Document:

EXHIBIT 10.13

                                301 HOWARD STREET

                            SAN FRANCISCO, CALIFORNIA

                             OFFICE LEASE AGREEMENT

                                     BETWEEN

          CA-301 HOWARD STREET LIMITED PARTNERSHIP, A DELAWARE LIMITED
                                   PARTNERSHIP

                                ("LANDLORD") AND

                 SONOMA COLLEGE, INC., A CALIFORNIA CORPORATION

                                   ("TENANT")

                             OFFICE LEASE AGREEMENT

         THIS OFFICE LEASE  AGREEMENT  (the "LEASE") is made and entered into as
of the _____ day of  __________,  2005,  by and  between  CA-301  HOWARD  STREET
LIMITED  PARTNERSHIP,  A DELAWARE  LIMITED  PARTNERSHIP  ("LANDLORD") and SONOMA
COLLEGE, INC., A CALIFORNIA CORPORATION  ("TENANT").  The following exhibits and

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attachments  are  incorporated  into and  made a part of the  Lease:  EXHIBIT  A
(Outline and Location of Premises),  EXHIBIT B (Expenses  and Taxes),  EXHIBIT C
(Work Letter),  EXHIBIT D (Commencement  Letter),  EXHIBIT E (Building Rules and
Regulations) and EXHIBIT F (Additional Provisions).

1. BASIC LEASE INFORMATION.

1. 1.01  "BUILDING"  shall mean the building  located at 301 Howard Street,  San
Francisco,  California,  commonly known as 301 Howard Street.  "RENTABLE  SQUARE
FOOTAGE OF THE BUILDING" is deemed to be 307,396 square feet.

2. 1.02  "PREMISES"  shall mean the area shown on EXHIBIT A to this  Lease.  The
Premises is located on the 5th floor and known as Suite No. 550. If the Premises
include  one or more  floors  in their  entirety,  all  corridors  and  restroom
facilities  located  on such  full  floor(s)  shall  be  considered  part of the
Premises.  The "RENTABLE  SQUARE  FOOTAGE OF THE PREMISES" is deemed to be 7,084
square feet.  Landlord and Tenant  stipulate and agree that the Rentable  Square
Footage of the  Building  and the  Rentable  Square  Footage of the Premises are
correct.

3. 1.03 "BASE RENT":

4. 1.04 "TENANT'S PRO RATA SHARE": 2.3045%.

5. 1.05 "BASE  YEAR" for Taxes  (defined in EXHIBIT  B):  2005;  "BASE YEAR" for
Expenses (defined in EXHIBIT B): 2005.

6. 1.06 "TERM": A period of 60 months and 0 days. Subject to Section 3, the Term
shall commence on May 1, 2005 (the "COMMENCEMENT DATE") and, unless terminated
early in accordance with this Lease, end on April 30, 2010 (the "TERMINATION
DATE").

7. 1.07 ALLOWANCE(S): None.

8. 1.08 "SECURITY DEPOSIT": $40,000.00, as more fully described in Section 6.

9. 1.09 "GUARANTOR(S)": None, as of the date of this Lease.

10. 1.10 "BROKER(S)": Scott Nykodym of CB Richard Ellis, Inc.

11. 1.11 "PERMITTED  USE":  General office use and educational and training use;
provided that in no event shall the Premises, or any portion of the Premises, be
used as a food  service  establishment  or for the  retail  sale of  sandwiches,
salads and soups.
<TABLE>
<S>                                      <C>                            <C>
-------------------------------------- ------------------------------- --------------------
 PERIOD OR MONTHS OF TERM               ANNUAL RATE PER SQUARE FOOT    MONTHLY BASE RENT
  1 - 36                                           $24.25                 $14,315.58
  37 - 48                                          $25.25                 $14,905.92
  49 - 60                                          $26.25                 $15,496.25

-------------------------------------- ------------------------------- --------------------
</TABLE>

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  1.12   "NOTICE ADDRESS(ES)":

         Landlord:                                           Tenant:

         CA-301 Howard Street Limited Partnership
         c/o Equity Office Management, L.L.C.
         One Market, Spear Street Tower
         Suite 600
         San Francisco, California 94105
         Attn: Property Manager

         With a copy to:
         Equity Office
         One Market, Spear Tower, Suite 600
         San Francisco, California 94105
         Attn: San Francisco Regional Counsel

                                             Sonoma College, Inc. 1304
                                             South Point Boulevard Suite 280
                                             Petaluma, California 94954 Attn:

                                             With a copy to: Cohen & Czarnik LLP
                                             140 Broadway, 36th Floor
                                             New York, New York 10005
                                             Attn: Stephen J. Czarnik, Esq.

1. 1.13 "BUSINESS  DAY(S)" are Monday through Friday of each week,  exclusive of
New Year's Day,  Presidents  Day,  Memorial Day,  Independence  Day,  Labor Day,
Thanksgiving  Day  and  Christmas  Day  ("HOLIDAYS").   Landlord  may  designate
additional  Holidays that are commonly  recognized by other office  buildings in
the area where the Building is located.  "BUILDING  SERVICE HOURS" are 7:00 a.m.
to 6:00 p.m. on Business Days.

2. 1.14 "LANDLORD WORK" means the work, if any, that Landlord is obligated to
perform in the Premises pursuant to a separate agreement (the "WORK LETTER"), if
any, attached to this Lease as EXHIBIT C.

3. 1.15 "PROPERTY" means the Building and the parcel(s) of land on which it is
located and, at Landlord's discretion, the parking facilities and other
improvements, if any, serving the Building and the parcel(s) of land on which
they are located.

2. LEASE GRANT.

     The Premises are hereby leased to Tenant from  Landlord,  together with the
right to use any portions of the Property  that are  designated  by Landlord for
the common use of tenants and others (the "COMMON AREAS").

3. ADJUSTMENT OF COMMENCEMENT DATE; POSSESSION.

1.  3.01  If  Landlord  is  required  to  perform  Landlord  Work  prior  to the
Commencement  Date:  (a) the date set forth in Section 1.06 as the  Commencement
Date shall instead be defined as the "TARGET  COMMENCEMENT DATE"; (b) the actual
Commencement Date shall be the earlier of the Target Commencement Date, the date
on which Tenant  occupies the Premises,  and the date on which the Landlord Work
is Substantially  Complete (defined below); and (c) the Termination Date will be
the last day of the Term as determined based upon the actual  Commencement Date.
Landlord's  failure to  Substantially  Complete the Landlord  Work by the Target
Commencement  Date  shall not be a  default  by  Landlord  or  otherwise  render
Landlord  liable  for  damages.   Promptly  after  the   determination   of  the
Commencement  Date,  Landlord and Tenant shall enter into a commencement  letter
agreement in the form attached as EXHIBIT D which commencement  letter agreement
shall be deemed  accepted by Tenant if not  executed and returned to Landlord by
Tenant  within 30 days after the date that  Landlord  delivers the  commencement
letter agreement to Tenant for execution.  If the Termination Date does not fall
on the last day of a calendar month, Landlord and Tenant may elect to adjust the
Termination Date to the last day of the calendar month in which Termination Date
occurs by the mutual execution of a commencement  letter agreement setting forth
such  adjusted  date.  The  Landlord  Work shall be deemed to be  "SUBSTANTIALLY
COMPLETE" on the date that all Landlord Work has been performed,  other than any
details of construction,  mechanical adjustment or any other similar matter, the
non-completion  of which does not materially  interfere with Tenant's use of the
Premises.  If Landlord is delayed in the  performance  of the Landlord Work as a
result of the acts or omissions of Tenant,  the Tenant Related Parties  (defined
in Section 13) or their respective  contractors or vendors,  including,  without
limitation,  changes requested by Tenant to approved plans,  Tenant's failure to
comply with any of its obligations under this Lease, or the specification of any
materials or  equipment  with long lead times (a "TENANT  DELAY"),  the Landlord
Work  shall be deemed to be  Substantially  Complete  on the date that  Landlord
could reasonably have been expected to Substantially  Complete the Landlord Work
absent any Tenant Delay.

2. 3.02 Subject to Landlord's obligation,  if any, to perform Landlord Work, the
Premises are accepted by Tenant in "as is" condition and  configuration  without
any  representations  or  warranties  by Landlord.  By taking  possession of the
Premises,  Tenant  agrees that the Premises  are in good order and  satisfactory
condition.  Notwithstanding  the foregoing,  Landlord  shall be responsible  for
latent  defects in the Landlord  Work of which Tenant  notifies  Landlord to the
extent that the correction of such defects is covered under

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valid and enforceable warranties given Landlord by contractors or subcontractors
performing the Landlord Work.  Landlord,  at its option,  may pursue such claims
directly or assign any such warranties to Tenant for enforcement. Landlord shall
not be liable for a failure to deliver  possession  of the Premises or any other
space due to the holdover or unlawful possession of such space by another party,
however Landlord shall use reasonable efforts to obtain possession of the space.
The commencement date for the space, in such event, shall be postponed until the
date Landlord delivers  possession of the Premises to Tenant free from occupancy
by any party. If Tenant takes possession of the Premises before the Commencement
Date, such possession shall be subject to the terms and conditions of this Lease
and Tenant shall pay Rent  (defined in Section 4.01) to Landlord for each day of
possession  before  the  Commencement  Date.  However,  except  for the  cost of
services requested by Tenant (e.g. freight elevator usage),  Tenant shall not be
required to pay Rent for any days of  possession  before the  Commencement  Date
during which  Tenant,  with the approval of Landlord,  is in  possession  of the
Premises  for  the  sole  purpose  of  performing   improvements  or  installing
furniture, equipment or other personal property.

4. RENT.

1. 4.01  Tenant  shall pay  Landlord,  without any setoff or  deduction,  unless
expressly set forth in this Lease, all Base Rent and Additional Rent due for the
Term  (collectively  referred  to as "RENT").  "ADDITIONAL  RENT" means all sums
(exclusive  of Base Rent) that  Tenant is required  to pay  Landlord  under this
Lease.  Tenant shall pay and be liable for all rental,  sales and use taxes (but
excluding income taxes), if any, imposed upon or measured by Rent. Base Rent and
recurring monthly charges of Additional Rent shall be due and payable in advance
on the first day of each calendar month without notice or demand,  provided that
the  installment of Base Rent for the first full calendar month of the Term, and
the first monthly  installment of Additional Rent for Expenses and Taxes,  shall
be payable upon the  execution of this Lease by Tenant.  All other items of Rent
shall be due and  payable  by  Tenant  on or before  30 days  after  billing  by
Landlord.  Rent shall be made  payable to the entity,  and sent to the  address,
Landlord  designates and shall be made by good and sufficient  check or by other
means acceptable to Landlord.  Tenant shall pay Landlord an  administration  fee
equal to 5% of all past due Rent,  provided  that Tenant  shall be entitled to a
grace period of 5 days for the first 2 late payments of Rent in a calendar year.
In addition,  past due Rent shall accrue  interest at 12% per annum.  Landlord's
acceptance of less than the correct amount of Rent shall be considered a payment
on account of the earliest  Rent due. Rent for any partial month during the Term
shall be prorated. No endorsement or statement on a check or letter accompanying
payment shall be considered an accord and satisfaction. Tenant's covenant to pay
Rent is independent of every other covenant in this Lease.

2. 4.02  Tenant  shall pay  Tenant's  Pro Rata  Share of Taxes and  Expenses  in
accordance with EXHIBIT B of this Lease.

3. 5. COMPLIANCE WITH LAWS; USE.

     The  Premises  shall be used  for the  Permitted  Use and for no other  use
whatsoever. Tenant shall comply with all applicable statutes, codes, ordinances,
orders, rules and regulations of any municipal or governmental entity whether in
effect now or later,  including the Americans with  Disabilities Act ("LAW(S)"),
regarding   the  operation  of  Tenant's   business  and  the  use,   condition,
configuration and occupancy of the Premises.  In addition,  Tenant shall, at its
sole cost and  expense,  promptly  comply with any Laws that relate to the "Base
Building" (defined below), but only to the extent such obligations are triggered
by  Tenant's  use of the  Premises,  other  than  for  general  office  use,  or
Alterations or  improvements  in the Premises  performed or requested by Tenant.
"BASE  BUILDING"  shall include the  structural  portions of the  Building,  the
public  restrooms and the Building  mechanical,  electrical and plumbing systems
and  equipment  located in the  internal  core of the  Building  on the floor or
floors on which the Premises are located. Tenant shall promptly provide Landlord
with copies of any notices it receives  regarding  an alleged  violation of Law.
Tenant shall comply with the rules and  regulations of the Building  attached as
EXHIBIT E and such other  reasonable  rules and regulations  adopted by Landlord
from  time to time,  including  rules and  regulations  for the  performance  of
Alterations (defined in Section 9).

6. SECURITY DEPOSIT.

     The Security  Deposit,  if any,  shall be  delivered  to Landlord  upon the
execution  of this Lease by Tenant and held by Landlord  without  liability  for
interest  (unless  required by Law) as security for the  performance of Tenant's
obligations. The Security Deposit is not an advance payment of Rent or a measure
of damages. Landlord may use all or a portion of the Security Deposit to satisfy
past due Rent or to cure any  Default  (defined  in Section  18) by  Tenant.  If
Landlord uses any portion of the Security Deposit,  Tenant shall,  within 5 days
after  demand,  restore the Security  Deposit to its original  amount.  Landlord
shall return any unapplied  portion of the Security  Deposit to Tenant within 45
days after the later to occur of: (a)  determination  of the final Rent due from
Tenant;  or (b) the later to occur of the  Termination  Date or the date  Tenant
surrenders the Premises to Landlord in compliance  with Section 25. Landlord may
assign the Security  Deposit to a successor or  transferee  and,  following  the
assignment,

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<PAGE>

Landlord shall have no further liability for the return of the Security Deposit.
Landlord  shall not be required to keep the Security  Deposit  separate from its
other  accounts.  Tenant hereby waives the  provisions of Section  1950.7 of the
California  Civil Code, or any similar or successor  Laws now or  hereinafter in
effect.

7. BUILDING SERVICES.

     7.01 Landlord shall furnish Tenant with the following  services:  (a) water
for use in the Base Building lavatories; (b) customary heat and air conditioning
in season during Building Service Hours.  Tenant shall have the right to receive
HVAC service during hours other than Building Service Hours by paying Landlord's
then standard charge for additional HVAC service and providing such prior notice
as is  reasonably  specified by Landlord;  (c)  standard  janitorial  service on
Business  Days; (d) Elevator  service;  (e)  Electricity in accordance  with the
terms and  conditions in Section 7.02;  and (f) such other  services as Landlord
reasonably  determines are necessary or appropriate for the Property.  As of the
date  hereof,  Landlord's  charge for after hours  heating and air  conditioning
service  is $175.00  per hour,  subject  to change  from time to time.  Landlord
specifically  agrees  that any  increases  in such charge for  after-hours  HVAC
service shall be limited to increases in Landlord's actual,  reasonable costs of
supplying the after-hours HVAC services.

1. 7.02 Electricity used by Tenant in the Premises shall, at Landlord's  option,
be paid for by Tenant  either:  (a) through  inclusion  in  Expenses  (except as
provided  for  excess  usage);  (b) by a  separate  charge  payable by Tenant to
Landlord; or (c) by separate charge billed by the applicable utility company and
payable  directly by Tenant.  Without the consent of  Landlord,  Tenant's use of
electrical  service shall not exceed,  either in voltage,  rated  capacity,  use
beyond Building  Service Hours or overall load,  that which Landlord  reasonably
deems to be standard for the Building.  Landlord shall have the right to measure
electrical usage by commonly accepted methods. If it is reasonably determined by
Landlord that Tenant is using excess electricity,  Tenant shall pay Landlord for
the cost of such excess electrical usage as Additional Rent.

2. 7.03  Landlord's  failure to furnish,  or any  interruption,  diminishment or
termination  of  services  due to the  application  of Laws,  the failure of any
equipment,  the performance of repairs,  improvements  or  alterations,  utility
interruptions or the occurrence of an event of Force Majeure (defined in Section
26.03)  (collectively  a "SERVICE  FAILURE") shall not render Landlord liable to
Tenant,  constitute a constructive eviction of Tenant, give rise to an abatement
of Rent,  nor relieve  Tenant  from the  obligation  to fulfill any  covenant or
agreement.  However, if the Premises, or a material portion of the Premises, are
made  untenantable  for a period in excess of 3  consecutive  Business Days as a
result of a Service Failure that is reasonably within the control of Landlord to
correct,  then  Tenant,  as its sole  remedy,  shall be  entitled  to receive an
abatement  of Rent  payable  hereunder  during the period  beginning  on the 4th
consecutive  Business  Day of the  Service  Failure  and  ending  on the day the
service  has been  restored.  If the  entire  Premises  have  not been  rendered
untenantable by the Service Failure,  the amount of abatement shall be equitably
prorated.  Notwithstanding  the  foregoing,  if a Service  Failure is reasonably
within the control of Landlord and (a) continues for 180 consecutive  days after
the Service Failure and (b) is not being diligently  remedied by Landlord,  then
Tenant,  as its sole  remedy,  shall have the right to elect to  terminate  this
Lease  within  10 days  after  the  expiration  of said 180 day  period  without
penalty,  by  delivering  written  notice to Landlord of its  election  thereof;
provided,  however, if Landlord is diligently pursuing the repair or restoration
of the service,  Tenant shall not be entitled to terminate  the Lease but rather
Tenant's  sole remedy shall be to abate Rent as provided  above.  The  foregoing
termination right shall not apply if the Service Failure is due to fire or other
casualty.  Instead,  in such an event,  the terms and  provisions  of Section 16
shall apply.

3. 8. LEASEHOLD IMPROVEMENTS.

