Document:

<PAGE>
                                                                   Exhibit 10.21

                                      LEASE

                           SFERS REAL ESTATE CORP. A,
                           D/B/A/ SFERS REAL ESTATE A,
                                    Landlord,

                                       and

                     SCOLR, INC., D/B/A/ NUTRACEUTIX, INC.,
                                     Tenant
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                             PAGE
<S>                                                                          <C>
1.       USE AND RESTRICTIONS ON USE.....................................      1
2.       TERM............................................................      2
3.       RENT............................................................      3
4.       RENT ADJUSTMENTS................................................      4
5.       SECURITY DEPOSIT................................................      6
6.       ALTERATIONS.....................................................      6
7.       REPAIR..........................................................      7
8.       LIENS...........................................................      9
9.       ASSIGNMENT AND SUBLETTING.......................................      9
10.      INDEMNIFICATION.................................................     11
11.      INSURANCE.......................................................     11
12.      WAIVER OF SUBROGATION...........................................     12
13.      SERVICES AND UTILITIES..........................................     12
14.      HOLDING OVER....................................................     13
15.      SUBORDINATION...................................................     13
16.      RULES AND REGULATIONS...........................................     13
17.      REENTRY BY LANDLORD.............................................     13
18.      DEFAULT.........................................................     14
19.      REMEDIES........................................................     15
20.      TENANT'S BANKRUPTCY OR INSOLVENCY...............................     19
21.      QUIET ENJOYMENT.................................................     20
22.      CASUALTY........................................................     20
23.      EMINENT DOMAIN..................................................     21
24.      SALE BY LANDLORD................................................     22
25.      ESTOPPEL CERTIFICATES...........................................     22
26.      SURRENDER OF PREMISES...........................................     22
27.      NOTICES.........................................................     23
28.      TAXES PAYABLE BY TENANT.........................................     24
29.      RELOCATION OF TENANT............................................     24
30.      DEFINED TERMS AND HEADINGS......................................     24
31.      TENANT'S AUTHORITY..............................................     25
32.      FINANCIAL STATEMENTS AND CREDIT REPORTS.........................     25
33.      COMMISSIONS.....................................................     25
34.      TIME AND APPLICABLE LAW.........................................     25
35.      SUCCESSORS AND ASSIGNS..........................................     25
36.      ENTIRE AGREEMENT................................................     25
37.      EXAMINATION NOT OPTION..........................................     26
38.      RECORDATION.....................................................     26
39.      LIMITATION OF LANDLORD'S LIABILITY..............................     26
EXHIBIT A - FLOOR PLAN DEPICTING THE PREMISES............................
EXHIBIT A-1 - SITE PLAN..................................................
EXHIBIT A-2 - LEGAL DESCRIPTION..........................................
EXHIBIT B - INITIAL ALTERATIONS..........................................
EXHIBIT C - COMMENCEMENT DATE MEMORANDUM.................................
EXHIBIT D - RULES AND REGULATIONS........................................
</TABLE>

                                       i
<PAGE>
                        MULTI-TENANT INDUSTRIAL NET LEASE

                                 REFERENCE PAGES

<TABLE>
<S>                                                        <C>
BUILDING:                                                  WILLOWS BUSINESS CENTER
                                                           BUILDING 6

LANDLORD:                                                  SFERS REAL ESTATE CORP. A,
                                                           A DELAWARE CORPORATION
                                                           D/B/A/ SFERS REAL ESTATE A

LANDLORD'S ADDRESS:                                        RREEF
                                                           16000 CHRISTENSEN ROAD, SUITE 101
                                                           TUKWILA, WA  98188

WIRE INSTRUCTIONS AND/OR ADDRESS                           SFERS REAL ESTATE CORP. A
FOR RENT PAYMENT:                                          P O BOX 92199
                                                           CHICAGO, IL  60675-2199

LEASE REFERENCE DATE:                                      MARCH 25, 2003

TENANT:                                                    SCOLR, INC., D/B/A/ NUTRACEUTIX, INC.,
                                                           A DELAWARE CORPORATION

TENANT'S NOTICE ADDRESS:

    (a) As of beginning of Term:                           14822 NE 95TH STREET
                                                           REDMOND, WA  98052

    (b) Prior to beginning of Term (if different):         SAME

PREMISES ADDRESS:                                          14822 NE 95th Street, Building 6
                                                           Redmond, WA  98052

PREMISES RENTABLE AREA:                                    Approximately 1,875 sq. ft. (for
                                                           outline of Premises see Exhibit A)

USE:                                                       Research and development,
                                                           manufacturing and marketing of natural
                                                           nutraceutical products.

COMMENCEMENT DATE:                                         August 1, 2003

TERM OF LEASE:                                             Approximately One (1) year, Zero (0)
                                                           months and Zero (0) days beginning on
                                                           the Commencement Date and ending on
                                                           the Termination Date.
</TABLE>

                                       ii
<PAGE>
TERMINATION DATE:                                          July 31, 2004

ANNUAL RENT and MONTHLY INSTALLMENT
OF RENT(Article 3):

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
        PERIOD            RENTABLE SQUARE       ANNUAL RENT        ANNUAL RENT      MONTHLY INSTALLMENT
                              FOOTAGE         PER SQUARE FOOT                             OF RENT
-------------------------------------------------------------------------------------------------------
FROM         THROUGH
-------------------------------------------------------------------------------------------------------
<S>          <C>          <C>                 <C>                 <C>               <C>
8/1/03       7/31/04          1,875               $8.88           $16,650.00            $1,388.00
-------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>                                                        <C>
INITIAL ESTIMATED MONTHLY INSTALLMENT                      $ 292.00 CAM
OF RENT ADJUSTMENTS (Article 4)                            $ 114.00 TAXES
                                                           $  16.00 INSURANCE

TENANT'S PROPORTIONATE SHARE:                              1.15 % (based on 1,875 premises sf /
                                                           163,047 building sf)

SECURITY DEPOSIT:                                          $ 865.00 (Landlord currently holds
                                                           security deposit of $865.00 from
                                                           previous Lease, no additional security
                                                           deposit required.)

ASSIGNMENT/SUBLETTING FEE:                                 $ 1,500.00

REAL ESTATE BROKER DUE COMMISSION:                         NA

TENANT'S SIC CODE:                                         5499-B04

AMORTIZATION RATE:                                         12.00 %
</TABLE>

The Reference Pages information is incorporated into and made a part of the
Lease. In the event of any conflict between any Reference Pages information and
the Lease, the Lease shall control. This Lease includes Exhibits A through D,
all of which are made a part of this Lease.

LANDLORD:                                       TENANT:

SFERS REAL ESTATE CORP. A,                      SCOLR, INC., D/B/A/ NUTRACEUTIX,
A DELAWARE CORPORATION                          INC., A DELAWARE CORPORATION
D/B/A/ SFERS REAL ESTATE A

By:    RREEF Management Company,
       a Delaware corporation

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

Name:  Chris Eckmann                            Name:  Steve Moger

Title: District Manager                         Title:  Chief Financial Officer

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

                                      iii
<PAGE>
                                      LEASE

      By this Lease Landlord hereby leases to Tenant and Tenant hereby leases
from Landlord the Building as set forth and described on the Reference Pages
(the "Premises"). This Lease is solely a lease of space in the Building and does
not constitute a lease of any land. The Premises are depicted on the floor plan
attached hereto as Exhibit A, and the Building is depicted on the site plan
attached hereto as Exhibit A-1. The Reference Pages, including all terms defined
thereon, are incorporated as part of this Lease.

1.    USE AND RESTRICTIONS ON USE.

      1.1 The Premises are to be used solely for the purposes set forth on the
Reference Pages. Tenant shall not do or permit anything to be done in or about
the Premises which will in any way obstruct or interfere with the rights of
other tenants or occupants of the Building or injure, annoy, or disturb them, or
allow the Premises to be used for any improper, immoral, unlawful, or
objectionable purpose, or commit any waste. Tenant shall not do, permit or
suffer in, on, or about the Premises the sale of any alcoholic liquor without
the written consent of Landlord first obtained. Tenant shall comply with all
governmental laws, ordinances and regulations applicable to the use of the
Premises and its occupancy and shall promptly comply with all governmental
orders and directions for the correction, prevention and abatement of any
violations in the Building or appurtenant land, caused or permitted by, or
resulting from the specific use by, Tenant, or in or upon, or in connection
with, the Premises, all at Tenant's sole expense. Tenant shall not do or permit
anything to be done on or about the Premises or bring or keep anything into the
Premises which will in any way increase the rate of, invalidate or prevent the
procuring of any insurance protecting against loss or damage to the Building or
any of its contents by fire or other casualty or against liability for damage to
property or injury to persons in or about the Building or any part thereof.

      1.2 Tenant shall not, and shall not direct, suffer or permit any of its
agents, contractors, employees, licensees or invitees (collectively, the "Tenant
Entities") to at any time handle, use, manufacture, store or dispose of in or
about the Premises or the Building any (collectively "Hazardous Materials")
flammables, explosives, radioactive materials, hazardous wastes or materials,
toxic wastes or materials, or other similar substances, petroleum products or
derivatives or any substance subject to regulation by or under any federal,
state and local laws and ordinances relating to the protection of the
environment or the keeping, use or disposition of environmentally hazardous
materials, substances, or wastes, presently in effect or hereafter adopted, all
amendments to any of them, and all rules and regulations issued pursuant to any
of such laws or ordinances (collectively "Environmental Laws"), nor shall Tenant
suffer or permit any Hazardous Materials to be used in any manner not fully in
compliance with all Environmental Laws, in the Premises or the Building and
appurtenant land or allow the environment to become contaminated with any
Hazardous Materials. Notwithstanding the foregoing, Tenant may handle, store,
use or dispose of products containing small quantities of Hazardous Materials
(such as aerosol cans containing insecticides, toner for copiers, paints, paint
remover and the like) to the extent customary and necessary for the use of the
Premises for general office purposes; provided that Tenant shall always handle,
store, use, and dispose of any such Hazardous Materials in a safe and lawful
manner and never allow such Hazardous Materials

                                       1
<PAGE>
to contaminate the Premises, Building and appurtenant land or the environment.
Tenant shall protect, defend, indemnify and hold each and all of the Landlord
Entities (as defined in Article 30) harmless from and against any and all loss,
claims, liability or costs (including court costs and attorney's fees) incurred
by reason of any actual or asserted failure of Tenant to fully comply with all
applicable Environmental Laws, or the presence, handling, use or disposition in
or from the Premises of any Hazardous Materials by Tenant or any Tenant Entity
(even though permissible under all applicable Environmental Laws or the
provisions of this Lease), or by reason of any actual or asserted failure of
Tenant to keep, observe, or perform any provision of this Section 1.2.

      1.3 Tenant and the Tenant Entities will be entitled to the non-exclusive
use of the common areas of the Building as they exist from time to time during
the Term, including the parking facilities, subject to Landlord's rules and
regulations regarding such use. However, in no event will Tenant or the Tenant
Entities park more vehicles in the parking facilities than Tenant's
Proportionate Share of the total parking spaces available for common use. The
foregoing shall not be deemed to provide Tenant with an exclusive right to any
parking spaces or any guaranty of the availability of any particular parking
spaces or any specific number of parking spaces.

2.    TERM.

      2.1 The Term of this Lease shall begin on the date ("Commencement Date")
which shall be the later of the Scheduled Commencement Date as shown on the
Reference Pages and the date that Landlord shall tender possession of the
Premises to Tenant, and shall terminate on the date as shown on the Reference
Pages ("Termination Date"), unless sooner terminated by the provisions of this
Lease. Landlord shall tender possession of the Premises with all the work, if
any, to be performed by Landlord pursuant to Exhibit B to this Lease
substantially completed. Tenant shall deliver a punch list of items not
completed within thirty (30) days after Landlord tenders possession of the
Premises and Landlord agrees to proceed with due diligence to perform its
obligations regarding such items. Tenant shall, at Landlord's request, execute
and deliver a memorandum agreement provided by Landlord in the form of Exhibit C
attached hereto, setting forth the actual Commencement Date, Termination Date
and, if necessary, a revised rent schedule. Should Tenant fail to do so within
thirty (30) days after Landlord's request, the information set forth in such
memorandum provided by Landlord shall be conclusively presumed to be agreed and
correct.

      2.2 Tenant agrees that in the event of the inability of Landlord to
deliver possession of the Premises on the Scheduled Commencement Date for any
reason, Landlord shall not be liable for any damage resulting from such
inability, but Tenant shall not be liable for any rent until the time when
Landlord can, after notice to Tenant, deliver possession of the Premises to
Tenant. No such failure to give possession on the Scheduled Commencement Date
shall affect the other obligations of Tenant under this Lease, except that if
Landlord is unable to deliver possession of the Premises within one hundred
twenty (120) days after the Scheduled Commencement Date (other than as a result
of strikes, shortages of materials, holdover tenancies or similar matters beyond
the reasonable control of Landlord and Tenant is notified by Landlord in writing
as to such delay), Tenant shall have the option to terminate this Lease unless
said

                                       2
<PAGE>
delay is as a result of (a) Tenant's failure to agree to plans and
specifications and/or construction cost estimates or bids; (b) Tenant's request
for materials, finishes or installations other than Landlord's standard except
those, if any, that Landlord shall have expressly agreed to furnish without
extension of time agreed by Landlord; (c) Tenant's change in any plans or
specifications; or, (d) performance or completion by a party employed by Tenant
(each of the foregoing, a "Tenant Delay"). If any delay is the result of a
Tenant Delay, the Commencement Date and the payment of rent under this Lease
shall be accelerated by the number of days of such Tenant Delay.

      2.3 In the event Landlord permits Tenant, or any agent, employee or
contractor of Tenant, to enter, use or occupy the Premises prior to the
Commencement Date, such entry, use or occupancy shall be subject to all the
provisions of this Lease other than the payment of rent, including, without
limitation, Tenant's compliance with the insurance requirements of Article 11.
Said early possession shall not advance the Termination Date.

3.    RENT.

      3.1 Tenant agrees to pay to Landlord the Annual Rent in effect from time
to time by paying the Monthly Installment of Rent then in effect on or before
the first day of each full calendar month during the Term, except that the first
full month's rent shall be paid upon the execution of this Lease. The Monthly
Installment of Rent in effect at any time shall be one-twelfth (1/12) of the
Annual Rent in effect at such time. Rent for any period during the Term which is
less than a full month shall be a prorated portion of the Monthly Installment of
Rent based upon the number of days in such month. Said rent shall be paid to
Landlord, without deduction or offset and without notice or demand, at the Rent
Payment Address, as set forth on the Reference Pages, or to such other person or
at such other place as Landlord may from time to time designate in writing. If
an Event of Default occurs, Landlord may require by notice to Tenant that all
subsequent rent payments be made by an automatic payment from Tenant's bank
account to Landlord's account, without cost to Landlord. Tenant must implement
such automatic payment system prior to the next scheduled rent payment or within
ten (10) days after Landlord's notice, whichever is later. Unless specified in
this Lease to the contrary, all amounts and sums payable by Tenant to Landlord
pursuant to this Lease shall be deemed additional rent.

