Document:

Exhibit 10.21

                                 LEASE AGREEMENT

Santiago de Chile, March 1, 2006, Mr. Carlos Tornquist Bertrand, Chilean, an
individual, Los Algarrobos N2228, on behalf of Tor Chile S.A. (herinafter the
"Landloard")Herin after and Mrs. Agustina Byer, Argentinean, married, 115
Crooked Hill Rd. Huntington New York. U.S.A, Passport N(0)24.069.380, on behalf
of Lakeland Industries, 701 Koheler Avenue, Ronkonkoma New York, 11779, U.S.A.
(hereinafter the "Tenant") agree to this lease agreement upon the following
conditions and covenants stated here in.

1.- PROPERTY
The Landlord is the exclusive owner of the property located in Los Algarrobos
N(0)2228, Santiago de Chile, Chile.

The landlord agrees to lease to the Tenant 2 offices totaling 42 square meters,
including usage of a bathroom and kitchen and a warehouse in the property
mentioned above; and the Tenant agrees to use the property as agree herein,
otherwise it will be cause for termination of this lease agreement and Tenant
shall evacuate the property, even when the end of the term of this agreement is
still pending.

2.- PURPOSE
The Tenant agrees to use the property as office space and warehousing of
merchandise exclusively owned by the tenant. This obligation of the Tenant is
essential for the execution of this agreement.

3. OTHER SERVICES INCLUDED IN THIS AGREEMENT.
The Landlord agrees to provide services of electricity, water, alarm system, and
warehouseman, which are included in the monthly rent. This obligation of the
Landlord is essential for the execution of this agreement.

4.- TERM
The term of this lease agreement is from March 1, 2006 to March, 1 2008.

This agreement will expire in the stated term unless both parties shall agree in
writing to extend the term of this agreement or execute another agreement.

In the event there is no written letter extending the term of this agreement, or
a new agreement, and the Tenant shall not vacate the premises, the Tenant shall
pay the Landlord, the sum equal to a monthly rent plus a 20% for any additional
months the Tenant remains and the Landlord shall have all continuing rights
legal actions against the Tenant.

5.- RENT
The parties agree monthly rent shall be US$1,000 for the property and other
services Landlord shall provide. The rent shall be paid in advance, within the
first 5 days of each

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month at the Landlords domicile, through a deposit at the Bank Boston or any
other financial entity stated by the Landlord. The Tenant agrees and consents
that any late payment will result in a 1% interest penalty per day over the
monthly rent.

Landlord grants to Tenant an option to renew this lease agreement after
expiration of the term of this agreement, at which time the parties shall agrees
the amount of new rent and the new covenants of this agreement.

6.- OTHER PAYMENTS.
The tenant is obligated to pay for gas, telephone, freight, and communal
expenses.

7.- TERMINATION
In the event of default in payment on the rent over 10 days of the 5th day of
any month, the Landlord shall immediately terminate this agreement, according to
the law. The Landlord has the right to claim for damages and unpaid rents for
breach of this agreement.

8.- PROHIBITIONS FOR THE TENANT
It is expressly prohibited for the Tenant to assign, sublease or license in
whole or in part the premises; to alter the structure of the property; to
disturb the neighbors; to have animals; to have explosive, flammable or
intoxicating materials in the premises. It is expressly prohibited to use the
premises for any other purposes as stated in section 2 of this agreement. In the
event, the Tenant assigns or subleases the Leased Premises to a third party, the
tenant shall be liable for any damages on the premises and this lease shall be
terminable.

9.- MAINTENANCE
The Tenant shall agree to maintain in perfect conditions, the keys, artifacts,
valves, toilets, plugs, bells, electricity vents; and o repair them and change
them. The Tenant shall take care of the landscaping; clean and maintain the
heating system, and the Tenant shall repair and maintain the premises in good
condition.

The tenant agrees to repair at it's owns expense caused by its ordinary use the
ceiling, walls, glasses, paintings and features of the premise. Any damage that
is the tenants is not obliged to repair structural damages, liking pipes, etc,
which shall be repaired by the Landlord, immediately after notification by the
Tenant. If within 10 days the Landlord does not repair the damages, the Tenant
is entitled to repair the damage and to deduct the cost of the repair from the
monthly rent.

10.-IMPROVEMENTS.
The Tenant is authorized to improve and remodel the property necessary for its
usage. At the termination of this agreement all fixtures installed in, and
improvements made in the Leased Premises, can be removed if the removal does not
damage the structure of the property. All other improvements shall remain as
part of the premises. It is expressly

<PAGE>

agreed that if the agreement is terminated before the expiration of the Term of
this agreement because the Landlord is in breach, the Landlords shall pay the
Tenant for the cost, expenses or value of the fixtures that could not be removed
without damaging the property.

11.-RESTITUTION OF THE PREMISES.
At the end of this agreement the Tenant agrees to return the Leased Premises in
the same condition as when entered and to return the keys to the property.
Furthermore, the Tenant shall provide the Landlord with the rent receipts and
expenses incurred during this agreement.

12.-WARRANTY
To guaranty the maintenance of the premises in the same condition as when
entered; repairs of the damages on any fixtures, or the services and premises;
and in general, to perform all the obligations stated in this agreement; the
Tenant shall make a deposit one month's rent as a security. If at the end of the
Term there is a credit balance in favor of the Tenant, the Landlord agrees to
return such amount to the Tenant, unless the Landlord has a legal right to
exercise in his favor and to deduct damages caused by the Tenant; as well as the
amount of unpaid invoices for electricity, gas, telephone and other expenses
incurred by the Tenant.

13.- DAMAGES
The Landlord shall not be liable for robberies incurred to the property or
damages caused by fires, floods, leacks, broken pipes, damages caused by heat or
humidity and other natural damages.

15.- PROHIBITIONS
The Tenant shall not use the security to pay the monthly rent of any month nor
the last month of the term.

16.-DOMICILE
For all matters pertaining to this agreement the parties agree that the domicile
is Santiago the Chile, and whatever action may be brought, shall be governed by,
construed and enforced in accordance with the Jurisdiction of the Santiago de
Chile.

17. OTHER CONDITIONS.
The rent includes the fixtures that shall be stated in an attachment and signed
by the parties heretp

This agreement is executed March 1, 2006.

Carlos Tornquist                                     Agustina Byer
Tor Chile S.A.                                       Lakeland Industries, Inc.
Landlord                                             TenantExhibit 10.22

                        DATED_______________________2006

            THE TRUSTEES OF THE WALLINGFEN PARK LIMITED PENSION TRUST

                                      -to-

                       LAKELAND INDUSTRIES EUROPE LIMITED

                                 ***************

                                      LEASE
                                  Relating to:
                       Units 9 and 10 and office block at
                     Wallingfen Park, 236 Main Road Newport
                            East Riding of Yorkshire

                                     Ivesons
                                   Solicitors
                                      HULL

<PAGE>

A LEASE DATED
-------------

1.1     The Landlord                     MICHAEL  ROBERT KENDALL AND JUNE JARVIS
                                         of  Wallingfen  Lodge,  236 Main  Road,
                                         Newport,  East  Yorkshire  HU15 2RH and
                                         BARNETT  WADDINGHAM   TRUSTEES  LIMITED
                                         whose registered  office is at Chalfont
                                         Court,    Hill    Avenue,     Amersham,
                                         Buckinghamshire HP6 5BB

1.2.1   The Tenant                       LAKELAND   INDUSTRIES   EUROPE  LIMITED
                                         (Company    Number    04500660)   whose
                                         registered   office   is  at   Unit  11
                                         Wallingfen  Park 236 Main Road  Newport
                                         East Yorkshire HU15 2RH

1.3     The Guarantor                    None

1.4     The Premises                     All that  the  light  industrial  units
                                         known  as Unit 9 and 10  TOGETHER  WITH
                                         the  office  block to the south of Unit
                                         11 all of which form part of  Warehouse
                                         Unit 3 at  Wallingfen  Park,  236  Main
                                         Road,    Newport,    East   Riding   of
                                         Yorkshire   and  are   shown   for  the
                                         purposes of  identification  only edged
                                         red on the Plan

1.5     The Estate                       The   land  and   warehouse   buildings
                                         situate at  Wallingfen  Park,  236 Main
                                         Road,  Newport  (of which the  Premises
                                         forms   part)    together   with   such
                                         additional  land and buildings owned or
                                         acquired by the  Landlord  from time to
                                         time as  shall be  brought  into use in
                                         the Estate

                                       1
<PAGE>

1.6     Contractual Term                 Five (5) years from and  including  the
                                         First day of January 2006

1.7     Rent Commencement Date           the First day of January 2006

1.8     Initial Rent                     Twenty-two Thousand Nine Hundred Pounds
                                         ((pound)22,900.00) exclusive of VAT

1.9     Review Dates                     the First day of  January  2007 and the
                                         First  day  of  January  in  each  year
                                         thereafter  and  Review  Date means any
                                         one of the review dates

1.10    Interest Rate                    4% per  year  above  the  base  lending
                                         rate  of  Barclays  Bank  Plc  or  such
                                         other  Bank  (being  a  member  of  the
                                         Committee   of  London   and   Scottish
                                         Bankers) as the  Landlord may from time
                                         to time nominate in writing

1.11    Permitted User                   General  workshop  storage  and  office
                                         use/light  industrial use or such other
                                         use  that  falls   within   classes  B1
                                         and/or B8 of the  Schedule  to the Town
                                         and  Country   Planning  (Use  Classes)
                                         Order 1987 (as  amended by the Town and
                                         County     Planning    (Use    Classes)
                                         (Amendment)  (England)  Order  2005  as
                                         the  Landlord  shall  from time to time
                                         approve   (such   approval  not  to  be
                                         unreasonably withheld or delayed)

2.     DEFINITIONS
------------------

2.1      For all  purposes  of this  Lease the terms  defined in clauses 1 and 2
         have the meanings specified

                                       2
<PAGE>

2.2      "Access  Roads" means the roadways,  yards and pavements  shown hatched
         blue on the Plan

2.3      "Authorised  Guarantee Agreement" shall have the same meaning as in the
         Landlord and Tenant (Covenants) Act 1995

2.4      "Buildings"  means the  warehouse  building or buildings  now or at any
         time during the Term erected on the whole or part of the Estate

2.5      "the  Industrial  Covenants"  means the  covenants set out in the Third
         Schedule

2.6      "the Insurance  Rent" means the sums which the Landlord shall from time
         to time pay or be required to pay by way of premium

         2.6.1    for  insuring  the  Premises  (including  insuring for loss of
                  Rent) in  accordance  with its  obligations  contained in this
                  Lease and

         2.6.2    for insuring in such amount and on such terms (as the Landlord
                  shall consider appropriate or shall be reasonable) against all
                  liability of the Landlord to third  parties  arising out of or
                  in  connection  with any matter  including  or relating to the
                  Premises

         Provided  that  where any  policy  for such  insurance  includes  other
         property as well as the Premises the Insurance Rent shall be equal to a
         fair and  reasonable  proportion  attributable  to the  Premises (to be
         assessed by the Surveyor  whose  decision shall be final and binding on
         all the parties  hereto) of such sums referred to in  sub-clause  2.6.1
         and 2.6.2.

