Document:

<PAGE>

                                                                   Exhibit 10.13

                                                                          [LOGO]
                                                                       Broadview
                                                                       Networks
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Existing Lease Abstract

Building:               Hood Business Park, 500 Rutherford Avenue, Boston

Lease Data:             TBD

Landlord:               Hood Business Park, LLC

Tenant:                 Community Networks

Premises:               Portion of the 2nd floor

Rentable Area:          Approximately 11,000 RSF - 3,000 office and 9,490 switch

Lease Term:             Ten (10) years

Lease Commencement:     Upon full execution and unconditional delivery of
                        lease documents.

Lease Expiration:       Ten (10) years from Lease Commencement

Rent Commencement:      Office: Upon Possession
                        Switch: Three (3) months from Possession

Base Rent:              Years l-5:      Office: $20.00 pRSF NNN
                                        Switch: $17.75 pRSF NNN

                        Years 6-l0:     Office: $23.00 pRSF NNN
                                        Switch: $20.40 pRSF NNN

Electricity:            $1.75 pRSF

Real Estate Taxes:      included in Operating Expenses figure.

Operating Expenses:     $4.15 pRSF, which should grow at approximately
                        2% per year

Use:                    General Office use and the installation and maintenance
                        of equipment and facilities in connection with Community
                        Networks' telecommunications business. Tenant may also
                        use Premises as a switch, assuming Tenant acquires
                        proper permits.

Sublet/Assignment:      Tenant may sublet all or a portion of the premises or
                        assign the lease to an affiliate, parent company or
                        company under it's control without consent or to a non-
                        affiliate company with prior written consent of owner,
                        which may not be unreasonably withheld or delayed.

Parking:                Twenty (20) spaces at no charge.

Termination Option(s):  N/A

Expansion Option(s):    Landlord will work with Tenant to accommodate
                        expansion needs.

                                                                        EQUIS
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11/17/99
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                                                                          [LOGO]
                                                                       Broadview
                                                                       Networks
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Security Deposit:       TBD

Right of First Refusal: N/A

Renewal Option(s):      Tenant shall have one five (5) year renewal option.

                                                                        EQUIS
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11/17/99
<PAGE>

                                                                        N NORDIC

October 22, 1999

Mr. Brendan Callahan
Equis of New York
65 East 55th Street
15th Floor
New York, NY 10022

Dear Brendan:

As you requested, enclosed is a copy of the lease for Community Networks. Thanks
for all your help.

I look forward to doing more transactions with you in the future.

Sincerely,

/s/ G. Kent Gonzales

G. Kent Gonzales
Project Manager

GKGLML

Enclosure

                                                               -----------------
                                                                 31 Third Avenue
                                                                  Burlington, MA
                                                                      01803-4470
                                                                   (781)272-4000
                                                               Fax (781)270-0359
<PAGE>

[LOGO]community
       networks

Solutions that work for your business.

                                                      September 23,1999

Mr. Gary Buchman
Rachstein, Norman L Buchman, LLP
134O Centre Street-Suite 212
Newton Centre, MA 02459

Re: Community Networks, Inc. - Lease
    Hood Business Park, Charlestown, MA

Dear Mr. Buchman:

Enclosed please find four (4) copies of the above referenced lease agreement.
Please return a fully executed copy to my attention as soon as possible.

We will deliver a $209,000 letter of credit within a week.  If we are unable to
provide a letter of credit by l0/4/99 we will provide a $209,000 cash deposit
and subsequently "swap it out" for a letter of credit.

                                                      Sincerely,

                                                      /s/ Scott M. Matukas

                                                      Scott M. Matukas
                                                      VP - Administration

Cc: Joy Phanumas, Esquire
    Brendan Callahan
    Kent Gonzales

4518 Court Square, Suite 403, Long Island City, New York 11101 /718-707-8800
                                                              /Fax: 718-706-9575
<PAGE>

                                     LEASE
                                     -----

LANDLORD:       Hood Business Park LLC, a Massachusetts
                Limited Liability Company

TENANT:         Community Networks, Inc., a New York
                Corporation

PREMISES:       Hood Business Park, Charlestown, Massachusetts

DATED:          September 23, 1999
<PAGE>

                              TABLE OF CONTENTS
                              -----------------

   ARTICLE  CAPTION                                                PAGE
    I       REFERENCE DATA                                          1
            (A) Subjects Referred To                                1
            (B) Exhibits                                            3
    II      PREMISES                                                3
    III     TERM AND CONSTRUCTION                                   4
            (A) Term                                                4
            (B) Landlord's Required Work                            4
            (C) Tenant's Work                                       4
            (D) General Construction Provisions.                    5
            (E) Floor Area Measurement                              5
    IV      LANDLORD'S COVENANTS                                    5
            (A) Landlord's Covenants During The Term                5
            (B) Interruptions                                       5
    V       RENT                                                    6
            (A) Fixed Rent                                          6
            (B) Additional Rent - Taxes                             6
            (C) Additional Rent - Operating Costs                   8
            (D) Monthly Payments                                    10
            (E) Additional Rent -Electricity, Gas, Water & Sewer    10
    VI      TENANT'S COVENANTS                                      11
    VII     DEFAULT                                                 16
            (A) Events of Default                                   16
            (B) Obligations Thereafter                              17
    VIII    CASUALTY AND TAKING                                     17
            (A) Casualty And Taking                                 17
            (B) Reservation Of Award                                18
    IX      MORTGAGEE                                               18
            (A) Subordination To Mortgages                          18
            (B) Limitation On Mortgagee's Liability                 19
            (C) No Release Or Termination                           19
    X       GENERAL PROVISIONS.                                     20
            (A) Captions                                            20
            (B) Short Form Lease                                    20
            (C) Relocation                                          20
            (D) Notices                                             20
            (E) Successors And Assigns                              21
            (F) No Surrender                                        21
            (G) Waivers And Remedies                                21
            (H) Self-Help                                           21
            (I) Estoppel Certificate                                21
            (J) Waiver Of Subrogation                               23
            (K) Brokers                                             24
            (L) Landlord's Defaults                                 24
            (M) Effectiveness Of Lease.                             24
            (N) Hazardous Materials                                 24
            (0) Delays                                              25
    XI      SECURITY DEPOSIT                                        25
    XII     MODIFICATION                                            26
    XIII    OPTION                                                  26
            (A) Option Term                                         26
            (B) Option Rent                                         26
<PAGE>

                       Exhibit A   Plan Showing Location Of The Building
                       Exhibit A-l Condition of Building
                       Exhibit A-2 Roof Space
                       Exhibit B   Landlord's Required Work
                       Exhibit C   Intentionally Omitted
                       Exhibit D   Landlord's Services
                       Exhibit E   Rules And Regulations
                       Exhibit F   Legal Description Of Lot
<PAGE>

Lease dated as of the ____day of September, 1999, by and between Hood Business
Park LLC, a Massachusetts Limited Liability Company, as landlord ("Landlord"),
and Community Networks, Inc., a New York corporation, as tenant ("Tenant").

                                   ARTICLE I
                                REFERENCE DATA

1. (A) SUBJECTS REFERRED TO:

        Each reference in this lease to any of the following subjects shall be
construed to incorporate the data stated for that subject in this Section 1 (A):

LANDLORD'S ADDRESS: 90 Everett Avenue
                    Chelsea, MA 02150-2301

LANDLORD'S MANAGING AGENT: Nordblom Company
                           31 Third Avenue
                           Burlington, MA 01803-4470

TENANTS ADDRESS:    500 Rutherford Avenue
                    Charlestown. MA

BUILDING: That certain building designated as "500 Rutherford Avenue" upon
          Exhibit A.

RENTABLE FLOOR AREA OF TENANT'S SPACE:

        SWITCH: APPROXIMATELY 9490 SQUARE FEET
        OFFICE: APPROXIMATELY 3OOO SQUARE FEET

TOTAL RENTABLE FLOOR AREA OF THE BUILDING:

        WAREHOUSE: 109,148 SQUARE FEET
        OFFICE:    191,716 SQUARE FEET

APPROXIMATE DELIVERYDATE:

            WITHIN THIRTY (30) DAYS OF LEASE EXECUTION. IF LANDLORD IS UNABLE TO
            DELIVER THE SWITCH SPACE TO TENANT WITHIN SAID THIRTY (30) DAYS,
            LANDLORD SHALL PROVIDE A SECURE AREA FOR STORAGE OF TENANT'S SWITCH
            EQUIPMENT UNTIL SUCH TIME AS LANDLORD DELIVERS THE SWITCH SPACE TO
            TENANT.

COMMENCEMENT DATE: UPON DELIVERY OF EITHER THE OFFICE SPACE OR THE SWITCH SPACE
                   TO TENANT WITH LANDLORD'S WORK SUBSTANTIALLY COMPLETE.

ORIGINAL TERM: TEN (10) YEARS AND THREE (3) MONTHS FROM THE COMMENCEMENT DATE

                                       1
<PAGE>

OPTION TERM:    ONE (1) OPTION FOR FIVE (5) YEARS

FIXED RENT:

        OFFICE SPACE
        COMMENCING UPON THE COMMENCEMENT DATE AND THEREAFTER:

        DURING THE FIRST (5) YEARS OF THE ORIGINAL TERM --
        $60,00.00 PER ANNUM; AND

        DURING EACH YEAR OF THE BALANCE OF THE ORIGINAL TERM --
        $69,000.00 PER ANNUM.

        SWlTCH SPACE:

        DURING THE FIRST THREE (3) MONTHS FOLLOWING THE COMMENCEMENT DATE NO
        FIXED RENT SHALL BE PAYABLE; THEREAFTER DURING THE BALANCE OF THE
        FIRST FIVE (5) YEARS OF THE ORIGINAL TERM -- $168,447.50 PER ANNUM; AND

        DURING EACH YEAR OF THE BALANCE OF THE ORIGINAL TERM -- $193,596.00 PER
        ANNUM.

ADDITIONAL RENT FOR TAXES AND OPERATING COSTS:
        PRO RATA.

SECURITY DEPOSIT:       LETTER OF CREDIT FOR AN AMOUNT NOT TO EXCEED
                        $209,000.00. PROVIDED TENANT IS NOT IN DEFAULT BEYOND
                        ANY APPLICABLE CURE PERIOD, SAID LETTER OF CREDIT SHALL
                        BE REDUCED TO $139.333.00 FOLLOWING THE FIFTH (5TH)
                        YEAR OF THE TERM.

GUARANTOR: TBD

PERMITTED USE:          GENERAL OFFICE USE AND THE INSTALLATION AND MAINTENANCE
                        OF EQUIPMENT AND FACILITIES IN CONNECTION WITH TENANT'S
                        TELECOMMUNICATIONS BUSINESS. WHILE TENANT'S INTENDED USE
                        OF THE DEMISED PREMISES AS A TELECOMMUNICATION SWITCH IS
                        PERMITTED UNDER CURRENT ZONING, ANY SPECIAL PERMITS,
                        REQUIREMENTS OF LAW OR LOCAL AUTHORITIES, CHANGES IN
                        CERTIFICATE OF OCCUPANCY, ETC. AS NECESSARY DUE TO
                        TENANT'S USE WILL BE AT TENANT'S SOLE COST AND EXPENSE.

                                       2
<PAGE>

PUBLIC LIABILITY INSURANCE LIMITS: BODILY INJURY:
                                $2,000,000
                PROPERTY DAMAGE:$  500,000
(B)EXHIBITS

        The exhibits listed below in this Section are incorporated in this lease
by reference and are to be construed as part of this lease:

                       Exhibit A   Plan Showing Location Of the Building
                       Exhibit A-l Condition of Building
                       Exhibit A-2 Roof Space
                       Exhibit B   Landlord's Required Work
                       Exhibit C   Intentionally Omitted
                       Exhibit D   Landlord's Services
                       Exhibit E   Rules And Regulations
                       Exhibit F   Legal Description Of Lot

                                  ARTICLE II
                                   PREMISES

2. PREMISES

        Subject to and with the benefit of the provisions of this lease,
Landlord hereby leases to Tenant, and Tenant leases from Landlord, Tenant's
space on the second floor of the Building, excluding exterior faces of exterior
walls, all common facilities of the Building and all building service fixtures
and equipment serving (exclusively or in common) other parts of the Building.
Tenant's space includes approximately nine thousand four hundred ninety
(9,490)square feet of switch space and three thousand (3,000) square feet of
office space on the second floor of the Building. The Building is outlined in
red upon the plan attached as Exhibit A. Tenant's space, with such exclusions,
is hereinafter referred to as "the demised premises". In addition, Tenant shall
have the exclusive right to use that portion of the roof outlined on Exhibit A-2
to install and maintain certain equipment (other than antennae and other
transmitting devices) approved by Landlord and at no additional charge. Tenant
shall have, as appurtenant to the demised premises, the right to use in common
with others entitled thereto, subject to reasonable rules from time to time made
by Landlord of which Tenant is given notice: (i) the common facilities,
including cafeteria and exercise room (without monthly or annual fees, except as
provided for as part of Operating Expenses) from time to time included in the
Building or on the parcel of land on which the Building is located (said parcel
being more particularly described in Exhibit F and being hereafter referred to
as "the Lot"), to the extent from time to time designated by Landlord; and
(ii) the building service fixtures and equipment serving the demised premises.
The Lot is represented by the area outlined by a bold line upon said Exhibit A.
It is understood and agreed that said plan is intended only to show the
approximate size of the Lot as presently constituted and the approximate size
and location of the Building and for no other purpose. Landlord reserves the
right from time to time (a) to install, repair, replace, use, maintain and
relocate for service to the demised premises and to other parts of the,
Building or either, building service fixtures and equipment wherever located in
the Building; (b) to alter, relocate or eliminate any other common facility; (c)
to designate specific parking areas upon the Lot to be for the exclusive use of
one or more users thereof; (d) to designate specific traffic routes for trucks
and other delivery vehicles; (e) to alter the size of the Building, including,
without

                                       3
<PAGE>

limitation, converting warehouse space to office space or office space to
warehouse space; and (f) to increase and/or decrease the size of the Lot by the
acquisition of adjacent land and/or the disposition of any portions thereof. No
such increase or decrease shall be deemed to have occurred until Landlord shall
give Tenant notice thereof. Landlord shall designate parking for at least twenty
(20) cars as "Reserved for Customers" reasonably proximate to the Building
entrance. Notwithstanding the foregoing, Landlord agrees that it shall not
unreasonably adversely impair access to or egress from the demised premises.

                                  ARTICLE III
                             TERM AND CONSTRUCTION

3.      (A)     TERM

        To have and to hold for a period of ten (10) years ("the original Term"
or "the Term") commencing when the office space or switch space, whichever
occurs first, are deemed ready for occupancy as provided hereinbelow (being
hereafter referred to as "the Commencement Date") and, unless sooner terminated
as provided herein, ending at the end of the Term; provided that if the Term
(calculated as aforesaid) would expire prior to the last day of a calendar
month, the Term shall be extended so as to expire on the last day of such
calendar month.

        (B)     LANDLORD'S REQUIRED WORK

        Landlord agrees to use reasonable efforts to complete Landlord's
Required Work (described in Exhibit B) on or before the Approximate Delivery
Date, which shall, however, be extended for a period equal to that of any delays
due to governmental regulations, scarcity of or inability to obtain labor or
materials, labor difficulties, casualty or other causes reasonably beyond
Landlord's control. The demised premises shall be deemed ready for occupancy on
the substantial completion of Landlord's Required Work in the office space
and/or switch space and the delivery of either the office space or the switch
space to Tenant.

Landlord shall permit Tenant access (at Tenant's sole risk) for installing
equipment and furnishings in the demised premises prior to the Term if it can be
done without material interference with, or delay of, Landlord's work in the
demised premises and/or in other portions of the Building.

        Notwithstanding, the foregoing provisions of this Section (B), if the
demised premises are not deemed ready for occupancy on or before the first
anniversary of the Approximate Delivery Date for whatever reason, other than
Tenant's default, Tenant may elect to cancel this lease at any time within ten
days thereafter (but only if the demised premises are still not deemed ready for
occupancy) by giving notice to Landlord of such cancellation, which cancellation
shall be effective when given, it being understood that said election shall be
Tenant's sole remedy at law or in equity for Landlord's failure to make the
demised premises ready for occupancy. Furthermore, if the term of this lease
shall not have commenced on or before the third anniversary of the Approximate
Delivery Date, this lease shall thereupon automatically terminate.

        (C)     TENANT'S WORK

        Intentionally Omitted.

                                       4
<PAGE>

        (D)     GENERAL C0NSTRUCTION PROVISIONS

        All construction work required or permitted by this lease, whether by
Landlord or by Tenant, shall be done in a good and workmanlike manner and in
compliance with all applicable laws and all lawful ordinances, regulations and
orders of governmental authorities and insurance rating or inspection bureaus
having jurisdiction over the Building. Either party may inspect the work of the
other at reasonable times and shall promptly give notice of observed defects.
Landlord's Required Work shall be deemed to have been performed upon the
Commencement Date except for items which are incomplete or do not conform with
the requirements of Exhibit B and as to which Tenant shall, in either case, have
given written notice to Landlord prior to the Commencement Date.

        (E)     FLOOR AREA MEASUREMENT

        Within sixty (60) days following the Commencement Date, Tenant may
engage an independent certified architectural surveyor to measure the actual
floor area of the demised premises. Tenant's architect or surveyor shall
determine the floor area by measuring same from the outside of any exterior
walls to the center of any interior demising walls. If the architect's, or
surveyor's measurements of the floor area of the demised premises is less than
the rentable floor area of Tenant's space as set forth in Article 1 above by
three percent (3%) or more, Fixed Rent and Tenant's proportionate share of taxes
and Operating Costs shall be proportionately reduced. If the variance is less
than three percent (3%) of the floor area of the demised premises, or if the
demised premises shall contain more square foot of floor area than as set forth
in Article 1 above, no adjustment shall be made.

                                  ARTICLE IV
                             LANDLORD'S COVENANTS

4.      (A)     LANDLORD'S COVENANTS DURING THE TERM:

        Landlord covenants during the Term:

        (1) To furnish, through Landlord's employees or independent
contractors, the services listed in Exhibit D; and

        (2) Except as otherwise provided in this lease, to make such structural
repairs to the roof, exterior walls, and common facilities of the Building, the
Lot and the demised premises as may be necessary to keep them in serviceable
condition.

        (B)     INTERRUPTIONS

        Except as otherwise expressly provided herein, Landlord shall not be
liable to Tenant for any compensation or reduction of rent by reason of
inconvenience or annoyance or for loss of business arising from (a) power losses
or shortages, or (b) the necessity of Landlord's entering the demised premises
for any of the purposes in this lease authorized, including without limitation,
for repairing or altering the demised premises or any portion of the Building or
for bringing materials into and/or through the demised premises in connection
with the making of repairs or alterations.

                                       5
<PAGE>

        In case Landlord is prevented or delayed from making any repairs,
alterations or improvements or furnishing any service or performing any other
covenant or duty to be performed on Landlord's part, by reason of any cause
reasonably beyond Landlord's control, Landlord shall not be liable to Tenant
therefor, nor, except as expressly otherwise provided in Article VIII, shall
Tenant be entitled to any abatement or reduction of rent by reason thereof, nor
shall the same give rise to a claim in Tenant's favor that such failure
constitutes actual or constructive, total or partial, eviction from the demised
premises. Landlord reserves the right to stop any service or utility system when
necessary, in Landlord's reasonable opinion by reason of accident or emergency
or until necessary repairs have been completed. Except in case of emergency
repairs (in which case Landlord shall give such notice as is reasonably
practicable under the circumstances), Landlord will give Tenant reasonable
advance notice of any contemplated stoppage and, in any event, Landlord will use
reasonable efforts to avoid unnecessary inconvenience to Tenant by reason
thereof. Landlord agrees that if there is such a stoppage of such service or
utility system for more than ten (10) business days, and if Tenant cannot
reasonably conduct its business in the demised premises as a result thereof,
Fixed Rent shall thereafter abate until such service or utility system is
restored or Tenant is again able reasonably to conduct its business in the
demised premises.

                                  ARTICLE V
                                     RENT

5.      (A)     FIXED RENT

        Tenant agrees to pay, without any offset or reduction whatever {except
as made in accordance with the express provisions of this lease), fixed monthly
rent equal to 1/12th of the Fixed Rent, such rent to be paid in equal
installments in advance on the first day of each calendar month included in the
Term, except as otherwise set forth in Section (A) of Article 1 above; and for
any portion of a calendar month at the beginning or end of the Term, a portion
of such fixed monthly rent, prorated on a per diem basis. All payments of
Fixed and additional rent shall be made in lawful money of the United States and
shall be made to Hood Business Park LLC and sent to Landlord's Managing Agent at
Managing Agent's Address set forth in Section (A) of Article I above, or to such
other person and/or at such other address as Landlord may from time to time
designate.

        If any payment of rent or any other payment payable hereunder by Tenant
to Landlord shall not be paid within ten (10) days of when due, the same shall
bear interest from the date when the same was payable until the date paid at the
lesser of (a) fifteen percent (15%) per annum, or (b) the highest lawful rate of
interest which Landlord may charge to Tenant without violating any applicable
law. Such interest shall constitute additional rent payable hereunder.

        (B)     ADDITIONAL RENT -TAXES

        (1)     For the purposes of this Section, "Tax Year" shall mean the
twelve month period in use in the City of Boston for the purpose of imposing ad
valorem taxes upon real property. In the event that said City changes the period
of its tax year, "Tax Year" shall mean a twelve-month period commencing on the
first day of such new tax year, and each twelve-month period commencing on an
anniversary of such date during the Term of this lease. For purposes of this
Section "the Property" shall mean the Lot and all improvements thereon from time
to time, including the Building; and "the Factor" shall mean a fraction the

                                       6
<PAGE>

        (7)     As of the Commencement Date, Landlord represents and warrants
that Landlord has paid in full all currently due taxes; and Landlord shall pay
when due all future taxes provided Tenant makes timely payment of same.

        (C)     ADDITIONAL RENT - OPERATING COSTS

        (1)     For the purposes of this Section, the following terms shall have
the following respective meanings:

        Operating Year: Each successive fiscal year (as adopted by Landlord) in
which any part of the Term of this lease shall fall.

        "Operating Expenses" shall mean all costs or expenses incurred for the
operation, cleaning, maintenance, repair and upkeep of the Property, including,
without limitation, all costs of maintaining and repairing the Property
(including snow removal, landscaping and grounds maintenance parking lot
operation and maintenance, security, operation and repair of ventilating and
airconditioning equipment, elevators, lighting and any other Building equipment
or systems) and of all repairs and replacements (other than repairs or
replacements for which Landlord has received full reimbursement from
contractors, other tenants of the Building or from others) necessary to keep the
Property in good working order, repair, appearance and condition; all costs,
including material and equipment costs for cleaning and janitorial services to
the Building (including window cleaning of the Building); all costs of any
reasonable insurance carried by Landlord relating to the Property; all costs
related to provision of heat (including oil, electric, steam and/or gas), air-
conditioning, and water (including sewer charges) and other utilities to the
Building, (but excluding the reheat units in Tenant's VAV units); payments under
all service contracts relating to the foregoing; all compensation, fringe
benefits, payroll taxes and workmen's compensation insurance premiums related
thereto with respect to any employees of Landlord or its affiliates engaged in
security and maintenance of the Property; attorneys'fees and disbursements
(exclusive of any such fees and disbursements incurred in tax abatement
proceedings or the preparation of leases) and auditing and other professional
fees and expenses; and a management fee at market rates customarily paid with
respect to buildings similar to the Building.

There shall not be included in such Operating Expenses brokerage fees (including
rental fees) related to the operation of the Building; interest and depreciation
charges incurred on the Property; or expenditures made by Tenant with respect to
(i) cleaning, maintenance and upkeep of the demised premises; and (ii) the
provision of electricity to the demised premises. Operating Expenses shall not
include (1) the initial costs of equipment properly chargeable to the capital
account consisting of items of real estate in nature and the original costs of
constructing the Common Areas; (2) expenses for which the Landlord is or will be
reimbursed by another source (excluding tenant reimbursement for Operating
Expenses) including repair or replacement of any item covered by warranty; (3)
costs incurred to benefit (or as a result of) a specific tenant or items and
services selectively supplied to any specific tenant; (4) expenses for the
defense of the Landlord's title to the demised premises or the Building;
(5) depreciation and amortization of the Building, financing costs, including
interest and principal debts; (6) charitable or political contributions; (7)
costs of improving or renovating space for a tenant or space vacated by a
tenant; (8) expenses paid directly by Tenant for any reason (such as excessive
utility use); (9) any repair, rebuilding or other work necessitated by
condemnation, fire, windstorm or other

                                       8
<PAGE>

insured casualty or hazard, but only to the extent of the insurance proceeds
received by Landlord therefor; (10) any other amounts as a result of Landlord's
violation or failure to comply with any governmental regulations and rules or
any court order, decree or judgment; (11) leasing commissions, advertising
expenses and other costs incurred in leasing or procuring new tenants;
(12) rental on ground leases or other underlying leases; and (13) attorneys'
fees, accounting fees and expenditures incurred in connection with negotiations,
disputes and claims of other tenants or occupants of the Building or with other
third parties except as specifically provided in the lease. Landlord agrees that
it shall not charge Tenant twice for any Operating Expenses, and to the extent
any personnel of Landlord shall perform services for other properties of
Landlord or its affiliates, the cost of such personnel shall be appropriately
prorated.

If, during the Term of this lease, Landlord shall replace any capital items or
make any capital expenditures reasonably necessary to maintain the structural
integrity of the demised premises or the Building or of the utility systems
servicing the demised premises, or which result in reducing Operating Expenses
(collectively called "capital expenditures") the total amount of which is not
properly included in Operating Expenses for the calendar year in which they were
made, there shall nevertheless be included in Operating Expenses for each
calendar year in which and after such capital expenditure is made the annual
charge-off of such capital expenditure. (Annual charge-off shall be determined
by (i) dividing the original cost of the capital expenditure by the number of
years of useful life thereof [the useful life shall be reasonably determined by
Landlord in accordance with generally accepted accounting principles and
practices in effect at the time of acquisition of the capital item]; and
(ii) adding to such quotient an interest factor computed on the unamortized
balance of such capital expenditure based upon an interest rate reasonably
determined by Landlord as being the interest rate then being charged for long
term mortgages by institutional lenders on like properties within the locality
in which the Building is located.) Provided, further, that if Landlord
reasonably concludes on the basis of engineering estimates that a particular
capital expenditure will effect savings in Operating Expenses and that such
annual projected savings will exceed the annual charge-off of capital
expenditure computed as aforesaid, then and in such events, the annual charge-
off shall be determined by dividing the amount of such capital expenditure by
the number of years over which the projected amount of such savings shall fully
amortize the cost of such capital item or the amount of such capital
expenditure; and by adding the interest factor, as aforesaid.

        The foregoing are intended to describe only the extent of potential cost
and expenses and impose no obligation on Landlord to incur same.

        The Factor: As defined in Section (B) above.

        Building's Share of Operating Expenses: One hundred percent (100%)of the
Operating Expenses with respect to the Building plus the product of the
Operating Expenses with respect to the Lot and a fraction the numerator of
which is the rentable floor area contained within the Building and the
denominator of which is the rentable floor area contained within all of the
buildings located upon the Lot and not separately maintained by the tenants
thereof.

        (2) During the Term commencing on the Commencement Date Tenant shall pay
to Landlord, as additional rent, an amount equal to the Building's Share of
Operating Expenses for each Operating Year multiplied by the Factor, such

                                       9
<PAGE>

amount to be apportioned on a per diem basis for any fraction of an Operating
Year contained within the Term.

