Document:

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                                                                    Exhibit 10.1

                             Lease Agreement Between
                                   Vision Bank
                                       And
                        Gulf Shores Investment Group, LLC

                                      Date
                                  March 1, 2002

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                                 LEASE AGREEMENT

                              (ORANGE BEACH BRANCH)

                                       FOR

                               BANKING FACILITIES

                                   VISION BANK
                              Gulf Shores, Alabama

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                                TABLE OF CONTENTS

1.    LEASED PREMISES.................................................     1

2.    LEASE TERM......................................................     1
      2.1   Continuance During Term...................................     1
      2.2   Renewal Options...........................................     1

3.    USE.............................................................     1
      3.1   Permitted Use.............................................     1
      3.2   Legal Use and Violation of Insurance Coverage.............     1
      3.3   Nuisance..................................................     2

4.    BASE RENTAL.....................................................     2

5.    COSTS...........................................................     2

6.    SERVICES TO BE FURNISHED BY LANDLORD............................     2
      6.1   Defined Services..........................................     2

7.    GRAPHICS........................................................     2

8.    CARE OF THE LEASED PREMISES BY TENANT...........................     2
      8.1   Condition of Leased Premises at Commencement; Notice
            to Landlord...............................................     2
      8.2   No Waste; Regulated Materials.............................     3

9.    REPAIRS AND ALTERATIONS BY TENANT...............................     3
      9.1   Repair by Tenant..........................................     3
      9.2   Compliance with Laws; Repair by Landlord..................     3
      9.3   Alterations or Additions by Tenant........................     3
      9.4   Property of Landlord......................................     4

10.   LAWS, REGULATIONS AND RULES.....................................     4

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      10.1  Applicable Ordinances.....................................     4
      10.2  Building Rules............................................     4

11.   ENTRY BY LANDLORD...............................................     4

12.   FURNITURE, FIXTURES AND PERSONAL PROPERTY.......................     4

13.   TAXES ON TENANT'S PROPERTY......................................     4

14.   ASSIGNMENT AND SUBLETTING.......................................     4
      14.1  No Assignment Without Consent.............................     5
      14.2  Assignment or Sublease....................................     5
      14.3  Further Assignment........................................     5
      14.4  Assigns and Sublessees....................................     5
      14.5  Transfers by Landlord.....................................     5

15.   MECHANIC'S LIEN.................................................     5
      15.1  Tenant Not to Permit Liens................................     5
      15.2  Rights of Landlord; Additional Rent.......................     5

16.   INSURANCE.......................................................     6
      16.1  Tenant....................................................     6
      16.2  Insurance -- General......................................     6
      16.3  Subrogation...............................................     6

17.   CASUALTY DAMAGE.................................................     6

18.   CONDEMNATION....................................................     6

19.   INDEMNITY.......................................................     7
      19.1  Indemnification by Tenant.................................     7
      19.2  Indemnification by Landlord...............................     7
      19.3  No Liability..............................................     7

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20.   DAMAGES FROM CERTAIN CAUSES.....................................     7

21.   EVENTS OF DEFAULT/REMEDIES......................................     7
      21.1  Events of Default by Tenant...............................     7
      21.2  Landlord's Remedies for Tenant Default....................     8
      21.3  Landlord's Remedies are Cumulative........................    10
      21.4  Obligation to Pay Rent is Independent; No Setoff..........    10
      21.5  Special Rights of Depository Institution Supervisory
            Authority.................................................    10

22.   PEACEFUL ENJOYMENT..............................................    10
      22.1  Rights of Tenant..........................................    10
      22.2  Limitation................................................    10

23.   HOLDING OVER....................................................    10
      23.1  Rental Amount.............................................    10
      23.2  No Extension of Term......................................    11

24.   SUBORDINATION...................................................    11
      24.1  Subject to Mortgages and Certain Leases...................    11
      24.2  Subordination of Lease Agreement..........................    11
      24.3  Approval of Lease Agreement by Landlord's Mortgagee.......    11
      24.4  Attorney-in-Fact..........................................    11
      24.5  Estoppel Certificates; Financial Certificates.............    11
      24.6  Attornment................................................    11
      24.7  Notice to Mortgagees......................................    11

25.   ATTORNEY'S FEES.................................................    12

26.   NO IMPLIED WAIVER...............................................    12
      26.1  No Waiver.................................................    12
      26.2  Partial Payment...........................................    12

27.   PERSONAL LIABILITY..............................................    12

28.   FORCE MAJEURE...................................................    12

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29.   RELATIONSHIP OF PARTIES.........................................    12

30.   MISCELLANEOUS...................................................    12
      30.1  Severability..............................................    12
      30.2  Recordation...............................................    13
      30.3  Governing Law.............................................    13
      30.4  Time of Performance.......................................    13
      30.5  Commissions...............................................    13
      30.6  Parking...................................................    13
      30.7  Effect of Delivery of this Lease Agreement................    13
      30.8  Section Headings..........................................    13
      30.9  Entire Agreement..........................................    13
      30.10 Successors and Assigns....................................    13
      30.11 Notices...................................................    13
      30.12 Gender....................................................    14
      30.13 Time of the Essence.......................................    14
      30.14 Building Name.............................................    14
      30.15 No Merger.................................................    14

