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                                                                   EXHIBIT 10.2

                              SCOPE PRODUCTS, INC.

                           INCENTIVE AND NON-QUALIFIED
                                STOCK OPTION PLAN
                                  July 1, 1999

     1. Purpose. The purpose of this Scope Products, Inc. Incentive and
Non-Qualified Stock Option Plan (the "Plan") is (a) to advance the interests of
Scope Products, Inc. (the "Company") and its shareholder by offering to those
key employees, including officers, of the Company or its subsidiaries who will
be responsible for the long-term growth of the Company's earnings the
opportunity to acquire or increase their equity interests in the Company,
thereby achieving a greater commonality of interest between the shareholder and
employees, and (b) to enhance the Company's ability to retain and attract highly
qualified employees by providing an additional incentive to such employees to
achieve the Company's long-term business plans and objectives.

     2. Awards. Awards under the Plan may be granted in the form of (i)
incentive stock options ("ISO's") as provided in Section 422 of the Internal
Revenue Code of 1986, as amended (the "Code"), or (ii) non-qualified stock
options ("NQSO's"). ISO's and NQSO's shall hereinafter be referred to
individually as an "Option" and collectively as "Options" in the Plan.

     3. Administration.

          a. Board. The Plan shall be administered by the Board of Directors of
the Company (the "Board").

          b. Authority. The Board shall have full and final authority with
respect to the Plan (i) to interpret all provisions of the Plan consistent with
applicable federal or state law; (ii) to determine the employees who will
receive Options; (iii) to determine the frequency of grant of Options; (iv) to
determine the number and type (i.e., ISO's or NQSO's) of Options to be granted
to each employee and the price at which they may be exercised; (v) to specify
the number of shares subject to each Option; (vi) to prescribe the form and
terms and conditions of agreements described in Section 3(c); (vii) to determine
when Options may be exercised; or (viii) to adopt, amend and rescind general and
special rules and regulations for the Plan's administration; and (ix) to make
all other determinations necessary or advisable for the administration of the
Plan but only to the extent not contrary to or inconsistent with the provisions
of the Plan. Any action of the Board of Directors shall be by majority vote.

          c. Option Agreement. The terms and conditions of each Option shall be
provided in an Option Agreement which shall be signed by the Company and the
Optionee at the time of grant. Such terms and conditions shall be consistent
with the provisions of the Plan.

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     4. Eligibility. The Board from time to time shall determine those officers
and other key employees of the Company (including any subsidiary which now
exists or may hereafter be acquired or created) to whom Options shall be granted
(the "Optionee") and the number of Shares (as defined below) to be optioned to
each Optionee. No director, outside consultant, nor other independent contractor
who is not an employee of the Company or a subsidiary shall be eligible to
receive Options under the Plan.

     In determining the number of Options to be granted to any Optionee, the
Board shall consider, among other things, the annual remuneration received by
the Optionee from the Company, the importance of the Optionee's corporate
duties, and other relevant factors. Upon approval of the Board, the appropriate
officers of the Company are hereby authorized to execute and deliver the Options
in the name of the Company.

     5. Shares Subject to Plan.

          a. Number of Shares. Subject to adjustments as provided in Sections 7b
and 9 hereof, the aggregate number of shares of common stock of the Company
("Shares") as to which Options may be granted under the Plan shall not exceed
1,000,000 Shares.

          b. Expired Options. If an Option granted hereunder shall expire or
terminate for any reason without having been fully exercised then the Shares
covered by the unexercised portion of such Option shall be available for
purposes of the Plan.

     6. Options-General Provisions.

          a. Allotment of Shares. Following adoption of the Plan by the Board,
the Board may, in accordance with the provisions of the Plan, grant Options to
purchase Shares, subject to approval of the Plan in accordance with Section 9g
by the shareholder.

          b. Option Price. The price per Share at which each Option granted
under the Plan may be exercised ("Option Price") shall be determined by the
Board in accordance with the following:

             i. ISO's. The Option Price at which each ISO granted under the Plan
          may be exercised shall not be less than one hundred percent (100%) of
          the fair market value of a Share at the time such ISO is granted. In
          the case of a Optionee who owns stock representing more than ten
          percent (10%) of the total combined voting power of all classes of
          stock of the Company at the time an ISO is granted, the Option Price
          for such ISO shall not be less than one hundred ten percent (110%) of
          the fair market value of the Shares at the time the Option is granted.

               If the Company's common stock is not publicly traded the fair
          market value shall be an amount determined by the Board to be the
          price at which the Shares could reasonably be expected to be sold in
          an arm's length transaction giving due consideration to such factors
          as recent transactions involving Shares, the Company's actual and
          projected earnings, the value of the Company's assets,

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          any appraised valuation of the Shares, and such other factors as
          the Board deems pertinent to determining fair market value.

               If the Company's common stock is listed on a national securities
          exchange or the high and low prices are reported by NASDAQ at the time
          an ISO is granted, then the fair market value of a Share shall be the
          average of the highest and lowest selling price of a Share on such
          exchange or as reported by the NASDAQ on the date such ISO is granted
          or, if there were no sales on said date, then on the next prior
          business day on which there were sales. If the Company's stock is
          traded other than on a national securities exchange or the high and
          low selling prices are not reported on NASDAQ at the time an ISO is
          granted, then the fair market value of a Share shall be the average
          between the bid and asked price of a Share on the date the ISO is
          granted as reported on NASDAQ, if available.

               ii. NQSO's. The Option Price at which each NQSO granted under the
          Plan may be exercised shall not be less than one hundred per cent
          (100%) of the fair market value of a Share at the time the NQSO is
          granted.

               iii. Initial Option Price. The Board has determined that the fair
          market value of the Shares as of the date of the Plan is $5.00.

          c. Option Period. An Option granted under the Plan shall terminate,
and the right of the Optionee (or the Optionee's estate, personal
representative, or beneficiary) to purchase Shares upon exercise of the Option
shall expire on the date which is seven (7) years from the date of grant (the
"Termination Date").

          d. Exercise of Options.

               i. By an Optionee During Continuous Employment. No Option may be
          exercised, in whole or in part, for a period of one year after the
          date of the granting of such Option. If the Optionee's employment with
          the Company terminates for any reason during that year, the Option
          shall remain unexercisable and immediately terminate. An Optionee who
          has been continuously employed by the Company or a subsidiary or a
          combination thereof since the date of grant is eligible to exercise
          all Options which are then exercisable up to the Termination Date of
          such Options. The Board will decide in each case, subject to the
          limitations set forth in Section 422 of the Code applicable to ISO's,
          to what extent leaves of absence for government or military service,
          illness, temporary disability, or other reasons shall not for this
          purpose be deemed interruptions of continuous employment.

               ii. Vesting. Every Option shall be exercisable as of the first
          anniversary of its date of grant, to the extent of all or any part of
          fifteen percent (15%) of the optioned Shares; as of the second
          anniversary of its date of grant it shall be exercisable to the extent
          of all or any part of thirty percent (30%) of the optioned Shares,
          less the number of Shares previously acquired hereunder; as of the
          third anniversary of its date of grant it shall be exercisable to the
          extent of all

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          or any part of forty-five percent (45%) of the optioned Shares, less
          the number of Shares previously acquired hereunder; as of the fourth
          anniversary of its date of grant it shall be exercisable as to sixty
          percent (60%), less the number of Shares previously acquired
          hereunder; as of the fifth anniversary of its date of grant it shall
          be exercisable as to seventy-five percent (75%), less the number of
          Shares previously acquired hereunder; as of the sixth anniversary of
          its date of grant it shall be exercisable as to ninety (90%), less the
          number of Shares previously acquired hereunder; and during the
          remainder of the term of the Option it shall be exercisable, in whole
          or in part, for the full number of optioned Shares, less the number of
          Shares previously acquired hereunder.

               iii. Change of Control. In the event of a change of control of
          the Company prior to the Termination Date, the Option shall become
          immediately exercisable with respect to all Shares subject to the
          Option and shall remain fully exercisable for a period of ninety (90)
          days. If the Option has not been exercised within such ninety (90) day
          period, the Option shall terminate. For purposes of this section, a
          "change of control" shall mean the sale of substantially all the
          assets of the Company or of the subsidiary by which Optionee is
          employed; a sale by the Company of all of the outstanding shares of
          capital stock of the subsidiary by which Optionee is employed; or a
          sale of more than fifty percent (50%) of the Company's outstanding
          shares of capital stock to any person other than an affiliate of Scope
          Industries.

               iv. Termination of Employment. Every Option shall expire on the
          earlier to occur of (A) the Termination Date set forth in the Option,
          or (B) thirty (30) days after the cessation of the Optionee's
          employment with the Company or any subsidiary under any circumstances
          (except for a transfer of employment between Company and a
          subsidiary), unless such cessation was occasioned by death or
          disability within the meaning of Section 22(b)(3) of the Code ("total
          disability") of the Optionee; and, if exercised after such cessation
          of employment, may be exercised only in respect of the number of
          Shares which the Optionee could have acquired under the Option by the
          exercise thereof immediately prior to such cessation of employment. In
          the event of (1) the cessation of employment by reason of death or
          total disability of an Optionee or (2) the death of an Optionee within
          ninety (90) days following the cessation of his or her employment, the
          Option theretofore granted may be exercised within one year after the
          date of cessation of employment by reason of total disability or
          within one year after the date of death by the Optionee's estate or by
          the person or persons to whom the Optionee's rights under the Option
          shall pass by will or the laws of descent and distribution or by the
          custodian or guardian of the estate ("Optionee's representative"), but
          only in respect of the number of Shares which the Optionee could have
          acquired under the Option by the exercise thereof immediately prior to
          such cessation of employment. Notwithstanding the foregoing, the
          Option may not be exercised after the Termination Date.

          e. Termination of Options. An Option granted under the Plan shall be
considered terminated in whole or in part, to the extent that, in accordance
with the provisions of the Plan, it can no longer be exercised for Shares
originally subject to the Option.

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          f. Persons Subject to Section 16 of the Exchange Act. Optionees who
are subject to Section 16 of the Securities Exchange Act of 1934, as amended
(the "Exchange Act") are hereby advised that, to rely on Rule 16b-3, the
Optionee may be required to hold any equity security of the Company acquired
upon exercise of an Option by such person for at least six months after the date
of grant of the Option.

