Document:

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                               EXHIBIT 10.1

                             CREDIT AGREEMENT
                                  AMONG
                          COMERICA BANK - TEXAS,
               as Administrative Agent for itself and other Banks,
                    LASALLE BANK NATIONAL ASSOCIATION,
      as Collateral Agent and Syndication Agent for itself and other Banks,

                                   and

                    FFE TRANSPORTATION SERVICES, INC.,
                               as Borrower,
                         and certain of its affiliates

                            As of May 30, 2002

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                               TABLE OF CONTENTS
                                                                      PAGE
                                                                      ----

ARTICLE I      DEFINITIONS..............................................1

  Section 1.1    Definitions............................................1
  Section 1.2    UCC Changes...........................................15

ARTICLE II     AMOUNTS AND TERMS OF CREDIT COMMITMENTS.................16

  Section 2.1    Commitments...........................................16
  Section 2.2    The Notes.............................................16
  Section 2.3    Repayment of Loans....................................17
  Section 2.4    Interest and Fees.....................................17
  Section 2.5    Borrowing Procedure...................................19
  Section 2.6    Optional Prepayments, Conversions and
                 Continuations of Loans................................19
  Section 2.7    Mandatory Prepayments.................................19
  Section 2.8    Minimum Amounts.......................................20
  Section 2.9    Certain Notices.......................................20
  Section 2.10   Use of Proceeds.......................................21
  Section 2.11   Fees..................................................21
  Section 2.12   Computations..........................................22
  Section 2.13   Termination or Reduction of Commitments...............22
  Section 2.14   Letters of Credit.....................................22
  Section 2.15   Method of Payment.....................................25
  Section 2.16   Pro Rata Treatment....................................26
  Section 2.17   Sharing of Payments, Etc..............................26
  Section 2.18   Non-Receipt of Funds by Administrative Agent..........26
  Section 2.19   Withholding Taxes.....................................27
  Section 2.20   Withholding Tax Exemption.............................28
  Section 2.21   Reinstatement of Obligations..........................28
  Section 2.22   Additional Costs......................................29
  Section 2.23   Limitation on Types of Loans..........................30
  Section 2.24   Illegality............................................30
  Section 2.25   Treatment of Affected Loans...........................31
  Section 2.26   Compensation..........................................31
  Section 2.27   Capital Adequacy......................................32

ARTICLE III    CONDITIONS PRECEDENT....................................32

  Section 3.1    Conditions Precedent to Initial Loans and Letters
                 of Credit.............................................32
  Section 3.2    Conditions of Subsequent Advances.....................35
  Section 3.3    Effect of Request for any Subsequent Advance or
                 Conversion or Continuation, or Request for Letter
                 of Credit.............................................36
  Section 3.4    Landlord Lien Waivers.................................36
  Section 3.5    Title Reports.........................................36

ARTICLE IV     CERTAIN REPRESENTATIONS AND WARRANTIES..................36

  Section 4.1    Corporate Existence and Authority; Names..............36
  Section 4.2    Financial Statements..................................37
  Section 4.3    Compliance with Laws and Documents; Existing
                 Defaults..............................................37
  Section 4.4    Enforceability........................................37
  Section 4.5    Payment of Taxes......................................37
  Section 4.6    Plan Obligations......................................38
  Section 4.7    Purpose of Advances and Letters of Credit.............38
  Section 4.8    Ownership of the Companies............................38
  Section 4.9    Existing Indebtedness.................................38
  Section 4.10   Rights in Properties; Existing Liens..................38
  Section 4.11   Material Agreements...................................39
  Section 4.12   Environmental Matters.................................39
  Section 4.13   Common Enterprise.....................................39
  Section 4.14   Workers' Compensation.................................39
  Section 4.15   Solvency..............................................39

ARTICLE V      CERTAIN COVENANTS OF THE COMPANIES......................40

  Section 5.1    Affirmative Covenants.................................40
  Section 5.2    Negative Covenants....................................47

ARTICLE VI     DEFAULT.................................................50

  Section 6.1    Payment of Obligations................................50
  Section 6.2    Covenants.............................................50
  Section 6.3    Misrepresentation.....................................50
  Section 6.4    Voluntary Debtor Relief...............................51
  Section 6.5    Involuntary Debtor Relief.............................51
  Section 6.6    Judgments.............................................51
  Section 6.7    Attachment............................................51
  Section 6.8    Default of Other Debt.................................51
  Section 6.9    Other Agreements......................................51
  Section 6.10   Change in Control.....................................51

ARTICLE VII    REMEDIES................................................52

  Section 7.1    Acceleration..........................................52
  Section 7.2    Loans and Letters of Credit...........................52
  Section 7.3    Judgment..............................................52
  Section 7.4    Rights................................................52
  Section 7.5    Default with Respect to Base Rate Loans...............52
  Section 7.6    Default with Respect to LIBOR Loans...................52
  Section 7.7    Default with Respect to Letters of Credit.............52
  Section 7.8    Automatic Acceleration Due to Certain Defaults........53

ARTICLE VIII   AGENTS..................................................53

  Section 8.1    Administrative Agent Appointment and
                 Authorization; Administration; Duties.................53
  Section 8.2    Collateral Agent Appointment and Authorization;
                 Administration; Duties................................54
  Section 8.3    Advances and Payments.................................55
  Section 8.4    Sharing of Setoffs....................................55
  Section 8.5    Liability of Agents...................................56
  Section 8.6    Reimbursement and Indemnification.....................57
  Section 8.7    Rights of Administrative Agent and Collateral
                 Agent.................................................57
  Section 8.8    Independent Investigation and Credit Decision by
                 Banks.................................................57
  Section 8.9    Successor Agents......................................58
  Section 8.10   Syndication Agent.....................................58

ARTICLE IX     MISCELLANEOUS...........................................58

  Section 9.1    Performance by Agents and the Banks...................58
  Section 9.2    Waivers...............................................59
  Section 9.3    Cumulative Rights.....................................59
  Section 9.4    Other Rights and Remedies.............................59
  Section 9.5    Expenditures of Administrative Agent and Banks........59
  Section 9.6    Form and Number of Documents..........................59
  Section 9.7    Accounting Terms......................................60
  Section 9.8    Money.................................................60
  Section 9.9    Headings..............................................60
  Section 9.10   Articles, Sections, Exhibits and Schedules............60
  Section 9.11   Number and Gender of Words............................60
  Section 9.12   Business Day..........................................60
  Section 9.13   Notices...............................................60
  Section 9.14   Parties Bound.........................................60
  Section 9.15   Exceptions to Covenants...............................61
  Section 9.16   Successors and Assigns................................61
  Section 9.17   Effect of Investigations..............................63
  Section 9.18   GOVERNING LAW; VENUE; SERVICE OF PROCESS..............63
  Section 9.19   Maximum Interest Rate.................................64
  Section 9.20   Invalid Provisions....................................65
  Section 9.21   Entirety and Amendments...............................65
  Section 9.22   Survival..............................................66
  Section 9.23   Setoff................................................66
  Section 9.24   Multiple Counterparts.................................66
  Section 9.25   Term of Agreement.....................................66
  Section 9.26   Limitation of Liability...............................66
  Section 9.27   No Fiduciary Relationship.............................66
  Section 9.28   Construction..........................................67
  Section 9.29   Waiver and Release....................................67
  Section 9.30   NO ORAL AGREEMENTS....................................67
  Section 9.31   Joint and Several Obligations.........................67
  Section 9.32   WAIVER OF JURY TRIAL..................................67

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                              CREDIT AGREEMENT

    THIS CREDIT AGREEMENT is entered into as of May 30, 2002, among FFE
TRANSPORTATION SERVICES, INC., a Delaware corporation ("Borrower"), FROZEN
FOOD EXPRESS INDUSTRIES, INC., a Texas corporation ("Parent"), FFE, INC., a
Delaware corporation ("FFE"), CONWELL CORPORATION, a Delaware corporation
("Conwell"), AIRPRO HOLDINGS, INC. (formerly known as W&B Refrigeration
Service Company), a Delaware corporation ("AirPro"), LISA MOTOR LINES, INC.,
a Delaware corporation ("LML"), FROZEN FOOD EXPRESS, INC., a Texas
corporation ("Express"), CONWELL CARTAGE, INC., a Texas corporation
("Cartage"), MIDDLETON TRANSPORTATION COMPANY, a Texas corporation
("Middleton"), COMPRESSORS PLUS, INC., a Texas corporation ("CPI"), FFE
LOGISTICS, INC. (formerly known as AEL Transports, Inc.), a Delaware
corporation ("Logistics"), LASALLE BANK NATIONAL ASSOCIATION, a national
banking association ("LaSalle"), COMERICA BANK-TEXAS, a Texas banking
association ("Comerica"), each other entity which may from time to time
become party hereto as a lender hereunder or any successor or assignee
thereof (such lenders and the Issuing Bank, collectively, the "Banks"),
Comerica as Administrative Agent and as Issuing Bank, and LaSalle as
Syndication Agent and as Collateral Agent.
For good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the parties hereto hereby agree as follows:

                                ARTICLE I
                               DEFINITIONS

Section 1.1 Definitions.  As used herein, meanings indicated the
following terms shall have the meanings indicated:

"Additional Costs" shall have the meaning set forth in Section 2.22(a).

"Adjustment Date" shall have the meaning set forth in Section 2.4(b).

"Administrative Agent" means Comerica Bank-Texas in its capacity as
administrative agent for the Banks under this Agreement, and its successors
and assigns in such capacity.

"Advance" means the disbursement of an amount or amounts loaned or to
be loaned by any Bank to Borrower hereunder.

"Affiliate" means, as to any Person, any other Person (a) that directly
or indirectly, through one or more intermediaries, Controls or is Controlled
by, or is under common Control with, such first Person, (b) that directly or
indirectly beneficially owns or holds five percent or more of any class of
voting capital stock of such first Person, or (c) five percent or more of the
voting capital stock of which is directly or indirectly beneficially owned or
held by such first Person; provided, however, in no event shall any Agent or
any Bank be deemed an Affiliate of Borrower, Parent or any Subsidiaries.

"Agents" means collectively, Administrative Agent, Collateral Agent and
Syndication Agent, and "Agent" shall mean any one of them.

"Agreement" means this Credit Agreement, as it may be amended, renewed,
extended, or restated from time to time.

"Applicable Lending Office" means for each Bank and each Type of Loan,
the lending office of such Bank (or of an Affiliate of such Bank) designated
for such Type of Loan below its name on the signature pages hereof (or, with
respect to a Bank that becomes a party to this Agreement pursuant to an
assignment made in accordance with Section 9.16, in the Assignment and
Acceptance executed by it) or such other office of such Bank (or an Affiliate
of such Bank) as such Bank may from time to time specify to Administrative
Agent as the office by which its Loans of such Type are to be made and
maintained.

"Applicable Rate" shall have the meaning set forth in Section 2.4(a).

"Article(s)" shall have the meaning set forth in Section 9.10.

"Assignee" shall have the meaning set forth in Section 9.16(b).

"Assigning Bank" shall have the meaning set forth in Section 9.16(b).

"Assignment and Acceptance" means an Assignment and Acceptance in
substantially the form of Exhibit F.

"Banks" means as defined in the introductory paragraph.

"Base Rate" means the higher of (i) the rate of interest per annum then
most recently established by Comerica as its prime or base rate of interest
(which rate may not be the lowest rate of interest charged by Comerica) or
(ii) the Federal Funds Rate plus 0.5%, with each change in the Base Rate to
become effective, without notice to Borrower, as of the opening of business
on the effective date of each change in the Base Rate; provided, however,
that, in the event Comerica is no longer Administrative Agent hereunder for
whatever reason, the aforesaid reference in this definition to Comerica shall
instead be deemed to mean and refer to such Bank as may from time to time be
Administrative Agent hereunder, in such Bank's capacity as a Bank hereunder,
or such other Bank as may from time to time be specified by the Banks in
their discretion, which Base Rate shall be established by such Bank in
accordance with its internal policies and procedures applicable from time to
time.

"Base Rate Loan" means a Loan that bears interest at the Base Rate.

"Base Rate Margin" shall have the meaning set forth in Section
2.4(b)(i).

"Borrower" means FFE Transportation Services, Inc., a Delaware
corporation.

"Borrowing Base" means the sum of:

(a)  an amount equal to (i) eighty-five percent (85%) of the aggregate
Eligible Accounts; plus

(b)  so long as any Vehicles are included in the Borrowing Base, an
amount equal to the lesser of (i) $15,000,000, or (ii) sixty-five percent
(65%) of the Orderly Liquidation Value of Vehicle Collateral in which the
Collateral Agent, for the benefit of the Banks, has a valid, perfected Lien
and which is not subject to any Lien other than Liens in favor of Collateral
Agent and the Banks;

all calculated in accordance with GAAP based upon consolidated financial
information of Parent and the Subsidiaries. The Borrowing Base shall be
determined by Administrative Agent from time to time in its good faith
judgment.

"Borrowing Base Availability" means (a) the Borrowing Base, minus
(b) the Outstanding Revolving Credit.

"Borrowing Base Report" means a report prepared and executed by
Borrower, substantially in the form of Exhibit A attached hereto
appropriately completed, in form and substance satisfactory to Administrative
Agent evidencing the calculation of the Borrowing Base.

"Business Day" means (a) any day on which commercial banks are not
authorized or required to close in Dallas, Texas, or Chicago, Illinois, and
(b) with respect to all Advances, payments, Conversions, Continuations,
Interest Periods and notices in connection with LIBOR Loans, any day which is
a Business Day described in clause (a) above and which is also a day on which
dealings in Dollar deposits are carried out in the London interbank market.

"Calculation Period" shall have the meaning set forth in Section
2.4(b)(i).

"Capital Expenditure" means any and all expenditures by a Person for
(i) an asset which will be used in a year or years subsequent to the year in
which the expenditure is made and which asset is properly classified in
relevant financial statements of such Person as equipment, real property or
improvements, fixed assets or a similar type of capitalized asset in
accordance with GAAP, (ii) an asset relating to or acquired in connection
with an acquired business, and (iii) any and all acquisition costs related to
(i) and (ii) above.

"CERCLA" means the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended by the Superfund Amendments and
Reauthorization Act of 1986, as the same may be amended from time to time.
Change in Control" means (a) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934 and the rules of the
Securities and Exchange Commission thereunder as in effect on the date
hereof), of shares representing more than 30% of either the aggregate
ordinary voting power or the aggregate equity value represented by the issued
and outstanding capital stock of the Parent; (b) occupation of a majority of
the seats (other than vacant seats) on the board of directors of the Parent
by Persons who were neither (i) nominated by the board of directors of the
Parent nor (ii) appointed by directors so nominated; or (c) the acquisition
of direct or indirect Control of the Parent by any Person or group.

"Closing Date" means May 30, 2002.

"Code" means the Uniform Commercial Code of Texas.

"Collateral" means any and all property or assets in which a security
interest, pledge or other such interest has been or from time to time may be
granted to Administrative Agent, Collateral Agent and the Banks to secure the
Obligations.

"Collateral Agent" means LaSalle Bank National Association in its
capacity as collateral agent for the Banks under this Agreement, and its
successors and assigns in such capacity.

"Commitment" means, with respect to each Bank, the obligation of such
Bank, in accordance with this Agreement, to make or continue Loans and to
make or participate in Letter of Credit Liabilities in an aggregate principal
amount at any one time outstanding up to but not exceeding the amount set
forth opposite the name of such Bank on Schedule 1.1 or, if such Bank is
party to an Assignment and Acceptance, as set forth in the most recent
Assignment and Acceptance of such Bank, and as the same may be increased or
decreased pursuant to this Agreement or as otherwise set forth in this
Agreement.

"Commitment Fee Rate" shall have the meaning set forth in Section
2.4(b)(iii).

"Companies" means Parent, Borrower and the Other Subsidiaries, and a

"Company" means any of Parent, Borrower or an Other Subsidiary.

"Compliance Certificate" means a certificate in the form of Exhibit D
hereto with the blanks completed accurately and signed by the Chief Financial
Officer or Treasurer of Parent and the Chief Financial Officer or Vice
President of Finance of Borrower.

"Compliance Income" shall have the meaning set forth in Section 5.1(m).

"Consolidated Tangible Net Worth" means, at any time, all amounts which
in conformity with GAAP would be included as stockholders' equity or owners'
equity on a consolidated balance sheet of the Companies; provided, however,
there shall be excluded therefrom (a) any amount at which shares of capital
stock of any Person appear as an asset on the balance sheet of such Person,
(b) goodwill, including any amounts, however designated, that represent the
excess of the purchase price paid for assets or stock over the value assigned
thereto, (c) patents, trademarks, trade names and copyrights, (d) deferred
expenses, (e) loans and advances to any stockholder, director, officer,
partner, or employee of any Company or any Affiliate of any Company, (f) the
W&B Note, (g) all equity interests in W&B Newco, L.P., (h) Operating Rights,
and (i) all other assets which are properly classified as intangible assets.

"Consolidated Total Liabilities" means, at any time, all liabilities
that, in accordance with GAAP, should be classified as such on a consolidated
balance sheet of the Companies.

"Continue", "Continuation" and "Continued" shall refer to the
continuation pursuant to Section 2.6 of any LIBOR Loan as a LIBOR Loan from
one Interest Period to the next Interest Period.

"Contract Rate" shall have the meaning set forth in Section 9.19(a).

"Control" means the possession, directly or indirectly, of the power to
direct or cause direction of the management and policies of a Person, whether
through the ownership of voting securities, by contract, or otherwise.

"Convert", "Conversion" and "Converted" shall refer to a conversion
pursuant to Section 2.1(b), Section 2.6, Section 2.22, or Section 2.24 of one
Type of Loan into another Type of Loan.

"Current Financials" shall have the meaning set forth in Section 4.2.

"Debtor Relief Laws" means any applicable liquidation, conservatorship,
bankruptcy, moratorium, rearrangement, insolvency, reorganization, or similar
debtor relief laws affecting the rights of creditors generally from time to
time in effect.

"Default" shall have the meaning set forth in Article VI.

"Default Rate" shall have the meaning set forth in Section 2.4(a).

"Demo Vehicles" shall have the meaning specified in the definition of

"Permitted Liens".

"Deposit" shall have the meaning set forth in Section 7.7.

"Dollars" or "$" have the meaning set forth in Section 9.8.

"EBITDAR" shall have the meaning set forth in Section 5.1(f).

"Eligible Accounts" means, as of any date, an amount equal to the
aggregate net invoice or ledger amount owing on all trade accounts receivable
of the Companies, on a consolidated basis, for goods sold or leased (provided
such goods have been shipped) or services rendered, after deducting (without
duplication): (i) each such account that is unpaid 90 days after the original
invoice date thereof, (ii) all such accounts in which a Person (other than
the Banks specifically as security for the Obligations) has a Lien, (iii) the
amount of all discounts, allowances, rebates, credits and adjustments to such
accounts, (iv) all contra accounts, setoffs, defenses or counterclaims
asserted by or available to the Persons obligated on such accounts, provided,
however, that with respect to freight claims which constitute a part of
accrued claims liability, only the current or short-term portion thereof
shall be so deducted, (v) all accounts with respect to which goods are placed
on consignment, guaranteed sale or other terms by reason of which the payment
by the account debtor may be conditional, (vi) the amount billed for or
representing retainage, if any, until all prerequisites to the immediate
payment of retainage have been satisfied, (vii) the amount of freight in
transit (i.e., billed but not delivered), (viii) all such accounts owed by
account debtors which are known to any officer of any Company, Administrative
Agent or any Bank to be insolvent, (ix) all such accounts owing by Affiliates
of a Company, (x) all accounts in which the account debtor is not a resident
of the United States unless such accounts are supported by a letter of credit
issued by a bank acceptable to Administrative Agent or by foreign credit
insurance issued by a Person acceptable to Administrative Agent (xi) all
accounts in which the account debtor is the United States or any department,
agency or instrumentality of the United States, except to the extent
acknowledgment of assignment to the Banks, specifically as security for the
Obligations, of such account in compliance with the Federal Assignment of
Claims Act and other applicable Law has been received by Administrative
Agent, (xii) all accounts not evidenced by evidence of billing acceptable to
the Required Banks, (xiii) all accounts evidenced by any note, trade
acceptance, draft or other instrument or chattel paper, (xiv) any account
which is not a valid, legally enforceable obligation of the account debtor
thereunder, (xv) all accounts in which Administrative Agent does not have a
first priority, perfected Lien, and (xvi) all accounts otherwise unacceptable
to the Required Banks in their respective sole reasonable discretion.

"ERISA" shall have the meaning set forth in Section 4.6.

"Exhibits" shall have the meaning set forth in Section 9.10.

"Federal Funds Rate" means, for any day, the weighted average of the
rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers ("Overnight Transactions")
transacted on the immediately preceding Business Day, as published by the
Federal Reserve Bank of New York, or, if such interest rate is not so
published for any Business Day, the average of the per annum interest rate
quotations for Overnight Transactions received by Comerica (or other
applicable Bank referred to in the definition of "Base Rate" for such
Business Day from three Federal funds brokers of recognized standing selected
by Comerica (or such other applicable Bank).

"Financial Statements" includes, but is not necessarily limited to,
balance sheets, profit and loss statements, reconciliations of capital and
surplus, statements of cash flows prepared on a consolidated basis, and the
footnotes thereto.

"Financing Lease" means any lease of property which shall, in
accordance with GAAP, be capitalized on a balance sheet of a Company.

"Fixed Charge Coverage Ratio" shall have the meaning set forth in
Section 5.1(f).

"Fixed Charges" shall have the meaning set forth in Section 5.1(f).

"Funded Debt" shall have the meaning set forth in Section 5.1(k).

"GAAP" means generally accepted accounting principles, applied on a
consistent basis, set forth in authoritative pronouncements issued by the
American Institute of Certified Public Accounts, the Financial Accounting
Standards Board, the Securities and Exchange Commission, the International
Accounting Standards Committee, and any other comparable governing body,
which are applicable in the circumstances as of the date in question, and the
requisite that such principles are applied on a consistent basis means that
the accounting principles observed in a current period are comparable in all
material respects to those applied in a preceding period.

"Governmental Requirement" means any Law, statute, code, ordinance,
order, rule, regulation, judgment, decree, injunction, franchise, permit,
certificate, license, authorization or other directive or requirement of any
federal, state, county, municipal, parish, or other Tribunal or any
department, commission, board, court, agency or any other instrumentality of
any of them.

"Group Member" means any Person which is a member with any Company in
an "affiliated service group" as defined in Section 414(m) of the IRC, a
"controlled group of corporations" as defined in Section 1563 of the IRC, or
any "trades or businesses . . . which are under common control" as defined by
Section 414(c) of the IRC.

"Guaranty Agreement" means a guaranty agreement, in form and substance
satisfactory to the Banks, pursuant to which a Company (other than Borrower)
guarantees prompt payment and performance of the Obligations, and "Guaranty
Agreements" means all of such agreements.

"Guarantee" of or by any Person (the "guarantor") means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic
effect of guaranteeing any Indebtedness or other obligation of any other
Person (the "primary obligor") in any manner, whether directly or indirectly,
and including any obligation of the guarantor, direct or indirect, (a) to
purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness or other obligation or to purchase (or to advance or supply
funds for the purchase of) any security for the payment thereof, (b) to
purchase or lease property, securities or services for the purpose of
assuring the owner of such Indebtedness or other obligation of the payment
thereof, (c) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to
enable the primary obligor to pay such Indebtedness or other obligation or
(d) as an account party in respect of any letter of credit or letter of
guaranty issued to support such Indebtedness or obligation; provided, that
the term Guarantee shall not include endorsements for collection or deposit
in the ordinary course of business.

"Hazardous Materials" means "hazardous substances," "hazardous waste"
or "hazardous constituents" in CERCLA, RCRA or any other federal, state or
local environmental statute or regulation.

"Hedge Agreement" means, with respect to Borrower or any other Company,
any and all transactions, agreements, documents, or arrangements between
Borrower or any other Company and one or more Banks, now existing or
hereafter entered into, which provide for an interest rate, credit,
commodity, or equity swap, cap, floor, collar, forward foreign exchange
transaction, currency swap, cross currency rate swap, currency option, or any
combination of, or option with respect to, these or other similar
transactions, for the purpose of hedging exposure to fluctuations in interest
or exchange rates, loan, credit exchange, security, or currency valuations,
or commodity prices or other similar risks.

"Highest Lawful Rate" means, with respect to any Bank, the maximum non-
usurious interest rate, if any, that at any time or from time to time may be
contracted for, taken, reserved, charged or received with respect to the
particular Obligations as to which such rate is to be determined, payable to
such Bank pursuant to this Agreement or any other Loan Paper, under Laws
applicable to such Bank which are presently in effect or, to the extent
allowed by law, under such applicable Laws which may hereafter be in effect
and which allow a higher maximum non-usurious interest rate than applicable
Laws now allow.  The Highest Lawful Rate shall be calculated in a manner that
takes into account any and all fees, payments and other charges in respect of
the Loan Papers that constitute interest under applicable Law.  Each change
in any interest rate provided for herein based upon the Highest Lawful Rate
resulting from a change in the Highest Lawful Rate shall take effect without
notice to Borrower or any other Person at the time of such change in the
Highest Lawful Rate.  For purposes of determining the Highest Lawful Rate
under Texas law, the applicable rate ceiling shall be the weekly rate ceiling
described in, and computed in accordance with, Sections 303.003 and 303.009
of the Texas Finance Code, as amended and in effect from time to time, or any
successor or replacement statute; provided, however, that, to the extent
permitted by applicable Law, Administrative Agent shall have the right to
change the applicable rate ceiling from time to time in accordance with
applicable Law.

"Indebtedness" of any Person means, without duplication, (a) all
obligations of such Person for borrowed money or with respect to deposits or
advances of any kind, (b) all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments, (c) all obligations of such Person
upon which interest charges are customarily paid, (d) all obligations of such
Person under conditional sale or other title retention agreements relating to
property acquired by such Person, (e) all obligations of such Person in
respect of the deferred purchase price of property or services (excluding
trade accounts payable incurred in the ordinary course of business which are
not more than 90 days past due), (f) all obligations secured by (or for which
the holder of such obligations has an existing right, contingent or
otherwise, to be secured by) any Lien on property owned or acquired by such
Person, whether or not the obligations secured thereby have been assumed, (g)
all Guarantees by such Person of Indebtedness of others, (h) all obligations
of such Person under Financing Leases, (i) all obligations, contingent or
otherwise, of such Person in respect of letters of credit, letters of
guaranty, bankers' acceptances, surety or other bonds and similar
instruments, (j) all liabilities of such Person in respect of unfunded vested
benefits under any Plan, and (k) payment obligations with respect to Hedge
Agreements, provided that for purposes of this definition, the amount of the
obligation of any Person under any Hedge Agreement shall be the amount
determined, in respect thereof as of the end of the most recently ended
fiscal quarter of such Person, based on the assumption that such Hedge
Agreement has terminated at the end of such fiscal quarter, and in making
such determination, if such Hedge Agreement provides for the netting of
amounts payable by and to each party thereto or if any Hedge Agreement
provides for the simultaneous payment of amounts by and to each party, then
in each such case, the amount of such obligation shall be the net amount so
determined; provided, however, that notwithstanding the foregoing,
Indebtedness shall not include deposits, escrows or bonds of such Person
pursuant to an independent contractor agreement not to exceed $1,000,000 in
the aggregate at any time.  The Indebtedness of any Person shall include the
Indebtedness of any other entity (including any partnership in which such
Person is a general partner) to the extent such Person is liable therefor as
a result of such Person's ownership interest in or other relationship with
such entity, except to the extent the terms of such Indebtedness provide that
such Person is not liable therefor.

"Interest Period" means, with respect to any LIBOR Loan, a period
commencing: (i) on any date upon which, pursuant to a Notice of Activity or
otherwise pursuant to the provisions of this Agreement, the principal amount
of such LIBOR Loan begins to accrue interest at the LIBOR Rate, or (ii) on
the last day of the immediately preceding Interest Period, in the case of a
Continuation to a successive Interest Period, and ending one (1), two (2),
three (3) or six (6) months thereafter as Borrower shall elect in accordance
with the provisions of Section 2.9; provided, that: (A) any Interest Period
which would otherwise end on a day which is not a LIBOR Business Day shall be
extended to the next succeeding LIBOR Business Day, unless such LIBOR
Business Day falls in another calendar month, in which case such Interest
Period shall end on the next preceding LIBOR Business Day; (B) any Interest
Period which begins on the last LIBOR Business Day of a calendar month (or a
day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period) shall, subject to clause (A) above, end
on the last LIBOR Business Day of the appropriate subsequent calendar month,
and (C) any Interest Period that would otherwise end after the Termination
Date shall end on the Termination Date.

"IRC" shall mean the Internal Revenue Code of 1986, as amended.

"Issuing Bank" means Comerica, in its capacity as the issuer of Letters
of Credit hereunder, and its successors in such capacity as provided in
Section 2.14(g).

"Laws" means any and all applicable laws, statutes, ordinances, rules,
regulations, orders, writs, injunctions, and/or decrees of the United States,
any state or commonwealth, any territory or possession, any foreign country,
or any Tribunal.

"Letter of Credit" shall have the meaning assigned to such term in
Section 2.14.

"Letter of Credit Liabilities" means, at any time, the aggregate
undrawn face amounts of all outstanding Letters of Credit and all
Reimbursement Obligations.

"Leverage Ratio" shall have the meaning set forth in Subsection 5.1(k).

"LIBOR Business Day" shall mean a day on which dealings in Dollars are
carried out in the London Inter-Bank Eurocurrency market.

"LIBOR Loan" means a Loan that bears interest at the LIBOR Rate.

"LIBOR Rate" as applied to any LIBOR Loan made by any Bank hereunder,
shall mean the quotient of (i) the rate per annum (rounded upwards, if
necessary, to the nearest 1/16th of 1%) determined by Administrative Agent, by
reference to Telerate page 3750 (or any successor page) or otherwise, to be
the rate offered to Comerica at approximately 11:00 a.m. London time (or as
soon thereafter as practicable) two Business Days prior to the first day of
such Interest Period by leading banks in the London interbank market of U.S.
Dollar deposits in immediately available funds having a term comparable to
such Interest Period and in an amount comparable to the principal amount of
the LIBOR Loan applicable to Comerica to which such Interest Period relates
divided by (ii) the remainder of (A) 1.00 minus (B) the LIBOR Reserve
Percentage applicable to such LIBOR Loan. The determination by Administrative
Agent of the LIBOR Rate shall, in the absence of manifest error, be
conclusive.

"LIBOR Rate Margin" shall have the meaning as set forth in Section
2.4(b)(ii).

"LIBOR Reserve Percentage" shall mean, with respect to each Interest
Period, a percentage (expressed as a decimal) equal to the daily average
during such Interest Period of the percentages in effect on each day of such
Interest Period, as prescribed by the Board of Governors of the Federal
Reserve System (or any successor), for determining reserve requirements
applicable to "eurocurrency liabilities" pursuant to Regulation D or any
other then applicable regulation of the Board of Governors (or any successor)
which prescribes reserve requirements applicable to "eurocurrency
liabilities," as presently defined in Regulation D, or any eurocurrency
funding.  Without limiting the effect of the foregoing, the LIBOR Reserve
Percentage shall reflect any other reserves required to be maintained by such
member banks by reason of any change in laws against any category of
liabilities which includes deposits by reference to which the LIBOR Rate is
to be determined or any category of extensions of credit or other assets
which include LIBOR Loans.

"Lien" means any security interest, mortgage, pledge, lien, claim,
charge, encumbrance, title retention agreement, lessor's interest under a
Financing Lease or analogous instrument, in, of or on any of the Companies'
property (or any other Person's property if the context so requires).

"Litigation" means any proceeding, claim, lawsuit and/or investigation
conducted or threatened by or before any Tribunal, including, but not limited
to, proceedings, claims, lawsuits and/or investigations under or pursuant to
any environmental, occupational safety and health, antitrust, unfair
competition, securities, taxation or other Law, or under or pursuant to any
contract, agreement or other instrument.

"Loans" shall have the meaning assigned to such term in Section 2.1.

"Loan Papers" means this Agreement, the Notes, the Guaranty Agreements
and any and all certificates, mortgages, deeds of trust, security agreements
and other documents and agreements executed and/or delivered in connection
with the making of Loans or the issuing of Letters of Credit or otherwise
pursuant to the terms of this Agreement and any future amendments and
supplements thereto and restatements thereof.

"Margin Regulations" means Regulations T, U and X of the Board of
Governors of the Federal Reserve System, as in effect from time to time.

"Margin Stock" means "margin stock" as defined in Regulation U of the
Board of Governors of the Federal Reserve System, as in effect from time to
time.

"Material Adverse Effect" means any effect which might reasonably be
expected to be material and adverse to the financial condition or business
operations of the Companies as a whole on a consolidated basis.

"Net Income" means, for any period and any Person, the sum of the
following calculated without duplication: (a) such Person's consolidated net
income (or loss) determined in conformity with GAAP; minus (b) nonrecurring,
extraordinary gains, including, without limitation, any nonrecurring death
benefits under life insurance policies.

"New Entity" shall have the meaning set forth in Section 9.14.

"Notes" means the Revolving Credit Notes.

"Notice of Activity" means the written notice given by Borrower to
Administrative Agent of a Advance, Conversion, Continuation or issuance of a
Letter of Credit, which shall be substantially in the form of Exhibit B
attached.

"Obligations" means all present and future obligations and liabilities,
and all renewals and extensions thereof, or any part thereof, of Borrower or
any other Company to any one or more of the Agents and/or any one or more of
the Banks and created or evidenced by or existing or arising out of or
pursuant to this Agreement, the Revolving Credit Notes or any one or more of
the other Loan Papers (including, without limitation, the Principal
Obligation, the Reimbursement Obligation arising pursuant to any Letters of
Credit, and all other indebtedness, obligations, fees and liabilities arising
pursuant to this Agreement, or otherwise) and pursuant to or under any Hedge
Agreement that Borrower or any other Company may enter into with the express
written consent of Administrative Agent and the Required Banks, and all
interest accruing thereon and costs, expenses and attorneys' fees incurred in
the enforcement or collection thereof, regardless of whether such obligations
and liabilities are direct, indirect, fixed, contingent, liquidated,
unliquidated, joint, several, or joint and several, including, but not
limited to, the obligations and liabilities arising pursuant to any of the
Loan Papers, and all renewals and extensions thereof, or any part thereof,
and all present and future amendments thereto.

"Operating Rights" means the operating rights, franchises,
certificates, authorizations, permits and licenses of Borrower and the other
Companies.

"Orderly Liquidation Value" with respect to each Vehicle, means (a)
with respect to any Vehicle acquired after the Closing Date, the Purchase
Price of such Vehicle, which amount shall be reduced each month by an amount
equal to 1% of the Purchase Price of such Vehicle as previously so reduced,
to reflect depreciation, until such time as a Vehicle Appraisal for such
Vehicle shall have been delivered to Collateral Agent or Administrative
Agent, and thereafter the orderly liquidation value attributed to such
Vehicle in the most recent Vehicle Appraisal for such Vehicle; and (b) with
respect to any other Vehicle, the orderly liquidation value attributed to
such Vehicle in the most recent Vehicle Appraisal.  Notwithstanding the
foregoing, the term "Orderly Liquidation Value" shall not include the value
of any Vehicle which is no longer owned by a Company or which has been (i)
destroyed, confiscated by a governmental authority, stolen, or lost, or (ii)
restricted from use, attached by legal process, or immobilized due to lack of
repair for a period of forty-five (45) consecutive calendar days.

"Other Subsidiary" means any Person of which an aggregate of 50% or
more of the issued and outstanding voting stock, or 50% or more of the equity
interests, at the time at which any determination is being made, is owned of
record or beneficially, directly or indirectly, by any Company.

"Outstanding Revolving Credit" means, at any particular time, the sum
of (a) the aggregate outstanding principal amount of the Loans, plus (b) all
Letter of Credit Liabilities.

"Parent" means Frozen Food Express Industries, Inc., a Texas
corporation.

"Permitted Investments" means investments in (i) indebtedness,
evidenced by notes maturing not more than one hundred eighty (180) days after
the date of issue, issued or guaranteed by the federal government of the
United States of America, or any agency thereof, (ii) certificates of
deposit, maturing not more than one hundred eighty (180) days after the date
of issue, issued by commercial banking institutions, each of which is a
member of the Federal Reserve System and which has combined capital and
surplus and undivided profits of not less than $100,000,000.00, or any other
financial institution if the amount on deposit is fully insured by The
Federal Deposit Insurance Corporation, (iii) commercial paper, maturing not
more than one hundred eighty (180) days after the date of issue, issued by a
corporation (other than an Affiliate of the Companies) with a rating of "P-1"
(or its then equivalent) according to Moody's Investors Service, Inc., "A-l"
(or its then equivalent) according to Standard & Poor's Corporation or "F-l"
(or its then equivalent) according to Fitch's Investors Service, Inc., or
issued by any Bank with a rating of "P-3" (or its then equivalent) according
to Moody's Investors Service Inc., or "A-3" (or its then equivalent)
according to Standard & Poor's Corporation, (iv) money market funds that
invest only in securities which mature within one (1) year after the date of
purchase and which have ratings meeting the standard of (iii) above, or (v)
securities issued or guaranteed by an agency of the United States of America.

"Permitted Liens" means with respect to any asset or property (or any
interest therein),

     a.   Liens (if any) securing the Notes in favor of
Administrative Agent, Collateral Agent and/or the Banks;

     b.   The following, if the validity and amount thereof are being
contested in good faith and by appropriate legal proceedings and so
long as (i) levy and execution thereon have been stayed and continue to
be stayed, (ii) they do not in the aggregate materially detract from or
threaten the value of the asset or property, or materially impair the
use thereof in the operation of any Company's business, and (iii) a
reserve therefor, if appropriate, has been established in accordance
with GAAP: claims and Liens for taxes due and payable; claims and Liens
upon and defects of title to real and personal property, including any
attachment of personal or real property or other legal process prior to
adjudication of a dispute on the merits; claims and Liens of mechanics,
materialmen, warehousemen, landlords or carriers, or similar Liens; and
adverse judgments on appeal;

     c.   Liens for taxes not past due;

     d.   Mechanics', materialmen's, warehousemen's, landlords' or
carriers' Liens for services or materials for which payment is not past
due;

     e.   Liens in favor of the lessor on the assets being leased
under any operating lease or Financing Lease;

     f.   Encumbrances consisting of minor easements, zoning
restrictions, or other restrictions on the use of real property that do
not (individually or in the aggregate) materially affect the value of
the assets encumbered thereby or materially impair the ability of
Borrower or the other Companies to use such assets in their respective
businesses, and none of which is violated in any material respect by
existing or proposed structures or land use;

     g.   Liens resulting from good faith deposits to secure payments
of workmen's compensation or other social security programs or to
secure the performance of tenders, statutory obligations, surety and
appeal bonds, bids, and contracts (other than for payment of borrowed
money); and

     h.   Liens at any time existing on up to fifty (50) tractors and
fifty (50) trailers that are purchased for a nominal amount from
vehicle vendors and that are required to be sold by the owner back to
such vendors for a nominal amount (collectively, "Demo Vehicles").

"Person" means any individual, firm, corporation, association,
partnership, joint venture, trust, other entity or Tribunal.

"Plan" means all (present, prior (including terminated and transferred)
and future) plans, programs agreements, arrangements and methods of
contribution or compensation providing any remuneration or benefits other
than current cash compensation to any current or former employee of any
Company or any other Group Member or to any other Person who provides
services to any Company or any other Group Member whether or not subject to
ERISA; and includes, but is not limited to, pension, retirement, profit
sharing, stock bonus, nonqualified deferred compensation, disability,
medical, dental, workers compensation, health insurance, life insurance,
incentive plans, vacation benefits and fringe benefits.

"Potential Default" means the occurrence of an event or condition that
with notice or lapse of time would become a Default.

"Principal Obligation" means, as of the date of any determination
thereof, the aggregate unpaid principal balance of all Loans and
Reimbursement Obligations made by any Bank up to the time in question.

"Pro Rata Share" means, with respect to each Bank and from time to
time, an amount equal to the quotient obtained by dividing such Bank's
Commitment by the aggregate amount of the Commitments or, if all the
Commitments are terminated, the quotient obtained by dividing such Bank's
outstanding Loans by the aggregate outstanding Loans of all Banks.

"Purchase Price" means, in the case of a Vehicle, the bona fide price
which the purchaser actually pays to the seller for such Vehicle, including
(i) trade-in allowance, (ii) seller's delivery and handling charges;
(iii) excise tax on the Vehicle; (iv) any sale and use taxes; (v) freight
charges; and (vi) other expenses required to effect delivery of the Vehicle
to the purchaser.

"Quarterly Payment Date" means the last Business Day of each March,
June, September and December.

"RCRA" means the Resource Conservation and Recovery Act of 1976, as
amended by the Used Oil Recycling Act of 1980, the Solid Waste Disposal Act
Amendments of 1980, and the Hazardous and Solid Waste Amendments of 1984, as
the same may be amended from time to time.

"Regulatory Change" means, with respect to any Bank, any change after
the Closing Date in any U.S. federal or state, or any foreign, Laws or
regulations or the adoption or making after such date of any interpretations,
directives or requests applying to a class of lenders including such Bank of
or under any U.S. federal or state, or any foreign, Laws or regulations
(whether or not having the force of law) by any Tribunal charged with the
interpretation or administration thereof.

"Reimbursement Obligation" shall have the meaning assigned to such term
in Section 2.14(d).

"Reportable Event" has the meaning assigned to that term in Title IV of
ERISA.

"Required Banks" means, as of the date of any determination thereof,
any two or more of the Banks, that hold, in the aggregate, sixty-six and two-
thirds of one percent (66-2/3%) or more of the sum of the Principal
Obligation then outstanding plus the aggregate face amount of the Letters of
Credit then outstanding, or, if no Principal Obligation or Letter of Credit
is then outstanding, any two or more of the Banks, that hold, in the
aggregate, sixty-six and two-thirds of one percent (66-2/3%) or more of the
Commitments. For purposes of this definition, the effects of rounding to the
nearest cent shall not be taken into account.

"Revolving Credit Notes" shall have the meaning set forth in Section
2.2, and "Revolving Credit Note" shall mean any of such promissory notes.

"Schedules" shall have the same meaning set forth in Section 9.10.

"Section(s)" shall have the meaning set forth in Section 9.10.

"Security Agreements" means (a) security agreements, pledge agreements
and other agreements, documents or instruments executed by the Borrower,
Parent or any Subsidiary dated the Closing Date (or such other date as any
such Person may execute such Security Agreement), (b) any such agreement,
document or instrument at any time executed pursuant to Section 3.1(a)
hereof, evidencing or creating a Lien as security for the Obligations and in
form and substance reasonably satisfactory to Administrative Agent and
Collateral Agent, and (c) any and all amendments, modifications, supplements,
renewals, extensions, restatements or replacements thereof.

"Solvent" means, as to any Person, that (a) the aggregate fair market
value of its assets exceeds its liabilities, (b) it has sufficient cash flow
to enable it to pay its Indebtedness as such Indebtedness matures, and (c) it
does not have unreasonably small capital to conduct its business.

"Subsidiaries" means FFE, Borrower, Conwell, AirPro, LML, Express,
Cartage, Middleton, Logistics and CPI, and shall also mean and include any
New Entity which has executed and delivered a Guaranty Agreement and letter
as provided in Section 9.14 and has not been released or otherwise discharged
from its obligations thereunder.

"Syndication Agent" means LaSalle Bank National Association in its
capacity as syndication agent for the Banks under this Agreement, and its
successors and assigns in such capacity.

"Taxes" means any and all present and future taxes, levies, imposts,
deductions, withholdings, assessments, fees or other charges from time to
time or at any time imposed by any Laws or by any Tribunal (excluding
taxation of the income of the Banks).

"Termination Date" shall mean June 1, 2005, or such earlier date upon
which the obligation of the Banks to make Loans is terminated pursuant to the
terms of this Agreement.

"Tribunal" means any state, commonwealth, federal, foreign,
territorial, or other court or governmental department, commission, board,
bureau, agency or instrumentality.

"Type" means any type of Loan (i.e., Base Rate Loan or LIBOR Loan).

"Vehicle Appraisal" means an appraisal of any or all of the Vehicles,
performed on behalf of the Administrative Agent or the Collateral Agent and
the Banks, by an appraisal firm reasonably satisfactory to the Administrative
Agent and the Collateral Agent, dated a recent date satisfactory to the
Administrative Agent and the Collateral Agent and in all respects
satisfactory to the Administrative Agent and the Collateral Agent in their
respective sole and absolute discretion.

"Vehicles" means any and all of the following, whether now owned or
hereafter acquired by Parent, Borrower, or any Subsidiary:  (a) all tractors
and  trailers registered in accordance with any Law for public roadway use in
the operation of Parent's, Borrower's or any Subsidiary's motor carrier
business, and (b) all equipment and accessories permanently attached to any
such Vehicles, including without limitation all refrigeration units, tires
and tubes; provided, that (i) "Vehicles" shall include such equipment and
accessories only so long as they are so permanently attached and shall not
include any spare parts inventory; (ii) Vehicles shall not include any such
property described in the foregoing clauses (a) and (b) that (1) is leased to
any Company by any Person other than another Company, (2) is a vehicle which
is intended for use, and is in fact used, solely on location at Parent's,
Borrower's or any Subsidiary's place of business (commonly known as "yard
hosses"), (3) constitutes "inventory" as such term is defined in Chapter 9 of
the Code, or (4) is a Demo Vehicle.

"Vehicle Collateral" means, collectively, all of the Vehicles which are
included in the Collateral.

"W&B Note" means that certain Subordinated Term Note dated as of
December 26, 2001, made by W&B Newco, L.P., payable to the order of AirPro in
the original principal amount of $4,134,785.00, and all renewals, extensions,
amendments, modifications, replacements, substitutions and rearrangements
thereof.
Section 1.2 UCC Changes.  All terms used herein which are defined in
the UCC shall, unless otherwise provided, have the meanings ascribed to them
in the UCC both as in effect on the date of this Agreement and as hereafter
amended.  The parties intend that the terms used herein which are defined in
the UCC have, at all times, the broadest and most inclusive meanings
possible.  Accordingly, if the UCC shall in the future be amended or held by
a court to define any term used herein more broadly or inclusively than the
UCC in effect on the date of this Agreement, then such term as used herein
shall be given such broadened meaning.  If the UCC shall in the future be
amended or held by a court to define any term used herein more narrowly, or
less inclusively, than the UCC in effect on the date of this Agreement, such
amendment or holding shall be disregarded in defining terms used in this
Agreement.

                              ARTICLE II
               AMOUNTS AND TERMS OF CREDIT COMMITMENTS

          Section 2.1    Commitments.

     (a) Loans.  Subject to the terms and conditions of this Agreement
(including, without limitation, Section 2.13), each Bank severally agrees to
make one or more revolving credit loans to Borrower from time to time from
and including the Closing Date to but excluding the Termination Date in an
aggregate principal amount outstanding not to exceed the positive remainder
of (i) the amount of such Bank's Commitment as then in effect, minus
(ii) such Bank's Pro Rata Share of the Letter of Credit Liabilities then
outstanding (such revolving credit loans referred to in this Section 2.1(a)
now or hereafter made by the Banks to Borrower from and including and after
the Closing Date are hereinafter collectively called the "Loans"); provided,
however, that (a) the Outstanding Revolving Credit shall not at any time
exceed the lesser of (i) the Borrowing Base then most recently determined, or
(ii) the aggregate amount of the Commitments, and (b) the amount of Borrowing
Base Availability shall not at any time be less than $5,000,000.  If any Loan
would cause Borrowing Base Availability to be less than $5,000,000, no Bank
shall be obligated to make such Loan unless and until the Companies shall
have caused the perfection of the Lien of Collateral Agent, for the benefit
of the Banks, in Vehicles having an aggregate Orderly Liquidation Value such
that Borrowing Base Availability is at all times equal to or greater than
$5,000,000, pursuant to documentation satisfactory to Collateral Agent and
Required Banks as provided in Section 5.1(r).  Subject to the foregoing
limitations and the other terms and conditions of this Agreement, Borrower
may borrow, repay and re-borrow the Loans hereunder prior to the Termination
Date.   The Borrowing Base shall be determined in good faith by
Administrative Agent in connection with the delivery of the Borrowing Base
Report to be delivered in accordance with Section 5.1(l), subject to
Administrative Agent's right to re-determine the Borrowing Base in accordance
with the immediately succeeding sentence.  In addition, the Borrowing Base
may be re-determined at any time and from time to time by Administrative
Agent in good faith upon the occurrence and during the continuation of a
Potential Default.

