Document:

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                                  EXHIBIT 10.1

                         STANDARD INDUSTRIAL/COMMERCIAL
                           MULTI-TENANT LEAST - GROSS
                   AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION

1.     BASIC  PROVISIONS  ("BASIC  PROVISIONS").

1.1          PARTIES:  This  Lease  ("LEASE")  dated for reference purposes only
August  15,  2002,  is  made  by  and between  Del Mar Avionics, A California
                                              -------------------------------
Corporation
---------------------------------------------------------------------("LESSOR")
and  HiEnergy  Technologies,  Inc.
     --------------------------------------------------------------- ("LESSEE"),
(collectively  the  "PARTIES",  or  individually  a  "PARTY").

1.2  (a)  PREMISES:  That  certain  portion  of  the Project (as defined below),
including  all  improvements therein or to be provided by Lessor under the terms
of  this  Lease,  commonly  known  by  the street address of 1601 Alton Parkway,
                                                              ------------------
located  in  the  City  of    Irvine  ,  County of  Orange,  State of California
                              -------               -------         ------------
with zip code  92606,     as outlined on Exhibit A
            ----------                         -----
attached  hereto  ("PREMISES") and generally described as (describe briefly the
nature of the Premises):Approximately 6,600  square  foot  portion  of a larger
                        ------------- -----------------------------------------
size approximate  of  124,000  square  foot  freestanding building.
-------------------------------------------------------------------

In  addition  to  Lessee's  rights to use and occupy the Premises as hereinafter
specified, Lessee shall have non-exclusive rights to the Common Area (as defined
in  Paragraph 2.7 below) as hereinafter specified, but shall not have any rights
to  the  roof, exterior walls or utility raceways of the building containing the
Premises  ("BUILDING")  or  to any other buildings in the Project. The Premises,
the Building, the Common Areas, the land upon which they are located, along with
all  other  buildings and improvements thereon, are herein collectively referred
to  as  the  "PROJECT"(See  also  Paragraph  2.)

1.2  (b)     PARKING:       12     unreserved  vehicle  parking  spaces
                       -----------
("UNRESERVED  PARKING  SPACES")  ; and   0   reserved vehicle parking spaces
                                       -----
("RESERVED PARKING SPACES"). (See also  Paragraph  2.6.)

1.3          TERM:     3   years  and     0  months ("ORIGINAL TERM") commencing
                  --------             ------
October 15,  2002 ("COMMENCEMENT DATE") and ending  October 14, 2005
-------------------                                  ----------------
("EXPIRATION DATE"). (See  also  Paragraph  3.)

1.4     EARLY POSSESSION:  September 15, 2002  ("EARLY POSSESSION DATE").
                           ------------------
(See  also  Paragraphs 3.2  and  3.3.)

1.5          BASE  RENT:         $  8,000.00     per  month  ("BASE RENT"),
                            -------------------
payable  on  the     First    day  of  each month commencing
                   ---------
October 1, 2002. (See also Paragraph  4.)

---------------

___ If  this  box  is  checked, there are provisions in this Lease for the Base
Rent  to  be  adjusted.

1.6          LESSEE'S  SHARE  OF  COMMON  AREA  OPERATING  EXPENSES:  Five and a
                                                                      ----------
half* percent  ( 5.5  %)  ("Lessees"  Share").  *Included  in  overall  rent.
------         --------

1.7     BASE  RENT  AND  OTHER  MONIES  PAID  UPON  EXECUTION:

(a)     BASE  RENT:  $  8,000.00  for  the period October 15 to November 14,
                      -----------                --------------------------
        2002.
        -----

(b)     COMMON  AREA  OPERATING  EXPENSES:  $  0  for  the  period    0
                                           ------                   -----

(c)     SECURITY  DEPOSIT:   $ 8,000.00 ("Security Deposit"). (See also
                             ----------
        Paragraph  5.)

(d)     OTHER:         0         for    0   .
                 ----------          ------

(e)     TOTAL DUE UPON EXECUTION OF THIS LEASE:   $ 16,000.00  .
                                                  ----------

1.8     AGREED USE:  General Offices and Lab Space for a product development and
                     -----------------------------------------------------------
product  testing  facility.
--------------------------- ------------------------------------------ .  (See
also  Paragraph  6.)

1.9     INSURING  PARTY: Lessor is the "INSURING PARTY". (See also Paragraph 8.)

1.10     REAL  ESTATE  BROKERS:  (See  also  Paragraph  15.)

(a)     REPRESENTATION:  The  following  real estate brokers (the "BROKERS") and
brokerage Relationships exist in this  transaction  (check  applicable  boxes):

___________________________________________  represents  Lessor exclusively
("LESSOR'S  BROKER"); ___________________________________________  represents
Lessee exclusively  ("LESSEE'S  BROKER");  or Nathan  Howard  Group
                                             ----------------------
represents  both Lessor  and  Lessee  ("Dual  Agency").

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(b)  PAYMENT  TO  BROKERS:  Upon  execution  and  delivery of this Lease by both
Parties,  Lessor  Shall  pay  to  the  Brokers  the brokerage fee agreed to in a
separate  written  agreement  (or  if  there  is  no  such Agreement, the sum of
per agreement   or  ______  %  of  the  total  Base Rent for the brokerage
services  rendered  by  the  Brokers).

1.11  GUARANTOR:  The  obligations  of  the  Lessee  under  this Lease are to be
guaranteed  by ____________ ____________________________________________________
("Guarantor").  (See  also  Paragraph  37.)

1.12  Addenda and Exhibits. Attached hereto is an Addendum or Addenda consisting
of  Paragraphs  ___ through ____________ and Exhibits ______ through ______, all
of  which  constitute  a  part  of  this  Lease.

2.     PREMISES.

2.1          LETTING.  Lessor  hereby leases to Lessee, and Lessee hereby leases
from  Lessor,  the  Premises,  for  the term, at the rental, and upon all of the
terms,  covenants  and  conditions  set  forth  in  this Lease. Unless otherwise
provided herein, any statement of size set forth in this Lease, or that may have
been  used  in  calculating Rent, is an approximation which the Parties agree is
reasonable and any payments based thereon are not subject to revision whether or
not  the  actual  size  is  more  or  less.

2.2          CONDITION.  Lessor  shall  deliver  that  portion  of  the Premises
contained  within the Building ("UNIT") to Lessee broom clean and free of debris
on  the  Commencement  Date or the Early Possession Date, whichever first occurs
("START  DATE"),  and,  so  long  as the required service contracts described in
Paragraph  7.1(b)  below are obtained by Lessee and in effect within thirty days
following  the Start Date, warrants that the existing electrical, plumbing, fire
sprinkler, lighting, heating, ventilating and air conditioning systems ("HVAC"),
loading doors, if any, and all other such elements in the Unit, other than those
constructed  by  Lessee,  shall  be in good operating condition on said date and
that  the  structural  elements of the roof, bearing walls and foundation of the
Unit  shall  be free of material defects. If a non-compliance with such warranty
exists  as  of  the  Start  Date,  or  if one of such systems or elements should
malfunction  or  fail  within  the appropriate warranty period, Lessor shall, as
Lessor's  sole  obligation  with  respect  to  such  matter, except as otherwise
provided  in  this  Lease  promptly  after receipt of written notice from Lessee
setting  forth  with  specificity  the nature and extent of such non-compliance,
malfunction  or  failure, rectify same at Lessor's expense. The warranty periods
shall  be as follows: (i) 12 months as to the HVAC systems, and (ii) 180 days as
to  the remaining systems and other elements of the Unit if Lessee does not give
Lessor the required notice within the appropriate warranty period, correction of
any  such  non-compliance,  malfunction  or  failure  shall be the obligation of
Lessee  at  Lessee's  sole  cost and expense (except for the repairs to the fire
sprinkler  systems,  roof, foundations, and/or bearing walls - see Paragraph 7).

                                  Page 1 of 12

  1998  -  American  Industrial  Real  Estate  Association     REVISED
FORM  MTG-2-11/98E
<PAGE>

2.3  COMPLIANCE.  Lessor  warrants that the improvements on the Premises and the
Common Areas comply with the building codes that were in effect at the time that
each  such  improvement,  or portion thereof. was constructed, and also with all
applicable  laws,  covenants  or  restrictions  of  record,  regulations,  and
ordinances  in  effect  on  the  Start  Date  ("APPLICABLE  REQUIREMENTS"). Said
warranty  does  not apply to the use to which Lessee will put the Premises or to
any  alterations  or Utility Installations as defined in Paragraph 7.3(a).) made
or  to be made by Lessee. NOTE: LESSEE IS RESPONSIBLE FOR DETERMINING WHETHER OR
NOT  THE  ZONING IS APPROPRIATE FOR LESSEE'S INTENDED USE, AND ACKNOWLEDGES THAT
PAST  USES  OF  THE  PREMISES  MAY  NO LONGER BE ALLOWED. If the Premises do not
comply  with said warranty, Lessor shall, except as otherwise provided, promptly
after  receipt  of written notice from Lessee setting forth with specificity the
nature  and extent of such non-compliance, rectify the same at Lessor's expense.
If  Lessee  does  not  give  Lessor written notice of a non-compliance with this
warranty  within  6  months  following  the  Start  Date,  correction  of  that
non-compliance  shall  be  the  obligation  of  Lessee at Lessee's sole cost and
expense.  If  the Applicable Requirements are hereafter changed so as to require
during  the  term  of  this  Lease  the  construction  of  an  addition to or an
alteration  of  the  Unit,  Premises  and/or  Building,  the  remediation of any
Hazardous  Substance, or the reinforcement or other physical modification of the
Unit,  Premises and/or Building ("CAPITAL EXPENDITURE"), Lessor and Lessee shall
allocate  the  cost  of  such  work  as  follows:

     (a)     Subject to Paragraph 2.3(c) below, if such Capital Expenditures are
required  as a result of the specific and unique use of be Premises by Lessee as
compared  with uses by tenants in general, Lessee shall be fully responsible for
the  cost  thereof,  provided,  however,  that  if  such  Capital Expenditure is
required  during  the  last 2 years of this Lease and the cost thereof exceeds 6

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months'  Base  Rent,  Lessee  may  instead  terminate  this  Lease unless Lessor
notifies  Lessee,  in  writing,  within  10  days  after  receipt  of  Lessee's
termination  notice  that  Lessor has elected to pay the difference between tire
actual  cost  thereof  and  the  amount  equal to 6 months' Base Rent. If Lessee
elects termination, Lessee shall immediately cease the use of the Premises which
requires  such  Capital  Expenditure  and  deliver  to  Lessor  written  notice
specifying a termination date at least 90 days thereafter. Such termination date
shall,  however,  in  no  event  be  earlier than the last day that Lessee could
legally  utilize  the  Premises  without  commencing  such  Capital Expenditure.

     (b)     If  such  Capital Expenditure is not the result of the specific and
unique  use  of the Premises by Lessee (such as, governmentally mandated seismic
modifications),  then Lessor and Lessee shall allocate the obligation to pay for
the  portion  of  such costs reasonably attributable to the Premises pursuant to
the  formula  set  our  in  Paragraph  7.1  (d); provided, however, that if such
Capital  Expenditure  is  required  during  the last 2 years of this Lease or it
Lessor  reasonably  determines  that  it is not economically feasible to pay its
share thereof, Lessor shall have the option to terminate this Lease upon 90 days
prior written notice to Lessee unless Lessee notifies Lessor, in writing, within
10  days  after  receipt of Lessor's termination notice that Lessee will pay for
such  Capital  Expenditure.  If Lessor does not elect to terminate, and fails to
tender  its share of any such Capital Expenditure, Lessee may advance such funds
and  deduct  same,  with  Interest, from Rent until Lessor's share of such costs
have  been  fully paid. If Lessee is unable to finance Lessor's share, or if the
balance  of  the  Rent  due  and  payable for the remainder of this Lease is not
sufficient  to  fully reimburse Lessee on an offset basis, Lessee shall have the
right  to  terminate  this  Lease  upon  30  days  written  notice  to  Lessor.

     (c)     Notwithstanding  the  above,  the  provisions  concerning  Capital
Expenditures  are  intended  to apply only to non-voluntary, unexpected, and new
Applicable  Requirements.  If  the Capital Expenditures are instead triggered by
Lessee  as  a result of an actual or proposed change in use, change in intensity
of use, or modification to the Premises then, and in that event, Lessee shall be
fully  responsible  for the cost thereof, and Lessee shall not have any right to
terminate  this  Lease.

     2.4  ACKNOWLEDGEMENTS. Lessee acknowledges that: (a) it has been advised by
Lessor  and/or  Brokers  to  satisfy itself with respect to the condition of the
Premises  (including  but not limited to the electrical, HVAC and fire sprinkler
systems,  security,  environmental  aspects,  and  compliance  with  Applicable
Requirements and the Americans with Disabilities Act), and their suitability for
Lessee's  intended  use,  (b)  Lessee  has  made  such investigation as it deems
necessary with reference to such matters and assumes all responsibility therefor
as  the  same  relate  to its occupancy of the Premises, and (c) neither Lessor,
Lessor's  agents,  nor  Brokers have made any oral or written representations or
warranties  with  respect to said matters other than as set forth in this Lease.
In addition, Lessor acknowledges that: (i) Brokers have made no representations,
promises  or  warranties  concerning  Lessee's  ability  to  honor  the Lease or
suitability  to occupy the Premises, and (ii) it is Lessor's sole responsibility
to  investigate  the  financial  capability  and/or  suitability of all proposed
tenants.

     2.5  LESSEE  AS  PRIOR  OWNER/OCCUPANT.  The  warranties  made by Lessor in
Paragraph  2  shall  be  of no force or effect if immediately prior to the Start
Date  Lessee  was  the  owner or occupant of the Premises. In such event, Lessee
shall  be  responsible  for  any  necessary  corrective  work.

     2.6  VEHICLE  PARKING.  Lessee  shall  he  entitled  to  use  the number of
Unreserved  Parking  Spaces  and  Reserved Parking Spaces specified in Paragraph
1.2(b)  on  those  portions  of the Common Areas designated from time to time by
Lessor  for  parking. Lessee shall not use more parking spaces than said number.
Said  parking  spaces  shall  be  used  for  parking  by vehicles no larger than
full-size passenger automobiles or pick-up trucks, herein called "PERMITTED SIZE
VEHICLES". Lessor may regulate the loading and unloading of vehicles by adopting
Rules  and  Regulations  as  provided  in  Paragraph 2.9. No vehicles other than
Permitted  Size  Vehicles  may  be  parked  in the Common Area without the prior
written  permission  of  Lessor.

          (a)  Lessee  shall  not permit or allow any vehicles that belong to or
     are  controlled  by  Lessee  or  Lessee's  employees,  suppliers, shippers,
     customers,  contractors  or  invitees  to be loaded, unloaded, or parked in
     areas  other  than  those  designated  by  Lessor  for  such  activities.
          (b)  Lessee  shall  not  service  or  store any vehicles in the Common
     Areas.
          (c)  If  Lessee  permits  or  allows  any of the prohibited activities
     described  in this Paragraph 2.6, then Lessor shall have the right, without
     notice,  in addition to such other rights and remedies that it may have, to
     remove  or  tow  away  the  vehicle involved and charge the cost to Lessee,
     which  cost  shall  be  immediately  payable  upon  demand  by  Lessor.

     2.7  COMMON  AREAS  - DEFINITION. The term "COMMON AREAS" is defined as all
areas  and facilities outside the Premises and within the exterior boundary line
of  the  Project and interior utility raceways and installations within the Unit
that are provided and designated by the Lessor from time to time for the general
non-exclusive  use  of Lessor, Lessee and other tenants of the Project and their
respective  employees, suppliers, shippers, customers, contractors and invitees,
including  parking  areas,  loading  and unloading areas, trash areas, roadways,
walkways,  driveways  and  landscaped  areas.

        2.8     COMMON  AREAS- LESSEE'S RIGHTS. Lessor grants to Lessee, for the
benefit of Lessee 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 Lessor
under  the  terms  hereof  or  under  the  terms of any rules and regulations or
restrictions  governing the use of the Project. Under no circumstances shall the
right  herein  granted to use the Common Areas be deemed to include the right to
store  any  property,  temporarily  or permanently in the Common Areas. Any such
storage  shall  be  permitted  only  by  the  prior written consent of Lessor or
Lessor's  designated  agent,  which  consent  may be revoked at any time. In the
event  that  any  unauthorized  storage  shall occur, then Lessor shall have the
right, without notice, in addition to such other rights and remedies that it may
have,  to remove the property and charge the cost to Lessee, which cost shall be
immediately  payable  upon  demand  by  Lessor.

        2.9          COMMON  AREAS - RULES AND REGULATIONS. Lessor or such other
person(s)  as Lessor may appoint shall have the exclusive control and management
of  the  Common Areas and shall have the right, from time to time, to establish,
modify,  amend  and  enforce  reasonable  rules  and  regulations  ("RULES  AND
REGULATIONS")  for the management, safety, care, and cleanliness of the grounds,
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 Building and the
Project  and  their  invitees. Lessee agrees to abide by and conform to all such
Rules  and  Regulations,  and  to  cause  its  employees,  supplies,  shippers,
customers, contractors and invitees to so abide and conform. Lessor shall not be
responsible  to Lessee for the non-compliance with said Rules and Regulations by
other  tenants  of  the  Project.

        2.10     COMMON  AREAS  -  CHANGES.  Lessor  shall  have  the  right, in
Lessor's  sole  discretion,  from  time  to  time:

     (a)  To  make  changes  to the Common Areas, including, without limitation,
changes in the location, 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;
     (b)  To  close temporarily any of the Common Areas for maintenance purposes
so  long  as  reasonable  access  to  the  Premises  remains  available;
     (c)  To  designate other land outside the boundaries of the Project to be a
part  of  the  Common  Areas;
     (d)  To  add  additional  buildings  and  improvements to the Common Areas;
     (e)  To  use  the  Common  Areas  while  engaged  in  making  additional
improvements, repairs or alterations to the Project, or any portion thereof; and
     (f)     To  do  and perform such other acts and make such other changes in,
to  or  with  respect  to  the  Common  Areas  and Project as Lessor may, in the
exercise  of  sound  business  judgment,  deem  to  be  appropriate.

3.     TERM

        3.1     TERM.  The  Commencement Date, Expiration Date and Original Term
of  this  Lease  are  as  specified  in  Paragraph  1.3.
        3.2     EARLY  POSSESSION.  If  Lessee totally or partially occupies the
Premises  prior  to the Commencement Date, the obligation to pay Base Rent shall
be abated for the period of such early possession. All other terms of this Lease
(including  but  not  limited to the obligations to pay Lessee's Share of Common
Area  Operating  Expenses,  Real  Property  Taxes  and insurance premiums and to
maintain the Premises) shall, however, be in effect during such period. Any such
early  possession  shall  not  affect  the  Expiration  Date.

                                  Page 2 of 12

  1998  -  American  Industrial  Real  Estate  Association     REVISED
FORM  MTG-2-11/98E
<PAGE>

        3.3     DELAY  IN POSSESSION. Lessor agrees to use its best commercially
reasonable  efforts  to  deliver  possession  of  the  Premises to Lessee by the
Commencement  Date.  If,  despite  said  efforts,  Lessor  is  unable to deliver
possession as agreed, Lessor shall not be subject to any liability therefor, nor
shall such failure affect the validity of this Lease. Lessee shall not, however,
be  obligated  to  pay  Rent  or perform its other obligations until it receives
possession  of the Premises. If possession is not delivered within 60 days after
the Commencement Date, Lessee may, at its option, by notice in writing within 10
days  after the end of such 60 day period, cancel this Lease, in which event the
Parties  shall  be  discharged  from, all obligations hereunder. If such written
notice  is  not  received by Lessor within said 10 day period, Lessee's right to
cancel  shall  terminate.  Except  as  otherwise  provided, if possession is not
tendered  to  Lessee by the Start Date and Lessee does not terminate this Lease,
as  aforesaid,  any  period  of  rent abatement that Lessee would otherwise have
enjoyed  shall  run  from  the date of delivery of possession and continue for a
period equal to what Lessee would otherwise have enjoyed under the terms hereof,
but  minus  any  days of delay caused by the acts or missions of this Lessee. If
possession  of  the  Premises  is  not  delivered  within  4  months  after  the
Commencement  Date,  this  Lease  shall  terminate  unless  other agreements are
reached  between  Lessor  and  Lessee,  in  writing.

