Document:

EXHIBIT 10.5

                           Wire One Technologies, Inc.
                                 225 Long Avenue
                           Hillside, New Jersey 07205

                                                     April 24, 2002

Mr. Michael Brandofino
325 Goldfinch Drive
Bridgewater, NJ 08807

Dear Mike:

      This letter, when accepted by you, shall constitute an amendment to the
employment agreement (the "Agreement") dated January 2, 2001, between Wire One
Technologies, Inc. (the "Company") and you. Capitalized terms not defined herein
shall have the respective meanings ascribed to them under the Agreement. The
Company and you hereby agree as follows:

      1.    Effective as of the date of this Amendment, your title shall be
            Executive Vice President and Chief Technology Officer.

      2.    The Employment Period shall be extended for a fourth year so as to
            expire on December 31, 2004.

      3.    Your base salary compensation for the period January 1, 2004,
            through December 31, 2004, shall be payable at the annual rate of
            $235,000.

      4.    Subject to the provisions of this paragraph 3, the Company agrees to
            grant to you an additional stock option (the "Option") under the
            Company's 2000 Stock Incentive Plan (the "Plan") to purchase 15,000
            shares of the Company's common stock (the "Common Stock"), at an
            exercise price per share equal to the closing price of the Common
            Stock on the NASDAQ National Market on the date hereof. Your right
            to exercise the Option shall vest 33 1/3% (i.e., as to 5,000 shares
            of Common Stock) on each of the first, second and third
            anniversaries of the date hereof. The foregoing, as well as such
            other terms and conditions as the Company may deem appropriate,
            shall be set forth in a definitive stock option agreement in the
            Company's customary form. Your rights as an optionee shall, to the
            extent not inconsistent with this agreement, be governed by the
            terms of such stock option agreement and the Plan. The Company shall
            cause the shares of Common Stock issuable upon the exercise of the
            Option to be registered on Form S-8 and/or Form S-3 (or any
            successor form) under the Securities Act of 1933, as amended.

      5.    Except as modified hereby, the Agreement remains in full force and
            effect.

                                        Yours very truly,

                                        WIRE ONE TECHNOLOGIES, INC.

                                        By:       /s/
                                           -------------------------------------

ACCEPTED:

/s/
----------------------------
Michael BrandofinoExhibit 10.14

LEASE AND LEASE AGREEMENT, dated as of March 27, 2002, between ROUTE 206
ASSOCIATES, a New Jersey partnership, with offices at 520 Route 22, P.O. Box
6872, Bridgewater, NJ 08807 (the "Landlord"), and ENZON, INC., a Delaware
corporation, with an office at 20 Kingsbridge Road, Piscataway, NJ 08854 (the
"Tenant").

Subject to all the terms and conditions set forth below, the Landlord and the
Tenant hereby agree as follows:

1. Definitions.

Certain terms and phrases used in this Agreement (generally those whose first
letters are capitalized) are defined in Exhibit E attached hereto and, as used
in this Agreement, they shall have the respective meanings assigned or referred
to in that exhibit.

2. Lease of the Leased Premises.

2.1. The Landlord shall, and hereby does, lease to the Tenant, and the Tenant
shall, and hereby does, accept and lease from the Landlord, the Leased Premises
during the Term. The Leased Premises consist of 18,809 square feet of gross
rentable floor space on the third floor of 685 Route 202/206, Bridgewater, New
Jersey as more fully described in the definition of Leased Premises set forth in
Exhibit E attached hereto.

2.2. The Landlord shall, and hereby does, grant to the Tenant, and the Tenant
shall, and hereby does, accept from the Landlord, the non-exclusive right to use
the Common Facilities during the Term for itself, its employees, other agents
and Guests in common with the Landlord, any tenants of Other Leased Premises,
any of their respective employees, other agents and guests and such other
persons as the Landlord may, in the Landlord's sole discretion, determine from
time to time.

3. Rent.

3.1. The Tenant shall punctually pay the Rent for the Leased Premises for the
Term to the Landlord in the amounts and at the times set forth below, without
bill or other demand and without any offset, deduction or, except as may be
otherwise specifically set forth in this Agreement, abatement whatsoever.

3.2. The Basic Rent for the Leased Premises during the Initial Term shall be at
the rate per year set forth below.

          Years                     Annual Rate       Monthly Installments
          -----                     -----------       --------------------
    one through three               $470,225.04           $39,185.42
      four and five                 $489,034.08           $40,752.84

      The annual rate of Basic Rent for the Leased Premises during any Renewal
Term shall be calculated as set forth in subsection 6.1.4 of this Agreement for
the respective Renewal Term.

3.3. The Tenant shall punctually pay the applicable Basic Rent in equal monthly
installments in advance on the first day of each month during the Term, with the
exception of Basic Rent for the first full calendar month of the Initial Term.
The Tenant shall pay the Basic Rent for the first full calendar month of the
Initial Term upon execution and delivery of this Agreement. The Tenant shall
punctually pay the Basic Rent for a period of less than a full calendar month at
the beginning of the Term on the Commencement Date.

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3.4. The Basic Rent and the Additional Rent for any period of less than a full
calendar month shall be prorated. In the event that any installment of Basic
Rent cannot be calculated by the time payment is due, such portion as is then
known or calculable shall be then due and payable; and the balance shall be due
thirty (30) days next following the Landlord's giving notice to the Tenant of
the amount of the balance due, subject to Tenant's right to make inquiry
regarding said calculation and receive reasonable back-up documentation from
Landlord with respect thereto.

3.5. The Additional Rent for the Leased Premises during the Term shall be
promptly paid by the Tenant in the respective amounts and at the respective
times set forth in this Agreement.

3.6. That portion of any amount of Rent or other amount due under this Agreement
which is not paid within five (5) days next following the date that such amount
is first due shall incur a late charge equal to the sum of: (i) five percent of
that portion of any amount of Rent or other amount due under this Agreement
which is not so paid, and (ii) interest on that portion of any amount of Rent or
other amount due under this Agreement which is not paid within five (5) days
next following the date that such amount is first due at the Base Rate(s) in
effect from time to time plus two additional percentage points from the day such
portion is first due through the day of receipt thereof by the Landlord. Any
such late charge due from the Tenant shall be due immediately upon invoicing.

4. Term.

4.1. The Initial Term shall commence on the Commencement Date and shall continue
for five years from the beginning of the Initial Year, unless sooner terminated
in accordance with section 24 of this Agreement. The Term shall commence on the
Commencement Date and shall continue until the later of the conclusion of the
Initial Term or the conclusion of any Renewal Term, unless sooner terminated in
accordance with section 24 of this Agreement. Anything herein contained to the
contrary notwithstanding, if (i) the Work is being done exclusively by
contractors selected and retained by the Landlord and (ii) the conditions set
forth in subsection 4.2 of this Agreement shall not have been satisfied by July
1, 2002 (the "Outside Date"), then in that event, Tenant shall have the right at
any time thereafter, at its option, upon ten (10) days prior written notice to
Landlord, to terminate this Lease and any and all obligations hereunder, and
receive a prompt refund of its Security Deposit and prepaid rents provided that
the termination shall be ineffective if the conditions set forth in subsection
4.2 of this Agreement shall have been satisfied within the ten (10) period. The
Outside Date shall be deferred one day for each day that delivery of the Tenant
Plan occurs after the Tenant Plan Due Date. Anything herein contained to the
contrary notwithstanding, if (i) the Work is being done exclusively by
contractors selected and retained by the Landlord and (ii) the required permits
for the performance of the Work are not issued by the authorities having
jurisdiction by May 15, 2002, notwithstanding Landlord's good faith efforts to
secure the same, then Landlord shall have the right to terminate this Lease by
written notice dispatched to Tenant on or before May 20, 2002. If required
permits for the performance of the Work are not issued by the authorities having
jurisdiction by June 3, 2002, then Tenant shall have the right to terminate this
Lease by written notice dispatched to Landlord on or before June 10, 2002;
provided that these dates shall be deferred one day for each day that delivery
of the Tenant Plan occurs after the Tenant Plan Due Date. If either party
terminates this Lease pursuant to the foregoing two sentencest, Tenant shall be
entitled to receive a prompt refund of its Security Deposit and prepaid rents.

4.2. Unless one or more of the conditions contemplated by subsection 4.3 of this
Agreement occurs, the Commencement Date shall be the later of:

      4.2.1.      the Target Date; or

      4.2.2.      ten (10) days after the date that the last of each of the
                  following conditions set forth in this

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                  subsection 4.2.2 of the Agreement that is specifically
                  applicable shall have occurred:

                  4.2.2.1.    if the Work is being performed exclusively by
                              contractors selected and retained by the Landlord,
                              the date the Leased Premises can first be legally
                              occupied for its intended use pursuant to a
                              temporary or permanent certificate of occupancy;

                  4.2.2.2.    the Work is substantially completed (except for
                              (i) any long lead time items that may be required
                              that can not be delivered to the Leased Premises
                              in sufficient time to be incorporated into the
                              work in proper sequence and (ii) any preparation
                              work that is not being performed exclusively by
                              contractors selected and retained by the
                              Landlord); and

                  4.2.2.3.    the Landlord can deliver actual and exclusive
                              possession of the Leased Premises, free of rubbish
                              and debris, to the Tenant (except for any
                              contractors not selected and retained by the
                              Landlord and their rubbish and debris).

                  4.2.2.4.    Within ten (10) days of the execution of this
                              Lease, each party agrees to notify the other party
                              of the name and telephone number of its
                              construction representative for the project. The
                              ten (10) day period specified in subsection 4.2.2
                              shall commence when the Landlord's construction
                              representative notifies the Tenant's construction
                              representative that the conditions set forth in
                              subsection 4.2.2 of this Agreement will be met.

                  4.2.2.5.    The Commencement Date shall occur even though no
                              temporary or permanent certificate of occupancy
                              has been issued if the issuance of the certificate
                              of occupancy is delayed because any work which is
                              being performed by contractors engaged by Tenant
                              is incomplete or fails to meet applicable code
                              requirements (a "Completion Delay").

                  4.2.2.6.    If a Completion Delay occurs then, when the
                              Completion Delay is removed by Tenant, the
                              Landlord shall remain responsible promptly to
                              secure a certificate of occupancy. If the
                              certificate of occupancy is a temporary
                              certificate, the Landlord shall remain responsible
                              promptly to correct and complete any items
                              necessary to secure an unconditional certificate
                              of occupancy.

4.3. In the event one or more of the conditions contemplated by this subsection
4.3 of the Agreement occurs, notwithstanding anything to the contrary set forth
in subsection 4.2 of this Agreement, the Commencement Date shall be the earliest
applicable date specified below:

      4.3.1.      the earliest date the Tenant takes any of the following
                  actions shall be the Commencement Date in the event the Tenant
                  takes possession of the Leased Premises for the operation of
                  its business; it being agreed that anything in this Lease
                  contained to the contrary notwithstanding, Tenant shall have
                  access to the Leased Premises on a rent-free basis for thirty
                  (30) days prior to the Commencement Date for purposes of
                  taking measurements, installing cabling and wiring and
                  furniture, furnishings and equipment;

      4.3.2.      the Target Date in the event the Tenant does not timely: (i)
                  deliver the Tenant Plan to the Landlord by the Tenant Plan Due
                  Date and (ii) sign and return the notice contemplated by the
                  second sentence of subsection 5.3 of this Agreement to the
                  Landlord; or

      4.3.3.      the date that the last of the conditions set forth in
                  subsection 4.2.2 of this Agreement that is specifically
                  applicable shall have occurred if (i) the Tenant shall have
                  made a written

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                  request to Landlord to complete the work before the Target
                  Date and (ii) Landlord shall have done so.

4.4. Once it is ascertained in accordance with subsections 4.2 and 4.3 of this
Agreement, the Landlord shall give prompt notice of the Commencement Date to the
Tenant; and if the Tenant does not object thereto by notice given to the
Landlord within 10 days of the Landlord's notice, the date set forth in the
Landlord's notice shall thereafter be conclusively presumed to be the
Commencement Date.

5. Preparation of the Leased Premises.

5.1. The Tenant shall cause the Tenant Plan to be prepared and shall deliver the
complete Tenant Plan to the Landlord not later than the Tenant Plan Due Date.
The Tenant Plan shall be prepared at the Tenant's expense which shall be
reimbursable from the Allowance. It shall include the details specified in the
definition of Tenant Plan and the location and extent of any special floor
loading; special air conditioning requirements, if any; plumbing requirements,
if any; and estimated total electrical load, including lighting requirements,
lighting switch requirements and electrical outlet requirements, if any, in
excess of the building standard being provided by the Landlord, setting forth
the amount of the load, locations and types.

5.2. The Landlord shall cause the work required to complete the Tenant Plan (the
"Work") to be performed by the Landlord or the Landlord's contractors in a good
and workmanlike manner substantially in accordance with the Tenant Plan
utilizing the Allowance to pay the price of the Work. The price shall include 5%
of the Landlord's contractors' aggregate price for the Landlord's overhead and
5% of the contractor's aggregate price as the Landlord's general contracting
fee, but only to the extent that the cost of the Work, as agreed by Landlord and
Tenant in writing, exceeds the total amount of the Allowance. If the cost of the
Work including the fees exceeds the Allowance, Tenant shall pay the balance of
such price to the Landlord in proportion to the progress of such work, as and
when billed by the Landlord at convenient intervals, with payment of any
remaining final balance due from the Tenant prior to the Commencement Date. If
the cost of the Work is less than the Allowance, the balance shall be credited
to Base Rent first falling due, until exhausted. The Work shall not include the
installation of any telecommunications or computer wiring or the cost thereof.
Tenant, at its expense, may install its own security system regulating access to
the Leased Premises but, in such event (i) Tenant must provide the names and
contact numbers for employees available to provide access for emergency services
on a 24 hour per day basis; (ii) Tenant must arrange for access for the cleaning
contractor and its personnel at the normal times which such contractor and its
personnel perform their services; (iii) Tenant must supply access information to
the Bridgewater Fire Department so that they can gain access in an emergency;
and (iv) Tenant must comply with the requirements of section 13 of this
Agreement.

5.3. Prior to commencing the work, within ten (10) business days of receipt of
the Tenant Plan Landlord shall provide a quote of the price to perform the Work.
Within five (5) days of receipt of the quote from Landlord, Tenant shall
confirm, in writing, that the price is acceptable. If Tenant is not satisfied
with the price and the parties are unable to agree upon the price then the
Tenant shall be free to engage its own contractors to perform the work provided
that Tenant shall select the heating, air-conditioning, sprinkler and electrical
contractors from a list of qualified contractors furnished to Tenant by
Landlord. In such event, Tenant shall secure all permits and perform the work in
a good and workmanlike manner in accordance with all applicable codes and secure
a certificate of occupancy. Landlord shall advance the Allowance at reasonable
intervals within not more than ten (10) days following Tenant's draw request, as
the Work progresses.

5.4. Within four (4) weeks of the Commencement Date, Landlord shall also perform
the work required by the Work Letter set forth in Exhibit C at no cost to the
Tenant.

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6. Options.

6.1 Tenant is hereby granted one option to renew this Lease for one five year
period upon the following terms and conditions:

      6.1.1       At the time of the exercise of the option to renew and at the
                  time of said renewal, (a) the Tenant shall not be in default
                  following the delivery of notice and the expiration of all
                  applicable cure periods in accordance with the terms and
                  provisions of this Lease; and (b) Tenant shall occupy and be
                  in operation at the entire Leased Premises pursuant to this
                  Lease subject to approved subleases or sublease permitted
                  hereby and subject to arrangements contemplated by Section
                  17.7, below.

      6.1.2       Notice of the exercise of the option shall be sent to the
                  Landlord in writing at least nine (9) months before the
                  expiration of the Initial Term.

      6.1.3       The Renewal Term shall be for a period of five years to
                  commence at the expiration of the Initial Term, and all of the
                  terms and conditions of this Agreement, other than the amount
                  of Annual Rent, shall apply during any such renewal term.

      6.1.4       Subject to the last sentence of this paragraph, the Annual
                  Rent to be paid during the Renewal Term shall be $545,460.96
                  payable in equal monthly installments of $45,455.08.

6.2. Tenant is hereby granted the following additional rights:

      6.2.1.      If Landlord learns that the suite contiguous to the Leased
                  Premises will become available, it shall first offer the same
                  to Tenant by written notice. This is the "Right of First
                  Offer". The notice shall contain the terms upon which the
                  space is offered including the basic rent, the commencement
                  date, the term, the allowance, if any, and any other terms
                  which Landlord proposes. If Tenant wishes to lease the space
                  on the terms offered, it shall notify the Landlord in writing
                  within seven (7) business days of Tenant's receipt of such
                  written notice setting forth all of the above-required
                  information, and, thereupon, Tenant shall be bound to lease
                  the same on the same terms as are set forth in this Agreement
                  modified by the specific terms which are set forth in
                  Landlord's notice. Tenant shall execute a lease amendment to
                  incorporate these terms including an obligation to execute a
                  Commencement Date certificate and estoppel certificates. If
                  Tenant fails to serve the written acceptance of the offer
                  within the seven (7) business day period, the Right of First
                  Offer shall thereupon expire and be of no further force and
                  effect. Notwithstanding the provisions of the preceding
                  sentence, the Right of First Offer shall revive if Landlord
                  does not consummate a lease with another tenant within five
                  (5) months after the expiration of the Right of First Offer as
                  above provided or if Landlord proposes to enter into a lease
                  with another tenant on terms which are materially more
                  favorable than the terms offered to Tenant. For this purpose,
                  the terms shall be considered materially more favorable if the
                  net effective rent offered to the other tenant is ninety-two
                  and one-half (92.5%) percent, or less, than the net effective
                  rent offered to Tenant or if the term offered to the other
                  tenant is eighty percent , or less, of the term offered to
                  Tenant. With respect to any further offers required under this
                  provision, if Tenant fails to serve a written acceptance of
                  the offer within a five (5) business day period following
                  receipt of Landlord's written offer, the Right of First Offer
                  shall, with respect to such offer, thereupon expire and be of
                  no further force and effect.

      6.2.2.      Until Landlord lets the available space in the basement,
                  Tenant may notify Landlord that it elects to lease the same
                  for the balance of the Term. This is the "Additional Right of
                  First

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                  Offer". After service of a notice electing to lease the
                  basement space, Tenant shall be bound to lease the same for
                  the balance of the Term for $13 per foot per year payable in
                  equal monthly installments. An amendment to this Agreement
                  shall be executed incorporating the storage space. The
                  inclusion of the storage space shall not change the Tenant's
                  Share. Tenant, at its expense, shall be responsible to install
                  the necessary fencing, lighting, outlets and switches and
                  other modifications required by applicable law for the use of
                  the storage space. Tenant shall comply with the provisions of
                  applicable law and the provisions of this Agreement including,
                  without limitation, section 12 in performing the work and in
                  the occupancy of the storage space. The storage space shall be
                  used primarily for storage of records and other office
                  equipment and supplies. If Landlord leases the basement space
                  to other tenants before service of a notice from the Tenant
                  exercising this Additional Right of First Offer, the
                  Additional Right of First Offer shall thereupon expire and be
                  of no further force and effect.

7. Use and Occupancy.

7.1. The Tenant may only occupy and use the Leased Premises during the Term
exclusively as a general office and such other ancillary and accessory uses as
are consistent with applicable codes.