      3.2 Tenant recognizes that late payment of any rent or other sum due under
this Lease will result in administrative expense to Landlord, the extent of
which additional expense is extremely difficult and economically impractical to
ascertain. Tenant therefore agrees that if rent or any other sum is not paid
when due and payable pursuant to this Lease, a late charge shall be imposed in
an amount equal to the greater of (a) Fifty Dollars ($50.00), or (b) six percent
(6%) of the unpaid rent or other payment. The amount of the late charge to be
paid by Tenant shall be reassessed and added to Tenant's obligation for each
successive month until paid. The provisions of this Section 3.2 in no way
relieve Tenant of the obligation to pay rent or other payments on or before the
date on which they are due, nor do the terms of this Section 3.2 in any way
affect Landlord's remedies pursuant to Article 19 of this Lease in the event
said rent or other payment is unpaid after date due.

                                       3
<PAGE>
4.    RENT ADJUSTMENTS.

      4.1 For the purpose of this Article 4, the following terms are defined as
follows:

            4.1.1 LEASE YEAR: Each fiscal year (as determined by Landlord from
time to time) falling partly or wholly within the Term.

            4.1.2 EXPENSES: All costs of operation, maintenance, repair,
replacement and management of the Building (including the amount of any credits
which Landlord may grant to particular tenants of the Building in lieu of
providing any standard services or paying any standard costs described in this
Section 4.1.2 for similar tenants), as determined in accordance with generally
accepted accounting principles, including the following costs by way of
illustration, but not limitation: water and sewer charges; insurance charges of
or relating to all insurance policies and endorsements deemed by Landlord to be
reasonably necessary or desirable and relating in any manner to the protection,
preservation, or operation of the Building or any part thereof; utility costs,
including, but not limited to, the cost of heat, light, power, steam, gas; waste
disposal; the cost of janitorial services; the cost of security and alarm
services (including any central station signaling system); costs of cleaning,
repairing, replacing and maintaining the common areas, including parking and
landscaping, window cleaning costs; labor costs; costs and expenses of managing
the Building including management and/or administrative fees; air conditioning
maintenance costs; elevator maintenance fees and supplies; material costs;
equipment costs including the cost of maintenance, repair and service agreements
and rental and leasing costs; purchase costs of equipment; current rental and
leasing costs of items which would be capital items if purchased; tool costs;
licenses, permits and inspection fees; wages and salaries; employee benefits and
payroll taxes; accounting and legal fees; any sales, use or service taxes
incurred in connection therewith. In addition, Landlord shall be entitled to
recover, as additional rent (which, along with any other capital expenditures
constituting Expenses, Landlord may either include in Expenses or cause to be
billed to Tenant along with Expenses and Taxes but as a separate item), Tenant's
Proportionate Share of: (i) an allocable portion of the cost of capital
improvement items which are reasonably calculated to reduce operating expenses;
(ii) the cost of fire sprinklers and suppression systems and other life safety
systems; and (iii) other capital expenses which are required under any
governmental laws, regulations or ordinances which were not applicable to the
Building at the time it was constructed; but the costs described in this
sentence shall be amortized over the reasonable life of such expenditures in
accordance with such reasonable life and amortization schedules as shall be
determined by Landlord in accordance with generally accepted accounting
principles, with interest on the unamortized amount at one percent (1%) in
excess of the Wall Street Journal prime lending rate announced from time to
time. Expenses shall not include depreciation or amortization of the Building or
equipment in the Building except as provided herein, loan principal payments,
costs of alterations of tenants' premises, leasing commissions, interest
expenses on long-term borrowings' or advertising costs.

            4.1.3 TAXES: Real estate taxes and any other taxes, charges and
assessments which are levied with respect to the Building or the land
appurtenant to the Building, or with respect to any improvements, fixtures and
equipment or other property of Landlord, real or personal, located in the
Building and used in connection with the operation of the Building and

                                       4
<PAGE>
said land, any payments to any ground lessor in reimbursement of tax payments
made by such lessor; and all fees, expenses and costs incurred by Landlord in
investigating, protesting, contesting or in any way seeking to reduce or avoid
increase in any assessments, levies or the tax rate pertaining to any Taxes to
be paid by Landlord in any Lease Year. Taxes shall not include any corporate
franchise, or estate, inheritance or net income tax, or tax imposed upon any
transfer by Landlord of its interest in this Lease or the Building or any taxes
to be paid by Tenant, pursuant to Article 28.

      4.2 Tenant shall pay as additional rent for each Lease Year Tenant's
Proportionate Share of Expenses and Taxes incurred for such Lease Year.

      4.3 The annual determination of Expenses shall be made by Landlord and
shall be binding upon Landlord and Tenant, subject to the provisions of this
Section 4.3. During the Term, Tenant may review, at Tenant's sole cost and
expense, the books and records supporting such determination in an office of
Landlord, or Landlord's agent, during normal business hours, upon giving
Landlord five (5) days advance written notice within sixty (60) days after
receipt of such determination, but in no event more often than once in any one
(1) year period, subject to execution of a confidentiality agreement acceptable
to Landlord, and provided that if Tenant utilizes an independent accountant to
perform such review it shall be one of national standing which is reasonably
acceptable to Landlord, is not compensated on a contingency basis and is also
subject to such confidentiality agreement. If Tenant fails to object to
Landlord's determination of Expenses within ninety (90) days after receipt, or
if any such objection fails to state with specificity the reason for the
objection, Tenant shall be deemed to have approved such determination and shall
have no further right to object to or contest such determination. In the event
that during all or any portion of any Lease Year or Base Year, the Building is
not fully rented and occupied Landlord shall make an appropriate adjustment in
occupancy-related Expenses for such year for the purpose of avoiding distortion
of the amount of such Expenses to be attributed to Tenant by reason of variation
in total occupancy of the Building, by employing consistent and sound accounting
and management principles to determine Expenses that would have been paid or
incurred by Landlord had the Building been at least ninety-five percent (95%)
rented and occupied, and the amount so determined shall be deemed to have been
Expenses for such Lease Year.

      4.4 Prior to the actual determination thereof for a Lease Year, Landlord
may from time to time estimate Tenant's liability for Expenses and/or Taxes
under Section 4.2, Article 6 and Article 28 for the Lease Year or portion
thereof. Landlord will give Tenant written notification of the amount of such
estimate and Tenant agrees that it will pay, by increase of its Monthly
Installments of Rent due in such Lease Year, additional rent in the amount of
such estimate. Any such increased rate of Monthly Installments of Rent pursuant
to this Section 4.4 shall remain in effect until further written notification to
Tenant pursuant hereto.

      4.5 When the above mentioned actual determination of Tenant's liability
for Expenses and/or Taxes is made for any Lease Year and when Tenant is so
notified in writing, then:

                                       5
<PAGE>
            4.5.1 If the total additional rent Tenant actually paid pursuant to
Section 4.3 on account of Expenses and/or Taxes for the Lease Year is less than
Tenant's liability for Expenses and/or Taxes, then Tenant shall pay such
deficiency to Landlord as additional rent in one lump sum within thirty (30)
days of receipt of Landlord's bill therefor; and

            4.5.2 If the total additional rent Tenant actually paid pursuant to
Section 4.3 on account of Expenses and/or Taxes for the Lease Year is more than
Tenant's liability for Expenses and/or Taxes, then Landlord shall credit the
difference against the then next due payments to be made by Tenant under this
Article 4, or, if the Lease has terminated, refund the difference in cash.

      4.6 If the Commencement Date is other than January 1 or if the Termination
Date is other than December 31, Tenant's liability for Expenses and Taxes for
the Lease Year in which said Date occurs shall be prorated based upon a three
hundred sixty-five (365) day year.

5.    SECURITY DEPOSIT. Tenant shall deposit the Security Deposit with Landlord
upon the execution of this Lease. Said sum shall be held by Landlord as security
for the faithful performance by Tenant of all the terms, covenants and
conditions of this Lease to be kept and performed by Tenant and not as an
advance rental deposit or as a measure of Landlord's damage in case of Tenant's
default. If Tenant defaults with respect to any provision of this Lease,
Landlord may use any part of the Security Deposit for the payment of any rent or
any other sum in default, or for the payment of any amount which Landlord may
spend or become obligated to spend by reason of Tenant's default, or to
compensate Landlord for any other loss or damage which Landlord may suffer by
reason of Tenant's default. If any portion is so used, Tenant shall within five
(5) days after written demand therefor, deposit with Landlord an amount
sufficient to restore the Security Deposit to its original amount and Tenant's
failure to do so shall be a material breach of this Lease. Except to such
extent, if any, as shall be required by law, Landlord shall not be required to
keep the Security Deposit separate from its general funds, and Tenant shall not
be entitled to interest on such deposit. If Tenant shall fully and faithfully
perform every provision of this Lease to be performed by it, the Security
Deposit or any balance thereof shall be returned to Tenant at such time after
termination of this Lease when Landlord shall have determined that all of
Tenant's obligations under this Lease have been fulfilled.

6.    ALTERATIONS.

      6.1 Except for those, if any, specifically provided for in Exhibit B to
this Lease, Tenant shall not make or suffer to be made any alterations,
additions, or improvements, including, but not limited to, the attachment of any
fixtures or equipment in, on, or to the Premises or any part thereof or the
making of any improvements as required by Article 7, without the prior written
consent of Landlord. When applying for such consent, Tenant shall, if requested
by Landlord, furnish complete plans and specifications for such alterations,
additions and improvements. Landlord's consent shall not be unreasonably
withheld with respect to alterations which (i) are not structural in nature,
(ii) are not visible from the exterior of the Building, (iii) do not affect or
require modification of the Building's electrical, mechanical, plumbing, HVAC or
other systems, and (iv) in aggregate do not cost more than $5.00 per rentable
square foot of that portion of the Premises affected by the alterations in
question.

                                       6
<PAGE>
      6.2 In the event Landlord consents to the making of any such alteration,
addition or improvement by Tenant, the same shall be made by using either
Landlord's contractor or a contractor reasonably approved by Landlord, in either
event at Tenant's sole cost and expense. If Tenant shall employ any contractor
other than Landlord's contractor and such other contractor or any subcontractor
of such other contractor shall employ any non-union labor or supplier, Tenant
shall be responsible for and hold Landlord harmless from any and all delays,
damages and extra costs suffered by Landlord as a result of any dispute with any
labor unions concerning the wage, hours, terms or conditions of the employment
of any such labor. In any event Landlord may charge Tenant a construction
management fee not to exceed five percent (5%) of the cost of such work to cover
its overhead as it relates to such proposed work, plus third-party costs
actually incurred by Landlord in connection with the proposed work and the
design thereof, with all such amounts being due five (5) days after Landlord's
demand.

      6.3 All alterations, additions or improvements proposed by Tenant shall be
constructed in accordance with all government laws, ordinances, rules and
regulations, using Building standard materials where applicable, and Tenant
shall, prior to construction, provide the additional insurance required under
Article 11 in such case, and also all such assurances to Landlord as Landlord
shall reasonably require to assure payment of the costs thereof, including but
not limited to, notices of non-responsibility, waivers of lien, surety company
performance bonds and funded construction escrows and to protect Landlord and
the Building and appurtenant land against any loss from any mechanic's,
materialmen's or other liens. Tenant shall pay in addition to any sums due
pursuant to Article 4, any increase in real estate taxes attributable to any
such alteration, addition or improvement for so long, during the Term, as such
increase is ascertainable; at Landlord's election said sums shall be paid in the
same way as sums due under Article 4. Landlord may, as a condition to its
consent to any particular alterations or improvements, require Tenant to deposit
with Landlord the amount reasonably estimated by Landlord as sufficient to cover
the cost of removing such alterations or improvements and restoring the
Premises, to the extent required under Section 26.2.

7.    REPAIR.

      7.1 Landlord shall have no obligation to alter, remodel, improve, repair,
decorate or paint the Premises, except as specified in Exhibit B if attached to
this Lease and except that Landlord shall repair and maintain the structural
portions of the roof, foundation and walls of the Building. By taking possession
of the Premises, Tenant accepts them as being in good order, condition and
repair and in the condition in which Landlord is obligated to deliver them,
except as set forth in the punch list to be delivered pursuant to Section 2.1.
It is hereby understood and agreed that no representations respecting the
condition of the Premises or the Building have been made by Landlord to Tenant,
except as specifically set forth in this Lease. Landlord shall not be liable for
any failure to make any repairs or to perform any maintenance unless such
failure shall persist for an unreasonable time after written notice of the need
of such repairs or maintenance is given to Landlord by Tenant.

                                       7
<PAGE>
      7.2 Tenant shall at its own cost and expense keep and maintain all parts
of the Premises and such portion of the Building and improvements as are within
the exclusive control of Tenant in good condition, promptly making all necessary
repairs and replacements, whether ordinary or extraordinary, with materials and
workmanship of the same character, kind and quality as the original (including,
but not limited to, repair and replacement of all fixtures installed by Tenant,
water heaters serving the Premises, windows, glass and plate glass, doors,
exterior stairs, skylights, any special office entries, interior walls and
finish work, floors and floor coverings, heating and air conditioning systems
serving the Premises, electrical systems and fixtures, sprinkler systems, dock
boards, truck doors, dock bumpers, plumbing work and fixtures, and performance
of regular removal of trash and debris). Tenant as part of its obligations
hereunder shall keep the Premises in a clean and sanitary condition. Tenant
will, as far as possible keep all such parts of the Premises from deterioration
due to ordinary wear and from falling temporarily out of repair, and upon
termination of this Lease in any way Tenant will yield up the Premises to
Landlord in good condition and repair, loss by fire or other casualty excepted
(but not excepting any damage to glass). Tenant shall, at its own cost and
expense, repair any damage to the Premises or the Building resulting from and/or
caused in whole or in part by the negligence or misconduct of Tenant, its
agents, employees, contractors, invitees, or any other person entering upon the
Premises as a result of Tenant's business activities or caused by Tenant's
default hereunder.

      7.3 Except as provided in Article 22, there shall be no abatement of rent
and no liability of Landlord by reason of any injury to or interference with
Tenant's business arising from the making of any repairs, alterations or
improvements in or to any portion of the Building or the Premises or to
fixtures, appurtenances and equipment in the Building. Except to the extent, if
any, prohibited by law, Tenant waives the right to make repairs at Landlord's
expense under any law, statute or ordinance now or hereafter in effect.

      7.4 Tenant shall, at its own cost and expense, enter into a regularly
scheduled preventive maintenance/service contract with a maintenance contractor
approved by Landlord for servicing all heating and air conditioning systems and
equipment serving the Premises (and a copy thereof shall be furnished to
Landlord). The service contract must include all services suggested by the
equipment manufacturer in the operation/maintenance manual and must become
effective within thirty (30) days of the date Tenant takes possession of the
Premises. Should Tenant fail to do so, Landlord may, upon notice to Tenant,
enter into such a maintenance/service contract on behalf of Tenant or perform
the work and in either case, charge Tenant the cost thereof along with a
reasonable amount for Landlord's overhead.

      7.5 Landlord shall coordinate any repairs and other maintenance of any
railroad tracks serving the Building and, if Tenant uses such rail tracks,
Tenant shall reimburse Landlord or the railroad company from time to time upon
demand, as additional rent, for its share of the costs of such repair and
maintenance and for any other sums specified in any agreement to which Landlord
or Tenant is a party respecting such tracks, such costs to be borne
proportionately by all tenants in the Building using such rail tracks, based
upon the actual number of rail cars shipped and received by such tenant during
each calendar year during the Term.

