Document:

MARYLAND FULL-SERVICE OFFICE LEASE

                        SEVENTY COLUMBIA CORPORATE CENTER

         THIS LEASE is made and entered into as of April 11, 2000 by and between
SEVENTY COLUMBIA CORPORATE CENTER LIMITED PARTNERSHIP, a Maryland limited
partnership ("Landlord") by ROUSE PROPERTY  MANAGEMENT,  INC., Managing Agent,
and EXCALIBUR TECHNOLOGIES CORP., a Delaware corporation ("Tenant").

          In consideration of the rents hereinafter  reserved and the agreements
hereinafter set forth, Landlord and Tenant mutually agree as follows:

         1.   SUMMARY OF TERMS.

         The  following is a summary of the  principal  terms of the Lease.  Any
capitalized term set forth below shall, for the purposes of this Lease, have the
meaning ascribed to it in this Section 1.

         A.       Description of Premises

                  (1)  Building:  The building known as Seventy Columbia
Corporate Center and located at 11000 Broken Land Parkway, Columbia, Maryland
21044.

                  (2)  Business Community:  Columbia Town Center

                  (3)  Premises:  Approximately  18,371  square  feet of Rental
Area on the eighth  floor of the  Building as shown on Schedule A.

                  (4)  Property:  means the  Building,  the land upon  which the
Building  is  situated,  the Common  Area,  and such  additional  facilities  in
subsequent years as may be determined by Landlord to be reasonably  necessary or
desirable for the management, maintenance or operation of the Building.

         B.       Rent

                  (1)  Annual Basic Rent:

                  PSF                     Annual                    Monthly
Period            Basic Rent              Basic Rent                Installment
Year  1:          $24.50                  $450,089.50               $37,507.46
Year  2:          $25.24                  $463,684.04               $38,640.34
Year  3:          $26.00                  $477,646.00               $39,803.83
Year  4:          $26.78                  $491,975.38               $40,997.95
Year  5:          $27.58                  $506,672.18               $42,222.68

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                  (2)  Advance Rent:  None.

                  (3) Security  Deposit:  Thirty-seven  Thousand Five Hundred
Seven Dollars and Forty-six Cents ($37,507.46) to be held by Landlord as
provided in Section 6.4.

         C.       Adjustments.

                  (4)  Adjustment Period Consumer Price Index. Intentionally
                       omitted.

         D.       Term

                  (1)  Term:  Five (5) years, subject to Section 4.

                  (2)  Lease Commencement Date:  June 15, 2000, subject to
                       Section 4.

                  (3)  Termination Date:  June 14, 2005, subject to Section 4.

         E.       Notice and Payment

                  (1)  Tenant Notice Address:
                           Ms. Nancy McKinley, Director of Human Resources and
                           Administration
                           Excalibur Technologies
                           1921 Gallows Road
                           Suite 200
                           Vienna, Virginia 22182

                  (2)  Landlord Notice Address:
                           Columbia Management, Inc.
                           10420 Little Patuxent Parkway
                           Suite 420
                           Columbia, Maryland  21044

                           with a copy to:
                           Rouse Property Management, Inc.
                           c/o The Rouse Company
                           10275 Little Patuxent Pkwy
                           Columbia, Maryland 21044
                           Attention: General Counsel

                  (3)  Landlord Payment Address:
                           Rouse Office Management, Inc.
                           P.O. Box 64078
                           Columbia, Maryland  21264-4078

         F.       Broker

                           The Manekin Corporation
                           7165 Columbia Gateway Drive
                           Columbia, Maryland 21046

                           and

                           Mr. David Cravedi
                           The Fred Ezra Company
                           4520 East West Highway
                           Bethesda, Maryland 20817

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         2.   DEFINITIONS.

         For  purposes of this Lease,  the  Schedules  attached  and made a part
hereof and all agreements  supplemental to this Lease, the following terms shall
have the respective meanings as set forth in the following Section,  subsection,
paragraph and Schedule references:

Reference

Additional Rent.........................................................6.3
Alterations............................................................15.1
Annual Basic Rent.......................................................1.B
Bankruptcy Code........................................................19.1
Building................................................................1.A
Casualty...............................................................17.1
Common Area............................................................10.1
Default Rate............................................................6.5
Event of Default.......................................................20.1
Event of Tenant's Bankruptcy...........................................19.1
Insolvency Laws........................................................19.1
Landlord Notice Address.................................................1.E
Landlord Payment Address................................................1.E
Lease Commencement Date.................................................1.D
Mortgage.................................................................27
Mortgagee................................................................27
Premises................................................................1.A
Property................................................................1.A
Public Areas.....................................................Schedule C
Renewal Term............................................................4.3
Rental Area...............................................................3
Rental Year.............................................................6.1
Rules and Regulations.....................................................9
Security Deposit.....................................................1.B.(3)
Tenant Notice Address...................................................1.E
Tenant's Personal Property.............................................15.3
Term....................................................................4.1
Termination Date........................................................1.D.
Transfer.................................................................25

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         3.  LEASED PREMISES; MEASUREMENT.

         3.1.  Leased  Premises.  Landlord  hereby leases to Tenant,  and Tenant
hereby leases from Landlord,  the Premises as shown on the plan attached  hereto
as Schedule A, together with the right to use, in common with others, the Common
Area.  The rental  area of the  Premises  ("Rental  Area") has been  computed in
accordance  with the applicable  formula set forth in Schedule X attached hereto
and made a part hereof.

         4.  TERM AND COMMENCEMENT OF TERM.

         4.1.  Term.  The term of this Lease (the "Term") shall  commence on the
Lease Commencement Date and shall be for the period of time specified in Section
1.D.(1) plus the part of the month, if any, from the Lease  Commencement Date to
the first day of the  first  full  calendar  month in the Term,  unless  earlier
terminated  pursuant to any other provision of this Lease or pursuant to law. At
Landlord's  request,  Tenant shall promptly enter into one or more supplementary
written  agreements,  in  such  form as  Landlord  shall  reasonably  prescribe,
specifying the Lease Commencement Date and the Termination Date.

         4.2. Option to Renew.  Provided Tenant is in possession of the Premises
and is not in default of any term,  covenant or condition of this Lease,  Tenant
shall  have the  option to renew the Term of this  Lease for one (1)  additional
period  of five (5) years  ("Renewal  Term") to  commence  immediately  upon the
expiration of the initial Term.

         Said  Renewal  Term  shall  be  upon  the  same  terms,  covenants  and
conditions  as  contained  in this Lease,  except that (i) the Annual Basic Rent
during said Renewal Term shall be at the "Prevailing Market Rate" and (ii) there
shall be no further option to renew except as  specifically  provided herein and
(iii)  there  shall be no  abatement  of rent,  and (iv)  Landlord  shall not be
obligated to  construct,  pay for or grant an  allowance  with respect to tenant
improvements  unless  otherwise   specifically   provided  for  in  this  Lease.
"Prevailing  Market  Rate"  shall mean the  current  market  rental rate for the
Premises as  determined by Landlord but shall not be more than the rate at which
Landlord  would  offer  such space or space of  approximately  the same size and
location to a third  party.  In no event,  however,  shall the Annual Basic Rent
during the Renewal Term be less than the Annual Basic Rent  reserved  under this
Lease for the Rental Year  immediately  preceding the Renewal Term for which the
determination is being made.

         In order to exercise  the option  granted  herein,  Tenant shall notify
Landlord,  in writing,  not less than six (6) months prior to the  expiration of
the initial Term that it is considering exercising its option to renew the Term.
On receipt of such notice, Landlord will, in writing, not later than thirty (30)
days after  receipt  of the notice  from  Tenant,  quote to Tenant  what the new
Annual Basic Rent will be for the ensuing Renewal Term. Tenant shall then notify
Landlord,  in writing, not later than fifteen (15) days after notice received of
such Annual Basic Rent,  as to whether or not it will exercise the option herein
granted and if no such notice of exercise of the option is received,  the option
shall be deemed waived.  In the event Tenant exercises the option,  Landlord and
Tenant shall execute a modification to this Lease acknowledging such renewal and
setting forth the new Annual Basic Rent.

         The option  shall be void if, at the time of exercise  of such  option,
Tenant is not in  possession  of the Premises or if there is an Event of Default
under this Lease or if Tenant  fails to deliver  the  requisite  notice  thereof
within the time period  specified  above. The option granted herein shall not be
severed from this Lease, separately sold, assigned or transferred.

<PAGE>

         5.  TENANT IMPROVEMENTS AND ACCEPTANCE OF PREMISES.

         5.1. Delivery of Premises. Landlord shall deliver, and Tenant agrees to
accept,  the Premises  broom clean and in "as-is"  condition.  By occupying  the
Premises,  Tenant  shall be deemed to have (a)  accepted  the  Premises in their
present condition,  (b) acknowledged that the Premises are suitable for Tenant's
intended  use,  and (c) agreed that  Landlord  shall not be required to make any
repairs or improvements to the Premises.

         6.   RENT.

         6.1. Annual Basic Rent. Tenant shall pay to Landlord during each Rental
Year of the Term  fixed  rent  equal to the  Annual  Basic  Rent as set forth in
Section 1.B.(1).  Annual Basic Rent shall be payable in advance on the first day
of each month of the Term in equal monthly installments, without notice, demand,
abatement (except as otherwise  specifically provided in this Lease),  deduction
or  set-off.  If the Term of this Lease  shall  commence on a day other than the
first day of a month,  the first payment shall include any prorated Annual Basic
Rent for the  period  from the Lease  Commencement  Date to the first day of the
first full calendar month of the Term.

         "Rental Year" shall mean each  successive  twelve (12)  calendar  month
period  occurring  during the Term of this  Lease,  or portion of such a period,
with the first  Rental Year  commencing  as of the Lease  Commencement  Date and
ending on the last day of the twelfth full  calendar  month  thereafter  and the
last Rental Year ending on the Termination  Date. For any Rental Year of less or
more than twelve full months,  Annual Basic Rent shall be adjusted  accordingly.
All Annual  Basic Rent and  Additional  Rent  shall be paid to  Landlord  at the
Landlord Payment Address.

         6.2.  Intentionally omitted.

         6.3.  Additional Rent.  Tenant shall pay to Landlord as additional rent
("Additional  Rent") all other sums of money which shall  become due and payable
hereunder.  Unless  a date  for  payment  is  otherwise  specified  herein,  all
Additional Rent shall be due and payable within thirty (30) days of invoicing by
Landlord.

         6.4  Advance Rent; Security Deposit.

                  A.  Advance Rent.  Intentionally Deleted.

                  B.  Security  Deposit.  Tenant shall,  upon  execution of this
Lease, deposit with Landlord the Security Deposit to assure Tenant's performance
of all terms,  provisions and conditions of this Lease.  Landlord shall have the
right,  but not the  obligation,  at any time, to apply the Security  Deposit to
cure any breach by Tenant  under this Lease and,  in that  event,  Tenant  shall
immediately pay Landlord any amount necessary to restore the Security Deposit to
its original amount.  To the extent permitted by law, Landlord shall be entitled
to the full use of the Security Deposit and shall not be required either to keep
the  Security  Deposit  in a  separate  account  or to pay  interest  on account
thereof.  Any portion of the Security  Deposit which is not utilized by Landlord
for any purpose  permitted  under this Lease shall be returned to Tenant  within
forty-five (45) days after the end of the Term provided Tenant has performed all
of the obligations imposed upon Tenant pursuant to this Lease.

<PAGE>

         6.5.  Late Charge.  If Tenant fails to make any payment of Annual Basic
Rent,  Additional Rent, or other sums required to be paid hereunder on or before
the date when payment is due, Tenant shall pay to Landlord,  as Additional Rent,
a late charge to cover extra administrative costs and loss of use of funds equal
to (a) six percent (6%) of the amount due for the first month or portion thereof
that such amount is past due plus (b)  interest on the amount  remaining  unpaid
thereafter  at the rate of eighteen  percent (18%) per annum or six percent (6%)
above the prime  rate  charged  by  Citibank,  N.A.,  as of the due date of such
amount, whichever rate is the greater; provided,  however, that should such late
charge at any time violate any applicable  law, the late charge shall be reduced
to the highest rate permitted by law (the  foregoing rate being herein  referred
to as the "Default Rate"). Landlord's acceptance of any rent after it has become
due and  payable  shall not  excuse  any delays  with  respect to future  rental
payments or constitute a waiver of any of Landlord's rights under this Lease.

         7.   INTENTIONALLY OMITTED.

         8.   USE, CARE AND REPAIR OF PREMISES BY TENANT.

         8.1.  Permitted  Uses.  Tenant shall use and occupy the Premises solely
for general office purposes in accordance with applicable zoning regulations and
for no other purpose. Tenant shall not do anything or permit anything to be done
in or on the Premises, or bring or keep anything therein which will, in any way,
obstruct,  injure,  annoy or  interfere  with the  rights of  Landlord  or other
tenants, or subject Landlord to any liability for injury to persons or damage to
property, or interfere with the good order of the Building, or conflict with the
laws, rules or regulations of any Federal, state or city authority.

         8.2.  Care of Premises.  Tenant shall,  at its sole  expense,  keep the
Premises  and the  improvements  and  appurtenances  therein  in good  order and
condition consistent with the operation of a first-class office building, and at
the expiration of the Term, or at the sooner termination of this Lease as herein
provided,  deliver up the same broom clean and in as good order and condition as
at the beginning of the Term, ordinary wear and tear and damage by fire or other
casualty excepted.  Tenant, at its sole expense,  shall promptly replace damaged
or broken doors and glass in and about the interior of the Premises and shall be
responsible  for the  repair and  maintenance  of all  special or custom  Tenant
Improvements  and Alterations,  including,  without  limitation,  the repair and
replacement of appliances and equipment  installed  specifically for Tenant such
as refrigerators,  disposals, computer room air conditioning,  sinks and special
plumbing,  special  light  fixtures and bulbs for those  fixtures,  non-standard
outlets  and  plug-in  strips,  and  special  cabinetry.   Consistent  with  the
provisions of Section 22, Tenant shall pay for all property damage  sustained by
other tenants or occupants of the Building,  due to any waste, misuse or neglect
by Tenant of the Premises and any fixtures and appurtenances  related thereto or
due  to  any   breach  of  this  Lease  by  Tenant,   its   employees,   agents,
representatives or invitees.

         8.3. Hazardous Substances.  For purposes of this provision,  "Hazardous
Substances" shall mean any hazardous or toxic substance,  material or waste, now
or hereafter  defined or regulated under the Resource  Conservation and Recovery
Act (42  U.S.C.  _ 6901 et  seq.),  the  Comprehensive  Environmental  Response,
Compensation,  and Liability Act (42 U.S.C. _ 9601 et seq.), the Clean Water Act
(33 U.S.C. _ 1251 et seq.),  the Clean Air Act (42 U.S.C.  _ 7401 et seq.),  and
the Toxic  Substances  Control Act (15 U.S.C.  _ 2601 et seq.),  and all similar
federal,  state and local  statutes,  laws,  rules and regulations in connection
with environmental conditions,  health and safety, including without limitation,
asbestos and petroleum products  (collectively,  "Environmental  Laws").  Tenant
covenants  and agrees that it will not use or allow the  Premises to be used for
the storage,  use,  treatment or disposal of any  Hazardous  Substance,  without
Landlord's  prior written  consent.  Notwithstanding  the foregoing,  Landlord's
prior  written  consent  shall not be required  with  respect to  Tenant's  use,
storage or sale of certain supplies or products, which might contain or might be
considered a Hazardous  Substance,  in the normal course of Tenant's business in
accordance  with the specific use  permitted by this Lease,  provided,  however,
that Tenant shall (i) comply with all other  provisions  of this  Section;  (ii)
notify  Landlord in writing from time to time of the  identity  and  approximate
quantity  of such  Hazardous  Substance;  and (iii)  keep  each  such  Hazardous

<PAGE>

Substance on the Premises in quantities as small as reasonably practicable,  but
in  no  event  large  enough  to  activate  reporting   requirements  under  any
Environmental  Law.  Tenant,  at Tenant's sole cost and expense  shall  promptly
contain and  remediate  any release of a Hazardous  Substance on the Property to
the extent such release arises directly from the actions of Tenant,  its agents,
servants and employees.

           Tenant shall  indemnify,  reimburse and hold harmless  Landlord,  its
partners and affiliates agents from and against any damages, claims,  judgments,
fines,  penalties,  costs,  liabilities  (including  sums paid in  settlement of
claims) or loss including reasonable  attorneys' fees,  reasonable  consultants'
fees, and reasonable expert fees incurred by any of them to the extent resulting
from Tenant's use, handling,  generation,  treatment,  storage,  disposal, other
management or release of any Hazardous  Substance at or from the Premises or the
Property,  whether  or not  Tenant has acted  negligently  with  respect to such
Hazardous  Substance.  This  indemnity  shall survive the  expiration or earlier
termination of this Lease.

         As of the Lease Commencement Date,  Landlord warrants and represents to
Tenant that to Landlord's actual knowledge, there are no Hazardous Substances in
violation of any Environmental  Laws in the Property of which the Premises are a
part.

         From and after the date of execution of this Lease,  Landlord  will not
use or allow the Property to be used for the storage, use, treatment or disposal
of any Hazardous  Substance,  in violation of any Environmental  Laws.  Landlord
shall promptly contain and remediate any release of a Hazardous Substance on the
Property  to the  extent  such  release  arises  directly  from the  actions  of
Landlord,  its agents,  servants and employees,  and not solely from  Landlord's
position as an owner or operator of the Property.

         Landlord  shall  indemnify,  reimburse  and hold  harmless  and  defend
Tenant, its servants and employees, from and against all claims, actions, losses
and expenses made or incurred by third parties  (including  attorneys' and other
professional  fees),  arising  from any conduct,  activity,  act,  omission,  or
operation involving the use, handling, generation, treatment, storage, disposal,
or release of any  Hazardous  Substance  in, from,  or to the  Property,  to the
extent caused  directly by the actions of Landlord,  its servants and employees,
and not arising solely out of Landlord's position as an owner or operator of the
Property.  This indemnity shall survive the expiration or earlier termination of
this Lease.

         8.4. Compliance with Laws. Tenant, at its sole cost and expense,  shall
conform to and comply with and shall cause the Premises to conform to and comply
with all federal,  state,  county,  municipal and other  governmental  statutes,
laws,  rules,  orders,  regulations,  and  ordinances  applicable  to  Tenant or
resulting  from Tenant's use or occupancy of the Premises or the Property or any
part thereof.

         Landlord  warrants  and  represents  to  Tenant  that,  as of the Lease
Commencement Date,  Landlord is in the process of implementing a compliance plan
for  the  Property,   which  is  intended  to  comply   substantially  with  the
requirements of The Americans With  Disabilities  Act of 1990, and Landlord will
proceed to execute such plan  throughout the Term,  subject to the provisions of
Sections 7 and 15.1 of this Lease.

<PAGE>

         9.   RULES AND REGULATIONS.

         Tenant and its agents and invitees shall abide by and observe the rules
and regulations  attached hereto as Schedule C for the operation and maintenance
of the Building or any new rules and regulations  which may from time to time be
issued by Landlord  ("Rules and  Regulations"),  provided  that any new rules or
regulations are not inconsistent  with the provisions of this Lease.  Nothing in
this Lease shall be  interpreted  to impose upon Landlord any duty or obligation
to  enforce  any such  rules and  regulations  against  any other  tenant in the
Building,  and Landlord shall not be liable to Tenant for any violation of these
rules and regulations by any other tenant or its agents or invitees.

         All rules and regulations  promulgated by Landlord shall be reasonable,
shall not materially alter the terms of this Lease and any enforcement  shall be
uniform  with  respect to all  tenants'  use and  occupancy  of the Building and
Common Area.

         10.  COMMON AREA.

         10.1.  Definition of Common Area.  As used herein,  "Common Area" means
those areas and  facilities  which may be  furnished  by Landlord on or near the
Property,  as designated by Landlord from time to time, intended for the general
common  use and  benefit  of all  tenants  of the  Building  and  their  agents,
representatives,   licensees,   employees  and  invitees,   including,   without
limitation,  any and all stairs,  landings,  roofs, utility and mechanical rooms
and equipment,  service closets, corridors,  elevators,  lobbies, lavatories and
other  public  areas  of the  Building  and all  parking  areas,  access  roads,
pedestrian walkways, plazas and landscaped areas.

         10.2. Use of Common Area. Tenant shall have the non-exclusive  right to
use the Common Area in common with Landlord,  other tenants in the Building, and
others  entitled  to the use  thereof,  subject  to such  reasonable  rules  and
regulations  governing  the use of the Common Area as Landlord  may from time to
time prescribe and subject to such  easements  therein as Landlord may from time
to time grant to others. Tenant shall not obstruct in any way any portion of the
Common Area or in any way interfere with the rights of other persons entitled to
use the  Common  Area and shall  not,  without  the  prior  written  consent  of
Landlord,  use the Common Area in any manner,  directly or  indirectly,  for the
location or display of any  merchandise  or property  belonging to Tenant or for
the  location of signs  relating to Tenant's  operations  in the  Premises.  The
Common Area shall at all times be subject to the  exclusive  reasonable  control
and management of Landlord.

         10.3.  Alterations to the Common Area.  Landlord  reserves the right at
any time and from  time to time (i) to change  or alter  the  location,  layout,
nature or arrangement of the Common Area or any portion  thereof,  including but
not limited to the arrangement and/or location of entrances, passageways, doors,
corridors, stairs, lavatories,  elevators, parking areas, and other public areas
of the building,  and (ii) to construct additional  improvements on the Property
and make alterations  thereof or additions thereto and build additional  stories
on or in any such buildings or build adjoining same; provided,  however, that no
such  change or  alteration  shall  deprive  Tenant  of access to the  Premises,
materially interfere with Tenant's use of the Premises or reduce the Rental Area
of the Premises,  unless such  reduction is required by Federal,  State or local
laws or  regulations,  in which  event,  a reduction  in the  Premises  shall be
permitted with a commensurate  reduction in rent.  Landlord shall have the right
to close  temporarily  all or any  portion of the Common  Area to such extent as
may, in the reasonable opinion of Landlord, be necessary to prevent a dedication
thereof to the public,  provided that Tenant is not thereby denied access to the
Premises,  or for  repairs,  replacements  or  maintenance  to the Common  Area,
provided such repairs,  replacements or maintenance are performed  expeditiously
and in such a manner as not to deprive Tenant of access to the Premises.

         10.4.  Maintenance.  Landlord covenants to keep,  maintain,  manage and
operate the Common Area in a manner  consistent  with the  operation  of a first
class  office  building  and to  keep  the  sidewalks  and  driveways,  if  any,
constituting a portion of the Common Area clean and reasonably clear of snow and
ice.  Landlord  reserves  the right of access to the  Common  Area  through  the
Premises  for the  purposes of  operation,  decoration,  cleaning,  maintenance,
safety, security, alterations and repairs.

<PAGE>

         11.  SERVICES AND UTILITIES.

         So long as  Tenant  is not in an Event of  Default  under  this  Lease,
Landlord shall provide the following facilities and services to Tenant, the cost
of such  facilities  and services to be included in Landlord's  Operating  Costs
(except as otherwise provided herein):

         a. At least one elevator (if the building contains an elevator) subject
to call at all times,  including Sundays and holidays.  The holidays observed by
Landlord are New Year's Day, Memorial Day observed, Independence Day, Labor Day,
Thanksgiving, and Christmas.

         b. During  "normal  business  hours" as  hereinafter  defined,  central
heating and air conditioning  during the seasons of the year when these services
are normally and usually  furnished,  and within the  temperature  ranges and in
such amounts normally or usually furnished in comparable office buildings in the
immediate  vicinity.  For the  purposes of this  paragraph  b, the term  "normal
business  hours"  shall  mean the  periods  from 8:00 a.m.  until  6:00 p.m.  on
business days and from 8:00 a.m.  until 12:00 p.m. on Saturdays.  Landlord shall
provide the aforesaid  services at other times,  at Tenant's  expense,  provided
Tenant gives Landlord notice by 1:00 p.m. on weekdays for after-hour  service on
the next  weekday,  by 1:00 p.m.  the day  before a  holiday  for  service  on a
holiday,  and by 1:00 p.m.  on Friday  for  after-hour  service on  Saturday  or
service on Sunday. Such after-hour,  holiday or special weekend service shall be
charged to Tenant at rates to be  calculated  by  Landlord  based on  Landlord's
costs,  which rates shall be given to Tenant on request.  Landlord  reserves the
right to adjust,  from time to time,  the rate at which such  services  shall be
provided  corresponding to adjustments in Landlord's costs. Tenant shall pay for
such  service,  as  Additional  Rent,  promptly  upon receipt of an invoice with
respect thereto.

         c. Reasonable  amounts of electric  current for lighting and normal and
customary  items of office  equipment  (subject to the  provisions of Section 12
below).

         d. Cleaning in Landlord's standard manner attached hereto as
Schedule D.

         e. Replacement of light tubes or bulbs for building  standard  lighting
fixtures.  All light tube or bulb replacements for special non-standard lighting
fixtures shall be furnished and installed by Landlord at Tenant's expense.

         f. Rest room facilities and necessary lavatory supplies,  including hot
and cold running  water at the points of supply,  as provided for general use of
all tenants in the  Building  and routine  maintenance,  painting,  and electric
lighting service for all public areas of the Building in such manner as Landlord
deems reasonable.

<PAGE>

         Any failure by Landlord to furnish the  foregoing  services,  resulting
from circumstances beyond Landlord's  reasonable control or from interruption of
such services due to repairs or maintenance, shall not render Landlord liable in
any respect for damages to either  person or  property,  nor be  construed as an
eviction of Tenant, nor cause an abatement of rent hereunder, nor relieve Tenant
from any of its  obligations  hereunder.  If any public utility or  governmental
body shall require Landlord or Tenant to restrict the consumption of any utility
or reduce any service  for the  Premises or the  Building,  Landlord  and Tenant
shall comply with such  requirements,  whether or not the utilities and services
referred  to in this  Section  11 are  thereby  reduced or  otherwise  affected,
without any  liability  on the part of Landlord to Tenant or any other person or
any reduction or adjustment in rent payable  hereunder.  Landlord and its agents
shall  be  permitted  reasonable  access  to the  Premises  for the  purpose  of
installing  and  servicing  systems  within the  Premises  deemed  necessary  by
Landlord to provide the services and utilities referred to in this Section 11 to
Tenant and other tenants in the Building.

         Landlord reserves the right to charge Tenant the reasonable cost, based
on usage, of the removal of all trash and the reasonable cost of  water/sewerage
or electric service to the extent Tenant's trash disposal, water/sewerage and/or
electrical usage exceeds, in Landlord's reasonable opinion,  normal usage for an
office tenant.

         In the event any failure to supply services continues uninterrupted for
a period of greater than  fourteen  (14)  consecutive  calendar days and thereby
renders the Premises wholly or partially untenantable,  the rent shall be abated
to the extent of such untenantability.

         12.  ELECTRIC CURRENT.

         Landlord shall be under no obligation to furnish  electrical  energy to
Tenant in amounts  greater  than needed for  lighting  and normal and  customary
items of equipment for general office purposes,  and Tenant shall not install or
use on the Premises any electrical  equipment,  appliance or machine which shall
require amounts of electrical energy exceeding the standard wattage provided for
the Building,  unless the  installation  and use of such  additional  electrical
equipment, appliance, or machine has been approved by Landlord pursuant to terms
and  conditions  set  forth  in a  separate  agreement,  which  approval  may be
conditioned  upon the payment by Tenant, as Additional Rent, of the cost of the
additional  electrical  energy and  modifications  to the Building's  electrical
system required for the operation of such electrical  equipment,  appliance,  or
machine.

         13.  LOSS, DAMAGE AND INJURY.

         To the maximum extent permitted by law, Tenant shall occupy and use the
Premises, the Building and the Common Area at Tenant's own risk. Consistent with
the provisions of subsection 16.4, Tenant's Personal Property and personal items
of those claiming by, through or under Tenant,  located in or on the Premises or
the  Building  shall be and  remain at the sole  risk of  Tenant  or such  other
person.

