Document:

Exhibit 10.2

                        SCOTTSDALE EXECUTIVE OFFICE PARK
                              OFFICE BUILDING LEASE

     THIS LEASE is made and entered  into as of this 29th day of January,  2004,
by and between GAINEY RANCH FINANCIAL  LIMITED  PARTNERSHIP,  L.L.P., a Delaware
limited  liability  partnership  ("Landlord"),  and AEGIS  ASSESSMENTS,  INC., a
Delaware corporation ("Tenant").

     In consideration of the rents and covenants hereinafter set forth, Landlord
hereby  leases to Tenant and Tenant  hereby rents from  Landlord  the  following
described Premises, upon the following terms and conditions:

1. FUNDAMENTAL LEASE PROVISIONS

   1.1.  Premises:  Suite: D-353 (the "Premises") Floor: Third
                    Project: Scottsdale Executive Office Park
                    Building Address: 7975 N. Hayden Road
                    City Scottsdale County:
                    Maricopa
                    State: Arizona
                    The Premises is  identified on that certain space plan dated
                    January 24, 2004,  prepared by Cox James,  which is attached
                    hereto as Exhibit A and incorporated  herein. The "Building"
                    in which the premises is located,  together  with its Common
                    Areas (as defined in Article 28) and the Parking Areas shown
                    on  Exhibit B attached  hereto,  are  sometimes  hereinafter
                    collectively referred to as the "Project."

   1.2. Floor Area: Rentable Area: approximately 2,647 square feet.

                    Tenant  agrees to accept the  Premises as herein  described,
                    recognizing   that  the  square  feet   calculation   is  an
                    approximation.  The Parties  hereto  agree that the Premises
                    for all  purposes  herein shall be deemed to be as set forth
                    in this Article 1.2.

   1.3.  Term:      Thirty-nine (39) months
                    Commencement Date: March 1, 2004
                    Termination Date: May 30, 2007
                    The term of this Lease shall  commence  on the  Commencement
                    Date and end on the Termination Date (the "Term") unless the
                    same shall be sooner terminated as hereinafter provided.

   1.4.  Option to
         Extend:    One (1) additional three (3) year period. (Article 45)

   1.5. Annual
        Basic Rent: Payable  in  advance,  on  the  first  day  of  each  month,
                    according to the following schedule:

                    Lease               Annual Basic            Monthly
                    Months              Rent                    Payment
                    ---------------------------------------------------
                        1               $0                      $0
                        2 - 6           $59,557.56              $4,963.13
                        7               $0                      $0
                        8 - 12          $59,557.56              $4,963.13
                        13 - 18         $61,357.44              $5,113.12
                        19              $0                      $0
                        20 - 24         $61, 357.44             $5,113.12
                        25 - 39         $63,210.36              $5,267.53
                        (Article 3)

   1.6.  Expenses:  Tenant  shall pay  Tenant's  Pro Rata Share of all  Expenses
                    that exceed  Landlord's  Base Cost together with other items
                    of  Expense as set forth in  Article  4.  Tenant's  Pro Rata
                    Share is  .98%.  The  Base  Cost  shall be equal to all real
                    property taxes and Operating  Expenses for the calendar year
                    2004 ("Base Cost"). (Article 4)

   1.7.  After-Hours
         Charges:   After-Hours  HVAC Charges payable by Tenant shall be subject
                    to change  during the Term of the Lease,  but are  initially
                    set at $6.00 per hour

   1.8.  Prepaid
         Rent:      $5,057.43,  which  amount  includes  applicable  rental  tax
                    thereon at 1.9%, representing the second Lease month's rent.

   1.9.  Security
         Deposit:   $5,365.58,  which  amount  includes  applicable  rental  tax
                    thereon at 1.9%.

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                        SCOTTSDALE EXECUTIVE OFFICE PARK
                              OFFICE BUILDING LEASE

   1.10. Landlord's
         Address For      11811 N. Tatum Blvd., Suite P-118
         Notices:         Phoenix, Arizona 85028

   1.11. Tenant's
         Address For
         Notices:         To the Premises.

   1.12. Broker:          Landlord's Broker: CB Richard Ellis
                          Tenant's Broker: Cal Pacific Properties
                          (Section 8)

   1.13. Guarantee:       None.

   1.14. Parking:         Four (4) covered reserved parking spaces at $35.00 per
                          month each.

   1.15. Permitted
         Uses:            General Office Purposes and no other.

   1.16. Tenant
         Improvement
         Allowance: On or before  March 1,  2004,  Landlord  will  complete  the
                    Tenant  Improvements  per that certain  mutually  acceptable
                    space plan dated January 24, 2004, prepared by Cox James and
                    attached  hereto  as  Exhibit  A,  using  building  standard
                    materials, engineers,  contractors and architects, according
                    to Exhibit C, attached hereto and incorporated herein.

   1.17. Exhibits:  Attached  hereto and  incorporated  herein are the following
                    Exhibits:
                    Exhibit A         Space Plan Dated January 24, 2004
                    Exhibit B         Site Plan of Building, Parking Area and
                                      Common Areas
                    Exhibit C         Tenant Improvements
                    Exhibit D         Intentionally omitted
                    Exhibit E         Shared Telecommunications Agreement
                    Exhibit F         Health Club
                    Exhibit G         Intentionally omitted
                    Exhibit H         Standards For Utilities And Services
                    Exhibit I         Rules and Regulations

     The foregoing  Fundamental  Lease  Provisions  are an integral part of this
Lease,  and each  reference  in the body of the Lease to any of the  Fundamental
Lease  Provisions  shall be construed to incorporate  all of the terms set forth
above with respect to such Provisions. '

2.   POSSESSION

     In the event of the  inability  of  Landlord to deliver  possession  of the
Premises  to Tenant on the  Commencement  Date,  this Lease shall not be void or
voidable,  nor  shall  Landlord  be  liable  to  Tenant  for any loss or  damage
resulting  therefrom,  but in such event the Term shall not commence  until such
time as Landlord  tenders  delivery of possession of the Premises to Tenant with
Landlord's work therein, if any, substantially completed. Should Landlord tender
possession of the Premises to Tenant prior to the  Commencement  Date and Tenant
elects to accept such prior tender,  the Term shall thereupon  commence and such
prior  occupancy  shall be subject to all of the terms of this Lease,  including
the payment of rent and other expenses.

3.   ANNUAL BASIC RENT

     a. Upon  commencement  of the Term,  Tenant  agrees to pay the Annual Basic
Rent to Landlord in equal monthly installments, as set forth in Article 1 above.
In the event the Term  commences  or ends on a day other  than the first or last
day of a  calendar  month  respectively,  then the  Annual  Basic  Rent for such
periods shall be prorated.  In addition to said Annual Basic Rent, Tenant agrees
to pay (i) on a monthly basis all  governmental  taxes or impositions  which are
due and payable by Landlord on account of,  attributed to, or measured by Annual
Basic  Rental or other  additional  charges  payable  by Tenant  except  general
income, transfer, estate and inheritance taxes, and (ii) Tenant's Pro Rata Share
of the Operating Expense Adjustments, as that term is defined below. Said Annual
Basic  Rent,  taxes  and  Operating  Expenses  shall  be  paid  without  demand,
proration, deduction or offset, in lawful money of the United States at the time
of payment,  at the office of Landlord or to such other  person or at such other
place as Landlord may from time to time  designate in writing.  Tenant shall pay
as  additional  rent to Landlord,  upon  demand,  Tenant's Pro Rata Share of any
parking charges,  utilities surcharges,  or any other costs levied,  assessed or
imposed by, or at the direction of, or resulting  from statutes or  regulations,
or  interpretations  thereof,  promulgated  by  any  governmental  authority  in
connection with the use or occupancy of the Project.

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                        SCOTTSDALE EXECUTIVE OFFICE PARK
                              OFFICE BUILDING LEASE

4.   OPERATING EXPENSE ADJUSTMENTS

     (a) Operating Expense Adjustments means the increase in the actual property
taxes and Operating Expenses for the Project over the Base Cost.  Property taxes
shall include all taxes or special  assessments levied on or which become a lien
against the Project.  "Operating  Expenses"  shall be  determined by taking into
account for the Project  all costs,  expenses,  liability  and  obligations  for
ownership,  maintenance and operation of said Project, including but not limited
to (a) normal  management  costs,  including but not limited to management fees,
and reasonable  salaries of a building management and maintenance staff, (b) all
labor costs  involved  in  operation  and  maintenance,  (c) cost of  equipment,
supplies and materials (new and/or replacement), (d) cost of utilities including
but not limited to gas, sewer,  water and  electricity  and refuse,  garbage and
trash removal, collection and disposal, (e) upkeep and maintenance of elevators,
(f) upkeep and  maintenance  of the Parking  Areas,  (g)  plumbing,  electrical,
heating and air  conditioning  costs  including  expenses of operation,  repair,
replacement and maintenance,  (h) landscaping and landscape  maintenance  costs,
(i)  cleaning  and other  care,  including  cleaning  provided  for  tenants and
occupants,  (j)  insurance  costs and premiums and (k) all other costs which can
properly be  considered  expenses of  operating  and  maintaining  the  Project,
including  but not limited to any costs  incurred in complying  with any and all
environmental   remedial  and  other  laws,  ordinances,   rules,   regulations,
requirements,  directions, guidelines and orders now or hereafter in effect from
time to time such as, by way of example only, governmental requirements relative
to installation of energy saving devices,  pollution  controls,  or similar type
items.  With respect to any calendar year during the Term of this Lease in which
the  Project is not  occupied  to the extent of 95% of the  Rentable  Area,  the
Operating Expenses for such period for purposes hereof shall be increased to the
amount  which  would have been  incurred  had the Project  been  occupied to the
extent of 95 o /0 of the Rentable Area thereof.

     (b) At its  election,  Landlord  may by each  December  15 during  the Term
deliver to Tenant a statement  of the  estimated  property  taxes and  Operating
Expenses for the calendar year immediately following the date of such statement.
Landlord's  failure to deliver to Tenant such  statement  by such date,  however
shall not  constitute a bar to  Landlord's  recovery of  Operating  Expenses and
property  taxes.  On execution  of this Lease,  Landlord may also give Tenant an
estimate  of  the  annual  Operating   Expenses  and  property  taxes  from  the
Commencement  Date through  December 31 of the  calendar  year in which the Term
commences.  If the estimated property taxes and Operating Expenses are projected
to exceed the Base Cost,  Tenant shall pay to Landlord  with each payment of the
Annual Basic Rent, as additional rent hereunder,  an amount equal to one-twelfth
(1/12) of the product of the estimated property taxes and Operating Expenses for
such calendar year (less the Base Cost) multiplied by Tenant's pro rata share.

     (c) The Term "property taxes" as used herein includes:  (1) any form of tax
or assessment  (including  any  so-called  "special"  assessment),  license fee,
license tax, business license fee, business license tax,  commercial rental tax,
levy,  charge,  or tax, imposed by any authority having the direct power to tax,
including  any  city,  county,  state,  or  federal  government  or any  school,
agricultural,  lighting,  water,  drainage,  or  other  improvement  or  special
district,  against the  Premises,  the  Building,  or  Project,  or any legal or
equitable  interest of Landlord in any of them; (2) any tax on Landlord's  right
to rent the Premises or against Landlord's business of leasing the Premises; and
(3) any  assessment,  tax, fee,  levy, or charge in  substitution,  partially or
totally,  of or in  addition  to any  assessment,  tax,  fee,  levy,  or  charge
previously  included within the definition of property taxes that may be imposed
by governmental agencies for services such as fire protection,  street, sidewalk
and road  maintenance,  refuse  removal,  and for  other  governmental  services
formerly  provided  without charge to property owners or occupants.  All new and
increased assessments,  taxes, fees, levies, and charges will be included within
the  definition  of property  taxes for purposes of this Lease.  Tenant will pay
Landlord  the entire  amount of any tax  allocable to or measured by the area of
the  Premises  or  the  rental  payable  under  this  Lease,  including  without
limitation,  any gross  income,  privilege,  sales or excise  tax  levied by the
state, any political subdivision of the Premises,  city,  municipal,  or federal
government,  with respect to the receipt of such rental, or upon or with respect
to the possession,  leasing,  operating,  management,  maintenance,  alteration,
repair,  use,  or  occupancy  by Tenant of the  Premises  or any  portion of the
Premises.  "Property taxes" will not include Landlord's federal or state income,
franchise, inheritance, or estate taxes.

     (d) Within one hundred twenty (120) days after December 31 of each calendar
year, the total of the actual property taxes and Operating Expenses for the said
calendar  year just  completed  shall be  determined  on an accrual  basis.  The
increase,  if any, of the said taxes and  Operating  Expenses over the Base Cost
shall be thus  determined,  and the difference,  i.e., the actual amount of such
increased taxes and Operating Expenses for the said preceding calendar year just
completed  multiplied by Tenant's Pro Rata Share,  shall be due from and payable
by Tenant to Landlord  within  thirty (30) days after the date of notice made in
writing from  Landlord to Tenant.  Landlord's  failure to deliver to Tenant such
statement  within said 120 day period,  however  shall not  constitute  a bar to
Landlord's  recovery of Operating  Expenses and property taxes. For the calendar
year in which the Term commences,  Landlord shall  reasonably  prorate  Tenant's
share of any such  increase.  For the calendar year in which the Term expires or
is terminated,  Landlord shall reasonably  project and prorate Tenant's share of
any such increase,  which share shall  thereupon be due and payable.  No refunds
will be made in the  event  Tenant's  Pro  Rata  Share of the  actual  Operating
Expenses and/or property taxes for any calendar year are less than the operative
Base  Cost.  If  Tenant's  monthly  payments  of  estimated  property  taxes and
Operating  Expenses  during the previous  calendar year exceed Tenant's share of
the actual  increase in property  taxes and Operating  Expenses,  Landlord shall
credit the excess  toward the next  rental  payment  due from Tenant to Landlord
hereunder.

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                        SCOTTSDALE EXECUTIVE OFFICE PARK
                              OFFICE BUILDING LEASE

5.   SECURITY DEPOSIT

     The Security Deposit shall be held by Landlord as security for the faithful
performance by Tenant of all the terms,  covenants and conditions of this Lease.
If Tenant  defaults  with respect to any  provision of this Lease,  Landlord may
(but  shall not be  required  to) use,  apply or retain  all or any part of this
Security Deposit for the payment of any rent or any other sum in default, or for
the payment of any other amount which Landlord may spend or become  obligated to
spend by reason of Tenant's default or to compensate Landlord for any other loss
or damage  which  Landlord  may  suffer by reason of  Tenant's  default.  If any
portion  of said  deposit  is so used or  applied,  Tenant  shall,  upon  demand
therefor,  deposit  cash with  Landlord in an amount  sufficient  to restore the
Security Deposit to its original amount and Tenant's failure so to do shall be a
breach of this  Lease.  Landlord  shall  not be  required  to keep the  Security
Deposit  separate  from its general  funds,  and Tenant shall not be entitled to
interest on such  deposit.  If Tenant shall fully and  faithfully  perform every
provision  of this  Lease to be  performed  by it, the  security  deposit or any
balance  thereof shall be returned to Tenant (or, at Landlord's  option,  to the
last permitted  assignee of Tenant's  interests  hereunder) at the expiration of
the Term,  provided  that Landlord may retain  one-half of the Security  Deposit
until such time as any  amount  due from  Tenant in  accordance  with  Article 4
hereof has been determined and paid in full.

6.   USE

     Tenant shall  continually  use the Premises for general office purposes and
shall not use or permit the  Premises to be used for any other  purpose.  Tenant
shall  not use or  occupy  the  Premises  in  violation  of the  certificate  of
occupancy  issued for the  Building,  nor in violation of the laws,  ordinances,
directions,  orders,  regulations or requirements  which are now or hereafter in
effect from time to time of the United  States of America,  the State of Arizona
or the local  municipal or county  governing  body or other  lawful  authorities
having jurisdiction thereover, and Tenant shall promptly comply with any and all
such laws, ordinances,  directions,  orders,  regulations and requirements which
shall,  by reason of the nature of Tenant's use or  occupancy  of the  Premises,
impose any duty upon Tenant or  Landlord  with  respect to the  Premises or with
respect to the use or  occupation  thereof.  Tenant shall not do or permit to be
done anything which will  invalidate or increase the cost of any fire,  extended
coverage or any other  insurance  policy  covering the Building  and/or property
located  therein  and shall  comply  with all  rules,  orders,  regulations  and
requirements  of any  board  of  fire  underwriters  or any  other  organization
performing a similar  function.  Tenant  shall  promptly  upon demand  reimburse
Landlord  for any  additional  premium  charged  for such  policy  by  reason of
Tenant's failure to comply with the provisions of this Article. Tenant shall not
do or permit  anything to be done in or about the Premises which will in any way
obstruct  or  interfere  with the rights of other  tenants or  occupants  of the
Building,  or injure or annoy them,  or use or allow the Premises to be used for
any  improper,  immoral,  unlawful or  objectionable  purpose,  nor shall Tenant
cause,  maintain or permit any  nuisance  in, on or about the  Premises.  Tenant
shall not commit or suffer to be  committed  any waste in or upon the  Premises.
Certain  specific uses are prohibited as set forth in the Rules and  Regulations
as amended from time to time.  A copy of the current  Rules and  Regulations  is
attached hereto as Exhibit I and incorporated herein.

7.   NOTICES

     Any notice  required or permitted to be given  hereunder must be in writing
and may be given by  personal  delivery or by mail.  Any notice  shall be deemed
given at the time of hand-delivery or date of mailing,  if sent by registered or
certified  mail  addressed to the addresses set forth in the  Fundamental  Lease
Provisions.  A party may specify a different  address by providing ten (10) days
prior written notice to the other parties.

8.   BROKERS

     Tenant  warrants  that it has had no dealing with any real estate broker or
agent in connection with the negotiation of this Lease,  excepting only as shown
in the  Fundamental  Lease  Provisions and that it knows of no other real estate
broker or agent who is or might be entitled to a commission in  connection  with
this,  Lease and agrees to hold  Landlord  harmless from any claims of any other
brokers.  Landlord  discloses that certain partners,  members,  shareholders and
affiliates  of Landlord  may be licensed  real estate  brokers and agents in the
State of Arizona.

9.   SURRENDER OF PREMISES AND HOLDING OVER:

     (a) Upon the expiration or earlier  termination of this Lease, Tenant shall
quit and surrender the Premises,  in good condition and repair  (reasonable wear
and tear excepted).  If the Premises are not surrendered at the end of the Lease
Term,  Tenant shall indemnify  Landlord against any loss or liability  resulting
from  delay by  Tenant  in so  surrendering  the  Premises,  including,  without
limitation,  any claims made by any succeeding  tenant or Landlord based on such
delay.

     (b) If Tenant or any  successor  in  interest  of Tenant  should  remain in
possession of the Premises in violation of Article 9 (a) after the expiration of
the Lease Term  without  executing a new lease,  then such holding over shall be
construed,  at the sole  discretion  of  Landlord,  as a tenancy  from month to.
month, subject to all the covenants,  terms,  provisions and obligations of this
Lease except Annual Basic Rent, which shall be subject to an automatic  increase
of fifty  percent (50%) over and above the amount paid in the last full calendar
month of the Lease Term  (subject to  adjustment as provided in Article 4 hereof
and prorated on a daily basis).  Nothing  contained herein shall be construed as
Landlord's  permission for Tenant to hold over unless Landlord's consent to such
tenancy is given in  writing.  In no event  shall  there be deemed an  automatic
right to any holdover.

     (c) The  voluntarv  or  other  surrender  of this  Lease by  Tenant  or the
cancellation of this Lease by mutual  agreement of Tenant and Landlord shall not
work a merger,  and shall at Landlord's option terminate all or any sublease and
subtenancies  or, at Landlord's  option  operate as an assignment to Landlord of
all or any  subleases or  subtenancies.  Landlord's  option  hereunder  shall be
exercised  by notice to Tenant and all known  subleases  and  subtenants  in the
Premises or any part thereof.

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                        SCOTTSDALE EXECUTIVE OFFICE PARK
                              OFFICE BUILDING LEASE

     (d)  Acceptance by Landlord of any rental or Operating  Expenses after such
expiration or earlier  termination shall not result in a renewal.  The foregoing
provisions  of this  paragraph  are in addition to and do not affect  Landlord's
right of re-entry  or any other  rights of Landlord  hereunder  or as  otherwise
provided by law.

10.  TAXES ON TENANT'S PROPERTY

     (a) Tenant  shall be liable for and shall pay ten days before  delinquency,
taxes  levied  against any  personal  property  placed by Tenant in or about the
Premises.  If any such taxes on Tenant's  personal  property are levied  against
Landlord or Landlord's Building and if Landlord, after written notice to Tenant,
pays the taxes based upon such  assessment,  which Landlord shall have the right
to do regardless of the validity thereof,  Tenant shall upon demand, as the case
may be, repay to Landlord the taxes so levied against Landlord.

     (b) If Tenant  improvements in the Premises,  whether installed and/or paid
for by Landlord  or Tenant and  whether or not affixed to the  Building so as to
become  a part  thereof,  are  assessed  for real  property  tax  purposes  at a
valuation higher than the valuation at which Tenant  improvements  conforming to
Landlord's "Building Standard" in other space in the Building are assessed, then
the real property taxes and assessments  levied against Landlord or the Building
by reason of such excess  assessed  valuation shall be deemed to be taxes levied
against all personal  property of Tenant and shall be governed by the provisions
of subarticle (a) above. If the records of the County Assessor are available and
sufficiently  detailed to serve as a basis for  determining  whether said Tenant
improvements  are  assessed  at a higher  valuation  than  Landlord's  "Building
Standard", such records shall be binding on both the Landlord and Tenant. If the
records of the County  Assessor are not  available or  sufficiently  detailed to
serve as a basis for making said determination, the actual costs of construction
shall be used. Landlord's Building Standards are set forth on Exhibit C attached
hereto.

11.  CONDITION OF PREMISES

     Tenant  acknowledges  that  neither  Landlord nor any agent of Landlord has
made any representation or warranty with respect to the Premises or the Building
or with  respect  to the  suitability  of either  for the  conduct  of  Tenant's
business.  The taking of possession of the Premises by tenant shall conclusively
establish that the Premises and said Building were at such time in  satisfactory
condition.

12.  ALTERATIONS

     (a) Tenant shall make no alterations or  improvements in or to the Premises
without Landlord's prior written consent,  and then only by contractors approved
in  writing by  Landlord.  All such work shall be done at such times and in such
manner as  Landlord  may  designate.  All such work shall be  performed  in full
compliance  with  any and  all  laws,  rules,  orders,  ordinances,  directions,
regulations and requirements now or hereafter in effect from time to time of all
governmental  and public  agencies,  authorities and bodies having  jurisdiction
thereover,  and in full compliance with the rules and  requirements of any board
of fire  underwriters and any similar body.  Before  commencing any work, Tenant
shall  give  Landlord  at least  five (5) days  written  notice of the  proposed
commencement  of such work and shall secure at Tenant's own cost and expense,  a
labor and  materials  payment  bond,  satisfactory  to Landlord,  for said work.
Tenant further  covenants and agrees that any mechanic's  lien filed against the
Premises  or against  the  Building  for work  claimed to have been done for, or
materials  claimed to have been  furnished  to  Tenant,  will be  discharged  by
Tenant, by bond or otherwise,  within ten (10) days after the filing thereof, at
the cost and  expense  of  Tenant.  All  alterations  or  improvements  upon the
Premises,  made by either party,  including  (without limiting the generality of
the foregoing) all wallcovering,  built-in cabinet work,  paneling and the like,
shall,  unless Landlord elects otherwise,  become the property of Landlord,  and
shall remain upon, and be surrendered with the Premises,  as a part thereof,  at
the end of the Term  hereof,  except that  Landlord  may,  by written  notice to
Tenant,  given at least  thirty (30) days prior to the end of the Term,  require
Tenant to  forthwith  remove all  partitions,  counters,  railings  and the like
installed by tenant, and Tenant shall repair or, at Landlord's option, shall pay
to the Landlord all costs arising from such removal.

     (b) All  articles of personal  property  and  movable  partitions  owned by
Tenant or installed by Tenant at its expense in the Premises shall be and remain
the property of Tenant and may be removed by Tenant at any time during the lease
term when Tenant is not in default hereunder. If Tenant shall fail to remove all
of its effects from said Premises upon  termination of this Lease the same shall
be deemed abandoned by Tenant and Landlord may dispose of them in any fashion it
deems reasonable.

13.  REPAIRS AND MAINTENANCE

     (a) Tenant shall, at Tenant's sole cost and expense,  keep the Premises and
every  part  thereof  in good  condition  and  repair.  Tenant  shall,  upon the
expiration or sooner  termination of the term hereof,  surrender the Premises to
Landlord in the same  condition  as when  received,  ordinary  wear and tear and
damage from causes beyond the reasonable control of Tenant excepted.

     (b)  Anything  contained  in the  foregoing  Article  13(a) to the contrary
notwithstanding,  Landlord shall repair and maintain the structural  portions of
the  Building,  including  the  basic  plumbing,  heating,  ventilation  and air
conditioning and electrical  systems installed or furnished by Landlord,  unless
such maintenance and repairs are caused in part or in whole by the act, neglect,
fault or omission  of any duty by Tenant,  its agents,  servants,  employees  or
invitees, in which case Tenant shall pay to Landlord the reasonable cost of such
maintenance  and repairs.  Landlord shall not be  responsible  for replacing any
plate  glass.  Landlord  shall not be liable  for any  failure  to make any such
repairs or to perform any  maintenance  unless such failure shall persist for an
unreasonable  time  after  written  notice  of  the  need  of  such  repairs  or
maintenance  is given to  Landlord  by Tenant.  Tenant  waives any right to make
repairs at Landlord's expense under any law, statute or ordinance now

                                       5
<PAGE>

                        SCOTTSDALE EXECUTIVE OFFICE PARK
                              OFFICE BUILDING LEASE

or hereafter in effect, and Tenant shall be responsible for all items of repair,
maintenance and improvement or  reconstruction  as may at any time and from time
to time be required to comply with all  environmental,  remedial and other laws,
ordinances, rules, directions, regulations,  requirements, guidelines and orders
now or  hereinafter in effect from time to time of all  governmental  and public
agencies,  authorities  and bodies  having  jurisdiction  thereover  which shall
impose any duty upon  Landlord or Tenant with respect to the use,  occupation or
alteration of the Premises or any part thereof, including but not limited to the
Occupational  Safety and Health Act,  the Clean Air Act and the  Americans  with
Disabilities Act.