                                       8
<PAGE>
8.    LIENS. Tenant shall keep the Premises, the Building and appurtenant land
and Tenant's leasehold interest in the Premises free from any liens arising out
of any services, work or materials performed, furnished, or contracted for by
Tenant, or obligations incurred by Tenant. In the event that Tenant fails,
within ten (10) days following the imposition of any such lien, to either cause
the same to be released of record or provide Landlord with insurance against the
same issued by a major title insurance company or such other protection against
the same as Landlord shall accept (such failure to constitute an Event of
Default), Landlord shall have the right to cause the same to be released by such
means as it shall deem proper, including payment of the claim giving rise to
such lien. All such sums paid by Landlord and all expenses incurred by it in
connection therewith shall be payable to it by Tenant within five (5) days of
Landlord's demand.

9.    ASSIGNMENT AND SUBLETTING.

      9.1 Tenant shall not have the right to assign or pledge this Lease or to
sublet the whole or any part of the Premises whether voluntarily or by operation
of law, or permit the use or occupancy of the Premises by anyone other than
Tenant, and shall not make, suffer or permit such assignment, subleasing or
occupancy without the prior written consent of Landlord, such consent not to be
unreasonably withheld, and said restrictions shall be binding upon any and all
assignees of the Lease and subtenants of the Premises. In the event Tenant
desires to sublet, or permit such occupancy of, the Premises, or any portion
thereof, or assign this Lease, Tenant shall give written notice thereof to
Landlord at least sixty (60) days but no more than one hundred twenty (120) days
prior to the proposed commencement date of such subletting or assignment, which
notice shall set forth the name of the proposed subtenant or assignee, the
relevant terms of any sublease or assignment and copies of financial reports and
other relevant financial information of the proposed subtenant or assignee.

      9.2 Notwithstanding any assignment or subletting, permitted or otherwise,
Tenant shall at all times remain directly, primarily and fully responsible and
liable for the payment of the rent specified in this Lease and for compliance
with all of its other obligations under the terms, provisions and covenants of
this Lease. Upon the occurrence of an Event of Default, if the Premises or any
part of them are then assigned or sublet, Landlord, in addition to any other
remedies provided in this Lease or provided by law, may, at its option, collect
directly from such assignee or subtenant all rents due and becoming due to
Tenant under such assignment or sublease and apply such rent against any sums
due to Landlord from Tenant under this Lease, and no such collection shall be
construed to constitute a novation or release of Tenant from the further
performance of Tenant's obligations under this Lease.

      9.3 In addition to Landlord's right to approve of any subtenant or
assignee, Landlord shall have the option, in its sole discretion, in the event
of any proposed subletting or assignment, to terminate this Lease, or in the
case of a proposed subletting of less than the entire Premises, to recapture the
portion of the Premises to be sublet, as of the date the subletting or
assignment is to be effective. The option shall be exercised, if at all, by
Landlord giving Tenant written notice given by Landlord to Tenant within thirty
(30) days following Landlord's receipt of Tenant's written notice as required
above. However, if Tenant notifies Landlord, within five (5) days after receipt
of Landlord's termination notice, that Tenant is rescinding its proposed
assignment or

                                       9
<PAGE>
sublease, the termination notice shall be void and the Lease shall continue in
full force and effect. If this Lease shall be terminated with respect to the
entire Premises pursuant to this Section, the Term of this Lease shall end on
the date stated in Tenant's notice as the effective date of the sublease or
assignment as if that date had been originally fixed in this Lease for the
expiration of the Term. If Landlord recaptures under this Section only a portion
of the Premises, the rent to be paid from time to time during the unexpired Term
shall abate proportionately based on the proportion by which the approximate
square footage of the remaining portion of the Premises shall be less than that
of the Premises as of the date immediately prior to such recapture. Tenant
shall, at Tenant's own cost and expense, discharge in full any outstanding
commission obligation which may be due and owing as a result of any proposed
assignment or subletting, whether or not the Premises are recaptured pursuant to
this Section 9.3 and rented by Landlord to the proposed tenant or any other
tenant.

      9.4 In the event that Tenant sells, sublets, assigns or transfers this
Lease, Tenant shall pay to Landlord as additional rent an amount equal to one
hundred percent (100%) of any Increased Rent (as defined below), less the Costs
Component (as defined below), when and as such Increased Rent is received by
Tenant. As used in this Section, "Increased Rent" shall mean the excess of (i)
all rent and other consideration which Tenant is entitled to receive by reason
of any sale, sublease, assignment or other transfer of this Lease, over (ii) the
rent otherwise payable by Tenant under this Lease at such time. For purposes of
the foregoing, any consideration received by Tenant in form other than cash
shall be valued at its fair market value as determined by Landlord in good
faith. The "Costs Component" is that amount which, if paid monthly, would fully
amortize on a straight-line basis, over the entire period for which Tenant is to
receive Increased Rent, the reasonable costs incurred by Tenant for leasing
commissions and tenant improvements in connection with such sublease, assignment
or other transfer.

      9.5 Notwithstanding any other provision hereof, it shall be considered
reasonable for Landlord to withhold its consent to any assignment of this Lease
or sublease of any portion of the Premises if at the time of either Tenant's
notice of the proposed assignment or sublease or the proposed commencement date
thereof, there shall exist any uncured default of Tenant or matter which will
become a default of Tenant with passage of time unless cured, or if the proposed
assignee or sublessee is an entity: (a) with which Landlord is already in
negotiation; (b) is already an occupant of the Building unless Landlord is
unable to provide the amount of space required by such occupant; (c) is a
governmental agency; (d) is incompatible with the character of occupancy of the
Building; (e) with which the payment for the sublease or assignment is
determined in whole or in part based upon its net income or profits; or (f)
would subject the Premises to a use which would: (i) involve increased personnel
or wear upon the Building; (ii) violate any exclusive right granted to another
tenant of the Building; (iii) require any addition to or modification of the
Premises or the Building in order to comply with building code or other
governmental requirements; or, (iv) involve a violation of Section 1.2. Tenant
expressly agrees that for the purposes of any statutory or other requirement of
reasonableness on the part of Landlord, Landlord's refusal to consent to any
assignment or sublease for any of the reasons described in this Section 9.5,
shall be conclusively deemed to be reasonable.

      9.6 Upon any request to assign or sublet, Tenant will pay to Landlord the
Assignment/Subletting Fee plus, on demand, a sum equal to all of Landlord's
costs, including

                                       10
<PAGE>
reasonable attorney's fees, incurred in investigating and considering any
proposed or purported assignment or pledge of this Lease or sublease of any of
the Premises, regardless of whether Landlord shall consent to, refuse consent,
or determine that Landlord's consent is not required for, such assignment,
pledge or sublease. Any purported sale, assignment, mortgage, transfer of this
Lease or subletting which does not comply with the provisions of this Article 9
shall be void.

      9.7 If Tenant is a corporation, limited liability company, partnership or
trust, any transfer or transfers of or change or changes within any twelve (12)
month period in the number of the outstanding voting shares of the corporation
or limited liability company, the general partnership interests in the
partnership or the identity of the persons or entities controlling the
activities of such partnership or trust resulting in the persons or entities
owning or controlling a majority of such shares, partnership interests or
activities of such partnership or trust at the beginning of such period no
longer having such ownership or control shall be regarded as equivalent to an
assignment of this Lease to the persons or entities acquiring such ownership or
control and shall be subject to all the provisions of this Article 9 to the same
extent and for all intents and purposes as though such an assignment.

10.   INDEMNIFICATION. None of the Landlord Entities shall be liable and Tenant
hereby waives all claims against them for any damage to any property or any
injury to any person in or about the Premises or the Building by or from any
cause whatsoever (including without limiting the foregoing, rain or water
leakage of any character from the roof, windows, walls, basement, pipes,
plumbing works or appliances, the Building not being in good condition or
repair, gas, fire, oil, electricity or theft), except to the extent caused by or
arising from the gross negligence or willful misconduct of Landlord or its
agents, employees or contractors. Tenant shall protect, indemnify and hold the
Landlord Entities harmless from and against any and all loss, claims, liability
or costs (including court costs and attorney's fees) incurred by reason of (a)
any damage to any property (including but not limited to property of any
Landlord Entity) or any injury (including but not limited to death) to any
person occurring in, on or about the Premises or the Building to the extent that
such injury or damage shall be caused by or arise from any actual or alleged
act, neglect, fault, or omission by or of Tenant or any Tenant Entity to meet
any standards imposed by any duty with respect to the injury or damage; (b) the
conduct or management of any work or thing whatsoever done by the Tenant in or
about the Premises or from transactions of the Tenant concerning the Premises;
(c) Tenant's failure to comply with any and all governmental laws, ordinances
and regulations applicable to the condition or use of the Premises or its
occupancy; or (d) any breach or default on the part of Tenant in the performance
of any covenant or agreement on the part of the Tenant to be performed pursuant
to this Lease. The provisions of this Article shall survive the termination of
this Lease with respect to any claims or liability accruing prior to such
termination.

11.   INSURANCE.

      11.1 Tenant shall keep in force throughout the Term: (a) a Commercial
General Liability insurance policy or policies to protect the Landlord Entities
against any liability to the public or to any invitee of Tenant or a Landlord
Entity incidental to the use of or resulting from any accident occurring in or
upon the Premises with a limit of not less than $1,000,000 per occurrence and
not less than $2,000,000 in the annual aggregate, or such larger amount as

                                       11
<PAGE>
Landlord may prudently require from time to time, covering bodily injury and
property damage liability and $1,000,000 products/completed operations
aggregate; (b) Business Auto Liability covering owned, non-owned and hired
vehicles with a limit of not less than $1,000,000 per accident; (c) insurance
protecting against liability under Worker's Compensation Laws with limits at
least as required by statute with Employers Liability with limits of $500,000
each accident, $500,000 disease policy limit, $500,000 disease--each employee;
(d) All Risk or Special Form coverage protecting Tenant against loss of or
damage to Tenant's alterations, additions, improvements, carpeting, floor
coverings, panelings, decorations, fixtures, inventory and other business
personal property situated in or about the Premises to the full replacement
value of the property so insured; and, (e) Business Interruption Insurance with
limit of liability representing loss of at least approximately six (6) months of
income.

      11.2 The aforesaid policies shall (a) be provided at Tenant's expense; (b)
name the Landlord Entities as additional insureds (General Liability) and loss
payee (Property-Special Form); (c) be issued by an insurance company with a
minimum Best's rating of "A:VII" during the Term; and (d) provide that said
insurance shall not be canceled unless thirty (30) days prior written notice
(ten days for non-payment of premium) shall have been given to Landlord; a
certificate of Liability insurance on ACORD Form 25 and a certificate of
Property insurance on ACORD Form 27 shall be delivered to Landlord by Tenant
upon the Commencement Date and at least thirty (30) days prior to each renewal
of said insurance.

      11.3 Whenever Tenant shall undertake any alterations, additions or
improvements in, to or about the Premises ("Work") the aforesaid insurance
protection must extend to and include injuries to persons and damage to property
arising in connection with such Work, without limitation including liability
under any applicable structural work act, and such other insurance as Landlord
shall require; and the policies of or certificates evidencing such insurance
must be delivered to Landlord prior to the commencement of any such Work.

12.   WAIVER OF SUBROGATION. So long as their respective insurers so permit,
Tenant and Landlord hereby mutually waive their respective rights of recovery
against each other for any loss insured by fire, extended coverage, All Risks or
other insurance now or hereafter existing for the benefit of the respective
party but only to the extent of the net insurance proceeds payable under such
policies. Each party shall obtain any special endorsements required by their
insurer to evidence compliance with the aforementioned waiver.

13.   SERVICES AND UTILITIES. Tenant shall pay for all water, gas, heat, light,
power, telephone, sewer, sprinkler system charges and other utilities and
services used on or from the Premises, together with any taxes, penalties, and
surcharges or the like pertaining thereto and any maintenance charges for
utilities. Tenant shall furnish all electric light bulbs, tubes and ballasts,
battery packs for emergency lighting and fire extinguishers. If any such
services are not separately metered to Tenant, Tenant shall pay such proportion
of all charges jointly metered with other premises as determined by Landlord, in
its sole discretion, to be reasonable. Any such charges paid by Landlord and
assessed against Tenant shall be immediately payable to Landlord on demand and
shall be additional rent hereunder. Tenant will not, without the written consent
of Landlord, contract with a utility provider to service the Premises with any
utility, including, but not limited to, telecommunications, electricity, water,
sewer or gas, which is not previously

                                       12
<PAGE>
providing such service to other tenants in the Building. Landlord shall in no
event be liable for any interruption or failure of utility services on or to the
Premises.

14.   HOLDING OVER. Tenant shall pay Landlord for each day Tenant retains
possession of the Premises or part of them after termination of this Lease by
lapse of time or otherwise at the rate ("Holdover Rate") which shall be Two
Hundred Percent (200%) of the greater of (a) the amount of the Annual Rent for
the last period prior to the date of such termination plus all Rent Adjustments
under Article 4; and (b) the then market rental value of the Premises as
determined by Landlord assuming a new lease of the Premises of the then usual
duration and other terms, in either case, prorated on a daily basis, and also
pay all damages sustained by Landlord by reason of such retention. If Landlord
gives notice to Tenant of Landlord's election to such effect, such holding over
shall constitute renewal of this Lease for a period from month to month or one
(1) year, whichever shall be specified in such notice, in either case at the
Holdover Rate, but if the Landlord does not so elect, no such renewal shall
result notwithstanding acceptance by Landlord of any sums due hereunder after
such termination; and instead, a tenancy at sufferance at the Holdover Rate
shall be deemed to have been created. In any event, no provision of this Article
14 shall be deemed to waive Landlord's right of reentry or any other right under
this Lease or at law.

15.   SUBORDINATION. Without the necessity of any additional document being
executed by Tenant for the purpose of effecting a subordination, this Lease
shall be subject and subordinate at all times to ground or underlying leases and
to the lien of any mortgages or deeds of trust now or hereafter placed on,
against or affecting the Building, Landlord's interest or estate in the
Building, or any ground or underlying lease; provided, however, that if the
lessor, mortgagee, trustee, or holder of any such mortgage or deed of trust
elects to have Tenant's interest in this Lease be superior to any such
instrument, then, by notice to Tenant, this Lease shall be deemed superior,
whether this Lease was executed before or after said instrument. Notwithstanding
the foregoing, Tenant covenants and agrees to execute and deliver within ten
(10) days of Landlord's request such further instruments evidencing such
subordination or superiority of this Lease as may be required by Landlord.

16.   RULES AND REGULATIONS. Tenant shall faithfully observe and comply with all
the rules and regulations as set forth in Exhibit D to this Lease and all
reasonable and non-discriminatory modifications of and additions to them from
time to time put into effect by Landlord. Landlord shall not be responsible to
Tenant for the non-performance by any other tenant or occupant of the Building
of any such rules and regulations.

