Document:

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                                                                   Exhibit 10.53

                         AGREEMENT FOR PURCHASE AND SALE
                                OF REAL PROPERTY

     THIS AGREEMENT (this "Agreement") is dated as of the Effective Date
(hereinafter defined), by and between Steve Farnie ("Buyer") and Marketing
Specialists Sales Company, a Texas corporation (f.k.a. Marketing Specialists
Companies, Inc.) ("Seller").

     FOR AND IN CONSIDERATION OF THE MUTUAL PROMISES SET FORTH HEREIN AND OTHER
GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY
ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS:

SECTION 1.     TERMS AND DEFINITIONS: The terms listed below shall have the
respective meaning given to them as set forth adjacent to each term.

     (a)  "PROPERTY" shall mean that real property commonly known as 8501 Tower
          Point Road, Charlotte, Mecklenburg County, North Carolina, being more
          particularly described on EXHIBIT A attached hereto and incorporated
          herewith by reference (the "Real Property"), together with all
          buildings and improvements thereon and all fixtures and appurtenances
          thereto (the "Improvements") (the Real Property and the Improvements
          are collectively referred to herein as the "Property").

     (b)  "PURCHASE PRICE" shall mean the sum of TWO MILLION SIX HUNDRED
          THOUSAND AND NO/100 DOLLARS ($2,600,000.00), payable on the following
          terms:

          (i)  "EARNEST MONEY": Within two (2) days after the Effective Date,
               Buyer shall deliver to _________________________________
               Attention: _____________, phone: ________________, fax:
               ______________ ("Title Insurer") (i) a nonrefundable wire
               transfer or cashier's or certified check in the sum of Fifty
               Dollars ($50.00) payable to the order of Seller representing the
               independent consideration for Seller's execution of this
               Agreement and agreement to provide Buyer with the Examination
               Period (hereafter defined) (which check or the proceeds of which
               wire transfer shall thereafter be delivered by Title Insurer to
               Seller and shall not be a part of the Earnest Money), and (ii) a
               wire transfer or cashier's or certified check in the sum of FIFTY
               THOUSAND AND NO/100 DOLLARS ($50,000.00). The Earnest Money shall
               be invested by Title Insurer in a commercial bank or banks
               acceptable to Seller and Buyer at money market rates, or in such
               other investments as shall be approved in writing by Seller and
               Buyer. The Earnest Money shall be held and disbursed by Title
               Insurer in strict accordance with the terms and provisions of
               this Agreement. All accrued interest or other earnings on the
               Earnest Money shall become part of the Earnest Money. The Earnest
               Money shall be returned to Buyer if Buyer, prior to the end of
               the Examination Period, notifies Seller in writing, pursuant to
               SECTION 7 hereof, that Buyer is electing to terminate this
               Agreement. The Earnest Money shall be either

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               (a) applied at the Closing against the Purchase Price, (b)
               returned to Buyer pursuant hereto, or (c) paid to Seller pursuant
               hereto.

          (ii) "CASH" at Closing in the amount of TWO MILLION FIVE HUNDRED FIFTY
               THOUSAND AND NO/100 DOLLARS ($2,550,000.00), the balance of the
               Purchase Price, subject to the adjustments and prorations
               described in SECTION 2 of this Agreement.

     (c)  "CLOSING" shall occur on the date that is fifteen (15) days after the
          expiration of the Examination Period (the "Closing Date"). Time is of
          the essence with respect to the Closing Date.

     (d)  "BUYER'S BROKER" shall mean The Staubach Company who is acting on
          behalf of both Seller and Buyer.

          "SELLER'S BROKER" shall mean The Staubach Company who is the listing
          agent for the Property and is acting on behalf of both Seller and
          Buyer.

     (e)  "EXAMINATION PERIOD" shall mean the period beginning on the Effective
          Date and expiring on the date that is fifteen (15) calendar days
          thereafter.

     (f)  "INTENDED USE" shall mean the use of the Property for the following
          reasons: general office use in accordance with the zoning requirements
          of the Property, which is I-1 Industrial.

     (g)  "SELLER'S NOTICE ADDRESS" shall be as follows:

          (i)  Mr. Gage Hunt
               Marketing Specialist Companies, Inc.
               16251 Dallas Parkway, 8th Floor
               Dallas, Texas 75248
               (972)687-5863 Office Telephone

          With a copy to:

          (ii) Mr. George Johnson
               The Staubach Company
               121 W. Trade Street, Suite 2800
               Charlotte, North Carolina 28202
               (704)341-1171 Office Telephone

     (h)  "BUYER'S NOTICE ADDRESS" shall be as follows:

          (i)  Steve Farnie
               9110 Hood Road
               Charlotte, North Carolina  28215
               (704) 563-0431 Office Telephone

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          With a copy to:

          (ii) Ms. Patricia W. Nystrom
               Harkey, Lambeth, Nystrom, Fiorella & Morrison, L.L.P.
               Morehead Corporate Plaza, Suite 300
               1043 East Morehead Street
               Charlotte, North Carolina  28204-2800

SECTION 2.     PRORATION OF EXPENSES AND PAYMENT OF COSTS: All revenues and
expenses with respect to the Property and which are applicable to the period of
time before and after the Closing Date, determined in accordance with sound
accounting principles consistently applied, shall be prorated between Seller and
Buyer as provided herein. Except as otherwise provided to the contrary in this
Agreement, Seller shall be entitled to all revenue and shall be responsible for
all expenses for the period of time up to but not including the Closing Date,
and Buyer shall be entitled to all revenue and shall be responsible for all
expenses for the period of time from, after and including the Closing Date. Such
prorations shall be shown on the closing statement(s) executed by the parties
hereto and shall increase or decrease (as the case may be) the cash amount
payable by Buyer at Closing pursuant to this Agreement. Seller and Buyer agree
that all property taxes, assessments and utilities shall be prorated as of the
date of Closing. Seller shall pay for the deed preparation, deed stamps and
other conveyance fees or taxes, Seller's attorneys' fees, Seller's Broker Fee
(hereinafter defined), no more than a 2% Buyer's Brokers Fee (hereafter
defined), and fifty percent (50%) of any escrow and closing charges and fees by
Title Insurer. Buyer shall pay recording costs, costs of any title search, the
premium for title insurance, any portion of the Buyer's Broker Fee not paid by
Seller, the cost of the Survey, Buyer's attorneys' fees, and fifty percent (50%)
of any escrow and closing charges and fees by Title Insurer. Notwithstanding
anything herein to the contrary, Buyer shall be responsible for all costs
incurred in connection with that certain lease agreement (the "PERFECT FIT
LEASE") executed as of June 22, 2000 by and between Seller, as landlord, and
Perfect Fit Industries, Inc., as tenant ("TENANT"), for space in the
Improvements, including, without limitation, providing the $3.00/square foot
tenant improvement allowance as described in the Perfect Fit Lease, and all
other costs to prepare the premises for Tenant's occupancy as set forth in the
Perfect Fit Lease, including the construction of the demising wall described in
the Perfect Fit Lease; provided, Seller shall pay all commissions payable on
account of the Perfect Fit Lease, and such commission amount shall be paid by
Seller at Closing. In consideration of the foregoing, Seller shall pay to
Buyer's escrow agent at Closing an amount equal to $95,000.00 (in addition to
the Buyer's Broker Fee provided herein).

SECTION 3.     SALE OF THE PROPERTY: Seller agrees to sell the Property to Buyer
for the Purchase Price, subject to all of the terms and conditions contained in
this Agreement.

SECTION 4.     PAYMENT OF THE PURCHASE PRICE: At Closing, Buyer shall pay the
Purchase Price in accordance with all the terms and conditions of this
Agreement.

SECTION 5.     TITLE:

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     (a)  TITLE EXAMINATION. Seller agrees to convey fee simple marketable title
          to the Property by special warranty deed, subject only to the
          Permitted Exceptions (hereinafter defined). Seller represents and
          warrants that Seller is the fee simple owner of the Property, and at
          Closing, Seller shall deliver to Buyer good and marketable fee simple
          title to said Property, free and clear of all liens, encumbrances and
          defects of title other than zoning ordinances affecting the Property,
          utility easements of record serving the Property, taxes not yet due
          and payable, road rights of way of record and all Permitted Exceptions
          (as defined below). Within three (3) business days after the Effective
          Date, Buyer shall, at Buyer's expense, commence a title examination of
          the Property and order a survey of the Property from a surveyor
          licensed in North Carolina (the "Survey") (the results of Buyer's
          title examination is referred to herein as the "Commitment"). In the
          event that the Commitment and Survey shall show that Seller's title is
          not good, marketable, and fee simple, then the Buyer shall notify the
          Seller in writing no later than 5:00 p.m., Charlotte, North Carolina
          local time on the expiration date of the Examination Period of all
          such title defects and exceptions ("Title Objections"). Buyer shall
          not object to the Perfect Fit Lease, which shall be a Permitted
          Exception hereunder.

     (b)  FAILURE TO CORRECT TITLE OBJECTIONS. Except as hereinafter expressly
          provided in this SECTION 5(b), Seller shall have no obligation
          whatsoever to remove, satisfy, or otherwise cure, or to incur any
          expense in connection with the curing of, any valid Title Objections
          of which Seller is notified by Buyer in accordance with SECTION 5(a).
          Seller shall notify Buyer within five (5) days after Seller's receipt
          of written notice from Buyer of any Title Objections whether or not
          Seller agrees to cause such Title Objections to be cured on or before
          the Closing Date; although Seller shall not otherwise have any
          obligation to cure any Title Objections other than any judgment,
          mortgages, deeds of trust, liens, financing statements, security
          interests and similar security instruments created by Seller (such
          instruments are collectively referred to herein as the "Security
          Encumbrances"). Seller may use any portion of the Purchase Price due
          to Seller to cure such Security Encumbrances at the Closing. If Seller
          expressly agrees in writing to cure any Title Objections (other than
          Security Encumbrances which Seller shall be required to cure) pursuant
          to such notice, then Seller shall diligently endeavor to cure such
          Title Objections on or before the Closing Date. If Seller does not
          notify Buyer in such five (5) day period that it has agreed in writing
          to cure Buyer's Title Objections, or if Seller thereafter fails to
          satisfy or cure on or before the Closing Date any Security
          Encumbrances or any Title Objections made by Buyer pursuant to SECTION
          5(A) that Seller has expressly agreed in writing to cure, Buyer may,
          as its sole remedy, elect one of the following by written notice to
          Seller on or before the earlier of the Closing Date or the fifth (5th)
          day after the end of such five (5) day period (or on the Closing Date
          with respect to any Security Encumbrance or other Title Objection that
          Seller has agreed to cure and fails to satisfy or cure on or before
          the Closing Date):

          (i)  to waive any such Title Objection (thereby making such Title
               Objection and all other title matters not objected to by Buyer a
               "Permitted

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               Exception") and to close the transaction in accordance with the
               terms of this Agreement; provided, however, that with respect to
               any Security Encumbrance or any Title Objection arising in breach
               of Seller's covenant under SECTION 6(c) hereunder, which Title
               Objection may be cured by the payment of money, Seller shall be
               required to deposit in escrow with the Title Insurer such amount
               as the Title Insurer shall reasonably estimate to be necessary to
               satisfy or to remove such Title Objection to permit the Title
               Insurer to issue its policy of title insurance with respect to
               Buyer's title to the Property without exception thereto, and
               Seller shall thereafter diligently endeavor to have such Security
               Encumbrances and Title Objections so satisfied or removed; or

          (ii) to terminate this Agreement by written notice thereof to Seller,
               and in the event of such termination, Title Insurer shall deliver
               to Buyer the Earnest Money and thereafter, neither Seller nor
               Buyer shall have any further obligation or liability under this
               Agreement except for those which survive a termination of this
               Agreement. In the event any Title Objection arises in breach of
               Seller's covenant under SECTION 6(c) hereunder and such Title
               Objection is not waived by Buyer or cured at Closing as provided
               in clause (i) above, Buyer shall be entitled to terminate this
               Agreement upon written notice thereof to Seller, in which event
               the Earnest Money shall be returned to Buyer and the parties
               hereto shall have no further liabilities or obligations to the
               other except those which survive a termination of this Agreement.

          In the event Buyer fails to timely elect either of the remedies set
          forth in clauses (i) and (ii) above, Buyer shall be deemed to waive
          such Title Objections pursuant to clause (i) above.

SECTION 6.     CONDITIONS AND COVENANTS:

          (a)  BUYER'S CONDITIONS. Subject to SECTION 9(b) hereof, the
               obligation of Buyer to close pursuant to this Agreement is hereby
               made expressly conditioned upon the fulfillment (or waiver by the
               Buyer) of the following conditions:

               (1)  DELIVERY OF DOCUMENTS: On or before the Closing Date, Seller
                    shall have delivered to the Title Insurer all of the
                    documents, information and other things required of Seller
                    pursuant to SECTION 10(a) of this Agreement;

               (2)  SELLER'S PERFORMANCE: On or before the Closing Date, Seller
                    shall have performed in all material respects all of the
                    covenants and other obligations of Seller under this
                    Agreement to be performed by Seller on or before the Closing
                    Date;

               (3)  REPRESENTATIONS AND WARRANTIES. The representations and
                    Warranties of Seller set forth in SECTION 8(b) hereof shall
                    be true and correct in all material respects as of the
                    Closing Date, except for such untruths or

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                    inaccuracies disclosed to Buyer by Seller or which Buyer
                    otherwise obtains actual knowledge prior to the expiration
                    of the Examination Period.

          (b)  SELLER'S CONDITIONS. Subject to SECTION 9(a) hereof, the
               obligation of Seller to close pursuant to this Agreement is
               hereby made expressly conditioned upon the fulfillment (or waiver
               by Seller) of the following conditions:

               (1)  DELIVERY OF DOCUMENTS: On or before the Closing Date, Buyer
                    shall have delivered to the Title Insurer all of the
                    documents, information and other things required of Buyer
                    pursuant to SECTION 10(b) of this Agreement;

               (2)  BUYER'S PERFORMANCE: On or before the Closing Date, Buyer
                    shall have performed in all material respects all of the
                    covenants and other obligations of Buyer under this
                    Agreement to be performed by Buyer on or before the Closing
                    Date;

               (3)  REPRESENTATIONS AND WARRANTIES. The representations and
                    Warranties of Buyer set forth in SECTION 8(d) hereof shall
                    be true and correct in all material respects as of the
                    Closing Date.

          (c)  SELLER'S COVENANT. Unless otherwise contemplated by this
               Agreement, Seller hereby covenants and agrees with Buyer that,
               between the Effective Date and the Closing, Seller will not
               voluntarily, without the prior written consent of Buyer, convey
               any portion of the Property or any interest therein or enter into
               any encumbrance or lease with respect to all or any portion of
               the Property which would, after the consummation of a sale of the
               Property to Buyer, encumber the Property.

SECTION 7.     EXAMINATION PERIOD. From and after the Effective Date, Buyer, its
agents or representatives, at Buyer's expense and at reasonable times during
normal business hours, shall have the right to enter upon the Property for the
purpose of inspecting, examining, performing soil boring and other testing, and
surveying the Property. Buyer shall not alter the physical condition of the
Property (including, without limitation, soil or groundwater testing) without
(i) notifying Seller, to the extent possible, of the exact location, nature and
extent of Buyer's requested tests, and (ii) obtaining the prior written consent
of Seller to any physical alteration of the Property, which Seller may refuse in
its sole and absolute discretion. Buyer assumes all responsibility for the acts
of itself, its agents or representatives in exercising its rights under this
SECTION 7 and agrees to indemnify and hold Seller harmless from any damages
resulting therefrom. Except as provided in SECTION 5 above, Buyer shall have
from the Effective Date through the end of the Examination Period to perform the
above inspections, examinations and testing and any other investigations or
inquiries as Buyer may elect in order to determine if the Property is acceptable
to Buyer as an investment, in Buyer's sole and absolute discretion. If, prior to
the expiration of the Examination Period, Buyer determines that the Property is
unsuitable, in Buyer's sole discretion, for any reason or no reason, and
provides written notice to Seller thereof, then this Agreement shall terminate,
and Buyer shall receive a return of the Earnest Money and the parties hereto
shall have no further liabilities or obligations to the other

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except those which survive a termination of this Agreement. The provisions of
this Section 7 shall survive any termination of this Agreement.

