Document:

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                                                                     EXHIBIT 4.4

                                                  AS AMENDED AS OF MARCH 1, 2000

                                 TRUETIME, INC.

                       1999 KEY EMPLOYEE STOCK OPTION PLAN

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                                 TRUETIME, INC.

                       1999 KEY EMPLOYEE STOCK OPTION PLAN

                                TABLE OF CONTENTS

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<CAPTION>
                                                                                    Section
                                                                                    -------
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ARTICLE I - PLAN

                  Purpose...............................................................1.1
                  Effective Date of Plan................................................1.2

ARTICLE II - DEFINITIONS

                  Affiliate.............................................................2.1
                  Board of Directors....................................................2.2
                  Change of Control.....................................................2.3
                  Code..................................................................2.4
                  Committee.............................................................2.5
                  Company...............................................................2.6
                  Employee..............................................................2.7
                  Fair Market Value.....................................................2.8
                  Incentive Option......................................................2.9
                  Nonqualified Option..................................................2.10
                  Option...............................................................2.11
                  Option Agreement.....................................................2.12
                  Outside Directors....................................................2.13
                  Plan.................................................................2.14
                  Restricted Stock.....................................................2.15
                  Restricted Stock Agreement...........................................2.16
                  Restricted Stock Purchase Price......................................2.17
                  Stock................................................................2.18
                  Stock Award..........................................................2.19
                  Ten Percent Stockholder..............................................2.20
                  Voting Stock.........................................................2.21

ARTICLE III - ELIGIBILITY

ARTICLE IV - GENERAL PROVISIONS RELATING TO OPTIONS AND STOCK AWARDS

                  Authority to Grant Options and Stock Awards...........................4.1
                  Dedicated Shares......................................................4.2
                  Non-Transferability...................................................4.3
                  Requirements of Law...................................................4.4
                  Changes in the Company's Capital Structure............................4.5
                  Election Under Section 83(b) of the Code..............................4.6
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ARTICLE V - OPTIONS

                  Type of Option........................................................5.1
                  Option Price..........................................................5.2
                  Duration of Options...................................................5.3
                  Amount Exercisable....................................................5.4
                  Exercise of Options...................................................5.5
                  Exercise on Termination of Employment.................................5.6
                  Substitution Options..................................................5.7
                  No Rights as Stockholder..............................................5.8

ARTICLE VI - STOCK AWARDS

                  Stock Awards..........................................................6.1
                  Restrictions..........................................................6.2
                  Stock Certificate.....................................................6.3
                  Rights as Stockholder.................................................6.4
                  Lapse of Restrictions.................................................6.5
                  Restriction Period....................................................6.6

ARTICLE VII - ADMINISTRATION

ARTICLE VIII - AMENDMENT OR TERMINATION OF PLAN

ARTICLE IX - MISCELLANEOUS

                  No Establishment of a Trust Fund......................................9.1
                  No Employment Obligation..............................................9.2
                  Forfeiture and Disgorgement of Profits ...............................9.3
                  Tax Withholding.......................................................9.4
                  Written Agreement.....................................................9.5
                  Indemnification of the Committee and the
                           Board of Directors...........................................9.6
                  Gender................................................................9.7
                  Headings..............................................................9.8
                  Other Compensation Plans..............................................9.9
                  Other Options or Awards..............................................9.10
                  Governing Law........................................................9.11
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                                    ARTICLE I

                                      PLAN

        1.1 PURPOSE. The Plan is for key employees (including officers and
employee directors), consultants and advisors of the Company and its Affiliates
and is intended to advance the best interests of the Company, its Affiliates,
and its stockholders by providing those persons who have substantial
responsibility for the management and growth of the Company and its Affiliates
with additional incentives and an opportunity to obtain or increase their
proprietary interest in the Company, thereby encouraging them to continue in the
employ of the Company or any of its Affiliates.

        1.2 EFFECTIVE DATE OF PLAN. The Plan is effective December 10, 1999, if
within one year of that date it shall have been approved by at least a majority
vote of stockholders voting in person or by proxy at a duly held stockholders'
meeting, or if the provisions of the corporate charter, by-laws or applicable
state law prescribes a greater degree of stockholder approval for this action,
the approval by the holders of that percentage, at a duly held meeting of
stockholders. No Incentive Option, Nonqualified Option, or Stock Award shall be
granted pursuant to the Plan after December 9, 2009.

                                   ARTICLE II

                                   DEFINITIONS

         The words and phrases defined in this Article shall have the meaning
set out in these definitions throughout the Plan.

        2.1 "AFFILIATE" means any parent corporation and any subsidiary
corporation. The term "parent corporation" means any corporation (other than the
Company) in an unbroken chain of corporations ending with the Company if, at the
time of the action or transaction, each of the corporations other than the
Company owns stock possessing more than 50 percent of the total combined voting
power of all classes of stock in one of the other corporations in the chain. The
term "subsidiary corporation" means any corporation (other than the Company) in
an unbroken chain of corporations beginning with the Company if, at the time of
the action or transaction, each of the corporations other than the last
corporation in the unbroken chain owns stock possessing more than 50 percent of
the total combined voting power of all classes of stock in one of the other
corporations in the chain.

         2.2 "BOARD OF DIRECTORS" means the board of directors of the Company.

         2.3 "CHANGE OF CONTROL" means the occurrence of one or more of the
following events:

                  (a) Any "person" (other than the Company or a subsidiary
         thereof or any employee benefit plan thereof or OYO Corporation (Japan)
         or OYO Corporation U.S.A.), including a "syndicate" or "group" as those
         terms are used in Section 13(d) of the Securities Exchange Act of 1934
         (the"Exchange Act"), is or becomes the "beneficial owner" (as that term
         is defined in Rule 13d-3 under the Exchange Act), directly or
         indirectly, of securities of the Company representing 20 percent or
         more of the combined voting power of the Company's then outstanding
         Voting Stock;

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                  (b) The Company is merged or consolidated or combined in any
         other manner with another corporation or entity and immediately after
         giving effect to the merger or consolidation either (i) less than 80
         percent of the outstanding Voting Stock of the surviving or resulting
         entity are then beneficially owned in the aggregate by (x) the
         stockholders of the Company immediately prior to such merger or
         consolidation, or (y) if a record date has been set to determine the
         stockholders of the Company entitled to vote on such merger or
         consolidation, the stockholders of the Company as of such record date,
         or (ii) the Board of Directors, or similar governing body, of the
         surviving or resulting entity does not have as a majority of its
         members the persons specified in clause (c)(a) and (b) below;

                  (c) If at any time the following do not constitute a majority
         of the Board of Directors of the Company (or any successor entity
         referred to in clause (b) above):

                           a.       persons who are directors of the Company on
                  December 10, 1999; and

                           b.       persons who, prior to their election as
                  directors of the Company (or successor entity if applicable)
                  were nominated, recommended or endorsed by a formal
                  resolution of the Board of Directors of the Company;

                  (d) If at any time during a calendar year a majority of the
         directors of the Company are not persons who were directors at the
         beginning of the calendar year;

                  (e) the Company transfers (whether by sale, lease, exchange or
         otherwise) substantially all of its assets to another corporation which
         is a less than 80 percent-owned, direct or indirect, subsidiary of the
         Company; or

                  (f) the Company shall adopt or undertake any plan of
         liquidation or dissolution.

         2.4 "CODE" means the Internal Revenue Code of 1986, as amended.

         2.5 "COMMITTEE" means the Compensation Committee of the Board of
Directors or such other committee of two or more individuals, as designated by
the Board of Directors. The Committee shall be comprised (a) solely of at least
two members who are Outside Directors or (b) of the entire Board of Directors.

         2.6 "COMPANY" means TrueTime, Inc., a Delaware corporation.

         2.7 "EMPLOYEE" means a person employed or retained by the Company or
any Affiliate to whom an Option or a Stock Award is granted.

         2.8 "FAIR MARKET VALUE" of the Stock as of any date means (a) the
closing price of the Stock on that date on the principal securities exchange on
which the Stock is listed; or (b) if the Stock is not listed on a securities
exchange, the average of the high and low sale prices of the Stock on that date
as reported on the National Association of Securities Dealers Automated
Quotation National Market System (or successor system); or (c) if the Stock is
not listed on the National Association of Securities Dealers Automated Quotation
National Market System (or successor system), the average of the high and low
bid quotations for the Stock on that date as reported by the

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National Quotation Bureau Incorporated; or (d) if none of the foregoing is
applicable, an amount at the election of the Committee equal to (x) the average
between the closing bid and ask prices per share of stock on the last preceding
date on which those prices were reported or (y) that amount as determined by the
Committee.

         2.9 "INCENTIVE OPTION" means an option granted under the Plan which is
designated as an "Incentive Option" and satisfies the requirements of section
422 of the Code.

         2.10 "NONQUALIFIED OPTION" means an option granted under the Plan other
than an Incentive Option.

         2.11 "OPTION" means an Incentive Option or a Nonqualified Option
granted under the Plan to purchase shares of Stock.

         2.12 "OPTION AGREEMENT" means the written agreement which sets out the
terms of an Option.

         2.13 "OUTSIDE DIRECTOR" means a member of the Board of Directors
serving on the Committee who satisfied the criteria of section 162(m) of the
Code.

         2.14 "PLAN" means the TrueTime, Inc. 1999 Key Employee Stock Option
Plan, as set out in this document and as it may be amended from time to time.

         2.15 "RESTRICTED STOCK" means stock awarded or purchased under a
Restricted Stock Agreement entered into pursuant to the Plan, together with (i)
all rights, warranties or similar items attached or accruing thereto or
represented by the certificate representing the stock and (ii) any stock or
securities into which or for which the stock is thereafter converted or
exchanged. The terms and conditions of the Restricted Stock Agreement shall be
determined by the Committee consistent with the terms of the Plan.

         2.16 "RESTRICTED STOCK AGREEMENT" means an agreement between the
Company or any Affiliate and the Employee pursuant to which the Employee
receives a Stock Award subject to Article VI.

         2.17 "RESTRICTED STOCK PURCHASE PRICE" means the purchase price, if
any, per share of Restricted Stock subject to an Award. The Restricted Stock
Purchase Price shall be determined by the Committee. It may be greater than or
less than the Fair Market Value of the Stock on the date of the Stock Award.

         2.18 "STOCK" means the common stock of the Company, $.01 par value or,
in the event that the outstanding shares of common stock are later changed into
or exchanged for a different class of stock or securities of the Company or
another corporation, that other stock or security.

         2.19 "STOCK AWARD" means an award of Restricted Stock.

         2.20 "TEN PERCENT STOCKHOLDER" means an individual who, at the time an
Incentive Option is granted, owns stock possessing more than ten percent of the
total combined voting power of all classes of stock of the Company or of any
Affiliate. An individual shall be considered as owning the stock owned, directly
or indirectly, by or for his brothers and sisters (whether by the whole or half
blood), spouse, ancestors, and lineal descendants; and stock owned, directly or

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indirectly, by or for a corporation, partnership, estate, or trust, shall be
considered as being owned proportionately by or for its stockholders, partners,
or beneficiaries.