        (3) In the event of any taking by eminent domain under circumstances
whereby this lease shall not terminate, each of the Building's Share of
Operating Expenses and the Factor shall be appropriately adjusted to reflect any
change in rentable floor area.

        (D) MONTHLY PAYMENTS

        Payment on account of the additional rent described in Sections (B) and
(C) above shall be paid, as part of Tenant's total rent, monthly, and at the
times and in the fashion herein provided for the payment of Fixed Rent. For an
initial period from the Commencement Date until the end of the Tax Year during
which the term of this lease shall commence, the monthly amount so to be paid
shall be that amount equal to one twelfth (1/12th) the product of $4.15 and the
square foot floor area of the demised premises, being that amount reasonably
estimated by Landlord for such purpose at the commencement of the Term. Promptly
after the end of said Tax Year, and promptly after the end of each Tax Year
thereafter, Landlord shall make a determination of Tenant's share of real estate
taxes and Operating Expenses; and if the aforesaid payments theretofore made for
such period by Tenant exceed Tenant's share, such overpayment shall be credited
against the payments thereafter to be made by Tenant pursuant to this Section
(D); and if Tenant's share is greater than such payments theretofore made on
account for such period, Tenant shall make a suitable payment to Landlord. The
initial monthly payment on account of said additional rent shall be replaced
after Landlord's determination of Tenant's share for the preceding Tax Year by a
payment which is one-twelfth (l/l2th)of Tenant's actual share thereof for the
immediately preceding Tax Year, with adjustments as appropriate where such
period is less than a full twelve-month period. Appropriate adjustments shall be
made in said monthly payment if the real estate taxes upon the Property for the
current Tax Year shall be known prior to the end of said Tax Year and/or if real
estate taxes shall be payable to the taxing authority in installments, all to
the end that as each payment of real estate taxes shall become payable Landlord
shall have received from Tenant payments sufficient in amount to pay Tenant's
share of the Building's Share of Real Estate Taxes then payable by Landlord. At
Landlord's election, Landlord may use its fiscal year rather than Tax Years for
purposes of the adjustments described in this Section. Landlord shall provide
Tenant with copies of invoices upon request but in any event not more often than
once per year.

        (E)     ADDITIONAL RENT - ELECTRICITY, GAS, WATER & SEWER

        (1)     The demised premises shall have utility meters measuring only
the amount of the utilities consumed in the demised premises, and commencing
upon Tenant's entry into the demised premises to perform Tenant's work, Tenant
shall pay to the utility companies furnishing such utilities, promptly upon the
receipt of bills therefor, the cost of such utilities consumed in the demised
premises.

        (2)     Tenant's use of electricity in the demised premises shall not
at any time exceed the capacity of any of the electrical conductors or equipment
in or otherwise serving the demised premises. Landlord represents that the
existing feeders, risers, and wiring installations in the Building are capable
of supplying without any adverse impact on other occupants or the need for
upgrading electrical service, and there shall be available to the perimeter of
the demised

                                       10
<PAGE>

premises on the Commencement Date, at least 1200 Amperes of electric service.
The cost of bringing said electric service from the main utility source in the
Building to the demised premises shall be Tenant's obligation and at Tenant's
cost and expense.

                                  ARTICLE VI
                              TENANT'S COVENANTS

6.      TENANT'S COVENANTS DURING THE TERM.

        Tenant covenants during the Term and such other time as Tenant occupies
any part of the demised premises:

        (1)     To pay when due (a) all Fixed Rent and additional rent, (b) all
taxes which may be imposed on Tenant's personal property in the demised premises
(including, without limitation, Tenant's fixtures and equipment)regardless to
whomever assessed, and (c) all charges by any public utility for telephone and
other utility services rendered to the demised premises;

        (2)     Except as otherwise provided in Article VIII and Section
4(A)(2), to keep the demised premises in good order, repair and condition,
reasonable wear only excepted; to replace all light bulbs as necessary; maintain
and replace all interior glass; keep all utilities, pipes, conduits, drains and
other installations exclusively used in connection with the demised premises
(other than the tie-ins to the Building's life, safety and fire systems which
shall be Landlord's obligation to repair and maintain), including, without
limitation, the heating, ventilating and air conditioning systems which serve
only the demised premises in good order, condition and repair; and at the
expiration or termination of this lease peaceably to yield up the demised
premises and all changes and additions therein in such order, repair and
condition, first removing all goods and effects of Tenant and those claiming
under Tenant and any items the removal of which is required by any agreement
between Landlord and Tenant (or specified therein to be removed at Tenant's
election and which Tenant elects to remove), and repairing all damage caused by
such removal and restoring the demised premises and leaving them clean and neat.
Notwithstanding anything to the contrary contained herein, Tenant shall
forthwith remove from the demised premises (repairing any damage caused by such
removal) any installations, alterations, additions or improvements made by
Tenant without Landlord's consent or which Landlord, at the time of granting
consent thereto, requests Tenant to remove. Tenant shall remove same within
thirty (30) days after the expiration or termination of the term of this lease,
such removal to include returning the previously modified portions of the
demised premises to their condition prior to the making of such installations,
alterations, additions or improvements. Tenant's obligations hereunder shall
survive the expiration or termination of the term of this lease. For purposes of
this Section (2)the word "repairs" includes the making of non structural
replacements when necessary. Upon the expiration or sooner termination of this
lease, whether or not6t such termination is a result of default, Tenant shall
have the right, at its expense, to remove from the demised premises all items
and nonstructural characteristics that are indicative of Tenant's business, and
otherwise to "deidentify" the demised premises, as Tenant reasonably believes
necessary or appropriate for the protection of Tenant's interest in Tenant's
trademarks, tradenames, copyrights and other proprietary interests, provided
Tenant shall repair any damage to the demised premises caused by the removal
thereof, which repair shall include the patching and filling of holes. In no
event shall Tenant remove any restrooms, flooring, ceilings or electrical
systems. All
                                       11
<PAGE>

other utility systems will be capped and returned to a condition compatible with
code requirements. Any removal of furnishings, machinery, fixtures, equipment,
improvements, or personal property by Tenant shall be conducted in a good and
workmanlike manner, and Tenant shall diligently and promptly repair or restore
any injury or damage done to the demised premises in connection with such
removal;

        (3)     Continuously from the Commencement Date, to use and occupy the
demised premises only for the Permitted Use; and not to injure or deface the
demised premises, Building, or Lot; and not to permit in the demised premises
any auction sale, nuisance, or the emission from the demised premises of any
objectionable noise or odor; nor any use thereof which is improper, offensive,
contrary to law or ordinances, or liable to invalidate or increase the premiums
for any insurance on the Building (or any portion thereof)or its contents, or
liable to render necessary any alteration or addition to the Building. Tenant
shall obtain Landlord's consent prior to the installation of antennae or other
transmitting devices on the roof of the Building, and Tenant shall pay the fair
market rent (determined in the same manner as set forth in Section (B)of Article
13 below) for locating said antennae and/or equipment on the roof of the
Building. Landlord represents and warrants to Tenant that (i) Tenant's permitted
use of the demised premises shall not in and of itself violate any of the
provisions of this lease or the provisions of any grant, lease, or mortgage to
which this lease is subordinate; (ii) the certificate of occupancy for the
Building permits the use of the demised premises by Tenant for the purpose set
forth in Article 1 above; (iii) Tenant's use of the demised premises for the
purposes specified herein will not in and of itself violate Landlord's insurance
policies which shall be in effect immediately prior to the beginning of the Term
of this lease, nor increase the premiums therefor;

        (4)     To comply with the rules and regulations set forth in Exhibit E
and all other reasonable rules and regulations hereafter made by Landlord (but
only after copies thereof have been delivered to Tenant) for the care and use of
the Building and Lot and their facilities and approaches, it being expressly
understood, however, that Landlord shall not be liable to Tenant for the failure
of other tenants of the Building to conform to such rules and regulations. The
lease provisions shall control and supersede any contradictory or inconsistent
provisions contained in the rules and regulations or in any Exhibit to this
lease;

        (5)     To keep the demised premises equipped with all safety appliances
required by law or ordinance or any other regulation of any public authority
and/or any insurance inspection or rating bureau having jurisdiction, and to
procure all licenses and permits required because of any use made by Tenant and,
if requested by Landlord, to do any work required because of such use, it being
understood that the foregoing provisions shall not be construed to broaden in
any way the Permitted Use;

        (6)     Not without the prior written consent of Landlord (which consent
Landlord agrees that it shall not unreasonably withhold), to assign,
hypothecate, pledge or otherwise encumber this lease, to make any sublease or to
permit occupancy of the demised premises or any part thereof by anyone other
than Tenant, voluntarily or by operation of law, and as additional rent, to
reimburse Landlord promptly upon demand for reasonable legal and other expenses
incurred by Landlord in connection with any request by Tenant for consent to
assignment or subletting. If Landlord shall consent to any assignment of this
lease by Tenant or a subletting of the whole of the demised premises by Tenant
at

                                       12
<PAGE>

a rent which exceeds the rent payable hereunder by Tenant, or if Landlord shall
consent to a subletting of a portion of the demised premises by Tenant at a rent
in excess of the subleased portion's prorata share of the rent payable hereunder
by Tenant, then Tenant shall pay to Landlord, as additional rent forthwith upon
Tenant's receipt of each installment of any such excess rent, fifty percent
(50%) of any such excess rent. Each request by Tenant for permission to assign
this lease or to sublet the whole or any part of the demised premises shall be
accompanied by a warranty by Tenant as to the amount of rent to be paid to
Tenant by the proposed assignee or sublessee. For purposes of this Section (6),
the term "rent" shall mean all fixed rent, additional rent or other payments
and/or consideration payable by one party to another for the use and occupancy
of premises. Tenant agrees, however, that neither it nor anyone claiming under
it shall enter into any sublease, license, concession or other agreement for
use, occupancy or utilization of space in the demised premises which provides
for rental or other payment for such use, occupancy or utilization based, in
whole or in part, on the net income or profits derived by any person or entity
from the space leased, used, occupied or utilized (other than an amount based on
a fixed percentage or percentages of receipts or sales), and Tenant agrees that
any such purported sublease, license, concession or other agreement shall be
absolutely void and ineffective as a conveyance of any right or interest in the
possession, use, occupancy, or utilization of any part of the demised premises.
Tenant further agrees that any sublease, license, concession or agreement, for
use, occupancy or utilization of space in the demised premises entered into by
it or by anyone claiming under it shall contain the provisions set forth in the
immediately preceding sentence. Tenant further agrees that if a sublease is
entered into, neither the rent payable thereunder nor the amount thereof passed
oh LO any person or entity shall have deducted therefrom any expenses or costs
related in any way to the subleasing of such space. If and whenever Tenant shall
not be a so-called "publicly held" company, it is understood and agreed that the
transfer of fifty percent (50%)or more of the stock in Tenant of any class
(whether at one time or at intervals)shall constitute an "assignment" of
Tenant's interest in this lease. Notwithstanding The foregoing, during such time
as Tenant shall not be a publicly held corporation, transfers of stock (i)by and
among existing shareholders; (ii) pursuant to an initial public offering; and
(iii) transfers of stock for estate planning to immediate family members of
existing shareholders, or trusts created therefore, shall not be deemed an
assignment of this lease. If there shall be any assignment or subletting by
Tenant pursuant to the provisions of this paragraph, Tenant shall remain
primarily liable for the performance and observance of the covenants and
agreements herein contained on the part of Tenant to be performed and observed,
such liability to be (in the case of any assignment) joint and several with that
of such assignee. It is expressly understood and agreed that no assignment of
Tenant's interest in this lease shall be effective until such time as Tenant
shall deliver to Landlord an agreement from the assignee, which agreement shall
be reasonably satisfactory to Landlord in form and substance and shall provide
that the assignee agrees with Landlord to be primarily liable for the
performance and observance of the covenants and agreements herein contained on
the part of Tenant to be performed and observed, such liability to be joint and
several with that of Tenant. Landlord hereby agrees, however, that Tenant may
assign its interest in this lease or sublet the whole of the demised premises to
a)a corporation which owns all of the outstanding stock of Tenant (" Tenant's
Parent"); (b)a corporation wholly owned by Tenant or by Tenant's Parent (" a
Subsidiary"); or (c)a corporation resulting from the consolidation or merger of
Tenant with any other corporation. Landlord agrees, further, that it shall not
unreasonably withhold, delay or condition its consent to an assignment of this
lease to an entity which shall acquire all or substantially all

                                       13
<PAGE>

of the assets or stock of Tenant. Notwithstanding the foregoing provisions, if
the assignment or subletting is to a Subsidiary, said assignment or subletting
shall be valid only for such period of time as said Subsidiary is wholly owned
by Tenant or Tenant's Parent. In the event that Tenant or Tenant's Parent shall
ever sell or otherwise transfer any interest in said Subsidiary to another
person or entity, unless Landlord shall have specifically assented thereto, the
same shall be deemed to be a material breach of this lease;

        (7)     To defend Landlord, with counsel acceptable to Landlord, save
Landlord harmless from, and indemnify Landlord against any liability for injury,
loss, accident or damage to any person or property and from any claims, actions,
proceedings and expenses and costs in connection therewith (including, without
implied limitation, reasonable counsel's fee): (i) arising from the omission,
fault, willful act, negligence or other misconduct of Tenant or anyone claiming
under Tenant, or from any use made or thing done or occurring upon or about the
demised premises but not due to the omission, fault, willful act, negligence or
other misconduct of Landlord, or (ii)resulting from the failure of Tenant to
perform and discharge its covenants and obligations under this lease beyond any
applicable cure period;

        (8)     To maintain public liability insurance upon the demised premises
in amounts which shall, at the beginning of the Term, be at least equal to
$2,000,000.00 for bodily injury or death to one or more individuals and
$500,000.00 for damage to property, and from time to time during the Term, shall
be for such higher limits, if any, as are customarily carried in the area in
which the demised premises are located upon property similar in type and use to
the demised premises. Such insurance shall name Landlord, Landlord's Managing
Agent, and Landlord's Mortgagee as additional insureds. Tenant shall deliver to
Landlord certificates thereof, at least fifteen (15) days prior to the
Commencement Date, and each renewal policy or certificate thereof, at least
fifteen (15)days prior to the expiration of the policy it renews. Each such
policy shall be written by a responsible insurance company authorized to do
business in the Commonwealth of Massachusetts and shall provide that the same
shall not be modified or terminated wit! lout at least twenty (20) days' prior
written notice to each named insured;

        (9)     To keep all employees working in the demised premises covered by
workmen's compensation insurance in amounts required by law, and to furnish
Landlord with certificates thereof;

        (10)    To permit Landlord and its agents entry: to examine the demised
premises at reasonable times upon prior reasonable notice (except in an
emergency when Landlord may enter at any time)and, if Landlord shall so elect,
to make repairs, alterations and replacements; to remove, at Tenant's expense,
any changes, additions, signs, curtains, blinds, shades, awnings, aerials,
flagpoles, or the like not consented to in writing; and to show the demised
premises to prospective tenants during the nine (9) months preceding the
expiration of the Term and to prospective purchasers and mortgagees at all
reasonable times. Landlord agrees that in exercising its rights pursuant to this
subsection (l0). it shall not unreasonably interfere with Tenant's conduct of
business in the demised premises;

or
        (11)    Not to place a load upon any part of the tloor of the demised
premises exceeding that for which said floor was designed or in violation of
what is allowed by law; and not to move any safe, vault or other heavy equipment
in,

                                       14
<PAGE>

about or out of the demised premises except in such manner and at such times as
Landlord shall approve in writing in each instance. Tenant's business machines
and mechanical equipment which cause vibration or noise that may be transmitted
to the Building structure or to any other space in the Building shall be placed
and maintained by Tenant in settings of cork, rubber, spring, or other types of
vibration eliminators sufficient to confine such vibration or noise to the
demised premises. Tenant shall have the right to place a reasonable amount of
heating, ventilating and air conditioning equipment approved by Landlord on the
roof of the Building in locations and in a manner reasonably acceptable to
Landlord at no additional charge. Landlord warrants that the floor load capacity
of the demised premises is 150 lbs. per square foot;

        (12)    All the furnishings, fixtures, equipment, effects and property
of every kind, nature and description of Tenant and of all persons claiming by,
through or under Tenant which, during the continuance of this lease or any
occupancy of the demised premises by Tenant or anyone claiming under Tenant, may
be on the demised premises or elsewhere in the Building or on the Lot shall be
at the sole risk and hazard of Tenant, and if the whole or any part thereof
shall be destroyed or damaged by fire, water or otherwise, or by the leakage or
bursting of water pipes, steam pipes, or other pipes, by theft, or from any
other cause, no part of said loss or damage is to be charged to or to be borne
by Landlord. Unless caused by the gross negligence or willful act of Landlord,
its agents, servants, employees or contractors;

        (13)    To pay promptly when due the entire cost of any work done on the
demised premises by Tenant and those claiming under Tenant; not to cause or
permit any liens for labor or materials performed or furnished in connection
therewith to attach to the demised premises; and immediately to discharge any
such liens which may so attach after notice;

        (14)    Not to make any alterations, improvements, changes or additions
to the demised premises without Landlord's prior written consent. Tenant shall
have the right to tie the switch space into and or connect same with the vents,
pipes, ducts and conduits of the Building in connection with Tenant's initial
work to prepare the switch space for Tenant's occupancy and the providing of
utility services thereto, all in accordance with plans and specifications
approved by Landlord;

        (15)    To pay to Landlord one hundred seventy five percent (175%)of the
total of the Fixed Rent and additional rent then applicable for each month or
portion thereof that Tenant shall retain possession of the demised premises or
any part thereof after the termination of this lease, whether by lapse of time
or otherwise, and also to pay all damages sustained by Landlord on account
thereof; however, the provisions of this subsection shall not operate as a
waiver by Landlord of any right of re-entry provided in this lease or as a
matter of law;

        (16)    To insure the contents, equipment, and improvements of Tenant
and those claiming under Tenant, under policies covering at least fire and the
standard extended coverage risks, in amounts equal to eighty percent (80%)of the
replacement cost thereof, the terms of which policies shall provide that such
insurance shall not be canceled without at least twenty (20) days' prior written
notice to Landlord. Copies of such insurance policy or policies, or certificates
there of, shall be delivered to Landlord at least fifteen (IS)days prior to the
Commencement Date and each renewal policy or certificate thereof, at least
fifteen (15)days prior to the expiration of the policy it renews.
Notwithstanding

                                       15
<PAGE>

anything contained to the contrary contained in this lease, Landlord shall have
no interest in any insurance proceeds Tenant receives for Tenant's property and
Landlord shall sign waivers of lien reasonably acceptable to Landlord in
connection with Tenant's personal property. Tenant may carry the aforesaid
policies under blanket policies provided the demised premises is separately
identified thereon; and

        (17)*   To pay Landlord's expenses, including reasonable attorney's
fees, incurred in enforcing any obligation of Tenant in this lease.

                                  ARTICLE VII
                                    DEFAULT

7.      (A)     EVENTS OF DEFAULT

        (1)     If Tenant shall default in the payment of Fixed Rent, additional
rent or other payments required of Tenant, and if Tenant shall fail to cure said
default within ten (10)days after receipt of notice of said default from
Landlord, or (2) if Tenant shall default in the performance or observance of any
other agreement or condition on its part to be performed or observed and if
Tenant shall fail to cure said default within fifteen days after receipt of
notice of said default from Landlord (but if longer than fifteen days shall be
reasonably required to cure said default, then if Tenant shall fail to commence
the curing of such default within fifteen days after receipt of said notice and
diligently prosecute the curing thereof to completion), or (3) if any person
shall levy upon, or take this leasehold interest or any part thereof upon
execution, attachment or other process of law, or (4) if Tenant or Guarantor
shall make an assignment of its property for the benefit of creditors, or (5)
if Tenant or Guarantor shall be declared bankrupt or insolvent according to law,
or (6) if any bankruptcy or insolvency proceedings shall be commenced by or
against Tenant or Guarantor and, if against, if not dismissed within ninety
(90)days, or (7) if a receiver, trustee or assignee shall be appointed for the
whole or any part of Tenant's or Guarantor's property, and such appointment is
not stayed after seven (7) business days, then in any of said cases, Landlord
lawfully may immediately, or at any time thereafter, and upon five (5) days
notice or demand, enter into and upon the demised premises or any part thereof
in the name of the whole, and hold the demised premises as if this lease had not
been made, and expel by judicial proceeding Tenant and those claiming under it
and remove its or their property without being taken or deemed to be guilty of
any manner of trespass (or Landlord may send written notice to Tenant of the
termination of this lease), and upon entry as aforesaid (or in the event that
Landlord shall send Tenant notice of termination as above provided, on the fifth
day next following the date of the sending of the notice), the term of this
lease shall terminate. Notwithstanding the provisions of clause (1) of the
immediately preceding sentence, if Landlord shall have rightfully given Tenant
notice of default pursuant to either or both of said clauses twice during any
twelve-month period, and if Tenant shall hereafter default in the payment of
Fixed Rent, additional rent or other payments required of Tenant, then Landlord
may exercise the right of termination provided for it in said immediately
preceding sentence without first giving Tenant notice of such default and the
opportunity to cure the same within the time provided in said clause (1). Tenant
hereby expressly waives any and all rights of redemption granted by or under any
present or future laws in the event of Tenant being evicted or dispossessed for
any cause, or in the event Landlord terminates this lease as provided in this
Article.

                                       16
<PAGE>

        (B)     OBLIGATIONS THEREAFTER

        In case of any such termination, Tenant will indemnify Landlord each
month against all loss of Fixed Rent and additional rent and against all
obligations which Landlord may incur by reason of any such termination between
the time of termination and the expiration of the Term; or at the election of
Landlord, exercised at the time of termination or at any time thereafter, Tenant
will indemnify Landlord each month until the exercise of the election against
all loss of Fixed Rent and additional rent and against all obligations which
Landlord may incur by reason of such termination during the period between the
time of the termination and the exercise of the election, and upon the exercise
of the election Tenant will pay to Landlord as damages such amount as at the
time of the exercise of the election represents the amount by which the rental
value of the demised premises for the period from the exercise of the election
until the expiration of the Term shall be less than the amount of rent and
other payments provided herein to be paid by Tenant to Landlord during said
period. It is understood and agreed that at the time of the termination or at
any time thereafter Landlord may rent the demised premises, and for a term which
may expire before or after the expiration of the Term, without releasing Tenant
from any liability whatsoever, that Tenant shall be liable for any reasonable
expenses incurred by Landlord in connection with obtaining possession of the
demised premises, with removing from the demised premises property of Tenant and
persons claiming under it (including warehouse charges), with putting the
demised premises into good condition for reletting, and with any reletting,
including, but without limitation, reasonable attornes' fees and brokers fees,
and that any monies collected from any reletting shall be applied first to the
foregoing expenses and then to the payment of Fixed Rent, additional rent and
all other payments due from Tenant to Landlord.

                                 ARTICLE VIII
                              CASUALTY AND TAKING

8.      (A)  CASUALTY AND TAKING

        In case during the Term all or any substantial part of the demised
premises, the Building, or Lot or any one or more of them, are damaged by fire
or any other casualty or by action of public or other authority or are taken by
eminent domain, this lease shall terminate at Landlord's election, which may be
made notwithstanding Landlord's entire interest may have been divested, by
notice given to Tenant within thirty days after the occurrence of the event
giving rise to the election to terminate. Said notice shall, in the case of
damage as aforesaid, specify the effective date of termination which shall be
not less than thirty nor more than sixty days after the date of notice of such
termination. In the case of any such taking by eminent domain, the effective
date of the termination shall be the day on which the taking authority shall
take possession of the taken property. Fixed Rent and additional rent shall be
apportioned and adjusted as of the effective date of any such termination. If in
any such case the demised premises are rendered unfit for use and occupation and
this lease is not so terminated, Landlord shall use due diligence to put the
demised premises, or, in the case of a taking, what may remain thereof
(excluding any items which Tenant may be required or permitted to remove from
the demised premises at the expiration of the Term) into proper condition for
use and occupation, but Landlord shall not be required to spend more than the
net proceeds of insurance or award of damages it receives therefor, and a just
proportion of the Fixed Rent and additional rent according to the nature and
extent of the injury to the demised

                                       17
<PAGE>

premises shall be abated until the demised premises or such remainder shall have
been put by Landlord in such condition; and in case of a taking which
permanently reduces the area of the demised premises, a just proportion of the
Fixed Rent shall be abated for the remainder of the Term. Notwithstanding the
foregoing, if there shall be damage or destruction to the demised premises by
fire or other casualty which shall not be repaired or restored by Landlord
within a period of twelve (12) months after the date of such damage or
destruction, then Tenant, as Tenant's sole remedy, may terminate the Term of
this lease by notice to Landlord within sixty (60) days after the expiration of
such twelve (12) month period; provided that said repair or restoration shall
not have been completed prior to the receipt by Landlord of said notice. If any
damage or destruction occurs to the demised premises during the last year of the
Term and the cost to repair the damage exceeds Twenty Five Thousand Dollars
($25,000.00), either Landlord or Tenant may terminate this lease upon giving the
other party thirty (30) days written notice; provided, however, that if Landlord
notifies Tenant that it wishes to terminate this lease pursuant to the foregoing
sentence, then Tenant may, if it has not already done so, exercise its right to
extend the Term of the lease, whereupon Landlord's election to terminate shall
be null and void.

        (B)     RESERVATION OF AWARD

        Landlord reserves to itself any and all rights to receive awards made
for damage to the demised premises, Building or Lot and the leasehold hereby
created, or any one or more of them, accruing by reason of any exercise of the
right of eminent domain or by reason of anything done in pursuance of public or
other authority. Tenant hereby releases and assigns to Landlord all of Tenant's
rights to such awards, and covenants to deliver such further assignments and
assurances thereof as Landlord may from time to time request. It is agreed and
understood, however, that Landlord does not reserve to itself, and Tenant does
not assign to Landlord, any damages payable for (i) movable equipment installed
by Tenant or anybody claiming under Tenant at its own expense or (ii) relocation
expenses, but in each case only if and to the extent that such damages are
recoverable by Tenant from such authority in a separate action and without
reducing Landlord's award of damages.