SECTION 8.     REPRESENTATIONS AND WARRANTIES:

     (a)  SURVIVAL AND LIMITATION OF GENERAL REPRESENTATIONS AND WARRANTIES. The
          representations and warranties set forth in SECTION 8(b) below shall
          survive Closing for a period of six (6) months; provided, however,
          Buyer shall have no claim against Seller for any untruth or inaccuracy
          in any such representation or warranty in which Seller has provided
          Buyer written notice or Buyer otherwise obtain actual knowledge
          thereof on or before the Closing, and Buyer nevertheless elects to
          close the transactions contemplated herein,

     (b)  BY SELLER. Seller represents and warrants to Buyer as of the Effective
          Date that, except as otherwise disclosed in any of the materials
          delivered to Buyer prior to the Effective Date, to the best of
          Seller's knowledge the following is true:

          (i)  Seller is a corporation duly organized, validly existing and in
               good standing under the laws of the State of Texas. Seller has,
               or on the Closing Date will have, the power and authority to
               carry out Seller's obligations hereunder. All requisite action
               necessary to authorize Seller to enter into this Agreement and to
               carry out Seller's obligations hereunder has been, or on the
               Closing Date will have been, taken. The individual executing this
               Agreement on behalf of Seller has the full right, power and
               authority to do so. After the discharge by Seller of all Security
               Encumbrances at or before the Closing, Seller will have the power
               and authority to sell and convey the Property in accordance with
               the terms of this Agreement.

          (ii) Seller has not received any written notice of and does not
               otherwise have knowledge of any pending or contemplated
               proceedings of any of the applicable governmental entities to (i)
               impose any special assessment against the Property; or (ii)
               condemn any portion of the Property.

         (iii) There is no litigation, suit, action, claim, condemnation
               proceeding, arbitration, investigation (including any
               investigation concerning valuation of the Property for tax
               purposes) by the United States of America, State of North
               Carolina, Mecklenburg County, North Carolina, City of Charlotte,
               North Carolina, or any department, board, agency, office,
               commission or other subdivision thereof or any official thereof
               ("Applicable Governmental Authorities") or administrative
               proceeding or other form of governmental enforcement or executive
               or legislative proceeding pending or threatened against or
               affecting Seller or the Property.

          (iv) All service and maintenance contracts affecting the Property and
               being assigned to Buyer (each, a "Contract") are in full force
               and effect in all material respects and Seller is not in material
               default under any Contract

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               and no other party to any Contract is in material default under
               such Contract. Seller has received no notice of any material
               default thereunder and has no knowledge of any fact or facts
               which, with the delivery of notice or with the passage of time,
               or both, would be a material default under the terms thereof.

          (v)  No entity or any other person (other than Buyer) has any right or
               option to purchase all or any portion of the Property, except for
               any back-up contracts for the sale of the Property permitted by
               the terms of this Agreement.

          (vi) Seller has received no notice from any public or private utility
               currently serving the Property of its inability to provide the
               service necessary for the Intended Use of the Property.

         (vii) There are not (i) any changes contemplated in any applicable
               laws, ordinances or restrictions affecting the Property; or (iv)
               any governmental special assessments, either pending or
               confirmed, for sidewalk, paving, water, sewer, or other
               improvements on or adjoining the Property, and owners'
               association special assessments.

        (viii) The building located on the Real Property, in its current
               configuration, contains approximately 34,412 usable square feet.

          (ix) There are no Hazardous Substances present upon and no Hazardous
               Substances have been disposed within the buildings or the
               Property in violation of any applicable environmental laws,
               including as a result of the migration of Hazardous Substances
               from neighboring tracts. "Hazardous Substances" is defined as
               those substances, materials, and wastes, including but not
               limited to, those substances, materials and wastes listed in the
               United States Department of Transportation Hazardous Materials
               Table (49 CFR 172.101) or by the Environmental Protection Agency
               as hazardous substances (40 CFR Part 302) and amendments thereto,
               or such substances, materials and wastes, which are or become
               regulated under any applicable local, state or federal law,
               including, without limitation, any material, waste or substance
               which is (i) petroleum, (ii) asbestos, (iii) polychlorinated
               biphenyls, (iv) designated as a Hazardous Substance pursuant to
               Section 331 of the Clean Water Act, 33 U.S.C. Sec. 1251, et. Seq.
               (33 U.S.C. 1321) or listed pursuant to Section 307 of the Clean
               Water Act (33 U.S.C. Sec. 1371) (v) defined as a hazardous waste
               pursuant to Section 1004 of the Resource Conservation and
               Recovery Act, 42 U.S.C. Sec. 6901, et. Seq. (42 U.S.C. Sec. 6903)
               or (vi) defined as a hazardous substance pursuant to Section 101
               of the Comprehensive Environmental Response, Compensation and
               Liability Act, 42 U.S.C. Sec. 9601, et. Seq. (42 U.S.C. 9601).

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     (c)  SELLER'S KNOWLEDGE. For purposes of this Agreement, the phrase "to the
          best of Seller's knowledge" or similar references to "knowledge" shall
          mean the current actual (as distinguished from implied, constructive
          or imputed knowledge) knowledge of Gage Hunt who is the Vice-President
          of Seller with responsibility for the Property ("Seller's
          Representative"), without independent investigation by Seller's
          Representative of any files, records, documents or writings of any
          kind and without inquiry by Seller's Representative or any other
          person.

     (d)  BY BUYER. Buyer represents and warrants to Seller that in the event
          Buyer assigns this Agreement as permitted herein to a corporation or
          other entity, Buyer shall be an entity duly organized, validly
          existing and in good standing under the laws of the State of its
          formation and shall be authorized to do business in the State of North
          Carolina, and shall have duly authorized the execution, performance
          and closing of this Agreement.

     (e)  BROKERAGE COMMISSIONS. Each of Seller and Buyer represents to the
          other that it has had no dealings, negotiations or consultations with
          any broker, representative, employee, agent or other intermediary
          except the Seller's Broker who will be compensated by Seller, and
          Buyer's Broker who will be compensated by Buyer and Seller as
          described in SECTION 2 hereto, pursuant to separate written agreements
          in connection with the sale of the Property (the compensation due to
          the Seller's Broker, the "SELLER'S BROKER FEE", and the compensation
          due to the Buyer's Broker, the "BUYER'S BROKER FEE"). Seller will
          indemnify, defend and hold Buyer free and harmless from the Seller's
          Broker Fee and the claims of any other broker(s), representative(s),
          employee(s), agent(s) or other intermediary(ies) claiming by, through
          or under Seller, which are entitled to compensation in connection with
          this Agreement or in connection with the sale of the Property. Buyer
          will indemnify, defend and hold Seller free and harmless from the
          Buyer's Broker Fee and the claims of any broker(s), representative(s),
          employee(s), agent(s) or other intermediary(ies) claiming by, through
          or under Buyer, which are entitled to compensation in connection with
          this Agreement or in connection with the sale of the Property. The
          provisions of this SECTION 8(e) shall survive Closing or any
          termination of this Agreement.

     (f)  AS IS. Buyer acknowledges that Seller is selling, and Buyer shall
          accept, the Property in an "AS IS" condition without any
          representation or warranty whatsoever by Seller relating to the
          Property, with the exception of the express representations and
          warranties set forth in this Agreement or any of the Closing Documents
          (hereinafter defined).

SECTION 9.     EVENTS OF DEFAULT:

     (a)  REMEDIES OF SELLER. If any condition to Seller's obligations at the
          Closing set forth in SECTION 6(b) of this Agreement cannot or will not
          be satisfied on or before the Closing Date due to a misrepresentation
          by Buyer or default by Buyer of any of Buyer's obligations under this
          Agreement and Buyer fails to satisfy that

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          condition within seven (7) days after Buyer's receipt of written
          notice of the foregoing from Seller, Seller shall have the right to
          (i) terminate this Agreement, and (ii) the Earnest Money shall be
          delivered to Seller within two (2) business days after such
          termination as liquidated damages and not as a penalty.
          Notwithstanding the preceding sentence, Seller may, on or before the
          expiration of the applicable cure period, notify Buyer and the Title
          Insurer in writing of its election to waive its right to terminate
          this Agreement as a result of such failed condition in which case the
          parties hereto shall proceed to Closing. Buyer and Seller agree that
          actual damages resulting from Buyer's failure to satisfy any such
          condition or conditions precedent would be difficult or impossible to
          ascertain and that the amount of the Earnest Money is a reasonable
          estimate of the damages for such breach or failure. After any
          termination of this Agreement by Seller pursuant to this subparagraph,
          the parties hereto shall be released from all further liabilities and
          obligations hereunder except those that expressly survive a
          termination of this Agreement.

     (b)  REMEDIES OF BUYER. If any condition to Buyer's obligations at the
          Closing set forth in SECTION 6(a) above cannot or will not be
          satisfied on or before the Closing Date due to a misrepresentation by
          Seller (as limited in Section 6(a)(4)) or default by Seller of any of
          Seller's obligations under this Agreement and Seller fails to satisfy
          that condition within seven (7) days after Seller's receipt of written
          notice of the foregoing from Buyer, Buyer, as Buyer's sole and
          exclusive remedy, may elect one of the following remedies: (i) to
          terminate this Agreement by delivering written notice thereof to the
          Seller and the Title Insurer within five (5) business days after the
          expiration of such seven (7) day period, in which case (1) the Earnest
          Money shall be returned to Buyer within two (2) business days after
          such termination, and (2) all other rights and obligations of Seller
          and Buyer hereunder (except those set forth in this Agreement which
          expressly survive a termination of this Agreement) shall terminate
          immediately, and (3) if the failure of such condition or conditions is
          caused by the failure of Seller to perform any of Seller's obligations
          set forth in Section 10 (a) below, Seller shall reimburse Buyer for
          all out-of-pocket expenses actually incurred by Buyer in connection
          with this Agreement, provided such reimbursement shall in no event
          exceed $25,000.00; (ii) to notify Seller and the Title Insurer in
          writing within five (5) business days after the expiration of such
          seven (7) day period that Buyer has waived Buyer's right to terminate
          this Agreement as a result of Seller's failure to satisfy such
          condition or conditions and the parties shall thereafter proceed to
          the Closing with no reduction in the Purchase Price (failing which,
          Buyer shall be deemed to have elected option (i) above so long as
          Buyer does not elect option (iii) within the time limits specified
          therein); or (iii) if the failure of such condition or conditions is
          caused by a failure of Seller to perform any of Seller's obligations
          set forth in SECTION 10(a) below, to commence legal proceedings within
          thirty (30) days after the expiration of such seven (7) day period
          solely to enforce all rights of specific performance of Seller's
          obligations set forth in SECTION 10(a) below; provided, however, if
          Buyer enforces specific performance of such obligations of Seller,
          Buyer agrees that Buyer shall accept whatever title Seller has to the
          Property, if

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          any, subject to all liens, encumbrances and other matters affecting
          title to the Property (all of which shall be deemed Permitted
          Exceptions) other than any (i) Security Encumbrances and (ii) matters
          created after the Effective Date by the willful action of Seller which
          are not otherwise permitted by this Agreement, with no reduction in
          the Purchase Price, and in no event shall Seller be obligated to cure
          or remove or bond against any title defects, liens, encumbrances or
          other matters affecting title to the Property other than (i) Security
          Encumbrances and (ii) matters created after the Effective Date by the
          willful action of Seller which are not otherwise permitted by this
          Agreement, and provided further, however, if, within such thirty (30)
          day period, Buyer fails to commence legal proceedings seeking specific
          performance, this Agreement shall automatically terminate pursuant to
          option (i) above. After any termination of this Agreement by Buyer
          pursuant to this subparagraph or any automatic termination as provided
          above, the parties hereto shall be released from all further
          liabilities and obligations hereunder except those that expressly
          survive a termination of this Agreement.

SECTION 10.    CLOSING: At Closing, the Earnest Money shall be applied as part
of the Purchase Price or as otherwise provided in Section 1(b)(i). The Closing
shall be held at the office of Buyer's attorney or such other place as the
parties hereto may mutually agree. Possession shall be delivered at closing,
unless otherwise agreed herein.

     (a)  SELLER'S OBLIGATIONS AT CLOSING. At the Closing, Seller shall execute,
          acknowledge (if appropriate) and deliver to Title Insurer, at Seller's
          sole cost and expense, the following (the "Closing Documents"):

          (1)  A special warranty deed to the Property, subject to the Permitted
               Exceptions and other matters subsequently approved by Buyer or
               Buyer's counsel, which deed shall be in form sufficient for
               recording in the real property records of the jurisdiction in
               which the Real Property is located.

          (2)  A Bill of Sale conveying to Buyer any personal property located
               in the Improvements not retained by Seller.

          (3)  An Assignment and Assumption Agreement of the Perfect Fit Lease
               and the Contracts (the "Assignment") whereby (i) Seller assigns
               and Buyer assumes all obligations accruing under the Perfect Fit
               Lease and the Contracts from and after the Closing Date, and (ii)
               Seller indemnifies, defends and holds Buyer harmless with respect
               to all liabilities, claims, costs and expenses (including,
               without limitation, reasonable attorneys' fees) relating to acts
               or omissions accruing under the Perfect Fit Lease and the
               Contracts before the Closing Date; and (iii) Buyer indemnifies,
               defends and holds Seller harmless with respect to all
               liabilities, claims, costs and expenses (including, without
               limitation, reasonable attorneys' fees) relating to acts or
               omissions accruing under the Perfect Fit Lease and the Contracts
               from and after the Closing Date.

                                       11
<PAGE>

          (4)  An affidavit pursuant to the Foreign Investment in Real Property
               Tax Act.

          (5)  A closing statement and acknowledgments setting forth all
               prorations and credits and other matters handled outside of
               Closing.

          (6)  Four (4) original counterparts of a lease agreement between
               Buyer, as Landlord, and Seller or its affiliate, as Tenant, for
               the Improvements now and hereafter located on the Real Property,
               in form and substance to be mutually agreed upon by Buyer and
               Seller prior to the Closing (the "Lease").

          (7)  Such other documents as are customary for real estate closings in
               the Charlotte, North Carolina area or as may be reasonably
               required to close this transaction, duly executed and
               acknowledged in recorded form (if to be recorded); provided,
               however, any other conveyance documents reasonably requested by
               Buyer shall be without recourse or warranty and without any
               representations with respect to the subject matter thereof.

     (b)  BUYER'S OBLIGATIONS AT CLOSING. At the Closing, Buyer shall execute,
          acknowledge (if appropriate) and deliver to Title Insurer, at Buyer's
          sole cost and expense, the following:

          (1)  the Purchase Price in immediately available funds, reduced by the
               amount of the Earnest Money applied for that purpose, and
               increased or reduced by the net amount of adjustments and
               prorations owed by or to Buyer, as appropriate;

          (2)  Buyer's counterpart to the Assignment.

          (3)  A closing statement and acknowledgments setting forth all
               prorations and credits and other matters handled outside of
               Closing.

          (4)  Four (4) original counterparts of the Lease.

          (5)  Such other documents as are customary for real estate closings in
               the Charlotte, North Carolina area or as may be reasonably
               required to close this transaction, duly executed and
               acknowledged in recorded form (if to be recorded)

SECTION 11.    RISK OF LOSS/DAMAGE/REPAIR: Until the Closing, the risk of loss
or damage to the Property, except as otherwise provided herein, shall be borne
by Seller. If, prior to the Closing Date, a casualty or condemnation by any
public authority under its power of eminent domain damages or destroys a
Material Portion of the Improvements (as hereinafter defined), then this
Agreement may be terminated by either party upon written notice to the other
delivered within fifteen (15) days after such casualty or condemnation and the
Earnest Money shall be returned to Buyer. A "MATERIAL PORTION OF THE
IMPROVEMENTS" as used herein shall mean damage

                                       12
<PAGE>

or destruction to a portion of the Property reasonably requiring at least
$250,000.00 to repair or restore as determined in Seller's good faith estimate.
In the event either party does not terminate this Agreement as provided above in
this SECTION 11 or the casualty or condemnation damages or destroys less than a
Material Portion of the Improvements, then the parties hereto shall proceed to
the Closing and Seller shall assign to Buyer all of the insurance proceeds (with
a credit for any deductible) or awards received on account of such casualty or
condemnation, with no reduction in the Purchase Price.