         2.21 "VOTING STOCK" means shares of capital stock of the Company the
holders of which are entitled to vote for the election of directors of the
Company, but excluding shares entitled to so vote only upon the occurrence of a
contingency unless that contingency shall have occurred.

                                   ARTICLE III

                                   ELIGIBILITY

         The individuals who shall be eligible to receive Incentive Options,
Nonqualified Options, and Stock Awards shall be those key employees, consultants
and advisors of the Company or any of its Affiliates as the Committee shall
determine from time to time. The Board of Directors may designate one or more
individuals who shall not be eligible to receive any Option or Stock Award under
the Plan or under other similar plans of the Company.

                                   ARTICLE IV

             GENERAL PROVISIONS RELATING TO OPTIONS AND STOCK AWARDS

         4.1 AUTHORITY TO GRANT OPTIONS AND STOCK AWARDS. The Committee may
grant to those key employees, consultants and advisors of the Company or any of
its Affiliates as it shall from time to time determine, Options or Stock Awards
under the terms and conditions of the Plan. Subject only to any applicable
limitations set out in the Plan, the number of shares of Stock to be covered by
any Option or Stock Award to be granted to an Employee shall be as determined by
the Committee.

         4.2 DEDICATED SHARES. The total number of shares of Stock with respect
to which Options and Stock Awards may be granted under the Plan shall be
1,500,000. The shares may be treasury shares or authorized but unissued shares.
The maximum number of shares subject to Options that may be issued to any
Employee under the Plan in any calender year is 400,000. The number of shares
stated in this Section 4.2 shall be subject to adjustment in accordance with the
provisions of Section 4.5.

         In the event that any outstanding Option or Stock Award shall expire or
terminate for any reason or any Option or Stock Award is surrendered, the shares
of Stock allocable to the unexercised portion of that Option or Stock Award may
again be subject to an Option or Stock Award under the Plan.

         4.3 RESTRICTIONS ON TRANSFERABILITY OF STOCK AWARDS AND OPTIONS. (a)
Except as set forth in this Section 4.3, Options shall not be transferable by
the Employee other than by will or under the laws of decent and distribution,
and shall be exercisable, during the Employee's lifetime, only by him. Any
attempt to transfer a Stock Award other than pursuant to the terms of the Plan
and the Restricted Stock Agreement shall entitle the Committee to terminate that
Stock Award and all rights of that Employee to the Restricted Stock included
therein.

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                  (b) The Committee may, in its discretion, permit the person to
whom an Option was granted ("Optionee") to transfer all or any part of an
Option, or may grant an Option with terms that expressly permit all or any part
of that Option to be transferred by the Optionee, in either case to (i) the
spouse, children, stepchildren, grandchildren, parents, grandparents, siblings
(including half brothers and sisters), and individuals who are family members by
adoption, of the Optionee ("Immediate Family Members"), (ii) a trust or trusts
for the exclusive benefit of one or more of the Optionee's Immediate Family
Members, or (iii) a partnership or other legal entity in which only the
Optionee's Immediate Family Members have equity or ownership interests
(collectively, "Permitted Transferees"); provided that (x) there may be no
consideration for any such transfer and (y) subsequent transfers of Options so
transferred (other than transfers by will or under the laws of decent and
distribution, transfers back to the Optionee to whom the Option was originally
granted and transfers to other Permitted Transferees of such Optionee) shall be
void.

                  (c) Following the transfer of any Option pursuant to paragraph
(b) above, that Option shall continue to have the same terms and provisions and
be subject to the same restrictions as were applicable immediately before that
transfer, except that references in the Plan and in the Option Agreement
applicable to such Option shall be deemed to be references to the Permitted
Transferee or Permitted Transferees; provided that any provision of Section 5.6
that would have been triggered by the termination, death, retirement or
disability of the Employee to whom the Option was originally granted will
continue to be triggered by the termination, death, retirement or disability of
such Employee."

         4.4 REQUIREMENTS OF LAW. The Company shall not be required to sell or
issue any Stock under any Option or Stock Award if issuing that Stock would
constitute or result in a violation by the Employee or the Company of any
provision of any law, statute, or regulation of any governmental authority.
Specifically, in connection with any applicable statute or regulation relating
to the registration of securities, upon exercise of any Option or pursuant to
any Stock Award, the Company shall not be required to issue any Stock unless the
Committee has received evidence satisfactory to it to the effect that the holder
of that Option or Stock Award will not transfer the Stock except in accordance
with applicable law, including receipt of an opinion of counsel satisfactory to
the Company to the effect that any proposed transfer complies with applicable
law. The determination by the Committee on this matter shall be final, binding
and conclusive. The Company may, but shall in no event be obligated to, register
any Stock covered by the Plan pursuant to applicable securities laws of any
country or any political subdivision. In the event the Stock issuable on
exercise of an Option or pursuant to a Stock Award is not registered, the
Company may imprint on the certificate evidencing the Stock any legend that
counsel for the Company considers necessary or advisable to comply with
applicable law. The Company shall not be obligated to take any other affirmative
action in order to cause the exercise of an Option or vesting under a Stock
Award, or the issuance of shares under either of them, to comply with any law or
regulation of any governmental authority.

         4.5 CHANGES IN THE COMPANY'S CAPITAL STRUCTURE. The existence of
outstanding Options or Stock Awards shall not affect in any way the right or
power of the Company or its stockholders to make or authorize any or all
adjustments, recapitalizations, reorganizations or other changes in the
Company's capital structure or its business, or any merger or consolidation of
the Company, or any issue of bonds, debentures, preferred or prior preference
stock ahead of or affecting the Stock or its rights, or the dissolution or
liquidation of the Company, or any sale or transfer of all or any part of its
assets or business, or any other corporate act or proceeding, whether of a
similar character or otherwise.

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         If the Company shall effect a subdivision or consolidation of shares or
other capital readjustment, the payment of a stock dividend, or other increase
or reduction of the number of shares of the Stock outstanding, without receiving
compensation for it in money, services or property, then (a) the number, class,
and per share price of shares of Stock subject to outstanding Options under the
Plan shall be appropriately adjusted in such a manner as to entitle an Employee
to receive upon exercise of an Option, for the same aggregate cash
consideration, the equivalent total number and class of shares he would have
received had he exercised his Option in full immediately prior to the event
requiring the adjustment; and (b) the number and class of shares of Stock then
reserved to be issued under the Plan shall be adjusted by substituting for the
total number and class of shares of Stock then reserved, that number and class
of shares of Stock that would have been received by the owner of an equal number
of outstanding shares of each class of Stock as the result of the event
requiring the adjustment.

         If while unexercised Options remain outstanding under the Plan (i) the
Company shall not be the surviving entity in any merger, consolidation or other
reorganization (or survives only as a subsidiary of an entity other than an
entity that was wholly-owned by the Company immediately prior to such merger,
consolidation or other reorganization), (ii) the Company sells, leases or
exchanges or agrees to sell, lease or exchange all or substantially all of its
assets to any other person or entity (other than an entity wholly-owned by the
Company), (iii) the Company is to be dissolved, or (iv) the Company is a party
to any other corporate transaction (as defined under section 424(a) of the Code
and applicable Treasury Regulations) that is not described in clauses (i), (ii)
or (iii) of this sentence (each such event is referred to herein as a "Corporate
Change"), then (x) except as otherwise provided in an Option Agreement or as a
result of the Board of Directors' effectuation of one or more of the
alternatives described below, there shall be no acceleration of the time at
which any Option then outstanding may be exercised, and (y) no later than ten
days after the approval by the stockholders of the Company of such Corporate
Change, the Board of Directors, acting in its sole and absolute discretion
without the consent or approval of any Optionee, shall act to effect one or more
of the following alternatives, which may vary among individual Optionees and
which may vary among Options held by any individual Optionee:

                  (1) accelerate the time at which some or all of the Options
         then outstanding may be exercised so that such Options may be exercised
         in full for a limited period of time on or before a specified date
         (before or after such Corporate Change) fixed by the Board of
         Directors, after which specified date all such Options that remain
         unexercised and all rights of Optionees thereunder shall terminate,

                  (2) require the mandatory surrender to the Company by all or
         selected Optionees of some or all of the then outstanding Options held
         by such Optionees (irrespective of whether such Options are then
         exercisable under the provisions of the Plan or the Option Agreements
         evidencing such Options) as of a date, before or after such Corporate
         Change, specified by the Board of Directors, in which event the Board
         of Directors shall thereupon cancel such Options and the Company shall
         pay to each such Optionee an amount of cash per share equal to the
         excess, if any, of the per share price offered to stockholders of the
         Company in connection with such Corporate Change over the exercise
         price(s) under such Options for such shares,

                  (3) with respect to all or selected Optionees, have some or
         all of their then outstanding Options (whether vested or unvested)
         assumed or have a new Option substituted for some or all of their then
         outstanding Options (whether vested or unvested) by an entity which is
         a party to the transaction resulting in such Corporate

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         Change and which is then employing him, or a parent or subsidiary of
         such entity, provided that (A) such assumption or substitution is on a
         basis where the excess of the aggregate fair market value of the
         shares subject to the Option immediately after the assumption or
         substitution over the aggregate exercise price of such shares is equal
         to the excess of the aggregate fair market value of all shares subject
         to the Option immediately before such assumption or substitution over
         the aggregate exercise price of such shares, and (B) the assumed
         rights under such existing Option or the substituted rights under such
         new Option as the case may be will have the same terms and conditions
         as the rights under the existing Option assumed or substituted for, as
         the case may be,

                  (4) provide that the number and class of shares of Stock
         covered by an Option (whether vested or unvested) theretofore granted
         shall be adjusted so that such Option when exercised shall thereafter
         cover the number and class of shares of stock or other securities or
         property (including, without limitation, cash) to which the Optionee
         would have been entitled pursuant to the terms of the agreement and/or
         plan relating to such Corporate Change if, immediately prior to such
         Corporate Change, the Optionee had been the holder of record of the
         number of shares of Stock then covered by such Option, or

                  (5) make such adjustments to Options then outstanding as the
         Board of Directors deems appropriate to reflect such Corporate Change
         (provided, however, that the Board of Directors may determine in its
         sole and absolute discretion that no such adjustment is necessary).

                  In effecting one or more of alternatives (3), (4) or (5)
         above, and except as otherwise may be provided in an Option Agreement,
         the Board of Directors, in its sole and absolute discretion and without
         the consent or approval of any Optionee, may accelerate the time at
         which some or all Options then outstanding may be exercised.

         In the event of changes in the outstanding Stock by reason of
recapitalizations, reorganizations, mergers, consolidations, combinations,
exchanges or other relevant changes in capitalization occurring after the date
of the grant of any Option and not otherwise provided for by this Section 4.5,
any outstanding Options and any agreements evidencing such Options shall be
subject to adjustment by the Board of Directors in its sole and absolute
discretion as to the number and price of shares of stock or other consideration
subject to such Options. In the event of any such change in the outstanding
Stock, the aggregate number of shares available under the Plan may be
appropriately adjusted by the Board of Directors, whose determination shall be
conclusive.

         After a merger of one or more corporations into the Company or after a
consolidation of the Company and one or more corporations in which the Company
shall be the surviving corporation, each Employee shall be entitled to have his
Restricted Stock appropriately adjusted based on the manner the Stock was
adjusted under the terms of the agreement of merger or consolidation.