2.7      "Insured   Risks"   means,   subject  to  reasonable   and   continuing
         availability of insurance cover and without limitation,  fire lightning
         explosion   riot  civil   commotion   malicious   persons  and  vandals
         earthquakes  storm tempest flood  bursting and over flowing water pipes
         tanks  and other  apparatus  impact by road  vehicles  and  non-hostile
         aircraft  (including  articles  dropped from  aircraft)  and such other
         risks  or  contingencies  as the  Landlord  from  time  to  time in its
         reasonable  discretion may think fit to insure  against  subject to any
         exclusions  limitations  and  conditions  contained  in the  Policy  of
         Insurance

2.8      "Interest"  means interest during the period from the date on which the
         payment  is due to the  date of  payment  both  before  and  after  any
         judgement at the Interest Rate then  prevailing or should the base rate
         referred  to in clause 1.10 cease to exist or not be  published  at any
         time

                                       3
<PAGE>

         such other rate of  interest  as is most  closely  comparable  with the
         Interest  Rate to be  agreed  between  the  parties  or in  default  of
         agreement to be determined by the Surveyor  acting as an expert and not
         as an arbitrator

2.9      "the 1954 Act" means the Landlord and Tenant Act 1954 (and all statutes
         regulations and orders included by virtue of clause 3.14)

2.10     "Pipes"  means all pipes  sewers  drains mains ducts  conduits  gutters
         water  courses  wires cables  channels  flues and all other  conducting
         media and includes any fixings  louvres  cowls and any other  ancillary
         apparatus which are in on or under or which serve the Premises

2.11     "the Plan" means the plan annexed to this Lease

2.12     "the  Planning  Acts" means the Town and Country  Planning Act 1990 the
         Planning  (Listed  Buildings  and  Conservation  Areas)  Act 1990,  the
         Planning   (Hazardous   Substances)   Act   1990   and   the   Planning
         (Consequential  Provisions) Act 1990 (and all statutes  regulations and
         orders included by virtue of clause 3.14)

2.13     Rent" means the Initial Rent and rent  ascertained  in accordance  with
         the Second  Schedule and such term does not include the Insurance  Rent
         or Service  Charge but the terms Rents  includes  both the Rent and the
         Insurance Rent and the Service Charge

2.14     "Service  Charge" means such proportion as the gross metric area of the
         Premises  bears to the gross metric area of the Buildings on the Estate
         from  time to time of  which  it  forms  part  (to be  assessed  by the
         Surveyor whose decision reasonably based and reached shall be final and
         binding on all the parties hereto) of the annual  expenditure  referred
         to in Part A of the Fourth Schedule

2.15     "Surveyor" means any suitability  qualified person or firm appointed by
         the Landlord to perform any of the functions of the Surveyor under this
         Lease  (including  an employee of the  Landlord or a company  that is a
         member of the same group as the Landlord  within the meaning of Section
         42 of the 1954 Act and including  also the person or the firm appointed
         by the Landlord to collect the rents)

3.       INTERPRETATION
-----------------------

3.1      The expressions "the Landlord" and "the Tenant" wherever the context so
         admits  include

                                       4
<PAGE>

         the person for the time being  entitled  to the  reversion  immediately
         expectant on the  determination of the Term and the Tenants  successors
         in title respectively and any reference to a superior landlord includes
         the Landlord's  immediate  reversioner (and any superior  landlords) at
         any time

3.2      Where the Landlord the Tenant or the  Guarantor  for the time being are
         two or more persons  obligations  expressed or implied to be made by or
         with such party are deemed to be made by or with such  persons  jointly
         and severally

3.3      Words  importing  one  gender  include  all  other  genders  and  words
         importing the singular include the plural and vice versa

3.4      The expression  "Guarantor"  includes not only the person registered to
         in clause 1.3 (if any) but also any person  who enters  into  covenants
         with the Landlord pursuant to clauses 5.9.5 or 5.25

3.5      The expression "the Premises" includes but without limitation

         3.5.1    the interior faces (including  plaster  surfaces) of all walls
                  and ceiling contiguous with the Premises

         3.5.2    the interior faces (including plaster surfaces) of all columns
                  within the Premises

         3.5.3    the floor  boards of the  Premises  including  beams or joists
                  supporting the same

         3.5.4    the suspended ceilings (if any) and lighting of the Premises

         3.5.5    Doors and all doors contiguous with the Premises including the
                  fasteners catches locks and glass herein

         3.5.6    all windows but excluding the lintels as are  contiguous  with
                  the Premises  including the fasteners catches locks frames and
                  glass therein

         3.5.7    all additions alterations and improvements to the Premises

         3.5.8    all the Landlord's fixtures and fittings and fixtures of every
                  kind which shall from time to time be in or upon the  Premises
                  (whether  originally  affixed  or  fastened  to  or  upon  the
                  Premises or otherwise)  except any such fixtures  installed by
                  the Tenant

         3.5.9    all  Pipes in on under or over  and  exclusively  serving  the
                  Premises

                                       5
<PAGE>

         and excludes:-

         3.5.10   the exterior of the Premises

         3.5.11   the  structure  of the  Premises  (save as may be  included by
                  virtue of clause 3.5.3)

         3.5.12   the foundation of the Premises

         but such  expression  includes no air space above the height of the top
         of the  Premises and  references  to the Premises in the absence of any
         provision to the contrary include any part of the Premises

3.6      The expression "the Term" includes the Contractual  Term and any period
         of holding over or extension or  continuance  of the  Contractual  Term
         whether by statute or common law

3.7      References  to "the last year of the Term" include the last year of the
         Term if the Term shall  determine  otherwise  than by effluxion of time
         and  references  to "the  expiration  of the Term"  include  such other
         determination of the Term

3.8      References  to any right of the Landlord to have access to the Premises
         shall be  construed  as  extending  to any  superior  landlord  and any
         mortgagee of the Premises and to all persons authorised by the Landlord
         and any superior landlord or mortgagee  (including agents  professional
         advisers  contractors or workmen and others) (where such superior Lease
         or  mortgage  grants such right of access to the  superior  Landlord or
         mortgagee)

3.9      Any covenant by the Tenant not to do an act or thing shall be deemed to
         include an  obligation  not to permit or suffer such act or thing to be
         done by another person where the Tenant is aware that such act or thing
         is being done

3.10     Any provision in this Lease referring to the consent or approval of the
         Landlord  shall be construed as also  requiring the consent or approval
         of any mortgagee of the Premises and any superior  landlord  where such
         consent  shall be required but nothing in this Lease shall be construed
         as implying  that any  obligation  is imposed upon any mortgagee or any
         superior  landlord  not  unreasonably  to refuse  any such  consent  or
         approval

3.11     References to "consent of the Landlord" or words to similar effect mean
         a consent  in  writing  signed by or on behalf of the  Landlord  and to
         "approved"  and  "authorised"  or words to similar  effect mean (as the
         case may be) approved or  authorised  in writing by or

                                       6
<PAGE>

         on behalf of the Landlord

3.12     The terms "the parties" or "party" mean the Landlord  and/or the Tenant
         but except where there is an express indication to the contrary exclude
         the Guarantor

3.13     "Development"  has the meaning  given by the Town and Country  Planning
         Act 1990 Section 55

3.14     Any references to a specific statute include any statutory extension or
         modification   amendment  or  re-enactment  of  such  statute  and  any
         regulations or orders made under such statute and any general reference
         to "statute" or  "statutes"  includes  any  regulations  or orders made
         under such statute or statutes

3.15     References  in this Lease to any clause sub clause or schedule  without
         further designation shall be construed as a reference to the clause sub
         clause or schedule to this Lease so numbered

3.16     The clause  paragraph  and  schedule  headings do not form part of this
         Lease  and shall  not be taken  into  account  in its  construction  or
         interpretation

4.       DEMISE
---------------

The Landlord  demises to the Tenant the Premises  EXCEPTING AND RESERVING to the
Landlord the rights  specified in Part I of the First Schedule BUT TOGETHER WITH
the rights  specified  in Part II of the First  Schedule TO HOLD the Premises to
the Tenant for the Contractual Term SUBJECT to all rights  easements  privileges
restrictions  covenants  and  stipulations  of  whatever  nature  affecting  the
Premises  YIELDING  AND  PAYING to the  Landlord

4.1      The Rent  payable  without  deduction  by equal  quarterly  payments in
         advance on the usual quarter days in every year and proportionately for
         any  period  of  less  than a year  the  first  such  payment  being  a
         proportionate  sum in respect of the period from and including the Rent
         Commencement Date to and including the day before the quarter days next
         after the Rent  Commencement  Date to be paid on the date of this Lease
         and

4.2      By way of  further  rent  the  Insurance  Rent  payable  on  demand  in
         accordance  with clause 7 and the Service  Charge payable in accordance
         with the Third Schedule

                                       7
<PAGE>

5.       THE TENANT'S COVENANTS
-------------------------------

The Tenant covenants with the Landlord

5.1      Rent

         5.1.1    to pay the rents on the days and in the manner set out in this
                  Lease and not to  exercise  or seek to  exercise  any right or
                  claim  to  withhold  rent or any  right  or  claim to legal or
                  equitable set-off

         5.1.2    if so  required  in  writing  by the  Landlord  to  make  such
                  payments  by  banker's  order or credit  transfer  to any bank
                  account in the United  Kingdom that the Landlord may from time
                  to time nominate

5.2      Outgoings and VAT
         To pay and to indemnify the Landlord against

         5.2.1    all rates taxes  assessments  duties charges  impositions  and
                  outgoings  which are now or during  the Term  shall be charged
                  assessed  or imposed  upon the  Premises  or upon the owner or
                  occupier  of  them  (excluding  any  payable  by the  Landlord
                  occasioned  by a  receipt  of rents or by any  disposition  or
                  dealing with or ownership of any interest  reversionary to the
                  interest  created  by this  Lease) and if the  Landlord  shall
                  suffer any loss of rating  relief which may be  applicable  to
                  empty  premises  after  the end of the Term by  reason of such
                  relief  being  allowed  to the Tenant in respect of any period
                  before  the  end of the  Term to make  good  such  loss to the
                  Landlord and

         5.2.2    VAT (or any tax of a similar  nature  that may be  substituted
                  for it or levied in addition to it)  chargeable  in respect of
                  any payment made by the Tenant under any of the terms of or in
                  connection  with this Lease or in respect of any payment  made
                  by the  Landlord  where the  Tenant  agrees  in this  Lease to
                  reimburse the Landlord for such payment

5.3      Electricity Gas and Other Services Consumed
         To pay to the  suppliers  and to  indemnify  the  Landlord  against all
         charges for water  electricity gas and other services  consumed or used
         at or in relation to the Premises (including meter rents)

5.4      Repair Cleaning Decoration etc

         5.4.1    to keep the Premises in as good repair as the same are now in,
                  as  evidenced by the

                                       8
<PAGE>

                  Schedule of Condition  attached hereto excepting damage caused
                  by an Insured Risk save to the extent that the insurance money
                  is  irrecoverable  in consequence of any act or default of the
                  Tenant or anyone at the Premises  expressly or by  implication
                  with the Tenant's authority and under the Tenant's control

         5.4.2    to  replace  from  time to time the  Landlord's  fixtures  and
                  fittings in the Premises  which may be or become beyond repair
                  at any time during or at the expiration of the Term

         5.4.3    to clean the Premises and keep them in a clean condition

         5.4.4    the  Tenant  must  redecorate  the  Premises  in  a  good  and
                  workmanlike  manner  and with  appropriate  materials  of good
                  quality  as  often  as is in  the  reasonable  opinion  of the
                  Landlord or his Surveyor necessary in order to maintain a high
                  standard of decorative finish and preserve the Premises and in
                  the last  year of the  Term  and when in the last  year of the
                  Term any  change to the tints,  colours  and  patterns  of the
                  decoration  are  to be  first  approved  by  the  Landlord  in
                  writing, provided that the covenants relating to the last year
                  of the Term are not to apply where the Tenant has  redecorated
                  the Premises less than 18 months before the end of the Term.