31.   EXHIBITS AND SCHEDULES..........................................    14

                                       iv

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Exhibit A    Floor Plan of Leased Premises

                                        v

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STATE OF ALABAMA

COUNTY OF BALDWIN

                                 LEASE AGREEMENT

         This Lease Agreement made and entered into on this the 1st day of
March, 2002, between GULF SHORES INVESTMENT GROUP, LLC an Alabama limited
liability company (hereinafter called ("Landlord"), and VISION BANK, an Alabama
banking corporation (hereinafter called ("Tenant"). Tenant's address for
purposes hereof is P. O. Box 4649, Gulf Shores, Alabama 36547.

                              W I T N E S S E T H:

1.       LEASED PREMISES.

         Subject to and upon the terms, provisions and conditions hereinafter
set forth, and each in consideration of the duties, covenants and obligations of
the other hereunder, Landlord does hereby lease, demise and let to Tenant and
Tenant does hereby lease from Landlord those certain premises (the "Leased
Premises") in the building (the "Building") located at 25051 Canal Road, Orange
Beach, Alabama, such Leased Premises being approximately 6880 square feet of
Rentable Area, as reflected on the floor plan of such Leased Premises attached
hereto and made a part hereof as Exhibit A.

2.       LEASE TERM.

         2.1 Continuance During Term. This Lease Agreement shall continue in
force during a period beginning on the Commencement Date (hereafter defined) and
ending on midnight on the date which is nine (9) years after the first day of
the first calendar month immediately following the calendar month in which the
Commencement Date occurs (the "Lease Term"), unless this Lease Agreement is
sooner terminated or extended to a later date under any other term or provision
of this Lease Agreement. For purposes of this Lease, the term "Commencement
Date" shall mean the earlier of (a) the date the Leased Premises are ready for
occupancy by Tenant for the operation of its business, or (b) March 1, 2002.

         2.2 Renewal Options. Provided that no Event of Default has occurred
under this Lease and is continuing, Tenant shall have an option to renew this
Lease for three additional terms of three (3) year each on the same terms and
conditions as set forth herein, except that Landlord shall be entitled to raise
the Base Rental for such extension period, in its sole discretion, and Tenant
shall thereafter have sixty (60) days to agree or terminate following receipt of
notification from Landlord not less than ninety (90) days prior to expiration of
the original lease term.

3.       USE.

         3.1   Permitted Use. The Leased Premises are to be used and occupied
by Tenant solely for general office purposes, including but not limited to the
operation of a bank.

         3.2   Legal Use and Violation of Insurance Coverage. Tenant agrees not
to occupy or use, or permit any portion of the Leased Premises to be occupied or
used for any business or purpose that is unlawful, disreputable or deemed to be
extra-hazardous. Tenant will not keep any substance or carry on or permit any
operation which might emit offensive gas, smoke, fumes, dust, odors, waste
products or conditions into other portions of the Building, or use any apparatus
which might make undue noise or set up vibrations in the Building. Tenant will
not permit anything to be done which would increase the fire and extended
coverage insurance rate on the Building or contents, and if there is any
increase in such rates by reason of acts of Tenant, then Tenant agrees to pay
such increase promptly upon demand therefor by Landlord.

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         3.3  Nuisance. Tenant agrees to conduct its business and control its
agents, employees, invitees and visitors in such manner as not to create any
nuisance, or interfere with, annoy or disturb any other tenant or Landlord in
the operation of the Building.

4.       BASE RENTAL.

         Tenant hereby agrees to pay a base annual rental (herein called the
"Base Rental") of $123,840 at the rate of $18.00 per square foot of Rentable
Area. The Tenant shall also pay, as additional rent, all such other sums of
money as shall become due and payable by Tenant to Landlord under this Lease
Agreement. The Base Rental shall be due and payable in twelve (12) equal
installments of $10,320 on the first day of each calendar month during the
initial term and any extensions or renewals thereof, and Tenant hereby agrees to
pay such rent to Landlord monthly in advance without demand and without any
reduction, abatement, counterclaim or setoff, at such address as may be
designated by Landlord. The "Base Rental," and any other additional rental shall
be collectively referred to as "Rent" or "rent." If the term of this Lease
Agreement as heretofore established commences on other than the first day of a
month or terminates on other than the last day of a month, then the Rent
provided for herein for such month or months shall be prorated and the
installment or installments so prorated shall be paid in advance. The Base
Rental shall be adjusted twice during the Lease Term:(1) upon the first day of
the fourth year of the Lease Term; and, (ii) upon the first day of the seventh
year of the Lease Term (collectively, the "Adjustment Dates"). Upon each of the
Adjustment Dates, the Base Rental shall be adjusted to a figure determined to be
"market rent" by a MAI-designated appraiser. The Tenant shall bear the expense
of such appraiser. All past due installments of rent shall bear interest at the
lesser of (i) the maximum rate permitted by applicable law, or (ii) three (3)
percentage points above the Prime Rate (hereinafter defined), from the date due
until paid. The term "Prime Rate" for purposes of this Lease Agreement, shall
mean the rate as published in the WALL STREET JOURNAL on the date or dates on
which reference to the Prime Rate is being made (or in the event no such
quotation is available on such date, as quoted on the day most immediately
preceding the date of determination on which such a quotation was available),
and shall not be subject to adjustment, but shall in no event exceed the maximum
rate provided by applicable law.

