Document:

<PAGE>
                                                                    Exhibit 10.4

[United Kingdom Form - Early Exercise]

                        ACCENT OPTICAL TECHNOLOGIES, INC.
                              STOCK INCENTIVE PLAN
                       NONQUALIFIED STOCK OPTION AGREEMENT

         THIS NONQUALIFIED STOCK OPTION AGREEMENT (this "OPTION AGREEMENT") by
and between Accent Optical Technologies, Inc., a Delaware corporation (the
"CORPORATION"), and _____________________________ (the "PARTICIPANT") evidences
the nonqualified stock option (the "OPTION") granted by the Corporation to the
Participant as to the number of shares of the Corporation's Common Stock,
$0.00001 par value, first set forth below.

--------------------------------------------------------------------------------
NUMBER OF SHARES OF COMMON STOCK:(1) ________       AWARD DATE:  _______________

EXERCISE PRICE PER SHARE:(1)         $________   EXPIRATION DATE:(1),(2) _______

VESTING(1),(2) [The Option shall become vested as to one-eighth (1/8th) of the
total number of shares of Common Stock subject to the Option on the last day of
the sixth month following the month in which the Award Date occurs (the "Initial
Vesting Date"). An additional one forty-eighth (1/48th) of the total number of
shares of Common Stock subject to the Option shall vest on the last day of each
month commencing with the month following the month in which the Initial Vesting
Date occurs and for the 41 months thereafter.]
--------------------------------------------------------------------------------

         The Option is granted under the Accent Optical Technologies, Inc. Stock
Incentive Plan (the "PLAN") and subject to the Terms and Conditions of
Nonqualified Stock Option (the "TERMS") attached to this Option Agreement
(incorporated herein by this reference) and to the Plan. The Option has been
granted to the Participant in addition to, and not in lieu of, any other form of
compensation otherwise payable or to be paid to the Participant. The Option is
not and shall not be deemed to be an incentive stock option within the meaning
of Section 422 of the Code. Capitalized terms are defined in the Plan if not
defined herein. The parties agree to the terms of the Option set forth herein.
The Participant acknowledges receipt of a copy of the Terms and the Plan,
specifically acknowledges and agrees to Section 10 of the Terms, and agrees to
maintain in confidence all information provided to him/her in connection with
the Option.

"PARTICIPANT"                                ACCENT OPTICAL TECHNOLOGIES, INC.,
                                             a Delaware corporation

---------------------------------
Signature
                                             By:
---------------------------------               --------------------------------
Print Name
                                             Its:
---------------------------------                -------------------------------
Address

---------------------------------
City, State, Zip Code

                                CONSENT OF SPOUSE

         In consideration of the Corporation's execution of this Option
Agreement, the undersigned spouse of the Participant agrees to be bound by all
of the terms and provisions hereof and of the Plan.

----------------------------------                   ----------------------
Signature of Spouse                                  Date

-----------------
(1) Subject to adjustment under Section 4.2 of the Plan.
(2) Subject to early termination under Section 2.6 or 4.2 of the Plan.

<PAGE>

                TERMS AND CONDITIONS OF NONQUALIFIED STOCK OPTION

1.       VESTING; LIMITS ON EXERCISE.

         As set forth on the cover page of this Option Agreement, the Option
shall vest in percentage installments of the aggregate number of shares of
Common Stock subject to the Option.

         -    Cumulative Exercisability. The Participant has the right to
              exercise the Option (to the extent not previously exercised), and
              such right shall continue, until the expiration or earlier
              termination of the Option.

         -    No Fractional Shares. Fractional share interests shall be
              disregarded, but may be cumulated.

         -    Minimum Exercise. No fewer than 100(1) shares of Common Stock
              may be purchased at any one time, unless the number purchased is
              the total number at the time exercisable under the Option.

2.       CONTINUANCE OF EMPLOYMENT/SERVICE REQUIRED; NO EMPLOYMENT/SERVICE
         COMMITMENT.

         The vesting schedule requires continued employment or service through
each applicable vesting date as a condition to the vesting of the applicable
installment of the Option and the rights and benefits under this Option
Agreement. Partial employment or service, even if substantial, during any
vesting period will not entitle the Participant to any proportionate vesting or
avoid or mitigate a termination of rights and benefits upon or following a
termination of employment or services as provided in Section 4 below, under the
Plan, or under the applicable Exercise Agreement (as such term is defined
below).

         Nothing contained in this Option Agreement, the Plan, or any Exercise
Agreement constitutes an employment or service commitment by the Company,
affects the Participant's status, if he or she is an employee, as an employee at
will who is subject to termination without cause, confers upon the Participant
any right to remain employed by or in service to the Company or any Subsidiary,
interferes in any way with the right of the Company or any Subsidiary at any
time to terminate such employment or service, or affects the right of the
Company or any Subsidiary to increase or decrease the Participant's other
compensation.

3.       METHOD OF EXERCISE OF OPTION.

         To the extent that the Participant desires to exercise a portion of the
Option that is then vested, the Participant shall deliver to the Corporation an
executed Exercise Agreement in substantially the form attached hereto as Exhibit
A and satisfy the other exercise procedures described below. The Participant
also has the right, until the date that is ninety (90) days after the Award Date
(the "UNVESTED EXERCISE DEADLINE"), to exercise the unvested portion of the
Option. After the Unvested Exercise Deadline, the Option may only be exercised
to the extent that it is then vested. To the extent that the Participant desires
to exercise a portion of the Option that is not vested, the Participant shall
deliver to the Corporation, on or before the Unvested Exercise Deadline, an
executed Exercise Agreement in substantially the form attached hereto as Exhibit
B and satisfy the other exercise procedures described below. The applicable form
of Exercise Agreement is referred to as the "EXERCISE AGREEMENT."

                                       1
<PAGE>

         The Option is exercisable (whether the exercise is with respect to the
vested or the unvested portion of the Option, as described above) by the
delivery to the Secretary of the Corporation of a written notice stating the
number of shares of Common Stock to be purchased pursuant to the Option and
accompanied by:

         -    delivery of an executed Exercise Agreement in substantially the
              form attached hereto as Exhibit A or Exhibit B, as applicable (see
              the Exercise Agreement discussion above), or such other form as
              the Committee may require from time to time;

         -    delivery of an executed Election Agreement in substantially the
              form attached hereto as Exhibit C or such other form as the
              Committee may require from time to time (the "ELECTION
              AGREEMENT");

         -    delivery of an executed Securityholders Agreement in substantially
              the form attached hereto as Exhibit D or such other form as the
              Committee may require from time to time (the "SECURITYHOLDERS
              AGREEMENT");

         -    payment in full for the Exercise Price of the shares to be
              purchased, in cash or by electronic funds transfer to the
              Corporation, or by certified or cashier's check payable to the
              order of the Corporation subject to such specific procedures or
              directions as the Committee may establish;

         -    satisfaction of the tax withholding provisions of Section 4.4 of
              the Plan; and

         -    any written statements or agreements required pursuant to Section
              4.3 of the Plan.

The Committee also may, but is not required to, authorize a non-cash payment
alternative specified below at or prior to the time of exercise. In which case,
the Exercise Price and/or applicable withholding taxes, to the extent so
authorized, may be paid in full or in part by delivery to the Corporation of:

         -    shares of Common Stock already owned by the Participant, valued at
              their Fair Market Value on the exercise date, provided, however,
              that any shares acquired directly from the Corporation (upon
              exercise of a stock option or otherwise) must have been owned by
              the Participant for at least six (6) months before they can be
              used in connection with an exercise of the Option; and/or

         -    a note meeting the requirements of Section 1.6 of the Plan (or, in
              the case of tax loans, Section 4.4.2 of the Plan).

4.       EARLY TERMINATION OF OPTION.

         The Option, to the extent not previously exercised, and all other
rights in respect thereof, whether vested and exercisable or not, shall
terminate and become null and void prior to the Expiration Date in the event of:

         -    the termination of the Participant's employment or services as
              provided in Section 2.6 of the Plan, or

         -    the termination of the Option pursuant to Section 4.2 of the Plan.

                                       2
<PAGE>

5.       NON-TRANSFERABILITY AND OTHER RESTRICTIONS.

         The Option and any other rights of the Participant under this Option
Agreement or the Plan are nontransferable and exercisable only by the
Participant, except as set forth in Section 1.5 of the Plan. Any shares of
Common Stock issued on exercise of the Option are subject to substantial
restrictions on transfer, and are subject to rights in favor of the Corporation
as set forth herein, in the Securityholders Agreement, and in the applicable
Exercise Agreement.

6.       SECURITIES LAW COMPLIANCE.

         The Participant acknowledges that the Option and the shares of Common
Stock are not being registered under the Securities Act, based, in part, in
reliance upon an exemption from registration under Securities and Exchange
Commission Rule 701 promulgated under the Securities Act of 1933, and a
comparable exemption from qualification under the California Corporate
Securities Law, as each may be amended from time to time. The Participant, by
executing this Option Agreement, hereby makes the following representations to
the Corporation and acknowledges that the Corporation's reliance on federal and
state securities law exemptions from registration and qualification is
predicated, in substantial part, upon the accuracy of these representations:

     -   The Participant is acquiring the Option and, if and when he/she
         exercises the Option, will acquire the shares of Common Stock solely
         for the Participant's own account, for investment purposes only, and
         not with a view to or an intent to sell, or to offer for resale in
         connection with any unregistered distribution, all or any portion of
         the shares within the meaning of the Securities Act, the California
         Corporate Securities Law, or other applicable state securities laws.

     -   The Participant has had an opportunity to ask questions and receive
         answers from the Corporation regarding the terms and conditions of the
         Option and the restrictions imposed on any shares of Common Stock
         purchased upon exercise of the Option. The Participant has been
         furnished with, and/or has access to, such information as he or she
         considers necessary or appropriate for deciding whether to exercise the
         Option and purchase shares of Common Stock. However, in evaluating the
         merits and risks of an investment in the Common Stock, the Participant
         has and will rely upon the advice of his/her own legal counsel, tax
         advisors, and/or investment advisors.