         The issue by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, for cash or property, or for
labor or services either upon direct sale or upon the exercise of rights or
warrants to subscribe for them, or upon conversion of shares or obligations of
the Company convertible into shares or other securities, shall not affect, and
no adjustment by reason

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of such issuance shall be made with respect to, the number, class, or price of
shares of Stock then subject to outstanding Options or Stock Awards.

         4.6 ELECTION UNDER SECTION 83(b) OF THE CODE. If any Employee exercises
the election permitted under section 83(b) of the Code, that Employee shall,
within ten days of making the election, (i) notify the Committee that he has
made the election and (ii) pay to the Company, in immediately available funds,
an amount equal to the additional amount, if any, that the Company will be
required to withhold under applicable tax law as a result of such election. If
the Employee fails to make such payment or otherwise provide for such payment,
then the Company shall be entitled to deduct such sums from other compensation
payable to such Employee or the Committee shall be entitled to rescind the Stock
Award subject to such election.

                                    ARTICLE V

                                     OPTIONS

         5.1 TYPE OF OPTION. The Committee shall specify whether a given option
shall constitute an Incentive Option or a Nonqualified Option.

         5.2 OPTION PRICE. The price at which Stock may be purchased under an
Incentive Option shall not be less than the greater of: (a) 100 percent of the
Fair Market Value of the shares of Stock on the date the Option is granted or
(b) the aggregate par value of the shares of Stock on the date the Option is
granted. The Committee in its discretion may provide that the price at which
shares of Stock may be purchased under an Incentive Option shall be more than
100 percent of Fair Market Value. In the case of any Ten Percent Stockholder,
the price at which shares of Stock may be purchased under an Incentive Option
shall not be less than 110 percent of the Fair Market Value of the Stock on the
date the Incentive Option is granted.

         The price at which shares of Stock may be purchased under a
Nonqualified Option shall not be less than the greater of: (a) 100 percent of
the Fair Market Value of the shares of Stock on the date the Option is granted
or (b) the aggregate par value of the shares of Stock on the date the Option is
granted. The Committee in its discretion may provide that the price at which
shares of Stock may be purchased under a Nonqualified Option shall be more than
100 percent of Fair Market Value.

         5.3 DURATION OF OPTIONS. No Option shall be exercisable after the
expiration of ten years from the date the Option is granted. In the case of a
Ten Percent Stockholder, no Incentive Option shall be exercisable after the
expiration of five years from the date the Incentive Option is granted.

         5.4 AMOUNT EXERCISABLE. Each Option may be exercised from time to time,
in whole or in part, in the manner and subject to the conditions the Committee,
in its sole discretion, may provide in the Option Agreement, as long as the
Option is valid and outstanding, provided that no Option may be exercisable
within six months of the date of grant. Unless provided otherwise in the Option
Agreement, 25 percent of the shares of Stock in an Option shall become
exercisable on the first anniversary of the date of grant, and an additional 25
percent shall become exercisable on each of the next three anniversary dates.
Notwithstanding any other provisions of the Plan, in the event of a Change of
Control, each Option shall become immediately exercisable in full.

         5.5 INCENTIVE OPTION. To the extent that the aggregate Fair Market
Value (determined as of the time an Incentive Option is granted) of the Stock
with respect to which Incentive Options

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first become exercisable by the Optionee during any calendar year (under the
Plan and any other incentive stock option plan(s) of the Company or any
Affiliate) exceeds $100,000, the Incentive Options shall be treated as
Nonqualified Options. In making this determination, Incentive Options and such
other incentive stock options shall be taken into account in the order in which
they were granted.

         5.6 EXERCISE OF OPTIONS. Each Option shall be exercised by the delivery
of written notice to the Committee setting forth the number of shares of Stock
with respect to which the Option is to be exercised, together with: (a) cash,
check, bank draft, or postal or express money order payable to the order of the
Company for an amount equal to the option price of the shares, (b) Stock at its
Fair Market Value on the date of exercise, and/or (c) any other form of payment
which is acceptable to the Committee, and specifying the address to which the
certificates for the shares are to be mailed. As promptly as practicable after
receipt of written notification and payment, the Company shall deliver to the
Employee certificates for the number of shares with respect to which the Option
has been exercised, issued in the Employee's name. If shares of Stock are used
in payment, the aggregate Fair Market Value of the shares of Stock tendered must
be equal to or less than the aggregate exercise price of the shares being
purchased upon exercise of the Option, and any difference must be paid by cash,
check, bank draft, or postal or express money order payable to the order of the
Company. Delivery of the shares shall be deemed effected for all purposes when a
stock transfer agent of the Company shall have deposited the certificates in the
United States mail, addressed to the Employee, at the address specified by the
Employee.

         Whenever an Option is exercised by exchanging shares of Stock owned by
the Employee, the Employee shall deliver to the Company certificates registered
in the name of the Employee representing a number of shares of Stock legally and
beneficially owned by the Employee, free of all liens, claims, and encumbrances
of every kind, accompanied by stock powers duly endorsed in blank by the record
holder of the shares represented by the certificates (with signature guaranteed
by a commercial bank or trust company or by a brokerage firm having a membership
on a registered national stock exchange). The delivery of certificates upon the
exercise of Options is subject to the condition that the person exercising the
Option provide the Company with the information the Company might reasonably
request pertaining to exercise, sale or other disposition.

        5.7 EXERCISE ON TERMINATION OF EMPLOYMENT. Unless it is expressly
provided otherwise in the Option Agreement, Options shall terminate one day less
than three months after severance of employment of the Employee from the Company
and all Affiliates for any reason, with or without cause, other than death or
retirement or disability under the then established rules of the Company.
Whether authorized leave of absence or absence on military or government service
shall constitute severance of the employment of the Employee shall be determined
by the Committee at that time.

         In determining the employment relationship between the Company and the
Employee, employment by any Affiliate shall be considered employment by the
Company, as shall employment by a corporation issuing or assuming a stock option
in a transaction to which section 424(a) of the Code applies, or by a parent
corporation or subsidiary corporation of the corporation issuing or assuming a
stock option (and for this purpose, the phrase "corporation issuing or assuming
a stock option" shall be substituted for the word "Company" in the definitions
of parent corporation and subsidiary corporation in Section 2.1, and the
parent-subsidiary relationship shall be determined at the time of the corporate
action described in section 424(a) of the Code).

        5.8 DEATH. If, before the expiration of an Option, the Employee, whether
in the employ of the Company or after he has retired or was severed for
disability, dies, the Option shall continue

                                       9

<PAGE>   13

until the earlier of the Option's expiration date or one year following the date
of his death, unless it is expressly provided otherwise in the Option Agreement.
After the death of the Employee, his executors, administrators or any persons to
whom his Option may be transferred by will or by the laws of descent and
distribution shall have the right, at any time prior to the Option's expiration
or termination, whichever is earlier, to exercise it, to the extent to which he
was entitled to exercise it immediately prior to his death, unless it is
expressly provided otherwise in the Option Agreement.

         5.9 RETIREMENT. If, before the expiration of an Incentive Option, the
Employee shall be retired in good standing from the employ of the Company under
the then established rules of the Company, the Incentive Option shall terminate
on the earlier of the Option's expiration date or one year after his retirement.
An Incentive Option may become a Nonqualified Option if exercised more than
three months after termination of employment.

         Unless it is expressly provided otherwise in the Option Agreement, if
before the expiration of a Nonqualified Option, the Employee shall be retired in
good standing from the employ of the Company under the then established rules of
the Company, the Nonqualified Option shall terminate on the earlier of the
Nonqualified Option's expiration date or one year after his retirement. In the
event of retirement, the Employee shall have the right prior to the expiration
or termination of the Nonqualified Option to exercise the Nonqualified Option,
to the extent to which he was entitled to exercise it immediately prior to his
retirement, unless it is expressly provided otherwise in the Option Agreement.

         5.10 DISABILITY. If, before the expiration of an Option, the Employee
shall be severed from the employ of the Company for disability, the Option shall
terminate on the earlier of the Option's expiration date or one day less than
one year after the date he was severed because of disability, unless it is
expressly provided otherwise in the Option Agreement. In the event that the
Employee shall be severed from the employ of the Company for disability, the
Employee shall have the right prior to the termination of the Option to exercise
the Option, to the extent to which he was entitled to exercise it immediately
prior to his severance of employment for disability, unless it is expressly
provided otherwise in the Option Agreement.

         5.11 SUBSTITUTION OPTIONS. Options may be granted under the Plan from
time to time in substitution for stock options held by employees of other
corporations who are about to become employees of or affiliated with the Company
or any Affiliate as the result of a merger or consolidation of the employing
corporation with the Company or any Affiliate, or the acquisition by the Company
or any Affiliate of the assets of the employing corporation, or the acquisition
by the Company or any Affiliate of stock of the employing corporation as the
result of which it becomes an Affiliate of the Company. The terms and conditions
of the substitute Options granted may vary from the terms and conditions set out
in the Plan to the extent the Committee, at the time of grant, may deem
appropriate to conform, in whole or in part, to the provisions of the stock
options in substitution for which they are granted.

         5.12 NO RIGHTS AS STOCKHOLDER. No Employee shall have any rights as a
stockholder with respect to Stock covered by his Option until the date a stock
certificate is issued for the Stock.

                                       10

<PAGE>   14

                                   ARTICLE VI

                                  STOCK AWARDS

         6.1 STOCK AWARDS. The Committee may issue shares of Stock to an
eligible employee, consultant or advisor subject to the terms of a Restricted
Stock Agreement. The Restricted Stock may be issued for no payment by the
Employee or for a payment below the Fair Market Value on the date of grant.
Restricted Stock shall be subject to restrictions as to sale, transfer,
alienation, pledge or other encumbrance and generally will be subject to vesting
over a period of time specified in the Restricted Stock Agreement. The Committee
shall determine the period of vesting, the number of shares, the price, if any,
of Stock included in a Stock Award, and the other terms and provisions which are
included in a Restricted Stock Agreement. Notwithstanding any other provisions
of the Plan, in the event of a Change of Control, each Stock Award shall become
immediately vested.

         6.2 RESTRICTIONS. Restricted Stock shall be subject to the following
terms and conditions as determined by the Committee, including without
limitation any or all of the following:

                  (a) a prohibition against the sale, transfer, alienation,
         pledge or other encumbrance of the shares of Restricted Stock, such
         prohibition to lapse (i) at such time or times as the Committee shall
         determine (whether in annual or more frequent installments, at the time
         of the death, disability or retirement of the holder of such shares, or
         otherwise);

                  (b) a requirement that the holder of shares of Restricted
         Stock forfeit, or in the case of shares sold to an Employee, resell
         back to the Company at his cost, all or a part of such shares in the
         event of termination of the holder's employment during any period in
         which the shares remain subject to restrictions;

                  (c) a prohibition against employment of the holder of
         Restricted Stock by any competitor of the Company or its Affiliates, or
         against such holder's dissemination of any secret or confidential
         information belonging to the Company or an Affiliate; and

                  (d) unless stated otherwise in the Restricted Stock Agreement,
         (i) if restrictions remain at the time of severance of employment with
         the Company and all Affiliates, other than for reason of disability or
         death, the Restricted Stock shall be forfeited; and (ii) if severance
         of employment is by reason of disability or death, the restrictions on
         the shares shall lapse and the Employee or his heirs or estate shall be
         100 percent vested in the shares subject to the Restricted Stock
         Agreement.

