Document:

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                          STANDARD FORM OF LOFT LEASE
                    The Real Estate Board of New York, Inc.
                    (c)Copyright 1962, All Rights Reserved.
                  Reproduction in whole or in part prohibited.

Agreement of Lease, made as of this           day of March 1999, between
    Pennbus Realties, Inc. c/o Olmstead Properties, Inc.,
    575 Eighth Avenue, Suite 2400,
    New York, New York 10018
party of the first part, hereinafter referred to as Landlord OWNER, and

                  FORMAN INTERACTIVE CORP., with an address at
                      134 Fifth Avenue, New York, New York

                    party of the second part, hereinafter referred to as TENANT.

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

Witnesseth: Owner hereby leases to Tenant and Tenant hereby hires from Owner

                  The Entire rentable portion of the Eleventh (11th) Floor
(the "Demised Premises")

in the building known as 575 Eighth Avenue (the "Building") in the Borough of
Manhattan, City of New York, for the term of Ten (10) Years, Six and one-half
(6 1/2) months (or until such term shall sooner cease and expire as hereinafter
provided) to commence on the Fifteenth day of March nineteen hundred and
Ninety-Nine, and to end on the Thirtieth day of September Two Thousand and Nine
and both dates inclusive, at an annual rental rate of See Clause 41 (a) (i)

which Tenant agrees to pay in lawful money of the United States which shall be
legal tender in payment of all debts and dues, public and private, at the time
of payment, in equal monthly installments in advance on the first day of each
month during said term, at the office of Owner or such other place as Owner may
designate, without any set off or deduction whatsoever, except that Tenant shall
pay the first _____ monthly installment(s) on the execution hereof (unless this
lease be a renewal).
     In the event that, at the commencement of the term of this lease, or
thereafter, Tenant shall be in default in the payment of rent to Owner pursuant
to the terms of another lease with Owner or with Owner's predecessor in
interest, Owner may at Owner's option and without notice to Tenant add the
amount of such arrears to any monthly installment of rent payable hereunder and
the same shall be payable to Owner as additional rent.
     The parties hereto, for themselves, their heirs, distributees, executors,
administrators, legal representatives, successors and assigns, hereby covenant
as follows:

Rent:
     1. Tenant shall pay the rent as above and as hereinafter provided.

Occupancy:
     2. Tenant shall use and occupy demised premises for GENERAL OFFICES
provided such use is in accordance with the certificate of occupancy for the
building, if any, and for no other purpose.

Alterations:
     3. Tenant shall make no changes in or to the demised premises of any nature
without Owner's prior written consent. Subject to the prior written consent of
Owner, and to the provisions of this article, Tenant at Tenant's expense, may
make alterations, installations, additions or improvements which are
non-structural and which do not affect utility services or plumbing and
electrical lines, in or to the interior of the demised premises using
contractors or mechanics first approved in each instance by Owner which approval
shall not be unreasonably withheld. Tenant shall, at its expense, before making
any alterations, additions, installations or improvements obtain all permits,
approval and certificates required by any governmental or quasi-govermental
bodies and (upon completion) certificates of final approval thereof and shall
deliver promptly duplicates of all such permits, approvals and certificates to
Owner. Tenant agrees to carry and will cause Tenant's contractors and
sub-contractors to carry such workman's compensation, general liability,
personal and property damage insurance as Owner may require. If any mechanic's
lien is filed against the demised premises, or the building of which the same
forms a part, for work claimed to have been done for, or materials furnished to,
Tenant, whether or not done pursuant to this article, the same shall be

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discharged by Tenant within thirty days thereafter, at Tenant's expense, by
filing the bond required by law or otherwise. All fixtures and all paneling,
partitions, railings and like installations, installed in the premises at any
time, either by Tenant or by Owner on Tenant's behalf, shall, upon installation,
become the property of Owner and shall remain upon and be surrendered with the
demised premises unless, Owner, by notice to Tenant no later than twenty days
prior to the date fixed as the termination of this lease, elects to relinquish
Owner's rights there to and have them removed by Tenant, in which event the same
shall be removed from the demised premises by Tenant prior to the expiration of
the lease, at Tenant's expense. Nothing in this Article shall be construed to
give Owner title to or to prevent Tenant's removal of trade fixtures, moveable
office furniture and equipment, but upon removal of any such from the premises
or upon removal of other installations as may be required by Owner, Tenant shall
immediately and at its expense, repair and restore the premises to the condition
existing prior to installation and repair any damage to the demised premises or
the building due to such removal. All property permitted or required to be
removed, by Tenant at the end of the term remaining in the premises after
Tenant's removal shall be deemed abandoned and may, at the election of Owner,
either be retained as Owner's property or removed from the premises by Owner, at
Tenant's expense.
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Repairs:
     4. Owner shall maintain and repair the exterior of structure and the public
portions of the building. Tenant shall, throughout the term of this lease, take
good care of the demised premises including the bathrooms and lavatory
facilities (if the demised premises encompass the entire floor of the building)
and the windows and window frames and, the fixtures and appurtenances therein
and at Tenant's sole cost and expense promptly make all repairs thereto and to
the building, whether structural or non-structural in nature, caused by or
resulting from the carelessness, omission, neglect or improper conduct of
Tenant, Tenant servants, employees, invitees, or licensees, and whether or not
arising from such Tenant conduct or omissions, when required by other provisions
of this lease, including Article 6. Tenant shall also repair all damage to the
building and the demised premises caused by the moving of Tenant's fixtures,
furniture and equipment. All the aforesaid repairs shall be of quality or class
equal to the original work or construction. If Tenant fails, after ten days
notice, to proceed with due diligence to make repairs required to be made by
Tenant, the same may be made by the Owner at the expense of Tenant, and the
expenses thereof incurred by Owner shall be collectible, as additional rent,
after rendition of a bill or statement therefor. If the demised premises be or
become infested with vermin; Tenant shall, at its expense, cause the same to be
exterminated. Tenant shall give Owner prompt notice of any defective condition
in any plumbing, heating system or electrical lines located in the demised
premises and following such notice. Owner shall remedy the condition with due
diligence, but at the expense of Tenant, if repairs are necessitated by damage
or injury attributable to Tenant, Tenant's servants, agents, employees, invitees
or licenses as aforesaid. Except as specifically provided in Article 9 or
elsewhere in this lease, there shall be no allowance to the Tenant for a
diminuation of rental value and no liability on the part of Owner by reason of
inconvenience, annoyance or injury to business arising from Owner, Tenant or
others making or failing to make any repairs, alterations, additions or
improvements in or to any portion of the building or the demised premises or in
and to the fixtures, appurtenances or equipment thereof. It is specifically
agreed that Tenant shall not be entitled to any set off or reduction of rent by
reason of any failure of Owner to comply with covenants of this or any other
articles of this lease. Tenant agrees that Tenant's sole remedy at law in such
instances will be by way of any action for damages for breach of contract. The
provisions of this Article 4 with respect to the making of repairs shall not
apply in the case of fire or other casualty with regard to which Article 9
hereof shall apply.

Window Cleaning:
     5. Tenant will not clean nor require, permit, suffer or allow any window in
the demised premises to be cleaned from the outside in violation of Section 202
of the New York State Labor Law or any other applicable law or of the Rules of
the Board of Standards and Appeals, or of any other Board or body having or
asserting jurisdiction.

Requirements of Law, Fire Insurance
     6. Prior to the commencement of the lease term, if Tenant is then in
possession, and at all times thereafter. Tenant shall, at Tenant's sole cost and
expense, promptly comply with all present and future laws, orders and
regulations of all state, federal, municipal and local governments, departments,
commissions and boards and any direction of any public officer pursuant to law,
and all orders, rules and regulations of the New York Board of Fire
Underwriters, or the Insurance Services Office, or any similar body which shall
impose any violations, order or duty upon Owner or Tenant with respect to the
demised premises, whether or not arising out of Tenant's use or manner of use
thereof, or, with respect to the building, if arising out of Tenant's use or
manner of use of the demised premises or the building (including the use

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permitted under the leases. Except as provided in Article 30 hereof, nothing
herein shall require Tenant to make structural repairs or alterations unless
Tenant has, by its manner of use of the demised premises or method of operation
therein violated any such laws, ordinances, orders, rules, regulations or
requirements with respect thereto. Tenant shall not do or permit any act or
thing to be done in or to the demised premises which is contrary to law, or
which will invalidate or be in conflict with public liability, fire or other
policies of insurance at any time carried by or for the benefit of Owner. Tenant
shall not keep anything in the demised premises except as now or hereafter
permitted by the Fire Department. Board of Fire Underwriters, Fire Insurance
Rating Organization and other authority having jurisdiction, and then only in
such manner and such quantity so as not to increase the rate for fire insurance
applicable to the building, nor use the premises in a manner which will increase
the insurance rate for the building or any property located therein over that in
effect prior to the commencement of Tenant's occupancy. If by reason of failure
to comply with the foregoing the fire insurance rate shall, at the beginning of
this lease or at any time thereafter, be higher than it otherwise would be, then
Tenant shall reimburse Owner, as additional rent hereunder, for that portion of
all fire insurance premiums thereafter paid by Owner which shall have been
charged because of such failure by Tenant. In any action or proceeding wherein
Owner and Tenant are parties, a schedule or "make-up" or rate for the building
or demised premises issued by a body making fire insurance rates applicable to
said premises shall be conclusive evidence of the facts therein stated and of
the several items and charges in the fire insurance rates then applicable to
said premises. Tenant shall not place a load upon any floor of the demised
premises exceeding the floor load per square foot area which it was designed to
carry and which is allowed by law. Owner reserves the right to prescribe the
weight and position of all safes, business machines and mechanical equipment.
Such installations shall be placed and maintained by Tenant, at Tenant's
expense, in settings sufficient, in Owner's judgment, to absorb and prevent
vibration, noise and annoyance.

Subordination:

     7. This lease is subject and subordinate to all ground or underlying leases
and to all mortgages which may now or hereafter affect such leases or the real
property of which demised premises are a part and to all renewals,
modifications, consolidations, replacements and extensions of any such
underlying leases and mortgages. This clause shall be self-operative and no
further instrument or subordination shall be required by any ground or
underlying lessor or by any mortgagee, affecting any lease or the real property
of which the demised premises are a part. In confirmation of such subordination.
Tenant shall execute promptly any certificate that Owner may request.

Tenants's Liability Insurance Property Loss, Damage, Indemnity:

     8. Owner or its agents shall not be liable for any damage to property of
Tenant or of others entrusted to employees of the building, nor for loss of or
damage to any property of Tenant by theft or otherwise, nor for any injury or
damage to persons or property resulting from any cause or willful act of
whatsoever nature, unless caused by or due to the negligence or willful act of
Owner, its agents, servants or employees; Owner or its agents shall not be
liable for any damage caused by other tenants or persons in, upon or about said
building or caused by operations in connection of any private, public or quasi
public work. If at any time any windows of the demised premises are temporarily
closed, darkened or bricked up (or permanently closed, darkened or bricked up,
if required by law) for any reason whatsoever including, but not limited to
Owner's own acts. Owner shall not be liable for any damage Tenant may sustain
thereby and Tenant shall not be entitled to any compensation therefor nor
abatement or diminution of rent nor shall the same release Tenant from its
obligations hereunder nor constitute an eviction. Tenant shall indemnify and
save harmless Owner against and from all liabilities, obligations, damages,
penalties, claims, costs and expenses for which Owner shall not be reimbursed by
insurance, including reasonable attorney's fees, paid, suffered or incurred as a
result of any breach by Tenant, Tenant's agents, contractors, employees,
invitees, or licensees, of any covenant or condition of this lease, or the
carelessness, negligence or improper conduct of the Tenant, Tenant's agents,
contractors, employees, invitees or licensees. Tenant's liability under this
lease extends to the acts and omissions of any sub-tenant, and any agent,
contractor, employee, invitee or licensee of any sub-tenant. In case any action
or proceeding is brought against Owner by reason of any such claim, Tenant, upon
written notice from Owner, will, at Tenant's expense, resist or defend such
action or proceeding by counsel approved by Owner in writing, such approval not
be unreasonably withheld.

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Destruction, Fire and Other Casualty:

     9. (a) If the demised premises or any part thereof shall be damaged by fire
or other casualty, Tenant shall give immediate notice thereof to Owner and this
lease shall continue in full force and effect except as hereinafter set forth,
(b) If the demised premises are partially damaged or rendered partially unusable
by fire or other casualty, the damages thereto shall be repaired by and at the
expense of Owner and the rent, until such repair shall be substantially
completed, shall be apportioned from the day following the casualty according to
the part of the premises which is usable. (c) If the demised premises are
totally damaged or rendered wholly unusable by fire or other casualty, then the
rent and other items of additional rent as hereinafter expressly provided shall
be proportionately paid up to the time of the casualty and thenceforth shall
cease until the date when the premises shall have repaired and restored by
Owner, subhject to Owner's right to elect not to restore the same as hereinafter
provided. (d) If the demised premises are rendered wholly unusable or (whether
or not the demised premises are damaged in whole or in part) if the building
shall be so damaged that Owner shall decide to demolish it or to rebuild it,
then, in any of such events, Owner may elect to terminate this lease by written
notice to Tenant, given within 90 days after such fire or casualty, or 30 days
after adjustment of the insurance claim for such fire or casualty whichsoever is
sooner, specifying a date for the expiration of the lease, which date shall not
be more than 60 days after giving of such notice, and upon the date specified in
such notice the term of this lease shall expire as fully and completely as if
such date were the date set forth above for the termination of this lease and
Tenant shall forthwith quit, surrender and vacate the premises without prejudice
however, to Owner's rights and remedies against Tenant under the lease
provisions in effect prior to such termination, and any rent owing shall be paid
up to such date and any payments of rent made by Tenant which were on account of
any period subsequent to such date shall be returned to Tenant. Unless Owner
shall serve a termination notice as provided for herein. Owner shall make the
repairs and restorations under the conditions of (b) and (c) hereof, with all
reasonable expedition, subject to delays due to adjustment of insurance claims,
labor troubles and causes beyond Owner's control. After any such casualty,
Tenant shall cooperate with Owner's restoration by removing from the premises as
promptly as reasonably possible, all of Tenant's salvageable inventory and
movable equipment, furniture, and other property. Tenant's liability for rent
shall resume (5) days after written notice from Owner that the premises are
substantially ready for Tenant's occupancy, (c) Nothing contained hereinabove
shall relieve Tenant from liability that may exist as a result of damage from
fire or other casualty. Notwithstanding the foregoing, including Owner's
obligation to restore under subparagraph (b) above, each party shall look first
to any insurance in its favor before making any claim against the other party
for recovery for loss or damage resulting from fire or other casualty, and to
the extent that such insurance is in force and collectible and to the extent
permitted by law, Owner and Tenant each hereby releases and waives all right of
recovery with respect to subparagraphs (b), (d) and (e) above against the other
or any one claiming through or under each of them by way of subrogation or
otherwise. The release and waiver herein refered to shall be deemed to include
any loss or damage to the demised premises and/or any personal property,
equipment, trade fixtures, goods and merchandise located therein. The foregoing
release and waiver shall be in force only if both relessors' insurance policies
contain a clause providing that such a release or waiver shall not invalidate
the insurance, if, and to the extent, that such waiver can be obtained only by
the payment of additional premiums, then the party benefitting from the waiver
shall pay such premium within ten days after written demand or shall be deemed
to have agreed that the party obtaining insurance coverage shall be free of any
further obligation under the provisions hereof with respect to waiver of
subrogation. Tenant acknowledges that Owner will not carry insurance on Tenant's
furniture and or furnishings or any fixtures or equipment, improvements, or
appurtenances removable by Tenant and agrees that Owner will not be obligated to
repair any damage thereto or replace the same. (f) Tenant hereby waives the
provisions of Section 227 of the Real Property Law and agrees that the
provisions of this article shall govern and control in lieu thereof.

Eminent Domain:

     10. If the whole or any part of the demised premises shall be acquired or
condemned by Eminent Domain for any public or quasi public use or purpose, then
and in that event, the term of this lease shall cease and terminate from the
date of title vesting in such proceeding and Tenant shall have no claim for the
value of any unexpired term of said lease. Tenant shall have the right to make
an independent claim to the condemning authority for the value of Tenant's
moving expenses and personal property, trade fixtures and equipment, provided
Tenant is entitled pursuant to the terms of the lease to remove such property,
trade fixtures and equipment at the end of the term and provided further such
claim does not reduce Owner's award.

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Assignment, Mortgage, Etc.:

     11. Tenant, for itself, its heirs, distributees, executors, administrators,
legal representatives, successors and assigns, expressly covenants that is shall
not assign, mortgage or encumber this agreement, nor underlet, or suffer or
permit the demised premises or any part thereof to be used by others, without
the prior written consent of Owner in each instance. Transfer of the majority of
the stock of a corporate Tenant or a majority partnership interest of a
partnership Tenant shall be deemed an assignment. If this lease be assigned, or
if the demised premises or any part thereof be underlet or occupied by anybody
other than Tenant, Owner may, after default by Tenant, collect rent from it;
assignee, under-tenant or occupant, and apply the net amount collected to the
rent herein reserved, but no such assignment, underletting, occupancy or
collection shall be deemed a waiver of this covenant, or the acceptance of the
assignee, under-tenant or occupant as tenant, or a release of Tenant from the
further performance by Tenant of covenants on the part of Tenant herein
contained. The consent by Owner to an assignment or underletting shall not in
any wise construed to relieve Tenant from obtaining the express consent in
writing of Owner to any further assignment or underletting.

Electric Current:

     12. Rates and conditions in respect to submetering of rent inclusion, as
the case may be, to be added in RIDER attached hereto. Tenant covenants and
agrees that at all times its use of electric current shall not exceed the
capacity of existing lenders to the building or the risers of wiring
installation and Tenant may not use any electrical equipment which, in Owner's
opinion, reasonably exercised, will overload such installations or interfere
with the use thereof by other tenants of the building. The change at any time of
the character of electric service shall in no wise make Owner liable or
responsible to Tenant, for any loss, damages or expenses which Tenant may
sustain.

Access to Premises:

     13. Owner or Owner's agents shall have the right (but shall not be
obligated) to enter the demised premises in any emergency at any time, and at,
other reasonable times, and at other reasonable times, to examine the same and
to make such repairs, replacements and improvements as Owner may deem necessary
and reasonably desirable to any portion of the building or which Owner may elect
to perform in the premises after Tenant's failure to make repairs or perform any
work which Tenant is obligated to perform under this lease, or for the purpose
of complying with laws, regulations and other directions of governmental
authorities. Tenant shall permit Owner to use and maintain and replace pipes and
conduits in and through the demised premises and to erect new pipes and conduits
therein provided, wherever possible, they are within walls or otherwise
concealed. Owner may during the progress of any work in the demised premises,
take all necessary materials and equipment into said premises without the same
constituting an eviction, nor shall the Tenant be entitled to any abatement of
rent which such work is in progress not to any damages by reason of loss or
interruption of business or otherwise. Throughout the term hereof Owner shall
have the right to enter the demised premises at reasonable hours on reasonable
notice, for the purpose of showing the same to prospective purchasers or
mortgagees of the building, and during the last six months of the term for the
purpose of showing the same to prospective tenants and may, during said six
months period, place upon the demised premises the usual notices "To Let" and
"For Sale" which notices Tenant shall permit to remain thereon without
molestation. If Tenant is not present to open and permit any entry into the
premises, Owner or Owner's agents may enter the same whenever such entry may be
necessary or permissible by master key or forcibly and provided reasonable care
is exercised to safeguard Tenant's property, such entry shall not render Owner
or its agents liable therefor, nor in any event shall the obligations of Tenant
hereunder be affected. If during the last month of the term Tenant shall have
removed all or substantially all of Tenant's property therefrom. Owner may
immediately enter, alter, renovate or redecorate the demised premises without
limitation or abatement of rent, or incurring liability to Tenant for any
compensation and such act shall have not effect on this lease or Tenant's
obligations hereunder.

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Vault, Vault Space, Area:

     14. No Vaults, vault space or area, whether or not reclosed or covered, not
within the property line of the building is leased hereunder, anything contained
in or indicated on any sketch, blue print or plan, or anything contained
elsewhere in this lease to the contrary notwithstanding. Owner makes no
representation as to the location of the property line of the building. All
vaults and vault space and all such areas not within the property line of the
building, which Tenant may be permitted to use and/or occupy, is to be used
and/or occupied under a revocable license, and if any such license be revoked,
or if the amount of such space or area be diminished or required by any federal,
state or municipal authority or public utility, Owner shall not be subject to
any liability nor shall Tenant be entitled to any compensation or diminution or
abatement of rent, nor shall such revocation, diminution or requisition be
deemed constructive or actual eviction. Any tax, fee or charge of municipal
authorities for such vault or area shall be paid by Tenant, if used by Tenant,
whether or not specifically leased hereunder.

Occupancy:

     15. Tenant will not at any time use or occupy the demised premises in
violation of the certificate of occupancy issued for the building of which the
demised premises are a part. Tenant has inspected the premises and accepts them
as is, subject to the riders annexed hereto with respect to Owner's work, if
any. In any event, Owner makes no representation as to the condition of the
premises and Tenant agrees to accept the same subject to violations, whether or
not of record. If any governmental license or permit shall be required for the
proper and lawful conduct of Tenant's business. Tenant shall be responsible for
and shall procure and maintain such license or permit.

Bankruptcy:

     16. (a) Anything elsewhere in this lease to the contrary notwithstanding,
this lease may be cancelled by Owner by sending of a written notice to Tenant
within a reasonable time after the happening of any one or more of the following
events: (1) the commencement of a case in bankruptcy or under the laws of any
state naming Tenant as the debtor; or (2) the making by Tenant of an assignment
or any other arrangement for the benefit of creditors under any state statute.
Neither Tenant nor any person claiming through or under Tenant, or by reason of
any statute or order of court, shall thereafter be entitled to possession of the
premises demised but shall forthwith quit and surrender the premises. If this
lease shall be assigned in accordance with its terms, the provisions of this
Article 16 shall be applicable only to the party then owning Tenant's interest
in this lease.

         (b) It is stipulated and agreed that in the event of the termination of
this lease pursuant to (a) hereof, Owner shall forthwith, notwithstanding any
other provisions of this lease to the contrary, be entitled to recover from
Tenant as and for liquidated damages an amount equal to the difference between
the rental reserved hereunder for the unexpired portion of the term demised and
the fair and reasonable rental value of the demised premises for the same
period. In the computation of such damages the difference between any
installment of rent becoming due hereunder after the date of termination and the
fair and reasonable rental value of the demised premises for the period for
which such installment was payable shall be discounted to the date of
termination at the rate of four percent (4%) per annum. If such premises or any
part thereof be relet by the Owner for the unexpired term of said lease, or any
part thereof, before presentation of proof of such liquidated damages to any
court, commission or tribunal, the amount of rent reserved upon such reletting
shall be deemed to be the fair and reasonable rental value for the part or the
whole of the premises so re-let during the term of the re-letting. Nothing
herein contained shall limit or prejudice the right of the Owner to prove for
and obtain as liquidated damages by reason of such termination, an amount equal
to the maximum allowed by any statute or rule of law in effect as the time when,
and governing the proceedings in which, such damages are to be proved, whether
or not such amount be greater, equal to, or less than the amount of the
difference referred to above.

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     17. (1) If Tenant defaults in fulfilling any of the covenants of this Lease
other than the covenants for the payment of rent or additional rent: Anything
contained herein to the contrary notwithstanding. Owner shall give Tenant two
five (5) day notices in any twelve consecutive month period of Tenant's failure
to pay rent or Additional Rent; "or if this lease be rejected under ss.235 of
Title 11 of the U.S. Code (bankruptcy code);" or if any execution or attachment
shall be issued against Tenant or any of Tenant's property whereupon the demised
premises shall be taken or occupied by someone other than Tenant; or if Tenant
shall make default with respect to any other lease between Owner and Tenant; or
if Tenant shall have failed after five (5) days written notice, to redeposit
with Owner any portion of the security deposited hereunder which Owner has
applied to the payment of any rent and additional rent due and payable
hereunder; then in any one or more of such events upon Owner serving a written
fifteen (15) days notice upon Tenant specifying the nature of said default and
upon the aspiration of said fifteen (15) days, if Tenant shall have failed to
comply with or remedy such default, or if the said default or omissions
complained or shall be of a nature that the same cannot be completely cured or
remedied within said fifteen (15) day period, and if Tenant shall not have
diligently commenced during such default within such fifteen (15) day period,
and shall not thereafter with reasonable diligence and in good faith, proceed to
remedy or cure such default, then Owner may serve a written five (5) days'
notice of cancellation of this lease upon Tenant, and upon the expiration of
said five (5) days this lease and the term thereunder shall end and expire as
fully and completely as if the expiration of such five (5) day period were the
day herein definitely fixed for the end and expiration of this lease and the
term thereof and Tenant shall then quit and surrender the demised premises to
Owner but Tenant shall remain liable as hereinafter provided.