SECTION 12.    NOTICES: Unless otherwise provided herein, all notices and other
communications which may be or are required to be given or made by any party to
the other in connection herewith shall be in writing and shall be deemed to have
been properly given and received on the date delivered in person, deposited in
the United States mail, registered or certified, return receipt requested, or
deposited with a nationally recognized overnight express carrier for next day
delivery (e.g. Federal Express), to the addresses set out in Section 1(g) as to
Seller and in section 1(h) as to Buyer, or at such other addresses as specified
by written notice delivered in accordance herewith.

SECTION 13.    ENTIRE AGREEMENT: This agreement constitutes the sole and entire
agreement among the parties hereto and no modification of this Agreement shall
be binding unless in writing and signed by all parties hereto.

SECTION 14.    TIME OF ESSENCE: Time is of the essence with respect to the
performance of the provisions this Agreement including all dates and time
periods established herein.

SECTION 15.    OTHER COVENANTS:

     (a)  FORM OF LEASE. Seller and Buyer shall work together in good faith
          prior to the expiration of the Examination Period to agree in all
          material respects to the form of the Lease to be executed by the
          parties hereto at Closing. In the event the form of the Lease is not
          agreed to in writing by the parties hereto in all material respects on
          or before the Examination Period, either party may thereafter
          terminate this Agreement by providing written notice thereof to the
          other party; provided, unless and until such notice of termination is
          given to the other party, the parties hereto shall continue to work
          together in good faith to agree to the form of the Lease in all
          material respects prior to the Closing. The foregoing right to
          terminate this Agreement shall expire at such time as the parties
          hereto agree in writing to the form of the Lease in all material
          respects on or before the Closing. The parties hereto agree that the
          term of the Lease shall commence on the Closing Date and shall expire
          on the earlier of (i) the date Perfect Fit occupies the premises
          pursuant to the Perfect Fit Lease, and (ii) January 15, 2001. Rent
          shall be paid monthly and shall be an amount equal to $43,937.50 per
          month. If the commencement date of the Lease shall occur on a date
          that is not the first day of a calendar month, or the expiration date
          of the Lease shall occur on a date that is not the last day of a
          calendar month, the rent payable for such partial month shall be
          prorated based on the number of days within such month that are within
          the Lease term. The first month's rent (as prorated if applicable)
          shall be paid on the

                                       13
<PAGE>

          Closing Date. During the term of the Lease, Seller shall provide for
          its own services to the building, including, but not limited to,
          janitorial, utilities, and landscaping services. Buyer shall be
          responsible for maintaining the roof, all structural elements of the
          Improvements, and major repairs and replacements to the HVAC system in
          the Improvements.

     (b)  MAINTENANCE OF PROPERTY. Seller shall operate and maintain the
          Property in substantially the same manner in which it operated and
          maintained the Property prior to the execution of this Agreement,
          reasonable wear and tear excepted.

     (c)  BUYER'S FINANCING. If Buyer fails to obtain a commitment letter for
          Buyer's intended financing prior to the expiration of the Examination
          Period, Buyer shall be entitled to terminate this Agreement on or
          before the expiration date of the Examination Period by written notice
          to Seller, in which event, this Agreement shall terminate, the Earnest
          Money shall be returned to Buyer, and the parties shall have no
          further obligations to the other except for those which expressly
          survive a termination of this Agreement. After the expiration of the
          Examination Period, Buyer shall have no right to terminate this
          Agreement for any failure to obtain all or any portion of Buyer's
          intended financing.

SECTION 16.    LITIGATION AND PREVAILING PARTY: If any litigation arises as a
result of this Agreement, then the prevailing party shall be entitled to
reimbursement of all reasonable attorneys fees.

SECTION 17.    APPLICABLE LAW: This Agreement shall be construed under the laws
of the state in which the Property is located.

SECTION 18.    LIMITATION OF LIABILITY: Notwithstanding anything herein to the
contrary, the liability of each party hereto resulting from the breach or
default by such party shall be limited to direct actual damages incurred by the
injured party and each party hereto hereby waives its rights to recover from the
other party consequential, punitive, exemplary, and speculative damages. The
provisions of this SECTION 18 shall survive the termination of this Agreement.

SECTION 19.    ASSIGNMENT: Buyer may not assign its rights hereunder without the
prior consent of Seller which consent may be withheld in Seller's sole and
unreviewable discretion; provided, Buyer may assign its rights hereunder to an
entity in which Buyer holds at least a 10% equity, partnership, or membership
interest (an "Affiliate"). Any assignment consented to be Seller (including an
assignment to an Affiliate) shall not relieve Buyer of its obligations under
this Agreement.

SECTION 20.    SUCCESSORS AND ASSIGNS: This Agreement shall bind and inure to
the benefit of the parties hereto and their respective successors and permitted
assigns.

SECTION 21.    DAYS: If any action is required to be performed, or if any
notice, consent or other communication is given, on a day that is a Saturday or
Sunday or a legal holiday in the jurisdiction in which the action is required to
be performed or in which is located the intended

                                       14
<PAGE>

recipient of such notice, consent or other communication, such performance shall
be deemed to be required, and such notice, consent or other communication shall
be deemed to be given, on the first business day following such Saturday, Sunday
or legal holiday. Unless otherwise specified herein, all references herein to a
"day" or "days" shall refer to calendar days and not business days.

SECTION 22.    COUNTERPARTS: To facilitate execution, this Agreement may be
executed in as many counterparts as may be required. It shall not be necessary
that the signature on behalf of both parties hereto appear on each counterpart
hereof. All counterparts hereof shall collectively constitute a single
agreement. Telecopies of counterparts, the receipt of which is confirmed, shall
have the same valid and binding effect as originals.

SECTION 23.    SEVERABILITY: If any term, covenant or condition of this
Agreement, or the application thereof to any person or circumstance, shall to
any extent be invalid or unenforceable, the remainder of this Agreement, or the
application of such term, covenant or condition to other persons or
circumstances, shall not be affected thereby, and each term, covenant or
condition of this Agreement shall be valid and enforceable to the fullest extent
permitted by law.

SECTION 24.    COSTS: Regardless of whether Closing occurs hereunder, and except
as otherwise expressly provided herein, each party hereto shall be responsible
for its own costs in connection with this Agreement and the transactions
contemplated hereby, including, without limitation, fees of attorneys, engineers
and accountants.

SECTION 25.    INCORPORATION BY REFERENCE: All of the exhibits and schedules
attached hereto are by this reference incorporated herein and made a part
hereof.

SECTION 26.    BACK-UP CONTRACTS. Seller may market the Property and execute
back-up contracts for the sale of the Property prior to the Closing.

                                       15
<PAGE>

     IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement as of the
later of the dates shown below (the "Effective Date").

                                   SELLER:

                                   MARKETING SPECIALISTS SALES
                                   COMPANY, a Texas corporation

                                   By:      _________________________________
                                   Name:    _________________________________
                                   Title:   _________________________________
                                   Date:    __________________________, 2000.

                                   BUYER:

                                   __________________________________________
                                   Steve Farnie
                                   Date:    __________________________, 2000.

     The undersigned hereby acknowledges receipt of the Earnest Money set forth
herein and agrees to hold said Earnest Money in accordance with the terms
hereof.

                                            By:_________________________________
                                            Name:_______________________________
                                            Date:_______________________________

                                       16
<PAGE>

                                   Exhibit A

                               Legal Description

                                       17
<PAGE>

                                   EXHIBIT A

TRACT I:

BEING in the City of Charlotte, County of Mecklenburg, State of North
Carolina and being more particularly described as follows:

                BEGINNING at a point marking the intersection of the
        centerlines of the right-of-way of Tower Point Drive (60' R/W) and
        running thence with the centerline of the right-of-way of Crown
        Centre Drive three (3) calls and distances as follows:  (1) N.
        52-37-52 E. 177.23 feet to a point; (2) in a northeasterly direction
        with the arc of a circular curve to the right, having a radius of
        300.00 feet, an arc distance of 140.88 feet to a point; and (3) N.
        79-32-09 E. 84.87 feet to a point; thence leaving the centerline of
        said right-of-way S. 37-22-08 E. 261.23 feet to a point in the
        northernmost corner of Crown Centre Executive Park, Phase I, Block 1
        as same is shown on map thereof recorded in Map Book 21 at Page 622
        in the Mecklenburg County Public Registry; thence with the
        northwesterly margin of the property of said Crown Centre Executive
        Park S. 52-32-57 W. 388.67 feet to a point in the centerline of the
        right-of-way of Tower Point Drive; thence with the centerline of said
        right-of-way N. 37-22-07 W. 332.66 feet to a point, the point of
        place of beginning, containing 2,843 acres, all as shown on survey
        for Atlas Marketing Co., Inc. as prepared by Jack R. Christian,
        N.C.R.L.S., dated October 1, 1991, reference to which survey is
        hereby made for a more particular description of the property.

TRACT II:

        BEING that certain 2.50 acre tract known as Lot 3, Block 1 of Crown
        Centre Executive Park as shown on a map recorded in Map Book 21 at
        Page 622 of the Mecklenburg County Public Registry.

TRACT III:

        Together with all non-exclusive easements granted in that certain
        Declaration of Covenants, Conditions and Restrictions recorded in
        Book 5206 at Page 893, as amended in Book 5832 at Page 734 all in the
        Mecklenburg County Public Registry.<PAGE>
                                                                   Exbibit 10.54

                   AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION

                         STANDARD INDUSTRIAL/COMMERCIAL
                            SINGLE TENANT LEASE - NET

1.   BASIC PROVISIONS ("BASIC PROVISIONS")

     1.1 PARTIES: This Lease ("LEASE"), dated for reference purposes only, May
15, 2000, is made by and between LASALLE COMPANY, LLC, an Arizona Limited
Liability Company, whose address is c/o Hannay Investment Properties, 4651 E.
Palomino Road, Phoenix, Arizona 85018 ("LESSOR") and MARKETING SPECIALISTS SALES
COMPANY, a Texas corporation, whose address is 17855 Dallas Parkway, Dallas,
Texas, 75287, Attn: Gage Hunt ("LESSEE"), (collectively the "PARTIES," or
individually a "PARTY").

     1.2 PREMISES: That certain real property, including all improvements
therein or to be provided by Lessor under the terms of this Lease, and commonly
known by the street address of 2801 South 35th Street, Phoenix, located in the
County of Maricopa, State of Arizona, and legally described on EXHIBIT "A"
attached hereto and made a part hereof ("PREMISES"). (See Paragraph 2 for
further provisions.)

     1.3 TERM: One (1) year and zero (-0-) months ("ORIGINAL TERM") commencing
as of the date of close of Lessor's purchase of the property from Lessee
("COMMENCEMENT DATE") and ending on the last day of the twelfth month following
the Commencement Date ("EXPIRATION DATE"). (See Paragraph 3 for further
provisions.)

     1.5 BASE RENT: $21,757 per month ("BASE RENT"), payable on the first day of
each month during the term of this Lease. Rent for any partial month shall be
pro-rated based on the actual number of days in the month. (See Paragraph 4 for
further provisions.)

     1.7 SECURITY DEPOSIT: None.

     1.8 PERMITTED USE: General Office Use. (See Paragraph 6 for further
provisions.)

     1.9 INSURING PARTY: Lessor is the "INSURING PARTY" unless otherwise stated
herein. (See Paragraph 8 for further provisions.)

     1.12 ADDENDA. Attached hereto is a Lease Addendum consisting of Paragraphs
49 through 55 and EXHIBIT A, all of which constitute a part of this Lease.

2.   PREMISES.

     2.1 LETTING. Lessor hereby leases to Lessee, and Lessee hereby leases from
Lessor, the Premises, for the term, at the rental, and upon all of the terms,
covenants and conditions set forth in this Lease. Unless otherwise provided
herein, any statement of square footage set forth in this Lease, or that may
have been used in calculating rental, is an approximation which Lessor

NET                                  PAGE 1                       Initials _____
<PAGE>

and Lessee agree is reasonable and the rental based thereon is not subject to
revision whether or not the actual square footage is more or less.

     2.2 CONDITION. Lessor shall deliver the Premises to Lessee clean and free
of debris on the Commencement Date and warrants to Lessee that the existing
plumbing, fire sprinkler system, lighting, air conditioning, heating, and
loading doors, if any, in the Premises, other than those constructed by Lessee,
shall be in good operating condition on the Commencement Date. If a
non-compliance with said warranty exists as of the Commencement Date, Lessor
shall, except as otherwise provided in this Lease, promptly after receipt of
written notice from Lessee setting forth with specificity the nature and extent
of such non-compliance, rectify same at Lessor's expense. If Lessee does not
give Lessor written notice of a non-compliance with this warranty within thirty
(30) days after the Commencement Date, correction of that non-compliance shall
be the obligation of Lessee at Lessee's sole cost and expense.

     2.3 COMPLIANCE WITH COVENANTS, RESTRICTIONS AND BUILDING CODE. Lessor
warrants to Lessee that the improvements on the Premises comply with all
applicable covenants or restrictions of record and applicable building codes,
regulations and ordinances in effect on the Commencement Date. Said warranty
does not apply to the use to which Lessee will put the Premises or to any
Alterations or Utility Installations (as defined in Paragraph 7.3(a)) made or to
be made by Lessee. If the Premises do not comply with said warranty, Lessor
shall, except as otherwise provided in this Lease, promptly after receipt of
written notice from Lessee setting forth with specificity the nature and extent
of such non-compliance, rectify the same at Lessor's expense. If Lessee does not
give Lessor written notice of a non-compliance with this warranty within six (6)
months following the Commencement Date, correction of that non-compliance shall
be the obligation of Lessee at Lessee's sole cost and expense.

     2.4 ACCEPTANCE OF PREMISES. Lessee hereby acknowledges: that it has been
advised by the Brokers to satisfy itself with respect to the condition of the
Premises (including but not limited to the electrical and fire sprinkler
systems, security, environmental aspects, compliance with Applicable Law, as
defined in Paragraph 6.3, and the present and future suitability of the Premises
for Lessee's intended use, that Lessee has made such investigation as it deems
necessary with reference to such matters and assumes all responsibility therefor
as the same relate to Lessee's occupancy of the Premises and/or the term of this
Lease, and that neither Lessor nor any of Lessor's agents, has made any oral or
written representations or warranties with respect to the said matters other
than as set forth in this Lease.

     2.5 LESSEE PRIOR OWNER/OCCUPANT. The warranties made by Lessor in this
Paragraph 2 shall be of no force or effect if immediately prior to the date set
forth in Paragraph 1.1 Lessee was the owner or occupant of the Premises. In such
event, Lessee shall, at Lessee's sole cost and expense, correct any
non-compliance of the Premises with said warranties.

3.   TERM.

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

NET                                  PAGE 2                       Initials _____
<PAGE>

4.   RENT.

     4.1 BASE RENT. Lessee shall cause payment of Base Rent and other rent or
charges, as the same may be adjusted from time to time, to be received by Lessor
in lawful money of the United States, without offset or deduction, on or before
the day on which it is due under the terms of this Lease. Base Rent and all
other rent and charges for any period during the term hereof which is for less
than one (1) full calendar month shall be prorated based upon the actual number
of days of the calendar month involved. Payment of Base Rent and other charges
shall be made to Lessor at its address stated herein or to such other persons or
at such other addresses as Lessor may from time to time designate in writing to
Lessee.

