Document:

<PAGE>

                                                                    EXHIBIT 10.5
                              SUBLEASE AGREEMENT
                              ------------------

    This SUBLEASE AGREEMENT ("Sublease") is made this 19th day of November,
                                                      ---------------------
1999, by and between Hershey Communications, Inc., a California corporation
----                 ------------------------------------------------------
("Tenant") and LeadersOnline, a Delaware Corporation ("Subtenant").
               --------------------------------------

RECITALS:
--------

     A.  World Trade Center Building, Inc., a corporation ("Landlord"), as
         ------------------------------------------------
landlord, and Tenant, as tenant previously entered into that certain Office
Building Lease dated February 27, 1992 (the "Original Lease"), as amended by
that certain Amendment No. 1 thereto dated February 2, 1993, and Amendment No. 2
thereto dated April 4, 1997 (as amended, the "Master Lease"), whereby Tenant
leases from Landlord those certain premises (the "Premises") commonly known as
Suite 500, consisting of 8,835 rentable square feet, located on the fifth (5th)
floor of that certain building located at 18401 Von Karman Avenue, Irvine,
California (the "Building").

     B.  Tenant desires to sublease to Subtenant the Premises and Subtenant
desires to lease the Premises from Tenant.

     THEREFORE, Tenant and Subtenant agree as follows:

     1.  Assumption. Subtenant hereby expressly assumes and agrees to perform
         ----------
and be bound by all covenants, conditions and obligations binding upon Tenant
and the Premises under the Master Lease with regard to the Premises, except for
the payment of operating expenses and additional rent if any, which shall be and
remain the obligation of Tenant. This Sublease is expressly subject and
subordinate to the Lease and all amendments thereto and any mortgages or deeds
of trust which encumber Landlord's interest in the Premises.

     2.  Rent. Subtenant will pay to Tenant as rent for the Premises, in advance
         ----
on the first day of each calendar month of the term of this Sublease, without
deduction, offset, prior notice or demand, in lawful money of the United States,
the sum of Fifteen Thousand Four Hundred Sixty One & 25/100 Dollars
($15,461.25). Receipt of Fifteen Thousand Four Hundred Sixty One & 25/100
Dollars ($15,461.25) is hereby acknowledged by Tenant as rent for the first
month. Tenant will be responsible for the payment to Landlord of all Operating
Expenses and all other items of additional rent accruing under the Master Lease.
(Tenant will abate all rent from December 31, 1999 to January 15, 2000.)
                                                                         /s/ EMH
                                                                         -------
     3.  Term. The term of this Sublease will be for a period of twenty-eight
         ----
         (28) months, and three (3) days commencing on December 31, 1999 and
         ending on May 2, 2002.
                                                                         /s/ EMH
                                                                         -------

     4.  Use. Subtenant will use the Premises for general office purposes which
         ---
is a permitted use  described in the Master Lease, and Subtenant will otherwise
use the Premises in compliance with all of the terms of the Master Lease and for
no other purpose.

     5.  No Release. This Sublease will in no way release Tenant from any
         ----------
obligation or covenant of Tenant as tenant under the Master Lease.

     6.  Security Deposit. Subtenant will deposit with Tenant upon execution
         ----------------
hereof Forty Six Thousand, Three Hundred Eighty Three & 25/100 Dollars
($46,386.75) as security for Subtenant's faithful performance of Subtenant's
obligations hereunder. Tenant may deal with the Security Deposit in accordance
with the unmodified terms and provisions of the Master Lease which relate to a
security deposit. At anytime that Subtenant's or Subtenant's Guarantor verifies
                  -------------------------------------------------------------
a net worth exceeding Ten Million Dollars ($10,000,000.00), the Security Deposit
--------------------------------------------------------------------------------
will be reduced to an amount equal to one (1) month's rent ($15,481.25).
----------------------------------------------------------------------

     7.  Condition of Premises. Subtenant accepts the Premises in its condition
         ---------------------
existing as of the date of the execution of this Sublease, subject to the Master
Lease and all applicable zoning, municipal, county and state laws, ordinances
and regulations governing and regulating the use of the Premises. Subtenant
acknowledges that neither Tenant nor Landlord nor any of their agents or
employees have made any representations or warranties as to the suitability of
the Premises for the conduct of Subtenant's business. (Tenant will remove all
office furniture cubicles and/or workstation furniture "systems" prior to the
commencement of the Sublease.)