     All  improvements  in  and  to  the  Premises,  including  any  Alterations
(collectively,  "LEASEHOLD  IMPROVEMENTS") shall remain upon the Premises at the
end of the Term without  compensation to Tenant.  Landlord,  however, by written
notice to Tenant at least 30 days prior to the  Termination  Date,  may  require
Tenant,  at its  expense,  to remove (a) any Cable  (defined  in  Section  9.01)
installed  by or for  the  benefit  of  Tenant,  and (b)  any  Landlord  Work or
Alterations that, in Landlord's reasonable judgment,  are of a nature that would
require  removal and repair costs that are  materially  in excess of the removal
and repair costs  associated  with standard  office  improvements  (collectively
referred  to as  "REQUIRED  REMOVABLES").  Required  Removables  shall  include,
without  limitation,  internal  stairways,  raised  floors,  personal  baths and
showers,   vaults,   rolling  file  systems  and  structural   alterations   and
modifications.  The designated  Required  Removables  shall be removed by Tenant
before  the  Termination   Date.  Tenant  shall  repair  damage  caused  by  the
installation or removal of Required  Removables.  If Tenant fails to perform its
obligations  in a timely  manner,  Landlord  may  perform  such work at Tenant's
expense. Tenant, at the time it requests approval for a proposed Alteration, may
request in writing that  Landlord  advise Tenant  whether the  Alteration or any
portion of the Alteration is a Required Removable.  Within 10 days after receipt
of  Tenant's  request,  Landlord  shall  advise  Tenant in  writing  as to which
portions  of  the  Alteration  are  Required  Removables.   Notwithstanding  the
foregoing,  Tenant  shall not be required to remove any portion of the  Landlord
Work shown on the Plans as of the date of this Lease,  as such terms are defined
in  Exhibit  C.
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9. REPAIRS AND ALTERATIONS.

     9.01  Tenant  shall  periodically  inspect the  Premises  to  identify  any
conditions  that are dangerous or inneed of maintenance or repair.  Tenant shall
promptly provide  Landlord with notice of any such conditions.  Tenant shall, at
its sole cost and expense,  perform all  maintenance and repairs to the Premises
that are not Landlord's  express  responsibility  under this Lease, and keep the
Premises  in good  condition  and  repair,  reasonable  wear and tear  excepted.
Tenant's repair and maintenance obligations include, without limitation, repairs
to: (a) floor covering;  (b) interior  partitions;  (c) doors;  (d) the interior
side of  demising  walls;  (e)  electronic,  phone and data  cabling and related
equipment  that  is  installed  by  or  for  the  exclusive  benefit  of  Tenant
(collectively,  "CABLE");  (f) supplemental air  conditioning  units,  kitchens,
including  hot water  heaters,  plumbing,  and  similar  facilities  exclusively
serving Tenant; and (g) Alterations. To the extent Landlord is not reimbursed by
insurance  proceeds,  Tenant shall reimburse  Landlord for the cost of repairing
damage to the Building caused by the acts of Tenant,  Tenant Related Parties and
their respective contractors and vendors. If Tenant fails to make any repairs to
the Premises for more than 15 days after notice from Landlord  (although  notice
shall not be required  in an  emergency),  Landlord  may make the  repairs,  and
Tenant  shall  pay  the  reasonable  cost  of  the  repairs,  together  with  an
administrative charge in an amount equal to 10% of the cost of the repairs.

     9.02 Landlord  shall keep and maintain in good repair and working order and
perform  maintenance  upon the: (a)  structural  elements of the  Building;  (b)
mechanical (including HVAC),  electrical,  plumbing and fire/life safety systems
serving the Building in general; (c) Common Areas; (d) roof of the Building; (e)
exterior  windows of the  Building;  and (f)  elevators  serving  the  Building.
Landlord shall promptly make repairs for which Landlord is  responsible.  Tenant
hereby  waives any and all rights under and benefits of  subsection 1 of Section
1932, and Sections 1941 and 1942 of the California Civil Code, or any similar or
successor Laws now or hereinafter in effect.

     9.03 Tenant shall not make alterations,  repairs, additions or improvements
or install any Cable (collectively  referred to as "ALTERATIONS")  without first
obtaining the written consent of Landlord in each instance,  which consent shall
not be unreasonably withheld or delayed.  However,  Landlord's consent shall not
be required for any Alteration  that satisfies all of the following  criteria (a
"COSMETIC  ALTERATION"):   (a)  is  of  a  cosmetic  nature  such  as  painting,
wallpapering, hanging pictures and installing carpeting; (b) is not visible from
the exterior of the Premises or Building; (c) will not affect the Base Building;
and (d) does not  require  work to be  performed  inside  the walls or above the
ceiling of the Premises.  Cosmetic Alterations shall be subject to all the other
provisions of this Section 9.03.  Prior to starting  work,  Tenant shall furnish
Landlord  with  plans  and  specifications;   names  of  contractors  reasonably
acceptable  to  Landlord   (provided   that  Landlord  may  designate   specific
contractors  with respect to Base  Building);  required  permits and  approvals;
evidence of contractor's  and  subcontractor's  insurance in amounts  reasonably
required  by Landlord  and naming  Landlord as an  additional  insured;  and any
security for performance in amounts reasonably required by Landlord.  Changes to
the plans and specifications must also be submitted to Landlord for its approval
which  approval  shall  not  be  unreasonably  withheld.  Alterations  shall  be
constructed  in a good and  workmanlike  manner  using  materials  of a  quality
reasonably  approved  by  Landlord.  Tenant  shall  reimburse  Landlord  for any
reasonable  sums paid by Landlord for third party  examination of Tenant's plans
for non-Cosmetic  Alterations.  In addition, Tenant shall pay Landlord a fee for
Landlord's  oversight and coordination of any non-Cosmetic  Alterations equal to
7% of the  cost  of the  Alterations.  Upon  completion,  Tenant  shall  furnish
"as-built" plans for non-Cosmetic  Alterations,  completion  affidavits and full
and final waivers of lien.  Landlord's  approval of an  Alteration  shall not be
deemed a representation by Landlord that the Alteration complies with Law.

     9.04 Landlord,  as part of the Landlord Work,  shall install a supplemental
HVAC unit for Tenant's  usein Tenant's 2 conference  rooms in the Premises,  and
shall  install a separate  submeter  for the  supplemental  HVAC unit to measure
electricity  consumed in connection with the supplemental HVAC unit, all subject
to the terms of this Section 9.04. Tenant shall contribute the sum of $21,453.00
towards the cost of purchasing and installing  the  supplemental  HVAC units and
such amount shall be payable by Tenant to Landlord  upon demand by Landlord.  In
no event shall  Tenant be entitled to use more than its  proportionate  share of
the Building's  excess water condenser  capacity for Tenant's  supplemental HVAC
unit. The size and design of the supplemental HVAC unit, the manner in which the
supplemental HVAC unit will be vented and access outside air, if applicable,  or
the  manner  in which  Tenant  connects  to  Landlord's  condenser  water  loop,
including,  without limitation, the routing of any water lines, shall be subject
to Landlord's prior reasonable written approval. Tenant shall be responsible, at
its cost,  for  maintaining  and  repairing  the  supplemental  HVAC unit to the
reasonable satisfaction of Landlord, as well as the cost of all electricity that
is consumed in connection  with the  supplemental  HVAC unit. Upon expiration or
earlier  termination of this Lease,  title to the  supplemental  HVAC unit shall
pass to  Landlord  although,  upon the  request  of  Landlord,  Tenant  shall be
required to remove the  supplemental  HVAC unit, at Tenant's cost, in accordance
with the terms of Section 8 of the Lease.

10. ENTRY BY LANDLORD.

     Landlord may enter the  Premises to inspect,  show or clean the Premises or
to perform or facilitate the performance of repairs, alterations or additions to
the Premises or any portion of the Building.

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Except in emergencies or to provide  Building  services,  Landlord shall provide
Tenant with  reasonable  prior verbal  notice of entry and shall use  reasonable
efforts to minimize  any  interference  with  Tenant's use of the  Premises.  If
reasonably  necessary,  Landlord may  temporarily  close all or a portion of the
Premises to perform  repairs,  alterations  and  additions.  However,  except in
emergencies,  Landlord will not close the Premises if the work can reasonably be
completed on weekends and after Building Service Hours.  Entry by Landlord shall
not  constitute  a  constructive  eviction or entitle  Tenant to an abatement or
reduction of Rent. Notwithstanding the foregoing, except in emergency situations
as determined by Landlord, Landlord shall exercise reasonable efforts to perform
any entry into the Premises in a manner that is reasonably  designed to minimize
interference with the operation of Tenant's business in the Premises.

11. ASSIGNMENT AND SUBLETTING.

1. 11.01  Except in  connection  with a Permitted  Transfer  (defined in Section
11.04), Tenant shall not assign, sublease,  transfer or encumber any interest in
this  Lease  or  allow  any  third  party  to use any  portion  of the  Premises
(collectively or individually,  a "TRANSFER")  without the prior written consent
of Landlord,  which consent shall not be unreasonably  withheld,  conditioned or
delayed if Landlord does not exercise its recapture  rights under Section 11.02.
If the entity which controls the voting  shares/rights  of Tenant changes at any
time,  such change of ownership or control  shall  constitute a Transfer  unless
Tenant is an entity whose outstanding stock is listed on a recognized securities
exchange,  including,  but not limited to, the NYSE,  the NASDAQ Stock Market or
the NASDAQ  Small Cap Market  System,  or if at least 80% of its voting stock is
owned by another entity,  the voting stock of which is so listed.  Tenant hereby
waives the provisions of Section  1995.310 of the California  Civil Code, or any
similar or successor Laws, now or hereinafter in effect, and all other remedies,
including,  without  limitation,  any right at law or equity to  terminate  this
Lease, on its own behalf and, to the extent permitted under all applicable Laws,
on behalf of the proposed  transferee.  Any  attempted  Transfer in violation of
this Section is voidable by Landlord. In no event shall any Transfer,  including
a Permitted  Transfer,  release or relieve Tenant from any obligation under this
Lease.

2. 11.02  Tenant  shall  provide  Landlord  with  financial  statements  for the
proposed transferee, a fully executed copy of the proposed assignment,  sublease
or other  Transfer  documentation  and such other  information  as Landlord  may
reasonably  request.  Within 15  Business  Days after  receipt  of the  required
information  and  documentation,  Landlord  shall  either:  (a)  consent  to the
Transfer by execution of a consent agreement in a form reasonably  designated by
Landlord; (b) reasonably refuse to consent to the Transfer in writing; or (c) in
the event of an  assignment  of this Lease or subletting of more than 20% of the
Rentable  Square Footage of the Premises for more than 50% of the remaining Term
(excluding  unexercised  options),  recapture  the portion of the Premises  that
Tenant is proposing to Transfer.  If Landlord  exercises its right to recapture,
this Lease shall  automatically be amended (or terminated if the entire Premises
is being  assigned or sublet) to delete the  applicable  portion of the Premises
effective  on the  proposed  effective  date of the  Transfer.  Tenant shall pay
Landlord  a review  fee of  $1,250.00  for  Landlord's  review of any  Permitted
Transfer or  requested  Transfer.

3. 11.03 Tenant shall pay Landlord 60% of all rent and other consideration which
Tenant  receives as a result of a Transfer that is in excess of the Rent payable
to Landlord for the portion of the  Premises  and Term covered by the  Transfer.
Tenant  shall pay  Landlord for  Landlord's  share of the excess  within 30 days
after Tenant's  receipt of the excess.  Tenant may deduct from the excess,  on a
straight-line  basis, all reasonable and customary expenses directly incurred by
Tenant attributable to the Transfer. If Tenant is in Monetary Default,  Landlord
may require that all sublease  payments be made  directly to Landlord,  in which
case Tenant shall receive a credit  against Rent in the amount of Tenant's share
of payments received by Landlord.

4. 11.04  Tenant may assign  this Lease to a  successor  to Tenant by  purchase,
merger,  consolidation or reorganization (an "OWNERSHIP  CHANGE") or assign this
Lease or sublet all or a portion of the  Premises  to an  Affiliate  without the
consent of Landlord, provided that all of the following conditions are satisfied
(a "PERMITTED  TRANSFER"):  (a) Tenant is not in Default; (b) in the event of an
Ownership Change,  Tenant's  successor shall own substantially all of the assets
of Tenant and have a net worth which is at least equal to Tenant's  net worth as
of the day prior to the proposed  Ownership  Change;  (c) the Permitted Use does
not allow the Premises to be used for retail purposes; and (d) Tenant shall give
Landlord written notice at least 15 Business Days prior to the effective date of
the Permitted  Transfer.  Tenant's notice to Landlord shall include  information
and documentation evidencing the Permitted Transfer and showing that each of the
above  conditions  has  been  satisfied.  If  requested  by  Landlord,  Tenant's
successor  shall sign a commercially  reasonable  form of assumption  agreement.
"AFFILIATE"  shall mean an entity  controlled  by,  controlling  or under common
control with Tenant.

5. 12. LIENS.

     Tenant  shall not permit  mechanics'  or other  liens to be placed upon the
Property, Premises or Tenant's leasehold interest in connection with any work or
service  done or  purportedly  done  by or for  the  benefit  of  Tenant  or its
transferees.  Tenant  shall give  Landlord  notice at least 15 days prior to the
commencement  of any work in the Premises to afford  Landlord  the  opportunity,
where applicable, to post
                                       6
<PAGE>

and record  notices of  non-responsibility.  Tenant,  within 10 Business Days of
notice from Landlord,  shall fully discharge any lien by settlement,  by bonding
or by insuring  over the lien in the manner  prescribed by the  applicable  lien
Law. If Tenant  fails to do so,  Landlord  may bond,  insure  over or  otherwise
discharge  the lien.  Tenant  shall  reimburse  Landlord  for any amount paid by
Landlord, including, without limitation, reasonable attorneys' fees.

13. INDEMNITY AND WAIVER OF CLAIMS.

     Tenant  hereby  waives all claims  against and  releases  Landlord  and its
trustees, members, principals,  beneficiaries,  partners,  officers,  directors,
employees,  Mortgagees (defined in Section 23) and agents (the "LANDLORD RELATED
PARTIES")  from all  claims  for any  injury to or death of  persons,  damage to
property or business loss in any manner related to (a) Force  Majeure,  (b) acts
of third parties,  (c) the bursting or leaking of any tank, water closet,  drain
or other pipe, (d) the inadequacy or failure of any security services, personnel
or equipment,  or (e) any matter not within the reasonable  control of Landlord.
Notwithstanding the foregoing, except as provided in Section 15 to the contrary,
Tenant shall not be required to waive any claims  against  Landlord  (other than
for loss or damage to Tenant's business) where such loss or damage is due to the
negligence or willful  misconduct of Landlord or any Landlord  Related  Parties.
Nothing  herein shall be  construed  as to diminish  the repair and  maintenance
obligations of Landlord contained  elsewhere in this Lease. Except to the extent
caused by the  negligence  or willful  misconduct  of Landlord  or any  Landlord
Related Parties,  Tenant shall indemnify,  defend and hold Landlord and Landlord
Related Parties harmless against and from all liabilities, obligations, damages,
penalties,  claims,  actions,  costs, charges and expenses,  including,  without
limitation,  reasonable  attorneys' fees and other  professional fees (if and to
the extent permitted by Law) (collectively  referred to as "LOSSES"),  which may
be imposed upon, incurred by or asserted against Landlord or any of the Landlord
Related  Parties by any third party and arising out of or in connection with any
damage or injury  occurring in the Premises or any acts or omissions  (including
violations  of Law) of Tenant,  the Tenant  Related  Parties or any of  Tenant's
transferees,  contractors  or  licensees.  Except  to the  extent  caused by the
negligence  or  willful  misconduct  of Tenant or any  Tenant  Related  Parties,
Landlord  shall  indemnify,  defend  and hold  Tenant,  its  trustees,  members,
principals,  beneficiaries,  partners, officers, directors, employees and agents
("TENANT  RELATED  PARTIES")  harmless  against and from all Losses which may be
imposed  upon,  incurred  by or  asserted  against  Tenant or any of the  Tenant
Related  Parties by any third party and arising out of or in connection with the
acts or  omissions  (including  violations  of Law) of Landlord or the  Landlord
Related Parties.

14. INSURANCE.

     Tenant shall maintain the following insurance ("TENANT'S  INSURANCE"):  (a)
Commercial  General  Liability  Insurance  applicable  to the  Premises  and its
appurtenances providing, on an occurrence basis, a minimum combined single limit
of $2,000,000.00; (b) Property/Business Interruption Insurance written on an All
Risk or Special Perils form, with coverage for broad form water damage including
earthquake  sprinkler leakage,  at replacement cost value and with a replacement
cost  endorsement   covering  all  of  Tenant's  business  and  trade  fixtures,
equipment,  movable  partitions,   furniture,  merchandise  and  other  personal
property   within  the  Premises   ("TENANT'S   PROPERTY")   and  any  Leasehold
Improvements   performed  by  or  for  the  benefit  of  Tenant;   (c)  Workers'
Compensation  Insurance in amounts required by Law; and (d) Employers  Liability
Coverage of at least $1,000,000.00 per occurrence.  Any company writing Tenant's
Insurance shall have an A.M. Best rating of not less than A-VIII. All Commercial
General Liability  Insurance policies shall name as additional insureds Landlord
(or its successors and  assignees),  the managing agent for the Building (or any
successor),  EOP Operating Limited  Partnership,  Equity Office Properties Trust
and their respective members,  principals,  beneficiaries,  partners,  officers,
directors,  employees,  and agents,  and other  designees  of  Landlord  and its
successors  as the  interest of such  designees  shall  appear.  All policies of
Tenant's  Insurance shall contain  endorsements  that the insurer(s)  shall give
Landlord  and its  designees  at least 30 days'  advance  written  notice of any
cancellation,  termination,  material change or lapse of insurance. Tenant shall
provide Landlord with a certificate of insurance  evidencing  Tenant's Insurance
prior to the  earlier to occur of the  Commencement  Date or the date  Tenant is
provided with possession of the Premises,  and thereafter as necessary to assure
that Landlord always has current certificates  evidencing Tenant's Insurance. So
long as the same is available at commercially  reasonable rates,  Landlord shall
maintain so called All Risk  property  insurance on the Building at  replacement
cost value as reasonably estimated by Landlord.