7.2. In connection with the Tenant's use and occupancy of the Leased Premises
and use of the Common Facilities, the Tenant shall observe, and the Tenant shall
cause the Tenant's employees, other agents and Guests to observe, each of the
following:

      7.2.1.      the Tenant shall not do, or permit or suffer the doing of,
                  anything which might have the effect of creating an increased
                  risk of, or damage from, fire, explosion or other casualty;

      7.2.2.      the Tenant shall not do, or permit or suffer the doing of,
                  anything which would have the effect of (a) increasing any
                  premium for any liability, property, casualty or excess
                  coverage insurance policy otherwise payable by the Landlord or
                  (b) making any such types or amounts of insurance coverage
                  unavailable or less available to the Landlord;

      7.2.3.      to the extent they are not inconsistent with this Agreement,
                  the Tenant and the Tenant's employees, other agents and Guests
                  shall comply with the Building Rules and Regulations attached
                  hereto as Exhibit D, and with any changes made therein by the
                  Landlord if, with respect to any such changes, the Landlord
                  shall have given notice of the particular changes to the
                  Tenant and such changes shall not materially adversely affect
                  the conduct of the Tenant's business in the Leased Premises;
                  diminish the Tenant's rights under this Agreement or increase
                  Tenant's expenses under this Agreement;

      7.2.4.      the Tenant and the Tenant's employees, other agents and Guests
                  shall not create, permit or continue any Nuisance in or around
                  the Leased Premises, the Other Leased Premises, the Building,
                  the Common Facilities and the Property;

      7.2.5.      The Tenant and the Tenant's employees, other agents and Guests
                  shall not permit the Leased Premises to be regularly occupied
                  by more persons than are permitted by applicable codes. If the
                  Leased Premises are occupied by more than one individual per
                  200 square feet of usable floor space of the Leased Premises
                  then Tenant shall be responsible for any supplemental heating,
                  cooling and ventilation which may be required and the
                  performance of the heating and cooling systems according to
                  the specifications set forth in subsection 8.1.5 of this
                  Agreement is not guaranteed;

      7.2.6.      the Tenant and the Tenant's employees, other agents and Guests
                  shall comply with all

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                  Federal, state and local statutes, ordinances, rules,
                  regulations and orders as they pertain to the Tenant's
                  particular method or manner of use and occupancy of the Leased
                  Premises, to the conduct of the Tenant's business and to the
                  use of the Common Facilities, except that this subsection
                  shall not require the Tenant to make any changes that may be
                  required thereby that are generally applicable to commercial
                  office tenancies or to the Building as a whole;

      7.2.7.      the Tenant and the Tenant's employees, other agents and Guests
                  shall comply with the requirements of the Board of Fire
                  Underwriters (or successor organization) and of any insurance
                  carriers providing liability, property, casualty or excess
                  insurance coverage regarding the Property, the Building, the
                  Common Facilities or any portions thereof, and any other
                  improvements on the Property, except that this subsection
                  shall not require the Tenant to make any changes that may be
                  required thereby that are generally applicable to commercial
                  office tenancies or to the Building as a whole;

      7.2.8.      the Tenant and the Tenant's employees, other agents and Guests
                  shall not bring or discharge any material or substance (solid
                  liquid or gaseous) which is a Hazardous Substance, or conduct
                  any activity, in or on the Property, the Building, the Common
                  Facilities or the Leased Premises that shall have been
                  identified:

                  (i)   by the scientific community, or

                  (ii)  by any Federal, state or local statute (including,
                        without limiting the generality of the foregoing, the
                        Spill Compensation and Control Act (58 N.J.S.A. 10-23.11
                        et seq.); the Industrial Site Recovery Act ("ISRA")(13
                        N.J.S.A. 1 K-6 et seq.); the Resource Conservation and
                        Recovery Act of 1976 (42 U.S.C. 6901 et seq.) as
                        amended; the Comprehensive Environmental Response
                        Compensation and Liability Act of 1980 (42 U.S.C. 9601
                        et seq.); the Federal Water Pollution Control Act/Clean
                        Water Act (33 U.S.C. 1251 et seq.); the Clean Water Act
                        (33 U.S.C. 1251 et seq.); the Clean Air Act (42 U.S.C.
                        7401 et seq.); the Toxic Substances Control Act (15
                        U.S.C. 2601 et seq.); the Hazardous Materials
                        Transportation Act (49 U.S.C. 5101 et seq.) and the Safe
                        Drinking Water Act (42 U.S.C. 300f through 300j) as
                        amended, and the regulations adopted and publications
                        promulgated pursuant to said laws; and in any revisions
                        or successor codes as toxic or hazardous to health or to
                        the environment ("Environmental Laws") As used herein,
                        "Hazardous Substance" means any material or substance
                        which is toxic, ignitable, reactive, or corrosive; or
                        which is defined as "hazardous waste", "extremely
                        hazardous waste" or a "hazardous substance" by
                        Environmental Laws; or which is an asbestos,
                        polychlorinated biphenyl or a petroleum product; or
                        which is regulated by Environmental Laws;

      7.2.9.      the Tenant and the Tenant's employees, other agents and Guests
                  shall not draw electricity in the Leased Premises in excess of
                  the rated capacity of the electrical conductors and safety
                  devices including, without limiting the generality of the
                  foregoing, circuit breakers and fuses, by which electricity is
                  distributed to and throughout the Leased Premises and, without
                  the prior written consent of the Landlord in each instance,
                  shall not connect any fixtures, appliances or equipment to the
                  electrical distribution system serving the Building and the
                  Leased Premises other than typical professional office
                  equipment such as minicomputers, microcomputers, typewriters,
                  copiers, telephone systems, coffee machines and table top
                  microwave ovens, none of which, considered individually and in
                  the aggregate, overall and per fused or circuit breaker
                  protected circuit, shall exceed the above

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                  limits. The electric system is designed to deliver an average
                  of 8 watts per rentable square foot of which 2 watts is
                  lighting, in addition to the power for Base Building HVAC. The
                  Tenant Plan shall provide for any necessary circuitry for
                  microwave ovens and any other kitchen equipment;

      7.2.10.     on a timely basis the Tenant shall pay directly and promptly
                  to the respective taxing authorities any taxes (other than
                  Taxes) charged, assessed or levied exclusively on Tenant's
                  personal property within the Leased Premises or arising
                  exclusively from the Tenant's use and occupancy of the Leased
                  Premises; and

      7.2.11.     the Tenant shall not initiate any appeal or contest of any
                  assessment or collection of Taxes for any period without, in
                  each instance, the prior written consent of the Landlord
                  which, without being deemed unreasonable, the Landlord may
                  withhold if the Building was not 90% occupied by paying
                  tenants throughout that period or if the Tenant is not joined
                  by tenants of Other Leased Premises that leased throughout
                  that period, and that are then leasing, at least 80% of all
                  Other Leased Premises, determined by their gross rentable
                  floor space.

8. Utilities, Services, Maintenance and Repairs.

8.1. The Landlord shall provide or arrange for the provision of:

      8.1.1.      such maintenance and repair of the Building (except the Leased
                  Premises and Other Leased Premises); the Common Facilities;
                  and the heating, ventilation and air conditioning systems (but
                  not including supplemental cooling installed by or at the
                  request of Tenant), any plumbing systems and the electrical
                  systems in the Building, the Common Facilities, the Leased
                  Premises and Other Leased Premises all as is customarily
                  provided for first class office buildings in the immediate
                  area;

      8.1.2.      maintenance and repair of the Leased Premises, except for
                  refinishing walls and wall treatments, base, ceilings, floor
                  treatments and doors in general from time to time or for
                  gouges, spots, marks, damage or defacement caused by anyone
                  other than the Landlord, its employees and other agents, and
                  except for the Tenant's furniture, furnishings, equipment and
                  other property;

      8.1.3.      such garbage removal from the Building and the Common
                  Facilities and such janitorial services for the Building, the
                  Leased Premises and Other Leased Premises as is customarily
                  provided for first class office buildings in the immediate
                  area including, without limitation, removal of trash and
                  properly prepared recycling from the Leased Premises;

      8.1.4.      the electricity required for the operation of the Building,
                  the Property and the Common Facilities during Regular Business
                  Hours and, on a reduced service basis, during other than
                  Regular Business Hours, and, at all times, the electricity
                  required for the Leased Premises;

      8.1.5.      such heat, ventilation and air conditioning (but not including
                  supplemental cooling installed by or at the request of Tenant)
                  for the Building, the Leased Premises and Other Leased
                  Premises as is customarily provided for first class office
                  buildings in the immediate area for the comfortable use of the
                  Building during Regular Business Hours. Except as otherwise
                  provided, so long as the outside conditions are no worse than
                  those listed below, the heating and cooling systems shall
                  perform to the following specifications:

<TABLE>
<CAPTION>
                                                  Inside Conditions              Outside Conditions
                                                  -----------------              ------------------
<S>                                 <C>                                         <C>
                  Cooling Season:   78(Degree)F dry bulb                        94(Degree)F dry bulb
                                    +/-2(Degree) RH 50% +/-5%                   73(Degree)F wet bulb

                  Heating Season:   70(Degree)F +/-2(Degree) dry bulb:maximum   13(Degree)F dry bulb;
</TABLE>

                                     - 8 -
<PAGE>

      8.1.6.      water (including heated water) to the Building and, if the
                  appropriate plumbing has been installed therein, to the Leased
                  Premises;

      8.1.7.      sewage disposal for the Building;

      8.1.8.      passenger elevator service for the Building, 24 hours, 365
                  days per year;

      8.1.9.      snow clearance from, and sweeping of, Parking Facilities and
                  private access roads which are part of the Property or the
                  Common Facilities;

      8.1.10.     the maintenance of landscaping which is part of the Property
                  or the Common Facilities; and

      8.1.11.     Landlord shall use commercially reasonable efforts to provide
                  full cafeteria service on the first floor of the Building
                  serving five (5) days each week and seating not fewer than 90
                  patrons at any given time in its adjacent seating area. If the
                  cafeteria is reduced in size or eliminated then the Basic Rent
                  per foot shall be adjusted downward by the same amount by
                  which the Base Year Operating Expenses is reduced. The Basic
                  Rent shall be re-determined by multiplying the adjusted Gross
                  Footage by the adjusted Basic Rent per foot.

8.2. Except as specifically set forth in subsection 8.1 of this Agreement, the
Tenant shall maintain and repair the Leased Premises and keep the Leased
Premises in as good condition and repair, reasonable wear and use excepted, as
the Leased Premises are upon the completion of any improvements contemplated by
section 5 of this Agreement.

9. Allocation of the Expense of Utilities, Services, Maintenance, Repairs and
Taxes.

9.1. All Tenant Electric Charges shall be borne by the Tenant. It is agreed that
the Tenant Electric Charges are $1.50 per square foot per year, subject to the
provisions of subsection 10.10 of this Agreement.

9.2. Between the Commencement Date and the end of the No Pass Through Period,
the Tenant's Share of all Operational Expenses and Taxes incurred during such
period shall be borne by the Landlord.

9.3. Between the day after the end of the No Pass Through Period and the end of
the Term, the Tenant's Share of Operational Expenses and Taxes incurred during
each annual or shorter period ending on (a) December 31 of each year and (b) the
end of the Term shall be borne as follows:

      9.3.1.      the Tenant's Share of: Operational Expenses and Taxes incurred
                  during each such period of 12 months (or shorter period), up
                  to the amounts of Base Year Operational Expenses and Base Year
                  Taxes, respectively (or proportional amount thereof for
                  periods shorter than 12 months), shall be borne by the
                  Landlord; and

      9.3.2.      the Tenant's Share of: the amounts by which Operational
                  Expenses and Taxes incurred during each such period of 12
                  months (or shorter period) exceed Base Year Operational
                  Expenses and Base Year Taxes, respectively (or proportional
                  amount thereof for periods

                                     - 9 -
<PAGE>

                  shorter than 12 months) shall be allocated to, and borne by,
                  the Tenant as more specifically set forth in section 10 of
                  this Agreement.

10. Computation and Payment of Allocated Expenses of Utilities, Services,
    Maintenance, Repairs, Taxes and Capital Expenditures.

10.1. Subject to Tenant's right to request and promptly obtain from Landlord
detailed back-up information, Tenant's right to contest in good faith amounts
invoiced by Landlord, and Tenant's right to audit and inspect Landlord's books
and records, all as more fully hereinafter provided, the Tenant shall promptly
pay the following additional amounts to the Landlord at the respective times set
forth below:

      10.1.1.     commencing with the first day after the end of the No Pass
                  Through Period, and on the first day of each month thereafter
                  during the Term, one-twelfth of the Tenant's Share of the
                  amount by which Taxes for the then current calendar year
                  exceeds Base Year Taxes, computed in accordance with
                  subsection 10.5 of this Agreement. When Landlord knows of
                  facts which cause a revision of the estimate, it may serve a
                  revised estimate and, for the balance of the current calendar
                  year, the estimated payments shall be made accordingly;

      10.1.2.     within thirty (30) days of the Landlord's giving notice to the
                  Tenant after the close of each calendar year closing during
                  the Term, commencing with the first calendar year closing
                  after the close of the No Pass Through Period, and after the
                  end of the Term, the Tenant's Share of the difference between
                  the Landlord's previously projected amount of Taxes for such
                  period and the actual amount of Taxes for such period, in
                  either case in excess of Base Year Taxes, computed in
                  accordance with subsection 10.6 of this Agreement (unless such
                  difference is a negative amount, in which case the Landlord
                  shall credit such difference against any amounts next due from
                  the Tenant under subsections 10.1.1 and 10.5 of this
                  Agreement) or refund such amount to Tenant if at the
                  expiration of the Term;

      10.1.3.     commencing with the first day after the end of the No Pass
                  Through Period, and on the first day of each month thereafter
                  during the Term, one-twelfth of the Tenant's Share of the
                  amount by which Operational Expenses for the then current
                  calendar year exceed Base Year Operational Expenses, computed
                  in accordance with subsection 10.7 of this Agreement. When
                  Landlord knows of facts which cause a revision of the
                  estimate, it may serve a revised estimate and, for the balance
                  of the current calendar year, the estimated payments shall be
                  made accordingly;

      10.1.4.     within thirty (30) days of the Landlord's giving notice to the
                  Tenant after the close of each calendar year closing during
                  the Term, commencing with the first calendar year closing
                  after the close of the No Pass Through Period, and after the
                  end of the Term, the Tenant's Share of the difference between
                  the Landlord's previously projected amount of Operational
                  Expenses for such period and the actual amount of Operational
                  Expenses for such period, in either case in excess of Base
                  Year Operational Expenses, computed in accordance with
                  subsection 10.8 of this Agreement (unless such difference is a
                  negative amount, in which case the Landlord shall credit such
                  difference against any amounts next due from the Tenant under
                  subsections 10.1.3 and 10.7 of this Agreement) or refund such
                  amount to Tenant if at the expiration of the Term;

      10.1.5.     commencing with the first day of the first month after the
                  Landlord gives any notice contemplated by subsection 10.9 of
                  this Agreement to the Tenant and continuing on the first day
                  of each month thereafter until the earlier of (a) the end of
                  the Term or (b) the last month of the useful life set forth in
                  the respective notice, one-twelfth of the Tenant's Share

                                     - 10 -
<PAGE>

                  of any Annual Amortized Capital Expenditure, computed in
                  accordance with subsection 10.9 of this Agreement;

      10.1.6.     on the first day of each month during the Term, the monthly
                  Tenant Electric Charges, set forth in section 9.1 of this
                  Agreement as the same may be revised in accordance with
                  subsection 10.10 of this Agreement; and

      10.1.7.     promptly as and when billed therefor by the Landlord, the
                  amount of any expense which would otherwise fall within the
                  definition of Operational Expenses, but which is specifically
                  paid or incurred by the Landlord for operation and maintenance
                  of the Building, the Common Facilities or the Property outside
                  Regular Business Hours at the specific request of the Tenant.

10.2. "Operational Expenses" means all expenses paid or incurred by the Landlord
in connection with the Property, the Building, the Common Facilities and any
other improvements on the Property and their operation and maintenance (other
than Taxes (which are separately allocated to the Tenant in accordance with
subsections 10.1.1 and 10.1.2 of this Agreement), Capital Expenditures (which
are separately allocated to the Tenant in accordance with subsection 10.1.5 of
this Agreement) and those expenses contemplated by subsections 10.1.6 and 10.1.7
of this Agreement)) including, without limiting the generality of the foregoing:

      10.2.1.     Utilities Expenses;

      10.2.2.     the expense of providing the services, maintenance and repairs
                  contemplated by subsection 8.1 of this Agreement, whether
                  furnished by the Landlord's employees or by independent
                  contractors or other agents including without limitation the
                  costs associated with inspections required by law or for
                  determining necessity for maintenance;

      10.2.3.     wages, salaries, fees and other compensation and payments and
                  payroll taxes and contributions to any social security,
                  unemployment insurance, welfare, pension or similar fund and
                  payments for other fringe benefits required by law or union
                  agreement (or, if the employees or any of them are not
                  represented by a union, then payments for benefits comparable
                  to those generally required by union agreement in first class
                  office buildings in the immediate area which are unionized)
                  made to or on behalf of any employees of Landlord performing
                  services rendered in connection with the operation and
                  maintenance of the Building, the Common Facilities and the
                  Property, including, without limiting the generality of the
                  foregoing, elevator operators, elevator starters, window
                  cleaners, porters, janitors, maids, miscellaneous handymen,
                  watchmen, persons engaged in patrolling and protecting the
                  Building, the Common Facilities and the Property, carpenters,
                  engineers, firemen, mechanics, electricians, plumbers, other
                  tradesmen, other persons engaged in the operation and
                  maintenance of the Building, Common Facilities and Property,
                  Building superintendent and assistants, Building manager, and
                  clerical and administrative personnel;

      10.2.4.     the uniforms of all employees and the cleaning, pressing and
                  repair thereof;

      10.2.5.     premiums and other charges incurred by Landlord with respect
                  to all insurance relating to the Building, the Common
                  Facilities and the Property and the operation and maintenance
                  thereof, including, without limitation: property and casualty,
                  fire and extended coverage insurance, including windstorm,
                  flood, hail, explosion, other casualty, riot, rioting
                  attending a strike, civil commotion, aircraft, vehicle and
                  smoke insurance;

                                     - 11 -
<PAGE>

                  public liability insurance; elevator, boiler and machinery
                  insurance; excess liability coverage insurance; use and
                  occupancy insurance; workers' compensation and health,
                  accident, disability and group life insurance for all
                  employees; casualty rent insurance and such other insurance
                  with such limits as may, from time to time, be customary for
                  first class office buildings in the immediate area or which
                  Landlord may be required to secure by institutional mortgage
                  lenders;

      10.2.6.     sales and excise taxes and the like upon any Operational
                  Expenses and Capital Expenditures;

      10.2.7.     reasonable and customary management fees of any independent
                  managing agent for the Property, the Building or the Common
                  Facilities; and if there shall be no independent managing
                  agent, or if the managing agent shall be a person affiliated
                  with the Landlord, the management fees that would customarily
                  be charged for the management of the Property, the Building
                  and the Common Facilities by an independent, first class
                  managing agent in the immediate area, not to exceed five (5%)
                  percent of Basic Rent;

      10.2.8.     the cost of replacements forconsumable supplies used in the
                  operation, service, maintenance, inspection and repair of the
                  Building, the Common Facilities and the Property;

      10.2.9.     the cost of repainting or otherwise redecorating any part of
                  the Building or the Common Facilities incurred after the
                  expiration of first five years of the Term;

      10.2.10.    seasonal decorations for the lobbies and other Common
                  Facilities in the Building;

      10.2.11.    the cost of licenses, permits and similar fees and charges
                  related to operation, repair and maintenance of the Building,
                  the Property and the Common Facilities; and

      10.2.12.    any and all other commercially reasonable expenditures of the
                  Landlord in connection with the operation, repair or
                  maintenance of the Property, the Common Facilities or the
                  Building as a first-class office building and facilities in
                  the immediate area which are properly treated as an expense
                  fully deductible as incurred in accordance with generally
                  applied real estate accounting practice. In determining Base
                  Year Operational Expenses, Landlord may adjust any line item
                  which, when compared to the same line item for the year prior
                  to the Base Year, has increased at a rate which is more than
                  double the increase in the Index at the end of the year prior
                  to the Base Year compared to the Index at the end of the Base
                  Year. In such event, the actual expense incurred for the line
                  item in the Base Year shall be adjusted to equal the amount
                  incurred for the same line item for the year prior to the Base
                  Year multiplied by the sum of one plus the percentage increase
                  in the Index for the one year period. Similarly, with respect
                  to any line item which, when compared to the same line item
                  for the year prior to the Base Year has decreased at a rate
                  which is more than double any percentage change in the Index
                  at the end of the year prior to the Base Year compared to the
                  Index at the end of the Base Year, the actual expense incurred
                  for the line item in the Base Year shall be adjusted to equal
                  the amount incurred for the same line item for the year prior
                  to the Base Year multiplied by one minus the percentage change
                  in the Index for the one year period.