                                  ARTICLE IX
                                  MORTGAGEE

9.      (A)     SUBORDINATION TO MORTGAGES

        It is agreed that the rights and interest of Tenant under this lease
shall be: (i) subject and subordinate to the lien of any present or future first
mortgage and to any and all advances to be made thereunder, and to the interest
thereon, upon the demised premises or any property of which the demised
premises are a part, if the holder of such mortgage shall elect, by notice to
Tenant, to subject and subordinate the rights and interest of Tenant under this
lease to the lien of its mortgage; or (ii) prior to the lien of any present or
future first mortgage, if the holder of such mortgage shall elect, by notice to
Tenant, to give the rights and interest of Tenant under this lease priority to
the lien of its mortgage. It is understood and agreed that the holder of such
mortgage may also elect, by notice to Tenant, to make some provisions hereof
subject and subordinate to the lien of its mortgage while granting other
provisions hereof priority to the lien of its mortgage. In the event of any of
such elections, and upon notification by the holder of such mortgage to that
effect, the rights and interest of Tenant under this lease shall be deemed to be
subordinate to, or to have priority over, as the case

                                       18
<PAGE>

may be, the lien of said mortgage, irrespective of the time of execution or time
of recording of any such mortgage. Tenant agrees that it will, upon request of
Landlord, execute, acknowledge and deliver any and all instruments deemed by
Landlord necessary or desirable to evidence or to give notice of such
subordination or priority. Tenant also agrees that if it shall fail at any time
after twenty (20) days notice to execute, acknowledge and deliver any such
instrument reasonably requested by Landlord, Landlord may, in addition to any
other remedies available to it, execute, acknowledge and deliver such instrument
as the attorney-in-fact of Tenant and in Tenant's name; and Tenant does hereby
make, constitute and irrevocably appoint Landlord as its attorney-in-fact and in
its name, place and stead so to do. The word "mortgage" as used herein includes
mortgages, deeds of trust or other similar instruments and modifications,
consolidations, extensions, renewals, replacements and substitutes thereof.
Whether the lien of any mortgage upon the demised premises or any property of
which the demised premises are a part shall be superior or subordinate to this
lease and the lien hereof, Tenant agrees that it will, upon request, attorn to
the holder of such mortgage or anyone claiming under such holder and their
respective successors and assigns in the event of foreclosure of or similar
action taken under such mortgage. Tenant further agrees that it shall not
subordinate its interest in this lease, to the lien of any junior mortgage,
security agreement or lease affecting the demised premises, unless the holder of
the first mortgage upon the demised premises or property which includes the
demised premises shall consent thereto. Notwithstanding anything to the contrary
contained in this Article 9, Landlord shall use its best efforts to cause the
holder of such mortgage to enter into an agreement with Tenant, recordable in
form, to the effect that in the event of foreclosure of, or similar action taken
under, such mortgage, Tenant's possession of the demised premises shall not be
terminated or disturbed by such mortgage holder or anyone claiming under such
mortgage holder so long as Tenant shall not be in default under this lease
beyond any applicable cure period.

        (B)     LIMITATION ON MORTGAGEE'S LIABILITY

        Upon entry and taking possession of the mortgaged premises for any
purpose, the holder of a mortgage shall have all rights of Landlord, and during
the period of such possession Landlord, not such mortgage holder, shall have the
duty to perform all of Landlord's obligations hereunder. No such holder shall be
liable, either as a mortgagee or as holder of a collateral assignment of this
lease, to perform, or be liable in damages for failure to perform, any of the
obligations of Landlord unless and until such holder shall succeed to Landlord's
interest herein through foreclosure of its mortgage or the taking of a deed in
lieu of foreclosure, and thereafter such mortgage holder shall not be liable for
the performance of any of Landlord's obligations hereunder, except for the
performance of those obligations which arise during the period of time that such
mortgage holder holds Landlord's right, title and interest in this lease, such
liability to be limited to the same extent as Landlord's liability is limited
pursuant to Section 10(E)hereof.

        (C)     NO RELEASE OR TERMINATION

        No act or failure to act on the part of Landlord which would entitle
Tenant under the terms of this lease, or by law, to be relieved of any of
Tenant's obligations hereunder or to terminate this lease, shall result in a
release or termination of such obligations or a termination of this lease unless
(i) Tenant shall have first given written notice of Landlord's act or failure to
act to

                                       19
<PAGE>

Landlord's mortgagees of record, if any, specifying the act or failure to act on
the part of Landlord which could or would be the basis of Tenant's rights and
(ii) such mortgagees, after receipt of such notice, have failed or refused to
correct or cure the condition complained of within a reasonable time thereafter,
but nothing contained in this Section (C) shall be deemed to impose any
obligation on any such mortgagee to correct or cure any such condition.
"Reasonable time" as used above means and includes a reasonable time to obtain
possession of the mortgaged premises, if the mortgagee elects to do so, and a
reasonable time to correct or cure the condition. Finally, Tenant agrees that so
long as any present or future mortgage shall remain in effect Tenant shall not
alter, modify, amend, change, surrender or cancel this lease nor pay the rent
due hereunder in advance for more than thirty (30) days, except as may be
required herein, without the prior written consent of the holder thereof, and
Tenant will not seek to be made an adverse or defendant party in any action or
proceeding brought to enforce or foreclose such mortgage.

                                   ARTICLE X
                              GENERAL PROVISIONS

        10.     (A) CAPTIONS

        The captions of the Articles are for convenience and are not to be
considered in construing this lease.

        (B)     SHORT FORM LEASE

        Upon request of either party both parties shall execute and deliver a
short form of this lease in form appropriate for recording, and if this lease is
terminated before the Term expires, an instrument in such form acknowledging the
date of termination. No such short form lease shall contain any indication of
the amount of the rentals payable hereunder by Tenant.

        (C)     RELOCATION

        Intentionally Omitted.

        (D)     NOTICES

        All notices and other communications authorized or required hereunder
shall be in writing and shall be given by mailing the same by certified or
registered mail, return receipt requested, postage prepaid, by mailing the same
by Express Mail or by having the same delivered by a commercial delivery service
such as Federal Express, UPS, Purolator Courier and the like. If given to Tenant
the same shall be directed to Tenant at Tenant's Address, with a copy to Littman
Krooks Roth and Ball P.C., 655 Third Avenue, 20th Floor, New York, New York
10012, with a further copy to Scott Matukas, Community Networks, 45-18 Court
Square, Suite 403, Long Island City, New York 11101, or to such other person or
at such other address as Tenant may hereafter designate by notice to Landlord;
and if given to Landlord the same shall be directed to Landlord at Landlord's
Address, or to such other person or at such other address as Landlord may
hereafter designate by notice to Tenant. In the event the notice directed as
above provided shall not be received upon attempted delivery thereof to the
proper address and shall be returned by the Postal Service or delivery service
to the sender because of a refusal of receipt, the absence of a person to
receive, or

                                       20
<PAGE>

otherwise, the time of the giving of such notice shall be the first business day
on which delivery was so attempted.

        After receiving notice from Landlord or from any person, firm or other
entity holds a mortgage which includes the demised premises as part of the
mortgaged premises, no notice from Tenant to Landlord shall be effective unless
and until a copy of the same is given by certified or registered mail to such
holder, and the curing of any of Landlord's defaults by such holder shall be
treated as performance by Landlord, it being understood and agreed that such
holder shall be afforded a reasonable period of time after the receipt of such
notice in which to effect such cure.

        (E)     SUCCESSORS AND ASSIGNS

        The obligations of this lease shall run with the land, and this lease
shall be binding upon and inure to the benefit of the parties hereto and their
respective heirs, legal representatives, successors and assigns, except that the
Landlord named herein and each successive owner of Landlord's interest in this
lease shall be liable only for the obligations of Landlord accruing during the
period of its ownership. Whenever Landlord's interest in this lease is owned by
a trustee or trustees, the obligations of Landlord shall be binding upon
Landlord's trust estate, but not upon any trustee, beneficiary or shareholder of
the trust individually. Without limiting the generality of the foregoing, and
whether or not Landlord's interest in this lease is owned by a trustee or
trustees, Tenant specifically agrees to look solely to Landlord's interest in
the Building and Lot for recovery of any judgment from Landlord, it being
specifically agreed that neither Landlord, any trustee, beneficiary or
shareholder of any trust estate for which Landlord acts nor any person or entity
claiming by, through or under Landlord shall ever otherwise be personally liable
for any such judgment.

        (F)     NO SURRENDER

        The delivery of keys to any employee of Landlord or to Landlord's agent
or any employee thereof shall not operate as a termination of this lease or a
surrender of the demised premises.

        (G)     WAIVERS AND REMEDIES

        The failure of Landlord or of Tenant to seek redress for violation of,
or to insist upon the strict performance of any covenant or condition of this
lease, or, with respect to such failure of Landlord, any of the rules and
regulations referred to in Section 6(4), whether heretofore or hereafter adopted
by Landlord, shall not be deemed a waiver of such violation nor prevent a
subsequent act, which would have originally constituted a violation, from having
all the force and effect of an original violation, nor shall the failure of
Landlord to enforce any of said rules and regulations against any other tenant
in the Building be deemed a waiver of any such rules or regulations as far as
Tenant is concerned. The receipt by Landlord of Fixed Rent or additional rent
with knowledge of the breach of any covenant of this lease shall not be deemed a
waiver of such breach by Landlord unless such waiver be in writing signed by
Landlord. No consent or waiver express or implied, by Landlord or Tenant to or
of any breach of any agreement or duty shall be construed as a waiver or consent
to or of any other breach of the same or any other agreement or duty. No
acceptance by Landlord of a lesser sum than the Fixed Rent and additional rent
then due shall be deemed to be other than on account of the earliest installment
of such rent due, nor shall any

                                       21
<PAGE>

endorsement or statement on any check or any letter accompanying any check or
payment as rent be deemed as accord and satisfaction, and Landlord may accept
such check or payment without prejudice to Landlord's right to recover the
balance of such installment or pursue any other remedy available to it. The
specific remedies to which 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 it may be lawfully entitled in case of any breach or
threatened breach by Tenant of any provisions of this lease. In addition to the
other remedies provided in this lease, Landlord shall be entitled to the
restraint by injunction of tie violation or attempted or threatened violation of
any of the covenants, conditions or provisions of this lease or to a decree
compelling specific performance of any such covenants, conditions or provisions.
If any term1 of this lease, or the application thereof to any person or
circumstances shall be held, to any extent, to be invalid or unenforceable, the
remainder of this lease, or the application of such term to persons or
circumstances other than those as to which it has been held invalid or
unenforceable, shall not be affected thereby, and each term of this lease shall
be valid and enforceable to the fullest extent permitted by law. If any interest
to be paid by Tenant hereunder shall exceed the highest lawful rate which
Landlord may recover from Tenant, such interest shall be reduced to such highest
lawful rate of interest.

        (H)  SELF-HELP

        If Tenant shall at any time default in the performance of any obligation
under this lease, Landlord shall have the right, but shall not be obligated, to
enter upon the demised premises and to perform such obligation, notwithstanding
the fact that no specific provision for such performance by Landlord is made in
this lease with respect to such default. In performing such obligation, Landlord
may make any payment of money or perform any other act. All sums so paid by
Landlord (together with interest, from the time paid by Landlord until the time
Tenant repays the same to Landlord, at the rate of interest per annum as set
forth in Section (A)of Article V above, shall be deemed to be additional rent
and shall be payable to Landlord immediately on demand. Landlord may exercise
the foregoing right without waiving any other of its rights or releasing Tenant
from any of its obligations under this lease. If Landlord shall at any time
default in the performance of any obligation under this lease, Tenant shall have
the right, but shall not be obligated, to enter upon the demised premises and to
perform such obligation, notwithstanding the fact that no specific provision
for such performance by Tenant is made in this lease with respect to such
default. In performing such obligation, Landlord may make any payment of money
or perform any other act. All sums so paid by Tenant (together with interest,
from the time paid by Tenant until the time Landlord repays the same to Tenant,
at the rate of interest per annum as set forth in Section (A)of Article V above,
shall be payable to Tenant immediately on demand. Tenant may exercise the
foregoing right without waiving any other of its rights or releasing Landlord
from any of its obligations under this lease.

        (I)  ESTOPPEL CERTIFICATE

        Tenant agrees from time to time after the Commencement Date, upon not
less than five days' prior written request by Landlord, to execute, acknowledge
and deliver to Landlord a statement in writing certifying that this lease is
unmodified and in full force and effect; that Landlord has completed Landlord's
Required Work; that Tenant has no defenses, offsets or counterclaims against its
obligations to pay the Fixed Rent and additional rent and to perform its other

                                       22
<PAGE>

covenants under this lease; that there are no uncured defaults of Landlord or
Tenant under this lease (or, if there have been any modifications, that this
lease is in full force and effect as modified and stating the modifications,
and, if there are any defenses, offsets, counterclaims, or defaults, setting
them forth in reasonable detail); and the dates to which the Fixed Rent,
additional rent and other charges have been paid. Any such statement delivered
pursuant to this Section (I) may be relied upon by any prospective purchaser or
mortgagee of premises which include the demised premises or any prospective
assignee of any such mortgagee. Landlord agrees from time to time after the
Commencement Date, upon not less than five days' prior written request by
Tenant, to execute, acknowledge and deliver to Tenant a statement in writing
certifying that this lease is unmodified and in full force and effect; that
Landlord has completed Landlord's Required Work; that Tenant has no defenses,
offsets or counterclaims against its obligations to pay the Fixed Rent and
additional rent and to perform its other covenants under this lease; that there
are no uncured defaults of Landlord or Tenant under this lease (or, if there
have been any modifications, that this lease is in full force and effect as
modified and stating the modifications, and, if there are any defenses, offsets,
counterclaims, or defaults, setting them forth in reasonable detail); and the
dates to which the Fixed Rent, additional rent and other charges have been paid.

        (J)  WAIVER OF SUBROGATION

        (1)  Tenant hereby releases Landlord to the extent of Tenant's
insurance coverage, from any and all liability for any loss or damage caused by
fire or any of the extended coverage casualties or any other casualty insured
against, even if such fire or other casualty shall be brought about by the fault
or negligence of Landlord or its agents, provided, however this release shall be
in force and effect only with respect to loss or damage occurring during such
time as Tenant's policies covering such loss or damage shall contain a clause to
the effect that this release shall not affect said policies or the right of
Tenant to recover thereunder. Tenant agrees that its fire and other casualty
insurance policies will include such a clause so long as the same is includable
without extra cost, or if extra cost is chargeable therefor, so long as Landlord
pays such extra cost. If extra cost is chargeable therefor, Tenant will advise
Landlord thereof and of the amount thereof. Landlord at its election, may pay
the same, but shall not be obligated to do so.

        (2)  Landlord hereby releases Tenant, to the extent of the Landlord's
insurance coverage, from any and all liability for any loss or damage caused by
fire or any of the extended coverage casualties or any other casualty insured
against, even if such fire or other casualty shall be brought about by the fault
or negligence of Tenant or its agents, provided, however, this release shall be
in force and effect only with respect to loss or damage occurring during such
time as Landlord's policies covering such loss or damage shall contain a clause
to the effect that this release shall not affect said policies or the right of
Landlord to recover thereunder. Landlord agrees that its fire and other casualty
insurance policies will include such a clause so long as the same is includable
without extra cost, or if extra cost is chargeable therefor, so long as Tenant
pays such extra cost. If extra cost is chargeable therefor, Landlord will advise
Tenant thereof and of the amount thereof. Tenant at its election may pay the
same, but shall not be obligated to do so.

                                       23
<PAGE>

        (K)     BROKERS

        Tenant hereby represents and warrants to Landlord that it has dealt with
no broker in connection with this lease other than Equis and CB Richard Ellis
Whittier Partners ("the Listed Broker/s"), and there are no other brokerage
commissions or other finders' fees payable in connection herewith. Tenant hereby
agrees to hold Landlord harmless from, and indemnified against, all loss or
damage (including without limitation, the cost of defending the same)arising
from any claim by any broker other than ("the Listed Broker/s"), claiming to
have dealt with Tenant. Landlord shall pay the commission due the Listed
Broker/s by separate agreement. Landlord hereby represents and warrants to
Tenant that it has dealt with no broker in connection with this lease other than
Equis and CB Richard Ellis Whittier Partners ("the Listed Broker/s"), and there
are no other brokerage commissions or other finders' fees payable in connection
herewith. Landlord hereby agrees to hold Tenant harmless from, and indemnified
against, all loss or damage (including without limitation, the cost of defending
the same) arising from any claim by any broker other than "the Listed
Broker/s", claiming to have dealt with Landlord.

        (L)     LANDLORD'S DEFAULTS

        Landlord shall not be deemed to have committed a breach of any
obligation to make repairs or alterations or perform any other act unless: (1)
it shall have made such repairs or alterations or performed such other act
negligently; or (2) it shall have received notice from Tenant designating the
particular repairs or alterations needed or the other act of which there has
been failure of performance and shall have failed to make such repairs or
alterations or performed such other act within a reasonable time after the
receipt of such notice; and in the latter event Landlord's liability shall be
limited to the cost of making such repairs or alterations or performing such
other act.

        (M)     EFFECTIVENESS OF LEASE

The submission of this lease for examination does not constitute a reservation
of, or option for, the demised premises, and this lease becomes effective as a
lease only upon execution and unconditional delivery thereof by both Landlord
and Tenant.

        (N)     HAZARDOUS MATERIALS

        Tenant shall not (either with or without negligence)cause or permit the
escape, disposal or release of any biologically or chemically active or other
hazardous substances, or materials. Tenant shall not allow the storage or use of
such substances or materials in any manner not sanctioned by the applicable
permits, or by law or by the highest standards prevailing in the industry for
the storage and use of such substances or materials, nor allow to be brought
into the Lot any such materials or substances except to use in the ordinary
course of Tenant's business, and then only after written notice is given to
Landlord of the identity of such substances or materials. Tenant shall obtain
and maintain all proper permits required by applicable law or ordinance for the
storage and use of hazardous materials, and Tenant shall furnish evidence of
same upon request. Without limitation, hazardous substances and materials shall
include those described in the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section 9601 et
seq., the Resource Conservation and Recovery Act, as amended, 42 U.S.C. Section
6901 et seq., any

                                       24
<PAGE>

applicable state or local laws and the regulations adopted under these acts. If
any lender or governmental agency shall ever require testing to ascertain
whether or not there has been any release of hazardous materials, then the
reasonable costs thereof shall be reimbursed by Tenant to Landlord upon demand
as additional rent if such requirement applies to the demised premises. In
addition, Tenant shall execute affidavits, representations and the like from
time to time at Landlord's request concerning Tenant's best knowledge and belief
regarding the presence of hazardous substances or materials on the demised
premises. In all events, Tenant shall indemnify Landlord in the manner elsewhere
provided in this least from any release of hazardous materials on the demised
premises occurring while Tenant is in possession, or elsewhere if caused by
Tenant or persons acting under Tenant. Landlord shall indemnify Tenant from any
release of hazardous materials on the Lot caused by Landlord or persons acting
under Landlord. The within covenants shall survive the expiration or earlier
termination of the term of this lease.

        (0)     DELAYS

        In any case where either party hereto is required to do any act (other
than make a payment of money), delays caused by or resulting from Act of God,
war, civil commotion, fire or other casualty, labor difficulties, shortages of
labor, materials or equipment, government regulations or other causes beyond
such party's reasonable control (other than such party's financial
condition) shall not be counted in determining the time during which such act
shall be completed, whether such time be designated by a fixed date, a fixed
time or "a reasonable time". In any case where work is to be paid for out of
insurance proceeds or condemnation awards, due allowance shall be made, both to
the party required to perform such work and to the party required to make such
payment, for delays in the collection of such proceeds and awards.

                                  ARTICLE XI
                               SECURITY DEPOSIT

        11.     Landlord acknowledges that it has received from Tenant the
Security Deposit, as security for the payment of rents and the performance and
observance of the agreements and conditions in this lease contained on the part
of Tenant to be performed and observed. In the event of any default or defaults
in such payment, performance or observance Landlord may apply said sum or any
part thereof toward the curing of any such default or defaults and/or toward
compensating Landlord for any loss or damage arising from any such default or
defaults. Upon the yielding up of the demised premises at the expiration or
other termination of the Term, if Tenant shall not then be in default or
otherwise liable to Landlord, said sum or the unapplied balance thereof shall
be returned to Tenant. It is understood and agreed that Landlord shall always
have the right to apply said sum, or any part thereof, as aforesaid in the event
of any such default or defaults, without prejudice to any other remedy or
remedies which Landlord may have, or Landlord may pursue any other such remedy
or remedies in lieu of applying said sum or any part thereof. No interest shall
be payable on said sum or any part thereof. If Landlord shall apply said sum or
any part thereof as aforesaid, Tenant shall upon demand pay to Landlord the
amount so applied by Landlord, to restore the security to its original amount.
Whenever the holder of Landlord's interest in this lease, whether it be the
Landlord named in this lease or any transferee of said Landlord, immediate or
remote, shall transfer its interest in this lease, said holder shall turn over
to its transferee said sum or the unapplied balance thereof, and thereafter such
holder shall be released from any and all

                                       25
<PAGE>

liability to Tenant with respect to said sum or its application or return, it
being understood that Tenant shall thereafter look only to such transferee with
respect to said sum, its application and return. The holder of any mortgage upon
property which includes the demised premises shall never be responsible to
Tenant for said sum or its application or return unless said sum shall actually
have been received in hand by such holder.

                                  ARTICLE XII
                                 MODIFICATION

        12.     In the event that any holder or prospective holder of any
mortgage which includes the demised premises as part of the mortgaged premises,
shall request any modification of any of the provisions of this lease, other
than a provision directly related to the rents payable hereunder, the duration
of the term hereof, or the size, use or location of the demised premises,
Tenant agrees that Tenant will enter into an amendment of this lease containing
each such modification so requested provided same does not enlarge Tenant's
obligations hereunder.

                                 ARTICLE XIII
                                    OPTION

        13.     (A) OPTION TERM

                Tenant shall have the right, at its election, to extend the
original Term of this lease for an additional period of five (5) years
commencing upon the expiration of the original Term, provided that Landlord
shall receive written notice from Tenant of the exercise of its election at
least nine (9) months prior to the expiration of the original Term and provided
further that Tenant shall not be in default beyond any applicable cure period at
the time of Landlord's receipt of such notice in the performance or observance
of any of the terms and agreements in this lease contained on the part of Tenant
to be performed or observed. The expression "the original Term" means the period
of ten (10) years referred to in Section (A) of Article 1 above. Prior to the
exercise by Tenant of said election to extend the original Term, the expression
"the Term of this lease" or any equivalent expression shall mean the original
Term; after the exercise by Tenant of the aforesaid election, the expression
"the Term of this lease" or any equivalent expression shall mean the original
Term as extended. Except as expressly otherwise provided in this lease, all the
agreements and conditions in this lease contained shall apply to the additional
period to which the original Term shall be extended as aforesaid. If Landlord
shall receive notice of the exercise of the election in the manner and within
the time provided aforesaid, the Term shall be extended upon the receipt of the
notice without the requirement of any action on the part of Landlord.

        B.      OPTION RENT

                During the additional period for which the original Term of this
lease may be extended as set forth in Section (A) of this Article $13 above, the
Fixed Rent payable hereunder shall be adjusted so as to equal the greater of
(a) the Fixed Rent payable immediately prior thereto, or (b) the "fair market
rent", as mutually determined by Landlord and Tenant through the process of
negotiation. Notwithstanding anything to the contrary contained herein, however,
if for any reason whatsoever Landlord and Tenant shall not agree in writing upon
the "fair market rent" for said additional period at least six (6) months prior
to the

                                       26
<PAGE>

expiration of the original Term, then the fair market rent for premises of the
size and nature of the demised premises shall be determined by licensed real
estate appraisers having at least five (5) years' experience in the appraisal of
commercial real estate in the Greater Boston area, one such appraiser to be
designated by each of Landlord and Tenant. If either party shall fail to
designate its appraiser by giving notice of the name of such appraiser to the
other party within fifteen (15)days after receiving notice of the name of the
other party's appraiser, then the appraiser chosen by the other party shall
determine the fair market rent and his determination shall be final and
conclusive. If the appraisers designated by Landlord and Tenant shall disagree
as to the fair market rent, but if the difference between their estimates of
fair market rent shall be five percent (5%)or less of the greater of the
estimates, then the average of their estimates shall be the fair market rent for
purposes hereof. If the appraisers designated by Landlord and Tenant shall
disagree as to the amount of fair market rent, and if their estimates of fair
market rent shall vary by more than five percent (5%)of the greater of said
estimates, then they shall jointly select a third appraiser meeting the
qualifications set forth above, and his estimate of fair market rent shall be
the fair market rent for purposes hereof if it is not greater than the greater
of the other two estimates and not less than the lesser of the other two
estimates. If said third appraiser's estimate is greater than the greater of the
other two estimates, then the greater of the other two estimates shall be the
fair market rent for purposes hereof; and if the estimate of the third appraiser
shall be less than the lesser of the other two estimates, then the lesser of the
other two estimates shall be the fair market rent for purposes hereof. Each of
Landlord and Tenant shall pay for the services of its appraiser, and if a third
appraiser shall be chosen, then each of Landlord and Tenant shall pay for one-
half of the services of the third appraiser. After determination has been made
of the Fixed Rent payable for the additional period, Landlord and Tenant shall
execute and deliver to each other an instrument setting forth the annual Fixed
Rent as so determined.

        EXECUTED as a sealed instrument in two or more counterparts as of the
 day and year first above written.

                                      LANDLORD:
                                      HOOD BUSINESS PARK LLC
                                      BY: CATAMOUNT RUTHERFORD LLC
                                         ITS MANAGER

                                      /s/ Stephen J. Kaneb, Manager
                                      ------------------------------
                                      Stephen J. Kaneb, Manager

                                      TENANT:
                                      COMMUNITY NETWORKS, INC.

                                      /s/ Vern Kennedy
                                      ------------------------------
                                      Vern Kennedy,  President

                                      ATTEST:

                                      /s/ Terrence Anderson
                                      ------------------------------
                                      Terrence Anderson ,President

                                       27
<PAGE>

                                  EXHIBIT A-1

                             CONDITION OF BUILDING

BASE BUILDING
-------------
Extensive interior and exterior renovations have been completed
[** ILLEGIBLE**] and virtual image. The improvements provided as part of the
base building are summarized below.

Lobby Core
----------
A new central lobby core serving all three floors of the office includes:

        .  a first floor lobby with quality finishes and lobbies on the
           second and third floors to complement the first floor

        .  new restrooms at the core

        .  two new passenger elevators

        .  new ???? tower with "?????" ????? from first to second floor

        .  an existing freight elevator with outside access so that
           deliveries are not made through the first floor lobby.

Facade Improvements
-------------------
Restoration of the Art Deco facade that includes:

        .  new window frames and tinted glazing on all office windows

        .  additional windows to provide more light and views

        .  a new "Grand" entry leading into a first class lobby

Site Improvements
-----------------
        .  improved lighting

        .  upgraded parking lot including visitor parking, islands,
           improved circulation and re-striping for parking and
           circulation.

        .  a comprehensive site signage and graphics program

        .  enhanced landscaping especially in the area of new "Grand" entry.

        .  pedestrian and vehicular access to Spice Street

Building Systems
----------------
        .  new base building HVAC

        .  new base building electrical

        .  new restrooms at core

        .  new fire protection system

        .  new roofing

        .  existing stairs towers to be cleaned, painted and revamped
<PAGE>

                                   EXHIBIT B
                                   ---------

                           LANDLORD'S REQUIRED WORK

Landlord shall furnish and install, in accordance with approved Tenant's plans,
the following materials and work in the initial preparation of the Premises for
Tenant's occupancy. Landlord at Landlord's expense shall provide a "Turn-Key"
design-built tenant installation based on mutually acceptable design,
construction, mechanical and electrical plans to be prepared utilizing the
Building standard specifications (see Exhibit A). Landlord will provide three
(3)offices and conference rooms, a pantry, a reception area and the balance of
space as open plan.

Ceilings
-------

Ceiling will be suspended grid type with recessed 2'x 4'(reveal-edge) lay-
in-panels.

Electrical
----------

The base building electrical design and components layout is detailed on the
electrical constraction drawings. This includes the design and location of the
electric room on each floor. The following summary reviews the quality of major
electrical components in the tenant areas.

        Lights
        ------

        Electrical supplies for normal requirements will include: 2'x
        4' fluorescent light fixtures with paracube lenses. Allowance is one
        fixture for each 80 square feet of usable area. One of every twelve of
        these fixtures will be provided with emergency battery backup.

        Switches
        --------

        One single-pole wall-mounted light switch per 4,000 square feet of open
        area and one per office.

        Outlets
        -------

        One duplex wall receptacle per 500 square feet of open area and per code
        in office area.

        Exit Signs
        ----------

        Per code.