15. SUBROGATION.

    Landlord and Tenant hereby waive and shall cause their respective  insurance
carriers to waive any and all rights of recovery,  claims,  actions or causes of
action  against  the other  for any loss or  damage  with  respect  to  Tenant's
Property,  Leasehold  Improvements,  the Building, the Premises, or any contents
thereof,  including  rights,  claims,  actions  and  causes of  action  based on
negligence,  which  loss or damage is (or would  have  been,  had the  insurance
required by this Lease been carried) covered by insurance.

                                        7
<PAGE>

16. CASUALTY DAMAGE.

1. 16.01 If all or any portion of the Premises  becomes  untenantable by fire or
other  casualty to the Premises  (collectively  a  "CASUALTY"),  Landlord,  with
reasonable promptness,  shall cause a general contractor selected by Landlord to
provide  Landlord  and  Tenant  with a written  estimate  of the  amount of time
required using standard working methods to Substantially Complete the repair and
restoration of the Premises and any Common Areas  necessary to provide access to
the Premises ("COMPLETION ESTIMATE").  If the Completion Estimate indicates that
the  Premises or any Common Areas  necessary  to provide  access to the Premises
cannot be made  tenantable  within 180 days from the date the repair is started,
then either  party  shall have the right to  terminate  this Lease upon  written
notice to the other  within 10 days after  receipt of the  Completion  Estimate.
Tenant,  however,  shall  not have  the  right to  terminate  this  Lease if the
Casualty was caused by the negligence or intentional misconduct of Tenant or any
Tenant Related  Parties.  In addition,  Landlord,  by notice to Tenant within 90
days  after the date of the  Casualty,  shall have the right to  terminate  this
Lease if: (1) the Premises have been materially damaged and there is less than 2
years  of the Term  remaining  on the date of the  Casualty;  (2) any  Mortgagee
requires that the  insurance  proceeds be applied to the payment of the mortgage
debt; or (3) a material  uninsured loss to the Building  occurs.  In addition to
Landlord's right to terminate as provided herein, Tenant shall have the right to
terminate  this Lease if: (a) a  substantial  portion of the  Premises  has been
damaged by fire or other casualty and such damage cannot  reasonably be repaired
within 60 days after receipt of the Completion Estimate;  (b) there is less than
1 year of the Term remaining on the date of such casualty;  (c) the casualty was
not caused by the  negligence  or willful  misconduct  of Tenant or its  agents,
employees or contractors;  and (d) Tenant provides  Landlord with written notice
of its  intent to  terminate  within 30 days after the date of the fire or other
casualty.

2.  16.02  If  this  Lease  is  not  terminated,  Landlord  shall  promptly  and
diligently,  subject to  reasonable  delays for  insurance  adjustment  or other
matters beyond Landlord's  reasonable  control,  restore the Premises and Common
Areas.  Such  restoration  shall be to  substantially  the same  condition  that
existed prior to the Casualty,  except for modifications  required by Law or any
other  modifications  to the Common  Areas deemed  desirable  by Landlord.  Upon
notice  from  Landlord,  Tenant  shall  assign  to  Landlord  (or to  any  party
designated by Landlord) all property  insurance proceeds payable to Tenant under
Tenant's  Insurance with respect to any Leasehold  Improvements  performed by or
for the  benefit  of  Tenant;  provided  if the  estimated  cost to repair  such
Leasehold  Improvements  exceeds the amount of  insurance  proceeds  received by
Landlord from Tenant's insurance carrier,  the excess cost of such repairs shall
be paid by Tenant to  Landlord  prior to  Landlord's  commencement  of  repairs.
Within 15 days of demand,  Tenant  shall also pay  Landlord  for any  additional
excess costs that are determined during the performance of the repairs. Landlord
shall not be liable  for any  inconvenience  to  Tenant,  or injury to  Tenant's
business resulting in any way from the Casualty or the repair thereof.  Provided
that Tenant is not in Default,  during any period of time that all or a material
portion of the Premises is rendered untenantable as a result of a Casualty,  the
Rent shall abate for the portion of the Premises  that is  untenantable  and not
used by Tenant.

3. 16.03 The provisions of this Lease,  including this Section 16, constitute an
express agreement between Landlord and Tenant with respect to any and all damage
to, or destruction of, all or any part of the Premises or the Property,  and any
Laws,  including,  without  limitation,  Sections  1932(2)  and  1933(4)  of the
California  Civil Code,  with  respect to any rights or  obligations  concerning
damage or  destruction  in the  absence  of an  express  agreement  between  the
parties,  and any similar or successor Laws now or hereinafter in effect,  shall
have no  application  to this Lease or any damage or  destruction  to all or any
part of the Premises or the Property.

4. 17. CONDEMNATION.

     Either party may terminate  this Lease if any material part of the Premises
is taken or condemned for any public or  quasi-public  use under Law, by eminent
domain or private  purchase in lieu thereof (a  "TAKING").  Landlord  shall also
have the right to  terminate  this Lease if there is a Taking of any  portion of
the  Building  or  Property  which  would  have a  material  adverse  effect  on
Landlord's  ability to profitably  operate the  remainder of the  Building.  The
terminating party shall provide written notice of termination to the other party
within 45 days after it first  receives  notice of the Taking.  The  termination
shall be effective on the date the physical taking occurs.  If this Lease is not
terminated,  Base  Rent and  Tenant's  Pro  Rata  Share  shall be  appropriately
adjusted to account for any  reduction in the square  footage of the Building or
Premises.  All  compensation  awarded  for a  Taking  shall be the  property  of
Landlord.  The right to receive compensation or proceeds are expressly waived by
Tenant,  however,  Tenant may file a separate  claim for  Tenant's  Property and
Tenant's reasonable  relocation expenses,  provided the filing of the claim does
not diminish the amount of Landlord's  award.  If only a part of the Premises is
subject to a Taking and this Lease is not terminated,  Landlord, with reasonable
diligence,  will  restore  the  remaining  portion of the  Premises as nearly as
practicable  to the  condition  immediately  prior to the Taking.  Tenant hereby
waives any and all rights it might  otherwise have pursuant to Section  1265.130
of the California Code of Civil Procedure, or any similar or successor Laws.

                                        8
<PAGE>

18.      EVENTS OF DEFAULT.

     Each of the  following  occurrences  shall  be a  "DEFAULT":  (a)  Tenant's
failure to pay any  portion of Rent when due,  if the  failure  continues  for 3
Business Days after written notice to Tenant ("MONETARY DEFAULT");  (b) Tenant's
failure  (other than a Monetary  Default)  to comply  with any term,  provision,
condition or covenant of this Lease,  if the failure is not cured within 15 days
after written notice to Tenant provided,  however, if Tenant's failure to comply
cannot  reasonably be cured within 15 days,  Tenant shall be allowed  additional
time (not to exceed 60 days) as is  reasonably  necessary to cure the failure so
long as Tenant begins the cure within 15 days and diligently pursues the cure to
completion;  (c) Tenant or any Guarantor becomes insolvent,  makes a transfer in
fraud of creditors, makes an assignment for the benefit of creditors,  admits in
writing its  inability  to pay its debts when due or forfeits or loses its right
to conduct  business;  (d) the leasehold estate is taken by process or operation
of Law; or (e) Tenant is in default  beyond any notice and cure period under any
other lease or agreement with Landlord at the Building or Property.  If Landlord
provides  Tenant  with notice of  Tenant's  failure to comply with any  specific
provision  of this Lease on 3  separate  occasions  during any 12 month  period,
Tenant's subsequent  violation of such provision shall, at Landlord's option, be
an incurable Default by Tenant.  All notices sent under this Section shall be in
satisfaction of, and not in addition to, notice required by Law.

19.      REMEDIES.

     19.01  Upon  the  occurrence  of any  Default  under  this  Lease,  whether
enumerated  in Section 18 or not,  Landlord  shall have the option to pursue any
one or more of the following  remedies  without any notice  (except as expressly
prescribed  herein) or demand whatsoever (and without limiting the generality of
the foregoing,  Tenant hereby  specifically waives notice and demand for payment
of Rent or other  obligations,  except for those notices  specifically  required
pursuant  to the terms of Section 18 or this  Section 19, and waives any and all
other notices or demand requirements imposed by applicable law):

[ ]. (a) Terminate  this Lease and Tenant's  right to possession of the Premises
and recover from Tenant an award of damages equal to the sum of the following:

[ ]. (i) The Worth at the Time of Award of the unpaid Rent which had been earned
at the time of  termination;

[ ]. (ii) The Worth at the Time of Award of the amount by which the unpaid  Rent
which would have been earned after  termination  until the time of award exceeds
the amount of such Rent loss that Tenant  affirmatively  proves  could have been
reasonably  avoided;

[ ]. (iii) The Worth at the Time of Award of the amount by which the unpaid Rent
for the  balance of the Term after the time of award  exceeds the amount of such
Rent loss that Tenant  affirmatively  proves could be reasonably  avoided;

[ ].  (iv)  Any  other  amount  necessary  to  compensate  Landlord  for all the
detriment  either  proximately  caused by Tenant's  failure to perform  Tenant's
obligations  under this Lease or which in the ordinary course of things would be
likely to result therefrom; and

[ ]. (v) All such other  amounts in addition to or in lieu of the  foregoing  as
may be permitted from time to time under  applicable law.

[ ]. The "WORTH AT THE TIME OF AWARD" of the  amounts  referred  to in parts (i)
and (ii) above,  shall be  computed by allowing  interest at the lesser of a per
annum rate equal to:

(A) the  greatest per annum rate of interest  permitted  from time to time under
applicable law, or

[ ]. (B) the Prime Rate plus 5%. For purposes hereof,  the "PRIME RATE" shall be
the per annum  interest rate  publicly  announced as its prime or base rate by a
federally  insured  bank  selected by Landlord in the State of  California.  The
"WORTH AT THE TIME OF AWARD" of the amount  referred  to in part  (iii),  above,
shall be computed by discounting such amount at the discount rate of the Federal
Reserve Bank of San  Francisco at the time of award plus 1%;

[ ]. (b)  Employ the  remedy  described  in  California  Civil  Code ss.  1951.4
(Landlord  may  continue  this  Lease  in  effect  after  Tenant's   breach  and
abandonment  and  recover  Rent as it  becomes  due,  if Tenant has the right to
sublet  or  assign,  subject  only  to  reasonable  limitations);  or

[ ].  (c)  Notwithstanding  Landlord's  exercise  of  the  remedy  described  in
California Civil Code ss. 1951.4 in respect of an event or events of default, at
such time  thereafter as Landlord may elect in writing,  to terminate this Lease
and Tenant's right to possession of the Premises and recover an award of damages
as provided above in Paragraph 19.01(a).

                                        9
<PAGE>

1. 19.02 The  subsequent  acceptance of Rent  hereunder by Landlord shall not be
deemed to be a waiver of any preceding breach by Tenant of any term, covenant or
condition of this Lease,  other than the failure of Tenant to pay the particular
Rent so accepted, regardless of Landlord's knowledge of such preceding breach at
the time of  acceptance of such Rent. No waiver by Landlord of any breach hereof
shall be effective unless such waiver is in writing and signed by Landlord.

2. 19.03 TENANT  HEREBY  WAIVES ANY AND ALL RIGHTS  CONFERRED BY SECTION 3275 OF
THE CIVIL CODE OF  CALIFORNIA  AND BY SECTIONS  1174 (c) AND 1179 OF THE CODE OF
CIVIL  PROCEDURE OF CALIFORNIA  AND ANY AND ALL OTHER LAWS AND RULES OF LAW FROM
TIME TO TIME IN EFFECT  DURING THE LEASE TERM  PROVIDING  THAT TENANT SHALL HAVE
ANY RIGHT TO REDEEM,  REINSTATE OR RESTORE THIS LEASE  FOLLOWING ITS TERMINATION
BY REASON OF TENANT'S BREACH.  TENANT ALSO HEREBY WAIVES,  TO THE FULLEST EXTENT
PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN ANY LITIGATION ARISING OUT OF OR
RELATING TO THIS LEASE.

3. 19.04 No right or remedy  herein  conferred  upon or  reserved to Landlord is
intended to be exclusive of any other right or remedy,  and each and every right
and remedy  shall be  cumulative  and in  addition  to any other right or remedy
given hereunder or now or hereafter existing by agreement,  applicable law or in
equity. In addition to other remedies provided in this Lease,  Landlord shall be
entitled, to the extent permitted by applicable law, to injunctive relief, or to
a decree compelling performance of any of the covenants, agreements,  conditions
or provisions of this Lease,  or to any other remedy  allowed to Landlord at law
or in equity.  Forbearance  by Landlord  to enforce one or more of the  remedies
herein  provided  upon an event of default  shall not be deemed or  construed to
constitute a waiver of such default.

4. 19.05 If Tenant is in Default of any of its  non-monetary  obligations  under
the Lease,  Landlord  shall have the right to perform such  obligations.  Tenant
shall reimburse Landlord for the reasonable cost of such performance upon demand
together  with an  administrative  charge  equal  to 7% of the  cost of the work
performed by Landlord.

5. 19.06  This  Section  19 shall be  enforceable  to the  maximum  extent  such
enforcement is not prohibited by applicable law, and the unenforceability of any
portion thereof shall not thereby render unenforceable any other portion.

6. 20. LIMITATION OF LIABILITY.

     NOTWITHSTANDING  ANYTHING TO THE  CONTRARY  CONTAINED  IN THIS  LEASE,  THE
LIABILITY OF LANDLORD  (AND OF ANY SUCCESSOR  LANDLORD)  SHALL BE LIMITED TO THE
LESSER OF (A) THE  INTEREST  OF  LANDLORD  IN THE  PROPERTY,  OR (B) THE  EQUITY
INTEREST  LANDLORD WOULD HAVE IN THE PROPERTY IF THE PROPERTY WERE ENCUMBERED BY
THIRD PARTY DEBT IN AN AMOUNT EQUAL TO 70% OF THE VALUE OF THE PROPERTY.  TENANT
SHALL LOOK SOLELY TO LANDLORD'S INTEREST IN THE PROPERTY FOR THE RECOVERY OF ANY
JUDGMENT  OR AWARD  AGAINST  LANDLORD OR ANY  LANDLORD  RELATED  PARTY.  NEITHER
LANDLORD  NOR ANY  LANDLORD  RELATED  PARTY SHALL BE  PERSONALLY  LIABLE FOR ANY
JUDGMENT OR DEFICIENCY,  AND IN NO EVENT SHALL LANDLORD OR ANY LANDLORD  RELATED
PARTY BE LIABLE TO TENANT FOR ANY LOST PROFIT,  DAMAGE TO OR LOSS OF BUSINESS OR
ANY FORM OF SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGE. BEFORE FILING SUIT FOR AN
ALLEGED  DEFAULT BY LANDLORD,  TENANT SHALL GIVE  LANDLORD AND THE  MORTGAGEE(S)
WHOM  TENANT HAS BEEN  NOTIFIED  HOLD  MORTGAGES  (DEFINED IN SECTION 23 BELOW),
NOTICE AND REASONABLE TIME TO CURE THE ALLEGED DEFAULT.

21. RELOCATION.

     Landlord,  at its  expense,  at any time  before  or during  the Term,  may
relocate  Tenant from the Premises to space of  reasonably  comparable  size and
utility  ("RELOCATION  SPACE")  on the 5th floor or higher  of the  Building  or
adjacent buildings within the same project upon 90 days' prior written notice to
Tenant.  From and after the date of the  relocation,  the Base Rent and Tenant's
Pro Rata Share shall be adjusted  based on the  rentable  square  footage of the
Relocation  Space.  Landlord shall pay Tenant's  reasonable costs of relocation,
including all costs for moving Tenant's furniture, equipment, supplies and other
personal  property,  as well as the cost of printing and distributing  change of
address  notices to  Tenant's  customers  and one month's  supply of  stationery
showing the new address. Landlord shall also reimburse Tenant for the reasonable
cost to install and connect telecommunication and data cabling in the Relocation
Space in the manner and to the extent such cabling existed in the Premises prior
to the relocation.

22. HOLDING OVER.

     If  Tenant  fails  to  surrender  all or any  part of the  Premises  at the
termination of this Lease,  occupancy of the Premises after termination shall be
that of a tenancy at sufferance.  Tenant's occupancy shall be subject to all the
terms and  provisions  of this Lease,  and Tenant  shall pay an amount (on a per
month
                                       10
<PAGE>

basis without reduction for partial months during the holdover) equal to 150% of
the sum of the Base  Rent and  Additional  Rent due for the  period  immediately
preceding  the  holdover.  No holdover by Tenant or payment by Tenant  after the
termination  of this  Lease  shall be  construed  to extend  the Term or prevent
Landlord  from  immediate  recovery  of  possession  of the  Premises by summary
proceedings  or  otherwise.  If Landlord is unable to deliver  possession of the
Premises to a new tenant or to perform improvements for a new tenant as a result
of Tenant's  holdover  and Tenant  fails to vacate the  Premises  within 15 days
after notice from Landlord, Tenant shall be liable for all damages that Landlord
suffers from the holdover.