     (b) Continuation and Conversion of Loans.  Subject to the terms of
this Agreement, Borrower may borrow the Loans as Base Rate Loans or LIBOR
Loans and Borrower may Continue LIBOR Loans or Convert Loans of one Type into
Loans of the other Type.

     (c) Lending Offices.  Loans of each Type made by each Bank shall be
made and maintained at such Bank's Applicable Lending Office for Loans of
such Type.

     Section 2.2 The Notes.  The Loans made by each Bank shall be evidenced
by a single promissory note (each a "Revolving Credit Note") of Borrower in
substantially the form of Exhibit C hereto, dated the Closing Date, payable
to the order of such Bank in a principal amount equal to its Commitment as
originally in effect, and otherwise duly completed.  Each Bank is hereby
authorized by Borrower to endorse on the schedule (or a continuation thereof)
attached to each Note of such Bank, to the extent applicable, the date,
amount and Type of and the Interest Period (if applicable) for each Loan made
by such Bank to Borrower and the amount of each payment or prepayment of
principal of such Loan received by such Bank, provided that any failure by
such Bank to make any such endorsement shall not affect the obligations of
Borrower, Parent or any other Subsidiary under such Note or this Agreement in
respect of such Loan.

     Section 2.3 Repayment of Loans.  Borrower shall pay the outstanding
principal amount on all Loans on the Termination Date.  If any payment of
principal becomes due and payable on a day other than a Business Day, the
maturity thereof shall be extended to the next succeeding Business Day and
interest shall be payable at the then applicable rate during such extension.

     Section 2.4 Interest and Fees.

     (a) Interest Rate.  Borrower shall pay to the Administrative Agent
for the account of each Bank interest on the unpaid principal amount of each
Loan made by such Bank for the period commencing on the date of such Loan to
but excluding the date such Loan is due, at a fluctuating rate per annum
equal to the Applicable Rate.  The term "Applicable Rate" means (i) with
respect to Base Rate Loans outstanding from day to day, the lesser of (A) the
Highest Lawful Rate or (B) the Base Rate plus the Base Rate Margin and (ii)
with respect to LIBOR Loans outstanding from day to day, the lesser of (A)
the Highest Lawful Rate or (B) the LIBOR Rate plus the LIBOR Rate Margin.
Notwithstanding the foregoing, subject to Section 9.19, (1) all principal
outstanding after the occurrence of a Default which has not been cured to the
satisfaction of the Administrative Agent and the Required Banks or waived in
writing by the Administrative Agent and the Required Banks shall bear
interest at the Default Rate, which shall be due and payable on demand, and
(2) past due principal, interest, fees and other amounts shall bear interest
at the Default Rate, which shall be payable on demand.  The term "Default
Rate" means a rate per annum equal to (i) in the case of principal of any
Loan, the lesser of (A) the Highest Lawful Rate, or (B) 2% plus the rate
otherwise applicable to such Loan as provided above, or (ii) in the case of
any other amount, including interest and fees, 2% plus the rate applicable to
Base Rate Loans as provided above.

     (b) Determinations of Margins and Fees.  The margins identified in
Section 2.4(a) and the fees payable under Section 2.11 shall be defined and
determined as follows:

         (i) "Base Rate Margin" shall mean (i) during the period commencing on
         the Closing Date and ending on but not including the first Adjustment
         Date (as defined below), 1.00% per annum and

         (ii) during each period from and including one Adjustment Date to but
         excluding the next Adjustment Date (herein a "Calculation Period"), the
         percent per annum set forth in the table below under the heading "Base
         Rate Margin" and opposite the Leverage Ratio which corresponds to the
         Leverage Ratio set forth in, and as calculated in accordance with, the
         applicable Compliance Certificate.

         (ii) "LIBOR Rate Margin" shall mean (i) during the period commencing on
         the Closing Date and ending on but not including the first Adjustment
         Date, 2.25% per annum and (ii) during each Calculation Period, the
         percent per annum set forth in the table below under the heading "LIBOR
         Rate Margin" and opposite the Leverage Ratio which corresponds to the
         Leverage Ratio set forth in, and as calculated in accordance with, the
         applicable Compliance Certificate.

         (iii) "Commitment Fee Rate" shall mean (i) during the period commencing
         on the Closing Date and ending on but not including the first
         Adjustment Date, 0.25% per annum and (ii) during each Calculation
         Period, the percent per annum set forth in the table below under the
         heading "Commitment Fee Rate" and opposite the Leverage Ratio which
         corresponds to the Leverage Ratio set forth in, and as calculated in
         accordance with, the applicable Compliance Certificate.

     Leverage Ratio                 Base Rate       LIBOR Rate       Commitment
                                    Margin            Margin          Fee Rate

     Greater than or equal to        1.50%            2.75%            0.35%
     2.25

     Greater than or equal to        1.25%            2.50%            0.25%
     1.75 but less than 2.25

     Greater than or equal to        1.00%            2.25%            0.25%
     1.25 but less than 1.75

     Less than 1.25                  0.75%            2.00%            0.20%

Upon delivery of each Compliance Certificate pursuant to this Agreement,
commencing with such Compliance Certificate delivered as of the period ending
on June 30, 2002, the LIBOR Rate Margin (for Interest Periods commencing
after the applicable Adjustment Date), the Base Rate Margin and the
Commitment Fee Rate shall automatically be adjusted in accordance with the
Leverage Ratio set forth therein and the table set forth above, such
automatic adjustment to take effect as of the first Business Day after the
receipt by the Administrative Agent of the related Compliance Certificate
(each such Business Day when such margins or fees change pursuant to this
sentence or the next following sentence, herein an "Adjustment Date").  If
Parent fails to deliver such Compliance Certificate which so sets forth the
Leverage Ratio within the period of time required by this Agreement:  (i) the
LIBOR Rate Margin (for Interest Periods commencing after the applicable
Adjustment Date) shall automatically be adjusted to two and three-fourths
percent (2.75%) per annum; (ii) the Base Rate Margin shall automatically be
adjusted to one and one-half percent (1.50%); and (iii) the Commitment Fee
Rate shall automatically be adjusted to seven-twentieths of one percent
(0.35%), such automatic adjustments to take effect as of the first Business
Day after the last day on which Parent was required to deliver the applicable
Compliance Certificate in accordance with this Agreement and to remain in
effect until subsequently adjusted in accordance herewith upon the delivery
of such Compliance Certificate.

     (c) Computation of Interest and Fees.  Interest based on the Base
Rate and, the LIBOR Rate and all fees shall be calculated on the basis of
actual days elapsed, but computed as if each calendar year consisted of 360
days, subject to limitations of the Highest Lawful Rate. Each determination
by Administrative Agent of the Base Rate and/or the LIBOR Rate shall, in the
absence of manifest error, be conclusive and binding.

     (d) Recapture of Interest Lost as a Result of Interest Limitations.
If at any time the rate of interest applicable to any Loan exceeds the
Highest Lawful Rate, the rate of interest which such Loan bears shall be
limited to the Highest Lawful Rate, but, notwithstanding any subsequent
reductions in the Applicable Rate, the rate of interest which such Loan bears
shall not thereafter be reduced below the Highest Lawful Rate until such time
as the total amount of interest accrued on such Loan equals the amount of
interest which would have accrued if the Applicable Rate had at all times
been in effect.

     (e) Payment Dates.  Accrued interest on the Loans shall be due and
payable in arrears on the first Business Day of each calendar month and on
the Termination Date.

     Section 2.5 Borrowing Procedure.

Borrower shall give Administrative Agent notice of each borrowing of Loans
hereunder in accordance with Section 2.9.  Not later than 12:00 noon
(Dallas, Texas time) on the date specified for each Advance hereunder,
each Bank will make available the amount of the Loan to be made by it on
such date to Administrative Agent, at the Applicable Lending Office of
Administrative Agent, in immediately available funds, for the account of
Borrower.  The amount so received by Administrative Agent shall, subject
to the terms and conditions of this Agreement, be made available to Borrower
promptly by wire transfer of immediately available funds to a deposit account
maintained by Borrower and reasonably acceptable to Administrative Agent.

     Section 2.6 Optional Prepayments, Conversions and Continuations of
Loans.

Subject to Section 2.7, Borrower shall have the right from time to
time to prepay the principal of the Loans, to Convert all or part of a Loan
of one Type into a Loan of another Type or to Continue LIBOR Loans; provided
that:  (a) Borrower shall give Administrative Agent notice of each such
prepayment, Conversion or Continuation as provided in Section 2.9, (b) LIBOR
Loans may only be Converted on the last day of the Interest Period, and (c)
except for Conversions of LIBOR Loans into Base Rate Loans, no Conversions or
Continuations shall be made while a Potential Default or Default has occurred
and is continuing.

     Section 2.7 Mandatory Prepayments.

     (a) Loans.  If at any time the Outstanding Revolving Credit exceeds
an amount equal to the lesser of the Commitments then in effect or the
Borrowing Base then most recently determined or redetermined, Borrower shall
either (i) within one Business Day after the occurrence thereof, pay to
Administrative Agent the amount of such excess as a prepayment of the Loans,
or (ii) within ten (10) Business Days after the occurrence thereof, grant to
the Collateral Agent, for the benefit of the Banks, a valid, perfected First
Priority Lien in Vehicles having an aggregate Orderly Liquidation Value in an
amount necessary to increase the Borrowing Base by the amount of such excess,
subject to any and all limitations specified in the definition of "Borrowing
Base", pursuant to documentation satisfactory to the Collateral Agent and the
Required Banks as provided in Section 5.1(r).

     (b) Application of Mandatory Prepayments.  Any prepayments hereunder
shall be applied to the remaining Loans as set forth in Section 2.17.

Section 2.8 Minimum Amounts.

Except for Conversions pursuant to Sections 2.22 and 2.24, each Advance and
each Conversion of principal of the Loans shall be in an amount at least equal
to (a) $1,000,000 or an integral multiple of $100,000 in excess thereof with
respect to LIBOR Loans or (b) $100,000 or an integral multiple of $100,000 in
excess thereof with respect to Base Rate Loans (Advances, prepayments or
Conversions of or into Loans of different Types or, in the case of LIBOR Loans,
having different Interest Periods at the same time hereunder shall be deemed
separate Advances, prepayments and Conversions for purposes of the foregoing,
one for each Type or Interest Period).  In addition to the foregoing
requirements, there shall not at any time be more than a total of [five (5)]
LIBOR Loans outstanding.  Furthermore, all optional prepayments of principal
of the Loans shall be in an amount equal to $500,000 or an integral multiple
of $100,000 in excess thereof.

     Section 2.9 Certain Notices.

Notices by Borrower to Administrative Agent of terminations or reductions of
Commitments, of Advances, Conversions, Continuations and prepayments of Loans
and of the duration of Interest Periods shall be irrevocable and shall be
effective only if received by Administrative Agent not later than 12:00 noon
(Dallas, Texas time) on the Business Day prior to the date of the relevant
termination, reduction, Advance, Conversion, Continuation or prepayment or
the first day of such Interest Period specified below:

                    Notice                                 Number of
                                                       Business Days
                                                             Prior
Terminations or Reductions of Commitments                      5
Borrowings of Loans as Base Rate Loans                         1
Borrowings of Loans as LIBOR Loans                             2
Conversions or Continuations of Loans                          2
Prepayments of Loans which are Base Rate Loans                 1
Prepayments of Loans which are LIBOR Loans                     2

Each such notice of termination or reduction shall specify the amount of the
Commitments to be terminated or reduced.  Each such notice of Advance,
Conversion, Continuation or prepayment shall specify the Loans to be
borrowed, Converted, Continued or prepaid and the amount (subject to Section
2.8 hereof) and Type of the Loans to be borrowed, Converted, Continued or
prepaid (and, in the case of a Conversion, the Type of Loans to result from
such Conversion) and the date of Advance, Conversion, Continuation or
prepayment (which shall be a Business Day).  Notices of Advances,
Conversions, Continuations or prepayments shall be in the form of Exhibit B
hereto, appropriately completed as applicable.  Each such notice of the
duration of an Interest Period shall specify the Loans to which such Interest
Period is to relate.  Administrative Agent shall promptly notify the Banks of
the contents of each such notice.  In the event that Borrower fails to select
the Type of Loan, or the duration of any Interest Period for any LIBOR Loan,
within the time period and otherwise as provided in this Section 2.9, such
Loan (if outstanding as LIBOR Loan) will be automatically Converted into a
Base Rate Loan on the last day of the preceding Interest Period for such Loan
or (if outstanding as a Base Rate Loan) will remain as, or (if not then
outstanding) will be made as, a Base Rate Loan.  Borrower may not borrow any
LIBOR Loans, Convert any Loans into LIBOR Loans or Continue any Loans as
LIBOR Loans if the interest rate for such LIBOR Loans would exceed the
Highest Lawful Rate.

     Section 2.10   Use of Proceeds.

     (a) Borrower agrees with Administrative Agent and the Banks that
(i) the proceeds of the Loans to be made on and after the Closing Date shall
be used by Borrower, Parent and the Subsidiaries for working capital and
general corporate purposes and to refinance existing Indebtedness and
(ii) the Letters of Credit requested to be issued pursuant to this Agreement
shall be used only to support transactions entered into in the ordinary
course of any Company's business.

     (b) None of the proceeds of any Loan have been or will be used to
acquire any security in any transaction that is subject to Section 13 or 14
of the Securities Exchange Act of 1934, as amended, or to purchase or carry
any margin stock (within the meaning of Regulations T, U or X of the Board of
Governors of the Federal Reserve System).

     Section 2.11 Fees.  Borrower agrees to pay the following fees in
connection with the each Bank's commitment to make Loans and Issuing Bank's
commitment to issue Letters of Credit:

     (a) A facility fee in the amount of $150,000 is payable on the
Closing Date to the Administrative Agent for the account of the Banks in
accordance with their respective Pro Rata Shares;

     (b) A Letter of Credit fee is payable to the Administrative Agent for
the account of the Banks in accordance with their respective Pro Rata Shares,
for the term of each Letter of Credit at (i) the applicable Base Rate Margin
per annum of the aggregate undrawn amount of such Letter of Credit at all
times when Letter of Credit Liabilities are equal to or less than $5,000,000
and (ii) the LIBOR Rate Margin per annum of the aggregate undrawn amount of
such Letter of Credit at all times when Letter of Credit Liabilities exceed
$5,000,000.  Letter of Credit fees shall be payable quarterly in arrears on
each Quarterly Payment Date;

     (c) An issuance fee is payable to Administrative Agent for the
account of the Issuing Bank for the term of each Letter of Credit in an
amount equal to $150, which fee is payable upon issuance of each Letter of
Credit and on each anniversary of the issuance of such Letter of Credit,
together with such other standard issuance, negotiation, processing and/or
administration fees as may be charged by the Issuing Bank;

     (d) Upon any amendment or modification of a Letter of Credit, a
Letter of Credit amendment fee shall be paid to the Issuing Bank, for its own
account, as determined pursuant to the Issuing Bank's customary procedures;

     (e) A commitment fee shall be paid to Administrative Agent, for the
account of each Bank, on the daily average of the unused or unfunded amount
of such Bank's Commitment, for the period from and including the Closing Date
to and including the Termination Date, at a rate equal to the applicable
Commitment Fee Rate per annum based on a 360 day year and the actual number
of days elapsed, which accrued commitment fees shall be payable in arrears on
each Quarterly Payment Date and on the Termination Date.

     (f) An annual agency fee in the amount of $20,000 shall be paid to
Administrative Agent and Collateral Agent, equally, on the Closing Date and
on each anniversary of the Closing Date thereafter.

     Section 2.12 Computations.

Interest and fees payable by Borrower hereunder and under the other Loan Papers
on all Loans shall be computed on the basis of a year of 360 days and the
actual number of days elapsed (including the first day but excluding the last
day)
occurring in the period for which payable unless, in the case of interest, such
calculation would result in a usurious rate, in which case interest shall be
calculated on the basis of a year of 365 or 366 days, as the case may be.

     Section 2.13   Termination or Reduction of Commitments.

     (a) Notwithstanding anything to the contrary contained in this
Agreement, the Commitments shall automatically terminate at 8:00 a.m.
(Dallas, Texas time) on the Termination Date.

     (b) Borrower shall have the right to terminate or reduce in part the
unused portion of the Commitments at any time and from time to time, provided
that (i) it shall give notice of each such termination or reduction as
provided in Section 2.9 and (ii) each partial reduction shall be in an
aggregate amount at least equal to $5,000,000 or an integral multiple of
$100,000 in excess thereof.  The Commitments may not be reinstated after they
have been terminated or increased after they have been reduced.

     Section 2.14   Letters of Credit.

     (a) Subject to the terms and conditions of this Agreement, Borrower
may utilize the Commitments by requesting that the Issuing Bank issue standby
letters of credit (each a "Letter of Credit"); provided, that no Letter of
Credit shall be issued if, after giving effect to the issuance thereof,
(i) the Outstanding Revolving Credit would exceed the Borrowing Base then
most recently determined, (ii) Borrowing Base Availability would be less than
$5,000,000, or (iii) the Letter of Credit Liabilities would exceed
$15,000,000.  Upon the date of issue of each Letter of Credit, the Issuing
Bank shall be deemed, without further action by any party hereto, to have
sold to each Bank, and each Bank shall be deemed, without further action by
any party hereto, to have purchased from the Issuing Bank, a participation to
the extent of such Bank's Pro Rata Share of the Commitments.

     (b) Borrower shall give the Issuing Bank (with a copy to
Administrative Agent) at least three (3) Business Days prior notice
(effective upon receipt and irrevocable unless appropriately revoked
sufficiently prior to issuance of the Letter of Credit) specifying the date
of each Letter of Credit and the nature of the transactions to be supported
thereby.  Upon receipt of such notice and confirmation by the Issuing Bank
with Administrative Agent that such Letter of Credit may be issued in
compliance with this Agreement, the Issuing Bank shall promptly notify
Administrative Agent of the contents thereof and of each such Bank's Pro Rata
Share of the amount of the proposed Letter of Credit, and Administrative
Agent shall promptly thereupon notify the Bank's of such information.  In
addition, the Issuing Bank shall promptly deliver to the Administrative Agent
a photocopy of such Letter of Credit.  Each Letter of Credit shall have an
expiration date that does not exceed one year from the date of issuance
(unless specifically consented to by Administrative Agent, the Issuing Bank
and the Required Banks) and that does not extend beyond the Termination Date,
shall be payable in Dollars, shall support a transaction entered into in the
ordinary course of business of Borrower, Parent or a Subsidiary, shall be
satisfactory in form and substance to the Issuing Bank, and shall be issued
pursuant to such agreements, documents and instruments as the Issuing Bank
may reasonably require, none of which shall be inconsistent with this
Agreement (and to the extent they irreconcilably conflict with this
Agreement, the terms of this Agreement shall control).  Each Letter of Credit
shall (i) provide for the payment of drafts presented for, on or thereunder
by the beneficiary in accordance with the terms thereof, when such drafts are
accompanied by the documents (if any) described in the Letter of Credit and
(ii) to the extent not inconsistent with the terms hereof, be subject to the
Uniform Customs and Practice for Documentary Credits (1993 Revision),
International Chamber of Commerce Publication No. 500 (together with any
subsequent revision thereof approved by a Congress of the International
Chamber of Commerce and adhered to by the Issuing Bank, the "UCP"), and
shall, as to matters not governed by the UCP, be governed by, and construed
and interpreted in accordance with, the Laws of the State of Texas.

     (c) Upon receipt from any Letter of Credit beneficiary of any demand
for payment or other drawing under such Letter of Credit, the Issuing Bank
shall promptly notify Borrower and each Bank as to the amount to be paid as a
result of such demand or drawing and the respective payment date.  If at any
time the Issuing Bank shall make a payment to a beneficiary of a Letter of
Credit pursuant to a drawing under such Letter of Credit, each Bank will pay
to the Issuing Bank, immediately upon the Issuing Bank's demand at any time
commencing after such payment until reimbursement therefor in full by
Borrower, an amount equal to such Bank's Pro Rata Share of such payment,
together with interest on such amount for each day from the date of such
payment to the date of payment by such Bank of such amount at a rate of
interest per annum equal to the Federal Funds Rate.

     (d) Borrower shall be irrevocably and unconditionally obligated to
immediately reimburse the Issuing Bank for any amounts paid by the Issuing
Bank upon any drawing under any Letter of Credit, without presentment,
demand, protest or other formalities of any kind (each such reimbursement
obligation, herein a "Reimbursement Obligation").  The Issuing Bank will pay
to each Bank such Bank's Pro Rata Share of all amounts received from or on
behalf of Borrower for application in payment, in whole or in part, of the
Reimbursement Obligation in respect of any Letter of Credit, but only to the
extent such Bank has made payment to the Issuing Bank in respect of such
Letter of Credit pursuant to Subsection (c) above.  Outstanding Reimbursement
Obligations shall bear interest at the Highest Lawful Rate and such interest
shall be payable on demand.

     (e) The Reimbursement Obligations of Borrower under this Agreement
and the other Loan Papers shall be absolute, unconditional and irrevocable,
and shall be performed strictly in accordance with the terms of this
Agreement and the other Loan Papers under all circumstances whatsoever,
including, without limitation, the following circumstances:

          (i) Any lack of validity or enforceability of any Letter of
     Credit or any other Loan Papers;

          (ii) Any amendment or waiver of or any consent to departure from
     any Loan Papers;

          (iii) The existence of any claim, setoff, counterclaim, defense
     or other right which Borrower or any other Person may have at any time
     against any beneficiary of any Letter of Credit, Administrative Agent,
     the Issuing Bank, the Banks or any other Person, whether in connection
     with this Agreement or any other Loan Papers or any unrelated
     transaction;

          (iv) Any statement, draft or other document presented under any
     Letter of Credit proving to be forged, fraudulent, invalid or
     insufficient in any respect or any statement therein being untrue or
     inaccurate in any respect whatsoever;

          (v) Payment by the Issuing Bank under any Letter of Credit
     against presentation of a draft or other document that does not comply
     with the terms of such Letter of Credit, provided, that such payment
     shall not have constituted gross negligence or willful misconduct of
     the Issuing Bank; and

          (vi) Any other circumstance whatsoever, whether or not similar
     to any of the foregoing, provided that such other circumstance or event
     shall not have been the result of the gross negligence or willful
     misconduct of the Issuing Bank.

     (f)  Borrower assumes all risks of the acts or omissions of any beneficiary
of any Letter of Credit with respect to its use of such Letter of Credit.
Neither Administrative Agent, the Issuing Bank, the Banks nor any of their
respective officers or directors shall have any responsibility or liability
to Borrower or any other Person for: (a) the failure of any draft to bear any
reference or adequate reference to any Letter of Credit, or the failure of any
documents to accompany any draft at negotiation, or the failure of any Person
to surrender or to take up any Letter of Credit or to send documents apart from
drafts as required by the terms of any Letter of Credit, or the failure of any
Person to note the amount of any instrument on any Letter of Credit, (b) errors,
omissions, interruptions or delays in transmission or delivery of any messages,
(c) the validity, sufficiency or genuineness of any draft or other document, or
any endorsement(s) thereon,even if any such draft, document or endorsement
should in fact prove to be in any and all respects invalid, insufficient,
fraudulent or forged or any statement therein is untrue or inaccurate in any
respect, (d) the payment by the Issuing Bank to the beneficiary of any Letter
of Credit against presentation of any draft or other document that does not
comply with the terms of the Letter of Credit, or (e) any other circumstance
whatsoever in making or failing to make any payment under a Letter of Credit;
provided,however, that, notwithstanding the foregoing,Borrower shall have a
claim against the Issuing Bank, and the Issuing Bank shall be liable to
Borrower, to the extent of any direct, but not indirect or consequential,
damages suffered by Borrower which Borrower proves in a final nonappealable
judgment were caused by (i) the Issuing Bank's willful misconduct or gross
negligence in determining whether documents presented under any Letter of
Credit complied with the terms thereof or (ii) the Issuing Bank's willful
failure to pay under any Letter of Credit after presentation to it of documents
strictly complying with the terms and conditions of such Letter of Credit.
The Issuing Bank may accept documents that appear on their face to be in order,
without responsibility for further investigation, regardless of any notice or
information to the contrary.

     (g)  The Issuing Bank may be replaced at any time by written agreemement
among the Borrower, the Administrative Agent, the replaced Issuing Bank and
the successor Issuing Bank.  The Administrative Agent shall notify the Banks
of any such replacement of the Issuing Bank.  At the time any such replacement
shall become effective, the Borrower shall pay all unpaid fees accrued for the
account of the replaced Issuing Bank pursuant to Section 2.11(c).  From and
after the effective date of any such replacement, (i) the successor Issuing
Bank shall have all the rights and obligations of the Issuing Bank under this
Agreement with respect to Letters of Credit to be issued thereafter, and (ii)
references herein to the term "Issuing Bank" shall be deemed to refer to such
successor and all previous Issuing Banks, as the context shall require.  After
the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall
remain a party hereto and shall continue to have all the rights and obligations
of an Issuing Bank under this Agreement with respect to Letters of Credit
issued by it prior to such replacement, but shall not be required to issue
additional Letters of Credit.

     Section 2.15    Method of Payment.

All payments of principal, interest, fees and other amounts to be made by
Borrower, Parent or any Subsidiary under this Agreement or any other Loan
Paper shall be made via wire transfer of funds to Administrative Agent for
the account of each Bank's Applicable Lending Office in Dollars and in
immediately available funds, without setoff, deduction or counterclaim, not
later than 12:00 noon (Dallas, Texas time) on the date on which such payment
shall become due (each such payment made after such time on such due date to be
deemed to have been made on the next succeeding Business Day).  Borrower or such
other Person shall, at the time of making each such payment, specify to
Administrative Agent the sums payable by such Person under this Agreement or
the other Loan Document to which each such payment is to be applied (and in the
event that such Person fails to so specify, or if an Default has occurred and
is continuing or if a Potential Default would exist after the making of such
payment, Administrative Agent may apply such payment to such Person's Loans,
Reimbursement Obligations and other Obligations in such order and manner as
Administrative Agent may elect, subject to Section 2.16).  Upon the occurrence
and during the continuation of a Default, all proceeds of any Collateral and
all other funds of Borrower, Parent or any Subsidiary in the possession of
Administrative Agent or any Bank may be applied by Administrative Agent to the
Obligations in such order and manner as Administrative Agent may elect, subject
to the provisions of Section 2.16.  Notwithstanding the foregoing, if a Default
has occurred and is continuing, Administrative Agent and the Banks agree among
themselves that all such payments, proceeds and funds, shall be applied (or,
in the case of Letter of Credit Liabilities consisting of the undrawn face
amount of Letters of Credit, held by Administrative Agent as cash collateral
for application against) pro rata to the Outstanding Revolving Credit.  Each
payment received by Administrative Agent under this Agreement or any other
Loan Paper for the account of the Bank shall be paid promptly to such Bank,
in immediately available funds, for the account of such Bank's Applicable
Lending Office.  Whenever any payment under this Agreement or any other Loan
Paper shall be stated to be due on a day that is not a Business Day, such
payment may be made on the next succeeding Business Day, and such extension
of time shall in such case be included in the computation of the payment of
interest and commitment fee, as the case may be.

     Section 2.16   Pro Rata Treatment.

Except to the extent otherwise provided in this Agreement:  (a) each Loan
shall be made by the Banks under Section 2.1, each payment of commitment
fees under Section 2.11 shall be made for the account of the Banks, and each
termination or reduction of the Commitments under Section 2.13 shall be
applied to the appropriate Commitments of the applicable Banks, pro rata
according to the respective unused Commitments; (b) the making, Conversion
and Continuation of Loans of a particular Type (other than Conversions
provided for by Section 2.25) shall be made pro rata among the Banks holding
Loans of such Type according to the amounts of their respective appropriate
Commitments; (c) each payment and prepayment by Borrower of principal of or
interest on Loans of a particular Type shall be made to Administrative Agent
for the account of the Banks holding Loans of such Type pro rata in accordance
with the respective unpaid principal amounts of such Loans held by such Banks;
(d) Interest Periods for Loans of a particular Type shall be allocated among
the Banks holding Loans of such Type pro rata according to the respective
principal amounts held by such Banks; and (e) the Banks (other than the Issuing
Bank) shall purchase participations in the Letters of Credit pro rata in
accordance with their respective Pro Rata Share.

     Section 2.17   Sharing of Payments, Etc.

If a Bank shall obtain payment of any principal of or interest on any of the
Obligations due to such Bank hereunder through the exercise of any right of
setoff, banker's lien,counterclaim or similar right, or otherwise, it shall
promptly purchase from the other Banks participations in the Obligations held
by the other Banks in such amounts, and make such adjustments from time to
time, as shall be equitable to the end that all Banks shall share pro rata in
accordance with the unpaid principal and interest on the Obligations then due
to each of them.  To such end, all Banks shall make appropriate adjustments
among themselves (by the resale of participations sold or otherwise) if all or
any portion of such excess payment is thereafter rescinded or must otherwise
be restored.  Each of Borrower, Parent and the Subsidiaries agrees, to the
fullest extent it may effectively do so under applicable Law, that any Bank
so purchasing a participation in the Obligations by the other Banks may
exercise all rights of setoff, banker's lien, counterclaim or similar rights
with respect to such participation as fully as if such Bank were a direct
holder of Obligations in the amount of such participation.  Nothing contained
herein shall require any Bank to exercise any such right or shall affect the
right of any Bank to exercise, and retain the benefits of exercising, any
such right with respect to any other indebtedness, liability or obligation of
Borrower, Parent or any of the Subsidiaries.

     Section 2.18    Non-Receipt of Funds by Administrative Agent.

Unless Administrative Agent shall have been notified by a Bank or Borrower
("Payor") prior to the date on which such Bank is to make payment to
Administrative Agent of the proceeds of a Loan to be made by it hereunder or
Borrower is to make a payment to Administrative Agent for the account of one
or more of Banks, as the case may be (such payment being herein called the
"Required Payment"), which notice shall be effective upon receipt, that Payor
does not intend to make the Required Payment to Administrative Agent,
Administrative
Agent may assume that the Required Payment has been made and may, in reliance
upon such assumption (but shall not be required to), make the amount thereof
available to the intended recipient on such date and, if Payor has not in
fact made the Required Payment to Administrative Agent, the recipient of such
payment shall, on demand, pay to Administrative Agent the amount made
available to it together with interest thereon in respect of the period
commencing on the date such amount was so made available by Administrative
Agent until the date Administrative Agent recovers such amount at a rate per
annum equal to the Federal Funds Rate for such period.

     Section 2.19    Withholding Taxes.

     (a) All payments by Borrower of principal of and interest on the Loans
and the Letter of Credit Liabilities and of all fees and other amounts payable
under the Loan Papers shall be made free and clear of, and without deduction
by reason of, any present or future taxes, levies, duties, imposts, assessments
or other charges levied or imposed by any Tribunal (other than any taxes
imposed on the taxable income of Administrative Agent or any Bank
or any lending office of Administrative Agent or such Bank by any
jurisdiction in which Administrative Agent or such Bank or any such lending
office is located).  If any such taxes, levies, duties, imposts, assessments
or other charges are so levied or imposed, Borrower will (i) make additional
payments in such amounts so that every net payment of principal of and
interest on the Loans and the Letter of Credit Liabilities and of all other
amounts payable by it under the Loan Papers, after withholding or deduction
for or on account of any such present or future taxes, levies, duties,
imposts, assessments or other charges (including any tax imposed on or
measured by taxable income of a Bank attributable to payments made to or on
behalf of a Bank pursuant to this Section 2.19 and any penalties or interest
attributable to such payments), will not be less than the amount provided for
herein or therein absent such withholding or deduction (provided that
Borrower shall not have any obligation to pay such additional amounts to any
Bank to the extent that such taxes, levies, duties, imposts, assessments or
other charges are levied or imposed by reason of the failure of such Bank to
comply with the provisions of Section 2.20), (ii) make such withholding or
deduction and (iii) remit the full amount deducted or withheld to the
relevant Tribunal in accordance with applicable Law.  Without limiting the
generality of the foregoing, Borrower will, upon written request of any Bank,
reimburse each such Bank for the amount of (A) such taxes, levies, duties,
imports, assessments or other charges so levied or imposed by any Tribunal
and paid by such Bank as a result of payments made by Borrower under or with
respect to the Loans other than such taxes, levies, duties, imports,
assessments and other charges previously withheld or deducted by Borrower
which have previously resulted in the payment of the required additional
amount to Bank, and (B) such taxes, levies, duties, assessments and other
charges so levied or imposed with respect to any Bank reimbursement under the
foregoing clause (A), so that the net amount received by such Bank (net of
payments made under or with respect to the Loans and the Letter of Credit
Liabilities) after such reimbursement will not be less than the net amount
such Bank would have received if such taxes, levies, duties, assessments and
other charges on such reimbursement had not been levied or imposed.  Borrower
shall furnish promptly to Administrative Agent for distribution to each
affected Bank, as the case may be, upon request of such Bank, official
receipts evidencing any such payment, withholding or reduction.

     (b) Borrower will indemnify Administrative Agent and each Bank
(without duplication) against, and reimburse Administrative Agent and each
Bank for, all present and future taxes, levies, duties, imposts, assessments
or other charges (including interest and penalties) levied or collected
(whether or not legally or correctly imposed, assessed, levied or collected),
excluding, however, any taxes imposed on the overall taxable income of
Administrative Agent or such Bank or any lending office of Administrative
Agent or such Bank by any jurisdiction in which Administrative Agent or such
Bank or any such lending office is located, on or in respect of this
Agreement, any of the Loan Papers or the Obligations or any portion thereof
("reimbursable taxes").  Any such indemnification shall be on an after-tax
basis, taking into account any such reimbursable taxes imposed on the amounts
paid as indemnity.

     (c) If and to the extent actually known by such Bank, each Bank will
use reasonable efforts to notify Borrower and Administrative Agent, in a
reasonably prompt fashion after such assignment is made, of any assignment of
the Commitment or the Loans by such Bank to an Eligible Assignee which is
subject to a withholding tax that will impose any payment obligation upon
Borrower pursuant to this Section 2.19.  Each Bank will use reasonable
efforts to notify Borrower and Administrative Agent of any amounts to be paid
by Borrower pursuant to this Section 2.19 in a reasonably prompt fashion
after such Bank becomes aware of the circumstances which require the payment
of such amounts by Borrower.

     Section 2.20 Withholding Tax Exemption.

Each Bank that is notincorporated or otherwise formed under the Laws of the
U.S. or a state thereof agrees that it will, prior to or on or about the Closing
Date or the date upon which it becomes a party to this Agreement, deliver to
Borrower and Administrative Agent two duly completed copies of U.S. Internal
Revenue Service Form 1001, 4224 or W-8, as appropriate, certifying in any case
that such Bank is entitled to receive payments from Borrower under any Loan
Paper without deduction or withholding of any U.S. federal income taxes.  Each
Bank which so delivers a Form 1001, 4224 or W-8 further undertakes to deliver
to Borrower and Administrative Agent two additional copies of such form (or a
successor form) on or before the date such form expires or becomes obsolete
or after the occurrence of any event requiring a change in the most recent
form so delivered by it, and such amendments thereto or extensions or
renewals thereof as may be reasonably requested by Borrower or Administrative
Agent, in each case certifying that such Bank is entitled to receive payments
from Borrower under any Loan Paper without deduction or withholding of any
U.S. federal income taxes, unless an event (including without limitation any
change in treaty, Law or regulation) has occurred prior to the date on which
any such delivery would otherwise be required which renders all such forms
inapplicable or which would prevent such Bank from duly completing and
delivering any such form with respect to it and such Bank advises Borrower
and Administrative Agent that it is not capable of receiving such payments
without any deduction or withholding of U.S. federal income tax.

     Section 2.21 Reinstatement of Obligations.

Notwithstanding anything to the contrary contained in this Agreement or any
other Loan Paper, if the payment of any amount of principal of or interest
with respect to the Loans, the Reimbursement Obligations or any other amount
of the Obligations, or any portion thereof, is rescinded, voided or must
otherwise be refunded by Administrative Agent, any Bank or Issuing Bank upon
the insolvency,bankruptcy or reorganization of Borrower or any of the
Subsidiaries or otherwise for any reason whatsoever, then each of (a) the
Obligations, (b) the Loan Papers (including, without limitation, this
Agreement, the Notes, the Guaranty Agreements and the Security Agreement),
(c) the indebtedness,liabilities and obligations of Borrower, Parent and the
Subsidiaries under the Loan Papers, and (d) all Liens for the benefit of
Administrative Agent and the Banks created under or evidenced by the Loan
Papers, will be automatically reinstated and become automatically effective
and in full force and effect, all to the extent that and as though such
payment so rescinded,voided or otherwise refunded had never been made.

     Section 2.22    Additional Costs.

     (a) Borrower shall pay directly to each Bank from time to time,
within ten days after the request of such Bank, the costs incurred by such
Bank which such Bank reasonably determines are attributable to its making or
maintaining of any LIBOR Loans or its obligation to make any of such Loans,
or any reduction in any amount receivable by such Bank hereunder in respect
of any such Loans or obligations (such increases in costs and reductions in
amounts receivable being herein called "Additional Costs"), resulting from
any Regulatory Change occurring after the Closing Date which:

          (i) changes the basis of taxation of any amounts payable to
     such Bank under this Agreement or its Notes in respect of any of
     such Loans (other than income taxes and franchise taxes attributable
     to net income of such Bank or its Applicable Lending Office for any
     of such Loans by the jurisdiction in which such Bank has its
     principal office or such Applicable Lending Office);

          (ii) imposes or modifies any reserve, special deposit, minimum
     capital, capital ratio or similar requirement relating to any
     extensions of credit or other assets of, or any deposits with or other
     liabilities or commitments of, such Bank (including any of such Loans
     or any deposits referred to in the definition of "LIBOR Rate" in
     Section 1.1 hereof, but excluding the LIBOR Reserve Percentage to the
     extent it is included in the calculation of the LIBOR Rate); or

          (iii) imposes any other condition affecting this Agreement or the
     Notes or any of such extensions of credit or liabilities or
     commitments.

     Each applicable Bank will notify Borrower (with a copy to
     Administrative Agent) of any event occurring after the Closing Date
     which will entitle such Bank to compensation pursuant to this Section
     2.22(a) as promptly as practicable after it obtains knowledge thereof
     and determines to request such compensation, and (if so requested by
     Borrower) will, if and to the extent that it is reasonably feasible for
     such Bank to do so given administrative and other considerations,
     designate a different Applicable Lending Office for the LIBOR Loans of
     such Bank if such designation will avoid the need for, or reduce the
     amount of, such compensation and will not, in the reasonable opinion of
     such Bank, violate any Law, rule or regulation or be in any way
     disadvantageous to such Bank.  Each applicable Bank will furnish
     Borrower with a certificate setting forth the basis and the amount of
     each request of such Bank for compensation under this Section 2.22(a).
     If any Bank requests compensation from Borrower under this
     Section 2.22(a), Borrower may, by notice to such Bank (with a copy to
     Administrative Agent), suspend the obligation of such Bank to make or
     Continue making, or Convert Base Rate Loans into, LIBOR Loans until the
     Regulatory Change giving rise to such request ceases to be in effect
     (in which case the provisions of Section 2.25 hereof shall be
     applicable).

     (b) Without limiting the effect of the foregoing provisions of this
Section 2.22, in the event that, by reason of any Regulatory Change, any Bank
either (i) incurs Additional Costs based on or measured by the excess above a
specified level of the amount of a category of deposits or other liabilities
of such Bank which includes deposits by reference to which the interest rate
on LIBOR Loans is determined as provided in this Agreement or a category of
extensions of credit or other assets of such Bank which includes LIBOR Loans
or (ii) becomes subject to restrictions on the amount of such a category of
liabilities or assets which it may hold, then, if such Bank so elects by
notice to Borrower (with a copy to Administrative Agent), the obligation of
such Bank to make or Continue making, or Convert Base Rate Loans into, LIBOR
Loans hereunder shall be suspended until such Regulatory Change ceases to be
in effect (in which case the provisions of Section 2.25 hereof shall be
applicable).

     (c) Determinations and allocations by any Bank for purposes of this
Section 2.22 of the effect of any Regulatory Change on its costs of
maintaining its obligation to make Loans or issue Letters of Credit or of
making or maintaining Loans or issuing Letters of Credit or on amounts
receivable by it in respect of Loans or Letters of Credit, and of the
additional amounts required to compensate such Bank in respect of any
Additional Costs, shall be conclusive in the absence of manifest error,
provided that such determinations and allocations are made on a reasonable
basis.

     Section 2.23    Limitation on Types of Loans.

Anything herein to the contrary notwithstanding, if with respect to any LIBOR
Loans for any Interest Period therefor:

     (a) Administrative Agent determines (which determination shall be
made reasonably and in good faith and shall be conclusive absent manifest
error) that quotations of interest rates for the relevant deposits referred
to in the definition of "LIBOR Rate" in Section 1.1 hereof are not being
provided in the relative amounts or for the relative maturities for purposes
of determining the rate of interest for such Loans as provided in this
Agreement; or

     (b) any Bank determines (which determination shall be in good faith
and shall be conclusive absent manifest error) and notifies Administrative
Agent that the relevant rates of interest referred to in the definition of
"LIBOR Rate" in Section 1.1 hereof on the basis of which the rate of interest
for such Loans for such Interest Period is to be determined do not accurately
reflect the cost to such Bank of making or maintaining such Loans for such
Interest Period;

then Administrative Agent shall give Borrower prompt notice thereof and, so
long as such condition remains in effect, such Bank shall be under no
obligation to make LIBOR Loans or to Convert Base Rate Loans into LIBOR Loans
and Borrower shall, on the last day(s) of the then current Interest Period(s)
for the outstanding LIBOR Loans, either prepay such Loans or Convert such
Loans into Base Rate Loans in accordance with the terms of this Agreement.

     Section 2.24   Illegality.

Notwithstanding any other provision of this Agreement, in the event that it
becomes unlawful for any Bank or its Applicable Lending Office to (a) honor
its obligation to make LIBOR Loans or (b) maintain LIBOR Loans, then such
Bank shall promptly notify Borrower thereof (with a copy to Administrative
Agent) and such Bank's obligation to make or maintain LIBOR Loans and to
Convert Base Rate Loans into LIBOR Loans hereunder shall be suspended until
such time as such Bank may again make and maintain LIBOR Loans (in which case
the provisions of Section 2.25 hereof shall be applicable).

     Section 2.25   Treatment of Affected Loans.

If the obligation of any Bank to make or Continue, or to Convert Base Rate
Loans into, LIBOR Loans is suspended pursuant to Section 2.22 or 2.24 hereof,
such Bank's LIBOR Loans shall be automatically Converted into Base Rate Loans
on the last day(s) of the then current Interest Period(s) for the LIBOR Loans
or, in the case of a Conversion required by Section 2.22(b) or 2.24 hereof,
on such earlier date as such Bank may specify to Borrower (with a copy to
Administrative Agent) and, unless and until such Bank gives notice as provided
below that the circumstances specified in Section 2.22 or 2.24 hereof which gave
rise to such Conversion no longer exist:

     (a) To the extent that such Bank's LIBOR Loans have been so
Converted, all payments and prepayments of principal which would otherwise be
applied to such Bank's LIBOR Loans shall be applied instead to its Base Rate
Loans; and

     (b) All Loans which would otherwise be made or Continued by such Bank
as LIBOR Loans shall be made as or Converted into Base Rate Loans and all
Loans of such Bank which would otherwise be Converted into LIBOR Loans shall
be Converted instead into (or shall remain as) Base Rate Loans.
If such Bank gives notice to Borrower (with a copy to Administrative Agent)
that the circumstances specified in Section 2.22 or 2.24 hereof which gave
rise to the Conversion of such Bank's LIBOR Loans pursuant to this Section
2.25 no longer exist (which such Bank agrees to do promptly upon such
circumstances ceasing to exist) at a time when LIBOR Loans are outstanding,
such Bank's Base Rate Loans shall be automatically Converted, on the first
day(s) of the next succeeding Interest Period(s) for such outstanding LIBOR
Loans, to the extent necessary so that, after giving effect thereto, all
Loans held by Banks holding LIBOR Loans and by such Bank are held pro rata
(as to principal amounts, Types and Interest Periods) in accordance with
their respective Commitment.

     Section 2.26    Compensation.

Borrower shall pay to Administrative Agent for the account of each Bank,
promptly upon the request of such Bank through Administrative Agent, such
amount or amounts as shall be sufficient (in the reasonable opinion of such
Bank) to compensate it for any loss, cost or expense incurred by it as a
result of:

     (a) any payment, prepayment or Conversion of a LIBOR Loan for any
reason (including, without limitation, the acceleration of the outstanding
Loans pursuant to this Agreement) on a date other than the last day of an
Interest Period for such Loan; or

     (b) any failure by Borrower for any reason (including, without
limitation, the failure of any conditions precedent specified in Article 3 to
be satisfied) to borrow, Convert or prepay a LIBOR Loan on the date for such
Advance, Conversion or prepayment specified in the relevant notice of
Advance, prepayment or Conversion under this Agreement. The loss (as opposed
to cost or expense) to be compensated under clause (a) of this Section 2.26
shall not exceed an amount equal to the excess, if any,of (i) the amount of
interest which otherwise would have accrued on the principal amount so paid,
prepaid or Converted to the last day of the Interest Period at the applicable
rate for such LIBOR Loan over (ii) the cost to the applicable Bank of the
interest component of such LIBOR Loan which otherwise would have accrued.

     Section 2.27    Capital Adequacy.

If, after the Closing Date, any Bank shall have determined that the adoption
or implementation of any applicable Law, rule or regulation regarding capital
adequacy, or any change therein, or any change in the interpretation or
administration thereof by any central bank or other Tribunal charged with the
interpretation or administration thereof, or compliance by such Bank (or its
parent) with any guideline, request or directive regarding capital adequacy
(whether or not having the force of law) of any central bank or other
Tribunal, has or would have the effect of reducing the rate of return on such
Bank's (or its parent's) capital as a consequence of its obligations hereunder
or the transactions contemplated hereby to a level below that which such Bank
(or its parent) could have achieved but for such adoption, implementation,
change or compliance (taking into consideration such Bank's policies with
respect to capital adequacy) by an amount deemed by such Bank to be material,
then from time to time, within ten Business Days after demand by such Bank
(with a copy to Administrative Agent), Borrower shall pay to such Bank such
additional amount or amounts as will compensate such Bank (or its parent) for
such reduction.  A certificate of such Bank claiming compensation under this
Section 2.27 and setting forth the additional amount or amounts to be paid to
it hereunder shall be conclusive absent manifest error, provided that the
determination thereof is made on a reasonable basis.  In determining such
amount or amounts, such Bank may use any reasonable averaging and attribution
methods.

                            ARTICLE III
                         CONDITIONS PRECEDENT

     Section 3.1     Conditions Precedent to Initial Loans and Letters of
Credit.

The obligation of the Banks to make the initial Loans and to issue
the initial Letter of Credit shall be subject to the fulfillment of the
following conditions precedent on or before the Closing Date in a manner
satisfactory to the Banks:

     (a)   Each Bank shall have received the following:

          (i)   A copy of resolutions approving this Agreement and
     authorizing the transactions contemplated in this Agreement and the
     other Loan Papers, duly adopted by the Board of Directors of each of
     the Companies, accompanied by a certificate of the Secretary or
     Assistant Secretary of the respective Company, dated the date hereof,
     that such copy is a true and correct copy of resolutions duly adopted
     at a meeting (which may be held if permitted by applicable Law and, if
     required by such Law, by the Bylaws of the respective Company, by
     conference telephone or similar communications equipment by means of
     which all persons participating in a meeting can hear each other) of,
     or by the unanimous written consent of (if permitted by applicable Law
     and, if required by such Law, by the Bylaws of the respective
     Company),the Board of Directors of the respective Company, and that
     such resolutions have not been amended, modified, repealed, or revoked
     in any respect, and are in full force and effect as of the date hereof.

          (ii)  A certificate of incumbency of all officers of Borrower and
     each Company who will be authorized to execute or attest this Agreement
     or any document delivered pursuant hereto on behalf of Borrower or such
     Company, dated the date hereof, executed by the Secretary or Assistant
     Secretary of Borrower or such Company.

          (iii) The articles of incorporation of Borrower and each Company
     certified by the Secretary of State of the state of its incorporation
     and dated a current date.

          (iv)  The bylaws of Borrower and each Company certified by its
     Secretary or Assistant Secretary.