        3.4     LESSEE  COMPLIANCE.  Lessor  shall  not  be  required  to tender
possession  of  the Premises to Lessee until Lessee complies with its obligation
to  provide  evidence  of  insurance  (Paragraph  8.5). Pending delivery of such
evidence,  Lessee shall be required to perform all of its obligations under this
Lease  from  and  after  the  Start  Date,  including  the  payment  of  Rent,
notwithstanding Lessor's election to withhold possession pending receipt of such
evidence  of  insurance.  Further  if  Lessee  is  required to perform any other
conditions  prior  to  or  concurrent  with the Start Date, the Start Date shall
occur  but  Lessor  may  elect  to withhold possession until such conditions are
satisfied.

4.     RENT
        4.1     RENT DEFINED. All monetary obligations of Lessee to Lessor under
the  terms of this Lease (except for the Security Deposit) are deemed to be rent
("RENT").
        4.2     COMMON  AREA  OPERATING  EXPENSES.  Lessee  shall  pay to Lessor
during  the  term  hereof,  in  addition  to  the  Base Rent, Lessee's Share (as
specified  in  Paragraph  1.6)  of  all  Common  Area  Operating  Expenses,  as
hereinafter  defined,  during  each calendar year  of the term of this Lease, in
accordance  with  the  following  provisions:
     (a)     "COMMON  AREA OPERATING EXPENSES" are defined, for purposes of this
Lease,  as  all  costs  incurred  by  the  Lessor  relating to the ownership and
operation  of  the  Project,  including,  but  not  limited  to,  the following:
          (i)          The  operation,  repair  and maintenance, in neat, clean,
good order and condition, but not the replacement (see subparagraph (e)), of the
following:
               (aa)     The Common Areas and Common Area improvements, including
parking  areas,  loading  and  unloading areas, trash areas, roadways, parkways,
walkways,  driveways, landscaped areas, bumpers, irrigation systems, Common Area
lighting  facilities,  fence  and  gates,  elevators,  roofs,  and roof drainage
systems.
               (bb)     Exterior  signs  and  any  tenant  directories.
               (cc)     Any  fire  sprinkler  systems
          (ii)     The  cost  of  water,  gas, electricity and telephone to
service  the  Common  Areas  and  any  utilities  not  separately  metered.
          (iii)    Trash  disposal,  pest  control  services,  property
management,  security  services, and the costs of any environmental inspections.
          (iv)     Reserves  set  aside  for  maintenance  and repair of
the Common Areas.
          (v)      Any increase above the Base Real Property Taxes (as
defined in Paragraph 10).
          (vi)     Any  "Insurance  Cost  Increase"  (as  defined  in
Paragraph  8).
          (vii)    Any  deductible  portion of an insured loss concerning the
Building or the  Common  Areas.
          (viii)   The  cost  of  any Capital Expenditure to the Building of
the  Project not covered under the Provisions of Paragraph 2.3 provided; however
that  Lessor  shall  allocate the cost of any such Capital Expenditure over a 12
year  period  an Lessee shall not be required to pay more than Lessee's Share of
1/144th  of  the  cost  of  such  Capital  Expenditure  in  any  given  month.
          (ix)     Any  other  services  to  be provided by Lessor that are
stated  elsewhere  in  this  Lease  to  be  a  Common  Area  Operating  Expense.

     (b)     Any Common Area Operating Expenses and Real Property Taxes that are
specifically attributable to the Unit, the Building, or to any other building in
the  Project,  or  to  the  operation,  repair and maintenance thereof, shall be
allocated entirely to such Unit, Building or other building. However, any Common
Area  Operating  Expenses  and  Real  Property  Taxes  that are not specifically
attributable  to  the  Building  or  to  any other building or to the operation,
repair  and  maintenance  thereof, shall be equitably allocated by Lessor to all
buildings  in  the  Project.
     (c)     The  inclusion  of  the  improvements,  facilities and services set
forth  in  Subparagraph  4.2(a) shall not be deemed to impose an obligation upon
Lessor  to  either  have  said  improvements  or  facilities or to provide those
services  unless  the  Project already has the same, Lessor already provides the
services,  or  Lessor  has agreed elsewhere in this Lease to provide the same or
some  of  them.
     (d)     <Stike-out>
     (e)     When  a  capital  component such as the roof, foundations, exterior
walls  or  a  Common  Area  capital improvement, such as the parking lot paving,
elevators,  fences, etc. requires replacement rather than repair or maintenance,
Lessor  shall,  at  Lessor's  expense, be responsible for such replacement. Such
expenses  and/or  costs  are  not  Common  Area  Operating  Expenses.
        4.3     PAYMENT.  Lessee  shall  cause payment of Rent to be received by
Lessor in lawful money of the United States, without offset or deduction (except
as  specifically  permitted  in  this Lease) on or before the day on which it is
due. Rent for any period during the term, hereof which is for less than one full
calendar  month  shall  be prorated based upon the actual number of days of said
month.  Payment  of Rent shall be made to Lessor at its address stated herein or
to  such  other  persons  or  place as Lessor may from time to time designate in
writing.  Acceptance  of  a payment which is less than the amount then due shall
not  be  a  waiver of Lessor's rights to the balance of such Rent, regardless of
Lessor's  endorsement  of  any  check  so  stating. In the event that any check,
draft,  or  other  instrument of payment given by Lessee to Lessor is dishonored
for  any  reason,  Lessee  agrees  to  pay  to  Lessor  the  sum  of  $25.

5.     SECURITY  DEPOSIT. Lessee shall deposit with Lessor upon execution hereof
the  Security  Deposit  as  security  for  Lessee's  faithful performance of its
obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults
under  this  Lease,  Lessor  may use, apply or retain all or any portion of said
Security  Deposit  for  the  payment of any amount due Lessor or to reimburse or
compensate  Lessor  for  any liability, expense, loss or damage which Lessor may
suffer  or incur by reason thereof. If Lessor uses or applies all or any portion
of  the  Security  Deposit  Lessee  shall  within  30 days after written request
therefor  deposit monies with Lessor sufficient to restore said Security Deposit
to the full amount required by this Lease. If the Base Rent increases during the
term  of  this  Lease,  Lessee  shall  upon written request from Lessor, deposit
additional  monies  with Lessor so that the total amount of the Security Deposit
shall  at  all  times bear the same proportion to the increased Base Rent as the
initial Security Deposit bore to the initial Base Rent. Should the Agreed Use be
amended  to  accommodate  a  material  change  in  the  business of Lessee or to
accommodate a sublessee or assignee, Lessor shall have the right to increase the
Security  Deposit  to  the extent necessary, in Lessor's reasonable judgment, to
account for any increased wear and tear that the Premises may suffer as a result
thereof. If a change in control of Lessee occurs during this Lease and following
such  change  the  financial  condition  of  Lessee  is  in  Lessor's reasonable
judgment,  significantly  reduced,  Lessee  shall deposit such additional monies
with  Lessor  as  shall  be  sufficient to cause the Security Deposit to be at a
commercially  reasonable  level  based  on  such  change in financial condition.
Lessor  shall  not  be  required  to keep the Security Deposit separate from its
general  accounts.  Within  14  days after the expiration or termination of this
Lease,  if  Lessor elects to apply the Security Deposit only to unpaid Rent, and
otherwise  within  30  days  after  the  Premises  have been vacated pursuant to
Paragraph 7,4(c) below, Lessor shall return that portion of the Security Deposit
not  used  or  applied  by  Lessor.  No  part  of  the Security Deposit shall be
considered  to  be  held  in trust, to bear interest or to be prepayment for any
monies  to  be  paid  by  Lessee  under  this  Lease.

6.     USE.
        6.1          USE.  Lessee shall use and occupy the Premises only for the
Agreed  Use,  or any other legal use which is reasonably comparable thereto, and
for  no other purpose. Lessee shall not use or permit the use of the Premises in
a manner that is unlawful, creates damage, waste or a nuisance, or that disturbs
occupants  of  or  causes  damage  to neighboring premises or properties. Lessor
shall  not unreasonably withhold or delay its consent to any written request for
a  modification  of  the  Agreed  Use,  so  long as the same will not impair the
structural  integrity  of  the improvements on the Premises or the mechanical or
electrical  systems  therein, and/or is not significantly more burdensome to the
Premises. If Lessor elects to withhold consent, Lessor shall within 7 days after
such  request  give  written notification of same, which notice shall include an
explanation  of  Lessor's  objections  to  the  change  in  the  Agreed  Use.

                                  Page 3 of 12

  1998  -  American  Industrial  Real  Estate  Association     REVISED
FORM  MTG-2-11/98E
<PAGE>

        6.2          HAZARDOUS  SUBSTANCES.
               (a)     REPORTABLE  USES  REQUIRE  CONSENT.  The  term "HAZARDOUS
SUBSTANCE"  as  used  in  this  Lease shall mean any product, substance or waste
whose  presence,  use, manufacture, disposal, transportation, or release, either
by itself or in combination with other materials expected to be on the Premises,
is  either:  (i)  potentially injurious to the public health, safety or welfare,
the environment or the Premises, (ii) regulated or monitored by any governmental
authority,  or  (iii)  a  basis  for  potential  liability  of  Lessor  to  any
governmental  agency  or  third party under any applicable statute or common law
theory. Hazardous Substances shall include, but not be limited to, hydrocarbons,
petroleum,  gasoline, and/or crude oil or any products, by-products or fractions
thereof.  Lessee  shall  not  engage in any activity in or on the Premises which
constitutes  a  Reportable Use of Hazardous Substances without the express prior
written  consent  of Lessor and timely compliance (at Lessee's expense) with all
Applicable Requirements. "REPORTABLE USE" shall mean (i) the installation or use
of  any  above  or  below  ground storage tank, (ii) the generation, possession,
storage, use, transportation, or disposal of a Hazardous Substance that requires
a  permit  from,  or  with  respect  to  which a report, notice, registration or
business  plan  is  required to be filed with any governmental authority, and/or
(iii)  the  presence  at  the  Premises of a Hazardous Substance with respect to
which  any  Applicable  Requirements  requires that a notice be given to persons
entering  or  occupying  the Premises or neighboring properties. Notwithstanding
the  foregoing,  Lessee  may use any ordinary and customary materials reasonably
required  to be used in the normal course of the Agreed Use, so long as such use
is  in compliance with all Applicable Requirements, is not a Reportable Use, and
does  not  expose the Premises or neighboring property to any meaningful risk of
contamination or damage or expose Lessor to any liability therefor. In addition,
Lessor  may  condition  its  consent  to  any Reportable Use upon receiving such
additional  assurances  as  Lessor reasonably deems necessary to protect itself,
the  public,  the Premises and/or the environment against damage, contamination,
injury  and/or  liability,  including, but not limited to, the installation (and
removal  on  or  before  Lease  expiration  or  termination)  of  protective
modifications  (such  as  concrete  encasements)  and/or increasing the Security
Deposit.
     (b)     DUTY  TO INFORM LESSOR. if Lessee knows, or has reasonable cause to
believe,  that a Hazardous Substance has come to be located in on under or about
the  Premises,  other  than  as  previously consented to by Lessor, Lessee shall
immediately  give written notice of such fact to Lessor, and provide Lessor with
a  copy  of  any  report,  notice,  claim  or  other  documentation which it has
concerning  the  presence  of  such  Hazardous  Substance.
     (c)  LESSEE  REMEDIATION.  Lessee  shall  not cause or permit any Hazardous
Substance  to  be  spilled  or  released  in,  on,  under, or about the Premises
(including  through the plumbing or sanitary sewer system) and shall promptly at
Lessee's  expense,  take  all  investigatory  and/or  remedial action reasonably
recommended, whether or not formally ordered or required, for the cleanup of any
contamination  of,  and  for  the maintenance, security and/or monitoring of the
Premises or neighboring properties, that was caused or materially contributed to
by  Lessee,  or  pertaining to or involving any Hazardous Substance brought onto
the  Premises  during  the  term  of  this Lease, by or for Lessee, or any third
party.
     (d)     LESSEE  INDEMNIFICATION.  Lessee  shall  indemnify, defend and hold
Lessor,  its  agents, employees, lenders and ground lessor, if any harmless from
and  against  any  and all loss of rents and/or damages, liabilities, judgments,
claims, expenses, penalties, and attorneys' and consultants' fees arising out of
or involving any Hazardous Substance brought onto the Premises by or for Lessee,
or  any third party (provided however, that Lessee shall have no liability under
this  Lease  with  respect  to  underground migration of any Hazardous Substance
under  the  Premises  from  areas  outside of the Project). Lessee's obligations
shall include, but not be limited to, the effects of any contamination or injury
to  person,  property  or the environment created or suffered by Lessee, and the
cost  of  investigation, removal, remediation, restoration and/or abatement, and
shall  survive  the  expiration  or  termination  of this Lease. No termination,
cancellation  or  release  agreement  entered  into  by  Lessor and Lessee shall
release  Lessee  from its obligations under this Lease with respect to Hazardous
Substances,  unless  specifically  so agreed by Lessor in writing at the time of
such  agreement.
     (e)  LESSOR  INDEMNIFICATION.  Lessor  and its successors and assigns shall
indemnify,  defend,  reimburse  and  hold  Lessee,  its  employees  and lenders,
harmless  from and against any and all environmental damages, including the cost
of remediation which existed as a result of Hazardous Substances on the Premises
prior  to  the Start Date or which are caused by the gross negligence or willful
misconduct  of Lessor, its agents or employees. Lessor's obligations as and when
required  by  the Applicable Requirements, shall include, but not be limited to,
the  cost  of investigation, removal, remediation, restoration and/or abatement.
and  shall  survive  the  expiration  or  termination  of  this  Lease.
     (f) INVESTIGATIONS AND REMEDIATIONS. Lessor shall retain the responsibility
and  pay for any investigations or remediation measures required by governmental
entities  having  jurisdiction  with  respect  to  the  existence  of  Hazardous
Substances  on  the  Premises  prior  to  the Start Date unless such remediation
measure  is  required  as  a  result of Lessee's use (including "Alterations" as
defined  in paragraph 7.3(a) below) of the Premises, in which event Lessee shall
be  responsible  for  such  payment.  Lessee  shall  cooperate fully in any such
activities  at  the  request  of  Lessor, including allowing Lessor and Lessor's
agents to have reasonable access to the Premises at reasonable times in order to
carry  out  Lessor's  investigative  and  remedial  responsibilities.
     (g)  LESSOR  TERMINATION  OPTION.  If  a Hazardous Substance Condition (see
Paragraph 9.1(e)) occurs during the term of this Lease, unless Lessee is legally
responsible  therefor  in  which  case  Lessee  shall make the investigation and
remediation thereof required by the Applicable Requirements and this Lease shall
continue  in  full  force  and  effect,  but  subject  to  Lessor's rights under
Paragraph  6.2(d)  and  Paragraph  3), Lessor may at Lessor's option, either (i)
investigate  and  remediate  such Hazardous Substance Condition, if required, as
soon as reasonably possible at Lessor's expense, in which event this Lease shall
<PAGE>
continue  in  full  force and effect, or (ii) if the estimated cost to remediate
such  condition  exceeds  12  times  the  then  monthly  Base  Rent or $100,000,
whichever  is  greater,  give  written  notice  to  Lessee, within 30 days after
receipt  by  Lessor  of  knowledge of the occurrence of such Hazardous Substance
Condition,  of  Lessor's  desire  to terminate this Lease as of the date 60 days
following  the  date  of  such  notice.  In  the  event  Lessor elects to give a
termination  notice,  Lessee may, within 30 days thereafter, give written notice
to  Lessor  of  Lessee's  commitment  to pay the amount by which the cost of the
remediation  of such Hazardous Substance Condition exceeds an amount equal to 12
times the then monthly Base Rent or $100,000, whichever is greater. Lessee shall
provide Lessor with said funds, or satisfactory assurance thereof within 30 days
following  such  commitment.  In  such  event, this Lease shall continue in full
force  and  effect, and Lessor shall proceed to make such remediation as soon as
reasonably  possible  after the required funds are available. If Lessee does not
give  such notice and provide the required funds or assurance thereof within the
time  provided,  this Lease shall terminate as of the date specified in Lessor's
notice  of  termination.
        6.3     LESSEE'S  COMPLIANCE  WITH  APPLICABLE  REQUIREMENTS.  Except as
otherwise provided in this Lease, Lessee shall, at Lessee's sole expense, fully,
diligently  and  in  a  timely  manner,  materially  comply  with all Applicable
Requirements,  the  requirements of any applicable fire insurance underwriter or
rating  bureau, and the recommendations of Lessor's engineers and/or consultants
which  relate  in  any  manner  to  the Premises, without regard to whether said
requirements  are now in effect or become effective after the Start Date. Lessee
shall  within  10  days after receipt of Lessor's written request provide Lessor
with copies of all permits and other documents, and other information evidencing
Lessee's  compliance  with  any Applicable Requirements specified by Lessor, and
shall  immediately  upon  receipt,  notify Lessor in writing (with copies of any
documents  involved)  of  any  threatened  or  actual  claim,  notice, citation,
warning, complaint or report pertaining to or involving the failure of Lessee or
the  Premises  to  comply  with  any  Applicable  Requirements.
        6.4     INSPECTION; COMPLIANCE. Lessor and Lessor's "LENDER" (as defined
in  Paragraph 30) and consultants shall have the right to enter into Premises at
any  time,  in  the case of an emergency, and otherwise at reasonable times upon
prior  notice,  for  the purpose of inspecting the condition of the Premises and
for  verifying  compliance  by  Lessee  with  this  Lease.  The cost of any such
inspections  shall  be  paid  by  Lessor,  unless  a  violation  of  Applicable
Requirements,  or  a  contamination  is  found  to  exist or be imminent, or the
inspection  is  requested  or ordered by a governmental authority. In such case,
Lessee  shall  upon request reimburse Lessor for the cost of such inspection, so
long as such inspection is reasonably related to the violation or contamination.

7.     MAINTENANCE;  REPAIRS;  UTILITY  INSTALLATIONS;  TRADE  FIXTURES  AND
       ALTERATIONS.
        7.1     LESSEE'S  OBLIGATIONS.
          (a)     IN  GENERAL.  Subject  to  provisions  of  Paragraph  2.2
(Condition),  2.3  (Compliance),  6.3  (Lessees  Compliance  with  Applicable
Requirements),  7.2  (Lessor's  Obligations),  9 (Damage or Destruction), and 14
(Condemnation),  Lessee  shall,  at  Lessee's  sole  expense  keep the Premises,
Utility  Installations  (intended  for  Lessee's  exclusive use, no matter where
located),  and  Alterations  in good order, condition and repair (whether or not
the  portion  of  the  Premises requiring repairs, or the means of repairing the
same,  are  reasonably  or  readily accessible to Lessee, and whether or not the
need  for  such  repairs  occurs as a result of Lessee's use, any prior use, the
elements or the age of such portion of the Premises), including, but not limited
to,  all  equipment or facilities, such as plumbing, HVAC equipment, electrical,
lighting  facilities,  boilers,  pressure  vessels,  fixtures,  interior  walls,
interior  surfaces  of  exterior  walls, ceilings, floors, windows, doors, plate
glass,  and  skylights  but  excluding any items which are the responsibility of
Lessor pursuant to Paragraph 7.2. Lessee, in keeping the Premises in good order,
condition  and  repair,  shall  exercise and perform good maintenance practices,
specifically  including the procurement and maintenance of the service contracts
required  by  Paragraph  7.1(b)  below.  Lessee's  obligations  shall  include
restorations,  replacements  or renewals when necessary to keep the Premises and
all improvements thereon or a part thereof in good order, condition and state of
repair.
     (b)     SERVICE  CONTRACTS. Lessee shall, at Lessee's sole expense, procure
and  maintain  contracts, with copies to Lessor, in customary form and substance
for, and with contractors specializing and experienced in the maintenance of the
following  equipment  and  improvements,  it  any,  if and when installed on the
Premises:  (i)  HVAC  equipment,  (ii)  boiler  and  pressure  vessels,  (iii)
clarifiers,  and  (iv)  any  other  equipment, if reasonably required by Lessor.
However,  Lessor  reserves  the  right,  upon  notice  to Lessee, to procure and
maintain  any  or all of such service contracts, and if Lessor so elects, Lessee
shall  reimburse  Lessor,  upon  demand,  for  the  cost  thereof.
     (c)     FAILURE TO PERFORM. If Lessee fails to perform Lessee's obligations
under  this  Paragraph

<PAGE>

7.1,  Lessor  may enter upon the Premises after 10 days' prior written notice to
Lessee  (except  in  the  case of an emergency, in which case no notice shall be
required),  perform such obligations on Lessee's behalf, and put the Premises in
good order, condition and repair, and Lessee shall promptly reimburse Lessor for
the  cost  thereof.
     (d)     REPLACEMENT.  Subject  to Lessee's indemnification of Lessor as set
forth  in  Paragraph  8.7  below,  and  without  relieving  Lessee  of liability
resulting  from  Lessee's  failure  to  exercise  and  perform  good maintenance
practices,  if  an  item  described in Paragraph 7.1(b) cannot be repaired other
than  at  a  cost  which is in excess of 50% of the cost of replacing such item,
then  such  item  shall  be  replaced  by  Lessor, and the cost thereof shall be
prorated  between  the  Parties  and Lessee shall only be obligated to pay, each
month  during the remainder of the term of this Lease, on the date on which Base
Rent  is  due,  an  amount  equal to the product of multiplying the cost of such
replacement by a fraction, the numerator of which is one, and the denominator of
which  is 144 (i.e. 1/144th of the cost per month). Lessee shall pay interest on
the  unamortized  balance  at  a  rate  that  is  commercially reasonable in the
judgment  of Lessor's accountants. Lessee may, however, prepay its obligation at
any  time.
        7.2     LESSOR'S  OBLIGATIONS.  Subject  to the provisions of Paragraphs
2.2  (Condition),  2.3  (Compliance),  4.2  (Common  Area Operating Expenses), 6
(Use),  7.1  (Lessee's  Obligations),  9  (Damage  or  Destruction)  and  14
(Condemnation),  Lessor,  subject  to  reimbursement pursuant to Paragraph 4.2.,
shall  keep in good order, condition and repair the foundations, exterior walls,
structural  condition  of  interior bearing walls, exterior roof, fire sprinkler
system,  Common  Area  fire alarm and/or smoke detection systems, fire hydrants,
parking  lots,  walkways,  parkways,  driveways,  landscaping, fences, signs and
utility  systems  serving  the  Common  Areas  and all parts thereof, as well as
providing  the  services  for  which  there  is  a Common Area Operating Expense
pursuant  to  Paragraph 4.2. Lessor shall not be obligated to paint the exterior
or  interior  surfaces  of  exterior  walls  nor  shall  Lessor  be obligated to
maintain,  repair  or  replace  windows,  doors  or plate glass of the Premises.
Lessee expressly waives the benefit of any statute now or hereafter in effect to
the  extent  it  is  inconsistent  with  the  terms  of  this  Lease.

