Document:

LEASE

                                     Between

                               STEPAR LEASING, LLC
                                    Landlord

                                       and

                        AMERICAN TECHNICAL CERAMICS CORP.
                                     Tenant

                        Effective as of September 1, 2002

<PAGE>
<TABLE>
<CAPTION>
                                TABLE OF CONTENTS
                                                                  PAGE
<S>                                                               <C>
Article I       Demised Premises . . . . . . . . . . . . . . . . .   1
Article II      Term of Lease. . . . . . . . . . . . . . . . . . .   1
Article III     Rent . . . . . . . . . . . . . . . . . . . . . . .   2
Article IV      Payment of Taxes & Assessments . . . . . . . . . .   3
Article V       Use of Premises. . . . . . . . . . . . . . . . . .   6
Article VI      Repairs and Maintenance. . . . . . . . . . . . . .   7
Article VII     Compliance with Laws, Ordinances, Etc. . . . . . .   8
Article VIII    Indemnification of Landlord  . . . . . . . . . . .  10
Article IX      Mechanic's Liens . . . . . . . . . . . . . . . . .  10
Article X       Landlord's Right to Perform Tenant's Covenants . .  12
Article XI      Insurance. . . . . . . . . . . . . . . . . . . . .  12
Article XII     Damage or Destruction. . . . . . . . . . . . . . .  15
Article XIII    Condemnation . . . . . . . . . . . . . . . . . . .  18
Article XIV     Default Provisions . . . . . . . . . . . . . . . .  24
Article XV      Arbitration. . . . . . . . . . . . . . . . . . . .  29
Article XVI     Assignment; Mortgage; Subletting . . . . . . . . .  30
Article XVII    Mortgage of the Fee  . . . . . . . . . . . . . . .  31
Article XVIII   Quiet Enjoyment  . . . . . . . . . . . . . . . . .  32
Article XIX     Estoppel Certificate . . . . . . . . . . . . . . .  32
Article XX      Notices. . . . . . . . . . . . . . . . . . . . . .  33
Article XXI     Surrender of Premises. . . . . . . . . . . . . . .  34
Article XXII    Re-Entry . . . . . . . . . . . . . . . . . . . . .  34
Article XXIII   Cumulative Remedies-No Waiver - No Oral Change . .  35
Article XXIV    Effect of Sale . . . . . . . . . . . . . . . . . .  36
Article XXV     Captions . . . . . . . . . . . . . . . . . . . . .  37
Article XXVI    Covenants to Bind and Benefit  . . . . . . . . . .  37
Article XXVII   Execution of Short Form Lease  . . . . . . . . . .  37
Article XXVIII  Renewal Options    . . . . . . . . . . . . . . . .  38
Article XXIX    Option to Purchase . . . . . . . . . . . . . . . .  42
Article XXX     Right of First Offer . . . . . . . . . . . . . . .  48
</TABLE>

                                        i
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EXHIBITS

Exhibit A   -   Real Property Description                          A-1

                                       ii
<PAGE>
                                    LEASE
                                    -----

     THIS LEASE, entered into as of the 1st day of September, 2002 between
STEPAR LEASING, LLC, a New York limited liability company having an office at
One Norden Lane, Huntington Station, New York 11746 ("Landlord") and AMERICAN
TECHNICAL CERAMICS CORP., a Delaware corporation having an office at One Norden
Lane, Huntington Station, New York 11746 ("Tenant").

                                  WITNESSETH:
                                  ----------

                                    ARTICLE I

                                DEMISED PREMISES
                                ----------------

     That the Landlord, for and in consideration of the rents, covenants and
agreements hereinafter reserved, mentioned and contained, on the part of the
Tenant, its successors and assigns, to be paid, kept and performed, has demised
and leased, and by these presents does demise and lease unto the Tenant, and the
Tenant does hereby take and hire, upon and subject to the conditions hereinafter
expressed, the real property bounded and described on Exhibit A hereto annexed
and made part hereof.

     The term "demised premises" as hereinafter used in this Lease, shall be
deemed to include the land, as described in Exhibit A, and the buildings and
improvements located thereon.

                                   ARTICLE II

                                  TERM OF LEASE
                                  -------------

     TO HAVE AND TO HOLD the said demised premises unto the Tenant, for and
during a term commencing as of September 1, 2002 (the "Commencement Date") and
terminating on September 30, 2007 (the "Expiration Date") unless the said term
shall be sooner terminated or extended as hereinafter provided.

                                   ARTICLE III

                                      RENT
                                      ----
     The Tenant covenants and agrees to pay to the Landlord, in advance on the
first day of each month during the term of this Lease, an amount equal to
one-twelfth (1/12th) of Four Hundred Ten Thousand and 00/100 Dollars
($410,000.00) per annum (the "annual net rental") at the address of the
Landlord, as set forth herein, or at any other address of which written notice
may be given to the Tenant.  The annual net rental shall be over and above the
other and additional payments to be made by the Tenant as provided in this
Lease.  In addition, commencing as of January 1, 2004, and as of January 1 of
each succeeding calendar year during the term of this Lease, Tenant shall pay to
Landlord as rent hereunder an annual amount equal to the percentage increase
(but not decrease) in the Price Index (hereinafter defined) for such month over
the Price Index for January, 2003, multiplied by the annual net rental set forth
above.  Such amount shall be payable in advance in equal monthly installments on
the first day of each calendar month during the term of this Lease.  For
purposes of this Lease, the phrase "Price Index" shall mean the Consumer Price
Index for All Urban Consumers (New York City) (1982-84), published by the Bureau
of Labor Statistics of the United States Department of Labor, specified for "All
Items," or, if the same is no longer published, a successor or substitute index
reasonably selected by Landlord.

     It is the purpose and intent of the Landlord and Tenant that the rent
specified herein shall be absolutely net to the Landlord so that this Lease
shall allow to the Landlord the rent and additional rent specified herein.

     Except where otherwise expressly provided for herein, throughout the entire
term of this Lease, the Tenant will also pay without notice and without
abatement, deduction or set-off, as additional rent, all sums, Impositions (as
defined in Article IV), costs, expenses and other

                                        2
<PAGE>
payments which Tenant in any of the provisions of this Lease assumes to pay and
in the event of any non-payment thereof, the Landlord shall have (in addition to
all other rights and remedies) all the rights and remedies provided for herein
or by law in the case of non-payment of the base or net rent.

                                   ARTICLE IV

                         PAYMENT OF TAXES & ASSESSMENTS
                         ------------------------------

     Tenant will pay or cause to be paid before any fine, penalty, interest or
cost which may be added thereto for the non-payment thereof, all realty tax
increases assessed after the fiscal year July 1, 2002 to June 30, 2003,
assessments, water and sewer rents, rates and charges, charges for public
utilities, excises, levies, license and permit fees and other governmental
charges, general and special, ordinary and extraordinary, foreseen and
unforeseen, of any kind and nature whatsoever which at any time during the term
of this Lease may have been or may be assessed, levied, confirmed, imposed upon,
or grow out of or in respect of or become a lien on the demised premises or any
part thereof or any appurtenance thereto, or with respect to any personal
property installed upon the premises of with respect to any use or occupation of
the demised premises.  All such taxes, assessments, water and sewer rents, rates
and charges, excises, levies, license fees and other governmental charges being
hereinafter referred to as "Impositions," and any of the same being hereinafter
referred to as an "Imposition."

     If by law any Imposition may, at the option of the taxpayer, be paid in
installments (whether or not interest shall accrue on the unpaid balance of such
Imposition), Tenant may exercise the option to pay the same, together with any
accrued interest on the unpaid balance of such Imposition, in installments and,
in such event, shall pay such installments as may become due during the term of
this Lease as the same respectively become due and before any fine, penalty,
further interest or cost may be added thereto.

                                        3
<PAGE>
     Nothing herein contained shall require Tenant to pay income taxes assessed
against the Landlord, or any estate, succession or transfer taxes of the
Landlord; provided, however, that if at any time during the term of this Lease
the present method of taxation or assessment shall be changed so that the whole
or any part of the taxes, assessments, levies, Impositions or charges now
levied, assessed or imposed on real estate and the improvements thereon shall be
levied, assessed and imposed wholly or partially, either as a capital levy or
otherwise, on the rents received therefrom or any tax, assessment, levy,
Imposition or charge or any part thereof which shall be measured by or based in
whole or in part upon the land or upon the buildings constituting a portion of
the demised premises or the personal property therein contained and shall be
imposed upon the Landlord, then all such taxes, assessments, levies, Impositions
or charges or the part thereof so measured or based shall be deemed to be
included within the term "Impositions" for the purposes hereof, to the extent
that such tax would be payable, if the demised premises or personal property
were the only property of the Landlord subject to such tax and Tenant will pay
and discharge the same as herein provided in respect of the payment of
Impositions.

     Tenant will furnish to the Landlord, within thirty (30) days after the date
when any Imposition would become due and payable, official receipts of the
appropriate taxing authorities, or other evidence satisfactory to Landlord
evidencing the payment thereof.

     The Tenant shall have the right to contest the amount or validity of any
Imposition by appropriate legal proceedings (but this shall not be deemed or
construed in any way as relieving, modifying or extending the Tenant's covenants
to pay or its covenants to cause to be paid any such Imposition at the time and
in the manner as in this Article provided), on condition, however, that such
legal proceedings shall not operate to prevent the collection of the Imposition

                                        4
<PAGE>
so contested and shall not cause the sale of the demised premises, or any part
thereof, to satisfy the same, and the Tenant shall have deposited with a bank or
trust company, as Trustee, as security for the payment of such Imposition, money
in an amount sufficient to pay such Imposition, together with all interest and
penalties in connection therewith, and all charges that may or might be assessed
against, or become a charge on, the demised premises, or any part thereof, in
said legal proceedings. Upon termination of such legal proceedings, or at any
time when the Landlord shall deem in Landlord's reasonable discretion the moneys
deposited with said bank or trust company to be insufficient security for the
purpose for which they are deposited, the Tenant shall forthwith, upon demand,
deposit with such depository, such additional money as is sufficient and
necessary for the purpose for which said money was originally deposited, and
upon failure of the Tenant so to do, the said moneys so deposited shall be
applied to the payment, removal and discharge of said Imposition and the
interest and penalties in connection therewith and the charges and costs
accruing in such legal proceedings, and the balance, if any, shall be paid to
the Tenant, provided the Tenant is not in default under this Lease. In the event
that such moneys shall be insufficient for this purpose, the Tenant shall
forthwith pay over to the Landlord an amount of money sufficient, together with
the moneys so deposited pursuant to this Article, to pay the same. In the event
of any default by the Tenant under this Lease, the Landlord is authorized to use
the money deposited under this Article to apply on account of such default or to
pay the said Imposition. The Tenant shall not be entitled to interest on the
moneys deposited pursuant to this Article.

     The Landlord agrees to join in any such proceedings if the same be required
to legally prosecute such contest of the validity of such Imposition; provided,
however, that the Landlord shall not thereby be subjected to any liability for
the payment of any costs or expenses in

                                        5
<PAGE>
connection with any proceedings brought by the Tenant; and the Tenant covenants
to indemnify and save harmless the Landlord from any such costs and expenses.
The Tenant shall be entitled to any refund of any such Imposition and penalties
or interest thereon which have been paid by the Tenant or paid by the Landlord
and for which the Landlord has been fully reimbursed.

     The certificate, advice or bill of the appropriate official designated by
law to make or issue the same or to receive payment of any such Imposition, of
the non-payment of any such Imposition, shall be conclusive evidence that such
Imposition is due and unpaid at the time of the making or issuance of such
certificate, advice or bill.

                                    ARTICLE V

                                 USE OF PREMISES
                                 ---------------

     The Tenant shall use the demised premises, without warranty by the Landlord
as to such use being permissible thereon, for the manufacture of electronic
components, or such other lawful use or uses which are permitted under the
zoning ordinances of the Town of Huntington Station as they are presently
constituted or may hereafter be constituted, which uses would not require any
variance or change of zone or specified uses necessitating a public hearing
before an appropriate board of the Town of Huntington Station, and the Tenant
will not use or allow the demised premises or any part thereof to be used or
occupied for any unlawful purpose or in violation of any Certificate of
Occupancy or Certificate of Compliance covering the use of the demised premises
or any part thereof or in violation of any permit or requirements connected with
the use of the demised premises or any part thereof and will not suffer any act
to be done or any condition to exist in the demised premises or any part thereof
or any article to be brought thereon which may be dangerous, unless safeguarded
as required by law, or which may, in law, constitute a nuisance, public or
private, or which may make void or voidable any insurance then in force with
respect thereto.