         6.3 STOCK CERTIFICATE. Shares of Restricted Stock shall be registered
in the name of the Employee receiving the Stock Award and deposited, together
with a stock power endorsed in blank, with the Company. Each such certificate
shall bear a legend in substantially the following form:

         The transferability of this certificate and the shares of Stock
         represented by it is restricted by and subject to the terms and
         conditions (including conditions of forfeiture) contained in the
         TrueTime, Inc. 1999 Key Employee Stock Option Plan, and an agreement
         entered into between the registered owner and the Company. A

                                       11

<PAGE>   15

         copy of the Plan and agreement is on file in the office of the
         Secretary of the Company.

         6.4 RIGHTS AS STOCKHOLDER. Subject to the terms and conditions of the
Plan, each Employee receiving a certificate for Restricted Stock shall have all
the rights of a stockholder with respect to the shares of Stock included in the
Stock Award during any period in which such shares are subject to forfeiture
and restrictions on transfer, including without limitation, the right to vote
such shares. Dividends paid with respect to shares of Restricted Stock in cash
or property other than stock in the Company or rights to acquire stock in the
Company shall be paid to the Employee currently. Dividends paid in stock in the
Company or rights to acquire stock in the Company shall be added to and become a
part of the Restricted Stock.

         6.5 LAPSE OF RESTRICTIONS. At the end of the time period during which
any shares of Restricted Stock are subject to forfeiture and restrictions on
sale, transfer, alienation, pledge, or other encumbrance, such shares shall vest
and will be delivered in a certificate, free of all restrictions, to the
Employee or to the Employee's legal representative, beneficiary or heir;
provided the certificate shall bear such legend, if any, as the Committee
determines is reasonably required by applicable law.

         By accepting a Stock Award and executing a Restricted Stock Agreement,
the Employee agrees to remit when due any federal and state income and
employment taxes required to be withheld or to satisfy this obligation in a
manner acceptable to the Committee.

         6.6 RESTRICTION PERIOD. No Stock Award may provide for restrictions
continuing beyond ten years from the date of the Stock Award.

                                   ARTICLE VII

                                 ADMINISTRATION

         The Plan shall be administered by the Committee. All questions of
interpretation and application of the Plan, Options or Stock Awards shall be
subject to the determination of the Committee. A majority of the members of the
Committee shall constitute a quorum. All determinations of the Committee shall
be made by a majority of its members. Any decision or determination reduced to
writing and signed and dated by all of the members shall be as effective as if
it had been made by a majority vote at a meeting properly called and held. The
Plan shall be administered in such a manner as to permit the Options granted
under it which are designated to be Incentive Options to qualify as Incentive
Options. In carrying out its authority under the Plan, the Committee shall have
full and final authority and discretion, including but not limited to the
following rights, powers and authorities, to:

                  (a)      determine the Employees to whom and the time or
         times at which Options or Stock Awards will be made,

                  (b)      determine the number of shares and the purchase
         price of Stock covered in each Option or Stock Award, subject to the
         terms of the Plan,

                  (c)      determine the terms, provisions and conditions of
         each Option and Stock Award, which need not be identical,

                                       12

<PAGE>   16

                  (d)      accelerate the time at which any outstanding Option
         may be exercised,

                  (e)      define the effect, if any, on an Option or Stock
         Award of the death, disability, retirement, or termination of
         employment of the Employee,

                  (f)      prescribe, amend and rescind rules and regulations
         relating to administration of the Plan, and

                  (g)      make all other determinations and take all other
         actions deemed necessary, appropriate, or advisable for the proper
         administration of the Plan.

The actions of the Committee in exercising all of the rights, powers, and
authorities set out in this Article and all other Articles of the Plan, when
performed in good faith and in its sole judgment, shall be final, conclusive and
binding on all parties.

                                  ARTICLE VIII

                        AMENDMENT OR TERMINATION OF PLAN

         The Board of Directors of the Company may amend, terminate or suspend
the Plan at any time, in its sole and absolute discretion; provided, however,
that, to the extent required to maintain the status of any Incentive Option
under the Code, no amendment that would (a) change the aggregate number of
shares of Stock which may be issued under Incentive Options, (b) change the
class of employees, consultants and advisors eligible to receive Incentive
Options, or (c) decrease the Option price for Incentive Options below the Fair
Market Value of the Stock at the time it is granted, shall be made without the
approval of the Company's stockholders. Subject to the preceding sentence, the
Board shall have the power to make any changes in the Plan and in the
regulations and administrative provisions under it or in any outstanding
Incentive Option as in the opinion of counsel for the Company may be necessary
or appropriate from time to time to enable any Incentive Option granted under
the Plan to continue to qualify as an incentive stock option or such other stock
option as may be defined under the Code so as to receive preferential federal
income tax treatment.

                                   ARTICLE IX

                                  MISCELLANEOUS

         9.1 NO ESTABLISHMENT OF A TRUST FUND. No property shall be set aside
nor shall a trust fund of any kind be established to secure the rights of any
Employee under the Plan. All Employees shall at all times rely solely upon the
general credit of the Company for the payment of any benefit which becomes
payable under the Plan.

         9.2 NO EMPLOYMENT OBLIGATION. The granting of any Option or Stock Award
shall not constitute an employment contract, express or implied, nor impose upon
the Company or any Affiliate any obligation to employ or continue to employ any
Employee. The right of the Company or any Affiliate to terminate the employment
of any person shall not be diminished or affected by reason of the fact that an
Option or Stock Award has been granted to him.

                                       13

<PAGE>   17

         9.3 FORFEITURE AND DISGORGEMENT OF PROFITS. Notwithstanding any other
provisions of the Plan, if the Committee finds by a majority vote after full
consideration of the facts that the Employee, before or after termination of his
employment with the Company or an Affiliate for any reason (a) committed or
engaged in fraud, embezzlement, theft, commission of a felony, or proven
dishonesty in the course of his employment by the Company or an Affiliate, which
conduct damaged the Company or Affiliate, or disclosed trade secrets of the
Company or an Affiliate, or (b) participated, engaged in or had a material,
financial or other interest, whether as an employee, officer, director,
consultant, contractor, stockholder, owner, or otherwise, in any commercial
endeavor in the United States which is competitive with the business of the
Company or an Affiliate without the written consent of the Company or Affiliate,
the Employee shall forfeit all outstanding Options and all outstanding Stock
Awards, and including all exercised Options and other situations pursuant to
which the Company has not yet delivered a stock certificate. Clause (b) shall
not be deemed to have been violated solely by reason of the Employee's ownership
of stock or securities of any publicly traded corporation, if that ownership
does not result in effective control of the corporation.

         The decision of the Committee as to the cause of the Employee's
discharge, the damage done to the Company or an Affiliate, and the extent of the
Employee's competitive activity shall be final. No decision of the Committee,
however, shall affect the finality of the discharge of the Employee by the
Company or an Affiliate in any manner.

         If an Option or Stock Award would be forfeited pursuant to this Section
9.3 but for the fact that the Option has been exercised or the Stock Award has
vested, the Employee must, upon demand by the Company, which demand must be made
within 90 days of the Company's discovery of the violation and within 24 months
of the Employee's severance of employment, (i) in the case of an Option, sell to
the Company, for the exercise price of the Option, the Stock purchased under the
Option, (ii) deliver to the Company cash in an amount equal to the proceeds the
Employee realized upon the Employee's sale of the Stock minus the amount the
Employee paid to purchase the Stock, or (iii) deliver to the Company all of the
shares of Stock acquired under a Stock Award or pursuant to the exercise of an
Option.

         9.4 TAX WITHHOLDING. The Company or any Affiliate shall be entitled to
deduct from other compensation payable to each Employee any sums required by
federal, state, or local tax law to be withheld with respect to the grant or
exercise of an Option or lapse of restrictions on Restricted Stock. In the
alternative, the Company may require the Employee (or other person exercising
the Option or receiving the Restricted Stock) to pay the sum directly to the
employer corporation. If the Employee (or other person exercising the Option or
receiving the Restricted Stock) is required to pay the sum directly, payment in
cash or by check of such sums for taxes shall be delivered within ten days after
the date of exercise or lapse of restrictions. The Company shall have no
obligation upon exercise of any Option or lapse of restrictions on Restricted
Stock until payment has been received, unless withholding (or offset against a
cash payment) as of or prior to the date of exercise or lapse of restrictions is
sufficient to cover all sums due with respect to that exercise. The Company and
its Affiliates shall not be obligated to advise an Employee of the existence of
the tax or the amount which the employer corporation will be required to
withhold.

         9.5 WRITTEN AGREEMENT. Each Option and Stock Award shall be embodied in
a written Option Agreement or Restricted Stock Agreement which shall be subject
to the terms and conditions of the Plan and shall be signed (i) by the Employee
and (ii) by a member of the Committee on behalf of the Committee and the
Company, or by an executive officer of the Company other than the Employee on
behalf of the Company. The Option Agreement or Restricted Stock Agreement may

                                       14

<PAGE>   18

contain any other provisions that the Committee in its discretion shall deem
advisable which are not inconsistent with the terms of the Plan.

         9.6 INDEMNIFICATION OF THE COMMITTEE AND THE BOARD OF DIRECTORS. With
respect to administration of the Plan, the Company shall indemnify each present
and future member of the Committee and the Board of Directors against, and each
member of the Committee and the Board of Directors shall be entitled without
further act on his part to indemnity from the Company for, all expenses
(including attorney's fees, the amount of judgments and the amount of approved
settlements made with a view to the curtailment of costs of litigation, other
than amounts paid to the Company itself) reasonably incurred by him in
connection with or arising out of any action, suit, or proceeding in which he
may be involved by reason of his being or having been a member of the Committee
and/or the Board of Directors, whether or not he continues to be a member of the
Committee and/or the Board of Directors at the time of incurring the expenses --
including, without limitation, matters as to which he shall be finally adjudged
in any action, suit or proceeding to have been found to have been negligent in
the performance of his duty as a member of the Committee or the Board of
Directors. However, this indemnity shall not include any expenses incurred by
any member of the Committee and/or the Board of Directors in respect of matters
as to which he shall be finally adjudged in any action, suit or proceeding to
have been guilty of gross negligence or willful misconduct in the performance of
his duty as a member of the Committee and the Board of Directors, or in respect
of any matter in which any settlement is effected, to an amount in excess of the
amount approved by the Company on the advice of its legal counsel. In addition,
no right of indemnification under the Plan shall be available to or enforceable
by any member of the Committee and the Board of Directors unless, within 60 days
after institution of any action, suit or proceeding, he shall have offered the
Company, in writing, the opportunity to handle and defend same at its own
expense. This right of indemnification shall inure to the benefit of the heirs,
executors or administrators of each member of the Committee and the Board of
Directors and shall be in addition to all other rights to which a member of the
Committee and the Board of Directors may be entitled as a matter of law,
contract, or otherwise.