          (v)   Certificates of the appropriate government officials of the
     state of incorporation of Borrower and each Company as to its existence
     and, to the extent applicable, good standing and certificates of the
     appropriate government officials of each state in which Borrower and
     each Company is required to qualify to do business and where failure to
     so qualify could reasonably be expected to have a Material Adverse
     Effect, as to such Person's qualification to do business and good
     standing in such state, all dated a current date.

          (vi)  Its Revolving Credit Note duly executed by Borrower.

          (vii) A Guaranty Agreement (or ratification thereof, if
     applicable), in form and substance satisfactory to the Required Banks,
     appropriately executed and delivered by each of the Companies other
     than Borrower.

          (viii) (A) The Security Agreement in substantially the form of
     Exhibit G and executed by the Borrower and each Company, granting to
     the Administrative Agent, for the benefit of the Banks, a security
     interest in all accounts, instruments, chattel paper, deposit accounts,
     documents, contracts, and inventory of the Companies; (B) The Vehicles
     Security Agreement in substantially the form of Exhibit H and executed
     by the Borrower and each Company, granting to the Collateral Agent, for
     the benefit of the Banks, a security interest in all Vehicles of the
     Company; (C) Code, tax and judgment Lien search reports listing all
     documentation on file against Borrower and each Company in such
     jurisdictions as the Administrative Agent shall require; and
     (D) authorized and executed documentation as the Administrative Agent
     may deem necessary to perfect or protect its Liens under its Security
     Agreement, including, without limitation:  (1) financing statements
     under the Code and other applicable documentation under the Laws of any
     jurisdiction with respect to the perfection of Liens; and
     (2) endorsement and delivery of (y) the W&B Note, and (z) all
     promissory notes and other chattel paper and instruments payable to the
     Companies, or any of them, in an aggregate principal amount greater
     than $1,000,000, to the Administrative Agent pursuant to an endorsement
     in form and substance satisfactory to the Administrative Agent and the
     Required Banks.

          (ix)  Duly authorized and executed (where required) UCC-3
     termination statements, mortgage releases and such other documentation
     as shall be necessary to terminate or release all existing Liens on the
     assets of Borrower or the Companies other than the Permitted Liens.
     (x) One or more Memorandum of Negative Pledge Agreement in form
     and substance satisfactory to the Administrative Agent and the Required
     Banks, executed by the respective owners of any and all real property
     owned by any Company, for recording in the appropriate real property
     records of the respective counties where such real property is located.

          (xi)  A Contribution and Indemnification Agreement in form and
     substance satisfactory to the Administrative Agent and the Required
     Banks, executed by the Companies.

          (xii) A certificate or certificates in form and substance
     satisfactory to the Administrative Agent and the Banks, dated the
     Closing Date and signed by the Chief Financial Officer of Parent and an
     authorized officer of each other Company, certifying as to the solvency
     of each Company as of the Closing Date and after giving effect to the
     transactions contemplated by the Loan Papers.

          (xiii) Evidence that the credit agreement being refinanced by this
     Agreement has been terminated, all obligations and indebtedness
     thereunder have been paid and satisfied in full, all Liens securing
     such indebtedness have been released, and all letters of credit
     thereunder have been returned and cancelled, or the foregoing shall
     occur concurrently with the closing of this Agreement, or provision for
     the foregoing shall have been made to the satisfaction of the
     Administrative Agent and the Required Banks.

          (xiv) Certificates of insurance summarizing the insurance
     policies of the Borrower and the Companies required by this Agreement
     and reflecting Administrative Agent as additional insured under such
     policies and as loss payee with respect to all policies covering
     Collateral.

          (xv) An opinion of counsel for Borrower and the Companies,
     substantially in form and substance acceptable to the Required Banks
     and their counsel, covering favorably such matters relating or incident
     to the transactions contemplated by this Agreement and the other Loan
     Papers as the Required Banks may request.

          (xvi) The fees due on the Closing Date in accordance with this
     Agreement.

          (xvii) Such other documents as Administrative Agent or any Bank
     may reasonably request.

     (b) The representations and warranties contained in Article IV of
this Agreement shall be true and correct in all material respects on and as
of such date with the same effect as if made on and as of such date.

     (c) No Default or Potential Default, shall be in existence on such
date or after giving effect to such initial Loans or Letter of Credit.

     (d) All corporate and legal proceedings and all documents required to
be completed and executed by the provisions of, and all instruments to be
executed in connection with the transactions contemplated by, this Agreement
and any related agreements shall be satisfactory in form and substance to
Administrative Agent and the Required Banks, and Administrative Agent and the
Banks shall have received all information and copies of all documents,
including records of corporate proceedings, required by this Agreement and
any related agreements to be executed or which Administrative Agent or any
Bank may reasonably have requested in connection therewith, such documents,
where appropriate, to be certified by proper corporate or governmental
authorities.

     (e) No legal proceeding shall be pending or threatened against
Borrower or any other Company by or before any, Tribunal which could
reasonably be expected to have a Material Adverse Effect.

     (f) The consummation of such Loans or issuance of such Letter of
Credit shall not violate any applicable provision of any Law.

     Section 3.2    Conditions of Subsequent Advances.

The obligation of the Banks to make any Advance or Continuation or Conversion
requested to be made by it prior to the Termination Date, or issue any Letter
of Credit, shall be subject to the fulfillment of each of each following
conditions precedent on or before the date of such Advance, Continuation,
Conversion or issuance of Letter of Credit in a manner satisfactory to
Administrative Agent, the Issuing Bank and the Banks, as applicable:

     (a) Administrative Agent and such Bank shall have received the notice
regarding such Advance in compliance with this Agreement or, in the case of
any Conversion or Continuation, Administrative Agent and such Bank shall
either have received the notice regarding such activity in compliance with
this Agreement or Administrative Agent and such Bank shall have received
notice regarding such Letter of Credit pursuant to this Agreement.

     (b) The representations and warranties contained in Article IV of
this Agreement shall be true and correct in all material respects when made
and as of the date of such Advance, Continuation, Conversion or Letter of
Credit, as the case may be, with the same effect as if made on and as of such
date.

     (c) No Default or Potential Default, shall be in existence on the
date of any Advance, Conversion, Continuation or Letter of Credit, or after
giving effect to such Advance, Conversion, Continuation or Letter of Credit.

     (d) With regard to a Letter of Credit (i) the Issuing Bank shall have
received an application and agreement for issuance of letter of credit,
promissory note and/or reimbursement agreement relating to such Letter of
Credit duly executed by Borrower with respect thereto, on the Issuing Bank's
standard form; and (ii) the form and substance of the Letter of Credit shall
be reasonably satisfactory to the Issuing Bank.

     (e) All corporate and legal proceedings and all documents required to
be completed and executed by the provisions of, and all instruments to be
executed in connection with the transactions contemplated by, this Agreement
and any other Loan Paper shall be satisfactory in form and substance to
Administrative Agent and the Banks and shall remain valid and effective and
shall not have been revoked or attempted to be revoked and Administrative
Agent and the Banks shall have received all information and copies of all
documents, including records of corporate proceedings, required by this
Agreement and any related agreements to be executed or which Administrative
Agent or any Bank may reasonably have requested in connection therewith, such
documents, where appropriate, to be certified by proper corporate or
governmental authorities.

     (f) No legal proceeding shall be pending or threatened against
Borrower or any other Company by or before any Tribunal which could
reasonably be expected to have a Material Adverse Effect.

     (g) The consummation of such Advance, Conversion or Continuation or
issuance of such Letter of Credit shall not violate any applicable provisions
of any Law.

     (h) Any Bank's obligations to make any Advance or issue any Letter of
Credit hereunder shall not have been terminated pursuant to any provision of
this Agreement.

     (i) There shall not have occurred any event or series of events that
has had or is likely to have a Material Adverse Effect on the financial
performance or business activities of Parent or any Subsidiary.

     Section 3.3    Effect of Request for any Subsequent Advance or Conversion
or Continuation, or Request for Letter of Credit.

Each notice requesting an Advance, each notice requesting a Conversion or
Continuation, and each request for issuance of a Letter of Credit, shall be
deemed to be a representation and warranty that the matters set forth in
Subsections 3.2(b) and (c) and in Article IV are true and correct as of the
date of the requested Advance, Conversion, Continuation or Letter of Credit.

     Section 3.4 Landlord Lien Waivers.

Borrower and each Company covenants that it will use its best efforts to
obtain lien waivers from each of the landlords of the property where any
Collateral is located within sixty (60) days after the Closing Date.

     Section 3.5    Title Reports.

Borrower and each Company will cooperate with the Administrative Agent and its
counsel to obtain title reports on all real property owned by the Companies,
or any of them, as soon as practical after the Closing Date, and shall correct
any title defects as the Administrative Agent may reasonably request and obtain
any Lien releases as
the Administrative Agent may require.

                              ARTICLE IV
                    CERTAIN REPRESENTATIONS AND WARRANTIES

     Borrower and each other Company jointly and severally represent and
warrant to Administrative Agent and the Banks that:

     Section 4.1     Corporate Existence and Authority; Names.

Each Company (i) is a corporation duly organized, validly existing, and in good
standing under the Laws of its State of incorporation (ii) is duly qualified to
transactbusiness as a foreign corporation in each jurisdiction where the
nature and extent of its business and properties require the same, and (iii)
possesses all requisite authority, power, licenses, permits, and franchises
to conduct its business and execute, deliver, and comply with the terms of the
Loan Papers, which have been duly authorized and approved by all necessary
corporate action and for which no approval or consent of any Tribunal is
required.

     Section 4.2    Financial Statements.

The consolidated Financial Statements of Parent as of December 31, 2001 and
as of March 31, 2002 (collectively the "Current Financials") were prepared in
accordance with GAAP and fairly present the consolidated financial conditions
and the results of operations of the Companies as of, and for the portion of
the fiscal year ending on, such dates. There were no material liabilities,
direct or indirect, fixed or contingent, of the Companies as of the date of
the Current Financials which are not reflected therein or in the notes
thereto. Except for transactions directly related to, or specifically
contemplated by, this Agreement and transactions heretofore disclosed in
writing to the Banks, there have been no material adverse changes in the
respective financial conditions of the Companies from those shown in the
Current Financials between such date and the date hereof, nor has any Company
incurred any material liability, direct or indirect, fixed, or contingent,
except for the Existing Indebtedness.

     Section 4.3     Compliance with Laws and Documents; Existing Defaults.

None of the Companies is, nor will the execution, delivery and the
performance of and compliance with the terms of the Loan Papers cause any of
the Companies to be: (i) in violation of any Laws or the Certificates or
Articles of Incorporation or Bylaws of any of the Companies in any respect
which could have any effect whatsoever upon the validity, performance or
enforceability of any of the terms of the Loan Papers or which could
reasonably be expected to have a Material Adverse Effect; or (ii) in default
(nor has any event occurred which, with notice or lapse of time or both,
could constitute a default) under any material agreement or instrument to
which any Company is a party or under which any Company or any of its
property is bound. Except as set forth on Schedule 4.3 attached hereto
("Existing Litigation Schedule"), none of the Companies is involved in, nor
is any Company aware of the threat of, any Litigation where the maximum
aggregate potential loss to the Borrower, the Parent and the Companies is
greater than $250,000; none of the Litigation described on the Existing
Litigation Schedule could reasonably be expected to have a Material Adverse
Effect; and, except as set forth on the Existing Litigation Schedule, there
are no outstanding or unpaid judgments against any of the Companies.

     Section 4.4 Enforceability.

The execution, delivery and performance of the Loan Papers to which each of
the Companies is a party have been duly authorized by resolutions of the board
of directors of such Company.  The Loan Papers have been duly and validly
executed and delivered by each of the Companies that is a party thereto and
constitute the legal, valid and binding obligations of the Companies,
enforceable against the Companies in accordance with their respective terms,
except as limited by bankruptcy, insolvency or other Laws of general
application relating to the enforcement of creditors'rights and general
principles of equity.

     Section 4.5      Payment of Taxes.

Borrower and the other Companies have filed all federal, state and other tax
returns and reports required to be filed, and have paid all Taxes required by
them to the extent that such Taxes have become due (except to the extent that
the same are being contested in good faith by appropriate proceedings
diligently prosecuted and as to which adequate reserves have been set aside
in conformity with GAAP).

     Section 4.6      Plan Obligations.

Schedule 4.6 lists each Plan which is currently maintained, established or
contributed to by any Company or any other Group Member. Without limiting the
generality of the foregoing, no Company or other Group Member has maintained,
established or contributed to (i) an "employee pension benefit plan" as
defined in Section 3(2) of the Employee Retirement Income Security Act of 1974,
as amended, and the regulations and rulings thereunder ("ERISA") which is
subject to the provisions of Title IV of ERISA, or (ii) a "multiemployer plan"
as such term is defined in Section 4001 of ERISA.  No Company has provided, or
agreed to provide, benefits under any health Plan to any former employee or
dependent of such employee for periods subsequent to the severance of such
employee's employment, other than as specifically required under Section 4980B
of the IRC.  There has been no Reportable Event or prohibited transaction
(within the meaning of Section 486 of ERISA and Section 4975 of the IRC) with
respect to any Plan, all contributions to any Plan have been made in cash or
stock and, there have been no loans or other extensions of credit, except loans
to participants in Plans, which loans are and have been in compliance with
Section 408 of ERISA.

     Conwell, AirPro, Cartage, Borrower and LML have adopted, and all
participating employees are covered by, the Injury Benefit Plan identified on
Schedule 4.6.  The Injury Benefit Plan is an "Employee Welfare Benefit Plan"
as defined in Section 3(l) of ERISA. All provisions of the Injury Benefit
Plan are governed by ERISA.

     Section 4.7     Purpose of Advances and Letters of Credit.

The proceeds of the Advances hereunder will be used for working capital
purposes of the Companies, to pay Reimbursement Obligations, for Capital
Expenditures permitted by Section 5.2(h) and for other general corporate
purposes.  None of the proceeds of the Loans will be used, directly or
indirectly, for the purpose, whether immediate, incidental or ultimate,
of purchasing or carrying any Margin Stock and none of such proceeds will be
used in violation of applicable Law (including, without limitation, the Margin
Regulations). The Letters of Credit will be issued in the ordinary course of
the Companies' businesses, primarily in connection with insurance claims made.

     Section 4.8     Ownership of the Companies.

(i) Parent owns all of the issued and outstanding capital stock of FFE,
Express, Cartage and Middleton (ii) FFE owns all of the issued and outstanding
stock of Borrower, Conwell, AirPro, Logistics and Lisa, (iii) AirPro owns all
of the issued and outstanding capital stock of CPI, and (iv) except as
provided in this Section 4.8, none of the Companies has any Other Subsidiary.

     Section 4.9     Existing Indebtedness.

Except as fully described in Schedule 4.9 attached hereto (the "Existing
Indebtedness"), none of the Companies is directly, indirectly or contingently
obligated with respect to any Indebtedness.

     Section 4.10    Rights in Properties; Existing Liens.

Each of the Companies has good indefeasible title to or valid leasehold
interests in its properties and assets, real and personal, including the
properties, assets and leasehold interests reflected in the Financial
Statements described in Section 4.2, and none of such properties or assets is
subject to a Lien other than Permitted Liens.

     Section 4.11    Material Agreements.

Attached hereto as Schedule 4.11 is a description of all material agreements to
which any Company is a party or its assets may be bound or affected.

     Section 4.12    Environmental Matters.

     (a) Each of the Companies is in compliance in all material respects
with all federal, state and local Laws and regulations now applicable to its
business and operations or which (to its knowledge) will be applicable
thereto relating to pollution control and environmental contamination,
including, but not limited to, all Laws and regulations governing the
generation, use, collection, treatment, storage, transportation, recovery,
removal, discharge or disposal of Hazardous Materials.

     (b) To the best of each Company's knowledge, there are no presently
outstanding allegations that any Company is now or at any time prior hereto
was in material violation of such Laws and regulations; there are no material
administrative or judicial proceedings presently pending against any Company
pursuant to such Laws or regulations; and there is no material claim
presently outstanding against any Company which was asserted pursuant to such
Laws or regulations.

     (c) There are no facts or circumstances known to any Company that
could form the basis for the assertion of any material claim against any
Company relating to environmental matters, including, but not limited to, any
claim arising from past or present environmental practices asserted under
CERCLA, RCRA or any other federal, state or local environmental statute.
Section 4.13 Common Enterprise.

Each Company expects to derive benefit from this Agreement, both on its
separate capacity and as a member of an affiliated and integrated corporate
group.

     Section 4.14   Workers' Compensation.

Neither Borrower nor any of the other Companies are subscribers to the Texas
Workers' Compensation Act. Borrower and each other Company has taken all
reasonable precautions that may be necessary or appropriate to minimize the
risk of loss associated with claims that would otherwise be covered by the
Texas Workers' Compensation Act.  Such precautions include, as appropriate and
in consideration of the nature of each employee's duties, without limitation,
(i) the implementation of safety programs, employee training programs, drug
screening of employees and pre-employment physicals, and (ii) the purchasing of
insurance with substantial and reasonable adequate coverage available for such
risks.

     Section 4.15    Solvency.

On the Closing Date and on the date of each Loan and the date of issuance of
each Letter of Credit, each of the Companies is, and after giving effect to the
transactions contemplated hereby and the requested Loan or Letter of Credit,
will be, Solvent.

                         ARTICLE V
               CERTAIN COVENANTS OF THE COMPANIES

     Section 5.1     Affirmative Covenants.

Until the Obligations have been paid and performed in full and the obligation
of the Banks to make Loans or issue Letters of Credit have been irrevocably
terminated, the Companies shall:

     (a) Compliance Certificate.  On or before forty-five (45) days after
the end of the first, second and third quarters of each fiscal year of
Parent, and on or before ninety (90) days after the fourth quarter of each
fiscal year of Parent, deliver to each Bank a Compliance Certificate.

     (b) Financial Statements.  Deliver to each Bank, as soon as
practicable, (i) and in any event within ninety (90) days after the end of
each fiscal year of Parent, complete and detailed Financial Statements
(prepared on a consolidated basis), including balance sheet, operating
statement, reconciliation of earned surplus and such supporting schedules as
any Bank may request, accompanied by the certificate of a firm of independent
public accountants acceptable to the Banks that such statements have been
prepared in accordance with GAAP and fairly present the consolidated
financial condition of the Companies during the fiscal year just ended, and
that during the course of their audit of the Companies, nothing came to their
attention that caused them to believe the Companies were not in compliance
with the terms of Subsections 5.1(f), 5.1(k), 5.1(m), 5.2(a) and 5.2(f), (ii)
and in any event within forty-five (45) days after the end of such calendar
quarter, consolidated balance sheets of the Companies as of the close of such
quarter, and consolidated operating statements of the Companies for the part
of the fiscal year ended at the close of such quarter, accompanied by the
certificate of the Chief Financial Officer or Treasurer of Parent that such
statements are true and correct, were prepared in accordance with GAAP and
fairly present the consolidated financial conditions and results of
operations of the Companies, and (iii) after a request by any Bank, such
other information pertaining to the Companies and their affairs as such Bank
shall from time to time request in writing.

     (c) Insurance.  (i) Maintain, and cause each other Company to
maintain, insurance with such insurance companies, in such amounts, and
covering such risks as shall be satisfactory to the Administrative Agent and
the Collateral Agent, with loss payable to the Administrative Agent and the
Collateral Agent; provided that the Companies shall be permitted to be self-
insured for up to $5,000,000 per occurrence but shall not self-insure for
amounts in excess of $5,000,000 per occurrence without the prior written
consent of Required Banks; (ii) deliver to the Administrative Agent
certificates evidencing such insurance and, within ninety (90) days after the
close of each fiscal year of Borrower, a report certified by the Chief
Financial Officer or Vice President of Finance of Borrower describing all
insurance of the Companies in force as of the close of the fiscal year just
ended; and (iii) cause all fire and casualty insurance policies on Vehicles,
to which Liens in favor of the Collateral Agent, for the benefit of the Banks
have attached, to be made payable to the Companies, the Collateral Agent and
the Administrative Agent, as their interests may appear, and in such event
deliver certificates evidencing such insurance to the Administrative Agent.

     (d) Taxes.  Pay and discharge, and cause each other Company to pay
and discharge, before delinquent, all Taxes assessed upon any Company or any
of the assets of any Company, or any part thereof; provided, however, that
any Company may defer the payment of any Taxes (i) which are being diligently
contested in good faith by appropriate proceedings, and (ii) for which
reserves deemed adequate by the Banks have been set aside to the satisfaction
of the Banks for the payment thereof; and further provided, that, if and to
the extent any such contested Taxes are finally adjudicated to be valid,
Borrower or a Company will promptly discharge them and for such purpose may
use the reserve related thereto.

     (e) Operating Rights, etc.  Maintain and preserve, and cause each
other Company to maintain and preserve, its Operating Rights, licenses,
franchises, certificates, corporate qualification and good standing in all
appropriate states and other appropriate authorities necessary to carry on
its businesses, as an interstate and intrastate motor carrier or otherwise,
in all states in which it does business.

     (f) Fixed Charge Coverage Ratio.  Maintain a Fixed Charge Coverage
Ratio at all times equal to or greater than 1.20 to 1.00.  "Fixed Charge
Coverage Ratio" shall mean, as of the date of any determination thereof for
the twelve (12) month period ending as of the date of any determination, the
ratio of (i) the amount of the Companies' consolidated EBITDAR to (ii) the
amount of the Companies' consolidated Fixed Charges; all as determined in
conformity with GAAP.  "EBITDAR" means, for any period and any Person the
total of the following, each calculated without duplication, for such Person
on a consolidated basis for such period:  (a) Net Income; plus (b) any
provision for (or less any benefit from) income or franchise taxes included
in determining Net Income; plus (c) interest expense deducted in determining
Net Income; plus (d) amortization and depreciation expense deducted in
determining Net Income; plus (e) lease and rental expenses paid under
operating leases or rental agreements intended to produce income and deducted
in determining Net Income; minus (f) any dividends or redemptions of capital
stock paid in cash during such period.  "Fixed Charges" means all interest
expenses, the amount of lease and rental expenses associated with all
operating leases and rental agreements that are not cancelable within the
immediately subsequent 12-month period, taxes actually paid, the portion of
long-term debt actually paid or due but not paid and lease expenses under
capitalized leases.

     (g) Information and Other Documents, New Entities.  Except as
otherwise may be provided in Section 9.14, cause each New Entity to execute
and deliver to Administrative Agent (i) a Guaranty Agreement, (ii) an
agreement in the form of Exhibit E attached hereto with the blanks completed
accurately, (iii) a Security Agreement in substantially the form of Exhibit G
hereto, and (iv) a Vehicles Security Agreement in substantially the form of
Exhibit H hereto and deliver, and cause each Company to deliver, to the Banks
such information (not otherwise required to be furnished herein) respecting
the business affairs, assets, and liabilities of any of the Companies, and
such opinions, certifications and documents, in addition to those herein
mentioned, as any Bank may reasonably request, and allow, and cause each
other Company to allow, the Banks or their agents to inspect any of the
records and properties of any Company, from time to time, during reasonable
business hours.

     (h) Payment of Debts. Pay and discharge, and cause each other Company
to pay and discharge, when due all debts, liabilities and obligations of
Borrower and each other Company; provided that the covenant contained in this
Subsection is solely for the benefit of the Banks and their successors and
assigns; and provided further that neither Borrower nor any other Company
shall be required to pay any such debt, liability or obligation if the
validity thereof is being diligently contested in good faith and reserves
deemed adequate by the Banks have been recorded therefor in accordance with
GAAP.

     (i) Maintenance of Existence, Assets.  Maintain, and cause each other
Company to maintain, its corporate and legal existence, and keep, and cause
each other Company to keep, all assets in good repair, working order and
condition, and from time to time make all necessary and proper repairs,
renewals, replacements, additions, betterments and improvements thereto, to
the end that the business of Borrower and each other Company may be properly,
efficiently and advantageously conducted at all times in accordance with
sound and prudent standards of business management.

     (j) Expenses.

          (i) Pay (A) all reasonable expenses incurred by the
     Administrative Agent, the Collateral Agent and their respective
     Affiliates, including the reasonable fees, charges and disbursements of
     counsel for the Administrative Agent and the Collateral Agent, in
     connection with the syndication of the credit facilities provided for
     herein, the preparation and administration of this Agreement, the other
     Loan Papers or any amendments, modifications or waivers of the
     provisions hereof or thereof (whether or not the transactions
     contemplated hereby or thereby shall be consummated), (B) all
     reasonable expenses incurred by the Issuing Bank in connection with the
     issuance, amendment, renewal or extension of any Letter of Credit or
     any demand for payment thereunder, (C) all expenses incurred by the
     Administrative Agent, the Collateral Agent, the Issuing Bank, and,
     after a Default, any Bank, including the fees, charges and
     disbursements of any counsel for the Administrative Agent, the
     Collateral Agent, the Issuing Bank or any Bank in connection with the
     enforcement or protection of its rights in connection with this
     Agreement and the other Loan Papers, including its rights under this
     Section, or in connection with the Loans made or Letters of Credit
     issued hereunder, including all such expenses incurred during  any
     workout, restructuring or negotiations in respect of such Loans or
     Letters of Credit, and including all costs and expenses in connection
     with the repossession, storage, or sale of Vehicles or other Collateral
     and the collection of accounts,  (D) all transfer, stamp, documentary,
     or other similar taxes, assessments or charges levied by any Tribunal
     in respect of this Agreement or any of the other Loan Papers, (v) all
     costs, expenses, assessments and other charges incurred in connection
     with any filing, registration, recording, or perfection of any security
     interest or Lien contemplated by this Agreement or any other Loan
     Paper, and (vi) all other costs and expenses incurred by the
     Administrative Agent or the Collateral Agent in connection with this
     Agreement, any other Loan Paper or the Collateral, including without
     limitation costs, fees, expenses and other charges incurred in
     connection with performing or obtaining any audit or appraisal in
     respect of the Collateral or for any title searches, filing fees,
     recording costs and lien searches.

          (ii)  WHETHER OR NOT ANY LOAN IS EVER FUNDED, INDEMNIFY
     ADMINISTRATIVE AGENT, COLLATERAL AGENT AND THE BANKS AND HOLD
     ADMINISTRATIVE AGENT, COLLATERAL AGENT AND THE BANKS HARMLESS FROM AND
     AGAINST ANY AND ALL LIABILITIES, LOSSES, DAMAGES, COSTS AND EXPENSES OF
     ANY KIND (INCLUDING, WITHOUT LIMITATION, EXPENSES OF LITIGATION, COURT
     COSTS AND THE REASONABLE FEES AND DISBURSEMENTS OF COUNSEL FOR
     ADMINISTRATIVE AGENT, COLLATERAL AGENT AND THE BANKS (OR OF ANY OTHER
     PERSON ENGAGED BY ADMINISTRATIVE AGENT, COLLATERAL AGENT OR ANY BANK)
     IN CONNECTION WITH ANY INVESTIGATIVE, ADMINISTRATIVE OR JUDICIAL
     PROCEEDING, WHETHER OR NOT ADMINISTRATIVE AGENT, COLLATERAL AGENT OR
     ANY BANK SHALL BE DESIGNATED A PARTY THERETO) WHICH MAY BE INCURRED BY
     ADMINISTRATIVE AGENT, COLLATERAL AGENT OR ANY BANK, RELATING TO OR
     ARISING OUT OF THIS AGREEMENT OR THE OTHER LOAN PAPERS OR ANY ACTUAL OR
     PROPOSED USE OF PROCEEDS OF THE LOANS HEREUNDER; PROVIDED, THAT,
     ADMINISTRATIVE AGENT, COLLATERAL AGENT AND THE BANKS SHALL NOT HAVE THE
     RIGHT TO BE INDEMNIFIED HEREUNDER FOR THEIR OWN OR THEIR
     REPRESENTATIVE'S OR ADMINISTRATIVE AGENT'S OR COLLATERAL AGENT'S GROSS
     NEGLIGENCE OR WILLFUL MISCONDUCT AS DETERMINED BY A COURT OF COMPETENT
     JURISDICTION. IT IS THE EXPRESS INTENTION OF THE PARTIES HERETO THAT
     THE INDEMNITY PROVIDED FOR HEREIN IS INTENDED TO AND SHALL INDEMNIFY
     AND PROTECT ADMINISTRATIVE AGENT, COLLATERAL AGENT AND THE BANKS FROM
     THE CONSEQUENCES OF THEIR OWN NEGLIGENCE (AS OPPOSED TO GROSS
     NEGLIGENCE OR WILLFUL MISCONDUCT), WHETHER OR NOT THAT NEGLIGENCE IS
     THE SOLE OR CONCURRING CAUSE OF ANY LIABILITY, LOSS, DAMAGE, COST OR
     EXPENSE OF ANY KIND.

          (iii) Any amount to be paid under this Subsection to
     Administrative Agent, Collateral Agent or any Bank shall be a demand
     obligation owing by Borrower and if not paid within fifteen (15) days
     of demand by Administrative Agent, Collateral Agent or such Bank
     thereof shall bear interest from the date of expenditure by
     Administrative Agent, Collateral Agent or such Bank until paid at the
     Highest Lawful Rate.

          (iv) The obligations of Borrower under this Subsection shall
     survive payment of the Obligations and assignment of any right
     hereunder.

     (k) Leverage Ratio.  Maintain a Leverage Ratio equal to or less than
2.50 to 1.00.  The term "Leverage Ratio" means, as of the date of any
determination thereof, the ratio of (i) Funded Debt of the Companies on a
consolidated basis as of such measurement date to (ii) EBITDAR of the
Companies on a consolidated basis for the twelve (12) month period then
ending, all as determined in conformity with GAAP.  "Funded Debt" means as to
any Person at any time (without duplication) (a) all obligations of such
Person for borrowed money, including without limitation any notes payable to
the seller in connection with any acquisition and the Loans; (b) all
obligations of such Person evidenced by bonds, notes, debentures, or other
similar instruments; (c) the aggregate minimum amount of all lease or rental
payments to be paid under operating leases or rental agreements that are not
cancelable; (d) all capitalized lease obligations of such Person; (e) all
obligations of others, which such Person has Guaranteed or given surety for
or for which such Person has otherwise personally secured or indemnified such
others; (f) all obligations secured by a Lien existing on property owned by
such Person, whether or not the obligations secured thereby have been assumed
by such Person or are non-recourse to the credit of such Person; (g) all
reimbursement obligations of such Person (whether contingent or otherwise) in
respect of letters of credit, bankers' acceptances, surety or other bonds and
similar instruments (including the Reimbursement Obligations).

     (l) Borrowing Base Reports.  Deliver to each Bank, as soon as
possible, and in any event within thirty (30) days after and as of the end of
each calendar month, a Borrowing Base Report dated as of the end of the
immediately preceding calendar month; provided, however, that if Borrowing
Base Availability is at any time less than $10,000,000, such Borrowing Base
Reports shall be furnished weekly within five (5) days after the end of each
week.

     (m) Compliance Income.  Maintain a positive Compliance Income.  The
term "Compliance Income" means (a) Net Income of the Companies on a
consolidated basis for each fiscal year, plus (b) any provision for (or less
any benefit from) income or franchise taxes included in determining Net
Income for such period, plus (c) any nonrecurring, extraordinary expenses
deducted in determining Net Income for such period.

     (n) ERISA.  Immediately upon becoming aware of the occurrence of any
event or condition which has the result that any of the representations or
warranties contained in Section 4.6, if made on and again as of any date on
or after the date of this Agreement, cease to be true, Borrower shall give
the Banks a written notice specifying (i) the nature of such events or
condition, (ii) what action Borrower and the other Companies are taking or
propose to take with respect thereto, and (iii) when known, any action taken
by the Internal Revenue Service or the Department of Labor with respect
thereto. With respect to any Plan maintained or adopted by any Company, such
Company will at all times make prompt payments of contributions required to
be made to meet the minimum funding standards of ERISA.

     (o) Laws.  Each Company will comply with the provisions of any and
all Laws, and with the provisions of all agreements, documents and
instruments material to its business and operations, and maintain its ability
to perform its obligations under all such agreements, documents and
instruments.

     (p) Workers' Compensation.  Any Company that is or becomes a
nonsubscriber to the Texas Workers' Compensation Act shall take all
reasonable precautions that may be necessary or appropriate from time to time
to minimize the risk of loss to Borrower and the other Companies associated
with claims that would otherwise be covered by the Texas Workers'
Compensation Act if such, Company had continued to Subscribe to such Act.
Such precautions shall include, without limitation, (i) the implementation of
safety programs, employee training programs, drug screening of employee and
pre-employment physical (unless prohibits by law), (ii) the purchasing of
insurance with substantial and reasonably adequate coverage available for
such risks and (iii) the maintenance of a welfare benefit plan, identical or
similar to the Injury Benefit Plan, that is governed by ERISA in all
respects.

     (q) Projections.  As soon as available and in any event before
December 1 of each fiscal year of Parent, Borrower will deliver (i) a
forecasted consolidated balance sheet and statements of income and cash flow
of Parent and the Subsidiaries on a quarterly basis, including the
assumptions utilized in the preparation of such projections (in narrative
form) for the two (2) forthcoming fiscal years and a proforma projection of
Parent's compliance with the financial covenants in this Agreement for the
same period.

     (r) Further Assurances and Collateral Matters.  (i) The Parent will,
and will cause each other Company to execute and deliver such further
documentation and take such further action as may be requested by the
Administrative Agent or the Collateral Agent to carry out the provisions and
purposes of the Loan Papers and to create, preserve, protect and perfect the
Liens of Administrative Agent and Collateral Agent, respectively, for the
benefit of itself and the Banks in the Collateral.  (ii) In the event the
amount of Borrowing Base Availability is less than $5,000,000 or any
requested Loan or Letter of Credit would cause Borrowing Base Availability to
be less than $5,000,000, Parent shall and shall cause each of the
Subsidiaries to cause the perfection of the Lien of the Collateral Agent, for
the benefit of the Banks, in Vehicles having an aggregate Orderly Liquidation
Value such that Borrowing Base Availability is at all times greater than or
equal to $5,000,000.  In such event or in the event Borrower otherwise elects
to include any of the Vehicles in the Borrowing Base, Parent will cause such
Lien in such Vehicles to be so perfected pursuant to documentation acceptable
to the Required Banks, and will execute and deliver, and will cause the
Subsidiaries to execute and deliver, to Collateral Agent and the Banks such
documents, in form and substance satisfactory to Collateral Agent and its
counsel and the Required Banks, as may be necessary or appropriate to
evidence and provide for the same, including without limitation the original
certificates of title for such Vehicles, applications for notation of Lien,
and any and all other documentation and action necessary to cause the Lien of
the Collateral Agent in each such Vehicle to be recorded and noted (in
accordance with the applicable recording and notation requirements and other
Governmental Requirements of each appropriate state and other jurisdiction)
on the certificate of title of each such Vehicle.  Parent and the
Subsidiaries shall pay all fees, costs, expenses and taxes relating to the
foregoing.  (iii) Upon written request from Borrower, Collateral Agent shall,
from time to time, take all steps necessary to release the Lien in favor of
Collateral Agent and the Banks against any one or more Vehicles; provided,
Collateral Agent shall not be obligated to release any such Lien unless
(A) the Vehicle being released from the Lien is being sold or otherwise
disposed in the ordinary course of business and for fair market value; (B)
after giving effect to the Lien release, (i) the outstanding amount of the
Obligations will not be greater than the Borrowing Base, and (ii) the
Borrowing Base Availability will not be less than $5,000,000; and (C) no
Default or Potential Default exists or would result therefrom.

     (s) Accounts Receivable Report.  As soon as available, and in any
event within thirty (30) days after the end of each calendar month a summary
accounts receivable aging report for Borrower showing all accounts receivable
of Borrower that are 1-30, 31-60, 61-90, and over 90 days past the invoice
date; provided, however, that if Borrowing Base Availability is at any time
less than $10,000,000, such reports shall be furnished weekly within five (5)
days after the end of each week.

     (t) Inspections; Collateral Audits; Appraisals.  Upon reasonable
notice (which may be telephonic notice), at all reasonable times and as often
as the Administrative Agent or the Collateral Agent may request, permit any
authorized representative designated by the Administrative Agent or the
Collateral Agent, including without limitation any consultant engaged by the
Administrative Agent or the Collateral Agent, together with any authorized
representatives of any Bank desiring to accompany the Administrative Agent or
the Collateral Agent, to visit and inspect the properties and financial
records of the Companies and to make extracts from such financial records and
permit any authorized representative designated by the Administrative Agent
or the Collateral Agent (together with any accompanying representatives of
any Bank) to discuss the affairs, finances and condition of the Companies
with the appropriate financial officer and such other officers as the Parent
or other Company shall deem appropriate; and the Companies will cooperate
with the Administrative Agent and the Collateral Agent and exert its best
efforts to arrange for the Administrative Agent or the Collateral Agent,
their respective authorized representatives (including consultants) and any
accompanying authorized representative of any Bank to meet with the
Companies' independent public accountants and each Company agrees to permit
such accountants to discuss the affairs, finances and condition of the
Companies with the Administrative Agent, the Collateral Agent and such
representatives.  The Administrative Agent agrees that it shall schedule any
meeting with any such independent public accountant through the Parent, and
an officer of the Parent shall have the right to be present at any such
meeting.  The Administrative Agent, the Collateral Agent and any consultant
of the Administrative Agent or the Collateral Agent shall each have the right
to examine (and any authorized representatives of any Bank shall have the
right to accompany the Administrative Agent or the Collateral Agent during
any such examination), as often as the Administrative Agent or the Collateral
Agent may request, the existence and condition of the Collateral, books and
records of the Companies and to review their compliance with the terms and
conditions of this Agreement and the other Loan Papers, subject to
governmental confidentiality requirements.  The Administrative Agent and the
Collateral Agent shall each also have the right to verify with any and all
customers of the Companies the existence and condition of the accounts
receivable of the Companies, as often as the Administrative Agent or the
Collateral Agent may require, without prior notice to or consent of any of
the Companies.  Without in any way limiting the foregoing, (a) the
Administrative Agent and the Collateral Agent shall each have the right to
conduct accounts receivable audits at the Companies' expense as often as the
Administrative Agent, the Collateral Agent or any Bank may request (but
initially scheduled for once per year prior to the occurrence of a Default or
Potential Default), and (b) the Administrative Agent or the Collateral Agent
shall have the right to order and obtain Vehicle Appraisals, at the
Companies' expense, not to exceed eight (8) Vehicle Appraisals during the
three (3) year period following the Closing Date, prior to the occurrence of
a Default or Potential Default, and as often as the Administrative Agent or
Collateral Agent may request at any time after such period or after the
occurrence of a Default or Potential Default.  Without in any way limiting
the foregoing, each Company agrees to cooperate in all respects with the
Administrative Agent, the Collateral Agent and their respective
representatives and consultants in connection with any and all inspections,
examinations and other actions taken by the Administrative Agent, the
Collateral Agent or any of their respective representatives or consultants
pursuant to this Section.  The Companies hereby jointly and severally agree
to promptly pay, upon demand by the Administrative Agent, the Collateral
Agent or the applicable Bank, any and all fees and expenses incurred by the
Administrative Agent, the Collateral Agent or any Bank in connection with any
inspection, examination or review permitted by the terms of this Section.

     (u) Notices of Material Events.  Furnish to the Administrative Agent
and each Bank prompt written notice of the following:

          (i) the occurrence of any Default or Potential Default;

          (ii) the filing or commencement of any action, suit or
     proceeding by or before any Tribunal or arbitrator against or affecting
     any Company or any Affiliate thereof that, if adversely determined,
     could reasonably be expected to result in a Material Adverse Effect;
     and

          (iii) any other development that results in, or could reasonably
     be expected to result in, a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement
of a financial officer or other executive officer of the Parent setting forth
the details of the event or development requiring such notice and any action
taken or proposed to be taken with respect thereto.

     Section 5.2    Negative Covenants.

Until the Obligations have been paid and performed in full and the obligation
of the Banks to make Loans and to issue Letters of Credit have been irrevocably
terminated, none of the Companies shall, directly or indirectly, without the
prior written consent of the Banks:

     (a) Minimum Tangible Net Worth.  Permit, as of the last day of any
fiscal quarter, Parent's Consolidated Tangible Net Worth to be less than the
sum of (i) $66,000,000, plus (ii) seventy-five percent (75%) of the positive,
consolidated net income of the Companies for each fiscal quarter ending after
the Closing Date (i.e., any negative net income for a fiscal quarter shall
not reduce the minimum Consolidated Tangible Net Worth), plus (iii) one
hundred percent (100%) of the net cash proceeds from any issuances of equity
securities by Parent or any other Company or other contributions to the
capital or equity of Parent or any other Company.

     (b) Transfer of Operating Rights.  Create, incur, grant, assume or
suffer to exist any Lien on, nor sell, transfer or otherwise dispose of, any
present or future Operating Rights of any Company, including but not limited
to franchises, certificates, authorizations, permits and licenses.

     (c) Loans, Investments, and Mergers.  Make any loan to or investment
in, nor purchase stock or other securities of, nor merge or consolidate with,
nor purchase all or substantially all of the assets of, any Person other than
Borrower or another Company, except (i) mergers and consolidations of two or
more Companies or acquisitions of a Company by another Company, provided no
Default or Potential Default exists, (ii) secured loans to owner-operators
who have independent contractor service agreements with Borrower or any other
Company not to exceed $1,000,000 in the aggregate outstanding at any time,
(iii) the W&B Note, (iv) indebtedness of purchasers to the Companies for the
purchase price of Vehicles sold by the Companies to such purchasers, provided
that such Indebtedness together with loans made pursuant to clause (v) of
this Subsection (c) shall not exceed $1,000,000 in the aggregate outstanding
at any time, (v) loans, other than the foregoing, provided that such loans
together with indebtedness pursuant to clause (iv) of this Subsection (c)
shall not exceed $1,000,000 in the aggregate outstanding at any time,
(vi) Permitted Investments, and (vii) other investments from time to time in
an amount outstanding at any time less than or equal to $100,000.

     (d) Contingent Liabilities.  Assume, Guarantee, purchase, agree to
purchase or suffer to exist any other liability, direct or indirect, for the
payment of any Indebtedness, except to the Banks, of any Person, other than
Borrower or another Company, in an aggregate amount in excess of $5,000,000
at any time outstanding.

     (e) Dividends and Distributions.  Declare, order, pay, make or set
apart any sum for (a) any dividend or other distribution, direct or indirect,
on account of any shares of any class of stock of Parent or any other Company
now or hereafter outstanding; (b) any redemption, conversion, exchange,
retirement, sinking fund or similar payment, purchase or other acquisition
for value, direct or indirect, of any shares of any class of stock of Parent
or any other Company now or hereafter outstanding; or (c) any payment made to
retire, or to obtain the surrender of, any outstanding warrants, options or
other rights to acquire shares of any class of stock of Parent or any other
Company now or hereafter outstanding except:

          (i) The Parent and each other Company may from time to time
     redeem its stock that was issued pursuant to the terms of employee
     stock option plans offered by each such Company, respectively, on or
     before the Closing Date; provided that the maximum amount of such
     redeemed stock shall be an amount equal to or less than 1% of the
     capital stock of the Parent or such Subsidiary, as applicable, as of
     the Closing Date.

          (ii) In addition to the redemptions permitted under clause (i)
     above, the Parent may from time to time redeem its stock, provided that
     the aggregate maximum amount of the redemption price for such stock
     shall not be greater than the proceeds of death benefits received by
     Parent under life insurance policies.

          (iii) If no Default or Potential Default exists, Parent may
     declare and pay cash dividends from time to time if on the date each
     such dividend is declared Borrower delivers to Administrative Agent
     computations showing (A) that the Leverage Ratio of Parent and its
     consolidated subsidiaries as of the date such dividends are declared
     is, after giving effect to such dividends, equal to or less than 2.5 to
     1.00; (B) that the Leverage Ratio of Parent and its consolidated
     Subsidiaries determined pro forma as of the date of the most recently
     delivered Quarterly Report as if such dividend had already been
     declared and paid is equal to or less than 2.5 to 1.00; and (C) that
     Parent and each other Company would otherwise be in compliance with all
     other financial covenants contained in this Agreement if such financial
     covenants were measured as of the date such dividend is paid and after
     giving effect to such dividend.

          (iv) The Companies may make, declare or pay dividends and make
     other distributions with respect to their capital stock to the extent
     necessary to permit the Borrower to pay the Obligations and to pay
     expenses and taxes incurred in the ordinary course of business.

          (v) Borrower and any other Company may declare and pay
     dividends on their common stock payable solely in shares of common
     stock (provided that fractional shares may be paid in cash).

     (f)  Indebtedness.  Assume, create or suffer to exist any Indebtedness
except (i) Indebtedness owed to the Banks pursuant to this Agreement, (ii)
additional Indebtedness not for borrowed money incurred in the ordinary
course of business constituting trade payables not more than 90 days past due
and accrued liabilities, including, without limitation, accrued Taxes and
payroll obligations, (iii) Existing Indebtedness, (iv) Indebtedness under
Hedge Agreements, and (v) additional Indebtedness for borrowed money incurred
in the ordinary course of business not to exceed $1,000,000 in the aggregate
outstanding at any time with respect to all Companies.

     (g) Sales of Assets.  Be a party to any sale, transfer, or other
disposition of all or any part of Borrower's or any other Company's property,
assets or business, except sales of Vehicles and other equipment in the
ordinary course of business and for fair market vale so long as (i) after
giving effect to such sale, (1) the outstanding amount of the Obligations
will not be greater than the Borrowing Base, and (2) the Borrowing Base
Availability will not be less than $5,000,000, and (ii) no Default or
Potential Default exists or would result therefrom, and in any event will not
sell, transfer or otherwise dispose of any of Parent's or any other Company's
interest in the Subsidiaries (including, without limitation, any of the stock
of the Subsidiaries).

     (h) Capital Expenditures.  Permit the aggregate amount of all Capital
Expenditures made by the Companies, during any, twelve (12) month period (net
of the proceeds of the sale or exchange of any fixed assets), to exceed
$17,500,000.

     (i) Negative Pledge.  Borrower and each of the other Companies will
not create, assume or suffer to exist any Lien on any asset or property (or
any interest therein) now owned or hereafter acquired by Borrower or any
other Company, except: (i) any Lien existing pursuant to any order of
attachment, distraint or similar legal process arising in connection with
court proceedings so long as the execution or other enforcement thereof is
effectively stayed and the claims secured thereby are being contested in good
faith by appropriate proceedings, and (ii) Permitted Liens.

     (j) Transactions with Affiliates. The Companies will not enter into
any transaction with any Affiliate except in the ordinary course and pursuant
to the reasonable requirements of their businesses and upon fair and
reasonable terms no less favorable to the Companies than would result in a
comparable arm's length transaction with a Person who is not an Affiliate;
provided, however, that the Companies may enter into lease agreements, as
lessee, with Affiliates for tractors or trailers with lease payments less
than or equal to the aggregate amount of $200,000 per month.

     (k) ERISA.  No Company or other Group Member will (i) establish,
maintain or participate in any way in a Plan that is subject to the
provisions of Title IV of ERISA, or (ii) provide benefits under any health
plan to former employees in excess of those provided on the date hereof,
without the prior written consent of the Banks.

     (l) Restrictive Agreements.  Enter into, incur or permit to exist any
agreement or other arrangement that prohibits, restricts or imposes any
condition upon (i) the ability of any Company to create, incur or permit to
exist any Lien upon any of its property or assets, or (ii) the ability of any
Company to pay dividends or other distributions with respect to any shares of
its capital stock or to make or repay loans or advances to any other Company
or to guarantee Indebtedness of any other Company; provided that (A) the
foregoing shall not apply to restrictions and conditions imposed by law or by
any of the Loan Papers, (B) clause (i) of the foregoing shall not apply to
restrictions or conditions imposed by any agreement relating to secured
Indebtedness permitted by this Agreement if such restrictions or conditions
apply only to the property or assets securing such Indebtedness, and
(C) clause (i) of the foregoing shall not apply to customary provisions in
leases and other contracts restricting the assignment thereof.

     (m) Nature of Business.  Engage to any material extent in any
business other than businesses of the type conducted by the Companies on the
Closing Date and businesses reasonably related thereto.

                         ARTICLE VI
                          DEFAULT

     As used herein, the term "Default" means the occurrence of any one or
more of the following events:

     Section 6.1 Payment of Obligations.

The failure of Borrower to pay to any Agent or any Bank, as required, when due
the Principal Obligation, or interest thereon, or any part thereof, or any
Reimbursement Obligation or other amount owing under this Agreement or any of
the Loan Papers (including without limitation Subsections 2,4, 2.7(a), 2.11,
2.14(d) and 5.1(j)), and such failure continues for a period of five (5)
Business Days after the due date.