     7. Manner of Exercise and Payment.

          a. Manner of Exercise. An Option granted pursuant to the Plan may be
exercised, subject to provisions relative to its termination, from time to time,
only by (i) written notice of intent to exercise the Option with respect to a
specified whole number of Shares; (ii) payment to the Company in a manner
permitted by Section 7b (contemporaneously with delivery of each such notice) of
the amount of the Option Price for the number of Shares with respect to which
the Option is then being exercised; and (iii) if the Company shall so require,
written representation, in form and substance satisfactory to the Company, that
the Shares received upon exercise of the Option are being acquired for
investment. Each such notice, payment and representation shall be delivered to
the Secretary of the Company or mailed by registered or certified mail,
addressed to the Secretary of the Company at the Company's executive offices at
California from time to time, until the total number of Shares then subject to
the Option has been purchased. No Shares shall be delivered pursuant to the
exercise of any Option until registered or qualified for delivery under those
securities laws and regulations as may be deemed by the Board to be applicable
thereto, or unless the Board determines that an exemption therefrom is
available.

          b. Form of Payment. Payment for Shares pursuant to exercise of an
Option shall be made in cash, by check, or by delivery of Shares having an
aggregate fair market value equal to the Option Price for the total number of
Shares with respect to which the Option is being exercised. If Shares previously
acquired by exercise of an Option granted under the Plan are used for payment,
such Shares shall be added back to the number of Shares available for grant
under the Plan in accordance with the provision of Section 5.

          c. Limitations on Exercise. In the case of Options intended to be
ISO's, the aggregate fair market value, determined as of the date of grant, of
the Shares as to which such Options are exercisable for the first time by a
Optionee shall be limited to $100,000 per calendar year.

     8. Right to Repurchase. Upon cessation of Optionee's employment, the
Company shall have the right, but not the obligation, to purchase from the
Optionee or the Optionee's representative, as applicable, any or all Shares
acquired upon exercise of all or part of the Option. The Company may exercise
such right upon written notice to the Optionee or the Optionee's representative,
as applicable, within one hundred twenty (120) days of the cessation of
employment and payment of an amount equal to the Option Price calculated in
accordance with Section 6b for the Options granted under this Plan immediately
prior to the termination of Optionee's employment, whether or not such Options
were granted to the Optionee, but not less than Optionee's Option Price, times
the number of Shares to be acquired by the Company. Thereafter, the Optionee or
the Optionee's representative, as applicable, shall promptly return the duly
endorsed stock certificates for cancellation.

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     9. Other Provisions.

          a. Adjustments.

               i. Adjustment of Shares. In the event that the Company's
          outstanding shares of common stock are changed into or exchanged for a
          different number or kind of shares of the Company or other securities
          of the Company or another corporation by reason of merger,
          consolidation, recapitalization, reclassification, stock split-up,
          stock dividend or combination of shares, issuance or exercise of
          warrants or rights, the Board shall make an appropriate and equitable
          adjustment in the number and kind of Shares subject to outstanding
          Options, or portions thereof then unexercised, and the number and/or
          kind of Shares subject to the Plan so that after such event the
          proportional number or type of Shares subject to the Plan and the
          Optionee's right to a proportionate interest in the Company shall be
          maintained as before the occurrence of such event. Such adjustment in
          an outstanding Option shall be made without change in the total price
          applicable to the Option or the unexercised portion of any Option
          (except for any change in the total price resulting from rounding-off
          Share quantities or prices) and with any necessary corresponding
          adjustment in Option Price per Share. In addition, the Board, shall
          provide for such adjustments to the Plan or any Option granted
          thereunder as it shall deem appropriate to prevent the reduction or
          enlargement of rights, including adjustments in the event of changes
          in the outstanding common stock by reason of mergers, consolidations,
          combinations, exchanges of shares, separations, reorganizations,
          liquidations, issuance or exercise of warrants or rights and the like
          in which the Company is not the sole surviving successor to the assets
          or business of the Company. In the event of any offer to holders of
          common stock generally relating to the acquisition of their shares,
          the Board shall make such adjustments as it deems equitable in respect
          of outstanding Options. Any adjustments made by the Board shall be
          final and binding upon all Optionees, the Company and all other
          interested persons.

               ii. Modification of ISO's. Notwithstanding the foregoing, any
          adjustments made with respect to ISO's shall be made only after the
          Board, after consulting with counsel for the Company, determines
          whether such adjustments would constitute a "modification" of such
          ISO's (as that term is defined in Section 424 of the Code) or would
          cause any adverse tax consequences for the holders of such ISO's. If
          the Board determines that such adjustments made with respect to ISO's
          would constitute a modification of such ISO's, it may refrain from
          making such adjustments.

          b. Non-Transferability. No Option granted under the Plan shall be
transferable other than by will or the laws of descent and distribution. Any
attempt to transfer, assign, pledge, hypothecate or otherwise dispose of, or to
subject to execution, attachment or similar process, any Option other than as
permitted in the preceding sentence shall give no right to the purported
transferee. An Option may be exercised only by the Optionee, except as provided
in Section 6.

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          c. Compliance with Law and Approval of Regulatory Bodies. No Option
shall be exercisable and no Shares shall be delivered under the Plan except in
compliance with all applicable federal and state laws and regulations including,
without limitation, compliance with the rules of all domestic stock exchanges on
which the Company's shares may be listed. Any certificate issued to evidence
Shares for which an Option is exercised shall bear such legends and statements
as the Board deems advisable in order to assure compliance with federal and
state laws and regulations. No Option shall be exercisable and no Shares shall
be delivered under the Plan until the Company has obtained consent or approval
from such regulatory bodies, federal or state, having jurisdiction over such
matters as the Board may deem advisable.

          d. No Right to Employment. Neither the adoption of the Plan nor its
operation, nor any document describing or referring to the Plan, or any part
thereof, shall confer upon any participant under the Plan any right to continue
in the employ of the Company or a subsidiary or shall in any way affect the
right and power of the Company or a subsidiary to terminate the employment of
any participant under the Plan at any time with or without assigning a reason
therefor.

          e. Tax Withholding. The Board shall have the right to deduct from the
delivery of Shares under the Plan pursuant to the exercise of an Option, any
federal, state or local taxes of any kind required by law to be withheld with
respect to such exercise or to take such other action as may be necessary in the
opinion of the Board to satisfy all obligation for the payment of such taxes. If
Shares which would otherwise be delivered are used to satisfy tax withholding,
such Shares shall be valued based on the fair market value as of the date the
tax withholding is required to be made.

          f. Amendment and Termination. The Board may at any time suspend, amend
or terminate the Plan, and, without limiting the foregoing, the Board shall have
the express authority to amend the Plan from time to time with or, subject to
the requirements of the following paragraph, without approval by the
shareholders, in the manner and to the extent that the Board believes is
necessary or appropriate in order to cause the Plan to conform to provisions of
Rule 16b-3 under the Exchange Act and any other rules under Section 16 of the
Exchange Act, as any of such rules may be amended, supplemented or superseded
from time to time. Except for adjustments made in accordance with Section 9a,
the Board may not alter or impair any Option previously granted under the Plan.
No Option may be granted during any suspension of the Plan or after termination
thereof.

          In addition to Board approval of an amendment, if the amendment would:
(i) materially increase the benefits accruing to participants; (ii) increase the
number of Shares deliverable under the Plan (other than in accordance with the
provisions of Section 9a; or (iii) materially modify the requirements as to
eligibility for participation in the Plan, then such amendment shall be approved
by the holders of a majority of the Company's outstanding capital stock
represented and entitled to vote at a meeting held for the purpose of approving
such amendment to the extent required by Rule 16b-3 of the Exchange Act.

          g. Effective Date of the Plan. The Plan shall become effective upon
its adoption by the Board, subject to approval of the Plan by written consent of
the holder of the outstanding shares of common stock of the Company. Options may
be granted under the Plan

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prior to approval of the Plan by the shareholder, but no Option may be exercised
until after the Plan has been so approved by the shareholders.

          h. Duration of the Plan. Unless previously terminated by the Board,
the Plan shall terminate at the close of business on June 30, 2009, and no
Option shall be granted under it thereafter, but such termination shall not
affect any Option theretofore granted.

          i. Use of Proceeds. The proceeds received by the Company from the
sales of Shares under the Plan shall be used for general corporate purposes.

          j. Use of Certain Terms. The term "subsidiary" shall have the meaning
ascribed to it in Section 424 of the Code and unless the context otherwise
required, the other terms defined in Sections 421, 422 and 424, inclusive, of
the Code and regulations and revenue rulings applicable thereto, shall have the
meanings attributed to them therein.

          k. Governing Law. The law of the State of California will govern all
matters relating to the Plan except to the extent it is superseded by the laws
of the United States.

                                       8<PAGE>

                                                                   EXHIBIT 10.15
                         STANDARD INDUSTRIAL LEASE - NET

                   AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATIoN
                                     [LOGO]

1.      Parties. This Lease, dated, for reference purposes only, December 22,
                                                                 -----------
1988, is made by and between Monte D. Wood and James D. Childers (herein called
  --                         -----------------------------------
"Lessor") and Wood Alliance S.P., Inc. dba Wood Associates (herein called
              --------------------------------------------
"Lessee").

2.      Premises. Lessor hereby leases to Lessee and Lessee leases from Lessor
for the term, at the rental, and upon all of the conditions set forth herein,
that certain real property situated in the County of Santa Clara State of
                                                     -----------
California commonly known as 3071-3077 Corvin Drive. Santa Clara and described
----------                   -----------------------------------
as _____________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
Said real property including the land and all improvements therein, is herein
called "the Premises".

3.      Term.

        3.1 Term. The term of this Lease shall be for 25 Years commencing on
                                                      --------
December 30, 1988 and ending on December 31, 2013 unless sooner terminated
-----------------               -----------------
pursuant to any provision hereof.

        3.2 Delay in Possession. Notwithstanding said commencement date, if for
any reason Lessor cannot deliver possession of the Premises to Lessee on said
date, Lessor shall not be subject to any liability therefor, nor shall such
failure affect the validity of this Lease or the obligations of Lessee hereunder
or extend the term hereof, but in such case, Lessee shall not be obligated to
pay rent until possession of the Premises is tendered to Lessee; provided,
however, that if Lessor shall not have delivered possession of the Premises
within sixty (60) days from said commencement date. Lessee may, at Lessee's
option, by notice in writing to Lessor within ten (10) days thereafter, cancel
this Lease, in which event the parties shall be discharged from all obligations
hereunder; provided further, however, that if such written notice of Lessee is
not received by Lessor within said ten (10) day period, Lessee's right to cancel
this Lease hereunder shall terminate and be of no further force or effect.