         No representation, guaranty, assurance, or warranty is made or given by
Landlord  that the  communications  or security  systems,  devices or procedures
used, if any, will be effective to prevent  injury to Tenant or any other person
or damage  to,  or loss (by  theft or  otherwise)  of any of  Tenant's  Personal
Property or of the property of any other person, and Landlord reserves the right
to discontinue or modify at any time such  communications  or security  systems,
devices, or procedures without liability to Tenant.

<PAGE>

         14.  REPAIRS BY LANDLORD.

         Landlord  shall keep the Premises  and the Building and all  machinery,
equipment, fixtures and systems of every kind attached to, or used in connection
with  the  operation  of,  the  Building,  including  all  electrical,  heating,
mechanical,   sanitary,   sprinkler,   utility,   power,   plumbing,   cleaning,
refrigeration,  ventilating, air conditioning and elevator systems and equipment
(excluding, however, lines, improvements,  systems and machinery for water, gas,
steam and  electricity  owned and  maintained by any public  utility  company or
governmental  agency  or body) in good  order  and  repair  consistent  with the
operation of the Building as a first-class  office  building.  Landlord,  at its
expense  (subject to  reimbursement by Tenant pursuant to Section 7), shall make
all repairs and replacements  necessary to comply with its obligations set forth
in the immediately  preceding  sentence,  except for (a) repairs  required to be
made by Tenant  pursuant  to  Section 8 and (b)  repairs  caused by the  willful
misconduct of Tenant, its agents, employees,  invitees and guests, which repairs
shall be made by Landlord at the cost of Tenant,  and for which Tenant shall pay
promptly,  as Additional Rent, upon receipt of an invoice setting forth the cost
of such repairs.  There shall be no abatement in rents due and payable hereunder
and no  liability  on the part of  Landlord  by reason of any  inconvenience  or
annoyance arising from Landlord's  making repairs,  additions or improvements to
the Building in accordance with its obligations hereunder.

         15.  ALTERATIONS, TITLE AND PERSONAL PROPERTY.

         15.1.  Alterations.  Tenant shall in no event make or permit to be made
any alteration, modification,  substitution or other change of any nature to the
mechanical, electrical, plumbing, HVAC, and  sprinkler systems within or serving
the Premises.  After  completion of Tenant's  Improvements  within the Premises,
Tenant  shall not make or  permit  any other  improvements,  alterations,  fixed
decorations,  substitutions or  modifications,  structural or otherwise,  to the
Premises or the Building  ("Alterations")  without the prior written approval of
Landlord.  Landlord  shall not  unreasonably  withhold  or delay its  consent to
Alterations  which  do  not  affect  the  structural,  mechanical,  plumbing  or
electrical  elements or systems of the  Building  and which are not visible from
outside the Premises,  provided  such work  conforms  with the design  criteria,
standards and  architectural  guidelines for the Building.  Landlord's  approval
shall include the conditions  under which  acceptable  Alterations  may be made.
Alterations  shall  include,   but  not  be  limited  to,  the  installation  or
modification of carpeting, walls, partitions, counters, doors, shelves, lighting
fixtures,  hardware,  locks, ceiling,  window and wall coverings;  but shall not
include the initial Tenant's Improvements placed within the Premises pursuant to
Section 5.1. All Alterations shall be based on complete plans and specifications
prepared  and  submitted  by  Tenant to  Landlord  for  approval,  except in the
instance of cosmetic  changes,  such as painting  and  carpeting,  in which case
Tenant shall provide  Landlord with samples  showing  colors,  styles,  etc. All
Alterations shall be made by Landlord at Tenant's sole cost,  payable by Tenant,
as Additional Rent, within thirty (30) days after receipt of an invoice for same
from  Landlord,  which  cost  shall  include  Landlord's  standard  construction
management fee, which such fee as of the Lease Commencement Date is thirteen and
a half  percent  (13.5%).  Tenant  shall  be  responsible  for  the  cost of any
additional  improvements  within the Premises or the Common Area required by The
Americans with Disabilities Act of 1990 as a result of Tenant's Alterations.

         If Tenant makes any Alterations  without the prior consent of Landlord,
then, in addition to Landlord's  other remedies,  Landlord may correct or remove
such  Alterations  and Tenant shall pay the cost thereof,  as  Additional  Rent,
within ten (10) days of receipt of invoice from Landlord.

<PAGE>

         15.2.  Title.  The  Tenant   Improvements,   all  Alterations  and  all
equipment, machinery, furniture, furnishings, and other property or improvements
installed  or located in the  Premises  by or on behalf of  Landlord  or Tenant,
other than Tenant's Personal Property, (a) shall immediately become the property
of Landlord and (b) shall remain upon and be  surrendered  to Landlord  with the
Premises  as a  part  thereof  at  the  end of  the  Term.  Notwithstanding  the
foregoing, Landlord may, upon notice to Tenant at the time Alterations are made,
elect that any  Alterations  be removed at the end of the Term,  and  thereupon,
Landlord  shall at Tenant's sole expense,  cause such  Alterations to be removed
and  restore  the  Premises  to its  condition  prior  to  the  making  of  such
Alterations,  reasonable wear and tear excepted. Tenant shall promptly reimburse
Landlord,  as Additional  Rent, for the cost of such work,  which  reimbursement
obligation shall survive termination of the Lease.

         15.3.  Tenant's Personal  Property.  "Tenant's Personal Property" means
all equipment,  machinery,  furniture,  furnishings and/or other property now or
hereafter  installed  or placed in or on the Premises by and at the sole expense
of Tenant  with  respect  to which  Tenant  has not been  granted  any credit or
allowance by Landlord and which (a) is not used, or was not procured for use, in
connection with the operation,  maintenance or protection of the Premises or the
Building;  (b) is removable without damage to the Premises or the Building;  and
(c) is not a replacement of any property of Landlord,  whether such  replacement
is made at Tenant's expense or otherwise. Notwithstanding any other provision of
this Lease,  Tenant's Personal Property shall not include any Alterations or any
improvements or other property installed or placed in or on the Premises as part
of Tenant's Improvements,  whether or not installed at Tenant's expense.  Tenant
shall promptly pay all personal property taxes on Tenant's Personal Property, as
applicable.  Provided  that  Tenant  is  not  then  in  default  of  any  of its
obligations  under this Lease,  Tenant may remove all Tenant's Personal Property
from the Premises at the  termination of this Lease.  Any property  belonging to
Tenant  or any other  person  which is left in the  Premises  after the date the
Lease is terminated  for any reason shall be deemed to have been  abandoned.  In
such event,  Landlord  shall have the right to declare  itself the owner of such
property and to dispose of it in whatever manner Landlord considers  appropriate
without  waiving its right to claim from Tenant all expenses and damages  caused
by Tenant's failure to remove such property, and Tenant shall not have any right
to compensation or claim against Landlord as a result.

         16.  INSURANCE.

         16.1.  Tenant's  Insurance.  Tenant,  at its expense,  shall obtain and
maintain in effect as long as this Lease remains in effect and during such other
time as Tenant occupies the Premises or any part thereof  insurance  policies in
accordance with the following provisions.

         A. Coverage.

                  (i) commercial general liability  insurance policy,  including
insurance  against  assumed or  contractual  liability  under this  Lease,  with
respect to the Property,  to afford protection with limits,  per occurrence,  of
not less than Two Million  Dollars  ($2,000,000),  combined  single limit,  with
respect to personal injury, bodily injury,  including death, and property damage
and  Four  Million  Dollars  ($4,000,000)   aggregate  (occurrence  form),  such
insurance to provide for no deductible;

                  (ii) all-risk  property  insurance  policy,  including  theft,
written  at  replacement  cost  value  and with  replacement  cost  endorsement,
covering all of Tenant's Personal Property in the Premises, and covering loss of
income  resulting  from  casualty,  such  insurance to provide for no deductible
greater than Five Thousand Dollars ($5,000).

<PAGE>

                  (iii)  worker's   compensation  or  similar  insurance  policy
offering statutory coverage and containing  statutory limits, which policy shall
also  provide  Employer's  Liability  Coverage  of not less  than  Five  Hundred
Thousand Dollars ($500,000) per occurrence.

                  (iv) Tenant shall require any construction contractor retained
by it to perform  work on the Premises to carry and  maintain,  at no expense to
Landlord,  during  such  times as  contractor  is  working  in the  Premises,  a
non-deductible (a) commercial general liability insurance policy, including, but
not limited to, contractor's liability coverage, contractual liability coverage,
completed  operations  coverage,  broad form  property  damage  endorsement  and
contractor's protective liability coverage, to afford protection with limits per
person  and  for  each  occurrence,   of  not  less  than  Two  Million  Dollars
($2,000,000),  combined  single limit,  and with respect to personal  injury and
death  and  property  damage,  Four  Million  Dollars   ($4,000,000)   aggregate
(occurrence  form) and Two  Million  Dollars  ($2,000,000)  aggregate  completed
operations;  (b)  automobile  liability  insurance  in the amount of One Million
Dollars  ($1,000,000)  combined  single  limit for bodily  injury  and  property
damage;  (c) worker's  compensation  insurance or similar  insurance in form and
amounts as required by law; and (d) any other insurance  reasonably  required of
Tenant by Landlord or any Mortgagee.

                  (v)   Notwithstanding   anything   set  forth  above  in  this
subsection  16.1 to the contrary,  all dollar limits  specified  herein shall be
increased  from time to time as  reasonably  necessary  to  effect  economically
equivalent  insurance  coverage,  or coverage  deemed  adequate in light of then
existing circumstances.

         B. Policies.

         Such  policies  shall  be  maintained  with  companies  licensed  to do
business in the State  where the  Premises  are  located and in form  reasonably
acceptable  to Landlord and will be written as primary  policy  coverage and not
contributing  with, or in excess of, any coverage  which  Landlord  shall carry.
Such  policies  shall be provided on an occurrence  form basis unless  otherwise
approved  by Landlord  and shall  include  Landlord  and its  managing  agent as
additional  insured as to coverage under paragraphs  16.1.A.(i) and 16.1.A.(iv).
Such  policies  shall  also  contain a waiver  of  subrogation  provision  and a
provision   stating  that  such  policy  or  policies  shall  not  be  canceled,
non-renewed,  reduced in coverage or materially altered except after thirty (30)
day's  written  notice,  said notice to be given in the manner  required by this
Lease to Landlord,  Attention: Risk Management Department.  All such policies of
insurance  shall be  effective  as of the date Tenant  occupies the Premises and
shall be  maintained in force at all times during the Term of this Lease and all
other times during which Tenant shall occupy the Premises.  Tenant shall deposit
the policy or policies of such required  insurance or certificates  thereof with
Landlord prior to the Lease Commencement Date.

         16.2.  Tenant's  Failure  to  Insure.  If Tenant  shall  fail to obtain
insurance  as required  under this  Section 16,  Landlord  may, but shall not be
obligated to,  obtain such  insurance,  and in such event,  Tenant shall pay, as
Additional Rent, the premium for such insurance upon demand by Landlord.

         16.3.  Compliance  with  Policies.  Tenant  shall not do or allow to be
done,  or keep,  or allow to be kept,  anything  in, upon or about the  Premises
which will contravene  Landlord's  policies  insuring  against loss or damage by
fire, other casualty, or any other cause,  including without limitation,  public
liability,  or which will  prevent  Landlord  from  procuring  such  policies in
companies acceptable to Landlord.  If any act or failure to act by Tenant in and
about the  Building  and the  Premises  shall  cause the rates  with  respect to
Landlord's  insurance  policies to be  increased  beyond  those rates that would
normally  be  applicable  for such  limits of  coverage,  Tenant  shall pay,  as
Additional Rent, the amount of any such increases upon demand by Landlord.

<PAGE>

         16.4.  Waiver of Right of Recovery.  Except as provided in Section 8.3,
neither party, including Landlord's managing agent, shall be liable to the other
party,  including Landlord's managing agent, or to any insurance company (by way
of subrogation or otherwise) insuring the other party, for any loss or damage to
any building,  structure or other tangible property, or loss of income resulting
therefrom,  or losses under worker's  compensation laws and benefits even though
such loss or damage might have been  occasioned by the negligence of such party,
its agents or employees. The provisions of this Section 16.4 shall not limit the
indemnification for liability to third parties pursuant to Section 22.

         16.5.  Landlord's  Insurance.  Landlord shall carry commercial general
liability  insurance with regard to the Property and all-risk property insurance
on the Property,  including Tenant  Improvements and Alterations but excluding
Tenant's Personal Property.

         Landlord  shall not be  obligated  to  repair  any  damage to  Tenant's
Personal Property or replace the same.

         17.  DAMAGE AND DESTRUCTION.

         17.1.  Landlord's  Obligation  to Repair  and  Reconstruct.  If, as the
result of fire,  the  elements,  accident or other  casualty (any of such causes
being referred to herein as a "Casualty"), the Premises shall be rendered wholly
or partially untenantable (damaged to such an extent as to preclude Tenant's use
of the Premises  for the purposes  originally  intended),  then,  subject to the
provisions of subsection 17.2,  Landlord shall cause such damage to be repaired,
including Tenant  Improvements  and  Alterations,  and the Annual Basic Rent and
Additional  Rent (but not any Additional  Rent due Landlord  either by reason of
Tenant's  failure to perform any of its  obligations  hereunder  or by reason of
Landlord's having provided Tenant with additional  services  hereunder) shall be
abated  proportionately as to the portion of the Premises rendered  untenantable
during the period of such untenantability. All such repairs shall be made at the
expense of Landlord.  Landlord shall not be liable for  interruption to Tenant's
business  or for  damage  to or  replacement  or  repair  of  Tenant's  Personal
Property,  all of which  replacement or repair shall be undertaken and completed
by Tenant, at Tenant's expense.

         If the Premises  shall be damaged by Casualty,  but the Premises  shall
not be  thereby  rendered  wholly  or  partially  untenantable,  Landlord  shall
promptly  cause such damage to be repaired  and there shall be no  abatement  of
rent reserved hereunder.

         17.2. Termination of Lease. (A) If the Premises are (1) rendered wholly
untenantable,  or (2)  damaged as a result of any cause  which is not covered by
Landlord's  insurance,  or (B) if the Building is damaged to the extent of fifty
percent (50%) or more of the gross leasable area thereof, or (C) if, for reasons
beyond  Landlord's  control  or by virtue of the terms of any  financing  of the
Building, sufficient insurance proceeds are not available for the reconstruction
or  restoration  of the  Building  or  Premises,  then,  in any of such  events,
Landlord  may elect to terminate  this Lease by giving to Tenant  notice of such
election within sixty (60) days after the occurrence of such event, or after the
insufficiency  of  such  proceeds  becomes  known  to  Landlord,   whichever  is
applicable.  If such notice is given,  the rights and obligations of the parties
shall cease as of the date set forth in such  notice,  and the Annual Basic Rent
and Additional  Rent (but not any Additional  Rent due Landlord either by reason
of Tenant's failure to perform any of its obligations  hereunder or by reason of
Landlord's having provided Tenant with additional  services  hereunder) shall be
adjusted  as of the date set  forth in such  notice,  or, if the  Premises  were
rendered untenantable, as of the date of the Casualty.

<PAGE>

         Within  ninety (90) days  following a Casualty,  Landlord  shall notify
Tenant  in  writing  of the date on  which  Landlord,  in its best  professional
judgment,  estimates restoration will be substantially completed. If restoration
is expected to exceed one hundred eighty (180) days after the date of Landlord's
notice,  then  Tenant  shall have the right to  terminate  this Lease on written
notice to Landlord  within fifteen (15) days after receipt of Landlord's  notice
unless Landlord, at its sole expense, temporarily relocates Tenant to comparable
office space within another building in the Business  Community for the duration
of the restoration.  In the event of such a relocation, the rent per square foot
payable  by Tenant for the  temporary  space  shall  equal the lesser of (i) the
rents per square  foot  reserved  under this Lease for the  Premises or (ii) the
current  market rental rate for the  temporary  space as determined by Landlord,
which shall not be more than the rate at which  Landlord  would offer such space
to any other third party.

         17.3.  Demolition  of  the  Building.  If  the  Building  shall  be  so
substantially damaged that it is reasonably  necessary,  in Landlord's judgment,
to  demolish  the  Building  for the  purpose of  reconstruction,  Landlord  may
demolish the same, in which event the Annual Basic Rent and Additional Rent (but
not any  Additional  Rent due Landlord  either by reason of Tenant's  failure to
perform  any of its  obligations  hereunder  or by reason of  Landlord's  having
provided Tenant with additional  services hereunder) shall be abated to the same
extent as if the Premises were rendered wholly untenantable by a Casualty.

         17.4.  Insurance  Proceeds.  If the Lease is not terminated pursuant to
subsection 17.2, Landlord shall, subject to the terms of any Mortgage,  disburse
and apply any insurance  proceeds  received by Landlord to the  restoration  and
rebuilding  of the Building in  accordance  with  subsection  17.1  hereof.  All
insurance  proceeds  payable with respect to the Premises and the Building shall
belong to and shall be  payable to  Landlord.  Notwithstanding  anything  to the
contrary,  Tenant shall be entitled to receive all proceeds payable with respect
to Tenant's Personal Property.

         18.  CONDEMNATION.

         18.1. Termination.  If either the entire Premises or the Building shall
be  acquired  or  condemned  by any  governmental  authority  under its power of
eminent domain for any public or quasi-public  use or purpose,  this Lease shall
terminate as of the date of vesting or  acquisition  of title in the  condemning
authority and the rents hereunder shall be abated on that date. If less than the
whole but more than fifty  percent  (50%) of the Rental Area of the  Premises or
more than fifty  percent  (50%) of the total area of the  Building  (even if the
Premises are  unaffected) or such portion of the Common Area as shall render the
Premises  or the  Building  untenantable  should be so  acquired  or  condemned,
Landlord and Tenant shall each have the option to terminate this Lease by notice
given to the other  within  ninety (90) days of such  taking.  In the event that
such a notice of termination is given, this Lease shall terminate as of the date
of vesting or acquisition  of title in the  condemning  authority and the Annual
Basic Rent and Additional  Rent (but not any Additional Rent due Landlord either
by reason of Tenant's failure to perform any of its obligations hereunder, or by
reason of Landlord's having provided Tenant with additional  services hereunder)
shall be adjusted as of such date.

         If (a) neither  Landlord nor Tenant  shall  exercise  their  respective
options to terminate this Lease,  as hereinabove  set forth,  or (b) some lesser
portion of the Premises or the Building or Common Area, which does not give rise
to a right  to  terminate  pursuant  to this  subsection  18.1,  is taken by the
condemning  authority,  this Lease shall continue in force and effect,  but from
and after the date of the  vesting  of title in the  condemning  authority,  the
Annual Basic Rent payable  hereunder  during the  unexpired  portion of the Term

<PAGE>

shall be reduced in  proportion to the reduction in the total Rental Area of the
Premises,  and any  Additional  Rent (but not any  Additional  Rent due Landlord
either  by  reason  of  Tenant's  failure  to  perform  any of  its  obligations
hereunder,  or by reason of Landlord's  having  provided  Tenant with additional
services  hereunder)  payable  pursuant to the terms hereof shall be adjusted to
reflect the diminution of the Premises and/or the Building, as the case may be.

         18.2.  Rights to Award.  Tenant  shall have no claim  against  Landlord
arising out of the taking or condemnation, or arising out of the cancellation of
this Lease as a result of any such taking or condemnation, or for any portion of
the  amount  that may be  awarded  as  damages  as a  result  of any  taking  or
condemnation,  or for the value of any unexpired portion of the Term, or for any
property lost through  condemnation,  and Tenant hereby  assigns to Landlord all
its  right,  title and  interest  in and to any such  award  with  regard to the
Premises;  provided,  however,  that, in the event of a total taking, Tenant may
assert any claim it may have against the condemning  authority for  compensation
for  Tenant's  Personal  Property  lost  thereby,  loss of  income,  and for any
relocation  expenses  compensable by statute and receive such awards therefor as
may be allowed in the condemnation  proceedings  provided that such awards shall
be made in  addition  to, and  stated  separately  from,  the award made for the
Building,  the  underlying  land  and  the  Premises.  Landlord  shall  have  no
obligation to contest any taking or condemnation.

         19.  BANKRUPTCY.

         19.1.  Event of Bankruptcy.  For purposes of this Lease, each of the
following  shall be deemed an "Event of Tenant's Bankruptcy":

                  (a)      if Tenant becomes insolvent, as defined in the
                           Bankruptcy Code, or under the Insolvency Laws;

                  (b)      the  commencement of any action or proceeding for the
                           dissolution  or  liquidation  of  Tenant  or for  the
                           appointment  of a receiver or trustee of the property
                           of Tenant,  whether  instituted by or against Tenant,
                           if not bonded or  discharged  within thirty (30) days
                           of the date of the commencement of such proceeding or
                           action;

                  (c)      if Tenant files a voluntary petition under the
                           Bankruptcy Code or Insolvency Laws;

                  (d)      if there is filed  an  involuntary  petition  against
                           Tenant as the  subject  debtor  under the  Bankruptcy
                           Code  or  Insolvency  laws,  which  is not  dismissed
                           within  sixty  (60) days of  filing,  or  results  in
                           issuance  of an order for relief  against the debtor;
                           and

                  (e)      if Tenant makes or consents to an assignment of its
                           assets, in whole or in part, for the benefit of
                           creditors, or to a common law composition of
                           creditors.

         As used  herein,  (i)  "Bankruptcy  Code"  means title 11 of the United
States Code, 11 U.S.C.  Section 101 et. seq. as amended or any successor statute
and (ii)  Insolvency Laws means the insolvency laws of any state or territory of
the United States.

<PAGE>

         19.2.  Assumption by Trustee. If Tenant becomes the subject debtor in a
case pending under the Bankruptcy Code, Landlord's right to terminate this Lease
under  Section 20 hereof shall be subject to the  applicable  rights (if any) of
the Trustee in Bankruptcy to assume or assign this Lease as then provided for in
the Bankruptcy  Code.  However,  the Trustee in Bankruptcy must give to Landlord
and Landlord must receive proper  written notice of the Trustee's  assumption or
rejection of this Lease, within sixty (60) days (or such other applicable period
as is  provided  for in the  Bankruptcy  Code)  after the date of the  Trustee's
appointment.  The failure of the Trustee to give notice of the assumption within
the period shall conclusively and irrevocably constitute the Trustee's rejection
of this Lease and waiver of any rights of the  Trustee to assume or assign  this
Lease.  The  Trustee  shall not have the right to  assume or assign  this  Lease
unless the Trustee (i) promptly  and fully cures all defaults  under this Lease,
(ii) promptly and fully  compensates  Landlord for all monetary damages incurred
as a result of such default,  and (iii) provides to Landlord adequate  assurance
of future performance.  In the event Tenant is unable to: (i) cure its defaults,
(ii)  reimburse  Landlord  for its monetary  damages,  or (iii) pay the Rent due
under this Lease on time,  then Tenant  hereby agrees in advance that it has not
met its burden to provide  adequate  assurance of future  performance,  and this
Lease may be terminated by Landlord in accordance with Section 20.

         19.3. Tenant's Guarantor's Bankruptcy. Notwithstanding any of the other
provisions of this Lease, in the event Tenant's obligations under this Lease are
guaranteed by a guarantor, and said guarantor shall voluntarily or involuntarily
come  under  the  jurisdiction  of the  Bankruptcy  Code,  and  thereafter  said
guarantor or its trustee in  bankruptcy,  under the authority of and pursuant to
applicable   provisions  thereof,   shall  determine  to  assign  the  guarantee
obligations of said  guarantor  hereunder,  Tenant and its said guarantor  agree
that  (a)  said  guarantor  or its  trustee  will  provide  Landlord  sufficient
information  enabling it to independently  determine whether Landlord will incur
actual and substantial detriment by reason of such assignment, and (b) "adequate
assurance of future performance" in regard to such guarantee obligations of said
guarantor,  as that term is generally defined under the Bankruptcy Code, will be
provided  to  Landlord by said  guarantor  or its trustee and its  assignee as a
condition of said assignment.

         20.  DEFAULT PROVISIONS AND REMEDIES.

         20.1.  Events of Default.  Each of the following shall be deemed an
Event of Default by Tenant under this Lease:

                  a.  failure of Tenant to pay  Annual  Basic  Rent,  Additional
Rent,  or any  other sum  required  to be paid  under  the terms of this  Lease,
including  late  charges,  within ten (10) days after  notice  from  Landlord of
non-payment;

                  b.  failure by Tenant to perform  or observe  any other  term,
covenant,  agreement  or  condition  of this Lease,  on the part of Tenant to be
performed  (other than those  obligations of Tenant set forth in subsection 16.2
for which  Tenant shall be entitled to receive no prior  notice,  and other than
the conditions set forth in paragraphs  20.1.a, c, d, e, f and g, which shall be
governed solely by the provisions set forth herein),  within ten (10) days after
notice  thereof from the  Landlord,  unless such  performance  shall  reasonably
require a longer period,  in which case Tenant shall not be deemed in default if
Tenant commences the required  performance  promptly and thereafter  pursues and
completes such action  diligently and  expeditiously and in any event within not
more than thirty (30) days;

                  c. the filing of a tax or mechanic's lien against any property
of Tenant  which is not bonded or discharged within thirty (30) days of the date
such lien is filed;

<PAGE>

                  d. abandonment of the Premises by Tenant;  provided,  however,
that  Tenant  shall not be deemed to be in default  hereunder  so long as Tenant
shall continue the payment of Annual Basic Rent and  Additional  Rent under this
Lease;

                  e.  an Event of Tenant's Bankruptcy;

                  f.  the sale of Tenant's interest in the Premises under
attachment, execution or similar legal process; and

                  g. the failure of Tenant to vacate the Premises upon the
expiration of the Term, or the earlier termination thereof pursuant to the
other provisions hereof.

         20.2.  Remedies.  Upon the occurrence of an Event of Default, Landlord,
without notice to Tenant in any instance (except where expressly provided for
below or by applicable law) may do any one or more of the following:

         (a)      Intentionally deleted

         (b)      perform, on behalf and at the expense of Tenant, any
                  obligation of Tenant under this Lease which Tenant has failed
                  to perform and of which Landlord shall have given Tenant
                  notice, the cost of which performance by Landlord, together
                  with interest thereon at the Default Rate from the date of
                  such expenditure, shall be payable by Tenant to Landlord, as
                  Additional Rent, upon demand.  Notwithstanding the provisions
                  of this clause (b) and regardless of whether an Event of
                  Default shall have occurred, Landlord may exercise the remedy
                  described in clause (b) without any notice to Tenant if
                  Landlord, in its good faith judgment, believes it would be
                  materially injured by failure to take rapid action or if the
                  unperformed obligation of Tenant constitutes an emergency;

         (c)      elect to terminate  this Lease and the tenancy  created hereby
                  by giving notice of such  election to Tenant,  and reenter the
                  Premises,  by summary  proceedings  or  otherwise,  and remove
                  Tenant and all other  persons and property  from the Premises,
                  and store such property in a public  warehouse or elsewhere at
                  the cost of and for the  account of Tenant  without  resort to
                  legal  process and without  Landlord  being  deemed  guilty of
                  trespass or becoming liable for any loss or damage  occasioned
                  thereby;

         (d)      declare any option which Tenant may have to renew the Term or
                  expand the Premises to be null and void and of no further
                  force and effect; or

         (e)      exercise any other legal or equitable right or remedy which it
                  may have.

         Any costs and  expenses  incurred  by Landlord  and Tenant  (including,
without limitation,  reasonable  attorneys' fees) in enforcing any of its rights
or remedies under this Lease shall be paid to Landlord by Tenant,  as Additional
Rent, upon demand.