14.  ENTRY BY LANDLORD

     Landlord  reserves the right to enter the Premises to (a) inspect the same,
(b) supply janitor  services and any other service to be provided by Landlord to
Tenant hereunder,  (c) submit said Premises to prospective  purchasers,  lenders
and other persons with an actual or potential  business interest in the Premises
or the Building,  (d) alter, improve or repair the Premises or any other portion
of the Building (including tenant space or common areas of the Building adjacent
to the  Premises),  all without being deemed guilty of an eviction of Tenant and
without  abatement of rent, and may for that purpose erect scaffolding and other
necessary  structures where reasonably  required by the character of the work to
be performed,  providing that the business of Tenant shall be interfered with as
little as is reasonably  practicable.  During the last twelve (12) months of the
Term of the Lease,  Landlord may, upon  reasonable  notice to Tenant,  enter the
Premises for the purpose of showing prospective tenants the Premises. If, during
the last month of the Lease Term, Tenant shall have removed all or substantially
all of Tenant's  property  therefrom,  Landlord may immediately enter and alter,
renovate and redecorate the Premises,  without elimination or abatement of Rent,
or other  compensation,  and such acts shall have no effect upon this Lease.  In
the event Landlord should be required to enter the Premises due to an emergency,
Landlord  shall attempt to contact  Tenant as soon as reasonably  possible under
the circumstances.  Tenant hereby waives any claim for damages for any injury or
inconvenience to or interference with Tenant's  business,  any loss of occupancy
or quite enjoyment of the Premises, and any other loss occasioned thereby.

15.  UTILITIES AND SERVICES

     Provided  that  Tenant  is not in  default  hereunder,  Landlord  agrees to
furnish to the Premises during reasonable hours of generally recognized business
days,  subject to the conditions and in accordance  with the standards set forth
in the  Building's  Standards for Utilities  arid  Services  attached  hereto as
Exhibit H and incorporated herein, reasonable quantities of electric current for
normal lighting and fractional  horsepower  office machines,  water for lavatory
and  drinking  purposes,  heat  and  air  conditioning  required  in  Landlord's
judgement for the  comfortable use and occupation of the Premises during regular
business  hours,   janitorial  service,  and  elevator  service  by  nonattended
automatic  elevators.  Landlord shall not be liable for, and Tenant shall not be
entitled to any abatement or reduction of rent by reason of  Landlord's  failure
to  furnish  any of the  foregoing  when such  failure  is  caused by  accident,
breakage,  electrical  spikes and surges,  repairs,  strikes,  lockouts or other
labor  disturbances or labor disputes of any character,  or for any other causes
beyond Landlord's reasonable control.

16.  INDEMNIFICATION

     (a) Tenant shall indemnify and hold harmless  Landlord against and from any
and all claims  arising from  Tenant's use of the Premises or the conduct of its
business or from any  activity,  work,  or thing done,  permitted or suffered by
Tenant in or about the Premises and in case any action or  proceeding be brought
against  Landlord by reason  thereof,  Tenant upon  notice from  Landlord  shall
defend  the same at  Tenant's  expense  by counsel  reasonably  satisfactory  to
Landlord.  Tenant, as a material part of the  consideration to Landlord,  hereby
assumes  all risk of damage to the  property  of & injury to persons in, upon or
about the Premises from any cause whatsoever  except that which is caused by the
failure of Landlord to observe any of the terms and conditions of this Lease and
such failure has  persisted  for an  unreasonable  period of time after  written
notice of such failure and Tenant  hereby  waives all claims in respect  thereof
against Landlord.

     (b) Without limiting Tenant's indemnity, Tenant shall, at its sole cost and
expense,  procure and  maintain  throughout  the term of this Lease,  commercial
general liability  insurance  (including broad property damage) in the amount of
$1,000,000 per occurrence and $3,000,000 in the annual  aggregate.  All policies
will name the  Landlord  and its  managing  agents as  additional  insureds  and
executed  copies of such policies of insurance or  certificates  thereof will be
delivered to Landlord  within ten (10) days after  delivery of possession of the
Premises to Tenant and within  thirty (30) days prior to the  expiration  of the
term of each policy.  All insurance  policies must contain a provision  that the
insurance  carrier will notify in writing the insured and  Landlord  thirty (30)
days  in  advance  of any  cancellation  or  lapse  or the  effective  date of a
reduction in the amount of insurance. All public liability,  property,damage and
other casualty  insurance shall be written as primary  policies.  Tenant further
covenants and agrees to increase  liability  insurance in additional  amounts as
Landlord may reasonably  require.  All policies of insurance  shall be issued by
responsible insurance companies qualified to do business in the State of Arizona
with a Best's Rating Guide rating of at least A-Class IX.

17.  DAMAGE TO TENANT'S PROPERTY

     Notwithstanding  the  provisions  of Article 16 to the  contrary,  Landlord
shall not be liable for any damage to property  entrusted  to  employees  of the
Building,  or for loss or damage to any  property  by theft.  Tenant  shall give
prompt notice to Landlord in case of fire or accidents in the Premises or in the
Building.

18.  INSURANCE SUBROGATION WAIVER

     Landlord  and Tenant  hereby  mutually  waive  their  respective  rights of
recovery against the other for any loss occasioned by perils  typically  insured
against by an "all  risk"  insurance  policy.  Each  shall  obtain  any  special
endorsements, if required by their insurer, to further effect this waiver.

                                       6
<PAGE>

                        SCOTTSDALE EXECUTIVE OFFICE PARK
                              OFFICE BUILDING LEASE

19.  DAMAGE OR DESTRUCTION

     (a) In the event the Premises are partially or totally destroyed or damaged
by fire or any other  insured  casualty  so as to become  partially  or  totally
untenantable,  the same shall be  repaired or rebuilt as promptly as possible at
the expense of Landlord,  unless  Landlord shall elect not to repair or rebuild.
In the event of such repair or  reconstruction,  the Rent shall be abated to the
extent the Premises are rendered  untenantable during such repair or rebuilding;
provided,  however, that the Rent shall not abate if the damage is caused by any
act or omission of Tenant, its agents,  servants,  employees or any other person
entering  upon the Premises  under the express or implied  invitation of Tenant.
Tenant shall give  Landlord  immediate  written  notice of such damage and shall
cooperate with Landlord and the insurance carrier in processing any claims under
such insurance.

     (b) If:

          (i) more than one-third (1/3) of the Premises or the Building shall be
          destroyed or damaged by fire or any other insured casualty, or

          (ii) the Premises are rendered  partially or totally  untenantable  as
          the result of a casualty occurring during the final twelve (12) months
          of the Lease Term, or

          (iii) Landlord determines, in its sole discretion, that restoration of
          the Premises or the Building cannot reasonably be completed within one
          hundred eighty (180) days,

then in any such event, Landlord may elect (x) to rebuild or repair the Premises
or the Building,  with reasonable speed and diligence following such destruction
or damage and this Lease shall continue in full force and effect,  or (y) not to
so  rebuild  or  repair,  in which  event  this  Lease  shall be  deemed to have
terminated  as of the date of such  damage  or  destruction.  In  either  event,
Landlord shall give Tenant  written  notice of its intention  within thirty (30)
days after  such  destruction  or damage.  Tenant  hereby  expressly  waives the
provisions of Arizona Revised Statutes Section 33-343 with respect to the damage
or destruction of the Premises or the Building.

     (c) In the event of  restoration as herein  provided,  rent shall be abated
proportionately  in the ratio  which  Tenant's  use of the  Premises is impaired
during the period of such restoration.

     (d) In the event that damage is due to any  uninsured  cause,  Landlord may
elect to terminate this Lease.

     (e) It is hereby  understood  that if Landlord is obligated to or elects to
restore as herein provided, Landlord shall be obligated to make restoration only
of those  portions of said  Building  and said  Premises  which were  originally
provided at  Landlord's  expense,  and the repair and  restoration  of items not
provided at Landlord's expense shall be the obligation of Tenant.

     (f)  Notwithstanding  anything to the contrary  contained in this  Article,
Landlord shall not have any  obligation  whatsoever to restore the Premises when
the damage  resulting from any casualty covered under this Article occurs during
the last twelve (12) months of the Term or any extension thereof.

     (g) No  damages,  compensation  or claim  shall be payable by  Landlord  to
Tenant for inconvenience,  loss of business or annoyance arising from any repair
or  rebuilding  of any  portion  of the  Premises  or the  Building  or from the
termination of this Lease pursuant to this Article.

     (h) Notwithstanding anything contained herein to the contrary, in the event
the holder of any  indebtedness  secured by a mortgage or deed of trust covering
the  Premises   requires  that  the  insurance   proceeds  be  applied  to  such
indebtedness,  then Landlord  shall have the right to terminate this Lease after
such damage  occurs,  by delivering  written  notice of  termination  to Tenant,
whereupon all rights and obligations hereunder shall cease and terminate.

20.  EMINENT DOMAIN

     If all or any part of the  Premises  shall be  taken or  appropriated  by a
public or quasi-public authority under the power of eminent domain, either party
hereto  shall have the right,  at its  option,  to  terminate  this  Lease,  and
Landlord shall be entitled to any and all income,  rent,  award, or any interest
thereon whatsoever which may be paid or made in connection  therewith and Tenant
shall have no claim against Landlord for the value of any unexpired term of this
Lease. If a part of the Premises shall be so taken or  appropriated  and neither
party hereto shall elect to terminate  this Lease,  the rental  thereafter to be
paid shall be  equitably  reduced.  If any part of the  Building  other than the
Premises shall be so taken or  appropriated,  Landlord shall have the right,  at
its option,  to terminate  this Lease and shall be entitled to the entire award,
as above provided.

                                       7
<PAGE>

                        SCOTTSDALE EXECUTIVE OFFICE PARK
                              OFFICE BUILDING LEASE

21.  DEFAULTS AND REMEDIES

     (a)  The  occurrence  of any  one or more  of the  following  events  shall
constitute a default hereunder by Tenant:

          (i) The  abandonment of the Premises by Tenant.  Abandonment is herein
          defined to  include,  but is not limited to any absence by Tenant from
          the Premises for five (5) consecutive  days or longer while in default
          of any provision of this Lease.

          (ii) The  failure by Tenant to make any  payment  of rent,  additional
          charges or Operating Expenses required to be paid by Tenant hereunder,
          as and when due,  where such  failure  shall  continue for a period of
          three (3) days after written notice thereof from Landlord to Tenant.

          (iii) If in any one period of twelve (12) consecutive  months,  Tenant
          shall have been in default in the  payment of rental  herein more than
          two (2) times and  Landlord,  because  of such  defaults,  shall  have
          served  upon Tenant  within  said twelve (12) month  period two (2) or
          more default notices, then the third event otherwise allowing Landlord
          to  notice a  default  shall be  deemed  to be a  noncurable  event of
          default and Landlord shall be entitled to immediate  possession of the
          Premises..

          (iv) The failure by Tenant to observe or perform any of the express or
          implied  covenants  or  provisions  of this  Lease to be  observed  or
          performed  by Tenant,  other than as  specified  in (i) or (ii) above,
          where such failure shall  continue for a period of ten (10) days after
          written  notice  thereof from Landlord to Tenant;  provided,  however,
          that if the nature of Tenant's default is such that more than ten (10)
          days are  reasonably  required for its cure,  than Tenant shall not be
          deemed to be in default if Tenant shall commence such cure within said
          ten-day  period  and  thereafter  diligently  prosecute  such  cure to
          completion.

     (b) In the event of any such  default by Tenant,  in  addition to any other
remedies available to Landlord at law or in equity, Landlord may, without notice
or demand of any kind to Tenant, have any one or more of the following described
remedies:

          (i) Landlord may re-enter the Premises and take possession of the same
          and of all  equipment  and  fixtures  of Tenant  therein  and expel or
          remove  Tenant and all other parties  occupying  the Premises  without
          terminating  this  Lease,  at any time and from time to time relet the
          Premises or any part thereof for the account of Tenant, for such term,
          upon such  conditions  and at such rental as Landlord may deem proper.
          In such event  Landlord  may  receive  and  collect the rent from such
          reletting  and apply it against any amounts due from Tenant  hereunder
          (including  without  limitation  such  expenses as  Landlord  may have
          incurred in recovering'  possession of the Premises,  placing the same
          in good  order  and  condition,  altering  or  repairing  the same for
          reletting,  and all other expenses,  commissions and charges including
          attorneys' fees which Landlord may have paid or incurred in connection
          with such repossession and reletting). Whether or not the Premises are
          relet,  Tenant shall pay Landlord all rent and other charges  required
          to be  paid  by  Tenant  up to the  date of  Landlord's  re-entry  and
          thereafter  Tenant  shall  pay  Landlord,  until  the end of the  term
          hereof,  the amount of all rent and other charges  required to be paid
          by Tenant  hereunder,  less the proceeds of such reletting  during the
          term hereof, if any, after payment of Landlord's  expenses as provided
          above.  Such  payments  by  Tenant  shall be due at such  times as are
          provided elsewhere in this Lease, and Landlord need not wait until the
          termination  of  this  Lease  to  recover  them  by  legal  action  or
          otherwise. Landlord shall not, by any re-entry or other act, be deemed
          to have terminated this Lease or the liability of Tenant for the total
          rent  hereunder  unless  Landlord  shall give Tenant written notice of
          Landlord's election to terminate this Lease.

          (ii) Landlord may give written notice to Tenant of Landlord's election
          to terminate this Lease, re-enter the Premises with or without process
          of law and  take  possession  of the  same  and of all  equipment  and
          fixtures  therein,  and expel or remove  Tenant and all other  parties
          occupying the Premises,  without being liable to any  prosecution  for
          such reentry.

          (iii) If Tenant shall have delivered a letter of credit to Landlord as
          described in the  Fundamental  Lease  Provisions  in Article 1 hereof,
          Landlord  may draw on the letter of credit and apply such funds in any
          manner so provided in this Article 21 against any amounts due or which
          may become due from Tenant hereunder  including,  without  limitation,
          all amounts  identified in Article 21 (c) below, past due Annual Basic
          Rent and  Operating  Expenses  and such  expenses as Landlord may have
          incurred in recovering possession of the Premises, placing the same in
          good  order  and  condition,   altering  or  repairing  the  same  for
          reletting,  and all other expenses,  commissions and charges including
          attorneys' fees which Landlord may have paid or incurred in connection
          with such repossession and reletting.

     (c) In the event of Tenant's default and Landlord's  retaking of possession
of the Premises,  whether this Lease is  terminated  by Landlord or not,  Tenant
agrees to pay to Landlord as additional items of damages:

          (i)  the  cost  of   repairs,   alterations,   redecorating,   leasing
          commissions  and Landlord's  other expenses  incurred in reletting the
          Premises to a new lessee, and

          (ii) if Landlord has  furnished  Tenant with a sum of money or with an
          item or items of value as and for an incentive or allowance for Tenant
          to enter into this Lease,  an amount equal to the product  obtained by
          multiplying  the number of Lease Years remaining under the Lease times
          the quotient  obtained after dividing the aggregate amount of all such
          incentives  and  allowances if monetary  (together  with the aggregate
          cost thereof to Landlord if non-monetary) by the number of Lease Years
          under the original Lease Term. Should Landlord elect to terminate this
          Lease under the provisions of this Article,  Landlord shall thereupon,
          without  waiting for the end of the Lease Term, be entitled to recover
          from Tenant as damages the amount,  if any, by which the present value
          of the aggregate of rental and  Additional  Charges  payable by Tenant
          for the  balance of the Lease  Term,  using a  discount  rate of eight
          percent (8%) per annum,  shall exceed the then reasonable rental value
          of the  Premises for the  remainder of the Lease Term,  in addition to
          recovering  the rent then  unpaid,  if any.  For all  purposes of this
          Article  21, the  rental  agreed to be paid by Tenant or the amount of
          rental

                                       8
<PAGE>

                        SCOTTSDALE EXECUTIVE OFFICE PARK
                              OFFICE BUILDING LEASE

          payable by Tenant  shall be deemed to include  the Annual  Basic Rent,
          Operating  Expenses  and all other sums  required to be paid by Tenant
          pursuant  to the terms of this  Lease.  All such sums,  other than the
          Annual  Basic  Rental,  shall be  computed on the basis of the average
          monthly  amount  thereof  accruing  during the  immediately  preceding
          twelve (12)  months'  period,  except that if it becomes  necessary to
          compute such rental before a twelve (12) month period has elapsed then
          on the basis of the average  monthly  amount thereof  accruing  during
          such shorter period.

     (d) The remedies given to Landlord in this Article shall be in addition and
supplemental  to any and all other rights and remedies  which  Landlord may have
whether hereunder or at law or in equity.

     (e) The waiver by Landlord of any breach of any term, covenant or condition
herein  contained  shall not be deemed to be a waiver of such term,  covenant or
condition or any  subsequent  breach of the same or any other term,  covenant or
condition  herein  contained.  The  subsequent  acceptance  of rent or other sum
hereunder by Landlord shall not be deemed to be a waiver of any preceding breach
of Tenant of any term,  covenant  or  condition  of this  Lease,  other than the
failure  of  Tenant  to pay the  particular  rental  or other  sum so  accepted,
regardless  of  Landlord's  knowledge  of such  preceding  breach at the time of
acceptance of such rent or other sum. No  endorsement  or statement on any check
or any letter  accompanying  any check or payment of a lesser amount of any rent
or  other  sum  hereunder  shall be  deemed  an  accord  and  satisfaction,  and
Landlord's  acceptance  of such check or lesser  amount shall be on account only
and without prejudice to Landlord's right to recover the balance of such rent or
other sum, none of Landlord's  rights and remedies  being affected  thereby.  No
covenant,  term,  or condition of this Lease shall be deemed to have been waived
by Landlord unless such waiver shall be in writing by Landlord.

22.  ASSIGNMENT AND SUBLETTING

     (a) Tenant shall not,  either  voluntarily  or by  operation of law,  sell,
hypothecate or transfer this Lease,  or sublet the Premises or any part thereof,
or permit the  Premises or any part  thereof to be occupied by anyone other than
Tenant or Tenant's  employees,  without the prior written consent of Landlord in
each  instance,  which consent may be given or withheld in  Landlord's  absolute
discretion.  If Landlord gives its consent to any such assignment,  such consent
may be conditioned on the assignee demonstrating financial and credit worthiness
greater than or equal to assignor,  and acceptable to Landlord,  in its sole and
absolute  discretion.  Any  Landlord-approved  assignment  or other  transfer or
subletting shall be subject in each instance to the recapture option of Landlord
set forth  herein and, in any event,  Tenant  agrees to pay over to Landlord all
excess sublease  rental  received by Tenant from any such approved  subtenant or
assignee. Any sale, assignment,  mortgage,  transfer or subletting of this Lease
which is not in compliance with the provisions of this Article shall be void and
shall, at the option of Landlord,  terminate this Lease. The consent by Landlord
to any assignment or subletting  shall not be construed as relieving Tenant from
obtaining the express written  consent of Landlord to any further  assignment or
subletting or as releasing  Tenant from any  liability or  obligation  hereunder
whether or not then  accrued.  If  Landlord  shall  consent to a  subletting  or
assignment  hereof,  Tenant  shall pay  Landlord's  reasonable  attorneys'  fees
incurred in connection giving such consent.

     (b) If Tenant  desires  at any time to assign  this  lease or to sublet the
Premises or any portion thereof, it shall first notify Landlord of its desire to
do so and shall  submit in  writing  to  Landlord  (i) the name of the  proposed
subtenant or assignee; (ii) the nature of the proposed subtenant's or assignee's
business to be carried on in the premises; (iii) the terms and provisions of the
proposed sublease or assignment;  and (iv) such reasonable financial information
as Landlord  may request  concerning  the proposed  subtenant  or assignee.  Any
request for Landlord's approval of a sublease or assignment shall be accompanied
with a check in such reasonable  amount as Landlord shall advise for the cost of
review and/or  preparation of any documents  relating to such proposed transfer.
At any time within fifteen (15) days after Landlord's receipt of the information
specified  herein,  Landlord may by written notice to Tenant elect to either (x)
sublease  the  Premises or the  portion  thereof as shall be  specified  in said
notice for its own account upon the same terms as those  offered to the proposed
subtenant or assignee, as the case may be, or (y) terminate this lease as to the
portion  (including all) of the Premises so proposed to be subleased or assigned
with a proportionate  abatement in the rent payable hereunder.  If Landlord does
not  exercise  either of these  options  within said  fifteen-day  period  then,
provided  Landlord shall have given  approval of such  subletting or assignment,
Tenant may  thereafter  within  ninety  (90) days after the  expiration  of said
fifteen-day  period enter into a valid assignment or sublease of the Premises or
portion  thereof,  upon the terms and  conditions  described in the  information
required to be  furnished  by Tenant to Landlord  hereunder,  or other terms not
less favorable to Tenant.

     (c) No subletting or assignment,  even with the consent of Landlord,  shall
relieve  Tenant  of its  obligation  to pay the rent and  perform  all the other
obligations  to be  performed by Tenant  hereunder.  The  acceptance  of rent by
Landlord from any other person shall not be deemed to be a waiver by Landlord of
any provision of this Lease or to be a consent to any assignment or subletting.

     (d) Any  conveyance,  assignment,  sale or other  transfer  of more  than a
twenty-five  percent (25%) interest in Tenant, in the aggregate,  in one or more
transactions,  by  voluntary  conveyance  or  operation  of law,  to a person or
persons who are not  shareholders or partners,  as the case may be, in Tenant as
the creation of Tenant's interest hereunder (except in the case of a corporation
whose shares are publicly  traded) shall constitute an "assignment" for purposes
of this Article.

23.  SUBORDINATION

     This Lease shall be subject and subordinate at all times to the lien of any
mortgages or deeds of trust in any amount or amounts whatsoever now or hereafter
placed on or against the land and estate therein,  or portion  thereof,  without
the necessity of the execution  and delivery of any further  instruments  on the
part of the Tenant to effectuate such subordination;  provided,  however that so
long as Tenant is not in  default,  the terms of the Lease shall not be affected
by termination or

                                       9
<PAGE>

                        SCOTTSDALE EXECUTIVE OFFICE PARK
                              OFFICE BUILDING LEASE

foreclosure or other proceedings under such mortgages or deeds of trust,  Tenant
hereby  agreeing,  at the written  request of the purchaser of the Building,  in
such foreclosure or other  proceedings,  to attorn to such purchaser or, at such
purchaser's option, to enter into a new lease for the balance of the term hereof
upon  the  same  terms  and   provisions   as  are   contained  in  this  Lease.
Notwithstanding  the  foregoing,  Tenant shall  execute and deliver such further
instrument or instruments  evidencing  such  subordination  of this Lease to the
lien of any such  mortgage or mortgages or deeds of trust as may be requested by
Landlord within ten (10) days from Tenant's receipt of such request. Any request
for  Landlord's  subordination  shall  be  accompanied  with  a  check  in  such
reasonable  amount  as  Landlord  shall  advise  for the cost of  review  and/or
preparation of any documents relating to such proposed subordination.

24.  ESTOPPEL CERTIFICATE

     (a) Upon receipt of a written  request from  Landlord,  Tenant shall,  from
time to time, and within ten (10) days from Tenant's  receipt  of~such  request,
execute,  acknowledge  and  deliver to  Landlord  a  statement  in  writing  (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 dates to which the rental
and other charges are paid in advance, if any, (ii) acknowledging that there are
not,  to  Tenant's  knowledge,  any  uncured  defaults  on the part of  Landlord
hereunder,  or specifying such defaults if any are claimed, and (iii) certifying
any  other  reasonable  information  required  by  a  mortgagee  or  prospective
purchaser  of the  Building.  Any  such  statement  may be  relied  upon  by any
prospective purchaser or encumbrancer of all or any portion of the Project.

     (b) Tenant's  failure to deliver such  statement  within such time shall be
conclusive upon Tenant (i) that this Lease is in full force and effect,  without
modification  except as may be  presented  by  Landlord,  (ii) that there are no
uncured  defaults in  Landlord's  performance,  and (iii) that not more than one
month's rental has been paid in advance.

25.  BUILDING PLANNING

     Landlord,  upon notifying  Tenant in writing,  shall have the right to move
Tenant to other space in the Building,  at Landlord's sole cost and expense, and
the terms and  conditions  of this Lease shall  remain in full force and effect,
save and excepting that the Premises  shall be in a new location.  The costs and
expenses of moving which shall be paid by Landlord are limited to actual  direct
costs of moving Tenant's furniture,  equipment and supplies.  Landlord shall not
pay and shall not be liable for any indirect or consequential  costs,  losses or
damages.

26.  RULES AND REGULATIONS

     Tenant shall  faithfully  observe and comply with the rules and regulations
governing  the building  and Project and all  reasonable  and  nondiscriminatory
modifications thereof and additions thereto from time to time put into effect by
Landlord.  Any such  modification  or addition  shall not deprive  Tenant of the
principal benefits afforded by this Lease.  Landlord shall not be responsible to
Tenant for the violation or  non-performance  by any other tenant or occupant of
the Project and Building of any said rules and regulations.

27.  CONFLICT OF LAWS

     The laws of the State of Arizona shall govern the  validity,  construction,
performance and  enforcement of this Lease.  Should either party institute legal
action to enforce any obligation  contained  herein, it is agreed that the venue
of such suit or action shall be Maricopa County,  Arizona, and each party waives
the right to a jury in any action,  proceeding or counterclaim brought by either
of them against the other on any matters  whatsoever  arising  under this Lease.
Although the printed provisions of this Lease were drawn by Landlord, Tenant has
had the  opportunity to consult with an attorney and negotiate the terms hereof;
therefore,  this Lease shall not be construed  either for or against Landlord or
Tenant,  but shall be  interpreted  in accordance  with the general tenor of its
language.

28.  COMMON AREAS

     Tenant shall have the nonexclusive right, in common with others, to the use
of common entrances,  central atrium area, hallways,  lobbies, elevators, ramps,
drives,  stairs  and  similar  access and  serviceways  in and  adjacent  to the
Building  subject  to such  nondiscriminatory  rules and  regulations  as may be
adopted by  Landlord.  Landlord  may from time to time  eliminate or add to said
Common Areas,  provided the same does not materially  affect  Tenant's access to
the Premises.

29.  SUCCESSORS AND ASSIGNS

     Except  as  otherwise  provided  in  this  Lease,  all  of  the  covenants,
conditions and provisions of this Lease shall be binding upon and shall inure to
the   benefit  of  the   parties   hereto   and   respective   heirs,   personal
representatives, successors and assigns.

