Document:

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                                                                  Exhibit 10.12

                              COMMERCIAL LEASE

     THIS COMMERCIAL LEASE ("Lease"), dated November 15, 1999, is made
between INTER CO-OP USA NO. III [ILLEGIBLE] NETWORKS, INC. ("Tenant"). In
consideration of the mutual convenants in this Lease, Landlord and Tenant
agree as follows:

1.   BASIC PROVISIONS AND DEFINITIONS. The following terms, whenever used in
     this Lease, with the first letter of each word capitalized, will have
     the meanings set forth in this Section, unless the context otherwise
     requires:

     1.1.   PREMISES. The leased portion of the property as shown on the
            floor plan attached as Exhibit A. The Premises as located
            on the real property legally described on Exhibit B.

     1.2    BUILDING NAME AND ADDRESS.
            CAMPUS BUSINESS CENTER
            33761 9TH AVENUE SOUTH
            FEDERAL WAY, WA 98003

     1.3    TENANT'S SQUARE FOOTAGE & PROPORTIONATE SHARE. Tenant's Square
            Footage is approximately 2,721.

            Tenant's Proportionate Share of the entire net leasable space in
            the property is agreed to be 4.05%.

     1.4    DATE OF EXECUTION. The date above written, which is the date of
            full execution hereof.

     1.5    COMMENCEMENT DATE (SECTION 4). January 1, 2000.

     1.6    TERM (SECTION 3). The period beginning on the Commencement Date
            and ending on December 31, 2002 (which date shall be the last day
            of a month)("Lease Term End Date").

     1.7    MINIMUM RENT FOR INITIAL (SECTION 7).

<TABLE>
                       <S>                 <C>
                       Months 1-6:         $1,576.80 per month plus NNN (as described in Paragraph 9)
                       Months 7 - 12:      $1,624.10 per month plus NNN.
                       Months 13 - 18:     $1,672.83 per month plus NNN.
                       Months 19 - 24:     $1,723.01 per month plus NNN.
                       Months 25 - 30:     $1,774.70 per month plus NNN.
                       Months 31 - 36:     $1,827.94 per month plus NNN.
</TABLE>

     1.8    RENT PAYMENT. Monthly, in advance on the first calendar day of
            each month.

     1.9    DEPOSITS (SECTION 8). Rent Deposit $1,576.80. Security Deposit
            $1,827.94

     1.10   LANDLORD'S NOTICE AND PAYMENT ADDRESS (SECTION 24.15).

<TABLE>
<CAPTION>
            NOTICE:                                  PAYMENT:
            <S>                                      <C>
            c/o Morris Piha Real Estate Services     c/o Morris Piha Real Estate Services.
            14100 SE 36th Street                     14100 SE 36th Street
            Suite 200                                Suite 200
            Bellevue, WA 98006-1334                  Bellevue, WA 98006-1134
            Telephone (425) 643-8400                 Telephone (425) 643-8400
</TABLE>

            TENANT'S BILLING AND NOTICE ADDRESS (SECTION 24.15)
            909 S. 336th St. #110
            Federal Way, WA 98003

     1.12   GUARANTOR'S ADDRESS (SECTION 24.18).

                                      -1-

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     1.13   TENANT'S TRADE NAME (IF ANY), Freei Net.

     1.14   STATE OF ORGANIZATION OF TENANT (IF OTHER THAN INDIVIDUAL).  WA

     1.15   PERMITTED USERS UNDER LEASE (SECTION 5). General Office Use and
            use as a call center.

     1.16   RIDERS & EXHIBITS TO THE LEASE (SECTION 24.20). Riders #: 28 & 29.
            Exhibit Letters: A & B

     1.17   BROKER FEE (IF ANY, OWNED BY LANDLORD) (SECTION 25).  By separate
            letter

2.   PREMISES. Landlord hereby leases the Premises to Tenant and Tenant hereby
     leases the Premises from Landlord, upon the term and condition set forth
     in this Lease. The Premises are a part of the building which is situated
     at the Building Address as set out in Section 1.

3.   TERM. Tenant leases from Landlord the Premises for a lease term described
     in Section 1.6 (the "Lease Term"). The Lease Term will begin on the
     Commencement date and end at midnight on the Lease Term End Date unless
     sooner terminated or extended as provided elsewhere in this Lease.

4.   POSSESSION.

     4.1    POSSESSION.  Except as provided elsewhere in this Lease, Tenant
            will be entitled to possession of the Premises on the
            Commencement Date.

     4.2    DELAY OF POSSESSION. If Landlord, for any reason, cannot deliver
            possession of the Premises to Tenant upon the Commencement Date,
            this Lease shall not be void or voidable, nor shall Landlord be
            liable to Tenant for any loss or damage resulting from ??? but
            then shall be a rent abatement covering the period between the
            Commencement Date and the time the Landlord ??? to tenant and all
            of the terms and conditions of this Lease shall remain in full
            force and effect. If Landlord does not deliver possession of the
            Premises to Tenant within 120 days after the Commencement Date
            (the "Delivery period"), Tenant may, at its option cancel this
            Lease by written notice delivered to Landlord within the ten day
            period immediately succeeding the final day of the Delivery
            Period. If Tenant does not deliver such written notice to
            Landlord, within that ten-day period, Tenant's right to cancel
            this Lease will terminate and be of no further force or effect,
            and the terms and conditions of this Lease will remain in full
            force and effect, except that Tenant's rent abatement shall
            continue until the time Landlord delivery possession of the
            Premises to Tenant.

     4.3    EARLY POSSESSION. Landlord and Tenant may agree to Tenant's
            occupancy of the Premises prior to the Commencement Date as per
            PARAGRAPH #29. If Tenant occupies the Premises prior to the
            Commencement Date, the occupancy will be subject to all
            provisions of this Lease, the occupancy shall not advance the
            termination date and Tenant shall pay rent throughout the period
            of early occupancy as set forth in Sections 7, 8 and 9 of this
            Lease.

     4.4    SURRENDER OF PREMISES. At the expiration or sooner termination of
            this Lease, Tenant shall return the Premises to Landlord in the
            same condition in which received, broom clean, reasonable wear
            and tear excepted. Tenant shall remove all personal property
            trade fixtures, appliances and equipment ("Fixtures"). Where such
            removal will require structural changes or damage to the
            Premises, Landlord will have the option to have same removed at
            Tenant's expense and under Landlord's supervision. Tenant shall
            also remove any and all alterations which Landlord designates to
            be removed pursuant to Section 10.4 below, and shall restore the
            Premises to the condition they were in prior to the installation
            or construction of said alterations. If Tenant has failed to
            fully pay all amounts due under this lease, Landlord may, at
            Landlord's option, designate any or all Fixtures paid for by
            Tenant and installed on the Premises. Landlord's payment in full
            or in part of any such unpaid amounts, and Tenant shall provide
            Landlord with a Bill of Sale correctly evidence the transfer of
            ownership. If Tenant fails to remove any fixture, at Landlord's
            option, Tenant shall agree to designate and permit Landlord to
            remove the same at Tenant's expense. Tenant shall return all keys
            to the Landlord within 12 hours following termination of this
            Lease or pay for the cost of new keys, if the Landlord so
            requires. Tenant's obligation to perform this covenant shall
            survive the expiration of termination of this Lease. Landlord may
            place and maintain "For Lease" signs in conspicuous places on the
            Premises for 180 days prior to the expiration or early
            termination of this Lease, and reserves the right to enter any
            part of the Premises during the same 180-day period to show the
            Premises to prospective tenants.

5.   USE.

     5.1    USE. Tenant covenants that at all times during the Lease term and
            such other time as Tenant occupies the Premises, Tenant shall use
            the Premises for the Permitted Uses and for no other purposes
            without the prior written consent of Landlord, as set forth in
            Section 1.13.

     5.2    USES PROHIBITED. Tenant shall not do or permit anything to be
            done in nor about the Premises or bring or keep anything therein
            which will in any way increase or affect the existing rate of any
            fire or other insurance policy upon the Premises or the Building,
            or cause a cancellation of any such insurance policy covering
            said Premises, nor which will in any way obstruct or interfere
            with the right of other

                                     -2-

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            tenants or occupants of the Building or injure or annoy them, nor
            shall the Tenant use or allow the Premises to be used for any
            improper, immoral, unlawful, objectionable or offensive purpose, nor
            shall Tenant cause, maintain or suffer or permit any ??? on or about
            the Premises. Tenant shall not commit or allow to be committed any
            waste in or upon the Premises and shall refrain from using or
            permitting the use of the Premises or any portion thereof as living
            quarters, sleeping quarters or for lodging purposes. Tenant shall
            not do or permit anything to be done in or about the Premises, nor
            bring or keep anything thereon that is or will constitute or create
            a hazardous waste or substance or violate any environmental law.
            Tenant will indemnify and hold the Landlord harmless from any and
            all damages related to the Tenant's introduction to, or creation of,
            hazardous waste on the Premises. Tenant shall advise Landlord in
            writing immediately of any environmental concern related to
            Tenant's use and occupancy of the Premises brought to Tenant's
            attention by any private party or governmental agency or official.
            Landlord shall have the right to remedy any environmental problem
            and to conduct any environmental tests reasonably necessary to
            discover a hazardous waste or other environmental problem and Tenant
            shall be liable for all costs and expenses related to such tests or
            remedial action if a hazardous waste or environmental problem
            created by Tenant is found to exist.

     5.3    BUILDING CODES AND ZONING.  Tenant has investigated all
            applicable building and zoning codes, regulations and ordinances
            to determine whether Tenant's intended use of the Premises is
            permitted. Based upon this investigation, Tenant accepts the
            Premises "as is" subject to all applicable statutes, ordinances,
            rules and regulations governing Tenant's use of the Premises. Any
            and all expenses required to comply with all applicable statutes,
            ordinances, rules, regulations and requirements in effect during
            the Lease Term or part thereof regulating Tenant's use of the
            Premises will be borne exclusively by Tenant. Tenant agrees to
            comply with all such statutes, ordinances, rules and regulations
            throughout the Lease Term.

     5.4    CONDITION OF PREMISES.  Tenant has inspected the plumbing,
            lighting, air conditioning, heating, doors, windows, interior
            walls, flooring and all other elements of the Premises prior to
            execution of this Lease. Based upon that inspection, Tenant
            accepts the Premises "as is" in the absence of any material
            change in its condition prior to the Commencement Date or the
            date the Tenant takes possession of the Premises, whichever is
            earlier. Tenant acknowledges that neither Landlord nor Landlord's
            agent has made any representation or warranty as to the present
            or future suitability of the Premises for the conduct of Tenant's
            business.

6.   COMMON AREAS.

     6.1    AREAS.  Landlord shall make available such areas and facilities
            for the common use of all tenants of the Building including but
            not limited to parking areas, driveways, truckways, delivery
            passages, truck-loading area, access and egress roads, wall ???
            and landscaped and planted areas) as Landlord shall reasonably
            deem appropriate ("Common Areas"). The roof and exterior walls of
            the Building and the utility systems up to the exterior walls of
            the Premises are Common Areas. Landlord or its agents shall
            operate, manage, equip, light, repair, replace and maintain the
            Common Areas for the intended purposes in such manner as Landlord
            shall reasonably, in its sole discretion, determine. Landlord
            may, from time to time, change the size, location, nature and use
            of any Common Area, and make installations therein and move and
            remove the same, provided that Tenant's access to the Premises is
            not materially altered. All expenses in connection with the
            Common Areas are Operating Expenses for the purposes of Section 9
            below.

     6.2    RIGHTS. Tenant and its employees, agents and invitees shall have
            the non-exclusive right (in common with other Tenants of the
            Building and Landlord) to use the Common Areas, subject to any
            Rules, as defined in Section 18. Landlord's Rules may include the
            documentation of specific areas in which cars owned by Tenant,
            its employees, agents and invitees must be parked. Landlord may
            at any time temporarily close any Common Areas due to
            construction, maintenance, repair or changes to any part of the
            Building or the real property upon which the Building is located,
            with prior notice to Tenant.

     6.3    PARKING. Tenant shall be entitled to use, on a non-reserved
            basis, parking available to the Building. Tenant shall not at any
            time interfere with the rights of Landlord or of other tenants of
            the Building or other adjacent buildings or invitees of the same
            to use any of the parking areas. Twenty-four hour parking on the
            real property upon which the Premises are located shall not be
            permitted by Tenant, its employees, agents or invitees.

7.   MINIMUM RENT.

     7.1    AMOUNT.  During the Lease Term, Tenant agrees to pay to Landlord
            at Landlord's Payment Address or such other place as designated,
            the Minimum Rent, in the manner described in Section 7.2.

     7.2    RENT PAYMENT.  The Minimum Rent for the Lease Term shall be paid
            in advance of the first day of each calendar month of the Lease
            Term or any period prior or subsequent thereto while Tenant is in
            possession of the Premises. The Minimum Rent for any partial
            month shall be prorated based upon a 30-day month. The Minimum
            Rent is exclusive of any sales, franchise, business and
            occupation or other tax based on rents. Should any such taxes
            apply during the term of this Lease, the Minimum Rent shall be
            increased by such amount. In the event percentage or other
            additional rent is payable by the Tenant under this Lease, it
            shall be paid in the manner and at the time set forth in the
            Riders attached hereto and by reference made a part of this
            Lease. All Minimum Rent, Additional Rent (as hereinafter defined)
            and other amounts payable under this Lease shall be paid without
            deduction or offset.

                                     -3-

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8.   FIRST MONTH'S RENT AND SECURITY DEPOSIT.

     8.1  DEPOSITS.  As set out in Section 1.9, Tenant has paid Landlord the
          Rent Deposit, which shall be credited to the payment of the first
          month's rent. Tenant has also deposited the Security Deposit for
          the performance of all of the terms, covenants and conditions of
          this Lease and as additional consideration for entering into this
          Lease. Landlord shall not be required to keep the Security Deposit
          separate from its general accounts and Tenant shall not be entitled
          to interest on such deposit. Tenant may not apply the Security
          Deposit to the last month's rent.

     8.2  APPLICATIONS ON DEFAULT.  If Tenant is in default under this Lease,
          Landlord may use the Security Deposit, or any portion thereof to
          cure the default or to compensate Landlord for damages (including
          attorneys' fees) sustained by Landlord resulting from Tenant's
          default, including, but not limited to, the payment of rent and the
          cost of cleaning and/or repairing the Premises. Any payment to
          Landlord from the Security Deposit, whether during the Lease Term
          or upon termination of this Lease, shall not be considered a
          payment of liquidated damages. Tenant shall, within ten days after
          written demand, deposit cash with Landlord in an amount sufficient
          to restore the Security Deposit to the full amount provided in
          this Lease, and Tenant's failure to do so shall be a material
          breach of this Lease. If Tenant is not in default at the expiration
          of the Lease Term and after Tenant has vacated the Premises,
          Landlord shall return the Security Deposit (less any amounts
          deducted by Landlord that Tenant has not restored pursuant to this
          Section 8.2 and less any amounts used by Landlord to restore the
          Premises to the condition required in Section 4.4) within 45 days
          of the latter of such expiration of this Lease or vacation of the
          Premise. No trust relationship is created between Landlord and
          Tenant with respect to the Security Deposit.

9.   OPERATING EXPENSES.

     9.1  NET LEASE.  The purpose of this Section 9 is to insure that, in
          addition to Minimum Rent, Tenant pays its Proportionate Share of
          all expenses relating to the use, maintenance, ownership, repair
          and insurance of the Premises, except costs specifically assumed by
          Landlord according to other terms of this Lease.

     9.2  DIRECT EXPENSE.  The expenses listed in this Section 9.2 ("Direct
          Expenses") are to be paid directly by Tenant:

          9.2.1  UTILITIES AND BUILDING SERVICES.  Tenant agrees to pay
                 before delinquency and at its sole cost and expense, all
                 charges for utilities and building services supplied to the
                 Premises including, without limitation, water, electricity,
                 gas, sewer, waste disposal, security, heating, ventilating,
                 and air conditioning, throughout the full Lease Term.
                 Landlord shall not be liable for the failure of any of these
                 services for any reason whatsoever. If charges for any or
                 all of such utility services are charged for the Building as
                 a whole, Tenant agrees to pay, upon demand, Tenant's
                 Proportionate Share of such charges. If charges for any or
                 all of such utility or building services are charged for a
                 larger space containing the Premises, Tenant agrees to pay
                 upon demand a share of any such charges based on the
                 proportion that the square footage of the Premises bears to
                 such larger space or a share determined by Landlord based
                 upon Landlord's estimate of Tenant's consumption relative to
                 other Tenant's sharing such utilities or building services.

          9.2.2  INSURANCE PROCURED BY TENANT.  Throughout the Lease Term and
                 any other period(s) of occupancy of the Premises by Tenant,
                 Tenant shall, at Tenant's expense, obtain and maintain the
                 following insurance policies, naming as additional insureds,
                 the Landlord, Morris Piha Management Group, Inc. and
                 Landlord's lender, as instructed by Landlord:

                 (a)  LIABILITY INSURANCE.  A commercial general liability
                      insurance policy providing coverage for bodily injury
                      liability, property damage liability and personal
                      injury liability with minimum limits of not less than
                      $1,000,000 Combined Single Limit per accident and
                      $2,000,000 General Aggregate.  Such insurance policies
                      shall include Blanket Contractual Liability and Owners
                      and Contractors Protective endorsements. Landlord may
                      increase or decrease the required limit as it deems
                      necessary based upon periodic insurance reviews. The
                      insurance required by this Section shall be on an
                      occurrence basis, and underwritten by an acceptable
                      insurer licensed to do business in the State of
                      Washington. If Tenant is unable to obtain this
                      insurance on an occurrence basis, it may be on a
                      claims-made basis provided that, in addition, Tenant,
                      at Tenant's expense, obtains an owner's protective
                      policy issued in the name of Landlord only, which is on
                      an occurrence basis for the limits required by this
                      Section 9.2.2(a). The insurance shall be written as a
                      primary policy not contributing with and not in excess
                      of coverage which Landlord may carry.