     8.  Construction. The terms, conditions and respective obligations of
         ------------
Tenant and Subtenant to each other under this Sublease will be the terms,
conditions and obligations contained in the Master Lease, except for those
provisions of the Master Lease which are directly contradicted by the provisions
of this Sublease, in which event, the terms of this Sublease will control over
the terms of the Master Lease as between Tenant and Subtenant only. In all other
respects, the terms of the Master Lease will control. Accordingly, for the
purposes of this Sublease, wherever in the Master Lease the term "Landlord" is
used, it will be deemed to mean the Tenant herein, and wherever in the Master
Lease the term "Tenant" is used, it will be deemed to mean the Subtenant herein.
<PAGE>

     9.  Attornment. If Tenant defaults in its obligations under the Master
         ----------
Lease or the Master Lease terminates for any reason including, without
limitation, a voluntary surrender by Tenant or any reentry or repossession of
the Premises by Landlord, Landlord may terminate this Sublease or, at Landlord's
option and without being obligated to do so, Landlord may require Subtenant to
attorn to Landlord and, in the event Landlord exercises such option, Subtenant
does hereby attorn to Landlord and agrees to perform its obligations under this
Sublease directly to Landlord, in which event Landlord will take over all right,
title and interest of Tenant under this Sublease from the time of the exercise
of such option through the expiration or earlier termination of the term of this
Sublease. In the event of any such assumption of this Sublease by Landlord and
attornment by Subtenant, Landlord will not (i) be liable for any prepaid rents
or security deposit paid by Subtenant to Tenant more than one month in advance,
(ii) be liable for any previous acts, omissions or defaults of Tenant under this
Sublease; (iii) be subject to any defense or offset previously accrued in favor
of Subtenant against Tenant; or (iv) be bound by any modification of this
Sublease made without Landlord's written consent.

     10.  Parking. Provided Subtenant is not in default hereunder, and provided
          -------
further that Tenant is not in default under the Master Lease, Subtenant will
have a license to use up to twenty eight (28) of the unreserved parking spaces
and four (4) of the reserved parking spaces which Tenant is licensed to use,
pursuant to and in accordance with the terms of the Master Lease relative to
parking; provided, however, Subtenant will pay directly to Landlord or
Landlord's parking operator $35.00 per unreserved parking space and $75.00 per
reserved parking space, as set forth in the Master Lease as a condition to
Subtenant's continued use of such parking spaces.

     11.  Further Assignment. Subtenant will not further sublease the Premises
          ------------------
or any portion thereof or assign any of its rights or delegate any of its duties
under this Sublease, without first obtaining the prior written consent of Tenant
and Landlord, which consent shall not be unreasonably withheld.

     12.  Insurance. Subtenant will, during the entire term of this Sublease,
          ---------
carry all insurance policies required to be carried by Tenant under the Master
Lease in accordance with the terms of the Master Lease. Subtenant will name
Tenant, Landlord and its Mortgagees as additional insured under all insurance
policies. Subtenant will supply Tenant with a Certificate of Insurance
identifying the above.

     13.  Brokers. Tenant and Subtenant each warrant that they have dealt with
          -------
no other real estate brokers in connection with this transaction except CB
Richard Ellis, Inc. who represents the Tenant and Cushman Realty who represents
the Subtenant.

     IN WITNESS WHEREOF, Tenant and Subtenant have executed this Sublease as of
the date first written above.

          Tenant:                           Subtenant:

HERSHEY COMMUNICATIONS, INC.,               LEADERSONLINE, INC.,
a California Corporation                    a Delaware Corporation

By:  /s/ EDWIN HERSHEY                      /s/ MICHAEL T. CHRISTY
         --------------------                   ---------------------------
Print Name:  Edwin Hershey                  Print Name:  Michael T. Christy
             ----------------                            ------------------
Print Title: President                      Print Title: President
             ----------------                            ------------------

The undersigned Landlord under the Master Lease attached hereto as Exhibit "A"
hereby consents to the subletting of the Premises described herein on the ter
and conditions contained in this Sublease. This consent applies only to this
Sublease and is not to be deemed to be a consent to any other sublease or
assignment.

