Document:

<PAGE>

                                                                   Exhibit 10.18

                              INGALLS OFFICE LEASE

     THIS OFFICE LEASE ("Lease") is made this 10th day of December, 2001, by and
between (i) INGALLS BUILDING CO. LTD., an Ohio limited liability company
("Landlord") and (ii) Grad Partners, Inc., a Delaware Corporation ("Tenant") as
follows:

                                    RECITALS

     A.   Landlord is the owner of the real property located at 6 East Fourth
          Street, Cincinnati, Ohio 45202 (the "Property"). The Property is
          improved by a 15-story building and certain other improvements
          (collectively, the "Building").

     B.   Tenant desires to lease from Landlord and Landlord desires to lease to
          Tenant approximately four thousand, seven hundred and twenty-eight
          (4,728) rentable square feet of space known as Suite 300, located on
          the Third (3rd) floor of the Building outlined in red on the floor
          plan attached hereto as Exhibit A (the "Premises"), together with the
          nonexclusive right to use all areas of the Property not regularly and
          customarily leased for the exclusive use of tenants including, but not
          limited to, lobbies, entranceways, vestibules, elevators, restrooms,
          common hallways and common stairs (collectively, the "Common Areas")
          for the Term, the Rent and subject to the conditions and covenants
          hereinafter provided. Notwithstanding the foregoing, the Premises do
          not include and Tenant will have no right to occupy any of the
          exterior surfaces of the Building.

     C.   Notwithstanding the foregoing, Landlord hereby acknowledges that
          pursuant to the Ingalls Office Lease between Tenant and Landlord,
          dated July 30, 2001, Tenant is currently leasing approximately two
          thousand three hundred and sixty-four (2,364) rentable square feet,
          and at the time of occupancy of the additional leased space adjacent
          to the Premises currently occupied by Tenant, the existing Lease shall
          terminate in accordance with the provisions of Exhibit E attached
          hereto.

                                    AGREEMENT

     NOW THEREFORE, in consideration of the premises and the mutual promises set
forth herein, the receipt and sufficiency of which are hereby acknowledged, the
parties hereby agree as follows:

     1. Term.

          1.1 Initial Term. Subject to and upon the terms and conditions set
forth herein or in any exhibit or addendum hereto, this Lease shall continue in
force for a term of Sixty (60) months (the "Term") commencing on the earlier of
the following dates (the "Commencement Date") (i) the date Tenant takes
occupancy of the Premises, or (ii) the date Landlord has substantially completed
its improvements to the Premises.

                                       1.

<PAGE>

     2. Rent.

          2.1 Base Rent Initial Term. Tenant shall pay to Landlord as "Base
Rent" for the Initial Term, in legal tender and in immediately available funds,
at Landlord's office at 6 East Fourth Street, Suite 1200, Cincinnati, Ohio
45202, or as directed from time to time by Landlord's notice, the sums set forth
below:

<TABLE>
<CAPTION>
Period                         Annual Rate/RSF            Annual Rent         Monthly Rent
------                         ---------------            -----------         ------------
<S>                            <C>                        <C>                 <C>
02/01/02 to 03/01/03               $11.50                 $54,372.00            $4,531.00
03/01/03 to 03/31/07               $12.00                 $56,736.00            $4,728.00
</TABLE>

          2.2 Base Rent Renewal Term. Tenant shall pay to Landlord as "Base
Rent" for the Renewal Term(s), in legal tender and in immediately available
funds, at Landlord's office at Ingalls Building Co. Ltd., 6 East Fourth Street,
Suite 1200, Cincinnati, OH 45202, or as directed from time to time by Landlord's
notice,

          2.3 Additional Rent.

               2.3.1 In addition to the Base Rent specified in Section 2.1
above, Tenant agrees to pay Tenant's Share (as hereinafter defined) of the
amount, if any, by which the Operating Expenses and Taxes for any calendar year
during the Term after 2001 exceeds the Taxes and Operating Expenses for 2001
(the amount of any such excess being called the "Additional Rent"). Certain
terms are defined as follows:

               2.3.1.1 Tenant's Share: The amount of Tenant's pro rata share of
the Expense Escalation for any calendar year after 2001. Tenant's pro rata share
is agreed to be Four Percent (4%), which shall be adjusted in the event that the
total rentable square feet changes.

               2.3.1.2 Taxes: (i) All real estate taxes, if any, payable
(adjusted after protest or litigation, if any) for any part of the Term of this
Lease, exclusive of penalties or discounts, on the Property, (ii) any taxes
which shall be levied in lieu of any such taxes on the gross rentals of the
Property, (iii) any special assessments against the Property which shall be
required to be paid during the calendar year in respect to which taxes are being
determined, and (iv) the expense of contesting the amount or validity of any
such taxes, charges or assessments, such expense to be applicable to the period
of the item contested.

               2.3.1.3 Operating Expenses: Those expenses incurred or paid on
behalf of Landlord with respect to the management, operation and maintenance of
the Property which, in accordance with accepted principles of sound accounting
practice used by Landlord, as applied to the operation, management and
maintenance of comparable office buildings, are properly chargeable to the
operation and maintenance of the Property, and the cost, as reasonably amortized
by Landlord, with interest at the rate of 10% per annum on the unamortized
amount, of any capital improvement made after completion of initial construction
of the Building which reduces other Operating Expenses, but in an amount not to
exceed such reduction for the relevant year. If Landlord is not furnishing any
particular work or service (the

                                       2.

<PAGE>

cost of which if performed by Landlord would constitute an Operating Expense) to
a tenant who has undertaken to perform such work or service in lieu of the
performance thereof by Landlord, Operating Expenses shall be deemed for the
purposes of this Section 2 to be increased by an amount equal to the additional
operating expense which would reasonably have been incurred during such period
by Landlord if it had at its own expense furnished such work or service to such
tenant. Operating Expenses shall not include: (i) franchise or income taxes
imposed on Landlord, except to the extent hereinbefore provided, or (ii) the
cost to Landlord of any work or service performed in any instance for any tenant
(including Tenant) at the cost of such tenant.

               2.3.2 In order to provide for current payments on account of
Taxes and Operating Expenses, Tenant agrees, at Landlord's request, to pay,
Additional Rent due for the ensuing twelve (12) months, as estimated by Landlord
from time to time, in twelve (12) monthly installments, each in an amount equal
to 1/12th of Additional Rent so estimated by Landlord commencing on the first
day of the month following the month in which Landlord notifies Tenant of the
amount of such estimated Additional Rent. If, as finally determined, Additional
Rent shall be greater than or be less than the aggregate of all installments so
paid on account to Landlord for such twelve (12) month period, then Tenant shall
pay to Landlord the amount of such underpayment, or Landlord shall credit Tenant
for the amount of such overpayment, as the case may be. It is the intention
hereunder to estimate the amount of Taxes and Operating Expenses for each year
and then to adjust such estimates in the following year based on actual Taxes
and Operating Expenses incurred and/or paid by Landlord. Within one hundred
twenty (120) days after each calendar year, Landlord shall furnish Tenant with a
statement ("Operating Expense Statement") setting forth the actual Taxes and
Operating Expenses for the calendar year in question.

               2.3.3 Tenant does hereby covenant and agree promptly to pay
Additional Rent as and when the same shall become due and payable, without
further demand therefor (except as set forth herein), and without any set-off,
counterclaim, deduction or recoupment whatsoever. The obligation of Tenant with
respect to the payment of Base Rent and Additional Rent shall survive the
termination of this Lease. Any payment, refund, or credit made pursuant to this
Section 2.3 shall be made without prejudice to any right of Tenant to dispute
such annual statement as provided in paragraph 2.3.4 of this Section 2, or of
Landlord to correct any item(s) as billed pursuant to the provisions hereof.

               2.3.4 Within thirty (30) days after receipt of the Operating
Expense Statement, Tenant or its authorized employee shall have the right to
inspect the books of Landlord during the business hours of Landlord at
Landlord's office or, at Landlord's option, at such other location that Landlord
may specify, for the purpose of verifying information in the Operating Expense
Statement. Unless Tenant asserts specific error(s) within thirty (30) days after
delivery of the Operating Expense Statement, the Operating Expense Statement
shall be deemed to be correct. Tenant shall not be entitled to inspect the books
of the Property for any year other than the year covered by the most recent
Operating Expense Statement.

               2.3.5 No decrease in Taxes and/or Operating Expenses shall reduce
Tenant's Rent below the annual Base Rent set forth in paragraph (a) of this
Section 2.

                                       3.

<PAGE>

               2.3.6 All costs and expenses which Tenant assumes or agrees to
pay to Landlord pursuant to this Lease shall be deemed additional Rent and, in
the event of non-payment thereof, Landlord shall have all the rights and
remedies herein provided for in case of non-payment of Rent.

          2.4 Buyout Option. See Exhibit B-1 attached hereto.

     3. Services. As long as Tenant is not in default under any of the covenants
or provisions of this Lease, Landlord shall maintain (subject to partial
reimbursement as provided in Section 2.3, above) the Premises and the public and
common areas of the Property, such as lobbies, stairs, atriums, landscaping,
corridors and restrooms, in good order and condition except for damage
occasioned by the act of Tenant, its employees, agents or invitees, and Landlord
shall also provide the following services during reasonable and usual business
hours for the Term of this Lease as follows:

          3.1 HVAC. Air conditioning and heat for normal purposes only, to
provide in Landlord's judgment, comfortable occupancy Monday through Friday from
8:00 a.m. to 5:00 p.m. and Saturday from 8:00 a.m. to 12:00 p.m., Sundays and
holidays excepted. Tenant agrees not to use any apparatus or device in, upon or
about the Premises which in any way may increase the amount of such services
usually furnished or supplied to tenants in the Building and Tenant further
agrees not to connect any apparatus or device with the conduits or pipes, or
other means by which such services are supplied, for the purpose of using
additional or unusual amounts of such services, without written consent of
Landlord. Should Tenant use such services under this provision to excess,
Landlord reserves the right to charge for such services. The charge shall be
payable as additional Rent. Should Tenant refuse to make payment upon demand of
Landlord, such excess charge shall constitute a breach of the obligation to pay
Rent under this Lease and shall entitle Landlord to the rights hereinafter
granted for such breach. The A/C unit being installed under Exhibit B-l for
cooling the Computer Room may be run 24 hours 7 days per week at 67 degrees.

          3.2 Electric Power and Lighting. Electric power for lighting, computer
equipment, computer cooling A/C and operation of office machines shall be
furnished by Landlord and is intended to be that consumed in normal office use
for lighting, computer equipment, computer cooling A/C and office machines.
Landlord will charge for electricity as sub metered as an addition to the
monthly Rent with such charge to be based upon the average cost per unit of
electricity for this Building. If Tenant refuses to pay upon demand of Landlord
any charges set forth in this Section 3.2, such refusal shall constitute a
breach of the obligation to pay Rent under this Lease and shall entitle Landlord
to the rights hereinafter granted for such breach.

          3.3 Water. Water for drinking, lavatory and toilet purposes from the
regular Building supply (at the prevailing temperature) through fixtures
installed by Landlord (or by Tenant with Landlord's prior written consent).

          3.4 Taxes and Insurance. Taxes and insurance on the Premises, except
as otherwise provided herein.

                                       4.

<PAGE>

          3.5 Exterior Maintenance. Landlord agrees to maintain the exterior and
interior of the Building and Property to include snow removal, maintenance of
the structure, roof, mechanical and electrical equipment, architectural finish,
and so on, excluding only those items specifically excepted elsewhere in this
Lease.

          3.6 Closure of Building. Landlord may close the Building at such hours
as Landlord may from time to time reasonably determine; so long as such closure
does not unreasonably interfere with Tenant's conduct of business in the
Premises except in cases of emergency, at which times of closure admittance may
be gained only under such regulations as may from time to time be prescribed by
Landlord (e.g. key card or touch pad access).

          3.7 Elevator Service. Passenger elevator service, shall be provided
for the Building twenty-four (24) hours per day, seven (7) days per week.
Automatic elevator service shall be deemed "elevator services" within the
meaning of this paragraph.

          3.8 Miscellaneous. Lighting replacement, public restroom supplies,
window washing with reasonable frequency, and janitor service to the Premises
during the times and in the manner that such janitor services are customarily
furnished in general Class B office buildings in the area.

     Landlord shall make reasonable efforts to provide the foregoing services,
but in any event, shall not be liable for damages, nor shall the Rent herein
reserved be abated for failure to furnish or any delay in furnishing any of the
foregoing services when there are disturbances or labor disputes of any
character, or by inability to secure electricity, fuel supplies, machinery,
equipment or labor, or by the making of necessary repairs or improvements to
Premises, or unavailability of utilities due to governmental restrictions, nor
shall the temporary failure to furnish any of such services be construed as an
eviction of Tenant or relieve Tenant from the duty of observing and performing
any of the provisions of this Lease.

     4. Improvements to Be Made by Landlord.

          4.1 Landlord shall construct for Tenant, at its sole cost and expense,
the improvements to the Premises as described on the attached Exhibit B-2, and
in the layout, design and quantities therefor shown on Exhibit B-2, attached
hereto, up to a maximum cost of $36,900.00. Landlord and Tenant acknowledge that
under the existing Lease a maximum improvement cost of $21,900 was utilized, and
the balance of $15,000 will used for the increased space of 1,764 rentable
square feet hereunder. Landlord shall not be required to remove or install any
partitions or improvements that are not compatible with the design for the
Building. In the event that the costs of such improvements exceeds such amount
for any reason whatsoever, including, without limitation, changes in the scope
of the work or increased costs for the same work, Tenant shall pay the same as
Additional Rent hereunder promptly upon being invoiced therefor, and failure by
Tenant to pay same in full within thirty (30) days shall constitute failure to
pay Rent when due and an event of default by Tenant hereunder giving rise to all
remedies available to Landlord under this Lease and at law for nonpayment of
Rent.

                                       5.

<PAGE>

     5. Quiet Enjoyment; Landlord Right of Entry.

          5.1 Quiet Enjoyment. So long as Tenant shall observe and perform the
covenants and agreements binding on it hereunder, Tenant shall, at all times
during the Term herein granted, peacefully and quietly have and enjoy possession
of the Premises without any encumbrance or hindrance by, from or through
Landlord.

          5.2 Landlord Right of Entry. Landlord shall have the right, without
charge or diminution of rent, to enter the Premises at all reasonable times,
upon reasonable notice, and in a reasonable manner for the purpose of examining
the Premises and making repairs, alterations or improvements either to the
Premises or to utility lines or other facilities of the Building or to install
such lines or facilities. Tenant shall, upon discovery of any defect in or
injury to the Premises or any need for repairs that are the responsibility of
Landlord, promptly report the same to Landlord in writing, specifying such
defect or injury. Landlord will have the right throughout the term of this Lease
to access and utilize the portions of the Premises identified on the attached
Exhibit A, being the service and utility chase serving the entire Building, at
all reasonable times, upon reasonable notice to Tenant (except in the case of
emergencies in which no notice will be required). Landlord will have the right
of ingress and egress to and from such areas from the elevator on each such
floor.

     6. Certain Rights Reserved to Landlord. Landlord reserves the following
rights:

          6.1 To name or rename the Building and to change the name or street
address of the Building.

          6.2 To install and maintain a sign or signs on the exterior or
interior of the Building.

          6.3 To designate all sources furnishing sign painting and lettering,
towels, toilet supplies, and like services used on the Premises or relating
thereto. Further, to designate all vendors supplying services or materials on or
about the common areas, including without limitation ice, drinking water,
vending machines, shoe shining, mobile vending service, catering services or
other like services.

          6.4 To constantly have pass keys to the Premises and each of the
rooms, closets and other doors therein.

          6.5 On reasonable prior notice to Tenant (which shall not be
unreasonably withheld), to exhibit the Premises to (i) any prospective tenants
during the last Six (6) months of the Term, and to (ii) any prospective
purchaser, mortgagee, or assignee of any mortgage on the Property and to others
having a legitimate interest at any time during the Term.

          6.6 At any time in the event of an emergency, and otherwise at
reasonable times, to take any and all measures, including inspections, repairs,
alterations, additions and improvements to the Premises or to the Building, as
may be necessary or desirable for the safety, protection or preservation of the
Premises or the Building or Landlord's interests, or as may be necessary or
desirable in the operation or improvement of the Building or in order to comply
with all laws, orders and requirements of any governmental or other authority.
There shall be no

                                       6.

<PAGE>

allowance to Tenant or diminution of rent and no liability on the part of
Landlord by reason of inconvenience, annoyance or injury to or loss of business
arising from the reasonable making of any repairs, alterations, improvements or
installations in or to any portion of the Building, the Premises or the common
areas, or in and to the fixtures, appurtenances and equipment thereof.

     7. Estoppel Certificates. Tenant shall, within ten (10) days after written
request of Landlord, execute, acknowledge, and deliver to Landlord or to
Landlord's mortgagee, proposed mortgagee, land lessor or proposed purchaser of
the Property or any part thereof, any estoppel certificates requested by
Landlord from time to time, which estoppel certificates shall show, among other
information requested by Landlord, whether the Lease is in full force and effect
and whether any changes may have been made to the original Lease; whether the
Term of the Lease has commenced and full rental is accruing; whether there are
any defaults by Landlord and, if so, the nature of such defaults; whether
possession has been assumed and all improvements to be provided by Landlord have
been completed; and whether Rent has been paid more than thirty (30) days in
advance and that there are no liens, charges, or offsets against rental due or
to become due and that the address shown on such estoppel is accurate.

     8. Indemnification by Tenant. Tenant agrees that Landlord, its agents and
employees, shall not be liable for any damage or liability of any kind or for
any injury to or death of persons or damage to property of Tenant or any other
person from any cause whatsoever by reason of the construction, use, occupancy
or enjoyment of the Premises by Tenant or any person therein or holding under
Tenant. Tenant agrees to indemnify, defend and save harmless Landlord, its
agents and employees from all claims, actions, demands, damages, costs and
expenses and liabilities whatsoever, including reasonable attorneys' fees, on
account of any such real or claimed damage or liability, and from all liens,
claims and demands occurring in or at the Premises, or arising out of the
construction, use, occupancy or enjoyment of the Premises and its facilities, or
any repairs or alterations which Tenant may make upon the Premises, or
occasioned in whole or in part by any act or omission of Tenant, its agents,
contractors, servants, employees or invitees. Tenant shall not, however, be
liable for damage or injury occasioned by the gross negligence or willful acts
of Landlord or its agents, contractors, servants or employees unless such damage
or injury arises from perils against which Tenant is required by this Lease to
insure.

     9. Insurance/Release/Waiver of Subrogation.

          9.1 Tenant agrees that from and after the date of delivery of the
Premises from Landlord to Tenant and continuing throughout the Term of this
Lease, Tenant shall carry and maintain, at its sole cost and expense, the
following types of insurance, in the amounts specified and in the form
hereinafter provided for:

               9.1.1 Commercial Liability. Commercial General Liability
insurance covering the Premises and tenant's use thereof against claims for
personal injury or death and property damage occurring upon, in or about the
Premises. Such insurance shall have limits of not less than $ 1,000,000.00
Combined Single Limit for any one occurrence and shall contain a per location
aggregate endorsement. This insurance coverage shall also extend to any
liability of the Tenant arising out of the indemnities provided in Section 8
hereof. The insurance coverage required under this Section 9.1.1 shall, in
addition, extend to any liability of Tenant arising out of the indemnities
provided in Article 8 hereof.

                                       7.

<PAGE>

               9.1.2 Trade Fixtures, Personal Property and Business
Interruption. All Risk/Special Property insurance covering Tenant's trade
fixtures, personal property and business interruption in or on the Premises.
Such insurance shall equal at least 90% of the replacement cost of the insured
property. Tenant may elect to obtain earthquake and/or flood coverage as the
Landlord assumes no responsibility for any loss to Tenant's property whatsoever.

     All policies of insurance provided for in this Section 9.1 shall be issued
in form reasonably acceptable to Landlord by insurance companies reasonably
acceptable to Landlord and qualified to do business in Ohio. Each policy
described in Section 9.1.1 above shall be issued in the name of Tenant, and
Landlord shall be named as an additional insured. A certificate of such coverage
shall be delivered to Landlord within fifteen (15) days after delivery of
possession of the Premises to Tenant and thereafter within fifteen (15) days
prior to the expiration of each policy; and shall be written as a primary policy
that does not contribute to and is not in excess of coverage that Landlord may
carry.

          9.2 Subject to reimbursement by Tenant as herein provided, Landlord
shall maintain in effect at all times during the Term of this Lease the
following types of insurance coverage, in the amounts specified and in the form
hereinafter provided for:

               9.2.1 Commercial Liability. Landlord shall at all times during
the Term of this Lease carry and maintain Commercial General Liability Insurance
covering the common areas of the Property against claims for bodily injury or
death and property damage occurring upon, in or on such areas, with a limit of
not less than $1,000,000 Combined Single Limit for any one occurrence with a per
location aggregate.

               9.2.2 Real and Personal Property of Landlord. Landlord shall at
all times during the Term of the Lease maintain in effect insurance covering the
Building (including exterior walls, leasehold improvements, downspouts, gutters
and roof, but excluding all fixtures and property required to be insured by
Tenant pursuant to Section 9.1) in an amount not less than 90% of the functional
value and providing protection on an All Risk/Special Perils basis. Landlord's
insurance cost referred to in this section shall be included in Operating
Expenses referred to in Section 2.3 and Tenant shall reimburse Landlord for a
portion of such insurance costs in accordance with the provisions of said
Section 2.3.

          9.3 All personal property belonging to Tenant or any occupant of the
Premises that is in or on any part of the Property shall be there at the risk of
Tenant or of such other person only, and Landlord, its agents and employees
shall not be liable for any damage thereto or for the theft or misappropriation
thereof. Neither Landlord nor its agents or employees shall be liable for any
damage or loss to fixtures, equipment, merchandise or other personal property of
Tenant located anywhere in or on the Premises. The foregoing waiver of liability
includes, without limitation, those losses caused by theft, fire, water,
explosion, sewer backup or any other insurable hazards, regardless of the origin
or cause thereof, and Tenant does hereby expressly release Landlord, its agents
and employees of and from any and all liability for such damages or loss. Tenant
does hereby expressly release Landlord, and its agents and employees, of and
from any and all liability for loss resulting from business interruption at the
Premises for perils covered by an All Risk/Special policy, and Tenant does
hereby expressly release Landlord, and its agents and employees, of and from any
and all liability for such damage or loss.

                                       8.

<PAGE>

          9.4 Each party hereby waives its rights against the other with respect
to losses insured against or required to be insured against by such party under
this Article 9. The policies required to be carried under this Article 9 shall
provide for waivers of any right of subrogation that the insurer of such party
may require against the other party hereto with respect to any such losses.