10.3. "Capital Expenditures" means the following described expenditures incurred
or paid by the Landlord during the term of this Lease in connection with the
Property, the Building, the Common Facilities and any other improvements on the
Property:

                                     - 12 -
<PAGE>

      10.3.1.     all costs and expenses incurred by the Landlord in connection
                  with retro-fitting the entire Building or the Common
                  Facilities, or any portion thereof, to comply with any change
                  in Federal, state or local statute, rule, regulation, order or
                  requirement which change first takes effect after the
                  execution of this Lease; and

      10.3.2.     all costs and expenses incurred by the Landlord in connection
                  with the installation of any energy, labor or other cost
                  saving device or system on the Property or in the Building or
                  the Common Facilities but only to the extent that the
                  Landlord's reasonable projection of the Annual Amortized
                  Capital Expenditure is less than or equal to the Landlord's
                  reasonable estimate of the cost which would have been incurred
                  on an annual basis had the Capital Expenditure not been made.

10.4. Neither "Operational Expenses" nor "Capital Expenditures" shall include
any of the following:

      10.4.1.     principal or interest on any mortgage indebtedness on the
                  Property, the Building or any portion thereof or any ground
                  rents;

      10.4.2.     any capital expenditure, or amortized portion thereof, other
                  than those included in the definition of Capital Expenditures
                  set forth in subsection 10.3 above;

      10.4.3.     expenditures for any leasehold improvement which is made in
                  connection with the preparation of any portion of the Building
                  for occupancy by a new tenant or which is not also made
                  generally to or for the benefit of the Leased Premises and all
                  Other Leased Premises or generally to the Building or the
                  Common Facilities;

      10.4.4.     to the extent the Landlord actually receives or is eligible to
                  collect proceeds of property and casualty insurance policies
                  on the Building, other improvements on the Property or the
                  Common Facilities, expenditures for repairs or replacements
                  occasioned byfire or other casualty to the Building or the
                  Common Facilities;

      10.4.5.     expenditures for repairs, replacements or rebuilding
                  occasioned by any of the events contemplated by section 16 of
                  this Agreement;

      10.4.6.     expenditures for costs, including legal, accounting,
                  advertising and leasing commissions, incurred in connection
                  with efforts to lease portions of the Building and to procure
                  new tenants for the Building;

      10.4.7.     expenditures for the salaries and benefits of the employees,
                  if any, of the Landlord above the level of on-site manager;

      10.4.8.     depreciation of the Building, the Common Facilities and any
                  other improvement on the Property in accordance with GAAP; and

      10.4.9.     Notwithstanding any contrary provisions of Section 10 neither
                  "Operating Expenses" nor "Capital Expenditures" shall include
                  costs or expenditures for any of the following:

                  10.4.9.1.   any costs or expenditures regarded as capital
                              costs or expenditures other than those expressly
                              provided at Section 10.3 above;

                  10.4.9.2.   fines and penalties;

                                     - 13 -
<PAGE>

                  10.4.9.3.   tort claims and expenses of the investigation and
                              defense thereof;

                  10.4.9.4.   amounts in excess of fair market rates in respect
                              of any transaction with, or provision of any item
                              or service by, Landlord or any affiliate of
                              Landlord;

                  10.4.9.5.   personal property or equipment rental costs if the
                              purchase of same would not be includable in
                              Operating Expenses;

                  10.4.9.6.   cost of acquisition of the land, construction of
                              the Building, site improvements, parking areas and
                              facilities now or hereafter forming a part of the
                              Property;

                  10.4.9.7.   costs associated with the refinancing of any of
                              Landlord's debt;

                  10.4.9.8.   reserves for future expenditures or liabilities
                              which would be incurred subsequent to the then
                              current accounting years;

                  10.4.9.9.   any bad debt loss, rent loss or reserves for bad
                              debt or rent loss;

                  10.4.9.10.  any and all legal and other fees, audit fees,
                              inspection fees (other than those described in
                              subsection 10.2.2 of this Agreement), appraisal
                              fees, leasing, commissions, advertising expenses
                              and other costs incurred in connection with the
                              acquisition, development, leasing and ownership of
                              the Property;

                  10.4.9.11.  costs of repairing or restoring any portion of the
                              Building and the Property damaged or destroyed by
                              any casualty or peril whether insured or
                              uninsured, and costs of restoration following a
                              taking by condemnation or eminent domain;

                  10.4.9.12.  costs associated with the clean-up, remediation
                              and removal of any hazardous wastes or substances
                              and any and all other costs of causing the
                              Property to comply with applicable environmental
                              laws and other applicable laws and codes;

                  10.4.9.13.  costs of compliance with the Americans with
                              Disabilities Act; and

                  10.4.9.14.  cost of rent insurance exceeding one year's
                              coverage, if obtained;.

      In addition to the foregoing, Landlord's Operating Expenses shall be
      reduced by each of the following before the calculation of Tenant's Share:
      (i) recoveries by Landlord from any third parties as a result of any act,
      omission, default or negligence of such parties, or as the result of a
      breach or default by such parties under the provisions of applicable
      agreements which have caused Landlord to incur such costs and expenses,
      and (ii) recoveries by Landlord from insurance policies. to the extent
      that the proceeds thereof reimburse Landlord for costs and expenses which
      have previously been included or which would otherwise be included in
      Landlord's Operating Expenses.

10.5. As soon as practicable after the close of the No Pass Through Period and
December 31 of each year thereafter, any portion of which is during the Term,
the Landlord shall furnish the Tenant with a notice setting forth:

      10.5.1.     Taxes billed, or if a bill has not then been received for the
                  entire period, the Landlord's reasonable projection of Taxes
                  to be billed, for the then current calendar year;

                                     - 14 -
<PAGE>

      10.5.2.     the amount of Base Year Taxes;

      10.5.3.     the amount, if any, by which item 10.5.1 above exceeds item
                  10.5.2 above; and

      10.5.4.     the Tenant's Share of item 10.5.3 above and supporting
                  calculations including a copy of the current year's tax bill.

10.6. As soon as practicable after December 31 of each year during the Term and
after the end of the Term, the Landlord shall furnish the Tenant with a notice
setting forth:

      10.6.1.     the actual amount of Taxes for the preceding calendar year in
                  excess of Base Year Taxes (or proportional amount thereof for
                  shorter periods during the Term);

      10.6.2.     the Landlord's previously projected amount of Taxes for the
                  preceding calendar year in excess of Base Year Taxes (or
                  proportional amount thereof for shorter periods during the
                  Term);

      10.6.3.     the difference obtained by subtracting item 10.6.2 above from
                  item 10.6.1 above; and

      10.6.4.     the Tenant's Share of item 10.6.3 above and supporting
                  calculations including a copy of the current year's tax bill.

10.7. As soon as practicable after the close of the No Pass Through Period and
December 31 of each year thereafter, any portion of which is during the Term,
the Landlord shall furnish the Tenant with a notice setting forth:

      10.7.1.     the Landlord's reasonable projection of annual Operational
                  Expenses for the current period (if any portion thereof is
                  during the Term);

      10.7.2.     the amount of the Base Year Operational Expenses;

      10.7.3.     the amount, if any, by which item 10.7.1 above exceeds item
                  10.7.2 above; and

      10.7.4.     the Tenant's Share of item 10.7.3 above and supporting
                  calculations including a copy of the reasonably detailed
                  back-up documentation.

10.8. As soon as practicable after December 31 of each year during the Term and
after the end of the Term, the Landlord shall furnish the Tenant with a notice
setting forth:

      10.8.1.     the actual amount of Operational Expenses for the preceding
                  calendar year in excess of Base Year Operational Expenses (or
                  proportional amount thereof for shorter periods during the
                  Term);

      10.8.2.     the Landlord's previously projected amount of Operational
                  Expenses for the preceding calendar year in excess of Base
                  Year Operational Expenses (or proportional amount thereof for
                  shorter periods during the Term);

      10.8.3.     the difference obtained by subtracting item 10.8.2 above from
                  item 10.8.1 above; and

      10.8.4.     the Tenant's Share of item 10.8.3 above and supporting
                  calculations including a copy of the reasonably detailed
                  back-up documentation.

10.9. As soon as practicable after incurring any Capital Expenditure, the
Landlord shall furnish the

                                     - 15 -
<PAGE>

Tenant with a notice setting forth:

      10.9.1.     a description of the Capital Expenditure and the subject
                  thereof;

      10.9.2.     the date the subject of the respective Capital Expenditure was
                  first placed into service and the period of useful life
                  selected by the Landlord in connection with the determination
                  of the Annual Amortized Capital Expenditure;

      10.9.3.     the amount of the Annual Amortized Capital Expenditure; and

      10.9.4.     the Tenant's Share of item 10.9.3 above and supporting
                  calculations including a copy of the reasonably detailed
                  back-up documentation.

10.10. From time to time after the Commencement Date, the Landlord may furnish
the Tenant with a notice setting forth its estimate of Tenant Electric Charges
per month. Unless the Tenant desires to question the Landlord's then most recent
estimate of Tenant Electric Charges exclusively in the manner set forth below,
the Landlord's then most recent estimate shall be binding and shall continue in
effect until any question raised by the Tenant is otherwise resolved in
accordance with this subsection 10.10 of the Agreement. If the Tenant desires to
question the Landlord's estimate of Tenant Electric Charges, the Tenant shall
give notice to the Landlord of its desire. Upon receipt of the Tenant's notice,
the Landlord shall obtain a reputable, independent electrical engineer's formal
written estimate and computation of the Tenant Electric Charges. The engineer's
estimate and computation of Tenant Electric Charges shall thereupon control for
a 12 month period commencing with the date as of which it is given effect as to
Tenant Electric Charges, and until the Landlord furnishes the Tenant with a
subsequent notice setting forth its estimate of Tenant Electric Charges per
month, except to the extent that the Landlord may increase them in proportion to
increases in Utilities Expenses during the same period. The bill of the
independent engineer shall be paid by Tenant if the engineer recomputes Tenant's
Electric Charges to the same or a higher amount, and by Landlord if Tenant's
Electrical Charges are recomputed by such engineer to a lower amount.

10.11. Within the one (1) year period after the Landlord gives any notice
enumerated in subsections 10.5 through 10.10 of this Agreement, the Tenant or
the Tenant's authorized agent or other professional, upon one week's prior
notice to the Landlord, may inspect the Landlord's books and records, as they
pertain to the particular expense or expenses in question, at the Landlord's
office regarding the subject of any such notice to verify the amount(s) and
calculation(s) thereof. After payment of the Tenant's Share in accordance with
the provisions of section 10 of this Agreement, no further audit shall be
conducted with respect to Operational Expenses, Taxes, Capital Expenditures,
Base Year Operational Expenses or Base Year Taxes except with respect to items
which may have been questioned within the one (1) year period. Tenant agrees
that no audit will be conducted by an auditor engagedsolely on a contingent fee
basis. If an audit is conducted, the Landlord shall have the right to verify
that the provisions of this prohibition have been satisfied.

10.12. The mere enumeration of an item within the definitions of Operational
Expenses and Capital Expenditures in subsections 10.2 and 10.3 of this
Agreement, respectively, shall not be deemed to create an obligation on the part
of the Landlord to provide such item unless the Landlord is affirmatively
required to provide such item elsewhere in this Agreement; provided, however, no
charges shall be passed through by Landlord for services not furnished to
Tenant. Landlord, at Tenant's expense, shall maintain any supplementary
facilities which are agreed to be installed by Landlord for Tenant including,
without limitation, supplementary heating, cooling or ventilation; electronic
locking devices; and kitchen facilities such as faucets, drains, pumps and
insta-hot lines.

10.13. Without limitation of Tenant's rights as enumerated above, it is agreed
that if at any time a dispute

                                     - 16 -
<PAGE>

shall arise as to any amount or sum of money to be paid by Tenant under the
provisions of this Lease hereof. Tenant 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 Tenant to institute suit for
the recovery of such sum, and if it shall be adjudged that there was no legal
obligation on the part of Tenant to pay such sum or any part thereof, then
Tenant shall be entitled to recover such sum or so much thereof as it was not
legally required to pay under the provisions of the Lease.

11. Leasehold Improvements, Fixtures and Trade Fixtures.

All leasehold improvements to the Leased Premises, fixtures installed in the
Leased Premises and the blinds and floor treatments or coverings shall be the
property of the Landlord at the expiration or other termination of the Term,
regardless of when, by which party or at which party's cost the item is
installed. Movable furniture, furnishings, trade fixtures and equipment of the
Tenant which are in the Leased Premises shall be the property of the Tenant.

12. Alterations, Improvements and Other Modifications by the Tenant.

12.1. The Tenant shall not make any alterations, improvements or other
modifications to the Leased Premises which effect structural changes in the
Building or any portion thereof, diminish the functional utility or rental value
of the Leased Premises or, except as may be contemplated by section 5 of this
Agreement prior to the Commencement Date, affect in any material way the
mechanical, electrical, plumbing or other systems installed in the Building or
the Leased Premises.

12.2. The Tenant shall not make any alterations, improvements or modifications
to the Leased Premises, the Building or the Property or make any boring in the
ceiling, walls or floor of the Leased Premises or the Building (other than as
contemplated by this Lease, on the Tenant Plan as approved by the Landlord or in
the ordinary course of outfitting a business office) unless the Tenant shall
have first:

      12.2.1.     furnished to the Landlord detailed, New Jersey
                  architect-certified construction drawings, construction
                  specifications and, if they pertain in any way to
                  modifications to the heating, ventilation and air conditioning
                  or other systems of the Building, related engineering design
                  work and specifications regarding, the proposed alterations,
                  improvements or other modifications;

      12.2.2.     not received a notice from the Landlord reasonably objecting
                  thereto in any respect within ten (10) days of the furnishing
                  thereof (which shall not be deemed the Landlord's affirmative
                  consent for any purpose). Landlord may also notify Tenant
                  within the same period, but not thereafter, that, at the
                  expiration or earlier termination of the Term, Landlord will
                  require Tenant to remove any alteration which would require
                  Landlord to incur any unusual expense, delay or inconvenience
                  (specifying the items which must be removed and the reason for
                  Landlord's determination);

      12.2.3.     obtained any necessary or appropriate building permits or
                  other approvals from the Municipality and, if such permits or
                  other approvals are conditional, satisfied all conditions to
                  the satisfaction of the Municipality; and

      12.2.4.     met, and continued to meet, all the following conditions with
                  regard to any contractors selected by the Tenant and any
                  subcontractors, including materialmen, in turn selected by any
                  of them:

                  12.2.4.1.   the Tenant shall have sole responsibility for
                              payment of, and shall pay, such contractors;

                                     - 17 -
<PAGE>

                  12.2.4.2.   the Tenant shall have sole responsibility for
                              coordinating, and shall coordinate, the work to be
                              supplied or performed by such contractors, both
                              among themselves and with any contractors selected
                              by the Landlord;

                  12.2.4.3.   the Tenant shall not permit or suffer the filing
                              of any notice of construction lien claim or other
                              lien or prospective lien by any such contractor or
                              subcontractor with respect to the Property, the
                              Common Facilities, the Building or any other
                              improvements on the Property; and if any of the
                              foregoing should be filed by any such contractor
                              or subcontractor, the Tenant shall, within thirty
                              (30) days after notice of the lien, obtain and
                              file the complete discharge and release thereof or
                              provide such payment bond(s) from a reputable,
                              financially sound institutional surety as will, in
                              the reasonable opinions of the Landlord, the
                              holders of any mortgage indebtedness on, or other
                              interest in, the Property, the Building, the
                              Common Facilities or any other improvements on the
                              Property, or any portions thereof, and their
                              respective title insurers, be adequate to assure
                              the complete discharge and release thereof;

                  12.2.4.4.   in connection with any contracts providing for an
                              expenditure by Tenant in excess of $25,000, or in
                              the instance of any work reasonably determined by
                              Landlord to be ultrahazardous, prior to any such
                              contractor's entering upon the Property, the
                              Building or the Leased Premises or commencing work
                              the Tenant shall have delivered to the Landlord
                              (a) all the Tenant's certificates of insurance set
                              forth in section 14 of this Agreement, conforming
                              in all respects to the requirements of section 14
                              of this Agreement, except that the effective dates
                              of all such insurance policies shall be prior to
                              any such contractor's entering upon the Property,
                              the Building or the Leased Premises or commencing
                              work (if any work is scheduled to begin before the
                              Commencement Date) and (b) similar certificates of
                              insurance from each of the Tenant's contractors
                              providing for coverage in equivalent amounts,
                              together with their respective certificates of
                              workers' compensation insurance, employer's
                              liability insurance and products-completed
                              operations insurance, the latter providing
                              coverage in at least the amount required for the
                              Tenant's comprehensive general public liability
                              and excess insurance;

                  12.2.4.5.   each such contractor shall be a party to
                              collective bargaining agreements with those unions
                              that are certified as the collective bargaining
                              agents of all bargaining units of such contractor,
                              of which all such contractor's workpersons shall
                              be members in good standing;

                  12.2.4.6.   each such contractor shall perform its work in a
                              good and workpersonlike manner and shall not
                              interfere with or hinder the Landlord or any other
                              contractor in any manner;

                  12.2.4.7.   there shall be no labor dispute of any nature
                              whatsoever involving any such contractor or any
                              workpersons of such contractor or the unions of
                              which they are members with anyone; and if such a
                              labor dispute exists or comes into existence the
                              Tenant shall forthwith, at the Tenant's sole cost
                              and expense, remove all such contractors and their
                              workpersons from the Building, the Common
                              Facilities and the Property; and

                  12.2.4.8.   the Tenant shall have the sole responsibility for
                              the security of the Leased

                                     - 18 -
<PAGE>

                              Premises and all contractors' materials, equipment
                              and work, regardless of whether their work is in
                              progress or completed.

12.3. After the Commencement Date, the Tenant shall not apply any wall covering
(except latex based flat paint) or other treatment to the walls of the Leased
Premises without the prior written consent of the Landlord, which consent shall
not be unreasonably withheld or delayed and shall be deemed given if Landlord
shall fail to respond to Tenant's request (either consenting or reasonably
withholding consent with explanatory comment) within ten (10) days next
following Tenant's request. It shall be reasonable for Landlord to withhold
consent if the wall covering is flammable or if Landlord is likely to incur
unusual expense or delay in removing the same.

13. Landlord's Rights of Entry and Access.

The Landlord and its authorized agents shall have the following rights of entry
and access to the Leased Premises:

13.1. In case of any emergency or threatened emergency, at any time for any
purpose which the Landlord reasonably believes under such circumstances will
serve to prevent, eliminate or reduce the emergency, or the threat thereof, or
damage or threatened damage to persons and property.

13.2. Upon at least five (5) day's prior verbal advice to the Tenant's
authorized representative (who shall be designated from time to time by Tenant
in writing) during normal business hours, for the purpose of erecting or
constructing improvements, modifications, alterations and other changes to the
Building or any portion thereof, , whether for the benefit of the Landlord, the
Building, all tenants of Other Leased Premises in the Building, or one or more
tenants of Other Leased Premises, or others including, without limiting the
generality of the foregoing, the Leased Premises, the Common Facilities or the
Property (provided, however, that no access in or through the Leased Premises
shall be requested or granted for the performance of work outside of the Leased
Premises unless such work shall benefit the Leased Premises, or unless there are
no other commercially reasonable means of undertaking and completing such work);
or, upon at least one (1) day's prior verbal advice to the Tenant's authorized
representative (who shall be designated from time to time by Tenant in writing)
during normal business hours,for the purpose of repairing or maintaining the
Leased Premises; and without prior notice for the purpose of cleaning the Leased
Premises. If the entry is for the purpose of repairing or maintaining the Leased
Premises, Tenant's authorized representative may defer Landlord's entry for up
to two (2) days at the time the one (1) day notice is given. In connection with
any such improvements, modifications, alterations, other changes, repairs,
maintenance or cleaning, the Landlord may close off such portions of the
Property, the Building and the Common Facilities and interrupt such services as
may be necessary to accomplish such work, without liability to the Tenant
therefor and without such closing or interruption being deemed an eviction or
constructive eviction or requiring an abatement of Rent. However, in
accomplishing any such work, the Landlord shall endeavor not to materially
interfere with the Tenant's use and enjoyment of any portion of the Leased
Premises or the conduct of the Tenant's business and to minimize interference,
inconvenience and annoyance to the Tenant and in the event Tenant's use shall be
interrupted or materially impaired for any period in excess of twenty-four (24)
hours, then Rent shall equitably abate until such interruption or impairment
shall be fully terminated.

13.3. Upon not less than five (5) days prior verbal notice, during normal
business hours and at a time mutually convenient for Landlord and Tenant, for
the purpose of operating, inspecting or examining the Building, including the
Leased Premises, or the Property.