                                        6
<PAGE>
     Tenant hereby grants unto the Landlord permission for it or its authorized
representatives to enter the demised premises at all reasonable times, and upon
24 hours notice and without interference with Tenant's business, for the purpose
of inspecting the same and making all necessary repairs thereto and performing
any work thereon that may be necessary by reason of Tenant's failure to make
such repairs or perform any such work or to commence the same after written
notice from Landlord. Nothing herein shall imply any duty on the part of the
Landlord to do any such work, and performance thereof by the Landlord shall not
constitute a waiver of Tenant's default in failing to perform the same. The
Landlord shall have the right to enter the demised premises at all reasonable
times, and upon 24 hours notice and without interference with Tenant's business,
during the usual business hours, for the purpose of showing same to prospective
purchasers or mortgagees, if any, of the demised premises.

                                   ARTICLE VI

                             REPAIRS AND MAINTENANCE
                             -----------------------

     Tenant agrees that, beginning on the date it takes possession of the
demised premises and continuing throughout the term of this Lease, at its sole
cost and expense, it will keep and maintain the demised premises, including,
without limitation, any altered, rebuilt or additional buildings, structures,
equipment, machinery, fixtures, furnishings and other personal property,
improvements and appurtenances thereto, in good repair and appearance, and will
with reasonable promptness make all structural and nonstructural, foreseen and
unforeseen, and ordinary and extraordinary changes, repairs and replacements of
every kind and nature which may be required to be made upon or in connection
with the demised premises or any part thereof in order to keep and maintain the
demised premises in such good repair and appearance.  All such changes, repairs
and replacements shall be of first class quality sufficient for the proper
maintenance and operation of the demised premises.  Tenant shall not permit the
accumulation of

                                        7
<PAGE>
waste or refuse matter, nor permit anything to be done on the demised premises
which would invalidate or prevent the procurement of any insurance policies
which may at any time be required pursuant to the provisions of Article XI.
Landlord shall not be required to maintain, repair or rebuild or to make any
alterations, replacements or renewals of any nature or description in or to the
demised premises or any part thereof, whether ordinary or extraordinary,
structural or nonstructural, foreseen or unforeseen, or to maintain the demised
premises or any part thereof in any way, and Tenant hereby expressly waives any
right to make repairs at the expense of Landlord which may be provided for in
any statute or law in effect at the time of the execution of this lease or any
statute or law which may thereafter be enacted.

                                   ARTICLE VII

                     COMPLIANCE WITH LAWS, ORDINANCES, ETC.
                     --------------------------------------

     The Tenant shall, throughout the demised term, and at no expense whatsoever
to the Landlord, promptly comply, or cause compliance, with all laws and
ordinances and the orders, rules, regulations and requirements of all federal,
state, county and municipal governments and appropriate departments,
commissions, boards and officers thereof, structural or non-structural, foreseen
or unforeseen, ordinary as well as extraordinary, and whether or not the same
shall presently be within the contemplation of the parties hereto or shall
involve any change of governmental policy or require structural or extraordinary
repairs, alterations or additions and irrespective of the cost thereof, which
may be applicable to the demised premises, including, without limitation, the
fixtures and equipment thereof and the sidewalks, curbs and vaults, if any,
adjoining the demised premises.

     The Tenant shall have the right to contest by appropriate legal proceeding,
before any tribunal having jurisdiction, whether judicial or administrative,
without cost or expense to the Landlord, the validity of any law, ordinance,
order, rule, regulation or requirement of the nature

                                        8
<PAGE>
herein referred to; provided, however, that if requested to do so by the
Landlord, the Tenant shall first furnish to the Landlord a bond, in form and
amount, and issued by a surety company reasonably satisfactory to the Landlord,
guaranteeing to the Landlord compliance by the Tenant with such law, ordinance,
order, rule, regulation or requirement, and indemnifying the Landlord against
any and all liability, loss and damage which the Landlord may sustain by reason
of the Tenant's failure or delay in complying therewith. The Landlord shall have
the right, but shall be under no obligation, to contest by appropriate legal
proceedings, at the Landlord's expense, any such law, ordinance, rule,
regulation or requirement.

     No abatement, diminution or reduction of the annual rental, or of any
additional rent or other charges required to be paid by the Tenant pursuant to
the terms of this Lease, shall be claimed by, or allowed to, the Tenant for any
inconvenience, interruption, cessation or loss of business or otherwise caused,
directly or indirectly, by any present or future laws, rules, requirements,
orders, directions, ordinances or regulations of the United States of America,
or of the State, County or City governments, or of any other municipal,
governmental or lawful authority whatsoever, or by priorities, rationing or
curtailment of labor or materials, or by war, civil commotion, strikes or riots,
or any matter or thing resulting therefrom, or by any other cause or causes
beyond the control of the Landlord, nor shall this Lease be affected by any such
cause. No diminution of the amount of space used by the Tenant caused by legally
required changes in the construction, equipment, operation or use of the demised
premises shall entitle the Tenant to any reduction or abatement of annual
rental, additional rent or any other charges required to be paid by the Tenant
hereunder.

                                        9
<PAGE>
     Tenant shall likewise observe and comply with the requirement of all
policies of public liability and fire insurance and all other policies of
insurance at any time in force with respect to the demised premises.

                                  ARTICLE VIII

                           INDEMNIFICATION OF LANDLORD
                           ---------------------------

     Landlord shall not in any event whatsoever be liable for any injury or
damage to any person happening on or about the demised premises, or for any
injury or damage to the demised premises, or to any property of Tenant, or to
any property of any other person, firm, association or corporation on or about
the demised premises.  Except to the extent arising from Landlord's negligence
or willful misconduct, Tenant shall indemnify and save harmless Landlord from
and against any and all liability, loss, cost, expense and damages and from and
against any and all suits, claims and demands of every kind and nature,
including reasonable counsel fees, by or on behalf of any person, firm,
association or corporation, arising out of or based upon any accident, injury or
damage, however occurring, which shall or may happen on or about the demised
premises, or in or about the street parking lots, sidewalks or curbs in front of
or adjacent thereto.

     In case any action or proceeding is brought against Landlord by reason of
any such claim, Tenant, upon written notice of the Landlord, and at Tenant's
expense, shall resist or defend such action or proceeding by counsel approved by
Landlord, in writing, such approval not to be unreasonably withheld.

                                   ARTICLE IX

                                MECHANIC'S LIENS
                                ----------------

     The Tenant shall not suffer or permit any mechanic's or artisan's or other
liens to be filed or placed or exist against the fee of the demised premises nor
against the tenant's leasehold interest in said premises by reason of work,
labor, services or materials supplied or claimed to

                                       10
<PAGE>
have been supplied to the Tenant or anyone holding the demised premises or any
part thereof through or under the Tenant, and nothing in this Lease contained
shall be deemed or construed in any way as constituting the consent or request
of the Landlord, expressed or implied, by inference or otherwise, to any
contractor, subcontractor, laborer or materialman for the performance of any
labor or the furnishing of any materials for specific improvement, alteration or
repair of or to the demised premises or any part thereof, nor as giving the
Tenant any right, power or authority to contract for or permit the rendering of
any services or the furnishing of any materials that would give rise to the
filing of any mechanic's or other liens against these of the demised premises.
If any such mechanic's lien shall at any time be filed against the demised
premises, the Tenant shall cause the same to be discharged of record within
sixty (60) days after the date of filing the same or, in the alternative, the
Tenant may bond the lien and deliver a copy of the said bond to the Landlord
within the said sixty (60) day period. If the Tenant shall fail to discharge
such mechanic's lien or deliver said bond within such period, then, in addition
to any right or remedy of the Landlord, the Landlord may, but shall not be
obligated to, discharge the same either by paying the amount claimed to be due
or by procuring the discharge of such lien by deposit in court or bonding and in
such event the Landlord shall be entitled, if the Landlord so elects to compel
the prosecution of an action for the foreclosure of such mechanic's lien by the
lienor and to pay the amount of the judgment, if any, in favor of the lienor
with interest, costs and allowances. Any amount paid by the Landlord for any of
the aforesaid purposes, or for the satisfaction of any other lien not caused or
claimed to be caused by the Landlord, and all reasonable expenses incurred by
the Landlord, including reasonable attorneys' fees and other expenses, in
defending any such action or in procuring the discharge of such lien, with all
necessary disbursements in connection therewith, shall be repaid by the Tenant
to the Landlord

                                       11
<PAGE>
on demand with interest thereon at the rate of six percent (6%) per annum from
the date of payment and if unpaid may be treated as additional rent under the
terms of this Lease, and the same may, at the option of the Landlord, be added
to any fixed rent then due or thereafter falling due hereunder.

                                    ARTICLE X

                 LANDLORD'S RIGHT TO PERFORM TENANT'S COVENANTS
                 ----------------------------------------------

     In the event that the Tenant shall default in the performance of any of the
terms, covenants and provisions herein contained and shall fail to correct the
same after notice, the Landlord may perform the same for the account of the
Tenant and the reasonable cost thereof paid by the Landlord in the performance
of the same shall be deemed to be additional rent payable by the Tenant for the
demised premises, and the same shall be payable to the Landlord on demand, or
the same may, at the option of the Landlord, be added to any fixed rent then due
or thereafter falling due thereunder; and the Tenant covenants to pay or cause
to be paid any such sums or sums as aforesaid; and the Landlord shall have (in
addition to any right or remedy of the Landlord) the same rights and remedies in
the event of the non-payment thereof by the Tenant as in the case of default by
the Tenant in the payment of rent.

                                   ARTICLE XI

                                    INSURANCE
                                    ---------

     Tenant, at its sole cost and expense, will, throughout the entire term of
this Lease, keep the land and the building upon the demised premises insurable
for the mutual benefit of the Landlord and the Tenant during the term of this
Lease against loss or damage by fire and against loss or damage by other risks
now embraced by "Extended Coverage" in amounts sufficient to prevent Landlord
from becoming a coinsurer under the terms of the applicable policies, but in any
event in an amount not less than eighty percent (80%) of the then full insurable
value of such

                                       12
<PAGE>
building. The term "full insurable value" shall mean actual replacement cost.
Such "full insurable value" shall be determined from time to time (but not more
frequently than once in any twenty-four (24) calendar months) by a written
statement of the Landlord's insurance representative. In the event Tenant should
disagree with the amount so stated to be required, then in that event, such
"full insurable value" shall be determined by an appraiser, engineer, architect
or contractor designated by the Landlord and paid by the Tenant. No omission on
the part of the Landlord to request any such determination shall relieve Tenant
of any of its obligations under this Article XI.

     Tenant, at its sole cost and expense, but for the mutual benefit of
Landlord and Tenant shall maintain:

          (a)  Personal injury and property damage liability insurance against
claims for bodily injury, death or property damage, occurring thereon, in or
about the demised premises, property and passageways, such insurance to afford
minimum protection, during the term of this Lease, of not less than $3,000,000
in respect of bodily injury or death to any one person, and of not less than
$3,000,000 in respect of any one accident, and of not less than $500,000 for
property damage.

          (b)  Such other insurance and in such amounts as may from time to time
be reasonably required by Landlord against other insurable hazards which are at
the time commonly insured against in the case of premises similarly situated,
due regard being, or to be, given to the height and type of building, its
construction, use and occupancy.

     All insurance provided for in this Article XI shall be effected under valid
and enforceable policies issued by insurers of recognized responsibility which
are licensed to do business in the State of New York.  Upon the commencement of
this Lease, and thereafter not less than thirty

                                       13
<PAGE>
(30) days prior to the expiration dates of the expiring policies theretofore
furnished pursuant to this Article XI, or any other Article of this Lease,
originals of the policies bearing notations evidencing the payment or premiums
or accompanied by other evidence satisfactory to Landlord of such payment, shall
be delivered by Tenant to Landlord.

     All policies of insurance shall be carried in favor of the Landlord, the
Tenant and any fee mortgagees, as their respective interest may appear. Each
policy or certificate therefor issued by the insurance company shall, to the
extent obtainable, contain an agreement by the insurer that such policy shall
not be canceled without at least ten (10) days prior written notice to the
Landlord or to any mortgagee to whom loss thereunder may be payable.