30.  ATTORNEYS' FEES

     In the event that either  Landlord or Tenant  brings suit against the other
because  of the  breach  of any  Provision  of this  Lease,  then all  costs and
expenses, including reasonable attorneys' fees, incurred by the prevailing party
therein  shall be paid by the other party,  which  obligation on the part of the
other party shall be deemed to have accrued on the date of the  commencement  of
such action and shall be enforceable  whether or not the action is prosecuted to
judgment. In addition, Landlord shall be entitled to all attorneys' fees and all
other  costs  incurred  in the  preparation  and service of any notice or demand
hereunder,  whether or not a legal action is subsequently commenced, which shall
be  payable  as  additional  rent upon  demand by  Landlord.  Landlord  shall be
entitled to receive from Tenant its reasonable  attorney fees for responding to,
monitoring  and filing such  pleadings as are  necessary  to protect  Landlord's
interests in the event any bankruptcy  proceeding is filed by or against Tenant.
In addition, in the event Tenant makes any request upon Landlord

                                       10
<PAGE>

                        SCOTTSDALE EXECUTIVE OFFICE PARK
                              OFFICE BUILDING LEASE

causing or requiring Landlord to process,  review,  negotiate and/or prepare (or
cause to be processed,  reviewed,  negotiated  and/or  prepared) any document or
documents  in  connection  with or arising  out of or as a result of this Lease,
then,  Tenant  shall  reimburse  Landlord or its designee  promptly  upon demand
therefor a reasonable processing,  reviewing, negotiating and/or documenting fee
(including but not limited to attorney's  fees) in conjunction with such request
in an amount not to exceed $500.00.

31.  PERFORMANCE BY TENANT

     (a) All  covenants to be performed by Tenant shall be performed at Tenant's
sole cost and expense and without any abatement of rent. If Tenant shall fail to
pay any sum of money,  other than rent,  required to be paid by it  hereunder or
shall fail to perform any other act on its part to be performed  hereunder,  and
such failure shall  continue for ten (10) days after notice thereof by Landlord,
Landlord may,  without  releasing  Tenant from any  obligations but shall not be
obligated  to,  make any such  payment or perform any such other act on Tenant's
part to be made or performed.  All sums so paid by Landlord, as well as any rent
or other  amount owed by Tenant to Landlord  which is not paid when due, and all
necessary  incidental  costs shall bear interest  thereon at an annual  interest
rate of eighteen  percent (18%) from the date of such payment by Landlord or the
rental due date,  and shall be payable to  Landlord  on demand.  The  payment of
interest on such  amounts  shall not excuse or cure any default by Tenant  under
this Lease. If the interest rate specified in this Lease is higher than the rate
permitted  by law, the interest  rate is hereby  decreased to the maximum  legal
interest rate permitted by law.

     (b) In addition  to the  accrual of interest as set forth in the  preceding
Article  31(a),  Tenant  hereby  acknowledges  that  late  payment  by Tenant to
Landlord of rent or other sums due hereunder  will cause Landlord to incur costs
not  contemplated  by this Lease,  the exact  amount of which will be  extremely
difficult  to  ascertain.  Such  costs  may  include,  but are not  limited  to,
processing  and  accounting  charges  and late  charges  which may be imposed on
Landlord by any ground lease,  mortgage or trust deed (if any)  encumbering  the
Premises.  Accordingly,  if any  installment of rent or of a sum due from Tenant
shall not be received by Landlord or Landlord's  designee  within three (3) days
after said amount is due, then Tenant shall pay to Landlord a recurring, monthly
late  charge  equal to ten percent  (10%) of such  overdue  amount.  The parties
hereby agree that such late charges represent a fair and reasonable  estimate of
the cost that  Landlord  will  incur by reason of the late  payment  by  Tenant.
Acceptance of such late charges by the 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.

32.  MORTGAGEE PROTECTION

     In the  event of any  default  on the part of  Landlord,  Tenant  will give
notice by registered or certified mail to any  beneficiary of a deed of trust or
mortgagee  of a mortgage  covering the Premises  whose  address  shall have been
furnished  it, and shall  offer  such  beneficiary  or  mortgagee  a  reasonable
opportunity  to cure the default,  including  time to obtain  possession  of the
Premises  by power  of sale or a  judicial  foreclosure,  if such  should  prove
necessary to effect a cure.

33.  DEFINITION OF LANDLORD

     The  term  "Landlord"  as  used  in  this  Lease,  so far as  covenants  or
obligations on the part of Landlord are concerned,  shall be limited to mean and
include only the fee owner or owners at the time in  question,  and in the event
of any transfer or transfers of any such estate,  the Landlord herein named (and
in case of any subsequent  transfer,  the then grantor)  shall be  automatically
freed and relieved  from and after the date of such transfer of all liability as
respect the  performance  of any covenants on the part of Landlord  contained in
this Lease  thereafter  to be performed  and,  without  further  agreement,  the
transferee  of such title shall be deemed to have  assumed and agreed to observe
and  perform  any  and all  covenants  of the  Landlord  hereunder,  during  its
ownership  of the  premises.  Landlord  may transfer its interest in the Project
without the consent of Tenant and such transfer or subsequent transfer shall not
be deemed a violation on Landlord's  part of any of the terms and  conditions of
this Lease.

34.  WAIVER

     The waiver by Landlord of any breach of any term herein contained shall not
be deemed to be a waiver of any subsequent  breach of the same or any other term
herein contained, nor shall any custom or practice which may grow up between the
parties in the  administration  of the terms hereof be deemed a waiver of, or in
any way affect,  the right of Landlord to insist upon the  performance by Tenant
in strict  accordance  with  said  terms..  The  subsequent  acceptance  of rent
hereunder by Landlord shall not be deemed to be a waiver of any preceding breach
by Tenant of any term of this Lease, other than the failure of Tenant to pay the
particular  rent  so  accepted,  regardless  of  Landlord's  knowledge  of  such
preceding breach at the time of acceptance to such rent.

35.  IDENTIFICATION OF TENANT

     If more than one person executes this Lease as Tenant,  (a) each of them is
jointly and severally  liable for performing all of the terms of this Lease,  to
be performed by Tenant, and (b) the act of any one or more of them, with respect
to the  Tenancy of this  Lease,  including,  but not  limited  to, any  renewal,
extension,  expiration,  termination  or  modification  of this Lease,  shall be
binding upon each and all of the persons executing this Lease as Tenant with the
same force and effect as if each of them had so acted.

                                       11
<PAGE>

                        SCOTTSDALE EXECUTIVE OFFICE PARK
                              OFFICE BUILDING LEASE

36.  PARKING AREAS

     (a) Landlord shall provide, operate and maintain the Parking Areas shown on
Exhibit B  attached  hereto.  The manner in which such  Parking  areas  shall be
maintained and operated and the expenditures for maintenance and operation shall
be at the sole  discretion of Landlord,  and the use of such Parking Areas shall
be subject to such  reasonable  regulations  and changes as Landlord  shall make
from  time to time,  including,  without  limitation,  the  right to  close,  if
necessary,  all or any  portion of such areas or areas to such  extent as may be
legally  sufficient in the opinion of Landlord's counsel to prevent a dedication
thereof or the accrual of rights of any person or of the public therein.

     (b) Tenant  agrees that it shall  require its  employees not to utilize any
portion of the Parking Areas other than that designated by Landlord as "Employee
Parking."

     (c) Landlord reserves the right to change the Parking Areas and the parking
layout or to relocate the same from time to time.

     (d) Any employee  parking  provided  will be  available  for use on a first
come, first serve basis in common with other tenants.  Any covered parking which
Landlord may agree to provide  shall be on  designated  but not reserved  basis.
Landlord may assess  reasonable  charges for any parking which is provided which
charges shall be payable in addition to rent.

     (e)  Failure  of Tenant to pay any of the  charges  as in this  Article  36
required to be paid shall  constitute  a default  under the terms hereof in like
manner as failure to pay rental when due.

     (f)  Nothing  contained  in this  Article  36 shall  be  deemed  to  create
liability  upon  Landlord  for any  damage to motor  vehicles  of  customers  or
employees or for loss of property from within such motor vehicles.

37.  EXAMINATION OF LEASE

     Submission of this  instrument for  examination or signature by Tenant does
not constitute a reservation of or option for Lease,  and it is not effective as
a Lease or  otherwise  until  execution  by and  delivery to both  Landlord  and
Tenant.

38.  TIME

     Time is of the essence with respect to the  performance of every  provision
of this Lease in which time or performance is a factor.

39.  PRIOR AGREEMENTS; AMENDMENTS

     This Lease  contains  all of the  agreements  of the  parties  hereto  with
respect to any matter covered or mentioned in this Lease, and no prior agreement
or  understanding  pertaining  to any such  matter  shall be  effective  for any
purpose.  No  provision  of this  Lease may be  amended or added to except by an
agreement in writing signed by the parties hereto or their respective successors
in interest.

40.  SEPARABILITY

     Any  provision  of this Lease  which  shall  prove to be  invalid,  void or
illegal in no way affects,  impairs or invalidates any other  provision  hereof,
and such other provisions shall remain in full force and effect.

41.  RECORDING

     Neither  Landlord  nor  Tenant  shall  record  this  Lease or a short  form
memorandum thereof.

42.  LIMITATION ON LIABILITY

     In  consideration  of the  benefits  accruing  hereunder,  Tenant  and  all
successors  and assigns  covenant and agree that,  in the event of any actual or
alleged failure, breach or default hereunder by Landlord:

          (a)  The  sole  and  exclusive  remedy  shall  be  against  Landlord's
               interest in the Project;

          (b)  No partner or shareholder of Landlord shall be sued or named as a
               party in any suit or action (except as may be necessary to secure
               jurisdiction);

          (c)  No  service  of  process  shall be made  against  any  partner or
               shareholder  of Landlord  (except as may be  necessary  to secure
               jurisdiction);

          (d)  No partner or shareholder of Landlord shall be required to answer
               or otherwise plead to any service of process;

          (e)  No judgment will be taken against any partner or  shareholder  of
               Landlord;

          (f)  Any judgment taken against any partner or shareholder of Landlord
               may be vacated and set aside at any time nunc pro tunc;

          (g)  No writ of  execution  will ever be levied  against the assets of
               any partner or shareholder of Landlord;

          (h)  These covenants and agreements are  enforceable  both by Landlord
               and also by any partner or shareholder of Landlord.

Tenant  agrees that each of the  foregoing  covenants  and  agreements  shall be
applicable to any covenant or agreement either expressly contained in this Lease
or imposed by statute or at common law.

43.  CONSENT OF LANDLORD AND TENANT

     In the event of the  failure of  Landlord  or Tenant to give any consent or
approval required herein, if it is either provided herein or held to be that any
such  consent or approval  shall not be  unreasonably  withheld or delayed,  the
requesint party shall be entitled to seek specific  performance at law and shall
have such other remedies as are reserved to it under this Lease, but in no event
shall  Landlord  or Tenant be  responsible  for  damages to anyone else for such
failure to give consent or approval.

                                       12
<PAGE>

                        SCOTTSDALE EXECUTIVE OFFICE PARK
                              OFFICE BUILDING LEASE

44.  QUIET ENJOYMENT

     Landlord  represents  and warrants  that it has full right and authority to
enter into this Lease and that Tenant,  while  paying the rental and  performing
its other covenants and agreements  contained in this Lease, shall peaceable and
quietly have,  hold and enjoy the Premises for the Term without  hindrance  from
Landlord  subject to the terms and provisions of this Lease.  Landlord shall not
be liable for any interference or disturbance by other tenants or third persons,
nor shall Tenant be released from any of the  obligations  of this Lease because
of such interference or disturbance.

45.  OPTION TO EXTEND

     (a)  Tenant  shall  have and is hereby  granted  an  option  to extend  the
original Term for one (1) additional three (3) year period to begin  immediately
upon the  expiration  of the original Term (without the necessity of executing a
new lease therefor) and to run successively  thereafter and upon the same terms,
provisions  and  conditions  as contained  in this Lease,  except for the rental
provisions  hereinafter  set forth,  and  except  there  shall be no  additional
options to extend; provided, however, Tenant's right to exercise any such option
to extend  hereunder  shall be subject to Tenant not ever having been,  nor then
be, in  default  of  performing  any of  Tenant's  obligations  under the Lease,
including  but not limited to timely  paying all rental  charges  and  Operating
Expenses.

     (b) The Annual Basic Rent for the extension  periods shall be set to market
rates by Landlord,  subject,  however,  to other  adjustments  thereto as may be
specified elsewhere in the Lease.

     (c)  Notice of  exercise  of the  option to extend  shall be in  writing to
Landlord  and shall be given not more than  thirteen  (13)  months nor less than
twelve (12) months prior to the  expiration of the original Term (the  "Exercise
Period").  Tenant expressly  acknowledges and agrees that time is of the essence
with respect to the exercise of the option to extend and that notice of exercise
of the option (i) given  prior to the  Exercise  Period is, at  Landlord's  sole
option,  voidable  by Landlord by notice  thereof  given to Tenant  prior to the
Exercise  Period (and if voided by Landlord  may, at Tenant's  sole  option,  be
revived by another  notice of exercise of the option given by Tenant  during the
Exercise  Period)  but if (ii) given after the  Exercise  Period is void and the
option  cannot  thereafter  be revived or  reinstated  except  with the  written
consent  of  Landlord  which  Landlord  may  withhold  in its sole and  absolute
discretion.

46.  TENANT'S STATUS REPRESENTATION

     Tenant hereby  represents  and warrants to Landlord  that:  (i) Tenant is a
duly  formed,  validly  existing  corporation,  partnership,  limited  liability
company,  trust or other such legal entity and is a duly  authorized  to conduct
business  in the state of  Arizona,  and (ii)  Tenant is not now  subject to the
jurisdiction  of any bankruptcy  court and is not planing to file for protection
under any chapter of the Federal bankruptcy code.

47.  INTENTIONALLY OMITTED.

48.  SHARED TELECOMMUNICATIONS

     If Exhibit E is attached  hereto,  then Tenant has  contracted  for certain
Shared Tenant Telecommunications  Services all as more particularly provided for
therein  and all in  accordance  with the terms and  conditions  thereof.  It is
acknowledged,  understood  and agreed that the provider of such  Services is not
acting as the  agent of  Landlord  and  Tenant  shall  have no claim or cause of
action against Landlord for any breach of any such contract for Services.

49.  HEALTH CLUB (Fitness Center)

     By signing  this Lease,  Tenant  acknowledges  that it has read  Exhibit F,
attached hereto, and hereby agrees to the terms and conditions stated therein.

50.  SIGNAGE

     Tenant  will  be  identified  with  a  building  standard  listing  on  the
Building's lobby directory and on the entry door to the Premises.

     IN WITNESS WHEREOF,  the parties have executed this Lease as of the day and
year first above written.

TENANT:                         AEGIS ASSESSMENTS, INC.,
                                a Delaware corporation

                                By: /s/ Richard C. Reincke
                                    ----------------------
                                        Richard C. Reincke
                                        Its Chief  Operating Officer

                                       13
<PAGE>

                        SCOTTSDALE EXECUTIVE OFFICE PARK
                              OFFICE BUILDING LEASE

                    (SIGNATURES CONTINUED ON FOLLOWING PAGE)

LANDLORD:               GAINEY RANCH FINANCIAL LIMITED PARTNERSHIP, L.L.P.,
                        a Delaware limited liability partnership

                        By:     GAINEY RANCH FINANCIAL, L.C.,
                                An Arizona limited liability company, its
                                general partner

                                By: /s/ Dayton W. Adams, Jr.
                                    ------------------------
                                    Dayton W. Adams, Jr.
                                    Its Managing member

EXHIBITS ATTACHED:
------------------

 Exhibit A         Space Plan Dated January 24, 2004
 Exhibit B         Site Plan of Building, Parking Area and Common Areas
 Exhibit C         Tenant Improvements
 Exhibit D         Intentionally omitted
 Exhibit E         Shared Telecommunications Agreement
 Exhibit F         Health Club
 Exhibit G         Intentionally omitted
 Exhibit H         Standards For Utilities And Services
 Exhibit I         Rules and Regulations

                                       14A
<PAGE>

                                   Exhibit A

OFFICE
11-8 x 14-4
|306|

OFFICE
11-8 x 14-4
|305|

OFFICE
9-3 x 14-8
|304|

OFFICE
10 x 14-8
|303|

OFFICE
+ 10-2 x 23-8
|302|

OFFICE
14-3 x 18-0
|307|

OFFICE
10-7 x 14-6
|308|

OFFICE
10-7 x 14-6
|309|

RECEPTION
+ 16-6 X 12
- |300|

CONFERENCE
11-9 X 17-4
|301|

AEGIS ASSESMENTS - SPACE PLAN #1
SCOTTSDALE EXECUTIVE OFFICE PARK I                                  SUITE D-363
-------------------------------------------------------------------------------
COX.JAMES ARCHITECTS                                                  2,647 RSF

KEYNOTES:

1.   NEW BUILDING STANDARD CEILING HEIGHT PARTITION, TYP.

2.   NEW GYP. BD. LOW WALL (R) 42" A.F.F. WITH LOW-WALL  STIFFENERS (R) 48" O.C.
     MAX. PROVIDE P.LAM. COUNTERTOP(R) 30' A.F.F. x 24' DEEP.

3.   INFILL WALL AT REMOVED DOOR - MATCH CORRIDOR WALL CONSTRUCTION.

4.   REMOVE ITEMS SHOWN DASHED ON PLAN, TYP.

5.   NEW 1'-8" WIDE CLOSET DOOR AND FRAME.

6.   REMOVE BLINDS IN OFFICE 306 AND RETURN TO BUILDING MANAGEMENT.

GENERAL NOTES:

A.   PROVIDE  BUILDING  STANDARD  CARPET  AND  PAINT  THROUGHOUT  SUITE,  UNLESS
     OTHERWISE NOTED.

B.   PROVIDE NEW  BUILDING  STANDARD  CEILING  TILE  THROUGHOUT  SUITE.  GRID TO
     REMAIN.

C.   ALL DOORS SHALL BE REPLACED WITH NEW OR RELOCATED  3'-0' BUILDING  STANDARD
     DOORS.

D.   REPLACE ALL LIGHT FIXTURES WITH NEW 2x4 PARABOLIC LENS LIGHT FIXTURE.

                                      14B
<PAGE>

                        SCOTTSDALE EXECUTIVE OFFICE PARK
                              OFFICE BUILDING LEASE
                                    EXHIBIT B

                                    Site Plan

                                       15
<PAGE>

                                    EXHIBIT C

                    TENANT IMPROVEMENTS - BUILDING STANDARDS

     The following building standard items of work shall be provided by Landlord
as set forth on Exhibit A of the Lease, as a condition of the Lease. Any item of
work or  quantity  of work in excess of that  stated  below shall be at Tenant's
expense  as well as the  necessary  architectural  fees,  permits,  contractor's
overhead and profit required to execute the excess work:

     1.   Tenant Partitions:
          ------------------

          One lineal foot of Landlord's  building standard ceiling high dry wall
          partition  consisting  of 2 1/2 inch  metal stud with one layer of 5/8
          inch thick sheetrock on each side of studs for every 12 square feet of
          net rentable  area.  Tenant party walls and corridor walls are counted
          as one-half. Doors are not deducted.

     2.   Doors and Hardware
          ------------------

          A. Entry Doors.  Full height suite entry door,  3'0" wide,  solid core
          cherry door. One (1) door for each Tenant up to 3,000 square feet. Two
          (2) doors for any Tenant over 3,000  square feet to 5,000 square feet.
          Three (3) doors for any Tenant in excess of 5,000 square feet.

          B. Interior Doors.  Full height interior office doors, 3'0" wide solid
          core, three (3) doors for each one thousand (1,000) square feet of net
          rentable area.

          C. Lock Sets and Locks. Will be supplied and two keys per Tenant,  per
          each main entry door.

     3.   Floor Coverings
          ---------------

          Building standard  carpeting in all areas of Tenant's demised premises
          as designated  by Tenant from  Landlord  samples with no more than one
          color  throughout  the Premises.  Vinyl asbestos floor covering in all
          noncarpeted  areas  including  rubber base (cove or straight  edge) in
          colors  selected by Tenant from a color range and type as specified by
          Landlord.

     4.   Window Coverings
          ----------------

          Mini-blinds  on all  exterior  office  windows  in  color  and type as
          selected by Landlord.

     5.   Wall Coverings
          --------------

          Landlord  will paint such  walls,  ceiling-high  partitions,  columns,
          peripheral  walls or enclosures,  doors and door bucks.  Such painting
          shall consist of standard  preparation,  prime and finish colors to be
          selected by Tenant from  building  standard  color chart with not more
          than two color selections in any room or open area.

     6.   Ceiling
          -------

          Landlord will supply and install a 2' x 2' acoustical  lay in fissured
          perforated ceiling. The suspended ceiling height will be approximately
          8'6" throughout.

     7.   Electric Service
          ----------------

          A.   Wiring.  Landlord will supply and install  facilities  sufficient
               for three watts per square foot of Net  Rentable  Area  including
               lighting.

          B.   Lighting  Fixtures.  Landlord  will  supply  and  install 2' x 4'
               parabolic  fluorescent  lighting  fixtures  in the  amount of one
               fixture for every 85 square feet of ceiling  area.  Lamps will be
               furnished and installed by Landlord.

          C.   Electrical  Outlets.  Landlord will supply duplex  receptacles in
               the amount of one receptacle for each 150 square feet of rentable
               area. Such duplex receptacle will be located in the partitions at
               the building standard mounting height.

          D.   Electrical  Switches.  Landlord  will supply and install a single
               pole wall switch in the amount of one for each 250 square feet or
               as required by code.  These  switches  will be  installed  in the
               building  standard  partitions at the building  standard mounting
               height.

<PAGE>

          E.   Telephone  Outlets.  Landlord  will supply and install  telephone
               outlets.  One outlet for each 200 square feet of  rentable  area.
               Such telephone  outlets will be located in the building  standard
               mounting  height.  Not  included  is any  wiring  of any  type or
               outlets  or  conduit  for   separate   intercom   systems,   call
               directories,   or   telephone   outlets,   home   run   conduits,
               switch-board conduits or any similar installation.

     8.   Heating, Ventilating and Air Conditioning
          -----------------------------------------

          Landlord will install a building standard system which provides a year
          around heating and air conditioning system including one ducted supply
          distribution  and one return  air  grille for each 150 square  feet of
          rentable area. Separate controlled zone thermostats.

     9.   Graphics
          --------

          One Tenant  identification  and suite number sign shall be provided by
          Landlord at one entry door. One building directory will be provided by
          Landlord, (all graphics to be standard throughout the building).

     10.  Sprinklers
          ----------

          The  entire  building  will be  sprinklered  in  accordance  with  all
          applicable codes.

<PAGE>

                                    EXHIBIT D

                              Intentionally Omitted

<PAGE>

                                    Exhibit E

                               TELECOMMUNICATIONS

"This Lease is entirely  separate and distinct from and  independent  of any and
all agreements that Tenant may at any time enter into with Shared  Technologies,
Inc. ("STI"), a provider of shared tenants services,  which include, but are not
limited to,  telecommunications and office automation services ("STI Services").
Tenant  acknowledges  that Landlord has no obligation of any type concerning the
provision of STI Services,  and agrees that any cessation or interruption of STI
Services  or any other act or neglect by STI shall not  constitute  a default or
construction eviction by Landlord.

Tenant agrees to hold harmless  Landlord,  its partners,  employees,  agents and
assigns from any claim  Tenant may have arising in any way out of the  provision
(or lack thereof) of telephone  services or any other STI Services  which Tenant
has contracted to receive from STI.

In no event shall  Landlord be liable to Tenant for  incidental,  consequential,
indirect or special  damages  (including lost profits) which may rise in any way
out of a claim concerning STI Services."

<PAGE>

                                    EXHIBIT F
                        SCOTTSDALE EXECUTIVE OFFICE PARK

                                 FITNESS CENTER

Landlord has  furnished  and  equipped  Suite F-115 in the Building as a fitness
center.  With regard to said fitness center,  it is  acknowledged  and agreed as
follows:

     A.   Landlord may at any time,  without prior written  notice,  discontinue
          providing  such  fitness  center   facilities   without  liability  or
          obligation of any kind to Tenant or to any members.  Landlord also has
          the  right  from  time to time  to  determine  and  change,  alter  or
          eliminate the type of equipment which will be available.

          Landlord  may at any  time,  and from  time to time  issue  rules  and
          regulations  concerning  the use and  enjoyment of the fitness  center
          facilities  (including  but not  limited to the days and hours  during
          which the  fitness  center  will be  available  to  members),  and all
          members  agree  to  conform  to  and  abide  by  all  such  rules  and
          regulations. Violation of any such rules and regulations by any member
          shall entitle Landlord to cancel said membership.

     B.   The fitness  center  facilities  are being  provided by Landlord,  and
          shall be used by tenants, with the express understanding and agreement
          that  Landlord  shall not be liable to Tenant,  or its  employees,  or
          guest for any personal injury  suffered by any Tenant,  its employees,
          or guest,  arising  out of said  Tenant,  employee  or guest's use and
          enjoyment of the  facilities.  Each Tenant,  its  employees,  or guest
          shall use the facilities at their own risk.

     C.   Tenant and all users agree to  indemnify  and hold  Landlord  harmless
          from and against any and all  claims,  liabilities,  damages and costs
          (including  attorneys'  fees) arising out of their (or their  guest's)
          use and enjoyment of the fitness center facilities.

     D.   Tenant agrees to indemnify and hold Landlord harmless from and against
          any  and  all  claims,   liabilities,   damages  and  cost  (including
          attorneys'  fees)  arising out of the use and enjoyment of the fitness
          center  facilities  by (i) any user of the  fitness  center  who is an
          employee,  agent,  officer or servant of Tenant, and (ii) any guest of
          any such tenant or its employees.

     E.   The comprehensive  public liability insurance required to be purchased
          by Tenant  pursuant  to Article 16 of this  Lease  shall  specifically
          insure the performance by Tenant of the indemnity  agreement set forth
          in this Exhibit.

<PAGE>

                                    EXHIBIT G

                              Intentionally Omitted

<PAGE>

                                    EXHIBIT H

                      STANDARDS FOR UTILITIES AND SERVICES

     The following Standards for Utilities and Services are in effect.  Landlord
reserves  the right to adopt  modifications  and  additions  hereto.  As long as
Tenant  is not  in  default  under  any of  the  terms,  covenants,  conditions,
provisions or agreements of this Lease, Landlord shall:

1.   Provide non-attended automatic elevator facilities Monday through Saturday,
     except holidays, from 7:00 AM to 7:00 PM.