17.   REENTRY BY LANDLORD.

      17.1 Landlord reserves and shall at all times have the right to re-enter
the Premises to inspect the same, to show said Premises to prospective
purchasers, mortgagees or tenants, and to alter, improve or repair the Premises
and any portion of the Building, without abatement of rent, and may for that
purpose erect, use and maintain scaffolding, pipes, conduits and other necessary
structures and open any wall, ceiling or floor in and through the Building and
Premises where reasonably required by the character of the work to be performed,
provided entrance to the Premises shall not be blocked thereby, and further
provided that the business of Tenant shall not

                                       13
<PAGE>
be interfered with unreasonably. Landlord shall have the right at any time to
change the arrangement and/or locations of entrances, or passageways, doors and
doorways, and corridors, windows, elevators, stairs, toilets or other public
parts of the Building and to change the name, number or designation by which the
Building is commonly known. In the event that Landlord damages any portion of
any wall or wall covering, ceiling, or floor or floor covering within the
Premises, Landlord shall repair or replace the damaged portion to match the
original as nearly as commercially reasonable but shall not be required to
repair or replace more than the portion actually damaged. Tenant hereby waives
any claim for damages for any injury or inconvenience to or interference with
Tenant's business, any loss of occupancy or quiet enjoyment of the Premises, and
any other loss occasioned by any action of Landlord authorized by this Article
17.

      17.2 For each of the aforesaid purposes, Landlord shall at all times have
and retain a key with which to unlock all of the doors in the Premises,
excluding Tenant's vaults and safes or special security areas (designated in
advance), and Landlord shall have the right to use any and all means which
Landlord may deem proper to open said doors in an emergency to obtain entry to
any portion of the Premises. As to any portion to which access cannot be had by
means of a key or keys in Landlord's possession, Landlord is authorized to gain
access by such means as Landlord shall elect and the cost of repairing any
damage occurring in doing so shall be borne by Tenant and paid to Landlord
within five (5) days of Landlord's demand.

18.   DEFAULT.

      18.1 Except as otherwise provided in Article 20, the following events
shall be deemed to be Events of Default under this Lease:

            18.1.1 Tenant shall fail to pay when due any sum of money becoming
due to be paid to Landlord under this Lease, whether such sum be any installment
of the rent reserved by this Lease, any other amount treated as additional rent
under this Lease, or any other payment or reimbursement to Landlord required by
this Lease, whether or not treated as additional rent under this Lease, and such
failure shall continue for a period of five (5) days after written notice that
such payment was not made when due, but if any such notice shall be given, for
the twelve (12) month period commencing with the date of such notice, the
failure to pay within five (5) days after due any additional sum of money
becoming due to be paid to Landlord under this Lease during such period shall be
an Event of Default, without notice.

            18.1.2 Tenant shall fail to comply with any term, provision or
covenant of this Lease which is not provided for in another Section of this
Article and shall not cure such failure within twenty (20) days (forthwith, if
the failure involves a hazardous condition) after written notice of such failure
to Tenant provided, however, that such failure shall not be an event of default
if such failure could not reasonably be cured during such twenty (20) day
period, Tenant has commenced the cure within such twenty (20) day period and
thereafter is diligently pursuing such cure to completion, but the total
aggregate cure period shall not exceed ninety (90) days.

            18.1.3 Tenant shall fail to vacate the Premises immediately upon
termination of this Lease, by lapse of time or otherwise, or upon termination of
Tenant's right to possession only.

                                       14
<PAGE>
            18.1.4 Tenant shall become insolvent, admit in writing its inability
to pay its debts generally as they become due, file a petition in bankruptcy or
a petition to take advantage of any insolvency statute, make an assignment for
the benefit of creditors, make a transfer in fraud of creditors, apply for or
consent to the appointment of a receiver of itself or of the whole or any
substantial part of its property, or file a petition or answer seeking
reorganization or arrangement under the federal bankruptcy laws, as now in
effect or hereafter amended, or any other applicable law or statute of the
United States or any state thereof.

            18.1.5 A court of competent jurisdiction shall enter an order,
judgment or decree adjudicating Tenant bankrupt, or appointing a receiver of
Tenant, or of the whole or any substantial part of its property, without the
consent of Tenant, or approving a petition filed against Tenant seeking
reorganization or arrangement of Tenant under the bankruptcy laws of the United
States, as now in effect or hereafter amended, or any state thereof, and such
order, judgment or decree shall not be vacated or set aside or stayed within
sixty (60) days from the date of entry thereof.

19.   REMEDIES.

      19.1 Except as otherwise provided in Article 20, upon the occurrence of
any of the Events of Default described or referred to in Article 18, Landlord
shall have the option to pursue any one or more of the following remedies
without any notice or demand whatsoever, concurrently or consecutively and not
alternatively:

            19.1.1 Landlord may, at its election, terminate this Lease or
terminate Tenant's right to possession only, without terminating the Lease.

            19.1.2 Upon any termination of this Lease, whether by lapse of time
or otherwise, or upon any termination of Tenant's right to possession without
termination of the Lease, Tenant shall surrender possession and vacate the
Premises immediately, and deliver possession thereof to Landlord, and Tenant
hereby grants to Landlord full and free license to enter into and upon the
Premises in such event and to repossess Landlord of the Premises as of
Landlord's former estate and to expel or remove Tenant and any others who may be
occupying or be within the Premises and to remove Tenant's signs and other
evidence of tenancy and all other property of Tenant therefrom without being
deemed in any manner guilty of trespass, eviction or forcible entry or detainer,
and without incurring any liability for any damage resulting therefrom, Tenant
waiving any right to claim damages for such re-entry and expulsion, and without
relinquishing Landlord's right to rent or any other right given to Landlord
under this Lease or by operation of law.

            19.1.3 Upon any termination of this Lease, whether by lapse of time
or otherwise, Landlord shall be entitled to recover as damages, all rent,
including any amounts treated as additional rent under this Lease, and other
sums due and payable by Tenant on the date of termination, plus as liquidated
damages and not as a penalty, an amount equal to the sum of (a) an amount equal
to the then present value of the rent reserved in this Lease for the residue of
the stated Term of this Lease including any amounts treated as additional rent
under this Lease and all other sums provided in this Lease to be paid by Tenant,
minus the fair rental value of the

                                       15
<PAGE>
Premises for such residue; (b) the value of the time and expense necessary to
obtain a replacement tenant or tenants, and the estimated expenses described in
Section 19.1.4 relating to recovery of the Premises, preparation for reletting
and for reletting itself; and (c) the cost of performing any other covenants
which would have otherwise been performed by Tenant.

            19.1.4 Upon any termination of Tenant's right to possession only
without termination of the Lease:

                  19.1.4.1 Neither such termination of Tenant's right to
possession nor Landlord's taking and holding possession thereof as provided in
Section 19.1.2 shall terminate the Lease or release Tenant, in whole or in part,
from any obligation, including Tenant's obligation to pay the rent, including
any amounts treated as additional rent, under this Lease for the full Term, and
if Landlord so elects Tenant shall continue to pay to Landlord the entire amount
of the rent as and when it becomes due, including any amounts treated as
additional rent under this Lease, for the remainder of the Term plus any other
sums provided in this Lease to be paid by Tenant for the remainder of the Term.

                  19.1.4.2 Landlord shall use commercially reasonable efforts to
relet the Premises or portions thereof to the extent required by applicable law.
Landlord and Tenant agree that nevertheless Landlord shall at most be required
to use only the same efforts Landlord then uses to lease premises in the
Building generally and that in any case that Landlord shall not be required to
give any preference or priority to the showing or leasing of the Premises or
portions thereof over any other space that Landlord may be leasing or have
available and may place a suitable prospective tenant in any such other space
regardless of when such other space becomes available and that Landlord shall
have the right to relet the Premises for a greater or lesser term than that
remaining under this Lease, the right to relet only a portion of the Premises,
or a portion of the Premises or the entire Premises as a part of a larger area,
and the right to change the character or use of the Premises. In connection with
or in preparation for any reletting, Landlord may, but shall not be required to,
make repairs, alterations and additions in or to the Premises and redecorate the
same to the extent Landlord deems necessary or desirable, and Tenant shall pay
the cost thereof, together with Landlord's expenses of reletting, including,
without limitation, any commission incurred by Landlord, within five (5) days of
Landlord's demand. Landlord shall not be required to observe any instruction
given by Tenant about any reletting or accept any tenant offered by Tenant
unless such offered tenant has a creditworthiness acceptable to Landlord and
leases the entire Premises upon terms and conditions including a rate of rent
(after giving effect to all expenditures by Landlord for tenant improvements,
broker's commissions and other leasing costs) all no less favorable to Landlord
than as called for in this Lease, nor shall Landlord be required to make or
permit any assignment or sublease for more than the current term or which
Landlord would not be required to permit under the provisions of Article 9.

                  19.1.4.3 Until such time as Landlord shall elect to terminate
the Lease and shall thereupon be entitled to recover the amounts specified in
such case in Section 19.1.3, Tenant shall pay to Landlord upon demand the full
amount of all rent, including any amounts treated as additional rent under this
Lease and other sums reserved in this Lease for the remaining Term, together
with the costs of repairs, alterations, additions, redecorating and

                                       16
<PAGE>
Landlord's expenses of reletting and the collection of the rent accruing
therefrom (including reasonable attorney's fees and broker's commissions), as
the same shall then be due or become due from time to time, less only such
consideration as Landlord may have received from any reletting of the Premises;
and Tenant agrees that Landlord may file suits from time to time to recover any
sums falling due under this Article 19 as they become due. Any proceeds of
reletting by Landlord in excess of the amount then owed by Tenant to Landlord
from time to time shall be credited against Tenant's future obligations under
this Lease but shall not otherwise be refunded to Tenant or inure to Tenant's
benefit.

      19.2 Upon the occurrence of an Event of Default, Landlord may (but shall
not be obligated to) cure such default at Tenant's sole expense. Without
limiting the generality of the foregoing, Landlord may, at Landlord's option,
enter into and upon the Premises if Landlord determines in its sole discretion
that Tenant is not acting within a commercially reasonable time to maintain,
repair or replace anything for which Tenant is responsible under this Lease or
to otherwise effect compliance with its obligations under this Lease and correct
the same, without being deemed in any manner guilty of trespass, eviction or
forcible entry and detainer and without incurring any liability for any damage
or interruption of Tenant's business resulting therefrom and Tenant agrees to
reimburse Landlord within five (5) days of Landlord's demand as additional rent,
for any expenses which Landlord may incur in thus effecting compliance with
Tenant's obligations under this Lease, plus interest from the date of
expenditure by Landlord at the Wall Street Journal prime rate.

      19.3 Tenant understands and agrees that in entering into this Lease,
Landlord is relying upon receipt of all the Annual and Monthly Installments of
Rent to become due with respect to all the Premises originally leased hereunder
over the full Initial Term of this Lease for amortization, including interest at
the Amortization Rate. For purposes hereof, the "Concession Amount" shall be
defined as the aggregate of all amounts forgone or expended by Landlord as free
rent under the lease, under Exhibit B hereof for construction allowances
(excluding therefrom any amounts expended by Landlord for Landlord's Work, as
defined in Exhibit B), and for brokers' commissions payable by reason of this
Lease. Accordingly, Tenant agrees that if this Lease or Tenant's right to
possession of the Premises leased hereunder shall be terminated as of any date
("Default Termination Date") prior to the expiration of the full Initial Term
hereof by reason of a default of Tenant, there shall be due and owing to
Landlord as of the day prior to the Default Termination Date, as rent in
addition to all other amounts owed by Tenant as of such Date, the amount
("Unamortized Amount") of the Concession Amount determined as set forth below;
provided, however, that in the event that such amounts are recovered by Landlord
pursuant to any other provision of this Article 19, Landlord agrees that it
shall not attempt to recover such amounts pursuant to this Paragraph 19.3. For
the purposes hereof, the Unamortized Amount shall be determined in the same
manner as the remaining principal balance of a mortgage with interest at the
Amortization Rate payable in level payments over the same length of time as from
the effectuation of the Concession concerned to the end of the full Initial Term
of this Lease would be determined. The foregoing provisions shall also apply to
and upon any reduction of space in the Premises, as though such reduction were a
termination for Tenant's default, except that (i) the Unamortized Amount shall
be reduced by any amounts paid by Tenant to Landlord to effectuate such
reduction and (ii) the manner of application shall be that the Unamortized
Amount shall first be determined as though for a full termination as of the
Effective

                                       17
<PAGE>
Date of the elimination of the portion, but then the amount so determined shall
be multiplied by the fraction of which the numerator is the rentable square
footage of the eliminated portion and the denominator is the rentable square
footage of the Premises originally leased hereunder; and the amount thus
obtained shall be the Unamortized Amount.

      19.4 If, on account of any breach or default by Tenant in Tenant's
obligations under the terms and conditions of this Lease, it shall become
necessary or appropriate for Landlord to employ or consult with an attorney or
collection agency concerning or to enforce or defend any of Landlord's rights or
remedies arising under this Lease or to collect any sums due from Tenant, Tenant
agrees to pay all costs and fees so incurred by Landlord, including, without
limitation, reasonable attorneys' fees and costs. TENANT EXPRESSLY WAIVES ANY
RIGHT TO: (A) TRIAL BY JURY; AND (B) SERVICE OF ANY NOTICE REQUIRED BY ANY
PRESENT OR FUTURE LAW OR ORDINANCE APPLICABLE TO LANDLORDS OR TENANTS BUT NOT
REQUIRED BY THE TERMS OF THIS LEASE.

      19.5 Pursuit of any of the foregoing remedies shall not preclude pursuit
of any of the other remedies provided in this Lease or any other remedies
provided by law (all such remedies being cumulative), nor shall pursuit of any
remedy provided in this Lease constitute a forfeiture or waiver of any rent due
to Landlord under this Lease or of any damages accruing to Landlord by reason of
the violation of any of the terms, provisions and covenants contained in this
Lease.

      19.6 No act or thing done by Landlord or its agents during the Term shall
be deemed a termination of this Lease or an acceptance of the surrender of the
Premises, and no agreement to terminate this Lease or accept a surrender of said
Premises shall be valid, unless in writing signed by Landlord. No waiver by
Landlord of any violation or breach of any of the terms, provisions and
covenants contained in this Lease shall be deemed or construed to constitute a
waiver of any other violation or breach of any of the terms, provisions and
covenants contained in this Lease. Landlord's acceptance of the payment of
rental or other payments after the occurrence of an Event of Default shall not
be construed as a waiver of such Default, unless Landlord so notifies Tenant in
writing. Forbearance by Landlord in enforcing one or more of the remedies
provided in this Lease upon an Event of Default shall not be deemed or construed
to constitute a waiver of such Default or of Landlord's right to enforce any
such remedies with respect to such Default or any subsequent Default.

      19.7 To secure the payment of all rentals and other sums of money becoming
due from Tenant under this Lease, Landlord shall have and Tenant grants to
Landlord a first lien upon the leasehold interest of Tenant under this Lease,
which lien may be enforced in equity, and a continuing security interest upon
all goods, wares, equipment, fixtures, furniture, inventory, accounts, contract
rights, chattel paper and other personal property of Tenant situated on the
Premises, and such property shall not be removed therefrom without the consent
of Landlord until all arrearages in rent as well as any and all other sums of
money then due to Landlord under this Lease shall first have been paid and
discharged. Upon the occurrence of an Event of Default, Landlord shall have, in
addition to any other remedies provided in this Lease or by law, all rights and
remedies under the Uniform Commercial Code, including without limitation the
right to sell the property described in this Section 19.7 at public or private
sale upon five (5) days' notice to Tenant. Tenant shall execute all such
financing statements and other instruments

                                       18
<PAGE>
as shall be deemed necessary or desirable in Landlord's discretion to perfect
the security interest hereby created.

