Document:

EXHIBIT 10

EXHIBIT 10.7

FORM OF FRANCHISE AGREEMENT BETWEEN A SUBSIDIARY

OF THE REGISTRANT AND DISTRIBUTORS OF TUPPERWARE

IN THE UNITED STATES

 

TUPPERWARE U.S., INC.

FRANCHISE AGREEMENT

 

 

	
                                                        

	
FRANCHISEE

 

	
                                                        

	
DATE OF AGREEMENT

	
NOTICE:
	
THIS AGREEMENT PROVIDES FOR BINDING ARBITRATION OF CERTAIN DISPUTES.

_____________________________________________________________________________________________

TABLE OF CONTENTS

	 	
PAGE

	
1.
	
INTRODUCTION AND DEFINITIONS
	
1

	 	 	 
	
2.
	
GRANT, ACCEPTANCE AND INITIAL TERM
	
3

	 	 	 
	
3.
	
DISTRIBUTION RIGHTS AND PERFORMACE CRITERIA
	
4

	 	 	 
	
4.
	
GUIDANCE AND ASSISTANCE
	
4

	 	
A.
	
GUIDANCE AND ASSISTANCE
	
4

	 	
B.
	
OPERATING MANUALS
	
5

	 	 	 
	
5.
	
MARKS
	
5

	 	
A.
	
OWNERSHIP AND GOODWILL OF MARKS
	
5

	 	
B.
	
LIMITATIONS ON YOUR USE OF MARKS
	
5

	 	
C.
	
DISCONTINUANCE OF USE OF MARKS
	
6

	 	
D.
	
NOTIFICATION OF INFRINGEMENTS AND CLAIMS
	
6

	 	
E.
	
INDEMNIFICATION FOR USE OF MARKS
	
6

	 	 	 	 
	
6.
	
RELATIONSHIP OF THE PARTIES/INDEMNIFICATION
	
7

	 	
A.
	
INDEPENDENT CONTRACTORS
	
7

	 	
B.
	
NO LIABILITY FOR ACTS OF OTHER PARTY
	
7

	 	
C.
	
TAXES
	
7

	 	
D.
	
INDEMNIFICATION
	
7

	 	 	 	 
	
7.
	
FEES AND PAYMENTS
	
8

	 	
A.
	
INITIAL FEES
	
8

	 	
B.
	
TERMS OF SALE TO FRANCHISEE
	
8

	 	
C.
	
INTEREST ON LATE PAYMENTS
	
8

	 	
D.
	
APPLICATION OF PAYMENTS
	
8

	 	 	 	 
	
8.
	
CONFIDENTIAL INFORMATION
	
9

	 	 	 	 
	
9.
	
EXCLUSIVE RELATIONSHIP
	
9

	 	 	 	 
	
10.
	
IMAGE AND OPERATING PROCEDURES
	
10

	 	
A.
	
PREMISES
	
10

	 	
B.
	
TUPPERWARE CONSULTANTS
	
10

	 	
C.
	
STANDARDS AND PRCEDURES
	
11

	 	
D.
	
MAINENANCE AND REFURBISHINGOF PREMISES AND VEHICLES
	

11

	 	
E.
	
COMPLIANCE WITH LAWS AND GOOD BUSINESS PRACTICES
	
11

	 	
F.
	
FORMS AND INVOICES
	
12

	 	
G.
	
CUSTOMER RELATIONS/WARRANTIES
	
12

	 	
H.
	
INSURANCE
	
12

	 	
I.
	
COMPUTER
	
13

	 	 	 	 
	
11.
	
REPORTS AND FINANCIAL STATEMENTS
	
13

	 	 	 	 
	
12.
	
INSPECTIONS AND AUDITS
	
13

	 	
A.
	
COMPANY'S RIGHT TO INSPECT
	
13

	 	
B.
	
COMPANY'S RIGHT TO AUDIT
	
14

	 	 	 	 
	
13.
	
TRANSFER
	
14

	 	
A.
	
BY COMPANY
	
14

	 	
B.
	
FRANCHISEE MAY NOT TRANSFER WITH APPROVAL OF COMPANY
	

14

	 	
C.
	
CONDITIONS FOR APPROVAL OF TRANSFER
	
15

	 	
D.
	
DEATH OR INCAPACITY OF FRANCHISEE
	
16

	 	
E.
	
EFFECT OF CONSENT TO TRANSER
	
17

	 	
F.
	
COMPANY'S RIGHT OF FIRST REFUSAL
	
17

	 	
G.
	
OPERATION THROUGH A CORPORATION
	
18

	 	
H.
	
COMPLIANCE WITH STATE AND FEDERAL LAWS
	
18

	 	 	 	 
	
14.
	
RENEWAL OF FRANCHISE
	
18

	 	 	 	 
	
15.
	
TERMINATION
	
19

	 	
A.
	
BY FRANCHISE
	
19

	 	
B.
	
BY COMPANY
	
19

	 	
C.
	
OUR OTHER RIGHTS UPON DEFAULT
	
21

	 	 	 	 
	
16.
	
RIGHTS AND OBLIGATIONS OF COMPANY AND FRANCHISEE UPON TERMINATION OR EXPIRATION OF THE FRANCHISE
	

22

	 	
A.
	
PAYMENT OF AMOUNTS OWED TO COMPANY
	
22

	 	
B.
	
TRADEMARKS
	
22

	 	
C.
	
RETURN OF CONFIDENTIAL MATERIAL
	
22

	 	
D.
	
NONSOLICITATION AND NONCOMPETITION
	
22

	 	
E.
	
COMPANY OPTION TO PURCHASE PRODUCTS
	
23

	 	
F.
	
CONTINUING OBLIGATIONS
	
23

	 	 	 	 
	
17.
	
ENFORCEMNT
	
23

	 	
A.
	
SEVERABILITY AND SUBSTITUTION OF VALID PROVISIONS
	
23

	 	
B.
	
WAIVER
	
24

	 	
C.
	
CUMULATAIVE REMEDIES
	
24

	 	
D.
	
WRITTEN CONSENTS FROM COMPANY
	
25

	 	
E.
	
COSTS AND ATTORNEYS' FEES
	
25

	 	
F.
	
GOVERNING LAW/CONSENT TO JURISDICTION
	
25

	 	
G.
	
BINDING EFFECT
	
25

	 	
H.
	
ENTIRE AGREEMENT
	
25

	 	
I.
	
NO LIABILITY TO OTHERS
	
26

	 	
J.
	
CONSTRUCTION
	
26

	 	
K.
	
MULTIPLE ORIGINALS
	
26

	 	
L.
	
INJUNCTIVE RELIEF
	
26

	 	
M.
	
ARBITRATION
	
26

	 	
N.
	
WAIVER OF PUNITIVE DAMAGES AND JURY TRIAL
	
27

	 	
O.
	
SECURITY INTEREST
	
27

	 	
P.
	
NO WITHHOLDING PAYMENTS DUE TO US
	
28

	 	 	 	 
	
18.
	
NOTICES AND PAYMENTS
	
28

	 	 	 	 
	
19.
	
ACKNOWLEDGEMENTS
	
28

	 	 	 	 

EXHIBITS

	
EXHIBIT A
	
PRIMARY AREA OF PROMOTION

	
EXHIBIT B
	
PREMISES

	
EXHIBIT C
	
AGREEMENT FOR THE DESIGNATION OF AN OPERATING COMPANY

	
EXHIBIT D
	
ARBITRATION

	
EXHIBIT E
	
ANNUAL AND QUARTERLY PERFORMANCE CRITERIA

_____________________________________________________________________________________________

TUPPERWARE U.S., INC.

FRANCHISE AGREEMENT

        This Franchise Agreement (this "Agreement") is being entered as of                              , 20      (the "Agreement Date").  The parties to this Agreement are                                                    , as Franchisee (referred to in this Agreement as "you" or "Franchisee"), and TUPPERWARE U.S., INC., a Delaware corporation, as Franchisor (referred to in this Agreement as "we," "us" or the "Company").  The principal place of business of TUPPERWARE U.S., INC. is 14901 South Orange Blossom Trail, Orlando, Florida 32837.  Your principal place of business is                                                      .

1.      INTRODUCTION AND DEFINITIONS.

        We (and our Affiliates) manufacture and distribute, through our authorized Tupperware distributors, a variety of products for personal, family or household use which are identified by our registered trademark TUPPERWARE and other trademarks.  We have achieved a high degree of public acceptance and goodwill for TUPPERWARE Products as a result of their high quality and widespread distribution.  Tupperware distributors play an important role in distributing TUPPERWARE Products to consumers through the home party plan, personal demonstrations and other methods.

        We and you are signing this Agreement because of our and your mutual desire to establish a relationship as franchisor and franchisee on the terms of this Agreement.

        There are a number of terms used throughout this Agreement that have particular meanings.  These terms and their definitions are as follows:

        "Affiliate" - Any person, entity or company that directly or indirectly owns or controls, is directly or indirectly owned or controlled by or is under common control with the Company.

        "Competing Products" - Plastic household products, including food storage containers, food preparation and service products, toys, cookware and housewares, similar to or competitive with TUPPERWARE Products, which are manufactured or marketed by persons other than us or our Affiliates.

        "Confidential Information" - Our Marketing Methods, lists of Consultants of Franchised Tupperware Distributorships and certain other information that we may disclose from time to time during the term of the Franchise, including information about upcoming promotions, new product development and new distribution methods. 

        "Consultant" - An individual, acting as an independent contractor, who has contracted with a Franchised Tupperware Distributorship to sell TUPPERWARE Products to consumers under our policies and procedures.

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        "Estimated Retail Sales" - The aggregate of the Company's suggested retail prices for all TUPPERWARE Products purchased by Consultants from the Franchised Distributorship for resale to consumers.

        "Franchise" - The rights we have granted you to operate a Franchised Tupperware Distributorship under this Agreement.

        "Franchised Distributorship" - The business you will operate under this Agreement.

        "Franchised Tupperware Distributorships" - The businesses we license to distribute TUPPERWARE Products through Consultants using the Marketing Methods. 

        "Home Party Plan and Personal Demonstrations" - The technique of promoting and selling TUPPERWARE Products through demonstrations arranged by Consultants at homes or other locations.

        "Marketing Materials" - Supplies, goods and materials, other than TUPPERWARE Products, that we make available to you and/or Consultants to use in marketing TUPPERWARE Products, including, without limitation, incentive merchandise, promotional materials and sales aids and computer software programs.

        "Marketing Methods" - The sales, purchasing, distribution, marketing and administrative plans, systems, methods and techniques we may require or authorize Franchised Tupperware Distributorships to use from time to time, including, but not limited to, our direct selling techniques for the home party plan and personal demonstrations and the purchasing and distribution methods and procedures that comprise the "Traditional," "Consultant Direct" and/or other types of Franchised Tupperware Distributorships.  "Marketing Methods" also may include administrative and financial controls; reporting systems; ordering and purchasing systems; bookkeeping systems; billing procedures; recruiting, retaining and motivating Consultants and instilling in Consultants the "Sharing Opportunity" through Consultant sales presentations, Consultant incentive programs and other means; promoting the reputation, distribution and use of TUPPERWARE Products; and general business operation and management.

        "Operating Company" - A corporation through which you operate the Franchised Distributorship under Section 13.G. of this Agreement.

        "Operating Manuals" - The "programs binder," "promotional binder" and other materials which we lend you under Section 4.B. of this Agreement, which we may revise and update from time to time, through which we communicate to you the Marketing Methods and our standards, specifications, requirements and/or recommendations for operating the Franchised Distributorship. 

        "Premises" - The location and premises identified in Exhibit B to this Agreement from which you will operate the Franchised Distributorship (which may be your home).

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        "Primary Area of Promotion" - The geographic area described in Exhibit A to this Agreement.

        "Sales Force Goodwill" - The benefit and value of your relationships with Consultants.  

        "Sharing Opportunity" - Our philosophy of marketing TUPPERWARE Products through Franchised Tupperware Distributorships and Consultants in a manner which enables them to realize their potential and encourages them to introduce other persons to participate in marketing TUPPERWARE Products. 

        "Trademarks" - The trademarks and service marks we own and use to identify TUPPERWARE Products or the services of marketing TUPPERWARE Products, including, but not limited to, the registered trademarks TUPPERWARE, TUPPERWAVE and TUPPERTOYS.

        "Transfer" - (Defined in Section 13.B. of this Agreement.)

        "TUPPERWARE Products" - (a) The proprietary lines of plastic products for personal, family, household, commercial or industrial use, including food preparation and service products, food storage products, toys, cookware and housewares, manufactured by or for the Company, identified by the registered TUPPERWARE trademark or other trademarks the Company or its Affiliates own and marketed in whole or in part through our Franchised Tupperware Distributorships; and (b) other products for personal, family or household use marketed in whole or in part through our Franchised Tupperware Distributorships.

2.      GRANT, ACCEPTANCE AND INITIAL TERM.

        Subject to this Agreement's provisions, we hereby grant you the right (the "Franchise") to own and operate a Franchised Tupperware Distributorship (the "Franchised Distributorship") for a period of time commencing on the Agreement Date and expiring on December 31, 20    , unless sooner terminated as provided in this Agreement.  You accept the Franchise and agree that you will devote your full time and attention and best efforts to the Franchised Distributorship, use your best efforts to accomplish the purposes of this Agreement and at all times faithfully, honestly and diligently perform your obligations under this Agreement.

3.      DISTRIBUTION RIGHTS AND PERFORMANCE CRITERIA

        During this Agreement's term, we will make available for sale to you and/or Consultants TUPPERWARE Products for sale to consumers.  You agree to concentrate your promotional and distribution efforts, and to use your best efforts to distribute TUPPERWARE Products, within the Primary Area of Promotion using the home party plan and personal demonstrations.  You may not under any circumstances engage in any promotional activities, or sell and/or distribute any TUPPERWARE Products, whether directly or indirectly through Consultants and other sales force members:

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(1)    outside the United States, outside any of its territories, or outside any other geographic areas we officially authorize to be served from the United States; or

(2)    through or on the Internet, the World Wide Web, or any other similar proprietary or common carrier electronic delivery system (the "Electronic Media").

All such sales and activities are strictly prohibited.

        We retain the right in the Primary Area of Promotion and elsewhere to promote, distribute and market all TUPPERWARE Products through any and all methods of distribution we think best, including, but not limited to, other Franchised Tupperware Distributorships, Tupperware Distributorships that we and our Affiliates own and operate and other channels of distribution.  Your right to distribute TUPPERWARE Products in the Primary Area of Promotion is nonexclusive.

        You acknowledge that we are granting you the nonexclusive right to operate a Franchised Tupperware Distributorship with the expectation that you will satisfy the annual and quarterly performance criteria identified in Exhibit E.  You agree that your failure to satisfy the required criteria will allow (but not obligate) us to terminate this Agreement, as provided in Section 15.B. below.

4.      GUIDANCE AND ASSISTANCE.

        A.    GUIDANCE AND ASSISTANCE.

        We will communicate the Marketing Methods to you through various means, including, but not limited to, the Operating Manuals, advice letters, telephone consultations, audiotapes, videotaped presentations and conferences for Franchised Tupperware Distributorships.  As noted in Section 1 above, Marketing Methods are the sales, purchasing, distribution, marketing and administrative plans, systems, methods and techniques we may require or authorize Franchised Tupperware Distributorships to use from time to time, including, but not limited to, our direct selling techniques for the home party plan and personal demonstrations and the purchasing and distribution methods and procedures that comprise the "Traditional," "Consultant Direct" and/or other types of Franchised Tupperware Distributorships.  We reserve the right to require you to change your selling techniques and purchasing and distribution methods and procedures.  In these circumstances, your status as a Franchised Tupperware Distributorship does not change.  However, the purchasing and distribution methods and procedures that you must follow in operating your Franchised Distributorship may change.  "Marketing Methods" also may include administrative and financial controls; reporting systems; ordering and purchasing systems; bookkeeping systems; billing procedures; recruiting, retaining and motivating Consultants and instilling in Consultants the "Sharing Opportunity" through Consultant sales presentations, Consultant incentive programs and other means; promoting the reputation, distribution and use of TUPPERWARE Products; and general business operation and management.

        You agree to advise us promptly of any improvements to the Marketing Methods and any new techniques, systems, devices, plans, methods or programs for operating the Franchised 

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Distributorship developed by you or your employees or Consultants, which we then will have the perpetual right to use and authorize others to use.  From time to time, we will hold national or regional conferences for Franchised Tupperware Distributorships.  You agree to attend, at your own expense, our national conferences and conferences for your region.  These conferences will be held no more than six (6) times each year.  We may charge you reasonable fees to attend these conferences.

        B.    OPERATING MANUALS.

        We will lend you during the term of the Franchise one (1) complete set of the Operating Manuals, containing the materials (including, as applicable, written materials, audiotapes, videotapes and computer software) that we generally lend to Franchised Tupperware Distributorships to use in their operations.  The Operating Manuals contain mandatory and suggested standards and operating procedures, which we prescribe from time to time for Franchised Tupperware Distributorships and information about your other obligations under this Agreement.  We may modify the Operating Manuals from time to time to reflect changes in both TUPPERWARE Products distributed through our Franchised Tupperware Distributorships and any of the Marketing Methods.  You agree to keep your copy of the Operating Manuals current by immediately substituting in or adding to them all modified or new pages or other materials that we provide you from time to time.  In the event of a dispute about the contents of the Operating Manuals, the master copy we maintain at our principal offices will control.  You may not at any time copy any part of the Operating Manuals without our prior written consent.

5.      MARKS.

        A.    OWNERSHIP AND GOODWILL OF MARKS.

        You acknowledge that your right to use the Trademarks is derived solely from this Agreement and limited to your operating the Franchised Distributorship under this Agreement and all applicable standards and operating procedures we prescribe from time to time during the Franchise term.  Your unauthorized use of the Trademarks is a breach of this Agreement and an infringement of our rights in the Trademarks.  You acknowledge and agree that your use of the Trademarks and any goodwill established by your use will inure exclusively to our benefit and that this Agreement does not confer any goodwill or other interest in the Trademarks on you (other than the right to operate the Franchised Distributorship under this Agreement).  All provisions of this Agreement which apply to the Trademarks will apply to any additional trademarks, service marks and commercial symbols we authorize you to use during this Agreement's term.

        B.    LIMITATIONS ON YOUR USE OF MARKS.

        You agree to identify yourself as a Franchised Tupperware Distributorship in the manner we prescribe.  Each use of any of the Trademarks must include the words "Authorized Distributor" prominently displayed in the following format (or in another format that we have previously approved in writing):

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 [NAME OF DISTRIBUTOR]

AUTHORIZED DISTRIBUTOR

OF TUPPERWARE BRAND PRODUCTS

        You agree not to use any Trademark as part of any corporate or legal business name, with any prefix, suffix or other modifying words, terms, designs or symbols or in any modified form.  You agree not to use any Trademark or similar commercial symbol in performing or selling any unauthorized services or products, as part of any domain name or electronic address you maintain on any Electronic Media (and you may not in any way operate your Franchised Distributorship through or on any Electronic Media, as provided in Section 3 of this Agreement), or in any other manner we have not expressly authorized in writing.  You agree to display the Trademarks prominently in the manner we prescribe on forms, invoices, stationery, business cards, promotional materials and other advertising and marketing materials and to use any notices of trademark and service mark registrations that we specify.  You may not use the Trademarks in any manner we have not authorized.

        C.    DISCONTINUANCE OF USE OF MARKS.

        If it becomes advisable at any time in our sole discretion for us and/or you to modify or discontinue using any Mark and/or use one or more additional or substitute trade or service marks, you agree to comply with our directions within a reasonable time after receiving notice.  We need not reimburse you for your expenses in making these changes, for any loss of revenue attributable to any modified or discontinued Mark or for any expenditures you make to promote a modified or substitute trademark or service mark.

        D.    NOTIFICATION OF INFRINGEMENTS AND CLAIMS.

        You agree to notify us immediately of any apparent infringement of or challenge to your use of any Trademark and of any claim by any person of any rights in any Trademark.  We will have sole discretion to take the action we deem appropriate and the right to control exclusively any litigation or administrative or other proceeding arising out of any infringement, challenge or claim or otherwise relating to any Trademark.  You agree to sign any documents, give any assistance and perform any acts that our attorneys deem necessary or advisable to protect and maintain our interest in any litigation or proceeding related to any Trademark or otherwise to protect and maintain our interests in the Trademarks.

        E.    INDEMNIFICATION FOR USE OF MARKS.

        We agree to reimburse you for all damages for which you are held liable in any proceeding arising out of your authorized use of any Mark under this Agreement and for all costs you reasonably incur in defending any such claim brought against you or any such proceeding in which you are named as a party, if you have timely notified us of the claim or proceeding and otherwise have complied with this Agreement and our directions in responding to the claim or proceeding.  At our option, we may defend and control the defense of any proceeding arising out of your use of any Mark under this Agreement.

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6.      RELATIONSHIP OF THE PARTIES/INDEMNIFICATION.

        A.    INDEPENDENT CONTRACTORS.

        You acknowledge and agree that this Agreement does not create a fiduciary relationship between you and us, that you are an independent contractor and that nothing in this Agreement is intended to make either party a general or special agent, joint venturer, partner or employee of the other party for any purpose.  You agree to operate the Franchised Distributorship under your own business name (which may not include or suggest any Trademark).  You agree to identify yourself conspicuously in all dealings with customers, suppliers, public officials, employees, Consultants and others as the owner of the Franchised Distributorship under a Franchise Agreement with us and to place any other notices of independent ownership that we may require from time to time on your forms, business cards, stationery and advertising and other materials. 

        B.    NO LIABILITY FOR ACTS OF OTHER PARTY.

        Except as this Agreement expressly authorizes, neither party to this Agreement may make any express or implied agreements, warranties, guarantees or representations or incur any debt in the name or on behalf of the other party or represent to any person, entity or government agency that the relationship between the parties is other than that of franchisor and franchisee.  We will not be liable for any representations or warranties you make that are not expressly authorized under this Agreement, for any agreements you enter, for any of your actions or failures to act or for your failure to comply fully with this Agreement.  We will not be liable for any damages to any person or property directly or indirectly arising out of the Franchised Distributorship's operation.

