Document:

EXHIBIT 10.39

                                      LEASE

                      M. PARISI SON CONSTRUCTION CO., INC.,
                                   AS LANDLORD

                            FASHION MARKETING, INC.,
                                    AS TENANT

                          Premises: 150-15 183rd Street
                                    Springfield Gardens, New York

                                    as of April 28, 2000

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      THIS LEASE (the "Lease") is made and entered into as of this 28 day of
April, 2000, by and between M. PARISI & SON CONSTRUCTION CO., INC., a New York
Corporation with its principal place of business located at 54-65 48th Street,
Maspeth, New York 11378 ("Landlord) and FASHION MARKETING, INC., a New Jersey
corporation, with offices at 150-15 183 Street, Springfield Gardens, New York
("Tenant').

                              W I T N E S S E T H:

      Subject to the terms, provisions, and conditions of this Lease, and each
in consideration of the duties, covenants, and obligations of the other
hereunder, Landlord does hereby lease, demise, and let unto Tenant and Tenant
does hereby lease from Landlord the Premises (as hereinafter defined), subject
to the easements, burdens, and encumbrances set forth in Exhibit A.

                                    ARTICLE I

                                   DEFINITIONS

      1.1 DEFINITIONS. For purposes of this Lease, the following terms shall
have the meanings respectively indicated:

      "ADDITIONAL RENTAL" shall mean all sums, liabilities, obligations and
other amounts, in addition to Base Monthly Rental, which Tenant is required to
pay or discharge pursuant to any provision of this Lease, including, without
limitation, Article V, Article VI and Article IX, together with any interest,
late charge or other sum which may be added to the sum, liability obligation or
other amount owed pursuant to this Lease.

      "BASE RENTAL" shall be defined as the annual rental payable to Landlord by
Tenant in a given Lease Year pursuant to Section 3.1 below.

      "BUILDING" means that certain approximately 50,500 square feet, one-story
warehouse/office building located upon the Land, the Plans and Specifications of
which or copies thereof will be delivered to Tenant simultaneously with, and/or
prior to the execution of this Lease.

      "DEFAULT NOTICE" shall mean the written notice delivered to the defaulting
party by the non-defaulting party specifying the defaults that have occurred.

      "EASEMENT" shall mean that Agreement dated June 12, 1979 among New York
City Public Development Corporation, Landlord, Airborne Freight Corporation, The
Long Island savings Bank, Profit by Air, Inc., East River Savings Bank and Emery
Air Freight Corporation, recorded on July 17, 1979 in the office of the City
Register in Queens County in Reel 1178 at page 1930.

      "INTEREST RATE" or "INTEREST" shall mean the prime interest rate as
published daily in the Wall Street Journal plus four (4%) percent or the highest
maximum rate allowed by law, whichever is less.

      "LAND" means that certain tract or parcel of real property lying and being
situated in Queens County, City and State of New York, as depicted on Exhibit
A-1, upon which the Building is located.

      "LANDLORD'S MORTGAGEE" shall mean any mortgagee of Landlord's leasehold
interest in the Building and/or in the Land.

      "LEASE" OR "AGREEMENT" shall mean this Lease and all Exhibits attached
hereto, which are incorporated herein by reference.

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      "LEASE YEAR" shall mean a time period of twelve (12) consecutive calendar
months beginning with the Term Commencement Date or an anniversary thereof.

      "MAIN LEASE" shall mean that certain Ground Lease dated December 8, 1969,
from the City of New York to the New York City Public Development Corporation
("PDC") for a term of sixty years covering certain real property in the
Springfield Boulevard Urban Renewal Area in Queens County, City and State of New
York (the "Ground Lease Land"), which Ground Lease Land includes the Premises.

      "MASTER LEASE" shall mean that certain sub-Ground Lease dated December 9,
1969, as amended, from the PDC to the Landlord of the Ground Lease Land for a
term of sixty (60-) years.

      "MONTHLY BASE RENTAL" shall mean one-twelfth (1/12) of the Base Rental for
a given Lease Year.

      "PLANS AND SPECIFICATIONS" shall mean the final, detailed working plans
and Specifications, and drawings of the Building.

      "PREMISES" means that portion of the Building and the Land as outlined in
red in Exhibit A annexed hereto and made a part hereof which initially shall
consist of the "Initial Premises" as defined in Section 2.2 hereof, and upon the
vacating by "SRI" as hereinafter defined of space which they presently lease
pursuant to the "SRI Lease" as hereinafter defined, the Premises shall be
amended and expanded to include the "Additional Premises" as defined in said
Section 2.2.

      "SEVERANCE LEASE" Shall mean that lease dated March 6,1972, entered into
by the Landlord and PDC pursuant to Article 13, Section 13-01, subdivision (c)
of the Master Lease which lease severed out the Land from the Ground Lease Land
and which lease only encompasses the Land and no other Parcel.

      "TENANT'S PROPORTIONATE SHARE" shall mean one hundred (100%) percent
provided, however, that until the "Additional Premises" (as hereinafter defined)
are included in the Premises in accordance with Section 2.2, "Tenant's
Proportionate Share" shall mean eighty-two and 18/100 (82.18%) percent.

      "TERM COMMENCEMENT DATE" shall mean May 1, 2000.

                                   ARTICLE II

                                TERM AND PREMISES

      2.1 TERM. Subject to and upon the terms and conditions set forth herein,
or in any exhibit or addendum hereto, the Term (herein so called) of this Lease
shall be for a period of ten (10) Lease Years and shall commence on the Term
Commencement Date and shall expire on April 30, 2010 (the "Termination Date"),
unless sooner terminated as herein provided.

      2.2 PREMISES. (a) Subject to the terms, covenants and conditions of this
Lease, Landlord leases to Tenant and Tenant accepts and leases from Landlord,
during the Term, the aggregate premises comprising the Land and the Building,
subject to that certain lease dated December, 1993, as extended, covering
certain parts of the Premises by and between Landlord and Surf Riders Inc.
("SRI"), as tenant ("SRI Lease") and the rights of occupancy thereunder, through
and including April 30, 2001 (or the sooner termination of said SRI Lease) as
hereinafter provided;

      (b) The Premises shall initially consist of (i) 27,900 square feet of
warehouse space, plus, (ii) 4,608 square feet of ground floor office space,
(iii) 6,492 square feet of second floor office space; and (iv) 2.500 square feet
of second floor office space (collectively, the "Initial Premises") as depicted
on Exhibit A-1 up through the date that SRI vacates the premises it leases under
the SRI Lease.

      (c) Effective on the date that SRI vacates the premises it leases under
the SRI Lease, the Premises shall be deemed amended and expanded by adding (i)
5,675 square feet of warehouse

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space; (ii) 1,125 square feet of ground floor office space; and (iii) 2,200
square feet of second floor office space (collectively, the "Additional
Premises") as depicted on Exhibit A-1;

      (d) Upon such addition of the Additional Premises to the Initial Premises,
the Premises shall then consist in the aggregate of (i) 33,575 square feet of
warehouse space, (ii) 5,733 square feet of ground floor office space and (iii)
8,692 of second floor office space; and (iv) 2,500 square feet of second floor
office space.

      2.3 ADDITIONAL PREMISES. Landlord makes no representation or warranty as
to the date that SRI shall vacate the space it leases under the SRI Lease and in
the event of any delay or failure by SRI to vacate such space, there shall be no
abatement or reduction in rent (except to the extent set forth in Section 7.4,
then this Lease shall remain in full force and effect.

                                   ARTICLE III

                                      RENT

      3.1 BASE RENTAL. Tenant covenants and agrees to pay to Landlord, the Base
Rental for each Lease Year of the Term of the Lease (and the Monthly Base Rental
for each month of the Term of the Lease) as is set forth on Exhibit "B" attached
hereto and made a part hereof as modified by the terms of this Lease.

      3.1.1. Tenant further covenants and agrees that upon the addition of the
Additional Premises to the Initial Premises in accordance with Section 2.2(c)
hereof, that the amount of Base Rental (and Monthly Base Rental) payable by
Tenant for the remainder of the Term, as set forth on Exhibit "B" (subject to
the rent abatement as set forth in Section 7.4 shall be the total amount of rent
for both the Initial Premises and Additional Premises as set forth on Exhibit B.
In addition, "Tenant's Proportionate Share" shall thereafter be increased to
100% upon the addition of the Additional Premises to the Initial Premises as
aforesaid.

      3.2 PAYMENT OF MONTHLY BASE RENTAL. Commencing with the Term Commencement
Date and throughout the Term, Tenant agrees to pay to Landlord in advance on the
first (1st) day of each calendar month (the "Rental Due Date") in lawful money
of the United States of America, without prior notice, or demand and at the
address designated by Landlord in Article 24.1 or at such place or places as
Landlord may from time to time designate in accordance with Article 24.1, the
Monthly Base Rental for the applicable Lease Year, except that Tenant shall pay
to Landlord the Monthly Base Rental for the first thirty (30) days of the Term
with respect to the Initial Premises, upon the execution of this Lease (with the
Monthly Base Rental for the second month of the Term being prorated on a per
diem basis in the event that the first 30 days of the Term did not coincide with
a calendar month). All rent, including Base Rental, Monthly Base Rental and all
items of Additional Rental shall be paid by Tenant without offset or deduction
of any kind whatsoever.

      3.3 ADDITIONAL RENTAL. In the event of a failure beyond expiration of
applicable notice and cure period, on the part of Tenant to timely pay or
discharge any amount due to Landlord as Additional Rental, Landlord shall have
all rights, powers and remedies provided for by this Lease or by law as would be
the case in the event of nonpayment of Monthly Base Rental.

      3.4 LATE CHARGE. In the event that Tenant shall fail to pay any
installment of Monthly Base Rental by the tenth (10th) day of the month in which
such installment is due, or Additional Rental within ten(10) days after Tenant's
receipt of a billing therefor, there shall be added to such unpaid amount a late
charge of five percent (5%) for the installment of amount due in order to
compensate Landlord for the extra administrative expenses incurred. To the
extent that notice is required pursuant to the terms of this Lease, then notice
by facsimile transmission shall be deemed sufficient to comply with the
provisions hereof. The provisions of this Article in no way relieves Tenant of
the obligation to pay rent or other payments on or before the date on which they
are due, nor do the terms of this Article in any way affect Landlord's remedies
pursuant to any other Article of this Lease or pursuant to applicable law in the
event that the Monthly Base Rental or Additional Rental is unpaid after its due
date.

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                                   ARTICLE IV

                                      USE

      4.1 USE. Tenant shall have the right to use and occupy the Premises solely
for the purposes of providing air cargo services, air commissary services, other
similar air services and for ancillary aviation industry purposes.

      4.2 PARKING. Subject to the provisions of Sections 4.1, 4.4 and the other
applicable provisions of this Lease, including Section 4.5, Tenant shall have
the right to park trucks and other vehicles and cargo containers on all or any
portion of the Land as depicted in Exhibit A-1.

      4.3 NONDISCRIMINATION. At all times during the Term, Tenant will not
discriminate against any employee or applicant for employment because of race,
color, creed or national origin or in any other manner which violates applicable
laws. Tenant will take affirmative action to ensure that employees and
applicants for employment are treated without regard to their race, color, creed
or national origin or in any other manner which violates applicable laws. As
used herein, the term "treated" shall mean and include, without limitation, the
following: recruited, whether by advertising or other means; compensated,
whether in the form of rates of pay or other forms of compensation; selected for
training, including apprenticeship; promoted; upgraded; downgraded; demoted;
transferred; laid off; and terminated. Tenant will post in conspicuous places in
the Building, available to employees of Tenant and applicants for employment,
notices provided by the City of New York setting forth the language of these
nondiscrimination provisions; and

            (a) Tenant will, in all solicitations or advertisements for
            employees placed by or on behalf of Tenant, state that all qualified
            applicants will be considered for employment without regard to race,
            color, creed or national origin or any other manner which violates
            applicable laws;

            (b) Tenant will send each labor union or other representative of
            workers with which it has a collective bargaining agreement or other
            contract or understanding, a notice advising such labor union or
            workers' representative of Tenant's agreement as contained in this
            Section; copies of such notices shall be posted, and a copy thereof
            shall be sent to the City of New York within three (3) days of
            notification of such union or representative;

            (c) Tenant will furnish to the City of New York all information
            required by the City of New York pursuant to this Section, and will
            permit reasonable access by the City of New York to its books,
            records, and accounts for the purposes of investigation to ascertain
            compliance with this Section.

      4.4 PRIOR LEASES. Tenant agrees that the Lease is subject and subordinate
to the Main Lease, Master Lease and the Severance Lease. Landlord represents and
warrants that Tenant has been provided with a true, complete and correct copy of
the Main Lease, Master Lease and the Severance Lease and all amendments thereto,
if any. Without limiting Tenant's other obligations, Tenant shall not violate
any of the terms, covenants and conditions of the Main Lease, Master Lease and
the Severance Lease.

      4.5 Tenant, at its sole cost and expense, shall comply with all law,
orders and regulations of Federal, State, County Municipal and other local
governments, departments, commissions, authorities, and boards and with any
direction of any public officer or officers which shall impose any violation,
order or duty upon the Premises and/or Landlord and/or Tenant with respect to
the Premises, whether or not arising out of Tenant's use or manner of use
thereof (except for violations arising from Landlord's willful misconduct; gross
negligence and/or from Landlord's construction of Landlord's Warehouse Work,
Landlord's Initial Office Work and/or Landlord's Additional Office Work).

      4.6 Tenant shall not do or permit to be done any act or thing upon the
Premises, which will invalidate or be in conflict with any one or more of the
insurance policies covering the Building, and fixtures and property therein, or
which would increase the rate of fire insurance applicable to the Building to an
amount higher than it otherwise would be; provided however,

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that to the best of Landlord's knowledge, without making any independent
inquiry, Tenant's use of the Premises in accordance with Article IV shall not
violate or conflict with any such insurance policies; and Tenant shall neither
do nor permit to be done any act or thing upon the Land and Building which shall
or might subject Landlord to any liability or responsibility for injury to any
person or persons or to property by reason of any business or operation being
carried on upon the Building. Without limiting the foregoing, if as a result of
any act or omission by Tenant or violation of this Lease, the rate of fire
insurance applicable to the Building shall be increased to an amount higher than
it otherwise would be, Tenant shall reimburse Landlord for all increases of
Landlord's fire insurance premiums so caused; such reimbursement to be
Additional Rental payable upon the first day of the month following any outlay
by Landlord for such increased fire insurance premiums. In any action or
proceeding wherein Landlord and Tenant are parties, a schedule or "make up" of
rates for the Building or Premises issued by the body making fire insurance
rates, shall be presumptive evidence but not conclusive of the facts therein
stated and of the several items and charges in the fire insurance rate then
applicable to said Building.

      4.7 Tenant shall not use or suffer the Premises to be used in any manner
so as to create an environmental violation or hazard, nor shall Tenant cause or
suffer to be caused any chemical contamination or discharge of a substance of
any nature which is noxious, offensive or harmful or which under any law, rule
or regulation of any governmental authority having jurisdiction constitutes
"Hazardous Materials" as hereinafter defined.

      4.8 Tenant shall also immediately notify Landlord in writing of any
environmental concerns of which Tenant is or becomes aware and which are raised
by any private party or government agency with regard to Tenant's business or
the Premises. Tenant shall also notify Landlord immediately of any hazardous
waste spills at the Premises and of any other Hazardous Materials of which
Tenant becomes aware.

      4.9 Not in limitation of the generality of the foregoing, but as
additional covenants, Tenant specifically agrees that (i) except for limited
quantities used or stored at the Premises in compliance with applicable laws
required in connection with the routine use, occupancy and maintenance of the
Premises, Tenant shall not generate, manufacture, refine, transport, treat,
store, handle, dispose or otherwise deal with any hazardous substances or
hazardous waste as now or hereafter defined by applicable law; and (ii) Tenant
shall defend, indemnify and hold Landlord harmless against any liability, loss,
cost or expense, including reasonable attorneys' fees and costs (whether or not
legal action has been instituted) incurred by reason of the existence of or any
failure by Tenant to comply with any environmental law now or hereafter in
effect.

      4.10. As used herein, the term "Hazardous Materials" means and includes
all hazardous materials, substances and/or waste as defined in any federal,
state or local statute, law, rule, regulation, order or judicial decision,
including without limitation radon, oil, gas and other petroleum products, lead
paint, asbestos and asbestos containing materials.

      4.11. Tenant covenants and agrees that at any and all times during the
term of this Lease it shall be responsible for compliance with any federal,
state, county, local, or municipal law (including without limitation Local Law
76, as same now exists or may hereafter be amended, if the Building is located
in New York City), statute, ordinance, code, regulation or administrative
recommendation pertaining to Hazardous Materials (including without limitation
any requirements pertaining to the cleanup, removal, and/or encapsulation of any
Hazardous Materials that may be in or at the demised premises or may have
emanated therefrom), to the extent same are related to or arising from Tenant's
occupancy or use of the Premises, including without limitation, relating to or
arising from the acts or omissions of Tenant, its employees, contractors,
agents, invitees and/or licensees. Tenant shall, at its sole cost and expense,
undertake any and all steps which may be required for compliance as aforesaid.
In addition, Tenant shall be solely responsible for restoring and repairing any
damage to the Premises caused by or resulting from such compliance, e.g. the
replacement of any ceiling tiles or insulation with comparable products not
containing any Hazardous Materials.

      4.12. Tenant shall indemnify and save harmless the Landlord, Landlord's
agents, servants, and employees, from and against all claims and demands whether
for injuries to persons or loss of life, or damage to property, related to or
arising in any manner whatsoever out

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of the clean-up, removal and/or encapsulation of Hazardous Materials provided
same is occasioned wholly or in part by any act or omission of (or failure to
comply with legal requirements by) Tenant, its agents, contractors, employees,
servants and licensees. In the event Landlord shall, without fault on its part,
be made a party to any litigation or administrative proceedings commenced by or
against Tenant, then Tenant shall protect and hold Landlord harmless and shall
pay all costs, expenses and reasonable attorneys fees incurred or paid by
Landlord in connection with such litigation.

      4.13. Notwithstanding anything herein to the contrary, Tenant shall file
no documents or take any other action under this Article without Landlord's
prior written approval thereof which shall not be unreasonably withheld or
delayed, and Landlord shall also have the right to file such documents or take
such action instead or on behalf of Tenant (but still at Tenant's sole cost and
reasonable expense), and Tenant shall cooperate with Landlord in so doing.
Tenant shall also (i) furnish Landlord with copies of any documents filed by
Tenant pursuant to any environmental law; (ii) permit Landlord to be present at
any inspection, on or off site, and at any meetings and substances dealt with by
Tenant at the Premises, as well as any additional information available to
Tenant for government filings or determinations as to whether there has been
compliance with an environmental law.

      4.14. Without limiting Landlord's other rights and remedies, Landlord
shall also have the right, but not the obligation, to enter the Premises at any
time upon reasonable notice (which notice may be verbal and provided further,
that no such notice shall be required in the event of an emergency) to conduct
tests to discover the facts of any alleged or potential environmental problem.
In the event Tenant fails to comply as aforesaid with the clean-up, removal,
and/or encapsulation of Hazardous Materials when so required within the period
of time permitted or promulgated, then in such event Landlord (or its affiliate)
may undertake said work, but shall not be obligated to do so. Should Landlord
(or its affiliate) undertake said work required by Tenant as aforesaid, then in
such event, Landlord shall render a statement to Tenant for the cost and
expenses of undertaking said work plus a charge of twenty (20%) percent for
administrative costs and expenses, which statement shall be paid by Tenant as
Additional Rental within ten (10) days of receipt thereof. Failure of Tenant to
undertake compliance as aforesaid shall constitute a material default under this
Lease for which Landlord shall have all rights and remedies, including without
limitation the right to terminate this Lease and the right to hold Tenant
responsible for the entire cost of compliance as aforesaid and for all of
Landlord's damages resulting from Tenant's failure to so comply. In exercising
any of its rights under this Section, Landlord shall endeavor to minimize
disturbance to the conduct of Tenant's business, but Landlord makes no
representations or warranties that in exercising such rights that it will not
disturb the conduct of Tenant's business. In the event of such disturbance,
Landlord shall not be responsible for any liability and this Lease shall remain
in full force and effect without abatement or diminution in Base Rent or
Additional Rent.

      4.15. The provisions of this Article shall survive the expiration or
earlier termination of this Lease, and the Tenant shall require any permitted
assignee or sub-lessee of the Premises to agree expressly in writing to comply
with all the provisions of this Article.

                                    ARTICLE V

                                TRIPLE NET LEASE

      It is the intention of Landlord and Tenant that, except as otherwise set
forth in this Agreement, rental shall be absolutely net-net-net to Landlord;
that all costs, expenses and obligations of every kind relating directly or
indirectly in any way, foreseen and unforeseen, to the use, occupancy,
possession, repair and maintenance of the Premises, which may arise or become
due during the Term hereof shall be paid by Tenant.

                                   ARTICLE VI

                  IMPOSITIONS, UTILITIES, SERVICES, MAINTENANCE

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      6.1 IMPOSITIONS.

            (a) (i) Tenant shall, within ten (10) days after receipt of the Real
Estate Tax Bill from Landlord, pay to Landlord, Tenant's Proportionate Share of
all increases, over the "Base Rate", as herein defined, of real property taxes,
licenses and permit fees, and governmental levies and charges, general and
special, ordinary and extraordinary, unforeseen as well as foreseen, of any
kind and nature whatsoever which are assessed, levied, confirmed or imposed upon
the Premises, including the Building, Land and any and all improvements thereon
which become payable during the Term of this Lease or any renewal or extension
thereof in accordance with the provisions of this Article 6 (collectively, the
"Impositions"), excluding all penalties, fees and interest arising out of the
late payment of same by Landlord unless such late payment is caused by Tenant's
failure to timely pay such impositions.

                  (ii) In addition, Tenant shall pay to Landlord, within thirty
(30) days after the same shall be payable by Landlord and as additional rent for
the Lease Year in which the same shall be so payable, an amount equal to
Tenant's Proportionate Share of any assessment (general, special or otherwise)
or installment thereof for betterments or improvements which may be levied upon
the Premises. Landlord shall take the benefit of the provisions of any statute
or ordinance permitting any such assessment to be paid over a period of time and
Tenant shall be obligated to pay only the said percentage of the installments of
any such assessments which shall become due and payable during the term of this
Lease.

                  (iii) In the event there shall be levied against the Landlord
during the term of this Lease an assessment for improvements or betterments
which is payable in one reasonable sum, then in that event said assessment shall
be divided by the number of years equal to the term of this Lease and Tenant's
responsibility shall be the sum equal to its Proportionate Share of said amount
times the number of unexpired years in the Lease; for example, if an assessment
is levied for $10,000.00, and the Lease term has a period of ten (10) years, the
annual installments will be deemed to be $1,000.00 per year and in the event
Tenant's Proportionate Share is one hundred (100%) percent, Tenant will owe
$1,000.00 times the number of years remaining under this Lease as of the date of
its assessment.

            (b) Subject to the provisions for payment of increases in
Impositions contained herein, Landlord and Tenant acknowledge that a portion of
the Base Rental is allocable towards the payment for Impositions at the rate of
$2.00 per square foot of space comprising the Premises (as the Premises shall
increase upon the addition of the Additional Premises as aforesaid). Said rate
of $2.00 per square foot is herein referred to as the ABase Rate.

            (c) All Impositions shall be pro-rated for the calendar year in
which the Lease commences and terminates. The actual Impositions for the first
(1st) Lease Year of the Lease Term shall be at the rate of $2.00 per square
foot. Commencing with the second (2nd) Lease Year of the Lease Term, Tenant will
remit its Proportionate Share of any increase in Impositions over the Base Rate
to Landlord within ten (10) days of receipt of bill from Landlord calculating
the increase and stating the amount due. Such increase in Impositions shall be
computed by: (i) dividing the amount of such Impositions by the number of square
feet of the Building, then (ii) subtracting the Base Rate from such quotient,
then (iii) multiplying the difference by the number of square feet of the
Premises as then constituted. Prior to the expiration of the Term, Landlord
shall bill Tenant for its pro rata share of the Impositions based upon the
overlap of the last year of the Lease and the fiscal period of the taxing
authorities. Such pro rata billing shall be based upon the increase in the
Imposition over the Base Rate computed as aforesaid. Tenant shall pay such pro
rata billing to Landlord within ten (10) days of receipt thereof, provided,
however, that if the Impositions for the last fiscal year of the taxing
authorities into which the Term extends shall vary from those of the previous
fiscal year, Tenant and Landlord shall make a final adjustment at the end of the
last such fiscal year based upon the increase of the Impositions actually paid
by Landlord over the Base Rate, and any such liability of Landlord or Tenant for
any such adjustment shall specifically survive the expiration or sooner
termination of this Lease.

            (d) In no event shall any rent adjustment under this Article or any
other provisions of this Lease, result in any reduction in the Base Rental
payable hereunder.

            (e) Nothing herein above shall require Tenant to pay any of
Landlord's franchise, estate, inheritance, succession, income, excess profits,
or revenue tax, or any other tax,

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assessment, charge or levy based on or measured by the gross income or capital
stock of Landlord or upon the net rental payable by Tenant under this Lease,
except to the extent that any such tax, assessment, charge or levy is in lieu
of, in substitution of or in addition to any real property taxes or other
Impositions, in which case, such tax, assessment, charge or levy shall be deemed
to be a part of the Impositions.

            (f) Landlord shall have the sole right, at its own cost and expense
to institute tax certiorari proceedings if Landlord elects to do so for any
given tax year(s) in Landlord's sole and absolute discretion. Any recovery of
taxes for the period during Term shall be paid to Tenant, but in no event shall
such payment exceed the amount of taxes paid by Tenant for the applicable tax
year(s) and any balance of such recovery shall be held in trust by Tenant for
the benefit of Landlord and promptly paid to Landlord.

      6.2 UTILITIES AND SERVICES. From and after the Term Commencement Date and
throughout the Term, Tenant shall be responsible for and promptly pay, prior to
delinquency, all utility charges applicable to the Premises as then constituted
incurred after such date, including, but not limited to (i) telephone service,
(ii) heat, fuel and/or natural gas and (iii) electricity and (iv) sanitary sewer
and water charges. Tenant shall be responsible for and pay any janitorial,
landscaping, snow removal, trash removal, security and other services which
Tenant requires be provided to the Premises. Tenant shall also provide all
replacement light bulbs and tubes. In no event shall Landlord be liable for any
interruption or failure of utility service to the Premises unless it is caused
by the gross negligence or willful misconduct of Landlord. Landlord shall be
responsible for no services to the Premises, except as may otherwise be
expressly provided in this Lease.

      6.3 TENANT'S FAILURE TO PAY IMPOSITIONS, UTILITIES AND MAINTENANCE. In the
event that Tenant (i) fails to pay any Imposition upon the Building when due,
(ii) fails to pay any utility costs for the Premises when due, (iii) fails to
pay the cost for any services to the Premises when due, and/or (iv) fails to
maintain or repair the Premises in accordance with Article VII, Landlord shall
have the right, without prejudice to Landlord's other rights and remedies, to
make written demand on Tenant to pay such amount due or to undertake such
maintenance or repair. Without limiting Landlord's other rights and remedies, if
within thirty (30) days after such written notice to Tenant, Tenant fails to pay
the amount due or to undertake the maintenance or repair needed, Landlord, at
its option, may make such payment or undertake such maintenance and repair and
Tenant agrees to pay to Landlord as Additional Rental within ten (10) days after
written notice any amount reasonably expended by Landlord plus interest at the
Interest Rate, provided, however, that Landlord submits proof of the cost of the
repair (invoices, etc.) at the time it demands payment. Landlord's action in
paying any amount or undertaking any maintenance or repair on behalf of Tenant
pursuant to this Section 6.3 shall in no way reduce or abrogate Tenant's
obligations under Article 7.4 nor shall Landlord's actions constitute a waiver
of any default by Tenant under Article 25.7.

                                   ARTICLE VII

          CONDITION OF PREMISES, CONSTRUCTION, REPAIRS AND MAINTENANCE

      7.1 CONDITION OF PREMISES. Except for the performance of "Landlord's
Warehouse Work" and "Landlord's Initial Office Work" as such terms are
hereinafter defined, Tenant, by taking possession of the Premises, shall be
deemed to have conclusively agreed that the Premises as then constituted were as
of the date of taking possession in good order, repair, and condition, and
satisfactorily completed in accordance with Landlord's obligation under this
Lease. No promise of Landlord to alter, remodel, redecorate, clean or improve
the Premises, or the Building, and no representation or warranty, express or
implied, with respect to the condition of the Premises or the Building has been
made by the Landlord to Tenant, unless the same is expressly set forth herein
and made a part hereof. Landlord's Warehouse Work, Landlord's Initial Office
Work and Landlord's Additional Office Work and Tenant's Work shall be performed
by Landlord in a good and workmanlike manner.