     10. Holding Over. Unless otherwise agreed to in writing by Landlord and
Tenant, if Tenant retains possession of the Premises or any part thereof after
the expiration or earlier termination of this Lease, Tenant shall pay Landlord
Rent at 150% of the monthly rate in effect immediately prior to the termination
of the Term for the time Tenant thus remains in possession and, in addition
thereto, Tenant shall pay Landlord for all damages, consequential as well as
direct, sustained by reason of Tenant's retention of possession. The provisions
of this Article 10 do not exclude Landlord's rights of re-entry or any other
right hereunder. No such holding over shall be deemed to constitute a renewal or
extension of the Term hereof and Landlord will retain all rights to re-enter the
Premises from and after the expiration or earlier termination of this Lease.
Further, from and after the date that Landlord has provided written notice to
Tenant that Landlord desires possession of the Premises, effective at any time
on or after the expiration or termination of this Lease (but not earlier than
thirty (30) days following the provision of such notice), to either (i) prepare
the same for the possession thereof by a new tenant or (ii) to provide
possession of the same to a new tenant, Tenant will be liable to Landlord for
all consequential damages suffered by Landlord as a result of Tenant's
continuing occupancy of the Premises, including without limitation damages
arising from increased costs to prepare the Premises (or any part thereof) more
quickly for such new tenant, costs for concessions to such new tenant arising
from delayed occupancy, damages for which Landlord is liable to such new tenant
as a result of Landlord's inability to deliver the Premises as and when required
under any new agreement and any lost rental or other consideration, any tenant
improvements completed or Realtor fees owed, from a lease that is terminated by
a tenant due to the inability of Landlord to deliver the Premises to such new
tenant as provided in a written lease with such tenant for occupancy of the
Premises or any part thereof.

     11. Assignment and Subletting.

          11.1 Tenant shall not, without the express written consent of
Landlord, which consent may be withheld in Landlord's sole discretion:

               11.1.1 assign, convey, mortgage, pledge, encumber or otherwise
transfer (whether voluntarily or otherwise) this Lease or any interest under it;

               11.1.2 allow any transfer of this Lease by operation of law;

               11.1.3 sublet the Premises or any part thereof; or

               11.1.4 permit the use or occupancy of the Premises or any part
thereof by anyone other than Tenant.

          11.2 Landlord shall have the option, upon receipt of Tenant's written
request for Landlord's consent to any assignment or subletting, in addition to
denying such request, to cancel this Lease as to the portion of the Premises
proposed to be assigned or sublet. This option

                                       9.

<PAGE>

shall be exercised if at all, within thirty (30) days following Landlord's
receipt of Tenant's written request, by delivery to Tenant of Landlord's
intention to exercise the option.

          11.3 If this Lease be assigned or if the Premises or any part thereof
be sublet or occupied by anybody other than Tenant, Landlord may, after default
by Tenant, collect Rent from the assignee, subtenant or occupant, and apply the
net amount collected to the Rent herein reserved, but no such assignment,
subletting, occupancy or collection shall be deemed a waiver of any of Tenant's
covenants contained in this Lease or the acceptance of such assignee, subtenant
or occupant as Tenant, or a release of Tenant from further performance by Tenant
of covenants on the part of Tenant herein contained.

          11.4 In the event a sublease or assignment is made, with Landlord's
prior written consent, as herein provided, Tenant shall pay Landlord a charge of
THREE HUNDRED FIFTY AND NO/100 DOLLARS ($350.00) as reimbursement for necessary
legal and accounting services required by Landlord to accomplish such assignment
or subletting. Said amount shall be deemed to be additional Rent under the terms
of this Lease.

          11.5 In the event Tenant sublets all or a portion of the Premises or
assigns the Lease for an amount in excess of the Base Rent set forth in Section
2.1, of this Lease, then Tenant shall pay to Landlord, as additional Rent, fifty
percent (50%) of such excess received by Tenant.

          11.6 In addition, and notwithstanding anything to the contrary
contained in this Section 11, if assignment or subletting is allowed, no such
assignment of this Lease or subletting of the Premises shall be deemed to
release Tenant from any of its obligations under this Lease, nor shall any
assignment or subletting be construed as permitting any further assignment or
subletting except in accordance with this Section 11.

     12. Condition of Premises. Except as otherwise agreed to in writing,
Tenant's taking possession of the Premises shall be conclusive evidence as
against Tenant that the Premises were in good order and satisfactory condition
when Tenant took possession, except as to latent defects. Tenant accepts the
Premises in their present "AS IS/WHERE IS/WITH ALL DEFECTS" condition. No
promise of Landlord to alter, remodel, repair or improve the Premises or the
Building (except as set forth in Article 4, above) and no representation
respecting the condition of the Premises, Building, or areas in the vicinity of
the same have been made by Landlord or any representative of Landlord to Tenant
or any representative of Tenant, other than as may be contained herein or in a
separate agreement signed by Landlord and Tenant. At the termination of this
Lease, Tenant shall return the Premises broom-clean and in as good condition as
when Tenant took possession, ordinary wear and tear and loss by fire or other
casualty excepted, failing which Landlord may restore the Premises to such
condition and Tenant shall pay the cost thereof on demand.

     13. Use of Premises; Alterations; Signs; Governmental Regulations.

          13.1 Tenant may not use the Premises or permit the use of the Premises
for any purpose whatsoever at any time except for general office purposes.

                                      10.

<PAGE>

          13.2 Tenant, its employees and agents shall perform and abide by the
Rules & Regulations, attached hereto as Exhibit C. Landlord may from time to
time throughout the Term make reasonable amendments and additions to the Rules &
Regulations and Tenant is required to abide by the same.

          13.3 Tenant shall not make any alterations, improvements or additions
to the Premises without Landlord's advance written consent in each and every
instance. In the event Tenant desires to make any alterations, improvements or
additions, Tenant shall first submit to Landlord plans and specifications
therefor and obtain Landlord's written approval thereof prior to commencing any
such work. Landlord's consent to such work or Landlord's approval of such plans
and specifications shall create no responsibility or liability on the part of
Landlord for their completeness, design sufficiency, or compliance with all
laws, rules and regulations or governmental authorities of which may hereafter
be in effect. All alterations, improvements or additions whether temporary or
permanent in character, made by Landlord or Tenant in or upon the Premises shall
become Landlord's property and shall remain upon the Premises at the termination
of this Lease without compensation to Tenant (excepting only Tenant's movable
office furniture, trade fixtures, office and professional equipment). Any damage
caused by or resulting from the removal of Tenant's office furniture, trade
fixtures, and office and professional equipment may be repaired by Landlord at
Tenant's cost and expense. Any alterations that involve (i) structural
alterations or (ii) penetrations to the roof or other elements of the exterior
shell of the Building may be done only under the supervision of a representative
of Landlord. With respect to any alterations that are performed on the Premises
by Tenant, Tenant will (i) obtain all required building permits and other
permits, (ii) perform such alterations in conformity with all applicable
governmental laws, ordinances, codes, rules and regulations, including without
limitation building and fire regulations and the Americans with Disabilities
Act, and (iii) Tenant shall be responsible for promptly paying all contractors,
subcontractors, material men and laborers coming onto the Premises and shall
cause to be released within five (5) days of notice from Landlord any mechanics
lien placed on the Premises as a result of Tenant's work or alleged to be as a
result of Tenant's work.

          13.4 Without Landlord's written consent, Tenant shall have no right
under this Lease to put any improvements on the exterior of the Property,
including the roof or exterior walls.

          13.5 No signs, advertisements or notices of any kind shall be
inscribed, painted or affixed upon, or be projected from any part of the
Premises or building except of the directory board in the main lobby and on the
entrance to the Premises and then only in such manner as may be designated by
Landlord.

          13.6 Tenant shall comply at its cost and expense with all laws, orders
and regulations of federal, state, county and municipal authorities relating to
Tenant's specific use of the Premises, and with any direction or recommendation
of any public officer or officers relating to Tenant's specific use of the
Premises, pursuant to law, or any reasonable request of any insurance company
carrying insurance on the Premises, and shall bear all costs of any kind and
nature whatsoever occasioned by or necessary for compliance with the same.
Except as relates to the Tenant's specific use of the Premises as described in
the previous sentence, Landlord shall comply at its cost and expense with all
laws, orders and regulations of federal, state, county and

                                      11.

<PAGE>

municipal authorities relating to the Building and the Property (including, but
not limited to, those laws, orders and regulations which are generally
applicable to the Building and Property including the Premises), and with any
direction or recommendation of any public officer or officers relating to the
Building and the Property, pursuant to law, or any reasonable request of any
insurance company carrying insurance on the Building or Property, and shall bear
all costs of any kind and nature whatsoever occasioned by or necessary for
compliance with the same.

          13.7 Tenant may not undertake any act, or permit any act to be
undertaken in the Premises that violates any private easement, covenants,
conditions, or restrictions that applies to the Premises or the Building as of
the date of this Lease.

          13.8 Tenant shall be responsible for all compliance with the Americans
with Disabilities Act as it relates to the Premises and Tenant hereby agrees to
indemnify, defend, and hold harmless Landlord from and against any and all fees,
fines, damages, costs, expenses, and/or liabilities including but not limited to
attorneys' fees resulting directly or indirectly from breach of same.

     14. Repairs. Tenant shall give to Landlord prompt written notice of any
damage to, or defective condition in any part or appurtenance of the Building's
plumbing, electrical, heating, air conditioning or other systems serving,
located in, or passing through the Premises. Tenant shall, at Tenant's own
expense, keep the Premises in good order, condition and repair during the Term,
and Tenant, at Tenant's expense, shall comply with all laws and ordinances, and
all rules and regulations of all governmental authorities and of all insurance
bodies at any time in force, applicable to the Premises or to Tenant's use
thereof, except that Tenant shall not hereby be under any obligation to comply
with any law, ordinance, rule or regulation requiring any structural alteration
of or in connection with the Premises, unless such alteration is required by
reason of condition which has been created by, or at the instance of Tenant, or
is required by reason of a breach of any of Tenant's covenants and agreements
hereunder. Landlord shall not be required to repair any injury or damage by fire
or other cause, or to make any repairs or replacements of any panels,
decoration, office fixtures, railing, ceiling, floor covering, partitions, or
any other property installed in the Premises by Tenant.

     15. Untenantability. If the Premises are made untenantable in whole or in
part by fire or other casualty, the Rent, until repairs shall be made or the
Lease terminated as hereinafter provided, shall be apportioned on a per diem
basis according to the part of the Premises which is usable by Tenant, if, but
only if, such fire or other casualty be not caused by the fault or negligence of
Tenant, its contractors, agents, or employees. If such damage shall be so
extensive that the Premises cannot be restored by Landlord within a period of
six (6) months, either party shall have the right to cancel this Lease by notice
to the other given at any time within thirty (30) days after the date of such
damage; except that if such fire or casualty resulted from Tenant's fault or
negligence, Tenant shall have no right to cancel. In the event of giving
effective notice pursuant to this Article 15, this Lease and the Term and the
estate hereby granted shall expire on the fifteenth (15th) day after the giving
of such notice as fully and completely as if such date were the date
hereinbefore set for the expiration of the Term of this Lease. If this Lease is
not so terminated, Landlord will promptly repair the damage at Landlord's
expense to a condition substantially similar to that existing prior to such
damage.

                                      12.

<PAGE>

     16. Eminent Domain.

          16.1 In the event that title to the whole or any part of the Premises
shall be lawfully condemned or taken in any manner for any public or
quasi-public use, this Lease and the Term and estate hereby granted shall
forthwith cease and terminate as of the date of vesting of title and Landlord
shall be entitled to receive the entire award, Tenant hereby assigning to
Landlord Tenant's interest therein, if any. However, nothing herein shall be
deemed to give Landlord any interest in or to require Tenant to assign to
Landlord any award made to Tenant for the taking of personal property or
fixtures belonging to Tenant or for the interruption of or damage to Tenant's
business or for Tenant's moving expenses.

          16.2 In the event that title to a part of the Building other than the
Premises shall be so condemned or taken and if in the opinion of Landlord, the
Building should be restored in such a way as to alter the Premises materially,
Landlord may terminate this Lease and the Term and estate hereby granted by
notifying Tenant of such termination within sixty (60) days following the date
of vesting of title, and this Lease and the Term and estate hereby granted shall
expire on the date specified in the notice of termination, not less than sixty
(60) days after the giving of such notice, as fully and completely as if such
date were the date hereinbefore set for the expiration of the Term of this
Lease, and the Rent hereunder shall be apportioned as of such date.

          16.3 For the purpose of this Section 16, a sale to a public or
quasi-public authority under threat of condemnation shall constitute a vesting
of title and shall be construed as a taking by such condemning authority.

     17. Default.

          17.1 Tenant's Defaults.

               17.1.1 The following occurrences will be deemed to be a breach by
Tenant of its obligations under this Lease:

               17.1.1.1 If Tenant does not deliver any payment of Rent to
Landlord within ten (10) days after such payment is due, time being of the
essence of this provision. In the event of non-payment of Rent, no notice to
Tenant is required before such non-payment is considered a default.

               17.1.1.2 If Tenant defaults in the prompt and full performance of
any other provision of this Lease (but for the payment of Rent as provided
above) and such default continues for thirty (30) days following written notice
from Landlord to Tenant;

               17.1.1.3 If the leasehold interest of Tenant is levied upon under
execution or is attached by process of law; or

               17.1.1.4 If Tenant shall (i) apply for or consent to the
appointment of a receiver, trustee or liquidator of Tenant or of all or a
substantial part of its assets, (ii) file a voluntary petition in bankruptcy or
admit in writing its inability to pay its debts as they come due, (iii) make a
general assignment for the benefit of creditors, (iv) file a petition

                                      13.

<PAGE>

or an answer seeking reorganization or arrangement with creditors or to take
advantage of any insolvency law, or (v) file answer admitting the material
allegations of a petition filed against Tenant in any bankruptcy, reorganization
or insolvency proceeding, or if an order, judgment or decree shall be entered by
any court of competent jurisdiction adjudicating Tenant a bankrupt or insolvent
or approving a petition seeking reorganization of Tenant or appointing a
receiver, trustee or liquidator of Tenant.

               17.1.2 Upon the occurrence of any such event, Landlord may, at
its election take any one or more of the following actions, (i) accelerate all
amounts that may be due and payable by Tenant over the remaining life of the
Lease and declare such sum immediately to be due and payable in full, (ii)
terminate the Lease and Tenant's right to possession of the Premises, (iii)
without terminating the Lease, endeavor to re-let the Premises, and/or (iv) take
any other action reasonably calculated to resolve the deficiency under the
Lease, any such action being entirely for the account and at the cost of Tenant.
No action by Landlord under this Article 17 shall relieve Tenant of any
obligation, including payment of Rent under this Lease.

               17.1.3 Upon any termination of this Lease, Tenant shall surrender
possession and vacate the Premises immediately, and deliver possession thereof
to Landlord, and hereby grants to Landlord full and free license to enter into
and upon the Premises in such event with or without process of law and to
repossess Landlord of the Premises as of Landlord's former estate and to expel
or remove Tenant and any others who may be occupying or within the Premises and
to remove any and all property therefrom, using such force as may be necessary,
without being deemed in any manner guilty of trespass, eviction or forcible
entry and detainer, and without relinquishing Landlord's right to Rent or any
other right given to Landlord hereunder or by operation of law.

               17.1.4 If Landlord elects, without terminating the Lease, to
endeavor to re-let the Premises, Landlord may, at Landlord's option, enter into
the Premises, remove Tenant's signs and other evidence of tenancy, and take and
hold possession thereof as provided in Section 17.1.3, without such entry and
possession terminating the Lease or releasing Tenant, in whole or in part, from
Tenant's obligation to pay the Rent hereunder for the full Term as hereinafter
provided. Upon and after entry into possession without terminating of the Lease,
Landlord may re-let the Premises or any part thereof for the account of Tenant
to any person, firm or corporation other than Tenant for such Rent, for such
time and upon such terms, as Landlord shall determine, to be reasonable. In any
such case, Landlord may make repairs, alterations and additions in or to the
Premises, and redecorate the same to the extent deemed by the Landlord necessary
or desirable, and Tenant shall, upon demand, pay the cost thereof, together with
Landlord's expenses of the re-letting. If the consideration collected by
Landlord upon any such re-letting for Tenant's account is not sufficient to pay
monthly the full amount of the Rent reserved in this Lease, together with the
cost of repairs, alterations, additions, redecorating and Landlord's expenses,
Tenant shall pay to Landlord the amount of each monthly deficiency upon demand;
and if the consideration so collected from any such re-letting is more than
sufficient to pay the full amount of the Rent reserved herein, together with the
costs and expenses of Landlord, Landlord, at the end of the stated Term of this
Lease, shall account to Tenant.

                                      14.

<PAGE>

               17.1.5 If Landlord elects to terminate this Lease in any of the
circumstances specified in Section 17.1, Landlord shall forthwith upon such
termination be entitled to recover as damages, and not as a penalty, an amount
equal to the then present value of the Rent applying a discount rate of eight
percent (8.0%) and additional Rent provided in this Lease for the residue of the
stated Term hereof plus the unamortized portion of the rental commission related
to the lease for which Landlord is liable or Landlord has already paid and the
unamortized portion of any costs of tenant improvement work done by Landlord
related to the Lease or Tenant's tenancy; PROVIDED, HOWEVER, that these two
items shall not be subject to any discount, but shall be due and promptly
payable at the time of termination.

               17.1.6 Any and all property which may be removed from the
Premises by Landlord pursuant to the authority of the Lease or of law, to which
Tenant is or may be entitled, may be handled, removed or stored by Landlord at
the risk, cost and expense of Tenant and Landlord shall in no event be
responsible for the value, preservation or safekeeping thereof. Tenant shall pay
to Landlord, upon demand, any and all expenses incurred in such removal and all
storage charges against such property so long as the same shall be in Landlord's
possession or under Landlord's control. Any such property of Tenant not removed
from the Premises or retaken from storage by Tenant within thirty (30) days
after the end of the Term or of Tenant's right to possession of the Premises,
however terminated, shall be conclusively deemed to have been forever abandoned
by Tenant and either may be retained by Landlord as its property or may be
disposed of in such manner as Landlord may see fit.

               17.1.7 Tenant agrees that if it shall at any time fail to make
any payment or perform any other act on its part to be made or performed under
this Lease, Landlord may, but shall not be obligated to, and after reasonable
notice or demand and without waiving, or releasing Tenant from any obligation
under this Lease, make such payment or perform such other act to the extent
Landlord may deem desirable, and in connection therewith to pay expenses and
employ counsel. Tenant agrees to pay reasonable attorney's fee if legal action
is required to enforce performance by Tenant of any condition, obligation or
requirement hereunder. All sums so paid by Landlord and all expenses in
connection therewith, together with interest thereon at the rate of ten percent
(10%) per annum from the date of payment, shall be deemed additional Rent
hereunder and payable at the time of any installment of Rent thereafter becoming
due and Landlord shall have the same rights and remedies for the non-payment
thereof, or of any other additional Rent, as in the case of default of payment
of Rent.

               17.1.8 All rights and remedies of Landlord herein enumerated in
this Section 17.1 shall be cumulative, and none shall exclude any other right or
remedy allowed by law. In addition to the other remedies in this Lease provided,
Landlord shall be entitled to the restraint by injunction of the violation or
attempted violation of any of the covenants, agreements or conditions of this
Lease.

          17.2 Landlord's Defaults. Landlord shall be in default of this Lease
if Landlord fails to perform any duty or obligation imposed upon it by this
Lease and the default continues for a period of thirty (30) days after written
notice is given to Landlord by Tenant, or for an unreasonable period of time if
thirty (30) days is not sufficient time to repair, remedy or correct such
default. Landlord agrees that if it shall at any time fail to perform any of the
obligations of it as required in Section 3 of this Lease for a period of thirty
(30) days following written notice

                                      15.

<PAGE>

from Tenant of the failure to provide such service (or in the event a cure of
the specified default reasonably takes longer than thirty (30) days to cure,
then for such longer period as is reasonably necessary to effectuate such cure),
then Tenant may, but shall not be obligated to, without waiving, or releasing
Landlord from any obligation under this Lease, make such payment or perform such
other act to the extent Tenant reasonably may deem desirable. All sums so paid
by Tenant and all expenses in connection therewith, together with interest
thereon at the rate of ten percent (10%) per annum from the date of payment
shall be paid from Landlord to Tenant within thirty (30) days from Tenant
invoicing Landlord for the same. In the alternative, at Landlord's option,
Landlord may provide to Tenant a credit against other sums owing under this
Lease by a writing from Landlord to Tenant providing the same. Notwithstanding
anything contained in this Lease, Tenant will not have the right to offset
amounts Tenant claims are owing to it from the amount of rent owed from Tenant
to Landlord hereunder or in any other manner arising from Landlord's alleged
default under this Lease.

     18. Security Deposit. Upon the execution of this Lease, Tenant has
deposited with Landlord the full sum of SEVEN THOUSAND NINETY-TWO AND NO/100
DOLLARS ($7,092.00) ("Security Deposit") as security for the full and faithful
performance of every provision of this Lease to be performed by Tenant, which
Security Deposit was paid under the existing Lease and hereby acknowledged by
Landlord. If Tenant defaults in the performance of any provision of this Lease,
including but not limited to the provisions relating to the payment of Rent,
Landlord may use, apply or retain all or any part of this Security Deposit for
the payment of any Rent or any other sum in default or for the payment of any
other amount which Landlord may spend or become obligated to spend by reason of
Tenant's default or to compensate Landlord for any other loss, cost or damage
which Landlord may suffer by reason of Tenant's default. If any portion of the
Security Deposit is so used or applied, Tenant shall, within five (5) days after
written demand therefor, deposit cash with Landlord in an amount sufficient to
restore the Security Deposit to its original amount and Tenant's failure to do
so shall be a breach of this Lease. Landlord shall not, unless otherwise
required by law, be required to keep this Security Deposit separate from its
general funds, nor pay interest to Tenant. If Landlord is required to maintain
the Security Deposit in an interest bearing account, Landlord will retain the
maximum amount permitted under applicable law as a bookkeeping and
administrative charge. If Tenant shall fully and faithfully perform every
provision of this Lease to be performed by it, the Security Deposit or any
balance thereof shall be returned to Tenant (or, at Landlord's option, to the
last transferee of Tenant's interest hereunder) at the expiration of the Lease
Term and upon Tenant's vacation of the Premises. Landlord shall have the right
to transfer any Security Deposit held to any purchaser of the Building. Upon
such transfer, Tenant shall look solely to such purchaser for return of the
Security Deposit; and Landlord shall be released from any liability with respect
to the Security Deposit.

     19. Miscellaneous.

          19.1 Subordination of Lease. This Lease is and shall be subject and
subordinate to any and all mortgages or deeds of trust now existing upon or that
may be hereafter placed upon the Premises and the Property and to all advances
made or to be made thereon and all renewals, modifications, consolidations,
replacements or extensions thereof and the lien of any such mortgages or deeds
of trust shall be superior to all rights hereby or hereunder vested in Tenant,
to the full extent of all sums secured thereby; unless such mortgages or deeds
of trust

                                      16.

<PAGE>

expressly provide or elect that this Lease shall be superior to such mortgages
or deeds of trust. If any such mortgages or deeds of trust are foreclosed, upon
request of the mortgagee or holder, as the case may be, Tenant will attorn to
the purchaser at the foreclosure sale. This provision shall be self-operative
and no further instrument of subordination shall be necessary to effectuate such
subordination and the recording of any such mortgage or deed of trust shall have
preference and precedence and be superior and prior in lien to this Lease,
irrespective of the date of recording. In confirmation of such subordination,
Tenant shall at the request of Landlord or the holder of any such mortgage or
deed of trust execute and deliver to Landlord within ten (10) days any
instrument that Landlord or such holder may reasonably request.

