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                                                                   EXHIBIT 10.67

                       SOUTHERN CALIFORNIA CHAPTER OF THE
                 SOCIETY OF INDUSTRIAL AND OFFICE REALTORS, INC.

                          INDUSTRIAL REAL ESTATE LEASE
                            (SINGLE-TENANT FACILITY)

ARTICLE ONE: BASIC TERMS

     This Article One contains the Basic Terms of this Lease between the
Landlord and Tenant named below. Other Articles, Sections and Paragraphs of the
Lease referred to in this Article One explain and define the Basic Terms and are
to be read in conjunction with the Basic Terms.

     Section 1.01. DATE OF LEASE: MARCH 22, 1999

     Section 1.02. LANDLORD (INCLUDE LEGAL ENTITY): MICO ARCHIBALD PARTNERS,
L.L.C., a Delaware limited liability company.

Address of Landlord: 13191 Crossroads Parkway North, 6th Floor, City of
Industry, CA 91746

     Section 1.03. TENANT (INCLUDE LEGAL ENTITY): ANDERSON NEWS, LLC, a Delaware
limited liability company

Address of Tenant: 6016 Brookvale Lane, Suite 151, Knoxville, TN 37919

     Section 1.04. PROPERTY: (include street address, approximate square footage
and description) that approximately 160,000 square foot building located on
approximately 7.08 acres of land as outlined in red on Exhibit "A", subject to
the non-exclusive use of the area outlined in green on Exhibit "A" and more
commonly known as 2590 East Lindsay Privado, Ontario, California

     Section 1.05. LEASE TERM: 5 years 1 months BEGINNING ON * or such other
date as is specified in this Lease, and ENDING ON **

     Section 1.06. PERMITTED USES: (See Article Five) Only for the warehousing
and distribution of magazines and other printed matter, promotional items
related thereto and associated administrative uses.

     Section 1.07. TENANT'S GUARANTOR: (If none, so state) NONE

     Section 1.08. BROKERS: (See Article Fourteen) (If none, so state)________

Landlord's Broker: Majestic Realty Co.

Tenant's Broker: Grubb & Ellis

     Section 1.09. COMMISSION PAYABLE TO LANDLORD'S BROKER: (See Article
Fourteen) $ per separate agreement

     Section 1.10. INITIAL SECURITY DEPOSIT: (See Section 3.03) $47,280.00

     Section 1.11. VEHICLE PARKING SPACES ALLOCATED TO TENANT: PER EXHIBIT "A"

     Section 1.12. RENT AND OTHER CHARGES PAYABLE BY TENANT:

     (a) BASE RENT: FORTY-SEVEN THOUSAND TWO HUNDRED EIGHTY AND NO/100 Dollars
($47,280.00) per month for the first sixty-one (61) months, as provide in
Section 3.01.

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     (b) OTHER PERIODIC PAYMENTS: (i) Real Property Taxes (See Section 4.02);
(ii) Utilities (See Section 4.03); (iii) Insurance Premiums (See Section 4.04);
(iv) Impounds for Insurance Premiums and Property Taxes (See Section 4.07); (v)
Maintenance, Repairs and Alterations (See Article Six).

     Section 1.13. LANDLORD'S SHARE OF PROFIT ON ASSIGNMENT OR SUBLEASE: (See
Section 9.05) fifty percent (50%) of the Profit (the "Landlord's Share").

     Section 1.14. RIDERS: The following Riders are attached to and made a part
of this Lease: (If none, so state) ADDENDUM PAGES 1 THROUGH 8, OPTION TO EXTEND
TERM LEASE RIDER AND EXHIBITS "A", "B", "C", "D" AND "E"

*    the earlier to occur of (i) the date upon which Tenant first commences to
     conduct business in the Property and (ii) the date upon which the Property
     is "Ready for Occupancy" as that term is defined in the Tenant work letter
     attached hereto as Exhibit "E", which is anticipated to be November 1,
     1999.

**   the date upon which is sixty-one (61) months after the Lease Commence Date.

ARTICLE TWO: LEASE TERM

     Section 2.01. LEASE OF PROPERTY FOR LEASE TERM. Landlord leases the
Property to Tenant and Tenant leases the Property from Landlord for the Lease
Term. The Lease Term is for the period stated in Section 1.05 above and shall
begin and end on the dates specified in Section 1.05 above, unless the beginning
or end of the Lease Term is changed under any provision of this Lease. The
"Commencement Date" shall be the date specified in Section 1.05 above for the
beginning of the Lease Term, unless advanced or delayed under any provision of
this Lease.

     Section 2.02. DELAY IN COMMENCEMENT. See Addendum Section 2.02

     Section 2.03. EARLY OCCUPANCY. If Tenant occupies the Property prior to the
Commencement Date, Tenant's occupancy of the Property shall be subject to all of
the provisions of this Lease. Early occupancy of the Property shall not advance
the expiration date of this Lease. Tenant shall pay Base Rent and all other
charges specified in this Lease for the early occupancy period.

     Section 2.04. HOLDING OVER. Tenant shall vacate the Property upon the
expiration or earlier termination of this Lease. Tenant shall reimburse Landlord
for and indemnify Landlord against all damages (except for punitive damages)
which Landlord incurs from Tenant's delay in vacating the Property. If Tenant
does not vacate the Property upon the expiration or earlier termination of the
Lease and Landlord thereafter accepts rent from Tenant, Tenant's occupancy of
the Property shall be a "month-to-month" tenancy, subject to all of the terms of
this Lease applicable to a month-to-month tenancy, except that the monthly Base
Rent then in effect shall be increased by twenty-five percent (25%).

     Section 2.05. See Addendum

ARTICLE THREE: BASE RENT

     Section 3.01. TIME AND MANNER OF PAYMENT. Upon execution of this Lease,
Tenant shall pay Landlord the Base Rent in the amount stated in Paragraph
1.12(a) above for the second month of the Lease Term. On the first day of the
third month of the Lease Term and each month thereafter, Tenant shall pay
Landlord the Base Rent, in advance, without offset, deduction or prior demand.
The Base Rent shall be payable at Landlord's address or at such other place as
Landlord may designate in writing.

     See Addendum Section 3.01

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     Section 3.02. COST OF LIVING INCREASES. The Base Rent shall be increased on
each date (the "Rental Adjustment Date") stated in Option to Extend Term Lease
Rider, attached hereto, in accordance with the increase in the United States
Department of labor, Bureau of Labor Statistics, Consumer Price Index for All
Urban Consumers (all items for the geographical Statistical Area in which the
Property is located on the basis of 1982-1984=100) (the "Index") as follows:

     (a) The Base Rent (the "Comparison Base Rent") in effect immediately before
each Rental Adjustment Date shall be increased by the percentage that the Index
has increased from the date (the "Comparison Date") on which payment of the
Comparison Base Rent began through the month in which the applicable Rental
Adjustment Date occurs. The Base Rent shall into be reduced by reason of such
computation. Landlord shall notify Tenant of each increase by a written
statement which shall include the Index for the applicable Comparison Date, the
Index for the applicable Rental Adjustment Date, the percentage increase between
those two Indices, and the new Base Rent. Any increase in the Base Rent provided
for in this Section 3.02 shall be subject to any minimum or maximum increase, if
provided for in Option to Extend Term lease Rider.

     (b) Tenant shall pay the new Base Rent from the applicable Rental
Adjustment Date until the next Rental Adjustment Date. Landlord's notice may be
given after the applicable Rental Adjustment Date of the increase, and Tenant
shall pay Landlord the accrued rental adjustment for the months elapsed between
the effective date of the increase and Landlord's notice of such increase within
ten (10) days after Landlord's notice. If the format or components of the Index
are materially changed after the Commencement date, Landlord shall substitute an
index which is published by the Bureau of labor Statistics or similar agency and
which is most nearly equivalent to the Index in effect on the Commencement Date.
The substitute index shall be used to calculate the increase in the Base Rent
unless Tenant objects to such index in writing within fifteen (15) days after
receipt of Landlord's notice. If Tenant objects, Landlord and Tenant shall
submit the selection of the substitute index for binding arbitration in
accordance with the rules and regulations of the American Arbitration
Association at its office closest to the Property. The costs of arbitration
shall be borne equally by Landlord and Tenant.

     Section 3.03. SECURITY DEPOSIT; INCREASES.

     (a) Upon the execution of this Lease, Tenant shall deposit with Landlord a
cash Security Deposit in the amount set forth in Section 1.10 above. Landlord
may apply all or part of the Security Deposit to any unpaid rent or other
charges due from Tenant or to cure any other defaults of Tenant. If Landlord
uses any part of the Security Deposit, Tenant shall restore the Security Deposit
to its full amount within ten (10) days after Landlord's written request.
Tenant's failure to do so shall be a material default under this Lease. No
interest shall be paid on the Security Deposit. Landlord shall not be required
to keep the Security Deposit separate from its other accounts and no trust
relationship is created with respect to the Security Deposit.

     Section 3.04. TERMINATION; ADVANCE PAYMENTS. Upon termination of this Lease
under Article Seven (Damage or Destruction). Article Eight (Condemnation) or any
other termination not resulting from Tenant's default, and within sixty (60)
days after Tenant has vacated the Property in the manner required by this lease,
Landlord shall refund or credit to Tenant (or Tenant's successor) the unused
portion of the Security Deposit, any advance rent or other advance payments made
by Tenant to Landlord, and any amounts paid for real property taxes and other
reserves which apply to any time periods after termination of the Lease.

ARTICLE FOUR: OTHER CHARGES PAYABLE BY TENANT

     Section 4.01. ADDITIONAL RENT. All charges payable by Tenant other than
Base Rent are called "Additional Rent." Unless this Lease provides otherwise,
Tenant shall pay all Additional Rent then due with the next monthly installment
of Base Rent. The term "rent" shall mean Base Rent and Additional Rent.

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     Section 4.02. PROPERTY TAXES.

     (a) REAL PROPERTY TAXES. Tenant shall pay all real property taxes on the
Property (including any fees, taxes or assessments against, or as a result of,
any tenant improvements installed on the Property by or for the benefit of
Tenant) during the Lease Term. Subject to Paragraph 4.02 (c) and Section 4.07
below, such payment shall be made at least ten (10) days prior to the
delinquency date of the taxes. Within such ten (10)-day period, Tenant shall
furnish Landlord with satisfactory evidence that the real property taxes have
been paid. Landlord shall reimburse Tenant for any real property taxes paid by
Tenant covering any period of time prior to or after the Lease Term. If Tenant
fails to pay the real property taxes when due, Landlord may pay the taxes and
Tenant shall reimburse Landlord for the amount of such tax payment as Additional
Rent. Alternatively, Landlord may elect to bill Tenant in advance for such taxes
and Tenant shall pay Landlord the amount of such taxes, as Additional Rent, at
least ten (10) days prior to delinquency. Landlord shall pay such taxes prior to
delinquency provided Tenant has timely made such payments to Landlord. Any
penalty caused by Tenant's failure to timely make such payments shall also be
Additional Rent owed by Tenant immediately upon demand. Alternatively, Landlord
may elect to bill Tenant in advance for such taxes and tenant shall pay Landlord
the amount of such taxes, as Additional Rent, at least ten (10) days prior to
delinquency. Landlord shall pay such taxes prior to delinquency provided Tenant
has timely made such payments to Landlord. Any penalty caused by Tenant's
failure to timely make such payments shall also be Additional Rent owed by
Tenant immediately upon demand.

     (b) DEFINITION OF "REAL PROPERTY TAX." "Real property tax" means: (i) any
fee, license fee, license tax, business license fee, commercial rental tax,
levy, charge, assessment, penalty or tax imposed by any taxing authority against
the Property; (ii) any tax on the Landlord's right to receive, or the receipt
of, rent or income from the Property or against Landlord's business of leasing
the Property; (iii) any tax or charge for fire protection, streets, sidewalks,
road maintenance, refuse or other services provided to the Property by any
governmental agency; (iv) any tax imposed or based upon a re-assessment of the
Property due to a change of ownership, as defined by applicable law, or other
transfer of all or part of Landlord's interest in the Property; and (v) any
charge or fee replacing any tax previously included within the definition of
real property tax. "Real property tax" does not, however, include Landlord's
federal or state income, franchise, inheritance or estate taxes.

     (c) JOINT ASSESSMENT. If the Property is not separately assessed, Landlord
shall reasonably determine Tenant's share of the real property tax payable by
Tenant under Paragraph 4.02(a) from the assessor's worksheets or other
reasonably available information. Tenant shall pay such share to Landlord within
fifteen (15) days after receipt of Landlord's written statement.

     (d) PERSONAL PROPERTY TAXES.

          (i)  Tenant shall pay all taxes charged against trade fixtures,
               furnishings, equipment or any other personal property belonging
               to Tenant. Tenant shall try to have personal property taxed
               separately from the Property.

          (ii) If any of Tenant's personal property is taxed with the Property,
               Tenant shall pay Landlord the taxes for the personal property
               within fifteen (15) days after Tenant receives a written
               statement from Landlord for such personal property taxes.

     (e) TENANT'S RIGHT TO CONTEST TAXES. Tenant may attempt to have the
assessed valuation of the Property reduced or may initiate proceedings to
contest the real property taxes. If required by law, Landlord shall join in the
proceedings brought by Tenant. However, Tenant shall pay all costs of the
proceedings, including any costs or fees incurred by Landlord. Upon the final
determination of any proceeding or contest, Tenant shall immediately pay the
real property taxes due, together with all costs, charges, interest and
penalties incidental to the proceedings. If Tenant does not pay the real
property taxes when due and contests such taxes, Tenant shall not be in default
under this Lease for nonpayment of

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such taxes if Tenant posts any statutory bond or if no bond is permitted,
deposits funds with Landlord or opens an interest-bearing account reasonably
acceptable to Landlord in the joint names of Landlord and Tenant. The amount of
such bond or deposit shall be sufficient to pay the real property taxes plus a
reasonable estimate of the interest, costs, charges and penalties which may
accrue if Tenant's action is unsuccessful, less any applicable tax impounds
previously paid by Tenant to Landlord. The deposit shall be applied to the real
property taxes due, as determined at such proceedings. The real property taxes
shall be paid under protest from such deposit if such payment under protest is
necessary to prevent the Property from being sold under a "tax sale" or similar
enforcement proceeding.

     Section 4.03. UTILITIES. Tenant shall pay, directly to the appropriate
supplier, the cost of all natural gas, heat, light, power, sewer service,
telephone, water, refuse, disposal and other utilities and services supplied to
the Property. However, if any services or utilities are jointly metered with
other property, Landlord shall make a reasonable determination of Tenant's
proportionate share of the cost of such utilities and services and Tenant shall
pay such share to Landlord within fifteen (15) days after receipt of Landlord's
written statement. Notwithstanding the foregoing, Tenant shall have the right,
at Tenant's sole cost and expense, to have separate meters installed.

     Section 4.04. INSURANCE POLICIES.

     (a) LIABILITY INSURANCE. During the Lease Term, Tenant shall maintain a
policy of commercial general liability insurance (sometimes known as broad form
comprehensive general liability insurance) insuring Tenant against liability for
bodily injury, property damage (including loss of use of property) and personal
injury arising out of the operation, use or occupancy of the Property. Tenant
shall name Landlord as an additional insured under such policy. The initial
amount of such insurance shall be One Million Dollars ($1,000,000) per
occurrence and shall be subject to periodic increase based on inflation,
increased liability awards, recommendation of Landlord's professional insurance
advisers and other relevant factors. The liability insurance obtained by Tenant
under this Paragraph 4.04(a) shall (i) be primary and non-contributing; (ii)
contain cross-liability endorsements; and (iii) insure Landlord against Tenant's
performance under Section 5.05, if the matters giving rise to the indemnity
under Section 5.05 result from the negligence of Tenant. The amount and coverage
of such insurance shall not limit Tenant's liability nor relieve Tenant of any
other obligation under this Lease. Landlord may also obtain comprehensive public
liability insurance in an amount and with coverage determined by Landlord
insuring Landlord against liability arising out of ownership, operation, use or
occupancy of the Property. The policy obtained by Landlord shall not be
contributory and shall not provide primary insurance.

     (b) PROPERTY AND RENTAL INCOME INSURANCE. During the lease Term, Landlord
shall maintain policies of insurance covering loss of or damage to the Property
in the full amount of its replacement value. Such policy shall contain an
Inflation Guard Endorsement and shall provide protection against all perils
included within the classification of fire, extended coverage, vandalism,
malicious mischief, special extended perils (all risk), sprinkler leakage and
any other perils which Landlord deems reasonably necessary. Landlord shall have
the right to obtain flood and earthquake insurance if required by any lender
holding a security interest in the Property. Landlord shall not obtain insurance
for Tenant's fixtures or equipment or building improvements installed by Tenant
on the Property. During the lease Term, Landlord shall also maintain a rental
income insurance policy, with loss payable to Landlord, in an amount equal to
one year's Base Rent, plus estimated real property taxes and insurance premiums.
Tenant shall be liable for the payment of any deductible amount under Landlord's
or Tenant's insurance policies maintained pursuant to this Section 4.04, in an
amount not to exceed Ten Thousand Dollars ($10,000). Tenant shall not do or
permit anything to be done which invalidates any such insurance policies.

     (c) PAYMENT OF PREMIUMS. Subject to Section 4.07, Tenant shall pay all
premiums for the insurance policies described in Paragraphs 4.04(a) and (b)
(whether obtained by Landlord or Tenant) within fifteen (15) days after Tenant's
receipt of a coy of the premium statement or other evidence of the amount due,
except Landlord shall pay all premiums for non-primary comprehensive public
liability

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insurance which Landlord elects to obtain as provided in Paragraph 4.04(a). If
insurance policies maintained by Landlord cover improvements on real property
other than the Property, Landlord shall reasonably determine the premium
applicable to the Property and deliver to Tenant a statement of the premium
applicable to the Property showing in reasonable detail how Tenant's share of
the premium was computed. If the Lease Term expires before the expiration of an
insurance policy maintained by Landlord, Tenant shall be liable for Tenant's
prorated share of the insurance premiums. Before the Commencement Date, Tenant
shall deliver to Landlord a copy of any policy of insurance which Tenant is
required to maintain under this Section 4.04. At least thirty (30) days prior to
the expiration of any such policy, Tenant shall deliver to Landlord a renewal of
such policy. As an alternative to providing a policy of insurance, Tenant shall
have the right to provide Landlord a certificate of insurance, executed by an
authorized officer of the insurance company, showing that the insurance which
Tenant is required to maintain under this Section 4.04 is in full force and
effect and containing such other information which Landlord reasonably requires.

     (d) GENERAL INSURANCE PROVISIONS.

          (i)  Any insurance which Tenant is required to maintain under this
               Lease shall include a provision which requires the insurance
               carrier to give Landlord not less than thirty (30) days written
               notice prior to any cancellation or modifications of such
               coverage.

          (ii) If Tenant fails to deliver any policy, certificate or renewal to
               Landlord required under this lease within the prescribed time
               period or if any such policy is cancelled or modified during the
               Lease Term without Landlord's consent, Landlord may obtain such
               insurance, in which case Tenant shall reimburse Landlord for the
               cost of such insurance within fifteen (15) days after receipt of
               a statement that indicates the cost of such insurance.

          (iii) Tenant shall maintain all insurance required under this lease
               with companies holding a "General Policy Rating" of A-12 or
               better, as set forth in the most current issue of "Best Key
               Rating Guide." Landlord and Tenant acknowledge the insurance
               markets are rapidly changing and that insurance in the form and
               amounts described in this Section 4.04 may not be available in
               the future. Tenant acknowledges that the insurance described in
               this Section 4.04 is for the primary benefit of Landlord. If at
               any time during the Lease Term, Tenant is unable to maintain the
               insurance required under the Lease, Tenant shall nevertheless use
               its reasonable best efforts to maintain insurance coverage which
               is customary and commercially reasonable in the insurance
               industry for Tenant's type of business, as that coverage may
               change from time to time. Landlord makes no representation as to
               the adequacy of such insurance to protect Landlord's or Tenant's
               interests. Therefore, Tenant shall obtain any such additional
               property or liability insurance which Tenant deems necessary to
               protect Landlord and Tenant. See Addendum Section 4.04 (d)(iii)

          (iv) Unless prohibited under any applicable insurance policies
               maintained, Landlord and Tenant each hereby waive any and all
               rights of recovery against the other, or against the officers,
               employees, agents or representatives of the other, for loss of or
               damage to its property or the property of others under its
               control, if such loss or damage is covered by any insurance
               policy in force (whether or not described in this Lease) at the
               time of such loss or damage. Upon obtaining the required policies
               of insurance, Landlord and Tenant shall give notice to the
               insurance carriers of this mutual waiver of subrogation. See
               Addendum Section 4.04 (d)(iv)

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     Section 4.05. LATE CHARGES. Tenant's failure to pay rent promptly may cause
     Landlord to incur unanticipated costs. The exact amount of such costs are
     impractical or 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 lese, mortgage or trust deed
     encumbering the Property. Therefore, if Landlord does not receive any rent
     payment within ten (10) days after it becomes due, Tenant shall pay
     Landlord a late charge equal to ten percent (10%) of the overdue amount.
     The parties agree that such late charge represents a fair and reasonable
     estimate of the costs Landlord will incur by reason of such late payment.

     Section 4.06. INTEREST ON PAST DUE OBLIGATIONS. Any amount owed by Tenant
     to Landlord which is not paid when due shall bear interest at the rate of
     twelve percent (12%) per annum from the due date of such amount. However,
     interest shall not be payable on late charges to be paid by Tenant under
     this Lease. 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.

     Section 4.07 IMPOUNDS FOR INSURANCE PREMIUMS AND REAL PROPERTY TAXES. If
     requested by any ground lesser or lender to whom Landlord has granted a
     security interest in the Property, or if Tenant is more than ten (10) days
     late in the payment of rent more than once in any consecutive twelve
     (12)-month period, Tenant shall pay Landlord a sum equal to one-twelfth
     (1/12) of the annual real property taxes and insurance premiums payable by
     Tenant under this Lease, together with each payment of Base Rent. Landlord
     shall hold such payments in a non-interest bearing impound account. If
     unknown, Landlord shall reasonably estimate the amount of real property
     taxes and insurance premiums when due. Tenant shall pay any deficiency of
     funds in the impound account to Landlord upon written request. If Tenant
     defaults under this lease, Landlord may apply any funds in the impound
     account to any obligation then due under this Lease.

ARTICLE FIVE: USE OF PROPERTY

     Section 5.01 PERMITTED USES. Tenant may use the Property only for the
Permitted Uses set forth in Section 1.06 above.

     Section 5.02 MANNER OF USE. Tenant shall not cause of permit the Property
to be used in any way which constitutes a violation of any law, ordinance, or
governmental regulation or order, which annoys or interferes with the rights of
other tenants of Landlord, or which constitutes a violation of any law,
ordinance, or governmental regulation or order, which annoys or interferes with
the rights of other tenants of Landlord, or which constitutes a nuisance or
waste. Tenant shall obtain and pay for all permits, including a Certificate of
Occupancy, required for Tenant's occupancy of the Property and shall promptly
take all actions necessary to comply with all applicable statutes, ordinances,
rules, regulations, orders and requirements regulating the use by Tenant of the
Property, including the Occupational Safety and Health Act.