                                  Page 4 of 12

  1998  -  American  Industrial  Real  Estate  Association     REVISED
FORM  MTG-2-11/98E

<PAGE>

7.3     UTILITY  INSTALLATIONS;  TRADE  FIXTURES;  ALTERATIONS.
     (a)     DEFINITIONS.  The  term "Utility Installations" refers to all floor
and window coverings, air lines, power panels, electrical distribution, security
and  fire  protection  systems,  communication  systems, lighting fixtures, HVAC
equipment, plumbing and fencing in or on the Premises. The term "TRADE FIXTURES"
shall  mean  Lessee's  machinery and equipment that can be removed without doing
material  damage  to  the  Premises.  The  terns  "ALTERATIONS"  shall  mean any
modification  of  the  improvements,  other  than Utility Installations or Trade
Fixtures,  whether  by  addition  or  deletion. "LESSEE OWNED ALTERATIONS AND/OR
UTILITY  INSTALLATIONS"  are defined as Alterations and/or Utility Installations
made  by  Lessee  that  are not yet owned by Lessor pursuant to Paragraph 7.4(a)
such  consent  not  to  be  unreasonably  withheld,  delayed  or  conditioned.
     (b)     CONSENT.  Lessee  shall  not  make  any  Alterations  or  Utility
Installations  to  the Premises without Lessor's prior written consent.   Lessee
may,  however, make non-structural Utility Installations  to the interior of the
Premises (excluding the roof) without such consent but upon notice to Lessor, as
long  as  they  are  not  visible  from  the outside, do not involve puncturing,
relocating  or  removing the roof or any existing walls, and the cumulative cost
thereof  during  this  Lease  as  extended  does  not  exceed a sum equal to one
month's  Base  Rent  in the aggregate or a sum equal to one month's Base Rent in
any  one  year.  Notwithstanding  the foregoing. Lessee shall not make or permit
any  roof  penetrations  and/or  install  anything on the roof without the prior
written  approval  of  Lessor.  Lessor  may,  as a precondition to granting such
approval,  require  Lessee  to  utilize  a  contractor chosen and/or approved by
Lessor.  Any  Alterations  or  Utility Installations that Lessee shall desire to
make and which require the consent of the Lessor shall be presented to Lessor in
written  form  with  detailed  plans.  Consent  shall be deemed conditioned upon
Lessee's:  (i)acquiring  all  applicable  governmental  permits, (ii) furnishing
Lessor with copies of both the permits and the plans and specifications prior to
commencement  of  the  work,  and  (iii)  compliance with all conditions of said
permits  and  other  Applicable Requirements in a prompt and expeditious manner.
Any  Alterations  or  Utility  installations shall be performed in a workmanlike
manner with good and sufficient materials. Lessee shall promptly upon completion
furnish  Lessor  with as-built plans and specifications. For work which costs an
amount  in  excess  of  one month's Base Rent, Lessor may conditions its consent
upon  Lessee  providing a lien and completion bond in an amount equal to 150% of
the  estimated  cost  of  such  Alteration  or  Utility Installation and/or upon
Lessee's  posting  an  additional  Security  Deposit  with  Lessor.
     (C)  INDEMNIFICATION.  Lessee  shall pay, when due, all claims for labor or
materials furnished or alleged to have been furnished to or for Lessee at or for
use  on  the  Premises,  which claims are or may be secured by any mechanic's or
material  men's claim against the Premises or any interest therein. Lessee shall

<PAGE>

give  Lessor  not less than 10 days notice prior to the commencement of any work
in, on or about the Premises, and Lessor shall have the right to post notices of
non-responsibility. If Lessee shall contest the validity of any such lien, claim
or  demand,  then  Lessee  shall, at its sole expense defend and protect itself,
Lessor  and  the  Premises  against  the same and shall pay and satisfy any such
adverse judgment that may be rendered thereon before The enforcement thereof, if
Lessor  shall  require, Lessee shall furnish a surety bond in an amount equal to
150%  of the amount of such contested lien, claim or demand, indemnifying Lessor
against  liability  for  the  same,  if Lessor elects to participate in any such
action,  Lessee  shall  pay  Lessor's  attorneys'  and  costs.
     7.4     OWNERSHIP;  REMOVAL;  SURRENDER;  AND  RESTORATION.
     (a)     OWNERSHIP.  Subject  to  Lessor's right to require removal or elect
ownership  as  hereinafter  provided,  all Alterations and Utility Installations
made  by  Lessee  shall  be the property of Lessee, but considered a part or the
Premises.  Lessor  may,  at any time, elect in writing to be the owner of all or
any  specified  part  of the Lessee Owned Alterations and Utility Installations.
<Strike-out>
     (b)     REMOVAL.  By  delivery  to Lessee of written notice from Lessor not
earlier  than 90 and not later than 30 days prior to the end of the term of this
Lease  Lessor  may  require  that any or all Lessee Owned Alterations or Utility
Installations  be removed by the expiration or termination of this Lease. Lessor
may  require  the  removal  at  any  time of all or any part of any Lessee Owned
Alterations  or  Utility  Installations  made  without  the  required  consent.
     (c)     SURRENDER;  RESTORATION. Lessee shall surrender the Premises by the
Expiration  Date  or any earlier termination date, with all of the improvements,
parts and surfaces thereof broom clean and free of debris, and in good operating
order.,  condition  and  state  of  repair,  ordinary  wear  and  tear excepted.
"ordinary  wear  and  tear"  shall  not include any damage or deterioration that
would  have  been  prevented  by good maintenance practice.  Notwithstanding the
foregoing,  if  this Lease is for 12 months or less, then Lessee shall surrender
the Premises in the same condition as delivered to Lessee on the Start Date with
NO  allowance  for  ordinary  wear  and  tear.  Lessee  shall  repair any damage
occasioned by the installation, maintenance or removal of Trade Fixtures, Lessee
owned  Alterations  and/or  Utility  installations, furnishing, and equipment as
well as the removal of any storage tank installed by or for Lessee. Lessee shall
also  completely  remove  from  the  Premises  any  and all Hazardous Substances
brought onto the Premises by or for Lessee, or any third party (except Hazardous
Substances  which were deposited via underground migration from areas outside of
the  Project)  even  if  such removal would require Lessee to perform or pay for
work  that  exceeds  statutory  requirements.  Trade  Fixtures  shall remain the
property  of  Lessee  and  shall  be removed by Lessee. The failure by Lessee to
timely  vacate the Premise pursuant to this Paragraph 7.4(c) without the express
written  consent  of  Lessor shall constitute a holdover under the provisions of
Paragraph  26  below.

8.     INSURANCE;  INDEMNITY.
     8.1     PAYMENT  OF  PREMIUM  INCREASES.
          (a)     As  used herein, the term "INSURANCE COST INCREASE" is defined
as  any  increase in the actual cost of the insurance applicable to the Building
and/or  lie Project and required to be carried by Lessor, pursuant to Paragraphs
8.2(b),  8.3(a)  and  8.3(b).  ("Required  Insurance"),  over and above the Base
Premium,  as hereinafter defined, calculated on an annual basis.  Insurance Cost
increase  shall include, but not be limited to, requirements of the  holder of a
mortgage  or  deed  of  trust  covering  the  Premises, Building and/or Project,
increased  valuation  of the Premises, Building and/or Project, and/or a general
premium  rate  increase.  The  term  Insurance Cost Increase shall not, however,
include  any premium increases resulting from the nature of the occupancy of any
other tenant of The Building. If the parties insert a dollar amount in Paragraph
1.9,  such amount shall be considered the "BASE PREMIUM." The base Premium shall
be  the  annual  premium applicable to the 12 month period immediately preceding
The  Start  Date.  If,  however, the Protect was not insured for the entirety of
such  12 months period, then the Base Premium shall be the lowest annual premium
reasonably  obtainable for the Required insurance as of the Start Date, assuming
the  most  nominal  use  possible  of  the Building. In no event, however, shall
Lessee  be  responsible  for  any  portion  of  the premium cost attributable to
liability  insurance  coverage  in excess of $2,000,000 procured under Paragraph
8.2(b).
     (b)     Lessee  shall pay any insurance Cost Increase to Lessor pursuant to
Paragraph  4.2.  Premiums  for  policy periods commencing prior to, or extending
beyond,  the  term  of  this  Lease  shall  be  prorated  to  coincide  with the
corresponding  Start  Date  or  Expiration  Date.
8.2     LIABILITY  INSURANCE.
     (a)     CARRIED  BY  LESSEE.  Lessee  shall  obtain  and  keep  in  force a
Commercial General Liability policy of insurance protecting Lessee and Lessor as

<PAGE>

an  additional  insured  against  claims  for bodily injury, personal injury and
property  damage  based  upon or arising out of the ownership, use, occupancy or
maintenance  of  the  Premises and all areas appurtenant thereto. Such insurance
shall be on an occurrence basis providing single limit coverage in an amount not
less  than  $1,000,000  per occurrence with an annual aggregate of not less than
$2,000,000, an "Additional Insured-Managers or Lessor's of Premises Endorsement"
and  contain  the  "Amendment of The Pollution Exclusion Endorsement" for damage
caused  by  heat,  smoke  or  fumes  from  a hostile fire.  The policy shall not
contain  any  intra-insured  exclusions  as  between  insured  persons  or
organizations, but shall include coverage for liability assumed under this Lease
as  an  "INSURED CONTRACT" for the performance of Lessee's indemnity obligations
under  this  Lease.  The  limits of said insurance shall not, however, limit the
liability  of  Lessee  nor  relieve  Lessee  of  any  obligation  hereunder. All
insurance  carried  by  Lessee shall be primary to and not contributory with any
similar  insurance carried by Lessor, whose insurance shall be considered excess
insurance  only.
     (b)     CARRIED  BY  LESSOR.  Lessor  shall maintain liability insurance as
described in Paragraph 8.2(a), in addition to, and not in lieu of, the insurance
required  to be maintained by Lessee. Lessee shall not be named as an additional
insured  therein.
     8.3     PROPERTY INSURANCE  .  BUILDING,  IMPROVEMENTS  AND  RENTAL  VALUE.
     (a)     BUILDING  AND IMPROVEMENTS. Lessor shall obtain and keep in force a
policy  or  policies  of  insurance  in the name of Lessor, with loss payable to
Lessor,  any  ground-lessor,  and  to  any Lender insuring loss or damage to the
Premises.  The  amount  of such insurance shall be equal to the full replacement
cost  of  the Premises, as the same shall exist from time to time, or the amount
required  by  any  Lender, but in no event more than the commercially reasonable
and  available  insurable  value  thereof.  Lessee Owned Alterations and Utility
Installations,  Trade  Fixtures, and Lessee's personal property shall be insured
by  Lessee  under  Paragraph  8.4. If the coverage is available and commercially
appropriate,  such  policy  or policies shall insure against all risks of direct
physical  loss  or  damage  (except the perils of flood and/or earthquake unless
required by a Lender), including coverage for debris removal and the enforcement
of  any  Applicable  Requirements  requiring  the  upgrading,  demolition,
reconstruction  or replacement of any portion of the Premises as the result of a
covered  loss.  Said  policy  or policies shall also contain an agreed valuation
provision  in  lieu  of  any  coinsurance  clause,  waiver  of  subrogation, and
inflation  guard protection causing an increase in the annual property insurance
coverage  amount  by  a  factor  of not less than the adjusted U.S Department of
Labor Consumer Price index for All Urban Consumers for the city nearest to where
the  Premises  are  located. if such insurance coverage has a deductible clause,
the  deductible  amount  shall  not  exceed  $10,000  per  occurrence,
     (b)     RENTAL  VALUE.  Lessor shall also obtain and keep in force a policy
or  policies  in  the name of Lessor with loss payable to Lessor and any Lender,
insuring  the  loss  of  the  full  Rent for one year with an extended period of
indemnity  for an additional 180 days ("RENTAL VALUE INSURANCE"). Said insurance
shall  contain  an agreed valuation provision in lieu of any coinsurance clause,
and  the  amount of coverage shall be adjusted annually to reflect the projected
Rent  otherwise  payable  by  Lessee,  for  the  next  12  month  period.
     (c)  ADJACENT  PREMISES.  Lessee shall pay for any increase in the premiums
for  the  property  insurance  of the Building and for the Common Areas or other
buildings in the Project if said increase is caused by Lessee's acts, omissions,
use  or  occupancy  of  the  Premises.

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  1998  -  American  Industrial  Real  Estate  Association     REVISED
FORM  MTG-2-11/98E
<PAGE>

 (d) LESSEE'S IMPROVEMENTS. Since Lessor is tie insuring Party, Lessor shall not
be  required  to insure Lessee Owned Alterations and Utility Installation unless
the  item  in question has become the property of Lessor under the terms of this
Lease.
     8.4     LESSEE'S  PROPERTY;  BUSINESS  INTERRUPTION  INSURANCE
     (a)Property  Damage. Lessee shall obtain and maintain insurance coverage on
all  of  the  Lessee's  personal  property,  Trade  Fixtures,  and  Lessee Owned
Alterations  and Utility Installations. Such insurance shall be full replacement
cost  coverage  with  a  deductible of not to exceed $10,000 per occurrence. The
proceeds  from any such insurance shall be used by Lessee for the replacement of
personal  property.  Trade  Fixtures  and  Lessee  Owned Alterations and Utility
installations.  Lessee  shall  provide  Lessor  with  written evidence that such
insurance  is  in  force.
     (b)  BUSINESS INTERRUPTION. Lessee shall obtain and maintain loss of income
and  extra  expense  insurance in amounts as will reimburse Lessee for direct or
indirect loss of earnings attributable to all perils commonly insured against by
prudent  lessees  in  the  business  of  Lessee or attributable to prevention of
access  to  the  Premises  as  a  result  of  such  perils.

<PAGE>

     (c)NO  REPRESENTATION  OF ADEQUATE COVERAGE. Lessor makes no representation
that  the Limits or forms of coverage of insurance specified herein are adequate
to cover Lessee's property, business operations or obligations under this Lease.
     8.5     INSURANCE POLICIES. Insurance required herein shall be by companies
duly  licensed  or admitted to transact business in the state where the Premises
are  located,  and  maintaining  during the policy term a "General Policyholders
Rating"  of  at  least  B+, V, as set forth in the most current issue of "Best's
insurance  Guide",  or  such other rating as may be required by a Lender. Lessee
shall  not  do  or  permit  to  be  done anything which invalidates the required
insurance  policies.  Lessee  shall,  prior to the Start Date, deliver to Lessor
copies  of  policies  of such insurance or certificates evidencing the existence
and  amounts  of  the  required insurance. No such policy shall be cancelable or
subject  to  modification  except  after 30 days prior written notice to Lessor.
Lessee shall, at least 30 days prior to the expiration of such policies, furnish
Lessor  with  evidence  of  renewals  or  "insurance binders" evidencing renewal
thereof,  or  Lessor  may  order  such  insurance and charge the cost thereof to
Lessee,  which  amount  shall  be  payable by Lessee to Lessor upon demand. Such
policies  shall  be  for  a  term  of  at  least  one year, or the length of the
remaining  term  of this Lease, whichever is less. If either Party shall fail to
procure and maintain the insurance required to be carried by it, the other Party
may,  but  shall  not  be  required  to,  procure  and  maintain  the  same.
     8.6  WAIVER OF SUBROGATION. Without affecting any other rights or remedies,
Lessee  and  Lessor  each  hereby release and relieve the other, and waive their
entire  right to recover damages against the other, for loss of or damage to its
property arising out of or incident to the perils required to be insured against
herein.  The effect of such releases and waivers is not limited by the amount of
insurance  carried  or  required,  or  by any deductibles applicable hereto. The
Parties  agree to have their respective property damage insurance carriers waive
any  right to subrogation that such companies may have against Lessor or Lessee,
as  the  case  may  be,  so  long  as  the insurance is not invalidated thereby.
     8.7   INDEMNITY.  Except  for  Lessor's  gross  negligence  or  willful
misconduct,  Lessee  shall  indemnify,  protect,  defend  and  hold harmless the
Premises,  Lessor and its agents, Lessor's master or ground lessor, partners and
Lenders,  from  and  against  any  and all claims, loss of rents and/or damages,
liens,  judgments,  penalties, attorneys' and consultants' fees, expenses and/or
liabilities  arising  out  of,  involving, or in connection with, the use and/or
occupancy  of  the  Premises  by  Lessee. If any action or proceeding is brought
against  Lessor  by  reason  of  any of the foregoing matters, Lessee shall upon
notice defend the same at Lessee's expense by counsel reasonably satisfactory to
Lessor  and  Lessor shall cooperate with Lessee in such defense. Lessor need not
have  first  paid  any  such  claim  in  order  to  be  defended or indemnified.
     8.8     EXEMPTION  OF  LESSOR  FROM  LIABILITY.  Except  for Lessor's gross
negligence or  willful  misconduct.  Lessor  shall  not  be liable for injury or
damage  to  the person or goods, wares, merchandise or other property of Lessee,
Lessee's  employees, contractors, invitees, customers, or any other person in or
about  the  Premises, whether such damage or injury is caused by or results from
fire,  steam,  electricity,  gas,  water or rain, or from the breakage, leakage,
obstruction  or  other  defects  of  pipes,  fire sprinklers, wires, appliances,
plumbing,  HVAC  or lighting fixtures, or from any other cause, whether the said
injury or damage results from conditions arising upon the Premises or upon other
portions  of  the Building, or from other sources or places. Lessor shall not be
liable  for  any  damages arising from any act or neglect of any other tenant of
Lessor  nor  from  the  failure of Lessor to enforce the provisions of any other
lease  in  the  Project.  Notwithstanding  Lessor's negligence or breach of this
Lease,  Lessor  shall  under  no  circumstances be liable for injury to Lessee's
business  or  for  any  loss  of  income  or  profit  therefrom.