          LANDLORD:

          WORLD TRADE CENTER BUILDING, INC.,
          a corporation

          By:  CB Richard Ellis, Inc.,
               a Delaware corporation,
               Its Authorized Agent

          By:      /s/ BARRY A. KATZ
                       --------------------------
          Print Name:  Barry A. Katz
                       --------------------------
          Print Title: Managing Director
                       --------------------------

<PAGE>

                        CONSENT OF LANDLORD TO SUBLEASE

WORLD TRADE CENTER BUILDING, INC., a Corporation ("Landlord"), the landlord
------------------------------------------------
under that certain Lease ("Master Lease") dated February 27, 1992, entered into
by and between Landlord and Hershey Communications Inc., a California
                            -----------------------------------------
Corporation ("Tenant"), whereby Tenant, as the tenant, leased suite 500 in that
-----------
certain building located at 18401 Von Karman in Irvine, California
(the "Premises"), hereby consents to the sublease of the Premises by Tenant to
LeadersOnline, a Delaware Corporation ("Subtenant"). Landlord's consent is not
-------------------------------------
intended, and shall not be construed (i) to modify or otherwise affect any of
the provisions of the Master Lease, or to release Tenant from any of its
obligations and duties under the Master Lease, (ii) as a waiver of any of
Landlord's rights under the Master Lease, (iii) as an authorization or a consent
by Landlord to any assignment of the interest of Tenant in the Master Lease or
to the further subleasing of the Premises, and (iv) as binding or obligating
Landlord in any manner whatsoever with respect to any of the covenants,
undertakings, representations, warranties or agreements contained in the
sublease agreement (the "Sublease Agreement"), if any, between Tenant and
Subtenant.

     Notwithstanding the foregoing, it is a condition to Landlord's consent to
the Sublease that Subtenant's occupancy of the Premises and any Sublease
Agreement are subject to the following: (i) Subtenant's occupancy of the
Premises and any Sublease Agreement will be subject and subordinate to the
Master Lease and to all mortgages are secured, in whole or in part, by the
Premises; (ii) Landlord may enforce the provisions of the Sublease Agreement, if
any, including collection of rent directly from Subtenant; (iii) in the event of
termination of the Master Lease for any reason whatsoever, including, without
limitation, a voluntary surrender by Tenant, or any default by Tenant, or in the
event of any re-entry or repossession of the Premises by Landlord, Landlord may,
at its option, either (a) terminate the Sublease agreement and Subtenants
occupancy of the Premises, or (b) take over all of the right, title and interest
of Tenant, as sublandlord, under the Sublease Agreement, in which case the
Subtenant will attorn to Landlord, but that nevertheless Landlord will not (1)
be liable for any previous act or omission of Tenant under the Sublease, (2) be
subject to any defense or offset previously accrued in favor of the Subtenant
against Tenant, or (3) be bound by any previous prepayment by Subtenant of more
than one month's rent.

     This Consent of Landlord has been executed this 3rd day of December, 1999.

LANDLORD:

WORLD TRADE CENTER BUILDING, INC.,
a Corporation

By:  CB Richard Ellis, Inc.,
     a Delaware corporation
     Its Authorized Agent

By:  /s/ BARRY A. KATZ
     ------------------------------
Print Name:  Barry Katz
             ----------------------
Print Title:  Managing Director
             ----------------------

The undersigned Tenant and Subtenant referred to hereinabove hereby acknowledge
and accept the conditions of Landlord's consent to the Sublease as described
hereinabove.

Tenant:                                     Subtenant:

Hershey Communications, Inc.                Leaders Online, Inc.
a California Corporation                    a Delaware Corporation

By:  /s/ EDWIN M. HERSHEY                  By:  /s/ MICHAEL T. CHRISTY
     ------------------------                   ----------------------------
Print Name: Edwin M. Hershey                Print Name:  Michael T. Christy
            -----------------                          ---------------------
Title:  President                           Title:  President
        ---------------------                       ------------------------

<PAGE>

            Amendment to Sublease Agreement Dated November 19, 1999
            by and between, Hershey Communications, Inc. as "Tenant"
                     and Leaders Online as "Subtenant" and
                World Trade Center Building, Inc. as "Landlord"

Security Deposit Distribution Agreement:
---------------------------------------

The Security Deposit, as detailed in paragraph six (6), totaling Forty Six
Thousand three Hundred Eighty three & 75/100 ($46,383.75) shall be distributed
as follows:

a. Fifteen Thousand Dollars ($15,000.00) shall be paid by Subtenant
   (LeadersOnline) directly to Landlord (World Trade Center Building, Inc.) to
   be credited to the account of the Tenant (Hershey Communications, Inc.).

b. Upon Landlord's verification that Subtenant has a net worth in excess of Ten
   Million Dollars ($10,000,000.00) or Landlord has received a written and fully
   executed sublease guaranty by an entity that Landlord has verified to have a
   net worth in excess of Ten Million Dollars ($10,000,000.00) and no default
   exists under the lease or sublease, Landlord will refunded to the Subtenant
   (Leaders Online) the Fifteen Thousand Dollars ($15,000.00) deposit.