23. SUBORDINATION TO MORTGAGES; ESTOPPEL CERTIFICATE.

     Tenant  accepts  this Lease  subject and  subordinate  to any  mortgage(s),
deed(s) of trust,  ground lease(s) or other lien(s) now or subsequently  arising
upon the Premises, the Building or the Property, and to renewals, modifications,
refinancings and extensions thereof (collectively  referred to as a "MORTGAGE").
The  party  having  the  benefit  of  a  Mortgage  shall  be  referred  to  as a
"MORTGAGEE".  This  clause  shall be  self-operative,  but upon  request  from a
Mortgagee,   Tenant  shall  execute  a  commercially  reasonable   subordination
agreement in favor of the Mortgagee.  As an alternative,  a Mortgagee shall have
the right at any time to subordinate  its Mortgage to this Lease.  Upon request,
Tenant,  without charge, shall attorn to any successor to Landlord's interest in
this Lease.  Landlord and Tenant shall each,  within 10 days after  receipt of a
written  request from the other,  execute and deliver a commercially  reasonable
estoppel  certificate to those parties as are reasonably  requested by the other
(including a Mortgagee  or  prospective  purchaser).  Without  limitation,  such
estoppel certificate may include a certification as to the status of this Lease,
the existence of any defaults and the amount of Rent that is due and payable.

24. NOTICE.

     All demands, approvals,  consents or notices (collectively referred to as a
"NOTICE")  shall be in writing and  delivered by hand or sent by  registered  or
certified  mail with return  receipt  requested or sent by overnight or same day
courier  service  at the  party's  respective  Notice  Address(es)  set forth in
Section 1. Each notice  shall be deemed to have been  received on the earlier to
occur of actual delivery or the date on which delivery is refused, or, if Tenant
has vacated the Premises or any other Notice Address of Tenant without providing
a new Notice Address,  3 days after notice is deposited in the U.S. mail or with
a courier service in the manner described above.  Either party may, at any time,
change its Notice  Address  (other than to a post office box  address) by giving
the other party written notice of the new address.

25. SURRENDER OF PREMISES.

     At the  termination of this Lease or Tenant's  right of possession,  Tenant
shall remove  Tenant's  Property from the  Premises,  and quit and surrender the
Premises to Landlord,  broom  clean,  and in good order,  condition  and repair,
ordinary  wear and  tear and  damage  which  Landlord  is  obligated  to  repair
hereunder excepted.  If Tenant fails to remove any of Tenant's Property within 2
days after termination of this Lease or Tenant's right to possession,  Landlord,
at Tenant's  sole cost and expense,  shall be entitled  (but not  obligated)  to
remove and store Tenant's  Property.  Landlord shall not be responsible  for the
value,  preservation  or  safekeeping  of Tenant's  Property.  Tenant  shall pay
Landlord,  upon demand,  the expenses and storage  charges  incurred.  If Tenant
fails to remove Tenant's  Property from the Premises or storage,  within 30 days
after  notice,  Landlord  may deem all or any part of  Tenant's  Property  to be
abandoned and title to Tenant's Property shall vest in Landlord.

26. MISCELLANEOUS.

1. 26.01 This Lease shall be  interpreted  and enforced in  accordance  with the
Laws of the State of  California  and  Landlord  and Tenant  hereby  irrevocably
consent to the jurisdiction  and proper venue of such state or commonwealth.  If
any  term  or   provision  of  this  Lease  shall  to  any  extent  be  void  or
unenforceable,  the  remainder of this Lease shall not be affected.  If there is
more than one Tenant or if Tenant is comprised of more than one party or entity,
the  obligations  imposed upon Tenant shall be joint and several  obligations of
all the parties and  entities,  and  requests or demands  from any one person or
entity  comprising  Tenant shall be deemed to have been made by all such persons
or  entities.  Notices to any one person or entity  shall be deemed to have been
given to all persons and entities.  Tenant  represents  and warrants to Landlord
that each  individual  executing this Lease on behalf of Tenant is authorized to
do so on  behalf  of  Tenant  and  that  Tenant  is  not,  and the  entities  or
individuals  constituting Tenant or which may own or control Tenant or which may
be owned or  controlled  by Tenant are not,  among the  individuals  or entities
identified  on any list  compiled  pursuant  to  Executive  Order  13224 for the
purpose of identifying suspected terrorists.

2. 26.02 If either party institutes a suit against the other for violation of or
to enforce any covenant,  term or condition of this Lease,  the prevailing party
shall  be  entitled  to  all of  its  costs  and  expenses,  including,  without
limitation,  reasonable  attorneys'  fees.  Landlord and Tenant hereby waive any
right to trial by jury in any  proceeding  based  upon a breach  of this  Lease.
Either party's failure to declare a default

                                       11
<PAGE>

immediately upon its occurrence,  or delay in taking action for a default, shall
not constitute a waiver of the default, nor shall it constitute an estoppel.

1. 26.03  Whenever a period of time is prescribed for the taking of an action by
Landlord or Tenant (other than the payment of the Security Deposit or Rent), the
period of time for the  performance  of such  action  shall be  extended  by the
number of days that the performance is actually delayed due to strikes,  acts of
God,  shortages of labor or materials,  war,  terrorist acts, civil disturbances
and other causes beyond the reasonable  control of the performing  party ("FORCE
MAJEURE").

2. 26.04  Landlord  shall have the right to transfer and assign,  in whole or in
part, all of its rights and obligations under this Lease and in the Building and
Property.  Upon transfer Landlord shall be released from any further obligations
hereunder  and Tenant  agrees to look  solely to the  successor  in  interest of
Landlord for the performance of such  obligations,  provided that, any successor
pursuant to a voluntary, third party transfer (but not as part of an involuntary
transfer  resulting  from a  foreclosure  or deed in lieu  thereof)  shall  have
assumed Landlord's obligations under this Lease.

3. 26.05  Landlord  has  delivered  a copy of this Lease to Tenant for  Tenant's
review only and the delivery of it does not  constitute an offer to Tenant or an
option.  Tenant  represents  that it has dealt  directly  with and only with the
Broker as a broker in  connection  with this Lease.  Tenant shall  indemnify and
hold Landlord and the Landlord  Related Parties  harmless from all claims of any
other brokers claiming to have represented Tenant in connection with this Lease.
Landlord shall indemnify and hold Tenant and the Tenant Related Parties harmless
from  all  claims  of any  brokers  claiming  to have  represented  Landlord  in
connection with this Lease. Equity Office Properties  Management Corp. ("EOPMC")
is  an  affiliate  of  Landlord  and  represents   only  the  Landlord  in  this
transaction.  Any  assistance  rendered  by any  agent or  employee  of EOPMC in
connection with this Lease or any subsequent  amendment or  modification  hereto
has been or will be made as an  accommodation to Tenant solely in furtherance of
consummating the transaction on behalf of Landlord, and not as agent for Tenant.

4.  26.06  Time is of the  essence  with  respect to  Tenant's  exercise  of any
expansion,  renewal or extension rights granted to Tenant. The expiration of the
Term,  whether by lapse of time,  termination  or  otherwise,  shall not relieve
either party of any obligations  which accrued prior to or which may continue to
accrue after the expiration or termination of this Lease.

5. 26.07 Tenant may peacefully have, hold and enjoy the Premises, subject to the
terms of this Lease, provided Tenant pays the Rent and fully performs all of its
covenants and  agreements.  This covenant shall be binding upon Landlord and its
successors  only  during its or their  respective  periods of  ownership  of the
Building.

6.  26.08 This Lease does not grant any rights to light or air over or about the
Building. Landlord excepts and reserves exclusively to itself any and all rights
not specifically  granted to Tenant under this Lease. This Lease constitutes the
entire  agreement  between the parties and supersedes  all prior  agreements and
understandings related to the Premises,  including all lease proposals,  letters
of intent  and other  documents.  Neither  party is relying  upon any  warranty,
statement  or  representation  not  contained  in this Lease.  This Lease may be
modified only by a written  agreement signed by an authorized  representative of
Landlord and Tenant.

                                       12
<PAGE>

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

                    LANDLORD:

                    CA-301 HOWARD STREET LIMITED
                    PARTNERSHIP, A DELAWARE LIMITED PARTNERSHIP

                    By:     EOM GP, L.L.C., a Delaware limited liability
                            company, its general partner

                            By: Equity Office Management, L.L.C., a Delaware
                                limited liability company, its nonmember manager

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

                                Name:
                                     ---------------------------------

                                Title:
                                      --------------------------------

                    TENANT:

                    SONOMA COLLEGE, INC., A CALIFORNIA CORPORATION

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

                                 Name:
                                      ---------------------------------

                                 Title:
                                       --------------------------------

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

                                 Name:
                                      ---------------------------------

                                 Title:
                                       --------------------------------

                                          TENANT'S TAX ID NUMBER (SSN OR FEIN)

                                       13
<PAGE>

                                    EXHIBIT A

                        OUTLINE AND LOCATION OF PREMISES

This  Exhibit is attached to and made a part of the Lease by and between  CA-301
HOWARD STREET LIMITED PARTNERSHIP,  A DELAWARE LIMITED PARTNERSHIP  ("Landlord")
and SONOMA COLLEGE,  INC., A CALIFORNIA  CORPORATION ("Tenant") for space in the
Building located at 301 Howard Street, San Francisco, California.

                                        1
<PAGE>

                                    EXHIBIT B

                               EXPENSES AND TAXES

This  Exhibit is attached to and made a part of the Lease by and between  CA-301
HOWARD STREET LIMITED PARTNERSHIP,  A DELAWARE LIMITED PARTNERSHIP  ("Landlord")
and SONOMA COLLEGE,  INC., A CALIFORNIA  CORPORATION ("Tenant") for space in the
Building located at 301 Howard Street, San Francisco, California.

     1. PAYMENTS.

1. 1.01 Tenant shall pay Tenant's Pro Rata Share of the amount, if any, by which
Expenses  (defined below) for each calendar year during the Term exceed Expenses
for the Base Year (the "EXPENSE  EXCESS") and also the amount,  if any, by which
Taxes  (defined  below) for each  calendar year during the Term exceed Taxes for
the Base Year (the "TAX  EXCESS").  If  Expenses or Taxes in any  calendar  year
decrease  below the amount of Expenses or Taxes for the Base Year,  Tenant's Pro
Rata Share of  Expenses  or Taxes,  as the case may be, for that  calendar  year
shall be $0.  Landlord  shall provide  Tenant with a good faith  estimate of the
Expense  Excess and of the Tax Excess for each calendar year during the Term. On
or before the first day of each  month,  Tenant  shall pay to Landlord a monthly
installment  equal to  one-twelfth  of  Tenant's  Pro Rata  Share of  Landlord's
estimate  of both the Expense  Excess and Tax  Excess.  After its receipt of the
revised  estimate,  Tenant's  monthly  payments  shall be based upon the revised
estimate.  If Landlord  does not provide  Tenant with an estimate of the Expense
Excess or the Tax Excess by January 1 of a calendar year,  Tenant shall continue
to pay monthly  installments  based on the  previous  year's  estimate(s)  until
Landlord provides Tenant with the new estimate.

2.  1.02 As soon  as is  practical  following  the  end of each  calendar  year,
Landlord  shall  furnish  Tenant with a  statement  of the actual  Expenses  and
Expense  Excess and the actual Taxes and Tax Excess for the prior calendar year.
If the estimated  Expense  Excess or estimated Tax Excess for the prior calendar
year is more than the actual  Expense  Excess or actual Tax Excess,  as the case
may be, for the prior calendar year, Landlord shall either provide Tenant with a
refund or apply any  overpayment by Tenant against  Additional  Rent due or next
becoming  due,  provided if the Term  expires  before the  determination  of the
overpayment,  Landlord  shall  refund  any  overpayment  to Tenant  after  first
deducting the amount of Rent due. If the estimated  Expense  Excess or estimated
Tax Excess for the prior calendar year is less than the actual Expense Excess or
actual Tax  Excess,  as the case may be, for such prior year,  Tenant  shall pay
Landlord,  within 30 days after its  receipt of the  statement  of  Expenses  or
Taxes, any underpayment for the prior calendar year.

     2. EXPENSES.

     2.01 "EXPENSES" means all costs and expenses incurred in each calendar year
in connection with operating, maintaining,  repairing, and managing the Building
and the Property.  Expenses include, without limitation: (a) all labor and labor
related costs, including wages, salaries,  bonuses, taxes, insurance,  uniforms,
training,  retirement  plans,  pension plans and other  employee  benefits;  (b)
management  fees;  (c) the cost of equipping,  staffing and operating an on-site
and/or off-site  management office for the Building,  provided if the management
office services one or more other buildings or properties,  the shared costs and
expenses of equipping, staffing and operating such management office(s) shall be
equitably prorated and apportioned  between the Building and the other buildings
or properties;  (d) accounting  costs; (e) the cost of services;  (f) rental and
purchase cost of parts,  supplies,  tools and equipment;  (g) insurance premiums
and  deductibles;  (h)  electricity,  gas and other utility  costs;  and (i) the
amortized cost of capital  improvements (as distinguished from replacement parts
or components  installed in the ordinary  course of business) made subsequent to
the Base Year which are: (1)  performed  primarily  to reduce  current or future
operating  expense costs,  upgrade  Building  security or otherwise  improve the
operating  efficiency of the Property,  provided that Landlord,  based on expert
third party  advice,  reasonably  believes  that such  improvements  will reduce
operating expense costs or improve the operating efficiency of the Building;  or
(2) required to comply with any Laws that are enacted,  or first  interpreted to
apply to the  Property,  after  the  date of this  Lease.  The  cost of  capital
improvements  shall be  amortized  by  Landlord  over the lesser of the  Payback
Period  (defined  below)  or the  useful  life  of the  capital  improvement  as
reasonably  determined by Landlord.  The amortized cost of capital  improvements
may, at Landlord's  option,  include actual or imputed interest at the rate that
Landlord would  reasonably be required to pay to finance the cost of the capital
improvement. "PAYBACK PERIOD" means the reasonably estimated period of time that
it takes for the cost savings resulting from a capital  improvement to equal the
total cost of the capital improvement.  In addition, Expenses shall also include
all costs and  expenses  incurred in  connection  with  operating,  maintaining,
repairing and managing that certain property commonly known as 195 Beale Street,
San  Francisco,  California  ("195  Beale").  Landlord,  by itself or through an
affiliate,  shall have the right to directly perform, provide and be compensated
for any services under this Lease.  If Landlord incurs Expenses for the Building
or Property  together with one or more other  buildings or  properties,  whether
pursuant to a reciprocal easement agreement, common area agreement or otherwise,
the shared costs and expenses shall be equitably

                                        1
<PAGE>

prorated  and  apportioned  between  the  Building  and  Property  and the other
buildings or properties.  However,  notwithstanding the preceding sentence,  all
costs  and  expenses  relating  to 195  Beale  shall  be  allocated  100% to the
Property.

1. 2.02 Expenses shall not include:  the cost of capital improvements (except as
set  forth  above);  depreciation;  principal  payments  of  mortgage  and other
non-operating debts of Landlord; the cost of repairs or other work to the extent
Landlord  is  reimbursed  by  insurance  or  condemnation  proceeds;   costs  in
connection with leasing space in the Building,  including brokerage commissions;
lease  concessions,  rental  abatements and construction  allowances  granted to
specific  tenants;  costs  incurred in  connection  with the sale,  financing or
refinancing of the Building;  fines,  interest and penalties incurred due to the
late payment of Taxes or Expenses;  organizational  expenses associated with the
creation  and  operation  of  the  entity  which  constitutes  Landlord;  or any
penalties or damages that  Landlord  pays to Tenant under this Lease or to other
tenants in the Building under their respective leases.

2. 2.03 If at any time during a calendar  year the  Building is not at least 95%
occupied  or  Landlord  is not  supplying  services to at least 95% of the total
Rentable Square Footage of the Building,  Expenses shall, at Landlord's  option,
be  determined  as if the  Building  had been 95% occupied and Landlord had been
supplying  services to 95% of the Rentable  Square  Footage of the Building.  If
Expenses for a calendar year are  determined as provided in the prior  sentence,
Expenses  for  the  Base  Year  shall  also  be   determined   in  such  manner.
Notwithstanding  the  foregoing,  Landlord may  calculate the  extrapolation  of
Expenses  under this Section based on 100% occupancy and service so long as such
percentage is used  consistently for each year of the Term. The extrapolation of
Expenses  under  this  Section  shall  be  performed  in  accordance   with  the
methodology specified by the Building Owners and Managers Association.

3. 3. "TAXES" shall mean: (a) all real property  taxes and other  assessments on
the Building, the Property and 195 Beale,  including,  but not limited to, gross
receipts  taxes,  assessments  for special  improvement  districts  and building
improvement  districts,  governmental  charges, fees and assessments for police,
fire, traffic  mitigation or other governmental  service of purported benefit to
the  Property or 195 Beale,  taxes and  assessments  levied in  substitution  or
supplementation  in whole or in part of any such taxes and  assessments  and the
Property's and 195 Beale's share of any real estate taxes and assessments  under
any reciprocal easement agreement, common area agreement or similar agreement as
to the Property or 195 Beale; (b) all personal  property taxes for property that
is owned by Landlord and used in connection with the operation,  maintenance and
repair of the  Property  or 195 Beale;  and (c) all costs and fees  incurred  in
connection with seeking  reductions in any tax liabilities  described in (a) and
(b),  including,   without  limitation,  any  costs  incurred  by  Landlord  for
compliance,  review and appeal of tax  liabilities.  Without  limitation,  Taxes
shall not include any income,  capital  levy,  transfer,  capital  stock,  gift,
estate or inheritance  tax. If a change in Taxes is obtained for any year of the
Term during  which Tenant paid  Tenant's Pro Rata Share of any Tax Excess,  then
Taxes for that year will be  retroactively  adjusted and Landlord  shall provide
Tenant with a credit, if any, based on the adjustment.  Likewise, if a change is
obtained for Taxes for the Base Year,  Taxes for the Base Year shall be restated
and the Tax Excess for all subsequent  years shall be  recomputed.  Tenant shall
pay Landlord  the amount of Tenant's Pro Rata Share of any such  increase in the
Tax Excess within 30 days after Tenant's receipt of a statement from Landlord.