     Section 5.03 HAZARDOUS MATERIALS. See Addendum Section 5.04

     Section 5.04 SIGNS AND AUCTIONS. Tenant shall not place any signs on the
Property without Landlord's prior consent. Tenant shall not conduct or permit
any auctions or sheriff's sales at the Property. See Addendum Section 5.04

     Section 5.05 INDEMNITY. Tenant shall indemnify Landlord against and hold
Landlord harmless from any and all costs, claims or liability arising from: (a)
Tenant's use of the Property; (b) the conduct of Tenant's business or anything
else done or permitted by Tenant to be done in

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or about the Property; (c) any breach or default in the performance of Tenant's
obligations under this Lease; (d) any misrepresentation or breach of warranty by
Tenant under this Lease; or (e) other acts or omissions of Tenant. Tenant shall
defend Landlord against any such cost, claim or liability at Tenant's expense
with counsel reasonably acceptable to Landlord or, at Landlord's election,
Tenant shall reimburse Landlord for any legal fees or costs incurred by Landlord
in connection with any such claim. As a material part of the consideration to
Landlord, Tenant assumes all risk of damage to property or injury to persons in
or about the Property arising from any cause, and Tenant hereby waives all
claims in respect thereof against Landlord, except for any claim arising out of
Landlord's gross negligence or willful misconduct. As used in this Section, the
term "Tenant" shall include Tenant's employees, agents, contractors and
invitees, if applicable.

     Section 5.06 LANDLORD'S ACCESS. Landlord or its agents may enter the
Property at all reasonable times to show the Property to potential buyers,
investors or tenants (during the last six (6) months of the Lease) or other
parties; or do any other act; or for any other purpose Landlord deems necessary.
Landlord shall give Tenant prior notice of such entry, except in the case of an
emergency. Landlord may place customary "For Sale" or "For Lease" signs on the
Property.

     Section 5.07 QUIET POSSESSION. If Tenant pays the rent and complies with
all other terms of this Lease, Tenant shall have quiet possession of the
Property for the full Lease Term, subject to the provisions of this Lease.

ARTICLE SIX: CONDITION OF PROPERTY; MAINTENACE, REPAIRS AND ALTERATIONS

     Section 6.01 EXISTING CONDITIONS. Except as set forth in the Tenant Work
Letter attached hereto as Exhibit E, Tenant accepts the Property in its
condition as of the execution of the Lease, subject to all recorded matters,
laws, ordinances, and governmental regulations and orders. Except as provided
herein, Tenant acknowledges that neither Landlord nor any agent of Landlord has
made any representation as to the condition of the Property or the suitability
of the Property for Tenant's intended use. Tenant represents and warrants that
Tenant has made its own inspection of and inquiry regarding the condition of the
Property and is not relying on any representations of Landlord or any Broker
with respect thereto. If Landlord or Landlord's Broker has provided a Property
Information Sheet or other Disclosure Statement regarding the Property, a coy is
attached as an exhibit to the Lease.

     Section 6.02 EXEMPTION OF LANDLORD FROM LIABILITY. Landlord shall not be
liable for any damage or injury to the person, business (or any loss of income
therefrom), goods, wares, merchandise or other property of Tenant, Tenant's
employees, invitees, customers or any other person in or about the Property,
whether such damage or injury is caused by or results from: (a) fire, steam,
electricity, water, gas or rain; (b) the breakage, leakage, obstruction or other
defects of pipes, sprinklers, wires, appliances, plumbing, air conditioning or
lighting fixtures or any other cause; (c) conditions arising in or about the
Property or from other sources or places; or (d) any act or omission of any
other tenant of Landlord. Landlord shall not be liable for any such damage or
injury even though the cause of or the means of repairing such damage or injury
are not accessible to Tenant. The provisions of this Section 6.02 shall not,
however, exempt Landlord from liability for Landlord's gross negligence or
willful misconduct.

     Section 6.03 LANDLORD'S OBLIGATIONS. Subject to the provisions of Article
Seven (Damage or Destruction) and Article Eight (Condemnation), Landlord shall
have absolutely no responsibility to repair, maintain or replace any portion of
the Property at any time. Tenant waives the benefit of any present or future law
which might give Tenant the right to repair the Property at Landlord's expense
or to terminate the Lease due to the condition of the Property. See Addendum
Section 6.03

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          Section 6.04 TENANT'S OBLIGATIONS.

          (a) Except as provided in Section 6.03 (including the addendum
thereto), Article Seven (Damage or Destruction) and Article Eight
(Condemnation), Tenant shall keep all portions of the Property (including
nonstructural, interior, exterior, and landscaped areas, portions, systems and
equipment) in good order, condition and repair (including interior repainting
and refinishing, as needed). If any portion of the Property or any system or
equipment in the Property which Tenant is obligated to repair cannot be fully
repaired or restored, Tenant shall promptly replace such portion of the Property
or system or equipment in the Property, regardless of whether the benefit of
such replacement extends beyond the Lease Term; but if the benefit or useful
life of such replacement extends beyond the Lease Term (as such term may be
extended by exercise of any option) the useful life of such replacement shall be
prorated over the remaining portion of the Lease Term (as extended), and Tenant
shall be liable only for that portion of the cost which is applicable to the
Lease Term (as extended). Tenant shall maintain a preventive maintenance
contract providing for the regular inspection and maintenance of the heating and
air conditioning system by a licensed heating and air conditioning contractor.
If any part of the Property is damaged by any act or omission of Tenant. Tenant
shall pay Landlord the cost of repairing or replacing such damaged property,
whether or not Landlord would otherwise be obligated to pay the cost of
maintaining or repairing such property. It is the intention of Landlord and
Tenant that at all times Tenant shall maintain the portions of the Property
which Tenant is obligated to maintain in an attractive, first-class and fully
operative condition.

          (b) Tenant shall fulfill all of Tenant's obligations under this
Section 6.04 at Tenant's sole expense. If Tenant fails to maintain, repair or
replace the Property as required by this Section 6.04, Landlord may, upon ten
(10) days prior notice to Tenant (except that no notice shall be required in the
case of any emergency), enter the Property and perform such maintenance or
repair (including replacement as needed) on behalf of Tenant. In such case,
Tenant shall reimburse Landlord for all costs incurred in performing such
maintenance or repair immediately upon demand.

          Section 6.05 ALTERATIONS, ADDITIONS, AND IMPROVEMENTS.

          (a) Tenant shall not make any alterations, additions, or improvements
to the Property without Landlord's prior written consent, except for
non-structural alterations which do not exceed Twenty Thousand Dollars ($20,000)
in cost cumulatively over the Lease term and which are not visible from the
outside of any building of which the Property is part. Landlord may require
Tenant to provide demolition and/or lien and completion bonds in form and amount
satisfactory to Landlord. Tenant shall promptly remove any alterations,
additions, or improvements constructed in violation of this Paragraph 6.05(a)
upon Landlord's written request. All alterations, additions, and improvements
shall be done in a good and workmanlike manner, in conformity with all
applicable laws and regulations, and by a contractor approved by Landlord. Upon
completion of any such work, Tenant shall provide Landlord with "as built"
plans, copies of all construction contracts, and proof of payment for all labor
and materials.

          (b) Tenant shall pay when due all claims for labor and material
furnished to the Property. Tenant shall give Landlord at least twenty (20) days'
prior written notice of the commencement of any work on the Property, regardless
of whether Landlord's consent to such work is required. Landlord may elect to
record and post notices of non-responsibility on the Property.

     Section 6.06 CONDITION UPON TERMINATION. Upon the termination of the Lease,
Tenant shall surrender the Property to Landlord, broom clean and in the same
condition as received except for ordinary wear and tear which Tenant was not
otherwise obligated to remedy under any provision of this Lease. However, Tenant
shall not be obligated to repair any damage which Landlord is required to repair
under Article Seven (Damage or Destruction). In addition, Landlord may require
Tenant to remove any alterations, additions or improvements (whether or not made
with Landlord's consent) prior to the expiration of the Lease and to restore the
Property to its prior condition, all at Tenant's expense. Nothwithstanding the
foregoing, Tenant may request, at the time it seeks Landlord's consent to an

<PAGE>

improvement, that Landlord state at the time it grants approval, whether or not
removal will be required at the end of the Lease Term. Such request shall
specifically cite this Lease provision and Landlord's obligation to make such
statement. Any improvement Landlord consents to remain on the Property shall be
delivered at the end of the Lease Term in the condition installed, reasonable
wear and tear excepted. All alterations, additions an improvements which
Landlord has not required Tenant to remove shall become Landlord's property and
shall be surrendered to Landlord upon the expiration or earlier termination of
the Lease, except that Tenant may remove any of Tenant's machinery or equipment
which can be removed without material damage to the Property. Tenant shall
repair, at Tenant's expense, any damage to the Property caused by the removal of
any such machinery or equipment. In no event, however, shall Tenant remove any
of the following materials or equipment (which shall be deemed Landlord's
property) without Landlord's prior written consent: any power wiring or power
panels; lighting or lighting fixtures: wall coverings: drapes, blinds or other
window coverings: carpets or other floor coverings; heaters, air conditioners or
any other heating or air conditioning equipment: fencing or security gates: or
other similar building operating equipment and decorations.

ARTICLE SEVEN: DAMAGE OR DESTRUCTION

     Section 7.01 PARTIAL DAMAGE TO PROPERTY.

          (a) Tenant shall notify Landlord in writing immediately upon the
occurrence of any damage to the property. If the Property is only partially
damaged (i.e., less than fifty percent (50%) of the Property is untenantable as
a result of such damage or less than fifty percent (50%) of Tenant's operations
are materially impaired) and if the proceeds received by Landlord from the
insurance policies described in Paragraph 4.04(b) are sufficient to pay for the
necessary repairs, this Lease shall remain in effect and Landlord shall repair
the damage as soon as reasonably possible. Landlord may elect (but is not
required) to repair any damage to Tenant's fixtures, equipment, or improvements.

          (b) If the insurance proceeds received by Landlord are not sufficient
to pay the entire cost of repair, or if the cause of the damage is not covered
by the insurance policies which Landlord maintains under Paragraph 4.04(b),
Landlord may elect either to (i) repair the damage as soon as reasonably
possible, in which case this Lease shall remain in full force and effect, or
(ii) terminate this Lease as of the date the damage occurred. Landlord shall
notify Tenant within thirty (30) days after receipt of notice of the occurrence
of the damage whether Landlord elects to repair the damage or terminate the
Lease. If Landlord elects to repair the damage, Tenant shall pay Landlord the
"deductible amount" (if any) under Landlord's insurance policies and, if the
damage was due to an act or omission of Tenant, or Tenant's employees, agents,
contractors or invitees, the difference between the actual cost of repair and
any insurance proceeds received by Landlord. If Landlord elects to terminate
this Lease, Tenant may elect to continue this Lease in full force and effect, in
which case Tenant shall repair any damage to the Property and any building in
which the Property is located. Tenant shall pay the cost of such repairs, except
that upon satisfactory completion of such repairs, Landlord shall deliver to
Tenant any insurance proceeds received by Landlord for the damage repaired by
Tenant. Tenant shall give Landlord written notice of such election within ten
(10) days after receiving Landlord's termination notice.

          (c) If the damage to the Property occurs during the last six (6)
months of the Lease Term and such damage will require more than thirty (30) days
to repair, either Landlord or Tenant may elect to terminate this Lease as of the
date the damage occurred, regardless of the sufficiency of any insurance
proceeds. The party electing to terminate this Lease shall give written
notification to the other party of such election within thirty (30) days after
Tenant's notice to Landlord of the occurrence of the damage.

     Section 7.02. SUBSTANTIAL OR TOTAL DESTRUCTION. If the Property is
substantially or totally destroyed by an cause whatsoever (i.e., the damage to
the Property is greater than partial damage as described in Section 7.01), and
regardless of whether Landlord receives any insurance proceeds, this

<PAGE>

Lease shall terminate the later of the (i) date the destruction occurred and
(ii) the date Tenant ceases to do business at the Property. Notwithstanding the
preceding sentence, if the Property can be rebuilt within six (6) months after
the date of destruction, Landlord may elect to rebuild the Property at
Landlord's own expense, in which case this Lease shall remain in full force and
effect. Landlord shall notify Tenant of such election within thirty (30) days
after Tenant's notice of the occurrence of total or substantial destruction. If
Landlord so elects, Landlord shall rebuild the Property at Landlord's sole
expense, except that if the destruction was caused by an act or omission of
Tenant, Tenant shall pay Landlord the difference between the actual cost of
rebuilding and any insurance proceeds received by Landlord.

     Section 7.03. TEMPORARY REDUCTION OF RENT. If the Property is destroyed or
damaged and Landlord or Tenant repairs or restores the Property pursuant to the
provisions of this Article Seven, any rent payable during the period of such
damage, repair and/or restoration shall be reduced according to the degree, if
any, to which Tenant's use of the Property is impaired. Except for such possible
reduction in Base Rent, insurance premiums and real property taxes, Tenant shall
not be entitled to any compensation, reduction, or reimbursement from Landlord
as a result of any damage, destruction, repair, or restoration of or to the
Property.

     Section 7.04. WAIVER. Tenant waives the protection of any statute, code or
judicial decision which grants a tenant the right to terminate a lease in the
event of the substantial or total destruction of the leased property. Tenant
agrees that the provisions of Section 7.02 above shall govern the rights and
obligations of Landlord and Tenant in the event of any substantial or total
destruction to the Property.

ARTICLE EIGHT: CONDEMNATION

     If all or any portion of the Property is taken under the power of eminent
domain or sold under the threat of that power (all of which are called
"Condemnation"), this Lease shall terminate as to the part taken or sold on the
date the condemning authority takes title or possession, whichever occurs first.
If more than thirty percent (30%) of the floor area of the building in which the
Property is located, or which is located on the Property, is taken, either
Landlord or Tenant may terminate this Lease as of the date the condemning
authority takes title or possession, by delivering written notice to the other
within ten (10) days after receipt of written notice of such taking (or in the
absence of such notice, within ten (10) days after the condemning authority
takes title or possession ). If neither Landlord nor Tenant terminates this
Lease, this Lease shall remain in effect as to the portion of the Property not
taken, except that the Base Rent and Additional Rent shall be reduced in
proportion to the reduction in the floor area of the Property. Any Condemnation
award or payment shall be distributed in the following order: (a) first, to any
ground lessor, mortgagee or beneficiary under a deed of trust encumbering the
Property, the amount of its interest in the Property; (b) second, to Tenant,
only the amount of any award specifically designated for loss of or damage to
Tenant's trade fixtures or removable personal property and any award
specifically designated for any relocation expenses; and (c) third, to Landlord,
the remainder of such award, whether as compensation for reduction in the value
of the leasehold, the taking of the fee, or otherwise. If this Lease is not
terminated, Landlord shall repair any damage to the Property caused by the
Condemnation, except that Landlord shall not be obligated to repair any damage
for which Tenant has been reimbursed by the condemning authority. If the
severance damages received by Landlord are not sufficient to pay for such
repair, Landlord shall have the right to either terminate this Lease or make
such repair at Landlord's expense.

ARTICLE NINE: ASSIGNMENT AND SUBLETTING

     Section 9.01. LANDLORD'S CONSENT REQUIRED. No portion of the Property or of
Tenant's interest in this Lease may be acquired by any other person or entity,
whether by sale, assignment, mortgage, sublease, transfer, operation of law, or
act of Tenant, without Landlord's prior written consent, except as provided in
Section 9.02 below. Landlord has the right to grant or withhold its consent as
provided in Section 9.05 below. Any attempted transfer without consent shall be
void and shall constitute a non-curable breach of this Lease. If Tenant is a
corporation, any change in the ownership of a

<PAGE>

controlling interest of the voting stock of the corporation shall require
Landlord's consent. Notwithstanding the foregoing, Tenant may transfer its stock
to an individual related to the present owners of the stock, as of the date of
this Lease, without Landlord's consent, provided Tenant gives Landlord written
notice of such transfer.

     Section 9.02. TENANT AFFILIATE. Tenant may assign this Lease or sublease
the Property, without Landlord's consent, to any corporation which controls, is
controlled by or is under common control with Tenant, or to any corporation
resulting from the merger of or consolidation with Tenant ("Tenant's
Affiliate"). In such case, any Tenant's Affiliate shall assume in writing all of
Tenant' obligations under the Lease.

     Section 9.03. NO RELEASE OF TENANT. No transfer permitted by this Article
Nine, whether with or without Landlord's consent, shall release Tenant or change
Tenant's primary liability to pay the rent and to perform all other obligations
of Tenant under this Lease. Landlord's acceptance of rent from any other person
is not a waiver of any provision of this Article Nine. Consent to one transfer
is not a consent to any subsequent transfer. If Tenant's transferee defaults
under this Lease, Landlord may proceed directly against Tenant without pursuing
remedies against the transferee. Landlord may consent to subsequent assignments
or modifications of this Lease by Tenant's transferee, without notifying Tenant
or obtaining its consent. Such action shall not relieve Tenant's liability under
this Lease.

     Section 9.05. LANDLORD'S CONSENT.

     (a) Tenant's request for consent to any transfer described in Section 9.01
shall set forth in writing the details of the proposed transfer, including the
name, business and financial condition of the prospective transferee, financial
details of the proposed transfer (e.g., the term of and the rent and security
deposit payable under any proposed assignment or sublease), and any other
information Landlord deems relevant. Landlord shall have the right to withhold
consent, if reasonable, or to grant consent, based on the following factors: (i)
the business of the proposed assignee or subtenant and the proposed use of the
Property; (ii) the net worth and financial reputation of the proposed assignee
or subtenant; (iii) Tenant's compliance with all of its obligations under the
Lease; and (iv) such other factors as Landlord may reasonably deem relevant. If
Landlord objects to a proposed assignment solely because of the net worth and/or
financial reputation of the proposed assignee, Tenant may nonetheless sublease
(but not assign), all or a portion of the Property to the proposed transferee,
but only on the other terms of the proposed transfer.

     (b) If Tenant assigns or subleases, the following shall apply:

          (i) Tenant shall pay to Landlord as Additional Rent under the Lease
the Landlord's Share (stated in Section 1.13) of the Profit (defined below) on
such transaction as and when received by Tenant, unless Landlord gives written
notice to Tenant and the assignee or subtenant that Landlord's Share shall be
paid by the assignee or subtenant to Landlord directly. The "Profit" means (A)
all amounts paid to Tenant for such assignment or sublease, including "key"
money, monthly rent in excess of the monthly rent payable under the Lease, and
all fees and other consideration paid for the assignment or sublease, including
fees under any collateral agreements, less (B) costs and expenses directly
incurred by Tenant in connection with the execution and performance of such
assignment or sublease for real estate broker's commissions and costs of
renovation or construction of tenant improvements required under such assignment
or sublease. Tenant is entitled to recover such costs and expenses before Tenant
is obligated to pay the Landlord's Share to Landlord. The Profit in the case of
a sublease of less than all the Property is the rent allocable to the subleased
space as a percentage on a square footage basis.

          (ii) Tenant shall provide Landlord a written statement certifying all
amounts to be paid from any assignment or sublease of the Property within thirty
(30) days after the transaction documentation is signed, and Landlord may
inspect Tenant's books and records to verify the accuracy of such statement. On
written request, Tenant shall promptly furnish to Landlord copies of all the

<PAGE>

transaction documentation, all of which shall be certified by Tenant to be
complete, true and correct. Landlord's receipt of Landlord's Share shall not be
a consent to any further assignment or subletting. The breach of Tenant's
obligation under this Paragraph 9.05(b) shall be a material default of the
Lease.

     Section 9.06. NO MERGER. No merger shall result from Tenant's sublease of
the Property under this Article Nine, Tenant's surrender of this Lease or the
termination of this Lease in any other manner. In any such event, Landlord may
terminate any or all subtenancies or succeed to the interest of Tenant as
sublandlord under any or all subtenancies.

ARTICLE TEN: DEFAULTS; REMEDIES

     Section 10.01. COVENANTS AND CONDITIONS. Tenant's performance of each of
Tenant's obligations under this Lease is a condition as well as a covenant.
Tenant's right to continue in possession of the Property is conditioned upon
such performance. Time is of the essence in the performance of all covenants and
conditions.

     Section 10.02. DEFAULTS. Tenant shall be in material default under this
Lease:

     (a) If Tenant abandons the Property and fails to pay rent or if Tenant's
vacation of the Property results in the cancellation of any insurance described
in Section 4.04;

     (b) If Tenant fails to pay rent or any other charge when due;

     (c) If Tenant fails to perform any of tenant's non-monetary obligations
under this Lease for a period of thirty (30) days after written notice from
Landlord; provided that if more than thirty (30) days are required to complete
such performance, Tenant shall not be in default if Tenant commences such
performance within the thirty (30) days period and thereafter diligently pursues
its completion. However, Landlord shall not be required to give such notice if
Tenant's failure to perform constitutes a non-curable breach of this Lease. The
notice required by this Paragraph is intended to satisfy any and all notice
requirements imposed by law on Landlord and is not in addition to any such
requirement.

     (d) (i) If Tenant makes a general assignment or general arrangement for the
benefit of creditors; (ii) if a petition for adjudication of bankruptcy or for
reorganization or rearrangement is filed by or against Tenant and is not
dismissed within thirty (30) days; (iii) if a trustee or receiver is appointed
to take possession of substantially all of Tenant's assets located at the
Property or of Tenant's interest in this Lease and possession is not restored to
Tenant within thirty (30) days; or (iv) if substantially all of Tenant's assets
located at the Property or of Tenant's interest in this Lease is subjected to
attachment, execution or other judicial seizure which is not discharged within
thirty (30) days. If a court of competent jurisdiction determines that any of
the acts described in this subparagraph (d) is not a default under this Lease,
and a trustee is appointed to take possession (or if Tenant remains debtor in
possession) and such trustee or Tenant transfers Tenant's interest hereunder,
then Landlord shall receive, as Additional Rent, the excess, if any, of the rent
(or any other consideration) paid in connection with such assignment or sublease
over the rent payable by Tenant under this Lease.

     (e) If any guarantor of the Lease revokes or otherwise terminates, or
purports to revoke or otherwise terminate, any guaranty of all or any portion of
Tenant's obligations under the Lease. Unless otherwise expressly provided, no
guaranty of the Lease is revocable.

     Section 10.03. REMEDIES. On the occurrence of any material default by
Tenant, Landlord may, at any time thereafter, with or without notice or demand
and without limiting Landlord in the exercise of any right or remedy which
Landlord may have:

     (a) Terminate Tenant's right to possession of the Property by any lawful
means, in which case this Lease shall terminate and Tenant shall immediately
surrender possession of the Property to

<PAGE>

Landlord. (1) In such event, Landlord shall be entitled to recover from Tenant
all damages incurred by Landlord by reason of Tenant's default, including (i)
the worth at the time of the award of the unpaid Base Rent, Additional Rent and
other charges which Landlord had earned at the time of the termination; (ii) the
worth at the time of the award of the amount by which the unpaid Base Rent,
Additional Rent and other charges which Landlord would have earned after
termination until the time of the award exceeds the amount of such rental loss
that Tenant proves Landlord could have reasonably avoided; (iii) the worth at
the time of the award of the amount by which the unpaid Base Rent, Additional
Rent and other charges which Tenant would have paid for the balance of the Lease
term after the time of award exceeds the amount of such rental loss that Tenant
proves Landlord could have reasonably avoided; and (iv) any other amount
necessary to compensate Landlord for all the detriment proximately caused by
Tenant's failure to perform its obligations under the Lease or which in the
ordinary course of things would be likely to result therefrom, including, but
not limited to, any costs or expenses Landlord incurs in maintaining or
preserving the Property after such default, the cost of recovering possession of
the Property, expenses of reletting, including necessary renovation or
alteration of the Property, Landlord's reasonable attorneys' fees incurred in
connection therewith, and any real estate commission paid or payable. As used in
subparts (i) and (ii) above, the "worth at the time of the award" is computed by
allowing interest on unpaid amounts at the rate of fifteen percent (15%) per
annum, or such lesser amount as may then be the maximum lawful rate. As used in
subpart (iii) above, the "worth at the time of the ward" is computed by
discounting such amount at the prime rate of the Wells Fargo Bank at the time of
the award, plus one percent (1%) interest. If Tenant has abandoned the Property,
Landlord shall have the option of (i) retaking possession of the Property and
recovering from Tenant the amount specified in this Paragraph 10.03 (a), or
(iii) proceeding under Paragraph 10.03 (b);

     (b) Maintain Tenant's right to possession, in which case this Lease shall
continue in effect whether or not Tenant has abandoned the Property. In such
event, Landlord shall be entitled to enforce all of Landlord's rights and
remedies under this Lease, including the right to recover the rent as it becomes
due; Landlord shall have the remedy described in California Civil Code Section
1951.4 (lessor may continue lease in effect after lessee's breach and
abandonment and recover rent as it becomes due, if lessee has the right to
sublet or assign, subject only to reasonable limitations);

     (c) Pursue any other remedy now or hereafter available to Landlord under
the laws or judicial decisions of the state in which the Property is located.