         9.7 GENDER. If the context requires, words of one gender when used in
the Plan shall include the others and words used in the singular or plural shall
include the other.

         9.8 HEADINGS. Headings of Articles and Sections are included for
convenience of reference only and do not constitute part of the Plan and shall
not be used in construing the terms of the Plan.

         9.9 OTHER COMPENSATION PLANS. The adoption of the Plan shall not affect
any other stock option, incentive or other compensation or benefit plans in
effect for the Company or any Affiliate, nor shall the Plan preclude the Company
from establishing any other forms of incentive or other compensation for
employees, consultants and advisors of the Company or any Affiliate.

         9.10 OTHER OPTIONS OR AWARDS. The grant of an Option or Stock Award
shall not confer upon the Employee the right to receive any future or other
Options or Stock Awards under the Plan, whether or not Options or Stock Awards
may be granted to similarly situated Employees, or the right to receive future
Options or Stock Awards upon the same terms or conditions as previously granted.

         9.11 GOVERNING LAW. The provisions of the Plan shall be construed,
administered, and governed under the laws of the State of Delaware.

                                       15<PAGE>   1

                                                                   EXHIBIT 10.17

STATE OF GEORGIA
COUNTY OF FULTON

                                      LEASE

         THIS Lease, made and entered into this 1st day of October, 1994, by and
between STEPHEN H. GREENSPAN, PAUL RUBEN and RICHARD M. VEHON (herein referred
to as the "Lessor") and T&C LIQUIDATORS, INC., a Texas corporation (herein
referred to as the "Lessee").

ARTICLE I. DEMISE OF PREMISES

         Section 1.01 Demise. For and in consideration of the payment of rent
herein reserved and the performance of the covenants and agreements herein on
the part of Lessee to be observed and performed, Lessor does hereby demise and
lease to Lessee that certain tract of land being Lot 5 and the South 20 feet of
Lot 4, in BLOCK D, of FREEWAY INDUSTRIAL DISTRICT, an Addition to the City of
Irving, Dallas County, Texas, according to the Map or Plat thereof recorded in
Volume 402, Page 1437, of the Map Records of Dallas County, Texas together with
all buildings, structures and other improvements, now or hereafter located
thereon (herein collectively referred to as the "Premises").

ARTICLE II. TERM OF LEASE

         Section 2.01 Term of Lease. The term of this Lease shall commence on
the 1st day of October, 1994 and, unless sooner terminated or extended as herein
provided, shall continue thereafter for two (2) years until midnight on the 30th
day of September, 1996.

ARTICLE III. COVENANTS AND WARRANTIES OF LESSOR

         Section 3.01 Leasehold Estate of Lessor. Lessor warrants that it has
full right and lawful authority to enter into this Lease; that it is lawfully
seized of a fee simple estate in the Premises, subject to those matters set
forth on Exhibit "A" hereof.

         Section 3.02 Quiet Possession. On paying the rent herein reserved and
performing and observing each and every covenant to be observed, kept and
performed by Lessee under this Lease, Lessee shall peaceable hold and enjoy the
Premises during the term of this Lease.

ARTICLE IV. ANNUAL RENT AND ADDITIONAL RENT

         Section 4.01 Rent. During the term of this Lease, Lessee agrees to pay
Lessor, as rent hereunder, an annual rent as follows:

                                       -1-

<PAGE>   2

<TABLE>
<CAPTION>
                                                                                                     MONTHLY
                YEAR                                     ANNUAL RENT                               INSTALLMENT
          -----------------                              -----------                               -----------
<S>                                                      <C>                                       <C>
          10/1/94 - 9/30/95                              $ 60,000.00                               $  5,000.00
          10/1/95 - 9/30/96                              $ 63,000.00                               $  5,250.00
</TABLE>

         The rent shall be paid in equal monthly installments on the first day
of each calendar month during the term of this Lease, at the office of Lessor,
1750-A Ellsworth Industrial Boulevard, Atlanta, Georgia 30318, or at such other
address as Lessor may from time to time designate in writing to Lessee.

         Section 4.02 Additional Rent. Lessee agrees to pay, from time to time
as provided in this Lease (i) all other amounts and sums which Lessee herein
assumes and agrees to pay, (ii) interest at the rate of ten percent (10%) per
annum on such of the foregoing amounts and sums as are payable to Lessor and are
not paid within five (5) days after the due date or if a demand therefor is
required by terms of this Lease, within five (5) days after the date of such
demand, from the due date or the date of such demand, as the case may be, until
payment thereof, and (iii) interest at the rate of ten percent (10%) per annum
on all installments of rent not paid by the due date, from the due date thereof
until paid (each and all of the sums provided in this Section 4.02 are herein
referred to as the "Additional Rent"). If Lessee fails to pay any Additional
Rent, Lessor shall have all the fights, powers and remedies provided for in this
Lease or at law or in equity or otherwise in the event of nonpayment of the
rent.

         Section 4.03 Net Lease; Non-Termination. This Lease is a net lease and
the rent and Additional Rent shall be paid without notice, demand, counterclaim,
set-off, deduction or defense and, without abatement, suspension, deferment,
diminution or reduction. Except as otherwise expressly provided in the Lease,
this Lease shall not terminate nor shall Lessee have any right to terminate this
Lease or be entitled to the abatement of any rent hereunder or any reduction
thereof, nor shall the obligations of Lessee under this Lease be otherwise
affected, by reason of (i) any damage to or destruction of all or any portion of
the Premises from whatever cause, (ii) any taking of all or any part of the
Premises by condemnation, requisition or otherwise, (iii) the prohibition,
limitation, or restriction of or interference with Lessee's use of all or any
portion of the Premises, (iv) any title defect or encumbrance or any eviction by
paramount title or otherwise, (v) failure on the part of Lessor to perform or
comply with any term, provision or covenant of this Lease or any other agreement
to which Lessor and Lessee may be parties, (vi) any bankruptcy, insolvency,
reorganization, composition, adjustment, dissolution, liquidation or other like
proceeding relating to Lessor, or any action taken with respect to this Lease by
any trustee or receiver of Lessor or by any court in which such proceedings so
long as the rights and interest of Lessee hereunder are not materially altered
by such proceeding, (vii) any claim which Lessee has or might have against

                                       -2-

<PAGE>   3

Lessor, or (viii) for any other cause whether similar or dissimilar to the
foregoing. Except as otherwise expressly provided in this Lease, Lessee waives
all rights now or hereafter conferred by statute or otherwise to quit, terminate
or surrender this Lease or the leasehold estate in the Premises or any part
thereof, or to any abatement, suspension, deferment, diminution or reduction of
the rent.

ARTICLE V. TAXES ASSESSMENTS AND CHARGES

         Section 5.01 Taxes and Assessments. Subject to the provisions of
Section 14.01 hereof, Lessee agrees to discharge and pay before the same become
delinquent and before any fine, penalty, or interest may be added for
nonpayment, any and all taxes, assessments, license fees, excises, imposts and
charges of every nature and classification (all or any one of which are herein
referred to as a "Tax") that at any time during the term of this Lease and any
extension hereof are levied, assessed, charged or imposed on the Premises, this
Lease, the leasehold estate of Lessee created hereby or any rent reserved or
payable hereunder including any gross receipts or other taxes levied upon,
assessed against or measured by the rent; provided, however, that Lessee shall
not be obligated to pay any income, inheritance or estate tax or any tax
imposed, levied or assessed with respect to or because of the income,
appreciation or other benefits derived by Lessor from or by virtue of this
Lease.

         Section 5.02 Charges. Subject to the provisions of Section 14.01
hereof, Lessee agrees that it shall pay when due all charges for all public or
private utility services including, but not limited to water, sewer, gas, light,
heat and air conditioning, telephone, electricity, trash removal, power and
other utility and communications services (all or anyone of which are herein
referred to as a "Charge") that at any time during the term of this Lease are
rendered with respect to the Premises.

         Section 5.03 General. Lessee agrees to deliver to Lessor, within thirty
(30) days after the same shall become due, receipts evidencing the payment of
any Tax or Charge required to be paid by Lessee. If any Tax or Charge may be
paid in installments, Lessee shall be obligated to pay only such installments as
they become due. Any Tax for the year in which this Lease commences and
terminates shall be prorated between Lessor and Lessee as of such dates.

ARTICLE VI. CONDITION AND USE OF THE PREMISES

         Section 6.01 Condition of the Premises. Lessee acknowledges that (i)
the Premises are in good order and condition and comply in all respects with the
requirements of this Lease, (ii) Lessor has made no representation or warranty
with respect to the condition of the Premises or their fitness or ability to be
used for any particular purpose and (iii) Lessee has made a complete inspection
of the Premises and that all risks with respect to the Premises are to be borne
by Lessee. Lessor leases and Lessee takes the Premises "as-is" with all faults
and defects.

                                       -3-

<PAGE>   4

         Section 6.02 Use of the Premises. Lessee may use the Premises for any
lawful retail purpose. Lessee shall not use the Premises or any portion thereof
for any other purpose without the prior written consent of Lessor. Lessee agrees
that the use or occupation of the Premises or any part thereof shall not violate
any permit, license or franchise with respect thereto, vitiate or increase the
rate of insurance with respect to the Premises, cause the value or usefulness
thereof to diminish or constitute a public or private nuisance or waste.

ARTICLE VII. COMPLIANCE WITH LAW LIENS AND ENCUMBRANCES

         Section 7.01 Compliance with Laws. Subject to the provisions of Section
14.01 hereof, Lessee, at its sole cost and expense, shall comply with and cause
the Premises and any improvements located thereon to comply with (i) all
federal, state, county, municipal and other government statutes, laws, rules,
regulations and ordinances affecting the Premises or any part thereof, or the
use thereof, including those which require the "Repairs", as that term is
defined in Section 8.01 hereof, "Alterations", as that term is defined in
Section 8.02 hereof, or any structural changes in the improvements whether or
not any such statutes, laws, rules, orders, regulations or ordinances which may
hereafter be enacted involve a change of policy on the part of the governmental
body enacting the same, (ii) all rules, orders and regulation of the National
Board of Fire Underwriters or other bodies exercising similar functions and
responsibilities in connection with the prevention of fire or the correction of
hazardous conditions which apply to the Premises and (iii) the requirements of
all policies of public liability, fire and other insurance which at the time may
be in force with respect to the Premises (any one of the items enumerated in
this Section 7.01 is herein referred to as a "Regulation" and all or more than
one of which are herein referred to as the "Regulations").

         Section 7.02 Liens and Encumbrances. Subject to the provisions of
Section 14.01 hereof, Lessee shall not create or permit to be created or to
remain, and, shall promptly discharge, at its sole cost and expense, any lien,
encumbrance or charge (each or all of which are herein referred to as "Lien") on
the Premises or any part thereof or on Lessee's leasehold estate hereunder that
arises from the use or occupancy of the Premises by Lessee or by reason of any
labor, service or material furnished or claimed to have been furnished to Lessee
or by reason of any construction, Alteration, Repair or demolition by Lessee of
all or any part the Premises. The existence of any Lien shall not constitute a
violation of this Section 7.02 if payment is not then due upon the contract or
for the material or services for which such Lien has been claimed. Notice is
hereby given that Lessor will not be liable for the cost and expense of any
labor, services or materials furnished or to be furnished with respect to the
Premises at or by the direction of Lessee or anyone holding the Premises or any
part thereof by, through or under Lessee and that no laborer's, mechanic's or
materialman's or other lien for such labor, services or materials shall attach
to or affect the interest of Lessor in and to the Premises or the fee simple
title in the Premises.

