Document:

<PAGE>

                           WAIVER AND AMENDMENT NO. 2

                                       TO

                           LOAN AND SECURITY AGREEMENT

     This Waiver and Amendment No. 2 to Loan and Security Agreement (this
"Amendment") is entered into as of December ___, 1999 among HAWKER PACIFIC
AEROSPACE, a California corporation ("U.S. BORROWER"), HAWKER PACIFIC AEROSPACE
LIMITED, a company organized under the laws of England and Wales ("U.K.
Borrower" and, collectively with U.S. Borrower, "BORROWERS"), the financial
institution(s) listed on the signature pages hereof and their respective
successors and Eligible Assignees (each, individually, a "Lender" and,
collectively, "LENDERS"), HELLER FINANCIAL, INC., a Delaware corporation, as a
Lender and as Agent for Lenders ("Agent"), and NMB-HELLER LIMITED, an Affiliate
of Agent domiciled in the United Kingdom, as Funding Agent and Collateral Agent
("NMB-HELLER").

                                    RECITALS;

     WHEREAS, Borrowers, Lenders, Agent and NMB-Heller are parties to a Loan and
Security Agreement dated as of December 22, 1998 (as heretofore, now, or
hereafter amended, supplemented, restated or otherwise modified, the "Loan
Agreement"); and

     WHEREAS, Borrowers, Lenders, Agent and NMB-Heller are also parties to
Waiver and Amendment No. 1 to Loan and Security Agreement dated as of October
21, 1999 (as heretofore, now, or hereafter amended, supplemented, restated or
otherwise modified, the "First Amendment");

     WHEREAS, pursuant to the First Amendment, Borrowers agreed, among other
things, that (a) on or prior to November 15, 1999, Borrowers would obtain a
Junior Investment of at least $4,000,000 and (b) within two (2) Business Days
after the date of the First Amendment, Borrowers would cause Unique to deliver a
Refund Agreement on terms and conditions satisfactory to Agent;

     WHEREAS, Borrowers have failed to comply with the covenants described in
the preceding clause and such failures constitute Events of Default under the
Loan Agreement (the "Existing Defaults"); and

     WHEREAS, Borrowers seek to obtain a preferred equity investment of
$3,000,000 on terms and conditions substantially as set forth in the form of
Convertible Preferred Stock Purchase Agreement attached hereto as Exhibit A (the
"Initial Junior Investment");

     NOW, THEREFORE, in consideration of the terms and conditions set forth
herein, and for other good and valuable consideration, the sufficiency of which
is hereby acknowledged, the parties agree as follows:

<PAGE>

     1.   DEFINITIONS. Unless otherwise defined herein, capitalized terms used
in this Amendment shall have the meanings ascribed to such terms in the Loan
Agreement and the First Amendment.

     2.   LIMITED WAIVER OF LENDERS. Lenders hereby waive the Existing Defaults.

     3.   AMENDMENTS TO LOAN AGREEMENT. The parties agree to amend the Loan
Agreement as set forth in this Section 3.

          (a)  Section 7.5 of the Loan Agreement is hereby amended by deleting
such subsection in its entirety and replacing it with the following:

          7.5  RESTRICTED JUNIOR PAYMENTS. Directly or indirectly declare,
     order, pay, make or set apart any sum for any Restricted Junior Payment,
     except that (a) Subsidiaries of any Borrower may make Restricted Junior
     Payments with respect to their common stock (or equivalent equity
     interests) to the extent necessary to permit such Borrower to pay the
     Obligations, to make Restricted Junior Payments permitted under clauses
     (b), (c), (d), (e), (f) and (g) below, and to permit such Borrower to pay
     expenses incurred in the ordinary course of business; (b) U.S. Borrower may
     pay dividends on account of its Series C Preferred Stock with shares of
     common stock; (c) U.S. Borrower pay dividends on account of its Series C
     Preferred Stock in cash up to a maximum of $25,000 in the aggregate for all
     dividends declared; (d) U.S. Borrower may pay management fees to Unique in
     the amounts and on the respective dates required pursuant to the Unique
     Management Agreement, so long as (i) such payments do not exceed an
     aggregate of $150,000 per Fiscal Year, and (ii) at the time any such
     payment is made and after giving effect thereto, no Default or Event of
     Default shall have occurred and be continuing; (e) U.S. Borrower may repay
     up to $2,500,000 in principal amount of the Subordinated Debt in full on
     the Closing Date, so long as after giving effect to such repayment and
     after giving effect to the consummation of all of the other transactions
     contemplated hereunder on the Closing Date and the payment by Borrowers of
     all costs, fees and expenses relating thereto, Borrowers shall have
     Availability (determined on a pro forma basis, with Borrowers having no
     accounts payables which are more than 60 days past due, and expenses and
     liabilities being paid in the ordinary course of business and without
     acceleration of sales) of at least $7,000,000; (f) following the Closing
     Date, U.S. Borrower may pay accrued and unpaid interest due and owing on an
     unaccelerated basis in respect to the Subordinated Debt, so long as at the
     time of any such payment and after giving effect thereto, no Default or
     Event of Default shall have occurred and be continuing and such payment is
     otherwise permitted to be made pursuant to the Subordination Agreement; and
     (g) following the Closing Date, U.S. Borrower may make annual repayments

                                       2
<PAGE>

     of the principal balance of the Subordinated Debt from a portion of its
     Excess Cash Flow, if any, for the immediately preceding Fiscal Year,
     commencing with Borrowers' 1999 Fiscal Year (i.e., assuming there is Excess
     Cash Flow available therefor, the first such principal repayment permitted
     hereunder would be made during Fiscal Year 2000) so long as (i) the
     mandatory prepayment from Excess Cash Flow payable for the most recently
     ended Fiscal Year preceding the date of such payment pursuant to SUBSECTION
     2.4(B)(3) shall have been paid prior to the making of such principal
     payment; (ii) the amount of such principal payment does not exceed 25% of
     Excess Cash Flow for the most recently ended Fiscal Year; (iii) at the time
     of such principal payment and after giving effect thereto and to the
     mandatory prepayment of the Obligations payable pursuant to SUBSECTION
     2.4(B)(3), Borrowers shall have Availability as of such date, and shall
     have had average daily excess Availability during the immediately preceding
     60 day period prior to such date (determined in each case on a pro forma
     basis as of such date or for such period, as the case may be, with
     Borrowers having no accounts payables which are more than 60 days past due,
     and expenses and liabilities being paid in the ordinary course of business
     and without acceleration of sales) of at least $3,000,000; and (iv) at the
     time of any such payment and after giving effect thereto, no Default or
     Event of Default shall have occurred and be continuing and such payment is
     otherwise permitted to be made pursuant to the Subordination Agreement.

          (b)  Section 8.15(S) of the Loan Agreement is hereby amended by
deleting such subsection in its entirety and replacing it with the following:

               (S)  CHANGE IN CONTROL OR MANAGEMENT. Any of the following
     occurs: (1) all or substantially all of the assets of any Borrower or any
     of its Subsidiaries are sold, leased or otherwise disposed of (in a single
     transaction or in a series of related transactions); (2) Deephaven Private
     Placement Trading Ltd., the Persons listed on SCHEDULE 8.15(S) hereto which
     owned equity interests in U.S. Borrower immediately prior to U.S.
     Borrower's initial public offering, or members of their immediate families
     or trusts for the benefit of members of their immediate families, fail to
     own, beneficially and of record, and control the power to vote, 35% of the
     equity securities of U.S. Borrower entitled to ordinary voting power during
     the two year period following the Closing Date, or 30% thereafter; (3) any
     person or entity or "affiliated group" (other than Deephaven Private
     Placement Trading Ltd. or existing shareholders described on SCHEDULE
     8.1(S)) acquires more than 30% of the equity securities of U.S. Borrower
     entitled to ordinary voting power; (4) less than a majority of those
     persons constituting the board of directors of U.S. Borrower as of the
     Closing Date fail to remain as members of the board of directors of U.S.
     Borrower; (5) David Lokken, Phil Panzera, Brian Carr or Michael

                                       3
<PAGE>

     Riley ceases to be actively involved on a full time basis in their current
     capacities as executive level employees of U.S. Borrower at any time and a
     replacement acceptable to Requisite Lenders is not appointed (or another
     plan for replacement which is acceptable to the Requisite Lenders is not in
     place) within 90 days; (6) Dennis Biety ceases to be actively involved on a
     full time basis in his current capacity as managing director of U.K.
     Borrower at any time during the one year period following the Closing Date
     and a replacement acceptable to Requisite Lenders is not appointed (or
     another plan for replacement which is acceptable to the Requisite Lenders
     is not in place) within 90 days; or (7) U.K. Borrower ceases to be a wholly
     owned subsidiary of U.S. Borrower.

     4.   COVENANTS. Each Borrower covenants and agrees that (i) such Borrower
shall perform, and shall cause each of its Subsidiaries to perform, all
covenants in this Section 4, and (ii) failure of any Loan Party to perform or
comply with any term or condition in this Section 4 shall constitute an
immediate Event of Default under the Loan Agreement.

          (a)  INITIAL JUNIOR INVESTMENT. Within two (2) Business Days after the
     date of this Amendment, Borrower shall have provided Agent with evidence of
     the receipt by Borrower of $3,000,000 less reasonable out-of-pocket closing
     costs from the Initial Junior Investment.

          (b)  SECOND JUNIOR INVESTMENT. On or prior to January 15, 2000,
     Borrowers shall obtain at least $1,000,000 or such greater amount not to
     exceed $3,000,000 as deemed necessary by Agent (the "SECOND JUNIOR
     INVESTMENT") from either (i) secured or unsecured loans subordinated to the
     Obligations in a manner and form satisfactory to Agent as to right and time
     of payment, lien priority and as to any other rights and remedies
     thereunder or (ii) additional equity investments in Borrowers.

     5.   CONDITIONS TO EFFECTIVENESS. This Amendment shall become effective
upon the prior or concurrent satisfaction of the following conditions, all in a
manner satisfactory to Agent:

          (a)  Agent shall have received a fully executed copy of this
     Amendment, including all Exhibits hereto.

          (b)  Agent shall have received a fully executed Refund Agreement in
     form and substance satisfactory to Agent.

          (c)  Agent shall have received a fully executed Amendment No. 1 to
     Refund Agreement in the form of Exhibit B hereto.

          (d)  Agent shall have received a Assumption Agreement in the form of
     Exhibit C hereto.

                                       4
<PAGE>

          (e)  Agent shall have received certified copies of resolutions of U.S.
     Borrower and U.K. Borrower approving the execution, delivery and
     performance of this Amendment and the transactions contemplated hereby.

          (f)  Agent shall have received a fully executed copies of all
     documents, agreements and instruments executed in connection with the
     Initial Junior Investment.

     6.   REPRESENTATIONS AND WARRANTIES OF BORROWERS. Each Borrower represents
and warrants to Agent and Lenders that:

     6.1  AUTHORITY. Each Borrower has full power, authority and legal right to
enter into this Amendment and the other agreements entered into in connection
herewith to which such Borrower is a party. The execution and delivery by each
Borrower of this Amendment and the other agreements entered into in connection
herewith to which such Borrower is a party: (i) have been duly authorized by all
necessary action on the party of such Borrower; (ii) are not in contravention of
the terms of such Borrower's organizational documents or of any indenture,
agreement or undertaking to which such Borrower is a party or by which such
Borrower or any of its property is bound; (iii) do not and will not require any
governmental consent, registration or approval; (iv) do not and will not
contravene any contractual or governmental restriction of which such Borrower or
any of its property may be subject; and (v) do not and will not, except as
contemplated herein, result in the imposition of any lien, charge, security
interest or encumbrance upon any property of such Borrower under any existing
indenture, mortgage, deed of trust, loan or credit agreement or other material
agreement or instrument to which such Borrower is a party or by which such
person or any of its property may be bound or affected.

     6.2  BINDING EFFECT. This Amendment and all of the other agreements entered
into by each Borrower in connection herewith have been duly executed and
delivered by such Borrower, are the legal, valid and binding obligations of such
Borrower and are enforceable against such in accordance with their respective
terms.

     6.3  NO DEFAULT. No Default or Event of Default has occurred and is
continuing or would result from the execution and delivery of this Amendment or
the other agreements executed and delivered by either Borrower hereunder or the
consummation of the transactions contemplated hereby or thereby.

     7.   REFERENCE TO AND EFFECT UPON THE LOAN DOCUMENTS.

     7.1  Except as specifically amended above, the Loan Agreement, as amended,
and each of the Loan Documents shall remain in full force and effect and is
hereby ratified and confirmed.

     7.2  The execution, delivery and effectiveness of this Amendment shall be
limited precisely as written and shall not be deemed to (i) be a consent to any
waiver or modification of any other term or condition of the Loan Agreement or
any other Loan Document or (ii) prejudice any right, power or remedy which
Lender may now have or may have in the

                                       5
<PAGE>

future under or in connection with the Loan Agreement (after giving effect to
this Amendment) or any other Loan Document. Upon the effectiveness of this
Amendment, each reference in the Loan Agreement to "this Agreement",
"hereunder", "hereof", "herein" or words of similar import shall mean and be a
reference to the Loan Agreement as amended hereby.

     8.   COUNTERPARTS; FACSIMILE SIGNATURES. This Amendment may be executed in
any number of counterparts, each of which when so executed shall be deemed an
original, but all such counterparts shall constitute one and the same
instrument. Transmission by facsimile of an executed counterpart of this
Amendment shall be deemed to constitute due and sufficient delivery of such
counterpart and an original for all purposes.

     9.   COSTS, EXPENSES AND TAXES. Borrowers jointly and severally agree to
pay on demand all reasonable fees, costs and expenses incurred by Agent, Lenders
and NMB-Heller in connection with the preparation, execution and delivery of
this Amendment (including, without limitation, attorney's fees and expenses).

     10.  GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS AND DECISIONS (AS OPPOSED TO CONFLICT OF LAWS
PROVISIONS) OF THE STATE OF ILLINOIS.

     11.  HEADINGS. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment
for any other purposes.

                                       6
<PAGE>

     IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and
year first above written.

                           HAWKER PACIFIC AEROSPACE, as Borrower
                           and as Borrower Representative

                           By: /s/ Philip M. Panzera
                              --------------------------------------------
                           Name: Philip M. Panzera
                                ------------------------------------------
                           Title: Executive Vice President
                                 -----------------------------------------

                           HAWKER PACIFIC AEROSPACE LIMITED, as a Borrower

                           By: /s/ Philip M. Panzera
                              --------------------------------------------
                           Name: Philip M. Panzera
                                ------------------------------------------
                           Title: Director
                                 -----------------------------------------

                           HELLER FINANCIAL, INC., as Agent and as a Lender

                           By: /s/ Renee M. Rempe
                              --------------------------------------------
                           Name: Renee M. Rempe
                                ------------------------------------------
                           Title: Vice President
                                 -----------------------------------------

                           NMB-HELLER LIMITED, in its capacity as
                           Funding Agent and Collateral Agent

                           By: /s/ J.P. Onslow
                              --------------------------------------------
                           Name: J.P. Onslow
                                ------------------------------------------
                           Title: Director
                                 -----------------------------------------

                                       7<PAGE>

                                                                  Exhibit 10.40

                                      LEASE

                                      FROM:

                      CALI AIRPORT REALTY ASSOCIATES, L.P.

                                     LESSOR

                                       TO:

                            BLUESTONE SOFTWARE, INC.

                                     LESSEE

                                    BUILDING:

                             AIRPORT BUSINESS CENTER
                                300 STEVENS DRIVE
                              LESTER, PENNSYLVANIA

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>      <C>                                                        <C>
1.       DESCRIPTION                                                 3

2.       TERM                                                        3

3.       BASIC RENT                                                  4

4.       USE AND OCCUPANCY                                           4

5.       CARE AND REPAIR OF PREMISES                                 4

6.       ALTERATIONS, ADDITIONS OR IMPROVEMENTS                      5

7.       ACTIVITIES INCREASING FIRE INSURANCE RATES                  7

8.       ASSIGNMENT AND SUBLEASE                                     7

9.       COMPLIANCE WITH RULES AND REGULATIONS                      10

10.      DAMAGES TO BUILDING/WAIVER OF SUBROGATION                  10

11.      EMINENT DOMAIN                                             11

12.      INSOLVENCY OF LESSEE                                       11

13.      LESSEE'S DEFAULT                                           11

14.      LESSOR'S REMEDIES ON DEFAULT                               11

15.      SUBORDINATION OF LEASE                                     15

16.      SECURITY DEPOSIT                                           15

17.      RIGHT TO CURE LESSEE'S BREACH                              17

18.      MECHANIC'S LIENS                                           17

19.      RIGHT TO INSPECT AND REPAIR                                17

20.      SERVICES TO BE PROVIDED BY LESSOR/LESSOR'S EXCULPATION     17

21.      INTERRUPTION OF SERVICES OR USE                            18

22.      BUILDING STANDARD OFFICE ELECTRICAL SERVICE                18

23.      ADDITIONAL RENT                                            20

24.      LESSEE'S ESTOPPEL                                          23

25.      HOLDOVER TENANCY                                           23

26.      RIGHT TO SHOW PREMISES                                     23

27.      LESSOR'S WORK - LESSEE'S DRAWINGS                          23

28.      WAIVER OF TRIAL BY JURY                                    23

29.      LATE CHARGE                                                24

30.      LESSEE'S INSURANCE                                         24
</TABLE>

<PAGE>

<TABLE>
<S>      <C>                                                        <C>
31.      NO OTHER REPRESENTATIONS                                   26

32.      QUIET ENJOYMENT                                            26

33.      INDEMNITY                                                  26

34.      PARAGRAPH HEADINGS                                         26

35.      APPLICABILITY TO HEIRS AND ASSIGNS                         26

36.      OUTSIDE PARKING SPACES                                     26

37.      LESSOR'S LIABILITY FOR LOSS OF PROPERTY                    26

38.      PARTIAL INVALIDITY                                         27

39.      LESSEE'S BROKER                                            27

40.      PERSONAL LIABILITY                                         27

41.      NO OPTION                                                  27

42.      DEFINITIONS                                                27

43.      LEASE COMMENCEMENT                                         28

44.      NOTICES                                                    28

45.      ACCORD AND SATISFACTION                                    29

46.      EFFECT OF WAIVERS                                          29

47.      LEASE CONDITION                                            29

48.      MORTGAGEE'S NOTICE AND OPPORTUNITY TO CURE                 29

49.      LESSOR'S RESERVED RIGHT                                    29

50.      CORPORATE AUTHORITY                                        29

51.      INTENTIONALLY OMITTED                                      29

52.      LESSEE'S RELOCATION                                        29

53.      BUILDING PERMIT                                            30

54.      INTENTIONALLY OMITTED                                      30

55.      USE AND OCCUPANCY TAX AND MISCELLANEOUS TAXES              30

56.      APPRAISAL, FAIR MARKET VALUE                               31

57.      RIGHT OF FIRST OFFER                                       31

58.      ARBITRATION                                                32

</TABLE>

<PAGE>

         THIS LEASE is made the 29 day of October, 1999, between CALI AIRPORT
REALTY ASSOCIATES, L.P. ("Lessor") whose address is c/o Mack-Cali Realty
Corporation, 11 Commerce Drive, Cranford, New Jersey 07016 and BLUESTONE
SOFTWARE, INC. ("Lessee") whose address is 100 Briggs Road, Mt. Laurel, New
Jersey 08054.

                                    PREAMBLE

                     BASIC LEASE PROVISIONS AND DEFINITIONS

In addition to other terms elsewhere defined in this Lease, the following terms
whenever used in this Lease shall have only the meanings set forth in this
section, unless such meanings are expressly modified, limited or expanded
elsewhere herein.

1.       ADDITIONAL RENT shall mean all sums in addition to Fixed Basic Rent
         payable by Lessee to Lessor pursuant to the provisions of the Lease.

2.       BASE PERIOD COSTS shall mean the following:

         A.   Base Operating Costs: Those Operating Costs incurred during
              Calendar Year 1999.

         B.   Base Real Estate Taxes: Those Real Estate Taxes incurred during
              Calendar Year 1999.

         C.   Base Utility and Energy Costs: 0. See Section 22.a.

3.       BUILDING shall mean 300 Stevens Drive.

4.       BUILDING HOLIDAYS shall be those shown on Exhibit E.

5.       BUILDING HOURS shall be Monday through Friday, 8:00 a.m. to 6:00 p.m.,
         and on Saturdays from 8:00 a.m. to 1:00 p.m., but excluding those
         holidays as set forth on Exhibit E attached hereto and made a part
         hereof, except that Common Facilities, lighting in the Building and
         Office Building Area shall be maintained for such additional hours as,
         in Lessor's sole judgement, is necessary or desirable to insure proper
         operating of the Building and Office Building Area.

6.       COMMENCEMENT DATE is January 1, 2000, and shall for purposes hereof be
         subject to Articles 27 and 43 hereof.

7.       CONSTRUCTION ALLOWANCE shall mean Four Hundred Seventy-Nine Thousand
         One Hundred Forty Dollars ($479,140) which amount is the product of
         Twenty Dollars ($20) multiplied by the gross rentable square feet in
         the Premises, which is stipulated by the parties to be 23,957 gross
         rentable square feet.

8.       DEMISED PREMISES OR PREMISES shall from the Commencement Date through
         midnight on May 31, 2000, be deemed to be 15,000 gross rentable square
         feet on the 3rd floor of the Building identified and shown as Phase 1
         on Exhibit A-1 hereto (such space is sometimes hereinafter referred to
         as the "Phase 1 Space"). From 12:01 a.m. on June 1, 2000, through the
         end of the Term, "Demised Premises" or "Premises" shall mean the Phase
         1 Space plus 8,957 gross rentable square feet on the 3rd floor of the
         Building identified and shown as Phase 2 on Exhibit A-1 hereto (such
         space is sometimes hereinafter referred to as the "Phase 2 Space"). The
         combined gross rentable square feet of the Phase 1 Space and the Phase
         2 Space is 23,957, all more fully shown on Exhibit A hereto. The
         Demised Premises or Premises includes an allocable share of the Common
         Facilities as defined in Article 42(b).

9.       EXHIBITS shall be the following, attached to this Lease and
         incorporated herein and made a part hereof.

                   Exhibit A            Location of Premises
                   Exhibit A-1          Phase 1 Space and Phase 2 Space
                   Exhibit A-2          Office Building Area

<PAGE>

                   Exhibit B            Rules and Regulations
                   Exhibit C            Lessor's Work
                   Exhibit C-1          Air Conditioning &
                                        Heating Design Standards
                   Exhibit D            Cleaning Services
                   Exhibit E            Building Holidays
                   Exhibit F            Tenant Estoppel Certificate
                   Exhibit G            Commencement Date Agreement
                   Exhibit H            Form of Letter of Credit
                   Schedule 1           Rent Schedule

10.      EXPIRATION DATE shall be the last day of the month that is the
         ninetieth (90th) month after the month in which the Commencement Date
         occurs.

11.      FIXED BASIC RENT shall mean: FOUR MILLION FIVE HUNDRED SIXTEEN THOUSAND
         ONE HUNDRED SIXTY-THREE DOLLARS AND TWENTY-FIVE CENTS ($4,516,163.25)
         for the Term payable as shown on Schedule 1 hereto.