5.       COSTS.

         Tenant shall bear the expense of all insurance on the Property and
Building, common area expenses, and all real estate taxes. Tenant agrees to pay
Landlord within fifteen (15) days of receipt of invoice from Landlord or direct
billing for any charges not directly invoiced to Tenant. Any payments advanced
by Landlord shall be fully reimbursed by Tenant. Tenant acknowledges this is a
triple net lease.

6.       SERVICES TO BE FURNISHED BY LANDLORD.

         6.1  Defined Services.  Tenant agrees no services are to be provided
by Landlord.

7.       GRAPHICS.

         Landlord shall provide and install, at Tenant's cost, all letters or
numerals at doors to the Leased Premises. All such letters and numerals shall be
in the standard graphics for the Building, and no others shall be used or
permitted on the Leased Premises without Landlord's prior written consent. No
signs, symbol or identifying mark shall be put upon the Building, or in the
halls, elevators, staircases, entrances, parking areas or upon the doors or
walls, without prior written consent of Landlord.

8.       CARE OF THE LEASED PREMISES BY TENANT.

         8.1  Condition of Leased Premises at Commencement; Notice to Landlord.
The taking of possession of the Leased Premises by Tenant shall be conclusive
evidence as against Tenant (a) that it accepts the Leased Premises as suitable
for the purposes for which same are leased, subject to "punch list" items to be
installed or repaired by Landlord contained in a punch list which must be
submitted, if at all, to Landlord by Tenant within ten (10) days after the
Commencement Date; (b) that it accepts the Property as being in a good and
satisfactory condition; and (c) that Tenant waives any defects in the Leased
Premises and its appurtenances and in all other parts of the Property. Any
subsequent modifications to the Leased Premises required by governmental laws,
rules or

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regulations, including without limitation modifications required under the
Americans with Disabilities Act of 1990 and similar legislation, shall be the
sole responsibility of Tenant. Landlord shall not be liable to Tenant or any of
its agents, employees, licenses, servants or invitees for any injury or damage
to person or property due to the condition or design of or any defect in the
Building or its mechanical systems and equipment which may exist or occur, or
due to the leaking of gas, water, sewer, or steam unless such injury or damage
is due to the gross negligence or willful misconduct of Landlord (but not
including the negligence or willful misconduct of Landlord's contractors); and
Tenant, with respect to itself and its agents, employees, licensees, servants
and invitees shall have the responsibility for all risks of injury or damage to
person or property, either proximate or remote, by reason of the condition of
the Leased Premises or the Property except for injury or damage caused by the
gross negligence or willful misconduct of Landlord. Except as specifically set
forth herein, no promises of the Landlord to alter, remodel, repair or improve
the Leased Premises or the Building and no representations respecting the
condition of the Leased Premises or the Building have been made by Landlord to
Tenant. At all times during the Lease Term, including any extensions thereof,
Tenant agrees to give Landlord prompt notice of any apparent defective condition
in or about the Leased Premises.

         8.2  No Waste; Regulated Materials. Tenant shall not commit waste or
allow any waste to be committed on any portion of the Leased Premises, and at
the termination of this Lease Agreement, Tenant shall deliver the Leased
Premises to Landlord in as good condition as at the date of the commencement of
the term of this Lease Agreement, ordinary wear and use excepted. Tenant shall
not treat, store, handle, generate, locate on, discharge from, or dispose on the
Leased Premises or the Building any materials regulated, controlled, limited or
restricted by governmental laws, rules, regulations or ordinances.

9.       REPAIRS AND ALTERATIONS BY TENANT.

         9.1  Repair by Tenant. Tenant shall, at Tenant's own cost and expense,
repair any damage done to the Building, or any part thereof, including
replacement of damaged portions or items, caused by Tenant or Tenant's agents,
guests, employees, invitees, licensees, customers or visitors, and Tenant
covenants and agrees to make all such repairs as may be required to restore the
Building to as good a condition as it was in prior to such damage. Tenant
further agrees to maintain and keep the interior of the Leased Premises in good
repair and condition at Tenant's expense. Repair and replacement parts,
materials and equipment shall be of a quality equivalent to those initially
installed in the Building or Leased Premises.

         9.2  Compliance with Laws; Repair by Landlord. All such work or repairs
by Tenant shall be effected in compliance with all applicable laws; provided,
however, if Tenant fails to make such repairs or replacements promptly, Landlord
may, at its option, make repairs or replacements, and Tenant shall pay to
Landlord the cost thereof, within ten (10) days of Landlord's demand therefor,
as additional rent.

