Document:

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                                                                  Exhibit 4.2.11

NEITHER THIS WARRANT NOR THE COMMON STOCK WHICH MAY BE ACQUIRED UPON THE
EXERCISE HEREOF ("WARRANT SHARES"), AS OF THE DATE OF ISSUANCE HEREOF HAS BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR THE
"BLUE SKY" OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE OFFERED, SOLD,
TRANSFERRED, PLEDGED, HYPOTHECATED, ASSIGNED OR OTHERWISE DISPOSED OF AND ANY
TRANSFER OF PURPORTED TRANSFER SHALL NOT BE RIGHTFUL UNDER THE UNIFORM
COMMERCIAL CODE AND THE COMPANY SHALL HAVE NO DUTY TO REGISTER A TRANSFER OF
THESE SECURITIES EXCEPT (i) PURSUANT TO A REGISTRATION STATEMENT UNDER THE ACT
WHICH HAS BECOME EFFECTIVE AND IS CURRENT WITH RESPECT TO THESE SECURITIES, AND
IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAW, OR (ii) PURSUANT TO A
SPECIFIC EXEMPTION FROM REGISTRATION UNDER THE ACT BUT ONLY UPON A HOLDER HEREOF
FIRST HAVING OBTAINED THE WRITTEN OPINION OF COUNSEL REASONABLY SATISFACTORY TO
THE COMPANY THAT THE PROPOSED DISPOSITION IS CONSISTENT WITH ALL APPLICABLE
PROVISIONS OF THE SECURITIES ACT AS WELL AS ANY APPLICABLE "BLUE SKY" OR SIMILAR
SECURITIES LAW. THE RESTRICTIONS CONTAINED HEREIN ARE BINDING ON THE HOLDER
HEREOF AND HIS SUCESSORS AND ASSIGNS.

                                                     For the Purchase of 200,000
                                                          Shares of Common Stock

                       WARRANT FOR THE PURCHASE OF 200,000
                             SHARES OF COMMON STOCK
                                       OF
                          STRATUS SERVICES GROUP, INC.
                            (A DELAWARE CORPORATION)

     Stratus Services Group, Inc., a Delaware corporation (the "Company), hereby
certifies that for the value received, STETSON CONSULTING ("Registered Holder"),
is entitled, subject to the terms set forth below, to purchase from the Company,
at any time or from time to time during the period commencing on OCTOBER 17,
2001 ("Commencement Date") and ending five years from the Commencement date,
200,000 shares of Common Stock, $.01 par value, of the Company ("Common Stock"),
at a purchase price equal to $1.00 per share. The number of shares of Common
Stock purchasable upon exercise of this Warrant, and the purchase price per
share, each as adjusted from time to time pursuant to the provisions of this
Warrant are hereinafter referred to as the "Warrant Shares" and the "Purchase
Price", respectively.

     1.   EXERCISE.

     (a)  This Warrant may be exercised by Registered Holder, in whole or in
part, by the surrender of this Warrant (with the Notice of Exercise Form
attached hereto as Exhibit I duly executed by Registered Holder) at the
principal office of the Company, or at such other office or agency as the
Company may designate, accompanied by payment in full, in lawful money of the
United States, of an amount equal to the then applicable Purchase Price
multiplied by the number of Warrant Shares then being purchased upon such
exercise

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     (b)  Each exercise of this Warrant shall be deemed to have been effected
immediately prior to the close of business on the day on which this Warrant
shall have been surrendered to the Company as provided in subsection 1(a) above.
At such time, the person or persons in whose name or names any certificates for
Warrant Shares shall be issuable upon such exercise as provided in subsection
1(c) below shall be deemed to have become the holder or holders of record of the
Warrant Shares represented by such certificates.

     (c)  As soon as practicable after the exercise of the purchase right
represented by this Warrant, the Company at its expense will use its best
efforts to cause to be issued in the name of, and delivered to, Registered
Holder, or, subject to the terms and conditions hereof, to such other individual
or entity as Registered Holder (upon payment by Registered Holder of any
applicable transfer taxes) may direct;

                    (i) a certificate or certificates for the number of full
               shares of Warrant Shares to which Registered Holder shall be
               entitled upon such exercise plus, in lieu of any fractional share
               to which Registered Holder would otherwise be entitled, cash in
               an amount determined pursuant to Section 3 hereof; and

                    (ii) in case such exercise is in part only, a new warrant or
               warrants (dated the date hereof) of like tenor, stating on the
               face or faces thereof the number of shares currently stated on
               the face of this Warrant minus the number of such shares
               purchased by Registered Holder upon such exercise as provided in
               subsection 1(a) above.

2.   ADJUSTMENTS

     (a)  SPLIT SUBDIVISION OR COMBINATION OF SHARES. If the outstanding shares
of the Company's Common Stock at any time while this Warrant remains outstanding
and unexpired shall be subdivided or split into a greater number of shares, or a
dividend in Common Stock shall be paid in respect of Common Stock, the Purchase
Price in effect immediately prior to such subdivision or at the record date of
such dividend, simultaneously with the effectiveness of such subdivision or
split or immediately after the record date of such dividend (as the case may
be), shall be proportionately decreased. If the outstanding shares of Common
Stock shall be combined or reverseed split into a smaller number of shares, the
Purchase Price in effect immediately prior to such combination or reverse split,
simultaneously with the effectiveness of such combination or reverse split,
shall be proportionately increased. When any adjustment is required to be made
in the Purchase Price, the number of shares of Warrant Shares purchasable upon
the exercise of this Warrant shall be changed to the number determined by
dividing (i) an amount equal to the number of shares issuable upon the exercise
of this Warrant immediately prior to such adjustment, multiplied by the Purchase
Price in effect immediately prior to such adjustment, by (ii) the Purchase Price
in effect immediately after such adjustment.

     (b)  RECLASSIFICATION REORGANIZATION CONSOLIDATION OR MERGER. In the case
of any reclassification of the Common Stock (other than a change in par value or
a subdivision or combination as provided for in subsection 2(a) above), or any
reorganization, consolidation or

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merger of the Company with or into another corporation (other than a merger or
reorganization with respect to which the Company is the continuing corporation
and which does not result in any reclassification of the Common Stock), or a
transfer of all or substantially all of the assets of the Company, or the
payment of a liquidating distribution then, as part of any such reorganization,
reclassification, consolidation, merger, sale or liquidating distribution,
lawful provision shall be made so that Registered Holder shall have the right
thereafter to receive upon the exercise -hereof, the kind and amount of shares
of stock or other securities or property which Registered Holder would have been
entitled to receive if, immediately prior to any such reorganization,
reclassification, consolidation, merger, sale or liquidating distribution, as
the case may be, Registered Holder had held the number of shares of Common Stock
which were then purchasable upon the exercise of this Warrant. In any such case,
appropriate adjustment (as reasonably determined by the Board of Directors of
the Company) shall be made in the application of the provisions set forth herein
with respect to the rights and interests thereafter of Registered Holder such
that the provisions set forth in this Section 2 (including provisions with
respect to the Purchase Price) shall thereafter be applicable, as nearly as is
reasonably practicable, in relation to any shares of stock or other securities
or property thereafter deliverable upon the exercise of this Warrant.

     (c)  PRICE ADJUSTMENT. No adjustment in the per share exercise price shall
be required unless such adjustment would require an increase or decrease in the
Purchase Price of at least $.001, provided, however, that any adjustments which
by reason of this paragraph are not required to be made shall be carried forward
and taken into account in any subsequent adjustment. All calculations under this
Section 2 shall be made to the nearest cent or to the nearest 1/100th of a
share, as the case may be.

     (d)  PRICE REDUCTION. Notwithstanding any other provision set forth in this
Warrant, at any time and from time to time during the period that this Warrant
is exercisable, the Company in it sole discretion may reduce the Purchase Price
or extend the period during which this Warrant is exercisable

     (e)  NO IMPAIRMENT The Company will not, by amendment of its Articles of
Incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Company but will at all times in good
faith assist in the carrying out of all the provisions of this Section 2 and in
the taking of all such actions as may be necessary or appropriate in order to
protect against impairment of the rights of Registered Holder to adjustments in
the Purchase Price

     (f)  NOTICE OF ADJUSTMENT Upon any adjustment of the Purchase Price or
extension of the Warrant exercise period, the Company shall forthwith give
written notice thereto to Registered Holder describing the event requiring the
adjustment, stating the adjusted Purchase Price and the adjusted number of
shares purchasable upon the exercise hereof resulting from such event, and
setting forth in reasonable detail the method of calculation and the facts upon
which such

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calculation is based

     3.   FRACTIONAL SHARES. The Company shall not be required upon the exercise
of this Warrant to issue any fractional shares, but shall make an adjustment
thereof in cash on the basis of the last sale price of the Warrant Shares on the
over-the-counter market as reported by Nasdaq or on a national securities
exchange on the trading day immediately prior to the date of exercise, whichever
is applicable, or if neither is applicable, then on the basis of the then fair
market value of the Warrant Shares as shall be reasonably determined by the
Board of Directors of the Company.

     4.   LIMITATION ON SALES. Each holder of this Warrant acknowledges that
this Warrant and the warrant Shares, as of the date of original issuance of this
Warrant, have not been registered under the Securities Act of 1933, as amended
("Act"), and agrees not to sell, pledge, distribute, offer for sale, transfer or
otherwise dispose of this Warrant or any Warrant Shares issued upon its exercise
in the absence of (a) an effective registration statement under the Act as to
this Warrant or such Warrant Shares or (b) an opinion of counsel, satisfactory
to the Company, that such registration and qualification are not required. The
Warrant Shares issued upon exercise thereof shall be imprinted with a legend in
substantially the following form:

               "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
               REGISTERED UNDER THE SECURITIES ACT OF 1933; AS AMENDED (THE
               "SECURITIES ACT"), OR THE "BLUE SKY" OR SECURITIES LAWS OF ANY
               STATE AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED,
               HYPOTHECATED, ASSIGNED OR OTHERWISE DISPOSED OF AND ANY TRANSFER
               OR PURPORTED TRANSFER SHALL NOT BE RIGHTFUL UNDER THE UNIFORM
               COMMERCIAL CODE AND THE COMPANY SHALL HAVE NO DUTY TO REGISTER A
               TRANSFER OF THESE SECURITIES EXCEPT (i) PURSUANT TO A
               REGISTRATION STATEMENT UNDER THE SECURITIES ACT WHICH HAS BECOME
               EFFECTIVE AND IS CURRENT WITH RESPECT TO THESE SECURITIES. OR
               (ii) PURSUANT TO A SPECIFIC EXEMPTION FROM REGISTRATION UNDER THE
               ACT BUT ONLY UPON A HOLDER HEREOF FIRST HAVING OBTAINED THE
               WRITTEN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY
               THAT THE PROPOSED DISPOSITION IS CONSISTENT WITH ALL APPLICABLE
               PROVISIONS OF THE SECURITIES ACT AS WELL AS ANY APPLICABLE "BLUE
               SKY" OR SIMILAR SECURITIES LAW. THE RESTRICTIONS CONTAINED HEREIN
               ARE BINDING ON THE HOLDER HEREOF AND HIS SUCCESSORS AND ASSIGNS."

     5.   CERTAIN DIVIDENDS. If the Company pays a dividend or makes a
distribution on the Common Stock ("Dividend"), other than a cash dividend or a
stock dividend payable in shares of Common Stock, then the Company will pay or
distribute to Registered Holder, upon the exercise hereof, in addition to the
Warrant Shares purchased upon such exercise, the Dividend which

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would have been paid to such Registered Holder if it had been the owner of
record of such warrant Shares immediately prior to the date on which a. record
is taken for such Dividend or, if no record is taken, the date as of which the
record holders of Common Stock entitled to such Dividend are determined

     6.   PIGGYBACK REGISTRATION RIGHTS. The Company has no obligation to file a
registration statement under the Act with the Securities and Exchange Commission
or any state agency registering for reoffer and resale of the Warrant Shares.
However, if the Company should at any time propose for any reason to register
Primary Shares or Other Shares under the Securities Act, the Company shall use
its reasonable best efforts to cause all such Registrable Shares to be included
in such registration on the same terms and conditions as the securities
otherwise being sold in such registration.

     7.   NOTICES OF RECORD DATE- In case:

     (a)  the Company shall take a record of the holders of its Common Stock (or
other stock or securities at the time deliverable upon the exercise of this
Warrant) for the purpose of entitling or enabling them to receive any dividend
or other distribution, or to receive any right to subscribe for or purchase any
shares of any class or any other securities, or to receive any other right, or

     (b)  of any capital reorganization of the Company, any reclassification of
the capital stock of the Company, any consolidation or merger of the Company
with or into another corporation (other than a consolidation or merger in which
the Company is the surviving entity), or any transfer of all or substantially
all of the assets of the Company, or

     (c)  of the voluntary or involuntary dissolution, liquidation or winding-up
of the Company,

then, and in each such case, the Company will mail or cause to be mailed to
Registered Holder a notice specifying, as the case may be, (i) the date on which
a record is to be taken for the purpose of such dividend, distribution or right,
and stating the amount and character of such dividend, distribution or right, or
(ii) the effective date on which such reorganization, reclassification,
consolidation, merger, transfer, dissolution, liquidation or winding-up is to
take place, and the time, if any is to be fixed, as of which the holders of
record of Common Stock (or such other stock or securities at the time
deliverable upon the exercise of this Warrant) shall be entitled to exchange
their shares of Common Stock (or such other stock or securities) for securities
or other property deliverable upon such reorganization' reclassification,
consolidation, merger, transfer, dissolution, liquidation or winding-up. Such
notice shall be mailed at least ten (10) days prior to the record date or
effective date for the event specified in such notice, provided that the failure
to mail such notice shall not affect the legality or validity of any such
action.

     8.   RESERVATION OF STOCK. The Company will at all times reserve and keep
available, solely for issuance and delivery upon the exercise of this warrant,
such shares of Common Stock

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and other stock, securities and property, as from time to time shall be issuable
upon the exercise of this Warrant. The Company shall apply for listing, and
obtain such listing, for the Warrant Shares on The Nasdaq Stock Market and each
exchange on which the Common Stock is listed, at the earliest time that such
listing may be obtained in accordance with the rules and regulations of The
Nasdaq Stock Market and the exchange and maintain such listing until the seventh
anniversary of the date of original issuance of this Warrant.

     9.   REPLACEMENT OF WARRANTS. Upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and (in the case of loss, theft or destruction) upon delivery of an
indemnity agreement (with surety if reasonably required) in an amount reasonably
satisfactory to the Company, or (in the case of mutilation) upon surrender and
cancellation of this Warrant, the Company will issue, in lieu thereof, a new
Warrant of like tenor.