     Section 10.04. REPAYMENT OF "FREE" RENT. If this Lease provides for
postponement of any monthly rental payments, a period of "free" rent or other
rent concession, such postponed rent or "free" rent is called the "Abated Rent".
Tenant shall be credited with having paid all of the Abated Rent on the
expiration of the Lease Term only if Tenant has fully, faithfully, and
punctually performed all of Tenant's obligations hereunder, including the
payment of all rent (other than the Abated Rent) and all other monetary
obligations and the surrender of the Property in the physical condition required
by this Lease. Tenant acknowledges that its right to receive credit for the
Abated Rent is absolutely conditioned upon Tenant's full, faithful and punctual
performance of its obligations under this Lease. If Tenant defaults and does not
cure within any applicable grace period the Abated Rent shall immediately become
due and payable in full and this Lease shall be enforced as if there were no
such rent abatement or other rent concession. In such case Abated Rent shall be
calculated based on the full initial rent payable under this Lease.

     Section 10.05. AUTOMATIC TERMINATION. Notwithstanding any other term or
provision hereof to the contrary, the Lease shall terminate on the occurrence of
any act which affirms the Landlord's intention to terminate the Lease as
provided in Section 10.03 hereof, including the filing of an unlawful detainer
action against Tenant. On such termination, Landlord's damages for default shall
include all costs and fees, including reasonable attorneys' fees that Landlord
incurs in connection with the filing, commencement, pursuing and/or defending of
any action in any bankruptcy court or other court with

----------
(1)  If Tenant shall be served with a demand for the payment of past due rent or
     any other charge, any payments rendered thereafter to cure any default by
     Tenant shall be made only by cashier's check.

<PAGE>

respect to the Lease; the obtaining of relief from any stay in bankruptcy
restraining any action to evict Tenant; or the pursuing of any action with
respect to Landlord's right to possession of the Property. All such damages
suffered (apart from Base Rent and other rent payable hereunder) shall
constitute pecuniary damages which must be reimbursed to Landlord prior to
assumption of the Lease by Tenant or any successor to Tenant in any bankruptcy
or other proceeding.

     Section 10.06. CUMULATIVE REMEDIES. Landlord's exercise of any right or
remedy shall not prevent it from exercising any other right or remedy.

ARTICLE ELEVEN: PROTECTION OF LENDERS

     Section 11.01. SUBORDINATION. Landlord shall have the right to subordinate
this Lease to any ground lease, deed of trust or mortgage encumbering the
Property, any advances made on the security thereof and any renewals,
modifications, consolidations, replacements or extensions thereof, whenever made
or recorded. Tenant shall cooperate with Landlord and any lender which is
acquiring a security interest in the Property or Lease. Tenant shall execute
such further documents and assurances as such lender may require in the form
attached hereto as Exhibit "B" or such other form as is then required by
Landlord's lender, provided that Tenant's obligations under this Lease shall not
be increased in any material way (the performance of ministerial acts shall not
be deemed material), and Tenant shall not be deprived of its rights under this
Lease. Landlord shall use commercially reasonable efforts to provide Tenant with
a nondisturbance agreement from Landlord's future lenders. Tenant's right to
quiet possession of the Property during the Lease Term shall not be disturbed if
Tenant pays the rent and performs all of Tenant's obligations under this Lease
and is not otherwise in default. If any ground lessor, beneficiary or mortgagee
elects to have this Lease prior to the lien of its ground lease, deed of trust
or mortgage and gives written notice thereof to Tenant, this Lease shall be
deemed prior to such ground lease, deed of trust or mortgage whether this Lease
is dated prior or subsequent to the date of said ground lease, deed of trust or
mortgage or the date of recording thereof. Tenant waives the provisions of any
current or future statute, rule or law which may give or purport to give Tenant
any right or election to terminate or otherwise adversely affect this Lease and
the obligations of the Tenant hereunder in the event of any foreclosure
proceeding or sale.

     Section 11.02. ATTORNMENT. If Landlord's interest in the Property is
acquired by any ground lessor, beneficiary under a deed of trust, mortgagee, or
purchaser at a foreclosure sale, Tenant shall attorn to the transferee of or
successor to Landlord's interest in the Property and recognize such transferee
or successor as Landlord under this Lease. Tenant waives the protection of any
statute or rule of law which gives or purports to give Tenant any right to
terminate this Lease or surrender possession of the Property upon the transfer
of Landlord's interest.

     Section 11.03. SIGNING OF DOCUMENTS. Tenant shall sign and deliver any
instrument or documents necessary or appropriate to evidence any such attornment
or subordination or agreement to do so. If Tenant fails to do so within twenty
(20) days after written request, Tenant hereby makes, constitutes and
irrevocably appoints Landlord, or any transferee or successor of Landlord, the
attorney-in-fact of Tenant to execute and deliver any such instrument or
document.

     Section 11.04. ESTOPPEL CERTIFICATES.

     (a) Upon Landlord's written request, Tenant shall execute, acknowledge and
deliver to Landlord a written statement in the form attached hereto as Exhibit
"C" or such other form as is then required by Landlord's lender, certifying: (i)
that none of the terms or provisions of this Lease have been changed (or if they
have been changed, stating how they have been changed); (ii) that this Lease has
not been cancelled or terminated; (iii) the last date of payment of the Base
Rent and other charges and the time period covered by such payment; (iv) that
Landlord is not in default under this Lease (or, if Landlord is claimed to be in
default, stating why); and (v) such other representations or information with
respect to Tenant or the Lease as Landlord may reasonably request or which any
prospective purchaser or

<PAGE>

encumbrancer of the Property may require. Tenant shall deliver such statement to
Landlord within thirty (30) days after Landlord's request. Landlord may give any
such statement by Tenant to any prospective purchaser or encumbrancer of the
Property. Such purchaser or encumbrancer may rely conclusively upon such
statement as true and correct.

     (b) If Tenant does not deliver such statement to Landlord within a thirty
(30)-day period, Landlord, and any prospective purchaser or encumbrancer, may
conclusively presume and rely upon the following facts: (i) that the terms and
provisions of this Lease have not been changed except as otherwise represented
by Landlord; (ii) that this Lease has not been cancelled or terminated except as
otherwise represented by Landlord; (iii) that not more than one month's Base
Rent or other charges have been paid in advance; and (iv) that Landlord is not
in default under the Lease. In such event, Tenant shall be estopped from denying
the truth of such facts.

     Section 11.05. TENANT'S FINANCIAL CONDITION. Within ten (10) days after
written request from Landlord, Tenant shall deliver to Landlord such financial
statements as Landlord reasonably requires to verify the net worth of Tenant or
any assignee, subtenant, or guarantor of Tenant. In addition, Tenant shall
deliver to any lender designated by Landlord any financial statements required
by such lender to facilitate the financing or refinancing of the Property.
Tenant represents and warrants to Landlord that each such financial statement is
a true and accurate statement as of the date of such statement. All financial
statements shall be confidential and shall be used only for the purposed set
forth in this Lease. See Addendum Section 11.05.

ARTICLE TWELVE: LEGAL COSTS

     Section 12.01. LEGAL PROCEEDINGS. If Tenant or Landlord shall be in breach
or default under this Lease, such party (the "Defaulting Party") shall reimburse
the other party (the "Nondefaulting party") upon demand for any costs or
expenses that the Nondefaulting Party incurs in connection with any breach or
default of the Defaulting Party under this Lease, whether or not suit is
commenced or judgment entered. Such costs shall include legal fees and costs
incurred for the negotiation of a settlement, enforcement of rights or
otherwise. Furthermore, if any action for breach of or to enforce the provisions
of this Lease is commenced, the court in such action shall award to the party in
whose favor a judgment is entered, a reasonable sum as attorneys' fees and
costs. The losing party in such action shall pay such attorneys' fees and costs.
Tenant shall also indemnify Landlord against and hold Landlord harmless from all
costs, expenses, demands and liability Landlord may incur if Landlord becomes or
is made a party to any claim or action (a) instituted by Tenant against any
third party, or by any third party against Tenant, or by or against any person
holding any interest under or using the Property by license of or agreement with
Tenant; (b) for foreclosure of any lien for labor or material furnished to or
for Tenant or such other person; (c) otherwise arising out of or resulting from
any act or transaction of Tenant or such other person; or (d) necessary to
protect Landlord's interest under this Lease in a bankruptcy proceeding, or
other proceeding under Title 11 of the United States Code, as amended. Tenant
shall defend Landlord against any such claim or action at Tenant's expense with
counsel reasonably acceptable to Landlord or, at Landlord's election, Tenant
shall reimburse Landlord for any legal fees or costs Landlord incurs in any such
claim or action.

     Section 12.02. LANDLORD'S CONSENT. Tenant shall pay Landlord's reasonable
attorneys' fees incurred in connection with Tenant's request for Landlord's
consent under Article Nine (Assignment and Subletting) at a cost not to exceed
FIVE HUNDRED AND NO/100 DOLLARS ($500.00) for each consent in the ordinary
course of business provided that Landlord's standard consent form if used, or in
connection with any other act which Tenant proposed to do and which requires
Landlord's consent.

ARTICLE THIRTEEN: MISCELLANEOUS PROVISIONS

     Section 13.01. NON-DISCRIMINATION. Tenant promises, and it is a condition
to the continuance of this Lease, that there will be no discrimination against,
or segregation of, any person or group of
<PAGE>

persons on the basis of race, color, sex, creed, national origin or ancestry in
the leasing, subleasing, transferring, occupancy, tenure or use of the Property
or any portion thereof.

     Section 13.02. LANDLORD'S LIABILITY; CERTAIN DUTIES.

     (a) As used in this Lease, the term "Landlord" means only the current owner
or owners of the fee title to the Property or the leasehold estate under a
ground lease of the Property at the time in question. Each Landlord is obligated
to perform the obligations of Landlord under this Lease only during the time
such Landlord owns such interest or title. Any Landlord who transfers its title
or interest is relieved of all liability with respect to the obligations of
Landlord under this Lease to be performed on or after the date of transfer.
However, each Landlord shall deliver to its transferee all funds that Tenant
previously paid if such funds have not yet been applied under the terms of this
Lease.

     (b) Tenant shall give written notice of any failure by Landlord to perform
any of its obligations under this lease to Landlord and to any ground lessor,
mortgagee or beneficiary under any deed of trust encumbering the Property whose
name and address have been furnished to Tenant in writing. Landlord shall not be
in default under this Lease unless Landlord (or such ground lessor, mortgagee or
beneficiary) fails to cure such non-performance within thirty (30) days after
receipt of Tenant's notice. However, if such non-performance reasonably requires
more than thirty (30) days to cure, Landlord shall not be in default if such
cure is commenced within such thirty (30)-day period and thereafter diligently
pursued to completion.

     (c) Notwithstanding any term or provision herein to the contrary, the
liability of Landlord for the performance of its duties and obligations under
this Lease is limited to Landlord's interest in the Property, and neither the
Landlord nor its partners, shareholders, officers or other principals shall have
any personal liability under this Lease.

     Section 13.03. SEVERABILITY. A determination by a court of competent
jurisdiction that any provision of this Lease or any part thereof is illegal or
unenforceable shall not cancel or invalidate the remainder of such provision or
this Lease, which shall remain in full force and effect.

     Section 13.04. INTERPRETATION. The captions of the Articles or Sections of
this Lease are to assist the parties in reading this Lease and are not a part of
the terms or provisions of this Lease. Whenever required by the context of this
Lease, the singular shall include the plural and the plural shall include the
singular. The masculine, feminine and neuter genders shall each include the
other. In any provision relating to the conduct, acts or omissions of Tenant,
the term "Tenant" shall include Tenant's agents, employees, contractors,
invitees, successors or others using the Property with Tenant's expressed or
implied permission.

     Section 13.05. INCORPORATION OF PRIOR AGREEMENTS; MODIFICATIONS. This Lease
is the only agreement between the parties pertaining to the lease of the
Property and no other agreements are effective. All amendments to this Lease
shall be in writing and signed by all parties. Any other attempted amendment
shall be void.

     Section 13.06. NOTICES. All notices required or permitted under this Lease
shall be in writing and shall be personally delivered or sent by certified mail,
return receipt requested, postage prepaid. Notices to Tenant shall be delivered
to the address specified in Section 1.03 above. Notices to Landlord shall be
delivered to the address specified in Section 1.02 above. All notices shall be
effective upon delivery or evidence of refusal of delivery. Either party may
change its notice address upon written notice to the other party.

     Section 13.07. WAIVERS. All waivers must be in writing and signed by the
waiving party. Landlord's failure to enforce any provision of this Lease or its
acceptance of rent shall not be a waiver and shall not prevent Landlord from
enforcing that provision or any other provision of this Lease in the

<PAGE>

future. No statement on a payment check from Tenant or in a letter accompanying
a payment check shall be binding on Landlord. Landlord may, with or without
notice to Tenant, negotiate such check without being bound to the conditions of
such statement.

     Section 13.08. NO RECORDATION. Tenant shall not record this Lease without
prior written consent from Landlord. However, either Landlord or Tenant may
require that a "Short Form" memorandum of this Lease executed by both parties be
recorded. The party requiring such recording shall pay all transfer taxes and
recording fees.

     Section 13.09. BINDING EFFECT; CHOICE OF LAW. This Lease binds any party
who legally acquires any rights or interest in this Lease from Landlord or
Tenant. However, Landlord shall have no obligation to Tenant's successor unless
the rights or interests of Tenant's successor are acquired in accordance with
the terms of this Lease. The laws of the state in which the Property is located
shall govern this lease.

     Section 13.10. CORPORATE AUTHORITY; PARTNERSHIP AUTHORITY. If Tenant is a
corporation, each person signing this Lease on behalf of Tenant represents and
warrants that he has full authority to do so and that this Lease binds the
corporation. Within thirty (30) days after this Lease is signed, Tenant shall
deliver to Landlord a certified copy of a resolution of Tenant's Board of
Directors authorizing the execution of this Lese or other evidence of such
authority reasonably acceptable to Landlord. If Tenant is a partnership, each
person or entity signing this Lease for Tenant represents and warrants that he
or it is a general partner of the partnership, that he or it has full authority
to sign for the partnership and that this Lease binds the partnership and all
the general partners of the partnership. Tenant shall give written notice to
Landlord of any general partner's withdrawal or addition. Within thirty (30)
days after this Lease is signed, Tenant shall deliver to Landlord a copy of
Tenant's recorded statement of partnership or certificate of limited
partnership.

     Section 13.11. JOINT AND SEVERAL LIABILITY. All parties signing this Lease
as Tenant shall be jointly and severally liable for all obligations of Tenant.

     Section 13.12. FORCE MAJEURE. If Landlord cannot perform any of its
obligations due to events beyond Landlord's control, the time provided for
performing such obligations shall be extended by a period of time equal to the
duration of such events. Events beyond Landlord's control include, but are not
limited to, acts of God, war, civil commotion, labor disputes, strikes, fire,
flood or other casualty, shortages of labor or material, government regulation
or restriction and weather conditions.

     Section 13.13. EXECUTION OF LEASE. This Lease may be executed in
counterparts and, when all counterpart documents are executed, the counterparts
shall constitute a single binding instrument. Landlord's delivery of this Lease
to Tenant shall not be deemed to be an offer to lease and shall not be binding
upon either party until executed and delivered by both parties.

     Section 13.14. SURVIVAL. All representations and warranties of Landlord and
Tenant shall survive the termination of this Lease.

ARTICLE FOURTEEN: BROKERS

     Section 14.01. BROKER'S FEE. When this lease is signed by and delivered to
both Landlord and Tenant, Landlord shall pay a real estate commission to
Landlord's Broker named in Section 1.08 above, if any, as provided in the
written agreement between Landlord and Landlord's Broker, or the sum stated in
Section 1.09 above for services rendered to Landlord by Landlord's Broker in
this transaction. Landlord shall pay Landlord's Broker a commission if Tenant
exercises any option to extend the Lease Term or to buy the Property, or any
similar option or right to which Landlord may grant to Tenant, or if Landlord's
Broker is the procuring cause of any other lease or sale entered into between
Landlord and Tenant covering the Property. Such commission shall be the amount
set forth in Landlord's Broker's

<PAGE>

commission schedule in effect as of the execution of this Lease. If a Tenant's
Broker is named in Section 1.08 above, Landlord's Broker shall pay an
appropriate portion of its commission to Tenant's Broker if so provided in any
agreement between Landlord's Broker and Tenant's Broker. Nothing contained in
this Lease shall impose any obligation on Landlord to pay a commission or fee to
any party other than Landlord's Broker.

     Section 14.02. PROTECTION OF BROKERS. If Landlord sells the Property, or
assigns Landlord's interest in this Lease, the buyer or assignee shall, by
accepting such conveyance of the Property or assignment of the Lease, be
conclusively deemed to have agreed to make all payments to Landlord's Broker
thereafter required of Landlord under this Article Fourteen. Landlord's Broker
shall have the right to bring a legal action to enforce or declare rights under
this provision. The prevailing party in such action shall be entitled to
reasonable attorneys' fees to be paid by the losing party. Such attorneys' fees
shall be fixed by the court in such action. This Paragraph is included in this
Lease for the benefit of Landlord's Broker.

     Section 14.03. BROKER'S DISCLOSURE OF AGENCY. Landlord's Broker hereby
discloses to Landlord and Tenant and Landlord and Tenant hereby consent to
Landlord's Broker acting in this transaction as the agent of (check one):

     [X]  Landlord exclusively; or

     [ ]  both Landlord and Tenant.

     Section 14.04. NO OTHER BROKER. Tenant represents and warrants to Landlord
that the brokers name in Section 1.08 above are the only agents, brokers,
finders or other parties with whom Tenant has dealt who are or may be entitled
to any commission or fee with respect to this Lease or the Property.

     ADDITIONAL PROVISIONS MAY BE SET FORTH IN A RIDER OR RIDERS ATTACHED HERETO
OR IN THE BLANK SPACE BELOW. IF NO ADDITIONAL PROVISIONS ARE INSERTED, PLEASE
DRAW A LINE THROUGH THE SPACE BELOW.

     Landlord and Tenant have signed this Lease at the place and on the dates
specified adjacent to their signatures below and have initialed all Riders which
are attached to or incorporated by reference in this Lease.

                                         "LANDLORD"

Signed on May 13, 1999                   MICO ARCHIBALD
                                         PARTNERS, L.L.C. a Delaware
at 13191 Crossroads Pkwy. N.,            limited liability company
6th Floor, City of Industry, CA
91746                                    By: Majestic Realty Co., its manager

                                         By: /s/ David A. Wheeler
                                             -----------------------------------
                                         Its: Executive Vice President

                                         By: /s/ Jay H. Bradford
                                             -----------------------------------
                                         Its: Vice Resident-Finance

                                         "TENANT"

<PAGE>

Signed on               , 19             ANDERSON NEWS LLC, a Delaware
          --------------    --           limited liability company
at                                  .
   ---------------------------------

                                         By:
                                             -----------------------------------
                                         Its: President

                                         By: /s/ Jay Maier
                                             -----------------------------------
                                         Its: CFO

     IN ANY REAL ESTATE TRANSACTION, IT IS RECOMMENDED THAT YOU CONSULT WITH A
PROFESSIONAL, SUCH AS A CIVIL ENGINEER, INDUSTRIAL HYGIENIST OR OTHER PERSON
WITH EXPERIENCE IN EVALUATING THE CONDITION OF THE PROPERTY, INCLUDING THE
POSSIBLE PRESENCE OF ASBESTOS, HAZARDOUS MATERIALS AND UNDERGROUND STORAGE
TANKS.

     THIS PRINTED FORM LEASE HAS BEEN DRAFTED BY LEGAL COUNSEL AT THE DIRECTION
OF THE SOUTHERN CALIFORNIA CHAPTER OF THE SOCIETY OF INDUSTRIAL AND OFFICE
REALTORS, (R) INC. NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE SOUTHERN
CALIFORNIA CHAPTER OF THE SOCIETY OF INDUSTRIAL AND OFFICE REALTORS, (R) INC.,
ITS LEGAL COUNSEL, THE REAL ESTATE BROKERS NAMED HEREIN, OR THEIR EMPLOYEES OR
AGENTS, AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT OR TAX CONSEQUENCES OF THIS
LEASE OR OF THIS TRANSACTION. LANDLORD AND TENANT SHOULD RETAIN LEGAL COUNSEL TO
ADVISE THEM ON SUCH MATTERS AND SHOULD RELY UPON THE ADVISE OF SUCH LEGAL
COUNSEL.

<PAGE>

                              OPTION TO EXTEND TERM

                                   LEASE RIDER

     This Rider is attached to and made part of that certain Lease (the "Lease")
dated March 22, 1999 between MICO ARCHIBALD PARTNERS, L.L.C., a Delaware limited
liability company, as Landlord and ANDERSON NEWS LLC, a Delaware limited
liability company, as Tenant, covering the Property commonly known as 2590 East
Lindsay Privado, Ontario, California (the "Property"). The terms used herein
shall have the same definitions as set forth in the Lease. The provisions of
this Rider shall supersede any inconsistent or conflicting provisions of the
Lease.

A.   OPTION(S) TO EXTEND TERM.

     1. Landlord hereby grants to Tenant two (2) option(s) (the "Option(s)") to
extend the Lease Term for additional term(s) of five (5) years each (the
"Extension(s)"), on the same terms and conditions as set forth in the Lease, but
at an increased rent as set forth below. Each Option shall be exercised only by
written notice delivered to Landlord at least one hundred eighty (180) days
before the expiration of the Lease Term or the preceding Extension of the Lease
Term, respectively. If Tenant fails to deliver Landlord written notice of the
exercise of an Option within the prescribed time period, such Option and any
succeeding Options shall lapse, and there shall be no further right to extend
the Lease Term. Each Option shall be exercisable by Tenant on the express
conditions that (a) at the time of the exercise, and at all times prior to the
commencement of such Extension, Tenant shall not be in default under any of the
provisions of this Lease and (b) Tenant has not been ten (10) or more days late
in the payment of rent more than a total of five (5) times during the Lease Term
and all preceding Extensions.

     2. Personal Options.

     The Option(s) are personal to the Tenant named in Section 1.03 of the Lease
or any Tenant's Affiliate described in Section 9.02 of the Lease. If Tenant
subleases any portion of the Property or assigns or otherwise transfers its
interest under the Lease to an entity other than a Tenant Affiliate prior to the
exercise of an Option (whether with or without Landlord's consent), such Option
and any succeeding Options shall lapse. If Tenant subleases any portion of the
Property or assigns or otherwise transfers any interest of Tenant under the
Lease to an entity other than a Tenant Affiliate after the exercise of an Option
but prior to the commencement of the respective Extension (whether with or
witout Landlord's consent), such Option and any succeeding Options shall lapse
and the Lease Term shall expire as if such Option were not exercised. If Tenant
subleases any portion of the Property or assigns or otherwise transfers any
interest of Tenant under the Lease in accordance with Article 9 of the Lease
after the exercise of an Option and after the commencement of the Extension
related to such Option, then the term of the Lease shall expire upon the
expiration of the Extension during which such subleases or transfer occurred and
only the succeeding Options shall lapse.