     If at any time during the term of this Lease Landlord shall request that
the amount of liability insurance provided by Tenant as required by the
provisions of this Article XI, be increased on the ground that such coverage is
inadequate properly to protect the interest of Landlord, or if Landlord shall
require other insurance pursuant to other provisions of this Article XI, and
Tenant shall refuse to comply with any such request or requirement, the dispute
shall be submitted to arbitration as provided in Article XV hereof. Tenant shall
thereafter carry the amount, and such kind of insurance as determined by such
arbitration to be adequate and required, but in no event shall the amount of
public liability insurance be less than the amounts now specified in this
Article XI.

     The Tenant further covenants and agrees, any law to the contrary
notwithstanding, that no loss or damage by fire or other casualty of or to the
building and improvements at any time on the demised premises, shall operate to
terminate this Lease or to relieve or discharge the Tenant from the payment of
taxes, insurance premiums, Impositions, rent, additional rent and any moneys to
be treated as rent hereunder, as the same becomes due and payable, as
hereinbefore

                                       14
<PAGE>
provided, or from the performance and fulfillment of any of the Tenant's
obligations and undertakings herein.

                                   ARTICLE XII

                              DAMAGE OR DESTRUCTION
                              ---------------------

     In case of casualty to the demised premises resulting in damage or
destruction, Tenant shall promptly give written notice thereof to Landlord.
Regardless of the amount of any such damage or destruction, Tenant shall at its
sole cost and expense, provided that sufficient insurance proceeds are available
and subject to the terms and conditions of any mortgage encumbering the demised
premises, restore, repair, replace, rebuild or alter the same as nearly as
possible to its value, condition and character immediately prior to such damage
or destruction, unless Tenant and Landlord mutually agree to revisions or that a
different type building be built or that no building be built; provided,
however, that in the event sufficient insurance proceeds shall not be available
solely as a result of Tenant's gross negligence or willful misconduct, Tenant
shall be obligated to restore, repair, replace, rebuild or alter as aforesaid.
Notwithstanding the foregoing to the contrary, if Tenant shall only have
available insurance proceeds in the amount of eighty percent (80%) of the
replacement cost based on the amount of insurance carried by Tenant, then Tenant
shall be responsible for paying the balance of such replacement costs.  Such
restoration, repairs, replacements, rebuilding or alterations shall be commenced
promptly and prosecuted with reasonable diligence, unavoidable delays excepted.

     All insurance money paid to Landlord on account of such damage or
destruction, less the actual cost, fees and expenses, if any, incurred in
connection with adjustment of the loss, shall be applied by Landlord to the
payment of the cost of the aforesaid demolition, restoration, repairs,
replacement, rebuilding or alterations, including the cost of temporary repairs
or for the protection of property pending the completion of permanent
restoration, repairs, replacements,

                                       15
<PAGE>
rebuilding or alterations (all of which temporary repairs, protection of
property and permanent restorations, repairs, replacement, rebuilding or
alterations are hereinafter collectively referred to as the "restoration"), and
shall be paid out from time to time as such restoration progresses upon the
written request of Tenant which shall be accompanied by the following:

          (1)  A certificate signed by the Tenant, dated not more than thirty
     (30) days prior to such request, setting forth the following:

               (A)  That the sum then requested either has been paid by Tenant,
          or is justly due to contractors, sub-contractors, materialmen,
          engineers, architects or other persons who have rendered services or
          furnished materials for the restoration therein specified, the names
          and addresses of such persons, a brief description of such services
          and materials, the several amounts so paid or due to each of said
          persons in respect thereof, that no part of such expenditures has been
          or is being made the basis, in any previous or then pending request,
          for the withdrawal of insurance money or has been made out of the
          proceeds of insurance received by Tenant, and that the sum then
          requested does not exceed the value of the services and materials
          described in the certificate.

               (B)  That except for the amount, if any, stated (pursuant to the
          foregoing subclause (1) (A)) in such certificate to be due for
          services or materials, there is no outstanding indebtedness known to
          the persons signing such certificate, after due inquiry, which is then
          due for labor, wages, materials supplies or services in connection
          with such restoration which, if unpaid, might become the basis of a
          vendor's, mechanic's, laborer's or materialman's statutory

                                       16
<PAGE>
          or similar lien upon such restoration or upon the demised premises or
          any part thereof or upon Tenant's leasehold interest therein.

               (C)  That the cost, as estimated by the persons signing such
          certificate, of the restoration required to be done subsequent to the
          date of such certificate in order to complete the same, does not
          exceed the insurance money, plus any amount deposited by Tenant to
          defray such cost and remaining in the hands of Landlord after payment
          of the sum requested in such certificate.

          (2)  An opinion of counsel or other evidence, reasonably satisfactory
     to Landlord, to the effect that there has not been filed with respect to
     the demised premises or any part thereof or upon Tenant's leasehold
     interest therein any vendor's, mechanic's, laborer's, materialman's or
     other lien which has not been discharged of record, except such as will be
     discharged by payment of the amount then requested.

     Upon compliance with the foregoing provisions, Landlord shall, out of such
insurance money, pay or cause to be paid to Tenant or the persons named
(pursuant to subclause (1) (A) above) in such certificate the respective amounts
stated therein to have been paid by Tenant or to be due to it, as the case may
be.

     If the insurance money at the time held by Landlord, less the actual cost,
fees and expenses, if any, incurred in connection with the adjustment of the
loss, shall be insufficient to pay the entire cost of such restoration, Tenant
will pay the deficiency.

     Upon receipt by Landlord of satisfactory evidence, of the character
required by clauses (1) and (2) above, that the restoration has been completed
and paid for in full and that there are no liens of the character referred to
therein, any balance of the insurance money at the time held by Landlord shall
be paid to Tenant.

                                       17
<PAGE>
     The Tenant shall procure Workmen's Compensation insurance covering all
persons employed in connection with the work and with respect to whom death or
bodily injury claims could be asserted against Landlord, Tenant or the demised
premises, and also procure, maintain and furnish to the Landlord general
liability builders' risk, and such other insurance and in such amounts as may
from time to time be required by the Landlord against other insurable hazards
which at the time are commonly insured against in the case of demolition of
existing building and improvements and construction of a new building and
improvements.

     No destruction of or damage to the demised premises or any part thereof by
fire or any other casualty shall permit Tenant to surrender this Lease or shall
relieve Tenant from its liability to pay the full rent and additional rent and
other charges or Impositions payable under this Lease or from any of its other
obligations under this Lease, and Tenant waives any rights now or hereafter
conferred upon it by statute or otherwise to quit or surrender this Lease or the
demised premises or any part thereof, or to any suspension, diminution,
abatement or reduction of rent on account of any such destruction or damage,
except to the extent to which the Landlord shall have received and retained a
net sum as proceeds of any rent insurance.

     In the event that the Tenant erects any new building and improvements in
accordance with the provisions of this Lease, all of the provisions of this
Lease with respect to the obligations of the Tenant in connection with any
building and improvements on the demised premises shall apply with equal force
and effect to such new building and improvements.

                                  ARTICLE XIII

                                  CONDEMNATION
                                  ------------

     1.   DEFINITIONS
          -----------

          (a)  A title vesting in a condemnation proceeding is the date fixed by
the appropriate law when the condemnor became vested with title and specifically
includes a vesting

                                       18
<PAGE>
of title de facto - as well as de jure - whichever occurs earlier. Condemnation
proceeding shall also include within its definition a private purchase in lieu
of condemnation.

          (b)  Building improvements include, but are not limited to, stores,
offices, apartments and all structures on the land which can be rented or leased
for the protection of income to the owner.

          (c)  Land improvements are defined to include, without limitation,
water and sewer mains and connections, telephone and electric lines, blacktop
paving of parking areas and water storage tanks.

          (d)  Tenant's fixtures are defined and listed generally and
specifically as plumbing, heating, air conditioning, special water lines,
installation costs of heavy machinery, built-in cabinets, refrigerators,
freezers, storage rooms, fish tanks and their associated components.

          (e)  The Tenant shall have no claim in any condemnation proceeding in
the event of a total or partial taking unless the rental specified in this Lease
is less than the economic or market value rental for this space on the day of
taking. Value of the land means the value of the demised premises as if vacant,
unencumbered and unimproved on the date of vesting.

          (f)  Partial taking is defined as the taking of less than fifty
percent (50%) of the land and buildings thereon.

     2.   LEASE
          -----

     If, at any time during the term of this Lease, title to the whole or
substantially all the demised premises shall be taken in condemnation
proceedings or by any right of eminent domain, then and in that event, this
Lease shall terminate on the date of such taking and the rent and any additional
rent reserved herein shall be apportioned and paid to the date of such taking.
Substantially all of the demised premises shall be deemed to have been taken if
the portion

                                       19
<PAGE>
remaining cannot reasonably be used, after restoration, to a complete
architectural unit for the conduct and operation of a building for manufacturing
electronic components, including necessary accessory parking or adequate access
to the demised premises at the grade of streets adjoining the demised premises
is denied.

     3.   TOTAL OR SUBSTANTIAL TAKING; DISTRIBUTION OF PROCEEDS
          -----------------------------------------------------

     In the event of total taking or taking of substantially all of the demised
premises as hereinabove defined, the rights and interests of the Landlord and
Tenant in and to the entire award (including interest), or the aggregate of any
separate awards (made by the court or otherwise), after payment of all
reasonable fees and expenses incurred by both parties in connection with the
establishing and collection of such awards, shall be apportioned as follows:
(a) the Landlord shall be entitled to receive and retain such portion of the
award as shall represent compensation for the value of the land and improvements
thereon, including severance and consequential damages to the remainder, (b) the
Tenant may receive compensation for this leasehold value, if any, subject to the
provisions of subdivision 1(e) above set forth, and shall be entitled to
compensation for relocation expenses, fixtures owned by it at time of vesting
and good will.  Tenant's fixtures shall not include the electric wiring, air
conditioning ducts, heating units and conduits, floors and ceilings all of which
items shall be included in the Landlord's share of the award.

     4.   UNSUBSTANTIAL PARTIAL TAKING (less than 50%)
          --------------------------------------------

     In the event of partial taking or a taking of less than substantially all
of the demised premises (as hereinbefore defined) the term of this Lease shall
not be reduced or affected in any way and the Tenant shall restore the
improvements in accordance with subdivision 4(c) hereinafter set forth.  The
awards shall be apportioned as follows:

                                       20
<PAGE>
          (a)  The Landlord shall first be entitled to receive and retain such
portion of the award or awards with the interest thereon as shall represent
compensation for the value of the land or the part thereof so taken considered
at the option of Landlord as vacant and unimproved, or based on economic value
at the time of the taking, plus severance and consequential damages (but after
giving effect to the completion of the restoration by Tenant) to the remainder
considered as vacant and unimproved.

          (b)  If the balance of said award or awards shall be in an amount of
Fifty Thousand ($50,000) Dollars or less such awards shall be paid to the Tenant
for application by the Tenant to the restoration and repair of the improvements
on the demised premises. If the balance of the award be an amount in excess of
Fifty Thousand ($50,000) Dollars, then, and in that event, said sum shall be
paid to the Landlord as Condemnation Trustee for application pursuant to the
terms of sub-section (e) of this clause.

          (c)  The Tenant, at its sole cost and expense, and whether or not the
award payable under sub-section (b) of this clause shall be sufficient for the
purpose, shall proceed with reasonable diligence to construct, repair, alter and
restore the remaining part of the demised premises so that said premises will
contain complete architectural units for use as a building for manufacturing
electronic components and related parking facilities, with that combination of
rentable space and facilities for the on-site parking of automobiles which will
result in the greatest number of square feet of rentable space permitted by the
law of the appropriate municipality or other governmental unit having
jurisdiction thereof (such construction, repairs, alterations or restoration,
including temporary repairs, referred to in this Condemnation Article XIII as
"Restoration").

                                       21
<PAGE>
          (d)  The conditions under which the Restoration is to be performed and
the method of proceeding with the performing of the same shall be covered by all
of the provisions of this Lease relating to the restoration after damage or
destruction as provided in Article XII. The cost of the Restoration shall
include the reasonable fees of an architect, if any, employed by the Landlord
for the purpose of examining and passing upon the plans and specifications and
supervising the Restoration.