     -   The Participant is aware that the Option may be of no practical value,
         that any value it may have depends on its vesting and exercisability as
         well as an increase in the Fair Market Value of the underlying shares
         of Common Stock to an amount in excess of the Exercise Price, and that
         any investment in common shares of a closely held corporation such as
         the Corporation is non-marketable, non-transferable and could require
         capital to be invested for an indefinite period of time, possibly
         without return, and at substantial risk of loss.

     -   The Participant understands that any shares of Common Stock acquired on
         exercise of the Option will be characterized as "restricted securities"
         under the federal securities laws, and that, under such laws and
         applicable regulations, such securities may be resold without
         registration under the Securities Act only in certain limited
         circumstances, including in accordance with the conditions of Rule 144
         promulgated under the Securities Act, as presently in effect, with
         which the Participant is familiar.

                                       3
<PAGE>

     -   The Participant has read and understands the restrictions and
         limitations set forth in the Plan, this Option Agreement (including
         these Terms), the applicable Exercise Agreement, and the
         Securityholders Agreement, which are imposed on the Option and any
         shares of Common Stock which may be acquired upon exercise of the
         Option.

     -   At no time was an oral representation made to the Participant relating
         to the Option or the purchase of shares of Common Stock and the
         Participant was not presented with or solicited by any promotional
         meeting or material relating to the Option or the Common Stock.

7.       LOCK-UP AGREEMENT.

         Neither the Participant (nor any permitted transferee) may, directly or
indirectly, offer, sell or transfer or dispose of any of the shares of Common
Stock acquired upon exercise of the Option (the "SHARES") or any interest
therein (or agree to do any thereof) (collectively, a "TRANSFER") during the
period commencing as of 14 days prior to and ending one year, or such lesser
period of time as the relevant underwriters may permit, after the effective date
of a registration statement covering any public offering of the Corporation's
securities of which the Participant has notice. (The term "Participant"
includes, where the context so requires, any permitted direct or indirect
transferee of the Participant.) The Participant shall agree and consent to the
entry of stop transfer instructions with the Corporation's transfer agent
against the Transfer of the Corporation's securities beneficially owned by the
Participant and shall conform the limitations hereunder and under the Exercise
Agreement by agreement with and for the benefit of the relevant underwriters by
a lock-up agreement or other agreement in customary form. Notwithstanding
anything else herein to the contrary, this Section 7 shall not be construed so
as to prohibit the Participant from participating in a registration or a public
offering of the Common Stock with respect to any shares which he or she may hold
at that time, provided, however, that such participation shall be at the sole
discretion of the Board.

8.       PLAN.

         The Option and all rights of the Participant under this Option
Agreement are subject to, and the Participant agrees to be bound by, all of the
terms and conditions of the Plan, incorporated herein by this reference. In the
event of a conflict or inconsistency between the terms and conditions of this
Option Agreement and of the Plan, the terms and conditions of the Plan shall
govern. The Participant acknowledges receipt of a copy of the Plan and agrees to
be bound by the terms thereof and of this Option Agreement. The Participant
acknowledges reading and understanding the Plan and this Option Agreement.
Unless otherwise expressly provided in other sections of this Option Agreement,
provisions of the Plan that confer discretionary authority on the Board or the
Committee do not and shall not be deemed to create any rights in the Participant
unless such rights are expressly set forth herein or are otherwise in the sole
discretion of the Board or the Committee so conferred by appropriate action of
the Board or the Committee under the Plan after the date hereof.

9.       ENTIRE AGREEMENT.

         This Option Agreement (including these Terms and together with the
forms of Exercise Agreement, Securityholders Agreement and Election Agreement
attached hereto) and the Plan together constitute the entire agreement and
supersede all prior understandings and agreements, written or oral, of the
parties hereto with respect to the subject matter hereof. The Plan, this Option
Agreement and the Exercise Agreements may be amended pursuant to Section 4.5 of
the Plan. Such amendment must be in writing and signed by the Corporation. The
Corporation may,

                                       4
<PAGE>

however, unilaterally waive any provision hereof, of the Exercise Agreements, or
of the Election Agreement in writing to the extent such waiver does not
adversely affect the interests of the Participant hereunder, but no such waiver
shall operate as or be construed to be a subsequent waiver of the same provision
or a waiver of any other provision hereof.

10.      SATISFACTION OF ALL RIGHTS TO EQUITY.

         The Option is in complete satisfaction of any and all rights that the
Participant may have (under an employment, consulting, or other written or oral
agreement with the Company, or otherwise) to receive (1) stock options or a
restricted stock award with respect to the Company's securities, and/or (2) any
other equity or derivative security in or with respect to the Company. This
Option Agreement supersedes the terms of all prior understandings and
agreements, written or oral, of the parties with respect to such matters. The
Participant shall have no further rights or benefits under any prior agreement
conveying any right with respect to any security or derivative security in or
with respect to the Company. The foregoing notwithstanding, this Section 10
shall not adversely affect the Participant's rights under any prior option or
restricted stock agreement under the Plan (provided such agreement is expressly
labeled as an option, restricted stock, or award agreement under the Plan and is
similar in form to this Option Agreement) which has been signed by an authorized
officer of the Corporation.

11.      GOVERNING LAW; LIMITED RIGHTS; SEVERABILITY.

         11.1. DELAWARE LAW. This Option Agreement and the Exercise Agreements
shall be governed by and construed and enforced in accordance with the laws of
the State of Delaware without regard to conflict of law principles thereunder.

         11.2. LIMITED RIGHTS. The Participant has no rights as a stockholder of
the Corporation with respect to the Option as set forth in Section 4.6 of the
Plan. The Option does not place any limit on the corporate authority of the
Corporation as set forth in Section 4.12 of the Plan.

         11.3. ARBITRATION. Any dispute, controversy or claim arising out of or
relating to this Option Agreement (including these Terms), the Plan, and/or the
applicable Exercise Agreement, their enforcement or interpretation, or because
of an alleged breach, default, or misrepresentation in connection with any of
their provisions, will be determined exclusively by confidential, final and
binding arbitration in Orange County, California, before a sole neutral
arbitrator (the "ARBITRATOR") selected from and in accordance with the rules of
the American Arbitration Association, and such arbitration shall be conducted in
accordance with the provisions of California Civil Procedure Code ss.ss. 1282 -
1284.2 as the exclusive remedy of such dispute. The arbitrator's award in any
such proceeding will be final, binding, and conclusive upon the parties, subject
only to judicial review provided by statute, and a judgment rendered on the
arbitration award can be entered in any state or federal court having
jurisdiction thereof. Disputes, controversies or claims subject to final and
binding arbitration under this Agreement include, without limitation, all those
that could otherwise be tried in court to a judge or jury in the absence of this
Section 11.3. The Participant and the Corporation agree that they each expressly
waive any rights to have such matters heard or tried before a judge or jury in
another tribunal. Nothing in this Section 11.3, however, shall limit the right
of the parties to stipulate and agree to conduct the arbitration before and
pursuant to the then existing rules of any other agreed-upon arbitration
services provider.

         11.4. COMPLIANCE WITH LAWS; SEVERABILITY. This Option Agreement, the
Securityholders Agreement, and the applicable Exercise Agreement are subject to
compliance with all applicable laws (including, without limitation, applicable
securities laws) as set forth in Section 4.3 of the Plan. If the arbitrator
selected in accordance with Section 11.3 or a court of

                                       5
<PAGE>

competent jurisdiction determines that any portion of this Option Agreement, the
Plan, the applicable Exercise Agreement, the Securityholders Agreement, or the
Election Agreement is in violation of any statute or public policy, then only
the portions of this Option Agreement, the Plan, the Securityholders Agreement,
the Exercise Agreement, or the Election Agreement, as applicable, which violate
such statute or public policy shall be stricken, and all portions of this Option
Agreement, the Plan, the Securityholders Agreement, the Exercise Agreement and
the Election Agreement which do not violate any statute or public policy shall
continue in full force and effect. Furthermore, it is the parties' intent that
any court order striking any portion of this Option Agreement, the Plan, the
Securityholders Agreement, the Exercise Agreement, or the Election Agreement
should modify the stricken terms as narrowly as possible to give as much effect
as possible to the intentions of the parties hereunder.

         11.5. STOCKHOLDER APPROVAL. Notwithstanding anything else contained
herein to the contrary, the Option and all rights of the Participant under this
Option Agreement are subject to approval of the Plan by the Corporation's
stockholders (such approval to be obtained in accordance with the terms of the
Plan, the Company's Bylaws, and applicable law) within 12 months after the
Effective Date of the Plan.

(Remainder of Page Intentionally Left Blank)

                                       6
<PAGE>

                                                                       EXHIBIT A

                        ACCENT OPTICAL TECHNOLOGIES, INC.
                              STOCK INCENTIVE PLAN
                            OPTION EXERCISE AGREEMENT
                           (VESTED PORTION OF OPTION)

         The undersigned (the "PURCHASER") hereby irrevocably elects to exercise
his/her right, evidenced by that certain Nonqualified Stock Option Agreement
dated as of ____________________ (the "OPTION AGREEMENT") under the Accent
Optical Technologies, Inc. Stock Incentive Plan (the "PLAN"), as follows:

         -    the Purchaser hereby irrevocably elects to purchase
              __________________ shares of Common Stock, par value $0.00001 per
              share (the "SHARES"), of Accent Optical Technologies, Inc., a
              Delaware corporation (the "CORPORATION"), and

         -    such purchase shall be at the price of $__________________ per
              share, for an aggregate amount of $__________________ (subject to
              applicable withholding taxes pursuant to Section 4.4 of the Plan).

         Capitalized terms are defined in the Plan or the Option Agreement if
not defined herein.

         1.       DELIVERY OF SHARE CERTIFICATE. The Purchaser requests that a
certificate representing the Shares be registered to Purchaser and delivered to:

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

--------------------.

         2.       INVESTMENT REPRESENTATIONS. The Purchaser acknowledges that
the sale of the Shares by the Purchaser is restricted by SEC Rule 701. The
Purchaser hereby affirms as made as of the date hereof the representations in
Section 6 of the "Terms and Conditions of Nonqualified Stock Option" (which are
attached to and a part of the Option Agreement, the "TERMS") and such
representations are incorporated herein by this reference. The Purchaser
represents that he/she has no need for liquidity in this investment, has the
ability to bear the economic risk of this investment, and can afford a complete
loss of the purchase price for the Shares.

