Document:

EXHIBIT 10.12

                             Dated August 4th, 2000

                                          ---

                          SLOUGH TRADING ESTATE LIMITED

                                       to

                             LUCAS SCHAEVITZ LIMITED

                                      -and-

                    MEASUREMENT SPECIALTIES (ENGLAND) LIMITED

                                      -and-

                          MEASUREMENT SPECIALTIES INC.

                                LICENCE TO ASSIGN

                                   relating to

                              543/544 Ipswich Road
                        Trading Estate, Slough, Berkshire

                               BIR_PROP/4126028/O1

<PAGE>

                                LICENCE TO ASSIGN

DATE                                                          August  4th,  2000
                                                                      ---

PARTIES

(1)     SLOUGH TRADING ESTATE  LIMITED  (incorporated  and registered in England
        and Wales under company number 1184323),  the registered office of which
        is at 234 Bath Road Slough SL1 4EE (the "Landlord");

(2)     LUCAS  SCHAEVITZ  LIMITED  (incorporated  and  registered in England and
        Wales under company number 705542), the registered office of which is at
        Stratford Road Solihull West Midlands B90 4LA (the "Tenant");

(3)     MEASUREMENT  SPECIALTIES  (ENGLAND) LIMITED (incorporated and registered
        in England and Wales  under  company  number  4026024),  the  registered
        office of which is at 22 Melton Street London NW1 2BW (the  "Assignee");
        and

(4)     MEASUREMENT  SPECIALTIES, INC. of a New Jersey USA corporation having an
        address at 80 Little Falls Road Fairfield New Jersey 07004 USA (the "New
        Surety").

RECITALS

A.     The  Landlord  is  entitled to the reversion immediately expectant on the
       Term.

B.     The  unexpired  residue  of  the  Term  is  vested  in  the  Tenant.

C.     The  Lease  contains  a  covenant  by  the Tenant not to assign the Lease
       without  the  written  consent  of  the  Landlord.

D.     The  Tenant  wishes  to  assign  the residue of the Term to the Assignee.

<PAGE>

                             IT IS AGREED AS FOLLOWS

1.   DEFINITIONS

In this licence the following definitions apply:

Assignee       the  third  party  to  this  licence;

Assignment     the  assignment  of  the  Lease  by  the  Tenant to the Assignee;

Landlord       the first party  to  this  licence  and  its successors in title;

Lease          a lease made between The Landlord (1) Schaevitz E.M.  Limited (2)
               and Electro  Mechanisms  Holdings  Limited (3) and 14th September
               1977 dated and any document supplemental to or varying such lease
               whether entered into before or after the date of this licence and
               including this licence;

Premises       543/544  Ipswich  Road  Trading  Estate  Slough Berkshire as more
               particularly  described  in  the  Lease;

Surety         the  fourth  party  to  this licence and its successors in title;

Tenant         the  second  party  to  this  licence;

Term           the term of years created by the Lease (and any continuation or
               holding over  of  that  term)

2.   INTERPRETATION

2.1  The  clause  headings  are  for  reference  only  and  do  not  affect  the
     construction of this licence.

2.2  The words  include  and  including  are deemed to be  followed by the words
     without limitation.

2.3  General  words  introduced  by the word  other  do not  have a  restrictive
     meaning by reason of being preceded by words  indicating a particular class
     of acts, things or matters.

                                        2

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2.4  Obligations  owed by or to more  than  one  person  are  owed by or to them
     jointly and severally.

2.5  A reference to a person  includes an individual,  a  corporation,  company,
     firm or  partnership or government  body or agency,  whether or not legally
     capable of holding land.

2.6  A reference to particular legislation is a reference to that legislation as
     amended,  consolidated  or  re-enacted  from time to time and  includes all
     orders,  regulations,  consents,  licences,  notices and  bye-laws  made or
     granted under such legislation.

2.7  Unless otherwise stated, a reference to a clause is a reference to a clause
     or sub-clause of this licence.

2.8  The rights of the  Landlord  under any clause in this  Licence  are without
     prejudice to the rights of the Landlord under any other clause or under the
     Lease or any other security.

3.     CONSENT  TO  THE  ASSIGNMENT

3.1  The  Landlord  consents  to  the  Assignment  on the terms of this licence.

3.2  If the Assignment has not been completed within two months from the date of
     this  licence,  the consent  given in clause 3.1 (but not any other part of
     this licence) will lapse and become void.

4.     ASSIGNEE'S  COVENANT

The  Assignee  covenants  with  the  Landlord:

4.1  that as from the date of the  Assignment  and during the  remainder  of the
     Term,  the  Assignee  and its  successors  in title  will  comply  with the
     covenants and  conditions on the part of the tenant  contained in the Lease
     and will  indemnify  the  Landlord in respect of any failure to comply with
     them.

                                        3

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4.2  to pay the  rents  and other  sums  reserved  by the Lease on the due dates
     through  their  bankers  by  direct  debit  and  will  complete  a  mandate
     accordingly when called upon by the Landlord so to do

5.     NOTIFICATION

The Assignee  covenants with the Landlord to give written notice to the Landlord
of completion of the  Assignment  within twenty eight working days of completion
of the  Assignment,  and to provide  to the  Landlord  a  certified  copy of the
completed  Assignment,  and where the Lease is registered at HM Land Registry to
make application to register the Assignment at HM Land Registry.

6.     COSTS

The  Tenant  shall pay the  Landlord's  costs in  connection  with  this  matter
(including the  preparation  and completion of this Deed)  amounting to 425 plus
VAT.

7.     GENERAL

7.1  This  licence  is  supplemental  to  the  Lease  and  is  a  deed.

7.2  Neither  this  licence  nor the  Assignment  will  release  or  lessen  the
     liability under the Lease of the Tenant or any other person, whether before
     or after the date of this licence.

7.3  Any  breach  of the  terms of this  licence  will  give  rise to a right of
     re-entry under the Lease.

8.   SURETY

8.1  General

     8.1.1     The provisions of this clause 8 will take effect immediately upon
               completion of the Assignment.

     8.1.2     In this clause 8 references to the Assignee are references to the
               third party to this Licence and to its successors in title.

                                        4

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8.2  Guarantee

8.2.1     The Surety irrevocably and unconditionally  guarantees to the Landlord
          that the rent and other  sums due  under  the  Lease  will be duly and
          punctually  paid,  and that all the other  obligations of the Assignee
          under the Lease will be duly  performed  and complied  with, in either
          case whether during or after the end of the Term (however and whenever
          it ends).

8.2.2     The Surety agrees that if at any time the rent or other sums due under
          the  Lease  are not  paid  on  their  due  date,  or any of the  other
          obligations of the Assignee under the lease are not duly performed and
          complied with, it shall, on demand,  pay such sum or perform or comply
          with such obligation.

8.3  Principal  debtor

     As a separate and  independent  obligation  under this Licence,  the Surety
     agrees that if any sum or obligation  expressed to be guaranteed under this
     Licence is not  recoverable  from or enforceable  against the Surety on the
     basis of a guarantee (for whatever  reason),  the Surety shall be liable as
     sole or principal  debtor in respect of such sum or obligation  which shall
     be paid, performed or complied with by the Surety on demand.

8.4  No  discharge  of  Surety

     Without   prejudice  to  subsection   18(3)  of  the  Landlord  and  Tenant
     (Covenants) Act 1995, the Surety's liability under this licence will remain
     in full force and effect and will not be  released or  discharged  nor will
     the  rights  of  the  Landlord  be  prejudiced  or  affected  by any of the
     following:

     8.4.1     any time, indulgence or concession granted by the Landlord to the
               Assignee or to any other person who is liable;

     8.4.2     the  Landlord  dealing  with,  exchanging,  varying or failing to
               perfect or  enforce  any of its rights or  remedies  against  the
               Assignee or any other person who is liable;

     8.4.3     the existence of or dealing  with,  varying or failing to perfect
               or enforce any other  rights or security  which the  Landlord may
               have or acquire  against the  Assignee or any other person who is
               liable in respect of its obligations under the Lease;

                                        5

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     8.4.4     any variation of,  addition to or reduction from the terms of the
               Lease whether or not the same is substantial or is prejudicial to
               the Surety or confers only a personal right or obligation;

     8.4.5     any  non-acceptance  of the  rent or  other  sums  due  from  the
               Assignee under the Lease, in circumstances where the Landlord has
               reason to suspect a breach of its obligations in the Lease;

     8.4.6     the  occurrence  of any of  the  events  set  out in  clause  [ ]
               (Forfeiture)  of the Lease (in  relation  to the  Assignee or the
               Surety);

     8.4.7     a surrender of part of the Premises demised by the Lease,  except
               that  the  Surety  will  have no  liability  in  relation  to the
               surrendered  part in respect of any period  after the date of the
               surrender;

     8.4.8     any incapacity, disability or change in the constitution, status,
               or name of the Assignee or of the Landlord;

     8.4.9     any  amalgamation,  merger or reconstruction by the Landlord with
               any other person or the  acquisition  of the whole or any part of
               its assets or undertaking by any other person

     8.4.10    any  voluntary  arrangement  entered  into by the Assignee or any
               other  person  who is  liable  with  all or any of its  creditors
               (whether or not such  arrangement  binds or is  expressed to bind
               the Landlord);

     8.4.11    any  other  act or  thing  by  virtue  of  which,  but  for  this
               provision, the Surety would have been released or discharged from
               its obligations under this licence, or the rights of the Landlord
               would have been  prejudiced or affected,  other than a release by
               deed, entered into by the Landlord,  in accordance with the terms
               of such deed

     and the  parties  acknowledge  that  each of the  matters  listed  above is
     separate and  independent  and is not to be interpreted in the light of any
     other.

                                        6

<PAGE>

8.5  Waiver  by  Surety  of  its  rights

     8.5.1     Until  all the  liabilities  expressed  to be  guaranteed  by the
               Surety under this licence have been paid, discharged or satisfied
               irrevocably  and in full,  the Surety  agrees  not,  without  the
               consent of the Landlord to:

          (a)  exercise  any  of  its  rights  in  respect  of  the  liabilities
               expressed  to  be  guaranteed  under  this  licence  against  the
               Assignee or any other person who is liable;

          (b)  demand or accept  any  security  from the  Assignee  or any other
               person who is liable in respect of the  obligations of the Surety
               under this licence or in respect of any  indebtedness  due to the
               Surety from the Assignee or any other  person who is liable,  and
               any security received by the Surety in breach of the above or any
               such  security  held by the Surety or at the date of this licence
               shall  be held by the  Surety  on  trust  for  the  Landlord  and
               delivered to the Landlord on demand;

          (c)  claim  any legal or equitable set-off or counterclaim against the
               Assignee  or  any  other  person  who  is  liable;  or

          (d)  claim  or  prove  in   competition   with  the  Landlord  in  the
               liquidation   or   bankruptcy   or  in  any   administration   or
               receivership  of the  Assignee or any other person who is liable,
               or have the  benefit of or share in any  payment or  distribution
               from or composition or arrangement with the Assignee or any other
               person who is liable and any money or other property  received by
               the Surety in breach of this shall be held by the Surety on trust
               for the Landlord and delivered to the Landlord on demand.

     8.5.2     The  obligations of the Surety under this licence may be enforced
               by the Landlord against the Surety;

          (a)  at its  discretion  and  without  first  enforcing  or seeking to
               enforce its rights  against the  Assignee or any other person who
               is liable or  exercising  its rights under any other  security or
               resorting to any other means of payment; and

                                        7

<PAGE>

          (b)  as primary obligations and not merely as obligations of a surety.