<PAGE>

         20.3.  Damages.  If this Lease is  terminated  by Landlord  pursuant to
Section  20.2.(c),  Tenant  nevertheless  shall remain liable for (a) any Annual
Basic Rent,  Additional Rent, and damages which may be due or sustained prior to
such termination, and (b) all reasonable costs, fees and expenses including, but
not limited to,  attorneys'  fees,  costs and  expenses  incurred by Landlord in
pursuit of its remedies hereunder or in renting the Premises to others from time
to time.  In addition,  Landlord may recover from Tenant  additional  damages to
compensate  Landlord for loss of rent resulting  from  termination of the Lease,
which, at the election of Landlord, shall be either:

         (i)      An amount equal to the rent which, but for termination of
                  this Lease, would have become due during the remainder of the
                  Term, less the amount of rent, if any, which Landlord shall
                  receive during such period from others to whom the Premises
                  may be rented (other than any Additional Rent received by
                  Landlord as a result of any failure of such other person to
                  perform any of  its obligations to Landlord), in which case
                  such damages shall be computed and payable in monthly
                  installments, in advance, on the first day of each calendar
                  month following termination of the Lease and continuing until
                  the date on which the Term would have expired but for such
                  termination; any suit or action brought to collect any such
                  damages for any month shall not in any manner prejudice the
                  right of Landlord to collect  any damages for any subsequent
                  month by a similar proceeding; or

         (ii)     an amount equal to the present worth (as of the date of such
                  termination) of rent which, but for termination of this Lease,
                  would have become due during the remainder of the Term, in
                  which case such damages shall be payable to Landlord  in one
                  lump sum on demand and shall bear interest at the Default Rate
                  until paid.  For purposes of this clause (ii), "present worth"
                  shall be computed by discounting such amount to present worth
                  at a discount rate equal to one percentage point above the
                  discount rate then in effect at the Federal Reserve Bank
                  nearest to the location of  the Property.  Notwithstanding
                  anything to the contrary contained in this paragraph, Landlord
                  agrees to limit its right to accelerate and collect the
                  present worth of Annual Basic Rent due, to successive eighteen
                  (18) month periods following the date of the Default until the
                  Lease Termination Date.

         Damages  shall be due and payable  immediately  upon demand by Landlord
following any termination of this Lease pursuant to Section 20.2.

         If this Lease is  terminated  pursuant to Section  20.2.,  Landlord may
re-lease  the  Premises  or any part  thereof,  alone  or  together  with  other
premises,  for such term(s)  (which may be greater or less than the period which
otherwise would have  constituted the balance of the Term) and on such terms and
conditions  (which may include  concessions or free rent and  alterations of the
Premises) as Landlord,  in its sole  discretion,  may determine.  The failure or
refusal of Landlord to re-lease the Premises or any part or parts  thereof shall
not release or affect Tenant's liability for damages.

         Nothing  contained in this Lease shall limit or prejudice  the right of
Landlord to prove and obtain in proceedings for the termination of this Lease by
reason of bankruptcy or  insolvency,  an amount equal to the maximum  allowed by
any  statute  or rule of law in  effect  at the time  when,  and  governing  the
proceedings in which, the damages are to be proved, whether or not the amount be
greater,  equal to, or less than the amount of the loss or damages  referred  to
above.

<PAGE>

         Notwithstanding anything to the contrary in this Section 20.3, Landlord
shall use  reasonable  efforts to re-lease the Premises,  provided that Landlord
shall not be  required  to (i) use  methods or  procedures  other than its usual
methods and procedures for finding tenants for comparable space in the Building;
(ii)  lease  the  Premises  in  preference  to any other  space in the  Building
available for lease,  regardless  of when such other space became  available for
lease;  (iii) lease the Premises at rents lower than the rate at which  Landlord
would otherwise offer such space to a third party;  (iv) to make improvements to
the Premises at Landlord's  expense;  and (v) lease the Premises for any purpose
or use other than that specifically  permitted by this Lease. Landlord shall not
be liable to Tenant for Landlord's  failure to re-lease the Premises despite the
exercise  of  reasonable  efforts  pursuant  to  this  paragraph,  and  no  such
re-leasing  shall  relieve  Tenant  of its  obligations  under the terms of this
Lease, including, without limitation, the payment of rent as set forth herein.

         20.4. No Waiver.  No act or omission by Landlord  shall be deemed to be
an  acceptance  of a  surrender  of the  Premises or a  termination  of Tenant's
liabilities  hereunder,  unless  Landlord  shall  execute a written  release  of
Tenant. Tenant's liability hereunder shall not be terminated by the execution by
Landlord  of any  new  lease  for  all or any  portion  of the  Premises  or the
acceptance of rent from any assignee or subtenant.

         20.5.  Remedies Not Exclusive.  All rights and remedies of Landlord set
forth in this Lease shall be cumulative,  and none shall exclude any other right
or  remedy,  now  or  hereafter  allowed  by or  available  under  any  statute,
ordinance,  rule of court,  or the common  law,  either at law or in equity,  or
both. For the purposes of any suit brought or based hereon,  this Lease shall be
construed to be a divisible contract,  to the end that successive actions may be
maintained on this Lease as successive periodic sums shall mature hereunder. The
failure of  Landlord  to  insist,  in any one or more  instances,  upon a strict
performance  of any of the  covenants,  terms and conditions of this Lease or to
exercise any right or option herein contained shall not be construed as a waiver
or a relinquishment for the future, of such covenant, term, condition,  right or
option,  but the same shall  continue and remain in full force and effect unless
the  contrary is  expressed  by Landlord in writing.  The receipt by Landlord of
rents  hereunder,  with  knowledge of the breach of any  covenant  hereof or the
receipt  by  Landlord  of less  than the full rent due  hereunder,  shall not be
deemed a waiver of such breach or of Landlord's  right to receive the full rents
hereunder,  and no waiver by Landlord of any provision hereof shall be deemed to
have been made unless expressed in writing and signed by Landlord.

         20.6. Persistent Failure to Pay Rent. In addition to any other remedies
available  to Landlord  pursuant to this Lease or by law,  Landlord  may, at any
time  throughout  the Term of this  Lease,  terminate  this Lease upon  Tenant's
default on three (3)  separate  occasions  during any twelve  (12) month  period
under subsection  20.1.a,  regardless of whether or not such prior defaults have
been cured.  Termination,  pursuant to this subsection  20.6, shall be effective
upon Landlord's delivery to Tenant of a notice of termination.

         21.  Intentionally Deleted.

<PAGE>

         22.  INDEMNITY.

         To the maximum extent  permitted by law, Tenant shall  indemnify,  hold
harmless and (at Landlord's  option) defend Landlord,  its agents,  servants and
employees  from and against  all claims,  actions,  losses,  costs and  expenses
(including  attorneys'  and  other  professional  fees),  judgments,  settlement
payments,  and,  whether or not  reduced  to final  judgment,  all  liabilities,
damages,  or fines paid, incurred or suffered by any third parties to the extent
arising directly or indirectly from (a) any default by Tenant under the terms of
this Lease,  (b) the use or  occupancy  of the  Property by Tenant or any person
claiming through or under Tenant,  and/or (c) any acts or omissions of Tenant or
any contractor,  agent, employee,  invitee or licensee of Tenant in or about the
Property.  The  foregoing  indemnity is in addition to, and not in  substitution
for, any indemnity given by Tenant to Landlord under Section 8.3.

         To the maximum extent permitted by law, Landlord shall indemnify,  hold
harmless and defend Tenant, its agents,  servants and employees from and against
all claims, actions,  losses, costs and expenses (including attorneys' and other
professional fees), judgments,  settlement payments, and, whether or not reduced
to final judgment, all liabilities, damages, or fines paid, incurred or suffered
by any third party to the extent  arising  directly or  indirectly  from (a) any
default by Landlord  under the terms of this Lease,  (b) the use or occupancy of
the Common Area by Landlord or its contractors, agents, or employees, and/or (c)
any acts or  omissions  of Landlord  or any  contractor,  agent,  or employee of
Landlord in or about the Common Area.

         23.  LIMITATION ON LANDLORD LIABILITY.

         The term  "Landlord" as used in this Lease shall mean only the owner or
the  Mortgagee or its  trustees,  as the case may be, then in  possession of the
Property so that in the event of any transfer by Landlord of its interest in the
Property,  the Landlord in possession  immediately  prior to such transfer shall
be,  and  hereby  is,  entirely  released  and  discharged  from all  covenants,
obligations  and  liabilities  of Landlord  under this Lease accruing after such
transfer.  In  consideration of the benefits  accruing  hereunder,  Tenant,  for
itself,  its successors and assigns,  covenants and agrees that, in the event of
any actual or alleged failure,  breach or default hereunder by the Landlord, and
notwithstanding  anything to the contrary contained elsewhere in this Lease, the
remedies of Tenant under this Lease shall be solely and  exclusively  limited to
Landlord's interest in the Property.

         24.  LANDLORD OBLIGATIONS.

         Landlord agrees to perform all of its obligations under this Lease in a
first class manner consistent with the standards applicable to similar buildings
in the  vicinity of the  Building.  Landlord and Tenant shall be excused for the
period of any delay in the performance of any of its obligations  when the delay
is due to any cause or causes beyond Landlord's  control which include,  without
limitation,  acts  of God,  all  labor  disputes,  governmental  regulations  or
controls, civil unrest, war, adverse weather condition,  fire or other casualty,
inability  to obtain any  material,  services,  or  financing  unless  otherwise
provided for in this Lease.  Except where  specifically set forth in this Lease,
there  shall be no  abatement,  set-off  or  deduction  of Annual  Basic Rent or
Additional Rent due under this Lease.

<PAGE>

         25.  ASSIGNMENT AND SUBLETTING.

         25.1.  Prohibited Without Landlord's Consent.  Tenant agrees for itself
and its permitted  successors and assigns in interest hereunder that it will not
(a) assign or otherwise  transfer,  mortgage or otherwise encumber this Lease or
any of its rights  hereunder;  (b) sublet the  Premises  or any part  thereof or
permit the  occupancy  or use of the  Premises or any part thereof by any person
other than Tenant;  and/or (c) permit the  assignment or other  transfer of this
Lease or any of  Tenant's  rights  hereunder  by  operation  of law (each of the
events referred to in the foregoing  clauses (a), (b) and (c) being  hereinafter
referred to as a "Transfer"),  without the prior written  consent of Landlord in
each  instance  first  obtained,  which  consent  may be  given or  withheld  in
Landlord's sole and absolute subjective discretion,  and any consent given shall
not  constitute a consent to any  subsequent  Transfer.  Any attempted  Transfer
without  Landlord's  consent  shall be null and void and  shall not  confer  any
rights  upon  any  purported  transferee,  assignee,  mortgagee,  sublessee,  or
occupant. No Transfer, regardless of whether Landlord's consent has been granted
or  withheld,  shall be deemed to  release  Tenant  from any of its  obligations
hereunder  or to  alter,  impair  or  release  the  obligations  of  any  person
guaranteeing  the  obligations of Tenant  hereunder.  Tenant hereby  indemnifies
Landlord against liability resulting from any claim made against Landlord by any
assignee or subtenant or by any broker  claiming a commission in connection with
the proposed Transfer. In the event Landlord shall consent to a Transfer of this
Lease,  any  option  which  Tenant  may have to renew the Term shall be null and
void.

         Notwithstanding the foregoing, Landlord shall not unreasonably withhold
its consent to a sublet or assignment of this Lease by Tenant provided that: (a)
the proposed  transferee  has a financial  capacity and net worth  sufficient to
fulfill the terms of this Lease,  as determined  by Landlord  based on financial
information about such transferee provided by Tenant or such transferee; (b) the
proposed  use of the Premises by the  proposed  transferee  is permitted by this
Lease and is compatible  with the  operation of the  Building;  (c) the proposed
transferee  is not an existing  tenant in the Building or was not a prospect for
the Building  within six (6) months prior to the proposed  Transfer,  and (d) an
Event of Default does not exist under this Lease.

         Provided Tenant is not in default of any term, covenant or condition of
this  Lease,  Tenant  shall  have the right to assign  this  Lease or sublet the
Premises to a parent,  subsidiary or affiliate corporation of Tenant without the
consent of Landlord. Tenant shall deliver written notice to Landlord of any such
Transfer.  The foregoing waiver of right to consent does not constitute a waiver
of the right of Landlord to consent to any Transfer not  specifically  permitted
hereby.

         25.2.  Stock Transfer.  If Tenant or any Guarantor is a  privately-held
corporation,  then each of the  following  events  shall be deemed a  prohibited
Transfer  under this Section 25 if such event  results in a change in control of
Tenant or  Guarantor:  any  transfer  of  Tenant's  or  Guarantor's  issued  and
outstanding  capital stock;  any issuance of additional  capital  stock;  or the
redemption of any issued and outstanding  stock. If Tenant or any Guarantor is a
partnership, any Transfer of any interest in the partnership or any other change
in the composition of the  partnership,  which results in a change in management
of Tenant or Guarantor from the person or persons managing the partnership as of
the date hereof, shall be deemed a prohibited Transfer under this Section 25.

         Notwithstanding the foregoing, Landlord shall not unreasonably withhold
its consent to a transfer or change of ownership of the voting  corporate  stock
of Tenant which results in a change in control of Tenant,  provided that (a) the
net assets of the Tenant are not  substantially  decreased  by the change in the
corporate  stock  ownership;  (b)  Tenant,  on demand  from  Landlord,  properly
documents  any  changes  in the net  assets  of Tenant  caused by the  change in
control of Tenant,  so that  Landlord  can make an  accurate  judgment as to (a)
hereof;  and (c)  Tenant,  after the  change in  control,  continues  to use the
Premises  for uses  permitted  under this Lease and  operates  its business in a
manner which is consistent  with the  standards of operation for this  Building.
The foregoing  does not  constitute a waiver of the right of Landlord to consent
to any subletting or any assignment.

<PAGE>

         25.3.  Rents from  Transfer.  In the event  Landlord shall consent to a
Transfer of this Lease and the amount of the rents (or other compensation) to be
paid to Tenant by any such  transferee is greater than the rents  required to be
paid by Tenant to Landlord  pursuant to this Lease or a premium is to be paid to
Tenant for an  assignment  of this Lease,  Tenant  shall pay to  Landlord  fifty
percent (50%) of any such excess or any such  premium,  as the case may be, upon
receipt thereof by Tenant from such transferee.

         25.4.  Procedure for Obtaining Landlord's Consent.

         A. In the  event  that,  at any time or from  time to time  prior to or
during  the Term,  Tenant  desires to  Transfer  this Lease in whole or in part,
whether by  operation of law or  otherwise,  Tenant shall submit to Landlord for
its consideration (a) in writing, the name and address of the proposed subtenant
or assignee,  a reasonably  detailed  statement of the proposed  subtenant's  or
assignee's business and reasonably detailed financial references and information
concerning the financial condition of the proposed subtenant or assignee,  (b) a
disclosure  of the  rents to be paid by any  subtenant  in  excess  of the rents
reserved  hereunder or the premium to be paid for the  assignment,  and (c) if a
subletting,  a  description  of the area of the  Premises  to be sublet.  Tenant
agrees to pay Landlord,  as Additional  Rent,  all costs incurred by Landlord in
connection with any actual or proposed Transfer,  including, without limitation,
the  costs  of  making  investigations  as to the  acceptability  of a  proposed
subtenant or assignee and legal costs incurred in connection  with any requested
consent.

         B. Landlord's consent to an assignment of this Lease shall be effective
upon the  execution  by Tenant,  the  assignee,  and  Landlord of an  assignment
document  prepared  by  Landlord  in which the  assignee  shall agree to assume,
observe,  perform, and be bound by, all of Tenant's obligations under this Lease
and Tenant shall agree to remain primarily liable for such obligations.

         Any  consent by  Landlord  to a  subletting  of all or a portion of the
Premises  shall be deemed to have been given only upon the  delivery by Landlord
to Tenant of a consent  document  prepared  and  executed by Landlord  expressly
consenting to such subletting.

         26.  HOLDING OVER.

         Tenant  agrees  to vacate  the  Premises  at the end of the  Term,  and
Landlord shall be entitled to the benefit of all summary  proceedings to recover
possession  of the  Premises  at the  end of the  Term.  If  Tenant  remains  in
possession of the Premises after the  expiration of the Term,  such action shall
not renew this Lease by operation of law and nothing herein shall be deemed as a
consent by Landlord to Tenant's  remaining in the  Premises.  If Tenant fails to
vacate the  Premises as required,  Landlord may consider  Tenant as either (a) a
"Tenant-at-Will" (i.e.  month-to-month tenant) liable for the payment of rent at
the then market rate as determined by Landlord or (b) as a "Tenant-Holding Over"
liable for an amount  equal to the actual  damages  incurred  by  Landlord  as a
result of Tenant's holding over, including,  without limitation, all incidental,
prospective and consequential damages and attorney's fees, but in no event shall
such amount be less than an amount equal to one hundred and fifty percent (150%)
of the Annual Basic Rent, and Additional Rent, reserved hereunder  applicable to
the period of the holdover.  In either event,  all other covenants of this Lease
shall remain in full force and effect.

<PAGE>

         27.  SUBORDINATION AND ATTORNMENT.

         This Lease is subject and  subordinate  to the liens of all  mortgages,
deeds of trust and other security  instruments now or hereafter  placed upon the
Building  or the  Property  or any  portion  thereof  and all  ground  and other
underlying  leases from which  Landlord's  interest is derived (said  mortgages,
deeds of trust, other security instruments,  and ground leases being hereinafter
referred to as "Mortgages" and the mortgagees,  beneficiaries,  secured parties,
and  ground  lessors  thereunder  from  time to time  being  hereinafter  called
"Mortgagees"),  and to any  and  all  renewals,  extensions,  modifications,  or
refinancings  thereof,  without any further act of the Tenant.  If  requested by
Landlord,  however,  Tenant  shall  promptly  execute any  certificate  or other
document confirming such  subordination.  Tenant agrees that, if any proceedings
are brought for the foreclosure of any of the Mortgages, Tenant, if requested to
do so by the purchaser at the foreclosure  sale,  shall attorn to the purchaser,
recognize the purchaser as the landlord under this Lease,  and make all payments
required  hereunder to such new landlord without any deduction or set-off of any
kind whatsoever.  Tenant waives the provisions of any law or regulation,  now or
hereafter  in effect,  which may give,  or purport to give,  Tenant any right to
terminate  this Lease or to alter the  obligations  of Tenant  hereunder  in the
event that any such foreclosure or termination or other proceeding is prosecuted
or completed.

         Notwithstanding   anything  contained  herein  to  the  contrary,   any
Mortgagee may at any time subordinate the lien of its Mortgages to the operation
and effect of this Lease without  obtaining  the Tenant's  consent  thereto,  by
giving the Tenant  written  notice  thereof,  in which event this Lease shall be
deemed to be senior to such Mortgages  without regard to the respective dates of
execution  and/or  recordation  of such  Mortgages and this Lease and thereafter
such Mortgagee  shall have the same rights as to this Lease as it would have had
were this Lease executed and delivered before the execution of such Mortgages.

         If,  in  connection  with  obtaining  financing  for  the  Building,  a
Mortgagee shall request reasonable modifications in this Lease as a condition to
such  financing,  Tenant  will not  unreasonably  withhold,  delay or defer  its
consent thereto,  provided that such  modifications do not materially  adversely
increase the obligations of Tenant hereunder, or materially adversely affect the
leasehold interest hereby created or Tenant's use and enjoyment of the Premises,
or  increase  the  amount of  Annual  Basic  Rent and  Additional  Rent  payable
hereunder.

         Upon Tenant's written request,  Landlord shall use reasonable  efforts,
excluding  the  payment of money,  to obtain a  non-disturbance  agreement  from
Landlord's  Mortgagee with respect to this Lease.  Landlord  agrees to submit to
such  Mortgagee  on  Tenant's  behalf a  non-disturbance  agreement  prepared by
Tenant,  however,  Landlord  makes no  representation  that its  Mortgagee  will
execute any such agreement.

         28.  ESTOPPEL CERTIFICATES.

         Tenant shall, without charge, at any time and from time-to-time, within
fifteen  (15) days after  receipt  of request  therefor  by  Landlord,  execute,
acknowledge and deliver to Landlord a written estoppel certificate, in such form
as may be determined by Landlord,  certifying to Landlord, Landlord's Mortgagee,
any  purchaser  of  Landlord's  interest in the  Building,  or any other  person
designated  by  Landlord,  as of the  date of  such  estoppel  certificate,  the
following,  without  limitation:  (a)  whether  Tenant is in  possession  of the
Premises;  (b) whether this Lease is in full force and effect; (c) whether there
have been any amendments to this Lease,  and if so,  specifying such amendments;
(d)  whether  there are then  existing  any  set-offs  or  defenses  against the
enforcement  of any rights  hereunder,  and if so,  specifying  such  matters in
detail; (e) the dates, if any, to which any rent or other charges have been paid
in advance and the amount of any Security  Deposit  held by  Landlord;  (f) that
Tenant has no knowledge  of any then  existing  defaults of Landlord  under this
Lease, or if there are such defaults, specifying them in detail; (g) that Tenant
has no knowledge of any event having occurred that authorizes the termination of
this Lease by Tenant,  or if such event has  occurred,  specifying it in detail;

<PAGE>

and (h) the address to which  notices to Tenant under this Lease should be sent.
Any such  certificate  may be relied  upon by the person or entity to whom it is
directed or by any other  person or entity who could  reasonably  be expected to
rely on it in the normal  course of business.  The failure of Tenant to execute,
acknowledge  and deliver such a certificate  in accordance  with this Section 28
within fifteen (15) days after a request  therefor by Landlord shall  constitute
an acknowledgment  by Tenant,  which may be relied on by any person who would be
entitled to rely upon any such  certificate,  that such certificate as submitted
by Landlord to Tenant is true and correct.

         29.  PEACEFUL AND QUIET POSSESSION.

         Tenant,  if and so long as it pays all rents due hereunder and performs
and  observes the other terms and  covenants  to be performed  and kept by it as
provided in this Lease,  shall have the  peaceable  and quiet  possession of the
Premises  during  the Term free of any  claims of  Landlord  or anyone  lawfully
claiming by, through or under Landlord,  subject,  however, to the terms of this
Lease and to matters of public record existing as of the date of this Lease.

         30.  LANDLORD'S ACCESS TO PREMISES.

         Landlord  and  its  agents  may  at any  reasonable  time  and  without
incurring any liability to Tenant,  other than  liability  arising under Section
22, enter the Premises to inspect them or to make  alterations or repairs or for
any purpose which Landlord  considers  necessary for the repair,  operation,  or
maintenance  of  the  Building;  provided,  however,  that  in  the  case  of an
emergency,  Landlord may enter the Premises at any time.  Tenant shall allow the
Premises to be exhibited by Landlord (a) at any time to any  representative of a
lender or to any  prospective  purchaser of the Building or Landlord's  interest
therein or (b) within six (6) months of the end of the Term to any  persons  who
may be interested in leasing the Premises.

         Notwithstanding the foregoing, Landlord shall use reasonable efforts to
telephone Tenant  twenty-four (24) hours prior to any inspection except in cases
of  emergencies.  Emergencies for the purpose of this Section shall be deemed to
mean anyone or anything in the Premises,  Building  and/or Common Area requiring
immediate response.  In any event, Tenant agrees to cooperate when access to the
Premises is requested by Landlord.

         31.  Intentionally Omitted.

         32.  BROKERS, COMMISSIONS, ETC.

         Landlord  and Tenant  acknowledge,  represent  and warrant  each to the
other that,  except as listed in Section  1.F.,  no broker or real estate  agent
brought  about or was involved in the making of this Lease and that no brokerage
fee or commission is due to any other party as a result of the execution of this
Lease.  Each of the parties  hereto  agrees to indemnify  and hold  harmless the
other against any claim by any broker,  agent or finder based upon the execution
of this  Lease and  predicated  upon a breach of the  above  representation  and
warranty.

         Notwithstanding the forgoing, Landlord and Tenant acknowledge and agree
that Landlord shall not be  responsible or liable for any brokerage  commissions
resulting from this Lease.

<PAGE>

         33.  RECORDATION.

         Neither  Landlord nor Tenant shall record this Lease,  any amendment to
this Lease or any other  memorandum  of this  Lease  without  the prior  written
consent of the other party, which consent may be withheld in the sole discretion
of either  party and, in the event such consent is given,  the party  requesting
such consent and  recording  shall pay all transfer  taxes,  recording  fees and
other  charges in connection  with such  recording.  Notwithstanding  the above,
Tenant  covenants  that if at any time the  recordation  of this Lease  shall be
required  by any valid  governmental  order,  or if any  governmental  authority
having  jurisdiction  in the  matter  shall  assess and be  entitled  to collect
transfer taxes,  documentary stamp taxes, or both, on this Lease,  Tenant,  upon
the request of Landlord, shall execute such instruments,  including a Memorandum
of this Lease,  as may be  necessary  to record  this  Lease,  and shall pay all
recording fees,  transfer taxes and documentary  stamp taxes,  payable on, or in
connection  with,  this  Lease  or  such  recordation;   provided,  however,  if
Landlord's  Mortgagee  requires such  recordation,  Landlord  shall pay all such
recording fees, transfer taxes and documentary stamp taxes.

         34.  MISCELLANEOUS.

         34.1.  Separability.  If any  term or  provision  of this  Lease or the
application  thereof to any person or  circumstance  shall,  to any  extent,  be
invalid or unenforceable, the remainder of this Lease or the application of such
term or provision to persons or circumstances other than those as to which it is
held invalid or unenforceable,  shall not be affected thereby, and each term and
provision  of this Lease shall be valid and  enforceable  to the fullest  extent
permitted by law.

         34.2.  Applicable Law.  This Lease shall be given  effect and construed
by application of the laws of the state where the Property is located, and any
action or proceeding arising hereunder shall be brought in the courts of the
State where the Premises are located.

         34.3. Authority. If Tenant is a corporation or partnership,  the person
executing this Lease on behalf of Tenant  represents and warrants that Tenant is
duly organized and validly existing;  that this Lease has been authorized by all
necessary  parties,  is validly  executed by an  authorized  officer or agent of
Tenant and is binding upon and enforceable against Tenant in accordance with its
terms.

         The  undersigned  agent of Landlord  represents and warrants that it is
authorized  and  empowered  to enter into this Lease  Agreement on behalf of the
Landlord.

         34.4. No  Discrimination.  It is  Landlord's  policy to comply with all
applicable state and federal laws prohibiting discrimination in employment based
on race,  age, color,  sex,  national  origin,  disability,  religion,  or other
protected  classification.  It is further  intended  that the Building  shall be
operated so that all perspective tenants thereof, and all customers,  employees,
licensees and invitees of all tenants shall have equal opportunity to obtain all
the goods, services,  accommodations,  advantages,  facilities and privileges of
the Building without  discrimination  because of race, age, color, sex, national
origin,  disability,  or religion. To that end, Tenant shall not discriminate in
the conduct and operation of its business in the Premises  against any person or
group of persons because of the race, age, color, sex, religion, national origin
or other protected classification of such person or group of persons.

         34.5.  Integration  of  Agreements.  This  writing is  intended  by the
parties as a final expression of their agreement and is a complete and exclusive
statement of its terms, and all negotiations, considerations and representations
between the parties hereto are incorporated  herein. No course of prior dealings
between  the  parties  or  their  agents  shall be  relevant  or  admissible  to
supplement,  explain, or vary any of the terms of this Lease.  Acceptance of, or
acquiescence to, a course of performance  rendered under this Lease or any prior
agreement  between  the  parties  or  their  agents  shall  not be  relevant  or
admissible  to  determine  the meaning of any of the terms or  covenants of this
Lease.  Other than as specifically set forth in this Lease, no  representations,
understandings or agreements have been made or relied upon in the making of this
Lease.  This  Lease  can only be  modified  by a  writing  signed by each of the
parties hereto.

<PAGE>

         34.6. Third Party Beneficiary.  Except as expressly  provided elsewhere
in this Lease, nothing contained in this Lease shall be construed so as to
confer upon any other party the rights of a third party beneficiary.

