Document:

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                                                                     Exhibit 4.3

                                                                  EXECUTION COPY

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                          REGISTRATION RIGHTS AGREEMENT

                           DATED AS OF AUGUST 20, 2003
                                  BY AND AMONG

                         HAIGHTS CROSS OPERATING COMPANY

                   THE GUARANTORS LISTED ON SCHEDULE I HERETO

                                       AND

                            BEAR, STEARNS & CO. INC.

                            BNY CAPITAL MARKETS, INC.

                            JEFFERIES & COMPANY, INC.

                                       AND

                      LANE, BERRY & CO. INTERNATIONAL, LLC

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         This Registration Rights Agreement (this "AGREEMENT") is made and
entered into as of August 20, 2003, by and among Haights Cross Operating
Company, a Delaware corporation (the "COMPANY"), the guarantors listed on
Schedule I hereto (the "GUARANTORS") and Bear, Stearns & Co. Inc., BNY Capital
Markets, Inc. and Jefferies & Company, Inc. (each an "INITIAL PURCHASER" and,
collectively, the "INITIAL PURCHASERS") and Lane, Berry & Co. International, LLC
(the "AGENT"), each of whom has agreed to, in the case of the Initial
Purchasers, purchase and, in the case of the Agent, place, the Company's 11 3/4%
Senior Notes due 2011 (the "INITIAL NOTES") pursuant to the Purchase Agreement
(as defined below).

         This Agreement is made pursuant to the Purchase Agreement, dated August
7, 2003 (the "PURCHASE AGREEMENT"), by and among the Company, the Guarantors and
the Initial Purchasers and the Agent. In order to induce the Initial Purchasers
to purchase the Initial Notes and to induce the Agent to use its best efforts to
act, to the extent required by the Company, as the Company's agent in private
placement transactions, the Company has agreed to provide the registration
rights set forth in this Agreement. The execution and delivery of this Agreement
is a condition to the obligations of the Initial Purchasers and the Agent set
forth in Section 8 of the Purchase Agreement. Capitalized terms used herein and
not otherwise defined shall have the meanings assigned to them the Indenture,
dated as of August 20, 2003, among the Company, the Guarantors and Wells Fargo
Bank Minnesota, N.A.,as trustee, relating to the Initial Notes and the Exchange
Notes (the "INDENTURE").

         The parties hereby agree as follows:

SECTION 1.        DEFINITIONS

         As used in this Agreement, the following capitalized terms shall have
the following meanings:

         ACT: The Securities Act of 1933, as amended.

         AFFILIATE: As defined in Rule 144 of the Act.

         BROKER-DEALER: Any broker or dealer registered under the Exchange Act.

         CLOSING DATE: The date hereof.

         COMMISSION: The Securities and Exchange Commission.

         CONSUMMATE: An Exchange Offer shall be deemed "Consummated" for
purposes of this Agreement upon the occurrence of (a) the filing and
effectiveness under the Act of the Exchange Offer Registration Statement
relating to the Exchange Notes to be issued in the Exchange Offer, (b) the
maintenance of the continuous effectiveness of such Exchange Offer Registration
Statement and the keeping of the Exchange Offer open for a period not less than
the period required pursuant to Section 3(b) hereof and (c) the delivery by the
Company to the Registrar under the Indenture of Exchange Notes in the same
aggregate principal amount as the aggregate principal amount of Initial Notes
tendered by Holders thereof pursuant to the Exchange Offer.

         CONSUMMATION DEADLINE: As defined in Section 3(b) hereof.

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         EFFECTIVENESS DEADLINE: As defined in Sections 3(a) and 4(a) hereof.

         EXCHANGE ACT: The Securities Exchange Act of 1934, as amended.

         EXCHANGE NOTES: The Company's 11 3/4%  Senior Notes due 2011 to be
issued pursuant to the Indenture: (i) in the Exchange Offer or (ii) as
contemplated by Section 4 hereof.

         EXCHANGE OFFER: The exchange and issuance by the Company of a
principal amount of Exchange Notes (which shall be registered pursuant to the
Exchange Offer Registration Statement) equal to the outstanding principal amount
of Initial Notes that are tendered by such Holders in connection with such
exchange and issuance.

         EXCHANGE OFFER REGISTRATION STATEMENT: The Registration Statement
relating to the Exchange Offer, including the related Prospectus.

         FILING DEADLINE: As defined in Sections 3(a) and 4(a) hereof.

         HOLDERS: As defined in Section 2 hereof.

         PROSPECTUS: The prospectus included in a Registration Statement at the
time such Registration Statement is declared effective, as amended or
supplemented by any prospectus supplement and by all other amendments thereto,
including post-effective amendments, and all material incorporated by reference
into such Prospectus.

         RECOMMENCEMENT DATE: As defined in Section 6(d) hereof.

         REGISTRATION DEFAULT: As defined in Section 5 hereof.

         REGISTRATION STATEMENT: Any registration statement of the Company and
the Guarantors relating to (a) an offering of Exchange Notes pursuant to an
Exchange Offer or (b) the registration for resale of Transfer Restricted
Securities pursuant to the Shelf Registration Statement, in each case, (i) that
is filed pursuant to the provisions of this Agreement, (ii) including the
Prospectus included therein, and (iii) including all amendments and supplements
thereto (including post-effective amendments) and all exhibits and material
incorporated by reference therein.

         RULE 144: Rule 144 promulgated under the Act.

         SHELF REGISTRATION STATEMENT: As defined in Section 4 hereof.

         SUSPENSION NOTICE: As defined in Section 6(d) hereof.

         TIA: The Trust Indenture Act of 1939 (15 U.S.C. Section 77aaa-77bbbb)
as in effect on the date of the Indenture.

         TRANSFER RESTRICTED SECURITIES: Each Initial Note until the earliest
to occur of (a) the date on which such Initial Note has been exchanged in the
Exchange Offer by a Person other than a Broker-Dealer for an Exchange Note
entitled to be resold to the public by the Holder

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thereof without complying with the prospectus delivery requirements of the Act,
(b) following the exchange by a Broker-Dealer in the Exchange Offer of an
Initial Note for an Exchange Note, the date on which such Exchange Note is sold
to a purchaser who receives from such Broker-Dealer on or prior to the date of
such sale a copy of the Prospectus contained in the Exchange Offer Registration
Statement, (c) the date on which such Initial Note has been effectively
registered under the Act and disposed of in accordance with the Shelf
Registration Statement (and the purchasers thereof have been issued Exchange
Notes) or (d) the date on which such Initial Note is distributed to the public
pursuant to Rule 144.

SECTION 2.        HOLDERS

         A Person is deemed to be a holder of Transfer Restricted Securities
(each, a "HOLDER") whenever such Person owns Transfer Restricted Securities.

SECTION 3.        REGISTERED EXCHANGE OFFER

         (a)      Unless the Exchange Offer shall not be permitted by applicable
law or Commission policy (after the procedures set forth in Section 6(a)(i)
below have been complied with), the Company and the Guarantors shall (i) cause
the Exchange Offer Registration Statement to be filed with the Commission no
later than 90 days after the Closing Date (such 90th day being the "FILING
DEADLINE"), (ii) use all commercially reasonable efforts to cause such Exchange
Offer Registration Statement to become effective no later than 180 days after
the Closing Date (such 180th day being the "EFFECTIVENESS DEADLINE"), (iii) in
connection with the foregoing, (A) file all pre-effective amendments to such
Exchange Offer Registration Statement as may be necessary in order to cause it
to become effective, (B) file, if applicable, a post-effective amendment to
such Exchange Offer Registration Statement pursuant to Rule 430A under the Act
and (C) cause all necessary filings, if any, in connection with the registration
and qualification of the Exchange Notes to be made under the Blue Sky laws of
such jurisdictions as are necessary to permit Consummation of the Exchange
Offer, and (iv) upon the effectiveness of such Exchange Offer Registration
Statement, commence and Consummate the Exchange Offer. The Exchange Offer shall
be on the appropriate form permitting (i) registration of the Exchange Notes to
be offered in exchange for the Initial Notes that are Transfer Restricted
Securities and (ii) resales of Exchange Notes by Broker-Dealers that tendered
into the Exchange Offer Initial Notes that such Broker-Dealer acquired for its
own account as a result of market-making activities or other trading activities
(other than Initial Notes acquired directly from the Company or any of its
Affiliates) as contemplated by Section 3(c) below.

         (b)      The Company and the Guarantors shall use all commercially
reasonable efforts to cause the Exchange Offer Registration Statement to be
effective continuously, and shall keep the Exchange Offer open for a period of
not less than the minimum period required under applicable federal and state
securities laws to Consummate the Exchange Offer; provided, however, that in no
event shall such period be less than 20 Business Days. The Company and the
Guarantors shall cause the Exchange Offer to comply with all applicable federal
and state securities laws. No securities other than the Exchange Notes shall be
included in the Exchange Offer Registration Statement. The Company and the
Guarantors shall use all commercially reasonable efforts to cause the Exchange
Offer to be Consummated no later than 30 Business Days after the

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date on which the Exchange Offer Registration Statement has become effective
(such 30th day being the "CONSUMMATION DEADLINE").

         (c)      The Company shall include a "Plan of Distribution" section in
the Prospectus contained in the Exchange Offer Registration Statement and
indicate therein that any Broker-Dealer who holds Transfer Restricted
Securities that were acquired for the account of such Broker-Dealer as a result
of market-making activities or other trading activities (other than Initial
Notes acquired directly from the Company or any Affiliate of the Company), may
exchange such Transfer Restricted Securities pursuant to the Exchange Offer.
Such "Plan of Distribution" section shall also contain all other information
with respect to such sales by such Broker-Dealers that the Commission may
require in order to permit such sales pursuant thereto, but such "Plan of
Distribution" shall not name any such Broker-Dealer or disclose the amount of
Transfer Restricted Securities held by any such Broker-Dealer, except to the
extent required by the Commission as a result of a change in policy, rules or
regulations after the date of this Agreement. See the Shearman & Sterling
no-action letter (available July 2, 1993).

         Because such Broker-Dealer may be deemed to be an "underwriter" within
the meaning of the Act and must, therefore, deliver a prospectus meeting the
requirements of the Act in connection with its initial sale of any Exchange
Notes received by such Broker-Dealer in the Exchange Offer, the Company and
Guarantors shall permit the use of the Prospectus contained in the Exchange
Offer Registration Statement by such Broker-Dealer to satisfy such prospectus
delivery requirement. To the extent necessary to ensure that the Prospectus
contained in the Exchange Offer Registration Statement is available for sales of
Exchange Notes by Broker-Dealers, the Company and the Guarantors agree to use
all commercially reasonable efforts to keep the Exchange Offer Registration
Statement continuously effective, supplemented, amended and current as required
by and subject to the provisions of Sections 6(a) and (c) hereof and in
conformity with the requirements of this Agreement, the Act and the policies,
rules and regulations of the Commission as announced from time to time, for a
period of 180 days from the Consummation Deadline or such shorter period as will
terminate when all Transfer Restricted Securities covered by such Registration
Statement have been sold pursuant thereto. The Company and the Guarantors shall
provide sufficient copies of the latest version of such Prospectus to such
Broker-Dealers, promptly upon request, and in no event later than one day after
such request, at any time during such period.

SECTION 4.        SHELF REGISTRATION

         (a)      Shelf Registration. If (i) the Company and the Guarantors are
not (A) required to file the Exchange Offer Registration Statement or (B)
permitted to Consummate the Exchange Offer because the Exchange Offer is not
permitted by applicable law or Commission policy (after the Company and the
Guarantors have complied with the procedures set forth in Section 6(a)(i) below)
or (ii) any Holder of Transfer Restricted Securities shall notify the Company
prior to 20 Business Days following Consummation of the Exchange Offer that (A)
such Holder was prohibited by law or Commission policy from participating in the
Exchange Offer, (B) such Holder may not resell the Exchange Notes acquired by it
in the Exchange Offer to the public without delivering a prospectus and the
Prospectus contained in the Exchange Offer Registration Statement is not
appropriate or available for such resales by such Holder or (C) such Holder is a

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Broker-Dealer and holds Initial Notes acquired directly from the Company or any
of its Affiliates, then the Company and the Guarantors shall:

     (x) use all commercially reasonable efforts on or prior to the later of (i)
the Filing Date for the Exchange Offer Registration Statement and (ii) 30 days
after the earlier of (A) the date as of which the Company determines that the
Exchange Offer Registration Statement will not be or cannot be, as the case may
be, filed as a result of clause (a)(i) above and (B) the date on which the
Company receives the notice specified in clause (a)(ii) above (such later date,
the "FILING DEADLINE"), to file a shelf registration statement pursuant to Rule
415 under the Act (which may be an amendment to the Exchange Offer Registration
Statement (the "SHELF REGISTRATION STATEMENT")), relating to all Transfer
Restricted Securities, and

     (y) shall use all commercially reasonable efforts to cause such Shelf
Registration Statement to become effective on or prior to 60 days after the
Filing Deadline for the Shelf Registration Statement (such 60th day the
"EFFECTIVENESS DEADLINE").

         If, after the Company and the Guarantors have filed an Exchange Offer
Registration Statement that satisfies the requirements of Section 3(a) above,
the Company and the Guarantors are required to file and make effective a Shelf
Registration Statement solely because the Exchange Offer is not permitted under
applicable federal law (i.e.,clause (a)(i)(B) above), then the filing of the
Exchange Offer Registration Statement shall be deemed to satisfy the
requirements of clause (x) above; provided that, in such event, the Company and
the Guarantors shall remain obligated to meet the Effectiveness Deadline set
forth in clause (y).

         To the extent necessary to ensure that the Shelf Registration Statement
is available for sales of Transfer Restricted Securities by the Holders thereof
entitled to the benefit of this Section 4(a) and the other securities required
to be registered therein pursuant to Section 6(b)(ii) hereof, the Company and
the Guarantors shall use all commercially reasonable efforts to keep any Shelf
Registration Statement required by this Section 4(a) continuously effective,
supplemented, amended and current as required by and subject to the provisions
of Sections 6(b) and (c) hereof and in conformity with the requirements of this
Agreement, the Act and the policies, rules and regulations of the Commission as
announced from time to time, for a period of at least two years (as extended
pursuant to Section 6(d)) following the Closing Date, or such shorter period as
will terminate when all Transfer Restricted Securities covered by such Shelf
Registration Statement have been sold pursuant thereto.

         (b)      Provision by Holders of Certain Information in Connection with
the Shelf Registration Statement. No Holder of Transfer Restricted Securities
may include any of its Transfer Restricted Securities in any Shelf Registration
Statement pursuant to this Agreement unless and until such Holder furnishes to
the Company in writing, within 20 days after receipt of a request therefor, the
information specified in Item 507 or 508 of Regulation S-K, as applicable, of
the Act for use in connection with any Shelf Registration Statement or
Prospectus or preliminary prospectus included therein. No Holder of Transfer
Restricted Securities shall be entitled to liquidated damages pursuant to
Section 5 hereof unless and until such Holder shall have provided all such
information. Each selling Holder agrees to promptly furnish additional
information required to be disclosed in order to make the information previously
furnished to the Company by such Holder not materially misleading.

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SECTION 5.        LIQUIDATED DAMAGES

         If (i) any Registration Statement required by this Agreement is not
filed with the Commission on or prior to the applicable Filing Deadline, (ii)
any such Registration Statement has not been declared effective by the
Commission on or prior to the applicable Effectiveness Deadline, (iii) the
Exchange Offer has not been Consummated on or prior to the Consummation Deadline
or (iv) any Registration Statement required by this Agreement is filed and
declared effective but shall thereafter cease to be effective or usable for its
intended purpose (each such event referred to in clauses (i) through (iv), a
"REGISTRATION DEFAULT"), then the Company and the Guarantors hereby jointly and
severally agree to pay to each Holder of Transfer Restricted Securities affected
thereby liquidated damages in an amount equal to $.05 per week per $1,000 in
principal amount of Transfer Restricted Securities held by such Holder for each
week or portion thereof that the Registration Default continues for the first
90-day period immediately following the occurrence of such Registration Default.
The amount of the liquidated damages shall increase by an additional $.05 per
week per $1,000 in principal amount of Transfer Restricted Securities with
respect to each subsequent 90-day period until all Registration Defaults have
been cured, up to a maximum amount of liquidated damages of $.50 per week per
$1,000 in principal amount of Transfer Restricted Securities; provided that the
Company and the Guarantors shall in no event be required to pay liquidated
damages for more than one Registration Default at any given time.
Notwithstanding anything to the contrary set forth herein, (1) upon filing of
the Exchange Offer Registration Statement (and/or, if applicable, the Shelf
Registration Statement), in the case of (i) above, (2) upon the effectiveness of
the Exchange Offer Registration Statement (and/or, if applicable, the Shelf
Registration Statement), in the case of (ii) above, (3) upon Consummation of the
Exchange Offer, in the case of (iii) above, or (4) upon the filing of a
post-effective amendment to the Registration Statement or an additional
Registration Statement that causes the Exchange Offer Registration Statement
(and/or, if applicable, the Shelf Registration Statement) to again be declared
effective or made usable, in the case of (iv) above, the liquidated damages
payable with respect to the Transfer Restricted Securities as a result of such
clause (i), (ii), (iii) or (iv), as applicable, shall cease.

         All accrued liquidated damages shall be paid to the Holders entitled
thereto, in the manner provided for the payment of interest in the Indenture, on
each Interest Payment Date, as more fully set forth in the Indenture and the
Notes. Notwithstanding the fact that any securities for which liquidated
damages are due cease to be Transfer Restricted Securities, all obligations of
the Company and the Guarantors to pay liquidated damages with respect to
securities shall survive until such time as such obligations with respect to
such securities shall have been satisfied in full.

SECTION 6.        REGISTRATION PROCEDURES

         (a)      Exchange Offer Registration Statement. In connection with the
Exchange Offer, the Company and the Guarantors shall (x) comply with all
applicable provisions of Section 6(c) below, (y) use all commercially reasonable
efforts to effect such exchange and to permit the resale of Exchange Notes by
Broker-Dealers that tendered in the Exchange Offer Initial Notes that such
Broker-Dealer acquired for its own account as a result of its market-making
activities or other trading activities (other than Initial Notes acquired
directly from the Company or any of

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its Affiliates) being sold in accordance with the intended method or methods of
distribution thereof, and (z) comply with all of the following provisions:

                  (i)      If, following the date hereof there has been
         announced a change in Commission policy with respect to exchange offers
         such as the Exchange Offer, that in the reasonable opinion of counsel
         to the Company raises a substantial question as to whether the Exchange
         Offer is permitted by applicable federal law, the Company and the
         Guarantors hereby agree to seek a no-action letter or other favorable
         decision from the Commission allowing the Company and the Guarantors to
         Consummate an Exchange Offer for such Transfer Restricted Securities.
         The Company and the Guarantors hereby agree to pursue the issuance of
         such a decision to the Commission staff level but shall not be required
         to take commercially unreasonable actions in connection therewith. In
         connection with the foregoing, the Company and the Guarantors hereby
         agree to take all other commercially reasonable actions as may be
         requested by the Commission or otherwise required in connection with
         the issuance of such decision, including without limitation (A)
         participating in telephonic conferences with the Commission, (B) if
         practicable, delivering to the Commission staff an analysis prepared by
         counsel to the Company setting forth the legal bases, if any, upon
         which such counsel has concluded that such an Exchange Offer should be
         permitted and (C) diligently pursuing a resolution (which need not be
         favorable) by the Commission staff.

                  (ii)     As a condition to its participation in the Exchange
         Offer, each Holder of Transfer Restricted Securities (including,
         without limitation, any Holder who is a Broker-Dealer) shall furnish,
         upon the request of the Company, prior to the Consummation of the
         Exchange Offer, a written representation to the Company and the
         Guarantors (which may be contained in the letter of transmittal
         contemplated by the Exchange Offer Registration Statement) to the
         effect that (A) it is not an Affiliate of the Company, (B) it is not
         engaged in, and does not intend to engage in, and has no arrangement or
         understanding with any person to participate in, a distribution of the
         Exchange Notes to be issued in the Exchange Offer and (C) it is
         acquiring the Exchange Notes in its ordinary course of business. As a
         condition to its participation in the Exchange Offer each Holder using
         the Exchange Offer to participate in a distribution of the Exchange
         Notes shall acknowledge and agree that, if the resales are of Exchange
         Notes obtained by such Holder in exchange for Initial Notes acquired
         directly from the Company or an Affiliate thereof, it (1) could not,
         under Commission policy as in effect on the date of this Agreement,
         rely on the position of the Commission enunciated in Morgan Stanley and
         Co. Inc. (available June 5, 1991) and Exxon Capital Holdings
         Corporation (available May 13, 1988), as interpreted in the
         Commission's letter to Shearman & Sterling dated July 2, 1993, and
         similar no-action letters (including, if applicable, any no-action
         letter obtained pursuant to clause (i) above), and (2) must comply with
         the registration and prospectus delivery requirements of the Act in
         connection with a secondary resale transaction and that such a
         secondary resale transaction must be covered by an effective
         registration statement containing the selling security holder
         information required by Item 507 or 508, as applicable, of Regulation
         S-K.