8.6  Payment  in  gross

All  dividends,  compositions  and  moneys  received  by the  Landlord  from the
Assignee or any other person which are capable of being  applied by the Landlord
in  satisfaction  of the  liabilities  expressed  to be  guaranteed  under  this
licence,  will be regarded for all  purposes as payments in gross,  and will not
prejudice  the right of the  Landlord  to recover  from the Surety the  ultimate
balance which,  after receipt of such dividends,  compositions  and moneys,  may
remain owing or expressed to be owing to the Landlord.

8.7  Surety  to  take  a  new  lease

     8.7.1     In  this  clause  a  Relevant  Event  is:

          (a)  the  surrender  or  disclaimer  of  the  Lease, or the Assignee's
               obligations  under it by a liquidator or trustee in bankruptcy of
               the  Assignee;

          (b)  the  disclaimer  of  the Lease after it has become bona vacantia;

          (c)  the  forfeiture  of  the  Lease;  or

          (d)  the  Assignee  (being a body corporate) ceasing to exist (whether
               or  not  the  Assignee  is  capable  of  being  reconstituted  or
               reinstated);

     8.7.2     If a Relevant Event occurs the Surety  agrees,  at the request of
               the Landlord made within 12 months  following the Landlord having
               notice of the Relevant Event, to take a new lease of the Premises
               from the Landlord.

     8.7.3     Such  new  lease  shall:

          (a)  be for a term commencing on the date of the Relevant Event and be
               equal to the  unexpired  residue of the term of years  granted by
               the Lease (or the residue  which would be  unexpired  but for the
               Relevant Event) as at the date of the Relevant Event;

          (b)  reserve  a rent  equal  to the  rent  reserved  under  the  Lease
               immediately  before the  Relevant  Event and  otherwise be on the
               same  terms as the Lease but with no  provision  for a  rent-free
               period;  and with the  addition  of the  agreement  mentioned  in
               clause 8.7.4; and

                                        8

<PAGE>

          (c)  take  effect  from  the  date  of  the  Relevant  Event.

     8.7.4     The new lease will contain an agreement  between the Landlord and
               the  lessee  that  for the  purposes  of  section  19(1A)  of the
               Landlord and Tenant Act 1927 the Landlord may give its consent to
               an assignment  of such new lease subject to a condition  that the
               lessee  enters  into an  authorised  guarantee  agreement,  which
               agreement is to be by deed, to provide for a guarantee of all the
               obligations  of the then  assignee  under the new lease  from the
               date of such assignment until such assignee is released by virtue
               of the  Landlord  and  Tenant  (Covenants)  Act  1995,  and which
               provides for all the matters  permitted by section  16(5) of that
               Act and which is otherwise in accordance  with section 16 of that
               Act and in a form reasonably required by the Landlord.

     8.7.5     The new lease will take effect  subject to the Lease,  and if and
               to the extent  that it is still  subsisting,  and  subject to any
               underlease or other interest created or permitted by the Assignee
               or its predecessors in title.

     8.7.6     The Surety shall pay the Landlord's costs (on an indemnity basis)
               in connection  with the grant of such new lease and shall execute
               deliver  and  pay  stamp  duty  on a  counterpart  of it  to  the
               Landlord.

     8.7.7     If the  Landlord  does not require the Surety to take a new lease
               of the Premises,  the Surety shall  nevertheless pay on demand to
               the Landlord a sum equal to the rent and other sums due under the
               Lease which would have been payable but for the Relevant Event in
               respect of the period from the date of the  Relevant  Event until
               12 months  after it, or, if  sooner,  the date the  Premises  are
               re-let.

8.8  Supplementary  provisions

     8.8.1          As and when called  upon to do so by either the  Landlord or
                    the  Assignee,  the Surety  shall  enter  into any  document
                    supplemental  to the  Lease  (by deed if  required)  for the
                    purpose of  consenting  to the Assignee  entering  into such
                    supplemental  document and confirming that,  subject only to
                    subsection 18(3) of the Landlord and Tenant  (Covenants) Act
                    1995, all the  obligations of the Surety will remain in full
                    force and effect in respect of the Lease.

                                        9

<PAGE>

     8.8.2          The Surety  agrees to pay to the Landlord on demand,  and on
                    an  indemnity  basis,  all legal and other costs and charges
                    which may be  payable by the  Landlord  in  relation  to the
                    enforcement of the Surety's obligations in this licence.

     8.8.3          The Surety agrees to pay interest on each amount demanded of
                    it under this licence, at the rate of interest payable under
                    the  Lease  until   payment   (both  before  and  after  any
                    judgement),  except  that  where the sum  demanded  from the
                    Surety is interest due from the Assignee at that rate and is
                    paid by the Surety  immediately  on demand,  the Surety will
                    not be liable to pay further interest on that sum.

     8.8.4          Each of the  provisions  of this  licence  is  distinct  and
                    severable  from the  others,  and if at any time one or more
                    such   provisions   is  or  becomes   illegal,   invalid  or
                    unenforceable   (either  wholly  or  to  any  extent),   the
                    validity,  legality  and  enforceability  of  the  remaining
                    provisions  (or the same provision to any other extent) will
                    not be affected or impaired.

     8.8.5

                    The rights of the Landlord under this licence will enure for
                    the  benefit of the  Landlord  and its  successors  in title
                    without any need for any express assignment of them.

9.   CONTRACT  (RIGHTS  OF  THIRD  PARTIES)  ACT  1999

Unless expressly stated nothing in this Licence will create any rights in favour
of any person pursuant to the Contracts (Rights of Third Parties) Act 1999.

IN WITNESS of which this licence has been duly  executed and is delivered on the
date written at the beginning of this deed.

                                       10

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Original
THE  COMMON  SEAL  OF  SLOUGH       )
TRADING  ESTATE  LIMITED            )
was affixed to this deed in the     )
presence  of:                       )

                                    Director

                                    Secretary/Director

Counterpart

EXECUTED  as  a  deed  by  LUCAS
SCHAEVITZ LIMITED by:

/s/                                                SCHAEVITZ  LIMITED  by:
---------------------------------                  Acting  by  William  Fullmer
Director                                           and  David  Brown,  its
and                                                Attorneys-in-Fact pursuant to
/s/                                                a Power of Attorney dated as
---------------------------------                  of  August  3,  2000.
Secretary/Director

EXECUTED  as  a  deed  by  MEASUREMENT
SPECIALTIES  (ENGLAND)  LIMITED
by:

/s/
---------------------------------
Director
and

/s/
---------------------------------
Secretary/Director

EXECUTED  as  a  deed  by  MEASUREMENT  SPECIALTIES,  INC.
acting  by:

/s/ Joseph R. Mallon Jr.
-------------------------------------------------
    Joseph R. Mallon Jr., Chief Executive Officer

                                       11EXHIBIT 10.13

                          L E A S E  A G R E E M E N T
                          - - - - -  - - - - - - - - -

BY  AND  BETWEEN:
TRANSCUBE  ASSOCIATES,
a  New  Jersey  partnership,

                           "Landlord"

-and-

MEASUREMENT  SPECIALTIES,  INC.,
a  New  Jersey  corporation,

                            "Tenant"

PREMISES:     80  Little  Falls  Road
              Fairfield,  New  Jersey

PREPARED  BY:     ROBERT  K.  BROWN,  ESQ

DATED:

<PAGE>

                                TABLE OF CONTENTS

                                -------------------

1.     LEASED PREMISES. . . . . . . . . . . . . . . . . . . . . . . . . . .  1
       ---------------
2.     TERM OF LEASE. . . . . . . . . . . . . . . . . . . . . . . . . . . .  2
       -------------
3.     RENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2
       ----
4.     CONDITION OF PREMISES. . . . . . . . . . . . . . . . . . . . . . . .  4
       ---------------------
5.     USE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4
       ---
6.     REPAIRS AND MAINTENANCE. . . . . . . . . . . . . . . . . . . . . . .  4
       -----------------------
7.     UTILITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  6
       -------------
8.     TAXES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  6
       -------------
9.     INSURANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8
       -------------
10.    SIGNS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   9
       ------------
11.    FIXTURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  10
       ------------
12.    GLASS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11
       ------------
13.    ASSIGNMENT AND SUBLETTING . . . . . . . . . . . . . . . . . . . . .  11
       ------------------------
14.    FIRE AND CASUALTY . . . . . . . . . . . . . . . . . . . . . . . . .  12
       ----------------
15.    COMPLIANCE WITH LAWS, RULES AND REGULATIONS . . . . . . . . . . . .  14
       -------------------------------------------
16.    INSPECTION BY LANDLORD. . . . . . . . . . . . . . . . . . . . . . .  17
       ---------------------
17.    DEFAULT BY TENANT . . . . . . . . . . . . . . . . . . . . . . . . .  18
       -----------------
18.    LIABILITY OF TENANT FOR DEFICIENCY. . . . . . . . . . . . . . . . .  20
       ----------------------------------
19.    NOTICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  21
       -------
20.    NON-WAIVER BY LANDLORD. . . . . . . . . . . . . . . . . . . . . . .  21
       ----------------------
21.    RIGHT OF TENANT TO MAKE ALTERATIONS

       -----------------------------------
       AND IMPROVEMENTS. . . . . . . . . . . . . . . . . . . . . . . . . .  21
       ---------------
22.    NON-LIABILITY OF LANDLORD . . . . . . . . . . . . . . . . . . . . .  22
       ------------------------
23.    WARRANTY OF TITLE . . . . . . . . . . . . . . . . . . . . . . . . .  22
       ---------------
24.    RESERVATION OF EASEMENT . . . . . . . . . . . . . . . . . . . . . .  23
       ------------------------
25.    AIR, GROUND AND WATER POLLUTION . . . . . . . . . . . . . . . . . .  23
       -------------------------------
26.    FINANCIAL STATEMENTS. . . . . . . . . . . . . . . . . . . . . . . .  23
       -------------------
27.    FORCE MAJEURE . . . . . . . . . . . . . . . . . . . . . . . . . . .  23
       ---------------
28.    STATEMENTS BY LANDLORD AND TENANT . . . . . . . . . . . . . . . . .  24
       ---------------------------------
29.    CONDEMNATION. . . . . . . . . . . . . . . . . . . . . . . . . . . .  24
       ------------
30.    QUIET ENJOYMENT . . . . . . . . . . . . . . . . . . . . . . . . . .  25
       ---------------
31.    SURRENDER OF PREMISES . . . . . . . . . . . . . . . . . . . . . . .  26
       --------------------
32.    INDEMNITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  26
       --------
33.    SHORT FORM LEASE. . . . . . . . . . . . . . . . . . . . . . . . . .  27
       ---------------

<PAGE>

                           TABLE OF CONTENTS CONTINUED

                           ---------------------------

34.    LEASE CONSTRUCTION. . . . . . . . . . . . . . . . . . . . . . . . .  27
       ------------------
35.    BIND AND INURE CLAUSE . . . . . . . . . . . . . . . . . . . . . . .  27
       --------------------
36.    DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . .  28
       ----------
37.    NET RENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  28
       --------
38.    DEFINITION OF TERM OF "LANDLORD". . . . . . . . . . . . . . . . . .  28
       -------------------------------
39.    COVENANTS OF FURTHER ASSURANCES . . . . . . . . . . . . . . . . . .  29
       ------------------------------
40.    LANDLORD'S REMEDIES . . . . . . . . . . . . . . . . . . . . . . . .  29
       ------------------
41.    COVENANT AGAINST LIENS. . . . . . . . . . . . . . . . . . . . . . .  30
       ---------------------
42.    BROKERAGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  30
       ---------
43.    SUBORDINATION OF LEASE. . . . . . . . . . . . . . . . . . . . . . .  30
       ----------------------
44.    MUTUAL PARKING. . . . . . . . . . . . . . . . . . . . . . . . . . .  31
       --------------
45.    SECURITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  31
       --------
46.    SURVIVAL OF OBLIGATION. . . . . . . . . . . . . . . . . . . . . . .  31
       ---------------------
47.    LIMIT OF LANDLORD'S LIABILITY . . . . . . . . . . . . . . . . . . .  32
       -----------------------------
48.    NEW JERSEY ECONOMIC DEVELOPMENT

       -------------------------------
       AUTHORITY CONTINGENCY . . . . . . . . . . . . . . . . . . . . . . .  32
       ---------------------
49.    EXECUTION AND DELIVERY. . . . . . . . . . . . . . . . . . . . . . .  34
       ---------------------

<PAGE>

          THIS  AGREEMENT,  made  the  day of  1994,  by and  between  TRANSCUBE
ASSOCIATES,  a New Jersey  partnership,  having an office at 180 Passaic Avenue,
Fairfield, New Jersey 07004, hereinafter called the "Landlord";  and MEASUREMENT
SPECIALTIES,  INC.,  a New Jersey  corporation,  having an office at 41 Plymouth
Street, Fairfield, New Jersey 07006, hereinafter called the "Tenant".