                 (b)  PERSONAL PROPERTY INSURANCE.  A special form policy of
                      property insurance (or the equivalent) covering all
                      Tenant's personal property, including but not limited
                      to Tenant's furniture, fixtures, leasehold
                      improvements, equipment and inventory, in the amount of
                      its full replacement costs. Such property insurance
                      coverage shall at a minimum insure against loss
                      resulting from fire, lightning and extended or broad
                      form perils. Landlord shall be named as Loss Payee as
                      its interest may appear in tenant improvements and
                      betterments.

                                       -4-

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                 (c)  BUSINESS INTERRUPTION AND PLATE GLASS INSURANCE.
                      Business interruption insurance in an amount sufficient
                      to protect Tenant against any additional costs and lost
                      income associated with a move to temporary space due to
                      a business interruption. In addition, plate glass
                      insurance in an amount sufficient to replace windows in
                      the Premises in the event of breakage.

                 Tenant shall obtain the insurance required by this
                 Section 9.2.2 from companies reasonably acceptable to
                 Landlord licensed to do business in the State of Washington.
                 Before occupying the Premise, Tenant shall deliver to
                 Landlord or Landlord's agent, copy of the insurance policies
                 required by this Section 9.2.2, or certificates evidencing
                 the existence and amount of such insurance. If required by
                 Landlord, or Landlord's agent, Tenant shall deliver the
                 original policy to Landlord's lender. Not later than ten
                 days before expiration of these policies, the Tenant shall
                 deliver to Landlord evidence that insurance required by this
                 Section 9.2.2 has been continued. The policies shall not be
                 cancelable or subject to reduction of coverage until after
                 30 days prior written notice to Landlord, or its Agent, and
                 Landlord's lender, if any. If Tenant fails to maintain the
                 required insurance Landlord may, but it is not required to,
                 procure the same at Tenant's expense.

          9.2.3  PERSONAL PROPERTY TAXES.  Tenant shall pay, before
                 delinquency, any and all taxes levied or assessed and payable
                 during the Lease Term upon all Tenant's equipment, furniture,
                 fixtures and any other personal property located on the
                 Premises. If any of the same are assessed or taxed with the
                 building or real property upon which the Building is located,
                 Tenant shall pay Landlord the amount of such taxes within ten
                 days after receipt of a written statement setting forth the
                 amount of such taxes that Landlord has determined to be
                 attributable to Tenant's personal property.

          9.2.4  LICENSES AND TAXES.  Tenant shall be liable for, and shall
                 pay throughout the Lease Term, all license and excise fees
                 and occupation taxes covering the business conducted on the
                 premises. If any governmental authority or unit under any
                 present or future law effective at any time during the Lease
                 Term shall in any manner levy a tax on rents payable under
                 this Lease or rent accruing from use of the premises or a
                 tax in any form against Landlord because of, or measured by,
                 income derived from the leasing or rental of said property,
                 such tax shall be paid by Tenant, either directly or through
                 Landlord, and upon Tenant's default therein, Landlord shall
                 have the same remedies as upon failure to pay Minimum
                 Monthly Rent. It is understood and agreed, however, that
                 Tenant shall not be liable to pay any net income tax imposed
                 on Landlord unless, and then only to the extent that, the
                 net income tax is a substitute for real estate taxes.

9.3      ADDITIONAL RENT.  Tenant shall pay as additional rent ("Additional
         Rent") in the manner set forth in Section 9.4, Tenant's Proportionate
         Share of the following expenses

         9.3.1   INSURANCE PROCURED BY LANDLORD.  Throughout the Lease term,
                 Tenant's Proportionate Share of the following insurance
                 policies, obtained and maintained by Landlord, insuring the
                 Landlord and Landlord's lender or any other insurance that
                 Landlord may deem necessary, including but not limited to
                 earthquake and flood insurance.

                 (a)  LIABILITY INSURANCE.  A commercial general liability
                      insurance policy providing coverage for bodily injury
                      liability, property damage liability and personal
                      injury liability with in such amounts and with such
                      endorsements as Landlord may reasonably determine
                      from time to time.

                 (b)  FIRE AND CASUALTY INSURANCE. A fire and casualty
                      insurance policy with extended coverage endorsements
                      for the full replacement value of the Premises as the
                      Landlord may reasonably determine from time to time.

                 (c)  BOILER AND RENTAL LOSS INSURANCE.  Boiler interruption
                      and rental loss insurance in an amount sufficient to
                      protect Landlord from any loss of rental income
                      resulting from boiler failure or any other reason.

         9.3.2   REAL PROPERTY TAXES AND ASSESSMENTS.  Tenant's Proportionate
                 Share of all real property taxes and general and special
                 assessments levied and assessed against the Building
                 improvements on the land of which the Premises are a part.
                 Each year Landlord shall notify Tenant of Landlord's
                 calculation of Tenant's Proportionate Share of the real
                 property taxes and assessments. Tenant shall pay Tenant's
                 Proportionate Share of said taxes or assessments in the
                 manner set forth in Section 9.4. Upon written request,
                 Landlord will furnish Tenant with a copy of the Tax
                 assessment bill. Landlord may require from Tenant, upon
                 reasonable written notice from Landlord, a payment of the
                 Tenant's Proportionate Share of such real property taxes
                 and/or assessments to Landlord on a periodic basis. If this
                 Lease commences or terminates other than on January 1 and
                 December 31 respectively, taxes and assessments payable
                 shall be prorated in the first and last calendar years of
                 the Lease Term.

          9.3.3  COMMON AREA EXPENSES.  To the extent not covered by other
                 provisions of this Lease, Tenant shall pay Tenant's
                 Proportionate Share of the following costs associated with
                 Common Areas of the Building in the manner set forth in
                 Section 9.4:

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                 (a)  All real estate taxes, including assessments, all
                      insurance costs, all sprinkler, fire, life safety
                      system utility costs and all other costs to maintain,
                      repair and replace common areas (including common area
                      signage), parking lots, sidewalks, driveways and other
                      areas used in common by the tenants of the Building
                      (including, but not limited to HVAC, signs and
                      parking), as well as personal property used in common
                      by the tenants of the Building.

                 (b)  All costs to supervise and administer the Common Areas,
                      parking lots, driveways and other areas used in common
                      by the tenant or occupants of the Building. The costs
                      shall include such fees as may be paid to a third
                      party, including management fees in connection with the
                      same and shall include, in addition, a fee to Landlord
                      to supervise and administer the same in an amount equal
                      to 15 percent of the total costs of Subsection (a) and
                      (b).

                 (c)  Any parking charges, utility subcharges, or any other
                      costs levied, assessed or imposed by or at the
                      direction of, or resulting from statutes or
                      regulations, or interpretations thereof, promulgated
                      by any governmental authority in connection with the
                      use or occupancy of the Premises or the parking
                      facilities serving the Premises.

          9.3.4  PAYMENT IN LIEU OF ACTUAL COSTS.  In lieu of the actual
                 cost of replacing the roof of the building, replacing or
                 repaving parking areas and drive aisles, and repainting all
                 or substantially all of the Building, Tenant shall pay
                 Landlord each month during the Lease Term an amount equal to
                 2 percent of the applicable Minimum Rent.

          9.4    PAYMENT OF ADDITIONAL RENT. Tenant shall pay Additional Rent
                 described in Section 9.3 or elsewhere, in the manner set
                 forth herein:

          9.4.1  ADDITIONAL MONTHLY RENT. On the Commencement Date or as soon
                 as possible thereafter, Landlord shall submit to Tenant a
                 statement of the estimated total Additional Rent owed by
                 Tenant under Section 9.3 for the period from the
                 Commencement Date to the end of the calendar year. Tenant
                 shall pay such estimated Additional Rent in monthly payments
                 equal to the amount of the Additonal Rent divided by the
                 number of full months remaining in the period from the
                 Commencement date to the end of the calendar year (the
                 "Additional Monthly Rent"). The Additional Monthly Rent
                 shall be paid concurrently with the monthly payment of the
                 Minimum rent and shall be adjusted as provided in Section
                 9.4.2 herein.

          9.4.2  ADJUSTMENTS STATEMENT. By March 1 of each year of the Lease
                 Term, Landlord shall endeavor to provide Tenant with a
                 statement showing the actual Additional Rent for the prior
                 calendar year (the "Adjustments Statement"). If the total of
                 the Additional Monthly Rent payments which the Tenant has made
                 for the prior calendar year is less than Tenant's
                 Proportionate Share of the actual Additional Rent for such
                 period, Tenant shall pay within ten days after receipt
                 of the Adjustments Statement, an amount equal to (i) the
                 deficiency for the previous calendar year, plus (ii) the
                 definiency due to Additional Monthly Rent payments made in
                 the current calendar year prior to such Additional Monthly
                 Rent being adjusted as set forth in Section 9.4.3. Failure
                 of Landlord to submit Adjustment Statements shall not be
                 deemed a waiver of Tenant's obligation to pay sums as
                 required by this Section 9.4.

          9.4.3  ADJUSTMENT OF ADDITIONAL MONTHLY RENT. The amount of
                 Additional Monthly Rent owing in the current calendar year
                 shall be adjusted concurrently with Landlord's provision of
                 the Adjustments Statement to Tenant. Taking into account the
                 actual amount of the Additional Rent for the previous
                 calendar year, Landlord shall submit to Tenant as part of
                 the Adjustments Statement (i) an estimate of the total
                 Additional Rent for the current calendar year and (ii) the
                 adjusted Additional Monthly Rent amount based on such
                 estimate.

          9.4.4  DEFICIENCY/OVERPAYMENT.  Even though the term has expired
                 and Tenant has vacated the Premises, when the final
                 determination is made of Tenant's Proportionate Share of the
                 Additional Rent for the year in which the Lease terminates,
                 Tenant shall immediately pay any deficiency between the
                 total of the Additional Monthly Rent payment made and the
                 actual Additional Rent due. Any overpayment made shall be
                 immediately rebated by Landlord to Tenant, provided there
                 are no outstanding rents or charges due. This provision
                 shall survive termination of this Lease.

          9.4.5  TENANT AUDIT.  Tenant may have performed an audit of the
                 amount or the calculation of the Additional Rent, provided
                 that (a) the Tenant shall have no right to have such an
                 audit performed for any Additional Rent unless tenant
                 provides notice of Tenant's intention to do so within 60
                 days of the date that Tenant receives the Adjustments
                 Statement related to such Additional Rent, (b) any such audit
                 shall be at Tenant's sole cost and expense, (c) the audit
                 shall be performed by a recognized independent accounting
                 firm that is not being compensated on a contingency fee
                 basis, and (d) the audit shall not unreasonably interfere
                 with the business of Landlord or its agent.

10.  MAINTENANCE, REPAIRS AND ALTERATIONS.

     10.1 LANDLORD'S OBLIGATIONS.  Landlord shall maintain and repair the
          foundations, exterior walls (excluding Paint) and the roof
          structure (excluding the roof membrane) of the Building. Except as
          otherwise required by Section 13 regarding subrogation, if any of
          this maintenance and/or repair in whole or in part because of the
          negligence or willful misconduct of Tenant, its agents or

                                       -6-

<PAGE>

                    invitees, Tenant shall pay to Landlord the reasonable
                    cost of the repairs. Except as provided by Section 14
                    regarding reconstruction, there shall be no abatement
                    of rent, and no liability of Landlord, due to any injury
                    or interference with Tenant's business arising from
                    Landlord's performance of any maintenance or repair which
                    it is required or permitted to perform. Tenant waives any
                    right which it may have under any current or future law or
                    ordinance to make repairs at Landlord's expense.

         10.2       TENANT'S OBLIGATIONS. Tenant shall, at Tenant's sole cost
                    and expense, keep in good condition and repair all portions
                    of the Premises not required to be maintained by Landlord
                    under Section 10.1, including, without limitation, the
                    maintenance, repair and replacement of any storefront, all
                    interior walls or partitions and interior portions of
                    exterior walls, doors, exterior and interior glass and
                    window casements, roof covering (but not roof structure)
                    and all utility systems within the Premises including
                    heating, ventilation and air conditioning systems ("HVAC").
                    Tenant shall, upon expiration or sooner termination of
                    this Lease, surrender the Premises to Landlord in good and
                    clean condition, ordinary wear accepted. Any damage to
                    adjacent premises caused by Tenant's use of the Premises
                    shall be repaired at the sole cost and expense of Tenant.
                    If Tenant fails to perform the maintenance, repair or
                    replacement required by this Section 10.2 or to surrender
                    the Premises in the condition required by this Section,
                    Landlord shall have the right, but not the obligation to
                    perform the necessary work at Tenant's expense, and Tenant
                    agrees to reimburse all costs incurred by Landlord.
                    Landlord shall have the right to contract for such services
                    as HVAC maintenance and bill Tenant for cost for such
                    service.

         10.3       GOVERNMENT REPAIRS. In the event any governmental agency
                    requires major repairs or modifications to be made to the
                    Premises, which repairs are the obligation of Landlord and
                    cannot, in Landlord's judgment, be justified by the Minimum
                    Rent, the Landlord shall have the right to cancel and
                    terminate this Lease by giving Tenant 90 days written
                    notice. Major repairs for purposes of this Section shall
                    be repairs or modifications with a cost exceeding six
                    months' Minimum Rent under this Lease. However, Tenant may
                    elect in writing within 15 days of Tenant's receipt of the
                    90 days notice of cancellation from Landlord to make these
                    repairs at its sole cost and expense in which event this
                    Lease shall remain in full force and effect.

         10.4       ALTERATIONS AND ADDITIONS. Tenant shall not make or permit
                    any alteration, addition or improvement to the Premises
                    without the prior written consent of Landlord. Tenant
                    shall pay any and all costs incurred by Landlord in
                    reviewing and evaluating any request for the consent
                    required by this section. Any alteration, addition or
                    improvement consented to by Landlord shall be made in a
                    good workmanlike manner at Tenant's sole cost and expense
                    and shall comply with all applicable laws, codes,
                    ordinances, rules and regulations. All alterations,
                    additions or improvements (including but not limited to
                    wall and window covering, paneling and built-in cabinet
                    work, but excluding movable furniture and trade fixtures)
                    shall at once become a part of the Premises belonging to
                    the Landlord and shall be surrendered with the Premises at
                    the expiration of this Lease, unless Landlord demands their
                    removal as set forth below. Upon expiration or sooner
                    termination of the Lease Term, Tenant shall, at Tenant's
                    sole cost and expense, with all diligence, remove any
                    alterations, additions or improvements made by Tenant and
                    designated by Landlord to be removed; provided Landlord
                    gives Tenant not less than 30 days advance written notice
                    prior to termination of this Lease. Tenant shall, at its
                    sole cost and expense, repair any damage to the Premises
                    caused by such removal. If Tenant fails to remove any such
                    alterations, additions or improvements, Landlord may do the
                    same at Tenant's expense.

11.      LIENS.

         11.1       LIENS. Tenant shall keep the Premises free from any liens
                    arising out of any work performed, materials furnished or
                    obligations incurred by Tenant, and agrees to hold
                    Landlord harmless from the same. Landlord may require, at
                    Landlord's sole option, that Tenant provide, at Tenant's
                    sole cost and expense, a materialman's labor and
                    performance bond acceptable to Landlord in an amount equal
                    to one and one-half times the estimated cost of any
                    improvements, additions or alterations to the Premises
                    which the Tenant desires to make, to insure Landlord
                    against any liability for mechanics' and materialmen's
                    liens, and to insure completion of the work.

         11.2       ENCUMBRANCES. The Tenant shall not cause or suffer to be
                    placed, filed or recorded against the title to the
                    Premises, the Building, or any part thereof, or against
                    Tenant's leasehold interest in the Premises any mortgage,
                    deed of trust, security agreement, financing statement or
                    other encumbrances. Further, in no event shall Tenant lien
                    or mortgage any leasehold improvements alterations,
                    additions or improvements thereto, except trade fixtures,
                    appliances and equipment which are owned by Tenant and
                    which are not, and which do not become a part of the
                    Premises. The form of any such mortgage, deed of trust or
                    other security agreement or financing statement which
                    includes a legal description of the Premises or the
                    Building shall be subject to Landlord's prior written
                    approval, which approval shall be subject to such conditions
                    as the Landlord may deem appropriate.

12.      HOLD HARMLESS. Tenant agrees to indemnify and hold Landlord and its
         agents harmless from any and all claims arising from the use of the
         Premises by Tenant, its agents and invitees, from the conduct of
         Tenant's business, or from any activity, work or things done or
         permitted to be done by Tenant, its agents and invitees on the
         premises or elsewhere. Tenant further agrees to indemnify and hold
         Landlord and its agents harmless from any and all claims arising
         from, in connection with, or related to any default by Tenant in the
         performance of its obligations under this Lease, or any act, omission
         or neglect of Tenant, its agents or invites. Tenant further agrees to
         indemnify and hold Landlord and its agents harmless from all costs
         (including but not limited to attorney's fees) incurred by Landlord
         in connection with its defense against any claim made against the
         Landlord as to which Tenant is required to indemnify Landlord pursuant
         to this Section. Tenant shall give prompt notice to Landlord of any
         casualty or accident in the Premises.

