Document:

<PAGE>

                      [LETTERHEAD OF EARLYCHILDHOOD.COM]

                                                                   EXHIBIT 10.20

Dear Lisa Derian

     In May, 1999 when QTL Corporation and Educational Products, Inc. joined
with William E. Simon and Sons in creating Earlychildhood.com LLC (the
"Company"), I wanted to make sure that certain employees could obtain equity
interests in the new company in recognition of their exceptional performance and
as an incentive for them to continue to contribute to the Company's growth and
progress. The option to purchase those equity interests has now been set forth
in detail in the Company's 2000 Management Equity Incentive Option Plan (the
"Plan") and the Company's Operating Agreement (the "Operating Agreement"). I am
happy to inform you that you are entitled to participate in that Plan as
described in the enclosed Management Incentive Interest Option Agreement (the
"Agreement").

     As a California limited liability company, Earlychildhood.com is owned by
its "members." (This different than a corporation, which is owned by its
"shareholders.") Each member of the Company owns a percentage of the total
interests owned by all members of the Company. (This is also different than a
corporation, where ownership is through "shares" rather than through percentage
interests.) Under the Plan, you will be granted an option to purchase a 0.1%
interest in the Company. Your option is subject to a three-year vesting
schedule, after which time you will be fully vested and able to purchase the
entire 0.1% interest.

     If you exercise your option, your interest will be subject to a right of
repurchase by the Company in one of two ways. First, if you are terminated for
"cause" (as defined by the Plan) or if you voluntarily resign, the Company can
repurchase your interest at the lesser of the price you paid to exercise your
option (the "exercise price") or the fair market value of your interest. In that
scenario, the Company's right to repurchase at the exercise price decreases over
five years from the date of this letter (the date you were issued the original
option under the Plan). Secondly, if your employment is terminated for other
than "cause" or voluntary resignation, then the Company can repurchase your
interest only at the fair market value of your interest. In that case, the
Company's repurchase right does not decrease or expire.

     Earlychildhood.com has four classes of members, Class A through Class D,
each of which holds interests in accordance with their relative investment in
the Company. Pursuant to the Plan, you will be granted an option to purchase an
equity interest as a Class C member of the Company.

<PAGE>

     If you exercise your opinion to purchase an equity interest in the Company,
the "value" of that equity interest will be based on a complicated formula
contained in the Company's Operating Agreement.  Under that formula, the Class
A and Class B members (including William E. Simon & Sons, QTL Corporation and
Richard and Ronald Phelan), each of which made significant financial investments
in the Company, are given priority in the distributions from the Company.  As a
Class C member, your interest will nevertheless also be tied to the Company's
financial health.

     Because Earlychildhood.com anticipates strong growth and reinvestment of
its earnings, it is unlikely that your membership interest will result in
distributions to you during the COmpany's initial years of operation.  Given
that likelihood, the Company has set the price of your option at $42.50 per .01%
interest.  As the Company grows and becomes more profitable, however, I hope
that if you exercise your option, the value of your membership interest will be
significantly higher than your option exercise price.

     Please note that Earlychildhood.com is governed exclusively by its
Management Committee.  Therefore, neither your option, nor your future equity
interest, includes any voting rights or right to participate in the overall
management of the Company.

     This letter is only a brief summary; your rights are governed by the Plan,
the Agreement, and the Operating Agreement.  Therefore, please take the time to
review the enclosed Plan and Agreement, as well as the attachments.  Also, there
are very important tax consequences associated with any decision you may make in
the future to exercise your option under the Plan.  Therefore, you should
contact a contact a tax professional prior to making a decision to exercise your
option.

     If you choose to participate in the Management Equity Incentive Option
Plan, please date and sign the Agreement and return it to Jeffrey Grace, the
Company's Vice President - Finance.  If you have any questions regarding the
Plan, or your option under the Plan, it would be helpful if you would put those
questions in writing and submit them to Jeffrey Grace, who will attempt to
answer the questions as soon as possible thereafter.

     I am very happy that you will have the opportunity to become a part owner
of Earlychildhood.com LLC, and to benefit from its anticipated growth.

Sincerely,

/s/ Ron Elliott
Ron Elliott
President

<PAGE>

                            EARLYCHILDHOOD.COM LLC

                MANAGEMENT INCENTIVE INTEREST OPTION AGREEMENT
                ----------------------------------------------

     THIS MANAGEMENT INCENTIVE INTEREST OPTION AGREEMENT (this "Agreement") is
made and entered into as of September 1, 2000 (the "Effective Date") by and
between EarlyChildhood.com LLC, a California limited liability company (the
"Company"), and ______________________ ("Optionee").  Capitalized terms used in
this Agreement but not otherwise defined herein shall have their respective
meanings set forth in the 2000 Management Equity Incentive Option Plan of
EarlyChildhood.com LLC (the "Plan") and the Company's Amended and Restated
Operating Agreement dated as of May 5, 1999, as amended from time to time (the
"Operating Agreement").

     THE PARTIES HERETO AGREE AS FOLLOWS:

     1.  Grant of Option.
         ---------------

    Pursuant to the Plan, the Company hereby grants to Optionee, an Option to
purchase Class C Interests in the Company representing a _____ Percentage
Interest, subject to dilution, (together with any successor securities to the
Interest, the "Interests") of the Company as described below in consideration of
the Optionee's agreement to provide services to the Company on the terms and
conditions set forth herein, in the Plan and in the Operating Agreement;
provided, however, that the provisions of the Plan shall prevail over any
inconsistent provisions of this Agreement, and, only to the extent specifically
provided in the Plan, over any inconsistent provisions of the Operating
Agreement:

     Grant Date:                        September 1, 2000

     Exercise Price:                    $42.50 per .01% interest

     Expiration Date:                   The tenth anniversary of the Grant Date.

     2.  Exercise of Option.  This Option is exercisable as follows:
         ----------------------------------------------------------

         (a)   Right to Exercise; Vesting.
               --------------------------

               (i)    Optionee's entitlement to the Option is subject to the
vesting requirements set forth herein. The Option shall vest 1/3 on each of the
three (3) successive anniversaries of the Grant Date, resulting in the full
vesting of the Right on the third (3rd) anniversary of the Grant Date; provided,
however, that vesting shall terminate upon the effective date of a Termination
of Employment or Termination of Consultancy. The portion of the Right that has
vested as of a given date of determination shall be known as the "Vested
Portion" and the portion that has not vested as of such date shall be known as
the "Unvested Portion."
<PAGE>

               (ii)   In the event of Optionee's death, disability or
Termination of Employment or Termination of Consultancy, the exercisability of
the Option after any such event will be governed by Sections 7, 8 and 9 below.

               (iii)  In no event may this Option be exercised after the
Expiration Date of this Option as set forth above.

           (b)  Method of Exercise.  This Option shall be exercisable by
                ------------------
written Notice (in the form attached as Exhibit A).  The Notice must state
                                        ---------
the amount of Percentage Interests, subject to dilution, represented by the
Interests for which the Option is being exercised, and such other
representations and agreements that the Committee may require, in its reasonable
discretion. The Notice must be signed by the Optionee and shall be delivered in
person or by certified mail to the Secretary of the Company. The Notice must be
accompanied by payment of the Exercise Price, including payment of any
applicable withholding tax and an executed joinder agreement (in a form
acceptable to the Committee), or other evidence acceptable to the Committee of
execution of the Operating Agreement (including the execution of counterpart
signature pages thereto). This Option shall be deemed to be exercised upon
receipt by the Company of such written Notice accompanied by such joinder
agreement or other evidence of execution of the Operating Agreement, the
Exercise Price and payment of any applicable withholding tax. For income tax
purposes, the Interests shall be considered transferred to the Optionee on the
date on which the Option is exercised with respect to such Interests.

     3.  Optionee's Representations.  If the Interests purchasable pursuant to
         --------------------------
the exercise of this Option have not been registered under the Securities Act,
-----------------------------------------------------------------------------
at the time this Option is exercised, Optionee shall, if required by the
-----------------------------------------------------------------------------
Committee, concurrently with the exercise of all or any portion of this Option,
-----------------------------------------------------------------------------
deliver to the Company his or her Investment Representation Statement in the
-----------------------------------------------------------------------------
form attached hereto as Exhibit B.
---------------------------------

     4.  Market Standoff.  Optionee hereby agrees that if so requested by the
         -----------------------------------------------------------------------
Company or any representative of the underwriters (the "Managing Underwriter")
-----------------------------------------------------------------------------
 in connection with any registration of the offering of any securities of the
-----------------------------------------------------------------------------
Company or any successor thereto under the Securities Act, Optionee and the
-----------------------------------------------------------------------------
Company (or such successor) shall execute a Market Standoff Agreement
-----------------------------------------------------------------------------
substantially in the form attached hereto as Exhibit C, pursuant to which
-----------------------------------------------------------------------------
Optionee shall agree that if so requested by the Company (or such successor) or
-------------------------------------------------------------------------------
any representative of the underwriters in connection with any registration of
-----------------------------------------------------------------------------
the offering of the securities of the Company (or such successor), Optionee
-----------------------------------------------------------------------------
shall not sell or dispose of the Interests for a period of 180 days following
-----------------------------------------------------------------------------
the effective date of a Registration Statement filed under the Securities Act.
-----------------------------------------------------------------------------

     5.  Method of Payment.  Payment of the Exercise Price shall be by any of
         --------------------------------------------------------------------
the following, or a combination thereof, at the election of the Optionee:
------------------------------------------------------------------------

          (a)  cash;

          (b)  check;

                                       2
<PAGE>

          (c) with the consent of the Committee and to the extent permitted by
law, a full recourse promissory note bearing interest (at no less than such rate
as shall then preclude the imputation of interest under the Code), payable upon
such terms and in such form as may be prescribed by the Committee;

          (d)  with the consent of the Committee, surrender of other Interests
of the Company which (A) in the case of Interests acquired from the Company,
have been owned by the Optionee for more than six (6) months on the date of
surrender, and (B) have a Fair Market Value on the date of surrender equal to
the Exercise Price of the Interests as to which the Option is being exercised;

          (e)  with the consent of the Committee, a written agreement to
withhold from issuance a portion of the Interests otherwise issuable upon the
exercise of the Option having a Fair Market Value on the date of exercise equal
to the aggregate Exercise Price of the Option or exercised portion thereof; or

          (f) with the consent of the Committee, property of any kind which
constitutes good and valuable consideration.

     6.  Restrictions on Exercise.  This Option may not be exercised until the
         ------------------------
Plan has been approved by the Members of the Company. If the issuance of
------------------------------------------------------------------------
Interests upon such exercise or if the method of payment for such Interests
---------------------------------------------------------------------------
would constitute a violation of any applicable federal or state securities or
-----------------------------------------------------------------------------
other law or regulation, then the Option may also not be exercised. The
-----------------------------------------------------------------------
Committee may require Optionee to make any representation and warranty to the
-----------------------------------------------------------------------------
Company as may be required by any applicable law or regulation before allowing
------------------------------------------------------------------------------
the Option to be exercised.
--------------------------

     7.  Termination of Relationship.
         ---------------------------

         (a)  If Optionee ceases to be a service provider to the Company on
account of a Termination of Employment for Cause or a Termination of Consultancy
for Cause, the Option granted hereunder shall cease to be exercisable and shall
terminate on the date upon which such Termination of Employment or Termination
of Consultancy is effective.

          (b)  If Optionee ceases to be a service provider to the Company on
account of a Termination of Employment or a Termination of Consultancy (other
than for Cause or death or total and permanent disability as defined in Code
Section 22(e)(3)), the Optionee may exercise the Option to the extent the Option
was vested at the date on which Optionee ceases to be a service provider, but
only within thirty (30) days from such date (and in no event later than the
Expiration Date of this Option as set forth in Section 1 of this Agreement). If
Optionee does not exercise such Option within such thirty (30) day period, the
Option shall terminate.