12.      LESSEE'S BROKER shall mean Insignia/ESG Jackson-Cross Company.

13.      LESSEE'S PERCENTAGE shall be (i) from the Commencement Date through May
         31, 2000, 22.06%; and (ii) from 12:01 on June 1, 2000 through the end
         of the Term, 35.23%, subject to adjustment as provided for in Article
         42(d).

14.      OFFICE BUILDING AREA is as set forth on Exhibit A-2.

15.      PARKING SPACES shall mean a total of ninety-eight (98) spaces as
         follows:

                   Assigned:            N/A

                   Unassigned:          Ninety-eight (98)

                   Garage:              N/A

16.      PERMITTED USE shall be general office use and for no other purpose.

17.      SECURITY DEPOSIT shall be as defined in Article 16.

18.      TERM shall mean seven (7) years and six (6) months from the
         Commencement Date, plus the number of days to have the lease expire on
         the last day of a calendar month, unless extended pursuant to any
         option contained herein.

                                        2

<PAGE>

                               W I T N E S S E T H

              For and in consideration of the covenants herein contained, and
upon the terms and conditions herein set forth, Lessor and Lessee agree as
follows:

1.       DESCRIPTION: Lessor hereby leases to Lessee, and Lessee hereby hires
         from Lessor, the Premises as defined in the Preamble which includes an
         allocable share of the Common Facilities, as shown on the plan or
         plans, initialed by the parties hereto, marked Exhibit A attached
         hereto and made part of this Lease in the Building as defined in the
         Preamble, (hereinafter called the "Building") which is situated on that
         certain parcel of land (hereinafter called "Office Building Area") as
         described on Exhibit A-2 attached hereto and made part of this Lease,
         together, with the right to use in common with other lessees of the
         Building, their invitees, customers and employees, those public areas
         of the Common Facilities as hereinafter defined.

2.       TERM:

         a.   The Phase 1 Space is leased for a term to commence on the
              Commencement Date, and to end at 12:00 midnight on the Expiration
              Date, all as defined in the Preamble. The Phase 2 Space is leased
              for a term to commence on June 1, 2000 (the "Phase 2 Commencement
              Date"), and to end at 12:00 midnight on the Expiration Date, all
              as defined in the Preamble. Lessee agrees not to occupy the Phase
              2 Space until the Phase 2 Commencement Date. On the Phase 2
              Commencement Date the Phase 2 Space shall become part of the
              Demised Premises and the rights, duties and obligations of the
              parties with respect to the Phase 2 Space shall be governed by the
              terms of this Lease, without the need for any further instrument
              or action by the parties. Lessee acknowledges that it is obligated
              by this Lease to take and let from Lessor the Phase 1 Space and
              the Phase 2 Space.

         b.   Provided Lessee is not in default under this Lease (after any
              applicable notice and lapse of applicable cure periods) and
              provided that Lessee has not subleased more than twenty-five
              percent (25%) of the Demised Premises or assigned this Lease, as
              of the date of exercise or the commencement of the renewal term
              ("Renewal Term Commencement Date"), Lessee shall have the option
              to renew this Lease ("Renewal Option") for the entire Demised
              Premises not previously subleased by Lessee for one period of five
              (5) years ("Renewal Term"), exercisable by giving written notice
              ("Renewal Notice") to Lessor of its exercise of the Renewal Option
              at least twelve (12) months prior to the Expiration Date. Upon
              receiving the Renewal Notice, Lessor shall determine the Fair
              Market Rental Rate (as defined in Article 56) for the Premises as
              of the Renewal Term Commencement Date in accordance with Section
              2.c and shall notify Lessee of such Fair Market Rental Rate at
              least nine (9) months prior to the expiration of the initial Term
              of this Lease. The Renewal Option is and shall be limited to those
              portions of the Demised Premises physically occupied by Lessee and
              shall not cover, extend to or be applicable with respect to any
              portion of the Demised Premises subleased by Lessee at either the
              date of the Renewal Notice or on the Renewal Term Commencement
              Date (the "Excluded Space"). Notwithstanding any exercise of the
              Renewal Option by Lessee, the Term of this Lease with respect to
              the Excluded Space shall end and terminate on the Expiration Date.

         c.   The initial annual Fixed Basic Rent payable hereunder for the
              Premises during the Renewal Term shall be the Fair Market Rental
              Rate (as defined in SECTION 56.A) as of the Renewal Term
              Commencement Date. The Fair Market Rental Rate shall be initially
              reasonably determined by Lessor in accordance with the standards
              set forth in Article 56.

         d.   The Fixed Basic Rent during the Renewal Term shall be adjusted
              annually by fifty cents ($.50) per rentable square feet of space
              then comprising the Demised Premises.

         e.   The Renewal Option set forth in this Article 2 is personal to
              Tenant and may not be assigned, transferred or conveyed to any
              party without the prior written consent of

                                        3

<PAGE>

              Lessor.

         f.   Notwithstanding the grant of the Renewal Option set forth in this
              Article 2, Lessor shall have the right and option following
              receipt of a Renewal Notice to relocate Lessee and change the
              location of the Premises in accordance with the provisions of
              Article 52 ("Relocation Option"), or, if in Lessor's sole judgment
              alternative space within the Airport Business Center is not
              available for such relocation, to revoke, rescind and terminate
              the Renewal Option and any exercise thereof by Lessee ("Revocation
              Option"), exercisable by giving written notice ("Lessor's Notice")
              to Lessee of its exercise of the Relocation Option or the
              Revocation Option, as the case may be, at least eleven (11) months
              prior to the Expiration Date. In the event Lessor exercises its
              Relocation Option, Lessee may elect to reject the proposed
              Substituted Leased Premises by giving written notice to Lessor of
              such rejection within fifteen (15) days after Lessee's receipt of
              Lessor's Notice ("Lessee's Rejection Notice"). In the event Lessor
              exercises its Revocation Option, or if Lessee timely provides to
              Lessor a Lessee's Rejection Notice, then Lessor shall pay to
              Lessee, within sixty (60) days after the issuance by Lessor to
              Lessee of the Revocation Notice a fee in the amount of One Hundred
              Fifty Thousand Dollars ($150,000).

3.       BASIC RENT: The Lessee shall pay to the Lessor during the Term, the
         Fixed Basic Rent as defined in the Preamble (hereinafter called "Fixed
         Basic Rent") payable in such coin or currency of the United States of
         America as at the time of payment shall be legal tender for the payment
         of public and private debts. The Fixed Basic Rent shall accrue at the
         Yearly Rate as shown on Schedule 1 and shall be payable, in advance, on
         the first day of each calendar month during the Term at the Monthly
         Installments as shown on Schedule 1, except that a proportionately
         lesser sum may be paid for the first and last months of the Term of
         this Lease if the Term commences on a day other than the first day of
         the month, in accordance with the provisions of this Lease herein set
         forth. Lessor acknowledges receipt from Lessee of the first monthly
         installment by check, subject to collection, for Fixed Basic Rent for
         the first month of the Lease Term. Lessee shall pay Fixed Basic Rent,
         and any Additional Rent as hereinafter provided, to Lessor at Lessor's
         above stated address, or at such other place as Lessor may designate in
         writing, without demand and without counterclaim, deduction or set off.

4.       USE AND OCCUPANCY: Lessee shall use and occupy the Premises for the
         Permitted Use as defined in the Preamble.

         If at any time during the Term of this Lease, Lessee adopts a policy
         prohibiting Lessee, its employees, agents or invitees from smoking
         within the Premises, Lessee shall establish a designated area with in
         the Premises where Lessee shall permit smoking. Lessee shall establish
         such designated area at Lessee's sole expense in accordance with
         Article 6 of this Lease. Such designated area shall include, among
         other things, adequate area, ventilation and fire safety equipment.
         Lessee hereby acknowledges that such designated area is necessary and
         reasonable to prevent smoking by Lessee, Lessee's employees, agents and
         invitees in unauthorized areas of the Building or Common Facilities in
         violation of relevant fire and safety laws and regulations and to
         prevent fire hazards within the Premises.

5.       CARE AND REPAIR OF PREMISES: Lessee shall commit no act of waste and
         shall take good care of the Premises and the fixtures and appurtenances
         therein, and shall, in the use and occupancy of the Premises, conform
         to all laws, orders and regulations of the federal, state and municipal
         governments or any of their departments affecting the Premises and with
         any and all environmental requirements resulting from the Lessee's use
         of the Premises, this covenant to survive the expiration or sooner
         termination of the Lease. Lessor shall, subject to the same being
         included in Operating Costs, make all necessary repairs to the
         Premises, Common Facilities and to the assigned parking areas, if any,
         except where the repair has been made necessary by misuse or neglect by
         Lessee or Lessee's agents, servants, visitors or licensees, in which
         event Lessor shall nevertheless make the repair but Lessee shall pay to
         Lessor, as Additional Rent, immediately upon demand, the costs
         therefor. All improvements made by Lessee to the Premises, which are so
         attached to the Premises, shall become the property of Lessor upon
         installation. Not later than the last day of the Term, Lessee shall, at
         Lessee's expense, remove all Lessee's personal property and those
         improvements made by

                                        4

<PAGE>

         Lessee which have not become the property of Lessor, including trade
         fixtures, cabinetwork, movable paneling, partitions and the like;
         repair all injury done by or in connection with the installation or
         removal of said property and improvements; and surrender the Premises
         in as same condition as they were at the beginning of the Term,
         reasonable wear and damage by fire, the elements, casualty or other
         cause not due to the misuse or neglect by Lessee, Lessee's agents,
         servants, visitors or licensees excepted. All other property of Lessee
         remaining on the Premises after the last day of the Term of this Lease
         shall be conclusively deemed abandoned and may be removed by Lessor,
         and Lessee shall reimburse Lessor for the cost of such removal. Lessor
         may have any such property stored at Lessee's risk and expense.

         Lessee shall not generate, handle, dispose, bring, store or discharge
         or permit the generation, handling, disposal, bringing, storage or
         discharge of any hazardous substances or wastes (collectively,
         "Hazardous Materials") in, upon or about the Premises, the Building or
         the Office Building Area in violation of any laws and/or requirements
         of public authorities (hereinafter collectively referred to as
         "Prohibited Actions"). Lessee shall indemnify and hold Lessor harmless
         against any and all loss, cost, damage, liability or expense (including
         without limitation, attorney's fees, and disbursements) which Lessor
         may sustain or incur as a result of any Prohibited Actions. Lessee
         shall have no liability with respect to any Prohibited Action that
         occurred, or the presence of any Hazardous Materials in the Premises,
         Building or Office Building Area which existed, prior to the
         Commencement Date, unless caused by the acts or omissions of Lessee,
         its employees, agents or contractors.

6.       ALTERATIONS, ADDITIONS OR IMPROVEMENTS:

         a.   Lessee shall not, without first obtaining the written consent of
              Lessor, make any alterations, additions or improvements in, to or
              about the Premises.

         b.   Provided that the proposed alteration, addition or improvement
              does not in Landlord's judgment involve any modification to the
              Building's exterior or its structural, mechanical, HVAC,
              electrical, or plumbing systems or components, or require the
              issuance of a building permit by Tinicum Township under its
              applicable codes, rules and ordinances such approval shall not be
              unreasonably withheld or delayed, but may be conditioned upon
              compliance with reasonable requirements of Lessor, including
              without limitation, the filing of mechanics' lien waivers by
              Lessee's contractors and the submission of written evidence of
              adequate insurance coverage naming Lessor as an additional insured
              thereunder, and the removal of such from, and the restoration of,
              the Demised Premises at the end of the Term.

         c.   Lessor may withhold its approval in its absolute and sole
              discretion with respect to each such alteration, addition or
              improvement which Lessor determines involved any modification to
              the Building's exterior or its structural, electrical, mechanical,
              HVAC or plumbing systems or any components thereof.

         d.   Lessee shall not permit any lien to be filed against the Premises
              or the Building, or the Building Area or Lessor's interest therein
              or permit any financing statement or statements to be filed with
              respect to any of the foregoing alterations, additions or
              improvements made by Lessee and all fixtures attached to the
              Premises (other than Lessor's trade and business fixtures and
              equipment) shall, unless Lessor gives Lessee notice to remove
              them, remain at the Premises at the expiration or sooner
              termination of this Lease and become the property of Lessor
              without payment therefor or, at Lessor's option, after notice to
              Lessee, any or all of the foregoing which may be designated by
              Lessor in such removal notice shall be removed at the sole cost of
              Lessee, before such expiration or sooner termination and in such
              event, Lessee shall repair all damage to the Premises caused by
              the installation or removal thereof, and shall restore the
              Premises to its original improved condition (ordinary wear and
              tear excepted), on or before the expiration or termination of this
              Lease. Should Lessee fail to remove the same or restore the
              Premises, Lessor may cause same to be removed and/or the Premises
              to be restored at Lessee's expense, and Lessee hereby agrees to
              pay for Lessor the actual cost of such removal and/or restoration,
              together with any and all damages which Lessor may suffer and
              sustain by reason of the

                                       5

<PAGE>

              failure of Lessee to remove the same and/or restore the Premises
              as herein provided.

         e.   All such alterations, additions or improvements shall be performed
              at Lessee's cost by Lessor or one or more contractors reasonably
              approved by Lessor and Lessee, and shall be subject to all
              applicable requirements of Exhibit C hereof.

                                       6

<PAGE>
7.       ACTIVITIES INCREASING FIRE INSURANCE RATES: Lessee shall not do or
         suffer anything to be done on the Premises which will increase the rate
         of fire insurance on the Building.

8.       ASSIGNMENT AND SUBLEASE: Provided Lessee is not in default of any
         provisions of this Lease, Lessee may assign or sublease the within
         Lease to any party subject to the following:

         a.   In the event Lessee desires to assign this Lease or sublease all
              or part of the Premises to any other party, the terms and
              conditions of such assignment or sublease shall be communicated to
              the Lessor in writing prior to the effective date of any such
              sublease or assignment, and, prior to such effective date, the
              Lessor shall have the option, exercisable in writing to the
              Lessee, to: (i) sublease such space from Lessee at the lower rate
              of (a) the rental rate per rentable square foot of Fixed Basic
              Rent and Additional Rent then payable pursuant to this Lease or
              (b) the terms set forth in the proposed sublease, (ii) recapture
              in the case of subletting, that portion of the Premises to be
              sublet or all of the Premises in the case of an assignment
              ("Recapture Space") so that such prospective sublessee or assignee
              shall then become the sole lessee of Lessor hereunder, or (iii)
              recapture the Recapture Space for Lessor's own use and the within
              Lessee shall be fully released from any and all obligations
              hereunder with respect to the Recapture Space.

         b.   In the event that the Lessor elects not to recapture the Lease as
              hereinabove provided, the Lessee may nevertheless assign this
              Lease or sublet the whole or any portion of the Premises, subject
              to the Lessor's prior written consent, which consent shall not be
              unreasonably withheld, on the basis of the following terms and
              conditions:

              i.        The Lessee shall provide to the Lessor the name and
                        address of the assignee or sublessee.

              ii.       The assignee or sublessee shall assume, by written
                        instrument, all of the obligations of this Lease, and a
                        copy of such assumption agreement shall be furnished to
                        the Lessor within ten (10) days of its execution. Any
                        sublease shall expressly acknowledge that said
                        sublessee's rights against Lessor shall be no greater
                        than those of Lessee. Lessee further agrees that
                        notwithstanding any such subletting, no other and
                        further subletting of the Premises by Lessee or any
                        person claiming through or under Lessee shall or will be
                        made except upon compliance with and subject to the
                        provisions of this Article 8.

              iii.      Each sublease shall provide that it is subject and
                        subordinate to this Lease and to the matters to which
                        this Lease is or shall be subordinate, and that in the
                        event of default by Lessee under this Lease, Lessor may,
                        at its option, take over all of the right, title and
                        interest of Lessee, as sublessor, under such sublease,
                        and such sublessee shall, at Lessor's option, attorn to
                        Lessor pursuant to the then executory provisions of such
                        sublease, except that Lessor shall not (i) be liable for
                        any previous act or omission of Lessee under such
                        sublease or, (ii) be subject to any offset not expressly
                        provided in such sublease which theretofore accrued to
                        such sublease to which Lessor has not specifically
                        consented in writing or by any previous prepayment of
                        more than one month's rent.

              iv.       The Lessee and each assignee shall be and remain liable
                        for the observance of all the covenants and provisions
                        of this Lease, including, but not limited to, the
                        payment of Fixed Basic Rent and Additional Rent reserved
                        herein, through the entire Term of this Lease, as the
                        same may be renewed, extended or otherwise modified.

              v.        The Lessee and any assignee shall promptly pay to Lessor
                        any consideration received for any assignment and/or all
                        of the rent, as and when received, in excess of the Rent
                        required to be paid by Lessee for the area sublet
                        computed on the basis of an average square foot rent for
                        the gross square footage Lessee has leased.

                                        7

<PAGE>

              vi.       In any event, the acceptance by the Lessor of any rent
                        from the assignee or from any of the subtenants or the
                        failure of the Lessor to insist upon a strict
                        performance of any of the terms, conditions and
                        covenants herein shall not release the Lessee herein,
                        nor any assignee assuming this Lease, from any and all
                        of the obligations herein during and for the entire Term
                        of this Lease.

              vii.      Lessor shall require a FIVE HUNDRED AND 00/100 DOLLAR
                        ($500.00) payment to cover its handling charges for each
                        request for consent to any sublet or assignment prior to
                        its consideration of the same. Lessee acknowledges that
                        its sole remedy with respect to any assertion that
                        Lessor's failure to consent to any sublet or assignment
                        is unreasonable shall be the remedy of specific
                        performance and Lessee shall have no other claim or
                        cause of action against Lessor as a result of Lessor's
                        actions in refusing to consent thereto.

         c.   If Lessee is a corporation other than a corporation whose stock is
              listed and traded on a nationally recognized stock exchange, the
              provisions of Subsection 8a. shall apply to a transfer (however
              accomplished, whether in a single transaction or in a series of
              related or unrelated transactions) of stock (or any other
              mechanism such as, by way of example, the issuance of additional
              stock, a stock voting agreement or change in class(es) of stock)
              which results in a change of control of Lessee as if such transfer
              of stock (or other mechanism) which results in a change of control
              of Lessee were an assignment of this Lease, and if Lessee is a
              partnership or joint venture, said provisions shall apply with
              respect to a transfer (by one or more transfers) of an interest in
              the distributions of profits and losses of such partnership or
              joint venture (or other mechanism, such as, by way of example, the
              creation of additional general partnership or limited partnership
              interests) which results in a change of control of such a
              partnership or joint venture, as if such transfer of an interest
              in the distributions of profits and losses of such partnership or
              joint venture which results in a change of control of such
              partnership or joint venture were an assignment of this Lease; but
              said provisions shall not apply to transactions with a corporation
              into or with which Lessee is merged or consolidated or to which
              all or substantially all of Lessee's assets are transferred or to
              any corporation which controls or is controlled by Lessee or is
              under common control with Lessee, provided that in the event of
              such merger, consolidation or transfer of all or substantially all
              of Lessee's assets (i) the successor to Lessee has a net worth
              computed in accordance with generally accepted accounting
              principles at least equal to the greater of (1) the net worth of
              Lessee immediately prior to such merger, consolidation or
              transfer, or (2) the net worth of Lessee herein named on the date
              of this Lease, and (ii) proof satisfactory to Lessor of such net
              worth shall have been delivered to Lessor at least 10 days prior
              to the effective date of any such transaction.

         d.   In the event that any or all of Lessee's interest in the Premises
              and/or this Lease is transferred by operation of law to any
              trustee, receiver, or other representative or agent of Lessee, or
              to Lessee as a debtor in possession, and subsequently any or all
              of Lessee's interest in the Premises and/or this Lease is offered
              or to be offered by Lessee or any trustee, receiver, or other
              representative or agent of Lessee as to its estate or property
              (such person, firm or entity being hereinafter referred to as the
              "Grantor", for assignment, conveyance, lease, or other disposition
              to a person, firm or entity other than Lessor (each such
              transaction being hereinafter referred to as a "Disposition"), it
              is agreed that Lessor has and shall have a right of first refusal
              to purchase, take, or otherwise acquire, the same upon the same
              terms and conditions as the Grantor thereof shall accept upon such
              Disposition to such other person, firm, or entity; and as to each
              such Disposition the Grantor shall give written notice to Lessor
              in reasonable detail of all of the terms and conditions of such
              Disposition within twenty (20) days next following its
              determination to accept the same but prior to accepting the same,
              and Grantor shall not make the Disposition until and unless Lessor
              has failed or refused to accept such right of first refusal as to
              the Disposition, as set forth herein.

              Lessor shall have sixty (60) days next following its receipt of
              the written notice as to such Disposition in which to exercise the
              option to acquire Lessee's interest by

                                       9

<PAGE>

              such Disposition, and the exercise of the option by Lessor shall
              be effected by notice to that effect sent to the Grantor; but
              nothing herein shall require Lessor to accept a particular
              Disposition or any Disposition, nor does the rejection of any one
              such offer of first refusal constitute a waiver or release of the
              obligation of the Grantor to submit other offers hereunder to
              Lessor. In the event Lessor accept such offer of first refusal,
              the transaction shall be consummated pursuant to the terms and
              conditions of the Disposition described in the notice to Lessor.
              In the event Lessor rejects such offer of first refusal, Grantor
              may consummate the Disposition with such other person, firm, or
              entity; but any decrease in price of more than two percent (2%) of
              the price sought from Lessor or any change in the terms of payment
              for such Disposition shall constitute a new transaction requiring
              a further option of first refusal to be given to Lessor hereunder.

         e.   Without limiting any of the provisions of Articles 12 and 13, if
              pursuant to the Federal Bankruptcy Code (herein referred to as the
              "Code"), or any similar law hereafter enacted having the same
              general purpose, Lessee is permitted to assign this Lease
              notwithstanding the restrictions contained in this Lease, adequate
              assurance of future performance by an assignee expressly permitted
              under such Code shall be deemed to mean the deposit of cash
              security in an amount equal to the sum of one year's Fixed Basic
              Rent plus an amount equal to the Additional Rent for the calendar
              year preceding the year in which such assignment is intended to
              become effective, which deposit shall be held by Lessor for the
              balance of the Term, without interest, as security for the full
              performance of all of Lessee's obligations under this Lease, to be
              held and applied in the manner specified for security in Article
              16.

         f.   Except as specifically set forth above, no portion of the Premises
              or of Lessee's interest in this Lease may be acquired by any other
              person or entity, whether by assignment, mortgage, sublease,
              transfer, operation of law or act of the Lessee, nor shall Lessee
              pledge its interest in this Lease or in any security deposit
              required hereunder.