          (e)  If the awards are deposited with the Landlord as Condemnation
Trustee under the provisions of sub-section (b) of this clause, the Landlord
shall hold, apply, make available and pay over to the Tenant the award in the
same manner as is provided with respect to insurance proceeds under the
appropriate provisions of this Lease, but subject to the terms of any mortgage
encumbering the demised premises and provided that any balance of the award not
used for the Restoration shall be divided between Landlord and Tenant as
follows:

          (i)  The Landlord shall be entitled to receive and retain such portion
               of the balance of the award or awards with interest thereon as
               the number of months elapsed since the commencement of the term
               bears to the number of months from the commencement of the term
               to the then scheduled expiration of the term, during which the
               taking occurs.

          (ii) The balance of any award or awards shall belong to the Tenant,
               subject to the provisions of subdivision 1(e) above set forth.

          (f)  In the event of a taking as described herein, there shall be no
abatement of rent allowed to Tenant.

     5.   TEMPORARY EASEMENT TAKING
          -------------------------

     If the whole or any part of the demised premises or of Tenant's interest in
this Lease shall be taken in condemnation proceedings or by any right of eminent
domain for a temporary use or

                                       22
<PAGE>
occupancy, the term of this Lease shall not be reduced or affected in any way.
Tenant shall continue to pay in full the rent, additional fees and other charges
herein reserved, in the manner and at the times herein specified without
reduction or abatement, and, except only to the extent that Tenant is prevented
from so doing by reason of any order of the condemning authority, Tenant shall
continue to perform and observe all of the other covenants, agreements, terms
and provisions of this Lease as though such taking had not occurred.

     In the event of any such taking, Tenant shall be entitled to receive the
entire amount of any award made for such taking whether such award is paid by
way of damages, rent or otherwise, unless such period of temporary use or
occupancy shall extend beyond the expiration date upon the term of this Lease.
In such latter case, the award, after payment to Landlord therefrom of the
estimated cost of Restoration of the demised premises to the extent that any
such award is intended to compensate for damage to the demised premises, shall
be apportioned between Landlord and Tenant as of such date of expiration in the
same ratio with the parts of the entire period for which such compensation is
made falling before the date of expiration and that part falling after, bear to
such entire period; provided, however, that if the portion of the award payable
                    --------  -------
to Tenant is made in lump sum or is payable to Tenant other than in equal
monthly installments, Landlord shall have a right to collect such portion of
Tenant's award as shall be sufficient to meet:

          (a)  The payments due to Landlord from Tenant under the terms of this
Lease during the period of such temporary use or occupancy and Tenant's
obligations with respect to such payments shall abate to the extent of the
receipt of such portion of the award by Landlord; and

                                       23
<PAGE>
          (b)  The estimated cost of Restoration of the demised premise after
such taking if for a period not extending beyond the expiration date of the term
of this Lease, which amount shall be made available to Tenant when and if during
the term of this Lease Tenant shall have restored the same as nearly as may be
reasonably possible to the condition in which the demised premises were
immediately prior to such taking.

     6.   SPECIAL CLAUSE FOR TENANT
          -------------------------

     Nothing contained in this Lease shall be deemed a waiver by Tenant of its
right to present a claim in the condemnation proceedings for loss of business
profits, loss of good will, and moving expenses, and these items shall be
compensable as subsequently determined by settlement or after trial as long as
the ultimate compensability of these items to the Tenant does not diminish any
award to the Landlord.  Anything hereinbefore to the contrary notwithstanding,
there shall be no reduction of the rent nor shall Tenant have any right to elect
that the term hereby granted shall expire because of the acquisition of
underground rights of way not permanently transferred with the possession of any
structure erected on the demised premises, the land thereunder or the basement
space thereunder.
                                   ARTICLE XIV

                               DEFAULT PROVISIONS
                               ------------------

     If, during the term of this Lease, default shall be made in the due and
punctual payment of any rent or any additional rent or Impositions payable under
this Lease, when and as the same shall become due and payable, and such default
shall continue for a period of thirty (30) days after written notice, or if
default by the Tenant shall be made in the performance or compliance with any of
the covenants, agreements, terms or conditions contained in this Lease other
than those referred to above in this paragraph and such default shall continue
for a period of thirty (30) days after written notice thereof from the Landlord
to Tenant, or in the case of default or

                                       24
<PAGE>
contingency which cannot with due diligence be cured within such period of
thirty (30) days the Tenant fails to proceed with all due diligence to cure the
same and thereafter to prosecute the curing of such default with all due
diligence (it being intended that in connection with a default not susceptible
of being cured with due diligence within thirty (30) days that the time of
Tenant within which to cure the same shall be extended for such period as may be
necessary to complete the same with all due diligence); or

     If the Tenant shall file a voluntary petition in bankruptcy or shall be
adjudicated a bankrupt or insolvent, or shall file any petition or answer
seeking any reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief under the present or any future federal bankruptcy
act or any other present or future applicable federal, state or other statute or
law or shall seek or consent to or acquiesce in the appointment of any trustee,
receiver or liquidator of Tenant or of all or any substantial part of its
properties or of the demised premises, or if within thirty (30) days after the
commencement of any proceeding against Tenant seeking any such reorganization,
arrangement, readjustment, liquidation, dissolution or similar relief, such
proceeding shall not have been dismissed, or if within thirty (30) days after
the appointment without the consent or acquiescence of Tenant of any Trustee,
receiver or liquidator of Tenant or all or any substantial part of its
properties or of the demised premises, such appointment shall not have been
vacated or stayed or appealed or otherwise, or if within thirty (30) days after
the expiration of any such stay, such appointment shall not have been vacated,
then and in any such of the events hereinabove set forth Landlord at any time
thereafter may give written notice to Tenant specifying any event or events of
default and stating that this Lease and the term hereby demised shall expire and
terminate on the day specified in the notice, which shall be at least ten (10)
days after the giving of such notice and upon the date

                                       25
<PAGE>
specified in such notice, this Lease and the term hereby demised and all rights
of the Tenant under this Lease shall expire and terminate and Tenant shall
remain liable as hereinafter set forth.

     Upon any such expiration or termination of this Lease due to any of the
provisions herein or any termination by summary proceedings or otherwise, Tenant
shall quit and peacefully return the demised premises and the then building
thereon to the Landlord without any payment therefor by Landlord and Landlord,
upon or at any time after any such expiration or termination, may, without
further notice, enter upon and re-enter the demised premises, possess and
repossess itself thereof by force, summary proceedings, ejectment or otherwise
and may dispossess Tenant and remove Tenant and all other persons and property
from the demised premises and may have, hold and enjoy the demised premises and
the building thereon and the right to receive all rental income of and from the
same.

     At any time or from time to time after any such expiration or termination
pursuant to the preceding paragraphs hereof, or any other termination by summary
proceedings or otherwise, Landlord shall be free to relet the demised premises
or any part thereof in the name of the Landlord or otherwise for such terms or
terms which may be greater or less than the period which would otherwise be
constituting the balance of the term of this Lease, and all such conditions,
which may include concessions of free rent, as Landlord, in its uncontrolled
discretion, may determine, and may collect and receive the rents thereof.
Landlord shall, in no way, be responsible or liable for any failure to relet the
demised premises or any part thereof or any failure to collect any rent due upon
any such reletting.

     No expiration or termination of this Lease, pursuant to any of the
paragraphs of this Article or any termination by summary proceedings or
otherwise, shall relieve Tenant of its liability and obligation under this Lease
and such liability and obligation shall survive any such

                                       26
<PAGE>
expiration or termination. In the event of any expiration or termination,
whether or not the demised premises or any part thereof have been relet, Tenant
shall pay to the Landlord the net rent and all other charges required to be paid
by Tenant to the time of such expiration or termination of this Lease, and
thereafter Tenant, until the end of what would have been the term of this Lease
in the absence of such expiration or termination, shall be liable to Landlord
for, and shall pay to Landlord, as and for liquidated and current damages for
Tenant's default, the equivalent of the amount of the rents, additional rents,
charges and Impositions which would be payable under this Lease by Tenant, if
this Lease were still in effect, less the net proceeds of any reletting effected
pursuant to the provisions of a paragraph of this Article, after deducting all
Landlord's expenses in connection with such reletting, including, without
limitation, all repossession costs, brokerage and management commissions,
operating expenses, legal fees and expenses, alteration costs and expenses of
preparation of such reletting.

     Tenant shall pay such current damages (herein called "deficiency") to
Landlord monthly on the 1st day of each month as the same would have been
payable under this Lease if this Lease were still in effect, and Landlord shall
be entitled to recover from Tenant any monthly deficiency as the same shall
arise.

     Tenant for itself and anyone having any interest in the leasehold, hereby
expressly waives, so far as permitted by law, service of any notice of intention
to re-enter provided for by statute or of the institution of legal proceedings
to that end. Tenant also waives any and all right of redemption or re-entry or
repossession or to restore the operation of this Lease in case Tenant shall be
dispossessed by a judgment or by warrant of any court or judge or in case of
re-entry or repossession by Landlord or in case of any expiration or termination
of this Lease. The terms

                                       27
<PAGE>
"enter", "re-enter", "entry", or "re-entry", as used in this Lease are not
restricted to their technical legal meaning.

     No failure by Landlord to insist upon the strict performance of any
covenant, agreement, term or condition of this Lease or to fail to exercise any
right or remedy consequent upon a breach thereof, and no acceptance of full or
partial rent during the continuation of such breach shall constitute a waiver of
any such breach of such covenant, agreement, term or condition. No covenant,
agreement, term or condition of this Lease to be performed or complied with by
either party and no breach thereof, shall be waived, altered or modified except
by a written instrument executed by the other party. No waiver or breach shall
affect or alter this Lease, but each and every covenant, agreement, term and
condition of this Lease shall continue in full force and effect with respect to
any now existing or subsequent breach thereof.

     In the event of any breach or threatened breach by Tenant of any of the
covenants, agreements, terms or conditions contained in this Lease, Landlord
shall be entitled to enjoin such breach or threatened breach and shall have the
right to invoke any right or remedy allowed at law or in equity or by statute or
otherwise, through reentry, summary proceedings and other remedies which are
provided for in this Lease.

     Each right and remedy of Landlord provided in this Article XIV shall be
cumulative and shall be in addition to (a) every other right or remedy provided
for in this Lease or now or hereafter existing at law or in equity or by statute
or otherwise, and (b) the exercise or beginning of any exercise by Landlord of
any one or more of the rights or remedies provided for in this Lease or now or
hereafter existing at law or equity or by statute or otherwise.

                                       28
<PAGE>
                                   ARTICLE XV

                                  ARBITRATION
                                  -----------

     Unless the terms of this Lease provide otherwise, in the event of any
disagreement or dispute between the parties to this Lease or their successors in
interest, or in the event of the necessity of appraisal or arbitration for any
purpose or cause whatsoever, each party agrees to appoint a fit, unbiased person
within thirty (30) days after notice in writing of the dispute and after notice
of the necessity for arbitration and to advise the other party of the choice.
On the failure of either party to appoint an arbitrator within ten (10) days
after notification of the appointment by the other party, the person appointed
as arbitrator may appoint an arbitrator to represent the party in default.  The
two arbitrators appointed in either manner above provided shall then proceed to
act and to appraise or to settle the dispute or disagreement.  In the event of
their inability to reach a result, they may agree to call in a third fit and
responsible party and in the event of such inability to agree on such a third
arbitrator, the then Presiding Justice of the Appellate Division of the Second
Department shall appoint him and on the failure of the then Presiding Justice to
act, application may be made by either arbitrator to any other Justice of the
Appellate Division in the order or seniority for the appointment of a third
arbitrator.  The Landlord and Tenant agree each to pay one-half of the expense
and reasonable fees of the arbitrators, and to be bound by their decision.

     In cases where the matter arbitrated consists of the appraisal or valuation
of the premises, the arbitrators shall each be real estate appraisers who shall
meet the qualifications set forth in Article XXIX(h) and (i) hereof.

                                       29
<PAGE>
                                   ARTICLE XVI

                        ASSIGNMENT; MORTGAGE; SUBLETTING
                        --------------------------------

     Tenant shall not sublet the premises nor any part thereof, nor assign,
mortgage or otherwise encumber or dispose of this Lease or any interest therein,
nor grant concessions or licenses for the occupancy of the premises, or any part
thereof, without Landlord's prior written consent in each of the foregoing
cases, except that Tenant shall have the right to sublet the demised premises or
assign this Lease if the sublessee or assignee is a corporation which is an
affiliate or wholly-owned subsidiary of Tenant, or which may, as a result of a
reorganization, merger or consolidation, succeed to the entire business carried
on by Tenant at such time, provided the following conditions are complied with:

          (a)  The assignment and/or subletting must be, respectively, of all of
Tenant's leasehold interest and of the entire premises and, in the case of an
assignment, shall also transfer to the assignee all of the Tenant's right in,
and interest under, this Lease including the security, if any, deposited
hereunder.

