in the form most recently published by the American Industrial
                Real Estate Association, and each such Guarantor shall have the
                same obligations as lessee under this Lease.

        37.2    Default. It shall constitute a Default of the Lessee if any
                Guarantor fails or refuses, upon request to provide: (a)
                evidence of the execution of the guaranty, including the
                authority of the party signing on Guarantor's behalf to obligate
                Guarantor, and in the case of a corporate Guarantor, a certified
                copy of a resolution of its board of directors authorizing the
                making of such guaranty, (b) current financial statements, (c) a
                Estoppel Certificate, or (d) written confirmation that the
                guaranty is still in effect.

<PAGE>   18

38.     Quiet Possession. Subject to payment by Lessee of the Rent and
        performance of all of the covenants, conditions and provisions on
        Lessee's part to be observed and performed under this Lease, lessee
        shall have quiet possession and quiet enjoyment of the Premises during
        the term hereof.

39.     Options.

        39.1    Definition. "Option" shall mean: (a) the right to extend the
                term of a or renew this Lease or to extend or renew any lease
                that Lessee has on other property of Lessor; (b) the right of
                first refusal or first offer to lease either the Premises or
                other property of Lessor; (c) the right to purchase or the right
                of first refusal to purchase the premises or other property of
                Lessor.

        39.2    Options personal To Original Lessee. Lessee to provide Lessor
                with documentation that any transferred or assigned options are
                to entities related to Lessee.

        39.3    Multiple Options. In the event that Lessee has any multiple
                Options to extend or renew this Lease, a later Option cannot be
                exercised unless the prior Options have been validly exercised.

        39.4    Effect of Default on Options.

                (a)     Lessee shall have not right to exercise an Option: (i)
                        during the period commencing with the giving of any
                        notice of Default and continuing until said Default is
                        cured, (ii) during the period of time any rent is unpaid
                        (without regard to whether notice thereof is given
                        Lessee), (iii) during the time Lessee is in Breach of
                        this Lease, or (iv) in the event that lessee has been
                        given three (3) or more notices of separate Default,
                        whether or not the Defaults are cured, during the (12)
                        month period immediately preceding the exercise of the
                        Option.

                (b)     The period of time within which an Option may be
                        exercised shall not be extended or enlarged by reason of
                        lessee's inability to exercise an Option because of the
                        provisions of Paragraph 39.4(a).

                (c)     An Option shall terminate and be of no further force or
                        effect, notwithstanding Lessee's due and timely exercise
                        of the Option, if, after such exercise and prior to the
                        commencement of the extended term, (i) Lessee fails to
                        pay Rent or a period of thirty (30) days after such Rent
                        becomes due (without any necessity of Lessor to give
                        notice thereof), (ii) Lessor gives to Lessee three (3)
                        or more notices of separate Default during any twelve
                        912) month period, whether or not the Defaults are
                        cured, or (iii) if Lessee commits a Breach of this
                        lease.

40.     Multiple Buildings. If the Premises are a part of a group of buildings
        controlled by Lessor, Lessee agrees that it will observe all reasonable
        rules and regulations which Lessor may make from time to time for the
        management, safety, and care of said properties, including the care and
        cleanliness of the grounds including the parking, loading and unloading
        of vehicles, and that Lessee will pay its fair share of common expenses
        incurred in connection therewith.

41.     Security Measures. Lessee hereby acknowledges that the rental payable to
        lessor hereunder does not include the cost of guard service or other
        security measures, and that Lessor shall have no obligation whatsoever
        to provide same. Lessee assumes all responsibility for the protection of
        the Premises, Lessee, its agents and invitees and their property from
        the act of third parties.

42.     Reservations. Lessor reserves to itself the right, from time to time, to
        grant, without the consent or joinder of Lessee, such easements, rights
        and dedications that Lessor deems necessary, and to cause the
        recordation of parcel maps and restrictions, so long as such easements,
        rights, dedications, maps and restrictions do not unreasonably interfere
        with the use of the Premises by Lessee. Lessee agrees to sign any
        documents reasonably requested by Lessor to effectuate any such easement
        rights, dedication, map or restrictions.

43.     Authority. If either Party hereto is a corporation, trust, limited
        liability company, partnership, or similar entity, each individual
        executing this Lease on behalf of such entity represents and warrants
        that he or she is duly authorized to execute and deliver this Lease on
        its behalf. Each party shall, within thirty (30) days after request,
        deliver to the other party satisfactory evidence of such authority.

45.     Conflict. Any conflict between the printed provisions of this Lease and
        the typewritten or handwritten provisions shall be controlled by the
        typewritten or handwritten provisions.

46.     Offer. preparation of this Lease by either party or their agent and
        submission of same to the other Party shall not be deemed an offer to
        lease to the other Party. This Lease is not intended to be binding until
        executed and delivered by all parties hereto.

47.     Amendments. This Lease may be modified only in writing, signed by the
        Parties in interest ant the time of the modification. As long as they do
        not materially change Lessee's obligations hereunder, Lessee agrees to
        make such reasonable non-monetary modifications to this Lease as may be
        reasonably required by a Lender in connection with the obtaining of
        normal financing or refinancing of the premises.

48.     Multiple Parties. If more than one person or entity is names herein as
        either Lessor or Lessee, such multiple Parties shall have joint and
        several responsibility to comply with same terms of this Lease.

49.     Mediation and Arbitration of Disputes. An addendum requiring the
        Mediation and/or the Arbitration of all disputes between the Parties
        and/or Brokers arising out of this Lease is not attached to this lease.

The parties hereto have executed this Lease at the place and on the dates
specified above their respective
Signatures:

<PAGE>   19

Executed at:  Torrance California           Executed at:  Rancho Cucamonga, CA
on:  September 20, 1999                              on:  July 1, 1999
By LESSOR:  Capellino/Galleano              By LESSEE:  Sierra Precision, Inc.
By:                                         By:
   ---------------------------------           ---------------------------------
   Richard J. Capellino                        Thomas J. Bell
Title:                                      Title:  President
      ------------------------------
Address:  2020 Del Amo Blvd., Suite 105     Address:  7945 Center Avenue
Torrance, CA  90501                         Rancho Cucamonga, CA  91730
Telephone:  310-320-1234                    Telephone:  909-941-3900
Facsimile:  310-320-8594                    Facsimile:  909-944-7303

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