Document:

<PAGE>

                                                                    Exhibit 10.7
                               BDG PISCATAWAY, LLC
                              6800 JERICHO TURNPIKE
                          SYOSSET, NEW YORK 11791-4498

                                                             As of March 1, 2000

Praecis Pharmaceuticals Incorporated
1 Hampshire Street
Cambridge, Massachusetts  02139-1572

Attention:        Kevin McLaughlin

                             Re: Lease dated as of August 19, 1998 (as amended,
                             the "Lease") by and between BDG Piscataway, LLC
                             ("Lessor") and Praecis Pharmaceuticals Incorporated
                             ("Lessee") for certain space, as more particularly
                             described in the Lease (the "Demised Premises"), in
                             the building (the "Building") located at the
                             property commonly known as 10 Knightsbridge Road,
                             Piscataway, New Jersey (the "Office Building Area")

  Dear Mr. McLaughlin:

                   Lessor and Lessee have entered into the above-referenced
  Lease with respect to the Demised Premises. Capitalized terms used herein and
  not otherwise defined shall have the meanings given to them in the Lease.
  Lessor and Lessee have agreed to enter into this side letter regarding certain
  provisions of the Lease. Notwithstanding anything to the contrary contained in
  the Lease, Lessor and Lessee, intending to be legally bound, agree that
  commencing on the date set forth above:

                        1.   Lessor and Lessee hereby acknowledge and confirm
                             the following: (a) the Demised Premises is serviced
                             currently by two (2) HVAC systems; (b) one (1) such
                             system was installed by Lessee and the other system
                             was installed by Lessor's predecessor in interest,
                             prior to the date that the Lease was executed; and
                             (c) all utilities servicing the Demised Premises
                             are currently sub-metered or metered and invoiced
                             in Landlord's name.

                        2.   Lessee hereby agrees to pay when due, the cost
                             of all utilities consumed by Lessee at the Demised
                             Premises (as reasonably determined by Lessor's
                             utility usage consultant), including, but not
                             limited to, electrical power consumed by Lessee at
                             the Demised Premises, including, but not limited
                             to, electrical power used for the HVAC servicing
                             the Demised Premises, as well as the overhead
                             lighting and electrical outlets located within the
                             Demised Premises. In connection with the foregoing,
                             Lessee further

<PAGE>

                             agrees: (a) that paragraph 3 and SCHEDULE 1 of
                             that certain letter agreement, dated August 19,
                             1998, executed by the parties hereto are deleted
                             in their entirety; (b) to pay to Lessor the
                             reasonable cost incurred by Lessor to have the
                             utility sub-meters for the Demised Premises read
                             and analyzed by a utility usage consultant hired by
                             Lessor; and (c) that all such amounts to be paid by
                             Lessee pursuant to this paragraph shall be
                             considered as Additional Rent.

                        3.   The Monthly Basic Rent due under the Lease shall
                             be reduced to: (a) $18,973.75 through the
                             expiration of the 60th month following the Rent
                             Commencement Date; and (b) $22,009.55 commencing on
                             the fifth anniversary of the Rent Commencement Date
                             through the expiration of the 120th month following
                             the Rent Commencement Date. The amount of the
                             Annual Basic Rent shall be adjusted accordingly.

                        4.   In the event that (a) Lessor requests Lessee to
                             establish an account in Lessee's name for any
                             utility service which is supplied to the Demised
                             Premises through a meter serving only the Demised
                             Premises, or (b) for any sub-metered utility
                             service supplied to the Demised Premises, Lessee
                             and Lessor determine that it is reasonably feasible
                             to have the Demised Premises separately metered for
                             such utility service, Lessee shall (at Lessee's
                             sole cost and expense) promptly cause the utility
                             company providing such service to the Demised
                             Premises to establish an account in Lessee's name
                             and/or install a meter to measure the applicable
                             utility consumption at the Demised Premises. Upon
                             such installation and/or establishment of such
                             account in Lessee's name, Lessor shall no longer be
                             obligated under the Lease to furnish such utility
                             service to the Demised Premises. All such amounts
                             to be paid by Lessee pursuant to this paragraph
                             shall be considered as Additional Rent.

                   Unless explicitly set forth above, all other terms and
conditions of the Lease remain unchanged and in full force and effect. Kindly
execute this letter below to acknowledge your acceptance of the above
provisions. This letter may be executed in counterparts.

                       [signatures commence on next page]

<PAGE>

  AGREED TO AND ACCEPTED BY:

  Praecis Pharmaceuticals Incorporated

  By:     /s/ Kevin F. McLaughlin
          --------------------------------
          Name:
          Title:   Sr. V.P. and C.F.O..

  BDG Piscataway, LLC

  BY:  BDG Piscataway, Inc.

  By:     /s/ David Blumenfeld
          --------------------------------
          Name:    David Blumenfeld
          Title:   Vice President<PAGE>

                                                                    PENNSYLVANIA

                     BRANDYWINE OPERATING PARTNERSHIP, L.P.,

                                    LANDLORD

                                       AND

                         THE IMMUNE RESPONSE CORPORATION

                                     TENANT

                                       FOR

                     660 ALLENDALE ROAD, KING OF PRUSSIA, PA

<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               Page
<S>         <C>                                                                                                  <C>
1.          SUMMARY OF DEFINED TERMS ............................................................................ 1

2.          PREMISES ............................................................................................ 3

3.          TERM ................................................................................................ 3

4.          CONSTRUCTION BY LANDLORD ............................................................................ 3

5.          FIXED RENT; SECURITY DEPOSIT ........................................................................ 4

6.          ADDITIONAL RENT ..................................................................................... 7

7.          UTILITIES .......................................................................................... 13

8.          MANAGEMENT FEE ..................................................................................... 13

9.          SIGNS; USE OF PREMISES AND COMMON AREAS ............................................................ 14

10.         ENVIRONMENTAL MATTERS .............................................................................. 16

11.         TENANT'S ALTERATIONS ............................................................................... 18

12.         CONSTRUCTION LIENS ................................................................................. 20

13.         ASSIGNMENT AND SUBLETTING .......................................................................... 21

14.         LANDLORD'S RIGHT OF ENTRY .......................................................................... 25

15.         REPAIRS AND MAINTENANCE ............................................................................ 26

16.         INSURANCE; SUBROGATION RIGHTS ...................................................................... 27

17.         INDEMNIFICATION .................................................................................... 28

18.         QUIET ENJOYMENT .................................................................................... 29

19.         FIRE DAMAGE AND OTHER CASUALTIES ................................................................... 29

                                      -i-
<PAGE>

20.         SUBORDINATION; RIGHTS OF MORTGAGEE ................................................................. 31

21.         CONDEMNATION ....................................................................................... 32

22.         ESTOPPEL CERTIFICATE ............................................................................... 33

23.         DEFAULT ............................................................................................ 33

24.         CURING TENANT'S DEFAULTS ........................................................................... 38

26.         LANDLORD'S REPRESENTATIONS AND WARRANTIES .......................................................... 38

27.         SURRENDER .......................................................................................... 38

28.         RULES AND REGULATIONS .............................................................................. 39

29.         GOVERNMENTAL REGULATIONS ........................................................................... 39

30.         NOTICES ............................................................................................ 40

31.         BROKERS ............................................................................................ 40

32.         CHANGE OF BUILDING/PROJECT NAME .................................................................... 41

33.         LANDLORD'S LIABILITY ............................................................................... 41

34.         AUTHORITY .......................................................................................... 41

35.         NO OFFER ........................................................................................... 41

36.         RENEWAL ............................................................................................ 41

37.         ROOF RIGHTS ........................................................................................ 42

38.         MISCELLANEOUS PROVISIONS ........................................................................... 43

39.         WAIVER OF TRIAL BY JURY ............................................................................ 48

40.         CONSENT TO JURISDICTION ............................................................................ 48
</TABLE>

                                      -ii-
<PAGE>

EXHIBITS

EXHIBIT "A"                 -        SITE PLAN
EXHIBIT "B"                 -        SITE PLAN -- PARKING AREA
EXHIBIT "C"                 -        TENANT'S LIST OF MATERIALS
EXHIBIT "D"                 -        FORM OF NON-DISTURBANCE AGREEMENT
EXHIBIT "E"                 -        RULES AND REGULATIONS

                                     -iii-
<PAGE>

                                      LEASE

     THIS LEASE ("Lease") entered into as of the 22nd day of May, 2000, between
BRANDYWINE OPERATING PARTNERSHIP, L.P., a Delaware limited partnership having
its principal office at 14 Campus Boulevard, Suite 100, Newtown Square,
Pennsylvania 19073 ("Landlord"), and THE IMMUNE RESPONSE CORPORATION, a Delaware
corporation with its principal place of business at 5935 Darwin Court, Carlsbad,
California ("Tenant").

                                   WITNESSETH

     In consideration of the mutual covenants herein set forth, and intending to
be legally bound, the parties hereto covenant and agree as follows:

     1. SUMMARY OF DEFINED TERMS.

     The parties agree that the following defined terms, as used in this Lease,
shall have the meanings and shall be construed as set forth below:

          (a) "BUILDING": The Building owned by Landlord in fee and located at
660 Allendale Road, King of Prussia, Pennsylvania, and identified as Unit 660 in
the condominium complex known as Brandywine King of Prussia.

          (b) "PROJECT": The Building, the land, the portions of the Parking
Area (as hereinafter defined) which are for the exclusive use of Tenant and all
other improvements located at 660 Allendale Road, King of Prussia, Pennsylvania.

          (c) "PREMISES": Unit No. 660, which the parties hereto hereby
stipulate and agree is the entire 50,635 square feet of the Building shown on
the Site Plan attached hereto as Exhibit "A" and made a part hereof.

          (d) "TERM": From June 1, 2000 to October 31, 2011.

          (e) "FIXED RENT": Tenant shall pay to Landlord fixed rent as set forth
in the Rental Schedule contained in Section 5 of the Lease.

          (f) "SECURITY DEPOSIT": $30,000.00;

          (g) "EFFECTIVE DATE": June 1, 2000;

          (h) "TENANT'S ALLOCATED SHARE -- COMMON AREAS": 47.77%

                                      -1-

<PAGE>

          (i) "RENTABLE AREA":          Premises 50,635
                                        Building 50,635

          (j) "PERMITTED USES": Tenant's use of the Premises shall be limited to
general bio-pharmaceutical research and development, product production and
distribution, including, general office and industrial uses and storage
incidental thereto, in accordance with all applicable laws and in keeping with
existing governmental zoning and permitted uses.

          (k) "BROKER": CB Richard Ellis;

          (l) "NOTICE ADDRESS/CONTACT"

<TABLE>
<S>                                                          <C>
               Tenant:                                       The Immune Response Corporation
                                                             5935 Darwin Court
                                                             Carlsbad, CA 92008
                                                             Attn:          Peter Kane
                                                                            Director - Administration

               With a copy to:                               Eric A. Kremer, Esquire
                                                             Pillsbury, Madison & Sutro LLP
                                                             Carmel Valley Center One
                                                             11975 El Camino Real
                                                             Suite 200
                                                             San Diego, CA 92130-2593

               Landlord:                                     BRANDYWINE OPERATING
                                                             PARTNERSHIP, L.P.
                                                             14 Campus Blvd., Suite 100
                                                             Newtown Square, Pennsylvania 19073
                                                             Attn:          Anthony A. Nichols, Jr.
                                                                            Vice President of Operations

               With a copy to:                               Brandywine Realty Trust
                                                             14 Campus Blvd.
                                                             Suite 100
                                                             Newtown Square, Pennsylvania 19073
                                                             Attn:          Brad A. Molotsky, Esquire
                                                                            General Counsel
</TABLE>

          (m) "TENANT'S STANDARD INDUSTRIAL CLASSIFICATION NUMBER": 2836.

                                       -2-
<PAGE>

          (n) "ADDITIONAL RENT": All sums of money or charges required to be
paid by Tenant under this Lease other than Fixed Rent, whether or not such sums
or charges are designated as "Additional Rent".

          (o) "RENT": All Annual Fixed Rent, monthly installments of Annual
Fixed Rent, Fixed Rent and Additional Rent payable by Tenant to Landlord under
this Lease.

          (p) "PARKING AREA": The part of the Project which shall at all times
include not less than 80 parking spaces, of which 30 spaces shall be allocated
for the exclusive use of Tenant and the remaining 50 spaces shall be allocated
for the non-exclusive use of Tenant, as indicated on the Site Plan attached
hereto as Exhibit B and as described in Paragraph 9(f) hereof.

     2. PREMISES. Landlord does hereby lease, demise and let unto Tenant and
Tenant does hereby hire and lease from Landlord the Premises for the Term, upon
the provisions, conditions and limitations set forth herein.

     3. TERM.

          (a) The Term of this Lease shall commence (the "Commencement Date") on
the Effective Date, which shall be June 1, 2000, and shall expire on October 31,
2011.

          (b) Landlord shall grant to Tenant access to tile Premises commencing
on the date of the execution of this Lease in order to enable Tenant to commence
its fit-out of the Premises. The Tenant's rental obligations shall commence on
June 1, 2000 (the "Rental Commencement Date").

          (c) In the event that the Landlord is not in a position to deliver
access to the premises to Tenant on the date of the execution of this Lease,
then the Commencement Date shall be amended to be the date which is thirty (30)
days from the date on which Landlord delivers access to the Premises to Tenant.

     4. CONSTRUCTION BY LANDLORD. Landlord hereby agrees to perform the
construction services set forth below at its sole cost and expense:

          (a) Landlord hereby confirms that the Building will be equipped with a
three inch water line, a six to eight inch sewer line and a 2,000 KVA -- 480/277
volt, 65 degrees C rise, pad-mount transformer for the Premises.

          (b) Landlord hereby agrees to reconfigure and repair the Parking Area
and loading area in accordance with the Site Plan attached hereto as Exhibit A
and made a part hereof; re-stripe and re-coat the parking lot; repair the stairs
and handrails at the entrance to the Premises; and to provide a loading dock
(including leveler) and truck access to the Premises in accordance with the
plans attached as Exhibit A hereto and made a part hereof;

                                       -3-
<PAGE>

          (c) The work to be performed by Landlord in accordance with
subsections (a) and (b) above shall be referred to collectively herein as the
"Landlord's Work."

          (d) Tenant acknowledges that Tenant shall be responsible for repairs
or replacement of the sidewalk located in the area from the stairs and handrails
described in Section 4(b) hereof to the entrance of the Premises.

     5. FIXED RENT; SECURITY DEPOSIT.

          (a) Commencing on the Rental Commencement Date, Tenant shall pay to
Landlord without notice or demand, and without set-off, the annual Fixed Rent
payable as follows:

                                      -4-
<PAGE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
                                                         RENTAL SCHEDULE
----------------------------------------------------------------------------------------------------------------
Months                       Period                         Rent PFS          Annual Rent           Monthly Rent
----------------------------------------------------------------------------------------------------------------
<S>                          <C>                           <C>               <C>                 <C>
Months 1 - 12                6/1/00 - 5/30/01                  $6.15          $311,405.25             $25,950.44
----------------------------------------------------------------------------------------------------------------
Months 13 - 24               6/1/01 - 5/30/02                  $6.33          $320,747.41             $26,728.95
----------------------------------------------------------------------------------------------------------------
Months 25 - 36               6/1/02 - 5/30/03                  $6.52          $330,369.83             $27,530.82
----------------------------------------------------------------------------------------------------------------
Months 37 - 48               6/1/03 - 5/30/04                  $6.72          $340,280.92             $28,356.74
----------------------------------------------------------------------------------------------------------------
Months 49 - 60               6/1/04 - 5/30/05                  $6.92          $350,489.35             $29,207.45
----------------------------------------------------------------------------------------------------------------
Months 61 - 72               6/1/0/5 - 5/30/06                 $7.13          $361,004.03             $30,083.67
----------------------------------------------------------------------------------------------------------------
Months 73 - 84               6/1/06 - 5/30/07                  $7.34          $371,834.15             $30,986.18
----------------------------------------------------------------------------------------------------------------
Months 85 - 96               6/1/07 - 5/30/08                  $7.56          $382,989.18             $31,915.76
----------------------------------------------------------------------------------------------------------------
Months 97 - 108              6/1/08 - 5/30/09                  $7.79          $394,478.85             $32,873.24
----------------------------------------------------------------------------------------------------------------
Months 109 - 120             6/1/09 - 5/30/10                  $8.02          $406,313.22             $33,859.43
----------------------------------------------------------------------------------------------------------------
Months 121 - 132             6/1/10 - 5/30/11                  $8.27          $418,502.62             $34,875.22
----------------------------------------------------------------------------------------------------------------
Months 133 - 137             6/1/11 - 10/31/11                 $8.51          $179,543.27             $35,921.47
----------------------------------------------------------------------------------------------------------------
<CAPTION>
                                                    FIRST RENEWAL PERIOD
----------------------------------------------------------------------------------------------------------------
Months                       Period                         Rent PFS          Annual Rent           Monthly Rent
----------------------------------------------------------------------------------------------------------------
<S>                          <C>                            <C>               <C>                   <C>
Months 1 - 12                11/1/11 - 10/31/12                $8.77          $443,989.43             $36,999.12
----------------------------------------------------------------------------------------------------------------
Months 13 - 24               11/1/12 - 10/31/13                $9.03          $457,309.11             $38,109.09
----------------------------------------------------------------------------------------------------------------
Months 25 - 36               11/1/13 - 10/31/14                $9.30          $471,028.38             $39,252.37
----------------------------------------------------------------------------------------------------------------
Months 37 - 48               11/1/14 - 10/31/15                $9.58          $485,159.23             $40,429.94
----------------------------------------------------------------------------------------------------------------
Months 49 - 60               11/1/15 - 10/31/16                $9.87          $499,714.01             $41,642.83
----------------------------------------------------------------------------------------------------------------
<CAPTION>
                                                    SECOND RENEWAL PERIOD
----------------------------------------------------------------------------------------------------------------
<S>                          <C>                            <C>               <C>                   <C>
Months                       Period                         Rent PFS          Annual Rent           Monthly Rent
----------------------------------------------------------------------------------------------------------------
Months 1 - 12                11/1/16 - 10/31/17                $10.17         $514,705.43             $42,892.12
----------------------------------------------------------------------------------------------------------------
Months 13 - 24               11/1/17 - 10/31/18                $10.47         $530,146.59             $44,178.88
----------------------------------------------------------------------------------------------------------------

                                      -5-
<PAGE>

----------------------------------------------------------------------------------------------------------------
Months 25 - 36               11/1/18 - 10/31/19                $10.78         $546,050.99             $45,504.25
----------------------------------------------------------------------------------------------------------------
Months 37 - 48               11/1/19 - 10/31/20                $11.11         $562,432.52             $46,869.38
----------------------------------------------------------------------------------------------------------------
Months 49 - 60               11/1/20 - 10/31/21                $11.44         $579,305.50             $48,275.46
----------------------------------------------------------------------------------------------------------------
</TABLE>

Rental Schedule based on 50,635 square feet

The Fixed Rent shall be payable, commencing on the Rental Commencement Date, in
monthly installments in advance on the first day of each calendar month during
the Term by wire transfer of immediately available funds to the account at First
Union National Bank, account no. 2030000359075; such transfer to be confirmed to
Brandywine Realty Services Corporation's accounting department (610-325-5622 -
fax) by written facsimile with ABA routing number 031000503. Notwithstanding the
immediately preceding sentence, the first month's installment and the security
deposit shall be paid upon the execution of this Lease by Tenant by two separate
checks. Otherwise, Fixed Rent shall not commence nor be due and owing until the
Rental Commencement Date.