9.       COMPLIANCE WITH RULES AND REGULATIONS: Lessee shall observe and comply
         with the rules and regulations hereinafter set forth in Exhibit B
         attached hereto and made a part hereof and with such further reasonable
         rules and regulations of general applicability to all tenants in the
         Building as Lessor may prescribe, on written notice to the Lessee, for
         the safety, care and cleanliness of the Building and the comfort, quiet
         and convenience of other occupants of the Building. Lessee shall not
         place a load upon any floor of the Premises exceeding the floor load
         per square foot area which it was designed to carry and which is
         allowed by law. Lessor reserves the right to prescribe the weight and
         position of all safes, business machines and mechanical equipment. Such
         installations shall be placed and maintained by Lessee, at Lessee's
         expense, in settings sufficient, in Lessor's judgement, to absorb and
         prevent vibration, noise and annoyance.

10.      DAMAGES TO BUILDING: If the Building is damaged by fire or any other
         cause to such extent the cost of restoration, as reasonably estimated
         by Lessor, will equal or exceed thirty- five percent (35%) of the
         replacement value of the Building (exclusive of foundations) just prior
         to the occurrence of the damage, then Lessor may, no later than the
         sixtieth (60th) day following the date of damage, give Lessee a notice
         of election to terminate this Lease, or if the cost of restoration will
         equal or exceed fifty percent (50%) of such replacement value and if
         the Premises shall not be reasonably usable for the purpose for which
         they are leased hereunder, then Lessee may, no later than the sixtieth
         (60th) day following the date of damage, give Lessor a notice of
         election to terminate this Lease. In either said event of election,
         this Lease shall be deemed to terminate on the thirtieth (30th) day
         after the giving of said notice, and Lessee shall surrender possession
         of the Premises within a reasonable time thereafter, and the Fixed
         Basic Rent, and any Additional Rent, shall be apportioned as of the
         date of said damage and any Fixed Basic Rent or Additional Rent paid
         for any period beyond said date shall be repaid to Lessee. If the cost
         of restoration shall not entitle Lessor to terminate this Lease, or if,
         despite the cost, Lessor does not elect to terminate this Lease, Lessor
         shall restore the Building and the Premises with reasonable promptness,
         subject to Force Majeure, and Lessee shall have no right to terminate
         this Lease. Lessor need not restore fixtures and improvements owned or
         installed by Lessee.

                                       10

<PAGE>

         In any case in which use of the Premises is affected by any damage to
         the Building, there shall be either an abatement or an equitable
         reduction in Fixed Basic Rent, depending on the period for which and
         the extent to which the Premises are not reasonably usable for the
         purpose for which they are leased hereunder. The words "restoration"
         and "restore" as used in this Article 10 shall include repairs. If the
         damage results from the fault of the Lessee, Lessee's agents, servants,
         visitors or licensees, Lessee shall not be entitled to any abatement
         or reduction in Fixed Basic Rent, except to the extent of any rent
         insurance received by Lessor.

11.      EMINENT DOMAIN: If Lessee's use of the Premises is materially affected
         due to the taking by eminent domain of (a) the Premises or any part
         thereof or any estate therein; or (b) any other part of the Building;
         then, in either event, this Lease shall terminate on the date when
         title vests pursuant to such taking. The Fixed Basic Rent, and any
         Additional Rent, shall be apportioned as of said termination date and
         any Fixed Basic Rent or Additional Rent paid for any period beyond said
         date, shall be repaid to Lessee. Lessee shall not be entitled to any
         part of the award for such taking or any payment in lieu thereof, and
         Lessee hereby assigns to Lessor any and all right, title and interest
         of Lessee now or hereafter arising in or to any such award or any part
         thereof and hereby waives all rights against Lessor and the condemning
         authority, but Lessee may file a separate claim for any taking of
         fixtures and improvements owned by Lessee which have not become the
         Lessor's property, and for moving expenses, provided the same shall, in
         no way, affect or diminish Lessor's award. In the event of a partial
         taking which does not effect a termination of this Lease but does
         deprive Lessee of the use of a portion of the Premises, there shall
         either be an abatement or an equitable reduction of the Fixed Basic
         Rent, and an equitable adjustment reducing the Base Period Costs as
         hereinafter defined depending on the period for which and the extent to
         which the Premises so taken are not reasonably usable for the purpose
         for which they are leased hereunder.

12.      INSOLVENCY OF LESSEE: Either (a) the appointment of a receiver to take
         possession of all or substantially all of the assets of Lessee, or, (b)
         a general assignment by Lessee for the benefit of creditors, or, (c)
         any action taken or suffered by Lessee under any insolvency or
         bankruptcy act, shall constitute a default of this Lease by Lessee, and
         Lessor may terminate this Lease forthwith and upon notice of such
         termination Lessee's right to possession of the Premises shall cease,
         and Lessee shall then quit and surrender the Premises to Lessor but
         Lessee shall remain liable as hereinafter provided in Article 14
         hereof.

13.      LESSEE'S DEFAULT: A breach of this Lease shall have occurred if Lessee
         defaults in the payment of Fixed Basic Rent, or any Additional Rent, or
         defaults in the performance of any of the other duties, obligations,
         covenants and conditions hereof or permits the Premises to become
         deserted, abandoned or vacated, if Lessee does not cure any Fixed Basic
         Rent or Additional Rent default or a default under any of Articles 18
         or 30 within five (5) business days after receiving notice from Lessor
         of such default or, if Lessee does not cure any other default within
         thirty (30) days after receiving notice from Lessor of such default (or
         if such other default is of such nature that it cannot be completely
         cured within such period, if Lessee does not commence such curing
         within such fifteen (15) days and thereafter proceed with reasonable
         diligence and in good faith to cure such default) (each, an "Event of
         Default").

14.      LESSOR'S REMEDIES

         a.   Upon the occurrence of any Event of Default, Lessor, at its
              option, and without notice or other act, may exercise any and all
              rights and remedies at law and/or in equity under the Lease
              including, without limitation, all or any one or more of the
              following actions:

                        1. Lessor may cure for the account of Lessee any such
                        Event of Default of Lessee and immediately recover as
                        Additional Rent any reasonable expenditures made and the
                        amount of any obligations incurred in connection
                        therewith, plus interest from the date of any such
                        expenditure equal to the lesser of (A) the greater of
                        (i) twelve percent (12%) per annum, or (ii) the prime
                        rate published in the Wall Street Journal (the "Prime
                        Rate") on the date of such expenditure plus four hundred
                        (400) basis points, or (B) the

                                       11

<PAGE>

                        maximum amount or rate that Lessor may lawfully charge
                        Lessee in the circumstances if such a maximum exists; or

                        2. Lessor shall be entitled to terminate this Lease and
                        recover as a calculation of its lost profits, all Fixed
                        Basic Rent, Additional Rent, and other rent which has
                        accrued prior to the date of said Event of Default and
                        which is due for the balance of the Term and declare the
                        same to be immediately due and payable. It is agreed
                        that in determining the amount of any future payments
                        due Lessor of Lessee's Percentage of Operating Costs
                        Escalation, Utility and Energy Costs Escalation and Tax
                        Escalation Costs, Lessor may make such determination
                        based upon the sum thereof for the full Lease Year
                        immediately prior to the Event of Default. The sum set
                        forth above as aforesaid shall be discounted to present
                        value at the lower of (a) the Prime Rate in effect on
                        the date of such termination; or (b) six percent (6%)
                        (the "Lost Profit Sum"). Contemporaneously with the
                        demand for such Lost Profit Sum, this Lease shall be
                        deemed terminated and Lessee shall immediately quit and
                        surrender to Lessor the Premises in accordance with (4)
                        below. Lessee's liability for the payment of the Lost
                        Profit Sum shall survive the termination of the Lease;
                        or

                        3. Accelerate the whole or any part of the rent for the
                        entire unexpired balance of the Term (or such part
                        thereof as Lessor determines), as well as all other
                        charges, payments, costs and expenses herein agreed to
                        be paid by Lessee, and any rent or other charges,
                        payments, costs and expenses if so accelerated shall, in
                        addition to any and all installments of rent already due
                        and payable and in arrears, and any other charge or
                        payment herein reserved, included or agreed to be
                        treated or collected as rent and any other charge,
                        expense or cost herein agreed to be paid by Lessee which
                        may be due and payable and in arrears, be deemed due and
                        payable as if, by the terms and provisions of this
                        Lease, such accelerated rent and other charges,
                        payments, costs and expenses were on that date payable
                        in advance. Such sum is hereinafter referred to as the
                        "Accelerated Rent". For such purposes, all items of the
                        Additional Rent component of the Accelerated Rent,
                        Lessor may make a determination based upon such sums for
                        the full Lease Year immediately prior to the event of
                        default, or otherwise in Lessor's reasonable judgment;
                        or

                        4. Lessor, at its option, may serve notice upon Lessee
                        that this Lease and the then unexpired Term hereof shall
                        cease and expire and become absolutely void on the date
                        specified in such notice, to be no less than ten (10)
                        days after the receipt thereof by Lessee, without any
                        right on the part of the Lessee thereafter to save the
                        forfeiture by payment of any sum due or by the
                        performance of any term, provision, covenant, agreement
                        or condition broken; and, thereupon and at the
                        expiration of the time limit in such notice, this Lease
                        and the Term hereof granted, as well as the right, title
                        and interest of the Lessee hereunder, shall wholly cease
                        and expire and become void in the same manner and with
                        the same force and effect (except as to Lessee's
                        liability) as if the date fixed in such notice were the
                        date herein stated for expiration of the Term.
                        Thereupon, Lessee shall immediately quit and surrender
                        to Lessor the Premises by summary proceedings, detainer,
                        ejectment or otherwise and remove itself and all other
                        occupants thereof and, at Lessor's option, any property
                        thereon without being liable to indictment, prosecution
                        or damages therefor. No such expiration or termination
                        of this Lease shall relieve Lessee of the liabilities
                        and obligations under this Lease, whether or not the
                        Premises shall be relet, all of which shall survive such
                        expiration or termination; or

                        5. Lessor may, at any time after the occurrence of any
                        Event of Default, whether or not the Lease has been
                        terminated as aforesaid, re-enter and repossess the
                        Premises and any part thereof with or without process of
                        law, provided no undue force shall be used, and shall
                        have the option, but not the obligation either in its
                        own name, as agent for Lessee if this Lease has not

                                       12

<PAGE>

                        been terminated or for its own behalf if this Lease has
                        been terminated, to relet all or any part of the
                        Premises; provided that Lessor shall not be required to
                        accept any tenant proposed by Lessee or observe any
                        instruction given by Lessee about such reletting. The
                        failure of Lessor to relet the Premises or any part or
                        parts thereof shall not release or affect Lessee's
                        liability hereunder, nor shall Lessor be liable for
                        failure to relet, or in the event of reletting, for
                        failure to collect the rent thereof, and in no event
                        shall Lessee be entitled to receive any excess of net
                        rents collected over sums payable by Lessee to Lessor
                        hereunder. No such re-entry or taking possession of the
                        Premises shall be construed as an election on the
                        Lessor's part to terminate this Lease unless a written
                        notice of such election by Lessor is given to Lessee.
                        Notwithstanding any such reletting without termination,
                        Lessor may at any time thereafter elect to terminate
                        this Lease for any previous breach and default. For the
                        purpose of such reletting, Lessor may decorate or make
                        repairs, changes, alterations or additions in or to the
                        Premises to the extent deemed by Lessor desirable or
                        convenient, and the cost of such decoration, repairs,
                        changes, alterations or additions shall be charged to
                        and payable by Lessee as Additional Rent hereunder, as
                        well as any reasonable brokerage and legal fees expended
                        by Lessor; and any sums collected by Lessor from any new
                        tenant obtained on account of the Lessee shall be
                        credited against the balance of the rent due hereunder
                        as aforesaid. Lessee shall pay to Lessor monthly, on the
                        days when the rent would have been payable under this
                        Lease, the amount due hereunder less the amount obtained
                        by Lessor from such new tenant, if any; or

                        6. Lessor may commence one or more actions to recover
                        all unpaid rent including, without limitation, the
                        accelerated rent and/or to recover possession of the
                        Premises; or

                        7. Lessor may apply all or part of the Security Deposit.

         b.   Intentionally Omitted.

         c.   Lessor shall have the right of injunction (including, without
              limitation, specific performance) in the Event of Default, to
              restrain the same, and the right to invoke any remedy allowed by
              law or in equity, whether or not other remedies, indemnity or
              reimbursements are herein provided. The rights and remedies given
              to Lessor in this Lease or at law or in equity are distinct,
              separate and cumulative remedies, and no one of them, whether or
              not exercised by Lessor, shall be deemed to be in exclusion of any
              other.

         d.   Lessee expressly waives the benefits of all laws, now or hereafter
              in force, exempting any of Lessee's property on the Premises or
              elsewhere from distraint, levy or sale in any legal proceedings
              taken by Lessor to enforce any rights under this Lease. Lessee
              further waives the right of inquisition on any real estate that
              may be levied upon to collect any amount which may become due
              under the terms and conditions of this Lease, and does hereby
              voluntarily condemn the same and authorize the prothonotary to
              enter a Writ of Execution or other process upon Lessee's voluntary
              condemnation, and further agrees that said real estate may be sold
              on a Writ of Execution or other process. If proceedings shall be
              commenced by Lessor to recover possession under the Acts of
              Assembly, either at the end of the Term or any extension thereof
              or on sooner termination thereof, or for non-payment of rent or
              any other reason, Lessee specifically waives the right to the
              three (3) months notice and/or the fifteen (15) or thirty (30)
              days notice required by the Act of April 5, 1957, No. 20, and
              agrees that ten (10) days notice shall be sufficient in either or
              any such case. The right to enter judgment against Lessee and to
              enforce all of the other provisions of this Lease hereinabove
              provided for may be exercised by any assignee of Lessor's right,
              title and interest in this Lease, in such assignee's own name,
              notwithstanding the fact that any or all assignments of said
              right, title and interest may not be executed and/or witnessed in
              accordance with the Acts of Assembly and any and all laws
              regulating the manner and/or form in which such assignments shall
              be executed and witnessed.

                                       13

<PAGE>

         e.   INTENTIONALLY OMITTED.

         f.   CONFESSION OF JUDGMENT - POSSESSION. Lessee covenants and agrees
              that if there is an Event of Default or this Lease is terminated
              or the Term or any extensions or renewals thereof is terminated or
              expires, then, and in addition to the rights and remedies set
              forth in this Article 14, Lessor may, without limitation, cause
              judgments in ejectment for possession of the Premises to be
              entered against Lessee and, for those purposes, Lessee hereby
              grants the following warrant of attorney: (i) Lessee hereby
              irrevocably authorizes and empowers any prothonotary, clerk of
              court, attorney of any court of record and/or Lessor (as well as
              some one acting for Lessor) in any and all actions commenced for
              recovery of possession of the Premises to appear for Lessee and
              confess or otherwise enter judgment in ejectment for possession of
              the Premises against Lessee and all persons claiming directly or
              indirectly by, through or under Lessee, and thereupon writ or
              writs of possession and other process may forthwith issue and be
              served, without any prior notice, writ or proceeding whatsoever;
              (ii) if, for any reason after the foregoing action or actions
              shall have been commenced, it shall be determined that possession
              of the Premises should remain in or be restored to Lessee, Lessor
              shall have the right to commence with respect to any continuing or
              subsequent Event of Default one or more further actions as
              hereinbefore set forth to recover possession of the Premises
              including, without limitation, appearing for Lessee and confessing
              or otherwise entering judgment for possession of the Premises as
              hereinbefore set forth.

         g.   When this Lease or the Term or any extension or renewal thereof
              shall have terminated on account of an Event of Default or
              otherwise and also when the Term hereby created or any extension
              or renewal thereof shall have expired, it shall be lawful for, and
              Lessee hereby irrevocably authorizes and empowers, any
              prothonotary, clerk or attorney of any court of record to appear
              as attorney for Lessee, and in any action or actions in ejectment
              against Lessee and all persons claiming directly or indirectly by,
              through or under Lessee therein enter and otherwise confess
              judgment for the recovery by Lessor of possession the Premises,
              for which this Lease shall be sufficient warrant; thereupon, if
              Lessor so desires, an appropriate writ of possession may issue
              forthwith, without any prior writ or proceeding whatsoever. Lessor
              may commence one or more further action or actions as hereinbefore
              set forth to recover possession of the Premises, appear for Lessee
              enter and otherwise confess judgment for the recovery by Lessor of
              possession of the Premises as hereinbefore provided as often as
              Lessor elects. The warrant of attorney herein shall not be
              exhausted by any one or more exercises thereof.

              THE PRIOR TWO PARAGRAPHS SET FORTH WARRANTS OF AUTHORITY FOR AN
              ATTORNEY TO CONFESS JUDGMENTS AGAINST LESSEE FOR POSSESSION OF THE
              PREMISES. IN GRANTING THESE WARRANTS OF ATTORNEY TO CONFESS
              JUDGMENTS AGAINST LESSEE, LESSEE HEREBY KNOWINGLY, INTENTIONALLY
              AND VOLUNTARILY, AND, ON THE ADVICE OF THE SEPARATE COUNSEL OF
              LESSEE, UNCONDITIONALLY WAIVES ANY AND ALL RIGHTS LESSEE HAS OR
              MAY HAVE WITH RESPECT TO PRIOR NOTICE (EXCEPT AS TO ANY NOTICE
              REQUIRED UNDER ARTICLE 13 HEREOF) AND AN OPPORTUNITY FOR HEARING
              UNDER THE RESPECTIVE CONSTITUTIONS AND LAWS OF THE UNITED STATES
              AND THE COMMONWEALTH OF PENNSYLVANIA.

         h.   In any action or proceeding described in Subsection 14.f. and/or
              Subsection 14.g., or in connection therewith, if a copy of this
              Lease is therein verified by Lessor or someone acting for Lessor
              to be a true and correct copy of this Lease (and such copy shall
              be conclusively presumed to be true and correct by virtue of such
              verification), then it shall not be necessary to file the original
              of this Lease, any statute, rule of court of law, custom or
              practice to the contrary notwithstanding. Lessee hereby releases
              to Lessor, anyone acting for Lessor and all attorneys who may
              appear for Lessee all errors in procedure regarding the entry of
              judgment or judgments by confession or

                                       14

<PAGE>

              otherwise by virtue of the warrants of attorney contained in this
              Lease, and all liability therefor. The right to enter judgment or
              judgments by confession or otherwise by virtue of the warrants of
              attorney contained in this Lease and to enforce all of the other
              provisions of this Lease may be exercised by any assignee of
              Lessor's right, title and interest in this Lease in such
              assignee's own name, any statute, rule of court or law, custom or
              practice to the contrary notwithstanding.

         i.   Lessee, for itself and on behalf of any and all persons claiming
              through or under it (including creditors of all kinds), does
              hereby waive and surrender all right and privilege which they or
              any of them might have under or by reason of any present or future
              law, to redeem the Premises or to have a continuance of this Lease
              for the Term, as it may have been extended, after having been
              dispossessed or ejected therefrom by process of law or under the
              terms of this Lease or after the termination of this Lease as
              herein provided.

         j.   The failure or delay on the part of Lessor to enforce or exercise
              at any time any of the provisions, rights or remedies in the Lease
              shall in no way be construed to be a waiver thereof, nor in any
              way to affect the validity of this Lease or any act hereof, or the
              right of the Lessor to thereafter enforce each and every such
              provisions, right or remedy. No waiver of any breach or default of
              this Lease shall be held to be a waiver of any other or subsequent
              breach or default. The receipt by Lessor of rent at a time when
              the rent is in default under this Lease shall not be construed as
              a waiver of such default. No act or thing done by Lessor or
              Lessor's agents or employees during the Term and any extension
              thereof shall be deemed an acceptance of a surrender of the
              Premises, and no agreement to accept such a surrender shall be
              valid unless in writing and signed by Lessor.

         k.   In the event that Lessor institutes or takes any action permitted
              above following an Event of Default by Lessee, it is specifically
              agreed that Lessor shall recover from, or be paid by Lessee, in
              addition to all items which Lessor may be entitled to recover in
              law or in equity, whether or not Lessor does recover such items,
              attorney's fees, and the costs and disbursements of said
              proceeding or otherwise. Said payments shall be due as Additional
              Rent, and Lessor's petition and/or pleadings may make demand for
              payment of attorney's fees as an amount currently due and owing to
              Lessor as of the date of the petition and/or pleadings, without
              the necessity of any prior or further demand therefor or invoice
              for the same.

15.      SUBORDINATION OF LEASE: This Lease shall, at Lessor's option, or at the
         option of any holder of any underlying lease or holder of any mortgages
         or trust deed, be subject and subordinate to any such underlying leases
         and to any such mortgages or trust deed which may now or hereafter
         affect the real property of which the Premises form a part, and also to
         all renewals, modifications, consolidations and replacements of said
         underlying leases and said mortgages or trust deed. Although no
         instrument or act on the part of Lessee shall be necessary to
         effectuate such subordination, Lessee will, nevertheless, execute and
         deliver such further instruments confirming such subordination of this
         Lease as may be desired by the holders of said mortgages or trust deed
         or by any of the lessor's under such underlying leases. Lessee hereby
         appoints Lessor attorney-in-fact, irrevocably, to execute and deliver
         any such instrument for Lessee. If any underlying lease to which this
         Lease is subject terminates, Lessee shall, on timely request, attorn to
         the owner of the reversion.