13.4. At any time after the Tenant has vacated the Leased Premises, for the
purpose of preparing the Leased Premises for another tenant or prospective
tenant.

                                     - 19 -
<PAGE>

13.5. If practicable by appointment with the Tenant, at all reasonable hours for
the purpose of showing the Building to prospective purchasers, mortgagees and
prospective mortgagees and prospective ground lessees and lessors.

13.6. If practicable by appointment with the Tenant, at all reasonable hours
during the last nine months of the Term for the purpose of showing the Leased
Premises to prospective tenants thereof.

13.7. The mere enumeration of any right of the Landlord within this section 13
of the Agreement shall not be deemed to create an obligation on the part of the
Landlord to exercise any such right unless the Landlord is affirmatively
required to exercise such right elsewhere in this Agreement.

14. Liabilities and Insurance Obligations.

14.1. The Tenant shall, at the Tenant's own expense, purchase before the
Commencement Date, and maintain in full force and effect throughout the Term and
any other period during which the Tenant may have possession of the Leased
Premises, the following types of insurance coverage from financially sound and
reputable insurers, licensed by or lawfully doing business in the State of New
Jersey to provide such insurance and acceptable to the Landlord, in the minimum
amounts set forth below, each of which insurance policies shall be for the
benefit of Tenant, and shall name the Landlord, the Landlord's managing agent
and mortgagees and ground lessors known to the Tenant, if any, of the Building,
the Common Facilities, the Property or any interest therein, their successors
and assigns as additional persons insured, and none of which insurance policies
shall contain a "co-insurance" clause:

      14.1.1.     commercial general liability insurance (including "broad form
                  and contractual liability" coverage) and excess ("umbrella")
                  insurance which, without limiting the generality of the
                  foregoing, considered together shall insure against such risks
                  as bodily injury, death and property damage, with a combined
                  single limit of not less than $3,000,000.00 for each
                  occurrence; and

      14.1.2.     "all-risks" property insurance covering the Leased Premises in
                  an amount sufficient, as reasonably determined by the Landlord
                  from time to time, to cover the replacement costs for all
                  Tenant's alterations, improvements, fixtures and personal
                  property located in or on the Leased Premises; provided,
                  however that Tenant shall have the right to self-insure the
                  risks set forth in this Section 14.1.2. If Tenant shall
                  serlf-insure, Tenant shall indemnify Landlord against any
                  claims for which Landlord would have been protected had the
                  Tenant secured such insurance (including the effect of the
                  waiver of subrogation contained in such policy).

14.2. With respect to risks:

      14.2.1.     as to which this Agreement requires either party to maintain
                  insurance, or

      14.2.2.     as to which either party is effectively insured and for which
                  risks the other party may be liable,

      14.2.3.     the party required to maintain such insurance and the party
                  effectively insured shall use its best efforts to obtain a
                  clause, if available from the respective insurer, in each such
                  insurance policy expressly waiving any right of recovery, by
                  reason of subrogation to such party's rights or otherwise, the
                  respective insurer might otherwise have or obtain against the
                  other party, so long as such a clause can be obtained in the
                  respective insurance policy without additional premium cost.
                  If such a clause can be obtained in the respective insurance
                  policy, but only at additional premium cost, such party shall,
                  by notice to the

                                     - 20 -
<PAGE>

                  other party, promptly advise the other party of such fact and
                  the amount of the additional premium cost. If the other party
                  desires the inclusion of such a clause in the notifying
                  party's respective insurance policy, the other party shall,
                  within 10 days of receipt of the notifying party's notice, by
                  notice advise the notifying party of its desire and enclose
                  therewith its check in the full amount of the additional
                  premium cost; otherwise the notifying party need not obtain
                  such a clause in the respective insurance.

14.3. Each party hereby waives any right of recovery against the other party for
any and all damages for property losses and property damages which are actually
insured by either party (or which are self-insured as above provided), but only
to the extent:

      14.3.1.     that the waiver set forth in this subsection 14.3 does not
                  cause or result in any cancellation of, or diminution in, the
                  insurance coverage otherwise available under any applicable
                  insurance policy;

      14.3.2.     of the proceeds of any applicable insurance policy (without
                  adjustment for any deductible amount set forth therein)
                  recoverable by such party for such respective loss or damages
                  or which would have been recoverable had the party not
                  self-insured.

The waiver set forth in this subsection 14.3 of the Agreement shall not apply
with respect to liability insurance policies (as opposed to property and
casualty insurance policies).

14.4. The Tenant hereby waives any right of recovery it might otherwise have
against the Landlord for losses and damages caused actively or passively, in
whole or in part, by any of the risks the Tenant actually insures or which the
Tenant is required to insure against in accordance with subsections 14.1.1 or
14.1.2 of this Agreement, unless such waiver would cause or result in a
cancellation of, or diminution in, the coverage of the Tenant's policies of
insurance against such risks. The Landlord hereby waives any right of recovery
it might otherwise have against the Tenant for losses and damages caused
actively or passively, in whole or in part, by any of the risks the Landlord
actually insures, or which Landlord is required to insure against in accordance
with this Agreement, unless such waiver would cause or result in a cancellation
of, or diminution in, the coverage of the Landlord's policies of insurance
against such risks.

14.5. The Landlord shall have no liability whatsoever to the Tenant or the
Tenant's employees, other agents or Guests or anyone else for any death, bodily
injury, property loss or other damages suffered by any of them or any of their
property except to the extent caused by the gross negligence or intentional
misconduct of the Landlord or any party for whose conduct Landlord is legally
responsible..

14.6. Each policy of insurance required under subsection 14.1 of this Agreement
shall include provisions to the effect that:

      14.6.1.     no act or omission of the Tenant, its employees, other agents
                  or Guests shall result in a loss of insurance coverage
                  otherwise available under such policy to any person required
                  to be named as an additional insured in accordance with
                  subsection 14.1 of this Agreement; and

      14.6.2.     the insurance coverage afforded by such policy shall not be
                  diminished, cancelled, permitted to expire or otherwise
                  terminated for any reason except upon 30 days' prior written
                  notice from the insurer to every person named as an additional
                  insured in accordance with subsection 14.1 of this Agreement.

14.7. With respect to each type of insurance coverage referred to in subsection
14.1 of this Agreement, prior to the Commencement Date the Tenant shall cause
its insurer(s) to deliver to the Landlord the

                                     - 21 -
<PAGE>

certificate(s) of the insurer(s) setting forth the name and address of the
insurer, the name and address of each additional insured, the type of coverage
provided, the limits of the coverage, any deductible amounts, the effective
dates of coverage and that each policy under which coverage is provided
affirmatively includes provisions to the effect set forth in subsection 14.6 of
this Agreement. In the event any of such certificates indicates a coverage
termination date earlier than the end of the Term or the end of any other period
during which the Tenant may have possession of the Leased Premises, no later
than 10 days before any such coverage termination date, the Tenant shall deliver
to the Landlord respective, equivalent, new certificate(s) of the insurer(s).

15. Casualty Damage to Building or Leased Premises.

15.1. In the event of any damage to the Building or any portion thereof by fire
or other casualty, with the result that the Leased Premises are rendered
unusable, in whole or in part, then, subject to the rights of the parties to
terminate this Lease as hereinafter provided in subsection 15.1.1, the Landlord
shall, within twenty (20) business days of the casualty, determine the period of
time required to restore the Building and the Leased Premises (but not including
the improvements constructed or installed prior to the Term or during the Term
in excess of the original Allowance for the same) and notify Tenant of
Landlord's determination including the number of days which restoration is
estimated to take.

      15.1.1.     If, in Landlord's opinion, the restoration described above
                  will take more than 180 days from the date of the casualty to
                  complete then Landlord may elect to terminate this Agreement
                  effective as of the date of casualty. Notice of the Landlord's
                  election shall be served upon the Tenant within the twenty
                  (20) business day period described above. If Landlord does not
                  elect to terminate, Tenant may elect to terminate this Lease
                  by a written notice to Landlord sent within ten (10) days
                  after receipt of Landlord's determination of the time to
                  rebuild.

                  If, in Landlord's reasonable opinion the cost to repair the
                  damage exceeds the amount of insurance coverage by $500,000,
                  or more, which is not covered by insurance because of the
                  standard exclusions or limitations in the insurance which
                  Landlord carries, then Landlord also may elect to terminate
                  this Agreement effective as of the date of casualty. Notice of
                  the Landlord's election shall be served upon the Tenant within
                  the twenty (20) business day period described above.

      15.1.2.     If, in Landlord's opinion, the restoration described above
                  will take 180 days or less, or, if neither party terminates
                  this Agreement pursuant to the provisions of subsection
                  15.1.1, then Landlord shall restore the Building and the
                  Leased Premises as aforesaid. In either of such events, the
                  Landlord shall cause restoration to proceed diligently and
                  expediently to the extent the Landlord has received proceeds
                  of any property, casualty or liability insurance on the
                  damaged portions (or would have received such proceeds had it
                  obtained such coverage).

                  If Landlord proceeds with restoration but does not
                  substantially complete the same within the greater of (i) one
                  hundred eighty days from the date of the casualty; or (ii) the
                  number of days which Landlord specified in the notice given
                  pursuant to the provisions of subsection 15.1 of this
                  Agreement, then Tenant may serve a notice at any time
                  thereafter that this Agreement will terminate on a date
                  specified by Tenant in its notice, unless the restoration is
                  substantially completed within the thirty (30) day period
                  after service of such notice. For this purpose, the completion
                  of the portions of the Leased Premises which are being
                  restored shall be determined by the same criteria as
                  originally applied to completion of the Work. If this
                  Agreement terminates pursuant to this provision, Tenant shall
                  receive

                                     - 22 -
<PAGE>

                  a prompt refund of its Security Deposit and any prepaid rent.

15.2. Rent shall abate from the date of the casualty until:

      15.2.1.     such time as the Leased Premises are again fully usable and be
                  reduced during such period by the amount which bears the same
                  proportion to the Rent otherwise payable during such period as
                  the gross rentable floor space of the Leased Premises which
                  are rendered unusable bears to the gross rentable floor space
                  of the Leased Premises. The restoration of the improvements
                  constructed or installed prior to the Term or during the Term
                  in excess of the original Allowance for the same shall be the
                  Tenant's responsibility. Tenant shall make reasonable, good
                  faith efforts to integrate the restoration which is its
                  responsibility with the work which is being performed by
                  Landlord. To the extent that is not feasible, Tenant shall be
                  allowed an additional, reasonable interval to complete its
                  work, not to exceed sixty days and Rent shall abate during the
                  interval required for such restoration. The Landlord shall
                  cooperate with Tenant to integrate the restoration of such
                  improvements during the reconstruction period; or

      15.2.2.     this Agreement is canceled pursuant to the provisions of
                  subsections 15.1.

15.3. If either party terminates this Agreement pursuant to the provisions of
subsection 15.1.1 then Landlord, in such event, may proceed with restoration (or
non-restoration) in any manner it chooses, without any liability to Tenant.

15.4. The Tenant shall promptly advise the Landlord by the quickest means of
communication of the occurrence of any casualty damage to the Building or the
Leased Premises of which the Tenant becomes aware.

16. Condemnation.

If the Leased Premises, or any portion thereof, or the Building or the Common
Facilities, or any substantial portion of any of the foregoing, shall be
acquired for any public or quasi-public use or purpose by statute, right of
eminent domain or private sale in lieu thereof, with the result the Tenant can
not reasonably use and occupy the Leased Premises for the purpose set forth in
subsection 7.1 of this Agreement, then this Lease shall terminate (and all
rental obligations shall be adjusted) as of the date that possession must be
delivered to the condemning authority. The Tenant hereby waives any claim
against the Landlord and the condemning authority for any thing of value,
tangible or intangible, including, without limiting the generality of the
foregoing, the putative value of any leasehold interest or loss of the use of
same, except for any right the Tenant might have to make a claim, independent
of, and without reference to or having any effect on, any award or claim of the
Landlord, against the condemning authority or other acquiring party regarding
the value of the Tenant's installed trade fixtures and other installed equipment
which are not removable from the Leased Premises or for ordinary and necessary
moving expenses occasioned thereby.

17. Assignment or Subletting by Tenant.

17.1. Except as may be specifically set forth in this section 17 (including,
without limitation, subsection 17.6) of the Agreement, the Tenant shall not:

      17.1.1.     assign this Agreement or any of the Tenant's rights hereunder;

      17.1.2.     sublet the Leased Premises or any portion thereof;

                                     - 23 -
<PAGE>

      17.1.3.     license the use or occupancy of the Leased Premises or any
                  portion thereof;

      17.1.4.     otherwise transfer, or attempt to transfer any interest
                  including, without limiting the generality of the foregoing, a
                  mortgage, pledge or security interest, in this Agreement, the
                  Leased Premises or the right to the use and occupancy of the
                  Leased Premises; or

      17.1.5.     indirectly accomplish, or permit or suffer the accomplishment
                  of, any of the foregoing by merger or consolidation with
                  another entity, by acquisition or disposition of assets or
                  liabilities outside the ordinary course of the Tenant's
                  business or by acquisition or disposition, by the Tenant's
                  equity owners or subordinated creditors, of any of their
                  respective interests in the Tenant.

17.2. Except as may be specifically set forth in this section 17 (including,
without limitation, subsection 17.6) of the Agreement, the Tenant shall not
assign this Agreement or any of the Tenant's rights hereunder or sublet the
Leased Premises or any portion thereof without first giving seven (7) business
days' prior notice to the Landlord of its desire to assign or sublet and
requesting the Landlord's consent which consent shall not be unreasonably
withheld, delayed or conditioned. The Tenant's notice to the Landlord shall
include:

      17.2.1.     the full name, address and telephone number of the proposed
                  assignee or sublessee;

      17.2.2.     a description of the type(s) of business in which the proposed
                  assignee or sublessee is engaged and proposes to engage;

      17.2.3.     a description of the use to which the proposed assignee or
                  sublessee intends to put the Leased Premises or portion
                  thereof if not substantially the same as permitted in
                  subsection 7.1 and, if the use is not substantially the same,
                  any other information reasonably requested by the Landlord;

      17.2.4.     the proposed assignee's or subtenant's most recent quarterly
                  and annual financial statements prepared in accordance with
                  generally accepted accounting principles or any other evidence
                  of financial position and responsibility that the Tenant or
                  proposed assignee or sublessee may desire to submit;

      17.2.5.     by diagram and measurement of the actual square feet of floor
                  space, the precise portion of the Leased Premises proposed to
                  be sublet;

      17.2.6.     a complete, accurate and detailed description of the terms of
                  the proposed assignment or sublease including, without
                  limiting the generality of the foregoing, all consideration
                  paid or given, or proposed to be paid or to be given, by the
                  proposed assignee, sublessee or other person to the Tenant and
                  the respective times of payment or delivery; and

17.3. By the expiration of the seven (7) business day notice period provided in
subsection 17.2 of this Agreement, the Landlord, in its sole discretion, shall
take one of the following actions by notice to the Tenant:

      17.3.1.     grant consent on the terms and conditions set forth in
                  subsection 17.4 of this Agreement;

      17.3.2.     reasonably and in good faith decline to grant consent for any
                  of the reasons set forth in subsection 17.5 of this Agreement;
                  or

      17.3.3.     elect to terminate the Term as of (a) the end of the third
                  full month after the Tenant has

                                     - 24 -
<PAGE>

                  given notice of the Tenant's desire to assign or sublet or (b)
                  the proposed effective date of the proposed assignment or
                  sublease.

17.4. The Landlord's consent to the Tenant's proposed assignment or sublease, if
granted under subsection 17.3.1 of this Agreement, shall be subject to all the
following terms and conditions:

      17.4.1.     any proposed assignee or sublessee shall, by document executed
                  and delivered forthwith to the Landlord, agree to be bound by
                  all the obligations of the Tenant set forth in this Agreement;

      17.4.2.     the Tenant shall remain liable under this Agreement, jointly
                  and severally with any proposed assignee or sublessee, for the
                  timely performance of all obligations of the Tenant set forth
                  in this Agreement;

      17.4.3.     the Tenant shall forthwith deliver to the Landlord manually
                  executed copies of all documents regarding the proposed
                  assignment or sublease and a written, accurate and complete
                  description, manually executed both by the Tenant and the
                  proposed assignee or sublessee, of any other agreement,
                  arrangement or understanding between them regarding the same;

      17.4.4.     with respect to any consideration or other thing of value
                  received or to be received by the Tenant directly in
                  consideration for such assignment or sublease (other than
                  advance rent payments and security deposits and those amounts
                  payable in equal monthly installments each month during the
                  proposed term of any such assignment or sublease), the Tenant
                  shall pay to the Landlord one-half of any such amount and
                  one-half of the fair market value (in excess of Tenant's
                  basis) of any other thing of value within 10 days of receipt
                  of same after Tenant shall have fully recovered any brokerage
                  fees, attorneys fees, repair and improvement costs, fees
                  payable to Landlord pursuant to Section 17.4.6, below, and
                  other costs and expenses incurred by Tenant in connection with
                  such assignment or subletting;

      17.4.5.     with respect to any amount payable to the Tenant in equal
                  monthly installments each month during the proposed term of
                  any such assignment or sublease in connection with such
                  assignment or sublease, which amount is in excess of the
                  amount which bears the same ratio to the monthly installment
                  of Rent due from the Tenant as the usable floor space of the
                  Leased Premises subject to the assignment or sublease bears to
                  the usable floor space of the entire Leased Premises, the
                  Tenant shall pay one-half of such excess to the Landlord
                  together with the Tenant's monthly installment of Rent after
                  Tenant shall have fully recovered any brokerage fees,
                  attorneys fees, repair and improvement costs, fees payable to
                  Landlord pursuant to Section 17.4.6, below, and other costs
                  and expenses incurred by Tenant in connection with such
                  assignment or subletting; and

      17.4.6.     Tenant shall reimburse Landlord for the reasonable expenses
                  incurred in connection with the review of the proposed
                  assignment or sublease and the documentation related thereto,
                  not to exceed $500 per transaction.

17.5. The Landlord's refusal to grant consent under subsection 17.3.2 of this
Agreement shall not be deemed an unreasonable withholding of consent if based
upon any of the following reasons (or any other reason permitted by that
subsection):

      17.5.1.     the Landlord desires to take one of the other actions
                  enumerated in subsection 17.3 of this Agreement;

                                     - 25 -
<PAGE>

      17.5.2.     the proposed sublease is for a term which would expire after
                  the Term;

      17.5.3.     the general reputation, financial position or type of business
                  of, or the anticipated use of the Leased Premises by, the
                  proposed assignee or proposed sublessee is substantially
                  inconsistent with uses of those of tenants of Other Leased
                  Premises;

      17.5.4.     the proposed consideration to be paid to the Tenant during any
                  period of 12 months is less than sixty (60%) percent the
                  amount of the Market Rental Rate divided by the gross rentable
                  floor space of the Leased Premises and multiplied by that
                  portion of the gross rentable floor space of the Leased
                  Premises proposed to be subject to the proposed assignment or
                  sublease; or

      17.5.5.     the gross rentable floor space of the portion of the Leased
                  Premises proposed to be sublet is less than one-third of the
                  gross rentable floor space of the Leased Premises.

      17.5.6.     Tenant agrees that no advertisement offering any portion of
                  the Leased Premises for sublet or assignment shall state a
                  rental rate which is less than the Basic Rent, but it may
                  state "terms to be negotiated".

17.6. Anything in this section 17 to the contrary notwithstanding, and expressly
without triggering any advance notice requirement or Landlord termination or
recapture right, the Tenant shall have the right to assign this Agreement or
sublet the Leased Premises or portions thereof without the prior written consent
of the Landlord and without the application of subsections 17.1 and 17.2 of this
Agreement if one of the following is applicable:

      17.6.1      the assignee or sublessee is an Affiliate of the Tenant and
                  the Affiliate relationship was not created to avoid the
                  operation of this section of the Agreement; or

      17.6.2.     the proposed assignee or sublessee is an entity (a) resulting
                  from the merger or consolidation of the Tenant with or into
                  such entity or (b) purchasing substantially all the assets
                  (subject to substantially all the liabilities) of the Tenant
                  or (c) purchasing substantially all the issued and outstanding
                  capital stock or other equity interests of the Tenant.

An "Affiliate" of any entity means a person or entity controlling, controlled
by, or under common control with, that person or entity.