        3.3 Early Possession. If Lessee occupies the Premises prior to said
commencement date, such occupancy shall be subject to all provisions hereof,
such occupancy shall not advance the termination date, and Lessee shall pay rent
for such period at the initial monthly rates set forth below.

4.      Rent. Lessee shall pay to Lessor as rent for the Premises, monthly
payments of $ $11,000.00, in advance, on the first day of each month of the
              ----------                     -----
term hereof. Lessee shall pay Lessor upon the execution hereof $ $11,000.00 as
                                                                 ----------
rent for the first month.
         -----------------------------------------------------------------------
________________________________________________________________________________
________________________________________________________________________________
Rent for any period during the term hereof which is for less than. one month
shall be a pro rata portion of the monthly installment. Rent shall be payable in
lawful money of the United States to Lessor at the address stated herein or to
such other persons or at such other places as Lessor may designate in writing.

5.      Security Deposit. Lessee shall deposit with Lessor upon execution hereof
$ N/A as security for Lessee's faithful performance of Lessee's obligations
 -----
hereunder. If Lessee fails to pay rent or other charges due hereunder, or
otherwise defaults with respect to any provision of this Lease, Lessor may use,
apply or retain all or any portion of said deposit for the payment of any rent
or other charge in default or for the payment of any other sum to which Lessor
may become obligated by reason of Lessees default, or to compensate Lessor for
any loss or damage which Lessor may suffer thereby. If Lessor so uses or applies
all or any portion of said deposit, Lessee shall within ten (10) days after
written demand therefor deposit cash with Lessor in an amount sufficient to
restore said deposit to the full amount hereinabove stated and Lessee's failure
to do so shall be a material breach of this Lease. If the monthly rent shall,
from time to time, increase during the term of this Lease, Lessee shall
thereupon deposit with Lessor additional security deposit so that the amount of
security deposit held by Lessor shall at all times bear the same proportion to
current rent as the original security deposit bears to the original monthly rent
set forth in paragraph 4 hereof. Lessor shall not be required to keep said
deposit separate from its general accounts. If Lessee performs all of Lessee's
obligations hereunder, said deposit, or so much thereof as has not theretofore
been applied by Lessor, shall be returned, without payment of interest or other
increment for its use, to Lessee (or, at Lessor's option, to the last assignee,
if any, of Lessee's interest hereunder) at the expiration of the term hereof,
and after Lessee has vacated the Premises. No trust relationship is created
herein between Lessor and Lessee with respect to said Security Deposit.

6.      Use.

        6.1   Use. The Premises shall be used and occupied only for office and
                                                                    ----------
administration and all related activities.
--------------------------------------------------------------------------------
or any other use which is reasonably comparable and for no other purpose.

        6.2   Compliance with Law.

              (a) Lessor warrants to Lessee that the Premises. in its state
existing on the date that the Lease term commences, but without regard to the
use for which Lessee will use the Premises, does not violate any covenants or
restrictions of record, or any applicable building code, regulation or ordinance
in effect on such Lease term commencement date. In the event it is determined
that this warranty has been violated, then it shall be the obligation of the
Lessor, after written notice from Lessee, to promptly, at Lessor's sole cost and
expense, rectify any such violation. In the event Lessee does not give to Lessor
written notice of the violation of this warranty within six months from the date
that the Lease term commences, the correction of same shall be the obligation of
the Lessee at Lessee's sole cost. The warranty contained in this paragraph
6.2(a) shall be of no force or effect if, prior to the date of this Lease,
Lessee was the owner or occupant of the Premises, and, in such event, Lessee
shall correct any such violation at Lessee's sole cost.

              (b) Except as provided in paragraph 6.2(a), Lessee shall, at
Lessee's expense, comply promptly with all applicable statutes, ordinances,
rules, regulations, orders, covenants and restrictions of record, and
requirements in effect during the term or any part of the term hereof,
regulating the use by Lessee of the Premises. Lessee shall not use nor permit
the use of the Premises in any manner that will tend to create waste or a
nuisance or, if there shall be more than one tenant in the building containing
the Premises, shall tend to disturb such other tenants.

        6.3   Condition of Premises.

              (a) Lessor shall deliver the Premises to Lessee clean and free of
debris on Lease commencement date (unless Lessee is already in possession) and
Lessor further warrants to Lessee that the plumbing, lighting, air conditioning,
heating, and loading doors in the Premises shall be in good operating condition
on the Lease commencement date. In the event that it is determined that this
warranty has been violated, then it shall be the obligation of Lessor, after
receipt of written notice from Lessee setting forth with specificity the nature
of the violation, to promptly, at Lessor's sole cost, rectify such violation.
Lessee's failure to give such written notice to Lessor within thirty (30) days
after the Lease commencement date shall cause the conclusive presumption that
Lessor has complied with all of Lessor's obligations hereunder. The warranty
contained in this paragraph 6.3(a) shall be of no force or effect if prior to
the date of this Lease, Lessee was the owner or occupant of the Premises.

              (b) Except as otherwise provided in this Lease, Lessee hereby
accepts the Premises in their condition existing as of the Lease commencement
date or the date that Lessee takes possession of the Premises, whichever is
earlier, subject to all applicable zoning, municipal, county and state laws,
ordinances and regulations governing and regulating the use of the Premises, and
any covenants or restrictions of record, and accepts this Lease subject thereto
and to all matters disclosed thereby and by any exhibits attached hereto. Lessee
acknowledges that neither Lessor nor Lessor's agent has made any representation
or warranty as to the present or future suitability of the Premises for the
conduct of Lessee's business.

7.      Maintenance, Repairs and Alterations.

        7.1 Lessee's Obligations. Lessee shall keep in good order, condition and
repair the Premises and every part thereof, structural and nonstructural,
(whether or not such portion of the Premises requiring repair, or the means of
repairing the same are reasonably or readily accessible to Lessee, and whether
or not the need for such repairs occurs as a result of Lessee's use, any prior
use, the elements or the age of such portion of the Premises) including, without
limiting the generality of the foregoing, all plumbing, heating, air
conditioning (Lessee shall procure and maintain, at Lessee's expense, an air
conditioning system maintenance contract) ventilating, electrical, lighting
facilities and equipment within the Premises, fixtures, walls (interior),
foundations, ceilings, roofs (interior and exterior), floors, windows, doors,
plate glass and skylights located within the Premises, and all landscaping,
driveways, parking lots, fences and signs located on the Premises and sidewalks
and parkways adjacent to the Premises.

        7.2 Surrender. On the last day of the term hereof, or on any sooner
termination, Lessee shall surrender the Premises to Lessor in the same condition
as when received, ordinary wear and tear excepted, clean and free of debris.
Lessee shall repair any damage to the Premises occasioned

<PAGE>

by the installation or removal of Lessee's trade fixtures, furnishings and
equipment. Notwithstanding anything to the contrary otherwise stated in this
Lease, Lessee shall leave the air lines, power panels, electrical distribution
systems, lighting fixtures, space heaters, air conditioning, plumbing and
fencing on the premises in good operating condition.

        7.3 Lessor's Rights. If Lessee tails to perform Lessee's obligations
under this Paragraph 7, or under any other paragraph of this Lease, Lessor may
at its option (but shall not be required to) enter upon the Premises after ten
(10) days' prior written notice to Lessee (except in the case of an emergency,
in which case no notice shall be required), perform such obligations on Lessees
behalf and put the same in good order, condition and repair, and the cost
thereof together with interest thereon at the maximum rate then allowable by law
shall become due and payable as additional rental to Lessor together with
Lessee's next rental installment.

        7.4 Lessor's Obligations. Except for the obligations of Lessor under
Paragraph 6.2(a) and 6.3(a) (relating to Lessor's warranty), Paragraph 9
(relating to destruction of the Premises) and under Paragraph 14 (relating to
condemnation of the Premises), it is intended by the parties hereto that Lessor
have no obligation, in any manner whatsoever, to repair and maintain the
Premises nor the building located thereon nor the equipment therein, whether
structural or non structural, all of which obligations are intended to be that
of the Lessee under Paragraph 7.1 hereof. Lessee expressly waives the benefit of
any statute now or hereinafter in effect which would otherwise afford Lessee the
right to make repairs at Lessor's expense or to terminate this Lease because of
Lessor's failure to keep the premises in good order, condition and repair.

        7.5 Alterations and Additions.

            (a) Lessee shall not, without Lessor's prior written consent make
any alterations, improvements, additions, or Utility Installations in, on or
about the Premises, except for nonstructural alterations not exceeding $2,500 in
cumulative costs during the term of this Lease. In any event, whether or not in
excess of $2,500 in cumulative cost, Lessee shall make no change or alteration
to the exterior of the Premises nor the exterior of the building(s) on the
Premises without Lessor's prior written consent. As used in this Paragraph 7.5
the term "Utility Installation" shall mean carpeting, window coverings, air
lines, power panels, electrical distribution systems, lighting fixtures, space
heaters, air conditioning, plumbing and fencing. Lessor may require that Lessee
remove any or all of said alterations, improvements, additions or Utility
Installations at the expiration of the term, and restore the Premises to their
prior condition. Lessor may require Lessee to provide Lessor, at Lessee's sole
cost and expense, a lien and completion bond in an amount equal to one and
one-half times the estimated cost of such improvements, to insure Lessor against
any liability for mechanic's and materialmen's liens and to insure completion of
the work. Should Lessee make any alterations, improvements, additions or Utility
Installations without the prior approval of Lessor, Lessor may require that
Lessee remove any or all of the same.

            (b) Any alterations, improvements, additions or Utility
Installations in, or about the Premises that Lessee shall desire to make and
which requires the consent of the Lessor shall be presented to Lessor in written
form, with proposed detailed plans. If Lessor shall give its consent. the
consent shall be deemed conditioned upon Lessee acquiring a permit to do so from
appropriate governmental agencies. the furnishing of a copy thereof to Lessor
prior to the commencement of the work and the compliance by Lessee of all
conditions of said permit in a prompt and expeditious manner.