          19.2 Lease Binding upon Assignees. This Lease and all covenants,
provisions and conditions herein contained shall inure to the benefit of and be
binding upon the heirs, executors, administrators, personal representatives,
successors and assigns, respectively of the parties hereto, provided, however,
that no sublease, assignment or transfer by, from, through or under Tenant in
violation of the provisions hereof shall vest in the sublessee, assignee or
transferee any right, title or interest whatsoever.

          19.3 Commencement of Possession. If Landlord shall be unable to give
possession of the Premises on the Commencement Date of the Term hereof because
the Premises shall not be ready for occupancy, Landlord shall not be subject to
any liability for the failure to give possession on said date. Under such
circumstances, unless the delay is the fault of Tenant, the Rent shall not
commence until the Premises are ready for occupancy by Tenant, and in such
event, the beginning and termination dates of the Term hereof shall be adjusted
accordingly, which adjustment will be evidenced by an agreement signed by
Landlord and Tenant setting forth the adjusted beginning and termination dates.
If at Tenant's request Landlord shall make the Premises available to Tenant
prior to the Commencement Date of the Term for the purpose of decorating,
furnishing and equipping the Premises, the use of the Premises for such work
shall not create a Landlord-Tenant relationship between the parties, nor
constitute occupancy of the Premises within the meaning of the next sentence,
but the provisions of Section 9 of this Lease shall apply. If, with the consent
of Landlord, Tenant shall enter into occupancy of the Premises to do business
therein prior to the Commencement Date of the Term, all provisions of this
Lease, including but not limited to the date for expiration of the Term hereof,
shall apply and the Rent shall accrue and be payable at the first rate specified
in Section 2.1 from the date of occupancy.

          19.4 Force Majeure. In the event Landlord shall be delayed or hindered
in or prevented from the performance of any obligation required under this Lease
by reason of strikes, lockouts, inability to procure labor or materials, failure
of power, fire or other casualty, acts of God, restrictive governmental laws or
regulations, riots, insurrection, terrorism, war or any other reason not within
the reasonable control of Landlord, then the performance of such obligation
shall be excused for a period of such delay, and the period for the performance
of any such act shall be extended for a period equivalent to the period of such
delay. Notwithstanding the foregoing, Tenant will not be excused in the timely
payment of Rent or any other charges under this Lease as a result of such force
majeure events.

          19.5 Notices and Consents. All notices, demands, requests, consents or
approvals which may or are required to be given by either party to the other
shall be in writing, and shall be given by personal delivery or by telegram or
by nationally recognized overnight

                                      17.

<PAGE>

delivery service or by United States certified or registered mail, postage
prepaid. Any such notice shall be deemed given as of the date personally
delivered to the other party, or as of the date such telegram is delivered to
the other party, or the day after such notice is sent by nationally recognized
overnight delivery service, or three (3) days after such notice is sent United
States certified or registered mail, as the case may be.

     Notices to Tenant shall be addressed as follows:

               Grad Partners, Inc.
               12760 High Bluff Drive, Suite 210
               San Diego, CA 92130
               Attention:        Douglas L. Feist
                                 Executive Vice President and General Counsel

     Notices to Landlord shall be addressed as follows:

               Ingalls Building Co. Ltd.
               6 East Fourth Street, Suite 1200
               Cincinnati, Ohio 45202

     Either party may change any of the foregoing addresses from time to time by
providing written notice of such change to the other party. All consents and
approvals provided for herein must be in writing and sent as provided above to
be valid. If the term "Tenant", as used in this Lease, refers to more than one
(1) person, notice given as aforesaid to any one (1) or more of such persons
shall be deemed to have been duly given to Tenant and such consent or approval
given by any one (1) or more of such persons shall be binding upon all.

          19.6 Entire Agreement, Enforceability; Amendments. This Lease and any
Exhibits attached hereto constitute the entire agreement between the parties
relating to the subject matter hereof, and there exists no other oral or written
understandings, agreements, representations or assurances with respect to the
matters set forth herein. Unless expressly stated herein, this Lease confers no
rights upon any person or business entity that is not a party hereto. If any
provision herein contained shall be held to be illegal or unenforceable, such
holding shall not affect the validity or enforceability of the other provisions
of this Lease. No agreement to amend or modify any provision of this Lease will
be deemed to be effective unless such agreement is in writing and signed by each
of the parties to this Lease.

          19.7 No Estate in Land. This contract and Lease shall create the
relationship of landlord and tenant between Landlord and Tenant; no estate shall
pass out of Landlord; and Tenant has only a usufruct which is not subject to
levy and sale.

          19.8 Invalidity of Particular Provisions. If any clause or provision
of this Lease is or becomes illegal, invalid, or unenforceable because of
present or future laws or any rule, decision, or regulation of any governmental
body or entity, the intention of the parties hereto is that the remainder of
this Lease shall not be affected thereby.

                                      18.

<PAGE>

          19.9 Miscellaneous Taxes. Tenant shall pay prior to delinquency all
taxes assessed against or levied upon its occupancy of the Premises, or upon the
fixtures, furnishings, equipment and all other personal property of Tenant
located in the Premises, if nonpayment thereof shall give rise to a lien on the
real estate, and when possible Tenant shall cause said fixtures, furnishings,
equipment and other personal property to be assessed and billed separately from
the property of Landlord. In the event any or all of Tenant's fixtures,
furnishings, equipment and other personal property, or upon Tenant's occupancy
of the Premises, shall be assessed and taxed with the property of Landlord,
Tenant shall pay to Landlord its share of such taxes within ten (10) days after
delivery to Tenant by Landlord of a statement in writing setting forth the
amount of such taxes applicable to Tenant's fixtures, furnishings, equipment or
personal property.

          19.10 Substitute Premises. If the Premises contain an area of five
thousand (5,000) square feet or less, Landlord shall have the right at any time
during the Term hereof, upon giving Tenant not less than sixty (60) days prior
written notice, to provide and furnish Tenant with space elsewhere in the
Building of approximately the same size as the Premises and remove and place
Tenant in such space, with Landlord to pay all reasonable direct costs and
expenses incurred as a result of such removal of Tenant, but not any indirect or
special expenses resulting from such relocation, including but not limited to
Tenant's loss of business or loss of profits. Should Tenant refuse to permit
Landlord to move Tenant to such new space at the end of said sixty (60) day
period, Landlord shall have the right to cancel and terminate this Lease
effective ninety (90) days from the date of original notification by Landlord.
If Landlord moves Tenant to such new space, this Lease and each and all of its
terms, covenants and conditions shall remain in full force and effect and be
deemed applicable to such new space, and such new space shall thereafter be
deemed to be the Premises as though Landlord and Tenant had entered into an
express written amendment of this Lease with respect thereto.

          19.11 Brokerage. Tenant represents and warrants that it has dealt with
no broker, agent or other person in connection with this transaction and that no
broker, agent, or other person brought about by this transaction, other than
[None] and Tenant agrees to indemnify and hold Landlord harmless from and
against any claims by any other broker, agent or other person claiming a
commission or other form of compensation by virtue of having dealt with Tenant
with regard to this leasing transaction. The provisions of this Section 19.11
shall survive the termination of this Lease.

          19.12 Interest on Past-Due Obligations. Other remedies for default in
this Lease notwithstanding, any sum accruing to Landlord or Tenant under the
terms and provisions of this Lease which is not paid when due shall bear
interest at the rate of one-and-one-half percent (1 1/2%) per month, but in no
event more than the maximum amount allowed by law, from the date when any such
sum becomes due and payable under the terms and provisions of this Lease until
paid. In addition, and not by way of limitation to the preceding sentence, if
any Base Rent and/or additional Rent payment is not received by Landlord on or
before the fifth day of the month for which such payment is due, a service
charge of five percent (5%) of such past-due amount shall become due and payable
in addition to such amounts owed under this Lease.

          19.13 Alternate Electrical Provider. Because electricity to the
Premises is supplied to the Premises through common facilities with the
remainder of the Building, Tenant

                                      19.

<PAGE>

will not be able to utilize an alternative electricity provider; however,
Landlord may in its sole judgement, utilize an alternative electricity provider
if it so chooses.

          19.14 Special Stipulations.

               19.14.1 No receipt of money by Landlord from Tenant after the
termination of this Lease or after the service of any notice or after the
commencement of any suit, or after final judgment for possession of the Premises
shall reinstate, continue or extend the Term of this Lease or affect any such
notice, demand or suit or imply consent for any action for which Landlord's
consent is required.

               19.14.2 No waiver of any default of Tenant hereunder shall be
implied from any omission by Landlord to take any action on account of such
default if such default persists or be repeated, and no express waiver shall
affect any default other than the default specified in the express waiver and
that only for the time and to the extent therein stated.

               19.14.3 It is understood that Landlord may occupy portions of the
Building in the conduct of Landlord's business. In such event, all references
herein to other tenants of the Building shall be deemed to include Landlord as
an occupant.

               19.14.4 The term "City" as used in this Lease shall be understood
to mean the City and/or County in which the Property is located.

               19.14.5 All of the covenants of Tenant hereunder shall be deemed
and construed to be "conditions" as well as "covenants" as though the words
specifically expressing or importing covenants and conditions were used in each
separate instance.

               19.14.6 This Lease shall not be recorded by either party without
the consent of the other.

               19.14.7 Neither party has made any representations or promises,
except as contained herein or in some further writing signed by the party making
such representation or promise.

               19.14.8 In the absence of fraud, no person, firm or corporation,
or the heirs, legal representatives, successors and assigns, respectively,
thereof, executing this Lease as agent, trustee or in any other representative
capacity shall ever be deemed or held individually liable hereunder for any
reason or cause whatsoever.

               19.14.9 In the event of variation or discrepancy, Landlord's
original copy of the Lease shall control.

               19.14.10 Each provision hereof shall extend to and shall, as the
case may require, bind and inure to the benefit of Landlord and Tenant and their
respective heirs, legal representatives, successors and assigns. This Lease
shall be interpreted under and governed by the laws of the State of Ohio.

                                      20.

<PAGE>

               19.14.11 If because of any act or omission of Tenant, its
employees, agents, contractors, or subcontractors, any mechanic's lien or other
lien, charge or order for the payment of money shall be filed against Landlord,
or against all or any portion of the Premises, or the Building of which the
Premises are a part, Tenant shall, at its own cost and expense, cause the same
to be discharged of record, within thirty (30) days after the filing thereof,
and Tenant shall indemnify and save harmless Landlord against and from all
costs, liabilities, suits, penalties, claims and demands, including reasonable
attorney's fees resulting therefrom.

               19.14.12

               19.14.12.1 Tenant will not make or permit the generation,
treatment, storage, release or disposal of any Hazardous Substance or Hazardous
Waste (as hereinafter defined) on or under the Premises and/or the Building. The
term "Hazardous Substance" or "Hazardous Waste" includes, without limitation,
those substances included within the definitions of hazardous substances,
hazardous materials, toxic substances or solid waste in the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 ("CERCLA") as
amended, 42 U.S.C. Section 9601 et seq., the Resource Conservation and Recovery
Act ("RCRA"), 42 U.S.C. Section 6901 et seq. and the Superfund Amendments and
Reauthorization Act of 1986 ("SARA") as codified at 42 U.S.C. Section 9671 et
seq., and the Hazardous Materials Transportation Act, 49 U.S.C. Sections 1801 et
seq., and in the regulations promulgated pursuant to said laws.

               19.14.12.2 Tenant shall provide immediate notice to Landlord in
the event that, contrary to the covenant of Tenant contained in subsection
19.14.12.1 (m) (i) above, any Hazardous Substance or Hazardous Waste is
generated, treated, stored, released or disposed of in Premises by Tenant, it's
agents, employees, invitees or guests, or, Tenant has knowledge of any such
event in any other part of the Premises or Building.

               19.14.12.3 Tenant releases, indemnifies and holds Landlord
harmless from and against all actual or threatened claims, costs (including but
not limited to the cost of investigation, removal, remediation and other clean
up of Hazardous Substances and Hazardous Wastes, and reasonable fees of
attorneys and other professionals experts and consultants retained by Landlord),
demands, orders, losses, lawsuits, liabilities, damages (including without
limitation all consequential damages) and expenses whether brought collectively
or individually by a governmental authority or any third part arising from or
related to any of the following. This indemnity shall survive the termination of
this Lease and the vacation of the Premises by Tenant and the sale of the
Premises by Landlord.

                    (A) The past, present or future release, threatened
releases, storage, treatment, accumulation, generation, utilization, disposal,
transportation or other handling or migration of any Hazardous Substance or
Hazardous Waste on, in onto, or from the Premises.

                    (B) The violation or alleged violation of environmental laws
occurring on or related to the Premises.

                                      21.

<PAGE>

                    (C) Any action taken by Landlord to eliminate, prevent, or
mitigate the potential adverse impact on the Premises or Landlord as a result of
or in anticipation of any actual, suspected or threatened violation of
environmental laws or release or threatened release of a Hazardous Substance or
Hazardous Waste on, in or from or otherwise affecting the Premises; such action
may include but need not be limited to, the disposition, distribution, sale,
disclaimer, or renunciation of any portion of the Premises.

                    (D) The costs of any required or necessary repair, cleanup
or detoxification of the Premises and the preparation and implementation of any
closure, remedial or other required plans.

               19.14.13 Landlord and Tenant agree that no portion of the Base
Rent paid by Tenant after the expiration of any period during which such rent
was abated shall be allocated by Landlord or Tenant to such abatement period,
nor is such rent intended by the parties to be allocable to any abatement
period.

               19.14.14 Landlord and Tenant waive trial by jury in the event of
any action, proceeding or counterclaim brought by either Landlord or Tenant
against the other in connection with this Lease. Tenant hereby designates all
courts of record, state and federal, sitting in Cincinnati, Ohio and having
jurisdiction over the subject matter, as forums where any action, suit or
proceeding in respect of or as arising from or out of this Lease, its making,
validity or performance, may be prosecuted against Tenant, its successors and
assigns, and by the foregoing designation Tenant consents to the jurisdiction
and venue of such courts.

               19.14.15 It is understood and agreed that this Lease shall not be
binding until and unless all parties have signed it.

     20. Tenant's Representations.

          20.1 Corporate Authority. If Tenant signs this Lease as a corporation
or partnership, each of the persons executing this Lease on behalf of Tenant
warrants to Landlord that (i) Tenant is a duly authorized corporation or
partnership, (ii) Tenant has the full right and authority to enter this Lease
and (iii) each and every person signing on behalf of Tenant is authorized to do
so. Upon Landlord's request, Tenant will provide evidence, satisfactory to
Landlord, confirming these representations.

          20.2 Financial Information. The financial information provided by
Tenant and any guarantors of this Lease, including without information balance
sheets, net worth statements, tax returns, income and expense reports, and other
documentation, is true and accurate.

     21. Liability of Landlord. The term "Landlord" as used in this Lease, so
far as covenants or agreements on the part of Landlord are concerned, shall be
limited to mean and include only the owner or owners of Landlord's interest in
this Lease at the time in question, and in the event of any transfer or
transfers of such interest Landlord herein named (and in case of any subsequent
transfer, the then transferor) shall be automatically freed and relieved from
and after the date of such transfer of all personal liability as respects the
performance of any covenants or agreements on the part of Landlord contained in
this Lease thereafter to be performed. If Landlord shall fail to perform or
observe any term, covenant, condition or

                                      22.

<PAGE>

obligation required to be performed or observed by it under this Lease, and if
Tenant shall, as a consequence thereof, recover a money judgment against
Landlord, Tenant agrees that it shall look solely to Landlord's right, title and
interest in and to the Building for the collection of such judgment, that being
the sole asset to which Tenant may look for payment of any such judgment; and
Tenant agrees that no other assets of Landlord, wherever situated, shall be
subject to levy, execution or other process for the satisfaction of Tenant's
judgment. Tenant further agrees that neither Landlord nor any of the managers,
members, partners, agents, representatives, or employees of Landlord shall be
liable for any deficiency.

     22. Consents. Wherever in this Lease the consent of a party is required,
such consent shall not be unreasonably withheld, conditioned or delayed.

     23. Exhibits. Exhibits A, B, C, D, and E are attached hereto and made a
part hereof by this reference.

     IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease on the day
and year first above written.

                                       LANDLORD:

Signed and acknowledged in             Ingalls Building Co. Ltd.
the presence of                        an Ohio limited liability company

/s/ JoAnne M. Hensley                  By: /s/ C. Blake Smith
---------------------------------          ------------------
Printed: JoAnne M. Hensley             Name: C. Blake Smith
                                       Title: Managing Partner

/s/ Jennifer Mizzell
---------------------------------
Printed: Jennifer Mizzell

Signed and acknowledged                TENANT:
in the presence of

                                       Grad Partners, Inc.
/s/ Janice Raymond                     a Delaware corporation
---------------------------------
JANICE RAYMOND

/s/ Robyn Feist                        By: /s/ Douglas L. Feist
---------------------------------          --------------------
ROBYN FEIST                            DOUGLAS L. FEIST
                                       Executive Vice President and Secretary

                                      23.

<PAGE>

STATE OF OHIO           )
                        )       SS:
COUNT OF HAMILTON       )

     The foregoing instrument was acknowledged before me this 12th day of
December, 2001 by C. BLAKE SMITH, Member of Ingalls Building Co. Ltd., an Ohio
limited liability company, on behalf of the company.

                                       /s/ JoAnne M. Hensley
                                       -----------------------------------
                                       Notary Public

STATE OF CALIFORNIA    )
                       )       SS:
COUNTY OF SAN DIEGO    )

     The foregoing instrument was acknowledged before me on this 10th day of
December, 2001, by DOUGLAS L. FEIST, the Executive Vice President and Secretary
of Grad Partners, Inc., on behalf of the corporation.

                                       /s/ Larana J. Fraser
                                       -----------------------------------
                                       LARANA J. FRASER
                                       Notary Pubic

                                      24.

<PAGE>

                                    EXHIBIT A

                              LOCATIONAL FLOOR PLAN

                     To be prepared and attached by Landlord

<PAGE>

                                   EXHIBIT B-1

                             Tenant's Buy-Out Clause

     In the event that the Tenant opts for early termination of the Lease,
Tenant will meet the following conditions:

     1    The Tenant will give the Landlord Ninety (90) days notice to terminate
          the lease prior to moving out of the premises. This notice must be
          delivered in writing. The Tenant must be current and in compliance
          with all terms and conditions of the lease.

     2    The Tenant will allow the Landlord access to the premises for the
          purpose of leasing the space to another tenant as provided for in the
          Lease.

     3    The Tenant will upon giving notice to terminate this Lease immediately
          pay the Landlord six (6) months rent of TWENTY-SEVEN THOUSAND ONE
          HUNDRED EIGHTY-SIX AND NO/100 DOLLARS ($27,186.00). This sum is to
          cover the rent once the Tenant has vacated the premise until the
          Landlord can release the premise. In addition the Tenant will continue
          to pay rent until Tenant vacates the premises. If the premises are
          released a refund for the balance will be refunded.

     4    The Tenant will give up any claim to the security deposit Tenant has
          paid. Any damaged to the premises beyond the normal wear and tear of
          general office work will be charged to the Tenant in addition to the
          security deposit.

     5    The Tenant will pay the unamortized remainder of the improvements cost
          to the Premises per section 4.0 of the Lease.

<PAGE>
                                    EXHIBIT C

                               RULES & REGULATIONS

     Tenant agrees to comply with the following rules and regulations and with
such reasonable modifications thereof and additions thereto as Landlord may
hereafter from time to time make for the Building. Landlord shall not be
responsible for the nonobservance by any other tenant of any of said rules and
regulations:

     (a) Tenant shall not exhibit, sell or offer for sale on the Premises or in
the Building any article or thing except those articles and things essentially
connected with the stated use of the Premises by Tenant without the advance
consent of Landlord.

     (b) Canvassing, soliciting or peddling in the Building is prohibited and
Tenant shall cooperate to prevent the same.

     (c) Tenant will not make or permit to be made any use of the Premises or
any part thereof which would violate any of the covenants, agreements, terms,
provisions and conditions of this Lease or which directly or indirectly is
forbidden by public law, ordinance or governmental regulation or which may be
dangerous to life, limb or property, or which may invalidate or increase the
premium cost of any policy of insurance carried on the Building or covering its
operation, or which will suffer or permit the Premises or any part thereof to be
used in any manner or anything to be brought into or kept therein which, in the
judgment of Landlord, shall in any way impair or tend to impair the character,
reputation or appearance of the Property as a high quality office building, or
which will impair or interfere with any of the services performed by Landlord
for the Property.

     (d) Tenant shall not display, inscribe, print, paint, maintain or affix on
any place in or about the Building any sign, notice, legend, direction, figure
or advertisement, except on the doors of the Premises and on the Building
directory, and then only such name(s) and matter, and in such color, size, place
and materials, as shall first have been approved by Landlord. The listing of any
name other than that of Tenant, whether on the doors of the Premises, on the
Building directory, or otherwise, shall not operate to vest any right or
interest in this Lease or in the Premises or be deemed to be the written consent
of Landlord, it being expressly understood that any such listing is a privilege
extended by Landlord revocable at will by written notice to Tenant.

     (e) Tenant shall not advertise the business, profession or activities of
Tenant conducted in the Building in any manner which violates the letter or
spirit of any code of ethics adopted by any recognized association or
organization pertaining to such business address of Tenant, and shall never use
any picture or likeness of the Building in any circulars, notices,
advertisements or correspondence without Landlord's consent.

     (f) No additional locks or similar devices shall be attached to any door or
window without Landlord's prior written consent. No keys for any door other than
those provided by Landlord shall be made. If more than two keys for one location
are desired, Landlord will

<PAGE>

provide the same upon payment by Tenant. All keys must be returned to Landlord
at the expiration or termination of this Lease.

     (g) All persons entering or leaving the Building after hours on Monday
through Friday, or at any time on Saturdays, Sundays, or holidays, may be
required to do so under such regulations as Landlord may impose. Landlord may
exclude or expel any peddler.

     (h) Tenant shall not overload any floor. All safes, furniture, boxes and
bulky articles, packages and freight shall be moved into or out of said Building
or from one part of the Building to another under supervision of Landlord and at
such times and according to such regulations as may be designated from time to
time by Landlord and at the entrance designated by Landlord. No packages or
freight shall be carried into the main entranceways of the Building unless
arrangements are first made with Landlord, who will prescribe the time and
manner for carrying in or removal of such articles. Tenant shall be responsible
for all injury to persons or property caused by installing, maintaining or
removing such articles.

     (i) Unless Landlord gives advance consent, Tenant shall not install or
operate any steam or internal combustion engine, boiler, machinery,
refrigerating or heating device or air-conditioning apparatus in or about the
Premises, or carry on any mechanical business therein, or use the Premises for
housing accommodations or lodging or sleeping purposes, or do any cooking
therein, or use any illumination other than electric light, or use or permit to
be brought into the Building any inflammable fluids such as gasoline, kerosene,
naphtha, and benzene, or any explosives, radioactive materials or other articles
deemed extra hazardous to life, limb or property. Tenant shall not use the
Premises for any illegal or immoral purpose. Tenant agrees specifically that no
food, soft drink, or vending machines will be installed in the Premises.

     (j) Tenant shall cooperate fully with Landlord to assure the effective
operation of the Building's air-conditioning system, including the closing of
Venetian blinds, and if windows are operable to keep them closed when the
air-conditioning system is in use.

     (k) Tenant shall not contract for any work or service which might involve
the employment of labor incompatible with the Building employees or employees of
contractors doing work or performing services by or on behalf of Landlord.