5.   SECURITY DEPOSIT. Lessee shall deposit with Lessor upon execution hereof
the Security Deposit set forth in Paragraph 1.7 as security for Lessee's
faithful performance of Lessee's obligations under this Lease. If Lessee fails
to pay Base Rent or other rent or charges due hereunder, or otherwise Defaults
under this Lease (as defined in Paragraph 13.1), Lessor may use, apply or retain
all or any portion of said Security Deposit for the payment of any amount due
Lessor or to reimburse or compensate Lessor for any liability, cost, expense,
loss or damage (including attorneys' fees) which Lessor may suffer or incur by
reason thereof. If Lessor uses or applies all or any portion of said Security
Deposit, Lessee shall within ten (10) days after written request therefor
deposit moneys with Lessor sufficient to restore said Security Deposit to the
full amount required by this Lease. Any time the Base Rent increases during the
term of this Lease, Lessee shall, upon written request from Lessor, deposit
additional moneys with Lessor sufficient to maintain the same ratio between the
Security Deposit and the Base Rent as those amounts are specified in the Basic
Provisions. Lessor shall not be required to keep all or any part of the Security
Deposit separate from its general accounts. Lessor shall, at the expiration or
earlier termination of the term hereof and after Lessee has vacated the
Premises, return to Lessee (or at Lessor's option, to the last assignee, if any,
of Lessee's interest herein), that portion of the Security Deposit not used or
applied by Lessor. Unless otherwise expressly agreed in writing by Lessor, no
part of the Security Deposit shall be considered to be held in trust, to bear
interest or other increment for its use, or to be prepayment for any moneys to
be paid by Lessee under this Lease.

6.   USE.

     6.1 USE. Lessee shall use and occupy the Premises only for the purposes set
forth in Paragraph 1.8, and for no other purpose. Lessee shall not use or permit
the use of the Premises in a manner that creates waste or nuisance, or that
disturbs owners and/or occupants of, or causes damage to neighboring premises or
properties.

     6.2 HAZARDOUS SUBSTANCES.

     (a) REPORTABLE USES REQUIRE CONSENT. The term "HAZARDOUS SUBSTANCES" as
used in this Lease shall mean any product, substance, chemical, material or
waste whose presence, nature, quantity and/or intensity of existence, use,
manufacture, disposal, transportation, spill, release or effect, either by
itself or in combination with other materials, is either (i) potentially
injurious to the public health, safety or welfare, the environment or the
Premises, (ii) regulated or monitored by any governmental authority, or (iii) a
basis for liability

NET                                  PAGE 3                       Initials _____
<PAGE>

of Lessor to any governmental agency or third party under any applicable statute
or common law theory. Hazardous Substance shall include but not be limited to,
hydrocarbons, petroleum, gasoline, crude oil or any products, by-products or
fractions thereof. Lessee shall not engage in any activity in, on or about the
Premises which constitutes a Reportable Use (as hereinafter defined) of
Hazardous Substances without the express prior written consent of Lessor and
compliance in a timely manner (at Lessee's sole cost and expense) with all
Applicable Law (as defined in Paragraph 6.3). "REPORTABLE USE" shall mean (i)
the installation or use of any above or below ground storage tank, (ii) the
generation, possession, storage, use, transportation, or disposal of a Hazardous
Substance that requires a permit from, or with respect to which a report,
notice, registration or business plan is required to be filed with, any
governmental authority. Reportable Use shall also include Lessee's being
responsible for the presence in, on or about the Premises of a Hazardous
Substance with respect to which any Applicable Law requires that a notice be
given to persons entering or occupying the Premises or neighboring properties.
Notwithstanding the foregoing, Lessee may, without Lessor's prior consent, but
in compliance with all Applicable Law, use any ordinary and customary materials
reasonably required to be used by Lessee in the normal course of Lessee's
business permitted on the Premises, so long as such use is not a Reportable Use
and does not expose the Premises or neighboring properties to any meaningful
risk of contamination or damage or expose Lessor to any liability therefor. In
addition, Lessor may (but without any obligation to do so) condition its consent
to the use or presence of any Hazardous Substance, activity or storage tank by
Lessee upon Lessee's giving Lessor such additional assurances as Lessor, in its
reasonable discretion, deems necessary to protect itself, the public, the
Premises and the environment against damage, contamination or injury and/or
liability therefrom or therefor, including, but not limited to, the installation
(and removal on or before Lease expiration or earlier termination) of reasonably
necessary protective modifications to the Premises (such as concrete encasement)
and or the deposit of an additional Security Deposit under Paragraph 5 hereof.

     (b) DUTY TO INFORM LESSOR. If Lessee knows, or has reasonable cause to
believe that a Hazardous Substance, or a condition involving or resulting from
same, has come to be located in, on, under or about the Premises, other than as
previously consented to by Lessor, Lessee shall immediately give written notice
of such fact to Lessor. Lessee shall also immediately give Lessor a copy of any
statement, report, notice, registration, application, permit, business plan,
license, claim, action or proceeding given to, or received from, any
governmental authority or private party, or persons entering or occupying the
Premises, concerning the presence, spill, release, discharge of, or exposure to,
any Hazardous Substance or contamination in, on, or about the Premises,
including but not limited to all such documents as may be involved in any
Reportable Uses involving the Premises.

     (c) INDEMNIFICATION. Lessee shall indemnify, protect, defend and hold
Lessor, its agents, employees, lenders and ground lessor, if any, and the
Premises, harmless for, from and against any and all loss of rents and/or
damages, liabilities, judgments, costs, claims, liens, expenses, penalties,
permits and attorney's and consultant's fees arising out of or involving any
Hazardous Substance or storage tank brought onto the Premises by or for Lessee
or under Lessee's control. Lessee's obligations under this Paragraph 6 shall
include, but not be limited to, the effects of any contamination or injury to
person, property or the environment created or suffered by Lessee and the cost
of investigation (including consultant's and attorney's fees and testing),
removal, remediation, restoration and/or abatement thereof, or of any
contamination

NET                                  PAGE 4                       Initials _____
<PAGE>

therein involved, and shall survive the expiration or earlier termination of
this Lease. No termination, cancellation or release agreement entered into by
Lessor and Lessee shall release Lessee from its obligations under this Lease
with respect to Hazardous Substances or storage tanks, unless specifically so
agreed by Lessor in writing at the time of such agreement.

     6.3 LESSEE'S COMPLIANCE WITH LAW. Except as otherwise provided in this
Lease, Lessee shall, at Lessee's sole cost and expense, fully, diligently and in
a timely manner, comply with all "APPLICABLE LAW," which term is used in this
Lease to include all laws, rules, regulations, ordinances, directives,
covenants, easements and restrictions of record, permits, the requirements of
any applicable fire insurance underwriter or rating bureau, and the
recommendations of Lessor's engineers and/or consultants, relating in any manner
to the Premises (including but not limited to matters pertaining to (i)
industrial hygiene, (ii) environmental conditions on, in, under or about the
Premises, including soil and groundwater conditions, and (iii) the use,
generation, manufacture, production, installation, maintenance, removal,
transportation, storage, spill or release of any Hazardous Substance or storage
tank), now in effect or which may hereafter come into effect, and whether or not
reflecting a change in policy from any previously existing policy. Lessee shall,
within five (5) days after receipt of Lessor's written request, provide Lessor
with copies of all documents and information, including, but not limited to,
permits, registrations, manifests, applications, reports and certificates,
evidencing Lessee's compliance with any Applicable Law specified by Lessor, and
shall immediately upon receipt, notify Lessor in writing (with copies of any
documents involved) of any threatened or actual claim, notice, citation,
warning, complaint or report pertaining to or involving failure by Lessee or the
Premises to comply with any Applicable Law.

     6.4 INSPECTION; COMPLIANCE. Lessor and Lessor's Lender(s) (as defined in
Paragraph 8.3(a)) shall have the right to enter the Premises at any time, in the
case of an emergency, and otherwise at reasonable times, for the purpose of
inspecting the condition of the Premises and for verifying compliance by Lessee
with this Lease and all Applicable Laws (as defined in Paragraph 6.3), and to
employ experts and/or consultants in connection therewith and/or to advise
Lessor with respect to Lessee's activities, including but not limited to the
installation, operation, use, monitoring, maintenance, or removal of any
Hazardous Substance or storage tank on or from the Premises. The costs and
expenses of any such inspections shall be paid by the party requesting same,
unless a Default or Breach of this Lease, violation of Applicable Law, or a
contamination, caused or materially contributed to by Lessee is found to exist
or be imminent, or unless the inspection is requested or ordered by a
governmental authority as the result of any such existing or imminent violation
or contamination. In any such case, Lessee shall upon request reimburse Lessor
or Lessor's Lender, as the case may be, for the costs and expenses of such
inspections.

7.   MAINTENANCE; REPAIRS; UTILITY INSTALLATIONS; TRADE FIXTURES AND
     ALTERATIONS.

     7.1 LESSEE'S OBLIGATIONS.

     (a) Subject to the provisions of Paragraphs 7.2 (Lessor's obligations to
repair), 9 (damage and destruction), and 14 (condemnation), Lessee shall, at
Lessee's sole cost and expense and at all times, keep the Premises and every
part thereof in good order, condition and repair, structural and non-structural
(whether or not such portion of the Premises requiring

NET                                  PAGE 5                       Initials _____
<PAGE>

repair, or the means of repairing the same, are reasonably or readily accessible
to Lessee, and whether or not the need for such repairs occurs as a result of
Lessee's use, any prior use, the elements or the age of such portion of the
Premises), including, without limiting the generality of the foregoing, all
equipment or facilities serving the Premises, such as plumbing, heating, air
conditioning, ventilating, electrical, lighting facilities, boilers, fired or
unfired pressure vessels, fire sprinkler and/or standpipe and hose or other
automatic fire extinguishing system, including fire alarm and/or smoke detection
systems and equipment, fire hydrants, fixtures, walls (interior and exterior),
foundations, ceilings, roofs, floors, windows, doors, plate glass, skylights,
landscaping, driveways, parking lots, fences, retaining walls, signs, sidewalks
and parkways located in, on, about, or adjacent to the Premises. Lessee shall
not cause or permit any Hazardous Substance to be spilled or released in, on,
under or about the Premises (including through the plumbing or sanitary sewer
system) and shall promptly, at Lessee's expense, take all investigatory and/or
remedial action reasonably recommended, whether or not formally ordered or
required, for the cleanup of any contamination of, and for the maintenance,
security and/or monitoring of, the Premises, the elements surrounding same, or
neighboring properties, that was caused or materially contributed to by Lessee,
or pertaining to or involving any Hazardous Substance and/or storage tank
brought onto the Premises by or for Lessee or under its control. Lessee in
keeping the Premises in good order, condition, and repair, shall exercise and
perform good maintenance practices. Lessee's obligations shall include
restorations, replacements or renewals when necessary to keep the Premises and
all improvements thereon or a part thereof in good order, condition and state of
repair. If Lessee occupies the Premises for seven (7) years or more, Lessor may
require Lessee to repaint the exterior of the buildings on the Premises as
reasonably required, but not more frequently than once every seven (7) years.

     (b) Lessee shall, at Lessee's sole cost and expense, procure and maintain
contracts, with copies to Lessor, in customary form and substance for, and with
contractors specializing and experienced in, the inspection, maintenance and
service of the following equipment and improvements, if any, located on the
Premises: (i) heating, air conditioning and ventilation equipment, (ii) boiler,
fired or unfired pressure vessels, (iii) fire sprinkler and/or standpipe and
hose or other automatic fire extinguishing systems, including fire alarm and/or
smoke detection, (iv) landscaping and irrigation systems, (v) roof covering and
drain maintenance and (vi) asphalt and parking lot maintenance.

     7.2 LESSOR'S OBLIGATIONS. Except for the warranties and agreements of
Lessor contained in Paragraphs 9 (relating to destruction of the Premises), 14
(relating to condemnation of the Premises), and as expressly provided in this
Section 7.2, it is intended by the Parties hereto that Lessor have no
obligation, in any manner whatsoever, to repair and maintain the Premises, the
improvements located thereon, or the equipment therein, whether structural or
non structural, all of which obligations are intended to be that of the Lessee
under Paragraph 7.1 hereof. It is the intention of the Parties that the terms of
this Lease govern the respective obligations of the Parties as to maintenance
and repair of the Premises. Lessee and Lessor expressly waive the benefit of any
statute now or hereafter in effect to the extent it is inconsistent with the
terms of this Lease with respect to, or which affords Lessee the right to make
repairs at the expense of Lessor or to terminate this Lease by reason of, any
needed repairs. Notwithstanding anything to the contrary contained in this
Lease, Lessee shall have no obligation to perform any obligation set forth
herein with respect to the maintenance and repair of the Premises if the
performance

NET                                  PAGE 6                       Initials _____
<PAGE>

thereof would require that Lessee incur expenses for capital repairs,
replacements or improvements.

     7.3 UTILITY INSTALLATIONS; TRADE FIXTURES; ALTERATIONS.

     (a) DEFINITIONS; CONSENT REQUIRED. The term "UTILITY INSTALLATIONS" is used
in this Lease to refer to all carpeting, window coverings, air lines, power
panels, electrical distribution, security, fire protection systems,
communication systems, lighting fixtures, heating, ventilating, and air
conditioning equipment, plumbing, and fencing in, on or about the Premises. The
term "TRADE FIXTURES" shall mean Lessee's machinery and equipment that can be
removed without doing material damage to the Premises. The term "ALTERATIONS"
shall mean any modification of the improvements on the Premises from that which
are provided by Lessor under the terms of this Lease, other than Utility
Installations or Trade Fixtures, whether by addition or deletion. "LESSEE OWNED
ALTERATIONS AND/OR UTILITY INSTALLATIONS" are defined as Alterations and/or
Utility Installations made by Lessee that are not yet owned by Lessor as defined
in Paragraph 74(a). Lessee shall not make any Alterations or Utility
Installations in, on, under or about the Premises without Lessor's prior written
consent. Lessee may, however, make non-structural Utility Installations to the
interior of the Premises (excluding the roof) as long as they are not visible
from the outside, do not involve puncturing, relocating or removing the roof or
any existing walls, and the cumulative cost thereof during the term of this
Lease as extended does not exceed $25,000.

     (b) CONSENT. Any Alterations or Utility Installations that Lessee shall
desire to make and which require the consent of the Lessor shall be presented to
Lessor in written form with proposed detailed plans. All consents given by
Lessor, whether by virtue of Paragraph 7.3(a) or by subsequent specific consent,
shall be deemed conditioned upon: (i) Lessee's acquiring all applicable permits
required by governmental authorities, (ii) the furnishing of copies of such
permits together with a copy of the plans and specifications for the Alteration
or Utility Installation to Lessor prior to commencement of the work thereon, and
(iii) the compliance by Lessee with all conditions of said permits in a prompt
and expeditious manner. Any Alterations or Utility Installations by Lessee
during the term of this Lease shall be done in a good and workmanlike manner,
with good and sufficient materials, and in compliance with all Applicable Law.
Lessee shall promptly upon completion thereof furnish Lessor with as-built plans
and specifications therefor. Lessor may (but without obligation to do so)
condition its consent to any requested Alteration or Utility Installation that
costs $10,000 or more upon Lessee's providing Lessor with a lien and completion
bond in an amount equal to one and one-half times the estimated cost of such
Alteration or Utility Installation and/or upon Lessee's posting an additional
Security Deposit with Lessor under Paragraph 36 hereof.

     (c) INDEMNIFICATION. Lessee shall pay, when due, all claims for labor or
materials furnished or alleged to have been furnished to or for Lessee at or for
use on the Premises, which claims are or may be secured by any mechanics' or
materialmen's lien against the Premises or any interest therein. Lessee shall
give Lessor not less than ten (10) days' notice prior to the commencement of any
work in, on or about the Premises, and Lessor shall have the right to post
notices of non-responsibility in or on the Premises as provided by law. If
Lessee shall, in good faith, contest the validity of any such lien, claim or
demand, then Lessee shall, at its sole expense defend and protect itself, Lessor
and the Premises against the same and shall pay

NET                                  PAGE 7                       Initials _____
<PAGE>

and satisfy any such adverse judgment that may be rendered thereon before the
enforcement thereof against the Lessor or the Premises. If Lessor shall require,
Lessee shall furnish to Lessor a surety bond satisfactory to Lessor in an amount
equal to one and one-half times the amount of such contested lien claim or
demand, indemnifying Lessor against liability for the same, as required by law
for the holding of the Premises free from the effect of such lien or claim. In
addition, Lessor may require Lessee to pay Lessor's attorney's fees and costs in
participating in such action if Lessor shall decide it is to its best interest
to do so.