16.      SECURITY DEPOSIT:

         a.   Lessee shall deliver to Lessor on the signing of this Lease, an
              irrevocable, unconditional letter of credit issued or confirmed by
              a financial institution, having a banking office in Philadelphia,
              Pennsylvania, reasonably acceptable to Lessor in the amount of Six
              Hundred Thousand Dollars ($600,000), substantially in the form of
              Exhibit H attached hereto, with only such modifications as are
              acceptable to Lessor in form and substance, naming Lessor, its
              successors and assigns, as beneficiary (the "Letter of Credit")
              for the full and faithful performance of Lessee's obligations
              under this Lease, including without limitation, the surrender of
              possession of the Premises to Lessor as herein provided. The
              Letter of Credit shall be issued or renewed (as the case may be)
              for consecutive periods of one year each. Each renewal or
              replacement Letter or Credit shall be in substantially the same
              form as that of the letter of credit attached hereto as Exhibit H.
              In the event the Letter of

                                       15

<PAGE>

              Credit is not renewed or reissued at least ten (10) business days
              prior to the expiration of the then existing Letter of Credit,
              Lessor shall be entitled to draw-down on the Letter of Credit in
              the full amount thereof, or in any lesser amount in Lessor's
              discretion. The amount of any such draw-down shall be deposited in
              a money market account (the "Account"), and no amount thereof
              shall be finally released to Lessor until and unless Lessee
              defaults with respect to its obligations under the terms of this
              Lease. Upon the reissue or renewal of the Letter of Credit as
              required hereunder, any amount remaining in the Account. For
              purposes of this Lease the term "Security Deposit" shall be deemed
              to mean the Letter of Credit or the funds in the Account, as the
              case may be.

         b.   Provided that no default by Lessee with respect to the payment of
              Fixed Basic Rent, of any Additional Rent, or any other monetary
              obligation (each a "Monetary Obligation") has occurred and is
              continuing (or if not continuing has been cured by payment by
              Lessee without Lessor having to draw-down funds from the Letter of
              Credit) then each annually renewed or re-issued Letter of Credit
              may be for an amount that is twenty percent (20%) less than the
              amount of the immediately preceeding Letter of Credit; provided,
              however, that in no event shall the amount of the Letter of Credit
              be less than Seventy-Five Thousand Dollars ($75,000). Likewise, in
              the event that the Account is funded, provided that no default by
              Lessee with respect to a Monetary Obligation has occurred and is
              continuing (or if not continuing has been cured by payment by
              Lessee without Lessor having to draw-down funds from the Account)
              then within thirty (30) days after each anniversary of the
              Commencement Date, Lessor shall reduce the amount of money in the
              Account by twenty percent (20%) and deliver such money to Lessee;
              provided however, that in no event shall the amount of money in
              the Account be less than Seventy Five Thousand Dollars ($75,000).

         c.   Upon a default by Lessee in the performance of any of its
              obligations herein, including but not limited to the obligation to
              pay Rent, Lessor may, but shall not be required to, draw-down on
              the Letter of Credit or upon the Account, if applicable, (a) for
              the payment of Rent or any other sum in default, (b) for the
              payment of any other amount which Lessor may spend or become
              obligated to spend by reason of Lessee's default, or (c) to
              compensate Lessor for any other loss or damage which Lessor may
              suffer by reason of Lessee's default, including without
              limitation, costs and attorneys' fees incurred by Lessor to
              recover possession of the Premises upon a default by Lessee
              hereunder. Any draw-down by Lessor due to Lessee's default shall
              not constitute the cure of any default by Lessee, the waiver of
              such default, or any election by Lessor and Lessor may therefore
              exercise all remedies granted Lessor hereunder. If any portion of
              the Letter of Credit or the Account is drawn-down, Lessee shall
              restore the amount of the Letter of Credit or Account, as the case
              may be, to the sum required by this Article 16 and Lessee's
              failure to do so shall constitute a separate default hereunder by
              Lessee.

         d.   Lessee acknowledges that damages would be an inadequate remedy for
              breach of Lessee's obligation to procure and maintain the Letter
              of Credit, and that in the event Lessee defaults with respect to
              such obligation, Lessor shall be entitled to obtain an order
              specifically enforcing such obligation from any court of competent
              jurisdiction.

         e.   If Lessor applies any part of said Security Deposit to cure any
              default of Lessee, Lessee shall, on demand, deposit with Lessor
              the amount so applied so that Lessor shall have the full Security
              Deposit on hand at all times during the Term of this Lease. In the
              event a bona fide sale, subject to this Lease, Lessor shall have
              the right to transfer the Security Deposit to the vendee, and
              Lessor shall be considered released by Lessee from all liability
              for the return of the Security Deposit; and Lessee agrees to look
              solely to the new lessor for the return of the Security Deposit,
              and it is agreed that this shall apply to every transfer or
              assignment made of the Security Deposit to the new lessor.
              Provided this Lease is not in default, the Security Deposit (less
              any portions thereof used, applied or retained by Lessor in
              accordance with the provisions of this Article 16), shall be
              returned to Lessee after the expiration or sooner termination of
              this Lease and after delivery of the entire Premises to Lessor in
              accordance with the provisions of this Lease. Lessee covenants
              that it will not

                                       16

<PAGE>

              assign or encumber or attempt to assign or encumber the Security
              Deposit and Lessor shall not be bound by any such assignment,
              encumbrance or attempt thereof.

         f.   In the event of the insolvency of Lessee, or in the event of the
              entry of a judgement in any court against Lessee which is not
              discharged within sixty (60) days after entry, or in the event a
              petition is filed by or against Lessee under any chapter of the
              bankruptcy laws of the Commonwealth of Pennsylvania or the United
              States of America, then in such event, Lessor may require the
              Lessee to deposit additional security in an amount which in
              Lessor's sole judgement would be sufficient to adequately assure
              Lessee's performance of all of its obligations under this Lease
              including all payments subsequently accruing. Failure of Lessee to
              deposit the security required by this Article 16 within ten (10)
              days after Lessor's written demand shall constitute a material
              breach of this Lease by Lessee.

17.      RIGHT TO CURE LESSEE'S BREACH: If Lessee breaches any covenant or
         condition of this Lease, Lessor may, on reasonable notice to Lessee
         (except that no notice need be given in case of emergency), cure such
         breach at the expense of Lessee and the reasonable amount of all
         expenses, including reasonable attorney's fees, incurred by Lessor in
         so doing (whether paid by Lessor or not) shall be deemed Additional
         Rent payable on demand.

18.      MECHANIC'S LIENS: Prior to Lessee or anyone on behalf of Lessee
         performing any construction or other work to, on or about the Premises
         for which a lien or claim could be filed against Lessor, the Premises,
         the Building, the Office Building Area, or Lessor's interest therein,
         Lessee shall have its general contractor execute a Waiver of Mechanic's
         Liens in recordable form and otherwise in form satisfactory to Lessor
         and provide Lessor with the original of the same for recording. In
         addition, Lessee shall cause all contracts for construction and other
         services to contain a general waiver of mechanics' liens.
         Notwithstanding the foregoing, if any mechanics' or other lien or claim
         shall be filed against Lessor, the Premises, the Building, the Office
         Building Area, or Lessor's interest therein purporting to be for labor
         or material furnished or to be furnished at the request of Lessee, then
         Lessee shall, at its sole cost and expense cause same to be discharged
         by payment, bond or otherwise within ten (10) days after the filing
         thereof. If Lessee shall fail to cause same to be discharged of record
         within such ten (10) day period, Lessor may cause same to be discharged
         by payment, bond or otherwise, without investigation as to the validity
         thereof or as to any counterclaims, offsets or defenses thereto, all at
         the sole cost and expense of Lessee. Lessee shall defend, indemnify and
         hold Lessor harmless against any and all claims, costs, damages,
         liabilities and expenses (including reasonable attorneys' fees) which
         may be brought or imposed against or incurred by Lessor by reason of
         any such lien or claim or the discharge thereof.

19.      RIGHT TO INSPECT AND REPAIR: Lessor may enter the Premises but shall
         not be obligated to do so (except as required by any specific provision
         of this Lease) at any reasonable time on reasonable notice to Lessee
         (except that no notice need be given in case of emergency) for the
         purpose of inspection or the making of such repairs, replacement or
         additions in, to, on and about the Premises or the Building, as Lessor
         deems necessary or desirable. Lessee shall have no claims or cause of
         action against Lessor by reason thereof.

20.      SERVICES TO BE PROVIDED BY LESSOR/LESSOR'S EXCULPATION: Subject to
         intervening laws, ordinances, regulations and executive orders, while
         Lessee is not in default under any of the provisions of this Lease,
         Lessor agrees to furnish, except on holidays, as set forth on Exhibit E
         attached hereto and made a part hereof:

         a.   The cleaning services, as set forth on Exhibit D attached hereto
              and made a part hereof, and subject to the conditions therein
              stated. Except as set forth on Exhibit D, Lessee shall pay the
              cost of all other cleaning services required by Lessee.

         b.   Heating, ventilating and air conditioning (herein "HVAC") as
              appropriate for the season (the electric energy cost to be paid by
              Lessee as provided in Article 22), and as set forth on Exhibit
              C-1, attached hereto and made a part hereof, together with Common
              Facilities lighting and electric energy all during "Building
              Hours", as hereinafter defined.

                                       17

<PAGE>

         c.   Cold and hot water for drinking and lavatory purposes.

         d.   Elevator service during Building Hours (if the Building contains
              an elevator or elevators for the use of the occupants thereof).

         e.   Restroom supplies and exterior window cleaning when reasonably
              required.

         f.   Notwithstanding the requirements of Exhibit C-1 (as to HVAC) or D
              or any other provision of this Lease, Lessor shall not be liable
              for failure to furnish any of the aforesaid services when such
              failure is due to Force Majeure, as hereinafter defined. Lessor
              shall not be liable, under any circumstances, including, but not
              limited to, that arising from the negligence of Lessor, its
              agents, servants or invitees, or from defects, errors or omissions
              in the construction or design of the Premises and/or the Building,
              including the structural and non-structural portions thereof, for
              loss of or injury to Lessee or to property, however occurring,
              through or in connection with or incidental to the furnishings of,
              or failure to furnish, any of the aforesaid services or for any
              interruption to Lessee's business, however occurring, except as to
              the possible abatement of Rent as set forth in Article 21.

21.      INTERRUPTION OF SERVICES OR USE: Interruption or curtailment of any
         service maintained in the Building or at the Office Building Area, if
         caused by Force Majeure, as hereinafter defined, shall not entitle
         Lessee to any claim against Lessor or to any abatement in rent, and
         shall not constitute a constructive or partial eviction, unless Lessor
         fails to take measures as may be reasonable under the circumstances to
         restore the service without undue delay. If the Premises are rendered
         untenantable in whole or in part, for a period of ten (10) consecutive
         business days, by the making of repairs, replacements or additions,
         other than those made with Lessee's consent or caused by misuse or
         neglect by Lessee, or Lessee's agents, servants, visitors or licensees,
         there shall be a proportionate abatement of Rent from and after said
         tenth (10th) consecutive business day and continuing for the period of
         such untenantability. In no event, shall Lessee be entitled to claim a
         constructive eviction from the Premises unless Lessee shall first have
         notified Lessor in writing of the condition or conditions giving rise
         thereto, and if the complaints be justified, unless Lessor shall have
         failed, within a reasonable time after receipt of such notice, to
         remedy, or commence and proceed with due diligence to remedy such
         condition or conditions, all subject to Force Majeure as hereinafter
         defined.

22.      BUILDING STANDARD OFFICE ELECTRICAL SERVICE:

         a.   The cost of electric current which is supplied by the Lessor for
              use by the Lessee in the Premises, including for heating or air
              conditioning purposes, shall be reimbursed to the Lessor as
              Additional Rent at terms, classification and rates normally
              charged by the public utilities corporation serving that part of
              the municipality where the subject Premises are located. Lessor
              shall furnish (a) heat, ventilation and air conditioning
              (including the labor, maintenance and equipment necessary to
              provide the same), (b) electricity and other utilities needed to
              operate such systems and (c) electricity for lighting and general
              power for office use. Each of the foregoing to be paid for by
              Lessee, to the extent that such utilities and/or services are not
              separately chargeable to another occupant of the Building; and to
              the extent that such utilities and/or services have not been
              deemed by Lessor to be Operating Expenses, as follows:

              1.   Standard Usage; Business Hours. Lessee shall pay, as
                   Additional Rent its pro rata share (based upon Lessee's Pro
                   Rata Share, but subject to the last sentence of this
                   subparagraph) of the cost to the respective Building
                   (including applicable sales or use taxes) for the foregoing
                   services during "Business Hours" (as hereinafter defined) and
                   for "Building Standard Consumption" (as hereinafter defined).
                   Such payment shall be made by Lessee within thirty (30) days
                   after submission by Lessor of a statement to Lessee setting
                   forth the amount due. "Business Hours" shall mean Monday
                   through Friday from 8:30 a.m. to 6:00 p.m., Holidays (defined
                   below) excepted. New Year's Day, Memorial Day, Independence
                   Day, Labor Day, Thanksgiving, Christmas, or any day set aside
                   to celebrate such holidays are

                                       18

<PAGE>

                   "Holidays" under this Lease. "Building Standard Consumption"
                   shall mean the consumption necessary, in Lessor's reasonable
                   judgment, for use and comfortable occupancy of the Demised
                   Premises when occupied by the density of people for which the
                   building standard system was designed with occupants using
                   Standard Office Equipment. "Standard Office Equipment" shall
                   mean all office equipment normally found in an office
                   facility but shall not include computer and communication
                   systems (other than personal computers and fax machines in
                   numbers typical of standard office use), telephone switches
                   and conference or training rooms (or items similar thereto)
                   which require Additional Electric Equipment, as hereinafter
                   defined in Paragraph 22(e) below, or additional air
                   conditioning service or systems. In determining Lessee's pro
                   rata share for the foregoing services for any period, the
                   cost for the foregoing services shall be deemed for such
                   period to be an amount equal to the like expenses which
                   Lessor reasonably determines would normally be incurred had
                   the Building been fully occupied throughout such period.

              2.   Non-Standard Usage; After-Hours. Lessee shall pay, as
                   Additional Rent, the cost of supplying the Demised Premises
                   with the foregoing services at times outside of Business
                   Hours or in amounts in excess of Building Standard
                   Consumption, at such rates as Lessor shall specify from time
                   to time to cover all of the estimated costs and expenses
                   incurred by Lessor in connection with supplying the Demised
                   Premises with such service, including without limitation the
                   costs of labor and utilities associated with such service and
                   including applicable sales or use taxes thereon, such amounts
                   to be paid by Lessee within thirty (30) days after submission
                   by Lessor of a statement to Lessee setting forth the amount
                   due. With respect to heat, ventilation and air conditioning
                   required by Lessee outside of Business Hours, Lessee shall
                   notify Lessor at least 24 hours in advance when such
                   after-hours use is desired, except if such use is desired for
                   a weekend, in which event Lessee shall notify Lessor no later
                   than 10:00 a.m. on the Friday immediately preceding such
                   weekend.

              3.   Separate Metering; Survey. Lessor reserves the right, at
                   Lessee's sole cost, to determine Lessee's charge for
                   electrical usage by separate meter or electrical engineering
                   survey. If Lessor elects to install a submeter to measure
                   Lessee's electric service use and if such installation is not
                   required due to Lessee's excess consumption, as reasonably
                   determined by Lessor, then the cost of such submeter shall be
                   borne by Lessor. At any time after the installation of
                   separate metering for the Demised Premises (or any part
                   thereof), or the completion of such survey, Lessor shall
                   furnish to Lessee a statement setting forth the amount due
                   for Lessee's electric usage (or the part thereof that is so
                   metered or subject to such survey), and the total amount set
                   forth in such statement shall be due and payable by Lessee
                   within ten (10) days after submission to Lessee by Lessor of
                   such statement. In such case, Lessee shall pay for such
                   consumption based upon the average KWH rate paid by Lessor.

              4.   System Failure. Lessor shall not be responsible for any
                   failure or inadequacy of the air conditioning system if such
                   failure or inadequacy results from the occupancy of the
                   Demised Premises by persons in excess of the density
                   anticipated or for which the system was designed, or if
                   Lessee uses the Demised Premises in a manner for which it was
                   not designed, or if Lessee installs or operates machines,
                   appliances or equipment which exceed the maximum wattage per
                   square foot contemplated by, or generate more heat than
                   anticipated in, the design of the Demised Premises (as such
                   design standards may be established by Lessor).

              5.   Additional Electrical Equipment. Lessee will not install or
                   use electrically-operated equipment in excess of the design
                   capacity of the Demised Premises (as such design standards
                   may be established by Lessor) and Lessee will not install or
                   operate in the Demised Premises any

                                       19

<PAGE>

                   electrically-operated equipment or machinery other than that
                   commonly used in a normal office operation without first
                   obtaining the prior written consent of the Lessor. Lessor may
                   condition any consent required under this Paragraph 22(e)
                   upon the installation of separate meters (and transformers or
                   electrical panels) for such equipment or machinery at
                   Lessee's expense and the payment by Lessee of additional rent
                   as compensation for the additional consumption of electricity
                   occasioned by the operation of such additional equipment or
                   machinery, at the rates and in the manner set forth in
                   Paragraph 22(a) or (b) above.

              6.   Regulatory Compliance. The furnishing of the foregoing
                   heating, ventilation, air conditioning and electricity
                   services shall be subject to any statute, ordinance, rule,
                   regulation, resolution or recommendation for energy
                   conservation which may be promulgated by any governmental
                   agency or organization which Lessor shall be required to
                   comply with or which Lessor determines in good faith to
                   comply with.

         b.   In the event that there shall be an increase or decrease in the
              rate schedule (including surcharges or demand adjustments), of the
              public utility for the supply of Building Standard Office
              Electrical Service, or the imposition of any tax with respect to
              such service or increase in any such tax following the Lease
              Term's commencement, the Additional Rent payable hereunder shall
              be adjusted equitably to reflect the increase or decrease in rate
              or imposition or increase in the aforesaid tax. All computations
              shall be made on the basis of Lessee's surveyed usage as if a
              meter exclusively measuring such usage to the Premises was in
              place.

         c.   Lessee covenants that it shall notify Lessor immediately upon the
              introduction of any office equipment or lighting different from
              that on the Premises as of Lessor's electrical survey or in
              addition to the aforesaid equipment or lighting on the Premises as
              of said survey. The introduction of any new or different equipment
              or lighting shall be cause for, at Lessor's election, a
              resurveying of the Premises at Lessee's expense. Lessor reserves
              the right to inspect the Premises to insure compliance with this
              provision.

         d.   Lessor shall not be liable in any way to Lessee for any loss,
              damage or expense which Lessee may sustain or incur as a result of
              any failure, defect or change in the quantity or character of
              electrical energy available for redistribution to the Premises
              pursuant to this Article 22 nor for any interruption in the
              supply, and Lessee agrees that such supply may be interrupted for
              inspection, repairs and replacement and in emergencies. In any
              event, the full measure of Lessor's liability for any interruption
              in the supply due to Lessor's acts or omissions shall be an
              abatement of Fixed Basic Rent and Additional Rent, unless Lessor
              fails to take such measures as may be reasonable under the
              circumstances to restore such service without undue delay. In no
              event shall Lessor be liable for any business interruption
              suffered by Lessee.

         e.   Lessor, at Lessee's expense, shall furnish and install all
              replacement lighting tubes, lamps, ballasts and bulbs required in
              the Premises. Lessee, however, shall have the right to furnish
              and/or install any or all of the items mentioned in this Article
              22(e).

         f.   Lessee's use of electrical service as contemplated herein shall be
              during Building Hours, and any use in excess of said Building
              Hours shall result in an adjustment as set forth in Article 22(a)
              hereof to reflect such additional consumption.

23.      ADDITIONAL RENT: It is expressly agreed that Lessee will pay in
         addition to the Fixed Basic Rent provided in Article 3 hereof, an
         Additional Rent to cover Lessee's Percentage as defined in the
         Preamble, of the increased cost to Lessor, for each of the categories
         enumerated herein, over the "Base Period Costs", as defined in the
         Preamble for said categories.

         a.   OPERATING COST ESCALATION -- If the Operating Costs incurred for
              the Building in which the Premises are located and Office Building
              Area for any Lease Year or Partial Lease Year during the Lease
              Term shall be greater than the Base Operating

                                       20

<PAGE>

              Costs (adjusted proportionately for periods less than a Lease
              Year), then Lessee shall pay to Lessor, as Additional Rent,
              Lessee's Percentage of all such excess Operating Costs. Operating
              Costs shall include, by way of illustration and not of limitation:
              personal property taxes; management fees; labor, including all
              wages and salaries; social security taxes, and other taxes which
              may be levied against Lessor upon such wages and salaries;
              supplies; repairs and maintenance; maintenance and service
              contracts; painting; wall and window washing; laundry and towel
              service; tools and equipment (which are not required to be
              capitalized for federal income tax purposes); fire and other
              insurance; trash removal; lawn care; snow removal and all other
              items properly constituting direct operating costs according to
              standard accounting practices relating to the Building or the
              Office Building Area or both (hereinafter collectively referred to
              as the "Operating Costs"), but not including depreciation of
              Building or equipment; interest; income or excess profits taxes;
              costs of maintaining the Lessor's corporate existence; franchise
              taxes; any expenditures required to be capitalized for federal
              income tax purposes, unless said expenditures are for the purpose
              of reducing Operating Costs within the Building and Office
              Building Area, or those which under generally applied real estate
              practice are expensed or regarded as deferred expenses or are
              required under any governmental or quasi-governmental law,
              statute, ordinance, rule, order, requirements or regulation, in
              which event the costs thereof shall be included. The Base
              Operating Costs shall as be as defined in the Preamble.

         b.   COMMON AREA FUEL, UTILITIES AND ELECTRIC COST ESCALATION
              (hereinafter referred to as "Utility and Energy Costs") -- If the
              Utility and Energy Costs, including any fuel surcharges or
              adjustments with respect thereto, incurred for water, sewer, gas,
              electric, other utilities and heating, ventilating and air
              conditioning for the Building, to include all leased and leasable
              areas (not separately billed or metered within the Building) and
              Common Facilities electric, lighting, water, sewer and other
              utilities for the Building and Office Building Area, for any Lease
              Year or Partial Lease Year, during the Term, shall be greater than
              the Base Utility and Energy Costs (adjusted proportionately for
              periods less than a Lease Year), then Lessee shall pay to Lessor
              as Additional Rent, Lessee's Percentage as hereinafter defined, of
              all such excess Utility and Energy Costs. As used in this Article
              23, the Base Utility and Energy Costs shall be as defined in the
              Preamble.

         c.   TAX ESCALATION -- If the Real Estate Taxes for the Building and
              Office Building Area at which the Premises are located for any
              Lease Year or Partial Lease Year, during the Lease Term, shall be
              greater than the Base Real Estate Taxes (adjusted proportionately
              for periods less than a Lease Year), then Lessee shall pay to
              Lessor as Additional Rent, Lessee's Percentage as hereinafter
              defined, of all such excess Real Estate Taxes.

              As used in this Article 23(c), the words and terms which follow
              mean and include the following:

              i.        "Base Real Estate Taxes" shall be as defined in the
                        Preamble.

              ii.       "Real Estate Taxes" shall mean the property taxes and
                        assessments imposed upon the Building and Office
                        Building Area, or upon the rent, as such, payable to the
                        Lessor, including, but not limited to, real estate,
                        city, county, village, school and transit taxes, or
                        taxes, assessments, or charges levied, imposed or
                        assessed against the Building and Office Building Area
                        by any other taxing authority, whether general or
                        specific, ordinary or extraordinary, foreseen or
                        unforeseen. If due to a future change in the method of
                        taxation, any franchise, income or profit tax shall be
                        levied against Lessor in substitution for, or in lieu
                        of, or in addition to, any tax which would otherwise
                        constitute a Real Estate Tax, such franchise, income or
                        profit tax shall be deemed to be a Real Estate Tax for
                        the purposes hereof; conversely, any additional real
                        estate tax hereafter imposed in substitution for, or in
                        lieu of, any franchise, income or profit tax (which is
                        not in substitution for, or in lieu of, or in addition
                        to, a Real Estate Tax as hereinbefore provided) shall
                        not be deemed a Real Estate Tax for the purposes hereof.

                                       21

<PAGE>

         d.   LEASE YEAR -- As used in this Article 23, Lease Year shall mean a
              calendar year. Any portion of the Term which is less than a Lease
              Year as hereinbefore defined, that is, from the Commencement Date
              through the following December 31, and from the last January 1,
              falling within the Term to the end of the Term, shall be deemed a
              "Partial Lease Year". Any reference in this Lease to a Lease Year
              shall, unless the context clearly indicates otherwise, be deemed
              to be a reference to a Partial Lease Year if the period in
              question involves a Partial Lease Year.

         e.   PAYMENT -- At any time, and from time to time, after the
              establishment of the Base Period Costs for each of the categories
              referred to above, Lessor shall advise Lessee in writing of
              Lessee's Percentage share with respect to each of the categories
              as estimated for the next twelve (12) month period (or
              proportionate part thereof if the last period prior to the Lease's
              expiration is less than twelve (12) months) as then known to the
              Lessor, and thereafter, the Lessee shall pay as Additional Rent,
              Lessee's Percentage share of these costs for the then current
              period affected by such advice (as the same may be periodically
              revised by Lessor as additional costs are incurred) in equal
              monthly installments, such new rates being applied to any months,
              for which the Fixed Basic Rent shall have already been paid which
              are affected by the Operating Cost Escalation and/or Utility and
              Energy Cost Escalation and/or Tax Escalation Costs above referred
              to, as well as the unexpired months of the current period, the
              adjustment for the then expired months to be made at the payment
              of the next succeeding monthly rental, all subject to final
              adjustment at the expiration of each Lease Year as defined in
              Article 23(d) hereof (or Partial Lease Year if the last period
              prior to the Lease's termination is less than twelve (12) months).
              However, Lessor shall be reimbursed by Lessee monthly during the
              first year of the Term for additional Utility and Energy Cost
              Escalations resulting from an increase in the monthly rate over
              the Base Utility Rate.