         The Purchaser acknowledges receipt of the Corporation's condensed
consolidated financial information.

         The Purchaser also understands and acknowledges (a) that the
certificates representing the Shares will be legended as provided for in Section
4.3.3 of the Plan, and (b) that the Corporation has no obligation to register
the Shares or file any registration statement under federal or state securities
laws.

         3.       LIMITATION ON DISPOSITION AND OTHER RESTRICTIONS. The Shares
are subject to and the Purchaser hereby agrees to the following terms and
conditions of the sale of the Shares to the Purchaser:

         -    any transfer of the Shares must comply with all applicable laws as
              set forth in Section 4.3 of the Plan;

         -    in addition to the restrictions on transfer under Sections 1.5 and
              4.3 of the Plan, the Shares may not be sold, assigned,
              transferred, pledged or otherwise disposed of, alienated or
              encumbered, either voluntarily or involuntarily, other than to the

                                       1
<PAGE>

              Corporation or another stockholder of the Corporation, or as may
              expressly be permitted in writing by the Corporation or by will or
              the laws of descent and distribution, at any time prior to the
              earlier of (a) the Public Offering Date or (b) 24 months after the
              date of issue;

         -    the Shares are subject to, and following any otherwise permitted
              transfer of the Shares, the Shares shall remain subject to and the
              transferee shall be bound by, the lock-up provisions set forth in
              Section 7 of the Terms, the share legend requirements of Section
              4.3.3 of the Plan, the foregoing provisions of this Section 3, the
              provisions of the Securityholders Agreement, and the arbitration
              provisions of Section 11.3 of the Terms; and

         -    as a condition to any otherwise permitted transfer of the Shares,
              the Corporation may require the transferee to execute a written
              agreement, in a form acceptable to the Committee, that the
              transferee acknowledges and agrees to the foregoing terms and
              restrictions imposed on the Shares.

         4.       PLAN AND OPTION AGREEMENT. The Purchaser acknowledges that all
of his/her rights are subject to, and the Purchaser agrees to be bound by, all
of the terms and conditions of the Plan, the Securityholders Agreement, and the
Option Agreement (including the Terms), each of which is incorporated herein by
this reference. If a conflict or inconsistency between the terms and conditions
of this Exercise Agreement and of the Plan or the Option Agreement shall arise,
the terms and conditions of the Plan and/or the Option Agreement shall govern.
The Purchaser acknowledges receipt of a copy of all documents referenced herein
(including the Terms, the Securityholders Agreement, and a disclosure statement)
and acknowledges reading and understanding these documents and having an
opportunity to ask any questions that he/she may have had about them. Any
controversy or claim arising out of or relating to this Exercise Agreement shall
be submitted to arbitration in accordance with Section 11.3 of the Terms, and
Delaware law shall apply as provided in Section 11.1 of the Terms.

         5.       ENTIRE AGREEMENT. This Exercise Agreement, the Option
Agreement (including the Terms), the Election Agreement, the Securityholders
Agreement, and the Plan together constitute the entire agreement and supersede
all prior understandings and agreements, written or oral, of the parties hereto
with respect to the subject matter hereof. The Plan, the Option Agreement and
this Exercise Agreement may be amended pursuant to Section 4.5 of the Plan. Such
amendment must be in writing and signed by the Corporation. The Corporation may,
however, unilaterally waive any provision hereof or of the Option Agreement in
writing to the extent such waiver does not adversely affect the interests of the
Purchaser hereunder, but no such waiver shall operate as or be construed to be a
subsequent waiver of the same provision or a waiver of any other provision
hereof.

 "PURCHASER"
                                           ACCEPTED BY:
                                           ACCENT OPTICAL TECHNOLOGIES, INC.
---------------------------------
Signature

                                           By:
---------------------------------             ----------------------------------
Print Name
                                           Its:
                                               ---------------------------------
---------------------------------          (To be completed by the corporation
Date                                       after the price (including applicable
                                           withholding taxes), value (if
                                           applicable) and receipt of funds is
                                           verified.)

                                       2
<PAGE>

                                                                       EXHIBIT B

                        ACCENT OPTICAL TECHNOLOGIES, INC.
                              STOCK INCENTIVE PLAN
                            OPTION EXERCISE AGREEMENT
                          (UNVESTED PORTION OF OPTION)

         The undersigned (the "PURCHASER") hereby irrevocably elects to exercise
his/her right, evidenced by that certain Nonqualified Stock Option Agreement
dated as of ____________________ (the "OPTION AGREEMENT") under the Accent
Optical Technologies, Inc. Stock Incentive Plan (the "PLAN"), as follows:

         -    the Purchaser hereby irrevocably elects to purchase
              __________________ shares of Common Stock, par value $0.00001 per
              share (the "SHARES"), of Accent Optical Technologies, Inc., a
              Delaware corporation (the "CORPORATION"), and

         -    such purchase shall be at the price of $__________________ per
              share, for an aggregate amount of $__________________ (subject to
              applicable withholding taxes pursuant to Section 4.4 of the Plan).

         Capitalized terms are defined in the Plan or the Option Agreement if
not defined herein.

         1.       INVESTMENT REPRESENTATIONS. The Purchaser acknowledges that
the sale of the Shares by the Purchaser is restricted by SEC Rule 701. The
Purchaser hereby affirms as made as of the date hereof the representations in
Section 6 of the "Terms and Conditions of Nonqualified Stock Option" (which are
attached to and a part of the Option Agreement, the "TERMS") and such
representations are incorporated herein by this reference. The Purchaser
represents that he/she has no need for liquidity in this investment, has the
ability to bear the economic risk of this investment, and can afford a complete
loss of the purchase price for the Shares.

         The Purchaser acknowledges receipt of the Corporation's condensed
consolidated financial information.

         The Purchaser also understands and acknowledges (a) that the
certificates representing the Shares will be legended as provided for below and
in Section 4.3.3 of the Plan, and (b) that the Corporation has no obligation to
register the Shares or file any registration statement under federal or state
securities laws.

         In addition to the share legend(s) provided for in Section 4.3.3 of the
Plan, the certificates representing the Shares will bear the following legend:

         "THE SHARES ARE SUBJECT TO THE CORPORATION'S RIGHT TO REPURCHASE THEM
         UNDER THE CORPORATION'S STOCK INCENTIVE PLAN AND AN AGREEMENT WITH THE
         CORPORATION THEREUNDER, COPIES OF WHICH ARE AVAILABLE FOR REVIEW AT THE
         OFFICE OF THE SECRETARY OF THE CORPORATION."

         2.       VESTING. The Shares are being acquired prior to the time that
they have become vested in accordance with the terms of the Option Agreement.
Accordingly, the Shares are subject to the Corporation's repurchase right set
forth in Section 5 below and other restrictions set forth herein. The Shares
shall vest, and the Corporation's repurchase right under Section 5 shall lapse,
as of the date(s) that the Option would have otherwise become vested as to such

                                       1
<PAGE>

Shares. The maximum number of Shares that may vest on any occasion or event
shall not exceed the number of shares that would have otherwise vested on such
date under the Option Agreement had the underlying stock option not been
exercised early to acquire the Shares. No additional Shares shall vest after the
Purchaser's Severance Date.

         3.       DELIVERY OF SHARE CERTIFICATE. The Corporation shall issue a
certificate or certificates for the Shares, registered in the name of the
Purchaser, which certificate(s) shall upon redelivery thereof to the Corporation
pursuant to the following provisions of this Section 3 be held by the
Corporation until the restrictions on such Shares shall have lapsed and the
Shares shall thereby have become vested or the Shares represented thereby are
repurchased by the Corporation in accordance with Section 5.

         Upon delivery to the Purchaser of the certificate(s) representing the
Shares, the Purchaser shall redeliver such certificate(s) to the Corporation,
together with a stock power or stock powers, in blank and in substantially the
form attached hereto, with respect to such certificate(s), to be held by the
Corporation pursuant to the terms hereof. The Purchaser hereby appoints the
Corporation and each of its authorized representatives as the Purchaser's
attorney(s)-in-fact to effect any transfer of the Shares that are repurchased by
the Corporation in accordance with the terms hereof or related cash, property or
rights (including Restricted Property, as such term is defined below) to the
Corporation as may be required pursuant to this Exercise Agreement and to
execute such documents as the Corporation or such representatives deem necessary
or advisable in connection with any such transfer.

         Promptly after the vesting of the Shares in accordance with Section 2
above, a certificate or certificates evidencing the number of shares of Common
Stock as to which the restrictions have lapsed or been released or such lesser
number as may be permitted pursuant to Section 4.4 of the Plan (tax withholding)
shall be delivered to the Purchaser or other person entitled under the terms
hereof and of the Plan to receive the shares. The Purchaser or such other person
shall deliver to the Corporation any representations or other documents or
assurances required pursuant to Section 4.3 of the Plan. The Shares so delivered
shall no longer be subject to the Corporation's repurchase right under Section
5, but such shares shall continue to be subject to the other restrictions set
forth herein, in the Option Agreement, and in the Plan. Vested Shares and any
other amounts deliverable pursuant to the Shares shall be delivered and paid
only to the Purchaser or the Purchaser's Beneficiary or Personal Representative,
as the case may be.

         4.       DIVIDEND; VOTING RIGHTS. After the date of issuance of the
Shares, the Purchaser shall be entitled to cash dividends and voting rights with
respect to the Shares, but such rights shall terminate as to any Shares that are
repurchased by the Corporation in accordance with Section 5. Any securities or
other property receivable in respect of the Shares by the Purchaser as a result
of any dividend or other distribution, conversion or exchange of or with respect
to the Shares are, together, referred to as "RESTRICTED PROPERTY." Upon a
repurchase of any Shares by the Corporation in accordance with Section 5, the
Restricted Property related to such repurchased Shares shall be automatically
transferred to the Corporation, without any further action by the Purchaser (or
the Purchaser's Beneficiary or Personal Representative, as the case may be) or
additional consideration from the Corporation. The Corporation may take any
other action necessary or advisable to evidence such transfer. The Purchaser, or
the Purchaser's Beneficiary or Personal Representative, as the case may be,
shall deliver any additional documents of transfer that the Corporation may
request to confirm the transfer of such Restricted Property to the Corporation.