        Fire Alarm
        ----------

        Adequate devices for typical open office layout.
<PAGE>

        Exterior Wall
        -------------

        The exterior and common walls in the tenant office spaces will be
        insulated and finished with l/4" gypsum board over 2 l/2" metal studs.

        Partitions
        ----------

        Tenant Partitions -Partitions within premises will be 2 l/2" metal
        studs with one layer of l/2" gypsum board on each side. Partitions will
        extend from floor to the acoustic tile ceiling.

        Painting
        --------
        All wall surfaces shall receive two coats of latex paint with an
        eggshell finish using not more than three (3) readily available colors.
        Any doors shall receive two coats of clear polyurethane. All frames
        shall receive two coats of semi-gloss enamel to match room color.

        Doors
        -----

        Tenant entrance door will consist of a 3'6" x 7'10 1/2" x 1 3/4" thick
        solid oak and glass door with oak frame and 3" '6" wide sidelight with
        oak rail and tenant signage. Hardware will include 2 pair of butts and a
        standard duty lever handle locker and closer.

        Interior Doors
        --------------

        Doors within premises will be 3'0" x 7'0" x 1 3/4" solid core with plain
        slice oak veneer. Door frames will be pressed metal. Hardware will
        include 1 l/2" pair of butts, one standard duty brushed brass knob set
        and one door stop.

        Heating, Ventilating and Air  Conditioning
        ------------------------------------------

        Heating and air conditioning will be accomplished through the use of a
        variable air volume (VAV)system. Air will return through the ceiling
        plenum. Each floor will be provided with the number of separately
        controlled zones shown on the HVAC construction drawings.

        Floor Covering
        --------------

        Landlord agrees to prepare the floor and provide base building carpeting
        at an allowance of $14.00 per square yard.

        Automatic Sprinkler System
        --------------------------

        A wet sprinkler system will be installed with one head per 150 square
        feet of usable area per code.

        Sun Control Blinds
        ------------------

        All windows will have 3" perforated vertical blinds similar to Louver-
        Drape in type and color selected by Landlord.

<PAGE>

        Fiber Optics
        ------------

        There are three (3) fiber optic carriers to the Building; MCI, WorldCom,
        New England Optic Network (NEON); and Bell Atlantic. At Tenant's
        expense, Landlord will work with Tenant to provide two (2) diversified
        entrances for their fiber optic needs, preferably from different
        carriers. Subject to Landlord's approval, which approval shall not be
        unreasonably withheld or delayed, Tenant will be allowed to trench or
        otherwise install from the street a primary or secondary fiber optic
        service to the Building's telephone or equipment room, at Tenant's
        expense outside the Building to tie into local fiber optic network.

        SWITCH SPACE

        Landlord shall install a separate means of ingress and egress for the
        office space and the switch space. Within thirty (30) days of Lease
        Execution, Landlord at Landlord's expense shall:

                .       Deliver the premises demised and secure in broom clean
                        condition and ready for Tenant construction.

                .       Remove skylights and replace with waterproof sections of
                        roof.

                .       Provide/certify a minimum of 150 lbs. per square foot
                        floor loading to the demised premises provided,
                        however, that Tenant at Tenant's expense and subject to
                        Landlord's approval, shall be allowed td upgrade an area
                        (approximately 750 RSF) to a floor loading capacity of
                        300 lbs. per square foot.

                .       Landlord shall cause the structural components of the
                        Building and-the demised premises to comply with ADA and
                        local building life safety codes throughout the lease
                        Term.

                .       Provide main sprinkler loop to the demised premises.
                        Tenant at Tenant's expense will provide per-action valve
                        system.

                .       Provide tie-ins to Building life and safety systems.

                .       Provide 1200 amp service to Tenant. Tenant, at Tenant's
                        expense and subject to Landlord's approval, which
                        approval shall not be unreasonably withheld or delayed,
                        shall be responsible for providing all services and
                        equipment necessary to bring the services to the demised
                        premises.

                .       Tenant shall, at Tenant's expense, provide any
                        electrical and utility metering equipment.

                .       Provide pad space (10'x 10') for Tenant's gas emergency
                        generator and day tank and access to same from
                        designated platform.

                .       Provide access way for an electrical conduit from
                        generator to Tenant's service breaker as designated by
                        Landlord.

                                       3

<PAGE>

                .       Provide the right and access to install horizontal and
                        vertical conduit for fiber optics, subject to Landlord's
                        approval, which shall not be unreasonably withheld.

                                       4

<PAGE>

                                   EXHIBIT C
                                   --------

                             INTENTIONALLY OMITTED

                                       5
<PAGE>

                                   EXHIBIT D
                                   ---------

                              LANDLORD'S SERVICES

        Landlord shall cause the parking areas and driveways of the Lot to be
kept reasonably free and clear of snow, ice and refuse and shall cause the
landscaped areas (if any) of the Lot to be maintained in a reasonably attractive
appearance. Landlord shall also cause the parking areas of the Lot to be kept
lighted during hours of darkness to the extent reasonably required for the
business operations conducted upon the Lot.

        Landlord shall provide to the Building hot water for lavatory purposes
and cold water for drinking, lavatory and toilet purposes. Landlord shall also
provide to the Building elevators for the use of all tenants and the general
public. Programming of elevators (including, but not limited to, service
elevators) shall be as Landlord from time to time determines. Landlord shall
cause the common lobbies, corridors, stairways and lavatories within the
Building to be kept reasonably neat and clean and lighted to the extent required
by the business operations conducted within the Building. Landlord shall also
cause the common areas of the Building to be heated and air conditioned during
the heating and air conditioning seasons in a manner consistent with applicable
law and customary practice in Boston, Massachusetts. Landlord shall also provide
central heating, ventilating and air conditioning ("HVAC") service to the
office portion of the demised premises which shall include air conditioning in
the cooling season, and tempered air during the heating season, all during
normal business hours which are 7:00 am - 6:00 pm Monday through Friday and
8:00 am - 1:00 pm on Saturdays. Tenant agrees to pay an hourly surcharge for
HVAC service requested outside normal business hours. Finally, Landlord shall
provide janitorial service for the office space comprising part of the demised
premises. Subject to the provisions of Section (O) of Article X, Landlord agrees
that throughout the Term, Tenant shall have access to the demised premises,
twenty four (24) hours a day, seven (7) days a week and fifty two (52) weeks a
year.

Landlord shall provide on-site uniformed security guard service to the parking
lot, grounds and building entrances 24 hours per day, 365 days per year.
Landlord provides a cafeteria and exercise room.

Tenant may use the freight elevator without charge during Tenant's construction
of Initial Alterations and move-in period.

                                       1
<PAGE>

                                   EXHIBIT E
                                   ---------

                             RULES AND REGULATIONS

        1.  The sidewalks, paved and/or landscaped areas shall not be obstructed
or encumbered by Tenant or used for any purpose other than ingress and egress to
and from the demised premises. No merchandise, boxes or pallets may be stored by
Tenant outside of the demised premises and no cars, trucks or trailers may be
parked on the Lot overnight without the prior written consent of Landlord.

        2.  No sign, advertisement, notice or other lettering shall be
exhibited, inscribed, painted or affixed by Tenant on any part of the demised
premises or Building so as to be visible from outside the demised premises
without the prior written consent of Landlord. In the event of the violation of
this paragraph, Landlord may remove same without any liability, and may charge
the expense incurred in such removal to Tenant, as additional rent.

        3.  No awnings, curtains, blinds, shades, screens or other projections
shall be attached to or hung in, or used in connection with, any window of the
demised premises or any outside wall of the Building without the prior written
consent of Landlord. Such awnings, curtains, blinds, shades, screens or other
projections must be of a quality, type, design and color, and attached in the
manner, approved by Landlord.

        4.  The water and wash closets and other plumbing fixtures shall not be
used for any purposes other than those for which they were designed and
constructed, and no sweepings, rubbish, rags, acids, chemicals, process water,
cooling water or like substances shall be deposited therein. Said plumbing
fixtures and the plumbing system of the Building shall be used only for the
discharge of so-called sanitary waste. All damage resulting from any misuse of
said fixtures and/or plumbing system by Tenant or anyone claiming under Tenant
shall be borne by Tenant.

        5.  Tenant must, upon the Termination of its tenancy, return to Landlord
all locks, cylinders and keys to the demised premises and any offices therein.

        6.  Tenant shall, at Tenant's expense, provide artificial light and
electric current for the employees of Landlord and/or Landlord's contractors
while making repairs or alterations in the demised premises.

        7.  Tenant shall not make, or permit to be made, any unseemly or
disturbing odors or noises or disturb or interfere with occupants of the
Building or those having business with them, whether by use of any musical
instrument, radio, machine, or in any other way.

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

        9.  Tenant shall keep the demised premises free at all times of pests,
rodents and other vermin, and at the end of each business day Tenant shall place
for collection in the place or places provided therefor all trash and rubbish
then in the demised premises.

                                      1
<PAGE>

        10. Landlord reserves the right to rescind, alter, waive and/or
establish any rules and regulations, which, in its judgment, are necessary,
desirable or proper for its best interests and the best interests of the
occupants of the Building.

        1l. All of the work done by Tenant shall be done by such contractors,
labor and means so that, as far as may be possible, all work on the Property,
whether by Landlord or Tenant, shall be done without interruption on account of
strikes, work stoppages or similar causes of delay.

        12. The buildings of Hood Business Park are smoke free buildings, and
Tenant shall cause its employees and invitees who smoke to restrict such smoking
to areas designated as "smoking areas" by Landlord from time to time.

                                       2
<PAGE>

                                   EXHIBIT F

                            LEGAL DESCRIPTION OF LOT
PARCEL II

Being shown as Lot B on a plan entitled "Plan of Land in Boston, MASS.", dated
June 7, 1982 by Dana F. Perkins and Assoc., Inc., Civil Engineers and surveyors,
recorded with Suffolk County Registry of Deeds, Book 9971, Page 454.

Included within the bounds of said Lot B is registered land shown on Land Court
Plan No. 12912A, dated April 20, 1928, a copy of which is filed with the Suffolk
County Registry District of the Land Court with Certificate of Title No. 24288.

There is appurtenant to said Lot B all rights and easements as may exist of
record, insofar as the same are now in force and applicable to be exercised in
common with all others lawfully entitled thereto, including, without limitation,
those rights and easements set forth or referred to in the following deeds:
Deed from Boston and Maine Railroad to H.P. Hood & Sons, Inc., dated July 21,
1960, recorded with Suffolk County Registry of Deeds, Book 7493, Page 233; Deed
from David Massif, et al, Trustees of Massif Realty Trust to H.P. Hood & Sons,
Inc. dated December 19, 1963, recorded with Suffolk County Registry of Deeds,
Book 7810, Page 107; Deed from Boston and Maine Corporation to H.P. Hood &
Sons, Inc., dated September 9, 1969, recorded with Suffolk County Registry of
Deeds, Book 8310, Page 483; Deed from Whiting Milk Company, Inc. to H.P. Hood,
Inc., dated May 31, 1973, recorded with Suffolk County Registry of Deeds, Book
8631, Page 705; Deed from Boston and Maine Railroad to H.P. Hood & Sons, Inc.,
dated June 16, 1943, recorded with Suffolk County Registry of Deeds, Book 6040,
Page 584; Deed from Boston and Maine Railroad to H.P. Hood & Sons, Inc., dated
December 20, 1949, recorded with Suffolk County Registry of Deeds, Book 6572,
Page 369 and Deed from Boston and Maine Railroad to H.P. Hood & Sons, Inc. dated
May 26, 1953, recorded with Suffolk County Registry of Deeds, Book 6873, Page 2,
bounded and described as follows:

S 23 degrees 50'38" E by said Rutherford Avenue, 1143.99 feet to a point at land
of David Massif; thence turning and running

S 47 degrees 49'22" W by said land of Massif and by land of W.W.F. Paper
Corp., 716.04 feet to a point at land of B & M; thence turning and running

N 26 degrees 16'38" W by said land of B & M, 84.52 feet to a point; thence
turning and running

N 35 degrees 33'36" W still by said land of B & M, 134.90 feet to a point;
thence turning and running

N 30 degrees 10'18" W still by said land of B & M, 519.55 feet to a point;
thence turning and running

N 26 degrees 23'18" W still by said land of B & M, 51.62 feet to a point; thence
turning and running

N 30 degrees 32'31" W by said land of B & M, 344.11 feet to a point; thence
turning and running

N 49 degrees 53'49" E still by said land of B & M, 94.19 feet to a point; thence
turning and running

N 45 degrees 39'59" E still by said land of B & M, 170.84 feet to a point;
thence turning and running

N 49 degrees 55'29" E still by said land of B & M, 322.29 feet to a point;
thence turning and running

N 51 degrees 14'19" E still by said land of B & M, 259.17 feet to a point of
beginning.
<PAGE>

                                   EXHIBIT A

                     PLAN SHOWING LOCATION OF THE BUILDING

                                   [GRAPHIC]<PAGE>

                                                                   Exhibit 10.14

                               OFFICE SPACE LEASE

                                       for

                     400 HORSHAM ROAD, HORSHAM PENNSYLVANIA

                                 by and between

                       400 HORSHAM ROAD ASSOCIATES, L.P.
                                  (as Landlord)

                                       and

                           BROADVIEW NETWORKS, INC.
                                  (as Tenant)

                                 Date: 1/31/2000
<PAGE>

           THIS LEASE (the "Lease") is made the 31st day of January, 2000
between 400 HORSHAM ROAD ASSOCIATES, L.P. (herein referred to as "Landlord")
whose address is 1101 West DeKalb Pike, Suite 200, Wayne, Pennsylvania 19087 and
BROADVIEW NETWORKS, INC. (herein referred to as "Tenant"), a New York
corporation, whose address is 45-18 Court Square, Long Island City, NY 11101.

                                    PREAMBLE

                     BASIC LEASE PROVISIONS AND DEFINITIONS

           In addition to other terms elsewhere defined in this Lease, the
following terms whenever used in this Lease shall have only the meanings set
forth in this section, unless such meanings are expressly modified, limited or
expanded elsewhere herein.

1. ADDITIONAL RENT shall mean all sums in addition to Fixed Basic Rent payable
   ---------------
   by Tenant to Landlord or to third parties pursuant to the provisions of the
   Lease.

2. BROKER(S) shall mean Kelley & Associates, Inc. and Equis of New York.
   ---------

3. BUILDING shall mean 400 Horsham Road, Horsham, Pennsylvania as described on
   --------
Exhibit A hereto.
---------

4. BUILDING HOLIDAYS shall be those shown on Exhibit D.
   -----------------

5. COMMENCEMENT DATE shall mean, with respect to Phase One of the Premises, the
   -----------------
date this Lease is fully executed by the Landlord and Tenant and, with respect
to Phase Two of the Premises, the date the Landlord's Work, as defined in
Section 3(b) of the Lease, is substantially complete.

6. DEMISED PREMISES OR PREMISES shall be approximately twenty six thousand
   ----------------------------
(26,000) gross rentable square feet on the first floor of the Building as
designated on Exhibit A-l which includes an allocable share of the Common
              -----------
Facilities as defined in Section 2 which measurement shall be subject to final
measurement and agreement by the parties in accordance with 1996 BOMA standards
for multi-tenant office buildings. The Demised Premises shall be let to Tenant
in two (2) phases: Phase One shall consist of approximately 6,000 rentable
square feet of space and Phase Two shall consist of approximately 20,000
rentable square feet.

7. EXHIBITS shall be the following, attached to this Lease and incorporated
   --------
herein and made a part hereof:

                      Exhibit A        Location of Building
                      Exhibit A-l      Demised Premises
                      Exhibit B        Rules and Regulations
                      Exhibit C        Fiber Optic Work
                      Exhibit D        Building Holidays
<PAGE>

                      Exhibit E        Tenant Estoppel Certificate
                      Exhibit F        Janitorial Specifications

8. EXPENSE STOP shall mean Four Dollars ($4.00) per rentable square foot of the
   ------------
Premises.

9. FIXED BASIC RENT shall be calculated and payable as follows:
   ----------------

With respect to Phase One of the Premises:

                         Rate Per
          Rentable       Rentable        Yearly         Monthly
Months     Sq. Ft.       Sq. Foot         Rate        Installment
 l-6       6,000          $ 0.00          $0.00          $0.00
 7-12      6,000          $17.50       $105,000.00     $ 8,750.00
13-24      6,000          $18.00       $108,000.00     $ 9,000.00
25-36      6,000          $18.50       $111,000.00     $ 9,250.00
37-48      6,000          $19.00       $114,000.00     $ 9,500.00
49-60      6,000          $19.50       $117,000.00     $ 9,750.00
61-66      6,000          $20.00       $120,000.00     $10,000.00

With respect to Phase Two of the Premises:

                         Rate Per
         Rentable        Rentable        Yearly         Monthly
Months    Sq. Ft.        Sq. Foot         Rate        Installment
 l-3      20,000          $ 0.00          $0.00          $0.00
 4-12     20,000          $17.50       $350,000.00     $29,166.67
13-24     20,000          $18.00       $360,000.00     $30,000.00
25-36     20,000          $18.50       $370,000.00     $30,833.33
37-48     20,000          $19.00       $380,000.00     $31,666.67
49-60     20,000          $19.50       $390,000.00     $32,500.00
61-66     20,000          $20.00       $400,000.00     $33,333.33

10. OFFICE BUILDING AREA is as set forth on Exhibit A-l
    --------------------

11. PERMITTED USE shall be general office use and the installation and
    -------------
maintenance of equipment and facilities in connection with Tenant's
telecommunications business.

12. PROPORTIONATE SHARE shall mean a fraction, the numerator of which shall be
    -------------------
the total rentable square feet of the Premises, which figure is the gross
rentable square feet contained within the Premise and the denominator of which
shall be the total rentable square feet of the Building, which figure is 150,000
square feet.
<PAGE>

13. SECURITY DEPOSIT shall be none.
    ----------------

14. TARGET DATE with respect to Phase One of the Premises shall be immediately
    -----------
upon full execution of this Lease by the parties and with respect to Phase Two
of the Premises shall be sixty (60) days from the date Tenant delivers to
Landlord final approved plans for Landlord's Work.

15. TERM shall mean five (5) years and six (6) months from the date this Lease
    ----
is fully executed by the Landlord and Tenant plus the number of days which
remain in the calendar month in which such term expires (the "Term") unless
terminated or extended pursuant to any option or provision contained herein.
<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
    Section                                                                   Page
    -------                                                                   ----

<S> <C>                                                                      <C>
1.  Definitions .............................................................  1
2.  Premises ................................................................  1
3.  Completion of Premises ..................................................  1
4.  Term ....................................................................  2
5.  Use of Premises .........................................................  2
6.  Rent ....................................................................  3
7.  Insurance ...............................................................  6
8.  Repairs and Maintenance .................................................  7
9.  Utilities and Services ..................................................  8
10. Governmental Regulations ................................................  9
11. Signs ................................................................... 10
12. Alterations, Additions and Fixtures ..................................... 10
13. Mechanic's Liens ........................................................ 11
14. Landlord's Right of Entry ............................................... 12
15. Damage by Fire or Other Casualty ........................................ 12
16. Non-Abatement of Rent ................................................... 14
17. Indemnification ......................................................... 14
18. Condemnation ............................................................ 15
19. Quiet Enjoyment ......................................................... 16
20. Rules and Regulations ................................................... 16
21. Assignment and Subletting ............................................... 16
22. Tenant's Expansion/Relocation ........................................... 19
23. Subordination ........................................................... 19
24. Curing Tenant's Defaults ................................................ 20
25. Surrender ............................................................... 20
26. Defaults-Remedies ....................................................... 21
27. Conditions of Premises .................................................. 24
28. Hazardous Substances .................................................... 24
29. Recording ............................................................... 25
30. Broker's Commission ..................................................... 25
31. Notices ................................................................. 25
32. Irrevocable Offer, No Option ............................................ 26
33. Landlord Inability to Perform ........................................... 26
34. Survival ................................................................ 26
35. Corporate Tenants ....................................................... 27
36. Tenant Representations and Warranties ................................... 27
37. Waiver of Invalidity of Lease ........................................... 27
38. Security Deposit ........................................................ 27
39. Estoppel Certificate .................................................... 27
40. Rights Reserved by Landlord ............................................. 28
41. Miscellaneous ........................................................... 30
42. Additional Definitions .................................................. 31
43. Tenant's Right of First Refusal ......................................... 32
</TABLE>
<PAGE>

           For and in consideration of the covenants herein contained, and upon
the terms and conditions herein set forth, Landlord and Tenant, intending to be
legally bound, agree as follows:

           1. Definitions. The definitions set forth in the preceding Preamble
shall apply to the same capitalized terms appearing in this Lease Agreement.
Additional definitions are contained in Section 42 and throughout this Lease.

           2. Premises. Landlord hereby demises and leases the Premises to
Tenant and Tenant hereby leases and takes the Premises from Landlord for the
Term (as defined in Section 4) and upon the terms, covenants, conditions, and
provisions set forth in this Lease Agreement, including the Preamble (this
"Lease"). The Tenant's interest in the Premises as tenant shall include the
right, in common with Landlord and other occupants of the Building, to use
driveways, sidewalks, loading and parking areas, lobbies, hallways and other
facilities which are located within the Property (defined in Section 6) and
which are designated by Landlord from time to time for the use of all of the
tenants of the Building (the "Common Facilities"). Landlord shall provide Tenant
with four and one-half (4.5) unreserved parking spaces per one thousand rentable
square feet contained within the Premises at no additional cost or rental to
Tenant.

           3. Completion of Premises.

               a) Phase One of the Premises shall be delivered to Tenant on the
Target Date for Phase One in its "As-Is, Where-Is" condition as of the date of
this Lease and Landlord shall not be required to provide any tenant or other
improvements thereto except as otherwise provided herein. Commencing on the
Target Date for Phase One of the Premises, Tenant shall promptly construct and
install tenant improvements to the Premises in accordance with plans (the
"Plans") prepared by Tenant at Tenant's sole cost and expense and approved by
Landlord in Landlord's reasonable discretion. Landlord shall pay to Tenant a
tenant improvement allowance (the "Allowance") in the amount Twenty Dollars
($20.00) per rentable square foot of Phase One of the Premises for use by Tenant
in constructing and installing its tenant improvements therein. Tenant shall
complete the improvements set forth in the Plans and Landlord shall pay the
Allowance to Tenant in two (2) equal installments the first of which shall be
made on or before thirty (30) days after the Target Date for Phase One and the
second of which shall be made on or before sixty (60) days after the Target Date
for Phase One provided Tenant is not in default of its obligations hereunder
beyond any applicable notice and cure period and has constructed and installed
tenant improvements with a cost in an amount greater than or equal to the amount
of the Allowance being paid to Tenant at such time, as reasonably determined by
Landlord. All improvements and alterations for Phase One of the Premises, as
specified by the Plans or otherwise, shall be performed by Tenant in accordance
with the terms of this Lease.

               b) Phase Two of the Premises shall be completed in accordance
with the plans and specifications to be prepared by Tenant's architect, and
approved by Landlord and Tenant, Landlord shall complete the improvements set
forth in the plans
<PAGE>

and specifications ("Landlord's Work") at its sole cost and expense in an
amount not to exceed the sum of Twenty Dollars ($20.00) per rentable square foot
of Phase Two of the Premises. All necessary construction shall be commenced
promptly following Landlord's execution and acceptance of this Lease and shall
be substantially completed ready for use and occupancy by Tenant on the Target
Date for Phase Two as set forth in the Preamble; provided, however, that the
time for substantial completion of the Premises shall be extended for additional
periods of time equal to the time lost by Landlord or Landlord's contractors,
subcontractors or suppliers due to strikes or other labor troubles; delays in
Tenant's selection of materials, plans or specifications; governmental
restrictions and limitations; unavailability or delays in obtaining fuel, labor
or materials; war or other national emergency; accidents; floods; defective
materials; fire damage or other casualties; adverse weather conditions; the
inability to obtain building or use and occupancy permits; or any cause similar
or dissimilar to the foregoing which is beyond the reasonable control of
Landlord or Landlord's contractors, subcontractors or suppliers. As soon as
practicable after final approval of the plans for the Landlord's Work, Landlord
shall obtain and deliver to Tenant complete final and binding bids from at least
three (3) reputable contractors acceptable setting forth breakouts for all
components of the bid with all pertinent sub-contractor cost information.
Landlord shall request proposals from such contractors for lump sum contracts.
Landlord shall choose the contractor submitting the lowest bid unless Landlord
reasonably believes such contractor is unable to complete Landlord's Work in a
timely manner. Landlord's Work and Phase Two of the Premises shall be deemed
substantially completed when Tenant is in receipt of a Certificate of Occupancy
or Temporary Certificate of Occupancy (punchlist items excepted). In the event
Landlord's Work is not substantially complete on or prior to the Target Date for
Phase Two, then upon substantial completion of same, Tenant shall be entitled to
two (2) additional days of Rent abatement for each one (1) day of delay beyond
such Target Date until such work is substantially completed.

               c) All construction shall be done in a good and workmanlike
manner and shall comply at the time of completion with all applicable and lawful
laws, ordinances, regulations and orders of the federal, state, county or other
governmental authorities having jurisdiction thereof. In addition to the
Landlord's Work defined above, Landlord shall cooperate with Tenant in
connection with its installation and completion of the Fiber Optic Work set
forth on Exhibit C attached hereto and made a part hereof. Landlord shall be
obligated for the direct and actual costs of completion of the Fiber Optic Work
up to Fifty Thousand Dollars ($50,000.00) and Tenant shall be obligated for any
excess costs. The failure to complete Fiber Optic Work shall not delay the
Commencement Date for either Phase One or Phase Two of the Premises or in any
respect affect the validity or continuance of this Lease or any obligation of
Tenant hereunder or extend the Term of the Lease, whether or not within
Landlord's control, and Landlord shall not be subject to any liability to
Tenant.

           4. Term. [Intentionally Deleted].

           5. Use of Premises. Tenant shall occupy the Premises throughout the
Term and shall use the same for, and only for, the Permitted Use specified in
the Preamble. The
<PAGE>

Building is designed to normal building standards for floor-loading capacity.
Tenant shall not use the Premises in such ways which, in Landlord's reasonable
judgment, exceed such load limits.