              In the event the last period prior to the Lease's termination is
              less than twelve (12) months, the Base Period Costs during said
              period shall be proportionately reduced to correspond to the
              duration of said final period.

         f.   BOOKS AND REPORTS -- For the protection of Lessee, Lessor shall
              maintain books of account which shall be open to Lessee and its
              representatives at all reasonable times so that Lessee can
              determine that such Operating, Utility and Energy and Real Estate
              Tax Costs have, in fact, been paid or incurred. Lessee's
              representatives shall mean only (i) Lessee's employees and
              attorneys or (ii) a Certified Public Accounting firm. At Lessor's
              request, Lessee shall execute a confidentiality agreement
              reasonably acceptable to Lessor prior to any examination of
              Lessor's books and records. In the event Lessee disputes any one
              or more of said charges, Lessee shall attempt to resolve such
              dispute with Lessor, provided that if such dispute shall not be
              satisfactorily settled between Lessor and Lessee, the dispute
              shall be referred by either party to an independent certified
              public accountant to be mutually agreed upon, and if such an
              accountant cannot be agreed upon, The American Arbitration
              Association may be asked by either party to select an arbitrator,
              whose decision on the dispute will be final and binding upon both
              parties, who shall jointly share any cost of such arbitration.
              Pending resolution of said dispute the Lessee shall pay to Lessor
              the sum so billed by Lessor subject to its ultimate resolution as
              aforesaid.

         g.   RIGHT OF REVIEW -- Once Lessor shall have finally determined said
              Operating, Utility and Energy or Real Estate Tax Costs at the
              expiration of a Lease Year, then as to the item so established,
              Lessee shall only be entitled to dispute said charge as finally
              established for a period of six (6) months after such charge is
              finally established, and Lessee specifically waives any right to
              dispute any such charge at the expiration of said six (6) month
              period.

         h.   OCCUPANCY ADJUSTMENT -- If, with respect to Operating Cost
              Escalation, as established in Article 23(a) hereof, and Utility
              and Energy Cost Escalation, as established in Article 23(b)
              hereof, the Building is less than ninety percent (90%) occupied
              during the establishment of the respective Base Periods, then the
              Base Costs incurred with respect to said Operating Cost or Utility
              and Energy Cost shall be adjusted during any such period within
              the Base Period so as to reflect ninety

                                       22

<PAGE>

              percent (90%) occupancy. Similarly, if during any Lease Year or
              Partial Lease Year, subsequent to the Base Period the Building is
              less than ninety percent (90%) occupied, then the actual costs
              incurred for Operating Cost and Utility and Energy Cost shall be
              increased during any such period to reflect ninety percent (90%)
              occupancy so that at all times after the Base Period the Operating
              Cost or Utility and Energy Cost shall be actual costs, but in the
              event less than ninety percent (90%) of the Building is occupied
              during all or part of the Lease Year involved, the Operating Cost
              or Utility and Energy Cost shall not be less than that which would
              have been incurred had ninety percent (90%) of the Building been
              occupied. The aforesaid adjustment shall only be made with respect
              to those items that are in fact affected by variations in
              occupancy levels.

24.      LESSEE'S ESTOPPEL: Lessee shall, from time to time, on not less that
         ten (10) days prior written request by Lessor, execute, acknowledge and
         deliver to Lessor a written statement certifying that the Lease is
         unmodified and in full force and effect, or that the Lease is in full
         force and effect as modified and listing the instruments of
         modification; the dates to which the rents and charges have been paid;
         and, to the best of Lessee's knowledge, whether or not Lessor is in
         default hereunder, and if so, specifying the nature of the default. It
         is intended that any such statement delivered pursuant to this Article
         24 may be relied on by a prospective purchaser of Lessor's interest or
         mortgagee of Lessor's interest or assignee of any mortgage of Lessor's
         interest. Lessee shall also execute and deliver the form "Lessee
         Estoppel Certificate" attached hereto as Exhibit F.

25.      HOLDOVER TENANCY: Should Lessee continue to occupy the Demised Premises
         after expiration of the Term of this Lease or any renewal or renewals
         thereof, or after a forfeiture or other termination thereof, such
         tenancy shall (without limitation on any of Lessor's rights or remedies
         therefor) be one at sufferance from month to month at a minimum monthly
         rent for the first month equal to one and one-half times and thereafter
         equal to two times the Fixed Basic Rent and Additional Rent payable for
         the last month of the term of this Lease for each month of such
         occupancy. Lessee shall also pay all damages suffered or incurred by
         Lessor as a result of or arising from such holdover tenancy.

26.      RIGHT TO SHOW PREMISES: Lessor may show the Premises to prospective
         purchasers and mortgagees; and to prospective tenants, during Building
         Hours on reasonable notice to Lessee.

27.      LESSOR'S WORK - LESSEE'S DRAWINGS:

         a.   Lessor agrees that, prior to the commencement of the Term of this
              Lease, it will do substantially all of the work in the Premises in
              accordance with Exhibit C attached hereto and made a part hereof.
              Lessor will provide the Construction Allowance to complete The
              Work (as defined in Exhibit C) pursuant to the terms and
              conditions set forth in Exhibit C.

         b.   Lessee will supply such drawings and information, including
              without limitation Construction Documents, to Lessor as set forth
              in Exhibit C. Any delay occasioned by Lessee's failure to timely
              supply such drawings and information shall not delay the
              Commencement Date of the Term and Lessee's obligations hereunder,
              and the same shall commence on the date the Premises would have
              been delivered to Lessee pursuant to Article 2, but for Lessee's
              delay.

         c.   Lease commencement shall occur and the Commencement Date is
              defined as that date when Lessor has done substantially all of the
              work to be done by Lessor in accordance with Exhibit C and, if
              required by Tinicum Township, has obtained a certificate of
              occupancy with respect to the Premises, unless Lessor has been
              precluded from completing said work or obtaining such certificate
              as a result of Lessee's acts or omissions or unless Lessee has
              taken occupancy of the Premises. Occupancy by Lessee or the
              delivery of a Certificate of Occupancy by Lessor (if required
              pursuant to local law) shall be prima facie evidence that Lessor
              has done substantially all of the work.

28.      WAIVER OF TRIAL BY JURY: To the extent such waiver is permitted by law,
         the parties

                                       23

<PAGE>

         waive trial by jury in any action or proceeding brought in connection
         with this Lease or the Premises.

29.      LATE CHARGE: Anything in this Lease to the contrary notwithstanding, at
         Lessor's option, Lessee shall pay a "Late Charge" of eight percent (8%)
         of any installment of Fixed Basic Rent or Additional Rent paid more
         than five (5) days after the due date thereof, to cover the extra
         expense involved in handling delinquent payments, said Late Charge to
         be considered Additional Rent. The amount of the Late Charge to be paid
         by Lessee shall be reassessed and added to Lessee's obligations for
         each successive monthly period until paid.

30.      LESSEE'S INSURANCE:

         a.   Lessee covenants to provide at Lessee's cost and expense on or
              before the earlier of (i) the Commencement Date, or (ii) Lessee's
              taking actual possession for the purpose of completing any
              improvement work, and to keep in full force and effect during the
              entire Term and so long thereafter as Lessee, or anyone claiming
              by, through or under Lessee, shall occupy the Premises, insurance
              coverage as follows:

              i.        Commercial General Liability insurance with contractual
                        liability endorsements with respect to the Premises and
                        the business of Lessee in which Lessee shall be
                        adequately covered under limits of liability of not less
                        than FIVE MILLION AND 00/100 DOLLARS ($5,000,000)
                        combined single limit per occurrence for bodily or
                        personal injury (including death) and property damage.
                        Such insurance may be carried (x) under a blanket policy
                        covering the Premises and other locations of Lessee, if
                        any, provided that each such policy shall in all
                        respects comply with this Article and shall specify that
                        the portion of the total coverage of such policy that is
                        allocated to the Premises is in the amounts required
                        pursuant to this Article 30 and (y) under a primary
                        liability policy of not less than ONE MILLION AND 00/100
                        DOLLARS ($1,000,000) and the balance under an umbrella
                        policy. Notwithstanding anything to the contrary
                        contained in this Lease, the carrying of insurance by
                        Lessee in compliance with this Article 30 shall not
                        modify, reduce, limit or impair Lessee's obligations and
                        liability under Article 33 hereof.

              ii.       Fire and Extended Coverage, Vandalism, Malicious
                        Mischief, Sprinkler Leakage and Special Extended
                        Coverage Insurance in an amount adequate to cover the
                        cost of replacement of all personal property,
                        decoration, trade fixtures, furnishings, equipment in
                        the Premises and all contents therein. Lessor shall not
                        be liable for any damage to such property of Lessee by
                        fire or other peril includable in the coverage afforded
                        by the standard form of fire insurance policy with
                        extended coverage endorsement attached (whether or not
                        such coverage is in effect), no matter how caused, it
                        being understood that the Lessee will look solely to its
                        insurer for reimbursement.

              iii.      Workers' Compensation and Employer's Liability insurance
                        affording statutory coverage and containing statutory
                        limits with the Employer's Liability portion thereof to
                        have minimum limits of $1,000,000.00.

              iv.       Said limits shall be subject to periodic review and
                        Lessor reserves the right to increase said coverage
                        limits if, in the reasonable opinion of Lessor, said
                        coverage becomes inadequate and is less than that
                        commonly maintained by tenants in similar buildings in
                        the area by tenants making similar uses. On or before
                        the Commencement Date, and thereafter at Lessor's
                        request, Lessee shall provide Lessor evidence of the
                        insurance coverage required herein in the form of a
                        duplicate original insurance policy, an insurance binder
                        (countersigned by the insurer), or Evidence of Insurance
                        (in form ACORD 27) for each of the insurance policies
                        Lessee is required to carry in compliance with its
                        obligations under this Lease which shall be delivered to
                        Lessor at least fifteen (15) days prior to the time such
                        insurance is first required to be carried by Lessee.

                                       24

<PAGE>

         b.   All of the aforesaid insurance shall (i) name Lessor as an
              additional insured; (ii) be written by one or more responsible
              insurance companies licensed in the Commonwealth of Pennsylvania
              satisfactory to Lessor and in form satisfactory to Lessor; (iii)
              contain endorsements substantially as follows: "It is understood
              and agreed that the insurer will give to Lessor, or any successor
              lessor, c/o Mack-Cali Realty Corporation, 11 Commerce Drive,
              Cranford, New Jersey, thirty (30) days prior written notice of any
              material change in or cancellation of this policy."; (iv) shall be
              written on an "occurrence" basis and not on a "claims made" basis.

         c.   Lessee shall be solely responsible for payment of premium and
              Lessor (or its designee) shall not be required to pay any premium
              for such insurance. Lessee shall deliver to Lessor at least
              fifteen (15) days prior to the expiration of such policy, either a
              duplicate original or a certificate it being the intention of the
              parties hereto that the insurance required under the terms hereof
              shall be continuous during the entire Term of this Lease and any
              other period of time during which pursuant to the Term hereof,
              said insurance is required. Any insurance carried by Lessee shall
              be in excess of and will not contribute with the insurance carried
              by Lessor for injuries or damage arising out of the Premises.

         d.   Lessee agrees, at its own cost and expense, to comply with all
              rules and regulations of the National Fire Protection Association
              (NFPA) National Fire Code. If, or from time to time, as a result
              of or in connection with any failure by Lessee to comply with the
              foregoing sentence or any act or omission or commission by Lessee,
              its employees, agents, contractors or licensees, or a result of or
              in connection with the use to which the Premises are put
              (notwithstanding that such use may be for the purposes
              hereinbefore permitted or that such use may have been consented to
              by Lessor), the fire insurance rate(s) applicable to the Premises
              shall be higher than that which would be applicable for a business
              office legally permitted therein, Lessee agrees that it will pay
              to Lessor as Additional Rent, such portion of the premiums for all
              Lessor's fire insurance policies in force with respect to the
              building and the contents of any occupant thereof as shall be
              attributable to such higher rate(s).

         e.   Lessor makes no representation that the limits of liability
              specified to be carried by Lessee or Lessor under the terms of
              this Lease are adequate to protect Lessee against Lessee's
              undertaking under this Article 30, and in the event Lessee
              believes that any such insurance coverage called for under this
              Lease is insufficient, Lessee shall provide, at is own expense,
              such additional insurance as Lessee deems adequate.

         f.   In the event the Premises or its contents are damaged or destroyed
              by fire or other insured casualty, (i) Lessor, to the extent of
              the coverage of Lessor's policies of fire insurance, hereby waives
              its rights, if any, against Lessee with respect to such damage or
              destruction, even if said fire or other casualty shall have been
              caused, in whole or in part, by the negligence of Lessee, and (ii)
              Lessee, to the extent of the coverage of Lessee's policies of fire
              insurance with extended coverage, hereby waives its rights, if
              any, against Lessor with respect to such damage, or destruction,
              even if said fire or other casualty shall have been caused, in
              whole or in part, by the negligence of Lessor; provided, however,
              such waivers of subrogation shall only be effective with respect
              to loss or damage occurring during such time as Lessor's or
              Lessee's policies of fire insurance (as the case may be) shall
              contain a clause or endorsement providing in substance that the
              aforesaid waiver of subrogation shall not prejudice the type and
              amount of coverage under such policies or the right of Lessor or
              Lessee (as the case may be) to recover thereunder. If, at any
              time, Lessor's or Lessee's insurance carrier refuses to write
              insurance which contains a consent to the foregoing waiver of
              subrogation, Lessor or Lessee, as the case may be, shall notify
              the party thereof in writing, and upon the giving of such notice,
              the provisions of this Section shall be null and void as to any
              casualty which occurs after such notice. If Lessor's or Lessee's
              insurance carrier shall make a charge for the incorporation of the
              aforesaid waiver of subrogation in its policies, then the party
              requesting the waiver shall promptly pay such charge to the other
              party upon demand. In the event the party requesting their waiver
              fails to pay such charge upon demand, the other party shall be
              released of its obligation to supply such waiver.

                                       25
<PAGE>

         g.   Should Lessee fail to maintain the insurance coverage as set forth
              in this Article 30, then Lessee shall be in default hereunder and
              shall be deemed to have breached its covenants as set forth
              herein.

31.      NO OTHER REPRESENTATIONS: No representations or promises shall be
         binding on the parties hereto except those representations and promises
         contained herein or in some future writing signed by the party making
         such representation(s) or promise(s).

32.      QUIET ENJOYMENT: Lessor covenants that if, and so long as, Lessee pays
         Fixed Basic Rent, and any Additional Rent as herein provided, and
         performs Lessee's covenants hereof, Lessor shall do nothing to affect
         Lessee's right to peaceably and quietly have, hold and enjoy the
         Premises for the Term herein mentioned, subject to the provisions of
         this Lease.

33.      INDEMNITY: Lessee shall defend, indemnify and save harmless Lessor and
         its agents against and from; (a) any and all claims (i) arising from
         (x) the conduct or management by Lessee, its subtenants, licensees, its
         or their employees, agents, contractors or invitees on the Premises or
         of any business therein, or (y) any work or thing whatsoever done, or
         any condition created (other than by Lessor for Lessor's or Lessee's
         account) in or about the Premises during the Term of this Lease, or
         during the period of time, if any, prior to the Commencement Date that
         Lessee may have been given access to the Premises, (z) any default by
         Lessee under the terms, covenants and conditions of this Lease or (ii)
         arising from any negligent or otherwise wrongful act or omission of
         Lessee or any of its subtenants or licensees or its or their employees,
         agents, contractors or invitees, and (b) all costs, expenses and
         liabilities including reasonable attorneys fees and disbursements
         incurred in or in connection with each such claim, action or proceeding
         brought thereon. In case any action or proceeding be brought against
         Lessor by reason of any such claim, Lessee, upon notice from Lessor,
         shall resist and defend such action or proceeding.

34.      ARTICLE HEADINGS: The article headings in this Lease and position of
         its provisions are intended for convenience only and shall not be taken
         into consideration in any construction or interpretation of this Lease
         or any of its provisions. The Exhibits and Schedule referred to herein
         and attached hereto are made a part of this Lease.

35.      APPLICABILITY TO HEIRS AND ASSIGNS: The provisions of this Lease shall
         apply to, bind and inure to the benefit of Lessor and Lessee, and their
         respective heirs, successors, legal representatives and assigns. It is
         understood that the term "Lessor" as used in this Lease means only the
         owner, a mortgagee in possession or a term lessee of the Building, so
         that in the event of any sale of the Building or of any lease thereof,
         or if a mortgagee shall take possession of the Premises, the Lessor
         herein shall be and hereby is entirely freed and relieved of all
         covenants and obligations of Lessor hereunder accruing thereafter, and
         it shall be deemed without further agreement that the purchaser, the
         term lessee of the Building, or the mortgagee in possession has assumed
         and agreed to carry out any and all covenants and obligations of Lessor
         hereunder.

36.      OUTSIDE PARKING SPACES: Lessee's occupancy of the Premises shall
         include the use of the number of outside parking spaces as set forth in
         the Preamble, all of which will be unassigned. Lessor shall not be
         responsible for any damage or theft of any vehicle in the parking area
         and shall not be required to keep parking spaces clear of unauthorized
         vehicles or to otherwise supervise the use of the parking area. Lessee
         shall, upon request, promptly furnish to Lessor the license numbers of
         the cars operated by Lessee and its subtenants, licensees, invitees,
         concessionaires, officers and employees. If any vehicle of the Lessee,
         or of any subtenant, licensee, concessionaire, or of their respective
         officers, agents or employees, is parked in any part of the Common
         Facilities other than the employee parking area(s) designated therefor
         by Lessor, Lessee shall pay to Lessor such penalty as may be fixed by
         Lessor from time to time. All amounts due under the provisions of this
         Article 36 shall be deemed to be Additional Rent.

37.      LESSOR'S LIABILITY FOR LOSS OF PROPERTY: Lessor shall not be liable for
         any loss of property from any cause whatsoever, including but not
         limited to theft or burglary from the Premises, and any such loss
         arising from the negligence of Lessor, its agents, servants or
         invitees, or from defects, errors or omissions in the construction or
         design of the Premises and/or the Building, including the structural
         and non-structural portions thereof,

                                       26

<PAGE>

         and Lessee covenants and agrees to make no claim for any such loss at
         any time.

38.      PARTIAL INVALIDITY: If any of the provisions of this Lease, or the
         application thereof to any person or circumstances, shall to any
         extent, be invalid or unenforceable, the remainder of this Lease, or
         the application of such provision or provisions to persons or
         circumstances other than those as to whom or which it is held invalid
         or unenforceable, shall not be affected thereby, and every provision of
         this Lease shall be valid and enforceable to the fullest extent
         permitted by law.

39.      LESSEE'S BROKER: Lessee represents and warrants to Lessor that the
         Broker, as defined in the Preamble is the sole broker with whom Lessee
         has negotiated in bringing about this Lease and Lessee agrees to
         indemnify and hold Lessor and its mortgagee(s) harmless from any and
         all claims of other brokers and expenses in connection therewith
         arising out of or in connection with the negotiation of or the entering
         into this Lease by Lessor and Lessee. Lessor shall be responsible for
         any commission due to said Broker pursuant to a separate agreement
         between Lessor and Broker. In no event shall Lessor's mortgagee(s) have
         any obligation to any broker involved in this transaction. In the event
         that no broker was involved as aforesaid, then Lessee represents and
         warrants to the Lessor that no broker brought about this transaction,
         and Lessee agrees to indemnify and hold Lessor harmless from any and
         all claims of any broker arising out of or in connection with the
         negotiations of, or entering into of, this Lease by Lessee and Lessor.

40.      PERSONAL LIABILITY: Notwithstanding anything to the contrary provided
         in this Lease, it is specifically understood and agreed, such agreement
         being a primary consideration for the execution of this Lease by
         Lessor, that there shall be absolutely no personal liability on the
         part of Lessor, its constituent members (to include but not be limited
         to, officers, directors, partners and trustees) their respective
         successors, assigns or any mortgagee in possession (for the purposes of
         this Article, collectively referred to as "Lessor"), with respect to
         any of the terms, covenants and conditions of this Lease, and that
         Lessee shall look solely to the equity of Lessor in the Building for
         the satisfaction of each and every remedy of Lessee in the event of any
         breach by Lessor of any of the terms, covenants and conditions of this
         Lease to be performed by Lessor, such exculpation of liability to be
         absolute and without any exceptions whatsoever.

41.      NO OPTION: The submission of this Lease Agreement for examination does
         not constitute a reservation of, or option for, the Premises, and this
         Lease Agreement becomes effective as a Lease Agreement only upon
         execution and delivery thereof by Lessor and Lessee.

42.      DEFINITIONS:

         a.   AFFILIATE -- Affiliate shall mean any corporation related to
              Lessee as a parent, subsidiary or brother-sister corporation so
              that such corporation and such party and other corporations
              constitute a controlled group as determined under Section 1563 of
              the Internal Revenue Code of 1986, as amended and as elaborated by
              the Treasury Regulations promulgated thereunder or any business
              entity in which Lessee has more than a fifty percent (50%)
              interest.

         b.   COMMON FACILITIES -- Common Facilities shall mean the non-assigned
              parking areas; lobby; elevator(s); fire stairs; public hallways;
              public lavatories; all other general Building facilities that
              service all Building tenants; air conditioning rooms; fan rooms;
              janitors' closets; electrical closets; telephone closets; elevator
              shafts and machine rooms; flues; stacks; pipe shafts and vertical
              ducts with their enclosing walls. Lessor may at any time close
              temporarily any Common Facilities to make repairs or changes
              therein or to effect construction, repairs or changes within the
              Building, or to discourage non-tenant parking, and may do such
              other acts in and to the Common Facilities as in its judgement may
              be desirable to improve the convenience thereof, but shall always
              in connection therewith, endeavor to minimize any inconvenience to
              Lessee.

         c.   FORCE MAJEURE -- Force Majeure shall mean and include those
              situations beyond Lessor's reasonable control, including by way of
              example and not by way of limitation, acts of God; accidents;
              repairs; strikes; shortages of labor, supplies or

                                       27

<PAGE>

              materials; inclement weather; or, where applicable, the passage of
              time while waiting for an adjustment or insurance proceeds. Any
              time limits required to be met by either party hereunder, whether
              specifically made subject to Force Majeure or not, except those
              related to the payment of Fixed Basic Rent or Additional Rent,
              shall, unless specifically stated to the contrary elsewhere in
              this Lease, be automatically extended by the number of days by
              which any performance called for is delayed due to Force Majeure.

         d.   LESSEE'S PERCENTAGE -- The parties agree that Lessee's Percentage,
              as defined in the Preamble, reflects and will be continually
              adjusted to reflect the ratio of the gross square feet of the area
              rented to Lessee (including an allocable share of all Common
              Facilities) [the numerator] as compared with the total number of
              gross square feet of the entire Building (or additional buildings
              that may be constructed within the Office Building Area) [the
              denominator] measured outside wall to outside wall, but excluding
              therefrom any storage areas. Lessor shall have the right to make
              changes or revisions in the Common Facilities of the Building so
              as to provide additional leasing area. Lessor shall also have the
              right to construct additional buildings in the Office Building
              Area for such purposes as Lessor may deem appropriate, and
              subdivide the lands for that purpose if necessary, and upon so
              doing, the Office Building Area shall become the subdivided lot on
              which the Building in which the Premises is located. However, if
              any service provided for in Article 23(a) or any utility provided
              for in Article 23(b) is separately billed or separately metered
              within the Building, then the square footage so billed or metered
              shall be subtracted from the denominator and the Lessee's
              proportionate share for such service and/or utility shall be
              separately computed, and the Base Costs for such item shall not
              include any charges attributable to said square footage. Lessee
              understands that as a result of changes in the layout of the
              Common Facilities from time to time occurring due to, by way of
              example and not by way of limitation, the rearrangement of
              corridors, the aggregate of all Building tenant proportionate
              shares may be equal to, less than or greater than one hundred
              percent (100%).