B.   CALCULATION OF RENT.

     The Base Rent during the Extension(s) shall be determined by one or a
combination of the following methods (INDICATE YOUR CHOICE UPON EXECUTION OF THE
LEASE):

     1. Cost of Living Adjustment (Section B(1), below)   [X]

     2. Fair Rental Value Adjustment (Section B(2) below) [ ]

     3. Fixed Adjustment (Section B(3) below)             [ ]

<PAGE>

     1. Cost of Living Adjustment

     The Base Rent shall be increased on the first day of the first and
thirtieth month(s) of the first and second Extension(s) of the Lease Term (the
"Rental Adjustment Date") by reference to the Index defined in Section 3.02 of
the Lease or the substitute index described in Section 3.02 of the Lease, as
follows: The Base Rent in effect immediately prior to the applicable Rental
Adjustment Date (the "Comparison Base Rent") shall be increased by the
percentage that the Index has increased from the month in which the payment of
the Comparison Base Rent commenced through the month in which the applicable
Rental Adjustment Date occurs. In no event shall the Base Rent be reduced by
reason of such computation.

<PAGE>

                    ADDENDUM TO INDUSTRIAL REAL ESTATE LEASE

     This Addendum ("ADDENDUM") is made and entered into by MICO ARCHIBALD
PARTNERS, L.L.C., a Delaware limited liability company ("LANDLORD") and ANDERSON
NEWS LLC, a Delaware limited liability company ("TENANT"), and is dated as of
the date set forth on Section 1.01 of the Industrial Real Estate Lease between
Landlord and Tenant ("LEASE") to which this Addendum is attached. The promises,
covenants, agreements and declarations made and set forth herein are intended to
and shall have the same force and effect as if set forth at length in the body
of the Lease. To the extent that the provisions of this Addendum are
inconsistent with the terms and conditions of the Lease, the terms and
conditions of this Addendum shall control.

SECTION 2.02 DELAY IN COMMENCEMENT.

     Landlord shall provide Tenant with forty-two (42) days prior notice of the
date Landlord estimates as the estimated Lease Commencement Date (the "Estimate
Date"). If Landlord does not deliver the Property within seven (7) days after
the Estimate Date ("Grace Period"), then the sole remedy of Tenant for such
failure shall be the right to rent abatement in the amount equal to One Thousand
Five Hundred Twenty-Five and 16/100 Dollars ($1,525.16) for each day of actual
delay commencing after the Grace Period and continuing until the Lease
Commencement Date, which rent abatement shall be applied to the Base Rent
payable beginning in the third month of the Lease Term (the first month being
abated pursuant to Section 3.01) and continuing thereafter until fully applied.
Estimate Date shall be extended to the extent of any delays (i) beyond the
reasonable control of Landlord, including a Force Majeure and any delays in
obtaining permits or approvals and (ii) as a result of any "Tenant Delay," as
that term is defined in Section 5 of Exhibit "E", the Tenant Work Letter
attached hereto. Tenant's rights to rent abatement as set forth in this Section
2.02 shall be Tenant's sole and exclusive remedy at law or in equity for the
failure of the Lease Commencement Date by the Grace Period.

SECTION 2.05 TENANT'S ENTRY INTO THE PROPERTY PRIOR TO COMMENCEMENT DATE.

     Tenant shall have the right to access the Property commencing thirty (30)
days prior to the Lease Commencement Date for the purpose of installing and/or
storing over standard equipment or fixtures and preparing the Property for
Tenant's use; provided that: (i) this Lease has been fully executed and
delivered; (ii) Landlord has received the Security Deposit and first month's
Base Rent; (iii) Tenant and its agents do not interfere with Landlord's work on
the Property; (iv) prior to Tenant's entry into the Property, Tenant shall
submit a schedule to Landlord for approval, which schedule shall detail the
timing and purpose of Tenant's entry; (v) Tenant has obtained its insurance
policies as set forth in Section 4.04 of this Lease and Landlord is in receipt
of Tenant's insurance binder or certificate naming Landlord as additional
insured; and (vi) all of the terms and conditions of this Lease shall apply,
other than Tenant's obligation to pay Base Rent, as though the Commencement Date
had occurred (although the Commencement Date shall not actually occur until the
occurrence of the same pursuant to the terms of the third sentence of Section
2.01) upon such entry into the Property by Tenant. Tenant shall hold Landlord
harmless from and indemnify, protect and defend Landlord against any loss or
damage to the Property and against injury to any persons caused by Tenant's
actions or anyone's actions who are directly or indirectly employed by the
Tenant. Tenant shall assume all risk of loss to Tenant's personal property,
merchandise and fixtures.

SECTION 3.01 TIME & MANNER OF PAYMENT.

<PAGE>

     Provided that Tenant is not in default under the terms of this Lease,
Tenant shall be entitled to a one-time Base Rent credit in an amount equal to
FORTY-SEVEN THOUSAND TWO HUNDRED EIGHTY AND NO/100 DOLLARS ($47,280.00), which
is attributable to the Base Rent due for the first month beginning on the Lease
Commencement Date.

SECTION 4.04 INSURANCE POLICIES.

     Section 4.04(d) (iii) is hereby amended by adding the following at the end
     thereof:

     "Tenant may carry such insurance under a 'blanket' policy provided such
     blanket policy expressly affords the coverage required by this Lease and
     contains a per location aggregate endorsement and evidence thereof is
     furnished to Landlord."

     Section 4.04(d) (iv) is hereby amended by adding the following at the end
     thereof:

     "If Landlord or Tenant fails to carry the amounts and types of insurance
     required to be carried pursuant to this Section 4.04, in addition to any
     remedies Landlord or Tenant may have under this Lease, such failure shall
     be deemed to be a covenant and agreement by the party failing to carry such
     insurance to self-insure with respect to the type and amount of insurance
     such party so failed to carry, with full waiver of subrogation with respect
     thereto."

SECTION 5.03 HAZARDOUS MATERIALS.

     5.03.1 DEFINITIONS.

     A. "Hazardous Material" means any substance, whether solid, liquid or
gaseous in nature:

          (i) the presence of which requires investigation or remediation under
any federal, state or local statute, regulation, ordinance, order, action,
policy or common law; or

          (ii) which is or becomes defined as a "hazardous waste," "hazardous
substance," pollutant or contaminant under any federal state or local statute,
regulation, rule or ordinance or amendments thereto including, without limiting,
the Comprehensive Environmental Response, Compensation and Liability Act (42
U.S.C. section 9601 et seq.) and/or the Resource Conservation and Recovery Act
(42 U.S.C. section 6901 et seq.), the Hazardous Materials Transportation Act (49
U.S.C. section 1801 et seq.), the Federal Water Pollution Control Act (33 U.S.C.
section 1251 et seq.), the Clean Air Act (42 U.S.C. section 7401 et seq.), the
Toxic Substance Control Act, as amended (15 U.S.C. section 2601 et seq.), and
the Occupational Safety and Health Act (29 U.S.C. section 651 et seq.), as these
laws have been amended or supplemented; or

          (iii) which is toxic, explosive, corrosive, flammable, infectious,
radioactive, carcinogenic, mutagenic, or otherwise hazardous or is or becomes
regulated by any governmental authority, agency, department, commission, board,
agency or instrumentality of the United States, the State of California or any
political subdivision thereof; or

          (iv) the presence of which on the Property causes or threatens to
cause a nuisance upon the Property or to adjacent properties or poses or
threatens to pose a hazard to the health or safety of persons on or about the
Property; or

          (v) the presences of which on adjacent properties could constitute a
trespass by Tenant; or

<PAGE>

          (vi) without limitation which contains gasoline, diesel fuel or other
petroleum hydrocarbons; or

          (vii) without limitation which contains polychlorinated biphenyls
(PCBs), asbestos or urea formaldehyde foam insulation; or

          (viii) without limitation which contains radon gas.

     B. "Environmental Requirements" means all applicable present and future:

          (i) statutes, regulations, rules, ordinances, codes, licenses,
permits, orders, approvals, plans, authorization, concessions, franchises, and
similar items (including, but not limited to those pertaining to reporting,
licensing, permitting, investigation and remediation), of all Governmental
Agencies; and

          (ii) all applicable judicial, administrative, and regulatory decrees,
judgments, and orders relating to the protection of human health or the
environment, including, without limitation, all requirements pertaining to
emissions, discharges, releases, or threatened releases of Hazardous Materials
or chemical substances into the air, surface water, groundwater or land, or
relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport, or handling of Hazardous Materials or chemical substances.

     C. "Environmental Damages" means all claims, judgments, damages, losses,
penalties, fines, liabilities (including strict liability), encumbrances, liens,
costs, and expenses (including the expense of investigation and defense of any
claim, whether or not such claim is ultimately defeated, or the amount of any
good faith settlement or judgment arising from any such claim) of whatever kind
or nature, contingent or otherwise, matured or unmatured, foreseeable or
unforeseeable (including without limitation reasonable attorneys' fees and
disbursements and consultants' fees) any of which are incurred at any time as a
result of the existence of Hazardous Material upon, about, or beneath the
Property or migrating or threatening to migrate to or from the Property, or the
existence of a violation of Environmental Requirements pertaining to the
Property and the activities thereon, regardless of whether the existence of such
Hazardous Material or the violation of Environmental Requirements arose prior to
the present ownership or operation of the Property. Environmental Damages
include, without limitation:

          (i) damages for personal injury, or injury to property or natural
resources occurring upon or off of the Property, including, without limitation,
lost profits, consequential damages, the cost of demolition and rebuilding of
any improvements on real property, interest, penalties and damages arising from
claims brought by or on behalf of employees of Tenant (with respect to which
Tenant waives any right to raise as a defense against Landlord any immunity to
which it may be entitled under any industrial or workers compensation laws);

          (ii) fees, costs or expenses incurred for the services of attorneys,
consultants, contractors, experts, laboratories and all other costs incurred in
connection with the investigation or remediation of such Hazardous Materials or
violation of such Environmental Requirements, including, but not limited to, the
preparation of any feasibility studies or reports or the performance of any
cleanup, remediation, removal, response, abatement, containment, closure,
restoration or monitoring work required by any Governmental Agency or reasonably
necessary to make full economic use of the Property or any other property in a
manner consistent with its current use or otherwise expended in connection with
such conditions, and including without limitation any attorneys' fees, costs and
expenses incurred in enforcing the provisions of this Lease or collecting any
sums due hereunder;

<PAGE>

          (iii) liability to any third person or Governmental Agency to
indemnify such person or Governmental Agency for costs expended in connection
with the items referenced in subparagraph (ii) above; and

          (iv) diminution in the fair market value of the Property including
without limitation any reduction in fair market rental value or life expectancy
oF the Property or the improvements located thereon or the restriction on the
use of or adverse impact on the marketing of the Property or any portion
thereof.

     D. "Governmental Agency" means all governmental agencies, departments,
commissions, boards, bureaus or instrumentalities of the United States, states,
counties, cities and political subdivisions thereof.

     E. The "Tenant Group" means Tenant, Tenant's successors, assignees,
guarantors, officers, directors, agents, employees, invitees, permitees or other
parties under the supervision or control of Tenant or entering the Property
during the term of this Lease with the permission or knowledge of Tenant other
than Landlord or its agents or employees.

     5.03.2 PROHIBITIONS.

     A. Other than normal quantities of general office supplies and except
specified on Exhibit "D" attached hereto, Tenant shall not cause, permit or
suffer any Hazardous Material to be brought upon, treated, kept, stored,
disposed of, discharged, released, produced, manufactured, generated, refined or
used upon, about or beneath the Property by the Tenant Group, or any other
person without the prior written consent of Landlord. From time to time during
the term of this Lease, Tenant may request Landlord's approval of Tenant's use
of other Hazardous Materials, which approval may be withheld in Landlord's sole
discretion. Tenant shall, prior to the Commencement Date, provide to Landlord
for those Hazardous Materials described on Exhibit "D" (a) a description of
handling, storage, use and disposal procedures, and (b) all "community right to
know" plans or disclosures and/or emergency response plans which Tenant is
required to supply to local governmental agencies pursuant to any Environmental
Requirements.

     B. Tenant shall not cause, permit or suffer the existence or the commission
by the Tenant Group, or by any other person, of a violation of any Environmental
Requirements upon, about or beneath the Property.

     C. Tenant shall neither create or suffer to exist, nor permit the Tenant
Group to create or suffer to exist any lien, security interest or other charge
or encumbrance of any kind with respect to the Property, including without
limitation, any lien imposed pursuant to section 107(f) of the Superfund
Amendments and Reauthorization Act of 1986 (42 U.S.C. section 9607 (1)) or any
similar state statute.

     D. Tenant shall not install, operate or maintain any above or below grade
tank, sump, pit, pond, lagoon or other storage or treatment vessel or device on
the property without Landlord's prior written consent.

     5.03.3 INDEMNITY.

     A. Tenant, its successor, assigns and guarantors, agree to indemnify,
defend, reimburse and hold harmless:

<PAGE>

     (i) Landlord; and

     (ii) any other person who acquires all or a portion of the Property in any
manner (including purchase at a foreclosure sale) or who becomes entitled to
exercise the rights and remedies of Landlord under this Lease; and

     (iii) the directors, officers, shareholders, employees, partners, agents,
contractors, subcontractors, experts, licensees, affiliates, lessees,
mortgagees, trustees, heirs, devisees, successors, assigns and invitees of such
persons, from and against any and all Environmental Damages which exist as a
result of the activities or negligence of the Tenant Group or which exist as a
result of the breach of any warranty or covenant or the inaccuracy of any
representation of Tenant contained in this Lease, or by Tenant's remediation of
the Property or failure to meet its obligations contained in this Lease.

     B. The obligations contained in this Section 5.03 shall include, but not be
limited to, the burden and expense of defending all claims, suits and
administrative proceedings, even if such claims, suits or proceedings are
groundless, false or fraudulent, and conducting all negotiations of any
description, and paying and discharging, when and as the same become due, any
and all judgments, penalties or other sums due against such indemnified persons.
Landlord, at its sole expense, may employ additional counsel of its choice to
associate with counsel representing Tenant.

     C. Landlord shall have the right but not the obligation to join and
participate in, and control, if it so elects, any legal proceedings or actions
initiated in connection with Tenant's activities. Landlord may also negotiate,
defend, approve and appeal any action taken or issued by any applicable
governmental authority with regard to contamination of the Property by a
Hazardous Material.

     D. The obligations of Tenant in this paragraph shall survive the expiration
or termination of this Lease.

     E. The obligations of Tenant under this paragraph shall not be affected by
any investigation by or on behalf of Landlord, or by any information which
Landlord may have or obtain with respect hereto.

     5.03.4 OBLIGATION TO REMEDIATE.

     In addition to the obligation of Tenant to indemnify Landlord pursuant to
this Lease, Tenant shall, upon approval and demand of Landlord, at its sole cost
and expense and using contractors approved by Landlord, promptly take all
actions to remediate the Property which are required by any Governmental Agency,
or which are reasonably necessary to mitigate Environmental Damages or to allow
full economic use of the Property, which mitigation or remediation is
necessitated from the presence upon, about or beneath the Property, at any time
during or upon termination of this Lease, of a Hazardous Material existing as a
result of the activities or negligence of the Tenant Group or a violation of
Environmental Requirements existing as a result of the activities or negligence
of the Tenant Group. Such actions shall include, but not be limited to, the
investigation of the environmental condition of the Property, the preparation of
any feasibility studies, reports or remedial plans, and the performance of any
cleanup, remediation, containment, operation, maintenance, monitoring or
restoration work, whether on or off the Property, which shall be performed in a
manner approved by Landlord. Tenant shall take all actions necessary to restore
the Property to the condition existing prior to the introduction by the Tenant
Group of Hazardous Material upon, about or beneath the Property, notwithstanding
any lesser standard of remediation allowable under applicable law or
governmental policies.

<PAGE>

     5.03.5 RIGHT TO INSPECT.

     Landlord shall have the right in its sole and absolute discretion, but not
the duty, to enter and conduct an inspection of the Property, including invasive
tests, at any reasonable time to determine whether Tenant is complying with the
terms of the Lease, including but not limited to the compliance of the Property
and the activities thereon with Environmental Requirements and the existence of
Environmental Damages as a result of the condition of the Property or
surrounding properties and activities thereon. Landlord shall have the right,
but not the duty, to retain any independent professional consultant (the
"Consultant") to enter the Property to conduct such an inspection or to review
any report prepared by or for Tenant concerning such compliance. The cost of the
Consultant shall be paid by Landlord unless such investigation discloses a
violation of any Environmental Requirement by the Tenant Group or the existence
of a Hazardous Material on the Property or any other property caused by the
activities or negligence of the Tenant Group (other than Hazardous Materials
used in compliance with all Environmental Requirements and previously approved
by Landlord), in which case Tenant shall pay the cost of the Consultant. Tenant
hereby grants to Landlord, and the agents, employees, consultants and
contractors of Landlord the right to enter the Property and to perform such
tests on the Property as are reasonably necessary to conduct such reviews and
investigations. Landlord shall use commercially reasonable efforts to minimize
interference with the business of Tenant.

     5.03.6 NOTIFICATION.

     If Tenant shall become aware of or receive notice or other communication
concerning any actual, alleged, suspected or threatened violation of
Environmental Requirements, or liability of Tenant for Environmental Damages in
connection with the Property or past or present activities of any person
thereon, including but not limited to notice or other communication concerning
any actual or threatened investigation, inquiry, lawsuit, claim, citation,
directive, summons, proceeding, complaint, notice, order, writ, or injunction,
relating to same, then Tenant shall deliver to Landlord within ten (10) days of
the receipt of such notice or communication by Tenant, a written description of
said violation, liability, or actual or threatened event or condition, together
with copies of any documents evidencing same. Receipt of such notice shall not
be deemed to create any obligation on the part of Landlord to defend or
otherwise respond to any such notification.

     If requested by Landlord, Tenant shall disclose to Landlord the names and
amounts of all Hazardous Materials other than general office supplies referred
to in Section 5.03.2 of this Addendum, which were used, generated, treated,
handled, stored or disposed of on the Property or which Tenant intends to use,
generate, treat, handle, store or dispose of on the Property. The foregoing in
no way shall limit the necessity for Tenant obtaining Landlord's consent
pursuant to Section 5.03.2 of this Addendum.

     5.03.7 SURRENDER OF PREMISES.

     In the ninety (90) days prior to the expiration or termination of the Lease
Term, and for up to ninety (90) days after Tenant fully surrenders possession of
the Property, Landlord may have an environmental assessment of the Property
performed in accordance with Section 5.03.5 of this Addendum. Tenant shall
perform, at its sole cost and expense, any clean-up or remedial work recommended
by the Consultant which is necessary to remove, mitigate or remediate any
Hazardous Materials and/or contamination of the Property caused by the
activities or negligence of the Tenant Group.

     5.03.8 ASSIGNMENT AND SUBLETTING.

<PAGE>

     In the event the Lease provides that Tenant may assign the Lese or sublet
the Property subject to Landlord's consent and/or certain other conditions, and
if the proposed assignee's or sublessee's activities in or about the Property
involve the use, handling, storage or disposal of any Hazardous Materials other
than those used by Tenant and in quantities and processes similar to Tenant's
uses in compliance with the Addendum, (i) it shall be reasonable for Landlord to
withhold its consent to such assignment or sublease in light of the risk of
contamination posed by such activities and/or (ii) Landlord may impose an
additional condition to such assignment or sublease which requires Tenant to
reasonably establish that such assignee's or sublessee's activities pose no
materially greater risk of contamination to the Property than do Tenant's
permitted activities in view of the (a) quantities, toxicity and other
properties of the Hazardous Materials to be used by such assignee or sublessee,
(b) the precautions against a release of Hazardous Materials such assignee or
sublessee agrees to implement, (c) such assignee's or sublessee's financial
condition as it relates to its ability to fund a major clean-up and (d) such
assignee's or sublessee's policy and historical record respecting its
willingness to respond to the clean up of a release of Hazardous Materials.

     5.03.9 SURVIVAL OF HAZARDOUS MATERIALS OBLIGATION.

     Tenant's breach of any of its covenants or obligations under this Addendum
shall constitute a material default under the Lease. The obligations of Tenant
under this Addendum shall survive the expiration or earlier termination of the
Lease without limitation, and shall constitute obligations that are independent
and severable from Tenant's covenants and obligations to pay rent under the
Lease.

SECTION 5.04 SIGNS.

     Notwithstanding the foregoing, subject to Landlord's prior written
approval, which shall not be unreasonably withheld, delayed or conditioned, and
provided all signs are in keeping with the quality, design and style of the
industrial park within which the Property is located, Tenant, at its sole cost
and expense, may install identification signs on the Property; provided,
however, that (i) the size, color, location, materials and design of such sign
shall be subject to Landlord's prior written consent, which shall not be
unreasonably withheld, delayed or conditioned; (ii) such sign shall comply with
all applicable governmental rules and regulations and the Property's covenants,
conditions and restrictions; (iii) such sign shall not be painted directly on
the building or attached or placed on the roof or exterior of the building; (iv)
such sign shall be personal to the original Tenant named in Section 1.03 of this
Lease (and not any assignee, sublessee or transferee of Tenant's interest in
this Lease) ("ORIGINAL TENANT"); (v) such sign shall only advertise the Original
Tenant's distribution of printed matter business; and (vi) Tenant's continuing
signage right shall be contingent upon the Original Tenant actually occupying
the entire Property. Tenant shall be responsible for all costs incurred in
connection with the design, construction, installation, repair and maintenance
of Tenant's sign. Upon the expiration or earlier termination of this Lease,
Tenant shall cause Tenant's sign to be removed and shall repair any damage
caused by such removal. Any signs, notices, logos, pictures, names or
advertisements which are installed and that have not been separately approved by
Landlord may be removed by Landlord without notice by Landlord to Tenant at
Tenant's sole cost and expense.

SECTION 6.03 LANDLORD'S OBLIGATIONS.

     Subject to the provisions of Article Seven (Damage or Destruction) and
Article Eight (Condemnation), and except for damage caused by any act or
omission of Tenant, or Tenant's employees, agents, contractors or invitees,
Landlord shall keep the structural portions of the foundation, roof and the
exterior walls on the Property in good order, condition and repair.

<PAGE>

However, Landlord shall not be obligated to maintain or repair roof membrane,
windows, doors, plate glass or the surfaces of walls. Landlord shall not be
obligated to make any repairs under this Section 6.03 until a reasonable time
after receipt of written notice from Tenant of the need for such repairs. Tenant
waives the benefit of any present or future law which might give Tenant the
right to repair the Property at Landlord's expense or to terminate the Lease
because of the condition of the Property. Landlord hereby assigns to Tenant all
warranties and guaranties by the contractor who constructed the building and
Tenant Improvements located on the Property and Tenant waives all claims against
Landlord relating thereto.

SECTION 11.05

     Notwithstanding the forgoing, the Original Tenant shall not be required to
deliver to Landlord any financial statements provided however Tenant provides
Landlord with the names of Tenant's principal lenders and causes such lenders to
provide Landlord with financial information.

                                 ARTICLE FIFTEEN
                           REVENUE AND EXPENSE ACCOUNT

     Landlord and Tenant agree that, for all purposes (including any
determination under Section 467 of the Internal Revenue Code), rental income
will accrue to the Landlord and rental expenses will accrue to the Tenant in the
amounts and as of the dates rent is payable under the Lease.