     Section 6.2 Covenants.

     (a) A breach of any of the covenants in Subsections 5.1(a), 5.1(b),
5.1(e), 5.1(f), 5.1(i), 5.1(k), 5.1(l), 5.1(m), 5.1(n), 5.1(q), 5.1(s),
5.1(t), 5.1(u) or Section 5.2.

     (b) The failure of Borrower or any other Company to punctually and
properly observe, keep and perform each of its covenants and agreements in
Subsections 5.1(c), 5.1(d), 5.1(g), 5.1(h), or 5.1(r) and such failure
continues for a period of ten (10) days after the discovery of the breach by
a Company or after notice from Administrative Agent or any Bank.

     (c) The failure of Borrower or any other Company punctually and
properly to observe, keep and perform each of its covenants and agreements
(other than the covenants to pay the Principal Obligation, and interest
thereon, the commitment fee, the Reimbursement Obligations and other amounts,
and the covenants specified in Subsections 6.2(a) and 6.2(b) contained herein
or in any of the other Loan Papers, and such failure continues for a period
of thirty (30) days after the discovery of the breach by a Company or after
Administrative Agent notifies Borrower of the breach.

     Section 6.3 Misrepresentation.

The discovery by Administrative Agent or any Bank that any statement,
representation or warranty in this Agreement, any other Loan Paper or in any
writing ever delivered to Administrative Agent or any Bank pursuant to the
provisions hereof, is false, misleading, or erroneous in any material respect,
and the reason giving rise to such situation is not corrected to the
satisfaction of the Banks within thirty (30) days after notice thereof has been
given by Administrative Agent to Borrower.

     Section 6.4 Voluntary Debtor Relief.

Borrower or any other Company shall (i) have entered voluntarily against it an
order for relief under any Debtor Relief Laws, (ii) execute an assignment for
the benefit of creditors, or (iii) not pay, or admit in writing its inability
to pay, its debts generally as they become due, or (iv) apply for or consent to
the appointment of a receiver, trustee, custodian or liquidator of it, or of
all or a substantial part of its assets, or (v) file a voluntary petition in
bankruptcy or a petition or answer seeking reorganization or an arrangement
with creditors or seeking to take advantage of, or any other relief under,
any Debtor Relief Laws, or (vi) file an answer admitting the material
allegations of, or consenting to, or default in, a petition filed against it
in any Debtor Relief Laws proceeding, or (vii) institute or voluntarily be or
become a party to any other judicial proceedings intended to effect a
discharge of its debts, in whole or in part, or a postponement of the
maturity or the collection thereof, or a suspension of any of the remedial
rights of Bank granted in this Agreement or under any Law.

     Section 6.5 Involuntary Debtor Relief.

An order, judgment or decree shall be entered by any court of competent
jurisdiction approving a petition seeking reorganization of Borrower or any
other Company, or appointing a receiver, trustee, custodian or liquidator of
Borrower or any other Company, or of all or any substantial part of the assets
of Borrower or any other Company, and such order, judgment or decree is not
appealed from within the time allowed by Law, with a stay of proceedings or
supersedes, or, if appealed from in the manner aforesaid, when such order,
judgment or decree becomes final, and in any event, if and when such
reorganization, receivership, trusteeship, custodianship or liquidation
proceedings shall have been in force for sixty (60) days.

     Section 6.6 Judgments.

Any of the Companies fails to pay any money judgment or judgments against it
in an amount greater than $100,000 in the aggregate at least ten (10) days
prior to the date on which any of the assets of any of the Companies may be
lawfully sold to satisfy such judgment.

     Section 6.7 Attachment.

The failure to have discharged within a period of thirty (30) days after the
commencement thereof any attachment, sequestration or similar proceedings
against any of the assets of Borrower or any other Company having an aggregate
fair market value of $100,000 or more.

        Section 6.8 Default of Other Debt.

The default under any promissory note or other evidence of Indebtedness in an
amount equal to or greater than $500,000 executed by Borrower or any other
Company, or the default by any obligee under any Indebtedness or any other
obligation in an amount equal to or greater than $500,000 under any credit or
other agreement under which Borrower or any other Company is an obligor.

     Section 6.9 Other Agreements.

The occurrence of any event which would constitute, or with notice or lapse of
time or both could constitute, a default under any chattel mortgage,
assignment, security agreement, deed of trust, mortgage or other agreement
delivered to Administrative Agent, Collateral Agent  or any Bank or under any
Loan Paper.

Section 6.10 Change in Control.

The occurrence of any Change in Control.

                              ARTICLE VII
                                REMEDIES

     If a Default occurs and is continuing, Administrative Agent may, at its
election, and, at the request of the Required Banks, Administrative Agent
shall do any one or more of the following:

     Section 7.1 Acceleration.

Declare the entire unpaid balance of the Obligations and all other Indebtedness
of any one or more of Borrower or the other Companies to the Banks and the
Agents, or any of them, or any part thereof, immediately due and payable,
whereupon it shall be due and payable.

     Section 7.2 Loans and Letters of Credit.

Refuse to make additional Loans or issue additional Letters of Credit, and
thereafter the Banks shall have no obligation whatsoever to make additional
Loans or issue additional Letters of Credit. If any Bank or the Issuing Bank
refuses to make additional Loans or issue additional Letters of Credit, all
duties and obligations of Borrower and the other Companies, and all rights
and powers of Administrative Agent and the Banks, under this Agreement shall
continue in full force and effect until the full and final payment and
performance of the Obligations.

     Section 7.3 Judgment.

Reduce any claim to judgment.

     Section 7.4 Rights.

Exercise any and all rights and remedies which Administrative Agent, the
Issuing Bank or any Bank may have under any Loan Paper, at Law, or in equity,
or otherwise.

     Section 7.5 Default with Respect to Base Rate Loans.

If a Default under the Agreement shall occur and the same shall have been
declared by Administrative Agent, then Borrower shall immediately prepay
the outstanding Base Rate Loans and all interest accrued thereon if and to
the extent the same is then due and payable.

     Section 7.6 Default with Respect to LIBOR Loans.

If a Default under this Agreement shall occur and the same shall have been
declared by Administrative Agent, then Borrower shall immediately prepay the
outstanding LIBOR Loans and all interest accrued thereon and all losses and
expenses in connection with such prepayment pursuant to Section 2.26 if and
to the extent the same is then due and payable.

     Section 7.7 Default with Respect to Letters of Credit.

If a Default under the Agreement shall occur and the same shall have been
declared by Administrative Agent, then, upon the request of Administrative
Agent, Borrower shall be required to deposit immediately with Administrative
Agent, in immediately available funds, an amount equal to (i) the aggregate
amount of all then outstanding Letters of Credit; plus (ii) the aggregate
amount of all other sums due and payable under any of the Loan Papers
regarding the Letters of Credit (the "Deposit"), Borrower's obligation to pay
the Deposit to be absolute and unconditional, the Deposit to be deposited in
a special interest bearing account with Administrative Agent to ensure
reimbursement of any drawings under such Letters of Credit and payment of
all other amounts due and payable under any of the Loan Papers regarding the
Letters of Credit.

     Section 7.8 Automatic Acceleration Due to Certain Defaults.

Notwithstanding anything to the contrary contained herein, if a Default
referred to in Section 6.4 or Section 6.5 occurs and is continuing, then the
entire unpaid balance of the Obligations and all other Indebtedness of any
one or more of Borrower or the other Companies to the Banks and the Agents,
or any of them, shall immediately, and concurrently with the occurrence of
such Default, become due and payable in full without any further action or
notification of any kind required of any of the Agents or any of the Banks,
including, without limitation, presentment, demand, protest or notice of
protest, dishonor, intention to accelerate or acceleration, all of which are
expressly hereby waived by Borrower and the other Companies.

                         ARTICLE VIII
                            AGENTS

Section 8.1 Administrative Agent Appointment and Authorization;
Administration; Duties.

     (a) The general administration of the Loan Papers and any other
documents contemplated by this Agreement shall be by Comerica or its
designees, and each Bank hereby appoints Comerica as its agent hereunder and
under the other Loan Papers with such powers as are specifically delegated to
the Administrative Agent by the terms of the Loan Papers, together with such
other powers as are reasonably incidental thereto.  Administrative Agent
shall not be required to take any action with respect to any Default except
as directed by the Required Banks. In the event the Required Banks so direct
Administrative Agent to take any action hereunder, Administrative Agent
agrees to commence taking such action within a reasonable period of time and
to diligently pursue such action or to submit its resignation pursuant to
Section 8.9.  Except as otherwise provided herein or otherwise agreed to by
the Banks and Administrative Agent, each of the Banks hereby irrevocably
authorizes Administrative Agent, at its discretion, to take or refrain from
taking such actions as Administrative Agent on its behalf and to exercise or
refrain from exercising such powers under the Loan Papers and any other
documents contemplated by this Agreement as are delegated by the terms hereof
or thereof, as appropriate, together with all powers reasonably incidental
thereto. Notwithstanding the foregoing or any term or provision of this
Agreement, Administrative Agent shall have no duties or responsibilities
except as expressly set forth in this Agreement or the other Loan Papers.

     (b) Each Bank irrevocably appoints and authorizes Administrative
Agent to hold the Collateral, other than the Vehicle Collateral, and enforce
the Liens granted to the Banks as security for the Obligations and to take
such action as Administrative Agent on its behalf and to exercise such powers
under this Agreement and the other Loan Papers as are delegated to
Administrative Agent by the terms hereof or thereof, together with all such
powers as are reasonably incidental thereto, provided, however, that, as
between and among the Banks, Administrative Agent will not prosecute, settle
or compromise any claim against Borrower or any other Company or release or
institute enforcement or foreclosure proceedings against any Collateral or
guaranty securing the Obligations, except with the consent of the Required
Banks. Without limiting the generality of the foregoing, each Bank authorizes
Administrative Agent to (i) enter into any Loan Papers securing payment of
the Obligations in the capacity of agent for and on behalf of the Banks and
(ii) to administer all of the Collateral (other than the Vehicle Collateral)
and to enforce the interests of the Banks therein in accordance with the Loan
Papers. Any action for enforcement of the interests of the Banks under the
Loan Papers shall be taken either as Administrative Agent for the Banks or
directly in the respective names of the Banks, as counsel to Administrative
Agent may at the time advise. Subject to Section 9.21, the Banks consent and
agree that any action taken by Administrative Agent or with the consent or at
the direction of the Required Banks as provided herein shall be taken for and
on behalf of all Banks, including those who may not have so consented or
directed, in order to protect or enforce the Liens securing the Obligations;
provided that any Bank may direct Administrative Agent not to act for or on
its behalf in any such proceeding if such Bank executes in favor of
Administrative Agent a release of its rights to share in the benefits of any
such action and a release of its legal and beneficial interest in the Lien
created by the Loan Papers on the Collateral (other than the Vehicle
Collateral) which is the subject of such action. Each Bank, Borrower and the
other Companies agree that Administrative Agent is not a fiduciary for the
Banks or for Borrower or any other Company but simply is acting in the
capacity described herein to alleviate administrative burdens for all parties
hereto and that Administrative Agent has no duties or responsibilities to the
Banks, Borrower or any other Company except those expressly set forth herein.

     Section 8.2 Collateral Agent Appointment and Authorization;
Administration; Duties.

     (a) If Vehicles are pledged as Collateral from time to time, the
general administration of the Vehicle Collateral, the notation of Liens on
applicable certificates of title and any other documents contemplated by that
pledge shall be by LaSalle, and each Bank hereby appoints LaSalle as its
agent with respect to the Vehicle Collateral hereunder and under the other
Loan Papers with such powers as are specifically delegated to the Collateral
Agent by the terms of the Loan Papers, together with such other powers as are
reasonably incidental thereto.  Collateral Agent shall not be required to
take any action with respect to any Default except as directed by the
Required Banks. In the event the Required Banks so direct Collateral Agent to
take any action hereunder, Collateral Agent agrees to commence taking such
action within a reasonable period of time and to diligently pursue such
action or to submit its resignation pursuant to Section 8.9.  Except as
otherwise provided herein or otherwise agreed to by the Banks and Collateral
Agent, each of the Banks hereby irrevocably authorizes Collateral Agent, at
its discretion, to take or refrain from taking such actions with respect to
the Vehicle Collateral as Collateral Agent on its behalf and to exercise or
refrain from exercising such powers under the Loan Papers and any other
documents contemplated by this Agreement as are delegated by the terms hereof
or thereof, as appropriate, together with all powers reasonably incidental
thereto with respect to the Vehicle Collateral. Notwithstanding the foregoing
or any term or provision of this Agreement, Collateral Agent shall have no
duties or responsibilities except as expressly set forth in this Agreement or
the other Loan Papers.

     (b) Each Bank irrevocably appoints and authorizes Collateral Agent to
hold the Vehicle Collateral (if any) and enforce the Liens (if any) granted
to the Banks as security for the Obligations and to take such action as
Collateral Agent on its behalf and to exercise such powers under this
Agreement and the other Loan Papers as are delegated to Collateral Agent by
the terms hereof or thereof, together with all such powers as are reasonably
incidental thereto, provided, however, that, as between and among the Banks,
Collateral Agent will not prosecute, settle or compromise any claim against
Borrower or any other Company or release or institute enforcement or
foreclosure proceedings against any Vehicle Collateral, except with the
consent of the Required Banks. Without limiting the generality of the
foregoing, each Bank authorizes Collateral Agent to (i) enter into any Loan
Papers concerning the Vehicle Collateral securing payment of the Obligations
in the capacity of agent for and on behalf of the Banks and (ii) to
administer all of the Vehicle Collateral and to enforce the interests of the
Banks therein in accordance with the Loan Papers. Any action for enforcement
of the interests of the Banks under the Loan Papers shall be taken either as
Collateral Agent for the Banks or directly in the respective names of the
Banks, as counsel to Collateral Agent may at the time advise. Subject to
Section 9.21, the Banks consent and agree that any action taken by Collateral
Agent or with the consent or at the direction of the Required Banks as
provided herein shall be taken for and on behalf of all Banks, including
those who may not have so consented or directed, in order to protect or
enforce the Liens securing the Obligations; provided that any Bank may direct
Collateral Agent not to act for or on its behalf in any such proceeding if
such Bank executes in favor of Collateral Agent a release of its rights to
share in the benefits of any such action and a release of its legal and
beneficial interest in the Lien created by the Loan Papers on the Vehicle
Collateral which is the subject of such action. Each Bank, Borrower and the
other Companies agree that Collateral Agent is not a fiduciary for the Banks
or for Borrower or any other Company but simply is acting in the capacity
described herein to alleviate administrative burdens for all parties hereto
and that Collateral Agent has no duties or responsibilities to the Banks,
Borrower or any other Company except those expressly set forth herein.

     Section 8.3 Advances and Payments.

On the date of each Advance, Administrative Agent shall be authorized, but
not obligated, to advance, for the account of each of the Banks making such
Advance, the amount of the Advance to be made by it in accordance with its
Commitment hereunder if and  to the extent that such Bank does not make such
amount timely available to Administrative Agent for advance to Borrower
pursuant to this Agreement. Each of the Banks agrees to immediately reimburse
Administrative Agent in immediately available funds for any amount so advanced
on its behalf by Administrative Agent. If any such reimbursement is not made in
immediately available funds on the same day on which Administrative Agent
shall have made any such amount available on behalf of any Bank, such Bank
shall pay interest to Administrative Agent at a rate per annum equal to
Administrative Agent's cost of obtaining overnight funds in the Dallas Federal
Funds market. All amounts to be paid to any of the Banks by Administrative
Agent shall be credited to the Banks, forthwith after collection by
Administrative Agent, in immediately available funds either by wire transfer
or deposit in such Bank's account with Administrative Agent, or as such Bank
and the Administrative Agent shall from time to time agree.

     Section 8.4 Sharing of Setoffs.

Each of the Banks agrees that if it shall, through the exercise of a right of
banker's lien, setoff or counterclaim against Borrower or any other Company,
including, but not limited to, a secured claim under the Bankruptcy Code or
other security interest arising with respect to or in lieu of such secured
claim and received by such Bank under any applicable bankruptcy, insolvency
or other similar Law, or otherwise obtain payment in respect of any obligation
owing to such Bank as a result of which the unpaid portion of its Loans is
proportionately less than the unpaid portion of the Loans of other Banks
(based upon the respective Commitment of the Banks), (i) it shall promptly
purchase at par (and shall be deemed to have thereupon purchased) from such
other Banks a participation in the Loans of such other Banks, so that the
aggregate unpaid principal amount of each of the Banks' Loans shall be in the
same proportion to the aggregate unpaid principal amount of all Loans then
outstanding as the principal of its Loans prior to the obtaining of such
payment was to the principal amount of all Loans outstanding prior to the
obtaining of such payment, (ii) it shall pay interest calculated at the
Federal Funds Rate to such other Banks on the amount purchased from the date
it received such payment until the date of the purchase of such
participation; and (iii) such other adjustments shall be made from time to
time as shall be equitable to ensure that the Banks share such payment pro
rata. Notwithstanding anything to the contrary contained herein, if a Bank
shall obtain payment under any circumstances contemplated herein while any
Obligations shall remain outstanding, such Bank shall promptly turn over such
payment to Administrative Agent for distribution to the Banks on account of
the Obligations as provided herein. Borrower and the Companies expressly
consent to the foregoing arrangements and agree that any Bank or Banks
holding (or deemed to be holding) a participation in any of the Loans or
other Obligations may exercise any and all rights of banker's lien, setoff or
counterclaim with respect to any and all monies owing by Borrower or any
other Company to such Bank.

     Section 8.5 Liability of Agents.

     (a) Each Agent, when acting on behalf of the Banks, may execute any
of its duties under this Agreement by or through its officers, directors,
employees, attorneys or agents. All such officers, directors, employees,
attorneys and agents, when exercising the rights or performing the duties of
such Agent, shall be deemed to be included in the term "Agent."  Neither
Administrative Agent nor Collateral Agent nor their respective officers,
directors, employees, attorneys or agents shall be liable to the Banks or any
of them for any action taken or omitted to be taken in good faith, or be
responsible to the Banks or to any of them for the consequences of any
oversight or error of judgment, or for any loss, unless the same shall happen
through its gross negligence or willful misconduct.  Each Agent and its
officers, directors, employees, attorneys and agents shall in no event be
liable to any Bank for any action taken or omitted to be taken by it pursuant
to instructions received by it from such Bank or from the Required Banks or
in reliance upon the advice of counsel selected by it. Without limiting the
foregoing, neither Administrative Agent nor Collateral Agent nor any of their
respective officers, directors, employees, attorneys or agents shall be
responsible to any of the Banks for the due execution, validity, genuineness,
effectiveness, sufficiency or enforceability of, or for any statement,
warranty or representation in, or for the perfection of any Lien contemplated
by, this Agreement or any other Loan Paper, or shall be required to ascertain
or to make any inquiry concerning the performance or observance by Borrower
or any Company of any of the terms, conditions, covenants or agreements of
this Agreement or any other Loan Paper.

     (b) Neither Administrative Agent nor Collateral Agent nor any of
their respective officers, directors, employees, attorneys or agents shall
have any responsibility to Borrower or any other Company on account of the
failure or delay in performance or breach by any of the Banks, Borrower or
any other Company of any of their respective obligations under this Agreement
or any other Loan Paper.

     (c) Each Agent, as an agent hereunder, shall be entitled to rely on
any communication, instrument or document reasonably believed by it to be
genuine or correct and to have been signed or sent by a person or persons
believed by it to the proper person or persons, and it shall be entitled to
rely on advice of legal counsel, independent public accountants and other
professional advisers and experts selected by it.

Section 8.6 Reimbursement and Indemnification.

EACH OF THE BANKS AGREES (I) TO REIMBURSE ADMINISTRATIVE AGENT AND COLLATERAL
AGENT, IN ACCORDANCE WITH SUCH BANK'S PRO RATA SHARE, FOR (A) EXPENSES, (B)
INTERNAL CHARGES APPROVED BY THE REQUIRED BANKS OR (C) FEES INCURRED FOR THE
BENEFIT OF THE BANKS UNDER THE LOAN PAPERS, INCLUDING COUNSEL FEES AND
COMPENSATION OF REPRESENTATIVES AND EMPLOYEES PAID FOR SERVICES RENDERED ON
BEHALF OF THE BANKS, AND ANY OTHER EXPENSE INCURRED IN CONNECTION WITH THE
PREPARATION, EXECUTION, ADMINISTRATION, MONITORING OR ENFORCEMENT THEREOF,
(II) TO INDEMNIFY AND HOLD HARMLESS ADMINISTRATIVE AGENT AND COLLATERAL AGENT
AND ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, ATTORNEYS OR
ADMINISTRATIVE AGENTS, ON DEMAND, FROM AND AGAINST ANY AND ALL LIABILITIES,
OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS,
EXPENSES OR DISBURSEMENTS OF ANY KIND OR NATURE WHATSOEVER WHICH MAY BE
IMPOSED ON, INCURRED BY, OR ASSERTED AGAINST ANY OF THEM IN ANY WAY RELATING
TO OR ARISING OUT OF THIS AGREEMENT OR ANY OTHER LOAN PAPER OR ANY ACTION
TAKEN OR OMITTED BY IT OR ANY OF THEM UNDER THIS AGREEMENT OR ANY OTHER LOAN
PAPER (EXCEPT SUCH AS SHALL RESULT FROM SUCH INDEMNITEE'S OWN GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT) TO THE EXTENT NOT REIMBURSED BY BORROWER OR
THE OTHER COMPANIES AND (III) THAT ADMINISTRATIVE AGENT AND COLLATERAL AGENT
MAY OFFSET DISTRIBUTIONS OF PRINCIPAL, INTEREST AND FEES DUE TO A BANK BY THE
AMOUNT OF UNREIMBURSED AMOUNTS DUE AND OWING IN ACCORDANCE WITH THE
PROVISIONS OF THIS SECTION 8.6 IF SUCH BANK HAS NOT REIMBURSED OR INDEMNIFIED
ADMINISTRATIVE AGENT AND/OR COLLATERAL AGENT UPON A WRITTEN REQUEST BY SAID
AGENT FOR SUCH REIMBURSEMENT OR INDEMNIFICATION.

     Section 8.7 Rights of Administrative Agent and Collateral Agent.

It is understood and agreed that Administrative Agent and Collateral Agent
shall each have the same rights, powers and obligations hereunder (including
the right to give such instructions) as the other Banks and may exercise such
rights and powers, as well as its rights and powers under other agreements
and instruments to which it is or may be party, and engage in other
transactions with Borrower or any other Company, as though it were not the
Administrative Agent or the Collateral Agent under this Agreement.

     Section 8.8 Independent Investigation and Credit Decision by Banks.

Each Bank acknowledges and agrees that it has decided to enter into this
Agreement and to make extensions of credit hereunder based on its own
analysis of (i) the transactions contemplated hereby, (ii) the
creditworthiness of Borrower and the other Companies, (iii) this Agreement
and the other Loan Papers and (iv) the business, legal and other issues
relating thereto, and further acknowledges and agrees that Administrative
Agent and Collateral Agent shall bear no responsibility therefor. Each Bank
acknowledges and agrees that it will, independently and without reliance upon
Administrative Agent or Collateral Agent or any other Bank, continue to make
its own credit decisions and other decisions regarding the taking or not
taking of any action under this Agreement or the other Loan Papers.

     Section 8.9 Successor Agents.

Subject to the appointment and acceptance of a successor Agent as provided in
this Section, any Agent may resign at any time by giving notice thereof to the
Banks and Borrower.  Upon any such resignation, the Required Banks shall have
the right to appoint a successor Agent from among the Banks.  If no successor
Agent shall have been so appointed by the Required Banks and shall have
accepted such appointment within sixty (60) days after the retiring Agent's
giving of notice of resignation, the retiring Agent may, on behalf of the Banks
but with the consent of the Required Banks, which consent shall not be
unreasonably withheld, appoint a successor Agent, which shall be either a
Bank, or a commercial bank reasonably acceptable to Borrower (provided that
Borrower's approval shall not be required if any Default or Potential Default
exists) organized under the Laws of the United States of America or of any
State thereof.  If no such successor Agent is appointed due to a proposed
successor Agent's reasonable unacceptability to Borrower or due to the failure
of the Required Banks to consent to such proposed successor Agent, then said
Agent may appoint a successor Agent from among the Banks after consulting with
Borrower and the Banks.  Upon the acceptance of any appointment as an Agent
hereunder by a successor Agent, such successor Agent shall thereupon succeed
to and become vested with all the rights, powers, privileges and duties of
the retiring Agent, and the retiring Agent shall be discharged from its
duties and obligations under this Agreement. After any retiring Agent's
resignation hereunder as Agent, the applicable provisions of this Article
VIII and Section 5.1(l) shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was an Agent under this Agreement.

     Section 8.10 Syndication Agent.

The Syndication Agent shall have no duties or responsibilities under this
Agreement or the other Loan Papers or otherwise except in its role as a Bank;
provided, however, that in the event that the Syndication Agent is also the
Collateral Agent and/or the Administrative Agent, the provisions of this
Section 8.10 shall not affect or limit in any way said Bank's duties and
responsibilities as Collateral Agent and/or Administrative Agent hereunder.

                              ARTICLE IX
                             MISCELLANEOUS

     Section 9.1 Performance by Agents and the Banks.

Should any covenant, duty or agreement of Borrower or any other Company fail
to be performed in accordance with the terms of the Loan Papers, Administrative
Agent, Collateral Agent or any Bank may, at its option, perform, or attempt to
perform, such covenant, duty or agreement on behalf of any of the Companies.
In such event, Borrower shall, at the request of Administrative Agent,
promptly pay any amount expended by Administrative Agent, Collateral Agent or
any such Bank in such performance or attempted performance to Administrative
Agent, at Administrative Agent's principal office, together with interest
thereon at the Highest Lawful Rate from the date of such expenditure by
Administrative Agent, Collateral Agent or any such Bank until paid; provided
that neither Administrative Agent nor Collateral Agent nor any Bank assumes
or shall ever, except by its express written consent, have any liability for
the performance of any duties or obligations of Borrower or any of the
Companies hereunder, or under or in connection with all or any part of the
Collateral. Also in such event, Administrative Agent shall use its reasonable
efforts to promptly notify Borrower of Borrower's or any other Company's
failure to so perform, but Administrative Agent's failure to do so shall not
result in any liability to it hereunder or affect the rights of
Administrative Agent, Collateral Agent or any Bank under this Section 9.1.

     Section 9.2 Waivers.

The acceptance by Administrative Agent or any Bank at any time and from time to
time of part payment on the Obligations shall not be deemed to be a waiver of
any Default then existing.  No waiver by Administrative Agent or any Bank of
any Default shall be deemed to be a waiver of any other then existing or
subsequent Default.  No delay or omission by Administrative Agent or any Bank
in exercising any Right under the Loan Papers shall impair such Right, or be
construed as a waiver thereof or any acquiescence therein, nor shall any single
or partial exercise thereof, or the exercise of any other Right, preclude
other or further exercise thereof, or the exercise of any other Right under
the Loan Papers or otherwise.

     Section 9.3 Cumulative Rights.

All rights hereunder shall be cumulative and in addition to all other rights
granted to Administrative Agent or any Bank at Law, or in equity, or otherwise,
and may be exercised from time to time, and as often as may be deemed
expedient by Administrative Agent or any Bank, whether or not the Obligations
are due and payable and whether or not Administrative Agent or any Bank has
taken other action in connection with the Loan Papers.

     Section 9.4 Other Rights and Remedies.

Administrative Agent and any Bank may, as between or among it and Borrower or
any other Company, at any time and from time to time, at its discretion and
with or without valuable consideration, allow substitution or withdrawal of
Collateral without impairing or diminishing the obligations of Borrower and
the other Companies under the Loan Papers. The exercise by Administrative
Agent or any Bank of any right or remedy conferred on it by any collateral
agreement, mortgage, deed of trust, chattel mortgage, assignment or other
security instrument shall be wholly discretionary with it, and the exercise
or failure to exercise any such right or remedy shall in no way impair or
diminish the obligation of Borrower and the other Companies under the Loan
Papers. Neither Administrative Agent nor any Bank shall be liable for failure
to use diligence in the collection of the Obligations or in preserving the
liability of any Person liable on the Obligations, and Borrower and each other
Company hereby waive notice of nonpayment and diligence in bringing suits
against any Person liable on the Obligations, or any part thereof. Borrower
and each other Company agree that Administrative Agent or any Bank, in its
discretion as between or among it and Borrower or any other Company, may:
(i) bring suit against Borrower and the other Companies jointly and severally
or against any one or more of them; (ii) compound or settle with any one or
more of Borrower and the other Companies for such consideration as it may
deem proper; and (iii) release one or more of Borrower and the other
Companies from liability under all or any part of the Obligations, and that
no such action shall impair the rights of Administrative Agent or any Bank to
collect the Obligations (or any part thereof) from Borrower or any other
Company not so sued, compounded or settled with, or released.

     Section 9.5 Expenditures of Administrative Agent and Banks.

Any sums spent by Administrative Agent or any Bank pursuant to the exercise of
any right provided herein shall become part of the Obligations and shall bear
interest at the Highest Lawful Rate from the date spent until the date repaid
by Borrower.

     Section 9.6 Form and Number of Documents.

Each opinion, certificate, resolution, deed of trust, mortgage, chattel
mortgage, security agreement, assignment, lease, agreement, document,
instrument or other writing or evidence to be furnished Administrative Agent
or any Bank under any provision of this Agreement must be in form and substance
and in such number of counterparts as may be satisfactory to Administrative
Agent and its counsel and the Banks.

     Section 9.7 Accounting Terms.

All accounting and financial terms used herein, and the compliance with each
covenant contained herein which relates to accounting or financial matters,
shall be determined in accordance with GAAP, except to the extent that a
deviation therefrom is expressly stated herein.

     Section 9.8 Money.

Unless stipulated otherwise, all references herein to "Dollars," "$," "money,"
"payments," or other similar financial or monetary terms, are references to
currency of the United States of America.

     Section 9.9 Headings.

The table of contents, headings, captions and arrangements used in any of the
Loan Papers are, unless specified otherwise, for convenience only and shall
not be deemed to limit, amplify or modify the terms of the Loan Papers, nor
affect the meaning thereof.

     Section 9.10 Articles, Sections, Exhibits and Schedules.

All references to "Article," "Articles," "Section," "Sections," "Subsection" or
"Subsections" contained herein are, unless specifically indicated otherwise,
references to articles, sections and subsections of this Agreement. All
references to "Exhibits" and "Schedules" contained herein are references to
exhibits or schedules, as the case may be, attached hereto, all of which are
made a part hereof for all purposes, the same as if set forth herein
verbatim, it being understood that if any exhibit or schedule attached
hereto, which is to be executed and delivered, contains blanks, the same
shall be completed correctly and in accordance with the terms and provisions
contained and as contemplated herein prior to or at the time of the execution
and delivery thereof.

     Section 9.11 Number and Gender of Words.

Whenever herein the singular number is used, the same shall include the plural
where appropriate, and words of any gender shall include each other gender
where appropriate.

     Section 9.12 Business Day.

Except as may otherwise be expressly provided herein to the contrary, where a
payment of principal or interest on the Obligations is due on a day other
than a Business Day, Borrower shall be entitled to delay such payment until
the next succeeding Business Day, but interest shall continue to accrue until
the payment is, in fact, made.

     Section 9.13 Notices.

All notices, requests and other communications to any party hereunder and
under the other Loan Papers (except as may be expressly stated to the contrary
therein) shall be in writing and shall be given to such party at its address
set forth on the signature pages hereof or such other address as such party may
hereafter specify for the purpose of notice to the other party. Each such
notice, request or other communication shall be effective (i) if given by
mail, forty-eight (48) hours after such communication is deposited in the mail
with first class postage prepaid, addressed as aforesaid or (ii) if given by
any other means, when delivered at the address specified in this Section;
provided that any communications to any Agent or any Bank shall not be deemed
effective until actually received by it.

     Section 9.14 Parties Bound.

This Agreement shall be binding upon, and inure to the benefit of,
Administrative Agent, the Banks, Borrower and the other Companies and their
respective successors and assigns; provided that Borrower and the other
Companies may not assign their rights or obligations under this Agreement
without the prior written consent of Administrative Agent and the Banks. Each
corporation, firm or other entity in which Borrower or any other Company
hereafter acquires or otherwise owns a direct or indirect controlling interest
(a "New Entity") shall automatically (unless otherwise agreed or determined
unilaterally by Administrative Agent and the Banks in writing) be and become
a "subsidiary," as that term is used in this Agreement, for all purposes,
contemporaneously with such acquisition. Borrower shall promptly, and in any
event within ten (10) days, after such acquisition, cause each New Entity to
execute and deliver to Administrative Agent a Guaranty Agreement and an
agreement in the form of Exhibit E (Agreement of New Entity) attached hereto.
Borrower may thereafter request the Administrative Agent to release such New
Entity from this Agreement, but each such release shall be wholly discretionary
with Administrative Agent and the Banks. If Administrative Agent does, however,
grant any such release or does not require such New Entity to execute and
deliver the aforesaid documents, such New Entity shall thereafter, for the
purposes of this Agreement, be treated as though it were not a Subsidiary
hereunder and not affiliated in any manner whatsoever with Borrower or any
other Company (except as may relate to such New Entity's status as an
"Affiliate" hereunder), except to the extent specifically stated in such
release or other agreement of Administrative Agent.

     Section 9.15 Exceptions to Covenants.

The Companies shall not be deemed to be permitted to take any action or fail to
take any action which is permitted or not prohibited by any of the covenants
contained herein if such action or omission would result in the breach of
any other covenant contained herein or in the other Loan Papers.

     Section 9.16 Successors and Assigns.

     (a) This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns.  Neither
Borrower nor any Company may assign or transfer any of its rights or
obligations hereunder without the prior written consent of the Administrative
Agent and all of the Banks.  Any Bank may sell participations to one or more
banks or other institutions in or to all or a portion of its rights and
obligations under the Loan Papers (including, without limitation, all or a
portion of its Commitment, the Loans owing to it and its interest in the
Letters of Credit which it has made or in which it has a participating
interest); provided, however, that (i) such Bank's obligations under the Loan
Papers (including, without limitation, its Commitment) shall remain
unchanged, (ii) such Bank shall remain solely responsible to Borrower for the
performance of such obligations, (iii) such Bank shall remain the holder of
its Notes and owner of its participation or other interests in Letter of
Credit Liabilities for all purposes of any Loan Paper, (iv) Borrower shall
continue to deal solely and directly with such Bank in connection with such
Bank's rights and obligations under the Loan Papers, (v) prior or concurrent
written consent of Administrative Agent and Collateral Agent shall be
required for any such participation, and (vi) such Bank shall not sell a
participation that conveys to the participant the right to vote or give or
withhold consents under any Loan Papers, other than the right to vote upon or
consent to (1) any increase of such Bank's Commitment, (2) any reduction of
the principal amount of, or interest to be paid on, the Loans or other
Obligations of such Bank, (3) any reduction of any commitment fee, letter of
credit fee, or other amount payable to such Bank under any Loan Paper, or (4)
any postponement of any date for the payment of any amount payable in respect
of the Loans or other Obligations of such Bank.

     (b) Any Bank (the "Assigning Bank") may at any time assign to one or
more commercial banks, savings and loan association, savings bank, finance
company, insurance company, pension fund, mutual fund, or other financial
institution (whether a corporation, partnership, or other entity) (herein an
"Eligible Assignee") all, or a proportionate part of all, of its rights and
obligations under the Loan Papers (including, without limitation, its
obligations under Section 2.1 and its Loans and participation interests)
(each an "Assignee"); provided, however, that (i) each such assignment shall
be of a consistent, and not a varying, percentage of all of the Assigning
Bank's rights and obligations under the Loan Papers, (ii) except in the case
of an assignment of all of a Bank's rights and obligations under the Loan
Papers, the amount of the Commitment of the assigning Bank being assigned
pursuant to each assignment (determined as of the date of the Assignment and
Acceptance with respect to such assignment) shall in no event be less than
Five Million Dollars ($5,000,000), (iii) the parties to each such assignment
shall execute and deliver to the Administrative Agent for its acceptance and
recording in the Register (as defined below), an Assignment and Acceptance,
together with the Notes subject to such assignment, and a processing and
recordation fee of up to $5,000 payable by the assignor or assignee (and not
any Company); (iv) prior or concurrent written consent of Administrative
Agent and Collateral Agent shall be required for any such assignment; and
(v) prior or concurrent written consent of Parent shall be required for any
such assignment, which consent of Parent shall not be unreasonably withheld,
with such consents to be evidenced by the Parent's and, the Administrative
Agent's and the Collateral Agent's execution of the Assignment and
Acceptance, provided that any consent of the Parent otherwise required by
this Subsection shall not be required if a Default or Potential Default has
occurred and is continuing.  Upon such execution, delivery, acceptance, and
recording, from and after the effective date specified in each Assignment and
Acceptance, which effective date shall be at least five (5) Business Days
after the execution thereof, or, if so specified in such Assignment and
Acceptance, the date of acceptance thereof by Administrative Agent, (x) the
Assignee thereunder shall be a party hereto as a "Bank" and, to the extent
that rights and obligations hereunder have been assigned to it pursuant to
such Assignment and Acceptance, have the rights and obligations of a Bank
hereunder and under the Loan Papers and (y) the Assigning Bank shall, to the
extent that rights and obligations hereunder have been assigned by it
pursuant to such Assignment and Acceptance, relinquish its rights and be
released from its obligations under the Loan Papers (and, in the case of an
Assignment and Acceptance covering all or the remaining portion of a Bank's
rights and obligations under the Loan Papers, such Bank shall cease to be a
party thereto).

     (c) Administrative Agent shall maintain a copy of each Assignment and
Acceptance delivered to and accepted by it and a register for the recordation
of the names and addresses of the Banks and the Commitments of, and principal
amount of the Loans owing to and Letters of Credit participated in by, each
Bank from time to time (the "Register").  The entries in the Register shall
be conclusive and binding for all purposes, absent manifest error, and
Borrower, Administrative Agent, and the Banks may treat each Person whose
name is recorded in the Register as a Bank hereunder for all purposes under
the Loan Papers.  The Register shall be available for inspection by Parent or
any Bank at any reasonable time and from time to time upon reasonable prior
notice.

     (d) Upon its receipt of an Assignment and Acceptance executed by an
Assigning Bank and Assignee representing that it is an Eligible Assignee,
together with any Notes subject to such assignment, Administrative Agent
shall, if such Assignment and Acceptance has been completed and is in
substantially the form of Exhibit F hereto, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register,
and (iii) give prompt written notice thereof to Parent.  Within five (5)
Business Days after its receipt of such notice Borrower, at their expense,
shall execute and deliver to Administrative Agent in exchange for the
surrendered Notes (including (if applicable) new Revolving Credit Notes to
the order of such Eligible Assignee in an amount equal to the Commitment
assumed by it pursuant to such Assignment and Acceptance and, if the
Assigning Bank has retained a Commitment, a Revolving Credit Note to the
order of the Assigning Bank in an amount equal to the Commitment retained by
it hereunder (each such promissory note shall constitute a "Revolving Credit
Note" for purposes of the Loan Papers).  Such new Revolving Credit Notes
shall be in an aggregate principal amount of the surrendered Revolving Credit
Note, shall be dated the effective date of such Assignment and Acceptance,
and shall otherwise be in substantially the form of Exhibit C hereto.

     (e) Any Bank may, in connection with any assignment or participation
or proposed assignment or participation pursuant to this Section, disclose to
the assignee or participant or proposed assignee or participant, any
information relating to Borrower  and the Companies furnished to such Bank by
or on behalf of such Company.

     (f) Any Bank may at any time pledge or assign a security interest in
all or any portion of its rights under this Agreement to secure obligations
of such Bank, including any pledge or assignment to secure obligations to a
Federal Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest; provided that no such pledge or assignment
of a security interest shall release a Bank from any of its obligations
hereunder or substitute any such pledgee or assignee for such Bank as a party
hereto.

     Section 9.17 Effect of Investigations.

All covenants, agreements, undertakings, representations and warranties made
in any of the Loan Papers shall survive all closings under the Loan Papers and,
except as otherwise indicated, shall not be affected by any investigation made
by any party.

     Section 9.18 GOVERNING LAW; VENUE; SERVICE OF PROCESS.

     (a) THE LOAN PAPERS ARE BEING EXECUTED AND DELIVERED, AND ARE
INTENDED TO BE PERFORMED, IN THE STATE OF TEXAS, AND THE LAWS OF SUCH STATE
SHALL GOVERN THE VALIDITY, CONSTRUCTION, ENFORCEMENT AND INTERPRETATION OF
THE LOAN PAPERS, EXCEPT TO THE EXTENT OTHERWISE SPECIFIED IN ANY OF THE LOAN
PAPERS.

     (b) CHAPTER 346 OF THE TEXAS FINANCE CODE SHALL NOT APPLY TO THE
REVOLVING CREDIT LOANS.

     (c) ANY ACTION OR PROCEEDING AGAINST ANY COMPANY UNDER OR IN
CONNECTION WITH ANY OF THE LOAN PAPERS MAY BE BROUGHT IN ANY STATE OR FEDERAL
COURT IN DALLAS COUNTY, TEXAS.  EACH COMPANY HEREBY IRREVOCABLY (I) SUBMITS
TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURTS, AND (II) WAIVES ANY
OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH ACTION OR
PROCEEDING BROUGHT IN ANY SUCH COURT OR THAT ANY SUCH COURT IS AN
INCONVENIENT FORUM.  EACH  COMPANY AGREES THAT SERVICE OF PROCESS UPON IT MAY
BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, AT ITS
ADDRESS SPECIFIED OR DETERMINED IN ACCORDANCE WITH THE PROVISIONS OF
SECTION 9.13.  NOTHING HEREIN OR IN ANY OF THE OTHER LOAN PAPERS SHALL AFFECT
THE RIGHT OF THE ADMINISTRATIVE AGENT, THE COLLATERAL AGENT, THE ISSUING BANK
OR ANY BANK TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL
LIMIT THE RIGHT OF THE ADMINISTRATIVE AGENT, THE COLLATERAL BANK, THE ISSUING
BANK OR ANY BANK TO BRING ANY ACTION OR PROCEEDING AGAINST THE BORROWER OR
WITH RESPECT TO ANY OF ITS RESPECTIVE PROPERTY IN COURTS IN OTHER
JURISDICTIONS.  ANY ACTION OR PROCEEDING BY ANY COMPANY AGAINST THE
ADMINISTRATIVE AGENT, THE COLLATERAL AGENT, THE ISSUING BANK, OR ANY BANK
SHALL BE BROUGHT ONLY IN A COURT LOCATED IN DALLAS COUNTY, TEXAS.

     Section 9.19 Maximum Interest Rate.

     (a) No interest rate specified in this Agreement or any other Loan
Paper shall at any time exceed the Highest Lawful Rate.  If at any time the
interest rate (the "Contract Rate") for any Obligation shall exceed the
Highest Lawful Rate, thereby causing the interest accruing on such Obligation
to be limited to the Highest Lawful Rate, then any subsequent reduction in
the Contract Rate for such Obligation shall not reduce the rate of interest
on such Obligation below the Highest Lawful Rate until the aggregate amount
of interest accrued on such Obligation equals the aggregate amount of
interest which would have accrued on such Obligation if the Contract Rate for
such Obligation had at all times been in effect.

     (b) Notwithstanding anything to the contrary contained in this
Agreement or the other Loan Papers, none of the terms and provisions of this
Agreement or the other Loan Papers shall ever be construed to create a
contract or obligation to pay interest at a rate in excess of the Highest
Lawful Rate; and neither any Agent nor any Bank shall ever charge, receive,
take, collect, reserve or apply, as interest on the Obligations, any amount
in excess of the Highest Lawful Rate.  The parties hereto agree that any
interest, charge, fee, expense or other obligation provided for in this
Agreement or in the other Loan Papers which constitutes interest under
applicable Law shall be, ipso facto and under any and all circumstances,
limited or reduced to an amount equal to the lesser of (i) the amount of such
interest, charge, fee, expense or other obligation that would be payable in
the absence of this Section 9.19(b) or (ii) an amount, which when added to
all other interest payable under this Agreement and the other Loan Papers,
equals the Highest Lawful Rate.  If, notwithstanding the foregoing, any Agent
or any Bank ever contracts for, charges, receives, takes, collects, reserves
or applies as interest any amount in excess of the Highest Lawful Rate, such
amount which would be deemed excessive interest shall be deemed a partial
payment or prepayment of principal of the Obligations and treated hereunder
as such; and if the Obligations, or applicable portions thereof, are paid in
full, any remaining excess shall promptly be paid to the Borrower, Parent or
Subsidiary (as appropriate).  In determining whether the interest paid or
payable, under any specific contingency, exceeds the Highest Lawful Rate, the
parties hereto shall, to the maximum extent permitted by applicable Law, (i)
characterize any nonprincipal payment as an expense, fee or premium rather
than as interest, (ii) exclude voluntary prepayments and the effects thereof,
and (iii) amortize, prorate, allocate and spread in equal or unequal parts
the total amount of interest throughout the entire contemplated term of the
Obligations, or applicable portions thereof, so that the interest rate does
not exceed the Highest Lawful Rate at any time during the term of the
Obligations; provided that, if the unpaid principal balance is paid and
performed in full prior to the end of the full contemplated term thereof, and
if the interest received for the actual period of existence thereof exceeds
the Highest Lawful Rate, the Agents and/or the Banks, as appropriate, shall
refund to the applicable Person the amount of such excess and, in such event,
the Agents and the Banks shall not be subject to any penalties provided by
any Laws for contracting for, charging, receiving, taking, collecting,
reserving or applying interest in excess of the Highest Lawful Rate.

     Section 9.20 Invalid Provisions.

If any provision of any of the Loan Papers is held to be illegal, invalid or
unenforceable under present or future Laws effective during the term thereof,
such provision shall be fully severable; the appropriate Loan Papers shall be
construed and enforced as if such illegal, invalid or unenforceable provision
had never comprised a part thereof; and the remaining provisions thereof shall
remain in full force and effect and shall not be affected by the illegal,
invalid or unenforceable provision or by its severance therefrom. Furthermore,
in lieu of such illegal, invalid or unenforceable provision, there shall be
added automatically as a part of such Loan Papers a provision as similar in
terms to such illegal, invalid or unenforceable provision as may be possible
and be legal, valid and enforceable.

     Section 9.21 Entirety and Amendments.

This Agreement embodies the entire agreement between or among the parties
relating to the subject matter hereof, supersedes all prior term sheets,
discussions, agreements and understandings, if any, relating to the subject
matter hereof, and, except as provided below, neither this Agreement nor any
provision hereof or of any of the Loan Papers may be waived, amended or
modified except by an agreement in writing executed jointly by any authorized
officer of each Company party thereto and Required Banks, and the same may be
supplemented only by documents delivered or to be delivered in accordance with
the express terms hereof, provided however, that, without the prior written
consent of each of the Banks, no such agreement shall (i) reduce the principal
amount of, or extend the maturity of or any date for the payment of any
principal of or interest on any Loan or Letter of Credit, or waive or excuse
any such payment or any part thereof, or reduce the rate of interest on any
Loan or Letter of Credit (other than any such reduction in the rate of interest
resulting from a change in the Base Rate in accordance with the definition of
such term), (iii) reduce or increase the Commitment of any Bank, (iv) change or
amend the provisions of this Section, or the definition of the
"Required Banks", (v) waive any condition precedent to the making of any Loan
or the issuance of any Letter of Credit, (vi) release any Guaranty Agreement or
any Collateral securing any of the Obligations, except releases expressly
provided for or permitted by this Agreement, or (vii) reduce any fee payable
to any Bank; provided, further, that no such agreement shall amend, modify or
otherwise affect the rights or duties of any Agent hereunder without the
prior written consent of such Agent.  Each Bank and each holder of a Note
shall be bound by any waiver, amendment or modification authorized by this
Section regardless of whether its Note shall have been marked to make
reference thereto, and any consent by any Bank or holder of a Note pursuant
to this Section shall bind any person subsequently acquiring a Note from it,
whether or not such Note shall have been so marked.

     Section 9.22 Survival.

All representations and warranties of Borrower and the other Companies
contained in this Agreement shall survive the making of the Loans, Advances
and Letters of Credit herein contemplated.  The provisions of Sections 2.19,
2.22, 2.26 and 5.1(j) and Article VIII shall survive and remain in full force
and effect regardless of the consummation of the transactions contemplated
hereby, the repayment of the Loans, the  expiration or termination of the
Letters of Credit and the Commitments or the termination of this Agreement or
any provision hereof.