          8.  Disability of Optionee.  If Optionee ceases to be a service
              ------------------------------------------------------------------
provider to the Company as a result of his or her total and permanent disability
--------------------------------------------------------------------------------
as defined in Code Section 22(e)(3), Optionee may exercise the Option to the
----------------------------------------------------------------------------
extent the Option was vested at the date on which Optionee ceases to be a
-------------------------------------------------------------------------
service provider, but only within twelve (12) months from such
--------------------------------------------------------------

                                       3
<PAGE>

date (and in no event later than the Expiration Date of this Option as set forth
--------------------------------------------------------------------------------
in Section 1 of this Agreement). If Optionee does not exercise such Option
--------------------------------------------------------------------------
within the time specified herein, the Option shall terminate.
------------------------------------------------------------

     9.  Death of Optionee.  If Optionee ceases to be a service provider to the
         ----------------------------------------------------------------------
Company as a result of the death of Optionee, the vested portion of the Option
------------------------------------------------------------------------------
may be exercised at any time within twelve (12) months following the date of
----------------------------------------------------------------------------
death (and in no event later than the Expiration Date of this Option as set
---------------------------------------------------------------------------
forth in Section 1 of this Agreement) by Optionee's estate or by a person who
-----------------------------------------------------------------------------
acquires the right to exercise the Option by bequest or inheritance.  If the
----------------------------------------------------------------------------
Option is not exercised within the time specified herein, the Option shall
--------------------------------------------------------------------------
terminate.
---------

     10.  Non-Transferability of Option.  This Option may not be transferred
          ------------------------------------------------------------------
in any manner except to Optionee's immediate family member(s) by will or by the
-------------------------------------------------------------------------------
laws of descent or distribution. It may be exercised during the lifetime of
---------------------------------------------------------------------------
Optionee only by Optionee. The terms of this Option shall be binding upon the
-----------------------------------------------------------------------------
executors, administrators, heirs, successors and assigns of the Optionee.
------------------------------------------------------------------------

     11.  Repurchase of Interests.  The provisions of Section 9.6 of the
          --------------------------------------------------------------
Operating Agreement shall be applicable to all Interests acquired pursuant to
-----------------------------------------------------------------------------
the exercise of the Option, except, if Optionee is an Employee (not a
---------------------------------------------------------------------
Consultant), to the limited extent provided in the following two sentences.
--------------------------------------------------------------------------
Notwithstanding the provisions of Section 9.6(b) of the Operating Agreement to
------------------------------------------------------------------------------
the contrary (which for the purpose of the Interests acquired by an Employee
----------------------------------------------------------------------------
pursuant to the exercise of the Option are superseded hereby), if Optionee's
----------------------------------------------------------------------------
Termination of Employment is for Cause or occurs as a result of his voluntary
-----------------------------------------------------------------------------
resignation or withdrawal, the right of the Company to repurchase such Interest
-------------------------------------------------------------------------------
may be exercised for a repurchase price equal to the lesser of (i) the Original
-------------------------------------------------------------------------------
Cost or (ii) the Fair Market Value of such Interest; provided, however, that the
--------------------------------------------------------------------------------
Company's right to repurchase such Interest at such repurchase price shall lapse
--------------------------------------------------------------------------------
at a rate of twenty percent (20%) for each year, measured from the Grant Date,
-----------------------------------------------------------------------------
that Optionee served as an Employee and, with respect to the percentage of such
-------------------------------------------------------------------------------
Interest with respect to which such lapse has occurred, the Company's right to
------------------------------------------------------------------------------
repurchase such Interest may only be exercised for a repurchase price equal to
------------------------------------------------------------------------------
the Fair Market Value of such Interest; provided, further, that for the
-----------------------------------------------------------------------
percentage of any such Interest with respect to which such lapse has not
------------------------------------------------------------------------
occurred, to the extent such Interest is purchased at the Original Cost, then,
-----------------------------------------------------------------------------
subject to the remaining provisions of Section 9.6 of the Operating Agreement,
-----------------------------------------------------------------------------
such purchase price shall be paid on the Repurchase Date. If Optionee is an
---------------------------------------------------------------------------
Employee (not a Consultant), then notwithstanding the provisions of Section
---------------------------------------------------------------------------
9.6(b) of the Operating Agreement to the contrary (which for the purpose of the
-------------------------------------------------------------------------------
Interests acquired pursuant to the exercise of the Option are superseded
------------------------------------------------------------------------
hereby), the Company's repurchase right with respect to Interests acquired
--------------------------------------------------------------------------
pursuant to the exercise of Options granted under this Plan: (a) may not be
---------------------------------------------------------------------------
exercised later than 90 days after the date of Termination of Employment, (b)
-----------------------------------------------------------------------------
may only be exercised for cash or cancellation of purchase money indebtedness,
-----------------------------------------------------------------------------
and (c) shall terminate upon the consummation of the Company's initial Public
-----------------------------------------------------------------------------
Offering.
--------

     12.  Term of Option.  Notwithstanding any other provision of this
          ------------------------------------------------------------
Agreement to the contrary, this Option shall terminate and cease to be
----------------------------------------------------------------------
exercisable effective on the Expiration Date set out in Section 1 of this
-------------------------------------------------------------------------
Agreement.
---------

                                       4
<PAGE>

     13.  Binding Effect.  Subject to the limitations set forth herein, this
          ------------------------------------------------------------------
Agreement shall be binding upon, and inure to the benefit of, the executors,
---------------------------------------------------------------------------
administrators, heirs, legal representatives, successors and assigns of the
---------------------------------------------------------------------------
parties hereto.
--------------

                            (Signature Page Follows)

                                       5
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first written above.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which shall
constitute one document.

                              EARLYCHILDHOOD.COM LLC,
                              a California limited liability company

                              By:
                                  ------------------------------------
                                  Name:  Ronald Elliott
                                  Title: President, CEO and Secretary

     OPTIONEE ACKNOWLEDGES AND AGREES THAT THE OPTION HEREIN GRANTED CONTINUES
     TO BE EXERCISABLE ONLY FOR PERIODS DETERMINED WITH REFERENCE TO THE PERIOD
     OF CONTINUED CONSULTANCY OR EMPLOYMENT AT THE WILL OF THE COMPANY (NOT
     THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING
     INTERESTS HEREUNDER).  OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT
     NOTHING IN THIS AGREEMENT, NOR IN THE COMPANY'S 2000 MANAGEMENT EQUITY
     INCENTIVE OPTION PLAN WHICH IS INCORPORATED HEREIN BY REFERENCE, SHALL
     CONFER UPON OPTIONEE ANY RIGHT WITH RESPECT TO CONTINUATION OF EMPLOYMENT
     OR CONSULTANCY BY THE COMPANY, NOR SHALL IT INTERFERE IN ANY WAY WITH
     OPTIONEE'S RIGHT OR THE COMPANY'S RIGHT TO TERMINATE OPTIONEE'S EMPLOYMENT
     OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT CAUSE OR NOTICE.

     Optionee acknowledges receipt of a copy of the Plan and the Operating
Agreement and represents that he is familiar with the terms and provisions
thereof.  Optionee hereby accepts this Option subject to all of the terms and
provisions hereof.  Optionee has reviewed the Plan, the Operating Agreement and
this Option in their entirety, has had an opportunity to obtain the advice of
counsel prior to executing this Option and fully understands all provisions of
the Option.  Optionee hereby agrees to accept as binding, conclusive and final
all decisions or

                                      S-1
<PAGE>

interpretations of the Committee upon any questions arising under the Plan or
this Option. Optionee further agrees to notify the Committee upon any change in
the residence address indicated below.

                              OPTIONEE:

                              ----------------------------------
                              (Sign Name)

                              ----------------------------------
                              (Print Name)

                               Residence Address:

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

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

                                       2
<PAGE>

                                   EXHIBIT A
                                   ---------

                             EARLYCHILDHOOD.COM LLC

                  2000 MANAGEMENT EQUITY INCENTIVE OPTION PLAN

                                EXERCISE NOTICE

EarlyChildhood.com LLC

Attention:  President

     1.  Exercise of Option.  Effective as of today, ___________, 2000, by
         ------------------
executing this notice (the "Notice") the undersigned (the "Optionee") hereby
elects to exercise such Optionee's option to purchase Class C Interests in
EarlyChildhood.com LLC (the "Company") representing a _________ Percentage
Interest (the "Interests") in the Company under and pursuant to the 2000
Management Equity Incentive Option Plan of EarlyChildhood.com LLC (the "Plan")
and the Management Incentive Option Interest Agreement dated September 1, 2000,
(the "Agreement").

     2.  Representations of Optionee.  Optionee acknowledges that Optionee has
         ---------------------------
received, read and understood the Plan, the Operating Agreement and the Option
Agreement.  Optionee agrees to abide by and be bound by their terms and
conditions.

     3.  Rights and Obligations as Member.  Upon exercise of the option in
         --------------------------------
compliance and accordance with the provisions of Section 5.3(c) through (e) of
the Plan, and compliance with Section 5.4 thereof, the Optionee shall become a
Class C Member and shall have all the rights of a Class C Member with respect to
said Interests as provided in the Operating Agreement, subject to the
restrictions in the Agreement.  Optionee shall enjoy rights as a Class C Member
and shall be subject to all of the limitations, restrictions and obligations
contained in the Operating Agreement as a Class C Member, until such time as
Optionee disposes of the Interests or the Company and/or its assignee(s)
exercises the Right of Repurchase provided under the Operating Agreement, as
modified by the Plan.  Upon such exercise, Optionee shall have no further rights
as a holder of the Interests so purchased except the right to receive payment
for the Interests so purchased in accordance with the provisions of this
Agreement and the Operating Agreement.

     4.  Company's Right of Repurchase.
         -----------------------------

          The Interests shall be subject to a right of repurchase in favor of
the Company (the "Right of Repurchase") in the event of the Termination of
Employment or Termination of Consultancy of the Optionee as provided in Section
9.6 of the Operating Agreement at the repurchase price and subject to such other
terms and conditions as specified therein, subject to Section 6.1 of the Plan.

                                      A-1
<PAGE>

     5.  Restrictions on Transfer of Interests.
         -------------------------------------

         The Interests acquired pursuant to the Option granted to Optionee under
this Agreement are subject to the terms of the Plan and the terms of the
Operating Agreement. As provided in the Operating Agreement, the Interests may
be transferred in certain limited and restricted circumstances. Any transferee
of Interests shall take such Interest subject to the terms of the Plan, this
Agreement, and the Operating Agreement, including, without limitation, the
transfer and repurchase restrictions set forth in Article 9 of the Operating
Agreement, subject to Section 6.1 of the Plan. Any such transferee must, upon
the request of the Company, execute an agreement agreeing to be bound by the
Operating Agreement. Notwithstanding any provisions to the contrary in the
Operating Agreement, Optionee may not dispose of or transfer any Option or
portion thereof under any circumstances other than (a) pursuant to a will or the
laws of descent and distribution or (b) pursuant to a DRO, and any attempted
transfer shall be null and void.

     6.  Interest Certificate Restrictive Legends.
         ----------------------------------------

         Certificates evidencing Interests, to the extent such certificates are
required to (or may) be issued, may bear such restrictive legends as the Company
and/or the Company's counsel may deem necessary or advisable under applicable
law or pursuant to this Agreement, including, without limitation, the following
legends:

     "THE OFFERING AND SALE OF THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
     REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
     ACT"). ANY TRANSFER OF SUCH SECURITIES WILL BE INVALID UNLESS A
     REGISTRATION STATEMENT UNDER THE SECURITIES ACT IS IN EFFECT AS TO SUCH
     TRANSFER OR IN THE OPINION OF COUNSEL FOR THE COMPANY SUCH REGISTRATION IS
     UNNECESSARY IN ORDER FOR SUCH TRANSFER TO COMPLY WITH THE SECURITIES ACT."

     "THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO A RIGHT OF REPURCHASE
     (THE "RIGHT OF REPURCHASE") BY THE COMPANY AND RESTRICTIONS ON TRANSFER
     ("TRANSFER RESTRICTIONS") PURSUANT TO THE AMENDED AND RESTATED OPERATING
     AGREEMENT OF EARLYCHILDHOOD.COM LLC, DATED MAY 5, 1999, AND SUCH SECURITIES
     MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO THE PROVISIONS
     OF SUCH AGREEMENT."

     7.  Tax Advice.  The Company has made no warranties or representations to
         ----------
Optionee with respect to the income tax consequences of the transactions
contemplated by the grant of options or by this Agreement, and Optionee is in no
manner relying on the Company or its representatives for an assessment of such
tax consequences.

     8.  Remedies.
         --------

         Optionee shall be liable to the Company for all costs and damages,
including incidental and consequential damages, resulting from a disposition of
Interests which is not in

                                      A-2
<PAGE>

conformity with the provisions of this Agreement. Without limiting the
generality of the foregoing, Optionee agrees that the Company shall be entitled
to obtain specific performance of the obligations of Optionee under this
Agreement and immediate injunctive relief in the event any action or proceeding
is brought in equity to enforce the same. Optionee will not urge as a defense
that there is an adequate remedy at law.

     9.   Governing Law.
          -------------

         This Agreement shall be governed by and construed in accordance with
the laws of the State of California applicable to contracts entered into and
wholly to be performed within the State of California by California residents,
without regard to any otherwise governing principles of conflicts of law.

     10.  Survival of Representations and Warranties.
          ------------------------------------------

         The representations, warranties and covenants contained in Exhibit B
shall survive the later of the date of execution and delivery of this Agreement
or the issuance of the Interests.