           6. Rent. Unless otherwise specifically requested by Landlord in
writing at any time, Fixed Basic Rent, Additional Rent and any other rent or
other sums due under this Lease (hereunder collectively referred to as
Rent) shall be paid and delivered to Landlord's property manager, if any, as
agent for Landlord, in the amounts, time and manner more particularly provided
in this Lease.

               a. Fixed Basic Rent. Commencing on the Commencement Date with
respect to Phase One and Phase Two of the Premises as set forth in the Preamble,
Tenant shall pay, throughout the Term, Fixed Basic Rent with respect to Phase
One and Phase Two of the Premises, as applicable, in the amount specified in the
Preamble, without notice or demand and without setoff or deduction, except as
otherwise provided herein in equal monthly installments equal to one-twelfth of
the Fixed Basic Rent (specified as Monthly Installments in the Preamble), in
advance, on the first day of each calendar month during the Term. If the
Commencement Date falls on a day other than the first day of a calendar month,
the Fixed Basic Rent shall be apportioned on a per diem basis for the period
between the applicable Commencement Date and the first day of the first full
calendar month in the Term and such apportioned sum shall be paid on the
applicable Commencement Date.

               b. Additional Rent. Commencing on January 1, 200l Tenant shall
pay to Landlord, as Additional Rent, in the manner more particularly set forth
below, Tenant's Proportionate Share of Annual Operating Costs (as defined below)
for the Property to the extent same exceeds the Expense Stop per rentable square
foot of the Premises:

                    i) Annual Operating Costs. The term "Annual Operating Costs"
shall mean all costs Landlord incurs from owning, operating and maintaining the
Building and the lot or tract of land on which it is situated (the "Property").
Annual Operating Costs shall include, by way of example rather than limitation:
insurance costs, including premiums; fees; Impositions (defined below); costs
for repairs, maintenance and service contracts; management fees; landscaping;
snow removal; governmental permits fees; costs of compliance with governmental
orders and regulations; administrative and overhead expenses; costs of
furnishing water, sewer, electricity, gas, fuel, and other utility services, for
use in Common Facilities of the Building and Property; and the cost of
janitorial service and trash removal; EXCLUDING, however, from Annual Operating
Costs the following: costs which are treated as capital under generally accepted
accounting principles; mortgage debt or ground rents incurred by Landlord as
owner of the Property; income, excess profits, corporate capital stock or
franchise tax imposed or assessed upon Landlord, unless such tax or any similar
tax is levied or assessed, in lieu of all or any part of any currently existing
Imposition or an increase in any currently existing Imposition; but only to the
extent of such substitution and calculated as if the Property was the sole asset
of Landlord, leasing commissions, accountants', consultants' or attorneys' fees,
costs and disbursement and other expenses

<PAGE>

incurred in connection with negotiations or disputes with tenants or prospective
tenants or associated with the enforcement of any leases or the defense of
Landlord's title to or interest in the Building in connection with any
proceedings involving real property taxes other than disputes regarding tax
assessment and reduction of real property taxes; costs of construction of the
Building and related facilities and correction of defects in construction of the
Building (including permit, license and inspection fees); costs of any items or
services sold or provided to tenants (including Tenant) for which Landlord is
entitled to be reimbursed by such tenants or which are not generally provided to
all tenants of the Building; fees and higher interest charges caused by
Landlord's refinancing the Building; all repairs to the interior of the Building
of a structural nature (not made necessary by unusual use by Tenant); costs
incurred due to violation by Landlord or any tenant of the terms and conditions
of any lease; overhead and profit increment paid to subsidiaries or affiliates
of Landlord, or to any party as a result of a noncompetitive selection process,
for management or other services on or to the Building or for supplies or other
materials, to the extent that the costs of such services, supplies or materials
exceed the costs that would have been paid had the services, supplies or
materials been provided by unaffiliated parties on a competitive basis; general
overhead and administrative expenses except salaries of on-site property
manager, management secretary and maintenance man; any compensation paid to
clerks, attendants or other persons in commercial concessions operated by
Landlord, rentals and other related expenses incurred in leasing air
conditioning systems, elevators or other equipment ordinarily considered to be
for a capital nature, except equipment which is used in providing janitorial
services and which is not affixed to the Building; all items and services for
which Tenant reimburses Landlord or pays third persons or which Landlord
provides selectively to one or more tenants or occupants of the Building (other
than Tenant) without reimbursement; commissions, advertising, and promotional
expenditures. "Impositions" shall mean all levies, taxes, assessments, charges,
imposts, and burdens, of whatever kind and nature, ordinary and extraordinary,
which are assessed or imposed during the Term by any federal, state or municipal
government or public authority or under any law, ordinance or regulation thereof
or pursuant to any recorded covenants or agreements upon or with respect to the
Property or any part thereof, any improvements thereto, any personal property
necessary to the operation thereof and owned by Landlord or this Lease.

                    ii) Estimated Payments - Expense Statement and
Reconciliation.

                    (1) Landlord shall submit to Tenant as soon as reasonably
possible after the beginning of each calendar year of the Term, the following:

                    (a) a statement setting forth (i) the Annual Operating Costs
for the previous calendar year of the Term and (ii) a calculation of Tenant's
Proportionate Share of the increase in the Annual Operating Costs over the
Expense Stop for the previous calendar year (the "Expense Statement"); and

                    (b) a statement of Landlord's good faith estimate of the
Annual Operating Costs for the current calendar year and a calculation of
Tenant's Proportionate Share of the increase in the Annual Operating Costs over
the Expense Stop
<PAGE>

for the current calendar year ("Tenant's Estimated Share").

                    (2) Beginning with the next installment of Fixed Basic Rent
due after the delivery of the aforesaid statements to Tenant, Tenant shall pay
to Landlord, on account of its Proportionate Share of the increase in the Annual
Operating Costs over the Expense Stop, the following:

                        (a) a sum equal to the product of one-twelfth (l/12) of
Tenant's Estimated Share and the number of calendar months elapsed during the
current calendar year up to and including the month payment is made, plus any
amounts due from Tenant to Landlord on account of Annual Operating Costs for any
prior period(s) of time, less

                        (b) a sum equal to the amount, if any, by which the sum
of all payments made by Tenant to Landlord on account of Annual Operating Costs
for the previous calendar year exceed those actually specified in the Expense
Statement.

                    (3) On the first day of each succeeding calendar month until
such time as Tenant receives a new Expense Statement and statement of Tenant's
Estimated Share, Tenant shall pay to Landlord, on account of its Proportionate
Share of Annual Operating Costs, one-twelfth (l/12) of the then current Tenant's
Estimated Share. Any payment due from Tenant to Landlord, or any refund due from
Landlord to Tenant, on account of Annual Operating Costs not yet determined as
of the expiration of the Term shall be made within thirty (30) days after
submission to Tenant of the next Expense Statement.

               c) Disputes. Unless Tenant, within ninety (90) days after any
statement of Additional Rent is furnished, shall give notice to Landlord that
Tenant disputes said statement, specifying in detail the basis for such dispute,
each statement furnished to Tenant by Landlord under any provision of this
Section shall be conclusively binding upon Tenant as to the particular
Additional Rent due from Tenant for the period represented thereby; provided,
however, that additional amounts due may be required to be paid by any
supplemental statement furnished by Landlord. Tenant shall have the right at
reasonable times to examine the records used in making the aforestated
determinations, upon written notice in advance; provided, however, such disputed
amount shall have been paid by Tenant to Landlord. In the event any such
examination shall reveal an adverse variance in excess of 10% of the total
operating expenses of which Tenant is required to pay their Proportionate Share,
Landlord shall reimburse Tenant for the reasonable cost of such examination
together with the amount of Tenant's overpayment within thirty (30) days after
demand. Tenant shall make all payments of Additional Rent without delay and
regardless of any pending dispute over the amount of Additional Rent that is due
in accordance with the statements furnished by Landlord.

               d) Independent Covenant; Survival. Tenant's covenant to pay Rent
is independent of any other covenant, agreement, term or condition of this
Lease. Without limitation of any obligation of Tenant under this Lease which
shall survive the expiration
<PAGE>

of the Term, the obligation of Tenant to pay Rent shall survive the expiration
of the Term.

           7. Insurance.

               a) Liability. Tenant, at Tenant's sole cost and expense, shall
maintain and keep insurance in effect throughout the Term against liability for
bodily injury (including death) and property damage in or about the Premises or
the Property under a policy of Commercial general public liability insurance,
with such limits as to each as may be reasonably required by Landlord from time
to time, but not less than $1,000,000 for each person and $2,000,000 in the
aggregate for bodily injury (including death) to more than one (1) person and
$1,000,000 for property damage. The policies of commercial general public
liability insurance shall name Landlord (and if requested, any mortgagee of
Landlord) as an additional party. Each such policy shall provide that it shall
not be cancelable without at least thirty (30) days prior written notice to
Landlord and to any mortgagee named in an endorsement thereto and shall be
issued by an insurer and in a form reasonably satisfactory to Landlord. At least
ten (10) days prior to the Commencement Date, and thereafter upon Landlord's
request, a certificate of insurance shall be delivered to Landlord proving
compliance with the foregoing requirements. If Tenant shall fail, refuse or
neglect to obtain or to maintain any insurance that it is required to provide or
to furnish Landlord with satisfactory evidence of coverage on any such policy
within 5 days after demand, Landlord shall have the right to purchase such
insurance. All payments made by Landlord for such insurance shall be recoverable
by Landlord from Tenant, together with interest thereon, as Additional Rent
promptly within 10 days after demand. Notwithstanding anything contained herein
to the contrary, Tenant may self-insure all of its personal property situated
within the Premises against property damage and destruction. Tenant's insurance
may be provided under blanket insurance policies.

               b) Waiver of Subrogation. The parties to this Lease each release
the other, to the extent of the releasing party's insurance coverage, from any
and all liability for any loss or damage covered by such insurance which may be
inflicted upon the property of such party even if such loss or damage shall be
brought about by the fault or negligence of the other party, its agents or
employees. If any policy does not permit such a release of liability and a
waiver of subrogation, and if the party to benefit therefrom requests that such
a waiver be obtained, the other party agrees to obtain an endorsement to its
insurance policies permitting such waiver of subrogation if it is available. If
an additional premium is charged for such waiver, the party benefiting therefrom
agrees to pay the amount of such additional premium promptly upon demand. In the
event a party is unable to obtain such a waiver, it shall immediately notify the
other party of its inability. In the absence of such notifications, each party
shall be deemed to have obtained such waiver of subrogation. Notwithstanding
anything to the contrary contained in this Lease, Landlord shall have no
interest in any insurance proceeds Tenant receives for Tenant's property (not
purchased, installed or otherwise paid for using the Allowance) and Landlord
shall sign all documents which are necessary or appropriate in connection with
the settlement of any claim or loss by Tenant. Tenant's policies shall not be
<PAGE>

contributing with or in excess of any coverage which Landlord shall carry on the
Building.

               c) Increase of Premiums. Tenant will not do anything or fail to
do anything or permit anything to be done which will cause the cost of
Landlord's insurance to increase or which will prevent Landlord from procuring
insurance (including but not limited to public liability insurance) from
companies, and in a form, satisfactory to Landlord. If any breach of this
subsection (c) by Tenant shall cause the rate of fire or other insurance to be
increased, Tenant shall pay the amount of such increase as Additional Rent
promptly upon demand. Notwithstanding anything to the contrary contained in this
Lease, Landlord represents and warrants to Tenant that Tenant's use of the
Premises for the purposes specified herein will not in and of itself violate
Landlord's insurance policies which shall be in effect immediately prior to the
beginning of the Term of this Lease nor increase the premiums therefor.

           8. Repairs and Maintenance.

               a) Tenant shall, throughout the Term and at Tenant's sole cost
and expense, keep and maintain the Premises in a neat and orderly condition;
and, upon expiration of the Term, Tenant shall leave the Premises in good order
and condition, ordinary wear and tear, damage by fire or other casualty alone
excepted, and for that purpose and except as stated, Tenant will make all
necessary non-structural repairs and replacements. Tenant shall not permit any
waste, damage or injury to the Premises. Tenant shall not use or permit the use
of any portion of the Common Facilities for other than their intended use as
specified by the Landlord from time to time.

               b) Landlord shall, promptly throughout the Term, make all
necessary repairs to the structural elements of the Premises, the building, and
other improvements located on the Property; provided, however, that Landlord
shall have no responsibility to make any repairs unless and until Landlord
receives written notice of the need for such repair. Landlord shall keep and
maintain all Common Facilities of the Property and any sidewalks, parking areas,
curbs and access ways adjoining the Property in a clean and orderly condition,
free of accumulation of dirt and rubbish and shall keep and maintain all
landscaped areas within the Property in a neat and orderly condition.
Notwithstanding anything to the contrary contained herein, Landlord shall be
responsible for maintaining and repairing the life, fire, and safety systems and
the points of connection thereto to the Premises, and the costs of same shall be
included in Annual Operating Costs.

               c) Notwithstanding the foregoing, repairs and replacement to the
Premises and the Property arising out of or caused by Tenant's specific use,
specific manner of use or occupancy of the Premises, by Tenant's installation of
alterations, additions, improvements, trade fixtures or equipment in or upon the
Premises or by any act or omission of Tenant or any employee, agent, contractor
or invitee (while on the Premises) of Tenant shall be made at Tenant's sole cost
and expense and Tenant shall pay Landlord the reasonable cost of any such repair
or replacement, as Additional Rent, within 15 days after demand.
<PAGE>

           9. Utilities and Services.

               a) Landlord shall furnish the Premises with electricity, heating
and air conditioning for the normal use and occupancy of the Premises as general
offices between 8:00 a.m. and 6:00 p.m., Monday through Friday, of each week
during the Term (Building Holidays excepted). Tenant agrees to pay as Additional
Rent all charges for electricity, light, heat or other utility used by Tenant at
the Premises. A separate submeter has been installed and Tenant shall pay for
the consumption of such utilities based upon its metered usage. If no meter is
installed, Tenant shall pay its Proportionate Share of any utility charges
covering the Demised Premises and the remainder of the Building. Tenant shall
pay all bills for separately metered utility usage within ten (10) days after
receipt thereof, and any non-payment or late payment of such utility bills shall
be deemed a default under the terms of this Lease. All charges for repairs of
any meters servicing the Premises shall be payable by Tenant as Additional Rent
and shall be paid when the same shall become due. Notwithstanding anything to
the contrary contained in this Lease, if necessary, Landlord shall upgrade the
electric service to the Building in order to provide the Premises with 400 amps,
which upgrade shall be done at Landlord's sole cost and expense.

               b) Within the Common Facilities of the Building, Landlord shall
furnish reasonably: (i) adequate electricity, (ii) hot and cold water, (iii)
lavatory supplies, (iv) automatically operated elevator service, (v) normal and
customary cleaning services (on a five-day a week basis) after business hours,
(vi) heat and air conditioning in season, (vii) landscaping, (viii) parking lot
maintenance, (ix) common area maintenance and (x) snow and ice removal. Tenant
shall be responsible for its Proportionate Share of the cost of such services in
accordance with Section 6(b) hereof. Landlord shall provide janitorial service
to the Premises, five days per week, after regular business hours, in accordance
with the janitorial specifications attached hereto as Exhibits F, and the costs
of such service will be passed through to Tenant as set forth in Section 6.

               c) Except as otherwise expressly provided herein, Landlord shall
not be liable for any damages to Tenant resulting from the quality, quantity,
failure, unavailability or disruption of any services beyond the reasonable
control of Landlord and the same shall not constitute a termination of this
Lease or an actual or constructive eviction or entitle Tenant to an abatement of
rent. Landlord shall not be responsible for providing any services not
specifically provided for in this Lease. Notwithstanding anything to the
contrary contained herein, in the event there is any failure or defect in
service furnished to the Premises by Landlord's direct control (as opposed to a
public service utility company) or Landlord determines to make any repairs,
additions, alterations, replacements, decorations or improvements in the
Building or the Demised Premises, and Tenant shall be unable for at least
seventy-two (72) hours to operate its business in the Premises in substantially
the same manner as such business was operated prior to such interruption, the
Fixed Basic Rent and Additional Rent shall be reduced on a per diem basis in
their proportion in which the area of the untenantable portion of the Premises
(i.e., the portion of the Premises in which Tenant is unable to operate its
<PAGE>

business in substantially the same manner as such business was operated prior to
such interruption) bears to the total area of the Premises, for each day
subsequent to the aforesaid seventy-two (72) hour period that such portion of
the Premises remains unusable. If any such interruption continues for a period
in excess of thirty (30) days, Tenant shall have the right to terminate this
Lease upon notice to Landlord. Tenant, its agents, employees and licensees shall
have access to the premises 24 hours per day, 7 days per week.

            10. Governmental Regulations.

               a) Landlord and Tenant shall comply with all laws, ordinances,
notices, orders, rules, regulations and requirements of all federal, state and
municipal government or any department, commission, board of officer thereof, or
of the National Board of Fire Underwriters or any other body exercising similar
functions, relating to the Premises or to the use or manner of use of the
Property. Tenant shall not knowingly do or commit, or suffer to be done or
committed anywhere in the Building, any act or thing contrary to any of the
laws, ordinances, regulations and requirements referred to in this Section.
Tenant shall give Landlord prompt written notice of any accident in the Premises
and of any breakage, defect or failure in any of the systems or equipment
servicing the Premises or any portion of the Premises.

               b) Tenant shall pay its Proportionate Share of the cost of
capital improvements which Landlord shall install or construct in compliance
with governmental requirements which take effect after the commencement of the
Term hereof. Tenant's Proportionate Share shall be determined based upon the
estimated life of the capital investment item, determined by Landlord in
accordance with generally accepted accounting principles, and shall include a
cost of capital funds adjustment equal to the rate of Interest on the
unamortized portion of all such costs. Tenant shall only have to pay for the
portion of the useful life of the capital improvement which falls within the
Term. Tenant shall thus make payments in equal annual installments for such
capital improvements until the Term expires or until the cost of the improvement
has been fully paid for, whichever first occurs; such payments shall be computed
by Landlord at the time of installation of the capital improvement in the same
manner as Landlord makes computations of Tenant's share of the Annual Operating
Costs pursuant to Section 6(b)(ii). Landlord represents and warrants that, as of
the Commencement Date, the Premises and all structural parts thereof, including,
without limitation, the foundation, roof, exterior walls, plumbing, electrical
and other mechanical systems (a) will meet and comply with all federal, state
and local laws, ordinances and regulations and all handicapped accessibility
standards, including, without limitation, those promulgated under the Americans
With Disabilities Act ("ADA"), and (b) will be in good, workable and sanitary
order, condition, and repair. Landlord shall correct any latent defects promptly
after Tenant notifies Landlord of any such defect. Notwithstanding anything to
the contrary contained in this Lease, Landlord represents and warrants to the
Tenant that (i) Tenant's Permitted Use shall not in and of itself violate any of
the provisions of this Lease or the provisions of any grant, lease, or mortgage
to which this Lease is subordinate and (ii) Tenant's use of the Premises for the
Permitted Use will not in and of
<PAGE>

itself violate Landlord's insurance policies which shall be in effect
immediately prior to the commencement of the Term of this Lease nor increase the
premiums therefor.

               c) Tenant shall pay all taxes imposed upon Tenant's furnishings,
trade fixtures, equipment or other personal property.

           11. Signs. Except for signs which are located wholly within the
interior of the Premises and which are not visible from the exterior of the
Premises, Tenant shall not place, erect, maintain or paint any signs upon the
Premises or the Property unless the design of such signs are approved by
Landlord in writing which approval may be withheld in Landlord's sole
discretion. Tenant shall be entitled to Building standard signage and to have
its name and logo placed on the monument sign located at the Property. Tenant
shall be solely responsible for all costs and expenses associated with the
erection of any signs upon the Premises and shall be obligated to obtain and
provide to Landlord any and all necessary permits prior to the placement or
erection of such signs.

           12. Alterations, Additions and Fixtures.

               a) Tenant shall have the right to install in the Premises any
trade fixtures; provided, however, that no such installation and no removal
thereof shall be permitted which affects any structural component of the
Building or Premises and that Tenant shall repair and restore any damage or
injury to the Premises or the Property caused by installation or removal.

               b) Subsequent to Tenant's initial alterations, Tenant shall not
make or permit to be made any alterations, improvements or additions to the
Premises or Property without on each occasion first presenting plans and
specifications to Landlord and obtaining Landlord's prior written consent, which
shall not be unreasonably withheld or delayed, but may be conditioned upon
compliance with reasonable requirements of Landlord including, without
limitation, the filing of mechanics' lien waivers by Tenant's contractors and
the submission of written evidence of adequate insurance coverage naming
Landlord as an additional insured thereunder. If Landlord consents to any
proposed alterations, improvements or additions or Tenant's contractor performs
any of the work identified in Section 3 of this Lease Agreement, then Tenant
shall make the proposed alterations, improvements and additions at Tenant's sole
cost and expense provided that: (i) Tenant supplies any necessary permits; (ii)
such alterations and improvements do not, in Landlord's judgment, impair the
structural strength of the Building or any other improvements or reduce the
value of the Property; (iii) Tenant takes or causes to be taken all steps that
are otherwise required by Section 13 of this Lease and that are required or
permitted by law in order to avoid the imposition of any mechanic's, laborer's
or materialman's lien upon the Premises or the Property; (iv) Tenant uses a
contractor reasonably approved by Landlord; (v) the occupants of the Building
and of any adjoining real estate owned by Landlord are not annoyed or disturbed
by such work; (vi) the alterations, improvements or additions shall be installed
in accordance with the approved plans and specifications and completed according
to a construction schedule reasonably approved by Landlord; and (vii) Tenant
provides insurance of the types and
<PAGE>

coverage amounts required by Landlord. Any and all alterations, improvements and
additions to the Premises which are constructed, installed or otherwise made by
Tenant shall be the property of Tenant until the expiration or sooner
termination of this Lease; at that time all such alterations and additions shall
remain on the Premises and become the property of Landlord without payment by
Landlord unless, upon the termination of this Lease, Landlord instructs Tenant
in writing to remove the same in which event Tenant will remove such
alterations, improvements and additions, and repair and restore any damage to
the Property caused by the installation or removal. Notwithstanding anything to
the contrary contained in this Lease, Landlord may withhold its approval to any
proposed alterations, additions or improvements to the Premises (subsequent to
Tenant's initial alterations) in its absolute and sole discretion with respect
to any such alteration, addition or improvement which Landlord determines
involves any modification to the Building's exterior or its structural,
electrical, mechanical or plumbing systems, or any components thereof.
Notwithstanding anything to the contrary contained in this Lease, upon the
expiration or sooner termination of the Term of this Lease, Tenant shall not be
required to restore the Premises to its condition prior to the making of any
alteration permitted under this Section 12(b), except if and to the extent that
subsequent to Tenant's initial alterations to prepare the Premises for Tenant's
initial occupancy, such restoration is made an express condition of Landlord's
consent to such alteration. Notwithstanding anything to the contrary contained
in this Lease, Tenant shall have the right, and is hereby granted a license for
such purpose, to use such portions of the common areas of the Building which are
necessary or desirable to supports its intended use of the Premises, including,
without limitation, the right to tie into and/or connect with the vents, pipes,
ducts and conduits of the Building in connection with Tenant's initial
alterations to prepare the Premises for Tenant's opening for business and the
providing of utility service to the Premises provided Tenant gives Landlord
notice of same and does not interfere with any other tenant's use of the
Building or their respective premises.

           13. Mechanic's Liens. Tenant shall promptly pay any contractors and
materialmen who supply labor, work or materials to Tenant at the Premises or the
Property so as to minimize the possibility of a lien attaching to the Premises
or the Property. Tenant shall take all steps permitted by law in order to avoid
the imposition of any mechanic's, laborer's or materialman's lien upon the
Premises or the Property. Should any such lien or notice of lien be filed for
work performed for Tenant other than by Landlord, Tenant shall cause such lien
or notice of lien to be discharged of record by payment, deposit, bond or
otherwise within thirty (30) days after the filing thereof or after Tenant's
receipt of notice thereof, whichever is earlier, regardless of the validity of
such lien or claim. If Tenant shall fail to cause such lien or claim to be
discharged and removed from record within such thirty (30) day period, then,
without obligation to investigate the validity thereof and in addition to any
other right or remedy Landlord may have, Landlord may, but shall not be
obligated to, contest the lien or claim or discharge it by payment, deposit,
bond or otherwise; and Landlord shall be entitled to compel the prosecution of
an action for the foreclosure of such lien by the lienor and to pay the amount
of the judgment in favor of the lienor with interest and costs. Any amounts so
paid by Landlord and all costs and expenses including, without limitation,
reasonable attorneys' fees incurred by Landlord in connection therewith,
together with Interest from
<PAGE>

the respective dates of Landlord's making such payment or incurring such cost or
expense, which shall constitute Additional Rent payable hereunder promptly upon
demand therefor. Nothing in this Lease is intended to authorize Tenant to do or
cause any work or labor to be done or any materials to be supplied for the
account of Landlord, all of the same to be solely for Tenant's account and at
Tenant's risk and expense. Further, notwithstanding anything to the contrary
contained in this Lease, nothing contained in or contemplated by this Lease
shall be deemed or construed in any way to constitute the consent or request by
Landlord for the performance of any work or services or the furnishing of any
materials for which any lien could be filed against the Premises or the Building
or the Property or any part of any thereof, nor as giving Tenant any right,
power or authority to contract or permit the performance of any work or services
or the furnishing of any materials for which any lien could be filed against the
Premises, the Building, the Property or any part of any thereof. Throughout this
Lease the term "mechanic's lien" is used to include any lien, encumbrance or
charge levied or imposed upon the Premises or the Property or any interest
therein or income therefrom on account of any mechanic's, laborer's or
materialman's lien or arising out of any debt or liability to or any claim or
demand of any contractor, mechanic, supplier, materialman or laborer due to work
done for or materials supplied to Tenant (other than Landlord's Work) and shall
include without limitation any mechanic's notice of intention given to Landlord
or Tenant, any stop order given to Landlord or Tenant, any notice of refusal to
pay naming Landlord or Tenant and any injunctive or equitable action brought by
any person entitled to any mechanic's lien.

           14. Landlord's Right of Entry.

               a) Tenant shall permit Landlord and the authorized
representatives of Landlord and of any mortgagee or any prospective mortgagee to
enter the Premises at all reasonable times, upon at least 24 hours prior notice
(which may be oral) to Tenant, for the purpose of (i) inspecting the Premises or
(ii) making any necessary repairs to the Premises or to the Building and
performing any work therein. During the progress of any work on the Premises or
the Building, Landlord will attempt not to inconvenience Tenant, but shall not
be liable for inconvenience, annoyance, disturbance, loss of business or other
damage to Tenant by reason of making any repair or by bringing or storing
materials, supplies, tools and equipment in the Premises during the performance
of any work, except as otherwise expressly provided herein and the obligations
of Tenant under this Lease shall not be thereby affected in any manner
whatsoever.

               b) Landlord shall have the right at all reasonable times to, with
prior notice to Tenant, enter and to exhibit the Premises for the purpose of
inspection or showing the Premises in connection with a sale or mortgage and,
during the last six (6) months of the Term, to enter upon and to exhibit the
Premises to any prospective tenant.