         9.3  Alterations or Additions by Tenant. Tenant agrees with Landlord
not to make or allow to be made any alterations to the Leased Premises except in
compliance with the provisions of this Section.

         (a)  Tenant shall be entitled to make minor alterations such as
              placing items on the walls of the Leased Premises so long as
              once they are removed, Tenant repairs any damage caused
              thereby. Any and all such alterations, physical additions, or
              improvements, when made to the Leased Premises by Tenant,
              shall at once become the property of Landlord and shall be
              surrendered to Landlord upon the termination of this Lease by
              lapse of time or otherwise; provided, however, this paragraph
              shall not apply to movable equipment or furniture owned by
              Tenant. If, however, Landlord so requests in writing, Tenant
              will, immediately prior to termination of this Lease, remove
              any and all physical additions to the Leased Premises,
              including partitions, and will repair any damage caused by
              such removal, all at Tenant's cost.

         (b)  If the Tenant performs any construction work on the Leased
              Premises, Tenant's work will be performed with materials of
              good quality. Tenant shall not do any construction work or
              alterations, nor shall Tenant install any equipment without
              first obtaining Landlord's written approval of the plans and
              specifications therefor. The approval of the Landlord of
              such plans and specifications shall not constitute the
              assumption of any liability on the part of the Landlord for

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              their accuracy or their conformity with requirements of any
              building code, or other municipal or governmental regulation
              or ordinance, and Tenant shall be solely responsible for
              such plans. Tenant shall be responsible for all necessary
              permits, governmental or otherwise, to include special use
              permits, signage permits, etc.

         9.4  Property of Landlord. Any and all alterations to the Leased
Premises shall become the property of Landlord upon termination of this Lease
Agreement (except for movable equipment or furniture owned by Tenant).

10.      LAWS, REGULATIONS AND RULES.

         10.1 Applicable Ordinances. Tenant shall comply with all applicable
laws, ordinances, rules and regulations of any governmental entity, agency or
authority having jurisdiction over the Leased Premises or Tenant's use of the
Leased Premises.

         10.2 Building Rules. Tenant shall comply with the Building Rules
adopted by Landlord and set forth in Schedule 2 hereto, as they may be amended
by Landlord from time to time (the "Building Rules"), and will cause all of its
agents, employees, invitees and visitors to do so. All changes to the Building
Rules will be furnished by Landlord to Tenant in writing.

11.      ENTRY BY LANDLORD.

         Tenant shall permit Landlord or its agents or representatives to enter
into and upon any part of the Leased Premises upon prior notice and at all
reasonable hours (and in emergencies at all times) to inspect the condition,
occupancy or use, to show the Leased Premises to prospective purchasers,
mortgagees, tenants or insurers, or to clean or make repairs, alterations or
additions. Tenant shall not be entitled to any abatement or reduction of rent by
reason of this right of entry.

12.      FURNITURE, FIXTURES AND PERSONAL PROPERTY.

         Tenant may remove its trade fixtures, office supplies and movable
office furniture and equipment not attached to the Building provided: (a) such
removal is made within (30) days after the termination of the Term of this
Lease; (b) Tenant is not in default of any obligation or covenant under this
Lease at the time of such removal at Tenant's sole cost and expense. All other
property at the Leased Premises and alterations and additions to the Leased
Premises (including wall-to-wall carpet, paneling or other wall covering) and
any other article attached or affixed to the floor, wall or ceiling of the
Leased Premises shall become the property of Landlord and shall remain upon and
be surrendered with the Leased Premises as a part thereof at the termination of
this Lease, by lapse of time or otherwise, Tenant hereby waiving all rights to
any payment or compensation therefor. If, however, Landlord so requests in
writing, Tenant will, immediately prior to termination of this Lease, remove any
and all alterations, additions, fixtures, equipment and property placed or
installed by it in the Leased premises, and not permanently affixed thereto, and
will repair any damage caused by such removal, all at Tenant's cost.

13.      TAXES ON TENANT'S PROPERTY.

         Tenant shall be liable for all taxes levied or assessed against
personal property, furniture or fixtures placed by Tenant in the Leased
Premises. If any such taxes for which Tenant is liable are levied or assessed
against Landlord or Landlord's property and if Landlord elects to pay the same
or if the assessed value of Landlord's property is increased by inclusion of
personal property, furniture or fixtures placed by Tenant in the Leased
Premises, and Landlord elects to pay the taxes based on such increase, then
Landlord shall notify Tenant, and Tenant shall pay to Landlord upon demand that
part of such taxes for which Tenant is liable hereunder.

14.      ASSIGNMENT AND SUBLETTING.

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         14.1 No Assignment Without Consent. Tenant shall not assign, sublease,
transfer, pledge, or encumber this Lease Agreement or any interest therein
without Landlord's prior written consent. Any attempted assignment, sublease or
other transfer or encumbrance by Tenant in violation of the terms and covenants
of this paragraph shall be void.