                                 ARTICLE SIXTEEN
                   LANDSCAPE, FIRE SYSTEM AND PUMP MAINTENANCE

     Notwithstanding the provisions of Sections 6.03 and 6.04, Landlord shall
maintain, at Tenant's expense: (i) the landscaping of the Property and, if
applicable, the common areas; (ii) the ESFR fire system and (iii) pump. Such
landscape maintenance shall include gardening, tree trimming, replacement or
repair of landscaping, landscape irrigation systems and similar items and the
sweeping and cleaning of asphalt, concrete or other surfaces on the driveway,
parking areas, yard areas, loading areas or other paved or covered surfaces. In
connection with Landlord's obligations under this Article, Landlord may enter
into a contract with a contractor/maintenance provider of Landlord's choice to
provide some (but not necessarily all) of the maintenance services listed above.
Tenant's monthly cost of such contract, hereinafter referred to as the
"Maintenance Fee" is currently SEVEN HUNDRED FIFTY-TWO AND 94/100 DOLLARS
($752.94). Landlord shall use its commercially reasonable efforts to maintain
competitive contracts and shall promptly notify Tenant of any increase in the
Maintenance Fee. Tenant agrees to pay monthly to Landlord, as additional rent,
the Maintenance Fee. Tenant shall make such payment together with Tenant's
monthly rental payment, without the necessity of notice from Landlord. It is the
understanding of the parties that the Maintenance Fee only pertains to routine
maintenance on the Property and that Landlord may incur expenses in addition to
the Maintenance Fee in meeting its obligations set forth above. Tenant shall pay
Landlord, as additional rent, within ten (10) days after demand therefore, the
cost of such additional expenses.

                                ARTICLE SEVENTEEN
                                TERMINATION RIGHT

     At any time after the First (1st) anniversary of the Lease Commencement
Date, Tenant shall have the right to terminate this Lease in respect to that
certain approximate 34,895 square foot area ("TERMINATION Space") as outlined in
orange on Exhibit A, attached hereto, effective as of the date this Lease is
terminated with respect to the Termination Space ("TERMINATION

<PAGE>

DATE") provided that: (a) Landlord receives written notice (the "TERMINATION
NOTICE") from Tenant on or before the date which is six (6) months prior to the
Termination Date stating that Tenant intends to terminate this Lease with
respect to the Termination Space pursuant to the terms and conditions of this
Article 17; (b) concurrent with Landlord's receipt of the Termination Notice,
Landlord receives from Tenant the sum of (i) Eighty Thousand and No/100 Dollars
($80,000.00) and (ii) the brokers fee paid by Landlord (pursuant to Article 14
of this Lease) for the Termination Space for the period of time after the
Termination Date, as consideration for and as a condition precedent to such
early termination; and (c) Tenant has not been in default under this Lease as of
the date of Tenant's delivery of the Termination Notice or Termination Date and
(d) Tenant has not exercised its right to extend the initial Lease Term.
Provided that Tenant terminates this Lease, with respect to the Termination
Space, pursuant to the terms of this Article 17, this Lease, with respect to the
Termination Space, shall automatically terminate and be of no further force or
effect as of the Termination Date, and Landlord and Tenant shall be relieved of
their respective obligations under this Lease, with respect to the Termination
Space, specifically including, without limitation, any right, if any, Tenant may
have to audit or review Landlord's books and records or to contest Tenant's
payment of Other Periodic Payments; provided, however, notwithstanding anything
to the contrary contained in this Lease, with respect to any obligation of
Tenant under this Lease, with respect to the Termination Space, which accrues
prior to the Termination Date and is not satisfied by Tenant prior to the
Termination Date (e.g., Tenant's payment of Other Periodic Payments and Tenant's
repair obligations), and Tenant's obligations that survive the termination of
this Lease, with respect to the Termination Space, (including, without limiting
to, Tenant's obligation to remediate any Environmental Damages, Landlord shall
have all the rights and remedies with respect to such obligations as set forth
in this Lease, with respect to the Termination Space. Tenant shall vacate the
Termination Space pursuant to this Lease, and surrender and deliver exclusive
possession thereof to Landlord on or before the Termination Date in accordance
with the provisions of this Lease. In the event Tenant retains possession of the
Termination Space or any part thereof after the Termination Date, then the
provisions of Section 2.04 of this Lease shall apply. The rights contained in
this Article 17 shall be personal to the Original Tenant and Tenant Affiliate
and may only be exercised by the Original Tenant and Tenant Affiliate if the
Original Tenant and Tenant Affiliate occupies the entire Property.<PAGE>

                                                                    EXHIBIT 10.5

                                                                  EXECUTION COPY

                                      LEASE

                                     Between

                         STANDARD MANAGEMENT CORPORATION

                                    Landlord,

                                       and

                   STANDARD LIFE INSURANCE COMPANY OF INDIANA,

                                     Tenant,

                             Dated: As June 8, 2005

                                    Premises:

                          10689 N. Pennsylvania Street
                           Indianapolis, Indiana 46280

<PAGE>

                                TABLE OF CONTENTS

Business Terms

<TABLE>
<S>                                                                                                     <C>
ARTICLE 1.        Certain Other Definitions.....................................................         3
ARTICLE 2.        Term; Commencement Date; Access...............................................         5
ARTICLE 3.        Fixed Rent....................................................................         5
ARTICLE 4.        HVAC; Building Systems........................................................         6
ARTICLE 5.        Use...........................................................................         7
ARTICLE 6.        Compliance with Laws and Insurance Requirements...............................         7
ARTICLE 7.        Alterations and Installations.................................................         7
ARTICLE 8.        Fixtures and Equipment; Tenant's Property.....................................         8
ARTICLE 9.        Maintenance; Repairs..........................................................         9
ARTICLE 10.       Required Insurance............................................................         9
ARTICLE 11.       Damage; Restoration...........................................................        10
ARTICLE 12.       Condemnation..................................................................        11
ARTICLE 13.       Public Areas; Conference Rooms; Parking Lot...................................        11
ARTICLE 14.       Signs.........................................................................        12
ARTICLE 15.       Landlord's Access to Premises; Related Matters................................        12
ARTICLE 16.       Subordination: Estoppel Certificate; Attornment...............................        12
ARTICLE 17.       Surrender of Premises.........................................................        13
ARTICLE 18.       Assignment, Mortgaging, Subletting, etc.......................................        14
ARTICLE 19.       Quiet Enjoyment...............................................................        14
ARTICLE 20.       Real Estate Brokers...........................................................        14
ARTICLE 21.       Adjacent Excavation; Shoring; Construction....................................        14
ARTICLE 22.       Defaults; Conditional Limitations; Remedies...................................        15
ARTICLE 23.       Indemnification...............................................................        17
ARTICLE 24.       Notices.......................................................................        18
ARTICLE 25.       No Waivers....................................................................        18
ARTICLE 26.       No Representations by Landlord; Landlord's Interest; Transferee Landlords.....        18
ARTICLE 27.       Consent to Jurisdiction.......................................................        18
ARTICLE 28.       Termination of Current Lease..................................................        19
ARTICLE 29.       Miscellaneous.................................................................        19
</TABLE>

Exhibit A         Land
Exhibit B         Cleaning Specifications
Exhibit C         Building Rules

<PAGE>

                                      INDEX

<TABLE>
<CAPTION>
Defined Term                                                                       Article / Section
------------                                                                       -----------------
<S>                                                                                <C>
Additional Rent.................................................................                3.3
Alteration(s)...................................................................                1.1
Building........................................................................            Heading
Building Rules..................................................................               13.1
Building Systems................................................................                1.1
Business Day....................................................................                1.1
Business Hours..................................................................                1.1
City............................................................................                1.1
Commencement Date...............................................................     Business Terms
Condemnation....................................................................                1.1
Conference Rooms................................................................               13.3
Control.........................................................................                1.1
Damage..........................................................................                1.1
Deficiency......................................................................               22.4
Employee........................................................................                1.1
Encumbrance.....................................................................                1.1
Estoppel Certificate............................................................               16.3
Expiration Date.................................................................     Business Terms
Extra Water.....................................................................                4.5
Fees-And-Costs..................................................................                1.1
Fixed Rent......................................................................     Business Terms
Government Entity...............................................................                1.1
Hazardous Materials.............................................................                1.1
HVAC............................................................................                1.1
Indemnitees.....................................................................                1.1
Insurance Policy................................................................               10.3
Insurance Requirement...........................................................                1.1
Interest Rate...................................................................                1.1
Land............................................................................            Heading
Landlord........................................................................            Heading
Landlord's Account..............................................................     Business Terms
Landlord's Affiliates...........................................................                1.1
Law(s)..........................................................................                1.1
Lease...........................................................................            Heading
Lease Year......................................................................                1.1
Legal Proceeding................................................................                1.1
Liability Limit.................................................................     Business Terms
Lien............................................................................                1.1
New Landlord....................................................................               16.2
Non-Structural Alterations......................................................                1.1
Notice Addresses................................................................     Business Terms
Overtime Hours..................................................................                1.1
Parking Lot.....................................................................                1.1
Permitted Use...................................................................     Business Terms
Person..........................................................................                1.1
Premises........................................................................            Heading
Project.........................................................................                1.1
Public Areas....................................................................                1.1
Rent(s).........................................................................                1.1
Rent Payment Address............................................................      Business Terms
Required Insurance..............................................................          1.1, 10.1
Restoration.....................................................................                1.1
Senior Encumbrance..............................................................                1.1
State...........................................................................                1.1
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                  <C>
Telephone Room..................................................................                2.2
Tenant..........................................................................            Heading
Term............................................................................     Business Terms
Termination Notice..............................................................               22.2
Utilities.......................................................................                1.1
</TABLE>

<PAGE>

            LEASE (this "Lease") made as of this 8th day of June, 2005 between
STANDARD MANAGEMENT CORPORATION, an Indiana corporation having an address at
10689 N. Pennsylvania Street, Indianapolis, Indiana 46280, ("Landlord") and
STANDARD LIFE INSURANCE COMPANY OF INDIANA, an Indiana life insurance company
having an address c/o Capital Prospects, LLC, 100 Mallard Creek Road, Suite 197,
Louisville, Kentucky 40207 ("Tenant").

                             INTRODUCTORY STATEMENT

            Landlord is the owner of the building (the "Building") located at
10689 N. Pennsylvania Street, Indianapolis, Indiana 46280 (the "Land"). Tenant
desires to lease from Landlord, and Landlord is willing to lease to Tenant, the
first floor computer room and the entire second floor in the Building (the
"Premises") as shown cross-hatched on Exhibit A hereto, upon the terms,
covenants, conditions and provisions set forth below.

            This Lease consists of three parts:

                  1.    Business Terms

                  2.    General Lease Provisions

                  3.    Exhibits and Riders

                  NOW, THEREFORE, in consideration of the rents and agreements
set forth herein, and intending to be legally bound hereby, Landlord and Tenant
agree as follows:

                                 BUSINESS TERMS

The following "Business Terms" shall have the following meanings in this Lease:

"Commencement Date":       The date hereof.

"Expiration Date":         The last day of the third Lease Year after the
                           Commencement Date.

"Fixed Rent":              $480,000 per year, payable in equal monthly
                           installments of $40,000, from the Commencement Date
                           through the end of the Third Lease Year.

"Term":                    The term of this Lease of three (3) years, commencing
                           at 12:00 a.m. on the Commencement Date and expiring
                           at 11:59 p.m. on the Expiration Date (or on such
                           earlier date as this Lease may otherwise terminate in
                           accordance with its terms, covenants, conditions, and
                           provisions).

"Permitted Use":           Executive, general, and administrative offices and
                           related and ancillary uses for Tenant and Dixie
                           National Life Insurance Company.

"Liability Limit":         Three million dollars ($3,000,000).

                                        1
<PAGE>

"Notice Addresses":

                  (a)   for Tenant:

                              Standard Life Insurance Company of Indiana
                              c/o Capital Prospects, LLC
                              100 Mallard Creek Road, Suite 197
                              Louisville, Kentucky  40207
                              Attention:  Mr. Bob Scott

                  (b)   for Landlord:

                              Standard Management Corporation
                              10689 N. Pennsylvania Street
                              Indianapolis, Indiana 46280
                              Attention:  Steve Coons, Esq.

"Rent Payment Address":       Standard Management Corporation
                              10689 N. Pennsylvania Street
                              Indianapolis, Indiana 46280
                              Attention:  Michael B. Berry

                                       2
<PAGE>

                            General Lease Provisions

ARTICLE 1. Certain Other Definitions.

1.1. The following words and phrases shall have the following meanings wherever
used in this Lease:

      "Alteration" means any and every alteration, addition, construction,
improvement, or modification of or to the Premises and/or any and every
installation in the Premises (including all fixtures, panelling, partitions,
railings, wall coverings, and all electrical, mechanical, plumbing, heating,
ventilating and air conditioning installations affixed or attached to the
Premises).

      "Building Systems" means the plumbing, heating, ventilating, air
conditioning, elevator, wiring, and electrical systems, installations, and
facilities of the Building.

      "Business Day" means any day other than Saturday, Sunday or national
holidays.

      "Business Hours" means 8 a.m. to 6 p.m. on Business Days.

      "City" means the municipality in which the Premises are located.

      "Condemnation" (or to "Condemn") means any and every taking (whether
temporary or permanent) for any public or quasi-public purpose, by any
Government Entity by exercise of condemnation or eminent domain (or any transfer
or conveyance by agreement in lieu thereof).

      "Control" (or, in context, "Controlling" or "Controlled by") means the
ownership of more than fifty per cent (50%) of the common stock of a corporation
or of the beneficial ownership of an unincorporated enterprise.

      "Damage" means any and all damage or destruction resulting from fire or
other casualty.

      "Employee" means an officer, director, employee, partner, agent,
contractor, subcontractor, or representative.

      "Encumbrance" means any and every lease, security interest, charge,
covenant, restriction, lien, mortgage, or other encumbrance of any kind
whatsoever.

      "Fees-And-Costs" means documented actual and reasonable fees and expenses
of attorneys, accountants, architects, engineers, expert witnesses, contractors,
consultants and other Persons and costs of transcripts, printing of briefs and
records, copying, and other reimbursable expenses charged by any of the
foregoing.

      "Government Entity" means the United States, the State, the City, and any
and every other agency, department, commission, rule-making body, bureau,
instrumentality and/or political subdivision of government of any kind
whatsoever, now existing or hereafter created, now or hereafter having
jurisdiction over the Premises, the Land, the Building, and/or the use,
occupancy, possession, operation and/or maintenance of the Premises, the Land
and/or the Building.

      "Hazardous Materials" means any materials, substances, fluids, chemicals,
gases, or other compounds the presence, use, storage, emission, drainage,
leakage, effusion, modification, or disposition of which is prohibited by law or
subject by law to specific procedures, controls, or restrictions, or which are
otherwise deemed toxic, poisonous, or unsafe. However, "Hazardous Materials"
shall not include minor quantities of substances which are used legally in the
ordinary course of a business use for office purposes.

      "HVAC" means the heating, ventilating, and air conditioning equipment
servicing the Premises, whether located within the Premises, on the roof of the
Premises, or otherwise outside of the Premises.

      "Indemnitees" means Landlord, Landlord's Affiliates, and each holder of a
Senior Encumbrance.

      "Insurance Requirement" means any rule, regulation, code, or other
requirement issued by any fire insurance rating bureau or any body having
similar functions and/or any insurance company which has issued a policy of
insurance covering the Premises, the Land and/or the Building, as in effect from
the date of this Lease through the Expiration Date.

      "Interest Rate" means a rate per annum equal to the lesser of (a) 4% above
the so-called "prime rate" published in the New York City edition of The Wall
Street Journal from time to time (or, if such rate shall cease to be published,
any similar rate which is publicly announced from time to time by any bank in
New York City having total assets in excess of $500 million designated by
Landlord in writing); or (b) the maximum rate of interest, if any, which Tenant
may legally contract to pay in the State on the applicable obligation.

      "Landlord" means only the owner (or mortgagee in possession) of the
Building for the time being.

      "Landlord's Affiliates" means (i) any corporation Controlling Landlord and
any parent corporation Controlling the same (whether directly or indirectly);
(ii) any corporation Controlled by Landlord and any corporation Controlled by
the same (whether directly or indirectly); (iii) any Person which acquires
substantially all of the assets of Landlord or any corporation into which
Landlord may be merged or with

                                       3
<PAGE>

which Landlord may be consolidated; and (iv) all Employees of Landlord and of
every corporation referred to in (i), (ii) and (iii) above.

      "Law" or "Laws" means each and every law, rule, regulation, order,
ordinance, statute, requirement, code, or executive mandate of any kind
whatsoever, present or future, issued by any Government Entity applicable to or
affecting the Premises, the Land, the Building, and/or the use, occupancy,
possession, operation, and/or maintenance of the Premises, the Land and/or the
Building.

      "Lease Year" means a period of twelve (12) consecutive months during the
Lease Term commencing on the Commencement Date; and "Partial Lease Year" means
that portion of the Lease Term occurring after the Commencement Date and ending
prior to the commencement of the first full Lease Year or occurring after the
end of the last full Lease Year and through the Expiration Date (or any earlier
date on which this Lease may otherwise terminate in accordance with its terms,
covenants, conditions, and provisions).

      "Legal Proceeding" means every action, litigation, summary proceeding,
arbitration, administrative proceeding, and other legal or equitable proceeding
of any kind whatsoever.

      "Lien" means any and every lien of any kind whatsoever for the furnishing
(or alleged furnishing) of (or on account of) labor, materials, services,
facilities, or any other things whatsoever.

      "Non-Structural Alterations" means painting, wallpapering, the
installation of carpeting, bookcases, shelves, partitions, non-load bearing
walls, paneling, furniture or moveable fixtures, or the hanging of pictures or
other decorative items which can be removed without permanent damage to the
applicable surface, or computer/telecommunications wiring or re-wiring within
the Premises which does not affect Building Systems.

      "Overtime Hours" means hours other than Business Hours.

      "Parking Lot" means the parking lot on the Land adjacent to the Building
and owned by Landlord and designated by Landlord for common use by tenants and
occupants of the Building and their invitees.

      "Person" means an individual person, corporation, partnership, trust,
joint venture, proprietorship, estate or other incorporated or unincorporated
enterprise, entity, Government Entity, or organization of any kind whatsoever.

      "Project" means the Building and all Public Areas.

      "Public Areas" means those areas of the Building which are not leased to
tenants and which are available for common use of tenants, occupants, and their
invitees, including (if any), lobby, loading docks and areas, delivery areas,
elevators (including freight elevators), escalators, hallways, pedestrian
sidewalks, landscaped areas, stairways, lights and lighting facilities, sanitary
systems restrooms, Utility installations, the Parking Lot and facilities,
cafe/cafeteria and exterior courtyard adjacent thereto, and other areas and
improvements provided by Landlord for common use or benefit.

      "Rent" or "Rents" means, collectively, Fixed Rent and Additional Rent.

      "Required Insurance" means the insurance coverage required to be provided
by Tenant under Article 10.

      "Restoration" (or "Restore") means and includes any and all repairs,
additions, restorations, rebuilding, construction, alterations, improvements and
replacements of every kind (whether structural or otherwise).

      "Senior Encumbrance" means: (a) any and every mortgage now a lien, or
hereafter becoming a lien, upon the Land or the Building; and (b) any lease
presently or hereafter in effect between Landlord, as lessee or tenant, and any
owner of the Land or the Building, which covers or includes the Premises.

      "State" means the State of Indiana.

      "Utilities" means gas, water (including water for domestic uses and fire
protection), sewer, electricity, light, heat, power, telephone, and
telecommunications, data transmission, water filtration service, other utilities
of every kind.

      Certain other words and phrases are defined elsewhere in this Lease and/or
the Exhibits hereto.

1.2.  Wherever used in this Lease,

      (a) the words "include" or "including" shall be construed as incorporating
"but not limited to" or "without limitation";

      (b) the phrase "at Tenant's expense" means at the sole and exclusive
expense of Tenant, who shall be responsible for all costs involved in, or
associated with, the applicable matter; and

                                       4
<PAGE>

      (c) the phrase "in Landlord's judgment" means in Landlord's sole and
exclusive discretion and judgment.

1.3. Wherever this Lease imposes any obligation upon Tenant, or provides that
Tenant shall be responsible for any action or matter, this Lease shall be
construed to mean that Tenant shall perform or undertake the matter at Tenant's
expense, unless expressly specified otherwise.

ARTICLE 2. Term; Commencement Date; Access.

2.1. Landlord hereby leases to Tenant, and Tenant hereby hires from Landlord,
the Premises for the Term.

2.2. Landlord hereby grants Tenant (and its employees and contractors) a
non-exclusive license for the Term to use the telephone switch room located on
the first floor of the Building (the "Telephone Room") for maintenance of
Tenant's telephone switch(es) and related equipment.

2.3. Tenant shall have access to the Premises and the Telephone Room 24 hours
per day, seven days per week.

2.4. Landlord shall provide Tenant's officers and employees with a key, card
key, access code or other type of access to the Building, the Premises, the
computer room and the Telephone Room and shall maintain such access system in
good repair. Landlord shall program the elevator to restrict access to the
second floor of the Building to officers and employees of Tenant and other
authorized persons designated by Tenant who are holders of card keys which are
programmed to provide access to the Premises. Landlord shall also provide a
receptionist in the lobby of the Building during Business Hours to receive and
direct Tenant's guests and shall use reasonable efforts to restrict access to
the second floor of the Building as directed by Tenant. Landlord shall not grant
access to the Premises to other tenants or occupants of the Building (other than
Building maintenance and management personnel).

ARTICLE 3. Fixed Rent.

3.1. Tenant agrees to pay Fixed Rent to Landlord, without notice or demand, in
equal monthly installments in advance on the first day of each and every
calendar month during the Term. Tenant shall pay the first monthly installment
of Fixed Rent upon execution of this Lease.

3.2. If the Commencement Date falls on any day other than the first day of a
calendar month, the installment of Fixed Rent for such calendar month shall be
prorated on a per diem basis (and Tenant shall pay such pro-rated installment on
the Commencement Date).

3.3. Tenant agrees to pay as additional rent ("Additional Rent") all sums of
money, costs, expenses, charges, interest, or fees of every kind or amount
whatsoever, other than Fixed Rent, which Tenant has assumed or agreed to pay to
Landlord, or which otherwise may become due and payable by Tenant, under this
Lease. Additional Rent shall not include, and Tenant shall not be responsible
for, any payments on account of real estate taxes or operating expenses for the
Building. Unless otherwise specified, Tenant shall pay all Additional Rent
within ten (10) days after Landlord's demand. Landlord shall have the same
rights (and remedies) under this Lease for Tenant's failure to pay any
Additional Rent as for Tenant's failure to pay Fixed Rent.

3.4. Tenant shall pay Fixed Rent and all Additional Rent in lawful money of the
United States by unendorsed check payable to Landlord drawn on a bank located
within the continental United States.

3.5. Tenant shall pay Fixed Rent and all Additional Rent to Landlord at the Rent
Payment Address or at such other place as Landlord may designate by notice to
Tenant from time to time.

3.6. Tenant shall pay all Fixed Rent and Additional Rent promptly when due and
payable, without notice or demand, and without offset, deduction, credit,
abatement, or counterclaim of any kind or for any reason whatsoever unless,
however, specifically permitted elsewhere in this Lease.

3.7. If Tenant fails to pay any installment of Fixed Rent or any amount of
Additional Rent for more than ten (10) days after the same is due, Tenant shall
pay, with the delinquent sum, (a) a late charge equal to 5% of such delinquent
installment and (b) interest thereon at the Interest Rate from the date when due
through the date of payment.

3.8. If Tenant fails to make any payment required by this Lease (other than
Fixed Rent), or if Tenant fails to keep or perform any other term, covenant,
condition or provision of this Lease, or if this Lease provides in any case that
Landlord may take certain actions at Tenant's expense, Landlord may (at
Landlord's election) make any such payment and/or take such action as Landlord
deems necessary or desirable (in Landlord's judgment) to perform and fulfill
such term, covenant, condition or provision. In any such event, Tenant agrees to
reimburse Landlord, upon demand, for any such payment, and/or for all amounts so
paid or incurred by Landlord (including all Fees-And-Costs), together with
interest on each such amount at the Interest Rate from the date of Landlord's
demand.