     10.  TRANSFERS.

     (a)  The Company will maintain a register containing the names and address
of Registered Holder. Registered Holder may change its address as shown on the
warrant register by written notice to the Company requesting such change.

     (b)  Until any transfer of this Warrant is made in the warrant register,
the Company may treat Registered Holder as the absolute owner hereof for all
purposes, provided, however, that if and when this Warrant is properly assigned
in blank, the Company may (but shall not be obligated to) treat the bearer
hereof as the absolute owner hereof for all purposes, notwithstanding any notice
to the contrary

     11.  NO RIGHTS AS STOCKHOLDER. Until the exercise of this Warrant,
Registered Holder shall not have or exercise any rights by virtue hereof as a
stockholder of the Company.

     12.  SUCCESSORS. The rights and obligations of the parties to this Warrant
will inure to the benefit of and be binding upon the parties hereto and their
respective heirs, successors,, assigns, pledgees, transferees and purchasers-
Without limiting the foregoing, the registration rights set forth in this
Warrant shall inure to the benefit of Registered Holder and Registered Holder's
successors, heirs, pledgees, assignees, transferees and purchasers of this
Warrant and the Warrant Shares.

     13.  CHANGE OR WAIVER. Any term, of this Warrant may be changed or waived
only by an instrument in writing signed by the party against which enforcement
of the change or waiver is sought.

     14.  HEADINGS. The headings in this Warrant are for purposes of reference
only and shall not limit or otherwise affect the meaning of any provision of
this Warrant.

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     15.  GOVERNING LAW. This Warrant shall be governed by and construed in
accordance with the laws of the State of Florida as such laws are applied to
contracts made and to be fully performed entirely within that state between
residents of that state.

     16.  JURISDICTION AND VENUE. The Company and Registered Holder (1) agree
that any legal suit, action or proceeding arising out of or relating to this
Warrant shall be instituted exclusively in New York State Supreme Court, County
of New York or in the United States District Court for the Southern District of
New York, (ii) waives any objection to the venue of any such suit, action or
proceeding and the right to assert that such forum is not a convenient forum for
such suit, action or proceeding, and (iii) irrevocably consent to the
jurisdiction of the New York State Supreme Court, County of New York, and the
United States District Court for the Southern District of New York in any such
suit, action or proceedings, and the Company and Registered Holder further agree
to accept and acknowledge service or any and all process which may be served in
any such suit, action or proceeding in New York State Supreme Court, County of
New York or in the United states District Court for the Southern District of New
York and agrees that serviced of process upon it mailed by certified mail to its
address shall be deemed in every respect effective service of process upon it in
any suit, action or proceeding

     17.  MAILING OF NOTICES ETC. All notices and other communications under
this Warrant (except payment) shall be in writing and shall be sufficiently
given if delivered to the addresses in person. by Federal Express or similar
receipt delivery, by facsimile delivery or, if mailed, postage prepaid, by
certified mail, return receipt requested, as follows:

          To Registered Holder:  Stetson Consulting
                                 Attn: David Stetson
                                 439 Centre Island Road
                                 Centre Island, New York 11771

          To the Company:        Stratus Services Group, Inc.
                                 Attn: J. Todd Raymond, Esq.
                                 500 Craig Road, Suite 201
                                 Manalapan, New Jersey 07726

Or to such other address as any of them, by notice to the other may designate
from time to time. Time shall be counted to or from, as the case may be, the
delivery in person or by mailing.

                                           STRATUS SERVICES GROUP, INC.

                                           By: /s/ Michael A. Maltzman
                                              ----------------------------------
                                               Michael A. Maltzman
                                               Chief Financial Officer<Page>

                                                                  EXHIBIT 10.2.1

                                      LEASE

                               K.R. HOLDINGS, INC.

                                              LANDLORD

                          STRATUS SERVICES GROUP, INC.

                                               TENANT

                                    PREMISES:

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<Table>
<S>                                                                         <C>
Article 1.DEMISED PREMISES AND TERM OF LEASE                                            Page 1
Article 2.CONDITION OF PREMISES                                                         Page 2
Article 3.BASIC RENT - INITIAL TERMS                                                    Page 2
Article 4.OPTION TO RENEW                                                               Page 3
Article 5.PAYMENT OF ADDITIONAL CHARGES                                                 Page 4
Article 6.MAINTENANCE AND REPAIRS                                                       Page 8
Article 7.COMPLIANCE WITH LAWS                                                         Page 10
Article 8.COMPLIANCE WITH TERMS OF MORTGAGE                                            Page 11
Article 9.NO ABATEMENT OF RENT                                                         Page 12
Article 10.INDEMNIFICATION                                                             Page 12
Article 11.ASSIGNMENT, SUBLETTING, ETC                                                 Page 14
Article 12.USE OF DEMISED PREMISES                                                     Page 15
Article 13.INSURANCE                                                                   Page 17
Article 14.ALTERATIONS BY TENANT                                                       Page 20
Article 15.SIGNS                                                                       Page 22
Article 16.DEFAULT                                                                     Page 23
Article 17.DAMAGE TO DEMISED PREMISES                                                  Page 28
Article 18.SUBORDINATION                                                               Page 30
Article 19.MECHANICS' LIENS                                                            Page 30
Article 20.CONDEMNATION                                                                Page 31
Article 21.CERTIFICATION BY TENANT                                                     Page 32
Article 22.PERFORMANCE BY LANDLORD                                                     Page 33
Article 23.INSPECTION BY LANDLORD                                                      Page 33
Article 24.PARKING                                                                     Page 34
Article 25.RETURN OF PREMISES IN GOOD CONDITION                                        Page 35
Article 26.SECURITY                                                                    Page 36
Article 27.ENVIRONMENTAL COMPLIANCE                                                    Page 37
Article 28.QUIET ENJOYMENT                                                             Page 45
Article 29.BROKERAGE                                                                   Page 46
Article 30.NO WAIVER                                                                   Page 46
Article 31.NOTICES                                                                     Page 47
Article 32.ENTIRE AGREEMENT                                                            Page 47
Article 33.ENFORCEABILITY                                                              Page 48
Article 34.ADDITIONAL RENTS                                                            Page 48
Article 35.CAPTIONS                                                                    Page 48
Article 36.BINDING EFFECT                                                              Page 49
Article 37.WAIVER OF COUNTERCLAIMS                                                     Page 49
Article 38.EXCUSE OF LANDLORD'S PERFORMANCE                                            Page 49
Article 39.NONLIABILITY OF LANDLORD                                                    Page 49
Article 40.TENANT'S TIME TO SUE                                                        Page 50
Article 41.USE OF PRONOUN                                                              Page 51
Article 42.STATUTORY REFERENCES                                                        Page 51
Article 43.HOLDING OVER.                                                               Page 51
Article 44.NO OPTION                                                                   Page 51
Article 45.RECORDING                                                                   Page 51
Article 46.TRANSFER BY LANDLORD                                                        Page 52
Article 47.RECOGNITION OF RIGHTS AND WAIVER OF PLAIN LANGUAGE LAW.                     Page 52
ARTICLE 48.EFFECTIVE DATE.                                                             Page 53
                                                                            Multi-Tenant Gross
</Table>

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     This Agreement of Lease made this       day of July 2002, by and between
K.R. HOLDINGS, INC., having a principal place of business located at 500 Craig
Road, PO Box 650, Manalapan, New Jersey 07726-0650 (hereinafter called
"Landlord"), STRATUS SERVICES GROUP, INC., A DELAWARE CORPORATION, having its
principal place of business at 500 CRAIG ROAD, MANALAPAN, NEW JERSEY 07726-0650,
(hereinafter called "Tenant").

     IN CONSIDERATION of the mutual promises and covenants herein contained, the
Landlord and Tenant agree as follows:

     ARTICLE 1. DEMISED PREMISES AND TERM OF LEASE

     1.01 Landlord, for and in consideration of the terms, covenants and
conditions herein contained, does hereby demise, lease and let to Tenant, and
Tenant does hereby hire and take from Landlord, subject to the terms, covenants
and conditions herein contained, 6,841 square feet of space, more or less in the
Building on lands and premises being known as 500 CRAIG ROAD, MANALAPAN, NEW
JERSEY as follows: (a) 4,620 square feet on the second floor of the building;
1,462 square feet of office space in the basement level; and 759 square feet of
storage space on the basement level. The demised portion of said land and
buildings are hereinafter collectively referred to as the "Premises" or the
"Demised Premises". The entire building, consisting of the Demised Premises and
all other space shall be referred to as the "Building". The Building and
surrounding areas shall be referred to as the "Property". "Common Areas" refers
to the areas, parking lots, or portion of the Building or Property not dedicated
to the exclusive use or any one Tenant.

     1.02 Unless otherwise provided herein, any statement of square footage set
forth in this lease, or which may have been used in calculating rental, is an
approximation which Landlord and Tenant agree is reasonable, and the basic and
additional rental based thereon is not subject to revision if the actual square
footage is more or less.

     1.03 For purposes of this lease, Tenant's pro rata share shall, with regard
to the Premises, be 100%; with regard to the Property, Tenant's pro rata share
shall be 22.17%.

     1.04 The term of this Lease shall be for five (5) years (hereinafter called
the "Term"), commencing on October 1, 2002 ("Commencement Date"), and expiring
on September 30, 2007.

     1.05 Use of the Second Floor Conference Room. Tenant, shall, subject to
availability and Landlord's prior written consent, which consent shall not be
unreasonably withheld, conditioned or delayed, have the reasonable right to
utilize the Second Floor Conference Room from time to time. Tenant shall request
the use of said conference room in writing at least 24 hours in advance, stating
whether it requires use of the room for an entire day or for part thereof.
Tenant shall utilize only its own telecommunication equipment and shall be
responsible for returning the conference room after each use in clean condition
and good order.

     1.06 AUDITORIUM. The Tenant shall, subject to availability and the
Landlord's prior written consent, which consent shall not be unreasonably
withheld, conditioned or delayed, have

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the right to utilize the basement auditorium room. Each request to utilize the
Auditorium shall be made in writing at least 30 days prior to the event date and
shall state if it requires the room for the whole day or for part thereof.
Rental rates for the Auditorium shall be $600 if reserved for the whole day or
$100 per hour for partial days. The Tenant shall be responsible for returning
the Auditorium after each use in clean condition and good order.

     Each request for Auditorium use shall state (a) proposed date and hours of
use; (b) the nature of the proposed function; (c) the number of anticipated
attendees. If the Auditorium use will involve more than 20 attendees, Landlord
may require as a condition of such use that Tenant arrange off site parking for
the function attendees.

     1.07 EARLY ACCESS TO BASEMENT SPACE: After execution of this lease and so
long as Tenant is not in default under the terms of either this lease or the
terms of the Tenant's existing lease with Landlord, Tenant shall have the right
to enter the portion of the Demised Space on the basement level and to use and
occupy same (the "Early Occupancy"). The Tenant shall have the right to remove
the cabinets and divider walls in the basement space, so long as same is done in
good and workmanlike fashion, in compliance with all applicable laws and in
compliance with the other provisions of this Lease. All terms of this Lease
shall apply during said period of Early Occupancy, except that payment of Basic
Rental under this Lease shall not commence until October 1, 2002.

     ARTICLE 2. CONDITION OF PREMISES

     2.01 Except as specifically set forth herein, neither Landlord nor any of
Landlord's agents has made any representations, warranties or promises, express
or implied, of any nature, including, without limitation, any representation or
warranty as to the Property's merchantability or fitness for use. Except as set
forth herein, Tenant represents and agrees that it has had ample and full
opportunity to inspect the Premises (and as applicable the Property) prior to
the execution of this Lease, and the execution of this Lease by Tenant shall be
conclusive evidence as against Tenant that the Premises (and as applicable the
Property) are satisfactory to Tenant as of the date of signing hereof.

     2.02 It is understood and agreed that Landlord makes no representation or
warranty, either express or implied, with respect to the zoning or other
municipal ordinances applicable to the Property. Without limiting the generality
of the foregoing, Landlord makes no representation or warranty, either express
or implied, as to whether applicable zoning and other ordinances permit the use
of Premises for the purposes set forth and contemplated in this Lease.

     ARTICLE 3. BASIC RENT - INITIAL TERMS

     3.01 Tenant agrees to pay to Landlord promptly when due, without notice or
demand, and without deduction or set-off of any kind or amount for any reason
whatsoever the sum of $785,281.12 as basic rental for the initial Term of this
Lease.

     The basic rent shall be payable in successive monthly installments as
follows:

<Table>
<Caption>
Lease Period                             Base Annual Rental     Monthly Installments
------------------------------------------------------------------------------------
<S>                                         <C>                     <C>
October 1, 2002 - September 30, 2003        $136,835.04             $11,402.92
October 1, 2003-September 30, 2004          $155,460.00             $12,955.00
October 1, 2004-September 2005              $155,840.04             $12,986.67
October 1, 2005-September 30, 2006          $168,383.04             $14,031.92
October 1, 2006-September 30, 2007          $168,763.08             $14,063.59
</Table>

Page 4
<Page>

Rent is due on or before the first of each month, in advance. Time is of the
Essence for payment of rental and additional rental. Said base rent shall be
payable at the office of the Landlord above set forth, or at such other place as
the Landlord shall designate by notice in the manner hereinafter provided.

     3.02 Tenant hereby acknowledges that late payment to Landlord of rent or
other sums due hereunder will cause Landlord to incur costs not contemplated by
this Lease, the exact amount of which will be extremely difficult to ascertain.
If any rent or other sums due from Tenant is not received by Landlord within ten
(10) days after its due date, then Tenant shall pay to Landlord a late charge
equal to five percent (5%) of such overdue amount, plus costs and reasonable
attorneys' fees, if any, incurred by Landlord to collect amounts due from
Tenant. The parties hereby agree that such late charges represent fair and
reasonable estimate of the cost that Landlord will incur by reason of Tenant's
late payment. Landlord's acceptance of such late charges shall not constitute a
waiver of Tenant's default with respect to such overdue amount or estop Landlord
from exercising any of the other rights and remedies provided under this Lease
or at law.

ARTICLE 4. OPTION TO RENEW

     4.01 The Tenant shall have, subject to the terms set forth below, one
option to renew the lease for an additional term of five years.