     Section 9.23 Setoff.

In addition to, and without limitation of, any rights of Administrative Agent
and the Banks under applicable Law (including other rights of setoff), if
Borrower or any other Company becomes insolvent or any Default occurs,
Administrative Agent and the Banks may apply any and all money or property
held for or owed to any of the Companies (including without limitation any and
all deposits, whether time or demand, provisional or final) against all or any
portion of the Obligations irrespective of whether or not any demand or
acceleration shall have been made under this Agreement.

     Section 9.24 Multiple Counterparts.

This Agreement may be executed in a number of identical counterparts, each of
which, for all purposes, is to be deemed an original and all of which
constitute, collectively, one agreement; however, in making proof of this
Agreement, it shall not be necessary to produce or account for more than one
such counterpart.

     Section 9.25 Term of Agreement.

This Agreement shall continue until the otes and all other Obligations shall
have each been paid and performed in full and until all other liabilities and
obligations of Borrower and the other Companies under this Agreement and the
other Loan Papers shall have been fully satisfied and the Banks shall have no
further obligation to make Loans or issue Letters of Credit hereunder.

     Section 9.26 Limitation of Liability.

No Agent, Bank, or any Affiliate, officer, director, employee, attorney, or
agent thereof shall have any liability with respect to, and each Company (by
its execution or ratification of a Guaranty Agreement or an Agreement of New
Entity) hereby waives, releases, and agrees not to sue any of them upon, any
claim for any special, indirect, incidental, or consequential damages suffered
or incurred by any Company in connection with, arising out of, or in any way
related to, this Agreement or any of the other Loan Papers, or any of the
transactions contemplated by this Agreement or any of the other Loan Papers.
Each Company (by its execution or ratification of a Guaranty Agreement or an
Agreement of New Entity) hereby waives, releases, and agrees not to sue any
Agent or any Bank or any of their respective Affiliates, officers, directors,
employees, attorneys, or agents for punitive damages in respect of any claim in
connection with, arising out of, or in any way related to, this Agreement or
any of the other Loan Papers, or any of the transactions contemplated by this
Agreement or any of the other Loan Papers.

     Section 9.27 No Fiduciary Relationship.

The relationship between each Company and each Agent and Bank with respect to
the Loan Papers and the transactions contemplated hereby and thereby is solely
that of debtor and creditor, and neither any Agent nor any Bank has any
fiduciary or other special relationship with any Company with respect to the
Loan Papers and such transactions, and no term or condition of any of the Loan
Papers shall be construed so as to deem the relationship between any Company
and any Bank with respect to the Loan Papers and such transactions to be other
than that of debtor and creditor.

     Section 9.28 Construction.

Each Company, each Agent and each Bank acknowledge that each of them has had
the benefit of legal counsel of its own choice and has been afforded an
opportunity to review this Agreement and the other Loan Papers with its legal
counsel and that this Agreement and the other Loan Papers shall be construed as
if jointly drafted by the parties hereto.

     Section 9.29 Waiver and Release.

Each Company hereby waives and releases all Agents and all Banks from any and
all claims or causes of action which any Company may own, hold or claim in
respect of any of them as of the date hereof.

     Section 9.30 NO ORAL AGREEMENTS.

THIS AGREEMENT, TOGETHER WITH THE OTHER LOAN PAPERS AS WRITTEN, REPRESENT THE
FINAL AGREEMENTS AMONG AGENTS, THE BANKS, BORROWER AND THE OTHER COMPANIES
AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
OR AMONG AGENTS AND BORROWER OR ANY OTHER COMPANY, OR BETWEEN OR AMONG ANY BANK
AND BORROWER OR ANY OTHER COMPANY.

     Section 9.31 Joint and Several Obligations.

Notwithstanding anything to the contrary contained herein or in any other Loan
Papers, the Companies are jointly and severally responsible for their
respective agreements, covenants, representations, warranties and obligations
contained and set forth in this Agreement or in any other Loan Paper to which
they are a party.

     Section 9.32 WAIVER OF JURY TRIAL.

EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY
OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.
[REMAINDER OF PAGE INTENTIONALLY BLANK]

     EXECUTED as of the day and year first herein stated.

                                   COMERICA BANK-TEXAS,
                                   as a Bank, as Issuing Bank
                                   and as Administrative Agent

                                   By: /s/Deorah T. Purvin, Vice President
                                       -----------------------------------
                                   Name:  Deborah T. Purvin
                                   Title: Vice President

                                   8828 Stemmons Freeway, Suite 441
                                   Dallas, Texas  75247
                                   Fax:  (214) 589-4403
                                   Attention:  Deborah T. Purvin

                                   Applicable Lending Office:

                                   8828 Stemmons Freeway, Suite 441
                                   Dallas, Texas  75247

                                   LASALLE BANK NATIONAL ASSOCIATION,
                                   as a Bank, as Collateral Agent and
                                   as Syndication Agent

                                   By: /s/ Craig Schuth
                                       ----------------------------------
                                   Name:  Craig Schuth
                                   Title: Corporate Banking Officer

                                   135 S. LaSalle Street, Suite 361
                                   Chicago, Illinois 60603
                                   Fax: (312) 904-2903
                                   Attention: Craig Schuth

                                   Applicable Lending Office:
                                   -------------------------

                                   135 S. LaSalle Street, Suite 361
                                   Chicago, Illinois  60603

                                   FFE TRANSPORTATION SERVICES, INC.

                                   By: /s/Thomas G. Yetter
                                       ----------------------------------
                                   Name:  T. G. Yetter
                                   Title: Vice President

                                   1145 Empire Central Place
                                   Dallas, Texas 75247
                                   Attention: President

                                   FROZEN FOOD EXPRESS INDUSTRIES,
                                   INC.

                                   By: /s/Thomas G. Yetter
                                      -----------------------------------
                                   Name:  T. G. Yetter
                                   Title: Treasurer

                                   1145 Empire Central Place
                                   Dallas, Texas 75247
                                   Attention: President

                                   FFE, INC.

                                   By: /s/Thomas G. Yetter
                                       ----------------------------------
                                   Name:  T. G. Yetter
                                   Title: Vice President

                                   1145 Empire Central Place
                                   Dallas, Texas 75247
                                   Attention: President

                                   CONWELL CORPORATION

                                   By: /s/Thomas G. Yetter
                                       -------------------
                                   Name:  T. G. Yetter
                                   Title: Vice President

                                   1145 Empire Central Place
                                   Dallas, Texas 75247
                                   Attention: President

                                   AIRPRO HOLDINGS, INC.

                                   By: /s/F. Dixon McElwee, Jr.
                                      -----------------------------------
                                   Name:  F. Dixon McElwee, Jr.
                                   Title: Senior Vice President

                                   1145 Empire Central Place
                                   Dallas, Texas 75247
                                   Attention: President

                                   LISA MOTOR LINES, INC.

                                   By: /s/Leonard W. Bartholomew
                                      -----------------------------------
                                   Name:  Leonard W. Bartholomew
                                   Title: Secretary

                                   1145 Empire Central Place
                                   Dallas, Texas 75247
                                   Attention: President

                                   FROZEN FOOD EXPRESS, INC.

                                   By: /s/F. Dixon McElwee, Jr.
                                       ----------------------------------
                                   Name:  F. Dixon McElwee, Jr.
                                   Title: Senior Vice President

                                   1145 Empire Central Place
                                   Dallas, Texas 75247
                                   Attention: President

                                   CONWELL CARTAGE, INC.

                                   By: /s/Leonard W. Bartholomew
                                      -----------------------------------
                                   Name:  Leonard W. Bartholomew
                                   Title: Secretary

                                   1145 Empire Central Place
                                   Dallas, Texas 75247
                                   Attention: President

                                   MIDDLETON TRANSPORTATION COMPANY

                                   By: /s/F. Dixon McElwee, Jr.
                                       ----------------------------------
                                   Name:  F. Dixon McElwee, Jr.
                                   Title: Senior Vice President

                                   1145 Empire Central Place
                                   Dallas, Texas 75247
                                   Attention: President

                                   COMPRESSORS PLUS, INC.

                                   By: /s/Leonard W. Bartholomew
                                       ----------------------------------
                                   Name:  Leonard W. Bartholomew
                                   Title: Secretary

                                   1145 Empire Central Place
                                   Dallas, Texas 75247
                                   Attention: President

                                   FFE LOGISTICS, INC.

                                   By: /s/Leonard W. Bartholomew
                                       ----------------------------------
                                   Name:  Leonard W. Bartholomew
                                   Title: Secretary

                                   1145 Empire Central Place
                                   Dallas, Texas 75247
                                   Attention: President<PAGE>

Exhibit 10.1

                              NET INDUSTRIAL LEASE

                   THIS LEASE IS BETWEEN SQUARE ONE PARTNERS,

                 A CALIFORNIA GENERAL PARTNERSHIP ("LANDLORD"),

                                       AND

                    LA JOLLA FRESH SQUEEZED COFFEE CO., INC.

                      A WASHINGTON CORPORATION ("TENANT"),

                          EXECUTED AS OF JUNE 30, 2002

<PAGE>

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

1.    LEASE OF PREMISES.......................................................3
2.    EXHIBITS AND ADDENDA....................................................3
3.    DEFINITIONS.............................................................3
4.    DELIVERY OF POSSESSION..................................................8
5.    ACCEPTANCE..............................................................9
6.    USE, LIMITATIONS........................................................9
7.    RENT...................................................................15
8.    LATE CHARGES...........................................................16
9.    SECURITY DEPOSIT.......................................................16
10.   RENTAL ABATEMENT.......................................................17
11.   OPERATING EXPENSES.....................................................17
12.   TAXES; ASSESSMENTS.....................................................19
13.   MAINTENANCE............................................................21
14.   UTILITIES AND SERVICES.................................................23
15.   INDEMNITY AND EXCULPATION..............................................25
16.   INSURANCE..............................................................26
17.   ALTERATIONS............................................................29
18.   MECHANICS' LIENS.......................................................30
19.   DESTRUCTION............................................................30
20.   CONDEMNATION...........................................................33
21.   ASSIGNMENT.............................................................35
22.   DEFAULT................................................................39
23.   ADVERTISING............................................................44
24.   NO PUBLIC DISCLOSURES..................................................44
25.   LANDLORD'S ENTRY ON PREMISES...........................................45
26.   OFFSET STATEMENT, ATTORNMENT, SUBORDINATION............................46
27.   NOTICE.................................................................47
28.   WAIVER.................................................................48
29.   SALE OR TRANSFER OF PREMISES...........................................48
30.   HOLDING OVER...........................................................49
31.   SURRENDER OF PREMISES..................................................49
32.   ABANDONMENT............................................................50
33.   ATTORNEYS' FEES........................................................50
34.   ACCESS; CHANGES IN BUILDING FACILITIES; NAME...........................50
35.   QUIET ENJOYMENT........................................................51
36.   FORCE MAJEUR...........................................................51
37.   RELATIONSHIP OF PARTIES................................................51
38.   GENERAL PROVISIONS.....................................................51
39.   RULES AND REGULATIONS..................................................

                                        2

<PAGE>

                              NET INDUSTRIAL LEASE

         This Lease between SQUARE ONE PARTNERS, a California general
partnership ("Landlord"), and LA JOLLA FRESH SQUEEZED COFFEE CO., INC., a
Washington corporation ("Tenant"), executed as of June 30, 2002.

1. LEASE OF PREMISES.
   ------------------
1.1.     In consideration of the Rent (as defined in the Article titled "Rent")
         and the provisions of this Lease, Landlord leases to Tenant and Tenant
         leases from Landlord the Premises described in the Article titled
         "Definitions." The Premises are located within the Building described
         in the Article titled "Definitions." Tenant shall have the
         non-exclusive right (unless otherwise provided herein) in common with
         Landlord, other tenants, subtenants and invitees, to use of the Project
         Enhancement Areas And Unit Shared Use Areas (as defined in the Article
         titled "Definitions").

1.2.     Tenant has examined the Premises and is fully informed of their
         condition.

1.3.     This Lease confers no rights either with regard to the subsurface of
         the land below the ground level of the Premises or with regard to
         airspace above the top of the roof of the building that is a part of
         the Premises.

2. EXHIBITS AND ADDENDA.
   ---------------------
         The exhibits and addenda listed below (unless lined out) are
incorporated by reference in this Lease:

2.1.     Exhibit "A" - Site Plan designating the Premises, Building, Unit and
         Project Enhancement Areas.

2.2.     Exhibit "B" - Rules and Regulations.

2.3.     Exhibit "C" - Floor Plan and Tenant Improvements to the Premises.

3. DEFINITIONS
   -----------
         As used in this Lease, the following terms shall have the following
meanings:

3.1.     BASE RENT: $ 20,242.00 per month.

3.2.     BUILDING: The building in the Project containing the Premises.

3.3.     COMMENCEMENT DATE: October 1, 2002.

3.4.     EXPIRATION DATE: November 30, 2009, unless otherwise sooner terminated
         in accordance with the provisions of this Lease.

3.5.     LANDLORD'S MAILING ADDRESS: SQUARE ONE PARTNERS
                                     4275 Executive Square, Suite 1020,
                                     La Jolla, California 92037
                                     Attention: Michael P. Cafagna

3.6.     TENANT'S MAILING ADDRESS:   LA JOLLA FRESH SQUEEZED COFFEE CO., INC.
                                     1311 Specialty Drive, Vista, CA  92083
                                     Attention: Richard Gartrell, CFO

3.7.     OPERATING EXPENSES: All direct costs of operation and maintenance, as
         determined by standard accounting practices, including, but not limited
         to, Common Area expenses, real property taxes, insurance, maintenance,
         repairs, utilities, management fees, pest control, services and
         reserves. Operating Expenses are more fully defined in the Article
         titled "Operating Expenses." Landlord estimates that the Operating
         Expenses will be approximately $4,542.00 per month during the first
         year of the Lease. The actual Operating Expenses will be determined as
         provided in the Article titled "Operating Expenses," and may be more or
         less than the estimated Operating Expenses.

                                        3

<PAGE>

3.8.     PARKING: Tenant shall be permitted to park Seventy-Five (75) cars on a
         non-exclusive basis in the area(s) designated by Landlord for parking.

3.9.     PREMISES: That portion of the Project located at 1311 Specialty Drive,
         Vista, California, containing approximately 37,850 square feet of
         Rentable Area, shown by diagonal lines on Exhibit "C." Landlord does
         not purport to represent this figure as an accurate measurement.
         Measurements are to the drip-line of the exterior walls and include a
         pro-rata share of the electric meter room.

3.10.    PROJECT: A multi-tenant industrial/office/commercial real property
         development of Landlord and Landlord's affiliates located in Vista,
         California. The Project includes the land, the buildings and all other
         improvements located thereon, including the Project Enhancement Areas
         And The Unit Shared Use Areas. The Project is known as the Rancho Vista
         Business Park

3.11.    PROJECT ENHANCEMENT AREAS: Specific areas of one or more lots within
         the Project which have been designated to be used for the enhancement
         of the Project. Project Enhancement Areas may include, but are not
         limited to, landscaped areas containing lighted monument signs for the
         Project.

3.12.    PROJECT ENHANCEMENT AREA EXPENSES: All direct costs of operation and
         maintenance of the Project Enhancement Areas, as determined by standard
         accounting practices, including, but not limited to, electrical
         lighting for Project monument signs, water for landscaping, landscape
         maintenance and repair and reserves.

3.13.    RENT: All costs and expenses that Tenant assumes or agrees to pay to
         Landlord under this Lease shall be deemed additional rent. The sum
         total of such costs and expenses plus the Base Rent is at times
         referred to herein as the "Rent").

3.14.    RENTABLE AREA: As to the Premises, the measurements of floor area as
         may, from time to time, be subject to lease by Tenant. As to the
         Building, the measurements of floor area as may, from time to time, be
         subject to lease by all tenants of the Building respectively, as
         determined by Landlord and applied on a consistent basis throughout the
         Building.

3.15.    SECURITY DEPOSIT (SEE THE ARTICLE TITLED "SECURITY DEPOSIT"):
         $20,242.00. The portion of the Security Deposit which shall be
         designated as a Cleaning Deposit shall be $2,024.00.

3.16.    TENANT'S FIRST ADJUSTMENT DATE (SEE THE ARTICLE TITLED "RENT"): The
         first day of the calendar month following the Commencement Date plus
         twelve (12) months.

3.17.    TENANT'S PRO RATA SHARE OF THE BUILDING: Tenant's Pro Rata Share of the
         Building is a fraction, the numerator of which is the Rentable Area of
         the Premises (as determined by Landlord), and the denominator of which
         is the total Rentable Area of all tenants in the Building (as
         determined by Landlord). If Rentable Area is added to or removed from
         the Building, Landlord shall recalculate the fractions described in
         this Section for purposes of this Lease.

3.18.    TENANT'S PRO RATA SHARE OF THE PROJECT: Such share is calculated as
         follows: Tenant's Pro Rata Share of the Building times a fraction, the
         numerator of which is the gross square footage of the lot on which the
         Premises is located (as determined by Landlord), and the denominator of
         which is 2,617,630 (the total gross square footage of the Project). If
         land is added to or removed from the Project, Landlord shall
         recalculate the total gross square footage of the Project for purposes
         of this Lease.

                                        4

<PAGE>

3.19.    TENANT'S PRO RATA SHARE OF THE UNIT: Such share is calculated as
         follows: Tenant's Pro Rata Share of the Building times a fraction, the
         numerator of which is the gross square footage of the lot on which the
         Premises is located, and the denominator of which is the total gross
         square footage of all the lots in the Unit, as determined by Landlord
         from time to time. If land is added to or removed from the any of the
         lots in the Unit, Landlord shall recalculate the total gross square
         footages of the lots and the corresponding fractions for purposes of
         this Lease.

3.20.    TENANT'S USE CLAUSE (SEE THE ARTICLE TITLED "USE, LIMITATIONS"):
         General office, coffee research and development, production,
         distribution, other related uses and any other legally permitted use.

3.21.    TERM: The period commencing on the Commencement Date and expiring at
         midnight on the Expiration Date.

3.22.    TRADE NAME: JAVO BEVERAGE COMPANY AND LA JOLLA FRESH SQUEEZED COFFEE.

3.23.    UNIT: A portion of the Project consisting of one or more lots and one
         or more Buildings, one of which contains the Premises, as designated on
         the Site Plan attached hereto as Exhibit "A".

3.24.    UNIT SHARED USE AREA: All areas of a lot within the Unit except for
         Buildings and Exclusive Use Areas, if any.

3.25.    UNIT SHARED USE AREA EXPENSES: All direct costs of operation and
         maintenance of the Unit Shared Use Areas of the Unit, as determined by
         standard accounting practices, including, but not limited to, exterior
         lighting, exterior water, landscape maintenance and repair, porter,
         parking lot maintenance and repair, trash collection services and
         reserves.

3.26.    MISCELLANEOUS DEFINITIONS:
         --------------------------
ALTERATION: any addition or change to, or modification of, the Premises made by
         Tenant after the fixturing period, including, without limitation,
         fixtures, but excluding trade fixtures, and Tenant Improvements.

AUTHORIZED REPRESENTATIVE: any officer, agent, employee, or independent
         contractor retained or employed by either Party, acting within
         authority given him by that Party.

CLAIMS:all claims, actions, demands, liabilities, damages, costs, penalties,
         forfeitures, losses or expenses, including, without limitation,
         reasonable attorneys' fees and the costs and expenses of enforcing any
         indemnification, defense or hold harmless obligation under the Lease.

                                        5

<PAGE>

COMMENCEMENT DATE MEMORANDUM: the form of memorandum attached to the Lease.

DAMAGE:  injury, deterioration, or loss to a person or property caused by
         another person's acts or omissions. Damage includes death.

DAMAGES: a monetary compensation or indemnity that can be recovered in the
         courts by any person who has suffered damage to his person, property,
         or rights through another's act or omission.

DESTRUCTION: any damage to or disfigurement of the Premises.

DOMESTIC WATER: metered water service to the interior of the Building.

ENCUMBRANCE: any deed of trust, mortgage, or other written security device or
         agreement affecting the Premises, and the note or other obligation
         secured by it, that constitutes security for the payment of a debt or
         performance of an obligation.

EXPIRATION: the coming to an end of a time period specified in the Lease,
         including, without limitation, any extension of the term resulting from
         the exercise of an option to extend.

GOOD CONDITION: the good physical condition of the Premises and each portion
         of the Premises, including, without limitation, signs, windows, show
         windows, appurtenances, and Tenant's personal property. "In good
         condition" means first-class, neat, clean, and broom-clean, and is
         equivalent to similar phrases referring to physical adequacy in
         appearance and for use.

HOLD HARMLESS: to defend and indemnify from all liability, losses, penalties,
         damages, costs, expenses (including, without limitation, attorneys'
         fees), causes of action, claims, or judgments arising out of or related
         to any damage, as defined hereinabove, to any person or property.

LANDLORD PARTIES: Landlord and Property Manager and their respective officers,
         directors, partners, shareholders, members and employees.

LAW:     any law, judicial decision, statute, constitution, ordinance,
         resolution, regulation, rule, administrative order, direction, or other
         requirement of any municipal, county, state, federal, or other
         government agency or authority having jurisdiction over the Parties,
         Project, Building, or the Premises in effect either at the time of
         execution of the Lease or at any time during the term, including,
         without limitation, any regulation or order of a quasi-official entity
         or body (e.g., board of fire examiners or public utilities). The
         reference in this Lease to any legislation or any portion thereof shall
         be read as though the words "or any statutory modifications or
         re-enactment thereof or any statutory provisions substituted thereof"
         were added to such reference.

                                        6

<PAGE>

LENDER:  the beneficiary, mortgagee, secured Party, or other holder of an
         encumbrance, as defined hereinabove.

LIEN:    a charge imposed on the Premises by someone other than Landlord, by
         which the Premises are made security for the performance of an act.
         Most of the liens referred to in this Lease are mechanics' liens.

MAINTENANCE: repairs, replacement, repainting, and cleaning.

MORTGAGE: any mortgage, deed of trust, security interest or other security
         document of like nature that at any time may encumber all or any part
         of the Project and any replacements, renewals, amendments,
         modifications, extensions or refinancings thereof, and each advance
         (including future advances) made under any such instrument.

PARTY:   shall mean Landlord or Tenant; and if more than one person or entity is
         Landlord or Tenant, the obligations imposed on that Party shall be
         joint and several.

PERSON:  one or more human beings, or legal entities or other artificial
         persons, including, without limitation, partnerships, corporations,
         trusts, estates, associations, and any combination of human beings and
         legal entities.

PROPERTY MANAGER: An agent Landlord may appoint from time to time to manage the
         Project. Property Manager is authorized to manage the Project. Landlord
         appointed Property Manager to act as Landlord's agent for leasing,
         managing, and operating the Project. The Property Manager then serving
         is authorized to accept service of process and to receive and give
         notices and demands on Landlord's behalf.

PROVISION: any term, agreement, covenant, condition, clause, qualification,
         restriction, reservation, or other stipulation in the Lease that
         defines or otherwise controls, establishes, or limits the performance
         required or permitted by either Party.

RESTORATION: the reconstruction, rebuilding, rehabilitation, and repairs that
         are necessary to return destroyed portions of the Premises and other
         property to substantially the same physical condition in which they
         were immediately before the destruction.

SUCCESSOR: assignee, transferee, personal representative, heir, or other person
         or entity succeeding lawfully, and pursuant to the provisions of this
         Lease, to the rights or obligations of either Party.

TENANT:  a person or entity (or their successor in interest) who has signed a
         valid existing lease for a space in the Project.

                                        7

<PAGE>

TENANT   IMPROVEMENTS: any addition to or modification of the Premises made by
         or for Tenant before, at, or near the commencement of the term,
         including, without limitation, fixtures (not including Tenant's trade
         fixtures).

TENANT'S PERSONAL PROPERTY: Tenant's equipment, furniture, merchandise, and
         movable property placed in the Premises by Tenant, including Tenant's
         trade fixtures.

TENANT'S TAXES: Any and all taxes, assessments, levies, fees, and other
         governmental charges of every kind or nature levied or assessed by
         municipal, county, state, federal, or other taxing or assessing
         authorities with respect to: all furniture, fixtures, equipment, and
         any other personal property of any kind owned by Tenant and placed,
         installed, or located within, upon, or about the Premises to the extent
         that the property tax on such property is assessed directly to
         Landlord; all alterations of whatsoever kind or nature, if any, made by
         or for Tenant to the Premises after the execution of this Lease; and
         the leasehold interest of Tenant. Tenant's Taxes shall also include
         taxes irrespective of whether any of the items are assessed as real or
         personal property and irrespective of whether any of such items or
         taxes are assessed to or against Landlord or Tenant.

TENANT'S TRADE FIXTURES: any property installed in or on the Premises by Tenant
         for purposes of trade, manufacture, ornament, or related use.

TERMINATION: the ending of the term before expiration for any reason.

4. DELIVERY OF POSSESSION.
   -----------------------
4.1.     If for any reason Landlord does not deliver possession of the Premises
         to Tenant on the Commencement Date, Landlord shall not be subject to
         any liability for such failure, the Expiration Date shall not change,
         the validity of this Lease shall not be impaired, this Lease shall be
         neither void nor voidable, but Rent shall be abated until delivery of
         possession.

4.2.     If Landlord permits Tenant to enter into possession of the Premises
         before the Commencement Date, such possession shall be subject to the
         provisions of this Lease, including, without limitation, the payment of
         Rent.

4.3.       If the delay in delivery of the Premises is the result of Tenant's
           delay, the Commencement Date shall not be delayed by the number of
           days of such Tenant delay and, for purposes of Tenant's obligation to
           pay rent, the Commencement Date shall be deemed to have occurred on
           the date that the Premises would have been ready for occupancy but
           for the Tenant delay. In the event Tenant requests not to initially
           improve certain areas of the Premises, the Commencement Date for
           those areas will be the same as the improved Premises.

4.4.       On the Commencement Date, the roof, plumbing, fire sprinkler system,
           lighting, heating ventilation and air conditioning systems and
           electrical systems in the Premises will be in good operating
           condition. Landlord will rectify any non-compliance with such
           warranty at Landlord's sole expense and not as an Operating Expense.

                                        8

<PAGE>

4.5.     This Lease shall not commence until the Tenant Improvements have been
         substantially completed and an occupancy permit has been issued.

4.6.     Except as otherwise set forth in this Lease, Tenant's occupancy of the
         Premises conclusively establishes that Landlord completed improvements,
         if any, in a manner satisfactory to Tenant and constitutes Tenant's
         waiver and release of any and all rights, benefits, claims or
         warranties available to Tenant under this Lease, at law or in equity in
         connection with such improvements.

5. ACCEPTANCE.
   -----------
5.1.     By taking possession, Tenant acknowledges that Premises are in good
         condition.

5.2.     The taking of possession or use of the Premises by Tenant for any
         purpose other than construction shall conclusively establish that the
         Premises and the Project were, at such time, in satisfactory condition
         (except for latent defects) and in conformity with the provisions of
         this Lease in all respects, excepting only items of which Tenant shall
         give Landlord written notice in reasonable detail within fifteen (15)
         days after Tenant takes such possession or commences such use of the
         Premises or the term of this Lease otherwise commences.

5.3.     Tenant acknowledges that neither Landlord nor any agent of Landlord has
         made any representation or warranty with respect to the Premises or the
         Project or with respect to their suitability or fitness for the conduct
         of Tenant's business or for any other purpose.

6. USE, LIMITATIONS.
   -----------------
6.1.     Tenant shall use the Premises solely for the purposes set forth in the
         Tenant's Use Clause and for no other use without Landlord's prior
         written consent. Landlord may grant or withhold consent at its sole
         discretion.

6.2.     Tenant shall conduct its business at the Premises under the trade name
         set forth in the Tenant's Trade Name Clause and under no other trade
         name unless first obtaining the written consent of Landlord. Landlord
         shall not unreasonably withhold consent.

6.3.     Tenant shall not do, bring, or keep anything in or about the Premises
         that will cause a cancellation of any insurance covering the Premises
         or its contents. If the rate of any insurance carried by Landlord is
         increased as a result of Tenant's use, Tenant shall pay to Landlord
         within ten (10) days before the date Landlord is obligated to pay a
         premium on the insurance, or within ten (10) days after Landlord
         delivers to Tenant a certified statement from Landlord's insurance
         carrier stating that the rate increase was caused by an activity of
         Tenant on the Premises, as permitted in this Lease, whichever date is
         later, a sum equal to the difference between the original premium and
         the increased premium.

6.4.     Tenant shall comply with any master Covenants, Conditions and
         Restrictions and/or any Declaration of Restrictions that may encumber
         the real property on which the Premises are located.

                                        9

<PAGE>

6.5.     Tenant shall comply with all Laws concerning the Premises or Tenant's
         use of the Premises, including, without limitation, the obligation at
         Tenant's cost to alter, maintain, change, or restore the Premises in
         compliance and conformity with all Laws relating to the condition, use,
         or occupancy of the Premises during the term. Tenant will also comply
         with the requirements of any fire insurance underwriters or other
         similar body now or hereafter constituted relating to or affecting the
         conditions, use, or occupancy of the Premises. Tenant agrees to install
         at its sole cost and expense any improvements, changes, or alterations
         authorized in writing by Landlord and required by any governmental
         authority as a result of Tenant's use of the Premises or its manner of
         operation or any alterations made by Tenant. If Tenant contests the
         validity or application of any Law or other requirement of any
         governmental authority, Tenant shall furnish a bond as required by
         Landlord and shall protect, defend, hold harmless, and indemnify
         Landlord and the Project to the satisfaction of Landlord from and
         against all claims, losses, damages, costs, expenses, and liabilities
         arising from any such contest, including attorneys' fees incurred by
         Landlord in monitoring Tenant's compliance.

6.6.     Tenant shall not do or permit anything to be done in or about the
         Premises that will, in any way, unreasonably obstruct or interfere with
         the rights of other tenants or occupants of the Project or materially
         injure them. Tenant shall not use the Premises in any manner that will
         cause, maintain, permit, or constitute waste, nuisance, or an
         unreasonable annoyance to the quiet enjoyment of the tenants of the
         Building (including, without limitation, the use of loudspeakers or
         sound or light apparatus that can be heard or seen outside the
         Premises). Tenant shall not allow the Premises to be used for any
         unlawful purpose.

6.7.     Subject to the uses permitted under Tenant's use clause, Tenant shall
         not use the Premises for sleeping, washing clothes, cooking, or the
         preparation, manufacture, or mixing of anything that might emit any
         odor or objectionable noises or lights.

6.8.     Tenant shall not do or permit anything on the Premises that will cause
         damage to the Premises. Any overloading of electrical circuits shall be
         the responsibility of Tenant. No machinery, apparatus, or other
         appliance shall be used or operated in or on the Premises that will in
         any manner injure, vibrate, or shake the Premises. Landlord reserves
         the right to prescribe the weight and position of all files, safes, and
         heavy equipment that Tenant desires to place in the Premises so as to
         properly distribute weight. Tenant's business machines and mechanical
         equipment that cause vibration or noise that may be transmitted to the
         Building structure or to any other space in the Building or Project
         shall be so installed, maintained, and used by Tenant as to eliminate
         such vibration or noise. Tenant shall be responsible for all structural
         engineering required to determine structural load.

6.9.       Tenant shall not display or sell merchandise or allow carts, portable
           signs, devices or other objects to be stored or remain outside the
           defined exterior and permanent doorways of the Premises.

6.10.    Tenant shall not conduct or permit any sale by auction on the Premises.

6.11.    Tenant shall have for its use and benefit the non-exclusive right in
         common with Landlord and future owners, other tenants and their agents,
         employees, customers, licensees, subtenants, invitees, and all others
         to whom Landlord has granted or may grant such rights, to use the Unit
         Shared Use Areas during the entire term of this Lease, or any extension

                                       10

<PAGE>

         thereof, for ingress and egress, roadway, automobile parking and
         sidewalks. However, Landlord shall, at all times, have the right and
         privilege of determining the nature and extent of the Unit Shared Use
         Areas and of making such changes which in its opinion are deemed to be
         desirable. Such changes may include, but shall not be limited to the
         following: Converting Unit Shared Use Areas into leasable areas; adding
         additional buildings and improvements on the land or on adjacent land,
         which may share access, Project Enhancement Areas And Unit Shared Use
         Areas, and parking facilities; constructing additional parking
         facilities in the Unit Shared Use Areas; increasing or decreasing Unit
         Shared Use Area land and/or facilities; changing the location, number,
         size, and shape of driveways, entrances, exits, lobbies, automobile
         parking spaces, parking areas, loading and unloading areas, ingress,
         egress, landscaped areas, walkways, the direction and flow of traffic,
         (provided such changes shall not unreasonably restrict or prevent
         Tenant from having proper access to the Premises for loading, parking
         or other normal day to day operations); installation of prohibited
         areas, landscaped areas, and all other facilities thereof. Tenant
         acknowledges that such activities may result in occasional
         inconvenience to Tenant. Landlord reserves the right from time to time
         to close temporarily any of the Unit Shared Use Areas for maintenance
         purposes so long as reasonable access to the Premises is available.
         Nothing contained herein shall be deemed to create any liability upon
         Landlord as a result of said changes or for any damage to motor
         vehicles of customers or employees or for loss of property from within
         such motor vehicles, unless caused by the negligence of Landlord, its
         agents, servants or employees. Any changes in the Unit Shared Use Area
         land and/or facilities shall not entitle Tenant to any compensation or
         diminution or abatement of rent, nor shall any diminution of such areas
         be deemed constructive or actual eviction. All Unit Shared Use Areas
         and facilities not located within the Premises, which Tenant may be
         permitted to use and occupy, pursuant to this Lease, are to be used and
         occupied under a revocable license.

6.12.    Landlord reserves the right from time to time to install, use,
         maintain, repair and replace pipes, ducts, conduits, wires and
         appurtenant meters and equipment for service to other parts of the
         Project above the ceiling surfaces, below the floor surfaces, within
         the walls and in central core areas, and to relocate any pipes, ducts,
         conduits, wires and appurtenant meters and equipment included in the
         Premises that are located in the Premises or located elsewhere outside
         the Premises, and to expand the Project.

6.13.    Landlord shall, at all times during the term of this Lease, have the
         sole and exclusive control of the Unit Shared Use Areas, and may, at
         any time during the term hereof, exclude and restrain any person from
         use or occupancy thereof, excepting, however, bona fide customers,
         patrons and service-suppliers of Tenant, and other tenants of Landlord
         who make use of such areas in accordance with the rules and regulations
         established by Landlord from time to time with respect thereto. The
         rights of Tenant hereunder, in and to the Unit Shared Use Areas, shall,
         at all times, be subject to the rights of Landlord, other tenants of
         the Building and all others to whom Landlord has granted such rights,
         to use the same in common with Tenant. Tenant shall not, at any time,
         interfere with the rights of Landlord, other tenants, or any other
         person entitled to use the Unit Shared Use Areas. It shall be the duty
         of Tenant to keep all Unit Shared Use Areas free and clear of any
         obstructions created or permitted by Tenant or resulting from Tenant's
         operation and to permit the use of any of the parking and roadway
         access areas only for normal parking and ingress and egress by the such
         customers, patrons and service-suppliers to and from the Building.

6.14.    If, in the opinion of Landlord, unauthorized persons are using any Unit
         Shared Use Areas by reason of the presence of Tenant in the Premises,
         Tenant, upon demand of Landlord, shall enforce Landlord's rights
         against all such unauthorized persons by appropriate proceedings.
         Nothing herein shall affect the rights of Landlord, at any time, to
         remove any such unauthorized persons from the Unit Shared Use Areas or
         to restrain the use of any of the Unit Shared Use Areas by unauthorized
         persons.

                                       11

<PAGE>

6.15.    Tenant agrees to comply with such reasonable rules and regulations (the
         "Rules and Regulations") in the use of the Premises and the Unit Shared
         Use Areas as Landlord may adopt from time to time for the orderly and
         proper operation of the Project, provided any such future Rules and
         Regulations shall have no material adverse effect on Tenant's use of
         the Premises and requires no material expenditure on the part of
         Tenant. Tenant shall use its best efforts to cause others who use the
         Unit Shared Use Areas with Tenant's express or implied permission to
         abide by Landlord's Rules and Regulations. Landlord shall not be
         responsible to Tenant for the non-performance by any other tenant or
         occupant of the Project of any of such Rules and Regulations. Such
         Rules and Regulations may include, but are not limited to, the
         following:

         6.15.1.  Normal business hours;

         6.15.2.  Hours during which the Common Areas shall be open for use;

         6.15.3.  The restricting of employee parking to a limited, designated
                  area or areas and the imposition of fines for violations of
                  such restrictions or designations; and

         6.15.4.  The regulation of removal, storage, and disposal of Tenant's
                  refuse and other rubbish.

6.16.    Landlord shall not do any of the following without Tenant's consent,
         which shall not be unreasonably withheld: (i) materially impair the
         visibility of Tenant's exterior signage; (ii) materially impair access
         to and from the Premises to the parking areas; or (iii) reduce the
         number of Tenant's parking spaces.

6.17.    Tenant shall make a reasonable inspection as to the existence of any
         Hazardous Substances on the Premises prior to the commencement of the
         Lease as necessary to satisfy itself as to the condition of the
         Premises.

6.18.    Tenant, at its sole cost and expense, will comply with all Hazardous
         Substances Laws (including, but not limited to any federal, state or
         local statutes, laws, ordinances or regulations in effect either at the
         time of execution of the Lease or at any time during the term, that
         control, classify, regulate, list or define Hazardous Substances) and
         prudent industry storage practice relating to the presence, treatment,
         storage, transportation, disposal, release or management of Hazardous
         Substances in, on, under or about the Project. Tenant shall not enter
         into any settlement agreement, consent decree or other compromise with
         respect to any Claims relating to or in any way connected with
         Hazardous Substances in, on, under or about the Project, without first
         notifying Landlord of Tenant's intention to do so and affording
         Landlord reasonable opportunity to investigate, appear, intervene and
         otherwise assert and protect Landlord's interest in the Project.

6.19.    Tenant shall not cause or permit any Hazardous Substance to be used,
         stored, generated, or disposed of on or in the Premises by Tenant,
         Tenant's agents, employees, contractors, or invitees without first
         obtaining Landlord's written consent. If Hazardous Substances are used,
         stored, generated, or disposed of on or in the Premises except as
         permitted above, or if the Premises become contaminated in any manner
         for which Tenant is legally liable, Tenant shall indemnify, defend and
         hold harmless the Landlord from any and all claims, damages, fines,
         judgments, penalties, costs, liabilities, or losses (including, without
         limitation, a decrease in value of the Premises, damages caused by loss
         or restriction of rentable or usable space, or any damages caused by
         adverse impact on marketing of the space, and any and all sums paid for
         settlement of claims, litigation expenses, attorneys' fees, consultant,
         and expert fees) of whatever kind or nature, known or unknown,
         contingent or otherwise, arising during or after the Lease term and
         arising as a result of that contamination by Tenant. This
         indemnification includes, without limitation, any and all costs
         incurred because of any investigation of the site or any cleanup,
         removal, or restoration mandated by a federal, state, or local agency
         or political subdivision. Without limitation of the foregoing, if
         Tenant causes or permits the presence of any Hazardous Substance on the
         Premises and that results in contamination, Tenant shall promptly, at
         its sole expense, take any and all necessary actions to return the
         Premises to the condition existing prior to the presence of any such
         Hazardous Substance on the Premises. Tenant shall first obtain

                                       12

<PAGE>

         Landlord's approval for any such remedial action. The provisions of
         this Section shall be in addition to any other obligations and
         liabilities Tenant may have to Landlord at law or equity and shall
         survive the transactions contemplated herein and shall survive the
         termination of this Lease. Notwithstanding the foregoing, Tenant may
         use nominal amounts of Hazardous Substances as are normal and customary
         for general office use, provided that Tenant complies with all
         applicable Laws relating thereto.

         6.19.1.  As used herein, "Hazardous Substance" means any substance that
                  is toxic, ignitable, reactive, or corrosive and that is now or
                  hereafter regulated by any local or State government with
                  jurisdiction over the Premises or Tenant, or the United States
                  Government. "Hazardous Substance" includes, but is not limited
                  to, any and all material or substances that are defined as
                  "hazardous waste," "extremely hazardous waste," or a
                  "hazardous substance" pursuant to Law. "Hazardous Substance"
                  includes, but is not limited to, petroleum based products,
                  paints and solvents, lead, cyanide, DDT, printing inks, acids,
                  asbestos, PCB's, contaminants, toxic wastes, toxic pollutants,
                  dredged soil, solid waste, pesticides, herbicides, fertilizers
                  and other agricultural chemicals or wastes, incinerator
                  residue, sewage, garbage, sewage sludge, munitions, chemical
                  products and wastes, and any other liquid, solid or gaseous
                  pollutants or hazardous substances or wastes which are or may
                  become subject to regulation under any State or Federal
                  environmental protection law or regulation.

         6.19.2.  Any Hazardous Substance permitted on the Premises as provided
                  above, and all containers therefore, shall be used, kept,
                  stored, and disposed of in a manner that complies with all
                  Laws applicable to this Hazardous Substance.

         6.19.3.  Tenant shall not discharge, leak, or emit, or permit to be
                  discharged, leaked, or emitted, any material into the
                  atmosphere, ground, sewer system, or any body of water, if
                  that material (as is reasonably determined by the Landlord, or
                  any governmental authority) does or may pollute or contaminate
                  the same, or may adversely affect (a) the health, welfare, or
                  safety of persons, whether located on the Premises or
                  elsewhere, or (b) the condition, use or enjoyment of the
                  building or any other real or personal property. Tenant shall
                  immediately notify Landlord of any release of any Hazardous
                  Substance on or near the Premises whether or not such release
                  is in a quantity that would otherwise be reportable to a
                  public agency and shall also comply with the notification
                  requirements of California Health & Safety Code section
                  25359.7.

         6.19.4.  At the commencement of each Lease Year, Tenant shall disclose
                  to Landlord the names and approximate amounts of each and
                  every Hazardous Substance that Tenant intends to store, use,
                  or dispose of on the Premises in the coming Lease Year. In
                  addition, at the commencement of each Lease Year, beginning
                  with the second Lease Year, Tenant shall disclose to Landlord
                  the names and amounts of all Hazardous Substances that were
                  actually used, stored, or disposed of on the Premises if those
                  materials were not previously identified to Landlord at the
                  commencement of the previous Lease Year.

6.20.    Tenant shall notify Landlord of any of the following actions affecting
         Landlord, Tenant, or the Project that result from or in any way relate
         to Tenant's use of the Project immediately after receiving notice of
         the same: (a) any enforcement, clean-up, removal or other governmental
         or regulatory action instituted, completed or threatened under any

                                       13

<PAGE>

         Hazardous Substances Law; (b) any Claim made or threatened by any
         person relating to damage, contribution, liability, cost recovery,
         compensation, loss or injury resulting from or claimed to result from
         any Hazardous Substance; and (c) any reports made by any person,
         including Tenant, to any environmental agency relating to any Hazardous
         Substance, including any complaints, notices, warnings or asserted
         violations. Tenant will also deliver to Landlord, as promptly as
         possible and in any event within five business days after Tenant first
         receives or sends the same, copies of all Claims, reports, complaints,
         notices, warnings or asserted violations relating in any way to the
         Premises or Tenant's use of the Premises. Upon Landlord's written
         request, Tenant will promptly deliver to Landlord documentation
         acceptable to Landlord reflecting the legal and proper disposal of all
         Hazardous Substances removed or to be removed from the Premises. All
         such documentation will list Tenant or its agent as a responsible party
         and will not attribute responsibility for any such Hazardous Substances
         to Landlord or Property Manager.

6.21.    Tenant acknowledges and agrees that all reporting and warning
         obligations required under Hazardous Substances Laws resulting from or
         in any way relating to Tenant's use of the Premises or Project are
         Tenant's sole responsibility, regardless whether the Hazardous
         Substances Laws permit or require Landlord to report or warn.

6.22.    Tenant shall obtain proper permits from the City of Vista, the Fire
         Department, and any other government agencies necessary to operate its
         business at this location. In the event any of these agencies require
         building modifications to adapt the building to Tenant's current or
         future use, Tenant shall make such modifications at Tenant's sole
         expense.

6.23.    Landlord shall, at an interval determined at Landlord's discretion,
         monitor Tenant's program and efforts to manage and control Hazardous
         Substances and conduct inspections that it deems proper to determine
         whether any contamination has taken place. If contamination caused by
         Tenant is discovered through such monitoring and inspection, the
         following program shall be instituted at Tenant's expense:

6.24.    A low-level geotechnical reconnaissance shall be conducted to determine
         soil classification, depth of ground water, nearest drinking water
         aquifer, direction of ground water flow.

6.25.    Based on the result of this inspection, three (3) to (6) ground water
         monitor wells shall be placed at strategic points on the Premises or
         other appropriate locations in the Project. These are wells shall use
         specially prepared PVC and stainless steel pipes and fittings as
         recommended by the testing engineers or technicians.

6.26.    A "background analysis" of the site shall then be conducted for
         "priority pollutants." This analysis establishes the pollutants present
         in the soil and ground water at the beginning of the monitoring period.
         Landlord and Tenant should maintain this analysis on file for future
         reference and comparison.

6.27.    Every three (3) years, or such other interval as may be recommended by
         the testing engineers or technicians, an analysis shall be made of the
         ground water drawn from the monitoring wells to determine if new or
         increased pollutants are present in the ground water. An industrial
         environmental laboratory using a spectrometer and other appropriate
         analytical processes shall conduct analysis.

6.28.    If, on the basis of this testing procedure it is determined that there
         is continued pollution of the Premises, Tenant shall immediately take
         steps as required, at Tenant's sole expense, to contain, clean up, and
         discontinue the contamination of the soil and/or groundwater.

                                       14

<PAGE>

6.29.    Regular monitoring of the ground water shall then continue for the
         duration of the lease period.

6.30.    The discovery of Hazardous Substances on the Premises shall not
         constitute grounds for rescission or termination of the Lease by the
         Tenant, nor for offset against, or abatement of, any rents due under
         the terms of the Lease. Landlord represents to Tenant that Landlord has
         no actual knowledge of the presence of any Hazardous Materials within
         the Premises. Landlord indemnifies Tenant from all liability arising
         from the presence of any Hazardous Materials that were present within
         the Premises before the commencement of Tenants occupancy of the
         Premises.

7. RENT.
   -----
7.1.     Tenant shall pay the Rent to Landlord in lawful money of the United
         States of America, without deduction, setoff, prior notice, or demand.
         Rent is due on or before the first day of each month, commencing on the
         Commencement Date and continuing during the Term. Base Rent for the
         first month or portion of it shall be paid upon execution of this
         Lease. Base Rent for any partial month shall be prorated at the rate of
         1/30th of the Base Rent per day. Thereafter, Rent shall be payable in
         accordance with the terms of this Section. The total consideration for
         the term of this Lease shall be increased by the amount of any such
         prorated installment hereby required. All Rent shall be paid to
         Landlord at the address provided in this Lease or at such other place
         as Landlord may from time to time designate in writing.

7.2.     Landlord shall have the right to accept all Rent and other payments,
         whether full or partial, and to negotiate checks and payments thereof,
         without any waiver of rights, irrespective of any conditions to the
         contrary that Tenant seeks to impose. No security or guaranty that may
         now or later be furnished to Landlord for the payment of Rent herein
         reserved or for performance by Tenant of the other covenants or
         conditions of this Lease shall in any way be a bar or defense to any
         action in unlawful detainer, or for the recovery of the Premises or to
         any action that Landlord may at any time commence for a breach of any
         of the covenants or conditions of this Lease.

         7.2.1.   The amount of Base Rent (and the corresponding Monthly
                  Installments of Base Rent) payable hereunder shall be adjusted
                  annually (the "Adjustment Date"), commencing on Tenant's First
                  Adjustment Date. Adjustments shall be based upon the
                  following:

         7.2.2.   Commencing on October 1, 2003, the Base Rent shall be
                  $20,849.00;

         7.2.3.   Commencing on October 1, 2004, the Base Rent shall be
                  $21,475.00;

         7.2.4.   Commencing on October 1, 2005, the Base Rent shall be
                  $22,119.00;

         7.2.5.   Commencing on October 1, 2006, the Base Rent shall be
                  $22,783.00;

         7.2.6.   Commencing on October 1, 2007, the Base Rent shall be
                  $23,466.00;

         7.2.7.   Commencing on October 1, 2008, the Base Rent shall be
                  $24,170.00;

         7.2.8.   Commencing on October 1, 2009, the Base Rent shall be
                  $24,895.00.

         7.2.9.   Rent or any other sum not paid to Landlord when due shall bear
                  interest at the rate of 10% per annum from the date due until
                  fully paid. Paying such interest shall not excuse or cure any
                  default by Tenant under this Lease.