                                       8

<PAGE>

      7.2 LANDLORD'S WAREHOUSE WORK. Attached hereto as Exhibit "C" is a
description of certain work to the warehouse space in the Initial Premises (and
not the Additional Premises) which, subject to the terms, covenants and
conditions hereof, Landlord agrees to perform and complete at its sole cost and
expense ("Landlord's Warehouse Work"). Landlord's Warehouse Work (including the
work described in 7.2.1) shall be substantially completed within forty-five (45)
days after the Term Commencement Date, except that Landlord shall remove the
existing demising wall in the warehouse space (except for the portion of such
demising wall surrounding the SRI space) within five (5) days after the Term
Commencement Date. Landlord shall have the right to perform Landlord's Work
(including the work described in 7.2.1), subject to the provisions of the
preceding sentence, at any time that Landlord deems appropriate, including such
time as Tenant is in occupancy and conducting business in the Initial Premises.
Tenant will fully cooperate and allow Landlord full and complete access to the
Initial Premises, including the Warehouse Space, for the purpose of performing
Landlord's Warehouse Work.

      7.2.1 Landlord's Warehouse Work shall also be deemed to include the
following work to be performed by Landlord at its sole cost and expense: (i)
expanding the bathrooms on the ground floor of the Initial Premises; (ii) tiling
or carpeting the ground floor (excluding the warehouse space) of the Initial
Premises; and (iii) painting the offices comprising a part of the Initial
Premises which work shall also be substantially completed by Landlord within
forty-five (45) days after the Term Commencement Date.

      7.2.2 It is expressly understood and agreed that there shall be no
abatement or diminution of the Base Rental (nor Monthly Rental) nor any items of
Additional Rental during the performance of Landlord's Warehouse Work (including
the work described in Section 7.2.1). Without limiting the foregoing, Tenant
shall be obligated to pay the entire Base Rental (and Monthly Rental) and all
items of Additional Rental for the Initial Premises during the performance of
Landlord's Warehouse Work (including the performance of the work described in
Section 7.2.1).

      7.3 LANDLORD'S INITIAL OFFICE WORK. Attached hereto as Exhibit "D" is a
description of certain work to part of (consisting only of 2,500 square feet of
second floor office space) the office space included in the Initial Premises
(and not the Additional Premises) which, subject to the terms, covenants and
conditions hereof, Landlord agrees to perform and complete at its sole cost and
expense ("Landlord's Initial Office Work"). Promptly following the Term
Commencement Date, Tenant shall provide to Landlord proposed plans covering
Landlord's Initial Office Work which shall be in accordance with the provisions
of Exhibit "D" (the "Initial Office Work Plans"). The Initial Office Work Plans
shall be subject to the prior written approval of Landlord. Provided that the
Initial Office Work Plans submitted to Landlord by Tenant are in compliance with
the provisions of Exhibit D, then Landlord agrees: (i) to complete its review of
such plans within thirty (30) days following receipt of such Initial Office Work
Plans; and (ii) not to unreasonably withhold Landlord's approval of such plans.
From and after the date that Landlord shall have approved the proposed Initial
Office Work Plans, the portion of the Base Rental and Additional Rental payable
by Tenant for such portion (2,500 square feet of office space on the second
floor) of the office space located in the Initial Premises, as set forth on
Exhibit B, shall be abated until the date that Landlord substantially completes
Landlord's Initial Office Work, the amount of Base Rental which would otherwise
be payable by Tenant for such office space located in the Initial Premises,
shall be abated until the date that Landlord substantially completes Landlord's
Initial Office Work, but Tenant shall, nevertheless, perform, observe and abide
by all other terms, covenants and conditions of this Lease, including the timely
payment of all other Base Rental and all other items of Additional Rental. It is
further expressly understood and agreed that until such time as Landlord has
approved, the proposed Initial Office Work, that Tenant shall be obligated to
pay, without limitation, the full amount of Base Rental, for such office space
in the Initial Premises. Landlord makes no representations or warranties as to
when Landlord's Initial Office Work Plans shall be substantially completed or
completed. Tenant will fully cooperate with Landlord and Landlord's performance
of Landlord's Initial Office Work, including providing Landlord with full and
complete access to the Initial Premises.

      7.4 LANDLORD'S ADDITIONAL OFFICE WORK. Attached hereto as Exhibit "E" is
a description of certain work to the 2,200 square feet of office space located
on the second floor of the Additional Premises and certain work to the 6,492
square feet of second floor office space in the

                                       9

<PAGE>

Initial Premises, which subject to the terms, covenants and conditions hereof,
Landlord agrees to perform and complete at its sole cost and expense
("Landlord's Additional Work"); it being understood and agreed that said 6,492
square feet of second floor office space in the Initial Premises shall be
included in Landlord's Additional Work. Promptly following the date that the
Additional Premises is included in the Premises as set forth in Section 2.2(c),
Tenant shall provide Landlord with plans covering such work such office space in
the Additional Premises which plans shall be in accordance with the description
on Exhibit E (the "Additional Office Work Plans"). Within five (5) days
following the date that the Additional Premises are included in the Premises as
set forth in Section 2.2(c), Landlord shall remove the remaining portion of the
interior demising wall in the warehouse space. The Additional Office Work Plans
shall be subject to the prior written approval of Landlord. Landlord agrees not
to unreasonably delay its review of the Additional Office Work Plans. Provided
that the Additional Office Work Plans submitted to Landlord by Tenant are in
compliance with the provisions of Exhibit E, then Landlord's agrees: (i) to
complete its review of such plans within thirty (30) days following receipt of
such Additional Office Work Plans; and (ii) not to unreasonably withhold
Landlord's approval of such plans. Tenant agrees that the Additional Office Work
Plans shall not be submitted to Landlord piece-meal, but that Tenant shall
simultaneously submit a complete set of such proposed Additional Office Work
Plans covering the entire Landlord's Additional Office Work for Landlord's
review as aforesaid. From and after the date that the Additional Premises become
included in the Premises as set forth in Section 2.2(c), the Base Rental and
Additional Rental payable by Tenant for said 2,200 square feet of office space
located on the second floor and said 6,492 square feet of office space located
on the second floor (being part of the Initial Premises), shall be abated until
the earlier of: (i) sixty (60) days following the date that the Additional
Premises become included in the Premises as set forth in Section 2.2(c); or (ii)
the date that Landlord's Additional Office Work is substantially completed.
Notwithstanding such partial abatement, Tenant shall nevertheless perform,
observe and abide by all other terms, covenants and conditions of this Lease,
including the timely payment of all other Base Rental and all other items of
Additional Rental. Landlord makes no representations or warranties as to when
Landlord's Additional Office Work shall be substantially completed. Tenant will
fully cooperate with Landlord in the performance of Landlord's Additional Office
Work, including providing Landlord with full and complete access to the
Additional Premises.

      7.4.1 NO WORK TO WAREHOUSE SPACE IN ADDITIONAL PREMISES. It is expressly
understood and agreed that Landlord shall have no obligation whatsoever to
perform any work to the warehouse space located in the Additional Premises
(other than the removal of the remaining portion of the interior demising
warehouse wall), and Tenant shall accept the same AS IS (other than the removal
of the remaining portion of the interior demising warehouse wall) on the date
that SRI vacates the Additional Premises, provided however, that said warehouse
space shall be vacant, broom clean and the utility systems (electric, heating,
plumbing and air conditioning) servicing such Warehouse Space shall be in
working order.

      7.5 TENANT'S WORK. In addition, subject to the provisions hereof, Landlord
agrees to perform and complete, at Tenant's sole cost and expense, but provided
that the construction and contractor fees shall be approximately up to
$30,460.00 in total (including the cost of work and materials, but not including
any permitting, filing fees, architect's fees nor any additional costs and
expenses for work, materials, permitting and filing fees, architect's fees
incurred by reason of the preparation, issuance, review and/or revision of
plans, if required, and/or construction of any changes or extras, all of which
costs and expenses shall also be paid by Tenant) using Landlord (or Landlord's
designee), as its sole contractor, all construction work to the Premises
(collectively, "Tenant's Work") described on Exhibit "F" in a first class
manner. Without limiting Tenant's other obligations, Tenant shall pay for all
filing fees to obtain any necessary permits covering Tenant's Work. Landlord's
makes no representations or warranties that if required, any such permits and
approvals are obtainable. In the event that such permits and approvals are not
obtained, then Tenant's Work shall not be performed, and this Lease will remain
in full force and effect without any reduction or diminution of Base Rental or
Additional Rental subject to the provisions of the last sentence of this
section. Upon receipt of any necessary permits and approvals Landlord's or its
designee, on behalf of Tenant, shall perform Tenant's Work. Landlord makes no
representations or warranties as to the date that Tenant's Work shall be
substantially completed. It is expressly understood and agreed that Tenant's
Work may be performed by Landlord, or its designee, at any time that Landlord or
its designee deems appropriate, including such time that Tenant is in occupancy
and conducting business in the Premises. Tenant will fully cooperate and allow
Landlord and its designee full and complete

                                       10

<PAGE>

access to the Premises for the purpose of performing Tenant's Work. There shall
be no abatement or diminution of the Base Rental or any items of Additional
Rental during the performance of Tenant's Work. If Landlord is unable to
construct Tenant's Work, then Tenant shall have the right to terminate this
Lease by written notice to Landlord sent within ten (10) days following Tenant's
receipt of notice from Landlord that Landlord is unable to construct Tenant's
Work and if Tenant fails to timely send such notice of termination, then
Tenant's right to terminate shall be waived.

      7.6 CONDITION ON SURRENDER. Tenant shall, at the termination of this
Lease, surrender the Premises to Landlord in as good condition and repair as
reasonable and proper use thereof will permit, loss by ordinary wear and tear,
fire and other casualty required to be insured pursuant to this Lease excepted
and in the state of broom cleanliness, and shall surrender keys for the Premises
to the Landlord at the place then fixed for payment of the rent. All non-
structural alterations, installations, additions and improvements made and
installed by Tenant, or at Tenant's expense, upon or in the Premises shall be
removed at the end of the term of the Lease at Tenants sole cost and expense and
the Premises restored by Tenant and any damages created thereby shall be
repaired, all at Tenant's sole cost and expense. Where furnished by or at the
expense of Tenant all movable furniture, furnishings and trade fixtures,
including without limitation, murals, business machines and equipment, counters,
screens, grille work, special paneled doors, cages, partitions, metal railings,
closets, paneling, lighting fixtures and equipment, drinking fountains,
refrigerators, and any other movable property shall remain the property of
Tenant which Tenant shall be obligated to remove at any time prior to the
expiration or sooner termination of the term of this Lease, and without limiting
Tenant's other obligations, Tenant shall repair all damage occasioned by such
removal, at Tenant's sole cost and expense. All such property which is not so
removed by Tenant shall, without limiting Landlord's other rights and remedies,
either be retained by Landlord as Landlord's property or may be removed from the
Premises, and disposed of by Landlord, at Tenant's sole cost and expense.

      7.7 REPAIR, REPLACEMENT AND MAINTENANCE BY TENANT. (a) Tenant shall (only
using Landlord or Landlord's designee as general contractor), during the Term,
at Tenant's sole cost and expense, maintain in good order and condition and make
all repairs and replacements in and to the Premises whether structural or
non-structural, ordinary or extraordinary, foreseen or unforeseen (including
Tenant's improvements, Tenant's Work and Tenant's furniture, fixtures and
equipment), including but not limited to the roof, roof decking, structural
steel, masonry walls, glazing, foundations, footings, floor slabs, electrical,
plumbing, sewer, heating, ventilating and air-conditioning, mechanical and
utility systems serving the Building. Tenant shall keep the Premises in a clean,
sightly, and sanitary condition during the term of this Lease. Tenant shall be
responsible for disposal of its trash from the Building, and will maintain
adequate receptacles for such disposal. Replacement and repair parts, material
and equipment shall be of a quality equivalent to those initially installed
within the Premises, and repair and maintenance work shall be done in accordance
with the then existing federal, state and local laws, regulations and ordinances
pertaining thereto. The prices charged by Landlord or Landlord's designee as
general contractor shall be competitive with the prices charged by general
contractors in the industry.

            (b) The Tenant shall be solely responsible for snow removal,
sweeping, and general maintenance of the asphalt yard and drive areas (patching
potholes and filling impressions, not repaving) within the Premises.

            (c) The Tenant shall be responsible for any damage to Premises
caused by its negligent acts or omissions or those of its employees, agents,
contractors, licensees or invitees.

            (d) Without limiting Tenant's other obligations, Tenant shall,
throughout the term, take out and maintain, in full force and effect, at
Tenant's sole cost and expense, heating, ventilation and air conditioning
maintenance contract with a contractor, reasonably acceptable to Landlord.

                                  ARTICLE VIII

                                 INDEMNIFICATION

      8.1 Tenant will indemnify, defend and save Landlord harmless from and
against any and all claims, actions, damages, liabilities, settlement costs and
expenses, losses, claims,

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<PAGE>

actions, liens, lawsuits, demands, fines, penalties, and all expenses (including
but not limited to costs of investigation and defense and reasonable fees
incurred for attorneys, expert witnesses, consultants and litigation support
services) directly or indirectly due to or arising out of any one or more of the
following by Tenant, its subtenants, assigns or other occupants and/or their
respective agents, employees, contractors, licensees or invitees: (i) the use
and occupancy by Tenant of the Premises; (ii) the breach, default or other
violation of any of the terms, covenants and conditions of this Lease; and/or
(iii) their negligence and willful misconduct or omissions.

                                   ARTICLE IX

                                    INSURANCE

      9.1   (a) FIRE AND EXTENDED COVERAGE. Landlord shall have the right to
maintain such fire and extended coverage insurance and any and all other
insurance, which Landlord elects to maintain. under any one or more individual,
blanket underlying and/or umbrella coverage or combination(s) thereof as
Landlord may elect. Such insurance policy(ies) shall be upon such term and for
such coverage as Landlord elects to maintain or as may be required by the holder
of any mortgage which may now or hereafter encumber Landlord's interest in all
or any portion of the Land and/or Building.

            (b) The Tenant agrees to pay to the Landlord, as Additional Rental,
Tenant's Proportionate Share of the cost of procuring and maintaining during the
Term of this Lease and any extension thereof, fire and casualty insurance on the
Building in the full amount of the replacement value of the Building, exclusive
of foundations, which value may be reasonably re-determined by Landlord or any
such mortgagee at any time and from time to time and the cost of any and all
other insurance that Landlord, from time to time maintains during the Term of
this Lease, including, without limitation, liability insurance, boiler,
machinery insurance, rent insurance and any and all other insurance which
Landlord may elect to maintain and/or which may be required by any such
mortgagee. The policy of insurance shall specifically provide that Landlord,
Landlord's Mortgagee, and (if required by the Severance Lease and Ground Lease)
the City of New York and the PDC are additional loss payees and that all
payments shall be made as their interests appear. Notwithstanding the foregoing,
if Landlord's Mortgagee determines or Landlord reasonably determines that the
amount of Fire and Extended Coverage is insufficient, then Landlord will
increase the amount of this Coverage to the amount specified in writing by the
Landlord's Mortgagee and Tenant shall pay its Proportionate Share of the cost
thereof.

      9.2 TENANT'S INSURANCE. Tenant shall procure and maintain during the term
of this Lease, policies of insurance with coverage as set forth below:

            (a) PUBLIC LIABILITY AND PROPERTY DAMAGES. Bodily injury liability
insurance and property damage liability insurance will be carried and maintained
by Tenant, at Tenant's sole cost and expense, upon execution of this Lease with
a combined single limit coverage of Ten Million Dollars ($10,000,000.00) for:

                  (i) Bodily Injury or Death, per person;

                  (ii) Bodily Injury or Death, aggregate; and

                  (iii) Property Damage.

All such bodily injury liability insurance and property damage liability
insurance shall specifically make reference to the indemnity agreement contained
in Article VIII hereof and shall name Landlord and Landlord's Mortgagee as
additional insureds. The requirements of Section 9.2(a) shall not preclude
Tenant from carrying additional bodily injury liability insurance and/or all
public liability and property damage policies shall be written as primary
policies, not contributing with, and not in excess of, coverage which Landlord
may carry, if any. Such insurance may be covered by a blanket covering other
locations and such public liability and property damage liability insurance
policies may be maintained by Tenant by a combination of one or more underlying
and umbrella policies, provided that they comply with the limits of coverage set
forth herein.

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<PAGE>

            (b) POLICY FORM. All policies of insurance provided for herein to
be carried by Tenant shall be Issued by insurance companies acceptable to
Landlord's Mortgagee and reasonably acceptable to Landlord, and shall be issued
in the names of Landlord, Landlord's Mortgagee, City of New York (if required)
and PDC and Tenant as co-insureds (without any liability on the part of Landlord
or Landlord's Mortgagee for premiums). Certificates thereof shall be delivered
to Landlord, Landlord's Mortgagee, the City of New York and the PDC within
thirty (30) days after execution hereof and thereafter thirty (30) days
subsequent to renewal of such policy. As often as any policy shall expire or
terminate, renewal or additional policies shall be procured and maintained by
Tenant in like manner and to like extent. All policies of insurance delivered to
Landlord and Landlord's Mortgagee must contain a provision that the company
writing said policy will give to Landlord and Landlord's Mortgagee thirty (30)
days' notice in writing in advance of any cancellation or lapse of the policy or
any reduction in the amounts of insurance if such adversely affects the Landlord
and the Landlord's Mortgagee.

            (c) TENANT'S FAILURE TO MAINTAIN INSURANCE. In the event that Tenant
(i) fails to maintain policies of insurance or (ii) fails to pay any premium for
policies of insurance when due, as required by this Article IX, Landlord or
Landlord's Mortgagee, without prejudice to their other rights and remedies,
shall have the right to produce said insurance policy or pay such insurance
premium on behalf of Tenant. In such an event, the amount expended by Landlord
or Landlord's Mortgagee shall be Additional Rental and Tenant shall pay said
amount to Landlord within thirty (30) days after demand at the Interest Rate,
provided, however, that Landlord submits proof of the cost of insurance
(invoices, bills, etc.) at the time it demands payment, without prejudice to
Landlord's and Landlord's Mortgagee's other rights and remedies. Any action by
Landlord or Landlord's Mortgagee in procuring insurance policies or paying
insurance premiums on behalf of Tenant pursuant to this Section 9.2(c) shall in
no way reduce or abrogate Tenant's obligations under Article IX or act as a
waiver of any default by Tenant under Article IX.

            (d) WORKER'S COMPENSATION Worker's compensation coverage insurance
shall be procured by Tenant in whatever amounts are necessary to comply with the
requirements of the State of New York for Tenant's employees.

            (e) OTHER INSURANCE. Tenant shall also maintain, at Tenant's sole
cost and expense, throughout the Term, fire insurance with extended coverage
covering the full replacement value of all of its contents in the Premises and
Tenant shall also maintain such other policies of insurance and coverages as may
be required from time to time by Landlord's Mortgagee or by Landlord.

      9.3 In the event that all or any portion of the Building or Tenant's trade
fixtures or personal property in the Premises shall be damaged or destroyed by
fire, explosion or other casualty required to be insured against pursuant to
this Lease, whether or not such damage or destruction caused, or claimed to be
caused, by the negligence or misconduct of Landlord or Tenant, or any of their
respective officers, employees, agents, contractors or invitees, neither
Landlord nor Tenant, including without limitation their respective insurance
company(ies), shall have any right of action, by way of subrogation or
otherwise, against Landlord or Tenant, or any of their respective officers,
employees, agents, contractors or invitees, arising form such damage or
destruction, and each policy of insurance required pursuant to this Lease shall
provide a waiver and release by the insurer of any such right.

                                    ARTICLE X

                            ALTERATIONS AND FIXTURES

      10.1. Tenant shall make no alterations, installations, additions or
improvements in or to the Premises without Landlord's prior written consent; all
such work shall be done only by Landlord as general contractor with
subcontractors or mechanics approved by Landlord at competitive prices of
general contractors in the industry. All such work, alterations, installations,
additions and improvements shall be done at Tenant's sole cost and expense.
Notwithstanding the foregoing, Tenant shall have the right to install furniture,
furnishings and moveable trade fixtures provided that the items do not interfere
with any utility services or impair the structural integrity of the Building and
Tenant otherwise complies with all other applicable provisions of

                                       13

<PAGE>

this Lease including, without limitation, Articles 4.5 and 10.6. Notwithstanding
the provisions of 10.1, but subject to the other applicable provisions of this
Lease, including Section 10.6, Landlord agrees not to unreasonably withhold or
delay its consent to alterations, installations, additions or improvements which
comply with all of the following terms and conditions: (i) the aggregate costs
of such alterations, installations, additions or improvements shall not exceed
$10,000 in the aggregate, in each instance; (ii) such alterations,
installations, additions or improvements are nonstructural and do not adversely
affect any utility systems servicing the Building; and (iii) such alterations,
installations, additional and improvements are made in and to the interior only
of the Premises.

      10.2. All alterations, installations, additions and improvements made and
installed and paid for by Landlord, if any exist, including Landlord's Warehouse
Work, Landlord's Initial Office Work and Landlord's Additional Office Work,
shall become and be the property of Landlord and shall remain upon and be
surrendered with the Premises as a part thereof at the end of the Term of this
Lease, excluding Tenant's modular work stations.

      10.3. All non-structural alterations, installations, additions and
improvements made and installed by Tenant, or at Tenant's expense, upon or in
the Premises shall be removed at the end of the term of the Lease at Tenant's
expense and the Premises restored by Tenant, and any damages created thereby
shall be repaired, all at Tenant's cost and expense.

      10.4. Where furnished by or at the expense of Tenant all furniture,
furnishings and moveable trade fixtures, including without limitation, murals,
business machines and equipment, counters, screens, grille work, special paneled
doors, cages, partitions, metal railings, closets, paneling, and equipment,
drinking fountains, refrigerators, and any other movable property shall remain
the property of Tenant which Tenant may at its option remove all or any part
thereof at any time prior to the expiration of the term of this Lease, provided
all damage occasioned by such removal is repaired by Tenant, at Tenant's sole
cost and expense. In case Tenant shall decide not to remove any part of such
property, Tenant shall notify Landlord in writing not less than sixty (60) days
prior to the expiration of the term of this Lease, specifying the items of
property which Tenant has decided not to remove, the same shall be deemed
abandoned by Tenant and thereupon the same shall become the property of
Landlord, without payment or reimbursement to Tenant and Landlord shall have the
right to dispose of same in such manner as Landlord deems appropriate at
Tenant's sole cost and expense and if Tenant fails to timely provide such
written notice to Landlord, then it shall be conclusively presumed that Tenant
shall have elected not to remove such items of property without prejudice to
Landlord's other rights and remedies.

      10.5. Tenant shall keep records of Tenant's alterations, installations,
additions and improvements, and the cost thereof. Tenant shall, within fifteen
(15) days after demand by Landlord, furnish to Landlord copies of such records
and cost only if Landlord shall require same in connection with any proceeding
to reduce the assessed valuation of the Building, or in connection with any
proceeding instituted pursuant to this Lease.

      10.6. Notwithstanding anything contained elsewhere in this Lease, if
Tenant makes any alterations, installations, additions or improvements, whether
structural or non-structural, Tenant shall, without limiting Tenant's other
obligations, comply with all of the following at Tenant's sole cost and expense:

            (a) Tenant shall furnish Landlord with the plans of the planned
alterations prior to construction.

            (b) Tenant must furnish Landlord with an "as-built" plan upon the
completion of any work.

            (c) Tenant will obtain all governmental permits and pay all
applicable government fees.

            (d) Tenant will file appropriate plans with governmental
authorities, where applicable.

                                       14

<PAGE>

            (e) Tenant will perform all alterations in a good and workmanlike
manner in accordance with standards at least equivalent to the standards
prevailing in the Building of which the Premises form a part.

            (f) Tenant accepts full responsibility for any changes in
sprinklers, passages, legal exits, entrances, hallways and any other components
of the Building, which may be necessitated by such alterations and shall not do
any work which shall adversely affect the remainder of the Building of which the
Premises form a part.

            (g) Tenant shall not make any installation on or through the roof,
nor shall Tenant or Tenant's agents enter upon the roof or place objects thereon
without the specific written permission of Landlord, who shall specify the time
and conditions under which such entry may be obtained. Landlord may make such
rules and regulations as they reasonably deem appropriate to govern Tenant's use
or access to the roof for any purpose whatsoever.

      10.7. Without limiting Tenant's other obligations under this Lease,
including its obligations under Section 7.2, Tenant shall, at its sole cost and
expense and only using Landlord (or Landlord's designee) as general contractor,
make such repairs to the Premises and the fixtures and appurtenances therein
necessitated by the act, omission, use, or negligence of Tenant, its subtenants
and/or assignees and/or the respective employees, agents, contractors, licensees
or invitees, or by the use of the Premises in a manner contrary to the purposes
for which same are leased to Tenant, as and when needed to preserve them in good
working order and condition. All damages or injury to the Premises and to its
fixtures, appurtenances and equipment caused by Tenant moving property in or out
of the Premises or by installation or Tenant's removal of furniture, fixtures or
other property, and for all of which aforesaid items, Landlord has not been or
will not be reimbursed by insurance, shall be repaired, restored or replaced
promptly by Tenant at its sole cost and expense, which repairs, restorations and
replacements shall be in quality and class equal to the original work or
installations. If Tenant fails to make such repairs, restorations or
replacements, same may be made by Landlord at the expense of Tenant and such
expense shall be collectible as Additional Rental and shall be paid by Tenant
within fifteen (15) days after receipt of a bill therefor.

      10.8. There shall be no allowance to Tenant for a diminution of rental
value and no liability on the part of Landlord by reason of inconvenience,
annoyance or injury to business arising from the making of any repairs,
alterations, additions or improvements in or to any portion of the Building or
the Premises or in or to fixtures, appurtenances or equipment thereof.

                                   ARTICLE XI

                       MECHANICS AND MATERIAL MEN'S LIENS

      Tenant shall not create or permit to be created or to remain, and will
discharge, any lien (including, but not limited to, the liens of mechanics,
laborers, artisans or material men for work or materials alleged to be done or
furnished for Tenant in connection with the Premises), encumbrance or other
charge upon the Premises or any part hereof, upon Landlord's interest therein,
or upon Tenant's leasehold interest. Within thirty (30) days of Tenant's receipt
of notice of a mechanic's or materialmen's lien (or within such shorter period
as may be required by Landlord's Mortgagee), Tenant shall either discharge such
lien of record by either: (i) paying the lien in full; or (ii) by posting the
bond required by law.

                                   ARTICLE XII

                                      SIGNS

      Subject to their terms and conditions of the Severance and Master Leases,
and provided that it obtains the prior written consent of the Landlord, which
Landlord may withhold, in its sole and absolute discretion, Tenant shall have
the right to install, erect and attach signs to the Premises as long as such
signs comply with applicable laws, codes and ordinances.

                                       15

<PAGE>

Notwithstanding the provisions of the preceding sentence, but subject to all
other applicable provisions of this Lease, including Section 10.6, Landlord
hereby consents to Tenant's signage substantially in the form attached as
Exhibit "G" which shall be located above each of the two glass-door entrances in
the Building. Tenant shall have the obligation, at Tenant's sole cost and
expense, to maintain in good repair all signs erected, installed or attached to
the Building by Tenant, however, in no event shall Tenant permit or allow signs
to be affixed to the roof. Tenant shall remove all such signs at the end of the
term of the Lease and shall advise the Building Department of same and in
addition, Tenant shall repair all damage occasioned by such removal.

                                  ARTICLE XIII

                        ASSIGNMENT, SUBLETTING, MORTGAGE

      A. Tenant shall not have the right to assign or pledge this Lease or to
sublet the whole or any part of the Premises, whether voluntarily or by
operation of law, or permit the use or occupancy of the Premises by anyone other
than Tenant, or assign this Lease for security purposes, without the prior
consent of Landlord, and such restrictions shall be binding upon any assignee or
subtenant to which Landlord has consented. In the event Tenant desires to sublet
the Premises, or any portion thereof, or assign this Lease, Tenant shall give
written notice thereof to Landlord at least thirty (30) days but no more than
sixty (60) days prior to the proposed commencement date of such subletting or
assignment, which notice shall set forth the name of the proposed subtenant or
assignee, the relevant terms of any sublease and copies of financial reports and
other relevant financial information of the proposed subtenant or assignee.
Notwithstanding any permitted assignment or subletting, Tenant shall at all
times remain directly and primarily responsible and liable for the payment of
the rent herein specified and for compliance with all of its other obligations
under this Lease. Upon the occurrence of an "event of default" (as hereinafter
defined), if the Premises or any part thereof are then sublet, Landlord, in
addition to any other remedies provided herein or by law, may collect directly
from such subtenant all rents due and becoming due to Tenant under such sublease
and apply such rent against any sums due to Landlord from Tenant hereunder. No
such collection directly from an assignee or subtenant shall be construed to
constitute a novation or a release of Tenant from the further performance of
Tenant's obligations hereunder.