                              W I T N E S S E T H:

                              - - - - - - - - - -
          WHEREAS,  the Landlord owns certain lands and premises in the Township
of  Fairfield,  County of Essex and State of New  Jersey,  which  said lands and
premises are commonly known as 80 Little Falls Road, Fairfield,  New Jersey, all
as more  particularly  referred to and described by metes and bounds on Schedule
"A" annexed hereto and made a part hereof; and

          WHEREAS, the Landlord has erected a building containing  approximately
125,692  square  feet  (hereinafter  called  the  "building")  on the  lands and
premises aforementioned, of which building the Tenant shall occupy approximately
14,000  square feet,  outside  outside  dimensions to center line of common wall
(hereinafter called the "leases premises"), all in accordance with the terms and
conditions hereinafter mentioned and the considerations herein expressed,

          NOW,  THEREFORE,  KNOW ALL MEN BY THESE  PRESENTS,  that for the rents
reserved, the mutual considerations herein and the parties mutually intending to
be legally bound hereby, the Landlord does demise, lease and let unto the Tenant
and the  Tenant  does rent and take from the  Landlord  the leased  premises  as
described  in  Paragraph  #1, and the  Landlord  and  Tenant do hereby  mutually
covenant and agree as follows:

          1.   LEASED  PREMISES

               ----------------
               The leased premises shall consist of approximately  14,000 square
feet of the building,  outside outside dimensions to center line of common wall,
as said  building  is  located  on the  lands  described  on  schedule  "A" (the
"Property"),  together with all improvements  therein heretofore  constructed by
the  Landlord  for  the  use  of  the  Tenant,   together  with  all  easements,
improvements,  tenements, appurtenances,  hereditaments, fixtures and rights and
privileges appurtenant thereto.

<PAGE>

          2.   TERM  OF  LEASE

               ---------------
               2.1 The Landlord  leases unto the Tenant and the Tenant hires the
leased  premises for the term of sixty one (61)  months,  to commence on June 1,
1994,  and to end on the 30th day of June,  1999,  subject to the  provisions of
Article 2.2 hereof,

               2.2 In the event the leased  premises are delivered to the Tenant
prior to or after June 1, 1994,  the lease term of sixty one (61)  months  shall
commence on the first day of the next  succeeding  month  following  delivery of
possession to the Tenant (hereinafter called the "Commencement  Date") and shall
continue  for a term of sixty one (61)  months  thereafter.  The  Tenant  shall,
however,  pay to the  Landlord  a sum  equal  to the pro  rata  share of one (1)
month's  rent for that portion of the month of Tenant's  occupancy  prior to the
Commencement Date. During said period of partial monthly occupancy,  if any, all
other terms and conditions of this lease shall be applicable to the occupancy of
the leased premises by the Tenant.

          3.   RENT

               ----
               3.1     The  Tenant  shall  pay  to  Landlord  rent  (hereinafter
referred  to  as  the  "Fixed  Rent")  as  follows:
                    (a)    Anything    herein    contained   to   the   contrary
notwithstanding, it is expressly understood and agreed that the Tenant shall not
be responsible  to pay any full or partial  installment of Fixed Rent during the
first month of the lease term. It is understood  and agreed,  however,  that all
other  terms and  conditions  of this lease  shall  apply  during  said  period,
including  Tenant's  obligation  for all  additional  rent and other charges set
forth herein.

                    (b)  Commencing  on the  second  month of the lease term and
continuing through the end of the lease term, the Tenant shall pay Fixed Rent in
the amount of SEVENTY ONE THOUSAND FOUR HUNDRED AND 00/100 ($71,400.00)  DOLLARS
per annum, payable in equal installments of FIVE THOUSAND NINE HUNDRED FIFTY AND
00/100 ($5,950.00) DOLLARS per month

                                        2

<PAGE>

                    (c) The foregoing  installments of Fixed Rent are payable on
the first day of each and every month  during the term of this  lease,  together
with  such  additional  rent or  charges  required  to be paid by the  Tenant as
hereinafter  provided.  The Tenant covenants and acknowledges that its agreement
to pay the Fixed Rent and  additional  rent  without  off-set or  deduction is a
material inducement by the Tenant to the Landlord to enter into the within lease
agreement. Tenant covenants and agrees that in the event of any material dispute
with  respect  to the within  lease,  its  obligation  to pay the Fixed Rent and
additional  rent  shall  continue  without  abatement  notwithstanding  any such
dispute, and the Tenant agrees that it shall seek such other remedies as the law
may allow by way of plenary proceedings with respect to such issues in dispute.

               3.2 Anything hereinabove to the contrary  notwithstanding,  it is
expressly  understood and agreed that the Tenant shall pay to Landlord the first
month's Fixed Rent payable hereunder upon execution of this lease, together with
the security deposit hereinafter referred to.

               3.3 The Tenant's pro rata share for all lease  purposes is hereby
deemed to be 11.14% (hereinafter called "Tenant's Pro Rata Share").

               3.4 "Rent", as sometimes  referred to herein,  shall be deemed to
mean all Fixed rent and  additional  rent payable by the Tenant  pursuant to the
terms and conditions of this lease.

                                        3

<PAGE>

               3.5 Any  installment  of Fixed Rent or  additional  rent accruing
hereunder,  and any other sum payable  hereunder by Tenant to Landlord  which is
not paid prior to the seventh  (7th) day of any lease  month,  shall bear a late
charge of five (5%) per cent of such Fixed Rent or  additional  rent, to be paid
therewith,  and the  failure to pay such  charge  shall be a default.  Such late
charge  shall  be  deemed  to be  additional  rent  hereunder.  It is  expressly
understood  and agreed  that the  foregoing  late  charge is not a penalty,  but
agreed upon  compensation to the Landlord for  administrative  costs incurred by
Landlord in connection with any such late payment.  In addition,  any payment of
Fixed Rent or additional  rent, which is not paid within thirty (30) days of the
date upon which it is due shall  require  the payment of interest at the rate of
one and one-half (1 1/2%) percent per month,  calculated from the date that such
payment was due through the date that any such payment is actually made.

          4.   CONDITION  OF  PREMISES

               -----------------------
               Anything herein contained to the contrary notwithstanding,  it is
expressly  understood and agreed that the Tenant shall take the leased  premises
and improvements as of the  Commencement  Date of the within lease in an "as is"
condition,  without  Landlord having any obligation to perform any repairs or to
install any improvements therein.

          5.   USE

               ---
               The  Tenant  covenants  and  agrees to use and  occupy the leased
premises for offices, warehousing,  engineering, light assembly purposes and for
the operation of a laboratory for electronic  sensors and related products only,
which  use by  Tenant,  however,  is  and  shall  be  expressly  subject  to all
applicable zoning ordinances,  rules and regulations of any governmental  boards
or bureaus having jurisdiction thereof.

          6.   REPAIRS  AND  MAINTENANCE

               -------------------------
               6.1 The Landlord,  shall, with due diligence, at its own cost and
expense,  make all repairs and necessary  replacements  to the exterior  bearing
walls, roof and foundation of the leased premises and the macadam in the parking
area,  provided that any damage to the foregoing is not caused by the negligence
of the Tenant,  its servants,  employees,  invitees or agents, in which case all
necessary  repairs  shall be made at the sole cost and  expense of  Tenant.  The
Landlord  shall maintain and replace the roof leaders,  flashings,  metal gravel
stops,  gutters and drains,  subject to  reimbursement as hereinafter set forth.
Tenant shall  reimburse  Landlord within fifteen (15) days after written demand,
for  Tenant's  a Pro Rata Share of such  costs  with  respect to the  foregoing,
provided  that  Landlord  shall  furnish to Tenant a breakdown  of such cost and
computation of Tenant's obligation with respect thereto.

                                        4

<PAGE>

               6.2 The Tenant  shall,  except as  provided in Article 6.1 above,
take good care of the leased  premises  and, at its cost and  expense,  keep and
maintain  in good  repair the  interior  and  exterior  of the leased  premises,
including,  but not limited to the floor,  loading dock,  windows and doors, the
air-conditioning  and heating plant, the plumbing,  pipes and fixtures belonging
thereto;  and shall  replace all  mechanical  systems and working  parts used in
connection with the air-conditioning,  electrical,  heating and plumbing plants,
fixtures and systems,  including  ballasts and fluorescent  fixtures;  and shall
keep the  water  and  sewer  pipes  and  connections  free  from  ice and  other
obstructions,  and shall generally maintain and repair the interior and exterior
of the leased  premises  and shall,  at the end of the  expiration  of the term,
deliver  up the leased  premises  in good  order and  condition,  damages by the
elements,  ordinary  wear and tear  excepted.  Notwithstanding  the  above,  the
Landlord  agrees  that it shall  guarantee  the  operation  of the  heating  and
air-conditioning system serving the leased premises for the first six (6) months
of the lease term.  Thereafter,  in the event the replacement of the heating and
air-conditioning system is required, the cost of such replacement shall be share
equally  between  Landlord and Tenant.  The Tenant  covenants and agrees that it
shall not cause or permit  any waste  (other  than  reasonable  wear and  tear),
damage or disfigurement to the leased premises, or any overloading of the floors
of the building.

               6.3 The Tenant shall reimburse the Landlord for Tenant's Pro Rata
Share of the Landlord's  total expense in  maintaining,  repairing and replacing
the exterior  lighting,  lawns,  shrubbery,  driveways  and parking areas of the
Property  (except as hereinabove set forth in Article 6.1), which said sum shall
be paid by the Tenant to the Landlord  within fifteen (15) days from the date of
billing and the Landlord shall supply to the Tenant, at its request,  a complete
breakdown at the cost items.  The Landlord shall also keep the walks and parking
area  applicable to the entire  property free and clear of ice, snow and debris,
with Tenant being responsible for Tenant's Pro Rata Share of such expenses.

                                        5

<PAGE>
          7.   UTILITIES

               ---------
               The Tenant  shall,  at its own cost and expense,  pay all utility
meter and service  charge  applicable  to the leased  premises,  including  gas,
electric and water charges,  if any,  janitorial and garbage  disposal  service.
Tenant shall be  permitted  to place a dumpster in the parking area  adjacent to
the leased  premises,  provided that Landlord  shall have the right to determine
the location of such dumpster from time to time. The Tenant shall  reimburse the
Landlord for Tenant's Pro Rata Share of all costs and expenses related to common
area  electric,  sewer and standby  sprinkler  charges,  if any,  for the entire
Property,  said  amounts  to be paid by Tenant  within  fifteen  (15) days after
receipt of Landlord's invoice therefor.