     4.02 Said option shall be strictly contingent upon:

     (1) Tenant's not being in default under the lease at the time of the
exercise of the option;

     (2) Tenant's not having been in any material default at any time during the
lease term;

     (3) Actual receipt by the Landlord no later than November 30, 2006 of
Tenant's written notice of the exercise of such option, Time being of the
Essence;

     (4) Agreement between Landlord and Tenant no later than January 15, 2007 of
a new basic rental. In the event the parties cannot so agree, the lease shall
terminate on September 30, 2007.

     4.03 The Tenant acknowledges that if Tenant is notified that any of the
above conditions have not been met, the option shall automatically expire.
Options, if there are more than one, may only be exercised consecutively.
Failure to exercise an option terminates that and all subsequent options.
Failure to exercise in strict compliance with Section 4.02 shall be conclusively
presumed to be an irrevocable election by the Tenant to not exercise the option.
An option, once exercised, may not be rescinded.

     4.04 The options are personal to the Tenant and may not be assigned or
exercised by anyone other than the Tenant and only while Tenant is in full
possession of the Premises.

     4.05 Upon payment of the first month's rent for the renewal term, the
Tenant shall also pay an amount sufficient to bring the security deposit held by
Landlord to an amount equal to two months of the newly calculated monthly basic
rental.

     4.06 All other terms and conditions of the initial Lease shall apply during
the renewal term.

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ARTICLE 5. COMMON AREAS; PAYMENT OF OPERATIONAL CHARGES, TAXES UTILITIES AND
           OTHER EXPENSES

     5.01 Common Areas:

     (a) Definition: "Common Areas" are all areas and facilities outside the
Premises and within the exterior boundary line of the Property and interior
utility raceways within the Premises that are provided and designated by the
Landlord from time to time for the general use of Landlord, Tenant, and other
tenants of the Property and their respective employees suppliers, shippers,
tenants, contractors, and invitees.

     (b) Tenant's Rights. Landlord hereby grants to Tenant, for the benefit of
Tenant and its employees, suppliers, shippers, contractors, customers and
invitees, during the Term of this Lease, the non-exclusive right to use, in
common with others entitled to such use, the Common Areas as they exist from
time to time, subject to any rights, powers, and privileges reserved by Landlord
under the terms hereof or under the terms of any rules and regulations or
covenants, conditions and restrictions governing the use of the Property. The
Landlord shall not be responsible for the security of the Common Areas.

     (c) Rules and Regulations. Landlord shall have the right, from time to
time, to establish, modify, amend and enforce reasonable Rules and Regulations
with respect thereto.

     (d) Common Area Changes. Landlord shall have the right, in Landlord's sole
discretion, from time to time to perform the following, provided the same do not
unreasonably interfere with Tenant's use of, occupancy of or access to the
Premises:

          (i) To make changes to the Common Areas, including, without
limitation, changes in the locations, size, shape and number of driveways,
entrances, parking spaces, parking areas, loading and unloading areas, ingress,
egress, direction of traffic, landscaped areas, walkways and utility raceways
except Landlord shall use good faith efforts to ensure that any said change to
the parking areas, loading and unloading areas, or ingress and egress shall not
unreasonably interfere with Tenant's ability to utilize the Demised Premises.

               (ii) To close temporarily any of the Common Areas for maintenance
purposes so long as reasonable access to the Premises remains available;

               (iii) To use the Common Areas while engaged in making additional
improvements, repairs or alterations to the Property or any portion thereof; and

               (iv) To do and perform such other acts and make such other
changes in, to or with respect to the Common Areas and the Property as Landlord
may, in the exercise of sound business judgment deem to be appropriate.

     5.02 Operating Expenses. Tenant shall as additional rent pay to Landlord in
addition to the Base Rent and any other charges under the Lease Tenant's Pro
Rata Share of all Operating Expenses in accordance with the following
provisions:

          (a) "Operating Expenses" are all costs incurred by Landlord relating
to the ownership and operation of the Property, including, but not limited to,
the following:

               (i) The operation, repair, maintenance and replacement in neat,
clean, good order and condition of the Common Areas, including parking areas,
loading and unloading areas, trash areas, roadways, sidewalks, walkways,
parkways, driveways, landscaped areas, striping, bumpers, irrigation systems,
drainage systems, lighting facilities, fences and gates, exterior signs and
Tenant directories;

               (ii) Water, gas, electricity, telephone and the utilities
servicing the Common Areas, if any;

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               (iii) Snow removal (subject to other provisions of this Lease);

               (iv) Premiums for the insurance policies maintained by Landlord
pursuant to this Lease subject to other provisions herein;

               (v) Monthly amortization of capital improvements to the Common
Areas and the Building. The monthly amortization of any given capital
improvement shall be the sum of the quotient obtained by dividing the cost of
the capital improvement by Landlord's reasonable estimate, based upon generally
accepted accounting principles, of the number of months of useful life of such
improvement.

               (vi) Maintenance of the Building including, but not limited to,
painting, caulking and repair and replacement of the roof, building systems and
components, including, but not limited to, fire detection and sprinkler systems;

               (vii) Heating, ventilating and air conditioning systems ("HVAC")
as provided otherwise herein;

               (viii) Any expense (including Landlord's profit) incurred by
Landlord in performing construction, maintenance, repair, or replacement work
for or on Tenant's behalf.

          (b) If more than one Tenant is in the Property and to the extent
Landlord shall determine, in its reasonable discretion, that any of the
Operating Expenses shall have been incurred solely for the benefit of Tenant or
otherwise solely or substantially as a result of Tenant's use of the Premises,
Landlord shall have the right to require that such Operating Expenses be borne
solely by the Tenant.

          (c) The inclusion of the improvements, facilities and services set
forth in paragraphs 5.01 and 5.02 shall not be deemed to impose any obligation
upon Landlord to either have said improvements or facilities or to provide those
services.

     5.03 Taxes and Assessments. The Tenant agrees that it will, throughout the
Term, pay and discharge as additional rent punctually as and when the same shall
become due and payable, and before any fine, penalty, interest or cost may be
added thereto for the nonpayment there of its Pro Rata Share of ANY INCREASE
OVER THE BASE CALENDAR year 2001 of the following charges:

          (a) All real estate taxes and all general and special assessments
payable and/or levied or assessed against the Property or any portion thereof
during the Term.

          (b) If at any time during the Term, the methods of taxation prevailing
at the commencement date shall be altered so as to cause the whole or any part
to the taxes and assessments now or hereafter levied, assessed or imposed on
real estate and the improvements thereon, to be levied, assessed or imposed,
wholly or partially, as a capital levy on the rents received therefrom, or
otherwise, then such taxes, assessments, or levies shall be deemed to be
included within the term "real estate taxes" for the purposes hereof, and Tenant
shall pay and discharge same as herein provided in respect of real estate taxes;

          (c) All personal property taxes payable and/or levied, assessed or
imposed upon or against the Premises, or any portion thereof, under this Lease
during the term hereof. It is intended by the parties hereto that the Landlord
shall be free from all such personal property taxes; and

          (d) In addition to the foregoing, Tenant shall pay and discharge as
additional rent punctually as and when the same shall become due and payable,
and before any fine, penalty, interest or cost may be added thereto for
nonpayment thereof, its pro rata share of each and every item of cost or
expense, of every kind and nature whatsoever (the "Impositions"), including,
without limiting the generality of the foregoing, all taxes, assessments
(including, but not limited to, assessments for public improvements or
benefits), and all other governmental impositions and

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charges of every kind and nature whatsoever, whether or not now customary or
within the contemplation of the parties hereto and regardless of whether the
same shall be extraordinary or ordinary, general, or special, unforeseen or
foreseen or similar or dissimilar to any of the foregoing, payable and/or
levied, assessed or imposed upon or against the Property, or any portion
thereof, or any interest of the Landlord or Tenant therein or under this Lease
during the Term hereof. It is intended by the parties hereto that the Landlord
shall be free from all such expenses and all such personal property taxes or any
other taxes, assessments and all other impositions and charges of every kind and
nature whatsoever, and that this Lease shall yield to the Landlord not less than
the annual basic rent (as adjusted) reserved hereunder throughout the term
hereof.

          (e) Notwithstanding anything contained herein to the contrary, Tenant
shall not be obligated to pay any portion of Landlord's franchise, or income
tax.

     5.04 If as a result of Tenant's use, alterations or improvements to the
Premises the real estate taxes assessed against the Building or Property
increase, Tenant shall be responsible for the amount of such increase as
additional rent.

     5.05 Certain Insurance Costs.

     Tenant agrees, in regard to its use of the demised premises, at its sole
cost and expense, to promptly comply with all of the rules and regulations of
the Fire Insurance Rating Organization having jurisdiction, or any similar body.
If, at any time, as a result of or in connection with any failure by Tenant to
comply with the foregoing provision, or as a result of any act of omission or
commission by Tenant, its employees, agents, contractors, invitees, licensees or
subtenants, or as a result of or in connection with the use to which the
Premises are put, notwithstanding that such use may be for the purpose herein
permitted or that such use may have been consented to by Landlord, any insurance
rate applicable to the Building and/or to the contents thereof, shall be higher
than that which would be applicable for the least hazardous types of occupancy
legally permitted therein, then and in any of such events, Landlord shall have
the right to require Tenant to pay such additional premiums for all insurance
policies in force with respect to the Building. Tenant shall not use nor install
any electrical equipment that overloads the lines in the Building and Tenant, at
its sole cost and expense, shall promptly make whatever changes are necessary to
prevent or remedy such condition and to comply with all requirements of
Landlord, the Board of Fire Insurance Underwriters or any similarly body and any
governmental authority having jurisdiction thereof. For the purposes of this
Paragraph, any finding or schedule of the Fire Insurance Rating Organization or
any similarly organization having jurisdiction shall be deemed to be
conclusively binding on the parties hereto.

     5.06 It is the purpose and intent of the Landlord and Tenant that the Base
Rent, and additional payments herein provided for, shall be absolutely net to
the Landlord so that this Lease shall yield net to the Landlord the Basic Rent
specified in Article 3 hereof, without any deduction therefrom, for any of the
charges payable herein by Tenant.

     5.07 At Landlord's option, Tenant's Additional Rentals hereunder (i.e.
taxes, common charges, etc.) required shall be paid on a monthly basis with and
in addition to the Base Rent in an amount equal to 1/12 of the estimated sum
required to be paid annually as Additional Rent. Said additional rents shall be
paid monthly with the basic rental. At the end of each base year there shall be
an adjustment, (the first such adjustment being based on September 30, 2003)
between the Landlord and Tenant with respect to any Additional Rent paid with
payment to or repayment by Landlord as the case may require to the end that
Landlord shall receive the entire amount of Additional Rent to be paid by Tenant
for the year in question. Tenant shall have the

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right to request within 30 days of reciept of any invoice a written itemization
of all charges made by Landlord as Additional Rentals, and within thirty days of
the receipt of such itemization to audit and inspect the books and records
related thereto upon reasonable notice to landlord. If Tenant fails to request
such itemization or to conduct such audit within the time frames set forth
above, time being of the essence for same.

     5.08 Security Measures

     Tenant acknowledges that the rental payment to Landlord hereunder does not
include the cost of guard service or other security measures. Landlord has no
obligation to provide same. Tenant assumes all responsibility for the protection
of the Premises, Tenant, its agents and invitees and their property from the
acts of third parties.

     5.09 Utility Charges:

     The parties agree that the base rental includes a charge of $1.50 per
square foot for Tenant Electric.

     Tenant shall be solely responsible for the payment of any separately
metered utilities supplied to the Demised Premises and any utility services
installed at Tenant's request. If any utility service is common to two or more
tenants, Tenant shall pay for its proportionate share of same based upon a ratio
created from a comparison of the Tenant's space to the approximate square
footage let to all such common uses.

     ARTICLE 6. MAINTENANCE AND REPAIRS

     6.01 Landlord's Responsibility

     Except as set forth herein or necessitated by the negligence or willful
actions of Tenant, its agents, employees, representatives, guests or invitees,
Landlord shall be responsible for replacement and repairs of the Common Areas,
the roof and the structural aspects of the building.

     6.02 Tenant's Responsibility

     Except as set forth above, Tenant assumes the sole responsibility for the
condition, operation, maintenance and repair of the Premises. Tenant shall take
good care of the Premises, and shall keep the Premises and all parts thereof,
including, without limiting the generality thereof, non load-bearing walls,
floors, and appurtenances to the buildings, together with any and all
alterations, additions and improvements therein or thereto, clean and free of
debris, in good order and condition and repair, suffering no waste or injury and
shall, at Tenant's sole cost and expense, promptly make all needed repairs,
replacements to the Demised Premises, when necessary (whether or not such
portion of the Premises requiring repair, or the means of repairing the same,
are reasonable or readily accessible to Tenant and whether or not the need for
such repairs occurs as a result of Tenant's use, any prior use, the elements or
the age of such portion of the Premises). All repairs, replacements, renewals,
and all other property attached to or used in connection with the Premises by or
on behalf of Tenant shall, subject to the provisions of Article 25 hereof,
immediately upon the completion or installation thereof, be and become the
property of Landlord without payment therefore by Landlord and shall be
surrendered to Landlord upon the expiration or earlier termination of the Term.

     Landlord may, at its option, perform snow removal for the parking lot and
access roads at Tenant's expense. If such areas are common to two or more
tenants, Tenant shall pay its pro rata cost of same as additional rent.

     ARTICLE 7. COMPLIANCE WITH LAWS

     7.01 Tenant shall, through the term and at no expense whatsoever to
Landlord, promptly comply or cause compliance, with all laws, ordinances,
orders, rules, regulations and requirements of all Federal, State, county and
municipal governments applicable to the Property

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both ordinary and extraordinary, and whether or not the same shall presently be
within the contemplation of the parties hereto or shall involve any change of
governmental policy, and shall comply with the requirements of the Board of Fire
Underwriters or similar body having jurisdiction over the Premises. Tenant shall
also comply with the requirements of all policies of public liability and other
insurance from time to time in effect with respect to the Premises. Without
limiting the generality of the foregoing, Tenant shall, at its sole cost and
expense, make all repairs, replacements, and renewals, ordinary and
extraordinary, foreseen and unforeseen, necessary or required for compliance
with the aforesaid laws, ordinances, orders, rules, regulations and
requirements. Tenant shall be solely responsible for complying with any
requirements of the Americans with Disabilities Act as same applies to the
Premises.

     Tenant may contest the application or validity of any such law, ordinance,
order, rule, regulation or requirement at its own expense and Landlord shall
cooperate with such contest and execute any necessary documentation therefore.