          (b) In the event any Fixed Rent or Additional Rent, charge, fee or
other amount due from Tenant under the terms of this Lease are not paid to
Landlord within ten (10) days of the date due, Tenant shall also pay as
Additional Rent a service and handling charge equal to ten (10%) percent of the
total payment then due. This provision shall not prevent Landlord from
exercising any other remedy herein provided or otherwise available at law or in
equity in the event of any default by Tenant.

          (c) Tenant shall be required to pay a security deposit in the amount
set forth in Section 1(f) of this Lease (the "Collateral"), as security for the
prompt, full and faithful performance by Tenant of each and every provision of
this Lease and of all obligations of Tenant hereunder. No interest shall be
paid to Tenant on the Collateral. If Tenant fails to perform any of its
obligations hereunder after applicable cure periods have expired, if any,
Landlord may use, apply or retain the whole or any part of the Collateral for
the payment of (i) any rent or other sums of money which Tenant may not have
paid when due, (ii) any sum expended by Landlord on Tenant's behalf in
accordance with the provisions of this Lease, and/or (iii) any sum which
Landlord may expend or be required to expend by reason of Tenant's default,
including any damage or deficiency in or from the reletting of the Premises as
provided in this Lease. The use, application or retention of the Collateral, or
any portion thereof, by Landlord shall cure Tenant's default to the extent of
Landlord's use or application thereof, but shall not otherwise prevent Landlord
from exercising any other right or remedy provided by this Lease or by law (it
being intended that Landlord shall not first be required to proceed against the
Collateral) and shall not operate as a limitation on any recovery to which
Landlord may otherwise be entitled. If any portion of the Collateral is used,
applied or retained by Landlord for the purposes set forth above, Tenant
agrees, within ten (10) days after the written demand therefor is made by
Landlord, to

                                      -6-
<PAGE>

deposit cash with the Landlord in an amount sufficient to restore the Collateral
to its original amount.

          If Tenant shall fully and faithfully comply with all of the
provisions of this Lease, the Collateral, or any balance thereof, shall be
returned to Tenant without interest within thirty (30) days after the
expiration of the Term or upon any later date after which Tenant has vacated
the Premises. In the absence of evidence satisfactory to Landlord of any
permitted assignment of the right to receive the Collateral, or of the
remaining balance thereof, Landlord may return the same to the original Tenant,
regardless of one or more assignments of Tenant's interest in this Lease or the
Collateral. In such event, upon the return of the Collateral, or the remaining
balance thereof to the original Tenant, Landlord shall be completely relieved
of liability under this Paragraph or otherwise with respect to the Collateral.

          In the event of a sale of the Project and Building of which the
Premises form a part, Landlord shall have the right to transfer the Collateral
to the vendee or lessee and Landlord shall thereupon be released by Tenant from
all liability for the return of such Collateral; and Tenant agrees to look
solely to the new landlord for the return of said Collateral, and the provisions
hereof apply to every transfer or assignment made of the Collateral to a new
landlord. Tenant further covenants that it will not assign or encumber or
attempt to assign or encumber the Collateral and that neither Landlord nor its
successors or assigns shall be bound by any such assignment, encumbrance,
attempted assignment or attempted encumbrance.

          The Collateral shall not be mortgaged, assigned or encumbered in any
manner whatsoever by Tenant without the prior written consent of Landlord.

     6.   ADDITIONAL RENT.

          (a) Commencing on the Commencement Date, and in each calendar year
thereafter during the Term (as same may be extended), Tenant shall pay to
Landlord, as Additional Rent, within thirty (30) days after Landlord certifies
to Tenant the amount thereof, the following charges ("Recognized Expenses"),
without deduction or set off. Landlord and Tenant hereby acknowledge and agree
that with regard to all Recognized Expenses for the Building and/or Project,
Tenant shall be required to pay 100% of such Recognized Expenses set forth
below. With regard to those expenses that relate to shared charges for common
areas between the Premises and the premises owned by Landlord and located at
640 Allendale Road, King of Prussia, Pennsylvania, Tenant shall be responsible
for the Tenant's Allocated Share-Common Areas as indicated in Section 1(h)
hereof. Tenant shall also be responsible for its equitable share, determined by
Landlord in its reasonable judgment, of the shared landscaping and snow removal
charges for the entrances off of Allendale Road, King of Prussia, Pennsylvania.

               (1) INSURANCE PREMIUMS. All premiums paid or payable by Landlord
for insurance with respect to the Project, which premiums shall be reasonable in
context of both the Project and customary commercial insurance coverage in the
marketplace, as follows: (a)

                                      -7-
<PAGE>

fire and extended coverage insurance (including demolition and debris removal);
(b) insurance against Landlord's rental loss or abatement (but not including
business interruption coverage on behalf of Tenant), from damage or destruction
from fire or other casualty; (c) Landlord's comprehensive liability insurance
(including bodily injury and property damage) and boiler insurance; and (d) such
other insurance as Landlord or any reputable mortgage lending institution
holding a mortgage on the Premises may require.

If the coverage period of any of such insurance obtained by Landlord commences
before or extends beyond the term, the premium therefore shall be prorated to
the Term. If any such insurance is provided by blanket coverage, the part of the
premium allocated to the Project shall be equitably determined by Landlord but
shall not exceed the amount of premium due if insurance was provided by a policy
only insuring the Project. Should Tenant's occupancy or use of the Premises at
any time change and thereby cause an increase in such insurance premiums on the
Premises, Building and/or Project, Tenant shall pay to Landlord the reasonable
amount of such increase.

                    (2) OPERATING EXPENSES. The reasonable costs and expenses
related to the following activities with regard to the Project incurred and paid
by Landlord during the Term, including:

                         (a) All costs and expenses relating to taxes (including
waste generation fees imposed by Upper Merion Township and Montgomery County,
which charges were established in 1999), removing snow, ice and debris, and
maintaining all landscape areas (including the placing and replanting of
flowers, shrubbery and trees, maintaining and repairing all other exterior
improvements on the Project, all repairs and compliance costs necessitated by
laws enacted or which become effective after the commencement date hereof
(including, without limitation, any additional regulations or requirements
enacted after the date hereof regarding the Americans With Disabilities Act (as
such applies to the Project or common areas but not to any individual tenant's
space), if applicable) required of Landlord under applicable laws, rules and
regulations. Landlord's obligation to provide snow removal services shall be
limited to the parking areas and the sidewalk entrances.

                         (b) All costs and expenses incurred by Landlord for all
replacement or repairs to the Parking Area, including, but not limited to,
re-striping and re-coating the Parking Area, once Landlord has completed the
reconfiguration and repair of the Parking Area and the re-striping and
re-coating of the parking lot in accordance with Section 4(b) hereof.

                         (c) All costs and expenses incurred by Landlord for
ordinary compliance type environmental testing, sampling or monitoring required
by statute, regulation or order of governmental authority, necessary except any
costs or expenses incurred in conjunction with the spilling or depositing of any
hazardous substance for which any person or other tenant is legally liable.

                                      -8-
<PAGE>

                         (d) Capital expenditures to the extent considered as an
Operating Expense under this Article 6, shall be included as Operating Expenses
solely to the extent of the amortized costs of same over the useful life of the
improvement in accordance with generally accepted accounting principles.

                    (3) EXCLUSIONS. Notwithstanding the foregoing, the term
"Recognized Expenses" shall NOT include any of the following:

                         (a) Repairs or other work occasioned by fire, windstorm
or other insured casualty plus and "deductibles" or by the exercise of the right
of eminent domain;

                         (b) Leasing commissions, accountants', consultants',
auditors or attorneys' fees, costs and disbursements and other expenses incurred
in connection with negotiations or disputes with other tenants or prospective
tenants or other occupants, or associated with the enforcement of any other
leases or the defense of Landlord's title to or interest in the real property or
any part thereof;

                         (c) Costs incurred by Landlord in connection with
construction of the Building and related facilities, the correction of latent
defects in construction of the Building or the discharge of Landlord's Work;

                         (d) Costs (including permit, licenses and inspection
fees) incurred in renovating or otherwise improving or decorating, painting, or
redecorating the Building or space for other tenants or other occupants or
vacant space;

                         (e) Costs of any items or services sold or provided to
tenants (including Tenant) for which Landlord is reimbursed by such tenants;

                         (f) Depreciation and amortization;

                         (g) Costs incurred due to a breach by Landlord or any
other tenant of the terms and conditions of any lease;

                         (h) Overhead and profit increment paid to subsidiaries
or affiliates of Landlord for management or other services on or to the Building
or for supplies, utilities or other materials, to the extent that the costs of
such services, supplies, utilities or materials exceed the reasonable costs that
would have been paid had the services, supplies or materials been provided by
unaffiliated parties on a reasonable basis without taking into effect volume
discounts or rebates offered to Landlord as a portfolio purchaser;

                         (i) Interest on debt or amortization payments on any
mortgage or deeds of trust or any other borrowings and any ground rent;

                                      -9-
<PAGE>

                         (j) Ground rents or rentals payable by Landlord
pursuant to any over-lease;

                         (k) Any compensation paid to clerks, attendants or
other persons in commercial concessions operated by Landlord;

                         (l) All items and services for which Tenant reimburses
Landlord or which Landlord provides selectively to one or more tenants or
occupants of the building (other than Tenant) without reimbursement;

                         (m) Costs incurred in managing or operating any "pay
for" parking facilities within the Project;

                         (n) Any fines or fees for Landlord's failure to comply
with governmental, quasi-governmental, or regulatory agencies' rules and
regulations; or

                         (o) Legal, accounting and other expenses related to
Landlord's financing, re-financing, mortgaging or selling the Building or the
Project.

               (b) Tenant shall be required to pay all Taxes imposed on the
Project. Taxes shall be defined as all taxes, assessments and other governmental
charges ("Taxes"), including special assessments for public improvements or
traffic districts which are levied or assessed against the Project during the
Term (as may be extended) or, if levied or assessed prior to the Term, which
properly are allocable to the Term, and real estate tax appeal expenditures
incurred by Landlord to the extent of any reduction resulting thereby. In the
event that the real estate tax bills for the property of which the Project is a
part are broken down to tax separately the Building and the land surrounding the
Building that is designated as the Parking Area, then the Tenant's
responsibility shall be to pay all of the real estate taxes set forth in said
real estate tax bills. In the event that there is not a separate real estate tax
bill for the Building and the land surrounding the Building that is designated
as the Parking Area, as noted aforesaid, then the Tenant shall be required to
pay its pro-rata portion of the real estate tax bills for the property of which
the Project is a part in two (2) components as follows: (i) with regard to that
portion of the real estate tax bills relating to all of the buildings located on
the property of which the Project is a part, the Tenant shall pay its pro-rata
share of said real estate taxes based upon the square footage of the Premises to
the total square footage of all buildings located on the property of which the
Project is a part, and (ii) with regard to that portion of the real estate tax
bills representing a tax assessment for the land of the property of which the
Project is a part, including the Parking Area and the land under the
above-described buildings, the Tenant shall pay its equitable share of real
estate taxes for said land on a pro-rata basis.

                    Nothing herein contained shall be construed to include as
Taxes: (A) any inheritance, estate, succession, transfer, gift, franchise,
corporation, net income or profit tax or capital levy that is or may be imposed
upon Landlord or (B) any Taxes resulting from a transfer

                                      -10-
<PAGE>

of the Building or the Project; provided, however, that if at any time during
the Term the method of taxation prevailing at the commencement of the Term shall
be altered so that in lieu of or as a substitute for the whole or any part of
the taxes now levied, assessed or imposed on real estate as such there shall be
levied, assessed or imposed (i) a tax on the rents received from such real
estate, or (ii) a license fee measured by the rents receivable by Landlord from
the Premises or any portion thereof, or (iii) a tax or license fee imposed upon
Premises or any portion thereof, then the same shall be included in the
computation of Taxes hereunder.

               (c) Beginning on the Rental Commencement Date, with the payment
for the month of June, 2000 due on the date of the execution of this Lease,
Tenant shall pay, in monthly installments in advance, on account of the
Recognized Expenses and Taxes or Tenant's Allocated Share - Common Areas, as the
case may be, the estimated amount of such Recognized Expenses and Taxes for such
year as determined by Landlord in its reasonable discretion and as set forth in
a notice, such notice to include the basis for such calculation, to be provided
to Tenant prior to such date. Until the estimate is modified from time to time
by Landlord via written notice to Tenant at least thirty (30) days prior to any
adjustment, the monthly installments to be paid by Tenant on account of Tenant's
Allocated Share of Recognized Expenses and Taxes shall be based upon an annual
charge of Fifty-Seven Thousand, Two Hundred, Seventeen Dollars and Eighty Cents
($57,217.80), which equals monthly payments in the amount of Four Thousand,
Seven Hundred, Sixty-Eight Dollars and Fifteen Cents ($4,768.15) per month.
Prior to the end of that year and thereafter for each successive calendar year
(each, a "Lease Year"), or part thereof, Landlord shall send to Tenant a
statement of projected increases in Recognized Expenses and Taxes and Landlord
shall indicate what Tenant's projected share of Recognized Expenses and Taxes
shall be. Said amount shall be paid in equal monthly installments in advance by
Tenant as Additional Rent commencing January 1 of the applicable Lease Year.

                    Tenant shall have the right, at its sole cost and expense,
to audit or have its appointed accountant audit Landlord's records relating to
Recognized Expenses and Taxes provided that any such audit may not occur more
frequently than once each calendar year nor apply to any year prior to the then
current calendar year. In the event Tenant's audit discloses any discrepancy in
the amount of the Recognized Expenses or Taxes, Landlord and Tenant shall use
their best efforts to resolve the dispute and make an appropriate adjustment,
failing which they shall submit any such dispute to arbitration pursuant to the
rules and under the jurisdiction of the American Arbitration Association in
Delaware County, Pennsylvania. The decision rendered in such Arbitration shall
be final, binding and non-appealable. The expenses of Arbitration, other than
individual legal and accounting expenses which shall be the respective parties'
responsibility, shall be divided equally between the parties. In the event, by
agreement or as a result of an arbitration decision, it is determined that the
actual recognized expenses exceeded those claimed by the Landlord by more than
five percent (5%), the actual, reasonable hourly costs to Tenant of Tenant's
audit (including legal and accounting costs) shall be reimbursed by Landlord.
Tenant agrees not to utilize a contingent fee auditor.

                                      -11-
<PAGE>

                    If during the course of any Lease Year, Landlord shall have
reason to believe that the Recognized Expenses and Taxes shall be different than
that upon which the aforesaid projections were originally based, then Landlord,
following sixty (60) days written notice to Tenant, shall be entitled to adjust
the amount by reallocating the remaining payments for such year, for the months
of the Lease Year which remain for the revised projections, and to advise Tenant
of an adjustment in future monthly amounts to the end result that the Recognized
Expenses and Taxes shall be collected on a reasonably current basis each Lease
Year.