2.   On Monday through Friday,  except holidays,  from 7:00 AM to 7:00 PM and on
     Saturday  from  7:00 AM to 1:00 PM (and at  other  times  for a  reasonable
     additional  charge to be fixed by  Landlord),  ventilate  the  Premises and
     furnish  heat or air  conditioning  on such  days  and  hours,  when in the
     judgment of Landlord it may be required  for the  comfortable  occupancy of
     the Premises. The air conditioning system achieves maximum cooling when the
     window  coverings are closed.  Landlord shall not be  responsible  for room
     temperatures  if Tenant does not keep all window  coverings in the premises
     closed  whenever  the system is in  operation.  Tenant  agrees to cooperate
     fully at all  times  with  Landlord,  and to abide by all  regulations  and
     requirements  which Landlord may prescribe for the proper  functioning  and
     protection of said air  conditioning  system.  Tenant agrees not to connect
     any apparatus,  device  conduit,  or pipe to the building,  chilled and hot
     water air  conditioning  supply lines.  Tenant further agrees that neighbor
     Tenant  nor  its  servants,   employees,  agents,  visitors,  licensees  or
     contractors shall at any time enter mechanical  installations or facilities
     of the Building or adjust,  tamper  with,  touch or otherwise in any manner
     affect said installations or facilities.

3.   The Landlord shall furnish to the Premises, during the usual business hours
     on business  days,  electric  current as required by the Building  standard
     office  lighting  fractional  horsepower  office  business  machines in the
     amount of approximately three (3) watts per square foot. The Tenant agrees,
     should its electrical  installation or electrical  consumption be in excess
     of the  aforesaid  quantity or extend  beyond  normal  business  hours,  to
     reimburse  Landlord  monthly  for  the  measured  or  reasonably  estimated
     consumption  at the  terms,  classifications  and rates  charged to similar
     consumers  by said public  utility  serving the  neighborhood  in which the
     Building is located. If a separate meter is not installed at Tenant's cost,
     such excess cost will be established by an estimate agreed upon by Landlord
     and  Tenant,  and if the  parties  fail  to  agree,  as  established  by an
     independent  licensed  engineer.  Tenant agrees not to use any apparatus or
     device in or upon, or about the Premises  which may in any way increase the
     amount of such services usually furnished or supplied to said Premises, and
     Tenant  further  agrees not to connect any  apparatus or device with wires,
     conduits or pipes, or other means by which such services are supplied,  for
     the purpose of using additional or unusual amounts of such services without
     consent of  Landlord.  If such  consent is granted,  Landlord  reserves the
     right  to  install  at  Tenant's   expense   such   supplemental   heating,
     ventilation,  and air conditioning  facilities as are deemed  reasonable by
     Landlord.  Should Tenant use the same to excess, the refusal on the part of
     Tenant to pay upon demand of Landlord  the amount  established  by Landlord
     for such excess charge shall  constitute a breach of the  obligation to pay
     rent under  this Lease and shall  entitle  Landlord  to the rights  therein
     granted for such a breach.  At all times  Tenant's use of electric  current
     shall  never  exceed the  capacity  of the  feeders to the  Building or the
     risers or wiring installation and Tenant shall not install or use or permit
     the  installation  or use of any  computer or  electronic  data  processing
     equipment in the Premises without the prior written consent of Landlord.

4.   Water will be available in public areas for drinking and lavatory  purposes
     only,  but if Tenant  requires,  uses or consumes  water for any purpose in
     addition to ordinary drinking and -lavatory purposes - of which fact Tenant
     constitutes  Landlord  to be the sole judge - Landlord  may install a water
     meter and thereby  measure  Tenant's  water  consumption  for all purposes.
     Tenant  shall  pay  Landlord  for the cost of the meter and the cost of the
     installation  thereof and  throughout  the  duration of Tenant's  occupancy
     Tenant  shall keep said meter and  installation  equipment  in good working
     order and  repair at  Tenant's  own cost and  expense,  in default of which
     Landlord  may cause meter and  equipment  to be  replaced  or repaired  and
     collect  the cost  thereof  from  Tenant.  Tenant  agrees  to pay for water
     consumed,  as shown on said meter,  as and when bills are rendered,  and on
     default in making such  payment,  Landlord may pay such charges and collect
     the same from Tenant. Any such costs or expenses incurred, or payments made
     by Landlord for any reasons or purposes herein above stated shall be deemed
     to be  additional  rent  payable by Tenant and  collectible  by Landlord as
     such.

5.   Provide  janitor  service  to the  Premises,  provided  the  same  are used
     exclusively as offices,  and are kept reasonably in order by Tenant, and if
     to be kept clean by Tenant,  no one other than persons approved by Landlord
     shall be permitted to enter the Premises for such purposes. If the Premises
     are not used exclusively as offices,  they shall be kept clean an din order
     by Tenant, at Tenant's expense, and to the satisfaction of Landlord, and by
     persons  approved by  Landlord.  Tenant  shall pay to Landlord  the cost of
     removal of any of Tenant's refuse and rubbish,  to the extent that the same
     exceeds  the  refuse  and  rubbish  usually  attendant  upon the use of the
     Premises as offices.

<PAGE>

     Tenant  shall  not  cause  any  unnecessary  labor by  reason  of  Tenant's
     carelessness  or  indifference  in  the  preservation  of  good  order  and
     cleanliness.  Landlord shall in no way be responsible to any Tenant for any
     loss of property on the Premises, however occurring, or for any damage done
     to the  effects of any Tenant by the  janitor or any other  employee or any
     other person.  Janitor service shall include  ordinary dusting and cleaning
     by the  janitor  assigned  to such work and shall not  include  cleaning of
     carpeting or rugs, except normal vacuuming, or moving of furniture or other
     special services.

6.   Landlord  reserves the right  to,stop  service of the  elevator,  plumbing,
     ventilating,  air conditioning  and electric  systems,  when necessary,  by
     reason  of  accident  or   emergency  or  for   repairs,   alterations   or
     improvements,  in the  judgment of Landlord  desirable  or  necessary to be
     made,  until said  repairs,  alterations  or  improvements  shall have been
     completed,  and shall  further  have no  responsibility  or  liability  for
     failure  to  supply  elevator  facilities,   plumbing,   ventilating,   air
     conditioning or electric service, when prevented from so doing by strike or
     accident or by cause beyond the Landlord's  reasonable  control or by laws,
     rules, orders, ordinances,  directions,  regulations or requirements of any
     federal,  state,  county or  municipal  authority or failure of gas, oil or
     other  agreements  of this  Lease,  or to perform  any act or thing for the
     benefit of Tenant,  shall not be deemed  breached  if Landlord is unable to
     furnish or perform  the same by virtue of a strike or labor  trouble or any
     other cause whatsoever beyond Landlord's control.

<PAGE>

                                    EXHIBIT I

                              RULES AND REGULATIONS

1.   The  sidewalks,   entrances,   passages,  courts,  elevators,   vestibules,
     stairways, corridors or halls shall not be obstructed or used by Tenant for
     any purpose other than ingress and egress.

2.   No awnings or other  projection  shall be attached to the outside  walls of
     the Building.  No curtains,  blinds, shades or screens shall be attached to
     or hung in, or used in connection  with, any window or door of the Premises
     other than  Landlord's  standard  window  coverings.  All electric  ceiling
     fixtures hung in offices or spaces along the perimeter of the Building must
     be  fluorescent,  of a quality,  type,  design and. bulb color  approved by
     landlord.  Neither the interior nor exterior of any windows shall be coated
     or  otherwise  sunscreened  without  the  express  written  consent  of the
     Landlord.

3.   No sign, advertisement or notice shall be exhibited,  painted or affixed by
     Tenant on any part of the Premises or the Building  without  prior  written
     consent of the Landlord.  In the event of the violation of the foregoing by
     any Tenant, Landlord may remove same without any liability,  and may charge
     the expense  incurred in such  removal to the Tenant  violating  this rule.
     Interior signs on doors and directory tablet shall be inscribed, painted or
     affixed for each Tenant by the Landlord at the expense of such Tenant,  and
     shall  be of a size,  color  and  style  acceptable  to the  Landlord.  The
     directory  tablet will be provided  exclusively for the display of the name
     and location of Tenants only and Landlord reserves the right to exclude any
     other names  therefrom.  Nothing may be placed on the  exterior of corridor
     walls or corridor doors other than Landlord's standard lettering.

4.   The sashes, sash doors, skylights, Windows, and doors that reflect or admit
     light  and air into  halls,  passageways  or  other  public  places  in the
     Building  shall not be covered or obstructed  by any Tenant,  nor shall any
     bottles, parcels or other articles be placed on the window sills.

5.   The water and wash closets and other  plumbing  fixtures  shall not be used
     for any purpose  other than those for which they were  constructed,  and no
     sweepings,  rubbish,  rags or other substances shall be thrown therein. All
     damages  resulting  from any misuse of the  fixtures  shall be borne by the
     Tenant who, or whose  servants,  employees,  agents,  visitors or licensees
     shall have caused the same.

6.   No Tenant shall mark,  paint,  drill into, or in any way deface any part of
     the Premises or the building.  No boring,  cutting or stringing of wires or
     laying of linoleum or other  similar  floor  coverings  shall be permitted,
     except with the prior  written  consent of the Landlord and as the Landlord
     may direct.  No Tenant shall lay  linoleum,  tile,  carpet or other similar
     floor  covering  so that the  same  shall be  affixed  to the  floor of the
     Premises in any manner except as approved by the  Landlord.  The expense of
     repairing any damage  resulting  from  violation of this rule or removal of
     any  floor  covering  shall  be borne by the  Tenant  by whom,  or by whose
     contractors, employees, or invitees, the damage shall have been caused.

7.   No bicycles,  vehicles,  birds or animals of any kind shall be brought into
     or kept in or about the Premises or Building,  and no cooking shall be done
     or permitted by any Tenant on the Premises,  except that in the preparation
     of coffee,  tea,  hot  chocolate  and  similar  items for Tenants and their
     employees or guests shall be permitted provided power shall not exceed that
     amount which can be provided by a 30 amp circuit.  No Tenant shall cause or
     permit any unusual or  objectionable  odors to be produced or permeate  the
     Premises.

8.   The Premises shall not be used for  manufacturing  or storage of materials,
     such as urea formaldehyde foam insulation,  transformers or other equipment
     which  contain  dialectic  fluid  containing  PCB's,  any  other  chemical,
     material or substance exposure to which is prohibited, limited or regulated
     by any  government  authority  or which may pose a hazard to the health and
     safety of the  occupants  of the  premises,  the owners of the  property or
     adjacent property owners.  Tenant agrees, upon request of the Landlord,  to
     submit  to an  environmental  inspection  of  the  premises  during  normal
     business  hours in  order  to  conduct  necessary  inspections,  test or to
     provide access to Landlord's  agents and  consultants for the conducting of
     such tests.

9.   No Tenant  shall make,  or permit to be made,  any  unseemly or  disturbing
     noises or  disturb  of  interfere  with  occupants  of this or  neighboring
     buildings or premises or those  having  business  with them,  whether by th
     euse of any musical  instrument,  radio  phonograph,  unusual noise, or any
     other way. No Tenant shall throw anything out of doors, windows or skylight
     or down the passageway.

10.  No Tenant nor any of  Tenant's  servants,  employees,  agents,  visitors or
     licensees,  shall  at  any  time  bring  or  keep  upon  the  Premises  any
     inflammable, combustible or explosive fluid, chemical or substance.

11.  No  additional  locks or bolts of any kind shall be placed  upon any of the
     doors or windows by any

<PAGE>

     Tenant,  nor  shall  changes  be made in  existing  locks or the  mechanism
     thereof. Each Tenant must, upon the termination of his tenancy,  restore to
     the Landlord all keys or stores, offices and toilet rooms, either furnished
     to, or  otherwise  procured by, such Tenant and in the event of the loss of
     any keys so  furnished,  such Tenant  shall pay to the Landlord the cost of
     replacing the same or of changing the lock or locks opened by such lost key
     if Landlord shall deem it necessary to make such change.

12.  All removals, or the carrying in or out of any safes,  freight,  furniture,
     or bulky matter of any  description  must take place during the hours which
     the Landlord may determine  from time to time. The moving of safes or other
     fixtures or bulky matter of any kind must be made upon  previous  notice to
     the  superintendent  of the  Building  and under his  supervision,  and the
     persons  employed  by any  Tenant for such work must be  acceptable  to the
     Landlord.  The Landlord reserves the right to inspect all safes, freight or
     other bulky  articles to be brought  into the  building and to exclude from
     the Building all safes,  freight or other bulky  articles which violate any
     of these  Rules  and  Regulations  or the  Lease of which  these  Rules and
     Regulations  are a part.  The Landlord  reserves the right to prescribe the
     weight and  position  of all safes,  which must be placed on upon  supports
     approved by Landlord to distribute weight.

13.  No Tenant shall purchase spring water, ice, towel, janitorial, maintenance,
     or employ any person or contractor  not employed or approved by Landlord to
     perform window washing, cleaning,  decorating,  repair or other work in the
     Premises,  or other like service,  from any company or persons not approved
     by  the  Landlord.   Upon  completion  of  any  improvements,   repairs  or
     maintenance by Tenant as permitted by Landlord or required under the Lease,
     Tenant shall deliver to, Landlord,  if payment is made directly to Tenant's
     contractors,  evidence  of  payment  and  waivers  of all liens for  labor,
     service or materials,  and defend and hold Lessor  harmless from all costs,
     damages,  liens and expenses  related  thereto.  If Tenant desires  signal,
     communication,  alarm or other utility or service  connection  installed or
     changed, the same shall be made at the expense of Tenant, with approval and
     under  direction of Landlord.  Landlord  shall have no  obligation  for the
     labor and materials furnished to Tenant in connection with the construction
     of any  improvements  upon the lease  premises  and Tenant is not acting as
     Landlord's agent or personal  representative  in any respect  whatsoever in
     connection  with the ordering or contracting  for the  construction of such
     improvements.

14.  Landlord  shall have the right to prohibit  any  advertising  by any Tenant
     which,  in  Landlord's  opinion,  tends to  impair  the  reputation  of the
     Building or its  desirability as an office building and upon written notice
     from   Landlord  any  Tenant  shall  refrain  from  or   discontinue   such
     advertising.

15.  The Landlord  reserves  the right to exclude from the Building  between the
     hours of 7:00 PM and 7:00 AM and at all hours on Sundays and legal holidays
     all  persons  who have not  received  clearance  as a result  of a  written
     request from Tenant or who do not present a pass to the Building  signed by
     the  Landlord.  The Landlord will furnish  passes or at Landlord's  option,
     clearances,  to persons for whom any Tenant  requests  the same in writing.
     Each  Tenant  shall be  responsible  for all  persons  for whom he requests
     passes or  clearances  and shall be liable to the  Landlord for all acts of
     such persons. Landlord shall in no case be liable for damages for any error
     with  regard to the  admission  to or  exclusion  from the  Building of any
     person.  In case of an  invasion,  mob  riot,  public  excitement  or other
     circumstances  rendering  such  action  advisable  in  Landlord's  opinion,
     Landlord  reserves the right to prevent  access to the Building  during the
     continuance  of the same by closing the doors or otherwise,  for the safety
     of the Tenants and the  protection  of the Building and the property in the
     Building.

16.  Any persons employed by any Tenant to do janitor work, shall,  while in the
     Building and outside of the  Premises,  be subject to and under the control
     and direction of the superintendent of the Building (but not as an agent or
     servant of said  superintendent  or of the  Landlord),  and Tenant shall be
     responsible  for all acts of such persons.  No such person shall be allowed
     in the Building after regular Building hours.

17.  All doors opening onto public  corridors shall be kept closed,  except when
     in use for ingress and egress.

18.  The requirements of Tenant will be attended to only upon application to the
     Office of the  Building.  Tenant shall give prompt  notice to the Office of
     the  Building  of any  accidents  to or  defects  in  plumbing,  electrical
     fixtures,  heating apparatus and/or air conditioning  equipment so that the
     same may be attended to properly.

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

20.  All office equipment of any electrical or mechanical nature shall be placed
     by Tenant in the Premises in settings  approved by  Landlord,  to absorb or
     prevent  any  vibration,  noise  or  annoyance.   Tenant  shall  not  waste
     electricity or water and agrees to cooperate  fully with Landlord to assure
     the most effective operation of the Building's heating and air conditioning
     and shall refrain from  attempting  to adjust any controls  other than room
     thermostats installed for Tenant's use.

<PAGE>

     Tenant shall keep windows and public corridor doors closed. For the purpose
     of the Lease of which these Rules and  Regulations  are a part,  the normal
     business  hours and generally  recognized  business days of Tenant shall be
     7:00 AM to 7:00 PM, Monday through Friday,  unless otherwise  determined by
     Landlord in its sole discretion.

21.  No air conditioning  unit, space heater or other similar apparatus shall be
     installed  or used by any Tenant  without the written  consent of Landlord.
     Landlord  will  direct  electricians  as to  where  and how  telephone  and
     telegraph  wires are to be introduced.  No boring or cutting for wires will
     be allowed without the consent of Landlord. The location of telephone, call
     boxes and other office  equipment  affixed to the Premises shall be subject
     to the approval of Landlord.

22.  There  shall  not be used  in any  space,  or in the  public  halls  of the
     Building,  either by any Tenant or others,  any.  hand trucks  except those
     equipped with rubber tires and rubber side guards.

23.  Landlord  shall  have the  right,  exercisable  without  notice or  without
     liability to any Tenant, to change the name and address of the Building.  A
     directory in the Main Lobby of the Building is provided exclusively for the
     display of the name and  location of Tenant  only.  Landlord  reserves  the
     right to exclude any other names  therefrom  and also to make a  reasonable
     charge for each name,  in  addition  to  Tenant's  name,  placed  upon such
     directory at the request of Tenant.

24.  No vending  machine or  machines  of any  description  shall be  installed,
     maintained  or operated  upon the Premises  without the written  consent of
     Landlord.

25.  The scheduling of moves of Tenant's  furniture and equipment into or out of
     the Building is subject to the reasonable discretion of Landlord.  All such
     moves,  as well as any  deliveries  of  goods  or  supplies  to or from the
     Premises shall be by way of the Building's  service elevator.  No passenger
     elevator shall be used for such purpose.

26.  Tenant assumes full  responsibility  for its space from theft,  robbery and
     pilferage,  which  includes  keeping  doors and other means of entry to the
     Premises closed, locked and secured.

27.  Tenant shall not install coat hooks or other  similar  devices on the doors
     of his Premises.

28.  Tenant shall provide chair pads for all desk chairs of the swivel base type
     that are used on carpeted areas.

29.  If the cost to Landlord for cleaning the Premises shall be increased due to
     the installation in the Premises,  at Tenant's request, of any materials or
     finish other than those which are building standards,  Tenant shall pay the
     Landlord an amount equal to such increase in cost.

30.  The driveways and loading zones must be kept free of parked automobiles.

31.  The  Landlord  reserves the right at any time to rescind any one or more of
     these Rules and Regulations,  or to make such other and further  reasonable
     Rules and  Regulations as in the Landlord's  judgment may from time to time
     be necessary for the safety, care and cleanliness of the Premises,  and for
     the preservation of order herein.

32.  The expense of curing any violation of these Rules and  Regulations  caused
     by  a  Tenant  or a  Tenant's  servants,  employees,  agents,  visitors  or
     licensees  shall be borne by such Tenant.  Such Tenant shall also reimburse
     and hold  Landlord  harmless from any loss,  expense or damage  incurred by
     Landlord arising out of any such violation.

33.  Tenant  and/or  its  employees  shall not park in any areas  designated  as
     "visitor" parking.

34.  Failure by Tenant  and/or its employees to adhere to any of these Rules and
     Regulations shall constitute a default under the Tenant's Lease.Exhibit 10.3

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

1. BASIC PROVISIONS ("BASIC PROVISIONS").

     1.1  PARTIES:  This Lease  ("LEASE"),  dated for  reference  purposes  only
10-9-03 , is made by and between 14631-14641 ARMENTA, LLC
--------------------------------------------------------------------------------
                                        ("LESSOR") and AEGIS ASSESSMENTS, INC. .
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

     1.2(a)  PREMISES:  That certain  portion of the Project (as defined below),
including all  improvements  therein or to be provided by Lessor under the terms
of this  Lease,  commonly  known by the street  address of 14635  ARMINTA  ST. ,
located in the City of VAN NUYS , County of LOS ANGELES , State of  CALIFORNIA ,
with zip code 91402 , as outlined on Exhibit A attached hereto  ("PREMISES") and
generally   described  as  (describe   briefly  the  nature  of  the  Premises):
APPROXIMATELY 2500 SQ. FT. AS PART OF A LARGER MULTI-TENANT  INDUSTRIAL BUILDING
OF APPROXIMATELY 15,200 SQ. FT. ZONED M-1

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

     1.2(b) PARKING:  0 (ZERO)  unreserved  vehicle parking spaces  ("UNRESERVED
PARKING SPACES"). (See also Paragraph 2.6.)

     1.3 TERM: 1 (ONE) years and 6 (SIX)  months  ("ORIGINAL  TERM")  commencing
NOVEMBER 1, 2003  ("COMMENCEMENT  DATE") and ending APRIL 30, 2005  ("EXPIRATION
DATE"). (See also Paragraph 3.)

     1.4 EARLY POSSESSION: SEE PARAGRAPH 51 ("EARLY POSSESSION DATE"). (See also
Paragraphs 3.2 and 3.3.)

     1.5 BASE RENT: $2,250.00 per month ("BASE RENT"),  payable on the FIRST day
of each month commencing  NOVEMBER 1, 2003 . (See also Paragraph 4.) if this box
is checked, there are provisions in this Lease for the Base Rent to be adjusted.

     1.6 LESSEE'S SHARE OF COMMON AREA OPERATING EXPENSES: SIXTEEN & FOUR TENTHS
percent (16.4%) ("LESSEE'S SHARE").

     1.7 BASE RENT AND OTHER MONIES PAID UPON EXECUTION:

          (a)  BASE RENT: $ 2,250.00 for the period NOVEMBER 2003 .
          (b)  COMMON AREA OPERATING EXPENSES: $ N/A for the period N/A .
          (c)  SECURITY  DEPOSIT:  $9,000.00  ("SECURITY  DEPOSIT").  (See  also
               Paragraph 5.)
          (d)  OTHER: $N/A for N/A .
          (e)  TOTAL DUE UPON EXECUTION OF THIS LEASE: $11,250.00 .

     1.8 AGREED USE: R&D,  MANUFACTURING AND OFFICES FOR  COMMUNICATION  DEVICES
AND OTHER RELATED LEGAL USES.
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
                                                         (See also Paragraph 8.)

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

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

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

|_|             represents Lessor exclusively ("LESSOR'S BROKER");
   -------------
|_|             represents Lessee exclusively ("LESSEE'S BROKER"); or
   -------------

|X| NAI CAPITAL COMMERCIAL represents both Lessor and Lessee ("DUAL AGENCY").
    ----------------------

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

     1.11  GUARANTOR.  The  obligations of the lessee under this Lease are to be
guaranteed by                            ("GUARANTOR"). (See also Paragraph 37.)
             ----------------------------

     1.12  ADDENDA  AND  EXHIBITS.  Attached  hereto is an  Addendum  or Addenda
consisting of Paragraphs 50 through 52 and Exhibits A through C , all of which
                         --         --              --        --
constitute a part of this Lease.

2.   PREMISES.

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

<PAGE>

     2.2 CONDITION.  Lessor shall deliver that portion of the Premises contained
within the  Building  ("UNIT")  to Lessee  broom clean and free of debris on the
Commencement  Date or the Early Possession Date,  whichever first occurs ("START
DATE"),  and, so long as the required service  contracts  described in Paragraph
7.1(b) below are obtained by Lessee and in effect within  thirty days  following
the Start Date, warrants that the existing electrical, plumbing, fire sprinkler,
lighting,  heating,  ventilating and air conditioning systems ("HVAC"),  loading
doors,  if any,  and all other  such  elements  in the Unit,  other  than  those
constructed  by Lessee,  shall be in good  operating  condition on said data and
that the  structural  elements of the roof,  bearing walls and foundation of the
Unit shall be free of material defects.  If a non-compliance  with such warranty
exists  as of the Start  Date,  or if one of such  systems  or  elements  should
malfunction or fail within the  appropriate  warranty  period,  Lessor shall, as
Lessor's  sole  obligation  with  respect to such  matter,  except as  otherwise
provided in this Lease,  promptly  after  receipt of written  notice from Lessee
setting  forth with  specificity  the nature and extent of such  non-compliance,
malfunction or failure,  rectify same at Lessor's expense.  The warranty periods
shall be as follows: (i) 6 months as to the HVAC systems, and (ii) 30 days as to
the  remaining  systems and other  elements of the Unit. If Lessee does not give
Lessor the required notice within the appropriate warranty period, correction of
any such  non-compliance,  malfunction  or failure  shall be the  obligation  of
Lessee at  Lessee's  sole cost and  expense  (except for the repairs to the fire
sprinkler systems, roof, foundations, and/or bearing walls - see Paragraph 7).