          (b)  At the time of such assignment and/or subletting, this Lease must
be in full force and effect without any breach or default thereunder beyond
applicable notice and cure periods on the part of the Tenant.

          (c)  The assignee or sublessee shall assume, by written recordable
instrument, in form and consent satisfactory to Landlord, the due performance of
all of Tenant's obligations under this Lease, including any accrued obligations,
at the time of the assignment or subletting.

          (d)  A copy of the assignment or sublease and the original assumption
agreement (both in form and content satisfactory to the Landlord) fully executed
and acknowledged by the assignee and/or sublessee together with a certified copy
of a properly

                                       30
<PAGE>
executed corporate resolution authorizing such assumption agreement, shall be
mailed to the Landlord within ten (10) days from the effective date of such
assignment or subletting.

          (e)  Such assignment and/or subletting shall be upon and subject to
all the provisions, terms, covenants and conditions of this Lease, and the
Tenant (and any assignee(s) and sublessee(s)), shall continue to be and remain
liable thereunder.

     Notwithstanding anything contained in this Lease to the contrary, and
notwithstanding any consent by Landlord to any sublease of the demised premises,
no subtenant shall assign its sublease nor further sublease the premises without
Landlord's prior written consent in each of such cases.

     Tenant's failure to comply with all of the provisions and conditions of
this Article XVI and all of the subsections hereof shall, at Landlord's option,
render any purported assignment or subletting null and void and of no force and
effect, and constitute a breach of this Lease by Tenant.

     If there shall occur any changes in the ownership of and/or power to vote
the majority of the outstanding capital stock of Tenant without the prior
written consent of Landlord, then Landlord shall have the option to terminate
this Lease upon at least thirty (30) days' notice to Tenant.

                                  ARTICLE XVII

                              MORTGAGE OF THE FEE
                              -------------------

     The Tenant accepts this Lease subject and subordinate to any institutional
mortgage or mortgages which may at any time hereafter be or become a lien or
liens upon the land, building and improvements constituting the demised
premises; provided, however, that any such mortgage shall contain a provision
          --------  -------
requiring the mortgagee to notify Tenant, as well as the Landlord, of any
defaults thereunder, and permitting the Tenant to make payment of such

                                       31
<PAGE>
mortgage payments on behalf of the Landlord mortgagor. Any payments so made by
the Tenant shall be deducted from the rents set forth herein. The Tenant shall
execute, at any time hereafter, on demand, any instruments, releases or other
documents that may be required by any mortgagee or mortgagor for the purpose of
subjecting and subordinating this Lease to the lien of any such mortgagee or
mortgages, and the failure of the Tenant to execute any such instruments,
releases or documents, shall constitute a default hereunder. Notwithstanding
anything to the contrary contained in this Lease, including, without limitation,
the provisions of this Article XVII, this Lease shall be subject and subordinate
to the lien of the Mortgage, dated as of February 9, 1989, between Landlord and
Citibank, N.A., as successor-in-interest to European American Bank and any and
all rights, including rights of notice, in favor of Citibank, N.A., contained in
such Mortgage.
                                  ARTICLE XVIII

                                 QUIET ENJOYMENT
                                 ---------------

     The Landlord covenants and agrees that the Tenant, upon paying the rents,
additional rents, and all other charges and Impositions herein provided for and
observing and keeping the covenants, agreements and conditions of this Lease on
its part to be kept, shall lawfully and quietly hold, occupy and enjoy said
demise premises during the term of this Lease, without hindrance or molestation
of the Landlord, or any person or persons claiming under the Landlord.

                                   ARTICLE XIX

                              ESTOPPEL CERTIFICATE
                              --------------------

     The Tenant agrees at any time and from time to time upon not less than
twenty (20) days prior written request by the Landlord to execute, acknowledge
and deliver to the Landlord and the Landlord agrees at any time and from time to
time upon not less than twenty (20) days' prior written request by the Tenant,
to execute, acknowledge and deliver to the Tenant, a statement in

                                       32
<PAGE>
writing certifying that this Lease is unmodified and in full force and effect
(or if there have been modifications that the same is in full force and effect
as modified and stating the modifications) and the dates to which rents,
additional rents and other charges and Impositions have been paid in advance, if
any, and whether or not there is any existing default by the Tenant or notice of
default served by the Landlord, it being intended that any such statement
delivered pursuant to this Article may be relied upon by any prospective
purchaser of the fee or leasehold or mortgagee or assignee of any mortgage upon
the fee of the demised premises or any prospective assignee of the leasehold
estate.

                                   ARTICLE XX

                                    NOTICES
                                    -------

     Any notice or demand which, under the terms of this Lease or under any
statute, must or may be given or made by the parties hereto, shall be in
writing, and may be given or made by (a) mailing the same by registered mail
return receipt requested, (b) personal delivery of the same against a signed
receipt, or (c) sending the same by nationally recognized overnight courier
service, addressed to the other party at the address hereinabove mentioned.
Either party, however, may designate in writing such new or other address to
which such notice or demand shall thereafter be so given, made or mailed.  Any
notice given hereunder by mail shall be deemed delivered when deposited in a
United States general or branch post office, enclosed in a registered, prepaid
wrapper addressed as hereinbefore provided; any notice given by personal
delivery shall be deemed given upon receipt; and any notice given by overnight
courier service shall be deemed given when deposited with the courier.

                                       33
<PAGE>
                                   ARTICLE XXI

                              SURRENDER OF PREMISES
                              ---------------------

     On the last day of the term demised, or on the sooner termination thereof,
the Tenant shall peaceably and quietly leave, surrender and yield up unto the
Landlord the demised premises, broom-clean, in good order and repair, taking
into consideration the age of the building at expiration of the term hereof, and
except for reasonable wear and tear between the last necessary repair,
replacement or restoration made by the Tenant pursuant to its obligations
hereunder, together with all alterations, additions and improvements which may
have been made upon the premises, except moveable furniture or moveable trade
fixtures put in at the expense of the Tenant.  If the last day of the term of
this Lease falls on Saturday or Sunday, this Lease shall expire on the business
day immediately preceding it.  The Tenant, on or before said date, shall remove
property from the demised premises, and all property not so removed shall be
deemed abandoned by the Tenant.  If said premises be not surrendered at the end
of the term or renewal term, Tenant shall pay to Landlord, as use and occupancy
for each month or fraction thereof, which Tenant continues to occupy the demised
premises an amount equal to (i) one hundred twenty-five percent (125%) for the
first thirty (30) days after the Expiration Date, and (ii) one hundred fifty
percent (150%) thereafter, of the annual net rental payable during the last year
of the term, unless Landlord and Tenant shall otherwise agree in writing.

                                  ARTICLE XXII

                                    RE-ENTRY
                                    --------

     In the event that this Lease shall be terminated as hereinbefore provided,
or by summary proceedings or otherwise, or in the event that the demised
premises shall be abandoned by the Tenant, or become vacant during the said
term, the Landlord, or its agents, servants or representatives, may, immediately
or any time thereafter, re-enter and resume possession of said

                                       34
<PAGE>
premises, and remove all persons and property therefrom, either by summary
dispossession proceedings or by a suitable action or proceeding in law, or by
force or otherwise, without being liable for any damages therefrom. No re-entry
by the Landlord shall be deemed an acceptance of a surrender of this Lease.

                                  ARTICLE XXIII

                CUMULATIVE REMEDIES - NO WAIVER - NO ORAL CHANGE
                ------------------------------------------------

     The specified remedies to which the Landlord may resort under the terms of
this Lease are cumulative and are not intended to be exclusive of any other
remedies or means of redress to which the Landlord may be lawfully entitled in
case of any breach or threatened breach by the Tenant of any provision of this
Lease.  The receipt of rent by the Landlord, with knowledge of any breath of
this Lease by the Tenant or of any default on the part of the Tenant in the
observance or performance of any of the conditions, covenants or provisions of
this Lease, shall not be deemed to be a waiver of any provision of this Lease.
If the Tenant should make any payment of any amount less than that due
hereunder, the Landlord without notice may accept the same as a payment on
account; the Landlord shall not be bound by any notation on any check involving
such payment nor any statement in any accompanying letter.  No failure on the
part of the Landlord to enforce any covenant or provision herein contained, nor
any waiver of any right thereunder by the Landlord, unless in writing, shall
discharge or invalidate such condition, covenant or provision or affect the
right of the Landlord to enforce the same in the event of any subsequent breach
or default.  The receipt by the Landlord of any rent or other sum of money or
other consideration hereunder paid by the Tenant after the termination, in any
manner, of the term herein demised, or after the giving by the Landlord of any
notice hereunder to effect such termination, shall not reinstate, continue or
extend the term herein demised, or destroy, or in any manner impair the efficacy
of any such notice of termination as may have been given hereunder

                                       35
<PAGE>
by the Landlord to the tenant prior to the receipt of any such sum of money or
other consideration, unless so agreed to in writing and signed by the Landlord.
Neither acceptance of the keys nor any other act or thing done by the Landlord
or any agent or employee during the term herein demised shall be deemed to be an
acceptance of a surrender of said premises, excepting only an agreement in
writing signed by the Landlord accepting or agreeing to accept such a surrender.
Any right herein granted to the Landlord to terminate this Lease shall apply to
any extension of the term herein demised, and any renewal or renewals thereof
and the exercise of any such right during the term herein demised, extended or
renewed shall terminate any extension or renewal of the term herein demised and
any right on the part of the Tenant thereto. No act or conduct of any nature or
character on the part of the Landlord or its agents, servants or employees other
than by an agreement in writing signed by the Landlord shall be construed as a
waiver of the provisions of this Article XXIII irrespective of any circumstances
existing at the time of such act or conduct.

     This instrument contains all the agreements and conditions made between the
parties hereto and may not be modified, changed or terminated in whole or in
part orally or in any other manner than by an agreement in writing, signed by
all the parties hereto or their respective successors in interest.

                                  ARTICLE XXIV

                                 EFFECT OF SALE
                                 --------------

     The term "Landlord", as used in this Lease, means only the owner for the
time being of the land, building and improvements containing the demised
premises, so that in the event of any sale of said land, building and
improvements the Landlord shall be and hereby is entirely freed and relieved of
all covenants and obligations of the Landlord hereunder, and it shall be deemed
and construed without further agreement between the parties or between the
parties and the

                                       36
<PAGE>
purchaser at any such sale, that the purchaser has assumed and agreed to carry
out any and all covenants and obligations of the Landlord hereunder.

                                   ARTICLE XXV

                                    CAPTIONS
                                    --------

     The Article captions of this Lease are for convenience and reference only
and in no way define, limit or describe the scope of interest of this Lease nor
in any way affect this Lease.

                                  ARTICLE XXVI

                COVENANTS TO BIND AND BENEFIT RESPECTIVE PARTIES
                ------------------------------------------------

     It is understood and agreed that all the covenants, agreements, terms,
conditions, provisions and undertakings in this Lease contained, shall extend to
and be binding upon the heirs, executors, administrators, successors and assigns
of the respective parties hereto, the same as if they were in every case named
and expressed, and wherever in this Lease reference is made to either of the
parties hereto, it shall be held to include and apply also (whenever and
wherever applicable) to the heirs, executors, administrators, successors and
assigns of such party.

                                  ARTICLE XXVII

                          EXECUTION OF SHORT FORM LEASE
                          -----------------------------

     The parties will at any time at the request of either one promptly execute
duplicate originals of an instrument, in recordable form, which will constitute
a short form of this Lease, setting forth a description of the premises, the
terms of this Lease and any other portions thereof, excepting the rental
provisions, as either party may request.  If the precise date of commencement
and termination of the term of this Lease are not known at the time of execution
of said short form of lease, the parties will, as soon as they are known and at
the request of either party, execute a supplemental instrument, in recordable
form, setting forth the exact date of commencement and termination of the term.