                    In calculating the Recognized Expenses as hereinbefore
described, if for thirty (30) or more days during the preceding Lease Year less
than ninety-five (95%) percent of the rentable area of the Building shall have
been occupied by tenants, then the Recognized Expenses attributable to the
Property shall be deemed for such Lease Year to be amounts equal to the
Recognized Expenses which would normally be expected to be incurred had such
occupancy of the Building been at least ninety-five (95%) percent throughout
such year, as reasonably determined by Landlord (i.e., taking into account that
certain expenses depend on occupancy and certain expenses do not (e.g.,
landscaping)). Furthermore, if Landlord shall not furnish any item or items of
Recognized Expenses to any portions of the Building because such portions are
not occupied or because such item is not required by the tenant of such portion
of the Building, for the purposes of computing Recognized Expenses, an equitable
adjustment shall be made so that the item of Operating Expense in question shall
be shared only by tenants actually receiving the benefits thereof.

                    Within four (4) months following the end of each Lease Year
or as soon thereafter as administratively available, Landlord shall send to
Tenant an itemized statement of actual expenses incurred for Recognized Expenses
and Taxes for the prior Lease Year showing the Allocated Share due from Tenant.
Landlord shall use its reasonable efforts to provide Tenant with the aforesaid
statements on or before April 30 of each Lease Year; provided, however, if
Landlord is unable to provide such statements by April 30, Landlord shall not
have been deemed to waive its right to collect any such amounts as Additional
Rent. If Landlord is unable to provide final statements on or before April 30 of
each Lease Year, Landlord shall provide Tenant with its unaudited internal
estimates of such costs by April 30, with the caveat that the final statements
may deviate from the estimate provided. In the event the amount prepaid by
Tenant exceeds the amount that was actually due then Landlord shall issue a
credit to Tenant in an amount equal to the over charge, which credit Tenant may
apply to future payments on account of Recognized Expenses and Taxes until
Tenant has been fully credited with the over charge. If the credit due to Tenant
is more than the aggregate total of future rental payments, Landlord shall pay
to Tenant the difference between the credit in such aggregate total. In the
event Landlord has undercharged Tenant then Landlord shall send Tenant an
invoice with the additional amount due, which amount shall be paid in full by
Tenant within thirty (30) days of receipt.

                    Each of the Recognized Expense and Amount of Taxes, whether
requiring lump sum payment or constituting projected monthly amounts added to
the Fixed Rent, shall for all purposes be treated and considered as Additional
Rent and the failure of Tenant to pay the

                                      -12-
<PAGE>

same as and when due in advance and without demand shall have the same effect as
failure to pay any installment of the Fixed Rent.

                    Landlord will provide Tenant with a copy of the real estate
tax bills for the Premises promptly after the Landlord's receipt of the same.
The failure of the Landlord to furnish copies of said real estate tax bills to
Tenant shall not be deemed to be a default under this Lease unless the Landlord
fails to furnish copies of said real estate tax bills within ten (10) days after
receipt of written notice from Tenant requesting said real estate tax bills.

                    If this Lease terminates other than at the end of a calendar
year, Landlord's annual estimate of Recognized Expenses and Taxes shall be
accepted by the parties as the actual Recognized Expenses and Taxes for the year
the Lease ends unless and until Landlord provides Tenant with actual statements
in accordance with this subsection 6(c).

     7. UTILITIES. From and after the Commencement Date, Tenant shall make
arrangements with each utility company and public body to provide, in Tenant's
name, gas, electricity, water, sewer, telephone, heat, and air conditioning
necessary for Tenant's use of the Premises, and Tenant shall cause all such
utilities to be separately metered, to the extent possible. Tenant shall pay
directly to the companies furnishing utility service the cost of all service
connection fees and the cost of all utilities consumed throughout the Term. If
the water service is not separately metered, Landlord shall pay water bills for
the Building, and Tenant shall pay to Landlord prior to the time when each bill
becomes due an amount determined by Landlord based on the actual cost thereof
attributable to Tenant's usage. In the event that Tenant fails to pay in a
timely manner any sum required under this Section, Landlord shall have the
right, but not the obligation, to pay any such sum. Any sum so paid by Landlord
shall be deemed to be owing by Tenant to Landlord and due and payable as
Additional Rent within five (5) business days after written demand therefor.

          Tenant's obligations for the payment of the costs incurred for
utilities that serve the Premises prior to the termination of this Lease shall
survive termination hereof.

          Landlord shall provide, 7 days per week, 24 hour per day ("Working
Hours"), excluding legal holidays, the Premises with heat and air conditioning
for typical warehouse use in the respective seasons for comfortable occupancy of
the Premises and provide the Premises with electricity for lighting and usual
office equipment in accordance with Section 4(a) hereof.

     8. MANAGEMENT FEE. Tenant shall be required to pay to Landlord an annual
management fee ("Management Fee") in the amount of four percent (4%) of the
annual fixed rent to be paid by Tenant to Landlord during the Term (as may be
extended) of this Lease. The Management Fee shall be paid on a monthly basis
commencing on the Commencement Date.

                                      -13-
<PAGE>

     9. SIGNS; USE OF PREMISES AND COMMON AREAS.

          (a) Tenant, at its sole cost and expense, shall be permitted to place
on the existing monument sign for the 680 Allendale Road Property the words
"660-680 Allendale Road" and shall also be permitted to install a lawn-mounted
identification sign for the Premises, which sign shall be located where
indicated on the site plan attached hereto as Exhibit A and made a part hereof,
and which sign shall be no more than 9 square feet in dimension, no higher than
4 feet off the ground and shall be of a style and design acceptable to Landlord,
which acceptance shall not be unreasonably withheld or delayed. The subject
signage will be compatible with the building design and shall conform with all
applicable local government codes, shall be fully visible and free of any
obstructions such as landscaping and such visibility shall be maintained
throughout the Term (as may be extended). Tenant shall be required to obtain, at
its sole cost and expense, all permits and approvals necessary for said signage.
Landlord will cooperate with Tenant in an effort to obtain said approvals.

          (b) Tenant may use and occupy the Premises only for the express and
limited purposes stated in Article 1(j) above; and the Premises shall not be
used or occupied, in whole or in part, for any other purpose without the
prior written consent of Landlord, which consent shall not be unreasonably
withheld or delayed, taking into consideration such factors as environmental
impact, the use of other leased premises on the property of which the
Premises is a part by other tenants, the effect on insurance rates of said
proposed use and other reasonable factors deemed by Landlord to be relevant
in its decision; provided that Tenant's right to so use and occupy the
Premises shall remain expressly subject to the provisions of "Governmental
Regulations", Article 29 herein. No machinery or equipment shall be permitted
that shall cause excessive vibration, noise or disturbance beyond the
Premises. Provided that the Tenant is not in breach of any of its obligations
under this Lease and continues to pay all of its rental and additional
payment obligations under this Lease, the Tenant shall have the right to
vacate the Premises no more than one (1) time during each eighteen (18) month
period during the Term or any renewal term of this Lease for a period of up
to six (6) months. In the event that the Tenant vacates the Premises for a
period longer than six (6) months or vacates or otherwise abandons the
Premises more than one (1) time during each eighteen (18) month period during
the Term or any renewal term of this Lease, Tenant shall be in default under
this Lease. The term "vacate" , as used herein, shall be defined as the
Tenant failing to open for business or removing substantially all of its
client files or its furniture and equipment and personal property from the
Premises.

          (c) Tenant shall not overload any floor or part thereof in the
Premises or the Building which exceeds the floor loading capacity of the subject
building, bringing in, placing, storing, installing or removing any large or
heavy articles, and Landlord may prohibit, or may direct and control the
location and size of, safes and all other heavy articles, and may require, at
Tenant's sole cost and expense, supplementary supports of such material and
dimensions as Landlord may deem necessary to properly distribute the weight.

                                      -14-
<PAGE>

          (d) Tenant shall not install in or for the Premises, without
Landlord's prior written approval with Landlord's said approval not to be
unreasonably withheld, conditioned or delayed, any equipment which requires more
electric current than Landlord is required to provide under this Lease, and
Tenant shall ascertain from Landlord the maximum amount of load or demand for or
use of electrical current which can safely be permitted in and for the Premises,
taking into account the capacity of electric wiring in the Building and the
Premises and the needs of Building common areas (interior and exterior) and the
requirements of other tenants of the Building, Tenant and shall not in any event
connect a greater load than such safe capacity.

          (e) Tenant shall not commit or suffer any waste upon the Premises,
Building or Project or any nuisance, or any other act or thing which may disturb
the quiet enjoyment of any other tenant in the Building or Project.

          (f) Tenant shall have the right to use the exterior paved driveways
and walkways of the Building for vehicular and pedestrian access to the
Building. Attached to the Lease as Exhibit B is the Site Plan indicating the
Parking Area. Landlord has designated in red certain potential parking spaces
comprising the Parking Area designated on Exhibit B. At all times, Landlord
shall designate for use by Tenant a minimum of 80 spaces for the parking of
automobiles of Tenant and its employees and business visitors, incident to
Tenant's permitted use of the Premises, of which 30 spaces shall be allocated
for the exclusive use of Tenant and the remaining 50 spaces shall be allocated
for the non-exclusive use of Tenant. Out of said 80 spaces, the 67 spaces that
have been designated in orange will be permanent parking spaces provided for
Tenant's use and shall not be relocated at any time by Landlord, except as
otherwise provided for herein, without the prior written consent of Tenant
(the "Permanent Spaces"). With regard to the remaining 13 spaces, said 13 spaces
shall be selected by Landlord within the circle drawn in yellow (the "Yellow
Area") and are marked in blue on Exhibit B (the "13 Spaces"). Upon not less
than 10 business days prior written notice to Tenant, Landlord may relocate
the 13 Spaces within the Yellow Area. In connection with the Landlord's
construction activities affecting the Project, Landlord shall have the right,
upon not less than 10 business days prior written notice to Tenant, to
relocate the Permanent Spaces and/or the 13 Spaces within the area drawn in
red on Exhibit B (the "Temporary Relocation Area"). In connection with the
relocation of the Permanent Spaces and the 13 spaces within the Temporary
Relocation Area, Landlord agrees that it: (i) shall use all reasonable
efforts to minimize the impact of its construction activities on the Tenant,
(ii) shall use all reasonable efforts to complete its construction activities
on an expedited basis, and (iii) shall use all reasonable efforts to keep the
Tenant informed, on a routine basis, in connection with the progress of its
construction activities. Landlord shall have the right to establish
reasonable regulations, applicable to all tenants, governing the use of or
access to any interior or exterior common areas; and such regulations, when
communicated by written notification from Landlord to Tenant, shall be deemed
incorporated by reference hereinafter and part of this Lease. Such regulation
shall not be interpreted, supplemented or modified in a manner which
materially and adversely affects Tenant's use or occupancy of the premises
under this Lease. The parking provided to Tenant under this subsection (f)
shall be at no cost to Tenant during the Term (and any extensions thereof)
and shall be exclusive to Tenant except in the event of emergency.

                                      -15-
<PAGE>

          10. ENVIRONMENTAL MATTERS.

               (a) HAZARDOUS SUBSTANCES.

                    (i) Tenant shall not, except as provided in subparagraph
(ii) below, bring or otherwise cause to be brought or permit any of its agents,
employees, contractors or invitees to bring in, on or about any part of the
Premises, Building or Project, any hazardous substance or hazardous waste in
violation of law, as such terms are or may be defined in (x) the Comprehensive
Environmental Response, Compensation and Liability Act, 42 U.S.C. 9601 ET SEQ.,
as the same may from time to time be amended, and the regulations promulgated
pursuant thereto ("CERCLA"); the United States Department of Transportation
Hazardous Materials Table (49 CFR 172.102); by the Environmental Protection
Agency as hazardous substances (40 CFR Part 302); the Clean Air Act; and the
Clean Water Act, and all amendments, modifications or supplements thereto;
and/or (y) any other rule, regulation, ordinance, statute or requirements of any
governmental or administrative agency regarding the environment (collectively,
(x) and (y) shall be referred to as an "Applicable Environmental Law").

                    (ii) Tenant may bring to and use at the Premises, hazardous
substances, supplies or other items, incidental to its normal business
operations under the SIC Code referenced in paragraph 1(m) above in de minimis
quantities in accordance with Applicable Environmental Law. Tenant shall store
and handle such substances in strict accordance with applicable Environmental
Law. Notwithstanding the foregoing language contained in this subsection (ii),
Tenant shall have the right to store and handle those materials listed in
Exhibit C attached hereto (as the same may be updated as provided below) and
made a part hereof (collectively, the "Materials"), and the storage and handling
of said Materials in strict accordance with Applicable Environmental Law shall
not be deemed to be a breach of this Lease. Tenant shall be required to obtain
all permits from the appropriate environmental authorities permitting Tenant to
utilize said Materials and Tenant hereby covenants to renew, update or obtain
any and all other permits necessary in order to comply with Applicable
Environmental Law. Tenant shall have the right to update the list of Materials
on an annual basis and to add materials thereto, provided that the addition of
any materials not set forth in Exhibit C shall be subject to at least ten (10)
days' prior written notice to, and the reasonable approval of, the Landlord;
provided, however, that Tenant shall be permitted to add additional materials,
and the Landlord shall be deemed to have given its reasonable approval thereto
provided that the Food & Drug Administration or other governmental or regulatory
authority has required Tenant to utilize said additional material or materials,
in which event the addition of said material or materials shall be permitted,
unless said materials, if not utilized in accordance with all Applicable
Environmental Law, would have a potential material, adverse environmental impact
on the Building, the Project, the Premises or any operations thereon. Any added
materials shall be purchased, stored, handled, utilized and disposed of in
strict accordance with all Applicable Environmental Law. With regard to any
Materials or additional materials utilized by Tenant in connection with this
Article 10, Tenant shall be required, before receiving, storing, handling or
using any said materials, to

                                      -16-
<PAGE>

obtain all federal, state and local licenses, permits and approvals required by
Applicable Environmental Law.

               (b) SIC NUMBERS.

                    (i) Tenant represents and warrants that Tenant's SIC
(Standard Industrial Classification) number as designated in the Standard
Classification Manual prepared by the Office of Management and Budget, and as
set forth in Article 1(m) hereof, is correct. Tenant represents that the
specific activities intended to be carried on in the Premises are in accordance
with Article 1(j).

                    (ii) Except for the Materials permitted in accordance with
Section 10(a)(ii) hereof, Tenant shall not engage in operations at the Premises
which involve the generation, manufacture, refining, transportation, treatment,
storage, handling or disposal of "hazardous substances" or "hazardous waste" as
such terms are defined under any Applicable Environmental Law. Tenant further
covenants that it will not cause or permit to exist any "discharge" (as such
term is defined under Applicable Environmental Laws on or about the Premises.

                    (iii) Tenant shall, at its expense, comply with all
requirements of Applicable Environmental Laws pertaining thereto.

                    (iv) In addition, upon written request of Landlord, Tenant
shall cooperate with Landlord in obtaining Applicable Environmental Laws
approval of any transfer of the Building of which the Premises form a part.
Specifically in that regard, Tenant agrees that it shall (1) execute and deliver
all affidavits, reports, responses to questions, applications or other filings
reasonably required by Landlord and related to Tenant's activities at the
Premises, (2) allow inspections and testing of the Premises subject to prior
notice and compliance with Tenant's security requirements, and (3) as respects
the Premises occupied by Tenant, perform any requirement reasonably requested by
Landlord necessary for the receipt of Applicable Environmental Laws approval,
provided the foregoing shall not require interruption or modification of
Tenant's permitted use of the premises for the uses permitted under the lease
and shall be at no out-of-pocket cost or expense to Tenant except for clean-up
and remediation costs arising from Tenant's activities at the Premises.

               (c) ADDITIONAL TERMS.

                    (i) In the event of Tenant's failure to comply in full with
this Article, Landlord may, after written notice to Tenant and Tenant's
failure to cure within thirty (30) days of its receipt of such notice, at
Landlord's option, perform any and all of Tenant's obligations as aforesaid
and all reasonable costs and expenses incurred by Landlord in the exercise of
this right shall be deemed to be Additional Rent payable on demand and with
interest at the Default Rate until payment at the rate provided in this Lease.

                                      -17-

<PAGE>

                    (ii) The parties acknowledge and agree that Tenant shall not
be held responsible for any environmental issue or violation of applicable
Environmental Law at the Premises unless such issue was caused by an action or
omission of Tenant or its agents, employees, consultants or invitees.

                    (iii) This Article 10 shall survive the expiration or sooner
termination of this Lease.

               (d) REPRESENTATIONS OF LANDLORD

                    (i) Landlord and Tenant hereby acknowledge that Landlord has
furnished to the Tenant a copy of the Phase I Environmental Inspection Report
prepared by McLaren/Hart, Inc. and dated February 13, 1998 (the "Phase I
Report"). Landlord hereby represents and warrants to Tenant that except for the
disclosures made in the Phase I Report, the Landlord has no knowledge of any
violation of any Applicable Environmental Law with regard to the Premises or the
Project and is not aware of the presence of any asbestos or asbestos containing
materials therein. Tenant hereby acknowledges that the Landlord has not made any
independent investigation with regard to the representations of the Landlord
contained in this Article 10(d).