         5.       CORPORATION'S REPURCHASE RIGHT. Subject to the terms and
conditions of this Section 5, the Corporation shall have the right (the
"REPURCHASE RIGHT") (but not the obligation)

                                       2
<PAGE>

to repurchase in one or more transactions in connection with the termination of
the Purchaser's employment by or services to the Company, and the Purchaser (or
any permitted transferee) shall be obligated to sell any of the Shares that have
not, as of the Purchaser's Severance Date, become vested.

         To exercise the Repurchase Right, the Corporation must give written
notice thereof to the Purchaser (the "REPURCHASE NOTICE"). The Repurchase Notice
is irrevocable by the Corporation and must (a) be in writing and signed by an
authorized officer of the Corporation, (b) set forth the Corporation's intent to
exercise the Repurchase Right and contain the total number of Shares to be sold
to the Corporation pursuant to the exercise of the Repurchase Right, (c) be
mailed or delivered to the Purchaser at the Purchaser's address reflected or
last reflected on the Corporation's payroll records or delivered to the
Purchaser in person, and (d) be so mailed or delivered no later than the
ninetieth (90th) day following the Purchaser's Severance Date. If mailed, the
Repurchase Notice shall be enclosed in a properly sealed envelope, addressed as
aforesaid, and deposited (postage prepaid) in a post office or branch post
office regularly maintained by the United States Government. The Repurchase
Notice shall be deemed to have been duly given as of the date mailed or
delivered in accordance with the foregoing provisions.

         The price per Share to be paid by the Corporation upon settlement of
the Corporation's Repurchase Right (the "REPURCHASE PRICE") shall equal the
lesser of (a) the price paid by the Purchaser to exercise the stock option and
acquire such Share, or (b) the Fair Market Value of a Share determined as of the
date of the Call Notice. No interest shall be paid with respect to and no other
adjustments (other than adjustments in accordance with Section 4.2.1 of the Plan
to reflect stock splits and similar changes in capitalization) shall be made to
the Repurchase Price. The closing of any repurchase under this Section 5 shall
be at a date to be specified by the Corporation, such date to be no later than
90 days after the Purchaser's Severance Date. The Repurchase Price shall be paid
at the closing in the form of a check or by cancellation of money purchase
indebtedness.

         Upon a repurchase of any Shares by the Corporation, such repurchased
Shares shall be automatically transferred to the Corporation, without any
further action by the Purchaser (or the Purchaser's Beneficiary or Personal
Representative, as the case may be). The Corporation may exercise its powers
under this Exercise Agreement (including, without limitation, its powers under
Section 3) and take any other action necessary or advisable to evidence such
transfer. The Purchaser, or the Purchaser's Beneficiary or Personal
Representative, as the case may be, shall deliver any additional documents of
transfer that the Corporation may request to confirm the transfer of such
repurchased Shares to the Corporation.

         If the Purchaser (or any permitted transferee who is an employee of the
Company) ceases to be an employee of the Company and holds Shares as to which
the Corporation's Repurchase Right has been exercised, the Purchaser shall be
entitled to the value of such Shares in accordance with the foregoing provisions
of this Section 5, but (unless otherwise required by law) shall no longer be
entitled to participation in the Corporation or other rights as a shareholder
with respect to the Shares subject to the repurchase. To the maximum extent
permitted by law, the Purchaser's rights following the exercise of the
Repurchase Right shall, with respect to the repurchase and the Shares covered
thereby, be solely the rights that he or she has as a general creditor of the
Corporation to receive payment of the amount specified above in this Section 5.

         The Repurchase Right is in addition to, and not in lieu of, any right
that the Corporation may have under the Securityholders Agreement.

                                       3
<PAGE>

         6.       LIMITATION ON DISPOSITION AND OTHER RESTRICTIONS. The Shares
are subject to and the Purchaser hereby agrees to the following terms and
conditions of the sale of the Shares to the Purchaser:

         -    any transfer of the Shares must comply with all applicable laws as
              set forth in Section 4.3 of the Plan;

         -    in addition to the restrictions on transfer under Sections 1.5 and
              4.3 of the Plan, the Shares may not be sold, assigned,
              transferred, pledged or otherwise disposed of, alienated or
              encumbered, either voluntarily or involuntarily, other than to the
              Corporation or another stockholder of the Corporation, or as may
              expressly be permitted in writing by the Corporation or by will or
              the laws of descent and distribution, at any time prior to the
              later of: (a) the time that they become vested in accordance with
              Section 2, or (b) the earlier of the Public Offering Date or 24
              months after the date of issue;

         -    any Restricted Property in respect of the Shares may not be sold,
              assigned, transferred, pledged or otherwise disposed of, alienated
              or encumbered, either voluntarily or involuntarily, other than by
              will or the laws of descent and distribution, until the time that
              the Shares to which the Restricted Property relates become vested
              in accordance with Section 2.

         -    the Shares are subject to, and following any otherwise permitted
              transfer of the Shares, the Shares shall remain subject to and the
              transferee shall be bound by, the lock-up provisions set forth in
              Section 7 of the Terms, the share legend requirements of Section
              4.3.3 of the Plan and Section 2 above, the Corporation's
              repurchase right set forth in Section 5, the foregoing provisions
              of this Section 6, the Securityholders Agreement, and the
              arbitration provisions of Section 11.3 of the Terms; and

         -    as a condition to any otherwise permitted transfer of the Shares,
              the Corporation may require the transferee to execute a written
              agreement, in a form acceptable to the Committee, that the
              transferee acknowledges and agrees to the foregoing terms and
              restrictions imposed on the Shares.

         7.       PLAN AND OPTION AGREEMENT. The Purchaser acknowledges that all
of his/her rights are subject to, and the Purchaser agrees to be bound by, all
of the terms and conditions of the Plan, the Securityholders Agreement, and the
Option Agreement (including the Terms), each of which is incorporated herein by
this reference. If a conflict or inconsistency between the terms and conditions
of this Exercise Agreement and of the Plan or the Option Agreement shall arise,
the terms and conditions of the Plan and/or the Option Agreement shall govern.
The Purchaser acknowledges receipt of a copy of all documents referenced herein
(including the Terms and a disclosure statement) and acknowledges reading and
understanding these documents and having an opportunity to ask any questions
that he/she may have had about them. Any controversy or claim arising out of or
relating to this Exercise Agreement shall be submitted to arbitration in
accordance with Section 11.3 of the Terms, and Delaware law shall apply as
provided in Section 11.1 of the Terms.

         8.       ENTIRE AGREEMENT. This Exercise Agreement, the Option
Agreement (including the Terms), the Securityholders Agreement, the Election
Agreement, and the Plan together constitute the entire agreement and supersede
all prior understandings and agreements, written or oral, of the parties hereto
with respect to the subject matter hereof. The Plan, the Option Agreement and
this Exercise Agreement may be amended pursuant to Section 4.5 of the Plan.

                                       4
<PAGE>

Such amendment must be in writing and signed by the Corporation. The Corporation
may, however, unilaterally waive any provision hereof or of the Option Agreement
in writing to the extent such waiver does not adversely affect the interests of
the Purchaser hereunder, but no such waiver shall operate as or be construed to
be a subsequent waiver of the same provision or a waiver of any other provision
hereof.

         THE COMPANY HAS MADE AND MAKES NO REPRESENTATION REGARDING THE
ADVISABILITY OF, OR REGARDING THE TAX, FINANCIAL AND OTHER CONSEQUENCES OF, AN
ELECTION TO PURCHASE THE SHARES PRIOR TO THE TIME(S) THAT THEY HAVE BECOME
VESTED UNDER THE OPTION AGREEMENT. THE PARTICIPANT HAS AND WILL RELY UPON THE
ADVICE OF HIS/HER OWN LEGAL COUNSEL, TAX ADVISORS, AND/OR INVESTMENT ADVISORS
WITH RESPECT TO (1) THIS PURCHASE AND (2) THE ADVISABILITY OF AND PROCEDURES FOR
MAKING AN ELECTION UNDER SECTION 83(b) OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED, WITH RESPECT TO THIS PURCHASE AND THE RISKS, POTENTIAL BENEFITS, AND
CONSEQUENCES OF SUCH AN ELECTION. THE PURCHASER IS NOT RELYING ON ANY
REPRESENTATIONS OR STATEMENTS MADE BY THE COMPANY OR ANY OF ITS AGENTS. THE
PURCHASER ACKNOWLEDGES THAT, UNDER APPLICABLE LAW, IF HE OR SHE DECIDES TO MAKE
AN ELECTION UNDER SECTION 83(b) OF THE CODE WITH RESPECT TO THIS PURCHASE, SUCH
ELECTION MUST BE MADE WITHIN 30 DAYS OF THE DATE OF THIS PURCHASE.

"PURCHASER"                                ACCEPTED BY:
                                           ACCENT OPTICAL TECHNOLOGIES, INC.

---------------------------------
Signature                                  By:
                                              ----------------------------------
                                           Its:
---------------------------------              ---------------------------------
Print Name
                                           (To be completed by the corporation
                                           after the price (including applicable
---------------------------------          withholding taxes), value (if
Date                                       applicable) and receipt of funds and
                                           required Stock Poweris verified.)

                                CONSENT OF SPOUSE

         In consideration of the Corporation's execution of the Option Agreement
and granting my spouse the right to purchase stock prior to the time at which
the related stock option was vested, I hereby appoint my spouse as my
attorney-in-fact in respect to the exercise of any rights that I may have under
the Option Agreement, this Exercise Agreement, and/or the Plan, and I agree to
be bound by the provisions of the terms and provisions hereof insofar as I may
have any rights under any of such documents or with respect to any shares or
other securities issued with respect thereto.

----------------------------------                   ----------------------
Signature of Spouse                                  Date

                                       5
<PAGE>

                                  STOCK POWER*

         For value received, ____________________________ (the Purchaser
identified in the related Exercise Agreement), hereby sells, assigns and
transfers to ___________________________, an aggregate _______ shares of Common
Stock, par value $0.00001 per share, of Accent Optical Technologies, Inc., a
Delaware corporation (the "Corporation"), represented by stock certificate
number(s) ________________ to which this instrument is attached, and hereby
irrevocably constitutes and appoints the Secretary of the Corporation as his
attorney in fact and agent to transfer such shares on the books of the
Corporation with full power of substitution in the premises.