     11.  Notices.
          -------

          All notices, requests, demands and other communications which are
required or may be given under this Agreement shall be in writing and shall be
deemed to have been duly given when received if personally delivered; when
transmitted if transmitted by telecopy, electronic or digital transmission
method and an appropriate confirmation is received; the day after it is sent, if
sent for next day delivery to a domestic address by recognized overnight
delivery service (e.g. Federal Express); and upon receipt, if sent by certified
or registered mail, return receipt requested. Unless and until Optionee is
notified in writing to the contrary, all notices, communications and documents
directed to the Company and related to the Agreement, if not delivered by hand,
shall be mailed, addressed as follows:

          EarlyChildhood.com LLC
          Two Lower Ragsdale Drive, Suite 200
          Monterey, California  93940
          Attention:  Management Committee
          Telephone:  (831) 353-2000
          Facsimile:   (831) 333-2580

          Unless and until the Company is notified in writing to the contrary,
all notices, communications and documents intended for Optionee and related to
this Agreement, if not delivered by hand, shall be mailed to Optionee's last
known address as shown on the Company's books.

                                      A-3
<PAGE>

     12.  Counterparts.
          ------------

          This Agreement may be executed in any number of counterparts, any of
which may be executed and transmitted by facsimile, and each of which shall be
deemed to be an original, but all of which together shall be deemed to be one
and the same instrument.

     13.  Successors and Assigns.
          ----------------------

          Subject to the limitations set forth in this Agreement, this Agreement
shall be binding upon, and inure to the benefit of, the executors,
administrators, heirs, legal representatives, successors and assigns of the
parties hereto, including, without limitation, any business entity that succeeds
to the business of the Company.

     14.  Entire Agreement; Amendments and Waivers.
          ----------------------------------------

          This Agreement, together with all exhibits, annexes and schedules
hereto, and the Plan and the Operating Agreement, constitute the entire
agreement among the parties pertaining to the subject matter hereof and
supersedes all prior agreements, understandings, negotiations and discussions,
whether oral or written, of the parties. This Agreement may not be amended
except in an instrument in writing signed on behalf of each of the parties
hereto. No amendment, supplement, modification or waiver of this Agreement shall
be binding unless executed in writing by the party to be bound thereby. No
waiver of any of the provisions of this Agreement shall be deemed or shall
constitute a waiver of any other provision hereof (whether or not similar), nor
shall such waiver constitute a continuing waiver unless otherwise expressly
provided.

     15.  Invalidity.
          ----------

          In the event that any one or more of the provisions contained in this
Agreement or in any other instrument referred to herein, shall, for any reason,
be held to be invalid, illegal or unenforceable in any respect, then to the
maximum extent permitted by law, such invalidity, illegality or unenforceability
shall not affect any other provision of this Agreement or any other such
instrument.

     16.  Titles.
          ------

          The titles, captions or headings of the Articles and Sections herein
are inserted for convenience of reference only and are not intended to be a part
of or to affect the meaning or interpretation of this Agreement.

                            (Signature Page Follows)

                                      A-4
<PAGE>

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

                              EARLYCHILDHOOD.COM LLC,
                              a California limited liability company

                              By:
                                 ________________________________
                                 Name:
                                 Title:

     Optionee hereby accepts and agrees to be bound by all of the terms and
conditions of this Agreement.

                              Optionee:

                              ___________________________________
                              (Sign Name)

                              ___________________________________
                              (Print Name)

     Optionee's spouse indicates by the execution of this Agreement his or her
consent to be bound by the terms herein as to his or her interests, whether as
community property or otherwise, if any, in the Interests.

                              Optionee's Spouse:

                              ___________________________________
                              (Sign Name)

                              ___________________________________
                              (Print Name)

                                      A-5
<PAGE>

                                   EXHIBIT B
                                   ---------

                      INVESTMENT REPRESENTATION STATEMENT

OPTIONEE    :  _____________________

COMPANY     :  EARLYCHILDHOOD.COM LLC

SECURITY    :  CLASS C INTERESTS

AMOUNT      :  _____________________

DATE        :  SEPTEMBER 1, 2000

In connection with the purchase of the above-listed Securities, the undersigned
Optionee represents to the Company the following:

          (a)  Optionee is presently an Employee of or Consultant to the Company
and in such capacity has become personally familiar with the business of the
Company. Optionee has had the opportunity to ask questions of, and to receive
answers from, the Company with respect to the terms and conditions of the
transactions contemplated hereby and with respect to the business, affairs,
financial conditions, and results of operations of the Company.

          (b)  Optionee is aware of the Company's business affairs and financial
condition and has acquired sufficient information about the Company to reach an
informed and knowledgeable decision to acquire the Securities. Optionee is
acquiring these Securities for investment for Optionee's own account only and
not with a view to, or for resale in connection with, any "distribution" thereof
within the meaning of the Securities Act of 1933, as amended (the "Securities
Act").

          (c)  Optionee acknowledges and understands that the Securities
constitute "restricted securities" under the Securities Act and have not been
registered under the Securities Act in reliance upon a specific exemption
therefrom, which exemption depends upon, among other things, the bona fide
nature of Optionee's investment intent as expressed herein. In this connection,
Optionee understands that, in the view of the Securities and Exchange
Commission, the statutory basis for such exemption may be unavailable if
Optionee's representation was predicated solely upon a present intention to hold
these Securities for the minimum capital gains period specified under tax
statutes, for a deferred sale, for or until an increase or decrease in the
market price of the Securities, or for a period of one year or any other fixed
period in the future. Optionee further understands that the Securities must be
held indefinitely unless they are subsequently registered under the Securities

                                      B-1
<PAGE>

Act or an exemption from such registration is available. Optionee further
acknowledges and understands that the Company is under no obligation to register
the Securities. Optionee understands that the certificate evidencing the
Securities will be imprinted with a legend which prohibits the transfer of the
Securities unless they are registered or such registration is not required in
the opinion of counsel satisfactory to the Company and any other legend required
under applicable state securities laws.

          (d)  Optionee has been made aware of the provisions of Rule 701 and
Rule 144, each promulgated under the Securities Act, which, in substance, permit
only limited public resale of "restricted securities" acquired directly or
indirectly from the issuer thereof in a non-public offering, and impose certain
conditions on such resale.

          Rule 701 provides that if the issuer (in this instance, the Company)
qualifies under Rule 701 at the time of the grant of the Option to the Optionee,
the exercise will be exempt from registration under the Securities Act. In the
event the Company becomes subject to the reporting requirements of Section 13 or
15(d) of the Securities Exchange Act of 1934, ninety (90) days thereafter (or
such longer period as any market stand-off agreement may require) the Securities
exempt under Rule 701 may be resold, subject to the satisfaction of certain of
the conditions specified by Rule 144, including that the resale must be made
through a broker in an unsolicited "broker's transaction" or in transactions
directly with a "market maker" (as defined under the Securities Exchange Act of
1934). In the case of an affiliate of the Company, resales are also subject to
the following conditions: (1) the availability of certain public information
about the Company, (2) the amount of Securities being sold during any three (3)
month period not exceeding the limitations specified in Rule 144(e), and (3) the
timely filing of a Form 144, if applicable. Under Rule 144, members of the
Company's Management Committee and officers of the Company are among the persons
deemed to be affiliates.

          If the Company does not qualify under Rule 701 at the time of grant of
the Option, then the Securities may be resold in certain limited circumstances
subject to the provisions of Rule 144, which requires the resale to occur not
less than one year after the date the Securities were sold by the Company to
Optionee and to be made through a broker in an unsolicited "broker's
transaction" or in transactions directly with a "market maker."  In addition, in
the case of Securities held by an affiliate (regardless of the holding period)
or by a non-affiliate who has held the Securities less than two (2) years, the
conditions set forth in sections (1), (2) and (3) of the paragraph immediately
above must be satisfied.

          (e)  Optionee further understands that in the event all of the
applicable requirements of Rule 701 or 144 are not satisfied, registration under
the Securities Act, compliance with Regulation A, or some other registration
exemption will be required in order for Optionee to resell the Securities; and
that, notwithstanding the fact that Rules 144 and 701 are not exclusive, the
staff of the Securities and Exchange Commission has expressed its opinion that
persons proposing to sell private placement securities other than in a
registered offering and otherwise than pursuant to Rules 144 or 701 will have a
substantial burden of proof in establishing that an exemption from registration
is available for such offers or sales, and that such persons and their
respective brokers

                                      B-2
<PAGE>

who participate in such transactions do so at their own risk. Optionee
understands that no assurances can be given that any such other registration
exemption will be available in such event.

                              Signature of Optionee:

                              ___________________________________

Date: _______________________, 20__

                                      B-3
<PAGE>

                                   EXHIBIT C
                                   ---------

                           MARKET STANDOFF AGREEMENT

     THIS MARKET STANDOFF AGREEMENT (the "Agreement") is made and entered into
as of September 1, 2000, between EarlyChildhood.com LLC, a California limited
liability company and any successor to the business of the Company (in either
case, the "Company"), and Lisa Derian ("Optionee").

                                R E C I T A L S
                                - - - - - - - -

     A.  As of the date hereof, Optionee is a Class C Member of the Company and
owns Class C Interests representing a 0.1 Percentage Interest (the "Interests")
of the Company that were granted pursuant to the 2000 Management Equity
Incentive Option Plan of EarlyChildhood.com LLC.  The term "Interests" refers to
such Interests presently held by Optionee and to all securities received in
addition thereto or in replacement thereof, pursuant to or in consequence of any
stock dividend, stock split, recapitalization, merger, reorganization or other
similar event.

     B.  In order to provide assurance to persons who may purchase securities of
the Company in the future and thereby to assist in the equity financing of the
Company, Optionee is willing to enter into this Agreement for the benefit of the
Company and any person or entity who holds securities of the Company from time
to time.

     THE PARTIES AGREE AS FOLLOWS:

     1.  Market Standoff.  Optionee hereby agrees that if so requested by the
         ---------------
Company or any representative of the underwriters in connection with any
registration of the offering of any securities of the Company under the
Securities Act of 1933, as amended (the "Act"), Optionee shall not directly or
indirectly, sell, offer to sell, grant any option for the sale of, or otherwise
dispose of or transfer, any Interests or other securities of the Company during
the 180-day period following the effective date of a registration statement of
the Company filed under the Act or such shorter period of time as the
underwriters may require; provided, however, that such restriction shall apply
only to the first two registration statements of the Company to become effective
under the Act which include securities to be sold on behalf of the Company to
the public in an underwritten public offering under the Act.  The Company may
impose stop-transfer instructions with respect to the securities subject to the
foregoing restrictions until the end of such 180-day period or such shorter
period.

     2.  Certificate Restrictive Legend.  Optionee agrees that the
         ------------------------------
certificate(s) representing the Interests, if any, shall bear the following
legend:

     "The securities represented hereby are subject to restrictions on transfer
for a period of 180 days following the effective date of a registration
statement under the Securities Act of 1933, as amended, for an offering of the
Company's securities as more fully provided in a Market Standoff Agreement
between the Company and the original holder of such securities."

                                      C-1
<PAGE>

     3.  Binding Effect.  Subject to the limitations set forth herein, this
         --------------
Agreement shall be binding upon, and inure to the benefit of, the executors,
administrators, heirs, legal representatives, successors and assigns of the
parties hereto, including, without limitation, any business entity that succeeds
to the business of the Company.

     4.  Damages.  Optionee shall be liable to the Company for all costs and
         -------
damages, including, without limitation, incidental and consequential damages,
resulting from a disposition of Interests which is not in conformity with the
provisions of this Agreement.

     5.  Governing Law.  This Agreement shall be governed by and construed in
         -------------
accordance with the laws of the State of California applicable to contracts
entered into and wholly to be performed within the State of California by
California residents.  The parties agree that the exclusive jurisdiction and
venue of any action with respect to this Agreement shall be in the Superior
Court of California, County of Monterey, and each of the parties hereby submits
itself to the exclusive jurisdiction and venue of such courts for the purpose of
such action.  The parties agree that service of process in any such action may
be effected by delivery of the summons to the parties in the manner provided for
delivery of notices set forth in Section 6.

     6.  Notices.  All notices and other communications under this Agreement
         -------
shall be in writing.  Unless and until Optionee is notified in writing to the
contrary, all notices, communications and documents directed to the Company and
related to the Agreement, if not delivered by hand, shall be mailed, addressed
as follows:

          EarlyChildhood.com
          Two Lower Ragsdale Drive, Suite 200
          Monterey, California  93940
          Attention:  Management Committee
          Telephone:  831-333-2000
          Facsimile:   831-333-2580

     Unless and until the Company is notified in writing to the contrary, all
notices, communications and documents intended for Optionee and related to this
Agreement, if not delivered by hand, shall be mailed to Optionee's last known
address as shown on the Company's books.  Notices and communications shall be
mailed by registered or certified mail, return receipt requested, postage
prepaid.  All mailings and deliveries related to this Agreement shall be deemed
received only when actually received.