3.9. If any Fixed Rent or any Additional Rent shall be or become uncollectible
by virtue of any Laws, Tenant shall enter into such agreement or agreements and
take such other action as Landlord may request to permit Landlord to collect

                                       5
<PAGE>

the maximum Fixed Rent and Additional Rent which may, from time to time during
the continuance of such restriction, be legally permissible (but not in excess
of the amounts due under this Lease). Upon the termination of such restriction,
(a) Fixed Rent and Additional Rent shall become payable in accordance with the
terms of this Lease and (b) Tenant shall pay Landlord, if legally permissible,
an amount equal to the Fixed Rent and Additional Rent which would have been
payable hereunder but for the restriction, less the amounts paid by Tenant to
Landlord during the period that such rent restriction was in effect.

ARTICLE 4. HVAC; Building Systems.

4.1. Landlord shall provide, maintain and repair the Building Systems.

4.2. Landlord shall furnish HVAC to the Premises during Business Hours via the
Building Systems. At Tenant's request, Landlord shall furnish HVAC to the
Premises during Overtime Hours, at no additional cost to Tenant, provided Tenant
requests such service before 3:00 p.m. on the day for which service is requested
(or by 3:00 p.m. on the preceding Business Day if service is requested for a day
other than a Business Day).

4.3. Landlord shall provide passenger elevator service to the Premises on
Business Days during Business Hours. Landlord shall have one passenger elevator
subject to call at other times. Elevator service shall be on a non-exclusive
basis and shall be subject to temporary cessation for ordinary repair and
maintenance and during times when life safety systems override normal building
operating systems.

4.4. There shall be one freight elevator on call on a "first come", "first
served" basis during Business Hours and Overtime Hours, at no additional cost to
Tenant, subject to temporary cessation for ordinary repair and maintenance and
during times when life safety systems override normal building operating systems
and further subject to the Building Rules and Regulations.

4.5. Landlord shall furnish water to the Premises for ordinary lavatory,
drinking, pantry and space cleaning purposes. If Tenant uses water for other
purposes or excessive quantities ("Extra Water"), Tenant shall pay Landlord's
actual cost for Extra Water.

4.6. Tenant shall not discharge (or allow discharge of) foreign or Hazardous
Materials into the water or sewer systems of the Building or in violation of
Laws.

4.7. Landlord shall cause janitorial services to be provided to the Premises, at
no additional cost to Tenant, in a manner that Landlord reasonably deems to be
consistent with the standards of comparable office buildings in the market area
of the Building.

4.8. Tenant shall notify Landlord in writing, promptly after learning of the
same, of defects or problems in the Building Systems or in services to be
furnished by Landlord under this Lease.

4.9. Landlord shall make available to Tenant space in the Building directory in
the lobby on terms reasonably acceptable to Landlord.

4.10. Landlord represents and warrants that the electrical power currently
supplied to the Premises via the Building Systems is adequate to continue the
current level of operations and use of the Premises. To the extent the services
described in this Article 4 require electricity and water supplied by public
utilities, Landlord's covenants thereunder shall only impose on Landlord the
obligation to use its reasonable efforts to cause the applicable public
utilities to furnish same, provided however, that Landlord shall permit Tenant
to use all of the then existing Building Systems, feeders, risers, wiring, and
pipes to receive such services. Except for the willful misconduct or negligence
of Landlord and as set forth in Section 4.11 below, failure by Landlord to
furnish the services described herein, or any cessation thereof, shall not
render Landlord liable for damages to either person or property, nor be
construed as an eviction of Tenant, nor work an abatement of rent, nor relieve
Tenant from fulfillment of any covenant or agreement hereof. In addition to the
foregoing, should any of the equipment or machinery, for any cause, fail to
operate, or function properly, Tenant shall have no claim for rebate of rent or
damages on account of an interruption in service occasioned thereby or resulting
therefrom; provided, however, Landlord agrees to use reasonable efforts to
promptly repair said equipment or machinery and to restore said services during
normal business hours.

4.11. Notwithstanding anything to the contrary in this Lease, however, if the
Premises, or any portion thereof, shall be rendered untenantable due to
Landlord's failure to perform its obligations under this Lease and/or provide
the services required hereunder for any reason within Landlord's reasonable
control for a period of five consecutive Business Days or more, then the Fixed
Rent and Additional Rent payable hereunder shall be abated until the date upon
which the condition causing the untenantability is cured and the Premises is
restored to substantially the same condition as it existed, or if applicable,
the date of restoration of substantially the same level of service, prior to the
occurrence of the condition which rendered the Premises (or portion)
untenantable; and provided, further, that if, for any reason whatsoever
(including Landlord's actions or failure to perform and/or force majeure) (i) a
substantial portion of the Premises shall be rendered untenantable and Tenant is
entitled to an abatement pursuant to the above and the same continues for

                                       6
<PAGE>

forty-five (45) days after Landlord received notice of such untenantable
condition (except due to Damage, in which event the provisions of Article 14
shall govern), then Tenant shall be entitled to terminate this Lease, by giving
Landlord written notice of its election to terminate within ten (10) days after
the expiration of said forty-five (45) day period (time being of the essence).

ARTICLE 5. Use.

5.1. The Premises shall be occupied and used by Tenant solely and exclusively
for the Permitted Use, and Tenant shall not use or permit or suffer the use of
the Premises for any other purpose whatsoever.

5.2. Tenant agrees that Tenant:

      (a) will not permit the use of any part of the Premises for any unlawful
purpose;

      (b) will not permit the Premises to be used for disreputable or
pornographic purposes or for activities which would be deemed obscene under
applicable Laws; or

      (c) will not cause or allow any waste, disfigurement or damage, to the
Premises.

ARTICLE 6. Compliance with Laws and Insurance Requirements.

6.1. At Tenant's expense, Tenant shall comply with all Laws and Insurance
Requirements, applicable during the Term, except however to the extent such Laws
and Insurance Requirements relate to Landlord's obligations under this Lease and
such compliance requires repairs or Alterations to the Premises.

6.2. To the extent permitted by Law, Tenant may in good faith contest, at
Tenant's expense and by appropriate proceedings, the validity or effect of any
Law.

6.3. Notwithstanding Section 6.2, Tenant shall not use or occupy the Premises in
violation of the certificate of occupancy issued for the Premises. If any
Government Entity shall give notice that the Premises are being used in
violation of such certificate of occupancy, Tenant shall, upon five (5) days
written notice from Landlord, discontinue such use of the Premises.

ARTICLE 7. Alterations and Installations.

7.1. Tenant shall not undertake any Alteration, whether voluntarily or in
connection with a Restoration required by this Lease, unless Tenant complies
with this Article.

7.2. Tenant shall not commence any structural Alteration without Landlord's
prior written consent. Notwithstanding the foregoing, however, Landlord's
consent shall not be required for any Non-Structural Alteration provided that
the cost of performing such non-structural alteration shall not exceed
$25,000.00 and shall not cause the aggregate of all such alterations in any
12-month period to exceed $50,000.00.

7.3. Landlord will not unreasonably withhold or delay consent to an Alteration
(when such consent is required) except, however, with regard to any Alteration
which will:

      (a) alter or affect the proper functioning of the Building Systems or the
structure, facade, roof, or foundation of the Building;

      (b) detract from the use or character of the Premises;

      (c) require amendment of any certificate of occupancy for the Premises; or

      (d) require the consent of any insurer under any Required Insurance or any
other policy of insurance covering the Premises or the holder of a Senior
Encumbrance.

7.4. With respect to every Alteration (except with regard to Non-Structural
Alterations), Tenant shall cause all necessary designs, plans and specifications
for a proposed Alteration to be prepared at Tenant's expense by an architect (or
engineer, if appropriate) licensed by the State and shall submit the same to
Landlord for Landlord's review. With respect to every Alteration (except with
regard to Non-Structural Alterations not requiring Landlord's consent), such
designs, plans and specifications shall be subject to Landlord's written
approval which Landlord will not unreasonably withhold or delay. Landlord's
approval (if given) shall not imply that the Alteration is properly designed or
complies with Laws.

7.5. With respect to every Alteration:

      (a) Tenant shall procure or cause to be procured all permits, approvals,
consents, licenses and filings of any kind required by Laws;

      (b) Tenant shall obtain (and pay any additional costs for) the consent of
any insurer to such Alteration if such consent is required to keep any Insurance
Policy in full force and effect;

      (c) Tenant shall undertake, prosecute, and complete all work in connection
with the Alteration continuously and expeditiously and in a good and workerlike
manner;

                                       7
<PAGE>

      (d) Any contractor employed by Tenant (and all subcontractors) shall be
subject to Landlord's prior written approval, which shall not be unreasonably
withheld, delayed or conditioned, and shall agree to employ only such labor as
will not result in jurisdictional disputes or strikes or cause disharmony with
other workers employed at the Building.

      (e) Tenant shall pay each contractor, as the work progresses, the entire
cost of supplying the materials and performing the work shown on Tenant's
approved plans and specifications for an Alteration, subject to a reasonable
retainage (and to resolution of disputes provided that no liens are filed
against the Premises).

      (f) Tenant shall cause the Alteration to be installed or constructed in
compliance with Laws.

      (g) Tenant agrees that each Alteration will:

            (i) be of good quality and free from faults and defects, latent or
      otherwise;

            (ii) be free of Liens;

            (iii) conform to the plans and specifications approved by Landlord;
      and

            (iv) be fit for the intended use and purpose.

      (h) Tenant and Tenant's contractors shall allow access for inspection by
Landlord's representatives at all reasonable times.

      (i) Tenant shall obtain all necessary asbestos certifications (if any) and
comply with all Laws regarding the removal, handling, or treatment of Hazardous
Materials in connection with any Alteration.

      (j) With respect to any Alteration, Tenant shall pay Landlord, upon
demand, Fees-And-Costs incurred by Landlord for review by architects and/or
engineers of Tenant's Alteration plans.

7.6. Landlord shall not be responsible for any labor or materials furnished to
Tenant or for delays of any kind experienced by Tenant's contractors or
subcontractors. No Lien for any labor, materials, or other services or things
furnished to Tenant shall attach to or affect Landlord's estate or interest in
the Premises. Tenant agrees to discharge, at Tenant's expense (whether by
payment, bonding, or otherwise) every Lien filed against the Premises for work
or materials claimed to have been furnished to Tenant, within thirty (30) days
after receiving notice thereof. Tenant shall require that all contractors and
subcontractors engaged in connection with Tenant's Alterations indemnify the
Indemnitees against any and all loss, cost, liability, claim, damage, or expense
(including Fees-and-Costs) paid or incurred by any Indemnitee, or asserted
against any Indemnitee, for bodily injury, disease, or death to persons, or
damage to property, by reason of the acts or omissions of Tenant or Tenant's
contractors or subcontractors or by reason of their failure to comply with Laws.

ARTICLE 8. Fixtures and Equipment; Tenant's Property.

8.1. Any Alterations made and installed by Landlord (or at Landlord's expense)
shall be Landlord's property and shall remain upon the Premises (and be
surrendered by Tenant) at the end of the Term.

8.2. All Alterations made and installed by Tenant (or at Tenant's expense) in or
upon the Premises which are of a permanent nature and cannot be removed without
damage to the Premises shall become Landlord's property and shall remain upon
(and be surrendered by Tenant) at the end of the Term. However, except to the
extent as Landlord may have otherwise agreed in writing, Landlord shall have the
right, by written notice given to Tenant to require Tenant to remove any of such
Alterations and, in such event, Tenant will remove the same and restore the
Premises to its original condition prior to the Expiration Date, excepting only
ordinary wear and tear. In addition, at Landlord's option, Tenant shall also be
responsible for removing all wires and cables installed by Tenant in the
Premises and other portions of the Building to serve Tenant's telecommunications
and computer systems in the Premises and the removal of such wires and cables
shall be effected by Tenant without damage to the Building and without
interference with the business or operations of Landlord or any other tenant of
the Building.

8.3. Tenant shall have the right during the Term to use any and all furniture,
furnishings, trade fixtures and equipment in the Premises as of the Commencement
Date. All furniture, furnishings, trade fixtures and equipment otherwise
furnished by Tenant or at Tenant's expense shall be the property of Tenant which
Tenant shall remove prior to the Expiration Date.

8.4. If any Alterations or other property which Tenant may or must remove under
Sections 8.2 or 8.3 are not removed prior to the expiration or termination of
this Lease for any cause whatsoever or upon the Tenant being dispossessed by
process of law or otherwise, such alterations, effects, personalty and equipment
shall, at Landlord's option, be deemed conclusively to be abandoned and may be
appropriated, sold, stored, destroyed or otherwise disposed of by Landlord
without written notice to Tenant or any other party and without obligation to
account for them. Tenant shall pay Landlord on demand any and all expenses
incurred by Landlord in the removal of such property, including, without

                                       8
<PAGE>

limitation, the cost of repairing any damage to the Building caused by the
removal of such property and storage charges (if Landlord elects to store such
property).

8.5. Tenant shall repair all damage to the Premises resulting from the
installation, moving, or removal of any property (or shall reimburse Landlord,
upon demand, for Landlord's cost of repairing any such damage if Tenant fails to
do so). This Section shall survive any termination of this Lease.

ARTICLE 9. Maintenance; Repairs.

9.1. Except for obligations of Landlord specifically set forth in this Lease,
Tenant shall maintain the Premises in a good, clean, safe, sanitary, and orderly
condition.

9.2. Landlord shall maintain: (a) the lobby and other Public Areas of the
Building and the exterior of the Building in good, clean and orderly condition
(reasonable wear, tear and obsolescence excepted); and (b) the Building Systems
in good working order and repair.

9.3. Any work or repairs by Tenant required or permitted with respect to the
Premises under this Lease shall be of good quality. If Tenant fails to make any
such required repairs within a reasonable time after written notice from
Landlord (not to exceed thirty (30) days), or to promptly commence and
diligently prosecute such repairs within a reasonable time if the same cannot be
completed within thirty (30) days, Landlord may (but shall not be obligated to)
effect the repairs at Tenant's expense and collect the cost thereof, upon
demand, as Additional Rent, with interest at the Interest Rate from the date of
Landlord's payment.

9.4. Tenant shall Restore promptly all Damage or injury to the Premises caused
by the acts or omissions of Tenant or Tenant's Employees or invitees.

9.5. Tenant shall not place a load upon any floor of the Premises exceeding the
floor load which such floor was designed to carry and which is allowed by Laws.
Business machines and mechanical equipment used by Tenant which cause vibration,
noise, cold or heat shall be placed and maintained by Tenant in settings of
cork, rubber or spring-type vibration eliminators sufficient to absorb and
prevent such vibration or noise, or prevent transmission of such cold or heat.

ARTICLE 10. Required Insurance.

10.1. At Tenant's expense, Tenant shall secure and keep in force the following
"Required Insurance" at all times during the Term:

      (a) commercial liability insurance (including contractual liability
coverage recognizing this Lease) covering the Premises and Tenant's occupancy
thereof, with coverage limits not less than the Liability Limit; and

      (b) "all-risk" insurance protecting against all risk of physical loss or
damage to Tenant's personal property, in amounts not less than the actual
replacement cost of Tenant's trade fixtures, furnishings, wall coverings, floor
coverings, drapes, computers and other equipment and other personal property
located within the Premises.

10.2. Landlord, at its expense, shall secure and keep in force at all times
during the Term, "all-risk" casualty insurance, on an extended coverage basis,
protecting against all risk of physical loss or Damage to the Premises and the
Building from fire, windstorm, and other casualties customarily covered by risk
insurance, in an amount at least equal to the full replacement value of the
Building.

10.3. All Required Insurance shall be evidenced by valid and enforceable
policies issued by companies licensed to do business in the State. (Each policy
providing Required Insurance is referred to in this Lease as an "Insurance
Policy".) All Insurance Policies shall name Landlord the holder of every Senior
Encumbrance and such other parties reasonably designated by Landlord as an
additional insured. Tenant shall furnish Landlord, within thirty (30) days after
the date of this Lease and thereafter at Landlord's request from time to time,
with original insurance certificates or copies of original policies evidencing
such coverage. The minimum limits of the comprehensive general liability policy
of insurance shall in no way limit or diminish Tenant's liability under Article
23 of this Lease. All Required Insurance shall be written on the "occurrence",
and not on the "claims made", basis.

10.4. Each Insurance Policy shall provide that the insurer shall not cancel or
amend such Insurance Policy, or reduce any coverage, without thirty (30) days'
prior written notice to Landlord (whether or not such provision is obtainable
only by payment of an additional premium).

10.5. All policies of insurance carried by Landlord and Tenant shall include, if
available without additional premium, a waiver by the insurer of all rights of
subrogation against Landlord or Tenant in connection with any loss or damage
thereby insured against. Neither party (nor its agents, Employees or guests)
shall be liable to the other for loss or damage caused by any risk covered by
such insurance, to the extent that policies are obtainable with such waiver of
subrogation. If insurance policies with such waivers are available only at extra
premium, the insured party will give written notice to the other, who may pay
the extra premium for such waiver within thirty (30) days after the giving of
such notice; and the insured party will then secure the waiver of

                                       9
<PAGE>

subrogation. If the release of either Landlord or Tenant in this Section
contravenes any law respecting exculpatory agreements, the party purportedly
released hereunder shall not be released; but such party's liability shall be
secondary to that of the other party's insurer.

10.6. Prior to the Commencement Date, Tenant shall deliver to Landlord
certificates or, at Landlord's request, copies of the original policies,
evidencing that all Required Insurance shall be in full force and effect as of
the Commencement Date. Tenant shall cause each of its contractors to comply with
this Section 10.6 prior to entry upon the Premises for the purpose of performing
any work.

10.7. Thirty (30) days prior to the expiration of any Insurance Policy, Tenant
shall deliver to Landlord certificates or, at Landlord's request, original
policies evidencing renewal or replacement of such Insurance Policy. If Tenant
fails to deliver such certificates or pay the premiums, Landlord may procure and
pay for the renewal or replacement policies after ten (10) days' notice to
Tenant. Any such payments by Landlord shall constitute Additional Rent due and
payable by Tenant upon demand, with interest at the Interest Rate from the date
of Landlord's payment.

10.8. Tenant and Landlord shall cooperate with each other and with the holders
of any Senior Encumbrances in connection with collection of any insurance
monies.

10.9. Tenant shall not do or permit to be done any act or thing upon the
Premises which will invalidate or contravene any Insurance Policy or be in
conflict with any Insurance Requirements, or prevent Landlord from obtaining
insurance, or increase the rate of fire insurance applicable to the Building;
and Tenant shall neither do nor permit to be done any act or thing upon the
Premises which will or might subject Landlord to any liability or responsibility
for injury to any Person or to property.

10.10. Tenant shall reimburse Landlord, as Additional Rent upon demand, for all
increases of Landlord's insurance premiums resulting from violations of Tenant's
obligations under Section 10.9. In any Legal Proceeding involving the cost of
insurance, a schedule or "make-up" of rates issued by the body making insurance
rates for the Premises shall be presumptive evidence of the items and charges
taken into consideration in fixing the insurance rates then applicable to the
Premises.

10.11. Except to the extent resulting or arising from Landlord's negligence,
Landlord and Landlord's Affiliates shall not be liable for, and Tenant waives
all claim for, any injury or damage to Persons or property resulting from any
equipment or appurtenances in disrepair, Landlord's failure to keep the Building
and Premises in repair, fire, explosion, falling plaster, broken glass, steam,
gas, electricity, water, wind, rain, snow or other natural elements, or leaks
from any part of the Building, or from the pipes, appliances, tanks, plumbing,
roof, street, or subsurface, or the backing up of any sewer pipe or drain
downspout, or from any other place, or by dampness or steam, or from theft or
other criminal activity, or from the acts or omissions of other tenants or
occupants or owners of nearby properties, or any other cause of whatsoever
nature (excluding however, any of the foregoing resulting directly from elective
work in the Premises performed by Landlord or Landlord's contractors).

ARTICLE 11. Damage; Restoration.

11.1. Tenant shall notify Landlord in writing of any Damage to the Premises or
the Building promptly after Tenant learns of the same.

11.2. In event of Damage to the Building or the Premises, Landlord shall Restore
the Damaged area and repair or replace Landlord's personal property in the
Premises as nearly as possible to the value, condition and character of the same
immediately before the Damage, subject, however, to Sections 9.4 and 11.3.

11.3. If the Building is so Damaged (whether or not the Premises are Damaged) as
to require, for Restoration, a reasonably estimated expenditure of more than 30%
of the value of the Building as actually insured under Landlord's insurance
policies immediately prior to such Damage, and Landlord elects not to Restore
the Building, Landlord may terminate this Lease by notice to Tenant within 120
days after the date of such Damage.

11.4. In event of Damage to the Building or the Premises, if Landlord is
obligated to repair the same under Section 11.2 but has not completed the
required repairs within 270 days after the date of such Damage and if the Damage
has deprived (and then continues to deprive) Tenant of reasonable access to the
Premises or the use and enjoyment of more than 10% of the Premises, Tenant may
terminate this Lease by written notice to Landlord given within 30 days after
the end of such 270 days.

11.5. If Landlord or Tenant terminates this Lease pursuant to Section 11.3 or
11.4, this Lease shall expire as of the date of Landlord's or Tenant's notice,
as if such date were the Expiration Date. Upon such date, Tenant shall quit,
surrender and vacate the Premises as if upon expiration of the Term; and all
Rents shall be apportioned as of such date (subject to Section 11.6).

11.6. If the Premises become unusable by Tenant for more than five consecutive
Business Days from Damage to the Premises or the Building (except any Damage
caused by the acts or omissions of Tenant or its Employees or invitees), Tenant
shall receive an abatement of Fixed Rent and

                                       10
<PAGE>

Additional Rent from the date of the Damage to the date when such Damage is
Restored. Such abatement shall be proportional to the ratio which the square
footage of the Damaged area of Premises bears to the total square footage of the
Premises.

11.7. This Article shall be considered an express agreement governing Damage to
the Premises and/or the Building; and (to the extent permitted by law) any
statute purporting to govern in such cases, now or subsequently in force, shall
have no application under this Lease.

ARTICLE 12. Condemnation.

12.1. If the entire Premises is Condemned or taken in Condemnation, this Lease
shall terminate and expire as of the effective date of such Condemnation.

12.2. If more than 15% of the usable area of the Land on which the Building has
been constructed (excluding adjacent Land not necessary to the operation or
maintenance of the Building), the Parking Lot, and/or the Building shall be
Condemned (whether or not the Premises are Condemned), Landlord may terminate
this Lease by notice to Tenant within 90 days after the effective date of such
Condemnation; and this Lease shall terminate on the date specified in Landlord's
notice (which shall be at least 60 days after the date of such notice).

12.3. Subject to Section 12.2, if part (but not all) of the Premises is
Condemned, this Lease shall terminate with respect only to the portion of the
Premises so Condemned, as of the effective date of such Condemnation. In all
other respects this Lease shall remain in effect except that Rents shall be
reduced, after such date, in the proportion which the square footage of the area
so Condemned bears to the Premises.

12.4. Notwithstanding Section 12.3, if more than 10% of the Premises is
Condemned, or if there is a Condemnation of a substantial part of the means of
access to the Premises, Tenant may terminate this Lease by notice to Landlord
given within 90 days after the effective date of such Condemnation; and this
Lease shall terminate 30 days after the giving of Tenant's notice.

12.5. In event of any Condemnation of the Land, the Building or the Premises,
whether or not this Lease terminates, Landlord shall be entitled to the entire
award and compensation, without deduction for any estate vested in Tenant by
this Lease (or any value attributable thereto). Tenant hereby assigns to
Landlord Tenant's entire interest (if any) in or to any such award and
compensation (other than Tenant's claim for statutory moving expenses, if any);
and Tenant agrees to execute and file, at Landlord's expense, all documents and
instruments necessary or desirable to facilitate Landlord's collection of such
award and compensation.