                  (iii)    Prior to effectiveness of the Exchange Offer
         Registration Statement, the Company and the Guarantors shall provide a
         supplemental letter to the Commission (A)

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         stating that the Company and the Guarantors are registering the
         Exchange Offer in reliance on the position of the Commission enunciated
         in Exxon Capital Holdings Corporation (available May 13, 1988), Morgan
         Stanley and Co., Inc.(available June 5, 1991) as interpreted in the
         Commission's letter to Shearman & Sterling dated July 2, 1993, and, if
         applicable, any no-action letter obtained pursuant to clause (i) above,
         (B) including a representation that neither the Company nor any
         Guarantor has entered into any arrangement or understanding with any
         Person to distribute the Exchange Notes to be received in the Exchange
         Offer and that, to the best of the Company's and each Guarantor's
         information and belief, each Holder participating in the Exchange Offer
         is acquiring the Exchange Notes in its ordinary course of business and
         has no arrangement or understanding with any Person to participate in
         the distribution of the Exchange Notes received in the Exchange Offer
         and (C) any other undertaking or representation required by the
         Commission as set forth in any no-action letter obtained pursuant to
         clause (i) above, if applicable.

         (b)      Shelf Registration Statement. In connection with the Shelf
Registration Statement, the Company and the Guarantors shall:

                  (i)      comply with all the provisions of Section 6(c) below
         and use all commercially reasonable efforts to effect such registration
         to permit the sale of the Transfer Restricted Securities being sold in
         accordance with the intended method or methods of distribution thereof
         (as indicated in the information furnished to the Company pursuant to
         Section 4(b) hereof), and pursuant thereto the Company and the
         Guarantors will prepare and file with the Commission a Registration
         Statement relating to the registration on any appropriate form under
         the Act, which form shall be available for the sale of the Transfer
         Restricted Securities in accordance with the intended method or methods
         of distribution thereof within the time periods and otherwise in
         accordance with the provisions hereof, and

                  (ii)     issue, upon the request of any Holder or purchaser of
         Initial Notes covered by any Shelf Registration Statement contemplated
         by this Agreement, Exchange Notes having an aggregate principal amount
         equal to the aggregate principal amount of Initial Notes sold pursuant
         to the Shelf Registration Statement and surrendered to the Company for
         cancellation; the Company shall register Exchange Notes on the Shelf
         Registration Statement for this purpose and issue the Exchange Notes to
         the purchaser(s) of securities subject to the Shelf Registration
         Statement in the names as such purchaser(s) shall designate.

         (c)      General Provisions. In connection with any Registration
Statement and any related Prospectus required by this Agreement, the Company and
the Guarantors shall:

                  (i)      use all commercially reasonable efforts to keep such
         Registration Statement continuously effective and provide all requisite
         financial statements for the period specified in Section 3 or 4 of this
         Agreement, as applicable. Upon the occurrence of any event that would
         cause any such Registration Statement or the Prospectus contained
         therein (A) to contain an untrue statement of material fact or omit to
         state any material fact necessary to make the statements therein not
         misleading or (B) not to be

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         effective and usable for resale of Transfer Restricted Securities
         during the period required by this Agreement, the Company and the
         Guarantors shall file promptly an appropriate amendment to such
         Registration Statement curing such defect, and, if Commission review is
         required, use all commercially reasonable efforts to cause such
         amendment to be declared effective as soon as practicable.

                  (ii)     prepare and file with the Commission such amendments
         and post-effective amendments to the applicable Registration Statement
         as may be necessary to keep such Registration Statement effective for
         the applicable period set forth in Section 3 or 4 hereof, as the case
         may be; cause the Prospectus to be supplemented by any required
         Prospectus supplement, and as so supplemented to be filed pursuant to
         Rule 424 under the Act, and to comply fully with Rules 424, 430A and
         462, as applicable, under the Act in a timely manner; and comply with
         the provisions of the Act with respect to the disposition of all
         securities covered by such Registration Statement during the applicable
         period in accordance with the intended method or methods of
         distribution by the sellers thereof set forth in such Registration
         Statement or supplement to the Prospectus;

                  (iii)    advise each Holder promptly and, if requested by such
         Holder, confirm such advice in writing, (A) when the Prospectus or any
         Prospectus supplement or post-effective amendment has been filed, and,
         with respect to any applicable Registration Statement or any
         post-effective amendment thereto, when the same has become effective,
         (B) of any request by the Commission for amendments to the Registration
         Statement or amendments or supplements to the Prospectus or for
         additional information relating thereto, (C) of the issuance by the
         Commission of any stop order suspending the effectiveness of the
         Registration Statement under the Act or of the suspension by any state
         securities commission of the qualification of the Transfer Restricted
         Securities for offering or sale in any jurisdiction, or the initiation
         of any proceeding for any of the preceding purposes, and (D) of the
         existence of any fact or the happening of any event that makes any
         statement of a material fact made in the Registration Statement, the
         Prospectus, any amendment or supplement thereto or any document
         incorporated by reference therein untrue, or that requires the making
         of any additions to or changes in the Registration Statement in order
         to make the statements therein not misleading, or that requires the
         making of any additions to or changes in the Prospectus in order to
         make the statements therein, in the light of the circumstances under
         which they were made, not misleading. If at any time the Commission
         shall issue any stop order suspending the effectiveness of the
         Registration Statement, or any state securities commission or other
         regulatory authority shall issue an order suspending the qualification
         or exemption from qualification of the Transfer Restricted Securities
         under state securities or Blue Sky laws, the Company and the Guarantors
         shall use all commercially reasonable efforts to obtain the withdrawal
         or lifting of such order at the earliest possible time;

                  (iv)     subject to Section 6(c)(i), if any fact or event
         contemplated by Section 6(c)(iii)(D) above shall exist or have
         occurred, prepare a supplement or post-effective amendment to the
         Registration Statement or related Prospectus or any document
         incorporated therein by reference or file any other required document
         so that, as thereafter delivered to the purchasers of Transfer
         Restricted Securities, the Prospectus will not contain an untrue
         statement of a material fact or omit to state any material fact

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         necessary to make the statements therein, in the light of the
         circumstances under which they were made, not misleading;

                  (v)      furnish to each Holder in connection with such
         exchange or sale, if any, before filing with the Commission, copies of
         any Registration Statement or any Prospectus included therein or any
         amendments or supplements to any such Registration Statement or
         Prospectus (including all documents incorporated by reference after the
         initial filing of such Registration Statement), which documents will be
         subject to the review and comment of such Holders in connection with
         such sale, if any, for a period of at least five Business Days, and the
         Company will not file any such Registration Statement or Prospectus or
         any amendment or supplement to any such Registration Statement or
         Prospectus (including all such documents incorporated by reference) to
         which such Holders shall reasonably object within five Business Days
         after the receipt thereof. A Holder shall be deemed to have reasonably
         objected to such filing if such Registration Statement, amendment,
         Prospectus or supplement, as applicable, as proposed to be filed,
         contains an untrue statement of a material fact or omits to state any
         material fact necessary to make the statements therein not misleading
         or fails to comply with the applicable requirements of the Act;

                  (vi)     promptly prior to the filing of any document that is
         to be incorporated by reference into a Registration Statement or
         Prospectus in connection with such exchange or sale, if any, provide
         copies of such document to each Holder, make the Company's and the
         Guarantors' representatives available for discussion of such document
         and other customary due diligence matters, and include such information
         in such document prior to the filing thereof as such Holders may
         reasonably request;

                  (vii)    make available, at reasonable times, for inspection
         by each Holder and any attorney or accountant retained by such Holders,
         all financial and other records, pertinent corporate documents of the
         Company and the Guarantors and cause the Company's and the Guarantors'
         officers, directors and employees to supply all information reasonably
         requested by any such Holder, attorney or accountant in connection with
         such Registration Statement or any post-effective amendment thereto
         subsequent to the filing thereof and prior to its effectiveness;

                  (viii)   if requested by any Holders in connection with such
         exchange or sale, promptly include in any Registration Statement or
         Prospectus, pursuant to a supplement or post-effective amendment if
         necessary, such information as such Holders may reasonably request to
         have included therein, including, without limitation, information
         relating to the "Plan of Distribution" of the Transfer Restricted
         Securities; and make all required filings of such Prospectus
         supplement or post-effective amendment as soon as practicable after the
         Company is notified of the matters to be included in such Prospectus
         supplement or post-effective amendment;

                  (ix)     furnish to each Holder in connection with such
         exchange or sale, without charge, at least one copy of the Registration
         Statement, as first filed with the Commission, and of each amendment
         thereto, including all documents incorporated by reference therein and
         all exhibits (including exhibits incorporated therein by reference);

                                       10

<PAGE>

                  (x)      deliver to each Holder without charge, as many copies
         of the Prospectus (including each preliminary prospectus) and any
         amendment or supplement thereto as such Persons reasonably may request;
         the Company and the Guarantors hereby consent to the use (in accordance
         with law) of the Prospectus and any amendment or supplement thereto by
         each selling Holder in connection with the offering and the sale of the
         Transfer Restricted Securities covered by the Prospectus or any
         amendment or supplement thereto;

                  (xi)     upon the request of any Holder, enter into such
         agreements (including underwriting agreements in connection with any
         underwritten offering) and make such representations and warranties and
         take all such other actions in connection therewith in order to
         expedite or facilitate the disposition of the Transfer Restricted
         Securities pursuant to any applicable Registration Statement
         contemplated by this Agreement as may be reasonably requested by any
         Holder in connection with any sale or resale pursuant to any applicable
         Registration Statement. In such connection, the Company and the
         Guarantors shall:

                           (A)      upon request of any Holder, furnish to each
                  Holder upon Consummation of the Exchange Offer or upon the
                  effectiveness of the Shelf Registration Statement, as the case
                  may be, a certificate, dated such date, signed on behalf of
                  the Company and each Guarantor by (x) the President or any
                  Vice President and (y) a principal financial or accounting
                  officer of the Company and such Guarantor, confirming, as of
                  the date thereof, such matters as such Holders may reasonably
                  request; and

                           (B)      deliver such other documents and
                  certificates as may be reasonably requested by the selling
                  Holders to evidence compliance with the matters covered in
                  clause (A) above and with any customary conditions contained
                  in the any agreement entered into by the Company and the
                  Guarantors pursuant to this clause (xi);

                  (xii)    prior to any public offering of Transfer Restricted
         Securities, cooperate with the selling Holders and their counsel in
         connection with the registration and qualification of the Transfer
         Restricted Securities under the securities or Blue Sky laws of such
         jurisdictions as the selling Holders may request and do any and all
         other acts or things necessary or advisable to enable the disposition
         in such jurisdictions of the Transfer Restricted Securities covered by
         the applicable Registration Statement; provided, however, that neither
         the Company nor any Guarantor shall be required to register or qualify
         as a foreign corporation where it is not now so qualified or to take
         any action that would subject it to the service of process in suits or
         to taxation, other than as to matters and transactions relating to the
         Registration Statement, in any jurisdiction where it is not now so
         subject;

                  (xiii)   in connection with any sale of Transfer Restricted
         Securities that will result in such securities no longer being Transfer
         Restricted Securities, cooperate with the Holders to facilitate the
         timely preparation and delivery of certificates representing Transfer
         Restricted Securities to be sold and not bearing any restrictive
         legends; and to register such Transfer Restricted Securities in such
         denominations and such names as the

                                       11

<PAGE>

         selling Holders may request at least two Business Days prior to such
         sale of Transfer Restricted Securities;

                  (xiv)    use all commercially reasonable efforts to cause the
         disposition of the Transfer Restricted Securities covered by the
         Registration Statement to be registered with or approved by such other
         governmental agencies or authorities as may be necessary to enable the
         seller or sellers thereof to consummate the disposition of such
         Transfer Restricted Securities, subject to the proviso contained in
         clause (xii) above;

                  (xv)     provide a CUSIP number for all Transfer Restricted
         Securities not later than the effective date of a Registration
         Statement covering such Transfer Restricted Securities and provide the
         Trustee under the Indenture with printed certificates for the Transfer
         Restricted Securities which are in a form eligible for deposit with the
         Depository Trust Company;

                  (xvi)    otherwise use all commercially efforts to comply with
         all applicable rules and regulations of the Commission, and make
         generally available to its security holders with regard to any
         applicable Registration Statement, as soon as practicable, a
         consolidated earnings statement meeting the requirements of Rule 158
         under the Act (which need not be audited) covering a twelve-month
         period beginning after the effective date of the Registration Statement
         (as such term is defined in paragraph (c) of Rule 158 under the Act);

                  (xvii)   cause the Indenture to be qualified under the TIA not
         later than the effective date of the first Registration Statement
         required by this Agreement and, in connection therewith, cooperate with
         the Trustee and the Holders to effect such changes to the Indenture as
         may be required for such Indenture to be so qualified in accordance
         with the terms of the TIA; and execute and use its best efforts to
         cause the Trustee to execute, all documents that may be required to
         effect such changes and all other forms and documents required to be
         filed with the Commission to enable such Indenture to be so qualified
         in a timely manner; and

                  (xviii)  provide promptly to each Holder, upon request, each
         document filed with the Commission pursuant to the requirements of
         Section 13 or Section 15(d) of the Exchange Act.

         (d)      Restrictions on Holders. Each Holder agrees by acquisition of
a Transfer Restricted Security that, upon receipt of the notice referred to in
Section 6(c)(iii)(C) or any notice from the Company of the existence of any fact
of the kind described in Section 6(c)(iii)(D) hereof (in each case, a
"SUSPENSION NOTICE"), such Holder will forthwith discontinue disposition of
Transfer Restricted Securities pursuant to the applicable Registration Statement
until (i) such Holder has received copies of the supplemented or amended
Prospectus contemplated by Section 6(c)(iv) hereof, or (ii) such Holder is
advised in writing by the Company that the use of the Prospectus may be resumed,
and has received copies of any additional or supplemental filings that are
incorporated by reference in the Prospectus (in each case, the "RECOMMENCEMENT
DATE"). Each Holder receiving a Suspension Notice hereby agrees that it will
either (i) destroy any Prospectuses, other than permanent file copies, then in
such Holder's possession which have

                                       12

<PAGE>

been replaced by the Company with more recently dated Prospectuses or (ii)
deliver to the Company (at the Company's expense) all copies, other than
permanent file copies, then in such Holder's possession of the Prospectus
covering such Transfer Restricted Securities that was current at the time of
receipt of the Suspension Notice. The time period regarding the effectiveness
of such Registration Statement set forth in Section 3 or 4 hereof, as
applicable, shall be extended by a number of days equal to the number of days in
the period from and including the date of delivery of the Suspension Notice to
the Recommencement Date.

SECTION 7.        REGISTRATION EXPENSES

         (a)      All expenses incident to the Company's and the Guarantors'
performance of or compliance with this Agreement will be borne by the Company,
regardless of whether a Registration Statement becomes effective, including
without limitation: (i) all registration and filing fees and expenses; (ii)
all fees and expenses of compliance with federal securities and state Blue Sky
or securities laws; (iii) all expenses of printing (including printing
certificates for the Exchange Notes to be issued in the Exchange Offer and
printing of Prospectuses), messenger and delivery services and telephone; (iv)
all fees and disbursements of counsel for the Company, the Guarantors and the
Holders of Transfer Restricted Securities; (v) all application and filing fees
in connection with listing the Exchange Notes on a national securities exchange
or automated quotation system pursuant to the requirements hereof; and (vi) all
fees and disbursements of independent certified public accountants of the
Company and the Guarantors (including the expenses of any special audit and
comfort letters required by or incident to such performance).

         The Company will, in any event, bear its and the Guarantors' internal
expenses (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), the expenses of
any annual audit and the fees and expenses of any Person, including special
experts, retained by the Company or the Guarantors.

         (b)      In connection with any Registration Statement required by this
Agreement (including, without limitation, the Exchange Offer Registration
Statement and the Shelf Registration Statement), the Company and the Guarantors
will reimburse the Initial Purchasers and the Holders of Transfer Restricted
Securities who are tendering Initial Notes in the Exchange Offer and/or selling
or reselling Initial Notes or Exchange Notes pursuant to the "Plan of
Distribution" contained in the Exchange Offer Registration Statement or the
Shelf Registration Statement, as applicable, for the reasonable fees and
disbursements of not more than one counsel, who shall be Latham & Watkins LLP,
unless another firm shall be chosen by the Holders of a majority in principal
amount of the Transfer Restricted Securities for whose benefit such Registration
Statement is being prepared.

SECTION 8.        INDEMNIFICATION

         (a)      The Company and the Guarantors agree, jointly and severally,
to indemnify and hold harmless each Holder, its directors, officers and each
Person, if any, who controls such Holder (within the meaning of Section 15 of
the Act or Section 20 of the Exchange Act), from and against any and all losses,
claims, damages, liabilities, judgments, (including without limitation, any
legal or other expenses incurred in connection with investigating or defending
any matter, including any action that could give rise to any such losses,
claims, damages, liabilities or

                                       13

<PAGE>

judgments) caused by any untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement, preliminary prospectus or
Prospectus (or any amendment or supplement thereto) provided by the Company to
any Holder or any prospective purchaser of Exchange Notes or registered Initial
Notes, or caused by any omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
not misleading, except insofar as such losses, claims, damages, liabilities or
judgments are caused by an untrue statement or omission or alleged untrue
statement or omission that is based upon information relating to any of the
Holders furnished in writing to the Company by any of the Holders.

         (b)      Each Holder of Transfer Restricted agrees, severally and not
jointly, to indemnify and hold harmless the Company and the Guarantors, and
their respective directors and officers, and each person, if any, who controls
(within the meaning of Section 15 of the Act or Section 20 of the Exchange Act)
the Company, or the Guarantors to the same extent as the foregoing indemnity
from the Company and the Guarantors set forth in section (a) above, but only
with reference to information relating to such Holder furnished in writing to
the Company by such Holder expressly for use in any Registration Statement. In
no event shall any Holder, its directors, officers or any Person who controls
such Holder be liable or responsible for any amount in excess of the amount by
which the total amount received by such Holder with respect to its sale of
Transfer Restricted Securities pursuant to a Registration Statement exceeds (i)
the amount paid by such Holder for such Transfer Restricted Securities and (ii)
the amount of any damages that such Holder, its directors, officers or any
Person who controls such Holder has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission.

         (c)      In case any action shall be commenced involving any person in
respect of which indemnity may be sought pursuant to Section 8(a) or 8(b) (the
"INDEMNIFIED PARTY"), the indemnified party shall promptly notify the person
against whom such indemnity may be sought (the ",INDEMNIFYING PERSON") in
writing and the indemnifying party shall assume the defense of such action,
including the employment of counsel reasonably satisfactory to the indemnified
party and the payment of all fees and expenses of such counsel, as incurred
(except that in the case of any action in respect of which indemnity may be
sought pursuant to both Sections 8(a) and 8(b), a Holder shall not be required
to assume the defense of such action pursuant to this Section 8(c), but may
employ separate counsel and participate in the defense thereof, but the fees and
expenses of such counsel, except as provided below, shall be at the expense of
the Holder). Any indemnified party shall have the right to employ separate
counsel in any such action and participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of the indemnified party
unless (i) the employment of such counsel shall have been specifically
authorized in writing by the indemnifying party, (ii) the indemnifying party
shall have failed to assume the defense of such action or employ counsel
reasonably satisfactory to the indemnified party or (iii) the named parties to
any such action (including any impleaded parties) include both the indemnified
party and the indemnifying party, and the indemnified party shall have been
advised by such counsel that there may be one or more legal defenses available
to it which are different from or additional to those available to the
indemnifying party (in which case the indemnifying party shall not have the
right to assume the defense of such action on behalf of the indemnified party).
In any such case, the indemnifying party shall not, in connection with any one
action or separate but substantially similar or related actions in the same
jurisdiction

                                       14

<PAGE>

arising out of the same general allegations or circumstances, be liable for the
fees and expenses of more than one separate firm of attorneys (in addition to
any local counsel) for all indemnified parties and all such fees and expenses
shall be reimbursed as they are incurred. Such firm shall be designated in
writing by a majority of the Holders, in the case of the parties indemnified
pursuant to Section 8(a), and by the Company and Guarantors, in the case of
parties indemnified pursuant to Section 8(b). The indemnifying party shall
indemnify and hold harmless the indemnified party from and against any and all
losses, claims, damages, liabilities and judgments by reason of any settlement
of any action (i) effected with its written consent or (ii) effected without its
written consent if the settlement is entered into more than twenty Business Days
after the indemnifying party shall have received a request from the indemnified
party for reimbursement for the fees and expenses of counsel (in any case where
such fees and expenses are at the expense of the indemnifying party) and, prior
to the date of such settlement, the indemnifying party shall have failed to
comply with such reimbursement request. No indemnifying party shall, without
the prior written consent of the indemnified party, effect any settlement or
compromise of, or consent to the entry of judgment with respect to, any pending
or threatened action in respect of which the indemnified party is or could have
been a party and indemnity or contribution may be or could have been sought
hereunder by the indemnified party, unless such settlement, compromise or
judgment (i) includes an unconditional release of the indemnified party from all
liability on claims that are or could have been the subject matter of such
action and (ii) does not include a statement as to or an admission of fault,
culpability or a failure to act, by or on behalf of the indemnified party.