     7.  Counterparts.  This Agreement may be executed in any number of
         ------------
counterparts, each of which shall be deemed to be an original and all of which
together shall be deemed to be one and the same instrument.

                            (Signature Page Follows)

                                      C-2
<PAGE>

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

                              EarlyChildhood.com LLC,
                              a California limited liability company

                              By:
                                  ---------------------------
                                  Name:  Ronald Elliott
                                  Title: President, Chief Executive Officer and
                                  Secretary

     Optionee hereby accepts and agrees to be bound by all of the terms and
conditions of this Agreement.

                              Optionee:

                              -------------------------------
                              (Sign Name)

                              -------------------------------
                              (Print Name)

     Optionee's spouse indicates by the execution of this Agreement his or her
consent to be bound by the terms herein as to his or her interests, whether as
community property or otherwise, if any, in the Interests.

                              Optionee's Spouse:

                              _______________________________
                              (Sign Name)

                              _______________________________
                              (Print Name)

                                      C-3<PAGE>
                                                                   Exhibit 10.21

                                LEASE AGREEMENT

                            Basic Lease Information

Lease Date:                  March 30, 2000

Lessor:                      PTF FOR OPERATING ENGINEERS, LLC, a Delaware
                             limited liability company

Lessor's Address:            340 El Camino Real South, Salinas, CA  93901

Lessee:                      EARLYCHILDHOOD.COM, LLC, a California limited
                             liability company

Lessee's Address:            2 Lower Ragsdale Drive, Suite 200
                             Monterey, California  93940

Premises:                    Approximately 122,227 square feet of space as
                             shown on Exhibit A to this Lease and commonly
                             known as Space 32

Premises Address:            340 El Camino Real South, Salinas, CA  93901

                             Building:  Spaces 31-34
                             Park or Property:  Firestone Business Park

Term:                        Seven (7) years

Commencement Date:           July 1, 2000

Termination Date:            June 30, 2007

Option To Extend Term:       One five (5) year option

Base Rent:                   Thirty-Six Thousand Six Hundred Sixty-Eight
                             Dollars ($36,668.00) (increased as set forth in
                             Paragraph 4)

Security Deposit:            Forty-Three Thousand Seven Hundred Eighty-Three
                             Dollars ($43,783.00)

Permitted Uses:              Warehouse and distribution with ancillary office
                             and light, non-diesel, water-based manufacturing

Insurance Amount:            Bodily injury limit of not less than $1 million
                             per occurrence. Property damage limit of not less
                             than $1 million per occurrence.

Parking Spaces:              Twenty-Five (25) undesignated parking spaces

Exhibits:                    Exhibit A - Premises
                             Exhibit B - Landlord's Work
                             Exhibit C - Rules and Regulations
                             Exhibit D - Estoppel Certificate
                             Exhibit E - First Offer Premises

Addenda:                     None
<PAGE>

                                LEASE AGREEMENT

DATE:     This Lease is made and entered into as of the Lease Date defined on
          Page 1.  The Basic Lease Information set forth on Page 1 and this
          Lease are and shall be construed as a single instrument.

1.  PREMISES:  Lessor hereby leases to Lessee upon the terms and conditions
    contained herein the Premises.  Lessee shall have the non-exclusive right
    to use common areas of the Park designated by Lessor from time to time for
    the use of all tenants of the Park ("Common Areas").

2.  TERM:
    ----
          (A) INITIAL TERM:  The term of this Lease shall commence on the
     Commencement Date set forth on Page 1 and shall end on the Termination Date
     set forth on Page 1.  If Lessor cannot deliver possession of the Premises
     on the Commencement Date, Lessor shall not be subject to any liability nor
     shall the validity of the Lease be affected; provided the Lease term and
     the obligation to pay Rent shall commence on the date possession is
     tendered and the Termination Date shall be extended by a period of time
     equal to the period computed from the Commencement Date to the date
     possession is tendered.  In the event that Lessor permits Lessee to occupy
     the Premises prior to the Commencement Date, such occupancy shall be
     subject to all the provisions of this Lease.

         (B) OPTION TO EXTEND TERM:  Lessee shall have the option ("Extension
     Option") to extend the Lease Term, as to not less then the entire Premises,
     for a period (the "Option Period") of five (5) years commencing upon the
     date the Lease Term would otherwise expire, upon the same terms and
     conditions previously applicable, except for the grant of the Extension
     Option, the Landlord's Work provisions set forth in Exhibit B (which shall
     no longer be executory) and Rent (which shall be determined as set forth
     below.

     The Extension Option may be validly exercised only by notice in writing
     ("Option Notice") received by Landlord not earlier than twelve (12) months,
     and not later than nine (9) months, prior to commencement of the Option
     Period; provided, however, in the event Lessee is in default of the Lease
     at any time from the date of the Option Notice through the date on which
     the Option Period commences, then at Lessor's election and upon written
     notice by Lessor to Lessee, Lessee's exercise of the Extension Option may
     be voided by Lessor and Lessee shall thereafter have no rights hereunder to
     extent the Term through the Option Period.  If Lessee does not exercise the
     Extension Option during the exercise period set forth above in strict
     accordance with the provisions hereof, the Extension Option shall forever
     terminate and be of no further force or effect.

     For purposes hereof, "Fair Market Rental" shall mean the rent payable by a
     comparable willing tenant to a willing landlord for like and comparable
     space, improved with tenant improvements of like and comparable quality to
     those then existing in the Premises and in the Building, and like and
     comparable buildings located in the Salinas area and for a term comparable
     to the Option Period; provided, however, that in determining Fair Market
     Rental, no reduction shall be made for the value of existing improvements
     and finishes provided by Lessor or Lessee.  Not later than six (6) months
     prior to commencement of the Option Period, Lessor shall notify Lessee of
     Fair Market Rental as determined in good faith by Lessor ("Lessor's FMR").
     For a period of thirty (30) days following Lessee's receipt of Lessor's
     notice identifying the Lessor's FMR, Lessor and Lessee hereby agree to
     negotiate in good faith whether Lessor's FMR is appropriate for the
     Premises for the Option Period, or whether some other rental is appropriate
     for the Premises for the Option Period.

     If, after the 30-day period described above, Lessor and Lessee have been
     unable to agree on the Fair Market Rental, then each party shall make a
     separate determination of the Fair Market Rental which shall be submitted
     to each other and to arbitration in accordance with the following items (i)
     through (vii):

     (i) Lessor and Lessee shall each appoint, within ten (10) days of the
     expiration of such 30-day period, one arbitrator who shall be profession be
     a current real estate broker for commercial office properties in the
     immediate vicinity of the Park, and who has been active in such field over
     the last five (5) years.  The determination of the arbitrators shall be
     limited solely to the issue of whether Lessor's or Lessee's submitted Fair
     Market Rental is the closest to the actual Market Rent as determined by the
     arbitrators, taking into account the requirements set forth above.
<PAGE>

     (ii) The two (2) arbitrators so appointed shall within five (5) business
     days of the date of the appointment of the last appointed arbitrator agree
     upon and appoint a third arbitrator who shall be qualified under the same
     criteria sets forth hereinabove for qualification of the initial two (2)
     arbitrators.

     (iii) The three (3) arbitrators shall within fifteen (15) days of the
     appointment of the third arbitrator reach a decision as to whether the
     parties shall use Lessor's or Lessee's submitted Fair Market Rental, and
     shall notify Lessor and Lessee thereof.

     (iv) The decision of the majority of the three (3) arbitrators shall be
     binding upon Lessor and Lessee.

     (v) If either Lessor or Lessee fails to appoint an arbitrator within ten
     (10) days after the expiration of the 30-day period, the arbitrator
     appointed by one of them shall reach a decision, notify Lessor and Lessee
     thereof, and such arbitrator's decision shall be binding upon Lessor and
     Lessee.

     (vi) If the two arbitrators fail to agree upon and appoint a third
     arbitrator, or both parties fail to appoint an arbitrator, then the
     appointment of the third arbitrator or any arbitrator shall be dismissed
     and the matter to be decided shall be forthwith submitted to arbitration
     under the provisions of the American Arbitration Association, but subject
     to the instruction set forth in this Paragraph 2(b).

     (vii) The cost of arbitration shall be paid by Lessor and Lessee equally.

3.  RENT:  Lessee agrees to pay Lessor, without prior notice or demand, the Base
Rent described on Page 1, payable in advance at Lessor's address shown on Page 1
on the first day of each month throughout the term of the Lease.  Base Rent
shall be increased annually on the anniversary date of the Commencement Date as
follows:

PERIOD                                      Monthly Base Rent Amount
-----------------------              -----------------------------------
Second Year of Term                               $37,768.00
Third Year of Term                                $38,901.00
Fourth Year of Term                               $40,068.00
Fifth Year of Term                                $41,270.00
Sixth Year of Term                                $42,508.00
Seventh Year of Term                              $43,783.00

     In addition to the Base Rent set forth on Page 1, Rent also includes the
     monthly Amortized Allowances defined in Exhibit B to this Lease, and the
     term "Rent" whenever used herein refers to all these amounts.  Upon
     execution of this Lease by Lessor and Lessee, Lessee shall pay to Lessor
     the Base Rent for the first month of the Lease Term.

4.  ERISA
    -----
Lessor is governed by and subject to regulation under the Employee Retirement
Income Security Act of 1974 (ERISA).  In accordance with requirements under
ERISA, the Lessee hereby represents and warrants to the Lessor that the Lessee
has been neither a Trustee nor an Affiliate of a Trustee of the Plans that
compose the Lessor with the power to appoint or terminate McMorgan and Company
or otherwise negotiation the terms of the employment agreement with McMorgan and
Company within the past year.  An "Affiliate" of a person means:

    1.  any other person directly or indirectly controlling, controlled by or
        under the control with a Trustee, or

    2.  any corporation, partnership, trust or unincorporated enterprise of
        which such person above described is an officer, director, five-percent
        or more partner, or employee (but only if employed by the Plan
        sponsor), or

   3.  any director or employee of the person described above who is a highly
       compensated employee as defined in Section 4975 (e)(2)(H) of the Internal
       Revenue Code, or

   4.  any director or employee of the person described above who has direct or
       indirect authority, responsibility or control regarding the custody,
       management or disposition of Plan assets, or

   5.  a named fiduciary of the Plan, within the meaning of Section 402(a)(2) of
       ERISA.
<PAGE>

       The definition of an Affiliate above is derived from Prohibited
       Transaction Class Exemption 84-14, March 13, 1984 (49 FR 9494);
       (amended October 10, 1985 (50 FR 41430)).

   5.  SECURITY DEPOSIT:  Upon Lessee's execution of this Lease, Lessee shall
       deposit with Lessor as a Security Deposit for the performance by Lessee
       of its obligations under this Lease the amount described on Page 1.  If
       Lessee is in default, Lessor may use the Security Deposit, or any
       portion thereof, to cure the default or to compensate Lessor for all
       damage sustained by Lessor resulting from Lessee's default.  Lessee
       shall immediately on demand pay to Lessor a sum equal to the portion of
       the Security Deposit so applied so as to maintain the Security Deposit
       in the sum initially deposited with Lessor.  As soon as practicable
       after the termination of this Lease, Lessor shall return the Security
       Deposit to Lessee, less such amounts as are reasonably necessary to
       remedy Lessee's defaults.  Lessor shall not be required to keep the
       Security Deposit separate from other funds and, unless otherwise
       required by law, Lessee shall not be entitled to interest on the
       Security Deposit.

   6.  LANDLORD'S WORK:  Prior to the Commencement Date Lessor shall install the
       improvements on the Premises described as "Landlord's Work" in Exhibit
       B, which is attached and incorporated herein by this reference, in
       accordance with the criteria set forth therein.

   7.  UTILITIES:  Lessee shall pay the cost of all gas, heat, electricity,
       telephone and utilities billed or metered separately to Lessee.