Dated:
       ----------------

                                             ---------------------------------
                                             Signature

                                             ---------------------------------
                                             Print Name

-------------
* Instructions: Please do not fill in any blanks other than the signature line.
The purpose of this assignment is to enable the Corporation to exercise its
repurchase right set forth in the related Exercise Agreement without requiring
additional signatures from the Purchaser.

                                       6
<PAGE>

                                                                      EXHIBIT  C

                        ACCENT OPTICAL TECHNOLOGIES, INC.
                              STOCK INCENTIVE PLAN

            ELECTION TO TRANSFER THE LIABILITY FOR SECONDARY NATIONAL
                 INSURANCE CONTRIBUTIONS ON STOCK OPTION GAINS

         This Election Agreement is between _______________________ (the
"OPTIONHOLDER") and Accent Optical Technologies, Inc. (the "COMPANY").

BACKGROUND

         This Election Agreement sets out additional terms which the
Optionholder must satisfy if the Optionholder is to exercise all or any portion
of the stock option that he or she has been granted by the Company under the
Accent Optical Technologies, Inc. Stock Incentive Plan (the "PLAN"). This
Election Agreement is subject to the provisions of the Plan, the applicable
Nonqualified Stock Option Agreement that evidences the option, and the Option
Exercise Agreement attached to such Nonqualified Stock Option Agreement.

SCOPE OF ELECTION

         The purpose of this Election Agreement is to transfer from the Company
to the Optionholder 100% of the liability for secondary Class 1 National
Insurance contributions ("the Employer's Contributions") under section 4(4)(a)
of the United Kingdom Social Security Contributions and Benefits Act 1992 (the
"SSCBA") which may arise in connection with the exercise of stock options
granted under the Plan, in accordance with the provisions of paragraph 3B of
Schedule 1 to the SSCBA.

         Once the Optionholder and the Company have signed this Election
Agreement, the above liability for the Employer's Contributions arising on the
exercise of stock options granted to the Optionholder under the Plan will pass
to the Optionholder. The Optionholder's election on and pursuant to this
Election Agreement will apply with respect to (1) all stock options granted to
the Optionholder by the Company under the Plan on or before the date hereof, and
(2) unless the Optionholder gives written notice to the Company to the contrary
prior to the applicable date of grant, all stock options granted to the
Optionholder by the Company under the Plan after the date hereof.

         The Optionholder further agrees to pay to the Company any PAYE
liability arising in relation to his or her stock options or the exercise
thereof to the extent permitted by law. For these purposes, "PAYE" means Income
Tax and Class 1 Primary National Insurance Contributions payable by the Company
to the United Kingdom Inland Revenue arising in relation to the gains made on
the exercise of an stock option granted under the Plan.

         The Company may recover from the Optionholder the amount of the
Employer's Contributions and PAYE liability by either: (1) requiring the
Optionholder to pay, prior to the exercise of the stock option, the amount of
such liability to the Company in cash or by certified or cashier's check payable
to the order of the Company; or (2) reducing the number of shares of stock
otherwise deliverable upon exercise of the option by the appropriate number of
shares (valued at their then "Fair Market Value," as such term is defined in the
Plan) to satisfy such liability. If the Optionholder has not arranged with the
Company, prior to the exercise of the option, to satisfy his or her obligations
as described in clause (1) above, the Company shall use

                                       1
<PAGE>

the recovery method described in clause (2) above; provided, however, that the
Company may, in its discretion, require the Optionholder to satisfy his or her
obligations as described in clause (1) above. The Company will withhold shares
as described in clause (2) above and remit the amount of the PAYE and Employer's
Contributions obligations from its own assets or remit the amount of cash
received from the Optionholder as described in clause (1) above to the Inland
Revenue in satisfaction of the Optionholder's liability, as applicable.

         This Election Agreement will cease to have continuing effect if the
Company revokes it or if the Inland Revenue withdraws its approval. In both
cases, the Company will notify the Optionholder accordingly.

ACCEPTANCE

         In making this election, the Optionholder agrees to be bound by its
terms. In addition, the Optionholder agrees to the above transfer of the
Employer's Contributions liability and also to arrangements for the recovery of
that liability. In making this election, the Optionholder further agrees to sign
any additional agreement(s) that the Company may require in order to effect the
transfer of the liability as herein described.

           The Company agrees to be bound by the terms of this election and
agrees to remit sums withheld in accordance with the foregoing to the Inland
Revenue.

"PURCHASER"                                ACCEPTED BY:
                                           ACCENT OPTICAL TECHNOLOGIES, INC.
---------------------------------
Signature                                  By:
                                              ---------------------------------
                                           Its:
---------------------------------             ---------------------------------
Print Name

                                           (To be completed by the corporation
---------------------------------          after the price (including applicable
Date                                       withholding taxes), value (if
                                           applicable) and receipt of funds is
                                           verified.)

                                       2
<PAGE>

                                                                       EXHIBIT D

                            SECURITYHOLDERS AGREEMENT

                                       1<PAGE>

                                                                    EXHIBIT 10.7

                               DATED 28 JULY 2000

                       (1) BIO-METRICS PROPERTIES LIMITED

                                       AND

                (2) ACCENT SEMICONDUCTOR TECHNOLOGIES (U.K.) LTD.

                                      LEASE
                          Relating to Premises known as
                                Haxby Road, York
                            North Yorkshire, YO31 8SD

                                Baker & McKenzie
                              100 New Bridge Street
                                     London
                                    EC4V 6JA
                               Tel: 020 7919 1000
                               Fax: 020 7919 1999
                                  Ref: MDS/JNT

<PAGE>

THIS LEASE made the 28th day of July 2000

BETWEEN

BIO-METRICS PROPERTIES LIMITED a California Company care of Haxby Road, York,
North Yorkshire YO31 8SD ("the Landlord") (1) and ACCENT SEMICONDUCTOR
TECHNOLOGIES (U.K.) LTD. care of Haxby Road aforesaid ("the Tenant") (2)

1.       DEFINITIONS AND INTERPRETATIONS

         1.1      In this Lease unless the context otherwise requires the
following expressions have the following meanings:

                  1.1.1    "Building" means all that freehold land and buildings
at Haxby Road, York, North Yorkshire YO31 8SD owned by the Landlord as
registered at HM Land Registry under Title No. NYK70708 of which the Premises
form part.

                  1.1.2    "Conduits" means all sewers drains pipes gutters
ducts water courses wires cables and any other conducting media of whatsoever
nature.

                  1.1.3    "Consent" means an approval permission authority
licence or other relevant form of approval given by the Landlord in writing
which shall not be unreasonably withheld or delayed.

                  1.1.4    "Determination" means the end of the term whenever
that occurs.

                  1.1.5    "Insured Risk" means fire storm flood lightning
explosion riot civil commotion and malicious damage burst or overflowing of
water tanks or pipes and such other risk as the Landlord may in its reasonable
discretion from time to time determine subject in respect of all such risks to
such exclusions excesses and limitations as may be imposed by the insurers.

                  1.1.6    "Interest Rate" means four per cent above the base
lending rate from time to time of Lloyds Bank plc.

                  1.1.7    "Landlord" includes the immediate revisioner of this
lease from time to time.

                  1.1.8    "Permitted Use" means use for the purpose of research
and development, light manufacturing, machine shop, service, storage, assembly
and ancillary offices.

                  1.1.9    "Planning Acts" means the Town and Country Planning
Act 1990 the Planning (Listed Buildings and Conservation Areas) Acts 1990 the
Planning (Consequential Provisions) Act 1990 the Planning (Hazardous Substances)
Act 1990 the Planning and Compensation Act 1991 and any future legislation of a
similar nature.

                  1.1.10   "Premises" means the premises described in Schedule
1.

                                                                          PAGE 1
<PAGE>

                  1.1.11   "Public Authority" means any Secretary of State and
any government department public local fire or any other authority or
institution having functions which extend to the Premises or their use and
occupations any court of law and the companies or authorities responsible for
the supply of water gas and electricity or any of them and any of their duty
authorised officers.

                  1.1.12   "Tenant" includes its successors in title.

                  1.1.13   "Term" means two years and seven months calculated
from July 28th 2000 (subject to termination as hereinafter provided).

                  1.1.14   "Transaction Agreement" means a Transaction Agreement
dated 29th June 2000 and made between Accent Semiconductor Technologies, Inc.
(1), ASTI Operating Company, Inc. (2), Bio-Rad Laboratories, Inc. (3), Sandia
Systems, Inc. (4), Bio-Rad Micromeasurements Limited (5) and Bio-Rad
Microscience Limited (6).

                  1.1.15   "Utilities" means water soil steam air electricity
gas radio telephone telecommunications and other services and supplies of
whatsoever nature.

2.       DEMISE AND RENTS

         In consideration of the rents and covenants on the part of the Tenant
hereinafter reserved and contained the Landlord HEREBY DEMISES unto the Tenant
together with the facilities and services described in the Second Schedule
hereto the Premises as they are at the date hereof EXCEPT AND RESERVED as
mentioned in the Third Schedule hereto TO HOLD the same SUBJECT to all rights
easements quasi-easements and privileges to which the Premises are or may be
subject.

         The Tenant shall also have, as appurtenant to the Premises,
non-exclusive rights to certain common areas included in the Building, including
parking spaces, loading and unloading areas, trash areas, walkways and driveways
PROVIDED THAT these non-exclusive rights do not interfere with any rights of any
other tenants, occupiers, invitees of the Landlord to the common areas included
in Building, including parking areas, loading and unloading areas, trash areas,
walkways and driveways.

         YIELDING AND PAYING unto the Landlord

         FIRSTLY from 28th July 2000 until 28th July 2001 the yearly rent of
(pound)10,000 per calendar month and thereafter (pound)11,000 per calendar month
until the expiry of the Term such rent to be paid by monthly payments in advance
on the first day of each month, the first payment of (pound)10,000 pro-rated as
of the date of the closing of the Transaction Agreement to be made on the date
hereof.