     ARTICLE 8. COMPLIANCE WITH TERMS OF MORTGAGE/MORTGAGEE'S RIGHTS

     8.01 Tenant agrees that it will abide by the provisions of any mortgage or
mortgages heretofore or hereafter placed upon the Premises by Landlord provided
that such mortgage does not materially increase the obligations undertaken by
Tenant pursuant to this Lease.

     8.02 This Lease shall be subject to the approval of Landlord's mortgage
holder.

     8.03 If Landlord shall notify Tenant that the Demised Premises or the
Property are encumbered by a Mortgage and in such notice set forth the name and
address of the Mortgagee thereof then, notwithstanding anything to the contrary,
no notice intended for Landlord shall be deemed properly given unless a copy
thereof is simultaneously sent to such Mortgagee by certified or registered
mail, return receipt requested. If any Mortgagee shall perform any obligation
that Landlord is required to perform hereunder, such performance by Mortgagee,
insofar as Tenant is concerned, shall be deemed performance on behalf of
Landlord and shall be accepted by Tenant as if performed by Landlord.

     8.04 In addition, if Tenant is given the right, pursuant to this Lease, to
terminate this Lease as a result of a default of Landlord, no such termination
shall be effective unless and until Tenant has sent a notice [in addition to any
notice sent pursuant to subsection 8.03] of its intention to so terminate this
Lease to such Mortgagee and the Mortgagee has failed to cure such default within
thirty (30) days after receipt of such notice, or in case the default shall be
of such nature that it cannot be cured within said period of thirty (30) days,
then if the Mortgagee shall fail, within said period of thirty (30) days, to
commence the cure of such default and thereafter to complete such cure with due
diligence.

     ARTICLE 9. NO ABATEMENT OF RENT

     Except as hereinafter expressly provided, no abatement, diminution or
reduction of the basic rent, or other charges required to be paid by Tenant
pursuant to the terms of this Lease, shall be claimed by, or allowed to Tenant
for any reason.

     ARTICLE 10. INDEMNIFICATION

     10.01 Except to the extent same arises from Landlord's gross negligence or
intentional wrongful act or the gross negligence or intentional wrongful act of
landlord, employees, agents, servants, contractors, invitees or licensees,
Tenant covenants and agrees, at its sole cost and expense, to indemnify Landlord
and save Landlord harmless to the maximum extent permitted by law against and
from any and all claims by or on behalf of any person, firm or corporation,
resulting or arising from (i) the possession, use, conduct or management of the
Premises or

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Tenant's business, or (ii) work or anything whatsoever done in or
about the Property, by Tenant, its agents, servants, employees, licensees,
invitees or independent contractors, (iii) any and all claims arising from any
condition of, on or at the Premises, (iv) any breach or default on the part of
Tenant in the performance of any covenant or agreement on the part of Tenant to
be performed, pursuant to the terms of this Lease, (v) any negligence,
intentional act, or omission to act of Tenant, or any action of its agents,
servants, employees, licensees, invitees or independent contractors on its
behalf, or (vi) any accident, injury or damage whatsoever during the term of
this Lease or during Tenant's occupancy arising from the use, conduct or
management of or from any work or thing whatsoever done in or about the
Premises, or upon or under any sidewalk, street, parking area, alley, curb,
passageway, space and/or land adjacent thereto, This indemnity and hold harmless
shall include but not be limited to, reasonable attorneys' fees, incurred in,
about or by reason of any such claim or action or proceeding brought thereon
(through all levels of appeal). In the event any action or proceeding is brought
against Landlord other than by Tenant by reason of any such claim, Tenant, upon
notice from Landlord, covenants to resist or defend such action or proceeding by
counsel satisfactory to Landlord (counsel for Tenant's insurance carrier will be
deemed satisfactory). Landlord will not separately defend such action as long as
Tenant is diligently doing so. In the event of any such proceeding, Landlord
shall give prompt notice of same to Tenant, shall provide Tenant or Tenant's
counsel with copies of all relevant documentation and will not settle any such
claim without Tenant's written consent.

     10.02 In the event Landlord is ultimately the successful recovering party,
Tenant further covenants and agrees to pay, and to indemnify and hold Landlord
harmless against, all costs, expenses, and charges, including, but not limited
to, reasonable attorneys' fees, incurred (including all levels of appeal) in (a)
obtaining possession of the Premises after default by Tenant or upon the
expiration or earlier termination of the Term, or (b) in enforcing any covenant
or agreement of Tenant herein contained, or prosecuting or defending any action
relating to or arising out of this Agreement or the Land lord-Tenant
relationship, or (d) collecting upon or enforcing any judgment in favor of
Landlord and against Tenant. Landlord shall be entitled to attorney's fees,
costs and expenses incurred in preparation and service of notices of Default and
consultations in connection therewith, whether or not a legal action is
subsequently commenced in connection with such Default or resulting breach.
Tenant shall reimburse Landlord on demand for all reasonable legal, engineering
and other professional services expenses incurred by Landlord in connection with
all requests by Tenant for any consent or approval under this Lease.

     10.03 Except as same arises from the willful misconduct or gross negligence
of Landlord, its employees, agents, servant's, contractors, invitees or
licensees, Tenant further agrees to be responsible for, and hereby relieves
Landlord from any and all liability by reason of any injury or damage to any
person or to any property on the Premises, whether belonging to Tenant or any
other persons, regardless of cause including but not limited to any casualty or
the breakage or leakage in any part or portion of the Premises, or from water,
rain or snow which may leak into, issue or flow from, any part of the Premises
from the drains, pipes or plumbing work of the same, or from any place or
quarter. In no event shall Landlord be liable to Tenant for any loss or damage
caused or suffered or resulting from any casualty to Premises from steam,
electricity, gas, water, ice or snow or any leak or flow.

     ARTICLE 11. ASSIGNMENT, SUBLETTING, ETC.

     Tenant shall not, either voluntarily or involuntarily, by operation of law
or otherwise, assign, transfer, mortgage or otherwise encumber this Lease (or
the Security Deposit), or sublet the whole or any part of the Premises or permit
the Premises, or any part thereof, to be used or

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occupied by others for any purpose, without the prior written consent of
Landlord which consent shall not be unreasonably conditioned, withheld or
delayed, and any such action by Tenant (or attempted action) without Landlord's
written consent shall be void and unenforceable against Landlord. Tenant
acknowledges that any such consent of Landlord shall be strictly conditioned
upon payment over to Landlord of any basic rental paid on the sublease in excess
of the basic rental payable by the Tenant hereunder.

     Notwithstanding Landlord's consent no transfer, or subletting shall be
effective unless and until (x) Tenant gives notice thereof to Landlord, and (y)
the transferee, assignee or sublessee shall deliver to Landlord (1) a written
agreement in the form and substance satisfactory to Landlord pursuant to which
the transferee, assignee or sublessee assumes all of the obligations and
liability of Tenant under this Lease, and (2) a copy of the assignment agreement
or sublease.

     A restructuring, reorganization, sale of substantially all of the assets,
merger, recapitalization by Tenant (each, a "Recapitalization") shall be deemed
a transfer, assignment or subletting under this Section, requiring Landlord's
prior written consent, which consent shall not be unreasonably withheld,
conditioned or delayed, (failure to obtain which shall, in addition to the
foregoing, give Landlord the right to terminate this Lease and shall constitute
a Default hereunder) if Tenant's tangible net worth (as determined under
generally accepted accounting principles consistently maintained but without
taking into account any increases in the book value of Tenant's assets or
recognition of gain or intangible assets resulting from such Recapitalization)
is reduced significantly as a result thereof.

     No assignment or sublease shall relieve Tenant of its obligations to
Landlord under this Lease.

     ARTICLE 12. USE OF DEMISED PREMISES

     (a) GENERAL USE.

     Tenant shall use the Premises for general business purposes and for
business offices and for no other purpose. Tenant shall have use of the Demised
Premises during normal business hours of 8:00 a.m. to 6:00 p.m., Monday through
Friday (excluding State and Federal Holidays). Tenant shall pay Landlord as
additional rental all reasonable costs of Landlord related to any operation
beyond such hours. Tenant agrees that it will not use or permit to be used the
Premises or any part thereof for any dangerous, excessively noisy, noxious or
offensive trade or business and will not cause or maintain, or permit the
maintenance of any nuisance in or upon the Property. Tenant agrees that it will
not use or permit to be used at the Premises or any part thereof, any use which
may affect the ability of the Landlord to sell the Premises. Tenant will not
suffer or permit the Premises, or any portion thereof, to be used by the public,
as such, in any way as might tend to impair Landlord's title thereto. Tenant
shall not service, maintain or repair vehicles on the Premises, or the Property.
Tenant shall not place, permit or store foods, pallets, drums or any other
materials outside the Premises or in the common areas.

     (b) TENANT TO KEEP THE PREMISES CLEAN.

     The Tenant shall, at all times during the Lease Term: (i) keep the Premises
in neat and clean condition; (ii) promptly remove all waste, garbage and refuse
from the Premises; (iii) promptly comply with all laws and ordinances and all
rules and regulations of any authority affecting the Premises or the
cleanliness, safety, use and occupancy thereof; (iv) prevent the escape from the
Premises of fumes, odors or other substances which are offensive or may
constitute a nuisance or interfere with other tenants. Tenant shall utilize at
its own cost and expense Bailey's Square Janitorial Service (or such other
cleaning service designated by Landlord from time to time) to clean the
Premises.

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     (c) TENANT'S NEGATIVE COVENANTS.

     The Tenant shall not, (i) conduct or permit any fire, bankruptcy or auction
sale at the Premises; (ii) change the exterior color of the Premises or
Building, or any part thereof, or the color, size, location or composition of
any sign, symbol or advertisement that may have been approved by the Landlord;
(iii) park, operate, load or unload, any truck or other delivery vehicle at any
place other than the loading area designed for the Tenant's use; (iv) use the
plumbing facilities for any purpose other than that for which impairs the
operation of such facilities; (v) install any exterior lighting or amplifiers or
similar devices, or use any other broadcast devise which may be heard or
experienced outside the Premises, such as loudspeakers, phonographs, or radio
broadcasts; (vi) deface any portion of the Premises or Building; (vii) permit
any rubbish or garbage to accumulate in the Premises, or any part of the
Building or Property except in a properly located receptacle; (viii) place or
maintain any merchandise, trash refuse or other articles in any vestibule or
entry of the Premises, on the foot walks or corridors adjacent thereto, or
elsewhere on the exterior of the Premises so as to obstruct any driveway, foot
walk, parking area or any other Common Areas; (ix) place a load on the floor of
the Premises which exceeds the floor load per square foot the floor was designed
to carry; (x) install, operate or maintain any electrical equipment in the
Premises which shall not bear an underwriters approval; (xi) stack merchandise
or materials against the walls, so as to create a load or weight factor upon the
walls, or to tie in, Tenant's racking systems with such walls, nor the hanging
of equipment from (or otherwise loading) the roof or structural members of the
Building without express written consent of the Landlord; or (v) permit the use
or occupancy of the Demised Premises in a manner which will in any way violate
any Certificate of Occupancy affecting the Demised Premises or make void or
voidable any insurance then in force with respect thereto, or which will make
impossible to obtain fire or other insurance required to be furnished by the
Tenant hereunder, at regular rates, or which will cause or be likely to cause
structural damage to the Premises or any part thereof, or which will constitute
a public or private nuisance, or which would adversely affect the value thereof.

     (d) LANDLORD'S RULES AND REGULATIONS.

     The parties acknowledge that the Landlord has not promulagated written
rules and regulations at this time, but reserves the right to promulgate same in
the future so long as such rules are not inconsistent with the provisions of
this Lease or rights granted to Tenant hereunder. Tenant agrees that it will
abide by, and to cause its employees, suppliers, shippers, customers, tenants,
contractors and invitees to abide by all reasonable rules and regulations which
Landlord may make from time to time for the management, safety, care and
cleanliness of the Common Areas, the parking and unloading of vehicles and the
preservation of good order, as well as for the convenience of other occupants or
tenants of the Property and their invitees. ("Rules and Regulations"). Landlord
shall not be responsible to Tenant for the noncompliance within said Rules and
Regulations by other tenants of the Property.

     ARTICLE 13. INSURANCE

     13.01 Tenant shall, throughout the Term, maintain the following policies of
insurance:

     (a) Tenant agrees to obtain and keep in full force and effect, at all times
during the Term, at its sole cost and expense, policies of insurance insuring
all improvements, alterations, additions, fixtures, personal property of Tenant
(or of others held or stored in the premises) and contents installed or owned by
Tenant in, on or at the Property, against fire, vandalism, riot, malicious
mischief, sprinkler leakage or other casualty with extended coverage, in amounts
equal

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to the full replacement value of such improvements, alterations, additions,
personal property of Tenant, fixtures and contents.

     (b) A policy of general public liability insurance covering claims for
personal injury or property damage, with such limits as may reasonably be
requested by Landlord from time to time, but not less than $1,000,000.00 in
respect of bodily injury or death to any one person, and of not less than
$3,000,000.00 in respect of bodily injury or death to more than one person in
one occurrence, and $250,000.00 for property damage. This policy shall be
Insurance Services Office, Inc. (ISO) form CG 0001 0196 or an equivalent
occurrence basis commercial general liability insurance form that is reasonably
acceptable to Landlord.

     (c) Against such other hazards and in such amounts as Landlord or the
holder of any mortgage to which this Lease is subordinate or which is a lien on
the Demised Premises may reasonably require from time to time provided that such
insurance is available at a reasonable cost and commonly insured against in the
case of premises and buildings of like kind.

     (d) Tenant shall also carry rental value insurance in the amount of one
year's Base Rent, estimated Additional Rent and insurance against such other
hazards and in such amounts as may be customarily carried by tenants, owners and
operators of similar properties as Landlord or its Lender may reasonably require
for its protection from time to time.

     13.02 All insurance provided for in this Lease shall be effected under
enforceable policies issued by insurers of recognized financial responsibility
licensed to do business in New Jersey; (ii) primary and noncontributory; (iii)
rated A VII or better by BEST'S KEY RATING GUIDE; and (iv) provide for
severability of interests. A certificate of each such insurance policy shall be
delivered to Landlord, at least fifteen (15) days prior to the expiration date
of any policy, a certification of the renewal policy for such insurance shall be
delivered by Tenant to Landlord. Upon demand Landlord shall be furnished with
satisfactory evidence of its payment.