                                       -4-

<PAGE>   5

ARTICLE VIII. REPAIRS AND ALTERATIONS

         Section 8.01 Maintenance and Repair. Lessee, at its sole cost and
expense, shall keep the Premises in good order, condition and repair ordinary
wear and tear excepted and shall promptly make or cause to be made any and all
necessary or appropriate repairs, replacements, or renewals (herein collectively
referred as the "Repairs"). Lessor shall not be required to make any Repairs in,
on or to the Premises during the term of this Lease. Lessee hereby waives any
right to make repairs at the expense of Lessor which may or hereafter be
provided by statute or law.

         Section 8.02 Alterations and Additions. Lessee, at its sole cost and
expense, may make additions to, alterations and replacements of and
substitutions for the building and improvements (herein singularly referred to
as an "Alteration" and collectively referred to as the "Alterations"); provided,
however, that any Alteration shall (i) not reduce or diminish the market value
of the Premises; (ii) be performed in a good workmanlike manner and with such
materials and in such manner as is consistent in character and quality with
construction of the building; (iii) conform with all the requirements of this
Lease including, but not limited to, those under Section 7.01 and Article X
hereof and (v) be expeditiously completed free of any Lien and in compliance
with any applicable Regulation. If the aggregate cost of any Alteration shall
exceed Fifty Thousand Dollars ($50,000.00) or if the Alteration substantially
affects the exterior appearance of any part of the building and/or the
improvements located on the Premises, prior to the commencement thereof, Lessee
shall obtain the prior written consent of Lessor.

         Section 8.03 Inspection by Lessor. Lessor and its authorized
representatives may enter the Premises or any part thereof at all reasonable
times for the purpose of inspecting the same. Lessor shall not have any duty to
make any such inspection nor shall it incur any liability or obligation for not
making any such inspection.

ARTICLE IX. DAMAGE AND DESTRUCTION

         Section 9.01 Notices. If any damage to or destruction of all or any
part of the Premises occurs, Lessee will promptly give written notice thereof to
Lessor generally describing the nature and extent of such damage or destruction.

         Section 9.02 Total or Partial. If the Premises are (i) partially
damaged and restoration thereof cannot, in Lessor's sole discretion, be
completed within one hundred and fifty (150) days after the date of such
destruction or (ii) totally destroyed, Lessor, at its sole and exclusive option
by notice to Lessee given on or before sixty (60) days after the date of such
casualty, may terminate this Lease in which event the rent shall abate for the
unexpired portion of the term of this Lease effective as of the date of the
notice of termination. If this Lease is terminated, Lessor and Lessee shall be
released and discharged from any obligations or liabilities under this Lease
except for those which by there express terms survive the expiration or
termination of this Lease.

                                       -5-

<PAGE>   6

         Section 9.03 Restoration. If Lessor elects to restore the Premises
after a casualty (whether total or partial), Lessor shall, at its sole cost and
expense, proceed with reasonable diligence to restore the Premises to
substantially the same condition as they were prior to such casualty. During
such restoration, if all or a portion of the Premises are untenantable and the
damage or destruction was not caused in whole or in part by any negligent act or
omission of Lessee, its agents, employees, invitees or others for whom the
Lessee is responsible, the rent payable under this Lease during the period in
which the Premises are untenantable shall be adjusted in such a manner as is
fair and reasonable under the circumstances. If Lessor elects to restore the
Premises and thereafter fails to complete the necessary restoration of the
Premises to permit Lessee to reoccupy the Premises on or before one hundred and
fifty (150) days after the date such destruction, Lessee may, at its option and
as its sole right and exclusive remedy, terminate this Lease by notice to Lessor
given on or before thirty (30) days after the date on which the Premises were
required to be restored by Lessor. If this Lease is terminated, Lessor and
Lessee shall be released and discharged from any obligations or liabilities
under this Lease except for those which by there express terms survive the
expiration or termination of this Lease.

         Unless otherwise expressly provided in this Lease, there shall be no
abatement or reduction or any rent payable by Lessee under this Lease during the
Restoration or on account of such damage or destruction.

ARTICLE X. INSURANCE.

         Section 10.01 Classes of Insurance. Lessee shall keep the Premises
insured against the risks and hazards and with coverage in amounts not less than
those specified as follows:

                  A. Insurance against loss or damage to the Premises by fire
         and other risks customarily included under a standard ISO form of
         commercial property insurance with a special form coverage in an amount
         equal to the full and actual replacement cost, including the costs of
         debris removal, less physical depreciation of the improvements located
         on the Premises and with replacement cost endorsements and deductible
         provisions which do not exceed One Thousand and No/100 Dollars
         ($1,000.00);

                  B. General public liability and property damage insurance
         (including, but not limited to, coverage for any construction on or
         about the Premises) covering the legal liability of Lessor and Lessee
         against claims for any bodily injury or death of persons and for damage
         to or destruction of property occurring on, in or about the Premises
         and the adjoining streets, sidewalks and passageways and arising out of
         the use or occupation of the Premises by Lessee in the minimum amounts
         of One Million Dollars ($1,000,000.00) for each occurrence in
         connection with any one death or bodily injury, Three Million Dollars
         ($3,000,000.00) in connection with any single occurrence, and Five
         Hundred Thousand Dollars ($500,000.00) in connection with claims for
         property damage; and

                                       -6-

<PAGE>   7

                  C. Such other insurance on the Premises in such amounts and
         against such other insurable hazards which at the time are commonly
         obtained in the case of property similar to the Premises, due regard
         being given to the height and type off the improvements and their
         construction, composition, location and use.

         Section 10.02 Requirements. All insurance required under Section 10.01
hereof shall be written by companies of recognized financial standing i.e., A
Best Rating of at least A and a Financial Size Category of at least XI which are
authorized to do insurance business in the state where the Premises are located;
shall name as the insured parties Lessor and Lessee, as their respective
interest may appear; shall be reasonably satisfactory to Lessor in all respects
and shall specifically provide (i) an effective waiver by the insurer of all
rights of subrogation against any named insured or such insured's interest in
the Premises or any income derived therefrom, (ii) that all insurance proceeds
for losses shall be adjusted by Lessor, (iii) that all insurance proceeds shall
be payable to Lessor for the benefit of Lessor and Lessee, as their respective
interests may appear, (iv) that no cancellation, reduction in amount or material
change in coverage thereof shall be effective until at least ten (10) days after
receipt by Lessor and Lessee of written notice thereof, and (v) that during
construction of improvements on the Premises such policies shall be in
"Builder's Risk" form. Lessee, at its cost and expense, shall permit Lessor to
examine all policies evidencing the insurance required to be maintained by
Lessee under this Lease. Nothing contained in this Lease shall be construed to
require Lessor to prosecute any claim against any insurer or to contest any
settlement proposed by any insurer.

         Section 10.03 Certificates. Lessee shall deliver to Lessor promptly
after the execution and delivery of this Lease and on each anniversary of the
date of this Lease, a certificate addressed to Lessor, signed by Lessee and
dated within thirty (30) days prior to the delivery thereof (i) listing the
insurers and policy numbers evidencing all the insurance then required to be
maintained by Lessee hereunder and (ii) certifying that said insurance is in
full force and effect and that such insurance and the policies evidencing the
same comply with the requirements of this Lease. Lessee's failure to effect,
maintain or renew any insurance provided for in this Article X, to pay the
premiums therefor or to deliver to Lessor any of such certificates shall entitle
Lessor, at its option but without obligation, upon ten (10) days notice to
Lessee, to procure such insurance, pay the premiums therefor or obtain such
certificates and any sums expended by Lessor for such purposes shall be
Additional Rent hereunder and shall be repaid by Lessee within ten (10) days
following the date on which such expenditure shall be made by Lessor.

         Section 10.04 General. Lessee shall not obtain or carry separate
insurance concurrent in form or contributing in the event of loss in addition to
the insurance required under Section 10.01 hereof unless Lessor is included
therein as a named insured, with loss payable as in this Lease provided. Lessee
shall promptly notify Lessor whenever any such separate insurance is obtained
and shall, if requested, deliver to Lessor the policy, policies or certificates
evidencing the same.

                                       -7-

<PAGE>   8

ARTICLE XI. INDEMNIFICATION

         Section 11.01 Indemnification. Lessee agrees to defend, indemnify and
save harmless Lessor from and against any and all liability, loss, damage, cost,
expense including all attorney's fees and expenses of Lessee and of Lessor,
causes of action, suits, claims, demands or judgments of any nature whatsoever
(i) arising from any injury to or to the death of any person or damage to any
property occurring on the Premises or on adjoining sidewalks, streets or ways,
(ii) in any manner arising out of or connected with the use, non-use, condition
or occupation of the Premises or any part thereof or of adjoining sidewalks,
streets or ways or (iii) resulting from the violation by Lessee of any term,
condition or covenant of this Lease or of any contract, agreement, restriction
or Regulation affecting the Premises or any part thereof or the ownership,
occupancy or use thereof. The obligations of Lessee under this Section 11.01
shall survive the expiration or earlier termination of this Lease and any
transfer or assignment by Lessor or Lessee of this Lease or any interest
hereunder.

ARTICLE XII. OWNERSHIP OF IMPROVEMENTS

         Section 12.01 Title to Improvements. Ownership of and title to the
building, the improvements and all machinery and equipment now or hereafter
constructed, installed or placed by Lessee on the Premises and all Alterations
thereto when constructed, installed or placed on the Premises, shall be and
remain in Lessor. Any improvements constructed by Lessee on the Premises,
whether by obligation created hereunder or otherwise, shall not in any way
constitute a substitute for or a credit against any obligation of Lessee under
this Lease to pay rent or Additional Rent.

         Section 12.02 Surrender. On the expiration or earlier termination of
the term of this Lease, Lessee shall peaceable quit and surrender the Premises
to Lessor, any and all machinery and equipment and all Alterations constructed,
installed or placed by Lessee thereon in good order and condition, ordinary wear
and tear excepted. If there is not then a Default under this Lease, Lessee shall
have the right upon the expiration of the term of this Lease to remove from the
Premises all machinery and equipment placed or installed by Lessee thereon. Any
machinery and equipment not removed by Lessee on or before the termination of
this Lease shall become the property of Lessor immediately upon such
termination.

         Section 12.03 Removal of Improvements. Lessee, at its sole cost and
expense, shall, upon Lessor's written request therefor, promptly remove all or
any part of the improvements, machinery and equipment from the Premises
subsequent to the expiration or earlier termination of this Lease. Lessee, at
its sole cost and expense, shall repair any damage caused thereby to the
Premises or any improvements, buildings or structures remaining thereon.