         (2) If the  notice provided for in (1) hereof shall have been given,
and the term shall expire as aforesaid: or if Tenant shall make default in the
payment of the rent reserved herein or any item of additional rent herein
mentioned or any part of either or in making any other payment herein required:
then and in any of such events Owner may without notice, re-enter the demised
premises either by force or otherwise, and dispossess Tenant by summary
proceedings or otherwise, and the legal representative of Tenant or other
occupant of demised premises and remove their effects and hold the premises as
if this lease had never been made, and Tenant hereby waives the service of
source of intention; re-enter or to institute legal proceedings to that end. If
Tenant shall make default hereunder prior to the date fixed as the commencement
of an renewal or extension of this lease, Owner may cancel and terminate such
renewal or extension agreement by written notice.

Remedies of Owner and Waiver of Redemption:

     18. In case of any such default, re-entry, expiration and/or dispossess by
summary proceedings or otherwise, (a) the rent, and additional rent, shall
become due thereupon and be paid up to the time of such re-entry, dispossess
and/or expiration, (b) Owner may re-let the premises or any part or parts
thereof, either in the name of Owner; otherwise, for a term or terms, which may
at Owner's option be less than or exceed the period which would otherwise have
constituted the balance of the term of this lease and may grant concessions or
free rent or charge higher rental than that in this lease, (c) Tenant or the
legal representative of Tenant shall also pay Owner as liquidated damages for
the failure of Tenant to observe and perform said Tenant's convenants herein
contained, any deficiency between the rent hereby reserved and covenanted to be
paid and the net amount, if any, of the rents collected on account of the
subsequent lease or leases of the demised premises for each month of the period
which would otherwise have constituted the balance of the term of this lease.
The failure of Owner to re-let the premises or any part or parts thereof shall
not release or affect Tenant's liability for damages. Computing such liquidated
damages there shall be added to the said deficiency such expenses as Owner may
incur in connection with re-letting, such as legal expenses, attorneys' fees,
brokerage, advertising and for keeping the demised premises in good order or for
prepaing the same for re-letting. Any such liquidated damages shall be paid in
monthly installments by Tenant on the rent day specified in this lease and any
suit brought to collect the amounts of the deficiency for any month shall be
prejudice in any way the rights of Owner to collect the deficiency for any
subsequent month by a similar proceeding. Owner, in putting the demised premises
in good order or preparing the same for re-rental may, at Owner's option, make
such alterations, repairs, replacements, and/or decorations in the demised
premises as Owner, in Owner's sole judgment, considers advisable and necessary
for the purpose of re-letting demised premises, and the making of such
alterations, repairs, replacements and/or decorations shall not operate or be
construed to release Tenant from liability hereunder as aforesaid. Owner shall
in no event be liable in any way whatsoever for failure to re-let the demised
premises, or in the event that the demised premises are re-let, for failure to
collect the rent thereof under such re-letting, and in no event shall Tenant be
entitled to receive any excess. If any, of such net rents collected over the
sums payable by Tenant to Owner hereunder. In the event of a breach or
threatened breach by Tenant of any of the covenants or provisions hereof, Owner
shall have the right of injunction and the right to invoke any remedy allowed at
law or in equity as if re-entry, summary proceedings and other remedies were not
herein provided for. Mention in the lease of any particular remedy, shall not
preclude Owner from any other remedy, in law or in equity, Tenant hereby
expressly waives any and all rights of redemption granted by or under any
present or future laws.

<PAGE>

Fees and Expenses:

     19. If Tenant shall default in the observance or performance of any term or
covenant on Tenant's part to be observed or performed under or by virtue of any
of the terms or provisions in any article of this lease, after notice if
required and upon expiration of any applicable grace period if any (except in an
emergency), then, unless otherwise provided elsewhere in this lease, Owner may
immediately or at any time thereafter and without notice perform the obligation
of Tenant thereunder. If Owner, in connection with the foregoing or in
connection with any default by Tenant in the covenant to pay rent hereunder,
makes any expenditures or incurs any obligations for the payment of money,
including but not limited to attorney's fees, in instituting, prosecuting or
defending any action or proceedings, and prevails in any such action or
proceeding, then Tenant will reimburse Owner for such sums so paid or
obligations incurred with interest and costs. The foregoing expenses incurred by
reason of Tenant's default shall be deemed to be additional rent hereunder and
shall be paid by Tenant to Owner within ten (10) days of rendition of any bill
or statement to Tenant therefor. If the Tenant's lease term shall have expired
at the time of making of such expenditures or incurring of such obligations,
such sums shall be recoverable by Owner as damages.

Building Alterations and Management:

     20. Owner shall have the right at any time without the same constituting an
eviction and without incurring liability to Tenant therefor to change the
arrangement and or location of public entrances, passageways, doors, doorways,
corridors, elevators, stairs, toilets or other public parts of the building and
to change the name, number of designation by which the building may be known.
There shall be no allowance to Tenant for diminution of rental value and no
liability on the part of Owner by reason of inconvenience, annoyance or injury
to business arising from Owner or other Tenant making any repairs in the
building or any such alterations, additions and improvements. Furthermore,
Tenant shall not have any claim against Owner by reason of Owner's imposition of
any controls of the manner of access to the building by Tenant's social or
business visitors as the Owner may deem reasonably necessary for the security of
the building and its occupants.

No Representations by Owner:

     21. Neither Owner nor Owner's agents have made any representations or
promises with respect to the physical condition of the building, the land upon
which it is erected or the demised premises, the rents, leases, expenses of
operation or any other matter or thing affecting or related to the demised
premises or the building except as herein expressly set forth and no rights,
easements or licenses are acquired by Tenant by implication or otherwise except
as expressly set forth in the provisions of this lease. Tenant has inspected the
building and the demised premises and is thoroughly acquainted with their
condition and agrees to take the same "as is" on the date possession is tendered
and acknowledges that the taking of possession of the demised premises by Tenant
shall be conclusive evidence that the said premises and the building of which
the same form a part were in good and satisfactory condition at the time such
possession was so taken, except as to latent defects. All understandings and
agreements heretofore made between the parties hereto are merged in this
contract, which alone fully and completely expresses the agreement between Owner
and Tenant and any executory agreement hereafter made shall be ineffective to

<PAGE>
change, modify, discharges or effect an abandonment of it in whole or in part,
unless such executory agreement is in writing and signed by the party against
whom enforcement of the change, modification, discharge or abandonment is
sought.

End of Term:

     22. Upon the expiration or other termination of the term of this lease.
Tenant shall quit and surrender to Owner the demised premises, broom clean, in
good order and condition, ordinary wear and damages which Tenant is not required
to repair as provided elsewhere in this lease excepted, and Tenant shall remove
all its property from the demised premises. Tenant's obligation to observe or
perform this covenant shall survive the expiration or other termination of this
lease. If the last day of the term of this Lease or any renewal thereof, falls
on Sunday, this lease shall expire at noon on the preceding Saturday unless it
be a legal holiday in which case it shall expire at noon on the preceding
business day.

Quiet Enjoyment:

     23. Owner covenants and agrees with Tenant that upon Tenant paying the rent
and additional rent and observing and performing all the terms, covenants and
conditions, on Tenant's part to be observed and performed, Tenant may peaceably
and quietly enjoy the premises hereby demised, subject nevertheless, to the
terms and condtions of this lease including, but not limited to, Article 34
hereof and to the ground leases, underlying leases and mortgages hereinbefore
mentioned.

Failure to Give Possession:

     24. If Owner is unable to give possession of the demised premises on the
date of the commencement of the term hereof, because of the holding-over or
retention of possession of any tenant, undertenant or occupants or if the
demised premises are located in a building being constructed, because such
building has not been sufficiently completed to make the premises ready for
occupancy or because of the fact that a certificate of occupancy has not been
procured or if Owner has not completed any work required to be performed by
Owner, or for any other reason. Owner shall not be subject to any liability for
failure to give possession on said date and the validity of the lease shall not
be impaired under such circumstances, nor shall the same be construed in any
wise to extent the term of this lease, but the rent payable hereunder shall be
abated (provided Tenant is not responsible for Owner's inability to obtain
possession or complete any work required) until after Owner shall have given
Tenant notice that the premises are substantially ready for Tenant's occupancy.
If permission is given to Tenant to enter into the possession of the demised
premises or to occupy premises other than the demised premises prior to the date
specified as the commencement of the term of this lease. Tenant covenants and
agrees that such possession and/or occupancy shall be deemed to be under all the
terms, covenants, conditions and provisions of this lease, except the obligation
to pay the fixed annual rent set forth in page one of this lease. The provisions
of this article are intended to continue "an express provision to the contrary"
within the meaning of Section 223-a of the New York Real Property Law.

No Waiver:

     25. The failure of Owner to seek redress for violation of, or to insist
upon the strict performance of any covenant or condition of this lease or of any
of the Rules or Regulations, set forth or hereafter adopted by Owner, shall not
prevent a subsequent act which would have originally constituted a violation
from having all the force and effect of an original violation. The receipt by
Owner of rent with knowledge of the breach of any covenant of this lease shall
not be deemed a waiver of such breach and no provision of this lease shall be
deemed to have been waived by Owner unless such waiver be in writing signed by
Owner. No payment by Tenant or receipt by Owner of a lesser amount than the
monthly rent herein stipulated shall be deemed to be other than an account of
the earliest stipulated rent, nor shall any endorsement or statement of any
check or any letter accompanying any check or payment as rent be deemed an
accord and satisfaction, and Owner may accept such check or payment without
prejudice to Owner's right to recover the balance of such rent or pursue any
other remedy in his lease provided. All checks tendered to Owner as and for the
rent of the demised premises shall be deemed payments for the account of Tenant.
Acceptance by Owner of rent from anyone other than Tenant shall not be deemed to
operate as an attornment to Owner by the payor of such rent or as a consent by
Owner to an assignment or subletting by Tenant of the demised premises to such
payor, or as a modification of the provisions of this lease. No act or thing
done by Owner or Owner's agents during the term hereby demised shall be deemed
an acceptance of a surrender of said premises and no agreement to accept such
surrender shall be valid unless in writing signed by Owner. No employee of Owner
or Owner's agent shall have any power to accept the keys of said premises prior
to the termination of the lease and the delivery of keys to any such agent or
employee shall not operate as a termination of the lease or a surrender of the
premises.

<PAGE>

Waiver of Trial by Jury:

     26. It is mutually agreed by and between Owner and Tenant that the
respective parties hereto shall and they hereby do waive trial by jury in any
action, proceeding or counterclaim brought by either of the parties hereto
against the other (except for personal injury or property damage) on any matters
whatsoever arising out of or in any way connected with this lease, the
relationship of Owner and Tenant, Tenant's use of or occupancy of said premises,
and any emergency statutory or any other statutory remedy. It is further
mutually agreed that in the event Owner commences any proceeding or action for
possession including a summary proceeding for possession of the premises. Tenant
will not interpose any counterclaim of whatever nature or description in any
such proceeding including a counterclaim under Article 4 except for statutory
mandatory counterclaims.

Inability to Perform:

     27. This Lease and the obligation of Tenant to pay rent hereunder and
perform all of the other covenants and agreements hereunder on part of Tenant to
be performed shall in no wise be affected, impaired or excused because Owner is
unable to fulfill any of its obligations under this lease or to supply or is
delayed in supplying any service expressly or impliedly to be supplied or is
unable to make, or is delayed in making any repair, additions, alterations or
decorations or is unable to supply or is delayed in supplying any equipment or
fixtures if Owner is prevented or delayed from so doing by reason of strike or
labor troubles or any cause whatsoever beyond Owner's sole control including,
but not limited to, government preemption or restrictions or by reason of any
rule, order or regulation of any department or subdivision thereof of any
government agency or by reason of the conditions which have been or are
affected, either directly or indirectly by war or other emergency.

Bills and Notices:

     28. Except as otherwise in this lease provided, a bill statement, notice of
communication which Owner may desire or be required to give to Tenant, shall be
deemed sufficiently given or rendered, in writing, or sent by registered or
certified mail or recognized overnight courier, next day service addressed to
Tenant at the building of which the demised premises form a part and the time of
the rendition of such bill or statement and of the giving of such notice or
communication shall be deemed to be the time when the same is delivered to
Tenant. Any notice by Tenant to Owner must be served by registered or certified
mail shall be addressed to Owner at the address first hereinabove given or at
such other address as Owner shall designate by written notice.

Water Charges:

    29. If Tenant requires, uses or consumes water for any purpose in addition
to ordinary lavatory purpose (of which fact Tenant constitutes Owner to be the
the sole judge) Owner may install a water meter and thereby measure Tenant's
water consumption for all purposes. Tenant shall pay Owner for the cost of the
meter and the cost of the installation, thereof and throughout the duration of
Tenant's occupancy Tenant shall keep said meter and installation equipment
in good working order and repair at Tenant's own cost and expense in default of
which Owner may cause such meter and equipment to be replaced or repaired and
collect the cost thereof from Tenant, as additional rent. Tenant agrees to pay
for water consumed, as shown on said meter as and when bills are rendered, and
on default in making such payment Owner may pay such charges and collect the
same from Tenant, as additional rent. Tenant covenants and agrees to pay, as
additional rent, the sewer rent, charge or any other tax, rent, levy or charge
which now or hereafter is assessed, imposed or a lien upon the demised premises
or the realty of which they are part pursuant to law, order or regulation made
or issued in connection with the use, consumption, maintenance or supply of
water, water system or sewage or sewage connection or system. If the building or
the demised premises or any part thereof is supplied with water through a meter
through which water is also supplied to other premises Tenant shall pay to
Owner, an additional rent, on the first day of each month, ____% ($100.00) of
the total meter charges as Tenant's portion. Independently of and in addition to
any of the remedies reserved to Owner hereinabove or elsewhere in this lease.
Owner may sue for and collect any monies to be paid by Tenant or paid by Owner
for any of the reasons or purposes hereinabove set forth.

Sprinklers:

     30. Anything elsewhere in this lease to the contrary so notwithstanding, if
the New York Board of Fire Underwriters or the New York Fire Insurance Exchange
or any bureau, department or official of the federal, state or city government
recommend or require the installation of a sprinkler system or that any changes,
modifications, alterations, or additional sprinkler heads or other equipment be
made or supplied in an existing sprinkler system by reason of Tenant's business,
or the location of partitions, trade fixtures, or other contents of the demised

<PAGE>

premises, or for any other reason, or if any such sprinkler system
installations, modification, alterations, additional sprinkler heads or other
such equipment, become necessary to prevent the imposition of a penalty or
charge against the full allowance for a sprinkler system in the fire insurance
rate set by any said Exchange or by any fire insurance company, Tenant shall, at
Tenant's expense, promptly make such sprinkler system installations, changes
modifications, alterations and supply additional sprinkler heads or other
equipment as required whether the work involved shall be structural or
non-structural in nature. Tenant shall pay to Owner as additional rent the sum
of $100.00, on the first day of each month during the term of the lease, as
Tenant's portion of the contract price for sprinkler supervisory service.

Elevators, Heat, Cleaning:

     31. Owner shall: (a) provide necessary passenger elevator facilities on
business days from 8 a.m. to 6 p.m. and on Saturdays from 8 a.m. to 1 p.m.: (b)
if freight elevator service is provided, same shall be provided only on regular
business days Monday through Friday inclusive, and on those days only
between the hours of 9 a.m. and 12 noon and between 1 p.m. and 5 p.m.;
(c) furnish heat, water and other services supplied by Owner to the demised
premises, when and as required by law, on business days from 8 a.m. to 6 p.m.
and on Saturdays from 8 a.m. to 1 p.m.; (d) clean the public halls and public
portions of the building which are used in common by all tenants. Tenant shall,
at Tenant's expense, keep the demised premises, including the windows, clean and
in order, to the satisfaction of Owner, and for that purpose shall employ the
person or persons, or corporation approved by Owner. Tenant shall pay to Owner
the cost of removal of any to Tenant's refuse and rubbish from the building.
Bills for the same shall be rendered by Owner to Tenant at such time as Owner
may elect and shall be due and payable hereunder, and the amount of such bills
shall be deemed to be, and be paid as additional rent. Tenant shall, however,
have the option of independently contracting for the removal of such rubbish and
refuse in the event that Tenant does not wish to have same done by employees of
Owner. Under such circumstances, however, the removal of such refuse and rubbish
by others shall be subject to such rules and regulations as, in the judgment of
Owner, are necessary for the proper operation of the building. Owner reserves
the right to stop service of the heating, elevator, plumbing and
electricsystems, when necessary, by reason of accident, or emergency, or for
repairs, alterations, replacements or improvements, in the judgment of Owner
desirable or necessary to be made, until said repairs, alterations, replacements
or improvements shall have been completed. If the building of which the demised
premises are a part supplies annually operated elevator services, Owner may
proceed diligently with alterations necessary to substitute automatic control
elevator service without in any way affecting the obligations of Tenant
hereunder.

<PAGE>

Security:

         32. Tenant has deposited with Owner the sum of $88,000.00 as security
for the faithful performance and observance by Tenant of the terms, provisions
and conditions of this lease; it is agreed that in the event Tenant defaults in
respect of any of the terms, provisions and conditions of this lease, including,
but not limited to, the payment of rent and additional rent, Owner may use,
apply or retain the whole or any part of the security so deposited to the extent
required for the payment of any rent and additional rent or any other sum as to
which tenant is in default or for any sum which Owner may expend or may be
required to expend by reason of Tenant's default in respect of any of the terms,
covenants and conditions of this lease, including but not limited to, any
damages or deficiency in the reletting of the premises, whether such damages or
deficiency accrued before or after summary proceedings or other re-entry by
Owner. In the event that Tenant shall fully and faithfully comply with all of
the terms, provisions, covenants and conditions of this lease, the security
shall be returned to Tenant after the date fixed as the end of the Lease and
after delivery of entire possession of the demised premises to Owner. In the
event of a sale of the land and building or leasing of the building, of which
the demised premises form a part, Owner shall transfer the security to the
vender or lessee and Owner shall thereupon be released by Tenant from all
liability for the return of such security; and Tenant agrees to look to the new
Owner solely for the return of said security, and it is agreed that the
provisions hereof shall apply to every transfer or assignment made of the
security to a new Owner. Tenant further convenants that it will not assign or
encumber or attempt to assign or encumber the monies deposited herein as
security and that neither Owner nor its successors or assigns shall be bound by
any such assignment, encumbrance, attempted assignment or attempted encumbrance.
See Articles 79 and 83 hereof.

Captions:

         33. The Captions are inserted only as a matter of convenience and for
reference and in no way define, limit or describe the scope of this lease nor
the intent of any provision thereof.

Definitions:

         34. The term "Owner" as used in this lease means only the owner of the
fee or of the leasehold of the building, or the mortgages in possession, for the
time being of the land and building (or the owner of a lease of the building or
of the land and building) of which the demised premises form a part, so that in
the event of any sale or sales of said land and building or of said lease, or in
the event of a lease of said building, or of the land and building, the said
Owner shall be and hereby is entirely freed and relieved of all covenants and
obligations of Owner hereunder, and it shall be deemed and construed without
further agreement between the parties or their successors in interest, or
between the parties and the purchaser, at any such sale, or the said lessee of
the building, or of the land and building, that the purchaser or the lessee of
the building has assumed and agreed to carry out any and all covenants and
obligations of Owner hereunder. The words "re-enter" and "re-entry" as used in
this lease are not restricted to their technical legal meaning. The term "rent"
includes the annual rental rate whether so-expressed or expressed in monthly
installments, and "additional rent," "Additional rent" means all sums which
shall be due to new Owner from Tenant under this lease, in addition to the
annual rental rate. The term "business days" as used in this lease, shall
exclude Saturdays (except such portion thereof as is covered by specific hours
in Article 31 hereof), Sundays and all days observed by the State or Federal
Government as legal holidays and those designated as holidays by the applicable
building service union employees service contract or by the applicable Operating
Engineers contract with respect to HVAC service. Whenever it is expressly
provided in this lease that consent shall not be unreasonably withheld, such
consent shall not be unreasonably delayed.

Adjacent Excavations Shoring:

         35. If an excavation shall be made upon land adjacent to the demised
premises, or shall be authorized to be made, Tenant shall afford to the person
causing or authorized to cause such excavation, license to enter upon the
demised premises for the purpose of doing such work as said person shall deem
necessary to preserve the wall or the building of which demised premises form a
part from injury or damage and to support the same by proper foundations without
any claim for damages or indemnity against Owner, or diminution or abatement of
rent.

<PAGE>

Rules and Regulations:

         36. Tenant and Tenant's servants, employees, agents, visitors, and
licensees shall observe, and comply with, the Rules and Regulations annexed
hereto and such other and further reasonable Rules and Regulations as Owner or
Owner's agents may from time to time adopt. Notice of any additional rules or
regulations shall be given in such manner as Owner may elect. In case Tenant
disputes the reasonableness of any additions, Rule or Regulation hereafter made
or adopted by Owner or Owner's agents, the parties hereto agree to submit the
question of the reasonableness of such Rule or Regulation for decision to the
New York office of the American Arbitration Association, whose determination
shall be fact and conclusive upon the parties hereto. The right to dispute the
reasonableness of any additional Rule or Regulation upon Tenant's part shall be
deemed waived unless the same shall be asserted by service of a notice, in
writing upon Owner within fifteen (15) days after the giving of notice thereof.
Nothing in this lease contained shall be construed to impose upon Owner any duty
or obligation to enforce the Rules and Regulations or terms, covenants or
conditions in any other lease, as against any other tenant and Owner shall not
be liable to Tenant for violation of the same by any other tenant, its servants,
employees, agents, visitors or licensees.

Glass:

         37. Owner shall replace, at the expense of the Tenant, any and all
plate and other glass damaged or broken from any cause whatsoever in and about
the demised premises. Owner may insure, and keep insured, at Tenant's expense,
all plate and other glass in the demised premises for and in the name of Owner.
Bills for the premiums therefor shall be rendered by Owner to Tenant at such
times as Owner may elect, and shall be due from, and payable by, Tenants when
rendered, and the amount thereof shall be deemed to be, and be paid, as
additional rent.

Estoppel Certificates:

         38. Tenant, at any time, and from time to time, open at least ten (10)
days prior notice by Owner, shall execute, acknowledge and deliver to Owner,
and/or to any other person, firm or corporation specified by Owner, a statement
certifying that this Lease is unmodified in full force and effect (or, if there
have been modifications, that the same is in full force and effect as modified
and stating the modifications), stating the dates to which the rent and
additional rent have been paid, and stating whether or not there exists any
default by Owner under this Lease, and, if so, specifying each such default.

Directory Board Listing:

         39. If, at the request of and as accommodation to Tenant, Owner shall
place upon the directory board in the lobby of the building, one or more names
of persons other than Tenant, such directory board listing shall not be
construed as the consent by Owner to an assignment or subletting by Tenant to
such person or persons.

Successors and Assignee:

         40. The covenants, conditions and agreements contained in this lease
shall bind and inure to the benefit of Owner and Tenant and their respective
heirs, distributees, executors, administrators, successors, and except as
otherwise provided in this lease, their assigns. Tenant shall look only to
Owner's estate and interest in the land and building for the satisfaction of
Tenant's remedies for the collection of a judgement (or other judicial process)
against Owner in the event of any default by Owner hereunder, and no other
property or assets of such Owner (or any partner, member, officer or director
thereof, disclosed or undisclosed), shall be subject to levy, execution or other
enforcement procedure for the satisfaction of Tenant's remedies under or with
respect to this lease, the relationship of Owner and Tenant hereunder, or
Tenant's use and occupancy of the demised premises.

<PAGE>

SEE RIDER ATTACHED HERETO AND MADE A PART HEREOF.

         In Witness Whereof, Owner and Tenant have respectively signed and
sealed this lease as of the day and year first above written.

Witness for Owner:                           PENNBUS REALTIES, INC.   CORP. SEAL
                                             ------------------------

                                              /s/  [illegible]
------------------------------               --------------------------- [L.S.]
                                               Vice President
                                                                        CORP.
Witness for Tenant:                          FORMAN INTERACTIVE CORP.   SEAL
                                             ------------------------

------------------------------               --------------------------- [L.S.]

                                             By: /s/ [illegible]
                                             --------------------------------
                                                 President

                                ACKNOWLEDGMENTS

<TABLE>
<CAPTION>
<S>                                                                             <C>
CORPORATE TENANT                                                                INDIVIDUAL TENANT
STATE OF NEW YORK,       ss.                                                    STATE OF NEW YORK,       ss.
County of                                                                       County of

      On this         day of              , 19        , before me                     On this         day of              , 19
personally came           .                                                       , before me personally came           .

to me known, who being by me duly sworn, did depose and say that he resides     To me known and known to me to be the individual
in                                                                              described in and who, as TENANT, executed the
                                                                                foregoing instrument and acknowledged to me that
that he is the                      of                                                                         he executed the same.

the corporation described is and which executed the foregoing instrument, as                    -------------------------------
TENANT: that he knows the seal of said corporation: that the seal affixed to
said instruments is such corporate seal that it was so affixed by the Board of
Directors of said corporation, and that he signed his name thereto by like
order.