        C.    TAXES.

        We will have no liability for any sales, use, service, occupation, excise, gross receipts, income, property or other taxes levied against you or your assets (or upon us) in connection with the sales made or business conducted by you and/or Consultants, payments you make to us under this or any related agreements or payments we make to you under this Agreement (except our own income taxes and any taxes we are required by law to collect from you on purchases from us).

        D.    INDEMNIFICATION.

        You agree to indemnify, defend and hold harmless us and our Affiliates, and our respective shareholders, directors, officers, employees, agents, successors and assigns (the "Indemnified Parties"), against and to reimburse any one or more of the Indemnified Parties for all claims, obligations and damages described in this Paragraph, any and all taxes described in Paragraph C of this Section and any and all claims and liabilities directly or indirectly arising out of your operation of the Franchised Distributorship or your breach of this Agreement.  For purposes of this indemnification, "claims" include all obligations, judgments, settlements, damages (actual, consequential or otherwise) and costs that an Indemnified Party reasonably incurs in defending any claim against it, including, without limitation, reasonable accountants', 

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arbitrators', attorneys' and expert witness fees, costs of investigation and proof of facts, court costs, other expenses of litigation, arbitration or alternative dispute resolution and travel and living expenses.  Indemnified Parties may defend any claims against them at your expense.  This indemnity will continue in full force and effect subsequent to and notwithstanding this Agreement's expiration or termination.

7.      FEES AND PAYMENTS.

        A.    INITIAL FEES.

        You need not pay any initial fee or other type of franchise fee in connection with entering into or performing under this Agreement.  You must, however, pay for goods and services you order from us (as provided below).

        B.    TERMS OF SALE TO FRANCHISEE.

        We will publish from time to time a price list for TUPPERWARE Products and Marketing Materials available for sale to you and/or Consultants according to our policies and procedures.  You agree to accept and pay for all TUPPERWARE Products, Marketing Materials and other items you order from us according to the price list and the applicable freight charges and shipping, handling and similar fees we publish from time to time.  We may impose any customer handling, shipping and similar charges whenever we deem appropriate, and you agree to pay these charges within the timeframe we specify.  We will deliver all TUPPERWARE Products, Marketing Materials and other items ordered from us according to the procedures described in the Operating Manuals or elsewhere.  You agree to maintain your account with us according to the terms of payment we establish with you from time to time and within any line of credit that you establish with us.  We have the right not to sell any more TUPPERWARE Products to you until all payments due are made or to condition any sale on your paying for the TUPPERWARE Products before we ship them to you or others.  These rights are in addition to our other rights and remedies under this Agreement and applicable law.

        C.    INTEREST ON LATE PAYMENTS.

        All amounts which you owe us will, at our option, bear interest after their due dates at the rate of one and one-half percent (1.5%) per month or the highest contract rate of interest permitted by law, whichever is less.  This Paragraph is not our agreement to accept any payments after they are due or our commitment to extend credit to, or otherwise finance your operation of, the Franchised Distributorship.  Your failure to pay all amounts when due is a ground for terminating this Agreement, as provided in Section 15, despite this Paragraph's provisions.

        D.    APPLICATION OF PAYMENTS.

        When we receive a payment from you, or money owed to you comes into our possession, we will have the right to apply it as we see fit in our sole discretion to any of your past due indebtedness to us or our Affiliates, whether for purchases or other charges, regardless of how you may designate a particular payment to be applied.

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8.      CONFIDENTIAL INFORMATION.

        You acknowledge and agree that the Confidential Information gives us, our Franchised Tupperware Distributorships and Consultants a competitive benefit.  Confidential Information is confidential, may include our trade secrets and is disclosed to you solely on the condition that you agree, and you do agree, that you:

        (1)    will not use the Confidential Information other than in operating the Franchised Distributorship;

        (2)    will maintain the absolute confidentiality of the Confidential Information; 

        (3)    will not make unauthorized copies of any records (in written, electronic or other form) disclosing the Confidential Information; and 

        (4)    will adopt and implement all reasonable procedures we prescribe from time to time to prevent disclosure of the Confidential Information, including, but not limited to, restrictions on disclosure to Consultants and employees and using nondisclosure and/or noncompetition agreements we prescribe for Consultants or employees who have access to the Confidential Information.

        The restrictions on your disclosure and use of the Confidential Information will not apply to the following:  (a) disclosure or use of information, methods or techniques which are generally known and used by other businesses selling household products through personal demonstrations or methods similar to the home party plan (as long as the general knowledge is not due to your disclosure and the disclosure or use otherwise is not prohibited by this Agreement), if you have first given us written notice of your intended disclosure and/or use; and (b) disclosure of the Confidential Information in legal proceedings when you are legally required to disclose it, if you have first given us the opportunity to obtain an appropriate legal protective order or other assurance satisfactory to us that the information required to be disclosed will be treated confidentially.

9.      EXCLUSIVE RELATIONSHIP.

        You agree that you will use your best efforts to promote, sell and distribute through the Franchised Distributorship all TUPPERWARE Products.  You agree not to promote, offer, sell or otherwise distribute through the Franchised Distributorship any products or services other than TUPPERWARE Products without our prior written approval.

        You agree that we could not protect the Confidential Information against unauthorized use or disclosure or encourage a free exchange of ideas and information among our Franchised Tupperware Distributorships if they and their immediate family members could hold interests in or perform services for any businesses marketing Competing Products or using marketing methods similar to the Marketing Methods.  We have entered this Agreement with you on the express condition that, during its term, neither you nor any member of your immediate family 

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will have any direct or indirect interest as a disclosed or beneficial owner in, or perform services as a director, officer, manager, employee, consultant, representative or agent for:  (a) any business or association which promotes or sells Competing Products; or (b) any business or association that franchises, licenses or develops businesses in the United States or Canada that promote or sell Competing Products; or (c) any business or association that sells goods for household use, other than Competing Products, using methods similar to the Marketing Methods (including the home party plan and personal demonstrations); or (d) any business or association that franchises, licenses or develops businesses in the United States or Canada that promote or sell goods for household use, other than Competing Products, using methods similar to the Marketing Methods (including the home party plan and personal demonstrations).

10.     IMAGE AND OPERATING PROCEDURES.

        A.    PREMISES.

        You agree to operate the Franchised Distributorship at and from the Premises (as described in Exhibit B to this Agreement), which may be your home.  You represent that the Premises are suitable and adequate for your storage needs for TUPPERWARE Products and Marketing Materials and for operating the Franchised Distributorship (other than holding Consultant sales presentations).

        If the Premises are not your home, you agree to maintain the Premises in good condition, repair, cleanliness and neatness.  You acknowledge that we have an interest in the location of the Premises and agree in all cases that you will not relocate the Premises or use any other premises as office or storage facilities for the Franchised Distributorship without our prior written approval.  However, you may hold sales presentations for Consultants at suitable locations away from the Premises.  If you operate your Franchised Distributorship from your home, you must conduct sales presentations at appropriate meeting spaces outside your home.

        B.    TUPPERWARE CONSULTANTS.

        You acknowledge and agree that we are a party plan company and our method of distributing TUPPERWARE Products through Franchised Tupperware Distributorships has been based primarily upon the promotion and sale of TUPPERWARE Products by Consultants appointed by our Franchised Tupperware Distributorships according to our policies and Marketing Methods, which are based on the party plan method.  You understand the importance of recruiting and rewarding Consultants using the Marketing Methods and agree that you will fully and faithfully follow the Marketing Methods in all aspects of recruiting, rewarding, motivating and otherwise dealing with Consultants.  You agree to coordinate the promotional and sales activities of all Consultants you appoint and to use your best efforts to instill in Consultants the "Sharing Opportunity."  You may enter into Consultant contracts only with persons of good character who have sufficient aptitude to be Consultants and otherwise meet our standards and must make available to all Consultants the Marketing Materials that we recommend for Consultants.  You agree not to deviate in any way from the Marketing Methods (including policies and incentive programs pertaining to the recruitment of and relations with Consultants) without our prior written approval.  You agree to follow our instructions concerning 

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the release of new TUPPERWARE Products and beginning promotions and related sales and marketing programs.

        C.    STANDARDS AND PROCEDURES.

        You acknowledge that operating the Franchised Distributorship under our standards of service and quality and according to the "Sharing Opportunity" is important to us, our other Franchised Tupperware Distributorships and Consultants.  We will endeavor to maintain high standards of quality and service for all Franchised Tupperware Distributorships.  To this end, you agree to cooperate with us by maintaining those high standards of quality and service in operating the Franchised Distributorship.  You agree to comply with all mandatory standards and operating procedures relating to the distribution of TUPPERWARE Products, recruitment of and relations with Consultants and operation of the Franchised Distributorship, whether or not part of the Marketing Methods.  You agree to participate in any national promotions that we conduct (although you may determine the prices at which you sell TUPPERWARE Products).  Any mandatory standards and operating procedures (whether or not part of the Marketing Methods) that we prescribe from time to time in the Operating Manuals, or otherwise communicate to you in writing, will be considered provisions of this Agreement as if fully set forth in this Agreement.  All references to "this Agreement" include all of these mandatory standards and operating procedures.

        D.    MAINTENANCE AND REFURBISHING OF PREMISES AND VEHICLES.

        You agree to maintain the condition and appearance of the Premises (if your Franchised Distributorship is not home-based) and any vehicles (regardless of the location of your Franchised Distributorship) used in the Franchised Distributorship under our standards and to effect any interior and exterior cleaning, repair, maintenance and refurbishing of the Premises and vehicles, including periodic painting and decorating and replacement of worn out or obsolete furniture, furnishings, equipment and signs, that we reasonably require from time to time.

        E.    COMPLIANCE WITH LAWS AND GOOD BUSINESS PRACTICES.

        You agree to secure and maintain in force in your name all required licenses, permits and certificates relating to the operation of the Franchised Distributorship.  You agree to operate the Franchised Distributorship in full compliance with all applicable laws, ordinances and regulations, including, without limitation, all government regulations relating to workers' compensation insurance, unemployment insurance and withholding and paying federal, state and local taxes.  All advertising and promotion you use must be completely factual and in good taste (in our judgment), conform to high standards of ethical advertising and be approved by us in writing before you use them.  You may not use any materials that we have disapproved or have not yet authorized for release to Consultants and the public.  In all your dealings with us, Consultants, customers, potential customers and public officials, you must adhere to high standards of honesty, integrity, fair dealing and ethical conduct.  You agree to refrain from any business or advertising practice that may harm us or the goodwill associated with the Trademarks, Consultants or other Franchised Tupperware Distributorships.  You must notify us 

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in writing within five (5) days after the commencement of any action, suit or proceeding, or the issuance of any order, writ, injunction, awards or decree of any court, agency or other governmental unit, which may adversely affect our, your or any other Franchised Tupperware Distributorship's operation, financial condition or reputation.

        F.   FORMS AND INVOICES.

        You agree to use the invoices, purchase orders and other forms that we approve.  You must obtain the forms from us or suppliers we approve to produce them using the Trademarks.

        G.    CUSTOMER RELATIONS/WARRANTIES.

        You agree to provide prompt and conscientious service to all consumers serviced through the Franchised Distributorship and all Consultants and to use your best efforts to make or cause prompt delivery of TUPPERWARE Products and Marketing Materials to Consultants and/or consumers.  You agree to respond to customer complaints and inquiries promptly and courteously and to comply strictly with policies and procedures we prescribe relating to customer service and warranties for TUPPERWARE Products.

        H.    INSURANCE.

        During the term of the Franchise, you must maintain in force at your sole cost the following insurance policies underwritten by carriers reasonably acceptable to us:

        (1)    Commercial general liability insurance in an amount not less than One Million Dollars ($1,000,000) per occurrence and in the aggregate covering bodily injury, personal injury and property damage claims caused by or occurring in connection with the Franchised Distributorship's operation, including its Premises.  Tupperware Corporation and its affiliates and subsidiaries are to be added as additional insureds on this policy; and

        (2)    Comprehensive auto liability insurance with a combined single limit of not less than One Million Dollars ($1,000,000) per accident.  This policy shall provide coverage for bodily injury and property damage claims arising out of the Franchised Distributorship's owned, hired and non-owned vehicles.  Tupperware Corporation and its affiliates and subsidiaries are to be added as additional insureds on this policy.

        We may periodically increase the amounts and types of coverage required under the terms of this Agreement to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances.  Your insurance policies must be primary and non-contributory to any similar policies we maintain.  Each required policy must give us thirty (30) days' prior written notice of cancellation, nonrenewal and/or material modification.  A certificate of insurance documenting the required coverages shall be sent to us when this Agreement is finalized.  Renewal certificates are to be sent to us thirty (30) days before the insurance policies expire.

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        I.    COMPUTER.

        You must use in operating the Franchised Distributorship the brands, models and types of computer hardware, peripheral equipment and software that we prescribe from time to time.  We may require you to obtain specified items and may modify specifications for and components of this computer system from time to time.  Our modification of specifications for the computer system's components may require you to incur costs to purchase, lease and/or license new or modified computer hardware and/or software and to obtain service and support during this Agreement's term.  You agree to incur the costs of obtaining the computer hardware and software comprising the computer system (or additions or modifications).  You acknowledge that any computer software developed by or for us is our property, that you may use that software only in the manner we authorize and that you may not copy, duplicate or modify the software without our prior written consent.

11.     REPORTS AND FINANCIAL STATEMENTS.

        You agree to furnish us each week on the day we designate, in the form we prescribe from time to time, a report of your and the Consultants' activities and sales for the preceding week and any other data, information and supporting records that we require.  Upon written notice, we may require you to prepare and submit to us monthly and annual financial statements (including a balance sheet and a profit and loss statement) reflecting the Franchised Distributorship's operation and financial condition.  You must verify and sign each report and financial statement in the manner we prescribe.  As noted in Section 7.B. above, we may require you to use our designated accounting services under certain circumstances.

12.     INSPECTIONS AND AUDITS.

        A.    COMPANY'S RIGHT TO INSPECT.

        To determine whether you are complying with this Agreement, the Marketing Methods and any other specifications, standards, operating procedures and policies that we prescribe for operating Franchised Tupperware Distributorships, to assess the service being provided to Consultants and retail customers in the area served by the Franchised Distributorship and to engage in market research and testing, and in connection with our exercising our other rights under this Agreement and conducting our business, we have the right at any reasonable time to:

        (1)    inspect the Premises (unless it is your home) and all vehicles and facilities used in operating the Franchised Distributorship;

        (2)    contact, interview, observe and videotape you, Consultants and employees while they conduct business;

        (3)    contact and interview hostesses and guests of Tupperware parties held by Consultants; and

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        (4)    take an inventory of any TUPPERWARE Products and Marketing Materials in your possession and remove samples of them for inspection and testing.

        You agree to cooperate fully with our representatives making these inspections, observations or interviews.

        B.    COMPANY'S RIGHT TO AUDIT.

        We may at any time during business hours, upon forty-eight (48) hours' prior notice to you, inspect and audit, or cause to be inspected and audited, the business records, bookkeeping and accounting records, sales, use and other tax records and returns and other records of the Franchised Distributorship and any Operating Company.  You agree to cooperate fully with our representatives and any independent accountants we hire to conduct any inspection or audit.

13.     TRANSFER.

        A.    BY COMPANY.

        This Agreement is fully transferable by us and will inure to the benefit of any transferee or other legal successor to our interests in it.

        B.    FRANCHISEE MAY NOT TRANSFER WITHOUT APPROVAL OF COMPANY.

        You understand and acknowledge that the rights and duties created by this Agreement are personal to you and that we have entered this Agreement with you in reliance upon your individual (or collective) character, skill, aptitude, attitude, business ability and financial capacity.  Accordingly, neither this Agreement, the Franchise (or any interest in the Franchise), any ownership interest in an Operating Company nor the Franchised Distributorship (or any interest in it) may be transferred without our prior written approval.  Any transfer without this approval is a breach of this Agreement and conveys no rights to or interests in this Agreement, the Franchise, the Operating Company or the Franchised Distributorship.  A transfer of this Agreement and the Franchise (or any interest in them) may be made only with a transfer of the Franchised Distributorship.  As used in this Agreement, the term "transfer" includes the voluntary, involuntary, direct or indirect assignment, sale, gift or other disposition of any interest in:

        (1)    this Agreement;

        (2)     the Franchise;

        (3)    the Franchised Distributorship or any of its essential assets, including, without limitation, sales force goodwill (other than sales or other dispositions of inventory in the normal course of business); or

        (4)    the ownership of an Operating Company.

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An assignment, sale or other disposition includes, without limitation:

        (a)    the transfer of an interest in this Agreement, the Franchise, the Franchised Distributorship or an Operating Company in a divorce, dissolution or insolvency proceeding or otherwise by operation of law;

        (b)    the transfer of an interest in this Agreement, the Franchise, the Franchised Distributorship or an Operating Company, in the event of your death, by will, declaration of or transfer in trust or under the laws of intestate succession;

        (c)    the transfer of ownership of a partnership interest or capital stock in an Operating Company;

        (d)    merger or consolidation or issuance of additional securities representing an ownership interest in an Operating Company;

        (e)    any sale of common stock, or any security convertible to common stock, of an Operating Company; and

        (f)    pledge of this Agreement or the Franchised Distributorship's assets as security, foreclosure upon the Franchised Distributorship or any of its assets or your transfer, surrender or loss of possession, control or management of the Franchised Distributorship.

        C.    CONDITIONS FOR APPROVAL OF TRANSFER.

        If you are fully complying with this Agreement, then, subject to the other provisions of this Section 13, we will not unreasonably withhold our approval of a transfer that meets all the applicable requirements of this Agreement.  The proposed transferee must be an individual of good character (preferably an existing distributor with a current account history with us, in our sole discretion) and otherwise meet our then applicable standards and criteria for new owners of Franchised Distributorships.  If the transfer is of this Agreement or a controlling interest in the Franchised Distributorship, or is one of a series of transfers (regardless of the period of time over which these transfers take place) which taken together would constitute the transfer of this Agreement or a controlling interest in the Franchised Distributorship, we may impose additional conditions.  The conditions that we may require you and/or the transferees (as applicable) to satisfy before, or concurrently with, the effective date of the transfer are:

        (a)    The transferee must have sufficient business experience, aptitude and financial resources to operate the Franchised Distributorship;

        (b)    You must pay any amounts owed for purchases from us and our Affiliates and all other amounts owed to us or our Affiliates which then are unpaid;

        (a)    The transferee must complete to our satisfaction any orientation program we then require for Franchised Tupperware Distributorships;

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        (d)    The transferee must assume and agree to be bound by all terms and conditions of this Agreement for the remainder of its term or, at our option, sign our then current form of franchise agreement (which may provide for different rights and obligations than those provided in this Agreement) for a term equal to the remaining term under this Agreement;

        (e)    You (and each owner of an interest in the Operating Company) must execute a general release, in a form satisfactory to us, of any and all claims against us, our Affiliates and our and their respective officers, directors, employees and agents; 

        (f)    We must have reviewed the material terms and conditions of the transfer to determine to our satisfaction (without representing to you or the transferee) that the price and terms of payment are not so burdensome as to affect adversely the transferee's operation of the Franchised Distributorship (this does not apply to transfers by gift, bequest or inheritance);

        (g)    If you or any shareholder in an Operating Company finances any part of the sale price of the transferred interest, you and/or that shareholder must agree that all of the transferee's obligations under any promissory notes, agreements or security interests that you or your owners have reserved in the assets of the Franchised Distributorship will be subordinate to the transferee's obligations to pay amounts owed to us and our Affiliates for purchases and other items and otherwise to comply with this Agreement and any other agreements with us; and

        (h)    You (and each owner of an interest in the Operating Company) must, for a two (2) year period commencing on the effective date of the transfer, comply with the restrictions set forth in Section 16.D. below.

        If two or more persons own the Franchised Distributorship, we granted the Franchise to you based on the collective qualifications of all owners.  Accordingly, if one owner proposes to transfer its interest, we also may require the transferee to possess qualifications and experience which, when combined with the qualifications and experience of the remaining owner(s), will meet our standards and expectations regarding the Franchised Distributorship's overall management and operation.

        D.    DEATH OR INCAPACITY OF FRANCHISEE.

        If you die or become permanently incapacitated, your personal representative must transfer your interest in this Agreement, the Franchise and the Franchised Distributorship to a third party (whom we approve) within a reasonable time, not to exceed nine (9) months from the date of death or permanent incapacity.  The transfer will be subject to all the terms and conditions applicable to transfers contained in this Section 13.  Failure to dispose of the interest in this Agreement, the Franchise and the Franchised Distributorship within this period of time will be a breach of this Agreement.  The term "permanently incapacitated" means a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent you from managing and operating the Franchised Distributorship for ninety (90) days or more.  Until your interest in this Agreement, the Franchise and the Franchised Distributorship is transferred as required, we have the right (but not the obligation) to appoint a manager to operate the Franchised Distributorship (even if there is another living owner).  You

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must reimburse us for our expenses of providing management services.  We may cease providing those services at any time.

        We also have the right (but not the obligation) to appoint a manager to operate the Franchised Distributorship (even if there is another living owner) if you become "incapacitated," although not permanently incapacitated.  The term "incapacitated" means a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent you from managing and operating the Franchised Distributorship for any period of time.  You must reimburse us for our expenses of providing management services, which we may cease providing at any time.

        E.    EFFECT OF CONSENT TO TRANSFER.

        Our consent to a proposed transfer under this Section 13 will not be a guarantee of the transferee's success or a waiver of any claims we may have against you or of our right to demand the transferee's exact compliance with this Agreement.