                                      -7-

<PAGE>

         Upon notice by Landlord, Tenant, at Tenant's expense, shall defend
         Landlord, through counsel reasonably satisfactory to Landlord in any
         action or proceeding brought against Landlord by reason of any such
         claim. Tenant further assumes all risk of, and waives and releases
         all claims against Landlord for any damages to person or property
         sustained by Tenant, or any person claiming through Tenant, which
         damage results from any accident or occurrence in or on the Premises
         from any cause whatsoever.

13.      SUBROGATION. Neither Landlord nor Tenant shall be liable to the
         other or to any insurance company (by way of subrogation or otherwise)
         insuring the other party for any loss or damage to any building,
         structure or other tangible property, or any resulting loss of income,
         or losses under worker's compensation laws and benefits, even though
         such loss or damage might have been occasioned by the negligence of
         such party, agents or employees if any such loss or damage is covered
         by insurance benefiting the party suffering such loss or damage or
         was required to be covered by insurance pursuant to this Lease.

14.      RECONSTRUCTION.

         14.1      EFFECT OF INSURED LOSS. Except as provided below, if the
                   Premises are damaged by fire or other cause covered by
                   Landlord's property insurance, Landlord agrees to repair
                   the same, and this Lease shall remain in full force and
                   effect.

         14.2      LANDLORD'S OPTIONS. Landlord shall have the option either
                   to repair or rebuild the Premises or to terminate this Lease
                   if the Premises any portion of the Building is damaged if:

                   (a)     The damage results from any cause not covered by
                           Landlord's insurance;

                   (b)     Insurance proceeds are insufficient to fully pay
                           for repair and restoration;

                   (c)     The cost to repair exceeds 25 percent of the then
                           complete replacement cost of the Premises and the
                           Building;

                   (d)     The repair or restoration, in Landlord's opinion,
                           cannot be completed within six months of the
                           damage; or

                   (e)     The damage occurs during the last 12 months of the
                           Lease Term.

                   Landlord shall exercise its option to terminate this Lease
                   by giving to Tenant, at any time within 60 days after the
                   damage, written notice of its election to terminate this
                   Lease as of the date specified in the notice. The
                   termination date shall not be less than 30 nor more than 60
                   days after the date of notice. If Landlord fails to give
                   notice within the 60 days, it shall be deemed to have
                   elected to repair or restore the damage. If Landlord
                   terminates this Lease as provided by this Section 14.2, this
                   Lease shall automatically terminate on the date specified
                   in Landlord's notice. Neither party shall have further
                   liability to the other, except for obligations which were
                   accrued and unpaid as of the date of termination specified
                   in Landlord's notice, and except that Landlord shall return
                   any unused balance of the Security Deposit to Tenant.

         14.3      RENT ABATEMENT. This Lease shall remain in full force and
                   effect if Landlord elects to repair the damage, or until the
                   termination date specified in the notice of termination, as
                   applicable, except that the Minimum Rent and any Additional
                   Rent shall be proportionately abated from the date of
                   damage until the repairs are completed, or until the
                   specified termination date, as applicable. Such
                   proportionate abatement shall be based upon the extent to
                   which the damage materially interferes with the business
                   carried on by Tenant in the Premises.

         14.4      TENANT'S REPAIR OBLIGATIONS. Landlord shall not be
                   required to repair or replace any leasehold improvements,
                   fixtures or other personal property of Tenant, all of which
                   shall be repaired or replaced promptly by Tenant.

15.      EMINENT DOMAIN.

         15.1      TOTAL OR PARTIAL TAKING. If any portion of the Premises is
                   taken or appropriated by any public or quasi-public
                   authority under the power of eminent domain, or is
                   purchased by the condemnor in lieu of condemnation
                   proceedings, either party shall have the right to terminate
                   this Lease upon 30 days written notice given to the other
                   party within 60 days after the date that possession is
                   surrendered to the condemnor. If neither party elects to
                   terminate, the Minimum Rent and any Additional Rent
                   thereafter to be paid shall be equitably reduced. If any
                   part of the Building other than the Premises is so taken or
                   appropriated, or is purchased by the condemned in lieu
                   thereof, Landlord shall have the right at its option to
                   terminate this Lease upon 30 days written notice to Tenant
                   given within 60 days after the date that possession is
                   surrendered to the condemnor.

         15.2      DAMAGES. Landlord reserves all rights to the entire damage
                   award or payment for any taking by eminent domain and Tenant
                   shall make no claim whatsoever against Landlord for damages
                   for termination of its leasehold interest in the Premises
                   or for interference with its business. Tenant hereby grants
                   and assigns to Landlord any right Tenant may now have or
                   hereafter acquire to damages related to any taking by
                   eminent domain and agrees to execute and deliver such
                   further instruments of assignment thereof as Landlord may
                   from time

                                     -8-

<PAGE>

                   to time request. Tenant shall, however, have the right to
                   claim from the condemning authority all compensation that
                   may be recoverable by Tenant on account of any loss incurred
                   by Tenant in removing Tenant's merchandise, furniture,
                   trade fixtures and equipment or for damage to Tenant's
                   business provided, however, that Tenant may claim such
                   damages only if they are awarded separately in the eminent
                   domain proceeding and not as part of Landlord damages.

16.      ASSIGNMENT AND SUBLETTING.

         16.1      RESTRICTION. Tenant shall not, without the prior written
                   consent of Landlord:

                   (a)    Voluntarily, involuntarily or by operation of law,
                          assign, transfer, mortgage, pledge, hypothecate or
                          otherwise encumber this Lease, or any interest in
                          it, or any right or privilege appurtenant to it;

                   (b)    Sublet all or any part of the Premises; or

                   (c)    Allow any other person, except the agents and
                          invitees of Tenant, to occupy or use any portion of
                          the Premises.

                   Landlord's consent may be withheld in Landlord's
                   discretion. In determining whether to consent to any
                   assignment, transfer, encumbrance or subletting, Landlord
                   may consider any commercially reasonable basis for approving
                   or disapproving any such request including, without
                   limitation, the following: (i) the experience or business
                   reputation of the proposed transferee, (ii) whether the use
                   clientele, personnel or foot traffic that will be generated
                   by the proposed transferee is consistent, in Landlord's
                   opinion, with the business of other tenants of the Building
                   at the time of the proposed transfer, and (iii)
                   notwithstanding that Tenant and others would remain liable
                   upon transfer, whether the proposed transferee has a net
                   worth and financial strength and credit record satisfactory
                   to Landlord. Any assignment, transfer, encumbrance,
                   subletting or use without Landlord's consent shall be void
                   and shall, at the option of Landlord, constitute a material
                   default under this Lease. An assignment or sublease
                   consented to by Landlord shall not be binding upon Landlord
                   unless the assignee or subtenant delivers to Landlord:

                   (a)    An original executed assignment or sublease;

                   (b)    Any collateral agreements; and

                   (c)    An instrument containing said assignee's or
                          sublessee's assumption of all of the obligations of
                          the Tenant under this Lease, in form and substance
                          satisfactory to Landlord.

                   The assignee's or sublessee's failure to execute such a
                   covenant shall not waive, release or discharge the assignee
                   or subleasee from its liability for the performance of the
                   Tenant's obligations under this Lease. Regardless of
                   Landlord's consent, no subletting or assignment shall
                   release Tenant or Guarantor of their obligations or alter
                   the primary liability of Tenant to pay rent and to perform
                   all the obligations of the Tenant under this Lease.

         16.2      COSTS. Tenant shall reimburse Landlord and Landlord's
                   agent for all attorney's fees and other costs incurred by
                   Landlord in connection with the review of and preparation
                   of documents incident to any request by Tenant for
                   Landlord's consent. Each request for Landlord's consent
                   shall be accompanied by a deposit in the amount of $200 to
                   be applied to such costs.

         16.3      INCLUDED TRANSFERS. If Tenant is a corporation,
                   partnership, limited liability company or other entity, and
                   transfer of this Lease by merger, consolidation,
                   reorganization or dissolution shall constitute a transfer
                   for the purposes of this Section. If Tenant is such an
                   entity, any change in the ownership of, or power to vote,
                   a percentage of Tenant's now-outstanding stock or ownership
                   interest which results in a change of controlling persons,
                   or any transfer of all or substantially all the assets of
                   Tenant shall constitute a transfer for the purposes of this
                   Section. If Tenant is a partnership, any partial or total
                   withdrawal of any of the present general partners, and any
                   transfer by a general partner of all or part of his
                   partnership interest shall constitute a transfer for the
                   purposes of this Section.

         16.4      JUDICIALLY IMPOSED ASSIGNMENT. If the non-assignment
                   provisions of this Section are deemed to be unenforceable
                   in any bankruptcy proceeding, Landlord and Tenant agree
                   that a showing of adequate assurance of future performance
                   by a prospective assignee of this Lease must include,
                   without limitation, clear and convincing evidence that:

                   (a)    Landlord will receive the full benefit of each and
                          every term of its bargain in this Lease, except for
                          the non-assignment and related termination clauses;

                   (b)    The Premises will continue to be used solely for
                          the use permitted by this Lease;

                   (c)    A judicially imposed assignment will not cause an
                          acceleration or increase in the interest rate on, or
                          fees in connection with, any indebtedness of
                          Landlord secured by Landlord's interest in the
                          building or this Lease; and

                                      -9-

<PAGE>

             (d)  The prospective assignee has the means, expertise
                  and experience to operate the business to be conducted upon
                  the Premises in a first-class manner.

      16.5   ASSIGNMENT BY LANDLORD.  If Landlord shall assign its interest
             under this Lease or transfer its interest in the Premises,
             Landlord shall be relieved of any obligation accruing hereunder
             after such assignment or transfer, and such transferee shall
             thereafter be deemed to be the Landlord under this Lease.
             Landlord may transfer Tenant's Security Deposit to such
             transferee and Tenant shall look solely to the transferee for the
             return of such deposit.

17.   DEFAULT.

      17.1   EVENTS OF DEFAULT.  The following events are referred to,
             collectively, as "Events of Default" or, individually, as an
             "Event of Default":

             (a)  Tenant defaults in the due and punctual payment of rent or
                  Additional Rent, and such default continues for three days
                  after written notice from Landlord; however, Tenant will
                  not be entitled to more than one written notice for
                  monetary defaults during any 12 month period, and if after
                  such written notice any rent or Additional Rent is not paid
                  when due, an Event of Default will be considered to have
                  occurred without further notice;

             (b)  Tenant vacates or abandons the Premises or fails to operate
                  its business on the Premises;

             (c)  This Lease or the Premises or any part of the Premises are
                  taken upon execution or by other process of law directed
                  against Tenant, or are taken upon or subject to any
                  attachment by any creditor of Tenant or claimant against
                  Tenant, and said attachment is not discharged or disposed
                  of within 15 days after its levy;

             (d)  Tenant files a petition in bankruptcy or insolvency or for
                  reorganization or arrangement under the bankruptcy laws of
                  the United States or under any insolvency act of any state,
                  or admits the material allegations of any such petition by
                  answer or otherwise, or is dissolved or makes an assignment
                  for the benefit of creditors;

             (e)  Involuntary proceedings under any such bankruptcy law or
                  insolvency act or for the dissolution of Tenant are
                  instituted against Tenant, or a receiver or trustee is
                  appointed for all or substantially all of the property of
                  Tenant, and such proceeding is not dismissed or such
                  receivership or trusteeship vacated within 60 days after
                  such institution or appointment, or

             (f)  Tenant makes, causes to be made or suffers to exist on the
                  Premises noise of any type (including music) that, in the
                  opinion of Landlord, could reasonably be expected to
                  interfere with the rights of quiet enjoyment of other
                  tenants in the Building or in the complex of which the
                  Premises are a part, and such default continues or occurs
                  for ten days after written notice from Landlord, however,
                  Tenant will not be entitled to more than one written notice
                  of such defaults during any 12 month period, and if after
                  such written notice a default under this provision exists
                  or occurs, an Event of Default will be considered to have
                  occurred without further notice;

             (g)  Tenant breaches any of the other agreements, terms,
                  covenants, or conditions that this Lease requires Tenant to
                  perform, and such breach continues for a period of 30 days
                  after written notice from Landlord to Tenant or, if such
                  breach cannot be cured reasonably within such 30-day
                  period, if Tenant fails to diligently commence to cure such
                  breach within 30 days after written notice from Landlord
                  and to complete such cure within a reasonable time
                  thereafter (but not to exceed 90 days).

      17.2   LANDLORD'S REMEDIES.  If any one or more Events of Default set
             forth in Section 17.1 occur, then Landlord has the right, at its
             election:

             (a)  To give Tenant written notice of Landlord's intention to
                  terminate this Lease on the earliest date permitted by law
                  or on any later date specified in such notice, in which
                  case Tenant's right to possession of the Premises will
                  cease and this Lease will be terminated, except as to
                  Tenant's liability, as if the expiration of the term fixed
                  in such notice were the end of the term;

             (b)  Without further demand or notice, to reenter and take
                  possession of the Premises or any part of the Premises,
                  repossess the same, expel Tenant and those claiming through
                  or under Tenant, and remove the effects of both or either,
                  using such force for such purposes as may be necessary,
                  without being liable for prosecution, without being deemed
                  guilty of any manner of trespass, and without prejudice to
                  any remedies for arrears of monthly rent or other amounts
                  payable under this Lease or as a result of any preceding
                  breach of covenants or conditions; or

             (c)  Without further demand or notice to cure any Event of
                  Default and to charge Tenant for the cost of effecting such
                  cure, including without limitation reasonable attorneys'
                  fees and interest on the amount so advanced at the rate of
                  15 percent per annum, provided that Landlord will have no
                  obligation to cure any such Event of Default of Tenant.

                                       -10-

<PAGE>

             Should Landlord elect to reenter as provided in Section 17.2(b),
             or should Landlord take possession pursuant to legal proceedings
             or pursuant to any notice provided by law, Landlord may, from
             time to time, without terminating this Lease, relet the Premises
             or any part of the Premises in Landlord's or Tenant's name, but
             for the account of Tenant, for such term or terms (which may be
             greater or less than the period that would otherwise have
             constituted the balance of the term) and on such conditions and
             upon such other terms (which may include concessions of free
             rent and alteration and repair of the Premises) as Landlord, in
             its reasonable discretion, may determine, and Landlord may
             collect and receive the rent. Landlord will in no way be
             responsible or liable for any failure to relet the Premises, or
             any part of the Premises, or for any failure to collect any rent
             due upon such reletting. No such reentry or taking possession of
             the Premises by Landlord will be construed as an election on
             Landlord's part to terminate this Lease unless a written notice
             of such intention is given to Tenant. No written notice from
             Landlord under this Section 17.2 or under a forcible or unlawful
             entry and detainer statute or similar law will constitute an
             election by Landlord to terminate this Lease unless such notice
             specifically so states. Landlord reserves the right following
             any such reentry or reletting to exercise its right to terminate
             this Lease by giving Tenant such written notice, in which event
             this Lease will terminate as specified in such notice.

       17.3  CERTAIN DAMAGES.  In the event that Landlord does not elect to
             terminate this Lease as permitted in Section 17.2(a), but on the
             contrary elects to take possession as provided in Section
             17.2(b), Tenant will pay to Landlord monthly rent and other sums
             as provided in this Lease that would be payable under this Lease
             if such repossession had not occurred, less the net proceeds, if
             any, of any reletting of the Premises after deducting all of
             Landlord's reasonable expenses in connection with such reletting,
             including without limitation all repossession costs, brokerage
             commissions, attorneys' fees, expenses of employees, alteration
             and repair costs, and expenses of preparation for such
             reletting. If, in connection with any reletting, the new Lease
             term extends beyond the existing term, or the Premises covered
             by such new lease include other Premises not part of the
             Premises, a fair apportionment of the rent received from such
             reletting and the expenses incurred in connection with such
             reletting as provided in this Section will be made in
             determining the net proceeds from such reletting, and any rent
             concessions will be equally apportioned over the term of the new
             lease. Tenant will pay such rent and other sums to Landlord
             monthly on the day on which the monthly rent would have been
             payable under this Lease if possession had not been retaken,
             and Landlord will be entitled to receive such rent and other
             sums from Tenant on each such day.

       17.4  CONTINUING LIABILITY AFTER TERMINATION.  If this Lease is
             terminated on account of the occurrence of an Event of Default,
             Tenant will remain liable to Landlord for damages in an amount
             equal to monthly rent and other amounts that would have been
             owing by Tenant for the balance of the term, had this Lease not
             been terminated, less the net proceeds, if any, of any
             reletting of the Premises by Landlord subsequent to such
             termination, after deducting all of Landlord's expenses in
             connection with such reletting, including without limitation the
             expenses enumerated in Section 17.3. Landlord will be entitled
             to collect such damages from Tenant monthly on the day on which
             monthly rent and other amounts would have been payable under
             this Lease if this Lease had not been terminated, and
             Landlord will be entitled to receive such monthly rent and other
             amounts from Tenant on each such day. Alternatively, at the
             option of Landlord, in the event this Lease is so terminated,
             Landlord will be entitled to recover against Tenant as damages
             for loss of the bargain and not as a penalty:

             (a)  The worth at the time of award of the unpaid rent that had
                  been earned at the time of termination;

             (b)  The worth at the time of award of the amount by which the
                  unpaid rent that 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.

             (c)  the worth at the time of award of the amount by which the
                  unpaid rent for the balance of the term of this Lease (had
                  the same not been so terminated by Landlord) after the time
                  of award exceeds the amount of such rental loss that Tenant
                  proves could be reasonably avoided; and

             (d)  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 which would be
                  likely to result therefrom.