17.7. The provisions of section 17 of this Agreement shall not at any time
prohibit Tenant from permitting any Venture Partner (as hereinafter defined) to
share temporarily a portion of the Leased Premises in common with Tenant for the
limited purpose of working together on the matter which is the subject of
Tenant's agreement with such Venture Partner, provided that (i) such portion of
the Leased Premises which is subject to sharing of space shall be at all times
less than fifty (50%) percent of the Leased Premises, and (ii) Tenant notifies
Landlord in writing of the space sharing agreement with such Venture Partner.
"Venture Partner" shall mean any person or party with whom Tenant has made an
agreement to collaborate jointly in a business undertaking. The provisions of
this subsection 17.7 relating to space sharing with any Venture Partner shall
not be deemed at any time to relieve Tenant of its obligations under the Lease
with respect to any portion of the Leased Premises which is the subject of a
space sharing arrangement with any Venture Partner.

18. Signs, Displays and Advertising.

18.1. The Tenant shall have one sign identifying the Landlord's assigned number
for the Leased Premises at the principal entrance to the Leased Premises. The
Tenant may identify itself in or on each of:

                                     - 26 -
<PAGE>

the signs at the principal entrance to the Leased Premises, the Building
directory and the directory, if any, on the floor of the Building on which the
Leased Premises is located. All such signs, and the method and materials used in
mounting and dismounting them, shall be in accordance with the Landlord's
specifications. All such signs shall be provided and mounted by the Landlord at
the Landlord's expense, except that the Tenant shall bear any expense of
identifying itself on the sign at the principal entrance to the Leased Premises.
Landlord shall put the Tenant's name on the monument sign (or a new monument
sign installed by Landlord) in a size and style comparable to other names on
such sign.

18.2. No other sign, advertisement, fixture or display shall be used by the
Tenant on the Property or in the Building or the Common Facilities. Any signs
other than those specifically permitted under subsection 18.1 of this Agreement
shall be removed promptly by the Tenant or by the Landlord at the Tenant's
expense.

19. Quiet Enjoyment.

The Landlord is the owner of the Building, the Property and those Common
Facilities located on the Property. The Landlord has the right and authority to
enter into and execute and deliver this Agreement with the Tenant. So long as an
Event of Default shall not have occurred and be continuing after the delivery of
all required notices and the expiration of applicable cure periods, the Tenant
shall and may peaceably and quietly have, hold and enjoy the Leased Premises
during the Term in accordance with this Agreement free from hindrance or
molestation of or by Landlord or any person or party claiming by, through or
under Landlord subject to the provisions of section 25 of this Agreement.

20. Intentionally Omitted.

21. Surrender.

21.1 Upon expiration or earlier termination of the Term, or at any other time at
which the Landlord, by virtue of any provision of this Agreement has the right
to re-enter and re-take possession of the Leased Premises, the Tenant shall
surrender possession of the Leased Premises; remove from the Leased Premises all
property owned by the Tenant or anyone else other than the Landlord; remove from
the Leased Premises any alterations, improvements or other modifications to the
Leased Premises that the Landlord may request by notice; provided, however, that
Landlord may not require that Tenant remove any alterations, improvements or
other modifications to the Leased Premises unless the requirement that the same
be removed was contained in Landlord's notice to Tenant pursuant to subsection
12.2.2 of this Agreement as an express condition; make any repairs required by
such removal; clean the Leased Premises; leave the Leased Premises in as good
order and condition as it was upon the completion of any improvements
contemplated by section 5 of this Agreement, ordinary wear and use, damage by
fire or other casualty and Landlord's obligations excepted; return all copies of
all keys and passes to the Leased Premises, the Common Facilities and the
Building to the Landlord.

21.2 Within five (5) business days after the expiration or sooner termination of
the Term, Landlord may elect ("Election Right") by written notice to Tenant to:

      21.2.1      Retain any or all wiring, cables and similar installations
                  appurtenant thereto installed by Tenant in the risers,
                  ceilings, plenums and electrical closets of the Building
                  ("Wiring");

      21.2.2      Remove any or all such Wiring and restore the Premises and the
                  Building to the condition existing prior to the installation
                  of the Wiring ("Wire Restoration Work"). Landlord shall
                  perform such Wire Restoration Work at Tenant's sole cost and
                  expense based upon reasonable, documented third-party charges
                  therefor; or

                                     - 27 -
<PAGE>

      21.2.3      Require Tenant to perform the Wire Restoration Work at
                  Tenant's sole cost and expense. In such event, Tenant shall
                  submit the contract for the Wire Restoration Work to Landlord
                  for Landlord's prior approval.

21.3 The provisions of this Clause shall survive the expiration or sooner
termination of the Lease.

      21.4        In the event Landlord elects to retain the Wiring pursuant to
                  subsection 21.2.1 of this Agreement, Tenant covenants that
                  Tenant shall be the sole owner of such Wiring, that Tenant
                  shall have good right to surrender such Wiring, and that such
                  Wiring shall be free of all liens and encumbrances.

21.5. Notwithstanding anything to the contrary in section 29, Landlord may
retain Tenant's Security Deposit after the expiration or sooner termination of
the Lease until the earliest of the following events:

      21.5.1      Landlord elects to perform the Wiring Restoration Work
                  pursuant to subsection 21.2.2 of this Agreement and the Wiring
                  Restoration Work is complete and Tenant has fully reimbursed
                  Landlord for all costs related thereto; or

      21.5.2.     Landlord elects to require the Tenant to perform the Wiring
                  Restoration Work pursuant to subsection 21.2.3 of this
                  Agreement and the Wiring Restoration Work is complete and
                  Tenant has paid for all costs related thereto;

      21.5.3.     In the event Tenant fails or refuses to pay all costs of the
                  Wiring Restoration Work within ten (10) business days of
                  Tenant's receipt of Landlord's notice requesting Tenant's
                  reimbursement for or payment of such costs, Landlord may apply
                  all or any portion of Tenant's Security Deposit toward the
                  payment of such unpaid costs relative to the Wiring
                  Restoration Work.

      21.5.4.     The retention or application of such Security Deposit by
                  Landlord pursuant to this section 21 does not constitute a
                  limitation on or waiver of Landlord's right to pursue any
                  other or further remedies at law or in equity.

21.6. Anything in this Section 21 to the contrary notwithstanding, and without
limitation of Tenant's rights, Tenant shall have the right, but not the
obligation, to remove, or to pay for the removal of, Wiring: (i) that was a part
of Tenant's initial fit-out of the Leased Premises, or (ii) that was
subsequently installed by Tenant with Landlord's consent, which consent did not
stipulate that such Wiring would be required to be removed at the expiration or
earlier termination of the Term.

22. Events of Default.

The occurrence of any of the following events shall constitute an Event of
Default under this Agreement:

22.1. the Tenant's failure to pay any installment of Basic Rent or any amount of
Additional Rent within five (5) days next following written notice from Landlord
that the same is past due, provided that if Landlord sends such a notice of
delinquency twice in any consecutive twelve month period then thereafter,for the
next twelve month period, Tenant's failure to pay Rent within five (5) days of
the date it is due;

22.2. the Tenant's failure to complete performance of any of the Tenant's
obligations under this Agreement (other than the payment of Rent) within twenty
(20) days after the Landlord shall have given notice to the Tenant specifying
which of the Tenant's obligations has not been performed and in what respects,
unless completion of performance within such period of twenty (20) days is not
practicable using diligence and expedience, then within a reasonable time of the
Landlord's notice so long as the Tenant

                                     - 28 -
<PAGE>

shall have commenced substantial performance within such period of twenty (20)
days and shall have continued to provide substantial performance, diligently and
expediently, through to completion of performance;

22.3. the sale, transfer or other disposition of any interest of the Tenant in
the Leased Premises by way of execution or other legal process in contravention
of the terms of this Lease;

22.4. with the exception of those of the following events to which section 365
of the Bankruptcy Code shall apply in the context of an office lease (in which
case subsection 22.5 of this Agreement shall apply):

      22.4.1.     the Tenant's becoming a "debtor" under section 101 of the
                  Bankruptcy Code;

      22.4.2.     any time when either the value of the Tenant's liabilities
                  exceed the value of the Tenant's assets or the Tenant is
                  unable to pay its obligations as and when they respectively
                  become due in the ordinary course of business;

      22.4.3.     the appointment of a receiver or trustee of the Tenant's
                  property or affairs where such party shall not be dismissed or
                  discharged within a period of sixty (60) days; or

      22.4.4.     the Tenant's making an assignment for the benefit of, or an
                  arrangement with or among, creditors or filing a petition in
                  insolvency or for reorganization or for the appointment of a
                  receiver;

22.5. in the event of the occurrence of any of the events enumerated in
subsection 22.4 of this Agreement to which section 365 of the Bankruptcy Code
shall apply in the context of an office lease, the earlier of the bankruptcy
trustee's rejection or deemed rejection (as those terms are used in section 365
of the Bankruptcy Code) of this Agreement.

23. Rights and Remedies.

23.1. Upon the occurrence of an Event of Default the Landlord shall have all the
following rights and remedies:

      23.1.1.     to elect to terminate the Term by giving notice of such
                  election, and the effective date thereof, to the Tenant and to
                  receive Termination Damages;

      23.1.2.     to elect to re-enter and re-take possession of the Leased
                  Premises, without thereby terminating the Term, by giving
                  notice of such election, and the effective date thereof, to
                  the Tenant and to receive Re-Leasing Damages;

      23.1.3.     if the Tenant remains in possession of the Leased Premises
                  after the Tenant's obligation to surrender the Leased Premises
                  shall have arisen, to remove the Tenant and the Tenant's and
                  any others' possessions from the Leased Premises by any of the
                  following means without any liability to the Tenant therefor,
                  any such liability to the Tenant therefor which might
                  otherwise arise being hereby waived by the Tenant: legal
                  proceedings (summary or otherwise), writ of dispossession and
                  any other means and to receive Holdover Damages and, except in
                  the circumstances contemplated by section 20 of this
                  Agreement, to receive all expenses incurred in removing the
                  Tenant and the Tenant's and any others' possessions from the
                  Leased Premises, and of storing such possessions if the
                  Landlord so elects;

      23.1.4.     to be awarded specific performance, temporary restraints and
                  preliminary and permanent injunctive relief regarding Events
                  of Default where the Landlord's rights and remedies at

                                     - 29 -
<PAGE>

                  law are inadequate;

      23.1.5.     to receive all reasonable, documented expenses incurred in
                  securing, preserving, maintaining and operating the Leased
                  Premises during any period of vacancy, in making repairs to
                  the Leased Premises, in preparing the Leased Premises for
                  re-leasing and in re-leasing the Leased Premises including,
                  without limiting the generality of the foregoing, any
                  market-rate brokerage commissions;

      23.1.6.     to receive all reasonable legal expenses, including without
                  limiting the generality of the foregoing, attorneys' fees
                  incurred in connection with pursuing any of the Landlord's
                  rights and remedies, including indemnification rights and
                  remedies;

      23.1.7.     if the Landlord, in its sole discretion, elects to perform any
                  obligation of the Tenant under this Agreement (other than the
                  obligation to pay Rent) which the Tenant has not timely
                  performed, to receive all reasonable, documented expenses
                  incurred in so doing;

      23.1.8.     to elect to pursue any legal or equitable right and remedy
                  available to the Landlord under this Agreement or otherwise;
                  and

      23.1.9.     to elect any combination, or any sequential combination of any
                  of the rights and remedies set forth in subsection 23.1 of
                  this Agreement.

23.2. In the event the Landlord elects the right and remedy set forth in
subsection 23.1.1 of this Agreement, Termination Damages shall be equal to the
amount which, at the time of actual payment thereof to the Landlord, is the sum
of:

      23.2.1.     all accrued but unpaid Rent;

      23.2.2.     the present value (calculated using the most recently
                  available (at the time of calculation) published weekly
                  average yield on United States Treasury securities having
                  maturities comparable to the balance of the then remaining
                  Term) of the sum of all payments of Rent remaining due (at the
                  time of calculation) until the date the Term would have
                  expired (had there been no election to terminate it earlier)
                  less the present value (similarly calculated) of the fair
                  market rent for the Leased Premises through the end of the
                  Term (had there been no election to terminate it earlier) (and
                  it shall be assumed for purposes of such calculations that (i)
                  the amount of future Additional Rent due per year under this
                  Agreement will be equal to the average Additional Rent per
                  month due during the 12 full calendar months immediately
                  preceding the date of any such calculation, increasing
                  annually at a rate of three (3%) percent compounded, (ii) if
                  any calculation is made before the first anniversary of the
                  end of the No Pass Through Period, the average Additional Rent
                  due for any month after the end of the No Pass Through Period
                  will be equal to eight and fifty-eight hundredths (8.58%)
                  percent of the sum of the Base Year Operational Expenses, Base
                  Year Taxes and Tenant Electric Charges (considered on an
                  annual basis), (iii) if any calculation is made before the
                  beginning of the Base Year, the sum of Base Year Taxes and
                  Base Year Operational Expenses shall be assumed to be $8.00
                  per gross rentable square foot and (iv) if any calculation is
                  made before the end of the Base Year, Base Year Taxes and Base
                  Year Operational Expenses may be extrapolated based on the
                  year to date experience of the Landlord); and

      23.2.3.     the Landlord's reasonably estimated cost of demolishing any
                  leasehold improvements to the Leased Premises which the Tenant
                  was required to remove pursuant to the provisions of
                  subsection 21.1 of this Agreement.

                                     - 30 -
<PAGE>

23.3. In the event the Landlord elects the right and remedy set forth in
subsection 23.1.2 of this Agreement, Re-Leasing Damages shall be equal to the
Rent less any rent actually received (discounted on a reasonable basis if
received late) by the Landlord from any lessee of the Leased Premises or any
portion thereof, payable at the respective times that Rent is payable under the
Agreement plus the cost, if any, to the Landlord of building out or otherwise
preparing the Leased Premises for, and leasing the Leased Premises to, any such
lessee.

23.4. In the event the Landlord elects the right and remedy set forth in
subsection 23.1.3 of this Agreement, Holdover Damages shall mean damages at the
rate per month or part thereof equal to the greater of: (a) one and one-half
times one-twelfth of the then Market Rental Rate plus all Additional Rent as set
forth in this Agreement or (b) double the average amount of all payments of Rent
due under this Agreement during each of the last 12 full calendar months prior
to the Landlord's so electing or, in the event the Term shall have terminated by
expiration under subsection 24.1.1 of this Agreement, the last full 12 calendar
months of the Term, in either case payable in full on the first day of each
holdover month or part thereof.

23.5. In connection with any summary proceeding to dispossess and remove the
Tenant from the Leased Premises under subsection 23.1.3 of this Agreement, the
Tenant hereby waives:

      23.5.1.     any right the Tenant might otherwise have to cause a
                  termination of the action or proceeding by paying to the
                  Landlord or into court or otherwise any Rent in arrears;

      23.5.2.     any right the Tenant might otherwise have to a period of
                  waiting between issuance of any warrant in execution of any
                  judgment for possession obtained by the Landlord and the
                  execution thereof; and

      23.5.3.     any right the Tenant might otherwise have to redeem the
                  Tenant's former leasehold interest between the entry of any
                  judgment and the execution of any warrant issued in connection
                  therewith by paying to the Landlord or into Court or otherwise
                  any Rent in arrears.

23.6. The enumeration of rights and remedies in this section 23 of the Agreement
is not intended to be exhaustive or exclusive of any rights and remedies which
might otherwise be available to the Landlord, or to force an election of one or
more rights and remedies to the exclusion of others, concurrently, consecutively
or sequentially. On the contrary, each right and remedy enumerated in this
section 23 of the Agreement is intended to be cumulative with each other right
and remedy enumerated in this section 23 of the Agreement and with each other
right and remedy that might otherwise be available to the Landlord; and the
selection of one or more of such rights and remedies at any time shall not be
deemed to prevent resort to one or more others of such rights and remedies at
the same time or a subsequent time, even with regard to the same occurrence
sought to be remedied.

23.7. It is expressly understood and agreed that the Landlord's sole obligation
to mitigate damages shall be the appointment of an exclusive agent to market the
Leased Premises. In the event the Landlord elects the right and remedy set forth
in subsection 23.1.2 of this Agreement, Re-Leasing Damages shall be equal to the
Rent less any rent actually and timely received by the Landlord from any lessee
of the Leased Premises or any portion thereof, payable at the respective times
that Rent is payable under the Agreement plus the cost, if any, to the Landlord
of building out or otherwise preparing the Leased Premises for, and leasing the
Leased Premises to, any such lessee. The Landlord may relet some or all of the
Leased Premises but shall have no duty to lease the Leased Premises in
preference to other available space. The Tenant shall retain its rights to
sublet or assign the Leased Premises, or portions thereof, pursuant to Article
17 hereof except to the extent that the Landlord shall have already relet the
same which shall abrogate the Tenant's

                                     - 31 -
<PAGE>

rights, pro tanto.

23.8. If (i) an Event of Default has occurred and the Tenant moves out, whether
Landlord has terminated or otherwise, or (ii) if Tenant is dispossessed, and, in
either of such events, fails to remove any property, machinery, equipment and
fixtures or other property prior to such default, dispossess or removal, then
and in that event, the said property, machinery, equipment and fixtures or other
property shall be deemed, at the option of the Landlord, to be abandoned; or in
lieu thereof, at the Landlord's option, the Landlord may remove such property,
in cases in which removal of same is an express obligation of Tenant hereunder,
and charge the reasonable cost and expense of removal, storage and disposal to
the Tenant, together with an additional ten (10%) percent of such costs for
Landlord's overhead and profit, which total costs shall be deemed to be
additional rent hereunder. The Tenant shall be liable for any damage which it
causes in the removal of said property from the Leased Premises.

24. Intentionally Omitted.

25. Mortgage and Underlying Lease Priority.

25.1. This Agreement and the estate, interest and rights hereby created for the
benefit of the Tenant are, and shall always be, subordinate to any institutional
mortgage (other than a mortgage created by the Tenant or a sale, transfer or
other disposition by the Tenant in the nature of a security interest in
violation of subsections 17.1.4 and 22.3, respectively, of this Agreement)
already or afterwards placed on the Property, the Common Facilities, the
Building or any estate or interest therein including, without limiting the
generality of the foregoing, any new mortgage or any mortgage extension,
renewal, modification, consolidation, replacement, supplement or substitution.
This Agreement and the estate, interest and rights hereby created for the
benefit of the Tenant are, and shall always be, subordinate to any ground lease
already or afterwards made with regard to the Property, the Common Facilities,
the Building or any estate or interest therein including, without limiting the
generality of the foregoing, any new ground lease or any ground lease extension,
renewal, modification, consolidation, replacement, supplement or substitution.
The provisions of this section 25 of the Agreement shall be self-effecting; and
no further instrument shall be necessary to effect any such subordination.
Nevertheless, the Tenant hereby consents that any mortgagee or mortgagee's
successor in interest may, at any time and from time to time, by notice to the
Tenant, subordinate its mortgage to the estate and interest created by this
Agreement; and upon the giving of such notice, the subject mortgage shall be
deemed subordinate to the estate and interest created by this Agreement
regardless of the respective times of execution or delivery of either or of
recording the subject mortgage.

25.2. With respect to any mortgage which exists on the date of the execution of
this Agreement, Landlord shall use its best efforts to secure a non-disturbance
agreement in mortgagee's standard form which provides that Tenant's possession
will not be disturbed as long as Tenant is not in default after the delivery of
notice and the passage of all applicable cure periods under the terms of this
Agreement. With respect to any future mortgage, this Agreement shall only be
subordinate to the lien of the mortgage if it is an institutional mortgage and
if Landlord shall secure a non-disturbance agreement in mortgagee's standard
form which provides that Tenant's possession will not be disturbed as long as
Tenant is not in default after the delivery of notice and the passage of all
applicable cure periods under the terms of this Agreement.

26. Transfer by Landlord.

26.1. The Landlord shall have the right at any time and from time to time to
sell, transfer, lease or otherwise dispose of the Property, the Common
Facilities or the Building or any of the Landlord's interests therein at all
times subject to this Lease and Tenant's rights and privileges hereunder, or to
assign

                                     - 32 -
<PAGE>

this Agreement or any of the Landlord's rights thereunder.