4. 4. AUDIT RIGHTS. Tenant, within 365 days after receiving Landlord's statement
of Expenses,  may give Landlord  written  notice  ("REVIEW  NOTICE") that Tenant
intends to review  Landlord's  records of the Expenses for the calendar  year to
which the  statement  applies.  Within a  reasonable  time after  receipt of the
Review  Notice,   Landlord  shall  make  all  pertinent  records  available  for
inspection  that are reasonably  necessary for Tenant to conduct its review.  If
any records are maintained at a location  other than the  management  office for
the Building,  Tenant may either  inspect the records at such other  location or
pay for the  reasonable  cost of copying and  shipping  the  records.  If Tenant
retains an agent to review Landlord's records, the agent must be with a CPA firm
licensed  to do  business  in the state or  commonwealth  where the  Property is
located.  Tenant shall be solely  responsible  for all costs,  expenses and fees
incurred for the audit.  Within 90 days after the records are made  available to
Tenant,  Tenant  shall  have  the  right to give  Landlord  written  notice  (an
"OBJECTION  NOTICE")  stating in  reasonable  detail any objection to Landlord's
statement  of  Expenses  for that  year.  If Tenant  fails to give  Landlord  an
Objection  Notice  within the 90 day period or fails to provide  Landlord with a
Review Notice within the 365 day period described above,  Tenant shall be deemed
to have  approved  Landlord's  statement  of  Expenses  and shall be barred from
raising any claims regarding the Expenses for that year. The records obtained by
Tenant shall be treated as  confidential.  In no event shall Tenant be permitted
to examine  Landlord's  records or to dispute any  statement of Expenses  unless
Tenant has paid and continues to pay all Rent when due.

                                        2
<PAGE>

                                    EXHIBIT C

                                  WORK LETTER

         This Exhibit is attached to and made a part of the Lease by and between
CA-301  HOWARD  STREET  LIMITED  PARTNERSHIP,  A  DELAWARE  LIMITED  PARTNERSHIP
("Landlord") and SONOMA COLLEGE,  INC., A CALIFORNIA  CORPORATION ("Tenant") for
space in the Building located at 301 Howard Street, San Francisco, California.

As used in this  Work  Letter,  the  "PREMISES"  shall  be  deemed  to mean  the
Premises, as initially defined in the attached Lease.

1. 1. Landlord shall perform improvements to the Premises in accordance with the
plans prepared by Smith Group,  dated June 10, 2004,  and most recently  revised
November 18, 2004 (the "PLANS"). The improvements to be performed by Landlord in
accordance with the Plans and the installation of the supplemental HVAC unit and
submeter to measure  electricity  usage for Tenant's 2  conference  rooms in the
Premises,   as  described  in  Section  9.04  of  the  Lease,   are  hereinafter
collectively  referred to as the "LANDLORD WORK." It is agreed that construction
of the  Landlord  Work will be  completed  at  Landlord's  sole cost and expense
(subject to the terms of Section 2 below and  subject to  Tenant's  contribution
for the supplemental  HVAC unit as set forth in Section 9.04 of the Lease) using
Building standard methods,  materials and finishes.  Landlord shall enter into a
direct  contract for the  Landlord  Work with a general  contractor  selected by
Landlord. In addition, Landlord shall have the right to select and/or approve of
any  subcontractors  used in  connection  with  the  Landlord  Work.  Landlord's
supervision  or  performance of any work for or on behalf of Tenant shall not be
deemed a  representation  by Landlord that such Plans or the  revisions  thereto
comply with applicable insurance requirements,  building codes, ordinances, laws
or  regulations,  or that the  improvements  constructed in accordance  with the
Plans and any  revisions  thereto will be adequate  for  Tenant's  use, it being
agreed  that  Tenant  shall be  responsible  for all  elements  of the design of
Tenant's   plans   (including,   without   limitation,   compliance   with  law,
functionality  of  design,   the  structural   integrity  of  the  design,   the
configuration  of  the  premises  and  the  placement  of  Tenant's   furniture,
appliances and equipment).

2. 2. If Tenant shall  request any revisions to the Plans,  Landlord  shall have
such  revisions  prepared  at Tenant's  sole cost and  expense and Tenant  shall
reimburse  Landlord for the cost of preparing  any such  revisions to the Plans,
plus any applicable state sales or use tax thereon,  upon demand.  Promptly upon
completion  of the  revisions,  Landlord  shall notify  Tenant in writing of the
increased  cost in the Landlord  Work, if any,  resulting from such revisions to
the Plans.  Tenant,  within 3 Business  Days,  shall notify  Landlord in writing
whether  it  desires  to proceed  with such  revisions.  In the  absence of such
written  authorization,  Landlord  shall have the option to continue work on the
Premises  disregarding the requested  revision.  Tenant shall be responsible for
any Tenant Delay in  completion of the Premises  resulting  from any revision to
the Plans. If such revisions result in an increase in the cost of Landlord Work,
such increased costs, plus any applicable state sales or use tax thereon,  shall
be  payable  by  Tenant  upon  demand.  Notwithstanding  anything  herein to the
contrary,  all  revisions  to the Plans  shall be  subject  to the  approval  of
Landlord.

3. 3. Tenant acknowledges that the Landlord Work may be performed by Landlord in
the Premises during Building Service Hours subsequent to the Commencement  Date.
Landlord and Tenant  agree to  cooperate  with each other in order to enable the
Landlord   Work  to  be  performed  in  a  timely  manner  and  with  as  little
inconvenience to the operation of Tenant's  business as is reasonably  possible.
Notwithstanding  anything herein to the contrary, any delay in the completion of
the Landlord Work or inconvenience  suffered by Tenant during the performance of
the Landlord  Work shall not subject  Landlord to any  liability for any loss or
damage  resulting  therefrom  or  entitle  Tenant to any  credit,  abatement  or
adjustment  of Rent or other sums payable  under the Lease,  except as otherwise
specifically provided in the Lease.

4. 4. This Exhibit shall not be deemed  applicable to any additional space added
to the Premises at any time or from time to time,  whether by any options  under
the Lease or  otherwise,  or to any  portion  of the  original  Premises  or any
additions to the Premises in the event of a renewal or extension of the original
Term of the Lease,  whether by any options under the Lease or otherwise,  unless
expressly so provided in the Lease or any amendment or supplement to the Lease.

                                        1
<PAGE>

                         EXHIBIT D COMMENCEMENT LETTER

                                    (EXAMPLE)

This  Exhibit is attached to and made a part of the Lease by and between  CA-301
HOWARD STREET LIMITED PARTNERSHIP,  A DELAWARE LIMITED PARTNERSHIP  ("Landlord")
and SONOMA COLLEGE,  INC., A CALIFORNIA  CORPORATION ("Tenant") for space in the
Building located at 301 Howard Street, San Francisco, California.

Date
     -----------------------------
Tenant
      ----------------------------
Address
       ---------------------------

__

Re:      Commencement  Letter with respect to that certain Lease dated as of the
         _____ day of  __________,  _____,  by and between  CA-301 HOWARD STREET
         LIMITED PARTNERSHIP,  A DELAWARE LIMITED PARTNERSHIP,  as Landlord, and
         SONOMA COLLEGE,  INC., A CALIFORNIA  CORPORATION,  as Tenant, for 5,586
         rentable  square feet on the 5th floor of the  Building  located at 301
         Howard Street, San Francisco, California.

Dear     __________________:

         In accordance  with the terms and  conditions  of the above  referenced
Lease, Tenant accepts possession of the Premises and agrees:

1.       1.   The Commencement Date of the Lease is ___________________________;
2.       2.   The Termination Date of the Lease is ____________________________.

         Please  acknowledge  your acceptance of possession and agreement to the
terms set forth above by signing all 3 counterparts of this Commencement  Letter
in the  space  provided  and  returning  2  fully  executed  counterparts  to my
attention.  This  Commencement  Letter shall be deemed accepted by Tenant if not
executed and  returned to Landlord by Tenant  within 30 days after the date that
Landlord delivers this Commencement Letter to Tenant for execution.

Sincerely,

Authorized Signatory

Agreed and Accepted:

         Tenant: SONOMA COLLEGE, INC.

         By:
            ----------------------------
         Name:
              --------------------------
         Title:
               -------------------------
         Date:
              --------------------------

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                                    EXHIBIT E

                         BUILDING RULES AND REGULATIONS

This  Exhibit is attached to and made a part of the Lease by and between  CA-301
HOWARD STREET LIMITED PARTNERSHIP,  A DELAWARE LIMITED PARTNERSHIP  ("Landlord")
and SONOMA COLLEGE,  INC., A CALIFORNIA  CORPORATION ("Tenant") for space in the
Building located at 301 Howard Street, San Francisco, California.

         The following rules and regulations shall apply,  where applicable,  to
the Premises,  the Building,  the parking  facilities (if any), the Property and
the  appurtenances.  In the event of a conflict  between the following rules and
regulations  and the  remainder of the terms of the Lease,  the remainder of the
terms of the Lease shall  control.  Capitalized  terms have the same  meaning as
defined in the Lease.

1. 1. Sidewalks,  doorways, vestibules, halls, stairways and other similar areas
shall not be  obstructed  by Tenant or used by Tenant for any purpose other than
ingress and egress to and from the  Premises.  No  rubbish,  litter,  trash,  or
material shall be placed,  emptied,  or thrown in those areas.  At no time shall
Tenant permit  Tenant's  employees to loiter in Common Areas or elsewhere  about
the Building or Property.

2. 2. Plumbing  fixtures and appliances  shall be used only for the purposes for
which  designed and no sweepings,  rubbish,  rags or other  unsuitable  material
shall be thrown or placed in the  fixtures or  appliances.  Damage  resulting to
fixtures or appliances  by Tenant,  its agents,  employees or invitees  shall be
paid for by Tenant and Landlord shall not be responsible for the damage.

3. 3. No signs,  advertisements  or  notices  shall be  painted  or  affixed  to
windows, doors or other parts of the Building, except those of such color, size,
style  and in such  places  as are  first  reasonably  approved  in  writing  by
Landlord.  All tenant  identification  and suite  numbers at the entrance to the
Premises shall be installed by Landlord, at Tenant's cost and expense, using the
standard  graphics for the Building.  Except in  connection  with the hanging of
lightweight  pictures and wall decorations,  no nails,  hooks or screws shall be
inserted  into any part of the  Premises  or  Building  except  by the  Building
maintenance  personnel without  Landlord's prior approval,  which approval shall
not be  unreasonably  withheld.

4. 4.  Landlord  may provide and maintain in the first floor (main lobby) of the
Building an  alphabetical  directory  board or other  directory  device  listing
tenants and no other directory shall be permitted unless previously consented to
by Landlord in writing which consent shall not be unreasonably  withheld.

5. 5. Tenant shall not place any lock(s) on any door in the Premises or Building
without   Landlord's  prior  written   consent,   which  consent  shall  not  be
unreasonably  withheld, and Landlord shall have the right at all times to retain
and use keys or other  access  codes or devices to all locks within and into the
Premises.  A  reasonable  number of keys to the locks on the entry  doors in the
Premises  shall be furnished  by Landlord to Tenant at Tenant's  cost and Tenant
shall not make any duplicate keys. All keys shall be returned to Landlord at the
expiration or early termination of the Lease.

6. 6. All contractors, contractor's representatives and installation technicians
performing  work in the Building shall be subject to Landlord's  prior approval,
which  approval  shall not be  unreasonably  withheld,  and shall be required to
comply with  Landlord's  standard rules,  regulations,  policies and procedures,
which may be revised from time to time.

7. 7.  Movement in or out of the Building of furniture or office  equipment,  or
dispatch or receipt by Tenant of merchandise  or materials  requiring the use of
elevators,  stairways, lobby areas or loading dock areas, shall be restricted to
hours reasonably  designated by Landlord.  Tenant shall obtain  Landlord's prior
approval by providing a detailed  listing of the activity,  which approval shall
not be  unreasonably  withheld.  If approved by Landlord,  the activity shall be
under the  supervision  of  Landlord  and  performed  in the manner  required by
Landlord.  Tenant shall assume all risk for damage to articles  moved and injury
to any persons resulting from the activity. If equipment, property, or personnel
of  Landlord  or of any other  party is  damaged or injured as a result of or in
connection  with the  activity,  Tenant shall be solely liable for any resulting
damage, loss or injury.

8. 8. Landlord shall have the right to approve the weight,  size, or location of
heavy equipment or articles in and about the Premises,  which approval shall not
be  unreasonably   withheld.   Damage  to  the  Building  by  the  installation,
maintenance,  operation,  existence  or removal of  Tenant's  Property  shall be
repaired at Tenant's sole expense.

9. 9. Corridor doors, when not in use, shall be kept closed.

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1. 10.  Tenant  shall not:  (1) make or permit any  improper,  objectionable  or
unpleasant  noises or odors in the Building,  or otherwise  interfere in any way
with other tenants or persons having business with them; (2) solicit business or
distribute  or  cause  to be  distributed,  in  any  portion  of  the  Building,
handbills,  promotional materials or other advertising; or (3) conduct or permit
other  activities  in the  Building  that might,  in  Landlord's  sole  opinion,
constitute a nuisance.

2. 11. No animals,  except those assisting handicapped persons, shall be brought
into the  Building  or kept in or about the  Premises.

3. 12. No inflammable, explosive or dangerous fluids or substances shall be used
or kept by Tenant in the Premises,  Building or about the  Property,  except for
those  substances  as are typically  found in similar  premises used for general
office  purposes and are being used by Tenant in a safe manner and in accordance
with all applicable  Laws.  Tenant shall not,  without  Landlord's prior written
consent,  use, store, install,  spill, remove,  release or dispose of, within or
about the Premises or any other portion of the Property, any asbestos-containing
materials  or  any  solid,  liquid  or  gaseous  material  now  or  subsequently
considered toxic or hazardous under the provisions of 42

         U.S.C.  Section 9601 et seq. or any other applicable  environmental Law
         which may now or later be in effect.  Tenant shall comply with all Laws
         pertaining to and  governing  the use of these  materials by Tenant and
         shall remain solely liable for the costs of abatement and removal.

1. 13.  Tenant  shall not use or occupy  the  Premises  in any manner or for any
purpose which might injure the  reputation or impair the present or future value
of the Premises or the Building. Tenant shall not use, or permit any part of the
Premises to be used for  lodging,  sleeping or for any illegal  purpose.  2. 14.
Tenant shall not take any action which would violate  Landlord's labor contracts
or which would cause a work stoppage,  picketing, labor disruption or dispute or
interfere with  Landlord's or any other tenant's or occupant's  business or with
the rights  and  privileges  of any  person  lawfully  in the  Building  ("LABOR
DISRUPTION").  Tenant  shall take the  actions  necessary  to resolve  the Labor
Disruption,  and shall have  pickets  removed  and, at the request of  Landlord,
immediately  terminate  any work in the  Premises  that  gave  rise to the Labor
Disruption,  until  Landlord  gives its written  consent for the work to resume.
Tenant shall have no claim for damages  against  Landlord or any of the Landlord
Related  Parties  nor shall the  Commencement  Date of the Term be extended as a
result of the above actions.

3. 15.  Tenant shall not install,  operate or maintain in the Premises or in any
other  area of the  Building,  electrical  equipment  that  would  overload  the
electrical  system beyond its capacity for proper,  efficient and safe operation
as determined solely by Landlord. Tenant shall not furnish cooling or heating to
the Premises,  including, without limitation, the use of electric or gas heating
devices,  without  Landlord's prior written  consent.  Tenant shall not use more
than its  proportionate  share of  telephone  lines and other  telecommunication
facilities available to service the Building.

4. 16.  Tenant  shall  not  operate  or permit  to be  operated  a coin or token
operated  vending  machine or similar  device  (including,  without  limitation,
telephones, lockers, toilets, scales, amusement devices and machines for sale of
beverages,  foods, candy,  cigarettes and other goods),  except for machines for
the exclusive use of Tenant's employees and invitees.

5. 17.  Bicycles and other vehicles are not permitted  inside the Building or on
the walkways outside the Building,  except in areas  designated by Landlord.

6. 18.  Landlord  may from time to time adopt  systems  and  procedures  for the
security and safety of the Building and the Property, its occupants,  entry, use
and contents.  Tenant, its agents, employees,  contractors,  guests and invitees
shall comply with Landlord's systems and procedures.

7. 19.  Landlord  shall  have the right to  prohibit  the use of the name of the
Building or any other  publicity by Tenant that in  Landlord's  sole opinion may
impair the reputation of the Building or its  desirability.  Upon written notice
from  Landlord,  Tenant  shall  refrain  from  and  discontinue  such  publicity
immediately.  Tenant shall have the right to refer to the Building's  address as
Tenant's  address for business during the Term so long as Tenant is in occupancy
of the Premises.

8. 20. Neither Tenant nor its agents, employees, contractors, guests or invitees
shall  smoke or permit  smoking  in the  Common  Areas,  unless a portion of the
Common Areas have been declared a designated smoking area by Landlord, nor shall
the above parties allow smoke from the Premises to emanate into the Common Areas
or any other part of the  Building.  Landlord  shall have the right to designate
the Building (including the Premises) as a non-smoking building.

9. 21.  Landlord shall have the right to designate and approve  standard  window
coverings  for the Premises  and to establish  rules to assure that the Building
presents a uniform  exterior  appearance.  Tenant  shall  ensure,  to the extent
reasonably  practicable,  that  window  coverings  are  closed on windows in the
Premises while they are exposed to the direct rays of the sun.