             The "worth at the time of award" of the amounts referred to in
             (a) and (b) above is computed by adding interest at the interest
             rate of 15D percent per annum from the Termination Date until the
             time of the award. The "worth at the time of award" of the
             amount referred to in (c) above 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 percent.

       17.5  CUMULATIVE REMEDIES.  Any suit or suits for the recovery of the
             amounts and damages set forth in Sections 17.3 and 17.4 may be
             brought by Landlord, from time to time, at Landlord's election,
             and nothing in this Lease will be deemed to require Landlord
             to await the date upon which this Lease or the term would have
             expired had there occurred no Event of Default. Each right and
             remedy provided for in this Lease is cumulative and is in
             addition to every other right or remedy provided for in this
             Lease or now or after the Lease date existing at law or in
             equity or by statute or otherwise, and the exercise or beginning
             of the exercise by Landlord of any one or more of the rights or
             remedies provided for in this Lease or at law, in equity or by
             statute or otherwise will not preclude the simultaneous or later
             exercise by Landlord of any or all other rights or remedies
             provided for in this Lease or at law, in equity or by statute or
             otherwise. All costs incurred by Landlord in collecting any
             amounts and damages owing by Tenant pursuant to the provisions
             of this Lease or to

                                       -11-

<PAGE>

            enforce any provision of this Lease, including reasonable
            attorneys' fees from the date any such matter is turned over to
            an attorney, whether or not one or more actions are commenced by
            Landlord, will also be recoverable by Landlord from Tenant.

      17.6  WAIVER OF REDEMPTION.  Tenant waives any right of redemption
            arising as a result of Landlord's exercise of its remedies under
            this Article 17.

      17.7  LATE CHARGES.  Tenant acknowledges that late payment by Tenant to
            Landlord of rent and other sums due under this Lease will cause
            Landlord to incur costs not contemplated by this Lease, the exact
            amount of which will be extremely difficult to ascertain. These
            costs include, but are not limited to, processing and accounting
            charges, and late charges which may be imposed on Landlord by the
            terms of any mortgage or deed of trust covering the Premises.
            Accordingly, if any installment of rent or other sums due from
            Tenant shall not be received by Landlord or Landlord's agent
            within five days after the amount shall be due or if payment is
            made with a check that is returned for lack of sufficient funds,
            then without any requirement of notice to Tenant, Tenant shall
            pay to Landlord a late charge equal to the greater of 10 percent
            of the delinquent amount or $75, plus 1 percent per month
            interest on the delinquencies from the date due until payment.
            The parties agree that this late charge plus interest represents
            a fair and reasonable estimate of the cost Landlord will incur by
            reason of late payment by Tenant. Acceptance of the late charge by
            Landlord shall in no event constitute a waiver of Tenant's
            default with respect to the overdue amount, nor prevent Landlord
            from exercising any of the other rights or remedies granted to
            Landlord under this Lease, or at law or equity.

      17.8  DEFAULT BY LANDLORD.  Landlord shall not be in default unless
            Landlord fails to perform obligations required of Landlord within
            a reasonable time, but in any event 30 days after written notice
            by certified mail by Tenant to Landlord and to the holder of any
            first mortgage or deed of trust covering the Premises whose name
            and address shall have theretofore been furnished to Tenant in
            writing. Said notice shall specify wherein Landlord has failed to
            perform such obligation; provided, however, that if the nature of
            Landlord's obligation is such that more than 30 days are required
            for performance, then Landlord shall not be in default if
            Landlord commences performance within such 30-day period and
            thereafter diligently prosecutes the same to completion. Tenant
            further agrees not to invoke any of its remedies under this Lease
            until said 30 days have elapsed. In no event shall Tenant have
            the right to terminate this Lease as result of Landlord's default
            and Tenant's remedies shall be limited to damages and/or an
            inunction; and in no case may the Tenant withhold rent or claim a
            set-off or deduction from rent.

18.   RULES AND REGULATIONS.  Tenant shall faithfully observe and comply with
      all recorded covenants, conditions and restrictions affecting the
      Premises, all rules and regulations that Landlord may from time to time
      make to facilitate the reasonable operation of the Building of which
      the Premises are a part or the complex in which it is located or to
      comply with the requirements of any governmental entity or insurance
      company, including, without limitation, those rules and regulations
      attached to this Lease (collectively called "Rules"). Landlord
      reserves the right to modify the Rules from time to time. The Rules and
      any modifications shall be binding upon Tenant upon delivery of a copy
      of the Rules to Tenant. Landlord shall not be responsible to Tenant for
      the failure of any other tenants or occupants to comply with the Rules.

19.   HOLDING OVER.

      19.1  HOLDING OVER.  If Tenant remains in possession of the Premises or
            any part thereof, after the expiration of the Lease Term with the
            express written consent of Landlord (which consent may be
            granted, withheld or conditioned at the sole discretion of
            Landlord), such occupancy shall be a tenancy from month to month
            at a minimum rent in an amount equal to 150 percent of the last
            monthly Minimum Rent, plus all additional rent and other charges
            payable hereunder, and upon all the terms hereof applicable to a
            month-to-month tenancy.

      19.2  ABANDONMENT.  Tenant agrees not to vacate or abandon the Premises
            at any time during the Lease Term. Should Tenant vacate or
            abandon said Premises or be dispossessed by process of law or
            otherwise, such abandonment, vacation or dispossession shall be
            deemed a breach of this Lease and, in addition to any other
            rights which Landlord may have, Landlord may remove any personal
            property belonging to Tenant which remains on the Premises and
            store the same, the cost of such removal and storage to be
            Tenant's liability.

      19.3  VOLUNTARY SURRENDER.  The voluntary or other surrender of this
            Lease by Tenant, or a mutual cancellation thereof, shall not work
            a merger, but shall, at the option of Landlord, terminate all or
            any existing subleases or subtenancies, or operate as an
            assignment to it of any or all such subleases or subtenancies.

20.   ENTRY BY LANDLORD.  Landlord reserves the right to enter the Premises
      to inspect the same, to show the Premises to prospective purchasers or
      tenants, to perform any alterations, improvements, repairs or
      maintenance, to provide any services that Landlord may deem necessary or
      desirable and to do any other act permitted under this Lease. Tenant
      hereby waives all claims for damages occasioned by such entry. Landlord
      may retain a key with which to unlock all of the doors in the premises
      (excluding Tenant's vaults, safes and files). No entry by Landlord
      shall be construed or deemed to be a forcible or unlawful entry into,
      or a detainer of, the Premises, or an eviction of Tenant from all or
      any portion of the Premises.

                                       -12-

<PAGE>

21.  ESTOPPEL CERTIFICATE.  Upon not less than five days' prior written notice
     from Landlord, Tenant shall execute, acknowledge and deliver to Landlord a
     written estoppel certificate stating certain facts including, but not
     limited to:

     (a)   That this Lease is unmodified and in full force and effect (or, if
           modified, stating the nature of such modification and certifying that
           this Lease as so modified is in full force and effect);

     (b)   The date to which the Minimum Rent and other charges are paid; and

     (c)   That there are not, to Tenant's knowledge, any uncured defaults on
           the part of the Landlord (or specifying such defaults if any are
           claimed.)

     The statement shall be in any form that Landlord provides to Tenant.  Any
     such statement may be relied upon by any prospective purchaser or
     encumbrancer of all or any portion of the Building or the real property
     upon which it is located.

22.  SIGNS.  Tenant shall not place any signs or symbols in the windows or on
     the doors of the Premises or upon any part of the Building without the
     prior written consent of Landlord.  Any signs or symbols shall be in
     conformity with other signs on the Premises and the Building, the Rules,
     and all applicable laws, ordinances and regulations.  Tenant shall
     maintain any such sign or symbol in good condition and repair at its sole
     cost and expense.  Tenant shall remove such sign or symbol at its sole cost
     and expense upon termination of the Lease Term, and shall repair all damage
     caused by the removal.  If Tenant fails to remove any sign or symbol and/or
     repair any damage caused by its removal, Landlord may have the same removed
     and/or repaired at Tenant's expense.

23.  AUTHORITY; LIABILITY.

     23.1  AUTHORITY.  If Tenant is a corporation, partnership, limited
           liability company or other form of entity, each individual executing
           this Lease on behalf of said entity represents and warrants that he
           or she is duly authorized to execute and deliver this Lease on
           behalf of said entity, in accordance with a duly adopted resolution
           of the board of directors of said entity authorizing and consenting
           to this Lease; specifically authorizing the designated officers
           signing this Lease to execute, acknowledge and deliver the same
           without the consent of any other officer or officers; resolving that
           such action and execution is in accordance with the bylaws of said
           corporation; and, resolving that this Lease is binding upon said
           entity in accordance with its terms.

     23.2  LIABILITY.  If the Landlord herein is a limited or general
           partnership, it is understood and agreed that any claims by Tenant
           against Landlord shall be limited to the assets of the limited or
           general partnership, and furthermore, Tenant expressly waives any
           and all rights to proceed against the individual partners, or the
           officers, directors or shareholders of any corporate partner, except
           to the extent of their interest in said limited general partnership.

24.  GENERAL PROVISIONS.

     24.1  EXHIBITS AND ADDENDUMS.  Any exhibits and addendums attached to this
           Lease are a part hereof and are fully incorporated in this Lease by
           this reference.

     24.2  NON-WAIVER OF DEFAULT.  Landlord's waiver of any term, covenant or
           condition of this Lease shall not be deemed to be a waiver of any
           other term, covenant or condition or any subsequent default under
           the same or any other term, covenant or condition.  Landlord's
           acceptance of any sum shall not be deemed to be a waiver of any
           preceding default by Tenant, other than the failure of Tenant to pay
           the particular sum so accepted, regardless of Landlord's knowledge
           of such preceding default at the time it accepts the sum.

     24.3  JOINT OBLIGATIONS.  If there is more than one Tenant, the obligations
           of the Tenants under this Lease shall be joint and several.

     24.4  SECTION TITLES.  The Section titles of this Lease are not a part of
           this Lease and shall have no effect upon its construction or
           interpretations.

     24.5  TIME.  Time is of the essence of this Lease and each and all of its
           provisions in which performance is a factor, including, but not
           limited to, Tenant's execution of estoppel certificates and
           subordinates and Tenant reimbursements to Landlord.

     24.6  SUCCESSORS AND ASSIGNS.  The covenants and conditions of this Lease
           apply to and bind the heirs, successors, executors, administrators
           and assigns of all parties of this Lease.

     24.7  RECORDATION.  A short form memorandum may be recorded at the request
           of either party, and at the requesting party's expense.

                                     -13-
<PAGE>

     24.8  QUIET POSSESSION.  Subject to all the provisions of this Lease and
           provided Tenant pays all sums due under this Lease and observes and
           performs all of the other covenants, conditions and provisions to be
           observed and performed by Tenant, Tenant shall have quiet possession
           of the Premises for the entire Lease Term, against any adverse claim
           of Landlord or any party claiming under Landlord.

     24.9  PRIOR AGREEMENTS.  This Lease contains the full agreement of the
           parties with respect to any matter covered or mentioned in this
           Lease.  No prior agreements or understandings pertaining to any such
           matter shall be effective for any purpose.  This Lease may be amended
           or supplemented only by an agreement in writing signed by the parties
           or their respective successors in interest. 27.14.  Tenant agrees to
           make any modifications of the terms and provisions of this Lease
           required or requested by any lending institution providing financing
           for the Building, or project, as the case may be, provided that no
           such modifications will materially adversely affect Tenant's rights
           and obligations under this Lease.

     24.10 INABILITY TO PERFORM.  Except as provided in Sections 13 and 14, this
           Lease and Tenant's obligations hereunder, including Tenant's
           obligation to make payments, shall not be affected or impaired
           because Landlord is unable to fulfill any of its obligations, or is
           delayed in doing so, if such inability or delay is caused by reason
           of weather, strike, labor troubles, acts of God, or any other cause
           beyond the reasonable control of the Landlord.

     24.11 SEVERABILITY.  Any provision of this Lease which shall prove to be
           invalid, void or illegal, shall in no way affect, impair, or
           invalidate any other provision, and all other provisions shall
           remain in full force and effect.

     24.12 CUMULATIVE REMEDIES.  No remedy or election under this Lease shall be
           deemed to be exclusive but shall, whenever possible, be cumulative
           with all other remedies at law or in equity.

     24.13 CHOICE OF LAW.  This Lease shall be governed by the laws of State of
           Washington.

     24.14 ATTORNEYS' FEES.  In the event any action or proceeding is brought
           by either party against the other arising out of or in connection
           with this Lease, the prevailing party shall be entitled to recover
           its costs, including, but not limited to, reasonable attorneys' and
           accountants' fees, incurred in such action or proceedings, including
           any such costs and fees incurred on appeal, in any arbitration
           proceeding and in any bankruptcy proceeding.

     24.15 NOTICES.  All notices or demands which are required or permitted to
           be given by either party to the other under this Lease shall be in
           writing.  Except as otherwise provided in any addendum, all notices
           and demands to the Tenant shall be either personally delivered or
           sent by the U.S. Mail, registered or certified, postage prepaid,
           addressed to the Tenant at the Premises, or at the address set forth
           below, or to such other place as Tenant may from time to time
           designate in a notice to the Landlord.  Except as provided in any
           addendum, all notices and demands to the Landlord shall be either
           personally delivered or sent by U.S. Mail, registered or certified,
           postage prepaid, addressed to the Landlord at the address set forth
           below, or to such other person or place as the Landlord may from
           time to time designate in a notice to the Tenant.  Any notices sent
           by US Mail as provided above shall be deemed to have been received
           three days after deposit into the mail as set out in Section 1.11
           and 1.12.

     24.16 SUBORDINATION.  At Landlord's option, this Lease shall be subject to
           and subordinate to the lien of any existing or future mortgages or
           deeds of trust in any amount or amounts whatsoever, now or hereafter
           placed in or against the Building or the real property upon which it
           is located, and to any extensions, renewals or replacements thereof,
           without the necessity of the execution and delivery of any further
           instruments on the part of Tenant to effectuate such subordination.
           Within five days of Landlord's request, Tenant will execute and
           deliver such further instruments as Landlord deems necessary to
           evidence such subordination of this Lease.  As long as Tenant is not
           in default under this Lease, said subordination shall not disturb
           Tenant's right to possession of the Premises.

     24.17 ATTORNMENT.  In the event of foreclosure, or the exercise of the
           power of sale under any mortgage or deed of trust made by Landlord
           covering the Premises, or in the event of any sale in lieu thereof,
           Tenant shall attorn to the purchaser upon any such foreclosure or
           sale and recognize such purchaser as Landlord under this Lease;
           provided said purchaser expressly agrees in writing that, so long as
           Tenant is not in default under the Lease, Tenant's possession and
           occupancy of the Premises shall not be disturbed and said purchaser
           will thereafter perform all of the obligations of Landlord under
           this Lease.

     24.18 GUARANTOR.  In the event that there is a Guarantor of this Lease,
           Guarantor hereby agrees to jointly and severally perform all payment
           and other obligations of Tenant under this Lease.  Guarantor waives
           all suretyship defenses that would otherwise be available to
           Guarantor.

     24.19 COMPLIANCE WITH ENVIRONMENTAL LAWS.  The parties acknowledge that
           there are certain federal, state and local laws, regulations and
           guidelines now in effect and that additional laws, regulations and
           guidelines may hereafter be enacted relating to or affecting the
           Premises and the larger parcel of land upon which the demised
           Premises may be a part, concerning the impact on the environment of
           construction, land use, the maintenance and operation of structures,
           and the conduct of business.  Tenant shall not cause, or permit to
           be caused, any act or practice by negligence, or omission, or
           otherwise, that would adversely affect the environment or do
           anything or

                                     -14-
<PAGE>

           permit anything to be done that would violate any of said laws,
           regulations or guidelines.  Any violation of this covenant shall
           be an Event of Default under this Lease.  Tenant shall indemnify
           and hold Landlord harmless from any and all cost, expense, claims,
           losses, damages, fines and penalties, including reasonable
           attorneys' fees, that may in any manner arise out of or be imposed
           because of the failure of Tenant to comply with this covenant.
           The foregoing shall cover all requirements whether or not
           foreseeable at the present time and regardless of the expense
           attendant thereto.

     24.20 RIDERS AND EXHIBITS.  The Riders and Exhibits referred to in Section
           1.16 are attached to this Lease and made a part of it.

     24.21 LIMITATION ON RECOURSE.  Tenant specifically agrees to look solely
           to Landlord's interest in the Premises for the recovery of any
           judgments from Landlord.  It is agreed that Landlord (and its
           shareholders, venturers, members and partners, and their
           shareholders, venturers, members and partners and all of their
           officers, directors, and employees) will not be personally liable for
           any such judgment. The provisions contained in the preceding
           sentences are not intended to and will not limit any right that
           Tenant might otherwise have to obtain injunctive relief against
           Landlord.

     24.22 TAX CREDITS.  Landlord is entitled to claim all tax credits and
           depreciation attributable to leasehold improvements in the Premises.
           Promptly after Landlord's demand, Landlord and Tenant will prepare a
           detailed list of the leasehold improvements and fixtures and the
           respective costs for which Landlord or Tenant has paid.  Landlord
           will be entitled to all credits and depreciation for those items for
           which Landlord has paid by means of any Tenant finish allowance or
           otherwise.  Tenant will be entitled to any tax credits and
           depreciation for all items for which Tenant has paid with funds not
           provided by Landlord.