      19.8 Any and all property which may be removed from the Premises by
Landlord pursuant to the authority of this Lease or of law, to which Tenant is
or may be entitled, may be handled, removed and/or stored, as the case may be,
by or at the direction of Landlord but at the risk, cost and expense of Tenant,
and Landlord shall in no event be responsible for the value, preservation or
safekeeping thereof. Tenant shall pay to Landlord, upon demand, any and all
expenses incurred in such removal and all storage charges against such property
so long as the same shall be in Landlord's possession or under Landlord's
control. Any such property of Tenant not retaken by Tenant from storage within
thirty (30) days after removal from the Premises shall, at Landlord's option, be
deemed conveyed by Tenant to Landlord under this Lease as by a bill of sale
without further payment or credit by Landlord to Tenant.

      19.9 If more than one (1) Event of Default occurs during the Term or any
renewal thereof, Tenant's renewal options, expansion options, purchase options
and rights of first offer and/or refusal, if any are provided for in this Lease,
shall be null and void.

20.   TENANT'S BANKRUPTCY OR INSOLVENCY.

      20.1 If at any time and for so long as Tenant shall be subjected to the
provisions of the United States Bankruptcy Code or other law of the United
States or any state thereof for the protection of debtors as in effect at such
time (each a "Debtor's Law"):

            20.1.1 Tenant, Tenant as debtor-in-possession, and any trustee or
receiver of Tenant's assets (each a "Tenant's Representative") shall have no
greater right to assume or assign this Lease or any interest in this Lease, or
to sublease any of the Premises than accorded to Tenant in Article 9, except to
the extent Landlord shall be required to permit such assumption, assignment or
sublease by the provisions of such Debtor's Law. Without limitation of the
generality of the foregoing, any right of any Tenant's Representative to assume
or assign this Lease or to sublease any of the Premises shall be subject to the
conditions that:

                  20.1.1.1 Such Debtor's Law shall provide to Tenant's
Representative a right of assumption of this Lease which Tenant's Representative
shall have timely exercised and Tenant's Representative shall have fully cured
any default of Tenant under this Lease.

                  20.1.1.2 Tenant's Representative or the proposed assignee, as
the case shall be, shall have deposited with Landlord as security for the timely
payment of rent an amount equal to the larger of (a) three (3) months' rent and
other monetary charges accruing under this Lease; and (b) any sum specified in
Article 5; and shall have provided Landlord with adequate other assurance of the
future performance of the obligations of the Tenant under this Lease. Without
limitation, such assurances shall include, at least, in the case of assumption
of this Lease, demonstration to the satisfaction of the Landlord that Tenant's
Representative has and will continue to have sufficient unencumbered assets
after the payment of all secured obligations and administrative expenses to
assure Landlord that Tenant's Representative will have sufficient funds to
fulfill the obligations of Tenant under this Lease; and, in the case of
assignment,

                                       19
<PAGE>
submission of current financial statements of the proposed assignee, audited by
an independent certified public accountant reasonably acceptable to Landlord and
showing a net worth and working capital in amounts determined by Landlord to be
sufficient to assure the future performance by such assignee of all of the
Tenant's obligations under this Lease.

                  20.1.1.3 The assumption or any contemplated assignment of this
Lease or subleasing any part of the Premises, as shall be the case, will not
breach any provision in any other lease, mortgage, financing agreement or other
agreement by which Landlord is bound.

                  20.1.1.4 Landlord shall have, or would have had absent the
Debtor's Law, no right under Article 9 to refuse consent to the proposed
assignment or sublease by reason of the identity or nature of the proposed
assignee or sublessee or the proposed use of the Premises concerned.

21.   QUIET ENJOYMENT. Landlord represents and warrants that it has full right
and authority to enter into this Lease and that Tenant, while paying the rental
and performing its other covenants and agreements contained in this Lease, shall
peaceably and quietly have, hold and enjoy the Premises for the Term without
hindrance or molestation from Landlord subject to the terms and provisions of
this Lease. Landlord shall not be liable for any interference or disturbance by
other tenants or third persons, nor shall Tenant be released from any of the
obligations of this Lease because of such interference or disturbance.

22.   CASUALTY.

      22.1 In the event the Premises or the Building are damaged by fire or
other cause and in Landlord's reasonable estimation such damage can be
materially restored within one hundred eighty (180) days, Landlord shall
forthwith repair the same and this Lease shall remain in full force and effect,
except that Tenant shall be entitled to a proportionate abatement in rent from
the date of such damage. Such abatement of rent shall be made pro rata in
accordance with the extent to which the damage and the making of such repairs
shall interfere with the use and occupancy by Tenant of the Premises from time
to time. Within forty-five (45) days from the date of such damage, Landlord
shall notify Tenant, in writing, of Landlord's reasonable estimation of the
length of time within which material restoration can be made, and Landlord's
determination shall be binding on Tenant. For purposes of this Lease, the
Building or Premises shall be deemed "materially restored" if they are in such
condition as would not prevent or materially interfere with Tenant's use of the
Premises for the purpose for which it was being used immediately before such
damage.

      22.2 If such repairs cannot, in Landlord's reasonable estimation, be made
within one hundred eighty (180) days, Landlord and Tenant shall each have the
option of giving the other, at any time within ninety (90) days after such
damage, notice terminating this Lease as of the date of such damage. In the
event of the giving of such notice, this Lease shall expire and all interest of
the Tenant in the Premises shall terminate as of the date of such damage as if
such date had been originally fixed in this Lease for the expiration of the
Term. In the event that neither Landlord nor Tenant exercises its option to
terminate this Lease, then Landlord shall repair or

                                       20
<PAGE>
restore such damage, this Lease continuing in full force and effect, and the
rent hereunder shall be proportionately abated as provided in Section 22.1.

      22.3 Landlord shall not be required to repair or replace any damage or
loss by or from fire or other cause to any panelings, decorations, partitions,
additions, railings, ceilings, floor coverings, office fixtures or any other
property or improvements installed on the Premises by, or belonging to, Tenant.
Any insurance which may be carried by Landlord or Tenant against loss or damage
to the Building or Premises shall be for the sole benefit of the party carrying
such insurance and under its sole control.

      22.4 In the event that Landlord should fail to complete such repairs and
material restoration within sixty (60) days after the date estimated by Landlord
therefor as extended by this Section 22.4, Tenant may at its option and as its
sole remedy terminate this Lease by delivering written notice to Landlord,
within fifteen (15) days after the expiration of said period of time, whereupon
the Lease shall end on the date of such notice or such later date fixed in such
notice as if the date of such notice was the date originally fixed in this Lease
for the expiration of the Term; provided, however, that if construction is
delayed because of changes, deletions or additions in construction requested by
Tenant, strikes, lockouts, casualties, Acts of God, war, material or labor
shortages, government regulation or control or other causes beyond the
reasonable control of Landlord, the period for restoration, repair or rebuilding
shall be extended for the amount of time Landlord is so delayed.

      22.5 Notwithstanding anything to the contrary contained in this Article:
(a) Landlord shall not have any obligation whatsoever to repair, reconstruct, or
restore the Premises when the damages resulting from any casualty covered by the
provisions of this Article 22 occur during the last twelve (12) months of the
Term or any extension thereof, but if Landlord determines not to repair such
damages Landlord shall notify Tenant and if such damages shall render any
material portion of the Premises untenantable Tenant shall have the right to
terminate this Lease by notice to Landlord within fifteen (15) days after
receipt of Landlord's notice; and (b) in the event the holder of any
indebtedness secured by a mortgage or deed of trust covering the Premises or
Building requires that any insurance proceeds be applied to such indebtedness,
then Landlord shall have the right to terminate this Lease by delivering written
notice of termination to Tenant within fifteen (15) days after such requirement
is made by any such holder, whereupon this Lease shall end on the date of such
damage as if the date of such damage were the date originally fixed in this
Lease for the expiration of the Term.

      22.6 In the event of any damage or destruction to the Building or Premises
by any peril covered by the provisions of this Article 22, it shall be Tenant's
responsibility to properly secure the Premises and upon notice from Landlord to
remove forthwith, at its sole cost and expense, such portion of all of the
property belonging to Tenant or its licensees from such portion or all of the
Building or Premises as Landlord shall request.

23.   EMINENT DOMAIN. If all or any substantial part of the Premises shall be
taken or appropriated by any public or quasi-public authority under the power of
eminent domain, or conveyance in lieu of such appropriation, either party to
this Lease shall have the right, at its option, of giving the other, at any time
within thirty (30) days after such taking, notice

                                       21
<PAGE>
terminating this Lease, except that Tenant may only terminate this Lease by
reason of taking or appropriation, if such taking or appropriation shall be so
substantial as to materially interfere with Tenant's use and occupancy of the
Premises. If neither party to this Lease shall so elect to terminate this Lease,
the rental thereafter to be paid shall be adjusted on a fair and equitable basis
under the circumstances. In addition to the rights of Landlord above, if any
substantial part of the Building shall be taken or appropriated by any public or
quasi-public authority under the power of eminent domain or conveyance in lieu
thereof, and regardless of whether the Premises or any part thereof are so taken
or appropriated, Landlord shall have the right, at its sole option, to terminate
this Lease. Landlord shall be entitled to any and all income, rent, award, or
any interest whatsoever in or upon any such sum, which may be paid or made in
connection with any such public or quasi-public use or purpose, and Tenant
hereby assigns to Landlord any interest it may have in or claim to all or any
part of such sums, other than any separate award which may be made with respect
to Tenant's trade fixtures and moving expenses; Tenant shall make no claim for
the value of any unexpired Term.

24.   SALE BY LANDLORD. In event of a sale or conveyance by Landlord of the
Building, the same shall operate to release Landlord from any future liability
upon any of the covenants or conditions, expressed or implied, contained in this
Lease in favor of Tenant, and in such event Tenant agrees to look solely to the
responsibility of the successor in interest of Landlord in and to this Lease.
Except as set forth in this Article 24, this Lease shall not be affected by any
such sale and Tenant agrees to attorn to the purchaser or assignee. If any
security has been given by Tenant to secure the faithful performance of any of
the covenants of this Lease, Landlord may transfer or deliver said security, as
such, to Landlord's successor in interest and thereupon Landlord shall be
discharged from any further liability with regard to said security.

25.   ESTOPPEL CERTIFICATES. Within ten (10) days following any written request
which Landlord may make from time to time, Tenant shall execute and deliver to
Landlord or mortgagee or prospective mortgagee a sworn statement certifying: (a)
the date of commencement of this Lease; (b) the fact that this Lease is
unmodified and in full force and effect (or, if there have been modifications to
this Lease, that this lease is in full force and effect, as modified, and
stating the date and nature of such modifications); (c) the date to which the
rent and other sums payable under this Lease have been paid; (d) the fact that
there are no current defaults under this Lease by either Landlord or Tenant
except as specified in Tenant's statement; and (e) such other matters as may be
requested by Landlord. Landlord and Tenant intend that any statement delivered
pursuant to this Article 25 may be relied upon by any mortgagee, beneficiary or
purchaser, and Tenant shall be liable for all loss, cost or expense resulting
from the failure of any sale or funding of any loan caused by any material
misstatement contained in such estoppel certificate. Tenant irrevocably agrees
that if Tenant fails to execute and deliver such certificate within such ten
(10) day period Landlord or Landlord's beneficiary or agent may execute and
deliver such certificate on Tenant's behalf, and that such certificate shall be
fully binding on Tenant.

26.   SURRENDER OF PREMISES.

      26.1 Tenant shall arrange to meet Landlord for two (2) joint inspections
of the Premises, the first to occur at least thirty (30) days (but no more than
sixty (60) days) before the

                                       22
<PAGE>
last day of the Term, and the second to occur not later than forty-eight (48)
hours after Tenant has vacated the Premises. In the event of Tenant's failure to
arrange such joint inspections and/or participate in either such inspection,
Landlord's inspection at or after Tenant's vacating the Premises shall be
conclusively deemed correct for purposes of determining Tenant's responsibility
for repairs and restoration.

      26.2 All alterations, additions, and improvements in, on, or to the
Premises made or installed by or for Tenant, including carpeting (collectively,
"Alterations"), shall be and remain the property of Tenant during the Term. Upon
the expiration or sooner termination of the Term, all Alterations shall become a
part of the realty and shall belong to Landlord without compensation, and title
shall pass to Landlord under this Lease as by a bill of sale. At the end of the
Term or any renewal of the Term or other sooner termination of this Lease,
Tenant will peaceably deliver up to Landlord possession of the Premises,
together with all Alterations by whomsoever made, in the same conditions
received or first installed, broom clean and free of all debris, excepting only
ordinary wear and tear and damage by fire or other casualty. Notwithstanding the
foregoing, if Landlord elects by notice given to Tenant at least ten (10) days
prior to expiration of the Term, Tenant shall, at Tenant's sole cost, remove any
Alterations, including carpeting, so designated by Landlord's notice, and repair
any damage caused by such removal. Tenant must, at Tenant's sole cost, remove
upon termination of this Lease, any and all of Tenant's furniture, furnishings,
movable partitions of less than full height from floor to ceiling and other
trade fixtures and personal property (collectively, "Personalty"). Personalty
not so removed shall be deemed abandoned by the Tenant and title to the same
shall thereupon pass to Landlord under this Lease as by a bill of sale, but
Tenant shall remain responsible for the cost of removal and disposal of such
Personalty, as well as any damage caused by such removal. In lieu of requiring
Tenant to remove Alterations and Personalty and repair the Premises as
aforesaid, Landlord may, by written notice to Tenant delivered at least thirty
(30) days before the Termination Date, require Tenant to pay to Landlord, as
additional rent hereunder, the cost of such removal and repair in an amount
reasonably estimated by Landlord.

      26.3 All obligations of Tenant under this Lease not fully performed as of
the expiration or earlier termination of the Term shall survive the expiration
or earlier termination of the Term. Upon the expiration or earlier termination
of the Term, Tenant shall pay to Landlord the amount, as estimated by Landlord,
necessary to repair and restore the Premises as provided in this Lease and/or to
discharge Tenant's obligation for unpaid amounts due or to become due to
Landlord. All such amounts shall be used and held by Landlord for payment of
such obligations of Tenant, with Tenant being liable for any additional costs
upon demand by Landlord, or with any excess to be returned to Tenant after all
such obligations have been determined and satisfied. Any otherwise unused
Security Deposit shall be credited against the amount payable by Tenant under
this Lease.

27.   NOTICES. Any notice or document required or permitted to be delivered
under this Lease shall be addressed to the intended recipient, by fully prepaid
registered or certified United States Mail return receipt requested, or by
reputable independent contract delivery service furnishing a written record of
attempted or actual delivery, and shall be deemed to be delivered when tendered
for delivery to the addressee at its address set forth on the Reference Pages,
or at such other address as it has then last specified by written notice
delivered in accordance with this

                                       23
<PAGE>
Article 27, or if to Tenant at either its aforesaid address or its last known
registered office or home of a general partner or individual owner, whether or
not actually accepted or received by the addressee. Any such notice or document
may also be personally delivered if a receipt is signed by and received from,
the individual, if any, named in Tenant's Notice Address.