     (l) The sidewalks, halls, passages, exits, entrances, elevators and
stairways shall not be obstructed by Tenant or used for any purpose other than
for ingress to and egress from its Premises. The halls, passages, exits,
entrances, elevators, stairways and roof are not for the use of the general
public and Landlord shall in all cases retain the right to control and prevent
access thereto by all persons whose presence, in the judgment of Landlord, shall
be prejudicial to the safety, character, reputation and interests of the
Building and its tenants, provided that nothing herein contained shall be
constructed to prevent such access to persons with whom Tenant normally deals in
the ordinary course of Tenant's business unless such persons are engaged in
illegal activities. Neither Tenant nor any employees or invitees of Tenant shall
go upon the roof or mechanical areas of the Building.

     (m) No Tenant shall accumulate or store in the Premises any waste paper,
sweepings, rags, rubbish or other combustible matter and Tenant shall surrender
such matter to Landlord

<PAGE>

without compensation to be handled and disposed by Landlord. Nothing shall be
thrown by Tenant, their employees or guests, out of the windows or doors or down
the passages or skylights or over balcony rails of the Building. Nor shall any
waste materials be placed in the hallways or Building public areas at any time.

     (n) Tenant shall not use, keep or permit to be used explosives, articles of
a dangerous nature, or keep any foul or noxious gas or substance in the
Premises, or permit or suffer the Premises to be occupied or used in a manner
offensive or objectionable to Landlord or other occupants of the Building by
reason of noise, odors and/or vibrations, or interfere in any way with other
tenants or those having business therein, nor shall any animals or birds be
brought in or kept in or about the Property.

     (o) Tenant shall see that the doors, and windows, if operable, of the
Premises are closed and securely locked before leaving the Building and must
observe strict care and caution that all water faucets or water apparatus are
entirely shut off before Tenant or Tenant's employees leave the Building, and
that all electricity shall likewise be carefully shut off so as to prevent waste
or damage.

     (p) If a Tenant desires telegraphic or telephonic connections, Landlord
will direct the electricians as to where the wires are to be introduced and
without such direction no boring or cutting for wires shall be permitted.

     (q) The water closets and other apparatus shall not be used for any
purposes other than those for which they were constructed, and no sweepings,
rubbish rags or other substances shall be thrown therein. Any damages resulting
to them from misuse shall be borne by Tenant who shall cause it.

     (r) Ice, mineral water, toilet and other supplies shall not be furnished by
persons other than those approved by Landlord.

     (s) Landlord will furnish janitorial service and Tenant may not employ
their own janitors except with the written consent of Landlord. When employed by
Tenant, such janitors shall be subject to the regulations and control of
Landlord, but any such janitors shall not be considered as a servant or employee
of Landlord. Landlord shall not be liable for failure to furnish janitorial
service by reason of strikes or other causes.

     (t) In the event Tenant installs extra heat-producing equipment in the
Premises that exceeds the standard air conditioning system design, thereby
overloading the system, Landlord may install additional air conditioning
equipment at Tenant's expense.

     (u) Tenant shall be required to obtain written consent of Landlord and use
only authorized office moving companies when moving in or out of the Building.
Tenant shall coordinate the times and method of moving in or out of the Building
with Landlord.

     (v) Tenant shall be liable for injury or damage caused by the infraction of
any of the above rules and regulations; or for acts causing damage to the
Building of its appliances. Landlord may at once repair said damage or injury,
charging cost of same to Tenant, which amount shall be part of the rent due for
the ensuing month.

<PAGE>

     (w) Tenant shall refrain from using or permitting the premises or any
portion thereof to be used as living quarters, sleeping quarters, or lodging.

In addition to all other liabilities for breach of any covenant of this Exhibit
C, Tenant shall pay to Landlord an amount equal to any increase in insurance
premiums payable by Landlord or any other tenant in the Building, caused by such
breach.

<PAGE>

                                    EXHIBIT D

                                GUARANTY OF LEASE

     THIS GUARANTY dated as of December 10, 2001, by and between Direct III
Marketing, Inc., ("Guarantor") to and for the benefit of Ingalls Building Co.,
Ltd, an Ohio Corporation, having a mailing address of 6 East Fourth Street,
Suite 1200, Cincinnati, Ohio 45202 ("Landlord").

                                   WITNESSETH

     WHEREAS, Grad Partners, Inc., ("Tenant"), a wholly owned subsidiary of
Guarantor, has entered into a Lease with Landlord as of this date pursuant to
which Tenant has leased certain Premises, as therein defined, a part of an
office building commonly known as The Ingalls building, located at 6 East Fourth
Street, Cincinnati, Hamilton County, Ohio;

     WHEREAS, it is in the interest of Tenant and the Guarantor that the
contemplated transaction be consummated.

     NOW, THEREFORE, in consideration of the foregoing recitals and to induce
Landlord to enter into the Lease and to lease the Premises to Tenant, and for
other good and valuable considerations, the receipt and sufficiency of which are
hereby acknowledged, the Guarantor:

     1. Unconditionally and absolutely guarantees the performance of Tenant's
obligations under the Lease and the due and punctual payment of all Rent
including, but not limited to, Base Rent, as defined in and provided for in the
Lease, and all other sums that may be due Landlord from Tenant under the Lease,
and the due and punctual performance and observance by Tenant of all the other
terms, covenants and conditions of the Lease, whether according to the present
terms thereof, at any earlier or accelerated date or dates as provided therein,
or pursuant to any extension of time or to any change or changes or amendment in
the terms, covenants and conditions thereof now or at any time hereafter made or
granted.

     2. Waives diligence, presentment, protest, demand for payment, extension of
time of payment, notice of acceptance of this Guaranty, any failure, omission,
delay or lack on the part of Landlord to enforce, assert or exercise any right,
power or remedy of Landlord under the Lease, nonpayment at maturity and
indulgences and notices of every kind and consents to any and all forbearances
and extensions of the time of payment of sums due under the Lease and to any and
all changes in the terms, covenants and conditions thereof hereafter made or
granted; it being the intention hereof that the Guarantor shall remain liable as
principal until the full amount of all Rent including, but not limited to, Base
Rent and other sums due Landlord, and including damages for breach of Lease, if
any, and any other sums due or to become due thereon or under the Lease shall
have been fully paid to Landlord.

     3. Agrees that Guarantor shall have no right of subrogation whatsoever with
respect to the aforesaid indebtedness, or to any monies due and unpaid thereon
or any collateral securing the same, unless and until Landlord shall have
received payment in full of all sums due under the Lease.

     4. Agrees that this Guaranty may be enforced by Landlord without first
resorting to or exhausting any deposit, security or collateral and without first
having recourse to the Lease

<PAGE>

and any property of Tenant or security thereunder or through legal proceedings
or otherwise; provided, however, that nothing herein contained shall prevent
Landlord from suing Tenant under the Lease without making the Guarantor a party
to the suit, or from exercising any other rights thereunder, and if such suit,
or other remedy is availed of, only the net proceeds therefrom, after deduction
of all charges and expenses of every kind and nature whatsoever, shall be
applied in reduction of the amount due under the Lease.

     5. Agrees that Guarantor's obligation to make payment in accordance with
the terms of this Guaranty shall not be impaired, modified, changed, released or
limited in any manner whatsoever by (i) any set-off, counterclaim, reduction or
diminution of any obligation or defense of any kind or nature that the Guarantor
may have or has against Tenant, (ii) any impairment, modification, change,
release or limitation of the liability of Tenant or its estate in bankruptcy
resulting from the operation of any present or future provision of the United
States Bankruptcy Code or other similar statute or from the decision of any
court.

     6. Agrees that in the event of the insolvency of Tenant, or the inability
of Tenant to pay debts as they mature or an assignment by Tenant for the benefit
of creditors or the institution of any proceedings by or against Tenant alleging
that Tenant is insolvent or unable to pay debts as they mature, and if such
event shall occur at a time when the aforesaid indebtedness or any part thereof
may not then be due and payable, Guarantor will pay to Landlord forthwith the
full amount which would be then due and payable, and Guarantor shall thereafter
continue to pay when due all Rent including, but not limited to, Base Rent and
other sums owed Landlord pursuant to the terms of the Lease.

     7. Agrees that in the event this Guaranty is placed in the hands of an
attorney for enforcement, the Guarantor will reimburse Landlord for all expenses
incurred including, but not limited to, reasonable attorneys' fees.

     8. Agrees that this Guaranty shall inure to the benefit of and may be
enforced by Landlord and any subsequent owner of Landlord's interest under the
Lease, and shall be binding upon and enforceable against the Guarantor and the
Guarantor's representatives, successors and assigns.

     9. Agrees that this Guaranty shall in all respects be a continuing,
absolute and unconditional guaranty, and shall remain in full force and effect,
notwithstanding, without limitation, the dissolution of the Guarantor.

     IN WITNESS WHEREOF, the Guarantor has executed this instrument as of the
day and year first written above.

WITNESSES:                          DIRECT III MARKETING, INC. a Delaware
                                    corporation

                                    By:
-----------------------------       --------------------------------------
JANICE RAYMOND                      DOUGLAS L. FEIST
                                    Executive Vice President and Secretary

-----------------------------
ROBYN FEIST

<PAGE>

                                    EXHIBIT E

                          TERMINATION OF EXISTING LEASE

In consideration of the execution of this Lease Agreement by the Parties, be it
acknowledged that Grad Partners, Inc., (Lessee) and Ingalls Building Co. Ltd.
(Lessor) under a certain lease agreement between the parties, dated July 31,
2001, do hereby mutually agreed to terminate and cancel said Lease effective
January 31, 2002. All rights and obligations under said Lease shall thereupon be
cancelled excepting only for any rents under the lease accruing prior to the
effective termination date which then remain unpaid or otherwise not satisfied,
and which shall be paid by lessee on or prior to termination date. All rental
Deposits held by Lessor shall be retained by the Lessor and applied to deposits
required under the terms of this new Lease Agreement.<PAGE>

                                                                   Exhibit 10.19

                       FIRST AMENDMENT TO LEASE AGREEMENT

     THIS FIRST AMENDMENT TO LEASE AGREEMENT ("First Amendment") is dated as of
December 10, 2002, between SQUARE 24 ASSOCIATES, L.P., a District of Columbia
limited partnership ("Landlord"), and Education Lending Group, Inc., a Delaware
corporation ("Tenant").

     A. Landlord and Tenant are parties to that certain Highlands Corporate
Center Lease dated as of January 2002 (the "Lease"), pursuant to which Landlord
leased to Tenant real property commonly described as, 12770 High Bluff Drive,
Suite 210 (1,983 rsf) and Suite 340 (5,554 rsf), San Diego, CA 92130 consisting
of a total of 7,537 rentable square feet.

     B. By this Agreement, Landlord and Tenant agree to the Second Expansion
Premises.

     C. Except as otherwise expressly defined herein, all capitalized terms used
in this Amendment shall have the same meaning as set forth in the Lease.

     NOW THEREFORE, in consideration of the foregoing Recitals, the mutual
covenants and agreements contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Landlord and Tenant agree, and amend the Lease again, as follows:

     1.   The definition of "Premises" set forth as Schedule 2 of the Lease has
          changed and is stated here for convenience as follows:

          Existing Premises:

          Suite 210 of the 12760 Building consisting of 1,983 rentable square
          feet.

          Expansion Premises:

          Suite 340 of the 12770 Building consisting of 5,554 rentable square
          feet.

          Second Expansion Premises.

          Suite 140 in the 12770 Building consisting of 1,544 rentable square
          feet.

          Total square footage of all spaces equals 9,081 rentable square feet.

     2.   Effective Date. This First Amendment shall become effective as of
          January 1, 2003 (the "First Amendment Effective Date").

     3.   Termination Date/Term. The Term of the Lease shall be twenty-five
          months (25) and shall terminate on January 31, 2005.

     4.   Base Rent. The definition of "Base Rent" as set forth in Schedule 14
          on page 2 of the Lease is amended as follows:

                                       -1-

<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                   Annual       (Existing    (Expansion     (Second      Monthly      (Existing    (Expansion     (Second
   Months*        Base Rent     Premises)    Premises)     Expansion    Base Rent     Premises)    Premises)     Expansion
   -------        ---------     ---------    ---------     Premises)    ---------     ---------    ---------     Premises)
                                                          ---------                                             ---------
   <S>          <C>            <C>          <C>           <C>          <C>           <C>          <C>           <C>
-----------------------------------------------------------------------------------------------------------------------------
    1 - 12      $294,660.31    $64,344.36   $180,216.24   $50,099.71   $24,555.03    $5,362.03    $15,018.02    $4,174.98
-----------------------------------------------------------------------------------------------------------------------------
   13 - 25      $306,443.76    $66,918.12   $187,424.88   $52,100.76   $25,536.98    $5,576.51    $15,618.74    $4,341.73
-----------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

*For purposes of this Amendment, month one (1) will be January 2003.

     5.   Proportionate Share. Tenant's proportionate share of the Second
          Expansion Space in the 12770 Building is 4%.

     6.   Option to Extend. Provided Tenant is not in default of the Lease,
          Tenant shall receive one (1) Option to Extend the lease for five (5)
          years. The Option to Extend will be at the greater of fair market rent
          for buildings within the Del Mar Heights area or current lease rate at
          the time extension is signed. Tenant shall provide Landlord with no
          less than nine (9) months prior written notice. The rights herein
          shall be for the benefit of the Tenant and may only be exercised by
          Tenant (and not any assignee, sublessee, or other transfer of Tenant's
          interest in the Lease).

     7.   Security Deposit. Landlord shall retain Tenant's current Security
          Deposit.

     8.   Parking. During the term of this First Amendment, Tenant will be
          entitled to four (4) parking spaces. During this extended term of the
          Lease, Tenant will not be assessed a charge for the parking spaces.

     9.   Tenant Improvements. It is agreed that Landlord will do the following
          tenant improvements in the suite:

               .    demise the space from Suite 160
               .    remove the two (2) walls
               .    change the door swing into storage room
               .    replace VCT in storage room
               .    paint and carpet the premises

     10.  Governing Law. This First Amendment shall be governed by, and
          construed and enforced in accordance with, the laws of the State of
          California.

     11.  Counterparts. This First Amendment may be executed in any number of
          counterparts, each of which when so executed and delivered shall be
          deemed to be an original and all of which counterparts taken together
          shall constitute but one and the same instrument. Signature pages may
          be detached from the counterparts and attached to a single copy of
          this First Amendment to physically form one document.

                                       -2-

<PAGE>

     12.  Reaffirmation of Obligations. Tenant hereby acknowledges and reaffirms
          all of its obligations under the Lease, as such Lease has been amended
          by this First Amendment, and agrees that any reference made in any
          other document to the Lease shall mean the Lease as amended pursuant
          to the First Amendment. Tenant acknowledges, to the best of its
          knowledge, Landlord is not now in default of any obligation under the
          Lease. Except as expressly provided herein, the Lease remains
          unmodified and in full force and effect. Any breach by Tenant of this
          First Amendment, including any exhibit hereto, shall constitute a
          breach and default by Tenant under the Lease.

                         SIGNATURES APPEAR ON NEXT PAGE

                                       -3-

<PAGE>

     IN WITNESS WHEREOF, Landlord and Tenant have caused this Third Amendment to
be duly executed and delivered as of the date first above written.

TENANT

EDUCATION LENDING GROUP, INC.
a Delaware corporation

By:  /s/ Douglas L. Feist
Print Name: Douglas L. Feist
Print Title: EVP and Secretary

LANDLORD:

SQUARE 24 ASSOCIATES,
a District of Columbia limited partnership

     By:    Carr Real Estate Services, L.L.C., a Delaware
            limited liability company, its General Partner
            By:    Carr Real Estate Services Partnership, a
                   Delaware partnership, its Sole Member
                   By:    Carr Realty L.P., a Delaware limited
                          partnership, its managing Partner
                          By:   CarrAmerica Realty
                                Corporation, a Maryland
                                corporation, its General
                                Partner

By: /s/ W.M. O'Donnell, JR
Print Name:  W.M. O'Donnell, JR
Print Title: Managing Director

                                       -4-

<PAGE>

                                    EXHIBIT A

                             DIAGRAM OF THE PREMISES

                                       B-1

<PAGE>

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

                                      Lease

                           HIGHLANDS CORPORATE CENTER

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

                                     Between

                           DIRECT III MARKETING, INC.
                       dba "Education Lending Group, Inc."

                                    (Tenant)

                                       and

                            SQUARE 24 ASSOCIATES L.P.

                                   (Landlord)

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page

1. LEASE AGREEMENT ........................................................    2

2. RENT ...................................................................    2

3. PREPARATION AND CONDITION OF PREMISES; POSSESSION AND
   SURRENDER OF PREMISES ..................................................    8

4. PROJECT SERVICES .......................................................    9

5. ALTERATIONS AND REPAIRS ................................................   10

6. USE OF PREMISES ........................................................   13

7. GOVERNMENTAL REQUIREMENTS AND PROJECT RULES ............................   13

8. WAIVER OF CLAIMS; INDEMNIFICATION; INSURANCE ...........................   14

9. FIRE AND OTHER CASUALTY ................................................   16

10. EMINENT DOMAIN ........................................................   16

11. RIGHTS RESERVED TO LANDLORD ...........................................   16

12. TENANT'S DEFAULT ......................................................   18

13. LANDLORD REMEDIES .....................................................   19

14. SURRENDER .............................................................   20

15. HOLDOVER ..............................................................   21

16. SUBORDINATION TO GROUND LEASES AND MORTGAGES ..........................   21

17. ASSIGNMENT AND SUBLEASE ...............................................   22

18. CONVEYANCE BY LANDLORD ................................................   23

19. ESTOPPEL CERTIFICATE ..................................................   23

20. SECURITY DEPOSIT ......................................................   24

21. FORCE MAJEURE .........................................................   24

22. TENANT'S PERSONAL PROPERTY AND FIXTURES ...............................   25

23. NOTICES ...............................................................   25

24. QUIET POSSESSION ......................................................   26

25. REAL ESTATE BROKER ....................................................   26

26. MISCELLANEOUS .........................................................   26

27. UNRELATED BUSINESS INCOME .............................................   28

28. HAZARDOUS SUBSTANCES ..................................................   28

29. EXCULPATION ...........................................................   30

30. EXTENSION OPTION ......................................................   31

                                       -i-

<PAGE>

                                      LEASE

     THIS LEASE (the "Lease") is made as of January ____, 2002 between SQUARE 24
ASSOCIATES L.P., a Delaware limited partnership (the "Landlord") and the Tenant
as named in the Schedule below. The term "Project" means the buildings known as
"Highlands Corporate Center" and the land (the "Land") located at 12730-12780
High Bluff Drive, San Diego, California. The office building at (i) 12760 High
Bluff Drive (the "12760 Building"), and (ii) 12770 High Bluff Drive (the "12770
Building") shall each hereafter individually be referred to as a "Building", and
collectively the "Buildings". The "Premises" means that part of the Project
leased to Tenant described in the Schedule and outlined on Appendix A.

     The following schedule (the "Schedule") is an integral part of this Lease.
Terms defined in this Schedule shall have the same meaning throughout the Lease.

                                    SCHEDULE

1.   Tenant: Direct III Marketing, Inc., a Delaware corporation, doing business
     as the "Education Lending Group, Inc."

2.   Existing Premises: Suite 210 of the 12760 Building.
     Expansion Premises: Suite 340 of the 12770 Building. The Existing Premises
     and the Expansion Premises, each as more particularly outlined on Appendix
     A, shall hereinafter collectively be referred to as the "Premises."

3.   Rentable Square Feet of the Premises: 7,537 rentable square feet (1,983
     rentable square feet (Existing Premises) and 5,554 rentable square feet
     (Expansion Premises) ("Rentable Area"). The Rentable Area shall be
     confirmed by and shall be deemed to be the rentable area specified by
     Landlord and Tenant in the Commencement Date Confirmation, in the form of
     Appendix E attached hereto (the "Commencement Date Confirmation"), to be
     executed by Landlord and Tenant upon commencement of this Lease.

4.   Tenant's Proportionate Share of the 12760 Building: 5.3%.

5.   Tenant's Proportionate Share of the 12770 Building: 16%.

6.   Tenant's Proportionate Share of the Project: 3.7%.

7.   Security Deposit: $58,788.60.

8.   Tenant's Real Estate Broker for this Lease: N/A

9.   Landlord's Real Estate Broker for this Lease: N/A

10.  Tenant Improvements, if any: See the Tenant Improvement Agreement attached
     hereto as Appendix C

                                       -1-

<PAGE>

11.  Commencement Date: February 1, 2002, but if any portion of the Premises are
     subject to tenant improvements pursuant to Appendix C, then the Completion
     Date, as defined therein, if it is later; Landlord and Tenant shall execute
     a Commencement Date Confirmation promptly following the Commencement Date.

12.  Termination Date/Term: Thirty-six (36) months after the Commencement Date,
     or if the Commencement Date is not the first day of a month, then
     thirty-six (36) months after the last day of the first full calendar month
     following the Commencement Date.

13.  Base Year: 2002

14.  Base Rent:
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
                     Annual            (Existing       (Expansion      Monthly          (Existing        (Expansion
Period               Base Rent*        Premises)       Premises)       Base Rent*       Premises)        Premises)
------               ---------         ---------       ---------       ---------        ---------        ---------
<S>                  <C>               <C>             <C>             <C>              <C>              <C>
------------------------------------------------------------------------------------------------------------------------
Months 1-2           $235,154.50       $61,869.60      $173,284.80     $19,596.20       $5,155.80        $14,440.40
------------------------------------------------------------------------------------------------------------------------
Months 13-24         $244,560.60       $64,344.36      $180,216.24     $20,380.05       $5,362.03        $15,018.02
------------------------------------------------------------------------------------------------------------------------
Months 25-36         $254,343.00       $66,918.12      $187,424.88     $21,195.25       $5,576.51        $15,618.74
------------------------------------------------------------------------------------------------------------------------
*Net of
Electricity
------------------------------------------------------------------------------------------------------------------------
</TABLE>

15.  Sole Permitted Use: General office purposes and no other purpose; however,
     in no event in violation of the Government Regulations (hereinafter
     defined) or of any provision of the Rules and Regulations attached as
     Appendix B hereto (the "Permitted Use").

     1. LEASE AGREEMENT. On the terms stated in this Lease, Landlord leases the
Premises to Tenant, and Tenant leases the Premises from Landlord, for the Term
beginning on the Commencement Date and ending on the Termination Date unless
extended or sooner terminated pursuant to this Lease.

     2. RENT.

     A. Types of Rent. Tenant shall pay the following Rent in the form of a
check to Landlord at the following address:

         Square 24 Associates L.P.
         t/a Highlands Corporate Center
         P.O. Box -198427
         Atlanta, GA  30384-0566

                                       -2-

<PAGE>

or by wire transfer as follows:

         NationsBank, N.A. (South)
         ABA Number 061-000-052
         Account Number 00 327 220 5750

or in such other manner as Landlord may notify Tenant:

          (1) Base Rent in monthly installments, without deduction or offset, in
     advance, the first monthly installment payable concurrently with the
     execution of this Lease and thereafter on or before the first day of each
     month of the Term in the amount set forth on the Schedule.