     24.23 RELOCATION OF THE PREMISES.

     24.24 LANDLORD'S FEES.  Whenever Tenant requests Landlord to take any
           action or give any consent required or permitted under this Lease,
           Tenant will reimburse Landlord for all of Landlord's reasonable
           costs incurred in reviewing the proposed action or consent, including
           without limitation reasonable attorneys', engineers' or architects'
           fees, within ten days after Landlord's delivery to Tenant of a
           statement of such costs.  Tenant will be obligated to make such
           reimbursement without regard to whether Landlord consents to any
           such proposed action.

     24.25 DISCLOSURE OF AGENCY REPRESENTATION.  At the signing of this Lease
           Agreement, Morris Piha Management Group, Inc. represented the
           Landlord.  Each party signing this document confirms that prior oral
           and/or written disclosure of agency was provided to them in this
           transaction.

     24.26 RULES OF CONSTRUCTION.  The parties agree that (a) in the event of
           any inconsistency between the provisions of Section 1 and the other
           provisions of this Lease, the other provisions of this Lease shall
           govern; (b) in the event of any inconsistency between the provisions
           of the body of this Lease and the Riders attached hereto, the
           provisions set forth in the Riders shall govern; (c) in the event of
           any ambiguity regarding which party is responsible for costs or
           expenses, Tenant shall be responsible; and (d) ambiguities shall not
           be construed against the party that drafted this Lease.

     24.27 WAIVER OF JURY TRIAL.  LANDLORD, TENANT AND GUARANTOR BY THIS
           SECTION 24.22 WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR
           COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES TO THIS LEASE AGAINST
           THE OTHER ON ANY MATTERS WHATSOEVER ARISING OUT OF OR IN ANY WAY
           CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT,
           TENANT'S USE OR OCCUPANCY OF THE PREMISES, OR ANY OTHER CLAIMS
           (EXCEPT CLAIMS FOR PERSONAL INJURY OR PROPERTY DAMAGE), AND ANY
           EMERGENCY STATUTORY OR ANY OTHER STATUTORY REMEDY.

25.  BROKERS.  Tenant warrants that it has had no dealing with any real estate
     broker or agent in connection with the negotiation of this Lease except for
     Morris Piha Management Group, Inc., and it knows of no other real estate
     broker or agent who is entitled to a commission in connection with this
     Lease.  Landlord agrees to pay Morris Piha Management Group, Inc. upon the
     execution of this Lease by both Landlord and Tenant, the Broker Fee for
     negotiating this Lease.

26.  LEGAL DOCUMENT.  Tenant understands that this is a legally binding
     contract.  Tenant has carefully read each of its provisions, and prior to
     execution of the Lease, represents and warrants that Tenant has been
     advised to discuss the legal effect of the Lease with Tenant's legal
     counsel.

                                     -15-
<PAGE>

27.  DISCLOSURE OF AGENCY REPRESENTATION.  At the signing of this Lease
     Agreement, Morris Piha Real Estate Services represents the Landlord and
     Kidder Mathews Segner/Oncor International represents the Tenant.  Each
     party signing this document confirms that prior oral and/or written
     disclosure of agency was provided to them in this transaction.

                                     -16-
<PAGE>

IN WITNESS WHEREOF, the parties have executed this instrument as of the day and
year first above written:

                                             LANDLORD:  Inter Co-Op USA No. 111

                                             By _______________________________

                                             Title ____________________________

                                             TENANT:  Freei Networks, Inc

                                             By  /s/ Robert McCausland
                                                -------------------------------

                                             Title  President/CEO
                                                   ----------------------------

                                     -17-
<PAGE>

                                             (CORPORATE NOTARY TO BE ADDED HERE)

STATE OF WASHINGTON      )
                         )ss.
COUNTY OF  King          )
          --------

On this 15TH day of November, 1999, before me, the undersigned, a Notary
Public in and for the State of Washington, duly commissioned and sworn
personally appeared Robert McCausland, to me known to be the person who
signed as CEO/President of the Freei Networks, Inc that executed the within
and foregoing instrument, and acknowledged said instrument to be the free and
voluntary act and deed of said partnership for the uses and purposes therein
mentioned, and on oath stated that He was authorized to execute said
instrument on behalf of the partnership.

      IN WITNESS WHEREOF I have hereunto set my hand and official seal the
day and year first above written.

                                                /s/ Cindy M. Black
                                       ---------------------------------------
                                       (Signature of Notary)

                                                 Cindy Black
                                       ---------------------------------------
                                       (Print or stamp name of Notary)
                                       NOTARY PUBLIC in and for the State of
                                       Washington, residing at Milton
                                                               ------
                                       My appointment expires:  11-29-99

                                      -18-
<PAGE>

                                   EXHIBIT A
                    MAP OF PREMISES AND/OR LEGAL DESCRIPTION

                                    [ DIAGRAM ]

PARCEL "CAMPUS BUSINESS CENTER"

Lots 15 and 19 of West Campus Business Park, as per Plat recorded in Volume
97 of Plats, page 78 through 82. Records of King County:

Together with that portion of Lots 20 and 21 of said Plat described as
follows:

Beginning at the Northeast corner of said Lot 20: Thence Southerly, along the
East line thereof, South 09DEG.28'57" East 374.09 Feet to the Northeast
corner of said Lot 21:
Thence Southwesterly, along the East line thereof,
South 13DEG.46'37" West 101.29 Feet, Thence leaving said East line North
09DEG.28'37" West 466.74 Feet to a point on the South margin of South
336th Street (the radial line through said point bears North 10DEG.39'11"
West);
Thence Easterly, along said margin on a curve to the right
having a radius of 1,958.00 Feet, through a central angle 01DEG.10'14" an arc
distance of 40.00 feet to the point of beginning

Situate in the County of King, State of Washington

                                      -19-

<PAGE>

                                   EXHIBIT B

                                   [DIAGRAM]

<PAGE>

TO BE MADE A PART OF THE COMMERCIAL LEASE DOCUMENT UNDER DATE OF November 15,
1999 BY AND BETWEEN INTER CO-OP USA NO.III as ("Landlord") AND FREEI NET as
("Tenant").

RIDER #28 - EARLY CANCELLATION

Provided Tenant has not been in default at any time during this Lease, Tenant
shall have the right to cancel this lease every six (6) months by providing
Landlord 60 days advance written notice of its intent to cancel. This Lease
shall continue in full force and effect in the absence of such written notice.

RIDER #29 - EARLY OCCUPANCY

Tenant may have occupancy of the Premises upon mutual execution of this
Lease. Tenant shall be responsible for payment ??? triple net charges during
the month of December 1999.

RIDER #30 - SATELLITE DISH

Tenant has the right to install a small satellite dish and antenna on the
roof at tenant's sole cost and expense. Tenant will be responsible for all
maintenance and repair and will consult with Landlord's agent if any roof
penetrations are necessary prior to such installation. At the end of the lease
term, tenant will remove the dish and leave it in the same condition as at
the time of occupancy.

RIDER #31 - HANDICAP PARKING STALL

At tenant's expense, a handicap stall will be added behind the existing roll-up
door (which will be turned into a false wall).

RIDER #32 - TENANT IMPROVEMENTS

Tenant accepts the Premises in "As Is" condition with the exception of some
paint cans left over from the previous tenant, which will be removed as soon
as practical. Additional tenant improvements as shown in Exhibit "A" are
approved by Landlord and will be done at tenant's sole cost and expense.

RIDER #33 - HVAC

The existing HVAC on the premises has been serviced regularly and should be
in good working order at the time of Tenant's possession of the Premises.
Tenant will notify Landlord within the initial 15 days of possession of the
Premises if the HVAC is in need of repair, in which case the Landlord will
repair it at its cost.

                                       -2-<PAGE>
                                                                  Exhibit 10.13
[LOGO]

November 19, 1997

Mr. Bob McCausland
Home Mortgage U.S.A.
909 S. 336th Avenue
Federal Way, WA 98003

Dear Bob:

For your records, this letter acknowledges that upon my receipt of the
deposit amount for the additional space, $3,945.67, due and payable on
December 1, 1997, your total deposit will be $23,424.34.

Sincerely,

/s/ Jeff Stock

Jeff Stock

<PAGE>

                               LEASE ADDENDUM "A"

                          Washington Mortgage Services

In addition to the existing lease dated February 18, 1997, for the premises
located at 909 S. 336th Avenue, Federal Way, WA 98003, effective December 1,
1997, the rentable premise space as indicated by the attached floor plan,
will increase by approximately 3,382 sq. ft. The total monthly base rental
rate for this space will be $3,945.67 per month. Deposit to be increased
$3,945.67.

The date and amount of the rent and expense increase will follow the terms of
and run concurrently with the original lease.

Landlord: All Services West Campus            Tenant: Washington Mortgage Svcs

By:       /s/ Jeff Stock                      By:      /s/ Robert McCausland
   -------------------------------                -----------------------------
   Jeff Stock                                     Robert McCausland

Its:                                          Its:  President
    ------------------------------                -----------------------------

         11/13/97                                      11/13/97
----------------------------------            ---------------------------------
Date                                          Date

<PAGE>

                           OFFICE BUILDING LEASE

This Lease between   All Service West Campus & Washington General Partnership
("Landlord") and   Washington Mortgage Svcs Inc., a Washington Corporation
("Tenant"), Is dated January 18th, 1997.

1. LEASE ON PREMISES

In consideration of the Rent (as defined at Section 5.4) and the provisions
of this Lease, Landlord leases to Tenant and Tenant leases from Landlord the
Premises shown by diagonal lines on the floor plan attached hereto as Exhibit
"A," and further described at Section 21. The Premises are located within the
Building and Project described in Section 2a. Tenant shall have the
non-exclusive right (unless otherwise provided herein) in common with
Landlord, other Tenants, Subtenants and invitees, to use of the Common Areas
(as defined at Section 2e).

2. DEFINITIONS

As used in this Lease, the following terms shall have the following meanings:
a. BASE RENT: $ 112,000 ($14.00) per [ILLEGIBLE]_________[/s/ INITIALS]
b. BASE YEAR: The calendar year of N/A c. Broker(s) and Sales Agent(s):
Kiddu, Mathew & Segner d. Commencement Date:
February 18th, 1997 e. Common Areas: The building lobbies,
common corridors and hallways, restrooms, garage and parking areas,
stairways, elevators and other generally understood public or common areas.
Landlord shall have the right to regulate the use of the Common Areas.

f. Expense Stop: fill in it applicable): $ N/A

g. Expiration Date: February 28th, 1999, unless otherwise sooner terminated in
accordance with the provisions of this Lease.

h. Index (Section 5.2): United State Department of Labor, Bureau of Labor
Statistics Consumer Price Index for All Urban Consumers, U.S. Average,
Subgroup "All Items" (1987 = 100).

i. Landlord's Mailing Address: 31919 1ST AVE., SOUTH, STE 100
                                      Federal Way, WA 98023

j. Tenant's Mailing Address: 909 S. 336TH Street, Ste 200
                             Federal Way, WA 98003

k. Monthly Installments of Base Rent: $ 9,333.33 per month.

l. Parking: Tenant shall be permitted, upon payment of the then prevailing
monthly rate (as set by Landlord from time to time) to park -0- cars on
a non-exclusive basis in the area(s) designated by Landlord lot parking.
Tenant shall abide by any and all parking regulations and rules established
from time to time by Landlord or Landlord's parking operator. Landlord
reserves the right to separately charge Tenant's guests and visitors for
parking.

m. Premises: That portion of the Building containing approximately 8,000
square feet of rentable area, actual sq. footage to be verified by Landlord &
Tenant /s/ [INITIALS] shown by diagonal lines on Exhibit "A", located
on the 2ND floor of the Building and known as Suite_________.

n. Project: The building of which the Premises are a part (the "Building")
and any other buildings or improvements on the real property (the "Property")
located at 909 S. 336TH Street, Ste 200
Federal Way, WA 98003 and further described at Exhibit "D".
The Project is Known as Omni Building

o. Rentable Area: As to both the Premises and the Project, the respective
measurements of floor area as may from time to time be subject to lease by
Tenant and all tenants of the Project, respectively, as determined by
Landlord and applied on a consistent basis throughout the Project.

p. Security Deposit (Article 7): $ 9,333.33

q. State: The State of Washington

r. Tenant's First Adjustment Date (Section 5.2): the first day of the
calendar month following the Commencement date plus 12 months.

s. Tenant's Proportionate Share: N/A%. Such share is a fraction, the
numerator of which is the Rentable Area of the Premises, and the denominator
of which is the Rentable Area of the Project, as determined by Landlord from
time to time. The Project consists of 1 building(s) containing a total
Rentable Area of 39,835 square feet.

t. Tenants Use Clause (Article 8): Business use only

u. Term: The period commencing on the Commencement Date and expiring at midnight
on the Expiration Date.

3. EXHIBITS AND ADDENDA

The exhibits and addenda listed below (unless lined out) are incorporated by
reference in this Lease:

Exhibit "A" - Floor Plan showing the Premises
Exhibit "B" - Site Plan of the Project [LINED OUT]
Exhibit "C" - Building Standard Work Letter [LINED OUT]
Exhibit "D" - Rules and Regulations
Exhibit "E" - Guarantee
Addenda:

                                       i

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4. DELIVERY OF POSSESSION

If any reason Landlord does not deliver possession of the Premises to Tenant
on the Commencement Date, Landlord shall not be subject to any liability for
such failure, the Expiration Date shall not change and the validity of this
Lease shall not be impaired, but Rent shall be abated until delivery of
possession, "Delivery of possession" shall be deemed to occur on the date
Landlord completes Landlord's Work as defined in Exhibit "C." If Landlord
permits Tenants to enter into possession of the Premises before the
Commencement Date, such possession shall be subject to the provisions of this
Lease, including, without limitation, the payment of Rent.

5. RENT:

1. Payment of Base Rent. Tenant agrees to pay the Base Rent for the Premises.
Monthly Installments of Base Rent shall be payable in advance on the first
day of each calendar month of the Term. If the Term begins (or ends) other
than the first (or last) day of a calendar month, the Base Rent for the
partial month shall be prorated on a per diem basis: Tenant shall pay
Landlord the first Monthly Installment of Base Rent when Tenant executes the
Lease.

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6.    INTEREST AND LATE CHANGES

If Tenant fails to pay when due any Rent or other amounts or charges which
Tenant is obligated to pay under the terms of this Lease, the unpaid amounts
shall bear interest at the maximum rate then allowed by law. Tenant
acknowledges that the late payment of any Monthly Installment of Base Rent
will cause Landlord to lose the use of that money and incur costs and
expenses not contemplated under this Lease, including without limitation,
administrative and collection costs and processing and accounting expenses,
the exact amount of which is extremely difficult to ascertain. Therefore, in
addition to interest, if any such installment is not received by Landlord
within ten (10) days from the date it is due, Tenant shall pay Landlord a
late charge equal to 5% of such installment. Landlord and Tenant agree that
this late charge represents reasonable estimate of such costs and expenses
and is fair compensation to Landlord for the loss suffered from such
nonpayment by Tenant. Acceptance of any interest or late charge shall not
constitute a waiver of Tenant's default with respect to such nonpayment by
Tenant nor prevent Landlord from exercising any other rights or remedies
available to Landlord under this Lease.

7.    SECURITY DEPOSIT

Tenant agrees to deposit with Landlord the Security Deposit set forth at
Section 2 upon execution of this Lease, as security for Tenant's faithful
performance of its obligations under this Lease. Landlord and Tenant agree
that the Security Deposit may be commingled with funds of Landlord and
Landlord shall have no obligation or liability for payment of interest on
such deposit. Tenant shall not mortgage, assign, transfer or encumber the
Security Deposit without the prior written consent of Landlord and any
attempt by Tenant to do so shall be void, without force or effect and shall
not be binding upon Landlord.

If Tenant fails to pay any Rent or other amount when due and payable under
this Lease, or fails to perform any of the terms hereof, Landlord may
appropriate and apply or use all or any portion of the Security Deposit for
Rent payments or any other amount then due and unpaid, for payment of any
amount for which Landlord has become obligated as a result of Tenant's
default or breach, and for any loss or damage sustained by Landlord as a
result of Tenant's default or breach, and Landlord may so apply or use this
deposit without prejudice to any other remedy. Landlord may have by reason of
Tenant's default or breach. If Landlord so uses any of the Security Deposit,
Tenant shall, within ten (10) days after written demand therefor, restore the
Security Deposit to the full amount originally deposited; Tenant's failure to
do so shall constitute an act of default hereunder and Landlord shall have
the right to exercise any remedy provided for at Article 27 hereof. Within
fifteen (15) days after the Term (or any extension thereof) has expired or
Tenant has vacated the Premises, whichever shall last occur, and provided
Tenant is not then in default on any of its obligations hereunder, Landlord
shall return the Security Deposit to Tenant, or if Tenant has assigned its
interest under this Lease, to the last assignee of Tenant. If Landlord sells
its interest in the Premises, Landlord may deliver this deposit to the
purchaser of Landlord's Interest and thereupon be relieved of any further
liability or obligation with respect to the Security Deposit.