28.   TAXES PAYABLE BY TENANT. In addition to rent and other charges to be paid
by Tenant under this Lease, Tenant shall reimburse to Landlord, upon demand, any
and all taxes payable by Landlord (other than net income taxes) whether or not
now customary or within the contemplation of the parties to this Lease: (a)
upon, allocable to, or measured by or on the gross or net rent payable under
this Lease, including without limitation any gross income tax or excise tax
levied by the State, any political subdivision thereof, or the Federal
Government with respect to the receipt of such rent; (b) upon or with respect to
the possession, leasing, operation, management, maintenance, alteration, repair,
use or occupancy of the Premises or any portion thereof, including any sales,
use or service tax imposed as a result thereof; (c) upon or measured by the
Tenant's gross receipts or payroll or the value of Tenant's equipment,
furniture, fixtures and other personal property of Tenant or leasehold
improvements, alterations or additions located in the Premises; or (d) upon this
transaction or any document to which Tenant is a party creating or transferring
any interest of Tenant in this Lease or the Premises. In addition to the
foregoing, Tenant agrees to pay, before delinquency, any and all taxes levied or
assessed against Tenant and which become payable during the term hereof upon
Tenant's equipment, furniture, fixtures and other personal property of Tenant
located in the Premises.

29.   RELOCATION OF TENANT. Landlord, at its sole expense, on at least sixty
(60) days prior written notice, may require Tenant to move from the Premises to
other space of comparable size and decor in order to permit Landlord to
consolidate the space leased to Tenant with other adjoining space leased or to
be leased to another tenant. In the event of any such relocation, Landlord will
pay all expenses of preparing and decorating the new premises so that they will
be substantially similar to the Premises from which Tenant is moving, and
Landlord will also pay the expense of moving Tenant's furniture and equipment to
the relocated premises. In such event this Lease and each and all of the terms
and covenants and conditions hereof shall remain in full force and effect and
thereupon be deemed applicable to such new space except that revised Reference
Pages and a revised Exhibit A shall become part of this Lease and shall reflect
the location of the new premises.

30.   DEFINED TERMS AND HEADINGS. The Article headings shown in this Lease are
for convenience of reference and shall in no way define, increase, limit or
describe the scope or intent of any provision of this Lease. Any indemnification
or insurance of Landlord shall apply to and inure to the benefit of all the
following "Landlord Entities", being Landlord, Landlord's investment manager,
and the trustees, boards of directors, officers, general partners,
beneficiaries, stockholders, employees and agents of each of them. Any option
granted to Landlord shall also include or be exercisable by Landlord's trustee,
beneficiary, agents and employees, as the case may be. In any case where this
Lease is signed by more than one person, the obligations under this Lease shall
be joint and several. The terms "Tenant" and "Landlord" or any pronoun used in
place thereof shall indicate and include the masculine or feminine, the singular
or plural number, individuals, firms or corporations, and their and each of
their respective successors, executors, administrators and permitted assigns,
according to the context

                                       24
<PAGE>
hereof. The term "rentable area" shall mean the rentable area of the Premises or
the Building as calculated by the Landlord on the basis of the plans and
specifications of the Building including a proportionate share of any common
areas. Tenant hereby accepts and agrees to be bound by the figures for the
rentable square footage of the Premises and Tenant's Proportionate Share shown
on the Reference Pages; however, Landlord may adjust either or both figures if
there is manifest error, addition or subtraction to the Building or any business
park or complex of which the Building is a part, remeasurement or other
circumstance reasonably justifying adjustment. The term "Building" refers to the
structure in which the Premises are located and the common areas (parking lots,
sidewalks, landscaping, etc.) appurtenant thereto. If the Building is part of a
larger complex of structures, the term "Building" may include the entire
complex, where appropriate (such as shared Expenses or Taxes) and subject to
Landlord's reasonable discretion.

31.   TENANT'S AUTHORITY. If Tenant signs as a corporation, partnership, trust
or other legal entity each of the persons executing this Lease on behalf of
Tenant represents and warrants that Tenant has been and is qualified to do
business in the state in which the Building is located, that the entity has full
right and authority to enter into this Lease, and that all persons signing on
behalf of the entity were authorized to do so by appropriate actions. Tenant
agrees to deliver to Landlord, simultaneously with the delivery of this Lease, a
corporate resolution, proof of due authorization by partners, opinion of counsel
or other appropriate documentation reasonably acceptable to Landlord evidencing
the due authorization of Tenant to enter into this Lease.

32.   FINANCIAL STATEMENTS AND CREDIT REPORTS. At Landlord's request, Tenant
shall deliver to Landlord a copy, certified by an officer of Tenant as being a
true and correct copy, of Tenant's most recent audited financial statement, or,
if unaudited, certified by Tenant's chief financial officer as being true,
complete and correct in all material respects. Tenant hereby authorizes Landlord
to obtain one or more credit reports on Tenant at any time, and shall execute
such further authorizations as Landlord may reasonably require in order to
obtain a credit report.

33.   COMMISSIONS. Each of the parties represents and warrants to the other that
it has not dealt with any broker or finder in connection with this Lease, except
as described on the Reference Pages.

34.   TIME AND APPLICABLE LAW. Time is of the essence of this Lease and all of
its provisions. This Lease shall in all respects be governed by the laws of the
state in which the Building is located.

35.   SUCCESSORS AND ASSIGNS. Subject to the provisions of Article 9, the terms,
covenants and conditions contained in this Lease shall be binding upon and inure
to the benefit of the heirs, successors, executors, administrators and assigns
of the parties to this Lease.

36.   ENTIRE AGREEMENT. This Lease, together with its exhibits, contains all
agreements of the parties to this Lease and supersedes any previous
negotiations. There have been no representations made by the Landlord or any of
its representatives or understandings made between the parties other than those
set forth in this Lease and its exhibits. This Lease may not be modified except
by a written instrument duly executed by the parties to this Lease.

                                       25
<PAGE>
37.   EXAMINATION NOT OPTION. Submission of this Lease shall not be deemed to be
a reservation of the Premises. Landlord shall not be bound by this Lease until
it has received a copy of this Lease duly executed by Tenant and has delivered
to Tenant a copy of this Lease duly executed by Landlord, and until such
delivery Landlord reserves the right to exhibit and lease the Premises to other
prospective tenants. Notwithstanding anything contained in this Lease to the
contrary, Landlord may withhold delivery of possession of the Premises from
Tenant until such time as Tenant has paid to Landlord any security deposit
required by Article 5, the first month's rent as set forth in Article 3 and any
sum owed pursuant to this Lease.

38.   RECORDATION. Tenant shall not record or register this Lease or a short
form memorandum hereof without the prior written consent of Landlord, and then
shall pay all charges and taxes incident such recording or registration.

39.   LIMITATION OF LANDLORD'S LIABILITY. Redress for any claim against Landlord
under this Lease shall be limited to and enforceable only against and to the
extent of Landlord's interest in the Building. The obligations of Landlord under
this Lease are not intended to be and shall not be personally binding on, nor
shall any resort be had to the private properties of, any of its or its
investment manager's trustees, directors, officers, partners, beneficiaries,
members, stockholders, employees, or agents, and in no case shall Landlord be
liable to Tenant hereunder for any lost profits, damage to business, or any form
of special, indirect or consequential damages.

LANDLORD:                                     TENANT:

SFERS REAL ESTATE CORP. A,                    SCOLR, Inc., D/B/A/ Nutraceutix,
a Delaware corporation                        Inc., a Delaware corporation
DBA:   SFERS REAL ESTATE A

By:    RREEF Management Company,
       a Delaware corporation

By:/s/ Chris Eckmann                          By:  /s/ Steve Moger
   --------------------------------               ------------------------------

Name:  Chris Eckmann                          Name:  Steve Moger

Title: District Manager                       Title: Chief Financial Officer

Dated: 4/4/03                                 Dated: 3/26/03
      -----------------------------                 ----------------------------

                                       26EXHIBIT 4.01

                                 INTERLAND, INC.

                           2002 EQUITY INCENTIVE PLAN

                           As adopted January 29, 2002

     1. PURPOSE.  The purpose of this Plan is to provide  incentives to attract,
retain and motivate  eligible persons whose present and potential  contributions
are  important  to  the  success  of  Interland,  Inc.  (the  "COMPANY")  or its
Subsidiaries,  by offering  them an  opportunity  to  participate  in the future
performance  of the Company  through  awards of Options.  Capitalized  terms not
defined in the text are defined in Section 21 hereof.

     2. SHARES SUBJECT TO THE PLAN.

          2.1 Number of Shares Available. Subject to Sections 2.2 and 16 hereof,
6,500,000 Shares are available for grant and issuance under the Plan. Subject to
Sections 2.2 and 16 hereof,  Shares subject to Awards  previously  granted under
this Plan will again be  available  for grant and  issuance in  connection  with
future Awards under this Plan to the extent such Shares: (i) cease to be subject
to issuance of Options  without  being  exercised;  (ii) are subject to an Award
granted  hereunder  but the  Shares  subject  to such  Award  are  forfeited  or
repurchased by the Company at the original issue price;  or (iii) are subject to
an Award that otherwise  terminates  without  Shares being issued.  No more than
65,000,000 shares shall be issued as ISOs. At all times the Company will reserve
and keep available a sufficient  number of Shares as will be required to satisfy
the requirements of all Awards granted and outstanding under this Plan.

          2.2 Adjustment of Shares.  In the event that the number of outstanding
shares of Company Common Stock is changed by a stock dividend, recapitalization,
stock split, reverse stock split, subdivision, combination,  reclassification or
similar change in the capital  structure of the Company  without  consideration,
then (i) the number of Shares  reserved for issuance  under this Plan,  (ii) the
Exercise  Prices of and number of Shares  subject to  outstanding  Options,  and
(iii) the number of Shares that may be granted pursuant to Section 3, below will
be proportionately adjusted,  subject to any required action by the Board or the
stockholders  of the Company and compliance  with  applicable  securities  laws;
provided,  however, that fractions of a Share will not be issued but will either
be paid in cash at the Fair Market Value of such  fraction of a Share or will be
rounded down to the nearest whole Share,  as determined  by the  Committee;  and
provided, further, that the Exercise Price of any Option may not be decreased to
below the par value of the Shares.

     3. ELIGIBILITY.  ISOs may be granted only to employees  (including officers
and  directors  who  are  also  employees)  of the  Company  or of a  Parent  or
Subsidiary  of  the  Company.  NQSOs  may be  granted  to  employees,  officers,
directors,  consultants,  independent contractors and advisors of the Company or
any  Parent or  Subsidiary  of the  Company;  provided  that  such  consultants,
contractors  and advisors  render bona fide services not in connection  with the
offer and sale of securities in a capital-raising  transaction.  A person may be
granted  more than one Award  under this Plan.  No person  will be  eligible  to
receive more than 2,000,000 Shares in any calendar year under this Plan pursuant

<PAGE>

to the grant of Awards  hereunder,  other than new employees of the Company or a
Subsidiary  (including  new employees who are also officers and directors of the
Company  or a  Subsidiary),  who are  eligible  to  receive  up to a maximum  of
4,000,000 Shares in the calendar year in which they commence their employment.

     4. ADMINISTRATION.

          4.1  Committee  Authority.  This  Plan  will  be  administered  by the
Committee or the Board if no  Committee is created by the Board.  Subject to the
general purposes, terms and conditions of this Plan, and to the direction of the
Board,  the Committee will have full power to implement and carry out this Plan.
Without limitation, the Committee will have the authority to:

          (a)  construe  and  interpret  this Plan,  any Notice of Grant and any
               other agreement or document executed pursuant to this Plan;

          (b)  prescribe,  amend and rescind rules and  regulations  relating to
               this Plan;

          (c)  approve persons to receive Awards;

          (d)  determine the form and terms of Awards;

          (e)  determine the number of Shares or other consideration  subject to
               Awards;

          (f)  determine  whether Awards will be granted singly,  in combination
               with, in tandem with, in replacement of, or as  alternatives  to,
               other Awards under this Plan or awards under any other  incentive
               or compensation plan of the Company or a Subsidiary;

          (g)  grant waivers of any conditions of this Plan or of any Award;

          (h)  determine the terms of vesting,  exercisability,  transferability
               and payment of Awards;

          (i)  extend  the   vesting   period  or  exercise   period   beyond  a
               Participant's Termination Date;

          (j)  accelerate the vesting or exercisability of any Award,  including
               but  not   limited  to   acceleration   following   a   Corporate
               Transaction;

          (k)  correct  any  defect,  supply  any  omission,  or  reconcile  any
               inconsistency  in this Plan, any Award,  any Notice of Grant, and
               any Exercise Agreement;

          (l)  determine whether an Award has been earned; and

          (m)  make all other  determinations  necessary  or  advisable  for the
               administration of this Plan.

                                       2
<PAGE>

          4.2 Committee Discretion. Unless in contravention of any express terms
of this Plan or Award, any  determination  made by the Committee with respect to
any Award will be made in its sole discretion either (i) at the time of grant of
the Award,  or (ii) subject to Section 5.8 hereof,  at any later time.  Any such
determination  will be final and binding on the Company,  any  Subsidiary and on
all persons  having an  interest in any Award under this Plan.  The Board or the
Committee  may delegate to one or more  officers who are members of the Board of
the Company the  authority to grant an Award under this Plan to  non-Section  16
officers.  Any dispute  regarding  the  interpretation  of the Plan or any Award
Agreement  shall be submitted by Participant or the Company to the Committee for
review.  The  resolution of such a dispute by the  Committee  shall be final and
binding on the Company and Participant.

     5. OPTIONS.  The  Committee may grant Options to eligible  persons and will
determine  (a)  whether  the  Options  will be ISOs or NQSOs;  (b) the number of
Shares  subject to the Option,  (c) the  Exercise  Price of the Option,  (d) the
period  during  which the Option may be  exercised,  and (e) all other terms and
conditions of the Option, subject to the following:

          5.1 Form of Option Grant.  Each Option granted under this Plan will be
evidenced by a Notice of Grant ("NOTICE OF GRANT") that will expressly  identify
the  Option  as an ISO or  NQSO,  and  will be in such  form  and  contain  such
provisions  (which need not be the same for each  Participant)  as the Committee
may from time to time approve,  and which will comply with and be subject to the
terms and conditions of this Plan.

          5.2 Date of Grant.  The date of grant of an Option will be the date on
which the Committee makes the determination to grant such Option, unless a later
date is otherwise specified by the Committee.  The Notice of Grant and a copy of
this Plan will be delivered to the  Participant  within a reasonable  time after
the granting of the Option.

          5.3  Exercise  Period.  Options  may be  exercisable  immediately  but
subject to repurchase pursuant to Section 10 hereof or may be exercisable within
the times or upon the events  determined  by the  Committee  as set forth in the
Notice of Grant  governing such Option.  The Notice of Grant shall set forth the
last date that the option may be exercised  (the  "EXPIRATION  DATE");  provided
further that no Option will be  exercisable  after the  expiration  of ten years
from the date the Option is granted; and provided further that no ISO granted to
a Ten Percent Stockholder will be exercisable after the expiration of five years
from the date the Option is granted.  The Committee also may provide for Options
to  become  exercisable  at one  time or  from  time to  time,  periodically  or
otherwise,  in such number of Shares or  percentage  of Shares as the  Committee
determines.