     13.03 The liability insurance policies above described in Section 13.01,
(b) (c) and (d) shall name Landlord and/or mortgagee designated by Landlord, and
Tenant, as the insureds or additional insureds, as their respective interests
may appear. All other policies of insurance required hereunder shall name only
Landlord and the Tenant as the insureds or additional insureds, as their
interests may appear. Each policy of insurance shall provide that such policy
shall not be canceled without at least thirty (30) days prior written notice to
Landlord and any mortgagee designated by Landlord.

     13.04 All policies of insurance covering damage to the Demised Premises
shall provide that losses shall be payable notwithstanding any negligence of any
person, firm or corporation having an insurable interest in the Demised
Premises. To the extent of any loss covered by said policies of insurance,
Tenant and landlord each hereby releases the other from any and all liability to
it or anyone claiming through or under it by way of subrogation or otherwise for
any loss or damage caused by fire or any other of the extended coverage
casualties covered by said policies, even if such fire or other casualty shall
be brought about by the fault or negligence of Landlord, its agents, servants,
employees, licensees, invitees or independent contractors working on Landlord's
behalf. All of the aforesaid policies of insurance shall provide that the within
release shall not affect the validity of said policies or the right of Landlord
or Tenant, or any other named insured thereunder to recover thereunder.

     13.05 Any insurance required by this Article 13 may be effected by a
blanket policy of insurance, provided that any such blanket policy meets all of
the requirements of this Article 13.

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     ARTICLE 14. ALTERATIONS BY TENANT

     14.01 Tenant agrees that it will make no alterations, improvements or
additions to the Premises without the prior written consent of the Landlord.
Landlord agrees that it shall not unreasonably withhold, condition or delay its
consent with respect to nonstructural alterations, improvements or additions, to
the Premises for purposes contemplated by Article 12 hereof. With respect to
alterations, structural improvements, or additions (including those to the
electrical, plumbing, HVAC, wiring, or other mechanical systems), Landlord may
withhold or grant its consent on such terms and conditions as Landlord in its
sole discretion shall determine necessary and appropriate. It is understood and
agreed that, notwithstanding the foregoing, Landlord shall not be required to
consent to any alterations, improvements, or additions if at the time Tenant
requests such consent, Tenant is in default under the terms and provisions of
this Lease. All such alterations, improvements and additions to which Landlord
consents shall be performed in accordance with the following conditions:

     (a) No such alteration, improvement or addition shall be undertaken until
Tenant shall at its sole cost and expense procure and pay for all necessary
permits, licenses and other authorizations required for the lawful and proper
undertaking thereof. Landlord agrees to provide reasonable cooperation in
providing appropriate consent(s) or authorization(s) whenever such action is
necessary. Tenant shall provide the Landlord copies of all permits, approvals,
or licenses within two days of the date same are issued. Tenant shall upon the
completion of any alteration, improvement or addition provide the Landlord with
copies of all final approvals, certificates of occupancy, and as built plans for
all work performed.

     (b) Any such alteration, improvement or addition shall be made promptly and
in a good and workmanlike manner and in compliance with all applicable laws,
ordinances, orders, rules, regulations and requirements of all Federal, State,
and municipal governments and governmental agencies, and in accordance with the
applicable orders, rules and regulations of the cognizant Board of Fire
Underwriters or any other body hereafter exercising similar functions.

     (c) Tenant shall maintain, or cause to be maintained, (by all appropriate
individuals or entities including any contractors or subcontractors) at Tenant's
sole cost and expense, for the mutual benefit of Landlord and Tenant and any
mortgagee designated by Landlord, in reasonable amounts and with insurers
satisfactory to Landlord, general public liability insurance and workmen's
compensation insurance covering all persons employed in connection with such
work and with respect to whom death or injury claims could be asserted against
Landlord, Tenant, or the Premises, and shall prior to commencing such work
provide Landlord with a certificate of insurance from any contractors naming
Landlord and Tenant as additional insured.

     (d) All such alterations, improvements, or additions when completed shall
be of such a nature as not to reduce or otherwise adversely affect the value of
the Premises or any part thereof, to diminish the general utility or change
adversely the general character of the Premises or of such a nature as to
adversely affect the ability to obtain or cost of insurance for the premises.
All alterations, improvements and/or additions, made by Tenant with the
exception of Tenant's trade fixtures, shall remain upon the Premises at the
expiration or sooner termination of this Lease and shall, at such expiration or
sooner termination, become the property of Landlord, provided, however, that
Landlord shall have the right, upon the expiration or sooner termination of this
Lease, to require Tenant, at Tenant's sole cost and expense to remove any and
all such alterations, improvements and/or additions including any of Tenant's
trade fixtures and to require Tenant to restore the Premises to their condition
prior to the installation of any such alterations, improvements and/or
additions.

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     (e) If Tenant receives Landlord's unconditional written permission prior to
installation or performance of any alteration, Tenant shall not be required to
restore such altered portion of the Premises to their original condition.

     (f) Any request for approval by Tenant shall include, as appropriate,
architectural and engineering drawings, reports and any other items requested by
Landlord. With regard to structural items, Landlord shall have 45 days from the
actual receipt by Landlord to respond to a request for Landlord's consent. If
Tenant does not receive a response in such period, the Landlord will be deemed
to have not consented to same. Tenant further agrees to pay Landlord's
reasonable costs of reviewing any request for approval and inspecting the
installation of such improvements including, but not limited to legal,
engineering, architectural and other similar costs and fees.

     With regard to cosmetic items, Landlord will respond to Tenant within five
(5) days of the receipt by Landlord of a written request for Landlord's consent.
In the event a response is not provided to Tenant within such five (5) day
period, Landlord will be deemed to not have consented to such request.

     (g) Tenant acknowledges that Landlord's rights of approval and inspection
herein are for the sole benefit of Landlord and shall not be relied upon by the
Tenant as indicative of the propriety or quality of the construction or its
conformity to any code or standard.

     (h) Tenant agrees that in the event any inspection by Landlord discloses an
unapproved alteration, addition, or improvement, Tenant shall pay Landlord
reasonable costs of said inspection, but in no event less that $500. The
foregoing shall be in addition to all other rights of Landlord under this Lease
and available at law.

     ARTICLE 15. SIGNS

     Tenant will not place or suffer to be placed or maintained on any wall of
the Demised Premises any sign, or advertising matter, and will not place or
maintain any sign or advertising matter on the roof of the Premises without
first obtaining Landlord's written approval and consent, which consent shall not
be unreasonably conditioned, withheld or delayed. Tenant further agrees to
maintain any such sign or advertising matter as may be approved, in good
condition and repair at all times, and shall obtain any necessary government
approval therefore. Provided Tenant complies with all applicable laws, statutes,
ordinances and regulations, Tenant may place an outside identifying sign at the
Premises.

     ARTICLE 16. DEFAULT

     16.01 Each of the following shall be deemed a default by Tenant and a
breach of this Lease (regardless of the pendency of any bankruptcy,
reorganization, receivership, insolvency or other proceedings, in law, in
equity, or before any administrative tribunal, which has prevented or might
prevent compliance by Tenant with the terms of this Lease):

     (a) Failure by Tenant to pay, any installment of basic or additional rent
within ten (10) days after same shall be due and payable;

     (b) Failure by Tenant to observe or perform any of Tenant's non-monetary
covenants, agreements or obligations hereunder, (subject to a 20 day cure period
after notice from Landlord) or

     (c) The bankruptcy or insolvency of Tenant, or

     (d) The filing by Tenant, pursuant to any statute either of the United
States or of any State, or a petition for adjudication of Tenant as a bankrupt
or insolvent or for reorganization, or arrangement, or the appointment of a
receiver or trustee of all or any portion of Tenant's assets and/or property, or

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     (e) The filing against Tenant, pursuant to any statute either of the United
States or of any State, of a petition for adjudication of Tenant as a bankrupt
or insolvent or for reorganization, or arrangement, or the appointment of a
receiver or trustee of all or any portion of Tenant's assets and/or Tenant's
property which petition has not been dismissed by Tenant within forty-five (45)
days of the filing of same, or

     (f) The making by Tenant of an assignment for the benefit of creditors, or

     (g) The dissolution or commencement of any action or proceeding for the
dissolution or liquidation of Tenant, whether instituted by or against Tenant,
or

     (h) Failure of the Tenant to take possession of the Premises upon the
delivery of possession, or the abandonment or vacation of Premises by Tenant;

     (i) an uncured failure to pay rental or additional rental when due.

     In the event of any such default, Landlord shall have the right, at its
election, at any time thereafter, by notice to Tenant, to declare the term of
this Lease ended, and upon the date of termination set forth in such notice
(which shall be at least five (5) days after the giving of such notice), this
Lease and all the right, title and interest of Tenant hereunder shall terminate
and be of no further force and effect. Tenant shall have no further right to
cure any default between the date of notice from Landlord terminating this Lease
and the effective date specified in such notice.

     (j) If Tenant is a corporation and any part or all of its shares of stock
shall be transferred by sale, assignment, operation of law or other disposition
so as to result in a change in the present effective voting control of Tenant by
the person owning a majority of the shares of stock on the date of this Lease.

     16.02 Upon any such termination of this Lease, Tenant shall quit and
peacefully surrender the Premises to Landlord, and Landlord, upon and at any
time after such termination, may, without notice, reenter and repossess the
Premises and remove all persons and property therefrom, by summary proceedings
or other action, without being liable for any damages, or to prosecution or
other liability therefore. No such reentry by Landlord shall be deemed or
construed as a waiver of any of Landlord's rights against Tenant pursuant to
this Article or otherwise, nor shall such reentry be deemed an acceptance of a
surrender of this Lease.

     16.03 At any time, or from time to time, after any such termination of this
Lease, Landlord may, either in its own name or as agent of Tenant, relet the
Premises, or any part thereof, for such term of terms (which at Landlord's
option may be longer or shorter than the remainder of the Term), for such use or
purpose, and on such other terms and conditions as Landlord, in its discretion,
may determine and may collect and receive the rents therefore. Landlord may make
and perform such repairs, alterations, renovations and/or redecoration to
Premises as it, in its sole discretion, shall deem advisable in order to prepare
Premises for reletting and the making and performing of any such repairs,
alterations, renovation and/or redecoration shall not operate or be construed to
release Tenant from any of its liability or obligations under this Lease. Any
such reletting shall not release Tenant from any of its liability or obligation
hereunder. Landlord shall in no event be responsible or liable for any failure
to collect any rent due upon any reletting, and in no event, shall Tenant be
entitled to receive any excess of any rent or other sums paid in connection with
any such reletting (including any division of the Premises) over the sums
payable by Tenant to Landlord under this Lease.

     16.04 In the event of any such termination of this Lease as aforesaid,
whether or not the Premises, or any part thereof, shall have been relet, Tenant
shall pay to Landlord the Basic Rent required to be paid by Tenant up to the
time of such termination, and thereafter, Tenant, until the

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end of what would have been the Term in the absence of such termination, shall
be liable to Landlord for, and shall pay to Landlord, as and for liquidated and
agreed damages for Tenant's default, the following:

     (a) Landlord's reasonable costs and expenses incurred in performing any
obligations of Tenant hereunder;

     (b) Landlord's reasonable costs and expenses incurred in connection with
any reletting, including without limitation, all repossession costs, brokerage
commissions, legal expenses, attorneys' fees, repair and/or alteration costs,
costs for cleaning, renovation, decoration and other preparation of the Premises
for reletting;

     (c) Landlord's reasonable costs of removing any of Tenant's equipment,
goods, or other personalty from the property; and

     (d) The equivalent of the amount of Basic Rent and additional rent which
would be payable under this Lease by the Tenant if this Lease were still in
effect, less the rentals received pursuant to any reletting.

     16.05. Tenant shall pay to Landlord the damages set forth in Article 16.04
(a) (b) and (c) immediately upon demand therefore by Landlord. Tenant shall pay
to Landlord the damages set forth in Article 16.04 (d)( hereinafter called
"deficiency") monthly on the days on which the Basic Rent would have been
payable under this Lease if this Lease were still in effect, and Landlord shall
be entitled to recover from each Tenant each monthly deficiency as such
deficiency shall arise.

     16.06 In the event of termination of this Lease as provided in this
Article, Tenant hereby expressly waives any right of redemption or reentry or
repossession or to restore the operation of this Lease.

     16.07 The specified remedies to which Landlord may resort under the terms
of this Article are cumulative and are not intended to be exclusive of any or
all other remedies or means of redress to which Landlord may be lawfully
entitled in case of breach or threatened breach by Tenant of any provision of
this Lease. Without limiting the generality of the foregoing, Landlord shall
have the right to institute summary dispossess proceedings against Tenant under
all circumstances from time to time permitted by law. In the event judgment for
possession shall be entered in favor of Landlord and against Tenant in any such
proceedings, Tenant shall thereafter remain liable to Landlord as provided in
Section 16.04 and 16.05 of this Lease as if Landlord had terminated this Lease
by reason of Tenant's default pursuant to Section 16.01.

     ARTICLE 17. FIRE OR OTHER CASUALTY

     17.01 If the Premises shall be damaged by fire, the elements, accident or
other casualty ("Casualty") but the Premises are not thereby rendered
untenantable in whole or in part, Landlord shall promptly, at its expense, cause
such damage to be repaired without abatement of rent. If, as the result of a
Casualty, the Premises are rendered untenantable in part, Landlord shall
promptly, at its expense, cause such damage to be repaired, and provided that
Landlord receives the proceeds of the rent insurance maintained by Tenant, Base
Rent and Additional Rents shall be abated proportionately as to the portion of
the Premises rendered untenantable from the date of such Casualty until the
Premises, or any portion thereof, have been rendered tenantable. Tenant shall
not be entitled to rent abatement in the event the fire or other casualty was
caused by Tenant, its agents, employees, invitees, or licensees.

     17.02 If the Premises are (i) rendered wholly untenantable, or (ii) damaged
as a result of any cause which is not covered by Landlord's insurance or (iii)
damaged in whole or in part during the last year of the Term of (iv) if the
building of which the Premises are a part is

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damaged to the extent that the Demised Premises are thereby rendered
untenantable, Landlord cannot adjust such loss with its insurer within sixty
(60) days and reconstruct within ninety (90) days thereafter or (v) if any
mortgagee refuses to permit any insurance proceeds to be applied to the cost of
reconstruction or (vi) if the loss proceeds are insufficient to cover the cost
thereof, then in any such events Landlord may terminate this Lease. Within sixty
(60) days after the occurrence of such event Landlord shall deliver a written
notice (the "Casualty Notice") stating whether Landlord elects to (i) restore or
reconstruct the Premises, in which case this Lease shall remain in effect, or
(ii) terminate this Lease, in which case this Lease shall terminate immediately
and, provided that Landlord receives the proceeds of the rent insurance
maintained by Tenant, Base Rent and Additional Rents shall be adjusted as of the
date of termination. In the event Landlord fails to deliver the Casualty Notice,
Landlord shall be deemed to have elected to restore the Premises.