         14.2 Assignment or Sublease. In the event Tenant shall desire to assign
this Lease Agreement or sublet the Leased Premises or any part thereof, Tenant
shall give Landlord written notice of such desire, along with the name of the
proposed assignee or sublessee and a copy of the proposed assignment or sublease
instrument, at least ninety (90) days in advance of the date on which Tenant
desires to make such assignment or sublease. Landlord shall then have a period
of thirty (30) days following receipt of such notice within which to notify
Tenant in writing that Landlord elects either (i) to permit Tenant to assign or
sublet such space, (ii) to refuse such request to assign or sublease such space
(which refusal may be made by Landlord without regard to any commercially
reasonable standard), or (iii) to terminate this Lease Agreement as to the space
so affected as of the date so specified by Tenant in which event Tenant will be
relieved of all obligations arising thereafter as to such space. Any rent or
other payments otherwise due Tenant as a result of assignment or subletting of
all or any portion of the Leased Premises in excess of the rent due Landlord by
Tenant on such space hereunder shall be payable as additional rent to Landlord
by Tenant promptly upon receipt by Tenant, and Tenant hereby assigns all rights
it might have or ever acquire in any such proceeds to Landlord. If Landlord
should fail to notify Tenant in writing of such election within said thirty (30)
day period, Landlord shall be deemed to have elected option (i) above. No
assignment or subletting by Tenant shall relieve Tenant of any obligation under
this Lease Agreement. Any consent of Landlord hereunder is subject to receipt by
Landlord of an executed copy of the sublease or assignment.

         14.3 Further Assignment.  Notwithstanding Landlord's consent on any one
occasion, the rights of Landlord set forth in Section 14.2 shall apply to any
further subletting or assignment.

         14.4 Assigns and Sublessees.  The provisions of this Section shall be
binding on any permitted  assigns or sublessees of Tenant.

         14.5 Transfers by Landlord. Landlord shall have the right to transfer
and assign, in whole or in part, all its rights and obligations hereunder and in
the Building and the Leased Premises referred to herein, and in such event and
upon such transfer Landlord shall be released from any further obligations
hereunder, and Tenant agrees to look solely to such successor in interest of
Landlord for the performance of such obligations.

15.      MECHANIC'S LIEN.

         15.1 Tenant Not to Permit Liens. Tenant will not create or permit to be
created or to remain, and will discharge, any lien (including, but not limited
to, the liens of mechanics, laborers, artisans or materialmen for work or
materials alleged to be done, furnished or delivered in connection with the
Leased Premises), encumbrance, or other charge upon the Leased Premises or any
part thereof, upon Landlord's interest therein, or upon Tenants leasehold
interest; provided, that Tenant shall not be required to discharge any such
liens, encumbrances or charges as may be placed upon the Leased Premises or
Building by the act of anyone other than Tenant or Tenant's agents, employees,
servants or contractors. Provided that any Landlord's Mortgagee consents thereto
in writing and Tenant complies with all requirements of such Landlord's
Mortgagee with respect thereto and provided further, Tenant furnishes security
reasonably acceptable to Landlord and any such Landlord's Mortgagee, Tenant
shall have the right to contest, in good faith by appropriate legal proceedings,
the validity or amount of any mechanics', laborers', artisans' or materialmen's
lien or other claimed lien. On final determination of such lien or such claim
for lien, Tenant will immediately pay any judgement rendered with all proper
costs and charges and shall have such lien released or judgement satisfied at
Tenant's sole expense. Tenant will pay, protect and indemnify Landlord, within
ten (10) days after demand therefor, from and against all liabilities, losses,
claims, damages, costs and expenses, including reasonable attorneys' fees,
incurred by Landlord by reasons of the filing of any lien and/or removal of
same.

         15.2 Rights of Landlord; Additional Rent. If any such lien is claimed
against the Leased Premises, then, in addition to any other right or remedy of
Landlord, Landlord may, but shall not be obligated to, discharge the

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same. Any amount paid by Landlord for such purposes shall be paid by Tenant to
Landlord as additional rent within ten (10) days of Landlord's demand therefor.

16.      INSURANCE.

         16.1 Tenant. Tenant shall, during the Term and at its sole expense,
obtain and keep in force, with Tenant, Landlord, and the mortgagees of Landlord,
named as insureds, as their respective interests may appear, (i) comprehensive
general liability insurance coverage, personal injury, bodily injury, broad form
property damage, operations hazard, owner's protective coverage, contractual
liability and products and completed operations liability in limits not less
than $1,000,000.00 inclusive, and (ii) fire and extended coverage insurance for
the Building in or on the Leased Premises for the full replacement value
thereof.

         16.2 Insurance -- General. All policies of insurance to be provided or
obtained by Tenant under this Lease Agreement shall (i) name Landlord and
mortgagees of Landlord as additional insureds, and (ii) provide for notice to
Landlord at least thirty (30) days before any cancellation or termination of
said insurance. Tenant shall, upon request of Landlord, furnish Landlord with
certificates of insurance evidencing Tenant's compliance with the provisions of
this Section.