          11. TENANT'S ALTERATIONS.

               (a) Except as otherwise provided in this subsection (a), Tenant
will not cut or drill into or secure any fixture, apparatus or equipment or
make alterations, improvements or physical additions (collectively,
"Alterations") of any kind to any part of the Premises without first
obtaining the written consent of Landlord, such consent not to be
unreasonably withheld except that with respect to any proposed Alterations to
the exterior of the Premises, Landlord shall have the right to withhold its
consent in its sole and exclusive discretion. Notwithstanding the language
contained in this Article 11(a), Tenant shall be permitted to (i) install an
emergency generator at the exterior of the Premises in a location adjacent to
the Premises, excluding the area (A) between 640 and 660 Allendale Road, King
of Prussia, Pennsylvania, and (B) in the front of 660 Allendale Road, King of
Prussia, Pennsylvania, which location shall be acceptable to Landlord in its
reasonable judgment, (ii) install security lighting around the Premises in
locations acceptable to Landlord in its reasonable judgment, and (iii)
install two (2) cooling towers (to be located adjacent to each other), three
(3) condensors and up to eight (8) airhandling units on the Building roof,
subject to such screening and construction-related requirements as may be
imposed by Landlord in its reasonable judgment, and which items shall be
placed in locations suggested by Tenant and acceptable to Landlord in its
reasonable judgment, provided that all said items shall conform with all
applicable laws, rules and regulations and that Tenant shall be required to
obtain, at its sole cost and expense, all licenses, permits and approvals
necessary for said items. Landlord's consent shall not be required with
regard to those non-exterior alterations that, in the aggregate, cost less
than $50,000.00 for each calendar year during the Term or any renewal term of
this Lease, provided said alterations are non-structural in nature, do not
affect the

                                      -18-
<PAGE>

structural integrity of the Building, do not in any material respect affect the
cosmetic style of the Building, do not adversely affect any utility systems or
other building systems in or for the Building and do not materially adversely
affect the access for, or the operations of, any tenant of the 680 Allendale
Road Property. In addition, Landlord's consent shall not be required for the
installation of any office equipment or fixtures including internal partitions
which do not require disturbance of any structural elements or systems (other
than attachment thereto) within the Building. Tenant shall be required to
furnish to Landlord a full set of proposed plans and specifications for the
Alterations. If Landlord approves Tenant's Alterations for which such approval
is required and agrees to permit Tenant's contractors to do the work, Tenant,
prior to the commencement of labor or supply of any materials, must furnish to
Landlord (i) a duplicate or original policy or certificates of insurance
evidencing (a) general public liability insurance for personal injury and
property damage in the minimum amount of $1,000,000.00 combined single limit,
(b) statutory workman's compensation insurance, and (c) employer's liability
insurance from each contractor to be employed (all such policies shall be
non-cancelable without thirty (30) days prior written notice to Landlord; (ii)
construction documents prepared and sealed by a registered Pennsylvania
architect if such alteration is in excess of $15,000; (iii) all applicable
building permits required by law; and (iv) an executed, effective Waiver of
Mechanics Liens from such contractors and all sub-contractors. Any consent by
Landlord permitting Tenant to do any or cause any work to be done in or about
the Premises shall be and hereby is conditioned upon Tenant's work being
performed by workmen and mechanics working in harmony and not interfering with
labor employed by Landlord, Landlord's mechanics or their contractors or by any
other tenant or their contractors. If at any time any of the workmen or
mechanics performing any of Tenant's work shall be unable to work in harmony or
shall interfere with any labor employed by Landlord, other tenants or their
respective mechanics and contractors, then the permission granted by Landlord to
Tenant permitting Tenant to do or cause any work to be done in or about the
Premises, may be withdrawn by Landlord upon forty-eight (48) hours written
notice to Tenant. Tenant shall be deemed to own all Alterations that are not
deemed to be fixtures subject to the provisions of this Section 11; provided,
however, that Landlord and Tenant agree that the Trade Fixtures of Tenant (as
hereinafter defined) shall not be deemed to be fixtures for purposes of this
Section 11. The term "Trade Fixtures", for purposes of this Section 11, shall be
comprised of the furniture, fixtures and equipment utilized by Tenant in
connection with its business operations and shall include items such as, but not
limited to, freezers, ovens, autoclaves and other equipment that would not be
deemed to be fixtures except for the fact that said items are hooked or bolted
or otherwise affixed onto existing fixtures of the Building. At the expiration
or sooner termination of this Lease, Tenant shall be required to remove, at its
sole cost an expense, all Trade Fixtures in a good and workmanlike manner so as
not to damage the Premises or Building. Tenant shall be responsible for the
repair of any damage caused by the removal of the Trade Fixtures and shall be
required, at its sole cost and expense, to restore any areas affected by this
Section 11(a) to a "vanilla shell" condition.

               (b) Not earlier than nine (9) months and not later than six (6)
months prior to the expiration of the Term or the Renewal Term of this Lease,
Tenant shall furnish to Landlord a written list of those items that Tenant
desires to remove from the Building upon said

                                      -19-
<PAGE>

expiration. The Landlord shall, within thirty (30) days of the receipt of said
notification from Tenant, determine, in its sole and exclusive discretion, and
provide to Tenant a written list and/or category of items (i) that Tenant shall
be required to remove from the Building in order to return the Building to a
"vanilla shell" condition for generic industrial space, and (ii) that Landlord
agrees may be left in the Building by Tenant. Tenant shall be permitted to
remove those items, as determined by Landlord in its reasonable judgment, that
do not affect its obligation to return the Building to a "vanilla shell"
condition for generic industrial space. In the event of any disagreement between
the Landlord and the Tenant with regard to any item set forth in this Section
11(b), said item shall be required to be removed by Tenant unless said item is
an item that Landlord requires remain in the Building as part of the "vanilla
shell." Subject to the provisions of this Section 11(b), all items left on the
Premises by Tenant shall be the Landlord's property and shall remain on the
Premises without compensation to Tenant. Any installations, removals and
restoration by Tenant shall be in accordance with this Section 11(b) and shall
be accomplished at Tenant's sole cost and expense in a good and workmanlike
manner so as not to damage the Premises or Building. Tenant shall be responsible
for the repair of any damage caused by such installation, removal and
restoration and shall be required, at its sole cost and expense, to restore any
areas affected by this Section 11(b) to a "vanilla shell" condition.

               (c) If Tenant fails to remove any items required to be removed
pursuant to Section 11(a) or 11(b) hereof no later than the date of the
expiration or earlier termination of this Lease, Landlord may do so and the
reasonable costs and expenses thereof shall be deemed Additional Rent hereunder
and shall be reimbursed by Tenant to Landlord within fifteen (15) business days
of Tenant's receipt of an invoice therefor from Landlord.

     12. CONSTRUCTION LIENS.

          (a) Tenant will not voluntarily suffer or permit any contractor's,
subcontractor's or supplier's lien (a "Construction Lien") to be filed
against the Premises or any part thereof by reason of work, labor services or
materials supplied or claimed to have been supplied to Tenant; and if any
Construction Lien shall at any time be filed against the Premises or any part
thereof, Tenant, within thirty (30) days after notice of the filing thereof,
shall cause it to be discharged of record by payment, deposit, bond, order of
a court of competent jurisdiction or otherwise. If Tenant shall fail to cause
such Construction Lien to be discharged within the period aforesaid, then in
addition to any other right or remedy, Landlord may, but shall not be
obligated to, discharge it either by paying the amount claimed to be due or
by procuring the discharge of such lien by deposit or by bonding proceedings.
Any amount so paid by Landlord, plus all of Landlord's reasonable costs and
expenses associated therewith (including, without limitation, reasonable
legal fees), shall constitute Additional Rent payable by Tenant under this
Lease and shall be paid by Tenant to Landlord on demand with interest from
the date of advance by Landlord at the Default Rate.

          (b) Nothing in this Lease, or in any consent to the making of
alterations or improvements shall be deemed or construed in any way as
constituting authorization by Landlord

                                      -20-
<PAGE>

for the making of any alterations or additions by Tenant within the meaning
of 49 P.S. Sections 1101-1902, as amended or under the Contractor and
Subcontractor Payment Act or any amendment thereof, or constituting a request
by Landlord, express or implied, to any contractor, subcontractor or supplier
for the performance of any labor or the furnishing of any materials for the
use or benefit of Landlord.

     13. ASSIGNMENT AND SUBLETTING.

          (a) For any assignment and subletting, subject to the remaining
subsections of this Article 13, except as expressly permitted pursuant to this
section, Tenant shall not, without the prior written consent of Landlord, which
consent is not to be unreasonably withheld or delayed, assign or hypothecate
this Lease or any interest herein or sublet the Premises or any part thereof.
Any of the foregoing acts without such consent shall be void and shall, at the
option of Landlord, terminate this Lease. Subject to subparagraph 13(i) below,
this Lease shall not, nor shall any interest herein, be assignable as to the
interest of Tenant by operation of law or by merger, consolidation or asset
sale, without the written consent of Landlord. Tenant may assign the subject
lease or may sublet the premises or any part thereof, without Landlord's consent
after notice, to any subsidiary, parent, affiliate or controlled corporation
which is owed at least 50% by Tenant, or to any corporation to which Tenant may
be converted or with which it may merge with Tenant as survivor, or who acquires
substantially all of Tenant's stock or assets provided that as to asset
acquisitions, (A) the financial condition of the proposed assignee or sublessee
is at least equal to the financial condition of the Tenant as of the date of
this Lease, as determined by Landlord in its reasonable judgement, and (B) the
prospective assignee and the Tenant enter into an Assignment and Assumption
Agreement with Landlord in form and substance satisfactory to Landlord and its
legal counsel, providing, INTER ALIA, that the Tenant shall remain bound to
Landlord under the Lease. For any other subletting, Landlord agrees that it will
not unreasonably withhold, condition or delay its consent.

          (b) If at any time or from time to time during the term of this Lease
Tenant desires to assign this Lease or sublet all or any part of the Premises,
Tenant shall give notice to Landlord of such desire, including the name, address
and contact party for the proposed assignee or subtenant, a description of such
party's business history, the effective date of the proposed assignment or
sublease (including the proposed occupancy date by the proposed assignee or
sublessee), and in the instance of a proposed sublease, the square footage to be
subleased, a floor plan professionally drawn to scale, depicting the proposed
sublease area, and a statement of the duration of the proposed sublease (which
shall in any and all events expire by its terms prior to the scheduled
expiration of this Lease, and immediately upon the sooner termination hereof).
Landlord may, at its option, and in its sole and absolute discretion,
exercisable by notice given to Tenant ("Landlord's Election Notice") within
forty-five (45) days next following Landlord's receipt of Tenant's notice
(which notice from Tenant shall, as a condition of its effectiveness, include
all of the above-enumerated information), elect to recapture the Premises or
such portion as is proposed by Tenant to be sublet (and in each case, the
designated and non-designated parking spaces included in this demise, or a
pro-rata portion thereof in the instance of the

                                      -21-
<PAGE>

recapture of less than all of the Premises), and terminate this Lease in the
instance of a proposed assignment, or recapture that portion of the Premises
proposed to be sublet (and a pro-rata portion of designated and non-designated
parking spaces, as aforesaid) and terminate the Lease with respect thereto, in
the instance of a proposed sublease; provided, however, that in the event that
the Landlord elects to recapture the Premises or such portion as is proposed by
Tenant to be sublet, Tenant shall be permitted to withdraw its request for an
assignment or sublease by furnishing written notice thereof to Landlord within
five (5) days of the date of the Landlord's Election Notice. The Landlord, if it
so elects, as an alternative to its option to recapture the Premises or such
portion as is proposed by Tenant to be sublet, shall have the right to allow
said assignment or sublease and, in said instance, Landlord shall be entitled to
retain one hundred percent (100%) of any additional payments (over and above the
Rent and Additional Rent payable under this Lease) received by Tenant from said
assignee or sublessee in connection with the assignment or sublease of all or
part of the Premises after Tenant's recovery of those reasonable costs and
expenses incurred directly in connection therewith. Notwithstanding the language
contained in this subsection (b), the Tenant shall have the one time right to
sublease up to 5,000 square feet of space in the Premises, subject to the
Landlord's approval in accordance with Section 13(a) hereof, without the
Landlord having the right to recapture said space provided that said sublease is
to one single sublessee for a one time sublease right only. In the event that
the sublease is for more than 5,000 square feet, or in the event that the
sublease is not the first sublease request under this Section 13, then Landlord
shall have all of the recapture rights set forth in this subsection (b).
Notwithstanding the language contained in this Section 13(b), the Tenant shall
have the right to sublease one hundred percent (100%) of the Premises from time
to time without triggering the right of the Landlord to recapture the Premises
under this Section 13(b) provided that (i) all of the other terms and conditions
set forth in this Section 13 and this Lease are made subject to said sublease,
and (ii) Landlord receives one hundred percent (100%) of the excess rent
received by Tenant from said sublessee (with no deduction of any costs or
expenses incurred by Tenant in connection therewith), and (iii) Landlord shall
have the full right to recapture the Premises in the event that said proposed
sublease would occur within the last three (3) years of the original term of
this Lease or the last eighteen (18) months of any renewal option under this
Lease.

          (c) If Landlord elects to recapture the Premises or a portion thereof
as aforesaid, then from and after the effective date thereof as approved by
Landlord, after Tenant shall have fully performed such obligations as are
enumerated herein to be performed by Tenant in connection with such recapture,
and except as to obligations and liabilities accrued and unperformed (and any
other obligations expressly stated in this Lease to survive the expiration or
sooner termination of this Lease), Tenant shall be released of and from all
lease obligations thereafter otherwise accruing with respect to the Premises (or
such lesser portion as shall have been recaptured by Landlord). The Premises, or
such portion thereof as Landlord shall have elected to recapture, shall be
delivered by Tenant to Landlord free and clear of all furniture, furnishings,
personal property and removable fixtures, with Tenant repairing and restoring
any and all damage to the Premises resulting from the installation, handling or
removal thereof, and otherwise in the same condition as Tenant is, by the terms
of this Lease, required to redeliver the

                                      -22-
<PAGE>

Premises to Landlord upon the expiration or sooner termination of this Lease.
The cost of erecting any required demising walls, entrances and entrance
corridors, and any other or further improvements required in connection
therewith, including without limitation, modifications to HVAC, electrical,
plumbing, fire, life safety and security systems (if any), painting,
wallpapering and other finish items as may be acceptable to or specified by
Landlord, all of which improvements shall be made in accordance with applicable
code requirements and Landlord's then-standard base building specifications,
shall be performed by Landlord's contractors, at Tenant's sole cost and expense.
Upon the completion of any recapture and termination as provided herein,
Tenant's remaining Fixed Rent, Operating Expense and remaining monetary
obligations of Tenant shall be adjusted pro-rated based upon the reduced
rentable square footage then comprising the Premises.

          (d) If Landlord provides written notification to Tenant electing not
to recapture the Premises (or so much thereof as Tenant had proposed to
sublease), then Tenant may proceed to market the designated space and may
complete such transaction and execute an assignment of this Lease or a sublease
agreement (in each case in form acceptable to Landlord) within a period of five
(5) months next following Landlord's notice to Tenant that it declines to
recapture such space, provided that Tenant shall have first obtained in any such
case the prior written consent of Landlord to such transaction, which consent
shall not be unreasonably withheld. If, however, Tenant shall not have assigned
this Lease or sublet the Premises with Landlord's prior written consent as
aforesaid within five (5) months next following Landlord's notice to Tenant that
Landlord declines to recapture the Premises (or such portion thereof as Tenant
initially sought to sublease), then in such event, Tenant shall again be
required to request Landlord's consent to the proposed transaction, whereupon
Landlord's right to recapture the Premises (or such portion as Tenant shall
desire to sublease) shall be renewed upon the same terms and as otherwise
provided in subsection (b) above.

               For purposes of this Section 13(d), and without limiting the
basis upon which Landlord may withhold its consent to any proposed assignment or
sublease, the parties agree that it shall not be unreasonable for Landlord to
withhold its consent to such assignment or sublease if: (i) the proposed
assignee or sublessee shall have a net worth less than the net worth of Tenant
at the time Tenant executes this Lease, or which is otherwise not acceptable to
Landlord in Landlord's reasonable discretion; (ii) the proposed assignee or
sublessee shall have no reliable credit history or an unfavorable credit
history, or other reasonable evidence exists that the proposed assignee or
sublessee will experience difficulty in satisfying its financial or other
obligations under this Lease; (iii) the proposed assignee of sublessee, in
Landlord's reasonable opinion, is not reputable and of good character; (iv) the
portion of the Premises requested to be subleased renders the balance of the
Premises unleasable as a separate area; (v) Tenant is proposing a sublease at a
rental or subrental rate which is substantially less than the then fair market
rental rate for the portion of the Premises being subleased or assigned, or
Tenant is proposing to assign or sublease to an existing tenant of the Building
or another property owned by Landlord or by its partners, or to another prospect
with whom Landlord or its partners, or their affiliates are then negotiating;
(vi) the proposed assignee or sublessee will cause Landlord's

                                      -23-
<PAGE>

existing parking facilities to be reasonably inadequate, or in violation of code
requirements, or require Landlord to increase the parking area or the number of
parking spaces to meet code requirements, or the nature of such party's business
shall reasonably require more than four (4) parking spaces per per 1,000
rentable square feet of floor space, or (vii) the nature of such party's
proposed business operation would or might reasonably permit or require the use
of the Premises in a manner inconsistent with the "Permitted Use " specified
herein, would or might reasonably otherwise be in conflict with express
provisions of this Lease, would or might reasonably violate the terms of any
other lease for the Building, or would, in Landlord's reasonable judgement,
otherwise be incompatible with other tenancies in the Building.