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1. 22.  Deliveries  to and from the Premises  shall be made only at the times in
the areas and through the entrances and exits reasonably designated by Landlord.
Tenant shall not make  deliveries to or from the Premises in a manner that might
interfere  with the use by any other  tenant of its  premises  or of the  Common
Areas,  any pedestrian use, or any use which is inconsistent  with good business
practice.  2. 23. The work of cleaning personnel shall not be hindered by Tenant
after 5:30 P.M.,  and cleaning work may be done at any time when the offices are
vacant.  Windows,  doors and fixtures  may be cleaned at any time.  Tenant shall
provide adequate waste and rubbish receptacles to prevent unreasonable  hardship
to the cleaning service.

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                                    EXHIBIT F

                              ADDITIONAL PROVISIONS

This  Exhibit is attached to and made a part of the Lease by and between  CA-301
HOWARD STREET LIMITED PARTNERSHIP,  A DELAWARE LIMITED PARTNERSHIP  ("Landlord")
and SONOMA COLLEGE,  INC., A CALIFORNIA  CORPORATION ("Tenant") for space in the
Building located at 301 Howard Street, San Francisco, California.

1. RENEWAL OPTION.

         A.       GRANT OF OPTION;  CONDITIONS.  Tenant  shall have the right to
                  extend  the Term (the  "RENEWAL  OPTION")  for one  additional
                  period  of  5  years  commencing  on  the  day  following  the
                  Termination  Date of the  initial  Term and  ending on the 5th
                  anniversary of the Termination Date (the "RENEWAL TERM"), if:

1. 1. Landlord  receives notice of exercise  ("INITIAL RENEWAL NOTICE") not less
than 9 full calendar  months prior to the expiration of the initial Term and not
more than 12 full calendar  months prior to the  expiration of the initial Term;
and

2. 2.  Tenant is not in  default  under the Lease  beyond  any  applicable  cure
periods at the time that Tenant  delivers its Initial  Renewal  Notice or at the
time Tenant delivers its Binding Notice (as defined below); and

3. 3. No part of the  Premises  is sublet  (other  than  pursuant to a Permitted
Transfer,  as  defined in  Section  11.04 of the Lease) at the time that  Tenant
delivers its Initial  Renewal Notice or at the time Tenant  delivers its Binding
Notice;  and

4. 4. The  Lease has not been  assigned  (other  than  pursuant  to a  Permitted
Transfer,  as  defined in  Section  11.04 of the  Lease)  prior to the date that
Tenant  delivers its Initial Renewal Notice or prior to the date Tenant delivers
its Binding Notice.

         B. TERMS APPLICABLE TO PREMISES DURING RENEWAL TERM.

1. 1. The  initial  Base Rent rate per  rentable  square  foot for the  Premises
during the Renewal Term shall equal the Prevailing Market (hereinafter  defined)
rate per  rentable  square foot for the  Premises.  Base Rent during the Renewal
Term shall increase,  if at all, in accordance with the increases assumed in the
determination of Prevailing  Market rate. Base Rent attributable to the Premises
shall be  payable  in  monthly  installments  in  accordance  with the terms and
conditions  of Section 4 of the Lease.

2. 2.  Tenant  shall pay  Additional  Rent  (i.e.  Taxes and  Expenses)  for the
Premises during the Renewal Term in accordance with Section 4 of the Lease,  and
the manner and method in which Tenant reimburses  Landlord for Tenant's share of
Taxes and Expenses and the Base Year, if any,  applicable to such matter,  shall
be some of the factors  considered in determining the Prevailing Market rate for
the Renewal Term.

         C.       PROCEDURE FOR DETERMINING  PREVAILING  MARKET.  Within 30 days
                  after receipt of Tenant's  Initial  Renewal  Notice,  Landlord
                  shall advise Tenant of the  applicable  Base Rent rate for the
                  Premises for the Renewal  Term.  Tenant,  within 15 days after
                  the date on which  Landlord  advises  Tenant of the applicable
                  Base Rent rate for the  Renewal  Term,  shall  either (i) give
                  Landlord final binding  written notice  ("BINDING  NOTICE") of
                  Tenant's  exercise  of its Renewal  Option,  or (ii) if Tenant
                  disagrees with Landlord's determination, provide Landlord with
                  written  notice of  rejection  (the  "REJECTION  NOTICE").  If
                  Tenant fails to provide  Landlord with either a Binding Notice
                  or  Rejection  Notice  within  such  15 day  period,  Tenant's
                  Renewal  Option shall be null and void and of no further force
                  and effect. If Tenant provides Landlord with a Binding Notice,
                  Landlord and Tenant shall enter into the Renewal Amendment (as
                  defined below) upon the terms and conditions set forth herein.
                  If Tenant provides Landlord with a Rejection Notice,  Landlord
                  and Tenant shall work together in good faith to agree upon the
                  Prevailing  Market  rate for the  Premises  during the Renewal
                  Term. When Landlord and Tenant have agreed upon the Prevailing
                  Market  rate  for  the  Premises,   such  agreement  shall  be
                  reflected in a written  agreement between Landlord and Tenant,
                  whether  in a letter or  otherwise,  and  Landlord  and Tenant
                  shall enter into the Renewal  Amendment in accordance with the
                  terms and conditions hereof. Notwithstanding the foregoing, if
                  Landlord  and Tenant  are unable to agree upon the  Prevailing
                  Market  rate for the  Premises  within 30 days  after the date
                  Tenant provides
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         Landlord with the Rejection  Notice,  Tenant's  Renewal Option shall be
         deemed to be null and void and of no force and effect.

D.       Renewal Amendment.  If Tenant is entitled to and properly exercises its
         Renewal  Option,  Landlord  shall  prepare an amendment  (the  "RENEWAL
         AMENDMENT") to reflect changes in the Base Rent, Term, Termination Date
         and other  appropriate  terms.  The Renewal  Amendment shall be sent to
         Tenant within a reasonable time after Landlord's receipt of the Binding
         Notice or other written  agreement by Landlord and Tenant regarding the
         Prevailing Market rate, and Tenant shall execute and return the Renewal
         Amendment to Landlord  within 15 days after  Tenant's  receipt of same,
         but, upon final  determination of the Prevailing Market rate applicable
         during  the  Renewal  Term as  described  herein,  an  otherwise  valid
         exercise of the Renewal Option shall be fully effective  whether or not
         the Renewal Amendment is executed.

E.       Definition of Prevailing  Market.  For purposes of this Renewal Option,
         "PREVAILING  MARKET"  shall mean the arms  length  fair  market  annual
         rental  rate  per  rentable   square  foot  under  renewal  leases  and
         amendments  entered  into on or about the date on which the  Prevailing
         Market  is being  determined  hereunder  for  space  comparable  to the
         Premises  in  the  Building  and  office  buildings  comparable  to the
         Building  in  the  downtown  San   Francisco,   California   area.  The
         determination of Prevailing Market shall take into account any material
         economic differences between the terms of this Lease and any comparison
         lease or amendment,  such as rent  abatements,  construction  costs and
         other  concessions and the manner,  if any, in which the landlord under
         any such lease is  reimbursed  for  operating  expenses and taxes.  The
         determination of Prevailing  Market shall also take into  consideration
         any reasonably  anticipated  changes in the Prevailing Market rate from
         the time such Prevailing  Market rate is being  determined and the time
         such Prevailing Market rate will become effective under this Lease.

F.       Subordination.   Notwithstanding   anything  herein  to  the  contrary,
         Tenant's  Renewal  Option is subject and  subordinate  to the expansion
         rights  (whether such rights are  designated as a right of first offer,
         right of first refusal, expansion option or otherwise) of any tenant of
         the Building existing on the date hereof.

                                        2EXHIBIT 10.14

                              CONSORTIUM AGREEMENT

                     This Academic  Consortium  Agreement made as of the 2nd day
of February,  2005 (the "EFFECTIVE DATE") by and between Sonoma College, Inc., a
California  corporation  having its  principal  place of  business at 1304 South
Point Boulevard,  Suite 280,  Petaluma  California 95442 ("SONOMA") and National
Holistic Institute,  Inc., a California corporation,  having its principal place
of business at 5900 Hollis  Street,  Suite Q,  Emeryville,  CA 94608  ("NHI" and
together with Sonoma, the "PARTIES" and each individually, a "PARTY").

                     WHEREAS  each of the Parties  has  developed  and  created,
educational,  proprietary degree and/or  certificate  programs (each a "PROGRAM"
and collectively,  "PROGRAMS") which incorporate intellectual property and other
proprietary  rights of such  Party,  including  without  limitation  Content (as
defined herein); and

                     WHEREAS,  Sonoma has  developed  proprietary  technology to
deliver its general  educational  courses to students which consists of software
methodologies  and other  proprietary  technologies,  methods,  plug-ins,  trade
secrets and know-how (the "SONOMA PLATFORM"); and

                     WHEREAS,  the Parties agree that this  academic  consortium
(the  "Consortium") will provide Sonoma's Associate of Applied Science degree in
Massage Therapy (AASMT) program to NHI students and graduates; and

                     WHEREAS,  the  Parties  agree  that  this  Consortium  will
provide NHI's Massage Therapists and Health Educator
(MTHE) program at Sonoma's campuses.

                     NOW,  THEREFORE,  in  consideration  of the  premises,  the
mutual covenants and agreements herein contained and
other valuable consideration,  the receipt, adequacy and sufficiency of which is
hereby acknowledged, the Parties covenant and agree as follows:

                     I.   DEFINITIONS.

                     "CONTENT"  means  curriculum  materials,   text,  pictures,
sound, graphics, video and data provided by a Party
to the other Party, as such materials may be modified from time to time.

                     "INTELLECTUAL  PROPERTY"  means  any and all now  known  or
hereafter  known tangible and  intangible:  (a) rights  associated with works of
authorship  throughout  the universe,  including but not limited to  copyrights,
moral rights, and mask-works, (b) trademark,  servicemark, trade dress and trade
name rights and similar rights, (c) trade secret rights,  (d) patents,  designs,
algorithms and other industrial  property rights, and (e) all other intellectual
and industrial property rights (of every kind and nature throughout the universe
and however designated,  including without limitation logos, "rental" rights and
rights to remuneration), whether arising by operation of law, contract, license,
or otherwise, and all registrations, initial applications, renewals, extensions,
continuations, divisions or reissues hereof now or hereafter in force (including
any rights in any of the foregoing).

<PAGE>

                     II.    RESPONSIBILITIES OF THE PARTIES.

                               A. The Parties  agree  that,  during the Term (as
defined  herein),  this  Consortium  will provide  Sonoma's AASMT program to NHI
students and graduates and that this  Consortium will provide NHI's MTHE program
at Sonoma's campuses.

                               B.  For  each  Program  identified   pursuant  to
Paragraph II A above (each a "Program"),  the Parties shall  complete and sign a
separate  Program  specification  (each a "PROGRAM  SPECIFICATION")  which shall
reference this Agreement,  and each such signed Program  Specification  shall be
attached as an Exhibit to this Agreement and become a part of this Agreement. It
is understood,  however, that neither Party is obligated to license the use of a
Program or any Content to the other Party until,  unless, and only to the extent
that a Program Specification is signed by both Parties.

                               C. Each Program  Specification shall describe the
Program,  the  responsibilities  of each of the Parties in  connection  with the
Program  ("RESPONSIBILITIES"),  any Content to be  delivered  to the other Party
("DELIVERABLES"),  and the effective commencement date for the program ("PROGRAM
COMMENCEMENT  DATE").  Each of the Parties shall use its best efforts to perform
its  Responsibilities  and  deliver  the  Deliverables  in  accordance  with the
schedules set forth in the Program Specification.

                     III.   GRANT OF LICENSE.

                               A.  Subject to the terms and  conditions  of this
Agreement,  each  of  the  Parties  shall  grant  the  other  Party  a  limited,
non-exclusive,  non-transferable,  world-wide  license  ("LICENSE")  to use  any
Content that it provides to the other Party pursuant to this  Agreement,  solely
to the extent expressly set forth in the applicable  Program  Specification (the
"INTENDED  USE").  All fields of use not expressly  included within the Intended
Use are specifically  excluded from the scope of the License. In no event will a
Party remove or alter any  proprietary  notice of the other Party,  or any third
party,  contained on or any of the Content  without the prior written consent of
the Party that provided such Content.

                     IV.    CONFIDENTIALITY.

                               A.   Confidential   Information.    "CONFIDENTIAL
INFORMATION"  shall include all  information  and data furnished by one Party to
the other, whether in oral, written, graphic or machine-readable form, including
without limitation, code (source and object) specifications, user, operations or
systems  manuals,  diagrams,  graphs,  models,  sketches,  technical  data, flow
charts,  research,   business  or  financial  information,   plans,  strategies,
forecasts, forecast assumptions,  business practices,  marketing information and
material,  student and suppliers names and data,  proprietary  ideas,  concepts,
know-how,  methodologies  and all other  information  related to the  disclosing
party's business. For purposes of this Agreement, Confidential Information shall
not  include,  and the  obligations  provided  hereunder  shall  not  apply  to,
information that: (a) is now or subsequently  becomes generally available to the
public  through no fault of the  recipient;  (b) recipient can  demonstrate  was
rightfully in its  possession  prior to  disclosure  by the other party;  (c) is
independently  developed by the  recipient  without the use of any  Confidential
Information  provided by the

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other party; (d) recipient rightfully obtained or obtains from a third party who
has the right,  without  obligation to the other party,  to transfer or disclose
such information;  or (e) is released or approved for release by the other party
without restriction.

                               B. Care and Protection.  Each party shall protect
the other party's  Confidential  Information using at least the same standard of
care that applies to its own similar Confidential Information, but not less than
a reasonable standard of care.

                               C.  Exceptions.  Either  party may  disclose  the
other  party's  Confidential  Information  as  required  by  any  order  of  any
government  authority,  or  otherwise  as required by law,  or as  necessary  to
establish  and  enforce  that  party's  rights  under  this  Agreement.   Before
disclosing  the  other  party's  Confidential   Information  for  such  purpose,
reasonable  effort must be made to notify the other party of the  circumstances,
and the parties shall  cooperate  with each other to obtain  protection  for the
confidentiality thereof to the extend available.

                               D.   Term  of   Confidentiality.   Each   party's
obligation to protect the other party's  Confidential  Information  shall expire
five (5) years after the date of each respective disclosure thereof.

                     All of the  provisions  of this  paragraph IV shall survive
any termination of this Agreement.

                     V.     OWNERSHIP

                     A. Each Party acknowledges and agrees that it does not have
any claim,  right,  title or  interest in or to the other  Party's  Intellectual
Property except as explicitly provided herein.  Further, each Party acknowledges
and agrees that it will use the other Party's  Intellectual  Property  solely as
expressly  permitted  under this Agreement and in a manner  consistent  with the
terms and conditions of this Agreement. Nothing contained in this Agreement will
give  either  Party  any  right,  title or  interest  in or to any  Intellectual
Property of the other Party,  except for the limited  rights  expressly  granted
hereunder.  Each Party  acknowledges  and agrees  that the other  Party (and its
licensors,  if  applicable)  has  complete  authority  to control the use of its
Intellectual  Property.   Nothing  in  this  Agreement  contemplates  the  joint
development,  joint works of authorship,  or joint ownership of any Intellectual
Property,  and this Agreement  shall not be construed so as to effect such joint
development, joint works of authorship or joint ownership. If the parties desire
to engage in any joint development efforts during the Term, the ownership rights
of such  developments  will be  established in a writing signed by an authorized
member  of each  Party and  amended  to this  Agreement.  Without  limiting  the
foregoing,  any  Content  provided by Sonoma to NHI  pursuant  to the  Agreement
("SONOMA CONTENT"), the Sonoma Platform and all associated Intellectual Property
rights are, and will remain,  the sole and  exclusive  property of Sonoma or its
third-party licensors,  and no license,  right, title, interest in and/or to the
Sonoma Content or Sonoma  Platform is granted to NHI except as set forth in this
Agreement.  Likewise, any Content or Platform provided by NHI to Sonoma pursuant
to the Agreement ("NHI CONTENT") and all associated intellectual property rights
are, and will remain, the sole

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<PAGE>

and exclusive property of NHI, and no license,  right, title, interest in and/or
to the NHI Content is granted to Sonoma except as set forth in this Agreement.

                     All of the provisions of this paragraph V shall survive any
termination of this Agreement.

                     VI.    FEES, PAYMENT AND RELATED MATTERS.

                               A. All  tuition  and all other  fees  earned  and
received  by  either  Party  from a  student  in  connection  with the  Programs
(collectively, the "TUITION FEES") less any applicable taxes, duties, discounts,
refunds or credits,  provided  that any  discounts or credits are in  accordance
with the Program  Administrator's  standard policies,  shall be collected by the
Party that maintains administration and academic oversight of the Program as set
forth in the Program  Specification (the "PROGRAM  ADMINISTRATOR").  The Parties
agree that the Party  collecting the Tuition Fees shall pay to the other Party a
percentage (the "FEE PERCENTAGE") of the Tuition Fees earned and received by the
Program  Administrator in connection with the Program (the "NET FEES"), and both
the Fee Percentage and the Net Fees shall be set forth in the applicable Program
Specification.

                               B. The Program  Administrator  shall, in its sole
discretion,  determine  the  amount of  Tuition  Fee and any other fees that are
payable by a student enrolled in a Program.

                               C. Within  twenty (20) days after the end of each
calendar month during the Term, the Program  Administrator  shall deliver to the
other Party the Fee  Percentage of the Net Fees together with a certificate of a
duly authorized and responsible  employee of the Program  Administrator  setting
forth the Net Fee calculations  during such calendar month and any and all other
information necessary for the determination of Tuition Fees payable to the other
Party under this Agreement.