3.       THE TENANT COVENANTS

         The Tenant covenants with the Landlord:

                                                                          PAGE 2
<PAGE>

         3.1      TO PAY RENT

         To pay the rent reserved by this Lease on the days or in the manner
provided without deduction or set-off.

         3.1      TO PAY VAT

         To pay in addition to the rents and other sums due under this Lease all
proper Value Added Tax (or any tax of similar nature which may be substituted or
levied in addition to it) which now or may become lawfully payable on the supply
by the Landlord to the Tenant under this Lease of the interest created by it and
of any other supplies whether of goods or services on the basis that the rents
and other sums or the value of the said supplies.

         3.3      STATE OF REPAIR

         At all times during the continuance of the Term to repair and keep the
Premises in as good repair and condition as at the date hereof as evidenced by
the photographic schedule of condition annexed hereto (damage by the Insured
Risks excepted save to the extent that the insurance monies shall be withheld by
reason of any act neglect or default of the Tenant or any person under its
control) except for damage caused by inherent or latent defects.

                  3.3.1    To permit the Landlord and his agents at all
reasonable times during the Term with or without workmen and giving reasonable
notice of not less than two (2) working days (except in emergency) to the Tenant
to enter upon the Premises for the purposes of ascertaining that the covenants
and conditions herein contained have been duly observed and performed and in
particular to view the state of repair and condition thereof and to exercise the
rights hereinafter excepted and reserved to the Landlord and the Landlord shall
make good any damage thereby caused to the Premises forthwith at the expense of
the Tenant and the Landlord shall cause as little inconvenience as possible to
the Premises and make good any damage caused by the Landlord in receiving its
rights under this Clause 3.3.1.

                  3.3.2    To repair and make good all defects and wants of
reparation of which notice in writing shall be given to the Tenant by the
Landlord and for which the Tenant is liable hereunder within two calendar months
after the giving of such notice or sooner if requisite and if the Tenant fails
to comply with any such notice it shall be lawful for the Landlord (without
prejudice the right of re-entry hereinafter contained) to enter upon the
Premises to make good the same at the reasonable cost of the Tenant which
reasonable cost shall be repaid by the Tenant to the Landlord on demand TOGETHER
WITH all Solicitors and Surveyors reasonable charges and other expenses which
may be reasonably incurred by the Landlord in connection therewith.

         3.4      NOT TO INVALIDATE INSURANCES ETC. AND INSURANCE GENERALLY OF
                  THE PREMISES OF WHICH THE TENANT IS AWARE

                  3.4.1    Not to bring or permit to be brought into the
Premises or to place or store or permit to be placed or stored or to remain in
or about the Premises any article or thing in consequence of which the Landlord
would or might so prevented from insuring the Building at the usual rate of
premiums for property with a use the same as the Permitted Use or whereby an
insurance effected in respect of the Building would or might be vitiated or
prejudiced.

                                                                          PAGE 3
<PAGE>

                  3.4.2    Not to effect any insurance against any of the
Insured Risk of which Tenant is aware in respect of or relating to the Premises
or Building.

                  3.4.3    To maintain at all times tenant's and occupiers
liability insurance and insurance of the Tenant's property at the Premises.

         3.5      OVERLOADING

         Not without Consent to place or keep or permit to be placed or kept in
the Premises any heavy articles in such position or in such quantity or weight
or otherwise in such manner howsoever as to overload or cause damage to the
Premises or the Building. No such consent will be necessary to the extent any
heavy articles are placed or kept in a similar manner with past practices.

         3.6      USER

         Not to do anything in or out of the Premises which may be or become or
cause a nuisance and not to use the Premises other than for the Permitted Use,
without the Landlord's prior written consent, which shall not be unreasonably
withheld or delayed PROVIDED THAT the Tenant shall pay to the Landlord any
additional costs as a result of the increase in the consumption of supplying
services to the Premises incurred by the Landlord resulting from the change of
use of the Premises.

         3.7      ALTERATIONS

         Not to make any external or structural alterations or additions to the
Premises and not to materially cut alter maim or injure the Premises nor make
any material internal non-structural alterations or additions to the Premises
except with a Consent in accordance with drawings or specifications previous
submitted to and approved in writing by the Landlord's Surveyors (such Consent
not to be unreasonably withheld or delayed).

         3.8      ENCROACHMENT AND EASEMENT

         Not by building or otherwise stop up or darken encroachment any window
or light in the Premises nor permit any new wayleave easement right privilege or
encroachment to be made or acquired into against or upon the Premises and in
case any such easement right privilege or encroachment shall be made or
attempted to be made to give immediate notice thereof to the Landlord as may be
reasonably required or deemed proper for preventing any such encroachment or the
acquisition of any such easement right privilege or encroachment.

         3.9      SIGNS

         Not at any time during the Term to affix or exhibit or permit to be
affixed or exhibited in or upon any part of the Premises or the Building any
sign which can be seen from the outside of the Premises without first obtaining
Consent (such Consent not be unreasonably withheld) but for the avoidance of
doubt, the Landlord reserves the right to display its signs and signs of any
future tenant or occupiers for the time being of the Building. The Landlord
hereby consents to the Tenant's reasonable signage to be affixed to the
Premises.

                                                                          PAGE 4
<PAGE>

         3.10     ALIENATION

                  3.10.1 Not to assign underlet or part with possession or
occupation or share the possession of the Premises or any part thereof save that
the Tenant may with the prior written consent of the Landlord assign the whole
or underlet the whole or any part of the Premises provided always that no such
consent shall be required if the assignee or under-tenant is the associate or
connected company or affiliate of the holding or a subsidiary company of the
Tenant or in the case of a merger or consolidation of the Tenant or upon the
sale of all the assets of the Tenant.

                  3.10.2 If the Landlord so reasonably requires as a condition
of granting consent to assign the proposed assignee shall furnish the Landlord
with a guarantee of payment of the rents reserved and performance of all the
covenants on the part of the Tenant in this Lease from a guarantor of financial
standing reasonably acceptable to the Landlord.

                  3.10.3 The Landlord is entitled to give consent to an
assignment subject to the condition that before the Tenant assigns this Lease
the Tenant enters into an Agreement under which he guarantees the performance of
the proposed assignee of all the covenants on the part of the Tenant contained
in this Lease and whereby the Tenant agrees that in the event this Lease is
disclaimed and on being so promptly requested by the Landlord it will accept the
grant of a new tenancy of the Premises on the same terms and conditions as this
Lease at the date of the disclaimer and for a term expiring on the term
expiration date of this Lease.

                  3.10.4 The Landlord shall not unreasonably withhold or delay
consent to an application by the Tenant to underlet the whole or part of the
Premises where all of the following conditions are satisfied:

                         3.10.4.1 the prospective undertenant covenants with the
         Landlord in a form reasonably required by the Landlord that it will
         observe and perform the Tenant's covenants and obligations in such
         underlease;

                         3.10.4.2 no fine or premium is taken by the Tenant for
         the grant of the underlease;

                         3.10.4.3 the underlease contains the same provisions as
         to assignment and underletting as are contained in this Lease subject
         to an additional condition that the consent of the Landlord under this
         Lease shall have been obtained prior to any assignment or underletting
         (such consent not to be unreasonably withheld or delayed);

                         3.10.4.4 any such underlease shall be excluded from the
         operation of Sections 24-28 of the Landlord and Tenant Act 1954 by
         Court Order granted prior to the under-tenant of the underlet premises.

                  3.10.5 Within 14 days after any dealing with or transmission
or devolution of the Premises or any interest in them shall give to the Landlord
notice in writing specifying the basic particulars of the matters in question
and at the same time supply a certified copy of any instrument making or
evidencing it and pay a registration fee of (pound)20.

                                                                          PAGE 5
<PAGE>

                  3.10.6 From time to time on demand during the Term the
Tenant shall provide the Landlord with particulars of all derivative interests
of or in the Premises and copies of any relevant documents and the identity of
the occupiers of the Premises.

         3.11     WASTE AND RUBBISH

         At all times during the Term to keep the Premises in a clean and tidy
condition and clear of all rubbish.

         3.12     LANDLORD'S COSTS

                  3.12.1 To pay all reasonable costs and expenses (including
Solicitor's costs and Surveyor's fees) incurred by the Landlord incidental to
the preparation and service of any notice under Section 146 of the Law of
Property Act 1925 and/or incurred in or contemplation of proceedings under
Section 146 and/or 147 of that Act or any statutory modification or re-enactment
thereof notwithstanding in any such case that forfeiture may be avoided
otherwise than by relief granted by the Court.

                  3.12.2 To pay all reasonable costs and expenses (including
Solicitor's costs and Surveyor's fees) incurred by the Landlord incidental to
the preparation and service of any Notice and/or Schedule relating to a Schedule
of Dilapidation and whether by the Landlord and whether or not the same is
served during or within two months of the expiration or sooner determination of
the Term (howsoever the same may be determined) but relating in all cases only
to dilapidations which accrued prior to the expiration or sooner determination
of the Term.

                  3.12.3 To bear and pay all reasonable costs expenses
(including Solicitors and other legal costs fees of managing agents and
Surveyors and other professional fees) incurred by or imposed or charged upon
the Landlord or for which the Landlord shall be held responsible (whether as
landlord or owner or occupier of the Premises) in respect of or incidental to or
arising out of any notice requirement of any local or competent authority or
otherwise and relating to the Premises and whether or not made under or in
pursuant of any Act of Parliament or any regulation as aforesaid but only
insofar as the same arise from the Tenant's use of the Premises for the
operation of its business during the Term and for the avoidance of doubt the
Tenant shall not be responsible for notice requirements relating to the Premises
which apply to the Tenant's fundamental occupation of the Premises.

                  3.12.4 To pay to the Landlord the costs of any material
increases in the consumption of the services to the Premises from the current
use and consumption of the services to the Premises.