          (e) Any sums or other economic consideration received by Tenant as a
result of any subletting, assignment or license (except rental or other payments
received which are attributable to the amortization of the cost of leasehold
improvements made to the sublet or assigned portion of the premises by Tenant
for subtenant or assignee, and other reasonable expenses incident to the
subletting or assignment, including standard leasing commissions) whether
denominated rentals under the sublease or otherwise, which exceed, in the
aggregate, the total sums which Tenant is obligated to pay Landlord under this
Lease (prorated to reflect obligations allocable to that portion of the premises
subject to such sublease or assignment) shall be paid fifty (50%) percent to
Landlord in their entirety without affecting or reducing any other obligation of
Tenant hereunder.

          (f) Regardless of Landlord's consent, no subletting or assignment
shall release Tenant of Tenant's obligation or alter the primary liability of
Tenant to pay the Rent and to perform all other obligations to be performed by
Tenant hereunder. Consent to one assignment or subletting shall not be deemed
consent to any subsequent assignment or subletting.

          (g) In the event that (i) the Premises or any part thereof are sublet
and Tenant is in default under this Lease, or (ii) this Lease is assigned by
Tenant, then, Landlord may collect Rent from the assignee or subtenant and apply
the net amount collected to the rent herein reserved; but no such collection
shall be deemed a waiver of the provisions of this Article 13 with respect to
assignment and subletting, or the acceptance of such assignee or subtenant as
Tenant hereunder, or a release of Tenant from further performance of the
covenants herein contained.

          (h) In connection with each proposed assignment or subletting of the
Premises by Tenant, Tenant shall pay to Landlord, Landlord's reasonable
attorneys' fees in an amount not to exceed $750.00.

          (i) Notwithstanding anything to the contrary contained herein,
regardless of whether Landlord shall consent thereto (or whether such
transaction shall otherwise be permitted hereunder upon notice to, but without
the consent of Landlord), no assignment of this Lease and no subletting of the
Premises or any portion thereof shall release Tenant of Tenant's obligations
hereunder, or alter the primary liability of Tenant to pay the Rent and to
perform any

                                      -24-
<PAGE>

and all other obligations to be performed by the holder of the tenant interest
hereunder, and it shall be an express condition of any assignment or sublease
that a fully-executed, original counterpart of the assignment or sublease
agreement, in form specified by or otherwise acceptable to Landlord, shall be
furnished to Landlord prior to the effective date thereof. Any assignment
document shall, among its terms, contain an express agreement by the assignee to
assume and be bound by all of the obligations to be performed and discharged by
the holder of the tenant interest hereunder, and shall include an affirmation by
the assignor of its continuing primary liability hereunder notwithstanding such
assignment. Any sublease document shall, among its terms, be expressly subject
and subordinate in all respects to this Lease, and the shall contain an
affirmation by the sublessor of its continuing primary liability hereunder
notwithstanding such sublease. The acceptance of rental by Landlord from any
other person shall not be deemed to be a waiver by Landlord of any provision
hereof. Consent to one assignment or subletting shall not be deemed consent to
any subsequent assignment or subletting. In the event of default by 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.

          (j) Anything in this Article 13 to the contrary notwithstanding
(including, without limitation, any provisions herein regarding permitted
assignments or subleases) no assignment or sublease shall be permitted under
this Lease if, at the time Tenant seeks approval therefor, or at any time
thereafter until such assignment or sublease becomes effective and shall be
implemented, Tenant is in default beyond applicable cure periods of any of its
obligations under this Lease.

     14. LANDLORD'S RIGHT OF ENTRY. Subject to the provisions of Section 38(T)
hereof, Landlord and persons authorized by Landlord may enter the Premises at
all reasonable times upon not less than forty-eight (48) hours notice (except in
the case of an emergency in which case no prior notice is necessary) for the
purpose of inspections, repairs, alterations to adjoining space, appraisals, or
other reasonable purposes; including enforcement of Landlord's rights under this
Lease. Landlord shall not be liable for inconvenience to or disturbance of
Tenant by reason of any such entry other than resulting from the negligence or
intentional misconduct of Landlord or its agents; provided, however, that in the
case of repairs or work, such shall be done, so far as practicable, so as to not
unreasonably interfere with Tenant's use of the Premises. Provided, however,
that such efforts shall not require Landlord to use overtime labor unless Tenant
shall pay for the increased costs to be incurred by Landlord for such overtime
labor. Landlord also shall have the right to enter the Premises at all
reasonable times after giving not less than three (3) days prior notice to
Tenant, to exhibit the Premises to any prospective purchaser, tenant and/or
mortgagee.

                                      -25-
<PAGE>

     15. REPAIRS AND MAINTENANCE.

          (a) Except as specifically otherwise provided in subparagraphs (b) and
(c) of this Article 15, Tenant, at its sole cost and expense and throughout the
Term (as may be extended) of this Lease, shall keep and maintain the Premises in
good order and condition, free of accumulation of dirt and rubbish, and shall
promptly make all repairs other than repairs to the footings and foundations and
the structural steel columns and girders forming a part of the Premises
necessary to keep and maintain such good order and condition. Tenant shall have
the option of replacing lights, ballasts, tubes, ceiling tiles, outlets and
similar equipment itself or it shall have the ability to advise Landlord of
Tenant's desire to have Landlord make such repairs. If requested by Tenant,
Landlord shall make such repairs to the Premises within a reasonable time of
notice to Landlord and shall charge Tenant for such services at Landlord's
standard rate (such rate to be competitive with the market rate for such
services). Tenant shall not use or permit the use of any portion of the Premises
for outdoor storage. When used in this Article 15, the term "repairs" shall
include replacements and renewals when necessary. All repairs made by Tenant
shall utilize materials and equipment which are at least equal in quality and
usefulness to those originally used in constructing the Building and the
Premises. Tenant shall maintain all HVAC systems serving the Building and the
Premises.

          (b) Landlord, throughout the Term of this Lease and at Landlord's sole
cost and expenses, shall make all necessary repairs to the footings and
foundations and the structural steel columns and girders forming a part of the
Premises. Landlord shall also be responsible, at its sole cost and expense, for
correcting any violations of, or as may be necessary to comply with, all
municipal, county, state and federal governmental laws, codes and requirements
and repairs required to correct latent defects in the Building, subject to the
other provisions of this Lease. This requirement does not apply if Tenant's
equipment or use of the Premises is the cause for such repair, in which event it
shall be Tenant's responsibility at its sole cost and expense to correct said
violations.

          (c) Landlord, throughout the Term of this Lease, shall make all
necessary repairs to the Building outside of the Premises and the common areas,
including the walls, exterior portions of the Premises and the Building, utility
lines, equipment and other utility facilities in the Building, which serve more
than one tenant of the Building, and to any driveways, sidewalks, curbs,
loading, parking and landscaped areas, and other exterior improvements for the
Building, but excluding the roof of the Premises; provided, however, that
Landlord shall have no responsibility to make any repairs unless and until
Landlord receives written notice of the need for such repair. Tenant shall pay
its Allocated Share -- Common Areas of the cost of all repairs to be performed
by Landlord pursuant to this Paragraph 15(c) as Additional Rent as provided, in
Article 6 hereof.

          (d) Landlord shall keep and maintain all common areas appurtenant to
the Building and any sidewalks, parking areas, curbs and access ways adjoining
the Property in a clean and orderly condition, free of accumulation of dirt,
rubbish, snow and ice, and shall keep

                                      -26-
<PAGE>

and maintain all landscaped areas in a neat and orderly condition. Tenant shall
pay its Allocated Share -- Common Areas of the cost of all work to be performed
by Landlord pursuant to this Paragraph (d) as Additional Rent as provided in
Article 6 hereof.

          (e) Notwithstanding anything herein to the contrary, repairs to the
Premises, Building or Project and its appurtenant common areas made necessary by
a negligent or wilful act or omission of Tenant or any employee, agent,
contractor, or invitee of Tenant which are not covered by insurance required to
be maintained under this Lease shall be made at the sole cost and expense of
Tenant.

     16. INSURANCE; SUBROGATION RIGHTS.

          (a) Tenant shall obtain and keep in force at all times during the term
hereof, at its own expense, comprehensive general liability insurance including
contractual liability and personal injury liability and all similar coverage,
with combined single limits of $3,000,000.00 on account of bodily injury to or
death of one or more persons as the result of any one accident or disaster and
on account of damage to property, or in such other amounts as Landlord may from
time to time require. The policy limits set forth herein shall be subject to
periodic review, and Landlord reserves the right to require that Tenant increase
the liability coverage limits if, in the reasonable opinion of Landlord, the
coverage becomes inadequate and is less than commonly maintained by tenants of
similar buildings in the area making similar uses.

          (b) Tenant shall, at its sole cost and expense, maintain in full force
and effect on all Tenant's trade fixtures, equipment and personal property on
the Premises, a policy of all risk property insurance covering the full
replacement value of such property.

          (c) All insurance required hereunder shall not be subject to
cancellation without at least thirty (30) days prior notice to all insureds, and
shall name Landlord, Brandywine Realty Trust, Landlord's Agent and Tenant as
insureds, as their interests may appear, and, if requested by Landlord, shall
also name as an additional insured any mortgagee or holder of any mortgage which
may be or become a lien upon any part of the Premises. Prior to the commencement
of the Term, Tenant shall provide Landlord with certificates and copies of the
policy or policies of insurance above referred to, with evidence that the
coverages required have been obtained and that premiums have been paid in full
for the policy periods. Tenant shall also furnish to Landlord throughout the
term hereof replacement certificates or copies of renewal polices, together with
evidence of like paid premiums at least thirty (30) days prior to the expiration
dates of the then current policy or policies. All the insurance required under
this Lease shall be issued by insurance companies authorized to do business in
the Commonwealth of Pennsylvania with a financial rating of at least an A-X as
rated in the most recent edition of Best's Insurance Reports and in business for
the past five years. The limit of any such insurance shall not limit the
liability of Tenant hereunder. If Tenant fails to procure and maintain such
insurance, Landlord may, but shall not be required to, procure and maintain the
same, at Tenant's expense to be reimbursed by Tenant as Additional Rent within
ten (10) days of written demand.

                                      -27-
<PAGE>

Any deductible under such insurance policy or self-insured retention under such
insurance policy in excess of Twenty Five Thousand Dollars ($25,000.00) for
products liability insurance and Five Thousand Dollars ($5,000.00) for all other
insurance coverages must be approved by Landlord in writing prior to issuance of
such policy. Tenant shall not self-insure without Landlord's prior written
consent, which consent may be withheld by Landlord in its sole, exclusive
discretion. The policy limits set forth herein shall be subject to periodic
review, and Landlord reserves the right to require that Tenant increase the
liability coverage limits if, in the reasonable opinion of Landlord, the
coverage becomes inadequate and is less than commonly maintained by tenants of
similar buildings in the area making similar uses.

          (d) Landlord shall obtain and maintain the following insurance during
the Term of this Lease: (i) replacement cost insurance including all risk perils
on the Building and on the Project, (ii) builder's risk insurance for the
Landlord Work to be constructed by Landlord in the Project, and (iii)
comprehensive liability insurance (including bodily injury and property damage)
covering Landlord's operations at the Project in amounts reasonably required by
the Landlord's lender or Landlord.

          (e) Each party hereto, and anyone claiming through or under them by
way of subrogation, waives and releases any cause of action it might have
against the other party, including Tenant and Brandywine Realty Trust and their
respective employees, officers, members, partners, trustees and agents, on
account of any loss or damage that is insured against under any insurance policy
required to be obtained hereunder (to the extent that such loss or damage is
recoverable under such insurance policy) that covers the Project, Building or
Premises, Landlord's or Tenant's fixtures, personal property, leasehold
improvements or business and which names Landlord and Brandywine Realty Trust or
Tenant, as the case may be, as a party insured. Each party hereto agrees that it
will cause its insurance carrier to endorse all applicable policies waiving the
carrier's right of recovery under subrogation or otherwise against the other
party. During any period while such waiver of right of recovery is in effect,
each party shall look solely to the proceeds of such policies for compensation
for loss, to the extent such proceeds are paid under such policies.

     17. INDEMNIFICATION. Except for any acts of Landlord's willful misconduct
or negligent acts, Tenant shall defend, indemnify and hold harmless Landlord,
Brandywine Realty Services Corp. and Brandywine Realty Trust and their
respective employees and agents from and against any and all third-party claims,
actions, damages, liability and expense (including all attorney's fees, expenses
and liabilities incurred in defense of any such claim or any action or
proceeding brought thereon) arising from (i) Tenant's use of the Premises in
violation of the terms of this Lease, (ii) the improper conduct of Tenant's
business in violation of this Lease, (iii) any activity, work or things done,
permitted or suffered by Tenant in or about the Premises or elsewhere contrary
to the requirements of the Lease, (iv) any breach or default in the performance
of any obligation of Tenant's part to be performed under the terms of this
Lease, and (v) any negligence or willful act of Tenant or any of Tenant's
agents, contractors or employees and/or negligence or other tortious acts of
third-parties not covered by insurance policies required to be

                                      -28-
<PAGE>

maintained under this Lease, and in case Landlord, Brandywine Realty Services
Corp. or Brandywine Realty Trust shall be made a party to any litigation
commenced by or against Tenant, its agents, subtenants, licensees,
concessionaires, contractors, customers or employees, then Tenant shall defend,
indemnify and hold harmless Landlord, Brandywine Realty Services Corp. and
Brandywine Realty Trust and shall pay all costs, expenses and reasonable
attorney's fees incurred or paid by Landlord, Brandywine Realty Services Corp.
and Brandywine Realty Trust in connection with such litigation, after notice to
Tenant and Tenant's refusal to defend such litigation, and upon notice from
Landlord shall defend the same at Tenant's expense by counsel satisfactory to
Landlord. Tenant shall further indemnify and hold harmless Landlord, Brandywine
Realty Services Corp. and Brandywine Realty Trust from and against any and all
third-party claims, actions, damages, liability and expense (including, without
limitation, reasonable attorney's fees and disbursements) which may be imposed
upon or incurred by or asserted against Landlord by reason of (a) loss of life,
personal injury and/or damage to property occurring in or about, or arising out
of, the Premises, adjacent sidewalks and loading platforms or areas and common
areas appurtenant to the Building occasioned by reason of any act or omission of
Tenant, its agents, subtenants, licensees, concessionaires, contractors,
customers, employees and/or third parties and (b) any failure on the part of
Tenant to keep, observe and perform any of the terms, covenants, agreements,
conditions, limitations or Rules and Regulations contained in this Lease on
Tenant's part to be kept, observed and performed. The indemnification set forth
in this Section 17 shall not apply in a legal action commenced by Tenant against
Landlord for breach by Landlord of its obligations under this Lease; provided,
however, that said indemnification shall be applicable in the event a
counterclaim is filed by Landlord with respect to said legal action that
pertains to a subject matter that is covered by the indemnification set forth in
this Section 17.

     18. QUIET ENJOYMENT. Provided Tenant has performed all of the terms and
conditions of this Lease, including the payment of Fixed Rent and Additional
Rent, to be performed by Tenant, Tenant shall peaceably and quietly hold and
enjoy the Premises for the Term, without hindrance from Landlord, or anyone
claiming by through or under Landlord under and subject to the terms and
conditions of this lease and of any mortgages now or hereafter affecting all of
or any portion of the Premises.

     19. FIRE DAMAGE AND OTHER CASUALTIES.

          (a) Except as provided below, in case of damage to the Premises by
fire or other insured casualty, Landlord shall repair the damage. Such repair
work shall be commenced promptly following notice of the damage and completed
with due diligence, taking into account the time required for Landlord to effect
a settlement with and procure insurance proceeds from the insurer, except for
delays due to governmental regulation, scarcity of or inability to obtain labor
or materials, intervening acts of God or other causes beyond Landlord's
reasonable control.

          (b) Notwithstanding the foregoing, if (i) the damage is of a nature or
extent that, in Landlord's reasonable judgment (to be communicated to the other
within sixty (60) days

                                      -29-
<PAGE>

from the date of the casualty), the repair and restoration work would require
more than one hundred eighty (180) consecutive days to complete after the
casualty and, assuming normal work crews not engaged in overtime, or (ii) if
more than thirty (30%) percent of the total area of the Building is extensively
damaged, Landlord and Tenant each shall have the right to terminate this Lease
and all the unaccrued obligations of the parties hereto, by sending written
notice of such termination to the other within ten (10) days of receipt of the
notice described above. Such notice is to specify a termination date no less
than fifteen (15) days after its transmission; provided, however, that in
addition to the foregoing, in the event Tenant shall have also vacated the
Premises because the nature or extent of the damage rendered the Premises
untenantable, Tenant may by notice in writing to Landlord within five (5) days
of receipt of Landlord's written notice elect to make the termination of the
Lease retroactive to the date of such vacation of the Premises by Tenant.
Notwithstanding the foregoing, in the event Tenant is responsible for the
aforesaid casualty, Tenant shall NOT have the right to terminate this Lease if
Landlord is willing to rebuild and restore the Premises.