         34.7.  Captions;  Gender.  The  captions  used  in this  Lease  are for
convenience only and do not in any way limit or amplify the terms and provisions
hereof.  As used in this Lease and where the context so  requires,  the singular
shall be deemed to  include  the  plural  and the  masculine  shall be deemed to
include the feminine and neuter, and vice versa.

         34.8. Successors and Assigns. Subject to the express provisions of this
Lease to the contrary  (e.g.,  Section 25), the terms,  provisions and covenants
contained  in this Lease shall apply to, inure to the benefit of, and be binding
upon the parties hereto and their respective  heirs,  personal  representatives,
successors and assigns.

         34.9. Waiver of Jury Trial.  Landlord and Tenant hereby expressly waive
trial by jury in any  action or  proceeding  or  counterclaim  brought by either
party  hereto  against  the other  party on any and every  matter,  directly  or
indirectly  arising  out of or with  respect to this Lease,  including,  without
limitation,  the  relationship of Landlord and Tenant,  the use and occupancy by
Tenant of the Premises,  any  statutory  remedy and/or claim of injury or damage
regarding this Lease.

         34.10. Joint and Several  Liability.  In the event that two (2) or more
persons (i.e.,  natural persons,  corporations,  partnerships,  associations and
other legal  entities)  shall sign this Lease as Tenant,  the  liability of each
such party to pay all rents due hereunder and perform all the other covenants of
this  Lease  shall be joint  and  several.  In the  event  Tenant  is a  general
partnership  or a limited  partnership  with two or more general  partners,  the
liability of each partner,  or general partner,  under this Lease shall be joint
and several.

         34.11.  Notices. All notices,  demands and requests required under this
Lease shall be in writing.  All such  notices,  demands  and  requests  shall be
deemed to have been  properly  given if sent by United  States  certified  mail,
return receipt  requested,  postage  prepaid,  or hand  delivered,  or overnight
delivery,  addressed to Landlord or Tenant,  at the Landlord  Notice Address and
Tenant  Notice  Address,  respectively.  Either party may  designate a change of
address by written  notice to the other  party,  in the manner set forth  above.
Notice,  demand and  requests  which  shall be served by  certified  mail in the
manner  aforesaid,  shall be  deemed  to have been  given  three (3) days  after
mailing.  Notices sent by overnight  delivery shall be deemed to have been given
the day  after  sending.  Without  intending  to  limit  the  generality  of the
foregoing  requirement  that all  notices,  demands and  requests be in writing,
there are certain  provisions  in this Lease  where,  for emphasis  alone,  such
requirement is reiterated.

         34.12.  Effective Date of this Lease.  Unless otherwise expressly
provided, all terms, conditions and covenants by Tenant contained in this Lease
shall be effective as of the date first above written.

<PAGE>

         34.13.   Mechanics'   Liens.  In  the  event  that  any  mechanics'  or
materialmen's  liens shall at any time be filed against the Premises  purporting
to be for work, labor, services or materials performed or furnished to Tenant or
anyone holding the Premises through or under Tenant, Tenant shall cause the same
to be  discharged  of record or bonded  within thirty (30) days after the filing
thereof.  If Tenant  shall  fail to cause such lien to be  discharged  or bonded
within thirty (30) days after the filing thereof, then, in addition to any other
right or remedy of  Landlord,  Landlord  may,  but  shall not be  obligated  to,
discharge  the same by paying  the amount  claimed to be due;  and the amount so
paid by Landlord,  and all costs and expenses,  including reasonable  attorneys'
fees incurred by Landlord in procuring the discharge of such lien,  shall be due
and payable by Tenant to Landlord,  as Additional  Rent, on the first day of the
next succeeding month.  Notice is hereby given that Landlord shall not be liable
for any  labor  or  materials  furnished  to  Tenant  upon  credit  and  that no
mechanics',  materialmen's  or other liens for any such labor or materials shall
attach to or affect the estate or  interest  of  Landlord in and to the land and
improvements of which the Premises are a part.

         34.14.  Waiver of Right of Redemption.  Tenant hereby  expressly waives
(to the extent  legally  permissible)  for itself and all persons  claiming  by,
through or under it, any right of  redemption  or right to restore the operation
of  this  Lease  under  any  present  or  future  law in  the  event  Tenant  is
dispossessed  for any  proper  cause,  or in the  event  Landlord  shall  obtain
possession  of the  Premises  pursuant  to  the  terms  of  this  Lease.  Tenant
understands  that the Premises are leased  exclusively for business,  commercial
and  mercantile  purposes  and  therefore  shall  not be  redeemable  under  any
provision of law.

         34.15. Mortgagee's Performance.  If requested by any Mortgagee,  Tenant
shall give such  Mortgagee  written notice of any default by Landlord under this
Lease and a reasonable  opportunity  to cure such  default.  Tenant shall accept
performance of any of Landlord's  obligations  hereunder by any ground lessor or
mortgagee relating to the financing of the Property.

         34.16.  Mortgagee's Liability.  No mortgagee or ground lessor relating
to the financing of the Property, not in possession of the Premises or the
Building, shall have any liability whatsoever hereunder.

         34.17.  Schedules.  Each  writing or plat  referred  to herein as being
attached hereto as a schedule or exhibit is hereby made a part hereof,  with the
same full force and effect as if such writing or plat were set forth in the body
of this Lease.

         34.18.  Time of Essence.  Time shall be of the essence of this Lease
with respect to the performance by Tenant of its obligations hereunder.

         34.19.  Amendment.  This  Lease  may  be  amended  by  and  only  by an
instrument  executed and delivered by each party  hereto.  No amendments of this
Lease  entered  into by  Landlord  and Tenant,  as  aforesaid,  shall  impair or
otherwise  affect the  obligations  of any  guarantor  of  Tenant's  obligations
hereunder,  all of which  obligations  shall remain in full force and effect and
pertain equally to any such  amendments,  with the same full force and effect as
if the substance of such amendments was set forth in the body of this Lease.

         34.20.  Attorneys'  Fees.  Should Tenant file suit against  Landlord in
order to enforce  any of its rights  under this  Lease,  then,  provided  Tenant
prevails,  Landlord  shall be  responsible  for  Tenant's  costs  of said  suit,
including reasonable  attorneys' fees, as such fees are determined by a court of
competent jurisdiction.

<PAGE>

         34.21.  Contingencies.

(A) Premises. Tenant acknowledges and understands that the Premises is currently
occupied by The Ryland Group, Inc.  ("Ryland") and that this Lease is contingent
upon Ryland vacating, surrendering, and releasing the Premises.

         Landlord  shall not be liable  for any delay in the Lease  Commencement
Date as a result of  Ryland's  failure  to  vacate  the  Premises.  In the event
Landlord shall not recapture the Premises by November 30, 2000, this Lease shall
become null and void and of no force and effect.

(B)  Lender's   Approval.   Tenant   acknowledges   and  understands   that  the
effectiveness  of this Lease is contingent upon Landlord  receiving the approval
of its lender.

         34.22.  Existing  Lease.  Landlord and Tenant agree that this Lease and
the terms, covenants and provisions contained herein shall be in addition to and
shall not  supersede or replace any of the terms,  covenants  and  provisions of
that existing Lease between Landlord and Tenant dated January 9, 1996 ("Existing
Lease").  Both parties  agree that the terms,  covenants  and  conditions of the
Existing  Lease shall  remain the same and continue in full force and effect and
shall be deemed unchanged.

         34.23.  Parking.  During the Term,  Landlord  shall provide  unreserved
parking for Tenant and its  employees  and  customers  either in  structured  or
surface  parking  areas near the Building at a ratio of four (4) parking  spaces
per one thousand (1,000) square feet of Rental Area at no additional charge.

<PAGE>

         IN WITNESS  WHEREOF,  the parties hereto have executed this Lease as of
the day and year first above written.

ATTEST:  LANDLORD:
                                   SEVENTY COLUMBIA CORP CTR LIMITED PARTNERSHIP

                                   By: ROUSE PROPERTY MGMT, INC., Managing Agent

/s/Signature                      By: /s/Signature                 (SEAL)
----------------------------          -----------------------------
Assistant Secretary                   Vice President

ATTEST:  TENANT:
                                   EXCALIBUR TECHNOLOGIES CORP.

/s/Nancy McKinley                 By: /s/James Buchanan            (SEAL)
----------------------------          -----------------------------
Secretary of Corporation           President

<PAGE>

                       MARYLAND FULL-SERVICE OFFICE LEASE

                       SEVENTY COLUMBIA CORPORATE CENTER

                                 by and between

        SEVENTY COLUMBIA CORPORATE CENTER LIMITED PARTNERSHIP, Landlord

              by ROUSE PROPERTY MANAGEMENT, INC., Managing Agent,

                                      and

                      EXCALIBUR TECHNOLOGIES CORP., Tenant

<PAGE>

SCHEDULE C

RULES AND REGULATIONS

         1.  Tenant  shall not  obstruct  the Common  Area,  and the  sidewalks,
driveways, and other public portions of the Property (herein "Public Areas") and
such  Public  Areas  shall not be used for any  purpose  other than  ingress and
egress to and from its Premises.  Fire exits and stairways are for emergency use
only, and they shall not be used for any other purpose.

           2. No awnings or other  projections  shall be attached to the outside
walls of the Building. No curtains,  blinds, shades or screens shall be attached
to, hung in, or used in connection with any window or door of the Premises.

         3.  Except as  otherwise  provided  in the  Lease,  no sign,  insignia,
advertisement,  lettering, notice or other object shall be exhibited, inscribed,
painted or  affixed by Tenant on any part of the  exterior  or  interior  of the
Premises or the Building.

         4. No bicycles,  vehicles,  animals  (except seeing eye dogs),  fish or
birds of any kind shall be brought into or kept in or about the Premises.

         5. Nothing  shall be done which would  impair or interfere  with any of
the HVAC,  plumbing,  electrical,  structural  components  of the  Building.  No
flammable,  combustible or explosive fluid, chemical or substance may be kept on
the Premises.

         6. No additional locks or bolts of any kind shall be placed upon any of
the doors or windows by  Tenant,  nor shall any  changes be made in locks or the
mechanism thereof. Tenant shall, upon the termination of the Lease, turn over to
Landlord all keys to stores, offices and restrooms.  In the event of the loss of
any keys  furnished  by  Landlord,  Tenant  shall  pay to  Landlord  the cost of
replacement  locks and Tenant  hereby  agrees to pay said cost to  Landlord,  as
Additional Rent, promptly upon demand.

         7. No delivery or moving of any safes, freight, furniture, packages,
boxes, crates or any other such object shall take place between 8:30 a.m. and
5:30 p.m., Monday through Friday.

         No hand  trucks  shall be used for such  moving  activities  except for
those equipped with rubber tires and side guards.

         8. Tenant shall not use or occupy its  Premises,  or permit any portion
thereof to be used or occupied for any use which  constitutes a nuisance,  or is
hazardous,  or, in  Landlord's  opinion,  likely to injure the  reputation  of a
first-class building.

         9.  Tenant  shall  turn off all  lights,  copying  machines  and  other
electrical  equipment  when the  Premises  are  vacant.  All  entrance  doors in
Tenant's Premises shall be kept locked when not in use. Entrance doors shall not
be left open at any time.

<PAGE>

         10.  If  Tenant  shall  request  Landlord  to  perform  any work on the
Premises or Property,  Tenant shall make such request at the  management  office
for the Building.  Tenant shall not request employees of Landlord to perform any
work or do  anything  outside of their  regular  duties,  unless  under  special
instructions from Landlord.

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

         12.  Tenant  shall not cause or permit  any odors of  cooking  or other
processes,  or any unusual or objectionable  odors, to emanate from its Premises
which  would  annoy  other  tenants or create a public or private  nuisance.  No
cooking  shall be done in Tenant's  Premises,  except for a household  microwave
oven or as is expressly permitted in the Lease.

         13. No contract of any kind  involving the care and  maintenance of the
Premises  shall be entered into by Tenant  without the prior written  consent of
Landlord.  Further,  no vending  machine of any kind shall be  installed  in the
Building  or on or about the  Property  without  the prior  written  consent  of
Landlord.

         Landlord  shall not be  responsible  to Tenant for any loss of property
from its Premises  however  occurring,  or for any damage done to the effects of
Tenant by Landlord's janitors or any of its employees, or by any other person or
any other cause.

         14.  All electrical work must be in accordance with code and is subject
to Landlord's review and approval.

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

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

                  (b) the right to change the name or address of the  Building,
                      without incurring any liability to Tenant for so doing;

                  (c) the right to install and maintain a sign or signs on the
                      exterior of the Building;

                  (d) the exclusive right to use the roof of the Building;

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

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

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

<PAGE>

         17.  Tenant shall not permit  undue  accumulations  of garbage,  trash,
rubbish or any other refuse,  and will keep such refuse in proper  containers in
the  interior  of the  Tenant's  Premises  or  other  places  designated  by the
Landlord.

         18.  Tenant shall not conduct or permit any  bankruptcy  sales,  unless
directed by order of a court of competent  jurisdiction,  or any fictitious fire
or going out of business sale.

         19.  Landlord  shall  have the  right to close  and  securely  lock the
Building  during  generally  accepted  holidays  and during  such other times as
Landlord  may, in its sole  discretion,  deem  advisable for the security of the
Building  and its tenants.  Landlord  shall give Tenant  twenty-four  (24) hours
notice  before  so  closing  and  securely  locking  the  Building  except in an
emergency.

         20.  Landlord  reserves the right to rescind,  alter,  waive or add any
rule or regulation at any time  prescribed  for the Building when Landlord deems
it necessary or desirable for the reputation, safety, character, security, care,
appearance or interests of the Building, the preservation of good order therein,
the operation or  maintenance of the Building or the equipment  thereof,  or the
comfort of tenants or others in the Building. No rescission,  alteration, waiver
or addition of any rule or  regulation  with respect to one tenant shall operate
as a rescission, alteration or waiver in respect of any other tenant.

<PAGE>

SCHEDULE X

METHOD OF BUILDING MEASUREMENT FOR OFFICE SPACE

I.  SINGLE-TENANCY FLOORS

         The Rental Area of a single-tenancy  floor shall be the area within the
outside walls  computed by measuring from the inside surface of the window glass
to the  inside  surface of the  opposite  window  glass  including  columns  and
projections  necessary  to the  building as well as  accessory  areas within and
exclusively  serving  only that  floor,  with their  enclosing  walls,  toilets,
janitors closets,  electrical closets,  air-conditioning rooms and fan rooms and
telephone closets, together with four percent (4%) of the sum so determined as a
"Common Area Factor".  Rental Area will not include  penetrations made by public
stairs, fire towers,  public elevator shafts,  flues, vents, stacks, pipe shafts
and vertical ducts.

II.  DIVIDED FLOORS

         The Rental Area of an individual office or a portion of a divided floor
shall be the area  computed by measuring  from the inside  surface of the window
glass to the finished  surface of the corridor side of corridor  partitions  and
from  center  to  center of the  partitions  that  separate  the  Premises  from
adjoining  Rental  Areas  including  columns and  projections  necessary  to the
Building  together  with  twelve  percent  (12%) of the sum so  determined  as a
"Common Area Factor".THE CRESCENT AT PRIMERA, BUILDING FOUR
                         LEASE SUMMARY

LEASE DATE:    May 17, 1999

LANDLORD: Crescent Resources, Inc., a South Carolina corporation

NOTICE:                 Post  Office Box 1003 [zip code  28201-1003]
                        (If delivered by mail)
ADDRESS OF LANDLORD     400  South Tryon Street, Suite  1300
                        [zip  code 28202] (If personally delivery or
                                           overnight service or telegram)
                        Charlotte, North Carolina
               Attention: Regional Vice PresidentTelephone: (704) 382-8009
                                                Facsimile:  (704) 382-6385

COPY TO:       Crescent Resources, Inc.
               605 Crescent Executive Court, Suite 112
               Lake Mary, Florida 32746
               Attention:  Property Manager   Telephone: (407)804-1200
                                              Facsimile: (407)804-1222

COPY TO:       Pohl & Short, P.A.
               280 West Canton Avenue, Suite 410
               Winter Park, Florida  32789
               Attention:  John R. Simpson, Jr., Esquire
                                              Telephone: (407)647-7645
                                              Facsimile: (407)647-2314

TENANT:        Bairnco Corporation, a Delaware corporation

NOTICE         Bairnco Corporation
ADDRESS OF     2251 Lucien Way, Suite 300
TENANT:        Maitland, Florida  32751

               Attention:      James W. Lambert,Telephone: (407) 875-2222
                                                Facsimile: (407) 875-3398

COPY TO:       Holland & Knight, LLP
               Two South Orange Avenue
               Orlando, Florida 32801
               Attn:  Christopher Brockman, EsquireTelephone: (407) 244-1100
                                                Facsimile:  (407) 244-5288

BUILDING:                        Office  building  known  as  The
               Crescent at Primera, Building Four, located on the
               Land  (at  300  Primera  Boulevard  ,  Lake  Mary,
               Florida).

LAND:                           That  certain tract or parcel  of
               land  located in Lake Mary, Florida, and described
               on  Exhibit  A  attached hereto  and  incorporated
               herein by reference.

PREMISES:                       Suite 432 on the fourth floor  of
               the  Building, as more particularly  described  on
               Exhibit B attached hereto and incorporated  herein
               by  reference.  The Premises Net Rentable Area and
               the  Premises Net Usable Area described below  are
               estimates.   Upon  completion of the  final  space
               plan  for  the Premises, the actual Rentable  Area
               and  Usable Area shall be calculated in accordance
               with  the  measurement method promulgated  by  the
               Building  Owners  and Managers Association  (BOMA)
               based  upon  a  common  area  factor  of  thirteen
               percent (13%).  The Premises Net Rentable Area and
               the  Premises  Net  Usable  Area  shall  then   be
               adjusted  and determined in accordance  with  such
               calculations  and  all other  provisions  of  this
               Lease  which  are  based  upon  the  Premises  Net
               Rentable  Area  or the Premises  Net  Usable  Area
               shall  likewise be adjusted.  Landlord and  Tenant
               shall  execute  an  amendment  to  this  Lease  to
               evidence all such adjustments.

PREMISES NET
RENTABLE
AREA:                           11,241 square feet located on the
               fourth   floor   in  the  Building,   subject   to
               adjustment as described above.

PREMISES NET
USABLE AREA:   9,948  square feet located on the fourth floor  in
               the  Building, subject to adjustment as  described
               above.

BUILDING NET
RENTABLE AREA:  121,467 square feet, measured in accordance  with
BOMA standards.

LEASE TERM:    Ten  (10)  years,  beginning on  the  Commencement
               Date.  Provided, however, if the Commencement Date
               is  any day other than the first day of a calendar
               month,   the   Lease   Term  shall   be   extended
               automatically until midnight on the  last  day  of
               the   calendar  month  in  which  the  Lease  Term
               otherwise would expire.

COMMENCEMENT
DATE:                          August 15, 1999.

BASE RENTAL:   Period          Annual Rent per         Monthly Rent*
                                       Rentable Square Foot

               Year One           $19.25              $18,032.44
               Year Two           $19.65              $18,407.14
               Year Three         $20.06              $18,791.21
               Year Four          $20.48              $19,184.64
               Year Five          $20.91              $19,587.44
               Year Six           $21.36              $20,008.98
               Year Seven         $21.82              $20,439.89
               Year Eight         $22.30              $20,889.53
               Year Nine          $22.78              $21,339.17
               Year Ten           $23.29              $21,816.91

                                      *   - Monthly Rent shall be
               adjusted  upon final measurement of  the  Premises
               Net Rentable Area and evidenced by an amendment to
               this Lease.

RENT
CONCESSION:    Tenant  shall  be  entitled to a  Rent  Concession
               which is equal to the Base Rental payable for  the
               first  four  months of the Lease  Term.   Landlord
               shall provide such Rent Concession by waiving Base
               Rental  for  the first four months  of  the  Lease
               Term.    Accordingly,  the  Advance  Base   Rental
               payment  shall be applied to the rent due for  the
               fifth month of the Lease Term.

BASIC COSTS
EXPENSE STOP:  Shall  mean  the Basic Costs paid or  incurred  by
               Landlord during calendar year 1999, grossed up  to
               reflect  occupancy of 95% of the rentable area  in
               the  Building  for  the  entire  year.   Provided,
               however,  that  the component of the  Basic  Costs
               Expense  Stop  for  real  estate  taxes  for   the
               Building shall be $1.70 multiplied by the Building
               Net  Rentable Area regardless of the  actual  real
               estate taxes for calendar year 1999.  Accordingly,
               no  payment shall be due from Tenant for increases
               in  Basic Costs until calendar year 2000, at which
               time  Tenant  shall pay Landlord for increases  in
               Basic  Costs as described in Paragraph 7  of  this
               Lease.   Tenant  acknowledges  that  the  Premises
               Electrical Expense Stop is 60 cents per rentable square
               foot per year and that Tenant is obligated to  pay
               electrical   expenses   exceeding   the   Premises
               Electrical  Expense Stop pursuant to Paragraph  13
               of   this  Lease.   For  purposes  of  calculating
               Tenant's payment of excess Basic Costs as provided
               in   Paragraph  7  of  this  Lease,  annual  total
               increases   in  "Controllable  Basic  Costs"   (as
               defined   below)  for  calendar  years  2000   and
               thereafter shall be limited to eight percent  (8%)
               of  the  prior  year's Controllable  Basic  Costs.
               "Controllable  Basic Costs" shall mean  the  costs
               incurred  by  Landlord for janitorial service  and
               supplies,    common    area    maintenance     and
               administrative services.  For purposes of applying
               and   calculating  this  limitation,  Controllable
               Basic Costs shall be grossed up, if necessary,  to
               reflect occupancy of 95% of the rentable space  in
               the  Building.   This limitation on  increases  in
               Controllable  Basic Costs shall  apply  to  annual
               increase of total Controllable Basic Costs, not to
               any single component or item of Controllable Basic
               Costs.

PREMISES
ELECTRICAL
EXPENSE STOP:  Sixty  cents (60 cents) multiplied by the Premises  Net
               Rentable Area, per year.

ADVANCE
BASE RENTAL
PAYMENT:                         Nineteen  Thousand  Two  Hundred
               Ninety-Four   and  71/100  Dollars   ($19,294.71),
               including 7% sales tax, payable upon occupancy  of
               the Premises.

SECURITY
DEPOSIT:       Not Applicable.

TENANT
IMPROVEMENTS
ALLOWANCE:     Shall  be $20.00 per rentable square foot  of  the
               Premises   for   space  planning,   architectural,
               mechanical  and  construction  drawings  and  hard
               construction   costs.   The  Tenant   Improvements
               Allowance  shall be applied and paid as  described
               in Paragraph 9 of this Lease.

BROKER:        The Welsh Company (Agent: Greg Morrison)

The   foregoing   summary  (the  "Lease   Summary")   is   hereby
incorporated into and made a part of the Lease Agreement.  In the
event,  however,  of a conflict between the terms  of  the  Lease
Summary  and  the terms of the Lease Agreement, the latter  shall
control.

Initial: RJH (For Landlord)
Initial: JWL (For Tenant)
                       TABLE OF CONTENTS

PARAGRAPH      DESCRIPTION                                   PAGE

 1.            Definitions                                      1

 2.            Lease Grant                                      3

 3.            Lease Term                                       4

 4.            Use                                              5

 5.            Base Rental                                      5

 6.            Adjustments to Base Rental                       6

 7.            Adjustments for Increase in Basic Costs          6

 8.            Services to Be Furnished by Landlord             7

 9.            Construction of Improvements                    10

10.            Maintenance and Repair by Landlord              10

11.            Maintenance and Repair by Tenant                11

12.            Alterations by Tenant                           12

13.            Use of Electrical Services by Tenant            12

14.            Graphics and Signage                            13

15.            Parking                                         13

16.            Compliance with Laws                            14

17.            Building Rules                                  14

18.            Entry by Landlord                               15

19.            Assignment and Subletting                       15

20.            Liens                                           17

21.            Property Insurance                              17

22.            Liability Insurance                             18

23.            Indemnities                                     18

24.            Waiver and Waiver of Subrogation Rights         18

25.            Casualty Damage                                 19

26.            Condemnation                                    19

27.            Damages from Certain Causes                     20

28.            Events of Default/Remedies                      20

29.            Security Deposit                                22

30.            Peaceful Enjoyment                              22

31.            Holding Over                                    22

32.            Subordination to Mortgage                       23

33.            Estoppel Certificate                            23

34.            Attorneys' Fees                                 23

35.            No Implied Waiver                               24

36.            Personal Liability                              24

37.            Notices                                         24

38.            Severability                                    25

39.            Recordation                                     25

40.            Governing Law                                   25

41.            Force Majeure                                   25

42.            Time of Performance                             26

43.            Transfers by Landlord                           26

44.            Commissions                                     26

45.            Effect of Delivery of this Lease                26

46.            Real Estate Investment Trust                    26

47.            Hazardous Materials                             27

48.            Landlord's Right of Relocation                  27

49.            Evidence of Authority                           27

50.            Survival of Obligations                         28

51.            Confidentiality                                 28

52.            Contractual Landlord's Lien                     28

53.            Rent a Separate Covenant                        28

54.            Radon                                           28

55.            Miscellaneous Provisions                        28

56.            Special Stipulations                            29

57.            Waiver of Jury Trial                            29

EXHIBITS

  A            Description of Land
  B            Designation of Premises
  C            Construction of Improvements
  D            Cleaning and Janitorial Services
  E            Rules and Regulations
  F            Special Stipulations - Not Applicable.
  G            Guaranty of Lease - Not Applicable.
  H            Commencement Date Stipulation
    I              Preliminary  Tenant  Improvements  Plans   and
Specifications

                        LEASE AGREEMENT

     THIS LEASE AGREEMENT (this "Lease") is made and entered into
on the date and between the Landlord and Tenant identified in the
Lease Summary.

                          WITNESSETH:

     1.   Definitions.

Capitalized  terms  appearing  in  this  Lease,  unless   defined
elsewhere in this Lease or in the Lease Summary, shall have these
definitions:

      (a)   "Additional  Rent" shall mean all sums  of  money  in
addition to Base Rental which shall become due from Tenant  under
this Lease, including, without limitation, Tenant's Proportionate
Share  of Basic Costs in excess of the Basic Costs Expense  Stop,
as set forth in Paragraph 7 herein.

     (b)  "Adjustment Date" is not applicable.

      (c)   "Advance Base Rental Payment" shall have the  meaning
set forth in the Lease Summary.

     (d)  "Base Rental" during the Lease Term shall be the amount
so  designated  in  the Lease Summary, as same  may  be  adjusted
pursuant  to  the terms of this Lease, together  with  all  taxes
(excise,  sales,  use  or  other)  levied  or  assessed  by   any
governmental entity on Base Rental, Additional Rent or any  other
sums payable by Tenant under this Lease.

      (e)   "Basic  Costs" shall mean and include:  all  expenses
relating to the Building and the Building Exterior Common  Areas,
including  all  costs  of operation, maintenance  and  management
thereof  and  assessments for public betterments or improvements,
any  and  all  assessments or charges that  are  charged  by  any
property  owners association applicable to the Land,  ad  valorem
real  estate taxes and any other tax on real estate as  such,  ad
valorem taxes on furniture, fixtures, equipment or other property
used  in connection with the operation, maintenance or management
of  the  Building and the Building Exterior Common Areas and  the
costs, including, without limitation, legal and consulting  fees,
of contesting or attempting to reduce any of the aforesaid taxes,
reasonable  amortization  of  capital  improvements   which   are
required  by applicable law or which will improve the  efficiency
of  operating, managing or maintaining the Building or which will
reduce  Basic Costs or the rate of increase thereof, the cost  of
labor, materials, repairs, insurance, utilities and services  and
such  other  expenses with respect to the operation,  maintenance
and  management of the Building and the Building Exterior  Common
Areas, all of which expenses shall be incurred or paid by  or  on
behalf  of  Landlord  or  are properly chargeable  to  Landlord's
operating   expenses   in  accordance  with  generally   accepted
accounting  principles  as applied to the operation,  maintenance
and management of a first class office building.