          8.   TAXES

               -----
               8.1 The Tenant, in addition to the rent reserved,  shall,  during
the term of this lease, promptly pay quarterly,  together with the Fixed Rent to
be paid pursuant to Article 3, one-fourth  (1/4th) of Tenant's Pro Rata Share of
all real estate  taxes  assessed  against the  Property  for land,  building and
improvements, including such added assessment or omitted assessment which may be
levied  against  the  Property  for the year 1994,  et seq.,  by the  applicable
governmental  taxing  authority,  said  obligation  to be  prorated  as  of  the
Commencement Date and as of the date of expiration  hereunder as applicable.  In
addition to the  obligation  to pay Tenant's Pro Rata Share of real estate taxes
as hereinabove set forth,  the Tenant shall,  during the term of this lease, pay
at its cost and expense Tenant's Pro Rata Share of any levy for the installation
of  local  improvements  affecting  the  Property  as  may  be  assessed  by any
governmental  boards or bureaus having  jurisdiction  thereof. In the event that
any such assessment is payable by law in installments, Landlord shall pay the

                                        6

<PAGE>

same over the  longest  period  of time  permitted,  and  Tenant  shall  only be
responsible  for Tenant's  Pro Rata Share of those  installments  of  assessment
applicable  to the term of this  lease.  The real estate tax  obligation  of the
Tenant  hereinabove set forth shall include  Tenant's Pro Rata Share, if levied,
of any tax or  imposition  which may be levied  by any  governmental  authority,
agency or  subdivision  thereof  having  jurisdiction  applicable to parking lot
usage.  The Landlord shall furnish to Tenant  annually a copy of the annual real
estate tax bill and a breakdown of Tenant's Pro Rata Share thereof. In the event
of any change in tax rate or  assessment  which shall  require an  adjustment of
increase or decrease in Tenant's annual tax obligation, such difference shall be
adjusted  by  Landlord  and Tenant  annually  during the month of August of each
lease year, or as soon thereafter as is reasonably possible.

               8.2 If at any time  during  the term of this  lease the method or
scope of  taxation  prevailing  at the  commencement  of the lease term shall be
altered,  modified  or  enlarged  so as to cause the  method of  taxation  to be
changed,  in whole or in part, so that in substitution for the real estate taxes
now  assessed  there  may be,  in  whole  or in part,  a  capital  levy or other
imposition based on the value of the Property,  or the rents received therefrom,
or some  other  form of  assessment  based  in  whole  or in part on some  other
valuation  of the  Property,  then and in such event,  such  substituted  tax or
imposition  shall be payable and discharged by the Tenant pro rata in the manner
required  pursuant to such law promulgated  which shall authorize such change in
the scope of taxation, and as required by the terms and conditions of the within
lease.

               8.3 Nothing in this lease  contained  shall require the Tenant to
pay any franchise, estate, inheritance, succession, capital levy or transfer tax
of the Landlord,  or Federal  Income Tax, State Income Tax, or excess profits or
revenue tax, unless such taxes are in substitution  for real property taxes as a
result  of such  change in the  manner  and scope of  taxation  as  hereinbefore
provided in Article 8.3.

                                        7

<PAGE>
          9.   INSURANCE

               ---------
               9.1 The  Landlord  will,  at the pro rata cost and expense of the
Tenant,  obtain for the benefit of the Landlord,  wherein the Landlord  shall be
the named insured,  fire insurance with full extended coverage,  including flood
insurance if required by Landlord insuring the leased premises, in an amount and
value equivalent to the full replacement value of all the insurable improvements
to the Property,  without any deductible clause, which policy of insurance shall
include broad form boiler and machinery coverage  (inclusive of air-conditioning
system, if any) together with insurance coverage against sprinkler damage to the
building and its improvements.  Said insurance,  in any event, shall not be less
than the amount of any first mortgage which may be placed on the leased premises
by the  Landlord and shall be in such form as any such bona fide  mortgagee  may
reasonably  require.  The  Landlord  shall  have the right  from time to time to
determine  the full  replacement  value as may be  required  to comply with full
replacement  insurance  requirements.  The  insurance to be obtained by Landlord
shall include  casualty rent  insurance  payable to and insuring the interest of
the Landlord as to the value of the rental obligation hereunder to the extent of
one (1) year's gross rental value (inclusive of real estate taxes and applicable
insurance premiums).

               9.2 The Tenant  covenants  and agrees  that it will,  at its sole
cost and expense,  carry liability insurance covering the leased premises in the
minimum amount of ONE MILLION  ($1,000,000.00)  DOLLARS per accident for one (1)
person,  TWO MILLION  ($2,000,000.00)  DOLLARS per  accident for two (2) or more
persons, and a minimum amount of ONE HUNDRED THOUSAND  ($100,000.00) DOLLARS for
property damage, and the Tenant further covenants and agrees that it will add as
a party  insured by such policy the  interest of the  Landlord  and will furnish
Landlord with a certificate of said liability insurance.

                                        8

<PAGE>

               9.3 It is  expressly  understood  and agreed that all policies of
insurance  shall contain a clause that the same shall not be canceled  except on
ten (10) days' written notice to any and all parties in interest.

               9.4 The  parties  hereto  mutually  covenant  and agree that each
party,  in  connection  with  insurance  policies  required to be  furnished  in
accordance  with the terms and conditions of this lease,  or in connection  with
insurance  policies  which they  obtain  insuring  such  insurable  interest  as
Landlord  or Tenant may have in its own  properties,  whether  personal or real,
shall  expressly  waive  any  right of  subrogation  on the part of the  insurer
against,  the Landlord or Tenant as the same nay be  applicable,  which right to
the extent not  prohibited  or violative of any such policy is hereby  expressly
waived,  and  Landlord  and Tenant  each  mutually  waive all right of  recovery
against each other, their agents, or employees for any loss, damage or injury of
any nature  whatsoever  to property or person for which either party is required
by this lease to carry insurance.

               9.5 Tenant  shall pay to Landlord  Tenant's Pro Rata Share of the
cost of all  insurance,  except  Tenant shall pay the full premium for liability
insurance and casualty rent insurance  attributable to Tenant's leased premises,
which payment shall be made by Tenant to Landlord within fifteen (15) days after
written demand,  which demand shall include a copy of the insurance premium bill
and Certificate of Insurance,  together with a computation of Tenant's  monetary
obligations in connection therewith.

          10.  SIGNS

               -----
               The Tenant shall have the right and  privilege of erecting on and
at the leased premises only such signs as are required by Tenant for the purpose
of identifying the Tenant. Said signs shall comply with the applicable rules and
regulations   of  the   applicable   governmental   boards  and  bureaus  having
jurisdiction  thereof.  Installation  of all such signs  shall be subject to the
prior  written  consent  and  approval  of  the  Landlord,  which  shall  not be
unreasonably  withheld.  It is expressly  understood  and agreed that the Tenant
shall not erect or construct any signs on the roof or the exterior  walls of the
building.

                                        9

<PAGE>
          11.  FIXTURES

               --------
               11.1 Subject to the limitations  contained in Article 11.2 below,
the Tenant is given the right and privilege of installing and removing property,
equipment  and  fixtures  in the leased  premises  during the term of the lease.
However,  if the Tenant is in default  and moves out,  or is  dispossessed,  and
fails to remove any property,  equipment and fixtures or other property prior to
any such  dispossession  or removal,  then and in that event, the said property,
equipment and fixtures or other property  shall be deemed,  at the option of the
Landlord,  to be abandoned;  or in lieu thereof,  at the Landlord's  option, the
Landlord may remove such property and charge the reasonable  cost and expense of
removal, storage and disposal thereof to the Tenant.

               11.2 Anything to the contrary  contained herein  notwithstanding,
it is expressly  understood and agreed that the Tenant may install,  connect and
operate  equipment as may be deemed  necessary  by the Tenant for its  business,
subject to compliance  with  applicable  rules and  regulations of  governmental
boards  and  bureaus  having  jurisdiction  thereof.  Subject  to the  terms and
conditions of this lease, the machinery, fixtures and equipment belonging to the
Tenant shall at all times be considered and intended to be personal  property of
the Tenant,  and not part of the  realty,  and subject to removal by the Tenant,
provided at the time of such removal, that the Tenant is not in default pursuant
to the terms and conditions of this lease, and that the Tenant,  at its own cost
and expense,  pays for any damage to the leased premises caused by such removal.
Notwithstanding the above, it is expressly understood and agreed that Tenant may
not remove any of its equipment,  fixtures, machinery or other property which is
physically  connected to the  structure of the leased  premises,  without  first
obtaining the prior  written  approval of Landlord.  Landlord's  consent to such
removal may be  conditioned  upon Tenant  delivering  to Landlord a sum of money
which,  in  Landlord's  reasonable  estimation,  will be required to restore any
damage caused by such removal, unless the Tenant restores the damage itself.

                                       10

<PAGE>
          12.  GLASS

               -----
               The Tenant  expressly  covenants and agrees to replace any broken
glass in the windows or other  apertures of the leased premises which may become
damaged or destroyed at Tenant's cost and expense.

          13.  ASSIGNMENT  AND  SUBLETTING

               ---------------------------
               13.1 The Tenant  may not  assign  this lease or sublet the leased
premises  or any part  thereof,  unless it shall  first  advise the  Landlord in
writing, by certified mail, return receipt requested, of its intention to assign
or sublease. In such event the Landlord shall have thirty (30) days from receipt
of such notice to elect to  re-capture  the  premises and  terminate  the within
lease or to  consent  to the  assignment  of the  lease or the  sublease  of the
premises,  which  consent  shall not be  unreasonably  withheld,  providing  the
proposed assignee or subtenant is financially  responsible,  and shall assume in
writing the terms and  conditions  of the within lease on the part of the Tenant
to be performed. In connection with any permitted assignment or subletting,  the
Tenant  shall pay to the  Landlord  one half of any  increment  in rent or other
consideration received by Tenant per square foot per annum over the annual Fixed
Rent in effect from time to time.

               13.2 The  Landlord's  consent shall not be required and the terms
and  conditions of Article 13.1 shall not apply as to Landlord's  right of first
refusal to recapture if the Tenant  assigns this lease or subleases the premises
to a parent,  subsidiary,  affiliate or a company into which Tenant is merged or
with which Tenant is  consolidated,  or to the purchaser of all or substantially
all of the assets of Tenant.

               13.3 In the event of any  assignment or  subletting  permitted by
the Landlord,  the Tenant shall remain and be directly and primarily responsible
for payment and  performance of the within lease  obligations,  and the Landlord
reserves the right,  at all times, to require and demand that the Tenant pay and
perform the terms and conditions of this lease. No such assignment or subletting
shall be made to any Tenant who shall occupy the premises for any use

                                       11

<PAGE>

other than that which is  permitted  to the Tenant,  or for any use which may be
deemed disreputable or extra hazardous,  which would subject the Property to the
provisions of ISRA, as  hereinafter  defined,  or which would in any way violate
applicable laws,  ordinances or rules and regulations of governmental boards and
bodies having jurisdiction.