      B. Subject to the provisions hereof, Tenant shall have the right, with the
prior written consent of Landlord, which consent shall not be unreasonably
withheld or delayed, to assign its interest in this Lease and to sublet all of
the Premises (and not any portion(s) thereof), to any entity which is a
successor to Tenant either by merger or consolidation or to a parent, subsidiary
or affiliate of Tenant. In addition, Tenant shall have the right, with the prior
written consent of Landlord, which shall not be unreasonably withheld or
delayed, to assign its interest in this Lease to any entity to which Tenant
shall sell its business (whether by means of an asset sale or a stock sale),
provided the following terms and conditions are complied with: (a) such sale is
an arm's length sale with a bona fide third party purchaser and is not designed
to circumvent the restrictions on assignment set forth in this Lease; (b) Tenant
and such assignee shall comply with all other applicable terms, covenants and
conditions of this Lease relating to assignment, including without limitation,
the provisions of the immediately following sentence (including the provisions
of subclauses (a) and (b) herein); (c) the holder(s) of mortgages encumbering
Landlord's interest in and to the Land and Building consents to such assignment,
if required by the mortgage(s) and other documents evidencing or securing such
loan and the holder(s) of the Landlords' interests under the Main Lease and
Master Lease consent to such assignment, if required by the Main Lease and/or
Master Lease, as the case may be. However, no such assignment or any assignment
made with Landlord's consent shall be valid unless, within thirty (30) days
after the execution thereof, Tenant shall deliver to Landlord (i) a duplicate
original instrument of assignment in form and substance reasonably satisfactory
to Landlord, duly executed by Tenant, and (ii) an instrument in form and
substance reasonably satisfactory to Landlord, duly executed by the assignee, in
which such assignee shall assume observance and performance of, and agree to be
personally bound by, all of the terms, covenants and conditions of this Lease on
Tenant's part to be observed and performed. Anything in this Article XIII to the
contrary notwithstanding except for a bona fide sale of Tenant's business which
complies with the provisions of this Article XIII, a transfer of a majority of
the issued and outstanding shares of Tenant (if Tenant is a corporation) or a
transfer of a majority of the partnership interest in Tenant (if Tenant is a
partnership) or a transfer of a majority of the membership interest of Tenant
(if

                                       16

<PAGE>

Tenant is a limited liability company) or a transfer of a majority of the
beneficial interest of Tenant (if Tenant is any other form of entity, including
a trust) shall be deemed an assignment of this Lease and shall be subject to all
of the provisions of this Article XIII, including, without limitation, the
requirement that Tenant obtain Landlord's prior consent thereto. In addition,
without limiting Landlord's other rights and remedies, Tenant shall not have any
right to assign this Lease or sublet the Premises if Tenant is in default under
this Lease.

      C. If, at any time after Tenant may have assigned Tenant's interest in
this Lease with Landlord's consent, this Lease shall be disaffirmed or rejected
in any bankruptcy or similar proceeding involving such assignee, or in the event
of termination of this Lease by reason of any such proceeding or by reason of
lapse of time following notice of termination given pursuant to Article XVII
hereof based upon any of the Events of Default set forth in such clauses,
Tenant, upon request of Landlord given within thirty (30) days next following
any such disaffirmance, rejection or termination (and actual notice thereof to
Landlord in the event of a disaffirmance or rejection or in the event of
termination other than by act of Landlord), shall (i) pay to Landlord all Rent,
Additional Rental and other charges due and owing by the assignee to Landlord
under this Lease to and including the date of such disaffirmance, rejection or
termination, and (ii) as "tenant", enter into a new lease with Landlord of the
Premises for a term commencing on the effective date of such disaffirmance,
rejection or termination and ending on the Expiration Date, unless sooner
terminated as in such lease provided, at the same Base Rental and Additional
Rental and upon the then executory terms, covenants and conditions as are
contained in this Lease, except that (a) Tenant's rights under the new lease
shall be subject to the possessory rights of the assignee under this Lease and
the possessory rights of any person claiming through or under such assignee or
by virtue of any statute or of any order of any court, and (b) such new lease
shall require all defaults existing under this Lease to be cured by Tenant with
due diligence, and (c) such new lease shall require Tenant to pay all increases
in the Base Rental and Additional Rental reserved in this Lease which, had this
Lease not been so disaffirmed, rejected or terminated, would have accrued under
the provisions of this Lease after the date of such disaffirmance, rejection or
termination with respect to any period prior thereto. If Tenant shall default in
its obligation to enter into said new lease for a period of ten (10) days next
following Landlord's request therefor, then, in addition to all other rights and
remedies by reason of such default, either at law or in equity, Landlord shall
have the same rights and remedies against Tenant as if Tenant had entered into
such new lease and such new lease had thereafter been terminated as at the
commencement date thereof by reason of Tenant's default thereunder.

      D. Tenant covenants that in the event of any assignment or transfer by
Tenant of its interest in this Lease, whether or not in violation of the
provisions of this Lease, and notwithstanding the acceptance of Base Rental
and/or Additional Rental by Landlord from an assignee, transferee, or any other
party, the original named Tenant shall remain fully liable for the payment of
the Base Rental and Additional Rental and for the other obligations of this
Lease on the part of Tenant to be performed or observed.

      E. The listing of any name other than that of Tenant, whether on the doors
of the Premises, on the Building directory, if any, or otherwise, shall not
operate to vest any right or interest in this Lease on the Premises, nor shall
it be deemed to be the consent of Landlord to any assignment or transfer of this
Lease to any sublease of the Premises, or to the use or occupancy thereof by
others.

                                   ARTICLE XIV

                                 QUIET ENJOYMENT

      Tenant, upon its payment of all rents and sums herein provided and upon
its compliance with the performance of all those provisions, terms and
conditions applicable to and performable by Tenant, shall peaceably and quietly
hold, occupy and enjoy the Premises for the Term of this Lease without
hindrance, ejection or interruption by Landlord, or persons lawfully or
equitably claiming under or through Landlord.

                                       17

<PAGE>

                                   ARTICLE XV

                              INTENTIONALLY OMITTED

                                   ARTICLE XVI

                                  HOLDING OVER

      Should Tenant remain in possession of the Premises, or any part there of,
after termination of this Lease (whether by expiration of the term of this Lease
or otherwise) without the execution of a new lease by Landlord and Tenant,
Tenant, at the option of Landlord, shall become a tenant from month-to-month of
the Premises, or any part thereof, at 200% of the Monthly Base Rental effective
in the last month of the term of this Lease, and under all other terms,
conditions, provisions, and obligations of this Lease insofar as the same are
applicable to a tenancy from month-to-month.

                                  ARTICLE XVII

                               LANDLORD'S REMEDIES

      17.1 EVENTS OF DEFAULT. The occurrence of any one or more of the following
events shall constitute an event of default (an "Event of default"):

            (a) The failure of Tenant to pay to Landlord as due any monthly
installment of Monthly Base Rental any amount of Additional Rental, or any other
amount owed by Tenant, and such failure continues for ten (10) days after
receipt by Tenant from Landlord of the Default Notice with respect to such
Monthly Base Rental and/or Additional Rental;

            (b) The taking of Tenant's leasehold estate by execution or other
process of law or the attachment of the Premises at the instance of any creditor
of or claimant against Tenant and said attachment shall not be discharged,
bonded or disposed of within the shorter of (i) sixty (60) days after the levy
thereof; or (ii) the shorter of the cure period(s) as set forth in the Main
Lease, Master Lease and/or mortgage encumbering Landlord's interest, as the case
may be;

            (c) The filing of any petition or the commencement of any case or
proceeding by the Tenant under any provision or Chapter of the Federal
Bankruptcy Act or any other federal law relating to insolvency, bankruptcy or
reorganization or the final adjudication that the Tenant is bankrupt or
insolvent, or the entry of an order for relief under the Federal Bankruptcy Act
with respect to the Tenant;

            (d) The filing of any petition or the commencement of any case or
proceeding described in Sub-section (c) above against the Tenant, unless such
petition and all proceedings initiated thereby are dismissed within the shorter
of (i) seventy-five (75) days after the levy thereof; or (ii) the shorter of the
cure period(s) as set forth in the Main Lease, Master Lease and/or mortgage
encumbering Landlord's interest, as the case may be;

            (e) The failure of Tenant to observe or perform any other term,
provision, or condition of the Lease and such failure continues for the shorter
of (i) thirty (30) days after receipt by Tenant from Landlord of the Default
Notice (ii) for the shorter of the applicable cure(s) as set forth in the Main
Lease, Lease and/or mortgage encumbering Landlord's interest, as the case may
be;

      17.2 OPPORTUNITY TO CURE. The Default Notice from the Landlord shall
specify the defaults that have occurred. Until expiration of the time periods
specified above, as applicable (the "Cure Period"), Tenant shall have the
opportunity to cure or cause to be cured the events of default. All monetary
defaults may be cured by the Tenant tendering the amount due with the applicable
interest thereon, as specified in the Default Notice. Cure will restore the
Tenant to its rights under this Lease as though the default had not occurred.
The words "cure" or "cured" or "caused to be cured" as used in this Lease shall
mean the correction of any default, or situation

                                       18

<PAGE>

creating a default, or the performance of the covenants under this Lease within
the Cure Period, except that as to any non-monetary default which by its nature
cannot be cured within the Cure Period, the time for curing such default shall
be extended for such period as may be required to cure the non-monetary default
by the exercise of reasonable diligence and dispatch, but not beyond a total
Cure Period of sixty (60) days.

      17.3 REMEDIES OF LANDLORD AND WAIVER OF REDEMPTION. If Tenant fails to
cure such default within the applicable Cure Period, then Landlord may serve a
written five (5) day notice of cancellation of this Lease upon Tenant and upon
the expiration of said five (5) days, this Lease and the Term hereunder 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 Premises
to Landlord, but Tenant shall remain liable as hereinafter provided. If the Term
shall expire as aforesaid; or if Tenant shall default in payment of the Base
Rental reserved herein or any item of Additional Rental herein mentioned or any
part of either or in making any other payment herein required; then and in any
of such events Landlord may without notice, re-enter the Premises either by
force or other legal proceedings as Landlord may elect, and dispossess Tenant by
summary proceedings or otherwise, and the legal representative of Tenant or
other occupant of the Premises and remove their effects and hold the Premises as
if this Lease had not been made, and Tenant hereby waives the service of notice
of intention to re-enter or to institute legal proceedings to that end.

      17.4 In case of any such default, re-entry, expiration and/or dispossess
by summary proceedings or otherwise, (a) the Base Rental and Additional Rental,
shall become due thereupon and be paid up to the time of such re-entry,
dispossess and/or expiration, (b) Landlord may re-let the premises or any part
or parts thereof, either in the name of Landlord or otherwise, for a term or
terms, which may at Landlord'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 a higher rental than that in this
Lease, and/or (c) Tenant or the legal representatives of Tenant shall also pay
Landlord as liquidated damages for the failure of Tenant to observe and perform
said Tenant's covenants herein contained any deficiency between the rent hereby
reserved and/or covenanted to be paid and the net amount, if any, of the rents
collected on account of the subsequent lease or leases of the Premises for each
month of the period which would otherwise have constituted the balance of the
term of this Lease. The failure of Landlord to re-let the Premises or any part
or parts thereof shall not release or affect Tenant's liability for damages. In
computing such liquidated damages there shall be added to the said deficiency
such expenses as Landlord incurs in connection with re-letting, such as legal
expenses, reasonable attorneys' fees, brokerage, advertising and for keeping the
Premises in good order or for preparing 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. Landlord, in putting the Premises in good order or
preparing the same for re-rental may, at Landlord's option, make such
alterations, repairs, replacements, and/or decorations in the Premises as
Landlord, in Landlord's sole judgment, considers advisable and necessary for the
purpose of re-letting the Premises, and the making of such alterations, repairs,
replacements, and/or decorations shall not operate or be construed to release
Tenant from liability. Landlord shall in no event be liable in any way
whatsoever for failure to re-let the Premises, or in the event that the 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
rent collected over the sums payable by Tenant to Landlord hereunder. In the
event of a breach or threatened breach by Tenant of any of the covenants or
provisions hereof, Landlord 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 this
Lease of any particular remedy shall not preclude Landlord 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.

                                  ARTICLE XVIII

                      PROTECTION OF LANDLORD'S MORTGAGEES;
                      NON-DISTURBANCE AGREEMENT: ATTORNMENT

      18.1 SUBORDINATION. This Lease shall be subject and subordinate to any
mortgages or deeds of trust that may have been placed upon Landlord's interest
in and to the Building and/or

                                       19

<PAGE>

Land, including the Premises, and to any advances to be made thereunder, and to
any interest thereon, and to all renewals, replacements, and extensions thereof;
provided, however, that Landlord's Mortgagee may elect by written notification
to Tenant to give the right and interest of Tenant under this Lease priority
over the lien of its mortgage or deed of trust. With regard to future mortgages,
the Landlord will use its good faith efforts to obtain a non-disturbance
agreement for and in behalf of Tenant, provided however, that Landlord shall not
be obligated to pay any consideration or to institute any legal proceedings to
obtain any such non-disturbance agreement and Tenant shall pay the reasonable
cost of such mortgagee's attorney and recording fees and the reasonable cost
incurred by Landlord in obtaining such subordination, non-disturbance and
attornment agreement. In addition, Tenant agrees that such mortgagee's standard
form of non-disturbance and attornment agreement shall be acceptable to Tenant.

      18.1.1 If, at any time prior to the expiration or sooner termination of
this Lease, the holder of any lease or mortgage to which this Lease is
subordinate, shall succeed to the rights of Landlord under this Lease through
possession or foreclosure or otherwise, Tenant agrees, at the election and upon
request of any such lessor or mortgagee, from time to time, to fully and
completely attorn to and recognize any such lessor and mortgagee as Tenant's
Landlord under this Lease upon the then executory terms of this Lease; provided
such lessor or mortgagee shall agree in writing to accept Tenant's attornment.
Upon such attornment, this Lease shall continue in full force and effect as a
direct lease between such lessor or mortgagee (or their successors and assigns)
upon all of the then executory terms of this Lease except that such lessor or
mortgagee (and their successors and assigns) shall not be (a) liable for any
previous act or omission or negligence of Landlord under this Lease; (b) subject
to any counterclaim, defense or offset, which theretofore shall have accrued to
Tenant against Landlord; (c) bound by any previous modification or amendment of
this Lease or by any previous prepayment of more than one month's rent, unless
such modification or prepayment shall have been approved in writing by such
lessor or mortgagee (or such successor and assigns); (d) liable for any security
deposited pursuant to this Lease unless such security has actually been
delivered to such lessor or mortgagee (or such successors and assigns); (e)
obligated to repair the Premises or the Building or any part thereof, in the
event of total or substantial total damage beyond such repair as can reasonably
be accomplished from the net proceeds of insurance actually made available to
such lessor or mortgagee (or such successors and assigns); or (f) obligated to
repair the Premises or the Building or any part thereof, in the event of partial
condemnation beyond such repair as can reasonably be accomplished from the net
proceeds of any award actually made available such lessor or mortgagee (or their
successors and assigns), as consequential damages allocable to the part of the
Premises or the Building not taken. Nothing contained in this Article shall be
construed to impair any right or remedy otherwise exercisable by any such lessor
or mortgagee (or their successors or assigns).

      18.2 NECESSARY INSTRUMENTS. Although Section 19.1 hereof is
self-executing, Tenant shall execute and deliver whatever reasonable instruments
may be required by Landlord's Mortgagee for the purposes of evidencing the
subordination of this Lease or making this Lease superior within ten (10) days
of written notice by Landlord's Mortgagee.

                                   ARTICLE XIX

                                    ESTOPPELS

      19.1 ESTOPPEL CERTIFICATES. Each party agrees promptly following any
request by the other to execute and deliver to Landlord an estoppel certificate
(i) certifying that this Lease is unmodified and in full force and effect, or,
if modified, stating the nature of such modification and certifying that this
Lease, as so modified, is in full force and effect and the date to which the
rent and other charges are paid in advance, if any, and (ii) acknowledging that
there are not any uncured defaults on the part of the other party hereunder, or
so specifying such defaults, if any, as are claimed. A party's failure to
deliver an estoppel certificate within such time shall be an admission by such
party that this Lease is in full force and effect, without modification except
as may be represented; there are, to executing party's knowledge, no uncured
defaults in the other party's performance; and no rent has been paid in advance
except as set forth in this Lease.

                                       20

<PAGE>

                                   ARTICLE XX

                              DAMAGE OR DESTRUCTION

      20.1 DAMAGES AND DESTRUCTION. (a) Subject to the terms of Master Lease and
Main Lease and to the terms of any mortgage which may now or hereafter encumber
Landlord's interest in all or any portion of the land and/or building, in the
event that the Premises or the Building are damaged by fire or other insured
casualty, the damage shall be repaired by and at the expense of Landlord so that
the building shall be as nearly as possible, or better than, the value,
condition and character of the Building immediately prior to the damage,
provided such repairs can, in Landlord's reasonable opinion, be completed within
one (1) year after the occurrence of such damage, without the payment of
overtime or other premiums. If the repairs cannot, in Landlord's reasonable
opinion, be made within said one (1) year period, or if same occurs within
twelve (12) months or less prior to the stated expiration date of the term,
Landlord shall notify Tenant within forty-five (45) days of the date of
occurrence of such damage as to whether or not Landlord shall have elected to
make such repairs. If Landlord elects not to make such repairs, then this Lease
shall be deemed canceled effective thirty (30) days after the date that Landlord
has notified Tenant of its election not to make such repairs. If this Lease is
not terminated as aforesaid, then this Lease shall be deemed canceled effective
thirty (30) days after the date that Landlord has notified Tenant of its
election not to make such repairs. If this Lease is not terminated as aforesaid,
there shall be no abatement of the Monthly Base Rental or Additional Rental and
no liability of Landlord by reason of any inconvenience, temporary limitation of
access or interference to or with Tenant's business or property arising from the
making of any necessary repairs, or any alterations or improvements in or to any
portion of the Building or the Premises, or in or to fixtures, appurtenances and
equipment therein necessitated by such damage. Tenant understands that Landlord
will not carry insurance of any kind on Tenant's furniture and furnishings or on
any fixtures or equipment owned by Tenant, and that Landlord shall not be
required to repair any damage caused by fire or other cause, or shall make any
repair or replacement to or of improvements installed in the Premises by or for
Tenant at Tenant's cost. Provided, however, the Monthly Base Rental will abate
to the extent that Landlord actually receives proceeds of the rent insurance
policy. If Landlord fails to substantially complete the repairs within four
hundred and eighty (480) days (the same may be extended as set forth below) of
the date of such fire or other casualty, the Landlord shall have the right by
written notice to cancel this Lease as of the date of such notice, such notice
to be delivered within fifteen (15) days following the expiration of such 480
day period. In addition, Tenant shall have a right to cancel this Lease if
Landlord fails to substantially complete such repairs within such 48O day period
(the same may be extended as set forth below) by written notice to Landlord
delivered within 15 days at the end of such 480 day period provided that such
fire or other casualty was not caused by the acts or omissions of Tenant or its
employees, principals, servants, contractors, agents, customers, vendors,
licensees or invitees. Notwithstanding the foregoing, such 480 day period shall
be extended for any delays in substantially completing such repairs caused by
the acts or omissions of Tenant or its employees, principals, servants,
contractors, agents, customers, vendors, licensees or invitees and, in addition,
such 480 day period shall be extended by reason of the events set forth or
encompassed by Article XXII.

      20.2 LIMITATION ON OBLIGATION TO REBUILD. Notwithstanding anything to the
contrary contained in this Article, if 25% or more of the Building damaged by
fire or other casualty and, at such time, the term has less than two (2) years
until it expires, Landlord shall not be obligated to rebuild or repair the
Building. Landlord will notify Tenant of its election as to whether or not it
elects to rebuild the Building, within forty-five (45) days of the fire or other
casualty and, if Landlord elects not to rebuild the Building, this Lease shall
be terminated and of no further force or effect, as of the date which is
forty-five (45) days following the sending of Landlord's notice.

                                   ARTICLE XXI

                                  CONDEMNATION

      21.1 DEFINITIONS. For purposes of this Article XXI, the following terms
shall have the respective meanings set forth below:

                  (a) "Award" means the amount of any award made, consideration
paid, or damages ordered as a result of a Taking;

                                       21

<PAGE>

                  (b) "Date of Taking" means the date upon which title to the
Premises, or a portion thereof, passes to and vests in the condemnor or the
effective date of any order for possession if issued prior to the date title
vests in the condemnor;

                  (c) "Partial Permanent Taking" means the Taking of only a
portion of the Premises which does not constitute a Total Permanent Taking;

                  (d) "Partial Temporary Taking" means the Taking of any part of
the Premises for a temporary term;

                  (e) "Taking" means a taking of the Premises or any damage
related to the exercise of the power of eminent domain and including a voluntary
conveyance to any agency, authority, public utility, person, or corporate entity
empowered or condemn property in lieu of court proceedings;

                  (f) "Total Permanent Taking" means the Taking of the entire
Premises or so much of the Premises as to prevent or substantially impair the
use thereof by Tenant; a Taking of over fifty (50%) percent or more of the
Building shall be deemed to be total for purposes hereof; and

                  (g) "Total Temporary Taking" means the Taking of all of the
Premises for a temporary term.

      21.2 TOTAL PERMANENT TAKING. Subject to Article XXI, in the event of a
Total Permanent Taking during the Term of this Lease (or Total Temporary Taking
for a period ending on or subsequent to the end of the Term of this Lease) the
following shall occur: (a) the rights of Tenant under the Lease and the
leasehold estate of Tenant in and to the Premises shall cease and terminate as
of the Date of Taking; (b) Landlord shall refund to Tenant any prepaid rent; (c)
Tenant shall pay to Landlord any rent or charges due Landlord under the Lease,
each prorated as of the Date of Taking; and (d) Landlord's Mortgagee shall be
paid from the Award the amount due on the mortgage on the Building.

      21.3 PARTIAL PERMANENT TAKING. In the event of a Partial Permanent Taking
of the Premises during the Term of this Lease (or Partial Temporary Taking for a
period ending on or subsequent to the end of the Term of this Lease) the
following shall occur: (a) the rights of Tenant under the Lease and the
leasehold estate of Tenant in and to the portion of the Premises taken shall
cease and terminate as of the Date of Taking; (b) from and after the Date of
Taking the Monthly Base Rental shall be adjusted so that Tenant shall be
required to pay for the remainder of the Term the same portion of the Monthly
Base Rental as the number of square feet in the Premises remaining after the
condemnation bears to the number of square feet in the Premises at the date of
condemnation (and Tenant's Proportionate Share shall be similarly reduced); and
(c) Landlord's Mortgagee shall receive from the Award a proportionate share of
the total amount due on the mortgage on the Building;

      21.4 TEMPORARY TAKING -- PERIOD ENDING BEFORE EXPIRATION OF LEASE. In the
event of a Total or Partial Temporary Taking during the term of this Lease for a
period ending on or before the expiration of the Term of this Lease, the
following shall occur: (a) this Lease shall continue in full force and effect;
(b) the Award shall be paid to Landlord; (c) the Monthly Base Rental and
Additional Rental which become due during the period of the Temporary Taking
shall be reduced by the amount of the Award; (d) any excess of the Award over
the amount of the Monthly Base Rental and Additional Rental which becomes due
during the period of the Temporary Taking shall be the property of Landlord; and
(e) if the Award is not sufficient to pay the Monthly Base Rental and Additional
Rental and other obligations as they become due during the period of the
Temporary Taking, any deficiency shall be paid by Tenant to Landlord as the rent
becomes due.

      21.5 AWARD. Except as otherwise provided herein, including Section 21.6,
in the event of any Taking of the Premises hereunder, Landlord and Tenant shall
each have the right to represent its respective interests in each proceeding or
negotiation with respect to a taking or intended taking and to make full proof
of its claims. Except as otherwise provided herein, including Section 21.6,
Landlord and Tenant each reserve the right to apply for and seek separate awards
in

                                       22

<PAGE>

order to compensate them for their loss pursuant to the Taking, and in such
event, neither Landlord nor Tenant shall have any interest in or claim on any
part of the condemnation award given to the other party, whether such award is
granted by negotiation or after exhaustion of a party's rights and remedies
under the law. Except as otherwise provided herein, including Section 21.6,
however, if Landlord and Tenant jointly file for the award, then the parties
shall share in the award in accordance with the decision of the condemning
authority, or the applicable court of competent jurisdiction, if after the
exhaustion of all of the rights and remedies of the parties under the law. If
the award is negotiated, neither party shall consent to agree, settle, sell or
transfer the Premises to or accept an award from the condemning authority
without the prior written consent of the other party, which consent shall not be
unreasonably withheld. Finally, if there is a Partial Permanent Taking and it
requires restructuring and repairs to part of the Premises, the cost of such
restructuring and repair shall be paid pro rata out of any award given to
Landlord and Tenant.

      21.6 Tenant shall not be entitled to any award or proceeds accruing to
Landlord in connection with any eminent domain proceedings. Tenant may bring its
own proceeding only for the recovery of any damages sustained by it for loss of
inventory or equipment or other trade fixtures installed by Tenant and Tenant's
relocation expenses and Tenant hereby waives any other award. Without limiting
the foregoing, Tenant shall not have the right to an Award for loss of its
leasehold interest. Tenant shall not share in Landlord's award and Landlord
shall not share in Tenant's award which shall be limited as aforesaid.

      21.6 Tenant shall not be entitled to any award or proceeds accruing to
Landlord in connection with any eminent domain proceedings. Tenant may bring its
own proceeding only for the recovery of any damages sustained by it for loss of
inventory or equipment or other trade fixtures installed by Tenant and Tenant's
relocation expenses and Tenant hereby waives any other award. Without limiting
the foregoing, Tenant shall not have the right to an Award for loss of its
leasehold interest. Tenant shall not share in Landlord's award and Landlord
shall not share in Tenant's award which shall be limited as aforesaid.

                                  ARTICLE XXII

                                  FORCE MAJEURE

      Without limiting the generality and effect of the provisions of this
Lease, in the event that Landlord shall be delayed hindered, or prevented from
the performance of any act required hereunder by reason of Acts of God, fire,
unavoidable casualties, unusual weather or abnormal climatic conditions,
strikes, lock outs, labor disputes, labor troubles, inability to procure
materials, failure of power, restrictive governmental laws of regulations,
riots, insurrection, war, or by any act, omission or delay or other reason of
like nature beyond the control of the party, then the performance of such acts
shall be excused for the period of the delay and the period for the performance
of any such act shall be extended for a period equivalent to the period of such
delay.

                                  ARTICLE XXIII

                                SECURITY DEPOSIT

      23.1 SECURITY DEPOSIT. Tenant has deposited with Landlord the sum of
$119,289.60 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 Base Rental and
Additional Rental, and fails to cure such default within the applicable Cure
Period, Landlord may use, apply or retain the whole or any part of the security
as deposited to the extent required for the payment of any Base Rental and
Additional Rental or any other sum as to which Tenant is in default or for any
sum which Landlord may expend or may be required to expend by reason of Tenant's
default in respect to any of the terms, covenants, and conditions of this Lease,
including but not limited to, any damages or deficiency in the subletting of the
Premises, whether such damages or deficiency accrues before or after summary
proceedings or

                                       23

<PAGE>

other re-entry by Landlord and without limiting Landlord's other rights and
remedies, Tenant shall within three (3) days of receipt of written demand pay to
Landlord the amount of such security which has been used or applied by Landlord.
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 this Lease and after
delivery of the entire possession of the Premises to Landlord. In the event of a
sale of the Land and Building or leasing of the Building of which the Premises
form a part, Landlord shall have the right to transfer upon prior notice to
Tenant, the security to the vendee or lessee and Landlord shall thereupon be
released by Tenant from all liability for the return of such security and Tenant
agrees to look to the new landlord 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 landlord. Tenant further covenants that
it will not assign or encumber or attempt to assign or encumber the monies
deposited herein as security and that neither Landlord nor its successors or
assigns shall be bound by any such assignment, encumbrance, attempted assignment
or attempted encumbrance.

                                  ARTICLE XXIV

                               GENERAL PROVISIONS

      24.1 NOTICE. Any notice or request (hereinafter severally and collectively
called "notice") in this Lease provided for or permitted to be given, made or
accepted by either party to the other must be in writing and shall, unless
otherwise in this Lease expressly provided, be given or be served by depositing
same in the United States mail, postpaid and certified and addressed to the
party to be notified, with return receipt requested, or by delivering the same
in person to such party (or, in the case of a corporate or partnership party, to
an officer or general partner of such party, as the case may be), or by prepaid
telegram, or nationally recognized overnight courier, addressed to the party to
be notified or by facsimile transmission. Notice given in any other manner shall
be effective only if and when received by the party to be notified. For purposes
of notice, the addresses of the parties shall, until changed as herein provided,
be as follows:

      For Tenant:        Fashion Marketing, Inc.
                         c/o FMI Inc.
                         800 Federal Blvd.
                         Carteret, NJ 07008
                         Fax No. (732) 750-4338

                         with a copy to:

                         William L. Bricker, Jr., Esq.
                         c/o Curtis, Mallet-Provost, Colt & Mosle, LLP
                         101 Park Avenue
                         New York, NY 10178
                         Tel No.: (212) 696-6000
                         Fax No.: (212) 697-1559

      For Landlord:      M. Parisi & Son Construction Co., Inc.
                         54-56 48th Street
                         Maspeth, New York 11378
                         Fax No.: (718) 785-5878

                         with a copy to:

                         Michael D. Blaymore, Esq.
                         Salamon, Gruber, Newman & Blaymore, P.C.
                         97 Powerhouse Road, Suite 102
                         Roslyn Heights, NY 11577
                         Tel No.: (516) 625-1700
                         Fax No.: (516) 625-1795

                                       24

<PAGE>

      The parties and their successors and assigns shall have the right from
time to time and at anytime to change their addresses by at least fifteen (15)
days' written notice to the other party.