         (d)      To the extent that the indemnification provided for in this
Section 8 is unavailable to an indemnified party in respect of any losses,
claims, damages, liabilities or judgments referred to therein, then each
indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages, liabilities or judgments (i) in such proportion
as is appropriate to reflect the relative benefits received by the Company and
the Guarantors, on the one hand, and the Holders, on the other hand, from their
sale of Transfer Restricted Securities or (ii) if the allocation provided by
clause 8(d)(i) above is not permitted by applicable law, in such proportion as
is appropriate to reflect not only the relative benefits referred to in clause
8(d)(i) above but also the relative fault of the Company and the Guarantors, on
the one hand, and of the Holder, on the other hand, in connection with the
statements or omissions which resulted in such losses, claims, damages,
liabilities or judgments, as well as any other relevant equitable
considerations. The relative fault of the Company and the Guarantors, on the one
hand, and of the Holder, on the other hand, shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to
information supplied by the Company or such Guarantor, on the one hand, or by
the Holder, on the other hand, and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission.

         The Company, the Guarantors and each Holder agree that it would not be
just and equitable if contribution pursuant to this Section 8(d) were determined
by pro rata allocation (even if the Holders were treated as one entity for such
purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to in the immediately preceding paragraph. The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages, liabilities or judgments referred to in the immediately

                                       15

<PAGE>

preceding paragraph shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any matter, including any
action that could have given rise to such losses, claims, damages, liabilities
or judgments. Notwithstanding the provisions of this Section 8, no Holder, its
directors, its officers or any Person, if any, who controls such Holder shall be
required to contribute, in the aggregate, any amount in excess of the amount by
which the total received by such Holder with respect to the sale of Transfer
Restricted Securities pursuant to a Registration Statement exceeds (i) the
amount paid by such Holder for such Transfer Restricted Securities and (ii) the
amount of any damages which such Holder has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. The Holders'
obligations to contribute pursuant to this Section 8(d) are several in
proportion to the respective principal amount of Transfer Restricted Securities
held by each Holder hereunder and not joint.

SECTION 9.        RULE 144A AND RULE 144

         The Company and each Guarantor agrees with each Holder, for so long as
any Transfer Restricted Securities remain outstanding and during any period in
which the Company or such Guarantor (i) is not subject to Section 13 or 15(d) of
the Exchange Act, to make available, upon request of any Holder, to such Holder
or beneficial owner of Transfer Restricted Securities in connection with any
sale thereof and any prospective purchaser of such Transfer Restricted
Securities designated by such Holder or beneficial owner, the information
required by Rule 144A(d)(4) under the Act in order to permit resales of such
Transfer Restricted Securities pursuant to Rule 144A under the Act, and (ii) is
subject to Section 13 or 15 (d) of the Exchange Act, to make all filings
required thereby in a timely manner in order to permit resales of such Transfer
Restricted Securities pursuant to Rule 144.

SECTION 10.       MISCELLANEOUS

         (a)      Remedies. The Company and the Guarantors acknowledge and
agree that any failure by the Company and/or the Guarantors to comply with their
respective obligations under Sections 3 and 4 hereof may result in material
irreparable injury to the Initial Purchasers, the Agent or the Holders for which
there is no adequate remedy at law, that it will not be possible to measure
damages for such injuries precisely and that, in the event of any such failure,
the Initial Purchasers, the Agent or any Holder may obtain such relief as may be
required to specifically enforce the Company's and the Guarantors' obligations
under Sections 3 and 4 hereof. The Company and the Guarantors further agree to
waive the defense in any action for specific performance that a remedy at law
would be adequate.

         (b)      No Inconsistent Agreements. Neither the Company nor any
Guarantor will, on or after the date of this Agreement, enter into any agreement
with respect to its securities that is inconsistent with the rights granted to
the Holders in this Agreement or otherwise conflicts with the provisions hereof.
Neither the Company nor any Guarantor has previously entered into, or is
currently a party to, any agreement granting any registration rights with
respect to its securities to any Person that would require such securities to be
included in any Registration Statement filed

                                       16

<PAGE>

hereunder. The rights granted to the Holders hereunder do not in any way
conflict with and are not inconsistent with the rights granted to the holders of
the Company's and the Guarantors' securities under any agreement in effect on
the date hereof.

         (c)      Amendments and Waivers. The provisions of this Agreement may
not be amended, modified or supplemented, and waivers or consents to or
departures from the provisions hereof may not be given unless (i) in the case of
Section 5 hereof and this Section 10(c)(i), the Company has obtained the written
consent of Holders of all outstanding Transfer Restricted Securities and (ii) in
the case of all other provisions hereof, the Company has obtained the written
consent of Holders of a majority of the outstanding principal amount of Transfer
Restricted Securities (excluding Transfer Restricted Securities held by the
Company or its Affiliates). Notwithstanding the foregoing, a waiver or consent
to departure from the provisions hereof that relates exclusively to the rights
of Holders whose Transfer Restricted Securities are being tendered pursuant to
the Exchange Offer, and that does not affect directly or indirectly the rights
of other Holders whose Transfer Restricted Securities are not being tendered
pursuant to such Exchange Offer, may be given by the Holders of a majority of
the outstanding principal amount of Transfer Restricted Securities subject to
such Exchange Offer.

         (d)      Third Party Beneficiary. The Holders shall be third party
beneficiaries to the agreements made hereunder between the Company and the
Guarantors, on the one hand, and the Initial Purchasers and the Agent, on the
other hand, and shall have the right to enforce such agreements directly to the
extent they may deem such enforcement necessary or advisable to protect its
rights or the rights of Holders hereunder.

         (e)      Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, first-class mail
(registered or certified, return receipt requested), telex, telecopier or air
courier guaranteeing overnight delivery:

                  (i)      if to a Holder, at the address set forth on the
         records of the Registrar under the Indenture, with a copy to the
         Registrar under the Indenture; and

                  (ii)     if to the Company or the Guarantors:

                                    Haights Cross Operating Company
                                    10 New King Street
                                    White Plains, New York 10604
                                    Telecopier No.: (914) 289-9401,
                                    Attention: Chief Financial Officer

                                       17

<PAGE>

                                    With a copy to:

                                    Goodwin Procter LLP
                                    53 State Street
                                    Exchange Place
                                    Boston, Massachusetts 02109
                                    Telecopier No.: (617) 523-1231.
                                    Attention: David F. Dietz, P.C.

         All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five Business
Days after being deposited in the mail, postage prepaid, if mailed; when
receipt acknowledged, if telecopied; and on the next Business Day, if timely
delivered to an air courier guaranteeing overnight delivery.

         Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee at the
address specified in the Indenture.

         (f)      Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each of the
parties, including without limitation and without the need for an express
assignment, subsequent Holders; provided that nothing herein shall be deemed to
permit any assignment, transfer or other disposition of Transfer Restricted
Securities in violation of the terms hereof or of the Purchase Agreement or the
Indenture. If any transferee of any Holder shall acquire Transfer Restricted
Securities in any manner, whether by operation of law or otherwise, such
Transfer Restricted Securities shall be held subject to all of the terms of this
Agreement, and by taking and holding such Transfer Restricted Securities such
Person shall be conclusively deemed to have agreed to be bound by and to perform
all of the terms and provisions of this Agreement, including the restrictions on
resale set forth in this Agreement and, if applicable, the Purchase Agreement,
and such Person shall be entitled to receive the benefits hereof.

         (g)      Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

         (h)      Headings. The headings in this Agreement are for convenience
of reference only and shall not limit or otherwise affect the meaning hereof.

         (i)      Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO THE CONFLICT OF LAW RULES THEREOF.

         (j)      Severability. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

                                       18

<PAGE>

         (k)      Entire Agreement. This Agreement is intended by the parties
as a final expression of their agreement and intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted with respect to the
Transfer Restricted Securities. This Agreement supersedes all prior agreements
and understandings between the parties with respect to such subject matter.

                                       19

<PAGE>

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

                                    HAIGHTS CROSS OPERATING COMPANY

                                    By: /s/ Paul J. Crecca
                                        -------------------------------------
                                        Name:  Paul J. Crecca
                                        Title: Executive Vice President and
                                               Chief Financial Officer

                                    HAIGHTS CORSS COMMUNICATIONS, INC.

                                    By: /s/ Paul J. Crecca
                                        -------------------------------------
                                        Name:  Paul J. Crecca
                                        Title: Executive Vice President and
                                               Chief Financial Officer

                                    SUNDANCE/NEWBRIDGE EDUCATIONAL
                                     PUBLISHING, LLC
                                    CHELSEA HOUSE PUBLISHERS, LLC
                                    RECORDED BOOKS, LLC
                                    TRIUMPH LEARNING, LLC
                                    OAKSTONE PUBLISHING, LLC
                                    THE CORIOLIS GROUP, LLC

                                    By: /s/ Paul J. Crecca
                                        -------------------------------------
                                        Name:  Paul J. Crecca
                                        Title: Vice President

                                    WF HOWES LIMITED

                                    By: /s/ Ronald Moody
                                        -------------------------------------
                                        Name:  RONALD MOODY
                                        Title: COMPANY SECRETARY

                          Registration Rights Agreement

<PAGE>

BEAR, STEARNS & Co. INC.

By: /s/ Joseph Sheehan
    -----------------------
    Name:  Joseph Sheehan
    Title: Senior Managing Director

BNY CAPITAL MARKETS, INC.

By: /s/ Philip Benedict
    -----------------------
    Name:  Philip Benedict
    Title: Vice President

JEFFERIES & COMPANY, INC.

By: /s/ Raymond J. Minella
    -----------------------
    Name:  Raymond J. Minella
    Title: Director, Investment
           Banking Capital Markets

LANE, BERRY & Co. INTERNATIONAL, LLC

By: /s/ Robert M. Berry
    -----------------------
    Name:  Robert M. Berry
    Title: President

                          Registration Rights Agreement

<PAGE>

                                   SCHEDULE I

Haights Cross Communications, Inc.

Sundance/Newbridge Educational Publishing, LLC

Chelsea House Publishers, LLC

Recorded Books, LLC

Triumph Learning, LLC

Oakstone Publishing, LLC

The Coriolis Group, LLC

WF Howes Limited

                                       I-1<PAGE>

                                                                    EXHIBIT 10.1

                                 LEASE AGREEMENT

                  THIS LEASE AGREEMENT is dated this 15th day of January, 2003
between LIT INDUSTRIAL LIMITED PARTNERSHIP ("Landlord") and the Tenant named
below.

<TABLE>
<S>                                 <C>
TENANT:                             Sundance Publishing, LLC

ADDRESS AND PHONE NO:               One Beeman Road, Northborough, MA 01532

GUARANTOR:                          Haights Cross Communications, Inc.

ADDRESS AND PHONE NO:               10 New King Street, White Plains, NY 10604
                                    (914) 289-9490

PREMISES:                           That portion of the Building, containing
                                    approximately 150,000 rentable square feet,
                                    as shown on EXHIBIT A, situated on a portion
                                    of that certain real property legally
                                    described in EXHIBIT A-1 attached hereto.

PROJECT:                            The Building and the real property
                                    consisting of approximately 36.5 acres of
                                    land located at One Beeman Road,
                                    Northborough, Massachusetts.

BUILDING:                           The industrial building located at One
                                    Beeman Road, Northborough, Massachusetts
                                    containing approximately 311,702 rentable
                                    square feet of floor area.

TENANT'S PROPORTIONATE
SHARE:                              48.12 %

LEASE TERM:                         Beginning on the Commencement Date and
                                    ending on the last day of the sixty-third
                                    (63rd) full calendar month after the Rent
                                    Commencement Date. It is agreed that no Base
                                    Rent is due from Tenant for the months of
                                    April, May and June, 2003, corresponding to
                                    months 1-3 in the Monthly Base Rent table
                                    below.

OPTION TO EXTEND:                   One (1) five (5) year option to extend, as
                                    more particularly described in Paragraph 33.

COMMENCEMENT DATE:                  January 15, 2003.

RENT COMMENCEMENT DATE:             April 1, 2003.

MONTHLY BASE RENT:
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------
MONTHS    ANNUAL RATE PER SQ. FT.    MONTHLY BASE RENT
------------------------------------------------------
<S>       <C>                        <C>
  1-3           Zero Dollars            Zero Dollars
----------------------------------------------------
 4-15             $ 5.40                $  67,500.00
----------------------------------------------------
16-27             $ 5.50                $  68,750.00
----------------------------------------------------
28-39             $ 5.75                $  71,875.00
----------------------------------------------------
40-51             $ 5.75                $  71,875.00
----------------------------------------------------
52-63             $ 6.00                $  75,000.00
----------------------------------------------------
</TABLE>

<TABLE>
<S>                                 <C>
                                    1. Utilities: To be paid separately in
INITIAL ESTIMATED                      accordance with Paragraph 7 herein.
MONTHLY OPERATING
EXPENSE PAYMENTS:                   2. Common Area Charges:    $ 2,795.83
(estimates only and
subject to adjustment to            3. Taxes:                  $ 5,326.67
</TABLE>

<PAGE>

<TABLE>
<S>                                 <C>
actual costs and expenses           4. Insurance:              $   812.50
according to the
provisions of this Lease)           5. Management Fee:         $ 1,737.17

TOTAL INITIAL ESTIMATED
MONTHLY OPERATING EXPENSE
PAYMENTS:                                       $  10,672.17

INITIAL MONTHLY BASE RENT
AND OPERATING EXPENSE
PAYMENTS:                                       $  78,172.17

SECURITY DEPOSIT:                               $ 135,000.00

BROKERS:                            Insignia/ESG and CB Richard Ellis/Whittier
                                    Partners

ADDENDA:                            Rules and Regulations; Exhibit A (Premises);
                                    Exhibit A-1 (Legal Description of Real
                                    Property); Exhibit B (Construction
                                    Addendum); Exhibit C (Environmental
                                    Reports); Parking Plan; Right of First
                                    Offer; Guaranty
</TABLE>

                                        2

<PAGE>

                  1.       GRANTING CLAUSE. In consideration of the obligation
of Tenant to pay rent as herein provided and in consideration of the other
terms, covenants, and conditions hereof, Landlord leases to Tenant, and Tenant
leases from Landlord, the Premises, to have and to hold for the Lease Term,
subject to the terms, covenants and conditions of this Lease.

                  2.       ACCEPTANCE OF PREMISES. (a) Except as may otherwise
be expressly provided in the Construction Addendum attached hereto, Tenant shall
accept the Premises on the Commencement Date in its "AS-IS" condition, subject
to all applicable laws, ordinances, regulations, covenants and restrictions, and
Landlord shall have no obligation to perform or pay for any repair or other work
therein. Landlord has made no representation or warranty as to the suitability
of the Premises for the conduct of Tenant's business, and Tenant waives any
implied warranty that the Premises are suitable for Tenant's intended purposes.
TENANT ACKNOWLEDGES THAT (1) IT HAS INSPECTED AND ACCEPTS THE PREMISES IN AN "AS
IS, WHERE IS" CONDITION (UNLESS OTHERWISE EXPRESSLY PROVIDED IN A CONSTRUCTION
ADDENDUM ATTACHED HERETO, IF ANY), (2) LANDLORD HAS MADE NO WARRANTY,
REPRESENTATION, COVENANT, OR AGREEMENT WITH RESPECT TO THE MERCHANTABILITY OR
FITNESS FOR ANY PARTICULAR PURPOSE OF THE PREMISES, (3) NO REPRESENTATIONS AS TO
THE REPAIR OF THE PREMISES, NOR PROMISES TO ALTER, REMODEL OR IMPROVE THE
PREMISES HAVE BEEN MADE BY LANDLORD (UNLESS OTHERWISE EXPRESSLY PROVIDED IN A
CONSTRUCTION ADDENDUM ATTACHED HERETO, IF ANY), AND (4) THERE ARE NO
REPRESENTATIONS OR WARRANTIES, EXPRESSED, OR IMPLIED, THAT EXTEND BEYOND THE
DESCRIPTION OF THE PREMISES. Except as provided in Paragraph 10 and the
Construction Addendum, in no event shall Landlord have any obligation for any
defects in the Premises or any limitation on its use. The taking of possession
of the Premises shall be conclusive evidence that Tenant accepts the Premises
and that the Premises were in good condition at the time possession was taken
except for items that are Landlord's responsibility under Paragraph 10 and the
Construction Addendum, and any punchlist items agreed to in writing by Landlord
and Tenant.

                  (b)      Landlord shall deliver the Premises to Tenant vacant,
broom clean, free from all contents, subject to the provision of Section 12(f),
with the demolition and removal of the spray booth, tool area and wire mesh
partition completed and all electrical and mechanical systems and services in
the warehouse portion of the Premises related to such demolition properly
terminated, and all Building systems, including but not limited to structural
elements (roof, foundation, walls, parking, etc.), interior and exterior glass,
plumbing, fire sprinkler system, sewage treatment, electrical power, interior
and exterior lighting, fire alarms, heating and cooling equipment, and all dock
doors and equipment serviced, if necessary, and in good operating condition.
Tenant shall have a period of sixty (60) days from the beginning of the
applicable equipment operational season to notify Landlord of any problems with
any of the above-listed systems.

                  (c)      Tenant shall have a right of first offer to lease
additional space at the Project in accordance with the provisions of the Right
of First Offer exhibit attached hereto.

                  (d)      Notwithstanding anything contained in this Lease to
the contrary, Tenant shall have a one-time right to terminate this Lease if a
building permit for the Tenant Improvements shown and described in the plans and
specifications delivered by Landlord to the Building Inspector for the Town of
Northborough on January 8, 2003 is not issued by February 7, 2003. Tenant may
exercise its right hereunder by delivering written notice of its election to
terminate this Lease to Landlord no later than February 12, 2003, unless the
building permit is issued prior to Landlord's receipt of such notification, in
which case such notification shall be of no force or effect. If Tenant fails to
notify Landlord of its election to terminate this Lease in accordance with the
foregoing provisions, Tenant's right to terminate this Lease shall be deemed
waived and of no further force or effect.

                  3.       USE. (a) The Premises shall be used only for the
purpose of receiving, storing, shipping and selling (but limited to wholesale
sales) products, materials and merchandise made and/or distributed by Tenant and
related general office use and for such other lawful purposes as may be
incidental thereto (the "Permitted Use"); however, no retail sales may be made
from the Premises. Tenant shall not conduct or give notice of any auction,
liquidation, or going out of business sale on the Premises. Tenant will use the
Premises in a careful, safe and proper manner and will not commit waste,
overload the floor or structure of the Premises or subject the Premises to use
that would damage the Premises. Tenant shall not permit any objectionable or
unpleasant odors, smoke, dust, gas, noise, or vibrations to emanate from the
Premises, or take any

                                       3

<PAGE>

other action that would constitute a nuisance or would disturb, unreasonably
interfere with, or endanger Landlord or any tenants of the Project. Except as
otherwise set forth in Section 14, outside storage, including without
limitation, storage of trucks and other vehicles, is prohibited without
Landlord's prior written consent.

                  (b)      Tenant, at its sole expense, shall use and occupy the
Premises in compliance with all laws, including, without limitation, the
Americans With Disabilities Act, orders, judgments, ordinances, regulations,
codes, directives, permits, licenses, covenants and restrictions now or
hereafter applicable to the Premises (collectively, "Legal Requirements"). The
Premises shall not be used as a place of public accommodation under the
Americans With Disabilities Act or similar state statutes or local ordinances or
any regulations promulgated thereunder, all as may be amended from time to time.
Tenant shall, at its expense, make any alterations or modifications, within or
without the Premises, that are required by Legal Requirements related to
Tenant's specific use or occupation of the Premises. Tenant will not use or
permit the Premises to be used for any purpose or in any manner that would void
Tenant's or Landlord's insurance, increase the insurance risk, or cause the
disallowance of any sprinkler credits. If any increase in the cost of any
insurance on the Premises or the Project is caused by Tenant's use or occupation
of the Premises, or because Tenant vacates the Premises, then Tenant shall pay
the amount of such increase to Landlord. Any entrance into or occupation of the
Premises by Tenant prior to the Commencement Date shall be subject to all
obligations of Tenant under this Lease, other than the obligation to pay Rent.