26.2. Upon giving notice of the occurrence of any transaction contemplated by
subsection 26.1 of this Agreement, the Landlord shall thereby be relieved of any
obligation that might otherwise exist under this Agreement with respect to
periods subsequent to the effective date of any such transaction. If, in
connection with any transaction contemplated by subsection 26.1 of this
Agreement the Landlord transfers, to the assignee any Security Deposit of the
Tenant and gives notice of that fact to the Tenant, the Landlord shall thereby
be relieved of any further obligation to the Tenant with regard to any such
Security Deposit; and the Tenant shall look solely to the transferee with
respect to any such Security Deposit.

26.3. In the event of the occurrence of any transaction contemplated by
subsection 26.1 of this Agreement the Tenant, upon written request therefor from
the transferee, shall attorn to and become the tenant of such transferee upon
the terms and conditions set forth in this Agreement.

26.4. Notwithstanding anything to the contrary that may be set forth in
subsections 26.1, 26.2 and 26.3 of this Agreement, in the event any future
mortgage contemplated by subsection 25.2 of this Agreement is enforced by the
respective mortgagee pursuant to remedies provided in the mortgage or otherwise
provided by law or equity and any person succeeds to the interest of the
Landlord as a result of, or in connection with, any such enforcement, the Tenant
shall, upon the request of such successor in interest, automatically attorn to
and become the Tenant of such successor in interest without any change in the
terms or provisions of this Agreement (provided that Tenant shall receive the
non-disturbance protection contemplated by subsection 25.2 of this Agreement),
except that such successor in interest shall not be bound by: (a) any payment of
Basic Rent or Additional Rent (exclusive of prepayments in the nature of a
Security Deposit) for more than one month in advance or (b) any amendment or
other modification of this Agreement which was made without the consent of such
mortgagee or such successor in interest; and, upon the request of such successor
in interest, the Tenant shall execute, acknowledge and deliver any instrument(s)
confirming such attornment.

26.5. If this Agreement and the estate, interest and rights hereby created for
the benefit of the Tenant are ever subject and subordinate to any ground lease
contemplated by section 25 of this Agreement:

      26.5.1.     upon the expiration or earlier termination of the term of any
                  such ground lease before the termination of the Term under
                  this Agreement, the Tenant shall attorn to, and become the
                  Tenant of, the lessor under any such ground lease and
                  recognize such lessor as the Landlord under this Agreement for
                  the balance of the Term; provided that the lessor recognizes
                  Tenant as its direct tenant upon all of the same terms and
                  conditions as are provided in this Lease and

      26.5.2.     such expiration or earlier termination of the term of any such
                  ground lease shall have no effect on the Term under this
                  Agreement.

27. Indemnification.

27.1. Subject to the waiver and release provisions of subsections 14.4, 14.5 and
14.6 of this Agreement, the Tenant shall, and hereby does, indemnify the
Landlord against any and all liabilities, obligations, damages, penalties,
claims, costs, charges and expenses including, without limiting the generality
of the foregoing, expenses of investigation, defense and enforcement thereof or
of the obligation of Tenant set forth in this section 27 of the Agreement
including, without limiting the generality of the foregoing, attorneys' fees,
imposed on or incurred by the Landlord in connection with any of the following
matters which occurs during the Term; provided that, Tenant shall not be liable
for consequential damages in any event:

                                     - 33 -
<PAGE>

      27.1.1.     any matter, cause or thing arising out of the use, occupancy,
                  control or management of the Leased Premises or any portion
                  thereof which is not caused by the gross negligence or
                  intentional act of Landlord or any party for whom Landlord is
                  legally responsible;

      27.1.2.     any negligence or intentional act on the part of the Tenant or
                  any party for whose conduct Tenant is legally responsible;

      27.1.3.     any accident, injury or damage to any person or property
                  occurring in or about the Leased Premises which is not caused
                  by the gross negligence or intentional act of Landlord or any
                  party for whom Landlord is legally responsible;

      27.1.4.     any representation made by the Tenant in this Agreement shall
                  have been inaccurate or incomplete in any material respect
                  either on the date it was made or the date as of which it was
                  made;

      27.1.5.     the imposition of any mechanic's, materialman's or other lien
                  on the Property, the Common Facilities, the Building, the
                  Leased Premises or any portion of any of the foregoing, or the
                  filing of any notice of intention to obtain any such lien, in
                  connection with any alteration, improvement or other
                  modification of the Leased Premises made or authorized by the
                  Tenant (which indemnification obligation shall be deemed to
                  include the Tenant's obligations set forth in subsection
                  12.2.4.3 of this Agreement); or

      27.1.6.     any failure on the part of the Tenant to perform or comply
                  with any obligation of the Tenant set forth in this Agreement.

27.2. Payment of indemnification claims by the Tenant to the Landlord shall be
due upon the Landlord's giving notice thereof to the Tenant.

27.3. The Landlord shall promptly give notice of any claim asserted, or action
or proceeding commenced, against it as to which it intends to claim
indemnification from the Tenant and, upon notice from the Tenant so requesting,
shall forward to the Tenant copies of all claim or litigation documents received
by it. Upon receipt of such notice the Tenant may, by notice to the Landlord,
participate therein and, to the extent it may desire, assume the defense thereof
through independent counsel selected by the Tenant. The Landlord shall not be
bound by any compromise or settlement of any such claim, action or proceeding
without its prior written consent.

27.4. Subject to the waiver and release provisions of subsections 14.4, 14.5 and
14.6 of this Agreement, the Landlord shall, and hereby does, indemnify the
Tenant against any and all liabilities, obligations, damages, penalties, claims,
costs, charges and expenses including, without limiting the generality of the
foregoing, expenses of investigation, defense and enforcement thereof or of the
obligations of Landlord set forth in this Section 27 of the Agreement including,
without limiting the generality of the foregoing, attorneys' fees, imposed on or
incurred by the Tenant in connection with any of the following matters which
occurs during the Term; provided that, Landlord shall not be liable for
consequential damages in any event:

      27.4.1.     any matter, cause or thing arising out of the use, occupancy,
                  control or management of the the Property, the Building or the
                  Common Facilities or any portion thereof, which is not caused
                  by the gross negligence or intentional act of Tenant or any
                  party for whom Tenant is legally responsible;

      27.4.2      any negligence or intentional act on the part of the Landlord
                  or any party for whose conduct Landlord is legally
                  responsible;

                                     - 34 -
<PAGE>

      27.4.3.     any accident, injury or damage to any person or property
                  occurring in or about the Leased Premises, the Property, the
                  Building or the Common Facilities or any portion thereof which
                  is not caused by the gross negligence or intentional act of
                  Tenant or any party for whom Tenant is legally responsible;

      27.4.4.     any representation made by the Landlord in this Agreement
                  shall have been inaccurate or incomplete in any material
                  respect either on the date it was made or the date as of which
                  it was made;

      27.4.5.     any failure on the part of the Landlord to perform or comply
                  with any obligation of the Landlord set forth in this
                  Agreement.

27.5. The Tenant shall promptly give notice of any claim asserted, or action or
proceeding commenced, against it as to which it intends to claim indemnification
from the Landlord and, upon notice from the Landlord so requesting, shall
forward to the Landlord copies of all claim or litigation documents received by
it. Upon receipt of such notice the Landlord may, by notice to the Tenant,
participate therein and, to the extent it may desire, assume the defense thereof
through independent counsel selected by the Landlord. The Tenant shall not be
bound by any compromise or settlement of any such claim, action or proceeding
without its prior written consent.

28. Parties' Liability.

28.1. None of the following occurrences shall constitute a breach of this
Agreement by the Landlord, a termination of the Term, an active or constructive
eviction or, except as otherwise provided, an occurrence requiring an abatement
of Rent:

      28.1.1.     the inability of the Landlord to provide any utility or
                  service to be provided by the Landlord, as described in
                  section 8 of this Agreement which is due to causes beyond the
                  Landlord's control, or to necessary or advisable improvements,
                  maintenance, repairs or emergency, so long as the Landlord
                  uses reasonable efforts and diligence under the circumstances
                  to restore the interrupted service or utility;

      28.1.2.     any improvement, modification, alteration or other change made
                  to the Property, the Building or the Common Facilities by the
                  Landlord consistently with the Landlord's obligations set
                  forth in subsection 13.2 of this Agreement; and

      28.1.3.     any change in any Federal, state or local law or ordinance.

      28.1.4.     If any utility or service is interrupted and Landlord can
                  remove the cause of such interruption with commercially
                  reasonable measures and fails to do so for a period of
                  seventy-two (72) hours after verbal notice, or more, then Rent
                  shall abate until the utility or service in question is
                  restored.

28.2. Except for the commencement, duration or termination of the Term (other
than under the circumstances contemplated by subsection 15.1 of this Agreement),
the Tenant's obligation to make timely payments of Rent, the Tenant's obligation
to maintain certain insurance coverage in effect, the Tenant's failure to
perform any of its other obligations under this Agreement if such failure has
caused loss or damage that can not promptly be cured by subsequent act of the
Tenant, any period of time during which the Landlord or the Tenant is prevented
from performing any of its respective obligations under this Agreement because
of fire, any other casualty or catastrophe, strikes, lockouts, civil commotion,
acts of God or the public enemy, governmental prohibitions or preemptions,
embargoes or inability to obtain labor or material due to shortage, governmental
regulation or prohibition, shall be added to the time when

                                     - 35 -
<PAGE>

such performance is otherwise required under this Agreement.

28.3. In the event the Landlord is an individual, partnership, joint venture,
association or a participant in a joint tenancy or tenancy in common, the
Landlord, the partners, venturers, members and joint owners shall not have any
personal liability or obligation under or in connection with this Agreement or
the Tenant's use and occupancy of the Leased Premises; but recourse shall be
limited exclusively to the Landlord's interest in the Building, and the office
center property of which it may form a part, the rents issues and profits
thereof, and the sale and refinance proceeds therefrom.

28.4. If, at any time during the Term, the payment or collection of any Rent
otherwise due under this Agreement shall be limited, frozen or otherwise
subjected to a moratorium by applicable law, and such limitation, freeze or
other moratorium shall subsequently be lifted, whether before or after the
termination of the Term, such aggregate amount of Rent as shall not have been
paid or collected during the Term on account of any such limitation, freeze or
other moratorium, shall thereupon be due and payable at once. There shall be
added to the maximum period of any otherwise applicable statute of limitation
the entire period during which any such limitation, freeze or other moratorium
shall have been in effect.

28.5. If this Agreement is executed by more than one person as Tenant, their
liability under this Agreement and in connection with the use and occupancy of
the Leased Premises shall be joint and several.

28.6. In the event any rate of interest, or other charge in the nature of
interest, calculated as set forth in this Agreement would lead to the imposition
of a rate of interest in excess of the maximum rate permitted by applicable
usury law, only the maximum rate permitted shall be charged and collected.

28.7. The rule of construction that any ambiguities that may be contained in any
contract shall be construed against the party drafting the contract shall be
inapplicable in construing this Agreement.

29. Security Deposit.

29.1. The Tenant shall pay to the Landlord upon execution and delivery of this
Agreement the sum of $78,370.84 as a security deposit to be held by the Landlord
as security for the Tenant's performance of all the Tenant's obligations under
this Agreement (the "Security Deposit"). The Landlord may commingle the Security
Deposit with its general funds. Any interest earned on the Security Deposit
shall belong to the Landlord. The Tenant shall not encumber the Security
Deposit. The Landlord, in its sole discretion, may apply the Security Deposit to
cure any Event of Default under this Agreement. If any such application is made,
upon notice by the Landlord to the Tenant, the Tenant shall promptly replace the
amount so applied. If there has been no Event of Default, within 30 days after
termination of the Term the Landlord shall return the entire balance of the
Security Deposit to the Tenant or so much thereof as Landlord shall not have
previously applied to the cure of an Event of Default as hereinabove provided.
The Tenant will not look to any foreclosing mortgagee of the Property, the
Building, the Common Facilities or any interest therein for such return of the
balance of the Security Deposit, unless the mortgagee has expressly assumed the
Landlord's obligations under this Agreement or has actually received the balance
of the Security Deposit.

29.2. In the alternative as Tenant may elect:

      29.2.1.     upon execution of this Lease, the Tenant shall post with
                  Landlord as security for the full and faithful performance of
                  this Lease upon the part of the Tenant to be performed an
                  irrevocable, unconditional Letter of Credit in transferable
                  form (together with all increases, renewals, replacements,
                  amendments and substitutions, the "Letter of Credit") naming
                  Landlord as beneficiary, with a term of at least one (1) year
                  in the amount of $78,370.84

                                     - 36 -
<PAGE>

                  from an institution acceptable to Landlord in the reasonable
                  exercise of its discretion (a "Qualified Bank"), presentable
                  in New Jersey. First Union National Bank or PNC Bank each
                  shall be considered a Qualified Bank. In no instance shall the
                  amount of such security be considered a measure of liquidated
                  damages. Tenant shall cause the Letter of Credit to be renewed
                  for additional one year periods for the entire term of the
                  Lease, and at least 15 days prior to the scheduled expiration
                  of the Letter of Credit each year, Tenant shall provide
                  Landlord with an extension of the Letter of Credit or
                  replacement Letter of Credit from a Qualified Bank. If Tenant
                  fails to provide such extension or replacement Letter of
                  Credit within the time period provided above, Landlord shall
                  have the right to draw immediately upon the entire balance of
                  the Letter of Credit and shall hold or disburse same in
                  accordance with the provisions of this section.

      29.2.2.     Upon termination of this Lease, and provided Tenant is not in
                  default hereunder following the delivery of notice and the
                  expiration of all applicable cure periods , the Landlord shall
                  return the Letter of Credit to the Tenant. During the term of
                  this Lease, Landlord shall have recourse to said security to
                  make good any default by Tenant following the delivery of
                  notice and the expiration of all applicable cure periods, in
                  which event Tenant shall, on demand, promptly restore said
                  Letter of Credit to its original amount. It is agreed that
                  should Landlord convey its interest under this Lease, the
                  security deposit may be turned over by Landlord to Landlord's
                  grantee or transferee, and Tenant shall cooperate with
                  Landlord by causing an appropriate amendment to the Letter of
                  Credit to be issued changing the name of the beneficiary. Upon
                  any such delivery of an amendment to the Letter of Credit,
                  provided that Tenant shall have written notice of the transfer
                  and accurate and current contact information regarding the
                  transferee, Tenant hereby releases Landlord herein named of
                  any and all liability with respect to the security deposit,
                  its application and return, and Tenant agrees to look solely
                  to such grantee or transferee, and it is further understood
                  that this provision shall also apply to subsequent grantees
                  and transferees. Tenant shall not mortgage, encumber or assign
                  said security.

30. Representations.

The Tenant hereby represents and warrants that:

30.1. its Standard Industrial Classification (SIC) code is 2836 and it will
promptly give notice of any change therein during the Term to the Landlord;

30.2. no broker or other agent has shown the Leased Premises or the Building to
the Tenant, or brought either to the Tenant's attention, except Julien J.
Studley, Inc. (the "Broker"), whose entire commission therefor is set forth in a
separate document and which commission the Tenant understands will be paid by
the Landlord directly to the Broker;

30.3. the execution and delivery of, the consummation of the transactions
contemplated by and the performance of all its obligations under, this Agreement
by the Tenant have been duly and validly authorized by its general partners, to
the extent required by their partnership agreement and applicable law, if the
Tenant is a partnership or, if the Tenant is a corporation, by its board of
directors and, if necessary, by its stockholders at meetings duly called and
held on proper notice for that purpose at which there were respective quorums
present and voting throughout; and no other approval, partnership, corporate,
governmental or otherwise, is required to authorize any of the foregoing or to
give effect to the Tenant's execution and delivery of this Agreement; and

30.4. the execution and delivery of, the consummation of the transactions
contemplated by and the

                                     - 37 -
<PAGE>

performance of all its obligations under, this Agreement by the Tenant will not
result in a breach or violation of, or constitute a default under, the
provisions of any statute, charter, certificate of incorporation or bylaws or
partnership agreement of the Tenant or any affiliate of the Tenant, as presently
in effect, or any indenture, mortgage, lease, deed of trust, other agreement,
instrument, franchise, permit, license, decree, order, notice, judgment, rule or
order to or of which the Tenant or any affiliate of the Tenant is a party, a
subject or a recipient or by which the Tenant, any affiliate of the Tenant or
any of their respective properties and other assets is bound.

31. Reservation in Favor of Tenant.

Neither the Landlord's forwarding a copy of this document to any prospective
tenant nor any other act on the part of the Landlord prior to execution and
delivery of this Agreement by the Landlord shall give rise to any implication
that any prospective tenant has a reservation, an option to lease or an
outstanding offer to lease any premises.

32. Tenant's Certificates and Mortgagee Notice Requirements.

32.1. Promptly upon request of the Landlord at any time or from time to time,
but in no event more than twenty (20) days after the Landlord's respective
request (which request shall be made no more often than two (2) times in any
twelve (12) month period), the Tenant shall execute, acknowledge and deliver to
the Landlord or its designee an estoppel or other certificate, reasonably
satisfactory in form and substance to the Landlord and any of its mortgagees,
ground lessors or lessees or transferees or prospective mortgagees, ground
lessors or lessees or transferees, with respect to any of or all the following
matters:

      32.1.1.     whether this Agreement is then in full force and effect;

      32.1.2.     whether this Agreement has not been amended, modified,
                  superseded, canceled, repudiated or revoked;

      32.1.3.     whether the Landlord has satisfactorily completed all
                  construction work, if any, required of the Landlord or
                  contractors selected and retained by the Landlord in
                  connection with readying the Leased Premises for occupancy by
                  the Tenant in accordance with section 5 of this Agreement;

      32.1.4.     whether the Tenant is then in actual possession of the Leased
                  Premises;

      32.1.5.     to the best of Tenant's knowledge after reasonable inquiry,
                  whether the Tenant then has no defenses or counterclaims under
                  this Agreement or otherwise against the Landlord or with
                  respect to the Leased Premises;

      32.1.6.     to the best of Tenant's knowledge after reasonable inquiry,
                  whether Landlord is not then in breach of this Agreement in
                  any respect;

      32.1.7.     whether the Tenant then has knowledge of any assignment of
                  this Agreement, the pledging or granting of any security
                  interest in this Agreement or in Rent due and to become due
                  under this Agreement;

      32.1.8.     whether Rent is not then accruing under this Agreement in
                  accordance with its terms;

      32.1.9.     whether any Rent is not then in arrears;

      32.1.10.    whether Rent due or to become due under this Agreement has not
                  been prepaid by

                                     - 38 -
<PAGE>

                  more than one month;

      32.1.11.    if the response to any of the foregoing matters is in the
                  negative, a specification of all the precise reasons that
                  necessitated the negative response in each instance; and

      32.1.12.    such information as the Landlord reasonably may request (and
                  which Tenant can reasonably furnish without independent
                  inquiry or investigation) for purposes of assuring compliance
                  with the Industrial Site Recovery Act (13 N.J.S.A. 1K-6 et
                  seq.), as it may be amended, and any other applicable Federal,
                  state or local statute, ordinance, rule, regulation or order
                  concerned with environmental matters.

32.2. If the Lease has been assigned to an assignee which is not a publicly
reporting company, and in connection with the Landlord's or a prospective
transferee's obtaining financing or refinancing of the Property, the Building,
the Common Facilities, any portion thereof or any interest therein, the Landlord
or a prospective lender shall so request, the Tenant shall furnish to the
requesting party within twenty (20) days of request summary financial
information regarding assignee's financial position as of the close of its most
recently completed fiscal year and its most recently completed interim fiscal
period and regarding its results of operations for the periods then ended and
comparable year earlier periods, certified by Tenant's chief financial officer
to be a complete, accurate and fair presentation of the summary financial
information purporting to be set forth therein.

32.3. If the Landlord or any of its mortgagees gives written notice to the
Tenant of any of their respective names and addresses from time to time, the
Tenant shall endeavor to give notice to each such mortgagee of any notice of
breach or default previously or afterwards given by the Tenant to the Landlord
under this Agreement and provide in such notice that if the Landlord has not
cured such breach or default within any permissible cure period then such
mortgagee shall have the greater of (a) an additional period of 30 days or (b)
if such default cannot practically be cured within such period, such additional
period as is reasonable under the circumstances, within which to cure such
default; provided, however that the foregoing agreement to furnish notice shall
not impair, limit or delay in any manner Tenant's exercise of any abatement,
self-help or offset rights as may be expressly provided in this Lease. Upon
request of the Landlord at any time or from time to time, the Tenant shall
execute, acknowledge and deliver to the Landlord or its designee an
acknowledgment of receipt of any such notice, an acknowledgment of receipt of
any notice of assignment of this Agreement or rights hereunder by the Landlord
to any of its mortgagees and the Tenant's agreement to the foregoing effect on
the respective forms, if any, furnished by the Landlord or the respective
mortgagees.