      24.2 Any notices and other communications to be delivered by either party
to the other pursuant to this Lease shall be in writing and shall be deemed
delivered as follows, except as otherwise specifically provided in this Lease:
(a) when hand delivered or telecopied; (b) one (1) business day after mailing by
Federal Express or other overnight courier service; or (c) three (3) business
days after deposit in the United States mail by registered or certified mail,
postage prepaid, return receipt requested, addressed to the party to be charged
with notice at the above-recited address or the above-recited telecopier number
or such other address or telecopier number as either party from time to time may
designate by notice delivered to the other; provided, however, that no notice of
change of address or telecopier number shall be deemed given until received by
the party to be notified. Except as otherwise specifically provided herein, in
the computation of any period of time which shall be required or permitted
hereunder or under any law for any notice or other communication or for the
performance of any term, condition, covenant or obligation, the day from which
such period runs shall be excluded and the last day of such period shall be
included unless it is a Saturday, Sunday or legal holiday, in which case the
period shall be deemed to run until the end of the next day which is not a
Saturday, Sunday or legal holiday in which case the period shall be deemed to
run until the next following business day.

      24.3 Intentionally Omitted.

      24.4 BROKER'S COMMISSION. Landlord represents and warrants to Tenant that
Landlord has dealt with no broker, person, finder or entity in connection with
this transaction other than Bagnato Realty Services, LLC ("Broker"). Landlord
shall indemnify, defend and hold Tenant harmless from and against any and all
claims, losses or damages relating to or arising out of any claim for
commission, finder's fee or other compensation by any other broker, person or
entity claiming by or through Landlord. Tenant represents and warrants to
Landlord that Tenant has dealt with no broker, person, finder or entity in
connection with this transaction other than Bagnato Realty Services, LLC. Tenant
shall indemnify, defend and hold Landlord harmless from and against any and all
claims, loss, or damage relating to or arising out of any claim for commission,
finder's fee or other compensation by any broker, person or entity arising out
of Tenant's acts with said broker. Landlord will pay any commission due Broker
pursuant to a separate agreement. This section shall survive the expiration of
the Lease.

      24.5 RIGHTS OF SUCCESSORS AND ASSIGNS. Each of the provisions of this
Lease shall extend to and shall, as the case may require, bind and inure to the
benefit of the parties hereto and their respective successors, heirs and legal
representatives, and in case of an assignment or sublease is consented to in
writing by Landlord (to the extent required by this Lease), to Tenant's assigns
and sublessees. Landlord shall have the right to transfer and assign, in whole
or in part, all its rights and obligations hereunder and in such event and upon
such transfer, Landlord shall be released from any further obligations
hereunder, and Tenant agrees to look solely to such successor in interest of
Landlord for the performance of obligations thereafter accruing.

      24.6 SEVERABILITY AND CAPTIONS. If any clause or provision of this Lease
contract, or the application thereof to any person or circumstance, shall, to
any extent, be illegal, invalid or unenforceable under present or future laws
effective during the Term of this Lease, then and in that event, it is the
intention of the parties hereto that the remainder of this Lease, or the
application of such term or provision to persons or circumstances other than
those as to whom or which it is held invalid or unenforceable, shall not be
affected thereby, and each term and provision of this Lease shall be valid and
enforced to the fullest extent permitted by law. The caption of each paragraph
hereof is added as a matter of convenience only and shall be considered to be of
no effect in the construction of any provision or provisions of this Lease.

      24.7 WAIVER. Either party to this Agreement may specifically waive (i) any
of the terms and conditions hereof or (ii) any of its rights hereunder or (iii)
any breach of the terms and conditions hereof, but no such waiver shall
constitute a wavier of any other right, remedy, term, condition or breach
hereunder. A waiving party may at any time, upon written notice to the other
party, reacquire future compliance in the manner previously waived in which
event, such other party shall comply as directed from that time forward. No
delay or omission in the

                                       25

<PAGE>

exercise or enforcement of any right or remedy hereunder by either party shall
be construed as a waiver of such right or remedy.

      24.8 GOVERNING LAW. This Lease and the rights and obligations of the
parties hereto shall be interpreted, construed and enforced in accordance with
the laws of the State of New York.

      24.9 RECORDATION OF LEASE. Tenant shall not record a memorandum, short
form lease or other notice of the lease or Tenant's interest therein with the
New York City Register for the County of Queens.

      24.10 REMEDIES CUMULATIVE. Each right and remedy provided for in this
Lease shall be cumulative and shall be in addition to every other right or
remedy provided for in this Lease or now or hereafter existing at law or in
equity or by statute or otherwise, including but not limited to injunctive
relief and specific performance.

      24.11 INTENTIONALLY OMITTED.

      24.12 PDC AND CITY DISAPPROVAL Promptly following the execution and
delivery of this Lease by both parties, Landlord agrees to send to both the PDC
and City, by certified mail, return receipt requested, a true copy of this Lease
with a letter which, in substance, requests the PDC and City to approve this
Lease. Simultaneous with the sending of such Lease and letter, Landlord shall
send true copies of same to Tenant by certified mail, return receipt requested,
and/or by a nationally recognized overnight courier. If the PDC and/or City
disapprove this Lease, this Lease shall be deemed cancelled and of no further
force or effect. Promptly following Landlord's receipt of the "green" return
receipt(s) from the PDC and City, Landlord shall send true copies of such return
receipt(s) to Tenant by certified mail, return receipt requested, and/or by a
nationally recognized overnight courier.

      24.13 FEES AND EXPENSES. If Tenant shall default beyond applicable notice
and cure period, 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, then, unless otherwise provided
elsewhere in this Lease, Landlord may after any required notice to perform the
obligation of Tenant hereunder (except in the event of an emergency, in which
case no notice shall be required), and if Landlord, in connection therewith 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 actions or proceedings, such sums so paid or obligations incurred
with interest and costs shall be deemed to be Additional Rent hereunder and
shall be paid by Tenant to Landlord within five (5) days of rendition of any
bill or statement to Tenant therefor, and if 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 Landlord as damages.

      24.14 SPRINKLERS. Anything elsewhere in this lease to the contrary
notwithstanding, if the New York Board of Fire Underwriters or the Insurance
Services Office or any bureau department or official of the federal, state or
city government require or recommend 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 premises, or for any other reason, or if any such
sprinkler system installations, changes, modifications, 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.

      24.14.1 Landlord represents to the best of its knowledge, without having
made any independent inquiry, that the sprinkler system in the Premises on the
date of this Lease complies with the National Fire Protection Rule Number 13.

                                       26

<PAGE>

      24.15 NO REPRESENTATIONS BY LANDLORD. Neither Landlord nor Landlord's
agents have made any representation or promises with respect to the physical
condition of the building, the land upon which it is erected or the Premises,
the rents, leases, expenses of operation, or any other matter or thing affecting
or related to the premises 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
buildings and the Premises and is thoroughly acquainted with their conditions
and agrees to take the same "as is" (with the exception of the performance of
Landlord's Warehouse Work, Landlord's Initial Office and Landlord Additional
Office Work) and acknowledges that the taking of possession of the 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
(and except as to the performance of Landlord's Warehouse Work, Landlord's
Initial Office Work and Landlord's Additional Office Work). All understandings
and agreements heretofore made between the parties hereto are merged in this
contract, which alone fully and completely expresses the agreement between
Landlord and Tenant and any executory agreement hereafter made shall be
ineffective to change, modify, discharge 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.

      24.16 WAIVER OF TRIAL BY JURY. It is mutually agreed between Landlord and
Tenant that Landlord and Tenant do hereby waive trial by jury in any action,
proceeding or counterclaim brought by either of the parties hereto against the
other on any matter whatsoever arising out of or in any way connected with this
Lease, the relationship of Landlord and Tenant, Tenant's use or occupancy of the
demised premises, and/or any other claims (except claims for personal injury or
property damage), and any emergency statutory or any other statutory remedy. It
is further mutually agreed that in the event Landlord commences a proceeding for
non-payment of Base Rental or Additional Rental by Tenant or any holdover by
Tenant, Tenant shall not interpose, any counterclaims of whatever nature or
description in any such proceeding except for compulsory counterclaims.

      24.17 Intentionally Omitted.

      24.18. Tenant shall not at any time prior to or during the term hereof,
either directly or indirectly, use any contractors or labor or materials whose
use in Landlord's reasonable judgment would create or creates any difficulty
with other contractors or labor employed by Tenant or Landlord or others in
construction, maintenance or operation of the demised Premises or the Building.

      24.19 Landlord shall execute a Waiver and Consent Letter in favor of
Tenant's "equipment" lender ("Lender") permitting the Lender to enter the
Premises to repossess equipment in the event of a default by Tenant under such
equipment loan, provided that such Waiver form shall obligate Lender to repair
all damage occasioned by such removal and repossession.

      24.20. If Tenant shall request Landlord's approval or consent and Landlord
shall fail or refuse to give such consent or approval, Tenant shall not be
entitled to any damages for any withholding or delay of such approval or consent
by Landlord, it being intended that Tenant's sole remedy shall be an action for
injunction or specific performance and that such remedy shall be available only
in those cases where Landlord shall have expressly agreed in writing not to
unreasonably withhold its consent or approval or where as a matter of law
Landlord may not unreasonably withhold its consent or approval. The provisions
of this Section 24.20 shall not apply if Landlord shall capriciously, or
arbitrarily or in bad faith withhold or delay its consent or approval.

      24.21. This Lease is offered to Tenant for signature with the
understanding that it shall not be binding upon either party unless and until
both parties shall have executed a copy of this Lease.

      24.22. This Lease shall be construed without regard to any presumption or
other rule requiring construction against the party causing this Lease to be
drafted. Each covenant, agreement, obligation or other provision of this Lease
on Tenant's part to be performed, shall be deemed and construed as a separate
and independent covenant of Tenant, not dependent on any

                                       27

<PAGE>

provision of this Lease. All terms and words used in this Lease, regardless of
the number or gender in which they are used, shall be deemed to include any
other number and any other gender as the context may require.

      24.23. If Tenant is in arrears in the payment of Base Rental or Additional
Rental, Tenant waives its right, if any, to designate the items in arrears
against which any payments made by Tenant are to be credited and Landlord may
apply any of such payments to any such items in arrears as Landlord, it its sole
discretion, shall determine, irrespective of any designation or request by
Tenant as to the items against which any such payments shall be credited.

      24.24. If Tenant is a corporation, each person executing this Lease on
behalf of Tenant hereby covenants, represents and warrants that Tenant is a duly
incorporated or duly qualified (if foreign) corporation and is authorized to do
business in the State of New York under the name "Fashion Marketing of New
York", a copy of evidence thereof to be supplied to Landlord upon request); and
that each person executing this Lease on behalf of Tenant is an officer of
Tenant and that he is duly authorized to execute, acknowledge and deliver this
Lease to Landlord (a copy of a resolution to that effect to be supplied to
Landlord upon request).

                                  ARTICLE XXVI

                             JURISDICTION AND VENUE

      26.1. Tenant agrees that IN PERSONAM jurisdiction in connection with any
action arising out of a default in any obligation of Tenant under this Lease
shall be obtained upon the mailing of a summons to Tenant by certified mail to
the Building and to the parties specified in Section 24.1. All summonses,
pleadings or other notices to Tenant arising from a default in any of its
obligations under this Lease may be mailed by certified mail to the addresses
set forth above and shall have the same effect as if served personally upon
Tenant.

      26.2 Tenant irrevocably and unconditionally (a) agrees that any suit,
action, or other legal proceeding arising out of this Lease may be commenced in
any court of the State of New York situated in Queens County and that any such
court shall have IN PERSONAM jurisdiction of Tenant in any such suit, action or
other legal proceeding upon service as described above; (b) consents to the
jurisdiction of each such court in any suit, action or other legal proceeding;
and (c) waives any objection which Tenant may have to the laying of venue of any
such suit, action or proceeding in any such court.

                                  ARTICLE XXVII

                                  NON-RECOURSE

      Tenant covenants and agrees that the liability of Landlord under this
Lease, and all matters or things pertaining to or arising out of the tenancy
and/or the use and occupancy of the Premises shall be limited solely to
Landlord's interest in the Premises as it exists at the time that such liability
arises. In no event shall Tenant make claim or demand against, or seek to impose
or satisfy any liability of Landlord against any other property, buildings or
assets of any kind whatsoever which Landlord or any of its principals,
co-tenants, partners, members, managers, shareholders, directors or officers own
or in which its principals, co-tenants, partners, members, managers,
shareholders, directors or officers have an interest.

                                       28

<PAGE>

LANDLORD;                           LANDLORD;
ATTEST OR WITNESS:
[ILLEGIBLE]                         M. PARISI & SON CONSTRUCTION CO., INC.
                                    By:  [ILLEGIBLE]
                                    Its  President

TENANT;                             TENANT;
ATTEST OR WITNESS:
[ILLEGIBLE]                         FASHION MARKETING, INC.
                                    By:  [ILLEGIBLE]
                                    Its  [ILLEGIBLE]EXHIBIT 10.40

                            AMB PROPERTY CORPORATION
                                INDUSTRIAL LEASE

1. Basic Provisions ["Basic Provisions").

      1.1 PARTIES: This Lease ("Lease") dated December 6, 1999, is made by and
between AMB Property, L.P., a Delaware limited partnership, ("Landlord") and FMI
Int'l (West) LLC, a Delaware limited liability company ("Tenant") (collectively,
the "Parties" or individually, a "Party").

      1.2 PREMISES: The premises ("Premises"), which are the subject of this
Lease, are located in the industrial center commonly known as WILMINGTON AVENUE
DISTRIBUTION (the "Industrial Center") and are more commonly known as 22351
Wilmington Avenue, Carson, California 90745. The Premises are:

            [X] Approximately 315,000 square feet of space, plus the parking
area as depicted on Exhibit A. This space is a part of the building ("Building")
which is also identified on Exhibit A.

                                       or

            [ ] All of the building ("Building") identified on Exhibit A,
consisting of approximately ____________ square feet.

If the Premises are all of the Building, there shall, for purposes of this
Lease, be no distinction between the words "Premises" or "Building." Tenant
shall have nonexclusive rights to the Common Areas (as defined in Paragraph 2.2
below) but shall not have any rights to the roof, exterior walls, or utility
raceways of the Building or to any other buildings in the Industrial Center. The
Industrial Center consists of the Premises, the Building, the Common Areas, the
land upon which they are located, and all other buildings and improvements
within the boundaries of the Industrial Center.

      1.3 TERM: Seven (7) years and one (1) month ("Term") commencing the later
of April 1, 2000 or substantial completion of tenant improvements by Landlord
("Commencement Date") and ending seven (7) years and one (1) month after the
Commencement Date ("Expiration Date").

      1.4 BASE RENT: $141,750.00 per month ("Base Rent"), $141,750.00 is
payable on March 1, 2000 for the second month of the Lease term, the first month
of the Lease term being free of Base Rent.

      1.5 TENANT'S SHARE OF OPERATING EXPENSES ("Tenant's Share"):

          (a)   Common Area Operating Expenses           100%
          (b)   Building Operating Expenses              100%

      1.6 TENANT'S ESTIMATED MONTHLY RENT PAYMENT: Following is the estimated
monthly Rent payment to Landlord pursuant to the provisions of this Lease. This
estimate is made at the inception of the Lease and is subject to adjustment
pursuant to the provisions of this Lease:

          (a)    Base Rent (Paragraph 4.1)              $ 141,750.00
          (b)    Operating Expenses (Paragraph 4.2,
                 Excluding Real Property Taxes,
                 Landlord Insurance, and HVAC)          $   2,375.00

          (c)    Landlord Insurance (Paragraph 8.3)     $  1, 102.00
          (d)    Real Property Taxes (Paragraph 10)     $  14,018.00
          (e)    HVAC maintenance (Paragraph 4.2)       $     125.00

                 Estimated Monthly Payment                           $159,370.00

      1.7 SECURITY DEPOSIT: $600,000.00 by an irrevocable letter of credit
("LC") in Landlord's favor in form and substance and from a financial
institution acceptable to Landlord ("Security Deposit"). Notwithstanding the
foregoing, if Tenant has not been in default beyond any applicable cure period
in any prior period of the term of the Lease, the amount of the LC shall be
reduced to $450,000.00 for months 31-60 of the term of the Lease and reduced to
$300,000.00 for months 61-84 of the term of the Lease.

      l.8 PERMITTED USE ("Permitted Use"): GENERAL OFFICE, WAREHOUSE,
DISTRIBUTION AND STORAGE OF OCEAN CONTAINERS, STORAGE CONTAINERS, TRUCK DRIVERS'
PERSONAL VEHICLES AND TRACTORS OUTSIDE OF THE BUILDING, PROVIDED SUCH USES ARE
IN COMPLIANCE WITH ALL LAWS AND FOR NO OTHER USE.

      1.9 GUARANTOR: FASHION MARKETING INC., A NEW JERSEY CORPORATION, AND
FASHION MARKETING LLC, A DELAWARE LIMITED LIABILITY COMPANY

                                      - 1 -

<PAGE>

      1.10 ADDENDA: Attached hereto are the following Addenda, all of which
constitute a part of this Lease:

           (a)   Addendum:   TENANT IMPROVEMENT ADDENDUM
           (b)   Addendum:   RENT ADJUSTMENT ADDENDUM
           (c)   Addendum:   OPTION TO EXTEND
           (d)   Addendum:   EARLY POSSESSION AND INDUCEMENT RECAPTURE ADDENDUM
           (e)   Addendum:   RENT ABATEMENT ADDENDUM

      l.11 EXHIBITS: Attached hereto are the following Exhibits, all of which
constitute a part of this Lease:

           Exhibit A:   Description of Premises.
           Exhibit B:   Commencement Date Certificate.
           Exhibit C:   Estoppel Certificate
           Exhibit D:   Hazardous Substances Questionnaire

      1.12 ADDRESS FOR RENT PAYMENTS: All amounts payable by Tenant to Landlord
shall, until further notice from Landlord, be paid to AMB Property Corporation
at the following address:

           AMB Property, L.P.
           Box 842524
           Dallas Texas 75284-2524

                                      - 2 -

<PAGE>

                                TABLE OF CONTENTS

                                                                            PAGE

1.  BASIC PROVISIONS                                                         1
    1.1     Parties                                                          1
    1.2     Premises                                                         1
    1.3     Term                                                             1
    1.4     Base Rent                                                        1
    1.5     Tenant's Share of Operating Expenses                             1
    1.6     Tenant's Estimated Monthly Rent Payment                          1
    1.7     Security Deposit                                                 1
    1.8     Permitted Use                                                    1
    1.9     Guarantor                                                        1
    1.10    Addenda                                                          1
    1.11    Exhibits                                                         2
    1.12    Address for Rent Payments                                        2
2.  PREMISES AND COMMON AREAS                                                3
    2.1     Letting                                                          3
    2.2     Common Areas - Definition                                        3
    2.3     Common Areas - Tenant's Rights                                   3
    2.4     Common Areas - Rules and Regulations                             3
    2.5     Common Area Changes                                              3
3.  TERM                                                                     3
    3.1     Term                                                             3
    3.2     Delay in Possession                                              3
    3.3     Commencement Date Certificate                                    3
4.  RENT                                                                     3
    4.1     Base Rent                                                        3
    4.2     Operating Expenses                                               4
5.  SECURITY DEPOSIT                                                         5
6.  USE                                                                      5
    6.1     Permitted Use                                                    5
    6.2     Hazardous Substances                                             5
    6.3     Tenant's Compliance with Requirements                            6
    6.4     Inspection: Compliance with Law                                  6
7.  MAINTENANCE, REPAIRS, TRADE FIXTURES, AND ALTERATIONS                    6
    7.1     Tenant's Obligations                                             6
    7.2     Landlord's Obligations                                           7
    7.3     Alterations                                                      7
    7.4     Surrender/Restoration                                            7
8.  INSURANCE; INDEMNITY                                                     7
    8.1     Payment of Premiums                                              7
    8.2     Tenant's Insurance                                               7
    8.3     Landlord's Insurance                                             7
    8.4     Waiver of Subrogation                                            7
    8.5     Indemnity                                                        8
    8.6     Exemption of Landlord from Liability                             8
9.  DAMAGE OR DESTRUCTION                                                    8
    9.1     Termination Right                                                8
    9.2     Damage Caused by Tenant                                          8
10. REAL PROPERTY TAXES                                                      8
    10.1    Payment of Real Property Taxes                                   8
    10.2    Real Property Tax Definition                                     8
    10.3    Additional Improvements                                          9
    10.4    Joint Assessment                                                 9
    10.5    Tenant's Property Taxes                                          9
11. UTILITIES                                                                9
12. ASSIGNMENT AND SUBLETTING                                                9
    12.1    Landlord's Consent Required                                      9
    12.2    Rent Adjustment                                                  9
13. DEFAULT; REMEDIES                                                        9
    13.1    Default                                                          9

                                      - 2A -

<PAGE>

                                TABLE OF CONTENTS

                                                                            PAGE

    13.2    Remedies                                                         10
    13.3    Late Charges                                                     10
14. CONDEMNATION                                                             10
15. ESTOPPEL CERTIFICATE AND FINANCIAL STATEMENTS                            10
    15.1    Estoppel Certificate                                             10
    15.2    Financial Statement                                              11
16. ADDITIONAL COVENANTS AND PROVISIONS                                      11
    16.1    Severability                                                     11
    16.2    Interest on Past-Due Obligations                                 11
    16.3    Time of Essence                                                  11
    16.4    Landlord Liability                                               11
    16.5    No Prior or Other Agreements                                     11
    16.6    Notice Requirements                                              11
    16.7    Date of Notice                                                   11
    16.8    Waivers                                                          11
    16.9    Holdover                                                         11
    16.10   Cumulative Remedies                                              12
    16.11   Binding Effect; Choice of Law                                    12
    16.12   Landlord                                                         12
    16.13   Attorneys' Fees and Other Costs                                  12
    16.14   Landlord's Access; Showing Premises; Repairs                     12
    16.15   Signs                                                            12
    16.16   Termination; Merger                                              12
    16.17   Quiet Possession                                                 12
    16.18   Subordination; Attornment; Non-Disturbance                       12
    16.19   Rules and Regulations                                            13
    16.20   Security Measures                                                13
    16.21   Reservations                                                     13
    16.22   Conflict                                                         13
    16.23   Offer                                                            13
    16.24   Amendments                                                       13
    16.25   Multiple Parties                                                 13
    16.26   Authority                                                        13

                                     - 2B -

<PAGE>

2. Premises and Common Areas.

      2.1 LETTING. Landlord hereby leases to Tenant and Tenant hereby leases
from Landlord the Premises upon all of the terms, covenants, and conditions, set
forth in this Lease. Any statement of square footage set forth in this Lease or
that may have been used in calculating Base Rent and/or Operating Expenses is an
approximation which Landlord and Tenant agree is reasonable, and the Base Rent
and Tenant's Share based thereon is not subject to revision whether or not the
actual square footage is more or less.

      2.2 COMMON AREAS - DEFINITION. "Common Areas" are all areas and facilities
outside the Premises and within the exterior boundary line of the Industrial
Center and interior utility raceways within the Premises that are provided and
designated by the Landlord from time to time for the general nonexclusive use of
Landlord, Tenant, and other tenants of the Industrial Center and their
respective employees, suppliers, shippers, tenants, contractors, and invitees.

      2.3 COMMON AREAS - TENANT'S RIGHTS. Landlord hereby grants to Tenant, for
the benefit of Tenant and its employees, suppliers, shippers, contractors,
customers, and invitees, during the term of this Lease, the nonexclusive right
to use, in common with others entitled to such use, the Common Areas as they
exist from time to time, subject to any rights, powers, and privileges reserved
by Landlord under the terms hereof or under the terms of any rules and
regulations or covenants, conditions, and restrictions governing the use of the
Industrial Center.

      2.4 COMMON AREAS - RULES AND REGULATIONS. Landlord shall have the
exclusive control and management of the Common Areas and shall have the right,
from time to time, to establish, modify, amend, and enforce reasonable Rules and
Regulations with respect thereto in accordance with Paragraph 16.19.

      2.5 COMMON AREA CHANGES. Landlord shall have the right, in Landlord's sole
discretion, from time to time:

            (a) To make changes to the Common Areas, including, without
limitation, changes in the locations, size, shape, and number of driveways,
entrances, parking spaces, parking areas, loading and unloading areas, ingress,
egress, direction of traffic, landscaped areas, walkways, and utility raceways;

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

            (c) To designate other land outside the boundaries of the Industrial
Center to be a part of the Common Areas;

            (d) To add additional buildings and improvements to the Common
Areas;

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

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

      Notwithstanding the foregoing or anything to the contrary contained in
this Lease, Landlord represents and warrants that there is no Common Area to
which this Lease is subject.

3. Term.

      3.1 TERM. The Commencement Date, Expiration Date, and Term of this Lease
are as specified in Paragraph 1.3.

      3.2 DELAY IN POSSESSION. If for any reason Landlord cannot deliver
possession of the Premises to Tenant by the Commencement Date, Landlord shall
not be subject to any liability therefor, nor shall such failure affect the
validity of this Lease or the obligations of Tenant hereunder. In such case,
Tenant shall not, except as otherwise provided herein, be obligated to pay Rent
or perform any other obligation of Tenant under the terms of this Lease until
Landlord delivers possession of the Premises to Tenant. The term of the Lease
shall commence on the earlier of (a) the date Tenant takes possession of the
Premises or (b) 10 days following notice to Tenant that Landlord is prepared to
tender possession of the Premises to Tenant. If possession of the Premises is
not delivered to Tenant within 60 days after the Commencement Date and such
delay is not due to Tenant's acts, failure to act, or omissions, Tenant may by
notice in writing to Landlord within 10 days after the end of said 60-day period
cancel this Lease and the parties shall be discharged from all obligations
hereunder. If such written notice of Tenant is not received by Landlord within
said 10-day period, Tenant's right to cancel this Lease shall terminate. The
term "possession" as used in this Paragraph 3.2 shall mean possession by Tenant
other than for the performance of any inspections and any work performed by
Tenant as provided herein prior to the Commencement Date.

      3.3 COMMENCEMENT DATE CERTIFICATE. At the request of Landlord, Tenant
shall execute and deliver to Landlord a completed certificate ("Commencement
Date Certificate") in the form attached hereto as Exhibit B.

4. Rent.

                                      - 3 -

<PAGE>

      4.1 BASE RENT. Tenant shall pay to Landlord Base Rent and other monetary
obligations of Tenant to Landlord under the terms of this Lease (such other
monetary obligations are herein referred to as "Additional Rent") in lawful
money of the United States, without offset or deduction, in advance on or before
the first day of each month. Base Rent and Additional Rent for any period during
the term hereof which is for less than one full month shall be prorated based
upon the actual number of days of the month involved. Payment of Base Rent and
Additional Rent shall be made to Landlord at its address stated herein or to
such other persons or at such other addresses as Landlord may from time to time
designate in writing to Tenant. Base Rent and Additional Rent are collectively
referred to as "Rent." All monetary obligations of Tenant to Landlord under the
terms of this Lease are deemed to be Rent.

      4.2 OPERATING EXPENSES. Tenant shall pay to Landlord on the first day of
each month during the term hereof, in addition to the Base Rent, Tenant's Share
of all Operating Expenses in accordance with the following provisions:

            (a) "Operating Expenses" are all costs incurred by Landlord in
accordance with the provisions of this Lease relating to the ownership and
operation of the Industrial Center, Building, and Premises including, but not
limited to, the following:

                  (i) The operation, repair, maintenance, and replacement in
neat, clean, good order, and condition of the Common Areas, including parking
areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways,
parkways, driveways, landscaped areas, striping, bumpers, irrigation systems,
drainage systems, lighting facilities, fences and gates, exterior signs, and
tenant directories; however, Operating Expenses shall exclude the costs of
improvements and/or replacements, as well as the removal of asbestos or other
Hazardous Substances and the purchase or leasing of any machinery, equipment,
vehicles, supplies, or the like, that, under generally accepted accounting
principles consistently applied, are required to be capitalized on the books and
records of Landlord (collectively, "Capital Items"), and excluding the costs of
rendering the Common Areas in compliance with the Americans with Disabilities
Act ("ADA"), to the extent that same shall not be in compliance therewith as of
the Commencement Date.

                  (ii) Water, gas, electricity, telephone, and other utilities
servicing the Common Areas; however, the rates charged by Landlord to Tenant
shall not exceed those that would have been payable by Tenant to the public
utility company furnishing such services, if such services were instead
furnished directly to Tenant.

                  (iii) Trash disposal, janitorial services, snow removal,
property management, and security services.