            (c) Lessee shall pay, when due, all claims for labor or materials
furnished or alleged to have been furnished to or for Lessee at or for use in
the Premises, which claims are or may be secured by any mechanics' or
materialmen's lien against the Premises or any interest therein. Lessee shall
give Lessor not less than ten (10) days' notice prior to the commencement of any
work in the Premises, and Lessor shall have the right to post notices of
non-responsibility in or on the Premises as provided by law. If Lessee shall, in
good faith, contest the validity of any such lien, claim or demand, then Lessee
shall, at its sole expense defend itself and Lessor against the same and shall
pay and satisfy any such adverse judgment that may be rendered thereon before
the enforcement thereof against the Lessor or the Premises, upon the condition
that if Lessor shall require, Lessee shall furnish to Lessor a surety bond
satisfactory to Lessor in an amount equal to such contested lien claim or demand
indemnifying Lessor against liability for the same and holding the Premises free
from the effect of such lien or claim. In addition, Lessor may require Lessee to
pay Lessor's attorneys fees and costs in participating in such action if Lessor
shall decide it is to its best interest to do so.

            (d) Unless Lessor requires their removal, as set forth in Paragraph
7.5(a), all alterations, improvements, additions and Utility Installations
(whether or not such Utility Installations constitute trade fixtures of Lessee),
which may be made on the Premises, shall become the property of Lessor and
remain upon and be surrendered with the Premises at the expiration of the term.
Notwithstanding the provisions of this Paragraph 7.5(d), Lessee's machinery and
equipment, other than that which is affixed to the Premises so that it cannot be
removed without material damage to the Premises, shall remain the property of
Lessee and may be removed by Lessee subject to the provisions of Paragraph 7.2.

8.      Insurance Indemnity.

        8.1 Insuring Party. As used in this Paragraph 8, the term "insuring
party" shall mean the party who has the obligation to obtain the Property
Insurance required hereunder. The insuring party shall be designated in
Paragraph 46 hereof. In the event Lessor is the insuring party, Lessor shall
also maintain the liability insurance described in paragraph 8.2 hereof, in
addition to, and not in lieu of, the insurance required to be maintained by
Lessee under said paragraph 8.2, but Lessor shall not be required to name Lessee
as an additional insured on such policy. Whether the insuring party is the
Lessor or the Lessee, Lessee shall, as additional rent for the Premises, pay the
cost of all insurance required hereunder, except for that portion of the cost
attributable to Lessor's liability insurance coverage in excess of $1,000,000
per occurrence. If Lessor is the insuring party Lessee shall, within ten (10)
days following demand by Lessor, reimburse Lessor for the cost of the insurance
so obtained.

        8.2 Liability Insurance. Lessee shall, at Lessee's expense obtain and
keep in force during the term of this Lease a policy of Combined Single Limit,
Bodily Injury and Property Damage insurance insuring Lessor and Lessee against
any liability arising out of the ownership, use, occupancy or maintenance of the
Premises and all areas appurtenant thereto. Such insurance shall be a combined
single limit policy in an amount not less than $500.000 per occurrence. The
policy shall insure performance by Lessee of the indemnity provisions of this
Paragraph 8. The limits of said insurance shall not, however, limit the
liability of Lessee hereunder.

        8.3 Property Insurance.

            (a) The insuring party shall obtain and keep in force during the
term of this Lease a policy or policies of insurance covering loss or damage to
the Premises, in the amount of the full replacement value thereof, as the same
may exist from time to time, which replacement value is now $ TBD but in no
event less than the total amount required by lenders having liens on the
Premises, against all perils included within the classification of fire,
extended coverage, vandalism, malicious mischief, flood (in the event same is
required by a lender having a lien on the Premises), and special extended perils
("all risk" as such term is used in the insurance industry). Said insurance
shall provide for payment of loss thereunder to Lessor or to the holders of
mortgages or deeds of trust on the Premises. The insuring party shall, in
addition, obtain and keep in force during the term of this Lease a policy of
rental value insurance covering a period of one year, with loss payable to
Lessor, which insurance shall also cover all real estate taxes and insurance
costs for said period. A stipulated value or agreed amount endorsement deleting
the coinsurance provision of the policy shall be procured with said insurance as
well as an automatic increase in insurance endorsement causing the increase in
annual property insurance coverage by 2% per quarter. If the insuring party
shall fail to procure and maintain said insurance the other party may, but
steal; not be required to, procure and maintain the same, but at the expense of
Lessee. If such insurance coverage has a deductible clause, the deductible
amount shall not exceed $1,000 per occurrence, and Lessee shall be liable for
such deductible amount.

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

            (c) If the Lessor is the insuring party the Lessor will not insure
Lessee's fixtures, equipment or tenant improvements unless the tenant
improvements have become a part of the Premises under paragraph 7, hereof. But
if Lessee is the insuring party the Lessee shall insure its fixtures, equipment
and tenant improvements.

        8.4 Insurance Policies. Insurance required hereunder shall be in
companies holding a "General Policyholders Rating" of at least B plus, or such
other rating as may be required by a lender having a lien on the Premises, as
set forth in the most current issue of "Best's Insurance Guide". The insuring
party shall deliver to the other party copies of policies of such insurance or
certificates evidencing the existence and amounts of such insurance with loss
payable clauses as required by this paragraph 8. No such policy shall be
cancellable or subject to reduction of coverage or other modification except
after thirty (30) days prior written notice to Lessor. If Lessee is the insuring
party Lessee shall, at least thirty (30) days prior to the expiration of such
policies, furnish Lessor with renewals or "binders" thereof, or Lessor may order
such insurance and charge the cost thereof to Lessee, which amount shall be
payable by Lessee upon demand. Lessee shall not do or permit to be done anything
which shall invalidate the insurance policies referred to in Paragraph 8.3. If
Lessee does or Permits to be done anything which snail increase the cost of the
insurance policies referred to in Paragraph 8.3 then Lessee shall forthwith upon
Lessor's demand reimburse Lessor for any additional premiums attributable to any
act or omission or operation of Lessee causing such increase in the cost of
insurance. If Lessor is the insuring party, and if the insurance policies
maintained hereunder cover other improvements in addition to the Premises,
Lessor shall deliver to Lessee a written statement setting forth the amount of
any such insurance cost increase and showing in reasonable detail the manner in
which it has been computed.

        8.5 Waiver of Subrogation. Lessee and Lessor each hereby release and
relieve the other, and waive their entire right of recovery against the other
for loss or damage arising out of or incident to the perils insured against
under paragraph 8.3, which perils occur in, on or about the Premises, whether
due to the negligence of Lessor or Lessee or their agents, employees,
contractors and/or invitees. Lessee and Lessor shall, upon obtaining the
policies of insurance required hereunder, give notice to the insurance carrier
or carriers that the foregoing mutual waiver of subrogation is contained in this
Lease.

        8.6 Indemnity. Lessee shall indemnify and hold harmless Lessor from and
against any and all claims arising from Lessee's use of the Premises, or from
the conduct of Lessee's business or from any activity, work or things done,
permitted or suffered by Lessee in or about the Premises or elsewhere and shall
further indemnify and hold harmless Lessor from and against any and all claims
arising from any breach or default in the performance of any obligation on
Lessee's part to be performed under the terms of this Lease, or arising from any
negligence of the Lessee, or any of Lessee's agents, contractors, or employees,
and from and against all costs, attorney's fees, expenses and liabilities
incurred in the defense of any such claim or any action or proceeding brought
thereon; and in case any action or proceeding be brought against Lessor by
reason of any such claim, Lessee upon notice from Lessor shall defend the same
at Lessee's expense by counsel satisfactory to Lessor. Lessee, as a material
part of the consideration to Lessor, hereby assumes all risk of damage to
property or injury to persons, in, upon or about the Premises arising from any
cause and Lessee hereby waives all claims, in respect thereof against Lessor.

        8.7 Exemption of Lessor from Liability. Lessee hereby agrees that Lessor
shall not be liable for injury to Lessee's business or any loss of income
therefrom or for damage to the goods, wares, merchandise or other property of
Lessee. Lessee's employees, invitees, customers, or any other person in or about
the Premises, nor shall Lessor be liable for injury to the person of Lessee,
Lessee's employees, agents or contractors, whether such damage or injury is
caused by or results from fire, steam, electricity, gas, water or rain, or from
the breakage, leakage, obstruction or other defects of pipes, sprinklers, wires,
appliances, plumbing, air conditioning or lighting fixtures, or from any other
cause, whether the said damage or injury results from conditions arising upon
the Premises or upon other portions of the building of which the Premises are a
part, or from other sources or places and regardless of whether the cause of
such damage or injury or the means of repairing the same is inaccessible to
Lessee. Lessor shall not be liable for any damages arising from any act or
neglect of any other tenant, if any, of the building in which the Premises are
located.

                                      -2-

<PAGE>

9.       Damage or Destruction.

         9.1  Definitions.

              (a) "Premises Partial Damage" shall herein mean damage or
destruction to the Premises to the extent that the cost of repair is less than
50% of the then replacement cost of the Premises. "Premises Building Partial
Damage" shall herein mean damage or destruction to the building of which the
Premises are a part to the extent that the cost of repair is less than 50% of
the then replacement cost of such building as a whole.

              (b) "Premises Total Destruction" shall herein mean damage or
destruction to the Premises to the extent that the cost of repair is 50% or more
of the then replacement cost of the Premises. "Premises Building Total
Destruction" shall herein mean damage or destruction to the building of which
the Premises are a part to the extent that the cost of repair is 50% or more of
the then replacement cost of such building as a whole.

              (c) "Insured Loss" shall herein mean damage or destruction which
was caused by an event required to be covered by the insurance described in
paragraph 8.

         9.2  Partial Damage -- Insured Loss. Subject to the provisions of
paragraphs 9.4, 9.5 and 9.6, if at any time during the term of this Lease there
is damage which is an Insured Loss and which falls into the classification of
Premises Partial Damage or Premises Building Partial Damage, then Lessor shall,
at Lessor's expense, repair such damage, but not Lessees fixtures, equipment or
tenant improvements unless the same have become a part of the Premises pursuant
to Paragraph 7.5 hereof as soon as reasonably possible and this Lease shall
continue in full force and effect. Notwithstanding the above, if the Lessee is
the insuring party, and if the insurance proceeds received by Lessor are not
sufficient to effect such repair, Lessor shall give notice to Lessee of the
amount required in addition to the insurance proceeds to effect such repair.
Lessee shall contribute the required amount to Lessor within ten days after
Lessee has received notice from Lessor of the shortage in the insurance. When
Lessee shall contribute such amount to Lessor, Lessor shall make such repairs as
soon as reasonably possible and this Lease shall continue in full force and
effect. Lessee shall in no event have any right to reimbursement for any such
amounts so contributed.