8.    TENANT'S USE OF THE PREMISES

Tenants shall use the Premises solely for the purposes set forth in Tenant's
Use Clause. Tenant shall not use or occupy the Premises in violation of law
or any covenant, condition or restriction affecting the Building or Project
or the certificate of occupancy issued for the Building or Project, and
shall, upon notice from Landlord, immediately discontinue any use of the
Premises which is declared by any governmental authority having jurisdiction
to be a violation of law or the certificate of occupancy. Tenant, at Tenant's
own cost and expense, shall comply with all laws, ordinances, regulations,
rules, and/or any directions of any governmental agencies or authorities
having jurisdiction which shall, by reason of the nature of Tenant's use or
occupancy of the Premises, impose any duty upon such laws, ordinances,
regulations, rules and/or directions of any governmental agencies or
authorities having jurisdiction which shall, by reason of the nature of
Tenant's use or occupancy of the Premises, impose any duty upon Tenant or
Landlord with respect to the Premises or it's use or occupation. If judgment
of any court of competent jurisdiction or the admission by Tenant in any
action or proceeding against Tenant has violated any such laws, ordinances,
regulations, rules and/or directions so the use of the Premises shall be
deemed to be a conclusive determination of that fact as between Landlord and
Tenant. Tenant shall not do or permit to be done anything which will
invalidate or increase the cost of any fire, extended coverage or other
insurance policy covering the Building or Project and/or property located
therein, and shall comply with all rules, orders, regulations, requirements
and recommendations of the Insurance Services Office or any other
organization performing a similar function. Tenant shall promptly upon demand
reimburse Landlord for any additional premium charged for such policy by
reason of Tenant's failure to comply with the provisions of this Article.
Tenant shall not do or permit anything to be done in or about the Premises
which will in any way obstruct or interfere with the rights of other Tenants
or occupants of the Building or Project, or injure or annoy them, or use or
allow the Premises to be used for any improper, immoral, unlawful or
objectionable purpose, nor shall Tenant cause, maintain or permit any
nuisance in, on or about the Premises. Tenant shall not commit or suffer to
be committed any waste in or upon the Premises.

9.    SERVICE AND UTILITIES

Provided that Tenant is not in default hereunder, Landlord agrees to furnish
to the Premises during generally recognized business days, and during hours
determined by Landlord in its sole discretion, and subject to the Rules and
Regulations of the Building or Project, electricity for normal desk top
office equipment and normal copying equipment, and heating, ventilation and
air conditioning (*HVAC*) as required in Landlord's judgment for the
comfortable use and occupancy of the Premises. If Tenant desires HVAC at any
other time, Landlord shall use reasonable efforts to furnish such service
upon reasonable notice from Tenant and Tenant shall pay Landlord's charges
therefor on demand. Landlord shall also maintain and keep lighted the common
stairs, common entries and restrooms in the Building. Landlord shall not be
in default hereunder or be liable for any damages directly or indirectly
resulting from, nor shall the Rent be abated by reason of (I) the
installation, use or interruption of use of any equipment in connection with
the furnishing of any of the foregoing services, (II) failure to furnish or
delay in furnishing any such services where such failure or delay is caused
by accident or any condition or event beyond the reasonable control of
Landlord, or by the making of necessary repairs or improvements to the
Premises, Building or Project, or (III) the limitation, curtailment, or
rationing of, or restrictions on, use of water, electricity, gas or any other
form of energy serving the Premises, Building or Project. Landlord shall not
be liable under any circumstances for a loss of or injury to property or
business, however occurring, through or in connection with or incidental to
failure to furnish any such services. If Tenant [ILLEGIBLE] machines or
equipment in the Premises which affect the temperature otherwise maintained
by the HVAC system,

<PAGE>

Tenant shall not, without the written consent of Landlord, use any apparatus
or device in the Premises, including without limitation, electronic data
processing machines, punch card machines or machines using in excess of 120
volts, which consumes more electricity than is usually furnished or supplied
for the use of premises as general office space, as determined by Landlord,
Tenant shall not connect any apparatus with electric current except through
existing electrical outlets in the Premises. Tenant shall not consume water
or electric current in excess of that usually furnished or supplied for the
use of premises as general office space (as determined by Landlord), without
first procuring the written consent of Landlord, which Landlord may refuse,
and in the event of consent, Landlord may have installed a water meter or
electrical current meter in the Premises to measure the amount of water or
electric current consumed. The cost of any such meter and of its
installation, maintenance and repair shall be paid for by the Tenant and
Tenant agrees to pay to Landlord promptly upon demand for all such water and
electric current consumed as shown by said meters, at the rates charged for
such services by the local public utility plus any additional expense
incurred in keeping account of the water and electric current so consumed. If
a separate meter is not installed, the excess cost for such water and
electric current shall be established by an estimate made by a utility
company or electrical engineer hired by Landlord at Tenant's expense.

Landlord shall furnish elevator service, lighting replacement for building
standard lights, restroom supplies, window washing and janitor services in a
manner that such services are customarily furnished to comparable office
buildings in the area.

10.   CONDITION OF THE PREMISES

Tenant's taking possession of the Premises shall be deemed conclusive
evidence that as of the date of taking possession the Premises are in good
order and satisfactory condition, except for such matters as to which Tenant
or Landlord notice on or before the Commencement Date. No promise of Landlord
to alter, remodel, repair or improve the Premises, the Building or the
Project and no representation, express or implied, respecting any matter or
thing relating to the Premises, Building, Project or this Lease (including,
without limitation, the condition of the Premises, the Building or the
Project) have been made to Tenant by Landlord or its Broker or Sales Agent,
other than as may be contained herein or in a separate exhibit or addendum
signed by Landlord and Tenant.

11.   CONSTRUCTION, REPAIRS AND MAINTENANCE

a. Landlord's Obligations. Landlord shall perform Landlord's Work to the
Premises as described in Exhibit "C", Landlord shall maintain in good order,
condition and repair the Building and all other portions of the Premises
which are not the obligation of Tenant or of any other tenant in the Building.

b. Tenant's Obligations

(1) Tenant shall perform Tenant's Work in the Premises as described in
Exhibit "C."

(2) Tenant at Tenant's sole expense shall, except for services furnished by
Landlord pursuant to Article 9 hereof, maintain the Premises in good order,
condition and repair, including the interior surfaces of the ceilings, walls
and floors, all doors, all interior windows, all plumbing, pipes and
fixtures, electrical wiring, switches and fixtures, electrical wiring,
switches and fixtures, Building Standard furnishings and special items and
equipment installed by or at the expense of Tenant.

(3) Tenant shall be responsible for all repairs and alterations in and to
the Premises, Building and Project and the facilities and systems thereof,
the need for which arises out of (I) Tenant's use or occupancy of the
Premises, (II) the installation, removal, use or operation of Tenant's
Property (as defined in Article 13) in the Premises, (III) the moving of
Tenant's Property into or out of the Building, or (IV) the act, omission,
misuse or negligence of Tenant, its agents, contractors, employees or
invitees.

(4) If Tenant fails to maintain the Premises in good order, condition and
repair, Landlord shall give Tenant notice to do such acts as are reasonable
required to so maintain the Premises. If Tenant fails to promptly commence
such acts and diligently prosecute it to completion, then Landlord shall have
the right to do such acts and expend such funds at the expense of Tenant as
are reasonably required to perform such work. Any amount so expended by
Landlord shall be paid by Tenant promptly after demand with interest at the
prime commercial rate then being charged by Bank of America NT & SA plus two
percent (2%) per annum, from the date of such work, but not to exceed the
maximum rate then allowed by law. Landlord shall have no liability to Tenant
for any damage, inconvenience, or interference with the use of the Premises
by Tenant as a result of performing any such work.

c. Compliance with Law. Landlord and Tenant shall each do all acts required
to comply with all applicable laws, ordinances and rules of any public
authority relating to their respective maintenance obligations as set forth
herein.

d. Waiver by Tenant. Tenant expressly waives the benefits of any statute now
or hereafter in effect which would otherwise afford the Tenant the right to
make repairs at Landlord's expense or to terminate this Lease because of
Landlord's failure to keep the Premises in good order, condition and repair.

e. Load and Equipment Limits. Tenant shall not place a load upon any floor of
the Premises which exceeds, the load per square foot which such floor was
designed to carry, as determined by Landlord or Landlord's structural
engineer. The cost of any such determination made by Landlord's structural
engineer shall be paid for by Tenant upon demand. Tenant shall not install
business machines or mechanical equipment which cause noise or vibration to
such a degree as to be objectionable to Landlord or other Building tenants.

f. Except as otherwise expressly provided in this Lease, Landlord shall have
no liability to Tenant nor shall Tenant's obligations under this Lease be
reduced or abated in any manner whatsoever by reason of any inconvenience,
annoyance, interruption or injury to business arising from Landlord's making
any repairs or changes which Landlord is required or permitted

<PAGE>

g.  Tenant shall give Landlord prompt notice of any damage to or defective
condition in any part or appurtenance of the Building's mechanical,
electrical, plumbing, HVAC or other systems serving, located in, or passing
through the Premises.

h.  Upon the expiration or earlier termination of this lease, Tenant shall
return the Premises to Landlord clean and in the same condition as on the
date Tenant took possession, except for normal wear and tear. Any damage to
the Premises, including any structural damage, resulting from Tenant's use or
from the removal of Tenant's fixtures, furnishings and equipment pursuant to
Section 13b shall be repaired by Tenant at Tenant's expense.

12.  ALTERATIONS AND ADDITIONS

a.  Tenant shall not make any additions, alterations or improvements to the
Premises without obtaining the prior written consent of Landlord. Landlord's
consent may be conditioned on Tenant's removing any such additions,
alterations or improvements upon the expiration of the term and restoring the
Premises to the same condition as on the date Tenant took possession. All
work with respect to any addition, alteration or improvement shall be done in
a good and workmanlike manner by properly qualified and licensed personnel
approved by Landlord, and such work shall be diligently prosecuted to
completion. Landlord may, at Landlord's option require that any such work be
performed by Landlord's contractor, in which case the cost of such work shall
be paid for before commencement of the work. Tenant shall pay to Landlord
upon completion of any such work by Landlord's contractor, an administrative
fee of fifteen percent (15%) of the cost of the work.

b.  Tenant shall pay the costs of any work done on the Premises pursuant to
Section 12a, and shall keep the Premises, Building and Project free and clear
of liens of any kind. Tenant shall indemnify, defend against and keep
Landlord free and harmless from all liability, loss, damage, costs,
attorneys' fees and any other expense incurred on account of claims by any
person performing work or furnishing materials or supplies for Tenant or any
person claiming under Tenant.

Tenant shall keep Tenant's leasehold interest, and any additions or
improvements which are or become the property of Landlord under this Lease,
free and clear of all attachment or judgment leins. Before the actual
commencement of any work for which a claim or lien may be filed, Tenant shall
give Landlord notice of the intended commencement date a sufficient time
before that date to enable Landlord to post notices of nonresponsibility or
any other notices which Landlord deems necessary for the proper protection of
Landlord's interest in the Premises, Building or the Project, and Landlord
shall have the right to enter the Premises and post such notices at any
reasonable time.

c.  Landlord may require, at Landlord's sole option, that Tenant provide to
Landlord, at Tenant's expense, a lien and completion bond amount equal to at
lease one and one-half (1-1/2) times the total estimated cost of any
additions, alterations or improvements to be made in or to the Premises, to
protect Landlord against any liability for mechanics and materialmen's liens
and to insure timely completion of the work. Nothing contained in this
Section 12c shall relieve Tenant of its obligations under Section 12b to keep
the Premises, Building and Project free of all liens.

d.  Unless their removal is required by Landlord as provided in Section 12a,
all additions, alterations and improvements make to the Premises shall become
the property of Landlord and be surrendered with the Premises upon the
expiration of the Term; provided, however, Tenant's equipment, machinery and
trade fixtures which can be removed without damage to the Premises shall
remain the property of Tenant and may be removed, subject to the provisions
of Section 13b.

13.  LEASEHOLD IMPROVEMENTS; TENANT'S PROPERTY

a.  All fixtures, equipment, improvements and appurtenances attached to or
built into the Premises at the commencement of or during the Term, whether or
not by or at the expense of Tenant ("Leasehold Improvements"), shall be and
remain a part of the Premises, shall be the property of Landlord and shall
not be removed by Tenant, except as expressly provided in Section 13b.

b.  All movable partitions, business and trade fixtures, machinery and
equipment, communications equipment and office equipment located in the
Premises and acquired by or for the account of Tenant, without expense to
Landlord, which can be removed without structural damage to the Building, and
all furniture, furnishings and other articles of movable personal property
owned by Tenant and located in the Premises (collectively "Tenant's
Property") shall be and shall remain the property of Tenant and may be
removed by Tenant of any time during the Term; provided that if any of
Tenant's Property is removed, Tenant shall promptly repair any damage to the
Premises or to the Building resulting from such removal.

14.  RULES AND REGULATIONS

Tenant agrees to comply with (and cause its agents, contractors, employees
and invitees to comply with the rules and regulations attached hereto as
Exhibit "D" and with such reasonable modifications thereof and additions
hereto as Landlord may from time to time make. Landlord shall not be
responsible for any violation of said rules and regulations by other tenants
or occupants of the Building or Project.

15.  CERTAIN RIGHTS RESERVED BY LANDLORD

Landlord reserves the following rights, exercisable without liability to
Tenant for (a) damage or injury to property, person or business, (b) causing
an actual or constructive eviction from the Premises, or (c) disturbing
Tenant's use or possession of the Premises:

a.   To name the building and Project and to change the name or street
address of the Building or Project;

b.   To install and maintain all signs on the exterior and interior of the
Building and Project;

c.   To have pass keys to the Premises and all doors within the Premises,
excluding Tenant's vaults and safes;

d.   At any time during the Term, and on reasonable prior notice to Tenant,
to inspect the Premises, and to show the Premises to any prospective
purchaser or mortgagee of the Project, or to any assignee of any mortgage on
the Project, or to others having an interest in the Project or Landlord, and
during the last six months of the term, to show the Premises to prospective
Tenants.

<PAGE>

e.   To enter the Premises for the purpose of making inspections, repairs,
alterations, additions or improvements to the Premises or the Building
(including, without limitation, checking, calibrating, adjusting or balancing
controls and other parts of the HVAC system), and to take all steps as may be
necessary or desirable for the safety, protection, maintenance or
preservation of the Premises or the Building or Landlord's interest therein,
or as may be necessary or desirable for the operation or improvement of the
Building or in order to comply with laws, orders or requirements of
governmental or other authority. Landlord agrees to use its best efforts
(except in an emergency) to minimize interference with Tenant's business in
the Premises in the course of any such entry.

16.  ASSIGNMENT AND SUBLETTING

Assignment of this Lease or sublease of all or any part of the Premises shall
be permitted, except as provided for in Article 16.

a.   Tenant shall not, without the prior written consent of Landlord, assign
or hypothecate this Lease or any interest herein or sublet the Premises or
any part thereof, or permit the use of the Premises by any party other than
Tenant. Any of the foregoing acts without such consent shall be void and
shall, at the option of Landlord, terminate this Lease. This lease shall not,
nor shall any interest of Tenant herein, be assignable by operation of law
without the written consent of Landlord.

b.   If at any time or from time to time during the Term Tenant desires to
assign this Lease or sublet all or any part of the Premises, Tenant shall
give notice to landlord setting forth the terms and provisions of the
proposed assignment or sublease, and the identity of the proposed assignee or
subtenant. Tenant shall promptly supply Landlord  with such information
concerning the business background and financial condition of such proposed
assignee or subtenant as Landlord may reasonably request. Landlord shall have
the option, exercisable by notice given to Tenant within twenty (20) days
after Tenant's notice is given, either to sublet such space from Tenant at
the rental and on the other terms set forth in this Lease of the term, set
forth in Tenant's notice, or, in the case of an assignment, to terminate this
Lease, If Landlord does not exercise such option, Tenant may assign the Lease
or sublet such space to such proposed assignee or subtenant on the following
further conditions:

(1)  Landlord shall have the right to approve such proposed assignee or
subtenant, which approval shall not be unreasonably withheld;

(2)  The assignment or sublease shall be on the same terms set forth in the
notice given to Landlord;

(3)  No assignment or sublease shall be valid and no assignee or subleasee
shall take possession of the Premises until an executed counterpart of such
assignment or sublease has been delivered to Landlord;

(4)  No assignee or subleasee shall have a further right to assign or sublet
expect on the terms herein contained; and

(5)  Any sums or other economic consideration received by Tenant as a result
of such assignment or subletting, however denominated under the assignment or
sublease, which exceed, in the aggregate, (I) the total sums which Tenant is
obligated to pay Landlord under this Lease (prorated to reflect obligations
allocable to any portion of the Premises subleased), plus (II) any real
estate brokerage commissions or fees payable in connection with such
assignment  or subletting, shall be paid to landlord as additional rent under
this Lease without affecting or reducing any other obligations of Tenant
hereunder.

c.   Notwithstanding the provisions of paragraphs a and b above, Tenant may
assign this Lease or sublet the premises, or any portion thereof, without
Landlord's consent and without extending any recapture or termination option
to Landlord, to any corporation which controls, is controlled by or is under
common control with Tenant, or to any corporation resulting from a merger or
consolidation with Tenant, or to any person or entity which acquires all the
assets of Tenant's business as a going concern, provided that (I) the
assignee or subleasee assumes, in full, the obligations of Tenant under this
Lease, (II) Tenant remains fully liable under this Lease, and (III) the use
of the Premises under Article 0 remains unchanged.

d.   No subletting or assignment shall release Tenant or Tenant's obligations
under this Lease or alter the primary liability of the Tenant to pay the Rent
and to perform all other obligations to be performed by Tenant hereunder. The
acceptance of Rent by Landlord from any other person shall not be deemed to
be a waiver by Landlord of any provision hereof. Consent to one assignment or
subletting shall not be deemed consent to any subsequent assignment or
subletting. In the event of default by an assignee or subtenant of Tenant or
any successor of Tenant in the performance of any of the terms hereof,
Landlord may proceed directly against Tenant without the necessity of
exhausting remedies against such assignee, subtenant or successor. Landlord
may consent to subsequent assignments of the Lease or sublettings or
amendments or modifications to the Lease with assignees of Tenant, without
notifying Tenant, or any successor of Tenant, and without obtaining its or
their consent thereto and any such actions shall not relieve Tenant of
liability under this Lease.

e.   If Tenant assigns the Lease or sublets the Premises or requests the
consent of Landlord to any assignment or subletting or it Tenant requests the
consent of Landlord for any act that Tenant proposes to do, then Tenant
shall, upon demand, pay Landlord an administrative fee of One Hundred Fifty
and No/100ths ($150.00) plus any attorneys fees reasonably incurred by
Landlord in connection with such act or request.