        F.    COMPANY'S RIGHT OF FIRST REFUSAL.

        If you at any time determine to sell an interest in this Agreement, the Franchise or the Franchised Distributorship, you must obtain a bona fide, executed written offer from a responsible and fully disclosed purchaser (preferably an existing distributor with a current account history with us, in our sole discretion) and immediately submit a true and complete copy of the offer (and any proposed "side" or ancillary agreements) to us.  The offer must apply only to an interest in this Agreement, the Franchise or the Franchised Distributorship.  It may not include the purchase of any other property or rights, but, if the offeror proposes to buy any other property or rights from you under a separate offer, the price and terms of purchase offered to you for the interest in this Agreement, the Franchise or the Franchised Distributorship must reflect the bona fide price offered for that interest and not reflect any value for any other property or rights.  We will have the right, exercisable by written notice delivered to you within thirty (30) days after we receive both an exact copy of the offer and all other information we request, to purchase the interest for the price and on the terms and conditions contained in the offer, provided that we may substitute cash for any form of payment proposed in the offer, our credit will be deemed equal to the credit of any proposed purchaser and we will have not less than sixty (60) days to prepare for closing.  We may purchase the interest subject to all customary representations and warranties given by the seller of the assets of a business (including, without limitation, representations and warranties as to ownership and condition of and title to assets; liens and encumbrances relating to the assets; validity of contracts; and liabilities affecting the assets).  If we do not exercise our right of first refusal, you may complete the sale to the purchaser on the exact terms of the original offer, subject to our approval of the transfer as provided in Paragraphs B and C of this Section.  However, if the sale to the purchaser is not completed within ninety (90) days after delivery of the offer to us, or if there is a material change in the terms of the sale (which you agree promptly to communicate to us), we will have an additional right of first refusal for thirty (30) days following either the expiration of the ninety (90) day period or notice to us of the material change(s) in the terms of the sale, either on the terms originally offered or the modified terms, at our option.

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        G.    OPERATION THROUGH A CORPORATION.

        If you wish to operate the Franchised Distributorship through a corporation (referred to as the "Operating Company"), we will allow you to do so under certain conditions.  You (and, if the Franchisee is more than one individual, all individuals collectively) must at all times own not less than seventy percent (70%) of the equity interests in the Operating Company, have at least the percentage of voting power in the Operating Company needed to authorize a transfer of substantially all of its assets, have the power to control the operation and transfer of the Franchised Distributorship and be the Operating Company's principal officers.  The Franchised Distributorship must be the only business that the Operating Company conducts and must be operated solely by the Operating Company.  The Operating Company must assume all your liabilities and obligations under or relating to the Franchised Distributorship, but you will be jointly and severally liable for all of the Operating Company's obligations.  You may operate the Franchised Distributorship through an Operating Company only under a separate written agreement with us in the form we require.  Under that agreement, you will retain all renewal rights, and the Operating Company will not have any renewal rights of its own.  If you renew by signing a new franchise agreement and related documents, you must sign them, and the Operating Company may continue operating the Franchised Distributorship only if we, you and the Operating Company sign a new agreement containing the terms and conditions we then prescribe.

        H.    COMPLIANCE WITH STATE AND FEDERAL LAWS.

        You agree that, in any proposed transfer of an interest in this Agreement, the Franchise, the Franchised Distributorship or an Operating Company, you will comply, and assist us in complying, with any laws that apply to the transfer, including state and federal laws governing the offer and sale of franchises.

14.     RENEWAL OF FRANCHISE.

        This Agreement will be renewed automatically for a renewal period of one (1) year when its initial term or then current renewal period expires unless:

        (a)    You have given us written notice, not less than ninety (90) days before the end of the initial term or then current renewal period, that you elect not to renew the Franchise; or

        (b)    We have given you written notice, not less than ninety (90) days before the end of the initial term or then current renewal period, that we will renew the Franchise only on the condition that you execute the standard form of franchise agreement and ancillary agreements we then are using for renewing or granting franchises for Franchised Tupperware Distributorships (modified as appropriate to reflect that it pertains to the renewal of a franchise), which may contain terms and conditions materially different from those contained in this Agreement; or

        (c)    We have given you written notice, not less than ninety (90) days before the end of the initial term or then current renewal period, that we will not renew the Franchise due to your 

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failure to comply substantially with this Agreement during the initial term or then expiring renewal period; or

        (d)    Both we and you agree not to renew the Franchise.

        If renewal of the Franchise is subject to subparagraph (b) above, you must sign and deliver to us, within thirty (30) days after you receive them, the form of franchise agreement and ancillary agreements we then are using, which may include, without limitation, general releases of any and all claims against us and our Affiliates and our and their respective shareholders, officers, directors, employees and agents. 

        We may extend the term of this Agreement for the period of time necessary to give you the notice of nonrenewal required by this Agreement or applicable law.

15.     TERMINATION.

        A.    BY FRANCHISEE.

        You may terminate this Agreement at any time, with or without cause, by giving us not less than sixty (60) days' prior written notice of your election to terminate.  We and you also may terminate this Agreement at any time by mutual consent.

        B.    BY COMPANY.

        This Agreement will terminate immediately upon delivery of written notice of termination to you if you, any owner of an Operating Company or, as appropriate, the Franchised Distributorship:

        (1)    fails to satisfy the annual or quarterly performance criteria within the Primary Area of Promotion, as provided in Section 3 and Exhibit E;

        (2)    abandons, or surrenders or transfers control of, the Franchised Distributorship's operation without our prior written approval;

        (3)    makes any material misrepresentation or omission in applying for the Franchise or operating the Franchised Distributorship, including, but not limited to, submitting false information to us or others or otherwise making false statements in connection with any promotional, marketing or other programs, whether or not you or the Franchised Distributorship actually participates in these programs;

        (4)    is convicted by a trial court of, or pleads no contest to, a felony or other crime or offense;

        (5)    engages in any dishonest or unethical conduct that is likely to affect adversely the reputation of your Franchised Distributorship, us, TUPPERWARE Products or any other Franchised Tupperware Distributorship;

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        (6)    interferes with our inspection or audit rights, as provided in Section 12 of this Agreement;

        (7)    fails to make the required transfer upon death or permanent incapacity;

        (8)    fails to pay when due any federal or state income, sales or other taxes due on the Franchised Distributorship's operation, unless you are in good faith contesting your liability for these taxes;

        (9)    makes any unauthorized use of the Marks or any unauthorized use or disclosure of the Operating Manuals or other Confidential Information;

        (10)    makes an unauthorized transfer of any interest in this Agreement, the Franchise, the Franchised Distributorship or an Operating Company;

        (11)    engages in any promotional activities, or sells and/or distributes any TUPPERWARE Products, whether directly or indirectly through Consultants and other sales force members, in any areas or by any means prohibited under Section 3 of this Agreement;

        (12)    engages in, or threatens to engage in, any acts of physical violence during the operation of the Franchised Distributorship; or

        (13)    (i) fails on three (3) or more separate occasions within any period of six (6) consecutive months to submit when due reports or other data, information or supporting records, to pay when due amounts owed for purchases from us or our Affiliates or other items or otherwise to comply with this Agreement, whether or not any of these failures to comply are corrected after you receive notice of default, or (ii) fails on two (2) or more separate occasions within any period of six (6) consecutive months to comply with the same obligation under this Agreement, whether or not the failures are corrected after you receive notice of default.

        In addition to these grounds for terminating the Agreement immediately without your having an opportunity to cure, this Agreement will terminate without further action by us or notice to you if you:

        (a)    fail (i) to comply strictly with our customer service and warranty requirements or (ii) to follow our instructions concerning the release of new TUPPERWARE Products and beginning promotions and related sales and marketing programs and do not correct the failures in subparagraphs (i) or (ii) within seven (7) days after written notice of the failure is delivered to you; or

        (b)    fail to make payments of any amounts due to us or our Affiliates for purchases or any other reason and do not correct the failure within ten (10) days after written notice of the failure is delivered to you; or 

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        (c)    fail to comply with any other provision of this Agreement or any mandatory standard or operating procedure we prescribe and do not correct the failure within thirty (30) days after written notice of the failure to comply is delivered to you.

        C.    OUR OTHER RIGHTS UPON DEFAULT.

        In addition to and without limiting our other rights and remedies if you default under this Agreement, we have certain rights that we may exercise in our sole discretion after we give you any notice of your default under this Agreement and until the default is fully cured.  Our rights include (but are not limited to) the following:

        (a)    the right to condition the shipment or sale of goods to you on our receipt of full payment for the goods with your order;

        (b)    the right to suspend any and all services provided on a fee for service basis if we do not receive full payment for the services in advance;

        (c)    the right to manage the Franchised Distributorship for you, as provided below;

        (d)    the right to prohibit you and your agents and employees from attending any and all meetings, conferences or training sessions we hold or sponsor; and

        (e)    the right to suspend the dissemination to you of any and all publications, materials or updated information for Franchised Distributorships.

        Our exercising the rights under this Paragraph will not be a defense for you to our enforcement of any provision of this Agreement or suspend or release you from or waive any obligation that you otherwise would owe to us or our Affiliates.

        If we have the right to assume the management of the Franchised Distributorship, we have sole discretion to determine whether to exercise that right and when to cease our management.  You agree to cooperate fully with us if we exercise our management right.  Our management of the Franchised Distributorship under this Paragraph will be as your agent on your behalf and not as a partner or joint venturer with you.  As manager, we may do all things necessary or appropriate to operate the Franchised Distributorship under this Agreement, including to control all receipts and disbursements of the Franchised Distributorship.  We will not be a fiduciary but will have a duty only to utilize our reasonable efforts to manage the Franchised Distributorship under this Agreement.  We will not be liable to you or any third party for any debts, losses or obligations the Franchised Distributorship incurs during our management or otherwise.

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16.     RIGHTS AND OBLIGATIONS OF COMPANY AND FRANCHISEE UPON TERMINATION OR EXPIRATION OF THE FRANCHISE.

        A.    PAYMENT OF AMOUNTS OWED TO COMPANY.

        You agree to pay us within fifteen (15) days after this Agreement terminates or expires, or on any later date that the amounts due to us are determined, any amounts owed for purchases from us or our Affiliates and all other amounts owed to us or our Affiliates which then are unpaid.

        B.    TRADEMARKS.

        You agree that, after this Agreement terminates or expires, you will:

        (1)    not directly or indirectly at any time or in any manner identify yourself or any business as our current or former franchisee or licensee or as otherwise associated with us, use any of the Trademarks or any colorable imitation of a Trademark in any manner or for any purpose or use for any purpose any trade name, trademark or service mark or other commercial symbol that suggests or indicates a connection or association with us;

        (2)    remove all of the Trademarks from any facilities and vehicles you have used and return to us or destroy all invoices, purchase orders, advertising and marketing materials, forms and other materials containing any Trademark or otherwise identifying or relating to a Franchised Tupperware Distributorship; 

        (3)    take any action that may be required to cancel all fictitious or assumed name or equivalent registrations relating to your use of any Trademark; and 

        (4)    within thirty (30) days after this Agreement terminates or expires, give us evidence satisfactory to us of your compliance with these obligations.

        C.    RETURN OF CONFIDENTIAL MATERIAL.

        You agree that, after this Agreement terminates or expires, you will immediately cease using in any business or otherwise the Confidential Information disclosed to you under this Agreement and return to us all copies of the Operating Manuals which we have loaned you and any other materials that contain any Confidential Information, including computer software.

        D.    NONSOLICITATION AND NONCOMPETITION.

        To protect our Confidential Information and the goodwill associated with Franchised Tupperware Distributorships, you agree that for a period of two (2) years beginning on the date this Agreement terminates or expires:

        (1)    you will not, directly or indirectly, solicit any person who was your Consultant during any part of the year preceding the date of termination or expiration to engage as an 

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employee or independent contractor in any business which promotes, distributes or sells (a) Competing Products or (b) consumer goods or services (other than Competing Products) using methods similar to the Marketing Methods (including the home party plan and personal demonstrations); and

        (2)    you will not, directly or indirectly, on your own account or otherwise, engage in any business or activity involving the promotion, distribution or sale of (a) Competing Products or (b) goods or services (other than Competing Products) in whole or in part through the use of methods similar to the Marketing Methods (including the home party plan and personal demonstrations).

        E.    COMPANY OPTION TO PURCHASE PRODUCTS.

        When this Agreement terminates or expires, we have the right to purchase all or any part of your inventory of TUPPERWARE Products and Marketing Materials.  The purchase price will be our then current price (but not to exceed the amount you originally paid for the inventory) to Franchised Tupperware Distributorships for the TUPPERWARE Products and Marketing Materials that are part of our then current line and our then current standard repurchase allowance for obsolete TUPPERWARE Products and Marketing Materials.

        F.    CONTINUING OBLIGATIONS.

        All obligations of this Agreement (whether yours or ours) which expressly or by their nature survive the expiration or termination of this Agreement will continue in full force and effect after the expiration or termination until they are satisfied in full or by their nature expire.

17.     ENFORCEMENT.

        A.    SEVERABILITY AND SUBSTITUTION OF VALID PROVISIONS.

        The provisions of this Agreement are deemed to be severable.  If any court, agency or other tribunal with proper jurisdiction in a proceeding to which we are a party holds, in a final unappealable ruling, that any part of this Agreement is invalid or conflicts with any applicable law, that ruling will not affect that part of this Agreement unless and until: (1) if you are party to that proceeding, the time for appeal expires; or (2) if you are not a party to that proceeding, we give you written notice that we will not enforce that part of this Agreement and/or will modify this Agreement according to the ruling.  In either case, we and you agree that the only effect of the ruling and our nonenforcement of the invalid or unenforceable part of this Agreement will be that the invalid part(s) will be deleted from this Agreement or modified according to the ruling, and the parts of this Agreement which are meaningful after the deletion or modification of the invalid part will continue to be effective and bind you and us.

        To the extent that either Section 9 or Section 16.D. is deemed unenforceable because of its scope in terms of area, activity prohibited or length of time, you agree that the unenforceable provision will be deemed modified or limited to the extent and in the manner necessary to make 

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that particular provision valid, and to make your obligations enforceable to the fullest extent possible, under the laws applicable to the covenant's validity.

        If any provision of this Agreement is inconsistent with any law applicable to this Agreement or the Franchise which requires a greater advance notice of the termination or nonrenewal of this Agreement than is required under this Agreement, or the taking of some other action which is not required by this Agreement, then both parties will comply with the requirements of that law as if they were substituted for the inconsistent provision of this Agreement or added to this Agreement.  If any law applicable to this Agreement or the Franchise makes any provision of this Agreement (including any mandatory specification, standard or operating procedure we prescribe) invalid or unenforceable, then we will have the right, in our sole discretion, to modify that provision to the extent necessary to make it valid and enforceable.  You agree to be bound by each provision of this Agreement to the greatest extent to which you may lawfully be bound.

        B.    WAIVER.

        (1)    Unilateral Waiver.  Either you or we may, by written notice, unilaterally waive or reduce any obligation of or restriction on the other party under this Agreement.  The waiver or reduction may be revoked at any time for any reason on ten (10) days' written notice.

        (2)    No Guarantees.  If we give you any waiver, approval, consent or suggestion, or if we delay our response or deny any request for waiver, approval or consent, we will not be deemed to have made any warranties or guarantees on which you may rely and will not assume any liability or obligation to you.

        (3)    No Waiver.  If at any time we do not exercise a right available under this Agreement or do not insist on your compliance with the terms of the Agreement, or if a custom or practice develops which is inconsistent with this Agreement, we will not have waived the right to demand compliance with any of the terms of this Agreement at a later time.  Similarly, the waiver of any particular breach or series of breaches under this Agreement or of any term in any other agreement between you and us will not affect our rights with any later breach.  It will not be a waiver of any breach of this Agreement for us to accept payments, which are due to us under this Agreement.  Any agreement that we have, or any action that we take, with another Franchised Tupperware Distributorship will have no effect on our rights under this Agreement or any action we take with you.

        C.    CUMULATIVE REMEDIES.

        The rights and remedies that this Agreement grants to either party will not prohibit either party from exercising any other right or remedy provided under this Agreement or permitted by law or equity.

Page 24

_____________________________________________________________________________________________

        D.    WRITTEN CONSENTS FROM COMPANY.

        Whenever this Agreement requires our advance approval or consent, you agree to make a timely written request for it.  Our approval or consent will not be valid unless it is in writing.

        E.    COSTS AND ATTORNEYS' FEES.

        If we or any of our Affiliates incurs expenses due to your failure to comply with this Agreement or to pay any amounts due to us or our Affiliates, or for any other reason due to your actions or inactions, you agree to reimburse us and our Affiliates for any of the costs and expenses that we incur, including, without limitation, reasonable accounting, attorneys', arbitrators' and related fees.

        F.    GOVERNING LAW/CONSENT TO JURISDICTION.

        ALL MATTERS RELATING TO ARBITRATION WILL BE GOVERNED EXCLUSIVELY BY THE FEDERAL ARBITRATION ACT (9 U.S.C. SECTIONS 1 ET SEQ.).  EXCEPT TO THE EXTENT GOVERNED BY THE FEDERAL ARBITRATION ACT, THE UNITED STATES TRADEMARK ACT OF 1946 (LANHAM ACT, 15 U.S.C. SECTIONS 1051 ET SEQ.), OR OTHER FEDERAL LAW, THIS AGREEMENT, THE FRANCHISE AND THE RELATIONSHIP BETWEEN US AND YOU WILL BE GOVERNED BY THE LAWS OF THE  STATE OF FLORIDA, WITHOUT REGARD TO ITS CONFLICT OF LAWS PRINCIPLES, EXCEPT THAT ANY FLORIDA LAW REGULATING THE SALE OF FRANCHISES OR GOVERNING THE RELATIONSHIP OF A FRANCHISOR AND ITS FRANCHISEE WILL NOT APPLY UNLESS ITS JURISDICTIONAL REQUIREMENTS ARE MET INDEPENDENTLY WITHOUT REFERENCE TO THIS PARAGRAPH.

        YOU AGREE THAT WE MAY INSTITUTE ANY ACTION ARISING OUT OF OR RELATED TO THIS AGREEMENT OR OUR RELATIONSHIP THAT IS NOT REQUIRED TO BE ARBITRATED IN ANY STATE OR FEDERAL COURT OF GENERAL JURISDICTION IN THE STATE OF FLORIDA, AND YOU IRREVOCABLY SUBMIT TO THE JURISDICTION OF THOSE COURTS AND WAIVE ANY OBJECTION YOU MAY HAVE TO EITHER THE JURISDICTION OF OR VENUE IN THOSE COURTS.

        G.    BINDING EFFECT.

        This Agreement is binding on and will inure to the benefit of our successors and assigns and will be binding on and inure to the benefit of your permitted successors, assigns, heirs, executors and administrators.

        H.    ENTIRE AGREEMENT.

        This Agreement, including the introduction and exhibits to it, together with our Operating Manuals and other policies, constitutes the entire agreement between you and us, and there are 

Page 25

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no other oral or written understandings or agreements between you and us concerning the subject matter of this Agreement.  This Agreement may be modified only by a written agreement signed by both you and us.

        I.    NO LIABILITY TO OTHERS.

        We will not, because of this Agreement or any approvals, advice or services provided to you, be liable to any person or legal entity who is not a party to this Agreement, and no other party will have any rights because of this Agreement.

        J.    CONSTRUCTION.

        All headings of the various sections and paragraphs of this Agreement are for convenience only and do not affect the meaning or construction of any provision.  All references in this Agreement to masculine, neuter or singular usage will be construed to include the masculine, feminine, neuter or plural usages wherever applicable.  If two or more persons are the Franchisee, their obligations and liabilities under this Agreement will be joint and several, and the Franchisee will be deemed to be a general partnership.  A reference to "you" or "franchisee" includes each individual partner and the partnership.  Except where this Agreement expressly requires that we reasonably approve or not unreasonably withhold our approval of any of your actions or requests, we have the absolute right to refuse any of your requests or to withhold our approval of any of your actions or omissions.

        K.    MULTIPLE ORIGINALS.

        The parties may execute multiple copies of this Agreement, and each executed copy will be deemed an original.

        L.    INJUNCTIVE RELIEF.

        Notwithstanding anything to the contrary contained in Section 17.M., each party has the right in a proper case to seek temporary restraining orders and temporary or preliminary injunctive relief from a court of competent jurisdiction.  In that case, the parties will contemporaneously submit their dispute for arbitration on the merits according to Section 17.M.

        M.    ARBITRATION.

        EXCEPT FOR CLAIMS RELATING TO THE VALIDITY OR OWNERSHIP OF THE TRADEMARKS, AND EXCEPT AS WE MAY ELECT TO COLLECT AMOUNTS DUE UNDER ANY PROMISSORY NOTE IN A JUDICIAL PROCEEDING, ALL CONTROVERSIES, DISPUTES OR CLAIMS BETWEEN US (AND OUR AFFILIATES AND OUR RESPECTIVE SHAREHOLDERS, OFFICERS, DIRECTORS, AGENTS AND EMPLOYEES) AND YOU (YOUR OWNERS, AFFILIATES AND EMPLOYEES, IF APPLICABLE) ARISING OUT OF OR RELATED TO:

Page 26

_____________________________________________________________________________________________

        (a)    THIS AGREEMENT OR ANY OTHER AGREEMENT BETWEEN THE PARTIES OR ANY PROVISION OF ANY OF THESE AGREEMENTS;

        (b)    THE RELATIONSHIP OF THE PARTIES TO THIS AGREEMENT;

        (c)    THE VALIDITY OF THIS AGREEMENT OR ANY OTHER AGREEMENT BETWEEN THE PARTIES OR ANY PROVISION OF ANY OF THESE AGREEMENTS; OR

        (d)    ANY STANDARD, SPECIFICATION OR OPERATING PROCEDURE RELATING TO THE FRANCHISED DISTRIBUTORSHIP'S OPERATION 

MUST BE SUBMITTED FOR ARBITRATION.   ANY PARTY WITH A CLAIM SUBJECT TO ARBITRATION MUST NOTIFY THE OTHER PARTY IN WRITING OF THE CLAIM BEFORE SUBMITTING THE CLAIM FOR ARBITRATION TO ANY FORUM.  IF THE PARTIES HAVE NOT AGREED ON THE RESOLUTION OF THE DISPUTE WITHIN TEN (10) DAYS AFTER DELIVERY OF THE NOTICE, THE CLAIM MAY BE SUBMITTED FOR ARBITRATION ON DEMAND OF EITHER PARTY.  ANY AND ALL ARBITRATION PROCEEDINGS WILL BE GOVERNED BY THE PROVISIONS SET FORTH IN EXHIBIT D, WHICH IS A PART OF THIS AGREEMENT.