         9.3  Partial Damage -- Uninsured Loss. Subject to the provisions of
Paragraphs 9.4, 9.5 and 9.6, if at any time during the term of this Lease there
is damage which is not an Insured Loss and which falls within the classification
of Premises Partial Damage or Premises Building Partial Damage, unless caused by
a negligent or willful act of Lessee (in which event Lessee shall make the
repairs at Lessee's expense), Lessor may at Lessor's option either (i) repair
such damage as soon as reasonably possible at Lessor's expense, in which event
this Lease shall continue in full force and effect; or (ii) give written notice
to Lessee within thirty (30) days after the date of the occurrence of such
damage of Lessor's intention to cancel and terminate this Lease, as of the date
of the occurrence of such damage. In the event Lessor elects to give such notice
of Lessors intention to cancel and terminate this Lease, Lessee shall have the
right within ten (10) days after the receipt of such notice to give written
notice to Lessor of Lessee's intention to repair such damage at Lessee's
expense, without reimbursement from Lessor, in which event this Lease shall
continue in full force and effect, and Lessee shall proceed to make such repairs
as soon as reasonably possible. If Lessee does not give such notice within such
10-day period this Lease shall be cancelled and terminated as of the date of the
occurrence of such damage.

         9.4  Total Destruction. If at any time during the term of this Lease
there is damage, whether or not an Insured Loss, (including destruction required
by any authorized public authority), which falls into the classification of
Premises Total Destruction or Premises Building Total Destruction, this Lease
shall automatically terminate as of the date of such total destruction.

         9.5  Damage Near End of Term.

              (a) If at any time during the last six months of the term of this
Lease there is damage, whether or not an Insured Loss, which falls within the
classification of Premises Partial Damage, Lessor may at Lessor's option cancel
and terminate this Lease as of the date of occurrence of such damage by giving
written notice to Lessee of Lessor's election to do so within 30 days after the
date of occurrence of such damage.

              (b) Notwithstanding paragraph 9.5(a). in the event that Lessee has
an option to extend or renew this Lease, and the time within which said option
may be exercised has not yet expired, Lessee shall exercise such option, if it
is to be exercised at all, no later than 20 days after the occurrence of an
insured Loss falling within the classification of Premises Partial Damage during
the last six months of the term of this Lease. If Lessee duly exercises such
option during said 20 day period, Lessor shall, at Lessor's expense, repair such
damage as soon as reasonably possible and this Lease shall continue in full
force and effect. If Lessee fails to exercise such option during said 20 day
period, then Lessor may at Lessor's option terminate and cancel this Lease as of
the expiration of said 20 day period by giving written notice to Lessee of
Lessor's election to do so within 10 days after the expiration of said 20 day
period, notwithstanding any term or provision in the grant of option to the
contrary.

         9.6  Abatement of Rent; Lessee's Remedies.

              (a) In the event of damage described in paragraphs 9.2 or 9.3, and
Lessor or Lessee repairs or restores the Premises pursuant to the provisions of
this Paragraph 9, the rent payable hereunder for the period during which such
damage, repair or restoration continues shall be abated in proportion to the
degree to which Lessee's use of the Premises is impaired. Except for abatement
of rent, if any, Lessee shall have no claim against Lessor for any damage
suffered by reason of any such damage, destruction, repair or restoration.

              (b) If Lessor shall be obligated to repair or restore the Premises
under the provisions of this Paragraph 9 and shall not commence such repair or
restoration within 90 days after such obligations shall accure, Lessee may at
Lessee's option cancel and terminate this Lease by giving Lessor written notice
of Lessee's election to do so at any time prior to the commencement of such
repair or restoration. In such event this Lease shall terminate as of the date
of such notice.

         9.7  Termination -- Advance Payments. Upon termination of this Lease
pursuant to this Paragraph 9, an equitable adjustment shall be made concerning
advance rent and any advance payments made by Lessee to Lessor. Lessor shall, in
addition, return to Lessee so much of Lessee's security deposit as has not
theretofore been applied by Lessor.

         9.8  Waiver. Lessor and Lessee waive the provisions of any statutes
which relate to termination of leases when leased property is destroyed and
agree that such event shall be governed by the terms of this Lease.

10.      Real Property Taxes.

         10.1 Payment of Taxes. Lessee shall pay the real property tax, as
defined in paragraph 10.2, applicable to the Premises during the term of this
Lease. All such payments shall be made at least ten (10) days prior to the
delinquency date of such payment. Lessee shall promptly furnish Lessor with
satisfactory evidence that such taxes have been paid. If any such taxes paid by
Lessee shall cover any period of time prior to or after the expiration of the
term hereof, Lessee's share of such taxes shall be equitably prorated to cover
only the period of time within the tax fiscal year during which this Lease shall
be in effect, and Lessor shall reimburse Lessee to the extent required. If
Lessee shall fail to pay any such taxes, Lessor shall have the right to pay the
same, in which case Lessee shall repay such amount to Lessor with Lessee's next
rent installment together with interest at the maximum rate then allowable by
law.

         10.2 Definition of "Real Property Tax". As used herein, the term "real
property tax" shall include any form of real estate tax or assessment, general,
special, ordinary or extraordinary, and any license fee, commercial rental tax,
improvement bond or bonds, levy or tax (other than inheritance, personal income
or estate taxes) imposed on the Premises by any authority having the direct or
indirect power to tax, including any city, state or federal government, or any
school, agricultural, sanitary, fire, street, drainage or other improvement
district thereof, as against any legal or equitable interest of Lessor in the
Premises or in the real property of which the Premises are a part, as against
Lessor's right to rent or other income therefrom, and as against Lessor's
business of leasing the Premises. The term "real property tax" shall also
include any tax, fee, levy, assessment or charge (i) in substitution of,
partially or totally, any tax, fee, levy, assessment or charge hereinabove
included within the definition of "real property tax," or (ii) the nature of
which was hereinbefore included within the definition of "real property tax," or
(iii) which is imposed for a service or right not charged prior to June 1, 1978,
or, if previously charged, has been increased since June 1, 1978, or (iv) which
is imposed as a result of a transfer, either partial or total, of Lessor's
interest in the Premises or which is added to a tax or charge hereinbefore
included within the definition of real property tax by reason of such transfer,
or (v) which is imposed by reason of this transaction, any modifications or
changes hereto, or any transfers hereof.

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

         10.4 Personal Property Taxes.

              (a) Lessee shall pay prior to delinquency all taxes assessed
against and levied upon trade fixtures, furnishings, equipment and all other
personal property of Lessee contained in the Premises or elsewhere. When
possible, Lessee shall cause said trace fixtures, furnishings. equipment and all
other personal property to be assessed and billed separately from the real
property of Lessor.

              (b) If any of Lessee's said personal property shall be assessed
with Lessor's real property, Lessee shall pay Lessor the taxes attributable to
Lessee within 10 days after receipt of a written statement setting forth the
taxes applicable to Lessee's property.

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

12.      Assignment and Subletting.

         12.1 Lessor's Consent Required. Lessee shall not voluntarily or by
operation of law assign, transfer, mortgage, sublet, or otherwise transfer or
encumber all or any part of Lessee's interest in this Lease or in the Premises,
without Lessor's prior written consent, which Lessor shall not unreasonably
withhold. Lessor shall respond to Lessee's request for consent hereunder in a
timely manner and any attempted assignment, transfer, mortgage, encumbrance or
subletting without such consent shall be void, and shall constitute a breach of
this Lease.

         12.2 Lessee Affiliate. Notwithstanding the provisions of paragraph 12.1
hereof, Lessee may assign or sublet the Premises, or any portion thereof,
without Lessor's consent, to any corporation which controls, is controlled by or
is under common control with Lessee, or to any corporation resulting from the
merger or consolidation with Lessee, or to any person or entity which acquires
all the assets of Lessee as a going concern of the business that is being
conducted on the Premises, provided that said assignee assumes, in full, the
obligations of Lessee under this Lease. Any such assignment shall not, in any
way, affect or limit the liability of Lessee under the terms of this Lease even
if after such assignment or subletting the terms of this Lease are materially
changed or altered without the consent of Lessee, the consent of whom shall not
be necessary.

         12.3 No Release of Lessee. Regardless of Lessor's consent, no
subletting or assignment shall release Lessee of Lessee's obligation or alter
the primary liability of Lessee to pay the rent and to perform all other
obligations to be performed by Lessee hereunder. The acceptance of rent by
Lessor from any other person shall not be deemed to be a waiver by Lessor of any
provision hereof. Consent to one assignment or subletting shall not be deemed
consent to any subsequent assignment or subletting. In the event of default by
any assignee of Lessee or any successor of Lessee, in the performance of any of
the terms hereof, Lessor may proceed directly against Lessee without the
necessity of exhausting remedies against said assignee. lessor may consent to
subsequent assignments or subletting of this Lease or amendments or
modifications to this Lease with assignees

                                      -3-

<PAGE>

of Lessee without notifying Lessee, or any successor of Lessee, and without
obtaining its or their consent thereto and such action shall not relieve Lessee
of liability under this Lease.

         12.4 Attorney's Fees. In the event Lessee shall assign or sublet the
Premises or request the consent of Lessor to any assignment or subletting or if
Lessee shall request the consent of Lessor for any act Lessee proposes to do
then Lessee shall pay Lessor's reasonable attorneys fees incurred in connection
therewith, such attorneys fees not to exceed $350.00 for each such request.

13.      Defaults; Remedies.

         13.1 Defaults. The occurrence of any one or more of the following
events shall constitute a material default and breach of this Lease by Lessee:

         (a) The vacating or abandonment of the Premises by Lessee.

         (b) The failure by Lessee to make any payment of rent or any other
payment required to be made by Lessee hereunder as and when due, where such
failure shall continue for a period of three days after written notice thereof
from Lessor to Lessee. In the event that Lessor serves Lessee with a Notice to
Pay Rent or Quit pursuant to applicable Unlawful Detainer statutes such Notice
to Pay Rent or Quit shall also constitute the notice required by this
subparagraph.

         (c) The failure by Lessee to observe or perform any of the covenants,
conditions or provisions of this Lease to be observed or performed by Lessee,
other than described in paragraph (b) above, where such failure shall continue
for a period of 30 days after written notice thereof from Lessor to Lessee;
provided, however that if the nature of Lessee's default is such that more than
30 days are reasonably required for its cure, then Lessee shall not be deemed to
be in default if Lessee commenced such cure within said 30-day period and
thereafter diligently prosecutes such cure to completion.