                                       15

<PAGE>

7.3.     If this Lease terminates before the expiration date for reasons other
         than Tenant's default, Base Rent shall be prorated to the date of
         termination, and Landlord shall immediately repay to Tenant all Base
         Rent then prepaid and unearned.

8. LATE CHARGES.
   -------------
8.1.     In the event any payment of Rent or any other sum required hereby shall
         not be paid within (5) days after the same shall be due and payable, a
         late charge by way of damages shall be immediately due and payable in
         addition to the interest provided above. However, as an accommodation
         to Tenant, only upon the first occurrence, in any calendar year, of
         Tenant's failure to pay rent when due, Landlord shall give Tenant
         written notice of Tenant's failure to make such payment. If Landlord
         does not receive such payment within five days after sending Tenant
         notice, the late charge shall be due and payable. Tenant recognizes and
         acknowledges that default in making, when due, payments of Rent
         required hereby will result in Landlord incurring additional costs and
         expenses. Such costs and expenses include, but are not limited to,
         processing and accounting charges, legal costs, late charges that may
         be imposed on Landlord by the terms of any encumbrance and note secured
         by any encumbrance covering the Premises, loss to Landlord of the use
         of the money due, and late charges that may be imposed on Landlord by
         the terms of any mortgage or trust deed covering the Premises. Tenant
         hereby agrees that, in the event of any such late payment, Landlord
         will be damaged and will be entitled to compensation for these damages,
         but such damages are, and will continue to be extremely difficult and
         impractical to ascertain for the following reasons: (i) the damages to
         which Landlord will be entitled in a court of law will be based on the
         difference between the actual value of Rent on the Premises at the time
         such payment is due and the Rent for the Premises as set forth in this
         Lease which difference must be based on opinions of rental value of the
         Premises which can vary in significant amounts; and (ii) it is
         impossible to predict as of the date on which this Lease is entered
         into whether the rental value of the Premises will increase or decrease
         as of the date of any future payments, and Tenant desires to limit the
         amount of damages for which Tenant might be liable should Tenant fail
         to make any payment of Rent required hereby. Tenant therefore agrees
         (i) that a late charge equal to percent (5%) of each payment of Rent
         that becomes delinquent is a reasonable estimate of said damages to
         Landlord and (ii) to pay said sum on demand.

8.2.     Acceptance of any late charge, or any part thereof, shall not
         constitute a waiver of Tenant's default with respect to the overdue
         amount, or prevent Landlord from exercising any of the other rights and
         remedies available to Landlord. Any late charge shall be deemed
         additional rent and collection thereof shall be in addition to all of
         Landlord's other rights and remedies hereunder or at law or in equity
         and shall be construed as liquidated damages or as limiting Landlord's
         remedies in any manner. If Rent is not received by the due date,
         Landlord shall notify Tenant and Tenant shall, on demand of Landlord,
         immediately cure the default by presentment of Rent and late charge to
         Landlord.

8.3.     Any payments of any kind returned for insufficient funds will be
         subject to an additional handling charge of twenty-five dollars
         ($25.00).

8.4.     Tax Allocation: For purposes of the Internal Revenue Code, Landlord and
         Tenant hereby agree to allocate the stated rents provided herein to the
         periods that correspond to the actual Rent payments as provided under
         the terms and conditions of this Lease.

9. SECURITY DEPOSIT.
   -----------------
9.1.     On execution of this Lease, Tenant shall deposit with Landlord the
         Security Deposit for the full and faithful performance by Tenant of the
         provisions of this Lease. If Tenant is in default, Landlord can use,
         apply, or retain the Security Deposit, or any portion of it, to cure
         the default, for the payment of any other amount that Landlord may

                                       16

<PAGE>

         spend or become obligated to spend by reason of Tenant's default, or to
         compensate Landlord for any loss or damage sustained by Landlord
         resulting from Tenant's default. Tenant shall immediately upon demand
         pay to Landlord a sum equal to the portion of the Security Deposit
         expended or applied by Landlord as provided in this Section so as to
         maintain the Security Deposit in the sum initially deposited with
         Landlord. It is expressly agreed that the Security Deposit is not an
         advance rental deposit or a measure of Landlord's damages in the case
         of Tenant's default. A portion of the Security Deposit has been
         designated herein as a Cleaning Deposit. Said Cleaning Deposit shall be
         non-refundable, and shall be used for cleaning the Premises following
         the termination or expiration of this Lease. Tenant shall remain liable
         for the cost of cleaning the Premises if such cost exceeds the Cleaning
         Deposit. If Tenant is not in default at the expiration or termination
         of this Lease, Landlord shall return the Security Deposit, less the
         amount of the Cleaning Deposit, if any remains, to Tenant, less any
         amounts required to restore the Premises to good condition and repair,
         including damage resulting from the removal by Tenant of its trade
         fixtures or equipment. Landlord's obligations with respect to the
         Security Deposit are those of a debtor and not a trustee. Landlord can
         maintain the Security Deposit separate and apart from Landlord's
         general funds or can commingle the Security Deposit with Landlord's
         general and other funds. Landlord shall not be required to pay Tenant
         interest on the Security Deposit. In addition, Landlord may, at
         Landlord's sole option, require Tenant to, immediately upon demand,
         increase the amount of the Security Deposit to an amount not to exceed
         the sum of (i) the then current Base Rent, plus (ii) the equivalent of
         Tenant's Pro Rata Share of one month's estimated Operating Expenses.

10. RENTAL ABATEMENT.
    -----------------

10.1.    During the months of November 2002, December 2002, January 2003 and
         February 2003, one-half (1/2) of the Base Rent shall be abated; and
         Tenant shall only have the privilege to occupy the Premises with
         payment of one-half (1/2) of the Base Rent abated, subject to the
         following special condition subsequent:

         If Tenant defaults on any Rent payment or breaches any other provision
         of the Lease (which breach was not cured within any applicable cure
         period under this Lease), Tenant shall automatically forfeit the
         privilege to such Rent abatement. In that event, any such abated rental
         amount shall become immediately due and payable, and Tenant shall have
         no further right to occupy the Premises at a reduced rate.

10.2.    Tenant shall continue to be responsible for additional rent, including,
         but not limited to, Operating Expenses and any other charges due
         pursuant to the provisions of this Lease (with the exception of the
         one-half (1/2) Base Rent) during the rental abatement period.

11. OPERATING EXPENSES.
    -------------------
11.1.    For purposes of this Lease, Operating Expenses shall mean all direct
         costs paid or incurred in connection with the operation, management,
         repair, and maintenance, as determined by standard accounting
         practices, including, but not limited to: Common Area expenses; real
         property taxes and assessments and any taxes or assessments hereafter
         imposed in lieu thereof; rent taxes, gross receipt taxes (whether
         assessed against Landlord or assessed against Tenant and paid by
         Landlord, or both); water and sewer charges; accounting, audit,
         verification, legal and other consulting fees (but excluding legal fees
         in connection with a dispute between Landlord and any tenant); the net
         cost and expense of insurance for which Landlord is responsible
         hereunder or which Landlord or any first mortgagee with a lien
         affecting the Building reasonably deems necessary in connection with
         the Building; maintenance; repairs; utilities and utilities surcharge;
         management fees; pest control, janitorial, and security services;

                                       17

<PAGE>

         reserves, any and all assessments Landlord must pay for the Building
         pursuant to any covenants, conditions or restrictions and agreements
         affecting the Building or the Project; any costs levied, assessed or
         imposed by, or at the direction of, regional, municipal, or local
         government authority in connection with the use or occupancy of the
         Building or the Premises or the parking facilities serving the Building
         or the Premises, including required traffic management and fire safety
         programs and the Americans With Disabilities Act; the cost (amortized
         over such reasonable period as Landlord shall determine together with
         interest at the rate of Landlord's financing of such improvements or at
         a rate allowed by Law on the unamortized balance) of any capital
         improvements made to the Project or the Common Areas by the Landlord or
         replacement of any building equipment (a) needed to operate the
         Building or the Common Areas as required by any federal, state,
         regional, municipal, or local governmental authority, (b) installed as
         a labor-saving device or to effect other economies in the operation or
         maintenance of the Building, or (c) needed periodically to maintain the
         appearance of the Building and its quality; costs incurred in the
         management of the Building including supplies, wages, salaries, payroll
         expenses, taxes and similar governmental charges with respect thereto
         of employees used in the management, repair, operation, and maintenance
         of the Building; Project or Building management office rental; a market
         rate management fee; air conditioning, waste disposal, utility systems,
         mechanical systems, heating, ventilating, and elevator maintenance
         costs; supplies, materials, equipment, and tools; costs of maintaining
         the plumbing, heating, ventilating, air conditioning, and electrical
         systems installed or furnished by Landlord; depreciation of the cost of
         acquiring or the rental value of personal property used in maintenance,
         and all other upkeep of Common Areas; costs and expenses of gardening,
         landscaping, and interior plant service; maintenance of signs (other
         than Tenant's signs); personal property taxes levied on or attributable
         to personal property used in connection with the Building, including
         the Common Areas; costs and expenses of resurfacing, repairing,
         maintenance, painting, lighting, cleaning, refuse removal, security,
         and similar items, including appropriate reserves for the parking
         garage; and, appropriate reserves to provide for maintenance, repair
         and replacement of improvements in the Building as determined by
         Landlord based on annual projections of such costs. The following items
         shall be excluded from Operating Expenses: (i) costs related to
         Hazardous Materials existing on the Premises prior to the Commencement
         Date; (ii) increases in real property taxes that are attributed to the
         months before September 1, 2006, and arises solely as a result of a
         change in ownership of the Building; and (iii) any other expenses which
         would not be considered to be normal maintenance and operating expenses
         of some aspect of the Building or Project.

11.2.    Tenant shall pay to Landlord, as additional rent, Tenant's Pro Rata
         Share of such Operating Expenses in the following manner:

         11.2.1.  Tenant shall pay to Landlord, as additional rent, on the first
                  day of each calendar month of the term of this Lease, an
                  amount equal to Landlord's best estimate (based on Landlord's
                  budgeted figures) of Tenant's monthly Pro Rata Share of the
                  Operating Expenses.

         11.2.2.  Within ninety (90) days following the end of each calendar
                  year, Landlord shall furnish Tenant with a statement covering
                  the calendar year just expired (certified as correct by an
                  authorized representative of Landlord, or if requested by a
                  majority of the tenants in the Building by a certified public
                  accountant) showing (i) the total Operating Expenses; (ii) the
                  amount of Tenant's Pro Rata Share of such Operating Expenses
                  for such calendar year; and (iii) the payments made by Tenant
                  with respect to such period as set forth in this Article. If
                  Tenant's payments exceed Tenant's Pro Rata Share of such
                  Operating Expenses, Tenant shall be entitled to offset the
                  excess against the next payments due Landlord as set forth in
                  this Article. However, if Tenant's Pro Rata Share of such
                  Operating Expenses exceeds Tenant's payments, Tenant shall pay
                  Landlord the deficiency within ten (10) days after receipt of
                  such statement. In addition, Tenant's Pro Rata Share of the
                  total Operating Expenses for the previous calendar year shall
                  be used as an estimate for the current year and paid to
                  Landlord pursuant to the provisions of this Article.

                                       18

<PAGE>

         11.2.3.  Landlord may, at its option, by service of written notice on
                  Tenant, choose to alter any payment periods provided for by
                  this Lease under the Articles titled "Rent," "Operating
                  Expenses," "Taxes; Assessments," "Maintenance," "Indemnity and
                  Exculpation" and "Insurance."

11.3.    If at any time during the term of this Lease, it shall be determined by
         rule, regulation or competent authority of any governmental or
         quasi-governmental entity having jurisdiction over the Premises or the
         Project, that any material, substance, service equipment, or system
         must be installed in or removed from the Premises or the Building in
         order to protect or maintain the health or safety of Tenant or those
         entering upon or working within the Premises, Landlord shall make such
         installation or removal and the cost of such installation or removal
         shall be included in Operating Expenses, provided that the requirement
         of the installation or removal of any such material, substance, service
         or equipment is not occasioned by the fault of Tenant in which event
         such cost shall be borne by Tenant.

12. TAXES; ASSESSMENTS.
    -------------------
12.1.    Tenant shall pay, before delinquency, all taxes that are levied and
         assessed against Tenant's personal property installed or located in or
         on the Premises, and that become payable during the term. On demand by
         Landlord, Tenant shall furnish Landlord with satisfactory evidence of
         these payments. "Taxes" shall include assessments, license fees,
         license taxes, business license fees, commercial rental taxes, levies,
         charges, penalties, taxes or similar impositions, imposed by any
         authority having the direct power to tax, including any city, county,
         state, or federal government, or any school, agricultural, lighting,
         drainage, or other improvement or special assessment district thereof,
         as against any legal or equitable interest of Landlord in the Project,
         including but not limited to, the following:

         12.1.1.  any tax on Landlord's right to other income from the Premises
                  or as against Landlord's business of leasing the Premises;

         12.1.2.  any assessment, tax, fee, levy, or charge in substitution,
                  partially or totally, of any assessment, tax, fee, levy, or
                  charge previously included within the definition of real
                  estate tax, including but not limited to, any assessments,
                  taxes, fees, levies, and charges that may be imposed by
                  governmental agencies for such services as fire protection,
                  street, sidewalk and road maintenance, refuse removal and for
                  other governmental services formerly provided without charge
                  to property owners or occupants. It is the intention of Tenant
                  and Landlord that all such new and increased assessments,
                  taxes, fees, levies, and charges be included in Real Property
                  Taxes for the purposes of this Lease;

         12.1.3.  any assessment, tax, fee, levy, or charge allocable to or
                  measured by the area of the Premises or the rent payable
                  hereunder, including, without limitation, any gross income tax
                  or excise tax levied by the State, city, or federal
                  government, or any political subdivision thereof, with respect
                  to the receipt of such rent, or upon or with respect to the
                  possession, leasing, operating, management, maintenance,
                  alteration, repair, use or occupancy by Tenant of the
                  Premises, or any portion thereof, and

         12.1.4.  any assessment, tax, fee, levy, or charge upon this
                  transaction or any document to which Tenant is a party
                  creating or transferring an interest or an estate in the
                  Premises.

12.2.    Whenever possible, Tenant shall cause said trade fixtures, furnishings,
         equipment and personal property to be separately assessed. If, however,
         any taxes on Tenant's personal property are levied against Landlord or
         Landlord's property, or if the assessed value of the Premises is
         increased by the inclusion of a value placed on Tenant's personal
         property, and if Landlord pays the taxes on any of these items or the
         taxes based on the increased assessment of these items, Tenant, on
         demand, shall immediately reimburse Landlord for the sum of the taxes
         levied against Landlord, or the proportion of the taxes resulting from
         the increase in Landlord's assessment. Landlord shall have the right to
         pay these taxes regardless of the validity of the levy.

                                       19

<PAGE>

12.3.    Tenant shall pay to Landlord, in the manner provided in the Article
         titled "Operating Expenses," Tenant's Pro Rata Share, of all real
         property taxes and general and special assessments ("real property
         taxes") levied and assessed against the land, building, and other
         improvements of which the Premises are a part.

12.4.    If any general or special assessment is levied and assessed against the
         Premises which under the Laws then in force may be evidenced by
         improvement or other bonds and may be paid in annual installments, only
         the amount of such annual installment, with appropriate proration for
         any partial year, and interest thereon, shall be included within a
         computation of taxes and assessments levied against the Premises.

12.5.    Tenant shall pay to Landlord any and all excise, privileges and other
         taxes (other than net income and estate taxes) levied or assessed by
         any federal, state or local authority ("taxing authority") upon the
         rent received by Landlord hereunder. Tenant shall also pay to Landlord
         any business tax imposed upon Landlord by any taxing authority whether
         or not such tax is based or measured, in whole or in part, by amounts
         charged to Tenant or received by Landlord from Tenant under this Lease.

12.6.    If at any time during the term of this Lease, any taxing authority
         shall alter the methods and/or standards of taxation and/or assessment
         ("tax plan"), in whole or in part, so as to impose a tax plan in lieu
         of or in addition to the tax plan in existence as of the date of this
         Lease, such taxes or assessments based upon such altered tax plan
         including: (i) any tax, assessment, excise, surcharge, fee, penalty,
         bond or similar imposition ("impositions") whether or not in lieu,
         partially or totally, of any impositions assessed against the land,
         building, and other improvements of which the Premises are a part prior
         to any alterations in the tax plan; (ii) any impositions on Landlord's
         right to rent or other income from the Premises or against Landlord's
         business of leasing the Premises; (iii) any impositions allocable to or
         measured by the area of the Premises or the rent payable hereunder,
         including without limitation any impositions levied by any taxing
         authority with respect to such rental or with respect to the
         possession, leasing, operation, management, maintenance, alteration,
         repair, use or occupancy by Tenant of the Premises or any portion
         thereof; (iv) any impositions upon this Lease transaction or any
         document to which Tenant is a party which creates or transfers any
         interest or estate in or to the Premises; and (v) any special,
         unforeseen or extraordinary impositions however described, shall also
         be considered taxes for the purposes of this Lease.

12.7.    Tenant's liability to pay real property taxes shall be prorated on the
         basis of a 365-day year to account for any fractional portion of a
         fiscal year included in the term at its commencement and expiration.

12.8.    If at any time during the term of this Lease any of Tenant's Taxes are
         levied against Landlord or Landlord's property, or if the assessed
         value of the Project is increased by the inclusion therein of a value
         placed upon such personal property or fixtures of Tenant or upon such
         improvements made to the Premises, Landlord shall not be obligated to
         pay such Tenant's Taxes. If Landlord pays such Tenant's Taxes so levied
         or so based upon such increased assessment, which Landlord shall have
         the right to do regardless of the validity thereof, but only under
         protest if requested by Tenant in writing, then Tenant shall, within
         ten (10) days after receipt of Landlord's written demand for payment
         thereof, repay to Landlord such Tenant's Taxes so paid by Landlord, or
         the portion of such Tenant's Taxes resulting from such increase in the
         assessment. However, in any such event, Tenant shall have the right, in
         the name of the Landlord and with Landlord's full cooperation, but
         without any cost to Landlord, to bring suit in any court of competent
         jurisdiction to recover the amount of any such Tenant's Taxes so paid,
         any amount so recovered to belong to Tenant. The portion of any such
         Tenant's Taxes to be paid by Tenant pursuant to this Section shall be
         determined by Landlord from the respective values assigned in the
         assessor's worksheets or from such other best information as may be
         reasonably available to Landlord.

                                       20

<PAGE>

13. MAINTENANCE.
    ------------

13.1.    Except as otherwise provided in this Lease, including, but not limited
         to, this Article and the Articles titled "Destruction" and
         "Condemnation," Tenant shall, at its sole expense, maintain the entire
         Premises (including, but not limited to, any and all appurtenances
         thereto wherever located, including the interior surfaces of the
         exterior walls, the exterior and interior portions of all doors, door
         frames, door checks, other entrances, interior portions of windows,
         window frames, plate glass, suite fronts, signs, all plumbing and
         sewage fixtures and equipment, within the Premises, fixtures, walls,
         floors, ceiling, carpets, drapes, painted surfaces, wall coverings,
         cabinets, shelves, whether any such work or repair, replacement,
         renewal, or restoration is interior or exterior to the Premises, is
         foreseen or unforeseen, or is ordinary or extraordinary) in good
         tenantable condition and repair as reasonably determined by Landlord,
         including without limitation all additions and improvements made by or
         for the Tenant as well as all items of maintenance, alteration, or
         reconstruction that may be required by a governmental agency having
         jurisdiction thereof.

13.2.    If Tenant fails, refuses, or neglects to commence and complete repairs
         promptly and adequately, to remove any liens, to pay any cost or
         expense, to reimburse Landlord, or otherwise to perform any act or
         fulfill any obligation required of Tenant, Landlord may make or
         complete any such repairs, remove such lien, pay any such cost or
         expense, perform the same without prior notice to, but at the sole
         expense of, Tenant. Tenant shall promptly reimburse Landlord for all
         expenses of Landlord for all expenses of Landlord thereby incurred,
         including any administrative fee of fifteen percent (15%), within ten
         (10) days after receipt by Tenant from Landlord of a statement setting
         forth the amount of such expenses. Landlord's rights and remedies
         pursuant to this Section shall be in addition to any and all rights and
         remedies provided under this Lease or at law and shall not affect a
         waiver of Tenant's obligations.

13.3.    Landlord shall not have any responsibility to maintain the Premises.
         Tenant, as a material part of the consideration rendered to Landlord,
         in entering into this Lease, hereby waives the provisions of the
         California Civil Code with respect to Landlord's obligation for
         tenantability of the Premises and Tenant's right to make repairs and
         deduct the expenses of such repairs from rent.

13.4.    Except as otherwise set forth in this Lease, Tenant shall, at its sole
         cost, keep and maintain all window and door glass, utilities, fixtures
         and mechanical equipment used by Tenant in good order, condition and
         repair.

13.5.    Landlord shall, at Tenant's sole expense, arrange for the maintenance
         of any heating and/or air conditioning units servicing the Premises
         with a reputable maintenance service person or entity. Tenant shall pay
         the costs of said maintenance as additional Rent. In the event that any
         heating and/or air conditioning unit services more than one Tenant,
         Tenant shall pay a reasonable proportion of the cost of the maintenance
         (including labor and parts), which proportion shall be determined by
         Landlord based upon Tenant's proportionate share of the square footage
         of the area serviced by any such unit.

13.6.    Landlord shall keep in good condition and repair the roof and
         structural components of the Premises except when such maintenance and
         repair is necessitated by reason of Tenant's negligence, alteration of
         or addition to the Premises, or breach of any term or condition of this
         Lease. All costs of Landlord's maintenance and repairs shall be borne
         by Tenant and prorated in the manner set forth in the Article titled
         "Operating Expenses." Landlord shall have no obligation to make any
         such repairs until Landlord has received written notice from Tenant
         with respect to the need for such repairs, and Landlord shall not be
         deemed to be in default with respect to its obligation to repair unless
         and until Landlord has (i) received said written notice and (ii) failed
         to make such repairs within a reasonable period following the receipt
         of said notice. Landlord shall, after receiving written notice,
         exercise due diligence in making such repairs. Tenant hereby waives any
         provisions of any and all Laws permitting Tenant to make repairs at
         Landlord's expense. Landlord shall enforce any express construction
         warranties for the benefit of Tenant to the extent that they are
         available. There shall be no abatement of rent and no liability of
         Landlord under any circumstances by reason of any loss of or any injury
         to property, lost profits, or for injury to or interference with
         Tenant's business arising from the making of or Landlord's failure to
         make any repairs, alterations, or improvements.

                                       21

<PAGE>

13.7.    Landlord shall, as part of the Operating Expenses, repair and maintain
         the Project Enhancement Areas And Unit Shared Use Areas in a neat,
         clean and orderly condition and repair, properly lighted and
         landscaped, and shall operate the Project, in Landlord's sole
         discretion, as a first class industrial/office/commercial real property
         development. All expenses in connection with the Project Enhancement
         Areas And Unit Shared Use Areas shall be charged and prorated in the
         manner set forth in the Article titled "Operating Expenses." It is
         understood and agreed that the phrase "expenses in connection with said
         Project Enhancement Areas And Unit Shared Use Areas" shall include, but
         shall not be limited to, all sums expended in connection with said
         Project Enhancement Areas And Unit Shared Use Areas for all general
         maintenance and repairs, resurfacing, painting, restriping, cleaning,
         sweeping and janitorial services; maintenance and repair of sidewalks,
         curbs, and Building signs (other than Tenant's sign), sprinkler
         systems, planting and landscaping; lighting and other utilities;
         painting of all exterior surfaces of the Building or buildings in the
         Project; directional signs and other markers and bumpers; maintenance
         and repair of any fire protection systems, automatic sprinkler systems,
         lighting systems, storm drainage systems and any other utility systems;
         personnel to implement such service, including, if Landlord deems
         necessary, the cost of security guards and/or all costs and expenses
         pertaining to a security alarm system for the tenants; police and fire
         protection services; personal property taxes levied on or attributable
         to personal property owned by Landlord which is consumed in the
         operation or maintenance of the Project Enhancement Areas And Unit
         Shared Use Areas; depreciation and maintenance on operating machinery
         and equipment (if owned) and rental paid for such machinery and
         equipment (if rented); any parking charges, surcharges or any other
         costs levied or assessed by local, state or federal governmental
         agencies in connection with the use of parking facilities; fees for
         required licenses and permits; adequate public liability and property
         damage insurance on the Project Enhancement Areas And Unit Shared Use
         Areas; reserves for exterior painting and other appropriate reserves;
         and a reasonable allowance to Landlord for Landlord's supervision of
         the said Project Enhancement Areas And Unit Shared Use Areas, which
         cost shall not exceed three percent (3%) of the total of the
         aforementioned expenses for said calendar year. Landlord may, however,
         cause any or all of said services to be provided by an independent
         contractor or contractors.

13.8.    Landlord's exercise of any right or obligation to maintain or repair
         the Premises, Project Enhancement Areas And Unit Shared Use Areas
         and/or other areas of the Project shall not entitle Tenant to any
         abatement of rent, compensation or damages for injury, loss or
         inconvenience occasioned thereby.

13.9.    Tenant waives the right to make repairs at Landlord's expense under any
         Law, including, but not limited to, Sections 1932, 1933, 1941, and 1942
         of the California Civil Code.

13.10.   Tenant, at its own expense, shall make all repairs to the Project that
         are made necessary by any breach of this Lease or any misuse or neglect
         by:

         13.10.1. Tenant or any of its officers, agents, employees, contractors,
                  licensees, or subtenants; or

         13.10.2. Any visitors, patrons, guests, or invitees of Tenant or its
                  subtenant.

                                       22

<PAGE>

13.11.   All such repairs shall be at lest equal in quality to the original
         work, shall be made only by a licensed, bonded contractor approved in
         advance by Landlord, and shall be made only at such time or times as
         shall be approved by Landlord. Landlord may impose reasonable
         restrictions and requirements with respect to such repairs. At the time
         of the expiration of the tenancy created herein, Tenant shall surrender
         the Premises in good order, condition, and repair, ordinary wear and
         tear excepted. Tenant shall not commit or suffer to be committed any
         waste in or upon the Premises.

13.12.   Tenant shall, at its own expense, keep and maintain the Premises in a
         clean, sanitary, and safe condition in accordance with all Laws.

13.13.   Tenant shall, at its own expense, install and maintain such fire
         extinguishers and other fire protection devices (other than sprinkler
         systems) as may be required in the Premises from time to time by any
         agency having jurisdiction and/or by the insurance underwriters
         insuring the Building

14. UTILITIES AND SERVICES.
    -----------------------
14.1.    Except as otherwise provided in this Article, Tenant shall make all
         arrangements for and pay for all utilities and services furnished to or
         used by it, including, without limitation, gas, electricity, water,
         telephone service, and trash collection, and for all connection
         charges. If Tenant requires or utilizes more water or electrical power
         than Landlord considers reasonable or normal for general office use,
         light manufacturing, or warehousing, Landlord may at its option (a)
         require Tenant to pay, as additional rent, the cost, as fairly
         determined by Landlord, incurred by such extraordinary usage and (b)
         install separate meter(s) or monitors for the Premises, at Tenant's
         sole expense.

14.2.    In the event that Landlord furnishes any utilities (referred to herein
         as the "Jointly Metered Utilities"), Landlord shall only be required to
         provide heating, air conditioning, and ventilation during normal
         business hours. Normal business hours shall be defined from time to
         time by Landlord in the rules and regulations.

14.3.    Tenant shall pay to Landlord, as additional rent, the cost of all
         Jointly Metered Utilities in the following manner:

         14.3.1.  Tenant shall pay to Landlord, as additional rent, on the first
                  day of each calendar month of the term of this Lease, an
                  amount equal to Landlord's best estimate (based on Landlord's
                  budgeted figures) of all Jointly Metered Utilities based upon
                  Tenant's proportionate share of the occupied square footage of
                  the building or buildings serviced by such meter and any
                  extraordinary uses which may be made by Tenant;

         14.3.2.  Within sixty (60) days following the end of each calendar
                  year, Landlord shall furnish Tenant with a statement covering
                  the calendar year just expired (certified as correct by an
                  authorized representative of Landlord, or if requested by a
                  majority of the tenants in the Building by a certified public
                  accountant) showing (i) the total cost of Jointly Metered
                  Utilities; (ii) the amount of Tenant's proportionate share of

                                       23

<PAGE>

                  the Jointly Metered Utilities for the calendar year; and (iii)
                  the payments made by Tenant with respect to such period as set
                  forth in this Article. If Tenant's payments exceed Tenant's
                  proportionate share of such costs, Tenant shall be entitled to
                  offset the excess against the next payments due Landlord as
                  set forth in this Article. However, if Tenant's proportionate
                  share of the Jointly Metered Utilities exceeds Tenant's
                  payments, Tenant shall pay Landlord the deficiency within ten
                  (10) days after receipt of such statement. In addition,
                  Tenant's proportionate share of the total Jointly Metered
                  Utilities for the previous calendar year shall be used as an
                  estimate for the current year and paid to Landlord pursuant to
                  the provisions of this Article.

14.4.    Landlord shall not be liable for, and Tenant shall not be entitled to,
         any reduction of rental by reason of Landlord's failure to furnish any
         utilities when such failure is caused by accident, breakage, repairs,
         strikes, lockouts or other labor disturbances or labor disputes of any
         character, or by any other cause, similar or dissimilar, beyond the
         reasonable control of Landlord. No such failure or interruption shall
         entitle Tenant to terminate this Lease. Landlord shall not be liable,
         under any circumstances for a loss of or injury to property, however
         occurring, through or in connection with or incidental to failure to
         furnish any of the foregoing. Wherever heat generating machines or
         equipment are used in the Premises which affect the temperature
         otherwise maintained by the air conditioning system, Landlord reserves
         the right to install supplementary air conditioning units in the
         Premises and the cost thereof, including the cost of installation, and
         the cost of operation and maintenance thereof shall be paid by Tenant
         to Landlord upon demand by Landlord.

14.5.    Tenant may, at its sole expense, elect to install its own meter for any
         utilities which are jointly metered by written notice delivered to
         Landlord one (1) month prior to the initiation by Tenant of any work to
         effectuate such change.

14.6.    Landlord shall, during all normal business hours, maintain and keep
         lighted the common stairs, common entries, and toilet rooms if any, in
         the building of which the Premises are a part.

14.7.    Landlord shall not be liable for, and Tenant shall not be entitled to,
         any abatement or reduction of rent by reason of Landlord's failure to
         furnish any utilities when such failure is caused by accident; act of
         God; breakage: repairs; strikes; lockouts or other labor disturbances
         or labor disputes of any character; any Law, moratorium, or other
         action of any federal, state, county, or municipal authority; inability
         despite the exercise of reasonable diligence by Landlord to obtain
         electricity, water, or fuel; or by any other cause, similar or
         dissimilar, beyond the reasonable control of Landlord. No such failure
         or interruption shall entitle Tenant to terminate this Lease. Also, no
         eviction of Tenant shall result from such failure and Tenant shall not
         be relieved from the performance of any covenant or agreement in this
         Lease because of such failure. Landlord shall not be liable, under any
         circumstances for a loss of or injury to property, however occurring,
         through or in connection with or incidental to failure to furnish any
         of the foregoing. Wherever heat generating machines or equipment are
         used in the Premises which affect the temperature otherwise maintained
         by the air conditioning system, Landlord reserves the right to install
         supplementary air conditioning units in the Premises and the cost
         thereof, including the cost of installation, and the cost of operation
         and maintenance thereof shall be paid by Tenant to Landlord upon demand
         by Landlord.

14.8.    Landlord reserves the right to stop providing plumbing, ventilation,
         air conditioning, electric, water, or any other service provided by
         Landlord under this Lease, when necessary by reason of accident or
         emergency or for repairs, alterations or improvements, which in the
         reasonable judgment of Landlord are desirable or necessary to be made,
         until said repairs, alterations, or improvements shall have been
         completed.

                                       24

<PAGE>

15. INDEMNITY AND EXCULPATION.
    --------------------------
15.1.    Tenant is liable for, and shall indemnify, protect, defend, and hold
         Landlord harmless from and against, any and all loss, claims, actions,
         suits, liabilities, judgments, costs, and expenses (including
         attorneys' fees) by reason of the following:

         15.1.1.  injury to any person or property, from whatever cause, all or
                  in part connected with the condition or use of the Premises or
                  the improvements or personal property located therein,
                  including, but not limited to, any liability for injury to the
                  person or property of Tenant, its agents, officers, employees,
                  invitees, or trespassers;

         15.1.2.  any activity, work or thing done, permitted or suffered by
                  Tenant in or about the Premises, the Project or the Common
                  Area; and

         15.1.3.  any breach or default in the performance of any obligation to
                  be performed by Tenant under the terms of this Lease; and

         15.1.4.  any act, neglect, fault or omission of Tenant or of its agents
                  or employees, except to the extent caused by or resulting from
                  the negligence or willful misconduct of Landlord or its
                  employees in the operation or maintenance of the Premises, the
                  Building, or the Project.

15.2.    Tenant shall, at Tenant's expense, resist and defend any such action,
         suit, or proceeding or cause the same to be resisted or defended by
         counsel designated by Tenant and approved by Landlord in writing.
         Tenant's obligation hereunder shall survive the termination of this
         Lease, if the incident requiring such defense occurred during the Lease
         term.

15.3.    Neither Landlord nor any manager, member, partner, director, officer,
         agent or employee of Landlord shall be liable to Tenant or its
         partners, directors, officers, contractors, agents, employees,
         invitees, sublessees, licensees for any loss, injury or damage to or
         death of Tenant or to any other person, or to its or their property,
         goods, wares, and merchandise in, upon, and about the Premises
         irrespective of the cause of such injury, damage or loss, except to the
         extent caused by or resulting from the negligence or willful misconduct
         of Landlord or its employees in the operation or maintenance of the
         Premises, the Building, or the Project. Further, neither Landlord nor
         any manager, member, partner, director, officer, agent or employee of
         Landlord shall be liable (i) for any such damage caused by other
         tenants or persons in or about the Project, or caused by quasi-public
         work; or (ii) for consequential damages arising out of any loss of the
         use of the Premises of any equipment or facilities therein by Tenant or
         any person claiming through or under Tenant. Tenant, as a material part
         of the consideration to Landlord, hereby assumes all risk of all such
         damage to property or injury or death to person in, upon or about the
         Premises from any cause whatsoever. Except as provided in this Section,
         Tenant hereby waives all its claims in respect thereof against
         Landlord.

15.4.    All of Tenant's releases and indemnification, defense, and hold
         harmless obligations under this Lease survive the expiration or other
         termination of this Lease, without limitation.

15.5.    Any diminution or shutting off of light, air or view by any structure
         which may be erected on lands adjacent to the Project shall in no way
         affect this Lease or impose any liability on Landlord.

                                       25

<PAGE>

16. INSURANCE.
    ----------
16.1.    Landlord shall maintain, at Tenant's expense, a policy or policies of
         insurance, as Landlord reasonably deems necessary from time to time or
         is required by Landlord's lenders, protecting against the following:

         16.1.1.  Fire and other perils normally included in the extended
                  coverage insurance with special form, to the extent of at
                  least one hundred percent (100%) of the insurable value of the
                  Building and other improvements on the Premises exclusive of
                  trade fixtures, equipment, goods and materials belonging to
                  Tenant;

         16.1.2.  Rent loss insurance to the extent of at least one hundred
                  percent (100%) of the annual gross rentals from the Project of
                  which the Premises constitutes a part; and

         16.1.3.  Public liability and property damage insurance and products
                  liability insurance with respect to Project Enhancement Areas
                  And Unit Shared Use Areas for the joint benefit of Landlord
                  and Tenant: (i) in amounts not less than $1,000,000 for bodily
                  injury or death to any one person, and in an amount not less
                  than $2,000,000 per occurrence; and (ii) for property damage
                  in an amount of not less than $1,000,000 per occurrence. Said
                  amounts shall be subject to adjustment every Three (3) years
                  to the then prevailing limits normally required for operations
                  of the type conducted by Tenant on the Premises.

16.2.    Tenant shall pay to Landlord, as additional rent, and in the manner
         provided in the Article titled "Operating Expenses," Tenant's Pro Rata
         Share of the cost of insurance required in Sections 1 and 6 of this
         Article.

16.3.    Tenant shall maintain in force and effect at all times during the term
         of this Lease, and at all times during any early entry whereby Tenant
         desires to perform any work or store any property in the Premises, a
         policy or policies of fire, extended coverage, and special extended
         coverage ("all risk") insurance with respect to Tenant's fixtures,
         furniture, personal property, equipment, goods and materials located in
         the Premises, sprinkler leakage, energy systems coverage, coverage for
         water damage to contents, and earthquake sprinkler leakage, with
         vandalism and malicious mischief endorsements to the extent of at least
         one hundred percent (100%) of their insurable value, including all
         leasehold improvements and betterments to the Premises installed by or
         paid for by Tenant. Coverage shall also include all personal property
         of third parties to the extent any such fixtures and personal property
         are used or located in the Premises. During the term of this Lease, the
         proceeds of any such policy or policies of fire insurance shall be used
         solely for the repair or replacement of the fixtures or equipment so
         insured. Landlord shall have no claim or interest in said insurance and
         shall sign all documents necessary to effectuate the settlement of any
         claim or loss by Tenant.

16.4.    Tenant shall maintain in force and effect at all times during the term
         of this Lease, with an insurance company acceptable to Landlord, a
         comprehensive general liability insurance policy with respect to the
         Premises, for the joint benefit of Landlord and Tenant for personal
         injury in amounts of not less than $1,000,000 for bodily injury or
         death to any one person, in an amount not less than $3,000,000 per
         occurrence, for property damage in an amount of not less than

                                       26

<PAGE>

         $1,000,000 per occurrence, and in an amount not less than $3,000,000
         general aggregate on a per location basis. Such insurance shall also
         include blanket contractual coverage covering Tenant's indemnity
         obligations hereunder, public liability, broad form property damage,
         products liability, completed operations, legal liability in excess of
         recovery obtained by Landlord under any insurance maintained by
         Landlord, liquor liability or host liquor liability, if Tenant serves
         liquor in the Premises, and owned and non-owned automobile coverages.
         The amounts of such public liability insurance shall be increased from
         time to time as Landlord may reasonably determine or as required by any
         lender with an interest in the Project. Such insurance must include:
         (a) specific coverage provisions or endorsements naming Landlord and
         Property Manager as additional insureds by an "Additional Insured -
         Managers or Lessors of Premises" endorsement (or equivalent coverage or
         endorsement); and (b) provisions stating that the insurer has a duty to
         defend all insureds under the policy (including additional insureds),
         and that defense costs are paid in addition to, and do not deplete, the
         policy limits. Tenant shall furnish Landlord with a certificate of
         insurance with respect to such policy or policies prior to entry of the
         Premises.

16.5.    Tenant shall maintain in force and effect at all times during the term
         of this Lease with an insurance company acceptable to Landlord,
         workers' compensation insurance, including employer's liability
         coverage, as required by any and all Laws.

16.6.    Tenant shall not keep, use, sell or offer for sale in or upon the
         Premises any article that may be prohibited by any insurance policy
         periodically in force covering the Project. If Tenant's occupancy or
         business in, or on, the Premises, whether or not Landlord has consented
         to the same, results in any increase in premiums for the insurance
         periodically carried by Landlord with respect to the Project or any
         portion thereof, Tenant shall pay any such increase in premiums as
         additional rent within ten (10) days after being billed therefore by
         Landlord. In determining whether increased premiums are a result of
         Tenant's use of the Premises, a schedule issued by the organization
         computing the insurance rate on the Project or the Tenant Improvements
         showing the various components of such rate, shall be conclusive
         evidence of the several items and charges which make up such rate.
         Tenant shall promptly comply with all reasonable requirements of the
         insurance authority or any present or future insurer relating to the
         Premises.

16.7.    Landlord and Tenant hereby mutually release each other from liability
         and waive all right to recover against each other (and against the
         members, officers, employees, and agents of the other party) from any
         loss or damage from perils insured against under their respective fire
         insurance policies, including any extended coverage and endorsements to
         said policies. However, this Section shall be inapplicable if it would
         have the effect, but only to the extent that it would have the effect,
         of invalidating any insurance coverage of Landlord or Tenant. The
         Parties shall, in obtaining the policies of insurance that they are
         required to maintain under this Lease, give notice to their respective
         insurance carriers that the foregoing mutual waiver of subrogation is
         contained in this Lease, and each shall obtain, if available, from
         their respective insurance companies, a waiver of any right of
         subrogation which said insurance company may have against the Landlord
         or the Tenant, as the case may be. In the event that the insurance
         company of Tenant does not waive the right of subrogation against
         Landlord and its insurance company, Tenant shall (i) maintain during
         the term of this Lease fire legal liability coverage with respect to
         the Premises and (ii) shall pay to Landlord upon demand, Landlord's
         cost incurred in securing fire legal liability protecting Landlord in
         the event of the destruction of Tenant's property.

                                       27

<PAGE>

16.8.    Landlord may maintain, at the Tenant's expense (pro rated in the manner
         described in the Article titled "Operating Expenses"), boiler and
         machinery insurance on all boilers, heating equipment, air conditioning
         equipment, and other pressure vessels and systems that may be located
         in, on, or about the Premises. Tenant shall reimburse Landlord for the
         insurance provided by Landlord under this Section in accordance with
         the terms set forth in Section 2 of this Article.

16.9.    All the insurance required under this Lease shall:

         16.9.1.  Be issued by insurance companies authorized and licensed to do
                  business in the State of California, with a General
                  Policyholders Rating of "A", and a financial rating of at
                  least superior status as rated in the most recent edition of
                  Best's Insurance Reports;

         16.9.2.  Be issued as a primary policy;

         16.9.3.  Contain an endorsement requiring one (1) month written notice
                  from the insurance company to both Landlord and Landlord's
                  lender before cancellation or change in the coverage, scope,
                  or amount of any policy.

         16.9.4.  Be issued by a responsible carrier reasonably acceptable to
                  Landlord.

16.10.   Tenant may elect to have (i) reasonable deductibles not to exceed
         $2,000 in connection with the policies of insurance required to be
         maintained by Tenant under this Section and (ii) the insurance coverage
         required to be maintained under this Lease by Tenant provided under
         "umbrella" policies of insurance provided that Tenant obtains a "per
         project, per location endorsement".

16.11.   Tenant shall deliver to Landlord at least ten (10) days prior to the
         time such insurance is first required to be carried by Tenant, and
         thereafter at least thirty (30) days prior to expiration of each such
         policy, certificates of insurance evidencing the above coverages with
         limits not less than those specified above and certified copies of all
         required endorsements. With the exception of Workers Compensation, such
         certificates and the policies they refer to, shall (i) be endorsed to
         name Landlord and each of its , affiliates, lenders and agents so
         designated by Landlord from time-to-time as additional insureds, (ii)
         expressly provide that the interests of such persons therein shall not
         be affected by any breach by Tenant of any policy provision for which
         such certificates or endorsements evidence coverage, (iii) be on an
         occurrence basis and (iv) contain a cross-liability endorsement or
         severability of interest clause acceptable to Landlord. A copy of the
         additional insured endorsement for policies currently in effect shall
         be attached to the certificates as required above. Further, each such
         certificate and endorsement shall expressly provide that no less than
         thirty (30) days' prior written notice shall be given Landlord in the
         event of material alteration or cancellation of the coverage evidenced
         by such certificate or endorsement. The words "Carrier agrees to
         provide such notice" shall be used on Certificates of Insurance
         provided to Landlord. Certificates of insurance containing such phrases
         as "Carrier shall endeavor to notify Certificate Holder"..." shall not
         be considered acceptable for the purposes of this provision. The
         insurance which Tenant is required to maintain in force and effect
         under this Agreement shall be the primary insurance as respects
         Landlord (and any other additional insureds designated by Landlord) and
         not contributory with any other available insurance. The certificates
         of insurance evidencing the liability insurance coverage shall contain
         an endorsement to such effect.

                                       28

<PAGE>

16.12.   If on account of a failure of Tenant to comply with the provisions of
         the above Section, Landlord is adjudged a co-insurer by its insurance
         carrier, then any loss or damage Landlord shall sustain by reason
         thereof shall be borne by Tenant and shall be immediately paid by
         Tenant as additional rent upon receipt of a bill therefore and evidence
         of such loss or damage.

16.13.   In no event shall the limits of any coverage maintained by Tenant
         pursuant to this Article be considered as limiting Tenant's liability
         under this Lease.

16.14.   If Tenant fails to maintain any insurance required hereunder, Landlord
         may procure such policies for Tenant's account, and the cost thereof,
         plus an administrative fee of fifteen percent (15%), shall be
         immediately due and payable by Tenant as additional rent.

17. ALTERATIONS.
    ------------
17.1.    Tenant shall not make any alterations, additions or improvements
         (collectively, "alterations") to the Premises except as provided
         herein. Any alterations, additions or improvements desired by Tenant
         shall be made, at Tenant's expense only after Tenant submits detailed
         final plans and drawings to Landlord and obtains Landlord's consent to
         alterations and approval of such plans Work shall be performed only by
         contractors or mechanics approved by Landlord, which approval shall not
         be unreasonably withheld. Tenant shall construct such Alterations in
         accordance with the plans and specifications approved by Landlord, and
         shall not amend or modify such plans and specifications without
         Landlord's prior written consent. If the proposed change requires the
         consent or approval of the holder of a mortgage encumbering the
         Project, such consent or approval must be secured prior to the
         construction of such Alteration. Tenant agrees that there shall be no
         construction of partitions or other obstructions which might interfere
         with Landlord's free access to mechanical installations or service
         facilities of the Building or interfere with the moving of Landlord's
         equipment to or from the enclosures containing said installations or
         facilities. All such work shall be done at such times and in such
         manner as Landlord may from time to time reasonably designate. Any such
         alterations, additions or improvements shall be in conformity with all
         Laws and in full compliance with the requirements of any mortgages
         encumbering the Project and any insurance policies relating to the
         Project and excepting movable furniture, trade fixtures, machinery and
         other trade equipment shall become part of the realty and belong to
         Landlord. However, Landlord can elect, within one (1) month before
         expiration of the term, or within one (1) month after expiration or
         termination of the term, to require Tenant to remove any alterations,
         additions or improvements Tenant has made to the Premises. If Landlord
         so elects, Tenant at its sole cost shall restore the Premises to the
         condition designated by Landlord in its election, before the last day
         of the term, or within thirty (30) days of Landlord's election,
         whichever is later.

17.2.    Before commencing any work, whether or not Landlord's consent is
         required, Tenant shall give Landlord at least ten (10) days' written
         notice of the proposed commencement of such work to allow Landlord to
         post and record, at Tenant's expense, notices of non-responsibility.
         Tenant shall, if required by Landlord, secure at Tenant's own cost and
         expense, appropriate insurance and, if the cost of the work exceeds
         $10,000, a completion and lien indemnity bond satisfactory to Landlord
         for any said work. Tenant further covenants and agrees that any
         mechanic's lien or other lien filed against the Premises or against the
         Building for work claimed to have been done for, or materials claimed
         to have been furnished to, Tenant will be discharged by Tenant as
         provided in the Article titled "Mechanics Liens" below. Upon completion
         of any work, Tenant shall record a notice of completion sufficient
         under applicable mechanic's' lien Laws.

17.3.    Tenant may install trade fixtures, machinery, or other trade equipment
         in conformance with all Laws and in full compliance with the
         requirements of any mortgages encumbering the Project and any insurance
         policies relating to the Project. Tenant may remove any of such trade
         fixtures or machinery upon the expiration or termination of this Lease
         if Tenant is not in default under the terms and conditions of this
         Lease. If Tenant shall fail to remove all of its effects from the
         Premises upon termination of this Lease for any cause whatsoever, the
         provisions under the Article titled "Surrender of Premises" of this
         Lease shall apply.

                                       29

<PAGE>

17.4.    In the event that Tenant installs trade fixtures, machinery or other
         trade equipment, Tenant shall return the Premises on expiration or
         termination of this Lease to the same condition as existed at the date
         of entry, reasonable wear and tear excepted. In any event, Tenant shall
         repair any damage resulting from the removal of trade fixtures,
         machinery or other trade equipment of Tenant.