ARTICLE XIII. ASSIGNMENT AND SUBLETTING

         Section 13.01 Assignment with Consent. Lessee shall have the right to
assign all of its interest in, to and under this Lease for any portion of the
unexpired term hereof at any time to any

                                       -8-

<PAGE>   9

person or entity (herein referred to as the "Assignee") provided that (i) the
Assignee is approved and accepted by any franchisor under any franchise
agreement or license pursuant to which the improvements on the Premises are
operated, (ii) the Assignee shall be approved and accepted by Lessor which
approval and acceptance shall be based upon the net worth of the Assignee being
sufficient to insure the timely performance of all terms, conditions,
provisions, agreements and covenants to be observed, performed and complied with
by Lessee under the provisions of this Lease, (iii) Lessee delivering to Lessor
an assumption agreement duly executed by the Assignee, in substance and form
satisfactory to Lessor and its counsel, legally effective to cause the Assignee
to assume all of the terms, conditions, provisions, agreements and covenants to
be observed, performed or complied with by Lessee under this Lease, (iv) the
Assignee shall have paid or caused to be paid all rent and Additional Rent and
other sums required to be paid hereunder to and including the date of such
assumption, and (v) the Assignee completely and totally remedying or curing any
Default existing prior to the date of such assumption so that, at the time of
such assumption, there shall exist no Default or event which, with notice or
lapse of time, or both, would constitute a Default. Any assignee of Lessee's
interest under this Lease, immediate or remote, shall have like power of
assignment on the same conditions and subject to the same restrictions as those
imposed on Lessee under this Section 13.01.

         Section 13.02 Subleases. Lessee shall have the right to sublease all or
any portion of the Premises without the consent or approval of Lessor. In no
event shall any sublease relieve the Lessee of any of its obligations under this
Lease, including the payment of the rent.

         Section 13.03 Termination of Subleases. If this Lease is terminated by
Lessor prior to the expiration of the term hereof, Lessor agrees that, subject
to the conditions hereinafter set forth, such termination shall not result in a
termination of any bona fide sublease entered into by Lessee pursuant to Section
13.02 hereof of all or any portion of the Premises and that any such sublease
shall continue for the duration of its term and any extension thereof as a
direct lease between Lessor and the sublessee thereunder with the same force and
effect as if Lessor hereunder had originally entered into such sublease as the
lessor thereunder. The application of the provisions of this Section 13.03 shall
be conditioned upon (i) the sublease being submitted to Lessor for recognition
and Lessor failing to object thereto by written notice to the sublessee at its
address shown in the lease within thirty (30) days after the date of the receipt
thereof by Lessor, (ii) the sublessee under the lease agreeing, in the event of
the termination of this Lease, to attorn to Lessor, (iii) the sublease being in
good standing at the time of the termination of this Lease and (iv) that the
sublease be for a use authorized and not prohibited by the provisions of Section
6.02 hereof. On the satisfaction of the foregoing conditions and on request and
at Lessee's expense, Lessor agrees to execute, acknowledge and deliver such
reasonable agreements evidencing and agreeing to the foregoing as said sublessee
may reasonably require.

ARTICLE XIV. RIGHT TO CONTEST.

         Section 14.01 Permitted Contests. Lessee, at its expense, may contest
(by appropriate legal

                                       -9-

<PAGE>   10

proceedings conducted in good faith and with due diligence) the amount, validity
or application, in whole or in part, of any Tax, Charge, Regulation or Lien
provided that (i) Lessee shall give Lessor prior written notice of such contest,
(ii) Lessee shall first make all contested payments (under protest if it
desires) unless such proceeding shall suspend the collection thereof from Lessor
and from the rent under this Lease or from the Premises, (iii) no part of the
Premises or any interest therein or the rent under this Lease shall be exposed
or subjected thereby to sale, forfeiture, foreclosure or interference, (iv)
Lessor shall not be exposed thereby to any civil or criminal liability for
failure to comply with any Regulation and the Premises shall not be subject to
the imposition of any Lien as a result of such failure and (v) Lessee shall have
furnished any security required in such proceeding or under this Lease or
reasonably requested by Lessor to insure payment of any Tax, Charge, Lien or
compliance with any Regulation. Lessee agrees to pay and save Lessor harmless
from and against any and all losses, judgments, decrees and costs including all
attorney's fees and expenses in connection with such contest, promptly after the
final determination of such contest, pay and discharge the amounts which shall
be levied, assessed, charged or imposed or be determined to be payable therein
together with all penalties, fines, interest, costs and expenses resulting
therefrom and will promptly comply with any Regulation under which compliance is
required. The obligations of Lessee under this Section 14.01 shall survive the
expiration or earlier termination of this Lease and any transfer or assignment
by Lessor or Lessee of this Lease or any interest hereunder.

ARTICLE XV. CONDEMNATION

         Section 15.01 Total. If all or any portion of the Premises is taken for
any public or quasi-public use under any governmental law, ordinance or
regulation or by right of eminent domain or by private purchase in lieu thereof
and the taking would prevent the use of the Premises for the purpose for which
they are then being used, this Lease shall terminate and the rent shall be
abated during the unexpired portion of the term of this Lease effective on the
date the condemning authority takes possession of the Premises. Lessor shall
notify Lessee in the event Lessor receives notice of a proposed taking.

         Section 15.02 Partial. If a portion of the Premises shall be subject to
a taking and this Lease is not terminated as provided in Section 15.01 hereof,
Lessor, at its sole and exclusive option, may either (i) terminate this Lease by
notice to Lessee effective as of the date which is ninety (90) days after the
date of such notice or (ii) restore and reconstruct the Premises and any other
improvements situated on the Premises to the extent necessary to make the
Premises tenantable. If Lessor elects to restore the Premises, the rent payable
under this Lease for the unexpired portion of the term of this Lease shall be
equitably adjusted to reflect the effects of the taking.

         Section 15.03 Award. In any taking of all or a portion of the Premises,
Lessor shall be entitled to receive all of the award made in connection
therewith, including, without limitation, any award for the value of the
unexpired term of this Lease. Lessee shall not be entitled to receive any award
for the loss of its leasehold advantage. If there is an allocation in the award
made to Lessor for moving or business interruption expenses of Lessee, Lessor
shall pay such designated portion

                                      -10-

<PAGE>   11

of the award to Lessee on or before fifteen (15) days after its actual receipt
thereof. Notwithstanding anything contained herein to the contrary, Lessor shall
not be obligated to seek recovery of such expense for or on behalf of Lessee.

ARTICLE XVI. DEFAULT

         Section 16.01 Events of Default. The occurrence of any of the following
acts, events or conditions (herein referred to as a "Default") regardless of the
pendency of any proceeding which has or might have the effect of preventing
Lessee from complying with the terms, conditions or covenants of this Lease,
shall constitute a default on an event of default under this Lease.

                  A. Lessee fails to make any payment of rent or Additional Rent
         required to be paid by Lessee or to fulfill or perform any other
         covenants, agreements or obligations of Lessee hereunder and such
         failure continues for ten (10) days after the payment is due or the
         performance required.

                  B. The Premises are abandoned or left unoccupied for a period
         of thirty (30) consecutive days and Lessee does not deliver to Lessor
         during such period a written certification that Lessee is prevented
         from occupying the Premises by circumstances beyond its control and
         describing said circumstances and that Lessee intends to reoccupy the
         Premises on the termination of such circumstances.

                  C. The estate or interest of Lessee in the Premises is levied
         on or attached in any proceedings and such process in not vacated or
         discharged within thirty (30) days after the date of such levy or
         attachment.

         Section 16.02 Termination. On the occurrence of any Default hereunder,
Lessor shall have the right, at its election and regardless of the availability
to Lessor of any other remedy under this Lease or by law or in equity provided,
to give Lessee then or at any time thereafter while any such Default exists or
continues written notice of the termination of this Lease as of the date
specified in such notice of termination, which date shall be not less than ten
(10) days after the date of the giving of such notice. On such termination date
this Lease and the term and estate herein granted shall, subject to the
provisions of Section 16.05 hereof, expire and terminate by limitation, and all
rights of Lessee under this Lease shall expire and terminate, unless prior to
such termination date, Lessee pays to Lessor all arrears of rent and Additional
Rent payable by Lessee under this Lease together with interest thereon at the
rate of 10% per annum and all cost and expenses, including, without limitation,
attorney's fees and expenses incurred by or on behalf of Lessor by reason of any
Default and fully remedy any other Default then existing to the satisfaction of
Lessor.

         Section 16.03 Reentry by Lessor. Whether or not this Lease has been
terminated pursuant to Section 16.02 hereof, if a Default occurs, Lessor may,
for and on behalf of Lessee and as Lessee's legal representative, enter upon and
repossess the Premises or any part thereof by force, summary

                                      -11-

<PAGE>   12

proceedings, ejectment or otherwise and may remove Lessee and all other persons
and any and all property therefrom. Lessor shall not be liable to Lessee or to
any person or entity claiming by, through or under Lessee for or by reason of
any such entry, repossession or removal.

         Section 16.04 Rights upon Repossession. At any time or from time to
time after the repossession of the Premises or any part thereof pursuant to
Section 16.03 hereof and whether or not this Lease shall have been terminated
pursuant to Section 16.02 hereof, Lessor may at its option (i) repair or alter
the Premises in such manner as Lessor may deem necessary or advisable so as to
put the Premises in good order and make the same rentable and (ii) relet or
operate the Premises or any part thereof for the account of Lessee for such term
or terms which may be greater or less than the period which would otherwise have
constituted the remainder of the term of this Lease on such conditions which may
include concessions or free rent and for such uses as Lessor in its discretion
may determine, and may collect and receive the rents therefor. Lessor shall not
be responsible or liable for any failure to collect any rent due upon any such
reletting. No repossession of the Premises by Lessor shall be construed as an
election to terminate this Lease and the term herein demised unless, in
connection therewith, a written notice of termination evidencing such intention
is given to Lessee as provided in Section 16.02 hereof.

         Section 16.05 Liability of Lessee. No termination of this Lease
pursuant to Section 16.02 hereof or by operation of law or otherwise except as
expressly provided herein and no repossession of the Premises or any part
thereof pursuant to Section 16.03 hereof or otherwise, shall relieve Lessee of
its liabilities and obligations hereunder, all of which shall survive such
termination or repossession.

         Section 16.06 Right of Lessor to Perform for Lessee. Notwithstanding
any other provision of this Lease to the contrary, upon the occurrence of any
Default, Lessor, at its exclusive option on behalf of Lessee, may take whatever
steps it deems reasonably necessary to cure any Default and to charge Lessee for
the cost and expenses attributable thereto. Lessee shall pay all costs and
expenses immediately upon receipt of a statement thereof from Lessor. Any
amounts not so paid shall be deemed Additional Rent hereunder.

         Section 16.07 General. Each right, power and remedy of Lessor provided
in this Lease or now or hereafter existing at law or in equity or by statute or
otherwise shall be cumulative and concurrent and shall be in addition to each
and every other right, power or remedy provided in this Lease or now or
hereafter existing at law or in equity or by statute or otherwise. In addition
to any other remedy provided in this Lease, Lessor shall be entitled, to the
extent permitted by applicable law, to injunctive relief in the event of the
violation or attempted or threatened violation of any term, condition or
covenant of this Lease or to a decree compelling performance thereof. The
exercise by Lessor of any one or more of the rights, powers or remedies provided
in this Lease or now or hereafter existing at law or in equity or by statute or
otherwise shall not preclude the simultaneous or later exercise by Lessor of any
such right, power or remedy. Lessor shall have no obligations to mitigate any
damages it may incur by reason of default of Lessee.