      Notwithstanding the foregoing, it is agreed that the  Basic
Costs  shall  not include: any leasing or marketing or  brokerage
costs,  fees,  or  commissions; any cost of upfitting  space  for
occupancy  by tenants; any amortization of principal or  interest
on account of any indebtedness; any legal expenses arising out of
any  misconduct or negligence of Landlord or any person for which
Landlord  is  responsible or arising out of dealings between  any
principals  constituting Landlord or arising out of any  leasing,
sale  or  financing of the Building or the Land or  any  part  of
either  of  them;  or, except as expressly permitted  above,  any
amortization or depreciation.

      (f)   "Basic  Costs Expense Stop" shall be  the  amount  so
designated in the Lease Summary.

     (g)  "Broker" shall be the party or parties so designated in
the Lease Summary.

      (h)   "Building" shall have the meaning set  forth  in  the
Lease Summary.

      (i)   "Building Exterior Common Areas" shall mean  (A)  the
exterior  of  the Building and all of the improvements  and  real
property on the Land, including, without limitation, all  parking
areas,  enclosed or otherwise, and all streets, sidewalks,  signs
and  landscaped areas located on or within the Land; and (B)  all
signs  and  landscaped  areas  located  in  public  rights-of-way
directly  contiguous  to the Land if and to the  extent  Landlord
maintains such signs and landscaped areas from time to time.

     (j)  "Building Net Rentable Area" shall have the meaning set
forth in the Lease Summary.

      (k)   "Building Shell Improvements" shall mean the Building
improvements  constructed or to be constructed  by  Landlord,  at
Landlord's sole cost and expense and without applying any of  the
Tenant  Improvements Allowance. The Building  Shell  Improvements
are  more particularly described in Exhibit C attached hereto and
incorporated herein by reference.

      (l)  "Commencement Date" shall mean that date set forth  in
the  Lease  Summary,  as  same may be adjusted  pursuant  to  the
provisions of Paragraph 3 herein.

      (m)   "Common  Areas"  shall mean those  areas  within  the
Building   devoted  to  corridors,  elevator  foyers,  restrooms,
mechanical  rooms, janitorial closets, electrical  and  telephone
closets, vending areas and other similar facilities provided  for
the common use or benefit of tenants generally and/or the public,
including  any  columns and/or projections  located  within  said
areas.

      (n)   "Premises  Electrical Expense Stop"  shall  have  the
meaning  set forth in the Lease Summary. The Premises  Electrical
Expense Stop covers the annual cost of electricity to be supplied
to  the Premises (i) to operate lights and light fixture therein,
(ii)  to  operate  equipment and fixtures that are  connected  to
electrical  outlets therein and (iii) to operate any HVAC  system
or  unit  that  exclusively serves the Premises (or  any  portion
thereof).

     (o)  Intentionally deleted.

      (p)   "Force  Majeure Matters" is defined in  Paragraph  41
herein.

      (q)   "Land"  shall mean the real property upon  which  the
Building is situated as more particularly described on Exhibit  A
hereto.

      (r)  "Lease Term" shall mean the term of this Lease as  set
forth in the Lease Summary.

      (s)   "Premises" shall have the meaning set  forth  in  the
Lease Summary.

     (t)  "Premises Net Rentable Area" shall have the meaning set
forth in the Lease Summary.

      (u)  "Premises Net Usable Area" shall have the meaning  set
forth in the Lease Summary.

     (v)  "Tenant Improvements" shall mean the improvements to be
constructed  and installed in the Premises (beyond  the  Building
Shell  Improvements)  in accordance with the Tenant  Improvements
Plans  and  Specifications, the terms of Paragraph 9  herein  and
Exhibit C attached hereto.

       (w)   "Tenant  Improvements  Allowance"  shall  mean   the
allowance  to  be  provided  by  Landlord  to  Tenant   for   the
construction of the Tenant Improvements. The amount of the Tenant
Improvements Allowance is set forth in the Lease Summary.

      (x)   "Tenant Improvements Plans and Specifications"  shall
mean  the plans and Specifications" for the construction  of  the
Tenant  Improvements,  which plans and  specifications  shall  be
prepared pursuant to Exhibit C attached hereto.

     (y)  "Tenant's Proportionate Share" means that fraction, the
numerator  of  which is the Premises Net Rentable  Area  and  the
denominator of which is the Building Net Rentable Area.

     2.   Lease Grant.

      Landlord hereby leases to Tenant, and Tenant hereby  leases
from  Landlord,  upon  and subject to the covenants,  agreements,
provisions and conditions of this Lease, the Premises located  in
the Building.

     3.    Lease Term.

     This Lease shall continue in force during a period beginning
on  the Commencement Date and continuing until the expiration  of
the  Lease  Term,  unless  this Lease  is  sooner  terminated  or
extended  to  a  later  date under any other  term  or  provision
herein. Subject to delays resulting from Force Majeure Matters or
delays   caused   by   Tenant  or  Tenant's  agents,   employees,
contractors,  subcontractors  or  licensees,  including,  without
limitation,  change orders to the Tenant Improvements  Plans  and
Specifications  ("Tenant Delay Factors"), Landlord  will  deliver
the  Premises to Tenant not later than the Commencement Date  set
forth  in  the  Lease  Summary or 120 days after  issuance  of  a
building permit for the Tenant Improvements, whichever is  later,
(the  "Target  Commencement Date"), with the Tenant  Improvements
substantially   completed   in   accordance   with   the   Tenant
Improvements  Plans  and  Specifications,  as  evidenced   by   a
certificate  of occupancy issued for the Premises by  appropriate
local  government and by a certificate of substantial  completion
issued  by  Landlord's architect or other designated  engineering
representative.  If  Landlord for any  reason  whatsoever  cannot
deliver  possession of the Premises to Tenant  (with  the  Tenant
Improvements  substantially  completed  in  accordance  with  the
Tenant Improvements Plans and Specifications) not later than  the
Target  Commencement  Date,  this Lease  shall  not  be  void  or
voidable nor shall Landlord be liable to Tenant for any  loss  or
damage resulting therefrom except as described below; but in that
event,  Landlord  shall  act diligently  and  in  good  faith  to
complete the work that is necessary to allow Landlord to  deliver
the  Premises to Tenant as specified above. In such case, (a)  if
Landlord's  failure  to deliver possession  of  the  Premises  to
Tenant  (with the Tenant Improvements substantially completed  in
accordance with the Tenant Improvements Plans and Specifications)
by the Target Commencement Date is not the result, in whole or in
part, of one or more Tenant Delay Factors, the Commencement  Date
shall  be  adjusted  to be the date when Landlord  does  in  fact
deliver  possession of the Premises to Tenant as described  above
and  Landlord  shall  pay delay damages to  Tenant  as  described
below, and (b) if Landlord's failure to deliver possession of the
Premises  to  Tenant (with the Tenant Improvements  substantially
completed  in accordance with the Tenant Improvements  Plans  and
Specifications) by the Target Commencement Date is the result, in
whole  or  in  part,  of one or more Tenant  Delay  Factors,  the
Commencement  Date  shall  be  the  later  of  (i)   the   Target
Commencement Date or (ii) the date the Tenant Improvements  would
have  been substantially completed in the absence of such  Tenant
Delay Factors(s) and no delay damages shall be payable to Tenant.
Landlord shall have one hundred twenty (120) days after the Lease
Date  to  obtain  a building permit for the Tenant  Improvements.
Thereafter, Landlord shall have an additional one hundred  twenty
(120)  days  to complete construction of the Tenant Improvements.
If   Landlord   cannot  complete  construction  of   the   Tenant
Improvements  and  deliver possession of the Premises  to  Tenant
within  two  hundred forty (240) days after the Lease  Date  (the
"Delivery  Deadline"), which Delivery Deadline shall be  extended
by  Force  Majeure  Matters  and by Tenant  Delay  Factors,  then
Landlord  shall pay delay damages to Tenant equal to one  day  of
Base  Rental  for each one day of delay for the period  from  the
Delivery  Deadline  through  the  date  that  possession  of  the
Premises  is  delivered  to Tenant with the  Tenant  Improvements
completed.   Such  delay damages shall, at  Landlord's  election,
either  be paid in cash to Tenant or as a credit against  monthly
payments of Base Rental otherwise due hereunder.

      Within  five (5) days following Tenant's occupancy  of  the
Premises,  Tenant shall execute and deliver to Landlord duplicate
originals of a stipulation in the form attached to this Lease  as
Exhibit  H  (with  the  blanks properly  completed).  Subject  to
Landlord's approval of the information inserted by Tenant in  the
blanks,  Landlord  shall execute the duplicate originals  of  the
stipulation  and  shall promptly return one  (1)  fully  executed
original  to Tenant.  Punchlist items identified by agreement  of
Landlord and Tenant shall be completed by Landlord within  thirty
(30) days after the Commencement Date.

     4.   Use.

      The  Premises shall be used for office purposes and for  no
other purposes. Tenant agrees not to use or permit the use of the
Premises  for  any purpose that is illegal or is in violation  of
any   applicable   legal,   governmental  or   quasi-governmental
requirement,  ordinance or rule, or that, in Landlord's  opinion,
creates a nuisance, disturbs any other tenant of the Building  or
injures the reputation of the Building.

     5.   Base Rental.

     (a)  Tenant agrees to pay during the Lease Term to Landlord,
without  any setoff or deduction, except as provided herein,  the
Base Rental, and all such other sums of money as shall become due
hereunder  as Additional Rent, all of which are sometimes  herein
collectively  called  "rent"  or "Rent."  Base  Rental  for  each
calendar  year or portion thereof during the Lease Term, together
with  any  applicable adjustment thereto pursuant to Paragraph  6
herein, shall be due and payable in advance, in twelve (12) equal
installments on the first day of each calendar month  during  the
Lease  Term; provided, however, as set forth in the Lease Summary
and  Paragraph  5(b)  herein, Base  Rental  for  the  fifth  full
calendar  month  during the Lease Term (i.e.,  the  Advance  Base
Rental  Payment) shall be due and payable upon occupancy  of  the
Premises by Tenant. Tenant hereby agrees to pay such Base  Rental
and  any  adjustments thereto to Landlord at  Landlord's  address
provided  herein (or such other address as may be  designated  by
Landlord  in writing from time to time) monthly, in advance,  and
without  demand. If the Lease Term commences on a day other  than
the  first day of a month or terminates on a day other  than  the
last day of a month, then the installments of Base Rental and any
adjustments  thereto for such month or months shall be  prorated,
based on the number of days in such month or months.

      (b)   Upon occupancy of the Premises, Tenant shall  pay  to
Landlord  the Advance Base Rental Payment as additional  security
for Tenant's performance of its obligations under this Lease.  If
Tenant  is  not then in default under this Lease, Landlord  shall
apply  the  Advance  Base Rental Payment to the  payment  of  the
monthly installment of Base Rental due relative to the fifth full
calendar  month  during the Lease Term.  If  Tenant  is  then  in
default under this Lease, Landlord may, at its option, apply  all
or  any  part  of  the Advance Base Rental Payment  to  cure  the
default.  With  regard  to any partial calendar  month  (if  any)
preceding  the first full calendar month during the  Lease  Term,
Tenant  shall pay the applicable prorata portion of  the  monthly
installment  of  Base  Rental  in a  timely  manner  pursuant  to
Paragraph 5(a) herein.

      6.    Adjustments  to Base Rental.  Base  Rental  shall  be
adjusted annually on the anniversary of the Commencement Date  as
provided in the Lease Summary.

     7.   Adjustments for Increases in Basic Costs.

     With respect to each calendar year or portion thereof during
the  Lease  Term  (and any renewal or extension thereof),  Tenant
shall  pay  Landlord as Additional Rent, in the manner  hereafter
provided,  Tenant's Proportionate Share of the  amount  by  which
Basic  Costs  paid  or incurred by Landlord  during  such  period
(grossed  up,  if necessary, to reflect occupancy of  ninety-five
percent (95%) of the rentable space in the Building) exceeded the
Basic  Costs  Expense  Stop. References in this  Paragraph  7  to
"Basic  Costs"  shall be deemed and construed to refer  to  Basic
Costs  as  grossed  up  pursuant  to  the  immediately  preceding
sentence.  If  Tenant  shall be obligated  to  make  payments  as
aforesaid  with  regard to any partial calendar year  during  the
Lease Term, Basic Costs in excess of the Basic Costs Expense Stop
shall be prorated on the basis of the number of days during  such
calendar  year  for  which  Tenant  is  obligated  to  make  such
payments.

      It  is acknowledged and agreed that it will not be possible
to  determine the actual amount of the excess (if any)  of  Basic
Costs over the Basic Costs Expense Stop for a given calendar year
until  after  the  end  of such calendar year.  Therefore,  until
Tenant's  liability  for Tenant's Proportionate  Share  of  Basic
Costs  in excess of the Basic Costs Expense Stop shall have  been
finally  determined for a particular calendar year, Tenant  shall
make payment on account of excess Basic Costs as follows:

      (a)   Commencing as of the Commencement Date and continuing
throughout the Lease Term (and any renewal or extension thereof),
and  subject  to  the limitation expressed above, Landlord  shall
make  a good faith estimate of Basic Costs for such calendar year
and  Tenant's Proportionate Share thereof (hereinafter "Estimated
Basic  Costs" and "Tenant's Estimated Proportionate Share"),  and
Tenant  shall  pay  to  Landlord, as Additional  Rent  with  each
monthly  installment  of Base Rental, an  amount  equal  to  one-
twelfth (1/12) of Tenant's Estimated Proportionate Share  of  the
amount  by  which Estimated Basic Costs for the current  calendar
year  are estimated to exceed the Basic Costs Expense Stop.  Such
payments  for any partial month shall be paid in advance  at  the
daily rate equal to the monthly payment divided by the number  of
days  in the month for which the same is due. On or about January
1  of  each  calendar year in respect of which  Tenant  shall  be
obligated  to  make  payments on account of  excess  Basic  Costs
during  the  Lease  Term (and any renewal or extension  thereof),
Landlord  shall furnish to Tenant a statement for  such  calendar
year  of  Tenant's Estimated Proportionate Share and of Estimated
Basic  Costs and thereupon, subject to the limitations  expressed
above,  as  of  such January 1, Tenant shall make payments  under
this Paragraph 7(a) in accordance with such statement.

      (b)  On or before April 1 in the year following the year in
which  the  Commencement Date occurs and each April 1  thereafter
during  the  Lease  Term (and any renewal or extension  thereof),
Landlord shall furnish Tenant with an itemized statement  setting
forth  the total amount of Basic Costs and Tenant's Proportionate
Share  of  the  amount  by which Basic Costs  for  the  preceding
calendar year exceeded the Basic Costs Expense Stop. If any  such
statement  shall show an overpayment or underpayment of  Tenant's
Proportionate  Share  of  excess Basic Costs  for  the  preceding
calendar  year, any overpayment shall be refunded  to  Tenant  or
credited  against payments due from Tenant under this Lease,  and
the full amount of any underpayment shall be paid to Landlord  by
Tenant  not later than the first day of the first calendar  month
after such statement shall have been delivered to Tenant.

      (c)   In  the  event  Tenant is required  to  pay  Tenant's
Proportionate Share of Basic Costs pursuant to this Paragraph  7,
Tenant  shall  have the right, at Tenant's expense  and  no  more
frequently  than  once per calendar year, to  inspect  Landlord's
books  and  records showing Basic Costs of the Building  for  the
calendar  year in question; provided, however, Tenant  shall  not
have the right to withhold any payments of Tenant's Proportionate
Share  of  Basic Costs due and payable hereunder  the  amount  of
which  may  be in dispute, and Tenant must pay the entire  amount
due and payable hereunder prior to reviewing Landlord's books and
records.  In  the  event an inspection of  Landlord's  books  and
records by any tenant of the Building reveals a verifiable  error
in   Landlord's   computation  of   Basic   Costs   or   Tenant's
Proportionate  Share  of  excess  Basic  Costs  resulting  in  an
overpayment by Tenant of Tenant's Proportionate Share  of  excess
Basic  Costs  (after  allowing for  any  adjustment  pursuant  to
Paragraph  7(b)  herein), Landlord shall promptly  reimburse  the
amount  of  such  overpayment to Tenant, together  with  interest
thereon   from  the  date  of  overpayment  until  the  date   of
reimbursement at a rate per annum equal to one percent (1%)  plus
the  Prime Rate (as defined herein) in effect as of the  date  of
overpayment.  As used in this Lease, the "Prime  Rate"  shall  be
deemed  to  be  that rate of interest announced by Nations  Bank,
N.A.,  or any successor thereto, from time to time as its  "prime
rate,"  and  Landlord and Tenant acknowledge and understand  that
Nations  Bank,  N.A., lends at rates of interest both  above  and
below  the  Prime  Rate. Landlord's statement setting  forth  the
total  amount  of  Tenant's Proportionate Share of  excess  Basic
Costs  furnished to Tenant in accordance with the  provisions  of
this  Paragraph 7 shall be deemed to have been approved by Tenant
unless  protested  by Tenant in writing within ninety  (90)  days
after  delivery of such statement to Tenant at the Premises.   If
the  results  of  Tenant's  inspection of  Landlord's  books  and
records  indicate that the statement for any calendar year  over-
stated  Basic  Costs for such calendar year  by  more  than  five
percent  (5%), Landlord shall pay Tenant the reasonable  cost  of
such inspection.

     8.   Services to Be Furnished by Landlord.

     Landlord agrees to furnish Tenant the following services:

     (a)  Hot and cold water at those points of supply identified
on the Tenant Improvements Plans and Specifications.

      (b)   Except  with regard to any HVAC system or  unit  that
exclusively  serves the Premises (or any portion thereof),  which
shall  be  Tenant's  responsibility pursuant to  Paragraph  11(b)
herein,  Landlord shall furnish central heat and air conditioning
sufficient  for  the  comfortable  occupancy  of  the   Premises.
Provided,  however, central heating and air conditioning  service
at  times other than for "Normal Business Hours" for the Building
(which are 8:00 a.m. to 6:00 p.m. on Mondays through Fridays  and
8:00 a.m. to 1:00 p.m. on Saturdays, exclusive of normal business
holidays identified as New Year's Day, Memorial Day, Independence
Day,  Labor  Day, Thanksgiving Day and Christmas Day),  shall  be
furnished  only  on  the written request of Tenant  delivered  to
Landlord on the following schedule:

          (1)  For evenings Monday through Friday - prior to 3:00
     p.m. on the day when such service is required;

           (2)   For  Saturday  afternoon, Saturday  evening  and
     Sunday - prior to 3:00 p.m. on Friday; and

           (3)  For normal business holidays - prior to the times
     set forth above for the last day prior to such holiday.

The above notwithstanding, upon written request and authorization
from  Tenant, Landlord shall program the energy management system
for  the  Building to give Tenant the ability to control  heating
and  air  conditioning  services to  the  Premises  after  Normal
Business  Hours  without the need for daily notice  to  Landlord.
Tenant  shall bear the entire cost (as Additional Rent)  of  such
additional heating and air conditioning furnished to the Premises
at  times other than Normal Business Hours, and Tenant shall  pay
such costs within ten (10) days following demand by Landlord. The
cost  to  be charged by Landlord to Tenant hereunder for  heating
and  air  conditioning service used by Tenant during times  other
than Normal Business Hours shall be $30.00 per hour per floor  of
the  Building.  Such hourly rate may be increased  from  time  to
time  during  the  Lease  Term only  to  reimburse  Landlord  for
increases  in  the  cost to Landlord of electricity  consumed  in
providing the heating and air conditioning service.  If more than
one   tenant  on  the  same  floor  requests  heating   and   air
conditioning  services after Normal Business  Hours,  the  hourly
charge shall be apportioned among all such tenants.

      If  heat-generating machines or equipment shall be used  in
the  Premises  by  Tenant which affect the temperature  otherwise
maintained by the Building HVAC system, Landlord shall  have  the
right (at Landlord's option) to install (or to require Tenant  to
install) one or more HVAC systems or units that exclusively serve
the  Premises  (or the portion thereof where such heat-generating
machines  or  equipment are located). As set forth  in  Paragraph
11(b) herein, the cost of any such separate HVAC systems or units
that  exclusively  serve  the Premises,  including  the  cost  of
installation  and the cost of operation and maintenance  thereof,
shall be borne by Tenant.

      (c)   Electrical service to serve the Common Areas and  the
Premises, subject to the terms of Paragraph 13 herein.

      (d)  Routine maintenance and electric lighting service  for
all  Common Areas of the Building in the manner and to the extent
deemed by Landlord to be standard.

      (e)   Janitorial service, in accordance with  the  schedule
attached  hereto as Exhibit D, Mondays through Fridays, exclusive
of  normal  business  holidays as described in  subparagraph  (b)
above;  provided,  however, if Tenant's floor covering  or  other
improvements  require  special treatment, Tenant  shall  pay  the
additional cleaning cost attributable thereto as Additional  Rent
upon presentation of a statement therefor by Landlord.

      (f)   All  Building standard fluorescent  and  incandescent
light  bulb  replacement in the Common Areas and all  light  bulb
replacement  in  the  Premises. Provided, however,  Tenant  shall
promptly  pay to Landlord, as Additional Rent, costs incurred  by
Landlord in replacing light bulbs in the Premises (including  the
cost  of  purchasing such light bulbs) if and to the extent  such
replacement  cost  exceeds  the  replacement  cost  for  Building
standard  light  bulbs. As used herein, "Building standard  light
bulbs"  shall be deemed to refer to 2' x 4', 3 lamp  F40/CW  with
energy saving ballasts.

      (g)   Tenant, its employees, and its invitees who have been
registered  with  Landlord  shall have  access  to  the  Premises
(including  elevator  service) by a code or  card  access  system
seven (7) days a week, twenty-four (24) hours a day. Tenant shall
receive  an allotment of codes or cards for all of its  employees
and  for  its invitees who are registered with Landlord. Landlord
shall  bear the cost of each such code or card initially  issued,
provided Tenant shall pay to Landlord (as Additional Rent, within
thirty  (30) days after Tenant receives an invoice therefor)  the
actual  costs  incurred  by  Landlord in  obtaining  and  issuing
replacement codes or cards for codes or cards previously  issued.
Landlord,  however,  shall  have  no  liability  to  Tenant,  its
employees, agents, invitees or licensees for losses due to  theft
or  burglary or for damages done by unauthorized persons  on  the
Premises,  and  Landlord shall not be required to insure  against
any  such  losses. Tenant shall cooperate fully  with  Landlord's
efforts  to  maintain controlled access to and  in  the  Building
during  times  other than Normal Business Hours and shall  follow
all regulations promulgated by Landlord with respect thereto.

      The  failure by Landlord to any extent to furnish,  or  the
interruption or termination of these defined services in whole or
in  part,  resulting from any Force Majeure Matters or  from  any
other causes beyond the reasonable control of Landlord shall  not
(i)  render Landlord liable in any respect, (ii) be construed  as
an  eviction of Tenant, (iii) work an abatement of rent, or  (iv)
relieve  Tenant  from the obligation to fulfill any  covenant  or
agreement in this Lease. Should any of the equipment or machinery
used  in  the provision of such services for any cause  cease  to
function  properly,  Tenant shall have no  claim  for  offset  or
abatement  of  rent or damages on account of an  interruption  in
service   resulting  therefrom.  Landlord  shall  use  its   best
commercial efforts to restore any interrupted services.  If  such
services  are not restored within three (3) business  days  after
such interruption, Tenant may take such action as is necessary to
restore  the  interrupted services and Landlord shall  thereafter
reimburse  Tenant  for the reasonable costs of such  restoration,
and  Tenant  may  pursue  other legal or equitable  remedies  not
otherwise prohibited hereunder.  Amounts payable pursuant to this
Paragraph 8 shall be deemed to be Additional Rent due from Tenant
to Landlord, and any default in the payment thereof shall entitle
Landlord to all remedies provided for herein at law or in  equity
on account of Tenant's failure to pay Base Rental.

     9.   Construction of Improvements.

      (a)   Subject to Force Majeure Matters and consistent  with
the  terms  of Paragraph 3 herein and Exhibit C hereto,  Landlord
shall  pursue diligently and in good faith the completion of  the
Building Shell Improvements and the Tenant Improvements.

      (b)  The Tenant Improvements Allowance shall be applied  by
Landlord   against   the   costs  of  designing,   planning   and
constructing  the  Tenant Improvements. In the  event  the  costs
incurred in connection with the design, planning and construction
of   the  Tenant  Improvements  exceed  the  Tenant  Improvements
Allowance,  Tenant  shall be responsible for bearing  and  paying
such excess costs (the "Excess Costs"), as follows:

           (1)   Tenant  shall  pay  to Landlord,  prior  to  the
     commencement of construction of the Tenant Improvements,  an
     amount equal to fifty percent (50%) of such Excess Costs (as
     then estimated by Landlord).

           (2)  After issuance of a Certificate of Occupancy  for
     the  Tenant  Improvements  but prior  to  occupancy  of  the
     Premises  by Tenant, Tenant shall pay to Landlord an  amount
     equal  to ninety percent (90%) of the Excess Costs (as  then
     estimated  by Landlord), less payments received by  Landlord
     pursuant to Paragraph 9(b)(1) herein.

           (3)   As soon as the final accounting is prepared  and
     submitted  by  Landlord to Tenant and  punchlist  items  are
     completed  by  Landlord, Tenant shall pay  to  Landlord  the
     entire  unpaid balance of the actual Excess Costs  based  on
     the final costs to Landlord.

The  Excess Costs (if any) payable by Tenant under this Paragraph
9(b)  shall constitute Additional Rent due hereunder at the  time
specified herein, and failure to make any such payment  when  due
shall constitute a default of Tenant under Paragraph 28 herein.

     (c)  Except as otherwise provided above in this Paragraph 9,
all installations and improvements now or hereafter placed on  or
in  the  Premises shall be for Tenant's account and  at  Tenant's
cost.  Tenant  shall  also pay increased  ad  valorem  taxes  (as
determined by local taxing authority) and increased insurance (as
determined by insurance company) on or attributable to the Tenant
Improvements   (to  the  extent  of  the  cost  of   the   Tenant
Improvements is in excess of the Tenant Improvements  Allowance),
which  cost  shall be payable by Tenant to Landlord as Additional
Rent.

     10.  Maintenance and Repair by Landlord.

      Except  to the extent any such repairs or replacements  are
the  responsibility of Tenant pursuant to the terms of  Paragraph
11  or  Paragraph 12 herein or any other provision in this Lease,
Landlord  shall  be  responsible for maintaining,  repairing  and
replacing:

       (a)   the  roof,  foundations,  exterior  walls,  and  all
structural parts of the Building;

      (b)   all  portions of the Premises affected by  structural
conditions whose source lies outside the Premises;

     (c)  all Common Areas and Building Exterior Common Areas;

     (d)  all utility, sprinkler service, electrical and plumbing
lines  and HVAC systems outside the Premises but which serve  the
Premises on a non-exclusive basis; and

     (e)  all utility, sprinkler service, electrical and plumbing
lines  and HVAC systems within the Premises but which serve other
space within the Building.

      Except as expressly provided herein, Landlord shall not  be
required to make any repairs to the Premises or the Building, but
Landlord  shall  maintain the Building to the  same  quality  and
standards as originally constructed.

     11.  Maintenance and Repair by Tenant.

      In  addition  to any other provisions in this  Lease  which
obligate  Tenant  to perform maintenance, repair and  replacement
duties relative to the Premises and/or the Building, Tenant shall
be   responsible  for  the  following  maintenance,  repair   and
replacement responsibilities:

      (a)   Tenant  shall, at its expense, keep and maintain  the
Premises  in  good order and repair and not commit or  allow  any
waste to be committed on any portion of the Premises; and at  the
termination  of  this  Lease, Tenant agrees  to  deliver  up  the
Premises to Landlord in as good of a condition as existed on  the
Commencement Date, excepting only ordinary wear and tear, acts of
God  and repairs required to be made by Landlord pursuant to  the
terms of this Lease.