                  (c)      Tenant shall have access to the Premises from and
after the execution by both parties of this Lease, at Tenant's sole risk and
expense, for the purpose of planning, design and implementation of the Tenant's
data and telecommunication infrastructure and office space modifications
(subject to Landlord's prior approval, which shall not be unreasonably withheld,
conditioned or delayed), upon reasonable advance notice to Landlord and provided
that Tenant furnishes Landlord with a certificate of insurance evidencing
Tenant's commercial general liability insurance coverage prior to entry upon the
Property.

                  (d)      Tenant and its employees and invitees shall have the
non-exclusive right to use, in common with others, any areas designated by
Landlord from time to time as common areas for the use and enjoyment of all
tenants and occupants of the Project including, without limitation, common
access from public streets, common driveways and the parking areas shown on the
Parking Plan attached as an exhibit hereto, subject to such reasonable rules and
regulations as Landlord may promulgate from time to time which Landlord agrees
to enforce against tenants of the Project in a non-discriminatory manner.

                  4.       BASE RENT. Tenant shall pay Base Rent in the amount
set forth on the first page of this Lease. The first payable month's Base Rent,
the Security Deposit, and the first payable monthly installment of estimated
Operating Expenses (as hereafter defined) shall be due and payable on the date
hereof, and Tenant promises to pay to Landlord in advance, without demand,
deduction or set-off, monthly installments of Base Rent, in accordance with the
Monthly Base Rent table, on or before the first day of each calendar month
succeeding the Rent Commencement Date. Payments of Base Rent for any fractional
calendar month shall be prorated. All payments required to be made by Tenant to
Landlord hereunder shall be payable at such address as Landlord may specify from
time to time by written notice delivered in accordance herewith. Tenant shall
have no right at any time to abate, reduce, or set-off any rent due hereunder
except where expressly provided in this Lease. Tenant acknowledges that late
payment by Tenant to Landlord of any rent due hereunder will cause Landlord to
incur costs not contemplated by this Lease, the exact amount of such costs being
extremely difficult and impractical to determine. Therefore, if Tenant is
delinquent in any monthly installment of Base Rent, estimated Operating Expenses
or other sums due and payable hereunder for more than five (5) days after
written notice from Landlord, provided, however, that Tenant shall be entitled
to only one (1) such written notice per calendar year and thereafter no written
notice shall be required, Tenant shall pay to Landlord on demand a late charge
equal to five percent (5%) of such delinquent sum. The provision for such late
charge shall be in addition to all of Landlord's other rights and remedies
hereunder or at law and shall not be construed as a penalty.

                  5.       SECURITY DEPOSIT. Tenant shall pay the Security
Deposit under this Lease simultaneously with the execution and delivery of this
Lease to Landlord. The Security Deposit shall be held by Landlord as security
for the performance of Tenant's obligations under this Lease. The Security
Deposit is not an advance rental deposit or a measure of Landlord's damages in
case of Tenant's default. Upon each occurrence of an Event of Default
(hereinafter defined), Landlord may use all or part of the Security Deposit to
pay delinquent payments due under this Lease, and the cost of any damage,
injury, expense or liability caused by such Event of Default, without

                                       4

<PAGE>

prejudice to any other remedy provided herein or provided by law. Tenant shall
pay Landlord on demand the amount that will restore the Security Deposit to its
original amount. Landlord's obligation respecting the Security Deposit is that
of a debtor, not a trustee; no interest shall accrue thereon. The Security
Deposit shall be the property of Landlord, but shall be paid to Tenant within
thirty (30) days after the expiration or earlier termination of the Lease Term,
after first deducting any amounts owed for unpaid monetary obligations or
chargeable for other unperformed obligations of Tenant under this Lease.
Landlord shall be released from any obligation with respect to the Security
Deposit upon transfer of this Lease and the Premises to a person or entity
assuming Landlord's obligations under this Lease, including this Paragraph 5.

                  6.       OPERATING EXPENSE PAYMENTS. (a) During each month of
the Lease Term, commencing on the first day of the fourth (4th) month after the
Rent Commencement Date, on the same date that Base Rent is due, Tenant shall pay
to Landlord an amount equal to 1/12 of the annual cost, as estimated by Landlord
from time to time, of Tenant's Proportionate Share (hereinafter defined) of
Operating Expenses for the Project. Payments thereof for any fractional calendar
month shall be prorated.

                  (b)      The term "Operating Expenses" means all costs and
expenses incurred by Landlord with respect to the ownership, maintenance, repair
and operation of the Project including, but not limited to costs of: common area
utilities; maintenance, repair and replacement of all portions of the Project
(except that Landlord is responsible for all costs and expenses for replacement
of the roof and parking areas as provided in Paragraph 10, Tenant being
responsible only for Tenant's Proportionate Share of the cost of roof and
parking area repairs), including without limitation, mowing, snow removal,
landscaping, and exterior painting; the cost of maintaining utility lines, fire
sprinklers and fire protection systems, exterior lighting and mechanical and
building systems serving the Building or Project; amounts paid to contractors
and subcontractors for work or services performed in connection with any of the
foregoing; fees payable to tax consultants and attorneys for consultation and
contesting taxes, environmental insurance or environmental management fees; the
cost of any insurance deductibles for insurance required to be maintained by
Landlord hereunder; reasonable property management fees payable to a property
manager, including any affiliate of Landlord, provided that such fees shall in
no event exceed three percent (3%) of gross revenues, or if there is no property
manager, an administration fee of fifteen percent (15%) of Operating Expenses
payable to Landlord; security services, if any; trash collection, sweeping and
removal; and additions or alterations made by Landlord to the Project or the
Building in order to comply with Legal Requirements first in effect after the
date of this Lease (other than those expressly required herein to be made by
Tenant) or to reduce Operating Expenses as reasonably determined by Landlord
provided that the cost of such additions or alterations that are required to be
capitalized for federal income tax purposes shall be amortized on a straight
line basis over a period equal to the lesser of the useful life thereof for
federal income tax purposes or ten (10) years and included in Operating Expenses
only to the extent of the amortized amount for the respective calendar year. In
addition, Operating Expenses shall include (i) Taxes (hereinafter defined) for
each calendar year during the Lease term, and (ii) the cost of premiums for
insurance maintained by Landlord for the Project for each calendar year during
the Lease term. If during any portion of the year for which Operating Expenses
are being computed, less than all of the Building was occupied by tenants, or
Landlord was not supplying all tenants with the services being supplied under
this Lease, actual Operating Expenses shall be extrapolated reasonably by
Landlord on an item by item basis to the estimated Operating Expenses that would
have been incurred if the Building were fully occupied for such Operating Year
and such services were being supplied to all tenants. In the event that Landlord
constructs an additional Building or other structure on the Project, Operating
Expenses under this Lease shall only include the portion of Project Operating
Expenses that are reasonably allocable to the Building, including, without
limitation, the Building's share of Taxes that are assessed against the entire
Project, taking into consideration the relative value of the Building and any
new building or structure constructed on the Project.

                  (c)      Notwithstanding the foregoing, Operating Expenses do
not include

                           (i)      Any cost or expense to the extent to which
         Landlord is paid or reimbursed (other than as a payment for Operating
         Expenses), including, but not necessarily limited to, (i) work or
         services performed for any tenant (including Tenant) at such tenant's
         cost, (ii) the cost of any item for which Landlord is paid or
         reimbursed by insurance, warranties, service contracts, condemnation
         proceeds or otherwise, (iii) increased insurance or taxes assessed
         specifically to any tenant of the Building, (iv) charges (including
         applicable taxes) for electricity, water and other utilities for which
         Landlord is entitled to reimbursement from any tenant, (v) the cost of
         any HVAC, janitorial or other services provided to Tenants on an
         extra-cost basis after regular

                                       5

<PAGE>

         business hours, and (vi) environmental management fees incurred for
         services required by Landlord's lender or because of another tenant or
         for which Landlord is indemnified by other tenants or third-parties;

                           (ii)     Salaries and bonuses of officers and
         executives of Landlord and administrative employees above the grade of
         property manager or building supervisor and Landlord's general
         overhead;

                           (iii)    The cost of any work or service performed on
         an extra-cost basis for any tenant of the building (including Tenant);

                           (iv)     The cost of any work or services performed
         for any other property other than the Building;

                           (v)      Interest on debt or principal amortization
         payments or any other payments on any mortgage or any other payments
         under any ground lease;

                           (vi)     Any fees, costs and commissions incurred in
         procuring or attempting to procure other tenants, including, but not
         necessarily limited to brokerage commissions, finder's fees, attorney's
         fees and expenses and entertainment cost and travel expenses and any
         costs of advertising or promotion of the Building;

                           (vii)    Any cost included in Operating Expenses
         representing an amount paid to a person, firm, corporation or other
         entity related to Landlord which is in excess of the amount which would
         have been paid on an arms-length basis in the absence of such
         relationship;

                           (viii)   Any costs of painting or decorating of any
         interior parts of the Building occupied or occupiable by tenants;

                           (ix)     Costs, expenses, depreciation or
         amortization for capital repairs and capital replacements required to
         be made by Landlord under Paragraph 10 of this Lease. The cost of any
         repairs or replacements which are classified as capital improvements
         under generally accepted accounting principles shall be amortized with
         interest over the lesser of the useful life of the improvement or ten
         (10) years and included in Operating Expenses only to the extent of the
         amortized amount for the respective calendar year.;

                           (x)      Any costs necessary to cure any violation of
         any law, ordinance or regulation applicable to the Building, existing
         as of the commencement date of this Lease or to remediate any release
         of Hazardous Materials on or about the Premises to the extent caused by
         Landlord, its agents or employees or to remediate any environmental
         condition existing as of the commencement date of this Lease, including
         the removal of, or other steps taken with respect to, asbestos located
         in the Building, unless such condition was caused by Tenant;

                           (xi)     Depreciation of the Building or any part
         thereof;

                           (xii)    Replacement or contingency reserves or any
         bad debt loss, rent loss or reserves for bad debts or rent loss;

                           (xiii)   Expenses for renovating any tenant's
         premises, including Tenant;

                           (xiv)    Legal or other professional fees relating to
         leasing, financing, tenant disputes or other services not related to
         the normal maintenance, cleaning, repair or protection of the Building;

                           (xv)     costs, expenses and fees relating to
         solicitation of, advertising for and entering into leases and other
         occupancy arrangements for space in the Building, including but not
         limited to legal fees, space planners' fees, real estate brokers'
         leasing commissions and advertising expenses;

                           (xvi)    costs of defending any lawsuits with any
         mortgagee (except as the actions of Tenant may be in issue), costs of
         selling, syndicating, financing, mortgaging or hypothecating any of
         Landlord's interest in the Building, costs of any disputes between
         Landlord and its employees (if any) not engaged in Building operation,
         disputes of Landlord with Building management, or outside fees paid in
         connection with disputes with other tenants or adjacent property
         owners; and

                                       6

<PAGE>

                           (xvii)   costs, expenses or judgments occasioned by
         casualty, injury or damage, to the extent that such costs, expenses or
         judgments are or are required to be covered by insurance to be
         maintained by Landlord under this Lease.

                  (d)      Landlord shall maintain books and records of
Operating Expenses for a period of two (2) years following the end of each
calendar year. Within ninety (90) days after the end of each year, Landlord
shall deliver to Tenant a year end reconciliation of Operating Expenses incurred
for such year. Within sixty (60) days following Tenant's receipt of such year
end reconciliation of Operating Expenses and upon ten (10) days' prior written
notice, so long as no Event of Default has occurred under this Lease, Tenant or
Tenant's independent certified public accountant (which accountant shall be
subject to Landlord's reasonable approval and shall not be compensated in whole
or in part on a contingency basis) shall have the right to audit Landlord's
books and records relating to the prior year's Operating Expenses at a mutually
convenient time at Landlord's local office, if one exists, or if none exists, at
Landlord's main offices. Tenant agrees to provide to Landlord copies of any and
all reports, summaries, conclusions, and other results of such audit within ten
(10) days following Tenant's receipt thereof. If the audit discloses that the
total amount invoiced to Tenant after year-end reconciliation for such year
exceeds the actual Operating Expenses and Landlord reasonably concurs with such
audit results, Landlord shall credit the amount of overpayment towards any
outstanding Base Rent, Operating Expenses or any other amounts due under this
Lease, and then to Tenant's next due payment of Operating Expenses, or if this
Lease has expired, Landlord shall promptly refund the same to Tenant. If such
audit discloses that the total amount invoiced to Tenant after year-end
reconciliation for such year is less than Tenant's Proportionate Share of
Operating Expenses, Tenant shall pay the same to Landlord within ten (10) days
after receipt of the audit results. Tenant and Tenant's accountant shall keep
the results of any such audit confidential as to all parties other than
Landlord, and shall enter into a commercially reasonable written confidentiality
agreement prior to conducting such audit at Landlord's request. For purposes of
calculating Tenant's Proportionate Share of Operating Expenses, a year shall
mean a calendar year except the first year, which shall begin on the
Commencement Date, and the last year, which shall end on the expiration of this
Lease.

                  (e)      Tenant's "Proportionate Share" shall be the
percentage set forth on the first page of this Lease as Tenant's Proportionate
Share as reasonably adjusted by Landlord in the future for changes in the
physical size of the Premises or the Building. The estimated Operating Expenses
for the Premises set forth on the first page of this Lease are only estimates
and Landlord makes no guaranty or warranty that such estimates will be accurate.

                  7.       UTILITIES. Tenant shall pay, commencing on the
Commencement Date, for all water, gas, electricity, heat, light, power,
telephone, sewer, sprinkler services, refuse and trash collection, and other
utilities and services used on the Premises, all maintenance charges for
utilities, and any storm sewer charges or other similar charges for utilities
imposed by any governmental entity or utility provider, together with any taxes,
penalties, surcharges or the like pertaining to Tenant's use of the Premises.
Tenant shall pay its share of all charges for jointly metered utilities based
upon consumption, as reasonably determined by Landlord without administrative
mark-ups. Tenant agrees to limit use of water and sewer for normal restroom use.
Tenant and Landlord acknowledge and agree that (i) a dedicated electric service
to the Premises exists that is separately metered by the electric utility
company; and Tenant shall pay for use of electricity directly to the electric
utility company; (ii) an existing gas service to the Premises will be submetered
by Landlord and Tenant shall pay to Landlord for its actual usage at the same
rate as is applicable to Landlord without administrative mark-ups; (iii) water
service is currently provided to the Premises and Tenant shall pay its
Proportionate Share of water usage in the Premises based upon the current use of
the Building and shall have the right to install at Tenant's expense a water
check meter; and (iv) an existing septic system is servicing the Building and
Tenant shall pay its Proportionate Share for use of the sewage treatment system
as part of Operating Expenses, but shall not be responsible for capital repairs
and hazardous waste clean-up costs of the sewage treatment system unless the
necessity for such capital repairs and hazardous waste clean-up costs is caused
by Tenant. No interruption or failure of utilities shall result in the
termination of this Lease or the abatement of rent; provided, however, that if
the interruption or cessation of utilities occurs or continues as a result of
the negligence or wrongful conduct of the Landlord or Landlord's agents,
servants, employees or contractors and the Premises are not usable by Tenant for
the conduct of Tenant's business as a result thereof, Base Rent and applicable
Operating Expenses shall be abated for the period which commences five (5)
business days after the date Tenant gives to Landlord written notice of such
interruption until such time as the utilities required for the conduct of
Tenant's business are restored provided, however, that if any part of the
Premises is reasonably useable for Tenant's normal business operations or if
Tenant conducts all or any part of its operations in any portion of the Premises
notwithstanding such interruption, then the

                                       7

<PAGE>

amount of each daily abatement of Base Rent and applicable Operating Expenses
shall only be proportionate to the nature and extent of the interruption of
Tenant's normal operations or ability to use the Premises.

                  8.       TAXES. Landlord shall pay all taxes, assessments and
governmental charges (collectively referred to as "Taxes") that either (a)
accrue against the Project during the Lease Term if such Taxes are payable in
advance, or (b) are assessed against the Project during the Lease Term if such
Taxes are payable in arrears, provided that if Landlord shall construct another
building or structure on the Project, taxes, assessments and governmental
charges under this Lease shall be limited to the amounts reasonably allocable to
the Building. Taxes shall be included as part of the Operating Expenses charged
to Tenant pursuant to Paragraph 6 hereof during each year of the Lease Term,
based upon Landlord's reasonable estimate of the amount of Taxes, and shall be
subject to reconciliation and adjustment pursuant to Paragraph 6 once the actual
amount of Taxes is known. Landlord may contest by appropriate legal proceedings
the amount, validity, or application of any Taxes or liens thereof and any costs
incurred in the successful prosecution of such contest may be included as part
of Taxes. All capital levies or other taxes assessed or imposed on Landlord upon
the rents payable to Landlord under this Lease and any franchise, excise,
transaction, sales or privilege tax, assessment, levy or charge measured by or
based, in whole or in part, upon such rents from the Premises and/or the Project
or any portion thereof shall be included as part of the Operating Expenses
charged to Tenant pursuant to Paragraph 6 hereof during each year of the Lease
Term, based upon Landlord's reasonable estimate of the amount of such taxes,
assessments, levies or charges and shall be subject to reconciliation and
adjustment pursuant to Paragraph 6 once the actual amount of such taxes,
assessments, levies or charges is known; provided, however, in no event shall
Tenant be liable for any net income taxes imposed on Landlord unless such net
income taxes are in substitution for any Taxes payable hereunder. If any such
tax or excise is levied or assessed directly against Tenant, then Tenant shall
be responsible for and shall pay the same at such times and in such manner as
the taxing authority shall require. Tenant shall be liable for all taxes levied
or assessed against any personal property or fixtures placed in the Premises,
whether levied or assessed against Landlord or Tenant, and if any such taxes are
levied or assessed against Landlord or Landlord's property and (a) Landlord pays
them or (b) the assessed value of Landlord's property is increased thereby and
Landlord pays the increased taxes, then Tenant shall pay to Landlord such taxes
within thirty (30) days after Landlord's request therefor.

                  9.       INSURANCE. (a) Landlord shall maintain all risk
property insurance covering the full replacement cost of the Building (excluding
foundations), less a commercially reasonable deductible if Landlord so chooses
and commercial general liability insurance in commercially reasonable amounts,
but in no event less than the amounts required to be carried by Tenant
hereunder. Landlord may, but is not obligated to, maintain such other insurance
and additional coverages as it may deem necessary, including, but not limited
to, flood insurance, and rent loss insurance. All such insurance shall be
included as part of the Operating Expenses charged to Tenant pursuant to
Paragraph 6 hereof. The Project or Building may be included in a blanket policy
(in which case the cost of such insurance allocable to the Project or Building
will be determined by Landlord based upon the insurer's cost calculations).
Tenant shall also reimburse Landlord for any increased premiums or additional
insurance which Landlord reasonably deems necessary as a result of Tenant's use
of the Premises provided that Landlord's insurer specifically identifies
Tenant's operations in the Premises as the cause of such increased premiums or
additional insurance.

                  (b)      Effective as of the earlier of: (1) the date Tenant
enters or occupies the Premises; or (2) the Commencement Date, and continuing
during the Lease Term, Tenant, at its expense, shall obtain and maintain in full
force the following insurance coverage: (i) all risk property insurance covering
the full replacement cost of all personal property and removable trade fixtures
installed or placed in the Premises by Tenant or for Tenant's benefit; (ii)
worker's compensation insurance with no less than the minimum limits required by
law; (iii) employer's liability insurance with such limits as required by law;
and (iv) commercial liability insurance, with a minimum limit of $1,000,000 per
occurrence and a minimum umbrella limit of $2,000,000, for a total minimum
combined general liability and umbrella limit of $3,000,000 for property damage,
personal injuries, or deaths of persons occurring in or about the Premises.
Landlord may from time to time require reasonable increases in any such limits
so as to maintain similar coverage to that customarily maintained by prudent
owners of comparable properties. The commercial liability policies shall name
Landlord and Landlord's agents as additional insureds, insure on an occurrence
and not a claims-made basis, be issued by insurance companies which are
reasonably acceptable to Landlord, not be cancelable unless thirty (30) days
prior written notice shall have been given to Landlord, and contain a
contractual liability endorsement. Any policy issued to Landlord providing
duplicate or similar coverage shall be deemed excess over Tenant's policies.
Such certificates

                                       8

<PAGE>

evidencing coverage shall be delivered to Landlord by Tenant at least ten (10)
days prior to the Commencement Date and at least fifteen (15) days prior to each
renewal of said insurance, provided, however, that at Landlord's request, Tenant
shall provide copies of the policies evidencing the coverage required herein. If
Tenant fails to comply with the foregoing insurance requirements or to deliver
to Landlord certificates evidencing the coverage required herein, Landlord, in
addition to any remedy available pursuant to this Lease or otherwise, may, but
shall not be obligated to, obtain such insurance and Tenant shall pay to
Landlord on demand the premium costs thereof, plus an administrative fee of
fifteen percent (15%) of the cost.