         (d) (i) The making by Lessee of any general arrangement or assignment
for the benefit of creditors; (ii) Lessee becomes a "debtor" as defined in 11
U.S.C. (S)101 or any successor statute thereto (unless, in the case of petition
filed against Lessee, the same is dismissed within 60 days); (iii) the
appointment of a trustee or receiver to take possession of substantially all of
Lessee's assets located at the Premises or of Lessee's interest in this Lease,
where possession is not restored to Lessee within 30 days; or (iv) the
attachment, execution or other judicial seizure of substantially all of Lessee's
assets located at the Premises or of Lessee's interest in this Lease, where such
seizure is not discharged within 30 days. Provided, however, in the event that
any provision of this paragraph 13.1(d) is contrary to any applicable law, such
provision shall be of no force or effect.

         (e) The discovery by Lessor that any financial statement given to
Lessor by Lessee, any assignee of Lessee, any subtenant of Lessee, any successor
in interest of Lessee or any guarantor of Lessee's obligation hereunder, and any
of them, was materially false.

    13.2 Remedies. In the event of any such material default or breach by
Lessee, Lessor may at any time thereafter with or without notice or demand and
without limiting Lessor in the exercise of any right or remedy which Lessor may
nave by reason of such default or breach:

         (a) Terminate Lessees right to possession of the Premises by any lawful
means, in which case this Lease shall terminate and Lessee shall immediately
surrender possession of the Premises to Lessor. In such event Lessor shall be
entitled to recover from Lessee all damages incurred by Lessor by reason of
Lessees default including, but not limited to, the cost of recovering possession
of the Premises, expenses of reletting, including necessary renovation and
alteration of the Premises, reasonable attorney's fees, and any real estate
commission actually paid, the worth at the time of award by the court having
jurisdiction thereof of the amount by which the unpaid rent for the balance of
the term after the time of such award exceeds the amount of such rental loss for
the same period that Lessee proves could be reasonably avoided; that portion of
the leasing commission paid by Lessor pursuant to Paragraph 15 applicable to the
unexpired term of this Lease.

         (b) Maintain Lessee's right to possession in which case this Lease
shall continue in effect whether or not Lessee shall have abandoned the
Premises. In such event Lessor shall be entitled to enforce all of Lessor's
rights and remedies under this Lease, including the right to recover the rent as
it becomes due hereunder.

         (c) Pursue any other remedy now or hereafter available to Lessor under
the laws or judicial decisions of the state wherein the Premises are located.
Unpaid installments of rent and other unpaid monetary obligations of Lessee
under the terms of this Lease shall bear interest from the date due at the
maximum rate then allowable by law.

    13.3 Default by Lessor. Lessor shall not be in default unless Lessor fails
to perform obligations required of Lessor within a reasonable time, but in no
event later than thirty (30) days after written notice by Lessee to Lessor and
to the holder of any first mortgage or deed of trust covering the Premises whose
name and address shall have theretofore been furnished to Lessee in writing,
specifying wherein Lessor has failed to perform such obligation; provided,
however, that if the nature of Lessor's obligation is such that more than thirty
(30) days are required for performance then Lessor shall not be in default if
Lessor commences performance within such 30-day period and thereafter diligently
prosecutes the same to completion.

    13.4 Late Charges. Lessee hereby acknowledges that late payment by Lessee to
Lessor of rent and other sums due hereunder will cause Lessor to incur costs not
contemplated by this Lease, the exact amount of which will be extremely
difficult to ascertain. Such costs include, but are not limited to, processing
and accounting charges, and late charges which may be imposed on Lessor by the
terms of any mortgage or trust deed covering the Premises. Accordingly, if any
installment of rent or any other sum due from Lessee shall not be received by
Lessor or Lessor's designee within ten (10) days after such amount shall be due,
then, without any requirement for notice to Lessee, Lessee shall pay to Lessor a
late charge equal to 6% of such overdue amount. The parties hereby agree that
such late charge represents a fair and reasonable estimate of the costs Lessor
will incur by reason of late payment by Lessee. Acceptance of such late charge
by Lessor shall in no event constitute a waiver of Lessee's default with respect
to such overdue amount, nor prevent Lessor from exercising any of the other
rights and remedies granted hereunder. In the event that a late charge is
payable hereunder, whether or not collected, for three (3) consecutive
installments of rent, then rent shall automatically become due and payable
quarterly in advance, rather than monthly, notwithstanding paragraph 4 or any
other provision of this Lease to the contrary.

    13.5 Impounds. In the event that a late charge is payable hereunder, whether
or not collected, for three (3) installments of rent or any other monetary
obligation of Lessee under the terms of this Lease, Lessee shall pay to Lessor,
if Lessor shall so request in addition to any other payments required under this
Lease, a monthly advance installment, payable at the same time as the monthly
rent, as estimated by Lessor, for real property tax and insurance expenses on
the Premises which are payable by Lessee under the terms of this Lease. Such
fund shall be established to insure payment when due, before delinquency, of any
or all such, real property taxes and insurance premiums. If the amounts paid to
Lessor by Lessee under the provisions of this paragraph are insufficient to
discharge the obligations of Lessee to pay such real property taxes and
insurance premiums as the same become due. Lessee shall pay to Lessor, upon
Lessor's demand, such additional sums necessary to pay such obligations. All
moneys paid to Lessor under this paragraph may be intermingled with other moneys
of Lessor and shall not bear interest. In the event of a default in the
obligations of Lessee to perform under this Lease, then any balance remaining
from funds paid to Lessor under the provisions of this paragraph may, at the
option of Lessor, be applied to the payment of any monetary default of Lessee in
lieu of being applied to the payment; of real property tax and insurance
premiums.

14. Condemnation. If the Premises or any portion thereof are taken under the
power of eminent domain, or sold under the threat of the exercise of said power
(all of which are herein, called "condemnation"), this lease shall terminate as
to the part so taken as of the date the condemning authority takes title or
possession, whichever first occurs. If more than 10% of the floor area of the
building on the Premises, or more than 25% of the land area of the Premises
which is not occupied by any building, is taken by condemnation, Lessee, may, at
Lessee's option, to be exercised in writing only within ten (10) days after
Lessor shall have given Lessee written, notice of such taking (or in the absence
of such notice, within ten (10) days after the condemning authority shall have
taken possession; terminate this Lease as of the date the condemning authority
takes such possession. If Lessee does not terminate this Lease in accordance
with the foregoing, this Lease shall remain in full force and effect as to the
portion of the Premises remaining, except that the rent shall be reduced in the
proportion that the floor area of the building taken bears to the total floor
area of the building situated on the Premises. No reduction of rent shall occur
if the only area taken is that which does not have a building located thereon.
Any award for the taking of all or any part of the Premises under the power of
eminent domain or any payment made under threat of the exercise of such power
shall be the property of Lessor, whether such award shall be made as
compensation for diminution in value of the leasehold or for the taking of the
fee, or as severance damages; provided, however, that Lessee shall be entitled
to any award for loss of or damage to Lessee's trade fixtures and removable
personal property. In the event that this Lease is not terminated by reason of
such condemnation, Lessor shall to the extent of severance damages received by
Lessor in connection with such condemnation, repair any damage to the Premises
caused any such condemnation except to the extent that Lessee has been
reimbursed therefor by the condemning authority. Lessee shall pay any amount in
excess of such severance damages required to compete such repair.

15. Broker's Fee.

         (a) Upon execution of this Lease by both parties. Lessor shall pay to
N/A
--------------------------------------------------------------------------------
--------------------Licensed real estate broker(s), a fee as set forth in a
separate agreement between Lessor and said broker(s), or in the event there is
no separate agreement between Lessor and said broker(s), the sum of $ N/A , for
                                                                     -----
brokerage services rendered by said broker(s) to Lessor in this transaction.

         (b) Lessor further agrees that if Lessee exercises any Option as
defined in paragraph 39.1 of this Lease, which is granted to Lessee under this
Lease, or any subsequently granted option which is substantially similar to an
Option granted to Lessee under this Lease, or if Lessee acquires any rights to
the Premises or other premises described in this Lease which are substantially
similar to what Lessee would have acquired had an Option herein granted to
Lessee been exercised, of if Lessee remains in possession of the Premises after
the expiration of the term of this Lease after having failed to exercise an
Option, or if said broker(s) are the procuring cause of any other lease or sale
entered into between the parties pertaining to the Premises and/or any adjacent
property in which Lessor has an interest, then as to any of said transactions,
Lessor shall pay said broker(s) fee in accordance with the schedule of said
broker(s) in effect at the time of execution of this Lease.

         (c) Lessor agrees to pay said fee not only on behalf of Lessor but also
no behalf of any person, corporation, association, or other entity having an
ownership interest in said real property or any part hereof, when such fee is
due hereunder. Any transferee of Lessor's interest in this Lease, whether such
transfer is by agreement or by operation of law, shall be deemed to have assumed
Lessor's obligation under this Paragraph 15. Said broker shall be a third party
beneficially of the provisions of this Paragraph 15.

16. Estoppel Certificate.

         (a) Lessee shall at anytime upon not less than ten (10) days' prior
written notice from Lessor execute, acknowledge and deliver to Lessor a
statement in writing (i) certifying that this Lease is unmodified and in full
force and effect (or, if modified, stating the nature of such modification and
certifying that this Lease, as so modified, is in full force and effect) and the
date to which the rent and other charges are paid in advance, if any, and (ii)
acknowledging that there are not, to Lessee's knowledge, any uncured defaults on
the part of Lessor hereunder, or specifying such defaults if any are claimed.
Any such statement may be conclusively relied upon by any prospective purchaser
or encumbrancer of the Premises.

         (b) At Lessor's option, Lessee's failure to deliver such statement
within such time shall be a material breach of this Lease or shall be

                                      -4-

<PAGE>

conclusive upon Lessee (i) that this Lease is in full force and effect, without
modification except as maybe represented by Lessor; (ii) that there are no
uncured defaults in Lessor's performance; and (iii) that not more than one
month's rent has been paid in advance or such failure may be considered by
Lessor as a default by Lessee under this Lease.

         (c) If Lessor desires to finance, refinance, or sell the Premises, or
any part thereof, Lessee hereby agrees to deliver to any lender or purchaser
designated by Lessor such financial statements of Lessee as maybe reasonably
required by such lender or purchaser. Such statements shall include the past
three years' financial statements of Lessee. All such financial statements shall
be received by Lessor and such lender or purchaser in confidence and shall be
used only for the purposes herein set forth.