         5.4.5    not to deposit or permit to be deposited  any waste rubbish or
                  refuse on the Access Roads

         5.4.6    not to keep or store on the Access  Roads any vehicle  caravan
                  or movable dwelling

         5.4.7    not to  cause  the  Access  Roads to be  untidy  or in a dirty
                  condition  and in  particular  (but  without  prejudice to the
                  generality  of the above)  not to  deposit  on them  refuse or
                  other   materials  5.4.8  where  the  use  of  Pipes  boundary
                  structures or other things is common to the Premises and other
                  property to be  responsible  for and to indemnify the Landlord
                  against  all sums due from and to  undertake  all work that is
                  the  responsibility  of the owner  lessee or  occupier  of the
                  Premises in relation to those Pipes or other things

         5.5      Waste and Alterations

         5.5.1    Not to

                  5.5.1.1  commit any waste

                  5.5.1.2  make any addition to the Premises

                                       9
<PAGE>

                  5.5.1.3  unite the Premises with any adjoining premises

                  5.5.1.4  make any alteration to the Premises save as permitted
                           by the following provisions of this clause

         5.5.2    not to make any alterations to the Premises without

                  5.5.2.1  obtaining and complying  with all necessary  consents
                           of any competent  authority and paying all charges of
                           any such authority in respect of such consents

                  5.5.2.2  making an application supported by drawings and where
                           appropriate a specification in duplicate  prepared by
                           an  Architect  or  member of some  other  appropriate
                           profession

                  5.5.2.3  paying the fees of the Landlord any superior landlord
                           any  mortgagee  and  their  respective   professional
                           advisers and

                  5.5.2.4  entering  into such  covenants  as the  Landlord  may
                           require as to the execution and  reinstatement of the
                           alterations  and  in  the  case  of  any  works  of a
                           substantial  nature the Landlord may require prior to
                           the  commencement  of such works the provision by the
                           Tenant of adequate  security in the form of a deposit
                           of money or the  provision  of a bond as assurance to
                           the  Landlord  that any works  which may from time to
                           time be  permitted  by the  Landlord  shall  be fully
                           completed

         5.5.3    subject  to the  provisions  of  clause  5.5.2 not to make any
                  internal  non-structural  alterations to the Premises  without
                  the  consent  of  the  Landlord   (such   consent  not  to  be
                  unreasonably withheld or delayed)

         5.5.4    to remove any additional  buildings  additions  alterations or
                  improvements  made to the  Premises at the  expiration  of the
                  Term if so requested by the Landlord and to make good any part
                  or parts of the Premises which may be damaged by such removal

         5.5.5    not to make  connection with the Pipes that serve the Premises
                  otherwise  than in  accordance  with plans and  specifications
                  approved by the Landlord (such approval not to be unreasonably
                  withheld  or   delayed)   subject  to  consent  to  make  such
                  connections having previously been obtained from the competent
                  statutory authority or undertaker

                                       10
<PAGE>

5.6      Aerials Signs and Advertisements

         5.6.1    Not to erect any pole mast or wire (whether in connection with
                  telegraphic  telephonic  radio or television  communication or
                  otherwise) upon the Premises

         5.6.2    Not to affix to or exhibit on the  outside of the  Premises or
                  to or through any window of the Premises nor display  anywhere
                  on the  Premises  any  placard  sign  notice  fascia  board or
                  advertisement  except  any sign  permitted  by  virtue  of any
                  consent given by the Landlord pursuant to a covenant contained
                  in this Lease

5.7      Statutory Obligations

         5.7.1    At the  Tenant's  own expense to execute all works and provide
                  and  maintain  all  arrangements  upon  or in  respect  of the
                  Premises or the use to which the  Premises  are being put that
                  are required in order to comply with the  requirements  of any
                  statute  (already  or in  the  future  to be  passed)  or  any
                  government   department   local   authority  other  public  or
                  competent   authority  or  Court  of  competent   jurisdiction
                  regardless  of whether  such  requirements  are imposed on the
                  lessor the  lessee or the  occupier  PROVIDED  THAT the Tenant
                  shall  not  be   responsible   for  the   remediation  of  any
                  contamination in on or under the Premises or the Estate at the
                  date of this Lease

         5.7.2    Not to do in or near the  Premises  any act or thing by reason
                  of which the Landlord may under any statute incur have imposed
                  upon  it  or  become   liable  to  pay  any  penalty   damages
                  compensation costs charges or expenses

         5.7.3    Without  prejudice to the generality of the above to comply in
                  all respects with the provisions of any statutes and any other
                  obligations imposed by law or by any byelaws applicable to the
                  Premises or in regard to carrying on the trade or business for
                  the time being carried on the Premises

5.8      Access of Landlord and Notice to Repair

         5.8.1    To permit the Landlord:

                  5.8.1.1  to  enter  upon the  Premises  on  giving  reasonable
                           notice  to  the   Tenant   and   causing   as  little
                           inconvenience  and  disturbance to the Tenant and its
                           business as possible for the purpose of  ascertaining
                           that the covenants and  conditions of this Lease

                                       11
<PAGE>

                           have been observed and performed

                  5.8.1.2  to view (and to open up floors under the parts of the
                           Premises  where such  opening up is required in order
                           to view)  the state of repair  and  condition  of the
                           Premises and

                  5.8.1.3  to give to the Tenant (or leave upon the  Premises) a
                           notice specifying any repairs cleaning maintenance or
                           painting  that the  Tenant  has  failed to execute in
                           breach of the terms of this Lease and to request  the
                           Tenant to execute  the same  within  such  reasonable
                           time as the notice may specify  having  regard to the
                           nature and extent of the work  required to remedy the
                           breach  including  the making good of such opening up
                           (if any) providing that any such opening-up  shall be
                           made  good by and at the cost of the  Landlord  where
                           such  opening-up  reveals no breaches of the terms of
                           this Lease

         5.8.2    As soon as possible to repair  cleanse  maintain and paint the
                  Premises as required by such notice

         5.8.3    If within one month of the service of such a notice the Tenant
                  shall not have commenced and be proceeding diligently with the
                  execution of the work  referred to in the notice or shall fail
                  to complete the work within two months or if in the Landlord's
                  Surveyors  reasonable  opinion  the Tenant is unlikely to have
                  completed  the work within such period to permit the  Landlord
                  to enter the Premises to execute such work as may be necessary
                  to comply with the notice and to pay to the  Landlord the cost
                  of  so  doing  and  all  expenses  incurred  by  the  Landlord
                  (including legal costs and surveyors fees) within 14 days of a
                  written demand

5.9      Alienation

         5.9.1    Not to hold on  trust  for  another  or  (save  pursuant  to a
                  transaction  permitted by and effected in accordance  with the
                  provisions  of this  Lease)  part with the  possession  of the
                  whole or any part of the Premises or permit  another to occupy
                  the whole or any part of the Premises

         5.9.2    Not to assign or charge part only of the  Premises  and not to
                  underlet the whole or any part

                                       12
<PAGE>

                  of the Premises

         5.9.3    Not to  assign or charge  the  whole of the  Premises  without
                  prior   consent  to  the  Landlord  such  consent  not  to  be
                  unreasonably  withheld or delayed  provided  that the Landlord
                  shall be entitled  (for the purposes of Section  19(1A) of the
                  Landlord and Tenant Act 1925) in relation to an assignment

                  5.9.3.1  to withhold  its consent in any of the  circumstances
                           set out in clause 5.9.4

                  5.9.3.2  to impose all or any of the matters set out in clause
                           5.9.5 as a condition of its consent

                  The provisos to this subclause shall operate without prejudice
                  to the right of the  Landlord to withhold  such consent on any
                  other  ground or  grounds  where such  withholding  of consent
                  would be  reasonable  or to impose any  further  condition  or
                  conditions  upon the grant of consent where the  imposition of
                  such condition or conditions would be reasonable

         5.9.4    The  circumstances  referred to in clause 5.9.3.1 above are as
                  follows:-

                  5.9.4.1  where the  assignee is an  associated  company of the
                           Tenant

                  5.9.4.2. where in the  reasonable  opinion of the Landlord the
                           proposed  assignee is not  responsible or respectable
                           or of sufficient  financial  standing to enable it to
                           comply with the tenant's covenants in the Lease

                  5.9.4.3  where prior to completion of the intended  assignment
                           the  Tenant  has not paid  all of the  rents or other
                           monetary   payments   due   hereunder   or  had   not
                           substantially  observed or performed the covenants on
                           the part of the Tenant herein contains

         5.9.5    The matters referred to in clause 5.9.3.2 as conditions are as
                  follows:-

                  5.9.5.1  that the Tenant enters into an  Authorised  Guarantee
                           Agreement on or before  completion of the  assignment
                           whereby  the  Tenant   covenants  by  deed  with  the
                           Landlord to guarantee the performance by the proposed
                           Assignee of all  covenants  on the part of the Tenant
                           and  conditions  contained  in this  Lease  in a form
                           reasonably  required by the  Landlord to  incorporate
                           all or any of the terms set out in the Fifth Schedule
                           (as if  reference  therein  to "the  Guarantor"  were
                           reference  to the  Tenant)  with such  amendments  or
                           additions  as the  Landlord  may  require

                                       13
<PAGE>

                           within the  provisions  of S.16 of the  Landlord  and
                           Tenant  (Covenants) Act 1995 save that such guarantee
                           shall not  extend  to any  liability  restriction  or
                           other  requirement  arising  after  the  Assignee  is
                           released from its covenants by virtue of the Landlord
                           and Tenant (Covenants) 1995

                  5.9.5.2  that the Tenant  provides two  references  confirming
                           that the proposed  assignee  responsible  and will be
                           able to pay the rent and meet the other outgoings and
                           liabilities  arising  under the Lease from any of the
                           following   namely  a  former   landlord  bank  trade
                           creditor  solicitor or  accountant  (except where the
                           financial  status of the  proposes  assignee  is such
                           that it would be  unreasonable  for the  Landlord  to
                           require such references)

                  5.9.5.3  that  any  assignee  of the  whole  of  the  Premises
                           covenants  by deed with the Landlord to pay the rents
                           reserved by this Lease and to observe and perform all
                           covenants  on the part of the Tenant  and  conditions
                           contained   in  this  Lease  during  the  Term  until
                           released  by  virtue  of  the   Landlord  and  Tenant
                           (Covenants) Act 1995

                  5.9.5.4  that  (where  it  is  reasonable  so to  require)  in
                           addition  to the  guarantee  provided  by the  Tenant
                           pursuant to sub clause  5.9.5.1 at least two sureties
                           acceptable to the Landlord (acting reasonably) act as
                           sureties  for  the  assignee  in  order  to  covenant
                           jointly  and  severally  with the  Landlord  that the
                           assignee  will pay the rents  reserved  by this Lease
                           and perform and observe the  covenants on the part of
                           the Tenant and the conditions contained in this Lease
                           and  otherwise  in the  terms  set  out in the  Fifth
                           Schedule  hereto  (as if  reference  therein  to "the
                           Guarantor"  were  reference to the  sureties) or such
                           other terms as the Landlord may reasonably require

                  5.9.5.5  that the Tenant has with the  application for consent
                           to  assign   produced  to  the  Landlord   either  an
                           undertaking  from its solicitors to pay or such other
                           security   satisfactory   to  the  Landlord   (acting
                           reasonably)  to cover payment of, whether the licence
                           is  granted  or  not,  all  costs  and  disbursements
                           (including  irrecoverable

                                       14
<PAGE>

                           VAT) which may be properly  incurred by the  Landlord
                           in  connection   with  the  application  for  consent
                           (including without prejudice to the generality of the
                           foregoing) its solicitors' costs, it surveyors' costs
                           and the costs of any  accountants  employed to advise
                           in  whether  the  intended  assignee   satisfies  any
                           financial  criteria  specified  in this Lease or is a
                           person  of  such   financial   standing  that  it  is
                           reasonable  for the Landlord to grant licence for the
                           assignment of this Lease to it

         5.9.6    Within  28  days  of  any  assignment   charge  underlease  or
                  sub-underlease   or  any   transmission  or  other  devolution
                  relating to the Premises to produce for registration  with the
                  Landlord's  solicitors  such deed to  document  or a certified
                  copy of it an to pay to the Landlord's  solicitors  reasonable
                  charges for the registration of every such document