                  (c)      The all risk property insurance obtained by Landlord
and Tenant shall include a waiver of subrogation by the insurers and all rights
based upon an assignment from its insured, against Landlord or Tenant, their
officers, directors, employees, managers, agents, invitees and contractors, in
connection with any loss or damage thereby insured against. The failure of a
party to insure its property shall not void this waiver. Notwithstanding
anything to the contrary contained herein, Tenant hereby waives any claims
against Landlord, and its officers, directors, employees, managers, agents,
invitees and contractors for any loss or damage insured against or required to
be insured against hereunder (whether by self-insurance or otherwise),
regardless of whether the negligence or fault of Landlord caused such loss.
Landlord hereby waives any claims against Tenant, and its officers, directors,
employees, managers, agents, invitees and contractors for any loss or damage
insured against or required to be insured against hereunder to the extent
insurance proceeds are received therefor, regardless of whether the negligence
or fault of Tenant caused such loss; however, Landlord's waiver shall not apply
to any deductible amounts maintained by Landlord under its insurance.

                  10.      LANDLORD'S REPAIRS. This Lease is intended to be a
net lease; accordingly, Landlord's maintenance and repair obligations are
limited to the costs and expenses for replacement of the Building's roof and
parking areas and maintenance of the foundation piers and structural members of
the exterior walls, reasonable wear and tear and uninsured losses and damages
caused by Tenant, its agents, employees and contractors excluded. The term
"walls" as used in this Paragraph 10 shall not include windows, glass or plate
glass, doors or overhead doors, special store fronts, dock bumpers, dock plates
or levelers, or office entries, all of which shall be maintained by Tenant.
Tenant shall promptly give Landlord written notice of any repair required by
Landlord pursuant to this Paragraph 10, after which Landlord shall have a
reasonable opportunity to repair such item. Landlord shall also maintain in good
repair and condition the parking areas and other common areas of the Building
and the Project, including, but not limited to common utilities located outside
of the Premises, driveways, alleys, landscape and grounds surrounding the
Premises, the cost of such maintenance and repair to be paid in accordance with
Paragraph 6 hereof.

                  11.      TENANT'S REPAIRS. (a) Subject to Landlord's
obligation in this Lease, Tenant, at its sole expense, shall repair, replace and
maintain in good condition all portions of the Premises and all areas,
improvements and systems exclusively serving the Premises including, without
limitation, dock, dock equipment and loading areas, dock doors, plumbing, water,
and sewer lines located in the Premises, doors, ceilings, windows, interior
walls, and the interior side of demising walls, and heating, ventilation and air
conditioning systems, and other building and mechanical systems exclusively
serving the Premises. Such repair and replacements include capital expenditures
and repairs whose benefit may extend beyond the Term, provided, however, if
during the last two (2) years of the initial Lease Term, Tenant is required to
replace the HVAC system or mechanical and building systems exclusively serving
the Premises and such system has a useful life according to generally accepted
accounting standards that will extend beyond the term of this Lease, Landlord
shall reimburse Tenant within thirty (30) days after the date that Tenant
delivers to Landlord the certificate required under subsection (c) of this
Section 11 a fraction of Tenant's actual out-of-pocket costs of such system
replacement, the numerator of which shall equal the estimated useful life (in
years) of such system less the number of years remaining in the Lease Term
(including the Extension Term if applicable) subsequent to the installation of
such system, and the denominator of which shall be the estimated useful life (in
years) of such system. Maintenance and repair of the heating, ventilation and
air conditioning systems and other mechanical and building systems serving the
Premises, and any repairs to the roof, shall be at Tenant's expense pursuant to
maintenance service contracts entered into by Tenant. The scope of services and
contractors under such maintenance contracts shall be subject to Landlord's
prior written approval which shall not be unreasonably withheld or delayed.

                  (b)      In the event that any repair or maintenance
obligation required to be performed by Tenant hereunder may affect the
structural integrity of the Building (e.g., roof, foundation, structural members
of the exterior walls), prior to commencing any such repair, Tenant shall
provide Landlord with written notice of the necessary repair or maintenance and
a brief

                                       9

<PAGE>

summary of the structural component or components of the Building that may be
affected by such repair or maintenance. Within ten (10) business days after
Landlord's receipt of Tenant's written notice, Landlord shall have the right,
but not the obligation, to elect to cause such repair or maintenance to be
performed by Landlord, or a contractor selected and engaged by Landlord, but at
Tenant's sole cost and expense. The foregoing sentence is not intended to
obligate Tenant to pay for repairs or maintenance to those structural items
which are Landlord's responsibility pursuant to Paragraph 10 above, but shall
only require Tenant to pay for the repair and maintenance to such structural
components to the extent such repair or maintenance is necessitated due to the
performance of Tenant's repair and maintenance obligations pursuant to this
Paragraph 11.

                  (c)      Within the fifteen (15) day period prior to the
expiration or termination of this Lease, Tenant shall deliver to Landlord a
certificate from an engineer reasonably acceptable to Landlord certifying that
the hot water equipment and the HVAC system are then in good repair and working
order excepting reasonable wear and tear.

                  (d)      If Tenant fails to perform any repair or replacement
for which it is responsible, Landlord may perform such work and be reimbursed by
Tenant within twenty (20) days after demand therefor. Subject to Paragraphs 9
and 15, Tenant shall bear the full cost of any repair or replacement to any part
of the Building or Project that results from damage caused by Tenant, its
agents, contractors, or invitees and any repair that benefits only the Premises.

                  12.      TENANT-MADE ALTERATIONS AND TRADE FIXTURES. (a) Any
alterations, additions, or improvements made by or on behalf of Tenant to the
Premises ("Tenant-Made Alterations") shall be subject to Landlord's prior
written consent, which shall not be unreasonably withheld or delayed, and shall
be made at Tenant's sole cost and expense. Tenant shall cause, at its expense,
all Tenant-Made Alterations to comply with insurance requirements and with Legal
Requirements and shall construct at its expense any alteration or modification
required by Legal Requirements as a result of any Tenant-Made Alterations.
Landlord shall provide to Tenant all specifications and CAD drawings in
Landlord's possession for the Building and the Premises, the existing fire alarm
and fire sprinkler system, and the card access, HVAC and electrical systems.
Notwithstanding the foregoing, Tenant may make non-structural, interior
Tenant-Made Alterations without Landlord's consent provided (i) Tenant provides
written notice to Landlord prior to the commencement of such non-structural,
interior Tenant-Made Alterations; (ii) the aggregate cost of all Tenant-Made
Alterations does not exceed $25,000.00 for any twelve (12) month period; and
(iii) Tenant secures all permits, licenses and approvals required to construct
and/or install such Tenant-Made Alterations and provides to Landlord a copy of
the same. Tenant shall not have the right, without Landlord's prior written
consent, which shall not be unreasonably withheld or delayed, to make any
Tenant-Made Alterations that (x) affect the structural components or exterior of
the Building (including without limitation, roof membrane, the dock and loading
areas, truck doors, entry doors or windows), or the mechanical, plumbing or
building systems of the Building, or (y) are visible from outside the Premises
or Building.

                  (b)      All Tenant-Made Alterations shall be constructed in a
good and workmanlike manner by contractors reasonably acceptable to Landlord and
only good grades of materials shall be used. All plans and specifications for
any Tenant-Made Alterations shall be submitted to Landlord for its approval,
which shall not be unreasonably withheld or delayed. Landlord may monitor
construction of the Tenant-Made Alterations. Tenant shall reimburse Landlord for
its actual, reasonable third-party costs in reviewing plans and specifications
and in monitoring construction not to exceed $2,000.00. Landlord's right to
review plans and specifications and to monitor construction shall be solely for
its own benefit, and Landlord shall have no duty to see that such plans and
specifications or construction comply with applicable laws, codes, rules and
regulations.

                  (c)      Tenant shall provide Landlord with the identities and
mailing addresses of all persons performing work or supplying materials, prior
to beginning such construction, and Landlord may post on and about the Premises
notices of non-responsibility pursuant to applicable law. Tenant shall furnish
security or make other arrangements reasonably satisfactory to Landlord to
assure payment for the completion of all work free and clear of liens (it being
agreed by Landlord that Tenant obtaining lien waivers from all contractors
engaged by Tenant to perform Tenant's initial fit-out and racking work shall
satisfy this requirement) and provide certificates of insurance for worker's
compensation and other coverage in amounts and from an insurance company
satisfactory to Landlord protecting Landlord against liability for personal
injury or property damage during construction. Upon completion of any
Tenant-Made Alterations, Tenant shall deliver to Landlord sworn statements
setting forth the names of all contractors and subcontractors who did work on
the Tenant-Made Alterations and final lien waivers from all such contractors and
subcontractors.

                                       10

<PAGE>

                  (d)      Upon surrender of the Premises, all Tenant-Made
Alterations and any leasehold improvements constructed by Landlord or Tenant
shall remain on the Premises as Landlord's property, except to the extent
Landlord requires removal at Tenant's expense of any such items or Landlord and
Tenant have otherwise agreed in writing in connection with Landlord's consent to
any Tenant-Made Alterations. Prior to the expiration or termination of this
Lease, Tenant, at its sole expense, shall repair any and all damage caused by
such removal.

                  (e)      Tenant, at its own cost and expense and without
Landlord's prior approval, may erect such racks, shelves, bins, machinery and
trade fixtures (collectively "Trade Fixtures") in the ordinary course of its
business provided that such items do not alter the basic character of the
Premises, do not overload or damage the Premises, and may be removed without
injury to the Premises, and the construction, erection, and installation thereof
complies with all Legal Requirements and with Landlord's requirements set forth
above. Prior to the expiration or termination of this Lease, Tenant, at its sole
expense, shall remove its Trade Fixtures and shall repair any and all damage
caused by such removal.

                  (f)      Landlord shall allow Tenant to use the card access
system hardware, fiber, CATS and CAT3 data and voice wiring and associated patch
panels and plate, HVAC equipment and controls, fire alarm, PA system and the
built-in reception area furniture currently on the Premises, in their "as is"
condition, at no additional cost to Tenant, provided, however, that Tenant's
right to use the existing furniture, furnishings, the existing telephone system
(switch, telephone sets, etc.) and card access system software is subject to the
Trustee's rights under the involuntary bankruptcy filing against Folio, Inc.
filed in United States Bankruptcy Court, Worcester, Massachusetts Docket Number
02-47640 to claim and remove such items. Tenant acknowledges and agrees that
Landlord has made no representations or warranties of any kind whatsoever with
respect to the condition or fitness for any particular purpose of such fixtures,
furniture and equipment and that Tenant, and not Landlord, shall be responsible
at Tenant's sole cost and expense for any repairs or maintenance required in
connection therewith.

                  13.      SIGNS. All signs, decorations, advertising media,
blinds, draperies and other window treatment or bars or other security
installations visible from outside the Premises shall be subject to Landlord's
prior written approval and shall conform in all respects to Landlord's
requirements. Tenant shall not make any changes to the exterior of the Premises,
install any exterior lights, decorations, balloons, flags, pennants, banners, or
painting, or erect or install any signs, windows or door lettering, placards,
decorations, or advertising media of any type which can be viewed from the
exterior of the Premises, without Landlord's prior written consent which shall
not be unreasonably withheld or delayed. Landlord shall not be required to
notify Tenant of whether it consents to any sign until it (a) has received
detailed, to-scale drawings thereof specifying design, material composition,
color scheme, and method of installation, and (b) has had a reasonable
opportunity to review them. Upon surrender or vacation of the Premises, Tenant
shall have removed Tenant's signs and repair, paint, and/or replace the building
facia surface to which its signs are attached. Tenant shall obtain all
applicable governmental permits and approvals for sign and exterior treatments.
Notwithstanding the foregoing, Landlord shall remove all of the previous
tenant's existing signage prior to the Commencement Date and Tenant shall be
permitted to install new signs on the existing exterior sign mount and on the
exterior of the Premises subject to the requirements hereunder and under the
Town of Northborough By-Laws.

                  14.      PARKING. Tenant shall be entitled to park
automobiles, and trailers overnight in the designated areas for trailer parking,
in common with other tenants of the Project in those areas designated for
nonreserved parking; provided, however, that Landlord will designate ten (10)
parking spaces in proximity with the Premises' entrance as "visitor parking
spaces", all as shown on the Parking Plan attached hereto. Landlord may allocate
parking spaces among Tenant and other tenants in the Project at Landlord's
reasonable discretion. Landlord shall not be responsible for enforcing Tenant's
parking rights against any third parties.

                  15.      RESTORATION. (a) If at any time during the Lease Term
the Premises are damaged by a fire or other casualty, Landlord shall notify
Tenant within thirty (30) days after such damage as to the amount of time
Landlord reasonably estimates it will take to restore the Premises. If the
restoration time is estimated to exceed 180 days from the date Landlord receives
all permits, approvals, and licenses required to begin reconstruction, either
Landlord or Tenant may elect to terminate this Lease upon notice to the other
party given no later than thirty (30) days after Landlord's notice. If neither
party elects to terminate this Lease or if Landlord estimates that restoration
will take 180 days or less, then, subject to receipt of sufficient insurance
proceeds, Landlord shall promptly restore the Premises excluding Tenant's
personal property and trade fixtures, subject to delays arising from the
collection of insurance proceeds or from Force Majeure

                                       11

<PAGE>

events provided, however if, despite Landlord's reasonable efforts, such repairs
are not actually completed within one hundred eighty (180) days from
commencement of the repairs, then Landlord shall use commercially reasonable
efforts to relocate or find replacement space for the tenant in the Project
until such repairs are completed, but if Landlord is unable to do so within such
one hundred eighty (180) day period, then Tenant shall have the right to
terminate this Lease within 30 days after the expiration of such one hundred
eighty (180) day period. Tenant at Tenant's expense shall promptly perform after
completion of Landlord's restoration and delivery of the Premises to Tenant,
subject to delays arising from the collection of insurance proceeds, or from
Force Majeure events, all repairs or restoration not required to be done by
Landlord and shall promptly re-enter the Premises and commence doing business in
accordance with this Lease. Notwithstanding the foregoing, either party may
terminate this Lease upon thirty (30) days written notice to the other if the
Premises are damaged during the last year of the Lease Term and Landlord
reasonably estimates that it will take more than thirty (30) days to repair such
damage.

                  (b)      If the Premises are destroyed or substantially
damaged by any peril not covered by the insurance required to be maintained by
Landlord or any Landlord's mortgagee requires that insurance proceeds be applied
to the indebtedness secured by its mortgage (defined hereinafter), Landlord may
terminate this Lease by delivering written notice of termination to Tenant
within thirty (30) days after such destruction or damage or such requirement is
made known by any such Landlord's mortgagee, as applicable, whereupon all rights
and obligations hereunder shall cease and terminate, except for any liabilities
of Tenant which accrued prior to Lease termination.

                  (c)      If such damage or destruction is caused by the act(s)
or omission(s) of Tenant, its employees, agents or contractors, Tenant shall pay
to Landlord with respect to any damage to the Premises and/or Project the amount
of the commercially reasonable deductible under Landlord's insurance policy
within ten (10) days after presentment of Landlord's invoice. Base Rent and
Operating Expenses shall be abated for the period of repair and restoration in
the proportion which the area of the Premises, if any, which is not usable by
Tenant bears to the total area of the Premises. Such abatement shall be the sole
remedy of Tenant, and except as provided herein, Tenant waives any right to
terminate the Lease by reason of damage or casualty loss.

                  16.      CONDEMNATION. If any part of the Premises or the
Project should be taken for any public or quasi-public use under governmental
law, ordinance, or regulation, or by right of eminent domain, or by private
purchase in lieu thereof (a "Taking" or "Taken"), and (a) the Taking would
prevent or materially interfere with Tenant's use of the Premises, (b) in
Landlord's judgment would materially interfere with or impair its ownership or
operation of the Project or (c) as a result of such Taking, Landlord's mortgagee
accelerates the payment of any indebtedness securing all or a portion of the
Project, then upon written notice by Landlord this Lease shall terminate and
Base Rent shall be apportioned as of said date. If part of the Premises shall be
Taken, and this Lease is not terminated as provided above, the Base Rent payable
hereunder during the unexpired Lease Term shall be reduced to such extent as may
be fair and reasonable under the circumstances, and Landlord shall restore the
Premises to its condition prior to the Taking; provided, however, Landlord's
obligation to so restore the Premises shall be limited to the award Landlord
receives in respect of such Taking that is not required to be applied to the
indebtedness secured by a mortgage. In the event of any such Taking, Landlord
shall be entitled to receive the entire price or award from any such Taking
without any payment to Tenant, and Tenant hereby assigns to Landlord Tenant's
interest, if any, in such award. Tenant shall have the right, to the extent that
same shall not diminish Landlord's award, to make a separate claim against the
condemning authority (but not Landlord) for such compensation as may be
separately awarded or recoverable by Tenant for moving expenses and damage to
Tenant's Trade Fixtures, if a separate award for such items is made to Tenant.

                  17.      ASSIGNMENT AND SUBLETTING. (a) Without Landlord's
prior written consent, which shall not be unreasonably withheld or delayed,
Tenant shall not assign this Lease or sublease the Premises or any part thereof
or mortgage, pledge, or hypothecate its leasehold interest or grant any
concession or license within the Premises (each being a "Transfer") and any
attempt to do any of the foregoing shall be void and of no effect. For purposes
of this Paragraph 17, a transfer of more than fifty percent (50%) of the
ownership interests of Tenant shall be deemed a Transfer of this Lease unless
such ownership interests are publicly traded. Notwithstanding the above, Tenant
may assign or sublet the Premises, or any part thereof, to any entity
controlling Tenant, controlled by Tenant or under common control with Tenant (a
"Tenant Affiliate"), without the prior written consent of Landlord; provided,
however, Tenant shall provide at least ten (10) days written notice prior to
assigning this Lease to, or entering into any sublease with, any Tenant
Affiliate. Tenant shall reimburse Landlord for all of Landlord's reasonable
out-of-pocket expenses in connection with any Transfer, other than to a Tenant
Affiliate. Upon Landlord's receipt of Tenant's written

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<PAGE>

notice of a desire to assign this Lease or sublet more than fifty percent (50%)
of the Premises (other than to a Tenant Affiliate), Landlord may, by giving
written notice to Tenant within thirty (30) days after receipt of Tenant's
notice, terminate this Lease with respect to the space described in Tenant's
notice, as of the date specified in Tenant's notice for the commencement of the
proposed assignment or sublease. Landlord agrees not to unreasonably withhold or
condition its consent to a proposed assignment of this Lease or subletting of
the Premises to a party which (i) is, in the reasonable judgment of Landlord, of
a character or reputation or is engaged in a business which would not be harmful
to the image and reputation of the Project and can reasonably be expected to
perform the obligations of "Tenant" hereunder; (ii) will not use the Premises in
a manner that would conflict with any exclusive use agreement or other similar
agreement entered into by Landlord with any other tenant of the Project; and
(iii) proposes to use the Premises so as to not materially increase the
pedestrian or vehicular traffic to the Premises or the Project. Without limiting
the foregoing, Landlord may withhold its consent (and it shall not be deemed
unreasonable), to any such assignment or subletting of the Premises to any party
(A) which is a governmental entity (or subdivision or agency thereof), (B) would
use the Premises, in whole or in part, for other than Tenant's permitted use
hereunder, (C) which is a prospective tenant that has delivered to, or received
from, Landlord a written proposal to lease space in the Project before Tenant or
its agent contacts such party, (D) which is an occupant of the Project or
another project owned by Landlord at the time of such request and Landlord has
space available to lease in the Project or in another project owned by Landlord,
or (E) which intends to use, store, or generate any Hazardous Materials in, on
or about the Premises. Landlord's agreement not to unreasonably withhold its
consent to a sublease shall apply only to the first sublease under this Lease,
and Landlord may withhold its consent in its sole discretion to any further or
subsequent sublease by any subtenant.

         Provided no Event of Default has occurred under this Lease, Tenant may,
without Landlord's prior written consent, but with at least fifteen (15) days
prior written notice to Landlord, assign this Lease to an entity into which
Tenant is merged or consolidated or to an entity to which substantially all of
Tenant's assets are transferred or a controlling share of Tenant's stock is
transferred, provided (x) such merger, consolidation, or transfer of assets or
stock is for a good business purpose and not principally for the purpose of
transferring Tenant's leasehold estate, and (y) the assignment or successor
entity has a net worth calculated according to generally accepted accounting
principles at least equal to the net worth of Tenant immediately prior to such
merger, consolidation, or transfer.