9.     DAMAGE  OR  DESTRUCTION.
     9.1     DEFINITIONS.
          (a)  "Premises Partial Damage" shall mean damage or destruction to the
improvements  on  the  Premises, other than Lessee Owned Alterations and Utility
Installations,  which  can  reasonably  be repaired in 3 months or less from the
date  of  the  damage or destruction, and the cost thereof does not exceed a sum
equal  to  6  month's Base Rent, Lessor shall notify Lessee in writing within 30
days  from the date of the damage or destruction as to whether or not the damage
is  Partial  or  Total.
     (b)  "PREMISES  TOTAL  DESTRUCTION" shall mean damage or destruction to the
improvements  on  the  Premises, other than Lessee Owned Alterations and Utility
Installations  and  Trade  Fixtures,  which  cannot  reasonably be repaired in 3
months  or  less  from  the  date  of  the damage or destruction and/or the cost
thereof  exceeds  a sum equal to 6 month's Ease Rent. Lessor shall notify Lessee
in  writing  within  30  days  from  the date of the damage or destruction as to
whether  or  not  the  damage  is  Partial  or  Total.
     (c)  "INSURED LOSS" shall mean damage or destruction to improvements on the
Premises,  other  Than  Lessee  Owned  Alterations and Utility installations and

<PAGE>

Trade  Fixtures,  which  was  caused  by  an event required to be covered by the
insurance  described in Paragraph 8.3(a), irrespective of any deductible amounts
or  coverage  limits  involved.
     (d)  "REPLACEMENT  COST"  shall  mean  the  cost  to  repair or rebuild the
improvements  owned  by  Lessor at the time of the occurrence to their condition
existing  immediately  prior  thereto,  including demolition, debris removal and
upgrading  required  by  the  operation  of Applicable Requirements, and without
deduction  for  depreciation.
     (e)  "HAZARDOUS SUBSTANCE CONDITION" shall mean the occurrence or discovery
of  a  condition  involving  the presence of, or a contamination by, a hazardous
Substance  as  defined  in  Paragraph  6.2(a),  in,  on,  or under The Premises.
     9.2  PARTIAL DAMAGE - INSURED LOSS. If a Premises Partial Damage that is an
Insured  Loss  occurs,  then  Lessor  shall, at Lessor's expense, repair such
damage  (but not Lessee's Trade Fixtures or Lessee Owned Alterations and Utility
installations)  as  soon as reasonably possible and this Lease shall continue in
full  force  and  effect;  provided,  however,  that  Lessee  shall, at Lessor's
election,  make the repair of any damage or destruction the total cost to repair
of which is $5,000 or less, and, in such event, Lessor shall make any applicable
insurance  proceeds  available to Lessee on a reasonable basis for that purpose.
Notwithstanding the foregoing, if the required insurance was not in force or the
insurance  proceeds are not sufficient to effect such repair, the insuring Party
shall  promptly  contribute  the  shortage  in  proceeds as and when required to
complete  said repairs. In the event, however, such shortage was due to the fact
that.  by reason of the unique nature of the improvements, full replacement cost
insurance  coverage  was not commercially reasonable and available, Lessor shall
have  no  obligation  to  pay for the shortage in insurance proceeds or to fully
restore  the  unique  aspects of the Premises unless Lessee provides Lessor with
the funds to cover same, or adequate assurance thereof, within 30 days following
receipt  of  written  notice  of  such  shortage and request therefor. If Lessor
receives said funds or adequate assurance thereof within said 30 day period, the
party  responsible  for  making  the  repairs  shall  complete  them  as soon as
reasonably  possible  and  this  Lease shall remain in full force and effect. If
such  funds  or  assurance  are  not  received, Lessor may nevertheless elect by
written notice to Lessee within 10 days thereafter to: (i) make such restoration
and  repair  as  is  commercially  reasonable with Lessor paying any shortage in
proceeds,  in  which  case  this Lease shall remain in full force and effect, or
(ii)  have this Lease terminate 30 days thereafter. Lessee shall not be entitled
to reimbursement of any funds contributed by Lessee to repair any such damage or
destruction. Promises Partial Damage due to flood or earthquake shall be subject
to Paragraph 9.3, notwithstanding that there may be some insurance coverage, but
the  net  proceeds of any such insurance shall be made available for the repairs
if  made  by  either  Party.
     9.3   PARTIAL  DAMAGE  - UNINSURED LOSS.  If a Premises Partial Damage that
is  not  an  Insured Loss occurs, unless caused by a negligent or willful act of
Lessee  (in which event Lessee shall make be repairs at Lessees expense), Lessor
may  either:  (i)  repair such damage as soon as reasonably possible at Lessor's
expense,  in  which event this Lease shall continue in full force and effect, or
(ii)  terminate  this  Lease  by  giving Written notice to Lessee within 30 days
after  receipt  by  Lessor  of  knowledge of the occurrence of such damage. Such
termination shall be effective 60 days following the date of such notice, In the
event  Lessor elects to terminate this Lease, Lessee shall have the right within
30 days after receipt of the termination notice to give written notice to Lessor
of Lessees commitment to pay for the repair of such damage without reimbursement
from  Lessor.  Lessee  shall  provide  Lessor  with  said  funds or satisfactory
assurance  thereof  within  30  days after making such commitment. In such event
this  Lease shall continue in full force and effect, and Lessor shall proceed to
make  such  repairs  as soon as reasonably possible after the required funds are
available.  If  Lessee  does  not make the required commitment, this Lease shall
terminate  as  of  the  date  specified  in  the  termination  notice.
     9.4     TOTAL DESTRUCTION. Notwithstanding any other provision hereof, if a
Premises  Total Destruction occurs, this Lease shall terminate 60 days following
such  Destruction.  If  the  damage  or  destruction  was  caused  by  the gross
negligence  or  willful  misconduct  of  Lessee,  Lessor shall have the right to
recover  Lessor's  damages  from  Lessee,  except  as provided in Paragraph 8.6.
     9.5    DAMAGE NEAR END OF TERM. If at any time during the last 12 months of
this  Lease there is damage for which The cost to repair exceeds one months Base
Rent,  whether or not an insured Loss, Lessor or Lessee may terminate this Lease
effective  60  days  following the date of occurrence of such damage by giving a
written  termination  notice  to  the  other  within  30  days after the date of
occurrence of such damage. Notwithstanding the foregoing, if Lessee at that time
has an exercisable option to extend this Lease or to purchase the Premises, then
Lessee  may preserve This Lease by, (a) exercising such option and (b) providing
Lessor  with  any shortage in insurance proceeds (or adequate assurance thereof)
needed  to make the repairs on or before the earlier of (i) the date which is 30
days  after  Lessee's receipt of Lessor's written notice purporting to terminate
this Lease, or (ii) the day prior to the date upon which such option expires. If
Lessee  duly  exercises  such option during such period and provides Lessor with
funds  (or  adequate  assurance  thereof)  to  cover  any  shortage in insurance
proceeds. Lessor shall, at Lessor's commercially reasonable expense, repair such
damage  as  soon  as  reasonably  possible and this Lease shall continue in full
force and effect. If Lessee fails to exercise such option and provide such funds
or  assurance  during  such  period, then this Lease shall terminate on the date
specified  in  the termination notice and Lessee's option shall be extinguished.

                                  Page 6 of 12

  1998  -  American  Industrial  Real  Estate  Association     REVISED
FORM  MTG-2-11/98E

<PAGE>

9.6     ABATEMENT  OF  RENT;  LESSEE'S  REMEDIES.
     (a)     ABATEMENT.  In  the  event  of  Premises Partial Damage or Premises
Total  Destruction  or  a  Hazardous Substance Condition for which Lessee is not
responsible under this Lease. Ire Rent payable by Lessee for the period required
for  the  repair,  remediation  or restoration of such damage shall be abated in
proportion  to the degree to which Lessee's use of the Premises is impaired, but
not  to  exceed the proceeds received from etc Rental Value Insurance, All other
obligations  of  Lessee hereunder shall be performed by Lessee, and Lessor shall
have  no  liability  for  any  such  damage, destruction, remediation, repair or
restoration  except  as  provided  herein.
     (b)  REMEDIES.  If  Lessor  shall  be  obligated  to  repair or restore the
Premises and does not commence, in a substantial and meaningful way, such repair
or restoration within 90 days after such obligation shall accrue, Lessee may, at
any  time  prior to the commencement of such repair or restoration, give written
notice  to  Lessor  and  to  any  Lenders  of which Lessee has actual notice, of
Lessee's  election  to  terminate  this  Lease  on  a date not less than 60 days
following the giving of such notice. If Lessee gives such notice and such repair
or  restoration  is  not  commenced  within 30 days thereafter, this Lease shall
terminate  as of the date specified in said notice, If the repair or restoration
is  commenced  within  such 30 days, this Lease shall continue in full force and
effect.  "Commence"  shall  mean  either  the unconditional authorization of the
preparation  of  the  required plans, or the beginning of the actual work on the
Premises,  whichever  first  occurs  and  thereafter  prosecuting  the  work  to
completion.
     9.7     TERMINATION:  Advance  Payments.  Upon  termination  of  this Lease
pursuant  to  Paragraph  6.2)g) or Paragraph 9, an equitable adjustment shall be
made  concerning advance Base Rent and any other advance payments made by Lessee
to  Lessor,  Lessor  shall,  in  addition,  return  to Lessee so much of Lessees
Security  Deposit  as  has  not  been,  or  is not then required 10 be,  used by
Lessor.
     9.8  WAIVE  STATUTES.  Lessor and Lessee agree that the terms of this Lease
shall  govern  the  effect  of any damage to or destruction of the Premises with
respect  to the termination of this Lease and hereby waive the provisions of any
present  or  future  statute  to  tie  extent  inconsistent  herewith.

10.     REAL  PROPERTY  TAXES.
10.1     DEFINITIONS.
     (a)     "REAL  PROPERTY  TAXES."  As  used  herein, the term "REAL PROPERTY
TAXES"  shall  include  any  form  of assessment; real estate, general, special,
ordinary  or  extraordinary,  or  rental  levy  or  tax (other than inheritance.
personal  income  or estate taxes); improvement bond; and/or license fee imposed
upon or levied against any legal or equitable interest of Lessor in the Project.
Lessor's  right  to other income therefrom, and/or Lessor's business of leasing,
by  any authority having the direct or indirect power to tax and where the funds
are  generated  with  reference to the Project address and where the proceeds so
generated  are to be applied by the city, county or other local taxing authority
of  a  jurisdiction within which the Project is located. The term "Real Property
Taxes"  shall  also  include  any  tax,  fee, levy, assessment or charge, or any
increase  therein, imposed by reason of events occurring during the term of this
Lease, including but not limited to, a change in the ownership of the Project or
any  portion  thereof  or  a  change  in  the  improvements  thereon,
     (b)  "BASE  REAL  PROPERTY  TAXES."  As  used  herein, the term, "BASE REAL
PROPERTY  TAXES"  shall be the amount of Real Property Taxes, which are assessed
against  the  Premises,  Building,  Project or Common Areas in the calendar year
during  which  the Lease is executed. In calculating Real Property Taxes for any
calendar  year,  the  Real  Property Taxes for any real estate tax year shall be
included  in the calculation of Real Property Taxes for such calendar year based
upon  the  number  of days which such calendar year and tax year have in common.
     10.2  PAYMENT OF TAXES. Lessor shall pay the Real Property Taxes applicable
to  the  Project,  and  except  as  otherwise  provided  in  Paragraph 10.3, any
increases in such amounts over the Base Real Properly Taxes shall be included in
the  calculation  of  Common  Area  Operating  Expenses  in  accordance with the
provisions  of  Paragraph  4.2.

<PAGE>

10.3  ADDITIONAL  IMPROVEMENTS. Common Area Operating Expenses shall not include
Real  Property  Taxes  specified in The tax assessors records and work sheets as
being caused by additional improvements placed upon The Project by other lessees
or by Lessor for the exclusive enjoyment of such, other lessees. Notwithstanding
Paragraph  10.2  hereof, Lessee shall, however, pay to Lessor at the time Common
Area  Operating  Expenses  are  payable under Paragraph 4.2, the entirety of any
increase  in  Real  Property  Taxes if assessed solely by reason of Alterations,
Trade Fixtures or Utility installations placed upon the Premises by Lessee or at
Lessee's  request.
     10.4  JOINT  ASSESSMENT.  If  the Building is not separately assessed, Real
Property Taxes allocated to the Building shall be an equitable proportion of the
Real Property Taxes for all of the land and improvements included within the tax
parcel  assessed, such proportion to be determined by Lessor from the respective
valuations  assigned  in  the assessors work sheets or such other information as
may  be reasonably available. Lessor's reasonable determination thereof, in good
faith,  shall  be  conclusive.
     10.5  PERSONAL  PROPERTY  TAXES.  Lessee shall pay prior to delinquency all
taxes  assessed  against  and  levied  upon Lessee Owned Alterations and Utility
Installations.  Trade Fixtures, furnishings, equipment and all personal property
of  Lessee  contained  in  the  Premises.  When possible, Lessee shall cause its
Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings,
equipment  and  all other personal property to be assessed and billed separately
from  the  real  property  of  Lessor. If any of Lessee's said property shall be
assessed  with  Lessor's  real  property,  Lessee  shall  pay  Lessor  the taxes
attributable  to  Lessees  property  within  30  days after receipt of a written
statement  setting  forth  the  taxes  applicable  to  Lessee's  property.

11.     UTILITIES.  Lessee  shall  pay  for  all water, gas, heat, light, power,
telephone,  trash  disposal  and  other  utilities  and services supplied to the
Premises,  together  with  any  taxes thereon, Notwithstanding the provisions of
Paragraph  4.2,  if  at  any  time  in  Lessor's  reasonable and good faith sole
judgment,  Lessor  determines  that Lessee is using a disproportionate amount of
water,  electricity  or  other  commonly  metered  utilities,  or that Lessee is
generating such a large volume of trash as to require an increase in the size of
the  dumpster  and/or  an  increase  in  the  number of times per month that the
dumpster  is  emptied,  then  Lessor may increase Lessees Base Rent by an amount
equal  to  such  increased  costs.

12.     ASSIGNMENT  AND  SUBLETTING.
          12.1     LESSOR'S  CONSENT  REQUIRED.
               (a)  Lessee  shall not voluntarily or by operation of law assign,
transfer,  mortgage or encumber (collectively, "ASSIGN OR ASSIGNMENT") or sublet
all  or  any  part of Lessee's interest in this Lease or in the Premises without
Lessor's  prior  written  consent,
     (b)     A  change  in  the control of Lessee shall constitute an assignment
requiring  consent.  The  transfer, on a cumulative basis, of 40% or more of the
voting  control of Lessee shall constitute a change in control for this purpose.
     (c)  <Strike-out>  See  Ryder  7A.
     (d)  An assignment or subletting without consent shall, at Lessor's option,
be  a Default curable after notice per Paragraph 13.1(c), or a noncurable Breach
without  the necessity of any notice and grace period. If Lessor elects to treat
such  unapproved  assignment  or  subletting  as a noncurable Breach, Lessor may
either:  (i) terminate this Lease, or (ii) upon 30 days written notice, increase
the  monthly  Base Rent to 110% of the Base Rent then in effect. Further, in the
event  of such Breach and rental adjustment (i) the purchase price of any option
to  purchase  the Premises held by Lessee shall be subject to similar adjustment
to  110%  of  the  price  previously in effect, and (ii) all fixed and non-fixed
rental  adjustments  scheduled  during  the remainder of the Lease term shall be
increased  to  110%  of  the  scheduled  adjusted  rent.
     (e)  Lessee's  remedy  for  any breach of Paragraph 12.1 by Lessor shall be
limited  to  compensatory  damages  and/or  injunctive  relief.
     12.2  TERMS  AND  CONDITIONS  APPLICABLE  TO  ASSIGNMENT  AND  SUBLETTING.
     (a)     Regardless  of Lessor's consent, any assignment or subletting shall
not: (i) be effective without the express written assumption by such assignee or
sublessee  of the obligations of Lessee under this Lease, (ii) release Lessee of
any  obligations  hereunder,  or (iii) alter the primary liability of Lessee for
the  payment  of  Rent  or  for  the  performance of any other obligations to be
performed  by  Lessee.
     (b)  Lessor may accept Rent or performance of Lessee's obligations from any
person  other  than  Lessee  pending  approval  or disapproval of an assignment.
Neither  a  delay  in  the  approval  or  disapproval of such assignment nor the
acceptance  of  Rent  or  performance  shall  constitute a waiver or estoppel of
Lessor's  right  to  exercise  its  remedies  for  Lessee's  Default  or Breach.
     (c) Lessor's consent to any assignment or subletting shall not constitute a
consent  to  any  subsequent  assignment  or  subletting.

<PAGE>

     (d)     In the event of any Default or Breach by Lessee, Lessor may proceed
directly  against  Lessee,  any  Guarantors  or  anyone else responsible for the
performance  of Lessee's obligations under this Lease, including any assignee or
sublessee,  without  first exhausting Lessor's remedies against any other person
or  entity  responsible  therefore  to  Lessor,  or any security held by Lessor.
     (e)  Each  request  for  consent to an assignment or subletting shall be in
writing, accompanied by information relevant lo Lessor's determination as to the
financial  and  operational  responsibility  and appropriateness of the proposed
assignee  or  sublessee,  including  but  not limited to the intended use and/or
required  modification of the Premises, if any, together with a fee of 51.000 or
10%  of  the current monthly Base Rent applicable to the portion of the Premises
which  is  the  subject  of  the  proposed  assignment or sublease, whichever is
greater,  as consideration for Lessor's considering and processing said request.
Lessee agrees to provide Lessor with such other or additional information and/or
documentation  as  may  be  reasonably  requested.
     (f)  Any  assignee  of,  or sublessee under, this Lease shall, by reason of
accepting  such  assignment  or  entering  into such sublease, be deemed to have
assumed  and  agreed  to conform and comply with each, and every term, covenant,
condition and obligation herein to be observed or performed by Lessee during the
term of said assignment or sublease, other than such obligations as are contrary
to  or inconsistent with provisions of an assignment or sublease to which Lessor
has  specifically  consented  to  in writing.

                                  Page 7 of 12

  1998  -  American  Industrial  Real  Estate  Association     REVISED
FORM  MTG-2-11/98E

<PAGE>

12.3     ADDITIONAL TERMS AND CONDITIONS APPLICABLE TO SUBLETTING. The following
terms  and conditions shall apply to any subletting by Lessee of all or any part
of  the  Premises and shall be deemed included in all subleases under this Lease
whether  or  not  expressly  incorporated  therein:
     (a)     Lessee  hereby  assigns  and  transfers  to  Lessor  all of Lessees
interest  in  all Rent payable on any sublease, and Lessor may collect such Rent
and  apply same toward Lessee's obligations under this Lease; provided, however,
that  until  a  Breach  shall  occur in the performance of Lessee's obligations,
Lessee  may  collect  said Rent, Lessor shall not, by reason of the foregoing or
any  assignment  of  such  sublease, nor by reason of the collection of Rent, be
deemed  liable  to the sublessee for any failure of Lessee to perform and comply
with  any  of  Lessee's obligations to such sublessee, Lessee hereby irrevocably
authorizes and directs any such sublessee, upon receipt of a written notice from
Lessor  stating  that a Breach exists in the performance of Lessee's obligations
under  this  Lease,  to  pay  to Lessor all Rent due and to become due under the
sublease,  Sublessee  shall  rely upon any such notice from Lessor and shall pay
all  Rents  to  Lessor  without any obligation or right to inquire as to whether
such  Breach  exists,  notwithstanding  any  claim  from Lessee to the contrary.
     (b)     In  the  event  of  a  Breach by Lessee, Lessor may, at its option,
require sublessee to attorn to Lessor, in which event Lesson shall undertake the
obligations  of  the sublessor under such sublease from the time of the exercise
of  said  option  to  the expiration of such sublease: provided, however, Lessor
shall  not  be  liable  for  any  prepaid rents or security deposit paid by such
sublessee  to  such  sublessor  or  for  any  prior Defaults or Breaches of such
sublessor.
     (c)  Any  matter  requiring  the  consent of the sublessor under a sublease
shall  also  require  the  consent  of  Lessor.
     (d)  No  sublessee  shall  further  assign or sublet all or any part of the
Premises  without  Lessor's  prior  written  consent.
     (e)  Lessor  shall  deliver  a  copy  of any notice of Default or Breach by
Lessee  to the sublessee, who shall have the right to cure the Default of Lessee
within  the  grace period, if any, specified in such notice, the sublessee shall
have  a  right  of  reimbursement and offset from and against Lessee or any such
Defaults  cured  by  the  sublessee.

13.     DEFAULT;  BREACH;  REMEDIES.
     13.1     DEFAULT; BREACH. A "Default" is defined as a failure by the Lessee
to  comply  with or perform any of the terms, covenants, conditions or Rules and
Regulations  under this Lease. A "Breach" is defined as the occurrence of one or
more  of  the  following Defaults and the failure of Lessee to cure such Default
within  any  applicable  grace  period:
     (a)     The  abandonment  of  the Premises: or the vacating of the Premises
without  providing  a  commercially  reasonable  level of security, or where the
coverage of the properly insurance described in Paragraph t3 is jeopardized as a
result thereof, or without providing reasonable assurances to minimize potential
vandalism.