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

<PAGE>

                            IMPORTANT -- PLEASE READ

                      RULES AND REGULATIONS ATTACHED TO AND
                           MADE A PART OF THIS LEASE
                         IN ACCORDANCE WITH ARTICLE 36.

     1. The sidewalks, entrances, driveways, passages, courts, elevators,
vestibules, stairways, corridors or halls shall not be obstructed or encumbered
by any Tenant or used for any purpose either than for [Illegible] or egress from
the demised premises and for delivery of merchandise and equipment in a prompt
and efficient manner using elevators and passageways designated for such
delivery by Owner. There shall not be used in any space, or in the public hall
of the building, either by any Tenant or by jobbers or others in the delivery or
receipt of merchandise, any hand trucks, except those equipped with rubber tires
and sideguards.

     2. The water and wash closets and plumbing fixtures shall not be used for
any purposes other then those for which they were designed or constructed and no
sweepings, rubbish, rags, acids or other substances shall be deposited therein,
and the expenses of any breakage, storage, or damage resulting from the
violation of this rule shall be borne by the Tenant who, or whose clerks,
agents, employees or visitors, shall have caused it.

     3. No carpet, rug or other article shall be hung or shaken out of any
window of the building: and no Tenant shall sweep or throw or permit to be swept
or thrown from the demised premises any dirt or other substances into any of the
corridors or halls, elevators, or out of the doors or windows or stairways of
the building and Tenant shall not use, keep or permit to be used or kept any
foul or noxious gas or substance in the demised premises, or permit or suffer
the demised premises to be occupied or used in a manner offensive or
objectionable to Owner or other occupants of the buildings by reasons of noise,
odors, and or vibrations, or interfere in any way, with other Tenants or those
having business therein, nor shall any animals or birds be kept in or about the
building. Smoking or carrying lighted cigars or cigarettes in the elevators of
the building is prohibited.

     4. No awnings or other projections shall be attached to the outside walls
of the building without the prior written consent of Owner.

     5. No sign, advertisements, notice or other lettering shall be exhibited,
inscribed, painted or affixed by any Tenent on any part of the outside of the
demised premises or the building or on the inside of the demised premises if the
same is visable from the outside of the premises without the prior written
consent of Owner, except that the name of Tenant may appear on the entrance door
of the premises. In the event of the violation of the foregoing by any Tenant,
Owner may remove same without any liability and may charge the expense incurred
by such removal to Tenant or Tenants violating rule. Interior signs on doors and
directory tables shall be inscribed, painted or affixed for each Tenant by Owner
at the expense of such Tenant, and shall be of a size, color and style
reasonably acceptable to Owner.

<PAGE>

     6.  No boring, cutting or stringing of wires shall be permitted, exept
with the prior written consent of Owner and as Owner may direct. No Tenant shall
lay linoleum, or other similar floor covering, so that the same shall come in
direct contact with the floor of the demised premises, and, if linoleum or other
similar floor covering is desired to be used as [illegible] of builder's
deadening felt shall be first affixed to the floor, by a [illegible] other
material, solubable in water, the use of cement or other similar adhesive
matters being expressly prohibited.

     7. Each Tenant must, upon the termination of his Tenancy,return to Owner
all keys of stairs, offices and toilet rooms, either furnished to, otherwise
procured by, such Tenant, and in the event of the loss of any keys, so
furnished, such Tenant shall pay to Owner the cost thereof.

     8. Freight, furniture, business equipment, merchandise and bulky matter of
any description shall be delivered to and removed from the premises only on the
freight elevators and through the service entrances and corridors, and only
during hours and in a manner reasonably approved by Owner. Owner reserves the
right to inspect all freight to be brought into the building and to exclude from
the building all freight which violates any of these Rules and Regulations of
the lease of which these Rules and Regulations are a part.

     9. No Tenant shall obtain for use upon the demised premises for, drinking
water, towel and other similar services, or accept barbering or bootblacking
services in the demised premises, except from persons authorized by Owner, and
at hours and under regulations fixed by Owner. Canvassing solicitiong and
peddling in the building is prohibited and each Tenant shall cooperate to
prevent the same.

     10. Owner reserves the right to exclude from the building between the hours
of 6 p.m. and 8 a.m. on business days, after 1 p.m. on Saturdays, and at all
hours on Sundays and legal holidays all persons who do not present a pass to the
building signed by Owner. Owner will furnish passes to persons for whom any
Tenant requests same in writing. Each Tenant shall be responsible for all
persons for whom he requests such pass and shall be liable to Owner for all acts
of such persons. Notwithstanding the foregoing, Owner shall not be required to
allow Tenant or any person to enter or remain in the building, except on
business days from 8:00am to 6: p.m. and on Saturdays from 8:00 a.m. to 1:00
p.m. Tenant shall not have a claim against Owner by reason of Owner excluding
from the building any person who does not present such pass.

     11. Owner shall have the rights to prohibit any advertising by any Tenant
which in the Owner's reasonable opinion, leads to impair the reputation of the
building or its desirability as a loft building, and upon written notice from
Owner, Tenant shall refraim from or discontinue such advertising.

     12. Tenant shall not bring or permit to be brought or kept in or on the
demised premises, any inflammable, conbustible or explosive fluid, material,
chemical or substance, or cause or permit any odors of cooking or other
processess, or any unusual or other objectionable odors to permeate in or
enamates from the demised premises.

     13. Tenant shall not use the demised premises in a manner which disturbs or
interferes with other Tenants in the beneficial use of their premises.

<PAGE>

                      Address   575 Eighth Avenue
                      Premises  Entire Eleventh (11th) Floor
             ============================================================

                            PENNBUS REALTIES, INC.

                                       TO

                             FORMAN INSTITUTE CORP.
             ============================================================

                                STANDARD FORM OF
                                   LOFT LEASE

                     The Real Estate Board of New York, Inc.
                     (C)Copyright 1994. All rights Reserved.
                  Reproduction in whole or in part prohibited.

             ============================================================

             Dated  March 1999.

             Rent Per Year  See Clause 41(a)(i)

             Rent Per Month See Clause 41(a)(i)

             Term  Ten (10) Years, Six and one half (6-1/2) months
             From  March 15, 1999 half (6-1/2)
             To    September 30, 2009 months

             Drawn by _______________________ Checked by_________________

             Entered by _____________________ Approved by________________

             ============================================================

<PAGE>
RIDER AGREEMENT:

To be attached to and form a part of:

LEASE dated January, 1999 Premises Entire 11th Floor at 575 Eighth Avenue
Between PENNBUS REALTIES, INC., c/o Olmstead Properties, Inc. as Landlord
and FORMAN INTERACTIVE CORP. as Tenant

At the commencement of the term hereof electric current shall be supplied to
Tenant at the demised premises in accordance with the provisions of clause A or
B or F of this Article, subject to the other terms and conditions of this
Article and lease. A. Submetering -- If electric current be supplied by
Landlord, at Landlord's option, pursuant to this clause, Tenant covenants and
agrees to purchase the same from Landlord or Landlord's designated agent, at
charges, taxes, terms and rates set by Landlord from time to time but, except as
hereinafter set forth, nor more than those specified in Service Classification
No. 4 on September 7, 1970, that being the date immediately prior to which the
rates of Consolidated Edison Company of New York, Inc. were adjusted and
consolidated with respect to redistribution of electric current to commercial
buildings. Such charges, taxes, terms and rates may be revised by Landlord, at
its option, from time to time, in the same proportion as any increases after the
aforesaid date in the charges, taxes, terms or rates to Landlord in connection
with the supply of electric current to the building of which the demised
premises are a part (hereinafter referred to as the "building"). When more than
one meter measures the electrical service to the demised premises, the service
rendered through each meter shall be separately computed and billed in
accordance with the charges, taxes, terms and rates stated herein. Bills shall
be rendered at such times as Landlord may elect and, commencing on the earlier
of (i) Tenant's occupancy of all or any portion of the demised premises, or (ii)
the commencement date of the term of this lease, the amounts as computed from
meter readings shall be deemed to be, and be paid as, additional rent without
set-off or deduction. B. Rent Inclusion -- If electric current be supplied by
Landlord, at Landlord's option, pursuant to this clause, Tenant covenants and
agrees to have it supplied to Tenant at the demise premises based on the method
of including the use thereof within the annual rent and the annual rent reserved
herein shall be increased as hereinafter set forth, in consideration of Landlord
supplying electric current as an additional service as hereinafter provided. At
any time after Tenant is in possession of the demised premises, a reputable
electrical consultant selected by Landlord shall (but, if this lease be a
renewal or shall subsequently be extended, or if an electric rent inclusion
modification agreement is being executed in connection with this lease, Landlord
shall have the option, but not the obligation to) make a survey of the
electrical equipment, usage and powerload to ascertain the electric current
consumption and demand in the demised premises on an annual basis, and calculate
the annual rent increase resulting therefrom utilizing charges, taxes, terms and
rates as set by Landlord from time to time, but, except as hereinafter set forth
not more than those specified in Service Classification No. 2 on September 7,
1970, that being the date immediately prior to which the rates of Consolidated
Edison Company of New York, Inc. were adjusted and consolidated with respect to
redistribution of electric current to commercial buildings. Such charges, taxes,
terms and rates may be revised by Landlord, at its option, from time to time, in
the same proportion as any increases after the aforesaid date in the charges,
taxes, terms or rates to Landlord in connection with the supply of electric
current to the building. Following the making of any such survey, the parties
shall execute an agreement prepared by Landlord amending this lease and setting
forth the increase in annual rent calculated as aforesaid, as of the date of the
commencement of the furnishing of electric current to the demised premises
pursuant to this clause B, but such increase shall be effective from that date
even if such agreement is not executed. Notwithstanding the foregoing, (i) if
this lease be a renewal, or shall subsequently be extended, in no event shall
the amount payable by Tenant in consideration of Landlord supplying electric
current be less than the amount by which the annual rent last payable by Tenant
under its prior lease, or this lease, was last increased in consideration of
Landlord supplying electric current to the demised premises, and (ii) if an
electric rent inclusion modification agreement is being executed in connection
with this lease, in no event shall the increase in the annual rent reserved
herein be less than the increase in annual rent as set forth therein. Landlord,
its agent or consultant, is given the right to make surveys, from time to time,
in the demised premises covering the electric equipment and use of electric
current. If, after the date of such initial survey (or if subdivision "(i)" or
"(ii)" above is applicable, after the date on which the annual rent payable by
Tenant was last increased in consideration of Landlord supplying electric
current to the demised premises) there are any additions to or increases in (i)
the equipment or usage in the demised premises, or (ii) in the charges, terms
and/or rates to Landlord by the public utility corporation supplying electric
current to the building, or (iii) in any taxes thereon which Landlord is

<PAGE>

obligated to pay, or (iv) if Tenant shall regularly remain open for business
other than during those hours incorporated in any prior electric survey, then,
and in any such instance or instances, the annual rent reserved herein shall be
further increased in accordance with the provisions of this Article to reflect
such additions, increases or additional use as of the effective date thereof. If
Landlord and Tenant cannot agree on the amount of any such increase, as
hereinbefore described, the same shall be determined by a reputable electric
consultant selected by Landlord and paid equally by both parties. The parties
shall then execute an agreement prepared by Landlord amending this lease and
setting forth the new annual rent resulting from such increase and confirming
the effective date thereof, but such increase shall be effective from such date
even if such agreement is not executed. C. Landlord shall not in any way be
liable or responsible to Tenant for any loss or damage or expense which Tenant
may sustain or incur if either the quantity or character of electric service is
changed or is no longer available or suitable for Tenant's requirements.
Tenant's use of electric current in the demised premises shall not at any time
exceed the capacity of any of the electrical conductors and facilities in or
otherwise serving the demised premises. In order to insure that such capacity is
not exceeded and to avert any possible adverse effect upon the building's
electric service, Tenant shall not, without Landlord's prior written consent in
each instance, connect any fixtures, appliances or equipment (other than a
reasonable number of table or floor lamps, typewriters and similar small office
machines using comparable electric current) to the building's electric
distribution system nor make any alteration or addition to the electric system
of the demised premises. Should Landlord grant such consent, all additional
risers or other equipment required therefor shall be provided by Landlord, and
all costs and expenses in connection therewith, including, without limitation,
those for filing and supervision, shall be paid by Tenant upon Landlord's
demand, as additional rent, without setoff or deduction. As a condition to
granting such consent, Landlord may require Tenant to agree to an increase in
the annual rent by an amount which will reflect the value to Tenant of the
additional service to be furnished by Landlord, to wit: the potential additional
electric current to be made available to Tenant based upon the estimated initial
total capacity of such additional risers or other equipment. If Landlord and
Tenant cannot agree on the amount of such annual rent increase, the same shall
be determined by a reputable electrical consultant, to be selected by Landlord
an paid equally by both parties. The parties shall then execute an agreement
prepared by Landlord amending this lease setting forth the new annual rent
resulting from such increase and confirming the effective date thereof, but such
increase shall be effective from such date even if such agreement is not
executed. D. In all matters relating to an annual rent increase and additional
rent pursuant to this Article the findings of the electrical consultant selected
by Landlord shall be conclusive and binding upon the parties. E. Landlord
reserves the right to discontinue furnishing electric current to Tenant in the
demised premises at any time upon not less than thirty (30) days' notice to
Tenant. F. If Landlord, at Landlord's option, (i) exercises such right of
discontinuance as provided in clause E, or (ii) requires Tenant to initially
obtain its electric current directly from the public utility corporation
supplying electric current to the building, this lease shall continue in full
force and effect and shall be unaffected thereby, except only that, from and
after the effective date of such discontinuance, or the commencement of direct
usage, as the case may be, Landlord shall not be obligated to furnish electric
current to Tenant and except that, if Landlord shall have been furnishing
electric current on a rent inclusion basis, from and after the effective date of
such discontinuance, the annual rent payable under this lease shall be reduced
by an amount equal to the aggregate amount of all increases of the annual rent
reserved herein pursuant to clause B of this Article. In either aforesaid event.
If Landlord is not to furnish electric current to Tenant, Tenant shall arrange
to obtain electric current directly from the public utility corporation
supplying electric current to the building; and in any event, all risers,
equipment and other facilities which may be required for Tenant to obtain
electric current directly from such public utility corporation shall, at
Tenant's expense, payable to Landlord upon demand, as additional rent, without
set-off or deduction, be installed by Landlord, if in Landlord's judgment the
same are necessary and will not cause damage or injury to the building or any
part thereof or create a hazardous condition or entail excessive alterations,
repairs or expense or interfere with or disturb any other building tenants or
occupants; and in any event, any such installation shall be maintained by
Tenant, at its expense, and shall be subject to such conditions as Landlord
and/or the public utility corporation may require. If Landlord shall not furnish
electric current to Tenant, it shall not be liable to Tenant therefor and the
same shall not be deemed to be a lessening or diminution of services within the
meaning of any law, rule or regulation now or hereafter enacted, promulgated or
issued. G. If any taxes or charges are or shall be imposed upon Landlord or its
agent in connection with the sale or resale of electrical energy to Tenant,
Tenant covenants and agrees that, where permitted by law, Tenant's pro-rata
share of such taxes or charges shall be passed on to Tenant and paid by Tenant
to Landlord or its agent upon demand, as additional rent, without set-off or
deduction. At all times during the term of this lease Tenant will comply with
all present and future General Rules, Regulations, Terms and Conditions
applicable to service equipment, wiring and Requirements in accordance with the
regulations of the public utility corporation supplying electric current to the
building. I. Tenant covenants and agrees that at no time will the connected
electrical load for any one full or partial floor of the demised premises exceed
6 watts per square foot of usable area unless the rent has been increased
pursuant to this Article to reflect the additional load. J. It is agreed that
Landlord, from time to time, may change the method of supplying electric current
to Tenant at the demised premises in any manner referred to in this lease or
otherwise, provided that in so doing Landlord shall comply with all applicable
laws.

<PAGE>

Notwithstanding anything to the contrary herein, Tenant shall be charged for
electricity consumed by it for the demised premises based upon submeter readings
applied to the then current Service Classification, billed by the Utility
Company servicing the property, which is commensurable with Tenant's level of
usage, (including all taxes, charges, terms, rates and other fees associated
with landlord providing electrical service) plus twelve and one-half percent
(12.5%). Such taxes, charges, terms and rates may be revised by the Utility
Company servicing the building, from time to time, and any changes after the
aforesaid date in the taxes, charges, terms and rates to Landlord in connection
with the supply of electric current to the Building of which the demised
premises are a part, will be used in the calculation of the Tenant billing.

Anything contained herein to the contrary notwithstanding, in no event shall
Landlord discontinue furnishing electric service to the Demised Premises unless
Landlord elects to do so to substantially all of the tenants in the Building.
Furthermore, as long as Tenant is proceeding diligently and in good faith to
obtain alternative electric service, Landlord shall not discontinue electric
service to the Demised Premises until such time as Tenant is receiving
alternative electric. To the extent the Building's risers, equipment and other
facilities are necessary and available for Tenant's use, Landlord shall make
same available to Tenant.

[FLOOR PLAN]

[graphic omitted]
<PAGE>

ADDITIONAL CLAUSES attached to and forming a part of Lease dated March 11, 1999
between PENNBUS REALTIES, INC., Landlord, c/o OLMSTEAD PROPERTIES, INC., Suite
2400, 575 Eighth Avenue, New York, NY 10018 and FOREMAN INTERACTIVE CORP.,
Tenant.

41.  BASIC PROVISIONS AND DEFINITIONS: This Article is an integral part of this
Lease and all of the terms hereof are incorporated into this Lease in all
respects, the following terms, whenever used in this Lease, shall have the
meanings set forth in this Article, and only such meanings unless expressly
contradicted, limited or expanded elsewhere in this Lease.

     (a) RENTAL: The payment reserved under this Lease for the term hereof shall
be and consist of the aggregate of:

         (i)  Minimum Rent, which shall be $160,000.00 per annum ($13,333.33 per
month) from March 15, 1999 to and including September 30, 2000; $164,800.00 per
annum ($13,733.33 per month) from October 1, 2000 to and including September 30,
2001; $169,744.00 per annum ($14,145.33 per month) from October 1, 2001 to and
including September 30, 2002; $174,836.32 per annum ($14,569.69 per month) from
October 1, 2002 to and including September 30, 2003; $180,081.41 per annum
($15,006.78 per month) from October 1, 2003 to and including September 30,
2004; $195,483.85 per annum ($16,290.32 per month) from October 1, 2004 to and
including September 30, 2005; $201,348.37 per annum ($16,779.03 per month) from
October 1, 2005 to and including September 30, 2006; $207,388.82 per annum
($17,282.40 per month) from October 1, 2006 to and including September 30, 2007;
$213,610.48 per annum ($17,800.87 per month) from October 1, 2007 to and
including September 30, 2008; and $22,018.80 per annum ($18,334.90 per month)
from October 1, 2008 to and including September 30, 2009.

         (ii) Additional Rent consisting of all such other sums of money shall
become due from and payable by Tenant to Landlord hereunder (for default in
payment of which Landlord shall have the same remedies as a default in payment
of Minimum Rent).

     (b) BASE TAX shall mean Taxes, as finally determined, for the fiscal period
of July 1, 1999 through June 30, 2000.

TENANT'S SHARE shall be 5.00%. The Tenant's Share shall be adjusted
proportionately in accordance with an increase or decrease in the gross leasable
area of the Building resulting from casualty or construction.

     (c) INTENTIONALLY OMITTED.

     (d) INTENTIONALLY OMITTED.

     (e) INTENTIONALLY OMITTED.

     (g) BROKER shall mean Julien J. Studley, Inc.

     (h) USE shall mean General Offices.

42.  AS-IS POSSESSION: Tenant acknowledges that neither Landlord, nor any agent
of Landlord, has made any representations or promises with regard to the Demised
Premises for the term herein demised except as may otherwise be expressly
provided herein. The taking of possession of the Demised Premises by Tenant for
the term herein demised shall be conclusive evidence as against Tenant that
Tenant accepts the same "as-is" and that the Demised Premises were in good and
satisfactory condition at the time such possession was taken. Except for
"Landlord's Work" (if any) as provided in Exhibit "A" annexed hereto Landlord
shall not be obligated to make any repairs, alterations, improvements or
additions to the Demised Premises for Tenant's initial occupancy.

43.  USE: (A) Subject to and in accordance with the rules, regulations, laws,
ordinances, statutory limitations and requirements of all governmental
authorities and the fire insurance rating organization and board of fire
underwriters and any similar bodies having jurisdiction thereof, Tenant
covenants and agrees that it shall use the Demised Premises solely for the use
as provided in Article 41(h), but for no other purpose.

                                       1

<PAGE>

          (B) Tenant agrees that Landlord shall have the right to prohibit the
use of the Demised Premises by Tenant for any method of operation Landlord
reasonably deems detrimental to the operation or reputation of the Building and
upon notice from Landlord, Tenant shall forthwith refrain from or discontinue
such activities.

44.  TENANT'S INSTALLATIONS: All work necessary or desirable to make the Demised
Premises suitable for Tenant's use and occupancy (other than Landlord's Work)
shall be performed by Tenant at Tenant's own cost and expense (hereinafter
called "Tenant's Work"). Tenant's Work to be performed by Tenant in the Demised
Premises shall be subject to the following conditions:

          (A) Tenant shall comply with all of the laws, orders, rules and
regulations of all governmental authorities, and of the fire insurance rating
organization having jurisdiction thereof, and the local board of fire
underwriters, or any similar body, and Tenant shall have procured and paid for,
so far as the same may be required, all governmental permits and authorizations;

          (B) Prior to commencing Tenant's Work, all plans and specifications
therefor shall be submitted to Landlord for Landlord's prior written approval.
Except for Tenant's Work in connection with its initial occupancy of the Demised
Premises, if, in connection with determining whether or not to approve Tenant's
plans and specifications Landlord incurs architectural, engineering or other
professional fees, Tenant shall pay such reasonable fees as additional rent
within ten days of submission of such bills to Tenant;

          (C) Prior to commencing Tenant's Work, Tenant shall at its own cost
and expense deliver to Landlord an endorsement of Tenant's and Tenant's
contractor's policy of commercial general liability insurance referred to in
Article 52 of this Lease, covering the risk during the course of performance of
Tenant's Work, together with proof of payment of such endorsement, which policy
as endorsed shall protect Landlord and its managing agent in the same amounts
against any claims or liability arising out of Tenant's Work, and Tenant or
Tenant's contractors shall obtain workers' compensation insurance to cover all
persons engaged in Tenant's Work and liability insurance covering Tenant's Work
in the Demised Premises in the amounts of $1,000,000 in respect of property
damage and $1,000,000 in respect of any one person, not less than $2,000,000 in
respect of any one occurrence, and a certificate thereof shall be furnished to
the Landlord before commencement of any work by any contractor, subcontractor,
their agents, servants or employees. Tenant's contractor shall name Landlord,
its managing agent and any other party as Landlord may request as additional
insureds under said insurance policies;

          (D) All of Tenant's Work shall be done in such a manner so as not to
materially interfere with, delay, or impose any additional expense upon Landlord
in the maintenance of the Building. In no event shall Landlord be required to
consent to any Tenant's Work which would physically affect any part of the
Building outside of the Demised Premises or would, in Landlord's sole judgment,
affect the proper functioning of any of the mechanical, electrical, sanitary or
other systems of the Building. Anything contained herein to the contrary
notwithstanding, Landlord shall not unreasonably withhold its consent to:
Tenant's installation of duct work for its air conditioning; the installation of
bathrooms and a kitchen in the places indicated on the plan annexed hereto using
existing roughing; distribution of electricity from the submeter throughout the
Demised Premises in compliance with law.

          (E) Subject to the provisions of Articles 51 and 9 hereof, Tenant
shall make all repairs to the Demised Premises necessitated by Tenant's Work
permitted hereunder, and shall keep and maintain in good order and condition all
of the installations in connection with Tenant's Work, and shall make all
necessary replacements thereto.

          (F) Prior to commencing Tenant's Work, Tenant shall deliver to
Landlord the names and addresses of Tenant's general contractor. Tenant, at its
sole cost and expense, shall procure written waivers of the right to file
mechanic's liens executed by its general contractor

                                       2

<PAGE>

simultaneously with payment for the labor performed or materials furnished has
been made to its general contractor. Tenant shall also procure written releases
of lien executed by its general contractors simultaneously upon payment in full
for the labor performed or materials furnished by its general contractor. Any
failure or refusal on the part of Tenant to comply with the foregoing shall be
deemed a default under this Lease.

45.  ELECTRICITY: Electricity shall be supplied to Tenant in accordance with the
provisions of paragraph A of Rider A annexed hereto.

46.  TAX ESCALATION: (A) As used in this Lease:

                  (i)   "Taxes" shall mean the real estate taxes and assessments
and special assessments imposed upon the Building and/or the land on which the
Building is situated (the "Land") by any governmental bodies or authorities. If
at any time during the term of this Lease the methods of taxation prevailing at
the commencement of the term hereof shall be altered so that in lieu of, or as
an addition to or as a substitute for the whole or any part of the taxes,
assessments, levies, impositions or charges now levied, assessed or imposed on
real estate and the improvements thereof, there shall be levied, assessed and
imposed (a) a tax, assessment, levy or otherwise on the rents received
therefrom, or (b) a license fee measured by the rent payable by Tenant to
Landlord, or (c) any other such additional or substitute tax, assessment, levy,
imposition or charge, then all such taxes, assessments, levies, impositions or
charges or the part thereof so measured or based shall be deemed to be included
within the term "Taxes" for the purpose hereof.