          (2) Operating Cost Share Rent paid monthly in advance in an estimated
     amount. "Operating Cost Share Rent" means an amount equal to the Tenant's
     Proportionate Share of the excess of Operating Costs for the applicable
     Fiscal Year of the Lease (the "Excess Operating Costs") over the Operating
     Costs for the Base Year (the "Base Operating Costs"). Definitions of
     Operating Costs and Tenant's Proportionate Share, and the method for
     billing and payment of Operating Cost Share Rent are set forth in Sections
     2B, 2C and 2D.

          (3) Tax Share Rent paid monthly in advance in an estimated amount.
     "Tax Share Rent" means an amount equal to the Tenant's Proportionate Share
     of the excess of Taxes for the applicable Fiscal Year of this Lease (the
     "Excess Taxes") over the Taxes for the Base Year (the "Base Taxes"). A
     definition of Taxes and the method for billing and payment of Tax Share
     Rent are set forth in Sections 2B, 2C and 2D.

          (4) Electricity Share Rent paid monthly in advance in an estimated
     amount. "Electricity Share Rent" means an amount equal to Tenant's
     Proportionate Share of the cost of electricity for the applicable Fiscal
     Year of this Lease, without regard to the cost of electricity in the Base
     Year. The method of billing and payment of Electricity Share Rent is set
     forth in Sections 2B, 2C and 2D.

          (5) Parking Rent in monthly installments, in advance, for each of the
     reserved parking spaces allocated to Tenant pursuant to Section 4G, at an
     initial monthly rate per parking space of $55 per month (the "Parking
     Rent"). Landlord shall have the right, from time to time, to increase the
     Parking Rent to the then prevailing monthly market rate for reserved
     parking spaces, as reasonably determined by Landlord.

          (6) Additional Rent upon demand or as otherwise provided herein.
     "Additional Rent" means the amount of all costs, expenses, liabilities, and
     amounts which Tenant is required to pay under this Lease, excluding Base
     Rent, Operating Cost Share Rent, Tax Share Rent, Electricity Share Rent and
     Parking Rent, but including any interest for late payment of any item of
     Rent.

          (7) Rent as used in this Lease means Base Rent, Operating Cost Share
     Rent, Tax Share Rent, Electricity Share Rent, Parking Rent and Additional
     Rent. Tenant's

                                       -3-

<PAGE>

     agreement to pay Rent is an independent covenant, with no right of setoff,
     deduction or counterclaim of any kind.

     B. Payment of Operating Cost Share Rent, Tax Share Rent and Electricity
Share Rent.

          (1) Payment of Estimated Operating Cost Share Rent, Tax Share Rent and
     Electricity Share Rent. Landlord shall estimate the Operating Costs, Taxes
     and the cost of electricity of the Project by April 1 of each Fiscal Year,
     or as soon as reasonably possible thereafter. Landlord may revise these
     estimates whenever it obtains more accurate information, such as the final
     real estate tax assessment or tax rate for the Project.

          Within ten (10) days after receiving the original or revised estimate
     from Landlord setting forth (a) an estimate of Operating Costs for a
     particular Fiscal Year, (b) the Base Operating Costs, and (c) the resulting
     estimate of Excess Operating Costs for such Fiscal Year, Tenant shall pay
     Landlord one-twelfth (1/12th) of Tenant's Proportionate Share of the
     estimated Excess Operating Costs, multiplied by the number of months that
     have elapsed in the applicable Fiscal Year to the date of such payment
     including the current month, minus payments previously made by Tenant for
     the months elapsed. On the first day of each month thereafter, Tenant shall
     pay Landlord one-twelfth (1/12th) of Tenant's Proportionate Share of this
     estimate, until a new estimate becomes applicable.

          Within ten (10) days after receiving the original or revised estimate
     from Landlord setting forth (a) an estimate of Taxes for a particular
     Fiscal Year, (b) the Base Taxes, and (c) the resulting estimate of Excess
     Taxes for such Fiscal Year, Tenant shall pay Landlord one-twelfth (1/12th)
     of Tenant's Proportionate Share of the estimated Excess Taxes, multiplied
     by the number of months that have elapsed in the applicable Fiscal Year to
     the date of such payment including the current month, minus payments
     previously made by Tenant for the months elapsed. On the first day of each
     month thereafter, Tenant shall pay Landlord one-twelfth (1/12th) of
     Tenant's Proportionate Share of this estimate, until a new estimate becomes
     applicable.

          Within ten (10) days after receiving the original or revised estimate
     from Landlord setting forth (a) an estimate of the annual cost of
     electricity at the Project, Tenant shall pay Landlord as Electricity Share
     Rent one-twelfth (1/12th) of Tenant's Proportionate Share of the estimated
     cost of electricity, multiplied by the number of months that have elapsed
     in the applicable Fiscal Year to the date of such payment including the
     current month, minus payments previously made by Tenant for the months
     elapsed. On the first day of each month thereafter, Tenant shall pay
     Landlord one-twelfth (1/12th) of Tenant's Proportionate Share of this
     estimate, until a new estimate becomes applicable.

          (2) Correction of Operating Cost Share Rent. Landlord shall deliver to
     Tenant a report for the previous Fiscal Year (the "Operating Cost Report")
     by April 1 of each year, or as soon as reasonably possible thereafter,
     setting forth (a) the actual Operating

                                       -4-

<PAGE>

     Costs incurred, (b) the Base Operating Costs, (c) the amount of Operating
     Cost Share Rent due from Tenant, and (d) the amount of Operating Cost Share
     Rent paid by Tenant. Within twenty (20) days after such delivery, Tenant
     shall pay to Landlord the amount due minus the amount paid. If the amount
     paid exceeds the amount due, Landlord shall apply the excess to Tenant's
     payments of Operating Cost Share Rent next coming due, or if none, shall
     refund such excess to Tenant within thirty (30) days following the date of
     such report. Such obligation shall survive the expiration or earlier
     termination of this Lease.

          (3) Correction of Tax Share Rent. Landlord shall deliver to Tenant a
     report for the previous Fiscal Year (the "Tax Report") by April 1 of each
     year, or as soon as reasonably possible thereafter, setting forth (a) the
     actual Taxes, (b) the Base Taxes, (c) the amount of Tax Share Rent due from
     Tenant, and (d) the amount of Tax Share Rent paid by Tenant. Within twenty
     (20) days after such delivery, Tenant shall pay to Landlord the amount due
     from Tenant minus the amount paid by Tenant. If the amount paid exceeds the
     amount due, Landlord shall apply any excess as a credit against Tenant's
     payments of Tax Share Rent next coming due, or if none, shall refund such
     excess to Tenant within thirty (30) days following the date of such report.
     Such obligation shall survive the expiration or earlier termination of this
     Lease for such a period of sixty (60) months.

          (4) Correction of Electricity Share Rent. Landlord shall deliver to
     Tenant a report for the previous fiscal year (the "Electricity Cost
     Report") by May 15 of each year, or as soon as reasonably possible
     thereafter, setting forth (a) the actual cost of electricity for the
     Project, (b) the amount of Electricity Share Rent due from Tenant, and (c)
     the amount of Electricity Share Rent paid by Tenant. Within twenty (20)
     days after such delivery, Tenant shall pay to Landlord the amount due from
     Tenant minus the amount paid by Tenant. If the amount paid exceeds the
     amount due, Landlord shall apply any excess as a credit against Tenant's
     payments of Electricity Share Rent next coming due, or if none, shall
     refund such excess to Tenant within thirty (30) days following the date of
     such report. Such obligation shall survive the expiration or earlier
     termination of this Lease for such a period of sixty (60) months.

     C. Definitions.

          (1) Included Operating Costs. "Operating Costs" means any expenses,
     costs and disbursements of any kind other than Taxes and the cost of
     electricity, paid or incurred by Landlord in connection with the
     management, maintenance, operation, insurance, repair and other related
     activities in connection with any part of the Project and of the personal
     property, fixtures, machinery, equipment, systems and apparatus used in
     connection therewith, including the cost of providing those services
     required to be furnished by Landlord under this Lease, other than
     electricity, which shall be accounted for separately as Electricity Share
     Rent. Operating Costs shall also include the costs of any capital
     improvements which are intended to reduce Operating Costs or improve
     safety, and those made to keep the Project in compliance with governmental
     requirements applicable from time to time (collectively, "Included Capital
     Items"); provided, that the costs of any Included Capital Item shall be
     amortized by Landlord, together with an

                                       -5-

<PAGE>

     amount equal to interest at ten percent (10%) per annum, over the estimated
     useful life of such item and such amortized costs are only included in
     Operating Costs for that portion of the useful life of the Included Capital
     Item which falls within the Term.

          If the Project is not fully occupied during any portion of any fiscal
     year, Landlord may adjust (an "Equitable Adjustment") Operating Costs to
     equal what would have been incurred by Landlord had the Project been fully
     occupied. This Equitable Adjustment shall apply only to Operating Costs
     which are variable and therefore increase as occupancy of the Project
     increases. Landlord may incorporate the Equitable Adjustment in its
     estimates of Operating Costs.

          If Landlord does not furnish any particular service whose cost would
     have constituted an Operating Cost to a tenant other than Tenant who has
     undertaken to perform such service itself, Operating Costs shall be
     increased by the amount which Landlord would have incurred if it had
     furnished the service to such tenant.

          (2)  Excluded Operating Costs. Operating Costs shall not include:

          (a)  costs of alterations of tenant premises;

          (b)  costs of capital improvements other than Included Capital Items;

          (c)  interest and principal payments on mortgages or any other debt
               costs, or rental payments on any ground lease of the Project;

          (d)  real estate brokers' leasing commissions;

          (e)  legal fees, space planner fees and advertising expenses incurred
               with regard to leasing the Project or portions thereof;

          (f)  any cost or expenditure for which Landlord is reimbursed, by
               insurance proceeds or otherwise, except by Operating Cost Share
               Rent;

          (g)  the cost of any service furnished to any office tenant of the
               Project which Landlord does not make available to Tenant;

          (h)  depreciation (except on any Included Capital Items);

          (i)  franchise or income taxes imposed upon Landlord;

          (j)  costs of correcting defects in construction of the Project (as
               opposed to the cost of normal repair, maintenance and replacement
               expected with the construction materials and equipment installed
               in the Project in light of their specifications);

          (k)  legal and auditing fees which are for the benefit of Landlord
               such as collecting delinquent rents, preparing tax returns and
               other financial

                                       -6-

<PAGE>

               statements, and audits other than those incurred in connection
               with the preparation of reports required pursuant to Section 2B
               above;

          (l)  the wages of any employee for services not related directly to
               the management, maintenance, operation and repair of the Project;
               and

          (m)  fines, penalties and interest.

          (3) Taxes. "Taxes" means any and all taxes, assessments and charges of
     any kind, general or special, ordinary or extraordinary, levied against the
     Project, which Landlord shall pay or become obligated to pay in connection
     with the ownership, leasing, renting, management, use, occupancy, control
     or operation of the Project or of the personal property, fixtures,
     machinery, equipment, systems and apparatus used in connection therewith.
     Taxes shall include real estate taxes, personal property taxes, sewer
     rents, water rents, special or general assessments, transit taxes, ad
     valorem taxes, and any tax levied on the rents hereunder or the interest of
     Landlord under this Lease (the "Rent Tax"). Taxes shall also include all
     fees and other costs and expenses paid by Landlord in reviewing any tax and
     in seeking a refund or reduction of any Taxes, whether or not the Landlord
     is ultimately successful.

          For any year, the amount to be included in Taxes (a) from taxes or
     assessments payable in installments, shall be the amount of the
     installments (with any interest) due and payable during such year, and (b)
     from all other Taxes, shall at Landlord's election be the amount accrued,
     assessed, or otherwise imposed for such year or the amount due and payable
     in such year. Any refund or other adjustment to any Taxes by the taxing
     authority, shall apply during the year in which the adjustment is made.

          Taxes shall not include any net income (except Rent Tax), capital,
     stock, succession, transfer, franchise, gift, estate or inheritance tax,
     except to the extent that such tax shall be imposed in lieu of any portion
     of Taxes.

          (4) Lease Year. "Lease Year" means each consecutive twelve-month
     period beginning with the Commencement Date, except that if the
     Commencement Date is not the first day of a calendar month, then the first
     Lease Year shall be the period from the Commencement Date through the final
     day of the twelve months after the first day of the following month, and
     each subsequent Lease Year shall be the twelve months following the prior
     Lease Year.

          (5) Fiscal Year. "Fiscal Year" means the calendar year, except that
     the first fiscal year and the last fiscal year of the Term may be a partial
     calendar year.

     D. Computation of Base Rent and Rent Adjustments.

          (1) Prorations. If this Lease begins on a day other than the first day
     of a month, the Base Rent, Operating Cost Share Rent and Tax Share Rent
     shall be prorated for such partial month based on the actual number of days
     in such month. If this Lease begins on a day other than the first day, or
     ends on a day other than the last day, of the

                                       -7-

<PAGE>

     fiscal year, Operating Cost Share Rent and Tax Share Rent shall be prorated
     for the applicable fiscal year.

          (2) Default Interest. Any sum due from Tenant to Landlord not paid
     when due shall bear interest from the date due until paid at the lesser of
     eighteen percent (18%) per annum or the maximum rate permitted by law.

          (3) Rent Adjustments. The square footage of the Premises and the
     Buildings set forth in the Schedule are conclusively deemed to be the
     actual square footage thereof, without regard to any subsequent
     remeasurement of the Premises or the Buildings. If any Operating Cost paid
     in one fiscal year relates to more than one fiscal year, Landlord may
     proportionately allocate such Operating Cost among the related Fiscal
     Years.

          (4) Books and Records. Landlord shall maintain books and records
     reflecting the Operating Costs and Taxes in accordance with sound
     accounting and management practices. Tenant and its certified public
     accountant shall have the right to inspect Landlord's records at Landlord's
     office upon at least seventy-two (72) hours' prior notice during normal
     business hours during the ninety (90) days following the respective
     delivery of the Operating Cost Report or the Tax Report. The results of any
     such inspection shall be kept strictly confidential by Tenant and its
     agents, and Tenant and its certified public accountant must agree, in their
     contract for such services, to such confidentiality restrictions and shall
     specifically agree that the results shall not be made available to any
     other tenant of the Project. Unless Tenant sends to Landlord any written
     exception to either such report within said ninety (90) day period, such
     report shall be deemed final and accepted by Tenant. Tenant shall pay the
     amount shown on both reports in the manner prescribed in this Lease,
     whether or not Tenant takes any such written exception, without any
     prejudice to such exception. If Tenant makes a timely exception, Landlord
     shall cause its independent certified public accountant to issue a final
     and conclusive resolution of Tenant's exception. Tenant shall pay the cost
     of such certification unless Landlord's original determination of annual
     Operating Costs or Taxes overstated the amounts thereof by more than five
     percent (5%).

          (5) Miscellaneous. So long as Tenant is in default of any obligation
     under this Lease, Tenant shall not be entitled to any refund of any amount
     from Landlord. If this Lease is terminated for any reason prior to the
     annual determination of Operating Cost Share Rent or Tax Share Rent, either
     party shall pay the full amount due to the other within fifteen (15) days
     after Landlord's notice to Tenant of the amount when it is determined.
     Landlord may commingle any payments made with respect to Operating Cost
     Share Rent or Tax Share Rent, without payment of interest.

     3. PREPARATION AND CONDITION OF PREMISES; POSSESSION AND SURRENDER OF
PREMISES.

     A. Condition of Premises. Except to the extent of the Tenant Improvements
item on the Schedule, Landlord is leasing the Premises to Tenant absolutely "as
is", without any obligation to alter, remodel, improve, repair or decorate any
part of the Premises. Landlord expressly disclaims any warranty or
representation, express or implied, with respect to the

                                       -8-

<PAGE>

Project or any portion thereof, including, without limitation, any warranty or
representation as to fitness, condition, the existence of any defect, patent or
latent, merchantability, quality or durability.

     B. Tenant's Possession. Tenant's taking possession of any portion of the
Premises shall be conclusive evidence that the Premises was in good order,
repair and condition. If Landlord authorizes Tenant to take possession of any
part of the Premises prior to the Commencement Date for purposes of doing
business, all terms of this Lease shall apply to such pre-Term possession,
including Base Rent at the rate set forth for the First Lease Year in the
Schedule prorated for any partial month.

     C. Maintenance. Throughout the Term, Tenant shall maintain the Premises in
good order, repair and condition, loss or damage caused by the elements,
ordinary wear, and fire and other casualty excepted, and at the termination of
this Lease, or Tenant's right to possession, Tenant shall return the Premises to
Landlord in broom-clean, safe, neat and sanitary condition. To the extent Tenant
fails to perform either obligation, Landlord may, but need not, restore the
Premises to such condition and Tenant shall pay the cost thereof.

     4. PROJECT SERVICES.

     Landlord shall furnish services as follows:

     A. Heating and Air Conditioning. During the normal business hours of 8:00
a.m. to 6:00 p.m., Monday through Friday, and 9:00 a.m. to 1:00 p.m. on
Saturday, Landlord shall furnish heating and air conditioning to provide a
comfortable temperature, in Landlord's judgment, for normal business operations,
except to the extent Tenant installs equipment which adversely affects the
temperature maintained by the air conditioning system. If Tenant installs such
equipment, Landlord may install supplementary air conditioning units in the
Premises, and Tenant shall pay to Landlord upon demand as Additional Rent the
cost of installation, operation and maintenance thereof.

     Landlord shall furnish heating and air conditioning after business hours if
Tenant provides Landlord reasonable prior notice, and pays Landlord all then
current charges for such additional heating or air conditioning (Landlord's
current charge for after business hours additional heating or air conditioning
is $25 per hour).

     B. Elevators. Landlord shall provide passenger elevator service during
normal business hours to Tenant in common with Landlord and all other tenants.
Landlord shall provide limited passenger service at other times, except in case
of an emergency.

     C. Electricity. Landlord shall provide sufficient electricity to the common
areas of the Project. Tenant shall pay for all water, gas, heat, light, power,
telephone and other utilities and services specially or exclusively supplied
and/or metered exclusively to the Premises or to Tenant, together with any taxes
thereon. Tenant shall not install or operate in the Premises any electrically
operated equipment or other machinery, other than business machines and
equipment normally employed for general office use which do not require high
electricity consumption for operation, without obtaining the prior written
consent of Landlord.

                                       -9-

<PAGE>

     D. Water. Landlord shall furnish hot and cold tap water for drinking and
toilet purposes. Tenant shall pay Landlord for water furnished for any other
purpose as Additional Rent at rates fixed by Landlord. Tenant shall not permit
water to be wasted.

     E. Janitorial Service. Landlord shall furnish janitorial service as
generally provided to other tenants in the Project.

     F. Interruption of Services. If any of the equipment or machinery of the
Buildings cease to function properly for any cause Landlord shall use reasonable
diligence to repair the same promptly. Landlord's inability to furnish, to any
extent, the Project services set forth in this Section 4, or any cessation
thereof resulting from any causes, including any entry for repairs pursuant to
this Lease, and any renovation, redecoration or rehabilitation of any area of
the Project shall not render Landlord liable for damages to either person or
property or for interruption or loss to Tenant's business, nor be construed as
an eviction of Tenant, nor work an abatement of any portion of rent, nor relieve
Tenant from fulfillment of any covenant or agreement hereof. However, in the
event that an interruption of the Project services set forth in this Section 4
is within Landlord's reasonable control and such interruption causes the
Premises to be untenantable for a period of at least ten (10) consecutive
business days, monthly Rent shall be abated proportionately.

     G. Parking. During the Term, Tenant and its employees shall be entitled to
use within the Project's parking area (excluding, however, those areas thereof
designated by Landlord from time to time for the exclusive use of certain
occupants of the Project or for no parking) an aggregate of thirty (30) parking
stalls free for the initial term of the Lease. Tenant may elect, by providing
written notice to Landlord prior to the Commencement Date, to rent up to a
maximum of five (5) reserved parking stalls at the rate of $55 per month, per
stall, which amount shall be payable to Landlord as Parking Rent as provided in
Section 2(A)(5) hereof; provided however, that the number of parking spaces
available to Tenant on an unreserved basis shall decrease by 1 parking stall for
each reserved parking stall that Tenant rents, so that the total number of
parking stalls available to Tenant on a reserved and unreserved basis shall not
exceed thirty (30) parking stalls. Landlord reserves the right to designate
reserved parking stalls for other occupants of the Project over any part of the
Project's parking area.

     5. ALTERATIONS AND REPAIRS.

     A. Landlord's Consent and Conditions.

     Tenant shall not make any improvements or alterations to the Premises (the
"Work") without in each instance submitting plans and specifications for the
Work to Landlord and obtaining Landlord's prior written consent unless (a) the
cost thereof is less than $5,000.00, (b) such Work does not impact the base
structural components or systems of the Buildings, (c) such Work will not impact
any other tenant's premises, and (d) such Work is not visible from outside the
Premises. Tenant shall pay Landlord's standard charge for review of the plans
and all other items submitted by Tenant. Landlord will be deemed to be acting
reasonably in withholding its consent for any Work which (a) impacts the base
structural components or systems of the Buildings, (b) impacts any other
tenant's premises, or (c) is visible from outside the Premises.

                                      -10-

<PAGE>

     Tenant shall reimburse Landlord for actual costs incurred for review of the
plans and all other items submitted by Tenant. Tenant shall pay for the cost of
all Work. All Work shall become the property of Landlord upon its installation,
except for Tenant's trade fixtures and for items which Landlord requires Tenant
to remove at Tenant's cost at the termination of the Lease pursuant to Section
5E.

     The following requirements shall apply to all Work:

          (1) Prior to commencement, Tenant shall furnish to Landlord building
     permits, certificates of insurance satisfactory to Landlord (including,
     without limitation, certificates evidencing the insurance Tenant, its
     contractors and subcontractors are required to maintain under Section
     8(C)), and, at Landlord's request, security for payment of all costs.

          (2) Tenant shall perform all Work so as to maintain peace and harmony
     among other contractors serving the Project and shall avoid interference
     with other work to be performed or services to be rendered in the Project.

          (3) The Work shall be performed in a good and workmanlike manner,
     meeting the standard for construction and quality of materials in the
     Buildings, and shall comply with all insurance requirements and all
     applicable governmental laws, ordinances and regulations
     ("Governmental Requirements").

          (4) Tenant shall perform all Work so as to minimize or prevent
     disruption to other tenants, and Tenant shall comply with all reasonable
     requests of Landlord in response to complaints from other tenants.

          (5) Tenant shall perform all Work in compliance with any of Landlord's
     reasonable policies and procedures for construction projects in effect at
     the time the Work is performed.

          (6) Tenant shall permit Landlord to supervise all Work. Landlord may
     charge a supervisory fee not to exceed fifteen percent (15%) of labor,
     material, and all other costs of the Work, if Landlord's employees or
     contractors perform the Work.

          (7) Upon completion, Tenant shall furnish Landlord with contractor's
     affidavits and full and final statutory waivers of liens, as-built plans
     and specifications, and receipted bills covering all labor and materials,
     and all other close-out documentation reasonably required by Landlord.