17. Lessor's Liability. The term "Lessor" as used herein shall mean only the
owner or owners at the time in question of the fee title or a lessee's interest
in a ground lease of the Premises, and except as expressly provided in Paragraph
15, in the event of any transfer of such title or interest, Lessor herein named
(and in case of any subsequent transfers then the Grantor) shall be relieved
from and after the date of such transfer of all liability as respects Lessor's
obligations thereafter to be performed, provided that any funds in the hands of
Lessor or the then grantor at the time of such transfer, in which Lessee has an
interest, shall be delivered to the grantee. The obligations contained in this
Lease to be performed by Lessor shall, subject as aforesaid, be binding on
Lessors successors and assigns, only during their respective periods of
ownership.

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

19. Interest on Past-due Obligations. Except as expressly herein provided, any
amount due to Lessor not paid when due shall bear interest at the maximum rate
then allowable by law from the date due. Payment of such interest shall not
excuse or cure any default by Lessee under this Lease, provided, however, that
interest small not be payable on late charges incurred by Lessee nor on any
amounts upon which late charges are paid by Lessee.

20. Time of Essence. Time is of the essence.

21. Additional Rent. Any monetary obligations of Lessee to Lessor under the
terms of this Lease shall be deemed to be rent.

22. Incorporation of Prior Agreements; Amendments. This Lease contains all
agreements of the parties with respect to any matter mentioned herein. No prior
agreement or understanding pertaining to any such matter shall be effective.
This Lease may be modified in writing only, signed by the parties in interest at
the time of the modification. Except as otherwise stated in this Lease, Lessee
hereby acknowledges that neither the real estate broker listed in Paragraph 15
hereof nor any cooperating broker on this transaction nor the Lessor or any
employees or agents of any of said persons has made any oral or written
warranties or representations to Lessee relative to the condition or use by
Lessee of said Premises and Lessee acknowledges that Lessee assumes all
responsibility regarding the Occupational Safety Health Act, the legal use and
adaptability of the Premises and the compliance thereof with all applicable laws
and regulations in effect during the term of this Lease except as otherwise
specifically stated in this Lease.

23. Notices. Any notice required or permitted to be given hereunder shall be in
writing and maybe given by personal delivery or by certified mail, and if given
personally or by mail, shall be deemed sufficiently given if addressed to Lessee
or to Lessor at the address noted below the signature of the respective parties,
as the case maybe. Either party may by notice to the other specify a different
address for notice purposes except that upon Lessee's taking possession of the
Premises, the Premises shall constitute Lessee's address for notice purposes. A
copy of all notices required or permitted to be given to Lessor hereunder shall
be concurrently transmitted to such party or parties at such addresses as Lessor
may from time to time hereafter designate by notice to Lessee.

24. Waivers. No waiver by Lessor or any provision hereof shall be deemed a
waiver of any other provision hereof or of any subsequent breach by Lessee of
the same or any other provision. Lessor's consent to, or approval of, any act
shall not be deemed to render unnecessary the obtaining of Lessor's consent to
or approval of any subsequent act by Lessee. The acceptance of rent hereunder by
Lessor shall not be a waiver of any preceding breach by Lessee of any provision
hereof, other than the failure of Lessee to pay the particular rent so accepted,
regardless of Lessor's knowledge of such preceding breach at the time of
acceptance of such rent.

25. Recording. Either Lessor or Lessee shall, upon request of the other,
execute, acknowledge and deliver to the other a "short form" memorandum of this
Lease for recording purposes.

26. Holding Over. If Lessee, with Lessor's consent, remains in possession of the
Premises or any part thereof after the expiration of the term hereof, such
occupancy shall be a tenancy from month to month upon all the provisions of this
Lease pertaining to the obligations of Lessee, but all options and rights of
first refusal, if any, granted under the terms of this Lease shall be deemed
terminated and be of no further effect during said month to month tenancy.

27. Cumulative Remedies. No remedy or election hereunder shall be deemed
exclusive but shall, wherever possible, be cumulative with all other remedies at
law or to equity.

28. Covenants and Conditions. Each provision of this Lease performable by Lessee
shall be deemed both a covenant and a condition.

29. Binding Effect; Choice of Law. Subject to any provisions hereof restricting
assignment or subletting by Lessee and subject to the provisions of Paragraph
17, this Lease shall bind the parties, their personal representatives,
successors and assigns. This Lease shall be governed by the laws of the State
wherein the Premises are located.

30. Subordination.

         (a) This Lease, at Lessors option, shall be subordinate to any ground
lease, mortgage, deed of trust, or any other hypothecation or security now or
hereafter placed upon the real property of which the Premises are a part and to
any and all advances made on the security thereof and to all renewals,
modifications, consolidations, replacements and extensions thereof.
Notwithstanding such subordination, Lessee's right to quiet possession of the
Premises shall not be disturbed if Lessee is not in default and so long as
Lessee shall pay the rent and observe and perform all of the provisions of this
Lease, unless this Lease is otherwise terminated pursuant to its terms. If any
mortgagee, trustee or ground lessor shall elect to have this Lease prior to the
lien of its mortgage, deed of trust or ground lease, and shall give written
notice thereof to Lessee, this Lease shall be deemed prior to such mortgage,
deed of trust, or ground lease, whether this Lease is dated prior or subsequent
to the date of said mortgage, deed of trust or ground lease or the date of
recording thereof.

         (b) Lessee agrees to execute any documents required to effectuate an
attornment, a subordination or to make this Lease prior to the lien of any
mortgage, deed of trust or ground lease, as the case maybe. Lessee's failure to
execute such documents within 10 days after written demand shall constitute a
material default by Lessee hereunder, or, at Lessor's option, Lessor shall
execute such documents on behalf of Lessee as Lessee's attorney-in-fact. Lessee
does hereby make, constitute and irrevocably appoint Lessor as Lessee's
attorney-in-fact and in Lessees name, place and stead, to execute such documents
in accordance with this paragraph 30(b).

31. Attorney's Fees. If either party or the broker named herein brings an action
to enforce the terms hereof or declare rights hereunder, the prevailing party in
any such action, on trial or appeal, shall be entitled to his reasonable
attorney's fees to be paid by the losing party as fixed by the court. The
provisions of this paragraph shall inure to the benefit of the broker named
herein who seeks to enforce a right hereunder.

32. Lessor's Access. Lessor and Lessor's agents shall have the right to enter
the Premises at reasonable times for the purpose of inspecting the same, showing
the same to prospective purchasers, lenders, or lessees, and making such
alterations, repairs, improvements or additions to the Premises or to the
building of which they are a part as Lessor may deem necessary or desirable.
Lessor may at any time place on or about the Premises any ordinary "For Sale"
signs and Lessor may at any time during the last 120 days of the term hereof
pace on or about the Premises any ordinary "For Lease" signs, all without rebate
of rent or liability to Lessee.

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

34. Signs. Lessee shall not place any sign upon the Premises without Lessor's
prior written consent except that Lessee shall have the right, without the prior
permission of Lessor to place ordinary and usual for rent or sublet signs
thereon.

35. Merger. The voluntary or other surrender of this Lease by Lessee, or a
mutual cancellation thereof, or a termination by Lessor, shall not work a
merger, and shall, at the option of Lessor, terminate all or any existing
subtenancies or may, at the option of Lessor, operate as an assignment to Lessor
of any or all of such subtenancies.

36. Consents. Except for paragraph 33 hereof, wherever in this Lease the consent
of one party is required to an act of the other party such consent shall not be
unreasonably withheld.

37. Guarantor. In the event that there is a guarantor of this Lease, said
guarantor shall have the same obligations as Lessee under this Lease.

38. Quiet Possession. Upon Lessee paying the rent for the Premises and observing
and performing all of the covenants, conditions and provisions on Lessee's part
to be observed and performed hereunder, Lessee shall have quiet possession of
the Premises for the entire term hereof subject to all of the provisions of this
Lease. The individuals executing this Lease on behalf of Lessor represent and
warrant to Lessee that they are fully authorized and legally capable of
executing this Lease on behalf of Lessor and that such execution is binding upon
all parties holding an ownership interest in the Premises.

39. Options.

    39.1 Definition. As used in this paragraph the word "Options" has the
following meaning: (1) the right or option to extend the term of this Lease or
to renew this Lease or to extend or renew any lease that Lessee has on other
property of Lessor; (2) the option or right of first refusal to lease the
Premises or the right of first offer to lease the Premises or the right of first
refusal to lease other property of Lessor or the right of first offer to lease
other property of Lessor; (3) the right or option to purchase the Premises, or
the right of first refusal to purchase the Premises, or the right of first offer
to purchase the Premises or the right or option to purchase other property of
Lessor, or the right of first refusal to purchase other property of Lessor or
the right of first offer to purchase other property of Lessor.

                                      -5-

<PAGE>

    39.2 Options Personal. Each Option granted to Lessee in this Lease are
personal to Lessee and may not be exercised or be assigned voluntarily or
involuntarily by or to any person or entity other than Lessee provided however
the Option may be exercised [ILLEGIBLE] Lessee-Affiliate as defined in paragraph
12.2 of this Lease. The Options herein granted to Lessee are not assignable
separate and apart from this Lease.

    39.3 Multiple Options. In the event that Lessee has any multiple options to
extend or renew this Lease a later option cannot be exercised unless the prior
option to extend or renew this Lease has been so exercised.

    39.4 Effect of Default on Options.

         (a) Lessee shall have no right to exercise an Option, notwithstanding
any provision in the grant of Option to the contrary, during the time commencing
from the date Lessor gives to Lessee a notice of default pursuant to paragraph
13.1(b) or 13.1(c) and continuing [ILLEGIBLE] the default alleged in said notice
of default is cured, or [ILLEGIBLE] during the period of time commencing on the
day after a monetary obligation to Lessor is due from Lessee and unpaid (without
any necessity for notice [ILLEGIBLE] to Lessee) continuing until the obligation
is paid [ILLEGIBLE] default described in paragraphs 13.1(a), 13.1(d) or 13.1(e)
without any necessity of Lessor to give notice of such default to Lessee, or in
the event that Lessor has given to Lessee three or more notices of default under
paragraph 13.1(b), where a late charge has become payable under paragraph 13.4
for each of such defaults, or paragraph 13.1(c), whether or not the defaults are
cured, during the 12 month period prior to the time that Lessee intends to
exercise the subject Option.

         (b) The period of time within which an Option may be exercised shall
not be extended or enlarged by reason of Lessee's [ILLEGIBLE] to exercise an
Option because of the provisions of paragraph 39.4(a).