        N.    WAIVER OF PUNITIVE DAMAGES AND JURY TRIAL.

        EXCEPT FOR YOUR OBLIGATION TO INDEMNIFY US UNDER SECTION 6.D. AND CLAIMS WE BRING AGAINST YOU FOR YOUR UNAUTHORIZED USE OF THE MARKS OR UNAUTHORIZED USE OR DISCLOSURE OF ANY CONFIDENTIAL INFORMATION, WE AND YOU WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO OR CLAIM FOR ANY PUNITIVE OR EXEMPLARY DAMAGES AGAINST THE OTHER AND AGREE THAT, IN THE EVENT OF A DISPUTE BETWEEN US AND YOU, THE PARTY MAKING A CLAIM WILL BE LIMITED TO EQUITABLE RELIEF AND TO RECOVERY OF ANY ACTUAL DAMAGES IT SUSTAINS.

        WE AND YOU IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY, BROUGHT BY EITHER OF US.

        O.    SECURITY INTEREST.

        As security for your performing your obligations under this Agreement, including paying us or our Affiliates for purchases, you hereby grant us a security interest in: (1) all of the goods, equipment, inventory, accounts, accounts receivable, general intangibles (including, but not limited to, goodwill of the Franchised Distributorship), instruments, documents and chattel paper of the Franchised Distributorship, both presently owned and hereafter acquired; (2) all accessories, substitutions, additions, replacements, parts and accessions affixed to or used with 

Page 27

_____________________________________________________________________________________________

any of these; and (3) the products and proceeds of any and all of these.  You agree to execute any other documents we reasonably request to further document, perfect and record our security interest.  If you default on any of your obligations under this Agreement, we may exercise all rights of a secured creditor granted to us by law in addition to our other rights under this Agreement and applicable law.

        P.    NO WITHHOLDING PAYMENTS DUE TO US.

        You agree that you will not withhold payment of any amounts owed to us or our Affiliates on the grounds of our alleged nonperformance of any of our obligations under this Agreement or for any other reason whatsoever.

18.     NOTICES AND PAYMENTS.

        All written notices and reports permitted or required to be delivered by the provisions of this Agreement or the Operating Manuals will be deemed delivered at the earliest of the following times:  (a) the time delivered by hand, (b) one (1) business day after transmission by telegraph, telecopy or other electronic system or after placement with a commercial courier service for next business day delivery, or (c) three (3) business days after placement in the United States Mail by Registered or Certified Mail, Return Receipt Requested, postage prepaid.  All notices and reports must be addressed to the party to be notified at its most current principal business address of which the notifying party has been notified.  You agree to send all payments and required reports to us at any address(es) we designate to you in writing.  Any required payment or report which we do not actually receive at the correct address during regular business hours on the date due (or postmarked by postal authorities at least two (2) days before it is due) will be deemed delinquent.

19.     ACKNOWLEDGEMENTS.

        You acknowledge that you have received and have had the opportunity to review, for not less than ten (10) business days, a copy of our franchise offering circular describing certain information about us and the terms of the Tupperware Franchise Agreement.  You acknowledge that you have read this Agreement and our franchise offering circular and understand and accept the terms, conditions and covenants contained in this Agreement as being reasonably necessary to maintain our high standards of quality and service and the uniformity of those standards for all Franchised Tupperware Distributorships.  You acknowledge that you have conducted an independent investigation of the business venture contemplated by this Agreement and recognize that it involves business risks and that the venture's success is largely dependent upon your business abilities.  We have not made, and you acknowledge that you have not received or relied upon, any guarantee, express or implied, as to the revenue, profits or likelihood of success of the Franchised Distributorship.  You acknowledge that you have not received or relied on any representations about the Franchise or the Franchised Distributorship by us or our officers, directors, employees or agents that are contrary to the statements made in our franchise offering circular or the terms of this Agreement.

Page 28

_____________________________________________________________________________________________

        The parties to this Agreement now execute and deliver this Agreement as of the Agreement Date.

	
TUPPERWARE U.S., INC.,
	 	
                                                      

	
a Delaware corporation
	 	
FRANCHISEE (Print Name)

	 	 	
                                                       

	 	 	
FRANCHISEE (Signature)

	
By:                                                
	 	 
	
   Its:                                              
	 	 
	 	 	
                                                       

	 	 	
FRANCHISEE (Print Name)

	 	 	 
	 	 	
                                                       

	 	 	
FRANCHISEE (Signature)

Page 29

_____________________________________________________________________________________________

EXHIBIT A

TO THE FRANCHISE AGREEMENT

DATED ________________________ BY AND BETWEEN

TUPPERWARE U.S., INC.

AND ______________________________

The Primary Area of Promotion referred to in Section 1 of the Agreement is:

 

 

	
TUPPERWARE U.S., INC.,
	 	
                                                      

	
a Delaware corporation
	 	
FRANCHISEE (Print Name)

	 	 	
                                                       

	 	 	
FRANCHISEE (Signature)

	
By:                                                
	 	 
	
   Its:                                              
	 	 
	 	 	
                                                       

	 	 	
FRANCHISEE (Print Name)

	 	 	 
	 	 	
                                                       

	 	 	
FRANCHISEE (Signature)

Page A-1

_____________________________________________________________________________________________

EXHIBIT B

TO THE FRANCHISE AGREEMENT

DATED                        BY AND BETWEEN

TUPPERWARE U.S., INC.

AND ______________________________

 

The Premises are located at:

 

 

	
TUPPERWARE U.S., INC.,
	 	
                                                      

	
a Delaware corporation
	 	
FRANCHISEE (Print Name)

	 	 	
                                                       

	 	 	
FRANCHISEE (Signature)

	
By:                                                
	 	 
	
   Its:                                              
	 	 
	 	 	
                                                       

	 	 	
FRANCHISEE (Print Name)

	 	 	 
	 	 	
                                                       

	 	 	
FRANCHISEE (Signature)

Page B-1

_____________________________________________________________________________________________

EXHIBIT C

AGREEMENT FOR THE

DESIGNATION OF AN OPERATING COMPANY

        This Agreement is made and entered into this _____ day of _________________, 20__ by and among TUPPERWARE U.S., INC., a Delaware corporation ("Franchisor"),                                                                                          (collectively, "Owner") and _________________________________________________, a ____________________ corporation (the "Operating Company").

        1.    Recitals.  Franchisor and Owner entered into that certain TUPPERWARE Franchise Agreement dated __________________________,20__ (the "Franchise Agreement") for Owner to operate a Franchised TUPPERWARE Distributorship (the "Distributorship") from premises located at ____________________________________.  The Franchise Agreement is incorporated into and made a part of this Agreement.  Owner wishes to operate the Distributorship through the Operating Company.  Franchisor is willing to permit Owner to operate the Distributorship through the Operating Company on the conditions set forth in this Agreement.

        2.    Representations To Franchisor.  Owner and the Operating Company jointly and severally represent and warrant to Franchisor that now and at all times during the term of the Franchise Agreement:

	
(a)
	
Owner is and will be the owner of not less than seventy percent (70%) of the equity interests in the Operating Company;

	
(b)
	
Owner has and will have at least the percentage of voting power of the Operating Company's capital stock that may be required under applicable law and the articles of incorporation, bylaws and other documents relating to the Operating Company's governance to authorize a transfer of substantially all of the Operating Company's assets;

	
(c)
	
Owner has and will have the right and power to control the Operating Company and the Distributorship's operation and transfer;

	
(d)
	
Owner will be the Operating Company's chief executive and operating officers;

	
(e)
	
the Operating Company is duly incorporated and validly existing and is and will be duly authorized and qualified to do business and in good standing in each state in which it transacts business; and

	
(f)
	
the sole business the Operating Company will conduct will be the operation of the Distributorship.

Page C-1

_____________________________________________________________________________________________

        Owner and the Operating Company jointly and severally represent and warrant to Franchisor that Exhibit A to this Agreement is a complete and accurate description of certain information about the Operating Company and its shareholders, directors and officers.  Except to the extent that the Franchise Agreement restricts transfers of ownership interests in the Operating Company, Owner and the Operating Company agree to notify Franchisor in writing of any change in the information in Exhibit A not later than thirty (30) days after the change occurs.

        Owner and the Operating Company further represent and warrant to Franchisor that the only consideration that the Operating Company is giving Franchisor for the rights granted to the Operating Company is the Operating Company's agreement to assume and perform all of Owner's obligations under the Franchise Agreement.

        3.    Operation Solely by Operating Company.  Franchisor and Owner agree that the Distributorship will be operated solely by the Operating Company and no other person during the term of the Franchise Agreement.

        4.    Rights Retained Solely By Owner.  Owner and the Operating Company acknowledge and agree that Owner retains, and is the only person or entity who may exercise, all renewal rights under the Franchise Agreement.  The Operating Company has no rights under the Franchise Agreement concerning renewal.  If Franchisor and Owner renew the franchise by signing a new franchise agreement, as provided in subparagraph (b) of Section 14 of the Franchise Agreement, the Operating Company will have no further rights under this Agreement.  In order for the Operating Company to continue operating the Distributorship, the parties must execute a new agreement similar to this Agreement or on the form that Franchisor then requires for a corporation's operation of a Franchised TUPPERWARE Distributorship.

        5.    Liability Of Owner And The Operating Company.  The Operating Company hereby assumes, jointly and severally with Owner, all of Owner's liabilities now existing or hereafter arising under or relating to the Franchise Agreement or the operation of the Distributorship.  The Operating Company agrees to perform, observe and fulfill all of Owner's covenants and obligations as the franchisee under the Franchise Agreement and in any dealings with Franchisor or third parties relating to the Franchise Agreement, whether arising before or after the date of this Agreement.

        Owner acknowledges that this Agreement does not and will not relieve Owner of any of Owner's liabilities and obligations under the Franchise Agreement or the operation of the Distributorship, now existing or hereafter arising, including, but not limited to, payment for all goods and services the Operating Company orders from the Franchisor or its Affiliates.

Page C-2

_____________________________________________________________________________________________

        IN WITNESS WHEREOF the undersigned have executed this Agreement this _____ day of __________________, 20____.

 

	 	
OWNER:

	 	 
	 	
                                                                 

	 	
(Signature)

	 	 
	 	
                                                                 

	 	
(Print Name)

	 	 
	 	
                                                                

	 	
(Signature)

	 	 
	 	
                                                                

	 	
(Print Name)

	
TUPPERWARE U.S., INC.,

a Delaware corporation
	
OPERATING COMPANY:

	 	
                                                               

	
By:                                                     
	
a          corporation

	
   Its:                                                  
	 
	 	
                                                               

	 	
(Print Name)

	 	 
	 	
By:                                                          

	 	
Title:                                        

Page C-3

_____________________________________________________________________________________________

ATTACHMENT A

INFORMATION ABOUT THE OPERATING COMPANY

1.    NAME OF OPERATING COMPANY

Full name of operating company:                                                                                                              

State of incorporation:                                                                                                                             

Date of incorporation:                                                                                                                             

Other name(s) under which it conducts business:                                                                                       

                                                                                                                                                              

State in which qualified to do business:                                                                                                     

Name and address of Registered Agent in state of incorporation:                                                               

                                                                                                                                                            

2.    SHAREHOLDER INFORMATION

	

Name of Shareholder
	

Number of Shares Held*
	

Percentage Ownership

	

 
	
 

 
	
 

 

	
 

 
	
 

 
	
 

 

	
 

 
	
 

 
	
 

 

	
 

 
	
 

 
	
 

 

 

3.    DIRECTORS AND OFFICERS

	

Name of Director/Officer  
	

Position(s) Held

	

 
	
 

 

	
 

 
	
 

 

	
 

 
	
 

 

	
 

 
	
 

 

 

*If there is more than one class of stock, the information must reflect the kind of shares held.

_____________________________________________________________________________________________

EXHIBIT D

ARBITRATION

        ANY CONTROVERSY, DISPUTE OR CLAIM SUBMITTED FOR ARBITRATION MUST BE SUBMITTED FOR ARBITRATION TO THE ORLANDO, FLORIDA OFFICE OF THE AMERICAN ARBITRATION ASSOCIATION ON DEMAND OF EITHER PARTY.  THE ARBITRATION PROCEEDINGS WILL BE CONDUCTED UNDER THIS AGREEMENT IN ORLANDO, FLORIDA, OR ANY OTHER PLACE AS MAY BE MUTUALLY AGREED UPON BY THE PARTIES, AND HEARD IN ACCORDANCE WITH THE THEN CURRENT COMMERCIAL ARBITRATION RULES OF THE AMERICAN ARBITRATION ASSOCIATION, EXCEPT AS THESE RULES ARE MODIFIED BY THIS AGREEMENT.  ALL MATTERS WITHIN THE SCOPE OF THE FEDERAL ARBITRATION ACT (9 U.S.C. SECTIONS 1 ET SEQ.) WILL BE GOVERNED BY IT AND NOT BY ANY STATE ARBITRATION LAW.

        EXCEPT AS LIMITED BY THIS AGREEMENT, THE ARBITRATOR WILL HAVE THE RIGHT TO AWARD OR INCLUDE IN HIS OR HER AWARD ANY RELIEF WHICH HE OR SHE DEEMS PROPER IN THE CIRCUMSTANCES, INCLUDING, WITHOUT LIMITATION, MONEY DAMAGES (WITH INTEREST ON UNPAID AMOUNTS FROM THE DATE DUE), SPECIFIC PERFORMANCE, INJUNCTIVE RELIEF AND ATTORNEYS' FEES AND COSTS (ACCORDING TO SECTION 17.E. OF THIS AGREEMENT), PROVIDED THAT THE ARBITRATOR WILL NOT HAVE AUTHORITY TO AWARD EXEMPLARY OR PUNITIVE DAMAGES, EXCEPT AS PROVIDED IN SECTION 17.N., OR TO ORDER EITHER PARTY TO CONTINUE OR REINSTATE A RELATIONSHIP THAT HAS EXPIRED OR THAT THE OTHER PARTY HAS SOUGHT TO TERMINATE ACCORDING TO THE PROVISIONS OF THIS AGREEMENT AND ANY APPLICABLE LAW.  THE AWARD AND DECISION OF THE ARBITRATOR WILL BE CONCLUSIVE AND BINDING UPON ALL PARTIES, AND JUDGMENT UPON THE AWARD MAY BE ENTERED IN ANY COURT OF COMPETENT JURISDICTION.  THE PARTIES AGREE THAT, IN ARBITRATIONS UNDER THIS AGREEMENT, NO EVIDENCE OF ARBITRATION AWARDS IN OTHER CASES MAY BE INTRODUCED INTO EVIDENCE OR CONSIDERED BY THE ARBITRATOR.  THE PARTIES AGREE TO BE BOUND BY THE PROVISIONS OF ANY LIMITATION ON THE PERIOD OF TIME IN WHICH CLAIMS MUST BE BROUGHT UNDER APPLICABLE LAW.  THE PARTIES FURTHER AGREE THAT, IN ANY ARBITRATION PROCEEDING, EACH MUST SUBMIT OR FILE ANY CLAIM WHICH WOULD CONSTITUTE A COMPULSORY COUNTERCLAIM (AS DEFINED BY RULE 13 OF THE FEDERAL RULES OF CIVIL PROCEDURE) WITHIN THE SAME PROCEEDING AS THE CLAIM TO WHICH IT RELATES; OTHERWISE, THAT CLAIM WILL BE FOREVER BARRED.

Page D-1

_____________________________________________________________________________________________

        ARBITRATION UNDER THIS AGREEMENT MAY BE CONDUCTED ONLY ON AN INDIVIDUAL, AND NOT A CLASS-WIDE, BASIS.  AN ARBITRATION PROCEEDING BETWEEN THE PARTIES (INCLUDING OWNERS AND AFFILIATES AND OTHERS AS PROVIDED IN THIS PARAGRAPH) MAY NOT BE CONSOLIDATED WITH ANY OTHER ARBITRATION PROCEEDING INVOLVING THE COMPANY AND ANY OTHER PERSON.

        THE PROVISIONS OF THIS AGREEMENT CONCERNING ARBITRATION ARE INTENDED TO BENEFIT AND BIND CERTAIN THIRD PARTY NON-SIGNATORIES IDENTIFIED IN SECTION 17.M. AND WILL CONTINUE IN FULL FORCE AND EFFECT SUBSEQUENT TO AND NOTWITHSTANDING THE EXPIRATION OR TERMINATION OF THIS AGREEMENT.

	
TUPPERWARE U.S., INC.,
	 	
                                                      

	
a Delaware corporation
	 	
FRANCHISEE (Print Name)

	 	 	
                                                       

	 	 	
FRANCHISEE (Signature)

	
By:                                                
	 	 
	
   Its:                                              
	 	 
	 	 	
                                                       

	 	 	
FRANCHISEE (Print Name)

	 	 	 
	 	 	
                                                       

	 	 	
FRANCHISEE (Signature)

Page D-2

_____________________________________________________________________________________________

EXHIBIT E

TO THE FRANCHISE AGREEMENT

DATED

BY AND BETWEEN

TUPPERWARE U.S., INC.

AND

ANNUAL AND QUARTERLY PERFORMANCE CRITERIA

        You must demonstrate your ability to grow sales during each year of operation.  Your Franchised Distributorship's Estimated Retail Sales within the Primary Area of Promotion during the yearly period beginning                           , 20    and ending                        , 20     were $              .  You agree, as provided in Section 3 of the Agreement, to increase your Estimated Retail Sales within the Primary Area of Promotion over this amount by the first anniversary date of this Agreement.  If you do not satisfy this requirement, we will have the right, but not the obligation, to terminate the Agreement under Section 15.B.

        In addition, if at any time after the first anniversary date of this Agreement the growth in your Franchised Distributorship's Estimated Retail Sales within the Primary Area of Promotion during a three (3) month period falls ten percent (10%) or more below the average regional estimated retail sales growth during that same period, we have the right to give you a three (3) month period of business planning and coaching to help you improve your performance, defined as increased sales force recruiting and manager promoting within the Primary Area of Promotion, over the levels in the same three (3) month period during the previous calendar year.  If you fail by the end of this three (3) month period to increase sales force recruiting and manager promoting within the Primary Area of Promotion over the levels in the same three (3) month period during the previous calendar year, we will have the right, but not the obligation, to terminate the Franchise Agreement.  If you satisfy this performance criteria, we will give you additional coaching for a second three (3) month period to help you increase your Estimated Retail Sales within the Primary Area of Promotion, consistent with regional, area and national averages, over your levels of Estimated Retail Sales within the Primary Area of Promotion in the same three (3) month period during the previous calendar year.  We will measure sales performance using the consistent averages derived from the Tupperware Regional Weekly Sales Analysis, the Formula to Grow Sales and long and short term objectives.  If you do not satisfy this Estimated Retail Sales requirement within the Primary Area of Promotion by the end of the second three (3) month coaching period, we will have the right, but not the obligation, to terminate the Franchise Agreement.

	
TUPPERWARE U.S., INC.,
	 	
                                                      

	
a Delaware corporation
	 	
FRANCHISEE (Print Name)

	 	 	
                                                       

	 	 	
FRANCHISEE (Signature)

	
By:                                                
	 	 
	
   Its:                                              
	 	 
	 	 	
                                                       

	 	 	
FRANCHISEE (Print Name)

	 	 	 
	 	 	
                                                       

	 	 	
FRANCHISEE (Signature)<PAGE>
                                                                   EXHIBIT 10.12

                             LEASE AGREEMENT BETWEEN

                     W9/TIB REAL ESTATE LIMITED PARTNERSHIP,

                                AS LANDLORD, AND

                             VERISITY DESIGN, INC.,

                                    AS TENANT

                          DATED AS OF NOVEMBER 28, 2000

                           WESTBOROUGH, MASSACHUSETTS

<PAGE>

                             BASIC LEASE INFORMATION
                             -----------------------

Lease Date:             as of November 28, 2000.

Landlord:               W9/TIB REAL ESTATE LIMITED PARTNERSHIP, a Delaware
                        limited partnership.

Tenant:                 VERISITY DESIGN, INC., a California corporation.

Premises:               Suite No. 290, containing 3,158 rentable square feet,
                        in the building (the "Building") whose street address
                                              --------
                        is 1700 West Park Drive, Westborough, Massachusetts. The
                        Premises are shown cross-hatched on the plan attached to
                        the Lease as Exhibit A. The term "Building" includes the
                                     ---------
                        land (the "Land") on which the Building is located, and
                        the driveways, parking facilities, and similar
                        improvements located thereon.

Office Park:            The buildings whose street address are 1500 West Park
                        Drive, Westborough, Massachusetts, 1700 West Park
                        Drive, Westborough, Massachusetts, 1800 West Park Drive
                        Westborough, Massachusetts, 1900 West Park Drive,
                        Westborough, Massachusetts, and 2000 West Park Drive,
                        Westborough, Massachusetts, and the land on which such
                        buildings are located and all other buildings or
                        improvements now or hereafter located on such land. The
                        parcels of land which presently comprise the Office
                        Park (the "Office Park Land") "are described on Exhibit
                                   ----------------
                        B attached hereto.

Term:                   Approximately 60 months, commencing on the Commencement
                        Date and ending at 5:00 p.m. local time on the last day
                        of the 60th full calendar month following the
                        Commencement Date, subject to adjustment and earlier
                        termination as provided in the Lease.

Commencement Date:      The earliest of (a) the date on which Tenant occupies
                        any portion of the Premises and begins conducting
                        business therein, (b) the date on which the Work (as
                        defined in Exhibit D attached hereto) in the Premises
                                   ---------
                        is Substantially Completed (as defined in Exhibit D
                                                                  ---------
                        attached hereto), or (c) the date on which the Work in
                        the Premises would have been Substantially Completed but
                        for the occurrence of any Tenant Delay Days (as defined
                        in Exhibit D attached hereto).
                           ---------

Basic Rent:             Basic Rent shall be the following amounts for the
                        following periods of time:

                        Lease Month                         Monthly Basic Rent
                        -----------                         ------------------
                        1-12                                $7,895.00
                        13-24                               $8,131.85
                        25-36                               $8,376.60
                        37-48                               $8,626.60
                        49-60                               $8,884.51

                        As used herein, the term "Lease Month" shall mean each
                                                  -----------
                        calendar month during the Term (and if the Commencement
                        Date does not occur on the first day of a

                                       i

<PAGE>

                        calendar month, the period from the Commencement Date to
                        the first day of the next calendar month shall be
                        included in the first Lease Month for purposes of
                        determining the duration of the Term and the monthly
                        Basic Rent rate applicable for such partial month).