     7.4 OWNERSHIP; REMOVAL; SURRENDER; AND RESTORATION.

     (a) OWNERSHIP. Subject to Lessor's right to require the removal or become
the owner thereof as hereinafter provided in this Paragraph 7.4, all Alterations
and Utility Additions made to the Premises by Lessee shall be the property of
and owned by Lessee, but considered a part of the Premises. Lessor may, at any
time and at its option, elect in writing to Lessee to be the owner of all or any
specified part of the Lessee Owned Alterations, without cost or expense to
Lessor, and Utility Installations. Unless otherwise instructed per subparagraph
7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at
the expiration or earlier termination of this Lease, become the property of
Lessor and remain upon and be surrendered by Lessee with the Premises.

     (b) REMOVAL. Unless otherwise agreed in writing, Lessor may require that
any or all Lessee Owned Alterations or Utility Installations be removed by the
expiration or earlier termination of this Lease, notwithstanding their
installation may have been consented to by Lessor. Lessor may require the
removal at any time of all or any part of any Lessee Owned Alterations or
Utility Installations made without the required consent of Lessor.

     (c) SURRENDER/RESTORATION. Lessee shall surrender the Premises by the end
of the last day of the Lease term or any earlier termination date, with all of
the improvements, parts and surfaces thereof clean and free of debris and in
good operating order, condition and state of repair, ordinary wear and tear
excepted. "ORDINARY WEAR AND TEAR" shall not include any damage or deterioration
that would have been prevented by good maintenance practice or by Lessee
performing all of its obligations under this Lease. Except as otherwise agreed
or specified in writing by Lessor, the Premises, as surrendered, shall include
the Utility Installations. The obligation of Lessee shall include the repair of
any damage occasioned by the installation, maintenance or removal of Lessee's
Trade Fixtures, furnishings, equipment, and Alterations and/or Utility
Installations, as well as the removal of any storage tank installed by or for
Lessee, and the removal, replacement, or remediation of any soil, material or
ground water contaminated by Lessee, all as may then be required by Applicable
Law and/or good practice. Lessee's Trade Fixtures shall remain the property of
Lessee and shall be removed by Lessee subject to its obligation to repair and
restore the Premises per this Lease.

8.   INSURANCE; INDEMNITY.

     8.1 PAYMENT FOR INSURANCE. Regardless of whether the Lessor or Lessee is
the Insuring Party, Lessee shall pay for all insurance required under this
Paragraph 8 except to the extent of the cost attributable to liability insurance
carried by Lessor in excess of $2,000,000 per occurrence. Premiums for policy
periods commencing prior to or extending beyond the Lease

NET                                  PAGE 8                       Initials _____
<PAGE>

term shall be prorated to correspond to the Lease term. Payment shall be made by
Lessee to Lessor within ten (10) days following receipt of an invoice for any
amount due.

     8.2 LIABILITY INSURANCE.

     (a) CARRIED BY LESSEE. Lessee shall obtain and keep in force during the
term of this Lease a Commercial General Liability policy of insurance protecting
Lessee and Lessor (as an additional insured) against claims for bodily injury,
personal injury and property damage based upon, involving or arising out of the
ownership, use, occupancy or maintenance of the Premises and all areas
appurtenant thereto. Such insurance shall be on an occurrence basis providing
single limit coverage in an amount not less than $1,000,000 per occurrence and
$2,000,000 in the aggregate, with an "Additional Insured-Managers or Lessors of
Premises" Endorsement and contain the "Amendment of the Pollution Exclusion" for
damage caused by heat, smoke or fumes from a hostile fire. The policy shall not
contain any intra-insured exclusions as between insured persons or
organizations, but shall include coverage for liability assumed under this Lease
as an "insured contract" for the performance of Lessee's indemnity obligations
under this Lease. The limits of said insurance required by this Lease or as
carried by Lessee shall not, however, limit the liability of Lessee nor relieve
Lessee of any obligation hereunder. All insurance to be carried by Lessee shall
be primary to and not contributory with any similar insurance carried by Lessor,
whose insurance shall be considered excess insurance only.

     (b) CARRIED BY LESSOR. In the event Lessor is the Insuring Party, Lessor
shall also maintain liability insurance described in Paragraph 8.2(a), above, in
addition to, and not in lieu of, the insurance required to be maintained by
Lessee. Lessee shall not be named as an additional insured therein.

     8.3 PROPERTY INSURANCE--BUILDING, IMPROVEMENTS AND RENTAL VALUE.

     (a) BUILDING AND IMPROVEMENTS. The Insuring Party shall obtain and keep in
force during the term of this Lease a policy or policies in the name of Lessor,
with loss payable to Lessor and to the holders of any mortgages, deeds of trust
or ground leases on the Premises ("LENDER(S)"), insuring loss or damage to the
Premises. The amount of such insurance shall be equal to the full replacement
cost of the Premises, as the same shall exist from time to time, or the amount
required by Lenders, but in no event more than the commercially reasonable and
available insurable value thereof if, by reason of the unique nature or age of
the improvements involved, such latter amount is less than full replacement
cost. If Lessor is the Insuring Party, however, Lessee Owned Alterations and
Utility Installations shall be insured by Lessee under Paragraph 8.4 rather than
by Lessor. If the coverage is available and commercially appropriate, such
policy or policies shall insure against all risks of direct physical loss or
damage (except the perils of flood and/or earthquake unless required by a
Lender), including coverage for any additional costs resulting from debris
removal and reasonable amounts of coverage for the enforcement of any ordinance
or law regulating the reconstruction or replacement of any undamaged sections of
the Premises required to be demolished or removed by reason of the enforcement
of any building, zoning, safety or land use laws as the result of a covered
cause of loss. Said policy or policies shall also contain an agreed valuation
provision in lieu of any coinsurance clause, waiver of subrogation, and
inflation guard protection causing an increase in

NET                                  PAGE 9                       Initials _____
<PAGE>

the annual property insurance coverage amount by a factor of not less than the
adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers
for the city nearest to where the Premises are located. If such insurance
coverage has a deductible clause, the deductible amount shall not exceed $10,000
per occurrence, and Lessee shall be liable for such deductible amount in the
event of an Insured Loss, as defined in Paragraph 9.1(c).

     (b) RENTAL VALUE. The Insuring Party shall, in addition, obtain and keep in
force during the term of this Lease a policy or policies in the name of Lessor,
with loss payable to Lessor and Lender(s), insuring the loss of the full rental
and other charges payable by Lessee to Lessor under this Lease for one (1) year
(including all real estate taxes, insurance costs, and any scheduled rental
increases). Said insurance shall provide that in the event the Lease is
terminated by reason of an insured loss, the period of indemnity for such
coverage shall be extended beyond the date of the completion of repairs or
replacement of the Premises, to provide for one full year's loss of rental
revenues from the date of any such loss. Said insurance shall contain an agreed
valuation provision in lieu of any coinsurance clause, and the amount of
coverage shall be adjusted annually to reflect the projected rental income,
property taxes, insurance premium costs and other expenses, if any, otherwise
payable by Lessee, for the next twelve (12) month period. Lessee shall be liable
for any deductible amount in the event of such loss.

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

     (d) TENANT'S IMPROVEMENTS. If the Lessor is the Insuring Party, the Lessor
shall not be required to insure Lessee Owned Alterations and Utility
Installations unless the item in question has become the property of Lessor
under the terms of this Lease. If Lessee is the Insuring Party, the policy
carried by Lessee under this Paragraph 8.3 shall insure Lessee Owned Alterations
and Utility installations.

     8.4 LESSEE'S PROPERTY INSURANCE. Subject to the requirements of Paragraph
8.5, Lessee at its cost shall either by separate policy or, at Lessor's option,
by endorsement to a policy already carried, maintain insurance coverage on all
of Lessee's personal property, Lessee Owned Alterations and Utility
Installations in, on, or about the Premises similar in coverage to that carried
by the Insuring Party under Paragraph 8.3. Such insurance shall be full
replacement cost coverage with a deductible of not to exceed $10,000 per
occurrence. The proceeds from any such insurance shall be used by Lessee for the
replacement of personal property or the restoration of Lessee Owned Alterations
and Utility Installations. Lessee shall be the Insuring Party with respect to
the insurance required by this Paragraph 8.4 and shall provide Lessor with
written evidence that such insurance is in force.

     8.5 INSURANCE POLICIES. Insurance required hereunder shall be in companies
duly licensed to transact business in the state where the Premises are located,
and maintaining during the policy term a "General Policyholders Rating" of at
least B+, V, or such other rating as may be required by Lender having a lien on
the Premises, as set forth in the most current issue of

NET                                 PAGE 10                       Initials _____
<PAGE>

"Best's Insurance Guide," Lessee shall not do or permit to be done anything
which shall invalidate the insurance policies referred to in this Paragraph 8.
If Lessee is the Insuring Party, Lessee shall cause to be delivered to Lessor
certified copies of policies of such insurance or certificates evidencing the
existence and amounts of such insurance with the insureds and loss payable
clauses as required by this Lease. No such policy shall be cancellable or
subject to modification except after thirty (30) days prior written notice to
Lessor. Lessee shall at least thirty (30) days prior to the expiration of such
policies, furnish Lessor with evidence of renewals or "insurance binders"
evidencing renewal thereof, or Lessor may order such insurance and charge the
cost thereof to Lessee, which amount shall be payable by Lessee to Lessor upon
demand. If the Insuring Party shall fail to procure and maintain the insurance
required to be carried by the Insuring Party under this Paragraph 8, the other
Party may, but shall not be required to, procure and maintain the same, but at
Lessee's expense.

     8.6 WAIVER OF SUBROGATION. Without affecting any other rights or remedies,
Lessee and Lessor ("WAIVING PARTY") each hereby release and relieve the other,
and waive their entire right to recover damages (whether in contract or in tort)
against the other, for loss of or damage to the Waiving Party's property arising
out of or incident to the perils required to be insured against under Paragraph
8. The effect of such releases and waivers of the right to recover damages shall
not be limited by the amount of insurance carried or required, or by any
deductibles applicable thereto.

     8.7 INDEMNITY. Except for Lessor's negligence and/or breach of express
warranties, Lessee shall indemnify, protect, defend and hold harmless the
Premises, Lessor and its agents, Lessor's master or ground lessor, partners and
Lenders, for, from and against any and all claims, loss of rents and/or damages,
costs, liens, judgments, penalties, permits, attorney's and consultant's fees,
expenses and/or liabilities arising out of, involving, or in dealing with, the
occupancy of the Premises by Lessee, the conduct of Lessee's business, any act,
omission or neglect of Lessee, its agents, contractors, employees or invitees,
and out of any Default or Breach by Lessee in the performance in a timely manner
of any obligation on Lessee's part to be performed under this Lease. The
foregoing shall include, but not be limited to, the defense or pursuit of any
claim or any action or proceeding involved therein, and whether or not (in the
case of claims made against Lessor) litigated and/or reduced to judgment, and
whether well founded or not. In case any action or proceeding be brought against
Lessor by reason of any of the foregoing matters, Lessee upon notice from Lessor
shall defend the same at Lessee's expense by counsel reasonably satisfactory to
Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not
have first paid any such claim in order to be so indemnified.

     8.8 EXEMPTION OF LESSOR FROM LIABILITY. Lessor shall not be liable for
injury or damage to the person or goods, wares, merchandise or other property of
Lessee, Lessee's employees, contractors, invitees, customers, or any other
person in or about the Premises, whether such damage or injury is caused by or
results from fire, steam, electricity, gas, water or rain, or from the breakage,
leakage, obstruction or other defects of pipes, fire sprinklers, wires,
appliances, plumbing, air conditioning or lighting fixtures, or from any other
cause, whether the said injury or damage results from conditions arising upon
the Premises or upon other portions of the building of which the Premises are a
part, or from other sources or places, and regardless of whether the cause of
such damage or injury or the means of repairing the same is accessible or not.
Lessor shall not be liable for any damages arising from any act or neglect of
any other

NET                                 PAGE 11                       Initials _____
<PAGE>

tenant of Lessor. Notwithstanding Lessor's negligence or breach of this Lease,
Lessor shall under no circumstances be liable for injury to Lessee's business or
for any loss of income or profit therefrom.

9.   DAMAGE OR DESTRUCTION.

     9.1 DEFINITIONS.

     (a) "PREMISES PARTIAL DAMAGE" shall mean damage or destruction to the
improvements on the Premises, other than Lessee Owned Alterations and Utility
Installations, the repair cost of which damage or destruction is less than 50%
of the then Replacement Cost of the Premises immediately prior to such damage or
destruction, excluding from such calculation the value of the land and Lessee
Owned Alterations and Utility Installations.

     (b) "PREMISES TOTAL DESTRUCTION" shall mean damage or destruction to the
Premises, other than Lessee Owned Alterations and Utility Installations the
repair cost of which damage or destruction is 50% or more of the then
Replacement Cost of the Premises immediately prior to such damage or
destruction, excluding from such calculation the value of the land and Lessee
Owned Alterations and Utility Installations.

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

     (d) "REPLACEMENT COST" shall mean the cost to repair or rebuild the
improvements owned by Lessor at the time of the occurrence to their condition
existing immediately prior thereto, including demolition, debris removal and
upgrading required by the operation of applicable building codes, ordinances or
laws, and without deduction for depreciation.

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

     9.2 PARTIAL DAMAGE-INSURED LOSS. If a Premises Partial Damage that is an
Insured Loss occurs, then Lessor shall, at Lessor's expense, repair such damage
(but not Lessee's Trade Fixtures or Lessee Owned Alterations and Utility
Installations) as soon as reasonably possible and this Lease shall continue in
full force and effect; provided, however, that Lessee shall, at Lessor's
election, make the repair of any damage or destruction the total cost to repair
of which is $10,000 or less, and, in such event, Lessor shall make the insurance
proceeds available to Lessee on a reasonable basis for that purpose.
Notwithstanding the foregoing, if the required insurance was not in force or the
insurance proceeds are not sufficient to effect such repair, the Insuring Party
shall promptly contribute the shortage in proceeds (except as to the deductible
which is Lessee's responsibility) as and when required to complete said repairs.
In the event, however, the shortage in proceeds was due to the fact that, by
reason of the unique nature of the improvements, full replacement cost insurance
coverage was not commercially reasonable and available, Lessor shall have no
obligation to pay for the shortage in insurance proceeds or to

NET                                 PAGE 12                       Initials _____
<PAGE>

fully restore the unique aspects of the Premises unless Lessee provides Lessor
with the funds to cover same, or adequate assurance thereof, within ten (10)
days following receipt of written notice of such shortage and request therefor.
If Lessor receives said funds or adequate assurance thereof within said ten (10)
day period, the party responsible for making the repairs shall complete them as
soon as reasonably possible and this Lease shall remain in full force and
effect. If Lessor does not receive such funds or assurance within said period,
Lessor may nevertheless elect by written notice to Lessee within ten (10) days
thereafter to make such restoration and repair as is commercially reasonable
with Lessor paying any shortage in proceeds, in which case this Lease shall
remain in full force and effect. If in such case Lessor does not so elect, then
this Lease shall terminate as of the date of occurrence of the damage or
destruction. Unless otherwise agreed, Lessee shall in no event have any right to
reimbursement from Lessor for any funds contributed by Lessee to repair any such
damage or destruction. Premises Partial Damage due to flood or earthquake shall
be subject to Paragraph 9.3 rather than Paragraph 9.2, notwithstanding that
there may be some insurance coverage, but the net proceeds of any such insurance
shall be made available for the repairs if made by either Party.

     9.3 PARTIAL DAMAGE-UNINSURED LOSS. If a Premises Partial Damage that is not
an Insured Loss occurs, unless caused by the sole negligence or willful
misconduct of Lessee (in which event Lessee shall make the repairs at Lessee's
expense and this Lease shall continue in full force and effect, but subject to
Lessor's rights under Paragraph 13), Lessor may at Lessor's option, either: (i)
repair such damage as soon as reasonably possible at Lessor's expense, in which
event this Lease shall continue in full force and effect, or (ii) give written
notice to Lessee within thirty (30) days after receipt by Lessor of knowledge of
the occurrence of such damage of Lessor's desire to terminate this Lease as of
the date of the occurrence of such damage. In the event Lessor elects to give
such notice of Lessor's intention to terminate this Lease, Lessee shall have the
right within ten (10) days after the receipt of such notice to give written
notice to Lessor of Lessee's commitment to pay for the repair of such damage
totally at Lessee's expense and without reimbursement from Lessor. Lessee shall
provide Lessor with the required funds or satisfactory assurance thereof within
thirty (30) days following Lessee's said commitment. In such event this Lease
shall continue in full force and effect, and Lessor shall proceed to make such
repairs as soon as reasonably possible and the required funds are available. If
Lessee does not give such notice and provide the funds or assurance thereof
within the times specified above, this Lease shall terminate as of the date
specified in Lessor's notice of termination.