          14.  FIRE  AND  CASUALTY

               -------------------
               14.1  In  case  of any  damage  to or  destruction  of any of the
building or the leased premises by fire or other casualty  occurring  during the
term of this lease which is not covered by the insurance  required to be carried
by Article 9.1, or which cannot be repaired within one hundred eighty (180) days
from the  happening  of such  casualty,  then,  in such  event,  the term hereby
created  shall,  at the option of the  Landlord  (or in the case of such  damage
occurring to the leased premises,  the Landlord or Tenant),  upon written notice
to the other party as applicable by certified  mail,  return receipt  requested,
within thirty (30) days of such fire or casualty, cease and become null and void
from the date of such  destruction  or damage.  However,  if neither party shall
elect to cancel  this  lease  within  the  thirty  (30) day  period  hereinabove
provided,  the Landlord shall  thereupon  repair and restore the leased premises
with reasonable speed and dispatch, and the rent shall not be accrued after said
damage  or while  the  repairs  and  restorations  are  being  made,  but  shall
recommence immediately after said premises are restored. Landlord, in any event,
shall advise  Tenant in writing as to whether or not the leased  premises can be
restored within the one hundred eighty (180) day period from the date of such

                                       12

<PAGE>

casualty.  Anything in this  Article 14 to the contrary  notwithstanding,  it is
expressly  understood and agreed that the Landlord shall be obligated to restore
the leased premises only to the extent of such cost as will be equivalent to the
proceeds  received by Landlord  pursuant  to the fire  insurance  coverage to be
provided to Landlord as in Article 9 provided. If the insurance proceeds are not
sufficient to restore the premises to  substantially  the same  condition  which
they were in prior to the  casualty,  then the  Landlord  shall have a period of
thirty (30) days within which to determine  whether to terminate the term hereby
created  unless the Landlord and Tenant shall  mutually  agree to the funding of
any such excess  construction  costs. In the event of cancellation in accordance
with this paragraph,  the Tenant shall immediately surrender the leased premises
and the Tenant's  interest in this lease to the  Landlord,  and the Tenant shall
only pay rent to the time of such  destruction  or damage,  in which event,  the
Landlord may re-enter and repossess the leased  premises  thus  discharged  from
this lease and may remove all parties therefrom.

               14.2  In the  event  of  any  insured  casualty  which  shall  be
repairable  within one  hundred  eighty  (180) days from the  happening  of such
damage or  casualty,  and which  repair  and  replacement  is fully  covered  by
insurance  proceeds,  the Landlord shall repair and restore the leased  premises
with  reasonable  speed and dispatch,  and the rent shall abate and be equitably
apportioned  as the case may be as to any portion of the leased  premises  which
shall be unfit  for  occupancy  by the  Tenant,  or which  cannot be used by the
Tenant so as to  conduct  its  business.  The rent,  however,  shall  recommence
immediately upon restoration of the leased  premises.  Notwithstanding  anything
hereinabove  contained,  the Tenant shall have the right and option of canceling
the within lease  agreement in the event of damage or destruction  affecting the
leased premises  during the last year of the lease term,  which damage cannot be
repaired within sixty (60) days of the date thereof.

               14.3 Nothing  hereinabove  contained with respect to the Tenant's
right to abate rent  under  proper  conditions  shall be  construed  to limit or
affect the  Landlord's  right to payment under any claim for damages  covered by
the rent  insurance  policy  pursuant to the  contract  therefor  required to be
provided pursuant to Article 9 of this lease.

                                       13

<PAGE>

               14.4 For the  purposes of this  Article 14, in  determining  what
constitutes  reasonable  speed and  dispatch,  consideration  shall be given for
delays which would be excuses for  non-performance  as in Article 27 hereinafter
provided (Force Majeure).

               14.5 In the event of such  fire or  casualty  as above  provided,
wherein the Landlord shall rebuild,  the Tenant agrees, at its cost and expense,
to forthwith remove any and all of its equipment,  fixtures,  stock and personal
property as the same may be required to permit  Landlord to expedite  rebuilding
and/or  repair.  In any  event,  the  Tenant  shall  assume at its sole risk the
responsibility  for  damage  or  security  with  respect  to such  fixtures  and
equipment in the event the building  area where the same may be located has been
damaged, until the building shall be restored and made secure.

               14.6 Anything in this Article 14 to the contrary notwithstanding,
it is expressly  understood  and agreed that  wherever  reconstruction  shall be
undertaken,  in the event of damage or casualty as in this  Article 14 provided,
the Landlord  shall  prosecute such  reconstruction  with  reasonable  speed and
dispatch.  In the event,  however,  such  reconstruction  or repair shall not be
completed  within two  hundred  ten (210)  days from the date of such  damage or
casualty,  then,  in that  event,  the  Tenant  shall  have  the  option  at the
expiration  of the two  hundred ten (210) day period to  terminate  the lease by
notice in  writing by Tenant to  Landlord  by  certified  mail,  return  receipt
requested. In the event of such termination, neither party shall thereafter have
any  further  liability,  one to the  other,  in  accordance  with the terms and
conditions of the lease. The Landlord during such period of reconstruction shall
give the Tenant  reasonable  notice of the date on which the  building  shall be
ready for re-occupancy.

          15.  COMPLIANCE  WITH  LAWS,  RULES  AND  REGULATIONS

               ------------------------------------------------
               15.1 (i) The Tenant covenants and agrees that upon acceptance and
occupancy of the leased premises,  it will, during the lease term, promptly,  at
Tenant's  cost and expense,  execute and comply with all  statutes,  ordinances,
rules,  orders,  regulations  and  requirements  of the Federal,  State and City
Government and of any and all their  departments and bureaus,  applicable to the
leased premises, as the same may require correction, prevention and abatement of
nuisances, violations or other grievances, in, upon or connected with the leased
premises, arising from the operations of the Tenant therein.

                                       14

<PAGE>

                    (ii) The Tenant  covenants  and agrees,  at its own cost and
expense,  to comply with such  regulations or requests as may be required by the
fire  or  liability  insurance  carriers  providing  insurance  for  the  leased
premises,  and will  further  comply  with such other  requirements  that may be
promulgated by the Board of Fire  Underwriters,  in connection  with the use and
occupancy by the Tenant of the leased premises in the conduct of its business.

                    (iii)  The  Tenant  covenants  and  agrees  that it will not
commit any nuisance,  nor permit the emission of any objectionable  sound, noise
or odors  which  would  be  violative  of any  applicable  governmental  rule or
regulation or would per se create a nuisance.  The Tenant further  covenants and
agrees  that it will  handle and  dispose of all  rubbish,  garbage and waste in
connection  with the Tenant's  operations  in the leased  premises in accordance
with  reasonable  regulations  established  by the Landlord from time to time in
order  to keep  the  premises  in an  orderly  condition  and in  order to avoid
unreasonable  emission of dirt,  fumes,  odors or debris which may  constitute a
nuisance or induce pests or vermin.

               15.2 In case the Tenant  shall fail or neglect to comply with the
aforesaid statutes,  ordinances,  rules, orders, regulations and requirements or
any of them,  or in case the Tenant shall  neglect or fail to make any necessary
repairs,  then the  Landlord or the  Landlord's  agents may after ten (10) days'
notice (except for emergency repairs,  which may be made immediately) enter said
premises and make said repairs and comply with any and all of the said statutes,
ordinances,  rules, orders, regulations or requirements, at the cost and expense
of the Tenant and in case of the Tenant's failure to pay therefor, the said cost
and expense  shall be added to the next  month's  rent and be due and payable as
such,  or the Landlord may deduct the same from the balance of any sum remaining
in the  Landlord's  hands.  This  provision  is in  addition to the right of the
Landlord  to  terminate  this lease by reason of any  default on the part of the
Tenant,  subject  to the rights of the Tenant as  hereinabove  mentioned  in the
manner as in this lease otherwise provided.

                                       15

<PAGE>

               15.3  Without  limiting  anything  hereinabove  contained in this
Article  15,  Tenant  expressly  covenants  and agrees to fully  comply with the
provisions of the New Jersey Industrial Site Recovery Act (N.J.S.A.  13:1K-6, et
seq.)  hereinafter  referred  to as  "ISRA",  and  all  regulations  promulgated
thereunder  (or under its  predecessor  statute,  the New  Jersey  Environmental
Cleanup  Responsibility  Act) prior to the expiration or earlier  termination of
the within  lease,  or at any time that any action of the  Tenant  triggers  the
applicability  of ISRA.  In  particular,  the Tenant agrees that it shall comply
with  the  provisions  of ISRA in the  event  of any  "closing,  terminating  or
transferring" of Tenant's  operations,  as defined by and in accordance with the
regulations which have been promulgated  pursuant to ISRA. In the event evidence
of such  compliance is not  delivered to the Landlord  prior to surrender of the
leased premises by the Tenant to the Landlord,  it is understood and agreed that
the Tenant  shall be liable to pay to the  Landlord an amount equal to two times
the annual Fixed Rent then in effect, prorated on a monthly basis, together with
all applicable  additional  rent from the date of such surrender until such time
as evidence of  compliance  with ISRA has been  delivered to the  Landlord,  and
together with any costs and expenses incurred by Landlord in enforcing  Tenant's
obligations  under this Article 15.3.  Evidence of  compliance,  as used herein,
shall mean a "letter of  non-applicability"  issued by the New Jersey Department
of Environmental Protection and Energy,  hereinafter referred to as "NJDEPE", or
an approved "negative  declaration" or a "remediation action workplan" which has
been fully  implemented and approved by NJDEPE.  Evidence of compliance shall be
delivered to the Landlord, together with copies of all submissions made to, and

                                       16

<PAGE>

received from, the NJDEPE, including all environmental reports, test results and
other supporting  documentation.  In addition to the above, Tenant hereby agrees
that it  shall  cooperate  with  Landlord  in the  event of the  termination  or
expiration  of any other  lease  affecting  the  Property,  or a transfer of any
portion of the  property  indicated on Schedule  "A", or any  interest  therein,
which triggers the provisions of ISRA. In such case, Tenant agrees that it shall
fully   cooperate   with  Landlord  in  connection   with  any   information  or
documentation  which may be  requested  by the  NJDEPE.  In the  event  that any
remediation of the Property is required in connection with the conduct by Tenant
of its business in the leased premises,  Tenant  expressly  covenants and agrees
that it shall be  responsible  for that  portion  of said  remediation  which is
attributable to the Tenant's use and occupancy thereof. Tenant hereby represents
and warrants that its Standard  Industrial  Classification  No. is ___, and that
Tenant shall not generate, manufacture,  refine, transport, treat, store, handle
or dispose of "hazardous  substances" as the same are defined under ISRA and the
regulations  promulgated  pursuant  thereto.  Tenant hereby agrees that it shall
promptly  inform  Landlord  of any change in its SIC number or the nature of the
business to be  conducted in the leased  premises.  The within  covenants  shall
survive the expiration or earlier termination of the lease term.

          16.  INSPECTION  BY  LANDLORD

               ------------------------
               The  Tenant  agrees  that  the  Landlord's   agents,   and  other
representatives,  shall have the right,  during normal  business hours, to enter
into and upon the leased premises,  or any part thereof, at all reasonable hours
for the purpose of examining the same, or for exhibiting the same to prospective
tenants and purchasers in the presence of a representative  of Tenant (except in
the event of emergency) or making such repairs or alterations  therein as may be
necessary  for  the  safety  and   preservation   thereof,   without  unduly  or
unreasonably  disturbing  the  operations of the Tenant  (except in the event of
emergency).

                                       17

<PAGE>

          17.  DEFAULT  BY  TENANT

               -------------------
               17.1     Each  of  the  following  shall  be  deemed a default by
Tenant  and  breach  of  this  lease:
                    (1)  (i)       filing  of  a  petition  by  the  Tenant  for
     adjudication  as  a bankrupt, or for reorganization, or for an arrangement
     under any  federal  or  state  statute.
                         (ii)      dissolution or  liquidation  of  the  Tenant.
                         (iii)     appointment  of  a  permanent  receiver  or a
     permanent  trustee  of  all  or  substantially  all  the property of the
     Tenant.