         16.3 Subrogation. Anything in this Lease to the contrary
notwithstanding, Landlord and Tenant each hereby waives (to the extent that the
party sustaining such loss is compensated by insurance proceeds) any and all
rights of recovery, claim, action or cause of action, against the other, its
agents, officers, or employees, for any loss or damage that may occur to the
Leased Premises, or any improvements thereto, or the Property, or any personal
property of such party therein, by reason of fire, the elements, or any other
cause which would be insured against under the terms of the fire and extended
coverage insurance policies referred to above, regardless of cause or origin,
including negligence of the other party hereto, its agents, officers or
employees, and covenants that no insurer shall hold any right of subrogation
against such other party, and to procure a waiver of subrogation on the part of
each of their insurers by an endorsement to all insurance policies whereby an
insurer recognizes the agreements made by the Landlord and Tenant in this
Section; provided, however, this Section shall be inapplicable if it would have
the effect, but only to the extent that it would have the effect of invalidating
any insurance coverage of Landlord or Tenant.

17.      CASUALTY DAMAGE.

         If the Leased Premises or any part thereof shall be damaged by fire or
other casualty, Tenant shall give prompt written notice thereof to Landlord. In
case the Building shall be so damaged that the substantial alteration or
reconstruction of the Building shall, in Landlord's sole opinion, be required
(whether or not the Leased Premises shall have been damaged by such casualty) or
in the event any mortgagee of Landlord's should require that the insurance
proceeds payable as a result of a casualty be applied to the payment of the
mortgage debt or in the event of any material uninsured loss to the Building,
Landlord may, at its option, terminate this Lease Agreement by notifying Tenant
in writing of such termination within ninety (90) days after the date of such
damage. If Landlord does not thus elect to terminate this Lease Agreement,
Landlord shall commence and proceed with reasonable diligence to restore the
Building to substantially the same condition in which it was immediately prior
to the happening of the casualty, except that Landlord's obligation to restore
shall not exceed the insurance proceeds actually received by Landlord as a
result of the casualty.

18.      CONDEMNATION.

         If the whole or substantially the whole of the Building or the Leased
Premises should be taken for any public or quasi-public use, by right of eminent
domain or otherwise or should be sold in lieu of condemnation, then this Lease
Agreement shall terminate as of the date when physical possession of the
Building or the Leased Premises is taken by the condemning authority. If less
than the whole or substantially the whole of the Building or the Leased Premises
is thus taken or sold, Landlord (whether or not the Leased Premises are affected
thereby) may terminate this Lease Agreement by giving written notice thereof to
Tenant, in which event this Lease Agreement shall terminate as of the date when
physical possession of such portion of the Building or Leased Premises is taken
by the condemning authority. If this Lease Agreement is not so terminated upon
any such partial taking or sale, the rent payable hereunder shall be diminished
by an equitable amount based on the portion of the Leased Premises taken, if

                                     Page 6

<PAGE>

any, and Landlord shall, to the extent Landlord deems feasible, restore the
Building and the Leased Premises to substantially their former condition, but in
no event shall Landlord be required to spend for such work an amount in excess
of the amount received by Landlord as compensation for such damage. All amounts
awarded upon a taking of any part or all of the Building or the Leased Premises
shall belong to Landlord, and Tenant shall not be entitled to and expressly
waives all claim to any such compensation, including any award or ascertainment
for the value of Tenant's leasehold estate, which value is hereby assigned to
the Landlord. If this Lease should be terminated under any provision of this
Section, Rent shall be payable up to the date that possession is taken by the
taking authority, and Landlord will refund to Tenant any prepaid, unaccrued Rent
less any sum then owing by Tenant to Landlord.

19.      INDEMNITY.

         19.1 Indemnification by Tenant. Tenant will indemnify Landlord for, and
hold harmless Landlord from and against (a) all fines, suits, claims, demands,
liabilities, and actions (including costs and expenses of defending against all
such actions) resulting or alleged to result from any breach, violation or
nonperformance of any covenant or condition hereof by Tenant, and (b) all
claims, demands, actions, damages, loss, cost, liabilities, expenses and
judgments suffered by, recovered from or asserted against Landlord on account of
injury or damage to person or property to the extent that any such damage or
injury may be incident to, arise out of, or be caused by an act, omission,
negligence or misconduct on the part of Tenant or any of its agents, servants,
employees, contractors, patrons, guests, licensees or invitees or of any other
person entering upon the Leased Premises under or with the express or implied
invitation or permission of Tenant or when any such injury or damage is the
result, proximate or remote, of the violation by Tenant or any of it agents,
servants, employees, contractors, patrons, guests, licensees or invitees of any
law, ordinance or governmental order of any kind or of any of the Rules and
Regulations included in this Lease (as such Rules and Regulations may hereafter
at any time or from time to time be amended or supplemented), or when any such
injury or damage may in any other way arise from or out of the occupancy or use
by Tenant, its agents, servants, employees, contractors, patrons, guests,
licensees or invitees of the Leased Premises.