   8.  LATE CHARGES:  Lessee acknowledges that late payment by Lessee to
       Lessor of Rent, expenses, utility costs or other sums due hereunder,
       will cause Lessor to incur costs not contemplated by this Lease and the
       exact amount of such costs are extremely difficult and impracticable to
       fix.  Such costs include, without limitation, processing and accounting
       charges, and late charges that may be imposed on Lessor by the terms of
       any note secured by any encumbrance against the Premises.  Therefore,
       if any installment of Rent or other sums due from Lessee is not
       received by Lessor when due, Lessee shall pay to Lessor a sum
       equal to five percent (5%) of such overdue amount as a late charge.
       The parties agree that this late charge represents a fair and reasonable
       estimate of the costs that Lessor will incur by reason of late payment
       by Lessee.  Acceptance of any late charge shall not constitute a
       waiver of Lessee's default with respect to the overdue amount, nor
       prevent Lessor from exercising any of the other rights and remedies
       available to Lessor.

   9.  USE OF PREMISES:  The Premises are to be used for the uses stated on
       Page 1 and for no other purposes without Lessor's prior written consent,
       which shall not be unreasonably withheld.  Lessor may withhold its
       consent to any change of use on any commercially reasonable grounds,
       including, but not limited to, the following grounds which are hereby
       deemed by Lessee to be reasonable:

          (a) if the proposed changed use will conflict or be incompatible with
       other uses in the Park;

          (b) if such proposed changed use would impact the Common Areas or
       result in increased requirements for services or utilities furnished
       by Lessor;

         (c)  if such proposed changed use would cause unusual wear and tear
       on the Premises or overload or overburden the structure or create undue
       vibration;

         (d)  if such proposed changed use would require the use of heavy
       machinery and equipment other than that used by Lessee for its permitted
       light manufacturing on or about the Premises;

         (e)  if such proposed changed use would require the use by Lessee on
       the Premises of Hazardous Materials at a level which creates more risk
       than the use of Hazardous Materials by Lessee in its business as of the
       date of this Lease; or

        (f)  if such proposed changed use creates inappropriate or dangerous
       uses of the Premises.

       Lessee shall not do or permit anything to be done in or about the
       Premises nor keep or bring anything therein which will in any way
       increase the existing rate of or affect any policy of fire or other
       insurance upon the Building or any of its contents, or cause a
       cancellation of any insurance policy.  Lessee shall not do or permit
       anything to be done in or about the Premises which will in any way
       obstruct or interfere with the rights of  other tenants or occupants of
<PAGE>

       the Building or other buildings in the Park or injure or annoy other
       tenants or use or allow the Premises to be used for any improper,
       immoral, unlawful or objectionable purpose, nor shall
       Lessee cause, maintain or permit any nuisance in, on or about the
       Premises. Lessee shall not damage or deface or otherwise commit or
       suffer to be committed any waste in or upon the Premises.  Lessee shall
       honor the terms of all recorded covenants, conditions and restrictions
       relating to the property on which the Premises are located.  Lessee shall
       honor the rules and regulations attached to and made a part of this Lease
       as Exhibit C and any other reasonable regulations of the Lessor related
       to parking and the operation of the Park.  Lessee shall, at Lessee's
       expense, faithfully observe and comply with all Municipal, State and
       Federal statutes or rules, regulations, ordinances, requirements, and
       orders, pertaining to the Premises or Lessee's use thereof, including
       without limitation, all statutes, rules, regulations, ordinances,
       requirements, or orders affecting the Premises, the Building or the Park
       now in force or which may hereafter be in force; provided, however, that
       Lessee shall not be required to make structural changes to the Premises
       not related to Lessee's specific use of the Premises unless the
       requirement for such changes is imposed as a result of any improvements
       or additions made or proposed to be made at Lessee's request.

   10. ALTERATIONS AND ADDITIONS:  Lessee shall not install any signs,
       fixtures or improvements to the Premises without the prior written
       consent of Lessor, which consent shall not be unreasonably withheld or
       delayed.  Lessee shall keep the Premises and the property on which the
       Premises are situated free from any liens arising out of any work
       performed, materials furnished or obligations incurred by or on behalf
       of Lessee.  Lessee shall give Lessor ten (10) days' prior written
       notice of any improvements by Lessee, together with a statement of the
       cost thereof, to give Lessor the opportunity to post and record a
       notice of non-responsibility.  As a condition to Lessor's consent to
       the installation of any fixtures or improvements, Lessor may require
       Lessee to post a completion bond for up to 150% of the cost of the
       work.  Upon termination of this Lease, Lessee shall remove any
       improvements made by Lessee and repair any damage caused by the
       installation or removal of such signs, fixtures, furniture, furnishings
       and improvements and leave the Premises in as good condition as they
       were in at the time of the commencement of this Lease, except for
       reasonable wear and tear,casualty damage and condemnation.

       Any work performed at the Building or on the Premises by Lessee or
       Lessee's contractor in connection with improvements shall be subject
       to the following additional requirements:

       (a)  Such work shall not proceed until Lessor has approved (which
            approval shall not be unreasonably withheld or delayed) in writing:
            (i) Lessee's contractor, (ii) the amount and coverage of public
            liability and property damage insurance, with the Lessor named as
            an additional insured, carried by Lessee's contractor, (iii)
            complete and detailed plans and specifications for such work, and
            (iv) a schedule for the work.

      (b)   All work shall be done in conformity with a valid permit when
            required, a copy of which shall be furnished to Lessor before such
            work is commenced. In any case, all such work shall be performed in
            accordance with all applicable laws.  Notwithstanding any failure
            by Lessor to object to any such work, Lessor shall have no
            responsibility for Lessee's failure to comply with applicable laws.

      (c)   Lessee understands that all contractors and subcontractors retained
            at the Park by Lessor or Lessee to perform construction or tenant
            improvement work shall be signatory to the appropriate collective
            bargaining agreement(s) with the labor organizations affiliated with
            the Building and Construction Trades Department of the AFL-CIO or
            with the International Brotherhood of Teamsters.

      (d)   Lessee agrees to indemnify, defend and hold Lessor harmless for any
            work performed, including consequential damages, which is not
            performed in accordance with applicable law or the provisions of
            this Lease.

   11. REPAIRS AND MAINTENANCE:  Lessee shall, at Lessee's sole cost and
       expense, maintain the Premises and adjacent areas in good, clean and
       safe condition and repair to the satisfaction of the Lessor any damage
       caused by Lessee or its employees, agents, invitees, licensees or
       contractors.  Without limiting the generality of the foregoing, Lessee
       shall be solely responsible for maintaining and repairing all plumbing,
       electrical wiring and equipment lighting and interior walls, and
       maintaining the heating, ventilation and air conditioning system
       ("HVAC") serving the Premises.  Lessee shall keep and maintain and
       provide Lessor with a copy of a service contract for the maintenance of
       the HVAC system.

       Except for repairs rendered necessary by the negligence of Lessee, its
       agents, customers, employees and invitees, Lessor shall keep in good
       repair the structural portions of the roof, foundations and exterior
       walls of the Premises (exclusive of glass and exterior doors) and
       underground utility and sewer pipes outside the exterior walls of the
       Building.

       Except for normal maintenance and repair of the items outlined above,
       Lessee shall have no right of access to or install any device on the
       roof of the Building nor make any penetrations of the roof of the
       Building without the express prior written consent of Lessor.
<PAGE>

       Notwithstanding the provisions of the Lease to the contrary, any costs
       incurred by Lessor in providing auxiliary or services or in undertaking
       barrier removal efforts as defined in and pursuant to the Americans with
       Disabilities Act of 1990 and the regulations promulgated thereunder, as
       the same may be amended or supplemented from time to time, or in any
       similar federal, state or local law or ordinance which are directly
       attributable to or arise primarily from Lessee's use or occupancy of
       the Premises or improvements made to the Premises by Lessee shall be
       deemed additional rent, and shall be paid in full by Lessee within
       thirty (30) days after Lessor gives Lessee written notice that such
       cost has been incurred by Lessor.

   12. INSURANCE:  Lessee shall at all times during the term of this Lease,
       and at its sole cost and expense, maintain worker's compensation
       insurance with not less than the minimum limits required by law and
       "broad form" commercial general liability insurance against liability
       for bodily injury and property damage with liability limits as set
       forth on Page 1 with such insurance naming Lessor as an additional
       insured and including such endorsements as may be required by the
       Lessor.  In no event shall the limits of said policy or policies be
       considered as limiting the liability of Lessee under this Lease.

       Lessee shall maintain in full force and effect on all of its personal
       property, furniture, furnishings, trade or business fixtures and
       equipment on the Premises a policy or policies of fire or extended
       coverage insurance.  Lessor will not carry insurance on Lessee's
       personal property.

       All insurance shall be with companies licensed to do business with the
       Insurance Commissioner of the State of California rated A:X or better in
       Best's Key Rating Guide.  Such commercial general liability policy or
       policies shall be issued as primary policies and not contributing with or
       in excess of coverage that Lessor may carry.  A certificate in form ACORD
       27 of such liability insurance shall be delivered to the Lessor prior to
       the Commencement Date of this Lease, and annually thereafter over the
       term of the Lease, which shall certify that the policy names Lessor as an
       additional insured and that the policy shall not be canceled or altered
       without thirty (30) days' prior written notice to Lessor.

   13. LIMITATION OF LIABILITY AND INDEMNITY:  Except for damage resulting from
       the sole negligence of Lessor or its authorized representatives, Lessee
       agrees to save and hold Lessor harmless and indemnify Lessor from and
       against all claims, losses, proceedings, damages, causes of action,
       liabilities, costs, or expenses (including attorneys' fees, costs of
       court and expenses necessary in the prosecution or defense of any
       litigation) by reason of injury to person or property, from whatever
       cause, while in or on the Premises, or in any way connected with the
       Premises or with the improvements or personal property therein,
       including any liability for injury to person or property of Lessee, its
       agents or employees or third party persons.

       Except for damage resulting from the sole negligence of Lessor or
       its authorized representatives, Lessor shall not be liable to Lessee for
       any damage to Lessee or Lessee's property, for any injury to or loss of
       Lessee's business or for any damage or injury to any person from any
       cause.

   14. ASSIGNMENT AND SUBLEASING:  Lessee shall not assign or transfer this
       Lease nor sublet all or any portion of the Premises without the written
       consent of Lessor, which shall not be unreasonably withheld.  If Lessee
       seeks to sublet or assign all or any portion of the Premises, a copy of
       the proposed sublease or assignment agreement and all agreements
       collateral thereto, shall be delivered to Lessor at least thirty (30)
       days prior to the commencement of the sublease or assignment (the
       "Proposed Effective Date").  In the event of an assignment or in
       the event of a sublease where the sublease (1) by itself or taken
       together with prior or other sublease(s) covers or totals, as the case
       may be, more than twenty-five percent (25%) of the rentable square feet
       of the Premises or (2) is for a term which by itself or taken together
       with prior or other subleases is greater than fifty percent (50%) of
       the period remaining in the term of this Lease as of the time of the
       Proposed Effective Date, then Lessor shall have the right, to be
       exercised by giving written notice to Lessee, to recapture the
       space described in the sublease or the entire Premises in the event of an
       assignment.  If such recapture notice is given, it shall serve to
       terminate this Lease with respect to the proposed sublease space, or, if
       the proposed sublease space covers all the Premises or in the event of
       an assignment, it shall serve to terminate the entire Lease, in either
       case as of the Proposed Effective Date.
<PAGE>

       However, no termination of this Lease with respect to part or all of the
       Premises shall become effective without the prior written consent, where
       necessary, of the holder of each deed of trust encumbering the
       Premises or any part thereof.  If this Lease is terminated pursuant to
       the foregoing with respect to less than the entire Premises, the Rent
       shall be adjusted on the basis of the proportion of square feet
       originally demised and this Lease as so amended shall continue
       thereafter in full force and effect.  Each permitted assignee or
       sublessee shall assume and be deemed to assume this Lease and shall be
       and remain liable jointly and severally with Lessee for payment of Rent
       and for the due performance of, and compliance with all the terms,
       covenants, conditions and agreements herein contained on Lessee's part
       to be performed or complied with, for the term of this Lease.  In the
       event of any sublease or assignment of all or any portion of the
       Premises where the Rent reserved in the sublease or assignment exceeds
       the Rent or pro rata portion of the Rent, as the case may be, for such
       space reserved in the Lease, Lessee shall pay Lessor monthly, as
       additional Rent, at the same time as the monthly installments of Rent
       hereunder, one-half (1/2) of the excess of the Rent reserved in the
       sublease over the Rent reserved in this Lease applicable to the
       sublease space.

       Notwithstanding the provisions of this Paragraph 14, Lessee may assign
       this Lease or sublet the Premises or any portion thereof, without
       Lessor's consent and without extending the recapture option of Lessor
       contained in this Paragraph 14, to any corporation or partnership which
       controls, is controlled by, or is under common control with Lessee, or
       to any corporation resulting from a merger or consolidation with
       Lessee or to any entity which purchases substantially all of Lessee's
       assets provided such entity has at the time of the assignment a net
       worth at least equal to the net worth of Lessee as of the Commencement
       Date.  Lessee shall give Lessor not less than ten (10) business days'
       prior written notice of any such assignment or sublease.