     B. Damage to Systems. If any part of the mechanical, electrical or other
systems in the Premises shall be damaged, Tenant shall promptly notify Landlord,
and Landlord shall repair such damage. Landlord may also at any reasonable time
make any repairs or alterations which Landlord deems necessary for the safety or
protection of the Project, or which Landlord is required to make by any court or
pursuant to any Governmental Requirement. Tenant shall at its expense make all
other repairs necessary to keep the Premises, and Tenant's fixtures and personal
property, in good order, condition and repair; to the extent Tenant fails to do
so, Landlord may make such repairs itself. The cost of any repairs made by
Landlord on account of Tenant's

                                      -11-

<PAGE>

default, or on account of the misuse or neglect by Tenant or its invitees,
contractors or agents anywhere in the Project, shall become Additional Rent
payable by Tenant on demand.

     C. No Liens. Tenant has no authority to cause or permit any lien or
encumbrance of any kind to affect Landlord's interest in the Project; any such
lien or encumbrance shall attach to Tenant's interest only. If any mechanic's
lien shall be filed or claim of lien made for work or materials furnished to
Tenant, then Tenant shall at its expense within ten (10) days thereafter either
discharge or contest the lien or claim. If Tenant contests the lien or claim,
then Tenant shall (i) within such ten (10) day period, provide Landlord adequate
security for the lien or claim, (ii) contest the lien or claim in good faith by
appropriate proceedings that operate to stay its enforcement, and (iii) pay
promptly any final adverse judgment entered in any such proceeding. If Tenant
does not comply with these requirements, Landlord may discharge the lien or
claim, and the amount paid, as well as attorney's fees and other expenses
incurred by Landlord, shall become Additional Rent payable by Tenant on demand.
Nothing contained in this Lease shall constitute any consent by Landlord to
subject Landlord's estate to liability under any mechanics' or other lien law.
Tenant shall give Landlord adequate opportunity, and Landlord shall have the
right at all times, to post such notices of nonresponsibility as may be allowed
under California law.

     D. Ownership of Improvements. All Work as defined in this Section 5,
partitions, hardware, equipment, machinery and all other improvements and all
fixtures except trade fixtures, constructed in the Premises by either Landlord
or Tenant, (i) shall become Landlord's property upon installation without
compensation to Tenant, unless Landlord consents otherwise in writing, and (ii)
shall at Landlord's option either (a) be surrendered to Landlord with the
Premises at the termination of the Lease or of Tenant's right to possession, or
(b) be removed in accordance with Subsection 5E below (unless Landlord at the
time it gives its consent to the performance of such construction expressly
waives in writing the right to require such removal).

     E. Removal at Termination. Upon the termination of this Lease or Tenant's
right of possession Tenant shall remove from the Project its trade fixtures,
furniture, moveable equipment and other personal property, any improvements
which Landlord elects shall be removed by Tenant pursuant to Section 5D, and any
improvements to any portion of the Project other than the Premises. If Tenant
does not timely remove such property, then Tenant shall be conclusively presumed
to have, at Landlord's election (i) conveyed such property to Landlord without
compensation or (ii) abandoned such property, and Landlord may dispose of or
store any part thereof in any manner at Tenant's sole cost, without waiving
Landlord's right to claim from Tenant all expenses arising out of Tenant's
failure to remove the property, and without liability to Tenant or any other
person. Landlord shall have no duty to be a bailee of any such personal
property. If Landlord elects abandonment, Tenant shall pay to Landlord, upon
demand, any expenses incurred for disposition. Tenant expressly releases
Landlord of and from any and all claims and liability for damage to or
destruction or loss of property left by Tenant upon the Premises at the
expiration or other termination of this Lease and, to the extent permitted by
then applicable law, Tenant shall protect, indemnify, defend and hold Landlord
harmless from and against any and all claims and liability with respect thereto.

     F. Landlord's Work. Landlord shall have the right at any time to change the
arrangement and location of all entrances, passageways, doors, doorways,
corridors, stairs, toilets

                                      -12-

<PAGE>

and other public parts of the Project and, upon giving Tenant reasonable notice
thereof, to change any name, number or designation by which the Premises or the
Project is commonly known.

     6. USE OF PREMISES. Tenant shall use the Premises only for the Permitted
Use and for no other purpose. Tenant shall not allow any use of the Premises
which will negatively affect the cost of coverage of Landlord's insurance on the
Project. Tenant shall not allow any inflammable or explosive liquids or
materials to be kept on the Premises. Tenant shall not allow any use of the
Premises which would cause the value or utility of any part of the Premises to
diminish or would interfere with any other Tenant or with the operation of the
Project by Landlord. Tenant shall not cause or permit any nuisance or waste upon
the Premises, or allow any offensive noise or odor in or around the Premises or
in any way obstruct or interfere with the rights of other tenants or occupants
of the Project.

     Tenant acknowledges that the Americans With Disabilities Act of 1990 (as
amended and as supplemented by further laws from time to time, the "ADA")
imposes certain requirements upon the owners, lessees and operators of
commercial facilities and places of public accommodation, including, without
limitation, prohibitions on discrimination against any individual on the basis
of disability. Notwithstanding any other provision of this Lease, Tenant agrees,
at Tenant's expense, to take all proper and necessary action to cause the
Premises, any repairs, replacements, alterations and improvements thereto to be
maintained, used and occupied in compliance with the ADA requirements, whether
or not those requirements are based upon the Tenant's use of the Premises and,
further, to otherwise assume all responsibility to ensure the Premises'
continued compliance with all provisions of the ADA throughout the Term. Tenant
shall, at its expense, make any alterations or modifications, with or without
the Premises, to bring Tenant's use and occupancy of the Premises into
compliance with the ADA. Tenant shall pay, as additional rent, its proportional
share of expenses incurred by Landlord in bringing common areas of the Project
into compliance with provisions of the ADA. The Premises shall not be used as a
"place of public accommodation" under the ADA or similar laws, regulations,
statutes and/or ordinances; provided, that if any governmental authority shall
deem the Premises to be a "place of public accommodation" as a result of
Tenant's use, Tenant shall either modify its use to cause such authority to
rescind its designation or be responsible for any alterations, structural or
otherwise, required to be made to the Project or the Premises under such laws.

     7. GOVERNMENTAL REQUIREMENTS AND PROJECT RULES. Tenant shall comply with
all Governmental Requirements applying to its use of the Premises. Tenant shall
also comply with all reasonable rules established for the Project, including,
without limitation, the parking area, from time to time by Landlord. The present
rules and regulations are contained in Appendix B. Failure by another tenant to
comply with the rules or failure by Landlord to enforce them shall not relieve
Tenant of its obligation to comply with the rules or make Landlord responsible
to Tenant in any way. Landlord shall use reasonable efforts to apply the rules
and regulations uniformly with respect to Tenant and tenants in the Project
under leases containing rules and regulations similar to this Lease. In the
event of alterations and repairs performed by Tenant, Tenant shall comply with
the provisions of Section 5 of this Lease and also Landlord's reasonable
policies and procedures for construction projects as may be in effect from time
to time.

                                      -13-

<PAGE>

     8. WAIVER OF CLAIMS; INDEMNIFICATION; INSURANCE.

     A. Waiver of Claims. To the extent permitted by law, Tenant waives any
claims it may have against Landlord or its officers, directors, employees or
agents for business interruption or damage to property sustained by Tenant as
the result of any act or omission of Landlord.

     To the extent permitted by law, Landlord waives any claims it may have
against Tenant or its officers, directors, employees or agents for loss of rents
or damage to property sustained by Landlord as the result of any act or omission
of Tenant.

     B. Indemnification. Tenant shall indemnify, defend and hold harmless
Landlord and its officers, directors, employees and agents against any claim by
any third party for injury to any person or damage to or loss of any property
occurring in the Project and arising from any act or omission or negligence of
Tenant or any of Tenant's employees or agents. Tenant's obligations under this
section shall survive the termination of this Lease.

     Landlord shall indemnify, defend and hold harmless Tenant and its officers,
directors, employees and agents against any claim by any third party for injury
to any person or damage to or loss of any property occurring in the Project and
arising from any act or omission or negligence of Landlord or any of Landlord's
employees or agents. Landlord's obligations under this section shall survive the
termination of this Lease.

     C. Tenant's Insurance. Tenant shall maintain insurance as follows, with
such other terms, coverages and insurers, as Landlord shall reasonably require
from time to time:

          (1) Commercial General Liability Insurance, with (a) Contractual
     Liability including the indemnification provisions contained in this Lease,
     (b) a severability of interest endorsement, (c) limits of not less than Two
     Million Dollars ($2,000,000) combined single limit per occurrence and not
     less than Two Million Dollars ($2,000,000) in the aggregate for bodily
     injury, sickness or death, and property damage, and umbrella coverage of
     not less than Five Million Dollars ($5,000,000).

          (2) Property Insurance against "All Risks" of physical loss covering
     the replacement cost of all improvements, fixtures and personal property.
     Tenant waives all rights of subrogation, and Tenant's property insurance
     shall include a waiver of subrogation in favor of Landlord.

          (3) Workers' compensation or similar insurance in form and amounts
     required by law, and Employer's Liability with not less than the following
     limits:

          Each Accident                   $500,000
          Disease--Policy Limit           $500,000
          Disease--Each Employee          $500,000

          Such insurance shall contain a waiver of subrogation provision in
     favor of Landlord and its agents.

                                      -14-

<PAGE>

     Tenant's insurance shall be primary and not contributory to that carried by
Landlord, its agents, or mortgagee. Landlord, and if any, Landlord's building
manager or agent and ground lessor shall be named as additional insureds as
respects to insurance required of the Tenant in Section 8C(1). The company or
companies writing any insurance which Tenant is required to maintain under this
Lease, as well as the form of such insurance, shall at all times be subject to
Landlord's approval, and any such company shall be licensed to do business in
the state in which the Project is located. Such insurance companies shall have a
A.M. Best rating of A VI or better.

     Tenant shall cause any contractor of Tenant performing work on the Premises
to maintain insurance as follows, with such other terms, coverages and insurers,
as Landlord shall reasonably require from time to time:

          (1) Commercial General Liability Insurance, including 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, for each
     occurrence, of not less than One Million Dollars ($1,000,000) with respect
     to personal injury, death or property damage.

          (2) Workers' compensation or similar insurance in form and amounts
     required by law, and Employer's Liability with not less than the following
     limits:

          Each Accident                  $500,000
          Disease--Policy Limit          $500,000
          Disease--Each Employee         $500,000

          Such insurance shall contain a waiver of subrogation provision in
     favor of Landlord and its agents.

     Tenant's contractor's insurance shall be primary and not contributory to
that carried by Tenant, Landlord, their agents or mortgagees. Tenant and
Landlord, and if any, Landlord's building manager or agent, mortgagee or ground
lessor shall be named as additional insured on Tenant's contractor's insurance
policies.

     D. Insurance Certificates. Tenant shall deliver to Landlord certificates
evidencing all required insurance no later than five (5) days prior to the
Commencement Date and each renewal date. Each certificate will provide for
thirty (30) days prior written notice of cancellation to Landlord and Tenant.

     E. Landlord's Insurance. Landlord shall maintain "All-Risk" property
insurance at replacement cost, including loss of rents, on the Buildings, and
Commercial General Liability insurance policies covering the common areas of the
Project, each with such terms, coverages and conditions as are normally carried
by reasonably prudent owners of properties similar to the Project. With respect
to property insurance, Landlord and Tenant mutually waive all rights of
subrogation, and the respective "All-Risk" coverage property insurance policies
carried by Landlord and Tenant shall contain enforceable waiver of subrogation
endorsements.

                                      -15-

<PAGE>

     9. FIRE AND OTHER CASUALTY.

     A. Termination. If a fire or other casualty causes substantial damage to
the Building or the Premises, Landlord shall engage a registered architect to
certify within one (1) month of the casualty to both Landlord and Tenant the
amount of time needed to restore the Building and the Premises to tenantability,
using standard working methods. If the time needed exceeds twelve (12) months
from the beginning of the restoration, or two (2) months therefrom if the
restoration would begin during the last twelve (12) months of the Lease, then in
the case of the Premises, either Landlord or Tenant may terminate this lease,
and in the case of the Building, Landlord may terminate this Lease, by notice to
the other party within ten (10) days after the notifying party's receipt of the
architect's certificate. The termination shall be effective thirty (30) days
from the date of the notice and Rent shall be paid by Tenant to that date, with
an abatement for any portion of the space which has been untenantable after the
casualty.

     B. Restoration. If a casualty causes damage to the Building or the Premises
but this Lease is not terminated for any reason, then subject to the rights of
any mortgagees or ground lessors, Landlord shall obtain the applicable insurance
proceeds and diligently restore the Building and the Premises subject to current
Governmental Requirements. Tenant shall replace its damaged improvements,
personal property and fixtures. Rent shall be abated on a per diem basis during
the restoration for any portion of the Premises which is untenantable, except to
the extent that Tenant's negligence caused the casualty.

     10. EMINENT DOMAIN. If a part of the Project is taken by eminent domain or
deed in lieu thereof which is so substantial that the Premises cannot reasonably
be used by Tenant for the operation of its business, then either party may
terminate this Lease effective as of the date of the taking. If any substantial
portion of the Project is taken without affecting the Premises, then Landlord
may terminate this Lease as of the date of such taking. Rent shall abate from
the date of the taking in proportion to any part of the Premises taken. The
entire award for a taking of any kind shall be paid to Landlord, and Tenant
shall have no right to share in the award. All obligations accrued to the date
of the taking shall be performed by each party.

     11. RIGHTS RESERVED TO LANDLORD.

     Landlord may exercise at any time any of the following rights respecting
the operation of the Project without liability to the Tenant of any kind:

     A. Name. To change the name or street address of the Building or the suite
number(s) of the Premises.

     B. Signs. To install, remove and maintain any signs on the exterior and in
the interior of the Building, and to approve at its sole discretion, prior to
installation, any of Tenant's signs in the Premises visible from the common
areas or the exterior of the Building. Tenant shall be entitled to have its name
included in the Buildings' directories at no cost. Tenant may install an
identification sign, reasonably acceptable to Landlord, on or next to the
primary entry door of the Existing Premises and the Expansion Premises.

                                      -16-

<PAGE>

     C. Window Treatments. To approve, at its discretion, prior to installation,
any shades, blinds, ventilators or window treatments of any kind, as well as any
lighting within the Premises that may be visible from the exterior of the
Buildings or any interior common area.

     D. Keys. To retain and use at any time passkeys to enter the Premises or
any door within the Premises. Tenant shall not alter or add any lock or bolt.

     E. Access. To have access to inspect the Premises, and to perform its
obligations, or make repairs, alterations, additions or improvements, as
permitted by this Lease.

     F. Preparation for Reoccupancy. To decorate, remodel, repair, alter or
otherwise prepare the Premises for reoccupancy at any time after Tenant abandons
the Premises, without relieving Tenant of any obligation to pay Rent.

     G. Heavy Articles. To approve the weight, size, placement and time and
manner of movement within the Buildings of any safe, central filing system or
other heavy article of Tenant's property. Tenant shall move its property
entirely at its own risk.

     H. Show Premises. To show the Premises to prospective purchasers, tenants,
brokers, lenders, investors, rating agencies or others at any reasonable time,
provided that Landlord gives prior notice to Tenant and does not materially
interfere with Tenant's use of the Premises.

     I. Relocation of Tenant. To relocate the Tenant, upon one hundred twenty
(120) days' prior written notice, from all or part of the Premises (the "Old
Premises") to another area in the Project (the "new premises"), provided that:

          (1) the size of the new premises is at least equal to the size of the
     Old Premises;

          (2) Landlord pays the cost of moving the Tenant and improving the new
     premises to the standard of the Old Premises. Tenant shall cooperate with
     Landlord in all reasonable ways to facilitate the move, including
     supervising the movement of files or fragile equipment, designating new
     locations for furniture, equipment and new telephone and electrical
     outlets, and determining the color of paint in the new premises.

     J. Use of Lockbox. To designate a lockbox collection agent for collections
of amounts due Landlord. In that case, the date of payment of Rent or other sums
shall be the date of the agent's receipt of such payment or the date of actual
collection if payment is made in the form of a negotiable instrument thereafter
dishonored upon presentment. However, Landlord may reject any payment for all
purposes as of the date of receipt or actual collection by mailing to Tenant
within 21 days after such receipt or collection a check equal to the amount sent
by Tenant.

     K. Repairs and Alterations. To make repairs or alterations to the Project
and in doing so transport any required material through the Premises, to close
entrances, doors, corridors, elevators and other facilities in the Project, to
open any ceiling in the Premises, or to temporarily suspend services or use of
common areas in the Project. Landlord may perform any

                                      -17-

<PAGE>

such repairs or alterations during ordinary business hours, except that Tenant
may require any Work in the Premises to be done after business hours if Tenant
pays Landlord for overtime and any other expenses incurred. Landlord may do or
permit any work on any nearby building, land, street, alley or way.

     L. Landlord's Agents. If Tenant is in default under this Lease, possession
of Tenant's funds or negotiation of Tenant's negotiable instrument by any of
Landlord's agents shall not waive any breach by Tenant or any remedies of
Landlord under this Lease.

     M. Building Services. To install, use and maintain through the Premises,
pipes, conduits, wires and ducts serving the Buildings, provided that such
installation, use and maintenance does not unreasonably interfere with Tenant's
use of the Premises.

     N. Other Actions. To take any other action which Landlord deems reasonable
in connection with the operation, maintenance or preservation of the Project.

     12. TENANT'S DEFAULT.

     Any of the following shall constitute a default by Tenant:

     A. Rent Default. Tenant fails to pay any Rent when due;

     B. Assignment/Sublease or Hazardous Substances Default. Tenant defaults in
its obligations under Section 17 Assignment and Sublease or Section 28 Hazardous
Substances;

     C. Other Performance Default. Tenant fails to perform any other obligation
to Landlord under this Lease, and, in the case of only the first two (2) such
failures during the Term of this Lease, this failure continues for ten (10) days
after written notice from Landlord (provided, however, that any such notice
shall be in lieu of, and not in addition to, any notice required under Section
1161 et seq. of the California Code of Civil Procedure), except that if Tenant
begins to cure its failure within the ten (10) day period but cannot reasonably
complete its cure within such period, then, so long as Tenant continues to
diligently attempt to cure its failure, the ten (10) day period shall be
extended to sixty (60) days, or such lesser period as is reasonably necessary to
complete the cure;

     D. Credit Default. One of the following credit defaults occurs:

          (1) Tenant commences any proceeding under any law relating to
     bankruptcy, insolvency, reorganization or relief of debts, or seeks
     appointment of a receiver, trustee, custodian or other similar official for
     the Tenant or for any substantial part of its property, or any such
     proceeding is commenced against Tenant and either remains undismissed for a
     period of thirty days or results in the entry of an order for relief
     against Tenant which is not fully stayed within seven days after entry;

          (2) Tenant becomes insolvent or bankrupt, does not generally pay its
     debts as they become due, or admits in writing its inability to pay its
     debts, or makes a general assignment for the benefit of creditors;

                                      -18-

<PAGE>

       (3) Any third party obtains a levy or attachment under process of law
against Tenant's leasehold interest.

   E.  Vacation or Abandonment Default. Tenant vacates or abandons the Existing
Premises and/or the Expansion Premises.

   13. LANDLORD REMEDIES.

   A.  Termination of Lease or Possession. If Tenant defaults, Landlord may
elect by notice to Tenant either to terminate this Lease or to terminate
Tenant's possession of the Premises without terminating this Lease. In either
case, Tenant shall immediately vacate the Premises and deliver possession to
Landlord, and Landlord may repossess the Premises and may, at Tenant's sole
cost, remove any of Tenant's signs and any of its other property, without
relinquishing its right to receive Rent or any other right against Tenant.
Without limiting the generality of the foregoing, upon the termination of this
Lease or the termination of Tenant's right of possession, it shall be lawful for
the Landlord, without formal demand or notice of any kind, to re-enter the
Premises by summary dispossession proceedings or any other action or proceeding
authorized by law and to remove Tenant and all persons and property therefrom.

   B.  Lease Termination Damages. Except as otherwise provided in Section 13C,
if Tenant abandons the Premises prior to the end of the term hereof, or if
Tenant's right to possession is terminated by Landlord because of a default by
Tenant under this Lease, this Lease shall terminate. Upon such termination,
Landlord may recover from Tenant the following, as provided in Section 1951.2 of
the California Civil Code: (i) the worth at the time of award of the unpaid Rent
and other charges under this Lease that had been earned at the time of
termination; (ii) the worth at the time of award of the amount by which the
unpaid Rent and other charges under this Lease which would have been earned
after termination until the time of award exceeds the amount of such rental loss
that Tenant proves could have been reasonably avoided; (iii) the worth at the
time of award of the amount by which the unpaid Rent and other charges under
this Lease for the balance of the term of this Lease after the time of award
exceeds the amount of such rental loss that Tenant proves could have been
reasonably avoided; and (iv) any other amount necessary to compensate Landlord
for all the detriment proximately caused by Tenant's failure to perform its
obligations under this Lease or that in the ordinary course of things would be
likely to result therefrom. As used herein, the following terms are defined: (a)
The "worth at the time of award" of the amounts referred to in Sections (i) and
(ii) is computed by allowing interest at the lesser of 15% per annum or the
maximum lawful rate. The "worth at the time of award" of the amount referred to
in Section (iii) is computed by discounting such amount at the discount rate of
the Federal Reserve Bank of San Francisco at the time of award plus 1%.

   C.  Continuation of Lease. Even if Tenant has abandoned the Existing
Premises and/or the Expansion, this Lease shall continue in effect for so long
as Landlord does not terminate Tenant's right to possession, and Landlord may
enforce all its rights and remedies under this Lease, including the right to
recover rent as it becomes due. This remedy is intended to be the remedy
described in California Civil Code Section 1951.4, and the following provision
from such Civil Code Section is hereby repeated: "The Lessor has the remedy
described in California Civil Code Section 1951.4 (lessor may continue lease in
effect after lessee's breach and abandonment and recover rent as it becomes due,
if lessee has right to sublet or assign,

                                      -19-

<PAGE>

subject only to reasonable limitations)." Any such payments due Landlord shall
be made upon demand therefor from time to time and Tenant agrees that Landlord
may file suit to recover any sums falling due from time to time. Notwithstanding
any such reletting without termination, Landlord may at any time thereafter
elect in writing to terminate this Lease for such previous breach.

   D.  Possession Termination Damages. If Landlord terminates Tenant's right to
possession without terminating the Lease and Landlord takes possession of the
Premises itself, Landlord may relet any part of the Premises for such Rent, for
such time, and upon such terms as Landlord in its sole discretion shall
determine, without any obligation to do so prior to renting other vacant areas
in the Project. Any proceeds from reletting the Premises shall first be applied
to the expenses of reletting, including redecoration, repair, alteration,
advertising, brokerage, legal, and other reasonably necessary expenses. If the
reletting proceeds after payment of expenses are insufficient to pay the full
amount of Rent under this Lease, Tenant shall pay such deficiency to Landlord
monthly upon demand as it becomes due. Any excess proceeds shall be retained by
Landlord.

   E.  Landlord's Remedies Cumulative. All of Landlord's remedies under this
Lease shall be in addition to all other remedies Landlord may have at law or in
equity. Waiver by Landlord of any breach of any obligation by Tenant shall be
effective only if it is in writing, and shall not be deemed a waiver of any
other breach, or any subsequent breach of the same obligation. Landlord's
acceptance of payment by Tenant shall not constitute a waiver of any breach by
Tenant, and if the acceptance occurs after Landlord's notice to Tenant, or
termination of the Lease or of Tenant's right to possession, the acceptance
shall not affect such notice or termination. Acceptance of payment by Landlord
after commencement of a legal proceeding or final judgment shall not affect such
proceeding or judgment. Landlord may advance such monies and take such other
actions for Tenant's account as reasonably may be required to cure or mitigate
any default by Tenant. Tenant shall immediately reimburse Landlord for any such
advance, and such sums shall bear interest at the default interest rate until
paid.