                                      -12-

<PAGE>   13

ARTICLE XVII. LIABILITY OF LESSOR

         Section 17.01 Limitation on Liability. Notwithstanding anything
contained in this Lease or otherwise at law to the contrary, Lessee agrees that
Lessor and its partners, shall have no personal liability under this Lease and
that, in any action brought to enforce the covenants, agreements and warranties
of Lessor under this Lease, Lessee shall in no event be entitled to seek and
shall not seek any damages against Lessor or any of its partners for the breach
or default of any covenant, warranty or agreement under this Lease and any
judgment or decree against Lessor or any of its partners shall be enforceable
against Lessor and any of its partners only to the extent of its interest in the
Premises. Any judgment or decree shall not be subject to enforcement and
execution against any other asset of Lessor or any of its partners. In the event
of the sale or other transfer of the Premises, all obligations of Lessor
hereunder shall be transferred to the new owner of the Premises as of the date
of the sale of the Premises and Lessor shall have no obligations or liability,
as landlord, from and after the date of the sale or transfer of the Premises.

ARTICLE XVIII. MISCELLANEOUS

         Section 18.01 Waiver. The failure of Lessor to insist on the strict
performance by Lessee of any term, condition or covenant on Lessee's part to be
performed pursuant to the terms of this Lease or to exercise any option, right,
power or remedy of Lessor contained in this Lease shall not be deemed nor
construed as a waiver of such performance or relinquishment of such right now or
subsequent hereto. The receipt by Lessor of any rent or Additional Rent required
to be paid by Lessee hereunder with knowledge of any Default by Lessee shall not
be deemed a waiver of such Default. No waiver by Lessor of any provision of this
Lease shall be deemed to have been made unless expressed in writing and signed
by Lessor.

         Lessee hereby waives and surrenders any right or privilege under any
present or future constitution, statute or law to redeem the Premises or to
continue this Lease for the term herein demised after the termination of this
Lease and the benefits of any present or future constitution, statute or rule of
law which exempts property from liability for debt or for distress for rent.

         Section 18.02 Estoppel Certificates. Lessee shall execute, acknowledge
and deliver to Lessor and to any mortgagee of Lessor upon request, a written
statement certifying (i) that this Lease is unmodified and in full force and
effect or if there have been modifications, that the Lease is in full force and
effect as modified, and stating the modifications, (ii) the dates to which rent
and Additional Rent payable by Lessee hereunder have been paid and (iii) that no
notice has been received by Lessee of any Default which has not been cured,
except as to any Default specified in said certificate.

         Lessor shall execute, acknowledge and deliver to Lessee a written
certificate certifying (i) that this Lease is unmodified and in full force and
effect or if there have been modifications, that this Lease is in full force and
effect as modified, and stating the modifications, (ii) the dates to which rent
and Additional Rent payable by Lessee hereunder have been paid and (iii) whether
or not, to the

                                      -13-

<PAGE>   14

knowledge of Lessor, there is then existing any Default under this Lease and if
so, specifying the same.

         Section 18.03 No Merger of Title. There shall be no merger of the
leasehold estate created by this Lease with the leasehold estate of Lessor and
or the fee estate in the Premises by reason of the fact that the same person may
own or hold both the leasehold estate created by this Lease or any interest
therein, the leasehold estate or the fee estate in the Premises by reason of the
fact that the same person may own or hold both the leasehold estate created by
this Lease or any interest therein, the leasehold estate or the fee estate in
the Premises or any interest therein; and no such merger shall occur unless and
until all persons or entities having any interest in the leasehold estate
created by this Lease or the fee estate in the Premises shall join in a written
instrument effecting such merger and shall duly record the same.

         Section 18.04 Transfer by Lessor. If Lessor shall transfer or assign or
otherwise dispose of its interest under this Lease, it shall thereupon be
released and discharged from any and all liabilities and obligations under this
Lease except those accruing prior to such transfer, assignment or other
disposition and such liabilities and obligations shall thereafter be binding
upon the assignee of Lessor's interest under this Lease.

         Section 18.05 Separability. Each and every covenant and agreement
contained in this Lease shall be for any and all purposes hereof construed as
separate and independent and the breach of any covenant by Lessor shall not
discharge or relieve Lessee from its obligation to perform each and every
covenant and agreement to be performed by Lessee under this Lease. All rights,
powers and remedies provided herein may be exercised only to the extent that the
exercise thereof does not violate applicable law and shall be limited to the
extent necessary to render this Lease valid and enforceable. If any term,
provision or covenant of this Lease or the application thereof to any person or
circumstances shall be held to be invalid, illegal or unenforceable, the
validity of the remainder of this Lease or the application so such term,
provision or covenant to persons or circumstances other than those to which it
is held invalid or unenforceable shall not be affected hereby.

         Section 18.06 Notices Demands and Other Instruments. All notices,
demands, requests, consents, approvals and other instruments required or
permitted to be given pursuant to the terms of this Lease shall be in writing
and shall be deemed to have been properly given if sent by first class
registered or certified United States mail, return receipt requested, addressed
to each party hereto at the following address:

                  Lessor:             c/o K&G Associates, Inc.
                                      1750-A Ellsworth Industrial Boulevard
                                      Atlanta, Georgia 30318
                                      Attention: Stephen H. Greenspan

                                      -14-

<PAGE>   15

                  Lessee:             T&C Liquidators, Inc.
                                      3417 E. John W. Carpenter Freeway
                                      Irving, Texas 75062
                                      Attention: Richard M. Vehon

or at such other address in the United States as Lessor or Lessee may from time
to time designate in writing delivered to the other party.

         Section 18.07 Successors and Assigns. Each and every covenant, term,
condition and obligation contained in this Lease shall apply to and be binding
upon and inure to the benefit or detriment or the respective legal
representatives, successors and permitted assigns of Lessor and Lessee. Whenever
reference to the parties hereto is made in this Lease, such reference shall be
deemed to include the legal representatives, successors and assigns of said
party the same as if in each case expressed. The term "person" when used in this
Lease shall mean any individual, corporation, limited liability company,
partnership, firm, trust, joint venture, business association, syndicate,
government or governmental organization or any other entity.

         Section 18.08 Headings. The headings to the various sections of this
Lease have been inserted for purposes of reference only and shall not limit or
define the express terms and provisions of this Lease.

         Section 18.09 Counterparts. This Lease may be executed in any number of
counterparts, each of which is an original, but all of which shall constitute
one instrument.

         Section 18.10 Applicable Law. This Lease shall be construed under and
enforced in accordance with the law of the State of Georgia.

         Section 18.11 Exhibits. Exhibit A attached hereto is by this reference
incorporated herein and made a part hereof.

         Section 18.12 Entire Agreement; Amendments. This Lease sets forth the
entire understanding and agreement of Lessor and Lessee with respect to the
Premises. All courses of dealing, usage of trade and all prior representations,
promises, understandings and agreements, whether oral or written, are superseded
by and merged into this Lease. No modification or amendment of this Lease shall
be binding on Lessee and/or Lessor unless in writing and signed by both parties
hereto.

         Section 18.13 All Genders and Numbers Included. Whenever the singular
or plural number, or masculine, feminine, or neuter gender is used in this
Lease, it shall equally apply to, extend to, and include the other.

         Section 18.14 Time is of Essence. All time limits stated in this Lease
are of the essence.

         Section 18.15 Memorandum of Lease. Lessor and Lessee hereby agree that
this Lease shall

                                      -15-

<PAGE>   16

not be recorded in the public records of Dallas, County, Texas. Lessor and
Lessee may, contemporaneously with the execution of this Lease, execute a
memorandum of this Lease, in recordable form satisfactory to Lessor and Lessee,
wherein a legal description of the Premises, the term of this Lease and certain
other terms and provisions hereof, excepting, however, the provisions hereof
relating to the amount of the rent payable hereunder, shall be set forth. The
memorandum of this Lease shall be filed for record with the Clerk of the
Superior Court of Dallas County, Texas. Any and all recording cost and stamps,
if any, required in connection with the recording of the memorandum of this
Lease shall be at sole cost and expense of Lessee.

         IN WITNESS WHEREOF, Lessor and Lessee have caused these presents to be
duly executed and their seals to be affixed hereunto as of the day and year
first above written.

Signed, sealed and delivered                                  "LESSOR"
delivered in the presence of:

/s/ J. SAUER                                     /s/ STEPHEN H. GREENSPAN (SEAL)
---------------------------------                -------------------------------
Witness                                          STEPHEN H. GREENSPAN

/s/ KEELA BISHOP
---------------------------------
Notary Public

                                  [NOTARY SEAL]

                                      -16-

<PAGE>   17

Signed, sealed and delivered
delivered in the presence of:

/s/ J. SAUER                                     /s/ PAUL RUBEN (SEAL)
---------------------------------                -------------------------------
Witness                                          PAUL RUBEN

/s/ KEELA BISHOP
---------------------------------
Notary Public

                                    [NOTARY SEAL]

Signed, sealed and delivered
delivered in the presence of:

/s/ J. SAUER                                     /s/ RICHARD M. VEHON (SEAL)
---------------------------------                -------------------------------
Witness                                          RICHARD M. VEHON

/s/ KEELA BISHOP
---------------------------------
Notary Public

                                  [NOTARY SEAL]

Signed, sealed and delivered                                  "LESSEE"
delivered in the presence of:

/s/ J. SAUER                                     T&C LIQUIDATORS, INC.,
---------------------------------                a Georgia corporation
Witness

/s/ KEELA BISHOP                                 By: /s/ STEPHEN H. GREENSPAN
---------------------------------                   ----------------------------
Notary Public                                    Its:
                                                     ---------------------------

                                  [NOTARY SEAL]                [CORPORATE SEAL]

                                      -17-

<PAGE>   18

                                   EXHIBIT "A"

                               TITLE ENCUMBRANCES

1.       Visible easements on the property.

2.       An easement for utilities, 6 feet in width as shown by the plat
         recorded in Volume 402, Page 1437, Map Records, Dallas County, Texas.
         Affects: North and West sides of Lot 4.

3.       An easement for utilities, 6 feet in width as shown by the plat
         recorded in Volume 402, Page 1437, Map Records, Dallas County, Texas.
         Affects: Southwest side of Lot 5.

4.       Part of Irving Flood Control District Section I as set out in
         instrument filed 8/31/89, recorded in Volume 89170, Page 1576, Real
         Property Records, Dallas County, Texas.

5.       Building Line 25 feet from Royalty Row and along Southwest side as
         shown by plat recorded in Volume 402, Page 1437, Map Records of Dallas
         County, Texas.

6.       Subject to the Order Adopting Airport Zoning Regulations of the
         Dallas-Fort Worth Regional Airport, Ordinance No. 71-100, imposed by
         the Joint Airport Zoning Board of the Dallas-Fort Worth Regional
         Airport, filed September 2, 1982, recorded in Volume 82173, Page 0178,
         Real Property Records of Dallas County, Texas, and in Volume 7349, Page
         1106, Real Property Records, Tarrant County, Texas.

7.       All other matters in the public records.

                                      -18-

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