                                       37
<PAGE>
                                 ARTICLE XXVIII

                                RENEWAL OPTIONS
                                ---------------

     1.   Tenant shall have the options to renew or extend the term of this
Lease ("Renewal Options") for four five-year renewal or extended terms (each a
"Renewal Term" and, collectively, the "Renewal Terms"), the first to commence on
September 1, 2007 and to end on August 31, 2012 (the "First Renewal Term"); the
second to commence on September 1, 2012 and to end on August 31, 2017 (the
"Second Renewal Term"); the third to commence on September 1, 2017 and to end on
August 31, 2022 (the "Third Renewal Term") and the fourth to commence on
September 1, 2022 and to end on August 31, 2027 (the "Fourth Renewal Term").
Each Renewal Term shall be upon the same terms, covenants and conditions as set
forth herein for the term expiring on August 31, 2007 except that:

          (a)  any terms, covenants or conditions hereof that are expressly or
by their nature inapplicable to the Renewal Terms shall not apply during the
Renewal Terms;

          (b)  the annual net rental payable by Tenant during each Renewal Term
(hereinafter referred to as the "Renewal Rent") shall be an amount equal to the
greater of (i) the amount of annual net rental payable by the Tenant during the
calendar year 2006 if the first Renewal Term commences, the calendar year 2011
if the Second Renewal Term commences, the calendar year 2016 if the Third
Renewal Term commences and the calendar year 2021 if the Fourth Renewal Term
commences, and (ii) the fair market rental value of the demised premises to be
determined jointly by Landlord and Tenant subject to the provisions of Section 3
hereof and to be calculated as of the commencement date of each of the
applicable Renewal Terms on the basis of a new five year letting of the demised
premises.  Any determination of fair market rental of the demised premises shall
be based upon the use of the building by Tenant and all

                                       38
<PAGE>
specialized improvements relating thereto, and not solely upon the market rental
for general commercial space in the area.

     2.   Each of the Renewal Options shall be exercised by Tenant's giving
notice of the exercise thereof no later than February 28, 2007 with respect to
the Renewal Option for the first Renewal Term, February 28, 2012 with respect to
the Renewal Option for the Second Renewal Term, February 28, 2017 with respect
to the Renewal Option for the Third Renewal Term and February 28, 2022 with
respect to the Renewal Option for the Fourth Renewal Term, time being of the
essence; provided, however, that Tenant shall not be entitled to exercise the
Renewal Option for any Renewal Term unless (a) at the time of the exercise
thereof and on the day immediately preceding the beginning of such Renewal Term
this Lease shall be in full force and effect without default beyond applicable
grace periods on the part of Tenant, and (b) with respect to the Second Renewal
Term, Third Renewal Term and Fourth Renewal Term Tenant shall have exercised its
Renewal Option for the immediately preceding Renewal Term.

     3.   In the event that Tenant shall exercise the applicable Renewal Option
as provided in Section 2 hereof, the Renewal Rent shall be determined jointly by
Landlord and Tenant, and such determination shall be confirmed in a writing
(hereinafter referred to as a "Rental Agreement") to be executed by Landlord and
Tenant not later than the day (hereinafter referred to as the "Determination
Date") which shall be ninety (90) days next preceding the commencement of the
applicable Renewal Term. In the event that Landlord and Tenant shall have failed
to join in executing a Rental Agreement on or before the Determination Date
because of their failure to agree upon the Renewal Rent, the Renewal Rent shall
then be determined by arbitration as follows:

                                       39
<PAGE>
          (a)  Landlord and Tenant shall each appoint an arbitrator by written
notice given to the other party hereto not later than thirty (30) days after the
Determination Date.  If either Landlord or Tenant shall have failed to appoint
an arbitrator within such period of time and thereafter shall have failed to do
so by written notice given within a period of five (5) days after notice by the
other party requesting the appointment of such arbitrator, then such arbitrator
shall be appointed by the American Arbitration Association or its successor (by
the branch office of which is located closest to the demised premises), upon
request of either Landlord or Tenant, as the case may be.

          (b)  The two (2) arbitrators appointed as above provided shall appoint
a third (3rd) arbitrator by written notice given to both Landlord and Tenant,
and, if they fail to do so by written notice given within thirty (30) days after
their appointment, such third (3rd) arbitrator shall be appointed as above
provided for the appointment of an arbitrator in the event either party fails to
do so.

          (c)  All of such arbitrators shall be real estate appraisers having
not less than ten (10) years experience in appraising the fair market rental
value of real estate similar in kind and location to the demised premises and
whose appraisals are acceptable to savings banks or life insurance companies
doing business in the State of New York.

          (d)  Each arbitrator shall certify to Landlord and Tenant whether or
not, in the previous three (3) years, the arbitrator or his or her company have
(x) been retained by Landlord or Tenant and/or (y) been involved in an
adversarial arbitration or litigation proceeding with either Landlord or Tenant.
Landlord and Tenant reserve the right to reject any arbitrator for good cause
within ten (10) business days after receipt of the certification provided above.

                                       40
<PAGE>
          (e)  The three arbitrators, selected as aforesaid, forthwith shall
convene and render their decision in accordance with the then applicable rules
of the American Arbitration Association or its successor, which decision shall
be strictly limited to a determination of the Renewal Rent as the case may be,
within twenty (20) days after the appointment of the third (3rd) arbitrator. The
decision of such arbitrators shall be in writing and the vote of the majority of
them shall be the decision of all and, insofar as the same is in compliance with
the provisions and conditions of this Section 3, shall be binding upon Landlord
and Tenant. Duplicate original counterparts of such decision shall be sent
forthwith by the arbitrators by certified mail, return receipt requested, to
both Landlord and Tenant. The arbitrators, in arriving at their decision, shall
take into account the use of the demised premises by Tenant and all specialized
improvements relating thereto, and be entitled to consider all testimony and
documentary evidence that may be presented at any hearing, as well as facts and
data which the arbitrators may discover by investigation and inquiry outside
such hearings. If, for any reason whatsoever, including, without limitation,
failure of the three arbitrators to render a majority vote, a written decision
of the arbitrators shall not be rendered within thirty (30) days after the
appointment of the third (3rd) arbitrator, then, at any time thereafter before
such decision shall have been rendered, either party may apply to the Supreme
Court of the State of New York or to any other court having jurisdiction and
exercising the functions similar to those now exercised by such court, by
action, proceeding or otherwise (but not by a new arbitration proceeding) as may
be proper, to determine the question in dispute consistently with the provisions
of this Lease. The cost and expense of such arbitration, proceeding or other
action shall be borne equally by Landlord and Tenant.

                                       41
<PAGE>
     4.   In the event that Tenant shall exercise a Renewal Option as provided
in Section 2 hereof and the Renewal Rent shall not be finally determined
pursuant to the terms of Section 3 hereof on or before the applicable
commencement date of any Renewal Term, then:

          (a)  The annual net rental payable by Tenant during the Renewal Term
until the Renewal Rent shall be so finally determined shall, subject to
adjustment as provided in Article III hereof, be equal to the annual net rental
payable by Tenant during the calendar year immediately preceding the applicable
Renewal Term; and

          (b)  In the event that the Renewal Rent as finally determined pursuant
to the terms of Section 3 hereof, shall be greater than the such calendar year's
annual net rent (i) the annual net rental payable by Tenant for the balance of
the applicable Renewal Term shall be and become the Renewal Rent as finally
determined, and (ii) Tenant shall forthwith pay to Landlord an amount equal to
the difference between (x) the sum of the actual rental payments paid to
Landlord during the Renewal Term before such final determination, and (y) the
sum of the rental payments that Tenant would have paid to Landlord if the
Renewal Rent were finally determined prior to the commencement date of the
applicable Renewal Term.

                                  ARTICLE XXIX

                               OPTION TO PURCHASE
                               ------------------

          (a)  Tenant shall have the one time option (subject to the provisions
of Article XXX) to purchase the demised premises for its fair market value (the
"Purchase Option") provided that:
 ---------------

          (i)  At the time of the exercise thereof and on the date of such
               purchase (the "Closing Date") this Lease shall be in full force
                              ------------
               and effect without default beyond applicable grace periods on the
               part of Tenant;

                                       42
<PAGE>
          (ii) Tenant shall give Landlord written notice (the "Option Notice")
               of its election to exercise the Purchase Option not later than
               one (1) year prior to the expiration of the term of this Lease or
               any then operative Renewal Term, time being of the essence; and

          (iii) Tenant shall, as of the date of the Option Notice and the
               Closing Date, be in actual occupancy of an amount of space equal
               to at least ninety percent (90%) of the demised premises.

          (b)  The purchase price for the demised premises payable by Tenant to
Landlord shall be either:

          (i)  an amount equal to the "Fair Market Value" (as defined and
                                       -----------------
               determined in this Article XXIX), which determination shall be as
               of the date of the Option Notice; or

          (ii) the price determined and submitted with the Option Notice (the
               "Price Determination Notice"). If Landlord shall dispute Tenant's
                --------------------------
               determination of such price and shall be unable to resolve such
               dispute with Tenant, then Landlord shall initiate the arbitration
               process provided for herein by designating its arbitrator in a
               notice (the "Landlord's Arbitration Notice") to Tenant (which
                            -----------------------------
               notice must specify the name, address and telephone number of the
               person designated to act as an arbitrator on its behalf) given to
               Tenant no later than thirty (30) days after Tenant shall have
               delivered the Price Determination Notice. The determination of
               the Fair Market Value of the demised premises shall then be made
               in accordance with the provisions of subsection (c) hereof. If
                                                    --------------
               Landlord fails to deliver the

                                       43
<PAGE>
               Arbitration Notice as provided above, then Tenant's determination
               of the purchase price in the Price Determination Notice shall be
               final and conclusive.

          (c)  "Fair Market Value" shall mean the fair market value of the
demised premises based upon the following factors:

          (i)  that Landlord and Tenant are typically motivated;

          (ii) that Landlord and Tenant are well informed and well advised and
               each is acting in what it considers its own best interest;

         (iii) that a reasonable time under then existing market conditions is
               allowed for exposure of the demised premises on the open market;

          (iv) that in the event the demised premises or any portion thereof
               have been destroyed or damaged by fire or other casualty, such
               damage has been fully restored;

          (v)  that Tenant will incur no moving or storage costs;

          (vi) that Tenant will incur no holdover or termination charges with
               respect to any existing leases;

         (vii) that market rents then being charged for comparable space in
               other similar office buildings are being charged at the demised
               premises;

        (viii) that the demised premises is considered free and clear of this
               Lease;

          (ix) that the demised premises is being purchased in "as is" condition
               and Landlord is not obligated to perform any work or make any
               improvements of any kind whatsoever; and

                                       44
<PAGE>
          (x)  that the demised premises is being sold "subject to" those
               matters of record existing on the date hereof, other than
               mortgages, and those matters of record created by or resulting
               from the acts of Tenant.

          (d)  Within thirty (30) days after Tenant's receipt of Landlord's
Arbitration Notice, Tenant shall give notice to Landlord specifying the name,
address and telephone number of the person designated to act as an arbitrator on
Tenant's behalf ("Tenant's Arbitration Notice").  If Tenant fails to deliver the
Tenant's Arbitration Notice within the time above specified, then Landlord shall
provide an additional notice to Tenant requiring Tenant's appointment of an
arbitrator within fifteen (15) days after Tenant's receipt thereof.  If Tenant
fails to deliver the Tenant's Arbitration Notice within such fifteen (15) day
period, then Tenant's arbitrator shall be appointed in the same manner as if
both arbitrators cannot agree on the appointment of a third arbitrator as set
forth in subsection (f) below.

          (e)  If Tenant designates an arbitrator within the time period
specified above, the two arbitrators so chosen shall meet within thirty (30)
days after Landlord's arbitrator is appointed, and shall exchange sealed
envelopes each containing such arbitrator's written determination of the Fair
Market Value. Neither arbitrator shall be bound by nor shall either arbitrator
make any reference to the determination of the Purchase Price which was
previously furnished by Tenant to Landlord. The Fair Market Value specified by
Landlord's arbitrator shall herein be called "Landlord's Submitted Value" and
the Fair Market Rent specified by Tenant's arbitrator shall herein be called
"Tenant's Submitted Value". Copies of such written determinations shall promptly
be sent to both Landlord and Tenant. Any failure of either such arbitrator to
exchange such determinations shall be deemed acceptance of the other party's

                                       45
<PAGE>
arbitrator's determination as the Fair Market Value, if, and only if, such
failure persists for ten (10) days after notice to the party for whom such
arbitrator is acting.