         5.9.7    Notwithstanding   clause   5.9.1  the  Tenant  may  share  the
                  occupation  of the  whole or any part of the  Premises  with a
                  company  which is a member  of the  same  group as the  Tenant
                  (within the meaning of Section 42 of the 1954 Act) for so long
                  as both  companies  shall  remain  members  of that  group and
                  otherwise  than in a manner that  transfers or creates a legal
                  estate

5.10     Nuisance etc and Residential Restrictions

         5.10.1   Not to do nor allow to remain upon the Premises anything which
                  may be or become  or cause a  nuisance  annoyance  disturbance
                  inconvenience  injury or damage to the Landlord or its tenants
                  or  the  owners  or  occupiers  of  adjacent  or  neighbouring
                  premises

         5.10.2   Not to use  the  Premises  for a sale  by  auction  or for any
                  dangerous   noxious   noisy  or   offensive   trade   business
                  manufacture  or occupation  nor for any illegal or immoral act
                  or purpose

         5.10.3   Not to use  the  Premises  as  sleeping  accommodation  or for
                  residential  purposes nor keep any animal fish reptile or bird
                  anywhere on the Premises

         5.11     Landlords Costs
         To pay to the  Landlord on an  indemnity  basis all costs fees  charges
         disbursements  and  expenses   (including   without  prejudice  to  the
         generality of the above those payable to counsel solicitors

                                       15
<PAGE>

         surveyors  and  bailiffs)  properly  and  reasonably  incurred  by  the
         Landlord in relation to or incidental to

         5.11.1   every  application made by the Tenant for a consent or licence
                  required by the  provisions of this Lease whether such consent
                  or licence is granted or refused or  proffered  subject to any
                  qualification  or  condition  or whether  the  application  is
                  withdrawn

         5.11.2   the preparation and service of a notice under the Landlord and
                  Tenant  [Covenants]  Act 1995  Section  17 or under the Law of
                  Property   Act  1925   Section   146  or  incurred  by  or  in
                  contemplation of proceedings  under section 146 or 147 of that
                  Act notwithstanding  that forfeiture is avoided otherwise than
                  by relief granted by the court

         5.11.3   the recovery or attempted recovery of arrears of rent or other
                  sums due from the Tenant and

         5.11.4   any steps taken in  contemplation of or in connection with the
                  preparation and service of a schedule of dilapidations  during
                  or  within 2 months  after  the  expiration  of the Term  (but
                  relating in all cases to dilapidations which occurred prior to
                  such expiration of the Term)

5.12     The Planning Acts

         5.12.1   Not to commit any breach of planning  control (such term to be
                  construed  as it is used in the  Planning  Acts) and to comply
                  with the provisions and requirements of the Planning Acts that
                  affect  the  Premises  whether  as to the  Permitted  User  or
                  otherwise  and to  indemnify  (both  during or  following  the
                  expiration  of the  Term)  and keep the  Landlord  indemnified
                  against all liability  whatsoever  including cost and expenses
                  in respect of any contravention

         5.12.2   At  the   expense  of  the  Tenant  to  obtain  all   planning
                  permissions  and to serve all such  notices as may be required
                  for the carrying out of any operations or user on the Premises
                  which may constitute  Development provided that no application
                  for  planning  permission  shall be made  without the previous
                  consent of the Landlord  (such consent not to be  unreasonably
                  withheld or delayed) in any case where the application for and
                  implementation of such planning  permission will not create or
                  give  rise  to any  tax or

                                       16
<PAGE>

                  other fiscal liability for the Landlord

         5.12.3   Subject only to any statutory direction to the contrary to pay
                  and  satisfy  any  charge  or levy  that may  subsequently  be
                  imposed under the Planning Acts in respect of the carrying out
                  or maintenance of any such  operations or the  commencement or
                  continuance of any such user

         5.12.4   Notwithstanding  any  consent  which  may  be  granted  by the
                  Landlord  under  this  Lease  not to  carry  out or  make  any
                  alteration  or addition  to the  Premises or any change of use
                  until

                  5.12.4.1 all  necessary  notices  under the Planning Acts have
                           been served and copies produced to the Landlord

                  5.12.4.2 all  necessary  permissions  under the Planning  Acts
                           have been obtained and produced to the Landlord and

                  5.12.4.3 the Landlord has  acknowledged  that every  necessary
                           planning   permission   is  acceptable  to  it  (such
                           acknowledgement not to be unreasonably  withheld) the
                           Landlord being entitled to refuse to acknowledge  its
                           acceptance  of a planning  permission  on the grounds
                           that  any  condition  contained  in  it  or  anything
                           omitted from it or the period referred to in it would
                           be (or be likely to be) prejudicial to the Landlord's
                           interest in the Premises  whether during or following
                           the expiration of the Term

         5.12.5   Unless the Landlord  shall  otherwise  direct to carry out and
                  complete before the expiration of the Term

                  5.12.5.1 any  works  stipulated  to  be  carried  out  to  the
                           Premises by a date subsequent to such expiration as a
                           condition of any planning  permission granted for any
                           Development  begun before the  expiration of the Term
                           and

                  5.12.5.2 any Development begun upon the Premises in respect of
                           which the Landlord  shall or may be or become  liable
                           for any change or levy under the Planning Acts

5.13     Plans Documents and Information

                                       17
<PAGE>

         5.13.1   If called  upon to do so to  produce  to the  Landlord  or the
                  Surveyor  all  plans  documents  and  other  evidence  as  the
                  Landlord  may  require  in order to  satisfy  itself  that the
                  provisions of this Lease have been complied with

         5.13.2   If  called  upon  to do so to  furnish  to  the  Landlord  the
                  Surveyor or any person  acting as the third party  determining
                  the Rent in default of agreement between the parties under any
                  provisions  for  rent  review  contained  in this  Lease  such
                  information  as may  reasonably  be  requested  in  writing in
                  relation to any pending or intended step under the 1954 Act or
                  the implementation of any provision for rent review

5.14     Indemnities
         To be  responsible  for  and to keep  the  Landlord  fully  indemnified
         against  all damage  damages  losses  costs  expenses  actions  demands
         proceedings claims and liabilities made against or suffered or incurred
         by the Landlord  arising  directly or indirectly  out of

         5.14.1   any act omission or negligence of the Tenant or any persons at
                  the  Premises   expressly  or  impliedly   with  the  Tenant's
                  authority and under the Tenant's control

         5.14.2   any breach or  non-observance  by the Tenant of the  covenants
                  conditions  or other  provisions  of this  Lease or any of the
                  matters to which this demise is subject

5.15     Encroachments

         5.15.1   Not to stop  up  darken  or  obstruct  any  windows  or  light
                  belonging to the Building

         5.15.2   To take all  reasonable  steps to  prevent  any  window  light
                  opening  doorway path passage  pipe or other  encroachment  or
                  easement  being made or acquired in against out of or upon the
                  Premises  and to notify the Landlord  immediately  if any such
                  encroachment  or  easement  shall  be  made  or  acquired  (or
                  attempted  to be made or  acquired)  and at the request of the
                  Landlord to adopt such means as shall  reasonably  be required
                  to prevent such  encroachment  or the  acquisition of any such
                  easement

         5.15.3   Not in any  event to place or store or leave any  articles  or
                  materials of any description on the retained parts (as defined
                  in clause 5 of Part A of the Fourth Schedule)

         5.15.4   Not to allow at any time any vehicular or other obstruction by
                  any  employee or invitees of the Tenant of the highways or the
                  access and service  roads or the service  areas or

                                       18
<PAGE>

                  forecourts  serving  the  Premises  or any other  parts of the
                  Estate

5.16     Yield Up

         At the expiration of the Term:

         5.16.1   To yield up the Premises in repair and in accordance  with the
                  terms of this Lease

         5.16.2   To give up all keys of the Premises to the Landlord and

         5.16.3   To remove all signs  erected by the Tenant in upon or near the
                  Premises  and  immediately  to make good any damage  caused by
                  such removal

5.17     Interest on Arrears

         5.17.1   If the Tenant shall fail to pay the rents or any other sum due
                  under  this  Lease  within  14 days of the  date  due  whether
                  formally  demanded or not the Tenant shall pay to the Landlord
                  Interest  on the  rents or other  sum from the date  when they
                  were due to the date on which they are paid (both  dates being
                  inclusive)  and such interest  shall be deemed to be rents due
                  to the Landlord

         5.17.2   Nothing in the  preceding  clause shall  entitle the Tenant to
                  withhold  or delay any  payment  of the rents or any other sum
                  due under this  Lease  after the date upon which they fall due
                  or in any way prejudice  affect or derogate from the rights of
                  the Landlord in relation to such  non-payment  including  (but
                  without  prejudice to the  generality  of the above) under the
                  proviso for re-entry contained in this Lease

5.18     Statutory Notices Etc

         To give full  particulars to the Landlord of any notice direction order
         or proposal for the Premises  made given or issued to the Tenant by any
         local or public  authority  within 7 days of receipt and if so required
         by the Landlord to produce it to the Landlord and without delay to take
         all necessary steps to comply with the notice direction or order and at
         the  request of the  Landlord  but at the cost of the Tenant to make or
         join with the  Landlord  in making  such  objection  or  representation
         against or in respect of any notice  direction order or proposal as the
         Landlord shall deem expedient

5.19     Sale of Reversion etc

                                       19
<PAGE>

         To permit

         5.19.1   the Landlord at any time upon reasonable  notice to enter upon
                  the Premises and affix and retain  anywhere  upon the Premises
                  (but  not so as to  obstruct  access  to or  egress  from  the
                  Premises) a notice for the sale of the Landlord's reversionary
                  interest

         5.19.2   upon reasonable notice at any time during the Term prospective
                  purchasers of or agents instructed in connection with the sale
                  of the Landlord's  reversion or of any other interest superior
                  to the Term to view the Premises without interruption provided
                  they are  authorised  in writing by the Landlord or its agents
                  and provided in exercising  such access as little  disturbance
                  or  interference  as  possible in caused to the Tenant and its
                  Permitted User:-

         5.20     Reletting Board

                  To permit the Landlord at any time during the last 6 months of
                  the  Contractual  Term and at any time  thereafter  unless the
                  Tenant shall have made a valid court application under Section
                  24 of the 1954 or  otherwise  be  entitled in law to remain in
                  occupation  or to a new tenancy of the  Premises (or sooner if
                  the Rent  reserved by clause 4.1 or any part of it shall be in
                  arrear and  unpaid for longer  than 28 days) to enter upon the
                  Premises and affix and retain  anywhere upon the Premises (but
                  not so as to obstruct access to or egress from the Premises) a
                  notice for  reletting  the  Premises and during such period to
                  permit  persons with the written  authority of the Landlord or
                  its agent at reasonable times of the day to view the Premises

         5.21     Defective Premises

                  To give notice to the  Landlord of any defect in the  Premises
                  coming to the notice of the Tenant which might give rise to an
                  obligation on the Landlord to do or refrain from doing any act
                  or thing in order to comply with the  provisions of this Lease
                  or the duty of care  imposed on the  Landlord  pursuant to the
                  Defective  Premises Act 1972 or otherwise  and at all times to
                  display and maintain  all notices  which the Landlord may from
                  time  to  time  reasonably  require  to be  displayed  at  the
                  Premises

         5.22     Landlords Rights

                                       20
<PAGE>

                  To  permit  the  Landlord  at all  times  during  the  Term to
                  exercise  without  interruption  or  interference  any  of the
                  rights granted to it by virtue of the provisions of this Lease

         5.23     The Industrial Covenants
                  To observe and perform the Industrial covenants

         5.24     Keyholders
                  To ensure that at all times the Landlord has written notice of
                  the name  address  and  home  telephone  number  of at least 2
                  keyholders of the Premises