   15. SUBROGATION:  Subject to the approval of their respective insurers,
       Lessor and Lessee hereby mutually waive their respective rights of
       recovery against each other from loss or damage to any of their property
       located on or about the Premises that is caused by or results from
       perils covered by property insurance carried by the respective parties,
       to the extent of the proceeds of such insurance actually received with
       respect to such loss or damage.  Each party shall obtain any special
       endorsements, if required by their insurer, to evidence compliance
       with the aforementioned wavier.

   16. AD VALOREM TAXES:  Lessee shall pay before delinquent all taxes assessed
       against the personal property of the Lessee and all taxes attributable
       to any leasehold improvements made by Lessee.

   17. SUBORDINATION:  Lessee shall, upon request of the Lessor, execute any
       instrument necessary or desirable to subordinate this Lease and all its
       rights contained hereunder to any and all encumbrances now or hereafter
       in force against the Park and the Building.

       In the event any proceedings are brought for foreclosure or in the
       event of the exercise of the power of sale under any deed of trust made
       by Lessor covering the Premises or a deed in lieu of foreclosure
       thereunder, Lessee shall attorn to the purchaser upon any such
       foreclosure or sale and recognize as the Lessor under this Lease any
       such purchaser or such transferee who acquires the Premises by deed in
       lieu of foreclosure.

   18. RIGHT OF ENTRY:  Lessee grants to Lessor or its agents the right to enter
       the Premises at all reasonable times for purposes of inspection,
       exhibition, repair or alteration.  Lessor shall at all times have and
       retain a key with which to unlock all the doors in, upon and about the
       Premises, excluding Lessee's vaults and safes, and Lessor shall have
       the right to use any and all means Lessor deems necessary to enter the
       Premises in an emergency.  Lessor shall also have the right to place
       "for rent" and/or "for sale" signs on the outside of the Premises.
       Lessee hereby waives any claim for any of the foregoing arising out of
       the negligent acts or omissions of Lessor or its authorized
       representatives.

   19. ESTOPPEL CERTIFICATE:  Lessee shall execute and deliver to Lessor, upon
       not less than five (5) days' prior written notice, a statement in the
       form attached as Exhibit D certifying that this Lease is unmodified and
       in full force and effect (or, if modified, stating the nature of such
       modification) and the date to which the Rent and other charges are paid
       in advance, if any, and acknowledging that there are not, to Lessee's
       knowledge, any uncured defaults on the part of Lessor hereunder or
       specifying such defaults as are claimed.  Any such statement may be
       conclusively relied upon by any prospective purchaser or
       encumbrancer of the Premises.  Lessee's failure to deliver such
       statement within such time shall be conclusive upon the Lessee that (1)
       this Lease is in full force and effect, without modification except as
       may be represented by Lessor; (2) there are no uncured defaults in the
       Lessor's performance; and (3) not more than one month's rent has been
       paid in advance.
<PAGE>

   20. LESSEE'S DEFAULT:  The occurrence of any one or more of the following
       events shall constitute a default and breach of this Lease by Lessee:

       (a)  The vacation or abandonment of the Premises by the Lessee.

       (b)  The failure by Lessee to make any payment of Rent or any other
            payment required hereunder within five (5) days of the date said
            payment is due.

       (c)  The failure of Lessee to observe, perform or comply with any of the
            conditions or provisions of this Lease for a period, unless
            otherwise noted herein, of ten (10) days after written notice.

       (d)  The Lessee becoming the subject of any bankruptcy (including
            reorganization or arrangement proceedings pursuant to any
            bankruptcy act) or insolvency proceeding whether voluntary or
            involuntary.

       (e)  The Lessee using or storing Hazardous Material on the Premises
            other than as permitted by the provisions of Paragraph 29 below,
            or the release of any hazardous substance, or failure to notify
            Lessor or appropriate federal, state, or local agencies of any
            such release.

      (f)  The Lessee entering any of the relationships listed in Paragraph 4
           above (ERISA Certification) with the Pension Trust Fund comprising
           the Lessor.

   21. REMEDIES FOR LESSEE'S DEFAULT:  In the event of Lessee's default or
       breach of the Lease, Lessor may 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 of the
       Premises to Lessor.  In addition, the Lessor shall have the immediate
       right of re-entry, and if this right of re-entry is exercised following
       abandonment of the Premises by Lessee, Lessor may consider any personal
       property belonging to Lessee and left on the Premises to also have been
       abandoned.

       If Lessee breaches this Lease and abandons the Premises before the end of
       the term, or if Lessee's right to possession is terminated by Lessor
       because of a breach of the Lease, then in either such case, Lessor may
       recover from Lessee all damages suffered by Lessor as a result of
       Lessee's failure to perform its obligations hereunder, including, but
       not restricted to, the worth at the time of the award (computed in
       accordance with paragraph (3) of the subdivision (a) of Section 1951.2
       of the California Civil Code) of the amounts by which the Rent then
       unpaid hereunder for the balance of the Lease term exceeds the amount
       of such loss of Rent for the same period which the Lessee proves could
       be reasonably avoided by Lessor and in such case, Lessor, prior to the
       award, may relet the Premises for the purpose of mitigating damages
       suffered by Lessor because of Lessee's failure to perform its
       obligation hereunder; provided, however, that even though Lessee has
       abandoned the Premises following such breach, this Lease shall
       nevertheless continue in full force and effect for as long as the
       Lessor does not terminate Lessee's right of possession, and until such
       termination, Lessor may enforce all its rights and remedies under this
       Lease, including the right to recover the Rent from Lessee as it becomes
       due hereunder.  The "worth at the time of the award" within the meaning
       of Subparagraphs (a)(1) and (a)(2) of Section 1951.2 of the California
       Civil Code shall be computed by allowing interest at the rate of ten
       percent (10%) per annum.

       The foregoing remedies are not exclusive; they are cumulative in addition
       to any remedies now or later allowed by law or to any equitable remedies
       Lessor may have, and to any remedies Lessor may have under bankruptcy
       laws or laws affecting creditor's rights.

       The wavier by Lessor of any breach of any term of this Lease shall not be
       deemed a wavier of such term or of any subsequent breach thereof.

   22. HOLDING OVER:  If Lessee holds possession of the Premises after the
       term of this Lease with Lessor's consent, Lessee shall become a tenant
       from month to month upon the terms specified at a monthly Rent of 150%
       of the Base Rent due on the last month of the Lease term, payable in
       advance on or before the first day of each month.  All other sums due
       as Rent hereunder shall be paid by Lessee and all other provisions of
       this Lease shall remain in effect.  All options, if any, granted under
       the terms of this Lease shall be deemed terminated and be of not
       effect during said month-to-month tenancy.  Lessee shall continue in
       possession until such tenancy shall be terminated by either Lessor or
       Lessee giving written notice of termination to the other party at least
       thirty (30) days prior to the effective date of termination.
<PAGE>

   23. Lessor's Default:  Lessee agrees to give holder of a deed of trust
       encumbering the Premises ("Trust Deed Holders"), by certified mail, a
       copy of any notice of default served upon the Lessor by Lessee,
       provided that prior to such notice Lessee has been notified in writing
       (by way of Notice of Assignment of Rents and Leases, or otherwise) of
       the address of such Trust Deed Holder. Lessee further agrees that if
       Lessor shall have failed to cure such default within the time, if any,
       provided for in this Lease, then the Trust Deed Holders shall have an
       additional thirty (30) days within which to cure such default or
       if such default cannot be cured within that time, then such additional
       time as may be necessary, if within such thirty (30) days, the Trust
       Deed Holders has commenced and is diligently pursuing the remedies
       necessary to cure such default (including, but not limited to,
       commencement of foreclosure proceedings, if necessary, to effect such
       cure), in which event this Lease shall not be terminated while such
       remedies are being so diligently pursued.

   24. PARKING:  Lessee shall have the use of the number of undesignated parking
       spaces set forth on Page 1.  Lessor shall exercise its best efforts to
       insure that such spaces are available to Lessee for its use, but Lessor
       shall not be required to enforce Lessee's right to use the same.

   25. SALE OF PREMISES:  In the event of any sale of the Premises by Lessor,
       Lessor shall be and is hereby released form its obligations to perform
       under this Lease and the purchaser at such sale or any subsequent sale
       of the Premises shall be deemed, without any further agreement between
       the parties or their successors in interest or between the parties and
       any such purchaser, to have assumed and agreed to carry out any and all
       of the covenants and obligations of the Lessor under this Lease.

   26. WAIVER:  No delay or omission in the exercise of any right or remedy of
       Lessor or any default by Lessee shall impair such a right of remedy or be
       construed as a waiver.

       The subsequent acceptance of Rent by Lessor after breach by Lessee of any
       covenant or term of this Lease shall not be deemed a waiver of such
       breach, and shall not prevent Lessor from maintaining an unlawful
       detainer or other action based on such breach.

       No payment by Lessee or receipt by Lessor of a lesser amount than the
       monthly Rent and other sums due hereunder shall be deemed to be other
       than on account of the earliest Rent or other sums due, nor shall any
       endorsement or statement on any check or accompanying any check or
       payment be deemed an accord and satisfaction and Lessor may accept such
       check or payment without prejudice to Lessor's right to recover the
       balance of such Rent or other sum or pursue any other remedy provided
       in this Lease.

   27. CASUALTY DAMAGE:  If the Premises or any part thereof shall be damaged by
       fire or other casualty, Lessee shall give prompt written notice thereof
       to Lessor.  In case the Building shall be so damaged by fire or other
       casualty that substantial alteration or reconstruction of the Building
       shall, in Lessor's reasonable opinion, be required (whether or not the
       Premises shall have been damaged by such fire or other casualty), Lessor
       may, at its option, terminate this Lease by notifying Lessee in writing
       of such termination within sixty (60) days after the date of such damage,
       in which event the Rent shall be abated as of the date of such damage. If
       Lessor does not elect to terminate this Lease, Lessor shall within ninety
       (90) days after the date of such damage commence to repair and restore
       the Building and shall proceed with reasonable diligence to restore the
       Building (except that Lessor shall not be responsible for delays outside
       its control) to substantially the same condition in which it was
       immediately prior to the happening of the casualty, except that Lessor
       shall not be required to rebuild, repair, or replace any part of Lessee's
       furniture, furnishings or fixtures and equipment removable by Lessee or
       any improvements installed by Lessee under the provisions of this Lease.
       Lessor shall not in any event be required to spend for such work an
       amount in excess of the insurance proceeds actually received by Lessor as
       a result of the fire, or other casualty. Lessor shall not be liable for
       any inconvenience or annoyance to Lessee, injury to the business of
       Lessee, loss of use of any part of the Premises or the Lessee's personal
       property resulting in any way from such damage or the repair thereof,
       except that, subject to the provisions of the next sentence, Lessor shall
       allow Lessee a fair diminution of Rent during the time and to the extent
       the Premises are unfit for occupancy. If the Premises or any other
       portion of the Building be damaged by fire or other casualty resulting
       from the fault or negligence of Lessee or any of Lessee's agents,
       employees or invitees, the Rent shall not be diminished during the repair
       of such damage and Lessee shall be liable to Lessor for the cost and
       expense of the repair and restoration of the Building caused thereby to
       the extent such cost and expense of the repair and restoration of the
       Building caused thereby is not covered by insurance proceeds.

       Except as otherwise provided in this Paragraph 27, Lessee hereby waives
       the provisions of Sections 1932(2), 1933(4), 1941 and 1942 of the
       California Civil Code.
<PAGE>

   28. CONDEMNATION:  If twenty-five percent (25%) or more of the Premises is
       taken for any public or quasi-public purpose of any lawful governmental
       power or authority or sold to a governmental entity to prevent such
       taking, the Lessee or the Lessor may terminate this Lease as of the
       date when physical possession of the Premises is taken by the taking
       authority.  Lessee shall not because of such taking assert any claim
       against the Lessor or the taking authority for any compensation because
       of such taking, and Lessor shall be entitled to receive the entire
       amount of any award without deduction for any estate of interest or
       interest of Lessee.  If a substantial portion of the Building or the
       Park is so taken, Lessor at its option may terminate this Lease.  If
       Lessor does not elect to terminate this Lease, Lessor shall, if
       necessary, promptly proceed to restore the Premises or the Building to
       substantially its same condition prior to such partial taking, allowing
       for the reasonable effects of such taking, and a proportionate
       allowance shall be made to Lessee for the Rent corresponding to the
       time during which, and to the part of the Premises of which, Lessee is
       deprived on account of such taking and restoration.  Lessor shall not be
       required to spend funds for restoration in excess of the amount received
       by Lessor as compensation awarded.