                  (ii)  "Tax Year" shall mean the fiscal year commencing on
July 1 and ending on June 30 (or such other period as hereafter may be duly
adopted by the City of New York as its fiscal year for real estate tax
purposes).

              (B) (i)   If the Taxes for any Tax Year during the term hereof
shall be more than the Base Tax, Tenant shall pay as Additional Rent for such
Tax Year an amount equal to Tenant's Share of the amount by which the Taxes for
such Tax Year are greater than the Base Tax (the amount payable by Tenant is
hereinafter called the "Tax Payment"). The Tax Payment shall be prorated, if
necessary, to correspond with that portion of a Tax Year occurring within the
term of this Lease. The Tax Payment shall be payable by Tenant within thirty
(30) days after receipt of a demand from Landlord therefor. In addition to and
supplementing the foregoing, Landlord may estimate the amount of the Tax Payment
which will be due from Tenant to Landlord and notify Tenant of the amount so
estimated. Thereupon, Tenant shall pay the amount so estimated to Landlord, in
equal monthly installments, in advance, on the first day of each calendar month
during the applicable Tax Year. Within sixty (60) days after the end of each Tax
Year, Landlord shall deliver a copy to Tenant of all tax bills for such Tax
Year, together with a statement showing the amount of Tenant's Tax Payment. If
the amount of such monthly payments paid by Tenant exceeds the actual amount
due, the overpayment shall be credited on Tenant's next succeeding payment or,
during the last year of the term, Landlord will refund such excess to Tenant
within thirty (30) days following the expiration of the term, if Tenant is not
in default hereunder. If the amount of such monthly payments paid by Tenant
shall be less than the actual amount due, then Tenant shall pay to Landlord the
difference between the amount paid by Tenant and the actual amount due within
thirty (30) days after demand from Landlord. Landlord shall pay Taxes to the
Taxing Authority as same become due.

                  (ii)  In the event the Base Tax is reduced as a result of an
appropriate proceeding, Landlord shall have the right to adjust the amount of
Tax Payment due from Tenant for any Tax Year in which Tenant is or was obligated
to pay a Tax Payment hereunder, and Tenant agrees to pay the amount of said
adjustment on the next rental installments day immediately following receipt of
a rent statement from Landlord setting forth the amount of said adjustment.

              (C) Only Landlord shall be eligible to institute tax reduction or
other proceedings to reduce the assessed valuation of the Land and the Building.
Should Landlord be successful in any such reduction proceedings and obtain a
rebate for periods during which Tenant has paid its share of increases, Landlord
shall after deducting its reasonable expenses, including attorneys' fees and
disbursements in connection therewith, return Tenant's Share of such rebate to
Tenant. Tenant's right to the return of Tenant's Share of such rebate shall
survive the expiration or sooner termination of the Lease term for a period of
two (2) years.

                                       3

<PAGE>

              (D) With respect to any period at the expiration of the term of
this Lease which shall constitute a partial Tax Year, Landlord's statement shall
apportion the amount of the Additional Rent due hereunder. The obligation of
Tenant in respect to such Additional Rent applicable for the last year of the
term of this Lease or part thereof shall survive the expiration or sooner
termination of the term of this Lease for a period of two years.

              (E) Notwithstanding the fact that the increase in rent is
measured by an increase in Taxes, such increase is Additional Rent and shall be
paid by Tenant as provided herein regardless of the fact that Tenant may be
exempt, in whole or in part, from the payment of any taxes by reason of Tenant's
diplomatic or other tax-exempt status or for any other reason whatsoever.

              (F) In no event will Taxes include income, franchise, estate
inheritance transfer or gains taxes.

47.  INTENTIONALLY OMITTED.

48.  INTENTIONALLY OMITTED.

49.  NON-WAIVER AND SURVIVAL OF ADDITIONAL RENT OBLIGATIONS: Landlord's failure
during the Lease term to prepare and deliver any of the tax bills, statements,
notices or bills set forth in Article 46, 47 and 48 or Landlord's failure to
make a demand shall not in any way cause Landlord to forfeit or surrender its
rights to collect any of the foregoing items of Additional Rent which may have
become due during the term of this Lease. Tenant's liability for the amounts due
under Article 46, 47 and 48 shall survive the expiration or sooner termination
of the Lease term for a period of two (2) years.

50. ADDENDUM TO ARTICLE 6 (COMPLIANCE WITH LAWS): Supplementing the provisions
of Article 6 hereof, Tenant shall give prompt notice to Landlord of any notice
it receives of the violation of any law or requirement of any public authority
with respect to the Demised Premises or the use or occupation thereof. Tenant
shall promptly comply with all present and future laws, orders and regulations
of all state, federal, municipal and local governments, departments, commissions
and boards or any direction of any public officer pursuant to law, and all
orders, rules and regulations of the New York Board of Fire Underwriters or any
similar body which shall impose any violation, order or duty upon Landlord or
Tenant with respect to the Demised Premises (in which event Tenant shall effect
such compliance at its sole cost and expense) or the Building arising out of
Tenant's use or manner of use of the Demised Premises, or Tenant's construction,
installation or alteration therein (in which event, notwithstanding anything
herein to the contrary, Landlord shall effect such compliance but Tenant shall
promptly pay to Landlord Tenant's Share of the cost thereof).

51. WAIVER OF SUBROGATION: Each party hereby releases the other party (which
term as used in this Article includes the shareholders, principals, partners,
members, assignees, sublessees, employees, agents, officers and directors of the
other party) from all liability, whether for negligence or otherwise, in
connection with loss covered by any fire and/or extended coverage insurance
policies, which the releasor carries with respect to the Demised Premises or
Building, or any interest or property therein or thereon (whether or not such
insurance is required to be carried under this Lease), but only to the extent
that such loss is collected under said fire and/or extended coverage insurance
policies. Such release is also conditioned upon the inclusion in the policy or
policies of a provision whereby any such release shall not adversely affect
said policies, or prejudice any right of the releasor to recover thereunder.
Each party agrees that its insurance policies aforesaid will include such a
provision so long as the same shall be obtainable without extra cost, or if
extra cost shall be charged therefor, so long as the party for whose benefit the
clause or endorsement is obtained shall pay such extra cost. If extra cost shall
be chargeable therefor, each party shall advise the other of the extra cost, and
the other party at its election may pay the same, but shall not be obligated to
do so.

52. INDEMNITY-LIABILITY INSURANCE: (A) Subject to the provisions of Article 51
hereof, Tenant covenants and agrees to indemnify and save Landlord, its
managing agent and its

                                       4

<PAGE>

principals, disclosed or undisclosed, harmless from and against any and all
claims, losses, damages or expenses (including reasonable attorneys' fees) or
other liability arising during the term of this Lease out of or in connection
with (i) the construction, possession, use, occupancy, management, repair,
maintenance or control by Tenant, its agents, employees, and contractors of the
Demised Premises or any part thereof or any other part of the Building used by
Tenant, or (ii) any act or omission of Tenant or Tenant's agents, employees,
contractors, concessionaires, licensees, invitees, subtenants or assignees, or
(iii) any default, breach, violation or nonperformance of this Lease or any
provision hereof by Tenant, or (iv) any injury to person or property or loss of
life sustained in or about the Demised Premises or any part thereof, except such
claims found to be the result of the negligence or willful acts of Landlord,
its agents, employees or contractors. Tenant shall, at its own cost and expense,
defend any and all actions, suits and proceedings which may be brought against
Landlord in connection with any such claims, and Tenant shall pay, satisfy and
discharge any and all judgments, orders and decrees which may be made or entered
against Landlord, its managing agent, its principals, disclosed or undisclosed,
with respect to, or in connection with, any of the foregoing the comprehensive
general liability coverage maintained by Tenant pursuant to this Lease shall
specifically insure the contractual obligations of Tenant as set forth in this
Article and/or as provided in this Lease if such coverage is available at
commercially reasonable rates.

              (B) Tenant covenants to provide on or before the Commencement Date
of the term hereof and to keep in force during the term hereof for the benefit
of Landlord, its managing agent and Tenant a comprehensive policy of liability
insurance protecting Landlord, its managing agent and Tenant (and any other
parties as Landlord shall designate to be added as insured parties) against
liability occasioned by accident on or about the Demised Premises or any
appurtenances thereto. Such policy is to be written by good and solvent
insurance companies licensed to do business in the State of New York and
reasonably satisfactory to Landlord. The policy shall be a comprehensive
General Liability type and extended to include personal injury liability and
fire legal liability with the amounts of liability thereunder not less than
$1,000,000.00 in respect of any one person, not less than $2,000,000.00 in
respect of any one accident, and not less than $500,000.00 in respect of
property damages. In addition, Tenant will, at Tenant's expense, maintain (i)
workers' compensation insurance within statutory limits covering all employees
of Tenant with respect to whom death or bodily injury claims could be asserted
against Landlord or Tenant, and Tenant shall have its contractors maintain such
coverage with respect to the employee of contractor; (ii) fire and extended
coverage, vandalism, malicious mischief and special extended coverage insurance
in an amount adequate to cover the cost of replacement of all fixtures and
decorations and Tenant's improvements in the Demised Premises; and (iii) rent
insurance covering those risks referred to in (ii) above in an amount equal to
all Minimum Rent and Additional Rent payable under this Lease for a period of
twelve (12) months commencing with the date of loss. Prior to the time such
insurance is first required to be carried by Tenant, and thereafter at least
thirty (30) days prior to the expiration of any such policy, Tenant agrees to
deliver to Landlord either a duplicate or original of the aforesaid policy or a
certificate evidencing such insurance, provided said certificate contains an
endorsement that such insurance may not be canceled or modified except upon ten
(10) days' written notice to Landlord, together with evidence of payment for the
policy. Tenant's failure to provide and keep in force the aforementioned
insurance shall be regarded as a material default hereunder, entitling Landlord
to exercise any or all of the remedies as provided in this Lease in the event of
Tenant's default. The minimum limits of insurance described above shall be
subject to increase at any time, and from time to time, after the third
anniversary of the commencement date, and no more often than once every two
years if Landlord shall reasonably deem same necessary for adequate protection.
Within thirty (30) days after demand therefor by Landlord, Tenant shall furnish
Landlord with evidence of compliance with such demand.

53.  TENANT'S CERTIFICATE: Each party shall, without charge at any time and from
time to time, within ten (10) days after request by the other party, certify by
written instrument, duly executed, acknowledged and delivered, to any mortgagee,
assignee of any mortgage or purchaser, or any proposed mortgagee, assignee of
any mortgage or purchaser, assignee, sublessee or any other person, firm or
corporation specified by the requesting party:

              (A) that this Lease is unmodified and in full force and effect
(or, if there has been modification, that the same is in full force and effect
as modified and stating the modifications);

                                       5
<PAGE>
         (B) whether or not there are then existing any setoffs or defenses
against the enforcement of any of the agreements, terms, covenants or conditions
hereof upon the part of Tenant to be performed or complied with (and, if so,
specifying the same); and

         (C) the dates, if any, to which the rental and other charges hereunder
have been paid in advance; and

         (D) Such other information as may reasonably be requested.

54. EXCULPATORY CLAUSE: If Landlord shall be an individual, joint venture,
tenancy-in-common, co-partnership, unincorporated association, or other
unincorporated aggregate of individuals and/or entities, or a corporation,
Tenant shall look only to such Landlord's estate and property in the Building
and, where expressly so provided in this Lease, to offset against the rents
payable under this Lease, for the satisfaction of Tenant's remedies for the
collection of a judgment (or other judicial process) requiring the payment of
money by Landlord in the event of any default by Landlord hereunder, and no
other property or assets of such Landlord or any of the principals of Landlord,
disclosed or undisclosed, shall be subject to levy, execution or other
enforcement procedure for the satisfaction of Tenant's remedies under or with
respect to this Lease, the relationship of Landlord and Tenant hereunder or
Tenant's use or occupancy of the Demised Premises.

55. BROKER: Landlord and Tenant each covenant, warrant and represent to the
other that there was no broker instrumental in consummating this Lease and no
conversations or negotiations were had with any broker other than broker
concerning the renting of the Demises Premises. Tenant agrees to indemnify,
defend and hold and save Landlord harmless against any and all liability from
any claims of any Broker other than Broker who claims to have dealt with Tenant
(including, without limitation, the cost of counsel fees in connection with the
defense of any such claims in connection with the renting of the Demised
Premises). Based upon such representation, Landlord has agreed to enter into
this leasing agreement with Tenant and shall be responsible for payment of any
commission due Broker pursuant to a separate agreement.

56. CONFLICT OF TERMS: In the event any term, covenant, condition or agreement
contained in this rider to the Lease shall conflict or be inconsistent with any
term, covenant, condition or agreement contained in the printed portion of this
Lease, then the parties agree that the rider provision shall prevail.

57. TENANT'S REMEDIES: With respect to any provision of this Lease which
provides, in effect, that Landlord shall not unreasonably withhold or
unreasonably delay any consent or any approval, Tenant in no event shall be
entitled to make, nor shall Tenant make, any claim, and Tenant hereby waives any
claim, for money damages; nor shall Tenant claim any money damages by way of
setoff, counterclaim or defense, based upon any claim or assertion by Tenant
that Landlord has unreasonably withheld or unreasonably delayed any consent or
approval; but Tenant's sole remedy shall be an action or proceeding to enforce
any such provision, or for specific performance, injunction or declaratory
judgment.

58. TENANT'S OPERATING OBLIGATIONS: Tenant covenants and agrees that during the
term of this Lease:

         (A) If any governmental license or permit shall be required for the
proper and lawful conduct of Tenant's business in the Demised Premises, or any
part thereof, and if failure to secure such license or permit would in any way
affect Landlord, then Tenant, at its sole cost and expense, shall duly procure
and thereafter maintain such license or permit and submit the same to inspection
by Landlord. Tenant shall at all times comply with the terms and conditions of
each such license or permit.

         (B) Tenant shall maintain any sanitary lines within the Demised
Premises and shall not misuse plumbing facilities or dispose of any foreign
substance therein. Tenant shall not permit any food, waste, or other foreign
substances to be thrown or drawn into the pipes. Tenant shall maintain the
plumbing that it installs in good order, repair and condition, and repair any
damage resulting from any violation of this Paragraph. Tenant shall make any
repairs to the other plumbing in the Building, if damage results from Tenant's
improper use of such plumbing.

                                       6

<PAGE>

         (C) To the extent such service is reasonably necessary, Tenant will
retain a licensed professional exterminating service which will service the
Demised Premises throughout the term so as to keep the Demised Premises free of
vermin.

         (D) If required by law, or the Fire Insurance Rating Organization,
Tenant shall install chemical extinguishing devices approved by the Fire
Insurance Rating Organization and shall keep such devices under service as
required by such organization. If gas is used in the Demised Premises, Tenant
shall install gas cutoff devices (manual and automatic).

         (E) Tenant will not encumber or obstruct or permit to be encumbered or
obstructed any hallway, service elevator, stairway or passageway in the
Building.

         (F) Tenant covenants and agrees that throughout the term, it shall not
suffer, allow or permit any offensive or obnoxious vibration, noise, odor or
other undesirable effect to emanate from the Demised Premises, or any machine or
other installation therein, or otherwise suffer, allow or permit any such
obnoxious vibration, noise, odor or other undesirable effect to constitute a
nuisance or otherwise interfere with the safety, comfort or convenience of
Landlord, or other tenants, occupants, customers, agents, or invitees or any
others lawfully in or upon the Building and upon Landlord's notice, Tenant shall
within five (5) days thereof remove or control the same, and if any such
condition is not so remedied, then Landlord may, at its discretion, either; (i)
cure such condition and add any cost and expense incurred by Landlord therefor
to the next installment of rent due under this Lease, and Tenant shall then pay
said amount, as Additional Rent hereunder; or (ii) treat such failure on the
part of Tenant to remedy such condition as a material default of this Lease on
the part of Tenant hereunder, entitling Landlord to any of its remedies pursuant
to the terms of this Lease.

         (G) Tenant shall not subject any fixtures or equipment in or on the
Demised Premises which are affixed to the realty, to any mortgage, liens,
conditions, sales agreements, security interests or encumbrances.

         (H) Tenant shall not perform any act or carry on any practice which may
damage, mar or deface the Demised Premises or any other part of the Building.

         (I) Tenant shall not permit window cleaning or other exterior
maintenance and janitorial services in and for the Demised Premises to be
performed except by such person(s) as shall be approved by Landlord, and except
during reasonable hours designated for such purposes by Landlord.

         (J) Tenant shall not install, operate or maintain in the Demised
Premises any electrical equipment which will overload the electrical system
therein, or any part thereof, beyond its reasonable capacity for proper and safe
operation, as determined by Landlord, in light of the overall system and
requirements therefor in the Building, or which does not bear underwriters'
approval.

         (K) Tenant shall not use or occupy the Demised Premises for any purpose
calculated to injure the reputation of the Demised Premises, and/or the Building
or of the neighborhood in which the same are located or to, presently or in the
future, impair the value of the Demised Premises and/or the Building.

         (L) Tenant shall not permit any business to be operated in or from the
Demised Premises by any concessionaire or licensee without the prior written
consent of Landlord in each instance.

         (M) Except for a microwave oven and coffeemaker, there shall be no
cooking or food preparation whatsoever in the Demised Premises.

                                       7

<PAGE>

59. LABOR REGULATIONS: Tenant covenants and agrees that prior to and throughout
the demised term in connection with Tenant's Work or any other installation,
construction or improvements in or the to the Demised Premises, and the
maintenance and repair thereof, it shall not take any action which would violate
Landlord's union contract, if any, affecting the Building, nor create any work
stoppage, picketing, labor disruption or dispute, or any interference with the
business of Landlord or any other tenant or occupant in the Building or with the
rights and privileges of any person(s) lawfully in the Building, nor cause any
impairment or reduction of the good name of the Building. Any default by Tenant
under this Article shall be deemed a material default entitling Landlord to
exercise any or all of the remedies as provided in this Lease subject to the
notice provisions provided in Article 17 hereof.

60. INTENTIONALLY OMITTED.

61. ADDENDUM TO ARTICLE 22 (END OF TERM): If Tenant shall default in
surrendering the Demised Premises upon the expiration or termination of the
term, Tenant's occupancy subsequent to such expiration or termination, whether
or not with the consent or acquiescence of Landlord, shall be deemed to be that
of a tenancy at will and in no event from month to month or from year to year,
and it shall be subject to all the terms, covenants and conditions of this Lease
applicable thereto, except the Minimum Rent shall be twice the amount payable in
the last year of the term, and no extension or renewal of this Lease shall be
deemed to have occurred by such holding over. In the event Landlord shall
commence proceedings to dispossess Tenant by reason of Tenant's default, Tenant
shall pay, in addition to costs and disbursements, minimum legal fees of $500.00
for each proceeding as Additional Rent hereunder.

62. ADDENDUM TO ARTICLE 18 (LANDLORD'S REMEDIES): Should Tenant fail to pay
within five (5) days after same becomes due any installment of Minimum Rent,
Additional Rent, or any other sum payable to Landlord under the terms of this
Lease, then interest shall accrue from and after the date on which any such sum
shall be due and payable, and such interest, together with a late charge of five
cents for each dollar overdue to cover the extra expense involved in handling
such delinquency shall be paid by Tenant to Landlord at the time of payment of
the delinquent sum. If Tenant shall issue a check to Landlord which is
returnable unpaid for any reason, Tenant shall pay Landlord an additional charge
of $100.00 for Landlord's expenses in connection therewith. If Tenant shall be
late in making any payment due under this Lease more than three (3) times in any
Lease Year, Landlord shall be entitled to demand from Tenant and Tenant agrees
to tender to Landlord additional security in the amount of one month's current
Minimum Rent to be held in accordance with the terms of Article 32 hereof.

63. INTEREST: Whenever this Lease refers to "interest" (except in relation to
Tenant's security deposit), same shall be computed at a rate equal to the "Prime
Rate" (as hereinafter defined) plus three (3%) percent except where otherwise in
this Lease a different rate is specifically set forth. If, however, payment of
interest at any such rate by Tenant (or by the tenant then in possession having
succeeded to Tenant's interest in accordance with the terms of this Lease)
should be unlawful, i.e., violative of the usury statutes or otherwise, then
"interest" shall, as against such party, be computed at the maximum lawful rate
payable by such party. "Prime Rate" shall mean the rate being reported at the
time in question by The Wall Street Journal.

64. ARBITRATION: Either party may request arbitration of any matter in dispute
wherein arbitration is expressly provided in this Lease as the appropriate
remedy. All such controversies shall be settled by decision of the Chairman of
the Real Estate Board of New York, Inc. whose decision shall be final and
conclusive upon the parties hereto and a judgment may be obtained thereon in any
court having jurisdiction in accordance with the procedural rules then obtaining
of the Real Estate Board of New York, Inc. or any successor thereto. The
arbitrator or arbitrators may grant injunctions or other relief in such
controversies or claims. The parties agree that the unsuccessful party shall pay
the entire cost and expense of such arbitration, and each shall separately pay
for its own attorneys' fees and expenses.

65. ENTIRE AGREEMENT: No earlier statement or prior written matter shall have
any force or effect. Tenant agrees that it is not relying on any representations
or agreements other than those contained in this Lease. This agreement shall not
be modified or canceled except by writing subscribed by all of the parties
hereto.

                                       8
<PAGE>

66. SAVINGS PROVISION: If any provision of this Lease or its application to any
situation shall be invalid or unenforceable to any extent, the remainder of this
Lease, or the application thereof to situations other than that as to which it
is invalid or unenforceable shall not be affected thereby, and every provision
of this Lease shall be valid and enforceable to the fullest extent permitted by
law.

67. LEASE NOT BINDING UNLESS EXECUTED: Submission by Landlord of the within
Lease for execution by Tenant shall confer no rights nor impose any obligations
on either party unless and until both Landlord and Tenant shall have executed
this Lease and duplicate originals thereof shall have been delivered to the
respective parties.

68. MECHANIC'S LIENS: (A) Notwithstanding anything to the contrary contained in
this Lease, Tenant, its successors and assigns, warrant and guarantee to
Landlord, its successors and assigns, that if any mechanic's lien shall be filed
against the Building of which the Demised Premises forms a part, for work
claimed to have been done for, or materials claimed to have been furnished to,
Tenant (i) the same shall be discharged by Tenant, by either payment, by bond or
otherwise, at the sole cost and expense of Tenant, within thirty (30) days of
the giving of notice thereof by Landlord, (ii) either a release or a
satisfaction of lien, as the case may be or other appropriate evidence of
bonding, shall be filed with the County Clerk of the county in which the
Building is situated within such thirty (30) day period, and (iii) a copy of
such release or satisfaction, as the case may be, certified to by such County
Clerk shall be delivered to Landlord within three (3) days after such filing.

         (B) In the event such mechanic's lien is not discharged timely, as
aforesaid, Landlord may discharge same for the account of and at the expense of
Tenant by payment, bonding or otherwise, without investigation as to the
validity thereof or of any offsets or defenses thereto, and Tenant shall
promptly reimburse Landlord, as Additional Rent, for all costs, disbursements,
fees and expenses, including, without limitation, legal fees, incurred in
connection with so discharging said mechanic's lien, together with interest
thereon from the time or times of payment until reimbursement by Tenant.

         (C) In the event such mechanic's lien is not discharged timely, as
aforesaid, Landlord, in addition to all other rights granted to Landlord in this
Lease and without limitation, may institute a dispossess summary proceeding
based upon such failure to discharge any such lien. In the event Tenant fails to
deliver to Landlord the certified copy of the release or satisfaction required
hereunder within the time period provided for the delivery thereof to Landlord,
Landlord shall have the right to assume that such mechanic's lien has not been
discharged and Landlord shall have all of the rights and remedies provided for
herein based upon Tenant's failure to discharge any such lien.

         (D) It is further expressly understood and agreed between the parties
hereto that Landlord may expend all or a portion of the security deposit made by
Tenant hereunder toward discharging any such mechanic's lien and the cost,
expenses, fees and disbursements, including, without limitation, legal fees, in
connection therewith. Upon notification by Landlord of the application of all or
a portion of the security deposited by Tenant, Tenant shall, within ten (10)
days after receipt of said notice, restore the security deposit to such amount
held by Landlord prior to Landlord's application thereof. Tenant's failure to do
so within said ten (10) day period shall constitute a material default under
this Lease.

69. LANDLORD'S CONSENT: If Tenant requests Landlord's consent or approval to
alterations, assignment, subletting or any other matter or thing requiring
Landlord's consent or approval under this Lease (except in connection with the
initial Tenant's Work to prepare the Demised Premises for Tenant's occupancy),
and if in connection with such request Landlord seeks the advice of its
attorneys, architect and/or engineer, then Landlord, as a condition precedent to
granting its consent or approval, may require (in addition to any other
requirements of Landlord in connection with such request) that Tenant pay the
reasonable fee of Landlord's attorneys, architect and/or engineer in connection
with the consideration of such request and/or the preparation of any documents
pertaining thereto.