     2.3 COMPLIANCE.  Lessor warrants that the  improvements on the Premises and
the Common Areas comply with the building  codes that were in effect at the time
that each such improvement,  or portion thereof, was constructed,  and also with
all applicable  laws,  covenants or  restrictions  of record,  regulations,  and
ordinances  in  affect  on the  Start  Date  ("APPLICABLE  REQUIREMENTS").  Said
warranty  does not apply to the use to which  Lessee will put the Premises or to
any Alterations or Utility  Installations (as defined in Paragraph 7.3(a).) made
or to be made by Lessee.  NOTE: Lessee is responsible for determining whether or
not the zoning is appropriate for Lessee's  intended use, and acknowledges  that
past uses of the  Premises  may no longer be  allowed.  If the  Premises  do not
comply with said warranty, Lessor shall, except as otherwise provided,  promptly
after receipt of written notice from Lessee setting forth with  specificity  the
nature and extent of such non-compliance,  rectify the same at Lessor's expense.
If Lessee  does not give Lessor  written  notice of a  non-compliance  with this
warranty  within  6  months  following  the  Start  Date,   correction  of  that
non-compliance  shall be the  obligation  of  Lessee at  Lessee's  sole cost and
expense.  If the Applicable  Requirements are hereafter changed so as to require
during  the  term  of  this  Lease  the  construction  of an  addition  to or an
alteration  of the  Unit,  Premises  and/or  Building,  the  remediation  of any
Hazardous Substance,  or the reinforcement or other physical modification of the
Unit, Premises and/or Building ("CAPITAL EXPENDITURE"),  Lessor and Lessee shall
allocate the cost of such work as follows:

     (a) subject to Paragraph  2.3(c) below,  if such Capital  Expenditures  are
required as a result of the specific and unique use of the Premises by Lessee as
compared with uses by tenants in general,  Lessee shall be fully responsible for
the  cost  thereof,  provided,  however,  that if such  Capital  Expenditure  is
required  during the last 2 years of this Lease and the cost  thereof  exceeds 6
months'  Base Rent.  Lessee may  instead  terminate  this  Lease  unless  Lessor
notifies  Lessee,  in  writing,   within  10  days  after  receipt  of  Lessee's
termination  notice that Lessor has  elected to pay the  difference  between the
actual  cost  thereof  and the amount  equal to 6 months'  Base Rent.  If Lessee
elects termination, Lasses shall immediately cease the use of the Premises which
requires  such  Capital   Expenditure  and  deliver  to  Lessor  written  notice
specifying a termination date at least 90 days thereafter. Such termination date
shall,  however,  in no event be  earlier  than the last day that  Lessee  could
legally utilize the Premises without commencing such Capital Expenditure.

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

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

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

                                  Page 2 of 21
<PAGE>

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

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

     (a) Lessee  shall not permit or allow any  vehicles  that  belong to or are
controlled  by Lessee or Lessee's  employees,  suppliers,  shippers,  customers,
contractors  or invitees to be loaded,  unloaded,  or parked in areas other than
those designated by Lessor for such activities.

     (b) Lessee shall not service or store any vehicles in the Common Areas.

     (c) If Lessee permits or allows any of the prohibited  activities described
in this  Paragraph  2.6, then Lessor shall have the right,  without  notice,  in
addition to such other  rights and remedies  that it may have,  to remove or tow
away the  vehicle  involved  and charge the cost to Lessee,  which cost shall be
immediately payable upon demand by Lessor.

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

     2.8  COMMON  AREAS - LESSEE'S  RIGHTS.  Lessor  grants to  Lessee,  for the
benefit or Lessee and its employees, suppliers, shippers, contractors, customers
and invitees,  during the term of this Lease, the non-exclusive right to use, in
common with others  entitled  to such use,  the Common  Areas as they exist from
time to time, subject to any rights,  powers, and privileges  reserved by Lessor
under the terms  hereof  or under  the  terms of any  rules and  regulations  or
restrictions  governing the use of the Project. Under no circumstances shall the
right  herein  granted to use the Common Areas be deemed to include the right to
store any property,  temporarily or permanently,  in the Common Areas.  Any such
storage  shall be  permitted  only by the  prior  written  consent  of Lessor or
Lessor's  designated  agent,  which  consent may be revoked at any time.  In the
event that any  unauthorized  storage  shall  occur,  then Lessor shall have the
right, without notice, in addition to such other rights and remedies that it may
have, to remove the property and charge the cost to Lessee,  which cost shall be
immediately payable upon demand by Lessor.

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

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

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

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

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

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

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

     (f) To do and perform such other acts and make such other changes in, to or
with  respect to the Common  Areas and Project as Lessor may, in ins exercise of
sound business judgment, doom to be appropriate.

3.   TERM.

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

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

     3.3  DELAY  IN  POSSESSION.  Lessor  agrees  to use its  best  commercially
reasonable  efforts  to  deliver  possession  of the  Premises  to Lessee by the
Commencement  Data.  If,  despite  said  efforts,  Lessor is  unable to  deliver
possession as agreed, Lessor shall not be subject to any liability therefor, nor
shall such failure affect the validity of this Lease. Lessee shall not, however,
be  obligated  to pay Rent or perform  its other  obligations  until it receives
possession of the Premises.  If possession is not delivered within 80 days after
the Commencement Date, Lessee may, at its option, by notice in writing within 10
days after

                                  Page 3 of 21
<PAGE>

the end of such 60 day period,  cancel  this  Lease,  in which event the Parties
shall be discharged  from all obligations  hereunder.  If such written notice is
not received by Lessor within said 10 day period, Lessee's right to cancel shall
terminate. Except as otherwise provided, if possession is not tendered to Lessee
by the Start Date and Lessee does not terminate  this Lease,  as aforesaid,  any
period of rent abatement that Lessee would otherwise have enjoyed shall run from
the date of delivery  of  possession  and  continue  for a period  equal to what
Lessee would  otherwise have enjoyed under the terms hereof,  but minus any days
of delay  caused  by the acts or  omissions  of  Lessee.  If  possession  of the
Premises is not  delivered  within 4 months after the  Commencement  Date,  this
Lease shall  terminate  unless other  agreements are reached  between Lessor and
Lessee, in writing.

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

4.   RENT.

     4.1 RENT DEFINED.  All monetary  obligations  of Lessee to Lessor under the
terms of this Lease  (except  for the  Security  Deposit)  are deemed to be rent
("RENT").

     4.2 COMMON AREA OPERATING  EXPENSES.  Lessee shall pay to Lessor during the
term  hereof,  in addition to the Base Rent,  Lessee's  Share (as  specified  in
Paragraph 1.6) of all Common Area Operating  Expenses,  as hereinafter  defined,
during each  calendar  year of the term of this Lease,  in  accordance  with the
following provisions:

     (a) "COMMON AREA  OPERATING  EXPENSES"  are  defined,  for purposes of this
Lease,  as all costs incurred by Lessor  relating to the ownership and operation
of the Project, including, but not limited to, the following:

          (i)  The operation, repair and maintenance, in neat, clean, good order
               and condition, but not the replacement (see subparagraph (e)), of
               the following:

               (aa) The Common  Areas and Common  Area  improvements,  including
                    parking  areas,  loading and unloading  areas,  trash areas,
                    roadways, parkways, walkways,  driveways,  landscaped areas,
                    bumpers,    irrigation   systems,   Common   Area   lighting
                    facilities,  fences and gates,  elevators,  roofs,  and roof
                    drainage systems.

               (bb) Exterior algae and any tenant directories.

               (cc) Any fire sprinkler systems.

          (ii) The cost of water, gas,  electricity and telephone to service the
               Common Areas and any utilities not separately metered.

          (iii)Trash  disposal,  pest  control  services,  property  management,
               security   services,   and  the   costs   of  any   environmental
               inspections.

          (iv) Reserves set aside for maintenance and repair of Common Areas.

          (v)  Any increase  above the Base Real  Property  Taxes (as defined in
               Paragraph 10).

          (vi) Any "Insurance Cost Increase" (as defined in Paragraph 8).

          (vii)Any  deductible   portion  of  an  insured  loss  concerning  the
               Building or the Common Areas.

          (viii) The cost of any  Capital  Expenditure  to the  Building  or the
               Project  not  covered  under  the  provisions  of  Paragraph  2.3
               provided;  however,  that Lessor  shall  allocate the cost of any
               such Capital  Expenditure  over a 12 year period and Lessee shall
               not be required to pay more than Lessee's Share of 1/144th of the
               cost of such Capital Expenditure in any given month.

          (ix) Any other  services  to be  provided  by Lessor  that are  stated
               elsewhere in this Lease to be a Common Area Operating Expense.

     (b) Any Common Area  Operating  Expenses and Real  Property  Taxes that are
specifically  attributable to the Unit, the Building or to any other building in
the  Project or in the  operation,  repair  and  maintenance  thereof,  shall be
allocated  entirely to such Unit,  Building,  or other  building.  However,  any
Common Area Operating Expenses and Real Property Taxes that are not specifically
attributable  to the  Building  or to any other  building  or to the  operation,
repair and maintenance  thereof,  shall be equitably  allocated by Lessor to all
buildings in the Project.

     (c) The inclusion of the improvements, facilities and services set forth in
Subparagraph  4.2(a) shall not be deemed to impose an obligation  upon Lessor to
either have said  improvements or facilities or to provide those services unless
the Project  already has the same,  Lessor  already  provides the  services,  or
Lessor has agreed elsewhere in this Lease to provide the same or some of them.

     (d) Lessee's  share of Common Area  Operating  Expenses shall be payable by
Lessee within 10 days after a reasonably  detailed  statement of actual expanses
is presented to Lessee. At Lessor's option,  however, an amount may be estimated
by Lessor from time to time of Lessee's  share of annual  Common Area  Operating
Expenses  and the same shall be payable  monthly or  quarterly,  as Lessor shall
designate, during each 12 month period of the Lease term, on the same day as the
Base Rent is due hereunder.  Lessor shall deliver to Lessee within 60 days after
the  expiration of each calendar year a reasonably  detailed  statement  showing
Lessee's share of the actual Common Area Operating  Expenses incurred during the
preceding  year. If Lessee's  payment,  under this  Paragraph  4.2(d) during the
preceding  year exceed  Lessee's  Share as indicated on such  statement,  Lessor
shall credit the amount of such  over-payment  against  Lessee's share of Common
Area  Operating  Expenses  next becoming  due. If Lessee's  payments  under this
Paragraph  4.2(d)  during the preceding  year were less than  Lessee's  share as
indicated  on such  statement,  Lessee  shall  pay to Lessor  the  amount of the
deficiency within 10 days after delivery by Lessor to Lessee of the statement.

                                  Page 4 of 21
<PAGE>

     (e) When a capital component such as the roof, foundations,  exterior walls
or a Common Area capital improvement, such as the parking lot paving, elevators,
fences,  etc. requires  replacement,  rather than repair or maintenance,  Lessor
shall, at Lessor's expense,  be responsible for such replacement.  Such expenses
and/or costs ere not Common Area Operating Expenses.

     4.3 PAYMENT. Lessee shall cause payment of Rent to be received by Lessor in
lawful  money of the  United  States,  without  offset or  deduction  (except as
specifically  permitted in this Lease), on or before the day on which it is due.
Rent for any  period  during  the term  hereof  which is for less  than one full
calendar  month shall be prorated  based upon the actual  number of days of said
month.  Payment of Rent shall be made to Lessor at its address  stated herein or
to such  other  persons or place as Lessor  may from time to time  designate  in
writing.  Acceptance  of a payment  which is less than the amount then due shall
not be a waiver of Lessor's  rights to the balance of such Rent,  regardless  of
Lessor's  endorsement  of any check so  stating.  In the event  that any  chock,
draft,  or other  instrument  of payment given by Lessee to Lessor is dishonored
for any reason, Lessee agrees to pay to Lessor the sum of $25.

     5. SECURITY DEPOSIT. Lessee shall deposit with Lessor upon execution hereof
the  Security  Deposit as security  for  Lessee's  faithful  performance  of its
obligations  under this Lease. If Lessee fails to pay Rent, or otherwise Default
under this  Lease,  Lessor may use,  apply or retain all or any  portion of said
Security  Deposit  for the payment of any amount due Lessor or to  reimburse  or
compensate  Lessor for any liability,  expense,  loss or damage which Lessor may
suffer or incur by reason thereof.  If Lessor uses or applies all or any portion
of the  Security  Deposit,  Lessee shall  within 10 days after  written  request
therefor deposit monies with Lessor  sufficient to restore said Security Deposit
to the full amount required by this Lease. If the Base Rent increases during the
term of this Lease,  Lessee  shall,  upon written  request from Lessor,  deposit
additional  monies with Lessor so that the total amount of the Security  Deposit
shall at all times bear the same  proportion to the  Increased  Base Rent as the
Initial Security Deposit bore to the Initial Base Rent. Should the Agreed Use be
amended  to  accommodate  a  material  change  in the  business  of Lessee or to
accommodate a sublessee or assignee, Lessor shall have the right to Increase the
Security Deposit to the extent necessary,  in Lessor's reasonable  judgment,  to
account for any increased wear and tear that the Premises may Suffer as a result
thereof. If a change in control of Lessee occurs during this Lease and following
such  change  the  financial  condition  of Lessee  is, in  Lessor's  reasonable
judgment,  significantly  reduced,  Lessee shall deposit such additional  monies
with  Lessor as shall be  sufficient  to cause the  Security  Deposit to be at a
commercially  reasonable  level  based on such  change in  financial  condition.
Lessor  shall not be required to keep the  Security  Deposit  separate  from its
general  accounts.  Within 14 days after the  expiration or  termination of this
Lease,  if Lessor elects to apply the Security  Deposit only to unpaid Rent, and
otherwise  within 30 days  after the  Premises  have been  vacated  pursuant  to
Paragraph 7.4(c) below. Lessor shall return that portion of the Security Deposit
not  used or  applied  by  Lessor.  No part of the  Security  Deposit  shall  be
considered to be held in trust,  to bear  Interest or to be  prepayment  for any
monies to be paid by Lessee under this Lease.

6.   USE.

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

     6.2 HAZARDOUS SUBSTANCES.

     (a) REPORTABLE  USES:  REQUIRE CONSENT.  The term "HAZARDOUS  SUBSTANCE" as
used in this Lease shall mean any product,  substance,  or waste whose presence,
use, manufacture,  disposal,  transportation, or release, either by itself or in
combination with other materials expected to be on the Premises,  is either: (i)
potentially  injurious to the public health,  safety or welfare, the environment
or the Premises,  (ii) regulated or monitored by any governmental  authority, or
(iii) a basis for potential  liability of Lessor to any  governmental  agency or
third  party  under any  applicable  statute  or common  law  theory.  Hazardous
Substances  shall  include,  but not be  limited  to,  hydrocarbons,  petroleum,
gasoline,  and/or crude oil or any products,  by-products or fractions  thereof.
Lessee shall not engage in any activity in or on the Premises which  constitutes
a  Reportable  Use of Hazardous  Substances  without the express  prior  written
consent  of  Lessor  and  timely  compliance  (at  Lessee's  expense)  with  all
Applicable Requirements. "REPORTABLE USE" shall mean (I) the Installation or use
of any above or below ground  storage  tank,  (II) the  generation,  possession,
storage, use, transportation, or disposal of a Hazardous Substance that requires
a permit  from,  or with  respect  to which a report,  notice,  registration  or
business plan is required to be filed with, any governmental  authority,  and/or
(III) the  presence at the  Premises of a Hazardous  Substance  with  respect to
which any  Applicable  Requirements  requires  that a notice be given to persons
entering or occupying the Premises or  neighboring  properties.  Notwithstanding
the foregoing,  Lessee may use any ordinary and customary  materials  reasonably
required to be used in the normal  course of the Agreed Use, so long as such use
is in compliance with all Applicable Requirements,  is not a Reportable Use, and
does not expose the Premises or neighboring,  property to any meaningful risk of
contamination  or  damage  or  expose  Lessor  to any  liability,  therefor.  In
addition,  Lessor may condition its consent to any Reportable Use upon receiving
such  additional  assurances  as Lessor  reasonably  deems  necessary to protect
itself,  the  public,  the  Premises  and/or  the  environment  against  damage,

                                  Page 5 of 21
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contamination,  injury  and/or  liability,  including,  but not  limited to, the
Installation  (and  removal on or before Lease  expiration  or  termination)  of
protective  modifications  (such as concrete  encasements) and/or increasing the
Security Deposit.

     (b) DUTY TO INFORM  LESSOR.  If Lessee knows,  or has  reasonable  cause to
believe,  that a Hazardous  Substance  has come to be located  in, on,  under or
about the  Premises,  other than as  previously  consented to by Lessor,  Lessee
shall immediately give written notice of such fact to Lessor, and provide Lessor
with a copy of any report,  notice,  claim or other  documentation  which it has
concerning the presence of such Hazardous Substance.

     (c) LESSEE  REMEDIATION.  Lessee  shall not cause or permit  any  Hazardous
Substance  to be  spilled  or  released  in, on,  under,  or about the  Premises
(including through the plumbing or sanitary sewer system) and shall promptly, at
Lessee's  expense,  take all  investigatory  and/or remedial  action  reasonably
recommended, whether or not formally ordered or required, for the cleanup of any
contamination  of, and for the  maintenance,  security and/or  monitoring of the
Premises or neighboring properties, that was caused or materially contributed to
by Lessee,  or pertaining to or involving any Hazardous  Substance  brought onto
the  Premises  during the term of this  Lease,  by or for  Lessee,  or any third
party.

     (d) LESSEE INDEMNIFICATION. Lessee shall indemnify, defend and hold Lessor,
its agents,  employees,  lenders and ground  lessor,  if any,  harmless from and
against  any and all  loss of  rents  and/or  damages,  liabilities,  judgments,
claims, expenses, penalties, and attorneys' and consultants' fees arising out of
or involving any Hazardous Substance brought onto the Premises by or for Lessee,
or any third party (provided, however, that Lessee shall have no liability under
this Lease with  respect to  underground  migration of any  Hazardous  Substance
under the Premises  from areas  outside of the  Project).  Lessee's  obligations
shall include, but not be limited to, the effects of any contamination or injury
to person,  property or the environment  created or suffered by Lessee,  and the
cost of investigation,  removal, remediation,  restoration and/or abatement, and
shall  survive the  expiration or  termination  of this Lease,  No  termination,
cancellation  or release  agreement  entered  into by Lessor  and  Lessee  shall
release Lessee from its  obligations  under this Lease with respect to Hazardous
Substances,  unless  specifically so agreed by Lessor in writing at the tithe of
such agreement.

     (e) LESSOR  INDEMNIFICATION.  Lessor and its  successors  and assigns shall
indemnify,  defend,  reimburse  and hold  Lessee,  its  employees  and  lenders,
harmless from and against any and all environmental damages,  including the cast
of  remediation,  which  existed  as a result  of  Hazardous  Substances  on the
Premises prior to the Start Date or which are caused by the gross  negligence or
willful misconduct of Lessor, its agents or employees.  Lessor's obligations, as
and when required by the  Applicable  Requirements,  shall  include,  but not be
limited to, the cost of investigation,  removal, remediation, restoration and/or
abatement, and shall survive the expiration or termination of this Lease.

     (f) INVESTIGATIONS AND REMEDIATIONS. Lessor shall retain the responsibility
and pay for any investigations or remediation  measures required by governmental
entities  having  jurisdiction  with  respect  to  the  existence  of  Hazardous
Substances  on the  Premises  prior to the Start Date,  unless such  remediation
measure is required as a result of Lessee's  use  (including  "Alterations",  as
defined in paragraph 7.3(a) below) of the Premises.  In which event Lessee shall
be  responsible  for such  payment.  Lessee  shall  cooperate  fully in any such
activities  at the  request of Lessor,  including  allowing  Lessor and  Lessors
agents to have reasonable  access to the Premises at reasonable  tithes in order
to carry out Lessor's investigative and remedial responsibilities.

     (g) LESSOR  TERMINATION  OPTION.  If a Hazardous  Substance  Condition (see
Paragraph 9.1(e)) occurs during the term of this Lease, unless Lessee is legally
responsible  therefor  (in which case Lessee shall make this  investigation  and
remediation thereof required by the Applicable Requirements and this Lease shall
continue  in full  force and  effect,  but  subject  to  Lessor's  rights  under
Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lessor's  option,  either (i)
investigate and remediate such Hazardous Substance  Condition,  if required,  as
soon as reasonably possible at Lessor's expense, in which event this Lease shall
continue in full force and effect,  or (ii) if the  estimated  cost to remediate
such  condition  exceeds  12 tithes  the then  monthly  Base  Rent or  $100,000,
whichever  is  greater,  give  written  notice to  Lessee,  within 30 days after
receipt by Lessor of knowledge of the  occurrence  of such  Hazardous  Substance
Condition,  of  Lessors  desire to  terminate  this Lease as of the date 60 days
following  the  date  of such  notice.  In the  event  Lessor  elects  to give a
termination notice,  Lessee may, within 10 days thereafter,  give written notice
to  Lessor of  Lessee's  commitment  to pay the  amount by which the cost of the
remediation of such Hazardous  Substance Condition exceeds an amount equal to 12
tithes the then  monthly Base Rent or  $100,000,  whichever  is greater.  Lessee
shall provide Lessor with said funds of satisfactory assurance thereof within 30
days following such commitment. In such event, this Lease shall continue in full
force and effect,  and Lessor shall proceed to make such  remediation as soon as
reasonably  possible after the required funds are available.  If Lessee does not
give such notice and provide the required funds or assurance  thereof within the
tithe provided,  this Lease shall terminate as of the date specified in Lessor's
notice of termination.

     6.3 LESSEE'S COMPLIANCE WITH APPLICABLE  REQUIREMENTS.  Except as otherwise
provided  in  this  Lease,  Lessee  shall,  at  Lessee's  sole  expense,  fully,
diligently  and in a  timely  manner,  materially  comply  with  all  Applicable
Requirements,  the requirements of any applicable fire insurance  underwriter or
rating bureau, and the  recommendations of Lessor's engineers and/or consultants
which  relate in any manner to the  Premises,  without  regard to  whether  said
requirements are now in effect or become effective after the Start Date.  Lessee
shall, within 10 days after receipt of Lessor's written request,  provide Lessor
with,  copies  of  all  permits  and  other  documents,  and  other  information
evidencing  Lessee's  compliance with any Applicable  Requirements  specified by
Lessor,  and shall  immediately  upon  receipt,  notify  Lessor in writing (with
copies of any documents  involved) of any  threatened  or actual claim,  notice,
citation, warning, complaint or report pertaining to or involving the failure of
Lessee or the Premises to comply with any Applicable Requirements.

     6.4  INSPECTION;  COMPLIANCE.  Lessor and Lessor's  "LENDER" (as defined in
Paragraph 30) and consultants shall have the right to enter into Premises at any
tithe, in the case of an emergency,  and otherwise at reasonable tithes, for the
purpose of inspecting the condition of the Premises and for verifying compliance
by Lessee with this  Lease.  The cost of any such

                                  Page 6 of 21
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inspections  shall  be  paid  by  Lessor,   unless  a  violation  of  Applicable
Requirements,  or a  contamination  is found to  exist  or be  imminent,  of the
inspection is requested or ordered by a  governmental  authority.  In such case,
Lessee shall upon request  reimburse Lessor for the cost of such inspection,  so
long as such inspection is reasonably related to the violation or contamination.

7.   MAINTENANCE; REPAIRS; UTILITY INSTALLATIONS; TRADE FIXTURES AND ALTERATION.

     7.1 LESSEE'S OBLIGATIONS.

     (a) IN GENERAL. Subject to the provisions of Paragraph 2.2 (Condition), 2.3
(Compliance),  6.3  (Lessee's  Compliance  with  Applicable  Requirements),  7.2
(Lessor's Obligations), 9 (Damage or Destruction), and 14 (Condemnation), Lessee
shall,  at Lessee's  sole  expense,  keep the  Premises,  Utility  Installations
(intended for Lessee's exclusive use, no matter where located),  and Alterations
in good order,  condition and repair (whether or not the portion of the Premises
requiring repairs, or the means of repairing the same, are reasonably or readily
accessible to Lessee,  and whether or not the need for such repairs  occurs as a
result of Lessee's  use,  any prior use, the elements or the age of such portion
of the  Premises),  including,  but not limited to, all equipment or facilities,
such as plumbing,  HVAC equipment,  electrical,  lighting  facilities,  bolters,
pressure vessels, fixtures, interior walls, interior surfaces of exterior walls,
ceilings,  floors,  windows, doors, plate glass, and skylights but excluding any
items which are the  responsibility of Lessor pursuant to Paragraph 7.2. Lessee,
in keeping the Premises in good order,  condition and repair, shall exercise and
perform good maintenance  practices,  specifically including the procurement and
maintenance  of the  service  contracts  required  by  Paragraph  7.1(b)  below.
Lessee's obligations shall include  restorations,  replacements or renewals when
necessary to keep the Premises and all improvements thereon or a part thereof in
good order, condition and state of repair.

     (b) SERVICE CONTRACTS.  Lessee shall, at Lessee's sole expense, procure and
maintain contracts,  with copies to Lessor, in customary form and substance for,
and with  contractors  specializing  and  experienced in the  maintenance of the
following  equipment  and  improvements,  if any, if and when  installed  on the
Premises: (i) HVAC equipment (ii) boiler and pressure vessels, (iii) clarifiers,
and (iv) any other equipment,  if reasonably required by Lessor. However, Lessor
reserves the right,  upon notice to Lessee,  to, procure and maintain any or all
of such  service  contracts,  and if Lessor so elects.  Lessee  shall  reimburse
Lessor, upon demand, for the cost thereof.

     (c) FAILURE TO PERFORM.  If Lessee  fails to perform  Lessee's  obligations
under this  Paragraph  7.1.  Lessor may enter upon the  Premises  after 10 days'
prior written  notice to Lessee  (except in the case of an  emergency,  in which
case no notice shall be required),  perform such obligations on Lessee's behalf,
and put the  Premises in good order,  condition  and  repair,  and Lessee  shall
promptly reimburse Lessor for the cost thereof.

     (d) REPLACEMENT. Subject to Lessee's indemnification of Lessor as set forth
in Paragraph 8.7 below, and without relieving Lessee of liability resulting from
Lessee's failure to exercise and perform good maintenance practices.  If an item
described in Paragraph  7.1(b) cannot by repaired  other than at a cost which is
in excess of 50% of the cost of  replacing  such  item,  then such item shall by
replaced by Lessor,  and the cost thereof shall be prorated  between the Parties
and Lessee shall only be obligated  to pay,  each month during the  remainder of
the term of this Lease,  on the date on which Base Rent is due, an amount  equal
to the product of multiplying  the cost of such  replacement by a fraction,  the
numerator of which is one, and the  denominator of which is 144 (ie.  1/144th of
the cost per month).  Lessee shall pay interest on the unamortized  balance at a
rate that is  commercially  reasonable in the judgment of Lessor's  accountants.
Lessee may, however, prepay its obligation at any time.

     7.2 LESSOR'S  OBLIGATIONS.  Subject to the  provisions  or  Paragraphs  2.2
(Condition),  2.3 (Compliance),  4.2 (Common Area Operating Expenses),  6 (Use),
7.1 (Lessee's  Obligations),  9 (Damage or Destruction)  and 14  (Condemnation),
Lessor,  subject to reimbursement  pursuant to Paragraph 4.2, shall keep in good
order,  condition  and  repair  the  foundations,   exterior  walls,  structural
condition of interior  bearing  walls,  exterior roof,  fire  sprinkler  system.
Common Area fire alarm and/or smoke detection  systems,  fire hydrants,  parking
lots,  walkways,  parkways,  driveways,  landscaping,  fences, signs and utility
systems serving the Common Areas and all parts thereof, as well a: providing the
services  for  which  there is a  Common  Area  Operating  Expense  pursuant  to
Paragraph  4.2.  Lessor shall not be obligated to paint the exterior or interior
surfaces of exterior walls nor shall Lessor be obligated to maintain,  repair or
replace windows,  doors or plate glass of the Premises.  Lessee expressly waives
the  benefit  of any  statute  now or  hereafter  in effect to the  extent it is
inconsistent with the terms of this Lease.