                         (iv) taking possession of the property of the Tenant by
     a  governmental  officer or agency  pursuant  to  statutory  authority  for
     dissolution, rehabilitation, reorganization or liquidation of the Tenant.

                         (v)     making  by  the Tenant of an assignment for the
     benefit  of  creditors.
                         (vi)     abandonment,  vacation  or  desertion  of  the
     leased,  premises  by  the  Tenant.

          If any event mentioned in this  subdivision (1) shall occur,  Landlord
may thereupon or at any time  thereafter  elect to cancel this lease by ten (10)
days'  notice to the Tenant,  and this lease shall  terminate on the day in such
notice  specified  with the same  force and effect as if that date were the date
herein fixed for the expiration of the term of the lease.

                    (2)  (i)  Default  in the  payment  of  the  Fixed  Rent  or
additional  rent herein  reserved or any part  thereof for a period of seven (7)
days after the same is due and payable as in this lease required.

                         (ii)     A  default  in  the  performance  of any other
covenant or  condition  of this lease on the part of the Tenant to be  performed
for a period of thirty (30) days after notice.  For purposes of this subdivision
(2) (ii)  hereof,  no  default  on the part of  Tenant  in  performance  of work
required to be performed or acts to be done or conditions  to be modified  shall
be deemed to exist if steps shall have been commenced by Tenant diligently after
notice to rectify the same and shall be prosecuted to completion with reasonable
diligence, subject, however, to unavoidable delays.

               17.2 In case of any such default under Article 17.1(2) and at any
time thereafter  following the expiration of the respective  grace periods above
mentioned,  Landlord  may serve a notice upon the Tenant  electing to  terminate
this lease upon a specified  date not less than seven (7) days after the date of
serving such notice and this lease shall then expire on the date so specified as
if that date has been originally fixed as the expiration date of the term herein
granted;  however, a default under Article 17.1(2) hereof shall be deemed waived
if such default is made good before the date  specified for  termination  in the
notice of termination served on Tenant.

                                       18

<PAGE>

               17.3 In case  this  lease  shall be  terminated  as  hereinbefore
provided,  or by summary  proceedings or otherwise,  Landlord or its agents may,
immediately  or at any time  thereafter,  re-enter and resume  possession of the
leased  premises,  and remove all  persons  and  property  therefrom,  either by
summary  proceedings or by a suitable  action or proceeding at law without being
liable for any damages, provided any entry pursuant to the foregoing shall be in
accordance  with law. No re-entry by Landlord shall be deemed an acceptance of a
surrender of this lease.

               17.4 In case this lease shall be terminated  as herein  provided,
or by summary proceedings or otherwise, Landlord may, in its own name and in its
own  behalf,  relet the whole or any  portion  of the leased  premises,  for any
period equal to or greater or less than the  remainder of the then current term,
for any sum  which  it may  deem  reasonable,  to any  tenant  which it may deem
suitable  and  satisfactory,  and  for any use and  purpose  which  it may  deem
appropriate,  and in  connection  with any such  lease  Landlord  may make  such
changes in the character of the  improvements in the leased premises as Landlord
may determine to be appropriate or helpful in effecting such lease and may grant
concessions or free rent.  Landlord agrees that it will take reasonable steps to
mitigate  Tenant's  damages.  Landlord shall not in any event be required to pay
Tenant any surplus of any sums received by Landlord on a reletting of the leased
premises in excess of the rent reserved in this lease.

               17.5 (1) In case this lease is terminated by summary proceedings,
or  otherwise,  as  provided  in this  Article 17, and whether or not the leased
premises be relet,  Landlord  shall be entitled to recover from the Tenant,  the
following:

                                       19

<PAGE>

                         (i)     a  sum equal to all expenses, if any, including
reasonable  counsel fees,  incurred by Landlord in recovering  possession of the
leased  premises,  and all  reasonable  costs and  charges  for the care of said
premises  while  vacant,  which  damages  shall be due and  payable by Tenant to
Landlord  at such time or times as such  expenses  shall have been  incurred  by
Landlord; and

                         (ii)     A  sum  equal to all damages set forth in this
Article  17  and  in  Article  18  hereinafter  referred  to.

                    (2)     Without  any  previous  notice  or  demand, separate
actions  may be  maintained  by  Landlord  against  Tenant  from time to time to
recover any damages which, at the commencement of any such action,  have then or
theretofore  become due and payable to the  Landlord  under this  Article 17 and
subsections hereof without waiting until the end of the then current term.

                    (3) All sums which Tenant has agreed to pay by way of taxes,
sewer charges, water rents or water meter charges,  insurance premiums and other
similar  items  becoming  due from time to time  under the terms of this  lease,
shall be deemed  additional  rent  reserved in this lease  within the meaning of
this Article 17 and subsections hereof.

          18.  LIABILITY  OF  TENANT  FOR  DEFICIENCY

               --------------------------------------
               In the event that the  relation  of the  Landlord  and Tenant may
cease or  terminate  by reason of the default by the Tenant and the  re-entry of
the Landlord as permitted by the terms and conditions contained in this lease or
by the  ejectment  of the  Tenant  by  summary  proceedings  or  other  judicial
proceedings,  or after the  abandonment  of the  premises by the  Tenant,  it is
hereby agreed that the Tenant shall remain liable to pay in monthly payments the
rent which shall  accrue  subsequent  to the re-entry by the  Landlord,  and the
Tenant expressly agrees to pay as damages for the breach of the covenants herein
contained the  difference  between the rent reserved and the rent  collected and
received,  if any, by the Landlord,  during the remainder of the unexpired term,
as the  amount  of such  difference  or  deficiency  shall  from time to time be
ascertained. Anything herein contained to the contrary notwithstanding, the rent
referred  to shall  include the stated  reserved  Fixed Rent  together  with all
additional  rent and charges  required to be paid by the Tenant  under the lease
including  but not  limited  to taxes  and  insurance  costs,  and the  costs of
re-renting.

                                       20

<PAGE>
          19.  NOTICES

               -------
               All notices  required or  permitted  to be given to the  Landlord
shall be given by  certified  mail,  return  receipt  requested,  at the address
hereinbefore set forth on the first page of this lease,  and/or such other place
as the Landlord may designate in writing.

               All notices required or permitted to be given to the Tenant shall
be  given  by  certified  main,  return  receipt   requested,   at  the  address
hereinbefore set forth on the first page of this lease,  and/or such other place
as the Tenant shall designate in writing.

          20.     NON-WAIVER  BY  LANDLORD

                  ------------------------
               The failure of the Landlord to insist upon strict  performance of
any of the covenants or  conditions of this lease,  or to exercise any option of
the  Landlord  herein  conferred  in any one or  more  instances,  shall  not be
construed  as a waiver by the  Landlord of any of its rights or remedies in this
lease, and shall not be construed as a waiver,  relinquishment or failure of any
such covenants, conditions, or options, but the same shall be and remain in full
force and effect.

          21.  RIGHT  OF  TENANT  TO  MAKE  ALTERATIONS  AND  IMPROVEMENTS
               -----------------------------------------------------------
               21.1 The Tenant may make  alterations,  additions or improvements
to the leased  premises  only with the prior  written  consent of the  Landlord,
which consent shall not be  unreasonably  withheld,  provided such  alterations,
additions  or  improvements  do not  require  structural  changes  in the leased
premises,  or do not lessen the value of the leased premises.  Any consent which
Landlord  may give shall be  conditioned  upon Tenant  furnishing  to  Landlord,
detailed  plans and  specifications  with  respect  to any such  changes,  to be
approved  by  Landlord in writing.  As a  condition  of such  consent,  Landlord
reserves  the right to  require  Tenant to  remove,  at  Tenant's  sole cost and
expense, any such alterations or additions prior to the expiration of the lease

                                       21

<PAGE>

term and to restore the leased  premises to the condition  existing prior to the
making of such  alterations  or  additions.  If Landlord  does not require  such
removal,  any such  alterations  or additions  shall be deemed to be part of the
realty upon installation. All such alterations,  additions or improvements shall
be only  in  conformity  with  applicable  governmental  and  insurance  company
requirements  and regulations  applicable to the leased  premises.  Tenant shall
indemnify, defend and save harmless the Landlord against any claim for damage or
injury in  connection  with any of the  foregoing  work which Tenant may make as
hereinabove provided.

               21.2 Nothing herein  contained shall be construed as a consent on
the part of the  Landlord  to subject the estate of the  Landlord  to  liability
under the  Mechanic's  Lien Law of the State of New Jersey,  it being  expressly
understood that the Landlord's estate shall not be subject to such liability.

          22.  NON-LIABILITY  OF  LANDLORD

               ---------------------------
               22.1 It is  expressly  understood  and agreed by and  between the
parties to this agreement that the Tenant shall assume all risk of damage to its
property,  equipment  and fixtures  occurring  in or about the leased  premises,
whatever the cause of such damage or casualty.

               22.2 It is expressly  understood and agreed that in any event the
Landlord  shall not be liable  for any  damage or injury to  property  or person
caused by or resulting from steam,  electricity,  gas, water, rain, ice or snow,
or any leak or flow from or into any part of said  building,  or from any damage
or injury  resulting or arising  from any other cause or  happening  whatsoever,
except  for the  negligence  of  Landlord  or  Landlord's  agents,  servants  or
employees.

          23.  WARRANTY  OF  TITLE

               -------------------
               Landlord  represents that it has title to the Property and leased
premises  which are the  subject of this  lease and that it has the full  right,
capacity and authority to enter into the within lease agreement.

                                       22

<PAGE>

          24.  RESERVATION  OF  EASEMENT

               -------------------------
               The Landlord reserves the right,  easement and privilege to enter
on the Property and the leased premises upon reasonable prior oral notice to the
Tenant  (except in the case of emergency)  in order to install,  at its own cost
and expense,  any storm drains and sewers  and/or  utility  lines in  connection
therewith as may be required by the Landlord.  It is understood  and agreed that
if such work as may be required by Landlord  requires an installation  which may
displace any paving,  lawn, seeded area or shrubs,  the Landlord,  shall, at its
own cost and  expense,  restore said paving,  lawn,  seeded area or shrubs.  The
Landlord covenants that the foregoing work shall not unreasonably interfere with
the normal operation of Tenant's business,  and the Landlord shall indemnify and
save the Tenant harmless in connection with such installations.

          25.  AIR,  GROUND  AND  WATER  POLLUTION

               -----------------------------------
               The Tenant expressly  covenants and agrees to indemnify,  defend,
and save the Landlord  harmless  against any claim,  damage,  liability,  costs,
penalties,  or fines which the Landlord may suffer as a result of air, ground or
water  pollution  caused by the  Tenant in its use of the leased  premises.  The
Tenant  covenants and agrees to notify the Landlord  immediately of any claim or
notice  served upon it with respect to any such claim the Tenant is causing air,
ground or water  pollution;  and the Tenant,  in any event,  will take immediate
steps to halt,  remedy or cure any  pollution of air,  ground or water caused by
the Tenant by its use of the leased premises.

          26.  FINANCIAL  STATEMENTS

               ---------------------
               The Tenant agrees, at the request of the Landlord, to be made not
more than once during any lease year, to furnish its latest  current  income and
balance statements, certified to by an officer of the corporation.