43.      LEASE COMMENCEMENT: Notwithstanding anything contained herein to the
         contrary, if Lessor, for any reason whatsoever, including Lessor's
         negligence except as provided for in Article 27(b), cannot deliver
         possession of the Premises, as provided for in Article 27(a), to Lessee
         at the commencement of the agreed Term as set forth in Article 2, this
         Lease shall not be void or voidable, nor shall Lessor be liable to
         Lessee for any loss or damage resulting therefrom, but in that event,
         the Term shall be for the full term as specified above to commence from
         and after the date Lessor shall have delivered possession of the
         Premises to Lessee or from the date Lessor would have delivered
         possession of the Premises to Lessee but for Lessee's failure to timely
         supply to Lessor such drawings and/or information required by Exhibit C
         or for any other reason attributable to Lessee (herein the
         "Commencement Date") and to expire midnight of the last day of the
         month that is ninety (90) months after the month in which the
         Commencement Date occurs, and if requested by Lessor, Lessor and Lessee
         shall, ratify and confirm said Commencement and Expiration Dates by
         completing and signing Exhibit G attached hereto and made a part
         hereof.

44.      NOTICES: Any notice by either party to the other shall be in writing
         and shall be deemed to have been duly given only if (i) delivered
         personally or (ii) sent by registered mail or certified mail return
         receipt requested in a postage paid envelope addressed or (iii) sent by
         nationally recognized overnight delivery service, if to Lessee, at the
         above described Building; if to Lessor, at Lessor's address as set
         forth above; or, to either at such other address as Lessee or Lessor,
         respectively, may designate in writing. Notice shall be deemed to have
         been duly given, if delivered personally, on delivery thereof, if
         mailed, upon the tenth (10th) day after the mailing thereof or if sent
         by overnight delivery service, the next business day.

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<PAGE>

45.      ACCORD AND SATISFACTION: No payment by Lessee or receipt by Lessor of a
         lesser amount than the rent and additional charges payable hereunder
         shall be deemed to be other than a payment on account of the earliest
         stipulated Fixed Basic Rent and Additional Rent, nor shall any
         endorsement or statement on any check or any letter accompanying any
         check or payment for Fixed Basic Rent or Additional Rent be deemed an
         accord and satisfaction, and Lessor may accept such check or payment
         without prejudice to Lessor's right to recover the balance of such
         Fixed Basic Rent and Additional Rent or pursue any other remedy
         provided herein or by law.

46.      EFFECT OF WAIVERS: No failure by Lessor to insist upon the strict
         performance of any covenant, agreement, term or condition of this
         Lease, or to exercise any right or remedy consequent upon a breach
         thereof, and no acceptance of full or partial rent during the
         continuance of any such breach, shall constitute a waiver of any such
         breach or of such covenant, agreement, term or condition. No consent,
         or waiver, express or implied, by Lessor to or of any breach of any
         covenant, condition or duty of Lessee shall be construed as a consent
         or waiver to or of any other breach of the same or any other covenant,
         condition or duty, unless in writing signed by Lessor.

47.      LEASE CONDITION: This Lease is expressly conditioned upon Lessor
         receiving the consent and approval of Lessor's mortgagee to its term
         and provisions not later than thirty (30) days after its execution by
         Lessee, and delivery to Lessor. Should said consent not be received
         within the aforesaid time period, Lessor may, at Lessor's sole option,
         cancel this Lease and return the first month's Fixed Basic Rent and
         Security Deposit to Lessee, which Lessee has deposited with Lessor upon
         execution of this Lease, and thereafter the parties shall have no
         further obligations to each other with respect to this Lease.

48.      MORTGAGEE'S NOTICE AND OPPORTUNITY TO CURE: Lessee agrees to give any
         mortgagees and/or trust deed holders, by registered mail, a copy of any
         notice of default served upon Lessor, provided that, prior to such
         notice, Lessee has been notified in writing (by way of notice of
         assignment of rents and leases or otherwise) of the address of such
         mortgagees and/or trust deed holders. Lessee further agrees that, if
         Lessor shall have failed to cure such default within the time provided
         for in this Lease, then the mortgagees and/or trust deed holders shall
         have an additional thirty (30) days within which to cure such default,
         or if such default cannot be cured within that time, then such
         additional time as may be necessary, if within such thirty (30) days,
         any mortgagee and/or trust deed holder has commenced and is diligently
         pursuing the remedies necessary to cure such default (including but not
         limited to commencement of foreclosure proceedings if necessary to
         effect such cure), in which event this Lease shall not be terminated
         while such remedies are being so diligently pursued.

49.      LESSOR'S RESERVED RIGHT: Lessor and Lessee acknowledge that the
         Premises are in a Building which is not open to the general public.
         Access to the Building is restricted to Lessor, Lessee, their agents,
         employees and contractors and to their invited visitors. In the event
         of a labor dispute including a strike, picketing, informational or
         associational activities directed at Lessee or any other tenant, Lessor
         reserves the right unilaterally to alter Lessee's ingress and egress to
         the Building or make any change in operating conditions to restrict
         pedestrian, vehicular or delivery ingress and egress to a particular
         location.

50.      CORPORATE AUTHORITY: If Lessee is a corporation, Lessee represents and
         warrants that this Lease has been duly authorized and approved by the
         corporation's Board of Direc tors. The undersigned officers and
         representatives of the corporation represent and warrant that they are
         officers of the corporation with authority to execute this Lease on
         behalf of the corporation, and within fifteen (15) days of execution
         hereof, Lessee will provide Lessor with a corporate resolution
         confirming the aforesaid.

51.      INTENTIONALLY DELETED.

52.      LESSEE'S RELOCATION: The Lessor, in its sole discretion, shall have the
         right following receipt of a Renewal Notice to change the location of
         the Premises to other space (the "Substituted Leased Premises") within
         the Airport Business Center, subject Lessee's right to reject such
         relocation as provided in Section 2.f. above and to the terms and
         conditions set forth below.

                                       29

<PAGE>

         a.   The Substituted Leased Premises shall contain a minimum floor area
              of approximately the same number of square feet as are contained
              in the Premises; and the square footage of any Common Facilities
              attributable to the Substituted Leased Premises shall be
              approximately the same as that of the Common Facilities
              attributable to the Premises.

         b.   If the total square footage comprised by the Substituted Leased
              Premises and its attributable Common Facilities exceed the total
              of the Premises and its attributable Common Facilities, the Lessee
              shall not be required to pay any increase in the Fixed Basic Rent
              and Lessee's Percentage shall not be increased. If, however, such
              total square footage shall be less, Lessee's Fixed Basic Rent and
              Lessee's Percentage shall be decreased proportionately.

         c.   Lessee agrees that it shall relocate to the Substituted Leased
              Premises no later than the date designated by Lessor in Lessor's
              Notice, which date shall not be sooner than forty-five (45) days
              after the date of Lessor's Notice.

         d.   The Lessor shall bear and pay for the cost and expense of any such
              relocation; provided, however, that the Lessee shall not be
              entitled to any compensation for damages for any interference with
              or interruption of its business during or resulting from such
              relocation. The Lessor shall make reasonable efforts to minimize
              such interference.

         e.   In connection with any such relocation, the Lessor shall, at its
              own cost and expense, furnish and install in (or, if practicable,
              relocate to) the Substituted Leased Premises all walls,
              partitions, floors, floor coverings, ceilings, fixtures, wiring
              and plumbing, if any, (as distinguished from trade fixtures,
              equipment, furniture, furnishings and other personal property
              belonging to Lessee) required for the Lessee's proper use and
              occupancy thereof, all of which items shall be comparable in
              quality to those situated in the Premises.

         f.   The payments of new monthly minimum rent shall commence on the
              earlier of ten (10) days after Lessor has completed the physical
              relocation and installation of permanent improvements in the
              Substituted Leased Premises or the date that Lessee first opens
              for business in the Substituted Leased Premises.

         g.   Lessor and Lessee shall promptly execute an amendment to this
              Lease reciting the relocation of the Premises and any changes in
              the monthly minimum rent payable hereunder.

53.      BUILDING PERMIT: This Lease is expressly conditioned upon Lessor
         obtaining a building permit from the appropriate government official
         for Lessee's Premises. Lessor hereby agrees to make application to said
         government official within five (5) days following the execution of the
         construction drawings for the Premises. As used herein, construction
         drawings shall mean the final plans and specifications required
         pursuant to Article 27(b).

54.      INTENTIONALLY OMITTED.

55.      USE AND OCCUPANCY TAX AND MISCELLANEOUS TAXES: Lessee shall pay
         prior to delinquency all taxes (or its equivalent) assessed against or
         levied or imposed upon its use and occupancy of the Premises or upon
         the fixtures, furnishings, equipment and all other personal property of
         Lessee located in the Premises and when possible Lessee shall cause
         said fixtures, furnishings, equipment and all other personal property
         to be assessed and billed separately from the property of Lessor. In
         the event any or all of Lessee's fixtures, furnishings, equipment and
         all other personal property or its occupancy of the Premises shall be
         assessed and taxed with the property of Lessor, Lessee shall pay to
         Lessor its share of such taxes within twenty (20) days after delivery
         to Lessee by Lessor of a statement in writing setting forth the amount
         of such taxes applicable to Lessee's fixtures, furnishings, equipment,
         personal property or occupancy. If, during the Term of this Lease or
         any renewal or extension thereof, any tax is imposed upon the privilege
         of renting or occupying the Premises or upon the amount of rentals
         collected therefor, Lessee will pay each month, as Additional Rent, a
         sum equal to such tax or charge that is imposed for such month, but
         nothing herein shall be taken to require Lessee to pay any income,
         estate, inheritance or franchise tax imposed upon Lessor except to the
         extent required by Article 23 hereof. In

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<PAGE>

         addition, Lessee will pay as additional rent, all school district
         business use and occupancy tax applicable to Lessee and the Premises
         (if any) within the time set forth in any bill rendered by the taxing
         authority having such authority, or Lessor for said tax. Lessor shall
         have the same rights and remedies for the non-payment of such use and
         occupancy tax, or any other item hereunder, that it has upon Lessee's
         failure to pay rent hereunder.

56.      APPRAISAL, FAIR MARKET VALUE.

         a.   If Lessee, in good faith, determines that a Fair Market Rental
              Rate (as defined in Section 56.b below as determined by Lessor as
              otherwise provided in this Lease is not acceptable to Lessee,
              Lessee may invoke an appraisal procedure by written notice to
              Lessor within ten (10) days after Lessee's receipt of Lessor's
              determination of the Fair Market Rental Rate. If no such written
              notice is given by Lessee within such time, Lessee shall have no
              further right to appraisal and shall be obligated to pay the rate
              as determined by Lessor. Lessor and Lessee, within ten (10)
              business days after the appraisal procedure is invoked, shall each
              simultaneously submit to the other its good faith estimate of the
              Fair Market Rental Rate. If the higher of said estimate is not
              more than one hundred five percent (105%) of the lower of such
              estimates, the Fair Market Rental Rate in question shall be deemed
              to be the average of the submitted rates. If otherwise, then the
              dispute shall be settled by arbitration to be held in
              Philadelphia, Pennsylvania in accordance with the Real Estate
              Valuation Arbitration Rules of the American Arbitration
              Association, except that the arbitration shall be on the basis
              that the arbitrators will pick one of the two rates submitted,
              being the rate which is closer to the Fair Market Rental Rate as
              determined by the arbitrators using the definitions set forth in
              Section 56.b. The parties agree to be bound by the decision of the
              arbitrators and shall share equally the costs of arbitration, and
              judgment upon the award rendered by the arbitrators may be entered
              in any court having jurisdiction thereof.

         b.   The phrase "Fair Market Rental Rate" as used herein shall mean the
              fair market value annual rental rate for which Lessor, at or about
              the time that such fair market value rent rate is to be first set
              by Lessor, has entered into a lease or leases with other
              comparable tenants (excluding existing tenants with options to
              expand or renew at predetermined or fixed rental rates or pursuant
              to a definition of fair market value rental rate which is not
              comparable or equivalent to the definition of Fair Market Rental
              Rate set forth herein and also excluding existing tenants who take
              additional space without the benefit of an expansion option, but
              including new tenants without such options who, by subsequent
              agreement with Landlord, expand or renew their premises at a rent
              determined pursuant to a definition of fair market value rental
              rate which is comparable space in the Building or in the Airport
              Business Center (the "Project"), as the case may be, at the time
              that such Fair Market Value rental rate is first set by Lessor
              under the applicable provisions of this Lease, or would obtain
              from any prospective tenant for any general office use of such
              space, as such space is then improved. The Fair Market Rental Rate
              shall take into account the value of any rent or equivalent
              economic concessions (the "Concessions") then offered in
              connection with the leasing of such comparable space in the
              Building or the Project. The Fair Market Rental Rate shall also
              take into account that (i) a lessee may lease the Premises on an
              "as-is" basis without Lessor granting Concessions such as lessee
              improvement allowances; (ii) the Premises, in their then existing
              condition, may be partially suitable to a lessee, without the
              necessity of additional improvements or the granting of any
              concession such as lessee improvement allowances; (iii) the
              Premises, in their then existing condition, may exceed the quality
              of available space in the marketplace for the operation of
              Lessee's business, and (iv) the improvements in the Premises, in
              their then existing condition, may need to be demolished and
              rebuilt to be suitable for use by Lessee. For purposes of this
              Section 56.b on a renewal of the Term hereof, all of the Premise
              shall be deemed to be satisfactory to Lessee and suitable for the
              conduct of Lessee's business, except to the extent such space may
              need to be refurbished.

57.      RIGHT OF FIRST OFFER.

         a.   Upon any space on the second floor of the Building becoming
              available ("Available Space"), Lessor shall provide to Lessee
              notice thereof ("Availability Notice"). Space shall be "available"
              only to the extent it is not subject to expansion, extension,
              first

                                       31

<PAGE>

              offer, first refusal and any other rights of other tenants in the
              Building or Project. Lessee acknowledges that, among others,
              Keystone Mercy Health Plan has a right of first offer for any
              available space on the second floor of the Building. Provided that
              at least three (3) years remain on the initial Term of this Lease,
              and provided that Lessee is not in default with respect to this
              Lease, Lessee shall have a one-time first right to lease the
              Available Space (in its entirety), on the terms and conditions
              described in this Article 57 and otherwise consistent with this
              Lease, which is exercisable by written notice to Lessor within ten
              (10) business days after Lessee's receipt of the Availability
              Notice. Any such Available Space shall be leased to Lessee on an
              "as is" basis, for a term coterminous with the balance of the Term
              remaining on the Premises (or such shorter term as may be
              necessary to prevent any conflict with any other lessees' rights
              to such space) and at a rental rate equal to the Fair Market
              Rental Rate provided, however, Lessee's exercise of the first
              right described in this Article 57 shall be final with respect to
              the lease by Lessee of such Available Space, and Lessee hereby
              agrees that any dispute between Lessor and Lessee concerning the
              determination by Lessor of the rental rate for such Available
              Space shall be submitted to arbitration pursuant to Section 56.1.

         b.   In the event Lessee does not timely elect to lease the Available
              Space then Lessor may lease the Available Space and any further
              available space in the Building to any third party and Lessee
              shall have no right of first offer with respect thereto. Likewise,
              if Lessee timely elects to lease the Available Space, Lessee shall
              have no right of first offer to lease any subsequent available
              space in the Building.

         c.   As of the date that Lessor delivers actual possession to Lessee of
              the Available Space leased by Lessee, such Available Space shall
              become part of the Premises and, except as otherwise provided in
              this Article 57, shall be leased upon the same terms and
              conditions (other than as to Fixed Basic Rent, which will be
              governed by subsection (a) above and Section 56) and Additional
              Rent which shall increase in accordance with the increase in
              Lessee's Percentage.

         d.   The first right to lease the Available Space set forth in this
              Article 57 is personal to Lessee and may not be assigned,
              transferred or conveyed to any party, unless the Lease is assigned
              in its entirety in accordance with the terms hereof.

58.      ARBITRATION.

         a.   Whenever in this lease it is provided that a dispute shall be
              resolved by arbitration, the arbitration shall be conducted in
              Philadelphia, Pennsylvania, as provide din this Article 58. The
              party desiring such arbitration shall give written notice thereof
              to the other specifying the dispute to the arbitrated. Within
              twenty (20) days after the date on which the arbitration procedure
              is invoked as provided in this Lease, each party shall appoint an
              experienced arbitrator and notify the other party of the
              arbitrator's name and address. For purposes of this Article 58, an
              "experienced arbitrator" shall be an individual unrelated to any
              party hereto who possesses at least ten (10) years experience in
              the development, management or leasing of first class office space
              in complex real estate transactions in the Philadelphia
              metropolitan area, and who has at no time ever represented or
              acted on behalf of any of the parties. The party who selects the
              experienced arbitrator may not consult with such experienced
              arbitrator, directly or indirectly, to determine such experienced
              arbitrator's position on the issue which is the subject of the
              dispute. If the party fails to so appoint an experienced
              arbitrator and notify the other party of such arbitrator's name
              and address, an arbitrator shall be appointed pursuant to the same
              procedure that is followed when agreement cannot be reached as to
              the third arbitrator. Within ten (10) days after the appointment
              of the second experienced arbitrator and notice to the other part
              of such arbitrator's name and address, the two arbitrators so
              appointed shall notify both parties of the third arbitrator's name
              and address. If the three arbitrators to be so appointed are not
              appointed within thirty (30) days after the date the arbitration
              procedure is invoked as provided in this Lease, then the
              arbitrator or arbitrators, if any, who have been selected shall
              proceed to carry out the arbitration. The arbitrator or
              arbitrators so selected shall furnished Lessor and Lessee with a
              written decision within thirty (30) days after the date of
              selection of the last of the arbitrators to be so selected. Any
              decision so submitted shall be signed by a majority of the
              arbitrators,

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<PAGE>

              if more than two have been selected. If only two arbitrators have
              been selected and they are unable to agree, then either Lessor or
              Lessee shall be entitled to apply to the President Judge of the
              Court of Common Pleas of Delaware County, Pennsylvania for the
              selection of a third arbitration who shall be selected from a list
              of names of experienced arbitrators submitted by Lessor or from a
              list of names submitted by Lessee, as the case may be, unless both
              Lessor and Lessee submits lists of names, in which case the Court,
              in its sole discretion, shall select the third arbitrator from the
              lists. In the event of any subsequent vacancies or inabilities to
              perform among the arbitrators appointed, the arbitrator or
              arbitrators involved shall be replaced in accordance with the
              provisions of this Article 58 as if such replacement was an
              initial appointment to be made under this Article 58 within the
              time constraints set forth in this Article 58, measured from the
              date of notice of such vacancy or inability to the person or
              persons required to make such appointment, with all the attendant
              consequences of failure to act timely if such appointment person
              is the party hereto. In designating arbitrators and in deciding
              the dispute, the arbitrators shall utilize their utmost skill and
              act diligently in accordance with the Commercial Rules of
              Arbitration then in force of the American Arbitration Association,
              subject, however, to such limitations as may be placed upon them
              by the provisions of this lease.

         b.   The arbitrators appointed pursuant to this Article 58 shall (i)
              determine the Fair Market Rental Rate as provided in the Lease,
              and (ii) fix and establish any and all rules as it shall consider
              appropriate in their sole and absolute discretion to govern the
              proceedings before it, including any and all rules of discovery,
              procedure and/or evidence.

         c.   The decision of the arbitrators shall be final and bindings, may
              be confirmed and entered by any court of competent jurisdiction at
              the request of any party and may not be appealed to any court of
              competent jurisdiction or otherwise except upon a claim of fraud
              on the part of the arbitrators, or on the basis of a mistake as to
              the applicable law.

         d.   The obligations of Lessor and Lessee to submit a dispute to
              arbitration is limited to disputes arising under those articles of
              this Lease which specifically provide for arbitration. Neither
              party shall be in default hereunder with respect to any provision
              hereof during the time period commencing as of the initial notice
              of desire to arbitrate and ending on the date of resolution by the
              arbitrators; provided, however, that during said period each party
              shall continue to make all payments of money required by this
              Lease and shall otherwise perform all duties and obligations
              required to be performed by such party under this Lease and, with
              respect to the issue under arbitration, shall maintain the status
              quo.

         EACH PARTY AGREES that it will not raise or assert as a defense to any
obligation under the Lease or this Agreement or make any claim that the Lease or
this Agreement is invalid or unenforceable due to any failure of this document
to comply with ministerial requirements including, but not limited to,
requirements for corporate seals, attestations, witnesses, notarizations, or
other similar requirements, and each party hereby waives the right to assert any
such defense or make any claim of invalidity or unenforceability due to any of
the foregoing.

         THE UNDERSIGNED LESSEE ACKNOWLEDGES THAT IT FULLY UNDERSTANDS THE
CONFESSIONS OF JUDGMENT CONTAINED IN ARTICLE 14 HEREOF AND THAT THE
LESSOR-LESSEE RELATIONSHIP CREATED HEREBY IS COMMERCIAL IN NATURE AND THAT THE
UNDERSIGNED WAIVES ANY RIGHT TO A HEARING WHICH WOULD OTHERWISE BE A CONDITION
TO LESSOR'S OBTAINING THE JUDGMENTS AUTHORIZED BY ARTICLE 14.

         THE UNDERSIGNED LESSEE FURTHER ACKNOWLEDGES AND UNDERSTANDS THAT LESSEE
HAS WAIVED ITS RIGHT TO A TRIAL BY JURY.

         IN WITNESS WHEREOF, the parties hereto have hereunto set their hands
and seals the day and year first above written.