     7.3 UTILITY INSTALLATIONS; TRADE FIXTURES; ALTERATIONS.

     (a) DEFINITIONS.  The term "Utility  Installations" refers to all floor and
window coverings, air lines, power panels, electrical distribution, security and
fire  protection  systems,   communication  systems,   lighting  fixtures,  HVAC
equipment,  plumbing,  and  fencing  in or on  the  Premises.  The  term  "Trade
Fixtures"  shall  mean  Lessee's  machinery  and  equipment  that can be removed
without doing material damage to the Premises. The term "Alterations" shall mean
any modification of the improvements,  other than Utility Installations or Trade
Fixtures,  whether by addition or deletion.  "Lessee  Owned  Alterations  and/or
Utility  Installations" are defined as Alterations and/or Utility  Installations
made by Lessee that are not yet owned by Lessor pursuant to Paragraph 7.4(a).

     (b) CONSENT. Lessee shall not make any Alterations or Utility Installations
to the Premises  without Lessor's prior written  consent.  Lessee may,  however,
make  nonstructural  Utility  Installations  to the  interior  of  the  Premises
(excluding the roof) without such consent but upon notice to Lessor,  as long as
they are not visible from the outside, do not involve puncturing,  relocating or
removing the roof or any existing walls,  and the cumulative cost thereof during
this Lease as extended does not exceed a sum equal to 3 month's Base Rent in the
aggregate   or  a  sum  equal  to  one  month's  Base  Rent  in  any  one  year.
Notwithstanding  the  foregoing,  Lessee  shall  not  make or  permit  any  roof
penetrations  and/or  install  anything on the roof  without  the prior  written
approval of Lessor.  Lessor may, as a  precondition  to granting such  approval,
require  Lessee to

                                  Page 7 of 21
<PAGE>

utilize a  contractor  chosen  and/or  approved by Lessor.  Any  Alterations  or
Utility  Installations  that Lessee shall  desire to make and which  require the
consent of the Lessor shall be presented to Lessor in written form with detailed
plans.  Consent shall be deemed  conditioned  upon  Lessee's:  (i) acquiring all
applicable  governmental permits, (ii) furnishing Lessor with copies of both the
permits and the plans and specifications  prior to commencement of the work, and
(iii)  compliance  with all  conditions  of said  permits  and other  Applicable
Requirements  in a prompt and  expeditious  manner.  Any  Alterations or Utility
Installations  shall  be  performed  in  a  workmanlike  manner  with  good  and
sufficient materials.  Lessee shall promptly upon completion furnish Lessor with
as-built  plans and  specifications.  For work which cost an amount in excess of
one month's Base Rent.  Lessor may condition its consent upon Lessee providing a
lien and  completion  bond in an amount equal to 150% of the  estimated  cost of
such  Alteration  or  Utility  Installation  and/or  upon  Lessee's  posting  an
additional Security Deposit with Lessor.

     (c)  INDEMNIFICATION.  Lessee shall pay,  when due, all claims for labor or
materials furnished or alleged to have been furnished to or for Lessee at or for
use on the  Premises,  which claims are or may be secured by any  mechanic's  or
materialmen's  lien against the Premises or any interest  therein.  Lessee shall
give Lessor not less than 10 days notice prior to the  commencement  of any work
in, on or about the Premises, and Lessor shall have the right to post notices of
non-responsibility. If Lessee shall contest the validity of any such lien, claim
or demand,  then Lessee shall,  at its sole expense  defend and protect  itself,
Lessor and the  Premises  against  the same and shall pay and  satisfy  any such
adverse judgment that may be rendered thereon before the enforcement thereof. If
Lessor shall  require,  Lessee shall furnish a surety bond in an amount equal to
150% of the amount of such contested lien, claim or demand,  indemnifying Lessor
against  liability  for the same. If Lessor  elects to  participate  in any such
action, Lessee shall pay Lessor's attorneys' fees and costs.

7,4  OWNERSHIP; REMOVAL; SURRENDER; AND RESTORATION.

     (a)  OWNERSHIP.  Subject  to  Lessor's  right to  require  removal or elect
ownership as hereinafter  provided,  all Alterations  and Utility  Installations
made by Lessee  shall be the  property of Lessee,  but  considered a part of the
Premises.  Lessor may,  at any time,  elect in writing to be the owner of all or
any specified part of the Lessee Owned  Alterations  and Utility  Installations.
Unless  otherwise  instructed  per  paragraph  7.4(b)  hereof,  all Lessee Owned
Alterations and Utility Installations shall, at the expiration or termination of
this Lease,  become the property of Lessor and be surrendered by Lessee with the
Premises.

     (b)  REMOVAL.  By  delivery  to Lessee of written  notice  from  Lessor not
earlier  than 90 and not later than 30 days prior to the end of the term of this
Lease,  Lessor may require that any or all Lessee Owned  Alterations  or Utility
Installations be removed by the expiration or termination of this Lease.  Lessor
may  require  the  removal  at any time of all or any part of any  Lessee  Owned
Alterations or Utility Installations made without the required consent.

     (c)  SURRENDER;  RESTORATION.  Lessee shall  surrender  use Premises by the
Expiration Date or any earlier  termination  date, with all of the improvements,
parts and surfaces thereof broom clean and free of debris, and in good operating
order, condition and state of repair, ordinary wear and tear excepted. "Ordinary
wear and tear"  shall not include  any damage or  deterioration  that would have
been prevented by good maintenance practice.  Notwithstanding the foregoing,  if
this Lease is for 12 months or less, then Lessee shall surrender the Premises in
the same  condition  as  delivered to Lessee on the Start Date with NO allowance
for ordinary  wear and tear.  Lessee shall repair any damage  occasioned  by the
installation, maintenance or removal of Trade Fixtures. Lessee Owned Alterations
and/or Utility Installations,  furnishings, and equipment as well as the removal
of any storage  tank  installed by or for Lessee.  Lessee shall also  completely
remove from the  Premises  any and all  Hazardous  Substances  brought  onto the
Premises by or for Lessee, or any third party (except Hazardous Substances which
were deposited via underground migration from areas outside of the Project) even
if such  removal  would  require  Lessee to perform or pay for work that exceeds
statutory  requirements.  Trade Fixtures shall remain the property of Lessee and
shall be removed by Lessee.  The failure by Lessee to timely vacate the Premises
pursuant to this Paragraph  7.4(c) without the express written consent of Lessor
shall constitute a holdover under the provisions of Paragraph 26 below.

8.   INSURANCE; INDEMNITY.

     8.1 PAYMENT OF PREMIUM INCREASES.

     (a) As used herein,  the term  "Insurance  Cost Increase" is defined as any
increase in the actual cost of the insurance  applicable to the Building  and/or
the Project and required to be carried by Lessor, pursuant to Paragraphs 8.2(b),
8.3(a) and 8.3(b),  ("Required Insurance"),  over and above the Base Premium, as
hereinafter  defined,  calculated  on an annual basis.  Insurance  Cost Increase
shall include,  but not be limited to,  requirements of the holder of a mortgage
or deed of trust  covering the  Premises,  Building  and/or  Project,  increased
valuation of the Premises,  Building  and/or  Project,  and/or a general premium
rate increase. The term Insurance Cost Increase shall not, however,  include any
premium increases resulting from the nature of the occupancy of any other tenant
of the Building.  If the parties  insert a dollar amount in Paragraph  1.9, such
amount shall be  considered  the "Base  Premium."  The Base Premium shall be the
annual premium applicable to the 12 month period immediately preceding the Start
Date. If, however, the Project was not insured for the entirety of such 12 month
period,  then the Base Premium  shall be the lowest  annual  premium  reasonably
obtainable  for the Required  Insurance as of the Start Date,  assuming the most
nominal use  possible of the  Building.  In no event,  however,  shall Lessee be
responsible  for any  portion of the  premium  cost  attributable  to  liability
insurance coverage in excess of $2,000,000 procured under Paragraph 8.2(b).

     (b) Lessee  shall pay any  Insurance  Cost  Increase to Lessor  pursuant to
Paragraph  4.2.  Premiums for policy periods  commencing  prior to, or extending
beyond,  the  term  of this  Lease  shall  be  prorated  to  coincide  with  the
corresponding Start Date or Expiration Date.

                                  Page 8 of 21
<PAGE>

     8.2 LIABILITY INSURANCE.

     (a) CARRIED BY LESSEE.  Lessee  shall obtain and keep in force a Commercial
General  Liability,  policy of  insurance  protecting  Lessee  and  Lessor as an
additional  insured  against  claims  for  bodily  injury,  personal  injury and
property  damage based upon or arising out of the ownership,  use,  occupancy or
maintenance of the Premises and all areas appurtenant  thereto.  Such insurance,
shall be on an occurrence basis providing single limit coverage in an amount not
less than  $1,000,000 per occurrence  with an annual  aggregate of not less than
$2.000,000, an "Additional  Insured-Managers or Lessors of Premises Endorsement"
and contain the "Amendment of the Pollution  Exclusion  Endorsement"  for damage
caused by heat, smoke or fumes from a hostile fire. The policy shall not contain
any intra insured  exclusions as between insured persons or  organizations,  but
shall  include  coverage for  liability  assumed under this Lease as an "Insured
Contract"  for the  performance  of Lessee's  indemnity  obligations  under this
Lease. The limits of said insurance shall not,  however,  limit the liability of
Lessee nor relieve Lessee of any obligation hereunder.  All insurance carried by
Lessee  shall be primary to and not  contributory  with any  similar  insurance,
carried by Lessor, whose insurance shall be considered excess insurance only.

     (d)  CARRIED  BY LESSOR.  Lessor  shall  maintain  liability  insurance  as
described in Paragraph 8.2(a), in addition to, and not in lieu of, the insurance
required to be maintained by Lessee.  Lessee shall not be named as an additional
insured therein.

     8.3 PROPERTY INSURANCE - BUILDING, IMPROVEMENT AND RENTAL VALUE.

     (a)  BUILDING  AND  IMPROVEMENTS.  Lessor  shall obtain and keep in force a
policy or  policies of  insurance  in the name of Lessor,  with loss  payable to
Lessor,  any  ground-lessor,  and to any Lender  insuring  loss or damage to the
Premises.  The amount of such insurance  shall be equal to the full  replacement
cost of the  Premises,  as the same shall exist from time to time, or the amount
required by any Lender,  but in no event more than the  commercially  reasonable
and available  insurable  value thereof.  Lessee Owned  Alterations  and Utility
Installations,  Trade Fixtures,  and Lessee's personal property shall be insured
by Lessee under  Paragraph  8.4. If the coverage is available  and  commercially
appropriate,  such policy or policies  shall insure  against all risks of direct
physical  loss or damage  (except the perils of flood and/or  earthquake  unless
required by a Lender), including coverage for debris removal and the enforcement
of  any   Applicable   Requirements   requiring   the   upgrading,   demolition,
reconstruction  or replacement of any portion of the Premises as the result of a
covered  loss.  Said policy or policies  shall also contain an agreed  valuation
prevision  in  lieu  of any  coinsurance  clause,  waiver  of  subrogation,  and
inflation guard protection  causing an increase in the annual property insurance
coverage  amount by a factor of not less than the adjusted  U.S.  Department  of
Labor Consumer Price Index for All Urban Consumers for the city nearest to where
the Premises are located.  If such Insurance  coverage has a deductible  clause,
the deductible amount shall not exceed $1,000 per occurrence.

     (b) RENTAL  VALUE.  Lessor  shall also obtain and keep in force a policy or
policies  in the name of Lessor  with loss  payable  to Lessor  and any  Lender,
insuring  the loss of the full  Rent for one year  with an  extended  period  of
indemnity for an additional 180 days (`Rental Value Insurance").  Said insurance
shall contain an agreed valuation  prevision in lieu of any coinsurance  clause,
and the amount of coverage  shall be adjusted  annually to reflect the projected
Rent otherwise payable by Lessee, for the next 12 month period.

     (c)  ADJACENT  PREMISES.  Lessee shall pay for any increase in the premiums
for the  property  insurance  of the  Building and for the Common Areas or other
buildings in the Project if said increase is caused by Lessee's acts, omissions,
use or occupancy of the Premises.

     (d) LESSEE'S IMPROVEMENTS. Since Lessor is the Insuring Party, Lessor shall
not be required to Insure  Lessee Owned  Alterations  and Utility  Installations
unless the item in question has become the property of Lessor under the terms of
this Lease.

     8.4 LESSEE'S PROPERTY: BUSINESS INTERRUPTION INSURANCE.

     (a) PROPERTY DAMAGE. Lessee shall obtain and maintain insurance coverage on
all of Lessee's personal property,  Trade Fixtures, and Lessee Owned Alterations
and  Utility  Installations.  Such  Insurance  shall  be full  replacement  cost
coverage with a deductible of not to exceed $1,000 per occurrence.  The proceeds
from any such insurance  shall be used by Lessee for the replacement of personal
property,  Trade Fixture and Lessee Owned Alterations and Utility Installations.
Lessee shall  provide  Lessor with written  evidence  that such  insurance is in
force.

     (b) BUSINESS INTERRUPTION.  Lessee shall obtain and maintain loss of income
and extra expanse  insurance in amounts as will  reimburse  Lessee for direct or
indirect loss of earnings attributable to all perils commonly insured against by
prudent  lessees in the  business of Lessee or  attributable  to  prevention  of
access to the Premises as a result of such perils.

     (c) NO REPRESENTATION OF ADEQUATE COVERAGE.  Lessor makes no representation
that the limits or forms of coverage of insurance  specified herein are adequate
to cover Lessee's property, business operations or obligations under this Lease.

     8.5 INSURANCE  POLICIES.  Insurance  required  herein shall be by companies
duly  licensed or admitted to transact  business in the state where the Premises
are located,  and  maintaining  during the policy term a "General  Policyholders
Rating"  of at least B+, V, as set forth in the most  current  issue of  "Best's
Insurance  Guide",  or such other rating as may be required by a Lender.  Lessee
shall  not do or permit  to be done  anything  which  invalidates  the  required
insurance  policies.  Lessee shall,  prior to the Start Date,  deliver to Lessor
certified  copies of policies of such insurance or  certificates  evidencing the
existence  and  amounts  of the  required  insurance.  No such  policy  shall be
cancelable or subject to modification  except after 30 days prior written notice
to  Lessor.  Lessee  shall,  at least 30 days  prior to the  expiration  of such
policies,  furnish  Lessor with  evidence of  renewals  or  "Insurance  binders"
evidencing  renewal  thereof,  or Lessor may order such Insurance and charge the
cost  thereof to Lessee,  which amount shall be payable by Lessee to Lessor upon
demand. Such policies shall be for a term of at least one year,

                                  Page 9 of 21
<PAGE>

or the length of the remaining term of this Lease,  whichever is less. If either
Party shall fail to procure and maintain the insurance required to be carried by
it, the other Party may, but shall not be required to,  procure and maintain the
same.

     8.6 WAIVER OF SUBROGATION.  Without affecting any other rights or remedies,
Lessee and Lessor  each hereby  release  and relieve the other,  and waive their
entire right to recover damages against the other,  for loss of or damage to its
property  arising  out of or  incident  to the  Premises  required to be insured
against  herein.  The effect of such  releases and waivers is not limited by the
amount of  insurance  carried  or  required,  or by any  deductibles  applicable
hereto.  The Parties agree to have their  respective  property damage  Insurance
carrier  waive any right to  subrogation  that such  companies  may have against
Lessor  or  Lessee,  as the  case  may  be,  so  long  as the  insurance  is not
invalidated thereby.

     8.7 INDEMNITY.  Except for Lessor's gross negligence or willful misconduct,
Lessee shall indemnity,  protect, defend and hold harmless the Premises,  Lessor
and its agents, Lessor's master or ground Lessor, partners and Lenders, from and
against any and all claims,  loss of rents  and/or  damages,  liens,  judgments,
penalties, attorneys' and consultants' fees, expenses and/or liabilities arising
out of,  involving,  or in  connection  with,  the use and/or  occupancy  of the
Premises by Lessee.  If any action or  proceeding is brought  against  Lessor by
reason of any of the foregoing matters, Lessee shall upon notice defend the same
at Lessee's  expenses by counsel  reasonably  satisfactory  to Lessor and Lessor
shall cooperate with Lessee in such defense. Lessor need not have first paid any
such claim in order to be defended or indemnified.

     8.8  EXEMPTION  OF LESSOR FROM  LIABILITY.  Lessor  shall not be liable for
injury or damage to the person or goods, wares, merchandise or other property of
Lessee,  Lessee's  employees,  contractors,  invitees,  customers,  or any other
person in or about the  Premises,  whether such damage or injury is caused by or
results from fire, steam, electricity, gas, water or rain, or from the breakage,
leakage,  obstruction  or  other  defects  of  pipes,  fire  sprinklers,  wires,
appliances,  plumbing,  HVAC or  lighting  fixtures;  or from any  other  cause,
whether the said  injury or damage  results  from  conditions  arising  upon the
Premises  or upon other  portions  of the  Building,  or from  other  sources or
places.  Lessor  shall not be liable  for any  damages  arising  from any act or
neglect of any other  tenant or Lessor nor from the failure of Lessor to enforce
the  provisions  of any other  leases in the Project.  Notwithstanding  Lessor's
negligence  or breach of this  Lease,  Lessor  shall under no  circumstances  be
liable  for  injury  to  Lessee's  business  or for any loss of income or profit
therefrom.

9.   DAMAGE OR DESTRUCTION.

     9.1 DEFINITION.

     (a)  "PREMISES  PARTIAL  DAMAGE"  shall mean damage or  destruction  to the
improvements on the Premises,  other than Lessee Owned  Alternations and Utility
Installations,  which can  reasonably  be  repaired in 3 months or less from the
date of the damage or  destruction,  and the cost  thereof does not exceed a sum
equal to 6 month's Base Rent.  Lessor shall notify  Lessee in writing  within 30
days from the date of the damage or  destruction as to whether or not the damage
is Partial or Total.

     (b) "PREMISES  TOTAL  DESTRUCTION"  shall mean damage or destruction to the
improvements on the Premises,  other than Lessee Owned  Alternations and Utility
Installations  and Trade  Fixtures,  which  cannot  reasonably  be repaired in 3
months  or less  from the date of the  damage  or  destruction  and/or  the cost
thereof  exceeds a sum equal to 6 month's Base Rent.  Lessor shall notify Lessee
in  writing  within 30 days from the date of the  damage  or  destruction  as to
whether or not the damage is Partial or Total.

     (c) "INSURED LOSS" shall mean damage or destruction to  improvements on the
Premises,  other than Lessee Owned  Alterations  and Utility  Installations  and
Trade  Fixtures,  which was  caused by an event  required  to be  covered by the
Insurance described in Paragraph 8.3(a),  irrespective of any deductible amounts
or coverage limits involved.

     (d)  "REPLACEMENT  COST"  shall  mean the cost to  repair  or  rebuild  the
Improvements  owned by Lessor at the time of the  occurrence to their  condition
existing  immediately prior thereto,  including  demolition,  debris removal and
upgrading  required by the  operation of  Applicable  Requirements,  and without
deduction or depreciation.

     (e) "HAZARDOUS  SUBSTANCE CONDITION" shall mean the occurrence of discovery
of a condition  involving  the presence of, or a  contamination  by, a Hazardous
Substance as defined in Paragraph 6.2(a), in, on, or under the Premises.

     9.2 PARTIAL DAMAGE - INSURED LOSS. If a Premises  Partial Damage that is an
Insured Loss occurs, then Lessor shall, at Lessor's expense,  repair such damage
(but not  Lessee's  Trade  Fixtures  or Lessee  Owned  Alterations  and  Utility
Installations)  as soon as reasonably  possible and this Lease shall continue in
full force and  effect;  provided,  however,  that  Lessee  shall,  at  Lessor's
election,  make the repair of any damage or destruction the total cost to repair
of which is $5,000 or less, and, in such event, Lessor shall make any applicable
insurance  proceeds  available to Lessee on a reasonable basis for that purpose.
Notwithstanding the foregoing, if the required insurance was not in force or the
insurance  proceeds are not sufficient to effect such repair, the insuring Party
shall  promptly  contribute  the  shortage in  proceeds as and when  required to
complete said repairs. In the event,  however, such shortage was due to the fact
that, by reason of the unique nature of the improvements,  full replacement dost
insurance coverage was not commercially  reasonable and available,  Lessor shall
have no  obligation  to pay for the shortage in  insurance  proceeds or to fully
restore the unique aspects of the Premises  unless Lessee  provides  Lessor with
the funds to cover same, or adequate assurance thereof, within 10 days following
receipt  of written  notice of such  shortage  and  request  thereof.  If Lessor
receives said funds or adequate assurance thereof within said 10 days thereafter
to: (i) make such  restoration  and repair as is  commercially  reasonable  with
Lessor paying any shortage in proceeds, in which case this Lease shall remain in
full force and effect,  or (ii) have this Lease  terminate  30 days  thereafter.
Lessee shall not be entitled to reimbursement of any funds contributed by Lessee
to repair any such damage or destruction. Promises Partial Damage due to flood
or

                                  Page 10 of 21
<PAGE>

earthquake shall be subject to Paragraph 9.3,  notwithstanding that there may
be some insurance coverage,  but the net proceeds of any such insurance shall be
made available for the repairs if made by either Party.

     9.3 PARTIAL DAMAGE - UNINSURED  LOSS. If a Promises  Partial Damage that is
not an Insured  Lose  occurs,  unless  caused by a  negligent  or willful act of
Lessee (in which  event  Lessee  shall make the  repairs at  Lessee's  expense),
Lessor may  either:  (i) repair such  damage as soon as  reasonably  possible at
Lessor's  expense,  in which event this Lease  shall  continue in full force and
effect,  or (ii)  terminate this Lease by giving written notice to Lessee within
30 days after  receipt by Logger of knowledge of the  occurrence of seal damage.
Such  termination  shall be effective 60 days following the data of such notice.
In the event Lessor elects to terminate  this Lease,  Lessee shall have me right
within 10 days after receipt of the termination notice to give written notice to
Lessor  of  Lessee's  commitment  to pay for me repair  of such  damage  without
reimbursement  from  Lessor.  Lessee  shall  provide  Lessor  with said funds of
satisfactory  assurance thereof within 30 days alter making such Commitment.  In
such  event this Lease  shall  continue  in full and  effect,  and Lessor  shall
proceed to make such repairs as soon as reasonably  possible  after the required
fund: are available. If Lessee does not make the required commitment, this Lease
shall terminal, as of the data specified in the lamination notice.

     9.4 TOTAL  DESTRUCTION.  Notwithstanding  any other prevision  hereof, If a
Premises Total  Destruction  occur, this Lease shall terminate 60 days following
such Destruction. If the damage or destruction was caused by me gross negligence
or willful misconduct of Lessee,  Lessor shall have the right to recover Lassoes
damages from Lessee, except as provided in Paragraph 9.9.

     9.5  DAMAGE  NEAR END OF TERM.  If at any time  during the last 6 months of
this Lease there is damage for which the met to repair  exceeds one month's Base
Rent,  whether or not an insured Loss,  Lessor may terminate MIS Lease effective
60 days  following  the dale of  occurrence  of such  damage by giving a written
lamination  notice m Lessee  within 30 days after the date of occurrence of such
damage. Notwithstanding the foregoing, if Lessee at that time has an exercisable
option to extend MIS Lease or to purchase me Premises,  then Lessee may preserve
this Lease by, (a)  exercising  such  Option and (b)  providing  Lessor with any
shortage in Insurance  proceeds (or adequate  assurance  thereof) needed to make
the  repairs  on or  before  me  Canter  of (i) me date  which Is 10 days  after
Lessee's receipt or Lessor's  written notice  purporting to terminate MIS Lease,
or (ii) the day prior to the date upon which such option expires. If Lessee duly
exercises  such option  during such  period and  provides  Lessor with funds (or
adequate assurance thereof) to Cover any shortage in insurance proceeds,  Lessor
shall, at Lessor's commercially  reasonable expense,  repair such damage as soon
as reasonably  possible and this Lease shall  continue in full force and effect.
If Lessee  fails to exercise  such option and  provide  such funds or  assurance
during such period, then this Lease shall terminate on the date specified in the
termination notice and Lessee's option shall be extinguished.

     9.6 ABATEMENT OF RENT; LESSEE'S REMEDIES.

     (a)  ABATEMENT.  In the event of Premises  Partial Damage or Premises Total
Destruction  or  a  Hazardous  Substance  Condition  for  which  Lessee  is  not
responsible  under this Lease, the Rent payable by Lessee for me period required
for the repair,  remediation  or  restoration  of such damage shall be abated in
proportion to the degree to which  Lessee's use or me Premises is Impaired,  but
not m exceed me proceeds  received  from the Rental Value  Insurance.  All other
obligations of Lessee  hereunder shall be performed by Lessee,  and Lessor shall
have no  liability  for any such  damage,  destruction,  remodiation,  repair or
restoration except as provided herein.

     (b)  REMEDIES.  If Lessor  shall be  obligated  to repair  or  restore  the
Premises and does not commence, in a substantial and meaningful way, such repair
or restoration within 90 days after such obligation shall accrue, Lessee may, at
any time prior to the  commencement of such repair or restoration,  give written
notice to Lessor and to any  Lenders  of which  Lessee  has  actual  notice,  of
Lessee's  election  to  terminate  this  Lease on a date not loess  than 60 days
following the giving of such notice. If Lessee gives such notice and such repair
or  restoration  is not commenced  within 30 days  thereafter,  this Lease shall
terminate as of the date specified in said notice.  If the repair or restoration
is commenced  within such 30 days,  this Lease shall  continue in full force and
effect.  "Commence"  shall mean either the  unconditional  authorization  of the
preparation  of the required  plans,  or the beginning of the actual work on the
Premises, whichever first occurs.

     9.7 TERMINATION;  ADVANCE PAYMENTS. Upon termination of this Lease pursuant
to  Paragraph  6.2(g) or  Paragraph  9, an  equitable  adjustment  shall be made
concerning  advance Base Rent and any other  advance  payments made by Lessee to
Lessor. Lessor shall, in addition, return to Lessee so much of Lessee's Security
Deposit as has not been, or is not then required to be, used by Lessor.