32.4. Approximately 30 days prior to the termination of the Term, the Tenant
shall apply to the New Jersey Department of Environmental Protection ("NJDEP"),
to obtain the Department's unconditional certificate of non-applicability or
approval of the Tenant's negative declaration or clean-up plan, together with
copies of all documents furnished to NJDEP in connection with obtaining such
certificate or approval, and deliver the same to Landlord upon receipt of the
same.

32.5. In the event evidence of compliance with ISRA is not delivered to the
Landlord prior to expiration or earlier termination of the Term (i) because
Tenant fails timely to apply for the same or (ii) because of some other action
for which Tenant is responsible, Tenant shall be liable for all actual,
third-party costs and expenses incurred by Landlord in enforcing Tenant's
obligations hereunder until such time as evidence of compliance with ISRA has
been delivered to the Landlord, and together with any costs and expenses,
including reasonable legal and environmental consultant fees incurred by
Landlord in enforcing Tenant's obligations under subsection 7.2.8 and subsection
32.4 of this Agreement. After the Term, Tenant shall nevertheless be obligated
to comply with its obligations hereunder. Evidence of compliance, as used
herein, shall mean an approved "negative declaration" or a "no further action
letter" issued by the

                                     - 39 -
<PAGE>

NJDEP. Evidence of compliance shall be delivered to the Landlord, together with
copies of all submissions made to, and received from, the NJDEP, including all
environmental reports, test results and other supporting documentation. In
addition, if a Release is caused or permitted by Tenant, or parties for whom
Tenant is legally responsible, during the Term then, after end of the Term, and
because of the difficulty which the Landlord may experience in re-letting the
Leased Premises, the Tenant shall remain liable for the payment of the annual
rent in effect in the last month of the Term, prorated on a monthly basis (the
"Post-Term Rent"). The Post-Term Rent shall no longer be due when and if the
only remaining requirement is purely administrative action on the part of the
NJDEP or from and after the commencement date of a lease of the Leased Premises
to a third party. Additionally, if Tenant fails to commence the process required
by subsection 32.4 of this Agreement at least 30 days prior to the expiration of
the Term then the Post-Term Rent shall be equal to 150% of the annual rent in
effect in the last month of the Term, prorated on a monthly basis. Such
Post-Term Rent shall no longer be due when the only remaining requirement is
purely administrative action on the part of the NJDEP, evidence of compliance is
obtained from the NJDEP or from and after the commencement date of a lease of
the Leased Premises to a third party.

      Notwithstanding the provisions of the preceding paragraph, Tenant shall
have no liability for Post-Term Rent if (i) Tenant delivers to Landlord an
unconditional certificate of non-applicability within ninety (90) days after the
termination of the Term; and (ii) the failure to deliver the unconditional
certificate of non-applicability until that time did not prevent the Landlord
from re-letting the Leased Premises (or any portions thereof) to other tenants,
if Landlord has a tenant ready, willing and able to lease the Leased Premises
(or any portions thereor) on terms acceptable to Landlord and such tenant.

32.6. If (i) Landlord fails to remedy any condition on or affecting the Leased
Premises which Landlord is responsible hereunder for remedying, and (ii) such
condition, if unremedied, shall adversely affect Tenant's use and occupancy of
the Leased Premises, Tenant, without any obligation to do so, in addition to
Tenant's rights and remedies under this Lease, may elect to remedy such
condition on behalf of Landlord after thirty (30) days prior written notice to
Landlord (or such shorter response time as reasonably is required under the
circumstances). Landlord shall reimburse Tenant for any actual, reasonable,
documented sums paid or third-party costs incurred by Tenant in remedying such
condition, including interest thereon at the Base Rate plus two (2) additional
percentage points, from the respective dates of Tenant's incurring such costs,
which sums and costs together with interest shall be due and payable by Landlord
to Tenant within ten (10) days following receipt of invoice therefor. In the
event Landlord fails to reimburse Tenant within thirty (30) days after receipt
of invoice, Tenant shall send Landlord a second request for payment and if
Landlord fails to reimburse Tenant within thirty (30) days after receipt of such
second request for payment, Tenant shall have the right to deduct amounts owed
to Tenant under this Section from installments of Base Rent next coming due
under this Lease until the full amount, with interest as aforesaid, shall be
recovered.

33. Waiver of Jury Trial.

The parties hereby waive any right they might otherwise have to a trial by jury
in connection with any dispute arising out of or in connection with this
Agreement or the use and occupancy of the Leased Premises.

34. Severability.

In the event that any provision of this Agreement, or the application of any
provision in any instance, shall be conclusively determined by a court of
competent jurisdiction to be illegal, invalid or otherwise unenforceable, such
determination shall not affect the validity or enforceability of the balance of
this Agreement.

                                     - 40 -
<PAGE>

35. Notices.

All notices contemplated by, permitted or required by this Agreement shall be in
writing. All notices required by this Agreement shall be personally delivered or
forwarded by recognized overnight carrier or by certified mail-return receipt
requested, addressed to the intended party at its address first set forth above
or, in the case of notices to the Tenant during the Term or any other period
during which the Tenant shall be in possession of the Leased Premises, at the
Leased Premises. A copy of any and all notices to Tenant also shall, as a
condition of the effectiveness thereof, be delivered to Gary A. Smith, Esquire,
Morgan, Lewis & Bockius LLP, 1701 Market Street, Philadelphia, PA 19103. All
notices required under this Agreement shall be deemed given (i) upon delivery by
overnight carrier; (ii) upon deposit, properly addressed and postage prepaid, in
a postal depository if delivery is by certified mail; or (iii) upon personal
delivery to the intended party, regardless of whether delivery shall be refused.
Either party, by a notice served in accordance with the foregoing provisions,
may change the address to which notices shall be sent. Notices given by an
attorney for a party shall be deemed to be notices given by the party.

36. Captions.

Captions have been inserted at the beginning of each section of this Agreement
for convenience of reference only and such captions shall not affect the
construction or interpretation of any such section of this Agreement.

37. Counterparts.

This Agreement may be executed in more than one counterpart, each of which shall
constitute an original of this Agreement but all of which, taken together, shall
constitute one and the same Agreement.

38. Applicable Law.

This Agreement and the obligations of the parties hereunder shall be governed by
and construed in accordance with the laws of the State of New Jersey.

39. Exclusive Benefit.

Except as may be otherwise specifically set forth in this Agreement, this
Agreement is made exclusively for the benefit of the parties hereto and their
permitted assignees and no one else shall be entitled to any right, remedy or
claim by reason of any provision of this Agreement.

40. Successors.

This Agreement shall be binding upon the parties hereto and their respective
successors and assigns.

41. Amendments.

This Agreement contains the entire agreement of the parties hereto, subsumes all
prior discussions and negotiations and, except as may otherwise be specifically
set forth in this Agreement, this Agreement may not be amended or otherwise
modified except by a writing signed by all the parties to this Agreement.

42. Waiver.

Except as may otherwise be specifically set forth in this Agreement, the failure
of any party at any time or times to require performance of any provision of
this Agreement shall in no manner affect the right at a later time to enforce
the same. No waiver by any party of any condition, or of the breach of any term,

                                     - 41 -
<PAGE>

covenant, representation or warranty set forth in this Agreement, whether by
conduct or otherwise, in any one or more instances shall be deemed to be or
construed as a further or continuing waiver of any such condition or breach, or
as a waiver of any other condition or of the breach of any other term, covenant,
representation or warranty set forth in this Agreement. The Landlord's
acceptance of, or endorsement on, any partial payment of Rent or any late
payment of Rent from the Tenant shall not operate as a waiver of the Landlord's
right to the balance of the Rent due on a timely basis regardless of any writing
to the contrary on, or accompanying, the Tenant's partial payment or the
Landlord's putative acquiescence therein.

43. Course of Performance.

No course of dealing or performance by the parties, or any of them, shall be
admissible for the purpose of obtaining an interpretation or construction of
this Agreement at variance with the express language of the Agreement itself.

44. Landlord's Concession.

The Landlord shall credit against any amount otherwise due from the Tenant in
accordance with section 5 of this Agreement the sum of $282,135 (the
"Allowance").

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

                                        LANDLORD:
                                        Route 206 Associates

                                        By: /s/ Eugene Schenkman
                                            ------------------------------------
                                            Eugene Schenkman Vice President
                                            Route 206 Corp., General Partner

                                        TENANT:
                                        Enzon, Inc.

                                        By: /s/ Arthur Higgins
                                            ------------------------------------
                                            Arthur Higgins, President and CEO

                                     - 42 -
<PAGE>

                                    EXHIBIT A

                       LEASED PREMISES FLOOR SPACE DIAGRAM

                                     - 43 -
<PAGE>

                                    EXHIBIT B

                              PROPERTY DESCRIPTION

ALL THAT CERTAIN tract or parcel of land located in the Township of Bridgewater,
County of Somerset and State of New Jersey more particularly described, as
follows:

BEGINNING at a point in the westerly sideline of U.S. Route 202-206 said point
being the northeasterly corner of a lot of land now or formerly of Fennessey
Buick, Inc., as described in Deed Book 1231 page 656, and from said beginning
point running thence (1) along a line of partitioning as approved by the
Township of Bridgewater South 82 degrees 17 minutes 56 seconds West, a distance
of 546.28 feet to a point in the easterly No Access Right-of-Way line of U.S.
Interstate Route 287; thence (2) along said right-of-way line, North 23 degrees
02 minutes 52 seconds West, a distance of 155.84 feet to an angle point in said
right-of-way line; thence (3) still along said right-of-way line North 20
degrees 29 minutes 57 seconds West, a distance of 543.09 feet to a point, said
point being the southwesterly corner of Lot 21, Block 3501, as shown on the
official tax map of the Township of Bridgewater, said Lot 21 being also lands
now or formerly M & M, Inc. of New Jersey; thence (4) along said Lot 21 and part
of Lot 22 now or formerly M. Downey, North 82 degrees 17 minutes 56 seconds
East, a distance of 510.83 feet to a point, said point being the northwest
corner of Lot 23, Block 3501, now or formerly C. Dudeck; thence (5) along said
Lot 23, South 07 degrees 27 minutes 04 seconds East, a distance of 75.00 feet to
a point, said point being the southwest corner of said Lot 23; thence (6) still
along said Lot 23, North 82 degrees 17 minutes 56 seconds East, a distance of
200.00 feet to a point in the aforementioned westerly sideline of U.S. Route
202-206; thence (7) along said westerly sideline, South 07 degrees 27 minutes 04
seconds East, a distance of 605.04 feet to the point and place of Beginning.

Containing 9.512 acres as shown on a "Proposed Partition-Map of Survey, Lot 24,
Block 3501", Bridgewater Township, Somerset County, New Jersey, revised July 6,
1967,prepared by Donald H. Stires, P.E. & L.S, Somerville, New Jersey.

                                     - 44 -
<PAGE>

                                    EXHIBIT C

                                   WORK LETTER

The following is the Work Letter provided for in the Agreement of which this
exhibit is a part. Landlord shall refurbish the third floor common area
including painting, re-carpeting and wall covering comparable to the recently
refurbished area on the second floor of the Building.

                                     - 45 -
<PAGE>

                                    EXHIBIT D

                         BUILDING RULES AND REGULATIONS

The following are the Building Rules and Regulations adopted in accordance with
subsection 7.2.3 of the Agreement of which this exhibit is a part; and the
Tenant and the Tenant's employees, other agents and Guests shall comply with
these Building Rules and Regulations:

1. The sidewalks, driveways, entrances, passages, courts, lobby, esplanade
areas, plazas, elevators, vestibules, stairways, corridors, halls and other
Common Facilities shall not be obstructed or encumbered or used for any purpose
other than ingress and egress to and from the Leased Premises. Landlord, in its
discretion, may tow any vehicle left in the Common Facilities overnight;
provided that the owner of such vehicle shall receive a written violation notice
for its first parking infraction, and before its vehicle is towed. The Tenant
shall not permit or suffer any of its employees, other agents or Guests to
congregate in any of the said areas. No door mat of any kind whatsoever shall be
placed or left in any public hall or outside any entry door of the Leased
Premises.

2. No awnings or other projections shall be attached to the outside walls of the
Building. No curtains, drapes, blinds, shades or screens shall be attached to,
hung in or used in connection with any window or door of the Leased Premises
without the prior written consent of Landlord. If such consent is given, such
curtains, drapes, blinds, shades or screens shall be of a quality, type, design
and color, and attached in the manner, approved by Landlord.

3. Except as otherwise specifically provided in subsection 18.1 of the
Agreement, no sign, insignia, advertisement, object, notice or other lettering
shall be exhibited, inscribed, painted or affixed so as to be visible from
outside the Leased Premises or the Building. In the event of the violation of
the foregoing by the Tenant, the Landlord may remove same without any liability
and may charge the expense incurred in such removal to the Tenant.

4. The sashes, doors, skylights, windows, and doors that reflect or admit light
and air into the halls, passageways or other public places in the Building shall
not be covered or obstructed and no bottles, parcels or other articles shall be
placed on the window sills.

5. No showcase or other articles shall be placed in front of or affixed to any
part of the Building or the Common Facilities.

6. The lavatories, water and wash closets and other plumbing fixtures shall not
be used for any purposes other than those for which they were designed and
constructed, and no sweepings, rubbish, rags, acids or other substances shall be
thrown or deposited therein. All damages resulting from any misuse thereof shall
be repaired at the expense of the Tenant that permitted or suffered the
violation hereof by the Tenant, the Tenant's employees, other agents or Guests.

7. Except as otherwise provided in the Lease or the Tenant Plan, the Tenant
shall not mark, paint, drill into or in any way deface any part of the Leased
Premises, the Building, the Common Facilities or the Property. Except as
otherwise provided in the Lease or the Tenant Plan, no boring, cutting or
stringing of wires shall be permitted, except with the prior written consent of
the Landlord, and as the Landlord may direct. Linoleum and other resilient floor
coverings shall be laid so that the same shall not come in direct contact with
the floor of the Leased Premises; and if linoleum or other resilient floor
coverings are desired, an interlining of builder's deadening felt shall be first
affixed to the floor by a paste or other material that is, and will remain,
soluble in water. The use of cement or other adhesive material that either is
not, or will not remain, soluble in water is prohibited.

                                     - 46 -
<PAGE>

8. No bicycles, vehicles, animals, reptiles, fish or birds of any kind shall be
brought into or kept in or about the Leased Premises.

9. No excessive noise including, without limiting the generality of the
foregoing, music or the playing of musical instruments, recordings, radio or
television which, in the reasonable judgment of Landlord, might disturb tenants
of Other Leased Premises shall be made or permitted by the Tenant. Nothing shall
be done or permitted in the Leased Premises by the Tenant which would impair or
interfere with the use or enjoyment of Other Leased Premises by any tenant
thereof. Nothing shall be thrown out of the doors, windows or skylights or down
the passageways of the Building.

10. The Tenant shall not manufacture any commodity or, except in connection with
kitchen spaces accessory to Tenant's use, prepare or dispense any foods or
beverages, tobacco, flowers or other commodities or articles without the prior
written consent of the Landlord.

11. Duplicates of keys and passes distributed to the Tenant by the Landlord
shall not be made. The Tenant shall provide appropriate security for keys.
Nothing shall be done to render any lock inoperable by the Building Grand Master
Key. No lock shall be installed without the Landlord's prior written consent;
and any lock so installed shall be operable by the Building Grand Master Key.
Upon termination of the Term, all keys, passes and duplicates provided by the
Landlord to the Tenant, or otherwise procured by the Tenant, shall be returned
to the Landlord. Any failure to comply with the foregoing which requires changes
in locks, new or additional keys, passes or duplicates or other services of a
locksmith shall be paid by the Tenant.

12. All deliveries and removals, and the carrying in or out of any safes,
freight, furniture, packages, boxes, crates or any other object or matter of any
description shall take place during such hours, in such manner and in such
elevators and passageways as the Landlord may determine from time to time and
publish in written notices to building tenants. Subject to the limitations of
applicable law, the Landlord reserves the right to inspect all objects and
matter being brought into the Building or the Common Facilities and to exclude
from the Building and the Common Facilities all objects and matter that violates
any of these Building Rules and Regulations or that are contraband. The Landlord
may (but shall not be obligated to) require any person leaving the Building or
the Common Facilities with any package or object or matter from the Leased
Premises to establish his authority from the Tenant to do so. The establishment
and enforcement of such a requirement shall not impose any responsibility on the
Landlord for the protection of the Tenant against the removal of property from
the Leased Premises. The Landlord shall not be liable to the Tenant for damages
or loss arising from the admission, exclusion or ejection of any person to or
from the Leased Premises or the Building or the Common Facilities under this
rule.

13. The Tenant shall not place any object in any portion of the Building that is
in excess of the safe carrying or designed load capacity of the structure.

14. The Landlord shall have the right to prohibit any advertising or display of
any identifying sign by the Tenant which in the reasonable exercise of
Landlord's judgment tends to impair the reputation of the Building or its
desirability; and, on written notice from the Landlord, the Tenant shall refrain
from or discontinue such advertising or display of such identifying sign.

15. The Landlord reserves the right to exclude from the Building and the Common
Facilities during hours other than Regular Business Hours all persons who do not
present a pass thereto signed by both the Landlord and the Tenant. All persons
entering or leaving the Building or the Common Facilities during hours other
than Regular Business may be required to sign a register. The Landlord will
furnish passes to persons for whom the Tenant requests same in writing. The
establishment and enforcement of such a requirement shall not impose any
responsibility on the Landlord for the protection of the Tenant against

                                     - 47 -
<PAGE>

unauthorized entry of persons.

16. The Tenant, before closing and leaving the Leased Premises at any time shall
use commercially reasonable measures to have all lights and appliances
generating heat (other than the heating system) turned off. All entrance doors
to the Leased Premises shall be left locked by the Tenant when the Leased
Premises are not in use. At any time when the Building or the Common Facilities
are locked during hours other than Regular Business Hours, the Building and the
Common Facilities locks shall not be defeated by any means, such as by leaving a
door ajar.

17. No person shall go upon the roof of the Building without the prior written
consent of the Landlord.

18. Any requirements of the Tenant may be attended to only upon application at
the office of the Building. The Landlord and its agents shall not perform any
work or do any work or do anything outside of the Landlord's obligations under
the Agreement except upon special instructions from the Landlord on terms
acceptable to the Landlord and the Tenant.

19. Canvassing, soliciting and peddling in the Building and the Common
Facilities are prohibited and the Tenant shall cooperate to prevent same.

20. There shall not be used in any space, or in the public halls or other Common
Facilities of the Building, in connection with the moving or delivery or receipt
of safes, freight, furniture, packages, boxes, crates, paper, office material,
or any other matter or thing, any hand trucks or dollies except those equipped
with rubber tires, side guards and such other safeguards as the Landlord
reasonably shall require. No hand trucks shall be used in passenger elevators,
and no passenger elevators shall be used for the moving, delivery or receipt of
the aforementioned articles. In connection with moving in or out any furniture,
furnishings, equipment, heavy articles and heavy packages, the Tenant shall take
such precautions as reasonably may be necessary to prevent excessive wear and
tear in the Building's Common Facilities and the Leased Premises including,
without limiting the generality of the foregoing, floor and wall treatments.

21. The Tenant shall not cause or permit any odors of cooking or other processes
or any unusual or objectionable odors to emanate from the Leased Premises which
might constitute a Nuisance.

22. The Landlord reserves the right not to enforce any Building Rule or
Regulation against any tenants of Other Leased Premises. The Landlord reserves
the right to rescind, amend or waive any Building Rule and Regulation when, in
the Landlord's reasonable judgment, it appears necessary or desirable for the
reputation, safety, care or appearance of the Building or the preservation of
good order therein or the operation of the Building or the comfort of tenants or
others in the Building; provided, however, that Landlord shall apply, enforce
and waive, as applicable, Building Rules and Regulations in a reasonable,
uniform and non-discriminatory manner.