17.  HOLDING OVER

If after expiration of the Term, or extentions hereof, Tenant remains in
possession of the Premises with Landlord's permission (express or implied),
Tenant shall become a Tenant from month to month only, upon all the
provisions of this lease (except to Term and Base Rent), but the "Monthly
Installments of Base Rent" payable by Tenant shall be increase to one hundred
fifty percent (150%) of the Monthly Installments of Base Rent payable by
Tenant at the expiration of a Term. Such monthly rent shall be payable in
advance on or before the first day of each month. If either party desires to
terminate such month to month tenancy, it shall give the other party not less
that thirty (30) days advance written notice of the date of termination.

18.  SURRENDER OF PREMISES

A Tenant shall peaceably surrender the Premises to Landlord on the Expiration
Date, in broom-clean condition and in as good condition as which Tenant took
possession, except for (I) reasonable wear and tear, (II) loss by fire or
other casualty, and

<PAGE>
b. If tenant abandons or surrenders the Premises, or is dispossessed by
process of law or otherwise, any of Tenant's Property left on the Premises
shall be deemed to be abandoned, and, at Landlord's option, title shall pass
to Landlord under this Lease as by a bill of sale. If Landlord elects to
remove all or any part of such Tenant's Property, the cost of removal,
including repairing any damage to the Premise or Building caused by such
removal, shall be paid by Tenant. On the Expiration Date Tenant shall
surrender all keys to the Premises.

19. DESTRUCTION OR DAMAGE

a. If the premises or the portion of the Building necessary for Tenant's
occupancy is damaged by fire, earthquake or other Acts of God, the elements
or other casualty, Landlord shall, subject to the provision of this Article,
promptly repair the damage. If such repairs can, in Landlord's opinion, be
completed within ninety (90) days. If Landlord determines that repairs can be
completed within ninety (90) days, this Lease shall remain in full force and
effect, except that if such damage is not the result of the negligence or
willful misconduct of Tenant or Tenant's agents, employees, contractors,
licensees or invitees, the Base Rent shall be abated to the extent Tenant's
use of the premises is impaired, commencing with the date of damage and
continuing until completion of the repairs required of Landlord under Section
10d.

b. If in Landlord's opinion, such repairs to the Premises or portion of the
Building necessary for Tenant's occupancy cannot be completed within ninety
(90) days, Landlord may elect, upon notice to Tenant given within thirty (30)
days after the date of such fire or other casualty, to repair such damage, in
which event this Lease shall continue in full force and effect, but the Base
Rent shall be partially abated as provided in Section 10a. If Landlord does
not so elect to make such repairs, this Lease shall terminate as of the date
of such fire or other casualty.

c. If any other portion of the Building or Project is totally destroyed or
damaged to the extent that in Landlord's opinion repair thereof cannot be
completed within ninety (90) days. Landlord may elect upon notice to Tenant
given within thirty (30) days after the date of such fire or other casualty,
to repair such damage. In which event this Lease shall continue in full force
and effect, but the Base Rent shall be partially abated as provided in Section
19a. If Landlord does not elect to make such repairs, this Lease shall
terminate as of the date of such fire or other casualty.

d. If the Premises are to be repaired under this Article, Landlord shall
repair at its cost any injury or damage to the Building and Building Standard
work in the Premises. Tenant shall be responsible at its sole cost and
expense for the repair, restoration and replacement of any other Leasehold
improvements and Tenant's Property. Landlord shall not be liable for any loss
of business, inconvenience or annoyance arising from any repair or
restoration of any portion of the Premises, Building or Project as a result
of any damage from fire or other casualty.

e. This Lease shall be considered an express agreement governing any case of
damage to or destruction of the Premises, Building or Project by fire or
other casualty, and any present or future law which purports to govern the
rights of Landlord and Tenant in such circumstances in the absence of express
agreement, shall have no application.

20. EMINENT DOMAIN

a. If the whole of the Building or Premises is lawfully taken by condemnation
or in any other manner for any public or quasi-public purpose, this Lease
shall terminate as of the date of such taking, and Rent shall be prorated to
such date. If less than the whole of the Building or Premise is so taken,
this Lease shall be unaffected by such taking, provided that (I) Tenant shall
have the right to terminate this Lease by notice to Landlord given within
ninety (90) days after the date of such taking if twenty percent (20%) or
more of the Premises is taken and the remaining area of the Premises is not
reasonably sufficient for Tenant to continue operation of its business, and
(II) Landlord shall have the right to terminate this Lease by notice to
Tenant given within ninety (90) days after the date of such taking. If either
Landlord or Tenant so elects to terminate this Lease, the Lease shall
terminate on the thirtieth (30) day after either such notice. The Rent shall
be prorated to the date of termination. If this Lease continues in force upon
such partial taking, the Base Rent and Tenant's Proportionate Share shall be
equitably adjusted according to the remaining Rentable Area of the Premises
and Project.

b. In the event of any taking, partial or whole, all of the proceeds of any
award, judgment or settlement payable by the condemning authority shall be
the exclusive property of Landlord, and Tenant hereby assigns to Landlord all
of its right, title and interest in any award, judgment or settlement from
the condemning authority, Tenant, however, shall have the right, to the
extent that Landlord's award is not reduced or prejudiced, to claim from the
condemning authority (but not from Landlord) such compensation as may be
recoverable by Tenant in its own right for relocation expenses and damage to
Tenant's personal property.

c. In the event of a partial taking of the Premises which does not result in
a termination of this Lease, Landlord shall restore the remaining portion of
the Premises as nearly as practicable to its condition prior to the
condemnation or taking, but only to the extent of Building Standard Work.
Tenant shall be responsible at its sole cost and expense for the repair,
restoration and replacement of any other Leasehold improvements and Tenant's
Property.

21. INDEMNIFICATION

a. Tenant shall indemnify and hold Landlord harmless against and from
liability and claims of any kind for loss or damage to property of tenant or
any other person, or for any injury to or death of any person, arising out
of: (1) Tenant's use and occupancy of the Premises, or any work, activity or
other things allowed or suffered by Tenant, to be done in; on or about the
Premises; (2) any breach or default by Tenant of any of Tenant's obligations
under this Lease; or (3) any negligent or otherwise tortious act or omission
of Tenant, its agents, employees, invitees or contractors. Tenant shall, at
Tenant's expense, and by counsel satisfactory to Landlord, defend Landlord in
any action or proceeding arising from any such claim and shall indemnify
Landlord against all costs, attorneys' fees, expert witness fees and any
other expenses incurred in such action or proceeding. As a material part of
the consideration for Landlord's execution of this Lease, Tenant hereby
assumes all risk of damage or injury to any person or property in, on or
about the Premises from any cause.

b. Landlord shall not be liable for injury or damage which may be sustained
by the person or property of Tenant, its employees, invitees or customers, or
any other person in or about the Premises, caused by or resulting from fire,
steam, electricity, gas, water or rain which may leak or flow from or into
any part of the Premises, or from the breakage, leakage, obstruction or other
defects of pipes, sprinklers, wires, appliances, plumbing, air conditioning
or lighting fixtures, whether such damage or injury results from conditions
arising upon the Premises or upon other portions of the Building or Project
???.

<PAGE>

22. TENANT'S INSURANCE

a. All insurance required to be carried by Tenant hereunder shall be issued
by responsible insurance companies acceptable to Landlord and Landlord's
lender and qualified to do business in the State. Each policy shall name
Landlord, and at Landlord's request any mortgagee of Landlord, as an
additional insured, as their respective interests may appear. Each policy
shall contain (I) a cross-liability endorsement, (II) a provision that such
policy and the coverage evidenced thereby shall be primary and
non-contributing with respect to any policies carried by Landlord and that
any coverage carried by Landlord shall be excess insurance, and (III) a
waiver by the insurer of any right of subrogation against Landlord, its
agents, employees and representatives, which arises or might arise by reason
of any payment under such policy or by reason of any act or omission of
Landlord, its agents, employees or representatives. A copy of each paid up
policy (authenticated by the insurer) or certificate of the insurer
evidencing the existence and amount of each insurance policy required
hereunder shall be delivered to Landlord before the date Tenant is first given
the right of possession of the Premises, and thereafter within thirty (30)
days after any demand by Landlord there for, Landlord may, at any time and
from time to time, inspect and/or copy any insurance policies required to be
maintained by Tenant hereunder. No such policy shall be cancellable except
after twenty (20) days written notice to Landlord and Landlord's Lender.
Tenant shall furnish Landlord with renewals or "binders" of any such policy
at least ten (10) days prior to the expiration thereof. Tenant agrees that if
Tenant does not take out and maintain such insurance, Landlord may (but shall
not be required to) procure said insurance on Tenant's behalf and charge the
Tenant the premiums together with a twenty-five percent (25%) handling
charge, payable upon demand. Tenant shall have the right to provide such
insurance coverage pursuant to blanket policies obtained by the Tenant,
provided such blanket policies expressly afford coverage to the Premises,
Landlord, Landlord's mortgagee and Tenant as required by this Lease.

b. Beginning on the date Tenant is given access to the Premises for any
purpose and continuing until expiration of the Term, Tenant shall procure,
pay for and maintain in effect policies of casualty insurance covering (1)
all Leasehold improvements (including any alterations, additions or
improvements as may be made, by Tenant pursuant to the provisions of Article
12 hereof), and (II) trade fixtures, merchandise and other personal property
from time to time in, on or about the Premises, in an amount not less than
one hundred percent (100%) of their actual replacement cost from time to time,
providing protection against any peril included with the classification "Fire
and Extended Coverage" together with insurance against sprinkler damage,
vandalism and malicious mischief. The proceeds of such insurance shall be
used for the repair or replacement of the property so insured. Upon
termination of this Lease following a casualty as set forth herein, the
proceeds under (1) shall be paid to Landlord, and the proceeds under (II)
above shall be paid to Tenant.

c. Beginning on the date Tenant is given access to the Premises for any
purpose and continuing until expiration of the Term, Tenant shall procure,
pay for and maintain in effect workers compensation insurance as required by
law and comprehensive public liability and property damage insurance with
respect to the construction of improvements on the Premises, the use,
operation or condition of the Premises and the operations of Tenant in, on or
about the Premises, providing personal injury and broad form property damage
coverage for not less than One Million Dollars ($1,000,000.00) combined
single limit for bodily injury, death and property damage liability.

d. Not less than every three (3) years during the term, Landlord and Tenant
shall mutually agree to increases in all of Tenant's insurance policy limits
for all insurance to be carried by Tenant as set forth in this Article. In
the event Landlord and Tenant cannot mutually agree upon the amounts of said
increases, then Tenant agrees that all insurance; policy limits as set forth
in this article shall be adjusted for increases in the cost of living in the
same manner as is set forth in Section 5.2 hereof for the adjustment of the
Base Rent.

23. WAIVER OF SUBROGATION

Landlord and Tenant each hereby waive all rights of recovery against the
other and against the officers, employees, agents and representatives of the
other, on account of loss by or damage to the waiving party or its property
of the property of others under its control, to the extent that such loss or
damage is insured against under any fire and extended coverage insurance
policy which either may have in force at the time of the loss or damage.
Tenant shall upon obtaining the policies of insurance required under this
Lease, give notice to the insurance carrier or carriers that the foregoing
mutual waiver of subrogation is contained in this Lease.

24. SUBORDINATION AND ATTORNMENT

Upon written request of Landlord, or any first mortgagee or first deed of
trust beneficiary of Landlord, or ground Lessor of Landlord, Tenant shall, in
writing, subordinate its rights under this Lease to the lien of any first
mortgage or first deed of trust, or to the interest of any lease in which
Landlord is leasee, and to all advances made or hereafter to be made
thereunder.  However before signing any subordination agreement, Tenant shall
have to right to obtain from any lender or lessor of Landlord requesting such
subordination, an agreement in writing providing as long as Tenant is not in
default hereunder, this Lease shall remain in effect for the full Term. The
holder of security interest may, upon written notice to Tenant, elect to have
this Lease prior to its security interest regardless of the time of the
granting or recording of such security interest.

In the event of any foreclosure sale, transfer in lieu of foreclosure or
termination of the lease in which Landlord, its Lessee, Tenant may attorn to
the purchaser, transferee or Lessor as the case may be, and recognize that
party as Landlord under this Lease, provided such party acquires and accepts
the Premises subject to this Lease.

25. TENANT ESTOPPEL CERTIFICATES

Within ten (10) days after written request from Landlord, Tenant shall
execute and deliver to Landlord or Landlord's designee, a written statement
certifying (a) that this Lease is unmodified and in full force and effect, or
is in full force and effect as modified and stating the modifications; (b)
the amount of Base Rent and the date to which Base Rent and additional rent
have been paid in advance; (c) the amount of any security deposited with
Landlord; and (d) that Landlord is not in default hereunder or, if Landlord
is claimed to be in default, stating the nature of any claimed default. Any
such statement may be called upon by a purchaser, assignee or lender.
Tenant's failure to execute and deliver such statement within the time
required shall at Landlord's election be a default under this Lease and shall
also be conclusive upon ???

<PAGE>

26.   TRANSFER OR LANDLORD'S INTEREST

In the event of any sale or transfer by Landlord of the Premises, Building or
Project, and assignment of this Lease by Landlord, Landlord shall be and is
hereby entirely freed and relieved of any and all liability and obligations
contained in or derived from this Lease arising out of any act, occurrence or
omission relating to the Premises, Building, Project or Lease occurring after
the consummation of such sale or transfer, providing the purchaser shall
expressly assume all of the covenants and obligations of Landlord under this
Lease. If any security deposit or prepaid Rent has been paid by Tenant,
Landlord may transfer the security deposit or prepaid Rent to Landlord's
successor and upon such transfer, Landlord shall be relieved of any and all
further liability with respect thereto.

27.   DEFAULT

27.1  TENANT'S DEFAULT. The occurrence of any one or more of the following
events shall constitute a default and breach of this Lease by Tenant:

      a.  If Tenant abandons or vacates the Premises; or

      b.  If Tenant fails to pay any Rent or any other charges required to
be paid by Tenant under this Lease and such failure continues for five (10)
days after such payment is due and payable; or

      c.  If Tenant fails to promptly and fully perform any other covenant,
condition or agreement contained in this Lease and so failure continues for
thirty (30) days after written notice thereof from Landlord to Tenant; or

      d.  If a writ of attachment or execution is levied on this Lease or on
any of Tenant's Property; or

      e.  If Tenant makes a general assignment for the benefit of creditors,
or provides for an arrangement, composition, extension or adjustment with
its creditors; or

      f.  If Tenant files a voluntary position for relief or if a petition
against Tenant is a proceeding under the federal bankruptcy laws or other
insolvency laws is filed and not withdrawn or dismissed within forty-five
(45) days hereafter, or if under the provisions of any law providing for
reorganization or winding up of corporations, any court of competent
jurisdiction assumes jurisdiction, custody or control of Tenant or any
substantial part of its property and such jurisdiction, custody or control
remains in force unrelinquished, unstayed or unterminated for a period of
forty-five (45) days; or

      g.  If in any proceeding or action in which Tenant is a party, a
trustee, receiver, agent or custodian is appointed to take charge of the
Premises or Tenant's Property (or has the authority to do so) for the Purpose
of enforcing a lien against the Premises or Tenant's Property; or

      h.  If Tenant is a partnership or consists of more than one (1) person
or entity, if any partner of the partnership or other person or entity is
involved in any of the acts or events described in subparagraphs d through g
above.

27.2  REMEDIES. In the event of Tenant's default hereunder, then in addition
to any other rights or remedies Landlord may have under any law, Landlord
shall have the right, at Landlord's option, without further notice or demand
of any kind to do the following:

      a.  Terminate this Lease and Tenant's right to possession of the
Premises and reenter the Premises and take possession thereof, and Tenant
shall have no further claim the Premises or under this Lease; or

      b.  Continue this Lease in effect, reenter and occupy the Premises for
the account of Tenant, and collect any unpaid Rent or other changes which
have or thereafter become due and payable; or

      c.  Reenter the Premises under the provisions of subparagraph b, and
thereafter elect to terminate this Lease and Tenant's right to possession of
the Premises.