12.6. If this Lease terminates in whole or in part under this Article, the
effect shall be the same (as to the affected portion of the Premises) as if the
date of such Condemnation were the Expiration Date; and Rents shall be
apportioned as of such date.

ARTICLE 13. Public Areas; Conference Rooms; Parking Lot.

13.1. The Public Areas shall be subject to Landlord's management. Landlord may
establish, amend, and enforce reasonable rules concerning the Public Areas and
the Premises (the "Building Rules") from time to time. The current Building
Rules are attached hereto as Exhibit C. Any modifications, amendments or
additions to the Building Rules shall be subject to Tenant's reasonable
approval.

13.2. Tenant and its Employees and invitees shall have the non-exclusive right,
in common with Landlord (and others to whom Landlord has granted or may in the
future grant rights), to use the Public Areas subject to the Building Rules and
Landlord's rights as set forth above. Landlord may close any Public Areas
temporarily at any time to make repairs or changes, to prevent the acquisition
of public rights, and for other reasonable purposes.

13.3. Tenant shall have the right to use the conference rooms located on the
first floor of the Building (the "Conference Rooms") subject to availability
during Business Hours and Overtime Hours for a reasonable fee to be agreed to
between Landlord and Tenant. Landlord and Tenant agree that the initial fee for
using each room shall be $100.00 per room per day or any portion of such day.
Tenant shall have the right to use the cafe/cafeteria in the Building for
Tenant's exclusive use for special events subject to availability during
Overtime Hours for a reasonable fee to be agreed to between Landlord and Tenant.
Landlord and Tenant agree that the Initial Fee for such use of the
cafe/cafeteria shall be $200.00 per day or any portion of such day. Tenant shall
cause such areas to be cleaned and restocked, as necessary, promptly after the
completion of Tenant's use thereof at Tenant's sole cost expense. In the event
that Tenant fails to comply with the terms of this Section 13.3 and such other
reasonable rules and regulations of Landlord relating to the use of such areas,
Landlord shall be permitted to terminate Tenant's use rights of such areas under
this Section 13.3 only.

13.4. Tenant and its employees, guests, and invitees shall have the nonexclusive
right to use up to 120 parking spaces in the Parking Lot. Notwithstanding
anything to the contrary in this Lease, Landlord agrees that during the Term,
the Parking Lot shall be operated on a "first come", "first served" basis and
that Landlord shall not create "reserved" parking spots in

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<PAGE>

the Parking Lot in addition to those spots currently designated as "reserved".

13.5. Tenant agrees and acknowledges that Landlord shall not have any obligation
to continue operation of the cafe/cafeteria or to otherwise provide any food
service facilities or services at the Building and that Tenant shall have no
claim whatsoever against Landlord or any other policy in the event of the
cessation of such operation.

ARTICLE 14. Signs.

14.1. Tenant shall have the right to install and maintain at Tenant's expense a
panel on the pylon sign on the Land identifying the occupant(s) of the Premises.
Landlord shall have the right to approve the location, materials, dimensions,
and design of such signage which approval shall not to be unreasonably withheld
or delayed.

ARTICLE 15. Landlord's Access to Premises; Related Matters.

15.1. Tenant shall permit Landlord to erect, use and maintain pipes, ducts and
conduits in and through the Premises, provided the same are installed adjacent
to or concealed behind walls and ceilings of the Premises. To the extent
reasonably practicable, Landlord shall install such pipes, ducts and conduits by
methods and in locations which will not materially interfere with or impair
Tenant's layout or use of the Premises.

15.2. Landlord shall be allowed to bring into and store upon the Premises all
necessary materials, equipment, tools, facilities, and supplies to be used for
any work permitted or required under this Lease without the same constituting an
actual or constructive eviction of Tenant; and Rents shall not abate while said
repairs or alterations are being made except as otherwise provided in this
Lease. Landlord shall exercise reasonable diligence to minimize disturbance to
Tenant during any such work but need not perform any work on an overtime or
premium pay basis.

15.3. Landlord reserves the right, without the same constituting an actual or
constructive eviction and without incurring liability to Tenant, to change the
arrangement and/or location of public entrances, passageways, doors, doorways,
corridors, elevators, if any, stairways, toilets and/or other public parts of
the Building, if any; provided, however, that there shall be no obstruction of
access to the Premises or interference with Tenant's use or enjoyment of the
Premises.

15.4. Tenant authorizes Landlord and Landlord's Employees to enter the Premises
during Business Hours on at least 24 hours prior notice (provided that such
prior notice shall not be required in emergency situations) (a) to inspect the
Premises; and/or (b) to perform any maintenance or to make any repairs,
alterations, or improvements which Landlord deems necessary to the Premises or
which are otherwise permitted under this Lease (including any work required
under Article 9 which Tenant has failed to perform or make). Landlord shall not
enter the Premises unless accompanied by a representative of Tenant except in
case of emergency.

15.5. Landlord shall repair any damage to property caused by willful acts or
gross negligence of Landlord or Landlord's Employees.

15.6. Tenant agrees to permit Landlord and/or any Employee of Landlord to enter
the Premises during Business Hours, on at least 24 hours prior notice and so
long as accompanied by a representative of Tenant, to exhibit the Premises in
connection with:

      (a) any prospective sale or lease of the Land and/or the Building; or

      (b) any prospective securing, refinancing, or assignment of any mortgage
affecting the Land or the Building; and/or

      (c) during the final twelve (12) months of the Term, any prospective
leasing of the Premises.

15.7. If, during the last month of the Term, Tenant has removed all of Tenant's
Property, Landlord may (at Landlord's option but without any liability to do so)
immediately enter and alter, renovate and redecorate the Premises, without
abatement or adjustment of any Rents or incurring liability to Tenant for any
compensation; and such acts shall have no effect upon this Lease.

ARTICLE 16. Subordination: Estoppel Certificate; Attornment.

16.1. This Lease (as amended, modified, extended, or otherwise revised from time
to time), and the leasehold estate created hereby, are now and shall hereafter
be subject and subordinate in every respect to all Senior Encumbrances. This
subordination shall be self-operative without requirement of any further
instrument of subordination from any Person to whom (or to whose interest) this
Lease, and leasehold estate created hereby, are subordinate. However, if and
whenever requested by Landlord or the holder of any Senior Encumbrance, Tenant
shall execute and deliver within ten (10) days of such request any certificate
or instrument requested to evidence such subordination.

16.2. Upon request of any present or future or prospective fee owner or the
holder of any Senior Encumbrance who succeeds to the rights of Landlord
hereunder, whether through

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<PAGE>

conveyance pursuant to sale, possession, foreclosure action, expiration or
earlier termination of any ground lease, or otherwise (any such Person, a "New
Landlord"), Tenant shall attorn to and recognize each New Landlord as "Landlord"
under this Lease (as the same may then have been amended or modified); and
Tenant shall promptly execute and deliver any instrument which each New Landlord
may reasonably request to evidence such attornment. Upon such attornment, this
Lease (as then amended, modified, extended, or otherwise revised) shall continue
in full force and effect as, or as if it were, a direct lease between New
Landlord and Tenant; except, however, that any New Landlord shall not:

      (a) be liable for any previous act or omission of Landlord under the
Lease, or any claim which shall have previously accrued to Tenant against any
prior Landlord, except, however, to the extent that such act or omission or
claim is continuing; or

      (b) be bound by any prepayment to any prior Landlord of more than one
month's Fixed Rent or Additional Rent, unless the New Landlord shall have
approved the prepayment in writing; or

      (c) be subject to any offsets, claims, defenses, or counterclaims which
Tenant might have against any prior Landlord.

16.3. At either party's request from time to time, Landlord or Tenant, as
applicable, shall, within ten (10) days of such request, execute, acknowledge
and deliver to the other party a written statement (each such statement, an
"Estoppel Certificate") certifying that, except as specifically disclosed in
such Estoppel Certificate, on the date thereof:

      (a) attached to the Estoppel Certificate is a true, correct and complete
copy of this Lease, including any and all amendments and modifications thereof;

      (b) there are no agreements other than this Lease (and, except as attached
hereto, no amendments, modifications, extensions, or other revisions of this
Lease) in effect between Tenant and Landlord (or Tenant and any other Person)
with respect to the Premises;

      (c) this Lease is valid and in full force and effect and to such party's
knowledge, such party has no setoffs, claims or defenses of any kind whatsoever
to enforcement of this Lease;

      (d) to such party's knowledge, such party has no claim, demand, cause of
action or right to institute any Legal Proceeding against the other party
arising out of or by virtue of this Lease or by reason of Tenant's occupancy and
use of the Premises.

In each Estoppel Certificate, such party shall certify, also, the amount of
Fixed Rent then payable under this Lease, the amounts (and elements) of
Additional Rent (if any) then payable and the dates to which the same has been
paid, and such other matters as Landlord or Tenant or the holder of any Senior
Encumbrance may reasonably request. Tenant agrees that a prospective purchaser
or mortgagee of Landlord's interest in this Lease, the Premises, the Building,
and/or the Land, or the holder of any Senior Encumbrance (or the assignee of any
such Person), may rely upon such an Estoppel Certificate.

16.4. If the holder of any Senior Encumbrance requests reasonable modifications
in this Lease as a condition to approval of any financing or refinancing of the
Land or the Building, Tenant will not unreasonably withhold or delay making any
requested modifications which do not increase Fixed Rent or Additional Rent,
impose additional liabilities on Tenant, or shorten or extend the Term or
otherwise reduce Tenant's rights or increase Tenant's obligations under this
Lease.

16.5. Except for the first month's Fixed Rent, Tenant will pay no Rents under
this Lease more than thirty (30) days in advance of the due date.

16.6. Tenant will not exercise any right (or alleged right) to terminate this
Lease based upon any alleged act or omission of Landlord, unless Tenant first
gives written notice of such act or omission to the holder of each Senior
Encumbrance (provided Tenant has received written notice of and contact
information for such holder) and until a reasonable period to remedy such act or
omission elapses after the giving of such notice (during which time such holder
shall have the right, but no obligation, to remedy the alleged act or omission).
Tenant agrees, further, not to exercise any such right if the holder of any such
Senior Encumbrance commences to cure such act or omission within a reasonable
time after such notice and diligently prosecutes such cure to completion.

ARTICLE 17. Surrender of Premises.

17.1. Upon the expiration of the Term or any earlier termination of this Lease,
Tenant shal   l quit and surrender to Landlord the Premises, broom clean, in the
condition required under this Lease, excepting ordinary wear and tear and Damage
(other than Damage caused by the willful misconduct or negligence of Tenant or
its Employees). This Section shall survive the expiration of the Term or any
earlier termination of this Lease.

17.2. If Tenant holds over after the Expiration Date (or any earlier termination
of this Lease) without Landlord's written consent, at Landlord's election, such
holding over shall be deemed a month-to-month tenancy subject to all of the
terms, covenants and conditions herein specified and terminable on

                                       13

<PAGE>

thirty (30) days' prior written notice, provided, however, that Fixed Rent shall
be $50,000 per month (i.e., 125% of the amount set forth in the Business Terms
section of this Lease).

ARTICLE 18. Assignment, Mortgaging, Subletting, etc.

18.1. Except as otherwise expressly provided in this Article, Tenant shall not,
without obtaining the prior written consent of Landlord (which consent shall not
be unreasonably withheld or delayed) in each instance:

      (a) assign or otherwise transfer this Lease, or any part of Tenant's
right, title or interest therein;

      (b) sublet all or any part of the Premises or allow all or any part of the
Premises to be used or occupied by any other Persons; or

      (c) mortgage, pledge or otherwise encumber this Lease, or the Premises.

For purposes of this Article:

      (w)the transfer of more than fifty percent (50%) of any class of capital
stock of any corporate tenant or subtenant, or the transfer of more than fifty
percent (50%) of the total interest in any other Person which is a tenant or
subtenant, however accomplished, whether in a single transaction or in a series
of related or unrelated transactions, shall be deemed an assignment of this
Lease, or of such sublease, as the case may be, except however, that such
transfer shall not be deemed an assignment (and shall not require Landlord's
consent) if such transfer is for a bona fide business purpose and not a device
for the transfer of Tenant's interest in this Lease and Tenant so certifies to
Landlord;

      (x) an agreement by any other Person, directly or indirectly, to assume
Tenant's obligations under this Lease (or to reimburse Tenant for any Rents
payable under this Lease) shall be deemed an assignment;

      (y)any Person to whom Tenant's interest under this Lease passes by
operation of law, or otherwise, shall be bound by the provisions of this
Article; and

      (z) each modification, amendment or extension of any sublease to which
Landlord has previously consented shall be deemed a new sublease.

Tenant agrees to furnish to Landlord upon demand at any time such information
and assurances as Landlord may reasonably request that neither Tenant, nor any
previously permitted subtenant, has violated the provisions of this Article.

18.2. Any assignment, whether made with or without Landlord's consent (as
required by Section 18.1), shall not be effective, and shall be null and void as
against Landlord, unless and until the assignee shall execute, acknowledge and
deliver to Landlord an agreement, in form and substance reasonably satisfactory
to Landlord, under which the assignee assumes the obligations and performance of
this Lease and agrees to be bound personally by all of the covenants,
agreements, terms, provisions and conditions hereby on the part of Tenant to be
performed or observed on and after the effective date of any such assignment.

ARTICLE 19. Quiet Enjoyment.

19.1. Upon paying Fixed Rent and Additional Rent and keeping and performing the
terms, covenants, conditions and provisions of this Lease, Tenant may lawfully
and quietly hold and enjoy the Premises during the Term SUBJECT, HOWEVER, to the
terms, covenants, conditions, and provisions of this Lease.

ARTICLE 20. Real Estate Brokers.

20.1. Tenant covenants, represents and warrants that Tenant has had no dealings
with any real estate broker, finder, or sales agent in connection with the
negotiation and execution of this Lease.

20.2. Tenant agrees to indemnify and hold Landlord harmless from and against any
commission or fee claimed by any real estate broker, finder, or other Person
with respect to the negotiation or execution of this Lease if such claim(s) are
based in whole or in part on dealings with Tenant (or by, through, or under any
Person claiming to have had such dealings). Tenant's indemnity shall cover,
also, all Fees-And-Costs which Landlord incurs to defend against any such claim.

20.3. Landlord agrees to indemnify and hold Tenant harmless from and against any
commission or fee claimed by any real estate broker, finder, or other Person
with respect to the negotiation or execution of this Lease if such claim(s) are
based in whole or in part on dealings with Landlord (or by, through, or under
any Person claiming to have had such dealings). Landlord's indemnity shall
cover, also, all Fees-And-Costs which Tenant incurs to defend against any such
claim.

ARTICLE 21. Adjacent Excavation; Shoring; Construction.

      If excavation, foundation, other substructure or superstructure work, or
other construction work shall be made or authorized in, on or upon land adjacent
to the Premises, the Land and/or the Building, Tenant shall afford to the Person
causing (or authorized to cause) such excavation or construction, license to
enter the Premises to do such work as necessary to preserve the walls of the
Building from injury or

                                       14

<PAGE>

damage, and to support the same by proper foundations, without any claim for
damages or indemnity against Landlord, or diminution or abatement of Rents.

ARTICLE 22. Defaults; Conditional Limitations; Remedies.

22.1. Each of the following events shall be a "Default" under this Lease:

      (a) Tenant fails to pay any installment of Fixed Rent or Additional Rent
within five days after written notice from Landlord, provided that such notice
and cure period shall be afforded to Tenant only two times in any consecutive
12-month period;

      (b) Tenant admits, in writing, that Tenant is unable to pay Tenant's debts
as such become due;

      (c) Tenant makes an assignment for the benefit of creditors;

      (d) Tenant files a voluntary petition in bankruptcy or a petition is filed
against Tenant and an order for relief is entered, or Tenant files any petition
or answer seeking any reorganization, arrangement, composition, readjustment,
liquidation, dissolution or similar relief under any present or future federal,
state or other law, or Tenant seeks or consents to or acquiesces in or suffers
the appointment of any trustee, receiver or liquidator of Tenant or of the
Premises (or Tenant's interest therein) or of all or any substantial part of
Tenant's properties;

      (e) Within sixty (60) days after the commencement of any proceeding
against Tenant seeking any reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any present or
future federal, state or other law, such proceeding is not dismissed; within
sixty (60) days after the appointment (without the consent or acquiescence of
Tenant) of any trustee, receiver or liquidator of Tenant or of all or any
substantial part of Tenant's properties or of the Premises (or Tenant's interest
therein), such appointment is not vacated or stayed on appeal or otherwise, or
within sixty (60) days after the expiration of any such stay, such appointment
shall not have been vacated;

      (f) Tenant sublets the Premises (or any part thereof) or mortgages,
pledges, assigns, transfers, or otherwise disposes of this Lease (or any part of
Tenant's right, title, and interest hereunder) without complying with all
requirements of this Lease;

      (g) Tenant fails to secure or maintain any Required Insurance;

      (h) A levy under execution or attachment is made against Tenant or
Tenant's property and is not vacated or removed by court order, bonding or
otherwise within thirty (30) days thereafter;

      (i) Tenant uses (or permits the use of) the Premises in violation of the
certificate of occupancy for the Premises after five (5) days' written notice
from Landlord; and/or

      (j) Tenant fails to keep or perform any other term, covenant, condition,
or provision of this Lease, and such failure continues for thirty (30) days
after written notice from Landlord - unless such failure is susceptible of cure
and requires work to be performed, acts to be done, or conditions to be removed
which cannot be performed, done or removed within such thirty (30) days, in
which case the Default shall not be deemed to exist as long as Tenant:

            (i) advises Landlord by written notice within ten (10) days after
Landlord's notice that Tenant intends to take all steps necessary to remedy such
failure with due diligence and specifies a reasonable date by which all steps
will have been completed which date shall not be more than ninety (90) days
after Tenant's notice;

            (ii) duly commences curing the same within such period;

            (iii) diligently and continuously prosecutes to completion all steps
necessary to remedy the same and prior to the date specified by Tenant for the
completion thereof.

22.2. If and whenever any Default occurs, at Landlord's option, Landlord may
give written notice to Tenant (the "Termination Notice"), stating that this
Lease and the Term shall expire and terminate on the date specified in such
Termination Notice (which date shall be not less than ten (10) days after the
giving of the Termination Notice). In such event, this Lease and the Term (and
Tenant's entire right, title, and interest therein) shall expire and terminate
as if the date specified in the Termination Notice were the Expiration Date; and
Tenant shall quit and surrender the Premises but shall remain liable as provided
in this Lease.

22.3. If and whenever any Default occurs, and/or if this Lease and the Term
terminate under Section 22.2 or otherwise, Landlord may without notice re-enter
and repossess the Premises using such lawful force for that purpose as may be
necessary without being liable to indictment, prosecution or damages; and Tenant
shall remain liable as provided in this Lease. If Landlord so re-enters, at its
option, and whether or not this Lease and the Term have terminated, Landlord
may:

                                       15

<PAGE>

      (a) repair and alter the Premises in such manner as Landlord may deem
necessary or desirable without relieving Tenant of any liability whatsoever
under this Lease; and/or

      (b) let or relet the Premises (or any parts thereof) for the whole or any
part of the remainder of the Term or for a longer period, in Landlord's name or
as agent of Tenant, and pay and apply all rents and other sums thus collected or
received as follows:

            (i) first, to all costs and expenses (including all Fees-And-Costs
which Landlord pays or incurs in terminating this Lease, re-entering, retaking,
repossessing, repairing and/or altering the Premises, and removing all Persons
and property therefrom;

            (ii) second, to all costs and expenses which Landlord incurs in
securing any new tenant(s) of the Premises (including in such costs brokerage
commissions and expenses of preparing the Premises for reletting, and all
Fees-And-Costs), and, if Landlord maintains the Premises, all costs and expenses
of maintaining the Premises, including utilities); and

            (iii) third, any balance of Rents and other amounts then remaining
on account of Tenant's liability to Landlord under this Lease.

In no case shall re-entry by Landlord, whether under summary proceedings or
otherwise, absolve or discharge Tenant from any liability whatsoever under this
Lease.

22.4. If Tenant Defaults and/or if this Lease and the Term terminate under
Section 22.2 or otherwise, and/or if Landlord re-enters the Premises under
Section 22.3 or by any summary proceeding or other Legal Proceeding, then, in
any of such events:

      (a) Tenant shall pay Landlord all Fixed Rent and Additional Rent due under
this Lease to the date upon which this Lease and the Term have terminated or to
the date of re-entry upon the Premises by Landlord, as the case may be; and

      (b) Tenant shall pay Landlord, also, as damages, any deficiency (a
"Deficiency") between (i) the Fixed Rent and all Additional Rent reserved in
this Lease for the period which otherwise would have constituted the unexpired
portion of the Term and (ii) the amount, if any, of rents actually collected by
Landlord under any reletting effected pursuant to Section 22.3(c) for any part
of such period (after deducting from such collections all Fees-and-Costs and
other amounts paid or incurred by Landlord pursuant to Section 22.3. Tenant
shall pay any Deficiency in installments on the days specified in this Lease for
payments of Fixed Rent. Landlord shall be entitled to recover from Tenant each
Deficiency installment as the same arises; and no Legal Proceeding to collect
any Deficiency installment shall prejudice Landlord's right to collect any
subsequent installment by a similar or other Legal Proceeding.

Whether or not Landlord collects any unpaid Deficiency installments under (b)
above, Tenant shall pay Landlord, on demand, in lieu of any further Deficiency,
as and for liquidated and agreed final damages (it being agreed that it would be
impractical or extremely difficult to fix the actual damages), a sum equal to
the amount by which Fixed Rent and Additional Rent reserved in this Lease for
the period which otherwise would have constituted the unexpired portion of the
Term exceeds the then fair and reasonable rental value of the Premises for the
same period, both discounted to present worth at the rate of four (4%) per cent
per annum. If, before presentation of proof of such liquidated damages to any
court, commission or tribunal, the Premises (or any party thereof) shall have
been relet for the period which otherwise would have constituted the unexpired
portion of the Term, the amount of rent reserved upon such reletting shall be
deemed prima facie the fair and reasonable rental value for the part or the
whole of the Premises so relet during the term of such reletting.

22.5. Landlord may bring Legal Proceedings from time to time, at Landlord's
election, for the recovery of damages, or for a sum equal to any installment or
installments of Fixed Rent or Additional Rent or any Deficiency or other sum
payable by Tenant to Landlord pursuant to this Article; and nothing in this
Lease shall require Landlord to await the originally scheduled Expiration Date
for any such purpose.

22.6. No receipt of moneys by Landlord from Tenant after the giving of a
Termination Notice, or after a termination of this Lease, shall reinstate,
continue or extend the Term or affect any Termination Notice or other written
notice previously given to Tenant, or operate as a waiver of Landlord's right to
enforce payment of Fixed Rent or Additional Rent then or subsequently becoming
due, or operate as a waiver of Landlord's right to recover possession of the
Premises. Tenant agrees that after the giving of a Termination Notice or
commencement of summary proceedings or other Legal Proceeding, or after final
order or judgment for possession of the Premises, Landlord may demand, receive
and collect all moneys without invalidating or rescinding such Termination
Notice, proceeding, order, suit or judgment; and at Landlord's election, all
moneys so collected shall be deemed payments either on account of the use and
occupancy of the Premises or on account of Tenant's liability hereunder.

22.7. If Tenant is dispossessed by judgment or warrant of any court, or in the
event of re-entry or repossession by Landlord or in the event of expiration or
any termination of

                                       16

<PAGE>

this Lease, Tenant (on behalf of Tenant and all Persons claiming by, through, or
under Tenant) hereby expressly waives to the fullest extent permitted by law (a)
service of any notice of intention to re-enter now or hereafter provided by law,
or of commencement of Legal Proceedings for such purpose; (b) any and all right
of redemption now or hereafter provided by law; and (c) any re-entry or
repossession or right to restore the Term or legal continuance of this Lease.