Security Deposit:       $189,480.00

Rent:                   Basic Rent, Tenant's Proportionate Share of Taxes and
                        Electrical Costs, Additional Rent, and all other sums
                        that Tenant may owe to Landlord or otherwise be
                        required to pay under the Lease.

Permitted Use:          General office use.

Tenant's Proportionate
Share:                  2.68%, which is the percentage obtained by dividing (a)
                        the number of rentable square feet in the Premises as
                        stated above by (b) 117,647, the number of rentable
                        square feet in the Building. Landlord and Tenant
                        stipulate that the number of rentable square feet in the
                        Premises and in the Building set forth above shall be
                        binding upon them.

Expense Stop:           Operating Costs per rentable square foot in the
                        Building for the calendar year 2000 (grossed up as
                        provided in Section 4.(b)(5) of the Lease).

Base Tax Year:          The fiscal year ending June 30, 2001.

Initial Liability

Insurance Amount: $2,000,000.00.
<TABLE>

  <S>             <C>                                             <C>

  Tenant's        For all Notices:                                With a copy to:
                  ---------------                                 --------------

  Address:        Verisity Design, Inc.                           Verisity Design, Inc.
                  1700 West Park Drive                            2040 Landings Drive
                  Westborough, Massachusetts 01581                Mountain View, California 94043
                  Attention: Office Manager                       Attention: David Larwood, General Counsel
                  Telephone:                                      Telephone: (650) 934-6810
                  Telecopy:                                       Telecopy: (650) 961-5300

  Landlord's      For all Notices:                                With a copy to:
                  ---------------                                 ---------------

  Address:        W9/TIB Real Estate Limited Partnership          W9/TIB Real Estate Limited Partnership
                  c/o Archon Group, L.P.                          c/o Archon Group, L.P.
                  1275 K Street, N.W., Suite 900                  600 East Las Colinas Blvd., Suite 400
                  Washington, D.C. 20005                          Irving, Texas 75039
                  Attention: Asset Manager                        Attention: General Counsel-1700 West
                  Telephone: (202) 216-5800                       Park Drive, Westborough, Massachusetts
                  Telecopy: (202) 216-5801                        Telephone: (972) 368-2200
                                                                  Telecopy: (972) 368-3199

</TABLE>

                                       ii

<PAGE>

The foregoing Basic Lease Information is incorporated into and made a part of
the Lease identified above. If any conflict exists between any Basic Lease
Information and the Lease, then the Lease shall control.

LANDLORD:                     W9/TIB REAL ESTATE LIMITED PARTNERSHIP,
                              a Delaware limited partnership

                              By: W9/TIB Gen-Par, Inc., a Delaware corporation,
                                  its general partner

                                  By:  /s/ S.M. Abelman
                                       -----------------

                                  Name:    Stephen M. Abelman
                                  Title:   Assistant Vice President

TENANT:                       VERISITY DESIGN, INC.,
                              a California corporation

                              By: /s/ David Larwood
                                  -----------------
                                  Name:    David Larwood
                                        -----------------
                                  Title:   General Counsel
                                        -----------------

                                       iii

<PAGE>

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

1.      DEFINITIONS AND BSIC PROVISIONS..................................... 1

2.      LEASE GRANT; COMMON AREAS........................................... 1

3.      TENDER OF POSSESSION................................................ 2

4.      RENT................................................................ 2
        (a) Payment......................................................... 2
        (b) Operating Costs; Taxes; Electrical Costs........................ 2

5.      DELINQUENT PAYMENT; HANDLING CHARGES................................ 4

6.      SECURITY DEPOSIT.................................................... 5

7.      LANDLORD'S OBLIGATIONS; UTILITIES................................... 5
        (a) Services........................................................ 5
        (b) Electricity..................................................... 6
        (c) Excess Utility Use.............................................. 6
        (d) Restoration of Services......................................... 7
        (e) Alternative Service Provider.................................... 7

8.      IMPROVEMENTS; ALTERATIONS; REPAIRS; MAINTENANCE..................... 7
        (a) Improvements; Alterations....................................... 7
        (b) Repairs; Maintenance............................................ 7
        (c) Performance of Work............................................. 8
        (d) Mechanic's Liens................................................ 8

9.      USE................................................................. 8

10.     ASSIGNMENT AND SUBLETTING........................................... 9
        (a) Transfers....................................................... 9
        (b) Consent Standards............................................... 9
        (c) Request for Consent............................................. 9
        (d) Conditions to Consent........................................... 9
        (e) Cancellation.................................................... 9
        (f) Additional Compensation........................................ 10
        (g) Permitted Transfers............................................ 10

11.     INSURANCE; WAIVERS; SUBROGATION; INDEMNITY......................... 11
        (a) Tenant's Insurance............................................. 11
        (b) Landlord's Insurance........................................... 11
        (c) No Subrogation................................................. 11
        (d) Indemnity...................................................... 11

12.     SUBORDINATION; ATTORNMENT; NOTICE TO LANDLORD'S MORTGAGEE.......... 12
        (a) Subordination.................................................. 12
        (b) Attornment..................................................... 12

                                       iv

<PAGE>

        (c) Notice to Landlord's Mortgagee.................................. 12
        (d) Landlord's Mortgagee's Protection Provisions.................... 12

13.     RULES AND REGULATIONS............................................... 13

14.     CONDEMNATION........................................................ 13
        (a) Total Taking.................................................... 13
        (b) Partial Taking - Tenant's Rights................................ 13
        (c) Partial Taking - Landlord's Rights.............................. 13
        (d) Award........................................................... 13

15.     FIRE OR OTHER CASUALTY.............................................. 14
        (a) Repair Estimate................................................. 14
        (b) Tenant's Rights................................................. 14
        (c) Landlord's Rights............................................... 14
        (d) Repair Obligation............................................... 14
        (e) Abatement of Rent............................................... 14

16.     PERSONAL PROPERTY TAXES............................................. 14

17.     EVENTS OF DEFAULT................................................... 15
        (a) Payment Default................................................. 15
        (b) Abandonment..................................................... 15
        (c) Estoppel........................................................ 15
        (d) Other Defaults.................................................. 15
        (e) Insolvency...................................................... 15

18.     REMEDIES............................................................ 15
        (a) Termination of Lease............................................ 15
        (b) Termination of Possession....................................... 16
        (c) Alteration of Locks............................................. 16

19.     PAYMENT BY TENANT; NON-WAIVER; CUMULATIVE REMEDIES.................. 16
        (a) Payment by Tenant............................................... 16
        (b) No Waiver....................................................... 16
        (c) Cumulative Remedies............................................. 17

20.     [INTENTIONALLY OMITTED]............................................. 17

21.     SURRENDER OF PREMISES............................................... 17

22.     HOLDING OVER........................................................ 18

23.     CERTAIN RIGHTS RESERVED BY LANDLORD................................. 18
        (a) Building Operations............................................. 18
        (b) Security........................................................ 18
        (c) Prospective Purchasers and Lenders.............................. 18
        (d) Prospective Tenants............................................. 18

                                       v

<PAGE>

24.     SUBSTITUTION SPACE................................................. 18

25.     MISCELLANEOUS...................................................... 19
        (a) Landlord Transfer.............................................. 19
        (b) Landlord's Liability........................................... 19
        (c) Force Majeure.................................................. 19
        (d) Brokerage...................................................... 19
        (e) Estoppel Certificates.......................................... 19
        (f) Notices........................................................ 19
        (g) Separability................................................... 19
        (h) Amendments; and Binding Effect................................. 20
        (i) Quiet Enjoyment................................................ 20
        (j) No Merger...................................................... 20
        (k) No Offer....................................................... 20
        (l) Entire Agreement............................................... 20
        (m) Waiver of Jury Trial........................................... 20
        (n) Governing Law.................................................. 20
        (o) Recording...................................................... 20
        (p) Joint and Several Liability.................................... 20
        (q) Financial Reports.............................................. 20
        (r) Landlord's Fees................................................ 21
        (s) Telecommunications............................................. 21
        (t) Confidentiality................................................ 21
        (u) Authority...................................................... 21
        (v) Hazardous Materials............................................ 22
        (w) List of Exhibits............................................... 22
        (x) Tenant's Identification Sign................................... 22

26.     OTHER PROVISIONS................................................... 23

                                       vi

<PAGE>

                                     LEASE

     THIS LEASE AGREEMENT (this "Lease") is entered into as of
                                 -----
November______,2000, between W9/TIB REAL ESTATE LIMITED PARTNERSHIP, a Delaware
limited partnership ("Landlord"), and VERISITY DESIGN, INC., a California
                      --------
corporation ("Tenant").
              ------

     1. Definitions and Basic Provisions. The definitions and basic provisions
        --------------------------------
set forth in the Basic Lease Information (the "Basic Lease Information")
                                               -----------------------
executed by Landlord and Tenant contemporaneously herewith are incorporated
herein by reference for all purposes. Additionally, the following terms shall
have the following meanings when used in this Lease: "Affiliate" means any
                                                      ---------
person or entity which, directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with the
party in question; "Building's Structure" means the Building's exterior walls,
                    --------------------
roof, elevator shafts, footings, foundations, structural portions of
load-bearing walls, structural floors and subfloors, and structural columns and
beams; "Building's Systems" means the Building's HVAC, life-safety, plumbing,
        ------------------
electrical, and mechanical systems; "including" means including, without
                                                      ---------
limitation; "Laws" means all federal, state, and local laws, rules and
             ----
regulations, all court orders, governmental directives, and governmental orders,
and all restrictive covenants affecting the Building, and "Law" shall mean any
                                                           ---
of the foregoing; and "Tenant Party" means any of the following persons: Tenant;
                       ------------
any assignees claiming by, through, or under Tenant; any subtenants claiming by,
through, or under Tenant; and any of their respective agents, contractors,
employees, and invitees.

     2. Lease Grant; Common Areas. Subject to the terms of this Lease, Landlord
        -------------------------
leases to Tenant, and Tenant leases from Landlord, the Premises.

     Tenant shall have the non-exclusive right during the Term to use the Common
                                                                          ------
Areas (as defined below) for itself, its employees, agents, customers, invitees
-----
and licensees. The phrase "Common Areas" as used herein shall mean the portions
of the Building which are from time to time designated and improved for common
use by or for the benefit of more than one tenant of the Building, including,
but not limited to, any of the following: the land and facilities used as
parking areas, access and perimeter roads, landscaping areas, exterior walks,
stairways, ramps, interior corridors, stairs, but excluding any portion thereof
when designated by Landlord for a non-common use. All Common Areas shall be
subject to the exclusive control and management of Landlord. Landlord shall have
the right to (i) to close, if necessary, all or any portion of the Common Areas
to such extent as may be legally necessary to prevent a dedication thereof or
the accrual of any rights of any person or of the public therein; (ii) to close
temporarily all or any portion of the Common Areas to discourage non-tenant use;
(iii) to use portions of the Common Areas while engaged in making additional
improvements or repairs or alterations to the Building; and (iv) to do and
perform such other acts in, to and with respect to the Common Areas as Landlord
shall determine to be appropriate for the Building. Landlord shall have the
right to increase the size of the Common Areas, including the expansion thereof
to adjacent property, to reduce the Common Area, to reconfigure the parking
spaces and improvements on the Common Areas, and to make such changes therein
and thereto from time to time which in Landlord's opinion are desirable and in
the best interests of all persons using the Common Areas. Any portion of the
Building not originally included within the Common Areas shall be so included if
and when so designated by Landlord for common use. Tenant shall use and shall
use reasonable efforts to cause its agents, employees, invitees, vendors,
suppliers and independent contractors to use such access roads and operate
trucks and trailers delivering merchandise to and from the Premises upon and
over such access roads as are designated by Landlord as a means of ingress to
and egress from the Premises. Landlord may establish a system or systems of
validation or other type of operation to control the parking areas within the
Common Areas. Nothing

                                       1

<PAGE>

contained in this Lease shall prohibit or otherwise restrict Landlord from
changing, from time to time, the location, layout or type of parking areas
within the Common Areas.

     3. Tender of Possession. Landlord and Tenant presently anticipate that
        --------------------
possession of the Premises will be tendered to Tenant (with the Work to be
performed by Landlord therein Substantially Completed) on or about January 1,
2001 (the "Estimated Delivery Date"). If Landlord is unable to tender possession
           -----------------------
of the Premises in such condition to Tenant by the Estimated Delivery Date, then
(a) Landlord shall not be in default hereunder or be liable for damages
therefor, and (b) Tenant shall accept possession of the Premises when Landlord
tenders possession thereof to Tenant. By occupying the Premises, Tenant shall be
deemed to have accepted the Premises in their condition as of the date of such
occupancy, subject to the performance of punch-list items that remain to be
performed by Landlord, if any. Tenant shall execute and deliver to Landlord,
within 10 days after Landlord has requested the same, a letter substantially in
the form of Exhibit E attached hereto confirming (1) the Commencement Date and
            ---------
the expiration date of the initial Term, (2) that Tenant has accepted the
Premises, and (3) that Landlord has performed all of its obligations with
respect to the Premises (except for punch-list items specified in such letter).
Occupancy of the Premises by Tenant prior to the Commencement Date shall be
subject to all of the provisions of this Lease excepting only those requiring
the payment of Basic Rent, Additional Rent, Taxes and Electrical Costs (each as
defined herein).

     Notwithstanding anything in this Lease to the contrary, if the Commencement
Date does not occur by the Deadline Delivery Date (as hereinafter defined), then
Tenant may terminate this Lease by written notice thereof to Landlord at any
time after the Deadline Delivery Date but prior to the Commencement Date. Such
right to terminate as provided in the preceding sentence shall be Tenant's sole
and exclusive remedy for any failure by Landlord to Substantially Complete (as
defined in Exhibit D attached hereto) by the Estimated Delivery Date or by any
           ---------
date thereafter. As used herein, the phrase "Deadline Delivery Date" shall mean
                                             ----------------------
April 1, 2001 plus the number of days thereafter equal to the number of Tenant
Delay Days.

     4. Rent.
        ----

        (a) Payment. Tenant shall timely pay to Landlord Rent, without notice,
            -------
demand, deduction or set off (except as otherwise expressly provided herein), at
Landlord's address provided for in this Lease or as otherwise specified by
Landlord and shall be accompanied by all applicable state and local sales or use
taxes. Basic Rent, adjusted as herein provided, shall be payable monthly in
advance. The monthly installment of Basic Rent for the first full calendar month
of the Term shall be payable contemporaneously with the execution of this Lease;
thereafter, Basic Rent shall be payable on the first day of each month beginning
on the first day of the second full calendar month of the Term. The monthly
Basic Rent for any partial month at the beginning of the Term shall equal the
product of 1/365 of the annual Basic Rent in effect during the partial month and
the number of days in the partial month from and after the Commencement Date,
and shall be due on the Commencement Date.

        (b) Operating Costs, Taxes; Electrical Costs.
            ----------------------------------------

            (1) Tenant shall pay to Landlord the amount (per each rentable
square foot in the Premises) ("Additional Rent") by which the annual Operating
                               ---------------
Costs (defined below) per rentable square foot in the Building exceed the
Expense Stop (per rentable square foot in the Building). Landlord may make a
good faith estimate of the Additional Rent to be due by Tenant for any calendar
year or part thereof during the Term. During each calendar year or partial
calendar year of the Term (after the base year, if the Expense Stop is
calculated on a base year basis), Tenant shall pay to Landlord, in advance
concurrently with each monthly installment of Basic Rent, an amount equal to the
estimated Additional

                                       2

<PAGE>

Rent for such calendar year or part thereof divided by the number of months
therein. From time to time, Landlord may reasonably estimate and re-estimate the
Additional Rent to be due by Tenant and deliver a copy of the estimate or
re-estimate to Tenant. Thereafter, the monthly installments of Additional Rent
payable by Tenant shall be appropriately adjusted in accordance with the
estimations so that, by the end of the calendar year in question, Tenant shall
have paid all of the Additional Rent as estimated by Landlord. Any amounts paid
based on such an estimate shall be subject to adjustment as herein provided when
actual Operating Costs are available for each calendar year.

            (2)  The term "Operating Costs" shall mean all expenses and
                           ---------------
disbursements (subject to the limitations set forth below) that Landlord incurs
in connection with the ownership, operation, and maintenance of the Building,
determined in accordance with sound accounting principles consistently applied,
including the following costs: (A) wages and salaries (including management
fees) of all on-site employees at or below the grade of senior building manager
engaged in the operation, maintenance or security of the Building (together with
Landlord's reasonable allocation of expenses of off-site employees at or below
the grade of senior building manager who perform a portion of their services in
connection with the operation, maintenance or security of the Building),
including taxes, insurance and benefits relating thereto; (B) all supplies and
materials used in the operation, maintenance, repair, replacement, and security
of the Building; (C) costs for improvements made to the Building which, although
capital in nature, are expected to reduce the normal operating costs (including
all utility costs) of the Building, as amortized using a commercially reasonable
interest rate over the time period reasonably estimated by Landlord to recover
the costs thereof taking into consideration the anticipated cost savings, as
determined by Landlord using its good faith, commercially reasonable judgment,
as well as capital improvements made in order to comply with any Law hereafter
promulgated by any governmental authority or any interpretation hereafter
rendered with respect to any existing Law, as amortized using a commercially
reasonable interest rate over the useful economic life of such improvements as
determined by Landlord in its reasonable discretion; (D) cost of all utilities,
except the cost of utilities reimbursable to Landlord by the Building's tenants
other than pursuant to a provision similar to this Section 4.(b); (E) insurance
expenses; (F) repairs, replacements, and general maintenance of the Building;
and (G) service or maintenance contracts with independent contractors for the
operation, maintenance, repair, replacement, or security of the Building
(including alarm service, window cleaning, and elevator maintenance).

     Operating Costs shall also include the Building's pro rata share of the
costs of operating, managing, maintaining and cleaning (including, without
limitation, snow and ice removal) the common areas and facilities of the Office
Park shared by the Building and other buildings in the Office Park, including,
without limitation, the costs of landscaping, insurance, security, snow
plowing/sanding; the cost of maintaining and repairing the entrance and side
roads and sidewalks within the Office Park, the drainage system, the Office Park
directory and signage, the irrigation system and the street lights; and the cost
of providing electricity to the street lights. The Building's pro rata share (as
referred to in the preceding sentence) shall be equal to a fraction, the
numerator of which is the total number of rentable square feet of floor area in
the Building and the denominator of which is the total number of rentable square
feet of floor area in all the buildings in the Office Park, from time to time.

     Operating Costs shall not include costs for (i) capital improvements made
to the Building, other than capital improvements described in Section 40)(2)(C)
and except for items which are generally considered maintenance and repair
items, such as painting of common areas, replacement of carpet in elevator
lobbies, and the like; (ii) repair, replacements and general maintenance paid by
proceeds of insurance or by Tenant or other third parties; (iii) interest,
amortization or other payments on loans to Landlord; (iv) depreciation; (v)
leasing commissions and marketing expenses; (vi) legal expenses for services,
other than those that benefit the Building tenants generally (e.g., tax
disputes); (vii) renovating or otherwise improving space for occupants of the
Building or vacant space in the Building; (viii) Taxes; (ix) federal or state
income taxes imposed on or measured by the income of Landlord from the operation
of

                                       3

<PAGE>

the Building; (x) environmental remediation, including the remediation of soils
and groundwater and the removal of underground storage tanks and asbestos; (xi)
fines and penalties assessed by a court or governmental agency; and (xii) costs
or expenses of services or supplies provided by Landlord or any person or entity
affiliated with Landlord to the extent such costs or expenses are in excess of
those that would be generally charged by non-affiliated parties in arms' length
transactions. If the Expense Stop is calculated on a base year basis, Operating
Costs for the base year only shall not include market-wide labor-rate increases
due to extraordinary circumstances, including boycotts and strikes; utility rate
increases due to extraordinary circumstances, including conservation surcharges,
boycotts, embargoes or other shortages; or amortized costs relating to capital
improvements.

            (3) Tenant shall also pay its Proportionate Share of any increase in
Taxes for each year and partial year falling within the Term over the Taxes for
the Base Tax Year. Tenant shall pay its Proportionate Share of Taxes in the same
manner as provided above for Additional Rent with regard to Operating Costs.
"Taxes" shall mean taxes, assessments, and governmental charges or fees
 -----
whether federal, state, county or municipal, and whether they be by taxing
districts or authorities presently taxing or by others, subsequently created or
otherwise, and any other taxes and assessments (including non-governmental
assessments for common charges under a restrictive covenant or other private
agreement that are not treated as part of Operating Costs) now or hereafter
attributable to the Building (or its operation), excluding, however, penalties
and interest thereon and federal and state taxes on income (if the present
method of taxation changes so that in lieu of the whole or any part of any
Taxes, there is levied on Landlord a capital tax directly on the rents received
therefrom or a franchise tax, assessment, or charge based, in whole or in part,
upon such rents for the Building, then all such taxes, assessments, or charges,
or the part thereof so based, shall be deemed to be included within the term
"Taxes" for purposes hereof). Taxes shall include the costs of consultants
retained in an effort to lower taxes and all costs incurred in disputing any
taxes or in seeking to lower the tax valuation of the Building. For property tax
purposes, Tenant waives all rights to protest or appeal the appraised value of
the Premises, as well as the Building, and all rights to receive notices of
reappraisement.

            (4)  By April 1 of each calendar year, or as soon thereafter as

practicable, Landlord shall furnish to Tenant a statement of Operating Costs for
the previous year, in each case adjusted as provided in Section 4.(b)(5), and of
the Taxes for the previous year (the "Operating Costs and Tax Statement"). If
                                      ---------------------------------
the Operating Costs and Tax Statement reveals that Tenant paid more for
Operating Costs than the actual amount for the year for which such statement was
prepared, or more than its actual share of Taxes for such year, then Landlord
shall promptly credit or reimburse Tenant for such excess; likewise, if Tenant
paid less than Tenant's actual Additional Rent or share of Taxes due, then
Tenant shall promptly pay Landlord such deficiency.

            (5) With respect to any calendar year or partial calendar year in
which the Building is not occupied to the extent of 95% of the rentable area
thereof, the Operating Costs for such period shall, for the purposes hereof, be
increased to the amount which would have been incurred had the Building been
occupied to the extent of 95% of the rentable area thereof.