c. Thirty One Thousand three Hundred Eighty three & 75/100 ($31,383.75) shall be
   paid by Subtenant (Leaders Online) directly to Tenant (Hershey
   Communications, Inc.).

d. Upon Tenant's verification that Subtenant has a net worth in excess of Ten
   Million Dollars ($10,000,000.00) or Tenant has received a written and fully
   executed sublease guaranty by an entity that Tenant has verified to have a
   net worth in excess of Ten Million Dollars ($10,000,000.00) and no default
   exists under the sublease, Fifteen Thousand Nine Hundred Twenty Two Dollars &
   25/100 ($15,922.25) of the deposit will be refunded to the Subtenant
   (Leaders Online) by the Tenant (Hershey Communications, Inc.).

Tenant:                                  Subtenant:

HERSHEY COMMUNICATIONS, INC.,            LEADERSONLINE, INC.,
a California Corporation                 a Delaware Corporation

By: /s/ E. M. HERSHEY II                 By: /s/ MICHAEL T. CHRISTY
   ________________________________         ____________________________________

Print Name: E. M. Hershey II             Print Name: Michael T. Christy
           ________________________                 ____________________________

Print Title: President                   Print Title: President
            _______________________                  ___________________________

Landlord:

WORLD TRADE CENTER BUILDING, INC.,
a corporation

By:  CB Richard Ellis, Inc.,
     a Delaware corporation,
     Its Authorized Agent

By: /s/ BARRY A KATZ
   ________________________________

Print Name: Barry A. Katz
           ________________________

Print Title: Managing Director
            _______________________<PAGE>
                                                                    EXHIBIT 10.6

                         [LETTERHEAD OF LEADERSONLINE]

                               October 12, 1999

Mr. James R. Quandt
17 Cherry Hills Drive
Coto de Caza, CA 92679

Dear Jim:

I am pleased to confirm LeadersOnline, Inc.'s offer of employment to you.

We are looking forward to your arrival and want to set forth our understanding:

1.    You will join our Irvine, California office as Chief Operating Officer at
      a monthly base salary of $20,833.33 (which is $250,000.00 annually),
      commencing on your first day of employment, which shall be October 14,
      1999, unless otherwise mutually agreed in writing. You will report to the
      President, LeadersOnline. Currently salaries are reviewed annually in
      November/December, so that your first salary review will be in
      November/December 2000.

2.    You will be eligible for a discretionary target bonus of up to 80% of your
      base salary. This bonus may exceed 80% of your base salary if your goals
      and objectives are significantly overachieved. Currently all bonuses are
      paid in December and the following March. You understand that except for
      the signing and minimum bonuses referred to below, all bonuses are
      discretionary and not earned until declared by the Board of Directors or
      appropriate committee of the Board of Directors, and that all bonuses,
      including the signing and minimum bonuses referred to below, are payable
      only if you are in our employ on the bonus payment dates.

      As we discussed, you will be eligible to receive the following bonuses:

      A.   Signing and Two-Year Commitment Bonus. You will receive a signing and
           -------------------------------------
           two-year commitment bonus of $250,000.00 to be paid as follows:

           (i)  $125,000.00 to be paid on your regular payroll date within 30
                days of your hire date; and

           (ii) $125,000.00 to be paid on your regular payroll date in October
                2000.

           These payments to you are made subject to the condition that you not
           resign your employment during the first two years. If you should
           resign from our firm within two years from your employment start
           date, you will repay the entire $250,000.00 signing and two-year
           commitment bonus within five (5) business days following your notice
           of resignation. You will be entitled to retain all interest or
           investment return realized from such payments. If you voluntarily
           resign within the first two years, you authorize us to deduct and/or
           offset the amount referred to in the foregoing sentence from any
           compensation or other sums that may be due to you at that time, and
           you will repay the balance, if any, after such deduction/offset of
           the $250,000.00 remaining due to us.

<PAGE>

Mr. James R. Quandt
October 12, 1999
Page Two

       B.   Bonus Year 2000 Minimum Bonus. You will receive a $350,000.00
            -----------------------------
            minimum bonus payable quarterly beginning with the first payment due
            February 1, 2000, provided that you are in our employ on the bonus
            payment date(s).