           15. Damage by Fire or Other Casualty.

               a) If the Premises or Building is damaged or destroyed by fire or
other casualty, Tenant shall promptly notify Landlord whereupon Landlord shall,
subject to the
<PAGE>

consent of Landlord's present or future mortgagee and to the conditions set
forth in this Section 15, repair, rebuild or replace such damage and restore the
Premises to substantially the same condition as the Premises were in immediately
prior to such damage or destruction; provided, however, that Landlord shall only
be obligated to restore such damage or destruction to the extent of the proceeds
of fire and other extended coverage insurance policies. Notwithstanding anything
to the contrary contained in this Lease, if the Premises is damaged or destroyed
by fire or any casualty which cannot, despite diligent, good faith efforts be
repaired or restored within one hundred eighty (180) days following the date on
which such damage occurs, then Tenant or Landlord may elect to terminate this
Lease effective as of the date of such damage or destruction. Within thirty (30)
days after the date of such damage, the parties shall determine how long the
repair and restoration will take. After that determination has been made, if the
determination is that the restoration will take more than one hundred eighty
(180) days to complete, Tenant and Landlord shall have a period of thirty (30)
days to terminate this Lease by giving written notice to the other. If neither
party elects to terminate this Lease as provided herein, then Landlord shall,
subject to the provisions of this Section, promptly commence and diligently
pursue to completion the repair of such damage so that the Premises are restored
to a condition of similar quality, character and utility for Tenant's purposes.
If the Premises are not substantially repaired and restored within two hundred
and forty (240) days of the date of the damage, Tenant may cancel this Lease at
any time before Landlord substantially completes the repairs and delivers the
restored Premises to Tenant. If Tenant does not so terminate, Landlord shall
continue to restore the Premises. In the event of termination, Landlord shall
return any prepaid Fixed Basic Rent, Additional Rent and any other prepaid
amounts to Tenant within thirty (30) days from the date of termination of this
Lease. If any damage or destruction occurs to the Premises during the last year
of the Term and the cost to repair the damage exceeds Five Hundred Thousand
Dollars ($500,000.00) either Landlord or Tenant may terminate this Lease upon
giving the other party thirty (30) days written notice; provided, however, that
if Landlord notifies Tenant that it wishes to terminate this Lease, then Tenant
may, if it has not already done so, exercise its right to extend the term of the
Lease under Rider A, whereupon Landlord's election to terminate shall be null
and void. If Landlord is required to repair or restore the Premises under any
provision of this Article and Tenant's use of the Premises is affected, then
until Landlord completes such repair or restoration, Fixed Basic Rent,
Additional Rent and all other charges payable by Tenant hereunder shall abate in
their entirety, unless Tenant remains in possession of the Premises, in which
event such rent and other charges shall abate based on the portion of the
Premises which is not being used by Tenant.

               b) The repair, rebuilding or replacement work shall be commenced
promptly and completed with due diligence, taking into account the time required
by Landlord to effect a settlement with, and procure insurance proceeds from,
the insurer, and for delays beyond Landlord's reasonable control.

               c) The net amount of any insurance proceeds recovered by reason
of the damage or destruction of the Building (meaning the gross insurance
proceeds excluding proceeds received pursuant to a rental coverage endorsement
and the cost of adjusting the
<PAGE>

insurance claim and collecting the insurance proceeds) shall be applied towards
the cost of restoration. Notwithstanding anything to the contrary in this Lease
Agreement, if in Landlord's reasonable opinion the net insurance proceeds will
not be adequate to complete such restoration, Landlord shall have the right to
terminate this Lease and all the unaccrued obligations of the parties hereto by
sending a written notice of such termination to Tenant specifying a termination
date no less than ten (10) days after its transmission; provided, that Landlord
terminates all other office Leases in the Building affected by such casualty. If
the net insurance proceeds are more than adequate, the amount by which the net
insurance proceeds exceed the cost of restoration will be retained by Landlord
or applied to repayment of any mortgage secured by the Premises.

               d) Landlord's obligation or election to restore the Premises
under this Section shall be subject to the terms of any present or future
mortgage affecting the Premises and to the mortgagee's consent if required in
the mortgage and shall not, in any event, include the repair, restoration or
replacement of the fixtures, improvements, alterations, furniture or any other
property owned, installed, made by, or in the possession of Tenant.

               e) Landlord shall maintain insurance against loss or damage to
the Building by fire and such other casualties as may be included within fire
and extended coverage insurance or all-risk insurance, together with a rental
coverage endorsement or other comparable form of coverage. If Tenant is
dispossessed of the Premises due to fire or other casualty, Tenant will receive
an abatement of its Fixed Basic Rent during the period Tenant is dispossessed to
the extent of payments received by Landlord from the carrier providing the
rental coverage endorsement.

           16. Non-Abatement of Rent. Except as otherwise expressly provided in
this Lease there shall be no abatement or reduction of the Fixed Basic Rent,
Additional Rent or other sums payable hereunder for any cause whatsoever and
this Lease shall not terminate, nor shall Tenant be entitled to surrender the
Premises, in the event of fire, casualty or condemnation or any default by
Landlord under this Lease.

           17. Indemnification

               a) Unless such loss, costs or damages were caused by negligence
of Landlord, its employees, agents or contractors, Tenant hereby agrees to
indemnify, defend and hold the Landlord and its employees, agents and
contractors harmless from any loss, costs and damages (including reasonable
attorney's fees and costs) suffered by Landlord, its agents, employees or
contractors, as a result of any claim by a third party, its agents, employees or
contractors arising from Tenant's occupancy of the Premises. Tenant shall have
the right to designate counsel acceptable to Landlord, such approval not be
unreasonably withheld, to assume the defense of any such third party claim on
behalf of itself and Landlord. Landlord shall not have the right to settle any
claim without the consent of Tenant. This indemnity shall survive the expiration
or termination of this Lease.
<PAGE>

               b) Unless such loss, costs or damages were caused by negligence
of Tenant, its employees, agents or contractors, Landlord hereby agrees to
indemnify, defend and hold the Tenant and its employees, agents and contractors
harmless from any loss, costs and damages (including reasonable attorney's fees
and costs) suffered by Tenant, its agents, employees or contractors, as a result
of any claim by a third party, its agents, employees or contractors arising from
Landlord's ownership and operation of the Property. Landlord shall have the
right to designate counsel acceptable to Tenant, such approval not be
unreasonably withheld, to assume the defense of any such third party claim on
behalf of itself and Tenant. Tenant shall not have the right to settle any claim
without the consent of Landlord. This indemnity shall survive the expiration or
termination of this Lease.

               c) If Landlord brings any action under this Lease Agreement,
Tenant agrees in each case to pay Landlord's reasonable attorney's fees and
other costs and expenses incurred by Landlord in connection therewith; provided,
however, the Landlord prevails in such action.

           18. Condemnation.

               a) Condemnation of Premises. If any portion of the Premises is
taken under the power of eminent domain, or sold by Landlord under the threat of
the exercise of said power (the act of which is herein referred to as
"condemnation"), this Lease shall terminate as to the part so taken as of the
date the condemning authority takes possession of the condemned portion of the
Premises (the "Condemnation Date"). If the entire Premises is condemned, then
the Lease shall automatically terminate as of the Condemnation Date. The party
who receives the condemnor's notice of intention to take (the "Condemnation
Notice") shall immediately give a copy of such notice to the other party.

               b) Condemnation of the Property. If as a result of any
condemnation of the Property or any portion thereof (even though the Premises is
not physically affected) or (a) the number of parking spaces on the Property is
reduced by more than fifty (50) spaces and Landlord does not provide alternative
parking which is reasonably accessible, then Tenant may terminate this Lease at
any time after Tenant receives the Condemnation Notice by giving Landlord thirty
(30) days written notice.

               c) Condemnation of the Building. If a condemnation of any portion
of the Building (even though the Premises is not physically affected) renders
the Building unsuitable for use as an office Building in the Landlord's
reasonable business judgment, then Landlord may terminate this Lease by giving
the Tenant at least thirty (30) days written notice. Notwithstanding the
foregoing, Landlord may only exercise its right to terminate under this Section
if Landlord terminates the Leases of all other tenants in the Building.

               d) Restoration. If this Lease is not terminated as to the whole
Premises, (a) it shall remain in full force and effect as to the portion of the
Premises remaining,
<PAGE>

provided the Fixed Basic Rent and all other charges payable hereunder shall be
reduced in the same proportion that the area taken bears to the total area of
the Premises prior to the taking, and (b) Landlord shall use the condemnation
award to restore the Premises and the Building as soon as reasonably possible to
a complete unit of the same quality, character and utility for Tenant's purposes
existing prior to the condemnation. If the Lease is not terminated but the
Premises cannot be restored (as reasonably determined by Landlord and Tenant) to
substantially the same condition as existed prior to the date of the
condemnation within one hundred and eighty (180) days, then this Lease shall
terminate upon written notice from either party to the other.

               e) Award. In the event of a condemnation affecting Tenant, Tenant
shall have the right to make a claim against the condemnor for removal expenses
and moving expenses, loss of business and any other claims Tenant may have;
provided and to the extent, however, that such claims or payments do not reduce
the sums otherwise payable by the condemnor to Landlord. Except as aforesaid,
Tenant hereby waives all claims against Landlord and against the condemnor, and
Tenant hereby assigns to Landlord all claims against the condemnor including,
without limitation, all claims for leasehold damages and diminution in value of
Tenant's leasehold interest.

           19. Quiet Enjoyment. Tenant, upon paying the Fixed Basic Rent,
Additional Rent and other charges herein required and observing and keeping all
covenants, agreements and conditions of this Lease, shall quietly have and enjoy
the Premises during the Term without hindrance or molestation by anyone claiming
by or through Landlord, subject, however, to the exceptions, reservations and
conditions of this Lease.

           20. Rules and Regulations. The Landlord hereby reserves the right to
prescribe, from time to time, at its sole discretion, reasonable rules and
regulations (herein called the "Rules and Regulations") attached hereto as
Exhibit B governing the use and enjoyment of the Premises and the remainder of
the Property. The Rules and Regulations shall not materially interfere with the
Tenant's use and enjoyment of the Premises in accordance with the provisions of
this Lease for the Permitted Use and shall not increase or modify Tenant's
obligations under this Lease. In the event of a conflict between the Lease
Agreement and such rules and regulations, the Lease Agreement shall control. The
Tenant shall comply at all times with the Rules and Regulations and shall cause
its agents, employees, invitees, visitors, and guests to do so.

           21. Assignment and Sublease.

               a) Tenant may assign this Lease or sublet the whole orany portion
of the Premises, subject to the Landlord's prior written consent, which consent
shall not be unreasonably withheld or delayed on the basis of the following
terms and conditions:

                  i) The Tenant shall provide to the Landlord the name and
address of the assignee or subtenant.
<PAGE>

                  ii) The assignee or subtenant shall assume, by written
instrument, all of the obligations of this Lease, and a copy of such assumption
agreement shall be furnished to the Landlord within ten (10) days of its
execution. Any sublease shall expressly acknowledge that said subtenant's rights
against Landlord shall be no greater than those of Tenant.

                  iii) The Tenant and each assignee shall be and remain liable
for the observance of all the covenants and provisions of this Lease, including,
but not limited to, the payment of Fixed Basic Rent and Additional Rent reserved
herein, through the entire Term of this Lease, as the same may be renewed,
extended or otherwise modified.

                  iv) The Tenant and any assignee shall promptly pay to Landlord
one-half of the net profit received from such subleasing or assignment. Net
profit will be calculated after deducting the Tenant's Transfer Expenses (as
hereinafter defined). "Transfer Expenses" shall mean (i) the reasonable
out-of-pocket costs and expenses of Tenant in making such sublease or
assignment, as the case may be, such as market rate brokers' fees, reasonable
attorneys' fees and advertising fees, (ii) any fees paid to Landlord pursuant to
the terms of this Lease, (iii) the cost of improvements or alterations made by
Tenant expressly for the purpose of preparing the Premises for such subtenant or
assignee, and (iv) the unamortized cost of any Tenant's property leased to and
used by such subtenant or assignee. In determining Transfer Expenses, the costs
set forth in clauses (i), (ii) and (iii) shall be amortized on a straight-line
basis over the term of the sublease, or the remainder of the term of this Lease,
if an assignment, and the costs set forth in clause (iv) shall be amortized on a
straight-line basis over the greater of (x) the longest useful life of such
improvements, alterations or property (as permitted pursuant to the Internal
Revenue Code of 1986, as amended), or (y) the term of the sublease, or the
remainder of the Term of this Lease, if an assignment.

                  v) In any event, the acceptance by the Landlord of any rent
from the assignee or from any of the subtenants or the failure of the Landlord
to insist upon a strict performance of any of the terms, conditions and
covenants herein shall not release the Tenant herein, nor any assignee assuming
this Lease, from any and all of the obligations herein during and for the entire
Term of this Lease.

                  vi) Landlord shall require a Five Hundred Dollars ($500.00)
payment to cover its handling charges for each request for consent to any sublet
or assignment prior to its consideration of the same. Tenant acknowledges that
its sole remedy with respect to any assertion that Landlord's failure to consent
to any sublet or assignment is unreasonable shall be the remedy of specific
performance and Tenant shall have no other claim or cause of action against
Landlord as a result of Landlord's actions in refusing to consent thereto.

               b) Notwithstanding anything to the contrary in this Lease, Tenant
may, upon ten (10) days written notice to Landlord but without Landlord's prior
written consent, and without Landlord having any right to terminate this Lease
or share in any consideration or profit therefor, assign or transfer its entire
interest in this Lease and the leasehold estate
<PAGE>

hereby created, or sublease the entire demised premises, to a successor
corporation of Tenant, which for the purposes of this Lease shall mean either
(a) any corporation or other business entity which controls, is controlled by,
or under common control with, Tenant (a "related corporation"), or (b) a
corporation or other business entity into which or with which Tenant, its
corporate successors or assigns, is merged or consolidated, in accordance with
applicable statutory provisions for the merger or consolidation of corporations,
provided that by operation of law or by effective provisions contained in the
instruments of merger or consolidation the liabilities of the corporations or
other business entities participating in such merger or consolidation are
assumed by the corporation or other business entity surviving such merger or
consolidation, or (c) a corporation or other business entity acquiring
substantially all of Tenant's assets, or (d) any successor to a successor
corporation becoming such by any of the methods described in subdivisions (a),
(b) and (c) above; provided, however, that Tenant shall have no such right to
assign or transfer to a successor corporation unless Tenant shall not be in
default in the performance of any of its obligations under this Lease beyond the
applicable notice and cure period and provided that in the event of such merger,
consolidation or transfer of (i) the successor to Tenant has a net worth
computed in accordance with generally accepted accounting principles at least
equal to the greater of (1) the net worth of Tenant immediately prior to such
merger, consolidation or transfer, or (2) the net worth of Tenant herein named
on the date of this Lease, and (ii) proof satisfactory to Landlord of such net
worth shall have been delivered to Landlord at least ten (10) days prior to the
effective date of any such transaction. For the purposes hereof "control" shall
be deemed to mean ownership of not less than fifty percent (50%) of all of the
voting stock of such corporation, or not less than fifty percent (50%) of all of
the legal and equitable interest in any other business entity, or the possession
of the power, directly or indirectly, to direct or cause the direction of
management and policy of a corporation or other business entity, whether through
the ownership of voting securities, common directors or officers, the
contractual right to manage the business affairs of such business entity, or
otherwise. Notwithstanding anything to the contrary contained in this Lease and
(x) any sale or transfer of Tenant's capital stock through any public exchange,
or redemption or issuance of additional stock of any class, shall not be deemed
an assignment, subletting or any other transfer of this Lease or the Premises

               d) In the event that any or all of Tenant's interest in the
Premises and/or this Lease is transferred by operation of law to any trustee,
receiver, or other representative or agent of Tenant, or to Tenant as a debtor
in possession, and subsequently any or all of Tenant's interest in the Premises
and/or this Lease is offered or to be offered by Tenant or any trustee,
receiver, or other representative or agent of Tenant as to its estate or
property (such person, firm or entity being hereinafter referred to as the
"Grantor", for assignment, conveyance, lease, or other disposition to a person,
firm or entity other than Landlord (each such transaction being hereinafter
referred to as a "Disposition"), it is agreed that Landlord has and shall have a
right of first refusal to purchase, take, or otherwise acquire, the same upon
the same terms and conditions as the Grantor thereof shall accept upon such
Disposition to such other person, firm, or entity; and as to each such
Disposition the Grantor shall give written notice to Landlord in reasonable
detail of all of the terms and conditions of such Disposition within twenty
(20) days next following its determination to accept the same but prior to
accepting the same, and Grantor shall not make the Disposition until and
<PAGE>

unless Landlord has failed or refused to accept such right of first refusal as
to the Disposition, as set forth herein. Landlord shall have sixty (60)days next
following its receipt of the written notice as to such Disposition in which to
exercise the option to acquire Tenant's interest by such Disposition, and the
exercise of the option by Landlord shall be effected by notice to that effect
sent to the Grantor; but nothing herein shall require Landlord to accept a
particular Disposition or any Disposition, nor does the rejection of any one
such offer of first refusal constitute a waiver or release of the obligation of
the Grantor to submit other offers hereunder to Landlord. In the event Landlord
accept such offer of first refusal, the transaction shall be consummated
pursuant to the terms and conditions of the Disposition described in the notice
to Landlord. In the event Landlord rejects such offer of first refusal, Grantor
may consummate the Disposition with such other person, firm, or entity; but any
decrease in price of more than two percent (2%)of the price sought from Landlord
or any change in the terms of payment for such Disposition shall constitute a
new transaction requiring a further option of first refusal to be given to
Landlord hereunder.

               e) Without limiting any of the provisions of this Section 21, if
pursuant to the Federal Bankruptcy Code (herein referred to as the "Code"), or
any similar law hereafter enacted having the same general purpose, Tenant is
permitted to assign this Lease notwithstanding the restrictions contained in
this Lease, adequate assurance of future performance by an assignee expressly
permitted under such Code shall be deemed to mean the deposit of cash security
in an amount equal to the sum of one year's Fixed Basic Rent plus an amount
equal to the Additional Rent for the calendar year preceding the year in which
such assignment is intended to become effective, which deposit shall be held by
Landlord for the balance of the Term, without interest, as security for the full
performance of all of Tenant's obligations under this Lease, to be held and
applied in the manner specified for any security deposit required hereunder.

               f) Except as specifically set forth above, no portion of the
Premises or of Tenant's interest in this Lease may be acquired by any other
person or entity, whether by assignment, mortgage, sublease, transfer, operation
of law or act of the Tenant, nor shall Tenant pledge its interest in this Lease
or in any security deposit required hereunder.

           22. Tenant's Relocation. [Intentionally Deleted].

           23. Subordination. The estate of this Lease and Tenant's rights
hereunder shall be subject and subordinate at all times in lien and priority to
any first mortgage or other primary encumbrance now or hereafter placed upon or
affecting the Property or the Premises, and to any second mortgage or
encumbrance with the consent of the first mortgagee, and to all renewals,
modifications, consolidations and extensions thereof, without the necessity of
any further instrument or act on the part of Tenant. Tenant shall execute and
deliver upon demand any further instrument or instruments confirming the
subordination of this Lease to the lien of any such first mortgage or to the
lien of any other mortgage, if requested to do so by Landlord with the consent
of the first mortgagee, and any further instrument or instruments of attornment
that may be desired by any such mortgagee or Landlord, provided, however, that
any holder of such lien or mortgage agrees not to disturb the use and occupancy
of the Premises in accordance with the terms
<PAGE>

of this Lease Agreement upon any foreclosure. Notwithstanding the foregoing, any
mortgagee may at any time subordinate its mortgage to this Lease, without
Tenant's consent, by giving notice in writing to Tenant and thereupon this Lease
shall be deemed prior to such mortgage without regard to their respective dates
of execution and delivery. In that event such mortgagee shall have the same
rights with respect to this Lease as though this Lease had been executed prior
to the execution and delivery of the mortgage and had been assigned to such
mortgagee. Landlord agrees that it will use best efforts to obtain and deliver
to Tenant a subordination, non-disturbance and attornment agreement from the
holder(s) of any mortgage or other security interest affecting the Premises of
Building.

           24. Curing Tenant's Defaults. If Tenant defaults in the performance
of any of its obligations hereunder, beyond any applicable notice and cure
period Landlord may, without any obligation to do so and in addition to any
other rights it may have in law or equity, elect to cure such default on behalf
of Tenant after written notice (except in the case of emergency) to Tenant.
Tenant shall reimburse Landlord upon demand for any reasonable sums paid or
costs incurred by Landlord in curing such default, including interest thereon
from the respective dates of Landlord's making the payments and incurring such
costs, which sums and costs together with interest thereon shall be deemed
Additional Rent payable within ten (10) days of demand.

           25. Surrender.

               a) At the expiration or earlier termination of the Term Tenant
shall promptly yield up the Premises and all improvements, alterations and
additions thereto, and all fixtures and equipment servicing the Premises in a
condition which is clean of garbage and debris and broom clean and in the same
condition, order and repair in which they are required to be kept throughout the
Term, ordinary wear and tear excepted.

               b) Tenant, upon three (3) months prior written notice to
Landlord, Tenant may extend the Term, or if applicable, any renewal term, of the
Lease for one (1) additional three (3) month period and during such period, all
the terms and conditions of this Lease shall apply and Tenant shall pay Fixed
Basic Rent at the rate then being paid by Tenant. If Tenant, or any person
claiming through Tenant, continues to occupy the Premises after the expiration
or earlier termination of the Term or any renewal thereof without prior written
consent of Landlord, the tenancy under this Lease shall become, at the option of
Landlord, expressed in a written notice to Tenant and not otherwise, either from
month-to-month, terminable by Landlord on thirty (30) days prior notice, under
the same terms and conditions set forth in this Lease; except, however, that the
Fixed Basic Rent during such continued occupancy shall be 150% of the amount set
forth in subsection 6(a) and Tenant shall indemnify Landlord for any loss or
damage incurred by reason of Tenant's failure to surrender the Premises.
Anything to the contrary notwithstanding, any holding over by Tenant without
Landlord's prior written consent shall constitute a default hereunder and shall
be subject to all the remedies set forth in subsection 26(b) hereof.
<PAGE>

           26. Defaults-Remedies.

               a) Defaults. It shall be an event of default under this Lease if
any one or more of the following events occurs:

                  i) Tenant fails to pay in full, within five (5) days after
when due and without demand, any and all installments of Fixed Basic Rent or
Additional Rent or any other charges or payments due and payable under this
Lease whether or not herein included as rent.

                  ii) Tenant violates or fails to perform or otherwise breaches
any agreement, term, covenant or condition contained in this Lease and fails to
cure same within 20 days after notice.

                  iii) Tenant abandons or vacates the Premises without notice
without having first paid to Landlord in full all Fixed Basic Rent, Additional
Rent and other charges that have become due as well as all which will become due
thereafter through the end of the Term.

                  iv) Tenant becomes insolvent or bankrupt in any sense or makes
an assignment for the benefit of creditors or if a petition in bankruptcy or for
reorganization or for an arrangement with creditors under any federal or state
law is filed by or against Tenant, or a bill in equity or other proceeding for
the appointment of a receiver or similar official for any of Tenant's assets is
commenced, or if any of the real or personal property of Tenant shall be levied
upon by any sheriff, marshal or constable; provided, however, that any
proceeding brought by anyone other than the parties to this Lease under any
bankruptcy, reorganization arrangement, insolvency, readjustment, receivership
or similar law shall not constitute an event of default until such proceeding,
decree, judgment or order has continued unstayed for more than sixty
(60) consecutive days.

               b) Remedies. Upon the occurrence of an event of default under
this Lease, Landlord shall have all of the following rights:

                  i) Landlord may charge a late payment charge of five (5%)
percent of any amount owed to Landlord pursuant to this Lease which is not paid
within five (5) days of the due date which is set forth in the Lease or, if a
due date is not specified in this Lease, within thirty (30) days of the mailing
of a bill therefor by Landlord. If Landlord incurs a late charge in connection
with any payment which Tenant has failed to make within the times required in
this Lease, Tenant shall pay Landlord, in addition to such payment due, the full
amount of such late charge incurred by Landlord. Nothing in this Lease shall be
construed as waiving any rights of Landlord arising out of any default of
Tenant, by reason of Landlord's imposing or accepting any such late charge(s)
and/or interest; the right to collect such late charge(s) and/or interest is
separate and apart from any rights relating to remedies of Landlord after
default by Tenant including, without limitation, the rights and remedies of
Landlord provided herein. For the first time in any
<PAGE>

calendar year that Tenant has failed to pay any such monthly installment of
Fixed Basic Rent or Additional Rent, such interest and late charge shall not
apply unless Tenant has failed to make such payments within five (5) days of
receipt of Landlord's written notice of such delinquency. Landlord shall not be
required to give Tenant such notice more than once in any calendar year prior to
assessing such interest and late charge.

                  ii) Landlord may accelerate the whole or any part of the Fixed
Basic Rent and all Additional Rent for the entire unexpired balance of the Term
of this Lease, as well as all other charges, payments, costs and expenses herein
agreed to be paid by Tenant, and any Fixed Basic Rent or other charges,
payments, costs and expenses so accelerated shall, in addition to any and all
installments of rent already due and payable and in arrears and any other charge
or payment herein reserved, included or agreed to be treated or collected as
rent and any other charge, expense or cost herein agreed to be paid by Tenant
which may be due and payable and in arrears, be deemed due and payable as if, by
the terms and provisions of this Lease, such accelerated rent and other charges,
payments, costs and expenses were on that date payable in advance but in the
event that the Premises are relet, Tenant shall be entitled to a credit in an
amount equal to the net sum of rents actually received by Landlord in reletting
after deduction of all reasonable expenses.

                  iii) Landlord may re-enter the Premises and, at the option of
Landlord, remove all persons and all or any property therefrom, either by
summary dispossess proceedings or by any suitable action or proceeding at law
without being liable for prosecution or damages therefor, and Landlord may
repossess and enjoy the Premises. Upon recovering possession of the Premises by
reason of or based upon or arising out of a default on the part of Tenant,
Landlord may, at Landlord's option, either terminate this Lease or make such
alterations and repairs as may be necessary in order to relet the Premises and
may relet the Premises or any part or parts thereof, either in Landlord's name
or otherwise, for a term or terms which may, at Landlord's option, be less than
or exceed the period which would otherwise have constituted the balance of the
Term of this Lease and at such rent or rents and upon such other terms and
conditions as in Landlord's reasonable discretion may seem advisable and to such
person or persons as may in Landlord's discretion seem best; upon each such
reletting all rents received by Landlord from such reletting shall be applied as
follows: first, to the payment of any reasonable costs and expenses of such
reletting, including all costs of alterations and repairs; second, to the
payment of any indebtedness other than Fixed Basic Rent, Additional Rent or
other charges due hereunder from Tenant to Landlord; third, to the payment of
Fixed Basic Rent, Additional Rent and other charges due and unpaid hereunder;
and the residue, if any, shall be held by Landlord and applied in payment of
future rent as it may become due and payable hereunder. If rentals received from
reletting during any month are less than that to be paid during that month by
Tenant, Tenant shall pay any such deficiency to Landlord. Such deficiency shall
be calculated and paid monthly. No such re-entry or taking possession of the
Premises or the making of alterations or improvements thereto or the reletting
thereof shall be construed as an election on the part of Landlord to terminate
this Lease unless written notice of termination is given to Tenant. Landlord
shall in no event be liable in any way
<PAGE>

whatsoever for failure to relet the Premises or, in the event that the Premises
or any part or parts thereof are relet, for failure to collect the rent thereof
under such reletting. Notwithstanding any such reletting without termination,
Landlord may at any time thereafter elect to terminate this Lease for such
previous breach.

                  iv) Landlord may terminate this Lease and the Term without any
right on the part of Tenant to waive the forfeiture by payment of any sum due or
by other performance of any condition, term or covenant broken. Upon such
termination, Landlord shall be entitled to recover, in addition to any and all
sums and damages for violation of Tenant's obligations hereunder in existence at
the time of such termination, damages for Tenant's default in an amount equal to
the amount of the Fixed Basic Rent and Additional Rent reserved for the balance
of the Term, as well as all other charges, payments, costs and expenses herein
agreed to be paid by Tenant all of which amount shall be immediately due and
payable from Tenant to Landlord upon demand therefor.

                  v) WHEN THIS LEASE AND THE TERM OR ANY EXTENSION OR RENEWAL
THEREOF SHALL HAVE BEEN TERMINATED ON ACCOUNT OF ANY DEFAULT BY TENANT, OR WHEN
THE TERM HAS EXPIRED, IT SHALL BE LAWFUL FOR ANY ATTORNEY OF ANY COURT OF RECORD
TO APPEAR AS ATTORNEY FOR TENANT AS WELL AS FOR ALL PERSONS CLAIMING BY, THROUGH
OR UNDER TENANT, AND TO FILE AN AGREEMENT FOR ENTERING IN ANY COMPETENT COURT AN
ACTION FOR JUDGMENT IN EJECTMENT AGAINST TENANT AND ALL PERSONS CLAIMING BY,
THROUGH OR UNDER TENANT FOR THE RECOVERY BY LANDLORD OF POSSESSION OF THE
PREMISES, FOR WHICH THIS LEASE SHALL BE A SUFFICIENT WARRANT; WHEREUPON, IF
LANDLORD SO DESIRES, AN APPROPRIATE WRIT OF POSSESSION MAY ISSUE FORTHWITH,
WITHOUT ANY PRIOR WRIT OR PROCEEDING WHATSOEVER, AND PROVIDED THAT IS FOR ANY
REASON AFTER SUCH ACTION SHALL HAVE BEEN COMMENCED IT SHALL BE DETERMINED AND
POSSESSION OF THE PREMISES REMAIN IN OR BE RESTORED TO TENANT, LANDLORD SHALL
HAVE THE RIGHT FOR THE SAME DEFAULT AND UPON ANY SUBSEQUENT DEFAULT OR DEFAULTS,
OR UPON THE TERMINATION OF THIS LEASE OR TENANT'S RIGHT OF POSSESSION AS
HEREINBEFORE SET FORTH, TO BRING ONE OR MORE FURTHER ACTIONS IN EJECTMENT AS
HEREINBEFORE SET FORTH TO CONFESS JUDGMENT FOR THE RECOVERY OF POSSESSION OF THE
PREMISES.

               c) Waiver of Jury Trial. IT IS MUTUALLY AGREED BY AND BETWEEN
LANDLORD AND TENANT THAT (A) THEY HEREBY WAIVE TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTER-CLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE
OTHER ON ANY MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS
LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT'S USE OF OCCUPANCY OF THE
PREMISES OR CLAIM OF INJURY OR DAMAGE, AND (B) IN ANY ACTION BY LANDLORD AGAINST
TENANT, THE LEGAL FEES OF THE
<PAGE>

PREVAILING PARTY WILL BE PAID BY THE OTHER PARTY TO THE ACTION.

               d) Non-Waiver. No waiver by Landlord of any breach by Tenant of
any of Tenant's obligations, agreements or covenants herein shall be a waiver of
any subsequent breach or of any other obligation, agreement or covenant, nor
shall any forbearance by Landlord to seek a remedy for any event of default by
Tenant be a waiver by Landlord of any rights and remedies with respect to such
or any subsequent event of default.

               e) Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to Landlord is intended to be exclusive of any other
right or remedy provided herein or by law, but each shall be cumulative and in
addition to every other right or remedy given herein or now or hereafter
existing at law or in equity or by statute.

               f) Duty to Mitigate. Notwithstanding any other provisions of this
Lease, Landlord shall use all commercially reasonable efforts to mitigate its
damages and relet the Premises. Landlord's duty to mitigate damages shall be
deemed satisfied if Landlord lists the Premises for lease with a reputable
commercial real estate broker who reasonably markets the Premises and Landlord
subsequently deals with any tenant prospects, in a commercially reasonable
manner.