     5.  Delinquent Payment; Handling Charges. All past due payments required of
         ------------------------------------
Tenant hereunder shall bear interest from the date due until paid at the lesser
of 18% per annum or the maximum lawful rate of interest; additionally, Landlord
may charge Tenant a fee equal to 5% of the delinquent payment to reimburse
Landlord for its cost and inconvenience incurred as a consequence of Tenant's
delinquency. In no event, however, shall the charges permitted under this
Section 5 or elsewhere in this Lease, to the extent they are considered to be
interest under applicable Law, exceed the maximum lawful rate of interest.
Notwithstanding the foregoing, the late fee referenced above shall not be
charged with respect to the first occurrence (but not any subsequent occurrence)
during any 12-month period that Tenant

                                       4

<PAGE>

fails to make payment when due, until 5 days after Landlord delivers written
notice of such delinquency to Tenant.

     6.  Security Deposit. Contemporaneously with the execution of this Lease,
         ----------------
Tenant shall pay to Landlord the Security Deposit, which shall be held by
Landlord to secure Tenant's performance of its obligations under this Lease. The
Security Deposit is not an advance payment of Rent or a measure or limit of
Landlord's damages upon an Event of Default (as defined herein). Landlord may,
from time to time following an Event of Default and without prejudice to any
other remedy, use all or a part of the Security Deposit to perform any
obligation Tenant fails to perform hereunder. Following any such application of
the Security Deposit, Tenant shall pay to Landlord, within 3 business days after
demand therefor, the amount so applied in order to restore the Security Deposit
to its original amount. Provided that Tenant has performed all of its
obligations hereunder, Landlord shall, within 30 days after the Term ends,
return to Tenant the portion of the Security Deposit which was not applied to
satisfy Tenant's obligations. The Security Deposit may be commingled with other
funds, and no interest shall be paid thereon. If Landlord transfers its interest
in the Premises and the transferee assumes Landlord's obligations under this
Lease, then Landlord may assign the Security Deposit to the transferee and
Landlord thereafter shall have no further liability for the return of the
Security Deposit.

     In lieu of a Security Deposit in immediately available funds, Tenant may
deliver to Landlord a standby, unconditional, irrevocable letter of credit in
the face amount of the Security Deposit, naming Landlord as beneficiary, issued
by any of the 5 largest national banking associations with banking offices in
Boston, Massachusetts, permitting partial draws thereon, and otherwise in the
form of Exhibit J attached hereto or another form acceptable to Landlord. Tenant
        ---------
shall from time to time cause its letter of credit to be renewed no later than
30 days prior to any expiration date thereof so that its letter of credit
remains in effect for 30 days after the scheduled expiration date of the Term or
any renewal Term; if Tenant fails timely to renew its letter of credit, then
Landlord shall have the right to draw thereon, and retain the amounts so drawn
as the Security Deposit. Landlord may, from time to time, following an Event of
Default and without prejudice to any other remedy, draw upon the letter of
credit and apply the proceeds thereof to perform any of Tenant's unperformed
obligations under this Lease. After any such draw and application, Tenant shall
pay to Landlord, within 3 business days after demand therefor, the amount so
drawn to be held as part of the Security Deposit. Tenant hereby irrevocably
appoints Landlord its true and lawful attorney-in-fact, such power of attorney
being coupled with an interest, with full power of substitution, to do any one
or more of the following in its sole discretion upon the occurrence of an Event
of Default under the Lease: (a) demand, collect, receive, sue for, compound and
give acquittance for any and all amounts which may be or become due or payable
with respect to the letter of credit and all funds evidenced thereby, (b)
execute any and all withdrawal receipts or others orders for the payment of
monies drawn from the letter of credit, (c) endorse the name of Tenant on all
commercial paper given in payment or in partial payment of the letter of credit,
(d) file any claim or institute any proceeding with respect to the letter of
credit, and (e) transfer the letter of credit into the name of Landlord or its
nominee. To further secure Tenant's obligations under the Lease, Tenant hereby
pledges to Landlord and grants to Landlord a security interest in, the letter of
credit, and all renewals and replacements thereof, and proceeds therefrom.

     7.  Landlord's Obligations; Utilities.
         ---------------------------------

         (a) Services. Landlord shall use all reasonable efforts to furnish to
             --------
Tenant: (1) water at all times and at those points of supply provided for
general use of tenants of the Building; (2) heated and refrigerated air
conditioning ("HVAC") as appropriate, at such temperatures and in such amounts
               ----
as are standard for comparable buildings in the vicinity of the Building; (3)
janitorial service to the Premises on weekdays, other than holidays, for
Building-standard installations and such window washing as may from

                                       5

<PAGE>

time to time be reasonably required; and (4) elevators at all times for ingress
and egress to the floor on which the Premises are located, in common with other
tenants, provided that Landlord may reasonably limit the number of operating
elevators during non-business hours and holidays. Landlord shall maintain the
common areas of the Building in reasonably good order and condition, except for
damage caused by a Tenant Party. If Tenant desires any of the services specified
in Section 7.(a)(2): (A) at any time other than between 8:00 a.m. and 5:30 p.m.
on weekdays (other than holidays), or (B) on Saturdays, Sundays or holidays,
then such services (i.e. after-hour HVAC services) shall be supplied to Tenant
upon the written request of Tenant delivered to Landlord before 3:00 p.m. on the
business day preceding such extra usage, and Tenant shall pay to Landlord the
cost of such services within 30 days after Landlord has delivered to Tenant an
invoice therefor. The costs incurred by Landlord in providing after-hour HVAC
service to Tenant shall include costs for electricity, water, sewage, water
treatment, labor, metering, filtering, and maintenance reasonably allocated by
Landlord to providing such service.

         (b) Electricity. Electricity for lights, plugs and heat pump shall be
             -----------
distributed to the Premises either by the electric utility company selected by
Landlord to provide electricity service for the Building or, at Landlord's
option, by Landlord; and Landlord shall permit Landlord's wires and conduits, to
the extent available, suitable and safely capable, to be used for such
distribution. If and so long as Landlord is distributing such electricity to the
Premises, Tenant shall obtain all of its electricity from Landlord and shall pay
all of Landlord's charges, which charges shall be based, at Landlord's option,
either on meter readings or on a survey of Tenant's electrical usage made by
Landlord or on Tenant's pro rata share of all space, including the Premises,
which is commonly metered with the Premises. If the electric utility company
selected by Landlord to provide electricity service for the Building is
distributing such electricity to the Premises, Tenant, at its cost, shall make
all necessary arrangements with such electric utility company for metering and
paying for electric current furnished to the Premises- All electricity used
during the performance of janitorial service, or the making of any alterations
or repairs in or to the Premises, or the operation of any special air
conditioning system serving the Premises, shall be paid by Tenant.

         (c) Excess Utility Use. Landlord shall not be required to furnish
             ------------------
electrical current for equipment that requires more than 110 volts or other
equipment whose electrical energy consumption exceeds normal office usage. If
Tenant's requirements for or consumption of electricity exceed the electricity
to be provided by Landlord as described in Section 7.(a), Landlord shall, at
Tenant's expense, make reasonable efforts to supply such service through the
then-existing feeders and risers serving the Building and the Premises, and
Tenant shall pay to Landlord the cost of such service within 30 days after
Landlord has delivered to Tenant an invoice therefor. Landlord may determine the
amount of such additional consumption and potential consumption by any
verifiable method, including installation of a separate meter in the Premises
installed, maintained, and read by Landlord, at Tenant's expense. Tenant shall
not install any electrical equipment requiring special wiring or requiring
voltage in excess of 110 volts or otherwise exceeding Building capacity unless
approved in advance by Landlord. The use of electricity in the Premises shall
not exceed the capacity of existing feeders and risers to or wiring in the
Premises. Any risers or wiring required to meet Tenant's excess electrical
requirements shall, upon Tenant's written request, be installed by Landlord, at
Tenant's cost, if, in Landlord's judgment, the same are necessary and shall not
cause permanent damage to the Building or the Premises, cause or create a
dangerous or hazardous condition, entail excessive or unreasonable alterations,
repairs, or expenses, or interfere with or disturb other tenants of the
Building. If Tenant uses machines or equipment in the Premises which affect the
temperature otherwise maintained by the air conditioning system or otherwise
overload any utility, Landlord may install supplemental air conditioning units
or other supplemental equipment in the Premises, and the cost thereof, including
the cost of installation, operation, use, and maintenance, shall be paid by
Tenant to Landlord within 30 days after Landlord has delivered to Tenant an
invoice therefor.

                                       6

<PAGE>

         (d) Restoration of Services. Landlord shall use reasonable efforts to
             -----------------------
restore any service required of it that becomes unavailable; however, such
unavailability shall not render Landlord liable for any damages caused thereby,
be a constructive eviction of Tenant, constitute a breach of any implied
warranty, or entitle Tenant to any abatement of Tenant's obligations hereunder.

         (e) Alternative Service Provider. Landlord has advised Tenant that
             ----------------------------
presently Massachusetts Electric Company (the "Electric Service Provider") is
                                               -------------------------
the electric utility company selected by Landlord to provide electricity service
for the Building. Notwithstanding the foregoing, Landlord reserves the right at
any time and from time to time before or during the Term to either contract for
electric service from a different company or companies providing electric
service (each such company shall hereinafter be referred to as an "Alternative
                                                                   -----------
Service Provider") or continue to contact for electricity service from the
----------------
Electric Service Provider. Tenant shall cooperate with Landlord, the Electric
Service Provider and any Alternative Service Provider at all times and, as
reasonably necessary, shall allow Landlord, the Electric Service Provider and
any Alternative Service Provider reasonable access to the Building's electric
lines, feeders, risers, wiring and other machinery within the Premises.

     8.  Improvements; Alterations; Repairs; Maintenance.
         -----------------------------------------------

         (a) Improvements; Alterations. Improvements to the Premises shall be
             -------------------------
installed at Tenant's expense only in accordance with plans and specifications
which have been previously submitted to and approved in writing by Landlord,
which approval shall be governed by standards in the following sentence. No
alterations or physical additions in or to the Premises may be made without
Landlord's prior written consent, which shall not be unreasonably withheld or
delayed; however, Landlord may withhold its consent to any alteration or
addition that would adversely affect (in the reasonable discretion of Landlord)
(1) the Building's Structure or the Building's Systems (including the Building's
restrooms or mechanical rooms), (2) the exterior appearance of the Building, or
(3) the appearance of the Building's common areas or elevator lobby areas.
Tenant shall not paint or install lighting or decorations, signs, window or door
lettering, or advertising media of any type on or about the Premises without the
prior written consent of Landlord, which shall not be unreasonably withheld or
delayed; however, Landlord may withhold its consent to any such painting or.
installation which would affect the appearance of the exterior of the Building
or of any common areas of the Building. All alterations, additions, and
improvements shall be constructed, maintained, and used by Tenant, at its risk
and expense, in accordance with all Laws; Landlord's consent to or approval of
any alterations, additions or improvements (or the plans therefor) shall not
constitute a representation or warranty by Landlord, nor Landlord's acceptance,
that the same comply with sound architectural and/or engineering practices or
with all applicable Laws, and Tenant shall be solely responsible for ensuring
all such compliance.

         (b) Repairs; Maintenance. Tenant shall maintain the Premises in a
             --------------------
clean, safe, and operable condition, and shall not permit or allow to remain any
waste or damage to any portion of the Premises. Tenant shall repair or replace,
subject to Landlord's direction and supervision, any damage to the Building
caused by a Tenant Party. If (1) Tenant fails to commence to make such repairs
or replacements within 15 days after the occurrence of such damage and
thereafter diligently pursues the completion thereof or (2) notwithstanding such
diligence, Tenant fails to complete such repairs or replacements within 30 days
after the occurrence of such damage, then Landlord may make the same at Tenant's
cost. If any such damage occurs outside of the Premises, then Landlord may elect
to repair such damage at Tenant's expense, rather than having Tenant repair such
damage. Subject to Section 11(c), the cost of all repair or replacement work
performed by Landlord under this Section 8 shall be paid by Tenant to Landlord
within 30 days after Landlord has invoiced Tenant therefor.

                                       7

<PAGE>

         (c) Performance of Work. All work described in this Section 8 shall be
             -------------------
performed only by Landlord or by contractors and subcontractors approved in
writing by Landlord, which approval shall not be unreasonably withheld or
delayed. Tenant shall cause all contractors and subcontractors to procure and
maintain insurance coverage naming Landlord as an additional insured against
such risks, in such amounts, and with such companies as Landlord may reasonably
require. All such work shall be performed in accordance with all Laws and in a
good and workmanlike manner so as not to damage the Building (including the
Premises, the Building's Structure and the Building's Systems). All such work
which may affect the Building's Structure or the Building's Systems must be
approved by the Building's engineer of record, at Tenant's expense and, at
Landlord's election, must be performed by Landlord's usual contractor for such
work. Tenant shall provide sworn statements, including the names, addresses and
copies of contracts for all contractors, and upon completion of any work shall
promptly furnish Landlord with sworn owner's and contractor's statements and
full and final waivers of lien covering all labor and materials included in the
work in question.

         (d) Mechanic's Liens. Tenant shall not permit any mechanic's liens to
             ----------------
be filed against the Premises or the Building for any work performed, materials
furnished, or obligation incurred by or at the request of Tenant. If such a lien
is filed, then Tenant shall, within 10 days after Landlord has delivered notice
of the filing thereof to Tenant (or such earlier time period as may be necessary
to prevent the forfeiture of the Building or any interest of Landlord therein or
the imposition of a civil or criminal fine with respect thereto), either (1) pay
the amount of the lien and cause the lien to be released. of record, or (2)
diligently contest such lien and deliver to Landlord a bond or other security
reasonably satisfactory to Landlord. If Tenant fails to timely take either such
action, then Landlord may pay the lien claim, and any amounts so paid, including
expenses and interest, shall be paid by Tenant to Landlord within ten days after
Landlord has invoiced Tenant therefor. All materialmen, contractors, artisans,
mechanics, laborers and any other persons now or hereafter contracting with
Tenant or any contractor or subcontractor of Tenant for the furnishing of any
labor, services, materials, supplies or equipment with respect to any portion of
the Premises, at any time from the date hereof until the end of the Term, are
hereby charged with notice that they look exclusively to Tenant to obtain
payment for same. Nothing herein shall be deemed a consent by Landlord to any
liens being placed upon the Building or Landlord's interest therein due to any
work performed by or for Tenant.

     9.  Use. Tenant shall occupy and use the Premises only for the Permitted
         ---
Use and shall comply with all Laws relating to the use, condition, access to,
and occupancy of the Premises. The population density within the Premises as a
whole shall at no time exceed one person for each 250 rentable square feet in
the Premises. Tenant shall not conduct second or third shift operations within
the Premises; however, Tenant may use the Premises after normal business hours,
so long as Tenant is not generally conducting business from the Premises after
normal business hours. As used in the preceding sentence, the phrase "after
normal business hours" shall mean "after 9:00 p.m. local time." The Premises
shall not be used for any use which is disreputable, creates extraordinary fire
hazards, or results in an increased rate of insurance on the Building or its
contents, or for the storage of any Hazardous Materials (other than typical
office supplies [e.g., photocopier toner] and then only in compliance with all
Laws). Tenant shall not use any substantial portion of the Premises for a "call
center," any other telemarketing use, or any credit processing use. If, because
of a Tenant Party's acts, the rate of insurance on the Building or its contents
increases, then Tenant shall pay to Landlord the amount of such increase on
demand, and acceptance of such payment shall not waive any of Landlord's other
rights. Tenant shall conduct its business and control each other Tenant Party so
as not to create any nuisance or unreasonably interfere with other tenants or
Landlord in its management of the Building.

                                        8

<PAGE>

     10. Assignment and Subletting.
         -------------------------

         (a) Transfers. Except as provided in Section 10.(g), Tenant shall not,
             ---------
without the prior written consent of Landlord, (1) assign, transfer, or encumber
this Lease or any estate or interest herein, whether directly or by operation of
law, (2) permit any other entity to become Tenant hereunder by merger,
consolidation, or other reorganization, (3) if Tenant is an entity other than a
corporation whose stock is publicly traded, permit the transfer of an ownership
interest in Tenant so as to result in a change in the current control of Tenant,
(4) sublet any portion of the Premises, (5) grant any license, concession, or
other right of occupancy of any portion of the Premises, or (6) permit the use
of the Premises by any parties other than Tenant (any of the events listed in
Section 10.(a)(1) through 10.(a)(6) being a "Transfer").
                                             --------

         (b) Consent Standards. Landlord shall not unreasonably withhold its
             -----------------
consent to any assignment or subletting of the Premises, provided that the
proposed transferee (A) is creditworthy, (B) has a good reputation in the
business community, (C) will use the Premises for the Permitted Use (thus,
excluding, without limitation, uses for credit processing and telemarketing) and
will not use the Premises in any manner that would conflict with any exclusive
use agreement or other similar agreement entered into by Landlord with any other
tenant of the Building, (D) is not a governmental entity, or subdivision or
agency thereof, and (E) is not another occupant of the Building or person or
entity with whom Landlord is negotiating to lease space in the Building;
otherwise, Landlord may withhold its consent in its sole discretion.

         (c) Request for Consent. If Tenant requests Landlord's consent to a
             -------------------
Transfer, then, at least 15 business days prior to the effective date of the
proposed Transfer, Tenant shall provide Landlord with a written description of
all terms and conditions of the proposed Transfer, copies of the proposed
documentation, and the following information about the proposed transferee: name
and address; reasonably satisfactory information about its business and business
history; its proposed use of the Premises; banking, financial, and other credit
information; and general references sufficient to enable Landlord to determine
the proposed transferee's creditworthiness and character. Concurrently with
Tenant's notice of any request for consent to a Transfer, Tenant shall pay to
Landlord a fee of $1,000 to defray Landlord's expenses in reviewing such
request, and Tenant shall also reimburse Landlord promptly after request for its
reasonable attorneys' fees incurred in connection with considering any request
for consent to a Transfer.

         (d) Conditions to Consent. If Landlord consents to a proposed Transfer,
             ---------------------
then the proposed transferee shall deliver to Landlord a written agreement
whereby it expressly assumes Tenant's obligations hereunder; however, any
transferee of less than all of the space in the Premises shall be liable only
for obligations under this Lease that are properly allocable to the space
subject to the Transfer for the period of the Transfer. No Transfer shall
release Tenant from its obligations under this Lease, but rather Tenant and its
transferee shall be jointly and severally liable therefor. Landlord's consent to
any Transfer shall not waive Landlord's rights as to any subsequent Transfers.
If an Event of Default occurs while the Premises or any part thereof are subject
to a Transfer, then Landlord, in addition to its other remedies, may collect
directly from such transferee all rents becoming due to Tenant and apply such
rents against Rent. Tenant authorizes its transferees to make payments of rent
directly to Landlord upon receipt of notice from Landlord to do so following the
occurrence of an Event of Default hereunder. Tenant shall pay for the cost of
any demising walls or other improvements necessitated by a proposed subletting
or assignment.

         (e) Cancellation. Landlord may, within 30 days after submission of
             ------------
Tenant's written request for Landlord's consent to an assignment or subletting,
cancel this Lease as to the portion of the Premises proposed to be sublet or
assigned as of the date the proposed Transfer is to be effective. If Landlord
cancels this Lease as to any portion of the Premises, then this Lease shall
cease for such portion of

                                       9

<PAGE>

the Premises and Tenant shall pay to Landlord all Rent accrued through the
cancellation date relating to the portion of the Premises covered by the
proposed Transfer. Thereafter, Landlord may lease such portion of the Premises
to the prospective transferee (or to any other person) without liability to
Tenant. Notwithstanding anything in this Section 10.(e) to the contrary, if an
assignment or subletting is a Permitted Transfer ( as hereinafter defined), then
Landlord shall not have the right to cancel this Lease as to the portion of the
Premises proposed to be sublet or assigned.

         (f) Additional Compensation. While no Event of Default exists, Tenant
             -----------------------
shall pay to Landlord, immediately upon receipt thereof, seventy-five percent
(75%) of the excess of (1) all compensation received by Tenant for a Transfer
less the costs reasonably incurred by Tenant with unaffiliated third parties in
connection with such Transfer (i.e., brokerage commissions, tenant finish work,
and the like) over (2) the Rent allocable to the portion of the Premises covered
thereby. While any Event of Default exists, Tenant shall pay to Landlord,
immediately upon receipt thereof, one hundred percent (100%) of the excess of
(A) all compensation received by Tenant for a Transfer over (B) the Rent
allocable to the portion of the Premises covered thereby.

         (g) Permitted Transfers. Notwithstanding Section 10.(a), Tenant may
             -------------------
Transfer all or part of its interest in this Lease or all or part of the
Premises (a "Permitted Transfer") to the following types of entities (a
             ------------------
"Permitted Transferee") without the written consent of Landlord:
 --------------------

             (1) an Affiliate of Tenant;

             (2) any corporation, limited partnership, limited liability
     partnership, limited liability company or other business entity in which or
     with which Tenant, or its corporate successors or assigns, is merged or
     consolidated, in accordance with applicable statutory provisions governing
     merger and consolidation of business entities, so long as (A) Tenant's
     obligations hereunder are assumed by the entity surviving such merger or
     created by such consolidation; and (B) the Tangible Net Worth of the
     surviving or created entity is not less than the Tangible Net Worth of
     Tenant as of the date hereof, or

             (3) any corporation, limited partnership, limited liability
     partnership, limited liability company or other business entity acquiring
     all or substantially all of Tenant's assets if such entity's Tangible Net
     Worth after such acquisition is not less than the Tangible Net Worth of
     Tenant as of the date hereof.

Tenant shall promptly notify Landlord of any such Permitted Transfer. Tenant
shall remain liable for the performance of all of the obligations of Tenant
hereunder, or if Tenant no longer exists because of a merger, consolidation, or
acquisition, the surviving or acquiring entity shall expressly assume in writing
the obligations of Tenant hereunder. Additionally, the Permitted Transferee
shall comply with all of the terms and conditions of this Lease, including the
Permitted Use, and the use of the Premises by the Permitted Transferee may not
violate any other agreements affecting the Premises, the Building, Landlord or
other tenants of the Building. At least 30 days after the effective date of any
Permitted Transfer, Tenant agrees to furnish Landlord with copies of the
instrument effecting any of the foregoing Transfers and documentation
establishing Tenant's satisfaction of the requirements set forth above
applicable to any such Transfer. The occurrence of a Permitted Transfer shall
not waive Landlord's rights as to any subsequent Transfers. "Tangible Net Worth"
                                                             ------------------
means the excess of total assets over total liabilities, in each case as
determined in accordance with generally accepted accounting principles
consistently applied ("GAAP"), excluding, however, from the determination of
                       ----
total assets all assets which would be classified as intangible assets under
GAAP including goodwill, licenses, patents, trademarks, trade names, copyrights,
and franchises. Any subsequent Transfer by a Permitted Transferee shall be
subject to the terms of this Section 10.