     9.8 WAIVE  STATUTES.  Lessor and Lessee  agree that the terms of this Lease
shall govern the effect of any damage to or  destruction  of the  Premises  with
respect to the  termination of this Lease and hereby waive the provisions of any
present or future statute to the extent inconsistent herewith.

10.  REAL PROPERTY TAXES.

     10.1 DEFINITIONS.

     (a) "REAL PROPERTY  TAXES." As used herein,  the form "REAL PROPERTY TAXES"
shall Include any form of assessment; real estate, general, special, ordinary or
extraordinary, or rental levy or tax (other than inheritance, personal income or
estate  taxes);  Improvement  bond;  and/or  license fee imposed  upon or levied
against any legal or equitable Interest of Lessor in the Project, Lessor's fight
to other Income therefrom, and/or Lessor's business of leasing, by any authority
having the  direct or  Indirect  power to tax and where the funds are  generated
with reference to the Project address and where the proceeds so generated are to
be applied by the city, county or other local taxing authority of a Jurisdiction
within which the Project is located.  The term "Real Property  Taxes" shall also
include any tax,  fee,  levy,  assessment  or charge,  or any Increase  therein,
imposed by

                                 Page 11 of 21
<PAGE>

by reason of events occurring during the term of this Lease,  including but
not limited to, a change in the Ownership of the Project or any portion  thereof
or a change in the improvements thereon.

     (b) "BASE  REAL  PROPERTY  TAXES."  As used  herein,  the term  "Base  Real
Property  Taxes" shall be me amount of Real Property  Taxes,  which are assessed
against the  Premises,  Building,  Project or Common Areas In the calendar  year
during which the Lease is executed.  In calculating  Real Property Taxes far any
calendar  year,  the Real  Property  Taxes for any real estate tax year shall be
included in the  calculation of Real Property Taxes for such calendar year based
upon the number of days which such calendar year and tar year have in common.

     10.2 PAYMENT OF TAXES.  Lessor shall pay the Real Property Taxes applicable
to the  Project,  and  except as  otherwise  provided  In  Paragraph  10.3,  any
increases in such amounts over the Base Real Property Taxes shall be included in
the  calculation  of Common  Area  Operating  Expenses  in  accordance  with the
provisions of Paragraph 4.2.

     10.3  ADDITIONAL  IMPROVEMENTS.  Common Area  Operating  Expenses shall not
Include Real Property  Taxes  specified in the tax  assessor's  records and work
sheets as being  caused by  additional  improvements  placed  upon me Project by
other  lessees or by Lessor for the exclusive  enjoyment of such other  lessees.
Notwithstanding  Paragraph 10.2 hereof,  Lessee shall, however, pay to Lessor at
the time Common Area  Operating  Expenses am payable  under  Paragraph  4.2, the
entirety of any Increase in Real Property Taxes if assessed  solely by reason of
Alterations, Trade Fixture: or Utility Installations placed upon the Premises by
Lessee or at Lessee's request.

     10.4 JOINT  ASSESSMENT.  If the Building is not separately  assessed,  Real
Property Taxes allocated to the Building shall be an equitable proportion of the
Real Property Taxes for all of the land and improvements included within the tax
parcel assessed,  such proportion to be determined by Lessor from the respective
valuations  assigned in the assessors  work sheets or such other  information as
may be reasonably available.  Lessor's reasonable determination thereof, in good
faith, shall be conclusive.

     10.5 PERSONAL  PROPERTY  TAXES.  Lessee shall pay prior to delinquency  all
taxes  assigned  against and levied upon Lessee  Owned  Allegations  and Utility
Installations,  Trade Fixtures, furnishings, equipment and all personal property
of Lessee  contained  in the  Premises.  When  possible,  Lessee shall cause its
Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings,
equipment and all other personal  property to be assessed and billed  separately
from the real  property of Lessor.  If any of Lessee's  said  property  shall be
assessed  with  Lessor's  real  property,  Lessor  shall  pay  Lessor  the taxes
attributable  to  Lessor's  property  within 10 days after  receipt of a written
statement setting forth tile taxes applicable to Lessee's property.

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

12.  ASSIGNMENT AND SUBLETTING.

     12.1 LESSOR'S  CONSENT  REQUIRED.  (a) Lessee shall not  voluntarily  or by
operation of law assign, transfer,  mortgage or encumber (collectively,  "ASSIGN
OR ASSIGNMENT") or sublet all or any part of Lessee's  interest in this Lease or
in the Premises without Lessor's prior written consent.

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

     (c) The involvement of Lessee or its assets in any  transaction,  or series
of  transactions  (by way of  merger,  sale,  acquisition,  financing  transfer,
leveraged  buy-out  or  otherwise),  whether  or  not  a  formal  assignment  or
hypothecation  of this Lease or Lessee's  assets  occurs,  which results or will
result in a reduction  of the Net Worth of Lessee by an amount  greater than 25%
of such Net Worth as it was  represented  at the time of the  execution  of this
Lease  or at the  time  of the  most  recent  assignment  to  which  Lessor  has
consented, or as it exists immediately prior to said transaction or transactions
constituting such reduction, whichever was or is greater, shall be considered an
assignment of this Lease to which Lessor may withhold its consent. "NET WORTH OF
LESSEE"  shall  mean  the  net  worth  of  Lessee   (excluding  any  guarantors)
established under generally accepted accounting principles.

     (d) An assignment or subletting  without consent shall, at Lessor's option,
be a Default curable after notice per Paragraph 13.1(c),  or a noncurable Breach
without the necessity of any notice and grace period.  If Lesser elects to treat
such  unapproved  assignment or subletting  as a noncurable  Breach,  Lessor may
either: (i) terminate this Lease, or (ii) upon 30 days written notice,  increase
the monthly Base Rent to 110% of the Base Rent then in effect.  Further,  in the
event of such Breach and rental adjustment, (i) the purchase price of any option
to purchase the Premises  held by Lessee shall be subject to similar  adjustment
to 110 % of the price  previously  in effect,  and (ii) all fixed and  non-fixed
rental  adjustments  scheduled  during the  remainder of the Lease term shall be
increased to 110% of the scheduled adjusted rent.

     (e)  Lessee's  remedy for any breach of  Paragraph  12.1 by Lessor shall be
limited to compensatory damages and/or injunctive relief.

12.2 TERMS AND CONDITIONS APPLICABLE TO ASSIGNMENT AND SUBLETTING.

     (a) Regardless of Lessor's consent, any assignment or subletting shall not:
(i) be effective  without the express  written  assumption  by such  assignee or
sublease of the  obligations of Lessee under this Lease,  (ii) release Lessee of
any

                                 Page 12 of 21
<PAGE>

obligations  hereunder,  or (iii) alter the primary  liability of Lessee for the
payment of Rent or for the performance of any other  obligations to be performed
by Lessee.

     (b) Lessor may accept Rent or performance of Lessee's  obligations from any
person  other than Lessee  pending  approval or  disapproval  of an  assignment.
Neither  a delay in the  approval  or  disapproval  of such  assignment  nor the
acceptance  of Rent or  performance  shall  constitute  a waiver or  estoppel of
Lessor's right to exercise its remedies for Lessee's Default or Breach.

     (c) Lessor's consent to any assignment or subletting shall not constitute a
consent to any subsequent assignment or subletting.

     (d) In the event of any  Default  or Breach by Lessee,  Lessor may  proceed
directly  against  Lessee,  any  Guarantors or anyone also  responsible  for the
performance of Lessee's  obligations under the Lease,  including any assignee or
sublessee,  without first exhausting  Lessor's remedies against any other person
or entity responsible therefore to Lessor, or any security hold by Lessor.

     (e) Each request for consent to an  assignment  or  subletting  shall be in
writing, accompanied by information relevant to Lessor's determination as to the
financial and operational  responsibility  and  appropriateness  of the proposed
assignee  or  sublease,  including  but not limited to the  intended  use and/or
required  modification of the Premises, if any, together with a fee of $1,000 or
10% of the current  monthly Base Rent  applicable to the portion of the Premises
which is the  subject of the  proposed  assignment  or  sublease,  whichever  is
greater, as consideration for Lessor's  considering and processing said request.
Lessee agrees to provide Lessor with such other or additional information and/or
documentation as may be reasonably requested.

     (f) Any  assignee of, or subleases  under,  this Lease shall,  by reason of
accepting  such  assignment  or entering into such  sublease,  be deemed to have
assumed and agreed to conform  and comply  with each and every  term,  covenant,
condition and obligation  herein to be observed or perfumed by Lessee during the
term of said assignment or sublease, other than such obligations as are contrary
to or inconsistent  with provisions of an assignment or sublease to which Lessor
has specifically consented to in writing.

12.3 ADDITIONAL  TERMS AND CONDITIONS  APPLICABLE TO  SUBLETTING.  The following
     terms and conditions  shall apply to any subletting by Lessee of all or any
     part of the Premises and shall be deemed  included in all  subleases  under
     this Lease whether or not expressly incorporated therein:

     (a) Lessee hereby assigns and transfers to Lessor all of Lessee's  interest
in all Rent payable on any sublease,  and Lessor may collect such Rent and apply
same toward Lessee's obligations under this Lease; provided, however, that until
a Breach  shall occur in the  performance  of Lessee's  obligations,  Lessee may
collect  said  Rent.  Lessor  shall  not,  by  reason  of the  foregoing  or any
assignment of such sublease,  nor by reason of the collection of Rent, be deemed
liable to the sublessee far any failure of Lessee to perform and comply with any
of Lessee's obligations to such sublessee.  Lessee hereby irrevocably authorizes
and directs any such  sublessee,  upon  receipt of a written  notice from Lessor
stating that a Breach exists in the  performance of Lessee's  obligations  under
this Lease,  to pay to Lessor all Rent due and to become due under the sublease.
Sublessee shall rely upon any such notice from Lessor and shall pay all Rents to
Lessor  without  any  obligation  or right to inquire as to whether  such Breach
exists, notwithstanding any claim from Lessee to the contrary.

     (b) In the event of a Breach by Lessee, Lessor may, at its option,  require
sublessee  to attorn to  Lessor,  in which  event  Lessor  shall  undertake  the
obligations  of the sublessor  under such sublease from the time of the exorcise
of said option to the expiration of such  sublease;  provided,  however,  Lessor
shall not be liable  for any  prepaid  rents or  security  deposit  paid by such
sublessee  to such  sublessor  or for any prior  Defaults  or  Breaches  of such
sublessor.

     (c) Any matter  requiring  the  consent of the  sublessor  under a sublease
shall also require the consent of Lessor.

     (d) No  sublessee  shall  further  assign or sublet  all or any part of the
Premises without Lessor's prior written consent.

     (e)  Lessor  shall  deliver a copy of any  relics of  Default  or Breach by
Lessee to the sublessee,  who shall have the right to cure the Default of lessee
within the grace period, if any,  specified in such notice.  The subleases shall
have a right of  reimbursement  and offset from and against  Lessee for any such
Defaults cured by the sublessee.

13.  DEFAULT; BREACH; REMEDIES.

     13.1 DEFAULT;  BREACH. A "DEFAULT" is defined as a failure by the Lessee to
comply  with or perform  any of the terms,  covenants,  conditions  or Rules and
Regulations  under this Lease. A "BREACH" is defined as the occurrence of one or
more of the following  Defaults,  and the failure of Lessee to cure such Default
within any applicable grace period;

     (a) The  abandonment  of the  Premises;  or the  vacating  of the  Premises
without  providing a  commercially  reasonable  level of security,  or where the
coverage of the property insurance  described in Paragraph 8.3 is jeopardized as
a result  thereof,  or  without  providing  reasonable  assurances  to  minimize
potential vandalism.

     (b) The  failure  of Lessee  to make any  payment  of Rent or any  Security
Deposit required to be made by Lessee hereunder, whether to Lessor or to a third
party, when due, to provide reasonable  evidence of insurance or surety bond, or
to fulfill any obligation  under this Lease which endangers or threatens life or
property, where such failure continues for a period of 3 business days following
written notice to Lessee.

     (c) The failure by Lessee to provide  (i)  reasonable  written  evidence of
compliance with Applicable Requirements,  (ii) the service contracts,  (iii) the
rescission  of an  unauthorized  assignment  or  subletting,  (iv)  an  Estoppel
Certificate,  (v)  a  requested  subordination,  (vi)  evidence  concerning  any
guaranty and/or Guarantor, (vii) any document requested

                                 Page 13 of 21
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under Paragraph 41 (easements), or (viii) any other documentation or information
which  Lessor may  reasonably  require of Lessee  under the terms of this Lease,
where  any such  failure  continues  for a period of 10 days  following  written
notice to Lessee.

     (d) A  Default  by  Lessee  as  to  the  terms,  covenants,  conditions  or
provisions of this Lease,  or of the rules  adopted under  Paragraph 2.9 hereof,
other than those described in subparagraphs  13.1(a),  (b) or (c), above,  where
such Default  continues for a period of 30 days after written notice;  provided,
however,  that if the nature of Lessee's  Default is such that more than 30 days
are reasonably required for its cure, then it shall not be deemed to be a Breach
if  Lessee  Commences  such  cure  within  said  30 day  period  and  thereafter
diligently prosecutes such cure to completion.

     (e) The  occurrence of any of the following  events:  (i) the making of any
general arrangement or assignment for the benefit of creditors;  (ii) becoming a
"DEBTOR"  as  defined  in 11 U.S.C.  ss. 101 or any  successor  statute  thereto
(unless,  in thE case of a petition filed against Lessee,  the same is dismissed
within 60  days);  (iii)  the  appointment  of a  trustee  or  receiver  to take
possession of substantially all of Lessee's assets located at the Premises or of
Lessee's  interest in this Lease,  where  possession  is not  restored to Lessee
within 30 days; or (iv) the attachment,  execution or other judicial  seizure of
substantially  all of  Lessee's  assets  located at the  Premises or of Lessee's
interest in this Lease,  where such  seizure is not  discharged  within 30 days;
provided,  however,  in the event that any provision of this subparagraph (e) is
contrary to any applicable  law, such provision  shall be of no force or effect,
and not affect the validity of the remaining provisions.

     (f)  The  discovery  that  any  financial  statement  of  Lessee  or of any
Guarantor given to Lessor was matorially false.

     (g)  If the  performance  of  Lessee's  obligations  under  this  Lease  is
guaranteed:  (i) the death of a Guarantor, (ii) the termination of a Guarantor's
liability with respect to this Lease other than in accordance  with the terms of
such  guaranty,  (iii) a  Guarantor's  becoming  insolvent  or the  subject of a
bankruptcy filing,  (iv) a Guarantor's  refusal to honor the guaranty,  or (v) a
Guarantor's  breach of its guaranty  obligation on an  anticipatory  basis,  and
Lessee's failure,  within 60 days following written notice of any such event, to
provide written alternative assurance or security,  which, when coupled with the
then  existing  resources of Lessee,  equals or exceeds the  combined  financial
resources of Lessee and the Guarantors  that existed at the time of execution of
the Lease.

     13.2 REMEDIES.  If Lessee falls to perform any of its affirmative duties or
obligations,  within 10 days after  written  notice (or in case of an emergency,
without notice),  Lessor may, at its option,  perform such duty or obligation on
Lessee's  behalf,  including  but not  limited to the  obtaining  of  reasonably
required  bonds,  insurance  policies,  or  governmental  licenses,  permits  or
approvals. The costs and expenses of any such performance by Lessor shall be due
and payable by Lessee upon  receipt of invoice  therefor.  If any check given to
Lessor  by  Lessee  shall not be  honored  by the bank  upon  which it is drawn,
Lessor,  at its option,  may require all future payments to be made by Lessee to
be by cashier's  check.  In the event of a Breach,  Lessor may,  with or without
further  notice or demand,  and without  limiting  Lessor in the exercise of any
right or remedy which Lessor may have by reason of such Breach:

     (a)  Terminate  Lessee's  right to possession of the Premises by any lawful
means,  in which case this Lease shall  terminate  and Lessee shall  immediately
surrender  possession  to Lessor.  In such event  Lessor  shall be  entitled  to
recover  from  Lessee:  (i) the unpaid Rent which had been earned at the time of
termination;  (ii) the  worth at the time of award of the  amount  by which  the
unpaid  rent which would have been earned  after  termination  until the time of
award  exceeds the amount of such rental loss that the Lessee  proves could have
been reasonably  avoided;  (iii) the worth at the time of award of the amount by
which  the  unpaid  rent for the  balance  of the term  after  the time of award
exceeds  the  amount  of such  rental  loss  that  the  Lessee  proves  could be
reasonably avoided; and (iv) any other amount necessary to compensate Lessor for
all the  detriment  proximately  caused by the  Lessee's  failure to perform its
obligations  under this Lease or which in the ordinary course of things would be
likely to result therefrom,  including but not limited to the cost of recovering
possession  of  the  Premises,   expenses  of  reletting,   including  necessary
renovation and alteration of the Premises,  reasonable attorneys' fees, and that
portion of any leasing  commission  paid by Lessor in connection with this Lease
applicable to the unexpired  term of this Lease.  The worth at the time of award
of the  amount  returned  to in  provision  (iii) of the  immediately  preceding
sentence  shall be computed by  discounting  such amount at the discount rate of
the Federal  Reserve Bank of the District  within which the Premises are located
at the time of award plus one  percent.  Efforts by Lessor to  mitigate  damages
caused by  Lessee's  Breach of this  Lease  shall  not waive  Lessor's  right to
recover  damages under  Paragraph 12. If  termination  of this Lease is obtained
through the provisional remedy of unlawful detainer, Lessor shall have the right
to recover in such  proceeding  any unpaid Rent and  damages as are  recoverable
therein, or Lessor may reserve the right to recover all or any part thereof in a
separate suit. If a notice and grace period  required  under  Paragraph 13.1 was
not previously  given, a notice to pay rent or quit, or to perform or quit given
to Lessee under the unlawful  detainer  statute shall also constitute the notice
required by Paragraph  13.1. In such case, the applicable  grace period required
by Paragraph 13.1 and the unlawful detainer statute shall run concurrently,  and
the  failure of Lessee to cure the  Default  within the  greater of the two such
grace periods shall  constitute  both an unlawful  detainer and a Breach of this
Lease entitling Lessor to the remedies provided for in this Lease and/or by said
statute.

     (b)  Continue the Lease and Lessee's  right to  possession  and recover the
Rent as it becomes due, in which event Lessee may sublet or assign, subject only
to reasonable  limitations.  Acts of maintenance,  efforts to relet,  and/or the
appointment  of  a  receiver  to  protect  the  Lessor's  interests,  shall  not
constitute a termination of the Lessee's right to possession.

     (c) Pursue any other  remedy now or hereafter  available  under the laws or
judicial decisions of the state wherein the Premises are located. The expiration
or  termination  of this  Lease  and/or the  termination  or  Lessee's  right to
possession   shall  not  relieve  Lessee  from  liability  under  any  indemnity
provisions  of this Lease as to matters  occurring  or accruing  during the term
hereof or by reason of Lessee's occupancy of the Premises.

                                 Page 14 of 21
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     13.3 INDUCEMENT  RECAPTURE.  Any agreement for free or abated rent or other
charges,  or for the  giving or paying by Lessor to or for Lessee of any cash or
other bonus,  inducement or consideration for Lessee's entering into this Lease,
all of which concessions are hereinafter referred to as "INDUCEMENT PROVISIONS,"
shall be deemed  conditioned upon Lessee's full and faithful  performance of all
of the terms,  covenants and conditions of this Lease. Upon Breach of this Lease
by Lessee, any such Inducement  Provision shall  automatically be deemed deleted
from this Lease and of no further force or effect,  and any rent,  other charge,
bonus,  inducement or consideration  theretofore abated, given or paid by Lessor
under such an  Inducement  Provision  shall be  immediately  due and  payable by
Lessee to Lessor,  notwithstanding any subsequent cure of said Breach by Lessee.
The  acceptance by Lessor of rent or the cure of the Breach which  initiated the
operation  of this  paragraph  shall  not be  deemed a waiver  by  Lessor of the
provisions of this paragraph unless  specifically so stated in writing by Lessor
at the time of such acceptance.

     13.4 LATE CHARGES.  Lessee hereby  acknowledges that late payment by Lessee
of Rent will cause  Lessor to incur costs not  contemplated  by this Lease,  the
exact  amount of which will be  extremely  difficult  to  ascertain.  Such costs
include,  but are not limited to,  processing and accounting  charges,  and late
charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent
shall not be  received by Lessor  within 5 days after such amount  shall be due,
then, without any requirement for notice to Lessee, Lessee shall pay to Lessor a
one-time late charge equal to 10% of each such overdue amount or $100, whichever
is greater. The parties hereby agree that such late charge represents a fair and
reasonable  estimate  of the  costs  Lessor  will  incur by  reason of such late
payment. Acceptance of such late charge by Lessor shall in no event constitute a
waiver of Lessee's  Default or Breach with respect to such overdue  amount,  nor
prevent the exercise of any of the other rights and remedies granted  hereunder.
In the event that a late charge is payable hereunder,  whether or not collected,
for 3 consecutive  installments of Base Rent, then notwithstanding any provision
of this Lease to the contrary,  Base Rent shall, at Lessor's option,  become due
and payable quarterly in advance.

     13.5 INTEREST.  Any monetary payment due Lessor hereunder,  other than late
charges, not received by Lesser, when due as to scheduled payments (such as Base
Rent) or within 30 days following the date on which it was due for non scheduled
payment,  shall bear interest from the date when due, as to scheduled  payments,
or the 31st day  after it was due as to  non-scheduled  payments.  The  interest
("INTEREST")  charged  shall be equal to the  prime  rate  reported  in the Wall
Street  Journal  as  published  closest  prior to the date when due plus 4%, but
shall not  exceed  the  maximum  rate  allowed  by law.  Interest  is payable in
addition to the potential late charge provided for in Paragraph 13.4.

     13.6 BREACH BY LESSOR.

     (a)  NOTICE OF BREACH.  Lessor  shall not be deemed in breach of this Lease
unless Lessor fails within a reasonable  time to perform an obligation  required
to be performed by Lessor.  For purposes of this  Paragraph,  a reasonable  time
shall in no event be less than 30 days after  receipt by Lessor,  and any Lender
whose name and  address  shall have been  furnished  Lessee in writing  for such
purpose,  of written notice specifying wherein such obligation of Lessor has not
been performed;  provided, however, that if the nature of Lessor's obligation is
such that more than 30 days are reasonably  required for its  performance,  then
Lessor shall not be in breach if  performance  is  commenced  within such 30 day
period and thereafter diligently pursued to completion.

     (b)  PERFORMANCE  BY LESSEE ON BEHALF OF LESSOR.  In the event that neither
Lessor nor Lender cures said breach within 30 days after receipt or said notice,
or if having commenced said cure they do not diligently pursue it to completion,
then Lessee may elect to cure said  breach at  Lessee's  expense and offset from
Rent an amount  equal to the  greater of one month's  Base Rent or the  Security
Deposit, and to pay an excess of such expense under protest,  reserving Lessee's
right to reimbursement from Lessor.  Lessee shall document the cost of said cure
and supply said documentation to Lessor.

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

15.  BROKERAGE FEES.

     15.1  ADDITIONAL  COMMISSION.  In addition to the payments owed pursuant to
Paragraph  1.10  above,  and unless  Lessor and the Brokers  otherwise  agree in
writing,  Lessor agrees that: (a) if Lessee exercises any Option,  (b) if Lessee
acquires  from  Lessor any rights to the  Premises  or other  premises  owned by
Lessor and located within the Project, (c) if Lessee remains in

                                 Page 15 of 21
<PAGE>

possession of the Promises,  with the consent of Lessor, after the expiration of
this Lease, or (d) if Base Rent is increased,  whether by agreement or operation
of an  escalation  clause  herein,  then,  Lessor  shall  pay  Brokers  a fee in
accordance  with  the  schedule  of the  Brokers  in  effect  at the time of the
execution of this Lease.

     15.2  ASSUMPTION  OF  OBLIGATIONS.  Any  buyer or  transferee  of  Lessor's
interest  in this  Lease  shall he deemed to have  assumed  Lessor's  obligation
hereunder.  Brokers  shall be third party  beneficiaries  of the  provisions  of
Paragraphs  1.10,  15, 22 and 31. If Lessor  fails to pay to Brokers any amounts
due as and for  brokerage  fees  pertaining  to this Lease  when due,  then such
amounts shall accrue interest.  In addition,  if Lessor fails to pay any amounts
to Lessee's  Broker when due,  Lessee's Broker may send written notice to Lessor
and Lessee of such  failure and if Lessor  fails to pay such  amounts  within 10
days after sold  notice,  Lessee  shall pay said monies to its Broker and offset
such amounts against Rent. In addition,  Lessee's Broker shall be deemed to be a
third party  beneficiary  of any  commission  agreement  entered  into by and/or
between  Lessor and Lessor's  Broker for the limited  purpose of collecting  any
brokerage fee owed.

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

16.  ESTOPPEL CERTIFICATES.

     (a) Each Party (as  "RESPONDING  PARTY") shall within 10 days after written
notice from the other Party (the "Requesting  Party")  execute,  acknowledge and
deliver to the  Requesting  Party a statement  in writing in form similar to the
then  most  current  "Estoppel  Certificate"  form  published  by  the  American
Industrial  Real  Estate   Association,   plus  such   additional   information,
confirmation and/or statements as may be reasonably  requested by the Requesting
Party.

     (b) If the  Responding  Party shall fail to execute or deliver the Estoppel
Certificate  within  such 10 day  period,  the  Requesting  Party may execute an
Estoppel  Certificate  stating  that,  (i) the Lease is in full force and effect
without  modification except as may be represented by the Requesting Party, (ii)
there are no uncured defaults in the Requesting Party's  performance,  and (iii)
if Lessor is the Requesting  Party, not more than one month's rent has been paid
in advance.  Prospective purchaser and encumbrances may rely upon the Requesting
Party's  Estoppel  Certificate,  and the Responding Party shall be estoppel from
denying the truth of the facts contained in said Certificate.

     (c) If Lessor desires to finance,  refinance,  or sell the Premises, or any
part thereof, Lessee and all Guarantors shall deliver to any potential lender or
purchaser  designated by Lessor such  financial  statements as may be reasonably
required  by such  lender or  purchaser,  including  but not limited to Lessee's
financial  statements for the past 3 years. All such financial  statements shall
by received by Lessor and such lender or  purchaser in  confidence  and shall be
used only for the purposes heroin set forth.