           27. Condition of Premises. Tenant represents that the Property and
the Premises, the have been examined by Tenant and Tenant accepts them in the
condition or state in which they now are, or any of them now is, without relying
on any representation, covenant or warranty, express or implied, in fact or in
law, by Landlord and without recourse to Landlord, the nature, condition or
usability thereof or the use or uses to which the Premises and the Property or
any part thereof may be put under present zoning ordinances or otherwise, except
as to work to be performed by Landlord pursuant to Section 3 and except as to
latent defects in such work.

           28. Hazardous Substances.

               a) Landlord and Tenant shall not cause or allow the generation,
treatment, storage or disposal of Hazardous Substances on or near the Premises
or Property. "Hazardous Substances" shall mean (i) any hazardous substance as
that term is defined in the Comprehensive Environmental Response, Compensation
and Liability Act ("CERCLA"), 42 U.S.C. 9601 et seq., as amended, (ii) any
                                             ------
hazardous waste or hazardous substance as those terms are defined in any local,
state or Federal law, regulation or ordinance not inapplicable to the Premises
and Property, or (iii) petroleum including crude oil or any fraction thereof. In
the event Landlord or Tenant uses any Hazardous Substances, Landlord or Tenant
shall dispose of such substances in accordance with all applicable Federal,
state and local laws, regulations and ordinances.

               b) Landlord and Tenant agree to indemnify, defend and hold
harmless the other, its employees, agents, successors, and assigns, from and
against any and all
<PAGE>

damage, claim, liability, or loss, including reasonable attorneys' and other
fees, arising out of or in any way connected to the generation, treatment,
storage or disposal of Hazardous Substances by Landlord or Tenant, its
employees, agents, contractors, or invitees, on or near the Premises or
Property. Such duty of indemnification shall include, but not be limited to
damage, liability, or loss pursuant to all Federal, state and local
environmental laws, rules and ordinances, strict liability and common law.

               c) Landlord and Tenant agree to notify each other immediately of
any disposal of Hazardous Substances in the Premises or Property, of any
discovery of Hazardous Substances in the Premises, or of any notice by a
governmental authority or private party alleging or suggesting that a disposal
of Hazardous Substances on or near the Premises or Property may have occurred.
Furthermore, Landlord and Tenant agree to provide the other with full and
complete access to any documents or information in its possession or control
relevant to the question of the generation, treatment, storage, or disposal of
Hazardous Substances on or near the Premises.

               d) Landlord represents and warrants that, to the best of its
knowledge, there are no Hazardous Substances in, under or about the Building.
Landlord shall be responsible, at its sole cost and expense, for compliance with
any governmental law, order, regulation, or requirement relating to the removal,
encapsulation, or other treatment of any asbestos containing materials or other
Hazardous Substances located within or about the Premises as of the date of this
Lease, and for the removal of any asbestos or asbestos containing materials or
other Hazardous Substances within or about the Premises, unless the presence of
any such asbestos or other Hazardous Substances was caused by Tenant, or its
employees, agents or invitees.

           29. Recording. Neither this Lease nor a memorandum of this Lease
shall be recorded in any public records without the written consent of Landlord.

           30. Brokers' Commission. Tenant and Landlord represent and warrant to
each other that the Brokers (as defined in the Preamble) are the sole brokers
with whom each has negotiated in bringing about this Lease and Tenant and
Landlord agree to indemnify and hold each other and Landlord's mortgagee(s)
harmless from any and all claims of other brokers and expenses in connection
therewith arising out of a representations made herein. In no event shall
Landlords mortgagee(s) have any obligation to any broker involved in this
transaction. Landlord shall pay the Brokers' commissions pursuant to a separate
agreement.

           31. Notices. All notices, demands, requests, consents, certificates,
and waivers required or permitted hereunder from either party to the other shall
be in writing and sent by United States certified mail, return receipt
requested, postage prepaid, or by recognized overnight courier, addressed as
follows:

                      If to Tenant:

                      Broadview Networks, Inc.
                      45-l8 Court Square, Suite 403
<PAGE>

                     Long Island City, NY 11101
                     Atten: Scott Matukas, Vice President

                     with a copy to:
                     Littman Krooks Roth and Ball P.C.
                     655 Third Avenue, 20th Floor
                     New York, New York 10017
                     Attention: Stuart S. Ball, Esq.

                     If to Landlord:

                     400 Horsham Road Associates, L.P.
                     c/o O'Neill Properties Group, L.P.
                     1101 West DeKalb Pike, Suite 200
                     Wayne, PA 19087
                     Attn: President

                     with a copy to:

                     Kevin W. Walsh, Esquire
                     Adelman Lavine Gold and Levin
                     1101 West DeKalb Pike, Suite 201
                     Wayne, PA 19087

Either party may at any time, in the manner set forth for giving notices to the
other, specify a different address to which notices to it shall thereafter be
sent.

           32. Irrevocable Offer: No Option. Although Tenant's execution of this
Lease shall be deemed an offer irrevocable by Tenant, the submission of this
Lease by Landlord to Tenant for examination shall not constitute a reservation
of or option for the Premises. This Lease shall become effective only upon
execution thereof by an authorized officer of the general partner of the
Landlord and by an authorized officer of Tenant.

           33. Inability to Perform. In the event either party shall be delayed
or hindered in or prevented from the performance of any covenant, agreement,
work, service, or other act required under this Lease to performed by such party
(other than Tenant's obligation to pay Rent) and such delay or hindrance is due
to strikes, lockouts, failure of power or other utilities, injunction or other
court or administrative order, governmental law or regulations which prevent or
substantially interfere with the required performance, condemnations, riots,
insurrections, martial law, civil commotion, war, fire, flood, earthquake, or
other casualty, acts of God, or other causes not within the reasonable control
of such party, the performance of any covenant, agreement, work, service, or
other act shall be excused for the period of delay and the period for the
performance of the same extended by the period.

           34. Survival. Notwithstanding anything to the contrary contained in
this Lease,
<PAGE>

the expiration of the Term of this Lease, whether by lapse of time or otherwise,
shall not relieve Tenant from its obligations accruing prior to the expiration
of the Term.

           35. Corporate Tenants. If Tenant is a corporation, the
person(s) executing this Lease on behalf of Tenant hereby covenant(s) and
warrant(s) that: Tenant is a duly formed corporation qualified to do business in
the state in which the Property is located; Tenant will remain qualified to do
business in said state throughout the Term and any renewals thereof; and such
persons are duly authorized by such corporation to execute and deliver this
Lease on behalf of the corporation.

           36. Tenant Representations and Warranties. Tenant hereby represents
and warrants to Landlord (i) that Tenant's most recent financial statements
delivered to Landlord in connection with the execution of this Lease are true in
all material respects and no material adverse changes have occurred with respect
thereto, (ii) that upon Landlord's request in connection with Landlord's efforts
to refinance the Property or to sell the Property, or at the request of
Landlord's mortgagee, Tenant will deliver to Landlord current financial
statements which shall be prepared in accordance with generally accepted
accounting principles consistently applied, and (iii) during the Term of the
Lease, no material adverse change shall occur with respect to Tenant's financial
condition.

           37. Waiver of Invalidity of Lease. Each party agrees that it will not
raise or assert as a defense to any obligation under the Lease or make any claim
that the Lease is invalid or unenforceable due to any failure of this document
to comply with ministerial requirements including, without limitation,
requirements for corporate seals, attestations, witnesses, notarizations or
other similar requirements and each party hereby waives the right to assert any
such defenses or make any claim of invalidity or unenforceability due to any of
the foregoing.

           38. Security Deposit. [Intentionally Deleted].

           39. Estoppel Certificate.

               a) Tenant shall from time to time, within five (5) days after
Landlord's request or that of any mortgagee of Landlord, execute, acknowledge
and deliver to Landlord a written instrument in recordable form, substantially
in the form attached hereto as Exhibit E (a "Tenant Estoppel Certificate"),
                               ---------
certifying (i) that this Lease is in full force and effect and has not been
modified, supplemented or amended (or, if there have been modifications,
supplements or amendments, that it is in full force and effect as modified,
supplemented or amended, and stating such modifications, supplements and
amendments); (ii) the dates to which Fixed Basic Rent and Additional Rent and
any other charges arising hereunder have been paid; (iii) the amount of any
prepaid rents or credits due Tenant, if any; (iv) if applicable, that Tenant has
accepted possession and has entered into occupancy of the Premises, and
certifying the Commencement Date and the Termination Date; (v) whether or not,
to the best of the Tenant's knowledge, all conditions under the Lease to be
performed by Landlord prior thereto have been satisfied
<PAGE>

and whether or not Landlord is then in default in the performance of any
covenant, agreement or condition contained in this Lease and specifying each, if
any, unsatisfied condition and each, if any, default of which Tenant may have
knowledge; and (vi) any other fact or condition related to the Lease or the
Tenant reasonably requested. Any certification delivered pursuant to the
provisions of this Article shall be intended to be relied upon by Landlord and
any mortgagee or prospective mortgagee or purchaser of the Property or of any
interest therein.

               b) The failure of Tenant to execute, acknowledge and deliver to
Landlord a written Tenant Estoppel Certificate in accordance with the provisions
of this Section 39 within said five (5) day period shall constitute an
acknowledgment by Tenant, which may be relied upon by any mortgagee or
prospective mortgagee or any purchaser of the Property or of any interest
therein, that this Lease has not been modified, supplemented or amended except
as set forth in landlord's request, and is in full force and effect (or in full
force and effect as so modified, supplemented or amended), that the Base Rent,
Additional Rent and any other charges arising hereunder have not been paid
beyond the respective due dates immediately preceding the date of such request,
that Tenant has no right of set-off or other defense to this Lease and of the
truth of such other facts and conditions as shall have been requested to be
certified, and shall constitute, as to any person entitled to rely as aforesaid,
a waiver of any defaults which may exist prior to the date of such request.
Notwithstanding the foregoing, Tenant's failure to furnish a Tenant Estoppel
Certificate within said five (5) day period shall constitute a default under
this Lease.

               c) Landlord, at any time, and from time to time, on the written
request of Tenant, will execute, acknowledge and delivery to Tenant a
certificate certifying the then current status of the Lease and providing any
other information reasonably requested by Tenant, all substantially in
accordance with Tenant's similar obligations as set forth in this Section 39.

           40. Rights Reserved by Landlord. Landlord waives no rights, except
those that may be specifically waived herein, and explicitly retains all other
rights including, without limitation, the following rights, each of which
Landlord may exercise without notice to Tenant and without liability to Tenant
for damage or injury to property, person or business on account of the exercise
thereof, and the exercise of any such rights shall not be deemed to constitute
an eviction or disturbance of Tenant's use or possession of the Premises and
shall not give rise to any claim for set-off or abatement of Rent or any other
claim except as otherwise expressly provided herein: Notwithstanding anything to
the contrary contained in this Lease, any changes, additions or alterations by
Landlord shall not (i) impair access to, visibility of, or frontage of, the
Demised Premises or (ii) materially affect the conduct of Tenant's customary
business therein.

               a) Upon sixty (60) days prior notice to change the name or street
address of the Building.

               b) To install, affix and maintain any and all signs on the
exterior and on
<PAGE>

the interior of the Building.

               c) Upon prior reasonable notice to decorate or to make repairs,
alterations, additions, or improvements, whether structural or otherwise, in and
about the Building, or any part thereof, and for such purposes to enter upon the
Premises and during the continuance of any of such work, to temporarily close
doors, entry ways, public space and corridors in the Building and to interrupt
or temporarily suspend services or use of facilities, all without affecting any
of Tenant's obligations hereunder except as otherwise expressly provided herein,
so long as the Premises are reasonably accessible and usable.

               d) To furnish door keys for the entry door(s) in the Premises on
the Commencement Date and to retain at all times, and to use in appropriate
instances, keys to all doors within and into the Premises. Tenant agrees to
purchase only from Landlord additional duplicate keys as required, to change no
locks, and not to affix locks on doors without the prior written consent of the
Landlord which consent shall not be unreasonably withheld or delayed Upon the
expiration of the Term or Tenant's right to possession, Tenant shall return all
keys to Landlord and shall disclose to Landlord the combination of any safes,
cabinets or vaults left in the Premises.

               e) To designate and approve all window coverings used in the
Building.

               f) To approve the weight, size and location of heavy equipment
and articles in and about the Premises and the Building so as not to exceed the
legal load per square foot designated by the structural engineers for the
Building, and to require all such items and furniture and similar items to be
moved into or out of the Building and Premises only at such reasonable times and
in such reasonable manner as Landlord shall direct in writing. Tenant shall not
install or operate machinery or any mechanical devices of a nature not directly
related to the Permitted Use, of the Premises without the prior written consent
of Landlord which consent shall not be unreasonably withheld or delayed. The
movement of Tenant's property into or out of the Building or the Premises and
within the Building are entirely at the risk and responsibility of Tenant, and
Landlord reserves the right to require written authorization from Tenant, in
form and content reasonably satisfactory to Landlord, before allowing any
property to be moved into or out of the Building or Premises.

               g) To regulate delivery of supplies and the usage of the loading
docks, receiving areas and freight elevators.

               h) To enter the Premises in accordance with Section 14, and, if
vacated or abandoned, to show the Premises at any time and to prepare the
Premises for re-occupancy.

               i) To erect, use and maintain pipes, ducts, wiring and conduits,
and appurtenances thereto, in and through the Premises.

               j) To grant to any person or to reserve unto itself the exclusive
right to
<PAGE>

conduct any business or render any service in the Building other than a
competitor of Tenant. If Landlord elects to make available to tenants in the
Building any services or supplies, or arranges a master contract therefor,
Tenant agrees to obtain its requirements, if any, therefor from Landlord or
under any such contract, provided that the charges therefor are reasonably
consistent with market rates.

               k) To alter the layout, design and/or use of the Building in such
manner as Landlord, in its sole discretion, deems appropriate, so long as the
character of the Building as a first class office building is maintained.

           41. Miscellaneous.

               a) Entire Agreement. This Lease represents the entire agreement
between the parties hereto and there are no collateral or oral agreements or
understandings between Landlord and Tenant with respect to the Premises or the
Property. No rights, easements or licenses are acquired in the Property or any
land adjacent to the Property by Tenant by implication or otherwise except as
expressly set forth in the provisions of this Lease.

               b) Modification. This Lease shall not be modified in any manner
except by an instrument in writing executed by the parties. In addition, Tenant
agrees to make such changes to this Lease as are required by any mortgagee,
provided such changes do not substantially affect Tenant's rights and obligation
hereunder.

               c) Interpretation. The masculine (or neuter) pronoun, singular
number, shall include the masculine, feminine and neuter genders and the
singular and plural number.

               d) Exhibits. Each writing or plan referred to herein as being
attached as an Exhibit or otherwise designated herein as an Exhibit hereto is
hereby made a part hereof.

               e) Captions and Headings. The captions and headings of sections,
subsections and the table of contents herein are for convenience only and are
not intended to indicate all of the subject matter in the text and they shall
not be deemed to limit, construe, affect or alter the meaning of any provisions
of this Lease and are not to be used in interpreting this Lease or for any other
purpose in the event of any controversy.

               f) Interest. Wherever interest is required to be paid hereunder,
such interest shall be at the highest rate permitted under law but not in excess
of the prime rate (as set forth in the Wall Street Journal plus two percentage
points per annum).

               g) Severability. If any term or provision of this Lease, or the
application thereof to any person or circumstance shall, to any extent, be
invalid or unenforceable, the remainder of this Lease, or the application of
such term or provision to persons or circumstances other than those as to which
it is held invalid or unenforceable, shall not be
<PAGE>

affected thereby, and each term and provision of this Lease shall be valid and
be enforced to the fullest extent permitted by law.

               h) Joint and Several Liability. If two or more individuals,
corporations, partnerships or other persons (or any combination of two or more
thereof) shall sign this Lease as Tenant, the liability of each such individual,
corporation, partnership or other persons to pay the Rent and perform all other
obligations hereunder shall be deemed to be joint and several, and all notices,
payments and agreements given or made by, with or to any one of such
individuals, corporations, partnerships or other persons shall be deemed to have
been given or made by, with or to all of them. In like manner, if Tenant shall
be a partnership or other legal entity, the members of which are, by virtue of
any applicable law or regulation, subject to personal liability, the liability
of each such member shall be joint and several.

               i) No Representations by Landlord. Landlord and Landlord's agents
have made no representations, agreements, conditions, warranties, understandings
or promises, either oral or written, other than as expressly set forth herein,
with respect to this Lease, the Premises and/or the Building.

               j) Relationship of Parties. This Lease shall not create any
relationship between the parties other than that of Landlord and Tenant.

               k) Choice of Law. The terms of this Lease shall be construed
under the laws of the Commonwealth of Pennsylvania, and that exclusive
jurisdiction and venue shall be in the Court of Common Pleas of the County in
which the Property is located.

           42. Additional Definitions.

               a) "Date of this Lease" or "date of this Lease" shall mean the
date of acceptance of this Lease by the Landlord, following execution and
delivery thereof to Landlord by Tenant and that date shall be inserted in the
space provided in the Preamble.

               b) "Landlord" as used herein includes the Landlord named above as
well as its successors and assigns, each of whom shall have the same rights,
remedies, powers, authorities and privileges as it would have had it originally
signed this lease as Landlord. Any such person, whether or not named herein,
shall have no liability hereunder after ceasing to hold title to the Premises.
Neither Landlord nor any principal of Landlord nor any owner of the Building or
the Lot, whether disclosed or undisclosed, shall have any personal liability
with respect to any of the provisions of this Lease or the Premises, and if
Landlord is in breach or default with respect to Landlord's obligations under
this Lease or otherwise, Tenant shall look solely to the equity of Landlord in
the Premises for the satisfaction of Tenant's remedies.

               c) "Tenant" as used herein includes the Tenant named above as
well as its heirs, successors and assigns, each of which shall be under the same
obligations, liabilities and disabilities and each of which shall have the same
rights, privileges and
<PAGE>

powers as it would have possessed had it originally signed this Lease as Tenant.
Each and every person named above as Tenant shall be bound formally and
severally by the terms, covenants and agreements contained herein. However, no
such rights, privileges or powers shall inure to the benefit of any assignee of
Tenant, immediate or remote, unless the assignment to such assignee is permitted
or has been approved in writing by Landlord. Any notice required or permitted by
the terms of this Lease may be given by or to any one of the persons named above
as Tenant, and shall have the same force and effect as if given by or to all of
them.

               d) "Mortgage" and "Mortgagee" as used herein includes any lien or
encumbrance on the Premises or the Property or on any part of or interest in or
appurtenance to any of the foregoing, including without limitation any ground
rent or ground lease if Landlord's interest is or becomes a leasehold estate.
The word "mortgagee" is used herein to include the holder of any mortgage,
including any ground Landlord if Landlord's interest is or becomes a leasehold
estate. Wherever any right is given to a mortgagee, that right may be exercised
on behalf of such mortgagee by any representative or servicing agent of such
mortgagee.

               e) "Person" as used herein includes a natural person, a
partnership, a corporation, an association, and any other form of business
association or entity.

               f) "Property" as used herein shall mean the Building and the lot,
tract or parcel of land on which the Building is situated.

               g) "Rent" or "rent" as used herein shall mean all Fixed Basic
Rent and Additional Rent reserved under this Lease.

            43. Tenant's Right of First Refusal.

               a) Subject to the rights of tenants of the Building as of the
date of this Lease, Tenant shall have a right of first refusal ("Right of
Refusal") to lease any additional space which becomes available in the Building
contiguous to the Premises during the Term ("Additional Space"). If Landlord
has Additional Space available and receives a bona fide offer (the "Offer") to
lease the Additional Space from a third party ("Offeror") which Landlord is
willing to accept, Landlord shall send written notice to Tenant, which notice
shall set forth the terms of the third party offer. Within ten (10) days after
receipt of Landlord's notice, Tenant shall reply by written notice either
accepting the Additional Space on the same terms and conditions of the third
party offer, or rejecting the same. Failure to respond within the ten (10) day
period shall constitute a rejection of the Additional Space. If Tenant accepts
the Additional Space, the Additional Space shall be added to the Premises by
amendment to this Lease, which shall include an adjustment of Tenant's
Proportionate Share and such other changes as may be appropriate. In the event
Tenant rejects the Offer, then Landlord may proceed to enter into a lease for
such Additional Space with the Offeror provided such lease is executed by the
Landlord and the Offeror within six (6) months from the date of the Offer. In
the

<PAGE>

event a new offer is tendered or received by Landlord, Landlord must again
submit such new offer to Tenant in accordance with this Section 43.

               b) All of the terms and conditions of this Lease will apply to
any Offer Space leased by Tenant, except as otherwise provided in Landlord's
Notification. The term of this Lease with respect to the Offer Space shall be
coterminous with the Term of this Lease with respect to the original Premises.
Landlord will have no liability to Tenant if any tenant of the Offer Space
wrongfully holds over. In the event such tenant wrongfully holds over, Landlord
will attempt in good faith to cause such tenant to vacate the Offer Space.
<PAGE>

                                     RIDER A

RENEWAL OPTION: Tenant is hereby granted two (2) options to renew this Lease
upon the following terms and conditions:

At the time of the exercise of each option to renew and at the time of the said
renewals, the Tenant shall not be in default in accordance with the terms and
provisions of this Lease beyond any applicable notice and surge period, and
shall be in possession of the Premises pursuant to this Lease.

Notice of the exercise of each option shall be sent to the Landlord in writing
at least six (6) months but not more than twelve (12) months before the
expiration of the term of this Lease in the case of the first renewal term, or
before the expiration of the first renewal term in the case of the second
renewal term.

Each renewal term shall be for a period of five (5) years, to commence at the
expiration of the Term of this Lease in the case of the first renewal term or
the first renewal term in the case of the second renewal term and all of the
terms and conditions of this Lease, other than the Fixed Basic Rent, shall apply
during any such renewal term.

The annual fixed basic rent to be paid during each renewal term shall not be
less than that paid for the Premises during the last year of the original term
of the Lease, or the first renewal term in the case of the second renewal term.
However, if ninety five percent (95%) of the fair rental value per square foot
at the commencement of the renewal term shall exceed the rent as established in
the preceding sentence, the Tenant shall pay such ninety five percent (95%) of
the fair rental value. In determining the fair rental value, the Landlord shall
notify Tenant of the fair rental value as established by the respective parties
if Landlord and Tenant cannot reach a mutual agreement with respect to such fair
market value, Landlord and Tenant shall jointly employ the services of an
independent appraiser familiar with office buildings located within the
metropolitan Philadelphia, Pennsylvania area comparable to the Building, who
shall be a member of MA1 and who shall render an appraisal. The fee of such
appraiser shall be borne equally by Landlord and Tenant. If the Landlord and the
Tenant cannot agree on the fair rental value, or in such case, on an independent
appraiser acceptable to both, either party may request the American Arbitration
Association to appoint such independent appraiser who shall be a member of MA1
familiar with office buildings in the area of the Building who shall render an
appraisal, and in such event the judgment of the appraiser shall be final and
binding upon the parties. Pending resolution of the issue of fair rental value,
the Tenant shall pay the Landlord as of commencement of the renewal term, the
Fixed Basic Rent as established by Landlord, subject to retroactive adjustment
upon final determination of this issue. Each party shall pay its own counsel
fees and expenses, if any, in connection with any arbitration under this
Article. It is expressly understood that in connection with any determination of
the fair and reasonable annual market rental value of the demised premises
pursuant to this Article, the following criteria shall be considered, among
other things, in the determination:
<PAGE>

     (A) the fact that the Expense Stop provided herein shall not change for the
purpose of calculating the Additional Rent payable pursuant to this Lease;

     (B) the fact that Tenant shall have no further right to renew this Lease
except as set forth herein;

     (C) the fact that Landlord shall not be obligated to perform any work in
the Demised Premises to prepare the same for Tenant's occupancy;

     (D) the fact that Tenant shall not be entitled to any free rent or other
similar credit against the Fixed Basic Rent; and

     (E) whether or not Landlord is or is not obligated to pay a brokerage
commission with respect to the applicable Renewal Term.
<PAGE>

     SECTION 26(b) HEREOF SETS FORTH A WARRANT OR AUTHORITY FOR AS ATTORNEY TO
CONFESS JUDGMENT AGAINST TENANT. IN GRANTING THIS WARRANT OF ATTORNEY TO CONFESS
JUDGMENT AGAINST TENANT, TENANT HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY,
AND (ON THE ADVICE OF THE SEPARATE COUNSEL OF TENANT, IF TENANT HAS USED COUNSEL
IN REGARD TO ENTERING INTO THIS LEASE) UNCONDITIONALLY WAIVES ANY AND ALL RIGHTS
TENANT HAS OR MAY HAVE TO PRIOR NOTICE AND AN OPPORTUNITY FOR HEARING UNDER THE
CONSTITUTIONS AND LAWS OF THE UNITED STATES AND THE COMMONWEALTH OF
PENNSYLVANIA.

     IN WITNESS WHEREOF, and in consideration of the mutual entry into this
Lease and for other good and valuable consideration, and intending to be legally
bound, each party hereto has caused this agreement to be duly executed under
seal.