                  (iv) Reserves set aside for maintenance, repair, and
replacement of the Common Areas and Building, except that notwithstanding
Paragraph 6.4 herein reserves for environmental monitoring and/or insurance
programs, not caused by or arising out of Tenant's use of the Premises shall not
be included in reserves.

                  (v) Real Property Taxes.

                  (vi) Premiums for the insurance policies maintained by
Landlord under Paragraph 8 hereof.

                  (vii) Monthly amortization of capital improvements or Capital
Item to the Common Areas and the Building. The monthly amortization of any given
capital improvement or Capital Item shall be the sum of the (a) quotient
obtained by dividing the cost of the capital improvement by the number of months
of useful life of such improvement as determined by generally accepted
accounting principles consistently applied plus (b) an amount equal to the cost
of the capital improvement times 1/12 of the lesser of 12% or the maximum annual
interest rate permitted by law.

                  (viii) Maintenance of the Building including, but not limited
to, painting, caulking and repair of Building components, including, but not
limited to, roof, elevators, and fire detection and sprinkler systems.

                  (ix) Maintenance and repair of heating, ventilating, and air
conditioning systems ("HVAC").

                  (x) If Tenant fails to maintain the Premises in accordance
with the terms of the Lease, any expense incurred by Landlord for such
maintenance.

            (b) Tenant's Share of Operating Expenses that are not specifically
attributed to the Premises or Building ("Common Area Operating Expenses") shall
be that percentage shown in Paragraph 1.5(a). Tenant's Share of Operating
Expenses that are attributable to the Building ("Building Operating Expenses")
shall be that percentage shown in Paragraph 1.5(b). Landlord in its sole
discretion shall determine which Operating Expenses are Common Area Operating
Expenses, Building Operating Expenses, or expenses to be entirely borne by
Tenant.

                                      - 4 -

<PAGE>

            (c) Unless costs for such items are included in calculating
Operating Expenses, the inclusion of the improvements, facilities, and services
set forth in Subparagraph 4.2(a) shall not impose any obligation upon Landlord
either to have said improvements or facilities or to provide those services.

            (d) Tenant shall pay monthly in advance, on the same day that the
Base Rent is due, Tenant's Share of estimated Operating Expenses and HVAC
maintenance costs in the amount set forth in Paragraph 1.6. Landlord shall
deliver to Tenant within 90 days after the expiration of each calendar year a
reasonably detailed statement showing Tenant's Share of the actual Operating
Expenses incurred during the preceding year. Within thirty (30) days of receipt
by Landlord of Tenant's written request for the following, Landlord shall supply
to Tenant a statement showing (i) the actual amount of Building Operating
Expenses, Common Area Operating Expenses and Real Property Taxes (collectively
"Expenses") for the past calendar year, (ii) a reasonably detailed breakdown of
such Expenses; (iii) the amount of any overpayment to be credited to Tenant (if
the sum of the Estimated Operating Expenses made during such calendar year
exceeded the actual Operating Expenses with respect to such calendar year) or
the amount of any deficiency payable by Tenant to Landlord (if the actual
Operating Expenses with respect to a calendar year shall exceed the sum of the
estimated Operating Expenses made during such calendar year). If Tenants
estimated payments under this Paragraph 4(d) during the preceding year exceed
Tenant's Share as indicated on said statement, Tenant shall be credited the
amount of such overpayment against Tenant's Share of Operating Expenses next
becoming due. If Tenant's estimated payments under this Paragraph 4.2(d) during
said preceding year were less than Tenant's Share as indicated on said
statement, Tenant shall pay to Landlord the amount of the deficiency within 10
days after delivery by Landlord to Tenant of said statement. At any time
Landlord may adjust the amount of the estimated Tenant's Share of Operating
Expenses and HVAC maintenance costs to reflect Landlord's estimate of such
expenses for the year.

            (e) Notwithstanding the foregoing, Operating Expenses shall not
include (i) interest and amortization on mortgages and deeds of trust and other
debt costs on real estate or ground lease payments, if any; depreciation of
buildings and other improvements (except for amortization of capital
improvements or Capital Items as provided herein or any depreciation allowed by
generally accepted accounting principles consistently applied for the ownership
of industrial real property), or costs of any items to the extent Landlord
receives reimbursement from insurance proceeds or from a third party (such
proceeds to be deducted from Operating Costs in the year in which received);
(ii) corporation, inheritance, estate, succession, transfer, realty transfer
gains tax, gift, franchise, income or profit taxes (whether gross or net)
imposed upon Landlord to the extent such taxes are not in lieu of real property
taxes; penalties or interest on taxes caused by the failure of Landlord to make
timely payment, provided such failure to make timely payment was not a result of
Tenant's failure to make timely payment of Tenant's Share of Operating Costs or,
if assessed separately, real property taxes to Landlord; and mortgage lien
taxes, documentary stamp taxes, recording fees or the like; (iii) costs of
governmental compliance prior to Tenant's acceptance of possession of the
Premises (including, without limitation, with respect to the Americans with
Disabilities Act), remediation of hazardous materials not caused by Tenant or as
a result of Tenant's use or occupancy of the Premises. Further notwithstanding
the foregoing, Landlord shall, at its sole cost and expense, replace the roof
structure, the heating ventilating and air conditioning system and fire
sprinkler at such time as replacement is required in Landlord's reasonable
judgment and provided such replacement has not been primarily caused by Tenant's
failure to maintain such systems.

      4.3 BOOKS AND RECORDS; AUDIT. Landlord shall keep reasonably complete and
accurate books and records showing all Operating Expenses in accordance with
generally accepted accounting principles consistently applied, which books and
records shall be maintained and segregated on a year-to-year basis. Tenant shall
have the right to dispute in writing any specific item or items on any statement
of Operating Expenses submitted by Landlord to Tenant pursuant to Paragraph
4.2(d) above at any time during the period commencing upon the date upon which
such statement is submitted to Tenant and expiring, absent fraud, within one (1)
year thereafter ("Dispute Period"). Upon submission of a written dispute by
Tenant, if Landlord and Tenant cannot resolve such dispute within fifteen (15)
days of submission of such dispute to Landlord, Tenant may audit or have audited
Landlord's books and records relating to the disputed item(s). Such audit shall
take place within sixty (60) days of submission of such dispute to Landlord at
the place where Landlord's books and records are maintained upon at least ten
(10) business days' notice ("Audit Notice") to Landlord by Tenant. Such audit
shall take place during Landlord's normal business hours. The Audit Notice shall
include a detailed list of those items of Operating Expenses which Tenant is
disputing and

                                      - 5 -

<PAGE>

wishes to audit. In the event Tenant's audit discloses discrepancies, the
appropriate adjustments shall be made in Tenant's or Landlord's favor, as the
case may be. If such discrepancies are in excess of three (3%) percent in
Tenant's favor, Landlord shall reimburse Tenant for the cost of such audit and
pay Tenant interest at the maximum legal rate on the amount of such discrepancy.
If such discrepancies are in Landlord's favor, Tenant shall reimburse Landlord
for its costs in complying with Tenant's audit request. If Tenant fails to
dispute in writing, any item(s) within the Dispute Period, the statement for
that period shall be deemed final and conclusive and not subject to dispute or
audit. Landlord's and Tenant's obligations under this Paragraph 4.3 shall
survive the expiration or termination of the term.

5. Security Deposit. Tenant shall deposit with Landlord upon Tenant's execution
hereof the Security Deposit set forth in Paragraph 1.7 as security for Tenant's
faithful performance of Tenant's obligations under this Lease. If Tenant fails
to pay Base Rent or Additional Rent or otherwise defaults under this Lease (as
defined in Paragraph 13.1), Landlord may use the Security Deposit for the
payment of any amount due Landlord or to reimburse or compensate Landlord for
any liability, cost, expense, loss, or damage (including attorneys' fees) which
Landlord may suffer or incur by reason thereof. Tenant shall on demand pay
Landlord the amount so used or applied so as to restore the Security Deposit to
the amount set forth in Paragraph 1.7. Landlord shall not be required to keep
all or any part of the Security Deposit separate from its general accounts.
Landlord shall, at the expiration or earlier termination of the term hereof and
after Tenant has vacated the Premises, return to Tenant that portion of the
Security Deposit not used or applied by Landlord. No part of the Security
Deposit shall be considered to be held in trust, to bear interest, or to be
prepayment for any monies to be paid by Tenant under this Lease.

6. Use.

      6.1 PERMITTED USE. Tenant shall use and occupy the Premises only for the
Permitted Use set forth in Paragraph 1.8. Tenant shall not commit any nuisance,
permit the emission of any objectionable noise or odor, suffer any waste, make
any use of the Premises which is contrary to any law or ordinance, or which will
invalidate or increase the premiums for any of Landlord's insurance. Tenant
shall not service, maintain, or repair vehicles on the Premises, Building, or
Common Areas. Tenant shall not store foods, pallets, drums, or any other
materials outside the Premises. Notwithstanding the foregoing, Tenant may
perform basic preventative maintenance ("Maintenance") of tractors, trailers and
warehouse equipment. Maintenance shall be deemed to mean tractor, trailer and
forklift oil changes and grease maintenance, tire and brake replacement and
light repairs which shall in no event include engine, transmission or drivetrain
overhauls or rebuilding. All maintenance shall be performed by Tenant in the
area of the Premises which has been cross-hatcheted and identified as
"Maintenance Area" on Exhibit A which is attached to this Lease.

      6.2 HAZARDOUS SUBSTANCES.

            (a) REPORTABLE USES REQUIRE CONSENT. The term, "Hazardous
Substance," as used in this Lease, shall mean any product, substance, chemical,
material, or waste (including, without limitation, asbestos in any of its forms)
whose presence, nature, quantity, and/or intensity of existence, use,
manufacture, disposal, transportation, spill, release, or effect, either by
itself or in combination with other materials expected to be on the Premises,
the Common Areas and the Building is either: (i) potentially injurious to the
public health, safety or welfare, the environment, or the Premises; (ii)
regulated or monitored by any governmental authority or any substance defined as
a "hazardous substance" under the Comprehensive Environmental Response
Compensation and Liability Act, 41 U.S.C. 9601 ET. SEQ., as amended ("CERCLA");
or (iii) a basis for potential liability of Landlord to any governmental agency
or third party under any applicable statute or common law theory. Hazardous
Substance shall include, but not be limited to, hydrocarbons, petroleum,
gasoline, crude oil, or any products or by-products thereof. Tenant shall not
engage in any activity in or about the Premises which constitutes a Reportable
Use (as hereinafter defined) of Hazardous Substances without the express prior
written consent of Landlord and compliance in a timely manner (at Tenant's sole
cost and expense) with all Applicable Requirements (as defined in Paragraph
6.3). "Reportable Use" shall mean (i) the installation or use of any above or
below ground storage tank, (ii) the generation, possession, storage, use,
transportation, or disposal of a Hazardous Substance that requires a permit
from, or with respect to which a report, notice, registration, or business plan
is required to be filed with, any governmental authority, and (iii) the presence
in, on, or about the Premises of a Hazardous Substance with respect to which any
Applicable Requirements require that a notice be given to persons entering or
occupying the Premises or neighboring properties. Notwithstanding the foregoing,
Tenant may, without Landlord's prior consent, but upon notice to Landlord and in

                                      - 6 -

<PAGE>

compliance with all Applicable Requirements, use any ordinary and customary
materials reasonably required to be used by Tenant in the normal course of the
Permitted Use, so long as such use is not a Reportable Use and does not expose
the Premises or neighboring properties to any meaningful risk of contamination
or damage, or expose Landlord to any liability therefor. In addition, Landlord
may (but without any obligation to do so) condition its consent to any
Reportable Use of any Hazardous Substance by Tenant upon Tenant's giving
Landlord such additional assurances as Landlord, in its reasonable discretion,
deems necessary to protect itself, the public, the Premises, and the environment
against damage, contamination, injury, and/or liability therefor, including but
not limited to the installation (and, at Landlord's option, removal on or before
Lease expiration or earlier termination) of reasonably necessary protective
modifications to the Premises (such as concrete encasements) and/or the deposit
of an additional Security Deposit.

            (b) DUTY TO INFORM LANDLORD. Except as disclosed herein, if Tenant
knows, or has reasonable cause to believe, that a Hazardous Substance is located
in, under, or about the Premises or the Building, Tenant shall immediately give
Landlord written notice thereof, together with a copy of any statement, report,
notice, registration, application, permit, business plan, license, claim,
action, or proceeding given to, or received from, any governmental authority or
private party concerning the presence, spill, release, discharge of, or exposure
to such Hazardous Substance. Tenant shall not cause or permit any Hazardous
Substance to be spilled or released in, on, under, or about the Premises
(including, without limitation, through the plumbing or sanitary sewer system).

            (c) INDEMNIFICATION. Tenant shall indemnify, protect, defend, and
hold Landlord, Landlord's affiliates, Lenders, and the officers, directors,
shareholders, partners, employees, managers, independent contractors, attorneys,
and agents of the foregoing ("Landlord Entities") and the Premises harmless from
and against any and all damages, liabilities, judgments, costs, claims, liens,
expenses, penalties, loss of permits, and reasonable attorneys' and consultants'
fees arising out of or involving any Hazardous Substance on or brought onto the
Premises by or for Tenant or by any of Tenant's employees, agents, contractors,
servants, visitors, suppliers, or invitees (such employees, agents, contractors,
servants, visitors, suppliers, and invitees as herein collectively referred to
as "Tenant Entities"). Tenant's obligations under this Paragraph 6.2(c) shall
include, but not be limited to, the effects of any contamination or injury to
person, property, or the environment created or suffered by Tenant, and the cost
of investigation (including consultants' and reasonable attorneys' fees and
testing), removal, remediation, restoration and/or abatement thereof, or of any
contamination therein involved. Tenant's obligations under this Paragraph 6.2(c)
shall survive the Expiration Date or earlier termination of this Lease.

      6.3 TENANT'S COMPLIANCE WITH REQUIREMENTS. Except as otherwise provided in
this Lease, Tenant shall, at Tenant's sole cost and expense, fully, diligently,
and in a timely manner comply with all "Applicable Requirements," which term is
used in this Lease to mean all laws, rules, regulations, ordinances, directives,
covenants, easements, and restrictions of record and other requirements of the
various governmental departments and subdivisions having jurisdiction over the
operations of Tenant's business at the Premises, permits, the requirements of
any applicable fire insurance underwriter or rating bureau licensed by the State
of California, and the recommendations of Landlord's engineers and/or
consultants, relating in any manner to Tenant's use and/or occupancy of the
Premises (including but not limited to matters pertaining to (a) industrial
hygiene, (b) environmental conditions on, in, under, or about the Premises,
including soil and groundwater conditions, and (c) the use, generation,
manufacture, production, installation, maintenance, removal, transportation,
storage, spill, or release of any Hazardous Substance), now in effect or which
may hereafter come into effect. Tenant shall, within 5 days after receipt of
Landlord's written request, provide Landlord with copies of all documents and
information evidencing Tenant's compliance with any Applicable Requirements,
and shall immediately upon receipt notify Landlord in writing (with copies of
any documents involved) of any threatened or actual claim, notice, citation,
warning, complaint, or report pertaining to or involving failure by Tenant or
the Premises to comply with any Applicable Requirements.

      6.4 INSPECTION; COMPLIANCE WITH LAW. In addition to Landlord's
environmental monitoring and insurance program, the cost of which is included in
Operating Expenses, Landlord and the holders of any mortgages, deeds of trust,
or ground leases on the Premises ("Lenders") shall have the right to enter the
Premises at any time in the case of an emergency, and otherwise at reasonable
times, upon reasonable prior notice, for the purpose of inspecting the condition
of the Premises and for verifying compliance by Tenant with this Lease and all
Applicable Requirements. Landlord shall be entitled to employ experts and/or
consultants in connection therewith to advise Landlord with respect to Tenant's
installation, operation, use,

                                      - 7 -

<PAGE>

monitoring, maintenance, or removal of any Hazardous Substance on or from the
Premises. The cost and expenses of any such inspections shall be paid by the
party requesting same unless a violation of Applicable Requirements exists or is
imminent, or the inspection is requested or ordered by a governmental authority.
If such inspection has been requested by Tenant or by Landlord because of some
action of Tenant regarding Tenant's use or storage of any Hazardous Substance,
Tenant shall upon request reimburse Landlord or Landlord's Lender, as the case
may be, for the costs and expenses of such inspections.

7. Maintenance, Repairs, Trade Fixtures and Alterations.

      7.1 TENANT'S OBLIGATIONS. Subject to the provisions of Paragraph 7.2
(Landlord's Obligations), Paragraph 9 (Damage or Destruction), and Paragraph 14
(Condemnation), Tenant shall, at Tenant's sole cost and expense and at all
times, keep the Premises and every part thereof in good order, condition, and
repair (whether or not such portion of the Premises requiring repair, or the
means of repairing the same, are reasonable or readily accessible to Tenant and
whether or not the need for such repairs occurs as a result of Tenant's use, any
prior use, the elements, or the age of such portion of the Premises) including,
without limiting the generality of the foregoing, all equipment or facilities
specifically serving the Premises, such as plumbing, heating, ventilating,
electrical, lighting facilities, boilers, fired or unfired pressure vessels,
fire hose connectors if within the Premises, fixtures, interior walls, interior
surfaces of exterior walls, ceilings, floors, windows, doors, plate glass, and
skylights, but excluding any items which are the responsibility of Landlord
pursuant to Paragraph 7.2 below. Tenant's obligations shall include
restorations, replacements, or renewals when necessary to keep the Premises and
all improvements thereon or a part thereof in good order, condition, and state
of repair.

      7.2 LANDLORD'S OBLIGATIONS. Subject to the provisions of Paragraph 6
(Use), Paragraph 7.1 (Tenant's Obligations), Paragraph 9 (Damage or
Destruction), and Paragraph 14 (Condemnation), Landlord, at its expense and not
subject to the reimbursement requirements of Paragraph 4.2, shall keep in good
order, condition, and repair the roof structure, foundations and exterior walls
of the Building and utility systems within the Industrial Center. Landlord,
subject to reimbursement pursuant to Paragraph 4.2, shall keep in good order,
condition, and repair the air conditioning systems servicing the Premises,
Building roof membrane, and Common Areas.

      7.3 ALTERATIONS. Tenant shall not make nor cause to be made any
alterations or installations in, on, under, or about the Premises.

      7.4 SURRENDER/RESTORATION. Tenant shall surrender the Premises by the end
of the last day of the Lease term or any earlier termination date, clean and
free of debris and in good operating order, condition, and state of repair,
ordinary wear and tear excepted. Without limiting the generality of the above,
Tenant shall remove all personal property, trade fixtures, and floor bolts,
patch all floors, and cause all lights to be in good operating condition.

8. Insurance; Indemnity.

      8.1 PAYMENT OF PREMIUMS. The cost of the premiums for the insurance
policies maintained by Landlord under this Paragraph 8 shall be a Common Area
Operating Expense reimbursable pursuant to Paragraph 4.2 hereof. Premiums for
policy periods commencing prior to, or extending beyond, the term of this Lease
shall be prorated to coincide with the corresponding Commencement Date and
Expiration Date.

      8.2 TENANT'S INSURANCE.

            (a) At its sole cost and expense, Tenant shall maintain in full
force and effect during the Term of the Lease the following insurance coverages
insuring against claims which may arise from or in connection with the Tenant's
operation and use of the Premises.

                  (i) Commercial General Liability insurance with minimum limits
of $1,000,000 per occurrence and $3,000,000 general aggregate for bodily injury,
personal injury, and property damage. If required by Landlord, liquor liability
coverage will be included. Such insurance shall be endorsed to include Landlord
and Landlord Entities as additional insureds, shall be primary and
noncontributory with any Landlord insurance, and shall provide severability of
interests between or among insureds.

                  (ii) Workers' Compensation insurance with statutory limits and
Employers Liability with a $1,000,000 per accident limit for bodily injury or
disease.

                  (iii) Automobile Liability insurance covering all owned,
nonowned, and hired vehicles with a $1,000,000 per accident limit for bodily
injury and property damage.

                  (iv) Property insurance against "all risks" at least as broad
as the current ISO Special Form policy, including earthquake and flood, for loss
to any tenant improvements or betterments, floor and wall coverings, and
business personal property on a full insurable replacement cost basis with no
coinsurance clause, and Business Income insurance covering at least six months
of loss of income and continuing expense.

                                      - 8 -

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            (b) Tenant shall deliver to Landlord certificates of all insurance
reflecting evidence of required coverages prior to initial occupancy, and
annually thereafter.

            (c) If, in the reasonable opinion of Landlord's insurance advisor,
the amount or scope of such coverage is deemed inadequate at any time during the
Term, Tenant shall increase such coverage to such reasonable amounts or scope as
Landlord's advisor deems adequate.

            (d) All insurance required under Paragraph 8.2 (i) shall be issued
by insurers licensed to do business in the state in which the Premises are
located and which are rated A:VII or better by Best's Key Rating Guide and (ii)
shall be endorsed to provide at least 30-days prior notification of cancellation
or material change in coverage to said additional insureds.

      8.3 LANDLORD'S INSURANCE. Landlord may, but shall not be obligated to,
maintain "all risks" coverage as broad as the current ISO Special Form policy,
including earthquake and flood, covering the buildings within the Industrial
Center, the Common Areas and the Building, Commercial General Liability
insurance, and such other insurance in such amounts and covering such other
liability or hazards as deemed appropriate by Landlord. The amount and scope of
coverage of Landlord's insurance shall be determined by Landlord from time to
time in its sole but commercially reasonable discretion and shall be subject to
such deductible amounts as Landlord may reasonably elect. Landlord shall have
the right to reduce or terminate any insurance or coverage.

      8.4 WAIVER OF SUBROGATION. To the extent permitted by law and with
permission of their insurance carriers, Landlord and Tenant each waive any right
to recover against the other on account of any and all claims Landlord or Tenant
may have against the other with respect to property insurance actually carried,
or required to be carried hereunder, to the extent of the proceeds realized from
such insurance coverage.

      8.5 INDEMNITY. Tenant shall protect, defend, indemnify, and hold Landlord
and Landlord Entities harmless from and against any and all loss, claims,
liability, or costs (including court costs and attorneys' fees) incurred by
reason of:

            (a) any damage to any property (including but not limited to
property of any Landlord Entity) or death, bodily, or personal injury to any
person occurring in or about the Premises, the Building, or the Industrial
Center to the extent that such injury or damage shall be caused by or arise from
any actual or alleged act, neglect, fault, or omission by or of Tenant, its
agents, servants, employees, invitees, contractors, suppliers, subtenants, or
visitors;

            (b) the conduct or management of any work or anything whatsoever
done by the Tenant on or about the Premises or from transactions of the Tenant
concerning the Premises;

            (c) Tenant's failure to comply with any and all governmental laws,
ordinances, and regulations applicable to the condition or use of the Premises
or its occupancy; or

            (d) any breach or default on the part of Tenant in the performance
of any covenant or agreement to be performed pursuant to this Lease.

            The provisions of this Paragraph 8.5 shall, with respect to any
claims or liability accruing prior to such termination, survive the Expiration
Date or earlier termination of this Lease.

      8.6 EXEMPTION OF LANDLORD FROM LIABILITY. Except to the extent caused by
the gross negligence or willful misconduct of Landlord, Landlord shall not be
liable for and Tenant waives any claims against Landlord for injury or damage to
the person or the property of Tenant, Tenant Entities, or any other person in or
about the Premises, Building, or Industrial Center from any cause whatsoever,
including, but not limited to, damage or injury which is caused by or results
from (a) fire, steam, electricity, gas, water, or rain, or from the breakage,
leakage, seepage, back up of sewers or drains, obstruction, or other defects of
pipes, fire sprinklers, wires, appliances, plumbing, air conditioning, or
lighting fixtures or (b) from the condition of the Premises, other portions of
the Building, or Industrial Center. Landlord shall not be liable for any damages
arising from any act or neglect of any other tenant of Landlord nor from the
failure by Landlord to enforce the provisions of any other lease in the
Industrial Center. Notwithstanding Landlord's negligence or breach of this
Lease, Landlord shall under no circumstances be liable for injury to Tenant's
business, for any loss of income or profit therefrom, or any indirect,
consequential, or punitive damages.

      8.7 EXEMPTION OF TENANT FROM LIABILITY. Except to the extent caused by
the use of the railroad spur located at the Industrial Center by Tenant or
Tenant's Entities, Tenant shall not be liable for and Landlord waives any claims
against Tenant for injury or damage to the person or property of Landlord, or
any other person in or about the Premises, Building or Industrial Center from
any cause whatsoever arising out of or related to the use, maintenance, repair,
replacement or presence of such railroad spur at the Industrial Center.
Landlord's

                                      - 9 -

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obligations under this Paragraph 8.7 shall survive the Expiration Date or
earlier termination of the Lease

9. Damage or Destruction.

      9.1 TERMINATION RIGHT. Tenant shall give Landlord immediate written notice
of any damage to the Premises. Subject to the provisions of Paragraph 9.2, if
the Premises or the Building shall be damaged to such an extent that there is
substantial interference for a period exceeding 90 consecutive days with the
conduct by Tenant of its business at the Premises, Tenant, at any time prior to
commencement of repair of the Premises and following 10 days written notice to
Landlord, may terminate this Lease effective 30 days after delivery of such
notice to Landlord. Such termination shall not excuse the performance by Tenant
of those covenants which under the terms hereof survive termination. Rent shall
be abated in proportion to the degree of interference during the period that
there is such substantial interference with the conduct of Tenant's business at
the Premises. Abatement of rent and Tenant's right of termination pursuant to
this provision shall be Tenant's sole remedy for failure of Landlord to keep in
good order, condition, and repair the foundations and exterior walls of the
Building, Building roof, utility systems outside the Building, the Common Areas,
and HVAC.

      9.2 DAMAGE, CAUSED BY TENANT. Tenant's termination rights under Paragraph
9.1 shall not apply if the damage to the Premises or Building is the result of
any act or omission of Tenant or of any of Tenant's agents, employees,
customers, invitees, or contractors ("Tenant Acts"). Any damage resulting from a
Tenant Act shall be promptly repaired by Tenant. Landlord at its option may at
Tenant's expense repair any damage caused by Tenant Acts. Tenant shall continue
to pay all rent and other sums due hereunder and shall be liable to Landlord for
all damages that Landlord may sustain resulting from a Tenant Act.

10. Real Property Taxes.

      10.1 PAYMENT OF REAL PROPERTY TAXES. Landlord shall pay the Real
Property Taxes due and payable during the term of this Lease on the entire
assessor's parcel on which the Premises are located and, except as otherwise
provided in Paragraph 10.3, such payments shall be a Common Area Operating
Expense reimbursable pursuant to Paragraph 4.2.

      10.2 REAL PROPERTY TAX DEFINITION. As used herein, the term "Real Property
Taxes" is any form of tax or assessment, general, special, ordinary, or
extraordinary, imposed or levied upon (a) the Industrial Center or Building, (b)
any interest of Landlord in the Industrial Center or Building, (c) Landlord's
right to rent or other income from the Industrial Center or Building, and/or (d)
Landlord's business of leasing the Premises, Real Property Taxes include (a) any
license fee, commercial rental tax, excise tax, improvement bond or bonds, levy,
or tax; (b) any tax or charge which replaces or is in addition to any of such
above-described "Real Property Taxes," and (c) any fees, expenses, or costs
(including attorneys' fees, expert fees, and the like) incurred by Landlord in
protesting or contesting any assessments levied or any tax rate. Real Property
Taxes for tax years commencing prior to, or extending beyond, the term of this
Lease shall be prorated to coincide with the corresponding Commencement Date and
Expiration Date.

      10.3 ADDITIONAL IMPROVEMENTS. Operating Expenses shall not include Real
Property Taxes attributable to improvements placed upon the Industrial Center by
other tenants or by Landlord for the exclusive enjoyment of such other tenants.
Tenant shall, however, pay to Landlord at the time Operating Expenses are
payable under Paragraph 4.2, the entirety of any increase in Real Property Taxes
if assessed by reason of improvements placed upon the Premises by Tenant or at
Tenant's request.

      10.4 JOINT ASSESSMENT. If the Building is not separately assessed, Real
Property Taxes allocated to the Building shall be an equitable proportion of the
Real Property Taxes for all of the land and improvements included within the tax
parcel assessed.

      10.5 TENANT'S PROPERTY TAXES. Tenant shall pay prior to delinquency all
taxes assessed against and levied upon Tenant's improvements, fixtures,
furnishings, equipment, and all personal property of Tenant contained in the
Premises or stored within the Industrial Center.

11. Utilities. Tenant shall pay directly for all utilities and services supplied
to the Premises, including but not limited to electricity, telephone, security,
gas, and cleaning of the Premises, together with any taxes thereon.