   F.  WAIVER OF TRIAL BY JURY. EACH PARTY WAIVES TRIAL BY JURY IN THE EVENT OF
ANY LEGAL PROCEEDING BROUGHT BY THE OTHER IN CONNECTION WITH THIS LEASE. EACH
PARTY SHALL BRING ANY ACTION AGAINST THE OTHER IN CONNECTION WITH THIS LEASE IN
A FEDERAL OR STATE COURT LOCATED IN CALIFORNIA, CONSENTS TO THE JURISDICTION OF
SUCH COURTS, AND WAIVES ANY RIGHT TO HAVE ANY PROCEEDING TRANSFERRED FROM SUCH
COURTS ON THE GROUND OF IMPROPER VENUE OR INCONVENIENT FORUM.

   G.  Litigation Costs. The prevailing party shall be entitled to have its
reasonable attorneys' fees and other costs in enforcing this Lease paid by the
other party, whether or not suit is filed.

   14. SURRENDER. Upon termination of this Lease or Tenant's right to
possession, Tenant shall return the Premises to Landlord in good order and
condition, ordinary wear and casualty damage excepted. If Landlord requires
Tenant to remove any alterations, then Tenant

                                      -20-

<PAGE>

shall remove the alterations in a good and workmanlike manner and restore the
Premises to its condition prior to their installation.

   15. HOLDOVER. If Tenant retains possession of any part of the Premises
after the Term, Tenant shall become a month-to-month tenant for the entire
Premises upon all of the terms of this Lease as might be applicable to such
month-to-month tenancy, except that Tenant shall pay all of Base Rent, Operating
Cost Share Rent and Tax Share Rent at double the rate in effect immediately
prior to such holdover, computed on a monthly basis for each full or partial
month Tenant remains in possession. Tenant shall also pay Landlord all of
Landlord's direct and consequential damages. No acceptance of Rent or other
payments by Landlord under these holdover provisions shall operate as a waiver
of Landlord's right to regain possession or any other of Landlord's remedies.

   16. SUBORDINATION TO GROUND LEASES AND MORTGAGES.

   A.  Subordination. This Lease shall be subordinate to any present or future
ground lease or mortgage respecting the Project, and any amendments to such
ground lease or mortgage, at the election of the ground lessor or mortgagee as
the case may be, effected by notice to Tenant in the manner provided in this
Lease. The subordination shall be effective upon such notice, but at the request
of Landlord or ground lessor or mortgagee, Tenant shall within ten (10) days of
the request, execute and deliver to the requesting party any reasonable
documents provided to evidence the subordination.

   B.  Termination of Ground Lease or Foreclosure of Mortgage. If any ground
lease is terminated or mortgage foreclosed or deed in lieu of foreclosure given
and the ground lessor, mortgagee, or purchaser at a foreclosure sale shall
thereby become the owner of the Project, Tenant shall attorn to such ground
lessor or mortgagee or purchaser without any deduction or setoff by Tenant, and
this Lease shall continue in effect as a direct lease between Tenant and such
ground lessor, mortgagee or purchaser. The ground lessor or mortgagee or
purchaser shall be liable as Landlord only during the time such ground lessor or
mortgagee or purchaser is the owner of the Project. At the request of Landlord,
ground lessor or mortgagee, Tenant shall execute and deliver within ten (10)
days of the request any document furnished by the requesting party to evidence
Tenant's agreement to attorn.

   C.  Security Deposit. Any ground lessor or mortgagee shall be responsible
for the return of any security deposit by Tenant only to the extent the security
deposit is received by such ground lessor or mortgagee.

   D.  Notice and Right to Cure. The Project is subject to any ground lease and
mortgage identified with name and address of ground lessor or mortgagee in
Appendix D to this Lease (as the same may be amended from time to time by
written notice to Tenant). Tenant agrees to send by registered or certified mail
to any ground lessor or mortgagee identified either in such Appendix or in any
later notice from Landlord to Tenant a copy of any notice of default sent by
Tenant to Landlord. If Landlord fails to cure such default within the required
time period under this Lease, but ground lessor or mortgagee begins to cure
within ten (10) days after such period and proceeds diligently to complete such
cure, then ground lessor or mortgagee shall have such additional time as is
necessary to complete such cure, including any time necessary to

                                      -21-

<PAGE>

obtain possession if possession is necessary to cure, and Tenant shall not begin
to enforce its remedies so long as the cure is being diligently pursued.

   E.  Definitions. As used in this Section 16, "mortgage" shall include "trust
deed" and "deed of trust" and "mortgagee" shall include "trustee", "mortgagee"
shall include the mortgagee of any ground lessee, and "ground lessor",
"mortgagee", and "purchaser at a foreclosure sale" shall include, in each case,
all of its successors and assigns, however remote.

   17. ASSIGNMENT AND SUBLEASE.

   A.  In General. Other than a Permitted Assignment (hereinafter defined)
Tenant shall not, without the prior consent of Landlord in each case, (i) make
or allow any assignment or transfer, by operation of law or otherwise, of any
part of Tenant's interest in this Lease, (ii) grant or allow any lien or
encumbrance, by operation of law or otherwise, upon any part of Tenant's
interest in this Lease, (iii) sublet any part of the Premises, or (iv) permit
anyone other than Tenant and its employees to occupy any part of the Premises.
Tenant shall remain primarily liable for all of its obligations under this
Lease, notwithstanding any assignment or transfer. No consent granted by
Landlord shall be deemed to be a consent to any subsequent assignment or
transfer, lien or encumbrance, sublease or occupancy. Tenant shall pay all of
Landlord's attorneys' fees and other expenses incurred in connection with any
consent requested by Tenant or in reviewing any proposed assignment or
subletting. Any assignment or transfer, grant of lien or encumbrance, or
sublease or occupancy without Landlord's prior written consent shall be void. If
Tenant shall assign this Lease or sublet the Premises in its entirety any rights
of Tenant to renew this Lease, extend the Term or to lease additional space in
the Project shall be extinguished thereby and will not be transferred to the
assignee or subtenant, all such rights being personal to the Tenant named
herein.

   B.  Landlord's Consent. Landlord will not unreasonably withhold its consent
to any proposed assignment or subletting. It shall be reasonable for Landlord to
withhold its consent to any assignment or sublease if (i) Tenant is in default
under this Lease, (ii) the proposed assignee or sublessee is a tenant in the
Project or an affiliate of such a tenant or a party that Landlord has identified
as a prospective tenant in the Project, (iii) the financial responsibility,
nature of business, and character of the proposed assignee or subtenant are not
all reasonably satisfactory to Landlord, (iv) in the reasonable judgment of
Landlord the purpose for which the assignee or subtenant intends to use the
Premises (or a portion thereof) is not in keeping with Landlord's standards for
the Project or are in violation of the terms of this Lease or any other leases
in the Project, (v) the proposed assignee or subtenant is a government entity,
or (vi) the proposed assignment is for less than the entire Premises or for less
than the remaining Term of the Lease. The foregoing shall not exclude any other
reasonable basis for Landlord to withhold its consent.

   C.  Procedure. Tenant shall notify Landlord of any proposed assignment or
sublease at least thirty (30) days prior to its proposed effective date. The
notice shall include the name and address of the proposed assignee or subtenant,
its corporate affiliates in the case of a corporation and its partners in a case
of a partnership, an execution copy of the proposed assignment or sublease, and
sufficient information to permit Landlord to determine the financial
responsibility and character of the proposed assignee or subtenant. As a
condition to any effective assignment of this Lease, the assignee shall execute
and deliver in form satisfactory to

                                      -22-

<PAGE>

Landlord at least fifteen (15) days prior to the effective date of the
assignment, an assumption of all of the obligations of Tenant under this Lease.
As a condition to any effective sublease, subtenant shall execute and deliver in
form satisfactory to Landlord at least fifteen (15) days prior to the effective
date of the sublease, an agreement to comply with all of Tenant's obligations
under this Lease, and at Landlord's option, an agreement (except for the
economic obligations which subtenant will undertake directly to Tenant) to
attorn to Landlord under the terms of the sublease in the event this Lease
terminates before the sublease expires.

   D.  Change of Management or Ownership. Any transfer of the direct or
indirect power to affect the management or policies of Tenant or direct or
indirect change in 51% or more in the aggregate of the ownership interest in
Tenant shall constitute an assignment of this Lease.

   E.  Excess Payments. If Tenant shall assign this Lease or sublet any part of
the Premises for consideration in excess of the pro-rata portion of Rent
applicable to the space subject to the assignment or sublet, then Tenant shall
pay to Landlord as Additional Rent 50% of any such excess immediately upon
receipt.

   F.  Recapture. Landlord may, by giving written notice to Tenant within
thirty (30) days after receipt of Tenant's notice of assignment or subletting,
terminate this Lease with respect to the space described in Tenant's notice, as
of the effective date of the proposed assignment or sublease and all obligations
under this Lease as to such space shall expire except as to any obligations that
expressly survive any termination of this Lease.

   G.  Permitted Assignment. Notwithstanding the foregoing, Landlord's consent
to an assignment of this Lease to any entity controlling, controlled by or under
common control with Tenant (a "Permitted Assignment") shall not be required,
provided that Landlord shall have the right to approve the form of any such
Permitted Assignment and Tenant shall have delivered to Landlord 30 days prior
written notice of such Permitted Assignment. Tenant shall remain primarily
liable for all of its obligations under this Lease, notwithstanding any
Permitted Assignment.

   18. CONVEYANCE BY LANDLORD. If Landlord shall at any time transfer its
interest in the Project or this Lease, Landlord shall be released of any
obligations occurring after such transfer, except the obligation to return to
Tenant any security deposit not delivered to its transferee, and Tenant shall
look solely to Landlord's successors for performance of such obligations.
Subject to the provisions of Section 16, this Lease shall not be affected by any
such transfer.

   19. ESTOPPEL CERTIFICATE. Each party shall, within ten (10) days of
receiving a request from the other party, execute, acknowledge in recordable
form, and deliver to the other party or its designee a certificate stating,
subject to a specific statement of any applicable exceptions, that the Lease as
amended to date is in full force and effect, that the Tenant is paying Rent and
other charges on a current basis, and that to the best of the knowledge of the
certifying party, the other party has committed no uncured defaults and
has no offsets or claims. The certifying party may also be required to state the
date of commencement of payment of Rent, the Commencement Date, the Termination
Date, the Base Rent, the current Operating

                                      -23-

<PAGE>

Cost Share Rent and Tax Share Rent estimates, the status of any improvements
required to be completed by Landlord, the amount of any security deposit, and
such other matters as may be reasonably requested. Failure to deliver such
statement within the time required shall be conclusive evidence against the
non-certifying party that this Lease, with any amendments identified by the
requesting party, is in full force and effect, that there are no uncured
defaults by the requesting party, that not more than one month's Rent has been
paid in advance, that the non-certifying party has not paid any security
deposit, and that the non-certifying party has no claims or offsets against the
requesting party.

   20. SECURITY DEPOSIT. Tenant shall deposit with Landlord on the date of
this Lease, security for the performance of all of its obligations in the amount
set forth on the Schedule. Landlord hereby acknowledges receipt of the initial
security deposit for the Existing Premises in the amount of $4,259.15. If Tenant
defaults under this Lease, Landlord may use any part of the Security Deposit to
make any defaulted payment, to pay for Landlord's cure of any defaulted
obligation, or to compensate Landlord for any loss or damage resulting from any
default. To the extent any portion of the deposit is used, Tenant shall within
five (5) days after demand from Landlord restore the deposit to its full amount.
Landlord may keep the Security Deposit in its general funds and shall not be
required to pay interest to Tenant on the deposit amount. If Tenant shall
perform all of its obligations under this Lease and return the Premises to
Landlord at the end of the Term, Landlord shall return all of the remaining
Security Deposit to Tenant not later than thirty (30) days after the delivery of
possession of the Premises to Landlord. The Security Deposit shall not serve as
an advance payment of Rent or a measure of Landlord's damages for any default
under this Lease. If the Base Rent shall, from time to time, increase during the
term of this Lease (as extended from time to time), Tenant shall, upon
Landlord's election, deposit with Landlord additional money as a Security
Deposit so that the total amount of Security Deposit held by Landlord shall at
all times bear the same proportion to the then current Base Rent as the initial
Security Deposit bears to the initial Base Rent set forth in the Schedule.

   If Landlord transfers its interest in the Project or this Lease, Landlord
shall either (a) transfer the portion of the Security Deposit then held by
Landlord to its transferee or (b) return to Tenant the portion of the Security
Deposit then held by Landlord and remaining after the deductions permitted
herein. Upon such transfer to such transferee or the return of the Security
Deposit to Tenant, Landlord shall have no further obligation with respect to the
Security Deposit, and Tenant's right to the return of the Security Deposit shall
apply solely against Landlord's transferee.

   Notwithstanding anything contained herein to the contrary, provided Tenant
is not in default of any of the terms of the Lease, Landlord shall return to
Tenant $19,596.20 from the Security Deposit on each anniversary of the
Commencement Date.

   21. FORCE MAJEURE. Landlord shall not be in default under this Lease to the
extent Landlord is unable to perform any of its obligations on account of any
strike or labor problem, energy shortage, governmental pre-emption or
prescription, flood, earthquake, national emergency, or any other cause of any
kind beyond the reasonable control of Landlord ("Force Majeure").

                                      -24-

<PAGE>

   22. TENANT'S PERSONAL PROPERTY AND FIXTURES. Tenant hereby grants to
Landlord all of its personal property and fixtures now or hereafter located
within the Premises as security for performance of all of Tenant's obligations
under this Lease. Tenant may replace such personal property and fixtures with
items of equal or better quality, but shall not otherwise remove them from the
Premises without the consent of Landlord until all of the obligations of Tenant
under this Lease have been performed. This Lease constitutes a security
agreement creating a security interest in such property in favor of Landlord,
subject only to the liens of existing creditors, and Landlord may at any time
file this Lease as a financing statement under the Uniform Commercial Code of
the state in which the Project is located.

   23. NOTICES. All notices, consents, approvals and similar communications to
be given by one party to the other under this Lease (including, without
limitation, any notice required by law to be given by Landlord to Tenant as a
condition to the filing of an action alleging an unlawful detainer of the
Premises and any three (3) day notice under Section 1161(2) or (3) of the
California Code of Civil Procedure), shall be given in writing, mailed or
personally delivered as follows:

   A.  Landlord. To Landlord as follows:

       Square 24 Associates L.P.
       c/o CarrAmerica Realty Corporation
       3150 South Bristol Street, Suite 350
       Costa Mesa, California  92626
       Attn:  Managing Director

       with a copy to:

       CarrAmerica Realty Corporation
       1850 K Street, N.W.
       Suite 500
       Washington, D.C.  20006
       Attn:  Lease Administration

or to such other person at such other address as Landlord may designate by
notice to Tenant.

   B.  Tenant. To Tenant as follows:

       Direct III Marketing, Inc.
       12760 High Bluff Drive, Suite 210
       San Diego, California  92130
       Attn:  Douglas L. Feist

or to such other person at such other address as Tenant may designate by notice
to Landlord.

   Mailed notices shall be sent by United States certified or registered mail,
or by a reputable national overnight courier service, postage prepaid. Mailed
notices shall be deemed to have been given on the earlier of actual delivery or
three (3) business days after posting in the

                                      -25-

<PAGE>

United States mail in the case of registered or certified mail, and one business
day in the case of overnight courier.

   24. QUIET POSSESSION. Subject to the provisions of Section 16, so long as
Tenant shall perform all of its obligations under this Lease, Tenant shall enjoy
peaceful and quiet possession of the Premises against any party claiming through
the Landlord.

   25. REAL ESTATE BROKER. Tenant represents to Landlord that Tenant has not
dealt with any real estate broker with respect to this Lease except for any
broker(s) listed in the Schedule, and no other broker is in any way entitled to
any broker's fee or other payment in connection with this Lease. Tenant shall
indemnify and defend Landlord against any claims by any other broker or third
party for any payment of any kind in connection with this Lease.

   26. MISCELLANEOUS.

   A.  Successors and Assigns. Subject to the limits on Tenant's assignment
contained in Section 17, the provisions of this Lease shall be binding upon and
inure to the benefit of all successors and assigns of Landlord and Tenant.

   B.  Date Payments Are Due. Except for payments to be made by Tenant under
this Lease which are due upon demand, Tenant shall pay to Landlord any amount
for which Landlord renders a statement of account within ten days of Tenant's
receipt of Landlord's statement.

   C.  Meaning of "Landlord", "Re-Entry, "including", "Affiliate" and
"Control". The term "Landlord" means only the owner of the Project and the
lessor's interest in this Lease from time to time. The words "re-entry" and
"re-enter" are not restricted to their technical legal meaning. The words
"including" and similar words shall mean "without limitation." The word
"affiliate" shall mean a person or entity controlling, controlled by or under
common control with the applicable entity. "Control" shall mean the power
directly or indirectly, by contract or otherwise, to direct the management and
policies of the applicable entity.

   D.  Time of the Essence. Time is of the essence of each provision of this
Lease.

   E.  No Option. This document shall not be effective for any purpose until it
has been executed and delivered by both parties; execution and delivery by one
party shall not create any option or other right in the other party.

   F.  Severability. The unenforceability of any provision of this Lease shall
not affect any other provision.

   G.  Governing Law. This Lease shall be governed in all respects by the laws
of the state in which the Project is located, without regard to the principles
of conflicts of laws.

   H.  Lease Modification. Tenant agrees to modify this Lease in any way
requested by a mortgagee which does not cause increased expense to Tenant or
otherwise materially adversely affect Tenant's interests under this Lease.

                                      -26-

<PAGE>

   I.  No Oral Modification. No modification of this Lease shall be effective
unless it is a written modification signed by both parties.

   J.  Landlord's Right to Cure. If Landlord breaches any of its obligations
under this Lease, Tenant shall notify Landlord in writing and shall take no
action respecting such breach so long as Landlord immediately begins to cure the
breach and diligently pursues such cure to its completion. Landlord may cure any
default by Tenant; any expenses incurred shall become Additional Rent due from
Tenant on demand by Landlord.

   K.  Captions. The captions used in this Lease shall have no effect on the
construction of this Lease.

   L.  Authority. Landlord and Tenant each represents to the other that it has
full power and authority to execute and perform this Lease.

   M.  Landlord's Enforcement of Remedies. Landlord may enforce any of its
remedies under this Lease either in its own name or through an agent.

   N.  Entire Agreement. This Lease, together with all Appendices, constitutes
the entire agreement between the parties. No representations or agreements of
any kind have been made by either party which are not contained in this Lease.

   O.  Landlord's Title. Landlord's title shall always be paramount to the
interest of the Tenant, and nothing in this Lease shall empower Tenant to do
anything which might in any way impair Landlord's title.

   P.  Light and Air Rights. Landlord does not grant in this Lease any rights
to light and air in connection with Project. Landlord reserves to itself, the
Land, the Building below the improved floor of each floor of the Premises, the
Building above the ceiling of each floor of the Premises, the exterior of the
Premises and the areas on the same floor outside the Premises, along with the
areas within the Premises required for the installation and repair of utility
lines and other items required to serve other tenants of the Project.

   Q.  Singular and Plural. Wherever appropriate in this Lease, a singular term
shall be construed to mean the plural where necessary, and a plural term the
singular. For example, if at any time two parties shall constitute Landlord or
Tenant, then the relevant term shall refer to both parties together.

   R.  No Recording by Tenant. Tenant shall not record in any public records
any memorandum or any portion of this Lease.

   S.  Exclusivity. Landlord does not grant to Tenant in this Lease any
exclusive right except the right to occupy its Premises.

   T.  No Construction Against Drafting Party. The rule of construction that
ambiguities are resolved against the drafting party shall not apply to this
Lease.

                                      -27-

<PAGE>

   U.  Survival. All obligations of Landlord and Tenant under this Lease shall
survive the termination of this Lease.

   V.  Rent Not Based on Income. No rent or other payment in respect of the
Premises shall be based in any way upon net income or profits from the Premises.
Tenant may not enter into or permit any sublease or license or other agreement
in connection with the Premises which provides for a rental or other payment
based on net income or profit.

   W.  Building Manager and Service Providers. Landlord may perform any of its
obligations under this Lease through its employees or third parties hired by the
Landlord.

   X.  Late Charge and Interest on Late Payments. Without limiting the
provisions of Section 12A, if Tenant fails to pay any installment of Rent or
other charge to be paid by Tenant pursuant to this Lease within five (5)
business days after the same becomes due and payable, then Tenant shall pay a
late charge equal to the greater of five percent (5%) of the amount of such
payment or $250. In addition, interest shall be paid by Tenant to Landlord on
any late payments of Rent from the date due until paid at the rate provided in
Section 2D(2). Such late charge and interest shall constitute additional Rent
due and payable by Tenant to Landlord upon the date of payment of the delinquent
payment referenced above.

   27. UNRELATED BUSINESS INCOME. If Landlord is advised by its counsel at any
time that any part of the payments by Tenant to Landlord under this Lease may be
characterized as unrelated business income under the United States Internal
Revenue Code and its regulations, then Tenant shall enter into any amendment
proposed by Landlord to avoid such income, so long as the amendment does not
require Tenant to make more payments or accept fewer services from Landlord,
than this Lease provides.

   28. HAZARDOUS SUBSTANCES.

   A.  Tenant shall not cause or permit any Hazardous Substances to be brought
upon, produced, stored, used, discharged or disposed of in or near the Project
unless Landlord has consented to such storage or use in its sole discretion. If
any lender or governmental agency shall require testing for Hazardous Substances
in the Premises, Tenant shall pay for such testing.

   B.  "Hazardous Substances" or "Hazardous Materials" means (a) any chemical,
compound, material, mixture or substance that is now or hereafter defined or
listed in, or otherwise classified pursuant to, any Environmental Laws as a
"hazardous substance", "hazardous material", "hazardous waste", "extremely
hazardous waste", "acutely hazardous waste", "radioactive waste", "infectious
waste", "biohazardous waste", "toxic substance", "pollutant", "toxic pollutant",
"contaminant" as well as any formulation not mentioned herein intended to
define, list, or classify substances by reason of deleterious properties such as
ignitability, corrosivity reactivity, carcinogenicity, toxicity, reproductive
toxicity, "EP toxicity", or "TCLP toxicity"; (b) petroleum, natural gas, natural
gas liquids, liquefied natural gas, synthetic gas usable for fuel (or mixtures
of natural gas and such synthetic gas) and ash produced by a resource recovery
facility utilizing a municipal solid waste stream, and drilling fluids, produced
waters and other wastes associated with the exploration, development or
production of crude oil, natural gas, or geothermal resources; (c) "hazardous
substance" as defined in

                                      -28-

<PAGE>

Section 25281(f) of the California Health and Safety Code; (d) "waste" as
defined in Section 13050(d) of the California Water Code; (e) asbestos in any
form; (f) urea formaldehyde foam insulation; (g) polychlorinated biphenyls
(PCBs); (h) radon; and (i) any other chemical, material, or substance exposure
to which is limited or regulated by any Governmental Agency because of its
quantity, concentration, or physical or chemical characteristics, or which poses
a significant present or potential hazard to human health or safety or to the
environment if released into the workplace or the environment. "Environmental
Laws" means any and all present and future federal, state and local laws,
ordinances, regulations, policies and any other requirements of any Governmental
Agency relating to health, safety, the environment or to any Hazardous
Substances, including without limitation, the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (CERCLA), the Resource
Conservation Recovery Act (RCRA), the Hazardous Materials Transportation Act,
the Toxic Substance Control Act, the Endangered Species Act, the Clean Water
Act, the Occupational Safety and Health Act, the California Environmental
Quality Act and the applicable provisions of the California Health and Safety
Code, California Labor Code and the California Water Code, each as hereafter
amended from time to time, and the present and future rules, regulations and
guidance documents promulgated under any of the foregoing.