                               D. The Parties agree to review the Fee Percentage
set forth in each Program  Specification  each calendar quarter of the Term. Any
amendments to the Fee Percentage  shall not be effective  unless it is stated in
writing and is executed on behalf of each Party.

                               E.  The  Program  Administrator  will  keep  such
records as will enable the Fees payable hereunder to be accurately determined by
the other Party. Such records will be retained by the Program  Administrator and
made  available to auditors  selected by the other Party for  examination at the
request and at the expense of the other Party during  reasonable  business hours
at the  offices  of  the  Program  Administrator  as set  forth  in the  Program
Specification  for a period  of at least  five (5)  years  after the date of the
transactions to which the records relate. Any confidential  information obtained
by such auditors  regarding the business of the Program  Administrator  shall be
held in strict confidence by such auditors and the other Party, except as may be
necessary to prosecute an action to collect Fees.  The Program  shall  reimburse
the other  Party for the costs of such  audit if the audit  determines  that the
Fees due as  stated in any such  certificate  is  understated  by more than five
percent (5%).

                                       4
<PAGE>

                     VII.   WARRANTIES AND COVENANTS.

                               A. Each Party does hereby  represent  and warrant
that this Agreement has been duly and validly  authorized and executed by it and
is its valid and  binding  obligation.  Each  party  further  warrants  that the
execution of this  Agreement  does not, and with the passage of time,  will not,
materially  conflict  with or  constitute  a breach  under any other  agreement,
judgment  of  instrument  to  which  it is  currently  a party or by which it is
currently bound.

                               B. Each Party does hereby  represent  and warrant
that it  currently  has all  material  licenses,  accreditations,  certificates,
permits,   consents,   franchises,   approvals,    authorizations,   and   other
authorizations  and approvals  necessary to operate each of the  Program(s)  set
forth on a Program  Specification  in the manner  required by this Agreement and
issued by appropriate entities that engage in granting or withholding  approvals
for and reguate post-secondary schools, their agents, or employees in accordance
with standards relating to the performance,  operation,  financial condition, or
academic standards of such schools, and the provision of financial assistance by
and to such schools.

                               C. Each Party does hereby  represent  and warrant
to the other  Party  that:  (i) it has the right to grant the license to use its
Content  without the other Party directly or indirectly  being required to pay a
royalty  to any  third  party;  (ii) to the  best of its  knowledge,  use of its
Content  or  any  part   thereof   will  not   infringe   upon  or  violate  the
intellectual-property,  publicity or privacy rights of any third party; (iii) to
its knowledge any of its Content will not be defamatory,  lewd,  pornographic or
obscene;  (iv) to its knowledge that its Content will be in compliance  with all
applicable  laws,  and will not violate any laws regarding  unfair  competition,
anti-discrimination  or false  advertising;  (iv) no claim  by any  third  party
contesting the validity of any  intellectual  property rights in the Content has
been made, is currently  outstanding  or, to the best knowledge of the Party, is
threatened, and the Party has not received any notice of and is not aware of any
fact indicating any infringement, misappropriation or violation by others of any
intellectual  property  rights in its Content;  (v) to its knowledge its Content
will  not  contain  any  virus,  worm,  "trojan  horse",  time  bomb or  similar
contaminating or destructive  feature ; and (vi) it will not knowingly  infringe
the patent,  copyright or other proprietary  rights in the other Party's Content
nor knowingly assist others in doing so.

                               D. EXCEPT AS STATED HEREIN,  THE SONOMA  PLATFORM
IS LICENSED  AS-IS.  IT IS  UNDERSTOOD  THAT SONOMA IS NOT MAKING AND  EXPRESSLY
DISCLAIMS ANY  REPRESENTATIONS  OR WARRANTIES  THAT THE USE OF ANY OTHER PRODUCT
MADE BY OR FOR NHI,  EXCEPT  THAT "THE  SONOMA  PLATFORM"  AS  CONTAINED  IN THE
DELIVERABLES  AND STANDING  ALONE,  WILL NOT  INFRINGE THE PATENTS,  COPYRIGHTS,
TRADEMARKS OR OTHER PROPRIETARY PROPERTY RIGHTS OF ANY THIRD PARTY.

                               E. EXCEPT AS STATED HEREIN,  EACH PARTY EXPRESSLY
DISCLAIMS ANY AND ALL  WARRANTIES OR GUARANTEES OF ANY KIND  WHATSOEVER,  EITHER
EXPRESS OR IMPLIED, INCLUDING WITHOUT

                                       5
<PAGE>

LIMITATION  ANY  WARRANTIES  OF  MERCHANTABILITY  OR  FITNESS  FOR A  PARTICULAR
PURPOSE.

                               F.  REGARDLESS OF WHETHER ANY REMEDY HEREIN FAILS
OF ITS  ESSENTIAL  PURPOSE,  IN NO EVENT  WILL  EITHER  PARTY BE LIABLE  FOR ANY
INCIDENTAL,  SPECIAL,  EXEMPLARY,  PUNITIVE,  INDIRECT OR CONSEQUENTIAL  DAMAGES
ARISING OUT OF OR RELATING IN ANY WAY TO THIS AGREEMENT,  THE CONTENT OR THE USE
OF THE SAME (INCLUDING,  WITHOUT LIMITATION,  DAMAGES FOR LOST INFORMATION, LOST
SAVINGS,  LOST  PROFITS OR BUSINESS  INTERRUPTION),  EVEN IF SUCH PARTY HAS BEEN
INFORMED,  IS AWARE,  OR SHOULD BE OR HAS BEEN AWARE, OF THE POSSIBILITY OF SUCH
DAMAGES.  IN NO EVENT WILL EITHER  PARTY BE LIABLE FOR AMOUNTS TO EXCEED THE FEE
PERCENTAGE PAYMENTS RECEIVED AS A RESULT OF THIS AGREEMENT.

                     All of the  provisions of this  paragraph VII shall survive
any termination of this Agreement.

                     VIII.  INDEMNIFICATION.

                               A.  GENERAL.  Each party agrees to indemnify  and
hold  harmless  the other and its  affiliates,  and their  respective  officers,
agents and employees,  from and against any and all loss,  liability and expense
(including  reasonable  attorneys'  fees)  suffered  or  incurred  (collectively
"DAMAGES") by reason of any third party claims, proceedings or suits based on or
arising out of: (i) breach of its representations and warranties  hereunder,  or
(ii) any claim for  infringement  of any third party  patent,  copyright,  trade
secret,  trademark  or other  proprietary  right.  Indemnification  shall  apply
provided that the party seeking indemnification has given the indemnifying party
prompt  written  notice of any such  claim,  permits the  indemnifying  party to
defend the claim and have sole control over such defense,  including appeals and
all  negotiations to affect  settlement,  and gives the  indemnifying  party all
available information and assistance as is reasonably necessary for the defense.

                               B.  REMEDIES.  If either party  believes that any
Intellectual  Property  licensed or provided under this Agreement has become, or
in  the  opinion  of  such  party  may  become,  the  subject  of  a  claim  for
infringement,  the party may, at its election  and expense:  (i) procure for the
other party the right to continue  using the same, or (ii) replace or modify the
same so that it becomes  non-infringing.  The party shall elect one of the above
remedies in the event of a preliminary or permanent court order  prohibiting use
of the  Intellectual  Property on a temporary or permanent  basis.  This section
states each party's  entire right and liability and sole and exclusive  remedies
with regard to any intellectual property infringement.

                     All of the  provisions of this paragraph VIII shall survive
any termination of this Agreement.

                                       6
<PAGE>

                     IX.    TERM AND TERMINATION.

                               A. Term. The term of this Agreement  shall be for
a period of two (2) years from the  Effective  Date (the "INITIAL  Term").  Upon
expiration of the Initial Term,  this  Agreement  shall renew for successive two
(2) year terms unless either Party shall give the other notice of its desire not
to so renew the term no less than  ninety (90) days prior to the  expiration  of
the then-current two (2) year term (the Initial Term and each such renewal term,
collectively,  the  "TERM").  Upon  expiration  of  the  Term,  all  rights  and
obligations of the parties under this Agreement shall be extinguished.

                               B.  Termination  for  Cause.   Either  party  may
terminate this Agreement during the Term as follows:

                                 (i) in the event of a breach by the other Party
of any of material term  (including  obligation to pay) of this Agreement if the
breaching  Party  fails to correct or cure the breach  within  thirty  (30) days
after  receipt  of  written  notice  stating  the  nature  of  the  breach,  the
non-breaching  Party shall have the option to: (i) continue this Agreement until
the end of the then current  student term; or (ii)  immediately  terminate  this
Agreement.

                                 (ii) the other Party is declared  insolvent  or
bankrupt,  or makes an  assignment  of  substantially  all of its assets for the
benefit of creditors,  or a receiver is appointed or any  proceeding is demanded
by, for or against the other party under any provision of the federal Bankruptcy
Act or any amendment to that Act that is not terminated within thirty (30) days.

                               C.  Effect  of   Termination   for  Cause.   Upon
Termination for Cause,  the terminated Party shall indemnify the other Party for
any Damages by reason  arising out of such parties  breach or insolvency and all
other  rights and  obligations  of the  parties  under this  Agreement  shall be
extinquished.

                               D.   Effect   of   Expiration   of  the  Term  or
Termination  without Cause.  Upon  termination or expiration of the Term for any
reason other than for Cause,  all rights and  obligations  of the parties  under
this  Agreement  shall be  extinguished,  except that:  (a) all accrued  payment
obligations hereunder shall survive such termination or expiration;  and (b) any
provisions  which must survive in order to give effect to their  meaning,  shall
survive  the  completion,   expiration,  termination  or  cancellation  of  this
Agreement.

                               E.   Within   ten  (10)   days  of  the  date  of
termination  or  expiration  of this  Agreement,  each Party shall return to the
other Party any  Deliverables  received by such Party pursuant to this Agreement
or otherwise.

                     X.     MARKETING

                               A.  Press  Release.   The  Parties  will  jointly
develop  a  press  release   announcing   this   Agreement  and  the  activities
contemplated  hereunder  which shall be issued at a time mutually  determined by
the Parties.  Prior to issuance of this initial  press  release,  neither  party
shall issue any press release on its own or make any public statement,  written,

                                       7
<PAGE>

oral, or otherwise,  regarding this  Agreement and the  activities  contemplated
hereunder, without the other Party's prior written approval.

                               B. Marketing.  Following  issuance of the initial
press release, each party has the right to indicate publicly that it has entered
into this  Agreement and may promote the other Party on its  respective Web site
and in marketing materials,  provided that each party will submit such materials
to the other Party for prior approval,  which shall not be unreasonably withheld
or delayed.  The  parties may also  jointly  engage in public  relations,  trade
shows,  trade  associations  and other  marketing  activities  in support of the
launch and ongoing promotion of this Agreement as they mutually determine.

                     XI.    MISCELLANEOUS.

                               A. Any  assignment of this Agreement by one Party
requires the written consent of the other Party.

                               B.  The  headings  and  captions   used  in  this
Agreement are for convenience only and are not to be used in the  interpretation
of this Agreement.

                               C.  The  failure  of  either   Party  to  require
performance  of any  provision of this  Agreement  shall not affect the right to
subsequently  require the  performance  of such or any other  provision  of this
Agreement.  The waiver of either Party of a breach of any provision shall not be
deemed  to be a  waiver  of any  subsequent  breach  of  that  provision  or any
subsequent breach of any other provision of this Agreement.

                               D. The Parties are  independent  contractors  and
engage in the operation of their own respective businesses. Neither Party is the
agent or employee of the other Party for any purpose whatsoever. Nothing in this
Agreement shall be construed to establish a relationship of co-partners or joint
venturers between the two Parties. Neither Party has the authority to enter into
any  contract  or to assume any  obligation  for the other  Party or to make any
warranties or representations on behalf of the other Party.

                               E. If any  provision of this  Agreement is, or is
determined to be, invalid, illegal or unenforceable, all remaining provisions of
this  Agreement  shall  nevertheless  remain in full  force and  effect,  and no
provision of this  Agreement  shall be deemed to be dependent upon any provision
so determined to be invalid, illegal or unenforceable unless otherwise expressly
provided for herein.  Should any provision of this Agreement be found or held to
be invalid, illegal or unenforceable,  in whole or in part, such provision shall
be deemed  amended to render it  enforceable  in accordance  with the spirit and
intent of this Agreement

                               F.  This   Agreement   has  been  entered   into,
delivered  and is to be governed  by,  construed,  interpreted  and  enforced in
accordance with the laws of the State of California (without giving reference to
choice-of-law provisions) from time to time in effect.

                               G. If a dispute  arises out of or relates to this
Agreement and if said dispute cannot be settled through direct discussions,  the
Parties agree to first  endeavor to settle the dispute in an amicable  manner by
mediation administered by the American

                                       8
<PAGE>

Arbitration  Association under its commercial  mediation rules of JAMS/Endispute
("JAMS"), with the following exceptions if in conflict: (a) one arbitrator shall
be chosen by JAMS; (b) each party to the arbitration will pay its pro rata share
of the expenses and fees of the arbitrator,  together with other expenses of the
arbitration  incurred or approved by the  arbitrator;  and (c)  arbitration  may
proceed in the  absence of any party if written  notice  (pursuant  to the JAMS'
rules and  regulations)  of the  proceedings  has been given to such party.  The
parties agree to abide by all decisions and awards rendered in such proceedings.
Such  decisions  and  awards  rendered  by the  arbitrator  shall be  final  and
conclusive  and may be entered  in any court  having  jurisdiction  thereof as a
basis of judgment  and of the  issuance of  execution  for its  collection.  The
Parties hereby consent to the  non-exclusive  jurisdiction  of the courts of the
State  of  California  or to any  Federal  Court  located  within  the  State of
California  for any action arising out of,  relating to, or in connection  with,
this Agreement, and to service of process in any such action by registered mail,
return receipt requested, or by any other means provided by law. Notwithstanding
anything  contained  herein  to the  contrary,  in the  event of an  arbitration
proceeding or litigation  brought  pursuant to the terms of this Agreement,  the
prevailing  Party shall be entitled to recover all costs of such  proceeding  or
litigation (including reasonable attorney fees) from the other Party.

                               H.  This   Agreement   contains  the  entire  and
exclusive  agreement  of the Parties with  respect to its subject  matter.  This
Agreement supersedes any agreements and understandings, whether written or oral,
entered  into by the Parties  prior to its  effective  date and  relating to its
subject  matter.  No  modification  or  amendment  of this  Agreement  shall  be
effective  unless it is stated in  writing,  specifically  refers  hereto and is
executed on behalf of each Party.

                               I. Any notices  required to be given or delivered
to either  party  under  the  terms of this  Agreement  will be in  writing  and
addressed to the party at the address and telephone  number  indicated  below or
such other address or telephone  number as the party may designate,  in writing,
from time to time.  All notices  will be deemed to have been given or  delivered
upon: (i) personal  delivery;  (ii) two (2) business days after deposit with any
return receipt  express courier  (prepaid);  or (iii) one (1) business day after
transmission and confirmed receipt by telecopier.

           If to Sonoma:

           1304 South Point Blvd., Suite 280
           Petaluma, CA 94954
           Attention: John Stalcup, President

           Fax: (707) 283-0808

           If to NHI:

           5900 Hollis Street, Suite Q
           Emeryville, CA 94608
           Attn: Mason Myers, President

                                       9
<PAGE>

                               J. Except for  failures to make any payment  when
due,  neither  Party hereto shall be liable to the other for failure or delay in
meeting any obligations hereunder as the result of strikes,  lockouts, war, Acts
of God, fire, flood or acts of government, if beyond the control of such Party.

                               K. This  Agreement may be executed in two or more
counterparts,  each of  which  shall  be  deemed  an  original  and all of which
together shall constitute one instrument.

                     IN WITNESS WHEREOF, the Parties hereto have set their hands
by their duly  authorized  representatives  as of the day and year  first  above
written.

Sonoma College, Inc                            National Holistic Institute, Inc.

By:                                            By:
   ------------------------------                 ------------------------------
   Name: John Stalcup, Ph.D.                      Name: Mason  Myers
   Title:   President                             Title: President

                                       10
<PAGE>

                                    EXHIBIT A

PROGRAM SPECIFICATION - ASSOCIATE OF APPLIED SCIENCE IN MASSAGE THERAPY (AASMT)

PROGRAM

Associate of Applied Science degree in Massage Therapy (AASMT) program

DELIVERABLES

Sonoma shall supply to NHI, in such a form and at such times as mutual agreed by
the Parties, the following Deliverables:

      1.  All curricula for core competency courses to be taught in the classes.

      2.  Student handbooks for the AASMT program.

      3.  AASMT Program application forms, marketing material and such other
          information as Sonoma, in its sole discretion deems necessary.

SONOMA RESPONSIBILITIES

      1.  Sonoma shall offer potential students the ability to enroll in the
          Associate of Applied Science degree in Massage Therapy (AASMT) and
          attend classes at Sonoma College's online campus.

      2.  Sonoma shall have primary responsibility for the administrative and
          academic oversight of every aspect of the AASMT Program. Sonoma shall
          perform enrollment and registration, financial aid administration,
          record keeping, and grade reporting for all students enrolled through
          NHI.

      3.  Sonoma shall provide NHI with such Sonoma Content and support as
          Sonoma reasonably deems necessary for NHI and its employees to provide
          potential students with information about the AASMT Program and submit
          an application form, which shall include without limitation marketing
          material and the AASMT Program application forms.

      4.  Sonoma shall be responsible for storing all student, faculty, and
          administrative records at the Sonoma main campus.