   29. HAZARDOUS MATERIALS.  The Lessee, at its sole cost and expense, shall
       comply with all laws, ordinances, regulations, and standards regulating
       or controlling hazardous wastes or hazardous substances, including,
       without limitation, the Comprehensive Environmental Response,
       Compensation, and Liability Act of 1980, as amended, 42 U.S.C. 9601, et
       seq., the Hazardous Material Transportation Act, 49 U.S.C. 1801, et
       seq., the Resource Conservation and Recovery Act, 42 U.S.C. 6901, et
       seq., the Carpenter-Presley-Tanner Hazardous Substance Account Act,
       Health and Safety Code section 25300, et seq., the Underground Storage
       of Hazardous Substance Act, Health and Safety section 25280, et seq.,
       the Safe Drinking Water and Toxic Enforcement Act of 1986 (Health and
       Safety Code section 25249.5, et seq., and the Hazardous Waste Control
       Law, Health and Safety Code section 25100, et seq. (collectively, the
       "Environmental Laws").  The Lessee hereby indemnifies and at all times
       shall indemnify and hold harmless the Lessor, the Lessor's trustees,
       directors, officers, employees, investment manager(s), attorneys,
       agents, and any successors to the Lessor's interest in the chain of
       title to the Property, their trustees, directors, officers, employees,
       and agents from and against any and all claims, suits, demands,
       response costs, contribution costs, liabilities, losses, or damages,
       directly or indirectly arising out of the existence, use, generation,
       migration, storage, transportation, release, threatened release, or
       disposal of Hazardous Materials (defined below) in, on, or under the
       Property or in the groundwater under the Property and the migration or
       transportation of Hazardous Materials to or from the Property or the
       groundwater underlying the Property.  This indemnity extends to the
       costs incurred by the Lessor or its successors to reasonably repair,
       clean up, dispose of, or remove such Hazardous Materials in order to
       comply with the Environmental Laws, provided the Lessor gives the
       Lessee not less than thirty (30) days' advance written notice of its
       intention to incur such costs.  The Lessee's obligations pursuant to the
       foregoing indemnification and hold harmless agreement shall survive the
       termination of this Lease.  The subtenants, contractors, agents, or
       invitees of the Lessee shall not use, generate, manufacture, store,
       transport, release, threaten release, or dispose of Hazardous Materials
       in, on, or about the Park unless the Lessee shall have received the
       Lessor's prior written consent therefore, which the Lessor may withhold
       or revoke at any time in its reasonable discretion, and shall not cause
       or permit the release or disposal of Hazardous Materials from the Park
       except in compliance with applicable Environmental Laws. The Lessee
       shall not permit any person, including its subtenants, contractors,
       agents, or invitees to use, generate, manufacture, store, transport,
       release, threaten release, or dispose of Hazardous Materials in, on, or
       about the Park or transport Hazardous Materials from the Park unless
       the Lessee shall have received the Lessor's prior written consent
       therefore, which the Lessor may hold or revoke at any time in its
       reasonable discretion and shall not cause or permit the release or
       disposal of Hazardous Materials.  The Lessee shall promptly deliver
       written notice to the Lessor if it obtains knowledge sufficient to infer
       that Hazardous Materials are located on the Park that are not in
       compliance with applicable Environmental Laws or if any third party,
       including without limitation, a governmental agency, claims a
       significant disposal of Hazardous Materials occurred in the Park or is
       being or has been released from the Park, or any such party gives
       notice of its intention to declare the Park to be Border Zone Property
       (as defined in section 25117.4 of the California Health and Safety
       Code).  Upon reasonable written request of the Lessor, the Lessee,
       through its professional engineers and at its cost, shall thoroughly
       investigate suspected Hazardous Materials contamination of the Park.
       The Lessee, using duly licensed and insured contractors, shall promptly
       commence and diligently complete the removal, repair, clean-up, and
       detoxification of any Hazardous Materials from the Park as may be
       required by applicable Environmental Laws.

       Notwithstanding anything to the contrary in this Lease, nothing herein
       shall prevent the Lessee from using materials other than Hazardous
       Materials on the Premises as would be used in the ordinary course of the
       Lessee's business as contemplated by this Lease.  The Lessee does not in
       the course of the Lessee's current business use Hazardous Materials.  If
       during the term of this Lease, the Lessee contemplates utilizing such
<PAGE>

       materials (or subleases/assigns this Lease to a subtenant or assignee who
       utilizes Hazardous Materials), the Lessee shall obtain prior written
       approval from the Lessor, which approval shall not be unreasonably
       withheld.  In connection with such requested approval, the Lessor, at its
       option, and at the Lessee's expense, may cause an engineer selected by
       the Lessor, to review (a) the Lessee's proposed operations, including
       materials to be used, generated, stored, disposed, and manufactured in
       the Lessee's business and (b) the Lessee's compliance with terms of
       this paragraph.  The Lessee shall provide the engineer with such
       information reasonably requested by the engineer to complete the review.
       Thereafter, Lessor may undertake additional reviews, but such reviews
       shall not occur more frequently than once each year unless cause exists
       for some other review schedule.  One-half (1/2) of the fees and costs
       of the engineer for such subsequent reviews shall be paid promptly by
       the Lessee to the Lessor upon receipt of written notice of such fees
       and costs.

       "Hazardous Materials" means any hazardous waste or hazardous substance as
       defined in any federal, state, county, municipal, or local statute,
       ordinance, rule, or regulation applicable to the Property, including,
       without limitation, the Environmental Laws.  "Hazardous Materials" shall
       also include asbestos or asbestos-containing materials, radon gas,
       petroleum or petroleum fractions, urea formaldehyde foam insulation,
       transformers containing levels of polychlorinated biphenyls greater
       than 50 parts per million, and chemicals known to cause cancer or
       reproductive toxicity, whether or not defined as a hazardous waste or
       hazardous substance in any such statute, ordinance, rule or regulation.

   30. FINANCIAL STATEMENTS:  Within ten (10) days after Lessor's request,
       Lessee shall deliver to Lessor the then current audited financial
       statements of Lessee (including interim periods following the end of
       the last fiscal year for which annual statements are available) which
       statements shall be prepared or compiled by a certified public
       accountant and shall present fairly the financial condition of Lessee
       at such dates and the result of its operations and changes in its
       financial positions for the periods ended on such dates.  Any financial
       statements provided by Lessee to Lessor shall be treated as confidential
       by Lessor, however, Lessor may submit Lessee's financial statements to
       any prospective purchaser of the Park or any prospective lender.

   31. REPRESENTATIONS AND WARRANTIES OF LESSEE:  If Lessee is a partnership,
       corporation or limited liability company, Lessee hereby makes the
       following representations and warranties, each of which is material and
       being relied upon by Lessor, is true in all respects as of the date of
       this Lease, and shall survive the expiration or termination of the Lease.

          (a) Lessee is duly organized, validly existing and in good standing
       under the laws of the state of its organization and the persons executing
       this Lease on behalf of Lessee have the full right and authority to
       execute this Lease on behalf of Lessee and to bind Lessee without the
       consent or approval of any other person or entity.  Lessee has full
       power, capacity, authority and legal right to execute and deliver this
       Lease and to perform all of its obligations hereunder.  This Lease is a
       legal, valid and binding obligation of Lessee, enforceable in
       accordance with its terms.

          (b) Lessee has not (1) made a general assignment for the benefit of
       creditors, (2) filed any voluntary petition in bankruptcy or suffered the
       filing of an involuntary petition by any creditors, (3) suffered the
       appointment of a receiver to take possession of all or substantially all
       of its assets, (4) suffered the attachment or other judicial seizure of
       all or substantially all of its assets, (5) admitted in writing its
       inability to pay its debts as they come due, or (6) made an offer of
       settlement, extension or composition to its creditors generally.

   32. RIGHT OF FIRST OFFER:  Provided Lessee is not in Default under the Lease,
       Lessor agrees that in the event the premises immediately adjacent to the
       Premises, which premises are depicted as the "Right of First Offer
       Premises" in Exhibit E, which is attached to this Lease ("Right of First
       Offer Premises"), becomes available for re-letting to third parties after
       the expiration of the Lease of the existing tenants of the First Offer
       Premises and as long as the existing tenant elects to vacate the Right of
       First Offer Premises, Lessor shall notify Lessee in writing of the
       availability of the Right of First Offer Premises and the anticipated
       date on which the Right of First Offer Premises will be vacated by the
       then existing tenant. For a period of ten (10) days following receipt of
       Lessor's written notice containing the above specified information,
       Lessee shall have a one-time right of first offer ("Right of First
       Offer") to lease the Right of First Offer Premises at the same rental
       rate per square foot and upon all such other terms and conditions as set
       forth in this Lease. Lessee shall exercise the Right of First Offer as
       set forth in this paragraph by giving Lessor written notice of its
       exercise within the above specified (10) day period. If Lessee fails to
       timely exercise the Right of First Offer set forth in this paragraph,
       then the Right of First Offer shall expire and be of no further force or
       effect and thereafter Lessor shall be entitled to place the Right of
       First Offer Premises on the open market for lease by third parties. This
       paragraph shall not apply if the existing tenant of the Right of First
       Offer Premises has exercised a right to extend, renew or renegotiate the
       terms of its lease for the Right of First Offer Premises.
<PAGE>

       If Lessee exercises its Right of First Offer as set forth in this
       Paragraph 32, Lessor and Lessee shall execute an amendment to this Lease
       ("Amendment") adjusting the Base Rent to reflect the addition of the
       Right of First Offer Premises to the Premises and increasing the amount
       of the Security Deposit by an amount which equals the highest monthly
       Base Rent attributable to the Right of First Offer Premises during the
       remainder of the Term.  The provisions of Exhibit B shall not be
       applicable to the Right of First Offer Premises.  Lessor shall have no
       obligation to make any improvements to the Right of First Offer
       Premises.  Notwithstanding the exercise by Lessee of the Right of First
       Offer, in the event that Lessee is in Default of the Lease at any time
       from the date it exercises the Right of First Offer through the date on
       which Lessee's lease of the Right of First Offer Premises commences
       under the Amendment, then at Lessor's election and upon written notice
       by Lessor to Lessee, Lessee's exercise of the Right of First Offer may
       be voided by Lessor.

   33. QUIET ENJOYMENT:  Lessor covenants that Lessee, upon performing the
       terms, conditions and covenants of this Lease, shall have quiet and
       peaceful possession of the Premises as against any person claiming the
       same by, through or under Lessor.

   34.  GENERAL PROVISION:
        -----------------

          (a) TIME.  Time is of the essence in this Lease and with respect to
       each and all of its provisions in which performance is a factor.

          (b) SUCCESSORS AND ASSIGNS.  The covenants and conditions herein
       contained, subject to the provisions as to assignment, apply to and
       bind the heirs, successors, executors, administrators and assigns of
       the parties hereto.

          (c) RECORDATION.  Lessee shall not record this Lease or a short form
       memorandum hereof without prior written consent of the Lessor.

          (d) LESSOR'S PERSONAL LIABILITY.  The liability of Lessor (which, for
       purposes of this Lease, shall include Lessor and the owner of the
       Building if other than the Lessor) to Lessee for any default by Lessor
       under the terms of this Lease shall be limited to the actual interest
       of Lessor and its present or future partners in the Building and Lessee
       agrees to look solely to Lessor's or Lessor's present or future
       partners' actual interest in the Building for the recovery of any
       judgment against Lessor, it being intended that Lessor shall not be
       personally liable for any judgment or deficiency.  The liability of
       Lessor under this Lease is limited to its actual period of ownership of
       title to the Building, and Lessor shall be released from liability upon
       transfer of title to the Building.

          (e) SEPARABILITY.  Any provisions of this Lease which shall prove to
       be invalid, void or illegal shall in no way affect, impair or
       invalidate any other provisions hereof and such other provision shall
       remain in full force and effect.

          (f) CHOICE OF LAW.  This Lease shall be governed by the laws of the
       State of California.

          (g) ATTORNEYS' FEES.  In the event any legal action is brought to
       enforce or interpret the provisions of this Lease, the prevailing party
       therein shall be entitled to recover all costs and expenses including
       reasonable attorneys' fees.

          (h) ENTIRE AGREEMENT.  This Lease supersedes any prior agreements and
       contains the entire agreement of the parties on matters covered.  No
       other agreement, statement or promise made by any party that is not in
       writing and signed by all parties to this Lease shall be binding.  This
       Lease shall not be construed to create any form of partnership or joint
       venture between Lessor and Lessee.