          (f)  If the higher determination of Fair Market Value for the demised
premises is not more than 105% of the lower determination of such Fair Market
Value, then the Fair Market Value for the demised premises shall be deemed to be
the average of the two determinations.  If, however, the higher determination is
more than 105% of the lower determination, then within ten (10) days after the
date the arbitrators submitted their respective fair market rent determinations,
the two arbitrators shall together appoint a third arbitrator.  In the event of
their being unable to agree upon such appointment within thirty (30) days after
the submission of the respective arbitrators' determinations to Landlord and
Tenant, the third arbitrator shall be selected by the parties themselves within
a further period of fifteen (15) days.  If the parties do not so agree, then
either party, on behalf of both and on notice to the other, may request such
appointment of an arbitrator meeting the requirements set forth in subsection
(h) below by the branch office of the American Arbitration Association which is
located closest to the demised premises or, if it does not then exist, such
successor organization as may then exist.  Such third arbitrator shall, within
thirty (30) days after his appointment, make his own determination of the Fair
Market Value and send copies of this determination promptly to both Landlord and
Tenant and their arbitrators.  Whichever of Landlord's Submitted Value or
Tenant's Submitted Value shall be closer to the determination of such third
arbitrator shall be averaged with the amount of the determination of the third
arbitrator and the result will conclusively be deemed to be the Fair Market
Value.

          (g)  Each party shall pay the fees and expenses of the arbitrator
appointed by or for such party, and the fees and expenses of the third
arbitrator and all other expenses (not

                                       46
<PAGE>
including the attorneys' fees, witness fees and similar expenses of the parties,
which shall be borne separately by each of the parties) of the arbitration shall
be borne by the parties equally.

          (h)  All of such arbitrators shall be real estate appraisers having
not less than ten (10) years experience in appraising the fair market value of
real estate similar in kind and location to the demised premises and whose
appraisals are acceptable to savings banks or life insurance companies doing
business in the State of New York.

          (i)  Each arbitrator shall certify to Landlord and Tenant whether or
not, in the previous three (3) years, the arbitrator or his or her company have
(x) been retained by Landlord or Tenant, and/or (y) been involved in an
adversarial arbitration or litigation proceeding with either Landlord or Tenant.
Landlord and Tenant reserve the right to reject any arbitrator for good cause
within ten (10) business days after receipt of the certification provided above.

          (j)  The arbitration shall be conducted, to the extent consistent with
this Article XXIX, in accordance with the then prevailing rules of the American
Arbitration Association (other than the American Arbitration Association rules
relating to the appointment of arbitrators), or such other procedures as are
agreed to by the arbitrators or the parties hereto. In rendering such decision
and award, the arbitrators shall not add to, subtract from or otherwise modify
the provisions of this Lease. Judgment may be had on the decision and award of
the arbitrator(s) so rendered in any court of competent jurisdiction.

          (k)  In the event the arbitration process is continuing at the end of
the term of this Lease or any Renewal Term, Tenant may remain in possession
until the Closing Date at the same rental being charged by Landlord in the last
month of the term of this Lease or any Renewal Term as applicable.

                                       47
<PAGE>
          (l)  Within thirty (30) days after the determination of the purchase
price for the demised premises, Landlord and Tenant shall diligently and in good
faith negotiate and execute a formal contract of sale for the demised premises.
If Landlord and Tenant do not succeed in so negotiating and executing such
formal contract of sale within such thirty (30) day period, the Purchase Option
shall then and thereupon be extinguished. Time is and shall be of the essence
with respect to all of the time periods set forth in this Article XXIX.

          (m)  Landlord shall not be deemed to have failed to negotiate such
formal contract of sale in good faith by requiring, among other things, (a) that
the purchase price be paid by wire transfer or good certified or cashier's
check, (b) that Tenant take title to the demised premises in "as is" condition
and "subject to" those matters of record existing on the date of such contract,
other than mortgages, and (c) that Tenant deposit in escrow with Landlord's
counsel a down payment equal to ten (10%) percent of the sales price forfeitable
as liquidated damages in the event of Tenant's default under such contract of
sale.

          (n)  The Closing Date shall occur on a business date fixed by Tenant
which is prior to the 45th day following the determination of the purchase price
for the demised premises.

          (o)  Neither the Purchase Option nor a memorandum thereof shall be
recorded against the demised premises.

                                   ARTICLE XXX

                              RIGHT OF FIRST OFFER
                              --------------------

          (a)  Provided (i) that this Lease shall then be in full force and
effect without default beyond applicable grace periods on the part of Tenant,
(ii) that Tenant has not exercised the Purchase Option or, if Tenant has
exercised the Purchase Option, has not, acting diligently and in good faith,
executed a formal contract of sale for the demised premises as provided in
subsection (l) of Article XXIX hereof, and (iii) that the demised premises are
for sale, Landlord

                                       48
<PAGE>
shall first give to Tenant notice of Landlord's willingness to sell the demised
premises to Tenant for the sales price set forth in such notice (the "Price
Notice").  Such sales price shall be the Fair Market Value of the demised
premises as of the date of the Price Notice determined, absent agreement thereon
by Landlord and Tenant, in accordance with the arbitration procedures set forth
in Article XXIX.  Tenant shall have fifteen (15) days after such agreement on or
determination of the sales price to agree to purchase the demised premises for
such price or to reject the Price Notice.  If Tenant does not notify Landlord in
writing of Tenant's agreement to purchase the demised premises for such sales
price within such 15-day period, the Price Notice shall be deemed rejected.  If
Tenant rejects or is deemed to have rejected the Price Notice, (A) Landlord
shall be free to sell the demised premises to any other person or entity at any
time for such Fair Market Value or for any higher price and on such commercially
comparable terms as may have been set forth in the Price Notice, and (B) the
Purchase Option shall be deemed to have been cancelled and revoked (subject to
reinstatement if the demised premises are not so sold within 180 days of the
rejection or deemed rejection of the Price Notice).  If Landlord is offered a
price for the demised premises lower than such Fair Market Value which Landlord
is willing to accept, Landlord shall not accept such offer unless Landlord again
offers the demised premises to Tenant for such lower price by Price Notice as
provided herein.  Tenant shall have fifteen (15) days after receipt of such
Price Notice to agree to purchase the demised premises for such lower price or
to reject such Price Notice.  If Tenant does not notify Landlord in writing of
Tenant's agreement to purchase the demised premises for such lower price within
such 15-day period, such Price Notice shall be deemed rejected.  If Tenant
rejects or is deemed to have rejected such Price Notice, (1) Landlord shall
thereafter be free to sell the demised premises to any other person or entity
for such price (or any higher price) and on any terms and (2) the

                                       49
<PAGE>
Purchase Option shall be deemed to have been cancelled and revoked (subject to
reinstatement of the demised premises are not sold within one hundred eighty
(180) days of such rejection or deemed rejection of the Price Notice). In the
event Tenant agrees to purchase the demised premises as provided herein,
Landlord and Tenant shall diligently and in good faith negotiate and execute a
formal contract of sale for the demised premises within thirty (30) business
days after such agreement is given to Tenant. If Landlord and Tenant do not
succeed in so negotiating and executing such formal contract of sale within such
thirty (30) day period, this limited right of first offer shall then and
thereupon be extinguished. TIME IS AND SHALL BE OF THE ESSENCE with respect to
all of the time periods set forth in this subsection (a). This subsection (a)
shall apply successively to each instance in which Landlord is offered and/or is
willing to accept a price for the demised premises lower than the price set
forth in the previous Price Notice.

          (b)  Landlord shall not be deemed to have failed to negotiate such
formal contract of sale in good faith by requiring, among other things, (a) that
the purchase price be paid by wire transfer or good certified or cashier's
check, (b) that Tenant take title to the demised premises in "as is" condition
and "subject to" those matters of record existing on the date of such contract,
other than mortgages, and (c) that Tenant deposit in escrow with Landlord's
counsel a down payment equal to ten (10%) percent of the sales price forfeitable
as liquidated damages in the event of Tenant's default under such contract of
sale.

          (c)  The closing of the purchase of the demised premises by Tenant
shall occur on a business date fixed by Tenant which is prior to the ninetieth
(90th) day following the giving by Landlord of the operative Price Notice.

                                       50
<PAGE>
          (d)  Neither this limited right of first offer nor a memorandum hereof
shall be recorded against the demised premises.

     IN WITNESS WHEREOF, each of the Landlord and the Tenant has caused this
Lease to be executed by its authorized officers and caused its corporate seal to
be hereto affixed as of this 1st day of September 2002.

                                         Tenant:

                                         AMERICAN TECHNICAL CERAMICS CORP.

                                         By:
                                             -------------------------------
                                             Name:
                                             Title:

                                         Landlord:

                                         STEPAR LEASING, LLC

                                         By:
                                             -------------------------------
                                             Name:
                                             Title:

                                       51
<PAGE>
                                    EXHIBIT A
                                    ---------

                            REAL PROPERTY DESCRIPTION
                            -------------------------

     The real property known as 15 Stepar Place, Huntington Station, NY  11746,
and all buildings and improvements thereon.

<PAGE>EIGHTH AMENDMENT TO LOAN AGREEMENT

     This Eighth Amendment To Loan Agreement ("Amendment") effective as of April
12,  2002 (the "Amendment Effective Date") is made and entered into by and among
Boots  &  Coots  International  Well  Control, Inc., a Delaware corporation (the
"Borrower");  the  financial institutions and other persons (each, together with
its  successors  and  assigns,  a "Lender" and collectively, the "Lenders") from
time  to  time  a  party  to  the  Loan  Agreement (as hereinafter defined), and
Specialty  Finance  Fund  I,  LLC,  a  Delaware  limited  liability  company
("Specialty"),  as successor to Comerica Bank-Texas, a Texas banking association
("Comerica"),  as  agent  for  the  Lenders (in such capacity, together with its
successors  in  such  capacity,  the  "Agent").

                                    RECITALS:

     Whereas,  the  Borrower,  the  Lenders, and the Agent are parties to a Loan
Agreement  dated  as  of  October  28,  1998,  as amended from time to time, (as
amended,  the  "Loan  Agreement");

     Whereas,  Effective  of even date herewith, Specialty, in its capacity as a
Lender,  has  assigned  a participation interest in and to the Loan Agreement to
Charles  Parker,  who  pursuant  to  such  Assignment is a Lender under the Loan
Agreement;  and

     Whereas,  the Borrower, the Lenders and the Agent have agreed, on the terms
and  conditions  herein set forth, that the Loan Agreement be amended in certain
respects;

     Now,  Therefore,  For Good and valuable consideration, including the mutual
agreements of the parties hereto, the receipt and sufficiency of which is hereby
acknowledged,  it  is  agreed  as  follows:

     Section  1.     Definitions.  Terms  used  herein  which are defined in the
Loan  Agreement  shall  have the same meanings when used herein unless otherwise
provided  herein.

     Section  2.     Amendments  to Section 1.1 of Loan Agreement.  On and after
the  Amendment  Effective  Date, the Loan Agreement shall be amended as follows:

          (a) The definition of "Borrowing Base" set forth in Section 1.1 of the
     Loan  Agreement  is  hereby  amended  to  read  in its entirety as follows:

          "Borrowing  Base"  means,  as at any date, the amount of the Borrowing
           ---------------
     Base  as  established  by  the  Lenders  from  time  to  time in their sole
     discretion  and until further notice by Lenders to Borrower, for the period
     from  the  Amendment  Effective  Date  through the Borrowing Base Reduction
     Date,  the Borrowing Base is hereby established to be $1,750,000.00 and for
     the  period  after Borrowing Base Reduction Date through the Maturity Date,
     the  Borrowing  Base  is  hereby  established  to  be  $1,000,000.00.

<PAGE>
          (b)  The definition of "Maturity Date" set forth in Section 1.1 of the
     Loan  Agreement  is  hereby  amended  to  read  in its entirety as follows:

     "Maturity  Date"  means  the  maturity  of the Revolving Notes, October 31,
      --------------
2003."

          (c)  The  definition  of "Maximum Revolving Loan Available Amount" set
     forth in Section 1.1 of the Loan Agreement is hereby amended to read in its
     entirety  as  follows:

          "Maximum  Revolving  Loan  Available  Amount"  means,  at any date, an
           -------------------------------------------
     amount  equal  to  the  lesser  of,  (i)  $6,000,000.00;  of  (ii) the then
     effective  Borrowing  Base.