     9.4 TOTAL DESTRUCTION. Notwithstanding any other provision hereof, if a
Premises Total Destruction occurs (including any destruction required by any
authorized public authority), this Lease shall terminate as of the date of such
Premises Total Destruction, whether or not the damage or destruction is an
Insured Loss or was caused by a negligent or willful act of Lessee. In the
event, however, that the damage or destruction was caused by Lessee, Lessor
shall have the right to recover Lessor's damages from Lessee except as released
and waived in Paragraph 8.6.

     9.5 DAMAGE NEAR END OF TERM. If at any time during the last six (6) months
of the term of this Lease there is damage for which the cost to repair exceeds
one (1) month's Base Rent, whether or not an Insured Loss, Lessor may, at
Lessor's option, terminate this Lease effective as of the date of the occurrence
of such damage by giving written notice to Lessee of Lessor's election to do so
within thirty (30) days after the date of occurrence of such damage.

NET                                 PAGE 13                       Initials _____
<PAGE>

Provided, however, if Lessee at that time has an exercisable option to extend
this Lease or to purchase the Premises, then Lessee may preserve this Lease by,
within twenty (20) days following the occurrence of the damage, or before the
expiration of the time provided in such option for its exercise, whichever is
earlier ("EXERCISE PERIOD"), (i) exercising such option and (ii) providing
Lessor with any shortage in insurance proceeds (or adequate assurance thereof)
needed to make the repairs. If Lessee duly exercises such option during said
Exercise Period and provides Lessor with funds (or adequate assurance thereof)
to cover any shortage in insurance proceeds, Lessor shall, at Lessor's expense
repair such damage as soon as reasonably possible and this Lease shall continue
in full force and effect. If Lessee fails to exercise such option and provide
such funds or assurance during said Exercise Period, then Lessor may at Lessor's
option terminate this Lease as of the date of the occurrence of such damage by
giving written notice to Lessee of Lessor's election to do so within ten (10)
days after the expiration of the Exercise Period, notwithstanding any term or
provision in the grant of option to the contrary.

     9.6 ABATEMENT OF RENT; LESSEE'S REMEDIES.

     (a) In the event of damage described in Paragraph 9.2 (Partial
Damage-Insured), Paragraph 9.3 and Paragraph 9.5, whether or not Lessor or
Lessee repairs or restores the Premises, the Base Rent, Real Property Taxes,
insurance premiums, and other charges, if any, payable by Lessee hereunder for
the period during which such damage, its repair or the restoration continues
(not to exceed the period for which rental value insurance is required under
Paragraph 8.3(b)), shall be abated in proportion to the degree to which Lessee's
use of the Premises is impaired. Except for abatement of Base Rent, Real
Property Taxes, insurance premiums, and other charges, if any, as aforesaid, all
other obligations of Lessee hereunder shall be performed by Lessee, and Lessee
shall have no claim against Lessor for any damage suffered by reason of any such
repair or restoration.

     (b) If Lessor shall be obligated to repair or restore the Premises under
the provisions of this Paragraph 9 and shall not commence, in a substantial and
meaningful way, the repair or restoration of the Premises within ninety (90)
days after such obligation shall accrue, Lessee may, at any time prior to the
commencement of such repair or restoration, give written notice to Lessor and to
any Lenders of which Lessee has actual notice of Lessee's election to terminate
this Lease on a date not less than sixty (60) days following the giving of such
notice. If Lessee gives such notice to Lessor and such Lenders and such repair
or restoration is not commenced within thirty (30) days after receipt of such
notice, this Lease shall terminate as of the thirty-first (31st) day after said
notice. If Lessor or a Lender commences the repair or restoration of the
Premises within thirty (30) days after receipt of such notice, this Lease shall
continue in full force and effect. "COMMENCE" as used in this Paragraph shall
mean either the unconditional authorization of the preparation of the required
plans, or the beginning of the actual work on the Premises, whichever first
occurs.

     9.7 HAZARDOUS SUBSTANCE CONDITIONS. If a Hazardous Substance Condition
occurs, unless Lessee is legally responsible therefor (in which case Lessee
shall make the investigation and remediation thereof required by Applicable Law
and this Lease shall continue in full force and effect, but subject to Lessor's
rights under Paragraph 13), Lessor may at Lessor's option either (i) investigate
and remediate such Hazardous Substance Condition, if required, as soon as
reasonably possible at Lessor's expense, in which event this Lease shall
continue in full force

NET                                 PAGE 14                       Initials _____
<PAGE>

and effect, or (ii) if the estimated cost to investigate and remediate such
condition exceeds twelve (12) times the then monthly Base Rent or $100,000,
whichever is greater, give written notice to Lessee within thirty (30) days
after receipt by Lessor of knowledge of the occurrence of such Hazardous
Substance Condition of Lessor's desire to terminate this Lease as of the date
sixty (60) days following the giving of such notice. In the event Lessor elects
to give such notice of Lessor's intention to terminate this Lease, Lessee shall
have the right within ten (10) days after the receipt of such notice to give
written notice to Lessor of Lessee's commitment to pay for the investigation and
remediation of such Hazardous Substance Condition totally at Lessee's, expense
and without reimbursement from Lessor except to the extent of an amount equal to
twelve (12) times the then monthly Base Rent or $100,000, whichever is greater,
Lessee shall provide Lessor with the funds required of Lessee or satisfactory
assurance thereof within thirty (30) days following Lessee's said commitment. In
such event this Lease shall continue in full force and effect, and Lessor shall
proceed to make such investigation and remediation as soon as reasonably
possible and the required funds are available. If Lessee does not give such
notice and provide the required funds or assurance thereof within the times
specified above, this Lease shall terminate as of the date specified in Lessor's
notice of termination. If a Hazardous Substance Condition occurs for which
Lessee is not legally responsible, there shall be abatement of Lessee's
obligations under this Lease to the same extent as provided in Paragraph 9.6(a)
for a period of not to exceed twelve months.

     9.8 TERMINATION-ADVANCE PAYMENTS. Upon termination of this Lease pursuant
to this Paragraph 9, an equitable adjustment shall be made concerning advance
Base Rent and any other advance payments made by Lessee to Lessor. Lessor shall,
in addition, return to Lessee so much of Lessee's Security Deposit as has not
been or is not then required to be, used by Lessor under the terms of this
Lease.

     9.9 WAIVE STATUTES. Lessor and Lessee agree that the terms of this Lease
shall govern the effect of any damage to or destruction of the Premises with
respect to the termination of this Lease and hereby waive the provisions of any
present or future statute to the extent inconsistent herewith.

10.  REAL PROPERTY TAXES.

     10.1 (a) PAYMENT OF TAXES. Lessee shall pay the Real Property Taxes, as
defined in Paragraph 10.2, applicable to the Premises during the term of this
Lease. Subject to Paragraph 10.1(b), all such payments shall be made at least
ten (10) days prior to the delinquency date of the applicable installment.
Lessee shall promptly furnish Lessor with satisfactory evidence that such taxes
have been paid. If any such taxes to be paid by Lessee shall cover any period of
time prior to or after the expiration or earlier termination of the term hereof,
Lessee's share of such taxes shall be equitably prorated to cover only the
period of time within the tax fiscal year this Lease is in effect and Lessor
shall reimburse Lessee for any overpayment after such proration. If Lessee shall
fail to pay any Real Property Taxes required by this Lease to be paid by Lessee,
Lessor shall have the right to pay the same, and Lessee shall reimburse Lessor
therefor upon demand.

     (b) ADVANCE PAYMENT. In order to insure payment when due and before
delinquency of any or all Real Property Taxes, Lessor reserves the right, at
Lessor's option, to

NET                                 PAGE 15                       Initials _____
<PAGE>

estimate the current Real Property Taxes applicable to the Premises, and to
require such current year's Real Property Taxes to be paid in advance to Lessor
by Lessee, either: in a lump sum amount equal to the installment due, at least
twenty (20) days prior to the applicable delinquency date, or monthly in advance
with the payment of the Base Rent. If Lessor elects to require payment monthly
in advance, the monthly payment shall be that equal monthly amount which, over
the number of months remaining before the month in which the applicable tax
installment would become delinquent (and without interest thereon), would
provide a fund large enough to fully discharge before delinquency the estimated
installment of taxes to be paid. When the actual amount of the applicable tax
bill is known, the amount of such equal monthly advance payment shall be
adjusted as required to provide the fund needed to pay the applicable taxes
before delinquency. If the amounts paid to Lessor by Lessee under the provisions
of this Paragraph are insufficient to discharge the obligations of Lessee to pay
such Real Property Taxes as the same become due, Lessee shall pay to Lessor,
upon Lessor's demand, such additional sums as are necessary to pay such
obligations. All moneys paid to Lessor under this Paragraph may be intermingled
with other moneys of Lessor and shall not bear interest. In the event of a
Breach by Lessee in the performance of the obligations of Lessee under this
Lease, then any balance of funds paid to Lessor under the provisions of this
Paragraph may, subject to proration as provided in Paragraph 10.1(a), at the
option of Lessor, be treated as an additional Security Deposit under Paragraph
5.

     10.2 DEFINITION OF "REAL PROPERTY TAXES." As used herein, the term "REAL
PROPERTY TAXES" shall include any form of real estate tax or assessment,
general, special, ordinary or extraordinary, and any license fee, commercial
rental tax, improvement bond or bonds, levy or tax (other than inheritance,
personal income or estate taxes) imposed upon the Premises by any authority
having the direct or indirect power to tax, including any city, state or federal
government, or any school, agricultural, sanitary, fire, street, drainage or
other improvement district thereof, levied against any legal or equitable
interest of Lessor in the Premises or in the real property of which the Premises
are a part, Lessor's right to rent or other income therefrom, and/or Lessor's
business of leasing the Premises. The term "REAL PROPERTY TAXES" shall also
include any tax, fee, levy, assessment or charge, or any increase therein,
imposed by reason of events occurring, or changes in applicable law taking
effect, during the term of this Lease, including but not limited to a change in
the ownership of the Premises or in the improvements thereon, the execution of
this Lease, or any modification, amendment or transfer thereof, and whether or
not contemplated by the Parties.

     10.3 JOINT ASSESSMENT. If the Premises are not separately assessed,
Lessee's liability shall be an equitable proportion of the Real Property Taxes
for all of the land and improvements included within the tax parcel assessed,
such proportion to be determined by Lessor from the respective valuations
assigned in the assessor's work sheets or such other information as may be
reasonably available. Lessor's reasonable determination thereof, in good faith,
shall be conclusive.

     10.4 PERSONAL PROPERTY TAXES. Lessee shall pay prior to delinquency all
taxes assessed against and levied upon Lessee Owned Alterations, Utility
Installations, Trade Fixtures, furnishings, equipment and all personal property
of Lessee contained in the Premises or elsewhere. When possible, Lessee shall
cause its Trade Fixtures, furnishings, equipment and all other personal property
to be assessed and billed separately from the real property of Lessor. If

NET                                 PAGE 16                       Initials _____
<PAGE>

any of Lessee's said personal property shall be assessed with Lessor's real
property, Lessee shall pay Lessor the taxes attributable to Lessee within ten
(10) days after receipt of a written statement setting forth the taxes
applicable to Lessee's property or, at Lessor's option, as provided in Paragraph
10.1(b).

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

12.  ASSIGNMENT AND SUBLETTING.

     12.1 LESSOR'S CONSENT REQUIRED.

     (a) Lessee shall not voluntarily or by operation of law assign, transfer,
mortgage or otherwise transfer or encumber (collectively, "ASSIGNMENT") or
sublet all or any part of Lessee's interest in this Lease or in the Premises
without Lessor's prior written consent given under and subject to the terms of
Paragraph 36.

     (b) Intentionally Omitted.

     (c) Notwithstanding anything to the contrary set forth above, Lessee may
assign this Lease in its entirety or sublease all or any portion of the Premises
without the prior written consent of Lessor to (1) an Affiliate (as defined
below) of Lessee, (2) any partnership, corporation or other business entity into
or with which Lessee shall be merged, converted or consolidated or to which
substantially all of Lessee's assets may be transferred, or (3) a partnership,
corporation or other business entity which is a direct successor to Lessee
owning substantially all of Lessee's business and assets provided that, in
connection with any assignment or subletting described in clauses (1), (2) and
(3) of this Section, (a) Lessee shall have notified Lessor in writing prior to
such assignment or subletting, (b) at the time thereof no Breach (as defined in
Section 13.1 below) has occurred and is continuing, (c) the proposed transferee
shall deliver to Lessor a written agreement whereby it expressly assumes all of
the Lessee's obligations under this Lease; provided, however, that any sublessee
of less than all of the space in the Premises shall be liable only for
obligations under this Lease that are properly allocable to the space subject to
the applicable assignment or subletting (excluding, however, any obligation to
pay rent due hereunder), and (d) in case of an assignment or subletting in
connection with a transaction such as those described in clauses (2) and (3) of
this Section, Lessee shall have provided Lessor with evidence reasonably
acceptable to Lessor that the proposed assignee/sublessee has a demonstrable net
worth not less than the net worth of Lessee as of the date of such assignment of
subletting. Any assignment or subletting permitted without Lessor's prior
written consent as provided above shall not release Lessee from any of its
obligations (including, without limitation, its obligation to pay Rent) under
this Lease. For the purposes of this Section, the term "LESSEE" shall also mean
a permitted assignee or sublessee or the initial Lessee named in this Lease. As
used herein, the term "AFFILIATE" shall mean a person or entity directly or
indirectly, through one or more intermediaries, controlling, controlled by or
under common control with the party in question. The term "CONTROL", as used in
this Section, means, with respect to an entity that is a corporation, the right
to the exercise, directly or indirectly, of

NET                                 PAGE 17                       Initials _____
<PAGE>

more than 50% of the voting rights attributable to the shares of the controlled
corporation and, with respect to an entity that is not a corporation, the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of the controlled entity.

     (d) An assignment or subletting of Lessee's interest in this Lease without
Lessor's specific prior written consent shall be a Default curable after notice
per Paragraph 13.1(c). If Lessee fails to cure such Default, Lessor shall have
the right to either: (i) terminate this Lease within five (5) days after such
failure, or (ii) upon thirty (30) days written notice ("LESSOR'S NOTICE"),
increase the monthly Base Rent to fair market rental value or one hundred ten
percent (110%) of the Base Rent then in effect, whichever is greater. Pending
determination of the new fair market rental value, if disputed by Lessee, Lessee
shall pay the amount set forth in Lessor's Notice, with any overpayment credited
against the next installment of Base Rent coming due, and any underpayment for
the period retroactively to the effective date of the adjustment being due and
payable immediately upon the determination thereof.

     12.2 TERMS AND CONDITIONS APPLICABLE TO ASSIGNMENT AND SUBLETTING.

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

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

     (c) The consent of Lessor to any assignment or subletting shall not
constitute a consent to any subsequent assignment or subletting by Lessee or to
any subsequent or successive assignment or subletting by the sublessee. However,
Lessor may consent to subsequent sublettings and assignments of the sublease or
any amendments or meditations thereto without notifying Lessee or anyone else
liable on the Lease or sublease and without obtaining their consent and such
action shall not relieve such persons from liability under this Lease or
sublease.

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

     (e) Each request for consent to an assignment or subletting shall be in
writing, accompanied by information relevant to Lessor's determination as to the
financial and operational responsibility and appropriateness of the proposed
assignee or sublessee, including

NET                                 PAGE 18                       Initials _____
<PAGE>

but not limited to the intended use and/or required modification of the
Premises, if any, together with a non-refundable deposit of $1,000 or ten
percent (10%) of the current monthly Base Rent, whichever is greater, as
reasonable consideration for Lessor's considering and processing the request for
consent. Lessee agrees to provide Lessor with such other or additional
information and/or documentation as may be reasonably requested by Lessor.