22.8. Landlord and Tenant hereby waive trial by jury in any Legal Proceeding
brought by either against the other with respect to any matter whatsoever
arising out of or in any way connected with this Lease, the relationship of
Landlord and Tenant, Tenant's use or occupancy of the Premises, or any claims of
injury or damage.

22.9. No failure by Landlord or Tenant to insist upon the strict performance of
any covenant, agreement, term or condition of this Lease or to exercise any
right or remedy after any Default, and no acceptance of full or partial Fixed
Rent or Additional Rent during the continuance of any Default shall constitute a
waiver of any such covenant, agreement, term, condition, or Default. No
covenant, agreement, term or condition of this Lease to be performed or complied
with by Tenant, and no Default, shall be waived, altered or modified except by a
written instrument executed by Landlord.

22.10. In event of any Default, or any actual or threatened breach by either
party of any term, covenant, condition or provision of this Lease, the other
party shall be entitled to enjoin such Default or actual or threatened breach
and shall have the right to invoke all rights and remedies allowed at law or in
equity as though this Lease did not provide for re-entry, summary proceedings,
or other remedies.

22.11. Each right and remedy of Landlord in this Lease shall be cumulative and
in addition to every other right or remedy in this Lease, or now or hereafter
existing at law or in equity; and the exercise (or beginning of exercise) by
Landlord of any one or more rights or remedies shall not preclude the
simultaneous or later exercise by Landlord of any and all other rights or
remedies.

ARTICLE 23. Indemnification.

23.1. Tenant hereby agrees, to the fullest extent permitted by law, to indemnify
each and every Indemnitee and hold each and every Indemnitee harmless from and
against (and to pay the full amount of) all loss, liability, obligation, damage,
penalty, tax, cost, claim, demand, judgment, charge, or expense of every kind
whatsoever which any Indemnitee may suffer, incur, or pay out, or which may be
asserted against any Indemnitee, in whole or in part, by reason of, or in
connection with:

      (a) Tenant's use, occupancy, management or control of the Premises, or
Tenant's operations, conduct or activities in the Premises;

      (b) any Legal Proceeding by Landlord to terminate the Lease, or any other
Legal Proceeding by Landlord against Tenant, in which Landlord secures a
judgment against Tenant, final beyond appeal, or in which Landlord receives any
payment from Tenant pursuant to any written settlement agreement disposing of
such Legal Proceeding;

      (c) any Default by Tenant in the observance or performance of any
obligation under the Lease;

      (d) any bodily injury, sickness, disease or death of or to any person or
persons, or any Damage to or of the Premises, (or to property of any other
Person), resulting (or alleged to result) from any acts or omissions of Tenant
or Tenant's Employees;

      (e) any failure of Tenant to comply with Laws or Insurance Requirements;

      (f) any failure of Tenant to secure and maintain Required Insurance (or
any loss of coverage under any Required Insurance); and/or

      (g) any other appearance by Landlord (or any Employee of Landlord) as a
witness or otherwise in any Legal Proceeding whatsoever involving or affecting
Tenant or this Lease.

23.2. Tenant shall defend any and all Legal Proceedings commenced against
Landlord by any Person (other than Tenant) concerning any matter covered by any
indemnity or obligation under Section 23.1 (regardless of any alleged fault or
cause). Tenant shall deliver to Landlord copies of documents served in any such
Legal Proceeding and, whenever requested by Landlord, shall advise as to the
status of such Legal Proceeding. If Tenant fails to defend diligently any such
Legal Proceeding, or if Landlord elects to defend by written notice to Tenant at
any time, Landlord shall have the right (but no obligation) to defend the same
at Tenant's expense. Tenant shall not settle any such Legal Proceeding without
Landlord's prior written consent unless such settlement (i) provides solely for
the payment of money by the Tenant, (ii) provides a complete release of the
Landlord from all matters that were or could have been asserted in connection
with such Legal Proceedings and (iii) does not involve any finding or admission
of any violation of law or any violation of the rights of any Person and does
not affect any other claims that may be made against the Landlord.

23.3. Tenant's indemnities and obligations under Sections 23.1 and 23.2 shall
cover and include all Fees-And-Costs

                                       17

<PAGE>

incurred by Landlord in connection with any and every matter and amount referred
to in Sections 23.1 and 23.2, as well as Fees-And-Costs incurred by Landlord to
enforce Landlord's rights and remedies under this Article. Tenant shall pay all
such Fees-And-Costs to Landlord upon demand.

23.4. Tenant shall notify Landlord immediately of every Legal Proceeding or
claim which may or might be covered by any indemnity under this Article 23
and/or by any Required Insurance. Tenant shall also give timely notice of such
Legal Proceedings and claims to each insurer which has issued an applicable
policy of Required Insurance.

ARTICLE 24. Notices.

      All notices, requests, demands, elections, consents, approvals and other
communications hereunder must be in writing (each such, a "notice") and
addressed to the parties at their Notice Addresses (or to any other address
which either party may designate by notice). Any notice required by this Lease
to be given or made within a specified period of time, or on or before a date
certain, shall be deemed to have been duly given only if delivered by hand,
evidenced by written receipt, or mailed by first class, certified or registered
mail, return receipt requested, postage and fees prepaid. A notice sent by
certified or registered mail (as above) shall be deemed given two (2) Business
Days after mailing. All other notices shall be deemed given when received.

ARTICLE 25. No Waivers.

25.1. No agreement to accept a surrender of this Lease shall be valid unless in
writing signed by Landlord. No Employee of Landlord shall have any power to
accept the keys of the Premises prior to the Expiration Date. The delivery of
keys to any Employee of Landlord shall not operate as a termination of this
Lease or a surrender of the Premises. If Tenant at any time desires to have
Landlord sublet the premises for Tenant's account, Landlord or Landlord's
Employees are authorized to receive said keys for such purpose without releasing
Tenant from any of the obligations under this Lease. The failure of Landlord to
seek redress for violation of, or to insist upon the strict performance of, any
covenant or condition of this Lease or any of the Rules and Regulations (now or
hereafter in effect) shall not prevent a subsequent act, which would have
originally constituted a violation, from having all the force and effect of an
original violation. The receipt by Landlord of Rent with knowledge of the breach
of any covenant of this Lease shall not be deemed a waiver of such breach.

25.2. This Lease contains the entire agreement between the parties, and any
executory agreement hereafter made shall be ineffective to change, modify,
discharge or effect an abandonment of it in whole or in part unless such
executory agreement is in writing and signed by the party against whom
enforcement of the change, modification, discharge or abandonment is sought.

ARTICLE 26. No Representations by Landlord; Landlord's Interest; Transferee
Landlords.

26.1. Tenant agrees that Landlord and Landlord's Employees have made no
representations or promises with respect to the Land, the Building, the
Premises, or any terms, covenants, conditions, or provisions of this Lease,
except as expressly set forth in this Lease; and, except as expressly set forth
in this Lease or in that certain Stock and Asset Purchase Agreement entered into
between Landlord and Capital Assurance Corporation as of February 9, 2005.
Tenant accepts the Premises "as is" in the condition existing on the date of
this Lease.

26.2. Tenant agrees to look solely to Landlord's interest in the Premises for
the satisfaction of any right or remedy of Tenant for the collection of a
judgment (or other judicial process) requiring the payment of money by Landlord
(or Landlord's Affiliates), in the event of any liability by Landlord, and no
other property or assets of Landlord (or Landlord's Affiliates) shall be subject
to levy, execution, attachment, or other enforcement procedure for the
satisfaction of Tenant's remedies under or with respect to this Lease, the
relationship of Landlord and Tenant hereunder, or Tenant's use and occupancy of
the Premises, or any other liability of Landlord (or Landlord's Affiliates) to
Tenant.

26.3. In the event of any transfer of title to the Land or the Building, or in
the event of a lease of the Building, or of the Land and Building, upon written
notification to Tenant of such transfer or lease the transferor Landlord shall
be released from future covenants, obligations and liabilities of Landlord under
this Lease accruing or arising thereafter; and it shall be deemed a covenant
running with the land that the transferee or lessee, as applicable, has assumed
and agreed to carry out any and all covenants, obligations and liabilities of
Landlord under this Lease accruing or arising after such event.

ARTICLE 27. Consent to Jurisdiction.

      Tenant hereby agrees that any Legal Proceeding with respect to this Lease
may be brought in the courts of the State. Tenant hereby accepts with regard to
any such Legal Proceeding, for itself and in respect of its property, generally
and unconditionally, the jurisdiction of such courts. Nothing in this Article
shall affect Landlord's rights to commence Legal Proceedings or otherwise
proceed against Tenant in any other jurisdiction in which assets of Tenant are
located or to serve process in any other manner permitted by applicable law.
Tenant agrees that final judgment in any such Legal Proceeding shall be
conclusive and, to the extent permitted by applicable law, may be enforced in
any other jurisdiction within or outside the United States by suit on the
judgment (a

                                       18

<PAGE>

certified or exemplified copy of which shall be conclusive evidence of the fact
and of the amount of Tenant's indebtedness).

ARTICLE 28. Termination of Current Lease.

28.1. That certain Office Building Lease dated December 28, 2001 (the "Prior
Lease") entered into between Landlord and Tenant with respect to the Premises,
is terminated effective as of the Commencement Date hereof and Landlord
represents and warrants that: (a) there are no other leases or occupancy
agreements now in effect or pending with respect to the Premises, other than
this Lease, and (b) no obligations or liabilities of Tenant (including any
obligation to remove or restore or pay for the removal or restoration of any
existing improvements in the Premises) under the Prior Lease survive termination
of such Prior Lease.

ARTICLE 29. Miscellaneous.

29.1. This Lease shall be governed by and construed in accordance with the laws
of the State of Indiana (without giving effect to principles of conflicts of
laws). This Lease shall be construed without regard to any presumption or other
rule requiring construction against the party causing this Lease to be drafted.
Unless otherwise specifically provided in this Lease, each covenant, agreement,
obligation or other provision of this Lease to be performed by Tenant shall be
deemed as a separate and independent covenant of Tenant, not dependent on any
other provision of this Lease. The captions of this document are for convenience
and do not define, limit or describe the scope of this Lease or the intent of
any provisions thereof.

29.2. Any interest payable by Tenant under this Lease shall be at the Interest
Rate, unless otherwise provided. If and whenever Tenant is in arrears in payment
of Fixed Rent or Additional Rent, Tenant waives Tenant's right (if any) to
designate the items against which any payments made by Tenant are to be
credited; and Tenant agrees that Landlord may apply any payments by Tenant, in
Landlord's judgment, among amounts owed by Tenant to Landlord, notwithstanding
any specific designation or request by Tenant.

29.3. All Exhibits, Schedules, and Riders to this Lease form part of this Lease
and are incorporated in this Lease.

29.4. The terms, covenants, conditions, and provisions of this Lease shall bind
and inure to the benefit of Landlord and Tenant and, subject to Article 18,
their respective legal representatives, successors, and assigns.

29.5. No remedy or election of Landlord under this Lease shall be deemed
exclusive but shall, whenever possible, be cumulative with all other remedies at
law or in equity.

29.6. If any term, covenant, condition or provision of this Lease (or the
application thereof) shall be invalid or unenforceable to any extent, the
remaining terms, covenants, conditions and provisions of this Lease shall not be
affected thereby; and each remaining term, covenant, condition and provision of
this Lease shall be valid and enforceable to the fullest extent permitted by
law.

29.7. Landlord's acceptance of any name for listing on the Building directory or
signage will not be deemed, nor will it substitute for, Landlord's consent, as
required by this Lease, to any sublease, assignment, or other occupancy of the
Premises.

                                       19

<PAGE>

            IN WITNESS WHEREOF, LANDLORD AND TENANT HAVE RESPECTIVELY EXECUTED
THIS LEASE AS OF THE DAY AND YEAR FIRST ABOVE WRITTEN.

                               LANDLORD:

                               STANDARD MANAGEMENT CORPORATION

                               By: /s/ Ronald D. Hunter
                                   ---------------------------------------------
                                   Name: Ronald D. Hunter
                                   Title: Chairman and Chief Executive Officer

                               TENANT:

                               STANDARD LIFE INSURANCE COMPANY OF INDIANA

                               By: /s/ Stephen M. Coons
                                   ---------------------------------------------
                                   Name:  Stephen M. Coons
                                   Title: Executive Vice President and Secretary

<PAGE>

                                                                       Exhibit A

                                  The Premises

            A portion of the first and the entire second floor of the Building
comprising approximately 22,294 square feet as shown on the floor plans attached
hereto as Exhibit A-1.

                                      E-A-1

<PAGE>

                                                                     Exhibit A-1

                                    [Attach]

                                     E-A-1-1

<PAGE>

                                                                       Exhibit B

                         BUILDING RULES AND REGULATIONS

1.    WINDOW TREATMENTS, SIGNS AND EXTERIOR APPEARANCE: No signs, pictures,
      advertisements or notices visible from the exterior of the Premises shall
      be installed, affixed, inscribed, painted or otherwise displayed by Tenant
      on any part of the Premises or the Building unless the same is first
      approved by Landlord. Any such sign, picture, advertisement or notice
      approved by Landlord shall be painted or installed for Tenant at Tenant's
      cost by Landlord or by a party approved by Landlord. No awnings, curtains,
      blinds, shades or screens shall be attached to or hung in, or used in
      connection with any window or door of the Premises without the prior
      consent of the Landlord, including approval by the Landlord of the
      quality, type, design, color and manner of attachment. In the event of any
      breach of the foregoing, Landlord may remove the applicable item, and
      Tenant agrees to pay the cost and expense of such removal and associated
      repairs.

2.    ELECTRICAL LOAD: Tenant agrees that its electrical load shall never exceed
      the capacity of existing feeders, risers or wiring installation if a
      specific capacity is described in Section 4.10 of the Lease. Any wires and
      wiring installed by or on behalf of Tenant within any riser of the
      Building shall be bundled together within such riser and a tag shall be
      placed on such bundle at each floor of the Building identifying the
      floor(s) served by each bundle and the name and telephone number of a
      representative of Tenant to contact in the case of an emergency.

3.    APPROPRIATE USES FOR INTERIOR AND EXTERIOR SPACE: The interior and
      exterior of the Premises shall not be used for storage of any types of
      materials other than business related items in designated areas to be
      determined by Landlord. Tenant shall not do or permit to be done in or
      about the Premises or Building anything which shall increase the rate of
      insurance on said Building or obstruct or interfere with the rights of
      other lessees of Landlord or annoy them in any way, including, but not
      limited to, using any musical instrument, making loud or unseemly noises,
      or singing, etc. The Premises shall not be used for sleeping or lodging.
      No cooking or related activities shall be done or permitted by Tenant in
      the Premises except with permission of Landlord. Tenant will be permitted
      to use for its own employees within the Premises a refrigerator, a small
      microwave oven and Underwriters' Laboratory approved equipment for brewing
      coffee, tea, hot chocolate and similar beverages, provided that such use
      is in accordance with all applicable federal, state, county and city laws,
      codes, ordinances, rules and regulations, and provided that such use shall
      not result in the emission of odors from the Premises into the common area
      of the Building. No vending machines of any kind will be installed,
      permitted or used on any part of the Premises without the prior consent of
      Landlord. No part of said Building or Premises shall be used for gambling,
      immoral or other unlawful purposes. No intoxicating beverage shall be sold
      in said Building or Premises without prior written consent of the
      Landlord.

4.    ANIMALS AND VEHICLES: No birds or animals of any kind shall be brought
      into the Building (other than trained assist dogs required to be used by
      the visually impaired). No bicycles, motorcycles or other motorized
      vehicles shall be brought into the Building.

5.    APPROPRIATE USE OF BUILDING. The sidewalks, entrances, passages,
      corridors, halls, elevators, and stairways in the Building shall not be
      obstructed by Tenant or used for any purposes other than those for which
      same were intended as ingress and egress. No windows, floors or skylights
      that reflect or admit light into the Building shall be covered or
      obstructed by Tenant and no articles shall be placed on the windowsills of
      the Building. Toilets, wash basins and sinks shall not be used for any
      purpose other than those for which they were constructed, and no sweeping,
      rubbish, or other obstructing or improper substances shall be thrown
      therein. Any damage resulting from the Tenant's or its employees' misuse
      of the building shall be borne by Tenant.

6.    KEYS AND LOCKS: Only one key for each office in the Premises will be
      furnished Tenant without charge. Landlord may make a reasonable charge for
      any additional keys. No additional lock, latch or bolt of any kind shall
      be placed upon any door nor shall any changes be made in existing locks
      without written consent of Landlord and Tenant shall in each such case
      furnish Landlord with a key for any such lock. At

                                      E-B-1

<PAGE>

      the termination of the Lease, Tenant shall return to Landlord all keys
      furnished to Tenant by Landlord, or otherwise procured by Tenant, and in
      the event of loss of any keys so furnished, Tenant shall pay to Landlord
      the cost thereof.

7.    HEAVY ARTICLES AND FREIGHT: Landlord shall have the right to prescribe the
      weight, position and manner of installation of heavy articles such as
      safes, machines and other equipment brought into the Building. Tenant
      shall not allow the building structure within the Premises, nor shall
      Tenant cause the elevators of the Building, to be loaded beyond rated
      capacities. No safes, furniture, boxes, large parcels or other kind of
      freight shall be taken to or from the Premises or allowed in any elevator,
      hall or corridor except upon prior notice to Landlord. Tenant shall make
      prior arrangements with Landlord for use of freight elevator for the
      purpose of transporting such articles and such articles may be taken in or
      out of said Building during Business Hours and otherwise as reasonably
      approved by Landlord. Landlord reserves the right to inspect and, where
      deemed appropriate by Landlord, to open all freight coming into the
      Building and to exclude from entering the Building all freight which is in
      violation of any of these Rules and Regulations and all freight as to
      which inspection is not permitted. No hand trucks, mail carts, floats or
      dollies shall be used in passenger elevators. All hand trucks, mail carts,
      floats or dollies used by Tenant or its service providers for the delivery
      or receipt of any freight shall be equipped with rubber tires.

8.    BUILDING AIR QUALITY: Tenant shall not cause or permit any gases, liquids
      or odors to be produced upon or permeate from the Premises, and no
      flammable, combustible or explosive fluid, chemical or substance shall be
      brought into the Building. Tenant shall prevent inadequate ventilation
      from and will assure proper operation of any HVAC systems and/or office
      equipment under Tenant's control, and Tenant will not allow any unsafe
      levels of chemical or biological contaminants in the Premises and will
      take all steps necessary to prevent the release of such contaminants from
      adhesives, machinery, and cleaning agents. Tenant shall cooperate in all
      respects with Landlord regarding the management of the indoor air quality
      in the Building and in connection with the development and implementation
      of an indoor air quality management plan for the Building. Smoking will
      not be permitted in any common areas of the Building or the Project or in
      any premises within the Building. If Tenant shall assert that the air
      quality in the Premises is unsatisfactory or if Tenant shall request any
      air quality testing within the Premises, Landlord may elect to cause its
      consultant to test the air quality within the Premises and to issue a
      report regarding same. If the report from such tests indicates that the
      air quality within the Premises is comparable to the air quality of other
      first-class office buildings in the market area of the Building, or if the
      report from such tests indicates that the air quality does not meet such
      standard as a result of the activities caused or permitted by Tenant in
      the Premises, Tenant shall reimburse Landlord for all costs of the
      applicable tests and report. Additionally, in the event Tenant shall cause
      or permit any activity that shall adversely affect the air quality in the
      Premises, in the common area of the Building or in any premises within the
      Building, Tenant shall be responsible for all costs of remedying same.

9.    HOURS OF OPERATION AND ACCESS: The Building's normal hours of operation
      will be from 8:00 a.m. to 6:00 p.m. - Monday through Friday. All
      non-building personnel (i.e., visitors, guests, vendors, and/or
      contractors) will only be allowed access to the Building through its
      Southeast entrance and will be required to sign in at the Security Desk. A
      call will be placed to the appropriate party announcing their guest has
      arrived. On all weekends and national holidays, the Building will be
      closed. Notwithstanding the Building's normal hours of operation, Tenant
      and its employees shall have the right to enter the Building and Premises
      with card access twenty-four hours per day, seven days per week (including
      weekends and national holidays).

10.   SERVICE CONTRACTS: Unless agreed to in writing by Landlord, Tenant shall
      not employ any person other than Landlord's contractors for the purpose of
      cleaning and taking care of the Premises. Cleaning service will not be
      furnished on nights when rooms are occupied after 6:30 p.m., unless, by
      agreement in writing, service is extended to a later hour for specifically
      designated rooms. Only persons authorized by the Landlord may furnish ice,
      drinking water, towels, and other similar services within the Building and
      only at hours and under regulations fixed by Landlord.

11.   MAINTENANCE: Connection shall not be made to the electric wires or gas or
      electric fixtures, without the consent in writing on each occasion of
      Landlord. All glass, locks and trimmings in or upon the doors and

                                      E-B-2

<PAGE>

      windows of the Premises shall be kept whole and in good repair. Tenant
      shall not injure, overload or deface the Building, the woodwork or the
      walls of the Premises, nor permit upon the Premises any noisome, noxious,
      noisy or offensive business.

12.   ELECTRICAL WORK: If Tenant requires wiring for a bell or buzzer system,
      such wiring shall be done by any of the electricians indicated on the list
      of contractors approved by Landlord attached hereto, and no other
      electrician shall be allowed to do work of this kind unless by the written
      permission of Landlord or its representatives, such permission not to be
      unreasonably withheld, delayed or conditioned. If telegraph or telephonic
      service is desired, the wiring for same shall be approved by Landlord, and
      no boring or cutting for wiring shall be done unless approved by Landlord
      or its representatives, as stated. The electric current shall not be used
      for space heaters unless written permission to do so shall first have been
      obtained from Landlord or its representatives in writing, and at an agreed
      cost to Tenant.

13.   PARKING AND VEHICLES: Tenant and its employees and invitees shall observe
      and obey all parking and traffic regulations as imposed by Landlord. All
      vehicles shall be parked only in areas designated by Landlord.

14.   SOLICITATION: Canvassing, peddling, soliciting and distribution of
      handbills or any other written materials in the Building are prohibited,
      and Tenant shall cooperate to prevent the same.

15.   WASTE RECYLCLING PROGRAMS: Tenant agrees to participate in the waste
      recycling programs implemented by Landlord for the Building, including any
      programs and procedures for recycling writing paper, computer paper,
      shipping paper, boxes, newspapers and magazines and aluminum cans. If
      Landlord elects to provide collection receptacles for recyclable paper
      and/or recyclable aluminum cans in the Premises, Tenant shall designate an
      appropriate place within the Premises for placement thereof, and Tenant
      shall cause its employees to place their recyclable papers and/or cans
      into the applicable such receptacles on a daily basis.

16.   SPECIAL WORK OR SERVICES: Any special work or services requested by Tenant
      to be provided by Landlord shall be provided by Landlord only upon request
      received at the Building Operations and Security Services office. Building
      personnel shall not perform any work or provide any services outside of
      their regular duties unless special instructions have been issued from
      Landlord or its managing agent.

17.   CHANGING THE BUILDING'S NAME OR STREET ADDRESS: Landlord shall have the
      right to change the name of the Building and to change the street address
      of the Building, provided that in the case of a change in the street
      address, Landlord shall give Tenant not less than 180 days' prior notice
      of the change, unless the change is required by governmental authority.

18.   SUPPLEMENTAL RULES AND REGULATIONS. These Rules and Regulations are
      supplemental to, and shall not be construed to in any way modify or amend,
      in whole or in part, the terms, covenants, agreements and conditions of
      any lease of any premises in the Building.

19.   ADDITIONAL RULES AND REGULATIONS: Landlord reserves the right to make such
      other and reasonable Rules and Regulations as in its judgment may from
      time to time be needed for the safety, care and cleanliness of the Project
      and/or the Building, and for the preservation of good order therein.

                                      E-B-3

<PAGE>

                          List of Permitted Contractors

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