         5.25     New Guarantor
                  Within 14 days of the death  during the Term of any  Guarantor
                  or of such  person  becoming  bankrupt  or having a  receiving
                  order made  against him or having a receiver  appointed  under
                  the  Mental  Health  Act 1983 or  being a  company  passing  a
                  resolution  to wind up or enter into  liquidation  or having a
                  receiver  to give  notice  of this to the  Landlord  and if so
                  required by the  Landlord at the expense of the Tenant  within
                  28  days  to  produce  some  other  person  acceptable  to the
                  Landlord  to execute a  guarantee  in respect of the  Tenant's
                  obligations  contained  in  this  Lease  in  the  form  of the
                  Guarantor's covenants contained in this Lease

         5.26     Landlords Costs on Grant etc
                  To pay all  proper  fees and  disbursements  of the  Landlords
                  Solicitors  agents  and  surveyors  and all  other  costs  and
                  expenses   incurred  by  the   Landlord  in  relation  to  the
                  negotiation preparation execution and grant of this Lease save
                  that the first  (pound)500.00  plus VAT of such fees costs and
                  expenses as aforesaid shall be paid by the Landlord

6.       THE LANDLORD'S COVENANTS
---------------------------------

The Landlord covenants with the Tenant:

6.1      Quiet Enjoyment
         To  permit  the  Tenant  peaceably  and  quietly  to hold and enjoy the
         Premises  without  any  interruption  or  disturbance  from  or by  the
         Landlord or any person claiming under or in trust for the Landlord

6.2      To observe and perform its obligations contained in the Third Schedule

                                       21
<PAGE>

7.       INSURANCE

7.1      Warranty re convictions
         The Tenant  warrants  that prior to the  execution of this Lease it has
         disclosed to the Landlord in writing any conviction judgment or finding
         of any court or tribunal  relating to the Tenant (or any director other
         officer or major  shareholder  of the Tenant) of such a nature as to be
         likely to affect the decision of any insurer or underwriter to grant or
         continue insurance of any of the Insured Risks

7.2      Landlord to insure
         The Landlord  covenants  with the Tenant to insure the Premises  unless
         such insurance  shall be vitiated by any act of the Tenant or by anyone
         at the Premises expressly or by implication with the Tenant's authority
         and under the Tenant's control

7.3      Details of the Insurance
         Insurance shall be effected:

         7.3.1    In such  substantial  and reputable  insurance  office or with
                  such  other  underwriters  and  through  such  agency  as  the
                  Landlord may from time to time decide

         7.3.2    For the following sums:

                  7.3.2.1  such sum as the  Landlord  shall from time to time be
                           advised  as being  the full  cost of  rebuilding  and
                           reinstatement  including  architects'  surveyors' and
                           other   professional  fees,  fees  payable  upon  any
                           applications for planning permission or other permits
                           or  consents  that may be required in relation to the
                           rebuilding or  reinstatement of the Premises the cost
                           of debris removal demolition site clearance any works
                           that  may  be  required  by  statute  and  incidental
                           expenses and

                  7.3.2.2  the loss of Rent  payable  under this Lease from time
                           to time  (having  regard to any  review of rent which
                           may become due under this Lease) for 2 years

         7.3.3    Against  damage or  destruction  by the  Insured  Risks to the
                  extent that such  insurance  may  ordinarily  be arranged  for
                  properties  such as the Premises with an insurer of repute and
                  subject to such  excesses  exclusions  or  limitations  as the
                  insurer may require

                                       22
<PAGE>

7.4      Payment of Insurance Rent
         The Tenant shall pay the  Insurance  Rent on the date of this Lease for
         the period from and  including  the Rent  Commencement  Date to the day
         before the next policy renewal date and  subsequently  the Tenant shall
         pay the Insurance Rent on demand

7.5      Suspension of Rent

         7.5.1    If and whenever during the Term:

                  7.5.1.1  the  Premises  or any  part of them  are  damaged  or
                           destroyed  by any of the  Insured  Risks  except  one
                           against  which   insurance  may  not   ordinarily  be
                           arranged  with an insurer  of repute  for  properties
                           such as the Premises  unless the Landlord has in fact
                           insured against that risk so that the Premises or any
                           part of them are unfit for occupation or use and

                  7.5.1.2  save where payment of the insurance  money is refused
                           in whole or in part by reason  of any act or  default
                           of the Tenant or anyone at the Premises  expressly or
                           by implication  with the Tenants  authority and under
                           the Tenant's  control the  provisions of clause 7.5.2
                           shall have effect

         7.5.2    When the circumstances  contemplated in clause 7.5.1 arise the
                  Rent or a fair  proportion of the Rent according to the nature
                  and the  extent  of the  damage  sustained  shall  cease to be
                  payable  until the  Premises or the  affected  part shall have
                  been  rebuilt  or  reinstated  so  that  the  Premises  or the
                  affected part are made fit for  occupation or use or until the
                  expiration of 2 years from the destruction or damage whichever
                  period is the shorter (the amount of such  proportion  and the
                  period  during  which the Rent shall cease to be payable to be
                  determined  by the  Surveyor  acting as an  expert  and not as
                  arbitrator)

7.6      Reinstatement and Termination if prevented:

         7.6.1    If and whenever during the Term:

                  7.6.1.1  the  Premises  or any  part of them  are  damaged  or
                           destroyed  by any of the  Insured  Risks  except  one
                           against  which   insurance  may  not   ordinarily  be
                           arranged  with an insurer  of repute  for  properties
                           such as the Premises unless

                                       23
<PAGE>

                           the Landlord  has in fact  insured  against that risk
                           and

                  7.6.1.2  save  where the  payment  of the  insurance  money is
                           refused  in whole or in part by  reason of any act or
                           default  of the  Tenant  or  anyone  at the  Premises
                           expressly   or  by   implication   with  the  Tenants
                           authority  (and  under  the  Tenant's   control)  the
                           Landlord shall use its best  endeavours to obtain all
                           planning  permissions  or other  permits and consents
                           that may be required under the Planning Acts or other
                           statutes  (if any) to enable the  Landlord to rebuild
                           and reinstate ("Permissions")

         7.6.2    Subject  to the  provisions  of  clause  7.6.3  and  7.6.4 the
                  Landlord shall as soon as the  Permissions  have been obtained
                  or  immediately  where no  Permissions  are required apply all
                  monies  received  in  respect of such  insurance  to which the
                  Landlord is entitled  (except  such sums in respect of loss of
                  Rent) in rebuilding or  reinstating  the Premises so destroyed
                  or damaged

         7.6.3    For the  purposes of this clause the  expression  "Supervening
                  Events" means

                  7.6.3.1  the  Landlord  has  failed  despite  using  its  best
                           endeavours to obtain the Permissions

                  7.6.3.2  any of the Permissions have been granted subject to a
                           lawful condition with which in all the  circumstances
                           it would be  unreasonable  to expect the  Landlord to
                           comply

                  7.6.3.3  some defect or  deficiency in the site upon which the
                           rebuilding  or  reinstatement  is to take place would
                           mean that the same could only be undertaken at a cost
                           that would be unreasonable in all the circumstances

                  7.6.3.4  the  Landlord is unable to obtain  access to the site
                           for the purposes of rebuilding or reinstating

                  7.6.3.5  the rebuilding or reinstating is prevented by war act
                           of God Government action strike lock out or

                  7.6.3.6  any other  circumstances  beyond  the  control of the
                           Landlord

                                       24
<PAGE>

         7.6.4    The Landlord  shall not be liable to rebuild or reinstate  the
                  Premises if and for so long as such  rebuilding or reinstating
                  is prevented by Supervening Events

         7.6.5    If upon the  expiry of 2 years  commencing  on the date of the
                  damage or  destruction  the Premises  have not been rebuilt or
                  reinstated so as to be fit for the Tenant's occupation and use
                  either  party by notice  served at any time within 6 months of
                  the  expiry of such  period  invoke the  provisions  of clause
                  7.6.6

         7.6.6    Upon service of a notice in accordance with clause 7.6.5

                  7.6.6.1  the Term will absolutely cease but without  prejudice
                           to any rights or  remedies  that may have  accrued to
                           either  party  against the other  including  (without
                           prejudice to the  generality  of the above) any right
                           that the Tenant may have  against the  Landlord for a
                           breach of the Landlords  covenants set out in clauses
                           7.6.1 and 7.6.2

                  7.6.6.2  all  money  received  in  respect  of  the  insurance
                           effected  by the  Landlord  pursuant  to this  clause
                           shall belong to the Landlord

7.7      Tenant's Insurance Covenants The Tenant covenants with the Landlord

         7.7.1    To comply with all the requirements and recommendations of the
                  insurers

         7.7.2    Not to do or omit  anything  that  could  cause any  policy of
                  insurance  on or in relation to the Premises to become void or
                  voidable  wholly or in part nor (unless the Tenant  shall have
                  previously  notified  the  Landlord and have agreed to pay the
                  increased  premium)  anything by which additional or increased
                  insurance premiums may become payable

         7.7.3    To  keep  the  Premises   supplied  with  such  fire  fighting
                  equipment as the insurers and the fire  authority  may require
                  and to maintain such  equipment to their  satisfaction  and in
                  efficient  working  order and that at least  once in every six
                  months to cause any  sprinkler  system and other fire fighting
                  equipment to be inspected by a competent person

         7.7.4    Not  to  store  or  bring  on to  the  Premises  any  articles
                  substance or liquid of a specially combustible  inflammable or
                  explosive  nature  and to  comply  with the  requirements  and

                                       25
<PAGE>

                  recommendations  of the fire authority as to fire  precautions
                  relating to the Premises

         7.7.5    Not to obstruct the access to any fire  fighting  equipment or
                  means of escape  from the  Premises  nor to lock any fire door
                  while the Premises are occupied

         7.7.6    To give notice to the Landlord  immediately upon the happening
                  of any event which  might  affect any  insurance  policy on or
                  relating to the  Premises or upon the  happening  of any event
                  against which the Landlord may have insured under this Lease

         7.7.7    Immediately   to  inform  the   Landlord  in  writing  of  any
                  conviction  judgement  or  finding  of any  court or  tribunal
                  relating to the Tenant (or any  director  or other  officer or
                  major  shareholder  of the  Tenant)  of such a nature as to be
                  likely to affect the decision of any insurer or underwriter to
                  grant or to continue any such insurance

         7.7.8    If at any time the Tenant  shall be entitled to the benefit of
                  any  insurance  on the  Premises  (which  is not  effected  or
                  maintained  in pursuance of any  obligation  contained in this
                  Lease) to apply all money received by virtue of such insurance
                  in making  good the loss or damage in  respect  of which  such
                  money shall have been received

         7.7.9    If however  during the Term the  Premises  or any part of them
                  are damaged or destroyed by an Insured Risk and the  insurance
                  money under the policy of  insurance  effected by the Landlord
                  pursuant  to its  obligation  contained  in this  Lease  is by
                  reason of any act or  default  of the  Tenant or anyone at the
                  Premises   expressly  or  by  implication  with  the  Tenant's
                  authority and under the Tenant's  control  wholly or partially
                  irrecoverable immediately in every such case (at the option of
                  the Landlord)  either

                  7.7.9.1  to  rebuild  and  reinstate  at its own  expense  the
                           Premises  or the part  destroyed  or  damaged  to the
                           reasonable  satisfaction and under the supervision of
                           the  Surveyor the Tenant  being  allowed  towards the
                           expenses  of  so  doing  upon  such   rebuilding  and
                           reinstatement  being  completed  the  amount (if any)
                           actually  received in respect of such  destruction or
                           damage under any such insurance policy or

                  7.7.9.2  to pay to the  Landlord on demand with  Interest  the
                           amount of such insurance

                                       26
<PAGE>

                           money so  irrecoverable in which event the provisions
                           of clause 7.5 and 7.6 shall apply