                                       9

<PAGE>

70. ENTRANCE DOORS: Tenant shall, throughout the term of this Lease, maintain,
repair, service and replace when necessary, all doors leading into and out of
the Demised Premises and all hardware appurtenant thereto, including, but not
limited to, locks, hinges, silencers, door stops, door jams, door closets,
latchsets, flashbulbs, door frames, thresholds and door knobs. Landlord shall
have no liability or obligation whatsoever regarding the maintenance, repair,
service and replacement of the foregoing.

71. FINANCING REQUIREMENTS: If, in connection with obtaining financing or
refinancing for the Building of which the Demised Premises form a part, a
banking, insurance or other institutional lender shall request reasonable
modifications to this Lease as a condition to such financing or refinancing,
Tenant shall not unreasonably withhold, delay or defer its consent thereto;
provided, however, that such modifications do not increase the obligations of
Tenant hereunder (except, perhaps, to the extent that Tenant may be required to
give notices of any defaults by Landlord to such lender and/or permit the curing
of such defaults by such lender together with the granting of such additional
time for such curing as may be required for such lender to get possession of the
Building) or materially adversely affect the Leasehold interest hereby created.
In no event shall a requirement that the consent of any such lender be given for
any modification of this Lease or subject to the provisions of this Lease for
any assignment or sublease (as long as the standards for the consent of such
lender to an assignment or sublease are the same as the standards for Landlord's
consent thereto), be deemed to materially adversely affect the Leasehold
interest hereby created.

72. WAIVER OF COUNTERCLAIM: Except for a so-called "compulsory" counterclaim,
Tenant hereby waives the right to interpose any offset or counterclaim in any
action or proceeding brought by the Landlord against the Tenant, or to enjoin
any such action or proceeding brought by the Landlord against the Tenant and the
Tenant further waives the right to consolidate with, or try together in any such
action or proceeding so instituted by the Landlord, any action or proceeding
then pending or thereafter instituted by the Tenant against the Landlord.

73. PERMITS AND FEES: Tenant covenants and agrees that, upon request of
Landlord, it shall, within ten (10) days from the date of the request, furnish
Landlord with an up-to-date copy of any permit or license required by any
authority having jurisdiction therein for Tenant to conduct business at the
Demised Premises.

74. FORCE MAJEURE: Except for the payment of Minimum Rent and Additional Rent,
neither party shall be deemed in default in the performance of any obligation or
undertaking provided herein in the event and/or so long as the performance of
any such obligation is prevented or delayed, retarded or hindered by act of God,
fire, earthquake, floods, explosion, action of the elements, war, hostilities,
invasion, insurrection, riot, mob violence, sabotage, inability to procure or
general shortage of labor equipment, facilities, materials or supplies in the
open market, failure of transportation, strikes, lockouts, action of labor
unions, condemnation, requisition, laws, orders of government or civil or
military or naval authorities, act or failure to act of either party which
causes either party to be delayed in the performance of any such obligation or
undertaking, or any other cause, whether similar or dissimilar to the foregoing,
not within the reasonable control of the performing party.

75. ATTORNMENT: At the option of Landlord or any successor landlord or holder of
any mortgage affecting the Demised Premises, Tenant agrees that neither the
cancellation nor termination of any ground or underlying Lease to which this
Lease is now or may hereafter become subject or subordinate, nor any foreclosure
of a mortgage affecting the Demised Premises, nor the institution of any suit,
actions, summary or other proceeding against Landlord or any successor landlord,
or any foreclosure proceedings brought by the holder of any such mortgage to
recover possession of the Demised Premises, shall by operation of law or
otherwise result in the cancellation or termination of this Lease or the
obligations of Tenant hereunder, and upon the request of Landlord, successor
landlord or mortgagee, Tenant covenants and agrees to attorn to the Landlord or
to any successor the Landlord's interest in the Demised Premises, or to the
mortgagee or to the purchaser of the mortgaged premises in foreclosure.

76. SORTING AND SEPARATION OF REFUSE AND TRASH:

     Tenant covenants and agrees, at its sole cost and expense, to comply with
all present and future laws, orders and regulations of all state, federal,
municipal and local governments, departments, commissions and boards regarding
the collection, sorting, separation and recycling

                                      10

<PAGE>

of waste products, garbage, refuse and trash. Tenant shall sort and separate
such waste products, garbage, refuse and trash into such categories as provided
by law. Each separately sorted category of waste products, garbage and trash
shall be placed in separate receptacles reasonably approved by Landlord. Such
separate receptacles may at Landlord's option, be removed from the Demised
Premises in accordance with a collection schedule prescribed by law. Landlord
reserves the right to refuse to collect or accept from Tenant any waste
products, garbage, refuse or trash which is not separated and sorted as required
by law and to require Tenant to arrange for such collection, at Tenant's sole
cost and expense utilizing a contractor satisfactory to Landlord. Tenant shall
pay all costs, expenses, fines, penalties or damages which may be imposed on
Landlord or Tenant by reason of Tenant's failure to comply with the provisions
of this article, and, at Tenant's sole cost and expense, shall indemnify, defend
and hold Landlord harmless (including legal fees and expenses) from and against
any actions, claims and suits arising from such non-compliance, utilizing
counsel reasonably satisfactory to Landlord.

77. ASSIGNMENT, SUBLETTING, MORTGAGING. A. Tenant will not, by operation of law
or otherwise, assign, mortgage or encumber this Lease, nor sublet or permit the
Demised Premises or any part thereof to be used by others without Landlord's
consent. The consent by Landlord to any assignment or subletting shall not in
any manner be construed to relieve Tenant from obtaining Landlord's express
written consent to any other or further assignment or subletting nor shall any
such consent by Landlord serve to relieve or release Tenant from its obligations
to fully and faithfully observe and perform all of the terms, covenants and
conditions of this Lease on Tenant's part to be observed and performed.

     B. Upon obtaining a proposed assignee or sublessee, upon terms satisfactory
to Tenant, Tenant shall submit to Landlord in writing (w) the name of the
proposed assignee or subtenant; (x) the terms and conditions of the proposed
assignment or subletting; (y) the nature and character of the business and
credit of the proposed assignee or subtenant; (z) current financial statements,
banking references and any other references and information reasonably requested
by the Landlord. Landlord's consent to any such proposed assignment or
subletting shall not be unreasonably withheld or unduly delayed, provided,
however, that Landlord may withhold consent thereto if in the exercise of its
sole reasonable judgment it determines that:

         (i) The financial condition and general reputation of the proposed
assignee or subtenant are not consistent with the extent of the obligation
undertaken by the proposed assignment or sublease or with the character and
reputation of the Building.

         (ii) The proposed use of the Demised Premises is not appropriate for
the Building or in keeping with the character of the existing tenancies or
permitted by the Lease or with the dignity and character of the Building (but
the foregoing shall not be deemed to enlarge the purposes for which the Demised
Premises are permitted to be used as set forth in this Lease).

         (iii) The nature of the occupancy of the proposed assignee or subtenant
will cause an excessive density of employees or traffic or make excessive
demands on the Building's services or facilities or in any other way will lessen
the dignity or character of the Building.

         (iv) The Tenant proposes to assign or sublet to one who, at the time,
is a tenant or occupant of the Building, or a subsidiary, division or affiliate
of any such tenant or occupant of the Building, or to one with whom Landlord or
its agents are actively negotiating for space in the Building, or to one who, at
the time, is a tenant or occupant of premises in any other building then owned
or managed by Landlord or its affiliates.

         (v) The Tenant advertises the availability of all or a portion of the
Demised Premises at a rental rate less than the rental rate Landlord is then
asking for other space in the Building.

     C. Further, and as a condition of Landlord's consent to any assignment or
subletting:

         (i) Tenant at the time of requesting Landlord's consent shall not be in
default under this Lease;

         (ii) Each assignee of this Lease shall assume in writing all of the
terms,

                                      11

<PAGE>

covenants and conditions of this Lease on the part of Tenant hereunder to be
performed and observed from and after the effective date of such assignment;

         (iii) An original or duplicate original of the instrument of assignment
and assumption or of the sublease agreement shall be delivered to Landlord
within (5) days following the making thereof;

         (iv) Any instrument of sublease shall specifically state that each
sublease is subject to all of the terms, covenants and conditions of this Lease;

         (v) Landlord may bill and Tenant shall pay all charges estimated by
Landlord to be due through the date of assignment (without relieving Tenant or
its assignee of the obligation to pay any balance due when the actual charges
are computed);

         (vi) Any portion of the Demised Premises to be sublet shall have a
configuration which does not adversely impact on the remainder of the Demised
Premises and has direct access to the public corridor on the floor;

         (vii) In the event that this Lease shall be terminated, then, at
Landlord's option sublessee shall attorn to Landlord pursuant to the then
executory terms and conditions of this sublease, except that Landlord shall not
(1) be liable for any previous act or omission of Tenant under such sublease,
(2) be subject to any offset, not expressly provided in such sublease, that
theretofore accrued to such subtenant against Tenant or (3) be bound by any
previous modification of such sublease or by any previous prepayment of more
than one month's fixed rent or any additional rent then due.

            If Tenant shall duly comply with all of the foregoing then, as
aforesaid, Landlord shall not unreasonably withhold its consent to such
assignment or subletting.

            Notwithstanding anything contained in this Article to the contrary,
Landlord shall not be obligated to entertain or consider any request by Tenant
to assign this Lease, or sublet all or a part of the Demised Premises unless
each request by Tenant is accompanied by a non-refundable fee payable to
Landlord in the amount of Five Hundred ($500.00) Dollars representing
Landlord's administrative costs and expenses in processing each of Tenant's
requests.

     D. It is agreed that if Landlord shall consent to such assignment or
subletting, and Tenant thereupon assigns this Lease or sublets all or any
portion of the Demised Premises, then and in that event Tenant shall pay to
Landlord, as Additional Rent, (i) in the event of an assignment an amount equal
to one-half of the amount of all monies received by Tenant in excess of the
Minimum Rent and additional rent payable by Tenant pursuant to this Lease for
the corresponding period of such assignment less one-half of Tenant's reasonable
expenses incurred in connection with such assignment including, but not limited
to, any commercially reasonable brokerage fees, advertising and alteration
costs, and attorney's fees; and (ii) in the event of a subletting one-half of
the amount, if any, by which the Minimum Rent and Additional Rent payable by the
sublessee to Tenant shall exceed the Minimum Rent plus Additional Rent allocable
to that part of the Demised Premises affected by such sublease, pursuant to the
provisions of this Lease plus one-half of the amounts, if any, payable by such
sublessee to Tenant pursuant to any side agreement as consideration (partial or
otherwise) for Tenant making such subletting less one-half of Tenant's
reasonable expenses incurred in connection with such subletting, including but
not limited to, any commercially reasonable brokerage fees, advertising and
alteration costs and attorneys fees. Such Additional Rent payments shall be made
monthly within five (5) days after receipt of the same by Tenant or within five
(5) days after Tenant is credited with the same by the assignee or sublessee. At
the time of submitting the proposed assignment or lease sublease to Landlord,
Tenant shall certify to Landlord in writing or not the assignee or sublessee has
agreed to pay any monies to Tenant in consideration of the making of the
assignment or sublease other than as specified and set forth in such
instruments, and if so Tenant shall certify the amounts and time of payment
thereof in reasonable detail.

     E. If this Lease shall be assigned, or if the Demised Premises or any part
thereof be sublet or occupied by any person or persons other than Tenant,
Landlord may, after default by

                                       12

<PAGE>

Tenant, collect rent from the assignee, subtenant or occupant and apply the net
amount collected (which may be treated by Landlord as rent or as use and
occupancy) to the Minimum Rent and Additional Rent herein reserved but no such
assignment, subletting, occupancy or collection of rent shall be deemed a waiver
of the covenants in this Article, nor shall it be deemed an acceptance of the
assignee, subtenant or occupant as a tenant, nor a release of Tenant from the
full performance by Tenant of all the terms, conditions and covenants of this
Lease.

     F. Each permitted assignee shall assume and be deemed to have assumed this
Lease from and after the effective date of such assignment and shall be and
remain liable jointly and severally with Tenant for the payment of the Minimum
Rent and Additional Rent and for the due performance of all the terms,
covenants, conditions and agreements herein contained on Tenant's part to be
performed for the term of this Lease and any renewals and modifications hereof.
No assignment shall be binding on Landlord unless, as hereinbefore provided,
such assignee or Tenant shall deliver to Landlord a duplicate original of the
instrument of assignment which contains a covenant of assumption by the assignee
of all of the obligations aforesaid and shall obtain from Landlord the aforesaid
written consent prior thereto. Any assignment, sublease or agreement permitting
the use and occupancy of the Demised Premises or any portion thereof, to which
Landlord shall not have expressly consented in writing shall be deemed null and
void and of no force or effect.

     G. Tenant agrees that notwithstanding any subletting or assignment
permitted by Landlord, no other or further assignment of this Lease or
subletting of all or any part of the Demised Premises by Tenant or any person or
entity claiming through or under Tenant (except as provided in subparagraphs (B)
or (J) herein) shall or will be made except upon compliance with and subject to
the provisions of this Article.

     H. No acceptance or rent by Landlord from a third party shall constitute a
consent to any assignment or subletting.

     I. In lieu of consenting to any subletting or assignment as detailed above,
the Landlord shall have the option to cancel the term of this Lease by giving
Tenant written notice of its intention to do so within twenty (20) days after
Landlord's receipt of Tenant's request for consent to an assignment of this
Lease or a subletting of all or substantially all of the Demised Premises, in a
single subletting or the aggregate of multiple sublettings and such other
reasonable information regarding the financial condition of such assignee or
sublessee, in which event such cancellation shall become effective on the
effective date of such proposed subletting or assignment, with the same force
and effect as if said cancellation date were the date originally set forth as
the expiration date of the term of this Lease. Anything contained herein to the
contrary, notwithstanding, if Tenant shall have expended at least $250,000.00
in Permanent Building Improvements (as defined in Article 82 hereof) prior to
October 1, 1999, Landlord shall waive its option to cancel contained herein.

     J. Anything contained herein to the contrary notwithstanding, Tenant,
without being subject to Landlord's option to cancel provided for in
subparagraph (I) hereof, or the splitting of profits as contained in
subparagraph (D) hereof shall have the right to assign this Lease or sublet all
or any part of the Demised Premises, to any parent company subsidiaries or a
subsidiary of a parent of Tenant or any entity into or with which Tenant is
merged or consolidated or the purchaser of all or substantially all of Tenant's
assets subject however to Tenant's compliance with paragrpah C hereof, upon
which occurring Landlord shall give its consent to such assignment or
subletting.

78. This Lease shall be construed and enforced in accordance with the laws of
the State of New York.

                                      13

<PAGE>

79. RETURN OF SECURITY

Tenant agrees that at all times through September 31, 2004, it shall have six
(6) months Minimum Rent and electricity charges on deposit with Landlord as
security. On October 1, 2004, provided that the Tenant is not in default under
any of its obligations under this Lease, and Tenant shall not have exercised its
option contained in Article 84 hereof, Tenant shall be entitled to a return of
security so as to leave, with respect to the eleventh floor portion of the
Demised Premises an

                                       14
<PAGE>

equivalent of four (4) months of the then Minimum Rent and electricity charges
on deposit with Landlord as security. Thereafter, Tenant agrees that at all
times it will have on deposit with the Landlord not less than four (4) months of
Minimum Rent and electricity charges as security deposit pursuant to Paragraph
32. It is specifically understood and agreed that on or before the date of any
increase in Minimum Rent after October 1, 2004, the Tenant will deposit with the
Landlord additional security so that at all times it shall have four (4) months
of Minimum Rent on deposit with Landlord as security. This additional security
deposit shall be due and subject to all terms and conditions as if it were
Additional Rent.

80. RENT CREDIT: Provided the Tenant is not in default under any of the terms,
covenants and conditions of this Lease at the time the rent credit is due,
Tenant shall be given six (6) monthly rent credits of $13,333.33 each to be
applied to the second, third, fourth, fifth, sixth and seventh monthly
installments of rent. Tenant shall use the Demised Premises and be subject to
all other terms and conditions of this Lease, including, but not limited to, the
obligation to pay for any and all electric current utilized in or furnished to
the Demised Premises during such period.

81. AIR CONDITIONING

     (A) Tenant shall be permitted to use the air conditioning system presently
contained in the Demised Premises. Tenant covenants and agrees to maintain the
air-conditioning system in good and proper working conditions at all times
during the term of this Lease at Tenant's sole cost and expense and Tenant
further covenants and agrees to furnish and maintain at all times during the
term of this Lease an air conditioning contract with a reputable air
conditioning maintenance contractor reasonably acceptable to the Landlord. Title
to such air conditioning system shall be and continue to remain with Landlord at
all times. Tenant covenants and agrees to pay for any and all water and
electricity required in connection with such air-conditioning system.

     (B) Notwithstanding anything herein contained, except for maintenance or
repair necessitated by the willful acts or negligence of Tenant, its agents,
employees or contractors, Landlord agrees to maintain the air conditioning units
located in the eleventh (11th) floor portion of the Demised Premises for one
year. Thereafter, Tenant shall be responsible for all costs to operate, maintain
and repair said units. In the event said units need to be replaced, or a major
repair is required, the Landlord shall contribute a maximum of $10,000.00 to
replace or repair said units.

82. NON-DISTURBANCE AGREEMENT:

     (A) Provided Tenant shall have expended at least $250,000.00 on "Permanent
Building Improvements" (as hereinafter defined) in the Demised Premises prior to
October 1, 1999, Landlord agrees to obtain a "non-disturbance agreement from the
currently existing mortgagee of the Building, and any future mortgagee of the
Building, to the effect that, provided Tenant is not in default of any of the
terms, covenants, or provisions of this Lease, after having received written
notice thereof, beyond any applicable grace period, Tenant will not be named as
a defendant in any foreclosure action or proceeding which may be instituted by
such mortgagee or any trustee under any deed of trust, nor will Tenant be
evicted from the Demised Premises by reason of any default under the currently
existing mortgage or any future mortgage. If any such mortgagee shall succeed to
the position of Landlord under the Lease, Tenant shall attorn to and recognize
such mortgagee as Tenant's landlord under this Lease, and Tenant shall promptly
execute and deliver an attornment agreement upon the request of such mortgagee,
in form reasonably satisfactory to the attorneys for such mortgagee. It is
understood and agreed that no mortgagee shall be:

     (i) liable for any previous act or omission of any prior landlord under
this Lease;

     (ii) subject to any offsets or defenses which Tenant shall have against any
prior landlord under this Lease;

     (iii) bound by any amendment or modification of this Lease made without
such mortgagee's prior written consent; or

                                       15
<PAGE>

     (iv) obligated to repair, replace, rebuild or restore the Demised Premises
in the event of any damage or destruction beyond such repair, replacement,
rebuilding or restoration as can reasonably be accomplished from the net
proceeds of insurance actually received by such mortgages.

     (B) Any and all expenses in connection with obtaining each such
non-disturbance agreement shall be borne by Tenant, and shall be due and payable
as Additional Rent, promptly upon receipt of a statement therefor.

     (C) "Permanent Building Improvements" shall mean flooring, lighting,
painting, distribution of air conditioning, dry wall partitioning and other dry
wall work, ceiling, carpeting, carpentry, electrical work, cabling, plumbing
and work of a similar nature, but specifically excluding, without limitation,
Tenant's equipment, decorations, furniture and furnishings, so-called "soft"
costs such as architect's and engineer's designers, and other professional fees
and the costs of obtaining permits and approvals.

     (D) Prior to November 1, 1999, Tenant shall submit paid bills or canceled
checks to Landlord establishing the sums expended by Tenant on Permanent
Building Improvements.

     (E) Landlord shall likewise give Tenant non-disturbance protection from any
superior lessor.

83. LETTER OF CREDIT IN LIEU OF SECURITY:

     A. At Tenant's election, in lieu of the security deposit required herein,
Tenant, at anytime simultaneously with, or following the execution of this
Lease, may deliver to Landlord an irrevocable Letter of Credit running in favor
of Landlord by a bank under the supervision of the Superintendent of Banks of
the State of New York or a National Bank, in said sum. The Letter of Credit
shall be irrevocable for the entire term of this Lease.

     B. The form and terms of the Letter of Credit shall be acceptable to
Landlord and shall provide in effect that upon the occurrence of any event of
default by Tenant under this Lease which shall continue after the expiration of
the applicable period of grace provided for in this Lease, the bank shall honor
the Letter of Credit and pay to Landlord the amount due to Landlord by reason of
Tenant's default, upon presentation of the Letter of Credit, together with a
statement verified by Landlord that the Tenant is in default under this Lease
after the expiration of the applicable period of grace, and specifying the
amount due to Landlord by reason thereof. The Letter of Credit will further
provide that it will be honored by the bank upon the delivery of such verified
statement by Landlord without inquiry as to its accuracy and regardless of
whether Tenant disputes the contents of such statements.

     If as a result of any such application of all or any part of such security
the amount secured by the Letter of Credit shall be less than the amount
required pursuant to the terms of this Lease, Tenant shall forthwith provide
Landlord with additional Letter(s) of Credit in an amount equal to the
deficiency.

     In the event of a transfer of Landlord's interest in the Building, Landlord
shall have the right to transfer the Letter of Credit to the transferee and
Landlord shall, without any further agreement between the parties, thereupon be
released by Tenant from all liability therefore. The provisions hereof shall
apply to every transfer or assignment made of the said Letter to a new Landlord.
Tenant further covenants that it will not assign or encumber said Letter of
Credit or any part thereof and that neither Landlord nor its successor or
assigns shall be bound by any such assignment or attempted encumbrance.

     C. If, notwithstanding anything the contrary hereinabove, the Letter of
Credit expires earlier than the expiration of the term of this Lease, Landlord
will accept a one-year renewal thereof, (such renewal to be in effect not later
than thirty (30) days prior to the expiration thereof) irrevocable to the end of
the term of the Letter of Credit upon the same terms as the expiring Letter of
Credit. However, (i) if the Letter of Credit is not timely renewed; (ii) or if
Tenant fails to maintain the Letter of Credit in the amount and terms set forth
in this Article, Tenant, at least thirty (30) days prior to the expiration of
the Letter of Credit, or immediately upon its failure to

                                       16

<PAGE>

comply with each and every term of this Article, shall deposit with Landlord
cash security in the amounts to be held and applied by Landlord as provided in
this Article, and subject to all of the terms and conditions as set forth in
Article 32 hereof, failing which Landlord may present such Letter of Credit to
the bank, in accordance with the terms of this Article, and the entire sum
secured thereby shall be paid to Landlord, to be held as cash security as
provided in this Article and Article 32.

84. TENANT'S ONE TIME RIGHT TO CANCEL LEASE: Subject to the provisions of
subparagraph F of Article 100, provided the Tenant is not in default of any of
the terms, conditions or covenants of this Lease beyond the expiration of any
applicable grace or notice periods, Tenant shall have a one time right to cancel
this Lease effective as of September 30, 2004. Said notice is to be received by
Landlord no later than January 31, 2004, by certified mail, return receipt
requested, or by nationally recognized over-night courier, time being of the
essence. Simultaneously with the giving of such notice by Tenant, Tenant shall
pay Landlord, in certified funds, an amount equal to the sum of $40,000.00 plus
an amount equal to three monthly installments of Minimum Rent then payable under
the Lease. In the event Tenant fails to notfiy the Landlord or make payment by
said date, Tenant shall have no cancellation rights whatsoever. Furthermore,
with such notice Tenant shall pay Landlord the final monthly installment of
Minimum Rent and electricity charges as due under this Lease. The Tenant shall
have no other cancellation rights whatsoever except as specifically detailed in
this clause.