          5.4 Exercise Price. The Exercise Price of an Option will be determined
by the  Committee  when the Option is granted  and may be less than Fair  Market
Value  (but not less than the par value of the  Shares);  provided  that (i) the
Exercise  Price of an Option will not be less than the Fair Market  Value of the
Shares on the date of grant and (ii) the Exercise  Price of any ISO granted to a
Ten Percent  Stockholder  will not be less than 110% of the Fair Market Value of
the Shares on the date of grant.  Payment for the Shares  purchased must be made
in accordance with Section 6 hereof and the Notice of Grant.

                                       3
<PAGE>

          5.5 Method of Exercise.  Options may be exercised  only by delivery to
the  Company  of a  written  stock  option  exercise  agreement  (the  "EXERCISE
AGREEMENT") in a form approved by the Committee  (which need not be the same for
each  Participant).  The Exercise  Agreement will state (i) the number of Shares
being  purchased,  (ii) the  restrictions  imposed on the Shares purchased under
such Exercise Agreement,  if any, and (iii) such  representations and agreements
regarding  Participant's  investment  intent and access to information and other
matters,  if any, as may be required or  desirable by the Company to comply with
applicable securities laws. Participant shall execute and deliver to the Company
the Exercise  Agreement together with payment in full of the Exercise Price, and
any applicable taxes, for the number of Shares being purchased.

          5.6 Termination. Subject to earlier termination pursuant to Section 16
hereof  and  notwithstanding  the  exercise  periods  set forth in the Notice of
Grant, exercise of an Option will always be subject to the following:

          (a)  If the Participant is Terminated for any reason other than death,
               Disability or for Cause,  then the  Participant may exercise such
               Participant's  Options  only to the extent that such  Options are
               exercisable upon the Termination Date or as otherwise  determined
               by  the  Committee.   Such  Options  must  be  exercised  by  the
               Participant,  if at all,  as to all or some of the Vested  Shares
               calculated  as  of  the  Termination  Date  or  such  other  date
               determined  by the  Committee,  within thirty (30) days after the
               Termination  Date  (or  within  such  longer  time  period,   not
               exceeding five (5) years,  after the  Termination  Date as may be
               determined by the Committee), but in any event, no later than the
               expiration date of the Options.

          (b)  If the Participant is Terminated  because of Participant's  death
               or Disability  (or the  Participant  dies within thirty (30) days
               after a  Termination  other than for Cause),  then  Participant's
               Options may be exercised only to the extent that such Options are
               exercisable  by  Participant  on  the  Termination   Date  or  as
               otherwise  determined  by the  Committee.  Such  options  must be
               exercised by Participant (or Participant's  legal  representative
               or  authorized  assignee),  if at  all,  as to all or some of the
               Vested Shares calculated as of the Termination Date or such other
               date determined by the Committee, within twelve (12) months after
               the  Termination  Date (or within such shorter  time period,  not
               less than six (6) months, or within such longer time period,  not
               exceeding five (5) years,  after the  Termination  Date as may be
               determined by the Committee),  but in any event no later than the
               expiration date of the Options.

          (c)  If the  Participant is terminated for Cause,  then  Participant's
               Options shall expire on such  Participant's  Termination Date, or
               at such later time and on such  conditions  as are  determined by
               the Committee.

                                       4
<PAGE>

          5.7  Limitations  on Exercise.  The Committee may specify a reasonable
minimum  number of Shares that may be  purchased  on any  exercise of an Option,
provided that such minimum number will not prevent  Participant  from exercising
the Option for the full number of Shares for which it is then exercisable.

          5.8  Limitations on ISOs. The aggregate Fair Market Value  (determined
as of the date of grant) of Shares  with  respect to which ISOs are  exercisable
for the first time by a Participant  during any calendar year (under the Plan or
under any other  incentive  stock  option  plan of the  Company or any Parent or
Subsidiary of the Company) shall not exceed  $100,000.  If the Fair Market Value
of Shares on the date of grant with  respect to which ISOs are  exercisable  for
the first time by a Participant  during any calendar year exceeds $100,000,  the
Options for the first  $100,000  worth of Shares to become  exercisable  in that
calendar  year will be ISOs,  and the  Options for the Shares with a Fair Market
Value in excess of $100,000 that become  exercisable  in that calendar year will
be NQSOs. If the Code is amended after the Effective Date of the Plan to provide
for a different limit on the Fair Market Value of Shares permitted to be subject
to ISOs, such different limit shall be automatically  incorporated into the Plan
and will apply to any Options granted after the effective date of the amendment.

          5.9  Notice  of  Disqualifying  Dispositions  of  Shares  Acquired  on
Exercise of an ISO. If a Participant  sells or otherwise  disposes of any Shares
acquired  pursuant  to the  exercise of an ISO on or before the later of (1) the
date two  years  after the Date of  Grant,  and (2) the date one year  after the
exercise  of the  ISO (in  either  case,  a  "DISQUALIFYING  DISPOSITION"),  the
Participant must immediately  notify the Company in writing of such disposition.
The  Participant  may be subject to income tax withholding by the Company on the
compensation  income  recognized  by  the  Participant  from  the  Disqualifying
Disposition.

          5.10  Modification,  Extension or Renewal.  The  Committee may modify,
extend or renew  outstanding  Options and  authorize the grant of new Options in
substitution  therefor,  provided  that any such  action  may not,  without  the
written consent of a Participant,  impair any of such Participant's rights under
any  Option  previously  granted;  and,  provided  further,  that the  modified,
extended,  renewed or new Option  may not have a lower  Exercise  Price than the
outstanding Option. Any outstanding ISO that is modified,  extended,  renewed or
otherwise  altered  shall be treated in  accordance  with Section  424(h) of the
Code. The Committee may reduce the Exercise Price of outstanding Options without
the consent of  Participants  affected,  by a written notice to them;  provided,
however,  that the Exercise Price may not be reduced below the minimum  Exercise
Price that would be permitted  under  Section 5.4 hereof for Options  granted on
the date the action is taken to reduce the Exercise  Price;  provided,  further,
that the Exercise  Price will not be reduced  below the par value of the Shares,
if any.

     6. PAYMENT FOR SHARE PURCHASES.

          6.1 Payment. Payment for Shares purchased pursuant to this Plan may be
made in cash (by check) or, where expressly  approved for the Participant by the
Committee and where permitted by law:

          (a)  by  cancellation  of  indebtedness of the Company or a Subsidiary
               owed to the Participant;

                                       5
<PAGE>

          (b)  by surrender  of shares  that:  (i) either (A) have been owned by
               Participant  for more than six (6)  months and have been paid for
               within the  meaning  of SEC Rule 144 (and,  if such  shares  were
               purchased from the Company by use of a promissory note, such note
               has been  fully  paid with  respect  to such  shares) or (B) were
               obtained by  Participant  in the public market and (ii) are clear
               of all liens, claims, encumbrances or security interests;

          (c)  by tender of a full recourse promissory note having such terms as
               may be approved by the Committee  and bearing  interest at a rate
               sufficient to avoid  imputation of income under  Sections 483 and
               1274 of the Code and any adverse accounting treatments; provided,
               however,  that Participants who are not employees or directors of
               the  Company or a  Subsidiary  will not be  entitled  to purchase
               Shares  with a  promissory  note  unless  the note is  adequately
               secured by collateral other than the Shares;  provided,  further,
               that the portion of the Exercise  Price equal to the par value of
               the  Shares  must be paid in cash or  other  legal  consideration
               permitted by law;

          (d)  by waiver of compensation  due or accrued to the Participant from
               the Company or a Subsidiary for services rendered;

          (e)  with respect only to purchases  upon  exercise of an Option,  and
               provided  that a public  market for the  Company's  stock exists:
               through a "same day sale"  commitment  from the Participant and a
               broker-dealer  that is a member of the  National  Association  of
               Securities  Dealers (an "NASD  DEALER")  whereby the  Participant
               irrevocably  elects to exercise  the Option and to sell a portion
               of the Shares so purchased  sufficient to pay the total  Exercise
               Price,  and  whereby  the NASD Dealer  irrevocably  commits  upon
               receipt  of such  Shares  to  forward  the total  Exercise  Price
               directly to the Company; or

          (f)  by any combination of the foregoing.

     7. WITHHOLDING TAXES.

          7.1  Withholding  Generally.  Whenever  Shares  are  to be  issued  in
satisfaction  of Awards  granted  under this Plan,  the  Company may require the
Participant  to remit to the Company an amount  sufficient  to satisfy  federal,
state  and local  withholding  tax  requirements  prior to the  delivery  of any
certificate or certificates for such Shares. Whenever, under this Plan, payments
in  satisfaction  of Awards are to be made in cash by the Company,  such payment
will be net of an amount sufficient to satisfy federal,  state, and local income
and employment withholding tax requirements.

          7.2 Stock Withholding.  When, under applicable tax laws, a Participant
incurs tax  liability  in  connection  with the exercise or vesting of any Award
that is subject to tax  withholding  and the Participant is obligated to pay the
Company  the amount  required  to be  withheld,  the  Committee  may in its sole
discretion  allow  the  Participant  to  satisfy  the  minimum  withholding  tax
obligation by electing to have the Company withhold from the Shares to be issued
that  minimum  number of Shares  having a Fair Market Value equal to the minimum
amount required to be withheld, determined on the date that the amount of tax to
be  withheld  is to be  determined;  but in no event will the  Company  withhold

                                       6
<PAGE>

Shares if such withholding  would result in adverse  accounting  consequences to
the Company or a  Subsidiary.  All  elections  by a  Participant  to have Shares
withheld  for this  purpose  will be made in  accordance  with the  requirements
established  by the  Committee  for such  elections  and be in writing in a form
acceptable to the Committee.

     8. PRIVILEGES OF STOCK OWNERSHIP.

          8.1 Voting and Dividends.  No Participant  will have any of the rights
of a  stockholder  with respect to any Shares until the Shares are issued to the
Participant. After Shares are issued to the Participant, the Participant will be
a  stockholder  and have all the rights of a  stockholder  with  respect to such
Shares,  including  the  right  to vote  and  receive  all  dividends  or  other
distributions  made or paid with respect to such Shares.  The  Participant  will
have no right to retain such stock dividends or stock distributions with respect
to Unvested  Shares  that are  repurchased  pursuant  to Section 10 hereof.  The
Company  will comply  with any state blue sky  regulations  with  respect to the
voting rights of Common Stock.

     9. TRANSFERABILITY.

          9.1 General Rule.  Except as otherwise  provided in this Section 9, no
Award and no interest therein, shall be sold, pledged,  assigned,  hypothecated,
transferred  or disposed  of in any manner  other than by will or by the laws of
descent  and  distribution  and no  Award  may be  made  subject  to  execution,
attachment or similar process.

          9.2 Awards  Other Than NQSOs.  All Awards  other than NQSO's  shall be
exercisable  (a) during a  Participant's  lifetime  only by  Participant  or the
Participant's  guardian  or legal  representative;  and (b) after  Participant's
death, by the legal representative of the Participant's heirs or legatees.

          9.3 NQSOs. Unless otherwise restricted by the Committee, an NQSO shall
be  exercisable:   (i)  during  the  Participant's  lifetime  only  by  (A)  the
Participant,  (B) the  Participant's  guardian  or legal  representative,  (C) a
Family  Member  of the  Participant  who has  acquired  the  NQSO by  "permitted
transfer;" or (ii) after Participant's death, by the legal representative of the
Participant's  heirs or legatees.  "Permitted  transfer" means, as authorized by
this Plan and the Committee in an NQSO, any transfer effected by the Participant
during the  Participant's  lifetime  of an  interest  in such NQSO but only such
transfers which are by gift or domestic  relations  order. A permitted  transfer
does not  include  any  transfer  for value and  neither  of the  following  are
transfers  for value:  (a) a transfer  of under a  domestic  relations  order in
settlement  of marital  property  rights or (b) a transfer to an entity in which
more than fifty percent of the voting  interests are owned by Family  Members or
the Participant in exchange for an interest in that entity.

     10. RESTRICTIONS ON SHARES. At the discretion of the Committee, the Company
may reserve to itself and/or its  assignee(s)  in the Notice of Grant a right to
repurchase Unvested Shares held by a Participant for cash and/or cancellation of
purchase  money  indebtedness  owed  to  the  Company  or a  Subsidiary  by  the

                                       7
<PAGE>

Participant  following  such  Participant's  Termination  at any time within the
later of ninety (90) days after the Participant's  Termination Date and the date
the Participant  purchases Shares under the Plan at the  Participant's  Exercise
Price.

     11. CERTIFICATES. All certificates for Shares or other securities delivered
under this Plan  (whether in physical or  electronic  form,  as the case may be)
will be subject to such stock transfer orders, legends and other restrictions as
the Committee may deem necessary or advisable,  including restrictions under any
applicable federal,  state or foreign securities law, or any rules,  regulations
and other  requirements of the SEC or any stock exchange or automated  quotation
system upon which the Shares may be listed or quoted.

     12.  ESCROW;   PLEDGE  OF  SHARES.   To  enforce  any   restrictions  on  a
Participant's  Shares set forth in Section 10 hereof,  the Committee may require
the Participant to deposit all certificates  representing Shares,  together with
stock  powers  or other  instruments  of  transfer  approved  by the  Committee,
appropriately  endorsed in blank, with the Company or an agent designated by the
Company to hold in escrow until such restrictions have lapsed or terminated. The
Committee  may cause a legend or legends  referencing  such  restrictions  to be
placed on the  certificates.  Any  Participant  who is  permitted  to  execute a
promissory  note as partial or full  consideration  for the  purchase  of Shares
under this Plan will be required  to pledge and deposit  with the Company all or
part of the  Shares  so  purchased  as  collateral  to  secure  the  payment  of
Participant's  obligation to the Company under the  promissory  note;  provided,
however,  that the Committee may require or accept other or additional  forms of
collateral  to secure the  payment of such  obligation  and,  in any event,  the
Company will have full recourse  against the  Participant  under the  promissory
note notwithstanding any pledge of the Participant's Shares or other collateral.
In  connection  with any pledge of the Shares,  Participant  will be required to
execute and deliver a written  pledge  agreement  in such form as the  Committee
will from time to time approve.

     13.  EXCHANGE AND BUYOUT OF AWARDS.  The Committee may, at any time or from
time to  time,  authorize  the  Company,  with  the  consent  of the  respective
Participants, to issue new Awards in exchange for the surrender and cancellation
of any or all  outstanding  Awards.  The  Committee  may at any  time buy from a
Participant an Award previously  granted with payment in cash,  shares of Common
Stock of the Company or other consideration,  based on such terms and conditions
as the Committee and the Participant may agree.