If Landlord reenters the Premises under the provisions of subparagraphs b or
c above, Landlord shall not be deemed to have terminated this Lease or the
obligation of Tenant to pay any Rent or other changes thereafter accruing,
unless Landlord notifies Tenant in writing of Landlord's election to
terminate this Lease. In the event of any reentry or retaking of possession
by Landlord, Landlord shall have the right, but not the obligation, to remove
all or any part of Tenant's Property in the Premises and to place such
property in storage at a public warehouse at the expense and risk of Tenant.
If Landlord elects to relet the premises for the account of Tenant, the rent
received by Landlord from such reletting shall be applied as follows; first,
to the payment of any indebtedness other than rent due hereunder from Tenant
to Landlord; second, to the payment of any costs of such reletting third, to
the payment of the cost of any alterations or repairs to the Premises; fourth
to the payment of rent due and unpaid hereunder; and the balance, if any,
shall be held by Landlord and applied in payment of future Rent as it become
due. If that portion of rent received from the reletting which is applied
against the Rent due hereunder is less than the amount of the Rent due,
Tenant shall pay the deficiency to Landlord promptly upon demand by Landlord.
Such deficiency shall be calculated and paid monthly. Tenant shall also pay
to Landlord, as soon as determined, any costs and expenses incurred by
Landlord in connection with such reletting or in making alterations and
repairs to the Premises, which are not covered by the rent received from the
reletting.

Should Landlord elect to terminate this Lease under the provisions of
subparagraph a or c above, Landlord may recover as damages from Tenant the
following:

      1.  PAST RENT. The worth at the time of the award of any unpaid Rent
which had been earned at the time of termination; plus

      2.  RENT PRIOR TO AWARD. The worth at the time of the award of the
amount by which the unpaid Rent 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; plus

      3.  RENT AFTER AWARD. The worth of the time of the award of the amount
by which the unpaid Rent for the balance of the Term

<PAGE>

      4.  PROXIMATELY CAUSED DAMAGES. Any other amount necessary to
compensate Landlord for all detriment proximately caused by Tenant's failure
to perform its obligations under this Lease or which in the ordinary course
of things would be likely to result therefrom, including, but not limited to,
any costs or expenses (including attorney's fees), incurred by Landlord in
(a) retaking possession of the Premises, (b) maintaining the Premises after
Tenant's default, (c) preparing the Premises for reletting to a new tenant,
including any repairs or alterations and (d) reletting the Premises,
including brokers' commissions.

"The worth at the time of the award" as used in subparagraphs 1 and 2 above,
is to be computed by allowing interest at the rate of ten percent (10%) per
annum. "The worth at the time of the award" as used in subparagraph five is
to be computed by discounting the amount at the discount rate of the Federal
Reserve Bank situated nearest to the Premises at the time of the award plus
one percent (1%).

The waiver by Landlord of any breach of any term, covenant or condition of
this Lease shall not be deemed a waiver of such term, covenant or condition
or of any subsequent breach of the same or any other term, covenant or
condition. Acceptance of Rent by Landlord subsequent to any breach hereof
shall not be deemed a waiver of any preceding breach other than the failure
to pay the particular Rent so accepted, regardless of Landlord's knowledge of
any breach at the time of such acceptance of Rent. Landlord shall not be
deemed to have waived any term, covenant or condition unless Landlord gives
Tenant written notice of such waiver.

LANDLORD'S DEFAULT. If Landlord fails to perform any covenant, condition or
agreement contained in this Lease within thirty (30) days after receipt of
written notice from Tenant specifying such default, or if such default cannot
reasonable be cured with thirty (30) days. If Landlord fails to commence to
cure within that thirty (30) day period, then Landlord shall be liable to
Tenant for any damages sustained by Tenant as a result of Landlord's breach;
provided, however, it is expressly understood and agreed that if Tenant
obtains a money judgement against Landlord resulting from any default or
other claim arising under this Lease, that judgment shall be satisfied only
if the rents, issues, profits, and other income actually received on account
of Landlord's right, title and interest in the Premises, Building or Project,
and no other real, personal or mixed property or Landlord (or of any of the
Partners which comprise Landlord, if any) wherever situated shall be subject
of levy to satisfy such judgment. After notice to Landlord of default,
Landlord (or any first mortgagee or first deed of trust beneficiary of
Landlord) fails to cure the default as provided herein, than Tenant shall
have the right to cure that default at Landlord's expense. Tenant shall not
have the right to terminate this Lease or to withhold, reduce or offset any
amount against any payments of Rent or any other charges due and payable
under this Lease except as otherwise specifically provided herein.

28.   BROKERAGE FEES

Tenant warrants and represents that it has not dealt with any real estate
broker or agent in connection with this Lease or its negotiation except
Broker and Sales Agent. Tenant shall indemnify and hold Landlord harmless
from any cost, expense or liability (including costs of suit and reasonable
attorneys' fees) for any compensation, commission or fees claimed by any
other real estate broker or agent on connection with this Lease or its
negotiation by reason of any act of Tenant.

29.   NOTICES.

All approvals and demands permitted or required to be given under this Lease
shall be in writing and deemed duly served or given if personally delivered
or sent by certified or registered U.S. mail, postage prepaid, and addressed
as follows: (a) if to Landlord, to Landlord's Mailing Address and to the
Building manager, and (b) if to Tenant, to Tenant's Mailing Address;
provided, however, notices to
Tenant shall be deemed duly served or given, delivered or mailed to Tenant at
the Premises. Landlord and Tenant may from time to time by notice to the
other designated another place for receipt of future notices.

30.   GOVERNMENT ENERGY OR UTILITY CONTROLS

In the event of imposition of federal, state or local government controls,
rules, regulations, or restrictions on the use consumption of energy or other
utilities during the Term, both Landlord and Tenant shall be bound thereby.
In the event of a difference in interpretation by Landlord and Tenant of any
such controls, the interpretation of Landlord shall prevail, and Landlord
shall have the right to enforce compliance therewith, including the right of
entry into the Premises to effect compliance.

<PAGE>

33.  OBSERVANCE OF LAW.

Tenant shall not use the Premises or permit anything to be done in or about
the Premises which will in any way conflict with any law, statute, ordinance
or governmental rule or regulations now in force or which may hereafter be in
force, with the requirements of any board of fire insurance underwriters or
other similar bodies now or hereafter constituted, related to or affecting by
Tenant's improvements or acts.  The judgment of any court of competent
jurisdiction or the admission of Tenant in any action against Tenant, whether
Landlord is a party thereto or not, that Tenant violated any law, statute,
ordinance or governmental rule, regulation or requirement, shall be
conclusive of that fact as between Landlord and Tenant.

34.  FORCE MAJEURE.

Any prevention, delay or stoppage of work to be performed by Landlord or
Tenant which is due to strikes, labor, disputes inability to obtain labor,
materials, equipment or reasonable substitutes therefor, acts of God,
governmental restrictions or regulations or controls, judicial orders, enemy
or hostile governmental actions, civil commotion, or other casualty, or other
casualty beyond the reasonable control of the party obligated to perform
hereunder, shall excuse performance of the work by that party for a period
equal to the duration of that prevention, delay or stoppage.  Nothing in this
Article 34 shall excuse or delay Tenant's obligation to pay Rent or other
charges under this Lease.

35.  CURING TENANT'S DEFAULTS

If Tenant defaults in the performance of any of its obligations under this
Lease, Landlord may (but shall not be obligated to) without waiving such
default, perform the same for the account and at the expense of Tenant,
Tenant shall pay Landlord all costs of such performance promptly upon receipt
of a bill therefor.

36.  SIGN CONTROL.

Tenant shall not affix, paint, erect or inscribe any sign, projection,
awning, signal or advertisement of any kind to any part of the Premises,
Building or Project, including without limitation, the inside or outside of
windows or doors without the written consent of Landlord.  Landlord shall
have the right to remove any signs or other matter, installed without
Landlord's permission, without being liable to Tenant by reason of such
removal, and to charge the cost of removal to Tenant as additional rent
hereunder, payable within ten (10) days of written demand by Landlord.

37.  MISCELLANEOUS

Accord and Satisfaction;  Allocation of Payments.  No payment by Tenant or
Receipt by Landlord of a lesser amount than the Rent provided for in this
Lease shall be deemed to be other than on account of the earliest due rent,
nor shall any endorsement or statement on any check or letter accompanying
any check or payment as rent be deemed an accord and satisfaction, and
Landlord may accept such check or payment without prejudice to Landlord's
right to recover the balance of the Rent or pursue any other remedy provided
for in this Lease.  In connection with the foregoing, Landlord shall have the
absolute right in its sole discretion to apply any payment received from
Tenant to any account or other payment of Tenant then not current and due or
delinquent.

Addenda.  If any provision contained in an addendum to this Lease is
inconsistent with any other provision herein, the provision contained in the
addendum shall control, unless otherwise provided in the addendum.

Attorney's Fees.  If any action or proceeding is brought by either party
against the other pertaining to or arising out of this Lease, the finally
prevailing party shall be entitled to recover all costs and expenses,
including reasonable attorney's fees, incurred on account of such action or
proceeding.

Captions, Articles and Section Numbers.  The captions appearing within the
body of this Lease have been inserted as a matter of convenience and for
reference only and in no way define, limit or enlarge the scope or meaning of
this Lease.  All references to Article and Section numbers refer to Articles
and Sections in this Lease.

Changes Requested by Lender:  Neither Landlord or Tenant shall unreasonably
withhold its consent to changes or amendments to this Lease requested by the
lender on Landlord's interest, so long as those changes do not alter the
basic business terms of this Lease or otherwise materially diminish any
rights or materially increase any obligations of the party from whom consent
to
<PAGE>

such change or amendment is requested.

Choice of Law.  This Lease shall be construed and enforced in accordance with
the Laws of the State.

Consent.  Notwithstanding anything contained in this Leasee to the contrary,
Tenant shall have no claim and hereby waives the right to any claim against
Landlord for money damages by reason of any refusal:  withholding or delaying
by Landlord of any consent, approval or statement of satisfaction and in such
event, Tenant's only remedies therefor shall be an action for specific
performance, injunction or declaratory judgment to enforce any right to such
consent, etc.

Corporate Authority.  If Tenant is a corporation, each individual signing
this Lease on behalf of Tenant represents and warrants that he is duly
authorized to execute and deliver this Lease on behalf of the corporation,
and that this Lease is binding on Tenant in accordance with its terms.
Tenant shall, at Landlord's request, deliver a certified copy of a resolution
of its board of directors authorizing such execution.

Counterparts.  This Lease may be executed in multiple counterparts, all of
which shall constitute one and the same Lease.

Execution of Lease;  No Option.  The submission of this Lease to Tenant shall
be for examination purposes only and does not and shall not constitute a
reservation of or option for Tenant to lease, or otherwise create any
interest of Tenant in the Premises or any other premises within the Building
or Project, Execution of this Lease by Tenant and its return to Landlord
shall not be binding on Landlord notwithstanding any time interval, until
Landlord has in fact signed and delivered this Lease to Tenant.

Furnishing of Financial Statements;  Tenant's Representations.  In order to
induce Landlord to enter into this Lease Tenant agrees that it shall promptly
furnish Landlord, from time to time, upon Landlord's written request with
financial statements reflection Tenant's current financial condition.  Tenant
represents and warrants that all financial statements, records and
information furnished by Tenant to Landlord in connection with this Lease are
true, correct and complete in all respects.

Further Assurances.  The parties agree to promptly sign all documents
reasonably requested to give effect to the provisions of this Lease.

Mortgagee Protection.  Tenant agrees to send by certified or registered mail
to any first mortgagee or first deed of trust beneficiary of Landlord whose
address has been furnished to Tenant, a copy of any notice of default served
by Tenant on Landlord.  If Landlord fails to cure such default within the
time provided for in this Lease, such mortgagee or beneficiary shall have an
additional thirty (30) days to cure such default; provided that if such
default cannot reasonably be cured within that thirty (30) day period, then
such mortgagee or beneficiary shall have such additional time to cure the
default as is reasonably necessary under the circumstances.

Prior Agreements; Amendments.  This Lease contains all of the agreements of
the parties with respect to any matter covered or mentioned.  In this Lease,
and no prior agreement or understanding pertaining to any such matter shall
be effective for any purpose.  No provision of this Lease may be amended or
added to except by an agreement in writing signed by the parties or their
respective successors in interest.

Recording.  Tenant shall not record this Lease without the prior written
consent of Landlord.  Tenant, upon the request of Landlord, shall execute and
acknowledge a "short form" memorandum of this Lease for recording purposes.

Severability.  A final determination by a court of competent jurisdiction
that any provision of this Lease is invalid shall not affect the validity of
any provision, and any provision shall determined to be invalid shall, to the
extent possible, be construed to accomplish its intended effect.

Successors and Assigns.  This Lease shall apply to and bind the heirs,
personal representatives, and permitted successors and assigns of the parties.

Time of the Essence.  Time is of the essence of this Lease.

Waiver.  No delay or omission in the exercise of any right or remedy of
Landlord upon any default by Tenant shall repair such right or remedy or be
construed as a waiver of such default.

The receipt and acceptance of Landlord of delinquent Rent shall not
constitute a waiver of any other default; it shall constitute only a waiver
of timely payment of the particular Rent payment involved.

No act or conduct of Landlord, including, without limitation, the acceptance
of keys to the Premises, shall constitute an acceptance of the surrender of
the Premises by Tenant before the expiration of the Term.  Only a written
notice from Landlord to Tenant shall constitute acceptance of the surrender
of the Premises and accomplish a termination of the Lease.

Landlord's consent to or approval of any act by Tenant requiring Landlord's
consent or approval shall not be deemed to waive or render unnecessary
Landlord's consent to or approval of any subsequent act by Tenant.

Any waiver by Landlord of any default must be in writing and shall not be a
waiver of any other default concerning the same or any other provision of the
Lease.

The parties hereto have executed this Lease as of the date set forth on page
one (1).

 /s/ Jeff Stock                          /s/ Robert McCausland
-----------------------------------     -----------------------------------
  1-24-97                               Washington Mortgage Services Inc.
-----------------------------------     -----------------------------------
                                        1/24/97
-----------------------------------     -----------------------------------

-----------------------------------     -----------------------------------
             Landlord                                 Tenant
<PAGE>

                        RIDER: GUARANTEE OF LEASE

      WHEREAS, the Landlord under this lease requires as a condition to its
execution of said lease that the undersigned guarantee the full performance
of the obligations of Tenant under said Lease; and

      WHEREAS, the undersigned is desirous that Landlord enter into said
lease with Tenant.

      NOW, THEREFORE, in consideration of the execution of said lease by
Landlord, the undersigned hereby unconditionally guarantees the full
performance of each and all of the terms, covenants and conditions of said
lease to be kept and performed by said Tenant, including the payment of all
rentals and all other charges to accrue thereunder. The undersigned further
agrees as follows:

      1.  That this covenant and agreement on its part shall continue in
favor of the Landlord notwithstanding any extension modification or
alteration of said lease entered into by and between the parties thereto,
their successors or into by an between the parties thereto, their successors
or assigns, or notwithstanding any assignment of said lease, with or without
consent of Landlord, and no extension, modification, alteration or assignment
of the above referred to lease shall in any manner release or discharge the
undersigned, and it does hereby consent thereto.

      2.  This guarantee will continue unchanged by any bankruptcy,
reorganization or insolvency of the Tenant or any successor of assignees
thereof or by any abandonment by a trustee of the Tenant.

      3.  Landlord may, without notice, assign this guarantee in whole or in
part and no assignment or transfer of the lease shall operate to distinguish
or diminish the liability of the undersigned hereunder.

      4.  The liability of the undersigned under this guarantee shall be
primary and that in any right of action which shall accrue to Landlord under
the lease, Landlord may, at its option, proceed against the undersigned
without having consumenced any action, or having obtained any judgement
against the Leasee.

      5.  To pay Landlord's reasonable attorney's fees and all costs and
other expenses incurred in any collection or attempt a collection (including
any suit or action or any appeal thereon) or in any negotiations relative to
the legal obligations hereby guaranteed or lawfully enforcing this guarantee
against the undersigned, individually and jointly.

      6.  That it does hereby waive notice of any demand by the Landlord, as
well as any notice of default in the payment of rent or any other amounts
contained or reserved in the lease.

      The use of the singular herein shall include the plural. The obligation
of two or more parties shall be joint and several. The terms and provisions
of this guarantee shall be binding upon and inure to the benefit of the
respective successors and assigns of the parties herein named.

      IN WITNESS WHEREOF, the undersigned have each caused this guarantee
to be executed on the date set forth opposite early signature below.

          1/24/97                      /s/ Robert McCausland
-------------------------------       ---------------------------------
           Date                          Name

-------------------------------       ---------------------------------
           Date                          Name

-------------------------------       ---------------------------------
           Date                          Name

<PAGE>

                          " A D D E N D U M   A "

1.    Actual footage to be determined as used Additional space at, then
      current monthly rent.

2.    Landlord may not lease out any of top floor until July 1, 1997. Anytime
      after that date, tenant shall have right of first refusal within two
      business days. If top floor has been fully leased, tenant then may have
      right of first refusal on any remaining space on first floor or basement.

3.    Tenant has the right to cancel lease with 120 days written notice.

Jeff Stock            1-24-97

Robert McCausland     1/24/97

<PAGE>

                          " A D D E N D U M   B "

1.    Tenant may renew for an additional two year period at current rate plus
      C.P.I if notified within 75 days expiration of lease.

<PAGE>

       PROPOSED FLOORPLAN FOR WASHINGTON HOME MORTGAGE - EAST WING

                                  [MAP]

<PAGE>

       PROPOSED FLOORPLAN FOR WASHINGTON HOME MORTGAGE - WEST WING

Standard buildout to include in Aprox. $16,000, 20 offices + lunchroom and
kitchen. Kitchen to include sink countertop approx. 4' of countertop with
drawers and a set of overhead cabinets.  Plumbed and wired for fridge,
dishwasher, and microwave.

                                  [MAP]

<PAGE>

                                  [MAP]

                                EXHIBIT "A"

                             SECOND FLOOR PLAN

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