     17.03 If the building or buildings of which the Premises are a part are so
substantially damaged that it is reasonably necessary, in Landlord's judgment,
to demolish the building or buildings for the purpose of reconstruction,
Landlord may demolish the same, in which event the rent and other charges shall
be abated as if the Premises were rendered untenantable by a Casualty.

     17.04 In any case where Landlord elects to restore or reconstruct the
Premises, the Landlord shall commence reconstruction within sixty (60) days
after the delivery of the Casualty Notice and shall complete the reconstruction
within ninety (90) days after delivery of the Casualty Notice, subject to delays
resulting from inclement weather, fire or other casualty, strikes, labor
disputes, governmental regulation, unavailability of materials, inability to or
delay in adjusting insurance claims or any other cause reasonably beyond the
control of the Landlord Tenant has the right to terminate this Lease, without
penalty, if the restoration or reconstruction is not completed within the above
stated period.

     17.05 Statutory Conditions. Tenant hereby expressly waives the benefit of
New Jersey Revised Statutes, Title 46, Chapter 8, Sections 6 and 7. Tenant
agrees that it will not be relieved of the obligation to pay Base Rent or any
Additional Rent in case of damage to or destruction of the Demised Premises
except as specifically provided in the Lease.

     17.06 For purposes of this Section 18, the meaning of tenantable or
untenantable shall be with reference to Tenant's intended use as described
herein.

     17.07 Nothing set forth in this Lease shall obligate Landlord to replace
any Leasehold Improvements, inventory, furniture, chattels, signs, contents,
fixtures (including Trade Fixtures), or personal property of Tenant located on,
in, under, above, or which serve the Premises, or (b) rebuild the Premises in
the condition and state that existed before any such damage or destruction.

     ARTICLE 18. SUBORDINATION

     18.01 This Lease and the lien thereof upon the Premises and all rights of
Tenant hereunder are hereby subordinated and subjected to the lien(s) of any one
or more mortgages that now are or hereafter become a lien upon the Premises, or
any part thereof, and to any extensions or renewals thereof. This subordination
provision is intended to be self-executing and shall not require execution of
any further or subsequent instrument to affect the intention above expressed.

     18.02 Tenant shall, upon demand at any time or times, execute, acknowledge
and deliver to Landlord, without expense to Landlord, any and all instruments
that may be necessary or required to subordinate this Lease, and all rights
hereunder, to the lien of any such mortgage or mortgages. If, within 30 days of
receipt by Tenant of a demand for same, Tenant shall fail at any

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time to execute and deliver any such subordination instrument, Landlord, in
addition to any other remedies available to it, in consequence thereof, may
execute, acknowledge and deliver the same as the attorney-in-fact of Tenant, and
in Tenant's name, place and stead, and Tenant hereby makes, constitutes and
appoints Landlord such attorney-in-fact for that purpose.

     ARTICLE 19. MECHANICS' LIENS

     19.01 The parties hereto agree that Landlord shall not be at any time
liable or responsible for the cost, in whole or in part, of any alteration or
improvement or other work, labor or materials of any nature or kind whatsoever,
whether or not such work, labor or materials are required pursuant to the
provisions hereof in connection with or upon the Demised Premises. In addition,
the Demised Premises shall not be subject to any mechanics' lien pursuant to the
provisions of the laws of New Jersey, it being the intention of Landlord and
agreed upon by Tenant that no alterations, improvements or any work, labor or
materials shall be performed in or about the Demised Premises, or any part
thereof, except upon the credit of Tenant alone.

     19.02 Tenant agrees that in the event any contractor or subcontractor or
materialman or laborer or any other person whatsoever shall seek to impose a
lien on the Demised Premises, or any part thereof, by the service of or filing
of a notice of any nature or kind whatsoever as may be contemplated in the
provisions of the laws of New Jersey, or in the event any such contractor,
subcontractor, materialman or laborer shall, under the laws of New Jersey, file
a stop notice relating to work or labor done or materials supplied at, to or for
the Demised Premises. Tenant shall forthwith proceed to obtain an effective
cancellation or discharge of such lien by payment, deposit or bond, notice
and/or stop notice in writing in form which will be accepted for filing by the
appropriate County authorities in New Jersey. If the Tenant shall be unable to
procure such effective cancellation or discharge or is not contesting same in
good faith, for which Landlord may require an appropriate bond to be posted,
within twenty (20) days following the filing of any such notice or lien, the
Landlord shall have the right to do either or both of the following:

     (a) Declare the Tenant to be in default of the within Lease, or

     (b) Take such steps and pay such monies as may be necessary to obtain an
effective cancellation or discharge of such lien, notice and/or stop notice, in
which event such monies as shall be expended by the Landlord, together with
interest thereon at the highest rate then permitted by the laws of New Jersey to
be charged to individuals, shall be considered additional rent hereunder and
shall be due and payable of demand by Landlord.

     ARTICLE 20. CONDEMNATION

     20.01 In the event that the Premises shall be acquired or condemned for any
public or quasi-public use or purpose, under any statute or by right of eminent
domain or private purchase in lieu thereof, by anybody invested with the power
of eminent domain (hereinafter referred to as a "taking"), then, in any such
event, this Lease shall terminate upon the date the acquirer or condemnor takes
actual possession of the Demised Premises.

     20.02 In the event that as a result of a Taking, the Premises shall be
rendered unusable for the purposes contemplated by this Lease, either Landlord
or Tenant may, at its option, terminate this Lease by notifying the other,
within forty-five (45) days after the date of commencement of proceedings for
such acquisition or condemnation, of its election to terminate. Such proceedings
shall be deemed to have commenced upon the filing of a complaint in condemnation
or a Declaration of Taking, whichever shall be earlier. Such termination by
Landlord or Tenant shall be effective upon the date the acquirer or condemnor
takes actual possession of the said portion of the Demised Premises being
acquired or condemned.

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     20.03 In the event of termination of this Lease, pursuant to Section 20.02
hereof, all Basic Rent and additional rent shall be paid by Tenant to and
including the effective date of termination.

     20.04 It is understood and agreed that the award or payment in connection
with any such acquisition or condemnation proceedings of the Premises, whether
or not this Lease shall be terminated as a result thereof, shall be the sole and
exclusive property of Landlord, and Tenant shall have no rights or claims with
respect thereto. Notwithstanding anything contained herein to the contrary,
Tenant may make a separate claim for its trade fixtures, any improvements
approved by Landlord, and moving expenses.

     20.05 Tenant shall have no claim against Landlord as a result of or in
connection with any such acquisition or condemnation, including, without
limitation, any claim for the value of any unexpired portion of the Term hereof.

     ARTICLE 21. CERTIFICATION BY TENANT

     Tenant agrees at any time and from time to time, upon not less than ten
(10) days prior request by Landlord, to execute, acknowledge and deliver to
Landlord a statement in writing certifying that this Lease is in full force and
effect and has not been modified, altered or amended (except by such writing or
writings as shall be stated), and that to Tenant's knowledge there are no
defenses or offsets thereto, or stating these claimed by Tenant. It is intended
that the aforesaid statement may be relied upon by any prospective purchaser of
the fee or mortgage or assignee of any mortgage affecting the Property.

     ARTICLE 22. PERFORMANCE BY LANDLORD

     Tenant covenants and agrees that, if it shall at any time fail to make
payment or perform any act which Tenant is obligated to make or perform under
this Lease, Landlord may after the expiration of the applicable grace period,
but shall not be obligated to do so, and without waiving or releasing Tenant
from any obligations of Tenant in this Lease contained, make any such payments
or perform any such act in such manner and to such extent as Landlord, in its
discretion, shall determine to be necessary and, in exercising any such rights,
pay necessary and incidental costs and expenses, employ counsel and incur and
pay reasonable attorneys' fees. All sums so paid by Landlord and all necessary
and incidental costs and expenses in connection with the performance of any such
act by Landlord, together with interest thereon from the date of making such
expenditure by Landlord at the highest rate then permitted by the laws of New
Jersey to be charged to individuals but in no event greater than twenty (20%)
percent per annum, shall be deemed additional rent hereunder and shall be
payable to Landlord on demand or, at the option of Landlord, may be added to any
rent then due or thereafter becoming due under this Lease.

     ARTICLE 23. INSPECTION BY LANDLORD

     Tenant shall permit Landlord and the authorized representatives of Landlord
to enter the Premises during normal business hours with reasonable prior notice
for the purpose of exhibiting or inspection of same and after the expiration of
any applicable grace period, of making any necessary repairs to the Premises,
and performing any work therein or therein that may be necessary to comply with
any laws, ordinances, rules, regulations, or requirements of any governmental
authority, or that may be necessary to prevent waste or deterioration in
connection with the Premises, which Tenant is obligated, but has failed, to
make, perform, or prevent, as the case may be. Nothing in this Lease shall imply
any duty upon the part of the Landlord to do any such work or to make any
alterations, repairs (including, but not limited to, repairs and other
restoration work made necessary due to any fire or other casualty and
irrespective of the

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sufficiency or availability of any fire or other insurance proceeds which may be
payable in respect thereof), additions or improvements to the Premises, of any
kind whatsoever, except as otherwise expressly provided herein. The performance
thereof by Landlord shall not constitute a waiver of Tenant's default in failing
to perform the same. Landlord shall not, in any event, be liable for
inconvenience, annoyance, disturbance, loss of business to Tenant by reason of
making repairs or the performance of any work on the Premises or on account of
bringing materials, supplies, and equipment into or through the Premises during
the course thereof, and the obligations of Tenant under this Lease shall not
thereby be affected in any manner whatsoever. Landlord shall use every effort to
minimize any such inconvenience, annoyance or disturbance in the performance of
such work. All work performed by Landlord pursuant to this Article shall be paid
for by Tenant, as additional rent, promptly upon receipt of an itemized bill
therefore with appropriate invoices attached thereto.

     ARTICLE 24. PARKING

     Tenant shall have the reasonable non-exclusive use of the parking areas
specified from time to time by Landlord (in its sole discretion) for the use of
tenants of the building, and shall have non-exclusive reasonable use of access
ways to the building. Tenant agrees that it shall not park in such access ways
or act to interfere with the reasonable use of parking areas by any other
Tenants. Tenant agrees that in no event will the parking areas be used for
storage of goods or vehicles, except as same occurs in incidental and temporary
"downtime" (not to exceed 48 hours) while goods are in transit. Tenant further
agrees that no truck, trailer, or vehicle, maintenance, repair or fueling shall
occur anywhere on the property including but not limited to the parking areas,
except in the event of an emergency. Loading dock areas shall be utilized only
for loading and unloading goods. Vehicles may be parked only in areas
specifically designated from time to time by Landlord in its sole discretion.
Landlord shall have no obligation to police the use of the parking areas or to
mediate parking area disputes.

     ARTICLE 25. RETURN OF PREMISES IN GOOD CONDITION

     (a) The Tenant shall, upon the expiration or prior termination of this
Lease, surrender to Landlord the Premises in broom clean, and in good order,
condition and repair, except for reasonable wear and tear occurring after the
last necessary repair, replacement and/or renewal made by Tenant pursuant to its
obligations under this Lease.

     (b) Tenant acknowledges that it is solely responsible for any property it
causes or permits to be brought onto the Premises and is solely responsible for
the removal of same at or before the termination of this Lease. Except as
otherwise provided in this Lease, all trade fixtures, furniture, equipment and
other personal property installed or stored in the Premises (other than property
of Landlord) shall upon the date of expiration or other termination of this
Lease, be immediately removed by Tenant at its sole cost and expense and any
resultant damage to the Premises shall be repaired by, and at the expense of,
Tenant. In the event Tenant shall fail to remove such items, same shall be
conclusively presumed to be abandoned and the Landlord shall have the right
(without obligation to do so), without notice to Tenant, to immediately sell or
otherwise dispose of the said items, at the expense of the Tenant, and the
Landlord shall not be accountable to the Tenant for any proceeds of sale, or for
any damage or loss to the said items. Tenant shall be solely responsible for any
claims by any third party with regard any such items as to the Demised Premises.

     The Tenant agrees to indemnify and hold the Landlord harmless from any
claim, damage, cost, expense, or charge related to or arising out of the
Landlord's exercise of its rights granted under this provision including but not
limited to any claim by any third party with regard to said

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items (regardless whether Landlord had notice of such claim prior to the
disposition of such items), the reasonable costs of disposing of said items, and
any reasonable attorneys fees and court costs incurred by Landlord.

     The parties are aware of the provisions of NJSA 2A:18-72, ET. SEQ. and
Tenant expressly waives the benefit or the application of the provisions of said
statutes.

     Notwithstanding the foregoing, if, upon any such expiration or other
termination of this Lease, Tenant shall be delinquent or in material default
under any of the provisions hereof, Tenant shall not, without Landlord's prior
written consent, which consent shall not be unreasonably conditioned, withheld
or delayed, be entitled to remove any such trade fixtures, furniture, equipment
or personal property unless and until such delinquency or material default shall
have been cured, and if such delinquency or material default shall not have been
cured by Tenant within thirty (30) days after the date of such expiration or
termination, all such trade fixtures, furniture, equipment and personal property
of Tenant shall, at Landlord's option, be and become the absolute property of
Landlord. The provisions of this Article 25 shall not be construed to impair or
affect any lien or other rights or remedies of Landlord against Tenant or its
property as conferred by law or by the terms of this Lease.

     ARTICLE 26. SECURITY

     26.01 Tenant has deposited with the Landlord the sum of $26,176.00 as
security for the payment of rent hereunder and the full and faithful performance
by the Tenant of the covenants and conditions on the part of Tenant to be
performed. The unapplied portion of said sum shall be returned to Tenant,
without interest, after the expiration of the Term hereof or any option term,
provided that Tenant is not in default of any such covenants and conditions and
is not in arrears in rent. During the Term hereof, the Landlord may, if Landlord
so elects, have recourse to such security to make good any default, after the
expiration of any applicable grace period, by Tenant in which event the Tenant
shall, on demand, promptly restore said security to its original amount.
Liability to repay said security to Tenant shall run with the reversion and
title to said premises, whether any change in ownership thereof be by voluntary
alienation or as the result of judicial sale, foreclosure or other proceedings,
or the exercise of a right of taking or entry by any mortgagee. Landlord shall
assign or transfer said security, for the benefit of Tenant, to any subsequent
owner of holder of the reversion or title to said premises, in which case the
assignee shall become liable for the repayment thereof as herein provided, and
the assignor shall be deemed to be released by the Tenant from all liability to
return such security. This provision shall be applicable to every alienation or
change in title and shall in no wise be deemed to permit the Landlord to retain
the security after termination of the Landlord's ownership of the reversion or
title. Tenant shall not mortgage, encumber or assign said security without the
written consent of Landlord.