17. DEFINITION OF LESSOR.  The term "Lessor" as used herein shall mean the owner
or owners at the time in question of fee title to the Premises, or, it this is a
sublease,  of the  Lessee's  interest  in the  prior  lease.  In the  event of a
transfer of Lessor's  title or  interest in the  Premises or this Lease.  Lessor
shall  deliver to the  transferee  or assignee (in cash or by credit) any unused
Security  Deposit held by Lessor.  Except as provided in Paragraph 15, upon such
transfer or assignment and delivery of the Security Deposit,  as aforesaid,  the
prior Lessor shall be relieved of all liability with respect to the  obligations
and/or  covenants  under this Lease  thereafter  to be  performed by the Lessor.
Subject to the foregoing,  the obligations  and/or covenants in this Lease to be
performed  by the Lessor  shall be binding  only upon the Lessor as  hereinabove
defined.  Notwithstanding  the above, and subject to the provisions of Paragraph
20 below,  the original Lessor under this Lease,  and all subsequent  holders of
the Lessor's  interest in this Lease shall remain  liable and  responsible  with
regard to the potential duties and liabilities of Lessor pertaining to Hazardous
Substances as outlined in Paragraph 6.2 above.

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

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

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

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

                                  Page 16 of 21
<PAGE>

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

23.  NOTICES.

     23.1 NOTICE  REQUIREMENTS.  All notices required or permitted this Lease or
applicable law shall be in writing and may be delivered in person (by hand or by
courier) or may be sent by regular,  certified or registered mail or U.S. Postal
Service Express Mail, with postage prepaid,  or by facsimile  transmission,  and
shall be  deemed  sufficiently  given if served  in a manner  specified  in this
Paragraph 23. The addresses noted adjacent to a Party's  signature on this Lease
shall be that Party's  address for delivery or mailing of notices.  Either Party
may by written  notice to the other  specify a  different  address  for  notice,
except that upon Lessee's taking possession of the Premises,  the Premises shall
constitute Lessee's address for notice. A copy of all notices to Lessor shall be
concurrently  transmitted  to such party or parties at such  addresses as Lessor
may from time to time hereafter designate in writing.

     23.2 DATE OF NOTICE.  Any notice  sent by  registered  or  certified  mail,
return receipt requested, shall be deemed given on the date of delivery 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 is required herein and mailed with postage prepaid.  Notices delivered
by United  States  Express Mail or overnight  courier  that  guarantee  next day
delivery shall be deemed given 24 hours after delivery of the same to the Postal
Service or courier.  Notices  transmitted by facsimile  transmission  or similar
means  shall  be  deemed  delivered  upon  telephone   confirmation  of  receipt
(confirmation  report from fax machine is  sufficient),  provided a copy is also
delivered via delivery or mail.  If notice is received on a Saturday,  Sunday or
legal holiday, it shall be deemed received on the next business day.

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

25.  DISCLOSURES REGARDING THE NATURE OF A REAL ESTATE AGENCY RELATIONSHIP.

     (a) When  entering into a discussion  with a real estate agent  regarding a
real estate  transaction,  a Lessor or Lessee should from the outset  understand
what  type of agency  relationship  or  representation  it has with the agent or
agents in the transaction.  Lessor and Lessee  acknowledge  being advised by the
Brokers in this transaction, as follows:

          (i)  LESSOR'S  AGENT. A Lessor's agent under a listing  agreement with
               the  Lessor  acts as the agent for the  Lessor  only.  A Lessor's
               agent or subagent has the following affirmative  obligations;  TO
               THE LESSOR: A fiduciary duty of utmost care, integrity,  honesty,
               and  loyalty in dealings  with the Lessor.  TO THE LESSEE AND THE
               Lessor:  a. Diligent  exercise of  reasonable  skills and care in
               performance of the agent's  duties.  b. A duty of honest and fair
               dealing and good faith.  c. A duty to disclose all facts known to
               the agent  materially  affecting the value or desirability of the
               property that are not known to, or within the diligent  attention
               and  observation  of, the Parties.  An agent is not  obligated to
               reveal to either Party any confidential information obtained from
               the other Party which does not involve the affirmative duties set
               forth above.

          (ii) LESSEE'S AGENT. An agent can agree to act as agent for the Lessee
               only. In these  situations,  the agent is not the Lessor's agent,
               even if by  agreement  the agent  may  receive  compensation  for
               services rendered,  either in full or in part from the Lessor. An
               agent  acting  only for a Lessee  has the  following  affirmative
               obligations.  TO THE  LESSEE:  A fiduciary  duty of utmost  care,
               integrity,  honesty,  and loyalty in dealings with the Lessee. TO
               THE LESSEE AND THE LESSOR:  a.  Diligent  exercise of  reasonable
               skills and care in performance of the agent's  duties.  b. A duty
               of honest and fair dealing and good faith.  c. A duty to disclose
               all facts known to the agent  materially  affecting  the value or
               desirability of the property that are not known to, or within the
               diligent  attention and observation of, the Parties.  An agent is
               not  obligated  to  reveal  to  either  party  any   confidential
               information  obtained from the other Party which does not involve
               the affirmative duties set form above.

          (iii)AGENT  REPRESENTING  BOTH LESSOR AND LESSEE.  A real estate agent
               either acting directly or through one or more associate licenses,
               can  legally  be the agent of both the Lessor and the Lessee in a
               transaction,  but only with the knowledge and consent of both the
               Lessor and the Lessee. In a dual agency situation,  the agent has
               the following affirmative  obligations to both the Lessor and the
               Lessee:  a. A fiduciary duty of utmost care,  integrity,  honesty
               and loyalty in the dealings with either Lessor or the Lessee.  b.
               Other  duties to the  Lessor  and the  Lessee as staled  above in
               subparagraphs (i) or (ii) in

                                 Page 17 of 21
<PAGE>

               representing  both Lessor and  Lessee,  the agent may not without
               the express  permission of the respective Party,  disclose to the
               other  Party that the Lessor  will  accept rent in an amount less
               than that  indicated in the listing or that the Lessee is willing
               to pay a higher rent than that  offered.  The above duties of the
               agent in a real  estate  transaction  do not  receive a Lessor or
               Lessee from the  responsibility  to protect their own  interests.
               Lessor and Lessee should  carefully read all agreements to assure
               that  they  adequately   express  their   understanding   of  the
               transaction.  A real estate agent is a person qualified to advise
               about real estate.  If legal or tax advice is desired,  consult a
               competent professional.

     (b) Brokers  have no  responsibility  with respect to any default or breach
hereof by either Party,  The  liability  (including  court costs and  attorneys'
fees),  of any Broker  with  respect to any  breach of duty,  error or  omission
relating to this Lease shall not exceed the fee received by such Broker pursuant
to this Lease; provided, however, that the foregoing limitation on each Broker's
liability shall not be applicable to any gross negligence or willful  misconduct
of such Broker.

     (c) Buyer and seller  agree to  identify to Brokers as  "Confidential"  any
communication  or information  given Brokers that is considered by such Party to
be confidential.

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

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

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

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

30.  SUBORDINATION; ATTORNMENT; NON-DISTURBANCE.

     30.1  SUBORDINATION.  This Lease and any  Option  granted  hereby  shall be
subject and  subordinate to any ground lease,  mortgage,  deed of trust or other
hypothecation  or security  device  (collectively,  "Security  Device"),  new or
hereafter placed upon the Premises, to any end all advances made on the security
thereof,  and to all renewals,  modifications,  and extensions  thereof.  Lessee
agrees that the  holders of any such  Security  Devices (in this Lease  together
referred to as "Lender") shall have no liability or obligation to perform any of
the  obligations  of Lessor under this Lease.  Any Lender may elect to have this
Lease  and/or any Option  granted  hereby  superior to the lien of its  Security
Device by giving written notice thereof to Lessee, whereupon this Lease and such
Options  shall be deemed  prior to such  Security  Device,  notwithstanding  the
relative dates of the documentation or recordation thereof.

     30.2  ATTORNMENT.  Subject to the  non-disturbance  provisions of Paragraph
30.3,  Lessee  agrees to attorn  to a Lender  or any  other  party who  acquires
ownership of the Premises by reason of a foreclosure of a Security  Device,  and
that in the event of such  foreclosure,  such new owner shall not; (a) be liable
for any act or omission of any prior lessor or with respect to events  occurring
prior to  acquisition  of  ownership;  (b) be subject to any offsets or defenses
which Lessee might have against any prior lessor,  (c) be bound by prepayment of
more than one  month's  rent,  or (d) be liable for the  return of any  security
deposit paid to any prior lessor.

     30.3 NON  DISTURBANCE.  With  respect to Security  Devices  entered into by
Lessor after the execution of this Lease,  Lessee's  subordination of this Lease
shall  be  subject  to  receiving  a  commercially  reasonable   non-disturbance
agreement (a "Non-Disturbance  Agreement") from the Lender which Non-Disturbance
Agreement  provides  that Lessee's  possession of the Premises,  and this Lease,
including  any options to extend the term hereof,  will not be disturbed so long
as  Lessee  is not in Breach  hereof  and  attorns  to the  record  owner of the
Premises.  Further,  within 60 days,  after the execution of this Lease,  Lessor
shall  use its  commercially  reasonable  efforts  to  obtain a  Non-Disturbance
Agreement from the holder of any  pre-existing  Security Device which is secured
by  the   Premises.   In  the  event  that  Lessor  is  unable  to  provide  the
Non-Disturbance  Agreement  within  said 60 days,  then  Lessee may, at Lessor's
opinion,  directly contact Lender and attempt to negotiate for the execution and
delivery of a Non-Disturbance Agreement.

     30.4 SELF-EXECUTING. The agreements contained in this Paragraph 30 shall be
effective  without the execution of any further  documents;  provided,  however,
that,  upon written  request from Lessor or a Lender in connection  with a sale,
financing or refinancing  of the Premises,  Lessee and Lessor shall execute such
further  writings as may be  reasonably  required  to  separately  document  any
subordination, attornment and/or Non-Disturbance Agreement provided herein.

31.  ATTORNEYS'  FEES.  If any  Party or Broker  brings an action or  proceeding
involving  the  Premises  whether  founded in tort,  contract  or equity,  or to
declare rights  hereunder,  the Prevailing  Party (as hereafter  defined) in any
such  proceeding,  action,

                                 Page 18 of 21
<PAGE>

or appeal hereon, 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 proceedings is pursued to decision or judgment.  The term  "PREVAILING
PARTY" shall include,  without  limitation,  a Party or Broker who substantially
obtains or defeats the rollof 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,  Lessor shall be entitled to
attorneys' fees,  costs and expenses  incurred in the preparation and service of
notices of Default and consultations in connection  therewith,  whether or not a
legal  action is  subsequently  commenced  in  connection  with such  Default or
resulting Breach ($200 is a reasonable  minimum per occurrence for such services
and consultation).

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

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

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

35.  TERMINATION;  MERGER.  Unless  specifically  stated otherwise in writing by
Lessor,  the  voluntary or other  surrender of this Lease by Lessee,  the mutual
termination or cancellation hereof, or a termination hereof by Lesser for Breach
by Lessee,  shall  automatically  terminate any sublease or lesser estate in the
Premises;  provided,  however,  that Lessor may elect to continue  anyone or all
existing subtenancies.  Lessor's failure within 10 days following any such event
to elect to the  contrary  by written  notice to the  holder of any such  lesser
interest,  shall constitute  Lessor's election to have such event constitute the
termination of such interest.

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

37.  GUARANTOR.

     37.1 EXECUTION.  The  Guarantors,  if any, shall each execute a guaranty in
the  form  most  recently  published  by the  American  Industrial  Real  Estate
Association,  and each such Guarantor shall have the same  obligations as Lessee
under this Lease.

     37.2 DEFAULT.  It shall constitute a Default of the Lessee if any Guarantor
fails or refuses,  upon request to provide:  a) evidence of the execution of the
guaranty.  including the authority of the party signing on Guarantor's behalf to
obligate Guarantor, and the case of a corporate Guarantor, a certified copy of a
resolution of its board of directors  authorizing  the moving of such  guaranty,
(b) currant financial statements,  (c) an Estoppel  Certificate,  or (d) written
confirmation that the guaranty is still in effect.

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

39.  OPTIONS.  If Lessee is  granted  an  option,  as  defined  below,  then the
     following provisions shall apply.

     39.1  DEFINITION.  "Option" shall mean: (a) the right to extend the term of
or renew  this  Lease or to extend or renew any lease  that  Lessee has an other
property  of  Lessor,  (b) the right of first  refusal  or first  offer to lease
either the  Premises or other  property of Lessor;  (c) the right to purchase or
the right of first refusal to purchase the Premises or other property of Lessor.

                                 Page 19 of 21
<PAGE>

         39.2 OPTIONS PERSONAL TO ORIGINAL LESSEE. Any Option granted to Lessee
in this Lease is personal to the original Lessee, and cannot be assigned or
exercised by anyone other than said original Lessee and only while the original
Lessee is in full possession of the Premises and, if requested by Lessor, with
Lessee certifying that Lessee has no intention of thereafter assigning or
subletting.

     39.3 MULTIPLE OPTIONS. In the event that Lessee has any multiple Options to
extend or renew this Lease, a later Option cannot be exercised  unless the prior
Options have been validly exercised.

     39.4 EFFECT OF DEFAULT ON OPTIONS.

     (a) Lessee shall have no right to exercise an Option: (i) during the period
commencing  with the giving of any notice of Default and  continuing  until said
Default is cured,  (ii)  during  the period of time any Rent is unpaid  (without
regard to whether notice thereof is given Lessee),  (iii) during the time Lessee
is in Breach of this Lease, or (iv) in the event that Lessee has been given 3 or
more notices of separate Default,  whether or not the Defaults are cured, during
the 12 month period immediately preceding the exercise of the Option.

     (b) The period of lime within which an Option may be exercised shall not be
extended  or  enlarged  by reason of  Lessee's  inability  to exercise an Option
because of the provisions of Paragraph 39.4(a).

     (c) An  Option  shall  terminate  and be of no  further  force  or  effect,
notwithstanding  Lessee's duo and timely exercise of the Option,  if, after such
exercise and prior to file  commencement  of the extended term, (i) Lessee falls
to pay Rent for a period of 30 days after such Rent  becomes  due  (without  any
necessity  of Lesser to give notice  thereof),  (ii) Lessor gives to Lessee 3 or
more notices of separate Default during any 12 month period,  whether or not the
Defaults are cured, or (iii) if Lessee commits a Breach of this Lease.

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

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

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

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

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

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

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

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

                                 Page 20 of 21
<PAGE>

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

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

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

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

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

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

WARNING: IF THE PREMISES ARE LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN
PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE
STATE IN WHICH THE PREMISES ARE LOCATED.

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

<TABLE>
<CAPTION>

<S>     <C>    <C>    <C>    <C>    <C>    <C>
Executed at:                                                  Executed at:      NEWPORT BEACH, CA
            -----------------------------------------                     --------------------------------
on:                                                           on:      10/23/2003
   --------------------------------------------------            -----------------------------------------

By LESSOR:                                                    By LESSEE:
14631-14641 ARMENTA, LLC                                      AEGIS ASSESSMENTS, INC.
-----------------------------------------------------         --------------------------------------------
-----------------------------------------------------         --------------------------------------------

By:                                                           By:
   --------------------------------------------------            -----------------------------------------
Name Printed:     DANIEL BANAYAN                              Name Printed:     ERIC JOHNSON
             ----------------------------------------                      -------------------------------
Title:   MANAGING MEMBER                                      Title:   PRESIDENT
      -----------------------------------------------               --------------------------------------

By:                                                           By:      /S/ RICHARD REINCKE
   --------------------------------------------------            -----------------------------------------
Name Printed:                                                 Name Printed:     RICHARD REINCKE
             ----------------------------------------                      -------------------------------
Title:                                                        Title:   SECRETARY
      -----------------------------------------------               --------------------------------------
Address:  14631 ARMINTA ST                                    Address: 4100 NEWPORT PLACE, SUITE 660
        ---------------------------------------------                 ------------------------------------
  VAN NUYS, CA 91402                                            NEWPORT BEACH, CA 92660
-----------------------------------------------------         --------------------------------------------

-----------------------------------------------------         --------------------------------------------
Telephone:  (818) 906-9803                                    Telephone: (877) 718-7599
          -------------------------------------------                   ----------------------------------
Facsimile: (818) 988-7671                                     Facsimile: (949) 250-8559
          -------------------------------------------                   ----------------------------------
Federal ID No.                                                Federal ID No.    72-1525702
               --------------------------------------                        -----------------------------
</TABLE>

                                 Page 21 of 21
<PAGE>

                           ADDENDUM TO STANDARD LEASE

This ADDENDUM TO STANDARD  LEASE (the  "Addendum") is hereby made a part of that
certain  Standard  Industrial/Commercial  Multi-Tenant  Lease-Gross  (the "Lease
Form")  dated as of 10 9 03,  for  those  certain  Premises  described  as 14635
Arminta  St, Van Nuys,  CA 91402 made and entered  into by and between  14631-41
Armenia Street, LLC ("Lessor") and Aegis Assessments Inc ("Lessee").

All terns used hereunder which are defined in the Lease Form shall have the same
meanings herein as are ascribed to such terms in the Lease Form. If there is any
conflict  between the  provisions  of this  Addendum and the  provisions of fire
Lease Form, this Addendum shall control. This Addendum,  the Lease Form, and all
other  Exhibits  and  Addenda   attached   thereto  arc  sometimes   hereinafter
collectively referred to as the "Lease."

The following additional provisions are hereby made a part of the Lease:

50   PAYEE:    Unless  otherwise  expressly  notified in writing by Lessor,  all
               Base Rent and other amounts due under this Lease shall be paid by
               check payable to 14641-41  Armenia  Street,  LLC at the following
               address:

                  14631-41 Armenia Street, LLC
                  14631 Arminta Street
                  Van Nuys, CA 91402

     No other Payee is acceptable to Lessor. Any improperly prepared checks may,
     at Lessor's option,  be returned to Lessee.  If the properly prepared check
     is received by Lessor after the fifth day of the month,  a late fee will be
     assessed in accordance  with the  provisions of Paragraph 13.4 of the Lease
     Form.  Ali  such  payments  shall  be  properly  posted  in the US  Mail or
     overnight  delivery  service in sufficient time to be received by Lessor on
     the first day of each month during the Term hereof.

51   EARLY OCCUPANCY:  Upon full execution of the Lease by both parties,  and
     the payment of all required advanced rentals and deposits, plus evidence of
     insurance, the lessee shall be permitted to take physical possession of the
     Premises.  During the period of time prior to the  commencement  date of de
     Lease, the Lessee shall be bound by all the terms, covenants and conditions
     of the Lease except for the payment of rent.

52   TENANT IMPROVEMENTS: Lessor shall at Lessor's sole cast and expense reopen
     the existing pocket door for Lessee's use

EXHIBIT A       SITE/FLOOR PLAN Attached hereto and made a part hereof.
                ---------------

EXHIBIT B       SIGN STANDARD Attached hereto and made a part hereof.
                -------------

EXHIBIT C       RULES AND REGULATIONS Attached hereto and made a part hereof.
                ---------------------

<PAGE>

                           EXHIBIT "A" SITE/FLOOR PLAN
                             TO LEASE DATED 10-9-03

                              BETWEEN THE PARTIES:
                    14631-41 ARMENTA STREET, LLC, LESSOR AND
                         AEGIS ASSESSMENTS INC., LESSEE

                       FOR THE LOCATION COMMONLY KNOWN AS:
                                14635 ARMINTA ST.
                               VAN NUYS, CA 91402

<PAGE>

                           EXHIBIT "A" SITE/FLOOR PLAN
                             TO LEASE DATED 10-9-03

                              BETWEEN THE PARTIES:
                    14631-41 ARMENTA STREET, LLC, LESSOR AND
                         AEGIS ASSESSMENTS INC., LESSEE

                       FOR THE LOCATION COMMONLY KNOWN AS:
                                14635 ARMINTA ST.
                               VAN NUYS, CA 91402

<PAGE>

                            EXHIBIT "B" SIGN STANDARD
                             TO LEASE DATED 10 9 03

                              BETWEEN THE PARTIES:
                    14631-41 ARMENIA STREET, LLC, LESSOR AND
                         AEGIS ASSESSMENTS INS., LESSEE

                       FOR THE LOCATION COMMONLY KNOWN AS:
                                14635 ARMINTA ST.
                               VAN NUYS, CA 91402

These criteria have been established for the purpose of assuring an outstanding
industrial complex and for the mutual benefits of all tenants. Conformance will
be strictly enforced, and any installed non-conforming or unapproved signs must
be brought into conformance at the expense of the Lessee.

A.   GENERAL REQUIREMENTS

     1.   The Lessee shall  submit a sketch of its  proposed  sign to the Lessor
          for approval.

     2.   All signs shall be constructed and installed at Lessee's expense.

     3.   Lessee shall be responsible for the fulfillment of all requirements of
          these criteria.

B.   GENERAL SPECIFICATIONS

     1.   No electrical or audible signs will be permitted.

     2.   Sign copy will be restricted  to company name and logo only,  and must
          include the English translation where applicable.

     3.   Surface  mounted  sign with  dimensions  not to exceed four (4) square
          feet.

     4.   The  bottom of the sign is to be  positioned  nine (9) feet  above the
          ground.

     5.   The sign  must  have a size,  shape,  composition,  design,  and color
          specified by city ordinance and by Lessor.

     6.   Placement of the sign and method or attachment to the building will be
          directed by the Lessor.

     7.   The signs shall be  maintained  by Lessee during the term of the Lease
          and Lessee  shall make  repairs as required  within  forty-eight  (48)
          hours after notice from Lessor.

     8.   Lessee shall remove its sign upon vacating the Premises.  Upon removal
          of any  sign,  any  damage to the  building  must be  repaired  by the
          Lessee.

<PAGE>

                        EXHIBIT "C" RULES AND REGULATIONS
                             TO LEASE DATED 10-9-03
                               BETWEEN THE PARTIES
                    14631-41 ARMENTA STREET, LLC, LESSOR AND
                          AEGIS ASSESSMENTS INC, LESSEE

                       FAR THE LOCATION COMMONLY KNOWN AS:
                                14635 ARMINTA ST.
                               VAN NUYS, CA 91402

The rules and  regulations  set forth  herein  below ere a part of that  certain
Lease to which these rules and regulations are an Exhibit C and into which lease
those rules and regulations are hereby incorporated by this reference:

1.   The sidewalk  entrances  and Common Areas shall not 6e obstructed by any of
     the Lessons or used by them for any purpose other than ingress or egress to
     and from heir respective Lease premises. Lease will not place or allow m be
     placed in these areas any waste paper,  dust,  garbage,  refuse or anything
     whatsoever  that  would tend to snake  them  unclear  of untidy,  or binder
     ingress or egress to other Lessees.

2.   All garbage rind refuse shall be kept m the kind of container  specified by
     Lessor,  and shall be placed  under  compaction  with all boxes broken open
     outside of premises, in those areas prepared for collection,  in the manner
     and at the times and places specified by Lessor.

3.   No aerial shall be erected on the roof or exterior  walls of the  premises,
     or on the ground  without,  in each  instance,  the written  consent of the
     Lessor.  Any aerial so  installed  without such  written  consent  shall be
     subject to removal without notice.

4.   No loudspeakers,  television, photographs, radios or other devices shall be
     used in such a manner as to heard or seen outside of the premises.

5.   The windows that reflect or admit light shall not be covered or  obstructed
     by any of the Lessees.

6.   All water  apparatus shall not be used for any purpose other than those for
     which they were constructed. Any damages resulting by misuse shall be borne
     by the Lessee by whom or by whose agents, servants or employees the same is
     caused.  The Lessee  shall not let the water run unless in actual use,  nor
     shall they deface any part of the Leased Premises or the project.

7.   No Lessee shall do or permit  anything to be done in the Leased Premises or
     bring or keep  anything  therein  which shall  increase the risk of fire or
     obstruct or interfere  with the rights of other Lessee or violate or set at
     variance  with  the laws  relating  m fee or with  the  regulations  of the
     Department or the Board of Health of the jurisdiction.

8.   Lessees, their employees, agents or servants shall not interfere with other
     Lessees or those having business with such Lessees

9.   Nothing shall be thrown by the Lessees, their employees,  agent or servants
     out of windows  or doors.  Nothing  shall be stored or left  outside of the
     Leased Premises.

10.  No birds or animals shall be kept in or about the Lease Premises.

11.  No one shall use the Leased Premises for sleeping apartments or residential
     purposes,  or for the  storage  of  effects  or  articles  other than those
     inquired far business purposes.

12.  It shall be the duty of the respective Lessees to assist and cooperate with
     the  Lessor  in  preventing   injury  to  the  premises   demised  to  them
     respectively.

13.  No inflammable oils or other inflammable,  dangerous or explosive materials
     shall be kept or permitted to be kept in or outside the Leased Premises.

14.  Lessees shall give Lessor prompt notice of any accident to or any defect in
     the plumbing,  climate control,  mechanical or electrical  apparatus or any
     other part of the Lease Premises or the project.

<PAGE>

15.  Lessees shall not make,  paint,  drill into or in any way deface the walls,
     ceilings,  partitions, floors or other parts of the leased premises and the
     Project except with the prior written consent of Lessor.

16.  Lessees will not do or omit to do or permit to be done or omitted  anything
     upon or in respect of the leased  Premises  the doing or  emission of which
     (us the case may be) shall be or result in a nuisance.

17.  Lessees  agrees  not b  overburden  the  parking  facilities  and agrees to
     cooperate  with the Lessor and other Lessees in the use of the  facilities.
     Lessee  stall  not  park any  vehicle  within  the  project  parking  areas
     displaying  advertising  of my kind.  Lessor  reserves  the  rights  in its
     absolute  discretion  to  determine  when parking  conditions  are becoming
     crowded and in such event,  to  allocate,  parking  among  Lessees,  and at
     Lessor's election, to locate and from time m time, to relocate such spaces.

18.  Lessor shall have the right to make such other and further reasonable rules
     and  regulations as in its judgment may from time to time be needed for the
     safety,  care,  cleanliness  and appearance of the leased  Premises and the
     Meet and for the  preservation  of good order therein and the same shall be
     kept and observed by the lessees, their employees, agents and servants.

19.  Lessees agrees to the foregoing Rules and Regulations which are hereby made
     a part of their Leases, and each of them agrees that any infraction of them
     shall  constitute  an event of default under Article 13 of their Leases and
     all of the  provisions  of Article 13 of their  Leases  shall apply to such
     event of default.

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