85. OCCUPANCY

     (A) Supplementing Article 15 hereof, Landlord agrees that in the event a
violation is imposed upon Tenant by any Federal, State, City, Municipal or Local
Government, Department, Commission, Board, Agency or other governmental
authority by reason of Tenant's use of the Demised Premises for the purposes
permitted pursuant to Article 2 hereof, Tenant shall immediately notify Landlord
of said violation and Landlord shall be responsible to pay the fine or penalty
connected therewith and Landlord, at its option and at its sole cost and
expense, shall take such steps as Landlord reasonably deems necessary to remove
or correct such violation, provided Landlord may defer compliance with any law,
order, rule, regulation, or directive alleged to have been violated for as long
as Landlord shall in good faith be contesting the validity or applicability
thereof. Notwithstanding the fact that Landlord may be contesting such
violation, it is further expressly understood and agreed that if the certificate
of occupancy covering Demised Premises (the "C/O") does not permit the use of
the Demised Premises for the purposes permitted pursuant to Article 2 hereof
and, (i) Tenant is prohibited by law from using the Demised Premises for the
purposes permitted pursuant to Article 2 hereof and physically prevented from
using the Demised Premises by governmental authority, (ii) the New York City
Buildings Department (the "Buildings Department") raises an objection in
connection with Tenant's filing of plans for the initial construction to the
effect that the C/O does not permit the uses specified in Article 2 hereof, or
(iii) the Buildings Department refuses to issue any required permit or consent
in connection with such work solely because the C/O does not permit the uses
specified in Article 2 hereof, then in the case of any of the foregoing (i),
(ii) or (iii) Tenant may elect to have the term of this Lease cease and expire
on a date (the "Termination Date") which shall be set forth in Tenant's notice
to Landlord, which Termination Date shall not be less than ten (10) days nor
more than forty-five (45) days from the date of such notice. Upon the giving of
such notice, the term of this Lease shall cease and expire on the Termination
Date with the same force and effect as if the Termination Date was the date
originally provided in this Lease as the expiration date of the term hereof and
Landlord shall return to Tenant the first monthly installment of Minimum Rent
paid by Tenant upon execution of this Lease. Except as otherwise provided in
this Lease, Tenant shall surrender full and complete vacant possession of the
Demised Premises to Landlord on or before the Termination Date, broom-clean in
good order and condition, free and clear of all leases, tenancies and rights of
occupancy of anyone claiming by or through Tenant, reasonable wear and tear and
damage by the elements excepted. In addition to Tenant's termination right
stated above, in the event that it is finally judicially determined by a court
of competent jurisdiction (without further judicial appeal), that Tenant cannot
use and occupy the Demised Premises for the purposes permitted pursuant to
Article 2 hereof and Tenant is physically prevented from using the Demised
Premises by governmental authority, then either Tenant or Landlord may elect to
have the term of this Lease cease and expire on a date which shall be set forth
in a notice to the other party, which date shall not be less than ten (10) days
nor more than forty-five (45) days from the date of such notice. Upon the giving
of such notice, the term of this Lease shall cease and expire on the date

                                       17
<PAGE>
specified in such notice with the same force and effect as if such date were
originally provided in this Lease as the expiration date of the term hereof.
Except as otherwise provided in this Lease, Tenant shall surrender full and
complete vacant possession of the Demised Premises to Landlord on or before the
Termination Date, broom-clean in good order and condition, free and clear of all
leases, tenancies and rights of occupancy of anyone claiming by or through
Tenant, reasonable wear and tear and damage by the elements excepted.

     (B) Notwithstanding the foregoing, Tenant shall not have a right to
terminate this Lease as aforesaid by reason of any violations of laws resulting
from Tenant's manner of use of the Demised Premises (as opposed to violations
which may result from Tenant's mere use of the Demised Premises for the purposes
permitted pursuant to Article 2.

     (C) Notwithstanding anything contained herein to the contrary, Tenant's
remedies permitted under this Article 85 shall be limited to the termination
rights referred to above and shall not include a right to sue for damages.

86. RIDER CONTROLS: To the extent that any provision in this rider conflicts
with printed provisions on the Standard Form of Lease to which this rider is
attached the provisions of this rider shall prevail.

87. ALTERATIONS: Owner agrees that no plans or specifications need to be
submitted for purely decorative alterations and that except as otherwise
provided in Article 44 hereof, Owner's approval of all other non-structural
alterations which do not affect the Building's plumbing, electrical, HVAC or
mechanical systems, and the plans and specifications therefor will not be
unreasonably withheld or delayed.

88. COMPLIANCE WITH LAW: Owner represents and warrants that, to the best of the
Owner's knowledge, on the date hereof, the Demised Premises is in compliance
with all applicable laws.

89. ASBESTOS: Owner represents and warrants that, to the best of the Owner's
knowledge, the Demised Premises are free of any asbestos and asbestos-containing
material. If at any time during the term it shall become apparent that this
representation was inaccurate in any respect, Owner shall be responsible for
compliance with law with respect to such material.

90. SUPPLEMENT TO ARTICLE 9: In the event of a fire or casualty affecting all or
a portion of the Demised Premises occurring during the last year of the term of
this Lease (whether by scheduled maturity or exercise of the cancellation option
of Article 84), Tenant shall have the right to cancel this Lease on thirty (30)
days notice to Owner and upon the giving of such notice and the expiration of
such period, this Lease and the term shall end and expire as fully and
completely as if such date were the date originally set forth herein for the end
of this Lease and expiration of the term.

91. LANDLORD'S FIRE AND CASUALTY INSURANCE: Owner agrees that it will maintain
fire and casualty insurance in an all risk form on the Building of which the
Demised Premises form a part for its full insurable value, which insurance will
permit the release and waiver of subrogation provided for in this Lease.

92. ACCESS: Owner agrees to provide access to the Demised Premises seven (7)
days a week and 24 hours a day.

93. SIGNS: Owner agrees that will not unreasonably withhold or delay its consent
to any sign containing Tenant's name on the entrance to the Demised Premises.

94. RULES AND REGULATIONS: Owner agrees that will not enforce the rules and
regulations applying to the Building of which the Demised Premises form a part
in a discriminatory manner.

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<PAGE>

95.  SUPPLEMENT TO ARTICLE 46: Owner agrees that any change in the method of
taxation of real estate and any new or additional taxes to be included within
the term "Taxes" for purposes of Article 46 of this Lease will only be deemed
to be "in substitution for a real estate tax" and, therefore, deemed to be part
of "Taxes" if such change or new or additional tax only applied to the Owners
of real property. Owner represents and warrants to Tenant that, as of the date
hereof, the land and the Building of which the Demised Premises form a part do
not enjoy any tax abatement or tax incentive.

96.  SUPPLEMENT TO ARTICLE 20: Supplementing Article 20 of this Lease, Owner
agrees that no such changes or alterations will materially adversely affect
ingress or egress to or from the Demised Premises nor materially impair services
being provided to the Demised Premises.

97.  DEFAULT: The term "default" or "event of default" and words of similar
import shall mean a failure to perform beyond the applicable grace or cure
period therefor.

98.  LEGAL FEES: The parties agree that the successful party in any legal
proceedings between the parties hereto, as so determined in any such proceeding,
shall be entitled to recover legal fees from the other party.

99.  DEMOLITION REIMBURSEMENT: Landlord shall reimburse Tenant for the costs of
demolition incurred by Tenant in the eleventh (11th) floor portion of the
Demised Premises, in an amount not to exceed $5,000.00. If Tenant elects to add
the seventh (7th) floor of the Building to the Demised Premises in accordance
with the provisions of Article 100 hereof, Landlord shall reimburse Tenant for
costs of demolition incurred by Tenant in the seventh (7th) floor in an amount
not to exceed $10,000.00. Each such reimbursement shall be made by Landlord
within thirty (30) days of Landlord's receipt of cancelled checks or paid
receipts reflecting Tenant's payment for such demolition.

100. TENANT'S OPTION TO ADD ADDITIONAL SPACE:

     (A) Provided Tenant is not then in default of any of the terms, conditions,
or provisions of this Lease, Tenant, by notice given to Landlord on or before
August 31, 1999, may elect to add the entire rentable portion of the seventh
(7th) floor of the Building (the "Additional Space") to the Demised Premises
effective as of January 1, 2000.

     (B) In the event Tenant timely elects to add the Additional Space to the
Demised Premises, effective as of January 1, 2000, the following amendments to
the Lease shall automatically occur:

     (i)   The term "Demised Premises" as used in this Lease shall be deemed to
mean the entire rentable portions of the seventh (7th) and eleventh (11th)
floors of the Building.

     (ii)  The Minimum Rent payable hereunder shall be increased to the
following amounts:

     (a)   $320,000.00 per annum ($26,666.67 per month) from January 1, 2000 to
and including September 30, 2000;

     (b)   $329,600 per annum ($27,466.67 per month) from October 1, 2000 to and
including September 30, 2001;

     (c)   $339,488.00 per annum ($28,290.67 per month) from October 1, 2001 to
and including September 30, 2002;

     (d)   $349,672.64 per annum ($29,139.39 per month) from October 1, 2002 to
and including September 30, 2003;

     (e)   $360,162.82 per annum ($30,013.57 per month) from October 1, 2003 to
and including September 30, 2004;

     (f)   $390,967.70 per annum ($32,580.64 per month) from October 1, 2004 to
and including September 30, 2005;

     (g)   $402,696.74 per annum ($33,558.06 per month) from October 1, 2005 to
and including September 30, 2006;

     (h)   $414,777.64 per annum ($34,564.80 per month) from October 1, 2006 to
and including September 30, 2007;

     (i)   $427,220.96 per annum ($35,601.75 per month) from October 1, 2007 to
and including September 30, 2008; and

                                       18

<PAGE>

     (j)   $440,037.60 per annum ($36,669.80 per month) from October 1, 2008 to
and including September 30, 2009;

     (iii) Tenant's Share as defined in paragraph 41 (c) hereof shall be deemed
to mean ten percent (10.0%).

     (C) Simultaneously upon exercising its option to add the Additional Space,
Tenant shall pay to Landlord by certified check the first monthly installment of
Minimum Rent and estimated electricity charges and Tenant shall deposit with
Landlord additional security so that the total security pursuant to this Lease
shall be $240,000.00, which security shall be increased (subject to the next
succeeding sentence) upon any increase in Minimum Rent so that at all times it
will have on deposit with the Landlord not less than nine (9) months of Minimum
Rent and electricity charges, in cash or a letter of credit pursuant to the
terms of this Lease. If Tenant shall not be in default of any of the terms,
covenants, conditions or provisions of this Lease, on October 1, 2004, Landlord
shall return such security to Tenant, so that the total security deposit then
being held by Landlord shall be an amount equal to six monthly installments of
Minimum Rent and electricity charges then payable by Tenant, or if Tenant shall
have furnished a letter of credit for said security, Tenant may submit, and
Landlord shall accept, a replacement letter of credit therefor in the sum equal
to six (6) months of Minimum Rent and electricity charges. Thereafter, upon any
increase in Minimum Rent, Tenant shall post additional security so as at all
times it shall have six (6) months of Minimum Rent and electric charges on
deposit as security. The foregoing requirements of additional security is in
addition to the security requirements of Article 79 hereof.

     (D) Provided Tenant is not in default of any of the terms, covenants,
conditions or provisions of this Lease at the time the following rent credits
are due, Tenant shall be given four (4) monthly  rent credits of $13,333.33 each
to be applied against the monthly installments of Minimum Rent due for February,
March, April and May, 2000.

     (E) If Tenant shall elect to add the Additional Space to the Demised
Premises, Landlord shall reimburse Tenant for Tenant's demolition work in the
Additional Space in an amount not to exceed $10,000.00. Landlord shall make such
reimbursement payment within thirty (30) days of Landlord's receipt of said
invoices or cancelled checks evidencing Tenant's payment for demolition work in
the Additional Space. Tenant  shall take the Additional Space vacant, free of
tenancies and occupancies and in its "as is" condition in all respects, and
Landlord shall not be required to perform any repairs, alterations, improvements
or additions to the Additional Space for Tenant's initial occupancy.

     (F) Upon Tenant's exercise of its option to add the Additional Space to the
Demised Premises, the provisions of Article 84 hereof shall be deemed null and
void and of no force or effect.

101. SUPPLEMENTING ARTICLE 3: Anything contained in Article 3 to the contrary
notwithstanding, to the extent Tenant's installations in the Demised Premises
are commercially reasonable typical office installations, same may remain upon
and be surrendered with the Demised Premises upon the expiration or sooner
termination of the term of this Lease. To the extent Tenant's installation are
beyond typical office installations (such as, but not limited to raised
flooring, interior staircases, safes or vaults and installations of a similar
nature), Landlord may elect to have Tenant remove same upon the expiration or
sooner termination of the term of this Lease, and upon such removal, Tenant
shall repair and restore the Demised Premises to a substantially similar
condition existing prior to such installation. Landlord shall elect to have
Tenant remove such installations within thirty (30) days of Landlord's receipt
of Tenant's plans and specifications therefor, provided, however, that Tenant
notifies Landlord, in bold-face or underlined type, that Landlord's failure to
indicate, within thirty (30) days from the date of Landlord's receipt of
Tenant's notice, that such installation must be removed by Tenant upon the
expiration or sooner termination of the term of this Lease shall be deemed to
mean that such installations may remain in the Demised Premises upon the
expiration or sooner termination of the term of the Lease.

102. ELECTRICITY: Landlord represents and warrants that there is available for
Tenant's use on each of the seventh (7th) and eleventh (11th) floors of the
Building, 400 AMPS of electricity (three (3) phases). If Tenant requires greater
electric service, it may obtain same and shall pay

                                       19

<PAGE>

the direct cost of obtaining same. Tenant shall use an electrical contractor
approved by Landlord for such work, which approval shall be at Landlord's
discretion.

103. Tenant agrees to post $8,000.00 per floor as security deposit for Tenant's
electric usage. This security is in addition to any other security required
under this Lease. Annually, the Landlord shall review the tenant's electric
usage and shall adjust this electric security deposit so that Tenant has six
months of electric billings on deposit with the Landlord as security for
Tenant's electric charges. In the event additional security is required, Tenant
agrees to post additional security as required upon said review of Tenant's
electric usage. In the event less security is required upon review of Tenant's
electric usage, Landlord shall promptly refund said amounts.

              IN WITNESS WHEREOF, the parties have hereunto set their hands and
seals (or in the case of a corporation, have had their proper corporate
officers execute this as of the date first above written.

                                             LANDLORD:

                                             PENNBUS REALTIES, INC.

                                             By: [illegible]
                                                --------------------------------
                                                Vice President

                                             TENANT:

                                             FORMAN INTERACTIVE CORP.

                                             By: [illegible]
                                                --------------------------------
                                                President

                                       20<PAGE>

                                                                  EXHIBIT 10.6

                               REGISTER.COM, INC.
                            2000 STOCK INCENTIVE PLAN

                                  Article One

                               GENERAL PROVISIONS

         I. PURPOSE OF THE PLAN

         This 2000 Stock Incentive Plan is intended to promote the interests of
Register.com, Inc., a Delaware corporation, by providing eligible persons with
the opportunity to acquire a proprietary interest, or otherwise increase their
proprietary interest, in the Corporation as an incentive for them to remain in
the service of the Corporation.

         Capitalized terms shall have the meanings assigned to such terms in the
attached Appendix.

                           II. STRUCTURE OF THE PLAN

         A. The Plan shall be divided into five separate equity incentive
programs:

         (i) the Discretionary Option Grant Program under which eligible persons
may, at the discretion of the Plan Administrator, be granted options to purchase
shares of Common Stock,

         (ii) the Salary Investment Option Grant Program under which eligible
employees may elect to have a portion of their base salary invested each year in
special options,

         (iii) the Stock Issuance Program under which eligible persons may, at
the discretion of the Plan Administrator, be issued shares of Common Stock
directly, either through the immediate purchase of such shares or as a bonus for
services rendered the Corporation (or any Parent or Subsidiary),

         (iv) the Automatic Option Grant Program under which eligible
non-employee Board members shall automatically receive options at periodic
intervals to purchase shares of Common Stock, and

         (v) the Director Fee Option Grant Program under which non-employee
Board members may elect to have all or any portion of their annual retainer fee
otherwise payable in cash applied to a special option grant.

                                       1
<PAGE>

         B. The provisions of Articles One and Seven shall apply to all equity
programs under the Plan and shall govern the interests of all persons under the
Plan.

                        III. ADMINISTRATION OF THE PLAN

         A. Prior to the Section 12 Registration Date, the Discretionary Option
Grant and Stock Issuance Programs shall be administered by the Board unless
otherwise determined by the Board. Beginning with the Section 12 Registration
Date, the following provisions shall govern the administration of the Plan:

         (i) The Board shall have the authority to administer the Discretionary
Option Grant and Stock Issuance Programs with respect to Section 16 Insiders but
may delegate such authority in whole or in part to the Primary Committee.

         (ii) Administration of the Discretionary Option Grant and Stock
Issuance Programs with respect to all other persons eligible to participate in
those programs may, at the Board's discretion, be vested in the Primary
Committee or a Secondary Committee, or the Board may retain the power to
administer those programs with respect to all such persons.

         (iii) Administration of the Automatic Option Grant and Director Fee
Option Grant Programs shall be self-executing in accordance with the terms of
those programs.

         B. Each Plan Administrator shall, within the scope of its
administrative jurisdiction under the Plan, have full power and authority
subject to the provisions of the Plan:

         (i) to establish such rules as it may deem appropriate for proper
administration of the Plan, to make all factual determinations, to construe and
interpret the provisions of the Plan and the awards thereunder and to resolve
any and all ambiguities thereunder;

         (ii) to determine, with respect to awards made under the Discretionary
Option Grant and Stock Issuance Programs, which eligible persons are to receive
such awards, the time or times when such awards are to be made, the number of
shares to be covered by each such award, the vesting schedule (if any)
applicable to the award, the status of a granted option as either an Incentive
Option or a Non-Statutory Option and the maximum term for which the option is to
remain outstanding;

         (iii) to amend, modify or cancel any outstanding award with the consent
of the holder or accelerate the vesting of such award; and

         (iv) to take such other discretionary actions as permitted pursuant to
the terms of the applicable program.

                                       2
<PAGE>

Decisions of each Plan Administrator within the scope of its administrative
functions under the Plan shall be final and binding on all parties.

         C. Members of the Primary Committee or any Secondary Committee shall
serve for such period of time as the Board may determine and may be removed by
the Board at any time. The Board may also at any time terminate the functions of
any Secondary Committee and reassume all powers and authority previously
delegated to such committee.

         D. Service on the Primary Committee or the Secondary Committee shall
constitute service as a Board member, and members of each such committee shall
accordingly be entitled to full indemnification and reimbursement as Board
members for their service on such committee. No member of the Primary Committee
or the Secondary Committee shall be liable for any act or omission made in good
faith with respect to the Plan or any options or stock issuances under the Plan.

                                IV. ELIGIBILITY

         A. The persons eligible to participate in the Discretionary Option
Grant and Stock Issuance Programs are as follows:

         (i) Employees,

         (ii) non-employee members of the Board or the board of directors of any
Parent or Subsidiary, and

         (iii) consultants and other independent advisors who provide services
to the Corporation (or any Parent or Subsidiary).

         B. Only Employees who are Section 16 Insiders or other highly
compensated individuals shall be eligible to participate in the Salary
Investment Option Grant Program.

         C. Only non-employee Board members shall be eligible to participate in
the Automatic Option Grant and Director Fee Option Grant Programs.

                          V. STOCK SUBJECT TO THE PLAN

         A. The stock issuable under the Plan shall be shares of authorized but
unissued or reacquired Common Stock, including shares repurchased by the
Corporation on the open market. The maximum number of shares of Common Stock
initially reserved for issuance over the term of the Plan shall not exceed Seven
Million Three Hundred Fifty Thousand (7,350,000) shares. Such reserve shall
consist of (i) the number of shares estimated to remain available for issuance,
as of the Section 12 Registration Date, under the Predecessor Plans, including
the shares subject to the outstanding options to be incorporated into the Plan
and the additional shares which would otherwise be available for future grant,
plus (ii) an increase of Three Million Five Hundred Thousand (3,500,000) shares
authorized by the Board subject to stockholder approval prior to the Section 12
Registration Date.

         B. The number of shares of Common Stock available for issuance under
the Plan shall automatically increase on the first trading day of January each
calendar year during the term of the Plan, beginning with the calendar year
2001, by an amount equal to two percent (2%) of the total number of shares of
Common Stock outstanding on the last trading day in December of the immediately
preceding calendar year, but in no event shall such annual increase exceed One
Million, Seven Hundred Fifty Thousand (1,750,000) shares.

                                       3
<PAGE>

         C. No one person participating in the Plan may receive options,
separately exercisable stock appreciation rights and direct stock issuances for
more than One Million, Seven Hundred Fifty Thousand (1,750,000) shares of Common
Stock in the aggregate per calendar year.

         D. Shares of Common Stock subject to outstanding options (including
options incorporated into this Plan from the Predecessor Plans) shall be
available for subsequent issuance under the Plan to the extent those options
expire, terminate or are cancelled for any reason prior to exercise in full.
Unvested shares issued under the Plan and subsequently repurchased by the
Corporation, at the original exercise or issue price paid per share, pursuant to
the Corporation's repurchase rights under the Plan shall be added back to the
number of shares of Common Stock reserved for issuance under the Plan and shall
accordingly be available for reissuance through one or more subsequent options
or direct stock issuances under the Plan. However, should the exercise price of
an option under the Plan be paid with shares of Common Stock or should shares of
Common Stock otherwise issuable under the Plan be withheld by the Corporation in
satisfaction of the withholding taxes incurred in connection with the exercise
of an option or the vesting of a stock issuance under the Plan, then the number
of shares of Common Stock available for issuance under the Plan shall be reduced
by the gross number of shares for which the option is exercised or which vest
under the stock issuance, and not by the net number of shares of Common Stock
issued to the holder of such option or stock issuance. Shares of Common Stock
underlying one or more stock appreciation rights exercised under the Plan shall
not be available for subsequent issuance.

         E. If any change is made to the Common Stock by reason of any stock
split, stock dividend, recapitalization, combination of shares, exchange of
shares or other change affecting the outstanding Common Stock as a class without
the Corporation's receipt of consideration, appropriate adjustments shall be
made to (i) the maximum number and/or class of securities issuable under the
Plan, (ii) the number and/or class of securities by which the share reserve is
to increase each calendar year pursuant to the automatic share increase
provisions of the Plan, (iii) the number and/or class of securities for which
any one person may be granted options, separately exercisable stock appreciation
rights and direct stock issuances under the Plan per calendar year, (iv) the
number and/or class of securities for which grants are subsequently to be made
under the Automatic Option Grant Program to new and continuing non-employee
Board members, (v) the number and/or class of securities and the exercise price
per share in effect under each outstanding option under the Plan and (vi) the
number and/or class of securities and price per share in effect under each
outstanding option incorporated into this Plan from the Predecessor Plans. Such
adjustments to the outstanding options are to be effected in a manner which
shall preclude the enlargement or dilution of rights and benefits under such
options. The adjustments determined by the Plan Administrator shall be final,
binding and conclusive.

                                       4
<PAGE>

                                   ARTICLE TWO

                       DISCRETIONARY OPTION GRANT PROGRAM

         I. OPTION TERMS

         Each option shall be evidenced by one or more documents in the form
approved by the Plan Administrator; provided, however, that each such document
shall comply with the terms specified below. Each document evidencing an
Incentive Option shall, in addition, be subject to the provisions of the Plan
applicable to such options.

         A. Exercise Price.

         1. The exercise price per share shall be fixed by the Plan
Administrator at the time of the option grant and may be less than, equal to or
greater than the Fair Market Value per share of Common Stock on the option grant
date.

         2. The exercise price shall become immediately due upon exercise of the
option and shall, subject to the provisions of Section II of Article Seven and
the documents evidencing the option, be payable in one or more of the following
forms:

         (i) in cash or check made payable to the Corporation;

         (ii) shares of Common Stock held for the requisite period necessary to
avoid a charge to the Corporation's earnings for financial reporting purposes
and valued at Fair Market Value on the Exercise Date, or

         (iii) to the extent the option is exercised for vested shares, through
a special sale and remittance procedure pursuant to which the Optionee shall
concurrently provide irrevocable instructions to (a) a Corporation-designated
brokerage firm to effect the immediate sale of the purchased shares and remit to
the Corporation, out of the sale proceeds available on the settlement date,
sufficient funds to cover the aggregate exercise price payable for the purchased
shares plus all applicable Federal, state and local income and employment taxes
required to be withheld by the Corporation by reason of such exercise and (b)
the Corporation to deliver the certificates for the purchased shares directly to
such brokerage firm in order to complete the sale.

         Except to the extent such sale and remittance procedure is utilized,
payment of the exercise price for the purchased shares must be made on the
Exercise Date.

         B. Exercise and Term of Options. Each option shall be exercisable at
such time or times, during such period and for such number of shares as shall be
determined by the Plan Administrator and set forth in the documents evidencing
the option. However, no option shall have a term in excess of ten (10) years
measured from the option grant date.

                                       5
<PAGE>

         C. Cessation of Service.

         1. The following provisions shall govern the exercise of any options
outstanding at the time of the Optionee's cessation of Service or death:

         (i) Any option outstanding at the time of the Optionee's cessation of
Service for any reason shall remain exercisable for such period of time
thereafter as shall be determined by the Plan Administrator and set forth in the
documents evidencing the option, but no such option shall be exercisable after
the expiration of the option term.

         (ii) Any option exercisable in whole or in part by the Optionee at the
time of death may be subsequently exercised by his or her Beneficiary.

         (iii) During the applicable post-Service exercise period, the option
may not be exercised in the aggregate for more than the number of vested shares
for which the option is exercisable on the date of the Optionee's cessation of
Service. Upon the expiration of the applicable exercise period or (if earlier)
upon the expiration of the option term, the option shall terminate and cease to
be outstanding for any vested shares for which the option has not been
exercised. However, the option shall, immediately upon the Optionee's cessation
of Service, terminate and cease to be outstanding to the extent the option is
not otherwise at that time exercisable for vested shares.