<PAGE>

     (b)  The  failure  of  Lessee  to  make any payment of Rent or any Security
Deposit required to be made by Lessee hereunder, whether to Lessor or to a third
party,  when due, to provide reasonable evidence of insurance or surety bond. or
to  fulfill any obligation under this Lease which endangers or threatens life or
property, where such failure continues for a period of 3 business days following
written  notice  to  Lessee.
     (c)  The  failure  by  Lessee to provide (i) reasonable written evidence of
compliance  with  Applicable Requirements. (ii) the service contracts, (iii) the
rescission  of  an  unauthorized  assignment  or  subletting.  (iv)  an Estoppel
Certificate,  (v)  a  requested  subordination,  (vi)  evidence  concerning  any
guaranty  and/or  Guarantor.  (vii)  any  document  requested under Paragraph 41
(easements)  or  (viii)  any other documentation or information which Lessor may
reasonably  require  of  Lessee  under  the  terms of this Lease, where any such
failure  continues  for  a period of 10 days following written notice to Lessee.
   (d)  A  Default  by  Lessee  as  to  the  terms,  covenants,  conditions or
provisions of this Lease, or the rules adopted under Paragraph 2.9 hereof, other
than  those  described  in  subparagraphs 13.1(a), (b) or (c), above, where such
Default  continues  for  a  period  of  30  days alter written notice; provided,
however,  that  it the nature of Lessee's Default is such that more than 30 days
are reasonably required for its cure, then it shall not be deemed to be a Breach
if  Lessee  commences  such  cure  within  said  3D  day  period  and thereafter
diligently  prosecutes  such  cure  to  completion.
     (e)     The occurrence of any other of the following events: (i) the making
of  any  general  arrangement  or  assignment for the benefit of creditors, (ii)
becoming a "DEBTOR" as defined in 11 U.S.C. 101 or any successor statute thereto
(unless,  in  the case of a petition filed against Lessee, the same is dismissed
within  60  days);  (iii)  the  appointment  of  a  trustee  or receiver to take
possession  of substantially all of Lessees assets located at the Premises or of
Lessee's  interest  in  this  Lease,  where possession is not restored to Lessee
within  30  days: or (iv) the attachment, execution or other judicial seizure of
substantially  all  of  Lessee's  assets  located at the Premises or of Lessee's
interest  in  this  Lease,  where such seizure is not discharged within 30 days;
provided,  however,  in the event that any provision of this subparagraph (C) is
contrary  to  any applicable law, such provision shall be of no force or effect.
and  not  affect  the  validity  of  the  remaining  provisions.
     (f)  The  discovery  that  any  financial  statement  of  Lessee  or of any
Guarantor  given  to  Lessor  was  materially  false.
     (g)  If  the  performance  of  Lessee's  obligations  under  this  Lease is
guaranteed:  (i) the death of a Guarantor; (ii) The termination of a Guarantor's
liability  with respect to this Lease other than in accordance with the terms of
such  guaranty;  (iii)  a  Guarantor's  becoming  insolvent  or the subject of a
bankruptcy  filing.  (iv)  a Guarantor's refusal to honor the guaranty, or (v) a
Guarantor's  breach  of  its  guaranty  obligation on an anticipatory basis, and
Lessee's  failure  within 60 days following written notice of any such event, to
provide  written alternative assurance or security, which, when coupled with the
then  existing  resources  of  Lessee,  equals or exceeds the combined financial
resources  of Lessee and the Guarantors that existed at the time of execution of
this  Lease.
     13.2     REMEDIES. If Lessee fails to perform any of its affirmative duties
or obligations, within 30 days after written notice (or in case of an emergency,
without  notice),  Lessor may, at its option, perform such duty or obligation on
Lessees  behalf,  including  but  not  limited  to  the  obtaining of reasonably
required  bonds,  insurance  policies,  or  governmental  licenses,  permits  or
approvals. The costs and expenses of any such performance by Lessor shall be due
and  payable  by Lessee upon receipt of invoice therefore, if any check given to
Lessor  by  Lessee  shall  not  be  honored  by the bank upon which if is drawn,
Lessor,  at  its option, may require all future payments to be made by Lessee to
be  by  cashier's check.  In the event of a Breach,  Lessor may, with or without
further  notice  or  demand,  and without limiting Lessor in the exercise of any
right  or  remedy  which  Lessor  may  have  by  reason  of  such  Breach:
     (a)    Terminate Lessee's right to possession of the Premises by any lawful
means,  in  which  case  this Lease shall terminate and Lessee shall immediately
surrender  possession  to  Lessor.  in  such  event  Lessor shall be entitled to
recover  from  Lessee:  (i) the unpaid Rent which had been earned at the time of
termination;  (ii)  the  worth  at  the time of award of the amount by which the
unpaid  rent  which  would  have been earned after termination until the time of
award  exceeds  The  amount of such rental loss tat The Lessee proves could have
been  reasonably  avoided; (iii) the worth at the time of award of the amount by
which  the  unpaid  rent  for  the  balance  of the term after the time of award
exceeds  the  amount  of  such  rental  loss  that  the  Lessee  proves could be
reasonably avoided; and (iv) any other amount necessary to compensate Lessor for
all  the  detriment  proximately  caused  by the Lessee's failure to perform its
obligations  under this Lease or which in the ordinary course of things would be
likely  to result therefrom, including but not limited to the cost of recovering
possession of the Premises, expenses of reletting including necessary renovation

<PAGE>

and  alteration of the Premises, reasonable attorneys' fees, and that portion of
any  leasing  commission paid by Lessor in connection with this Lease applicable
to  the  unexpired  term  of  this  Lease, the worth at the time of award of the
amount  referred  to  in  provision  (iii) of the immediately preceding sentence
shall be computed by discounting such amount at the discount rate of the Federal
Reserve  Sank  of the District within which the Premises are located at the time
of  award  plus  one  percent.  Efforts  by Lessor to mitigate damages caused by
Lessees  Breach  of this Lease shall not waive Lessor's right to recover damages
under  Paragraph  12,  if  termination  of  this  Lease  is obtained through the
provisional  remedy  of unlawful defamer. Lessor shall have the right to recover
in  such  proceeding  any unpaid Rent and damages as are recoverable therein, or
Lessor  may  reserve  the right to recover all or any part thereof in a separate
suit.  If  a  notice  and  grace  period  required  under Paragraph 13,1 was not
previously  given,  a notice to pay rent or quit, or to perform or quit given to
Lessee  under  Ire  unlawful  defamer  statute  shall also constitute the notice
required  by  Paragraph 13.1, in such case, the applicable grace period required
by  Paragraph 13.1 and the unlawful detainer statute shall run concurrently, and
the  failure  of  Lessee  to  cure he Default within the greater of the two such
grace  periods  shall  constitute both an unlawful detainer and a Breach of this
Lease entitling Lessor to the remedies provided for in this Lease and/or by said
Statute.
     (b)     Continue the Lease and Lessee's right to possession and recover the
Rent as it becomes due, in which event Lessee may sublet or assign, subject only
to  reasonable  limitations.  Acts  of  maintenance, efforts to relet and/or the
appointment  of  a  receiver  to  protect  the  Lessor's  interests,  shall  not
constitute  a  termination  of  the  Lessee's  right  to  possession.
     (c)  Pursue  any  other remedy now or hereafter available under the laws or
judicial  decisions of the state wherein be Premises are located, The expiration
or  termination  of  this  Lease  and/or  the  termination  of Lessee's right to
possession shall not relieve Lessee or Lessor from liability under any indemnity
provisions  of  this  Lease  as to matters occurring or accruing during the term
hereof  or  by  reason  of  Lessee's  occupancy  of  the  Premises.
     13.3     INDUCEMENT  RECAPTURE.  Any  agreement  for free or abated rent or
other charges,  or  for  the giving or paying by Lessor to or for Lessee of any
cash or other bonus, inducement or consideration for Lessee's entering into this
Lease,  all  of  which  concessions  are  hereinafter referred to as "INDUCEMENT
PROVISIONS",  shall  be  deemed  conditioned  upon  Lessee's  full  and faithful
performance  of  all  of the terms, covenants and conditions of this Lease. Upon
Breach  of  this  Lease  by  Lessee,  any  such  Inducement  Provision  shall
automatically  be  deemed  deleted  from  this  Lease and of no further force or
effect  and  any  rent,  other  charge,  bonus,  inducement  or  consideration
theretofore  abated,  given or paid by Lessor under such an inducement Provision
shall  be  immediately  due and payable by Lessee to Lessor. notwithstanding any
subsequent  cure  of  said Breach by Lessee, The acceptance by Lessor of rent or
the cure of the Bread, which initiated the operation of this paragraph shall not
be  deemed  a  waiver  by  Lessor  of  the  provisions  of this paragraph unless
specifically  so  stated  in  writing  by Lessor al the time of such acceptance.

                                  Page 8 of 12

  1998  -  American  Industrial  Real  Estate  Association     REVISED
FORM  MTG-2-11/98E

<PAGE>

     13.4     LATE  CHARGES.  Lessee  hereby  acknowledges  that late payment by
Lessee  of Rent will cause Lessor to incur costs not contemplated by this Lease,
the  exact  amount of which will be extremely difficult to ascertain. Such costs
include,  but  are  not  limited to, processing and accounting charges, and late
charges which may be imposed upon Lessor by any Lender, Accordingly, if any Rent
shall  not  be received by Lessor within 15 days after such amount shall be due,
then, without any requirement for notice to Lessee, Lessee shall pay to Lessor a
one-time late charge equal to 10% of each such overdue amount or $100, whichever
is greater. The parties hereby agree that such late charge represents a fair and
reasonable  estimate  of  the  costs  Lessor  will  incur by reason of such late
payment. Acceptance of such late charge by Lessor shall in no event constitute a
waiver  of  Lessees  Default  or Breach with respect to such overdue amount, nor
prevent  the exercise of any of the other rights and remedies granted hereunder.
In  the event that a late charge is payable hereunder, whether or not collected,
for  3 consecutive installments of Base Rent, then notwithstanding any provision
of  this  Lease  to the contrary Base Rent shall, at Lessor's option, become due
and  payable  quarterly  in  advance.
     13.5  INTEREST.  Any monetary payment due Lessor hereunder, other than late
charges, not received by Lessor, when due as to scheduled payments (such as Base
Rent  or within 30 days following the date on which if was due for non-scheduled
payment, shall bear interest from the date when due as to scheduled payments. on
the  31st  day  after  it  was  due  as  to non-scheduled payments. The interest
("INTEREST")  charged  shall  be  equal  to  the prime rate repented in the Wail
Street  Journal  as  published  closest  prior to the date when due plus 4%, but
shall  not  exceed  the  maximum  rate  allowed  by  law. Interest is payable in
addition  to  the  potential  late  charge  provided  for  in  Paragraph  13.4.

<PAGE>

     13.6  BREACH  BY  LESSOR.
          (a)    NOTICE  OF BREACH. Lessor shall not be deemed in breach of this
Lease  unless  Lessor  fails  within  a reasonable time to perform an obligation
required to be performed by Lessor. For purposes of this Paragraph, a reasonable
time  shall  in  no  event be less than 30 days after receipt by Lessor, and any
Lender  whose  name  and address shall have been furnished Lessee In writing for
such purpose, of written notice specifying wherein such obligation of Lessor has
not been performed; provided, however, that it the nature of Lessor's obligation
is such that more than 30 days are reasonably required for its performance, then
Lessor  shall  not  be  in breach if performance is commenced within such 30 day
period  and  thereafter  diligently  pursued  to  completion.
     (b)     Performance  by  Lessee  on  Behalf  of  Lessor.  In the event that
neither Lessor nor Lender cures said breach within 30 days after receipt of said
notice,  or  if  having  commenced said cure they do not diligently pursue if to
completion,  than  Lessee  may elect to cure said breach at Lessee's expense and
offset  from Rent an amount equal to the greater of one month's Base Rent or the
Security  Deposit, and to pay an excess of such expense under protest, reserving
Lessees  right  to  reimbursement from Lesser. Lessee shall document the cost of
said  cure  and  supply  said  documentation  to  Lessor.

14.     CONDEMNATION. If the Premises or any portion thereof are taken under the
power  of  eminent domain or sold under the threat of the exercise of said power
(collectively  "CONDEMNATION"),  this Lease shall terminate as to the part taken
as  of  the  date  the condemning authority takes title or possession, whichever
first  occurs.  If more than 10% of the floor area of the Unit. or more than 25%
of  Lessee's  Reserved  Parking Spaces, is taken by Condemnation, Lessee may, at
Lessee's  option,  to  be exercised in writing within 10 days after Lessor shall
have  given  Lessee  written  notice  of  such taking (or in the absence of such
notice,  within  10  days  after  the  condemning  authority  shall  have  taken
possession)  terminate  this Lease as of the date the condemning authority takes
such  possession. If Lessee does not terminate this Lease in accordance with the
foregoing, this Lease shall remain in full force and effect as to the portion of
the  Premises remaining, except &at the Base Rent shall be reduced in proportion
to  the  reduction  in  utility  oh  the  Premises  causes by such Condemnation.
Condemnation and/or payments shall be the property of Lessor, whether such award
shall  be  made  as  compensation for diminution in value of line leasehold. The
value  of  the  part  taken,  or  for severance damages, provided, however, that
Lessee  shall  be entitled to any compensation for Lessee's relocation expenses,
loss  of  business  goodwill and/or Trade Fixtures, without regard to whether or
not  this  Lease is terminated pursuant to the provisions of this Paragraph. All
Alterations  and  Utility  installations  made  to  the  Premises by Lessee, for
purposes  of  Condemnation  only, shall be considered the property of the Lessee
and  Lessee  shall  be  entitled  to  any  and all compensation which is payable
therefore.  In  the  event  that  this  Lease is not terminated by reason of the
Condemnation,  Lessor  shall  repair  any  damage to the Premises caused by such
Condemnation.

15.     BROKERAGE  FEES.
     15.1  ADDITIONAL  COMMISSION.  In addition to the payments owed pursuant to
Paragraph  1.10  above,  and  unless  Lessor  and the Brokers otherwise agree in
writing,  Lessor  agrees that; (a) it Lessee exercises any Option, (b) if Lessee
acquires  from  Lessor  any  rights  to  the Premises or otter premises owned by
Lessor  and  located  within the Project, (c) if Lessee remains in possession of
the Premises, with the consent of Lessor, after the expiration of this Lease, or
(d)  if  Base  Rent  is  increased,  whether  by  agreement  or  operation of an
escalation  clause  herein,  then,  Lessor shall pay Brokers a fee in accordance
with  the schedule of the Brokers in effect at the time of the execution of this
Lease.
     15.2  ASSUMPTION  OF  OBLIGATIONS.  Any  buyer  or  transferee  of Lessor's
interest  in  this  Lease  shall  be  deemed to have assumed Lessor's obligation
hereunder,  Brokers  shall  be  third  party  beneficiaries of the previsions of
Paragraphs  1,10,  15,  22 and 31. If Lessor fails to pay to Brokers any amounts
due  as  and  for  brokerage  fees  pertaining to this Lease when due, then such
amounts  shall  accrue Interest. In addition, if Lessor fails to pay any amounts
to  Lessee's  Broker when due, Lessee's Broker may send written notice to Lessor
and  Lessee  of  such  failure and if Lessor fails to pay such amounts within 10
days  after  said  notice, Lessee shall pay said monies to its Broker and offset
such  amounts against Rent. In addition, Lessee's Broker shall be deemed to be a
third  party  beneficiary  of  any  commission  agreement entered into by and/or
between  Lessor  and  Lessor's  Broker for the limited purpose of collecting any
brokerage  fee  owed.
     15.3     REPRESENTATIONS  AND  INDEMNITIES  OF BROKER RELATIONSHIPS. Lessee
and  Lessor  each represent and warrant to the other that it has had no dealings
with  any  person,  firm,  broker  or finder (otter than the Brokers, if any) in
connection  with  this  Lease,  and that no one other than said named Brokers is
entitled  to  any  commission  or finders fee in connection herewith. Lessee and
Lessor  do  each  hereby  agree to indemnify, protect, defend and hold the other
harmless  from  and  against  liability for compensation or charges which may be
claimed  by  any such unnamed broker, finder or other similar party by reason of
any  dealings  or  actions  of  the  indemnifying  Party,  including  any costs,
expenses,  attorneys'  fees  reasonably  incurred  with  respect  thereto.

<PAGE>

16.     ESTOPPEL  CERTIFICATES.
     (a)  Each  Party as ("RESPONDING PARTY") shall within 10 days after written
notice  from  the  other Party (the "REQUESTING PARTY") execute, acknowledge and
deliver  to  the  Requesting Party a statement in writing in form similar to the
then  most  current  "ESTOPPEL  CERTIFICATE"  form  published  by  the  American
industrial  Real  Estate  Association,  plus  such  additional  information,
confirmation  and/or statements as may be reasonably requested by the Requesting
Party.
     (b)     If  the  Responding  Party  shall  fail  to  execute or deliver the
Estoppel Certificate within such 10 day period, the Requesting Party may execute
an  Estoppel Certificate stating that: (i) the Lease is in full force and effect
without  modification except as may be represented by the Requesting Party, (ii)
there  are no uncured defaults in, the Requesting Party's performance, and (iii)
if  Lessor is the Requesting Party, not more than one month's rent has been paid
in advance. Prospective purchasers and encumbrances may rely upon the Requesting
Party's  Estoppel  Certificate,  and  the Responding Party shall be stopped from
denying  the  truth  of  the  facts  contained  in  said  Certificate.
     (c)  If  Lessor  desires to finance, refinance, or set the Premises, or any
part thereof, Lessee and all Guarantors shall deliver to any potential lender or
purchaser  designated  by  Lessor such financial statements as may be reasonably
required  by  such  lender  or  purchaser,  including but not limited to Lessees
financial  statements for The past years. All such financial statements shall be
received  by Lessor and such lender or purchaser in confidence and shall be used
only  for  the  purposes  herein  set  forth.

17.     DEFINITION  OF  LESSOR.  The term "LESSOR" as used herein shall mean the
owner  or owners at the time in question of the fee title to The Premises or, if
this is a sublease, of the Lessee's interest in the prior lease, in the event of
a  transfer  of Lessor's title or interest in the Premises or this Lease. Lessor
shall  deliver  to  the transferee or assignee (in cash or by credit) any unused
Security  Deposit  held  by Lessor, Except as provided in Paragraph 5, upon such
transfer  or  assignment and delivery of the Security Deposit, as aforesaid, the
p4or Lessor shall be relieved of all liability within respect to the obligations
and/or  covenants  under  this  Lease  thereafter to be performed by the Lessor.
Subject  to  the foregoing, the obligations and/or covenants in this Lease to be
performed  by  The  Lessor  shall be binding only upon the Lessor as hereinabove
defined,  Notwithstanding  the above, and subject to the provisions of Paragraph
20  below,  the  original Lessor under this Lease, and all subsequent holders of
the  Lessor's  interest  in  this Lease shall remain liable and responsible with
regard to the potential duties and liabilities of Lessor pertaining to Hazardous
Substances  as  outlined  in  Paragraph  6.2  above.

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

19.      DAYS. Unless otherwise specifically indicated to the contrary, the word
"days"  as  used  in  this  Lease  shall  mean  and  refer  to  calendar  days.

20.      LIMITATION  ON  LIABILITY.  Subject  to  the provisions of Paragraph 17
above,  the obligations of Lessor under this Lease shall not constitute personal
obligations  of  Lessor,  the  individual  partners  of  Lessor  or its or their
individual  partners, directors, officers or shareholders, and Lessee shall look
to  the  Premises, and to no other assets of Lessor, for the satisfaction of any
liability  of  Lessor  with  respect  to this Lease, and shall not seek recourse
against  the individual partners of Lessor, or its or their individual partners,
directors,  officers  or  shareholders, or any of their personal assets for such
satisfaction.

21.          TIME  OF  ESSENCE.  Time  is  of  the  essence  with respect to the
performance  of all obligations to be performed or observed by the Parties under
this  Lease.