          (i) WARRANTY OF AUTHORITY.  Each person executing this agreement on
       behalf of a party represents and warrants that (1) such person is duly
       and validly authorized to do so on behalf of the entity it purports to
       so bind, and (2) if such party is a partnership, corporation or trustee,
       that such partnership, corporation or trustee has full right and
       authority to enter into this Lease and perform all of its obligations
       hereunder.

          (j) NOTICES.  All notices and demands required or permitted to be
       sent to the Lessor or Lessee shall be in writing and shall be sent by
       United States mail, postage prepaid, certified or by personal delivery
       or by overnight courier, addressed to Lessor at Firestone Business Park,
       340 El Camino Real South, Salinas, California 93901, or to Lessee at
       the address listed on Page 1 prior to the Commencement Date and
       following the Commencement Date at the Premises, or to such other place
       as such party may designate in a notice to the other party given as
       provided herein.  Notice shall be deemed given upon the earlier of
       actual receipt or the third day following deposit in the United States
       mail.
<PAGE>

          (k) INTERLINEATION.  The use of underlining or strikeouts within the
       Lease is for reference purposes only.  No other meaning or emphasis is
       intended by this use, nor should any be inferred.

   35. BLANKET ENCUMBRANCE:  Lessee is aware of the fact that the lot on which
       the Premises are located may be subject to a deed of trust, mortgage,
       or other lien known as a "Blanket Encumbrance."  According to
       California law, Lessee could lose its interest through foreclosure of
       the Blanket Encumbrance or other legal process even though Lessee is
       not delinquent in Lessee's payments or other obligations under the Lease.

       IN WITNESS WHEREOF, this Lease is executed on the date and year first
   written above.

LESSEE:  EARLYCHILDHOOD.COM, LLC,
     A California limited liability company

By:    /s/ Kelly Crampton
       ______________________________

Its:    VP-OPERATIONS
        _____________________________

By:    /s/ Jeffrey Grace
       _____________________________

Its:    VP-FINANCE
        _____________________________

LESSOR:  PTF FOR OPERATING ENGINEERS, LLC,
     A Delaware limited liability company

     By:  McMorgan & Company
     Its:  Investment Manager

     By: Patrick Murray
        _______________________
     Patrick Murray

     Its:  Vice President
<PAGE>

                                   EXHIBIT B

                                LANDLORD'S WORK

     Lessor shall make the following improvements to the Premises ("Landlord's
Work"):

1.  Add two (2) grade doors:

2.  Replace warehouse lighting with metal halide HID lights;

3.  Remove paint lines from floor;

4.  Construct two (2) ADA compliant restrooms;

5.  Construct a 30 ft. by 40 ft. employee break room;

6.  Upgrade fire sprinklers to a room density of .30 gallon/2,000 sq. ft.; and

7.  Install hose drops, alarms, strobes, etc. per Wade Reese drawing.

     The Landlord's Work shall be in accordance with mutually accepted plans and
specifications (the "Plans") which shall be approved by Lessor and Lessee on or
before the date which is two (2) weeks following full execution of this Lease by
lessor and Lessee ("Plan Approval Date").  If Lessor and Lessee do not agree
upon the Plans on or before the Plan Approval Date, either Lessor or Lessee may
terminate this lease by giving written notice of termination to the other.  The
Landlord's Work shall be substantially completed prior to delivery of the
Premises to Lessee by Lessor.

     Lessor shall provide an allowance for the planning and construction of the
Landlord's Work (including design, engineering, permit and total construction
costs), in the amount four Hundred Eighty-Five Thousand Dollars ($485,000.00)
("Improvements Allowance").  The Improvements Allowance shall be the maximum
contribution by Lessor for the Landlord's Work.  Landlord's Work shall include
only those improvements within the interior portions of the Premises approved by
Lessor.  Landlord's Work shall specifically not include any alterations,
additions, or improvements installed or constructed by Lessee and any of
Lessee's personal property or trade fixtures.  After the Plans have been
approved by the parties, Lessor shall notify Lessee of the estimated cost of the
Landlord's Work ("Estimated Cost").  If the Estimated Cost exceeds the
Improvements Allowance, Lessee may either eliminate work from the requested
Improvements Allowance or pay to Lessor the amount in excess of the Improvements
Allowance with ten (10) days of receipt by Lessee of Lessor's notice of
Estimated Cost.  If the Estimated Cost does not exceed the Improvements
Allowance or if the Estimated Cost does exceed the Improvements Allowance, but
Lessee pays to Lessor the amount in excess of the Improvements Allowance, Lessor
shall commence construction of the Landlord's Work and diligently proceed to
complete same.  All amounts of the Improvements Allowance in excess of the
amount of One Hundred Eighty-Five Thousand Dollars ($185,000.00) expended by
Lessor in the construction of the Landlord's Work up to the total amount of the
Improvements Allowance shall be paid to Lessor by Lessee by amortizing such
amount (the "Amortized Allowance") over the seven (7) years of the Initial Term
with interest thereon at the rate of ten percent (10%) per annum on the unpaid
amounts and paid by Lessee along with the monthly Base Rent as additional rent
every month during the seven (7) years of the Initial Term.

<PAGE>

                                   EXHIBIT C

                            FIRESTONE BUSINESS PARK
                             RULES AND REGULATIONS

PURPOSE:

     In a business park setting, it is imperative that certain activities be
     prohibited because they represent a threat to good order ad discipline
     which directly impact on the health, safety or welfare of our lives.  These
     Rules and Regulations are for the mutual benefit and protection of all
     current and future lessees with Firestone Business Park.  Accordingly, each
     lessee agrees to accept the Rules and Regulations.

     Furthermore, Firestone Business Park will enforce these provisions
     according to its business judgment in its sole discretion.  It is agreed
     and understood that Firestone Business Park shall not be subject to any
     claim of any kind for damages or losses suffered as a result of a breach of
     these Rules and Regulations by another party, or the alleged failure of the
     Firestone Business Park to enforce the provisions of these Rules and
     Regulations.

EFFECTIVE DATE:

     These Rules and Regulations are effective as of January 15, 1992 and hereby
     supersede all previous Rules and Regulations.

CONTROLLED SUBSTANCES:

     It is strictly forbidden to enter the Firestone Business Park under the
     influence of any controlled substance, or to transport, carry, consume or
     use any intoxicants, narcotics, stimulants, depressants or hallucinogens.
     The giving, selling or delivering of any controlled substance to any other
     person on the premises or trafficking for the sale or delivery of such
     items is forbidden and is illegal. Ethical pharmaceutical drugs on a
     doctor's prescription and over-the-counter drugs are allowed.

SPEED LIMITS:

     A 25 MPH speed limit is in effect for safety reasons, and it will be
     strictly enforced. Flagrant abusers of the speed limit or repeat violators
     will be prohibited from driving in the Firestone Business Park. This
     prohibition extends to both employees and to trucking or transportation
     companies servicing your business.

PARKING:

     All parking shall be in designated parking areas only.  Illegally parked
     vehicles, improperly parked vehicles taking two or more spaces, or those
     parked in undesignated areas will be removed at the expense of the lessee.

VEHICULAR STORAGE:

     Due to insurance liability limitations, there shall be no storage of vans,
     cars, trucks, trailers, boats or other vehicles of any sort outside of the
     lessee's leased space.

OUTSIDE STORAGE:

     There shall be no outside storage of wares, goods, materials, containers,
     boxes or pallets.  Such material is a fire hazard that threatens safety and
     is absolutely prohibited.

LOADING AND STAGING:

     All loading and unloading must be conducted entirely at the lessee's
     loading docks or interior lease space.  Staging is the term applied to the
     preparation, presentation or stacking of merchandise for shipping in a
     convenient, ready-to-load location.  All staging of materials must be
     accomplished within each lessee's space.

                                       2

<PAGE>

REFUSE AND TRASH:

     Each lessee is responsible for the safe storage and removal of trash and
     refuse generated by its respective business.  Trash containers shall not be
     allowed to overflow and, in wind conditions, trash containers must be
     tarped to prevent the blowing of trash around the Firestone Business Park
     and into other leased spaces.

VEHICULAR MAINTENANCE AND REPAIR:

     There shall be no maintenance or repairs performed on any automobile,
     truck, cab, van trailer or other vehicle, whether it is parked on concrete,
     asphalt, blacktop, dirt or any other surface in Firestone Business Park.
     With the exception of such minor repairs or assistance such as jump-
     starting dead batteries, all vehicles must be removed from the Firestone
     Business Park for servicing.  This prohibition also applies to oil changes,
     filter changes and lubrication.

POLLUTION AND NUISANCE:

     Any type of activity or business application that produces offensive noise,
     dirt, smoke, odor or other nuisance is strictly prohibited.  This
     prohibition extends to the running of gasoline or diesel engines inside
     warehousing or other enclosed spaces.  Firestone Business Park management
     has the sole discretion to determine whether any business activity that
     produces noise, dirt, smoke, odor or other nuisances is of a nature that
     should be prohibited.

SAFETY AND SECURITY:

     The personnel of the Safety and Security Force may not be utilized to halt
     shipments, stop trucking or engage in other activities resulting from
     internal labor-management disputes.  The Safety and Security Force is
     authorized to act in the event there has been a criminal act committed and
     to provide safety-related services.

ANIMALS:

     No animals shall be brought or kept upon the Firestone Business Park,
     except seeing eye dogs.

                                       3

<PAGE>

                                   EXHIBIT D
                                   ---------

                              ESTOPPEL CERTIFICATE

LEASE DATED:____________________

BETWEEN:  PTF FOR OPERATING ENGINEERS, LLC, a Delaware limited liability
          company, as "Lessor"

AND       EARLYCHILDHOOD.COM, LLC, a California limited liability company, as
          "Lessee", demising premises located and addressed as:
          Space:  32
                  340 EL CAMINO REAL SOUTH
                  SALINAS, CA 93901

Ladies and Gentlemen:

The undersigned Lessee hereby certifies with respect to the above described
Lease as follows:

1.  All space and improvements leased by Lessee pursuant to the Lease have been
    completed and furnished in accordance with the provisions of the Lease, and
    Lessee has accepted and taken possession of the Premises. All obligations of
    Lessor to Lessee with respect to improvements to the Premises have been
    performed;

2.  Lessor has satisfied all commitments made to induce Lessee to enter into the
    Lease, and Lessor is not in any respect in default in the performance by
    Lessor of its obligations under the Lease;

3.  Lessee is not in any respect in default under the Lease and has not
    assigned, cosigned, sublet, transferred or hypothecated its interest or any
    part thereof under the Lease;

4.  The Lease (including any option or renewal term) is for a total term of
    approximately ___ years commencing __________, 200__ (the "Commencement
    Date") and ending ______________, 200__. The Lease is in full force and
    effect and has not been modified, altered or amended and contains the entire
    agreement between Lessor and Lessee except:

    (List amendments and modification and date of execution or write "None")

5.  Rental under the Lease has been paid through ________, 200__ and was payable
    from the Commencement Date: ________________, 200__.

6.  The Base Rent is $_________ per month at this time:

7.  There are no offsets or credits against Rent payable under the Lease, and
    Lessee has made no payment to Lessor as a security deposit or advance or
    prepaid rental except: (i) payments expressly provided for in the Lease or
    in an amendment or modification to the Lease described above; and (ii)
    payments made no earlier than ten (10) days prior to the date upon which
    such payments are due;

8.  Except as expressly provided in the Lease or in an amendment or modification
    to the Lease which is described above, Lessee does not have any right to
    renew or extend the term of the Lease nor any option or preferential right
    to purchase all or any part of the Premises or all or any part of the
    building of which the Premises are a part, nor any right, title or interest
    with respect to the Premises other than as Lessee under the Lease;

9.  Lessee acknowledges that this certificate is a material inducement to
    prospective lenders and/or purchasers to incur financial obligation in
    respect hereof, and that such lenders or purchasers will rely upon the
    statements contained herein;

10. That the above described Lease represents the entire agreement between the
    parties as to said leasing.

                                       4

<PAGE>

The undersigned hereby agrees:

(a)  To disclaim all right, title or interest in said Premises except the rights
     granted by said Lease;

(b)  To send a copy of any notice or demand given or made to the Lessor pursuant
     to the provision of said Lease, by certified mail to the owner and holder
     of any first mortgage on the demised Premises, or its assignee upon being
     notified in writing of such mortgagee's or assignee's name and address; and

(c)  To give to the holder of said mortgage or its assignee the same right as
     the Lessor has to cure any default complained of in said notice or demand.

Executed this _____________ day of _______________, 200__.

______________________________
______________________________

By:___________________________

Its:___________________________

By:___________________________

Its:___________________________

                                       5

<PAGE>

Map of Firestone Business Park goes here.

                                       6

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