                                       10

<PAGE>

     11. Insurance; Waivers; Subrogation; Indemnity.
         ------------------------------------------

         (a) Tenant's Insurance. Tenant shall maintain throughout the Term the
             ------------------
following insurance policies: (1) commercial general liability insurance in
amounts of $2,000,000.00 per occurrence or, following the expiration of the
initial Term, such other amounts as Landlord may from time to time reasonably
require (and, if the use and occupancy of the Premises include any activity or
matter that is or may be excluded from coverage under a commercial general
liability policy [e.g., the sale, service or consumption of alcoholic
beverages], Tenant shall obtain such endorsements to the commercial general
liability policy or otherwise obtain insurance to insure all liability arising
from such activity or matter [including liquor liability, if applicable] in such
amounts as Landlord may reasonably require), insuring Tenant, Landlord,
Landlord's agents and their respective Affiliates against all liability for
injury to or death of a person or persons or damage to property arising from the
use and occupancy of the Premises, (2) insurance covering the full value of
Tenant's property and improvements, and other property (including property of
others) in the Premises, (3) contractual liability insurance sufficient to cover
Tenant's indemnity obligations hereunder (but only if such contractual liability
insurance is not already included in Tenant's commercial general liability
insurance policy), (4) worker's compensation insurance, and (5) business
interruption insurance. Tenant's liability insurance shall provide primary
coverage to Landlord when any policy issued to Landlord provides duplicate or
similar coverage, and in such circumstance Landlord's policy will be excess over
Tenant's policy. Tenant shall furnish to Landlord certificates of such insurance
and such other evidence satisfactory to Landlord of the maintenance of all
insurance coverages required hereunder, and Tenant shall obtain a written
obligation on the part of each insurance company to notify Landlord at least 30
days before cancellation or a material change of any such insurance policies.
All such insurance policies shall be in form, and issued by companies,
reasonably satisfactory to Landlord.

         (b) Landlord's Insurance. Throughout the Term of this Lease, Landlord
             --------------------
shall maintain, as a minimum, the following insurance policies: (1) fire and
extended risk insurance for the Building's replacement value and (2) commercial
general liability insurance in an amount of not less than $3,000,000.00. The
cost of all insurance carried by Landlord with respect to the Building shall be
included in Operating Costs. The foregoing insurance policies and any other
insurance carried by Landlord shall be for the sole benefit of Landlord and
under Landlord's sole control, and Tenant shall have no right or claim to any
proceeds thereof or any other rights thereunder.

         (c) No Subrogation. Landlord and Tenant each waives any claim it might
             --------------
have against the other for any injury to or death of any person or persons or
damage to or theft, destruction, loss, or loss of use of any property (a
"Loss"), to the extent the same is insured against under any insurance policy
 ----
that covers the Building, the Premises, Landlord's or Tenant's fixtures,
personal property, leasehold improvements, or business, or is required to be
insured against under the terms hereof, regardless of whether the negligence of
the other party caused such Loss. Each party shall cause its insurance carrier
to endorse all applicable policies waiving the carrier's rights of recovery
under subrogation or otherwise against the other party.

         (d) Indemnity. Subject to Section 11.(c), Tenant shall defend,
             ---------
indemnify, and hold harmless Landlord and its representatives and agents from
and against all claims, demands, liabilities, causes of action, suits,
judgments, damages, and expenses (including reasonable attorneys' fees) arising
from (1) any Loss arising from any occurrence on the Premises, except to the
extent caused by the negligence or fault of Landlord or its agents, or (2)
Tenant's failure to perform its obligations under this Lease. Subject to Section
11.(c), Landlord shall defend, indemnify, and hold harmless Tenant and its
agents from and against all claims, demands, liabilities, causes of action,
suits, judgments, and expenses (including reasonable attorneys' fees) for any
Loss arising from any occurrence in the Building's common areas,

                                       11

<PAGE>

except to the extent caused by the negligence or fault of Tenant or its agents.
The indemnities set forth in this Section 11. (d) shall survive termination or
expiration of this Lease and shall not terminate or be waived, diminished or
affected in any manner by any abatement or apportionment of Rent under any
provision of this Lease. If any proceeding is filed for which indemnity is
required hereunder, the indemnifying party agrees, upon request therefor, to
defend the indemnified party in such proceeding at its sole cost utilizing
counsel satisfactory to the indemnified party.

     12. Subordination: Attornment; Notice to Landlord's Mortgagee.
         ---------------------------------------------------------

         (a) Subordination. This Lease shall be subordinate to any deed of
             -------------
trust, mortgage, or other security instrument (each, a "Mortgage"), or any
                                                        --------
ground lease, master lease, or primary lease (each, a "Primary Lease"), that now
                                                       -------------
or hereafter covers all or any part of the Premises (the mortgagee under any
such Mortgage, beneficiary under any such deed of trust, or the lessor under any
such Primary Lease is referred to herein as a "Landlord's Mortgagee"). Landlord
                                               --------------------
shall use reasonable efforts to obtain a subordination, non-disturbance and
attornment agreement from the then current Landlord's Mortgagee; however,
Landlord's failure to deliver such subordination, non-disturbance and attornment
agreement shall not constitute a default by Landlord hereunder nor affect the
subordination of this Lease as provided in this Section 12.(a); and further
provided that any costs associated with obtaining such subordination,
non-disturbance and attornment agreement shall be paid by Tenant within 15 days
after Landlord's written request therefor. Any Landlord's Mortgagee may elect,
at any time, unilaterally, to make this Lease superior to its Mortgage, Primary
Lease, or other interest in the Premises by so notifying Tenant in writing. The
provisions of this Section shall be self-operative and no further instrument of
subordination shall be required; however, in confirmation of such subordination,
Tenant shall execute and return to Landlord (or such other party designated by
Landlord) within ten days after written request therefor such documentation, in
recordable form if required, as a Landlord's Mortgagee may reasonably request to
evidence the subordination of this Lease to such Landlord's Mortgagee's Mortgage
or Primary Lease (including a subordination, non-disturbance and attornment
agreement) or, if the Landlord's Mortgagee so elects, the subordination of such
Landlord's Mortgagee's Mortgage or Primary Lease to this Lease.

         (b) Attornment. Tenant shall attorn to any party succeeding to
             ----------
Landlord's interest in the Premises, whether by purchase, foreclosure, deed in
lieu of foreclosure, power of sale, termination of lease, or otherwise, upon
such party's request, and shall execute such agreements confirming such
attornment as such party may reasonably request.

         (c) Notice to Landlord's Mortgagee. Tenant shall not seek to enforce
             ------------------------------
any remedy it may have for any default on the part of Landlord without first
giving written notice by certified mail, return receipt requested, specifying
the default in reasonable detail, to any Landlord's Mortgagee whose address has
been given to Tenant, and affording such Landlord's Mortgagee a reasonable
opportunity to perform Landlord's obligations hereunder.

         (d) Landlord's Mortgagee's Protection Provisions. If Landlord's
             --------------------------------------------
Mortgagee shall succeed to the interest of Landlord under this Lease, Landlord's
Mortgagee shall not be: (1) liable for any act or omission of any prior lessor
(including Landlord); (2) bound by any rent or additional rent or advance rent
which Tenant might have paid for more than the current month to any prior lessor
(including Landlord), and all such rent shall remain due and owing,
notwithstanding such advance payment; (3) bound by any security or advance
rental deposit made by Tenant which is not delivered or paid over to Landlord's
Mortgagee and with respect to which Tenant shall look solely to Landlord for
refund or reimbursement; (4) bound by any termination, amendment or modification
of this Lease made without Landlord's Mortgagee's consent and written approval,
except for those terminations, amendments and modifications

                                       12

<PAGE>

permitted to be made by Landlord without Landlord's Mortgagee's consent pursuant
to the terms of the loan documents between Landlord and Landlord's Mortgagee and
except for those terminations permitted to be made by Landlord or Tenant
pursuant to the terms and provisions of this Lease; (5) subject to the defenses
which Tenant might have against any prior lessor (including Landlord); and (6)
subject to the offsets which Tenant might have against any prior lessor
(including Landlord) except for those offset rights which (A) are expressly
provided in this Lease, (B) relate to periods of time following the acquisition
of the Building by Landlord's Mortgagee, and (C) Tenant has provided written
notice to Landlord's Mortgagee and provided Landlord's Mortgagee a reasonable
opportunity to cure the event giving rise to such offset event. Landlord's
Mortgagee shall have no liability or responsibility under or pursuant to the
terms of this Lease or otherwise after it ceases to own an interest in the
Building. Nothing in this Lease shall be construed to require Landlord's
Mortgagee to see to the application of the proceeds of any loan, and Tenant's
agreements set forth herein shall not be impaired on account of any modification
of the documents evidencing and securing any loan.

     13. Rules and Regulations. Tenant shall comply with the rules and
         ---------------------
regulations of the Building which are attached hereto as Exhibit C. Landlord
                                                         ---------
may, from time to time, change such rules and regulations for the safety, care,
or cleanliness of the Building and related facilities, provided that such
changes are applicable to all tenants of the Building, will not unreasonably
interfere with Tenant's use of the Premises and are enforced by Landlord in a
non-discriminatory manner. Tenant shall be responsible for the compliance with
such rules and regulations by each Tenant Party.

     14. Condemnation.
         ------------

         (a) Total Taking. If the entire Building or Premises are taken by right
             ------------
of eminent domain or conveyed in lieu thereof (a "Taking"), this Lease shall
terminate as of the date: of the Taking.          ------

         (b) Partial Taking - Tenant's Rights. If any part of the Building
             --------------------------------
becomes subject to a Taking and such Taking will prevent Tenant from conducting
its business in the Premises in a manner reasonably comparable to that conducted
immediately before such Taking for a period of more than 180 days, then Tenant
may terminate this Lease as of the date of such Taking by giving written notice
to Landlord within 30 days after the Taking, and Basic Rent and Additional Rent
shall be apportioned as of the date of such Taking. If Tenant does not terminate
this Lease, then Rent shall be abated on a reasonable basis as to that portion
of the Premises rendered untenantable by the Taking.

         (c) Partial Taking - Landlord's Rights. If any material portion, but
             ----------------------------------
less than all, of the Building becomes subject to a Taking, or if Landlord is
required to pay any of the proceeds arising from a Taking to a Landlord's
Mortgagee, then Landlord may terminate this Lease by delivering written notice
thereof to Tenant within 30 days after such Taking, and Basic Rent and
Additional Rent shall be apportioned as of the date of such Taking. If Landlord
does not so terminate this Lease, then this Lease will continue, but if any
portion of the Premises has been taken, Rent shall abate as provided in the last
sentence of Section 14.(b).

         (d) Award. If any Taking occurs, then Landlord shall receive the entire
             -----
award or other compensation for the Land, the Building, and other improvements
taken; however, Tenant may separately pursue a claim (to the extent it will not
reduce Landlord's award) against the condemnor for the value of Tenant's
personal property which Tenant is entitled to remove under this Lease, moving
costs, loss of business, and other claims it may have.

                                       13

<PAGE>

     15. Fire or Other Casualty.
         -------

         (a) Repair Estimate. If the Premises or the Building are damaged by
             ---------------
fire or other casualty (a "Casualty"), Landlord shall, within 75 days after such
                           --------
Casualty, deliver to Tenant a good faith estimate (the "Damage Notice") of the
                                                        -------------
time needed to repair the damage caused by such Casualty.

         (b) Tenant's Rights. If a material portion of the Premises is damaged
             ---------------
by Casualty such that Tenant is prevented from conducting its business in the
Premises in a manner reasonably comparable to that conducted immediately before
such Casualty and Landlord estimates that the damage caused thereby cannot be
repaired within 270 days after the Casualty (the "Repair Period"), then Tenant
                                                  -------------
may terminate this Lease by delivering written notice to Landlord of its
election to terminate within 30 days after the Damage Notice has been delivered
to Tenant.

         (c) Landlord's Rights. If a Casualty damages the Premises or a material
             -----------------
portion of the Building and (1) Landlord estimates that the damage to the
Premises cannot be repaired within the Repair Period, (2) the damage to the
Premises exceeds 50% of the replacement cost thereof (excluding foundations and
footings), as estimated by Landlord, and such damage occurs during the last two
years of the Term, (3) regardless of the extent of damage to the Premises,
Landlord makes a good faith determination that restoring the Building would be
uneconomical, or (4) Landlord is required to pay any insurance proceeds arising
out of the Casualty to a Landlord's Mortgagee, then Landlord may terminate this
Lease by giving written notice of its election to terminate within 30 days after
the Damage Notice has been delivered to Tenant.

         (d) Repair Obligation. If neither party elects to terminate this Lease
             -----------------
following a Casualty, then Landlord shall, within a reasonable time after such
Casualty, begin to repair the Premises and shall proceed with reasonable
diligence to restore the Premises to substantially the same condition as they
existed immediately before such Casualty; however, Landlord shall only be
required to reconstruct the Premises to the extent of any improvements existing
therein on the date of the damage that were installed by Landlord as part of the
Work (if any) pursuant to Exhibit D ("Landlord's Contribution"), and Landlord's
                          ---------   -----------------------
obligation to repair or restore the Premises shall be limited to the extent of
the insurance proceeds actually received by Landlord for the Casualty in
question. Tenant shall be responsible for repairing or replacing its furniture,
equipment, fixtures, alterations and other improvements which Landlord is not
obligated to restore, and shall use the proceeds of its insurance for such
purpose. Tenant shall pay the difference between the total cost of
reconstructing the Premises and Landlord's Contribution ("Tenant's
                                                          --------
Contribution"). Prior to Landlord's commencement of reconstruction, Tenant shall
------------
place Landlord's estimate of Tenant's Contribution in escrow with Landlord (or
furnish Landlord other commercially reasonable assurances of payment thereof).

          (e) Abatement of Rent. If the Premises are damaged by Casualty, Rent
              -----------------
for the portion of the Premises rendered untenantable by the damage shall be
abated on a reasonable basis from the date of damage until the completion of
Landlord's repairs (or until the date of termination of this Lease by Landlord
or Tenant as provided above, as the case may be), unless a Tenant Party caused
such damage, in which case, Tenant shall continue to pay Rent without abatement.

     16. Personal Property Taxes. Tenant shall be liable for all taxes levied or
         -----------------------
assessed against personal property, furniture, or fixtures placed by Tenant in
the Premises. If any taxes for which Tenant is liable are levied or assessed
against Landlord or Landlord's property and Landlord elects to pay the same, or
if the assessed value of Landlord's property is increased by inclusion of such
personal property, furniture or fixtures and Landlord elects to pay the taxes
based on such increase, then Tenant shall pay to Landlord,

                                       14

<PAGE>

within 30 days following written request, the part of such taxes for which
Tenant is primarily liable hereunder; however, Landlord shall not pay such
amount if Tenant notifies Landlord that it will contest the validity or amount
of such taxes before Landlord makes such payment, and thereafter diligently
proceeds with such contest in accordance with Law and if the non-payment thereof
does not pose a threat of loss or seizure of the Building or interest of
Landlord therein or impose any fee or penalty against Landlord.

     17. Events of Default. Each of the following occurrences shall be an "Event
         -----------------
of Default":

         (a) Payment Default. Tenant's failure to pay Rent within 5 days after
             ---------------
Landlord has delivered written notice to Tenant that the same is due; however,
an Event of Default shall occur hereunder without any obligation of Landlord to
give any notice if Tenant fails to pay Rent when due and, during the 12 month
interval preceding such failure, Landlord has given Tenant written notice of
failure to pay Rent on one or more occasions;

         (b) Abandonment. Tenant abandons the Premises or any substantial
             -----------
portion thereof or Tenant fails to operate its business in the Premises for 60
consecutive days;

         (c) Estoppel. Tenant fails to provide any estoppel certificate after
             --------
Landlord's written request therefor pursuant to Section 25.(e) and such failure
shall continue for 5 days after Landlord's second written notice thereof to
Tenant;

         (d) Other Defaults. Tenant's failure to perform, comply with, or
             --------------
observe any other agreement or obligation of Tenant under this Lease and the
continuance of such failure for a period of more than 30 days after Landlord has
delivered to Tenant written notice thereof, however, if such failure cannot be
cured within such 30 day period (thus excluding, for example, Tenant's
obligation to provide Landlord evidence of Tenant's insurance coverage) and
Tenant commences to cure such failure within such 30 day period and thereafter
diligently pursues such cure to completion, then such failure shall not be an
Event of Default unless it is not fully cured within an additional 30 days after
the expiration of the 30 day period; and

         (e) Insolvency. The filing of a petition by or against Tenant (the term
             ----------
"Tenant" shall include, for the purpose of this Section 17.(e), any guarantor of
 ------
Tenant's obligations hereunder) (1) in any bankruptcy or other insolvency
proceeding; (2) seeking any relief under any state or federal debtor relief law;
(3) for the appointment of a liquidator or receiver for all or substantially all
of Tenant's property or for Tenant's interest in this Lease; or (4) for the
reorganization or modification of Tenant's capital structure; however, if such a
petition is filed against Tenant, then such filing shall not be an Event of
Default unless Tenant fails to have the proceedings initiated by such petition
dismissed within 90 days after the filing thereof.

     18. Remedies. Upon any Event of Default, Landlord may, in addition to all
         --------
other rights and remedies afforded Landlord hereunder or by law or equity, take
any one or more of the following actions:

         (a) Termination of Lease. Terminate this Lease by giving Tenant written
             --------------------
notice thereof, in which event Tenant shall pay to Landlord the sum of (1) all
Rent accrued hereunder through the date of termination, (2) all amounts due
under Section 19.(a), and (3) an amount equal to (A) the total Rent that Tenant
would have been required to pay for the remainder of the Term plus Landlord's
estimate of aggregate expenses of reletting the Premises, minus (B) the then
present fair rental rate value of the Premises for such period;

                                       15

<PAGE>

         (b) Termination of Possession. Terminate Tenant's right to possess the
             -------------------------
Premises without terminating this Lease by giving written notice thereof to
Tenant, in which event Tenant shall pay to Landlord (1) all Rent and other
amounts accrued hereunder to the date of termination of possession, (2) all
amounts due from time to time under Section 19.(a), and (3) all Rent and other
net sums required hereunder to be paid by Tenant during the remainder of the
Term, diminished by any net sums thereafter received by Landlord through
reletting the Premises during such period, after deducting all costs incurred by
Landlord in reletting the Premises. If Landlord elects to proceed under this
Section 18.(b), Landlord may remove all of Tenant's property from the Premises
and store the same in a public warehouse or elsewhere at the cost of, and for
the account of, Tenant, without becoming liable for any loss or damage which may
be occasioned thereby. Landlord shall use reasonable efforts to relet the
Premises on such terms as Landlord in its sole discretion may determine
(including a term different from the Term, rental concessions, and alterations
to, and improvement of, the Premises); however, Landlord shall not be obligated
to relet the Premises before leasing other portions of the Building. Landlord
shall not be liable for, nor shall Tenant's obligations hereunder be diminished
because of, Landlord's failure to relet the Premises or to collect rent due for
such reletting. Tenant shall not be entitled to the excess of any consideration
obtained by reletting over the Rent due hereunder. Reentry by Landlord in the
Premises shall not affect Tenant's obligations hereunder for the unexpired Term;
rather, Landlord may, from time to time, bring an action against Tenant to
collect amounts due by Tenant, without the necessity of Landlord's waiting until
the expiration of the Term. Unless Landlord delivers written notice to Tenant
expressly stating that it has elected to terminate this Lease, all actions taken
by Landlord to dispossess or exclude Tenant from the Premises shall be deemed to
be taken under this Section 18.(b). If Landlord elects to proceed under this
Section 18.(b), it may at any time elect to terminate this Lease under Section
18.(a); or

         (c) Alteration of Locks. Additionally, with or without notice, and to
             -------------------
the extent permitted by. Law, Landlord may alter locks or other security devices
at the Premises to deprive Tenant of access thereto, and Landlord shall not be
required to provide a new key or right of access to Tenant.

     Any and all remedies set forth in this Lease: (i) shall be in addition to
any and all other remedies Landlord may have at law or in equity; (ii) shall be
cumulative; and (iii) may be pursued successively or concurrently as Landlord
may elect. The exercise of any remedy by Landlord shall not be deemed an
election of remedies or preclude Landlord from exercising any other remedies in
the future. Notwithstanding the foregoing, Landlord shall only recover its
damages allowed hereunder once.

     19. Payment by Tenant; Non-Waiver; Cumulative Remedies.
         --------------------------------------------------

         (a) Payment by Tenant. Upon any Event of Default, Tenant shall pay to
             -----------------
Landlord all costs incurred by Landlord (including court costs and reasonable
attorneys' fees and expenses) in (1) obtaining possession of the Premises, (2)
removing and storing Tenant's or any other occupant's property, (3) repairing,
restoring, altering, remodeling, or otherwise putting the Premises into
condition acceptable to a new tenant, (4) if Tenant is dispossessed of the
Premises and this Lease is not terminated, reletting all or any part of the
Premises (including brokerage commissions, cost of tenant finish work, and other
costs incidental to such reletting), (5) performing Tenant's obligations which
Tenant failed to perform, and (6) enforcing, or advising Landlord of, its
rights, remedies, and recourses arising out of the Event of Default. To the full
extent permitted by law, Landlord and Tenant agree the federal and state courts
of the state in which the Premises are located shall have exclusive jurisdiction
over any matter relating to or arising from this Lease and the parties' rights
and obligations under this Lease.