22.     NO PRIOR OR OTHER AGREEMENTS; BROKER DISCLAIMER. This Lease contains all
agreements  between  the Panties with respect to any matter mentioned herein and
no other prior or contemporaneous agreement or understanding shall be effective.
Lessor  and Lessee each, represents and warrants to the Brokers that it has made
and  is  relying  solely  upon, its own investigation as to the nature, quality,
character  and  financial responsibility of the other Party to this Lease and as
to  the  use,  nature,  quality  and  character of the Premises. Brokers have no
responsibility  with  respect  thereto  or with respect to any default or breach
hereof  by  either  Party.  The  liability  (including court costs and attorneys
fees),  of  any  Broker  with  respect  to  negotiation,  execution, delivery or
performance  by  either  Lessor  or  Lessee under this Lease or any amendment or
modification hereto shall be limited to an amount up to the fee received by such
Broker pursuant to this Lease; provided, however that he foregoing limitation on
each  Brokers  liability  shall  not  be  applicable  to any gross negligence or
willful  misconduct  of  such  Broker.

                                  Page 9 of 12

  1998  -  American  Industrial  Real  Estate  Association     REVISED
FORM  MTG-2-11/98E
<PAGE>

23.     NOTICES.
     23.1     NOTICE  REQUIREMENTS.  All  notices  required or permitted by this
Lease  or  applicable law shall be in writing and may be delivered in person (by
hand  or  by courier) or may be sent by regular, certified or registered mail or
U.S.  Postal  Service  Express  Mail,  with  postage  prepaid  or  by  facsimile
transmission,  and  shall  be  deemed  sufficiently  given if served in a manner
specified  in  this  Paragraph  23.  The  addresses  noted adjacent to a Party's
signature on this Lease shall be that Party's address for delivery or mailing of
notices.  Either  Party  may  by written notice to the other specify a different
address  for  notice. Except that upon Lessees taking possession of the Premises
the Premises shall constitute Lessee's address for notice. A copy of all notices
to  Lessor  shall  be  concurrently transmitted to such party or parties at such
addresses  as  Lessor  may  from  time  to  time hereafter designate in writing.
     23.2  DATE  OF  NOTICE.  Any  notice  sent by registered or certified mail,
return receipt requested, shall be deemed given on the date of delivery show, on
the receipt card, or if no delivery date is shown, the postmark thereon. If sent
by  regular  mail  the  notice  shall be deemed given 45 hours after the same is
addressed as 'acquired herein and mailed with postage prepaid. Notices delivered
by  United  States  Express  Mail  or  overnight courier that guarantee next day
delivery shall be deemed given 24 hours after delivery of the same to the Postal
Service  or  courier.  Notices  transmitted by facsimile transmission or similar
means  shall  be  deemed  delivered  upon  telephone  confirmation  of  receipt
(confirmation  report  from  fax machine is sufficient), provided a copy is also
delivered  via delivery or mail. If notice is received on a Saturday, Sunday, or
legal  holiday,  it  shall  be  deemed  received  on  the  next  business  day.

24.     WAIVERS.  No  waiver  by  Lessor  of the Default or Breach of any term,
covenant  or  condition  hereof by Lessee, shall be deemed a waiver of any other
term,  covenant  on  condition hereof, or of any subsequent Default or Breach by
Lessee  of the same or of any other term, covenant or condition hereof. Lessor's
consent to or approval of, any act shall not be deemed to render unnecessary the
obtaining of Lessor's consent to or approval of any subsequent or similar act by
Lessee  or  be construed as the basis of an estoppel to enforce the provision or
provisions  of  this  Lease  requiring  such  consent. The acceptance of Rent by
Lessor  shall not be a waiver of any Default or Breach by Lessee. Any payment by
Lessee  may  be  accepted  by Lessor on account of monies or damages due Lessor,
notwithstanding  any  qualifying  statements  or  conditions  made  by Lessee in
connection  therewith,  which  such statements and/or conditions: shall be of no
force or effect whatsoever unless specifically agreed to in writing by Lessor at
or  before  the  time  of  deposit  of  such  payment.

25.     DISCLOSURES  REGARDING  THE NATURE OF A REAL ESTATE AGENCY RELATIONSHIP.
     (a)     When  entering into a discussion with a real estate agent regarding
a  real  estate  transaction,  a  Lessor  or  Lessee  should  from,  the outset,
understand  what  type  of agency relationship or representation it has with the
agent  or agents in the transaction. Lessor and Lessee acknowledge being advised
by  the  Brokers  in  this  transaction,  as  follows:
     (i)     Lessor's  Agent.  A  Lessor's  agent under a listing agreement with
             ---------------
the  Lessor  acts as the agent for the Lessor only. A Lessor's agent or subagent
has  the  following affirmative obligations. To the Lessor: A fiduciary duty of
                                             --------------
utmost care, integrity. honesty, and loyalty in dealings with the Lessor. To the
                                                                          ------
Lessee  and  the  Lessor:  a. diligent exercise of reasonable skills and care in
------------------------
performance of the agent's duties, b. A duty of honest and fair dealing and good
---
faith.  c.  A duty to disclose all facts known to the agent materially affecting
the  value  or  desirably  of  the property that are not known to, or within the
diligent attention and observation of, the Parties, An agent is not obligated to
reveal  to  either  Party  any  confidential information obtained from the other
Party  which  does  not  involve  the  affirmative  duties  set  forth  above.
      (ii)Lessee's Agent. An agent can agree to act as agent for the Lessee
          ---------------
only.  In  these  situations,  the  agent  is  not the Lessor's agent even if by
agreement  the  agent  may receive compensation for services rendered, either in
full  or  in  part  from  the  lessor. An agent acting only for a Lessee has the
following  affirmative  obligations.  To the Lessee: A fiduciary duty of utmost

<PAGE>

care, integrity, honesty, and loyalty in dealings with the Lessee. To the Lessee
                                                                   -------------
and the Lessor: a. diligent exercise of reasonable skills and care in
    ---------
performance  ofthe agent's duties, b. A duty of honest and fair dealing and good
faith,  c.  A duty to disclose all facts known to the agent materially affecting
the  value  or  desirability of the property that are not known to or within the
diligent  attention and observation of the Parties. An agent is not obligated to
reveal  to  either  Party  any  confidential information obtained from the other
Party  which  does  not  involve  the  affirmative  duties  set  forth  above.
     (iii)  Agent  Representing  Both  Lessor  and  Lessee.  A real estate agent
            -----------------------------------------------
either acting directly or through one or more associate licenses, can legally be
the  agent of both the Lessor and the Lessee in a transaction, but only with the
knowledge  and  consent  of  both  the  Lessor  and the Lessee, in a dual agency
situation,  the  agent  has  the  following  affirmative obligations to both the
Lessor  and  tine Lessee: a. A fiduciary duty of utmost care, integrity, honesty
and loyalty in the dealings with either Lessor or the Lessee, b. Other duties to
the  Lessor  and  The  Lessee  as  stated above in subparagraphs (i) or (ii). In
representing  both  Lessor  and  Lessee,  the  agent may not without the express
permission  Of the respective Party, disclose in the other Party that the Lessor
will  accept  rent  in an amount less than that indicated in the listing or that
the  Lessee  is willing to pay a higher rent than that offered. The above duties
of the agent in a real estate transaction do not relieve a Lessor or Lessee from
the  responsibility  to  protect  their  own interests. Lessor and Lessee should
carefully  read  all  agreements  to  assure  that they adequately express their
understanding  of  the transaction. A real estate agent is a person qualified to
advise about real estate. If legal or tax advice is desired, consult a competent
professional.
     (b)     Brokers  have  no  responsibility  with  respect  to any default or
breach  hereof  by  either  Party.  The  liability  (including  court  costs and
attorneys'  fees),  of  any  Broker with respect to any breach of duty, error or
omission  relating  to  this  Lease  shall  not exceed the fee received by such,
Broker  pursuant to this Lease; provided, however, that the foregoing limitation
on  each,  Broker's liability shall not be applicable to any gross negligence or
willful  misconduct  of  such  Broker.
     (c)  Buyer  and  Seller  agree to identify to Brokers as "Confidential" any
communication  or  information given Brokers that is considered by such Party to
be  confidential.

26.     NO  RIGHT  TO  HOLDOVER. Lessee has no right to retain possession of the
Premises or any part thereof beyond the expiration or termination of this Lease.
In  the  event  that  Lessee holds over, then he Base Rent shall be increased to
150%  of  the  Base  Rent  applicable  immediately  preceding  the expiration or
termination. Nothing contained herein shall be construed as consent by Lessor to
any  holding  over  by  Lessee.

27.     CUMULATIVE  REMEDIES.  No  remedy  or election hereunder shall be deemed
exclusive but shall, wherever possible, be cumulative with all other remedies at
law  or  in  equity.

28.     COVENANTS  AND  CONDITIONS; CONSTRUCTION OF AGREEMENT. All provisions of
this  Lease  to  be  observed  or  performed  by  Lessee  are both covenants and
conditions.  In  construing  this  Lease,  all  headings  and titles are for the
convenience  of  the  Parties  only  and  shall not be considered a part of this
Lease.  Whenever  required by the context, the singular shall include the plural
and  vice  versa, this Lease shall not be construed as if prepared by one of the
Parties, but rather according to its fair meaning as a whole, as if both Parties
had  prepared  it.

29.     BINDING  EFFECT;  CHOICE  OF  LAW.  This Lease shall be binding upon the
parties,  their personal representatives, successors and assigns and be governed
by  the  laws  of  the  State  in which the Premises are located. Any litigation
between  the  Parties  hereto  concerning  this  Lease shall be initiated in the
county  to  which  the  Premises  are  located.

30.     SUBORDINATION;  ATTORNMENT;  NON-DISTURBANCE.
          30.1     SUBORDINATION. This Lease and any Option granted hereby shall
be  subject  and  subordinate  to  any ground lease, mortgage, deed of trust, or
other  hypothecation or security device (collectively "SECURITY DEVICE"), now or
hereafter placed upon the Premises, to any and all advances made on the security
thereof,  and  to  all  renewals,  modifications, and extensions thereof. Lessee
agrees  that  the  holders  of  any such Security Devices (in his Lease together
referred to as "LENDER") shall have no liability or obligation to perform any of
the  obligations  of  Lessor under this Lease. Any Lender may elect to have this
Lease  and/or  any  option  granted  hereby superior to the lien of its Security
Device by giving written notice thereof to Lessee, whereupon this Lease and such
Options  shall  be  deemed  prior  to  such Security Device, notwithstanding the
relative  dates  of  the  documentation  or  recordation  thereof.
     30.2  ATTORMENT.  Subject  to  the  non-disturbance provisions of Paragraph
30.3,  Lessee  agrees  to  attorn  to  a  Lender or any other party who acquires
ownership  of  the Premises by reason of a foreclosure of a Security Device, and

<PAGE>

that  in  the event of such foreclosure, such new owner shall not: (a) be liable
for  any  actor omission of any prior lessor or with respect to events occurring
prior  to  acquisition  of  ownership; (b) be subject to any offsets or defenses
which  Lessee might have against any prior lessor, (c) be bound by prepayment of
more  than  one  month's  rent,  or  (d) be liable or the return of any security
deposit  paid  to  any  prior  lessor.
     30.3     NON-DISTURBANCE.  With respect to Security Devices entered into by
Lessor  after  the  execution of this Lease. Lessees subordination of this Lease
shall  be  subject  to  receiving  a  commercially  reasonable  non-disturbance
agreement  (a "NON-DISTURBANCE AGREEMENT") from the Lender which Non-Disturbance
Agreement  provides  that  Lessee's  possession of The Premises, and this Lease,
including  any  options to extend the term hereof, will not be disturbed so long
as  Lessee  is  not  in  Breach  hereof  and  attorns to the record owner of the
Premises,  Further,  within  60  days  after the execution of this Lease. Lessor
shall  use  its  commercially  reasonable  efforts  to  obtain a Non-Disturbance
Agreement  from  the holder of any pre-existing Security Device which is secured
by  the  Premises.  In  the  event  that  Lessor  is  unable  to  provide  the
Non-Disturbance  Agreement  within  said  60  days,  then Lessee may, at Lessees
option,  directly  contact Lender and attempt to negotiate for the execution and
delivery  of  a  Non-Disturbance  Agreement.
     30.4 SELF-EXECUTING. The agreements contained in this Paragraph 30 shall be
effective  without  the  execution  of any further documents; provided, however,
that,  upon  written  request from Lessor or a Lender in connection with a sale,
financing  or  refinancing of the Premises, Lessee and Lessor shall execute such
further  writings  as  may  be  reasonably  required  to separately document any
subordination,  attornment and/or Non-Disturbance Agreement provided for herein.

                                  Page 10 of 12

  1998  -  American  Industrial  Real  Estate  Association     REVISED
FORM  MTG-2-11/98E
<PAGE>
31.      ATTORNEYS  FEES.  If any Party or Broker brings an action or proceeding
involving  the  Premises  whether  founded  in  tort,  contract or equity, or to
declare  rights  hereunder,  the  Prevailing Party (as hereafter defined) in any
such,  proceeding,  action,  or  appeal thereon, shall be entitled to reasonable
attorney's  fees.  Such  fees  may be awarded in the same suit or recovered in a
separate  suit,  whether or not such action or proceeding is pursued to decision
or  judgment.  The term, "Prevailing Party" shall include, without limitation, a
Party  or  Broker who substantially obtains or defeats the relief sought, as the
case  may be, whether by compromise, settlement, judgment, or the abandonment by
the  other  Party  or  broker of its claim or defense. The attorney's fees award
shall  not  be  computed in accordance with any court fee schedule, but shall be
such as to fully reimburse all attorneys' fees reasonably incurred. In addition,
Lessor  shall be entitled to attorneys' fees, costs and expenses incurred in the
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  ($200  is  a  reasonable minimum per
occurrence  for  such  services  and  consultation).

32.     LESSOR'S  ACCESS;  SHOWING PREMISES; REPAIRS. Lessor and Lessor's agents
shall  have  the  right  to  enter  the  Premises at any time, in the case of an
emergency, and otherwise at reasonable times for the purpose of showing the same
to  prospective  purchasers,  lenders,  or tenants, and making such alterations,
repairs, improvements or additions to the Premises as Lessor may deem necessary.
All  such  activities shall be without abatement of rent or liability to Lessee.
Lessor  may at any time place on the Premises any ordinary "FOR SALE" signs, and
Lessor may during the last 6 months of the term hereof place on the Premises any
ordinary  "FOR  LEASE"  signs.  Lessee may at any time place on the Premises any
ordinary  "FOR  SUBLEASE"  sign.

33.          AUCTIONS.  Lessee shall not conduct nor permit to be conducted, any
auction  upon  the Premises without Lessor's prior written consent. Lessor shall
not  be  obligated  to  exercise  any  standard of reasonableness in determining
whether  to  permit  an  auction.

34.     SIGNS. Except for ordinary "For Sublease" signs which may be placed only
on  the  Premises,  Lessee  shall  not  place  any sign upon the Project without
Lessor's  prior  written  consent.  All  signs  must  comply with all Applicable
Requirements.

35.     TERMINATION;  MERGER. Unless specifically stated otherwise in writing by
Lessor,  the  voluntary  or  other surrender of this Lease by Lessee. the mutual
termination or cancellation hereof, or a termination hereof by Lessor for Breach
by  Lessee,  shall  automatically terminate any sublease or lesser estate in the

<PAGE>
Premises;  provided,  however,  that Lessor may elect to continue any one or all
existing  subtenancies. Lessor's failure within 10 days following any such event
to  elect  to  the  contrary  by written notice to the holder of any such lesser
interest,  shall  constitute Lessor's election to have such event constitute the
termination  of  such  interest.

36.     CONSENTS.  Except  as  otherwise provided herein. wherever in this Lease
the  consent  of  a  Party is required to an act by or for the other Party, such
consent  shall  not  be  unreasonably  withheld  or  delayed.  Lessor's  actual
reasonable  costs  and  expenses  (including  but  not  limited to architechts',
attorneys', engineers and other consultants' fees) incurred in the consideration
of,  or  response  to, a request by Lessee for any Lessor consent, including but
not limited to consents to an assignment, a subletting or the presence or use of
a  Hazardous  Substance,  shall be paid by Lessee upon receipt of an invoice and
supporting  documentation  therefor.  Lessor's consent to any act, assignment or
subletting  shall  not constitute an acknowledgment that no Default or Breach by
Lessee  of  this  Lease exists, nor shall such consent be deemed a waiver of any
then  existing Default or Breach, except as may be otherwise specifically stated
in  writing by Lessor at the time of such consent, The failure to specify herein
any  particular  condition to Lessor's consent shall not preclude the imposition
by Lessor at the time of consent of such further or other conditions as are then
reasonable  with  reference  to the particular matter for which consent is being
given.  In  the event that either Party disagrees with any determination made by
the  other hereunder and reasonably requests the reasons for such determination,
the  determining  party  shall  furnish its reasons in writing and in reasonable
detail  within  10  business  days  following  such  request.

37.     GUARANTOR.
          37.1     EXECUTION.  The  Guarantors,  if  any,  shall  each execute a
guaranty  in  the  form  most recently published by the American Industrial Real
Estate  Association,  and each such Guarantor shall have the same obligations as
Lessee  under  this  Lease.
     37.2     DEFAULT.  It  shall  constitute  a  Default  of  the Lessee if any
Guarantor  fails  or  refuses,  upon  request  to  provide:  (a) evidence of the
execution  of  the  guaranty,  including  the  authority of the party signing on
Guarantor's  behalf  to  obligate  Guarantor,  and  in  the  case of a corporate
Guarantor,  a  certified  copy  of  a  resolution  of  its  board  of  directors
authorizing  the  making of such guaranty, (b} current financial statements, (c)
an  Estoppel Certificate, or (d) written confirmation that the guaranty is still
in  effect.

38.     QUIET  POSSESSION.  Subject  to  payment  by  Lessee  of  the  Rent  and
performance  of all of the covenants, conditions and provisions on Lessee's part
to  be  observed  and  performed  under  this  Lease,  Lessee  shall  have quiet
possession  and  quiet  enjoyment  of  the  Premises  during  the  term  hereof.

39.          OPTIONS. If Lessee is granted an option, as defined below, then the
following  provisions  shall  apply,
     39.1     DEFINITION.  "OPTION" shall mean: (a) the right to extend the term
of  or renew this Lease or to extend or renew any lease that Lessee has on other
property  of  Lessor;  (b)  the  right  of first refusal or first offer to lease
either  the  Premises  or other property of Lessor: (c) the right to purchase or
the right of first refusal to purchase the Premises or other property of Lessor.

     39.2     OPTIONS  PERSONAL  TO  ORIGINAL  LEASE. Any Option granted to
Lessee  in this Lease is personal to the original Lessee, and cannot be assigned
or  exercised  by  anyone  other  than  said  original Lessee and only while the
original  Lessee  is  in  full  possession  of the Premises and, if requested by
Lessor,  with  Lessee  certifying  that  Lessee  has  no intention of thereafter
assigning  or  subletting.
     39.3          MULTIPLE  OPTIONS.  In the event that Lessee has any multiple
Options to extend or renew this Lease, a later Option cannot be exercised unless
the  prior  Options  have  been  validly  exercised.
            39.4          EFFECT  OF  DEFAULT  ON  OPTIONS.
          (a)  Lessee  shall have no right to exercise an Option; (i) during The
     period  commencing  with the giving of any notice of Default and continuing
     until  said  Default  is  cured, (ii) during the period of time any Rent is
     unpaid  (without  regard  to whether notice thereof is given Lessee), (iii)
     during  the  time  Lessee  is in Breach of this Lease, or (iv) in the event
     that  Lessee  has been given 3 or more notices of separate Default, whether
     or  not  the  Defaults  are  cured,  during the 12 month period immediately
     preceding  the  exercise  of  the  Option.
          (b)  The  period of time within which an Option may be exercised shall
     not  be  extended or enlarged by reason of Lessees inability to exercise an
     Option  because  of  the  provisions  of  Paragraph  39.4(a).
          (c)  An  Option  shall terminate and be of no further force or effect.
     notwithstanding  Lessee's  due and timely exercise of the Option, if, after
     such  exercise  and  prior  to  the  commencement of the extended term, (i)
     Lessee  fails  to  pay Rent for a period of 30 days after such Rent becomes
     due  (without  any necessity of Lessor to give notice thereof), (ii) Lessor
     gives  to  Lessee 3 or more notices of separate Default during any 12 month
     period, whether or not the Defaults are cured, or (iii) if Lessee commits a
     Breach  of  this  Lease.

<PAGE>

40.        SECURITY  MEASURES.  Lessee hereby acknowledges that the Rent payable
to Lessor hereunder does not include the cost of guard service or other security
measures,  and  that Lessor shall have no obligation whatsoever to provide same.
Lessee  assumes  all  responsibility for the protection of the Premises, Lessee,
its  agents  and  invitees  and  their  property from the acts of third parties.