                                     - 48 -
<PAGE>

                                    EXHIBIT E

                      DEFINITIONS AND INDEX OF DEFINITIONS

In accordance with section 1 of the Agreement of which this exhibit is a part,
throughout the Agreement the following terms and phrases shall have the meanings
set forth or referred to below:

1.    "Additional Rent" means all amounts, other than Basic Rent and any
      Security Deposit, required to be paid by the Tenant to the Landlord in
      accordance with this Agreement.

2.    "Additional Right of First Offer" is defined in subsection 6.2.2 of this
      Agreement.

3.    "Adjusted Gross Footage" is defined in definition 34 of this Agreement.

4.    "Adjusted Tenant's Share" is defined in definition 62 of this Agreement.

5.    "Affiliate" is defined in subsection 17.6 of this Agreement.

6.    "Agreement" means this Lease and Lease Agreement (including exhibits), as
      it may have been amended.

7.    "Allowance" is defined in section 44 of this Agreement.

8.    "Annual Amortized Capital Expenditure" means the payment amount determined
      as an annuity in arrears using the cost incurred by the Landlord for any
      Capital Expenditure as the present value, the number of years of its
      useful life selected by the Landlord in accordance with GAAP, but without
      reference to any tax regulations, as the number of periods and the Base
      Rate in effect when the respective improvement is first placed into
      service plus two additional percentage points as the annual rate of
      interest.

9.    "Base Rate" means the prime commercial lending rate per year as announced
      from time to time by Fleet National Bank at its principal office.

10.   "Base Year" means the full calendar year 2002 with respect to Operational
      Expenses (adjusted in accordance with the definition of Base Year
      Operational Expenses which follows) and Taxes.

11.   "Base Year Operational Expenses" means Operational Expenses incurred by
      the Landlord during the Base Year as defined in subsection 10.2 of this
      Agreement. If less than 95% of the rentable area of the Building is
      occupied during the Base Year then the Base Year Operational Expenses
      shall be increased to the amount which normally would have been incurred
      had the occupancy been 95%. If in any subsequent calendar year less than
      95% of the rentable area of the Building is occupied, the Operational
      Expenses for such calendar year shall be increased to the amount which
      normally would have been incurred had the occupancy been 95%. If the
      cafeteria is reduced in size or eliminated then the Base Year Operational
      Expenses shall be adjusted by eliminating any expense associated with the
      cafeteria which was incurred during the Base Year. If the cafeteria is
      restored, then the full Base Year Operational Expenses shall be restored.

12.   "Base Year Taxes" means the product of the final assessed value, as the
      same may subsequently be adjusted in any appeal of the tax assessor's
      valuation, of the Property, the Building and any other improvements on the
      Property in the Base Year and the Municipality's lowest tax rate for
      office buildings and the property on which they stand in effect during the
      Base Year.

                                     - 49 -
<PAGE>

13.   "Basic Rent" is defined in subsection 3.2 of this Agreement as revised by
      subsection 8.1.11 of this Agreement and definition 34 of this Agreement.

14.   "Broker" is defined in subsection 30.2 of this Agreement.

15.   "Building" means the office building erected on the Property which is
      commonly known as 685 Route 202/206, Bridgewater, New Jersey, as it may,
      in the Landlord's sole discretion, be increased, decreased, modified,
      altered or otherwise changed from time to time before, during or after the
      Term. As the Building is presently constructed it is agreed to contain
      137,139 gross rentable square feet of floor space. The Building also
      contains 9,520 square feet of basement area.

16.   "Capital Expenditure" is defined in subsection 10.3 of this Agreement.

17.   "Commencement Date" is defined in section 4 of this Agreement.

18.   "Common Facilities" means the areas, facilities and improvements provided
      by the Landlord in the Building (except the Leased Premises and the Other
      Leased Premises) and on or about the Property, including, without limiting
      the generality of the foregoing, the Parking Facilities and access roads
      thereto, for non-exclusive use by the Tenant in accordance with subsection
      2.2 of this Agreement, as they may, in the Landlord's sole discretion, be
      increased, decreased, modified, altered or otherwise changed from time to
      time before, during or after the Term, and subject to rights which may be
      granted to the major tenant to utilize the lobby as a common reception
      area. If access roads are shared with other properties then the costs
      associated therewith shall be allocated on an equitable basis among the
      properties utilizing the access roads.

19.   "Common Walls" means those walls which separate the Leased Premises from
      Other Leased Premises.

20.   "Completion Delay" is defined in subsection 4.2.2.5 of this Agreement.

21.   "Election Right" is defined in subsection 21.2 of this Agreement.

22.   "Electric Charges" means all the supplying utility's charges for, or in
      connection with, furnishing electricity including charges determined by
      actual usage, any seasonal adjustments, demand charges, energy charges,
      energy adjustment charges and any other charges, howsoever denominated, of
      the supplying utility, including sales and excise taxes and the like,
      without any markup by the Landlord.

23.   "Environmental Laws" is defined in subsection 7.2.8 (ii) of this
      Agreement.

24.   "Event of Default" is defined in section 22 of this Agreement.

25.   "Expiring Term" means, when used in the context of any Option to Renew,
      the Term as it is then scheduled to expire (immediately prior to exercise
      of the next available Option to Renew).

26.   "Gross Footage" is defined in definition 34 of this Agreement.

27.   The Tenant's "Guests" shall mean the Tenant's licensees, invitees and all
      others in, on or about the Leased Premises, the Building, the Common
      Facilities or the Property, either at the Tenant's express or implied
      request or invitation or for the purpose of soliciting or visiting the
      Tenant.

28.   "Hazardous Substance" is defined in subsection 7.2.8 (ii) of this
      Agreement.

29.   "Holdover Damages" is defined in subsection 23.4 of this Agreement.

                                     - 50 -
<PAGE>

30.   "Index" means the "all items" index figure for the New York Northeastern
      New Jersey average of the Consumer Price Index for all urban wage earners
      and clerical workers which uses a base period of 1982-84=100, published by
      the United States Department of Labor, so long as it continues to be
      published. If the Index is not published for a period of three consecutive
      months, or if its base period is changed, the term "Index" shall mean that
      index, as nearly equivalent in purpose, function and coverage as
      practicable to the original Index, which the Landlord shall have
      designated by notice to the Tenant.

31.   "Initial Term" means the period so designated in subsection 4.1 of this
      Agreement.

32.   "Initial Year" means the first 12 full calendar months of the Initial
      Term.

33.   "Landlord" means the person so designated at the beginning of this
      Agreement and those successors to the Landlord's interest in the Property
      and/or the Landlord's rights and obligations under this Agreement
      contemplated by section 26 of this Agreement.

34.   "Leased Premises" means that portion of the interior of the Building (as
      viewed from the interior of the Leased Premises) bounded by the interior
      sides of the unfinished floor and the finished ceiling on the floor (as
      the floors have been designated by the Landlord) of the Building, the
      centers of all Common Walls and the exterior sides of all walls other than
      Common Walls, the outline of which floor space is designated on the
      diagram set forth in Exhibit A attached hereto, which portion contains
      15,436 usable square feet of floor space (the "Usable Footage") and 18,809
      square feet of gross rentable floor space (the "Gross Footage"). If the
      present square footage of the cafeteria is reduced, then the Gross Footage
      shall be adjusted downward and the Basic Rent shall be redetermined by
      multiplying the Adjusted Gross Footage by the Basic Rent per foot which
      would otherwise be due under this Agreement. To determine the Adjusted
      Gross Footage, the number of usable square feet of floor space which is
      added to the Building's net rentable area (by reason of the elimination of
      some or all of the cafeteria) shall be added to 112,409 square feet (the
      "Revised Usable Footage"). A new factor shall be calculated (the "New
      Multiplier") which, when multiplied by the Revised Usable Footage,
      produces a product of 137,139 square feet. The Adjusted Gross Footage
      shall equal the product of the Usable Footage multiplied by the New
      Multiplier (the "Adjusted Gross Footage"). Similar adjustments shall be
      made each time the size of the cafeteria is adjusted but the Gross Footage
      shall not be increased to more than 18,809 square feet.

35.   "Legal Holidays" means New Year's Day, Presidents' Day, Memorial Day,
      Independence Day, Labor Day, Thanksgiving Day and Christmas Day.

36.   "Market Rental Rate" means, at the time of reference, the gross rentable
      floor space of the Leased Premises multiplied by that annual rate of Basic
      Rent per square foot of gross rentable floor space which is the result of
      arm's length negotiation between sophisticated landlords and tenants for
      comparable other leased premises taking into consideration the term of the
      lease, tenant improvements allowance and other concessions.

37.   "Municipality" means Bridgewater, New Jersey, or any successor
      municipality with jurisdiction over the Property.

38.   "New Multiplier" is defined in definition 34 of this Agreement.

39.   "No Pass Through Period" means, in the context of Operational Expenses and
      Taxes, the period beginning on the Commencement Date and ending on the day
      prior to the first anniversary of the Commencement Date.

                                     - 51 -
<PAGE>

40.   "Nuisance" means any condition or occurrence which unreasonably or
      materially interferes with the authorized use and enjoyment of the Other
      Leased Premises and the Common Facilities by any tenant of Other Leased
      Premises or by any person authorized to use any Other Leased Premises or
      Common Facilities.

41.   "Operational Expenses" is defined in subsection 10.2 of this Agreement.

42.   "Option to Renew" is defined in subsection 6.1 of this Agreement.

43.   "Other Leased Premises" means all premises within the Building, with the
      exception of the Leased Premises, that are, or are available to be, leased
      to tenants or prospective tenants, respectively.

44.   "Outside Date" is defined in subsection 4.1 of this Agreement.

45.   "Parking Facilities" means the parking area adjacent to the Building,
      which parking area is provided as Common Facilities which includes not
      fewer than four (4) standard-sized parking spaces per 1,000 usable square
      feet within the Building.

46.   "Person" includes an individual, a corporation, a partnership, a trust, an
      estate, an unincorporated group of persons and any group of persons.

47.   "Post-Term Rent" is defined in subsection 32.5 of this Agreement.

48.   "Property" means the parcel of land, as it may, in the Landlord's sole
      discretion, be increased, decreased, modified, altered or otherwise
      changed from time to time before, during or after the Term, on which the
      Building is erected. As the Property is presently constituted, it is more
      particularly described in Exhibit B attached hereto.

49.   "Regular Business Hours" means 8:00 A.M. to 7:00 P.M., Monday through
      Friday; and 9:00 A.M. to 1:00 P.M. on Saturdays; except on Legal Holidays.

50.   "Re-Leasing Damages" is defined in subsection 23.3.

51.   "Renewal Term" means, at the time of reference, any portion of the Term,
      other than the Initial Term, as to which the Tenant has properly exercised
      an Option to Renew which Option to Renew has not been rescinded in
      accordance with subsection 6.2 of this Agreement.

52.   "Rent" means Basic Rent and Additional Rent.

53.   "Revised Usable Footage" is defined in definition 34 of this Agreement.

54.   "Right of First Offer" is defined in subsection 6.2.1 of this Agreement.

55.   "Security Deposit" is designated in section 29 of this Agreement.

56.   "Target Date" means, upon execution and delivery of this Agreement, the
      then estimated Commencement Date which is hereby established to be June 1,
      2002.

57.   "Taxes" means, in any calendar year, the aggregate amount of real property
      taxes, assessments and sewer rents, rates and charges, state and local
      taxes, transit taxes and every other governmental charge, whether general
      or special, ordinary or extraordinary (except corporate franchise taxes
      and taxes imposed on, or computed as a function of, net income or net
      profits from all sources and except taxes charged, assessed or levied
      exclusively on the Leased Premises or arising exclusively from the
      Tenant's

                                     - 52 -
<PAGE>

      occupancy of the Leased Premises) charged, assessed or levied by any
      taxing authority with respect to the Property, the Building, the Common
      Facilities and any other improvements on the Property, less any refunds or
      rebates (net of expenses incurred in obtaining any such refunds or
      rebates) of Taxes actually received by the Landlord during such calendar
      year with respect to any period during the Term for the benefit of the
      Tenant, tenants of Other Leased Premises and the Landlord. If during the
      Term there shall be a change in the means or methods of taxing real
      property generally in effect at the beginning of the Term and another type
      of tax or method of taxation should be substituted in whole or in part
      for, or in lieu of, Taxes, the amounts calculated under such other types
      of tax or by such other methods of taxation shall also be deemed to be
      Taxes. Until such time as the actual amount of Taxes for any calendar year
      becomes known, the amount thereof shall be the Landlord's estimate of
      Taxes for that calendar year.

      Tenant's proportionate share of Taxes shall only include those
      installments thereof becoming due during the term of this Lease. If any
      assessments may be paid in installments over a period of years, such
      assessments shall be deemed to be payable over the longest number of years
      permitted by the assessing authority, and only the installments coming due
      during the term of this Lease, together with any interest or carrying
      charges due will be included within the impositions payable by Tenant. In
      addition, Landlord agrees to take advantage of opportunities providing
      payment of impositions at a discount to the extent Landlord, in its
      reasonable business judgment, shall determine.

      In addition, Tenant's obligation hereunder shall expressly exclude any
      excise, franchise, estate, succession or inheritance taxes, as well ass
      any penalties imposed for late payment of any real estate tax, assessment
      or other imposition (except for penalties on taxes which Landlord has not
      paid as a result of a bona fide contest or for which it has not received
      payment from Tenant) and shall in no event include any real estate tax or
      assessment attributable solely to a period occurring prior to the
      Commencement Date of this Lease.

58.   "Tenant" means the person so designated at the beginning of this
      Agreement.

59.   "Tenant Electric Charges" means (a) during Regular Business Hours,
      Electric Charges attributable to the Tenant's use of electricity in the
      Leased Premises for purposes other than heating, ventilation and air
      conditioning provided to the Leased Premises by the Landlord in accordance
      with subsection 8.1.5 of this Agreement and (b) during other than Regular
      Business Hours, a charge at the rate of $50.00 per hour or partial hour of
      use plus Electric Charges attributable to the Tenant's use of electricity
      in the Leased Premises for all purposes including, without limiting the
      generality of the foregoing, heating, ventilation and air conditioning.
      Landlord shall arrange for a system operating twenty-four (24) hours a day
      by which Tenant may secure after hours heating and air-conditioning on
      demand.

60.   "Tenant Plan" means construction drawings and related construction
      specifications regarding the build-out of the Leased Premises (with any
      construction drawings in a reproducible diazo sepia mylar form and in CAD
      readable format) including, without limiting the generality of the
      foregoing, the finish schedule, signed and sealed by a New Jersey-licensed
      architect, complying in all respects with applicable building and fire
      codes and insurance underwriting standards in effect and in sufficient
      detail to permit the Municipality to issue any required building permits
      and to permit skilled contractors to supply and perform the work called
      for therein. The Tenant Plan shall not include any specialized computer
      installations or any telecommunications equipment or facilities.

61.   "Tenant Plan Due Date" means March 18, 2002.

62.   "Tenant's Share" of any amount means 13.715%. The Tenant's Share shall be
      adjusted if the present square footage of the cafeteria is reduced. The
      Adjusted Tenant's Share shall be determined by

                                     - 53 -
<PAGE>

      dividing the Adjusted Gross Footage determined in accordance with
      definition 34 of this Agreement by 1,371.39 (the "Adjusted Tenant's
      Share"). Similar adjustments shall be made each time the size of the
      cafeteria is adjusted but the Tenant's Share shall not be increased to
      more than 13.715%.

63.   "Term" means the Initial Term plus, at the time of reference, any Renewal
      Term.

64.   "Termination Damages" is defined in subsection 23.2 of this Agreement.

65.   "Usable Footage" is defined in definition 34 of this Agreement.

66.   "Utilities Expenses" means Electric Charges (other than Tenant Electric
      Charges) and all charges for any other fuel that may be used in providing
      electricity and services powered by electricity that the Landlord provides
      in accordance with section 8 of this Agreement to the Building, the Leased
      Premises, Other Leased Premises, the Common Facilities and the Property,
      including sales and excise taxes and the like.

67.   "Venture Partner" is defined in subsection 17.7 of this Agreement.

68.   "Wire Restoration Work" is defined in subsection 21.2.2 of this Agreement.

69.   "Wiring" is defined in subsection 21.2.1 of this Agreement.

70.   "Work" is defined in subsection 5.2 of this Agreement.

71.   "Work Letter" means Exhibit C attached hereto which describes the
      improvements which Landlord will install without installation charge to
      the Tenant in addition to the Work.

                                     - 54 -
<PAGE>

                            LEASE AND LEASE AGREEMENT

                                     Between

                              Route 206 Associates

                                  The Landlord

                                       And

                                   Enzon, Inc.

                                   The Tenant

                             For Leased Premises In

                   685 Route 202/206, Bridgewater, New Jersey

                                 March   , 2002

Prepared by:
Gary O. Turndorf
520 Route 22
P.O. Box 6872
Bridgewater, NJ 08807
(908) 725-8100

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

1.  DEFINITIONS ...........................................................    1

2.  LEASE OF THE LEASED PREMISES ..........................................    1

3.  RENT ..................................................................    1

4.  TERM ..................................................................    2

5.  PREPARATION OF THE LEASED PREMISES ....................................    4

6.  OPTIONS ...............................................................    5

7.  USE AND OCCUPANCY .....................................................    6

8.  UTILITIES, SERVICES, MAINTENANCE AND REPAIRS ..........................    8

9.  ALLOCATION OF THE EXPENSE OF UTILITIES, SERVICES, MAINTENANCE, REPAIRS
    AND TAXES .............................................................    9

10. COMPUTATION AND PAYMENT OF ALLOCATED EXPENSES OF UTILITIES, SERVICES,
    MAINTENANCE, REPAIRS, TAXES AND CAPITAL EXPENDITURES ..................   10

11. LEASEHOLD IMPROVEMENTS, FIXTURES AND TRADE FIXTURES ...................   17

12. ALTERATIONS, IMPROVEMENTS AND OTHER MODIFICATIONS BY THE TENANT .......   17

13. LANDLORD'S RIGHTS OF ENTRY AND ACCESS .................................   19

14. LIABILITIES AND INSURANCE OBLIGATIONS .................................   20

15. CASUALTY DAMAGE TO BUILDING OR LEASED PREMISES ........................   22

16. CONDEMNATION ..........................................................   23

17. ASSIGNMENT OR SUBLETTING BY TENANT ....................................   23

18. SIGNS, DISPLAYS AND ADVERTISING .......................................   26

19. QUIET ENJOYMENT .......................................................   27

20. ITENTIONALLY OMITTED ..................................................   27

21. SURRENDER .............................................................   27

22. EVENTS OF DEFAULT .....................................................   28

23. RIGHTS AND REMEDIES ...................................................   29

                                     - i -
<PAGE>

24. INTENTIONALLY OMITTED .................................................   32

25. MORTGAGE AND UNDERLYING LEASE PRIORITY ................................   32

26. TRANSFER BY LANDLORD ..................................................   32

27. INDEMNIFICATION .......................................................   33

28. PARTIES' LIABILITY ....................................................   35

29. SECURITY DEPOSIT ......................................................   36

30. REPRESENTATIONS .......................................................   37

31. RESERVATION IN FAVOR OF TENANT ........................................   38

32. TENANT'S CERTIFICATES AND MORTGAGEE NOTICE REQUIREMENTS ...............   38

33. WAIVER OF JURY TRIAL ..................................................   40

34. SEVERABILITY ..........................................................   40

35. NOTICES ...............................................................   41

36. CAPTIONS ..............................................................   41

37. COUNTERPARTS ..........................................................   41

38. APPLICABLE LAW ........................................................   41

39. EXCLUSIVE BENEFIT .....................................................   41

40. SUCCESSORS ............................................................   41

41. AMENDMENTS ............................................................   41

42. WAIVER ................................................................   41

43. COURSE OF PERFORMANCE .................................................   42

44. LANDLORD'S CONCESSION .................................................   42

================================================================================
  EXHIBIT                           DESCRIPTION                             PAGE
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     A       LEASED PREMISES FLOOR SPACE DIAGRAM ..........................   43
     B       PROPERTY DESCRIPTION .........................................   44
     C       WORK LETTER ..................................................   45
     D       BUILDING RULES AND REGULATIONS ...............................   46
     E       DEFINITIONS AND INDEX OF DEFINITIONS .........................   49
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                                     - ii -

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