     14.  SECURITIES LAW AND OTHER REGULATORY  COMPLIANCE.  An Award will not be
effective  unless such Award is in compliance  with all  applicable  federal and
state securities  laws, rules and regulations of any governmental  body, and the
requirements of any stock exchange or automated  quotation system upon which the
Shares may then be listed or quoted,  as they are in effect on the date of grant
of the Award and also on the date of exercise or other issuance. Notwithstanding
any other  provision in this Plan,  the Company will have no obligation to issue
or deliver  certificates  for Shares under this Plan prior to (i)  obtaining any
approvals from governmental  agencies that the Company  determines are necessary
or  advisable,  and/or (ii)  compliance  with any  exemption,  completion of any
registration  or other  qualification  of such Shares under any state or federal

                                       8
<PAGE>

law or  ruling  of any  governmental  body  that the  Company  determines  to be
necessary or advisable.  The Company will not be under an obligation to register
the  Shares  with  the  SEC  or  to  effect   compliance   with  the  exemption,
registration,  qualification  or listing  requirements  of any state  securities
laws, stock exchange or automated  quotation system, and neither the Company nor
any Subsidiary will have any liability for any inability or failure to do so.

     15. NO  OBLIGATION  TO EMPLOY.  Nothing  in this Plan or any Award  granted
under this Plan will confer or be deemed to confer on any  Participant any right
to  continue in the employ of, or to continue  any other  relationship  with the
Company  or a  Subsidiary  or limit in any way the  right  of the  Company  or a
Subsidiary to terminate  Participant's  employment or other  relationship at any
time, with or without Cause.

     16. CORPORATE TRANSACTIONS AND CHANGE IN CONTROL.

          16.1 Assumption or Replacement of Awards by Acquiring Corporation.  In
the event of a Change in Control all  outstanding  Options  shall  become  fully
exercisable,  and such  Options  shall be assumed or replaced  by the  Acquiring
Corporation which  assumption,  conversion or replacement will be binding on all
Participants.

          16.2  Replacement  Awards.  Replacement  Options  shall be at least as
favorable to Participants in every respect as those replaced.

          16.3  Assumption of Awards by the Company.  The Company,  from time to
time,  also may  substitute  or assume  outstanding  awards  granted  by another
company,  whether in  connection  with an  acquisition  of such other company or
otherwise,  by either (i) granting an Award under this Plan in  substitution  of
such other company's award or (ii) assuming such award as if it had been granted
under this Plan if the terms of such assumed  award could be applied to an Award
granted under this Plan. Such  substitution or assumption will be permissible if
the holder of the  substituted  or assumed  award would have been eligible to be
granted an Award  under this Plan if the other  company had applied the rules of
this Plan to such grant.  In the event the Company  assumes an award  granted by
another  company,  the terms and conditions of such award will remain  unchanged
(except  that the  exercise  price and the number and nature of shares  issuable
upon exercise of any such option will be adjusted  appropriately).  In the event
the  Company  elects to grant a new Option  rather  than  assuming  an  existing
option, such new Option may be granted with a similarly adjusted Exercise Price.

     17.  ADOPTION.  This  Plan  will  become  effective  on the date that it is
adopted by the Board (the "EFFECTIVE DATE").

     18. TERM OF  PLAN/GOVERNING  LAW.  Unless  earlier  terminated  as provided
herein,  this Plan will  terminate ten (10) years from the Effective Date or, if
earlier,  the  date of  stockholder  approval.  This  Plan  and  all  agreements
hereunder  shall be governed by and construed in accordance with the laws of the
State of Minnesota.

     19.  AMENDMENT OR TERMINATION OF PLAN.  Subject to Section 5.8 hereof,  the
Board may at any time  terminate  or amend this Plan in any  respect,  including

                                       9
<PAGE>

without limitation  amendment of any form of Notice of Grant or instrument to be
executed pursuant to this Plan

     20.  NONEXCLUSIVITY  OF THE PLAN.  Neither the adoption of this Plan by the
Board  nor any  provision  of  this  Plan  will be  construed  as  creating  any
limitations  on the power of the  Board to adopt  such  additional  compensation
arrangements  as it may  deem  desirable,  including,  without  limitation,  the
granting of stock  options and other  equity  awards  otherwise  than under this
Plan, and such  arrangements  may be either  generally  applicable or applicable
only in specific cases.

     21.  DEFINITIONS.  As used in this Plan, the following  terms will have the
following meanings:

          "ACQUIRING  CORPORATION"  means  an  entity  which  as a  result  of a
Business  Combination owns Interland or substantially all of Interland's  assets
directly or through one or more Subsidiaries.

          "AWARD" means any award of ISOs or NQSOs under this Plan.

          "BENEFICIAL OWNER" with respect to a Person, means securities of which
that Person is a beneficial owner as defined in Rule 13d-3 promulgated under the
Exchange Act.

          "BOARD" means the Board of Directors of the Company.

          "BUSINESS COMBINATION" means a merger, consolidation,  reorganization,
recapitalization  or statutory share exchange  involving  Interland or a sale or
other disposition of all or substantially all of the assets of Interland.

          "CAUSE"  means  Termination  because  of  (i)  any  willful,  material
violation by the Participant of any law or regulation applicable to the business
of the Company or a Subsidiary, the Participant's conviction for, or guilty plea
to, a felony or a crime involving moral turpitude,  or any willful  perpetration
by the Participant of a common law fraud, (ii) the  Participant's  commission of
an act of personal  dishonesty which involves personal profit in connection with
the Company,  a Subsidiary  or any other entity  having a business  relationship
with the Company,  (iii) any material breach by the Participant of any provision
of any agreement or  understanding  between the Company or a Subsidiary  and the
Participant  regarding  the terms of the  Participant's  service as an employee,
officer,  director  or  consultant  to the  Company or a  Subsidiary,  including
without  limitation,  the  willful  and  continued  failure  or  refusal  of the
Participant to perform the material  duties  required of such  Participant as an
employee, officer, director or consultant of the Company or a Subsidiary,  other
than as a result of having a Disability, or a breach of any applicable invention
assignment  and  confidentiality  agreement  or similar  agreement  between  the
Company or a Subsidiary and the Participant, (iv) Participant's disregard of the
policies of the Company or a Subsidiary so as to cause loss, damage or injury to
the property, reputation or employees of the Company or a Subsidiary, or (v) any
other  misconduct  by the  Participant  which  is  materially  injurious  to the
financial  condition  or  business  reputation  of, or is  otherwise  materially
injurious to, the Company or a Subsidiary.

                                       10
<PAGE>

          "CHANGE IN CONTROL" means:

          (i) a change in the beneficial  ownership of Interland's  voting stock
(arising  other than by means of a tender offer) such that any Person  becomes a
Beneficial   Owner,   directly  or   indirectly,   of  securities  of  Interland
representing a Control Share. A "Change in Control" shall not include  ownership
by  any  Person,  who  (A) as of the  date  hereof  (January  29,  2002)  is the
Beneficial  Owner  of  securities  representing  a  Control  Share  or (B) is an
employee  benefit plan (or related trust) sponsored or maintained by the Company
or any 90% or more owned Subsidiary of Interland;

          (ii)  holders  of  voting   securities   of   Interland   approve  the
consummation  of a Business  Combination,  unless,  immediately  following  such
Business Combination, each of the following two conditions is satisfied:

                    (A) all or  substantially  all of the  Persons  who were the
          Beneficial   Owners  of  the  outstanding   Common  Stock  and  voting
          securities of Interland immediately prior to such Business Combination
          beneficially  own  directly or  indirectly,  more than 50% of both the
          then-outstanding  shares of Common Stock (or common stock equivalents)
          and the  combined  voting  power  of the  then-outstanding  securities
          entitled to vote  generally,  including in the election of  directors,
          respectively,  of the Acquiring  Corporation in substantially the same
          proportions immediately prior to such Business Combination;

                    (B) no Person  (excluding  the Acquiring  Corporation or any
          employee  benefit plan (or related  trust)  maintained or sponsored by
          Interland or by the Acquiring Corporation) beneficially owns, directly
          or  indirectly,   securities  representing  a  Control  Share  of  the
          Acquiring  Corporation  (except  to the  extent  that  such  level  of
          ownership in Interland existed prior to the Business Combination);

          (iii)  such  time as the  Continuing  Directors  do not  constitute  a
majority of the Board (or, if applicable, the Board of Directors of an Acquiring
Corporation);

          (iv) the  holders  of the voting  securities  of  Interland  approve a
complete liquidation of Interland; or

          (v) a tender offer (for which any  required  SEC filing under  Section
14(d) of the  Exchange  Act has been made) is made for the Common Stock or other
voting securities of Interland.  In the case of a tender offer described in this
paragraph  (v), a "Change in Control"  will be deemed to have  occurred upon the
first to occur of:

                    (A) any time  during the offer  when the  Person  making the
          offer either owns or has accepted for payment  securities of Interland
          representing a Control Share; or

                    (B) three  business  days  before the offer is to  terminate
          unless the offer is withdrawn  first,  if the Person  making the offer
          would own,  by the terms of the offer  plus any  shares  owned by this
          Person,  securities of Interland representing a Control Share when the
          offer terminates.

                                       11
<PAGE>

          "CODE" means the Internal Revenue Code of 1986, as amended.

          "COMMITTEE"  means the committee created and appointed by the Board to
administer this Plan, or if no committee is created and appointed, the Board.

          "COMPANY" means Interland, Inc., or any successor corporation.

          "CONTINUING  DIRECTOR" means at any date a member of the Board (i) who
was a member of the Board on the date hereof  (January 29, 2002) or (ii) who was
nominated  or elected in a formal  resolution  adopted by at least a majority of
the directors who were  Continuing  Directors at the time of such  nomination or
election provided,  however, that there shall be excluded from the definition of
Continuing  Director any individual whose assumption of the office occurred as a
result of an actual or threatened election contest or other actual or threatened
solicitation of proxies or consents,  by or on behalf of a person other than the
Board.

          "CONTROL SHARE" with regard to securities of Interland or an Acquiring
Corporation,  means  ownership  of either  (x) 50  percent  or more of the total
voting power of the then  outstanding  securities,  or (y) 50 percent or more of
the  outstanding  Common  Stock.  Percentage  ownership  shall  be  computed  in
accordance with Rule 13d-3 promulgated under the Exchange Act.

          "DISABILITY"  means a  disability,  whether  temporary  or  permanent,
partial or total, as determined by the Committee.

          "EXCHANGE  ACT" shall mean the  Securities  Exchange  Act of 1934,  as
amended.

          "EXERCISE  PRICE"  means the price at which a holder of an Option  may
purchase the Shares issuable upon exercise of the Option.

          "FAIR MARKET VALUE" means, as of any date, the value of a share of the
Company Common Stock determined as follows:

          (a)  if such  Common  Stock  is then  quoted  on the  Nasdaq  National
               Market,  its closing price on the Nasdaq  National  Market on the
               date of determination as reported in The Wall Street Journal;

          (b)  if such Common  Stock is publicly  traded and is then listed on a
               national  securities  exchange,  its closing price on the date of
               determination on the principal  national  securities  exchange on
               which the  Common  Stock is  listed or  admitted  to  trading  as
               reported in The Wall Street Journal;

          (c)  if such Common Stock is publicly  traded but is not quoted on the
               Nasdaq  National  Market nor listed or  admitted  to trading on a
               national securities exchange,  the average of the closing bid and
               asked prices on the date of determination as reported by The Wall
               Street Journal (or, if not so reported,  as otherwise reported by
               any newspaper or other source as the Board may determine); or

                                       12
<PAGE>

          (d)  if none of the foregoing is applicable,  by the Committee in good
               faith.

          "FAMILY MEMBER" includes any of the following:

          (a)  child, stepchild,  grandchild,  parent, stepparent,  grandparent,
               spouse,  former spouse,  sibling,  niece, nephew,  mother-in-law,
               father-in-law,  son-in-law,  daughter-in-law,  brother-in-law, or
               sister-in-law of the Participant,  including any such person with
               such relationship to the Participant by adoption;

          (b)  any  person  (other  than  a  tenant  or  employee)  sharing  the
               Participant's household;

          (c)  a trust in which the  persons in (a) and (b) have more than fifty
               percent of the beneficial interest;

          (d)  a  foundation  in  which  the  persons  in  (a)  and  (b)  or the
               Participant control the management of assets; or

          (e)  any  other  entity  in which  the  persons  in (a) and (b) or the
               Participant own more than fifty percent of the voting interest.

          "INSIDER"  means an officer or  director  of the  Company,  Inc.  or a
Subsidiary or any other person whose  transactions  in the Company  Common Stock
are subject to Section 16 of the Securities Exchange Act of 1934, as amended.

          "ISO" means an Incentive  Stock  Option  within the meaning of Section
422 of the Code.

          "NOTICE OF GRANT"  means,  with  respect to each  Award,  the  written
agreement  between the Company and the  Participant  setting forth the terms and
conditions of the Award.

          "NQSO" means a  nonqualified  stock option that does not qualify as an
Incentive Stock Option within the meaning of the Code.

          "OPTION"  means an award of an option to purchase  Shares  pursuant to
Section 5 hereof.

          "PARTICIPANT" means a person who receives an Award under this Plan.

          "PERSON"  shall  mean an  individual,  entity,  or group  (within  the
meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act.

          "PLAN" means this 2002 Equity  Incentive Plan, as amended from time to
time.

          "SEC" means the Securities and Exchange Commission.

          "SECURITIES ACT" means the Securities Act of 1933, as amended.

                                       13
<PAGE>

          "SHARES" means shares of the Interland,  Inc. Common Stock,  $0.01 par
value, reserved for issuance under this Plan, as adjusted pursuant to Sections 2
and 16 hereof, and any successor security.

          "SUBSIDIARY"  means any  corporation  (other than the Company),  in an
unbroken  chain  of  corporations  beginning  with  the  Company  if each of the
corporations  other than the last  corporation  in the unbroken chain owns stock
representing  fifty percent (50%) or more of the total combined  voting power of
all classes of stock in one of the other corporations in such chain.

          "TERMINATION"  or "TERMINATED"  means,  for purposes of this Plan with
respect to a  Participant,  that the  Participant  has for any reason  ceased to
provide services as an employee,  officer, director or consultant to the Company
or a  Subsidiary.  A  Participant  will not be deemed to have  ceased to provide
services in the case of (i) sick leave,  (ii) military leave, or (iii) any other
leave of absence  approved by the  Committee,  provided that such leave is for a
period  of not more than  ninety  (90) days (a)  unless  reinstatement  upon the
expiration  of such leave is  guaranteed  by contract or statute,  or (b) unless
provided  otherwise  pursuant to formal policy  adopted from time to time by the
Board and issued and  promulgated in writing.  In the case of any Participant on
(i) sick leave,  (ii) military leave or (iii) an approved leave of absence,  the
Committee may make such provisions respecting suspension of vesting of the Award
while on leave from the  Company  or a  Subsidiary  as it may deem  appropriate,
except that in no event may an Option be exercised  after the  expiration of the
term set forth in the Notice of Grant.  The Committee will have sole  discretion
to  determine  whether a  Participant  has  ceased to provide  services  and the
effective  date on  which  the  Participant  ceased  to  provide  services  (the
"TERMINATION DATE").

          "UNVESTED  SHARES" means "Unvested Shares" as defined in the Notice of
Grant.

          "VESTED  SHARES"  means  "Vested  Shares"  as defined in the Notice of
Grant.

                                       14

1449876

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00056-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00056-of-00352.parquet"}]]