7.8      Landlords Insurance Covenants
         The  Landlord  covenants  with the Tenant in  relation to the policy of
         insurance   effected  by  the  Landlord  pursuant  to  its  obligations
         contained in this Lease

         7.8.1    To  produce  to the  Tenant on demand a copy of the policy and
                  the last premium renewal receipt or reasonable evidence of the
                  terms of the  policy  and the fact that the last  premium  has
                  been paid

         7.8.2    To  procure  that  the  interest  of the  Tenant  is  noted or
                  endorsed on the policy

         7.8.3    To notify  the  Tenant of any  material  change  and the risks
                  covered by the policy from time to time

8.       PROVISOS
-----------------

         8.1      Re-entry

         If and whenever during the Term

         8.1.1    the  rents  (or any of them or any  part of them)  under  this
                  Lease are  outstanding  for 14 days after becoming due whether
                  formally demanded or not or

         8.1.2    there is a breach by the Tenant of any  covenant or other term
                  of this Lease or any document supplemental to this Lease or

         8.1.3    an individual Tenant becomes bankrupt or

         8.1.4    a company Tenant or the Guarantor

                  8.1.4.1  enters  into   liquidation   whether   compulsory  or
                           voluntary   (but  not  if  the   liquidation  is  for
                           amalgamation or  reconstruction of a solvent company)
                           or

                  8.1.4.2  has a receiver appointed or

         8.1.5    the Tenant enters into an  arrangement  for the benefit of its
                  creditors or

         8.1.6    the Tenant has any distress or execution levied on its goods
         the Landlord may re-enter the Premises (or any part of them in the name
         of the whole) at any time (and even if any  previous  right of re-entry
         has been  waived)  then the Term  will  absolutely  cease  but  without
         prejudice  to any  rights or  remedies  which may have  accrued  to the
         Landlord  against

                                       27
<PAGE>

         the Tenant or the  Guarantor  or to the Tenant  against the Landlord in
         respect  of any  breach  of  covenant  or  other  term  of  this  Lease
         (including the breach in respect of which the re-entry is made)

8.2      Exclusion of Use Warranty
         Nothing in this Lease or any consent granted by the Landlord under this
         Lease shall imply or warrant  that the  Premises  may  lawfully be used
         under the Planning  Acts for the purposes  authorised in this Lease (or
         any purpose subsequently authorised)

8.3      Entire Understanding
         This Lease embodies the entire understanding of the parties relating to
         the Premises and to all matters dealt with by any of the  provisions of
         this Lease

8.4      Representations
         The Tenant  acknowledges  that this Lease has not been  entered into in
         reliance wholly or partly on any statement or representation made by or
         on behalf of the Landlord  except any such statement or  representation
         that is  expressly  set out in this  Lease  or in  written  replies  to
         enquiries given by the Landlord's Solicitors

8.5      Licences etc under hand
         Whilst  the  Landlord  is a limited  company or other  corporation  all
         licences  consents  approvals  and notices  required to be given by the
         Landlord  shall be  sufficiently  given if  given  under  the hand of a
         director the secretary or other duly authorised officer of the Landlord
         or the Surveyor on behalf of the Landlord

8.6      Tenant's Property
         If after the Tenant has vacated the  Premises on the expiry of the Term
         any property of the Tenant remains in or on the Premises and the Tenant
         fails to remove it within 7 days after  being  requested  in writing by
         Landlord to do so or if after using its best endeavours the Landlord is
         unable  to make such a request  to the  Tenant  within 14 days from the
         first  attempt so made by the  Landlord

         8.6.1    the Landlord may as the agent of the Tenant sell such property
                  and  the  Tenant  will  indemnify  the  Landlord  against  any
                  liability  incurred by it to any third  party  whose  property
                  shall have been sold by the  Landlord in the  mistaken  belief
                  held in  good  faith

                                       28
<PAGE>

                  (which  shall be presumed  unless the contrary be proved) that
                  such property belonged to the Tenant

         8.6.2    if the Landlord  having made  reasonable  efforts is unable to
                  locate the Tenant the  Landlord  shall be  entitled  to retain
                  such proceeds of sale absolutely unless the Tenant shall claim
                  them within 6 months of the date upon which the Tenant vacated
                  the Premises and

         8.6.3    the Tenant shall  indemnify  the  Landlord  against any damage
                  occasioned to the Premises and any actions claims  proceedings
                  costs expenses and demands made against the Landlord caused by
                  or  related  to  the  presence  of the  property  in or on the
                  Premises

8.7      Compensation on Vacating
         Any  statutory  right  of the  Tenant  to claim  compensation  from the
         Landlord on vacating the Premises  shall be excluded to the extent that
         the law allows

8.8      Service of Notices
         The  provisions  of the Law of Property Act 1925 Section 196 as amended
         by the Recorded Delivery Service Act 1962 shall apply to the giving and
         service of all notices and documents  under or in connection  with this
         Lease  except  that  Section  196  shall be  deemed  to be  amended  as
         follows:-

         8.8.1    the final  words of  Section  196(4)  "and  that  service...be
                  delivered"  shall be deleted  and there  shall be  substituted
                  "and  that  service  shall be  deemed  to be made on the third
                  Working  Day  after  the  registered  letter  has been  posted
                  "Working Day" meaning any day from Monday to Friday  inclusive
                  other than Christmas Day Good Friday and any statutory bank or
                  public holiday"

         8.8.2    any notice or document shall also be sufficiently  served on a
                  party if served on solicitors who have acted for that party in
                  relation to this Lease or the  Premises at anytime  within the
                  year preceding the service of the notice or document

         8.8.3    any notice or document  shall also be  sufficiently  served if
                  sent by telex telephonic  facsimile  transmission or any other
                  means of electronic transmission to the party to be

                                       29
<PAGE>

                  served (or its solicitors where clause 8.8.2 applies) and that
                  service shall be deemed to be made on the day of  transmission
                  if transmitted before 4 p.m. on a Working Day but otherwise on
                  the next following Working Day (as defined above)

         And in the clause "Party" includes the Guarantor

8.9      Power to Determine

         8.9.1    The  Tenant  may  terminate  this  Lease on the  First  day of
                  January  2009 ("the Break Date") if the Tenant shall up to the
                  time of such  termination  have  paid Rent and  performed  and
                  observed  the  covenants  contained  in this  Lease by  giving
                  notice in writing  ("the Break  Notice") to the  Landlord  not
                  more than 18 months nor less than 12 months and one day before
                  the Break Date

         8.9.2    The Tenant may withdraw  the Break Notice by giving  notice in
                  writing  to that  effect  to the  Landlord  not less  than six
                  months  before the Break Date

         8.9.3    If a Break Notice is given in accordance with clause 8.9.1 and
                  not withdrawn in accordance  with clause 8.9.2 this Lease will
                  terminate  on the  Break  Date but  without  prejudice  to the
                  respective  right of either part in respect of any  antecedent
                  claim or breach of covenant

8.10     Jurisdiction
         This Lease shall be  construed  and governed by the Laws of England and
         Wales to the exclusive  jurisdiction of whose Courts the parties hereto
         unconditionally submit

8.11     Rights of Third Parties
         This Lease does not  create any right  enforceable  by any person not a
         party to it who is not the  Landlord  for the time  being or the Tenant
         for the time being or (where relevant) the Guarantor for the time being

9.       The Guarantor's Covenants
         The Guarantor covenants with the person named in clause 1.1 and without
         the need for any express assignment with all its successors in title in
         the terms set out in the Fifth Schedule

         IN WITNESS  WHEREOF the parties  hereto have  executed  this Lease as a
         deed the day and year first

                                       30
<PAGE>

before written

                                 FIRST SCHEDULE
                                 --------------

                                     Part I

                                (Rights Reserved)

1.    The free and  uninterrupted  passage of water and soil  through  the pipes
      drains and watercourse and of electricity,  gas and other services through
      the  Pipes  which are now or may at any time  during  the Term be in on or
      under or passing  through the Premises for the benefit of the remainder of
      the Estate  and any  adjoining  or  neighbouring  property  and every part
      thereof  with the right to  construct  and  maintain  new services for the
      benefit of the remainder of the Estate and any  adjoining or  neighbouring
      property and every part thereof the right to repair and maintain and renew
      such  existing  and new  services and the right at any time but (except in
      emergency)  after giving  reasonable  notice to enter upon the Premises in
      the exercise of such rights

2.    Full  right  and  liberty  at any time  hereafter  or from time to time to
      execute  works  services and  erections  and  buildings  upon or to alter,
      demolish or rebuild any of the erections  services or buildings erected on
      the remainder of the Estate and any adjoining or neighbouring  property or
      any part thereof  providing the Landlord is acting  reasonably  and to use
      the  remainder of the Estate and any  adjoining  neighbouring  property or
      buildings  erected or to be erected thereon in such manner as the Landlord
      acting reasonably shall think fit notwithstanding that the access of light
      or air to the  Premises  may be  interfered  with  or that  access  to the
      Premises may be unavoidably  obstructed  provided that the Landlord or the
      person  exercising  such  rights  shall  make good all  damage  occasioned
      thereby and shall abate an appropriate  amount of rent for any part of the
      Premises inaccessible by reason of such works

3.    The right (upon reasonable prior notice except in emergency) to enter upon
      the  Premises  so far as may be  necessary  for the  purpose of  executing
      repairs or  alteration  to and  maintaining  the Retained  Parts or to the
      remainder of the Estate and any adjoining or  neighbouring  property owned
      by the Landlord or any part thereof  making good any damage caused as soon
      as reasonably practicable

4.    The right of support and protection from the Premises for the remainder of
      the Estate  and any

                                       31
<PAGE>

      adjoining or neighbouring property and every part thereof

5.    The  right  at any  time  during  the Term at  reasonable  times  and upon
      reasonable  notice  except in cases of  emergency to enter (or in cases of
      emergency to break and enter) the Premises

5.1   to exercise any of the rights  granted to the  Landlord  elsewhere in this
      Lease

5.2   to inspect the condition and state of repair of the Premises

5.3   to take  schedules or inventories of fixtures and fittings and other items
      to be yielded up on the expiry of the Term

6.    The  right  with the  Surveyor  at any  time or  convenient  hours  and on
      reasonable  prior notice to enter and inspect and measure the Premises for
      all purposes  connected  with any pending or intended step or action under
      the 1954 Act or the implementation of the provisions for rent review

7.    The  right to vary  alter or  change  the  route  leading  to and from the
      Premises  or close or build  upon the  Access  Roads  forming  part of the
      Estate  provided  that the  Landlord  shall  provide or maintain  suitable
      alternate access to and from the Premises

8.    The  right in case of  emergency  for  itself or others  the  occupier  or
      Tenants of the remainder of the Estate and their  visitors or licensees to
      gain egress  through such parts of the Premises (if any) as are classified
      and maintained as fire exits or emergency escape routes

                                     Part II

                                (Rights Granted)

1.    The free and  uninterrupted  passage of water and soil  through  the pipes
      drains and watercourse and of electricity,  gas and other services through
      the Pipes  which are now or may at any time during the Term be in or under
      or passing  through or over the other parts of the Estate or any adjoining
      or neighbouring property of the Landlord

2.    All necessary  rights of subjacent and lateral  support and protection for
      the Premises

3.    A right (upon reasonable prior notice except in emergencies) to enter onto
      the  remainder of the Estate so far as may be necessary for the purpose of
      executing  repairs to and  maintaining  the  Premises and a right to enter
      into such part of the  Building in which  meters are housed in relation to
      mains service supplies  provided that the Tenant or the person  exercising
      such rights shall make

                                       32
<PAGE>

      good all damage occasioned thereby to the remainder of the Estate

4.    A right of way without or without  vehicles  over the Access Roads for the
      Tenant or any persons  expressly  or  impliedly  authorised  by him at all
      times and for all purposes  connected with such Tenant's use and enjoyment
      of the Premises and so far only as is necessary  and to load and unload in
      the  Access  Roads  without   causing   congestion  or  any  permanent  or
      unnecessary obstruction