         (iv) Should the Optionee's Service be terminated for Misconduct or
should the Optionee engage in Misconduct while his or her options are
outstanding, then all such options shall terminate immediately and cease to be
outstanding.

         2. The Plan Administrator shall have complete discretion, exercisable
either at the time an option is granted or at any time while the option remains
outstanding:

         (i) to extend the period of time for which the option is to remain
exercisable following the Optionee's cessation of Service to such period of time
as the Plan Administrator shall deem appropriate, but in no event beyond the
expiration of the option term, and/or

         (ii) to permit the option to be exercised, during the applicable
post-Service exercise period, for one or more additional installments in which
the Optionee would have vested had the Optionee continued in Service.

         D. Stockholder Rights. The holder of an option shall have no
stockholder rights with respect to the shares subject to the option until such
person shall have exercised the option, paid the exercise price and become a
holder of record of the purchased shares.

         E. Repurchase Rights. The Plan Administrator shall have the discretion
to grant options which are exercisable for unvested shares of Common Stock.
Should the Optionee cease Service while holding such unvested shares, the
Corporation shall have the right to repurchase, at the exercise price paid per
share, any or all of those unvested shares. The terms upon which such repurchase
right shall be exercisable (including the period and procedure for exercise and
the appropriate vesting schedule for the purchased shares) shall be established
by the Plan Administrator and set forth in the document evidencing such
repurchase right.

                                       6
<PAGE>

         F. Limited Transferability of Options. During the lifetime of the
Optionee, Incentive Options shall be exercisable only by the Optionee and shall
not be assignable or transferable other than by will or by the laws of
inheritance following the Optionee's death. Non-Statutory Options shall be
subject to the same restrictions, except that a Non-Statutory Option may, to the
extent permitted by the Plan Administrator, be assigned in whole or in part
during the Optionee's lifetime (i) as a gift to one or more members of the
Optionee's immediate family, to a trust in which Optionee and/or one or more
such family members hold more than fifty percent (50%) of the beneficial
interest or to an entity in which more than fifty percent (50%) of the voting
interests are owned by one or more such family members or (ii) pursuant to a
domestic relations order. The terms applicable to the assigned portion shall be
the same as those in effect for the option immediately prior to such assignment
and shall be set forth in such documents issued to the assignee as the Plan
Administrator may deem appropriate.

         Notwithstanding the foregoing, the Optionee may also designate one or
more persons as the beneficiary or beneficiaries of his or her outstanding
options, and those options shall, in accordance with such designation,
automatically be transferred to such beneficiary or beneficiaries upon the
Optionee's death while holding those options. Such beneficiary or beneficiaries
shall take the transferred options subject to all the terms and conditions of
the applicable agreement evidencing each such transferred option, including
(without limitation) the limited time period during which the option may be
exercised following the Optionee's death.

                              II. INCENTIVE OPTIONS

         The terms specified below shall be applicable to all Incentive Options.
Except as modified by the provisions of this Section II, all the provisions of
Articles One, Two and Six shall be applicable to Incentive Options. Options
which are specifically designated as Non-Statutory Options when issued under the
Plan shall not be subject to the terms of this Section II.

         A. Eligibility. Incentive Options may only be granted to Employees.

         B. Exercise Price. The exercise price per share shall not be less than
one hundred percent (100%) of the Fair Market Value per share of Common Stock on
the option grant date.

         C. Dollar Limitation. The aggregate Fair Market Value of the shares of
Common Stock (determined as of the respective date or dates of grant) for which
one or more options granted to any Employee under the Plan (or any other option
plan of the Corporation or any Parent or Subsidiary) may for the first time
become exercisable as Incentive Options during any one calendar year shall not
exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the
Employee holds two (2) or more such options which become exercisable for the
first time in the same calendar year, the foregoing limitation on the
exercisability of such options as Incentive Options shall be applied on the
basis of the order in which such options are granted.

                                       7
<PAGE>

         D. 10% Stockholder. If any Employee to whom an Incentive Option is
granted is a 10% Stockholder, then the exercise price per share shall not be
less than one hundred ten percent (110%) of the Fair Market Value per share of
Common Stock on the option grant date, and the option term shall not exceed five
(5) years measured from the option grant date.

                    III. CHANGE IN CONTROL/HOSTILE TAKE-OVER

         A. Each option outstanding at the time of a Change in Control but not
otherwise fully-vested shall automatically accelerate so that each such option
shall, immediately prior to the effective date of the Change in Control, become
exercisable for all of the shares of Common Stock at the time subject to that
option and may be exercised for any or all of those shares as fully-vested
shares of Common Stock. However, an outstanding option shall not so accelerate
if and to the extent: (i) such option is, in connection with the Change in
Control, assumed or otherwise continued in full force and effect by the
successor corporation (or parent thereof) pursuant to the terms of the Change in
Control, (ii) such option is replaced with a cash incentive program of the
successor corporation which preserves the spread existing at the time of the
Change in Control on the shares of Common Stock for which the option is not
otherwise at that time exercisable and provides for subsequent payout in
accordance with the same vesting schedule applicable to those option shares or
(iii) the acceleration of such option is subject to other limitations imposed by
the Plan Administrator at the time of the option grant. Each option outstanding
at the time of the Change in Control shall terminate as provided in Section
III.C. of this Article Two.

         B. All outstanding repurchase rights shall also terminate
automatically, and the shares of Common Stock subject to those terminated rights
shall immediately vest in full, in the event of any Change in Control, except to
the extent: (i) those repurchase rights are assigned to the successor
corporation (or parent thereof) or otherwise continue in full force and effect
pursuant to the terms of the Change in Control or (ii) such accelerated vesting
is precluded by other limitations imposed by the Plan Administrator at the time
the repurchase right is issued.

         C. Immediately following the consummation of the Change in Control, all
outstanding options shall terminate and cease to be outstanding, except to the
extent assumed by the successor corporation (or parent thereof) or otherwise
expressly continued in full force and effect pursuant to the terms of the Change
in Control.

         D. Each option which is assumed in connection with a Change in Control
shall be appropriately adjusted, immediately after such Change in Control, to
apply to the number and class of securities which would have been issuable to
the Optionee in consummation of such Change in Control had the option been
exercised immediately prior to such Change in Control. Appropriate adjustments
to reflect such Change in Control shall also be made to (i) the exercise price
payable per share under each outstanding option, provided the aggregate exercise
price payable for such securities shall remain the same, (ii) the maximum number
and/or class of securities available for issuance over the remaining term of the
Plan and (iii) the maximum number and/or class of securities for which any one
person may be granted options, separately exercisable stock appreciation rights
and direct stock issuances under the Plan per calendar year. To the extent the
actual holders of the Corporation's outstanding Common Stock receive cash
consideration for their Common Stock in consummation of the Change in Control,
the successor corporation may, in connection with the assumption of the
outstanding options, substitute one or more shares of its own common stock with
a fair market value equivalent to the cash consideration paid per share of
Common Stock in such Change in Control.

                                       8
<PAGE>

         E. The Plan Administrator may at any time provide that one or more
options will automatically accelerate in connection with a Change in Control,
whether or not those options are assumed or otherwise continued in full force
and effect pursuant to the terms of the Change in Control. Any such option shall
accordingly become exercisable, immediately prior to the effective date of such
Change in Control, for all of the shares of Common Stock at the time subject to
that option and may be exercised for any or all of those shares as fully-vested
shares of Common Stock. In addition, the Plan Administrator may at any time
provide that one or more of the Corporation's repurchase rights shall not be
assignable in connection with such Change in Control and shall terminate upon
the consummation of such Change in Control.

         F. The Plan Administrator may at any time provide that one or more
options will automatically accelerate upon an Involuntary Termination of the
Optionee's Service within a designated period (not to exceed eighteen (18)
months) following the effective date of any Change in Control in which those
options do not otherwise accelerate. Any options so accelerated shall remain
exercisable for fully-vested shares until the earlier of (i) the expiration of
the option term or (ii) the expiration of the one (1) year period measured from
the effective date of the Involuntary Termination. In addition, the Plan
Administrator may at any time provide that one or more of the Corporation's
repurchase rights shall immediately terminate upon such Involuntary Termination.

         G. The Plan Administrator may at any time provide that one or more
options will automatically accelerate in connection with a Hostile Take-Over.
Any such option shall become exercisable, immediately prior to the effective
date of such Hostile Take-Over, for all of the shares of Common Stock at the
time subject to that option and may be exercised for any or all of those shares
as fully-vested shares of Common Stock. In addition, the Plan Administrator may
at any time provide that one or more of the Corporation's repurchase rights
shall terminate automatically upon the consummation of such Hostile Take-Over.
Alternatively, the Plan Administrator may condition such automatic acceleration
and termination upon an Involuntary Termination of the Optionee's Service within
a designated period (not to exceed eighteen (18) months) following the effective
date of such Hostile Take-Over. Each option so accelerated shall remain
exercisable for fully-vested shares until the expiration or sooner termination
of the option term.

         H. The portion of any Incentive Option accelerated in connection with a
Change in Control or Hostile Take Over shall remain exercisable as an Incentive
Option only to the extent the applicable One Hundred Thousand Dollar ($100,000)
limitation is not exceeded. To the extent such dollar limitation is exceeded,
the accelerated portion of such option shall be exercisable as a Non-Statutory
Option under the Federal tax laws.

                                       9
<PAGE>

                         IV. STOCK APPRECIATION RIGHTS

         The Plan Administrator may, subject to such conditions as it may
determine, grant to selected Optionees stock appreciation rights which will
allow the holders of those rights to elect between the exercise of the
underlying option for shares of Common Stock and the surrender of that option in
exchange for a distribution from the Corporation in an amount equal to the
excess of (a) the Option Surrender Value of the number of shares for which the
option is surrendered over (b) the aggregate exercise price payable for such
shares. The distribution may be made in shares of Common Stock valued at Fair
Market Value on the option surrender date, in cash, or partly in shares and
partly in cash, as the Plan Administrator shall in its sole discretion deem
appropriate.

                                       10
<PAGE>

                                  Article THREE

                     SALARY INVESTMENT OPTION GRANT PROGRAM

         I. OPTION GRANTS

         The Primary Committee may implement the Salary Investment Option Grant
Program for one or more calendar years beginning after the Underwriting Date and
select the Section 16 Insiders and other highly compensated Employees eligible
to participate in the Salary Investment Option Grant Program for each such
calendar year. Each selected individual who elects to participate in the Salary
Investment Option Grant Program must, prior to the start of each calendar year
of participation, file with the Plan Administrator (or its designate) an
irrevocable authorization directing the Corporation to reduce his or her base
salary for that calendar year by an amount not less than Ten Thousand Dollars
($10,000) nor more than Fifty Thousand Dollars ($50,000). Each individual who
files such a timely election shall be granted an option under the Salary
Investment Grant Program on the first trading day in January for the calendar
year for which the salary reduction is to be in effect.

         II. OPTION TERMS

                  Each option shall be a Non-Statutory Option evidenced by one
or more documents in the form approved by the Plan Administrator; provided,
however, that each such document shall comply with the terms specified below.

         A. Exercise Price.

         1. The exercise price per share shall be thirty-three and one-third
percent (33-1/3%) of the Fair Market Value per share of Common Stock on the
option grant date.

         2. The exercise price shall become immediately due upon exercise of the
option and shall be payable in one or more of the alternative forms authorized
under the Discretionary Option Grant Program. Except to the extent the sale and
remittance procedure specified thereunder is utilized, payment of the exercise
price for the purchased shares must be made on the Exercise Date.

         B. Number of Option Shares. The number of shares of Common Stock
subject to the option shall be determined pursuant to the following formula
(rounded down to the nearest whole number):

                           X = A / (B x 66-2/3%), where

                           X is the number of option shares,

                         A is the dollar amount of the approved reduction in the
                    Optionee's base salary for the calendar year, and

                                       11
<PAGE>

                         B is the Fair Market Value per share of Common Stock on
                    the option grant date.

         C. Exercise and Term of Options. The option shall become exercisable in
a series of twelve (12) successive equal monthly installments upon the
Optionee's completion of each calendar month of Service in the calendar year for
which the salary reduction is in effect. Each option shall have a maximum term
of ten (10) years measured from the option grant date.

         D. Cessation of Service. Each option outstanding at the time of the
Optionee's cessation of Service shall remain exercisable, for any or all of the
shares for which the option is exercisable at the time of such cessation of
Service, until the earlier of (i) the expiration of the option term or (ii) the
expiration of the three (3)-year period following the Optionee's cessation of
Service. To the extent the option is held by the Optionee at the time of his or
her death, the option may be exercised by his or her Beneficiary. However, the
option shall, immediately upon the Optionee's cessation of Service, terminate
and cease to remain outstanding with respect to any and all shares of Common
Stock for which the option is not otherwise at that time exercisable.

                    III. CHANGE IN CONTROL/HOSTILE TAKE-OVER

         A. In the event of any Change in Control or Hostile Take-Over while the
Optionee remains in Service, each outstanding option shall automatically
accelerate so that each such option shall, immediately prior to the effective
date of the Change in Control or Hostile Take-Over, become fully exercisable
with respect to the total number of shares of Common Stock at the time subject
to such option and may be exercised for any or all of those shares as
fully-vested shares of Common Stock. Each such option accelerated in connection
with a Change in Control shall terminate upon the Change in Control, except to
the extent assumed by the successor corporation (or parent thereof) or otherwise
continued in full force and effect pursuant to the terms of the Change in
Control. Each such option accelerated in connection with a Hostile Take-Over
shall remain exercisable until the expiration or sooner termination of the
option term.

         B. Each option which is assumed in connection with a Change in Control
shall be appropriately adjusted to apply to the number and class of securities
which would have been issuable to the Optionee in consummation of such Change in
Control had the option been exercised immediately prior to such Change in
Control. Appropriate adjustments shall also be made to the exercise price
payable per share under each outstanding option, provided the aggregate exercise
price payable for such securities shall remain the same. To the extent the
actual holders of the Corporation's outstanding Common Stock receive cash
consideration for their Common Stock in consummation of the Change in Control,
the successor corporation may, in connection with the assumption of the
outstanding options, substitute one or more shares of its own common stock with
a fair market value equivalent to the cash consideration paid per share of
Common Stock in such Change in Control.

         C. Upon the occurrence of a Hostile Take-Over, the Optionee shall have
a thirty (30)-day period in which to surrender to the Corporation each of his or
her outstanding options. The Optionee shall in return be entitled to a cash
distribution from the Corporation in an amount equal to the excess of (i) the
Option Surrender Value of the shares of Common Stock at the time subject to each
surrendered option (whether or not the Optionee is otherwise at the time vested
in those shares) over (ii) the aggregate exercise price payable for such shares.
Such cash distribution shall be paid within five (5) days following the
surrender of the option to the Corporation.

                                       12
<PAGE>

                              IV. REMAINING TERMS

         The remaining terms of each option granted under the Salary Investment
Option Grant Program shall be the same as the terms in effect for options made
under the Discretionary Option Grant Program.

                                       13
<PAGE>

                                  ARTICLE FOUR

                             STOCK ISSUANCE PROGRAM

I.       STOCK ISSUANCE TERMS

         Shares of Common Stock may be issued under the Stock Issuance Program
through direct and immediate issuances without any intervening options. Shares
of Common Stock may also be issued under the Stock Issuance Program pursuant to
share right awards which entitle the recipients to receive those shares upon the
attainment of designated performance goals or Service requirements. Each such
award shall be evidenced by one or more documents which comply with the terms
specified below.

A.       Purchase Price.

         1. The purchase price per share of Common Stock subject to direct
issuance shall be fixed by the Plan Administrator and may be less than, equal to
or greater than the Fair Market Value per share of Common Stock on the issue
date.

         2. Subject to the provisions of Section II of Article Seven, shares of
Common Stock may be issued under the Stock Issuance Program for any of the
following items of consideration which the Plan Administrator may deem
appropriate in each individual instance:

         (i) cash or check made payable to the Corporation, or

         (ii) past services rendered to the Corporation (or any Parent or
Subsidiary).

B.       Vesting/Issuance Provisions.

         1. The Plan Administrator may issue shares of Common Stock which are
fully and immediately vested upon issuance or which are to vest in one or more
installments over the Participant's period of Service or upon attainment of
specified performance objectives. Alternatively, the Plan Administrator may
issue share right awards which shall entitle the recipient to receive a
specified number of vested shares of Common Stock upon the attainment of one or
more performance goals or Service requirements established by the Plan
Administrator.

         2. Any new, substituted or additional securities or other property
(including money paid other than as a regular cash dividend) which the
Participant may have the right to receive with respect to his or her unvested
shares of Common Stock by reason of any stock dividend, stock split,
recapitalization, combination of shares, exchange of shares or other change
affecting the outstanding Common Stock as a class without the Corporation's
receipt of consideration shall be issued subject to (i) the same vesting
requirements applicable to the Participant's unvested shares of Common Stock and
(ii) such escrow arrangements as the Plan Administrator shall deem appropriate.

                                       14
<PAGE>

         3. The Participant shall have full stockholder rights with respect to
the issued shares of Common Stock, whether or not the Participant's interest in
those shares is vested. Accordingly, the Participant shall have the right to
vote such shares and to receive any regular cash dividends paid on such shares.

         4. Should the Participant cease to remain in Service while holding one
or more unvested shares of Common Stock, or should the performance objectives
not be attained with respect to one or more such unvested shares of Common
Stock, then those shares shall be immediately surrendered to the Corporation for
cancellation, and the Participant shall have no further stockholder rights with
respect to those shares. To the extent the surrendered shares were previously
issued to the Participant for consideration paid in cash or cash equivalent
(including the Participant's purchase-money indebtedness), the Corporation shall
repay to the Participant the cash consideration paid for the surrendered shares
and shall cancel the unpaid principal balance of any outstanding purchase-money
note of the Participant attributable to the surrendered shares.

         5. The Plan Administrator may waive the surrender and cancellation of
one or more unvested shares of Common Stock (or other assets attributable
thereto) which would otherwise occur upon the cessation of the Participant's
Service or the non-attainment of the performance objectives applicable to those
shares. Such waiver shall result in the immediate vesting of the Participant's
interest in the shares of Common Stock as to which the waiver applies. Such
waiver may be effected at any time, whether before or after the Participant's
cessation of Service or the attainment or non-attainment of the applicable
performance objectives.

         6. Outstanding share right awards shall automatically terminate, and no
shares of Common Stock shall actually be issued in satisfaction of those awards,
if the performance goals or Service requirements established for such awards are
not attained. The Plan Administrator, however, shall have the authority to issue
shares of Common Stock in satisfaction of one or more outstanding share right
awards as to which the designated performance goals or Service requirements are
not attained.

                    II. CHANGE IN CONTROL/HOSTILE TAKE-OVER

         A. All of the Corporation's outstanding repurchase rights shall
terminate automatically, and all the shares of Common Stock subject to those
terminated rights shall immediately vest in full, in the event of any Change in
Control, except to the extent (i) those repurchase rights are assigned to the
successor corporation (or parent thereof) or otherwise continue in full force
and effect pursuant to the terms of the Change in Control or (ii) such
accelerated vesting is precluded by other limitations imposed by the Plan
Administrator at the time the repurchase right is issued.

         B. The Plan Administrator may at any time provide for the automatic
termination of one or more of those outstanding repurchase rights and the
immediate vesting of the shares of Common Stock subject to those terminated
rights upon (i) a Change in Control or Hostile Take-Over or (ii) an Involuntary
Termination of the Participant's Service within a designated period (not to
exceed eighteen (18) months) following the effective date of any Change in
Control or Hostile Take-Over in which those repurchase rights are assigned to
the successor corporation (or parent thereof) or otherwise continue in full
force and effect.

                                       15
<PAGE>

                           III. SHARE ESCROW/LEGENDS

         Unvested shares may, in the Plan Administrator's discretion, be held in
escrow by the Corporation until the Participant's interest in such shares vests
or may be issued directly to the Participant with restrictive legends on the
certificates evidencing those unvested shares.

                                       16
<PAGE>

                                  ARTICLE FIVE

                         AUTOMATIC OPTION GRANT PROGRAM

I.       OPTION TERMS

         A. Grant Dates. Options shall be made on the dates specified below:

         1. Each individual who is first elected or appointed as a non-employee
Board member at any time on or after the Plan Effective Date shall automatically
be granted, on the date of such initial election or appointment, a Non-Statutory
Option to purchase Thirty-five Thousand (35,000) shares of Common Stock,
provided that individual has not previously been in the employ of the
Corporation (or any Parent or Subsidiary).

         2. Each individual who is to continue to serve as a non-employee Board
member shall automatically be granted a Non-Statutory Option to purchase Five
Thousand Two Hundred Fifty (5,250) shares of Common Stock on the date of each
Annual Stockholders Meeting beginning with the first Annual Meeting held after
the initial option grant made to such individual under Paragraph I.A.1 of this
Article Five is fully vested, provided that an individual who is a 3%
Stockholder shall not be eligible to receive any option grants under this
Paragraph I.A.2.

         B. Exercise Price.

         1. The exercise price per share shall be equal to one hundred percent
(100%) of the Fair Market Value per share of Common Stock on the option grant
date.

         2. The exercise price shall be payable in one or more of the
alternative forms authorized under the Discretionary Option Grant Program.
Except to the extent the sale and remittance procedure specified thereunder is
utilized, payment of the exercise price for the purchased shares must be made on
the Exercise Date.

         C. Option Term. Each option shall have a term of ten (10) years
measured from the option grant date.

         D. Exercise and Vesting of Options. Each option shall be immediately
exercisable for any or all of the option shares. However, any unvested shares
purchased under the option shall be subject to repurchase by the Corporation, at
the exercise price paid per share, upon the Optionee's cessation of Board
service prior to vesting in those shares. Each initial 35,000-share option shall
vest, and the Corporation's repurchase right shall lapse, in a series of two (2)
successive equal annual installments over the Optionee's period of continued
service as a Board member, with the first such installment to vest upon the
Optionee's completion of one (1) year of Board service measured from the option
grant date. Each annual 5,250-share option shall vest, and the Corporation's
repurchase right shall lapse, upon the Optionee's completion of one (1) year of
Board service measured from the option grant date.

                                       17
<PAGE>

         E. Cessation of Board Service. The following provisions shall govern
the exercise of any options outstanding at the time of the Optionee's cessation
of Board service:

(i)      Any option outstanding at the time of the Optionee's cessation of Board
         service for any reason shall remain exercisable for a twelve (12)-month
         period following the date of such cessation of Board service, but in no
         event shall such option be exercisable after the expiration of the
         option term.

(ii)     Any option exercisable in whole or in part by the Optionee at the time
         of death may be subsequently exercised by his or her Beneficiary.

(iii)    Following the Optionee's cessation of Board service, the option may not
         be exercised in the aggregate for more than the number of shares for
         which the option was exercisable on the date of such cessation of Board
         service. Upon the expiration of the applicable exercise period or (if
         earlier) upon the expiration of the option term, the option shall
         terminate and cease to be outstanding for any vested shares for which
         the option has not been exercised. However, the option shall,
         immediately upon the Optionee's cessation of Board service, terminate
         and cease to be outstanding for any and all shares for which the option
         is not otherwise at that time exercisable.

(iv)     However, should the Optionee cease to serve as a Board member by reason
         of death or Permanent Disability, then all shares at the time subject
         to the option shall immediately vest so that such option may, during
         the twelve (12)-month exercise period following such cessation of Board
         service, be exercised for all or any portion of those shares as
         fully-vested shares of Common Stock.

                    II. CHANGE IN CONTROL/HOSTILE TAKE-OVER

         A. In the event of any Change in Control or Hostile Take-Over, the
shares of Common Stock at the time subject to each outstanding option but not
otherwise vested shall automatically vest in full so that each such option may,
immediately prior to the effective date of such Change in Control or Hostile
Take-Over, became fully exercisable for all of the shares of Common Stock at the
time subject to such option and maybe exercised for all or any of those shares
as fully-vested shares of Common Stock. Each such option accelerated in
connection with a Change in Control shall terminate upon the Change in Control,
except to the extent assumed by the successor corporation (or parent thereof) or
otherwise continued in full force and effect pursuant to the terms of the Change
in Control. Each such option accelerated in connection with a Hostile Take-Over
shall remain exercisable until the expiration or sooner termination of the
option term.

         B. All outstanding repurchase rights shall automatically terminate and
the shares of Common Stock subject to those terminated rights shall immediately
vest in full, in the event of any Change in Control or Hostile Take-Over.

         C. Upon the occurrence of a Hostile Take-Over, the Optionee shall have
a thirty (30)-day period in which to surrender to the Corporation each of his or
her outstanding options. The Optionee shall in return be entitled to a cash
distribution from the Corporation in an amount equal to the excess of (i) the
Option Surrender Value of the shares of Common Stock at the time subject to each
surrendered option (whether or not the option is otherwise at the time
exercisable for those shares) over (ii) the aggregate exercise price payable for
such shares. Such cash distribution shall be paid within five (5) days following
the surrender of the option to the Corporation.