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

     (g) Intentionally Omitted.

     (h) Intentionally Omitted.

     12.3 ADDITIONAL TERMS AND CONDITIONS APPLICABLE TO SUBLETTING. The
following terms and conditions shall apply to any subletting by Lessee of all or
any part of the Premises and shall be deemed included in all subleases under
this Lease whether or not expressly incorporated therein:

     (a) Lessee hereby assigns and transfers to Lessor all of Lessee's interest
in all rentals and income arising from any sublease of all or a portion of the
Premises heretofore or hereafter made by Lessee, and Lessor may collect such
rent and income and apply same toward Lessee's obligations under this Lease;
provided, however, that until a Breach (as defined in Paragraph 13.1) shall
occur in the performance of Lessee's obligations under this Lease, Lessee may,
except as otherwise provided in this Lease, receive, collect and enjoy the rents
accruing under such sublease. Lessor shall not, by reason of this or any other
assignment of such sublease to Lessor, nor by reason of the collection of the
rents from a sublessee, be deemed liable to the sublessee for any failure of
Lessee to perform and comply with any of Lessee's obligations to such sublessee
under such sublease. Lessee hereby irrevocably authorizes and directs any such
sublessee, upon receipt of a written notice from Lessor stating that a Breach
exists in the performance of Lessee's obligations under this Lease, to pay to
Lessor the rents and other charges due and to become due under the sublease.
Sublessee shall rely upon any such statement and request from Lessor and shall
pay such rents and other charges to Lessor without any obligation or right to
inquire as to whether such Breach exists and notwithstanding any notice from or
claim from Lessee to the contrary. Lessee shall have no right or claim against
said sublessee, or, until the Breach has been cured, against Lessor, for any
such rents and other charges so paid by said sublessee to Lessor.

     (b) In the event of a Breach by Lessee in the performance of its
obligations under this Lease, Lessor at its option and without any obligation to
do so, may require any sublessee to attorn to Lessor, in which event Lessor
shall undertake the obligations of the sublessor under such sublease from the
time of the exercise of said option to the expiration of such sublease;
provided, however, Lessor shall not be liable for any prepaid rents or security

NET                                 PAGE 19                       Initials _____
<PAGE>

deposit paid by such sublessee to such sublessor or for any other prior Defaults
or Breaches of such sublessor under such sublease.

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

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

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

13.  DEFAULT; BREACH; REMEDIES.

     13.1 DEFAULT; BREACH. Lessor and Lessee agree that if an attorney is
consulted by Lessor in connection with a Lessee Default or Breach (as
hereinafter defined), Lessor may include the cost of such services and costs in
said notice as rent due and payable to cure said Default. A "DEFAULT" is defined
as a failure by the Lessee to observe, comply with or perform any of the terms,
covenants, conditions or rules applicable to Lessee under this Lease. A "BREACH"
is defined as the occurrence of any one or more of the following Defaults, and,
where a grace period for cure after notice is specified herein, the failure by
Lessee to cure such Default prior to the expiration of the applicable grace
period, and shall entitle Lessor to pursue the remedies set forth in Paragraphs
13.2 and/or 13.3:

     (a) The vacating of all of the Premises without the intention to reoccupy
same, or the abandonment of all of the Premises.

     (b) Except as expressly otherwise provided in this Lease, the failure by
Lessee to make any payment of Base Rent or any other monetary payment required
to be made by Lessee hereunder, whether to Lessor or to a third party, as and
when due, the failure by Lessee to provide Lessor with reasonable evidence of
insurance or surety bond required under this Lease, or the failure of Lessee to
fulfill any obligation under this Lease which endangers or threatens life or
property, where such failure continues for a period of three (3) days following
written notice thereof by or on behalf of Lessor to Lessee.

     (c) Except as expressly otherwise provided in this Lease, the failure by
Lessee to provide Lessor with reasonable written evidence (in duly executed
original form, if applicable) of (i) compliance with applicable law per
Paragraph 6.3, (ii) the inspection, maintenance and service contracts required
under Paragraph 7.1(b), (iii) the recession of an unauthorized assignment or
subletting per Paragraph 12.1(b), (iv) a Tenancy Statement per Paragraphs 16 or
37, (v) the subordination or non-subordination of this Lease per Paragraph 30,
(vi) the guaranty of the performance of Lessee's obligations under this Lease if
required under Paragraphs 1.11 and 37, (vii) the execution of any document
requested under Paragraph 42 (easements), or (viii) any other documentation or
information which Lessor may reasonably require of Lessee under the terms of
this Lease, where any such failure continues for a period of ten (10) days
following written notice by or on behalf of Lessor to Lessee.

NET                                 PAGE 20                       Initials _____
<PAGE>

     (d) A Default by Lessee as to the terms, covenants, conditions or
provisions of this Lease, or of the rules adopted under Paragraph 40 hereof,
that are to be observed, complied with or performed by Lessee, other than those
described in subparagraphs (a), (b) or (c), above, where such Default continues
for a period of thirty (30) days after written notice thereof by or on behalf of
Lessor to Lessee; provided, however, that if the nature of Lessee's Default is
such that more than thirty (30) days are reasonably required for its cure, then
it shall not be deemed to be a Breach of this Lease by Lessee if Lessee
commences such cure within said thirty (30) day period and thereafter diligently
prosecutes such cure to completion.

     (e) The occurrence of any of the following events: (e) The making by Lessee
of any general arrangement or assignment for the benefit of creditors; (f)
Lessee's becoming "debtor" as defined in 11 U.S.C. ss. 101 or any successor
statute thereto (unless, in the case of a petition filed against Lessee, the
same is dismissed within ninety (90) days); (g) the appointment of a trustee or
receiver to take possession of substantially all of Lessee's assets located at
the premises or of Lessee's interest in this Lease, where possession is not
restored to Lessee within ninety (90) days; or (h) the attachment, execution or
other judicial seizure of substantially all of Lessee's assets located at the
Premises or of Lessee's interest in this Lease, where such seizure is not
discharged within ninety (90) days; provided, however, in the event that any
provision of this subparagraph (e) is contrary to any applicable law, such
provision shall be of no force or effect, and not affect the validity of the
remaining provisions.

     (f) The discovery by Lessor that any financial statement given to Lessor by
Lessee or any Guarantor of Lessee's obligations hereunder was materially false.

     (g) If the performance of Lessee's obligations under this Lease is
guaranteed: (i) the death of a guarantor, (j) the termination of a guarantor's
liability with respect to this Lease other than in accordance with the terms of
such guaranty (k) a guarantor's becoming insolvent or the subject of a
bankruptcy filing, (l) a guarantor's breach of its guaranty obligation on an
anticipatory breach basis, and Lessee's failure, within sixty (60) days
following written notice by or on behalf of Lessor to Lessee of any such event
to provide Lessor with written alternative assurance or security, which, when
coupled with the then existing resources of Lessee, equals or exceeds the
combined financial resources of Lessee and the guarantors that existed at the
time of execution of this Lease.

     13.2 REMEDIES. If Lessee fails to perform any affirmative duty or
obligation of Lessee under this Lease, within ten (10) days after written notice
to Lessee (or in case of an emergency, without notice), Lessor may at its option
(but without obligation to do so), perform such duty or obligation on Lessee's
behalf, including but not limited to the obtaining of reasonably required bond,
insurance policies, or governmental licenses, permits or approvals. The costs
and expenses of any such performance by Lessor shall be due and payable by
Lessee to Lessor upon invoice therefor. If any check given to Lessor by Lessee
shall not be honored by the bank upon which it is drawn, Lessor, at its option,
may require all future payments to be made under this Lease by Lessee to be made
only by cashier's check. Upon the occurrence and during the continuance of a
Breach of this Lease by Lessee, as defined in Paragraph 13.1, with or without
further notice or demand, and without limiting Lessor in the exercise of any
right or remedy which Lessor may have by reason of such Breach, Lessor may:

NET                                 PAGE 21                       Initials _____
<PAGE>

     (a) Terminate Lessee's right to possession of the Premises by any lawful
means, in which case this Lease and the term hereof shall terminate and Lessee
shall immediately surrender possession of the Premises to Lessor. In such event
Lessor shall be entitled to recover from Lessee: (m) the worth at the time of
the award of the unpaid rent which had been earned at the time of termination;
(n) the worth at the time of award of the amount by which the unpaid rent which
would have been earned after termination until the time of award exceeds the
amount of such rental loss that the Lessee proves could have been reasonably
avoided; (o) the worth at the time of award of the amount by which the unpaid
rent for the balance of the term after the time of award exceeds the amount of
such rental loss that the Lessee proves could be reasonably avoided; and (p) any
other amount necessary to compensate Lessor for all the detriment proximately
caused by the Lessee's failure to perform its obligations under this Lease or
which in the ordinary course of things would be likely to result therefrom,
including but not limited to the cost of recovering possession of the Premises,
expenses of reletting, including necessary renovation and alteration of the
premises, reasonable attorneys' fees, and that portion of the leasing commission
paid by Lessor applicable to the unexpired term of this Lease. The worth at the
time of award of the amount referred to in provision (iii) of the prior sentence
shall be computed by discounting such amount at the discount rate of the Federal
Reserve Bank of San Francisco at the time of award plus one percent. Efforts by
Lessor to mitigate damages caused by Lessee's Default or Breach of this Lease
shall not waive Lessor's right to recover damages under this Paragraph. If
termination of this Lease is obtained through the provisional remedy of unlawful
detainer, Lessor shall have the right to recover in such proceeding the unpaid
rent and damages as are recoverable therein, or Lessor may reserve therein the
right to recover all or any part thereof in a separate suit for such rent and/or
damages. If a notice and grace period required under subparagraphs 13.1(b), (c)
or (d) was not previously given, a notice to pay rent or quit, or to perform or
quit, as the case may be, given to Lessee under any statute authorizing the
forfeiture of leases for unlawful detainer shall also constitute the applicable
notice for grace period purposes required by subparagraphs 13.1 (b), (e) or (d).
In such case the applicable grace period under subparagraphs 13.1(b), (c) or (d)
and under the unlawful detainer statute shall run concurrently after the one
such statutory notice, and the failure of Lessee to cure the Default within the
greater of the two such grace periods shall constitute both an unlawful detainer
and a Breach of this Lease entitling Lessor to the remedies provided for in this
Lease and/or by said statute.

     (b) Continue the Lease and Lessee's right to possession in effect (in
California under California Civil Code Section 1951.4) after Lessee's Breach and
abandonment and recover the rent as it becomes due, provided Lessee has the
right to sublet or assign, subject only to reasonable limitations. See
Paragraphs 12 and 36 for the limitations on assignment and subletting which
limitations Lessee and Lessor agree are reasonable. Acts of maintenance or
preservations, efforts to relet the premises, or the appointment of a receiver
to protect the Lessor's interest under the Lease, shall not constitute a
termination of the Lessee's right to possession.

     (c) Pursue any other remedy now or hereafter available to Lessor under the
laws or judicial decisions of the state wherein the Premises are located.

     (d) The expiration or termination of this Lease and/or the termination of
Lessee's right to possession shall not relieve Lessee from liability under any
indemnity

NET                                 PAGE 22                       Initials _____
<PAGE>

provisions of this Lease as to matters occurring or accruing during the term
hereof or by reason of Lessee's occupancy of the Premises.

     13.3 INDUCEMENT RECAPTURE IN EVENT OF BREACH. Any agreement by Lessor for
free or abated rent or other charges applicable to the Premises, or for the
giving or paying by Lessor to or for Lessee of any cash or other bonus,
inducement or consideration for Lessee's entering into this Lease, all of which
concessions are hereinafter referred to as "INDUCEMENT PROVISIONS," shall be
deemed conditioned upon Lessee's full and faithful performance of all of the
terms, covenants and conditions of this Lease to be performed or observed by
Lessee during the term hereof as the same may be extended. Upon the occurrence
of a Breach of this Lease by Lessee, as defined in Paragraph 13.1, any such
Inducement Provision shall automatically be deemed deleted from this Lease and
of no further force or effect, and any rent, other charge, bonus, inducement or
consideration theretofore abated, given or paid by Lessor under such an
Inducement Provision shall be immediately due and payable by Lessee to Lessor,
and recoverable by Lessor as additional rent due under this Lease,
notwithstanding any subsequent cure of said Breach by Lessee. The acceptance by
Lessor of rent or the cure of the Breach which initiated the operation of this
Paragraph shall not be deemed a waiver by Lessor of the provisions of this
Paragraph unless specifically so stated in writing by Lessor at the time of such
acceptance.

     13.4 LATE CHARGES. Lessee hereby acknowledges that late payment by Lessee
to Lessor of rent and other sums due hereunder will cause Lessor to incur costs
not contemplated by this Lease, the exact amount of which will be extremely
difficult to ascertain. Such costs include, but are not limited to, processing
and accounting charges, and late charges which may be imposed upon Lessor by the
terms of any ground lease, mortgage or trust deed covering the Premises.
Accordingly, if any installment of rent or any other sum due from Lessee shall
not be received by Lessor or Lessor's designee within five (5) days after such
amount shall be due, then, without any requirement for notice to Lessee, Lessee
shall pay to Lessor a late charge equal to five percent (5%) of such overdue
amount. The parties hereby agree that such late charge represents a fair and
reasonable estimate of the costs Lessor will incur by reason of late payment by
Lessee. Acceptance of such late charge by Lessor shall in no event constitute a
waiver of Lessee's Default or Breach with respect to such overdue amount, nor
prevent Lessor from exercising any of the other rights and remedies granted
hereunder. In the event that a late charge is payable hereunder, whether or not
collected, for three (3) consecutive installments of Base Rent, then
notwithstanding Paragraph 4.1 or any other provision of this Lease to the
contrary, Base Rent shall, at Lessor's option, become due and payable quarterly
in advance.

     13.5 BREACH BY LESSOR. Lessor shall not be deemed in breach of this Lease
unless Lessor fails within a reasonable time to perform an obligation required
to be performed by Lessor. For purposes of this Paragraph 13.5, a reasonable
time shall in no event be less than thirty (30) days after receipt by Lessor,
and by the holders of any ground lease, mortgage or deed of trust covering the
Premises whose name and address shall have been furnished Lessee in writing for
such purpose, of written notice specifying wherein such obligation of Lessor has
not been performed; provided, however, that if the nature of Lessor's obligation
is such that more than thirty (30) days after such notice are reasonably
required for its performance, then Lessor shall not be in `breach of this Lease
if performance is commenced within such thirty (30) day period and thereafter
diligently pursued to completion.

NET                                 PAGE 23                       Initials _____
<PAGE>

14.  CONDEMNATION. If the Premises or any portion thereof are taken under the
power of eminent domain or sold under the threat of the exercise of said power
(all of which are herein called "condemnation"), this Lease shall terminate as
to the part so taken as of the date the condemning authority takes title or
possession, whichever first occurs. If more than ten percent (10%) of the floor
area of the Premises, or more than twenty-five percent (25%) of the land area
not occupied by any building, is taken by condemnation Lessee may, at Lessee's
option, to be exercised in writing within ten (10) days after (Lessor shall have
given Lessee written notice of such taking (or in the absence of such notice,
within ten (10) days after the condemning authority shall have taken possession)
terminate this Lease as of the date the condemning authority takes such
possession. If Lessee does not terminate this Lease in accordance with the
foregoing, this Lease shall remain in full force and effect as to the portion of
the Premises remaining, except that the Base Rent shall be reduced in the same
proportion as the rentable floor area of the Premises taken bears to the total
rentable floor area of the building located on the Premises. No reduction of
Base Rent shall occur if the only portion of the Premises taken is land on which
there is no building. Any award for the taking of all or any part of the
Premises under the power of eminent domain or any payment made under threat of
the exercise of such power shall be the property of Lessor, whether such award
shall be made as compensation for diminution in value of the leasehold or for
the taking of the fee, or as severance damages; provided, however, that Lessee
shall be entitled to any compensation, separately awarded to Lessee for Lessee's
relocation expenses and/or loss of Lessee's Trade Fixtures. In the event that
this Lease is not terminated by reason of such condemnation, Lessor shall to the
extent of its net severance damages received, over and above the legal and other
expenses incurred by Lessor in the condemnation matter, repair any damage to the
Premises caused by such condemnation, except to the extent that Lessee has been
reimbursed therefor by the condemning authority. Lessee shall be responsible for
the payment of any amount in excess of such net severance damages required to
complete such repair.