     If Tenant is in default under this Lease more than 2 times within any
twelve-month period, irrespective of whether or not such default is cured, then,
without limiting Landlord's other rights and remedies provided for in this Lease
or at law or equity, the Security Deposit shall automatically be increased by an
amount equal to three times the original Security Deposit which shall be paid by
Tenant to Landlord forthwith on demand.

     ARTICLE 27. ENVIRONMENTAL COMPLIANCE

     27.01 Compliance with Environmental Laws:

Tenant shall not intentionally or unintentionally cause or permit any toxic,
hazardous regulated or controlled substance, waste, or pollutant to be spilled,
discharged or emitted on, in or around the premises. Tenant shall be responsible
for full, complete compliance with all laws, statutes,

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regulations and ordinances, existing or enacted in the future involving health
and environmental matters, toxic or hazardous wastes, substances or pollutants
including but not limited to the New Jersey Spill Compensation and Control Act.,
N.J.S.A. 58:10-23.11 ET SEQ., the regulations promulgated thereunder and any
amending or successor legislation or regulations (the "Spill Act"), the Worker
and Community Right to Know Act, N.J.S.A. 34:5A-1 ET SEQ., the regulations
promulgated thereunder and any amending or successor legislation or regulations,
the Hazardous Substance Discharge -- Reports and Notions Act, N.J.S.A. 13:1K-15
ET SEQ., the regulations promulgated thereunder and any amending or successor
legislation or regulations, the Federal Water Pollution Act Amendments of 1972,
33 U.S.C. Section 1317 ET. SEQ.; the regulations promulgated thereunder and any
amending or successor legislation or regulations, Comprehensive Environmental
Response, Compensation and Liability Act, 42 U.S.C. Section 9601 ET SEQ., the
regulations promulgated thereunder and any amending or successor legislation or
regulations, the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901
ET SEQ., the regulations promulgated thereunder and any amending or successor
legislation or regulations, the Toxic Substances Control Act, 15 U.S.C. Section
2601 ET SEQ., the regulations promulgated thereunder and any amending or
successor legislation or regulations, and the Occupational Safety and Health
Act, 29 U.S.C. Section 651 ET SEQ., the regulations promulgated thereunder and
any amending or successor legislation or regulations.

     27.02 ISRA Compliance

     (a) Tenant shall, at Tenant's own expense, comply with the Industrial Site
Recovery Act, N.J.S.A. 13:1K-6 ET SEQ., the regulations promulgated thereunder
and any amending and successor legislation and regulations ("ISRA"). Tenant
shall, at Tenant's own expense, make all submissions to, provide all information
to, and comply with all requirements of the Industrial Site Evaluation Element
or its successor ("Element") of the New Jersey Department of Environmental
Protection and Energy or its successor ("NJDEPE").

     (b) Tenant's obligations under this paragraph shall arise if there is a
closing of operations, a transfer of ownership or operations, or a change in
ownership at or affecting the premises pursuant to ISRA, whether triggered by
Landlord or Tenant.

     (c) Provided this Lease is not previously canceled or terminated by either
party or by operation of law, Tenant shall commence its submission to the
Element in anticipation of the end of the Lease Term, no later than one year
prior to the expiration of the Lease Term

     (d) For purposes of this paragraph, the terms "Environmental Documents"
shall mean all environmental documentation concerning the premises or its
environs, in the possession or under the control of Tenant, including without
limitation all sampling plans, cleanup plans, preliminary assessment plans and
reports, site investigation plans and reports, remedial investigation plans and
reports, remedial action plans and reports or the equivalent, sampling results,
sampling result reports, data, diagrams, charts, maps, analyses, conclusions,
quality assurance/quality control documentation, correspondence to or from the
Element or any other municipal, county, state or federal governmental authority,
submissions to the Element or any other municipal, county, state or federal
governmental authority and directives, orders, approvals and disapprovals issued
by the Element or any other municipal, county, state or federal governmental
authority. During the Term of this Lease and subsequently promptly upon receipt
by Tenant or Tenant's representatives, Tenant shall deliver to Landlord all
Environmental Documents concerning or generated by or on behalf of Tenant,
whether currently or hereafter existing.

     (e) Tenant shall notify Landlord in advance of all meetings scheduled
between Tenant or Tenant's representatives and NJDEPE or any other environmental
authority, and Landlord and

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Landlord's representatives shall have the right, without the obligation, to
attend and participate in all such meetings.

     (f) Should the Element or any other division of NJDEPE or other
governmental authority determine that a remedial action work plan be prepared
and that remediation be undertaken because fill materials or hazardous or toxic
substances, pollutants or wastes exist, or have been spilled, discharged or
placed in, on, under or about the premises during the Lease Term, Tenant shall,
at Tenant's own expense, promptly prepare and submit a remedial action work plan
and establish a remediation funding source, which plan and funding source shall
be satisfactory to Landlord and shall promptly implement the approved remedial
action work plan to the satisfaction of Landlord. In no event shall Tenant's
remedial action involve engineering or institutional controls, including without
limitation capping, deed notice, declaration of restriction or other
institutional control notice pursuant to P.L. 1993, c.139, and notwithstanding
NJDEPE's requirements, Tenant's remedial action shall meet the most stringent
NJDEPE remediation standards for soil, surface water and groundwater. Promptly
upon completion of all required investigatory and remedial activities, Tenant
shall restore the affected areas of the premises from any damage or condition
caused by the work, including without limitation closing, pursuant to law, any
wells installed at the Premises.

     (g) At no expense to Landlord, Tenant shall promptly provide all
information requested by Landlord or NJDEPE for preparation of a
non-applicability affidavit, de minimus quantity exemption application, limited
conveyance application or other submission and shall promptly sign such
affidavits and submissions when requested by Landlord or NJDEPE.

     (h) Should Tenant's operations at the premises be outside of those
industrial operations covered by ISRA, Tenant shall, at Tenant's own expense,
obtain a letter of non-applicability or de minimus quantity exemption from the
Element prior to termination of the Lease Term and shall promptly provide
Tenant's submission and the Element's exemption letter to Landlord. Should
Tenant obtain a letter of non-applicability or a de minimus quantity exemption
from the Element, then Tenant shall, at Landlord's option, hire a consultant
satisfactory to Landlord to undertake sampling at the premises sufficient to
determine whether fill materials, or hazardous or toxic substances, pollutants
or wastes exist or have been spilled, discharged or placed in, on, under or
about the Premises during the Lease Term. Tenant's sampling shall also establish
the integrity of all underground storage tanks at the Premises. Should the
sampling reveal any spill, discharge or placing of fill materials, or of
hazardous or toxic substances, pollutants or wastes, in, on, under, or about the
Premises, then Tenant shall, at Tenant's expense, prior to the expiration or
earlier termination of the Lease Term, promptly remediate the premises to the
satisfaction of Landlord and NJDEPE. In no event shall Tenant's remedial action
involve engineering or institutional controls, including without limitation
capping, deed notice, declaration of restriction or other institutional control
notice pursuant to P.L. 1993, c.139., and notwithstanding NJDEPE'S requirements,
Seller's remedial action shall meet the most stringent NJDEPE remediation
standards for soil, surface water and groundwater.

     (i) If Tenant fails to obtain either: (i) a non-applicability letter; (ii)
a de minimus quantity exemption; (iii) an unconditional approval of Tenant's
negative declaration; or (iv) a no further action letter with respect to
Tenant's remedial action work plan; (collectively referred to as "ISRA
Clearance") from the Element; or fails to remediate the Premises pursuant to
subparagraph (h) above, prior to the expiration or earlier termination of the
Lease Term, then upon the expiration or earlier termination of the Lease Term
Landlord shall have the option either to consider the Lease as having ended or
to treat Tenant as a holdover tenant in possession of the

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Premises. If Landlord considers the Lease as having ended, then Tenant shall
nevertheless be obligated to promptly obtain ISRA Clearance or fulfill the
obligations set forth in subparagraph (h) above, as the case may be. If Landlord
treats Tenant as a holdover tenant in possession of the Premises, then Tenant
shall monthly pay to Landlord double the regular and additional monthly rent
which Tenant would otherwise have paid, until such time as Tenant obtains ISRA
Clearance or fulfills its obligations under subparagraph (h) above, as the case
may be, and during the holdover period all of the terms of this Lease shall
remain in full force and effect.

     (j) Tenant represents and warrants to Landlord that Tenant intends to use
the Premises for the purposes set forth in Article 12(a) Tenant represents that
its business operations have the Standard Industrial Classification (S.I.C.)
number(s) as defined by the most recent edition of the Standard Industrial
Classification Manual published by the Federal Executive Office of the
President, Office of Management and Budget as set forth on the first page of
this Agreement. Tenant's use of the Premises shall be restricted to the
classifications set forth above unless Tenant obtains Landlord's prior written
consent to any change in use of the Premises. Prior to the commencement date of
Tenant's Lease Term, Tenant shall supply to Landlord an affidavit of an officer
of Tenant ("Officer's Affidavit") setting forth Tenant's S.I.C. numbers and a
detailed description of the operations and processes Tenant shall undertake at
the Premises, organized in the form of a narrative report including a
description and quantification of hazardous or toxic substances, pollutants and
wastes to be generated, manufactured, refined, transported, treated, stored,
handled or disposed of at the Premises, if any. Following commencement of the
Lease Term, Tenant shall notify Landlord by way of a supplemental Officer's
Affidavit as to any changes in Tenant's operation, S.I.C. numbers or use,
generation, manufacture, refining, transportation, treatment, storage, handling
or disposal of hazardous or toxic substances, pollutants and wastes. Tenant
shall also supplement and update Officer's Affidavit upon each anniversary of
the commencement of the Lease Term. Tenant shall not commence or alter any
operations at the Premises prior to: (i) obtaining all required operating and
discharge permits or approvals, including but not limited to air pollution
control permits and water pollution discharge elimination system permits from
NJDEPE, from all governmental or public authorities having jurisdiction over
Tenant's operations or the premises, and (ii) providing a copy of the permits or
approvals to Landlord.

     (k) Tenant shall permit Landlord and Landlord's agents, servants and
employees, including but not limited to legal counsel and environmental
consultants and engineers, access to the Premises for the purpose of
environmental inspection and sampling during regular business hours, or during
other hours either by agreement of the parties or in the event of any
environmental emergency. Tenant shall not restrict access to any part of the
Premises, and Tenant shall not impose any conditions to access. In the event
that Landlord's environmental inspection shall include sampling and testing of
the Premises, Landlord shall use its best efforts to avoid unreasonably
interfering with Tenant's use of the Premises, and upon completion of sampling
and testing shall, to the extent reasonably practicable, repair and restore the
affected areas of the Premises from any damage caused by the sampling and
testing.

     (1) This paragraph shall survive the expiration or earlier termination of
this Lease. Tenant's failure to abide by the terms of this paragraph shall be
restrainable by injunction.

     27.03 Reporting Requirements

     If Tenant knows, or has reasonable cause to believe, that a Hazardous
Substance is located in, under or about the Premises or the Building, Tenant
shall immediately give Landlord written notice thereof, together with a copy of
any statement, report, notice, registration,

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application, permit, business plan, license, claim, action or proceeding given
to, or received from, any governmental authority or private party concerning the
presence, spill, release, discharge of, or exposure to, such Hazardous
Substance. Tenant shall not cause or permit any Hazardous Substance to be
spilled or released in, on, under or about the Premises (including, without
limitation, through the plumbing or sanitary sewer system).

     Tenant shall promptly supply Landlord with a copy of all notices, reports,
correspondence and submissions made by Tenant to EPA, NJDEPE, the United States
Occupational Safety and Health Administration or any other local, municipal,
county, state or federal authority which requires submission of any information
concerning health or environmental matters, or hazardous or toxic substances,
wastes or pollutants pursuant to laws including but not limited to the New
Jersey Spill Compensation and Central Control Act, N.J.S.A. 58:10-23.11 ET SEQ.,
the regulations promulgated thereunder and any amending or successor legislation
or regulations (the "Spill Act"), the Worker and Community Right to Know Act,
N.J.S.A. 34:5A-1 ET SEQ., the regulations promulgated thereunder and any
amending or successor legislation or regulations, the Hazardous Substance
Discharge -- Reports and Notices Act, N.J.S.A. 13:1K-15 ET SEQ., the regulations
promulgated thereunder and any amending or successor legislation or regulations,
the Comprehensive Environmental Response Compensation and Liability Act, 42
U.S.C. Section 9601 ET SEQ., the regulations promulgated thereunder and any
amending or successor legislation or regulations, the Resource Conservation and
Recovery Act, 42 U.S.C. Section 6901 ET SEQ., the regulations promulgated
thereunder and any amending or successor legislation or regulations, the Toxic
Substances Control Act, 15 U.S.C. Section 2601 ET SEQ., the regulations
promulgated thereunder and any amending or successor legislation or regulations,
and the Occupational Safety and Health Act, 29 U.S.C. S651 ET SEQ., the
regulations promulgated thereunder and any amending or successor legislation or
regulations.

     27.04 Environmental Liens.

     Tenant shall promptly notify Landlord of any liens threatened or attached
against the Premises pursuant to the Spill Act or any other environmental law
(giving the widest possible meaning to such term). In the event that such is a
lien is filed against the Premises, then Tenant shall, within thirty (30) days
from the date that the lien is placed against the Premises, and at any rate
prior to the date any governmental authority commences proceedings to sell the
Premises pursuant to the lien, either: (a) pay the claim and remove the lien
from the Premises; or (b) deliver to the Landlord either (i) a bond in an amount
and with a surety satisfactory to Landlord; (ii) a cash deposit in the amount of
the lien plus any interest that may accrue thereon, or (iii) other security
satisfactory to the Landlord in an amount sufficient to discharge the claim out
of which the lien arises.

     27.05 Tenant shall indemnify, defend and hold harmless Landlord from and
against all claims, liabilities, losses, damages, penalties and costs, foreseen
or unforeseen, including without limitation counsel, engineering and other
professional or expert fees, which Landlord may incur resulting directly or
indirectly, wholly or partly from Tenant's action or non-action with regard to
Tenant's obligations under this paragraph. This provision shall survive
termination of this Lease.