      (b)   Tenant  shall, at its expense, keep and maintain  all
HVAC systems and units, appliances and equipment that exclusively
serve  the  Premises (or any portion thereof). In the  event  the
Premises  (or  any portion thereof) is exclusively served  by  an
HVAC  system  or  unit, Tenant shall contract  with  a  qualified
heating and air conditioning service company approved by Landlord
for  the  monthly maintenance and the repair and replacement,  as
necessary,  of  such  HVAC system or unit. Tenant  shall  provide
Landlord  with  a  copy  of  any  contract  required  under  this
Paragraph 11(b) within ten (10) days after the Commencement  Date
and a copy of any subsequent contracts (or any renewal contracts)
within  ten  (10)  days after their execution. The  cost  of  all
contracts  which  Tenant  is  required  to  maintain  under  this
Paragraph 11(b) shall be borne by Tenant.

      (c)  Tenant shall, at Tenant's own cost and expense, repair
or  replace  any  damage done to the Common Areas,  the  Building
Exterior  Common  Areas,  the  Building,  or  any  part   thereof
(including  the  Premises), caused by Tenant or Tenant's  agents,
employees, invitees, or visitors, and such repairs shall  restore
the  damaged area to as good of a condition as existed  prior  to
such  damage  and  shall  be  effected  in  compliance  with  all
applicable  laws;  provided, however,  if,  within  a  reasonable
period  following written notice from Landlord of  the  need  for
such  repairs or replacements, Tenant fails to make such  repairs
or  replacements promptly, Landlord may, at its option, make  the
repairs or replacements, and Tenant shall pay the cost thereof to
Landlord on demand as Additional Rent.

     12.  Alterations by Tenant.

     Tenant shall not make or allow to be made any alterations to
the  Premises  or install any vending machines in  the  Premises,
without  first obtaining the written consent of Landlord in  each
such  instance,  such  consent not to be  unreasonably  withheld,
delayed  or  qualified. Any and all alterations to the  Premises,
including,  without  limitation the  Tenant  Improvements,  shall
become  the  property  of Landlord upon the termination  of  this
Lease  (except  for  personal property  and  furniture  owned  by
Tenant). Landlord may, by written notice to Tenant not later than
sixty  (60) days prior to termination, require Tenant,  upon  the
expiration  or earlier termination of this Lease, to  remove  any
and  all fixtures, equipment and other improvements installed  in
the  Premises by Tenant. In the event that Landlord so elects and
Tenant  fails  to remove such improvements, Landlord  may  remove
such improvements at Tenant's cost, and Tenant shall pay Landlord
on  demand  the  cost  of restoring any damage  to  the  Premises
resulting  from  such removal, excepting only ordinary  wear  and
tear and acts of God.

     13.  Use of Electrical Services by Tenant.

      Landlord shall install an electrical check meter (a  "Check
Meter ") for the Premises as part of the Tenant Improvements. The
Check Meter will measure all electricity supplied to the Premises
(i) to operate lights and light fixtures therein, (ii) to operate
equipment  and fixtures that are connected to electrical  outlets
therein  and  (iii)  to  operate any HVAC  system  or  unit  that
exclusively  serves  the Premises (or any  portion  thereof).  As
contemplated  in Paragraph 8(c) herein, Landlord  shall  pay  the
local  electrical  utility company prior to delinquency  for  the
electricity  supplied to the Premises through  the  Check  Meter.
Provided,  however, in the event the amount paid by  Landlord  to
the local electrical utility company for electricity supplied  to
the  Premises  (as  measured by the Check Meter)  for  any  given
period  of  time  is greater than the allocable  portion  of  the
Premises  Electrical Expense Stop (allocated to the Premises  for
the  relevant period of time), Landlord may submit an invoice  to
Tenant  periodically  for  the cost of  such  excess  electricity
supplied  to the Premises and Tenant shall pay the full  invoiced
amount  (as  Additional Rent) to Landlord within  ten  (10)  days
after  Tenant's  receipt  of  each such  invoice.  The  following
formula  shall  be  used  to determine  the  invoice  amount  for
Tenant's excess electrical usage in the Premises:

      Invoice Amount =Total Electrical Costs Per Check Meter -
                      [(Premises Electrical  Expense
                      Stop)  x  (Number of Days in Period   Number
                      of Days in Year)]

For  example, presuming (for purposes of this illustration  only)
that  the Premises Net Rentable Area is 10,000 square feet,  that
the  Check Meter indicates $2,000.00 of electricity was  supplied
to  the  Premises  during  a given 90-day  period  and  that  the
calendar  year  in  which such 90-day period falls  contains  365
days, Landlord shall be entitled hereunder to send an invoice  to
Tenant  in the amount of $520.40 for excess electrical  usage  in
the Premises during such 90-day period, computed as follows:

             Invoice Amount  =$2,000.00 - [($6,000.00) x (90/365)]
                             =    $2,000.00 -[$6,000.00 x .2466]
                             =    $2,000.00 - $1,479.60
                             =    $520.40

In  computing  invoices  to  be sent to  Tenant  for  electricity
supplied to the Premises through the Check Meter, Landlord  shall
use  the same billing rate per kilowatt hour as is charged to the
overall   Building  by  the  local  electrical  utility  company.
Additionally,  with  regard to any period of time  that  Landlord
elects to use a Check Meter to bill Tenant for excess electricity
supplied  to the Premises, Landlord also shall use a Check  Meter
to  bill  other  tenants in the Building for  excess  electricity
supplied to their respective premises; and in such case, the cost
of  electricity supplied to the Premises and to other premises in
the Building for which Landlord separately bills Tenant and other
tenants  in the Building (i.e. such electrical costs that  exceed
the  Premises Electrical Expense Stop) shall not be  included  in
Basic Costs hereunder.  Landlord shall be entitled to bill Tenant
pursuant to this Paragraph 13 for excess electrical usage in  the
Premises monthly, quarterly, annually or otherwise, as determined
by Landlord from time to time during the Lease Term.

     14.  Graphics and Signage.

      All  letters  and numerals on doors or other signs  on  the
Premises  shall  be  in the standard form  of  graphics  for  the
Building,  and  no  others  shall be used  or  permitted  without
Landlord's prior written consent. Furthermore, Tenant  shall  not
place  signs on or in the Premises which are visible from outside
the Premises. Tenant's name and suite number shall be included by
Landlord on the lobby directory for the Building and at the  main
entry for the Premises.

     15.  Parking.

      During  the Lease Term, Tenant shall have, without  charge,
the  non-exclusive right to use, in common with  Landlord,  other
tenants  of  the  Building,  and  their  respective  guests   and
invitees,  the automobile parking areas, driveways, and  footways
located on the Land. Notwithstanding the terms and provisions  in
the  immediately  preceding sentence,  (i)  Tenant  and  Tenant's
guests and invitees shall not, at any given time, be entitled  to
use  more than five (5) parking spaces for each 1,000 square feet
of  Premises  Net Usable Area, and (ii) Landlord shall  have  the
right during the Lease Term to reserve parking spaces on the Land
for  the exclusive use of other tenants in the Building, provided
the  reservation of such spaces for the exclusive  use  of  other
tenants  in  the  Building does not have the  effect  of  denying
Tenant the non-exclusive use of five (5) parking spaces for  each
1,000  square  feet  of Premises Net Usable  Area.   If  Landlord
provides  reserved  parking  spaces  to  another  tenant  of  the
Building, then Tenant shall also be entitled to reserved  parking
spaces  and the number of such parking spaces reserved for Tenant
shall  be in the same ratio to Tenant's Premises Net Usable  Area
as  the  number of reserved spaces provided to such other  tenant
bears  to such other tenant's Premises Net Usable Area.   To  the
extent  spaces  are  existing  and available,  Tenant's  reserved
spaces  shall  be  located in the same general proximity  to  the
Building  as the reserved spaces for such other tenant or  within
fifty  (50)  feet of such other reserved spaces.   Such  reserved
parking  spaces  are included in and are not in addition  to  the
total  number of parking spaces made available to Tenant pursuant
to this Paragraph 15.

     16.  Compliance with Laws.

       Tenant   agrees  to  comply  with  all  applicable   laws,
ordinances, rules and regulations of any governmental  entity  or
agency  having  jurisdiction over the Premises. Without  limiting
the  generality of the foregoing, in the event the Premises  must
be  modified or any other action relating to the Premises must be
undertaken  in  the  future to comply  with  the  Americans  With
Disabilities Act or any similar federal, state or local  statute,
law,  or  ordinance, the responsibility for such modification  or
action (including the payment of all costs incurred in connection
therewith)  shall belong to Tenant. If the Common  Areas  or  the
Building  Exterior  Common Areas must be modified  or  any  other
action  relating  to  the Common Areas or the  Building  Exterior
Common Areas must be undertaken in the future to comply with  the
Americans With Disabilities Act or any similar federal, state  or
local  statute,  law,  or ordinance and if such  modification  or
action  is required because of (i) any special or unique  use  or
activity  in  the  Premises  or  (ii)  the  performance  of   any
alterations  within  the  Premises, the responsibility  for  such
modification  or  action  (including the  payment  of  all  costs
incurred in connection therewith) shall belong to Tenant.  Except
as  provided in the immediately preceding sentence, in the  event
the  Common Areas or the Building Exterior Common Areas  must  be
modified or any other action relating to the Common Areas or  the
Building  Exterior Common Areas must be undertaken in the  future
to comply with the Americans With Disabilities Act or any similar
federal,   state  or  local  statute,  law,  or  ordinance,   the
responsibility  for  such modification or action  (including  the
payment of all costs incurred in connection therewith, subject to
the  terms  and provisions of this Lease relating  to  the  pass-
through  of  Basic  Costs) shall belong to  Landlord.   Any  such
expenses  included  in Basic Costs shall be  amortized  over  the
useful  life  of  the improvement.  Landlord covenants  that  the
Building and the Premises shall be designed and constructed to be
in  compliance with the Americans With Disabilities Act and other
applicable laws, codes and regulations effective as of the date a
building permit is issued for the Building and the Premises.

     17.  Building Rules and Regulations.

       Tenant   shall  comply  with  the  rules  and  regulations
applicable to the Building and the Building Exterior Common Areas
(the  "Rules  and Regulations") adopted and altered  by  Landlord
from  time  to time and shall cause all of its agents, employees,
invitees  and  visitors to do so; all changes to  the  Rules  and
Regulations  will be sent by Landlord to Tenant in  writing.  The
initial  Rules  and  Regulations, which have  been  reviewed  and
approved  by  Tenant,  are attached hereto  as  Exhibit  E.   The
provisions of this Lease shall control any conflicting provisions
of the Rules and Regulations.

     18.  Entry by Landlord.

      Tenant agrees to permit Landlord and Landlord's agents  and
representatives to enter into and upon any part of  the  Premises
at  all reasonable hours upon 24 hours notice (and in emergencies
at all times and without notice) to inspect the same, to show the
Premises  to  prospective  purchasers,  mortgagees,  tenants   or
insurers,  to install or maintain Check Meters and other  devices
to  determine if Tenant's electrical usage is in excess of design
loads  and  capacities, and to clean or make repairs, alterations
or  additions  thereto, and Tenant shall not be entitled  to  any
abatement or reduction of rent by reason thereof.  Such  repairs,
alterations  and additions shall be scheduled and handled  so  as
not to unreasonably interfere with Tenant's use of the Premises.

     19.  Assignment and Subletting.

     (a)  Tenant shall not assign this Lease or sublet all or any
part  of  the Premises or make any other transfer of its interest
in  the whole or any portion thereof, directly or indirectly,  at
any  time during the Lease Term without the prior written consent
of  Landlord,  which  such  consent  shall  not  be  unreasonably
withheld  or  delayed.  Any attempted assignments,  subleases  or
other  transfers  by  Tenant  in  violation  of  the  terms   and
conditions of this Paragraph 19(a) shall be null and  void.   The
above  notwithstanding, Landlord's consent shall not be  required
in connection with an assignment or sublet of the Premises or any
part  thereof  to any successor of Bairnco Corporation  resulting
from  a  merger, consolidation, sale or acquisition of the entire
business  of  Bairnco  Corporation or to an  entity  which  is  a
subsidiary  or  parent  of Bairnco Corporation  or  is  otherwise
affiliated  with  Bairnco  Corporation  (a  "Special  Transfer"),
provided  notice of same is furnished to Landlord and information
regarding   such  merger,  consolidation,  sale  or   acquisition
reasonably  requested  by  Landlord is  furnished,  and  provided
further  that the then current use of the Premises shall continue
with no major demolition of improvements to the Premises.  In the
event  that  Tenant desires at any time to assign this  Lease  or
sublet  all or any part of the Premises, Tenant shall  submit  to
Landlord  at  least  fifteen  (15) business  days  prior  to  the
proposed  effective  date  of  the  assignment  or  sublease,  in
writing, (i) a request for permission to assign or sublet setting
forth  the  proposed effective date which shall be no  less  than
thirty  days after the sending of such notice; (ii) the  name  of
the  proposed  subtenant or assignee or other  party;  (iii)  the
nature of the business to be carried on in the Premises after the
assignment  or  sublet;  (iv) the terms  and  provisions  of  the
proposed   assignment  or  sublet;  and  (v)  current   financial
statements  of  the  proposed subtenant  or  assignee;  and  such
additional  information that Landlord may reasonably  request  in
order to make a reasoned judgment.

      (b)  If Tenant requests Landlord's consent to an assignment
of  this  Lease or subletting of all or part of the Premises,  or
any  other transfer of its interest(s), Landlord shall  have  the
option  (without limiting Landlord's other rights  hereunder)  of
terminating  this  Lease  with respect  to  the  portion  of  the
Premises  subject  to  the  proposed  assignment,  subletting  or
transfer  upon fifteen (15) business days' notice and of  dealing
directly with the proposed assignee, subtenant or transferee.  If
Landlord  should fail to notify Tenant in writing of its decision
within  a  fifteen  (15) business day period  after  Landlord  is
notified in writing of the proposed assignment, sublease or other
transfer, Landlord shall be deemed to have refused to consent  to
such assignment, sublease or transfer and to have elected to keep
this Lease in full force and effect.  If Landlord notifies Tenant
that  Landlord  has  refused to consent  to  such  assignment  or
sublease  and that Landlord intends to terminate this Lease  with
respect  to  the portion of the Premises subject to the  proposed
assignment  or sublease, then Tenant shall have the right  to  be
exercised  within  ten  (10)  days  thereafter  to  withdraw  its
proposed  assignment or sublease in which event the  Lease  shall
not  be  terminated  as to such portion of  the  Premises.   This
subparagraph  (b)  shall  not apply  to  a  Special  Transfer  as
described above.

      (c)   Landlord  hereby  reserves  the  right  to  condition
Landlord's  consent to any assignment or sublet  upon  Landlord's
receipt from Tenant of a written agreement, in form and substance
acceptable to Landlord, pursuant to which Tenant shall  pay  over
to   Landlord   fifty  percent  (50%)  of  all  rent   or   other
consideration  received  by Tenant from  any  such  subtenant  or
assignee, either initially or over the term of the assignment  or
sublease, in excess of the Rent called for hereunder, or, in case
of  the sublease of a portion of the Premises, in excess of  such
rent   fairly   allocable  to  such  portion,  after  appropriate
adjustments  to  assure  that  all  other  payments  called   for
hereunder  are taken into account, and after taking into  account
Tenant's  reasonable  expenses incurred in connection  with  such
subletting or assignment.  This subparagraph (c) shall not  apply
to a Special Transfer as described above.

      (d)  If Tenant assigns, sublets or makes any other transfer
of  all or any portion of its interest(s) hereunder, Tenant named
in this Lease shall remain directly and primarily responsible for
the  faithful performance and observance of all of the  covenants
and  obligations on Tenant's part to be performed in this  Lease.
No  assignment or subletting shall affect the continuing  primary
liability of Tenant hereunder (which, following any assignment or
sublet,  shall  be  joint  and  several  with  the  assignee   or
subtenant), and Tenant shall not be released from performing  any
of the terms, covenants and conditions of this Lease.

      (e)  Any assignee or subtenant hereunder shall be bound  by
and  shall  comply with all of the terms and provisions  in  this
Lease,  including,  without limitation, the use  restriction  set
forth  in Paragraph 4 herein. As a condition to the effectiveness
of  any  assignment  that  is permitted hereunder,  the  assignee
shall,  by an instrument in writing, assume and agree to  perform
(for the express benefit of Landlord) the terms hereof; and as  a
condition  to the effectiveness of any sublease that is permitted
hereunder,  the subtenant shall acknowledge in writing  (for  the
express  benefit  of Landlord) the existence of  this  Lease  and
shall covenant not to do or permit to be done anything that would
constitute a breach hereof.

      (f)  Landlord's consent to any one assignment, sublease  or
other  transfer hereunder shall not waive the requirement of  its
consent  to any subsequent assignment, sublease or other transfer
as required herein.

     20.  Liens.

     Tenant will not permit any mechanic's lien(s) or other liens
to  be  placed  upon the Premises, the Building or the  Land  and
nothing in this Lease shall be deemed or construed in any way  as
constituting  the  consent or request  of  Landlord,  express  or
implied,  by  inference  or otherwise,  to  any  person  for  the
performance  of any labor or the furnishing of any  materials  to
the  Premises,  or  any part thereof, nor as  giving  Tenant  any
right, power or authority to contract for or permit the rendering
of  any  services or the furnishing of any materials  that  would
give  rise to any mechanics' or other liens against the Premises,
the  Building or the Land. In the event any such lien is attached
to  the Premises, the Building or the Land, then, in addition  to
any  other  right or remedy of Landlord, Landlord may, but  shall
not  be  obliged  to,  discharge the same.  Any  amount  paid  by
Landlord for any of the aforesaid purposes shall be reimbursed by
Tenant to Landlord on demand as Additional Rent.

      The interest of Landlord shall not be subject to liens  for
improvements made by Tenant in and to the Premises.  Tenant shall
notify   every  contractor  making  such  improvements   of   the
provisions set forth in the preceding sentence of this paragraph.
The  parties  agree,  should Landlord  so  request,  to  execute,
acknowledge  and deliver without charge to Tenant, a  Short  Form
Lease  in recordable form in accordance with Chapter 713, Florida
Statutes  containing a confirmation that the interest of Landlord
shall not be subject to liens for improvements made by Tenant  to
the Premises.

     21.  Property Insurance.

     Landlord shall maintain fire and extended coverage insurance
on  the  Building  and  the Premises, such policy(ies)  to  cover
Landlord's  interest in the Building and Premises  for  not  less
than the full replacement value thereof. Such insurance shall  be
maintained at the expense of Landlord (as a part of Basic Costs),
and  payments  for  losses thereunder shall  be  made  solely  to
Landlord  or the mortgagees of Landlord relative to the Land  and
the  Building  (collectively, "Mortgagees"; each, a "Mortgagee"),
as   their  respective  interests  shall  appear.  Tenant   shall
maintain,  at its expense, in an amount equal to full replacement
cost, fire and extended coverage insurance on all of its personal
property,  including  removable trade fixtures,  located  in  the
Premises. Tenant shall, at Landlord's request from time to  time,
provide   Landlord   with  current  certificates   of   insurance
evidencing Tenant's compliance with the terms and requirements of
this  Paragraph 21 and Paragraph 22 herein. All policies required
to  be maintained by Tenant under this Paragraph 21 and Paragraph
22  herein shall contain a provision whereby the insurer  is  not
allowed  to  cancel,  fail  to renew  or  change  materially  the
coverage  without  first giving thirty (30)  days  prior  written
notice  to  Landlord. Tenant shall also obtain the  agreement  of
Tenant's  insurers to notify Landlord that a  policy  is  due  to
expire at least thirty (30) days prior to such expiration.

     22.  Liability Insurance.

     Tenant and Landlord shall, each at its own expense, maintain
a policy or policies of comprehensive general liability insurance
(occurrence  coverage) with respect to the respective  activities
of each on the Land and in the Building with the premiums thereon
fully paid on or before the due date, issued by and binding  upon
an  insurance company authorized to conduct such business in  the
State  of Florida. Such comprehensive general liability insurance
to  be maintained by Tenant and Landlord under this Paragraph  22
shall  afford  minimum  protection of not  less  than  $1,000,000
combined single limit coverage of bodily injury, property  damage
or  combination thereof; and such comprehensive general liability
insurance  to be maintained by Tenant shall name Landlord  as  an
additional insured. Such insurance coverage maintained by  Tenant
also  shall  include,  without limitation,  personal  injury  and
contractual liability coverage for the performance by  Tenant  of
the  indemnity agreements set forth in this Lease. Landlord shall
not  be required to maintain insurance against thefts within  the
Premises or the Building or on the Land.

     23.  Indemnities.

      Landlord  shall  not be liable to Tenant,  or  to  Tenant's
agents,  servants,  employees, customers,  or  invitees  for  any
injury  to  person  or  damage to property  caused  by  any  act,
omission,  or neglect of Tenant, its agents, servants, employees,
invitees,  licensees or any other person entering the  Land,  the
Building  Exterior  Common Areas, the Building  or  the  Premises
under  the  invitation of Tenant or arising out of a  default  by
Tenant  in  the performance of its obligations hereunder.  Tenant
hereby indemnifies and holds Landlord harmless from all liability
and  claims  for  any  such  damage or injury.   Landlord  hereby
indemnifies  and  holds Tenant harmless from  all  liability  and
claims  for  any  damage  or injury resulting  from  any  act  or
omission  of  Landlord  that constitutes  negligence  or  willful
misconduct.

     24.  Waiver and Waiver of Subrogation Rights.

      Anything  in  this  Lease  to the contrary  notwithstanding
(including,  without limitation, Paragraph 23  herein),  Landlord
and  Tenant  each  hereby waive any and all rights  of  recovery,
claim, action, or cause of action, against the other, its agents,
officers, or employees, for any loss or damage that may occur  to
the  Premises or a part thereof, or any improvements thereto,  or
any  personal property of such party therein, by reason of  fire,
the  elements,  or any other cause(s) which are  insured  against
under  the  terms  of  the standard fire  and  extended  coverage
insurance policies referred to in Paragraph 21 herein, regardless
of  cause  or  origin, including negligence of  the  other  party
hereto,   its  agents,  officers,  or  employees.  All  insurance
policies  carried  with  respect  to  Paragraph  21  herein,   if
permitted under applicable law, shall contain a provision whereby
the  insurer  waives,  prior to loss, all rights  of  subrogation
against Landlord and Tenant.

     25.  Casualty Damage.

     If the Premises or any part thereof shall be damaged by fire
or  other  casualty,  Tenant  shall give  prompt  written  notice
thereof  to  Landlord. In case the Building shall be  so  damaged
that  substantial alteration or reconstruction  of  the  Building
shall  be  required (whether or not the Premises shall have  been
damaged  by  such casualty) or in the event any Mortgagee  should
require  that  the insurance proceeds payable as a  result  of  a
casualty be applied to the payment of the mortgage debt or in the
event  of  any material uninsured loss to the Building,  Landlord
may,  at its option, terminate this Lease by notifying Tenant  in
writing  of  such termination within ninety (90) days  after  the
date  of  such  casualty. If, by reason  of  such  casualty,  the
Premises are rendered untenantable in some material portion,  and
the  amount  of time required to repair the damage is  reasonably
determined  by  Landlord to be in excess of  one  hundred  eighty
(180)  days  from  the date upon which Landlord  is  required  to
determine whether to terminate this Lease, then Tenant shall have
the  right  to  terminate this Lease by giving  Landlord  written
notice  of  termination within thirty (30) days  after  the  date
Landlord  delivers Tenant notice that the amount of time required
to  repair the damage has been determined by Landlord  to  be  in
excess  of one hundred eighty (180) days. If Landlord (or Tenant,
if  applicable)  does  not thus elect to  terminate  this  Lease,
Landlord shall commence and proceed with reasonable diligence  to
restore  the  Building  to substantially the  same  condition  as
existed  immediately  prior to the occurrence  of  the  casualty,
except that Landlord's obligation to restore shall not exceed the
scope  of  the work required to be done by Landlord in originally
constructing  the Building Shell Improvements and installing  the
Tenant  Improvements  in the Premises.   Landlord  shall  not  be
obligated  to  restore  the Building Shell  Improvements  or  the
Premises if the cost of the restoration work required under  this
Lease  and all other leases of space in the Building exceeds  the
insurance  proceeds actually received by Landlord as a result  of
the  casualty,  in  which event Tenant shall have  the  right  to
terminate  this  Lease.  When the Tenant Improvements  have  been
restored by Landlord, Tenant shall restore Tenant's furniture and
equipment. Landlord shall not be liable for any inconvenience  or
annoyance to Tenant or injury to the business of Tenant resulting
in  any way from such damage or the repair thereof, except  that,
subject  to  the provisions of the next sentence, Landlord  shall
allow Tenant a fair diminution of Rent during the time and to the
extent  the Premises are untenantable and until a Certificate  of
Occupancy  is  issued following repair of the  Premises.  If  the
Premises or any other portion of the Building is damaged by  fire
or  other  casualty  resulting from the fault  or  negligence  of
Tenant  or  any  of Tenant's agents, employees, or invitees,  the
rent  hereunder shall not be diminished during the repair of such
damage and Tenant shall be liable to Landlord for the cost of the
repair  and  restoration of the Building caused  thereby  to  the
extent  such  cost  and  expense are  not  covered  by  insurance
proceeds.

     26.  Condemnation.

      If the whole or substantially the whole of the Building  or
the  Premises should be taken for any public or quasi-public use,
by right of eminent domain or otherwise or should be sold in lieu
of  condemnation, then this Lease shall terminate as of the  date
when physical possession of the Building or the Premises is taken
by   the  condemning  authority.  If  less  than  the  whole   or
substantially the whole of the Building or Premises is thus taken
or  sold and the remaining portion of the Building can no  longer
be  operated  as a multi-tenant office building on a  financially
sound  basis,  in  Landlord's sole opinion, or if  any  Mortgagee
should require that the condemnation proceeds payable as a result
of  such taking or sale be applied to the payment of the mortgage
debt,  Landlord (whether or not the Premises are affected by  the
taking or sale) may terminate this Lease by giving written notice
thereof  to Tenant, in which event this Lease shall terminate  as
of  the  date  when physical possession of such  portion  of  the
Building  or  Premises is taken by the condemning  authority.  If
this Lease is not so terminated upon any such taking or sale  and
if a portion of the Premises is affected thereby, the Base Rental
payable hereunder shall be diminished by an equitable amount, and
Landlord  shall,  restore  the  Building  and  the  Premises   to
substantially   their   former   condition,   except   Landlord's
obligation  to  restore shall not exceed the scope  of  the  work
required  to  be done by Landlord in originally constructing  the
Building   Shell   Improvements   and   installing   the   Tenant
Improvements.   Landlord shall not be obligated  to  restore  the
Building  Shell  Improvements or the Tenant Improvements  if  the
cost  of  the restoration work required under this Lease and  all
other leases of space in the Building exceeds the amount received
by Landlord for such taking, in which event Tenant shall have the
right to terminate this Lease.  All amounts awarded upon a taking
of  any  part or all of the Building or the Premises shall belong
to  Landlord,  and Tenant shall not be entitled to and  expressly
waives all claims to any such compensation, but Tenant shall  not
be  barred  from making its own claim to the condemning authority
provided  such claim does not reduce the compensation payable  to
Landlord.

     27.  Damages from Certain Causes.

      Landlord  shall  not be liable to Tenant for  any  loss  or
damage  to any property or person occasioned by theft, fire,  act
of  God,  public  enemy, injunction, riot, strike,  insurrection,
war,  court order, requisition, or order of governmental body  or
authority  or  by  any  other  Force Majeure  Matter.  Nor  shall
Landlord  be  liable  for any damage or inconvenience  which  may
arise through repair or alteration of any part of the Building or
Premises,  except  as is the result of Landlord's  negligence  or
willful misconduct.