                  (b)      Notwithstanding any Transfer, Tenant and any
guarantor or surety of Tenant's obligations under this Lease shall at all times
remain fully responsible and liable for the payment of the rent and for
compliance with all of Tenant's other obligations under this Lease (regardless
of whether Landlord's approval has been obtained for any such Transfer). In the
event that the rent due and payable by a sublessee or assignee (or a combination
of the rental payable under such sublease or assignment plus any bonus or other
consideration therefor or incident thereto) exceeds the rental payable under
this Lease after first deducting Tenant's expenses to obtain such assignment or
sublease, then Tenant shall be bound and obligated to pay Landlord as additional
rent hereunder fifty percent (50%) of such excess rental and other excess
consideration within thirty (30) days following receipt thereof by Tenant.

                  (c)      If this Lease is assigned or if the Premises is
subleased (whether in whole or in part) or in the event of the mortgage, pledge,
or hypothecation of Tenant's leasehold interest or grant of any concession or
license within the Premises or if the Premises be occupied in whole or in part
by anyone other than Tenant, then upon a default by Tenant hereunder Landlord
may collect rent from the assignee, sublessee, mortgagee, pledgee, party to whom
the leasehold interest was hypothecated, concessionee or licensee or other
occupant and, except to the extent set forth in the preceding subparagraph,
apply the amount collected to the next rent payable hereunder; and all such
rentals collected by Tenant shall be held in trust for Landlord and immediately
forwarded to Landlord. No such transaction or collection of rent or application
thereof by Landlord, however, shall be deemed a waiver of these provisions or a
release of Tenant from the further performance by Tenant of its covenants,
duties, or obligations hereunder. Any approved assignment or sublease shall be
expressly subject to the terms and conditions of this Lease. Landlord's consent
to any Transfer shall not waive Landlord's rights as to any subsequent
Transfers.

                  18.      INDEMNIFICATION. (a) Tenant agrees to indemnify,
defend (with counsel reasonably acceptable to Landlord) and hold harmless
Landlord, and Landlord's agents, employees and contractors, from and against any
and all claims, demands, losses, liabilities, causes of action, suits,
judgments, damages, costs and expenses (including attorneys' fees) arising from
any occurrence on the Premises, the use and occupancy of the Premises, or from
any activity, work, or thing done, permitted or suffered by Tenant in or about
the Premises or due to any other

                                       13

<PAGE>

act or omission of Tenant, its subtenants, assignees, invitees, employees,
contractors and agents, or from Tenant's failure to perform its obligations
under this Lease (other than any loss arising from the sole or gross negligence
or willful misconduct of Landlord or its agents), EVEN THOUGH CAUSED OR ALLEGED
TO BE CAUSED BY THE JOINT, COMPARATIVE, OR CONCURRENT NEGLIGENCE OR FAULT OF
LANDLORD OR ITS AGENTS, AND EVEN THOUGH ANY SUCH CLAIM, CAUSE OF ACTION, OR SUIT
IS BASED UPON OR ALLEGED TO BE BASED UPON THE STRICT LIABILITY OF LANDLORD OR
ITS AGENTS. THIS INDEMNITY PROVISION IS INTENDED TO THE EXTENT PERMITTED BY
APPLICABLE LAW TO INDEMNIFY LANDLORD AND ITS AGENTS AGAINST THE CONSEQUENCES OF
THEIR OWN NEGLIGENCE OR FAULT AS PROVIDED ABOVE WHEN LANDLORD OR ITS AGENTS ARE
JOINTLY, COMPARATIVELY, OR CONCURRENTLY NEGLIGENT WITH TENANT. This indemnity
provision shall survive termination or expiration of this Lease. The furnishing
of insurance required hereunder shall not be deemed to limit Tenant's
obligations under this Paragraph 18.

                  (b)      Landlord agrees to indemnify, defend and hold
harmless Tenant, and Tenant's agents, employees and contractors, from and
against any and all claims, demands, losses, liabilities, causes of action,
suits, judgments, damages, costs and expenses (including reasonable attorneys'
fees) resulting from claims by third parties for injuries to any person and
damage to or loss of property occurring in or about the Project and arising
solely from the negligence or intentional misconduct of Landlord, its employees,
contractors, or agents.

This indemnity provision shall survive termination or expiration of this Lease.
The furnishing of insurance required hereunder shall not be deemed to limit
Landlord's obligations under this Paragraph 18.

                  19.      INSPECTION AND ACCESS. Landlord and its agents,
representatives, and contractors may enter the Premises at any reasonable time
upon reasonable prior notice to inspect the Premises and to make such repairs as
may be required or permitted pursuant to this Lease and for any other business
purpose. Landlord and Landlord's representatives may enter the Premises upon
reasonable prior notice during business hours for the purpose of showing the
Premises to prospective purchasers or, during the last nine (9) months of the
Lease Term, to prospective tenants. Landlord may erect a suitable sign on the
Project stating that the Project is available for sale. During the last nine (9)
months of the Lease Term, Landlord may erect a suitable sign on the Project
stating the Premises are available to let, but only in the location designated
for such a sign on the Parking Plan attached hereto. Landlord may grant
easements, make public dedications, designate common areas and create
restrictions on or about the Premises, provided that no such easement,
dedication, designation or restriction interferes with Tenant's use or occupancy
of the Premises. At Landlord's request, Tenant shall execute such instruments as
may be necessary for such easements, dedications or restrictions.

                  20.      QUIET ENJOYMENT. If Tenant shall perform all of the
covenants and agreements herein required to be performed by Tenant, Tenant
shall, subject to the terms of this Lease, at all times during the Lease Term,
have peaceful and quiet enjoyment of the Premises against any person claiming
by, through or under Landlord, but not otherwise.

                  21.      SURRENDER. No act by Landlord shall be an acceptance
of a surrender of the Premises, and no agreement to accept a surrender of the
Premises shall be valid unless it is in writing and signed by Landlord. Upon
termination of the Lease Term or earlier termination of Tenant's right of
possession, Tenant shall surrender the Premises to Landlord in the same
condition as received, broom clean, ordinary wear and tear and casualty loss and
condemnation covered by Paragraphs 15 and 16 excepted. Any trade fixtures, and
personal property not so removed by Tenant as permitted or required herein shall
be deemed abandoned and may be stored, removed, and disposed of by Landlord at
Tenant's expense, and Tenant waives all claims against Landlord for any damages
resulting from Landlord's retention and disposition of such property. All
obligations of Tenant hereunder not fully performed as of the termination of the
Lease Term shall survive the termination of the Lease Term, including without
limitation, indemnity obligations, payment obligations with respect to Operating
Expenses and all obligations concerning the condition and repair of the
Premises.

                  22.      HOLDING OVER. If Tenant fails to vacate the Premises
after the termination of the Lease Term, Tenant shall be a tenant at will or at
sufferance, and Tenant shall pay, in addition to any other rent or other sums
then due Landlord, a daily base rental equal to 150% of the Base Rent in effect
on the expiration or termination date. Tenant shall also be liable for all
Operating Expenses incurred during such holdover period. In addition, Tenant
shall be liable for all damages (including attorneys' fees and expenses) of
whatever type (including consequential damages) incurred by Landlord as a result
of such holding over. No holding over by Tenant,

                                       14

<PAGE>

whether with or without consent of Landlord, shall operate to extend this Lease
except as otherwise expressly provided, and this Paragraph 22 shall not be
construed as consent for Tenant to retain possession of the Premises.

                  23.      EVENTS OF DEFAULT. Each of the following events shall
be an event of default ("Event of Default") by Tenant under this Lease:

                  (i)      Tenant shall fail to pay any installment of Base Rent
or any other payment required herein when due, and such failure shall continue
for a period of five (5) days or more after Landlord has given written notice to
Tenant that such payment is past due, provided that such notice from Landlord
shall be in lieu of, and not in addition to, any notice of default required by
applicable law; and provided, further, Landlord shall be obligated to give only
two (2) such notices per twelve (12) month period, with subsequent payment
default to be an Event of Default if such failure to pay shall continue for a
period of five (5) days or more from the date such payment is due (without any
notice).

                  (ii)     Tenant or any guarantor or surety of Tenant's
obligations hereunder shall (A) make a general assignment for the benefit of
creditors; (B) commence any case, proceeding or other action seeking to have an
order for relief entered on its behalf as a debtor or to adjudicate it a
bankrupt or insolvent, or seeking reorganization, arrangement, adjustment,
liquidation, dissolution or composition of it or its debts or seeking
appointment of a receiver, trustee, custodian or other similar official for it
or for all or of any substantial part of its property (collectively a
"proceeding for relief"); (C) become the subject of any proceeding for relief
which is not dismissed within sixty (60) days of its filing or entry; or (D) die
or suffer a legal disability (if Tenant, guarantor, or surety is an individual)
or be dissolved or otherwise fail to maintain its legal existence (if Tenant,
guarantor or surety is a corporation, partnership or other entity).

                  (iii)    Any insurance required to be maintained by Tenant
pursuant to this Lease shall be cancelled or terminated or shall expire or shall
be reduced or materially changed, except, in each case, as permitted in this
Lease.

                  (iv)     There shall occur any assignment, subleasing or other
transfer of Tenant's interest in or with respect to this Lease except as
otherwise permitted in this Lease.

                  (v)      Tenant shall fail to discharge or bond over any lien
placed upon the Premises in violation of this Lease within thirty (30) days
after any such lien or encumbrance is filed against the Premises.

                  (vi)     Tenant shall fail to execute any instrument of
subordination or attornment or any estoppel certificate within the time periods
set forth in Paragraphs 27 and 29 respectively following Landlord's request for
the same.

                  (vii)    Tenant shall breach any of the requirements of
Paragraph 30 and such failure shall continue for a period of five (5) days or
more after notice from Landlord to Tenant unless such default is not reasonably
susceptible of cure within five (5) days, then after such period of time as is
reasonably necessary to cure such default, not to exceed ninety (90) days so
long as Tenant promptly commences such cure within said five (5) day period and
diligently prosecutes the same to completion.

                  (viii)   Tenant shall fail to comply with any provision of
this Lease other than those specifically referred to in this Paragraph 23, and
except as otherwise expressly provided herein, such default shall continue for
more than thirty (30) days after Landlord shall have given Tenant written notice
of such default, unless such default is not reasonably susceptible of cure
within thirty (30) days, then after such period of time as is reasonably
necessary to cure such default, not to exceed ninety (90) days so long as Tenant
promptly commences such cure within said thirty (30) day period and diligently
prosecutes the same to completion.

                  24.      LANDLORD'S REMEDIES. (a) Upon each occurrence of an
Event of Default and so long as such Event of Default shall be continuing,
Landlord may at any time thereafter at its election: terminate this Lease or
Tenant's right of possession, (but Tenant shall remain liable as hereinafter
provided) and/or pursue any other remedies at law or in equity. Upon the
termination of this Lease or termination of Tenant's right of possession, it
shall be lawful for

                                       15

<PAGE>

Landlord, without formal demand or notice of any kind, to re-enter the Premises
by summary dispossession proceedings or any other action or proceeding
authorized by law and to remove Tenant and all persons and property therefrom.
If Landlord re-enters the Premises, Landlord shall have the right to keep in
place and use, or remove and store, all of the furniture, fixtures and equipment
at the Premises.

                  (b)      If Landlord terminates this Lease, Landlord may
recover from Tenant the sum of: all Base Rent and all other amounts accrued
hereunder to the date of such termination; the cost of reletting the whole or
any part of the Premises, including without limitation brokerage fees and/or
leasing commissions incurred by Landlord, and costs of removing and storing
Tenant's or any other occupant's property, repairing, altering, remodeling, or
otherwise putting the Premises into condition acceptable to a new tenant or
tenants, and all reasonable expenses incurred by Landlord in pursuing its
remedies, including reasonable attorneys' fees and court costs; and an amount in
cash equal to the then present value of the Base Rent and other amounts payable
by Tenant under this Lease as would otherwise have been required to be paid by
Tenant to Landlord during the period following the termination of this Lease
measured from the date of such termination to the expiration date stated in this
Lease less the then present value of the fair net rental value of the Premises
for the same period taking all market factors into account, including vacancy
rates. Such present value shall be calculated at a discount rate equal to the
90-day U.S. Treasury bill rate at the date of such termination.

                  (c)      If Landlord terminates Tenant's right of possession
(but not this Lease), Landlord shall use commercially reasonable efforts to
relet the Premises for the account of Tenant for such rent and upon such terms
as shall be satisfactory to Landlord without thereby releasing Tenant from any
liability hereunder and without demand or notice of any kind to Tenant;
provided, however, that hiring a reputable leasing broker to lease the premises
and cooperating in good faith with such broker shall satisfy the requirement
that Landlord use commercially reasonable efforts to relet and (i) Landlord
shall not be obligated to accept any prospective tenant proposed by Tenant,
unless such proposed tenant meets all of Landlord's leasing criteria and (ii)
Landlord shall have the right to lease any other space controlled by Landlord
first. For the purpose of such reletting Landlord is authorized to make any
repairs, changes, alterations, or additions in or to the Premises as Landlord
deems reasonably necessary or desirable. If the Premises are not relet, then
Tenant shall pay to Landlord as damages a sum equal to the amount of the rental
reserved in this Lease for such period or periods, plus the cost of recovering
possession of the Premises (including attorneys' fees and costs of suit), the
unpaid Base Rent and other amounts accrued hereunder at the time of
repossession, and the costs incurred in any attempt by Landlord to relet the
Premises. If the Premises are relet and a sufficient sum shall not be realized
from such reletting [after first deducting therefrom, for retention by Landlord,
the unpaid Base Rent and other amounts accrued hereunder at the time of
reletting, the cost of recovering possession (including attorneys' fees and
costs of suit), all of the costs and expense of repairs, changes, alterations,
and additions, the expense of such reletting (including without limitation
brokerage fees and leasing commissions) and the cost of collection of the rent
accruing therefrom] to satisfy the rent provided for in this Lease to be paid,
then Tenant shall immediately satisfy and pay any such deficiency. Any such
payments due Landlord shall be made upon demand therefor from time to time and
Tenant agrees that Landlord may file suit to recover any sums falling due from
time to time. Notwithstanding any such reletting without termination, Landlord
may at any time thereafter elect in writing to terminate this Lease for such
previous breach.

                  (d)      Exercise by Landlord of any one or more remedies
hereunder granted or otherwise available shall not be deemed to be an acceptance
of surrender of the Premises and/or a termination of this Lease by Landlord,
whether by agreement or by operation of law. Any law, usage, or custom to the
contrary notwithstanding, Landlord shall have the right at all times to enforce
the provisions of this Lease in strict accordance with the terms hereof; and the
failure of Landlord at any time to enforce its rights under this Lease strictly
in accordance with same shall not be construed as having created a custom in any
way or manner contrary to the specific terms, provisions, and covenants of this
Lease or as having modified the same. Tenant and Landlord further agree that
forbearance or waiver by Landlord to enforce its rights pursuant to this Lease
or at law or in equity, shall not be a waiver of Landlord's right to enforce one
or more of its rights in connection with any subsequent default. A receipt by
Landlord of rent or other payment with knowledge of the breach of any covenant
hereof shall not be deemed a waiver of such breach, and no waiver by Landlord of
any provision of this Lease shall be deemed to have been made unless expressed
in writing and signed by Landlord. To the greatest extent permitted by law,
Tenant waives the service of notice of Landlord's intention to re-enter or to
institute legal proceedings to that end, and also waives all right of redemption
in case Tenant shall be dispossessed by a judgment or by warrant of any court or
judge. The terms "enter," "re-enter," "entry" or "re-entry," as used in this
Lease, are not restricted to their technical legal meanings. Any reletting of
the

                                       16

<PAGE>

Premises shall be on such terms and conditions as Landlord in its sole
discretion may determine (including without limitation a term different than the
remaining Lease Term, rental concessions, alterations and repair of the
Premises, lease of less than the entire Premises to any tenant and leasing any
or all other portions of the Project before reletting the Premises). Landlord
shall not be liable, nor shall Tenant's obligations hereunder be diminished
because of, Landlord's failure to relet the Premises or collect rent due in
respect of such reletting.

                  25.      TENANT'S REMEDIES/LIMITATION OF LIABILITY. Landlord
shall not be in default hereunder unless Landlord fails to perform any of its
obligations hereunder within thirty (30) days after written notice from Tenant
specifying such failure (unless such performance will, due to the nature of the
obligation, require a period of time in excess of thirty (30) days, then after
such period of time as is reasonably necessary). All obligations of Landlord
hereunder shall be construed as covenants, not conditions; and Tenant may not
terminate this Lease for breach of Landlord's obligations hereunder, provided,
however, that the foregoing shall not be deemed a waiver by Tenant of any of its
rights at law or in equity. All obligations of Landlord under this Lease will be
binding upon Landlord only during the period of its ownership of the Premises
and not thereafter. The term "Landlord" in this Lease shall mean only the owner,
for the time being of the Premises, and in the event of the transfer by such
owner of its interest in the Premises, such owner shall thereupon be released
and discharged from all obligations of Landlord thereafter accruing, but such
obligations shall be binding during the Lease Term upon each new owner for the
duration of such owner's ownership. Any liability of Landlord under this Lease
or arising out of the relationship between Landlord and Tenant shall be limited
solely to Landlord's interest in the Building and the proceeds, rent and other
income therefrom, and in no event shall any personal liability be asserted
against Landlord in connection with this Lease nor shall any recourse be had to
any other property or assets of Landlord.

                  26.      WAIVER OF JURY TRIAL. TENANT AND LANDLORD WAIVE ANY
RIGHT TO TRIAL BY JURY OR TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE,
WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, BETWEEN LANDLORD AND TENANT
ARISING OUT OF THIS LEASE OR ANY OTHER INSTRUMENT, DOCUMENT, OR AGREEMENT
EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED HERETO.

                  27.      SUBORDINATION. (a) This Lease and Tenant's interest
and rights hereunder are and shall be subject and subordinate at all times to
the lien of any first mortgage, now existing or hereafter created on or against
the Project or the Premises, and all amendments, restatements, renewals,
modifications, consolidations, refinancing, assignments and extensions thereof,
without the necessity of any further instrument or act on the part of Tenant.
Tenant agrees, at the election of the holder of any such mortgage, to attorn to
any such holder. The provisions of this Paragraph 27 shall be self-operative and
no further instrument shall be required to effect such subordination or
attornment; however, Tenant agrees to execute, acknowledge and deliver such
instruments, confirming such subordination and such instruments of attornment as
shall be requested by any such holder within ten (10) days of such request.
Tenant's obligation to furnish each such instrument requested hereunder in the
time period provided is a material inducement for Landlord's execution of this
Lease and any failure of Tenant to timely deliver each instrument shall be
deemed an Event of Default.

                  (b)      Notwithstanding the foregoing, any such holder may at
any time subordinate its mortgage to this Lease, without Tenant's consent, by
notice in writing to Tenant, and thereupon this Lease shall be deemed prior to
such mortgage without regard to their respective dates of execution, delivery or
recording and in that event such holder shall have the same rights with respect
to this Lease as though this Lease had been executed prior to the execution,
delivery and recording of such mortgage and had been assigned to such holder.
The term "mortgage" whenever used in this Lease shall be deemed to include deeds
of trust, security assignments and any other encumbrances, and any reference to
the "holder" of a mortgage shall be deemed to include the beneficiary under a
deed of trust.

                  (c)      Tenant shall not seek to enforce any remedy it may
have for any default on the part of Landlord without first giving written notice
by certified mail, return receipt requested, specifying the default in
reasonable detail to any mortgage holder whose address has been given to Tenant,
and affording such mortgage holder a reasonable opportunity to perform
Landlord's obligations hereunder. Notwithstanding any such attornment or
subordination of a mortgage to this Lease, the holder of any mortgage shall not
be liable for any acts of any previous landlord, shall not be obligated to
install any tenant improvements, and shall not be bound by any amendment to
which it did not consent in writing nor any payment of rent made more than one
month in advance.

                                       17

<PAGE>

                  (d)      Notwithstanding the foregoing, Tenant shall not be
required to subordinate this Lease to a Mortgage or attorn to a successor under
a Mortgage, nor shall the subordination provided herein be self-operative with
respect to a Mortgage, unless the Holder thereof shall enter into an agreement
with Tenant to the effect that in the event that the Holder or any other party
shall succeed to the interest of Landlord hereunder pursuant to such Mortgage,
Tenant's right to possession of the Premises shall not be disturbed and Tenant's
other rights hereunder shall not be adversely affected by any foreclosure of
such Mortgage and any Successor under the Mortgage shall succeed to Landlord's
rights and obligations under this Lease. Such agreement shall be in a
commercially reasonable written instrument in form satisfactory to Tenant and
Holder in their reasonable discretion. Landlord represents that the Premises are
not encumbered by any Mortgage as of the date hereof except that certain
mortgage held by Connecticut General Life Insurance Company (CIGNA) dated July,
2002 (the "Existing Mortgage"). Landlord agrees to use diligent efforts to
provide the agreement described above from the holder of the Existing Mortgage
within a reasonable time after the execution of this Lease.