12. Assignment and Subletting.

      12.1 LANDLORD'S CONSENT REQUIRED.

            (a) Tenant shall not assign, transfer, mortgage, or otherwise
transfer or encumber (collectively, "assign") or sublet all or any part of
Tenant's interest in this Lease or in the Premises without Landlord's prior
written consent, which consent shall not be unreasonably withheld. Relevant
criteria in determining reasonability of consent include, but are not limited
to, credit history of a proposed assignee or sublessee, references from prior
landlords, any change or intensification of use of the Premises or the Common
Areas, and any limitations

                                     - 10 -

<PAGE>

imposed by the Internal Revenue Code and the Regulations promulgated thereunder
relating to Real Estate Investment Trusts. Assignment or sublet shall not
release Tenant from its obligations hereunder. Tenant shall not (i) sublet,
assign, or enter into other arrangements in which the amounts to be paid by the
sublessee or assignee thereunder would be based, in whole or in part, on the
income or profits derived by the business activities of the sublessee or
assignee; (ii) sublet the Premises or assign this Lease to any person or entity
in which Landlord owns an interest, directly or indirectly (by applying
constructive ownership rules set forth in Section 856(d)(5) of the Internal
Revenue Code (the "Code"); or (iii) sublet the Premises or assign this Lease in
any other manner which could cause any portion of the amounts received by
Landlord pursuant to this Lease or any sublease to fail to qualify as "rents
from real property" within the meaning of Section 856(d) of the Code, or which
could cause any other income received by Landlord to fail to qualify as income
described in Section 856(c)(2) of the Code. The requirements of this Section
12.1 shall apply to any further subleasing by any subtenant. Notwithstanding the
foregoing, in the event of any assignment or subletting to which Landlord
consents, Landlord shall receive fifty percent (50%), the event of a sublease,
of any rent received by Tenant above the rent then being paid by Tenant to
Landlord less any commissions or marketing expense paid by Tenant for such
sublease. In addition, Landlord shall receive fifty percent (50%), in the event
of an assignment, of any profit derived by Tenant from such assignment less any
commissions or marketing expense paid by Tenant for such assignment.

            (b) A change in the control of Tenant shall constitute an assignment
requiring Landlord's consent. The transfer, on a cumulative basis, of 25% or
more of the voting or management control of Tenant shall constitute a change in
control for this purpose.

            (c) Notwithstanding the foregoing or anything to the contrary
contained in the Lease, without Landlord's consent, at any time, Tenant may
sublease or assign all or any portion of the Premises to an affiliate
("Affiliate") that either is controlled by, directly controls, or is under
common control with, Tenant.

      12.2 RENT ADJUSTMENT. If, as of the effective date of any permitted
assignment or subletting, the then remaining term of this Lease is less than 3
years, Landlord may, as a condition to its consent; (a) require that the amount
of the Rent payable under this Lease be adjusted to what is then the market
value for property similar to the Premises as then constituted, as determined by
Landlord; or (b) terminate the Lease as of the date of assignment or subletting,
subject to the performance by Tenant of those covenants which under the terms
hereof survive termination.

13. Default; Remedies.

      13.1 DEFAULT. The occurrence of any one of the following events shall
constitute an event of default on the part of Tenant ("Default"):

            (a) The abandonment of the Premises by Tenant;

            (b) Failure to pay any installment of Base Rent, Additional Rent, or
any other monies due and payable hereunder, said failure continuing for a period
of 3 days after the same is due;

            (c) A general assignment by Tenant or any guarantor for the benefit
of creditors;

            (d) The filing of a voluntary petition of bankruptcy by Tenant or
any guarantor; the filing of a voluntary petition for an arrangement; the filing
of a petition, voluntary or involuntary, for reorganization; or the filing of an
involuntary petition by Tenant's creditors or guarantors;

            (e) Receivership, attachment, or other judicial seizure of the
Premises or all or substantially all of Tenant's assets on the Premises;

            (f) Failure of Tenant to maintain insurance as required by Paragraph
8.2;

            (g) Any breach by Tenant of its covenants under Paragraph 6.2;

            (h) Failure in the performance of any of Tenant's covenants,
agreements, or obligations hereunder (except those failures specified as events
of Default in other Paragraphs of this Paragraph 13.1 which shall be governed by
such other Paragraphs), which failure continues for 10 days after written notice
thereof from Landlord to Tenant; provided that, if Tenant has exercised
reasonable diligence to cure such failure and such failure cannot be cured
within such 10-day period despite reasonable diligence, Tenant shall not be in
default under this subparagraph unless Tenant fails thereafter diligently and
continuously to prosecute the cure to completion;

            (i) Any transfer of a substantial portion of the assets of Tenant,
or any incurrence of a material obligation by Tenant, unless such transfer or
obligation is undertaken or incurred in the ordinary course of Tenant's
business, or in good faith for equivalent consideration, or with Landlord's
consent; and

                                     - 11 -

<PAGE>

            (j) The default of any guarantors of Tenant's obligations hereunder
under any guaranty of this Lease, or the attempted repudiation or revocation of
any such guaranty.

      13.2 REMEDIES. In the event of any Default by Tenant, Landlord shall have
any or all of the following remedies:

            (a) TERMINATION. In the event of any Default by Tenant, then in
addition to any other remedies available to Landlord at law or in equity and
under this Lease, Landlord shall have the immediate option to terminate this
Lease and all rights of Tenant hereunder by giving written notice of such
intention to terminate. In the event that Landlord shall elect to so terminate
this Lease then Landlord may recover from Tenant:

                  (1) the worth at the time of award of any unpaid Rent and any
other sums due and payable which have been earned at the time of such
termination; plus

                  (2) the worth at the time of award of the amount by which the
unpaid Rent and any other sums due and payable which would have been earned
after termination until the time of award exceeds the amount of such rental
loss Tenant proves could have been reasonably avoided; plus

                  (3) the worth at the time of award of the amount by which the
unpaid Rent and any other sums due and payable for the balance of the term of
this Lease after the time of award exceeds the amount of such rental loss that
Tenant proves could be reasonably avoided; plus

                  (4) any other amount necessary to compensate Landlord for all
the detriment proximately caused by Tenant's failure to perform its obligations
under this Lease or which in the ordinary course would be likely to result
therefrom, including, without limitation, any costs or expenses incurred by
Landlord (i) in retaking possession of the Premises; (ii) in maintaining,
repairing, preserving, restoring, replacing, cleaning, the Premises or any
portion thereof, including such acts for relating to a new lessee or lessees;
(iii) for leasing commissions; or (iv) for any other costs necessary or
appropriate to relet the Premises; plus

                  (5) such reasonable attorneys' fees incurred by Landlord as a
result of a Default, and costs in the event suit is filed by Landlord to enforce
such remedy; and plus

                  (6) at Landlord's election, such other amounts in addition to
or in lieu of the foregoing as may be permitted from time to time by applicable
law. As used in subparagraphs (1) and (2) above, the "worth at the time of
award" is computed by allowing interest at an annual rate equal to twelve
percent (12%) per annum or the maximum rate permitted by law, whichever is less.
As used in subparagraph (3) above, the "worth at the time of award" is computed
by discounting such amount at the discount rate of the Federal Reserve Bank of
San Francisco at the time of award, plus one percent (1%). Tenant waives
redemption or relief from forfeiture under California Code of Civil Procedure
Sections 1174 and 1179, or under any other present or future law, in the event
Tenant is evicted or Landlord takes possession of the Premises by reason of any
Default of Tenant hereunder.

            (b) CONTINUATION OF LEASE. In the event of any Default by Tenant,
then in addition to any other remedies available to Landlord at law or in equity
and under this Lease, Landlord shall have the remedy described in California
Civil Code Section 1951.4 (Landlord may continue this Lease in effect after
Tenant's Default and abandonment and recover Rent as it becomes due, provided
tenant has the right to sublet or assign, subject only to reasonable
limitations).

            (c) RE-ENTRY. In the event of any Default by Tenant, Landlord shall
also have the right, with or without terminating this Lease, in compliance with
applicable law, to re-enter the Premises and remove all persons and property
from the Premises; such property may be removed and stored in a public warehouse
or elsewhere at the cost of and for the account of Tenant.

            (d) RELETTING. In the event of the abandonment of the Premises by
Tenant or in the event that Landlord shall elect to re-enter or shall take
possession of the Premises pursuant to legal proceeding or pursuant to any
notice provided by law, then if Landlord does not elect to terminate this Lease
as provided in Paragraph a, Landlord may from time to time, without terminating
this Lease, relet the Premises or any part thereof for such term or terms and at
such rental or rentals and upon such other terms and conditions as Landlord in
its sole discretion may deem advisable with the right to make alterations and
repairs to the Premises. In the event that Landlord shall elect to so relet,
then rentals received by Landlord from such reletting shall be applied in the
following order: (1) to reasonable attorneys' fees incurred by Landlord as a
result of a Default and costs in the event suit is filed by Landlord to enforce
such remedies; (2) to the payment of any indebtedness other than Rent due
hereunder from Tenant to Landlord; (3) to the payment of any costs of such
reletting; (4) to the payment of the costs of any alterations and repairs to the
Premises; (5) to the payment of Rent due and unpaid hereunder; and (6) the
residue, if any, shall be held by Landlord and applied in payment of future Rent
and other sums payable by Tenant hereunder as the same may become due and
payable hereunder. Should that portion of such rentals received from such
reletting during any month, which is applied to the payment of Rent hereunder,
be less than the Rent payable during the month by Tenant hereunder, then Tenant
shall pay such deficiency to Landlord. Such deficiency shall be calculated and
paid monthly. Tenant shall also pay to Landlord, as soon as ascertained, any
costs and expenses incurred by Landlord in such reletting or in making such
alterations and repairs not covered by the rentals received from such reletting.

                                     - 12 -

<PAGE>

            (e) TERMINATION. No re-entry or taking of possession of the Premises
by Landlord pursuant to this Addendum shall be construed as an election to
terminate this Lease unless a written notice of such intention is given to
Tenant or unless the termination thereof is decreed by a court of competent
jurisdiction. Notwithstanding any reletting without termination by Landlord
because of any Default by Tenant, Landlord may at any time after such reletting
elect to terminate this Lease for any such Default.

            (f) CUMULATIVE REMEDIES. The remedies herein provided are not
exclusive and Landlord shall have any and all other remedies provided herein or
by law or in equity.

            (g) NO SURRENDER. No act or conduct of Landlord, whether consisting
of the acceptance of the keys to the Premises, or otherwise, shall be deemed to
be or constitute an acceptance of the surrender of the Premises by Tenant prior
to the expiration of the Term, and such acceptance by Landlord of surrender by
Tenant shall only flow from and must be evidenced by a written acknowledgment of
acceptance of surrender signed by Landlord. The surrender of this Lease by
Tenant, voluntarily or otherwise, shall not work a merger unless Landlord elects
in writing that such merger take place, but shall operate as an assignment to
Landlord of any and all existing subleases, or Landlord may, at its option,
elect in writing to treat such surrender as a merger terminating Tenant's estate
under this Lease, and thereupon Landlord may terminate any or all such subleases
by notifying the sublessee of its election so to do within five (5) days after
such surrender.

            (h) NOTICE PROVISIONS. Tenant agrees that any notice given by
Landlord pursuant to Paragraph 13.1 of the Lease shall satisfy the requirements
for notice under California Code of Civil Procedure Section 1161, and Landlord
shall not be required to give any additional notice in order to be entitled to
commence an unlawful detainer proceeding.

      13.3 LATE CHARGES. Tenant hereby acknowledges that late payment by Tenant
to Landlord of Rent and other sums due hereunder will cause Landlord to incur
costs not contemplated by this Lease, the exact amount of which will be
extremely difficult to ascertain. Such costs include, but are not limited to,
processing and accounting charges. Accordingly, if any installment of Rent or
other sum due from Tenant shall not be received by Landlord or Landlord's
designee within 10 days after such amount shall be due, then, without any
requirement for notice to Tenant, Tenant shall pay to Landlord a late charge
equal to 5% of such overdue amount. The parties hereby agree that such late
charge represents a fair and reasonable estimate of the costs Landlord will
incur by reason of late payment by Tenant. Acceptance of such late charge by
Landlord shall in no event constitute a waiver of Tenant's Default with respect
to such overdue amount, nor prevent Landlord from exercising any of the other
rights and remedies granted hereunder.

14. Condemnation. If the Premises or any portion thereof are taken under the
power of eminent domain or sold under the threat of exercise of said power (all
of which are herein called "condemnation"), this Lease shall terminate as to the
part so taken as of the date the condemning authority takes title or possession,
whichever first occurs. If more than 10% of the floor area of the Premises, or
more than 25% of the portion of the Common Areas designated for Tenant's
parking, is taken by condemnation, Tenant may, at Tenant's option, to be
exercised in writing within 10 days after Landlord shall have given Tenant
written notice of such taking (or in the absence of such notice, within 10 days
after the condemning authority shall have taken possession), terminate this
Lease as of the date the condemning authority takes such possession. If Tenant
does not terminate this Lease in accordance with the foregoing, this Lease shall
remain in full force and effect as to the portion of the Premises remaining,
except that the Base Rent shall be reduced in the same proportion as the
rentable floor area of the Premises taken bears to the total rentable floor area
of the Premises. No reduction of Base Rent shall occur if the condemnation does
not apply to any portion of the Premises. Any award for the taking of all or any
part of the Premises under the power of eminent domain or any payment made under
threat of the exercise of such power shall be the property of Landlord;
provided, however, that Tenant shall be entitled to any compensation, separately
awarded to Tenant, for Tenant's relocation expenses and/or loss of Tenant's
trade fixtures. In the event that this Lease is not terminated by reason of such
condemnation, Landlord shall to the extent of its net severance damages in the
condemnation matter, repair any damage to the Premises caused by such
condemnation authority. Tenant shall be responsible for the payment of any
amount in excess of such net severance damages required to complete such repair.

15. Estoppel Certificate and Financial Statements.

      15.1 ESTOPPEL CERTIFICATE. Each party (herein referred to as "Responding
Party") shall within 15 calendar days after written notice from the other Party
(the "Requesting Party") execute, acknowledge, and deliver to the Requesting
Party, to the extent it can truthfully do so, an estoppel certificate in the
form attached hereto as Exhibit C, plus such additional information,
confirmation, and statements as be reasonably requested by the Requesting
Party.

                                     - 13 -

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      15.2 FINANCIAL STATEMENT. If Landlord desires to finance, refinance, or
sell the Building, Industrial Center, or any part thereof, Tenant and all
Guarantors shall deliver to any potential lender or purchaser designated by
Landlord such financial statements of Tenant and such Guarantors as may be
reasonably required by such lender or purchaser, including but not limited to
Tenant's financial statements for the past 3 years. All such financial
statements shall be received by Landlord and such lender or purchaser in
confidence and shall be used only for the purposes herein set forth.

16. Additional Covenants and Provisions.

      16.1 SEVERABILITY. The invalidity of any provision of this Lease, as
determined by a court of competent jurisdiction, shall not affect the validity
of any other provision hereof.

      16.2 INTEREST ON PAST-DUE OBLIGATIONS. Any monetary payment due Landlord
hereunder not received by Landlord within 10 days following the date on which it
was due shall bear interest from the date due at 12% per annum, but not
exceeding the maximum rate allowed by law in addition to the late charge
provided for in Paragraph 13.3.

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

      16.4 LANDLORD LIABILITY. Tenant, its successors, and assigns shall not
assert nor seek to enforce any claim for breach of this Lease against any of
Landlord's assets other than Landlord's interest in the Industrial Center.
Tenant agrees to look solely to such interest for the satisfaction of any
liability or claim against Landlord under this Lease. In no event whatsoever
shall Landlord (which term shall include, without limitation, any general or
limited partner, trustees, beneficiaries, officers, directors, or stockholders
of Landlord) ever be personally liable for any such liability.

      16.5 NO PRIOR OR OTHER AGREEMENTS. This Lease contains all agreements
between the Parties with respect to any matter mentioned herein, and supersedes
all prior or contemporaneous oral or written agreements or understandings.

      16.6 NOTICE REQUIREMENTS. All notices required or permitted by this Lease
shall be in writing and may be delivered in person (by hand, messenger, or
courier service) or may be sent by regular, certified, or registered mail or
U.S. Postal Service Express Mail, with postage prepaid, or by facsimile
transmission during normal business hours, and shall be deemed sufficiently
given if served in a manner specified in this Paragraph 16.6. The addresses
noted adjacent to a Party's signature on this Lease shall be that Party's
address for delivery or mailing of notice purposes. Either Party may by written
notice to the other specify a different address for notice purposes, except that
upon Tenant's taking possessing of the Premises, the Premises shall constitute
Tenant's address for the purpose of mailing or delivering notices to Tenant. A
copy of all notices required or permitted to be given to Landlord hereunder
shall be concurrently transmitted to such party or parties at such addresses as
Landlord may from time to time hereafter designate by written notice to Tenant.

      16.7 DATE OF NOTICE. Any notice sent by registered or certified mail,
return receipt requested, shall be deemed given on the date of delivery shown on
the receipt card, or if no delivery date is shown, the postmark thereon. If sent
by regular mail, the notice shall be deemed given 48 hours after the same is
addressed as required herein and mailed with postage prepaid. Notices delivered
by United States Express Mail or an overnight courier that guarantees next day
delivery shall be deemed given 24 hours after delivery of the same to the United
States Postal Service or courier. If any notice is transmitted by facsimile
transmission or similar means, the same shall be deemed served or delivered upon
telephone or facsimile confirmation of receipt of the transmission thereof,
provided a copy is also delivered via hand or overnight delivery or certified
mail. If notice is received on a Saturday, Sunday, or legal holiday, it shall be
deemed received on the next business day.

      16.8 WAIVERS. No waiver by Landlord of a Default by Tenant shall be deemed
a waiver of any other term, covenant, or condition hereof, or of any subsequent
Default by Tenant of the same or any other term, covenant, or condition hereof.

      16.9 HOLDOVER. Tenant has no right to retain possession of the Premises or
any part thereof beyond the expiration or earlier termination of this Lease. If
Tenant holds over with the consent of Landlord: (a) the Base Rent payable shall
be increased to 175% of the Base Rent applicable during the month immediately
preceding such expiration or earlier termination; (b) Tenant's right to
possession shall terminate on 30 days notice from Landlord; and (c) all other
terms and conditions of this Lease shall continue to apply. Nothing contained
herein shall be construed as a consent by Landlord to any holding over by
Tenant. Tenant shall indemnify, defend, and hold Landlord harmless from and
against any and all claims, demands, actions, losses, damages, obligations,
costs, and expenses, including, without limitation, attorneys' fees

                                     - 14 -

<PAGE>

incurred or suffered by Landlord by reason of Tenant's failure to surrender the
Premises on the expiration or earlier termination of this Lease in accordance
with the provisions of this Lease.

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

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

      16.12 LANDLORD. The covenants and obligations contained in this Lease on
the part of Landlord are binding on Landlord, its successors, and assigns only
during their respective period of ownership of an interest in the Building. In
the event of any transfer or transfers of such title to the Building, Landlord
(and, in the case of any subsequent transfers or conveyances, the then grantor)
shall be concurrently freed and relieved from and after the date of such
transfer or conveyance, without any further instrument or agreement, of all
liability with respect to the performance of any covenants or obligations on the
part of Landlord contained in this Lease thereafter to be performed.

      16.13 ATTORNEYS' FEES AND OTHER COSTS. If any Party brings an action or
proceeding to enforce the terms hereof or declare rights hereunder, the
Prevailing Party (as hereafter defined) in any such proceeding shall be entitled
to reasonable attorneys' fees. The term "Prevailing Party" shall include,
without limitation, a Party who substantially obtains or defeats the relief
sought. Landlord shall be entitled to attorneys' fees, costs, and expenses
incurred in the preparation and service of notices of Default and consultations
in connection therewith, whether or not a legal action is subsequently commenced
in connection with such Default or resulting breach. Tenant shall reimburse
Landlord on demand for all reasonable legal, engineering, and other professional
services expenses incurred by Landlord in connection with all requests by Tenant
for consent or approval hereunder.

      16.14 LANDLORD'S ACCESS; SHOWING PREMISES; REPAIRS. Landlord and
Landlord's agents shall have the right to enter the Premises at any time, in the
case of an emergency, and otherwise at reasonable times upon reasonable notice
for the purpose of showing the same to prospective purchasers, lenders, or
tenants, and making such alterations, repairs, improvements, or additions to the
Premises or to the Building, as Landlord may reasonably deem necessary. Landlord
may at any time place on or about the Premises or Building any ordinary "For
Sale" signs, and Landlord may at any time during the last 180 days of the term
hereof place on or about the Premises any ordinary "For Lease" signs. All such
activities of Landlord shall be without abatement of rent or liability to
Tenant.

      16.15 SIGNS. Tenant shall not place any signs at or upon the exterior of
the Premises or the Building, except that Tenant may, with Landlord's prior
written consent, install (but not on the roof) such signs as are reasonably
required to advertise Tenant's own business so long as such signs are in a
location designated by Landlord and comply with sign ordinances and the signage
criteria established for the Industrial Center by Landlord.

      16.16 TERMINATION; MERGER. Unless specifically stated otherwise in writing
by Landlord, the voluntary or other surrender of this Lease by Tenant, the
mutual termination or cancellation hereof, or a termination hereof by Landlord
for Default by Tenant, shall automatically terminate any sublease or lesser
estate in the Premises; provided, however, Landlord shall, in the event of any
such surrender, termination, or cancellation, have the option to continue any
one or all of any existing subtenancies. Landlord's failure within 10 days
following any such event to make a written election to the contrary by written
notice to the holder of any such lesser interest shall constitute Landlord's
election to have such event constitute the termination of such interest.

      16.17 QUIET POSSESSION. Upon payment by Tenant of the Base Rent and
Additional Rent for the Premises and the performance of all of the covenants,
conditions, and provisions on Tenant's part to be observed and performed under
this Lease, Tenant shall have quiet possession of the Premises for the entire
term hereof, subject to all of the provisions of this Lease.

      16.18 SUBORDINATION: ATTORNMENT; NON-DISTURBANCE.

            (a) SUBORDINATION. This Lease shall be subject and subordinate to
any ground lease, mortgage, deed of trust, or other hypothecation or mortgage
(collectively, "Mortgage") now or hereafter placed by Landlord upon the real
property of which the Premises are a part, to any and all advances made on the
security thereof, and to all renewals, modifications, consolidations,
replacements, and extensions thereof. Tenant agrees that any person holding any
Mortgage shall have no duty, liability, or obligation to perform any of the
obligations of Landlord under this Lease. In the event of Landlord's default
with respect to any such obligation, Tenant will give any Lender, whose name and
address have previously been

                                     - 15 -

<PAGE>

furnished in writing to Tenant, notice of a default by Landlord. Tenant may not
exercise any remedies for default by Landlord unless and until Landlord and the
Lender shall have received written notice of such default and a reasonable time
(not less than 90 days) shall thereafter have elapsed without the default having
been cured. If any Lender shall elect to have this Lease superior to the lien of
its Mortgage and shall give written notice thereof to Tenant, this Lease shall
be deemed prior to such Mortgage. The provisions of a Mortgage relating to the
disposition of condemnation and insurance proceeds shall prevail over any
contrary provisions contained in this Lease.

            (b) ATTORNMENT. Subject to the nondisturbance provisions of
subparagraph (c) of this Paragraph 16.18, Tenant agrees to attorn to a Lender or
any other party who acquires ownership of the Premises by reason of a
foreclosure of a Mortgage. In the event of such foreclosure, such new owner
shall not: (i) be liable for any act or omission of any prior landlord or with
respect to events occurring prior to acquisition of ownership, (ii) be subject
to any offsets or defenses which Tenant might have against any prior Landlord,
or (iii) be liable for security deposits or be bound by prepayment of more than
one month's rent.

            (c) NON-DISTURBANCE. With respect to a Mortgage entered into by
Landlord after the execution of this Lease, Tenant's subordination of this Lease
shall be subject to receiving assurance (a "nondisturbance agreement") from the
Mortgage holder that Tenant's possession and this Lease will not be disturbed so
long as Tenant is not in default and attorns to the record owner of the
Premises.

            (d) SELF-EXECUTING. The agreements contained in this Paragraph 16.18
shall be effective without the execution of any further documents; provided,
however, that upon written request from Landlord or a Lender in connection with
a sale, financing, or refinancing of Premises, Tenant and Landlord shall execute
such further writings as may be reasonably required to separately document any
such subordination or nonsubordination, attornment, and/or nondisturbance
agreement, as is provided for herein. Landlord is hereby irrevocably vested with
full power to subordinate this Lease to a Mortgage.

      16.19 RULES AND REGULATIONS. Tenant agrees that it will abide by, and to
cause its employees, suppliers, shippers, customers, tenants, contractors, and
invitees to abide by, all reasonable rules and regulations ("Rules and
Regulations"), applied in a non-discriminatory manner which Landlord may make
from time to time for the management, safety, care, and cleanliness of the
Common Areas, the parking and unloading of vehicles, and the preservation of
good order, as well as for the convenience of other occupants or tenants of the
Building and the Industrial Center and their invitees. Landlord shall not be
responsible to Tenant for the noncompliance with said Rules and Regulations by
other tenants of the Industrial Center.

      Notwithstanding the foregoing or anything to the contrary contained in
this Lease, Landlord represents and warrants that there is no Common Area to
which this Lease is subject.

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

      16.21 RESERVATIONS. Landlord reserves the right to grant such easements
that Landlord deems necessary and to cause the recordation of parcel maps, so
long as such easements and maps do not unreasonably interfere with the use of
the Premises by Tenant. Tenant agrees to sign any documents reasonably requested
by Landlord to effectuate any such easements or maps.

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

      16.23 OFFER. Preparation of this Lease by either Landlord or Tenant or
Landlord's agent or Tenant's agent and submission of same to Tenant or Landlord
shall not be deemed an offer to lease. This Lease is not intended to be binding
until executed and delivered by all Parties hereto.

      16.24 AMENDMENTS. This Lease may be modified only in writing, signed by
the parties in interest at the time of the modification.

      16.25 MULTIPLE PARTIES. Except as otherwise expressly provided herein, if
more than one person or entity is named herein as Tenant, the obligations of
such persons shall be the joint and several responsibility of all persons or
entities named herein as such Tenant.

      16.26 AUTHORITY. Each person signing on behalf of Landlord or Tenant
warrants and represents that she or he is authorized to execute and deliver this
Lease and to make it a binding obligation of Landlord or Tenant.

                                     - 16 -

<PAGE>

      The parties hereto have executed this Lease at the place and on the dates
specified below their respective signatures.

Landlord:                               Tenant:
AMB Property, L.P.                      FMI Int'l (West) LLC,
                                        a Delaware limited liability company

a Delaware limited partnership
By: AMB Property Corporation,           By: /s/ [ILLEGIBLE]
    a Maryland corporation                  ------------------------------------

                                        Its: VICE PRESIDENT

                                                          AND

   By: ______________________________   By: /s/ [ILLEGIBLE]
   Its: _____________________________       ------------------------------------
                                        Its: CHIEF FINANCIAL OFFICER

Telephone: (415) 394-9000               Telephone: (732) 750-9000

Facsimile: (415) 394-9001               Facsimile: (732) 750-4338

Executed at: San Francisco, CA          Executed at: CARTERET, NJ

on: _________________________________   on: DECEMBER 16, 1999

ADDRESS                                 ADDRESS

505 Montgomery Street                       800 FEDERAL BLVD.
San Francisco, CA 94111                     CARTERET, NJ 07008

                                      - 17 -

<PAGE>

                                    GLOSSARY

The following terms in the Lease are defined in the paragraphs opposite the
terms.

                            TERM DEFINED IN PARAGRAPH

Additional Rent                                           4.1
Applicable Requirements                                   6.3
Assign                                                    12.1
Base Rent                                                 1.4
Basic Provisions                                          1
Building                                                  1.2
Building Operating Expenses                               4.2(b)
Code                                                      12.1(a)
Commencement Date                                         1.3
Commencement Date Certificate                             3.3
Common Areas                                              2.2
Common Area Operating Expenses                            4.2(b)
Condemnation                                              14
Default                                                   13.1
Expiration Date                                           1.3
HVAC                                                      4.2(a)(x)
Hazardous Substance                                       6.2
Indemnity                                                 8.5
Industrial Center                                         1.2
Landlord                                                  1.1
Landlord Entities                                         6.2(c)
Lease                                                     1.1
Lenders                                                   6.4
Mortgage                                                  16.18
Operating Expenses                                        4.2
Party/Parties                                             1.1
Permitted Use                                             l.8
Premises                                                  1.2
Prevailing Party                                          16.13
Real Property Taxes                                       10.2
Rent                                                      4.1
Reportable Use                                            6.2
Requesting Party                                          15
Responding Party                                          15
Rules and Regulations                                     2.4, 16.19
Security Deposit                                          1.7,5
Taxes                                                     10.2
Tenant                                                    1.1
Tenant Acts                                               9.2
Tenant's Entity                                           6.2(c)
Tenant's Share                                            1.5
Term                                                      1.3
Use                                                       6.1

                                     - 18 -

<PAGE>

                            FIRST AMENDMENT TO LEASE

      This First Amendment to Lease ("Amendment") is made and entered into as of
December 30, 1999, by and between AMB PROPERTY L.P., a Delaware limited
partnership ("Landlord") and FMI Int'l (West) LLC, a Delaware limited liability
company ("Tenant").