         (b) No Waiver. Landlord's acceptance of Rent following an Event of
             ---------
Default shall not waive Landlord's rights regarding such Event of Default. No
waiver by Landlord of any violation or breach of any of the terms contained
herein shall waive Landlord's rights regarding any future violation of

                                       16

<PAGE>

such term. Landlord's acceptance of any partial payment of Rent shall not waive
Landlord's rights with regard to the remaining portion of the Rent that is due,
regardless of any endorsement or other statement on any instrument delivered in
payment of Rent or any writing delivered in connection therewith; accordingly,
Landlord's acceptance of a partial payment of Rent shall not constitute an
accord and satisfaction of the full amount of the Rent that is due.

         (c) Cumulative Remedies. Any and all remedies set forth in this Lease:
             -------------------
(1) shall be in addition to any and all other remedies Landlord may have at law
or in equity, (2) shall be cumulative, and (3) may be pursued successively or
concurrently as Landlord may elect. The exercise of any remedy by Landlord shall
not be deemed an election of remedies or preclude Landlord from exercising any
other remedies in the future.

     20. [Intentionally Omitted].

     21. Surrender of Premises. No act by Landlord shall be deemed an acceptance
         ---------------------
of a surrender of the Premises, and no agreement to accept a surrender of the
Premises shall be valid unless it is in writing and signed by Landlord. At the
expiration or termination of this Lease, Tenant shall deliver to Landlord the
Premises with all improvements located therein in good repair and condition,
free of Hazardous Materials placed on the Premises during the Term, broom-clean,
reasonable wear and tear (and condemnation and Casualty damage not caused by
Tenant, as to which Sections 14 and 15 shall control) excepted, and shall
deliver to Landlord all keys to the Premises. During the Term, Tenant may remove
all unattached trade fixtures, furniture, and personal property placed in the
Premises or elsewhere in the Building by Tenant (but Tenant may not remove any
such item which was paid for, in whole or in part, by Landlord or any wiring or
cabling unless Landlord requires such removal). All alterations, additions, or
improvements made in or upon the Premises shall, at Landlord's option (to be
exercised pursuant to following sentence), either be removed by Tenant prior to
the end of the Term (and Tenant shall repair all damage caused thereby), or
shall remain in the Premises at the end of the Term without compensation to
Tenant. In connection with Landlord's review and approval of any of Tenant's
proposed alterations, additions or improvements to the Premises, Landlord may
notify Tenant in writing, contemporaneously with Landlord's notice of approval
to Tenant with respect to the improvements in question, that Landlord will
require Tenant to remove such alterations, additions, or improvements prior to
the expiration of the Term; however, if Tenant submits plans and specifications
to Landlord for proposed alterations, additions or improvements to the Premises
and delivers a Removal Notice (defined below) to Landlord contemporaneously with
such submission by Tenant, and Landlord fails to notify Tenant that Tenant will
be required to remove such alterations, additions or improvements to the
Premises at the expiration of the Term, Landlord may not request such removal at
the expiration of the Term. A "Removal Notice" means a written notice from
Tenant to Landlord that conspicuously states in bold, uppercase typeface that
Tenant will not be required to remove the alterations, additions or improvements
in question at the end of the Term unless, contemporaneously with Landlord's
notice of approval to Tenant with respect to the alterations, additions or
improvements in question, Landlord notifies Tenant in writing that Landlord will
require Tenant to remove such alterations, additions or improvements prior to
the expiration of the Term. Notwithstanding the foregoing, if Tenant does not
obtain Landlord's prior written consent for any alterations, additions or
improvements to the Premises (whether such approval is required hereunder or
otherwise), Tenant shall, at Landlord's written request, remove all such
alterations, additions, improvements, trade fixtures, personal property,
equipment, wiring, cabling, and furniture as Landlord may request. Tenant shall
repair all damage caused by such removal. All items not so removed shall, at
Landlord's option, be deemed to have been abandoned by Tenant and may be
appropriated, sold, stored, destroyed, or otherwise disposed of by Landlord
without notice to Tenant and without any obligation to account for such items.
The provisions of this Section 21 shall survive the end of the Term.

                                       17

<PAGE>

     22. Holding Over. If Tenant fails to vacate the Premises at the end of the
         ------------
Term, then Tenant shall be a tenant at sufferance and, in addition to all other
damages and remedies to which Landlord may be entitled for such holding over,
(a) Tenant shall pay, in addition to the other Rent, Basic Rent equal to the
greater of (1) 150% of the Basic Rent payable during the last month of the Term,
or (2) 125% of the prevailing rental rate in the Building for similar space, and
(b) Tenant shall otherwise continue to be subject to all of Tenant's obligations
under this Lease. The provisions of this Section 22 shall not be deemed to limit
or constitute a waiver of any other rights or remedies of Landlord provided
herein or at law. If Tenant fails to surrender the Premises upon the termination
or expiration of this Lease, in addition to any other liabilities to Landlord
accruing therefrom, Tenant shall protect, defend, indemnify and hold Landlord
harmless from all loss, costs (including reasonable attorneys' fees) and
liability resulting from such failure, including any claims made by any
succeeding tenant founded upon such failure to surrender, and any lost profits
to Landlord resulting therefrom.

     23. Certain Rights Reserved by Landlord. Provided that the exercise of such
         -----------------------------------
rights does not unreasonably interfere with Tenant's occupancy of the Premises,
Landlord shall have the following rights:

         (a) Building Operations. To decorate and to make inspections, repairs,
             -------------------
alterations, additions, changes, or improvements, whether structural or
otherwise, in and about the Building, or any part thereof; to enter upon the
Premises (after giving Tenant reasonable notice thereof, which may be oral
notice, except in cases of real or apparent emergency, in which case no notice
shall be required) and, during the continuance of any such work, to temporarily
close doors, entryways, public space, and corridors in the Building; to
interrupt or temporarily suspend Building services and facilities; to change the
name of the Building; and to change the arrangement and location of entrances or
passageways, doors, and doorways, corridors, elevators, stairs, restrooms, or
other public parts of the Building;

         (b) Security. To take such reasonable measures as Landlord deems
             --------
advisable for the security of the Building and its occupants; evacuating the
Building for cause, suspected cause, or for drill purposes; temporarily denying
access to the Building; and closing the Building after normal business hours and
on Sundays and holidays, subject, however, to Tenant's right to enter when the
Building is closed after normal business hours under such reasonable regulations
as Landlord may prescribe from time to time;

         (c) Prospective Purchasers and Lenders. To enter the Premises at all
             -----------------------------------
reasonable hours to show the Premises to prospective purchasers or lenders; and

         (d) Prospective Tenants. At any time during the last 12 months of the
             -------------------
Term (or earlier if Tenant has notified Landlord in writing that it does not
desire to renew the Term) or at any time following the occurrence of an Event of
Default, to enter the Premises at all reasonable hours to show the Premises to
prospective tenants.

     24. Substitution Space. Landlord may, at Landlord's expense, relocate
         ------------------
Tenant within the Building to space which is comparable in size, utility and
condition to the Premises. If Landlord relocates Tenant, Landlord shall
reimburse Tenant for Tenant's reasonable out-of-pocket expenses for moving
Tenant's furniture, equipment, and supplies from the Premises to the relocation
space and for reprinting Tenant's stationery of the same quality and quantity as
Tenant's stationery supply on hand immediately before Landlord's notice to
Tenant of the exercise of this relocation right. Upon such relocation, the
relocation space shall be deemed to be the Premises and the terms of the Lease
shall remain in full force and shall apply to the relocation space.
Notwithstanding anything in this Section 24 to the contrary, Landlord may
exercise its right to relocate Tenant as provided in this Section 24 not more
than once during the initial Term.

                                       18

<PAGE>

     25. Miscellaneous.
         -------------

         (a) Landlord Transfer. Landlord may transfer any portion of the
             -----------------
Building and any of its rights under this Lease. If Landlord assigns its rights
under this Lease, then Landlord shall thereby be released from any further
obligations hereunder arising after the date of transfer, provided that the
assignee assumes Landlord's obligations hereunder in writing.

         (b) Landlord's Liability. The liability of Landlord (and its partners,
             --------------------
shareholders or members) to Tenant (or any person or entity claiming by, through
or under Tenant) for any default by Landlord under the terms of this Lease or
any matter relating to or arising out of the occupancy or use of the Premises
and/or other areas of the Building shall be limited to Tenant's actual direct,
but not consequential, damages therefor and shall be recoverable only from the
interest of Landlord in the Building, and Landlord (and its partners,
shareholders or members) shall not be personally liable for any deficiency.

         (c) Force Majeure. Other than for Tenant's obligations under this Lease
             -------------
that can be performed by the payment of money (e.g., payment of Rent and
maintenance of insurance), whenever a period of time is herein prescribed for
action to be taken by either party hereto, such party shall not be liable or
responsible for, and there shall be excluded from the computation of any such
period of time, any delays due to strikes, riots, acts of God, shortages of
labor or materials, war, governmental laws, regulations, or restrictions, or any
other causes of any kind whatsoever which are beyond the control of such party.

         (d) Brokerage. Neither Landlord nor Tenant has dealt with any broker or
             ---------
agent in connection with the negotiation or execution of this Lease, other than
Trammell Crow Company and Hunneman Commercial Company (collectively, the
"Brokers"), whose commission shall be paid by Landlord pursuant to a separate
 -------
written agreement between Landlord and each of the Brokers. Tenant and Landlord
shall each indemnify the other against all costs, expenses, attorneys' fees,
liens and other liability for commissions or other compensation claimed by any
broker or agent claiming the same by, through, or under the indemnifying party.

        (e) Estoppel Certificates. From time to time, Tenant shall furnish to
            ---------------------
any party designated by Landlord, within 10 days after Landlord has made a
request therefor, a certificate signed by Tenant confirming and containing such
factual certifications and representations as to this Lease as Landlord may
reasonably request. Unless otherwise required by Landlord's Mortgagee or a
prospective purchaser or mortgagee of the Building, the initial form of estoppel
certificate to be signed by Tenant is attached hereto as Exhibit F. From time to
                                                         ---------
time, Landlord shall furnish to any party designated by Tenant, with 15 days
after Tenant has made a request therefor, a certificate signed by Landlord
confirming and containing such factual certifications and representations as to
this Lease as Tenant may reasonably request.

         (f) Notices. All notices and other communications given pursuant to
             -------
this Lease shall be in writing and shall be (1) mailed by first class, United
States Mail, postage prepaid, certified, with return receipt requested, and
addressed to the parties hereto at the address specified in the Basic Lease
Information, (2) hand delivered to the intended address, (3) sent by a
nationally recognized overnight courier service, or (4) sent by facsimile
transmission during normal business hours followed by a confirmatory letter sent
in another manner permitted hereunder. All notices shall be effective upon
delivery to the address of the addressee. The parties hereto may change their
addresses by giving notice thereof to the other in conformity with this
provision.

         (g) Separability. If any clause or provision of this Lease is illegal,
             ------------
invalid, or unenforceable under present or future laws, then the remainder of
this Lease shall not be affected thereby

                                       19

<PAGE>

and in lieu of such clause or provision, there shall be added as a part of this
Lease a clause or provision as similar in terms to such illegal, invalid, or
unenforceable clause or provision as may be possible and be legal, valid, and
enforceable.

         (h) Amendments; and Binding Effect. This Lease may not be amended
             ------------------------------
except by instrument in writing signed by Landlord and Tenant. No provision of
this Lease shall be deemed to have been waived by Landlord unless such waiver is
in writing signed by Landlord, and no custom or practice which may evolve
between the parties in the administration of the terms hereof shall waive or
diminish the right of Landlord to insist upon the performance by Tenant in
strict accordance with the terms hereof. The terms and conditions contained in
this Lease shall inure to the benefit of and be binding upon the parties hereto,
and upon their respective successors in interest and legal representatives,
except as otherwise herein expressly provided. This Lease is for the sole
benefit of Landlord and Tenant, and, other than Landlord's Mortgagee, no third
party shall be deemed a third party beneficiary hereof.

         (i) Quiet Enjoyment. Provided Tenant has performed all of its
             ---------------
obligations hereunder, Tenant shall peaceably and quietly hold and enjoy the
Premises for the Term, without hindrance from Landlord or any party claiming by,
through, or under Landlord, but not otherwise, subject to the terms and
conditions of this Lease.

         (j) No Merger. There shall be no merger of the leasehold estate hereby
             ---------
created with the fee estate in the Premises or any part thereof if the same
person acquires or holds, directly or indirectly, this Lease or any interest in
this Lease and the fee estate in the leasehold Premises or any interest in such
fee estate.

         (k) No Offer. The submission of this Lease to Tenant shall not be
             --------
construed as an offer, and Tenant shall not have any rights under this Lease
unless Landlord executes a copy of this Lease and delivers it to Tenant.

         (l) Entire Agreement. This Lease constitutes the entire agreement
             ----------------
between Landlord and Tenant regarding the subject matter hereof and supersedes
all oral statements and prior writings relating thereto. Except for those set
forth in this Lease, no representations, warranties, or agreements have been
made by Landlord or Tenant to the other with respect to this Lease or the
obligations of Landlord or Tenant in connection therewith. The normal rule of
construction that any ambiguities be resolved against the drafting party shall
not apply to the interpretation of this Lease or any exhibits or amendments
hereto.

         (m) Waiver of Jury Trial. To the maximum extent permitted by law,
             --------------------
Landlord and Tenant each waive right to trial by jury in any litigation arising
out of or with respect to this Lease.

         (n) Governing Law. This Lease shall be governed by and construed in
             -------------
accordance with the laws of the state in which the Premises are located.

         (o) Recording. Tenant shall not record this Lease without the prior
             ---------
written consent of Landlord, which consent may be withheld or denied in the sole
and absolute discretion of Landlord.

         (p) Joint and Several Liability. If Tenant is comprised of more than
             ---------------------------
one party, each such party shall be jointly and severally liable for Tenant's
obligations under this Lease. All unperformed obligations of Tenant at the end
of the Term shall survive.

         (q) Financial Reports. Within 15 days after Landlord's request, Tenant
             ------------------
will furnish Tenant's most recent audited financial statements (including any
notes to them) to Landlord, or, if no such

                                       20

<PAGE>

audited statements have been prepared, such other financial statements (and
notes to them) as may have been prepared by an independent certified public
accountant or, failing those, Tenant's internally prepared financial statements.
If Tenant is a publicly traded corporation, Tenant may satisfy its obligations
hereunder by providing to Landlord Tenant's most recent annual and quarterly
reports. Tenant will discuss its financial statements with Landlord and,
following the occurrence of an Event of Default hereunder, will give Landlord
access to Tenant's books and records in order to enable Landlord to verify the
financial statements. Landlord will not disclose any aspect of Tenant's
financial statements that Tenant designates to Landlord as confidential except
(1) to Landlord's Mortgagee or prospective mortgagees or purchasers of the
Building, (2) in litigation between Landlord and Tenant, and (3) if required by
court order. Tenant shall not be required to deliver the financial statements
required under this Section 25.(q) more than once in any 12 month period unless
requested by Landlord's Mortgagee or a prospective buyer or lender of the
Building or an Event of Default occurs.

         (r) Landlord's Fees. Whenever Tenant requests Landlord to take any
             ---------------
action not required of it hereunder or give any consent required or permitted
under this Lease, Tenant will reimburse Landlord for Landlord's reasonable,
out-of-pocket costs payable to third parties and incurred by Landlord in
reviewing the proposed action or consent, including reasonable attorneys',
engineers' or architects' fees, within 30 days after Landlord's delivery to
Tenant of a statement of such costs. Tenant will be obligated to make such
reimbursement without regard to whether Landlord consents to any such proposed
action.

         (s) Telecommunications. Tenant and its telecommunications companies,
             ------------------
including local exchange telecommunications companies and alternative access
vendor services companies, shall have no right of access to and within the
Building, for the installation and operation of telecommunications systems,
including voice, video, data, Internet, and any other services provided over
wire, fiber optic, microwave, wireless, and any other transmission systems
("Telecommunications Services"), for part or all of Tenant's telecommunications
within the Building and from the Building to any other location without
Landlord's prior written consent. Landlord shall not unreasonably withhold its
consent to the installation of any Telecommunications Services if located
entirely within the Premises; otherwise, Landlord may withhold or delay its
consent in its sole discretion. All providers of Telecommunications Services
shall be required to comply with the rules and regulations of the Building,
applicable Laws and Landlord's policies and practices for the Building. Tenant
acknowledges that Landlord shall not be required to provide or arrange for any
Telecommunications Services and that Landlord shall have no liability to any
Tenant Party in connection with the installation, operation or maintenance of
Telecommunications Services or any equipment or facilities relating thereto.
Tenant, at its cost and for its own account, shall be solely responsible for
obtaining all Telecommunications Services.

         (t) Confidentiality. Tenant acknowledges that the terms and conditions
             ---------------
of this Lease are to remain confidential for Landlord's benefit, and may not be
disclosed by Tenant to anyone, by any manner or means, directly or indirectly,
without Landlord's prior written consent; however, Tenant may disclose the terms
and conditions of this Lease to its resident attorneys, accountants, employees
and existing or prospective financial partners. The consent by Landlord to any
disclosures shall not be deemed to be a waiver on the part of Landlord of any
prohibition against any future disclosure.

         (u) Authority. Tenant (if a corporation, partnership or other business
             ---------
entity) hereby represents and warrants to Landlord that Tenant is a duly formed
and existing entity qualified to do business in the state in which the Premises
are located, that Tenant has full right and authority to execute and deliver
this Lease, and that each person signing on behalf of Tenant is authorized to do
so. Landlord hereby represents and warrants to Tenant that Landlord is a duly
formed and existing entity qualified to do business in the state in which the
Premises are located, that Landlord has full right and authority to execute and
deliver this Lease, and that each person signing on behalf of Landlord is
authorized to do so.

                                       21

<PAGE>

         (v) Hazardous Materials. The term "Hazardous Materials" means any
             -------------------
substance, material, or waste which is now or hereafter classified or considered
to be hazardous, toxic, or dangerous under any Law relating to pollution or the
protection or regulation of human health, natural resources or the environment,
or poses or threatens to pose a hazard to the health or safety of persons on the
Premises or in the Building. Tenant shall not use, generate, store, or dispose
of, or permit the use, generation, storage or disposal of Hazardous Materials on
or about the Premises or the Building except in a manner and quantity necessary
for the ordinary performance of Tenant's business, and then in compliance with
all Laws. If Tenant breaches its obligations under this Section 25.(v), Landlord
may immediately take any and all action reasonably appropriate to remedy the
same, including taking all appropriate action to clean up or remediate any
contamination resulting from Tenant's use, generation, storage or disposal of
Hazardous Materials. Tenant shall defend, indemnify, and hold harmless Landlord
and its representatives and agents from and against any and all claims, demands,
liabilities, causes of action, suits, judgments, damages and expenses (including
reasonable attorneys' fees and cost of clean up and remediation) arising from
Tenant's failure to comply with the provisions of this Section 25.(x). This
indemnity provision shall survive termination or expiration of this Lease.

         (w) List of Exhibits. All exhibits and attachments attached hereto are
             ----------------
incorporated herein by this reference

         Exhibit A -    Outline of Premises
         Exhibit B -    Description of the Land
         Exhibit C -    Building Rules and Regulations
         Exhibit D -    Tenant Finish-Work

         Exhibit E -    Form of Confirmation of Commencement Date Letter
         Exhibit F -    Form of Tenant Estoppel Certificate
         Exhibit G -    Parking
         Exhibit H -    Renewal Option
         Exhibit I -    Form of Letter of Credit

         (x) Tenant's Identification Sign. Subject to the terms and provisions
             ----------------------------
of this Section 25.(x), Tenant, at its sole cost and expense, may install a sign
identifying Tenant's business at the Premises on the wall next to the entrance
to the Premises. The specific location of such sign, as well as all aspects of
the design of such sign (including, without limitation, the size and color of
such sign, the materials used to create such sign, and the method of attaching
such sign to the wall) shall be subject to the prior written approval of
Landlord, which approval shall not be unreasonably withheld. Notwithstanding
anything in this Lease to the contrary, Tenant, at its sole cost and expense,
shall maintain such sign in a good and safe condition throughout the Term. If
Tenant fails to maintain such sign in a good and safe condition, then Landlord
may, at its election without being obligated to do so, perform any maintenance
thereof as is determined by Landlord to be necessary to keep such sign in a good
and safe condition. The cost of all maintenance performed by Landlord under this
Section 25.(x) shall be paid by Tenant to Landlord within 30 days after Landlord
has invoiced Tenant therefor. On or prior to the expiration or earlier
termination of this Lease, Tenant shall remove such sign and repair all damage
caused by such removal.

                                       22

<PAGE>

     26. Other Provisions.
         ----------------

LANDLORD AND TENANT EXPRESSLY DISCLAIM ANY IMPLIED WARRANTY THAT THE PREMISES
ARE SUITABLE FOR TENANT'S INTENDED COMMERCIAL PURPOSE, AND TENANT'S OBLIGATION
TO PAY RENT HEREUNDER IS NOT DEPENDENT UPON THE CONDITION OF THE PREMISES OR THE
PERFORMANCE BY LANDLORD OF ITS OBLIGATIONS HEREUNDER, AND, EXCEPT AS OTHERWISE
EXPRESSLY PROVIDED HEREIN, TENANT SHALL CONTINUE TO PAY THE RENT, WITHOUT
ABATEMENT, DEMAND, SETOFF OR DEDUCTION, NOTWITHSTANDING ANY BREACH BY LANDLORD
OF ITS DUTIES OR OBLIGATIONS HEREUNDER, WHETHER EXPRESS OR IMPLIED.

     IN WITNESS WHEREOF, and in consideration of the mutual entry into this
Lease and for other good and valuable consideration, and intending to be legally
bound, each party hereto has caused this Lease to be duly executed as a
Massachusetts instrument under seal as of the day and year first above written.

LANDLORD:                     W9/TIB REAL ESTATE LIMITED PARTNERSHIP,
                              a Delaware limited partnership
                              By:  W9/TIB Gen-Par, Inc., a Delaware corporation,
                                   its general partner

                                  By: /s/  S. M. Abelman

                                  Name:  Stephen M. Abelman

                                  Title: Assistant Vice President

TENANT:                       VERISITY DESIGN, INC., a California corporation

                              By: /s/ David Larwood
                                  -----------------
                                  Name:  David Larwood
                                         ---------------
                                  Title: General Counsel
                                         ---------------

                                       23

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