17.5.    Any electrical wiring, conduit, junction boxes and outlets installed by
         Tenant shall comply with all building codes and shall become the
         property of Landlord upon termination of this Lease.

17.6.    If Tenant fails to promptly commence and diligently pursue completion
         of removal and restoration of alterations, additions, or improvements,
         Tenant shall pay to Landlord the cost thereof, including a reasonable
         charge for Landlord's overhead, upon Landlord's demand. If Tenant has
         not removed such items and completed restoration of the Premises upon
         the expiration or earlier termination of this Lease, Tenant shall
         continue to pay rent for the portion of the Premises not completely
         vacated.

18. MECHANICS' LIENS.
    -----------------
18.1.    Tenant shall pay, when due, all costs for construction done by it or
         caused to be done by it on the Premises as permitted by this Lease.
         Tenant shall keep the building, other improvements, and land free and
         clear of all mechanics' liens resulting from construction or other work
         done by or for Tenant. Tenant hereby indemnifies and holds Landlord
         harmless against loss, damage, attorney's fees and all other expenses
         on account of claims of lien of laborers or materialmen or others for
         work performed or materials or supplies furnished for Tenant or persons
         claiming under it. If Tenant shall not, within fifteen (15) days
         following the imposition of any such liens, cause such lien to be
         released of record by payment or posting of a proper bond satisfactory
         to Landlord, then Landlord shall have, in addition to all other
         remedies provided herein or by law, the right to cause such lien to be
         released by such reasonable means as Landlord shall deem proper,
         including payment and/or defense against the claim giving rise to such
         lien. All sums paid by Landlord and all expenses incurred by it in
         connection therewith, together with an administrative fee of fifteen
         percent (15%), shall create automatically an obligation of Tenant to
         pay an equivalent amount to Landlord as Rent, which rent shall be so
         payable by Tenant on Landlord's demand therefore with a late charge (as
         defined under the article titled "Late Charges") and interest accruing
         from the date paid or incurred by Landlord until reimbursed to Landlord
         by Tenant.

18.2.    Tenant shall have the right to contest the correctness or the validity
         of any such lien if, immediately on demand by Landlord, Tenant procures
         and records a lien release bond issued by a corporation authorized to
         issue surety bonds in California in an amount equal to one and one-half
         times the amount of the claim of lien. The bond shall meet the
         requirements of the California Civil Code and shall provide for the
         payment of any sum that the claimant may recover on the claim (together
         with costs of suit, if it recovers in the action).

19. DESTRUCTION.
    ------------
19.1.    In the event of total or partial destruction of the Building and/or the
         Premises, Landlord may elect, as soon as reasonably possible
         thereafter, to commence repair, reconstruction and restoration of the
         Building and/or the Premises, which repair shall be completed as soon
         as reasonably possible. In that event, this Lease shall remain in full
         force and effect. However, within sixty (60) days after the date of
         such damage or destruction, Landlord, in Landlord's sole and absolute
         discretion, and regardless of the availability of insurance proceeds,
         may elect not to so repair, reconstruct or restore the Building and/or
         the Premises. In that event, this Lease shall terminate as of the date
         of such damage or destruction.

                                       30

<PAGE>

19.2.    In the event of a partial damage to or destruction of the Building
         and/or the Premises, to an extent not exceeding twenty-five percent
         (25%) of the full insurable value thereof, Landlord shall commence and
         proceed with reasonable diligence with the work of repair,
         reconstruction and restoration if: (i) the damage thereto is such that
         the Building and/or Premises may be repaired, reconstructed or restored
         within a period of ninety (90) days from the date of the happening of
         such casualty; and (ii) if Landlord receives insurance proceeds
         sufficient to cover the cost of such repairs. In that event, this Lease
         shall continue in full force and effect. Otherwise, Landlord, in
         Landlord's sole and absolute discretion, may either: (i) elect to so
         repair, reconstruct or restore, in which case the Lease shall continue
         in full force and effect; or (ii) Landlord may elect not to repair,
         reconstruct or restore, in which case the Lease shall terminate as of
         the date of such partial damage or destruction. Under any of the
         conditions of this Section, Landlord shall give written notice to
         Tenant of its intention within said ninety (90) day period.

19.3.    If any partial damage or destruction is due to any cause other than
         fire or other peril covered by extended coverage insurance, Landlord
         may, by written notice to Tenant within sixty (60) days after the date
         of such damage or destruction, elect to terminate this Lease as of the
         date of such damage or destruction.

19.4.    If Landlord determines in Landlord's reasonable opinion that Tenant
         cannot be provided with reasonable use of and access to the repaired
         Premises or the Building within nine (9) months (or three (3) months
         during the last year of the Lease term) after the date of any damage or
         destruction thereto, Tenant shall have the right to terminate this
         Lease by written notice delivered to Landlord within fifteen (15) days
         after the date of Landlord's determination, provided that the damage or
         destruction was not due to the negligence or willful misconduct of
         Tenant or its agents, employees or invitees.

19.5.    Notwithstanding anything to the contrary contained in this Article,
         Landlord shall not have any obligation whatsoever to repair,
         reconstruct or restore the Premises when the damage or destruction
         resulting from any casualty occurs during the last twelve (12) months
         of the term of this Lease. Landlord may elect to terminate this Lease
         as of the date the damage occurred, regardless of the sufficiency of
         any insurance proceeds. However, if Tenant has any unexpired options to
         extend the term of this Lease, if Tenant delivers written notice to
         Landlord exercising such option within five (5) days after such
         termination by Landlord, this Lease shall remain in effect subject to
         the remaining terms of this Article.

19.6.    Tenant shall not be released from any of its obligations under this
         Lease except to the extent and upon the conditions expressly stated in
         this Article. Landlord shall not be liable for any failure to make any
         such repairs if such failure is caused by any Unavoidable Delays (as
         defined below). However, if such failure shall persist for more than
         one hundred eighty (180) days, either party may, by written notice to
         the other, terminate this Lease as of the date of the occurrence of
         such damage.

19.7.    Upon any termination of this Lease under any of the provisions of this
         Article, the parties shall be released without further obligation to
         the other arising after the date possession of the Premises is
         surrendered to Landlord.

                                       31

<PAGE>

19.8.    If Landlord is required or elects to restore the Premises as provided
         in this Article, Landlord shall prosecute the same with reasonable
         diligence to completion. However, Landlord shall not be required to
         restore alterations or improvements made by Tenant, Tenant
         Improvements, Tenant's Trade Fixtures, or Tenant's Personal Property.
         Such excluded items are the sole responsibility of Tenant to restore.
         Without interfering with Landlord's repair and restoration process,
         Tenant shall commence and diligently prosecute to completion the repair
         and restoration of such alterations and improvements and shall replace
         all Tenant Improvements, Tenant's Trade Fixtures, or Tenant's Personal
         Property promptly upon delivery of the Premises to Tenant.

19.9.    If Landlord elects to repair the damage, and, if the damage was due to
         the negligence or willful misconduct of Tenant, Tenant shall pay
         Landlord an amount equal to the difference between the actual cost of
         repair and any insurance proceeds received by Landlord. If the
         Premises, the Building or the Project is damaged, and such damage is of
         the type insured against under the fire and special form property
         damage insurance maintained by Landlord hereunder, the cost of
         repairing said damage, up to the amount of the deductible under said
         insurance policy, shall be included as a part of Operating Expenses.

19.10.   Landlord and Tenant hereby waive the provisions of any statutes or
         court decisions that relate to the abatement of rent or termination of
         leases when leased property is damaged or destroyed and agree that such
         event shall be exclusively governed by the terms of this Lease.

19.11.   If the existing laws do not permit the restoration as described in this
         Article, either Party may terminate this Lease immediately by giving
         notice to the other Party.

19.12.   If Landlord is required or elects to restore the Premises as provided
         in this Article, Tenant shall continue the operation of its business on
         the Premises, during the restoration period, to the extent reasonably
         practicable from the standpoint of prudent business management and to
         the extent that it will not interfere with the repair and restoration
         process.

19.13.   Except for abatement of rent as provided in this Article, Tenant shall
         have no claim against Landlord for any damage suffered by reason of any
         damage, destruction, repair or restoration of the Premises. Tenant
         shall not be entitled to any compensation or damages from Landlord as a
         result of any partial or total destruction of the Premises or for any
         inconvenience, loss, or damage that Tenant may incur as a result of the
         restoration process.

19.14.   In the event that either Party elects to terminate this Lease under the
         enabling provisions of this Article, Tenant shall surrender to the
         Landlord all proceeds from the insurance policies described in the
         Article titled "Insurance," excluding proceeds for the Tenant's trade
         fixtures and equipment.

19.15.   In the case of damage or destruction caused from a risk covered by
         insurance provided in the Article titled "Insurance," there shall be no
         abatement or reduction of rent. However, Tenant shall receive a credit
         against its Rent obligations to the extent that Landlord receives
         insurance proceeds attributable to Tenant's Rent lost during the period
         that the destruction interferes with Tenant's use of the Premises. In
         the case of damage or destruction caused from a risk not covered by the
         insurance provided in the Article titled "Insurance," there shall be an
         abatement or reduction of rent between the date of destruction and the
         date of completion of restoration, based on the extent to which the
         destruction interferes with Tenant's use of the Premises.

                                       32

<PAGE>

19.16.   In the case of damage or destruction caused from a risk not covered by
         the insurance provided in the Article titled "Insurance," if such
         damage or destruction is caused by or arises out of Tenant's acts or
         omissions, or the acts or omissions of Tenant's agents, employees,
         contractors, and/or invitees, Landlord shall not have any obligation to
         repair or restore under this Article, and there shall be no abatement
         of rent under this Lease. Nothing in this Article shall relieve or
         limit any liability of Tenant on account of such acts or omissions.

20. CONDEMNATION.
    -------------
20.1.    "Condemnation" means (i) the exercise of any governmental power,
         whether by legal proceedings or otherwise, by a condemnor and (ii) a
         voluntary sale or transfer by Landlord to any condemnor, either under
         threat of condemnation or while legal proceedings for condemnation are
         pending.

20.2.    "Date of taking" means the date the condemnor has the right to
         possession of the property being condemned.

20.3.    "Award" means all compensation, sums, or anything of value awarded,
         paid, or received on a total or partial condemnation.

20.4.    "Condemnor" means any public or quasi-public authority, or private
         corporation or individual, having the power of condemnation.

20.5.    If, during the term or during the period of time between the execution
         of this Lease and the date the term commences, there is any taking by
         condemnation of all or any part of the land, building, or other
         improvements, of which are a part of the Premises, or any interest in
         this Lease, the rights and obligations of the Parties shall be
         determined pursuant to this Article.

20.6.    If the Premises are totally taken by condemnation, this Lease shall
         terminate on the date of taking.

20.7.    If any portion of the Premises is taken by condemnation, this Lease
         shall remain in effect, except that Tenant, in Tenant's reasonable
         discretion, can elect to terminate this Lease if the remaining portion
         of the Premises is rendered unsuitable for Tenant's continued use of
         the Premises. If Tenant elects to terminate this Lease, Tenant must
         exercise its right to terminate pursuant to this Section by giving
         notice to Landlord within one (1) month after the nature and the extent
         of the taking have been finally determined. If Tenant elects to
         terminate this Lease as provided in this Section, Tenant also shall
         notify Landlord of the date of termination, which date shall not be
         earlier than one (1) month nor later than three (3) months after Tenant
         has notified Landlord of its election to terminate. However, this Lease
         shall terminate on the date of taking if the date of taking falls on a
         date before the date of termination as designated by Tenant. If Tenant
         does not terminate this Lease within the one (1) month period, this
         Lease shall continue in full force and effect.

20.8.    If any portion of the Premises is taken by condemnation and this Lease
         remains in full force and effect, on the date of taking the Base Rent
         shall be reduced by an amount that is in the same ratio to Base Rent as
         the value of the area of the portion of the Premises taken bears to the
         total value of the Premises immediately before the date of taking.

20.9.    If the parking area of the Premises is taken by condemnation, this
         Lease shall remain in full force and effect. However, if fifty percent
         (50%) or more of the parking area is taken by condemnation, or if such
         taking materially impairs Tenant's ability to conduct its business,
         either Party shall have the election to terminate this Lease pursuant
         to this Section by giving written notice to the other.

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20.10.   If, within one (1) month after the date that the nature and extent of
         the taking are finally determined, Landlord notifies Tenant that
         Landlord at its cost shall add on to the remaining Premises' parking
         area so that the area and the approximate layout of the Premises and
         parking area will be substantially the same after the date of taking as
         they were before the date of taking, and Landlord commences the
         restoration immediately and completes the restoration within three (3)
         months after Landlord notifies Tenant, this Lease shall continue in
         full force and effect without any reduction in Base Rent, except the
         abatement or reduction made pursuant to Section 12 of this Article.

20.11.   Each Party waives the provisions of the California Code of Civil
         Procedure allowing either Party to petition the superior court to
         terminate this Lease in the event of a partial taking of the Premises.

20.12.   If there is a partial taking of the Premises and this Lease remains in
         full force and effect pursuant to Section 7 of this Article, Landlord
         at its cost shall accomplish all necessary restoration.

20.13.   Rent shall be abated or reduced during the period from the date of
         taking until the completion of restoration, but all other obligations
         of Tenant under this Lease shall remain in full force and effect. The
         abatement or reduction of rent shall be based on the extent to which
         the restoration interferes with Tenant's use of the Premises.

20.14.   The award shall belong to and be paid to Landlord, except that Tenant
         shall receive from the award the following:

         20.14.1. A sum attributable to Tenant's improvements or alterations
                  made to the Premises by Tenant in accordance with this Lease,
                  which Tenant's improvements or alterations Tenant has the
                  right to remove from the Premises pursuant to the provisions
                  of this Lease but elects not to remove; or, if Tenant elects
                  to remove any such Tenant's improvements or alterations, a sum
                  for reasonable removal and relocation costs not to exceed the
                  market value of such improvements or alterations.

         20.14.2. A sum attributable to any excess of the market value of the
                  Premises (exclusive of Tenant's improvements or alterations
                  for which Tenant is compensated under this Section) for the
                  remainder of the term, over the present value at the date of
                  taking of the Base Rent payable for the remainder of the term.

         20.14.3. A sum attributable to that portion of the award constituting
                  severance damages for the restoration of the Premises.

20.15.   The taking of the Premises or any part of the Premises by military or
         other public authority shall constitute a taking of the Premises by
         condemnation only when the use and occupancy by the taking authority
         has continued for longer than six (6) consecutive months. During the
         six (6) month period, all the provisions of this Lease shall remain in
         full force and effect. However, rent shall be abated or reduced during
         such period of taking based on the extent to which the taking
         interferes with Tenant's use of the Premises. Landlord shall be
         entitled to whatever award may be paid for the use and occupation of
         the Premises for the period involved.

                                       34

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21. ASSIGNMENT.
    -----------
21.1.    Tenant shall not voluntarily assign or encumber its rights or interest
         in this Lease or in the Premises, or sublease all or any part of the
         Premises, or allow any other person or entity (except Tenant's
         authorized representatives) to occupy or use all or any part of the
         Premises, without first obtaining Landlord's written consent through
         strict accordance with the following procedure:

         21.1.1.  Tenant must first give to Landlord a written notice of intent
                  to sublease or assign (referred to herein as "Tenant's
                  Notice") at least one (1) month prior to the effective date of
                  any proposed subletting or assignment. Tenant's Notice must
                  contain the following: (i) whether Tenant proposes to assign
                  or sublet; (ii) the identity and trade of the proposed
                  assignee or sublessee (each of which is referred to herein as
                  the "Transferee") with accompanying financial statements and
                  background information for both the individual Transferee and
                  its business entities; (iii) the nature of the proposed
                  subtenant's or assignee's business to be carried on in the
                  Premises; (iv) a signed statement from both the Tenant and the
                  proposed Transferee stating all the terms and conditions of
                  all their transactions concerning the Premises; and (v) in the
                  case of a subletting, a copy of the proposed sublease.

         21.1.2.  Tenant must at all times promptly notify Landlord of any
                  change and/or alteration of the items required to be in
                  Tenant's Notice. Tenant's failure to do so, or any
                  misrepresentation or untruth contained in Tenant's Notice, by
                  either the Tenant or the proposed Transferee, shall constitute
                  a default by Tenant, and Landlord shall have the right to
                  elect to terminate this Lease Agreement.

         21.1.3.  After receipt of Tenant's Notice, Landlord may, at any time
                  within one (1) month of said receipt, elect to recapture the
                  Premises, or any part thereof, and cancel this Lease as to the
                  amount of the Premises recaptured, by mailing a written
                  cancellation notice to Tenant. Such cancellation shall become
                  effective one (1) month after receipt of said notice by
                  Tenant. If only a portion of the Premises is recaptured, this
                  Lease shall terminate only as to such portion and rent payable
                  under this Lease shall be proportionately reduced.
                  Notwithstanding the foregoing, Tenant may avoid such
                  termination by withdrawing its proposed assignment or sublease
                  by written notice delivered to Landlord within five (5) days
                  after Landlord's termination notice, and, in such event, this
                  Lease shall continue in full force and effect.

         21.1.4.  If Landlord fails to exercise its right to cancel this Lease
                  within the before-mentioned one (1) month period, said
                  cancellation right on the part of the Landlord shall be deemed
                  waived, but only with respect to the assignment or subletting
                  specified in Tenant's Notice. Tenant may thereafter assign
                  this Lease or sublet the Premises in accordance with the terms
                  of Tenant's Notice and the restrictions of this Article.
                  Tenant understands and acknowledges that Landlord's right, as
                  provided in this Article, to terminate this Lease rather than
                  approve the assignment thereof or the subletting of all or any
                  portion of the Premises is a material inducement for
                  Landlord's agreeing to lease the Premises to Tenant upon the
                  terms and conditions herein set forth.

21.2.    Tenant agrees to pay Landlord's reasonable costs and expenses
         (including attorneys' fees) incurred in connection with the processing
         and documentation of any requested assignment, subletting, transfer,
         change of ownership, or hypothecation of this Lease or Tenant's
         interest in and to the Premises, which is submitted to Landlord for
         Landlord's consent.

                                       35

<PAGE>

21.3.    Any mortgage, pledge or assignment of this Lease, or if Tenant is a
         corporation, any transfer of this Lease from Tenant by merger,
         consolidation, reorganization or liquidation shall constitute an
         assignment for the purposes of this Article. If Tenant is a corporation
         (other than a corporation publicly traded stock on a nationally
         recognized stock exchange), an unincorporated association, a limited
         liability company or a partnership, then the transfer (including a
         transfer by means of a merger), assignment or hypothecation of any
         stock or interest in such corporation, association, a limited liability
         company or partnership in the aggregate in excess of fifty percent
         (50%) during any consecutive twelve (12) month period shall be deemed
         an assignment within the meaning and provisions of this Article.
         However, a transfer or assignment of any such stock or interest by a
         shareholder or member to his spouse, children or grandchildren is
         excepted from the foregoing provision. Tenant further acknowledges and
         understands that Landlord's consent is required to any change in entity
         form by Tenant, including, but not limited to, Tenant's change from a
         general partnership to a limited liability partnership or a limited
         liability company and that a condition to Landlord's consent to any
         such change shall be Tenant's acknowledgment in writing that Tenant and
         its constituent partners or owners remain fully liable and responsible
         under the Lease subsequent to the date of the change in entity form.

21.4.    Should any transfer, assignment (whether voluntary or involuntary, by
         operation of law, under legal process or proceedings, by mortgage, by
         security assignment, by receivership, in bankruptcy, or otherwise),
         encumbrance, or sublease be made, or any of Tenant's right under this
         Lease be sold or otherwise transferred by or under court order or legal
         process or otherwise, without obtaining Landlord's written consent,
         according to the procedure described above, such transfer, assignment,
         encumbrance, or sublease shall be voidable and ineffective and, at
         Landlord's election, shall constitute a default. Landlord's consent to
         any assignment, encumbrance, or sublease shall not constitute a further
         waiver of the provisions of this Section, including without limitation,
         Landlord's recapture right. The same shall apply to each successive
         transfer, assignment, or subletting, if any. Landlord shall not
         unreasonably withhold consent. It shall not be unreasonable for
         Landlord to withhold such consent because it wishes to exercise its
         right to recapture all or part of the Premises or because the proposed
         transferee is any governmental agency, federal, state, local or foreign
         government, inconsistent with other tenants in the Project, or for
         Landlord to condition such consent upon Landlord's determination that
         (i) Tenant is not in default in the performance of any of its
         obligations (monetary or non-monetary) under this Lease; (ii) the
         proposed assignee or subtenant is as financially stable as Tenant and
         meets reasonable standards of credit-worthiness then used by Landlord
         to assess a prospective tenant's ability to fulfill the obligations of
         the Lease; and (iii) the proposed assignee or subtenant is likely to
         conduct on the Premises a business of a character and quality
         substantially equal to that conducted by Tenant and the entire Project
         in general. Tenant agrees to pay Landlord's reasonable costs and
         expenses (including attorneys' fees) incurred in connection with the
         processing and documentation of any requested assignment, subletting,
         transfer, change of ownership, or hypothecation of this Lease or
         Tenant's interest in and to the Premises, which is submitted to
         Landlord for Landlord's consent. Consent by Landlord to an assignment
         or a subletting shall neither release Tenant from its primary liability
         under this Lease nor from its obligations as stated in this Article.

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21.5.    One half (1/2) of any consideration received by Tenant for either
         assigning this Lease or from entering into a sublease contract, as well
         as one half (1/2) of any continuing rent paid to Tenant from a
         Transferee in excess of the rent Tenant was obligated to pay to
         Landlord at the time of the assignment or sublease, shall be paid to
         the Landlord, within ten (10) days of receipt, in consideration for
         Landlord's consent to any assignment or subletting. Tenant's failure to
         pay to Landlord said required consideration shall constitute a default
         by Tenant and Landlord shall have the right to immediately terminate
         this Lease Agreement in addition to all other remedies.

21.6.    Tenant immediately and irrevocably assigns to Landlord, as security for
         Tenant's obligations under this Lease, all rent from any subletting of
         all or a part of the Premises as permitted by this Lease, and Landlord,
         as assignee and as attorney-in-fact for Tenant, or a receiver for
         Tenant appointed on Landlord's application, may collect such rent and
         apply it toward Tenant's obligations under this Lease. However, until
         the occurrence of default by Tenant, Tenant shall have the right to
         collect such rent. Notwithstanding any assignment, sublease, or other
         transfer, Tenant shall remain fully and primarily liable under this
         Lease and shall not be released from performing any of the terms,
         covenants and conditions of this Lease. In the event of a default
         hereunder, Landlord may proceed directly against Tenant without
         pursuing any assignee or subtenant. Landlord may modify this Lease
         without releasing Tenant from its obligations under this Lease,
         provided that Tenant shall not be responsible for any new obligations
         created by any such modification.

21.7.    No interest of Tenant in this Lease shall be assignable by operation of
         law (including, without limitation, the transfer of this Lease by
         testacy or intestacy). Each of the following acts shall be considered
         an involuntary assignment:

         21.7.1.  If Tenant is or becomes bankrupt or insolvent, makes an
                  assignment for the benefit of creditors, or institutes a
                  proceeding under the Bankruptcy Act in which Tenant is the
                  bankrupt; or, if Tenant is a partnership or consists of more
                  than one person or entity, if any partner of the partnership
                  or other person or entity is or becomes bankrupt or insolvent,
                  or makes an assignment for the benefit of creditors;

         21.7.2.  If a writ of attachment or execution is levied on this Lease;

         21.7.3.  If, in any proceeding or action to which Tenant is a Party, a
                  receiver is appointed with authority to take possession of the
                  Premises.

21.8.    An involuntary assignment shall constitute a default by Tenant and
         Landlord shall have the right to elect to terminate this Lease; in
         which case, this Lease shall not be treated as an asset of Tenant.

21.9.    If a writ of attachment or execution is levied on this Lease, Tenant
         shall have 10 days in which to initiate removal of the attachment or
         execution and six (6) months to remove the same. If any involuntary
         proceeding in bankruptcy is brought against Tenant, or if a receiver is
         appointed, Tenant shall have two (2) months in which to have the
         involuntary proceeding dismissed or the receiver removed. Landlord
         shall have the option to extend said time limitations.

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<PAGE>

21.10.   Regardless of Landlord's consent, no subletting, assignment,
         hypothecation, license or concession shall release Tenant of Tenant's
         obligations or alter the primary liability of Tenant to pay the rent
         and perform all other obligations to be performed by Tenant hereunder.
         The acceptance of rent by Landlord from any other person shall not be
         deemed to be a waiver by Landlord of any provision hereof. Consent to
         one assignment, subletting, hypothecation, license or concession
         agreement shall not be deemed consent to any subsequent assignment,
         subletting, hypothecation, license or concession agreement. In the
         event of default by any assignee of Tenant or any successor of Tenant
         in the performance of any of the terms hereof, Landlord may proceed
         directly against Tenant without the necessity of exhausting remedies
         against such assignee or successor. Landlord may consent to subsequent
         assignments, subletting, hypothecations, licenses or concession
         agreements and to amendments or modifications to this lease, with
         assignees or other successors of Tenant without notifying Tenant or any
         successor of Tenant, and without obtaining its or their consent thereto
         and such action shall not relieve Tenant of liability under this Lease.

21.11.   If Landlord does not elect to recapture pursuant to this Article,
         Tenant may enter into a valid assignment or sublease provided that
         Landlord consents thereto pursuant to this Article, and provided that
         (i) such assignment or sublease is executed within ninety (90) days
         after Landlord has given its consent to same, (ii) Tenant pays (or
         causes to be paid) Landlord's reasonable costs and expenses (including
         attorneys' fees) incurred in connection with the processing and
         documentation of any requested assignment, subletting, transfer, change
         of ownership, or hypothecation of this Lease or Tenant's interest in
         and to the Premises, (iii) Tenant is not in default under this Lease as
         of the effective date of the assignment or sublease, (iv) there have
         been no material changes (since the date on which Landlord's consent
         was given) with respect to the financial condition or background of the
         proposed subtenant or assignee or the business which said party plans
         to conduct on the Premises, and (v) a fully executed original of such
         assignment or sublease (either of which shall state that the assignee
         or subtenant agrees, for the express benefit of Landlord, to be bound
         by all of the terms, covenants, and conditions of this Lease) is
         delivered to Landlord prior to the date the assignee or subtenant takes
         possession of any portion of the Premises.

21.12.   Indemnity For Commissions. Tenant agrees to protect, defend and
         indemnify and hold Landlord harmless with respect to any and all costs
         and expenses (including attorneys' fees) and liability for compensation
         claimed by any broker or agent in connection with any assignment,
         subletting or other transfer of Tenant's interest under this Lease.

21.13.   Notwithstanding any other provision of this Lease, Tenant shall not,
         without Landlord's prior written consent, assign this Lease or sublet
         all or any part of the Premises for any purpose which would violate any
         negative covenant as to use contained in any then outstanding lease
         affecting the Building, in any declaration of restrictions affecting
         the Building, or in any mortgage or deed of trust affecting the
         Building. Landlord shall from time to time advise Tenant of any such
         negative covenants, upon Tenant's making written request to Landlord
         for such information. Moreover, Tenant shall not assign or sublet to
         any party for a use which is not in compliance with the permitted uses
         as specified in the Article titled "Use, Limitations" above.

21.14.   If Tenant is a partnership, any new general partner added to the
         partnership after the execution of this Lease shall be liable for the
         obligations of Tenant. Any general partner who ceases to be a general
         partner in Tenant after the execution of this Lease shall not be
         relieved of his liability for the obligations of Tenant.

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21.15.   In addition, Tenant expressly warrants that the rental rate for such
         sublet Premises shall not be included in any printed advertising or
         mailings that Tenant or its agents shall utilize in seeking to sublet
         the Premises.

21.16.   Notwithstanding the foregoing, no consent of Landlord shall be required
         for any assignment, subletting or transfer to a parent corporation,
         subsidiary corporation, sister corporation or other entity related to
         Tenant, or any such transfers occurring as a result of a merger or
         corporate reorganization of Tenant, or any purchaser of all or
         substantially all of the assets of Tenant.

22. DEFAULT.
    --------
22.1.    The occurrence of any of the following shall constitute a material
         default and breach of this Lease by Tenant:

         22.1.1.  The failure of Tenant to pay or cause to be paid when due any
                  rent, monies, or charges required by this Lease to be paid by
                  Tenant;

         22.1.2.  Tenant causing or permitting, without prior written consent of
                  Landlord, any act when this Lease requires Landlord's prior
                  written consent or prohibits such act;

         22.1.3.  The making by Tenant of any general assignment for the benefit
                  of creditors or any similar action for the protection or
                  benefit of creditors; the filing by or against Tenant of a
                  petition to have Tenant adjudged a Chapter 7 debtor or to have
                  debts discharged or of a petition for reorganization or
                  arrangement under any Law relating to bankruptcy (unless, in
                  the case of a petition filed against Tenant, the same is
                  dismissed within sixty (60) days of the appointment of a
                  trustee or receiver to take possession of substantially all of
                  Tenant's assets located at the Premises or of Tenant's
                  interest in this Lease, where possession is not restored to
                  Tenant within sixty (60) days); the attachment, execution, or
                  other judicial seizure of substantially all of Tenant's assets
                  located at the Premises or of Tenant's interest in this Lease,
                  where such seizure is not discharged within sixty (60) days;
                  or Tenant's convening of a meeting of its creditors or any
                  class thereof for the purpose of effecting a moratorium or
                  composition of its debts;

         22.1.4.  If Tenant shall file a voluntary petition in bankruptcy or
                  shall be adjudicated bankrupt or insolvent, or shall file any
                  petition or answer seeking any reorganization, arrangement,
                  composition, readjustment, liquidation, dissolution or similar
                  relief for itself under any present or future applicable Law
                  relative to bankruptcy, insolvency, or other relief for
                  debtors, or shall seek or consent to or acquiesce in the
                  appointment of any trustee, receiver, conservator or
                  liquidator of Tenant or of all or any substantial part of its
                  properties or its interest in the Premises (the term
                  "acquiesce" as used in this Section, includes, but is not
                  limited to, the failure to file a petition or motion to
                  vacate, appeal or discharge any order, judgment or decree
                  within ten (10) days after entry of such order, judgment or
                  decree);

         22.1.5.  If a court of competent jurisdiction shall enter an order,
                  judgment or decree approving a petition filed against Tenant
                  seeking any reorganization, arrangement, composition,
                  readjustment, liquidation dissolution or similar relief under
                  any present or future Federal bankruptcy act, or any other
                  present or future applicable Law relating to bankruptcy,
                  insolvency, or other relief for debtors, and Tenant shall
                  acquiesce in the entry of such order, judgment or decree if
                  such order, judgment or decree shall remain unvacated and
                  unstayed for an aggregate of sixty (60) days (whether or not
                  consecutive) from the date of entry thereof, or any trustee,
                  receiver, conservator or liquidator of Tenant or of all or any
                  substantial part of its property or its interest in the
                  Premises shall be appointed without the consent or
                  acquiescence of Tenant and such appointment shall remain
                  unvacated and unstayed for an aggregate of sixty (60) days
                  (whether or not consecutive);

                                       39

<PAGE>

         22.1.6.  If Tenant shall admit in writing its inability to pay its
                  debts as they mature;

         22.1.7.  If Tenant shall give notice to any governmental body of
                  insolvency or pending insolvency, or suspension or pending
                  suspension of operations; or

         22.1.8.  The existence of any material misrepresentation or omission in
                  any financial statements, correspondence or other information
                  provided to Landlord by or on behalf of Tenant or any
                  guarantor in connection with (a) Tenant's negotiation or
                  execution of this Lease; (b) Landlord's evaluation of Tenant
                  as a prospective tenant at the Project; (c) any proposed or
                  attempted transfer; or (d) any consent or approval Tenant
                  requests under this Lease.

         22.1.9.  Failure to perform any other provision of this Lease, unless
                  such failure shall reasonably require more than thirty (30)
                  days to cure. In that latter case, Tenant shall not be in
                  default upon the condition that Tenant immediately commences
                  and diligently prosecutes the cure to completion.

22.2.    Any such notice provided to Tenant under this Section shall be in lieu
         of, and not in addition to, any notice required under Section 1161, et
         seq., of the California Code of Civil Procedure. Notices given under
         this Section shall specify the alleged default and the applicable Lease
         provisions, and shall demand that Tenant perform the provisions of this
         Lease or pay the rent that is in arrears, as the case may be, within
         the applicable period of time, or quit the Premises. No such notice
         shall be deemed a forfeiture or a termination of this Lease unless
         Landlord so elects in the notice.

22.3.    Landlord shall have the following remedies if Tenant commits a default.
         These remedies are not all inclusive; they are cumulative in addition
         to any remedies now or later allowed by law or other provisions of this
         Lease. No waiver by Landlord of a breach of any of the terms, covenants
         or conditions of this Lease by Tenant shall be construed or held to be
         a waiver of any succeeding or preceding breach of the same or any other
         term, covenant or condition therein contained. No waiver of any default
         of Tenant hereunder shall be implied from any omission by Landlord to
         take any action on account of such default if such default persists or
         is repeated and no express waiver shall affect default other than as
         specified in said waiver. The consent or approval by Landlord to or of
         any act by Tenant requiring Landlord's consent or approval shall not be
         deemed to waive or render unnecessary Landlord's consent to or approval
         of any subsequent similar acts by Tenant. No statement on a payment
         check from Tenant or in a letter accompanying a payment check is
         binding on Landlord. Landlord may, with or without notice to Tenant,
         negotiate such check without being bound to the conditions of any such
         statement. If Tenant pays any amount other than the actual amount due
         Landlord, receipt or collection of such partial payment does not
         constitute an accord and satisfaction. Landlord may retain any such
         partial payment, whether restrictively endorsed or otherwise, without
         prejudice to Landlord's right to collect the balance properly due. If
         all or any portion of any payment is dishonored for any reason, payment
         will not be deemed made until the entire amount due is actually
         collected by Landlord. The foregoing provisions apply in kind to the
         receipt or collection of any amount by a lock box agent or other person
         on Landlord's behalf.

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<PAGE>

         22.3.1.  Landlord can continue this Lease in full force and effect and
                  shall have the right to collect rent when due. During the
                  period Tenant is in default, Landlord may relet the Premises,
                  or any part thereof, to third parties for Tenant's account.
                  Landlord shall have the right, with or without terminating
                  this Lease, to re-enter the Premises and remove all persons
                  and property from the Premises. Such property may be removed
                  and stored in a public warehouse or elsewhere at the cost of
                  and for the account of Tenant. Tenant waives and releases all
                  Claims Tenant may have resulting from Landlord's re-entry and
                  taking possession of the Premises by any lawful means and
                  removing and storing Tenant's property as permitted under this
                  Lease, regardless whether this Lease is terminated and, to the
                  fullest extent allowable under the Laws, Tenant releases and
                  will indemnify, defend (with counsel reasonably acceptable to
                  Landlord), protect and hold harmless the Landlord Parties from
                  and against any and all Claims occasioned thereby. No re-entry
                  or taking possession of the Premises by Landlord shall be
                  construed as an election to terminate this Lease unless a
                  written notice of such intention is given to Tenant. If
                  Landlord shall elect to re-enter the Premises under the
                  provision of this Section, Landlord shall not be liable for
                  damages by reason of such re-entry. Tenant shall be liable
                  immediately to Landlord for all costs Landlord incurs in
                  reletting the Premises, including, without limitation,
                  brokers' commissions, expenses of remodeling the Premises
                  required by the reletting, and like costs. Reletting can be
                  for a period shorter or longer than the remaining term of this
                  Lease. Tenant shall pay to Landlord the rent due under this
                  Lease on the dates the rent is due, less the rent Landlord
                  receives from any reletting. After Tenant's default, and for
                  as long as Landlord does not terminate Tenant's right to
                  possession of the Premises, if Tenant obtains Landlord's
                  consent, Tenant shall have the right to assign or sublet its
                  interest in this Lease pursuant to the Article titled
                  "Assignment." Tenant acknowledges that Landlord shall have the
                  remedy described in California Civil Code Section 1951.4
                  (Landlord may continue this Lease in effect after Tenant's
                  breach and abandonment and recover rent as it becomes due, if
                  Tenant has the right to sublease or assign, subject only to
                  reasonable limitations). In the event that Landlord should
                  elect to relet the Premises or any part thereof on terms and
                  conditions as Landlord in its sole discretion may deem
                  advisable with the right to make alterations and repairs to
                  the Premises, it may execute any new lease in its own name.
                  Tenant hereunder shall have no right or authority whatsoever
                  to collect any rent from such tenant. The proceeds of any such
                  reletting shall be applied as follows:

                  22.3.1.1. First, to the payment of any indebtedness other than
                           rent due hereunder from Tenant to Landlord, including
                           but not limited to storage charges;

                  22.3.1.2. Second, to the payment of the costs and expenses of
                           reletting the Premises, including brokerage
                           commissions, alterations and repairs which Landlord,
                           in its sole discretion, deems reasonably necessary
                           and advisable and reasonable attorneys' fees incurred
                           by Landlord in connection with the retaking of the
                           said Premises and such reletting;

                  22.3.1.3. Third, to the payment of rent and other charges due
                           and unpaid hereunder; and

                  22.3.1.4. Fourth, to the prorated value of the concessions
                           granted to Tenant upon signing the Lease; and

                  22.3.1.5. Fifth, to the payment of future rent and other
                           damages payable by Tenant under this Lease.

                                       41

<PAGE>

         22.3.2.  Landlord can terminate Tenant's right to possession of the
                  Premises at any time. Unless Landlord shall have notified
                  Tenant in writing that it has elected to terminate this Lease,
                  Landlord shall not be deemed to have terminated this Lease,
                  Tenant's right to possession of the Leasehold, the liability
                  of Tenant to pay rent thereafter, or Tenant's liability for
                  damages under any of the provisions hereof. Tenant agrees that
                  the service by Landlord of any notice pursuant to the unlawful
                  detainer statutes of the State of California and Tenant's
                  surrender of possession pursuant to such notice shall not be
                  deemed to be a termination of this Lease or of Tenant's right
                  to possession thereof (unless Landlord elects to the contrary
                  at the time of, or at any time subsequent to the service of,
                  such notice, and such election be evidenced by a written
                  notice to Tenant). Acts of maintenance, efforts to relet the
                  Premises, or the appointment of a receiver on Landlord's
                  initiative to protect Landlord's interest under this Lease
                  shall not constitute a termination of Tenant's right to
                  possession. On termination, Landlord has the right to recover
                  from Tenant:

                  22.3.2.1. The worth, at the time of the award ("The worth, at
                           the time of the award," as used in this Subsection is
                           to be computed by allowing interest at the rate of
                           10% per annum or the maximum amount allowed by law if
                           that rate is higher than 10%) of the unpaid rent that
                           had been earned at the time of termination of this
                           Lease; plus

                  22.3.2.2. The worth, at the time of the award, of the amount
                           by which the unpaid rent that would have been earned
                           after the date of termination of this Lease until the
                           time of award exceeds the amount of the loss of rent
                           that Tenant proves could have been reasonably
                           avoided; plus

                  22.3.2.3. The worth, at the time of the award, of the amount
                           by which the unpaid rent for the balance of the term
                           after the time of award exceeds the amount of the
                           loss of rent that Tenant proves could have been
                           reasonably avoided; plus

                  22.3.2.4. Any other amount, and court costs, necessary to
                           compensate Landlord for all detriment proximately
                           caused by Tenant's default.

         22.3.3.  If Tenant is in default of this Lease, Landlord shall have the
                  right to have a receiver appointed to collect rent and conduct
                  Tenant's business. Neither the filing of a petition for the
                  appointment of a receiver nor the appointment itself shall
                  constitute an election by Landlord to terminate this Lease.

         22.3.4.  Landlord, at any time after Tenant commits a default, can cure
                  the default at Tenant's costs. If at any time, by reason of
                  Tenant's default, Landlord pays any sum or does any act that
                  requires the payment of any sum, the sum paid by Landlord
                  shall be due immediately from Tenant to Landlord at the time
                  the sum is paid, and if Tenant pays such sum at a later date,
                  it shall bear interest at the rate of 10% per annum from the
                  date the sum is paid by Landlord until Landlord is reimbursed
                  by Tenant. The sum, together with accrued interest, shall be
                  additional rent.

22.4.    In the event of a material and undisputed default of Tenant hereunder,
         Landlord shall have the right, at its option, to suspend or discontinue
         all or any one or more of the services specified in the Article titled
         "Utilities and Services" during continuance of any such default; and no
         such suspension or discontinuance shall be deemed or construed to be an
         eviction or ejection of Tenant.

                                       42

<PAGE>

22.5.    Landlord shall be in default of this Lease if it fails or refuses to
         perform any provision of this Lease that it is obligated to perform if
         the failure to perform is not cured within one (1) month after written
         notice of the default has been given by Tenant to Landlord. If the
         default cannot reasonably be cured within one (1) month, Landlord shall
         not be in default of this Lease if Landlord commences to cure the
         default within the one (1) month period and diligently and in good
         faith continues to cure the default.

22.6.    In no event is Landlord liable to Tenant or any other person for
         consequential, special or punitive damages, including, without
         limitation, lost profits. If Landlord is in default of this Lease, and
         as a consequence Tenant recovers a money judgment against Landlord, the
         judgment shall be satisfied only out of the proceeds of sale received
         on execution of the judgment and levy against the right, title, and
         interest of Landlord in the Premises, and out of rent or other income
         from such real property receivable by Landlord or out of the
         consideration received by Landlord from the sale or other disposition
         of all or any part of Landlord's right, title, and interest in the
         Premises. The obligations of Landlord under this Lease do not
         constitute personal obligations of Landlord or the individual partners,
         shareholders, directors, officers, employees or agents of Landlord.
         Tenant shall look solely to Landlord's interest in the Leased Premises,
         and to no other assets of Landlord, for satisfaction of any liability
         in respect of this Lease, and shall not seek recourse against the
         individual partners, shareholders, directors, officers, employees, or
         agents of Landlord or any of their personal assets for such
         satisfaction.

22.7.    If a court of competent jurisdiction determines that any act described
         in this Article does not constitute a default, and the court appoints a
         trustee to take possession of the Premises (or if Tenant remains a
         debtor in possession of the Premises) and such trustee or Tenant
         transfers Tenant's interest hereunder, then Landlord is entitled to
         receive, as Additional Rent, the amount by which the Rent (or any other
         consideration) paid in connection with the Transfer exceeds the Rent
         otherwise payable by Tenant under this Lease.

22.8.    Tenant will reimburse and compensate Landlord on demand and as
         Additional Rent for any actual loss Landlord incurs in connection with,
         resulting from or related to any breach or default of Tenant under this
         Lease, regardless of whether suit is commenced or judgment is entered.
         Such loss includes all reasonable legal fees, costs and expenses
         (including paralegal fees and other professional fees and expenses)
         Landlord incurs investigating, negotiating, settling or enforcing any
         of Landlord's rights or remedies or otherwise protecting Landlord's
         interests under this Lease. Tenant will also indemnify, defend (with
         counsel reasonably acceptable to Landlord), protect and hold harmless
         the Landlord Parties from and against all Claims Landlord or any of the
         other Landlord Parties incurs if Landlord or any of the other Landlord
         Parties becomes or is made a party to any claim or action: (a)
         instituted by Tenant or by or against any person holding any interest
         in the Premises by, under or through Tenant; (b) for foreclosure of any
         lien for labor or material furnished to or for Tenant or such other
         person; or (c) otherwise arising out of or resulting from any act or
         omission of Tenant or such other person. In addition to the foregoing,
         Landlord is entitled to reimbursement of all of Landlord's fees,
         expenses and damages, including, but not limited to, reasonable
         attorneys' fees and paralegal and other professional fees and expenses,
         Landlord incurs in connection with protecting its interests in any
         bankruptcy or insolvency proceeding involving Tenant, including,
         without limitation, any proceeding under any chapter of the Bankruptcy
         Code; by exercising and advocating rights under Section 365 of the
         Bankruptcy Code; by proposing a plan of reorganization and objecting to
         competing plans; and by filing motions for relief from stay. Such fees
         and expenses are payable on demand, or, in any event, upon assumption
         or rejection of this Lease in bankruptcy.

                                       43

<PAGE>

23. ADVERTISING.
    ------------
23.1.    Tenant shall not affix any signs, banners, advertising placards, names,
         insignias, trademarks (collectively referred to in this Article as
         "Signs or "Signs") or other descriptive materials on any window or upon
         the exterior of the Building, unless Tenant has received the prior
         written approval of Landlord as to size, type, color, location, copy,
         nature and display qualities of any such proposed materials. Any Sign
         that is affixed or displayed without Landlord's written approval shall
         be subject to a sign removal fee of One Hundred Dollars ($100.00) per
         occurrence. All Signs must conform to the other signs used throughout
         the Building. Any Sign must meet the requirements of any Declaration of
         Restrictions encumbering the Project and the requirements of the City
         of Vista. Tenant shall not display, store or sell any merchandise
         outside the defined exterior walls and permanent doorways of the
         Premises. Tenant shall not install any exterior lighting, amplifiers or
         similar devices, or use in or about the Premises any advertising media
         which may be heard or seen outside the Premises, such as flashing
         lights, search lights, loudspeakers, phonographs or radio broadcasts.

23.2.    Tenant shall pay for the creation and installation of the appropriate
         tenant identification signs at the Project.

23.3.    Landlord shall have the right to prohibit any advertising by any tenant
         which, in Landlord's reasonable opinion, tends to impair the reputation
         of the Building or the Project or their desirability; and upon written
         notice from Landlord, any tenant shall refrain from or discontinue such
         advertising.

24. NO PUBLIC DISCLOSURES.
    ----------------------
24.1.    The terms and conditions of this Lease constitute proprietary
         information of Landlord that Tenant will keep confidential. Tenant's
         disclosure of the terms and conditions of this Lease could adversely
         affect Landlord's ability to negotiate other leases and impair
         Landlord's relationship with other tenants. Accordingly, Tenant will
         not, without Landlord's consent (which consent Landlord may grant or
         withhold in its sole and absolute discretion), directly or indirectly
         disclose the terms and conditions of this Lease to any other tenant or
         prospective tenant of the Building or to any other person or entity
         other than Tenant's employees and agents who have a legitimate need to
         know such information (and who will also keep the same in confidence)
         or to the extent Tenant is required to disclose such terms and
         conditions by federal or state law.

24.2.    Tenant expressly warrants that the rental rate for such sublet Premises
         shall not be included in any printed advertising or mailings that
         Tenant or its agents or advisors shall utilize in seeking to sublet the
         Premises.

24.3.    Tenant will not record this Lease or a Memorandum of this Lease without
         Landlord's prior written consent, which consent Landlord may grant or
         withhold in its sole and absolute discretion.

                                       44

<PAGE>

25. LANDLORD'S ENTRY ON PREMISES.
    -----------------------------
25.1.    Upon giving Tenant twenty-four (24) hours notice, Landlord and its
         authorized representatives and agents shall have the right to enter or
         pass through the Premises during all reasonable hours, including normal
         business hours for any of the following purposes:

         25.1.1.  To determine whether the Premises are in good condition and
                  whether Tenant is complying with its obligations under this
                  Lease;

         25.1.2.  To protect the interest therein of Landlord; to make
                  alterations, additions and to do any necessary maintenance and
                  repairs; to make any restoration to the Premises, or the
                  building and other improvements in which the Premises are
                  located, that Landlord has the right or obligation to perform;
                  to provide any services in accordance with this Agreement; to
                  perform any obligations of Tenant that Tenant fails to
                  perform; and to take all required materials and equipment into
                  the Premises and perform all required work therein, including
                  the erection of scaffolding, props, or other mechanical
                  devices.

         25.1.3.  To serve, post, or keep posted any notices required or allowed
                  under the provisions of this Lease;

         25.1.4.  To post "for sale" signs at any time during the term, to post
                  "for rent" or "for lease" signs during the last three (3)
                  months of the term, or during any period while Tenant is in
                  default;

         25.1.5.  To show the Premises to prospective brokers, agents, buyers,
                  Tenants, persons interested in an exchange, holders of
                  encumbrances on the interest of Landlord under the Lease, and
                  prospective, mortgagees or tenants of the Building at any time
                  during the term; or

         25.1.6.  To shore the foundations, footings, and walls of the Premises
                  and to erect scaffolding and protective barricades around and
                  about the Premises, but not so as to prevent entry to the
                  Premises, and to do any other act or thing necessary for the
                  safety or preservation of the Premises if there is any
                  excavation on any adjacent property or nearby street. With
                  Landlord's consent, Landlord's right under this Subsection
                  extends to the owner of the adjacent property on which
                  excavation or construction is to take place and the adjacent
                  property owner's authorized representatives.