LESSOR:                                     LESSEE:

                                       33

<PAGE>

CALI AIRPORT REALTY                         BLUESTONE SOFTWARE, INC.
ASSOCIATES, L.P.

By: Mack-Cali Sub XVIII, Inc.,
    General Managing Partner

By: /s/ John Jay Crandall                  By: /s/ Craig Huke
   --------------------------------------     -----------------------
   John Jay Crandall                          Craig Huke
   Vice President, Leasing - NJ/PA Region     Chief Financial Officer

                                       34

<PAGE>

                                    EXHIBIT A

                              LOCATION OF PREMISES

        [Graphic, two pages; A not to scale aerial view of the premises]

                                       35

<PAGE>

                                   EXHIBIT A-2
                              OFFICE BUILDING AREA

PREMISES "3"

ALL THAT CERTAIN lot or piece of ground with the buildings and improvements
thereon erected, Situate in the Township of Tinicum, County of Delaware, State
of Pennsylvania, as shown on an ALTA/ACSM Land Title Survey Plan for Airport
Business Center (Lot 3 Parcel 2), prepared by Brandywine Valley Engineers, Inc.,
Consulting Engineers and Land Surveyors, dated November 18, 1996, last revised
December 16, 1996, and being bounded and described as follows:

BEGINNING at a point in the Northwesterly side of Governor Printz Boulevard
(westbound - L.R. 762) (S.R. 0291) (various widths) said point being measured
along same the following eight (8) courses and distances from a point of
intersection of said side of Governor Printz Boulevard (60 feet wide) with the
Northeasterly side of Fourth Avenue (60 feet wide): (1) along said side of
Governor Printz Boulevard North 63 degrees 19 minutes 37 seconds East 685.12
feet to a point; (2) North 26 degrees 40 minutes 23 seconds West 25.00 feet to a
point; (3) North 63 degrees 19 minutes 37 seconds East 124.98 feet to a point of
curvature; (4) along the arc of a circle curving to the right in a
Northeastwardly direction having a radius of 5784.58 feet an arc distance of
544.20 feet (chord North 66 degrees 01 minute 20 seconds East 544.00 feet) to a
point; (5) South 21 degrees 16 minutes 58 seconds East 5.00 feet to a point; (6)
along the arc of a circle curving to the right in a Northeastwardly direction
having a radius of 5779.58 feet an arc distance of 275.02 feet (chord North 70
degrees 04 minutes 50 seconds East 275.00 feet) to a point; (7) North 27 degrees
36 minutes 51 seconds West 25.26 feet to a point; (8) North 52 degrees 14
minutes 28 seconds East 81.37 feet to the point of beginning; thence from said
beginning point and along the Northeasterly side of Stevens Drive the following
two (2) courses and distances: (1) North 32 degrees 16 minutes 00 seconds West
41.25 feet to a point of curvature and (2) along the arc of a circle curving to
the left in a Northwestwardly direction having a radius of 175.00 feet an arc
distance of 198.53 feet (chord North 64 degrees 46 minutes 00 seconds West
188.05 feet) to a point of tangency; thence leaving the same North 22 degrees 44
minutes 00 seconds East 457.57 feet to a point in the southeasterly right of way
line for limited access for Interstate 95 (S.R. 0095); thence along said limited
access right of way the following three (3) courses and distances: (1) South 70
degrees 45 minutes 32 seconds East 481.67 feet to a point; (2) South 03 degrees
38 minutes 14 seconds West 40.01 feet to a point; (3) South 52 degrees 14
minutes 28 seconds West 552.65 feet to the first mentioned point and place of
beginning.

BEING Lot #3 on said Plan and containing an area of 4.0022 acres more or less.

BEING Folio No. 45-00-00504-03.

BEING commonly known as 300 Stevens Drive.

                                       36

<PAGE>

                                    EXHIBIT B

                              RULES AND REGULATIONS

1.       OBSTRUCTION OF PASSAGEWAYS: The sidewalks, entrance, passages, courts,
         elevators, vestibules, stairways, corridors and public parts of the
         Building shall not be obstructed or encumbered by Lessee or used by
         Lessee for any purpose other than ingress and egress. If the Premises
         are situated on the ground floor with direct access to the street, then
         Lessor shall, at Lessor's expense, keep the sidewalks and curbs
         directly in front of the Premises clean and free from ice, snow and
         refuse.

2.       WINDOWS: Windows in the Premises shall not be covered or obstructed by
         Lessee. No bottles, parcels or other articles shall be placed on the
         windowsills, in the halls, or in any other part of the Building other
         than the Premises. No article shall be thrown out of the doors or
         windows of the Premises.

3.       PROJECTIONS FROM BUILDING: No awnings, air-conditioning units, or other
         fixtures shall be attached to the outside walls or the window sills of
         the Building or otherwise affixed so as to project from the Building,
         without prior written consent of Lessor.

4.       SIGNS: No sign or lettering shall be affixed by Lessee to any part of
         the outside of the Premises, or any part of the inside of the Premises
         so as to be clearly visible from the outside of the Premises, without
         the prior written consent of Lessor. However, Lessee shall have the
         right to place its name on any door leading into the Premises the size,
         color and style thereof to be subject to the Lessor's approval. Lessee
         shall not have the right to have additional names placed on the
         Building directory without Lessor's prior written consent.

5.       FLOOR COVERING: Lessee shall not lay linoleum or other similar floor
         covering so that the same shall come in direct contact with the floor
         of the Premises. If linoleum or other similar floor covering is desired
         to be used, an interlining of builder's deadening felt shall first be
         fixed to the floor by a paste or other material that may easily be
         removed with water, the use of cement or other similar adhesive
         material being expressly prohibited.

6.       INTERFERENCE WITH OCCUPANTS OF BUILDING: Lessee shall not make, or
         permit to be made, any unseemly or disturbing noises or odors and shall
         not interfere with other tenants or those having business with them.
         Lessee will keep all mechanical apparatus in the Premises free of
         vibration and noise which may be transmitted beyond the limits of the
         Premises.

7.       LOCK KEYS: No additional locks or bolts of any kind shall be placed on
         any of the doors or windows by Lessee. Lessee shall, on the termination
         of Lessee's tenancy, deliver to Lessor all keys to any space within the
         Building either furnished to or otherwise procured by Lessee, and in
         the event of the loss of any keys furnished, Lessee shall pay to Lessor
         the cost thereof. Lessee, before closing and leaving the Premises,
         shall ensure that all windows are closed and entrance doors locked.
         Nothing in this Paragraph 7 shall be deemed to prohibit Lessee from
         installing a burglar alarm within the Premises, provided: (1) Lessee
         obtains Lessor's consent which will not be unreasonably withheld or
         delayed; (2) Lessee supplies Lessor with copies of the plans and
         specifications of the system; (3) such installation shall not damage
         the Building; and (4) all costs of installation shall be borne solely
         by Lessee.

8.       CONTRACTORS: No contract of any kind with any supplier of towels,
         water, toilet articles, waxing, rug shampooing, venetian blind washing,
         furniture polishing, lamp servicing, cleaning of electrical fixtures,
         removal of waste paper, rubbish, garbage, or other like service shall
         be entered into by Lessee, nor shall any machine of any kind be
         installed in the Building or the Office Building Area without the prior
         written consent of the Lessor. Lessee shall not employ any persons
         other than Lessor's janitors for the purpose of cleaning the Premises
         without prior written consent of Lessor. Lessor shall not be
         responsible to

                                       37

<PAGE>

         Lessee for any loss of property from the Premises however occurring, or
         for any damage to the effects of Lessee by such janitors or any of its
         employees, or by any other person or any other cause.

9.       PROHIBITED ON PREMISES: Lessee shall not conduct, or permit any other
         person to conduct, any auction upon the Premises, manufacture or store
         goods, wares or merchandise upon the Premises without the prior written
         approval of Lessor, except the storage of usual supplies and inventory
         to be used by Lessee in the conduct of his business, permit the
         Premises to be used for gambling, make any unusual noises in the
         Building, permit any musical instrument to be played on the Premises,
         permit any radio to be played, or television, recorded or wired music
         in such loud manner as to disturb or annoy other tenants, or permit any
         unusual odors to be produced on the Premises. Lessee shall not permit
         any portion of the Premises to be occupied as an office for a public
         stenographer or typewriter, or for the storage, manufacture, or sale of
         intoxicating beverages, narcotics, tobacco in any form or as a barber
         or manicure shop. Canvassing, soliciting and peddling in the Building
         and the Office Building Area are prohibited and Lessee shall cooperate
         to prevent the same. No bicycles, vehicles or animals (except personal
         assistance dogs) of any kind shall be brought into or kept in or about
         the Premises.

10.      PLUMBING, ELECTRIC AND TELEPHONE WORK: Plumbing facilities shall not be
         used for any purpose other than those for which they were constructed;
         and no sweepings, rubbish, ashes, newspaper or other substances of any
         kind shall be thrown into them. Waste and excessive or unusual amounts
         of electricity or water is prohibited. When electric wiring of any kind
         is introduced, it must be connected as directed by Lessor, and no
         stringing or cutting of wires will be allowed, except by prior written
         consent of Lessor, and shall be done by contractors approved by Lessor.
         The number and locations of telephones, telegraph instruments,
         electrical appliances, call boxes, etc. shall be subject to Lessor's
         approval.

11.      MOVEMENT OF FURNITURE, FREIGHT OR BULKY MATTER: The carrying in or out
         of freight, furniture or bulky matter of any description must take
         place during such hours as Lessor may from time to time reasonably
         determine and only after advance notice to the superintendent of the
         Building. The persons employed by Lessee for such work must be
         reasonably acceptable to the Lessor. Lessee may, subject to these
         provisions, move freight, furniture, bulky matter, and other material
         into or out of the Premises on Saturdays between the hours of 9:00 a.m.
         and 1:00 p.m., provided Lessee pays additional costs, if any, incurred
         by Lessor for elevator operators or security guards, and for any other
         expenses occasioned by such activity of Lessee. If, at least three (3)
         days prior to such activity, Lessor requests that Lessee deposit with
         Lessor, as security of Lessee's obligations to pay such additional
         costs, a sum of which Lessor reasonably estimates to be the amount of
         such additional cost, the Lessee shall deposit such sum with Lessor as
         security of such cost. There shall not be used in the Building or
         Premises, either by Lessee or by others in the delivery or receipt of
         merchandise, any hand trucks except those equipped with rubber tires
         and side guards, and no hand trucks will be allowed in the elevators
         without the consent of the superintendent of the Building.

12.      SAFES AND OTHER HEAVY EQUIPMENT: Lessor reserves the right to prescribe
         the weight and position of all safes and other heavy equipment so as to
         distribute properly the weight thereof and to prevent any unsafe
         condition from arising.

13.      ADVERTISING: Lessor shall have the right to prohibit any advertising by
         Lessee which in Lessor's reasonable opinion tends to impair the
         reputation of the Building or its desirability as a building for
         offices, and upon written notice from Lessor, Lessee shall refrain from
         or discontinue such advertising.

14.      NON-OBSERVANCE OR VIOLATION OF RULES BY OTHER TENANTS: Lessor shall not
         be responsible to Lessee for non-observance or violation of any of
         these rules and regulations by any other tenant.

                                       38

<PAGE>

15.      AFTER HOURS USE: Lessor reserves the right to exclude from the Building
         between the hours of 6:00 p.m. and 8:00 a.m. and at all hours on
         Saturdays, Sundays and Building Holidays, all persons who do not
         present a pass to the Building signed by the Lessee. Each Lessee shall
         be responsible for all persons for whom such a pass is issued and shall
         be liable to the Lessor for the acts of such persons.

16.      PARKING: Lessee and its employees shall park their cars only in those
         portions of the parking area designated by Lessor.

17.      RESERVATIONS: Lessor hereby reserves to itself any and all rights not
         granted to Lessee hereunder, including, but not limited to, the
         following rights which are reserved to Lessor for its purposes in
         operating the Building:

         a)   the exclusive right to the use of the name of the Building for all
              purposes, except that Lessee may use the name as its business
              address and for no other purposes; and

         b)   the right to change the name or address of the Building, without
              incurring any liability to Lessee for doing so; and

         c)   the right to install and maintain a sign on the exterior of the
              Building; and

         d)   the exclusive right to use or dispose of the use of the roof of
              the Building; and

         e)   the right to limit the space on the directory of the Building to
              be allotted to Lessee; and

         f)   the right to grant to anyone the right to conduct any particular
              business or undertaking in the Building.

18.      HEALTH: The Lessee shall be responsible for initiating, maintaining and
         supervising all health and safety precautions and/or programs required
         by Law in connection with the Lessee's use and occupancy of the
         Premises.

19.      HAZARDOUS MATERIALS: The Lessee shall not store, introduce or otherwise
         permit any material known to be hazardous within the Premises. Any
         material within the Premises which is determined to be hazardous shall
         be removed and properly disposed of by the Lessee at the Lessee's sole
         expense.

                                       39

<PAGE>

                                    EXHIBIT C

                                  LESSOR'S WORK

Workletter Agreement for office space on the 3rd floor, at 300 Stevens Drive,
Lester, Pennsylvania between Cali Airport Realty Associates, L.P., as Lessor,
and Bluestone Software, Inc., as Lessee.

                            Dated: October 29, 1999

<TABLE>
<CAPTION>

---------------------------------------------------------------------
  DIVISION   GLS       DESCRIPTION                          BUDGET
---------------------------------------------------------------------
<S>          <C>     <C>                                 <C>
     1.0     5510    General Requirements                $ 23,694.74
---------------------------------------------------------------------
     2.0     5524    Miscellaneous                         24,972.00
---------------------------------------------------------------------
     6.0     5561    Cabinets & Millwork                   13,630.00
---------------------------------------------------------------------
     8.1     5540    Doors  & Hardware                     42,600.00
---------------------------------------------------------------------
     8.4     5570    Aluminum, Glass & Glazing             19,360.00
---------------------------------------------------------------------
     9.3     5530    Partitions                            58,250.00
---------------------------------------------------------------------
     9.5     5542    Acoustical Ceilings                   11,575.00
---------------------------------------------------------------------
     9.7     5565    Painting and Vinyl Wall Covering      30,325.00
---------------------------------------------------------------------
     9.9     5564    Flooring & Carpet                     56,167.50
---------------------------------------------------------------------
    15.3     5574    Fire Suppression                      22,500.00
---------------------------------------------------------------------
    15.4     5532    Plumbing                              15,605.00
---------------------------------------------------------------------
    15.5     5535    HVAC                                  59,989.25
---------------------------------------------------------------------
    16.0     5533    Electrical                            79,855.00
---------------------------------------------------------------------
                       SUBTOTAL                          $458,523.49
                       10% OVERHEAD                        45,852.35
---------------------------------------------------------------------
                       SUBTOTAL                          $504,375.84
                       5% GENERAL CONDITIONS               25,218.79
---------------------------------------------------------------------
                       TOTAL                             $529,594.63
---------------------------------------------------------------------

</TABLE>

Rentable Area = 23,957 S.F.
Preliminary pricing & assumptions based on Test-Fit-1 Dated 8/17/99
and ADA letter dated 9/29/99

<TABLE>

---------------------------------------------------------------------
<S>          <C>     <C>                                 <C>
                       TOTAL COST                        $529,594.63
---------------------------------------------------------------------
             5799    LESS:  LESSOR'S ALLOWANCE           $479,140.00
                     $20.00 per rt. sq. ft.
                     $0.00 lot allowance
---------------------------------------------------------------------
                     NET COST TO BE PAID BY              $ 50,454.63
                     LESSEE PRIOR TO OCCUPANCY
---------------------------------------------------------------------

</TABLE>

AGREED AND ACCEPTED:

LESSEE:
BLUESTONE SOFTWARE, INC.

By: /s/ Craig Huke
   ----------------------
   CRAIG HUKE
   Chief Financial Officer

                                       40

<PAGE>

                                    EXHIBIT C

                                      NOTES

RE:      Workletter Agreement for office space on the 3rd floor at 300 Stevens
         Drive, Lester, Pennsylvania between Cali Airport Realty Associates,
         L.P. as Lessor and Bluestone Software, Inc., as Lessee.

You ("Lessee") and we ("Lessor") are executing simultaneously with this
Workletter Agreement a written lease ("Lease"), covering the space referred to
above, as more particularly described in the Lease ("Premises").

To induce Lessee to enter into the Lease (which is hereby incorporated by
reference) and in consideration of the covenants hereinafter contained, Lessor
and Lessee mutually agree as follows:

1a.      Lessor has heretofore delivered to Lessee for use by Lessee and/or its
         architect or engineer, such structural, electrical and mechanical
         drawings, specifications, and other information with respect to the
         Building ("Base Building Plans") reflecting Lessor's construction of
         the core and shell of the Building (the "Core and Shell"). Lessee
         acknowledges that the Core and Shell were constructed to construction
         industry standard tolerances permitting limited deviations from the
         requirements of the Base Building Plans. Lessee has or will cause its
         architect or engineer to conduct a field survey of the Premises to
         verify critical dimensions and ascertain any deviation from the Base
         Building Plans.

1b.      Lessee shall consult with its architect, engineer, designer and such
         other consultants (collectively, "Lessee's Architect") as it shall deem
         necessary for the development and timely completion of Construction
         Documents, as hereinafter defined, which shall conform to the Base
         Building Plans.

1c.      Subject to the procedural requirements set forth below in Subsection
         1.f., Lessee shall cause Lessee's Architect to prepare and design
         development documents consisting of architectural, mechanical,
         electrical, plumbing (if permitted) and structural drawing and other
         documents to fix and describe the interior size and character of the
         Premises (the "Construction Documents"). Lessee shall cause Lessee's
         Architect to prepare and deliver to Lessor prior to the execution of
         the lease one (1) complete reproducible set and a CAD disk(s)
         containing the Construction Documents.

1d.      Lessee's Construction Documents shall be signed and sealed by a
         reputable architect or professional engineer (where applicable)
         licensed and registered in the Commonwealth of Pennsylvania. In
         addition to conforming to Lessor's Base Building Plans, Lessee's
         Construction Documents shall also conform to all applicable laws,
         ordinances, building codes and requirements of public authorities and
         insurance underwriters. Lessee's Construction Documents shall contain,
         at a minimum, floor plans, reflected ceiling plans, power and telephone
         plans, mechanical plans, electrical plans, fire protection plans and
         all other details and schedules which designate the locations and
         specifications for all mechanical, electrical, fire protection and life
         safety equipment to be installed in the Premises, and all partitions,
         doors, lighting fixtures, electric receptacles and switches, telephone
         outlets, special air-conditioning, and other improvements to be
         installed within the Premises.

1e.      Lessee's Construction Documents, as approved by Lessor and as modified
         by Lessee to take account of any changes reasonably requested by
         Lessor, are hereinafter considered to be "Issued for Construction".

1f.      Lessee shall submit for Lessor's approval all Construction Documents.
         The approval by Lessor of Lessee's Construction Documents shall be
         subject to the following procedural requirements:

                                       41

<PAGE>

                        (1) Lessor shall review, within five (5) business days
after submission, the applicable documents or any additional requested
information, and either approve the same or return the same to Lessee with
requested modifications.

                        (2) If Lessor shall return the documents to Lessee with
requested modifications, Lessor shall specify a reasonable period of time, not
to exceed five (5) business days, within which such modifications shall be made
and within which such modified plans shall be resubmitted to Lessor by Lessee,
until the modified documents are finally approved by Lessor.

                        (3) To the extent the Tenant's Construction Documents,
in Lessor's sole judgment, involve any modification of, or impact upon, the
Building's structural, mechanical, electrical or plumbing systems or components,
then such approval may be withheld by Lessor in its absolute and sole
discretion.

2.       Following Lessor's receipt of Construction Documents Issued for
         Construction, upon Lessor's receipt from Lessee of an invoice
         evidencing the actual cost of Lessee's preparation of its Construction
         Documents, Lessor shall pay to Lessee's Architect the amount of such
         cost as reimbursement therefor provided, that the aggregate amount to
         be reimbursed by Lessor to Lessee for Lessee's cost to prepare such
         documents shall not exceed $13,176.35, and the Construction Allowance
         shall be reduced by every such reimbursement to Lessee.

3.       Lessor agrees to do the work in the Premises as preliminarily described
         on the "Description of Materials" schedule attached hereto and as shown
         on the plans dated August 17, 1999 and ADA letter dated September 29,
         1999, which shall hereinafter be referred to as "The Work". "Building
         Standard" shall mean the type and grade of material, equipment and/or
         device designated by Lessor as standard for the Building. All items are
         Building Standard unless otherwise noted. The provisions of Article 5
         of the Lease shall apply to any alterations made to the Premises after
         the initial work to be performed herein.

4.       Lessor has estimated the cost of The Work based upon the sketch plans
         and specifications submitted to Lessor by Lessee to be $529,689.27
         (23,957 RSF @ 22.11). This amount is an estimate only. Against such
         estimated cost, Lessor shall credit an allowance of $479,140 (23,957
         RSF @ $20 per RSF) (the "Construction Allowance") and the remaining
         balance, if any, shall be paid by Lessee prior to occupancy. The
         Construction Allowance may be used to pay the cost of The Work,
         preparing Construction Documents (as provided above), obtaining
         construction and occupancy permits, oversight and inspection fees of
         Lessor, Lessor's construction representative and governmental
         authorities, and fees of the general contractor. No part of the
         Construction Allowance may be used for any other purpose and may not be
         used to fund, pay for or offset any miscellaneous tenant expense or as
         a rent credit. Lessor shall obtain, and provide to Lessee, at least two
         bids from general contractors for The Work. Lessor agrees to request a
         bid for The Work from Interior Construction Plus, provided that
         Interior Construction Plus provides evidence to Lessor that it
         maintains insurance coverages and amounts in keeping with Lessor's
         standards.

5.       All low partitioning, work station modules, bankscreen partitions and
         prefabricated partition systems shall be furnished and installed by
         Lessee.

6.       The installation or wiring of telephone and computer (data) outlets is
         not part of The Work. Lessee shall bear the responsibility to provide
         its own telephone and data systems at Lessee's sole cost and expense.
         Upon expiration or sooner termination of the Lease, Lessee shall remove
         all telephone and data equipment and wiring from the Premises and the
         Building risers prior to vacation of same.

7.       Changes in The Work, if necessary or requested by the Lessee, shall be
         accomplished after the execution of the Lease and this Workletter
         Agreement, and without invalidating any part of the Lease or Workletter
         Agreement, by written agreement between Lessor and Lessee hereinafter
         referred to as a Change Order. Each Change Order shall be prepared by
         Lessor and signed by both Lessee and Lessor stating their agreement
         upon all of the following:

                                       42

<PAGE>

         a.   The scope of the change in The Work; and

         b.   The cost of the change; and

         c.   Manner in which the cost will be paid or credited; and

         d.   The estimated extent of any adjustment to the Commencement Date as
              a result of the change in The Work.