5.    The right at all usual times of business to park up to 3 motor cars in the
      parking  spaces  coloured  red on the Plan or in other such  places as the
      Landlord acting  reasonably may from time to time designate  together with
      the  right to  casual  parking  in such  other  parking  spaces  which the
      Landlord  may  provide  and  designate  from time to time and which may be
      available

6.    All necessary  rights in the event of fire or other  similar  emergency to
      use the fire and emergency  exits with the necessary  egress to a place of
      safety

                               THE SECOND SCHEDULE
                               -------------------

                                   Rent Review

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

      For all  purposes of this  schedule  the terms  defined in this  paragraph
      shall have the meanings specified

1.1   "The Base Figure" means being the amount of the latest index figure of the
      index last published before the date of this Lease

1.2   "the Index" means the Index of Retail  Prices  published by H M Stationary
      Office or any official publication substituted for it

1.3   "The New Rent"  means that rent to apply  after the  relevant  Review Date
      until the next Review Date

1.4   "The  Revised  Rent" means the rent  determined  in  accordance  with this
      schedule

1.5   "The Review Date  Figure"  means the amount of the latest  index figure of
      the Index last published before the relevant Review Date

2.    THE NEW RENT
------------------

                                       33
<PAGE>

2.1   The New Rent shall be whichever is the higher of:

      2.1.1  An increase of 3% of the Rent then payable and

      2.1.2  The Revised Rent

2.2   If the relevant Review Date is not a quarter day the Tenants shall on that
      Review Date pay to the Landlord  the amount by which one quarters  rent at
      the rate payable on the immediately preceding quarter day in less then one
      Quarters Rent at the rate of the New Rent apportioned on a daily basis for
      then part of the Quarter during which the New Rent is payable

3.    REVISED RENT
------------------

      The Revised Rent shall be the amount to be  determined  at the Review Date
      by multiplying the Initial Rent by the Review Date Figure and dividing the
      result by the Base Figure

4.    PROVISOS
--------------

4.1   In the event of any change  after the date of this Lease in the  reference
      base used to complete  the Index the figure taken to be shown in the Index
      after the change  shall be the figure  which  would have been shown in the
      Index if the  reference  base  current  at the date of this Lease had been
      retained

4.2   In the event of it becoming  impossible  by reason of any change after the
      date of this Lease in the  methods  used to  compile  the Index or for any
      other reason  whatsoever to calculate the Revised Rent by reference to the
      Index or if any dispute or question  whatsoever arises between the parties
      to this Lease  with  respect  to the  amount of the  Revised  Rent or with
      respect  to the  construction  or effect of this  clause  the  dispute  or
      question  shall be  determined  by a valuer  acting as an expert who shall
      have full power to determine on such dates as he shall deem  apposite what
      would have been the Review  Date  Figure  had the Index  continued  on the
      basis and giving the information assumed to be available for the operation
      of this Schedule

5.    NOTIFICATION OF THE REVISED RENT
--------------------------------------

5.1   The Landlord  shall obtain copies of the Index and shall supply the Tenant
      with a copy of the latest  publication of the Index before the Review Date
      together with a calculation of the amount of the Revised Rent

5.2   Within one month of receipt  of the  Tenant  shall in writing  acknowledge
      receipt of the copy and

                                       34
<PAGE>

      statement and state whether or not he agrees with the calculation

6.    DEFAULT PROVISION
-----------------------

6.1   If the Tenant fails to acknowledge the Landlords calculation of the amount
      of the Revised  Rent within one month or the  procedure  laid down in this
      Schedule is not complied  with the Revised Rent shall be the amount stated
      in the Landlords calculation

6.2   If it is  impossible  to  determine  the Revised Rent in  accordance  with
      paragraph 2 of this  Schedule then the Revised Rent shall be determined in
      accordance with paragraph 4.2 of this Schedule

7.    PAYMENT OF THE NEW RENT
-----------------------------

7.1   The Tenant shall  continue to pay the previous  Rent payable in accordance
      with the terms of this Lease until ascertainment of the Revised Rent

7.2   Upon  ascertainment of the Revised Rent the New Rent shall be payable from
      the  Review  Date and the  Tenant  shall  pay the New Rent  until the next
      relevant Review Date

7.3   Upon  ascertainment  of the Revised Rent the Tenant shall forthwith pay to
      the Landlord  the amount of any  difference  between the rent  immediately
      payable  before that  Review Date and the New Rent for the period  between
      the Review Date and the ascertainment of the New Rent with interest at the
      Interest Rate  calculated on a daily basis from the date of  ascertainment
      of the New Rent to the date of payment

8.    MEMORANDUM OF NEW RENT
----------------------------

      When the New Rent have been  ascertained in accordance  with this Schedule
      memoranda  of the  amounts  shall  be  endorsed  on  this  Lease  and  the
      counterpart  of it and shall be signed by or on behalf of the Landlord and
      the Tenant

                               THE THIRD SCHEDULE
                               ------------------

                            The Industrial Covenants

1.    User.

1.1   To use the Premises for the Permitted User only

1.2   Not to leave the Premises  continuously  unoccupied  for more than 1 month
      without

                                       35
<PAGE>

      1.2.1  notifying the Landlord and

      1.2.2  providing such  caretaking or other  security  arrangements  as the
             Landlord shall reasonably require and the insurers shall require in
             order to  protect  the  Premises  from  vandalism  theft  damage or
             unlawful occupation

2.    Smoke Abatements

2.1   To ensure that every  furnace  boiler or heater at the  Premises  (whether
      using  solid  liquid  or  gaseous  fuel)  is  constructed  and  used so as
      substantially to consume or burn the smoke arising from it

2.2   Not to cause or permit  any grit or noxious or  offensive  effluvia  to be
      emitted from any engine furnace chimney or other apparatus on the Premises
      without using the best possible means for preventing or counteracting such
      emission

2.3   To  comply  with the  provisions  of the  Clean Air Acts 1956 and 1968 the
      Control of Pollution Act 1974 and the  Environmental  Protection  Act 1996
      and with the  requirements  of any  notice of the local  authority  served
      under them

3.    Pollution
      Not to permit to be  discharged  into any Pipes serving the Premises or to
      be spilled or deposited on the Premises or any  neighbouring  or adjoining
      land

3.1   Any oil or grease or any  deleterious  objectionable  dangerous  poisonous
      noxious  or  explosive  matter  or  substance  and to take all  reasonable
      measures to ensure that any effluent discharged into the Pipes will not be
      corrosive  or  otherwise  harmful  to the  Pipes or cause  obstruction  or
      deposit in them or

3.2   Any fluid of a poisonous or noxious nature or other kind likely to or that
      does in fact destroy  sicken or injure the fish or  contaminate or pollute
      the water of any stream or river

3.3   Any  controlled or special waste or any other  substance  that may produce
      concentrations  or  accumulations of noxious gases or noxious liquids that
      may cause pollution of the environment or harm to human health

4.    Roof and Floor Weighting

4.1   Not to bring or permit to remain  upon the  Premises  any safes  machinery
      goods or other  articles

                                       36
<PAGE>

      which shall or may strain or damage the Premises or any part of it

4.2   Not  without  the  consent of the  Landlord to suspend any weight from the
      portal  frames  stanchions or roof purlins of the Premises or use the same
      for the storage of goods or place any weight on them

4.3   On  the  application  by the  Tenant  for  the  Landlord's  consent  under
      paragraph  4.2 the  Landlord  shall be  entitled to consult and obtain the
      advice of an  engineer  or other  person in  relation to the roof or floor
      loading  proposed by the Tenant and the Tenant shall repay to the Landlord
      on demand the fee of such engineer or other person

5.    Machinery

5.1   To keep all plant  apparatus  and  machinery  (including  any  boilers and
      furnaces) upon the Premises properly  maintained and in good working order
      and for that  purpose  to employ  reputable  contractors  for the  regular
      periodic inspection and maintenance of them

5.2   To renew  all  working  and  other  parts as and  when  necessary  or when
      recommended by such contractors

5.3   To ensure by directions to the Tenants staff and otherwise that such plant
      apparatus and machinery are properly operated and

5.4   To avoid damage to the Premises by vibration or otherwise

6.    Signs
      At all times to display and maintain a suitable  sign showing the Tenant's
      trading name and  business of the size and kind  specified by the Landlord
      at points designated within the Estate by the Landlord

7.    To comply with all regulations  made by the Landlord from time to time for
      the management of the Estate

                              THE FOURTH SCHEDULE
                              -------------------

                                 Service Charge

                                     PART A

                                   Definitions

1.    "Services" means the services facilities and amenities specified in Part C
      of this Schedule

                                       37
<PAGE>

2. "Annual Expenditure" means

      2.1   all costs expenses and outgoings  whatever  properly incurred by the
            Landlord  during a Financial  Year in or incidental to providing all
            or any of the Services and

      2.2   all sums  reasonably and properly  incurred by the Landlord during a
            Financial  Year in relation to the  matters  specified  in Part D of
            this Schedule ("the  Additional  Items")
      and any VAT payable on such items (save where such VAT is  recoverable  by
      the Landlord) but

      2.3   excluding any  expenditure  in respect of any part of the Estate for
            which the Tenant or any other Tenant shall be wholly responsible and
            excluding any  expenditure  that the Landlord shall recover or which
            shall  be met  under  any  policy  of  insurance  maintained  by the
            Landlord pursuant to its obligations in this Lease

3.    "Computing Date" means 31st August in every year of the Term or such other
      date as the Landlord may from time to time nominate and "Computing  Dates"
      shall be construed accordingly

4.    "Financial Years" means the period

      4.1   from  the  commencement  of the  Term  to and  including  the  first
            Computing Date and subsequently

      4.2   between 2 consecutive Computing Dates (excluding the first Computing
            Date from but including the second Computing Date in the period)

5.    "Retained  Parts" mean all parts of the Estate not let or  constructed  or
      adapted for letting  including (but without prejudice to the generality of
      the above):

      5.1   any rooms and storage premises used in connection with the provision
            of services for the Estate

      5.2   all Pipes equipment and apparatus used in the Building  (except such
            as are within and solely  serve an  individual  unit which is let or
            constructed or adapted for letting)

      5.3   Such  parts of the  structure  walls  foundations  and  roofs of the
            Building that are not included in the Premises and that would not be
            included in the Premises demised by leases of all the other units in
            the Building if let on the same terms as this Lease

                                       38
<PAGE>

                                     PART B
                     Performance of the Services and Payment
                              of the Service Charge

6.    Performance of the Services

      Subject  to the  Tenant  paying to the  Landlord  the  Service  Charge the
      Landlord shall perform the Services  throughout the Term provided that the
      Landlord shall not be liable to the Tenant in respect of :

      6.1   any  failure or  interruption  in any of the  Services  by reason of
            repair replacement  maintenance of any installations or apparatus or
            their  damage or  destruction  or by reason of  mechanical  or other
            defect or breakdown or frost other inclement  conditions or shortage
            of fuel  materials  water or labour or any other  cause  beyond  the
            Landlord's  control  save as to the extent that any such  failure or
            interruption  could have been prevented or shortened by the exercise
            of proper care  attention and diligence and skill by the Landlord or
            those  undertaking  the  Services  on  behalf  of the  Landlord  and
            provided that the Landlord uses and continues to use its  reasonable
            endeavours  to  restore  the  Services  in  question  as  quickly as
            possible

      6.2   any  act  omission  or  negligence  of any  person  undertaking  the
            Services or any of them on behalf of the Landlord provided that this
            paragraph  shall not be  construed as  relieving  the Landlord  from
            liability for breach by the Landlord of any covenants on the part of
            the Landlord contained in this Lease