         19.2 Indemnification by Landlord. Landlord will indemnify Tenant for,
and hold harmless Tenant from and against (a) all fines, suits, claims, demands,
liabilities, and actions (including costs and expenses of defending against all
such actions) resulting or alleged to result from any breach, violation or
nonperformance of any covenant or condition hereof by Landlord, and (b) all
claims, demands, actions, damages, loss, cost, liabilities, expenses and
judgments suffered by, recovered from or asserted against Tenant on account of
injury or damage to person or property to the extent that any such damage or
injury may be incident to, arise out of, or be caused by an act, omission,
negligence or misconduct on the part of Landlord or any of its agents, servants,
employees or contractors, or when any such injury or damage is the result,
proximate or remote, of the violation by Landlord or any of it agents, servants,
employees or contractors of any law, ordinance or governmental order of any
kind.

         19.3 No Liability. Neither Landlord nor Tenant shall be responsible or
liable to the other, their respective officers, employees, agents, contractors,
subcontractors, customers or invitees, for bodily injury, death or property
damage to the extent occasioned by the acts or omissions of any other tenant in
the Building or such tenant's officers, employees, agents, contractors,
subcontractors, customers or invitees within the Building.

20.      DAMAGES FROM CERTAIN CAUSES.

         Landlord shall not be liable to Tenant for any loss or damage to any
property, or injury to or death of any person, occasioned by theft, fire, act of
God or the public enemy, injunction, riot, strike, insurrection, war,
requisition or order of governmental body or authority or any other cause beyond
the control of Landlord.

21.      EVENTS OF DEFAULT/REMEDIES.

         21.1 Events of Default by Tenant. In the event of any failure of Tenant
to pay any rental or other sums of money when due hereunder; or any failure to
observe or perform any other of the terms, conditions or covenants of this
Lease, including but not limited to the Building Rules, to be observed or
performed by Tenant for more than ten (10) days after written notice thereof
shall have been given to Tenant; or if the Tenant's leasehold interest shall be
taken on execution or other process of law against Tenant; or if Tenant or an
agent of Tenant shall falsify any report required to be furnished to Landlord
pursuant to the terms of this Lease; or if Tenant shall fail to

                                     Page 7

<PAGE>

accept the Leased Premises, or to promptly move into, take possession of, and
operate its business on the Leased Premises when the Leased Premises are
substantially complete; or if Tenant ceases to do business in or abandons any
substantial portion of the Leased Premises; or if Tenant should at any time
during the continuance of the Lease remove or attempt to remove the goods,
furniture, effects, improvements and personal property brought thereon out of or
from the Leased Premises (except in the ordinary course of business), without
having paid in full all rent and other applicable charges which shall become due
during the term of this Lease; or, if Tenant or any Guarantor of this Lease
shall become bankrupt or insolvent, or file a petition in bankruptcy or
insolvency or for reorganization or for the appointment of a receiver or trustee
of all or a portion of Tenant's or any Guarantor's property; or if a petition or
answer proposing the adjudication of Tenant or any Guarantor as a bankrupt or
its reorganization under any present or future federal or state bankruptcy or
similar law shall be filed in any court and such petition or answer shall not be
discharged or denied within sixty (60) days after the filing thereof; or if
Tenant or any Guarantor makes an assignment for the benefit of creditors, or
petitions for or enters into an arrangement, or suffers this Lease to be taken
under any writ of execution, then, in any of such events, Tenant shall be deemed
in breach and default of this Lease and Landlord, in its discretion and at its
election, and in addition to all other rights and remedies it may have in law or
in equity, shall also be entitled to those rights and remedies enumerated below.

         21.2     Landlord's Remedies for Tenant Default.  Subject to Section
21.5 hereof:

         (a)      In the event of a default by Tenant, the Landlord, at its
                  option (without further notice or demand of any kind to Tenant
                  or any other person except as hereinafter expressly provided)
                  shall have, in addition to all the legal and equitable
                  remedies, and the remedies described elsewhere in this Lease,
                  the following described remedies:

                  (i) Landlord shall have the right to proceed by attachment,
                  suit or otherwise to collect any delinquent rent or other
                  amounts due Landlord hereunder. In the event it is necessary
                  for Landlord to bring suit for rental payments or other
                  charges as they accrue or in order to collect any damages,
                  Landlord shall have the right to allow such rental or
                  deficiencies to accumulate and to bring an action on several
                  or all of the deficiencies at one time. Any such suit shall
                  not prejudice in any way the right of Landlord to bring a
                  similar action for subsequent rental or damage deficiencies.

                  (ii) Landlord may elect to accelerate the rent due under this
                  Lease by giving notice of such election to Tenant and, in such
                  event, Tenant shall pay at once to Landlord a sum of money
                  equal to the rentals and other charges to be paid by Tenant to
                  Landlord for the balance of the stated term of this Lease, and
                  Landlord shall have the right to proceed by attachment, suit
                  or otherwise to collect such sum or other amounts due Landlord
                  hereunder.

                  (iii) Landlord may elect to terminate this Lease by written
                  notice to Tenant specifying the date the Lease will terminate,
                  which shall not be less than three (3) days after the giving
                  of such notice, and upon such date this Lease and Lease Term
                  shall end. Landlord may immediately repossess the Leased
                  Premises and Tenant shall pay at once to Landlord as damages
                  a sum of money equal to the rentals and other charges to be
                  paid by Tenant to Landlord for the balance of the stated
                  term of this Lease, and Landlord shall have the right to
                  proceed by attachment, suit or otherwise to collect such sum
                  or other amounts due Landlord hereunder.