     28.  Events of Default/Remedies.

      (a)   The following events shall be deemed to be events  of
default  by Tenant under this Lease: (i) Tenant fails to pay  any
installment of Base Rental or Additional Rent when due  and  such
failure  continues for more than five (5) days  after  Tenant  is
given  written notice of such failure (provided, however,  Tenant
shall  not  be entitled to such notice and cure period more  than
twice  in  any calendar year during the Lease Term); (ii)  Tenant
fails  to  comply  with any provision of this Lease  (other  than
clauses  (iii),  (iv),  (v), (vi) and  (vii)  in  this  Paragraph
28(a)),  all  of which terms, provisions and covenants  shall  be
deemed  material and such failure continues for more than  thirty
(30) days after Tenant is given written notice of such failure or
Tenant  fails to commence to cure the default within said  thirty
(30)  day  period  and diligently pursue the cure  to  completion
(provided  such  30-day notice and cure period  for  non-monetary
defaults  shall  be  decreased or dispensed with,  as  reasonably
required,  in cases of emergency or in circumstances  where  such
failure  will result in a default by Landlord under other  leases
of  space in the Building); (iii) the leasehold estate of  Tenant
is  taken  on  execution or other process of law  in  any  action
against  Tenant; (iv) Tenant abandons any substantial portion  of
the  Premises and fails to pay Rent for the Premises; (v)  Tenant
becomes insolvent or unable to pay its debts as they become  due,
or Tenant notifies Landlord that it anticipates either condition;
(vi)  Tenant takes any action to or notifies Landlord that Tenant
intends  to file a petition under any section or chapter  of  the
United  States Bankruptcy Code, as amended from time to time,  or
under  any  similar law or statute of the United  States  or  any
State  thereof; or a petition shall be filed against Tenant under
any  such  statute or Tenant or any creditor of Tenant's notifies
Landlord  that it knows such a petition will be filed  or  Tenant
notifies Landlord that it expects such a petition to be filed; or
(vii)  a  receiver or trustee is appointed for Tenant's leasehold
interest in the Premises or for all or a substantial part of  the
assets  of  Tenant.  Provided, however, and  notwithstanding  the
foregoing provisions in this Paragraph 28(a), Tenant shall not be
entitled  to  any  notice  and cure  period  in  connection  with
Tenant's  obligation to vacate the Premises at  the  end  of  the
Lease Term.

      (b)   Upon the occurrence under this Lease of any event  or
events  of  default  by Tenant, whether enumerated  in  Paragraph
28(a) herein or not, Landlord shall have the option to pursue any
one  or more of the following remedies: (i) terminate this Lease,
in which event Tenant shall immediately surrender the Premises to
Landlord;  (ii) terminate Tenant's right to occupy  the  Premises
and  re-enter  and  take  possession  of  the  Premises  (without
terminating  this  Lease)  and relet  or  attempt  to  relet  the
Premises  for  the account of Tenant and Landlord  shall  not  be
deemed to have thereby accepted a surrender of the Premises,  and
Tenant  shall remain liable for all Base Rental, Additional  Rent
or  other  sums due under this Lease and for all damages suffered
by  Landlord because of Tenant's breach of any provision of  this
Lease;  (iii) enter upon the Premises and do whatever  Tenant  is
obligated to do under the terms of this Lease, and Tenant  agrees
to  reimburse  Landlord on demand for any expense which  Landlord
may incur in effecting compliance with Tenant's obligations under
this Lease, and Tenant further agrees that Landlord shall not  be
liable for any damages resulting to Tenant from such action; (iv)
accelerate  and declare the entire remaining unpaid  Base  Rental
and Additional Rent for the balance of the Lease Term (reduced to
present  value) to be immediately due and payable forthwith,  and
may,  at once, take legal action to recover and collect the same;
and  (v)  exercise  all  other  remedies  and  seek  all  damages
available  to  Landlord at law or in equity,  including,  without
limitation, injunctive relief of all varieties.

      In the event Landlord elects to re-enter or take possession
of  the  Premises  after Tenant's default, Tenant  hereby  waives
notice  of such re-entry or repossession and of Landlord's intent
to  re-enter or take possession. Landlord may, without  prejudice
to  any  other  remedy  which  it  may  have  for  possession  or
arrearages  in rent, expel or remove Tenant and any other  person
who  may  be  occupying  said Premises or any  part  thereof.  In
addition, the provisions of Paragraph 31 herein shall apply  with
respect to the period from and after the giving of notice of such
termination  to  Tenant. All of Landlord's  remedies  under  this
Lease  shall  be  cumulative  and not exclusive.  Forbearance  by
Landlord  to enforce one or more of the remedies herein  provided
upon  an  event  of default shall not be deemed or  construed  to
constitute a waiver of such default or an election of remedies.

      (c)  Any installment of Base Rental and any Additional Rent
not  paid  within ten (10) days following the date when  due  and
payable shall bear interest from the date due until paid  at  the
lesser  of  (i)  eighteen percent (18%) per  annum  or  (ii)  the
maximum lawful contract rate per annum.

      (d)   This Paragraph 28 shall be enforceable to the maximum
extent not prohibited by applicable law, and the unenforceability
of any portion thereof shall not thereby render unenforceable any
other  portion.  To  the extent any provision of  applicable  law
requires  some  action  by Landlord to  evidence  or  effect  the
termination  of  this  Lease or to evidence  the  termination  of
Tenant's  right  of occupancy, Tenant and Landlord  hereby  agree
that  notice,  in  writing only and delivered in accordance  with
Paragraph  37 herein, shall be sufficient to evidence and  effect
the termination therein provided for.

      (e)  Landlord shall be in default hereunder  in  the  event
Landlord has not begun and pursued with reasonable diligence  the
cure of any failure of Landlord to meet its obligations hereunder
within  thirty (30) days of receipt by Landlord of written notice
from  Tenant  of  the  alleged  failure  to  perform.  Except  as
otherwise  provided  in Paragraph 3 herein,  in  no  event  shall
Tenant  have  the  right to terminate or rescind  this  Lease  or
otherwise withhold or abate Base Rental or Additional Rent  as  a
result  of  Landlord's  default as to any covenant  or  agreement
contained  in  this  Lease or as a result of the  breach  of  any
promise or inducement hereof, whether in this Lease or elsewhere.
Tenant  hereby  waives  such remedies for default  hereunder  and
Tenant's  remedies  for default by Landlord  hereunder  shall  be
limited  to  a  proceeding  for  damages  and/or  injunction.  In
addition, Tenant hereby covenants that, prior to the exercise  of
any such remedies, it will give the Mortgagee(s) who then hold(s)
a  mortgage on the Building (if Landlord has notified  Tenant  of
the  name and address of such Mortgagee) the same notice and time
period  as  Landlord to cure any default by Landlord  under  this
Lease.

     29.  Security Deposit.  - Intentionally Deleted.

     30.  Peaceful Enjoyment.

      Tenant shall, and may peacefully have, hold, and enjoy  the
Premises against Landlord and all persons claiming by and through
or  under Landlord for the Lease Term, subject to the other terms
hereof,  provided  Tenant pays the rent  and  other  sums  herein
recited  to  be  paid  by  Tenant and performs  all  of  Tenant's
covenants and agreements herein contained. This covenant and  any
and  all  other  covenants  of Landlord  shall  be  binding  upon
Landlord  and  its  successors  only  with  respect  to  breaches
occurring during its or their respective periods of ownership  of
Landlord's interest hereunder.

     31.  Holding Over.

      If Tenant remains in possession of the Premises or any part
thereof  after  the  expiration or earlier  termination  of  this
Lease,  whether  with or without Landlord's acquiescence,  Tenant
shall  be  deemed  a  tenant at will. In the event  of  any  such
holding  over by Tenant after the expiration or other termination
of  this  Lease  or in the event Tenant continues to  occupy  the
Premises  after the termination of Tenant's right  of  possession
pursuant to Paragraph 28(b) herein, Tenant shall, throughout  the
entire holdover period, pay Base Rental equal to 150% of the Base
Rental  in  effect immediately before the holdover period  began,
together  with  all applicable Additional Rent which  would  have
been  applicable had the Lease Term continued through the  period
of  such holding over by Tenant. Tenant shall also remain  liable
for  any  and actual damages suffered by Landlord as a result  of
any holdover without Landlord's unequivocal written acquiescence.
No  holding over by Tenant after the expiration of the Lease Term
shall be construed to extend the Lease Term.

     32.  Subordination to Mortgage.

      Tenant  accepts this Lease subject and subordinate  to  any
mortgage,  deed  of  trust, or other lien presently  existing  or
hereafter  arising  upon the Premises, the  Building  and/or  the
Land,  and  to  any  renewals,  modifications,  refinancings  and
extensions  thereof, but Tenant agrees that  any  such  Mortgagee
shall  have  the  right  (without seeking or  obtaining  Tenant's
consent) at any time to subordinate such mortgage, deed of  trust
or  other  lien  to  this Lease. Tenant agrees to  cooperate  and
execute  and deliver such further instruments subordinating  this
Lease  or  attorning to the holder of any such liens as  Landlord
may request within fifteen (15) days of the date of such request.
Landlord shall provide a non-disturbance agreement from Mortgagee
to Tenant if a mortgage is placed on the Building.

     33.  Estoppel Certificate.

      Tenant  agrees that it will, from time to time upon request
by  Landlord  and  within fifteen ( 15)  days  of  such  request,
cooperate  and  execute and deliver to such persons  as  Landlord
shall   request  an  estoppel  certificate  in  recordable   form
certifying  that this Lease is unmodified and in full  force  and
effect  (or if there have been modifications, that this Lease  is
in  full  force and effect as so modified), stating the dates  to
which  rent and other charges payable under this Lease have  been
paid, stating that, to the best knowledge of Tenant, Landlord  is
not in default hereunder (or if Tenant alleges a default, stating
the  nature  of  such alleged default) and further  stating  such
other  matters as Landlord shall reasonably require. In the event
that  Tenant should fail to execute any such estoppel certificate
promptly  as  requested,  Tenant hereby  irrevocably  constitutes
Landlord   as  its  attorney-in-fact  to  execute  such  estoppel
certificate  in Tenant's name, place and stead, it  being  agreed
that  such power is one coupled with an interest.  Landlord shall
likewise provide an estoppel certificate if requested by Tenant.

     34.  Attorneys' Fees.

     In the event either party defaults in the performance of any
of   the  terms  of  this  Lease  and  the  other  party  employs
attorney(s) in connection therewith, the defaulting party  agrees
to   pay   the  prevailing  party's  reasonable  attorneys'   and
paralegals'  fees (calculated at such attorneys'  reasonable  and
customary  hourly  rates  and without regard  to  the  amount  in
controversy) and costs of litigation, whether at the trial level,
on appeal or in any bankruptcy or administrative proceedings.

     35.  No Implied Waiver.

      The  failure  of Landlord to insist at any  time  upon  the
strict  performance  of any covenant or agreement  herein  or  to
exercise  any  option, right, power or remedy contained  in  this
Lease  shall  not  be construed as a waiver or  a  relinquishment
thereof  for  the  future. No payment by  Tenant  or  receipt  by
Landlord of a lesser amount than the monthly installment of  rent
due  under this Lease shall be deemed to be other than on account
of  the earliest rent due hereunder, nor shall any endorsement or
statement  on any check or any letter accompanying any  check  or
payment  as  rent  be  deemed  an accord  and  satisfaction,  and
Landlord  may  accept such check or payment without prejudice  to
Landlord's right to recover the balance of such rent or to pursue
any other remedy in this Lease provided.

     36.  Personal Liability.

      The  liability  of Landlord to Tenant for  any  default  by
Landlord  under the terms of this Lease shall be limited  to  the
equity  of  Landlord  in the Building and the  Land,  and  Tenant
agrees  to  look solely to Landlord's equity in the Building  and
the  Land  for recovery of any judgment from Landlord,  it  being
intended  that  neither  Landlord nor the shareholders,  parents,
affiliates,  partners, members, or owners of  Landlord  shall  be
personally liable for any judgment or deficiency.

     37.  Notices.

     Any notice in this Lease provided for must, unless otherwise
expressly  provided  herein,  be  in  writing,  and  may,  unless
otherwise in this Lease expressly provided, be given or be served
by  depositing the same in the United States mail,  postpaid  and
certified  or  registered  and  addressed  to  the  party  to  be
notified,  with  return receipt requested, or by  delivering  the
same  in  person  to  an  officer of such party,  or  by  prepaid
telegram  or overnight delivery service (e.g., Federal  Express),
or by sending the same by facsimile (with the original being sent
by  one of the other permitted means), addressed to the party  to
be notified at the applicable address stated in the Lease Summary
or  such  other address, notice of which has been  given  to  the
other  party pursuant to this Paragraph 37.  Notice deposited  in
the  mail  in the manner hereinabove described shall be effective
from and after the expiration of three (3) calendar days after it
is  so  deposited. Notice by personal delivery shall be effective
on  the day of personal delivery.  Notice by prepaid telegram  or
overnight  delivery  service shall  be  effective  on  the  first
business day after said notice is sent. Notice by facsimile shall
be  effective on the day sent by facsimile (provided the original
is sent by one of the other permitted means).

     38.  Severability.

      If  any term or provision of this Lease, or the application
thereof  to  any person or circumstance shall, to any extent,  be
invalid  or  unenforceable, the remainder of this Lease,  or  the
application of such term or provision to persons or circumstances
other than those as to which it is held invalid or unenforceable,
shall  not  be  affected thereby, and each term and provision  of
this  Lease  shall  be valid and enforced to the  fullest  extent
permitted  by  law, notwithstanding the invalidity of  any  other
term or provision hereof.

     39.  Recordation.

      Tenant  agrees not to record this Lease; provided, however,
Landlord shall execute and deliver a memorandum of this Lease, in
recordable  form, and suitable to provide record notice  of  this
Lease, if so requested by Tenant.

     40.  Governing Law and Venue.

      This  Lease  and the rights and obligations of the  parties
hereto   shall  be  interpreted,  construed,  and   enforced   in
accordance  with the laws of the State of Florida and  venue  for
any  actions initiated by Landlord or Tenant shall be in Seminole
County.

     41.  Force Majeure.

      Whenever  a  period  of time is herein prescribed  for  the
taking of any action by Landlord or Tenant, such party shall  not
be  liable  or responsible for, and there shall be excluded  from
the  computation of such period of time, any delays  due  to  any
condition,  matter or circumstance beyond the reasonable  control
of  such  party (collectively, "Force Majeure Matters";  each,  a
"Force  Majeure  Matter"),  including,  without  limitation,  the
following:   strikes;  defaults  or  failures   to   perform   by
contractors  or  subcontractors;  unavailability  of   materials;
lockouts;  acts of God; governmental restrictions, war  or  enemy
action  or  invasion;  civil commotion; insurrection;  riot;  mob
violence;  malicious  mischief or sabotage;  fire  or  any  other
casualty;   adverse  weather  conditions  or  unusual   inclement
weather;    a    condemnation;   failure   of   a    governmental
instrumentality  to act in a timely fashion;  any  litigation  or
other legal proceeding which delays the approval of plans or  the
issuance  of  any  grading or building permit  for  construction,
including,  without  limitation, the issuance  of  an  injunction
enjoining such approval and/or issuance, as the case may be;  any
law, order or regulation of any governmental, quasi-governmental,
judicial  or  military authority; or other similar  cause.  Force
Majeure  Matters shall not excuse or delay payment due hereunder.
Without limiting the generality of the foregoing, in the event  a
Force Majeure Matter affects Landlord's construction and delivery
obligation(s)  relative  to the Premises  under  this  Lease,  at
Landlord's option, the Commencement Date shall be extended by the
same number of days as the number of days of delay caused by such
Force  Majeure  Matter on the critical path  of  completing  such
construction and delivery obligation(s).

     42.  Time of Performance.

      Except as expressly otherwise herein provided, with respect
to  all  required acts of Tenant, time is of the essence of  this
Lease.

     43.  Transfers by Landlord.

      Landlord  shall have the right to transfer and  assign,  in
whole or in part, all its rights and obligations hereunder and in
the  Building and property referred to herein, and in such  event
and  upon  such  transfer Landlord shall  be  released  from  any
further  obligations hereunder, and Tenant agrees to look  solely
to  such successor in interest of Landlord for the performance of
such  obligations,  except  those obligations  of  Landlord  with
respect  to  which a default exists as of the effective  date  of
such transfer or assignment.

     44.  Commissions.

     Landlord warrants and represents to Tenant that Landlord has
not  engaged  or contracted with any person, firm  or  entity  to
serve or act as a broker, agent or finder, other than Broker  (if
any),  for  the purpose of leasing the Premises or in  regard  to
this  Lease.  Tenant  warrants and represents  to  Landlord  that
Tenant has not engaged, contracted with or dealt with any person,
firm  or entity (other than Broker, if any) to serve or act as  a
broker,  agent or finder, for the purpose of leasing the Premises
or  in  regard  to  this  Lease. Landlord  agrees  to  be  solely
responsible for the payment of any commission to Broker (if  any)
relating  to this Lease pursuant to a separate agreement  between
Landlord  and  Broker  (if any). Tenant  shall  and  does  hereby
indemnify  and hold harmless Landlord from and against any  claim
for  any  consulting  fee,  finder's  fee,  commission,  or  like
compensation,  including reasonable attorneys'  fees  in  defense
thereof,  payable in connection with this Lease and  asserted  by
any  party  arising  out  of  any act  or  agreement  by  Tenant,
excluding the commission payable by Landlord to Broker  (if  any)
as described above.

     45.  Effect of Delivery of this Lease.

      Landlord  has delivered a copy of this Lease to Tenant  for
Tenant's  review only, and such delivery does not  constitute  an
offer to Tenant or an option in favor of Tenant. This Lease shall
not  be effective until an original executed by both Landlord and
Tenant is delivered to and accepted by Landlord.

     46.  Real Estate Investment Trust.

     During the Lease Term, should a real estate investment trust
become  Landlord  hereunder, all provisions of this  Lease  shall
remain  in  full  force and effect except  as  modified  by  this
Paragraph  46.  If  Landlord in good faith  determines  that  its
status as a real estate investment trust under the provisions  of
the  Internal  Revenue Code of 1986, as heretofore  or  hereafter
amended,  will  be jeopardized because of any provision  of  this
Lease,  Landlord may request reasonable amendments to this  Lease
and  Tenant  will not unreasonably withhold, delay or  defer  its
consent  thereto,  provided  that  such  amendments  do  not  (a)
increase  the  monetary obligations of Tenant  pursuant  to  this
Lease  or  (b)  in  any  other manner adversely  affect  Tenant's
interest in the Premises.

     47.  Hazardous Materials.

           (a)   Throughout  the  Lease Term,  Tenant  shall  not
knowingly  cause, permit or allow any Hazardous Materials  to  be
placed,  stored,  dumped, dispensed, released, discharged,  used,
sold,  transported, or located on or within any  portion  of  the
Premises,  the  Building or the Land by itself or  its  servants,
agents,   employees,   contractors,  subcontractors,   licensees,
assignees  or subtenants; provided, however, minor quantities  of
Hazardous  Materials may be used or stored in  the  Premises  for
cleaning  purposes only or in connection with the use  of  office
equipment  and the normal operation of Tenant's office  only,  so
long  as such quantities and the use thereof are permitted by  or
are exempt from applicable governmental regulation. Tenant agrees
to   give  Landlord  prompt  written  notice  of  any  discovery,
discharge, release or threatened discharge or threatened  release
of any Hazardous Materials on or about the Premises, the Building
or  the  Land.  Tenant agrees to promptly clean up any  Hazardous
Materials  which are placed in the Premises or  on  the  Land  by
Tenant   or   its   servants,  agents,  employees,   contractors,
subcontractors,  licensees,  assignees  or  subtenants   and   to
remediate  and  remove  any such contamination  relating  to  the
Premises,  the  Building  and/or the  Land,  as  appropriate,  at
Tenant's  cost  and  expense, in compliance with  all  applicable
laws,  ordinances, rules and regulations then in  effect  and  to
Landlord's  satisfaction,  at no cost  or  expense  to  Landlord.
Additionally, Tenant hereby agrees to indemnify and hold harmless
Landlord  and Landlord's partners, officers, directors,  members,
affiliates, employees and agents from and against all loss, cost,
damage,  liability  and expense (including  attorneys'  fees  and
expenses)  arising  from or relating to any  Hazardous  Materials
(other  than  those  permitted above) which  are  placed  in  the
Premises  or  the  Building  or on the  Land  by  Tenant  or  its
servants,   agents,   employees,   contractors,   subcontractors,
licensees, assignees or subtenants.  For purposes of this  Lease,
the term "Hazardous Materials" means such substances as give rise
to  remediation  requirements, duties or  obligations  under  the
Clean  Air  Act, the Clean Water Act, the Federal Water Pollution
Control  Act  of 1976, the Comprehensive Environmental  Response,
Compensation Liability Act of 1980, the Toxic Substances  Control
Act  and  any  other  state  or federal  environmental  statutes,
ordinances, rules or regulations.

      (b)   The  terms and provisions in this Paragraph 47  shall
survive the termination or earlier expiration of this Lease.

     48.  Landlord's Right of Relocation. Intentionally deleted.

     49.  Evidence of Authority.

      If  requested by Landlord, Tenant shall furnish appropriate
legal  documentation  evidencing the  valid  existence  and  good
standing of Tenant and the authority of any parties signing  this
Lease  to  act  for  Tenant. By signing this  Lease  on  Tenant's
behalf,  the signatory for Tenant hereby represents the truth  of
such facts to Landlord.

     50.  Survival of Obligations.

      Notwithstanding any term or provision in this Lease to  the
contrary,  any  liability or obligation  of  Landlord  or  Tenant
arising  during or accruing with respect to the Lease Term  shall
survive  the  expiration or earlier termination  of  this  Lease,
including,   without  limitation,  obligations  and   liabilities
relating to (i) rent payments, (ii) the condition of the Premises
and the removal of Tenant's property, and (ii) indemnity and hold
harmless provisions in this Lease.

     51.  Confidentiality.

      Tenant  agrees, on behalf of Tenant and Tenant's employees,
agents, contractors, consultants, partners, affiliates, assignees
and  subtenants, not to disclose the terms of this Lease  or  the
results  of any audit of Landlord's books and records under  this
Lease to any third party except (i) legal counsel to Tenant, (ii)
any  assignee of Tenant's interest in this Lease or any subtenant
of  Tenant  relative  to the Premises (or any  portion  thereof),
(iii)  as  required  by applicable law or by  subpoena  or  other
similar legal process, or (iv) for financial reporting purposes.

     52.  Contractual Landlord's Lien.  - Intentionally deleted.

      53.   Rent a Separate Covenant.  Tenant shall not  for  any
reason  withhold  or reduce Tenant's required payments  of  Basic
Rent and other charges provided in this Lease, it being expressly
understood  and  agreed contractually by  the  parties  that  the
payment  of  Basic  Rent,  Additional  Rent,  and  other  charges
provided  under  this Lease is a contractual covenant  by  Tenant
that  is independent of the other covenants of the parties  under
this Lease.

     54.  Radon.

      As  required by Florida Statutes, 404.056(6) 1995, Landlord
notifies Tenant as follows:

      "RADON GAS: Radon is a naturally occurring radioactive gas,
that  when  it  has  accumulated  in  a  building  in  sufficient
quantities, it may present health risk to persons who are exposed
to  it  over time.  Levels of Radon that exceed federal and state
guidelines  have been found in buildings in Florida.   Additional
information  regarding Radon and Radon testing  may  be  obtained
from your county public health unit."

     55.  Miscellaneous Provisions.

      The  entire  agreement,  intent and  understanding  between
Landlord and Tenant is contained in the provisions of this  Lease
and   the   exhibits   attached  hereto  and  any   stipulations,
representations, promises or agreements, written  or  oral,  made
prior to or contemporaneously with this Lease shall have no legal
or  equitable  effect or consequence unless  reduced  to  writing
herein or in the exhibits attached hereto. This Lease may not  be
modified  except  by a written instrument by the parties  hereto.
The  terms  "Landlord"  and "Tenant" and  all  pronouns  relating
thereto  shall  be  deemed  to  mean  and  include  corporations,
partnerships  and  individuals as may fit the  context,  and  the
masculine gender shall be deemed to include the feminine and  the
neuter, and the singular number, the plural.

     56.  Renewal Option.

      Tenant  shall have the option to renew this Lease  for  one
Renewal Term of five (5) years at the then current market  rental
rate  for  renewal leases of tenants having uses and  improvement
requirements similar to Tenant in comparable office buildings  in
the  northern suburbs of Orlando, Florida, as such market  rental
rate  is reasonably determined by agreement between Landlord  and
Tenant.   Tenant  shall exercise such renewal option  by  written
notice  to Landlord given not less than nine (9) months prior  to
the  end  of  the  initial Lease Term.  If Landlord  and  Tenant,
acting  in  good faith, have not, within thirty (30)  days  after
such  exercise, executed a renewal amendment to this Lease  which
amendment  states, inter alia, the rental rate applicable  during
the  Renewal  Term, then such renewal exercise  shall  be  deemed
cancelled  and  withdrawn unless Tenant agrees to use  the  three
appraiser  method described below.  In such event,  Landlord  and
Tenant  shall each select an MAI appraiser, who, in  turn,  shall
select  a  third  MAI  appraiser.   The  three  appraisers  shall
determine  by majority action the market rental rate for  renewal
leases  of  tenants  having  uses  and  improvement  requirements
similar  to Tenant in comparable office buildings in the northern
suburbs  of  Orlando, Florida.  The determination  of  the  three
appraisers  shall  be binding on Landlord and  Tenant  and  shall
establish the rental rate during the Renewal Term.  Landlord  and
Tenant  shall  each bear the cost of the appraiser they  selected
and  shall share equally the cost of the third appraiser.  Tenant
may  exercise its option to renew and Tenant's exercise  of  that
option  shall  be  effective only if, at  the  time  of  Tenant's
exercise and on the commencement date of Renewal Term, this Lease
is  in  full force and effect and Tenant is not in default  under
this  Lease  beyond  any  applicable cure period;  provided  that
Tenant  must, in any event, cure any then existing default within
its  applicable cure period or such exercise shall, at Landlord's
option,  be deemed ineffective and null and void in its entirety.
Upon  exercise  of  the renewal option and determination  of  the
rental rate, the Lease shall be extended for the Renewal Term.

     57.  WAIVER OF JURY TRIAL.

     THE PARTIES HERETO SHALL, AND THEY HEREBY DO, WAIVE TRIAL BY
JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM BROUGHT BY EITHER
OF THE PARTIES HERETO AGAINST THE OTHER ON ANY MATTERS WHATSOEVER
ARISING  OUT  OF, OR IN ANY WAY CONNECTED WITH, THIS  LEASE,  THE
RELATIONSHIP OF LANDLORD AND TENANT, TENANT'S USE OR OCCUPANCY OF
THE  PREMISES AND/OR BUILDING AND/OR CLAIM OR INJURY  OR  DAMAGE.
IN  THE EVENT LANDLORD COMMENCES ANY PROCEEDINGS TO ENFORCE  THIS
LEASE OR THE LANDLORD/TENANT RELATIONSHIP BETWEEN THE PARTIES  OR
FOR  NON-PAYMENT  OF  BASIC  RENT OF ANY  NATURE  WHATSOEVER,  OR
ADDITIONAL  MONIES  DUE LANDLORD FROM TENANT  UNDER  THIS  LEASE,
TENANT WILL NOT INTERPOSE ANY COUNTERCLAIM OF WHATEVER NATURE  OR
DESCRIPTION  IN ANY SUCH PROCEEDINGS.  IN THE EVENT TENANT  MUST,
BECAUSE OF APPLICABLE COURT RULES, INTERPOSE ANY COUNTERCLAIM  OR
OTHER  CLAIM  AGAINST  SUCH PROCEEDING THE  LANDLORD  AND  TENANT
COVENANT  AND AGREE THAT, IN ADDITION TO ANY OTHER LAWFUL  REMEDY
OF  LANDLORD UPON MOTION OF LANDLORD, SUCH COUNTERCLAIM OR  OTHER
CLAIM  ASSERTED BY TENANT SHALL BE SEVERED OUT OF THE PROCEEDINGS
INSTITUTED BY LANDLORD AND, IF NECESSARY, TRANSFERRED TO A  COURT
OF  DIFFERENT  JURISDICTION, AND THE  PROCEEDINGS  INSTITUTED  BY
LANDLORD MAY PROCEED TO FINAL JUDGMENT SEPARATELY AND APART  FROM
AND WITHOUT CONSOLIDATION WITH OR REFERENCE TO THE STATUS OF EACH
COUNTERCLAIM OR ANY CLAIM ASSERTED BY TENANT.