16.  TENANCY STATEMENT.

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

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

17.  LESSOR'S LIABILITY. The term "LESSOR" as used herein shall mean the owner
or owners at the time in question of the fee title to the Premises, or, if this
is a sublease, of the lessee's interest in the prior lease. In the event of a
transfer of Lessor's title or interest in the Premises or in this

NET                                 PAGE 24                       Initials _____
<PAGE>

Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit)
any unused Security Deposit held by Lessor at the time of such transfer or
assignment. Except as provided in Paragraph 15, upon such transfer or assignment
and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be
relieved of all liability with respect to the obligations and/or covenants under
this Lease thereafter to be performed by the Lessor. Subject to the foregoing,
the obligations and/or covenants in this Lease to be performed by the Lessor
shall be binding only upon the Lessor as hereinabove defined.

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

19.  INTEREST ON PAST-DUE OBLIGATIONS. Any monetary payment due Lessor
hereunder, other than late charges, not received by Lessor within thirty (30)
days following the date on which it was due, shall bear interest from the
thirty-first (31st) day after it was due at the rate of 12% per annum, but not
exceeding the maximum rate allowed by law, in addition to the late charge
provided for in Paragraph 13.4.

20.  TIME OF ESSENCE. Time is of the essence with respect to the performance of
all obligations to be performed or observed by the Parties under this Lease.

21.  RENT DEFINED. All monetary obligations of Lessee to Lessor under the terms
of this Lease are deemed to be rent.

22.  NO PRIOR OR OTHER AGREEMENTS; BROKER DISCLAIMER. This Lease contains all
agreements between the Parties with respect to any matter mentioned herein,, and
no other prior or contemporaneous agreement or understanding shall be effective.
Lessor and Lessee each represents and warrants to the Brokers that it has made,
and is relying solely upon, its own investigation as to the nature, quality,
character and financial responsibility of the other Party to this Lease and as
to the nature, quality and character of the Premises. Brokers have no
responsibility with respect thereto or with respect to any default or breach
hereof by either Party.

23.  NOTICES.

     23.1 All notices required or permitted by this Lease shall be in writing
and may be delivered in person (by hand or by messenger or courier service) or
may be sent by regular, certified or registered mail or U.S. Postal Service
Express Mail, with postage prepaid, or by facsimile transmission, and shall be
deemed sufficiently given if served in a manner specified in this Paragraph 23.
The addresses noted adjacent to a Party's signature on this Lease shall be that
Party's address for delivery or mailing of notice purposes. Either Party may by
written notice to the other specify a different address for notice purposes,
except that upon Lessee's taking possession of the Premises, the Premises shall
constitute Lessee's address for the purpose of mailing or delivering notices to
Lessee. A copy of all notices required or permitted to be given to Lessor
hereunder shall be concurrently transmitted to such party or parties at such
addresses as Lessor may from time to time hereafter designate by written notice
to Lessee.

     23.2 Any notice sent by registered or certified mail, return receipt
requested, shall be deemed given on the date of delivery shown on the receipt
card, or if no delivery date is shown, the postmark thereon. If sent by regular
mail the notice shall be deemed given forty-eight (48)

NET                                 PAGE 25                       Initials _____
<PAGE>

hours after the same is addressed as required herein and mailed with postage
prepaid. Notices delivered by United States Express Mail or overnight courier
that guarantees next day delivery shall be deemed given twenty-four (24) hours
after delivery of the same to the United States Postal Service or courier. If
any notice is transmitted by facsimile transmission or similar means, the same
shall be deemed served or delivered upon telephone confirmation of receipt of
the transmission thereof, provided a copy is also delivered via delivery or
mail. If notice is received on a Sunday or legal holiday, it shall be deemed
received on the next business day.

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

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

26.  NO RIGHT TO HOLDOVER. Lessee has no right to retain possession of the
Premises or any part thereof beyond the expiration or earlier termination of
this Lease

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

28.  COVENANTS AND CONDITIONS. All provisions of this Lease to be observed or
performed by Lessee are both covenants and conditions.

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

30.  SUBORDINATION; ATTORNMENT; NON-DISTURBANCE.

     30.1 SUBORDINATION. This Lease and any Option granted hereby shall be
subject and subordinate to any ground lease, mortgage, deed of trust, or other
hypothecation or security device (collectively, "SECURITY DEVICE"), raw or
hereafter placed by Lessor upon the real property of which the Premises are a
part, to any and all advances made on the security thereof,

NET                                 PAGE 26                       Initials _____
<PAGE>

and to all renewals, modifications, consolidations, replacements and extensions
thereof. Lessee agrees that the Lenders holding any such Security Device shall
have no duty, liability or obligation to perform any of the obligations of
Lessor under this Lease, but that in the event of Lessor's default with respect
to any such obligation, Lessee will give any Lender whose name and address have
been furnished Lessee in writing for such purpose notice of Lessor's default and
allow such Lender thirty (30) days following receipt of such notice for the cure
of said default before invoking any remedies Lessee may have by reason thereof.
If any Lender shall elect to have this Lease and/or any Option granted hereby
superior to the lien of its Security Device and shall give written notice
thereof to Lessee, this Lease and such Options shall be deemed prior to such
Security Device, notwithstanding the relative dates of the documentation or
recordation thereof.

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

     30.3 NON-DISTURBANCE. With respect to Security Devices entered into by
Lessor after the execution of this Lease, Lessee's subordination of this Lease
shall be subject to receiving assurance (a "NON-DISTURBANCE AGREEMENT") from the
Lender that Lessee's possession and this Lease, including any options to extend
the term hereof, will not be disturbed so long as Lessee is not in Breach hereof
and attorns to the record owner of the Premises.

     30.4 SELF-EXECUTING. The agreements contained in this Paragraph 30 shall be
effective without the execution of any further documents; provided, however,
that, upon written request from Lessor or a Lender in connection with a sale,
financing or refinancing of the Premises, Lessee and Lessor shall execute such
further writings as may be reasonably required to separately document any such
subordination or non-subordination, adornment and/or non-disturbance agreement
as is provided for herein.

NET                                 PAGE 27                       Initials _____
<PAGE>

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

     32. LESSOR'S ACCESS; SHOWING PREMISES; REPAIRS. Lessor and Lessor's agents
shall have the right to enter the Premises at any time, in the case of an
emergency, and otherwise at reasonable times for the purpose of showing the same
to prospective purchasers, lenders, or lessees, and making such alterations,
repairs, improvements or additions to the Premises or to the building of which
they are a part as Lessor may reasonably deem necessary. Lessor may at any time
place on or about the Premises or building any ordinary "For Sale" signs and
Lessor may at any time during the last one hundred twenty (120) days of the term
hereof place on or about the Premises any ordinary "For Lease" signs. All such
activities of Lessor shall be without abatement of rent or liability to Lessee.

     33. AUCTIONS. Lessee shall not conduct, nor permit to be conducted, either
voluntarily or involuntarily, any auction upon the Premises without first having
obtained Lessor's prior written consent. Notwithstanding anything to the
contrary in this Lease, Lessor shall not be obligated to, exercise any standard
of reasonableness in determining whether to grant such consent.

     34. SIGNS. Lessee shall not place any sign upon the Premises, except that
Lessee may, with Lessor's prior written consent, install (but not on the roof)
such signs as are reasonably required to advertise Lessee's own business. The
installation of any sign on the Premises by or for Lessee shall be subject to
the provisions of Paragraph 7 (Maintenance, Repairs, Utility Installations,
Trade Fixtures and Alterations). Unless otherwise expressly agreed herein,
Lessor reserves all rights to the use of the roof and the right to install, and
all revenues from the installation of, such advertising signs on the Premises,
including the roof, as do not unreasonably interfere with the conduct of
Lessee's business.

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

NET                                 PAGE 28                       Initials _____
<PAGE>

36.  CONSENTS.

     (a) Except for Paragraph 33 hereof (Auctions) or as otherwise provided
herein, wherever in this Lease the consent of a Party is required to an act by
or for the other Party, such consent shall not be unreasonably withheld or
delayed. Lessor's actual reasonable costs and expenses (including but not
limited to architects, attorneys, engineers' or other consultants' fees)
incurred in the consideration of, or response to, a request by Lessee for any
Lessor consent pertaining to this Lease or the Premises, including but not
limited to consents to an assignment, a subletting or the presence or use of a
Hazardous Substance, practice or storage tank, shall be paid by Lessee to Lessor
upon receipt of an invoice and supporting documentation therefor. Subject to
Paragraph 12.2(e) (applicable to assignment or subletting), Lessor may, as a
condition to considering any such request by Lessee, require that Lessee deposit
with Lessor an amount of money (in addition to the Security Deposit held under
Paragraph 5) reasonably calculated by Lessor to represent the cost Lessor will
incur in considering and responding to Lessee's request. Except as otherwise
provided, any unused portion of said deposit shall be refunded to Lessee without
interest. Lessor's consent to any act, assignment of this Lease or subletting of
the Premises by Lessee shall not constitute an acknowledgment that no Default or
Breach by Lessee of this Lease exists, nor shall such consent be deemed a waiver
of any then existing Default or Breach, except as may be otherwise specifically
stated in writing by Lessor at the time of such consent.

     (b) All conditions to Lessor's consent authorized by this Lease are
acknowledged by Lessee as being reasonable. The failure to specify herein any
particular condition to Lessor's consent shall not preclude the imposition by
Lessor at the time of consent of such further or other conditions as are then
reasonable with reference to the particular matter for which consent is being
given.

37.  GUARANTOR.

     37.1 If there are to be any Guarantors of this Lease per Paragraph 1.11,
the form of the guaranty to be executed by each such Guarantor shall be in the
form most recently published by the American Industrial Real Estate Association,
and each said Guarantor shall have the same obligations as Lessee under this
Lease, including but not limited to the obligation to provide the Tenancy
Statement and information called for by Paragraph 16.

     37.2 It shall constitute a Default of the Lessee under this Lease if any
such Guarantor fails or refuses, upon reasonable request by Lessor to give: (q)
evidence of the due execution of the guaranty called for by this Lease,
including the authority of the Guarantor (and of the party signing on
Guarantor's behalf to obligate such Guarantor on said guaranty, and including in
the case of a corporate Guarantor, a certified copy of a resolution of its board
of directors authorizing the making of such guaranty, together with a
certificate of incumbency showing the signatures of the persons authorized to
sign on its behalf, (r) current financial statements of Guarantor as may from
time to time be requested by Lessor, (s) a Tenancy Statement, or (t) written
confirmation that the guaranty is still in effect.

     38. QUIET POSSESSION. Upon payment by Lessee of the rent for the Premises
and the observance and performance of all of the covenants, conditions and
provisions on Lessee's part

NET                                 PAGE 29                       Initials _____
<PAGE>

to be observed and performed under this Lease, Lessee shall have quiet
possession of the Premises for the entire term hereof subject to all of the
provisions of this Lease.

     40. MULTIPLE BUILDINGS. If the Premises are part of a group of buildings
controlled by Lessor, Lessee agrees that it will abide by, keep and observe all
reasonable rules and regulations which Lessor may make from time to time for the
management, safety, care, and cleanliness of the grounds, the parking and
unloading of vehicles and the preservation of good order, as well as for the
convenience of other occupants or tenants of such other buildings and their
invitees, and that Lessee will pay its fair share of common expenses incurred in
connection therewith.

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

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

     43. PERFORMANCE UNDER PROTEST. If at any time a dispute shall arise as to
any amount or sum of money to be paid by one Party to the other under the
provisions hereof, the Party against whom the obligation to pay the money is
asserted shall have the right to make payment "under protest" and such payment
shall not be regarded as a voluntary payment and there shall survive the right
on the part of said Party to institute suit for recovery of such sum. If it
shall be adjudged that there was no legal obligation on the part of said Party
to pay such sum or any part thereof, said Party shall be entitled to recover
such sum or so much thereof as it was not legally required to pay under the
provisions of this Lease.

     44. AUTHORITY. If either Party hereto is a corporation, trust or general or
limited partnership, each individual executing this Lease on behalf of such
entity represents and warrants that he or she is duly authorized to execute and
deliver this Lease on its behalf. If Lessee is a corporation, trust or
partnership, Lessee shall, within thirty (30) days after request by Lessor,
deliver to Lessor evidence satisfactory to Lessor of such authority.

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

     46. OFFER. Preparation of this Lease by Lessor or Lessor's agent and
submission of same to Lessee shall not be deemed an offer to lease to Lessee.
This Lease is not intended to be binding until executed by all Parties hereto.

     47. AMENDMENTS. This Lease may be modified only in writing, signed by the
parties in interest at the time of the modification. The parties shall amend
this Lease from time to time to reflect any adjustments that are made to the
Base Rent or other rent payable under this Lease. As

NET                                 PAGE 30                       Initials _____
<PAGE>

long as they do not materially change Lessee's obligations hereunder, Lessee
agrees to make such reasonable non-monetary modifications to this Lease as may
be reasonably required by an institutional, insurance company, or pension plan
Lender in connection with the obtaining of normal financing or refinancing of
the property of which the Premises are a part.

     48. MULTIPLE PARTIES. Except as otherwise expressly provided herein, if
more than one person or entity is named herein as either Lessor or Lessee, the
obligations of such multiple parties shall be the joint and several
responsibility of all persons or entities named herein as such Lessor or Lessee.

LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND
PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR
INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE
TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE
AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE
PREMISES.

     IF THIS LEASE HAS BEEN FILLED IN, IT HAS BEEN PREPARED FOR SUBMISSION TO
     YOUR ATTORNEY FOR HIS APPROVAL, FURTHER, EXPERTS SHOULD BE CONSULTED TO
     EVALUATE THE CONDITION OF THE PROPERTY AS TO THE POSSIBLE PRESENCE OF
     ASBESTOS, STORAGE TANKS OR HAZARDOUS SUBSTANCES. NO REPRESENTATION OR
     RECOMMENDATION IS MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION
     OR BY THE REAL ESTATE BROKERS) OR THEIR AGENTS OR EMPLOYEES AS TO THE LEGAL
     SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE
     TRANSACTION TO WHICH IT RELATES; THE PARTIES SHALL RELY SOLELY UPON THE
     ADVICE OF THEIR OWN COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS
     LEASE. IF THE SUBJECT PROPERTY IS LOCATED IN A STATE OTHER THAN CALIFORNIA,
     AN ATTORNEY FROM THE STATE WHERE THE PROPERTY IS LOCATED SHOULD BE
     CONSULTED.

The parties hereto have executed this Lease at the place on the dates specified
above to their respective signatures.

NET                                 PAGE 31                       Initials _____
<PAGE>

Executed at PHOENIX, ARIZONA
            ---------------------------------------

on MAY 15, 2000
   ------------------------------------------------

by LESSOR:

LASALLE COMPANY, LLC,
an Arizona Limited Liability Company

By:
   ------------------------------------------------
Name Printed:  R. CRAIG HANNAY
             --------------------------------------
Title: MEMBER
      ---------------------------------------------
Address: C/O HANNAY INVESTMENT PROPERTIES
        -------------------------------------------
4651 E. PALOMINO ROAD, PHOENIX, ARIZONA 85018
---------------------------------------------------
Tel. No. (602) 840-1851      Fax No. (602) 952-8512
         --------------              --------------

Executed at
            ---------------------------------------

on MAY 11, 2000
   ------------------------------------------------

by LESSEE:

MARKETING SPECIALISTS SALES COMPANY,
a Texas corporation

By:
   ------------------------------------------------
Name Printed:
             --------------------------------------
Title:
      ---------------------------------------------
Address: 17855 DALLAS PARKWAY, DALLAS, TEXAS 75287
        -------------------------------------------
ATTENTION:  GAGE HUNT
---------------------------------------------------
Tel. No. (972)               Fax No. (972)
         --------------              --------------

NET                                 PAGE 32                       Initials _____

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