      5.  Sonoma shall supply NHI with sources for all textbooks that are
          required as part of the AASMT Program.

      6.  Sonoma shall provide online delivery of all courses AASMT Program
          through the Sonoma Platform to students enrolled in the AASMT Program.

      7.  Sonoma will hire qualified instructors to teach all of the online
          courses offered in the AASMT Program.

NHI RESPONSIBILITIES

      1.  NHI shall promote the AASMT Program to NHI students and graduates.

      2.  NHI shall promptly forward all leads to Sonoma it obtains for the
          AASMT Program.

FEE PERCENTAGE

Of the Tuition  Fees earned and  received by Sonoma for the AASMT  Program  from
students  provided to Sonoma by NHI,  Sonoma will subtract  twenty-five  percent
(25%) to cover direct  expenses and the remainder  will be the Net Fees pursuant
to Paragraph VI of the  Agreement.  Of

                                        1
<PAGE>

the Net Fees, Sonoma shall pay NHI a Fee Percentage of twenty-five percent (25%)
and Sonoma shall receive a Fee Percentage of seventy-five percent (75%).

MARKETING FEE TO NHI

Sonoma shall pay NHI $2,500 per month for the term of this  Agreement  beginning
at the Program  Commencement  Date.  This is in  addition to the Fee  Percentage
described  above.  At the first  anniversary of the Program  Commencement  date,
however,  Sonoma  may elect to cease  making  this  monthly  payment at its sole
discretion  provided  Sonoma  gives  notice to NHI no less than  sixty (60) days
prior to the first  anniversary  of the Program  Commencement  date and that the
restrictions contained in the Non-Compete provision shall immediately cease. NHI
will provide  documentation for NHI's marketing activities  periodically or upon
request by Sonoma.

PROGRAM COMMENCEMENT DATE

The Parties agree to use reasonable  efforts to begin the first consortium AASMT
courses at a mutually  agreed upon date as soon as practical after the Effective
Date.

ALTERNATE TERMINATION

The Parties agree that Sonoma may not teach a schedule,  unless  mutually agreed
otherwise,  where there are less than five (5)  students  actually  starting the
coursework.  The Parties also agree that after six (6) months of  operating  the
AASMT  Program,  Sonoma may cease to offer the program if the number of students
in each actual start  averages less than ten (10) students;  provided,  however,
that  in  the  event  of  such  cessation,  the  restrictions  contained  in the
Non-Compete provision shall immediately cease.

TUITION FEES AND COURSE BOOKS

The tuition fee for the AASMT  Program  offered is $8,000 in addition to student
fees which total  approximately  $250 per  semester for a total of $500 for both
semesters.  Books and  supplies  are  approximately  $500 for the  entire  AASMT
Program.  Sonoma will provide NHI students and graduates with a $500 scholarship
provided that the  scholarship  complies with all  regulatory  restrictions  and
provided  that the  scholarship  be used solely  against the  published  tuition
price.  This scholarship  shall only be available to NHI students and graduates.
And, NHI  students  and  graduates  shall be offered the best  scholarship  that
Sonoma offers any prospective student.

NHI RIGHT OF FIRST REFUSAL TO PURCHASE THE AASMT PROGRAM FROM SONOMA

Should Sonoma propose to accept a bona fide offer (a "Purchase  Offer") from any
entity to purchase the AASMT  Program,  solely as a stand alone asset and not in
conjunction  with the sale of any other assets of Sonoma,  Sonoma shall promptly
deliver a notice (the  "Notice") to NHI stating the terms and conditions of such
Purchase  Offer  including,  without  limitation,  the  assets  to  be  sold  or
transferred,  the nature of such sale or transfer, the consideration to be paid,
and the name and address of the  prospective  purchaser  or  transferee.  If the
Purchase Offer includes consideration other than cash, the cash equivalent value
of the non-cash  consideration  shall be  determined by Sonoma in good faith and
included  in the  Notice to NHI.  At any time  within 30 days of  receipt of the
Notice, NHI may, by giving written notice to Sonoma, elect to Purchase the

                                       2
<PAGE>

AASMT Program from Sonoma at the Purchase Offer. Payment of the purchase price
by NHI to Sonoma shall be within 60 days after receipt of the Notice.

NON-COMPETE

NHI agrees that for a period from the Effective Date of this Agreement until one
(1) year  after the  termination  of this  Program,  it will not offer an online
associates  degree in  massage  therapy  within any of the  following  counties:
Marin,  Sonoma,  Napa, Yolo,  Sacramento,  Solano,  Contra Costa,  Alameda,  San
Joaquin,  Santa Clara,  Santa Cruz and San Mateo.  After the termination of this
Program,  NHI has the right to immediately cancel the Restrictive  Covenants set
forth in this  Section  by  paying  $1,000  for  every  month  remaining  in the
Restrictive Covenants.

NHI  acknowledges  and agrees that the  restrictive  covenants set forth in this
Section headed  "Non-Compete"  (the "RESTRICTIVE  COVENANTS") are reasonable and
valid in geographical and temporal scope and in all other respects. If any court
determines  that  any of the  Restrictive  Covenants,  or any part  thereof,  is
invalid or unenforceable,  the remainder of the Restrictive  Covenants shall not
thereby be affected and shall be given full force and effect,  without regard to
the invalid or unenforceable parts.

If any  court  determines  that any of the  Restrictive  Covenants,  or any part
thereof,  is invalid or unenforceable for any reason,  such court shall have the
power to modify  such  Restrictive  Covenants  or any part  thereof  and, in its
modified form, such Restrictive Covenants shall then be valid and enforceable.

Sonoma College, Inc                          National Holistic Institute, Inc.

By:                                          By:
   --------------------------------              -------------------------------
   Name:  John Stalcup, Ph.D.                    Name:  Mason Myers
   Title: President                              Title: President

                                       3
<PAGE>

                                    EXHIBIT B

     PROGRAM SPECIFICATION - MASSAGE THERAPIST AND HEALTH EDUCATOR (MTHE) AT
                            SONOMA'S PETALUMA CAMPUS

PROGRAM

Massage Therapist and Health Educator (MTHE) program at Sonoma's Petaluma
campus.

NHI RESPONSIBILITIES

      1.  NHI shall offer potential students the ability to enroll in NHI's
          Massage Therapist and Health Educator (MTHE) program and attend
          classes at Sonoma's Petaluma campus.

      2.  NHI shall have primary responsibility for the administrative and
          academic oversight of every aspect of the MTHE Program. NHI shall
          perform enrollment and registration, financial aid administration,
          record keeping, and grade reporting for all students.

      3.  NHI shall provide Sonoma with such NHI Content and support as NHI
          reasonably deems necessary for Sonoma and its employees to provide
          potential students with information about the MTHE Program and submit
          an application form, which shall include without limitation marketing
          material and the MTHE Program application forms.

      4.  NHI shall be responsible for storing all student, faculty, and
          administrative records at NHI"s main campus. 5. NHI shall deliver all
          courses of the MTHE Program. 6. NHI will hire qualified instructors to
          teach all of the courses offered in the MTHE Program.

SONOMA RESPONSIBILITIES

      1.  Sonoma shall promptly forward all potential students it obtains for
          the MTHE Program to NHI.

FEE PERCENTAGE

Of the  Tuition  Fees  earned  and  received  by NHI for the MTHE  Program  from
students  provided to NHI by Sonoma,  NHI will  subtract  fifty percent (50%) to
cover  direct  expenses  and the  remainder  will be the Net  Fees  pursuant  to
Paragraph  VI of the  Agreement.  Of the Net Fees,  NHI  shall pay  Sonoma a Fee
Percentage of  twenty-five  percent (25%) and NHI shall receive a Fee Percentage
of seventy-five percent (75%).

FACILITIES FEE TO SONOMA

NHI shall pay  Sonoma a fee for usage of their  facilities  of $50 per month per
student. If the student was not in school the entire month, NHI shall pay Sonoma
a pro rata  percentage  of this  fee.  Sonoma  agrees  to allow NHI to paint and
decorate the  classroom(s)  to be used with prior approval from Sonoma on colors
and style.

                                       4
<PAGE>

PROGRAM COMMENCEMENT DATE.

The Parties agree to use reasonable  efforts to begin the first  consortium MTHE
courses at Sonoma's  Petaluma campus at a mutually  agreed-upon  date as soon as
practical after receiving all necessary approvals.

TUITION FEES AND COURSE BOOKS

The Tuition Fee for the MTHE Program offered is $12,175.

ALTERNATE TERMINATION

The Parties  agree that NHI may not teach a  schedule,  unless  mutually  agreed
otherwise,  where there are less than five (5)  students  actually  starting the
coursework.  The Parties also agree that after six (6) months of  operating  the
MTHE  Program in  Petaluma,  NHI may cease to offer the program if the number of
students in each actual start  averages less than ten (10)  students;  provided,
however,  in the event of such  cessation,  the  restrictions  contained  in the
Non-Compete provision shall immediately cease.

TRANSITION PERIOD

The Parties will mutually agree on the timing and logistics of the transition of
Sonoma's residential Petaluma massage therapy students to NHI's program.

NON-COMPETE

Sonoma agrees that for a period from the Effective Date of this agreement  until
one (1) year after the  termination  of this  Program,  the only program it will
offer  in  massage  therapy  in the  counties  of  Marin,  Sonoma,  Napa,  Yolo,
Sacramento,  Solano, Contra Costa, Alameda, San Joaquin, Santa Clara, Santa Cruz
and San Mateo  will be the  Associate  of Applied  Science  in  Massage  Therapy
(AASMT) online program.

Sonoma acknowledges and agrees that the restrictive  covenants set forth in this
Section headed  "Non-Compete"  (the "RESTRICTIVE  COVENANTS") are reasonable and
valid in geographical and temporal scope and in all other respects. If any court
determines  that  any of the  Restrictive  Covenants,  or any part  thereof,  is
invalid or unenforceable,  the remainder of the Restrictive  Covenants shall not
thereby be affected and shall be given full force and effect,  without regard to
the invalid or unenforceable parts.

If any  court  determines  that any of the  Restrictive  Covenants,  or any part
thereof,  is invalid or unenforceable for any reason,  such court shall have the
power to modify  such  Restrictive  Covenants  or any part  thereof  and, in its
modified form, such Restrictive Covenants shall then be valid and enforceable.

Sonoma College, Inc                          National Holistic Institute, Inc.

By:                                          By:
   --------------------------------             --------------------------------
   Name:  John Stalcup, Ph.D.                   Name: Mason Myers
   Title: President                             Title:   President

                                       5
<PAGE>

                                   EXHIBIT C

     PROGRAM SPECIFICATION - MASSAGE THERAPIST AND HEALTH EDUCATOR (MTHE) AT
                         SONOMA'S SAN FRANCISCO CAMPUS

PROGRAM

Massage  Therapist and Health  Educator (MTHE) program at Sonoma's San Francisco
campus.

This  Program will be separated  into two  segments,  Part I and Part II. Part I
shall apply to the time period from the Effective Date of this Agreement until a
date mutually agreed upon by both Parties to begin Part II, at which point NHI's
MTHE Program would be offered at Sonoma's San Francisco Campus.

                    PART I - MTHE AT NHI'S EMERYVILLE CAMPUS

NHI RESPONSIBILITIES

      1.  NHI shall offer potential students the ability to enroll in NHI's
          Massage Therapist and Health Educator (MTHE) program and attend
          classes at NHI's Emeryville campus.

      2.  NHI shall have primary responsibility for the administrative and
          academic oversight of every aspect of the MTHE Program. NHI shall
          perform enrollment and registration, financial aid administration,
          record keeping, and grade reporting for all students.

      3.  NHI shall provide Sonoma with such NHI Content and support as NHI
          reasonably deems necessary for Sonoma and its employees to provide
          potential students with information about the MTHE Program and submit
          an application form, which shall include without limitation marketing
          material and the MTHE Program application forms.

      4.  NHI shall be responsible for storing all student, faculty, and
          administrative records at NHI"s main campus. 5. NHI shall deliver all
          courses of the MTHE Program. 6. NHI will hire qualified instructors to
          teach all of the courses offered in the MTHE Program.

SONOMA RESPONSIBILITIES

      1.  Sonoma shall cease to enroll new students in its massage therapy
          certificate program at its San Francisco campus within sixty (60) days
          of the Effective Date. Sonoma will offer the NHI MTHE program as the
          prerequisite for Sonoma's AASMT program and NHI will work with Sonoma
          to ensure that Sonoma maintains its authority to offer the AASMT
          program.

      2.  Sonoma shall promptly forward all potential students it obtains for
          the MTHE Program to NHI.

FEE PERCENTAGE

Of the tuition revenue earned by NHI for the MTHE Program from students provided
to NHI by Sonoma, NHI will subtract fifty percent (50%) to cover direct expenses
and  the  remainder  will  be the  Net  Fees  pursuant  to  Paragraph  VI of the
Agreement. Of the Net Fees, NHI shall pay Sonoma a Fee Percentage of twenty-five
percent (25%) and NHI shall receive a Fee  Percentage  of  seventy-five  percent
(75%).

                                       6
<PAGE>

                 PART II - MTHE AT SONOMA'S SAN FRANCISCO CAMPUS

NHI RESPONSIBILITIES

      1.  NHI shall offer potential students the ability to enroll in NHI's
          Massage Therapist and Health Educator (MTHE) program and attend
          classes at Sonoma's San Francisco campus.

      2.  NHI shall have primary responsibility for the administrative and
          academic oversight of every aspect of the MTHE Program. NHI shall
          perform enrollment and registration, financial aid administration,
          record keeping, and grade reporting for all students.

      3.  NHI shall provide Sonoma with such NHI Content and support as NHI
          reasonably deems necessary for Sonoma and its employees to provide
          potential students with information about the MTHE Program and submit
          an application form, which shall include without limitation marketing
          material and the MTHE Program application forms.

      4.  NHI shall be responsible for storing all student, faculty, and
          administrative records at NHI"s main campus. 5. NHI shall deliver all
          courses of the MTHE Program. 6. NHI will hire qualified instructors to
          teach all of the courses offered in the MTHE Program.

SONOMA RESPONSIBILITIES

      1.  Sonoma shall promptly forward all potential students it obtains for
          the MTHE Program to NHI.

FEE PERCENTAGE

The Fee Percentage for Part II will be mutually agreed upon by both Parties, and
both Parties intend for the Fee  Percentage to be similar to the  following:  Of
the  tuition  revenue  earned  and  received  by NHI for the MTHE  Program  from
students  provided to NHI by Sonoma,  NHI will  subtract  fifty percent (50%) to
cover  direct  expenses  and the  remainder  will be the Net  Fees  pursuant  to
Paragraph  VI of the  Agreement.  Of the Net Fees,  NHI  shall pay  Sonoma a Fee
Percentage of  twenty-five  percent (25%) and NHI shall receive a Fee Percentage
of seventy-five percent (75%). In addition,  the Fee Percentage for Part II will
also include terms to be mutually agreed upon to protect NHI's Emeryville campus
from cannibalization.

FACILITIES FEE TO SONOMA

NHI shall pay  Sonoma a fee for usage of their  facilities  of $50 per month per
student. If the student was not in school the entire month, NHI shall pay Sonoma
a pro rata  percentage  of this  fee.  Sonoma  agrees  to allow NHI to paint and
decorate the  classroom(s)  to be used with prior approval from Sonoma on colors
and style.

ALTERNATE TERMINATION

The Parties  agree that NHI may not teach a  schedule,  unless  mutually  agreed
otherwise,  where  there are less  than  five  students  actually  starting  the
coursework.  The Parties also agree that after six (6) months of  operating  the
MTHE Program in San Francisco,  NHI may cease to offer the program if the number
of students in each  actual  start  averages  less than 10  students;  provided,
however,  in the event of such  cessation,  the  restrictions  contained  in the
Non-Compete provision shall immediately cease.

                                       7
<PAGE>

                   TERMS APPLICABLE TO BOTH PART I AND PART II

PROGRAM COMMENCEMENT DATE.

The Program  Commencement  Date for Part I shall begin at the Effective  Date of
this Agreement.  The Program Commencement Date for Part II shall begin on a date
mutually  agreed upon by both  Parties  provided  that it is after all  required
approvals  have been  received and after the Program  Commencement  Date for the
MTHE Program in Petaluma.

TUITION FEES AND COURSE BOOKS

The tuition fee for the MTHE Program offered is $12,175.

NON-COMPETE

Sonoma agrees that for a period from the Effective Date of this agreement  until
one (1) year after the  termination  of this  Program,  the only program it will
offer  in  massage  therapy  in the  counties  of  Marin,  Sonoma,  Napa,  Yolo,
Sacramento,  Solano, Contra Costa, Alameda, San Joaquin, Santa Clara, Santa Cruz
and San Mateo  will be the  Associate  of Applied  Science  in  Massage  Therapy
(AASMT) online program.

Sonoma acknowledges and agrees that the restrictive  covenants set forth in this
Section headed  "Non-Compete"  (the "RESTRICTIVE  COVENANTS") are reasonable and
valid in geographical and temporal scope and in all other respects. If any court
determines  that  any of the  Restrictive  Covenants,  or any part  thereof,  is
invalid or unenforceable,  the remainder of the Restrictive  Covenants shall not
thereby be affected and shall be given full force and effect,  without regard to
the invalid or unenforceable parts.

If any  court  determines  that any of the  Restrictive  Covenants,  or any part
thereof,  is invalid or unenforceable for any reason,  such court shall have the
power to modify  such  Restrictive  Covenants  or any part  thereof  and, in its
modified form, such Restrictive Covenants shall then be valid and enforceable.

Sonoma College, Inc                         National Holistic Institute, Inc.

By:                                         By:
   ----------------------------------          ---------------------------------
   Name: John Stalcup, Ph.D.                   Name: Mason Myers
   Title:   President                          Title:   President

                                       8

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