41.     RESERVATIONS.  Lessor  reserves  the  right:  (i)  to grant, without the
consent or joinder of Lessee, such easements, rights and dedications that Lessor
deems  necessary  (ii) to cause the recordation of parcel maps and restrictions,
and  (iii)  to  create  and/or  install  new  utility  raceways, so long as such
easements,  rights, dedications, maps, restrictions, and utility raceways do not
unreasonably  interfere with the use of the Premises by Lessee. Lessee agrees to
sign  any  documents  reasonably  requested by Lessor to effectuate such rights.

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

43.     AUTHORITY.  If  either  Party  hereto  is  a corporation, trust, limited
liability  company,  partnership,  or  similar entity, each individual executing
this  Lease  on  behalf of such entity represents and warrants that he or she is
duly  authorized  to  execute  and  deliver this Lease on its behalf. Each party
shall,  within  30  days  after request, deliver to the other party satisfactory
evidence  of  such  authority.

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

45.     OFFER.  Preparation  of  this  Lease  by either party or their agent and
submission  of  same to the other Party shall not be deemed an offer to lease to
the  other  Party.  This  Lease is not intended to be binding until executed and
delivered  by  all  Parties  hereto.

46.     AMENDMENTS.  This  Lease  may be modified only in writing, signed by the
Parties  in  interest  at  the  time of the modification. As long as they do not
materially  change  Lessee's  obligations  hereunder, Lessee agrees to make such
reasonable  non-monetary  modifications  to  this  Lease  as  may  be reasonably
required  by  a  Lender  in connection with the obtaining of normal financing or
refinancing  of  the  Premises.

                                  Page 11 of 12

  1998  -  American  Industrial  Real  Estate  Association     REVISED
FORM  MTG-2-11/98E

<PAGE>
47.     MULTIPLE  PARTIES.  If more than one person or entity is named herein as
either  Lessor  or  Lessee,  such  multiple Parties shall have joint and several
responsibility  to  comply  with  the  terms  of  this  Lease.

48.     WAIVER  OF  JURY TRIAL. The Parties hereby waive their respective rights
to  trial  by jury in any action or proceeding involving the Property or arising
out  of  this  Agreement.

49.     MEDIATION  AND  ARBITRATION  OF  DISPUTES.  An  Addendum  requiring  the
Mediation  and/or  the  Arbitration  of  all disputes between the Parties and/or
Brokers  arising  out  of  this  Lease ___ is ___ is not attached to this Lease.

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

ATTENTION:     NO  REPRESENTATION  OR  RECOMMENDATION  IS  MADE  BY THE AMERICAN
INDUSTRIAL REAL ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY,
LEGAL  EFFECT,  OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT
RELATES,  WE  PARTIES  ARE  URGED  TO:
1.     SEEK  ADVICE OF COUNSEL AS TO THE LEGAL & TAX CONSEQUENCES OF THIS LEASE.
2.     RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF
THE  PREMISES.  SAID  INVESTIGATION  SHOULD  INCLUDE  BUT NOT BE LIMITED TO: THE
POSSIBLE  PRESENCE  OF  HAZARDOUS  SUBSTANCES,  THE  ZONING OF THE PREMISES, THE
STRUCTURAL  INTEGRITY,  THE  CONDITION  OF  THE  ROOF  AND  OPERATING  SYSTEMS,
COMPLIANCE  WITH  THE AMERICANS WITH DISABILITIES ACT AND THE SUITABILITY OF THE
PREMISES  FOR  LESSEE'S  INTENDED  USE.

WARNING:  IF  THE PREMISES ARE LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN
PROVISIONS  OF  THE  LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE
STATE  IN  WHICH  THE  PREMISES  ARE  LOCATED.
The  parties  hereto  have  executed  this  Lease  at the place and on the dates
specified  above  their  respective  signatures.
<PAGE>

<TABLE>
<CAPTION>
<S>  <C>
Executed  At:  1601  Alton  Parkway, 92606               Executed at: 10 Mauchly Drive,  Irvine,  CA  92618
               -----------------------------                          -------------------------------------
On:     September  12,  2001                             On:     September  10,  2002
        ------------------------------------                     ------------------------------------------
By  LESSOR:                                              By  LESSEE:
Del  Mar  Avionics                                       HiEnergy Technologies, Inc.
--------------------------------------------               ------------------------------------------------
By:  /s/ Bruce Del Mar
--------------------------------------------             By:     /s/  B.  C.  Maglich
                                                                 ------------------------------------------
Name  Printed:     BRUCE  DEL  MAR                       Name  Printed:     B.  C. MAGLICH
              ------------------------------                                   ----------------------------
Title:   Pres.                                           Title:     CHAIRMAN
      --------------------------------------                     ------------------------------------------

By:   --------------------------------------             By:     ------------------------------------------
Name  Printed:    --------------------------             Name  Printed:     -------------------------------
Title:  ------------------------------------             Title:   -----------------------------------------
Address:  ----------------------------------             Address:    --------------------------------------

Telephone: (949) 250-3200                                Telephone: (949) 727-3189
           ----------------------------------                      ----------------------------------------
Facsimile:  (949)  727-3288                              Facsimile: ---------------------------------------
            ---------------------------------
Federal  ID  No.   --------------------------            Federal  ID  No.   -------------------------------

These forms are often modified to meet changing requirements of law and needs of
the  industry.  Always  write  or  call  to make sure you are utilizing the most
current form: American Industrial Real Estate Association, 700 South Flower St.,
Suite  600,  Los  Angeles,  CA  90017.  (213)  687-8777.

          Copyright 1998 By American Industrial Real Estate Association.
                              All rights reserved.
    No part of these works may be reproduced in any form without permission in
                                    writing.

</TABLE>

                                  Page 12 of 12

  1998  -  American  Industrial  Real  Estate  Association     REVISED
FORM  MTG-2-11/98E
<PAGE>

                                    ADDENDUM
                                    --------

          To Standard Industrial/Commercial Multi-Tenant Lease - Gross
               Of the American Industrial Real Estate Association
                         Executed concurrently herewith

           DEL MAR AVIONICS, Lessor, and HIENERGY TECHNOLOGIES, Lessee

                                 01 October 2002

BASE  RENT  SCHEDULE
Months  1-18      $8,000.00     (base  rent)
Months  19-36     $8,320.00     (4%  increase)

TENANT  IMPROVEMENTS

All  improvements  or  modifications  to  the  facility shall be at Lessee's own
expense,  unless  otherwise  agreed to by both parties hereto in writing. Lessor
shall  have reasonable approval rights to review, inspect and approve all tenant
improvements.  Any  such  improvements,  which  are  permanently attached to the
property,  i.e. fixtures, become part of the real property of the Lessor, unless
said  fixtures  can  be  conveniently removed without damage to or alteration of
Lessor's  premises  and facilities. All improvements constructed by Lessee shall
comply  with  local  building  codes  and  applicable  construction  and  zoning
requirements.

Lessor,  however,  agrees  to  provide the following initial Tenant Improvements
(TI's),  as  illustrated  in  the attached diagram, prior to Lessee's Occupancy:

Patch  and  repair  all  damaged  wails;
Paint  and  recarpet  office  areas;
Remove  lab  wall:
Remove  office  walls  to  create  front  lobby;
Install  bathroom  wall;
Add  two  doors  to  lab  area;
Install  new  double  door  entry  to  lobby.

SECURITY  GUARD  SERVICE

Lessee  shall  receive  the  support  of Del Mar Avionics security guard service
during  its  established  hours  of  gate guard service at no additional cost to
Lessee.  Guard  service  shall consist of directing visitors, directing delivery
vehicles  and  securing  premises  after hours. Lessor, however, will not accept
responsibility  for  any  loss  of  merchandise  or equipment from the premises.
Lessee agrees to maintain security of its subject leased property to protect its
own  assets  as well as to cooperate to maintain the privacy and assets of other
tenants of the Del Mar Technology Complex. Lessor wilt provide reasonable access
to  its  warehouse  facilities  to  include  the  loading  dock.

COMMON  AREA  EXPENSES

Generally,  tenants  in  the  124,000 sq ft bldg share common area building HVAC
costs  and electrical power in proportion to each tenant's square footage of the
building; this matter is normally invoiced monthly to each tenant in addition to
each  tenant's  monthly  rental  fee.  Lessee herein, having an independent HVAC
system,  however,  will  be exempt from building common area expenses. Lessee to
this  lease  is provided with an independent HVAC and electrical power meter for
the approximately 6,600 sq ft of a central area of the 124,000 sq ft building as

                                        1
<PAGE>

Lessee's leased premises. In view of the unique circumstances of Lessee's leased
premises  and  as  further  consideration  of  this  lease,  Lessor  will accept
responsibility  of  the  electrical power on a monthly basis not to exceed $1600
per  month; i.e. any electrical power billings in excess of $1600 per month will
be  assumed  and  paid  by  Lessee  in addition to Lessees $8000 per month lease
payment.  In  consideration of Lessor's assumption of this financial commitment,
Lessee further agrees to assume responsibility for maintenance and repair of all
electrical  devices  and  equipment in Lessee's leased premises during the lease
period.

During  each  year of this Lease, Lessor and Lessee shall maintain an accounting
of  electrical  costs  (primarily  HVAC) on a month to month basis. In so doing,
Lessee  shall  be  allowed  to  accumulate  monthly  credits  for  the amount of
electrical  power  costs  below  said  $1600  cap  to be applied against monthly
electrical  surcharges  when  electrical  costs  exceed  said  $1600  cap.
Alternatively, said monthly credits may also be applied to the monthly base rent
as well; however, in no event may any monthly credit be applied to the base rent
for  greater  than  fifty  percent  (50%)  of  said  rent  for  any  one  month.

INTERIOR  FURNISHINGS

Landlord will provide limited furnishings as follows: 8 U-shaped executive desks
with  8  executive  chairs,  5  small desks with 5 chairs, 5 additional customer
chairs,  and  1  conference  table, Lessee agrees to maintain the appearance and
operational  utility  of  Lessor's  furniture,  supplied  as  part of the lease.

HAZARDOUS  WASTE  AND  MATERIALS

Lessee  agrees  to store hazardous waste, if any, outside the leased building in
appropriate containers. Lessee shall be responsible for proper disposal and safe
guarding  of  any  and  all  hazardous wastes. Hazardous materials, on the other
hand,  such  as  nuclear  and  radioactive  materials must comply with state and
federal  EPA,  NRC,  and  AEC  requirements as well as the following provisions.

Landlord  consents  that  upon  signing  of this lease agreement, HiEnergy shall
apply  to  the  State of California for a license or licenses for the use on the
leased premises of the equipment required for the development and testing of the
detection  technologies  of  HiEnergy  including  but  not  limited  to standard
commercially  available  sealed  capsule of Americium-Berillium source. Landlord
understands  that  said  type of equipment is essential for the operation of the
company,  and  Landlord  hereby  grants  permission for the use of the equipment
provided,  however,  that:

all  required  State  &  Federal  licenses  have been granted and copies thereof
supplied  to  Landlord;

location  and shielding of the equipment will provide radiation safety under the
State  and  Federal  regulations;

radiation  monitoring,  and  calibration  of the monitoring instruments, will be
done  regularly  by  the State Licensed and experienced University of California
Radiation  Safety  Officer;

Lessee  will  not store radioactive waste in or outside the leased premises, and
shall  arrange  for  state  approved  pick  up  and  disposal  of  any discarded
radioactive  wastes  or  by-products  at  Lessee's  expense.

CREDIT/SECURITY

Lessee  shall  pay  upon execution of the lease a security deposit equivalent to
one (1) month's initial rent. This deposit shall be held until termination of
the lease  term.

TERMINATION  OF  LEASE  UPON  SALE  OF  PROPERTY

In  the  event  of  a  pending  sale  of  the  subject  property or the building
encompassing  this  lease,  Lessee  agrees  to  vacate  the property on Lessor's
request  with  150 days advance notice in writing. As consideration for Lessee's
inconvenience,  Lessor will pay Lessee fifty percent (50%) of the actual cost of

                                        2
<PAGE>

any  Lessor  authorized  and approved building improvements completed on subject
property  by  Lessee;  actual  costs  to be amortized over the term of the lease
minus  any  applied/received  rent  abatements.

INDEMNIFICATION

Notwithstanding  anything to the contrary contained herein, in the event that as
the result of a breach of contractual provisions by Lessor of the warranties and
representations contained herein, Lessee is denied the quiet enjoyment or use of
the  Premises  or  any  part thereof, then Lessor shall indemnify Lessee for all
reasonable  costs  incurred  by  Lessee as a result of such breach and shall, in
addition, provide rent abatement for such period that Lessee does not have quiet
enjoyment  of  the  Premises  or any  part  thereof,  with  such  rent abatement
calculated  at  the  daily  rental rate for the Premises. In addition, upon such
denial of the quiet enjoyment of the Premises or any part thereof, Lessor shall,
with all due speed, make such repairs and modifications to the Premises to bring
the  Premises  into  compliance  with  the  applicable  requirements.

BROKERAGE  COMMISSION

A  total  real  estate brokerage commission of six percent (6%) shall be paid as
follows:

Lessor  shall  pay a Listing Broker commission (i.e. representing Lessor/Seller)
of  three  percent  (3%)  of  the  total  lease  value  as  follows:

  2%  of  said  commission  paid  by  Lessor  to  Nathan  Howard  Group,
                                      ------
  1%  of  said  commission  paid  by  Lessor  to  English  &  Associates,
  --                                  ------

  3%  Total  Listing  Commission

Lessor  and  Lessee  shall  equally  pay  a  Procuring  Broker  commission (i.e.
representing  Lessee/Buyer)  of  three  percent (3%) of the total lease value as
follows:

  1,5%  of  said  commission  paid  by  Lessor  to  Nathan  Howard  Group,
                                        ------
  1.5%  of  said  commission  paid  by  Lessee  to  Nathan  Howard  Group,
  ----                                  ------

  3%  Total  Leasing  Commission

on  the  initial  6600  square  foot  transaction and any future expansion later
negotiated  by  the  respective  Broker(s).

LESSEE  LIABILITY

Notwithstanding  anything to the contrary set forth in this Lease, unless caused
by  Lessee or Lessee's employees, agents or contractors (collectively, 'Lessee's
Employees'),  Lessee  shall  not  have  any  responsibility  for:

existing  violations  of  Applicable  Requirements  relating  to any part of the
Premises,  the Building or the Project as of the date Lessee takes possession of
the  Premises;

any  Hazardous Substances present in, on, under or about any part of the Project
as  of  the  date  Lessee  takes possession of the Premises or that were brought
into,  onto,  about,  or  under any part of the Project by Lessor after the date
Lessee takes possession of the Premises, except for Hazardous Substances brought
onto  the  Project  by  Lessee  or  Lessee's  Employees;

without  limiting  the generality of the foregoing, the cleanup, remediation, or
removal  of  any Hazardous Substances present in, on, under or about any part of
the  Project as of the date Lessee takes possession of the Premises or that were
or  are  brought  into,  onto, about, or under any part of the Project after the
date  Lessee  takes  possession of the Premises, except for Hazardous Substances
brought  onto  the  Project  by  Lessee  or  Lessee's  Employees.

                                        3
<PAGE>
LESSOR  WARRANTIES

Lessor  represents  and  warrants  to  Lessee  that:

there  are  no  liens,  encumbrances, leases, mortgages, deeds of trust or other
matters  encumbering or affecting Lessor's right, title or interest in or to the
Premises  that  will  materially  and  adversely  affect  Lessee's quiet use and
enjoyment  of  the  Premises for which a non-disturbance agreement acceptable to
Lessee  has  not  been  obtained;

Lessees  use  of  the  Premises  as  stated in this Lease will not result in the
increase  of  any  premium  for,  or  the  cancellation of, any insurance policy
maintained  by  Lessor  pursuant  to  this  Lease:

to  Lessor's  knowledge, the Premises, all improvements thereto and all building
systems  therein  are  in  good condition and repair, and in compliance with all
Applicable Requirements, and Lessor shall, within thirty (30) days of receipt of
notice  by  Lessee, make all necessary repairs, replacements, and alterations to
make  the Premises, all improvements thereto and all building systems therein in
such  condition,  repair  and compliance, all at Lessor's sole cost and expense;

to  Lessor's  knowledge, no underground or above-ground storage tanks or surface
impoundments  are  located  on  or  under  any part of the Project or any nearby
property;

except  in  compliance  With  Applicable  Requirements,  neither  Lessor, nor to
Lessor's knowledge, any prior owner, operator, lessee or occupant of any part of
the  Project  or  any  nearby  property,  has generated, used, treated, spilled,
stored,  transferred,  disposed,  released or caused a threatened release in, at
under,  into,  from,  to or on any part of Project or any nearby property of any
Hazardous  Substances;

Lessor  has not received any notice or claim to the effect that either Lessor or
any  part  of  the  Project  or  any  nearby property is or may be liable to any
governmental authority or private party as a result of the release or threatened
release  of  any  Hazardous  Substances.

LEGAL  COMPLIANCE

Lessor  shall  comply  with  all current and future Applicable Requirements that
relate to the Premises, Building or the Project of which the Premises are a part
other  than  costs for which Lessee is already responsible. Lessee shall only be
liable for the cost of complying with laws that arise due to the specific nature
of  Lessee's  use  of  the  Premises.

TRADE  FIXTURES

Lessee  shall  have  the  right to remove any or all of Lessee's Trade Fixtures,
Lessee-Owned  Alterations,  Utility  Installations  and  other personal property
located  in  or  on  the Premises as of the Start Date of this lease, so long as
Premises  are  returned  to  and  left in original condition, e.g. holes filled,
paint  if  necessary,  etc.,  reasonable  wear  and  tear  excluded,

ASSIGNMENT  BY  LESSEE

Notwithstanding anything in this lease to the contrary, and provided that Lessee
also remains liable under this Lease, Lessee may, upon written notice to Lessor,
and  after obtaining  Lessor's consent and without constituting a default under
this  Lease,  assign this Lease or sublet all or any portion of the Premises to:

any  entity formed by Lessee, provided that Lessee owns or beneficially controls
a  majority  of  the  outstanding  ownership  interest  in  such  entity;

                                        4
<PAGE>
any  parent  or  subsidiary  entity  of  Lessee;

any  person  or entity that acquires all or substantially all of Lessee's assets
or  capital  stock, provided that the acquiring person or entity has a net worth
equal  to  or  greater  than  Lessee's  then  net  worth:

any  entity  with  which  Lessee  merges,  regardless  of  whether Lessee is the
surviving entity, provided that the surviving entity has a net worth equal to or
greater  than  Lessee's  then  net  worth.

NON  ASSIGNMENT

An  assignment  or  sublet  shall not include, and Lessor's consent shall not be
required  for:

any  initial  or  subsequent  public  offering  by  Lessee;

any  sale  or  transfer  of  stock  of  Lessee,  if  Lessee is a public company;

any  sale  or  transfer of lessee's stock to take Lessee private, if Lessee is a
public  company, provided that Lessee's net worth remains substantially the same
or  greater  after  going  private.

ATTESTATION

Parties  hereto  add  the  foregoing  amendment  to  the  underlying  Standard
Industrial/Commercial  Multi-Tenant  Lease  -  Gross  produced  by  the American
Industrial  Real  Estate Association concomitantly executed herewith. Provisions
herein  are  deemed  to be incorporated therein as though fully set out therein.
Conflicts, if any, between said underlying lease and this addendum thereto shall
be  resolved in favor of the provisions herein; i.e. provisions in this addendum
are  controlling.

WHEREFOR,  the parties hereto set their signatures below with full knowledge of,
acceptance  of,  and  attestation to the foregoing additionally agreed to terms.

Del  Mar  Avionics                         HiEnergy  Technologies
Lessor                                     Lessee

/s/  Bruce  Del  Mar      9-12-02    /s/  B.  C.  Maglich                 9/9/02

-----------------------   --------- ------------------------------------  ------
Bruce Del Mar, CEO, Pres.   date    Bogdan Castle Maglich, PhD, Chairman   date

                                        5

<PAGE><PAGE>

                                  EXHIBIT 10.9

                           FIRST AMENDED AND RESTATED
                             STOCK OPTION AGREEMENT
                           (NONQUALIFIED STOCK OPTION)

OPTIONEE:                  Isaac Yeffet

NUMBER OF SHARES:          1,000,000

OPTION EXERCISE PRICE:     $1.00 per Share

DATE OF GRANT:             July 12, 2002

EXERCISE TERM:             Six Years from the Date of Grant

VESTING  SCHEDULE:         The  option  will  vest as follows over the Exercise
                           Term:

                           Date  of  Grant            500,000  shares

                           Date  following  the  Measurement
                           Period  (as  defined  in  the
                           Consulting  Agreement  (as  defined
                           below))                    500,000  shares

     THIS FIRST AMENDED AND RESTATED STOCK OPTION AGREEMENT (the "AGREEMENT") is
entered  into effective as of the 12th day of July, 2002 by and between HIENERGY
TECHNOLOGIES, INC. (the "Company"), a Washington corporation, and the individual
designated  above  (the  "Optionee"), and it amends and restates in its entirety
that certain Option Agreement entered into effective as of the 12th day of July,
2002  by  and  between  the  Company  and  the  Optionee.