                                    RECITALS

      Tenant and Landlord are parties to that certain AMB Property Corporation
Industrial Lease dated December 6, 1999 ("Lease"). Pursuant to the terms and
conditions of the Lease, Tenant has leased the premises commonly known as 22351
Wilmington Avenue, Carson, California 90745 ("Premises").

                                   AGREEMENTS

      NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants, conditions and agreements contained herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Landlord and Tenant hereby agree as follows:

      1. COMMENCEMENT DATE. Section 1.3 of the Lease is hereby deleted and
replaced by the following: "1.3 TERM. Seven (7) years and one (1) month ("Term")
commencing the later of June 15, 2000 or substantial completion of tenant
improvements by Landlord ("Commencement Date") and ending seven (7) years and
one (1) month after the Commencement Date ("Expiration Date")."

      2. INITIAL MONTH'S BASE RENT. Section 1.4 of the Lease is hereby deleted
and replaced by the following: "1.4 BASE RENT. $141,750.00 per month base rent
is payable on May 15, 2000 for the second month of the lease term, the first
month of the lease term being free of base rent."

      3. CITY OF CARSON REQUIREMENTS. Landlord and Tenant acknowledge and agree
that Landlord has been informed by the City of Carson Planning Department and
has so informed Tenant that modifications to the Premises may be required ("City
Requirements") including, but not limited to the expansion of the landscape
buffer along Wilmington Avenue ("Landscape Buffer") further into the Premises by
approximately six (6) feet and the placement of a wall or other screening device
(collectively "Wall") along Wilmington Avenue and the Landscape Buffer. Landlord
and Tenant agree that Landlord will use its reasonable best efforts to minimize
the effect of the City Requirements, but that Landlord has no control over the
City Requirements. Landlord shall, at its sole cost and expense, construct the
Wall, modify or expand the Landscape Buffer, and re-stripe the parking area of
the Premises as necessary to comply with the City Requirements. In no event
shall the City Requirements otherwise modify the obligations of the parties
under the Lease.

      4. NO OTHER AMENDMENTS. Except as otherwise provided in this Amendment,
all other terms and conditions of the Lease shall remain the same and the Lease
shall remain in full force and effect.

      IN WITNESS WHEREOF, the parties hereto have signed this First Amendment as
of the date first written above.

LANDLORD                                  TENANT

AMB PROPERTY, L.P.                        FMI INT'L (WEST) LLC
a Delaware limited partnership            a Delaware limited liability company

By: AMB PROPERTY CORPORATION
    a Maryland corporation                By: /s/ Gregory DeSaye
                                              ------------------------------
    Its General Partner                       Gregory DeSaye, Vice President

By: /s/ Martin J. Coyne                   By: /s/ Joseph Cangelosi
    -------------------------------           -------------------------------
    Martin J. Coyne, Vice President           Joseph Cangelosi,
                                              Chief Financial Officer

<PAGE>

                           SECOND AMENDMENT TO LEASE

      This Second Amendment to Lease ("Amendment") is made and entered into as
of May 16, 2000, by and between AMB Property L.P., a Delaware limited
partnership ("Landlord") and FMI Int'l (West) LLC, a Delaware limited liability
company ("Tenant").

                                    RECITALS

      Tenant and Landlord are parties to that certain AMB Property Corporation
Industrial Lease dated December 6, 1999 ("Lease"), which was amended by a
written First Amendment to Lease dated December 30, 1999 ("First Amendment").
The Lease as modified by the First Amendment is sometimes referred to as the
"Amended Lease". Pursuant to the terms and conditions of the Amended Lease,
Tenant has leased the premises commonly known as 22351 Wilmington Avenue,
Carson, California 90745 ("Premises").

                                   AGREEMENTS

      NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants, conditions and agreements contained herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Landlord and Tenant hereby agree as follows:

      1. COMMENCEMENT DATE. Section 1.3 of the Amended Lease is hereby deleted
and replaced by the following: "1.3 TERM. Seven (7) years and one (1) month
("Term") commencing on June 1, 2000 ("Commencement Date") and ending on June 30,
2007 ("Expiration Date")."

      2. INITIAL MONTH'S BASE RENT. Section 1.4 of the Amended Lease is hereby
deleted and replaced by the following: "1.4 BASE RENT $141,750.00 per month base
rent is payable on June 1, 2000 for the period of July 1 through July 31, 2000,
the first month of the lease term being free of base rent."

      3. TENANT IMPROVEMENT ADDENDUM. The following items are hereby added to
"Landlord's Work" as set forth in the Tenant Improvement Addendum to the Amended
Lease:

            a.    create dock-high loading in front of all truck doors in Area C
                  as depicted on Exhibit "A" to this Second Amendment.

            b.    enlarge two (2) existing truck doors in Area B as depicted on
                  Exhibit "A" to this Second Amendment.

            c.    add two (2) new truck doors, each 18 feet by 10 feet, in Area
                  B as depicted on Exhibit "A" to this Second Amendment.

      4. COMMENCEMENT DATE MEMORANDUM. Upon completion by Landlord of
"Landlord's Work" as set forth in the Tenant Improvement Addendum to the Amended
Lease, Landlord and Tenant shall execute a new Commencement Date Memorandum in
form and substance identical to that attached hereto as Exhibit "B" to this
Second Amendment.

      5. NO OTHER AMENDMENT. Except as otherwise provided in this Second
Amendment, all other terms and conditions of the Amended Lease shall remain the
same and the Amended Lease shall remain in full force and effect.

      IN WITNESS WHEREOF, the parties hereto have signed this Second Amendment
as of the date first written above.

Landlord:                               Tenant:

AMB PROPERTY, L.P.                      FMI INT'L (WEST) LLC
a Delaware limited partnership          a Delaware limited liability company

By: AMB PROPERTY CORPORATION
    a Maryland corporation              By: /s/ Gregory DeSaye
                                            ------------------------------
    Its General Partner                     Gregory DeSaye, Vice President

By: /s/ Martin J. Coyne                 By: /s/ Joseph Cangelosi
    -------------------------------         ------------------------------
    Martin J. Coyne, Vice President         Joseph Cangelosi,
                                            Chief Financial Officer

<PAGE>

                          COMMENCEMENT DATE MEMORANDUM

      LANDLORD:                    AMB PROPERTY, L.P.

      TENANT:                      FMI Int'l (West) LLC

      LEASE DATE:                  December 6, 1999

      PREMISES:                    22351 Wilmington Ave.
                                   Carson, CA

      Tenant hereby accepts the Premises as being in the condition required
under the Lease.

      The Commencement Date of the Lease is June 1, 2000.

      The Expiration Date of the Lease is June 30, 2007.

Landlord:                                   Tenant:

AMB PROPERTY, L.P.                          FMI INT'L (WEST) LLC
a Delaware limited partnership              a Delaware limited liability company

By: AMB PROPERTY CORPORATION
    a Maryland corporation                  By:
    Its General Partner                        ------------------------------
                                               Gregory DeSaye, Vice President

By:                                         By:
   -------------------------------             ------------------------
   Martin J. Coyne, Vice President             Joseph Cangelosi,
                                               Chief Financial Officer

<PAGE>

                                GUARANTY OF LEASE

      WHEREAS, AMB Property, L.P., a Delaware limited partnership ("Landlord"),
and FMI Int'l (West) LLC, a Delaware limited liability company ("Tenant"), are
about to execute a lease ("Lease") dated December 6, 1999, for the premises
commonly known as 22351 Wilmington Avenue, Carson, California 90745;

      WHEREAS, Fashion Marketing, Inc., a New Jersey corporation and Fashion
Marketing LLC, a Delaware limited liability company (collectively "Guarantor")
are affiliates of Tenant; and

      WHEREAS, Landlord would not execute the Lease if Guarantor did not execute
and deliver to Landlord this Guaranty of Lease.

NOW THEREFORE, in consideration of the execution of the foregoing Lease by
Landlord and as a material inducement to Landlord to execute the Lease:

1. Guarantor hereby jointly, severally, unconditionally, and irrevocably
guarantees the prompt payment by Tenant of all rents and all other sums payable
by Tenant under the Lease and the faithful and prompt performance by Tenant of
each and every one of the terms, conditions, and covenants of the Lease to be
kept and performed by Tenant.

2. The terms of the Lease may, without the consent of or notice to Guarantor, be
modified by Landlord and Tenant or by a course of conduct, and this Guaranty
shall guarantee the performance of said Lease as so modified. The Lease may be
assigned by Landlord or any assignee of Landlord without consent or notice to
Guarantor.

3. This Guaranty shall not be released, modified, or affected by the failure or
delay on the part of Landlord to enforce any of the rights or remedies of the
Landlord under the Lease, whether pursuant to the terms thereof or at law or in
equity.

4. No notice of default need be given to Guarantor. The guaranty of the
undersigned is a continuing guaranty under which Landlord may proceed
immediately against Tenant and/or against Guarantor following any breach or
default by Tenant or for the enforcement of any rights which Landlord may have
against Tenant under the terms of the Lease or at law or in equity.

5. Landlord shall have the right to proceed against Guarantor hereunder
following any breach or default by Tenant without first proceeding against
Tenant and without previous notice to or demand upon either Tenant or Guarantor.

6. Guarantor hereby waives (a) notice of acceptance of this Guaranty, (b) demand
of payment, presentation, and protest, (c) all right to assert or plead any
statute of limitations relating to this Guaranty or the Lease, (d) any right to
require the Landlord to proceed against the Tenant or any other Guarantor or any
other person or entity liable to Landlord, (e) any right to require Landlord to
apply to any default any security deposit or other security it may hold under
the Lease, (f) any right to require Landlord to proceed under any other remedy
Landlord may have before proceeding against Guarantor, and (g) any right of
subrogation.

7. Guarantor does hereby subrogate all existing or future indebtedness of Tenant
to Guarantor to the obligations owed to Landlord under the Lease and this
Guaranty.

8. If a Guarantor is married, such Guarantor expressly agrees that recourse may
be had against his or her separate property for all of the obligations
hereunder.

9. The obligations of Tenant under the Lease to execute and deliver estoppel
certificates and financial statements shall be deemed to also require the
Guarantor hereunder to do and provide the same.

                                        1

<PAGE>

10. The term "Landlord" refers to and means the Landlord named in the Lease and
also Landlord's successors and assigns. So long as Landlord's interest in the
Lease, the leased premises, or the rents, issues, and profits therefrom, are
subject to any mortgage or deed of trust or assignment for security, no
acquisition by Guarantor of the Landlord's interest shall affect the continuing
obligation of Guarantor under this Guaranty which shall nevertheless continue in
full force and effect for the benefit of the mortgagee, beneficiary, trustee, or
assignee under such mortgage, deed of trust, or assignment, and their successors
and assigns.

11. The term "Tenant" refers to and means the Tenant named in the Lease and also
Tenant's successors and assigns.

12. In the event any action is brought by said Landlord against Guarantor
hereunder to enforce the obligation of Guarantor hereunder, the unsuccessful
party in such action shall pay to the prevailing party therein all court costs,
including costs of investigation, discovery and appeal (if any) and a reasonable
attorney's fee which shall be fixed by the court.

Fashion Marketing LLC,                           Fashion Marketing Inc.,
a Delaware limited liability company             a New Jersey corporation

By: /s/ [ILLEGIBLE]                             By: /s/ [ILLEGIBLE]
   ---------------------                           ---------------------
Its: VICE PRESIDENT                             Its: VICE PRESIDENT
     -------------------                             -------------------
     "Guarantor"                                     "Guarantor"

By: /s/ [ILLEGIBLE]                             By: /s/ [ILLEGIBLE]
   -------------------------                       -------------------------
Its: CHIEF FINANCIAL OFFICER                    Its: CHIEF FINANCIAL OFFICER
     -----------------------                         -----------------------
     "GUARANTOR"                                     "GUARANTOR"

                                        2

<PAGE>

                               AMB PROPERTY, L.P.,
                         A DELAWARE LIMITED PARTNERSHIP
                                INDUSTRIAL LEASE

                           Tenant Improvement Addendum

This Tenant Improvement Addendum is a part of the Lease dated December 6, 1999,
by and between AMB PROPERTY, L.P. ("Landlord") and, FMI Int'l (West) LLC
("Tenant") for the premises commonly known as 22351 Wilmington Ave., Carson,
California.

Should Tenant desire to construct any improvements ("Alterations") to the
Premises, prior to commencement of construction, Tenant shall obtain and deliver
to Landlord any building permit required by applicable law and a copy of the
executed construction contract(s). Tenant shall reimburse Landlord within 10
days after the rendition of a bill for all of Landlord's actual out-of-pocket
costs incurred in connection with the Alterations, including, without
limitation, all management, engineering, outside consulting, and construction
fees incurred by or on behalf of Landlord for the review and approval of
Tenant's plans and specifications and for the monitoring of construction of the
Alterations. Tenant shall require its contractor to maintain insurance in the
amounts and in the forms reasonably required by Landlord. The Alterations shall
be constructed by licensed contractors approved by Landlord and in accordance
with rules, such as hours of construction, imposed by Landlord. The Alterations
shall be completed lien free, in accordance with the plans and specifications
which have been previously approved by Landlord, in a good, workmanlike, and
prompt manner, with new materials of first-class quality and comply with all
applicable local, state, and federal regulations. The competed Alterations shall
be the property of Landlord and shall, subject to the provisions of the next
sentence, be surrendered with the Premises upon the expiration or sooner
termination of this Lease. However, prior to the expiration or sooner
termination of this Lease, Tenant shall, at Tenant's sole cost and expense,
remove the Alterations which are designated by Landlord to be removed and
following such removal, repair and restore the Premises in a good and
workmanlike manner to their original condition, reasonable wear and tear
excepted.

Prior to commencing construction of the Improvements, Tenant shall obtain from
its contractors and deliver to Landlord a waiver and release of any and all
claims against Landlord and liens against the Premises to which such contractor
might at any time be entitled and to provide such payment and performance bonds
as Landlord may require. The delivery of the waiver and release of claims and
liens and such bonds shall be a condition precedent to Tenant's ability to begin
its construction work at the Premises.

Tenant shall pay when due all claims for labor or materials furnished or alleged
to have been furnished to or for Tenant at or for use on the Premises. Tenant
shall give Landlord not less than 10 days notice prior to the commencement of
any work in, on, or about the Premises, and Landlord shall have the right to
post notices of non-responsibility in or on the Premises as provided by law.

Tenant agrees to indemnify, protect, and defend Landlord and hold Landlord
harmless against any loss, liability, or damage resulting from construction of
the Alterations.

Notwithstanding the foregoing or anything to the contrary contained in the
Lease, Landlord, at its sole cost and expense shall make the following repairs
("Landlord's Work") prior to the Rent Commencement Date:

OFFICE

      1.    Install new carpet, baseboard and v.c.t. tile in the office area.
            Repair or replace, at Landlord's option, all damaged or stained
            ceiling tiles and lenses. Paint office walls.

                                        1

<PAGE>

      2.    Repair or replace, at Landlord's option, all damaged restroom
            fixtures. Install new v.c.t. tile and baseboard in restrooms. Repair
            or replace, at Landlord's option, all stained or damaged lenses in
            restrooms and paint walls

      3.    Install new stairwell at the northeast corner of the Premises.

      4.    Install new glass "storefront" and entry at the northeast corner of
            the Premises.

WAREHOUSE

      1.    Replace all sliding, i.e., garage door type, truck doors with 26
            gauge roll-up doors.

      2.    Remove floor to ceiling wood and drywall demising walls in the
            southern two portions of the warehouse.

      3.    Remove existing strip fluorescent lighting and install new metal
            halide lighting throughout the warehouse, to specifications mutually
            agreed upon by Landlord and Tenant.

      4.    Install new carpet, baseboard and v.c.t. tile in warehouse/shop
            areas. Repair or replace, at Landlord's option, all damaged or
            stained ceiling tiles and lenses. Paint warehouse office walls.

      5.    Repair or replace, at Landlord's option, all damaged warehouse
            restroom fixtures. Install new v.c.t. tile and baseboard. Repair or
            replace, at Landlord's option, all stained or damaged lenses and
            paint walls.

      6.    Replace any damaged/rusted man doors with new steel doors.

      7.    Install, as mandated by the Los Angeles County Fire Department,
            panic hardware and alarms of man doors.

      8.    Remove "drop ceiling," HVAC ducting, electrical and plumbing
            fixtures under the mezzanine. Raise sprinklers and lighting.

      9.    Deliver all dock plates and load levelers in good condition and
            repair.

      10.   Install two double and one single truck doors at openings created by
            the removal of the eastern office pod.

      11.   Clean warehouse floors.

      12.   Paint interior walls and columns.

EXTERIOR

      1.    Paint exterior walls.

YARD

      1.    Install new pedestrian entrance and handicap access ramp at the
            northeast corner of the Premises adjacent to new "storefront."

      2.    Repair, slurry seal, and stripe the truck yard.

      3.    Repair all damaged fencing.

      4.    Install new 8 foot high chain link fence at north end of building
            demising truck and car parking areas.

      5.    Demolish eastern pod of office space.

      6.    Install a concrete apron of similar dimensions to the existing
            apron.

      7.    Install asphalt in area where office pod was removed.

      8.    Stripe for car parking near new office front.

In addition to the foregoing Landlord's Work, Landlord shall provide Tenant with
an allowance of $75,000.00 ("Allowance") to be used by Tenant solely for the
following improvements ("Allowance Improvements"):

      1.    Installation of windows in offices looking out over the warehouse
            area from mezzanine office space.

      2.    Installation of edge of dock plates at truck positions.

      3.    Installation of dock sealers at all loading positions.

Tenant shall deliver to Landlord copies of all paid invoices and bills
evidencing the completion of the Allowance Improvements. The Allowance
Improvements shall be

                                        2

<PAGE>

constructed and be subject to the provisions of this Addendum regarding
Alterations. Any portion of the Allowance which remains after completion of the
Allowance Improvements will be returned by Tenant to Landlord.

FIRE SAFETY SYSTEM

Landlord will deliver the Premises to Tenant with the fire sprinkler system in
good working order. Notwithstanding the foregoing, Tenant shall be responsible
for any upgrades to the fire safety system including, but not limited to, the
fire sprinkler system, required by any governmental or quasi-governmental entity
which is based upon Tenant's use of the Premises.

ADA

Landlord shall be responsible for all costs associated with modifying the
Premises to meet any requirements of the Americans with Disabilities Act as
mandated by the City of Carson. Notwithstanding the foregoing, Tenant shall be
responsible for any modification required by any governmental or
quasi-governmental entity which is based upon Tenant's use of the Premises.

SEISMIC

Landlord shall be responsible for all costs associated with modifying the
Premises to meet any seismic retrofit requirements as mandated by any
governmental entity. Notwithstanding the foregoing, Tenant shall be responsible
for any modification required by any governmental entity which is based upon
Tenant's use of the Premises.

ENVIRONMENTAL

Tenant shall not be responsible for any environmental matters, hazardous
substances or conditions existing at the Premises prior to Tenant's taking
possession of the Premises or caused by Landlord, its agents or employees.
Notwithstanding the foregoing or anything to the contrary contained in the
Lease, Tenant acknowledges and agrees that this Tenant Improvement Addendum
serves as written notice to Tenant that Landlord has disclosed to Tenant the
existence of hazardous substances that have become located on or beneath the
real property of which the Premises are a part, as set forth in Attachment 1 to
this Addendum.

Landlord:                                   Tenant:

AMB Property, L.P.                          FMI Int'l (West) LLC
a Delaware limited partnership              a Delaware limited liability company
By: AMB Property Corporation,
    a Maryland corporation

By: _____________________                   By:  /s/ [ILLEGIBLE]
                                                -------------------------
Its: ____________________                   Its: VICE PRESIDENT

                                                        AND

                                            By: /s/ [ILLEGIBLE]
                                                -------------------------
                                            It's: CHIEF FINANCIAL OFFICER

                                        3

<PAGE>

                               AMB PROPERTY, L.P.,
                         A DELAWARE LIMITED PARTNERSHIP
                                INDUSTRIAL LEASE

                            RENT ADJUSTMENT ADDENDUM

This Rent Adjustment Addendum is a part of the Lease dated December 6, 1999, by
and between AMB PROPERTY, L.P. ("Landlord") and FMI Int'l (West) LLC ("Tenant")
for the premises commonly known as 22351 Wilmington Ave, Carson, California.

Monthly Base Rent for the each of the periods designated in this Addendum
("Adjustment Periods") shall be the amount calculated in accordance with the
alternative selected below ("Rent Adjustment Alternative"), but in no event
shall the monthly Base Rent for an Adjustment Period be less than the highest
monthly rent payable during the term preceding the Adjustment Period.

1. ADJUSTMENT PERIODS;

      The rent shall be adjusted on the 31st and 61st months after the
Commencement Date.

2. RENT ADJUSTMENT ALTERNATIVES

            [X]         Cost of living adjustment ("CPI Adjustment")
            Monthly Base Rent shall be calculated using the following CPI index
            ("Index"):
                  [ ]   Urban Wage Earners and Clerical Workers
                  [X]   All Urban Consumers
                  [ ]   ____________________________________________________
            The Comparison Month is:
                  [X]   the first month of the term of this Lease; or
                  [ ]   ____________________________________________________

3. CALCULATION OF RENT ADJUSTMENT

      a. COST OF LIVING ADJUSTMENT. The CPI Adjustment shall be based upon the
Consumer Price Index of the Bureau of Labor Statistics of the United States
Department of Labor (1982 - 1984 - 100) for Los Angeles-Riverside-Orange County
using the Index selected in Paragraph 2. If the selected Rent Adjustment
Alternative is the CPI Adjustment, the monthly Base Rent payable during each
Adjustment Period shall be the product obtained by multiplying the highest
monthly Base Rent payable by Tenant during the term immediately preceding by a
fraction the numerator of which shall be the Index for the month that is three
(3) months prior to the first month of the Adjustment Period and the denominator
of which shall be the Index for the month that is three (3) months prior to the
Comparison Month selected above. Notwithstanding the foregoing or anything to
the contrary contained in the Lease, the increase shall not be less than three
(3%) percent nor more than six (6%) percent per annum of the Base Rent for the
immediately preceding month. In no event shall the Base Rent be reduced from the
Base Rent payable prior to the Adjustment Period.

4. NOTICE: Notice of Rent Adjustments shall be made as specified in paragraph
16.6 of the Lease.

Landlord:                                   Tenant:

AMB Property, L.P.                          FMI Int'l (West) LLC,
a Delaware limited partnership              a Delaware limited liability company
By: AMB Property Corporation,
    a Maryland corporation

    By: _______________________________     By: /s/ [ILLEGIBLE]
                                                -------------------------
    Its: ______________________________     Its: VICE PRESIDENT

                                                      AND

                                            By: /s/ [ILLEGIBLE]
                                                -------------------------
                                            It's: CHIEF FINANCIAL OFFICER

                                        I

<PAGE>

                               AMB PROPERTY, L.P.,
                         A DELAWARE LIMITED PARTNERSHIP
                                INDUSTRIAL LEASE

                                Option to Extend

This Option to Extend is a part of the Lease dated December 6, 1999, by and
between AMB PROPERTY, L.P. ("Landlord") and FMI Int'l (West) LLC, ("Tenant") for
the premises commonly known as 22351 Wilmington Ave., Carson, California.

1. OPTION TO EXTEND. Landlord hereby grants to Tenant the option to extend the
term of this Lease for an additional seven (7) years ("Option Period")
commencing when the initial term expires.

2. EXERCISE DATES: For purposes of Paragraph 5 of this Addendum,

      a.    the Earliest Exercise Date is 12 months prior to the date that the
            Option Period would commence, and

      b.    the Last Exercise Date is 9 months prior to the date that the Option
            Period would commence.

3. MONTHLY BASE RENT. The monthly Base Rent for each month of an Option Period
shall be the amount calculated by determining the fair market rental value of
the Premises as set forth below, but in no event shall the monthly Base Rent for
an Option Period be less than the highest monthly Base Rent payable during the
term immediately preceding the Option Period.

      MARKET RENT ADJUSTMENT. Six months prior to the commencement of the Option
Period, the Parties shall negotiate in good faith to determine the Base Rent for
the Option Period. If agreement cannot be reached within thirty days, then
Landlord and Tenant shall each, no later than 90 days prior to the commencement
of the Option Period, make a reasonable determination of the fair market rental
for the Premises for the Option Period and submit such determination, in
writing, to arbitration in accordance with the following provisions:

            (1) No later than 90 days prior to the commencement of the Option
period, Landlord and Tenant shall each select an industrial leasing broker to
act as an arbitrator. The two arbitrators so appointed shall, no later than 75
days prior to the commencement of the Option Period, select a third mutually
acceptable industrial leasing broker to act as a third arbitrator.

            (2) The three arbitrators, acting by a majority, shall no later than
75 days prior to the commencement of the Option Period, determine the actual
fair market rental for the Premises for the Option Period. The decision of a
majority of the arbitrators shall be binding on the Parties. The fair market
rental determination of Landlord or Tenant which is closest to the fair market
rental as determined by the arbitrators shall be the Base Rent for the Option
Period.

            (3) If either of the Parties fails to appoint an arbitrator within
the period required by this Addendum, the arbitrator timely appointed shall
determine the Base Rent for the Option Period.

            (4) The entire cost of such arbitration shall be paid by the party
whose fair market rental submission is not selected.

4. OTHER AMENDMENTS TO LEASE OPERATIVE DURING EACH OPTION PERIOD:

      a. ADJUSTMENT OF BASE RENT DURING OPTION PERIOD. Monthly Base Rent shall
be adjusted during the Option Period in the same manner as during the initial
term, except that the adjustments during the Option Period shall occur on the
31st and 61st months after the beginning of the Option Period, but in no event
shall the monthly Base Rent for an Adjustment Period be less than the highest
monthly rent payable during the term preceding the Adjustment Period.

5. CONDITIONS TO EXERCISE OF OPTION. Tenant's right to extend is conditioned
upon and subject to each of the following:

      a. In order to exercise an option to extend, Tenant must give written
notice of such election to Landlord and Landlord must receive the same by the
Last Exercise Date

                                        1

<PAGE>

but not prior to the Earliest Exercise Date. If proper notification of the
exercise of an option is not given and/or received, such option shall
automatically expire. Options (If there are more than one) may only be exercised
consecutively. Failure to exercise an option terminates that option and all
subsequent options. Tenant acknowledges that because of the importance to
Landlord of knowing no later than the Last Exercise Date whether or not Tenant
will exercise the option, the failure of Tenant to notify Landlord by the Last
Exercise Date will conclusively be presumed an election by Tenant not to
exercise the option.

      b. Tenant shall have no right to exercise an option (i) if Tenant is in
Default or (ii) in the event that Landlord has given to Tenant three or more
notices of separate Defaults during the 12-month period immediately preceding
the exercise of the option, whether or not the Defaults are cured. The period of
time within which an option may be exercised shall not be extended or enlarged
by reason of Tenant's inability to exercise an option because of the provisions
of this paragraph.

      c. All of the terms and conditions of this Lease, except where
specifically modified by this Addendum, shall apply.

      d. The options are personal to the Tenant, cannot be assigned or exercised
by anyone other than the Tenant, and only while the Tenant is in full
possession of the Premises and without the intention of thereafter assigning or
subletting.

Landlord:                                   Tenant:

AMB Property, L.P.                          FMI Int'l (West) LLC,
a Delaware limited partnership              a Delaware limited liability company
By: AMB Property Corporation,
    a Maryland corporation

  By: ___________________________________   By: /s/ [ILLEGIBLE]
                                                ------------------------
  Its: __________________________________   Its: VICE PRESIDENT

                                                      AND

                                            By: /s/ [ILLEGIBLE]
                                                ------------------------
                                            Its: CHIEF FINANCIAL OFFICER

                                        2

<PAGE>

                               AMB PROPERTY, L.P.,
                         A DELAWARE LIMITED PARTNERSHIP
                                INDUSTRIAL LEASE

               EARLY POSSESSION AND INDUCEMENT RECAPTURE ADDENDUM

This Early Possession and Inducement Recapture Addendum is a part of the Lease
dated December 6, 1999 by and between AMB PROPERTY, L.P. ("Landlord") and FMI
Int'l (West) LLC ("Tenant") for the premises commonly known as 22351 Wilmington
Ave., Carson, California.

1. EARLY POSSESSION.

Tenant may occupy the office portion of the Premises for the purpose of allowing
its telephone contractors access for installation of equipment after full
execution of the Lease and delivery of same by Landlord to Tenant and on and
after the date that Landlord gives Tenant notice of substantial completion of
Landlord's Work, pursuant to the Tenant Improvement Addendum hereto, Tenant may
occupy the warehouse and yard portions of the Premises ("Early Possession
Date"), even though the Early Possession Date is prior to the Commencement Date
of the Lease ("Early Possession"). The obligation to pay Base Rent and Operating
Expenses, Real Property Taxes, Landlord Insurance, and HVAC maintenance shall be
shared for the Early Possession Period. All other terms of this Lease, however,
including, but not limited to, the obligations to pay Tenant's Share of
Operating Expenses and to carry the insurance required by Paragraph 8, shall
be in effect during the Early Possession period. Such Early Possession shall not
change the Expiration Date of the Original Term.