       C.   Bonus Year 2001 Minimum Bonus. You will receive a $350,000.00
            -----------------------------
            minimum bonus for the bonus year ending in December 31, 2001,
            payable when bonuses are paid for the bonus year ending in December
            31, 2001, provided that you are in our employ on the bonus payment
            date(s).

3.     You have agreed to purchase by November 30, 1999, $100,000.00 of Heidrick
       & Struggles, Inc. common stock on the market, and to send us a copy of
       your stockbrokers purchase confirmation evidencing such purchase. You
       have also agreed not to sell such shares during the term of this
       agreement.

4.     You will be eligible to participate in our benefit programs in accordance
       with the programs' written terms as set forth in plan documents. Copies
       of the booklets and Summary Plan Descriptions describing our group
       health, life/AD&D and long-term disability insurance, time-off benefits
       such as vacation, paid holidays, paid sick time, or short-term disability
       salary continuation, and Flexible Spending Account will be provided at a
       later date.

       LeadersOnline, Inc. intends to establish a 401(k) profit sharing plan
       sometime during the next year and possibly as early as January 2000. The
       specifics of the LeadersOnline plan, such as investment options, level of
       company contributions, etc., are yet to be determined.

5.     Our benefit programs, bonus programs, and policies are reviewed from time
       to time by the company's management, and our programs and policies may be
       modified, amended or completely terminated at any time.

6.     We will be requesting the Board of Directors of LeadersOnline, Inc. to
       establish a stock option program for LeadersOnline management and
       employees. You would participate in that program as a member of the
       senior management team. We will specifically request the Board to grant
       you stock options to purchase 2.5 percent of the company's common stock
       as of the date of the grant. Such options will be subject to vesting and
       forfeiture as determined by the Board.

7.     Pursuant to the Immigration and Nationality Act, our company is required
       to verify the identity and employment authorization of all new hires. In
       order to comply with this legal obligation, we must complete an
       Employment Eligibility Verification Form I-9 within three days of hire.
       We have enclosed a Form I-9 for your review. Please note that you will
       need to provide either (i) one document from "List A" or (ii) one
       document from "List B" and one document from "List C" of the form (see
       page two of the enclosed I-9 Form). Your initial and continuing
       employment will be subject to your having the ability to work legally in
       the United States. If you anticipate having difficulty completing the
       Form I-9 or producing the required documents, please advise me as soon as
       possible.
<PAGE>

Mr. James R. Quandt
October 12, 1999
Page Three

8.   If you accept our offer of employment, you will become an "employee at
     will" unless or until we may otherwise agree in writing. This gives both of
     us maximum flexibility and permits either of us to terminate employment and
     compensation at any time with or without cause or notice except for such
     period of notice as may be expressly provided in writing under written
     company employment policies in effect at the time of such termination.

     If your employment with our company is terminated by us for any reason
     other than cause, we intend to request that Heidrick & Struggles, Inc.
     provide you with an opportunity to join Heidrick & Struggles, Inc. as an
     executive search consultant, if you and Heidrick & Struggles, Inc. mutually
     agree.

9.   Two copies of an agreement relating to trade secrets, confidential
     information, clients, etc., are enclosed. We ask that all employees sign
     this agreement. Please review and sign both copies and return one to me for
     processing. Of course, please call me if you have any questions about this
     agreement.

10.  You hereby confirm that you have advised us that you have not signed any
     agreement that will, in any way, affect your joining our firm or the
     performance of your work for us. You agree that in performing your job
     duties hereunder, you will not utilize, rely upon or disclose any trade
     secrets or proprietary information belonging to others. You represent that
     you will be able to accomplish the anticipated duties of your job without
     the use of any such trade secrets or proprietary information.

11.  This letter of agreement, which sets forth our entire understanding, can be
     amended only in a writing, which is signed by you, the President of
     LeadersOnline, Inc., together with either the Treasurer or Secretary of the
     company. You specifically acknowledge that no promises or commitments have
     been made to you that are not set forth in this letter.

To acknowledge your acceptance of our offer of employment, please sign and
return to me one copy of this letter together with the agreement referred to in
Item 9 above.

                               Sincerely yours,

                               /s/ MICHAEL T. CHRISTY
                               ____________________________________
                               Michael T. Christy
                               President - LeadersOnline, Inc.

Enclosure

cc: Patrick S. Pittard
    A. Larry Elliott
    Donald M. Kilinski
    Richard D. Nelson

ACCEPTED:

/s/ JAMES R. QUANDT            10-14-99
________________________       _____________________________
James R. Quandt                Date

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