                  28.      MECHANIC'S LIENS. Tenant has no express or implied
authority to create or place any lien or encumbrance of any kind upon, or in any
manner to bind the interest of Landlord or Tenant in, the Premises or to charge
the rentals payable hereunder for any claim in favor of any person dealing with
Tenant, including those who may furnish materials or perform labor for any
construction or repairs. Tenant covenants and agrees that it will pay or cause
to be paid all sums legally due and payable by it on account of any labor
performed or materials furnished in connection with any work performed on the
Premises and that it will save and hold Landlord harmless from all loss, cost or
expense based on or arising out of asserted claims or liens against the
leasehold estate or against the interest of Landlord in the Premises or under
this Lease. Tenant shall give Landlord immediate written notice of the placing
of any lien or encumbrance against the Premises and cause such lien or
encumbrance to be discharged within thirty (30) days of the filing or recording
thereof; provided, however, Tenant may contest such liens or encumbrances as
long as such contest prevents foreclosure of the lien or encumbrance and Tenant
causes such lien or encumbrance to be bonded or insured over in a manner
satisfactory to Landlord within such thirty (30) day period.

                  29.      ESTOPPEL CERTIFICATES. Each party agrees, from time
to time, within ten (10) days after request of the other, to execute and deliver
to the requesting party, or its designee, an estoppel certificate stating that
this Lease is in full force and effect, the date to which rent has been paid,
that neither Landlord nor Tenant is in default hereunder (or if so, specifying
in detail the nature of any such default), the termination date of this Lease
and such other matters pertaining to this Lease as may be requested by the
requesting party. Tenant's obligation to furnish each estoppel certificate in a
timely fashion is a material inducement for Landlord's execution of this Lease
and any failure of Tenant to timely deliver each estoppel certificate shall be
deemed an Event of Default. No cure or grace period provided in this Lease shall
apply to Tenant's obligation to timely deliver an estoppel certificate. Tenant
hereby irrevocably appoints Landlord as its attorney in fact to execute on its
behalf and in its name any such estoppel certificate if Tenant fails to execute
and deliver the estoppel certificate within ten (10) days after Landlord's
written request thereof.

                  30.      ENVIRONMENTAL REQUIREMENTS. (a) Except for Hazardous
Material contained in products used by Tenant in de minimis quantities for
ordinary cleaning and office purposes, Tenant shall not permit or cause any
party to bring any Hazardous Material upon the Premises or transport, store,
use, generate, manufacture, dispose, or release any Hazardous Material on or
from the Premises without Landlord's prior written consent. Tenant, at its sole
cost and expense, shall operate its business in the Premises in strict
compliance with all Environmental Requirements and all requirements of this
Lease. Tenant shall complete and certify to disclosure statements as reasonably
requested by Landlord from time to time relating to Tenant's transportation,
storage, use, generation, manufacture, or release of Hazardous Materials on the
Premises, and Tenant shall promptly deliver to Landlord a copy of any notice of
violation relating to the Premises or Project of any Environmental Requirement.

                  (b)      The term "Environmental Requirements" means all
applicable present and future statutes, regulations, ordinances, rules, codes,
judgments, permits, authorizations, orders, policies or other similar
requirements of any governmental authority, agency or court regulating or
relating to health, safety, or environmental conditions on, under, or about the
Premises or the environment, including without limitation, the following: the
Comprehensive Environmental Response, Compensation and Liability Act; the
Resource Conservation and Recovery Act; the Clean Air Act; the Clean Water Act;
the Toxic Substances Control Act and all state and local counterparts thereto,
and any common or civil law obligations including, without limitation,

                                       18

<PAGE>

nuisance or trespass, and any other requirements of Paragraphs 4 and 31 of this
Lease. The term "Hazardous Materials" means and includes any substance,
material, waste, pollutant, or contaminant that is or could be regulated under
any Environmental Requirement or that may adversely affect human health or the
environment, including, without limitation, any solid or hazardous waste,
hazardous substance, asbestos, petroleum (including crude oil or any fraction
thereof, natural gas, synthetic gas, polychlorinated biphenyls (PCBs), and
radioactive material). For purposes of Environmental Requirements, to the extent
authorized by law, Tenant is and shall be deemed to be the responsible party,
including without limitation, the "owner" and "operator" of Tenant's "facility"
and the "owner" of all Hazardous Materials brought on the Premises by Tenant,
its agents, employees, contractors or invitees, and the wastes, by-products, or
residues generated, resulting, or produced therefrom.

                  (c)      Tenant, at its sole cost and expense, shall remove
all Hazardous Materials stored, disposed of or otherwise released by Tenant, its
assignees, subtenants, agents, employees, contractors or invitees onto or from
the Premises, in a manner and to a level satisfactory to Landlord in its sole
discretion, but in no event to a level and in a manner less than that which
complies with all Environmental Requirements and does not limit any future uses
of the Premises or require the recording of any deed restriction or notice
regarding the Premises. Tenant shall perform such work at any time during the
period of the Lease upon written request by Landlord or, in the absence of a
specific request by Landlord, before Tenant's right to possession of the
Premises terminates or expires. If Tenant fails to perform such work within the
time period specified by Landlord or before Tenant's right to possession
terminates or expires (whichever is earlier), Landlord may at its discretion,
and without waiving any other remedy available under this Lease or at law or
equity (including without limitation an action to compel Tenant to perform such
work), perform such work at Tenant's cost. Tenant shall pay all costs incurred
by Landlord in performing such work within ten (10) days after Landlord's
request therefor. Such work performed by Landlord is on behalf of Tenant and
Tenant remains the owner, generator, operator, transporter, and/or arranger of
the Hazardous Materials for purposes of Environmental Requirements. Tenant
agrees not to enter into any agreement with any person, including without
limitation any governmental authority, regarding the removal of Hazardous
Materials that have been disposed of or otherwise released onto or from the
Premises without the written approval of the Landlord.

                  (d)      Tenant shall indemnify, defend, and hold Landlord
harmless from and against any and all losses (including, without limitation,
diminution in value of the Premises or the Project and loss of rental income
from the Project), claims, demands, actions, suits, damages (including, without
limitation, punitive damages), expenses (including, without limitation,
remediation, removal, repair, corrective action, or cleanup expenses), and costs
(including, without limitation, actual attorneys' fees, consultant fees or
expert fees) and including, without limitation, removal or management of any
asbestos brought into the Premises or disturbed in breach of the requirements of
this Paragraph 30, (regardless of whether such removal or management is required
by law) which are brought or recoverable against, or suffered or incurred by
Landlord as a result of any release of Hazardous Materials by Tenant or any
breach of the requirements under this Paragraph 30 by Tenant, its agents,
employees, contractors, subtenants, assignees or invitees, regardless of whether
Tenant had knowledge of such noncompliance. The obligations of Tenant under this
Paragraph 30 shall survive any termination of this Lease.

                  (e)      Landlord shall have access to, and a right to perform
inspections and tests of, the Premises to determine Tenant's compliance with
Environmental Requirements, its obligations under this Paragraph 30, or the
environmental condition of the Premises. Access shall be granted to Landlord
upon Landlord's prior notice to Tenant and at such times so as to minimize, so
far as may be reasonable under the circumstances, any disturbance to Tenant's
operations. Such inspections and tests shall be conducted at Landlord's expense,
unless such inspections or tests reveal that Tenant has not complied with any
Environmental Requirement, in which case Tenant shall reimburse Landlord for the
reasonable cost of such inspection and tests. Landlord's receipt of or
satisfaction with any environmental assessment in no way waives any rights that
Landlord holds against Tenant. Tenant shall promptly notify Landlord of any
communication or report that Tenant makes to any governmental authority
regarding any possible violation of Environmental Requirements or release or
threat of release of any Hazardous Materials onto or from the Premises. Tenant
shall, within five (5) days of receipt thereof, provide Landlord with a copy of
any documents or correspondence received from any governmental agency or other
party relating to a possible violation of Environmental Requirements or claim or
liability associated with the release or threat of release of any Hazardous
Materials onto or from the Premises.

                  (f)      In addition to all other rights and remedies
available to Landlord under this Lease or otherwise, Landlord may, in the event
of a breach of the requirements of this Paragraph

                                       19

<PAGE>

30 that is not cured within thirty (30) days following notice of such breach by
Landlord, require Tenant to provide financial assurance (such as insurance,
escrow of funds or third party guarantee) in an amount and form satisfactory to
Landlord. The requirements of this Paragraph 30 are in addition to and not in
lieu of any other provision in the Lease.

                  (g)      Other than as disclosed in that certain environmental
site assessment report identified on Exhibit C attached hereto (the
"Environmental Report"), a copy of which has been provided to Tenant, to
Landlord's current actual knowledge, neither Landlord nor any third party has
generated, disposed of, released, nor found any Hazardous Materials on or about
the Premises in violation of Environmental Requirements. It is understood by
Tenant, however, that Landlord has not made any independent investigations to
confirm the accuracy of the Environmental Report or the foregoing
representation, and Landlord makes no representation or warranty as to the
accuracy or completeness of the Environmental Report. Tenant agrees to keep the
Environmental Report confidential and not to disclose the contents thereof to
any other party without the prior written consent of Landlord. Landlord has
received no notice that any municipality or any governmental or
quasi-governmental authority has determined that there are any violations of the
Environmental Requirements with respect to the Premises.

                  (h)      Landlord agrees not to bring any Hazardous Material
upon the Premises or transport, store, use, generate or manufacture or release
any Hazardous Material in or about the Premises without Tenant's prior written
consent. Landlord shall indemnify, defend and hold Tenant harmless from and
against any and all direct losses, claims, demands, actions, suits, damages,
expenses, and costs (including, without limitation, actual attorneys' fees,
consultant fees or expert fees) which are brought or recoverable against, or
suffered or incurred by Tenant as a result of any release of Hazardous Materials
on or about the Premises or the Project to the extent caused by Landlord, its
agents or employees, and for which Landlord is obligated to remediate in
accordance with any Environmental Requirements. The obligations of Landlord
under this Paragraph 30 shall survive any termination of this Lease.

                  31.      RULES AND REGULATIONS. Tenant shall, at all times
during the Lease Term and any extension thereof, comply with all reasonable
rules and regulations at any time or from time to time established by Landlord
covering use of the Premises and the Project. The current rules and regulations
are attached hereto. In the event of any conflict between said rules and
regulations and other provisions of this Lease, the other terms and provisions
of this Lease shall control. Landlord shall not have any liability or obligation
for the breach of any rules or regulations by other tenants in the Project.

                  32.      SECURITY SERVICE. Tenant acknowledges and agrees
that, while Landlord may (but shall not be obligated to) patrol the Project,
Landlord is not providing any security services with respect to the Premises and
that Landlord shall not be liable to Tenant for, and Tenant waives any claim
against Landlord with respect to, any loss by theft or any other damage suffered
or incurred by Tenant in connection with any unauthorized entry into the
Premises or any other breach of security with respect to the Premises.

                  33.      EXTENSION OPTION. (a) Provided that this Lease is
then in full force and effect and further provided that Tenant is not then in
default, beyond the expiration of any applicable grace periods, under any of the
terms, covenants or conditions of the Lease on Tenant's part to be observed or
performed, Tenant shall have one option to extend this Lease and the Lease Term
for an extended term (the "Extension Term") of five (5) years commencing on the
date next following the last day of the original Lease Term and ending, unless
sooner terminated pursuant to the terms, covenants or conditions of the Lease or
pursuant to law, on the day immediately preceding the fifth (5th) anniversary of
the commencement date of the Extension Term. Said option to be exercisable only
by written notice given by Tenant to Landlord at least nine (9) months prior to
the last day of the original Lease Term. If Tenant exercises such option in
accordance with the provisions and limitations of this Paragraph 33, this Lease
and the Lease Term shall be extended for such term upon all of the then
applicable terms, covenants and conditions contained in this Lease, except that
the Base Rent for the entire Extension Term shall be at an annual rate
determined as set forth below, it being understood that such Base Rent shall be
payable in equal monthly installments, in advance, just as in the case of the
original Lease Term. The Base Rent for the Extension Term shall be at the
greater of (i) the Base Rent in effect at the end of the original Lease Term or
(ii) ninety-five percent (95%) of the Market Rent, to be determined as follows:
Landlord shall provide Tenant with Landlord's written designation of what it
believes to be the fair market rental value of the Premises for the Extension
Term taking into consideration other similar industrial buildings in the
Building's competitive submarket as defined by local commercial real estate
brokerage firms, and considering all applicable economic terms and concessions
(hereinafter, the "Market Rent"), such

                                       20

<PAGE>

written designation to be sent to Tenant within thirty (30) days after receipt
by Landlord of notice of Tenant's exercise of its option with respect to the
Extension Term. If Tenant disagrees with Landlord's designation of the Market
Rent and if the parties are otherwise unable to agree within twenty (20) days
after receipt of Landlord's designation, then Tenant may initiate the following
arbitration process to determine the Market Rent by sending written notice
thereof to the Landlord within fourteen (14) days after the expiration of such
twenty (20) day period. If Tenant fails to initiate this arbitration process as
aforesaid, time being of the essence, then Landlord's designation of Market Rent
(as set forth in Landlord's notice) shall be conclusive. In order to be
effective, Tenant's notice to Landlord initiating the arbitration process shall
specify the name and address of the person designated to act as an arbitrator on
its behalf. Within fourteen (14) days after the designation of Tenant's
arbitrator, Landlord shall give notice to Tenant specifying the name and address
of the person designated to act as an arbitrator on its behalf. If Landlord
fails to notify Tenant of the appointment of its arbitrator within the time
above specified, then the appointment of the second arbitrator shall be made in
the same manner as hereinafter provided for the appointment of a third
arbitrator in a case where two arbitrators are appointed hereunder and the
parties are unable to agree upon such appointment. The two arbitrators so chosen
shall meet within ten (10) days after the second arbitrator is appointed, and
if, within fifteen (15) days after the second arbitrator is appointed, the two
arbitrators shall not agree upon a determination, they shall together appoint a
third arbitrator. In the event of their being unable to agree upon such
appointment within fifteen (15) days after the appointment of the second
arbitrator, the third arbitrator shall be selected by the parties themselves if
they can agree thereon within a further period of fifteen (15) days. If the
parties do not so agree, then either party, on behalf of both and on notice to
the other, may request such appointment by the American Arbitration Association
(or any organization successor thereto) in accordance with its rules then
prevailing.

         (b)      Each party shall pay the fees and expenses of the one of the
two original arbitrators appointed by or for such party, and the fees and
expenses of the third arbitrator and all other expenses (not including the
attorneys fees, witness fees and similar expenses of the parties which shall be
borne separately by each of the parties) of the arbitration shall be borne by
the parties equally.

         (c)      If a third arbitrator is chosen as provided above, then such
three arbitrators shall collectively determine the Market Rent and render a
written certified report of their determination to both Landlord and Tenant
within fifteen (15) days after appointment of the third arbitrator if such third
arbitrator is appointed pursuant to this Paragraph 33.

         (d)      Each of the arbitrators selected as herein provided shall have
at least ten (10) years experience in the leasing and renting of industrial
space in industrial buildings in Worcester County, Massachusetts. In addition,
the third arbitrator (if any) shall be an independent party not affiliated in
any way with either Landlord or Tenant.

         (e)      Each of the three arbitrators shall indicate his view of the
Market Rent. The number furthest from the middle number shall be disregarded and
the remaining two numbers shall be averaged. The resulting average shall be
deemed to be the Market Rent for purposes of this paragraph. Tenant may cancel
its exercise of this option to extend the term of this Lease, if Tenant is
dissatisfied with the determination of Market Rent through the foregoing
arbitration process. In order to cancel its exercise of this option as
aforesaid, Tenant must send written notice to Landlord within seven (7) days
after the determination by the arbitrators of Market Rent, and in such notice
Tenant must state that it is so canceling its exercise of this extension option.

         (f)      Time is of the essence with respect to the exercise of the
option contained herein. Tenant shall not have the right to give any notice
exercising such option after the expiration of the applicable time limitation
set forth herein, and any notice given after such time limitation purporting to
exercise such option shall be void and of no force or effect.

                  34.      FORCE MAJEURE. Neither Landlord nor Tenant shall be
held responsible for delays in the performance of its obligations hereunder
(other than Tenant's monetary obligations hereunder) when caused by strikes,
lockouts, labor disputes, acts of God, inability to obtain labor or materials or
reasonable substitutes therefor, governmental restrictions, governmental
regulations, governmental controls, delay in issuance of permits, enemy or
hostile governmental action, civil commotion, fire or other casualty, and other
causes beyond the reasonable control of Landlord ("Force Majeure").

                                       21

<PAGE>

                  35.      ENTIRE AGREEMENT. This Lease constitutes the complete
and entire agreement of Landlord and Tenant with respect to the subject matter
hereof. No representations, inducements, promises or agreements, oral or
written, have been made by Landlord or Tenant, or anyone acting on behalf of
Landlord or Tenant, which are not contained herein, and any prior agreements,
promises, negotiations, or representations are superseded by this Lease. This
Lease may not be amended except by an instrument in writing signed by both
parties hereto.

                  36.      SEVERABILITY. If any clause or provision of this
Lease is illegal, invalid or unenforceable under present or future laws, then
and in that event, it is the intention of the parties hereto that the remainder
of this Lease shall not be affected thereby. It is also the intention of the
parties to this Lease that in lieu of each clause or provision of this Lease
that is illegal, invalid or unenforceable, there be added, as a part of this
Lease, a clause or provision as similar in terms to such illegal, invalid or
unenforceable clause or provision as may be possible and be legal, valid and
enforceable.

                  37.      BROKERS. Tenant represents and warrants that it has
dealt with no broker, agent or other person in connection with this transaction
and that no broker, agent or other person brought about this transaction, other
than the Brokers set forth on the first page of this Lease, and Tenant agrees to
indemnify and hold Landlord harmless from and against any claims by any other
broker, agent or other person claiming a commission or other form of
compensation by virtue of having dealt with Tenant with regard to this leasing
transaction. Landlord represents and warrants that it has dealt with no broker,
agent or other person in connection with this transaction and that no broker,
agent or other person brought about this transaction, other than the Brokers set
forth on the first page of this Lease, and Landlord agrees to indemnify and hold
Tenant harmless from and against any claims by any broker, agent or other person
claiming a commission or other form of compensation by virtue of having dealt
with Landlord with regard to this leasing transaction, including the Brokers.

                  38.      MISCELLANEOUS. (a) Any payments or charges due from
Tenant to Landlord hereunder shall be considered rent for all purposes of this
Lease.

                  (b)      If and when included within the term "Tenant," as
used in this instrument, there is more than one person, firm or corporation,
each shall be jointly and severally liable for the obligations of Tenant.

                  (c)      All notices required or permitted to be given under
this Lease shall be in writing and shall be sent by registered or certified
mail, return receipt requested, or by a reputable national overnight courier
service, postage prepaid, or by hand delivery and, if to Tenant, addressed to
Tenant at the address for Tenant noted on the first page of this Lease, and if
to Landlord, addressed to Landlord at c/o Crow Holdings Industrial Trust, 2100
McKinney Avenue, Suite 700, Dallas, Texas 75201, Attention: James C. Hendricks,
with a copy to Lewis and Roca LLP, 40 North Central Avenue, Suite 1800, Phoenix,
Arizona 85004-4429, Attention: Andy Carper/Tracy Durchslag. Either party may by
notice given aforesaid change its address for all subsequent notices. Except
where otherwise expressly provided to the contrary, notice shall be deemed given
upon delivery.

                  (d)      Except as otherwise expressly provided in this Lease
or as otherwise required by law, Landlord retains the absolute right to withhold
any consent or approval.

                  (e)      At Landlord's request from time to time Tenant shall
furnish Landlord with true and complete copies of Guarantor's most recent annual
and quarterly financial statements prepared by Guarantor or Guarantor's
accountants and any other financial information or summaries that Guarantor
typically provides to its lenders or shareholders. Such annual statements shall
be audited by an independent certified public accountant at Guarantor's sole
cost and expense. Landlord shall hold such financial statements and information
in confidence, and shall not disclose the same except: (i) to Landlord's lenders
or potential lenders, (ii) to potential purchasers of all or a portion of the
Project, (iii) otherwise as reasonably necessary for the operation of the
Project or administration of Landlord's business or (iv) if disclosure is
required by any judicial or administrative order or ruling.

                  (f)      Neither this Lease nor a memorandum of lease shall be
filed by or on behalf of Tenant in any public record.