          (c) If the insurance proceeds received by Landlord as dictated by the
terms and conditions of any financing then existing on the Building, (excluding
any rent insurance proceeds) would not be sufficient to pay for repairing the
damage or are required to be applied on account of any mortgage which encumbers
any part of the Premises or Building, or if the nature of loss is not covered by
Landlord's fire insurance coverage, Landlord may elect either to (i) repair the
damage as above provided notwithstanding such fact or (ii) terminate this Lease
by giving Tenant notice of Landlord's election within thirty (30) days after
Landlord's knowledge of the damage and of the unavailability or insufficiency of
insurance proceeds. If the election is to terminate, Landlord shall give Tenant
at least thirty (30) days prior notice specifying the termination date.

          (d) In the event Landlord has not completed restoration of the
Premises within one hundred eighty (180) days from the date of casualty (subject
to delay due to weather conditions, shortages of labor or materials or other
reasons beyond Landlord's control which delay in any event will not exceed an
additional thirty (30) business days), Tenant may terminate this Lease by
written notice to Landlord within thirty (30) business days following the
expiration of such 180 day period (as extended for reasons beyond Landlord's
control as provided above) unless, within thirty (30) business days following
receipt of such notice, Landlord has substantially completed such restoration
and delivered the Premises to Tenant for occupancy.

          (e) In the event of damage or destruction to the Premises or any part
thereof, Tenant's obligation to pay Fixed Rent and Additional Rent shall be
equitably adjusted or abated, provided the deduction or abatement of Rent shall
not exceed rent insurance proceeds received by Landlord attributable to the
Premises for the period during which it was damaged. Notwithstanding the
foregoing, there shall be no abatement in Rent or Additional Rent if Tenant
caused or is responsible for the casualty such that insurance proceeds are
unavailable therefor.

                                      -30-
<PAGE>

     20. SUBORDINATION; RIGHTS OF MORTGAGEE.

          (a) This Lease shall be subject and subordinate to the lien of any
mortgages now or hereafter placed upon the Premises, Building and/or Project and
land of which they are a part without the necessity of any further instrument or
act on the part of Tenant to effectuate such subordination. Tenant further
agrees to execute and deliver upon demand such further instrument or instruments
evidencing such subordination of this Lease to the lien of any such mortgage and
such commercially reasonable further instrument or instruments of attornment as
shall be desired by any mortgagee or proposed mortgagee or by any other person
provided Tenant receives a standard form of Nondisturbance Agreement (defined
below) from such mortgagee. Notwithstanding the foregoing, any mortgagee may at
any time subordinate its mortgage to this Lease, without Tenant's consent, by
notice in writing to Tenant, and thereupon this Lease shall be deemed prior to
such mortgage without regard to their respective dates of execution and delivery
and in that event such mortgagee shall have the same rights with respect to this
Lease as though it had been executed prior to the execution and delivery of the
mortgage.

          (b) In the event Landlord shall be or is alleged to be in default of
any of its obligations owing to Tenant under this Lease, Tenant agrees to give
to the holder of any mortgage (collectively the "Mortgagee") now or hereafter
placed upon the Premises, Building and/or Project, notice by registered mail of
any such default which Tenant shall have served upon Landlord, provided that
prior thereto Tenant has been notified in writing (by way of Notice of
Assignment of Rents and/or Leases or otherwise in writing to Tenant) of the name
and addresses of any such Mortgagee. Tenant shall not be entitled to exercise
any right or remedy as there may be because of any default by Landlord without
having given such notice to the Mortgagee; and Tenant further agrees that if
Landlord shall fail to cure such default the Mortgagee shall have any additional
time periods (measured from the later of the date on which the default should
have been cured by Landlord or the Mortgagee's receipt of such notice from
Tenant), within which to cure such default, provided that if such default be
such that the same could not be cured within such period and Mortgagee is
diligently pursuing the remedies necessary to effectuate the cure (including but
not limited to foreclosure proceedings if necessary to effectuate the cure);
then Tenant may not exercise any right or remedy as there may be arising because
of Landlord's default, including but not limited to, termination of this Lease
as may be expressly provided for herein or available to Tenant as a matter of
law, if the Mortgagee either has cured the default within such time periods, or
as the case may be, has initiated the cure of same within such period and is
diligently pursuing the cure of same as aforesaid.

          (c) Attached to this Lease as Exhibit D is a form of Subordination,
Attornment and Non-Disturbance Agreement ("Non-Disturbance Agreement") that is
hereby deemed to be acceptable in form and substance to each of Landlord and
Tenant. Landlord and Tenant hereby each agree that upon request of the existing
or a future mortgagee of Landlord, each of Landlord and Tenant shall enter into
the Non-Disturbance Agreement or a form of non-disturbance agreement
substantially similar to that set forth in Exhibit D. In the event that a future
mortgagee shall be unwilling to enter into the Non-Disturbance Agreement as
aforesaid,

                                      -31-
<PAGE>

Landlord and Tenant hereby each agrees to utilize their best efforts in good
faith to agree to the form of a new non-disturbance agreement with said future
mortgage. In the event that Landlord, Tenant and said future mortgagee are
unable to agree upon the terms of a new non-disturbance agreement, this Lease
shall remain in full force and effect and the obligations of Tenant shall not in
any manner be affected except that, anything to the contrary contained in this
Lease notwithstanding, this Lease shall not be subject and subordinate to such
future mortgage. Tenant shall be obligated to enter into a new non-disturbance
agreement provided that its terms are materially similar in substance to the
Non-Disturbance Agreement.

     21.  CONDEMNATION.

          (a) If more than twenty (20%) percent of the floor area of the
Premises is taken or condemned for a public or quasi-public use (a sale in lieu
of condemnation to be deemed a taking or condemnation for purposes of this
Lease), this Lease shall, at either party's option, terminate as of the date
title to the condemned real estate vests in the condemnor, and the Fixed Rent
and Additional Rent herein reserved shall be apportioned and paid in full by
Tenant to Landlord to that date and all rent prepaid for period beyond that date
shall forthwith be repaid by Landlord to Tenant.

          (b) If less than twenty (20%) percent of the floor area of the
Premises is taken or if neither Landlord nor Tenant have elected to terminate
this Lease pursuant to the preceding sentence, Landlord shall do such work as
may be reasonably necessary to restore the portion of the Premises not taken to
tenantable condition for Tenant's uses, but shall not be required to expend more
than the net award Landlord reasonably expects to be available for restoration
of the Premises. If Landlord determines that the damages available for
restoration of the Building and/or Project will not be sufficient to pay the
cost of restoration, or if the condemnation damage award is required to be
applied on account of any mortgage which encumbers any part of the Premises,
Building and/or Project, Landlord may terminate this Lease by giving Tenant
ninety (90) days prior written notice specifying the termination date.

          (c) If this Lease is not terminated after any such taking or
condemnation, the Fixed Rent and the Additional Rent shall be equitably reduced
in proportion to the area of the Premises which has been taken for the balance
of the Term.

          (d) If a part or all of the Premises shall be taken or condemned, all
compensation awarded upon such condemnation or taking shall go to Landlord and
Tenant shall have no claim thereto other than (i) Tenant's right to bring a
claim for the cost of the alterations made by Tenant at Tenant's sole cost and
expense, provided that said claim does not in any manner or affect adversely
affect any condemnation claim by Landlord, and (ii) Tenant's damages associated
with moving, storage and relocation; and Tenant hereby expressly waives,
relinquishes and releases to Landlord any claim for damages or other
compensation to which Tenant might otherwise be entitled because of any such
taking or limitation of the leasehold

                                      -32-
<PAGE>

estate hereby created, and irrevocably assigns and transfers to Landlord any
right to compensation of all or a part of the Premises or the leasehold estate.

     22. ESTOPPEL CERTIFICATE. Each party agrees at any time and from time to
time, within ten (10) days after the other party's written request, to execute,
acknowledge and deliver to the other party a written instrument in recordable
form certifying that this Lease is unmodified and in full force and effect (or
if there have been modifications, that it is in full force and effect as
modified and stating the modifications), and the dates to which Rent, Additional
Rent, and other charges have been paid in advance, if any, and stating whether
or not to the best knowledge of the party signing such certificate, the
requesting party is in default in the performance of any covenant, agreement or
condition contained in this Lease and, if so, specifying each such default of
which the signer may have knowledge. It is intended that any such certification
and statement delivered pursuant to this Article may be relied upon by any
prospective purchaser of the Project or any mortgagee thereof or any assignee of
Landlord's interest in this Lease or of any mortgage upon the fee of the
Premises or any part thereof

     23. DEFAULT.

          If:

               (i) Tenant shall fail to pay any installment of Fixed Rent or any
amount of Additional Rent when due and has failed to remit said repayment within
five (5) days of date of written notice thereof from Landlord, provided,
however, that in the event that any notice is required to be given by Landlord
more than two (2) times in any twelve (12) month period of this Lease or more
than ten (10) times during the Term or any renewal term of the Lease, Tenant
shall be deemed to be in default under this Lease without the requirement of any
notice from Landlord.

               (ii) Tenant "vacates" the Premises (other than in the case of a
permitted subletting or assignment) or permits the same to be unoccupied as
defined in Section 9(b) hereof.

               (iii) Tenant fails to observe or perform any of Tenant's other
agreements or obligations herein contained within thirty (30) days after written
notice specifying the default, or the expiration of such additional time period
as is reasonably necessary to cure such default, provided Tenant immediately
commences and thereafter proceeds with all due diligence and in good faith to
cure such default,

               (iv) Tenant makes any assignment for the benefit of creditors,

               (v) Tenant commits an act of federal or state bankruptcy or files
a petition or commences any proceeding under any bankruptcy or insolvency law,

                                      -33-
<PAGE>

               (vi) a petition is filed or any proceeding is commenced against
Tenant under any federal or state bankruptcy or insolvency law and such petition
or proceeding is not dismissed within thirty (30) days,

               (vii) Tenant is adjudicated a bankrupt,

               (viii) Tenant by any act indicates its consent to, approval of or
acquiescence in, or a court approves, a petition filed or proceeding commenced
against Tenant under any federal or state bankruptcy or insolvency law,

               (ix) a receiver or other official is appointed for Tenant or for
a substantial part of Tenant's assets or for Tenant's interests in this Lease,

               (x) any attachment or execution against a substantial part of
Tenant's assets or of Tenant's interests in this Lease remains unstayed or
undismissed for a period of more than ten (10) days,

               (xi) a substantial part of Tenant's assets or of Tenant's
interest in this Lease is taken by legal process in any action against Tenant,
or

               (xii) Tenant shall have committed an Event of Default under the
terms of that certain Lease, dated even date herewith, by and between Landlord
and Tenant with regard to that certain land and premises known as 680 Allendale
Road, King of Prussia, Pennsylvania.

then, in any such event, an Event of Default shall be deemed to exist and Tenant
shall be in default hereunder.

     If an Event of Default shall occur, the following provisions shall apply
and Landlord shall have, in addition to all other rights and remedies available
at law or in equity, the rights and remedies set forth therein, which rights and
remedies may be exercised upon or at any time following the occurrence of an
Event of Default unless, prior to such exercise, Landlord shall agree in writing
with Tenant that the Event(s) of Default has been cured by Tenant in all
respects.

          (a) ACCELERATION OF RENT. By notice to Tenant, Landlord shall have the
right to accelerate all Fixed Rent and all expense installments due hereunder
and otherwise payable in installments over the remainder of the Term, and, at
Landlord's option, any other Additional Rent to the extent that such Additional
Rent can be determined and calculated to a fixed sum; and the amount of
accelerated rent to the termination date, without further notice or demand for
payment, shall be due and payable by Tenant within five (5) days after Landlord
has so notified Tenant, such amount collected from Tenant pursuant to a judgment
shall be discounted to present value using an interest rate of ten percent (10%)
per annum. Additional Rent which has not been included, in whole or in part, in
accelerated rent, shall be due and payable by Tenant during the remainder of the
Term, in the amounts and at the times otherwise provided for in this Lease.

                                      -34-
<PAGE>

          Notwithstanding the foregoing or the application of any rule of law
based on election of remedies or otherwise, if Tenant fails to pay the
accelerated rent in full when due, Landlord thereafter shall have the right by
notice to Tenant, (i) to terminate Tenant's further right to possession of the
Premises and (ii) to terminate this Lease under subparagraph (b) below; and if
Tenant shall have paid part but not all of the accelerated rent, the portion
thereof attributable to the period equivalent to the part of the Term remaining
after Landlord's termination of possession or termination of this Lease shall be
applied by Landlord against Tenant's obligations owing to Landlord, as
determined by the applicable provisions of subparagraphs (c) and (d) below.

          (b) TERMINATION OF LEASE. By notice to Tenant, Landlord shall have the
right to terminate this Lease as of a date specified in the notice of
termination and in such case, Tenant's rights, including any based on any option
to renew, to the possession and use of the Premises shall end absolutely as of
the termination date; and this Lease shall also terminate in all respects except
for the provisions hereof regarding Landlord's damages and Tenant's liabilities
arising prior to, out of and following the Event of Default and the ensuing
termination.

          Following such termination and the notice of same provided above (as
well as upon any other termination of this Lease by expiration of the Term or
otherwise) Landlord immediately shall have the right to recover possession of
the Premises; and to that end, Landlord may enter the Premises and take
possession, with the necessity of giving Tenant any notice to quit or any other
further notice, with legal process or proceedings; and in so doing Landlord may
remove Tenant's property (including any improvements or additions to the
Premises which Tenant made, unless made with Landlord's consent which expressly
permitted Tenant to not remove the same upon expiration of the Term), as well as
the property of others as may be in the Premises, and make disposition thereof
in such manner as Landlord may deem to be commercially reasonable and necessary
under the circumstances.

          (c) TENANT'S CONTINUING OBLIGATIONS/LANDLORD'S RELETTING RIGHTS.

               (1) Unless and until Landlord shall have terminated this Lease
under subparagraph (b) above, Tenant shall remain fully liable and responsible
to perform all of the covenants and to observe all the conditions of this Lease
throughout the remainder of the Term to the early termination date; and, in
addition, Tenant shall pay to Landlord, upon demand and as Additional Rent, the
total sum of all costs, losses and expenses, including reasonable attorneys'
fees, as Landlord incurs, directly or indirectly, because of any Event of
Default having occurred.

               (2) If Landlord either terminates Tenant's right to possession
without terminating this Lease or terminates this Lease and Tenant's leasehold
estate as above provided, then, subject to the provisions below, Landlord shall
have the unrestricted right to relet the Premises or any part(s) thereof to such
tenant(s) on such provisions and for such period(s) as Landlord may deem
appropriate. If Landlord relets the Premises after such a default, the costs

                                      -35-
<PAGE>

recovered from Tenant shall be reallocated to take into consideration any
additional rent which Landlord receives from the new tenant which is in excess
to that which was owed by Tenant.

          (d) LANDLORD'S DAMAGES.

               (1) The damages which Landlord shall be entitled to recover from
Tenant shall be the sum of:

                    (A) all Fixed Rent and Additional Rent accrued and unpaid as
of the termination date; and

                    (B) (i) all reasonable costs and expenses incurred by
Landlord in recovering possession of the Premises, including removal and storage
of Tenant's property, in accordance with Section 11 hereof, (ii) the costs and
expenses of restoring the Premises to the condition in which the same were to
have been surrendered by Tenant as of the expiration of the Term and accordance
with Section 11 hereof, and (iii) the costs of reletting commissions; and

                    (C) all Fixed Rent and Additional Rent (to the extent that
the amount(s) of Additional Rent has been then determined) otherwise payable by
Tenant over the remainder of the Term as reduced to present value.

Less deducting from the total determined under subparagraphs (A), (B) and (C)
all Rent and all other Additional Rent to the extent determinable as aforesaid,
(to the extent that like charges would have been payable by Tenant) which
Landlord receives from other tenant(s) by reason of the leasing of the Premises
or part during or attributable to any period falling within the otherwise
remainder of the Term.

               (2) The damage sums payable by Tenant under the preceding
provisions of this paragraph (d) shall be payable on demand from time to time as
the amounts are determined; and if from Landlord's subsequent receipt of rent as
aforesaid from reletting, there be any excess payment(s) by Tenant by reason of
the crediting of such rent thereafter received, the excess payment(s) shall be
refunded by Landlord to Tenant.

               (3) Landlord may distrain for rent, and enforce the provisions of
this Lease and may enforce and protect the rights of Landlord hereunder by a
suit or suits in equity or at law for the specific performance of any covenant
or agreement contained herein, and for the enforcement of any other appropriate
legal or equitable remedy, including, without limitation, injunctive relief, and
for recovery of all moneys due or to become due from Tenant under any of the
provisions of this Lease.