                                    RECITALS
                                    --------

     WHEREAS,  a  consulting agreement (the "Consulting Agreement") was executed
between  Yeffet Security Consultant, Inc. ("Yeffet"), a corporation solely owned
by  the  Optionee, and HiEnergy Technologies, Inc., a Washington corporation, on
July  12,  2002;  and

     WHEREAS,  through  Yeffet  the  Optionee  has  agreed  to  perform valuable
services  for  the  Company;

First Amended and Restated Stock Option Agreement,
Isaac Yeffet - Page 1

<PAGE>
NOW,  THEREFORE,  the  parties  agree  to  the  terms and conditions as follows:

1.     GRANT OF OPTION.

1.1     Option.  An option to purchase shares of the Company's Common Stock, par
        ------
     value  $0.0001  per share, (the "Shares") is hereby granted to the Optionee
(the  "Option").

1.2     Number  of  Shares.  The number of Shares that the Optionee can purchase
        ------------------
upon  exercise  of  the  Option  is  set  forth  above.

1.3     Option  Exercise Price.  The price the Optionee must pay to exercise the
        ----------------------
Option  (the  "Option  Exercise  Price")  is  set  forth  above.

1.4     Date  of Grant.  The date the Option is granted (the "Date of Grant") is
        --------------
set  forth  above.

1.5     Type  of  Option.  The  Option  is  intended  to be a Nonqualified Stock
        ----------------
Option.  It  is  not intended to qualify as an Incentive Stock Option within the
meaning  of  Section  422  of the Internal Revenue Code of 1986, as amended from
time  to  time,  or  any  successor  provision  thereto.

1.6     Condition.  The  Option  is  conditioned  on the Optionee's execution of
        ---------
this  Agreement.  If  this  Agreement is not executed by the Optionee, it may be
canceled  by  the  Board.

2.     DURATION.

     The  Option  shall  be exercisable to the extent and in the manner provided
herein  during  the  Exercise Term, which is set forth above; provided, however,
that  the Option may be earlier terminated as provided in Section 1.6 or Section
5  hereof  or  in  the  Consulting  Agreement.

3.     VESTING.

     The Option shall vest, and may be exercised, with respect to the Shares, on
or after the dates set forth above, subject to earlier termination of the Option
as  provided  in  Section  1.6  and Section 5 hereof.  The right to purchase the
Shares  as  they become vested shall be cumulative and shall continue during the
Exercise  Term  unless sooner terminated as provided herein or in the Consulting
Agreement.

4.     MANNER OF EXERCISE AND PAYMENT.

4.1     To  exercise  the  Option, the Optionee must deliver a completed copy of
the Option Exercise Form, attached hereto as Exhibit A, to the address indicated
on  such  Form or such other address designated by the Company from time to
time.  Contemporaneously  with  the  delivery  of  the Option Exercise Form, the

First Amended and Restated Stock Option Agreement,
Isaac Yeffet - Page 2

<PAGE>

Optionee  shall  tender  the  Option Exercise Price to the Company, (i) by cash,
check,  wire  transfer  or  such  other  method  of  payment  (e.g., delivery or
attestation  of  Shares already owned) as may be acceptable to the Company, (ii)
by  "cashless  exercise"  in  accordance with the provisions of Section 4.3, but
only  when  a  registration  statement  under Securities Act qualifying a public
offering  of  the  underlying  Shares  is  not  then  in  effect,  or (iii) by a
combination  of  the foregoing methods of payment selected by the Optionee.  The
Option  may  be exercised in whole or in part with respect to the vested Shares.
Within  thirty  (30)  days of delivery of the Option Exercise Form and tender of
the Option Exercise Price, the Company shall deliver certificates evidencing the
Shares  to  the  Optionee,  duly endorsed for transfer to the Optionee, free and
clear  of  all  liens,  security  interests, pledges or other claims or charges.

4.2     The  Optionee shall not be deemed to be the holder of, or to have any of
the  rights  of  a holder with respect to any Shares subject to the Option until
(i) the Option shall have been exercised pursuant to the terms of this Agreement
and  the Optionee shall have paid the full purchase price for the number of
Shares in respect of which the Option was exercised, (ii) the Company shall have
issued  and  delivered the Shares to the Optionee, and (iii) the Optionee's name
shall  have been entered as a stockholder of record on the books of the Company,
whereupon  the  Optionee  shall have full voting and other ownership rights with
respect  to  such  Shares.

4.3     Notwithstanding  any provisions herein to the contrary, if the Per Share
Market  Value  of  one share of Common Stock is greater than the Option Exercise
Price  (at  the  date  of calculation as set forth below), in lieu of exercising
this  Option  by  payment  of  cash,  the Optionee may exercise this Option by a
cashless  exercise  and shall receive the number of shares of Common Stock equal
to  an amount (as determined below) by surrendering this Option at the principal
office  of  the Company together with the properly endorsed Option Exercise Form
in  which  event  the  Company shall issue to the Optionee a number of shares of
Common  Stock  computed  using  the  following  formula:

          X = Y - (A)(Y)
                  ------
                     B

Where     X =     the number of shares of Common Stock to be issued to the
                  Optionee.

          Y =     the number of shares of Common Stock purchasable upon
                  exercise of all of the Option or, if only a portion of
                  the Option is being exercised, the portion
                  of the Option being exercised.

          A =     the Option Exercise Price.

          B  =     the  Per  Share  Market  Value  of one share of Common Stock.

"Per  Share Market Value" means on any particular date (a) the closing bid price
-------------------------
for  a  share of Common Stock in the over-the-counter market, as reported by the
OTC  Bulletin Board (or in the National Quotation Bureau Incorporated or similar

First Amended and Restated Stock Option Agreement,
Isaac Yeffet - Page 3

<PAGE>

organization  or agency succeeding to its functions of reporting prices), or any
United  States  market  or  exchange  senior to the OTC Bulletin Board where the
Company's Common Stock may become traded, at the close of business on such date,
or (b) if the Common Stock is not then reported by the OTC Bulletin Board or the
National  Quotation  Bureau  Incorporated  (or  similar  organization  or agency
succeeding  to  its  functions  of  reporting  prices  or  any  senior market or
exchange),  then  the  average  of  the  "Pink  Sheet"  quotes  for the relevant
conversion  period,  as  determined  in  good  faith  by  the Company's Board of
Directors,  or  (c)  if  the  Common  Stock is not then publicly traded the fair
market  value of a share of Common Stock as determined by the Company's Board of
Directors  in good faith; provided, however, that the Optionee, after receipt of
                          --------  -------
the  determination  by the Company's Board of Directors, shall have the right to
select,  jointly  with the Company, an Independent Appraiser, in which case, the
fair  market value shall be the determination by such Independent Appraiser; and
provided, further that all determinations of the Per Share Market Value shall be
--------  -------
appropriately  adjusted  for  any stock dividends, stock splits or other similar
transactions  during  such period.  The determination of fair market value shall
be based upon the fair market value of the Company determined on a going concern
basis  as  between  a willing buyer and a willing seller and taking into account
all  relevant  factors determinative of value, and shall be final and binding on
all  parties.  In  determining  the  fair  market  value of any shares of Common
Stock,  no  consideration  shall be given to any restrictions on transfer of the
Common  Stock imposed by agreement or by federal or state securities laws, or to
the  existence  or  absence  of,  or  any  limitations  on,  voting  rights.

"Independent  Appraiser"  means  a  nationally  recognized  or  major  regional
------------------------
investment  banking  firm or firm of independent certified public accountants of
--------
recognized standing (which may be the firm that regularly examines the financial
statements  of  the  Company)  that  is  regularly  engaged  in  the business of
appraising  the  capital  stock  or  assets of corporations or other entities as
going  concerns,  and  which  is  not  affiliated with either the Company or the
Optionee.

5.     TERMINATION.

5.1     Termination  of  Consulting  Agreement.  If  the  Optionee's status as a
        --------------------------------------
Consultant  is  terminated  at  any  time  after the grant of the Option for any
reason, then any vested options shall terminate on the expiration date otherwise
provided  in  this  Agreement.  Any  nonvested  options  shall  terminate
immediately  upon the effective date of termination of the Consulting Agreement;
provided,  however, that nonvested options shall vest and terminate as otherwise
provided  in  this  Agreement if Optionee's status as a Consultant is terminated
due  to  Optionee's  death  or  disability.

6.     TRANSFERABILITY.

     The  Optionee  may  transfer vested options in whole or in part, subject to
the consent of the Company, which shall not be unreasonably withheld, delayed or
conditioned;  provided,  however,  that  the Optionee shall, in the case of each
such  transfer,  provide  the  Company  with  an  opinion  of counsel reasonably

First Amended and Restated Stock Option Agreement,
Isaac Yeffet - Page 4

<PAGE>

acceptable  to  the Company (both as to substance and the competence of counsel)
that  such  transfer  may  be  accomplished  in  accordance  with all applicable
securities  laws.  Any  transferee shall execute a writing in form and substance
satisfactory to the Company and its counsel agreeing to be bound by the terms of
this  Agreement.

7.     RESTRICTIONS  ON  THE  OPTIONS;  RESTRICTIONS  ON  THE  SHARES.

     The  Option,  whether  owned  by the Optionee or his transferee, may not be
exercised  at  any  time  unless, in the opinion of counsel for the Company, the
issuance  and  sale  of  the  Shares  issued  upon  such exercise is exempt from
registration  under  the  Securities  Act  of  1933,  as  amended,  or any other
applicable  federal  or  state securities law, rule or regulation, or the Shares
have  been  duly  registered  under  such  laws.  Except  as otherwise agreed in
writing,  the Company shall not be required to register the Shares issuable upon
the  exercise  of  the  Option under any such laws.  Unless the Shares have been
registered  under  all  applicable laws, the Optionee (or his transferee, as the
case  may be) shall represent, warrant and agree, as a condition to the exercise
of  the  Option,  that  the  Shares  are being purchased for investment only and
without  a  view to any sale or distribution of such Shares and that such Shares
shall not be transferred or disposed of in any manner without registration under
such  laws,  unless  it  is  the  opinion of counsel for the Company that such a
disposition  is exempt from such registration.  The Optionee (or his transferee,
as the case may be) acknowledges that an appropriate legend, in such form as the
Company  shall  determine,  giving  notice  of  the foregoing restrictions shall
appear  conspicuously  on all certificates evidencing the Shares issued upon the
exercise  of the Option.  The Company may, in its sole discretion, place a "Blue
Sky" legend on the certificates in accordance with U.S. state securities laws or
as  required  by  applicable  securities  laws.

8.     NO  RIGHT  TO  CONTINUED  STATUS  AS  CONSULTANT.

     Nothing  in this Agreement shall be interpreted or construed to confer upon
the  Optionee  any  right  with  respect  to continuance as a Consultant for the
Company  or  any Parent or Subsidiary, nor shall this Agreement interfere in any
way  with  the  right  of the Company or a Parent or Subsidiary to terminate the
Optionee's  status  as  a  Consultant  at  any  time.

9.     ADJUSTMENTS  UPON  CERTAIN  EVENTS.

9.1.     Adjustments  Upon  Changes  in Capitalization.  Subject to any required
         ---------------------------------------------
action  by  the  shareholders  of  the  Company,  the  event  of  a  change  in
capitalization,  such  as a stock split or other subdivision or consolidation of
Shares  or  the  payment of any stock dividend consisting of Shares or any other
increase  or  decrease  in  the  number  of  Shares  effected without receipt of
consideration  by  the  Company,  the  Company  shall  make  appropriate  and
proportionate  adjustments  to  the  number  and  class of Shares subject to the
Option  and  the  purchase  price  for such Shares or other stock or securities;
provided, however, that conversion of the Option will not be deemed to have been

First Amended and Restated Stock Option Agreement,
Isaac Yeffet - Page 5

<PAGE>

"effected  without  receipt of consideration".  Any adjustments as a result
of  a  change  in  the  Company's  capitalization  will  be made by the Board of
Directors, whose determination in that respect is final, binding and conclusive.
Except  as  otherwise  expressly  provided in this Section 9.1, any issue by the
Company  of  shares of stock of any class, or securities convertible into shares
of  stock  of  any  class, shall not affect the number of Shares or the exercise
price  of  the  Shares  subject  to the Option, and no adjustments in the Option
shall  be  made by reason thereof.  The grant of this Option does not in any way
affect the right or power of the Company to make adjustments, reclassifications,
reorganizations  or  changes  of  its  capital  or  business  structure.

9.2.     Liquidation  or  Dissolution.  In  the  event  of  a  liquidation  or
         ----------------------------
dissolution, any unexercised options will terminate. The Board of Directors may,
in its discretion, provide that the Optionee (or his transferee, as the case may
be)  will  have  the  right  to  exercise the Optionee's Option as to all of the
optioned  stock  prior  to  the  consummation of the liquidation or dissolution.

9.3.     Change  of  Control,  Merger, Sale of Assets, Etc.  In the event of the
         -------------------------------------------------
sale  or other transfer of the outstanding shares of stock of the Company in one
transaction or a series of related transactions or a merger or reorganization of
the  Company with or into any other corporation, where immediately following the
transaction,  those  persons  who  were  shareholders of the Company immediately
before  the  transaction  control  less  than  50%  of  the  voting power of the
surviving  organization  (a  "change  of  control  event")  or in the event of a
proposed  sale  of substantially all of the assets of the Company (collectively,
"sale  transaction"),  the Option shall be assumed or replaced with a substitute
equivalent  option.

10.     WITHHOLDINGS  OF  TAXES.

     The Company shall have the right to deduct from any distribution of cash to
the  Optionee  (or  his  transferee,  as the case may be) an amount equal to the
federal,  state  and  local income taxes and other amounts as may be required by
law  to  be  withheld (the "Withholdings Taxes") with respect to the Option.  If
the  Optionee  (or  his  transferee,  as the case may be) is entitled to receive
Shares upon exercise of the Option, the Optionee (or his transferee, as the case
may  be)  shall pay the Withholdings Taxes (if any) to the Company in cash prior
to  the issuance of such Shares.  In satisfaction of the Withholdings Taxes, the
Optionee  (or  his  transferee,  as the case may be) may make a written election
(the "Tax Election"), which may be accepted or rejected in the discretion of the
Company,  to  have  withheld a portion of the Shares issuable to him or her upon
exercise  of  the  Option,  having  an  aggregate Fair Market Value equal to the
Withholdings  Taxes,  provided that, if the Optionee may be subject to liability
under  Section  16(b)  of  the  Exchange  Act, the election must comply with the
requirements  applicable  to  Share  transactions  by  such  Optionees.

First Amended and Restated Stock Option Agreement,
Isaac Yeffet - Page 6

<PAGE>

11.     MODIFICATION  OF  AGREEMENT.

     This  Agreement  may be modified, amended, suspended or terminated, and any
terms  or conditions may be waived, only by a written instrument executed by the
parties  hereto.

12.     SEVERABILITY.

     Should  any  provision  of  this  Agreement be held by a court of competent
jurisdiction  to  be  unenforceable  or  invalid  for  any reason, the remaining
provisions  of  this  Agreement shall not be affected by such holdings and shall
continue  in  full  force  in  accordance  with  their  terms.

13.     GOVERNING  LAW.

     The  validity,  interpretation,  construction  and  performance  of  this
Agreement  shall  be  governed  by  the  laws of the State of California without
giving  effect  to  the  conflicts  of  laws  principles  thereof.

14.     SUCCESSORS  IN  INTEREST.

     This  Agreement  shall  be  binding  upon, and inure to the benefit of, the
Company  and  its successors and assigns, and upon any person acquiring, whether
by  merger,  consolidation,  reorganization,  purchase  of  stock  or assets, or
otherwise,  all or substantially all of the Company's assets and business.  This
Agreement  shall  inure  to the benefit of the Optionee's transferees, heirs and
legal representatives.  All obligations imposed upon the Optionee and all rights
granted  to  the  Company  under  this  Agreement  shall  be  final, binding and
conclusive upon the Optionee's transferees, heirs, executors, administrators and
successors.

15.     RESOLUTION  OF  DISPUTES.

     Any dispute or disagreement which may arise under, or as a result of, or in
any  way  relate  to,  the  interpretation,  construction or application of this
Agreement  shall  be  determined  by  the  Board  of  Directors  of the Company;
provided,  however,  that  any  component  of  such a determination based on the
interpretation,  construction or application of the Consulting Agreement must be
established  as  provided  by  the Consulting Agreement.  Any determination made
hereunder shall be final, binding and conclusive on the Optionee and the Company
for  all  purposes.

First Amended and Restated Stock Option Agreement,
Isaac Yeffet - Page 7

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

HIENERGY TECHNOLOGIES, INC.

By:     /s/ Barry Alter
        ----------------------

Name:    Barry Alter
        ----------------------

Title:   President and CEO
        ----------------------

     By  signing  below,  Optionee  hereby accepts the Option subject to all its
terms  and  provisions.

OPTIONEE

Signature:     /s/ Isaac Yeffet
               ----------------

Print Name:     Isaac Yeffet
               ----------------

                               [EXHIBIT  FOLLOWS]

First Amended and Restated Stock Option Agreement,
Isaac Yeffet - Page 8

<PAGE>

                                    EXHIBIT A

                              OPTION EXERCISE FORM
                              --------------------

To:  HiEnergy Technologies, Inc.

(1)     a)     The undersigned hereby elects to purchase the number of shares of
the common stock of HiEnergy Technologies, Inc. (the "Company") set forth below,
pursuant  to  the  terms of the Stock Option Agreement dated __________________,
2002, tendering simultaneous full payment of the Total Option Exercise Price for
such  shares.

Number of Shares:                         ________________ Shares

Option Exercise Price Per Share:          x  $____________ per Share

Total Option Exercise Price:              =  $____________

     b)     The undersigned hereby elects to exercise the Option with respect to
the  number  of  underlying  Shares  set  forth below according to the "cashless
exercise"  provisions  of  the  Option.

      Number of underlying Shares:          ________________ Shares

The undersigned understands that he will be issued a certificate for a lesser
number of net Shares based on the provisions of the Option.

(2)     In exercising this Option, the undersigned hereby confirms and
acknowledges that:

a)     the  shares of Common Stock to be issued upon exercise are being acquired
solely  for  the  account  of the undersigned and not as a nominee for any other
party;  and

b)     the shares of Common Stock to be issued upon exercise are not acquired
with a view toward distribution; and

c)     the undersigned is an "accredited investor" as that term is defined in
Rule 501 of Regulation D under the Securities Act of 1933, as amended, and as
provided in the Subscription Agreement; and

d)     the undersigned will not offer, sell or otherwise dispose of any such
shares of Common Stock except pursuant to an effective registration, or an

Option Exercise Form - Page 1

<PAGE>

exemption therefrom, under the Securities Act of 1933, as amended, together with
a similar exemption under the securities laws of all applicable jurisdictions;
and

e)     the undersigned otherwise reaffirms all representations, warranties, and
indemnifications contained in the Stock Option Agreement and Subscription
Agreement, including, but not limited to, those contained in Section 7 of the
Stock Option Agreement; and

f)     the undersigned has reviewed all of Company's public filings with the
Securities and Exchange Commission; and

g)     the undersigned consents to delay the exercise of the Option until, in
the Company's judgment, the Company has disclosed any additional matters that
need to be disclosed to the undersigned, beyond those contained in the public
filings with the Securities and Exchange Commission.

(3)     Subject  to  Section  (2),  please  issue  a certificate or certificates
representing  said  shares  of  Common  Stock  in the name of the undersigned as
instructed.

(4)     Please  issue  a  new Option for the unexercised portion of the attached
Option  in  the  name  of  the  undersigned.

This _____ day of __________________, _____:

___________________________________________
Signature

___________________________________________
Print Name of Signatory

___________________________________________
Name of Entity (if applicable)

Send  or  deliver  this  Form  with  an  original  signature  to:

HiEnergy Technologies, Inc.
Attn:  President
10 Mauchly Drive
Irvine, CA  92618
USA

Option Exercise Form - Page 2

<PAGE>

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