Landlord:

                 1/31/00
Date Signed: ------------------------        400 HORSHAM ROAD
                                             ASSOCIATES, L.P.
                                             By: 400 HORSHAM ROAD
                                                 ASSOCIATES ACQUISITION
                                                 CORP.

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

                                                     Name: ---------------------

                                                     Title: --------------------

                                                 Attest: -----------------------

Tenant:

                 1/31/00
Date Signed: ------------------------        BROADVIEW NETWORKS, INC.

                                                 By: /s/
                                                     ---------------------------
                                                     Name: Scott M. Matukas
                                                           ---------------------
                                                     Title: VP Admin
                                                           ---------------------
                                                 Attest: /s/
                                                         -----------------------
                                                           Joy Phanumas

<PAGE>

     SECTION 26(b) HEREOF SETS FORTH A WARRANT OR AUTHORITY FOR AS ATTORNEY TO
CONFESS JUDGMENT AGAINST TENANT. IN GRANTING THIS WARRANT OF ATTORNEY TO CONFESS
JUDGMENT AGAINST TENANT, TENANT HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY,
AND (ON THE ADVICE OF THE SEPARATE COUNSEL OF TENANT, IF TENANT HAS USED COUNSEL
IN REGARD TO ENTERING INTO THIS LEASE) UNCONDITIONALLY WAIVES ANY AND ALL RIGHTS
TENANT HAS OR MAY HAVE TO PRIOR NOTICE AND AN OPPORTUNITY FOR HEARING UNDER THE
CONSTITUTIONS AND LAWS OF THE UNITED STATES AND THE COMMONWEALTH OF
PENNSYLVANIA.

     IN WITNESS WHEREOF, and in consideration of the mutual entry into this
Lease and for other good and valuable consideration, and intending to be legally
bound, each party hereto has caused this agreement to be duly executed under
seal.

Landlord:

Date Signed:     1/31/00                     400 HORSHAM ROAD
             ------------------------        ASSOCIATES, L.P.
                                             By: 400 HORSHAM ROAD
                                                 ASSOCIATES ACQUISITION
                                                 CORP.

                                                 By:/s/
                                                    ----------------------------
                                                     Name:/s/
                                                          ----------------------
                                                     Title:/s/
                                                           ---------------------
                                                Attest: /s/
                                                        ------------------------

Tenant:

Date Signed:     1/31/00                         BROADVIEW NETWORKS, INC.
             ------------------------
                                                 By: /s/
                                                    ----------------------------
                                                     Name:/s/
                                                          ----------------------
                                                     Title:/s/
                                                           ---------------------
                                                     Attest:/s/
                                                            --------------------
<PAGE>

                                   EXHIBIT A
                                   ---------

                              LOCATION OF BUILDING
<PAGE>

ALL THOSE TWO CERTAIN tracts or parcels of land with the buildings and
improvements thereon erected, Situate in the Township of Horsham, County of
Montgomery and Commonwealth of Pennsylvania, bounded and described according to
subdivision plan of Forge Industrial Tract, made by, Hopkins 6 Scott, Inc.,
dated 11/6/1983 as follows, to wit:

TEE FIRST THEREOF:
BEGINNING at the point of intersection of the centerlines of Horsham Road, Rte.
#463 and Norristown Road, as shown on said plan; thence from said point of
beginning extending along the said centerline of Horsham Road North 47 degrees
06 minutes West, 653.53 feet to a point, a corner; in the same; thence extending
North 42 degrees 54 minutes East, crossing the Northeasterly side of said.
Horsham Road and along Parcel A-l on said Plan, 497.00 feet to a point, a corner
thence continuing along siad Parcel A-l, South 47 degrees 06 minutes East 165.00
feet to a point, an angle: thence continuing along the same and along Parcel B-3
North 68 degrees 25 minutes East, 532.43 feet to a point, a corner in line of
Parcel B-l on said plan; thence extending along the same and Parcel B-2 and
crossing a 60 feet wide easement for ingress, egress, regress for Parcels A-l
and A-2, South 21 degrees 35 minutes East, 596.16 feet to a point, an angle;
thence continuing along said said Parcel B-2, South 47 degrees 06 minutes East,
94.64 feet to a point in line of lands of Willow Grove Construction Co.; thence
extending along the same South 42 degrees 29 minutes West, 342.50 feet to a
point in the centerline of Norristown Road, aforesaid; thence extending along
the same North 89 degrees 35 minutes West 510.12 feet to the first mentioned
point and place of beginning.

BEING PARCELS A-2 and B-4 on said plan, Containing 15.5 acres clear of
right-of-way.

BEING Parcel Numbers 36-00-04015-00-8 and 36-00-05334-12-9.

AS TO PART BEING the same premises which Mainard, Incorporated (Pa. Corp.) by
Deed dated 10/14/1981 and recorded in Montgomery County in Deed Book 4663 page
800 conveyed unto Montgomery County Industrial Development Authority, in fee.

AS TO THE REMAINING PART BEING the same premises which Mainard, Incorporated
(Pa. Corp.) by Deed dated 12/21/1983 and recorded in Montgomery County in Deed
Book 4728 page 816 conveyed unto Montgomery Industrial Development Authority, in
fee.
<PAGE>

                                   EXHIBIT A-l

                                DEMISED PREMISES
<PAGE>

                                400 Horsham Road
                             Horsham, Pennsylvania

                EXHIBIT A-1 - APPROX. -27,000 RSF CROSS-HATCHED

                                    Existing
                                     Tenant

                                    Available
                                   92,926 RSF

                                    Existing
                                     Tenant

                                    Existing
                                     Tenant
<PAGE>

                                   EXHIBIT B
                                   ---------

                              RULES AND REGULATIONS

1. OBSTRUCTION OF PASSAGEWAYS: The sidewalks, entrance, passages, courts,
   --------------------------
elevators, vestibules, stairways, corridors and public parts of the Building
shall not be obstructed or encumbered by Tenant or used by Tenant for any
purpose other than ingress and egress. If the Premises are situated on the
ground floor with direct access to the street, then Landlord shall, at
Landlord's expense, keep the sidewalks and curbs directly in front of the
Premises clean and free from ice, snow and refuse.

2. WINDOWS: Windows in the Premises shall not be covered or obstructed by
   -------
Tenant. No bottles, parcels or other articles shall be placed on the window
sills, in the halls, or in any other part of the Building other than the
Premises. No article shall be thrown out of the doors or windows of the
Premises.

3. PROJECTIONS FROM BUILDING: No awnings, air-conditioning units, or other
   -------------------------
fixtures shall be attached to the outside walls or the window sills of the
Building or otherwise affixed so as to project from the Building, without prior
written consent of Landlord.

4. SIGNS: No sign or lettering shall be affixed by Tenant to any part of the
   -----
outside of the Premises, or any part of the inside of the Premises so as to be
clearly visible from the outside of the Premises, without the prior written
consent of Landlord. However, Tenant shall have the right to place its name on
any door leading into the Premises the size, color and style thereof to be
subject to the Landlord's approval. Tenant shall not have the right to have
additional names placed on the Building directory without Landlord's prior
written consent.

5. FLOOR COVERING: Tenant shall not lay linoleum or other similar floor covering
   --------------
so that the same shall come in direct contact with the floor of the Premises. If
linoleum or other similar floor covering is desired to be used, an interlining
of builder's deadening felt shall first be fixed to the floor by a paste or
other material that may easily be removed with water, the use of cement or other
similar adhesive material being expressly prohibited.

6. INTERFERENCE WITH OCCUPANTS OF BUILDING: Tenant shall not make, or permit to
   ---------------------------------------
be made, any unseemly or disturbing noises or odors and shall not interfere with
other tenants or those having business with them. Tenant will keep all
mechanical apparatus in the Premises free of vibration and noise which may be
transmitted beyond the limits of the Premises.

7. LOCK KEYS: No additional locks or bolts of any kind shall be placed on any of
   ---------
the doors or windows by Tenant. Tenant shall, on the termination of Tenant's
tenancy, deliver to Landlord all keys to any space within the Building either
furnished to or otherwise procured by Tenant, and in the event of the loss of
any keys furnished, Tenant shall pay to
<PAGE>

Landlord the cost thereof. Tenant, before closing and leaving the Premises,
shall ensure that all windows are closed and entrance doors locked. Nothing in
this Paragraph 7 shall be deemed to prohibit Tenant from installing a burglar
alarm within the Premises, provided: (1) Tenant obtains Landlord's consent which
will not be unreasonably withheld delayed; (2) Tenant supplies Landlord with
copies of the plans and specifications of the system; (3) such installation
shall not damage the Building; and (4) all costs of installation shall be borne
solely by Tenant.

8. CONTRACTORS: No contract of any kind with any supplier of towels, water,
   -----------
toilet articles, waxing, rug shampooing, venetian blind washing, furniture
polishing, lamp servicing, cleaning of electrical fixtures, removal of waste
paper, rubbish, garbage, or other like service shall be entered into by Tenant,
nor shall any machine of any kind be installed in the Building or the Office
Building Area without the prior written consent of the Landlord. Tenant shall
not employ any persons other than Landlord's janitors for the purpose of
cleaning the Premises without prior written consent of Landlord. Landlord shall
not be responsible to Tenant for any loss of property from the Premises however
occurring, or for any damage to the effects of Tenant by such janitors or any of
its employees, or by any other person or any other cause.

9. PROHIBITED ON PREMISES: Tenant shall not conduct, or permit any other person
   ----------------------
to conduct, any auction upon the Premises, manufacture or store goods, wares or
merchandise upon the Premises without the prior written approval of Landlord,
except the storage of usual supplies and inventory to be used by Tenant in the
conduct of its business, permit the Premises to be used for gambling, make any
unusual noises in the Building, permit to be played musical instrument on the
Premises, permit any radio to be played, or television, recorded or wired music
in such loud manner as to disturb or annoy other tenants, or permit any unusual
odors to be produced on the Premises. Tenant shall not permit any portion of the
Premises to be occupied as an office for a public stenographer or typewriter, or
for the storage, manufacture, or sale of intoxicating beverages, narcotics,
tobacco in any form or as a barber or manicure shop. Canvassing, soliciting and
peddling in the Building and the Office Building Area are prohibited and Tenant
shall cooperate to prevent the same. No bicycles, vehicles or animals of any
kind shall be brought into or kept in or about the Premises.

10. PLUMBING, ELECTRIC AND TELEPHONE WORK: Plumbing facilities shall not be used
    -------------------------------------
for any purpose other than those for which they were constructed; and no
sweepings, rubbish, ashes, newspaper or other substances of any kind shall be
thrown into them. Waste and excessive or unusual amounts of electricity or water
is prohibited. When electric wiring of any kind is introduced, it must be
connected as directed by Landlord, and no stringing or cutting of wires will be
allowed, except by prior written consent of Landlord, and shall be done by
contractors approved by Landlord. The number and locations of telephones,
telegraph instruments, electrical appliances, call boxes, etc. shall be subject
to Landlord's approval.

11. MOVEMENT OF FURNITURE, FREIGHT OR BULKY MATTER: The carrying in or out of
    ----------------------------------------------
freight, furniture or bulky matter of any description must take place
<PAGE>

during such hours as Landlord may from time to time reasonably determine and
only after advance notice to the superintendent of the Building. The persons
employed by Tenant for such work must be reasonably acceptable to the Landlord.
Tenant may, subject to these provisions, move freight, furniture, bulky matter,
and other material into or out of the Premises on Saturdays between the hours of
9:00 a.m. and 1:00 p.m., provided Tenant pays additional costs, if any,
incurred by Landlord for elevator operators or security guards, and for any
other expenses occasioned by such activity of Tenant. If, at least three (3)
days prior to such activity, Landlord requests that Tenant deposit with
Landlord, as security of Tenant's obligations to pay such additional costs, a
sum of which Landlord reasonably estimates to be the amount of such additional
cost, the Tenant shall deposit such sum with Landlord as security of such cost.
There shall not be used in the Building or Premises, either by Tenant or by
others in the delivery or receipt of merchandise, any hand trucks except those
equipped with rubber tires and side guards, and no hand trucks will be allowed
in the elevators without the consent of the superintendent of the Building.

12. SAFES AND OTHER HEAVY EQUIPMENT: Landlord reserves the right to prescribe
    -------------------------------
the weight and position of all safes and other heavy equipment so as to
distribute properly the weight thereof and to prevent any unsafe condition from
arising.

13. ADVERTISING: Landlord shall have the right to prohibit any advertising by
    -----------
Tenant which in Landlord's reasonable opinion tends to impair the reputation of
the Building or its desirability as a building for offices, and upon written
notice from Landlord, Tenant shall refrain from or discontinue such advertising.

14. NON-OBSERVANCE OR VIOLATION OF RULES BY OTHER TENANTS: Landlord shall not be
    -----------------------------------------------------
responsible to Tenant for non-observance or violation of any of these rules and
regulations by any other tenant.

15. AFTER HOURS USE: Landlord reserves the right to exclude from the Building
    ---------------
between the hours of 6:00 p.m. and 8:00 a.m. and at all hours on Saturdays,
Sundays and Building Holidays, all persons who do not present a pass to the
Building signed by the Tenant. Each Tenant shall be responsible for all persons
for whom such a pass is issued and shall be liable to the Landlord for the acts
of such persons.

16. PARKING: Tenant and its employees shall park their cars only in those
    -------
portions of the parking area designated by Landlord.

17. RESERVATION OF RIGHTS: Landlord hereby reserves to itself any and all rights
    ---------------------
not granted to Tenant hereunder, including, but not limited to, the following
rights which are reserved to Landlord for its purposes in operating the
Building:

     a. the exclusive right to the use of the name of the Building for all
purposes, except that Tenant may use the name as its business address and for no
other purposes; and

     b. the right to change the name or address of the Building, without
incurring any liability to Tenant for doing so; and
<PAGE>

     c. the right to install and maintain a sign on the exterior of the
Building; and

     d. the exclusive right to use or dispose of the use of the roof of the
Building; and

     e. the right to limit the space on the directory of the Building to be
allotted to Tenant; and

     f. the right to grant to anyone the right to conduct any particular
business or undertaking in the Building.

18. HEALTH AND SAFETY: The Tenant shall be responsible for initiating,
    -----------------
maintaining and supervising all health and safety precautions and/or programs
required by Law in connection with the Tenant's use and occupancy of the
Premises.

19. HAZARDOUS MATERIALS: The Tenant shall not store, introduce or otherwise
    -------------------
permit any material known to be hazardous within the Premises. Any material
within the Premises which is determined to be hazardous shall be removed and
properly disposed of by the Tenant at the Tenant's sole expense.

                                    --END--
<PAGE>

                                   EXHIBIT C
                                   ---------
                                Fiber Optic Work

           Landlord and Tenant shall install dual fiber optic entrances to the
Building, together with any and all necessary installations to the Building in
order to ensure such fiber optic services via a path diverse fiber ring system.
<PAGE>

                                    EXHIBIT D
                                    ---------

                               BUILDING HOLIDAYS

BUILDING CLOSED ON:

*NEW YEAR'S DAY*

*MEMORIAL DAY*

*INDEPENDENCE DAY*

*LABOR DAY*

*THANKSGIVING DAY*

*CHRISTMAS DAY*
<PAGE>

                                    EXHIBIT E
                                    ---------

                           TENANT ESTOPPEL CERTIFICATE

TO: __________________________("_________") pursuant to that certain __________
Agreement (the "Agreement") dated ________, 199_, by and between____________ and
____________________________________ ("Lessor").

     1. The undersigned ("Lessee") is the lessee under that certain Lease dated
___________, 19_, by and between ____________________________________, as
lessor, and __________________________________________, as lessee (the "Lease"),
covering a portion of those certain premises commonly known and designated as
_______________________________________, Pennsylvania, consisting of
approximately _____________ square feet (the "Premises"). A true, complete and
correct copy of the Lease is attached hereto as Exhibit "A".

     2. The Lease has not been modified, changed, altered or amended in any
respect (except as indicated following this sentence) and is the only lease or
agreement between the undersigned and the Lessor affecting the Premises. If
none, state "none".
________________________________________________________________________________
________________________________________________________________________________

     3. The undersigned has made no agreements with Lessor or its agents or
employees, which are not described in the Lease concerning free rent, partial
rent, rebate of rental payments or any other type of rental concession with
respect to the Lease (except as indicated following this sentence). If none,
state "none".
________________________________________________________________________________
________________________________________________________________________________

     4. The undersigned accepted possession of the Premises on __________, 19__,
currently occupies the Premises and has been open for business since __________,
19__. The current term of the Lease began on ____________, 19__. The current
term of the Lease will expire on __________, 19__, and Lessee has no present
right to cancel or terminate the Lease under the terms thereof, or otherwise. No
rent payable pursuant to the Lease has been prepaid for more than two (2)
months, and no monies otherwise payable to Lessor under the Lease have been paid
in advance of the due date therefor as set forth in the Lease. The fixed minimum
rent currently being paid under the Lease is $__________ per month. Future
changes to the fixed minimum rental are as set forth in the Lease. The
undersigned also pays amounts for percentage rent, insurance and property tax
escalations based upon the square footage of the Premises subject to the Lease,
as set forth in the Lease, which amounts have been paid to and including
_____________, 199_.

     5. The Lease is fully valid and enforceable and is currently in full force
and effect. Neither Lessor or Lessee is in default thereunder, and all
conditions and obligations on the part of Lessor to be fulfilled under the terms
of the Lease have been
<PAGE>

satisfied or fully performed including, without limitation, all required tenant
improvements, allowances, alterations, installations and construction, and
payment therefor has been made in full. Lessee has no offset, claim, defense or
counterclaim against any rent or other sum payable by Lessee under the Lease or
against any other obligation of Lessee under the Lease. No condition exists
which with the giving of notice or the passage of time, or both, would
constitute a default under the Lease.

     6. Lessee has not suffered any assignment of the Lease or sublet the
Premises or any portion thereof, and no person or entity, other than Lessee, has
any possessory interest in the Premises or right to occupy the Premises or any
portion thereof, except as permitted under the Lease.

     7. Lessee claims no right, title or interest in or to the Premises or right
to possession of the Premises, except as lessee under the terms of the Lease.
The Lease does not contain and the undersigned does not have any outstanding
options or rights of first refusal to purchase the Premises or any portion
thereof or the real property of which the Premises are a part, except as
otherwise set forth below. If none, state "none".
________________________________________________________________________________
________________________________________________________________________________

     8. No actions, whether voluntary or otherwise, are pending against the
undersigned under the bankruptcy laws of the United States or any state thereof,
and Lessee knows of no fact or pending or threatened claim or litigation that
might result in the insolvency or bankruptcy of Lessee.

     9. Lessee is a [corporation][limited partnership][general partnership] duly
organized and validly existing and in good standing under the laws of the State
of __________ [and qualified to do business in the State where the Premises is
located]. [__________, a __________, owns and holds all of the issued and
outstanding stock in and of Lessee, and is a separate and distinct entity from
Lessee].

     10. Lessee's occupancy of the Premises complies fully with all local, state
and federal laws, ordinances, codes, rules, regulations and orders including,
without limitation, those concerning hazardous wastes, hazardous materials,
asbestos, oil and underground storage tanks. In addition, no such hazardous
wastes, hazardous materials, asbestos, oil or underground storage tanks have
been or are incorporated in, stored on or under, released from, treated on,
transported to or from or disposed of, on or from the Premises or any portion
thereof.

     11. All inspections, licenses, permits, consents, permissions, approvals
and certificates required, whether by law, regulation or insurance standards, to
be made or issued with respect to the conduct of Lessee's business, the Premises
and the use and occupancy of the Premises by Lessee have been made by or issued
by all necessary private parties, the appropriate governmental or
quasi-governmental authorities or other authorities having jurisdiction over the
Premises and/or Lessee's business, are in full force and effect, and Lessee has
not received notification from any such authority that
                                                                               2
<PAGE>

Lessee or the Premises is in material noncompliance with such laws, regulations
or standards, that the Premises is being used, operated or occupied unlawfully
or that Lessee has failed to obtain such inspections, permits, consents,
permissions, approvals, licenses or certificates, as the case may be. Lessee has
not received notice of any violation or failure to conform with any such law,
ordinance, regulation, standard, license, permit, consent, permission, approval
or certificate.

     12. All insurance policies required to be maintained by Lessee under the
Lease have been maintained, are in full force and effect and all premiums with
respect thereto have been paid in full.

     13. Upon receipt of notice of the closing of the purchase and sale of the
Premises as set forth in the Agreement, Lessee shall recognize ______ as lessor
under the Lease, and all payments of rent and other sums due to Lessor under the
Lease and all communications permitted or required under the Lease shall be
directed to ______ c/o ________________________________________________________,
and all communications permitted or required under the Lease shall be directed
to Lessee at the address for Lessee set forth in the Lease (except as otherwise
indicated following this sentence), unless and until otherwise specified in
written notice by the party to whom notice is to be given at such address. If
none, state "none".
________________________________________________________________________________
________________________________________________________________________________

     14. This certification is made to induce __________ [to enter into the
Agreement][to provide financing to Lessor] knowing that
_________________________ is relying upon the truth of this Tenant Estoppel
Certificate in [entering into the Agreement,][providing such financing] and that
[the acquisition of the Premises by __________ pursuant to the Agreement][the
financing provided to Lessor] shall be deemed good and valuable consideration to
Lessee for the foregoing representations made by Lessee.

Dated this ____ day of __________, 199_.

                                                  LESSEE:

                                                  _____________________________,

                                                  a____________________________

                                                  BY:__________________________
                                                     Name:_____________________
                                                     Title:____________________

                                                                               3
<PAGE>

                                    EXHIBIT F

                             CLEANING SPECIFICATIONS
                             -----------------------

LOBBY AND ENTRANCE AREAS
------------------------

     Daily Cleaning Services
     -----------------------

     1.   Dust and damp mop all lobby and entrance foyers to insure dust free
          floors with specific attention to hard-to-reach areas.

     2.   All ashtrays will be emptied, washed and dried.

     3.   All waste and trash cans will be empties. All waste and trash cans
          will be washed as needed.

     4.   All telephones will be sanitized.

     5.   Vacuum all carpeted areas.

     6.   Dust and wipe clean all desks and chairs.

     7.   Wipe, clean and polish all stainless steel and other metal work.

     8.   Clean all entrance doors.

     9.   All floors to be swept with chemically treated cloths, spot mopped and
          spray buffed.

     10.  Dust and/or wash clean all directory boards and display glass.

     11.  All lights will be turned off, and specified doors locked at the
          completion of cleaning.

     Weekly Cleaning Services
     ------------------------

     1.   Dust and clean all paneling, door trim and other architectural
          louvres, ornamental work, grills, picture frames, thermostats, boards,
          entire doors and woodwork.

     2.   Vacuum all upholstered furniture and wall surfaces.

     3.   Complete high dusting of pictures, frames, etc.
<PAGE>

     4.   Spot clean all carpeted areas.

     5.   Spot clean wall surfaces.

     Quarterly Cleaning Service
     --------------------------

     1.   Scrub and refinish floor areas.

     Yearly Cleaning Services
     ------------------------

     1.   Strip and refinish all floor areas.

GENERAL OFFICE AREAS
--------------------

     Daily Cleaning Services
     -----------------------

     1.   All ashtrays will be empties, washed and dried.

     2.   All waste and trash cans will be emptied. All waste and trash cans
          will be washed as needed.

     3.   All telephones will be cleaned and sanitized.

     4.   All water fountains to be sanitized and polished.

     5.   Dust desk tops.

     6.   Spot clean all wall surfaces and columns.

     7.   Vacuum all carpeted areas; moving light furniture other than desks,
          file cabinets, etc.

     8.   Dust and spot mop all resilient tile floor areas. All floor edges will
          be damp mopped.

     9.   All glass partitions will be spot cleaned.

     Weekly Cleaning Services
     ------------------------

     1.   Dust and clean all paneling, door time, ornamental work, grills,
          picture frames, ventilating louvres, baseboards and entire doors.

     2.   Dust and wipe clean all furniture, fixtures, shelving, cabinets,
          window sills, picture frames, bases of all chairs and desk tops with
          clean cloths.

                                                                               2
<PAGE>

     3.   Wipe clean metal door knobs, light switch plates, mirrors, kick
          plates, door saddles and directional signs.

     Monthly Cleaning Services
     -------------------------

     1.   Complete all high dusting.

     2.   Dust and wipe clean all diffusers and ventilators.

     3.   Damp mop and spray buff all resilient floor areas.

     Bi-Yearly Cleaning Services
     ---------------------------

     1.   Dust blinds.

     Yearly Cleaning Services
     ------------------------

     1.   Snip and refinish all resilient tile floor areas.

RESTROOMS
---------

     Daily Cleaning Services
     -----------------------

     1.   All toilets and urinals will be sanitized and wiped clean.

     2.   All sinks and fixtures will be cleaned with a non-abrasive cleaner,
          sanitized and polished.

     3.   All paper towel and toilet tissue dispensers will be wiped clean.

     4.   All waste baskets and sanitary disposal units will be emptied.

     5.   Clean all mirrors with glass cleaner and chrome with chrome cleaner.

     6.   All hand soap dispensers will be refilled.

     7.   All restroom floors will be damp mopped nightly using disinfectant.

     Weekly Cleaning Services
     ------------------------

     1.   All partitions, tiled walls and vertical surfaces will be wiped clean.

     Monthly Cleaning Services
     -------------------------

     1.   All walls, vertical and horizontal surfaces will be wiped clean and
          sanitized.

                                                                               3
<PAGE>

     Quarterly Cleaning Services
     ---------------------------

     1.   All restroom floors will be machine scrubbed.

CORRIDORS AND COMMON AREAS
--------------------------

     Daily Cleaning Services
     -----------------------

     1.   All ashtrays will be empties, washed and dried.

     2.   All drinking fountains will be sanitized and polished.

     3.   All waste trash cans will be emptied.

     4.   Wipe clean all metal door knobs, light switch plats, kick plates,
          mirrors, door saddles and directional signs.

     5.   Sweep with chemically treated mops; damp mop to remove spill off.

     Weekly Cleaning Services
     ------------------------

     1.   Spray buff all resilient tile floor areas.

     2.   All fire extinguishers will be dusted.

     3.   Spot clean all wall surfaces and columns; including stainless steel
          work.

     4.   Dust and wipe clean all furniture, fixtures, shelving, cabinets,
          window sills and picture frames with clean clothes.

     Monthly Cleaning Services
     -------------------------

     1.   Complete all high dusting.

     2.   Dust and wipe clean all paneling, door trim, ornamental work, grills,
          picture frames, ventilating louvres, baseboards and entire doors.

     Quarterly Cleaning Services
     ---------------------------

     1.   Scrub and refinish all resilient tile floor areas.

     2.   Dust and wipe clean all air diffusers and ventilators.

     Yearly Cleaning Services
     ------------------------

                                                                               4
<PAGE>

     1.   Strip and refinish all resilient tile floor areas.

ELEVATORS
---------

     Daily Cleaning Services
     -----------------------

     1.   All elevators will be cleaned maintaining all metal work throughout.

     2.   All resilient tile floor areas will be swept with a chemically treated
          dust mop and spot mopped.

     Weekly Cleaning Services
     ------------------------

     1.   All resilient tile floors will be mopped and spray buffed.

     2.   All walls will be wiped clean.

     3.   Vacuum elevator door tracks and saddles.

STAIRWELLS AND MISCELLANEOUS
----------------------------

     Weekly Cleaning Services
     ------------------------

     1.   All stairs will be swept and mopped.

     2.   All metal and framework will be dusted and wiped clean.

     3.   All janitorial closets will be kept clean and orderly.

                                                                               5

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