25.2.    Landlord shall not be liable in any manner for any inconvenience,
         disturbance, loss of business, nuisance, loss of quiet enjoyment, or
         other damage arising out of Landlord's or Landlord's authorized
         representative's or agent's entry on the Premises as provided in this
         Article except damage resulting from the acts or omissions of Landlord
         or its authorized representatives.

25.3.    If during the last month of the term of this Lease Tenant shall have
         removed substantially all of Tenant's property and personnel from the
         Premises, Landlord may enter the Premises and repair, alter, and
         redecorate the same, without abatement of rent and without liability to
         Tenant and such acts shall have no effect on Tenant's obligations under
         this Lease.

25.4.    For each of the purposes described in this Article, Landlord shall at
         all times have and retain a key with which to unlock all the doors in,
         upon, or about the Premises, excluding Tenant's vaults and safes.
         Landlord shall have the right to use any and all means which Landlord
         may deem proper to open such doors during the continuance of an
         emergency in order to obtain entry to the Premises, and any entry to
         the Premises obtained by Landlord by any of such means shall not under
         any circumstances be construed or deemed to be a forcible or unlawful
         entry into, or detainer of, the Premises, or to be an eviction of
         Tenant from the Premises or any portion thereof. All locks and locking
         devices shall be a part of the building's master-keying system. Neither
         Tenant nor any other person, other than Landlord or its agents, shall
         change any locks.

                                       45

<PAGE>

25.5.      Tenant shall be entitled to an abatement or reduction of rent, if
           Landlord exercises any rights reserved in this Article to the extent
           that Landlord's entry and activities interfere with Tenant's business
           on the Premises. However, if Landlord's entry and activities on the
           Premises result from Tenant's default, Tenant shall not be entitled
           to any abatement or reduction of rent.

25.6.      Landlord shall conduct its activities on the Premises, as allowed in
           this Article, in a manner that will cause the least possible
           inconvenience, annoyance, or disturbance to Tenant.

25.7.      Nothing in this Article shall prohibit Landlord from entering the
           Premises without first giving notice to Tenant, as allowed by law, in
           response to an emergency situation.

26. OFFSET STATEMENT, ATTORNMENT, SUBORDINATION.
    --------------------------------------------
26.1.    After request therefore by Landlord, or in the event that upon any
         sale, assignment or hypothecation of the Premises by Landlord, an
         offset statement and/or estoppel certificate shall be required from
         Tenant, Tenant agrees to deliver a certificate, in recordable form, to
         any proposed lender or purchaser, or to Landlord, certifying: (1) The
         date of commencement of this Lease; (2) the fact that this Lease is
         unmodified and in full force and effect (or, if there have been
         modifications hereto, that this Lease is in full force and effect, and
         stating the date and nature of such modifications); (3) the date to
         which the rental and other sums payable under this Lease have been
         paid; (4) that there are no defenses or offsets thereto, or stating
         those claimed by Tenant (5) that there are no current defaults under
         this Lease by either Landlord or Tenant except as specified in Tenant's
         statement; and (6) such other matters requested by Landlord, or any
         proposed lender and/or purchaser. Landlord and Tenant intend that any
         mortgagee, beneficiary, purchaser or prospective purchaser of the
         Building, Project or any interest therein, may rely upon any statement
         delivered pursuant to this Article. Tenant shall deliver the
         certificate, in the form proposed by the requesting entity, within ten
         (10) days after the request is made. Tenant's failure to deliver such
         statements within such time shall be conclusive upon the Tenant that
         this Lease is in full force and effect, except as and to the extent any
         modification has been represented by Landlord, and that there are no
         uncured defaults in Landlord's performance and that not more than one
         month's rent has been paid in advance. Such failure also constitutes a
         default of this Lease. In such event, Tenant is estopped from denying
         the truth of such facts.

26.2.    Tenant will, within 10 days after Landlord's request at any time during
         the Term, deliver to Landlord complete, accurate and up-to-date
         financial statements with respect to Tenant and any Guarantor(s) or
         other parties obligated upon this Lease, which financial statements
         must be (a) prepared according to generally accepted accounting
         principles consistently applied, and (b) certified by an independent
         certified public accountant or by Tenant's (or Guarantor's, as the case
         may be) chief financial officer that the same are a true, complete and
         correct statement of Tenant's (or Guarantor's) financial condition as
         of the date of such financial statements. Landlord agrees to keep such
         financial statements confidential.

26.3.    In the event of termination of any underlying lease, or in the event of
         foreclosure or exercise of any power of sale under any mortgage or deed
         of trust superior to this Lease or to which this Lease is subject or
         subordinate, Tenant, upon demand, shall attorn to the lessor under said
         underlying lease or to the purchaser at any foreclosure sale or sale
         pursuant to the exercise of any power of sale under any mortgage or
         deed of trust, in which event this Lease shall not terminate, Tenant's
         quiet enjoyment of the Premises shall not be disturbed, and Tenant
         shall automatically be and become the tenant of the lessor under said
         underlying lease or to the purchase, whichever shall make demand
         therefore. Tenant waives the protection of any statute or rule of law
         that gives or purports to give Tenant any right to terminate this Lease
         or surrender possession of the Premises upon the transfer of Landlord's
         interest. No landlord or purchaser at any foreclosure sale pursuant to
         the exercise of any power of sale or any successor thereto shall be
         liable for any act or omission of any prior landlord (including
         Landlord), or subject to any offsets or defenses which Tenant might
         have against any prior landlord (including Landlord), or be bound by
         any rent or additional rent which Tenant might have paid in advance to
         any prior landlord (including Landlord) for a period in excess of one
         month, or by any security deposit, cleaning deposit or other prepaid
         charge which Tenant might have paid in advance to any prior landlord
         (including Landlord), or bound by any agreement or modification of this
         Lease made without the prior written consent of such party.

                                       46

<PAGE>

26.4.    Upon the request of Landlord, Tenant shall subordinate its rights
         hereunder to the lien of any deed(s) of trust or the lien resulting
         from any other method of financing or refinancing, now or hereafter in
         force against the Premises, Building, or Project or any part thereof,
         or upon any buildings hereafter placed upon the Premises, and to all
         advances made or hereafter to be made upon the security thereof. This
         Section shall be self-operative if no further instrument of
         subordination is required by any lender, provided that Tenant's right
         to possession of the Premises shall not be disturbed so long as Tenant
         is not in default hereunder.

26.5.    Upon the request of Landlord or any other Party in interest, Tenant
         shall promptly execute such documents, instruments or certificates that
         may be necessary to carry out the intent of this Article. Any
         subordination instrument for Tenant's signature shall contain
         reasonable nondisturbance provisions for Tenant's benefit. Tenant's
         failure to execute or deliver any certificate, or other document or
         instrument required by this Article, in a timely manner, shall be a
         material breach of this Lease. Landlord shall be entitled to receive
         all monetary damages caused by any such breach. Tenant hereby
         irrevocably appoints Landlord as attorney-in-fact for Tenant with full
         power and authority to execute and deliver, in the name of Tenant, any
         such instruments or certificates. If Tenant shall not have executed the
         same within fifteen (15) days after the date of a request by Landlord
         to execute such instruments, Landlord may, at its option, cancel this
         Lease without incurring any liability on account thereof. The term of
         this Lease is expressly limited accordingly.

26.6.    If, in connection, with obtaining construction, interim, or permanent
         financing for the Project the lender shall request reasonable
         modifications in this Lease as a condition to such financing, Tenant
         shall not withhold, delay or defer its consent thereto, provided that
         such modifications do not increase the monetary obligations of Tenant
         hereunder or materially and adversely affect the leasehold interest
         hereby created or Tenant's rights hereunder.

26.7.    At any time during the term of this Lease, Tenant shall upon ten (10)
         days' prior written notice from Landlord, provide Landlord with a
         current financial statement and financial statements of the two (2)
         years prior to the current financial statement year. Such statement
         shall be prepared in accordance with generally accepted accounting
         principles and shall be audited by an independent certified public
         accountant.

26.8.    Tenant will give the holder of any Mortgage, by registered mail, a copy
         of any notice of default Tenant serves on Landlord, provided that
         Landlord or the holder of the Mortgage previously notified Tenant (by
         way of notice of assignment of rents and leases or otherwise) of the
         address of such holder. Tenant further agrees that if Landlord fails to
         cure such default within the time provided for in this Lease, then
         Tenant will provide written notice of such failure to such holder and
         such holder will have an additional 30 days within which to cure the
         default. If the default cannot be cured within the additional 30 day
         period, then the holder will have such additional time as may be
         necessary to effect the cure if, within the 30 day period, the holder
         has commenced and is diligently pursuing the cure (including without
         limitation commencing foreclosure proceedings if necessary to effect
         the cure).

27. NOTICE.
    -------
27.1.    Except as otherwise specifically provided herein, any notice, demand,
         request, consent approval, or communication that either Party desires
         or is required to give the other Party or any other person, shall be in
         writing and shall be deemed to have been duly delivered upon personal
         delivery, upon delivery by electronic facsimile transmission (verified
         by the sending machine), the following day after sending by overnight
         courier, or as of the second business day after mailing by United
         States registered or certified mail, return receipt requested, postage
         prepaid, addressed to the other Party at the address designated at the
         beginning of this Lease. Either Party may change its address by
         notifying the other Party of the change of address.

                                       47

<PAGE>

28. WAIVER.
    -------
28.1.    A delay or omission in the exercise of any right or remedy of Landlord
         on any default by Tenant shall neither impair such right or remedy nor
         be construed as a waiver, nor shall any custom or practice which may
         grow up between the parties in the administration of the terms hereof
         be deemed a waiver of or in any way affect the right of Landlord to
         insist upon the performance by Tenant in strict accordance with said
         terms.

28.2.    The receipt and acceptance by Landlord of delinquent rent shall not
         constitute a waiver of any other default; it shall constitute only a
         waiver of timely payments for the particular rent payment involved. No
         payment by Tenant, or receipt by Landlord, of a lesser amount than the
         rent payment herein stipulated shall be deemed to be other than on
         account of the rent, nor shall any endorsement or statement on any
         check or any letter accompanying any check or payment as rent by deemed
         an accord and satisfaction, (unless Landlord expressly agrees to an
         accord and satisfaction in a separate writing duly executed by
         Landlord). Landlord may accept any such check or payment without
         prejudice to Landlord's right to recover the balance of such rent,
         including any interest and late charges, or pursue any other remedy
         provided in this Lease.

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

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

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

28.6.    Any claim Tenant may have against Landlord for default in performance
         of any of Landlord's obligations under this Lease is deemed waived
         unless Tenant notifies Landlord of the default within 30 days after
         Tenant knew or should have known of the default.

29. SALE OR TRANSFER OF PREMISES.
    -----------------------------
29.1.    Upon consummation of a sale, exchange, assignment or other transfer of
         all or any portion of the Premises, Landlord shall be released from any
         liability and all obligations thereafter accruing under this Lease.
         Landlord's covenants and obligations in this Lease bind each successive
         Landlord only during and with respect to its respective period of
         ownership. However, notwithstanding any such Transfer, the transferor
         remains entitled to the benefits of Tenant's releases and indemnity and
         insurance obligations (and similar obligations) under this Lease with
         respect to matters arising or accruing during the transferor's period
         of ownership.

29.2.    If Tenant has paid any Security Deposit or prepaid rent, Landlord shall
         transfer the Security Deposit or prepaid rent to Landlord's successor.
         Upon such transfer, Landlord shall be discharged from any further
         liability in reference to the Security Deposit or prepaid rent.

                                       48

<PAGE>

30. HOLDING OVER.
    -------------
30.1.    If Tenant, with Landlord's consent, remains in possession of the
         Premises after expiration or termination of the Lease, or after the
         date in any notice given by Landlord to Tenant terminating this Lease,
         such possession by Tenant shall be deemed to be a month-to-month
         tenancy terminable on one (1) months' notice given at any time by
         either Party, and neither a renewal hereof nor an extension for any
         further term. During such month-to-month tenancy, Tenant shall pay all
         rent required by this Lease. All provisions of this Lease except those
         pertaining to term shall apply to the month-to-month tenancy.
         Acceptance by Landlord of rent after such expiration or earlier
         termination shall not constitute a consent to a holding over hereunder
         or result in a renewal of this Lease. The provisions of this Article
         are in addition to and do not affect Landlord's right of re-entry or
         any other rights of Landlord under this Lease or as otherwise provided
         by law.

31. SURRENDER OF PREMISES.
    ----------------------
31.1.    Upon expiration of the term or within ten (10) days after termination
         of the Lease, Tenant shall quit and surrender to Landlord the Premises
         and all Tenant's improvements and alterations in good condition, order,
         and repair, except for: (i) ordinary wear and tear occurring after the
         last necessary maintenance made by Tenant; (ii) destruction to the
         Premises covered by the Article titled "Destruction;" or (iii)
         alterations that Tenant has the right to remove or is obligated to
         remove under the provisions of the Article titled "Alterations." Tenant
         shall remove all debris, rubbish, furniture, equipment, business and
         trade fixtures, free standing cabinet work, shelving, movable
         partitions, and other articles of personal property owned by Tenant or
         installed or placed by Tenant at its expense in the Premises, and
         perform all restoration made necessary by such removal, prior to
         surrendering the Premises to Landlord. Failing such, Landlord may so
         repair the Premises and charge Tenant for same, or withhold such sums
         from any balance of the Security Deposit that may at the time remain.
         Tenant shall surrender all keys to the Premises to Property Manager or
         to Landlord at the place then fixed for Tenant's payment of Basic Rent
         or as Landlord or Property Manager otherwise direct. Tenant will also
         inform Landlord of all combinations on locks, safes and vaults, if any,
         in the Premises or on the Project.

31.2.    Landlord can elect to retain or dispose of (in any manner) any
         alterations or Tenant's personal property that Tenant does not remove
         from the Premises on expiration or termination of the Lease by giving
         at least ten (10) days' notice to Tenant. Title to any such alterations
         or Tenants' personal property that Landlord elects to retain or dispose
         of after expiration of the ten (10) day period shall vest in Landlord.
         Tenant waives all claims against Landlord for any damage to Tenant
         resulting from Landlord's retention or disposition of any such
         alterations or Tenant's personal property. Tenant shall be liable to
         Landlord for Landlord's costs for storing, removing, and disposing of
         any alterations or Tenant's personal property. Landlord may store
         Tenant's personal property in a public warehouse or elsewhere for the
         account and at the expense and risk of Tenant. If Tenant shall fail to
         pay the cost of storing any such property after it has been stored for
         a period of thirty (30) days or more, Landlord may sell any or all of
         such property at public or private sale, in such manner and at such
         times and places as Landlord, in its sole discretion, may deem proper,
         without notice to or demand upon Tenant. Landlord shall apply the
         proceeds of such sale as follows:

         31.2.1.  First, to the costs and expenses of such sale, including
                  Landlord's attorneys' fees;

         31.2.2.  Second, to the payment of the expense of or charges for
                  removal and storing any such property;

         31.2.3.  Third, to the payment of any other sum of money which may then
                  or thereafter be due to Landlord from Tenant under any of the
                  terms of this Lease; and

         31.2.4.  Fourth, the balance, if any, to Tenant.

                                       49

<PAGE>

31.3.    If Tenant fails to surrender the Premises to Landlord upon expiration
         or ten (10) days after termination of the Lease as required by this
         Article, Tenant shall hold Landlord harmless from all damages resulting
         therefrom, including, without limitation, claims made by a succeeding
         Tenant resulting from Tenant's failure to surrender the Premises.

31.4.    The voluntary or other surrender by Tenant or a mutual cancellation of
         this Lease shall not work a merger, and shall, at the election of
         Landlord, either terminate all or any existing subleases or
         subtenancies or may operate as an assignment to it of any or all of
         such subleases or subtenancies. Landlord shall exercise its election
         within one (1) month of the event so requiring.

32. ABANDONMENT.
    ------------
32.1.    Tenant shall not vacate nor abandon the Premises at any time during the
         term of this Lease, nor permit the Premises to remain unoccupied for a
         period of longer than ten (10) consecutive days during the term of this
         Lease. If Tenant shall abandon the Premises, any personal property
         belonging to Tenant and left on the Premises shall be dealt with or
         disposed of as provided in the Article titled "Surrender of Premises."

33. ATTORNEYS' FEES.
    ----------------
33.1.    In the event Landlord or Tenant retains an attorney to enforce any
         provision of this Lease against the other, the Party which establishes
         a breach of this Lease shall be entitled to recover from the other
         Party all expenses incidental to such enforcement incurred in any legal
         proceeding whatsoever (including but not limited to insolvency,
         bankruptcy, arbitration, declaratory relief, unlawful detainer or other
         litigation), regardless of whether or not suit is brought. Such
         expenses include, but are not limited to, attorneys' fees, appraisers'
         fees, accountants' fees, service of process, filing fees, court and
         court reporter costs, investigative costs, expert witness fees, and the
         cost of any bonds, whether taxable or not. Such reimbursement shall be
         included in any judgment or final order issued in any proceeding. If,
         following an event of default by Tenant, Landlord employs a collection
         agency and/or an attorney to recover delinquent charges or to otherwise
         enforce this Lease after Tenant's notice and grace period, if any,
         expires, Tenant agrees to pay all collection agency fees and attorneys'
         fees (whether or not litigation is commenced or pursued to final
         judgment) charged to Landlord in addition to rent, late charges,
         interest and other sums payable under this Lease. In addition, Tenant
         shall pay a charge of Two Hundred Dollars ($200) to Landlord for
         preparation of a demand for delinquent rent or other notice of default.
         Any expenses to which Landlord is entitled shall be considered as rent
         and are payable within ten (10) days of notice to Tenant of the amount
         due.

33.2.    If Landlord is named as a defendant in any suit brought against Tenant
         in connection with or arising out of Tenant's occupancy hereunder,
         Tenant shall pay to Landlord its costs and expenses incurred in such
         suit, including without limitation, its actual professional fees
         including, but not limited to, the fees of appraisers, accountants,
         expert witnesses, and attorneys fees.

34. ACCESS; CHANGES IN BUILDING FACILITIES; NAME.
    ---------------------------------------------
34.1.    Landlord reserves, for the purpose of operation, maintenance,
         decoration, and repair, access to:

         34.1.1.  All walls, windows, and doors bounding the Premises, except
                  the inside surfaces thereof (including exterior building
                  walls, core corridor walls and doors, and any core corridor
                  entrance); and

                                       50

<PAGE>

         34.1.2.  All space in or adjacent to the Premises used for shafts,
                  stacks, pipes, conduits, fan rooms, ducts, electric or other
                  utilities, sinks, or other Building facilities, and the use
                  thereof, as well as access thereto through the Premises.
                  Landlord may install, use and maintain pipes, ducts, and
                  conduits within the demising walls, bearing columns and
                  ceilings of the Premises.

34.2.    Landlord may, at any time before or after completion of the Project,
         without incurring any liability to Tenant therefore, make such changes
         in or to the Project and the fixtures and equipment thereof or any
         other portion of the Project, as well as in or to the street entrances,
         halls, passages, stairways, and other improvements thereof, as Landlord
         may deem necessary or desirable, as long as such changes have no
         material adverse effect on Tenant's use of the Premises.

34.3.    Landlord may, at any time before or after completion of the Project,
         without incurring any liability to Tenant therefore, adopt or change
         any name or address or identity for the Project (or any part thereof)
         including roof signs, entrances, signage, and other Project
         identification.

35. QUIET ENJOYMENT.
    ----------------
35.1.    Notwithstanding any subordination as provided in the Article titled
         "Offset Statement, Attornment, Subordination," if Tenant is not in
         breach under the covenants made in this Lease, Landlord covenants that
         Tenant shall have peaceful and quiet enjoyment of the Premises without
         hindrance on the part of Landlord, and Landlord shall defend Tenant in
         the peaceful and quiet enjoyment of the Premises against claims of all
         persons claiming through or under the Landlord.

36. FORCE MAJEUR.
    -------------
36.1.    Any prevention, delay or stoppage due to strikes, lockouts, labor
         disputes, acts of God, inability to obtain labor or materials or
         reasonable substitutes therefore, governmental restrictions,
         regulations, or controls, enemy or hostile governmental action, civil
         commotion, fire or other casualty, and other causes; or, any failure or
         defect in the supply, quantity or character of gas, electricity or
         water furnished to the Premises, by reason of any requirement, act or
         omission of the public utility or others furnishing the Project with
         gas, electricity or water, or for any other reason, whether similar or
         dissimilar to the above beyond the reasonable control of the Party
         obligated to perform, shall excuse the performance by such Party for a
         period equal to that resulting from such prevention, delay or stoppage,
         except those obligations of Tenant to make payment for rental and other
         charges pursuant to the terms of this Lease.

37. RELATIONSHIP OF PARTIES.
    ------------------------
37.1.    The relationship of the Parties hereto is that of Landlord and Tenant,
         and it is expressly understood and agreed that Landlord is not in any
         way or for any purpose a partner of Tenant, or a joint venturer with
         Tenant in the conduct of Tenant's business or otherwise.

38. GENERAL PROVISIONS.
    -------------------
38.1.    Unless the context otherwise indicates, whenever used in this Agreement
         the word "party" or "parties" means Landlord and/or Tenant, as the
         context may require.

38.2.    All pronouns and any variations thereof shall be deemed to refer to the
         masculine, feminine or neuter, singular or plural, as the identity of
         the person, persons, entity or entities may require.

38.3.    Titles and captions in this Agreement are inserted for convenience of
         reference only and do not define, describe, amplify or limit the scope
         of the intent of this Agreement or any of the terms hereof.

                                       51

<PAGE>

38.4.    References in this Agreement to Articles, Sections, Subsections, and
         Exhibits are to Articles, Sections, Subsections and Exhibits herein and
         hereto unless otherwise indicated.

38.5.    Any exhibits, schedules or descriptions referred to in this Agreement
         are expressly incorporated herein by reference as if set forth in full,
         whether or not attached hereto.

38.6.    The representations, warranties, covenants, agreements and indemnities
         set forth in or made pursuant to this Agreement, or in any instrument,
         certificate, opinion, or other writing provided for in it, shall remain
         operative, shall be deemed made upon execution of this Agreement and
         shall not be merged therein.

38.7.    This Agreement contains the entire agreement between the parties
         relating the transactions contemplated hereby. All prior or
         contemporaneous agreements, understandings, representations and
         statements, oral or written, are merged herein. Except as expressly
         provided herein, there are no representations or warranties between the
         parties.

38.8.    Each party has relied upon its own examination of the entire Agreement,
         and the warranties, representations, and covenants expressly contained
         in the Agreement itself. The failure or refusal of either party to
         inspect the Agreement or other documents, or to obtain legal advice
         relevant to this transaction, constitutes a waiver of any objection,
         contention, or claim that might have been based upon such reading,
         inspection or advice. The submission of this Lease by Landlord, its
         agent, or its representative for examination or execution by Tenant
         does not constitute an option or offer to lease the Premises or a
         reservation of the Premises in favor of Tenant, it being intended that
         this Lease shall only become effective upon Landlord's execution and
         delivery of a fully executed counterpart thereof to Tenant.

38.9.    The parties acknowledge that this Agreement, in its final form, is the
         result of the combined efforts of the parties hereto and any counsel
         who may have advised the parties, neither of which has acted under any
         duress or compulsion, whether legal, economic, or otherwise. Should any
         provision of this Agreement be found to be ambiguous in any way, such
         ambiguity shall not be resolved by construing this Agreement in favor
         of or against any party herein, but rather by construing the terms of
         this Agreement fairly and reasonably in accordance with their generally
         accepted meaning and the purposes for which this Agreement is made.
         Landlord's submission of this instrument to Tenant for examination or
         signature by Tenant does not constitute a reservation of or an option
         to lease and is not effective as a lease or otherwise until Landlord
         and Tenant both execute and deliver this Lease. The parties agree that,
         regardless of which party provided the initial form of this Lease,
         drafted or modified one or more provisions of this Lease, or compiled,
         printed or copied this Lease, this Lease is to be construed solely as
         an offer from Tenant to lease the Premises, executed by Tenant and
         provided to Landlord for acceptance on the terms set forth in this
         Lease, which acceptance and the existence of a binding agreement
         between Tenant and Landlord may then be evidenced only by Landlord's
         execution of this Lease.

                                       52

<PAGE>

38.10.   No modification, waiver, amendment, discharge or change of this
         Agreement shall be valid unless the same is in writing and signed by
         the party, or their successor in interest, against which the
         enforcement of such modification, waiver, amendment, discharge or
         change is or may be sought.

38.11.   In the event any term, covenant, condition, provision or agreement
         herein contained is held to be invalid or void by any court of
         competent jurisdiction, the invalidity of any such term, covenant,
         condition, provision or agreement shall in no way affect any other
         term, covenant, condition, provision or agreement herein contained.

38.12.   Each of the Parties shall fully cooperate with the other in connection
         with the requirements imposed by this Agreement and each agree to take
         such further actions and to execute and deliver such further documents,
         with acknowledgment or affidavit, if required, as may be reasonably
         necessary to carry out the purposes of this Agreement and to facilitate
         the satisfaction of any conditions set forth herein.

38.13.   This Agreement, and any dispute arising hereunder, shall be construed
         and enforced in accordance with, and be governed by, California Laws.
         The parties hereto agree that proper jurisdiction and venue for any
         suit brought to interpret or enforce any term or provision of this
         Agreement shall be in San Diego County, California. The reference in
         this Lease to any legislation or any portion thereof shall be read as
         though the words "or any statutory modifications or re-enactment
         thereof or any statutory provisions substituted thereof" were added to
         such reference.

38.14.   This Agreement may be executed in any number of counterparts, each of
         which shall be deemed to be an original, but all of which together
         shall constitute one and the same instrument.

38.15.   Whenever consent or approval of either Party is required, that Party
         shall not unreasonably withhold such consent or approval.

38.16.   If Tenant is a corporation, partnership, a limited liability company,
         or other entity, execution of this Lease by Tenant constitutes a
         representation by Tenant and the officers, partners, members, managers,
         or other agents of Tenant executing this Lease that this Lease has been
         duly authorized by Tenant, corporation, partnership, or other entity.
         Tenant shall provide to Landlord a certified copy of a duly adopted
         resolution of its partners or the Board of Directors of Tenant (or
         other appropriate evidence of authority) authorizing the execution and
         delivery of this Lease and naming the officers that are authorized to
         execute this Lease on behalf of the corporation.

38.17.   If Tenant is an entity, Tenant will, within 10 days after Landlord's
         written request, deliver to Landlord: (a) Certificate(s) of Good
         Standing from the state of formation of Tenant and, if different, the
         State, confirming that Tenant is in good standing under the laws
         governing formation and qualification to transact business in such
         state(s); and (b) a copy of Tenant's organizational documents and any
         amendments or modifications thereof, certified as true and correct by
         an appropriate official of Tenant. Tenant and each individual signing
         this Lease on behalf of Tenant represents and warrants that they are
         duly authorized to sign on behalf of and to bind Tenant and that this
         Lease is a duly authorized, binding and enforceable obligation of
         Tenant.

                                       53

<PAGE>

38.18.   All parties signing this Lease as Tenant and any Guarantor(s) of this
         Lease: (1) is jointly and severally liable for the keeping, observing
         and performing of all of the terms, covenants, conditions, provisions
         and agreements of this Lease to be kept, observed and performed by
         Tenant; and (2) the term "Tenant" as used in this Lease shall mean and
         include each of them jointly and severally. The act of, or notice from,
         or notice or refund to, or the signature of any one or more of them,
         with respect to the tenancy of this Lease, including, but not limited
         to any renewal, extension, expiration, termination or modification of
         this Lease, shall be binding upon each and all of the persons executing
         this Lease as tenant with the same force and effect as if each and all
         of them had so acted or so given or received such notice or refund or
         so signed.

38.19.   This Lease shall be binding on and inure to the benefit of the Parties
         and their heirs, personal representatives, successors, and assigns.,
         except as provided in the Articles titled "Assignment" and "Sale or
         Transfer of the Premises," and all of the Parties hereto shall be
         jointly and severally liable for the covenants contained herein.
         Notwithstanding the immediately preceding sentence or any other
         provision of this Lease, this Lease shall not be assigned or assignable
         by operation of law. In no event shall this Lease be an asset of Tenant
         in any receivership, bankruptcy, insolvency, or reorganization
         proceeding.

38.20.   All provisions, whether covenants or conditions, on the part of Tenant
         shall be deemed to be both covenants and conditions.

38.21.   The definitions contained in this Lease shall be used to interpret this
         Lease.

38.22.   Rent and all other sums payable under this Lease shall be paid in
         lawful money of the United States of America.

38.23.   Except as may otherwise be expressly stated, each payment required to
         be made by Tenant shall be in addition to and not in substitution for
         other payments to be made by Tenant.

38.24.   Tenant's execution of this Lease is conditioned upon Landlord's
         execution on or before the thirtieth (30th) day following the date of
         this Lease.

38.25.   Tenant recognizes that the General Partner of Landlord (i) is licensed
         as an attorney in the State of California; (ii) is acting entirely on
         behalf of Landlord in this Lease; and (iii) has no fiduciary
         relationship with Tenant.

38.26.   Time is of the essence with respect to the performance of every
         provision of this Lease in which time of performance is a factor.

38.27.   All of Tenant's obligations under this Lease (together with interest on
         payment obligations at the rate of 10% per annum or the maximum amount
         allowed by law if that rate is higher than 10%) accruing prior to
         expiration or other termination of this Lease survive the expiration or
         other termination of this Lease. Further, all of either Party's
         releases and indemnification defense and hold harmless obligations to
         the other Party under this Lease, survive the expiration or other
         termination of this Lease, without limitation.

38.28.   With the exception of the real estate brokerage commission, if any,
         payable to the party identified in the Definitions section, pursuant to
         separate written agreement with Landlord, and which commission Landlord
         hereby agrees to pay, each of the parties represents to the other party
         that it has not incurred, and agrees to protect, defend, indemnify and
         hold harmless the other party from and against, any real estate
         commission, finder's fee or other compensation arising out of or in
         connection with this Lease or the transaction of which this Lease is a
         part.

                                       54

<PAGE>

         EXECUTED as of the day and year first above written, at San Diego
County, California.

LANDLORD                               TENANT

SQUARE ONE PARTNERS,                   LA JOLLA FRESH SQUEEZED COFFEE CO., INC.,

a California general partnership       a Washington corporation

By:_____________________________       By:_____________________________

       Michael P. Cafagna,                      Richard Gartrell,

       General Partner                          CFO

                                       55

<PAGE>

                                   EXHIBIT "A"
                                    SITE PLAN

<PAGE>

                                   EXHIBIT "B"

                           RANCHO VISTA BUSINESS PARK
                              RULES AND REGULATIONS

         These Rules and Regulations (referred to herein as the "Rules") are
adopted by Landlord pursuant to the terms of the lease (referred to herein as
the "Lease") executed by Landlord and Tenant for the Premises located within the
Rancho Vista Business Park (referred to herein as the "Project"). Subject to any
restrictions set forth in the Lease, Landlord may, in Landlord's sole
discretion, enact, rescind, alter or waive any rule or regulation at any time
prescribed for the Project when, in Landlord's judgment, it is necessary,
desirable or proper for the best interest of the Project or its Tenants. Any
such amendment shall be effective immediately upon written notice to Tenant.

         Tenant's use of the Premises shall be in accordance with all of the
following:

1. GENERAL RULES.
   --------------

         1.1. Tenant shall comply with all laws concerning the Premises or
Tenant's use of the Premises, including, without limitation, the obligation at
Tenant's cost to alter, maintain, or restore the Premises in compliance and
conformity with all laws relating to the condition, use, or occupancy of the
Premises during the term.

         1.2. Tenant shall not use the Premises in any manner that will
constitute waste, nuisance, or an unreasonable annoyance to the quiet enjoyment
of the tenants of the Building (including, without limitation, the use of
loudspeakers or sound or light apparatus that can be heard or seen outside the
Premises).

         1.3. Tenant shall not use the Premises for sleeping, washing clothes,
cooking, or the preparation, manufacture, or mixing of anything that might emit
any odor or objectionable noises or lights.

         1.4. Tenant shall not do or permit anything on the Premises that will
cause damage to the Premises. Any overloading of electrical circuits shall be
the responsibility of Tenant.

         1.5. After opening for business, Tenant shall continuously remain open
for business at least those days and hours as is customary for a business of a
like character in the city in which the Premises are situated.

         1.6. Tenant shall not conduct or permit any sale by auction on the
Premises.

         1.7. Without the written consent of Landlord, Tenant shall not use the
name of the Project in connection with or in promoting or advertising the
business of Tenant except as Tenant's address.

         1.8. Tenant shall not sell, or permit the sale at retail, of
newspapers, magazines, periodicals, theater tickets or any other goods or
merchandise to the general public in or on the Premises. However, the preceding
limitation shall not apply to the retail sale of goods and merchandise
manufactured or assembled by Tenant at the Premises as required by the Lease.
Tenant shall not make any door-to-door solicitations of business from other
Tenants in the Project. Tenant shall not use the Premises for any business or
activity other than those specifically provided for in Tenant's Lease.

                                        1

<PAGE>

         1.9. Tenant, its employees, and or its business customers shall not
disturb, solicit, or canvas any occupant of the Project and shall cooperate to
prevent same.

         1.10. No sign, placard, picture, advertisement, name or notice shall be
installed or displayed on any part of the outside or inside (if visible from the
exterior) of any building without the prior written consent of Landlord.
Landlord shall have the right to remove any item installed or displayed in
violation of this Rule without notice to and at the expense of Tenant. All
approved signs or lettering on doors and walls shall be printed, painted,
affixed or inscribed at the expense of Tenant and in a configuration and style
approved by Landlord, in its sole discretion.

         1.11. Tenant shall not place anything against or near glass partitions,
doors or windows that may appear unsightly from outside the Premises. If
Landlord objects in writing to any curtains, blinds, shades, screens or hanging
plants or other similar objects attached to or used in connection with any
window or door of the Premises, or placed on any window sill, which is visible
from the exterior of the Premises, Tenant shall immediately remove and/or
discontinue such use.

         1.12. Tenant shall not place a load upon any floor of the Premises that
exceeds the load per square foot that such floor was designed to carry and which
is allowed by law. Landlord shall have the right to prescribe the weight, size
and position of all equipment, materials, furniture or other property brought
into the Project. Heavy objects shall, if considered necessary by Landlord,
stand on such platforms as determined by Landlord to be necessary to properly
distribute the weight. All such platforms shall be provided at Tenant's expense.
In the event any of Tenant's business machines or mechanical equipment cause
noise or vibration that may be transmitted to any part of any structure of the
Project to such a degree as to be objectionable to Landlord or to any other
Tenants in the Project, Tenant, at Tenant's sole expense, shall place and
maintain any such equipment on vibration eliminators or other devices sufficient
to eliminate noise or damage to any equipment or other property. All damage done
to the Project by maintaining or moving such equipment or other property shall
be repaired at the expense of Tenant.

         1.13. No material, equipment, supplies, or products shall be stored or
permitted to remain in the Project outside a permanent structure unless prior
approval is obtained from Landlord. Approval of outside storage will be granted
only where storage is visually screened from all approaches and where it is
allowed by applicable zoning codes.

         1.14. All Tenant's installations, improvements and alterations shall be
carried out in a manner and method designed to minimize removal of such items.
Tenant shall repair any damage resulting from Tenant's installations,
improvements and alterations and the removal thereof upon termination of the
Lease. No Tenant shall lay linoleum, tile, carpet or other similar floor
coverings so that the same shall be affixed to the floor of the Premises in any
manner except as approved by the Landlord. The expense of repairing any damage
resulting from a violation of this rule or removal of any floor covering shall
be borne by the Tenant by whom, or by whose contractors, employees or invitees,
the floor covering shall have been laid.

         1.15. Tenant shall not install any radio antenna, television antenna,
or satellite dishes, loudspeaker or other devices on the roof or exterior walls
of any building without the prior written consent of Landlord. Tenant shall not
interfere with radio or television broadcasting or reception from or in the
Project or elsewhere.

         1.16. Tenant shall not use any method of heating or air-conditioning
other than that supplied by Landlord, except with the written consent of
Landlord.

                                        2

<PAGE>

         1.17. The toilet rooms, toilets, urinals, wash bowls and other
apparatus shall not be used for any purpose other than that for which they were
constructed and no foreign substance of any kind whatsoever shall be thrown
therein. The expense of any breakage stoppage or damage resulting from the
violation of this rule shall be borne by the Tenant who, or whose employees or
invitees, shall have caused it.

         1.18. Tenant shall not waste water or other utilities that are commonly
metered to the Project.

         1.19. Concurrently with Tenant's occupancy of the Premises, Landlord
shall furnish Tenant, free of charge, one set of keys to each door lock on the
Premises. Tenant may have additional keys made at Tenant's expense. Tenant shall
not alter any lock or install any new additional locks or bolts on any door of
the Premises without the written consent of Landlord. Tenant, upon the
termination of its Lease, shall deliver to Landlord all of the existing keys to
all doors of the Premises.

         1.20. Tenant assumes any and all responsibility for protecting its
Premises from theft, robbery and pilferage, which includes keeping doors locked
and other means of entry to the Premises closed. Landlord shall have no duty to
provide security protection for the Premises at any time or to monitor access
thereto.

         1.21. Tenant shall see that the doors of the Premises are closed and
securely locked before leaving the Premises and that all water faucets, water
apparatus and electricity are entirely shut off before Tenant or Tenant's
employees leave the Premises. Tenant shall be responsible for any damage to the
Premises, Project or other Tenants caused by a failure to comply with this rule.

         1.22. No telegraphic, telephonic, burglar alarm or similar service
shall be installed without the prior written consent of Landlord. Tenant agrees
to acquire, at Tenant's expense, all necessary permits for any burglar or
security alarm systems and provide Landlord with copy of same.

         1.23. Tenant shall store all its trash and garbage within its Premises
or in other facilities provided by Landlord and in accordance with directions
issued from time to time by Landlord. Tenant shall not place in any trash box or
receptacle any material which cannot be disposed of in the ordinary and
customary manner of trash and garbage disposal.

         1.24. Tenant shall not use or keep in the Premises or about the Project
any kerosene, gasoline, or flammable or combustible fluid or material other than
those limited quantities necessary for the operation or maintenance of office
equipment. All flammable liquids and combustible rags are to be stored in
appropriate storage cabinets approved by the fire department. Tenant shall not
use or permit to be used in the Premises any foul or noxious gas or substance,
or permit or allow the Premises to be occupied or used in a manner offensive or
objectionable to Landlord or other occupants of the Project by reason of noise,
odors or vibrations. No animals or birds shall be brought in or kept in or about
the Premises.

         1.25. Deliveries of equipment, materials, furniture, packages,
supplies, merchandise or other property shall be received at the Project in a
manner and method which does not impede or interfere with other Tenants or in
the operation of any portion of the Project. Tenant shall be responsible for all
repairs and replacements to the Project required as a result of damage or injury
caused by deliveries to Tenant's Premises.

                                        3

<PAGE>

         1.26. Tenant shall not obstruct the sidewalks, halls, passages, exits
and entrances used by them for any purpose other than for ingress to and egress
from their respective Premises. The halls, passages, exits, entrances and roof
are not for the use of the general public and the Landlord shall in all cases
retain the right to control thereof and prevent access thereto by all persons
whose presence in the judgment of the Landlord shall be prejudicial to the
safety, character, reputation and interests of the Project or any of its
Tenants. However, nothing herein contained shall be construed to prevent access
by persons with whom the Tenant normally deals in the ordinary course of
Tenant's business unless such persons are engaged in illegal activities. No
Tenant and no employees or invitees of any Tenant shall go upon the roof of the
Premises or any other building in the Project.

         1.27. Tenant shall comply with all safety, fire protection and
evacuation procedures and regulations established by Landlord or any
governmental agency having authority over the Project.

         1.28. Tenant shall be responsible for the enforcement of these Rules as
they pertain to Tenant's employees, agents clients, customers, invitees and
guests.

2. PARKING RULES.
   --------------

         2.1. Landlord shall not be responsible for loss, injury or damage to
any vehicle arising from the use of parking in the Project. In the event the
general exclusion of liability set forth in the preceding sentence is determined
not to apply to any particular claim, specific limitations on liability set
forth below shall apply to any claim against Landlord arising in connection with
the use of parking areas in the Project. All claimed damage or loss must be
reported and itemized in writing, and delivered to Landlord within two (2)
business days after any claimed damage or loss occurs. Any claim not so made is
waived. Landlord has the option to make repairs, at its expense, of any claimed
damage within two (2) business days after filing of any claim. In all court
actions the burden of proof to establish a claim remains with Tenant. Court
actions by Tenant for any claim must be filed within ninety (90) days from date
of parking when a claimed loss occurred. Landlord is not responsible for damage
by water, fire or defective brakes, or parts, or for the act or omissions of
others, or for articles left in the car. The total liability of Landlord is
limited to Two Hundred Fifty and No/100 Dollars ($250.00) for all damages or
loss to any vehicle. Landlord is not responsible for loss of use.

         2.2. Tenant shall not park or permit the parking of any vehicle under
Tenant's reasonable control in any parking areas designated by Landlord as areas
for parking by visitors to the Project or for deliveries or assigned to other
Tenants or occupants of the Project. Tenant shall not leave vehicles in the
parking areas overnight nor park any vehicles in the parking areas other than
automobiles, motorcycles, motor driven or non-motor driven bicycles.

         2.3. All vehicles must be parked only within the painted stall lines of
a single parking stall. Parking in any other area shall subject the vehicle to
removal. All directional signs and arrows must be observed. The speed limit
within all parking areas shall be five (5) miles per hour.

         2.4. Every parker is required to park and lock his or her own vehicle.
The parker assumes all responsibility for damage to a vehicle or theft of
property from a vehicle.

         2.5. Parking areas are for the temporary parking of vehicles only. No
storage of vehicles or other items will be permitted. Washing, waxing, cleaning
or servicing of any vehicle is prohibited. No vehicle repair of any type will be
permitted within the industrial units or on or about the common areas.

         2.6. Tenant shall acquaint all persons to whom Tenant assigns parking
spaces of these Rules. Parking attendants, if any, are not authorized to make or
allow any exceptions to the Rules.

                                        4

<PAGE>

3. MISCELLANEOUS PROVISIONS.
   -------------------------

         3.1. Landlord reserves the right to exclude or expel from the Project
any person who, in Landlord's judgment, is intoxicated or under the influence of
liquor or drugs or who is in violation of any of the Rules. However, Landlord
shall be under no obligation to do so and shall have no liability to Tenant on
account of Landlord's failure to exclude any person.

         3.2. Landlord may, in its sole discretion, waive any one or all of
these Rules for the benefit of Tenant or any other Tenant. However, no such
waiver by Landlord shall be construed as a waiver of any other Rule, nor prevent
Landlord from thereafter enforcing any Rules against any or all of the Tenants
of the Project.

         3.3. The Rules are in addition to, and shall not be construed to in any
way modify or amend, in whole or in part, the terms, covenants, agreements and
conditions of Tenant's Lease of its Premises in the Project. The Rules
supplement the Lease and in the event of any conflict or inconsistency between
the Lease and the Rules, the Lease shall control.

LANDLORD                               TENANT

SQUARE ONE PARTNERS,                   LA JOLLA FRESH SQUEEZED COFFEE CO., INC.,

a California general partnership       a Washington corporation

By:_____________________________       By:_____________________________

     Michael P. Cafagna,                        Richard Gartrell,

     General Partner                            CFO

                                        5
<PAGE>

                                   EXHIBIT "C"
                                 FLOOR PLAN AND
                               TENANT IMPROVEMENTS

         The cost of the following Tenant Improvements shall be borne by
         Landlord. Landlord shall provide the building to Tenant with the
         following modifications as per the attached floor plan approved by
         Tenant and Landlord. Improvements to include the following;

1.       Replace Carpet in ALL Currently Carpeted Areas & Add Hallways With 26
         Oz. Commercial Grade Glue Down "Queen Sequence #Q0617", "Front to Back"
         Pattern. Cove Base Shall be Carpet to Match.

2.       REPLACE FLOORING IN THE FOLLOWING AREAS:
         a.       Lunchrooms with "Mohawk Hellas Beige" ceramic tile with 6"
                  tile base.
         b.       Lab/ Production Area with "Mannington Fine Fields, Cool Beige"
                  sheet vinyl flooring with self cove and heat welded seams.
         c.       Warehouse offices flooring will be carpet "Queen Sequence
                  #Q0617", "Front to Back" pattern. Cove base shall be carpet to
                  match.
         d.       Front entry tile will be replaced with "Lago Maggiore " tiles
                  with 6" tile base.
         e.       Bathrooms with "Mohawk Hellas Biege" ceramic tile with 6" tile
                  base.

3.       MEN'S BATHROOMS:
         a.       Replace bathroom partitions with "Wilsonart, Pebble, #D337"
                  color.
         b.       Replace FRP. Tenant shall be allowed to choose color.
         c.       Replace toilets where necessary.
         d.       Replace any existing vanity/ sink. Laminate shall be
                  Wilsonart. "Pebble #D337".

4.       WOMEN'S BATHROOMS:
         a.       Replace bathroom partitions, color to be Wilsonart "Pebble
                  #D337".
         b.       Replace FRP. Tenant shall be allowed to choose color.
         c.       Replace vanity /sink. Laminate shall be Wilsonart. "Pebble
                  #D337".

5.       MISCELLANEOUS IMPROVEMENTS:
         a.       Replace ceiling tiles where missing, broken or stained.
         b.       Repair and/or replace doors, locks sets, hardware & closers
                  that do not function properly.
         c.       Paint interior "Navajo White" & touch up exterior of building.
         d.       Paint Lab/ Production areas and staging area "Bright White"
                  high gloss.
         e.       Replace light bulbs interior and exterior where needed.
         f.       Repair roof penetrations left by previous tenant.
         g.       Reinstall handrail on lobby stairs.
         h.       General overall clean up of warehouse & interior.
         i.       Paint warehouse ceiling.
         j.       Remove two (2) warehouse offices located at the north end of
                  the building.

                                        1

<PAGE>

         k.       Re-laminate exposed laminate surfaces on cabinetry.
                  Countertops shall be Pionite, "Slate Impressions #AV741S".
                  Cabinets shall be Poinite, "Natural Birdseye #WM901-S".
         l.       Install 335 lineal feet of 6" drywall walls in warehouse.
         m.       Replace missing double doors in lab area.
         n.       Install a 4' door with glass window in lab/ production area.
         o.       From lab to warehouse, close opening in lab area with drywall.
         p.       Add one wall on the second floor to create an additional
                  conference room with a door and two sidelights. Door to match
                  existing interior doors.
         q.       Replace trash enclosure doors.
         r.       Landlord shall be responsible for the cost and construction of
                  removing the storefront glass in the warehouse and close
                  opening with drywall. Tenant shall be responsible for
                  re-pouring any concrete in this area after storefront is
                  removed.

     In the event that any upgrades or additional Tenant Improvements (referred
     to herein as "Extras") are requested by Tenant, such Extras shall be
     installed at the expense of the Tenant. Tenant shall request any Extras in
     writing. Following receipt of Tenant's written request, Landlord will
     prepare and provide to Tenant an estimate of the price of such Extras.
     Prior to commencement of installation of the requested Extras, Tenant shall
     pay to Landlord fifty percent (50%) of the amount of the estimated price of
     the Extras. Upon completion or immediately prior to occupancy, whichever
     comes first, Tenant shall pay to Landlord the balance of the actual price
     of the Extras.

                                           Landlord's Initials:______________

                                           Tenant's Initials: _______________

                                        2

<PAGE>

                                   EXHIBIT "C"
                                 FLOOR PLAN AND
                       CHANGES TO THE TENANT IMPROVEMENTS

                                            Landlord's Initials: ______________

                                            Tenant's Initials: ________________

                                        3

<PAGE>

                                   EXHIBIT "C"
                                 FLOOR PLAN AND
                          EXISTING TENANT IMPROVEMENTS
                                   FIRST FLOOR

                                             Landlord's Initials: ______________

                                             Tenant's Initials: ________________

                                        4

<PAGE>

                                   EXHIBIT "C"
                                 FLOOR PLAN AND
                          EXISTING TENANT IMPROVEMENTS
                                  SECOND FLOOR

                                             Landlord's Initials: ______________

                                             Tenant's Initials: ________________

                                        5

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