          (e) LANDLORD'S RIGHT TO CURE. Without limiting the generality of the
foregoing, if Tenant shall be in default in the performance of any of its
obligations hereunder, Landlord, without being required to give Tenant any
notice or opportunity to cure, may (but shall

                                      -36-
<PAGE>

not be obligated to do so), in addition to any other rights it may have in law
or in equity, cure such default on behalf of Tenant, and Tenant shall reimburse
Landlord upon demand for any sums paid or costs incurred by Landlord in curing
such default, including reasonable attorneys' fees and other legal expenses,
together with interest at 10% per annum Rate from the dates of Landlord's
incurring of costs or expenses.

          (f) ADDITIONAL REMEDIES. In addition to, and not in lieu of any of the
foregoing rights granted to Landlord:

               (i) TENANT HEREBY EMPOWERS ANY PROTHONOTARY, CLERK OF COURT OR
ATTORNEY OF ANY COURT OF RECORD TO APPEAR FOR TENANT IN ANY AND ALL ACTIONS
WHICH MAY BE BROUGHT FOR EVICTION OF THE TENANT FROM THE PREMISES AND FOR
POSSESSION OF THE PREMISES BY LANDLORD, AND TO SIGN FOR TENANT AN AGREEMENT FOR
ENTERING IN ANY COMPETENT COURT AN ACTION OR ACTIONS FOR EVICTION OR RECOVERY OF
SAID POSSESSION, AND IN SAID SUIT OR IN SAID ACTION OR ACTIONS TO CONFESS
JUDGEMENT AGAINST TENANT FOR EVICTION AND FOR SUCH POSSESSION. SUCH AUTHORITY
SHALL NOT BE EXHAUSTED BY ONE EXERCISE THEREOF, BUT JUDGMENT MAY BE CONFESSED AS
AFORESAID FROM TIME TO TIME AS OFTEN AS TENANT SHALL HAVE COMMITTED AN EVENT OF
DEFAULT, AND SUCH POWERS MAY BE EXERCISED AS WELL AFTER THE EXPIRATION OF THE
TERM OR DURING ANY EXTENSION OR RENEWAL OF THIS LEASE.

          (g) INTEREST ON DAMAGE AMOUNTS. Any sums payable by Tenant hereunder,
which are not paid after the same shall be due, shall bear interest from that
day until paid at the rate of four (4%) percent over the then Prime Rate as
published daily under the heading "Money Rates" in THE WALL STREET JOURNAL,
unless such rate be usurious as applied to Tenant, in which case the highest
permitted legal rate shall apply (the "Default Rate").

          (h) LANDLORD'S STATUTORY RIGHTS. Landlord shall have all rights and
remedies now or hereafter existing at law or in equity with respect to the
enforcement of Tenant's obligations hereunder and the recovery of the Premises.
No right or remedy herein conferred upon or reserved to Landlord shall be
exclusive of any other right or remedy, but shall be cumulative and in addition
to all other rights and remedies given hereunder or now or hereafter existing at
law. Landlord shall be entitled to injunctive relief in case of the violation,
or attempted or threatened violation, of any covenant, agreement, condition or
provision of this Lease, or to a decree compelling performance of any covenant,
agreement, condition or provision of this Lease.

          (i) REMEDIES NOT LIMITED. Nothing herein contained shall limit or
prejudice the right of Landlord to exercise any or all rights and remedies
available to Landlord by reason of default or to prove for and obtain in
proceedings under any bankruptcy or insolvency laws, an amount equal to the
maximum allowed by any law in effect at the time when, and governing the

                                      -37-
<PAGE>

proceedings in which, the damages are to be proved, whether or not the amount be
greater, equal to, or less than the amount of the loss or damage referred to
above.

          (j) NO WAIVER BY LANDLORD. No delay or forbearance by Landlord in
exercising any right or remedy hereunder, or Landlord's undertaking or
performing any act or matter which is not expressly required to be undertaken by
Landlord shall be construed, respectively, to be a waiver of Landlord's rights
or to represent any agreement by Landlord to undertake or perform such act or
matter thereafter. Waiver by Landlord of any breach by Tenant of any covenant or
condition herein contained (which waiver shall be effective only if so expressed
in writing by Landlord) or failure by Landlord to exercise any right or remedy
in respect of any such breach shall not constitute a waiver or relinquishment
for the future of Landlord's right to have any such covenant or condition duly
performed or observed by Tenant, or of Landlord's rights arising because of any
subsequent breach of any such covenant or condition nor bar any right or remedy
of Landlord in respect of such breach or any subsequent breach. Landlord's
receipt and acceptance of any payment from Tenant which is tendered not in
conformity with the provisions of this Lease or following an Event of Default
(regardless of any endorsement or notation on any check or any statement in any
letter accompanying any payment) shall not operate as an accord and satisfaction
or a waiver of the right of Landlord to recover any payments then owing by
Tenant which are not paid in full, or act as a bar to the termination of this
Lease and the recovery of the Premises because of Tenant's previous default.

     24. CURING TENANT'S DEFAULTS. If Tenant shall default in the performance of
any of its non-monetary obligations hereunder, Landlord without prejudice and in
addition to any other rights it may have at law or in equity, after giving
Tenant written notice of such default and after failure by Tenant within thirty
(30) days of the receipt of such notice to correct or to undertake and
diligently pursue correction of said default(s) in which event the thirty day
period shall be extended for a reasonable time not to exceed an additional
fifteen (15) days (which notice and/or opportunity to cure shall not be required
in case Landlord shall determine that an emergency exists requiring prompt
action), may cure such defaults(s) on behalf of Tenant; and Tenant shall
reimburse Landlord on demand for all costs incurred by Landlord in that regard
plus interest thereon from the date(s) of expenditure at the Default Rate, which
shall be deemed Additional Rent payable hereunder.

     26. LANDLORD'S REPRESENTATIONS AND WARRANTIES. Landlord represents and
warrants to Tenant that: (a) Landlord is the fee owner of the Building and the
Project; (b) Landlord has the authority to enter into this Lease; and (c) to the
Landlord's knowledge, the Premises is free of any "hazardous substances" or
asbestos-containing materials as such terms are defined under Applicable
Environmental Law.

     27. SURRENDER. Tenant shall, at the expiration of the Term, promptly quit
and surrender the Premises in good order and condition and in conformity with
the applicable provisions of this Lease, excepting only reasonable wear and tear
and damage by fire or other insured casualty. Tenant shall have no right to hold
over beyond the expiration of the Term and

                                      -38-
<PAGE>

in the event Tenant shall fail to deliver possession of the Premises as herein
provided, such occupancy shall not be construed to effect or constitute other
than a tenancy at sufferance. During any period of occupancy beyond the
expiration of the Term the amount of rent owed to Landlord by Tenant shall
automatically become two hundred percent (200%) the sum of the Rent as those
sums are at that time calculated under the provisions of the Lease. If Tenant
fails to surrender the space within thirty (30) days of the termination date,
Landlord may elect to automatically extend the Term for an additional month or
additional year, at Landlord's option, with a Rent of two hundred percent (200%)
the sum of the Rent as those sums are at that time calculated under the
provisions of the Lease. The acceptance of rent by Landlord or the failure or
delay of Landlord in notifying or evicting Tenant following the expiration or
sooner termination of the Term shall not create any tenancy rights in Tenant and
any such payments by Tenant may be applied by Landlord against its costs and
expenses, including attorney's fees incurred by Landlord as a result of such
holdover. Landlord agrees to treat Tenant as a holdover (as opposed to a
trespasser) so long as Landlord and Tenant are negotiating in good faith to
extend the term of this Lease.

     28. RULES AND REGULATIONS. Tenant agrees that at all times during the terms
of this Lease (as same may be extended) it, its employees, agents, invitees and
licenses shall comply with all rules and regulations specified on EXHIBIT "E"
attached hereto and made a part hereof, together with all reasonable Rules and
Regulations as Landlord may from time to time promulgate provided they do not
increase the financial burdens of Tenant or unreasonably restrict Tenant's
rights under this Lease or materially and adversely affect Tenant's use or
occupancy of the Premises. Tenant's right to dispute the reasonableness of any
changes in or additions to the Rules and Regulations shall be deemed waived
unless asserted to Landlord within ten (10) business days after Landlord shall
have given Tenant written notice of any such adoption or change. In case of any
conflict or inconsistency between the provisions of this Lease and any Rules and
Regulations, the provisions of this Lease shall control. Landlord shall have no
duty or obligation to enforce any Rule and Regulation, or any term, covenant or
condition of any other lease, against any other tenant, and Landlord's failure
or refusal to enforce any Rule or Regulation or any term, covenant of condition
of any other lease against any other tenant shall be without liability of
Landlord to Tenant. However, if Landlord does enforce Rules or Regulations,
Landlord shall endeavor to enforce same equally in a non-discriminatory manner.

     29. GOVERNMENTAL REGULATIONS.

          (a) Tenant shall, in the use and occupancy of the Premises and the
conduct of Tenant's business or profession therein, at all times comply with all
applicable laws, ordinances, orders, notices, rules and regulations of the
federal, state and municipal governments, or any of their departments and the
regulations of the insurers of the Premises, Building and/or Project.

          (b) Without limiting the generality of the foregoing, Tenant shall (i)
obtain, at Tenant's expense, before engaging in Tenant's business or profession
within the Premises, all necessary licenses and permits including (but not
limited to) state and local business licenses or

                                      -39-
<PAGE>

permits, and (ii) remain in compliance with and keep in full force and effect at
all times all licenses, consents and permits necessary for the lawful conduct of
Tenant's business or profession at the Premises. Tenant shall pay all personal
property taxes, income taxes and other taxes, assessments, duties, impositions
and similar charges which are or may be assessed, levied or imposed upon Tenant
and which, if not paid, could be liened against the Premises or against Tenant's
property therein or against Tenant's leasehold estate.

          (c) Landlord shall be responsible for compliance with Title III of the
Americans with Disabilities Act of 1990, 42 U.S.C. Section 12181 ET SEQ. and its
regulations, (collectively, the "ADA") (i) as to the design and construction of
exterior common areas (E.G. sidewalks and parking areas) and (ii) with respect
to the initial design and construction by Landlord of Landlord's Work (as
defined in Article 4 hereof). Except as set forth above in the initial sentence
hereto, Tenant shall be responsible for compliance with the ADA in all other
respects concerning the use and occupancy of the Premises, which compliance
shall include, without limitation (i) provision for full and equal enjoyment of
the goods, services, facilities, privileges, advantages or accommodations of the
Premises as contemplated by and to the extent required by the ADA, (ii)
compliance relating to requirements under the ADA or amendments thereto arising
after the date of this Lease and (iii) compliance relating to the design,
layout, renovation, redecorating, refurbishment, alteration, or improvement to
the Premises made or requested by Tenant at any time following completion of the
Landlord's Work.

          (d) Tenant shall indemnify, protect, defend and save Landlord harmless
with regard to any non-compliance or alleged non-compliance by Tenant with any
law, order, ordinance, regulation, permit, license or other governmental matter
in any way relating to the conduct of Tenant's business or profession in the
Premises. If Landlord is named as defendant or a responsible party with respect
to any alleged violation or non-compliance by Tenant as aforesaid, Landlord also
may require, by notice to Tenant, that the matters or conduct giving rise
thereto be discontinued by Tenant unless and until the alleged violation or
non-compliance is resolved in Tenant's favor.

     30. NOTICES. Wherever in this Lease it shall be required or permitted that
notice or demand be given or served by either party to this Lease to or on the
other party, such notice or demand shall be deemed to have been duly given or
served if in writing and either: (i) personally served; (ii) delivered by
pre-paid nationally recognized overnight courier service (E.G. Federal Express)
with evidence of receipt required for delivery; or (iii) forwarded by Registered
or Certified mail, return receipt requested, postage prepaid; in all such cases
addressed to the parties at the addresses set forth in Article 1(1) hereof.
Each such notice shall be deemed to have been given to or served upon the party
to which addressed on the date the same is delivered or delivery is refused.
Either party hereto may change its address to which said notice shall be
delivered or mailed by giving written notice of such change to the other party
hereto, as herein provided.

     31. BROKERS. Tenant represents and warrants to Landlord that Tenant has had
no dealings, negotiations or consultations with respect to the Premises or this
transaction with any

                                      -40-
<PAGE>

broker or finder other than the Broker identified in Article 1(k); and that
otherwise no broker or finder called the Premises to Tenant's attention for
lease or took any part in any dealings, negotiations or consultations with
respect to the Premises or this Lease. Tenant agrees to indemnify and hold
Landlord harmless from and against all liability, cost and expense, including
attorney's fees and court costs, arising out of any misrepresentation or breach
of warranty under this Article.

     32. CHANGE OF BUILDING/PROJECT NAME. Landlord reserves the right at any
time and from time to time to change the name by which the Building and/or
Project is designated.

     33. LANDLORD'S LIABILITY. Landlord's obligations hereunder shall be binding
upon Landlord only for the period of time that Landlord is in ownership of the
Building; and, upon termination of that ownership, Tenant, except as to any
obligations which are then due and owing, shall look solely to Landlord's
successor in interest in the Building for the satisfaction of each and every
obligation of Landlord hereunder. Neither Landlord nor any of its partners shall
have any personal liability under any of the terms, conditions or covenants of
this Lease and Tenant shall look solely to Landlord's equity interest in the
Project for the satisfaction of any claim, remedy or cause of action accruing to
Tenant as a result of the breach of any section of this Lease by Landlord. In
addition to the foregoing, no recourse shall be had for an obligation of
Landlord hereunder, or for any claim based thereon or otherwise in respect
thereof, against any past, present or future trustee, member, partner,
shareholder, officer, director, partner, agent or employee of Landlord, whether
by virtue of any statute or rule of law, or by the enforcement of any assessment
or penalty or otherwise, all such other liability being expressly waived and
released by Tenant with respect to the above-named individuals and entities.

     34. AUTHORITY. Tenant represents and warrants that (a) Tenant is duly
organized, validly existing and legally authorized to do business in the
Commonwealth of Pennsylvania, and (b) the persons executing this Lease are duly
authorized to execute and deliver this Lease on behalf of Tenant.

     35. NO OFFER. The submission of the Lease by Landlord to Tenant for
examination does not constitute a reservation of or option for the Premises or
of any other space within the Building or in other buildings owned or managed by
Landlord or its affiliates. This Lease shall become effective as a Lease only
upon the execution and legal delivery thereof by both parties hereto.

     36. RENEWAL. Provided Tenant is not in default of any obligations under
this Lease, either at the time of exercise of this option, or at the
commencement of the Renewal Term and Tenant is fully occupying the Premises and
the Lease is in full force and effect, Tenant shall have the right to renew this
Lease for two (2) terms of five (5) years each beyond the end of the initial
Term (each, a "Renewal Term"). Tenant shall furnish written notice of its intent
to renew at least twelve (12) months prior to the expiration of the applicable
Term, failing which, such renewal right shall be deemed waived; time being of
the essence. The terms and conditions of

                                      -41-

<PAGE>

this Lease during each Renewal Term shall remain unchanged, except that the
Fixed Rent to be paid by Tenant to Landlord for each year of each Renewal Term
shall be as set forth in Section 5(a) of this Lease. Tenant hereby acknowledges
that in the event that Landlord's costs in connection with those items that
comprise the Operating Expenses, excluding the items listed in Section 6(a)(3)
hereof, increase from time to time during the Term and any Renewal Term of this
Lease, then the Operating Expenses to be charged to Tenant shall increase
accordingly. As used in this Lease, the word "Term" shall include any validly
exercised Renewal Term.

     37. ROOF RIGHTS.

          (a) All references to the "roof" in this Lease shall be deemed to
refer solely to the roof of the Building and shall exclude any roof on any other
building or premises. Tenant hereby acknowledges that the roof is being
delivered to Tenant in connection with this Lease in its "as-is", "wear-is"
condition and that the Landlord is making no representations or warranties,
either expressed or implied, whatsoever in connection with said roof. At such
time as the roof of the Premises requires replacement, as determined by Tenant
in its commercially reasonable judgment in consultation with Landlord, Tenant
shall replace the existing roof of the Premises without any liability on
Landlord's part therefor except as set forth in this Section 37(a). The Tenant
shall be required to pay the cost for the replacement of the roof; provided,
however, that upon the completion of the replacement of the roof and the
furnishing of evidence by Tenant to Landlord that said roof has been replaced in
accordance with the terms of this Section 37(a) by a licensed roofing
contractor, Landlord shall pay to Tenant the lesser of (i) the sum of One
Hundred and Fifty Thousand Dollars ($150,000.00), or (ii) the cost of Tenant for
the replacement of said roof. All of Tenant's work in connection with said roof
shall be done in compliance with all appropriate zoning and building code
statutes, laws, rules, regulations and ordinances and Tenant shall be
responsible, at its own cost and expense, for the procurement of any and all
permits and certificates of occupancy in connection therewith. Landlord shall
have the right to approve the Tenant's choice of the roofing contractor selected
by Tenant, which approval shall not be unreasonably withheld or delayed by
Landlord. Tenant shall be responsible for all maintenance, repairs and
replacement of the roof during the Term and any Renewal Term of this Lease and,
to the extent an assignment is permitted, shall be assigned all warranties and
guarantees, if any, held by Landlord with respect thereto for enforcement
thereof by Tenant. In the event that said warranties or guaranties cannot be
assigned, Landlord, upon Tenant's request, shall take reasonable steps to
enforce said warranties or guaranties.