          27.  FORCE  MAJEURE

               --------------
               Except  for the  obligation  of the Tenant to pay rent as in this
lease  provided,  the  period of time  during  which the  Landlord  or Tenant is
prevented from  performing any act required to be performed  under this lease by
reason of fire, catastrophe,  strikes, lockouts, civil commotion, acts of God or
the public enemy, government prohibitions or preemptions,  embargoes,  inability
to  obtain  material  or  labor  by  reason  of   governmental   regulations  or
prohibitions,  the act or default of the other party, or other events beyond the
reasonable  control of Landlord or Tenant, as the case may be, shall be added to
the time for performance of such act.

                                       23

<PAGE>

          28.  STATEMENTS  BY  LANDLORD  AND  TENANT

               -------------------------------------
               Landlord  and Tenant agree at any time and from time to time upon
not less than ten (10) days' prior notice from the other to execute, acknowledge
and deliver to the party  requesting  same, a statement  in writing,  certifying
that this  lease is  unmodified  and in full  force and effect (or if there have
been  modifications,  that the same is in full force and effect as modified  and
stating  the  modifications),  that it is not in default (or if claimed to be in
default,  stating the amount and nature of the default) and specifying the dates
to which the Fixed Rent and additional  rent have been paid in advance,  if any,
and setting  forth the  Commencement  Date and date of expiration of the term of
this lease; it being intended that any such statement delivered pursuant to this
paragraph may be relied upon as to the facts contained therein.

          29.  CONDEMNATION

               ------------
               29.1 If due to condemnation or taking or seizure by any authority
having the right of eminent domain,  (i) more than fifteen (15%) per cent of the
leased premises is taken, or (ii) in the event that more than twenty-five  (25%)
per cent of the Property is taken (including the parking areas, but exclusive of
front,  side and rear set back areas), or (iii) if access to the leased premises
be denied,  which taking in the manner hereinabove  referred to and in excess of
the foregoing percentage amounts shall unreasonably or unduly interfere with the
use of the  building,  ground area,  parking  area, or deny access to the leased
premises,  then and in either of such events as hereinabove provided,  the lease
term created  shall,  at the option of the Tenant,  terminate,  cease and become
null and void from the date when the authority

                                       24

<PAGE>

exercising the power of eminent  domain takes or interferes  with the use of the
leased  premises,  Tenant's use of the ground  area,  parking  area,  or area of
access to the leased  premises.  The Tenant  shall only be  responsible  for the
payment  of rent  until  the time of  surrender.  In any  event,  no part of the
Landlord's  condemnation  award  shall  belong to or be claimed  by the  Tenant.
Without diminishing  Landlord's award, the Tenant shall have the right to make a
claim against the condemning  authority for such independent  claim which it may
have and as may be  allowed by law,  for costs and  damages  due to  relocating,
moving and other similar costs and charges  directly  incurred by the Tenant and
resulting from such condemnation.

               29.2 In the event of any partial  taking which would not be cause
for  termination  of the within  lease or in the event of any partial  taking in
excess of the percentages  provided in subparagraph 29.1, and in which event the
Tenant shall elect to retain the balance of the leased premises  remaining after
such  taking,  then and in  either  event,  the rent  shall  abate in an  amount
mutually  to be  agreed  upon  between  the  Landlord  and  Tenant  based on the
relationship  that the  character  of the  Property  taken bears to the Property
which  shall  remain  after  such  condemnation.  In any  event,  no part of the
Landlord's  condemnation  award  shall  belong to or be claimed  by the  Tenant.
However,  the Landlord shall,  to the extent  permitted by applicable law and as
the  same  may  be  practicable  on the  site  of the  leased  premises,  at the
Landlord's sole cost and expense,  promptly make such repairs and alterations in
order  to  restore  the  building  and/or  improvements  to  the  extent  of the
condemnation award.

          30.  QUIET  ENJOYMENT

               ----------------
               The Landlord  further  covenants  that the Tenant,  on paying the
rental and  performing  the  covenants and  conditions  contained in this lease,
shall and may peaceably and quietly have, hold and enjoy the leased premises for
the term aforesaid.

                                       25

<PAGE>

          31.  SURRENDER  OF  PREMISES

               -----------------------
               On the last day, or earlier  permitted  termination  of the lease
term, Tenant shall quit and surrender the premises in good and orderly condition
and  repair  (reasonable  wear and tear,  and  damage by fire or other  casualty
excepted) and shall  deliver and  surrender the leased  premises to the Landlord
peaceably,  together with all alterations,  additions and improvements in, to or
on the  premises  made by Tenant as  permitted  under the  lease.  The  Landlord
reserves  the right,  however,  to require the Tenant at its cost and expense to
remove any alterations or improvements installed by the Tenant and not permitted
or  consented  to by the Landlord  pursuant to the terms and  conditions  of the
lease,  so as to restore the premises to the condition found at the inception of
the lease term,  which  covenant by Tenant shall  survive the  surrender and the
delivery of the premises as provided  hereunder.  Prior to the expiration of the
lease term the Tenant shall remove all of its property,  fixtures, equipment and
trade  fixtures from the  premises.  All property not removed by Tenant shall be
deemed  abandoned  by  Tenant,  and  Landlord  reserves  the right to charge the
reasonable cost of such removal, storage and disposal of the same to the Tenant,
which obligation shall survive the lease  termination and surrender  hereinabove
provided.  If the  premises  are not  surrendered  at the end of the lease term,
Tenant shall indemnify  Landlord against loss or liability  resulting from delay
by Tenant in surrendering the premises, including, without limitation any claims
made by any succeeding tenant founded on the delay.

          32.  INDEMNITY

               ---------
               Anything  in this  lease  to the  contrary  notwithstanding,  and
without  limiting  the  Tenant's  obligation  to provide  insurance  pursuant to
paragraph 9 hereunder,  the Tenant  covenants and agrees that it will indemnify,
defend  and save  harmless  the  Landlord  against  and  from  all  liabilities,
obligations,  damages, penalties, claims, costs, charges and expenses, including
without  limitation  reasonable  attorneys'  fees,  which may be imposed upon or
incurred by Landlord by reason of any of the following occurring during the term
of this lease:

                                       26

<PAGE>

                    (i)     Any  matter,  cause  or  thing  arising  out of use,
     occupancy,  control  or  management of the leased premises and any part
     thereof;

                    (ii)     Any  negligence on the part of the Tenant or any of
     its  agents,  contractors,  servants,  employees,  licensees  or  invitees;

                    (iii)     Any  accident,  injury,  damage  to  any person or
     property  occurring  in,  or  about  the  leased  premises;

                    (iv) Any  failure on the part of Tenant to perform or comply
     with any of the  covenants,  agreements,  terms or conditions  contained in
     this lease on its part to be performed or complied with.

                    (v) Subject to the exception set forth in Article 22.1,  the
     foregoing  shall not require  indemnity by Tenant in the event of damage or
     injury  occasioned  by the  negligence or acts of commission or omission of
     the Landlord, its agents, servants or employees.

Landlord shall promptly notify Tenant of any such claim asserted  against it and
shall  promptly send to Tenant copies of all papers or legal process served upon
it in  connection  with any action or  proceeding  brought  against  Landlord by
reason of any such claim.

          33.  SHORT  FORM  LEASE

               ------------------
               It is understood  between the parties hereto that this lease will
not be recorded,  but that a short form lease,  describing  the property  leased
hereby,  giving the term of this  lease,  and making  particular  mention of any
special clauses as herein  contained,  may be recorded by Landlord in accordance
with the laws  governing and  regulating  the recording of such documents in the
State of New Jersey.

          34.     LEASE  CONSTRUCTION

                  -------------------
               This lease shall be  construed  pursuant to the laws of the State
of New Jersey.

          35.  BIND  AND  INURE  CLAUSE

               ------------------------
               The terms,  covenants and conditions of the within lease shall be
binding  upon and inure to the  benefit  of each of the  parties  hereto,  their
respective executors, administrators, heirs, successors and assigns, as the case
may be.

                                       27

<PAGE>
          36.  DEFINITIONS

               -----------
               The neuter  gender,  when used  herein and in the  acknowledgment
hereafter set forth, shall include all persons and corporations,  and words used
in the  singular  shall  include  words  in the  plural  where  the  text of the
instrument so requires.

          37.  NET  RENT

               ---------
               It is the purpose and intent of the  Landlord and Tenant that the
rent shall be absolutely net to Landlord,  so that this lease shall yield,  net,
to Landlord,  the rent  specified in paragraph 3 hereof in each month during the
term of the lease,  and that all costs,  expenses and  obligations of every kind
and nature whatsoever  relating to the leased premises which may arise or become
due during or out of the term of this lease, shall be paid by the Tenant, except
for such obligations and charges as have otherwise expressly been assumed by the
Landlord  in  accordance  with the terms and  conditions  of the lease.  Nothing
herein shall require the Tenant to undertake  obligations in connection with the
sale or mortgaging of the leased premises,  unless otherwise  expressly provided
in accordance with the terms and conditions of this lease.

          38.  DEFINITION  OF  TERM  OF  "LANDLORD"
               -----------------------------------
               When  the  term  "Landlord"  is used in this  lease  it  shall be
construed  to mean and  include  only the owner of the fee  title of the  leased
premises.  Upon the  transfer by the  Landlord of the fee title  hereunder,  the
Landlord  shall advise the Tenant in writing by certified  mail,  return receipt
requested  of the name of the  Landlord's  transferee.  In such event,  the then
Landlord  shall be  automatically  freed and relieved from and after the date of
such transfer of title of all personal liability with respect to the performance
of any of the  covenants  and  obligations  on the part of the  Landlord  herein
contained to be  performed,  provided any such  transfer and  conveyance  by the
Landlord is expressly  subject to the assumption by the grantee or transferee of
the  obligations  of the  Landlord  to be  performed  pursuant  to the terms and
conditions of the within lease.

                                       28

<PAGE>

          39.  COVENANTS  OF  FURTHER  ASSURANCES

               ----------------------------------
               If, in connection with obtaining  financing for the  improvements
on  the  leased   premises,   the  Mortgage  Lender  shall  request   reasonable
modifications  in this lease as a condition to such  financing,  Tenant will not
unreasonably withhold,  delay or refuse its consent thereto,  provided that such
modifications do not in Tenant's reasonable judgment increase the obligations of
Tenant hereunder or materially  adversely  affect the leasehold  interest hereby
created or Tenant's  use and  enjoyment  of the leased  premises.  In  addition,
Tenant agrees to execute any  documents  required by Landlord for the purpose of
obtaining  financing  covering the  property of which the leased  premises are a
part, provided it is at the sole cost and expense of the Landlord.

          40.  LANDLORD'S  REMEDIES

               --------------------
               40.1 The rights and remedies  given to the Landlord in this lease
are distinct,  separate and cumulative remedies,  and no one of them, whether or
not exercised by the Landlord,  shall be deemed to be in exclusion of any of the
others.

               40.2 In addition to any other legal  remedies  for  violation  or
breach  by or on the  part of the  Tenant  or by any  undertenant  or by  anyone
holding or claiming  under the Tenant or any one of them,  of the  restrictions,
agreements  or  covenants of this lease on he part of the Tenant to be performed
or fulfilled,  such violation or breach shall be  restrainable  by injunction at
the suit of the Landlord.

               40.3 No  receipt  of money  by the  Landlord  from any  receiver,
trustee or custodian,  debtor in possession,  or any permitted subtenant,  shall
reinstate,  continue  or  extend  the term of this  lease or affect  any  notice
theretofore given to the Tenant, or to any such receiver,  trustee or custodian,
debtor in  possession,  or any  permitted  subtenant,  or operate as a waiver or
estoppel  of the right of the  Landlord  to  recover  possession  of the  leased
premises for any of the causes therein  enumerated by any lawful remedy; and the
failure of the  Landlord to enforce any  covenant or  condition by reason of its
breach by the  Tenant  shall  not be  deemed to void or affect  the right of the
Landlord  to enforce  the same  covenant  or  condition  on the  occasion of any
subsequent default or breach.