7.    Payment of the Service Charge

7.1   For each Financial Year, the Tenant must pay to the Landlord on account of
      the  Service  Charge  the sum of  (pound)750.00  or such  other sum as the
      Landlord's  Surveyor  certifies to be fair and reasonable having regard to
      the  likely  amount  of the  Service  Charge.  That  sum  shall be paid in
      advance,  without  deduction or set off by equal  instalments on the usual
      quarter days, the first instalment or  proportionate  part thereof for the
      period from the rent  commencement  date to the next quarter being paid on
      the execution  thereof.  During any Financial Year the Surveyor may

                                       39
<PAGE>

      revise  the  contribution  on  account  of the  service  charge  for  that
      Financial Year so as to take into account any actual or expected  increase
      in expenditure, and as soon as reasonably practicable after such revisions
      the Surveyor must certify the amount of the revised contribution

7.2   The Landlord shall as soon as convenient after each Computing Date prepare
      and serve on the Tenant an account showing the Annual  Expenditure for the
      Financial Year ending on that Computing Date and containing a fair summary
      of the expenditure referred to in it and upon such account being certified
      by the Surveyor it shall be  conclusive  evidence for the purposes of this
      lease of all matters of fact referred to in the account except in the case
      of manifest error

7.3   The Tenant  shall be  entitled  at any time to inspect  the  vouchers  and
      receipts relating to the Annual Expenditure

7.4   With the account prepared and served under the provisions of paragraph 7.2
      of this  Schedule the Landlord  will furnish the Tenant with an account of
      the service charge payable by him for that  Financial  Year,  credit being
      given for payments  made on account.  Within 14 days of the  furnishing of
      such an account,  the Tenant must pay the service charge or the balance of
      any balance of it payable, to the Landlord. The Landlord must allow to the
      Tenant any amount  overpaid by him against  future  payment of the Service
      Charge,  whether  on  account  or not.  At the end of the  Financial  Year
      current at the end of the Term the  Landlord  must repay to the Tenant any
      outstanding overpayment of the service charge

7.5   The Tenant shall pay the Service Charge each Financial Year within 14 days
      after service upon it of the account certified by the Surveyor as provided
      by paragraph 7.1 of this Schedule

8.    Variations
      The Landlord may withhold add to extend vary or make any alteration in the
      rendering of the Services or any of them from time to time  provided  that
      the same complies with the  principles  of good estate  management  and is
      reasonable in all the circumstances

                                     PART C

                                  The Services

9.    Maintaining etc Retained Parts
      Maintaining   repairing   renewing  where  beyond   economic   repair  and
      reinstating  and where

                                       40
<PAGE>

      appropriate  treating  washing down painting and  decorating  the Retained
      Parts

10.   Maintaining etc apparatus plant machinery etc
      Inspecting servicing  maintaining repairing amending overhauling replacing
      where beyond economic repair and insuring (save in so far as insured under
      other  provisions  of  this  lease)  all  apparatus  plant  machinery  and
      equipment  within the Retained Parts from time to time including  (without
      prejudice  to the  generality  of the  above)  all (if any) lifts and lift
      shafts stand-by generators and boilers and closed-circuit television

11.   Maintaining etc Pipes
      Maintaining  repairing  cleansing  emptying  draining and  renewing  where
      necessary  for the  purpose of repair only all Pipes  within the  Retained
      Parts

12.   Maintaining etc Fire Alarms etc
      Maintaining  and renewing where  necessary for the purposes of repair only
      any fire  alarms and  ancillary  apparatus  and fire  prevention  and fire
      fighting equipment and apparatus in the Retained Parts

13.   Cleaning etc Retained Parts
      Cleaning treating heating and lighting the Retained Parts to such standard
      as the Landlord may from time to time consider adequate

14.   Fixtures Fittings, etc
      Supplying  providing  purchasing hiring maintaining  renewing where beyond
      economic repair  replacing where necessary for the purposes of repair only
      repairing servicing  overhauling and keeping in good and serviceable order
      and condition all fixtures and fittings bins receptacles  tools appliances
      materials equipment and other things which the Landlord may deem desirable
      or necessary for the maintenance  appearance  upkeep or cleanliness of the
      Estate or any part of the Estate

15.   Other Services
      Any  other  services  relating  to the  Estate  or any part of the  Estate
      provided by the  Landlord  from time to time and not  expressly  mentioned
      which shall at any time during the Term be in keeping with the  principles
      of good estate management

                                       41
<PAGE>

                                     PART D

                              The Additional Items

16.      Fees

16.1     The reasonable and proper fees and  disbursements  (and any VAT payable
         on them save where recoverable by the Landlord) of :

16.1.1   the Surveyor and other  individual firm or company employed or retained
         by  the  Landlord  for  (or  in  connection  with)  such  surveying  or
         accounting functions or the management of the Estate

         16.1.2   the managing  agents  (whether or not the  Surveyor) for or in
                  connection with:

                  16.1.2.1 the management of the Estate

                  16.1.2.2 the collection of the rents and all other sums due to
                           the Landlord from the tenants of the Estate

                  16.1.2.3 the  performance of the Services and any other duties
                           in and about the Estate or any part of it relating to
                           (without  prejudice to the  generality  of the above)
                           the  general   management   administration   security
                           maintenance protection and cleanliness of the Estate

         16.1.3   any  individual  firm or  company  valuing  the Estate for the
                  purposes  of  assessing  the  full  cost  of  rebuilding   and
                  reinstatement

         16.1.4   any  individual  firm  or  company  providing   caretaking  or
                  security arrangements and services to the Estate as a whole

         16.1.5   any other  individual firm or company  employed or retained by
                  the  Landlord  to perform (or in  connection  with) any of the
                  Services or any of the functions or duties referred to in this
                  paragraph

         PROVIDED  that such fees and  expenses  shall not relate to  collecting
         arrears of rent  negotiating  new  lettings  or  negotiations  or other
         matters relating to rent reviews or dilapidations

16.2     The  reasonable and proper fees of the Landlord for any of the Services
         or the other  functions and duties  referred to in paragraph 16.1 above
         that shall be undertaken by the Landlord and not by a third party

                                       42
<PAGE>

17.      Contracts for Services
         The cost of entering  into any contracts for the carrying out of all or
         any of the  Services and other  functions  and duties that the Landlord
         may in its absolute discretion deem desirable or necessary

18.      Outgoings
         All taxes  assessments  duties charges  impositions and outgoings which
         are now or during  the Term shall be charged  assessed  or imposed  on:
         18.1  the  whole  of the  Estate  where  there  is no  separate  charge
         assessment or imposition on or in respect of an individual unit

18.2     the whole of the Retained Parts or any part of them

19.      Electricity Gas etc
         The  cost of  supply  of  electricity  gas oil or  other  fuel  for the
         provision of the Services and for all purposes in  connection  with the
         Retained Parts

20.      Road Charges etc
         The expense of repairing  maintaining  and  rebuilding and cleaning the
         access  roads  and any ways  roads  pavements  or  structures  Pipes or
         anything  which may  belong to or be used for the Estate or any part of
         it  exclusively  or in common  with  other  neighbouring  or  adjoining
         premises

21.      Regulations
         The costs  charges  and  expenses of  preparing  and  supplying  to the
         tenants copies of any regulation  made by the Landlord to the Estate or
         the use of it

22.      Statutory etc Requirements
         The cost of taking  all steps  deemed  desirable  or  expedient  by the
         Landlord for complying with making representations against or otherwise
         contesting  the incidence of the  provisions  of any statute  byelaw or
         notice concerning town planning public health highways streets drainage
         or other matters  relating to or alleged to relate to the Estate or any
         part of it for which any tenant is not directly and exclusively liable

23.      Nuisance
         The cost of the Landlord of abating a nuisance in respect of the Estate
         or any  part of it in so far as the  same is not the  liability  of any
         individual tenant

                                       43
<PAGE>

24.      Interest

         Any  reasonable  and  proper  interest  and  fees in  respect  of money
         borrowed to finance the  provisions  of the Services of the  Additional
         Items

25.      Anticipated Expenditure

         Such Provision (if any) for the  anticipated  expenditure in respect of
         any of the Services or the  Additional  Items as the Landlord  shall in
         its reasonable discretion consider appropriate.

                               THE FIFTH SCHEDULE
                               ------------------

                              Guarantors Covenants

1.       That as between the  Guarantor  and the Landlord  the  liability of the
         Guarantor will be as principal debtor and covenantor

2.       That the Tenant will at all times during the Term (and as well after as
         before any  disclaimer of this Lease) duly and punctually pay the rents
         as herein  provided  and will  observe  and  perform  all the  tenant's
         covenants and the conditions contained in this Lease

3.       That if at any time  during the Term the Tenant  defaults in paying any
         of the rents or in observing or  performing  any of the  covenants  and
         conditions  contained in this Lease the  Guarantor  will pay such rents
         and  observe and perform the  covenants  and  conditions  in respect of
         which the Tenant is in default and pay and make good to the Landlord on
         demand all  losses  damages  and costs and  expenses  sustained  by the
         Landlord through the default of the Tenant notwithstanding:-

         3.1      any time or  indulgence  granted by the Landlord to the Tenant
                  or any neglect or forbearance of the Landlord in enforcing the
                  payment  of  rents or the  observance  or  performance  of the
                  Tenant's covenants or other terms of this Lease or any refusal
                  by the  Landlord to accept  rents  tendered by or on behalf of
                  the Tenant at a time when the  Landlord was entitled (or would
                  after the service of a notice under  Section 146 of the Law of
                  Property Act 1925 have been entitled) to re-enter the Premises

         3.2      that the terms of this Lease may have been varied by agreement
                  between the parties

         3.3      that the Tenant may have  surrendered  part of the Premises in
                  which event the  liability of

                                       44
<PAGE>

                  the Guarantor hereunder shall continue in respect of the parts
                  of the Premises not so surrendered  after making any necessary
                  apportionments under the Law of Property Act 1925 s.140

         3.4      that the Tenant may have ceased to exist

         3.5      any  other act or thing  whereby  but for this  provision  the
                  Guarantor would have been released

4.       If at any time during the Term the Tenant (being an individual) becomes
         bankrupt or (being a company) goes into  liquidation and the trustee in
         bankruptcy  or  liquidator  disclaims  this  Lease or if this  Lease is
         forfeited  then this  Schedule  will  remain in full  force and  effect
         notwithstanding such event and the Guarantor will if the Landlord shall
         by notice in writing within 60 days after such disclaimer or forfeiture
         so require  take from the  Landlord a lease of the  Premises for a term
         commensurate  with the residue of the Contractual Term which would have
         remained had there been a  disclaimer  or  forfeiture  at the same Rent
         then being payable and subject to the same  covenants and conditions as
         are  reserved  by and  contained  in this Lease to take effect from the
         date  of the  said  disclaimer  or  forfeiture  and in  such  case  the
         Guarantor shall pay the costs of such new Lease and execute and deliver
         to the Landlord a counterpart thereof

5.       The  parties  agree that this  guarantee  shall only  subsist  for such
         period  and  extend  to  such   liabilities   restrictions   and  other
         requirements as may be permitted by the Landlord and Tenant (Covenants)
         Act 1995

SIGNED AS A DEED AND DELIVERED                )
by MICHAEL ROBERT KENDALL                     )
in the presence of:-                          )

                                       45
<PAGE>

SIGNED AS A DEED AND DELIVERED                )
by JUNE JARVIS in the presence of:-           )

SIGNED AS A DEED AND DELIVERED by             )
by BARNETT WADDINGHAM TRUSTEES                )
LIMITED acting by a Director and its Secretary)

      Director:

      Secretary:

SIGNED AS A DEED AND DELIVERED by             )
LAKELAND INDUSTRIES EUROPE LIMITED            )
acting by a Director and its Secretary        )

      Director:

      Secretary:

                                       46

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