          (b) So long as it (i) does not impact Landlord's roof warranty, if
any, and (ii) complies with all applicable laws, rules and regulations, Tenant,
at its sole cost and expense but without additional charge hereunder other than
utility fees which may be imposed for actual usage, shall have access to the
roof of the Building in designated areas mutually agreed upon for the purpose of
installation of microwave satellite, antenna and other communications devices or
supplemental HVAC units and venting units (collectively, the "Roof Equipment")
and with respect to telecommunications installations, Tenant shall use its best
efforts to utilize US Realtel to provide such services, or such other contractor
as may be acceptable to Landlord, upon its

                                      -42-
<PAGE>

prior written consent and approval, which consent shall not be reasonably
withheld or delayed. Notwithstanding the foregoing, all such Roof Equipment
shall be for the sole benefit of Tenant and Landlord, shall relate specifically
to Tenant's use of the Premises, and shall not be used as a switching station,
amplification station or by other tenants or third parties. Tenant shall make a
request for approval of the Roof Equipment hereunder by submission of specific
plans and specifications for the work to be performed by Tenant. Landlord shall
respond in writing within fifteen (15) business days from receipt of the same,
advising Tenant of approved contractors and those portions of the work that are
acceptable and disapproving those portions of the work that are, in Landlord's
judgment, reasonably exercised, unacceptable and with respect to the plans,
specifying in detail the nature of Landlord's objection. Tenant shall be solely
responsible for the removal of all Roof Equipment and the restoration of the
roof upon the expiration or early termination of this Lease unless directed in
writing by Landlord otherwise. All installation, repair, replacement and
modification of the Roof Equipment shall be coordinated with Landlord, shall
only use those contractors approved by Landlord, which approval shall not be
unreasonably withheld or delayed by Landlord, and shall be in accordance with
the Rules and Regulations set forth herein.

     38. MISCELLANEOUS PROVISIONS.

          A. SUCCESSORS. The respective rights and obligations provided in this
Lease shall bind and inure to the benefit of the parties hereto, their
successors and assigns; provided, however, that no rights shall inure to the
benefit of any successors of Tenant unless Landlord's written consent for the
transfer to such successor and/or assignee has first been obtained as provided
in Article 13 hereof.

          B. GOVERNING LAW. This Lease shall be construed, governed and enforced
in accordance with the laws of the Commonwealth of Pennsylvania, without regard
to principles relating to conflicts of law.

          C. SEVERABILITY. If any provisions of this Lease shall be held to be
invalid, void or unenforceable, the remaining provisions hereof shall in no way
be affected or impaired and such remaining provisions shall remain in full force
and effect.

          D. CAPTIONS. Marginal captions, titles or exhibits and riders and the
table of contents in this Lease are for convenience and reference only, and are
in no way to be construed as defining, limiting or modifying the scope or intent
of the various provisions of this Lease.

          E. GENDER. As used in this Lease, the word "person" shall mean and
include, where appropriate, an individual, corporation, partnership or other
entity; the plural shall be substituted for the singular, and the singular for
the plural, where appropriate; and the words of any gender shall mean to include
any other gender.

                                      -43-
<PAGE>

          F. ENTIRE AGREEMENT. This Lease, including the Exhibits and any Riders
hereto (which are hereby incorporated by this reference, except that in the
event of any conflict between the printed portions of this Lease and any
Exhibits or Riders, the term of such Exhibits or Riders shall control),
supersedes any prior discussions, proposals, negotiations and discussions
between the parties and the Lease contains all the agreements, conditions,
understandings, representations and warranties made between the parties hereto
with respect to the subject matter hereof, and may not be modified orally or in
any manner other than by an agreement in writing signed by both parties hereto
or their respective successors in interest. Without in any way limiting the
generality of the foregoing, this Lease can only be extended pursuant to the
terms hereof, and in Tenant's case, with the terms hereof, and in Tenant's case,
with the due exercise of an option (if any) contained herein or a formal
agreement signed by both Landlord and Tenant specifically extending the term. No
negotiations, correspondence by Landlord or offers to extend the term shall be
deemed an extension of the termination date for any period whatsoever.

          G. COUNTERPARTS. This Lease may be executed in any number of
counterparts, each of which when taken together shall be deemed to be one and
the same instrument.

          H. TELEFAX SIGNATURES. The parties acknowledge and agree that
notwithstanding any law or presumption to the contrary a telefaxed signature of
either party whether upon this Lease or any related document shall be deemed
valid and binding and admissible by either party against the other as if same
were an original ink signature.

          I. CALCULATION OF TIME. In computing any period of time prescribed or
allowed by any provision of this Lease, the day of the act, event or default
from which the designated period of time begins to run shall not be included.
The last day of the period so computed shall be included, unless it is a
Saturday, Sunday or a legal holiday, in which event the period runs until the
end of the next day which is not a Saturday, Sunday, or legal holiday. Unless
otherwise provided herein, all Notices and other periods expire as of 5:00 p.m.
(LOCAL TIME IN NEWTOWN SQUARE, PENNSYLVANIA) on the last day of the Notice or
other period.

          J. NO MERGER. There shall be no merger of this Lease or of the
leasehold estate hereby created with the fee estate in the Premises or any part
thereof by reason of the fact that the same person, firm, corporation, or other
legal entity may acquire or hold, directly or indirectly, this Lease of the
leasehold estate and the fee estate in the Premises or any interest in such fee
estate, without the prior written consent of Landlord's mortgagee.

          K. TIME OF THE ESSENCE. TIME IS OF THE ESSENCE IN ALL PROVISIONS OF
THIS LEASE, INCLUDING ALL NOTICE PROVISIONS TO BE PERFORMED BY OR ON BEHALF OF
TENANT.

          L. RECORDATION OF LEASE. Tenant shall not record this Lease without
the written consent of Landlord. Upon Landlord's request or with Landlord's
written consent, the parties agree to execute a short form of this Lease for
recording purposes containing such terms

                                      -44-
<PAGE>

as Landlord believes appropriate or desirable, the expense thereof to be borne
by Tenant. If such a short form of this Lease is recorded, upon the termination
of this Lease, Tenant shall execute, acknowledge, and deliver to Landlord an
instrument in writing releasing and quit claiming to Landlord all right, title
and interest of Tenant in and to the Premises arising from this Lease or
otherwise, all without cost or expense to Landlord.

          M. ACCORD AND SATISFACTION. No payment by Tenant or receipt by
Landlord of a lesser amount than any payment of Fixed Rent or Additional Rent
herein stipulated shall be deemed to be other than on account of the earliest
stipulated Fixed Rent or Additional Rent due and payable hereunder, nor shall
any endorsement or statement or any check or any letter accompanying any check
or payment as Rent be deemed an accord and satisfaction. Landlord may accept
such check or payment without prejudice to Landlord's right to recover the
balance of such Rent or pursue any other right or remedy provided for in this
Lease, at law or in equity.

          N. NO PARTNERSHIP. Landlord does not, in any way or for any purpose,
become a partner of Tenant in the conduct of its business, or otherwise, or
joint venturer or a member of a joint enterprise with Tenant. This Lease
establishes a relationship solely of that of a landlord and tenant.

          0. NO PRESUMPTION AGAINST DRAFTER. Landlord and Tenant understand,
agree, and acknowledge that: (i) this Lease has been freely negotiated by
both parties; and (ii) that, in the event of any controversy, dispute, or
contest over the meaning, interpretation, validity, or enforceability of this
Lease, or any of its terms or conditions, there shall be no inference,
presumption, or conclusion drawn whatsoever against either party by virtue of
that party having drafted this Lease or any portion thereof.

          P. COMPLIANCE WITH LAWS. At the commencement of Tenant's initial Lease
Term, and upon Landlord's delivery of the Premises to Tenant, the exterior, and
all structural elements, of the Building shall be in compliance with all
municipal, county, state and federal laws, codes, and requirements. Landlord and
Tenant hereby acknowledge that the respective rights and obligations of Landlord
and Tenant with regard to the ADA are addressed in Section 29(c) hereof.

          Q. CONSENT/DUTY TO ACT REASONABLY. Regardless of any reference to the
words "sole" or "absolute" (except for matters which (a) are reasonably likely
to have an adverse effect on the structural integrity of the Building, (b) are
reasonably likely to have an adverse effect on the Building's systems, or (c)
are reasonably likely to have an effect on the exterior appearance of the
Building, whereupon in each such case Landlord's duty is to act in good faith
and in compliance with the Lease), any time the consent of Landlord or Tenant is
required, such consent shall not be unreasonably withheld, conditioned or
delayed. Whenever the lease grants Landlord or Tenant the right to take action,
exercise discretion, established rules and regulations or make allocations or
other determinations (other than decisions to exercise expansion, contractions,
cancellation, termination or renewal options), Landlord and Tenant shall act

                                      -45-
<PAGE>

reasonably and in good faith and take no action which is reasonably likely to
result in the frustration of the reasonable expectations of a sophisticated
tenant or landlord concerning the benefits to be enjoyed under this Lease.

          R. DAYS. All references to "notice" shall mean written notice given in
compliance with Section 30 of this Lease. Whenever in the Lease a payment is
required to be made by one party to the other, but a specific date for payment
is not set forth or a specific number of days within which payment is to be made
is not set forth, or the words "immediately", "promptly" and/or "on demand", or
their equivalent, are used to specify when such payment is due, then such
payment shall be due within five (5) days after the party which is entitled to
such payment.

          S. ABATEMENT OF RENT WHEN TENANT IS PREVENTED FROM USING PREMISES. In
the event that Tenant is prevented from using, and does not use, the Premises or
any portion thereof, for three (3) consecutive business days or ten (10)
business days in any twelve (12) month period (the "Eligibility Period") as a
result of (a) any damage or destruction to the Premises and /or the Building,
(b) any repair, maintenance or alteration performed by Landlord after the
Commencement Date and required or permitted by this Lease, which substantially
interferes with Tenant's use of the Premises, (c) any failure by Landlord to
provide Tenant with services or access to the Premises and/or the Building, (d)
any eminent domain proceeding which substantially interferes with Tenant's use
of the Premises, (e) the presence of Hazardous Materials in, on or around the
Premises or the Building which poses a health risk to occupants of the Premises
and are not attributable to the acts of Tenant or its employees, agents
representatives, licensees or invitees, or (f) construction activities of
Landlord on or about the Building and/or Project, and provided that said
prevention is not caused by the acts or omissions of Tenant or its employees,
agents, representatives, licensees or invitees, Tenant's rent shall be abated or
reduced, as the case may be, after expiration of the Eligibility Period and for
such time, on a day-for-day basis, that Tenant continues to be so prevented from
using, and does not use, the Premises or a portion thereof, in the proportion
that the rentable area of the portion of the Premises that Tenant is prevented
from using, and does not use, bears to the total rentable area of the Premises.
However, in the event that Tenant is prevented from conducting, and does not
conduct its business in any portion of the Premises for a period of time in
excess of the Eligibility Period, and the remaining portion of the Premises is
not sufficient to allow Tenant to effectively conduct its business therein, and
if Tenant does not conduct its business from such remaining portion, then for
such time after expiration of the Eligibility Period during which Tenant is so
prevented from effectively conducting its business therein, the Rent for the
entire Premises shall be abated: provided however, if Tenant re-occupies and
conducts its business from any portion of the Premisses during such period, the
rent allocable to such reoccupied portion, based on the proportion that the
rentable area of such re-occupied portion of the Premises bears to the total
rentable area of the Premises, shall be payable by Tenant form the date such
business operations commence. If Tenant's right to abatement occurs because of
an eminent domain taking and/or because of damage or destruction to the
Premises, the Building, or Tenant's property, Tenant's abatement period shall
continue until Tenant has been given

                                      -46-
<PAGE>

sufficient time and sufficient access to the Premises and/or the Building, to
rebuild such portion it is required to rebuild, to install its property,
furniture, fixtures, and equipment to the extent the same shall have been
removed and/or damaged as a result of such damage or destruction and/or eminent
domain taking and to move in over one (1) weekend. It is hereby acknowledged and
agreed, however, that in the event that said prevention is caused by the acts or
omissions of Tenant or its employees, agents, representatives, licensees or
invitees, Tenant shall have no right to any abatement or reduction of rent
hereunder.

          T. Secured Areas. Tenant may designate certain areas of the Premises
as "Secured Areas", should Tenant require such areas for the purpose of securing
certain valuable property or confidential information, or for conducting
research and development or product production activities on the Premises.
Tenant shall provide observation windows for all the Secured Areas. All Secured
Areas shall be designated on a site plan of the Premises provided to Landlord by
Tenant. Landlord may not enter such Secured Areas except in the case of
emergency or in the event of a Landlord inspection, in which case Landlord shall
provide Tenant with ten (10) days' prior written notice of the specific date and
time of such Landlord inspection. Tenant hereby acknowledges that Landlord may
be required to enter the Secured Areas in order to comply with federal, state or
local statutes, rules or regulations or upon court order and shall be permitted
such access in such event. Tenant may require that Landlord be accompanied by an
employee of Tenant on all non-emergent entries by Landlord onto the Premises and
may change locks on the Premises provided Landlord is supplied with replacement
keys.

          U. Removal of Property. Subject to Section 11 hereof, all articles of
personal property and all movable business and trade fixtures, machinery and
equipment, furniture and movable partitions owned by Tenant or installed by or
on behalf of Tenant in the Premises shall remain the property of Tenant, and may
be removed by Tenant at any time during the Term of the Lease in accordance
with the Rules and Regulations for the subject Premises. Subject to the
requirements set forth in Section 11 hereof all articles of personal property
and all business and trade fixtures, machinery and equipment, furniture and
removal partitions owned by Tenant or installed by or on behalf of Tenant in the
Premises shall remain the property of Tenant, and may be removed by Tenant at
any time during the Term of the Lease in accordance with the rules and
regulations for the subject premises; provided, however, that the Tenant shall
be required to effect all necessary repairs in connection with said removal at
its sole cost and expense and shall be required, at its sole cost and expense,
to return that portion of the affected Premises to its original condition.

          V. Construction Activities. Landlord has informed Tenant that
Landlord intends to construct a multi-story building and appurtenant
improvements adjacent to the Building as part of the Project. Landlord shall use
its reasonable efforts to minimize the impact of said construction activities on
the business operations of the Tenant. The Tenant hereby acknowledges that as
part of said construction activities, Landlord shall be reconfiguring the
parking lot that is part of the Premises and the Project and will be performing
the Landlord

                                      -47-
<PAGE>

Work. Tenant further acknowledges that a substantial portion of said work will
most likely be conducted during normal business hours and the Landlord shall
grant access to the Premises to the Tenant and its employees, agents,
representatives, licensees and invitees. Landlord shall conduct such
construction activities to minimize, to the extent reasonably practicable,
adverse impact on Tenant's use and occupancy of the Premises arising as a result
of such construction activities.

     39. WAIVER OF TRIAL BY JURY. LANDLORD AND TENANT WAIVE THE RIGHT TO A TRIAL
BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, OR RELATED TO, THE SUBJECT
MATTER OF THIS LEASE. THIS WAIVER IS KNOWINGLY, INTENTIONALLY, AND VOLUNTARILY
MADE BY TENANT AND TENANT ACKNOWLEDGES THAT NEITHER LANDLORD NOR ANY PERSON
ACTING ON BEHALF OF LANDLORD HAS MADE ANY REPRESENTATIONS OF FACT TO INDUCE THIS
WAIVER OF TRIAL BY JURY OR IN ANY WAY TO MODIFY OR NULLIFY ITS EFFECT. TENANT
FURTHER ACKNOWLEDGES THAT IT HAS BEEN REPRESENTED (OR HAS HAD THE OPPORTUNITY TO
BE REPRESENTED) IN THE SIGNING OF THIS LEASE AND IN THE MAKING OF THIS WAIVER BY
INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD
THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL. TENANT FURTHER ACKNOWLEDGES
THAT IT HAS READ AND UNDERSTANDS THE MEANING AND RAMIFICATIONS OF THIS WAIVER
PROVISION AND AS EVIDENCE OF SAME HAS EXECUTED THIS LEASE.

     40. CONSENT TO JURISDICTION. Tenant hereby consents to the exclusive
jurisdiction of the state courts located in Delaware County and Philadelphia
County and to the federal courts located in the Eastern District of
Pennsylvania.

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

ATTEST:                                  LANDLORD:
                                         BRANDYWINE OPERATING PARTNERSHIP, L.P.

                                         By:   Brandywine Realty Trust,
                                               its general partner

/s/ Anthony A. Nichols, Jr.              By:   /s/ Gerard H. Sweeney
------------------------------------           --------------------------------
Anthony A. Nichols, Jr.                        Gerard H. Sweeney,
Vice President                                 President and CEO

ATTEST:                                  TENANT:

                                      -48-
<PAGE>

                                         THE IMMUNE RESPONSE CORPORATION

/s/ Howard Sampson                            By:  /s/ Dennis J. Carlo
------------------------------------          ---------------------------------
Howard Sampson                                Name:  Dennis J. Carlo
C.F.O.                                        Title: President & CEO

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