                                       18
<PAGE>

         D. Each option which is assumed in connection with a Change in Control
shall be appropriately adjusted to apply to the number and class of securities
which would have been issuable to the Optionee in consummation of such Change in
Control had the option been exercised immediately prior to such Change in
Control. Appropriate adjustments shall also be made to the exercise price
payable per share under each outstanding option, provided the aggregate exercise
price payable for such securities shall remain the same. To the extent the
actual holders of the Corporation's outstanding Common Stock receive cash
consideration for their Common Stock in consummation of the Change in Control,
the successor corporation may, in connection with the assumption of the
outstanding options, substitute one or more shares of its own common stock with
a fair market value equivalent to the cash consideration paid per share of
Common Stock in such Change in Control.

                              III. REMAINING TERMS

         The remaining terms of each option granted under the Automatic Option
Grant Program shall be the same as the terms in effect for options made under
the Discretionary Option Grant Program.

                                       19
<PAGE>

                                   ARTICLE SIX

                        DIRECTOR FEE OPTION GRANT PROGRAM

         I. OPTION GRANTS

         The Board may implement the Director Fee Option Grant Program as of the
first day of any calendar year beginning after the Underwriting Date. Upon such
implementation of the Program, each non-employee Board member may elect to apply
all or any portion of the annual retainer fee otherwise payable in cash for his
or her service on the Board to the acquisition of a special option grant under
this Director Fee Option Grant Program. Such election must be filed with the
Corporation's Chief Financial Officer prior to the first day of the calendar
year for which the election is to be in effect. Each non-employee Board member
who files such a timely election with respect to the annul retainer fee shall
automatically be granted an option under this Director Fee Option Grant Program
on the first trading day in January in the calendar year for which that fee
would otherwise be payable.

         II. OPTION TERMS

         Each option shall be a Non-Statutory Option governed by the terms and
conditions specified below.

A.       Exercise Price.

         1. The exercise price per share shall be thirty-three and one-third
percent (33-1/3%) of the Fair Market Value per share of Common Stock on the
option grant date.

         2. The exercise price shall become immediately due upon exercise of the
option and shall be payable in one or more of the alternative forms authorized
under the Discretionary Option Grant Program. Except to the extent the sale and
remittance procedure specified thereunder is utilized, payment of the exercise
price for the purchased shares must be made on the Exercise Date.

         B. Number of Option Shares. The number of shares of Common Stock
subject to the option shall be determined pursuant to the following formula
(rounded down to the nearest whole number):

                           X = A / (B x 66-2/3%), where

                           X is the number of option shares,

                    A    is the portion of the annual retainer fee subject to
                         the non-employee Board member's election, and

                    B    is the Fair Market Value per share of Common Stock on
                         the option grant date.

                                       20
<PAGE>

         C. Exercise and Term of Options. The option shall become exercisable in
a series of twelve (12) successive equal monthly installments upon the
Optionee's completion of each month of Board service during the calendar year in
which the option is granted. Each option shall have a maximum term of ten (10)
years measured from the option grant date.

         D. Cessation of Board Service. Should the Optionee cease Board service
for any reason (other than death or Permanent Disability) while holding one or
more options, then each such option shall remain exercisable, for any or all of
the shares for which the option is exercisable at the time of such cessation of
Board service, until the earlier of (i) the expiration of the ten (10)-year
option term or (ii) the expiration of the three (3)-year period measured from
the date of such cessation of Board service. However, each option held by the
Optionee at the time of such cessation of Board service shall immediately
terminate and cease to remain outstanding with respect to any and all shares of
Common Stock for which the option is not otherwise at that time exercisable.

         E. Death or Permanent Disability. Should the Optionee's service as a
Board member cease by reason of death or Permanent Disability, then each option
held by such Optionee shall immediately become exercisable for all the shares of
Common Stock at the time subject to that option, and the option may be exercised
for any or all of those shares as fully-vested shares until the earlier of (i)
the expiration of the ten (10)-year option term or (ii) the expiration of the
three (3)-year period measured from the date of such cessation of Board service.

         Should the Optionee die after cessation of Board service but while
holding one or more options, then each such option may be exercised, for any or
all of the shares for which the option is exercisable at the time of the
Optionee's cessation of Board service (less any shares subsequently purchased by
Optionee prior to death), by the Optionee's Beneficiary. Such right of exercise
shall lapse, and the option shall terminate, upon the earlier of (i) the
expiration of the ten (10)-year option term or (ii) the three (3)-year period
measured from the date of the Optionee's cessation of Board service.

                    III. CHANGE IN CONTROL/HOSTILE TAKE-OVER

         A. In the event of any Change in Control or Hostile Take-Over while the
Optionee remains in Board service, each outstanding option held by such Optionee
shall automatically accelerate so that each such option shall, immediately prior
to the effective date of the Change in Control or Hostile Take-Over, become
fully exercisable with respect to the total number of shares of Common Stock at
the time subject to such option and may be exercised for any or all of those
shares as fully-vested shares of Common Stock. Each such option accelerated in
connection with a Change in Control shall terminate upon the Change in Control,
except to the extent assumed by the successor corporation (or parent thereof) or
otherwise expressly continued in full force and effect pursuant to the terms of
the Change in Control. Each such option accelerated in connection with a Hostile
Take-Over shall remain exercisable until the expiration or sooner termination of
the option term.

                                       21
<PAGE>
         B. Upon the occurrence of a Hostile Take-Over, the Optionee shall have
a thirty (30)-day period in which to surrender to the Corporation each of his or
her outstanding options. The Optionee shall in return be entitled to a cash
distribution from the Corporation in an amount equal to the excess of (i) the
Option Surrender Value of the shares of Common Stock at the time subject to each
surrendered option (whether or not the Optionee is otherwise at the time vested
in those shares) over (ii) the aggregate exercise price payable for such shares.
Such cash distribution shall be paid within five (5) days following the
surrender of the option to the Corporation.

         C. Each option which is assumed in connection with a Change in Control
shall be appropriately adjusted, immediately after such Change in Control, to
apply to the number and class of securities which would have been issuable to
the Optionee in consummation of such Change in Control had the option been
exercised immediately prior to such Change in Control. Appropriate adjustments
shall also be made to the exercise price payable per share under each
outstanding option, provided the aggregate exercise price payable for such
securities shall remain the same. To the extent the actual holders of the
Corporation's outstanding Common Stock receive cash consideration for their
Common Stock in consummation of the Change in Control, the successor corporation
may, in connection with the assumption of the outstanding options under the
Director Fee Option Grant Program, substitute one or more shares of its own
common stock with a fair market value equivalent to the cash consideration paid
per share of Common Stock in such Change in Control.

                              IV. REMAINING TERMS

         The remaining terms of each option granted under this Director Fee
Option Grant Program shall be the same as the terms in effect for options made
under the Discretionary Option Grant Program.

                                       22
<PAGE>

                                  ARTICLE SEVEN
                                  MISCELLANEOUS

                          I. NO IMPAIRMENT OF AUTHORITY

         Outstanding awards shall in no way affect the right of the Corporation
to adjust, reclassify, reorganize or otherwise change its capital or business
structure or to merge, consolidate, dissolve, liquidate or sell or transfer all
or any part of its business or assets.

                                 II. FINANCING

         The Plan Administrator may permit any Optionee or Participant to pay
the option exercise price under the Discretionary Option Grant Program or the
purchase price of shares issued under the Stock Issuance Program by delivering a
full-recourse, interest bearing promissory note payable in one or more
installments. The terms of any such promissory note (including the interest rate
and the terms of repayment) shall be established by the Plan Administrator in
its sole discretion. In no event may the maximum credit available to the
Optionee or Participant exceed the sum of (i) the aggregate option exercise
price or purchase price payable for the purchased shares (less the par value of
such shares) plus (ii) any Federal, state and local income and employment tax
liability incurred by the Optionee or the Participant in connection with the
option exercise or share purchase.

                              III. TAX WITHHOLDING

         A. The Corporation's obligation to deliver shares of Common Stock upon
the exercise of options or the issuance or vesting of such shares under the Plan
shall be subject to the satisfaction of all applicable Federal, state and local
income and employment tax withholding requirements.

         B. The Plan Administrator may, in its discretion, provide any or all
holders of Non-Statutory Options or unvested shares of Common Stock under the
Plan with the right to use shares of Common Stock in satisfaction of all or part
of the Withholding Taxes incurred by such holders in connection with the
exercise of their options or the vesting of their shares. Such right may be
provided to any such holder in either or both of the following formats:

         Stock Withholding: The election to have the Corporation withhold, from
the shares of Common Stock otherwise issuable upon the exercise of such
Non-Statutory Option or the vesting of such shares, a portion of those shares
with an aggregate Fair Market Value equal to the percentage of the Withholding
Taxes (not to exceed one hundred percent (100%)) designated by the holder.

         Stock Delivery: The election to deliver to the Corporation, at the time
the Non-Statutory Option is exercised or the shares vest, one or more shares of
Common Stock previously acquired by such holder (other than in connection with
the option exercise or share vesting triggering the Withholding Taxes) with an
aggregate Fair Market Value equal to the percentage of the Taxes (not to exceed
one hundred percent (100%)) designated by the holder.

                                       23
<PAGE>

                    IV. EFFECTIVE DATE AND TERM OF THE PLAN

         A. The Plan shall become effective immediately upon the Plan Effective
Date. However, the Salary Investment Option Grant, the Stock Issuance Program
and Director Fee Option Grant Programs shall not be implemented until such time
as the Primary Committee or the Board may deem appropriate. Options may be
granted under the Discretionary Option Grant Program at any time on or after the
Plan Effective Date. However, no options granted under the Plan may be
exercised, and no shares shall be issued under the Plan, until the Plan is
approved by the Corporation's stockholders. If such stockholder approval is not
obtained within twelve (12) months after the Plan Effective Date, then all
options previously granted under this Plan shall terminate and cease to be
outstanding, and no further options shall be granted and no shares shall be
issued under the Plan.

         B. The Plan shall serve as the successor to the Predecessor Plans, and
no further options or direct stock issuances shall be made under the Predecessor
Plans after the Section 12 Registration Date. All options outstanding under the
Predecessor Plans on the Section 12 Registration Date shall be incorporated into
the Plan at that time and shall be treated as outstanding options under the
Plan. However, each outstanding option so incorporated shall continue to be
governed solely by the terms of the documents evidencing such option, and no
provision of the Plan shall be deemed to affect or otherwise modify the rights
or obligations of the holders of such incorporated options with respect to their
acquisition of shares of Common Stock.

         C. One or more provisions of the Plan, including (without limitation)
the option/vesting acceleration provisions of Article Two relating to Changes in
Control, may, in the Plan Administrator's discretion, be extended to one or more
options incorporated from the Predecessor Plans which do not otherwise contain
such provisions.

         D. The Plan shall terminate upon the earliest of (i) January 25, 2010,
(ii) the date on which all shares available for issuance under the Plan shall
have been issued as fully-vested shares or (iii) the termination of all
outstanding options in connection with a Change in Control. Upon such plan
termination, all outstanding options and unvested stock issuances shall
thereafter continue to have force and effect in accordance with the provisions
of the documents evidencing such grants or issuances.

                            V. AMENDMENT OF THE PLAN

         A. The Board shall have complete and exclusive power and authority to
amend or modify the Plan in any or all respects. However, no such amendment or
modification shall adversely affect the rights and obligations with respect to
stock options or unvested stock issuances at the time outstanding under the Plan
unless the Optionee or the Participant consents to such amendment or
modification. In addition, certain amendments may require stockholder approval
pursuant to applicable laws or regulations.

                                       24
<PAGE>

         B. Options to purchase shares of Common Stock may be granted under the
Discretionary Option Grant and Salary Investment Option Grant Programs and
shares of Common Stock may be issued under the Stock Issuance Program that are
in each instance in excess of the number of shares then available for issuance
under the Plan, provided any excess shares actually issued under those programs
shall be held in escrow until there is obtained stockholder approval of an
amendment sufficiently increasing the number of shares of Common Stock available
for issuance under the Plan. If such stockholder approval is not obtained within
twelve (12) months after the date the first such excess issuances are made, then
(i) any unexercised options granted on the basis of such excess shares shall
terminate and cease to be outstanding and (ii) the Corporation shall promptly
refund to the Optionees and the Participants the exercise or purchase price paid
for any excess shares issued under the Plan and held in escrow, together with
interest (at the applicable Short Term Federal Rate) for the period the shares
were held in escrow, and such shares shall thereupon be automatically cancelled
and cease to be outstanding.

                              VI. USE OF PROCEEDS

         Any cash proceeds received by the Corporation from the sale of shares
of Common Stock under the Plan shall be used for general corporate purposes.

                           VII. REGULATORY APPROVALS

         A. The implementation of the Plan, the granting of any stock option
under the Plan and the issuance of any shares of Common Stock (i) upon the
exercise of any granted option or (ii) under the Stock Issuance Program shall be
subject to the Corporation's procurement of all approvals and permits required
by regulatory authorities having jurisdiction over the Plan, the stock options
granted under it and the shares of Common Stock issued pursuant to it.

         B. No shares of Common Stock or other assets shall be issued or
delivered under the Plan unless and until there shall have been compliance with
all applicable requirements of Federal and state securities laws, including the
filing and effectiveness of the Form S-8 registration statement for the shares
of Common Stock issuable under the Plan, and all applicable listing requirements
of any stock exchange (or the Nasdaq National Market, if applicable) on which
Common Stock is then listed for trading.

                       VIII. NO EMPLOYMENT/SERVICE RIGHTS

         Nothing in the Plan shall confer upon the Optionee or the Participant
any right to continue in Service for any period of specific duration or
interfere with or otherwise restrict in any way the rights of the Corporation
(or any Parent or Subsidiary employing or retaining such person) or of the
Optionee or the Participant, which rights are hereby expressly reserved by each,
to terminate such person's Service at any time for any reason, with or without
cause.

                                       25
<PAGE>

                                    APPENDIX

         The following definitions shall be in effect under the Plan:

         A. Automatic Option Grant Program shall mean the automatic option grant
program in effect under the Plan.

         B. Beneficiary shall mean, in the event the Plan Administrator
implements a beneficiary designation procedure, the person designated by an
Optionee or Participant, pursuant to such procedure, to succeed to such person's
rights under any outstanding awards held by him or her at the time of death. In
the absence of such designation or procedure, the Beneficiary shall be the
personal representative of the estate of the Optionee or Participant or the
person or persons to whom the award is transferred by will or the laws of
inheritance.

         C. Board shall mean the Corporation's Board of Directors.

         D. Change in Control shall mean a change in ownership or control of the
Corporation effected through any of the following transactions:

          (i) a merger, consolidation or reorganization approved by the
     Corporation's stockholders, unless securities representing more than fifty
     percent (50%) of the total combined voting power of the voting securities
     of the successor corporation are immediately thereafter beneficially owned,
     directly or indirectly and in substantially the same proportion, by the
     persons who beneficially owned the Corporation's outstanding voting
     securities immediately prior to such transaction,

          (ii) any stockholder-approved transfer or other disposition of all or
     substantially all of the Corporation's assets, or

          (iii) the acquisition, directly or indirectly by any person or related
     group of persons (other than the Corporation or a person that directly or
     indirectly controls, is controlled by, or is under common control with, the
     Corporation), of beneficial ownership (within the meaning of Rule 13d-3 of
     the 1934 Act) of securities possessing more than fifty percent (50%) of the
     total combined voting power of the Corporation's outstanding securities
     pursuant to a tender or exchange offer made directly to the Corporation's
     stockholders which the Board recommends such stockholders accept.

         E. Code shall mean the Internal Revenue Code of 1986, as amended.

         F. Common Stock shall mean the Corporation's common stock.

         G. Corporation shall mean Register.com, Inc., a Delaware corporation,
and any corporate successor to all or substantially all of the assets or voting
stock of Register.com, Inc. which shall by appropriate action adopt the Plan.

                                       A-1
<PAGE>

         H. Director Fee Option Grant Program shall mean the director fee option
grant program in effect under the Plan.

         I. Discretionary Option Grant Program shall mean the discretionary
option grant program in effect under the Plan.

         J. Employee shall mean an individual who is in the employ of the
Corporation (or any Parent or Subsidiary), subject to the control and direction
of the employer entity as to both the work to be performed and the manner and
method of performance.

         K. Exercise Date shall mean the date on which the Corporation shall
have received written notice of the option exercise.

         L. Fair Market Value per share of Common Stock on any relevant date
shall be determined in accordance with the following provisions:

          (i) If the Common Stock is at the time traded on the Nasdaq National
     Market, then the Fair Market Value shall be the closing selling price per
     share of Common Stock on the date in question, as such price is reported on
     the Nasdaq National Market or any successor system and in The Wall Street
     Journal. If there is no closing selling price for the Common Stock on the
     date in question, then the Fair Market Value shall be the closing selling
     price on the last preceding date for which such quotation exists.

          (ii) If the Common Stock is at the time listed on any Stock Exchange,
     then the Fair Market Value shall be the closing selling price per share of
     Common Stock on the date in question on the Stock Exchange determined by
     the Plan Administrator to be the primary market for the Common Stock, as
     such price is officially quoted in the composite tape of transactions on
     such exchange and reported in The Wall Street Journal. If there is no
     closing selling price for the Common Stock on the date in question, then
     the Fair Market Value shall be the closing selling price on the last
     preceding date for which such quotation exists.

          (iii) For purposes of any option grants made on the Underwriting Date,
     the Fair Market Value shall be deemed to be equal to the price per share at
     which the Common Stock is to be sold in the initial public offering
     pursuant to the Underwriting Agreement.

          (iv) For purposes of any options made prior to the Underwriting Date,
     the Fair Market Value shall be determined by the Plan Administrator, after
     taking into account such factors as it deems appropriate.

         M. Hostile Take-Over shall mean:

          (i) the acquisition, directly or indirectly, by any person or related
     group of persons (other than the Corporation or a person that directly or
     indirectly controls, is controlled by, or is under common control with, the
     Corporation) of beneficial ownership (within the meaning of Rule 13d-3 of
     the 1934 Act) of securities possessing more than fifty percent (50%) of the
     total combined voting power of the Corporation's outstanding securities
     pursuant to a tender or exchange offer made directly to the Corporation's
     stockholders which the Board does not recommend such stockholders to
     accept, or

                                       A-2
<PAGE>

          (ii) a change in the composition of the Board over a period of
     thirty-six (36) consecutive months or less such that a majority of the
     Board members ceases, by reason of one or more contested elections for
     Board membership, to be comprised of individuals who either (A) have been
     Board members continuously since the beginning of such period or (B) have
     been elected or nominated for election as Board members during such period
     by at least a majority of the Board members described in clause (A) who
     were still in office at the time the Board approved such election or
     nomination.

         N. Incentive Option shall mean an option which satisfies the
requirements of Code Section 422.

         O. Involuntary Termination shall mean the termination of the Service of
any individual which occurs by reason of:

          (i) such individual's involuntary dismissal or discharge by the
     Corporation for reasons other than Misconduct, or

          (ii) such individual's voluntary resignation following (A) a change in
     his or her position with the Corporation or Parent or Subsidiary employing
     the individual which materially reduces his or her duties and
     responsibilities or the level of management to which he or she reports, (B)
     a reduction in his or her level of compensation (including base salary,
     fringe benefits and target bonus under any corporate-performance based
     bonus or incentive programs) by more than fifteen percent (15%) or (C) a
     relocation of such individual's place of employment by more than fifty (50)
     miles, provided and only if such change, reduction or relocation is
     effected by the Corporation without the individual's consent.

         P. Misconduct shall mean the commission of any act of fraud,
embezzlement or dishonesty by the Optionee or Participant, any unauthorized use
or disclosure by such person of confidential information or trade secrets of the
Corporation (or any Parent or Subsidiary), or any intentional wrongdoing by such
person, whether by omission or commission, which adversely affects the business
or affairs of the Corporation (or any Parent or Subsidiary) in a material
manner. This shall not limit the grounds for the dismissal or discharge of any
person in the Service of the Corporation (or any Parent or Subsidiary).

         Q. 1934 Act shall mean the Securities Exchange Act of 1934, as amended.

         R. Non-Statutory Option shall mean an option not intended to satisfy
the requirements of Code Section 422.

         S. Option Surrender Value shall mean the Fair Market Value per share of
Common Stock on the date the option is surrendered to the Corporation or, in the
event of a Hostile Take-Over, effected through a tender offer, the highest
reported price per share of Common Stock paid by the tender offeror in effecting
such Hostile Take-Over, if greater. However, if the surrendered option is an
Incentive Option, the Option Surrender Value shall not exceed the Fair Market
Value per share.

                                       A-3
<PAGE>

         T. Optionee shall mean any person to whom an option is granted under
the Discretionary Option Grant, Salary Investment Option Grant, Automatic Option
Grant or Director Fee Option Grant Program.

         U. Parent shall mean any corporation (other than the Corporation) in an
unbroken chain of corporations ending with the Corporation, provided each
corporation in the unbroken chain (other than the Corporation) owns, at the time
of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

         V. Participant shall mean any person who is issued shares of Common
Stock under the Stock Issuance Program.

         W. Permanent Disability or Permanently Disabled shall mean the
inability of the Optionee or the Participant to engage in any substantial
gainful activity by reason of any medically determinable physical or mental
impairment expected to result in death or to be of continuous duration of twelve
(12) months or more. However, solely for purposes of the Automatic Option Grant
and Director Fee Option Grant Programs, Permanent Disability or Permanently
Disabled shall mean the inability of the non-employee Board member to perform
his or her usual duties as a Board member by reason of any medically
determinable physical or mental impairment expected to result in death or to be
of continuous duration of twelve (12) months or more.

         X. Plan shall mean the Corporation's 2000 Stock Incentive Plan, as set
forth in this document.

         Y. Plan Administrator shall mean the particular entity, whether the
Primary Committee, the Board or the Secondary Committee, which is authorized to
administer the Discretionary Option Grant, Salary Investment Option Grant and
Stock Issuance Programs with respect to one or more classes of eligible persons,
to the extent such entity is carrying out its administrative functions under
those programs with respect to the persons under its jurisdiction. However, the
Primary Committee shall have the plenary authority to make all factual
determinations and to construe and interpret any and all ambiguities under the
Plan to the extent such authority is not otherwise expressly delegated to any
other Plan Administrator.

         Z. Plan Effective Date shall mean January 26, 2000, the date on which
the Plan was adopted by the Board.

         AA. Predecessor Plans shall mean the Corporation's pre-existing 1997
Stock Option Plan and 1999 Stock Option Plan in effect immediately prior to the
Plan Effective Date hereunder.

                                       A-4
<PAGE>

         BB. Primary Committee shall mean the committee of two (2) or more
non-employee Board members appointed by the Board to administer the
Discretionary Option Grant and Stock Issuance Programs with respect to Section
16 Insiders and to administer the Salary Investment Option Grant Program with
respect to all eligible individuals.

         CC. Salary Investment Option Grant Program shall mean the salary
investment grant program in effect under the Plan.

         DD. Secondary Committee shall mean a committee of one (1) or more Board
members appointed by the Board to administer the Discretionary Option Grant and
Stock Issuance Programs with respect to eligible persons other than Section 16
Insiders.

         EE. Section 12 Registration Date shall mean the date on which the
Common Stock is first registered under Section 12(g) of the 1934 Act.

         FF. Section 16 Insider shall mean an officer or director of the
Corporation subject to the short-swing profit liabilities of Section 16 of the
1934 Act.

         GG. Service shall mean the performance of services for the Corporation
(or any Parent or Subsidiary) by a person in the capacity of an Employee, a
non-employee member of the board of directors or a consultant or independent
advisor, except to the extent otherwise specifically provided in the documents
evidencing the option grant or stock issuance.

         HH. Stock Exchange shall mean either the American Stock Exchange or the
New York Stock Exchange.

         II. Stock Issuance Program shall mean the stock issuance program in
effect under the Plan.

         JJ. Subsidiary shall mean any corporation (other than the Corporation)
in an unbroken chain of corporations beginning with the Corporation, provided
each corporation (other than the last corporation) in the unbroken chain owns,
at the time of the determination, stock possessing fifty percent (50%) or more
of the total combined voting power of all classes of stock in one of the other
corporations in such chain.

         KK. 10% Stockholder shall mean the owner of stock (as determined under
Code Section 424(d)) possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Corporation (or any Parent
or Subsidiary).

         LL. 3% Stockholder shall mean a non-employee Board member who, directly
or indirectly, owns stock (as determined under Code Section 424(d)) possessing
at least three percent (3%) of the total combined voting power of the
outstanding securities of the Corporation (or any Parent or Subsidiary) or is
affiliated with or is a representative of such a three percent (3%) or greater
stockholder.

         MM. Underwriting Agreement shall mean the agreement between the
Corporation and the underwriter or underwriters managing the initial public
offering of the Common Stock.

                                       A-5
<PAGE>

         NN. Underwriting Date shall mean the date on which the Underwriting
Agreement is executed and priced in connection with an initial public offering
of the Common Stock.

         OO. Withholding Taxes shall mean the Federal, state and local income
and employment withholding tax liabilities to which the holder of Non-Statutory
Options or unvested shares of Common Stock may become subject in connection with
the exercise of those options or the vesting of those shares.

                                       A-6

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