     27.06 Notwithstanding anything to the contrary above, Tenant shall have no
obligation with regard to (a) any condition caused by Landlord, its employees,
agents, servants, invitees, contractors or licensees, or (b) any condition
caused solely by underground migration of regulated materials on to the property
from a neighboring site without any act or omission of Tenant, or (c) any
preexisting condition not aggravated by Tenant.

     ARTICLE 28. QUIET ENJOYMENT

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     Landlord covenants and agrees that Tenant, upon paying the Basic Rent and
additional rent herein reserved, and performing and observing the covenants,
conditions and agreements hereof upon the part of the Tenant to be performed and
observed, shall and may peaceably hold and enjoy the Demised Premises during the
Term, without any interruption or disturbance from the Landlord, subject,
however, to the terms of this Lease.

     ARTICLE 29. BROKERAGE

     29.01 Tenant and Landlord hereby each represent and agree that they have
not dealt with any real estate brokers or agents in connection with this
transaction. Tenant hereby agrees to indemnify Landlord against any and all
liability, including, but not limited to, attorneys' fees and other expenses
incident to any claims or litigation arising out of claims or demands for
brokerage commissions brought against Landlord and predicated upon a claim that
Tenant had transactions with the claimant, as broker, in connection with or in
respect of this Lease.

     ARTICLE 30. NO WAIVER

     The failure of Landlord to insist in any one or more cases upon the strict
performance of any of the terms, covenants, conditions, provisions or agreements
of this Lease or to exercise any option herein contained, shall not be construed
as a waiver or a relinquishment for the future of any such term, covenant,
condition, provision, agreement or option. The receipt and acceptance by
Landlord of Basic Rent, additional rent, or any other payment, or the acceptance
of performance of anything required by this Lease, shall not be deemed a waiver
of any right of Landlord under this Lease or available law. Additionally, no
statement in any letter (or restrictive endorsement or any payment) accompanying
any payment of rent be effective or, operate or be construed either as an accord
and satisfaction or in any manner other than as a payment on account of the
earliest Basic Rent, additional rent, or other charge or fee under this Lease
then unpaid by Tenant. The Landlord may accept any check for payment from the
Tenant without prejudice to the Landlord's right to recover the balance of fixed
Basic Rent, additional rent, or other sums due from the Tenant under the Lease,
or to pursue any other right or remedy provided under this Lease or by law. No
waiver by Landlord of any term, covenant, condition, provision or agreement of
this Lease shall be deemed to have been made unless expressed in writing and
signed by the Landlord. Neither acceptance of the keys nor any other act or
thing done by Landlord during the Term shall be deemed an acceptance of
surrender by Tenant of the Premises and this Lease, unless such surrender shall
be accepted in an agreement in writing signed by Landlord.

     ARTICLE 31. NOTICES

     Any notice required or authorized to be sent pursuant to the provisions
hereof shall be sent postage prepaid, by United States certified or registered
mail, to the respective parties hereto at the addresses stipulated on the first
page of this Lease, and, in addition, if to the Landlord to

     Law Offices of W. Lane Miller, 1203 Route 9 South, Woodbridge, New Jersey
07095, Attention: W. Lane Miller, Esq., and, if to Tenant, at the address shown
on the first page hereof; any other address as shall be designated by the
parties hereto upon written notice. Such notices shall be deemed to have been
delivered when deposited in the United States Mail as aforesaid.

     ARTICLE 32. ENTIRE AGREEMENT

     32.01 This Lease sets forth all the promises, inducements, agreements,
conditions and understandings between Landlord and Tenant relative to the
Premises and there are no promises, agreements, conditions or understandings
either oral or written, expressed or implied, between them, other than as are
herein set forth. No subsequent alteration, amendment, change or

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addition to this Lease shall be binding upon Landlord or Tenant unless reduced
to writing and signed by each of said parties.

     32.02 This agreement shall be deemed made in the State of New Jersey, and
shall be construed in accordance with the laws thereof. All parties and
signators hereto agree to be subject to the jurisdiction of New Jersey and that
the New Jersey Courts shall have exclusive jurisdiction with regard to any
action, dispute, or claim relating to or arising out of this Lease.

     ARTICLE 33. ENFORCEABILITY

     If any term or provision of this Lease or the application thereof to any
person or circumstances shall, to any extent, be invalid or unenforceable, the
remainder of this Lease, or the application of such term or provision to persons
or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby and each term and provision of this
Lease shall be valid and be enforced to the fullest extent permitted by law.

     ARTICLE 34. ADDITIONAL RENTS

     All monies, other than the Basic Rent, required to be paid by Tenant
hereunder, shall, whether or not so designated elsewhere in this Lease,
constitute additional rent, and Landlord shall have, with respect thereto, all
rights and remedies against Tenant which Landlord has or may have under this
Lease, at law or in equity, with respect to the Basic Rent. Unless otherwise
specified in this Lease, all additional rent shall be due and payable with the
next due installment of Basic Rent. Time shall be of the Essence for payment of
same.

     ARTICLE 35. CAPTIONS

     The captions of this Lease are for convenience of reference only, and in no
way define, limit or describe the scope or intent of this Agreement of Lease nor
in any way affect it.

     ARTICLE 36. BINDING EFFECT

     This Agreement is binding upon and shall inure to the benefit of the
respective parties hereto, their respective heirs, legal representatives and
successors by operation of law or otherwise and their assigns, subject to the
provisions of Article 11.

     ARTICLE 37. WAIVER OF COUNTERCLAIMS

     In the event that Landlord commences any dispossess proceedings, summary or
otherwise, in the Special Civil Part, Tenant will not interpose any counterclaim
of whatsoever nature or description in any such proceeding (unless failure to do
so will bar Tenant from raising same under the entire controversy doctrine),
and, Tenant hereby waives its right to remove or transfer any such proceedings
to any other court of the State of New Jersey.

     ARTICLE 38. EXCUSE OF LANDLORD'S PERFORMANCE

     Anything in this Agreement to the contrary notwithstanding, Landlord shall
not be deemed in default with respect to the performance of any of the terms,
covenants and conditions of this Lease if same shall be due to any strike,
lockout, civil commotion, war-like operation, invasion, rebellion, hostilities,
military or usurped power, sabotage, governmental regulations or controls,
through Act of God or any other cause whatsoever beyond the control of the
Landlord.

     ARTICLE 39. NONLIABILITY OF LANDLORD

     39.01 The Landlord shall not be responsible for the loss of or damage to
property, or injury to persons, occurring in or about the Demised Premises, by
reason of any existing or future condition, defect, matter or thing in said
Demised Premises or the Property of which the Premises are a part, or for the
acts, omissions, or negligence of other persons or tenants in and about the said
Property, except as caused by the gross negligence or willful misconduct of
Landlord, its employees, agents, servants, invitees, contractors or licensees.
The Tenant agrees to indemnify and save the Landlord harmless from all claims
and liability for losses of or damages to property,

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or injuries to persons occurring in or about the Demised Premises. All property
kept, maintained or stored on the Premises at the sole risk of Tenant, and
Tenant shall indemnify and hold Landlord harmless from same to the extent as the
other indemnifications set forth in Paragraph 10.01.

     39.02 Landlord shall not be liable to Tenant or any person or entity
claiming through the Tenant, nor shall Tenant be excused from the performance of
any obligation hereunder, due to any breach or violation by Landlord, by any
other tenant or by any other person or entity, of:

          (i) any rule or regulation established by Landlord; or

          (ii) any provision, covenant, term or condition of any other agreement
affecting the Property or any portion thereof. Further, Landlord shall not be
liable, nor shall Tenant be excused from the performance of any obligation
hereunder, due to the Landlord enforcing any right or remedy against the Tenant
and/or against other tenants of the Building, but not against all tenants of the
Building.

     ARTICLE 40. TENANT'S TIME TO SUE

          a. Commencement of Action. Any claim, demand, right or, defense by
Tenant that arises out of this Lease or the negotiations that preceded this
Lease shall be barred unless Tenant commences an action thereon, or interposes a
defense by reason thereof, within 12 months after the later of (a) date of the
inaction, omission, event, or action that gave rise to such claim, demand,
right, or defense or (b) the date same was known or in the exercise of
reasonable diligence should have been known by Tenant.

          b. Tenant Acknowledgment. Tenant acknowledges and understands, after
having consulted with its legal counsel, that the purpose of Paragraph (a) is to
shorten the period within which Tenant would otherwise have to raise such
claims, demands, rights, or defenses under applicable laws.

     ARTICLE 41. USE OF PRONOUN

     The use of the neuter, singular pronoun to refer to Landlord or Tenant
shall be deemed a proper reference even though Landlord or Tenant may be an
individual, a partnership, a corporation, or a group of two or more individuals
or corporations. The necessary grammatical changes required to make the
provisions of the Lease apply in a plural sense where there is more than one
Landlord or Tenant and to either corporations, associations, partnerships or
individuals, males or females, shall in all instances be assumed as though in
each case fully expressed.

     ARTICLE 42. STATUTORY REFERENCES

     Any reference herein to a statutory section or subsection shall be read
expansively to include any amendment or modification of such statute and any
successor or analogous statute.

     ARTICLE 43. HOLDING OVER. The failure of the Tenant to return the Premises
at the end of the Lease Term or a failure to comply with Article 25 and/or 27
hereof shall constitute a holding over by Tenant. Any such hold over by Tenant
shall not be deemed to extend the tenancy on a month-to-month basis or
otherwise. Tenant shall during any such holdover period be liable to Landlord
for all rental and additional rental set forth herein except that the Basic Rent
shall be at 200% of the Basic Rent for the last month of the Lease Term. Said
monies shall be in addition to, and not in lieu of other damages or remedies
available to Landlord under this Lease or at law.

     ARTICLE 44. NO OPTION

     Submission of this Lease for examination does not constitute a reservation
of or option for the Premises and this Lease becomes effective as a Lease only
upon execution and delivery thereof by Landlord and Tenant.

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<Page>

     ARTICLE 45. RECORDING

     Tenant shall not be permitted to record this Lease.

     ARTICLE 46. TRANSFER BY LANDLORD

     The term "Landlord" as used herein shall mean only the owner or owners at
the time in question of the fee title, and in the event of any transfer of such
title or interest, Landlord herein named (and in the case of any subsequent
transfers, the then grantor) shall be relieved from and after the date of such
transfer of all liability with respect to Landlord's obligations thereafter to
be performed, provided that any funds in the hands of Landlord or the grantor at
the time of such transfer in which Lessee has an interest shall be delivered to
the grantee. The obligations contained in this Lease to be performed by Landlord
shall subject as aforesaid, be binding on Landlord's successors and assigns only
during their respective period of ownership. In all events, the liability of
Landlord shall be limited to Landlord's equity in the Premises and in no other
property. The liability of Landlord under this Lease with regard to any matter
concerning the condition of the Premises, Building or Property shall not extend
beyond repair, replacement or maintenance of the property or the entire
property, as the case may be.

     In no event shall Landlord be liable to Tenant for any punitive, special,
consequential, or incidental damages (including but not limited to lost
profits).

     ARTICLE 47. RECOGNITION OF RIGHTS AND WAIVER OF PLAIN LANGUAGE LAW/NO
CONSTRUCTION AGAINST DRAFTER.

     Each signatory to this Lease represents that he is a sophisticated business
person, has conferred with and has been represented by counsel of his own
choosing, is aware of all of his rights, privileges and obligations under the
Lease and fully understands the provisions of this Lease. The parties further
expressly acknowledge that this Lease constitutes a business and not a consumer
transaction for personal, family or household purposes and each party, to the
extent permissible by law, waives the provisions of the Plain Language Act,
N.J.S.A. 56:12-1 Et. Seq.

     Lessor and Lessee have carefully read and reviewed this Lease and each term
and provision contained herein and, by execution of this Lease, shows their
informed and voluntary consent thereto. The parties hereby agree that, at the
time this Lease is executed, the terms of this Lease are commercially reasonable
and effectuate the intent and purpose of Lessor and Lessee with respect to the
Premises.

     In the event of an ambiguity, controversy, dispute or disagreement over the
interpretation, validity or enforceability of this Lease or any of its
covenants, terms or conditions, no interference, presumption or conclusion
whatsoever shall be drawn against Landlord by virtue of Landlord's having
drafted this Lease.

     ARTICLE 48. EFFECTIVE DATE.

     This Agreement shall be effective upon execution by all parties hereto.
Upon execution, Tenant shall deliver to Landlord in good funds (i) the Security
Deposit and (ii) the first month's rental. Tenant's obligation to pay basic
rental under this Lease shall not commence until October 1, 2002.

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     IN WITNESS WHEREOF, the parties hereto have caused this Lease to be duly
executed on the day and year first above written.

                                              LANDLORD
                                                  KR Holdings, Inc.

WITNESS:                                          By: /s/ Kikis A. Kryiacou
                                                     ---------------------------

/s/ Karri McGackin                                Name: Kikis A. Kryiacou
-----------------------------                          -------------------------

                                                  Title: President
                                                        ------------------------

                                              TENANT

                                                  STRATUS SERVICES GROUP, INC.
WITNESS:

/s/Suzette Berrios                                By: /s/ Michael A. Maltzman
-----------------------------                        ---------------------------
General Counsel and
An Attorney-at-Law of the                         Name: Michael A. Maltzman
State of New Jersey                                    -------------------------

                                                  Title: Chief Financial Officer
                                                        ------------------------

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<Page>

                            CORPORATE ACKNOWLEDGMENT

STATE OF NEW JERSEY:
COUNTY OF MONMOUTH       SS.:

     On this 11th day of July 2002, before me, the undersigned subscriber,
personally appeared Michael A. Maltzman the Chief Financial Officer of
Stratus Services Group, Inc. who I am satisfied is the person who has signed
the within instrument, and, I having first made known to him the contents
thereof he did acknowledge that he signed, sealed with the corporate seal,
and delivered the same as such officer aforesaid and that the within
instrument is the voluntary act and deed of such Corporation, made by virtue
of the authority of its Board of Directors and of its shareholders (if
required).

                                                    /s/ Suzette N. Berrios
                                              ----------------------------------
                                                   Suzette N. Berrios, Esq.
                                                       General Counsel

Sworn to and subscribed before me at
the date aforesaid.

     /s/ Lynne K. Morrison
------------------------------

Notary Lynne K. Morrison
       Notary Public, State of New Jersey
       No. 2078353
       Qualified in Monmouth County
       Commission Expires July 28, 2005

Page 33

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