         3.13     STATUTORY REQUIREMENTS

         To execute all works as are or may under or in pursuance of any Act of
Parliament already or hereafter to be passed be directed or required to be done
or executed at any time during the Term upon or in respect of the Premises or
the Tenant's user thereof whether by the owner and/or the Landlord and/or the
Tenant thereof and at all times during the Term to conform in all respects with
the provisions of any regulations under any general or local Act of Parliament
and to comply with any notices which be served by any competent authority
PROVIDED THAT

                                                                          PAGE 6
<PAGE>

the Tenant shall be entitled to terminate the Lease on not less than one month's
notice on having learned of any Act of Parliament requiring the Tenant to
execute such works as above or having learned of the Tenant's obligation to
conform or comply with the provisions of any regulations or notices as above and
for the avoidance of doubt the Tenant shall not be obliged to comply with the
notices or regulations or execute any works as above if the Tenant elects to
terminate the Lease under the provisions of this Clause 3.13.

                  1.13.1 The Tenant shall not do or permit to be done on the
Premises or any part thereof any act or thing whereby the Landlord may become
liable to pay any penalty imposed or to bear the whole or any part of any
expenses incurred under such direction requirement Act or Regulation as are
aforesaid.

         3.14     PLANNING

                  3.14.1 In relation to the Planning Acts:

                  at all times during the Term to comply in all respects with
the Planning Acts.

                  3.14.2   during the Term to obtain all permissions licences
consents and approvals as may be required for the carrying out by the Tenant of
any operation on the Premises and the Tenant shall not make any application for
planning permission or give any notice to any Authority of an intention to
commence or to carry out any development or any step related thereto without the
previous written consent of the Landlord.

                  3.14.3 Not to implement any planning permission licence
consent or approval obtained by the Tenant without a Consent.

                  3.14.4 Within 10 days after receiving notice of the same to
give full particulars to the Landlord of any notice of proposals for a notice or
order of proposal for an order made given or issued to the Tenant by any
Authority under or by virtue of the Planning Acts and if so required by the
Landlord to produce such notice or order for proposal to the Landlord.

         3.15     NOTICES

            Upon receipt of any notice order or requisition or direction
adversely affecting the Landlord's interest in the Premises the Tenant shall
forthwith at its own expense deliver full particulars thereof to the Landlord.

         3.16     COMPLY WITH FIRE REGULATIONS

         To keep any fire fighting and extinguishing apparatus installed in
compliance with any legal obligations open to inspection and maintained to the
reasonable satisfaction of the Landlord and also not to obstruct the access to
or means of working such apparatus.

         3.17     PROTECTION OF CONDUITS

         Not to stop up or obstruct in any way whatever the Conduits.

                                                                          PAGE 7
<PAGE>

         3.18     INDEMNITY

         Except to the extent losses or damage are caused by the negligence or
wilful misconduct of the Landlord or Landlord's agents employees or contractors
to indemnify the Landlord in respect of:

                  3.18.1 All actions proceedings costs claims and demands which
are made by any adjoining owner tenant occupier or any other person whatsoever
or and competent Authority which are incurred by reason of:

                  (a)      Any execution of any alterations or additions to the
                           Premises carried out by the Tenant.

                  (b)      Any stoppage caused by Tenant of the drains used in
                           common with the owner or occupier of adjoining or
                           neighbouring property.

                  3.18.2 All liability which may be incurred by the Landlord in
respect of any of the matters referred to in paragraph (a) of this clause.

                  3.18.3 Any claims proceedings or demands and the cost and
expenses incurred therein which may be brought against the Landlord by any
servants workpeople agents or visitors of the Tenant or any undertenant in
respect of any accident loss or damage whatsoever to person or property
howsoever caused and incurring in or upon the Premises and without prejudice to
the generality of this sub-clause to indemnify the Landlord against liability
which the Landlord may incur for nuisance or negligence or breach of statutory
duty under the Defective Proposals Act 1972 or any other similar enactment for
the time being enforced or on account of the condition of the Premises or any
part thereof.

         3.19     YIELD UP

         At the Determination quietly to yield up to the Landlord the Premises
in such repair and condition as shall be in accordance with the covenants on the
part of the Tenant herein contained and the Tenant shall remove its fixtures and
fittings and make good all damage caused to the Premises by the removal of such
fixtures and fittings.

         3.20     INTEREST

         Without prejudice to any other right remedy or power herein contained
or otherwise available to the Landlord if any rents reserved by this Lease
(whether formally demanded or not) or any other sum of money payable to the
Landlord by the Tenant under this Lease shall remain unpaid for more than 7 days
after the date when payment was due to pay interest thereon at the Interest Rate
from and including the date on which payment was due to the date of payment to
the Landlord (both before and after any judgment).

         3.21     SECURITY

         To maintain appropriate security (including security guards) reasonably
acceptable to the Landlord at all times for the Building.

                                                                          PAGE 8
<PAGE>

         3.22     ENVIRONMENTAL CLAIMS

         The Tenant shall indemnify defend and hold harmless the Landlord from
and against any Environmental Claim (as defined in the Transaction Agreement) by
any third party or Governmental Entity (as so defined) and any Environmental
Loss (as so defined) arising or resulting from any Environmental Claim by a
third party or Governmental Entity to the extent that such Environmental Claim
or Environmental Loss relates to or arises from directly or indirectly (i) any
Hazardous Substance Activity (as so defined) resulting from Tenant at the
Premises which occurs or commences after the commencement of the Term or (ii)
any violation of or non compliance with Environmental Laws by the Tenant based
on or arising from events facts or circumstances relating to the Premises that
occur or commence after the commencement of the Term.

4.       LANDLORDS COVENANTS

         THE Landlord HEREBY COVENANTS with the Tenant:

         4.1      QUIET ENJOYMENT

         That the Tenant shall and may peacably hold and enjoy the Premises
during the said term without any lawful interruption by the Landlord or any
person rightfully claiming through under or in trust for it.

         4.2      INSURANCE

         That the Landlord shall insure and (unless the insurance so effected
shall become void or voidable through or by reason of any act neglect or default
of the Tenant or the Tenant's servants or agents) to keep insured the Building
(but excluding tenant's or trade fixtures) against the Insured Risks as
hereinbefore provided in an insurance office or with underwriters of repute in
the full rebuilding value thereof and for three years loss of rent and shall use
all reasonable endeavours to note the Tenant's interest on the policy and to
produce to the Tenant on request a copy or details of the policy of such
insurance and the receipt for the current premium and in case of destruction or
damage by any of the Insured Risks (unless payment of any moneys payable under
any policy of insurance shall be refused either in whole or in part by reason of
any act neglect or default of the Tenant or the Tenant's servants agents
licensees or invitees) to apply all policy moneys received under or by virtue of
any such insurance as aforesaid in rebuilding or reinstating the Building with
all reasonable expedition (subject to all necessary permissions or consents
beings obtained).

         4.3      ENVIRONMENTAL INDEMNITY

         The Landlord hereby agrees to indemnify defend and hold harmless the
Tenant from and against any Environmental Claim (as defined in the Transaction
Agreement) by any third party or Governmental Entity (as defined in the
Transaction Agreement) and any Environmental Loss (as so defined) arising or
resulting from any Environmental Claim by a third party or Governmental Entity
to the extent that such Environmental Claim or Environmental Loss relates to or
arises from directly or indirectly (i) any Hazardous Substance Activity (as so
defined) at the Building which occurred was in existence or commenced prior to
the commencement of the

                                                                          PAGE 9
<PAGE>

Term or (ii) any violation or non compliance with the Environmental Laws based
on or arising from events facts or circumstances relating to the Building that
occurred were in existence or commenced prior to the commencement of the Term or
(iii) the use by the Landlord of the Building excluding the Premises.

         4.4 To provide at all times at Landlord's cost, the Facilities and
Services on the Second Schedule hereto unless prevented by industrial disputes
shortages or supplies inclement weather or other causes beyond the control of
the Landlord.

         4.5 To be responsible for payment of all rates taxes charges
impositions and other outgoings of a routine or novel nature assessed charged or
imposed upon the Building or the Premises or upon the owner or occupier.

         4.6 The Landlord hereby agrees as soon as is reasonably practicable to
repair the ventilation systems in the Premises so as to ensure they comply with
any statutory regulations and to repair the defective flooring in the Premises
up to a maximum cost of (pound)27,000 for such flooring repair.

5.       PROVISOS

PROVIDED ALWAYS AND IT IS HEREBY AGREED AND DECLARED AS FOLLOWS:

         5.1      FORFEITURE

         Notwithstanding and without prejudice to any other remedies and powers
herein contained or otherwise available to the Landlord if the rent hereby
reserved or any part thereof shall be unpaid for twenty-one days after becoming
payable (whether formally demanded or not) or if any covenant on the Tenant's
part or condition herein contained shall not be performed or observed within
thirty days of notice from Landlord (or if Tenant cannot reasonably remedy the
default within such period, the Tenant fails to commence promptly to remedy
same) or if the Tenant for the time being hereunder being a Company shall enter
into liquidation whether compulsory or voluntary (save for the purpose of
reconstruction or amalgamation) or pass a resolution for winding up (save as
aforesaid) or suffer a Receiver to be appointed or being an individual or being
more than one individual any of them shall have a Receiving Order made against
him or become bankrupt or if the Tenant or if there shall be more than one
Tenant any of them shall enter into composition with their or his creditors or
suffer any distress or execution to be levied on their or his goods then and in
any such case it shall be lawful for the Landlord at anytime thereafter to
re-enter upon the Premises or any part thereof in the name of the whole and
thereupon this demise shall absolutely determine but without prejudice to any
right of action or remedy of the Landlord in respect of any breach
non-observance or non-performance of any of the Tenant's covenants or any
condition herein contained.

         5.2      NOTICES

         Any demand or notice requiring to be made given to or served on the
Tenant hereunder shall be duly and validly made given or served if sent by the
Landlord or its agents through the post by prepaid letter addressed to the
Tenant (and if there shall be more than one of them then any one of them) at its
registered office or its last known address or at the Premises. Any notice

                                                                         PAGE 10
<PAGE>

required to be given to the Landlord shall be well and sufficiently given if
sent through the post by pre-paid letter addressed to the Landlord at its
registered office. Any demand or notice sent by post shall be treated as having
been made given or served forty-eight hours after posting.