   C.  Without limiting Tenant's liability and obligations under Sections
28(D), (E), (F) and (G), the foregoing covenant set forth in Section 28(A) shall
not extend to insignificant amounts of substances typically found or used in
general office applications so long as (i) such substances are maintained only
in such quantities as are reasonably necessary for Tenant's operations in the
Premises, (ii) such substances are used strictly in accordance with the
manufacturers' instructions therefor and all applicable Environmental Laws,
(iii) such substances are not disposed of in or about the Project in a manner
which would constitute a release or discharge thereof, and (iv) all such
substances are removed from the Project by Tenant upon the expiration or earlier
termination of this Lease. Tenant shall, within thirty (30) days after demand
therefor, provide to Landlord a written list identifying any Hazardous Materials
then maintained by Tenant in either of the Buildings, the use of each such
Hazardous Material so maintained by Tenant together with written certification
by Tenant stating, in substance, that neither Tenant nor any person for whom
Tenant is responsible has released or discharged any Hazardous Materials in or
about the Project.

   D.  In order to obtain Landlord's consent under this Section 28 with respect
to any Hazardous Material other than as specified in Section 28(C) above, Tenant
shall first submit a detailed hazardous material management plan describing all
relevant aspects of the same to Landlord for approval, which approval may be
withheld by Landlord in its sole and absolute discretion. No approval by
Landlord shall relieve Tenant of any obligation of Tenant pursuant to this
Section 28, including all removal, clean-up and indemnification obligations.
Tenant shall, within five (5) days after receipt thereof, furnish to Landlord
copies of all notices or other communications received by Tenant with respect to
any actual or alleged release or discharge of any Hazardous Material in or about
the Premises or the Project and shall, whether or not Tenant receives any such
notice or communication, notify Landlord in writing of any discharge or release
of Hazardous Material by Tenant or anyone for whom Tenant is responsible in or
about the Premises or the Project. In the event Tenant is required to maintain
any hazardous materials license or permit in connection with any use conducted
by Tenant or any equipment operated by Tenant in the Premises, copies of each
such license or permit, each renewal thereof, and any

                                      -29-

<PAGE>

communication relating to suspension, renewal or revocation thereof shall be
furnished to Landlord within five (5) days after receipt thereof by Tenant.
Compliance by Tenant with this Section 28(C) shall not relieve Tenant of any
other obligation of Tenant pursuant to this Section 28.

   E.  Upon any violation of the foregoing covenants and in all events upon any
expiration of the Term, Tenant shall be obligated, at Tenant's sole cost, to
clean up and remove from the Project all Hazardous Materials introduced into the
Project by Tenant or any third party for whom Tenant is responsible. Such
clean-up and removal shall include all testing and investigation required by any
governmental authorities having jurisdiction and preparation and implementation
of any remedial action plan required by any governmental authorities having
jurisdiction. All such clean-up and removal activities of Tenant shall, in each
instance, be conducted to the satisfaction of Landlord and all governmental
authorities having jurisdiction. Landlord's right of entry pursuant to Section
11 of this Lease shall include the right (but not the obligation) to enter and
inspect the Premises for violations of Tenant's covenant herein and to supervise
any of Tenant's clean-up and removal activities.

   F.  To the extent permitted by then applicable law, Tenant shall protect,
indemnify, defend and hold harmless Landlord, the partners of any entity
constituting Landlord and Landlord's partners, officers, employees, agents,
lenders and attorneys from and against any and all claims, liabilities, losses,
actions, costs and expenses (including attorneys' fees and costs of defense)
incurred by such indemnified persons, or any of them, as the result of (i) the
introduction into the Project by Tenant, its employees, agents, licensees,
invitees, contractors or any other person or entity for whom Tenant is
responsible of any Hazardous Material, (ii) the usage by Tenant or anyone for
whom Tenant is responsible of Hazardous Materials in or about the Project, (iii)
the discharge or release in or about the Project by Tenant or anyone for whom
Tenant is responsible of any Hazardous Material, (iv) any injury to or death of
persons or damage to or destruction of property resulting from the use by Tenant
or anyone for whom Tenant is responsible of Hazardous Materials in or about the
Project, and (v) any failure of Tenant or anyone for whom Tenant is responsible
to observe the foregoing covenants. Payment shall not be a condition precedent
to enforcement of the foregoing indemnification provision.

   G.  Upon any violation of any of the foregoing covenants, Landlord shall be
entitled to exercise all remedies available to a landlord against the defaulting
tenant, including but not limited to those set forth in Section 13 of this
Lease. Without limiting the generality of the foregoing, Tenant expressly agrees
that upon any such violation Landlord may, at its option (i) immediately
terminate this Lease, or (ii) continue this Lease in effect until compliance by
Tenant with its clean-up and removal covenant (notwithstanding the expiration of
the term of this Lease). No action by Landlord hereunder shall impair the
obligations of Tenant pursuant to this Section 28.

   29. EXCULPATION. Landlord shall have no personal liability under this
Lease; its liability shall be limited to its interest in the Project, and shall
not extend to any other property or assets of the Landlord. In no event shall
any officer, director, employee, agent, shareholder, partner, member or
beneficiary of Landlord be personally liable for any of Landlord's obligations
hereunder.

                                      -30-

<PAGE>

   30. EXTENSION OPTION. Tenant may at its option extend the Term of this
Lease for one (1) period of five (5) years (the "Renewal Term") upon the same
terms contained in this Lease, except for the amount of Base Rent payable during
the Renewal Term. Tenant shall have no additional extension option.

   A.  The Base Rent during the Renewal Term shall be the greater of (i) the
Base Rent applicable to the last day of the final Lease Year prior to the
applicable Renewal Term, or (ii) the then prevailing market rate for a
comparable term commencing on the first day of the Renewal Term for tenants of
comparable size and creditworthiness for comparable space in either of the
Buildings and other first class office buildings in the vicinity of the
Buildings as reasonably determined by Landlord in good faith.

   B.  To exercise its option, Tenant must deliver an initial notice to
Landlord not less than nine (9) months prior to the proposed commencement of the
applicable Renewal Term. Within thirty (30) days of receipt of Tenant's notice,
Landlord shall calculate and inform Tenant of the Base Rent for the Premises.
Such calculation shall be final and shall not be recalculated at the actual
commencement of the Renewal Term if any. Tenant shall give Landlord final
binding notice of intent to exercise its option to extend within fifteen (15)
days after receiving Landlord's calculation of Base Rent. If Tenant fails to
give either its initial nonbinding notice or its final binding notice timely,
Tenant will be deemed to have waived its option to extend.

   C.  Tenant's option to extend this Lease is subject to the conditions that:
(i) on the date that Tenant delivers its final binding notice exercising its
option to extend, Tenant is not in default under this Lease after the expiration
of any applicable notice and cure periods, and (ii) Tenant shall not have
assigned this Lease, or sublet any portion of the Premises under a sublease
which is in effect at any time during the final 12 months prior to the
applicable Renewal Term.

                       SIGNATURES APPEAR ON FOLLOWING PAGE

                                      -31-

<PAGE>

       IN WITNESS WHEREOF, the parties hereto have executed this Lease.

                 LANDLORD:

                 SQUARE 24 ASSOCIATES, L.P.,
                 a Delaware limited partnership

                 By:     CarrAmerica Realty Corporation,
                         its general partner

                         By: /s/ Philip L. Watkins
                         Print Name: Philip L. Watkins
                         Print Title: COO

                 TENANT:

                 DIRECT III MARKETING, INC.
                 a Delaware corporation dba "Education Lending Group, Inc."

                         By: /s/ Douglas L. Feist
                         Print Name: Douglas L. Feist
                         Print Title: Executive Vice President and Secretary

                                       S-1

<PAGE>

                                   APPENDIX A

                              PLAN OF THE PREMISES

                   (attach floor plan depicting the Premises)

                                       A-1

<PAGE>

                                   APPENDIX B

                              RULES AND REGULATIONS

     1. Tenant shall not place anything, or allow anything to be placed near the
glass of any window, door, partition or wall which may, in Landlord's judgment,
appear unsightly from outside of the Project.

     2. The Project directory shall be available to Tenant solely to display
names and their location in the Project, which display shall be as directed by
Landlord.

     3. The sidewalks, halls, passages, exits, entrances, elevators and
stairways shall not be obstructed by Tenant or used by Tenant for any purposes
other than for ingress to and egress from the Premises. Tenant shall lend its
full cooperation to keep such areas free from all obstruction and in a clean and
sightly condition and shall move all supplies, furniture and equipment as soon
as received directly to the Premises and move all such items and waste being
taken from the Premises (other than waste customarily removed by employees of
the Building) directly to the shipping platform at or about the time arranged
for removal therefrom. The halls, passages, exits, entrances, elevators,
stairways, balconies and roof are not for the use of the general public and
Landlord shall, in all cases, retain the right to control and prevent access
thereto by all persons whose presence in the judgment of Landlord, reasonably
exercised, shall be prejudicial to the safety, character, reputation and
interests of the Project. Neither Tenant nor any employee or invitee of Tenant
shall go upon the roof of the Project.

     4. The toilet rooms, urinals, wash bowls and other apparatuses shall not be
used for any purposes other than that for which they were constructed, and no
foreign substance of any kind whatsoever shall be thrown therein, and to the
extent caused by Tenant or its employees or invitees, the expense of any
breakage, stoppage or damage resulting from the violation of this rule shall be
borne by Tenant.

     5. Tenant shall not cause any unnecessary janitorial labor or services by
reason of Tenant's carelessness or indifference in the preservation of good
order and cleanliness.

     6. Tenant shall not install or operate any refrigerating, heating or air
conditioning apparatus, or carry on any mechanical business without the prior
written consent of Landlord; use the Premises for housing, lodging or sleeping
purposes; or permit preparation or warming of food in the Premises (warming of
coffee and individual meals with employees and guests excepted). Tenant shall
not occupy or use the Premises or permit the Premises to be occupied or used for
any purpose, act or thing which is in violation of any Governmental Requirement
or which may be dangerous to persons or property.

     7. Tenant shall not bring upon, use or keep in the Premises or the Project
any kerosene, gasoline or inflammable or combustible fluid or material, or any
other articles deemed hazardous to persons or property, or use any method of
heating or air conditioning other than that supplied by Landlord.

     8. Landlord shall have sole power to direct electricians as to where and
how telephone and other wires are to be introduced. No boring or cutting for
wires is to be allowed

                                       B-1

<PAGE>

without the consent of Landlord. The location of telephones, call boxes and
other office equipment affixed to the Premises shall be subject to the approval
of Landlord.

     9. No additional locks shall be placed upon any doors, windows or transoms
in or to the Premises. Tenant shall not change existing locks or the mechanism
thereof. Upon termination of the lease, Tenant shall deliver to Landlord all
keys and passes for offices, rooms, parking lot and toilet rooms which shall
have been furnished Tenant.

     In the event of the loss of keys so furnished, Tenant shall pay Landlord
therefor. Tenant shall not make, or cause to be made, any such keys and shall
order all such keys solely from Landlord and shall pay Landlord for any keys in
addition to the two sets of keys originally furnished by Landlord for each lock.

     10. Tenant shall not install linoleum, tile, carpet or other floor covering
so that the same shall be affixed to the floor of the Premises in any manner
except as approved by Landlord.

     11. No furniture, packages, supplies, equipment or merchandise will be
received in the Project or carried up or down in the freight elevator, except
between such hours and in such freight elevator as shall be designated by
Landlord. Tenant shall not take or permit to be taken in or out of other
entrances of the Buildings, or take or permit on other elevators, any item
normally taken in or out through the trucking concourse or service doors or in
or on freight elevators.

     12. Tenant shall cause all doors to the Premises to be closed and securely
locked and shall turn off all utilities, lights and machines before leaving the
Project at the end of the day.

     13. Without the prior written consent of Landlord, Tenant shall not use the
name of the Project or any picture of the Project in connection with, or in
promoting or advertising the business of, Tenant, except Tenant may use the
address of the Project as the address of its business.

     14. Tenant shall cooperate fully with Landlord to assure the most effective
operation of the Premises' or the Project's heating and air conditioning, and
shall refrain from attempting to adjust any controls, other than room
thermostats installed for Tenant's use. Tenant shall keep corridor doors closed.

     15. Tenant assumes full responsibility for protecting the Premises from
theft, robbery and pilferage, which may arise from a cause other than Landlord's
negligence, which includes keeping doors locked and other means of entry to the
Premises closed and secured.

     16. Peddlers, solicitors and beggars shall be reported to the office of the
Project or as Landlord otherwise requests.

     17. Tenant shall not advertise the business, profession or activities of
Tenant conducted in the Project in any manner which violates the letter or
spirit of any code of ethics adopted by any recognized association or
organization pertaining to such business, profession or activities.

                                       B-2

<PAGE>

     18. No bicycle or other vehicle and no animals or pets shall be allowed in
the Premises, halls, freight docks, or any other parts of the Buildings except
that blind persons may be accompanied by "seeing eye" dogs. Tenant shall not
make or permit any noise, vibration or odor to emanate from the Premises, or do
anything therein tending to create, or maintain, a nuisance, or do any act
tending to injure the reputation of the Buildings.

     19. Tenant acknowledges that security problems may occur at the Buildings
which may require the employment of extreme security measures in the day-to-day
operation of the Project.

     Accordingly:

          (a) Landlord may, at any time, or from time to time, or for regularly
scheduled time periods, as deemed advisable by Landlord and/or its agents, in
their sole discretion, require that persons entering or leaving the Project or
the Property identify themselves to watchmen or other employees designated by
Landlord, by registration, identification or otherwise.

          (b) Tenant agrees that it and its employees will cooperate fully with
Project employees in the implementation of any and all security procedures.

          (c) Such security measures shall be the sole responsibility of
Landlord, and Tenant shall have no liability for any action taken by Landlord in
connection therewith, it being understood that Landlord is not required to
provide any security procedures and shall have no liability for such security
procedures or the lack thereof.

     20. Tenant shall not do or permit the manufacture, sale, purchase, use or
gift of any fermented, intoxicating or alcoholic beverages without obtaining
written consent of Landlord.

     21. Tenant shall not disturb the quiet enjoyment of any other tenant.

     22. Tenant shall not provide any janitorial services or cleaning without
Landlord's written consent and then only subject to supervision of Landlord and
at Tenant's sole responsibility and by janitor or cleaning contractor or
employees at all times satisfactory to Landlord.

     23. Landlord may retain a pass key to the Premises and be allowed
admittance thereto at all times to enable its representatives to examine the
Premises from time to time and to exhibit the same and Landlord may place and
keep on the windows and doors of the Premises at any time signs advertising the
Premises for Rent.

     24. No equipment, mechanical ventilators, awnings, special shades or other
forms of window covering shall be permitted either inside or outside the windows
of the Premises without the prior written consent of Landlord, and then only at
the expense and risk of Tenant, and they shall be of such shape, color,
material, quality, design and make as may be approved by Landlord.

                                       B-3

<PAGE>

     25. Tenant shall not during the term of this Lease canvas or solicit other
tenants of the Buildings for any purpose.

     26. Tenant shall not install or operate any phonograph, musical or
sound-producing instrument or device, radio receiver or transmitter, TV receiver
or transmitter, or similar device in the Buildings, nor install or operate any
antenna, aerial, wires or other equipment inside or outside the Buildings, nor
operate any electrical device from which may emanate electrical waves which may
interfere with or impair radio or television broadcasting or reception from or
in the Buildings or elsewhere, without in each instance the prior written
approval of Landlord. The use thereof, if permitted, shall be subject to control
by Landlord to the end that others shall not be disturbed.

     27. Tenant shall promptly remove all rubbish and waste from the Premises.

     28. Tenant shall not exhibit, sell or offer for sale, Rent or exchange in
the Premises or at the Project any article, thing or service, except those
ordinarily embraced within the use of the Premises specified in Section 6 of
this Lease, without the prior written consent of Landlord.

     29. Tenant shall list all furniture, equipment and similar articles Tenant
desires to remove from the Premises or the Buildings and deliver a copy of such
list to Landlord and procure a removal permit from the Office of the Buildings
authorizing employees of the Buildings to permit such articles to be removed.

     30. Tenant shall not overload any floors in the Premises or any public
corridors or elevators in the Buildings.

     31. Tenant shall not do any painting in the Premises, or mark, paint, cut
or drill into, drive nails or screws into, or in any way deface any part of the
Premises or the Buildings, outside or inside, without the prior written consent
of Landlord.

     32. Whenever Landlord's consent, approval or satisfaction is required under
these Rules, then unless otherwise stated, any such consent, approval or
satisfaction must be obtained in advance, such consent or approval may be
granted or withheld in Landlord's sole discretion, and Landlord's satisfaction
shall be determined in its sole judgment.

     33. Tenant and its employees shall cooperate in all fire drills conducted
by Landlord in the Buildings.

                                       B-4

<PAGE>

                                   APPENDIX C

                          TENANT IMPROVEMENT AGREEMENT

     1. IMPROVEMENTS. Landlord shall paint the Expansion Premises and replace
the carpet in the Expansion Premises using building standard materials (the
"Improvements").

     2. CHANGE ORDERS. If, prior to the Commencement Date, Tenant shall require
improvements or changes (individually or collectively, "Change Orders") to the
Expansion Premises in addition to, revision of or substitution for the
Improvements, Tenant shall deliver to Landlord for its approval plans and
specifications for such Change Orders. If Landlord does not approve of the plans
for Change Orders, Landlord shall advise Tenant of the revisions required.
Tenant shall revise and redeliver the plans and specifications to Landlord
within five (5) business days of Landlord's advice or Tenant shall be deemed to
have abandoned its request for such Change Orders. Tenant shall pay for all
preparations and revisions of plans and specifications, and the construction of
all Change Orders.

     3. [INTENTIONALLY OMITTED].

     4. COMMENCEMENT DATE DELAY. Commencement Date shall be delayed until the
Improvements have been substantially completed (the "Completion Date"), except
to the extent that the delay shall be caused by any one or more of the following
(a "Tenant Delay"):

        (a) Tenant's request for Change Orders whether or not any such Change
Orders are actually performed; or

        (b) Contractor's performance of any Change Orders; or

        (c) Tenant's request for materials, finishes or installations requiring
unusually long lead times; or

        (d) Tenant's delay in reviewing, revising or approving plans and
specifications beyond the periods set forth herein; or

        (e) Tenant's delay in providing information critical to the normal
progression of the project. Tenant shall provide such information as soon as
reasonably possible, but in no event longer than one week after receipt of such
request for information from the Landlord; or

        (f) Tenant's delay in making payments to Landlord for costs of the
Change Orders; or

        (g) Any other act or omission by Tenant, its agents, contractors or
persons employed by any of such persons.

If the Commencement Date is delayed for any reason, then Landlord shall cause
Landlord's architect to certify the date on which the Improvements would have
been completed but for any Tenant Delay (and such date shall be the Completion
Date for all purposes) or were in fact completed without any Tenant Delay.

                                       C-1

<PAGE>

     5. ACCESS BY TENANT PRIOR TO COMMENCEMENT OF TERM. Landlord at its
discretion may permit Tenant and its agents to enter the Expansion Premises
prior to the Commencement Date to prepare the Expansion Premises for Tenant's
use and occupancy. Any such permission shall constitute a license only,
conditioned upon Tenant's:

        (a) working in harmony with Landlord and Landlord's agents, contractors,
workmen, mechanics and suppliers and with other tenants and occupants of the
Building;

        (b) obtaining in advance Landlord's approval of the contractors proposed
to be used by Tenant and depositing with Landlord in advance of any work (i)
security satisfactory to Landlord for the completion thereof, and (ii) the
contractor's affidavit for the proposed work and the waivers of lien from the
contractor and all subcontractors and suppliers of material; and

        (c) furnishing Landlord with such insurance as Landlord may require
against liabilities which may arise out of such entry.

     Landlord shall have the right to withdraw such license for any reason upon
twenty-four (24) hours' written notice to Tenant. Landlord shall not be liable
in any way for any injury, loss or damage which may occur to any of Tenant's
property or installations in the Premises prior to the Commencement Date. Tenant
shall protect, defend, indemnify and save harmless Landlord from all
liabilities, costs, damages, fees and expenses arising out of the activities of
Tenant or its agents, contractors, suppliers or workmen in the Premises or the
Building. Any entry and occupation permitted under this Section shall be
governed by Section 5 and all other terms of the Lease.

     6. MISCELLANEOUS.

     Terms used in this Appendix C shall have the meanings assigned to them in
the Lease. The terms of this Appendix C are subject to the terms of the Lease.

                                       C-2

<PAGE>

                                   APPENDIX D

                    MORTGAGES CURRENTLY AFFECTING THE PROJECT

None

                                       D-1

<PAGE>

                                   APPENDIX E

                         COMMENCEMENT DATE CONFIRMATION

Landlord:            Square 24 Associates L.P., a Delaware limited partnership

Tenant:              Direct III Marketing, Inc., a Delaware corporation, doing
                     business as "Education Lending Group, Inc."

     This Commencement Date Confirmation is made by Landlord and Tenant pursuant
to that certain Lease dated as of January ___, 2002 (the "Lease") for certain
premises known as Suite 210 in the building commonly known as 12760 High Bluff
Drive, and Suite 340 in the building commonly known as 12770 High Bluff Drive,
each in San Diego, California (the "Premises"). This Confirmation is made
pursuant to Item 11 of the Schedule to the Lease.

     1. Lease Commencement Date, Termination Date. Landlord and Tenant hereby
agree that the Commencement Date of the Lease is ______________ ____, 2002, and
the Termination Date of the Lease is ____________.

     2. Acceptance of Premises. Tenant has inspected the Premises and affirms
that the Premises is acceptable in all respects in its current "as is"
condition.

     3. Size of the Premises. Landlord and Tenant agree that the Premises are
comprised of 7,537 rentable square feet.

     4. Incorporation. This Confirmation is incorporated into the Lease, and
forms an integral part thereof. This Confirmation shall be construed and
interpreted in accordance with the terms of the Lease for all purposes.

                     TENANT:

                     Direct III Marketing, Inc.
                     a Delaware corporation dba "Education Lending Group, Inc."

                     By:
                        -----------------------------------------------
                          DOUGLAS L. FEIST
                          Executive Vice President and Secretary

                     LANDLORD:

                     SQUARE 24 ASSOCIATES, L.P.,
                     a Delaware limited partnership

                     By:
                        -----------------------------------------------
                     Name:
                         ----------------------------------------------
                     Title:
                           --------------------------------------------

                                       E-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]