                  (g)      Each party acknowledges that it has had the
opportunity to consult counsel with respect to this Lease, and therefore, the
normal rule of construction to the effect that any

                                       22

<PAGE>

ambiguities are to be resolved against the drafting party shall not be employed
in the interpretation of this Lease or any exhibits or amendments hereto.

                  (h)      The submission by Landlord to Tenant of this Lease
shall have no binding force or effect, shall not constitute an option for the
leasing of the Premises, nor confer any right or impose any obligations upon
either party until execution of this Lease by both parties.

                  (i)      Words of any gender used in this Lease shall be held
and construed to include any other gender, and words in the singular number
shall be held to include the plural, unless the context otherwise requires. The
captions inserted in this Lease are for convenience only and in no way define,
limit or otherwise describe the scope or intent of this Lease, or any provision
hereof, or in any way affect the interpretation of this Lease.

                  (j)      Any amount not paid by Tenant within five (5) days
after its due date in accordance with the terms of this Lease shall bear
interest from such due date until paid in full at the lesser of the highest rate
permitted by applicable law or fifteen percent (15%) per year. It is expressly
the intent of Landlord and Tenant at all times to comply with applicable law
governing the maximum rate or amount of any interest payable on or in connection
with this Lease. If applicable law is ever judicially interpreted so as to
render usurious any interest called for under this Lease, or contracted for,
charged, taken, reserved, or received with respect to this Lease, then it is
Landlord's and Tenant's express intent that all excess amounts theretofore
collected by Landlord be credited on the applicable obligation (or, if the
obligation has been or would thereby be paid in full, refunded to Tenant), and
the provisions of this Lease immediately shall be deemed reformed and the
amounts thereafter collectible hereunder reduced, without the necessity of the
execution of any new document, so as to comply with the applicable law, but so
as to permit the recovery of the fullest amount otherwise called for hereunder.

                  (j)      Construction and interpretation of this Lease shall
be governed by the laws of the state in which the Project is located, excluding
any principles of conflicts of laws.

                  (k)      Time is of the essence as to the performance of all
obligations of either party under this Lease.

                  (l)      All exhibits and addenda attached hereto are hereby
incorporated into this Lease and made a part hereof. In the event of any
conflict between such exhibits or addenda (other than the rules and regulations)
and the terms of this Lease, such exhibits or addenda shall control. In the
event of a conflict between the rules and regulations attached hereto and the
terms of this Lease, the terms of this Lease shall control.

                  (m)      If either party should prevail in any litigation
instituted by or against the other related to this Lease, the prevailing party,
as determined by the court, shall receive from the non-prevailing party all
costs and reasonable attorneys' fees (payable at standard hourly rates) incurred
in such litigation, including costs on appeal, as determined by the court.

                  39.      LIMITATION OF LIABILITY OF LANDLORD'S PARTNERS, AND
OTHERS. Tenant agrees that any obligation or liability whatsoever of Landlord
which may arise at any time under this Lease, or any obligation or liability
which may be incurred by Landlord pursuant to any other instrument, transaction,
or undertaking contemplated hereby, shall not be personally binding upon, nor
shall resort for the enforcement thereof be had to the property of the
constituent partners of Landlord or any of their respective directors, officers,
representatives, employees or agents, regardless of whether such obligation or
liability is in the nature of contract, tort, or otherwise.

                                       23

<PAGE>

                  IN WITNESS WHEREOF, Landlord and Tenant have executed this
Lease as of the day and year first above written.

                                        TENANT:

                                        SUNDANCE PUBLISHING COMPANY, INC.

                                        By:____________________________
                                        Name:__________________________
                                        Title:_________________________

                                        LANDLORD:

                                        LIT INDUSTRIAL LIMITED PARTNERSHIP, A
                                        DELAWARE LIMITED PARTNERSHIP, FORMERLY
                                        KNOWN AS CROW FAMILY HOLDINGS INDUSTRIAL
                                        LIMITED PARTNERSHIP

                                        By:   LIT Holdings GP, LLC, a Delaware
                                              limited liability company, its
                                              general partner

                                        By:   Lion Industrial Properties, L.P.,
                                              a Delaware limited partnership,
                                              its sole member

                                        By:   LIT GP Sub, LLC, a Delaware
                                              limited liability company, its
                                              general partner

                                        By:   Lion Industrial Trust, a Maryland
                                              real estate investment trust, its
                                              manager

                                              By:_______________________________
                                              Name:_____________________________
                                              Title:____________________________

                                       24

<PAGE>

                              RULES AND REGULATIONS

                  In the event of a conflict between the following Rules and
Regulations and the terms of the Lease to which this Addendum is attached, the
terms of the Lease shall control.

                  1.       The sidewalk, entries, and driveways of the Project
shall not be obstructed by Tenant, or its agents, or used by them for any
purpose other than ingress and egress to and from the Premises.

                  2.       Tenant shall not place any objects, including
antennas, outdoor furniture, etc., in the parking areas, landscaped areas or
other areas outside of its Premises, or on the roof of the Project.

                  3.       Except for seeing-eye dogs, no animals shall be
allowed in the offices, halls, or corridors in the Project.

                  4.       Tenant shall not disturb the occupants of the Project
or adjoining buildings by the use of any radio or musical instrument or by the
making of loud or improper noises.

                  5.       If Tenant desires telegraphic, telephonic or other
electric connections in the Premises, Landlord or its agent will direct the
electrician as to where and how the wires may be introduced; and, without such
direction, no boring or cutting of wires will be permitted. Any such
installation or connection shall be made at Tenant's expense.

                  6.       Tenant shall not install or operate any steam or gas
engine or boiler, or other mechanical apparatus in the Premises, except as
specifically approved in the Lease. The use of oil, gas or inflammable liquids
for heating, lighting or any other purpose is expressly prohibited. Explosives
or other articles deemed extra hazardous shall not be brought into the Project.

                  7.       Parking any type of recreational vehicles is
specifically prohibited on or about the Project. Except for the overnight
parking of operative vehicles or as expressly permitted in the Lease, no vehicle
of any type shall be stored in the parking areas at any time. In the event that
a vehicle is disabled, it shall be removed within 48 hours. There shall be no
"For Sale" or other advertising signs on or about any parked vehicle. All
vehicles shall be parked in the designated parking areas in conformity with all
signs and other markings. All parking will be open parking, and no reserved
parking, numbering or lettering of individual spaces will be permitted except as
specified by Landlord.

                  8.       Tenant shall maintain the Premises free from rodents,
insects and other pests.

                  9.       Landlord reserves the right to exclude or expel from
the Project any person who, in the judgment of Landlord, is intoxicated or under
the influence of liquor or drugs or who shall in any manner do any act in
violation of the Rules and Regulations of the Project.

                  10.      Tenant shall not cause any unnecessary labor by
reason of Tenant's carelessness or indifference in the preservation of good
order and cleanliness. Landlord shall not be responsible to Tenant for any loss
of property on the Premises, however occurring, or for any damage done to the
effects of Tenant by the janitors or any other employee or person.

                  11.      Tenant shall give Landlord prompt notice of any
defects in the water, lawn sprinkler, sewage, gas pipes, electrical lights and
fixtures, heating apparatus, or any other service equipment affecting the
Premises.

                  12.      Tenant shall not permit storage outside the Premises,
including without limitation, outside storage of trucks and other vehicles, or
dumping of waste or refuse or permit any harmful materials to be placed in any
drainage system or sanitary system in or about the Premises.

                  13.      All moveable trash receptacles provided by the trash
disposal firm for the Premises must be kept in the trash enclosure areas, if
any, provided for that purpose.

<PAGE>

                  14.      No auction, public or private, will be permitted on
the Premises or the Project.

                  15.      No awnings shall be placed over the windows in the
Premises except with the prior written consent of Landlord.

                  16.      The Premises shall not be used for lodging, sleeping
or cooking or for any immoral or illegal purposes or for any purpose other than
that specified in the Lease. No gaming devices shall be operated in the
Premises.

                  17.      Tenant shall ascertain from Landlord the maximum
amount of electrical current which can safely be used in the Premises, taking
into account the capacity of the electrical wiring in the Project and the
Premises and the needs of other tenants, and shall not use more than such safe
capacity. Landlord's consent to the installation of electric equipment shall not
relieve Tenant from the obligation not to use more electricity than such safe
capacity.

                  18.      Tenant assumes full responsibility for protecting the
Premises from theft, robbery and pilferage.

                  19.      Tenant shall not install or operate on the Premises
any machinery or mechanical devices of a nature not directly related to Tenant's
ordinary use of the Premises and shall keep all such machinery free of
vibration, noise and air waves which may be transmitted beyond the Premises.

                  20.      Tenant shall not introduce, disturb or release
asbestos or PCBs onto or from the Premises.

                  21.      Tenant shall at all times conduct its operations in a
good and workmanlike manner, employing best management practices to minimize the
threat of any violation of Environmental Requirements.

<PAGE>

                                    EXHIBIT A

                                    PREMISES

<PAGE>

                                   EXHIBIT A-1

                       LEGAL DESCRIPTION OF REAL PROPERTY

That certain parcel of land shown as Lot 1A on a plan entitled "Plan of Land in
Northborough, MA," dated July 16, 2002, by Guerard Survey Co. & Assoc. Inc.,
recorded with the Worcester County Registry of Deeds on August 14, 2002 in Plan
Book 784, Plan 80, commonly known as One Beeman Road, Northborough, Worcester
County, Massachusetts.

<PAGE>

                                    EXHIBIT B

                              CONSTRUCTION ADDENDUM
                            (CONSTRUCTION ALLOWANCE)

                   ATTACHED TO AND A PART OF LEASE AGREEMENT
                         DATED JANUARY 15, 2003 BETWEEN

                 LIT INDUSTRIAL LIMITED PARTNERSHIP (LANDLORD)
                                      AND
                   SUNDANCE PUBLISHING COMPANY, INC. (TENANT)

                     FOR ONE BEEMAN ROAD, NORTHBOROUGH, MA

         (a)      Landlord agrees to furnish or perform or cause to be performed
those items of construction and those improvements ("Tenant Improvements")
specified below:

1.   Remodel lighting in a portion of the warehouse space based on storage racks
     layout shown on the Proposed Warehouse Layout drawing dated November 8,
     2002, as revised.

2.   Landlord shall cause to be prepared and submit to the local authorities for
     review and approval engineering drawings, specifications and calculations
     for fire sprinkler system modification in the warehouse portion of the
     Premises as required by all applicable codes and regulations and cause to
     be prepared "as-built" drawings for the system layout as required for these
     calculations.

3.   Implement the modifications of the fire sprinkler system in the warehouse
     portion of the Premises as described above.

4.   Cause to be prepared and submit to the local authorities for review and
     approval architectural drawings, specifications and calculations showing
     the means of egress and exit distance, exit lights, exit signs, fire alarm
     pull stations, fire alarm system annunciation devices, etc., as required by
     all applicable codes and regulations and local authorities for the
     warehouse portion of the Premises.

5.   Design and implement modifications to the fire alarm system based on the
     architect's drawings described above and as required by all applicable
     codes and regulations, including but not limited to relocation and addition
     of fire alarm pull stations, horns/strobes, exit signs, etc.

6.   Remove unused, abandoned PVC and steel piping suspended from the
     structural steel below roof in the warehouse portion of the Premises.

     Landlord shall pay for the Tenant Improvements up to a maximum amount of
$108,060.00 (the "Construction Allowance"). In the event the cost of the Tenant
Improvements exceeds the Construction Allowance, such overage shall be borne
exclusively by Tenant and Tenant shall, within thirty (30) days after written
demand therefor, reimburse Landlord for costs and expenses for the Tenant
Improvements exceeding the Construction Allowance. Landlord makes no
representation or warranty whatsoever as to the total cost of the Tenant
Improvements and Tenant acknowledges that the cost of the Tenant Improvements
may exceed the Construction Allowance.

The Landlord shall obtain competitive bids for the Tenant Improvements listed in
1-6 above for review by Tenant, and implement this work using the lowest cost
contractors without cost mark-ups, or otherwise proceed as agreed upon by
Landlord and Tenant. Tenant shall have the option to hire and manage contractors
to implement this work, in which case Landlord shall reimburse Tenant for costs
and expenses for the Tenant Improvements up to the amount of the Construction
Allowance within thirty (30) days after receipt of an invoice for such costs and
such other documentation as Landlord may

<PAGE>

reasonably request to substantiate such costs. If the Tenant does so, Landlord
shall have the right to review such contract or contracts.

         (b)      If required by any code, regulation, governmental agency or
the ADA, Landlord shall be responsible for the design and installation of a
passenger elevator in the Premises, but only in the case that it shall be
required by a third party. If such an action shall be initiated by a third
party, Tenant and Landlord shall cooperate with such third party in finding and
implementing any reasonable alternate solutions that meet compliance to mitigate
the requirement for vertical transportation. If such installation of a passenger
elevator will be required due to Tenant's proposed use of the office portion of
the Premises as a place of public accommodation, Tenant shall be responsible for
the cost of such design and installation.

         (c)      The Tenant intends to use the warehouse portion of the
Premises for storage of class III product with less than 5% plastics on racks up
to 19 feet high from the floor. If required by any applicable code, regulation
or appropriate local authorities, the Landlord, at Landlord's sole cost and
expense, shall upgrade the existing fire protection system in the warehouse
portion of the Premises as required to obtain a certificate of occupancy for the
Premises.

         (d)      If required by any code, regulation or governmental agency,
the Landlord shall be responsible for the cost of work to upgrade the Building
systems inside and outside of the Premises to comply with all applicable codes
and regulations, including ADA, for Tenant's occupancy. If such work will be
required due to Tenant's proposed modifications or change of use of the
Premises, Tenant shall be responsible for the cost of such upgrades.

<PAGE>

                                    EXHIBIT C

                              ENVIRONMENTAL REPORTS

1.       "Phase I Environmental Site Assessment of Equity Industrial Partners
Portfolio, One Beeman Road, Northborough, Massachusetts, 01532," prepared by EMG
and dated October 8, 1998 (the "EMG Report").

2.       "Phase I Environmental Site Assessment: One Beeman Road
Office/Warehouse Facility, One Beeman Road, Northborough, Massachusetts AEGON
Engineering No. 01-2205-1.0," prepared by EFI and dated December 2001 (the "EFI
Report").

<PAGE>

                                  PARKING PLAN

                                 (see attached)

<PAGE>

                              RIGHT OF FIRST OFFER

                    ATTACHED TO AND A PART OF LEASE AGREEMENT
                         DATED JANUARY 15, 2003 BETWEEN

                  LIT INDUSTRIAL LIMITED PARTNERSHIP (LANDLORD)
                                       AND
                   SUNDANCE PUBLISHING COMPANY, INC. (TENANT)

                      FOR ONE BEEMAN ROAD, NORTHBOROUGH, MA

         (a)      "Offered Space" shall mean any space in the industrial
building located at One Beeman Road, Northborough, Massachusetts containing
approximately 310,000 rentable square feet of floor area, other than the
Premises leased to Tenant under this Lease.

         (b)      Provided that as of the date of the giving of the Offer Notice
(as defined hereinafter), (x) Tenant is the Tenant originally named herein, (y)
Tenant actually occupies all of the Premises originally demised under this Lease
and any premises added to the Premises, and (z) no Event of Default or event
which but for the passage of time or the giving of notice, or both, would
constitute an Event of Default has occurred and is continuing, if at any time
during the Lease Term any lease for any portion of the Offered Space shall
expire and if Landlord intends to market the Offered Space to prospects for
lease with third parties (a "Proposed Tenant") other than the tenant then
occupying such space (or its affiliates), Landlord shall first allow Tenant the
right to include the Offered Space within the Premises.

         (c)      Such offer shall be made by Landlord to Tenant in a written
notice (the "Offer Notice") which notice shall designate the space being offered
and shall specify the terms for such Offered Space that Landlord intends to
submit to prospective tenants in an effort to market the Offered Space. Tenant
may accept the offer set forth in the Offer Notice by delivering to Landlord an
unconditional acceptance ("Tenant's Notice") of such offer within five (5)
business days after delivery by Landlord of the Offer Notice to Tenant. Time
shall be of the essence with respect to the giving of Tenant's Notice. If Tenant
does not accept (or fails to timely accept) an offer made by Landlord pursuant
to the provisions of this Addendum with respect to the Offered Space designated
in the Offer Notice, Landlord shall be under no further obligation with respect
to such space by reason of this Addendum. In order to send the Offer Notice,
Landlord does not need to have negotiated a lease with any particular Proposed
Tenant but may merely have determined on what basis it will market the Offered
Space to Proposed Tenants. Tenant must make its decision with respect to the
Offered Space as long as it has received a description of such material economic
terms.

         (d)      Tenant must accept all Offered Space offered by Landlord at
any one time if it desires to accept any of such Offered Space and may not
exercise its right with respect to only part of such space. In addition, if
Landlord desires to lease more than just the Offered Space to one tenant,
Landlord may offer to Tenant pursuant to the terms hereof all such space which
Landlord desires to lease, and Tenant must exercise its rights hereunder with
respect to all such space and may not insist on receiving an offer for just the
Offered Space.

         (e)      If Tenant at any time declines any Offered Space offered by
Landlord, Tenant shall be deemed to have irrevocably waived all further rights
under this Addendum, and Landlord shall be free to lease the Offered Space to
any Proposed Tenant including on terms which may be less favorable to Landlord
than those set forth in the Offer Notice.

<PAGE>

                                    GUARANTY

Property Address: One Beeman Road, Northborough, Massachusetts

Date of Lease: January 15, 2003

1.  In order to induce LIT Industrial Limited Partnership ("Landlord") to
execute the Lease to which this Guaranty is attached (the "Lease") with Sundance
Publishing Company, Inc. ("Tenant") for the Demised Premises in Northborough,
Massachusetts, the undersigned (whether one or more than one) has guaranteed and
by this instrument does hereby guarantee the full payment and performance of all
liabilities, obligations, and duties, (including, but not limited to, payment of
Rent) imposed upon Tenant under the terms of the Lease, as if the undersigned
has executed the Lease as Tenant thereunder.

2.  The undersigned hereby waives notice of acceptance of this guarantee and all
other notices in connection herewith or in connection with the liabilities,
obligations, and duties guaranteed hereby, including notices of default by
Tenant under the Lease.

3.  The undersigned further agrees that Landlord shall not be first
required to enforce against Tenant or any other person any liability,
obligation, or duty guaranteed hereby before seeking enforcement thereof against
the undersigned. Suit may be brought and maintained against the undersigned by
Landlord to enforce any liability, obligation, or duty guaranteed hereby without
joinder of Tenant or any other person. The liability of the undersigned shall
not be affected by any indulgence, compromise, settlement, or variation of terms
which may be extended to Tenant by Landlord or agreed upon by Landlord and
Tenant, and shall not be impaired, modified, changed, released, or limited in
any manner whatsoever by any impairment, modification, change, release, or
limitation of the liability of Tenant or its estate in bankruptcy, or of any
remedy for the enforcement thereof, resulting from the operation of any present
or future provision of the United States Bankruptcy Code, or any similar law or
statute of the United States or any State thereof. Landlord and Tenant, without
notice to or consent by the undersigned, may at any time or times enter into
such extensions, amendments, assignments, subleases, or other covenants
respecting the Lease as they may deem appropriate; and the undersigned shall not
be released thereby, but shall continue to be fully liable for the payment and
performance of all liabilities, obligations, and duties of Tenant under the
Lease as so extended, amended, assigned or otherwise modified.

4.  It is understood that other agreements similar to this guarantee may, at
Landlord's sole option and discretion, be executed by other persons with respect
to the Lease. This guarantee shall be cumulative of any such agreements and the
liabilities and the obligations of the undersigned hereunder shall in no event
be affected or diminished by reason of such agreements. Moreover, in the event
Landlord obtains another signature of more than one guarantor on this page or by
obtaining additional guarantee agreements, or both, the undersigned agrees that
Landlord, in Landlord's sole discretion, may (i) bring suit against all
guarantors of the Lease, jointly and severally, or against any one or more of
them; (ii) compound or settle with one or more of the guarantors for such
consideration as Landlord may deem proper; and (iii) release one or more of the
guarantors from liability. The undersigned further agrees that no such action
shall impair the rights of Landlord to enforce the Lease against any remaining
guarantor or guarantors, including the undersigned.

5.  This agreement shall be binding upon the undersigned Guarantor and the
successors, heirs; executors, and administrators of the Guarantor, and shall
inure to the benefit of Landlord and Landlord's heirs, executors,
administrators, successors and assigns.

Executed this ____ day of January, 2003, effective as of the effective day of
the Lease.

GUARANTOR: Haights Cross Communications, Inc.

By: ______________________________________
    (Signature)

Name:
Title:
Address:
Phone:

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