         5.3      CESSER OF RENT

         That in the event of the Premises or any part thereof at any time
during the term being damaged or destroyed by any Insured Risk so as to prevent
access to or to be unfit for occupation and use then and so long as the policy
or policies of insurance for the time being in force shall not have been
vitiated or payment of the policy moneys withheld or refused in whole or in part
in consequence of any act neglect or default of the Tenant and the servants or
agents licensees or invitees of the Tenant the rent hereby reserved or a fair
proportion thereof according to the nature and extent of the damages sustained
shall be suspended until the Premises shall again be rendered fit for habitation
and uses contemplated by this Lease and in the case of difference touching this
proviso the same shall be referred to the award of a single arbitrator in case
the parties can agree upon one and otherwise to two arbitrators one to be
appointed by each party and in either case in accordance with the provisions of
the Arbitration Act 1950 or any statutory modification thereof for the time
being in force. If damage or destruction prevents the use of services or use of
the Premises, the Tenant may determine the Lease by serving not less than three
(3) months' prior notice.

         5.4      TERMINATION

         5.4      The Tenant may determine the term hereby granted on the 28th
day of 2001 or at any time thereafter by serving not less than 3 months prior
written notice on the Landlord and following service of such notice this Lease
shall determine on the expiry of such notice but without prejudice to the rights
of either party against the other in respect of any prior breaches of the
provisions of this Lease.

6.       LANDLORD AND TENANT ACT OF 1954

         Having been authorised to do so by an Order of the Mayor and City of
London County Court Case Number MY082382 made on the 26 day of July 2000 under
the provisions of Section 38(4) of the Landlord and Tenant Act 1954 the Landlord
and Tenant hereby agree that the provisions of the Landlord and Tenant Act 1954
Sections 24-28 (inclusive) shall be excluded in relation to the tenancy created
by this Lease.

7.       LANDLORD REPRESENTATIONS

         All capitalised terms used herein without definition shall have the
respective meanings ascribed to them in the Transaction Agreement.

         Landlord represents and warrants as at the date hereof:

         7.1      Landlord has all necessary corporate power and authority to
execute, deliver and perform this Lease. Landlord is duly organised, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation and has all necessary corporate power and authority to own its
properties and assets and to carry on its business as currently conducted by it.
The

                                                                         PAGE 11
<PAGE>

Landlord is duly qualified or licensed to do business as a foreign corporation
in good standing in all jurisdictions in which the character or the location of
the property owned or leased by it or the nature of the business conducted by it
requires licensing or qualification except where the failure to be so qualified
or licensed is not and will not have a Material Adverse Effect. The execution,
delivery and performance of this Lease has been duly and validly authorised by
the Board of Directors of the Landlord and by all other necessary corporate
action on the part of the Landlord. This Lease constitutes the legally valid and
binding obligation of the Landlord, enforceable against the Landlord in
accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganisation, moratorium and other similar laws and
equitable principles relating to or limiting creditors' rights generally. The
execution and delivery of this Lease will not (w) violate, or constitute a
breach or default (whether upon lapse of time and/or the occurrence of any act
or event or otherwise) under the charter documents or by-laws of Landlord or any
Contract of Landlord, (x) have an adverse effect on the Building being
transferred hereby, (y) result in the imposition of any Encumbrance (other than
Encumbrances created by Tenant against the Building or (z) violate any Law to
which Landlord is subject, except for any such violations, breaches defaults,
adverse effects or Encumbrances which, individually or in the aggregate, would
not have or could not reasonably be expected to have a Material Adverse Effect.
The execution and delivery of this Lease, the performance of this Lease and the
consummation of the transactions contemplated hereby will not require any
material filing or registration with, or the issuance of any material Permit by,
and other third party or Governmental Entity.

         7.2      Landlord has good and marketable title to the Building, free
of Encumbrances other than Permitted Encumbrances.

         7.3      There is no Order or Action pending, or, to the knowledge of
the Landlord, threatened against or affecting Landlord, the Division, any of the
Division Businesses or any of its properties or assets that individually or when
aggregated with one or more other Orders or Actions has or could reasonably be
expected to have a Material Adverse Effect.

         7.4      The Landlord or one of the Seller Parties holds all material
Permits and material Approvals that are required by any Governmental Entity or
other Person to permit Landlord or the applicable Seller Party to conduct the
Division Business located at the Property as to as it is now operated, and
except as set forth in Section 4.10 of the Disclosures Schedule, all such
Permits and Approvals will remain in full force and effect for the benefit of
Tenant upon the consummation of the transactions contemplated by this Lease,
except for those Permits and Approval identified in Section 4.10 of the
Disclosure Schedule as not transferable to the Tenant or which are Excluded
Assets.

         7.5      Landlord is organised and has utilised the Building in
compliance with applicable Laws, except to the extent that failure to comply
with such Laws has not had and could not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.

         7.6      Except as set forth in Section 4.15 of the Disclosure
Schedule, no agent, broker, finder or investment or commercial banker, or other
Person or firm engaged by or acting on behalf of Landlord in connection with the
negotiation, execution or performance of this Lease, is or will be entitled to
any broker's or finder's or similar fees or other commissions as a result of

                                                                         PAGE 12
<PAGE>

this Lease. Tenant and its Affiliates will not have any liability with respect
to any such fees or commissions to any such agent, broker, finder, investment or
commercial banker.

         7.7      To Landlord's knowledge except as disclosed in Section 4.19 of
the Disclosure Schedule (i) any Hazardous Substances used, stored, transported,
handled or dealt with in connection with the business of Landlord or any of its
Affiliates (including any of the Division Businesses) has been and is being
handled or dealt with in material compliance with the applicable Environmental
Laws and there has not been any generation, use, transportation, treatment,
storage, Release or disposal of any Hazardous Substances or other Hazardous
Substance Activity at the Building which has created or could reasonably be
expected to create any material liability under any Environmental Laws; (ii)
Landlord and its Affiliates have used and operated the Building in material
compliance with applicable Environmental Laws and there has not been any use or
operation of the Building which has created or could reasonably be expected to
create any material liability under any Environmental Laws; (iii) the Building
complies in all material respects with applicable Environmental Laws (iv)
neither Landlord nor any of its Affiliates has filed any notice or report of a
Release of any Hazardous Substances on, under, adjacent to or about the
Building, and no Release has occurred at or affecting the Building which was
required pursuant to any Environmental Law to be reported to any Governmental
Entity; (v) neither Landlord nor any of its Affiliates has received (a) any
notice or claim to the effect that is or may be liable to any person or
Governmental Entity in connection with any Hazardous Substances or Hazardous
Substances Activity in, on, or under the Building or (b) any request for
information with respect to the Building under any Environmental Law, and the
building is not the subject of any governmental investigation by any
Governmental Entity in connection with any Hazardous substances or of any
judicial, civil, criminal or administrative proceeding alleging the violation of
or liability under any Environmental Laws.

         7.8      No order has been made, petition presented or resolution
passed for the winding up of Landlord and no meeting has been convened for the
purpose of winding up of Landlord. The Landlord has not been a party to any
transaction with could be avoided in a winding up. No steps have been taken for
the appointment of an administrator or receiver (including an administrative
receiver) in respect of Landlord and/or of all or any part of Landlord's
interest in the Lease. Landlord has not made or proposed any arrangement or
composition with its creditors or any class of its creditors. Landlord is not
insolvent, is not unable to pay its debts within the meaning of the insolvency
legislation applicable to Landlord and has not stopped paying its debts as they
fall due.

         AS WITNESS the hands of the parties the day and year first before
written.

                                                                         PAGE 13
<PAGE>

                      THE FIRST SCHEDULE BEFORE REFERRED TO

                                 (THE PREMISES)

         All that part of the Landlord's freehold building at Haxby Road, York,
North Yorkshire shown edged red on the plan annexed hereto and comprising 40,000
square feet or thereabouts.

                     THE SECOND SCHEDULE BEFORE REFERRED TO

                            (FACILITIES AND SERVICES)

         Facilities and Services to be enjoyed with the Premises PROVIDED THAT
they do not interfere with any right of any other tenant or other occupiers for
the time being of the Building

         1.       Rights of services on foot and with vehicles to and from the
                  nearest adopted highway.

         2.       Right to park vehicles within the boundary of the Building.

         3.       Rights to the Loading Bay.

         4.       Rights to toilets for men and women with hot and cold water in
                  Premises and to kitchen facilities in Premises, if any.

         5.       Rights of water, electricity, gas, lighting, heating,
                  air-conditioning, telecommunications and any other services
                  benefiting the building as at the date hereof.

                               THE THIRD SCHEDULE

                           EXCEPTIONS AND RESERVATIONS

         The following rights and easements are excepted and reserved out of the
Premises to the Landlord and all other persons authorised by the Landlord or
having the like rights and easements:

         1.       The right at all reasonable times and upon reasonable prior
written notice of not less than two (2) working days except in cases of
emergency to enter the Premises in order to:

                  (a)      inspect cleanse maintain repair connect remove lay
         renew relay replace with others alter or execute any works whatever to
         or in connection with the Conduits and any other services;

                                                                         PAGE 14
<PAGE>

                  (b)      execute repairs decorations alterations and any other
         works to the Building or to do anything whatsoever which the Landlord
         may do under this Lease or as the Landlord may reasonably require in
         connection with the use of the remainder of the Building.

PROVIDED THAT the Landlord or the person exercising the foregoing rights shall
cause as little inconvenience as possible to the Premises and shall make good
without delay any damage thereby caused to the Premises to the reasonable
satisfaction of the Tenant.

         2.       Such rights of access and egress through the Premises as the
Landlord may reasonably require at all reasonable times and upon reasonable
prior written notice of not less than two (2) working days except in case of
emergency for access and egress and use of such part of the Building as is not
included within the Premises.

EXECUTED AS A DEED by                      )

BIO-METRICS PROPERTIES                     )

LIMITED acting by its duly                 )

authorised officers                        )

         Director

         Director/Secretary /s/

EXECUTED AS A DEED by                      )

ACCENT SEMICONDUCTOR                       )

TECHNOLOGIES (U.K.) LTD.                   )

acting by its duly authorised officers     )

         /s/

         Director

         Director/Secretary

                                                                         PAGE 15
<PAGE>

                                  BIO-RAD YORK

                                    SITEPLAN

                         (LEASED PREMISES HATCH-MARKED)

[siteplan inserted here]

                                                                         PAGE 16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]