         (c) All rights of Lessee under the provisions of an Option shall
terminate and be of no further force or effect notwithstanding [ILLEGIBLE] and
timely exercise of the Option, if after such exercise and during the term of
this Lease, (i) Lessee fails to pay to Lessor a monetary obligation of Lessee
for a period of 30 days after such obligation becomes due (without any necessity
of Lessor to give notice thereof to Lessee and Lessee fails to commence to cure
a default specified in paragraph 13.1(c) within 30 days after the date that
Lessor gives notice to Lessee of such default and/or Lessee fails thereafter to
diligently prosecute said cure to completion , or (ii) Lessee commits a default
described in paragraph 13.1(a), 13 1(d) or 13.1(e) (without any necessity of
Lessor to give notice of such default to Lessee); or (iv) Lessor gives to Lessee
three or more notices of default under paragraph 13.1(b), where a late charge
becomes payable under paragraph 13.4 for each such default, or paragraph
13.1(c), whether or not the defaults are cured.

40. Multiple Tenant Building. In the event that the Premises are part of a
larger building or group of buildings then Lessee agrees that it will abide by,
keep and observe all reasonable rules and regulations which Lessor may make from
time to time for the management safety care, and cleanliness of the building and
grounds, the parking of vehicles and the preservation of good order therein as
well as for the convenience of other occupants and tenants of the building. The
violations of any such rules and regulations shall be deemed a material breech
of this Lease by Lessee.

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

42. Easements. Lessor reserves to itself the right, from time to time, to grant
such easements, rights and dedications that Lessor deems necessary or desirable,
and to cause the recordation of Parcel Maps and restrictions, so long as such
easements, rights, dedications, Maps and restrictions do not unreasonably
interfere with the use of the Premises by Lessee. Lessee shall sign any of the
aforementioned documents upon request of Lessor and failure to do so shall
constitute a material breach of this Lease.

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

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

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

46. Insuring Party. The insuring party under this lease shall be the lessee
                                                                     -----------

47. Addendum. Attached hereto is an addendum or addenda containing paragraphs
N/A through N/A which constitutes a part of this Lease.
---         ---

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

         IF THIS LEASE HAS BEEN FILLED IN IT HAS BEEN PREPARED FOR SUBMISSION TO
         YOUR ATTORNEY FOR HIS APPROVAL. NO REPRESENTATION OR RECOMMENDATION IS
         MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION OR BY THE REAL
         ESTATE BROKER OR ITS AGENTS OR EMPLOYEES AS TO THE LEGAL SUFFICIENCY,
         LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION
         RELATING THERETO; THE PARTIES SHALL RELY SOLELY UPON THE ADVICE OF
         THEIR OWN LEGAL COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS
         LEASE.

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

<TABLE>
<S>                                         <C>
Executed at ________________________        WOOD ALLIANCE S.P. INC.

on    12-28-88                              By /s/ Monte D. Wood, President 12-28-88
   ---------------------------------          ------------------------------------------------

Address ____________________________        By /s/ James D. Childers, Vice President 12-28-88
                                              ------------------------------------------------

____________________________________                      "LESSOR" (Corporate seal)

Executed at ________________________        ___________________________________________________

on   12-28-88                               By /s/ Monte D. Wood
   ---------------------------------           ------------------------------------------------

Address ____________________________        By /s/ James D. Childers
                                               ------------------------------------------------

                                                           "LESSEE' (Corporate seal)
</TABLE>

For these terms write or call the American Industrial Real Estate Association,
350 South Figueroa St., Suite 275, Los Angeles, CA 90071

(C) 1980 By American Industrial Real Estate Association. All rights reserved. No
part of these words may be reproduced in any form without permission in writing,

<PAGE>

                  #48.     As per paragraph #30, lessee's interest in this lease
                           shall be subordinate to the first Deed of Trust held
                           by Truckee River Bank on the real property of which
                           the premises are a part.

                  #49.     As noted herein, the base rent of $     per month is
                           tied directly to the lessor's payment by virtue of
                           his financing of the subject real property.
                           Wherefore, the parties agree that the monthly
                           payments to the lessor shall be adjusted
                           proportionately with any increase or decrease in
                           lessor's monthly payment on the subject loan.

LESSOR:  Monte D. Wood and James D. Childers

By:   /s/ Monte D. Wood                                  Date:   12-28-88
    -------------------------------------------------          -----------------
         Monte D. Wood

By:   /s/ James D. Childers                              Date:   12-28-88
    -------------------------------------------------          -----------------
         James D. Childers

LESSEE:  Wood Alliance S.P., Inc.
         dba Wood Associates

By:   /s/ Monte D. Wood                                  Date:   12-28-88
    -------------------------------------------------          -----------------
         Monte D. Wood, President

By:   /s/ James D. Childers                              Date:   12-28-88
    -------------------------------------------------          -----------------
         James D. Childers, Vice President

<PAGE>

                  Amendment to Standard Industrial Lease - NET

                       dated 12/22/88 and attached hereto

         This amendment to the above mentioned and attached lease dated 12/22/88
is entered into between Monte D. Wood and James D. Childers, (Lessors) and Wood
Alliance S.P., Inc. dba Wood Associates (Lessee) on this day, March 13, 1997.

         Modification to section 3.1, Term, is made as follows:

                      3.1  Term. The term of this Lease shall be for 25 years
                           commencing on December 30, 1988 and ending on
                           December 31, 2013, unless sooner terminated pursuant
                           to any provision hereof. After each ten (10) year
                           period (1998 and 2008), Wood associates has the right
                           to cancel said lease by providing written
                           notification to the Lessors ninety (90) days prior to
                           the anniversary date of the original lease agreement.

         Lessor and Lessee have carefully reviewed this amendment to the
referenced lease agreement and agree to such amendment on this 13/th/ day of
March, 1997.

Lessor:                                    Lessee:

/s/ Monte D. Wood                          /s/ Lori Halland
----------------------------------         -------------------------------------
Monte D. Wood                              Wood Alliance, S.P. Inc,
                                                    dba Wood Associates

/s/ Jim D. Childers
----------------------------------
Jim D. Childers

<PAGE>

                            SECOND AMENDMENT TO LEASE

                       3073 Corvin Drive; Santa Clara, CA.

         This Second Amendment is entered into effective July 1, 1998, with
respect to that certain lease dated December 22, 1998 by and between Monte D.
Wood and James D. Childers ("Lessor") and Wood Alliance, S.P. Inc. dba Wood
Associates ("Lessee"), as previously amended (the "Lease"):

                  1.       Section 3.1 of the lease is amended to read in full
                           as follows:

                           "3.1 Term. The term of this Lease shall be for
                           Twenty-five (25) years commencing on December 30,
                           1988 and ending on December 31, 2013 unless sooner
                           terminated pursuant to any provision hereof."

                  2.       The first sentence of Section 4 of the Lease is
                           amended to read in full as follows:

                           "Lessee shall pay to Lessor as rent for the Premises,
                           monthly payments of $11,000.00 in advance, on the
                           first day of each month commencing January 1, 1998
                           and continuing through July 31, 1998, and monthly
                           payments of $13,000.00, in advance, on the first day
                           of each month commencing August 1, 1998 and
                           continuing each month for the remainder of the term
                           hereof."

                  3.       Except as provided herein, all terms and conditions
                           of the Lease shall remain in full force and effect.

                  Executed by Lessor and Lessee effective July 1, 1998

LESSOR:                                 LESSEE:

/s/ Monte D. Wood                       /s/ Shirley Burt
-------------------------------         ----------------------------------------
Monte D. Wood                           Wood Alliance, S.P. Inc.
                                        d/b/a Wood Associates

/s/ James D. Childers
-------------------------------
James D. Childers

<PAGE>

                            THIRD AMENDMENT TO LEASE

                       3073 Corvin Drive; Santa Clara, CA

         This Third Amendment is entered into effective December 18, 2000 with
respect to that certain lease dated December 22, 1988 by and between Monte D.
Wood and James D. Childers ("Lessor" and Wood Alliance, Inc . d/b/a Wood
Associates ("Lessee") as previously amended (the "Lease"):

                  1.       Section 4 of the lease is amended to read in full as
                           follows:

                           "Lessee shall pay to Lessor as rent for the Premises,
                           monthly payments of $11,000.00 in advance on the
                           first day of each month commencing January 1, 1988
                           and continuing through July 31, 1998; and, monthly
                           payments of $13,000.00 in advance, on the first day
                           of each month commencing August 1, 1998 and
                           continuing through December 30, 2000; and, monthly
                           payments of $26,000.00 in advance on the first day of
                           each month commencing January 1, 2001 and continuing
                           each month for the remainder of the term hereof."

                  2.       Except as provided herein, all terms and conditions
                           of the Lease shall remain in full force and effect.

                  Executed by Lessor and Lessee effective December 18, 2000.

LESSOR:                             LESSEE:

/s/ Monte D. Wood                   /s/ Peter Dalton
---------------------------         --------------------------------------------
Monte D. Wood                       Wood Alliance, Inc.
                                    d/b/a Wood Associates
                                    by Peter Dalton, CFO

/s/ James D. Childers
---------------------------
James D. Childers

<PAGE>

                            FOURTH AMENDMENT TO LEASE

                   3073 Corvin Drive, Santa Clara, California

         This Fourth Amendment to Lease is entered into effective this 31st day
of August 2001 with respect to that certain Lease (the "Lease"), dated December
22, 1988, by and between Monte D. Wood and James D. Childers as "Lessor" and
Wood Alliance, Inc. dba Wood Associates as "Lessee," as heretofore amended
March 13, 1997, July 1, 1998, and December 18, 2000.

         NOW THEREFORE, the Lease is hereby amended as follows:

         1.   Section 3.1 of the Lease is amended to read in full as follows:

                   "Term. The term of this Lease shall be for 25 Years,
         commencing on December 30, 1988, and ending on December 31, 2013,
         unless sooner terminated pursuant to any provision hereof.
         Notwithstanding the foregoing, each of Lessee and Lessor shall have the
         right to terminate this Lease upon 24 months written notice to the
         other."

         2.   Section 49 of the Lease is hereby deleted in its entirety.

         3.   Other than as expressly set forth herein, all terms and conditions
of the Lease shall remain in full force and effect.

         IN WITNESS WHEREOF, Lessor and Lessee have entered into this Fourth
Amendment to Lease as of the date first set forth above.

LESSOR                                    LESSEE

                                          WOOD ALLIANCE, INC.

/s/ Monte D. Wood                         /s/ Peter Dalton
-----------------------------             -----------------------------
Monte D. Wood                             Peter Dalton, Chief Financial Officer

/s/ James D. Childers
-----------------------------
James D. Childers

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}]]