                                       29

<PAGE>

          41.  COVENANT  AGAINST  LIENS

               ------------------------
               Tenant agrees that it shall not knowingly encumber,  or suffer or
permit to be  encumbered,  the leased  premises  or the fee thereof by any lien,
charge or  encumbrance,  and  Tenant  shall have no  authority  to  mortgage  or
hypothecate  this lease in any way  whatsoever.  The  violations of this Article
shall be considered a breach of this lease.

          42.  BROKERAGE

               ---------
               The parties hereto  mutually  represent,  one to the other,  that
neither party  engaged the services of a real estate  broker in connection  with
the negotiation and consummation of the within  transaction.  Landlord agrees to
indemnify,  defend and save harmless Tenant in connection with the claims of any
real  estate  broker   claiming   commissions  in  connection  with  the  within
transaction  and claiming  authority from Landlord.  Tenant agrees to indemnify,
defend and save  harmless  Landlord  in  connection  with the claims of any real
estate broker claiming commissions in connection with the within transaction and
claiming authority from Tenant.

          43.  SUBORDINATION  OF  LEASE

               ------------------------
               This lease shall be subject and  subordinate  at all times to the
lien of any  bona  fide  mortgages  now or  hereafter  placed  on the  Property,
building and leased premises without the necessity of any further  instrument or
act on the part of Tenant to effectuate such subordination, but Tenant covenants
and agrees to execute  and  deliver  upon  demand  such  further  instrument  or
instruments  evidencing such  subordination of the lease to the lien of any such
mortgage or ground rent or other encumbrances as shall be desired by a mortgagee
or proposed mortgagee or by any person. Landlord hereby agrees that it shall use
its  best  efforts  to  obtain  for  the  benefit  of  Tenant  a  subordination,
non-disturbance  and attornment  agreement from Landlord's current mortgagee and
from all future mortgagees of the leased premises,  it being understood that any
such agreement shall be written on the mortgagee's customary form.

                                       30

<PAGE>

          44.  MUTUAL  PARKING

               ---------------
               It is expressly  understood  and agreed  between the Landlord and
Tenant that  Landlord  shall  provide  twenty (20) parking  spaces to be used by
Tenant, its employees,  agents and invitees, on a non-exclusive basis with other
Tenant's of the building.  The entire parking area and access  driveways will be
for the mutual use and benefit of the Landlord and Tenant hereunder,  and/or the
Landlord's  other tenants in the building.  The parties agree that they will not
permit the access  driveways to be blocked so as to unreasonably  interfere with
the use of said access driveways and parking area.

          45.  SECURITY

               --------
               Upon  execution of this lease,  the Tenant shall deposit with the
Landlord the sum of ELEVEN THOUSAND NINE HUNDRED AND 00/100 ($11,900.00) DOLLARS
as security for the full and faithful performance of this lease upon the part of
the Tenant to be performed.  Upon  termination of this lease,  and providing the
Tenant is not in default  hereunder and has  performed all of the  conditions of
this lease,  the  Landlord  shall  return the said sum of ELEVEN  THOUSAND  NINE
HUNDRED AND 00/100 ($11,900.00) DOLLARS to the Tenant. Anything herein contained
to the contrary notwithstanding,  it is expressly understood and agreed that the
said security deposit shall not bear interest.  Tenant covenants and agrees that
it will not assign,  pledge,  hypothecate,  mortgage or  otherwise  encumber the
aforementioned  security  during  the  term  of  this  lease.  It  is  expressly
understood  and agreed that the Landlord  shall have the right to co-mingle  the
security funds with its general funds and said security shall not be required to
be segregated.

          46.  SURVIVAL  OF  OBLIGATION

               ------------------------
               It is expressly understood and agreed that in the event there are
any  obligations  of Tenant with respect to payment or  performance  as required
under the terms and  conditions of this lease that shall have not been performed
prior to the  expiration  or  termination  of the lease in  accordance  with its
terms,  such  obligation,  including the obligation to make rent adjustments and
other lease  adjustments,  shall survive the  expiration or  termination  of the
lease term and surrender of the leased premises by the Tenant to the Landlord.

                                       31

<PAGE>

          47.  LIMIT  OF  LANDLORD'S  LIABILITY

               --------------------------------
               Tenant shall look solely to Landlord's estate and property in the
building and Property for the  enforcement  of any judgment or decree  requiring
the  payment of money to Tenant by reason of any  default or breach by  Landlord
under the lease.  In no event shall there be any personal  liability on the part
of Landlord beyond its interest in the building and Property and no other assets
of Landlord or its partners shall be subject to levy,  execution,  attachment or
any other legal process.

          48.  NEW  JERSEY  ECONOMIC  DEVELOPMENT  AUTHORITY  CONTINGENCY
               ----------------------------------------------------------
               48.1 The Tenant  acknowledges  that (i) the Landlord's  permanent
financing has been effectuated by a loan by the New Jersey Economic  Development
Authority ("Authority") of the proceeds of the sale of an Industrial Development
Revenue Bond ("Bond");  (ii) this lease is subject to the prior written approval
of the  Authority  and the  purchaser  of the bond  ("Mortgagee");  and (iii) no
assignment,  reassignment,  transfer or subletting of the Tenant's interest,  in
the lease shall be  attempted  or  effected  by the Tenant,  or any agent of the
Tenant,  without  first  obtaining  the  written  consent of the  Authority  and
Mortgagee.

               48.2 The Tenant acknowledges that all rights of inspection of the
premises  granted  to the  Landlord  under  this  lease  shall also inure to the
benefit of the Authority, the Mortgagee, and their duly authorized agents.

               48.3 The Tenant  shall  operate its  business in the  premises in
compliance  with  all  applicable  rules  and  regulations  promulgated  by  the
Authority  or of any  successor  agency  thereto,  and in  accordance  with  the
description  of its business as contained in the Project  Occupant  Application,
relocation  form or other document  filed with the Authority in connection  with
obtaining the Authority's prior written approval of this lease.

                                       32

<PAGE>

               48.4 The Tenant shall  execute a  Subordination,  Non-disturbance
and Attornment  Agreement as may be reasonably required by the Authority and the
Mortgagee, which Agreement shall be prepared at the Landlord's cost and expense.

               48.5  Tenant  agrees  that  it will  comply  with  all  Authority
regulations in connection with the use of the premises and will file any and all
required certificates applicable to the tenancy by Tenant in connection with its
use and occupancy of the leased premises. Tenant also agrees that it will comply
with any requirement of the Internal Revenue Code or Treasury Regulations, so as
to assure the continuation of Landlord's financing as a tax-free transaction.

               48.6 The Tenant further acknowledges and agrees that in the event
the Tenant  willfully  takes any action which will result in the Bond losing its
Federal Income Tax exemption, the Tenant shall pay to the Landlord as additional
rent hereunder an amount equal to the amount of the additional interest required
to be paid by the  Landlord  under the  terms of the Bond as the  result of such
loss of said Federal  Income Tax  exemption.  Tenant shall not be responsible to
pay the aforementioned  amount of additional interest in the event that the Bond
has become taxable due to requirements of the Authority or the Internal  Revenue
Service  which  interfere  with the use of the leased  premises by Tenant in the
manner contemplated by this lease agreement.  The Tenant acknowledges and agrees
that it shall be  responsible  for said  additional  rent in  amounts  equal and
relative to all past, present and future amounts of additional  interest payable
by the Landlord pursuant to the terms of the Bond by reason of such loss of said
Federal  Income  Tax  exemption  and that all said  amounts of  additional  rent
relating  to said  amounts of  additional  interest on the Bond shall be payable
immediately to the Landlord upon demand.

                                       33

<PAGE>

          49.     EXECUTION  AND  DELIVERY

                  ------------------------
               The  submission  of the within  lease by  Landlord  to Tenant for
review and approval  shall not be deemed an option to lease,  an offer to lease,
or a reservation  of the leased  premises in favor of Tenant,  it being intended
that no rights or  obligations  shall be created by Landlord or Tenant until the
execution  and delivery of the within  lease by Landlord and Tenant,  one to the
other.

          IN WITNESS  WHEREOF,  the parties  have  hereunto  set their hands and
seals or caused these presents to be signed by its proper corporate officers and
caused its proper corporate seal to be hereunto affixed,  the day and year first
above written.

WITNESS:                        TRANSCUBE  ASSOCIATES

/S/                             BY:  /S/
---------------------------        ----------------------------------

WITNESS:

/S/                             BY:  /S/
---------------------------        ----------------------------------

ATTEST:                         MEASUREMENT  SPECIALTIES,  INC.

/S/                             BY:/S/ DAMON GERMANTON  5/5/94
---------------------------        ----------------------------------
                                   DAMON  GERMANTON,  VICE-PRESIDENT

/S/                                /S/ MARK SHORNICK  5/5/94
                                   -----------------------------------
                                BY: MARK SHORNICK, ASST. SECRETARY

                                       34

<PAGE>

EXCEPTING  THEREFROM the following  described premises to be transferred by Deed
of Dedication to The County of Essex,  a Body Politic of the State of New Jersey
for road widening and, other

SCHEDULE  A

-----------

               BEGINNING at a concrete  monument on the  Southerly  side line of
Little Falls Road distant  562.03 feet  Easterly  along same from the  projected
Easterly sideline of Passaic Avenue; thence

(1)     Running along said side line the following six courses, South 86 degrees
        28 minutes 27 seconds East 89.09 feet to a point; thence

(2)     South  78  degrees  49  minutes  51  seconds East 96.00 feet to a point;
        thence

(3)     South  70  degrees  49  minutes  51  seconds East 96.00 feet to a point;
        thence

(4)     South  62  degrees  10  minutes  51  seconds East 96.00 feet to a point;
        thence

(5)     South  50  degrees  19  minutes  51  seconds East 96.00 feet to a point;
        thence

(6)     South  45  degrees  38  minutes  51 seconds East 285.63 feet to a point;
        thence

(7)     South 50 degrees 11 minutes 51 seconds  East 285.63 feet to the Westerly
        line of lands of Joseph Prestifillippo (Lot 22, Bl.2801); thence

(8)     Running along said line of  Prestifillippo,  South 53 degrees 06 minutes
        09 seconds West 262.37 feet to a concrete monument; thence

(9)     Still  along the same, South 5 degrees 09 minutes 09 seconds West 352.02
        feet  to  a  point  in  the  Deepavaal  Brook;  thence

(10)    Running  along the  Deepavaal  Brook,  North 89  degrees  30  minutes 44
        seconds  West 256.18 feet to a point on the  Northerly  line of lands of
        George S. Kent (Lot 14, Block 2801); thence

(11)    Running along said line of Kent,  North 70 degrees 23 minutes 51 seconds
        West 150.00 feet to the Easterly line of lands of Abajian (Lot 28, Block
        2801); thence

(12)    Running  along  said line of  Abajian,  North 9 degrees  47  minutes  36
        seconds  East 222.09 feet to a concrete  monument on the 2nd.  Corner of
        lands  conveyed to John  Glascock  by Deed  recorded in Deed Book L89 on
        page 444, thence

(13)    Running  along  the 1st. course reversed of said Glascock Deed, North 3
        degrees  45  minutes  51  seconds  West  602.44  feet  to the point and
        place of BEGINNING

This  description  was  drawn  in accordance with a survey made by G.C. Stewart,
P.E.  &  L.S.,  dated  November  15,  1984

KNOWN  as  Lot  23  in Block 2801 on Tax Map of the Township of Fairfield, Essex
County,  New  Jersey

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}]]