2. INDUCEMENT RECAPTURE IN EVENT OF BREACH. Any agreement by Landlord for
possession of the Premises without the payment or reduced payment of rent or
other charges or for the giving or paying by Landlord to or for Tenant of any
cash or other bonus, inducement, or consideration for Tenant's entering into
this Lease, all of which concessions are hereinafter referred to as "Inducement
Provisions," are conditioned upon Tenant's full and faithful performance of all
of the terms, covenants, and conditions of this Lease to be performed or
observed by Tenant during the terms of this Lease. Upon the occurrence of a
Default by Tenant, any rent, other charge, bonus, inducement, or consideration
abated, given, or paid by Landlord under such an Inducement Provision shall be
immediately due and payable by Tenant to Landlord and recoverable by Landlord as
additional rent due under this Lease, notwithstanding and subsequent cure by
Tenant.

Landlord:                                   Tenant:

AMB Property, L.P.                          FMI Int'l (West) LLC
a Delaware limited partnership              a Delaware limited liability company
By: AMB Property Corporation
    a Maryland corporation

By:                                         By:  /s/ [ILLEGIBLE]
     _________________________                   -------------------------------
Its:                                        Its: VICE PRESIDENT
     _________________________

                                                               AND

                                            By: /s/ [ILLEGIBLE]
                                                --------------------------------
                                            Its: CHIEF FINANCIAL OFFICER

<PAGE>

                               AMB PROPERTY, L.P.,
                         A DELAWARE LIMITED PARTNERSHIP
                                INDUSTRIAL LEASE

                             RENT ABATEMENT ADDENDUM

This Rent Abatement Addendum is a part of the Lease dated December 6, 1999 by
and between AMB PROPERTY, L.P. ("Landlord") and FMI Int'l (West) LLC,
("Tenant") for the premises commonly known as 22351 Wilmington Ave., Carson,
California.

1. RENT ABATEMENT. The Base Rent only shall be abated ("Abated Rent") for the
first month of the term of the Lease.

2. RECAPTURE OF ABATED RENT. Any agreement by Landlord for Abated Rent is
conditioned upon Tenant's full and faithful performance of all of the terms,
covenants, and conditions of this Lease to be performed or observed by Tenant
during the term of this Lease. Upon the occurrence of a Default by Tenant, in
addition to any Inducement Recapture set forth elsewhere in this Lease, all
Abated Rent be immediately due and payable by Tenant to Landlord and recoverable
by Landlord as additional rent due under this Lease, notwithstanding any
subsequent cure by Tenant.

Landlord:                                 Tenant:

AMB Property, L.P.                        FMI Int'l (West) LLC,
a Delaware limited partnership            a Delaware limited liability company
By: AMB Property Corporation,
    a Maryland corporation

By:  ________________________________     By:  /s/ [ILLEGIBLE]
                                               --------------------------------
Its: ________________________________     Its: VICE PRESIDENT

                                                           AND

                                          By:  /s/ [ILLEGIBLE]
                                               --------------------------------
                                          Its: CHIEF FINANCIAL OFFICER

<PAGE>

                               AMB PROPERTY, L.P.,
                         A DELAWARE LIMITED PARTNERSHIP
                                INDUSTRIAL LEASE

                             RENT ABATEMENT ADDENDUM

This Rent Abatement Addendum is a part of the Lease dated December 6, 1999 by
and between AMB PROPERTY, L.P. ("Landlord") and FMI Int'l (West) LLC. ("Tenant")
for the premises commonly known as 22351 Wilmington Ave., Carson, California.

1. RENT ABATEMENT. The Base Rent only shall be abated ("Abated Rent") for the
first month of the term of the Lease.

2. RECAPTURE OF ABATED RENT. Any agreement by Landlord for Abated Rent is
conditioned upon Tenant's full and faithful performance of all of the terms,
covenants, and conditions of this Lease to be performed or observed by Tenant
during the term of this Lease. Upon the occurrence of a Default by Tenant, in
addition to any Inducement Recapture Set forth elsewhere in this Lease, all
Abated Rent be immediately due and payable by Tenant to Landlord and recoverable
by Landlord as additional rent due under this Lease, notwithstanding any
subsequent cure by Tenant.

Landlord:                               Tenant:

AMB Property, L.P.                      FMI Int'l (West) LLC,
a Delaware limited partnership          a Delaware limited liability company
By: AMB Property Corporation,
    a Maryland corporation

  By: ________________________           By: /s/ [ILLEGIBLE]
                                             --------------------------
  Its: _______________________           Its: VICE PRESIDENT

                                                 AND

                                        By: /s/ [ILLEGIBLE]
                                            ---------------------------
                                        Its: CHIEF FINANCIAL OFFICER

<PAGE>

    [LOGO]                     STANDARD SUBLEASE
              (SHORT-FORM TO BE USED WITH POST 1995 AIREA LEASES)
(NOTE: DO NOT USE IF LESS THAN ENTIRE PREMISES ARE BEING SUBLET. FOR SITUATIONS
 WHERE THE PREMISES ARE TO BE OCCUPIED BY MORE THAN ONE TENANT OR SUBTENANT USE
                   THE "STANDARD SUBLEASE-MULTI-TENANT" FORM)

1     BASIC PROVISIONS ("BASIC PROVISIONS").

      1.1 PARTIES: This Sublease ("Sublease"), dated for reference purposes only
March 8, 2005, is made by and between FMI Int'l (West) LLC. a Delaware limited
liability company ______________________________________________________
________________________________________________________________________________
______________________________________________________________ ("Sublessor") and
American Port Services, Inc. a Georgia Corporation ___________
________________________________________________________________________________
_________________________________________________________________ ("Sublessee"),
(collectively the "PARTIES" or individually a "PARTY").

      1.2 PREMISES: That certain real property, including all improvements
therein, and commonly known by the street address of 22351 Wilmington Avenue,
Carson
located in the County of Los Angeles, State of California
and generally described as (describes briefly the nature of the property) an
approximate 315,000 square feet industrial building located an approximately
706,913 square feet of land ("PREMISES").

      1.3 TERM: two (2) years and three (3) months commencing April 1, 2005
("COMMENCEMENT DATE") and ending June 30, 2007 ("EXPIRATION DATE").

      1.5 BASE RENT: $ 148,050.00 per month ("BASE RENT"), payable on the first
day of each month commencing June 1, 2005.

      1.6 BASE RENT AND OTHER MONIES PAID UPON EXECUTION:

            (a) BASE RENT: $ 148,050.00 for the period June 1-30, 2005.

            (b) SECURITY DEPOSIT: $150,000.00 ("SECURITY DEPOSIT").

            (c) ASSOCIATION FEES: $ N/A for the period __________________

            (d) OTHER OPERATING EXPENSES: $33,100.00 for the month of June 2005.
See attached breakdown of the approximate 2005 Operating Expenses. The
Operating Expenses may increase in 2006 and 2007. Sublessee shall pay the full
amount, the Operating Expenses as determined by Master Lessor.

            (e) TOTAL DUE UPON EXECUTION OF THIS LEASE: $331,150.00.

      1.7 AGREED USE: general office, warehouse, distribution and storage of
ocean containers, storage containers, truck drivers' personal vehicles and
tractors outside of the Building provided such uses are in compliance with all
laws and for no other use.

      1.8 REAL ESTATE BROKERS:

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

[X]   Los Angeles Real Estate Management, Inc. represents Sublessor exclusively
      ("SUBLESSOR'S BROKER").

[X]   CB Richard Ellis represents Sublessee exclusively ("SUBLESSEE'S BROKER"),
      or

[ ]   ___________________ represents both Sublessor and Sublessee ("DUAL
      AGENCY").

            (b) PAYMENT TO BROKERS: Upon execution and delivery of this Sublease
by both Parties, Sublessor shall pay to the Brokers the brokerage fee agreed to
in a separate written agreement.

      1.9 GUARANTOR. The obligations of the Sublessee under this Sublease shall
be guaranteed by ______________________________________________________________
_________________________________________________________________ ("GUARANTOR").

      1.10 ATTACHMENTS. Attached hereto are the following, all of which
constitute a part of this Sublease:

[ ] an Addendum consisting of Paragraphs ______________ through
__________________.

[X] a plot plan depicting the Premises.

[ ] a Work Letter.

                                   PAGE 1 OF 6

                                                                     [ILLEGIBLE]
--------                                                                --------
--------                                                                --------
INITIALS                                                                INITIALS

(C) 1997 - AIR COMMERCIAL REAL ESTATE ASSOCIATION               FORM SBS-2-4/01E

<PAGE>

[X] a copy of the Master Lease;

[ ] other (specify): ___________________________________________________________
________________________________________________________________________________
_______________________________________________________________________________.

2. PREMISES.

      2.1 LETTING. Sublessor hereby subleases to Sublessee, and Sublessee hereby
subleases from Sublessor, the Premises for the term, at the rental, and upon
all of the terms, covenants and conditions set forth in this Sublease. Unless
otherwise provided herein, any statement of size set forth in this Sublease, or
that may have been used in calculating Rent, is an approximation which the
Parties agree is reasonable and any payments based thereon are not subject to
revision whether or not the actual size is more or less. NOTE: SUBLESSEE IS
ADVISED TO VERIFY THE ACTUAL SIZE PRIOR TO EXECUTING THIS SUBLEASE.

      2.2 CONDITION. Sublessor shall deliver the Premises to Sublessee broom
clean and free of debris on the Commencement Date or the Early Possession Date,
whichever first occurs ("START DATE"), and warrants that the existing
electrical, plumbing, fire sprinkler, lighting, heating, ventilating and air
conditioning systems ("HVAC"), and any items which the Sublessor is obligated to
construct pursuant to the Work Letter attached hereto, if any, other than those
constructed by Sublessee, shall be in good operating condition on said date. If
a non-compliance with such warranty exists as of the Start Date, or if one of
such systems or elements should malfunction or fail within the appropriate
warranty period, Sublessor shall, as Sublessor's sole obligation with respect to
such matter, except as otherwise provided in this Sublease, promptly after
receipt of written notice from Sublessee setting forth with specificity the
nature and extent of such non-compliance, malfunction or failure, rectify same
at Sublessor's expense. The warranty periods shall be as follows: (i) 6 months
as to the HVAC systems, and (ii) 30 days as to the remaining systems and other
elements. If Sublessee does not give Sublessor the required notice within the
appropriate warranty period, correction of any such non-compliance, malfunction
or failure shall be the obligation of Sublessee at Sublessee's sole cost and
expense.

      2.3 COMPLIANCE. Sublessor warrants that any improvements, alterations or
utility installations made or installed by or on behalf of Sublessor to or on
the Premises comply with all applicable covenants or restrictions of record and
applicable building codes, regulations and ordinances ("APPLICABLE
REQUIREMENTS") in effect on the date that they were made or installed. Sublessor
makes no warranty as to the use to which Sublessee will put the Premises or to
modifications which may be required by the Americans with Disabilities Act or
any similar laws as a result of Sublessee's use. NOTE: SUBLESSEE IS RESPONSIBLE
FOR DETERMINING WHETHER OR NOT THE ZONING AND OTHER APPLICABLE REQUIREMENTS ARE
APPROPRIATE FOR SUBLESSEE'S INTENDED USE, AND ACKNOWLEDGES THAT PAST USES OF THE
PREMISES MAY NO LONGER BE ALLOWED. If the Premises do not comply with said
warranty, Sublessor shall, except as otherwise provided, promptly after receipt
of written notice from Sublessee setting forth with specificity the nature and
extent of such non-compliance, rectify the same.

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

      2.5 AMERICANS WITH DISABILITIES ACT. In the event that as a result of
Sublessee's use, or intended use, of the Premises the Americans with
Disabilities Act or any similar law requires modifications or the construction
or installation of improvements in or to the Premises, Building, Project and/or
Common Areas, the Parties agree that such modifications, construction or
improvements shall be made at [ ] Sublessor's expense [X] Sublessee's expense.

3. POSSESSION.

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

      3.2 DELAY IN COMMENCEMENT. Sublessor agrees to use its best commercially
reasonable efforts to deliver possession of the Premises by the Commencement
Date. If, despite said efforts, Sublessor is unable to deliver possession as
agreed, the rights and obligations or Sublessor and Sublessee shall be as set
forth in Paragraph 3.3 or the Master Lease (as modified by Paragraph 7.3 or this
Sublease).

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

4. RENT AND OTHER CHARGES.

      4.1 RENT DEFINED. All monetary obligations of Sublessee to Sublessor under
the terms of this Sublease (except for this security deposit are deemed to be
rent ("Rent"). Rent shall be payable in lawful money of the United States to
Sublessor at the

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address stated herein or to such other persons or at such other places as
Sublessor may designate in writing.

      4.2 UTILITIES. Sublessee shall pay for all water, gas, heat, light, power,
telephone, trash disposal and other utilities and services supplied to the
Premises, together with any taxes thereon.

5. SECURITY DEPOSIT. The rights and obligations of Sublessor and Sublessee as to
said Security Deposit shall be as set forth in Paragraph 5 of the Master Lease
(as modified by Paragraph 7.3 of this Sublease).

6. AGREED USE. The Premises shall be used and occupied only for general office,
warehouse, distribution and storage of ocean containers, storage containers,
truck drivers' personal vehicles and tractors outside or the building, provided
such uses are in compliance with all laws and for no other purpose.

7. MASTER LEASE.

      7.1 Sublessor is the lessee of the Premises by virtue of a lease,
hereinafter the "MASTER LEASE", wherein AME PROPERTY, L.P., A DELAWARE LIMITED
PARTNERSHIP is the lessor, hereinafter the "MASTER LESSOR".

      7.2 This Sublease is and shall be at all times subject and subordinate to
the Master Lease.

      7.3 The terms, conditions and respective obligations of Sublessor and
Sublessee to each other under this Sublease shall be the terms and conditions of
the Master Lease except for those provisions of the Master Lease which are
directly contradicted by this Sublease in which event the terms of this Sublease
document shall control over the Master Lease. Therefore, for the purposes of
this Sublease, wherever in the Master Lease the word "Lessor" is used it shall
be deemed to mean the Sublessor herein and wherever in the Master Lease the word
"Lessee" is used it shall be deemed to mean the Sublessee herein.

      7.4 During the term of this Sublease and for all periods subsequent for
obligations which have arisen prior to the termination of this Sublease,
Sublessee does hereby expressly assume and agree to perform and comply with, for
the benefit of Sublessor and Master Lessor, each and every obligation of
Sublessor under the Master Lease except for the following paragraphs which are
excluded therefrom: [ILLEGIBLE]. Tenant Improvement Addendum (excluding the Fire
Safety System, ADA, Seismic and Environmental paragraphs which shall remain a
part of this Sublease) Guaranty of Sublease, Rent Adjustment Addendum
[ILLEGIBLE].

      7.5 The obligations that Sublessee has assumed under paragraph 7.4 hereof
are hereinafter referred to as the "SUBLESSEE'S ASSUMED OBLIGATIONS". The
obligations that sublessee has not assumed under paragraph 7.4 hereof are
hereinafter referred to as the "SUBLESSOR'S REMAINING OBLIGATIONS".

      7.6 Sublessee shall hold Sublessor free and harmless from all liability,
judgments, costs, damages, claims or demands, including reasonable attorneys
fees, arising out of Sublessee's failure to comply with or perform Sublessee's
Assumed Obligations.

      7.7 Sublessor agrees to maintain the Master Lease during the entire term
of this Sublease, subject, however, to any earlier termination of the Master
Lease without the fault of the Sublessor, and to comply with or perform
Sublessor's Remaining Obligations and to hold Sublessee free and harmless from
all liability, judgments, costs, damages, claims or demands arising out of
Sublessor's failure to comply with or perform Sublessor's Remaining Obligations.

      7.8 Sublessor represents to Sublessee that the Master Lease is in full
force and effect and that no default exists on the part of any Party to the
Master Lease.

8. ASSIGNMENT OF SUBLEASE AND DEFAULT.

      8.1 Sublessor hereby assigns and transfers to Master Lessor Sublessor's
interest in this Sublease, subject however to the provisions of Paragraph 8.2
hereof.

      8.2 Master Lessor, by executing this document, agrees that until a Default
shall occur in the performance of Sublessor's Obligations under the Master
Lease, that Sublessor may receive, collect and enjoy the Rent accruing under
this Sublease. However, if Sublessor shall Default in the performance of its
obligations to Master Lessor then Master Lessor may, at its option, receive and
collect, directly from Sublessee, all Rent owing and to be owed under this
Sublease. In the event, however, that the amount collected by Master Lessor
exceeds Sublessor's obligations any such excess shall be refunded to Sublessor.
Master Lessor shall not, by reason of this assignment of the Sublease nor by
reason of the collection of the Rent from the Sublessee, be deemed liable to
Sublessee for any failure of the Sublessor to perform and comply with
Sublessor's Remaining Obligations.

      8.3 Sublessor hereby irrevocably authorizes and directs Sublessee upon
receipt of any written notice from the Master Lessor stating that a Default
exists in the performance of Sublessor's obligations under the Master Lease, to
pay to Master Lessor the Rent due and to become due under the Sublease.
Sublessor agrees that Sublessee shall have the right to rely upon any such
statement and request from Master Lessor, and that Sublessee shall pay such Rent
to Master Lessor without any obligation or right to inquire as to whether such
Default exists and notwithstanding any notice from or claim from Sublessor to
the contrary and Sublessor shall have no right or claim against Sublessee for
any such Rent so paid by Sublessee.

      8.4 No changes or modifications shall be made to this Sublease without the
consent of Master Lessor.

9. CONSENT OF MASTER LESSOR.

      9.1 In the event that the Master Lease requires that Sublessor obtain the
consent of Master Lessor to any subletting by Sublessor then, this Sublease
shall not be effective unless, within 10 days of the date hereof, Master Lessor
signs this Sublease thereby giving its consent to this Subletting.

      9.2 In the event that the obligations of the Sublessor under the Master
Lease have been guaranteed by third parties then neither this Sublease, nor the
Master Lessor's consent, shall be effective unless, within 10 days of the date
hereof, said guarantors sign this Sublease thereby giving their consent to this
Sublease.

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      9.3 In the event that Master Lessor does give such consent then:

            (a) Such consent shall not release Sublessor of its obligations or
alter the primary liability of Sublessor to pay the Rent and perform and comply
with all of the obligations of Sublessor to be performed under the Master Lease.

            (b) The acceptance of Rent by Master Lessor from Sublessee or any
one else liable under the Master Lease shall not be deemed a waiver by Master
Lessor of any provisions of the Master Lease.

            (c) The consent to this Sublease shall not constitute a consent to
any subsequent subletting or assignment.

            (d) In the event of any Default of Sublessor under the Master Lease,
Master Lessor may proceed directly against Sublessor, any guarantors or any one
else liable under the Master Lease or this Sublease without first exhausting
Master Lessor's remedies against any other person or entity liable thereon to
Master Lessor.

            (e) Master Lessor may consent to subsequent sublettings and
assignments of the Master Lease or this Sublease or any amendments or
modifications thereto without notifying Sublessor or any one else liable under
the Master Lease and without obtaining their consent and such action shall not
relieve such persons from liability.

            (f) In the event that Sublessor shall Default in its obligations
under the Master Lease, then Master Lessor, at its option and without being
obligated to do so, may require Sublessee to attorn to Master Lessor in which
event Master Lessor shall undertake the obligations of Sublessor under this
Sublease from the time of the exercise of said option to termination of this
Sublease but Master Lessor shall not be liable for any prepaid Rent nor any
Security Deposit paid by Sublessee, nor shall Master Lessor be liable for any
other Defaults of the Sublessor under the Sublease.

            (g) Unless directly contradicted by other provisions of this
Sublease, the consent of Master Lessor to this Sublease shall not constitute an
agreement to allow Sublessee to exercise any options which may have been granted
to Sublessor in the Master Lease.

      9.4 The signatures of the Master Lessor and any Guarantors of Sublessor at
the end of this document shall constitute their consent to the terms of this
Sublease.

      9.5 Master Lessor acknowledges that, to the best of Master Lessor's
knowledge, no Default presently exists under the Master Lease of obligations to
be performed by Sublessor and that the Master Lease is in full force and effect.

      9.6 In the event that Sublessor Defaults under its obligations to be
performed under the Master Lease by Sublessor, Master Lessor agrees to deliver
to Sublessee a copy of any such notice of default. Sublessee shall have the
right to cure any Default of Sublessor described in any notice of default within
ten days after service of such notice of default on Sublessee. If such Default
is cured by Sublessee then Sublessee shall have the right of reimbursement and
offset from and against Sublessor.

10. ADDITIONAL BROKERS COMMISSIONS.

      10.1 Sublessor agrees that if Sublessee exercises any option or right of
first refusal as granted by Sublessor herein, or any option or right
substantially similar thereto, either to extend the term of this Sublease, to
renew this Sublease, to purchase the Premises, or to lease or purchase adjacent
property which Sublessor may own or in which Sublessor has an interest, then
Sublessor shall pay to Broker a fee in accordance with the schedule of Broker in
effect at the time of the execution of this Sublease. Notwithstanding the
foregoing, Sublessor's obligation under this Paragraph is limited to a
transaction in which Sublessor is acting as a Sublessor, lessor or seller.

      10.2 Master Lessor agrees that if Sublessee shall exercise any option or
right of first refusal granted to Sublessee by Master Lessor in connection with
this Sublease, or any option or right substantially similar thereto, either to
extend or renew the Master Lease, to purchase the Premises or any part thereof,
or to lease or purchase adjacent property which Master Lessor may own or in
which Master Lessor has an interest, or if Broker is the procuring cause of any
other lease or sale entered into between Sublessee and Master Lessor pertaining
to the Premises, any part thereof, or any adjacent property which Master Lessor
owns or in which it has an interest, then as to any of said transactions, Master
Lessor shall pay to Broker a fee, in cash, in accordance with the schedule of
Broker in effect at the time of the execution of this Sublease.

      10.3 Any fee due from Sublessor or Master Lessor hereunder shall be due
and payable upon the exercise of any option to extend or renew, upon the
execution of any new lease, or, in the event of a purchase, at the close of
escrow.

      10.4 Any transferee of Sublessor's interest in this Sublease, or of Master
Lessor's interest in the Master Lease, by accepting an assignment thereof, shall
be deemed to have assumed the respective obligations of Sublessor or Master
Lessor under this Paragraph 10. Broker shall be deemed to be a third-party
beneficiary of this paragraph 10.

11. REPRESENTATIONS AND INDEMNITIES OF BROKER RELATIONSHIPS. The Parties each
represent and warrant to the other that it has had no dealings with any person,
firm, broker or finder (other than the Brokers, if any) in connection with this
Sublease, and that no one other than said named Brokers is entitled to any
commission or finder's fee in connection herewith. Sublessee and Sublessor do
each hereby agree to indemnify, protect, defend and hold the other harmless from
and against liability for compensation or charges which may be claimed by any
such unnamed broker, finder or other similar party by reason of any dealings or
actions of the indemnifying Party, including any costs, expenses, attorneys'
fees reasonably incurred with respect thereto.

12. ATTORNEY'S FEES. If any Party or Broker brings an action or proceeding
involving the Premises whether founded in tort, contract or equity, or to
declare rights hereunder, the Prevailing Party (as hereafter defined) in any
such proceeding, action, or appeal thereon, shall be entitled to reasonable
attorneys' fees. Such fees may be awarded in the same suit or recovered in a
separate suit, whether or not such action or proceeding is pursued to decision
or judgment. The term, "Prevailing Party" shall include, without limitation, a
Party or Broker who substantially obtains or defeats the relief sought, as the
case may be, whether by compromise, settlement, judgment, or the abandonment by
the other Party or Broker of its claim or defense. The attorneys' fees award
shall not be computed in accordance with any court fee schedule, but shall be
such as to fully reimburse all attorneys' fees reasonably incurred. In addition,
Sublessor shall be entitled to attorneys' fees, costs and expenses incurred in
the preparation and service of notices of Default and consultations in
connection therewith, whether or not a legal action is subsequently commenced in
connection with such Default or

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resulting Breach ($200 is a reasonable minimum per occurrence for such services
and consultation).

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

14. Prior to the Commencement Date of the Sublease, Sublessor and Sublessee
shall conduct a walk through of the Premises Sublessor and Sublessee shall
document the condition of the Premises through video tape, photographs and a
written report. Sublessee shall not be responsible to repair, cure, fix or
otherwise pay for any delayed/deferred maintenance, damage or other condition
that exists at the Premises prior to the Commencement Date and is identified on
the video tape, photographs and written reports or that are identified as set
forth in 2.2 and 2.3 above. Sublessee shall be responsible to maintain the
Premises pursuant to the terms of the Master Lease attached hereto and pay for
the cost to repair, cure and/or fix all damage or other conditions that are
created by Sublessee at the Premises at anytime during the Sublease term.

15. Sublessor, at Sublessor's sole cost and expense, shall deliver the Premises
to Sublessee with the plumbing, sprayers, mechanical, lighting, loading doors,
all electrical, HVAC, electric gate [ILLEGIBLE] pump and all other building
operating systems and components in good working order, condition and state of
repair on the Commencement Date. Other than as previously stated, Sublessee
accepts the Premises in their existing "AS IS" condition. The roof shall be in
water tight condition.

16. Sublessor, at Sublessor's sole cost and expense shall remove the metal
building in south portion of the yard area at any time that is mutually
agreeable to Sublessor and Sublessee. Sublessee shall allow Sublessor access to
the yard area at said agreed upon time to remove said building.

ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AIR COMMERCIAL
REAL ESTATE ASSOCIATION OR BY ANY REAL ESTATE BROKER AS TO THE LEGAL
SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS SUBLEASE OR THE
TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO:

1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS SUBLEASE.

2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE
PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE
PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PROPERTY, THE STRUCTURAL
INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, AND THE SUITABILITY
OF THE PREMISES FOR SUBLESSEE'S INTENDED USE.

WARNING: IF THE SUBJECT PROPERTY IS LOCATED IN A STATE OTHER THAN CALIFORNIA,
CERTAIN PROVISIONS OF THE SUBLEASE MAY NEED TO BE REVISED TO COMPLY WITH LAWS OF
THE STATE IN WHICH THE PROPERTY IS LOCATED

Executed at: ____________________________  Executed at: SAVANNAH, GA.
On: _____________________________________  On: 3/15/05

By Sublessor:                              By Sublessee:
FMI Int'l (West) LLC, a Delaware limited   American Port Services, Inc.,
liability company                          a Georgia corporation

By:                                        By: /s/ [ILLEGIBLE]
    ------------------------------------      ----------------------------------
Name Printed: Neil Devine                  Name Printed: George [ILLEGIBLE]
Title: Chief Financial Officer             Title: President

By:_____________________________________   By:__________________________________
Name Printed: Greg DeSaye                  Name Printed:________________________
Title: Chief Executive Officer             Title:_______________________________
Address: 800 Federal Boulevard             Address: 198 Gulfstream Road
Carteret, New Jersey 07008                 Savannah, GA 31408
Telephone:(732) 750-9000                   Telephone:(912) 966-2198

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Facsimile:(732) 750-4338                 Facsimile:(912) 966-2791
Federal ID No. _________________________ Federal ID No. ________________________

BROKER:                                  BROKER:

Los Angeles Real Estate Management, Inc. CB Richard Ellis
________________________________________ _______________________________________

Attn: Ed Whittemore                      Attn: Jeff Morgan
Title: Executive Vice President          Title: Senior Vice President
Address: 160 E. Selandia Lane            Address: 990 W. 190th Street
Carson, CA 90746                         Torrance, CA 90502
Telephone: (310) 719-1585                Telephone: (310) 616-2300
Facsimile: (310) 719-7272                Facsimile: (310) 616-2310
Federal ID No. _________________________ Federal ID No. ________________________

Consent to the above Sublease is hereby given.

Executed at: ___________________________ Executed at: __________________________
On: ____________________________________ On: ___________________________________

BY MASTER LESSOR:                        BY GUARANTOR(S):
AMB Property, L. P. a Delaware limited   By: ___________________________________
liability partnership                    Name Printed: _________________________
                                         Address: ______________________________
By: AMB Property Corporation, a          _______________________________________
    Maryland Corporation
Name Printed: __________________________
Title: _________________________________ By: ___________________________________
                                         Name Printed: _________________________
                                         Address: ______________________________
By: ____________________________________ _______________________________________
Name Printed: __________________________
Title: _________________________________
Address: Pier 1, Bay 1
         San Francisco, CA 94111
Telephone: (___) _______________________
Facsimile: (___) _______________________
Federal ID No. _________________________

NOTE: These forms are often modified to meet changing requirements of law and
needs of the industry. Always write or call to make sure you are utilizing the
most current form: AIR COMMERCIAL REAL ESTATE ASSOCIATION, 700 So. Flower St.,
Suite 600, Los Angeles, CA 90017.(213)687-8777.

(c)Copyright 1997 By AIR Commercial Real Estate Association. All rights
reserved. No part of these works may be reproduced in any form without
permission in writing.

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