      IN  WITNESS WHEREOF, Landlord and Tenant have executed this
Lease  in  multiple original counterparts as of the day and  year
first above written.

Signed, sealed and delivered       LANDLORD
in the presence of:
                                   CRESCENT RESOURCES, INC.,
                                    a South Carolina corporation

/s/ Brandee Barnhill                By: /s/ Robert J. Holmes, Jr.
Print Name: Brandee Barnhill       Name: Robert J. Holmes
/s/ Donna Hughes                   Title: Regional Vice President
Print Name: Donna Hughes

                                   TENANT:

                                   BAIRNCO CORPORATION,
                                    a Delaware corporation

/s/ Paula H. Godbee                      By: /s/ James W. Lambert
Print Name:    Paula H. Godbee         Name: James W. Lambert
/s/ Larry C. Maingot                  Title: Corporate Controller
Print Name:    Larry C. Maingot

                           EXHIBIT A
                      Description of Land

      All that certain tract or parcel of land lying and being in
the  City of Lake Mary, Seminole County, Florida, and being  more
particularly described as follows:
          SECTION 7, TOWNSHIP 20 SOUTH, RANGE 30 EAST
        THE CITY OF LAKE MARY, SEMINOLE COUNTY, FLORIDA
A  PORTION  OF  SECTION  7, TOWNSHIP 20  SOUTH,  RANGE  30  EAST,
SEMINOLE  COUNTY, FLORIDA, BEING MORE PARTICULARLY  DESCRIBED  AS
FOLLOWS:   BEGIN AT THE CENTER OF SECTION 7, TOWNSHIP  20  SOUTH,
RANGE  30  EAST,  SEMINOLE COUNTY, FLORIDA AND RUN  N  8940'59"E,
213.49  FEET  TO  A  POINT ON THE WESTERLY RIGHT-OF-WAY  LINE  OF
PRIMERA  BOULEVARD,  PRIMERA PHASE  II,  ACCORDING  TO  THE  PLAT
THEREOF AS RECORDED IN PLAT BOOK 53, PAGES 52 THROUGH 54  OF  THE
PUBLIC RECORDS OF SEMINOLE COUNTY, FLORIDA, SAID POINT BEING ON A
CURVE  CONCAVE  NORTHWESTERLY HAVING A RADIUS OF 773.02  FEET,  A
CHORD  OF 142.57 FEET AND A CHORD BEARING OF S 0650'37"W;  THENCE
RUN SOUTHWESTERLY ALONG SAID CURVE AND WESTERLY RIGHT-OF-WAY LINE
142.77  FEET THROUGH A CENTRAL ANGLE OF 1034'55" TO  THE  END  OF
SAID WESTERLY RIGHT-OF-WAY LINE AND THE BEGINNING OF THE WESTERLY
RIGHT-OF-WAY  LINE  OF  PRIMERA  BOULEVARD,  PRIMERA   PHASE   I,
ACCORDING TO THE PLAT THEREOF AS RECORDED IN PLAT BOOK 49,  PAGES
88  THROUGH 91 OF THE PUBLIC RECORDS OF SEMINOLE COUNTY, FLORIDA,
SAID POINT BEING ON A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS
OF  773.02  FEET,  A CHORD OF 59.92 FEET AND A CHORD  BEARING  OF
S  1421'20"W;  THENCE  RUN SOUTHWESTERLY  ALONG  SAID  CURVE  AND
WESTERLY RIGHT-OF-WAY LINE 59.94 FEET THROUGH A CENTRAL ANGLE  OF
426'33"  TO  A  POINT OF COMPOUND CURVATURE OF  A  CURVE  CONCAVE
NORTHWESTERLY HAVING A RADIUS OF 346.19 FEET, A CHORD  OF  280.92
FEET AND A CHORD BEARING OF S 4030'50"W; THENCE RUN SOUTHWESTERLY
ALONG  SAID  CURVE  AND WESTERLY RIGHT-OF-WAY  LINE  289.26  FEET
THROUGH  A  CENTRAL  ANGLE OF 4752'27" TO A  POINT  OF  TANGENCY;
THENCE  RUN  S  6427'07"W ALONG SAID WESTERLY RIGHT-OF-WAY  LINE,
32.40  FEET  TO  THE  POINT  OF  CURVATURE  OF  A  CURVE  CONCAVE
NORTHWESTERLY HAVING A RADIUS OF 805.02 FEET, A CHORD  OF  167.68
FEET AND A CHORD BEARING OF S 7613'03"W; THENCE RUN SOUTHWESTERLY
ALONG  SAID  CURVE  AND WESTERLY RIGHT-OF-WAY  LINE  330.63  FEET
THROUGH  A  CENTRAL  ANGLE OF 2331'55"  TO  A  POINT  OF  REVERSE
CURVATURE  ON A CURVE CONCAVE SOUTHEASTERLY HAVING  A  RADIUS  OF
519.98  FEET,  A  CHORD OF 167.54 FEET AND  A  CHORD  BEARING  OF
S  7842'51"W;  THENCE  RUN SOUTHWESTERLY  ALONG  SAID  CURVE  AND
WESTERLY RIGHT-OF-WAY LINE 168.27 FEET THROUGH A CENTRAL ANGLE OF
1832'30";  THENCE  LEAVING SAID WESTERLY  RIGHT-OF-WAY  LINE  RUN
N  0912'05"W,  505.18 FEET; THENCE RUN S 8940'59"W, 559.42  FEET;
THENCE  RUN N 0019'01"W, 35.00 FEET TO A POINT ON THE NORTH  LINE
OF  THE  SOUTHWEST 1/4 OF SAID SECTION 7; THENCE RUN N  8940'59"E
ALONG  THE  NORTH  LINE OF THE SOUTHWEST 1/4 OF SAID  SECTION  7,
1153.66  FEET  TO  THE  POINT OF BEGINNING  CONTAINING  356347.77
SQUARE FEET (8.1806 ACRES).
                              A-1

                           EXHIBIT B

                    Designation of Premises

                  Graphic display of property

                              B-1

                           EXHIBIT C
                  Construction of Improvements
1.   Building  Shell  Improvements. Landlord, at Landlord's  sole
     cost, shall complete or has completed the following as  part
     of the Building Shell Improvements:

               2'  x  2'  ceiling grid installed at 9' above  the
          finished floor
               2'  x  2' tegular acoustical ceiling tile  (to  be
          stacked on the floor in the Premises)
              columns wrapped with drywall
               high  efficiency 2' x 4, 3 lamp fixtures with  18-
          cell  parabolic  lenses and lights at a  ratio  of  one
          fixture per 75 square feet of Premises Net Usable  Area
          (to be stacked on the floor in the Premises)
              low pressure and medium pressure duct work
               interior  VAV boxes installed with thermostats  at
          the  rate  of  approximately one (1) per  2,665  usable
          square feet
               perimeter  VAV  boxes installed to perimeter  slot
          diffusers  at  the rate of approximately  one  (1)  per
          2,190 usable square feet
                Building  standard  fire  sprinkler  system   (in
          accordance  with  applicable code  requirements),  with
          heads turned up
               demising walls: Landlord shall pay for the cost of
          the  demising walls between the Premises and the Common
          Areas and Tenant shall pay for one-half of the cost  of
          the  demising  walls  between the  Premises  and  other
          tenant space in the Building
              blinds for exterior windows

2.    Preparation and Approval of Tenant Improvements  Plans  and
Specifications. As soon as reasonably practicable  following  the
Lease  Date, Landlord shall proceed to have Landlord's  architect
prepare   a   draft   of  the  Tenant  Improvements   Plans   and
Specifications and shall deliver a complete copy  of  the  Tenant
Improvements Plans and Specifications together with  an  itemized
construction cost proposal (the "Budget") to Tenant for  Tenant's
review  and approval. Tenant shall review the draft of the Tenant
Improvements Plans and Specifications and Budget and shall notify
Landlord  in writing within five (5) business days after Tenant's
receipt  of  same  as  to  whether  Tenant  approves  the  Tenant
Improvements Plans and Specifications and Budget; and  if  Tenant
does not approve the Tenant Improvements Plans and Specifications
and  Budget,  such written notice from Tenant to  Landlord  shall
provide  Tenant's specific and detailed comments and  suggestions
which,  if  incorporated  in the Tenant  Improvements  Plans  and
Specifications  would  render the Tenant Improvements  Plans  and
Specifications  and  Budget acceptable to  Tenant.  Landlord  and
Tenant  shall cooperate with one another in good faith  to  reach
agreement   regarding   the   Tenant   Improvements   Plans   and
Specifications  and  Budget as soon as practicable,  and  in  any
event  Tenant  shall  approve the Tenant Improvements  Plans  and
Specifications  if  they  are prepared  in  accordance  with  and
consistent  with  the preliminary plans and specifications  which
are attached as Exhibit I to the Lease.  Within fifteen (15) days
after   the   parties  approve  Tenant  Improvement   Plans   and
Specifications, Landlord shall submit such plans to the  City  of
Lake Mary for issuance of a building permit.  Any changes to  the
approved  Tenant Improvement Plans and Specifications and  Budget
shall  be  documented by change order approved  by  Landlord  and
Tenant.   In  the  event Landlord and Tenant  are  unable,  after
complying  with  the  foregoing  terms  and  provisions  in  this
Paragraph 2, to reach agreement regarding the Tenant Improvements
Plans  and Specifications and Budget within fifteen (15) business
days after the date on which

                              C-1

Landlord  initially delivers the draft of the Tenant Improvements
Plans and Specifications and
Budget to Tenant pursuant to this Paragraph 2 and until such time
as  Landlord and Tenant succeed in reaching agreement relative to
the  Tenant  Improvements  Plans and Specifications  and  Budget,
Landlord may terminate the Lease by giving written notice of such
action to Tenant.

                           EXHIBIT D
                Cleaning and Janitorial Services

LANDLORD  SHALL FURNISH CLEANING AND JANITORIAL SERVICES  TO  THE
PREMISES AS DESCRIBED BELOW:

DAILY (Monday - Friday):

               Sweep,  dry  mop  or vacuum, as  appropriate,  all
          floor  areas; remove material such as gum and tar which
          has adhered to the floor.

               Empty  and damp wipe all ash trays, waste  baskets
          and  containers,  remove  all  trash  from  the  leased
          premises.

               Dust  all cleared horizontal surfaces with treated
          dust  cloth,  including furniture,  files,  telephones,
          equipment that can be reached without a ladder.

                Spot   wash   to   remove  smudges,   marks   and
          fingerprints  from  such  areas  that  can  be  reached
          without a ladder.

                Clean  water  fountains,  cafeteria  tables   and
          chairs.

               Damp mop all non-resilient floors such as terrazzo
          and ceramic tile.

               Clean  freight  and passenger  elevator  cabs  and
          landing doors.

               Clean  mirrors,  soap  dispensers,  shelves,  wash
          basins,   exposed  plumbing,  dispenser  and   disposal
          container  exteriors,  damp  wipe  all  ledges,  toilet
          stalls and toilet doors.

                Clean   toilets   and  urinals   with   detergent
          disinfectants.

               Furnish  and  refill  all soap,  toilet,  sanitary
          napkin and towel dispensers.

              Spot clean carpet stains.

               Wash  glass in Building directory, entrance  doors
          and frames.

                Remove  all  litter  from  the  parking  lot  and
          grounds.

WEEKLY:

              Dust vertical blinds and louvers.

               Spot  wash interior partition glass and door glass
          to remove smudge marks.

              Sweep all stairs areas.

                              D-1

              Dust all baseboards.

              Vacuum or brush all fabric covered chairs.

MONTHLY:

              Scrub and recondition resilient floor areas.

              Wash all stairwell landings and treads.

              Wash all interior glass both sides.

QUARTERLY:

               High dust all horizontal and vertical surfaces not
          reached by nightly cleaning.

               Vacuum all ceiling and wall air supply and exhaust
          diffusers and grills.

               Wash  and  polish  vertical  terrazzo  and  marble
          surfaces.

              Spot clean carpeted areas.

SEMI-ANNUALLY:

              Vacuum drapes, cornices and wall hangings.

              Dust all storage areas and shelves and contents.

              Damp wash diffusers, grills, and other such items.

ANNUALLY:

         Strip and refinish all resilient floors.

         Wash all building exterior glass both sides.

          Clean light fixtures, reflectors, globes, diffusers and
trim.

               Wash  walls  in  corridors,  lounges,  classrooms,
          demonstration   areas,   cafeterias,    break    rooms,
          washrooms.

               Clean all vertical surfaces not attended to during
          nightly, weekly, quarterly or semi-annually cleaning.

     Landlord  will  provide a day porter for use throughout  the
     Building on business days, Monday through Friday.

                              D-2

                           EXHIBIT E

                     Rules and Regulations

      1.   Sidewalks, doorways, vestibules, halls, stairways, and
similar   areas  shall  not  be  obstructed  nor  shall   refuse,
furniture,  boxes or other items be placed therein by any  tenant
or  its officers, agents, servants, and employees, or be used for
any purpose other than ingress and egress to and from premises in
the  Building,  or  for going from one part of  the  Building  to
another part of the Building. Canvassing, soliciting and peddling
in the Building are prohibited.

      2.    Plumbing, fixtures and appliances shall be used  only
for  the  purposes  for  which  constructed,  and  no  unsuitable
material shall be placed therein.

      3.    No  signs,  directories, posters, advertisements,  or
notices  shall be painted or affixed on or to any of the  windows
or  doors, or in corridors or other parts of the Building, except
in  such color, size, and style, and in such places, as shall  be
first approved in writing by Landlord in its discretion. However,
the  prohibition in the immediately preceding sentence shall  not
limit  or  restrict  any tenant's right to  maintain  within  the
premises occupied by such tenant any signs, directories, posters,
advertisements, or notices so long as such items are not  visible
from the exterior of the premises occupied by such tenant or from
the  Common  Areas  of  the  Building.  Building  standard  suite
identification  signs  will  be  prepared  by  Landlord  at  each
tenant's  expense. Landlord shall have the right  to  remove  all
unapproved signs without notice to any tenant, at the expense  of
the responsible tenant.

      4.   No tenant shall do, or permit anything to be done,  in
or  about  the Building, or bring or keep anything therein,  that
will  in any way increase the rate of fire or other insurance  on
the  Building, or on property kept therein or otherwise  increase
the possibility of fire or other casualty.

      5.    Landlord shall have the power to prescribe the weight
and  position of heavy equipment or objects which may  overstress
any  portion of the floor. All damage done to the Building by the
improper placing of such heavy items will be repaired at the sole
expense of the responsible tenant.

      6.    Each  tenant shall notify the Building  manager  when
safes  or other heavy equipment are to be taken in or out of  the
Building,  and the moving shall be done after written  permission
is  obtained  from Landlord on such conditions as Landlord  shall
require.

      7.    All  deliveries must be made via the service entrance
and service elevator, when provided, during normal working hours.
Landlord's  written approval must be obtained  for  any  delivery
after normal working hours.

      8.    Each tenant shall cooperate with Landlord's employees
in keeping such tenant's premises neat and clean.

      9.    Each  tenant shall not cause or permit  any  improper
noises  in  the Building, allow any unpleasant odors  to  emanate
from the Premises, or otherwise interfere, injure or annoy in
                              E-1
any  way  other  tenants or persons having  business  with  them.
However,  Landlord  acknowledges  that,  if  permitted   by   the
applicable  lease, a tenant may operate a food services  facility
within  the premises of such tenant for the sole use and  benefit
of  the  occupants of such premises and that such  food  services
facility may emit odors normally associated with the operation of
such on-site food services facilities.

      10.   No animals shall be brought into or kept in or  about
the Building.

      11.  When conditions are such that a tenant must dispose of
crates,   boxes,   etc.  on  the  sidewalk,  it   will   be   the
responsibility of such tenant to dispose of same  prior  to  7:30
a.m. or after 5:30 p.m.

      12.   No machinery of any kind, other than ordinary  office
machines  such  as  typewriters, information processing  systems,
copy machines, communications equipment and calculators, shall be
operated  in  any  premises  in the Building  without  the  prior
written consent of Landlord, nor shall any tenant use or keep  in
the  Building  any  inflammable or explosive fluid  or  substance
(including  Christmas trees and ornaments), or  any  illuminating
materials.  No  space heaters or fans shall be  operated  in  the
Building.

      13.  No motorcycles or similar vehicles will be allowed  in
the Building.

      14.   No  nails, hooks, or screws shall be driven  into  or
inserted  in  any  part of the Building, except  as  approved  by
Building maintenance personnel. Notwithstanding the foregoing,  a
tenant  may  decorate the interior of such tenant's  premises  at
such  tenant's sole discretion provided such decorations  do  not
impact  the  structural integrity of the Building and  cannot  be
seen  from the exterior of the Building or from any Common  Areas
of the Building.

      15.  Landlord has the right to evacuate the Building in the
event of an emergency or catastrophe.

      16.  No food and/or beverages shall be distributed from any
tenant's  office  without  the  prior  written  approval  of  the
Building  manager.  But a tenant may prepare coffee  and  similar
beverages and warm typical luncheon items for the consumption  of
such  tenant's  employees  and  invitees.  Furthermore,  Landlord
acknowledges that, if permitted by the applicable lease, a tenant
may  operate a food services facility within the premises of such
tenant  for  the  sole use and benefit of the occupants  of  such
premises.

      17.   No  additional locks shall be placed upon  any  doors
without the prior written consent of Landlord. All necessary keys
or  access cards or codes shall be furnished by Landlord, and the
same  shall  be  surrendered upon termination of  the  applicable
lease,  and  each tenant shall then give Landlord  or  Landlord's
agent an explanation of the combination of all locks on the doors
or  vaults.  Replacement keys or access  cards  or  codes  (i.e.,
replacements for keys or access cards or codes previously  issued
by  Landlord)  shall be obtained only from Landlord,  and  Tenant
shall  pay  to Landlord (as Additional Rent, within  thirty  (30)
days  after Tenant receives an invoice therefor) the actual costs
incurred by Landlord in obtaining and issuing replacement keys or
access  cards  or  codes  for  keys  or  access  cards  or  codes
previously issued.

                              E-2

      18.   Tenants  will  not  locate  furnishings  or  cabinets
adjacent  to mechanical or electrical access panels or  over  air
conditioning  outlets so as to prevent operating  personnel  from
servicing such units as routine or emergency access may  require.
Cost of moving such furnishings for Landlord's access will be for
the   responsible   tenant's  account.  The  lighting   and   air
conditioning equipment of the Building will remain the  exclusive
charge of the Building designated personnel.

      19.  Each tenant shall comply with reasonable parking rules
and regulations as may be posted and distributed by Landlord from
time to time.

      20.   No  portion  of the Building shall be  used  for  the
purpose of lodging rooms.

      21.   Prior  written approval, which shall be at Landlord's
sole  discretion,  must  be obtained for installation  of  window
shades, blinds, drapes, or any other window treatment of any kind
whatsoever. Landlord will control all internal lighting that  may
be  visible from the exterior of the Building and shall have  the
right  to change any unapproved lighting, without notice  to  the
responsible tenant, at the responsible tenant's expense.

      22.  No tenant shall make any changes or alterations to any
portion   of  the  Building  without  Landlord's  prior   written
approval,  which may be given on such conditions as Landlord  may
elect.  All  such work shall be done by Landlord or  by  licensed
contractors and/or workmen.

                              E-3

                           EXHIBIT F

                      Special Stipulations

                        [NOT APPLICABLE]

The  foregoing Special Stipulations are hereby incorporated  into
and  made  a part of the Lease Agreement.  In the event, however,
of  a conflict between the terms of the Special Stipulations  and
the  terms of the Lease Agreement, the Special Stipulations shall
control.

Initial: RJH_______ (For Landlord)
Initial: JWL______ (For Tenant)

                              F-1

                           EXHIBIT G

                  GUARANTY OF LEASE AGREEMENT

                        [NOT APPLICABLE]

                              G-1

                           EXHIBIT H

                 Commencement Date Stipulation

      Pursuant  to  that  certain Lease  Agreement  (the  "Lease)
between  CRESCENT  RESOURCES, INC. (the "Landlord")  and  Bairnco
Corporation (the "Tenant") dated as of May 17, 1999, for  certain
premises in The Crescent at Primera, Building Four located at 300
Primera Boulevard, Lake Mary, Florida 32746, Landlord and  Tenant
hereby stipulate and certify that:

          1.  The Commencement Date under the Lease is September,
          and  the  expiration date of the Lease Term  is  August
          31, 2009.

          2.  Tenant's  obligation to pay Rent  under  the  Lease
          commenced on January 1, 2000.

       The   terms  and  provisions  of  this  Commencement  Date
Stipulation are hereby incorporated into the Lease and modify any
and all provisions to the contrary contained therein.

     Executed under seal as of the 25th day of January, 2000.

                                   TENANT:

                                   BAIRNCO CORPORATION
                                   a Delaware corporation

                                   By: /s/ James W. Lambert
                                   Name: James W. Lambert
                                   Title: VP Finance

                                   LANDLORD:

                                   CRESCENT RESOURCES, INC.,
                                    a South Carolina corporation

                                   By: /s/ Robert J. Holmes, Jr.
                                   Name: Robert J. Holmes, Jr.
                                   Title: Vice President

                              H-1

                           EXHIBIT I

    Preliminary Tenant Improvements Plans and Specifications

                        [TO BE PROVIDED]

                              I-1

                    FIRST AMENDMENT TO LEASE

      THIS  FIRST  AMENDMENT TO LEASE (the "First Amendment")  is
dated  as  of  the  31 day of May, 1999, by and between  CRESCENT
RESOURCES,  INC.,  a South Carolina corporation (the  "Landlord")
and BAIRNCO CORPORATION, a Delaware corporation (the "Tenant").

                            RECITALS

      A.   Landlord and Tenant entered into a certain Lease dated
as  of  May 17, 1999 (the "Lease") with respect to certain  space
described therein as Suite 432 and located on the fourth floor of
the Crescent at Primera, Building Four.

      B.    The  parties  wish  to change the  Commencement  Date
described  in  the Lease Summary to provide more time  to  obtain
bids for construction of the Tenant Improvements.

                           AMENDMENT

      NOW,  THEREFORE, in consideration of the premises  and  the
mutual  covenants contained herein, Landlord and Tenant do hereby
agree as follows:

           1.   Defined Terms; Recitals.  Except as otherwise set
forth  herein, all terms contained in this First Amendment  shall
have  the  same  meaning  ascribed to them  in  the  Lease.   The
Recitals set forth above are true and correct.

            2.     Commencement  Date.   The  Commencement   Date
identified in the Lease Summary is hereby amended to September 1,
1999.  The parties acknowledge that such Commencement Date  is  a
target  date and that the actual Commencement Date of  the  Lease
shall be determined pursuant to Paragraph 3 of the Lease.

           3.    Binding Effect.  The Lease, as modified by  this
First  Amendment, and all covenants, agreements, exhibits,  terms
and  conditions contained therein, shall remain in full force and
effect  and is hereby ratified and confirmed.  The provisions  of
this First Amendment shall control any conflicting provisions  of
the Lease.

      IN  WITNESS WHEREOF, Landlord and Tenant have executed this
First Amendment as of the day and year first above written.

                                   LANDLORD

                                   CRESCENT RESOURCES, INC.

/s/ Brandee Barnhill               By: /s/ Robert J. Holmes, Jr.
Witness                            Name:  Robert J. Holmes
                                   Title:  Regional Vice President

                                   TENANT

                                   BAIRNCO CORPORATION

/s/ Paula H. Godbee                By: /s/ James W. Lambert
    Witness                        Name: James W. Lambert
                                   Title:  Corporate Controller
/s/ Larry C. Maingot
    Witness

                   SECOND AMENDMENT TO LEASE

      THIS SECOND AMENDMENT TO LEASE (the "Second Amendment")  is
dated  as  of the 31 day of August, 1999, by and between CRESCENT
RESOURCES,  INC.,  a South Carolina corporation (the  "Landlord")
and BAIRNCO CORPORATION, a Delaware corporation (the "Tenant").

                            RECITALS

      A.   Landlord and Tenant entered into a certain Lease dated
as  of  May 17, 1999 as amended by First Amendment dated May  31,
1999,  (the  "Lease")  with respect to  certain  space  described
therein  as  Suite  432 and located on the fourth  floor  of  the
Crescent at Primera, Building Four.

      B.    Tenant desires to install two satellite communication
dishes  on  the Building and Landlord is willing to  permit  such
installation   in  accordance  with  the  terms  and   conditions
described in this Second Amendment.

                           AMENDMENT

      NOW,  THEREFORE, in consideration of the premises  and  the
mutual  covenants contained herein, Landlord and Tenant do hereby
agree as follows:

           1.   Defined Terms; Recitals.  Except as otherwise set
forth  herein, all terms contained in this Second Amendment shall
have  the  same  meaning  ascribed to them  in  the  Lease.   The
Recitals set forth above are true and correct.

           2.    Telecommunications Equipment.  Tenant shall have
the right to install and maintain on the roof of the Building  or
in  another  location  approved by Landlord  two  (2)  satellite/
microwave   communication  antenna  and  related   cabling   (the
"Equipment")  for  the  purpose  of  transmitting  and  receiving
telecommunication signals.  The location, size, design, color and
style of the Equipment shall be subject to reasonable approval of
Landlord.   Tenant  shall comply with all ordinances,  codes  and
regulations regarding the Equipment and shall obtain all  permits
required therefore.  The cost of installation (including the cost
of Landlord's roofer or engineer to supervise roof penetrations),
operation, maintenance and removal of the Equipment shall be  the
obligation of Tenant including the cost of repair for  damage  to
any   portion  of  the  Building  caused  by  such  installation,
operation,  maintenance or removal.  Upon the expiration  of  the
Lease Term or the earlier termination of this Lease, Tenant shall
promptly  remove  the Equipment and repair  any  portion  of  the
Building  which was altered or damaged in any way  in  connection
with  the installation, operation, maintenance or removal of  the
Equipment.   Tenant  shall indemnify and hold  Landlord  harmless
from  any  and  all  damages, injury, loss, liability,  costs  or
claims resulting from the installation, operation, maintenance or
removal  of  the  equipment, including any injury  to  person  or
damage to the roof or any other part of the Building.

           3.    Binding Effect.  The Lease, as modified by  this
Second Amendment, and all covenants, agreements, exhibits,  terms
and  conditions contained therein, shall remain in full force and
effect  and is hereby ratified and confirmed.  The provisions  of
this Second Amendment shall control any conflicting provisions of
the Lease.

      IN  WITNESS WHEREOF, Landlord and Tenant have executed this
Second Amendment as of the day and year first above written.

                                   LANDLORD

                                   CRESCENT RESOURCES, INC.

/s/ Brandee L. Barnhill            By: /s/Robert J. Holmes, Jr.
    Witness                        Name: Robert J. Holmes, Jr.
                                   Title:  Vice President

                                   TENANT

                                   BAIRNCO CORPORATION

/s/ Larry C. Maingot               By:  /s/ James W. Lambert
    Witness                        Name: James W. Lambert
                                   Title:  Corporate Controller
/s/ Paula H. Godbee
    Witness

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