          (d)  A  new  definition  of  "Borrowing Base Reduction Date" is hereby
     added  to  the  Loan  agreement  as  follows:

          "Borrowing  Base  Reduction  Date" means July 9, 2002; or in the event
           --------------------------------
     Borrower  exercises  the  option to extend such date as provided in Section
     3.2,  October  9,  2002.

     Section  3.     Amendment  to Section 3.2(b)of the Loan Agreement.  Section
3.2(b)  of  the  Loan  Agreement  is  hereby  amended to read in its entirety as
follows:

          "(b)  Borrowing  Base"  Borrower  shall from time to time on demand by
                ---------------
     Agent  prepay  the  Revolving  Loans (or provide Cover for Letter of Credit
     Liabilities) in such amounts as shall be necessary so that at all times the
     aggregate  outstanding  amount  of  all Revolving Loan Obligations shall be
     less  than  or  equal  to  the  Maximum  Revolving  Loan  Available Amount.
     Notwithstanding  the  foregoing,  Borrower  is  hereby granted an option to
     extend  the  Borrowing  Base Reduction Date until October 9, 2002 by giving
     the  Agent and the Lenders written notice of such election prior to July 9,
     2002  and  paying  a  fee of (i) $9,844.00; and (ii) by the issuance of one
     hundred  thousand  (100,000)  shares  of  the  authorized  common  stock of
     Borrower,  delivered  in  the  name of the Lenders, or as the Lenders shall
     otherwise  agree."

     Section  4.     No  Reliance  by  Others.  None  of  the provisions of this
Amendment  shall  inure  to  the benefit of Borrower or any other Obligor or any
Person other than Lenders and Agent; consequently, neither Borrower or any other
Obligor  shall  be,  and  no  Person  other than the Lenders and Agent shall be,
entitled  to rely upon or raise as a claim or defense, in any manner whatsoever,
the  failure  of  Lenders  and  Agent  to  comply  with  the  provisions of this
Amendment.  Neither  the  Agent  nor  any  Lender  shall  incur any liability to
Borrower or any other Obligor or any other Person for any act or omission of the
other.

     Section  5.     Limitations.  The  amendments  set forth herein are limited
precisely  as  written and shall not be deemed to (a) be a consent to, or waiver
or  modification of, any other term or condition of the Loan Agreement or any of
the other Loan Documents, or (b) except as expressly set forth herein, prejudice
any  right  or  rights  which the Lenders may now have or may have in the future
under or in connection with the Loan Agreement, the Loan Documents or any of the
other  documents referred to therein.  Except as expressly modified hereby or by
express

<PAGE>
written amendments thereof,  the terms and provisions of the Loan Agreement, the
Notes,  and  any  other  Loan  Documents  or  any other documents or instruments
executed  in  connection  with any of the foregoing are and shall remain in full
force  and  effect. In the event of a conflict between this Amendment and any of
the  foregoing documents, the terms of this Amendment shall be controlling.  The
representations  and  warranties made in each Loan Document are true and correct
in  all  material  respects  on  and  as  of  the  Amendment  Effective  Date.

     Section 6.     Representations and Warranties.  (a) To induce the Agent and
the  Lenders  to execute and deliver this Amendment (which representations shall
survive  the  execution and delivery of this Amendment), the Borrower represents
and  warrants  to  the  Agent  and  the  Lenders  that:

          (i) this Amendment has been duly authorized, executed and delivered by
     it  and this Amendment constitutes the legal, valid and binding obligation,
     contract and agreement of the Borrower enforceable against it in accordance
     with  its  terms,  except  as  enforcement  may  be  limited by bankruptcy,
     insolvency,  reorganization,  moratorium  or  similar  laws  or  equitable
     principles  relating  to  or  limiting  creditors'  rights  generally;

          (ii) the Loan Agreement, as amended by this Amendment, constitutes the
     legal, valid and binding obligation, contract and agreement of the Borrower
     enforceable  against  it in accordance with its respective terms, except as
     enforcement  may  be  limited  by  bankruptcy,  insolvency, reorganization,
     moratorium  or similar laws or equitable principles relating to or limiting
     creditors'  rights  generally;  and

          (iii)  the execution, delivery and performance by the Borrower of this
     Amendment  (1)  has been duly authorized by all requisite corporate action,
     (2)  does  not  require  the  consent  or  approval  of any governmental or
     regulatory body or agency, and (iii) will not (A) violate (x) any provision
     of  law, statute, rule or regulation or its certificate of incorporation or
     bylaws,  (y) any order of any court or any rule, regulation or order of any
     other  agency  or  government  binding upon it, or (z) any provision of any
     material indenture, agreement or other instrument to which it is a party or
     by  which  its properties or assets are or may be bound, including, without
     limitation, that certain Subordinated Note Restructuring Agreement dated as
     of  December  28,  2000  between  the Borrower and The Prudential Insurance
     Company  of  America  (the "Subordinated Note Restructuring Agreement"), or
     (B)  result in a breach or constitute (along or with due notice or lapse of
     time  or both) a default under any indenture, agreement or other instrument
     referred  to  in  clause  (3)(A)(z)  of  this  Section  6(a)(iii).

     Section  7.     Conditions  to  Effectiveness  of  This  Amendment.  This
Amendment  shall  not  become  effective until, and shall become effective when,
each  and every one of the following conditions shall have been satisfied on the
Effective  Date:

          (a)  executed  counterparts  of  this  Amendment, duly executed by the
     Borrower,  the  Agent  and  the  Lenders,  shall have been delivered to the
     Lenders;

<PAGE>
          (b)  the  Agent  shall  have received a copy of the resolutions of the
     Board  of Directors of the Borrower authorizing the execution, delivery and
     performance by the Borrower of this Amendment in the form annexed hereto as
     Exhibit  A;

          (c)  the  representations  and warranties of the Borrower set forth in
     Section  6  hereof  are  true  and  correct on and with respect to the date
     hereof;  and

          (d)  the  Borrower shall pay fees as consideration for the benefits it
     receives  under  this  Amendment  equal to (i) $22,500.00; (ii) one hundred
     thousand  (100,000)  shares  of  the  authorized  common  stock of Borrower
     delivered  in  the  name  of the Lenders, or as the Lenders shall otherwise
     agree, both of the foregoing being due on the Amendment Effective Date; and
     (iii)  $9,844.00  due  on  the  Borrowing  Base  Reduction  Date.

     Upon  receipt  of  all  of  the  foregoing,  this  Amendment  shall  become
effective.

     Section  8.     Waiver  of Prior Events of Default, Etc.  Upon satisfaction
of  the  conditions  set  forth in Section 6, each and every Default or Event of
Default  arising  under  the  Loan  Agreement  or under any document executed or
delivered in connection with the Loan Agreement, existing prior to the Effective
Date  shall  be  hereby  and  forever  waived  by  the  Agent  and  the Lenders.

     Section  9.     Payment  of  Expenses.  The Borrower agrees, whether or not
the transactions hereby contemplated shall be consummated, to reimburse and save
the  Agent harmless from and against liability for the payment of all reasonable
substantiated  out-of-pocket  costs  and expenses arising in connection with the
preparation,  execution,  delivery,  amendment,  modification,  waiver  and
enforcement  of, or the preservation of any rights under this Amendment, and any
other  any  local  or  other  counsel  for Agent, and all stamp taxes (including
interest  and  penalties,  if  any),  recording taxes and fees, filing taxes and
fees, and other charges which may be payable in respect of, or in respect of any
modification  of,  the  Loan  Agreement  and  the  other  Loan  Documents.  The
provisions  of  this Section shall survive the termination of the Loan Agreement
and  the  repayment  of  the  Loans.

     Section10.     Governing  Law.  This  Amendment  and  the  rights  and
obligations  of  the  parties  hereunder  and  under the Loan Agreement shall be
construed  in  accordance with and be governed by the laws of the State of Texas
and  the  United  States  of  America.

     Section 11.     Descriptive Headings, etc.  The descriptive headings of the
several  Sections  of this Amendment are inserted for convenience only and shall
not  be  deemed  to  affect the meaning or construction of any of the provisions
hereof.

     Section  12.     Entire  Agreement.  This  Amendment  and  the  documents
referred  to  herein  represent  the  entire understanding of the parties hereto
regarding  the subject matter hereof and supersede all prior and contemporaneous
oral  and  written  agreements  of  the  parties  hereto  with

<PAGE>
respect  to  the  subject  matter  hereof,  including,  without  limitation, any
commitment  letters  regarding  the transactions contemplated by this Amendment.

     Section 13.     Counterparts.  This Amendment may be executed in any number
of  counterparts  and  by  different parties on separate counterparts and all of
such  counterparts  shall  together  constitute  one  and  the  same instrument.
Complete  sets  of counterparts shall be lodged with the Borrower and the Agent.

     Section  14.     Amended  Definitions.  As  used  in  the  Loan  Agreement
(including  all  Exhibits  thereto)  and  all  other  instruments  and documents
executed  in  connection therewith, on and subsequent to the Amendment Effective
Date  the  term (i) "Agreement" shall mean the Loan Agreement as amended by this
Amendment,  and  (ii)  references to any and all other Loan Documents shall mean
such  documents  as  amended  as  contemplated  hereby.

<PAGE>
     In  Witness  Whereof,  the  parties hereto have caused this Amendment to be
duly  executed  and delivered by their respective duly authorized officers as of
the  date  first  above  written.

     Notice pursuant to Tex. Bus. & Comm. Code Sec.26.02

     This  Amendment and all other Loan Documents executed by any of the parties
before  or  substantially  contemporaneously  with the execution hereof together
constitute  a  written  Loan Agreement and represent the final agreement between
the  parties  between  the  parties  and  may not be contradicted by evidence or
prior,  contemporaneous  or subsequent oral agreements of the parties. There are
no  unwritten  oral  agreements  between  the  parties.

                                   Boots  &  Coots  International  Well
                                   Control,  Inc.,  a  Delaware  corporation

                                   By:
                                      -----------------------------------------

                                   Name:  Larry  H.  Ramming
                                   Title:  Chairman and Chief Executive Officer

                                   Specialty Finance Fund I, LLC, a Delaware
                                     limited liability Borrower (as successor to
                                     Comerica Bank-Texas, a Texas banking
                                     association) as Agent and as a Lender

                                   By:
                                      -----------------------------------------
                                   Name:
                                        ---------------------------------------
                                   Title:
                                         --------------------------------------

                                   By:
                                      -----------------------------------------
                                   Name:
                                        ---------------------------------------
                                   Title:
                                         --------------------------------------

                                   CHARLES  PARKER

                                     --------------------------------------
                                     Charles  Parker,  as  a  Lender

<PAGE>
The  undersigned  hereby  join  in  this  Amendment to evidence their consent to
execution  by Borrower of this Amendment, to confirm that each Loan Document now
or previously executed by the undersigned applies and shall continue to apply to
the  Loan Agreement, as amended hereby, to acknowledge that without such consent
and  confirmation.  Lenders  would not execute this Amendment and to join in the
notice  pursuant  to  Tex.  Bus.  &  Comm.  Code  Sec.26.02  set  forth  above.

                                     ABASCO,  INC.,
                                       a  Texas  corporation

                                     By:
                                        ----------------------------------------
                                     Name:  Larry  H.  Ramming
                                     Title: Chairman and Chief Executive Officer

                                     Boots & Coots Special Services, Inc.,
                                     a  Texas  corporation

                                     By:
                                        ----------------------------------------
                                     Name:  Larry  H.  Ramming
                                     Title: Chairman and Chief Executive Officer

                                     Elmagco,  Inc.,
                                       a  Delaware  corporation

                                     By:
                                        ----------------------------------------
                                     Name:  Larry  H.  Ramming
                                     Title: Chairman and Chief Executive Officer

                                     Hell  Fighters,  Inc.,
                                       a  Texas  corporation

                                     By:
                                        ----------------------------------------
                                     Name:  Larry  H.  Ramming
                                     Title: Chairman and Chief Executive Officer

<PAGE>
                                     IWC  Engineering,  Inc.,
                                       a  Texas  corporation

                                     By:
                                        ----------------------------------------
                                     Name:  Larry  H.  Ramming
                                     Title: Chairman and Chief Executive Officer

                                     IWC  Services,  Inc.,
                                       a  Texas  corporation

                                     By:
                                        ----------------------------------------
                                     Name:  Larry  H.  Ramming
                                     Title: Chairman and Chief Executive Officer

<PAGE>

                               FORM OF RESOLUTIONS

                                    Exhibit A

<PAGE>

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