         Each and every Change Order shall be signed by Lessor's and Lessee's
         respective construction representatives. In no event shall any Change
         Order(s) be permitted without such authorizations. A 10% supervision
         plus 5% overhead charge will be added to the cost of any Change Order
         executed thirty (30) days or more after the date of the Lease. If
         Lessee shall fail to approve any such Change Order within one (1) week,
         the same shall be deemed disapproved in all respects by Lessee and
         Lessor shall not be authorized to proceed thereon. Any increase in the
         cost of The Work or the change in The Work stated in a Change Order
         which results from Lessee's failure to timely approve and return said
         Change Order shall be paid by the Lessee. Lessee agrees to pay to
         Lessor the cost of any Change Order promptly upon receipt of an invoice
         for same.

8.       If Lessee elects to use the architect suggested by Lessor, this
         architect becomes the Lessee's agent solely with respect to the plans,
         specifications and The Work. If any change is made prior to completion
         of schematic drawings and final construction documents which result in
         a Change Order and additional costs, such costs shall be the
         responsibility of the Lessee. Similarly, any cost savings resulting
         from such Change Order(s) shall be credited to the Lessee.

9.       Prior to Lessee's occupancy of the Premises, Lessee shall identify and
         list any portion of The Work which does not conform to this Workletter
         Agreement ("Punch List"). The Lessor shall review with the Lessee all
         of the items so listed and correct or complete any portion of The Work
         which fails to conform to the requirements of this Workletter
         Agreement.

10.      The terms contained in the Lease (which include all exhibits attached
         thereto) constitute Lessor's agreement with Lessee with respect to the
         work to be performed by Lessor on Lessee's behalf. If the architectural
         drawings are in conflict with the terms of the Lease, then the Lease
         shall be deemed the controlling document.

11.      All materials and installations constructed for the Lessee within the
         Premises shall become the property of the Lessor upon installation. No
         refund, credit or removal of said items is to be permitted at the
         termination of the Lease. Items installed that are not integrated in
         any such way with other common building materials do not fall under
         this provision (e.g. shelving, furniture, etc.).

12.      It is agreed that notwithstanding the date provided in the Lease for
         the Commencement Date, the term shall not commence until Lessor has
         "substantially completed" all work to be performed by Lessor as
         hereinbefore set forth in Paragraph 3 above and as set forth in the
         Lease; provided, however, that if Lessor shall be delayed in
         substantially completing said work as a result of:

         a.   Lessee's failure to provide Construction Documents in accordance
              with Paragraph 1 hereof; or

         b.   Lessee's failure to furnish interior finish specifications, i.e.,
              paint colors, carpet selection, etc., to Lessor by the fifth (5th)
              working day after Lessor has approved the Construction Documents
              submitted by Lessee referred to in Paragraph 1 hereof; or

         c.   Lessee's request for materials, finishes or installations other
              than Lessor's Building

                                       43

<PAGE>

              Standard; or

         d.   Lessee's changes in The Work; or

         e.   The performance of a person, firm, partnership or corporation
              employed by Lessee and the completion of the said work by said
              person, firm, partnership or corporation;

         then the Commencement Date of the term of said Lease shall be
         accelerated by the number of days of such delay and Lessee's obligation
         to pay Fixed Basic Rent and Additional Rent shall commence as of such
         earlier date.

13.      Lessor shall permit Lessee and its agents to enter the Premises prior
         to the Commencement Date in order that Lessee may perform through its
         own union contractors such other work and decorations as Lessee may
         desire at the same time Lessor's contractors are working in the
         Premises. The foregoing license to enter prior to the Commencement
         Date, however, is conditioned upon:

         a.   Lessee's workmen and mechanics working in harmony and not
              interfering with the labor employed by Lessor, Lessor's mechanics
              or contractors or by any other Lessee or its mechanics or
              contractors; and

         b.   Lessee providing Lessor with evidence of Lessee's contractors and
              subcontractors carrying such worker's compensation, general
              liability, personal and property insurance as required by law and
              in amounts no less than the amounts set forth in Article 30 of the
              Lease. If at any time such entry shall cause disharmony or
              interference therewith, this license may be withdrawn by Lessor
              upon forty-eight (48) hours written notice to Lessee. Such entry
              shall be deemed controlled by all of the terms, covenants,
              provisions and conditions of said Lease, except as to the covenant
              to pay Fixed Basic Rent and Additional Rent. Lessor shall not be
              liable in any way for any injury, loss or damage which may occur
              to any of Lessee's decorations or installations so made prior to
              the Commencement Date, the same being solely at Lessee's risk.

         a.   Lessee providing to Lessor for filing, an original Waiver of
              Mechanics' Liens fully executed by Lessee's general contractor in
              recordable form and otherwise in form satisfactory to Lessor.

         d.   Lessee providing to Lessor a copy of the written agreement between
              Lessee and its contractor containing a general waiver of liens by
              such contractor for itself and all subcontractors.

14.      No part of the Premises shall be deemed unavailable for occupancy by
         the Lessee, or shall any work which the Lessor is obligated to perform
         in such part of the Premises be deemed incomplete for the purpose of
         any adjustment of Fixed Basic Rent payable hereunder, solely due to the
         non-completion of details of construction, decoration or mechanical
         adjustments which are minor in character and the non-completion of
         which does not materially interfere with the Lessee's use of such part
         of the Premises.

15.      Lessee is responsible for all costs related to the repairs and
         maintenance of any additional or supplemental HVAC systems, appliances
         and equipment installed to meet Lessee's specific requirements. Lessee
         shall purchase a service contract for this equipment so that the
         equipment is covered by such service contract each year of the term of
         the Lease.

16.      If construction is to occur in a space occupied by Lessee's employees,
         Lessee shall be liable for all costs associated with a delay if Lessee
         shall fail to comply with a submitted construction schedule to relocate
         personnel, furniture, or equipment. These costs shall include, but not
         be limited to the following:

         a.   cost of construction workers time wasted; and

         b.   cost of any overtime work necessary to meet schedule deadlines;
              and

         c.   any other costs associated with delays in final completion.

17.      This workletter is based on the quantities and specifications listed
         herein. Any change to

                                       44

<PAGE>

         these specifications shall require the recalculation of the
         construction costs. Such recalculation shall not negate any other
         section of this Lease.

18.      With respect to the construction work being conducted in or about the
         Premises, each party agrees to be bound by the approval and actions of
         their respective construction representatives. Unless changed by
         written notification, the parties hereby designate the following
         individuals as their respective construction representatives:

FOR LESSOR:                                     FOR LESSEE:

c/o Mr. Tony DeCaro                             Ms. Mary Gatto
Mack-Cali Realty Corporation                    100 Briggs Road
11 Commerce Drive                               Mt. Laurel, New Jersey 08054
Cranford, New Jersey 07016

If the foregoing correctly sets forth our understanding, kindly sign this letter
agreement where indicated.

CALI AIRPORT REALTY                             BLUESTONE SOFTWARE, INC.,
ASSOCIATES, L.P., LESSOR                        LESSEE

By: Mack-Cali Sub XVIII, Inc.
    Managing General Partner

By: /s/ John Jay Crandall                       By: /s/ Craig Huke
   --------------------------------------          -----------------------
   John Jay Crandall                               Craig Huke
   Vice President, Leasing - NJ/PA Region          Chief Financial Officer

                                       45

<PAGE>

                                  EXHIBIT C - 1

                   AIR CONDITIONING & HEATING DESIGN STANDARDS

The following are design standards for the building air-conditioning system for
cooling and heating in the air in the subject building:

1.       During the normal heating season to maintain an average indoor dry bulb
         temperature of not less than 70 degrees F (21 degrees C) or more than
         76 degrees (24.4 degrees C) when the outdoor dry bulb temperature is
         lower than 65 degrees F (18 degrees C) but not lower than 0 degrees F
         (-13 degrees C).

2.       To maintain comfort cooling for an average indoor dry bulb temperature
         of not more than 78 degrees F when the outside dry bulb temperature is
         95 degrees F (24 degrees C).

3.       During the intermediate seasons, when the outside dry bulb temperature
         is below 55 degrees (13 degrees C), cooling will be provided by outside
         air usage in conjunction with operating of return air, outside air and
         exhaust air dampers.

4.       To furnish not less than .10 cubic foot of fresh air per minute per
         square foot of rentable area, and between .20 and 1.0 cubic feet of
         total air per minute, per square foot of rentable occupied space.

5.       Lessor will not be responsible for the failure of the air-conditioning
         system if such failure results from (i) the occupancy of the Premises
         with more than an average of one (1) person for each one hundred (100)
         usable square feet of floor area (ii) the installation or operation by
         Lessee of machines and appliances, the installed electrical load of
         which when combined with the load of all lighting fixtures exceeds five
         (5) watts per square foot of floor area and in any manner exceeding the
         aforementioned occupancy and electrical load criteria, or (iii)
         rearrangement of partitioning after the initial preparation of the
         Premises. If interference with normal operation of the air-conditioning
         system in the Premises results, necessitating changes in the air
         conditioning system servicing the Premises, such changes shall be made
         by Lessor upon written notice to Lessee at Lessees sole cost and
         expense. Lessee agrees to lower and close window coverings when
         necessary because of the suns position whenever the air conditioning
         system is in operation, and Lessee agrees at all times to cooperate
         fully with Lessor and to abide by all the Rules and Regulations
         attached hereto as well as reasonable rules and regulations which
         Lessor may hereafter prescribe involving the air-conditioning system.

                                       50

<PAGE>

                                    EXHIBIT D

                                CLEANING SERVICES
                             (Five Nights Per Week)

LESSEE'S PREMISES

1.       Vacuum clean all carpeted areas.

2.       Sweep and dust mop all non-carpeted areas. Wet mop whenever necessary.

3.       All office furniture such as desks, chairs, files, filing cabinets,
         etc. shall be dusted with a clean treated dust cloth whenever necessary
         and only if such surfaces are clear of Lessee's personal property
         including but not limited to plants.

4.       Empty and wash ashtrays.

5.       Empty wastepaper baskets and remove waste to the designated areas.

6.       All vertical surfaces within arms reach shall be spot cleaned to remove
         finger marks and smudges. Baseboard and window sills are to be spot
         cleaned whenever necessary.

7.       All cleaning of cafeterias, vending areas, kitchen facilities are
         excluded. Lessee may make necessary arrangements for same directly with
         Lessor's cleaning maintenance company.

8.       Cleaning hours shall be Monday through Friday between 5:30 p.m. and
         11:00 p.m.

9.       No cleaning service is provided on Saturday, Sunday and Building
         Holidays.

10.      Cartons or refuse in excess which can not be placed in wastebaskets
         will not be removed. Lessee is responsible to place such unusual refuse
         in trash dumpster.

11.      Cleaning maintenance company will not remove nor clean tea, office cups
         or similar containers. If such liquids are spilled in waste baskets,
         the waste baskets will be emptied but not otherwise cleaned. Lessor
         will not be responsible for any stained carpet caused from liquids
         leaking or spilling from Lessee's wastepaper receptacles.

12.      Upon completion of cleaning, all lights will be turned off and doors
         locked leaving the Premises in an orderly condition.

13.      Glass entrance doors will be cleaned nightly. Interior glass doors or
         glass partitions are excluded. Lessee may make arrangements for same
         with Lessor's cleaning maintenance company.

COMMON AREAS

1.       Vacuum all carpeting in entrance lobbies, outdoor mats and all
         corridors.

2.       Wash glass doors in entrance lobby with a clean damp cloth and dry
         towel.

3.       Clean cigarette urns. Sweep and/or wet mop all resilient tile flooring.
         Hard surface floors such as quarry tile, etc., shall be cleaned
         nightly.

4.       Wash, clean and disinfect water fountains.

5.       Clean all elevators and stairwells.

6.       Lavatories -- Men and Women.

         a.   Floors in all lavatories shall be wet mopped each evening with a
              germicidal detergent to ensure a clean and germ free surface.

         b.   Wash and polish all mirrors, shelves, bright work including any
              piping and toilet seats. c. Wash and disinfect wash basins and
              sinks using a germicidal detergent.

         d.   Wash and disinfect toilet bowls and urinals.

                                       51

<PAGE>

         e.   Keep lavatory partitions, tiled walls, dispensers and receptacles
              in a clean condition using a germicidal detergent when necessary.

         f.   Empty and sanitize sanitary disposal receptacles.

         g.   Fill toilet tissue holders, towel dispensers and soap dispensers.
              Refills to be supplied by Lessor.

7.       Clean all air ventilation grill work in ceilings.

                                       52

<PAGE>

                                    EXHIBIT E

                                BUILDING HOLIDAYS

                                 BUILDING CLOSED

                               * NEW YEAR'S DAY *

                                * MEMORIAL DAY *

                              * INDEPENDENCE DAY *

                                  * LABOR DAY *

                              * THANKSGIVING DAY *

                                * CHRISTMAS DAY *

                                       53

<PAGE>

                                    EXHIBIT F

                           TENANT ESTOPPEL CERTIFICATE

TO:  MORTGAGEE and/or its affiliates and/or whom else it may concern:

1.       The undersigned is the Lessee (Tenant) under that certain Lease dated
         by and between CALI AIRPORT REALTY ASSOCIATES, L.P. as Lessor
         (Landlord) and BLUESTONE SOFTWARE, INC., as Lessee, covering those
         certain premises commonly known and designated as 23,957 r.s.f. on the
         third (3) floor of 300 Stevens Drive, Lester, PA.

2.       The Lease has not been modified, changed, altered or amended in any
         respect (except as indicated following this sentence) and is the only
         Lease or agreement between the undersigned and the Lessor affecting
         said premises. If none, state "none".

3.       The undersigned has made no agreements with Lessor or its agents or
         employees concerning free rent, partial rent, rebate of rental payments
         or any other type of rental concession (except as indicated following
         this sentence). If none, state "none".

4.       The undersigned has accepted and now occupies the premises, and is and
         has been open for business since , l99_. The Lease term began , 199_,
         and the rent for said premises has been paid to and including , 199_ in
         conformity with this Lease agreement. No rent has been prepaid for more
         than two (2) months. The fixed minimum rent being paid as above is $
         __________ per month. If Lessee is not in full possession, whether
         Lessee has assigned the Lease, sublet all or any portion of the
         Premises, or otherwise transferred any interest in the Lease or the
         Premises, Lessee agrees to provide a copy of such assignment, sublease,
         or transfer upon request.

5.       The Lease is not in default and is in full force and effect. As of the
         date hereof, the undersigned is entitled to no credit, no free rent and
         no offset or deduction in rent.

6.       All alterations, improvements, additions, build-outs, or construction
         required to be performed under the Lease have been completed in
         accordance with the terms of the Workletter attached to Lease as
         Exhibit C.

7.       The Lease does not contain and the undersigned doesn't have any
         outstanding options or rights of first refusal to purchase the premises
         or any part thereof or the real property of which the premises are a
         part.

8.       No actions, whether voluntary or otherwise, are pending against the
         undersigned under the bankruptcy laws of the United States or any State
         thereof.

9.       There are currently no valid defenses, counterclaims, off-sets,
         credits, deductions in rent, or claims against the enforcement of any
         of the agreements, terms, or conditions of the Lease.

10.      The undersigned acknowledges that all the interest of Lessor in and to
         the above-mentioned Lease is being duly assigned to MORTGAGEE or one of
         its affiliates hereunder and that pursuant to the terms thereof (i) all
         rental payments under said Lease shall continue to be paid to Lessor in
         accordance with the terms of the Lease unless and until you are
         otherwise notified in writing by MORTGAGEE, or its successor or assigns
         and (ii) no modification, revision, or cancellation of the Lease or
         amendments thereto shall be effective unless a written consent thereto
         of such mortgagee is first obtained.

11.      The undersigned is authorized to execute this Tenant Estoppel
         Certificate on behalf of the Lessee.

Dated this ________ day of __________________ , 199__

BLUESTONE SOFTWARE, INC.,

LESSEE

-----------------------------
Name:
Title:

                                       54

<PAGE>

                                    EXHIBIT G

                           COMMENCEMENT DATE AGREEMENT

1.       PARTIES

         1.1  THIS AGREEMENT made the _________day of ________, 199__ is by and
              between CALI AIRPORT REALTY ASSOCIATES, L.P. ("Lessor") whose
              address is c/o Mack-Cali Realty Corporation, 11 Commerce Drive,
              Cranford, New Jersey 07016 and BLUESTONE SOFTWARE, INC. ("Lessee")
              whose address is 300 Stevens Drive, Lester, Pennsylvania.

2.       STATEMENT OF FACTS

         2.1  Lessor and Lessee entered into a Lease dated October __, 1999
              ("Lease") setting forth the terms of occupancy by Lessee of
              approximately 23,957 gross rentable square feet on the third (3rd)
              floor ("Premises") at 300 Stevens Drive, Lester, PA ("Building");
              and

         2.2  The Term of the Lease is for seven years and six months with the
              Commencement Date of the initial Term being defined in the
              Preamble to the Lease as being subject to change under Articles 27
              and 43 thereof; and

         2.3  It has been determined in accordance with the provisions of
              Articles 27 and 43 of the Lease that ___________, 1999 is the
              Commencement Date of the Term of the Lease.

3.       AGREEMENT

              NOW, THEREFORE, in consideration of the Premises and the covenants
hereinafter set forth, Lessor and Lessee agree as follows:

         3.1  The Commencement Date of the Term of the Lease is ___________ ,
              1999 and the Expiration Date thereof is _____________ , 2000 and
              Articles 6 and 9 of the Preamble to the Lease shall be deemed
              amended accordingly.

         3.2  Article 10 of the Preamble to the Lease shall be deemed amended as
              follows:

         3.3  This Agreement is executed by the parties hereto for the purpose
              of providing a record of the Commencement and Expiration Dates of
              the Lease, adjust the Term of the Lease and Fixed Basic Rent
              amount accordingly.

         EXCEPT AS EXPRESSLY AMENDED HEREIN, the Lease covering the Premises
shall remain in full force and effect as if the same were set forth in full
herein and Lessor and Lessee hereby ratify and confirm all the terms and
conditions thereof.

         THIS AGREEMENT shall be binding upon and inure to the benefit of the
parties hereto and their respective legal representatives, successors and
permitted assigns.

         EACH PARTY AGREES that it will not raise or assert as a defense to any
obligation under the Lease or this Agreement or make any claim that the Lease or
this Agreement is invalid or unenforceable due to any failure of this document
to comply with ministerial requirements including, but not limited to,
requirements for corporate seals, attestations, witnesses, notarizations, or
other similar requirements, and each party hereby waives the right to assert any
such defense or make any claim of invalidity or unenforceability due to any of
the foregoing.

                                       55

<PAGE>

         IN WITNESS THEREOF, Lessor and Lessee have hereunto set their hands and
seals the date and year first above written and acknowledge one to the other
they possess the requisite authority to enter into this transaction and to sign
this Agreement.

CALI AIRPORT REALTY                         BLUESTONE SOFTWARE, INC.,
ASSOCIATES, L.P., LESSOR                    LESSEE

By:  Mack-Cali Sub XVIII, Inc.,
     Managing General Partner

By:                                         By:
   -------------------------------------       ------------------------
   John J. Crandall,                           Name:
   Vice President-Leasing, PA/NJ Region        Title:

                                       56

<PAGE>

                                    EXHIBIT H

                              LETTER OF CREDIT FORM

                                                        Bank:
                                                             -------------------
                                                        Date:
                                                             -------------------

c/o Mack-Cali Realty Corporation
11 Commerce Drive
Cranford, New Jersey 07016

RE:  Irrevocable, Clean Letter of Credit No.
                                            ------------------------------------

Gentlemen:

At the request of ____________________________ (herein the "Company") we, as
drawee, hereby establish our Irrevocable Letter of Credit No.
_______________________ in your favor and authorize you to draw on us up to an
aggregate sum of ___________________________, available by your drafts at sight
as of ___________________.

All drafts must be presented at our office at our close of business not later
than ___________________, together with a statement signed by a duly authorized
representative of ___________________, (or duly authorized designee of any
subsequent holder of this credit) (herein the "Beneficiary") certifying that the
Beneficiary is entitled to draw such draft pursuant to a Lease Agreement between
it and the Company dated ________________________. Reference in this credit to a
Lease Agreement dated __________________ is for identification purposes only,
and the terms and conditions of same are not incorporated in nor made part of
this credit. We hereby engage with you (and any subsequent holder of this
credit) that we shall accept said statement as binding, correct and conclusive
without verification or investigation as to the accuracy, veracity, correctness,
genuineness or validity of the same.

If this credit is not renewed on or before the last date for presentation of
drafts for an additional period not less than twelve (12) months on an ongoing
basis throughout the term of the Lease Agreement, the amount of this credit
shall be paid to the Beneficiary upon demand, notwithstanding that such demand
may be made up to thirty (30) days after the last date for presentation of
drafts.

Should the Beneficiary not make demand for payment within the specified period,
then the Letter of Credit shall be automatically renewed for an additional
twelve (12) month period for each succeeding year until
___________________________ or thirty (30) days after the expiration or sooner
termination of the aforesaid Lease Agreement, whichever occurs later.

No charges are payable by the Beneficiary. All charges are for the account of
the Company.

We hereby engage with the drawers, endorsers and bona fide holders of all drafts
drawn under and in compliance with the terms of this Letter of Credit that such
drafts will be duly honored upon presentation to the drawee.

This Letter of Credit is subject to the "Uniform Customs and Practice for
Documentary Credits" _________________________. International Chamber of
Commerce Brochure, No.___________________.

Address all drafts, documents and correspondence regarding this Letter of Credit
to ___________________ at the above address, mentioning specifically our Letter
of Credit No.__________________.

                                  Very truly yours,

                                       57

<PAGE>

                                   SCHEDULE 1

                            FIXED BASIC RENT PAYMENTS

<TABLE>
<CAPTION>

--------------------------------------------------------------------------------
        TERM YEAR                   YEARLY RATE               MONTHLY RATE
--------------------------------------------------------------------------------
<S>                                 <C>                      <C>
1/1/2000 through 12/31/2000         $485,398.00               For January 1
                                                              through May 31,
                                                              2000 - $30,000
                                                             for June 1 through
                                                               December 31,
                                                               2000 - $47,914
--------------------------------------------------------------------------------
1/1/2001 through 12/31/2001         $586,946.50                  $48,912.21
--------------------------------------------------------------------------------
1/1/2002 through 12/31/2002         $598,925.00                  $49,910.42
--------------------------------------------------------------------------------
1/1/2003 through 12/31/2003         $610,903.50                  $50,908.63
--------------------------------------------------------------------------------
1/1/2004 through 12/31/2004         $622,882.00                  $51,906.83
--------------------------------------------------------------------------------
1/1/2005 through 12/31/2005         $634,860.50                  $52,905.04
--------------------------------------------------------------------------------
1/1/2006 through 12/31/2006         $646,839.00                  $53,903.25
--------------------------------------------------------------------------------
1/1/2007 through 6/30/2007          $329,408.75 (6 months)       $54,901.46
--------------------------------------------------------------------------------
                                    Total:  $4,516,163.25
--------------------------------------------------------------------------------

</TABLE>

CALI AIRPORT REALTY                         BLUESTONE SOFTWARE, INC.
ASSOCIATES, L.P.

By: Mack-Cali Sub XVIII, Inc.,
    Managing General Partner

By:                                         By:
   --------------------------------           -------------------------
    James G. Nugent                             Craig Huke
    Senior Vice President - Leasing             Chief Financial Officer

                                       58

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