                  (iv) Landlord may elect to terminate Tenant's right of
                  possession without terminating this Lease, in which event
                  Tenant agrees to surrender possession and vacate the Leased
                  Premises immediately and deliver the possession to Landlord,
                  and Tenant hereby grants Landlord full and free license to
                  enter in and upon the Leased Premises or any part thereof, and
                  to expel or remove Tenant or any other person or party who may
                  be occupying or within the Leased Premises or any part
                  thereof, and remove any and all property therefrom. Such
                  property may be removed and stored in a public warehouse or
                  elsewhere at the cost of and for the account of Tenant without
                  terminating this Lease or releasing Tenant in whole or in part
                  from Tenant's obligations to pay rent and other charges and
                  perform any of the covenants, conditions and agreements to be
                  performed by Tenant as provided in this Lease and without
                  being deemed in any manner guilty of trespass, eviction or
                  forcible entry or detainer, and without becoming liable for
                  any loss or damage which may be occasioned

                                     Page 8

<PAGE>

                  thereby, and without relinquishing Landlord's rights as
                  herein provided. If Landlord re-enters the Leased Premises
                  without terminating this Lease, then Landlord may relet the
                  Leased Premises or any part or parts thereof, either in the
                  name of Landlord, Tenant or otherwise, for a term which may
                  at Landlord's option be less than or exceed the period which
                  would otherwise have constituted the balance of the Lease
                  Term and upon such other terms and conditions as Landlord,
                  in its sole discretion, may deem advisable. Tenant or the
                  legal representative of Tenant shall pay Landlord for each
                  month of the period which would otherwise have constituted
                  the balance of the Lease Term, any deficiency between (i)
                  one monthly installment of Rent that would have been payable
                  for the month in question but for such re-entry or
                  termination, and all charges that otherwise would have
                  become due, and (ii) the net amount, if any, of the rents
                  collected on account of the lease or leases of the Leased
                  Premises for each month of the period which would otherwise
                  have constituted the balance of the Lease Term. The refusal
                  or failure of Landlord to relet the Leased Premises or any
                  part or parts thereof shall not release or affect Tenant's
                  liability for damages; provided, however, that Landlord
                  shall use reasonable efforts to relet the Leased Premises.
                  There shall be added to the said deficiency such expenses as
                  Landlord may incur in connection with any reletting (such as
                  court costs, reasonable attorneys' fees and disbursement,
                  brokerage and expenses for putting and keeping the Leased
                  Premises in good order or for preparing the same for
                  reletting). Any deficiency shall be paid in monthly
                  installments by Tenant on the rent day specified in this
                  Lease and any suit brought to collect the amount of the
                  deficiency for any month shall not prejudice in any way the
                  rights of Landlord to collect the deficiency for any
                  subsequent month by a similar proceeding. No such re-entry
                  or taking possession of the Leased Premises by Landlord
                  shall be construed as an election on its part to terminate
                  this Lease unless a written notice of such termination be
                  given to Tenant or unless the termination thereof be decreed
                  by a court of competent jurisdiction. Any amount collected
                  by Landlord from subsequent tenants in excess of that
                  provided for in this Lease for the same rental period shall
                  be credited to Tenant in reduction of Tenant's liability for
                  any rental period in which the amount collected by Landlord
                  shall be less than that provided for by this Lease, but
                  Tenant shall only be entitled to receive any such excess
                  rentals at the end of the Lease Term and without interest.
                  In all events Landlord may terminate the Lease for such
                  breach at any time thereafter and after such termination
                  Tenant shall not be entitled to any claim whatsoever, of any
                  kind or nature, for any excess rental that may be collected
                  by Landlord. The reletting of the Leased Premises beyond the
                  date originally fixed for expiration of the term of the
                  Lease shall not be deemed to release Tenant from his
                  obligations hereunder. An election to re-enter the Leased
                  Premises (without terminating the Lease) and the reletting
                  or not reletting of the Leased Premises shall not thereafter
                  prevent Landlord from electing to terminate the Lease for
                  such previous breach. In the event it is necessary for
                  Landlord to bring suit for such rental payments or other
                  charges as they accrue or in order to collect any damages,
                  Landlord shall have the right to allow such rental or
                  deficiencies to accumulate and to bring an action on several
                  or all of the deficiencies at one time. Any such suit
                  shall not prejudice in any way the right of Landlord to bring
                  a similar action for subsequent rental or damage deficiencies.

         (b)      For purposes of computing the rentals and other charges due in
                  the event that Landlord elects to accelerate the rents
                  hereunder, or elects to terminate this Lease, the rental
                  payments payable to Landlord under this Lease shall include
                  the monthly Rent and other charges due monthly hereunder. In
                  addition, damages shall include interest on past due rentals
                  and other charges and Landlord's court costs and reasonable
                  attorneys fees incurred in connection with the termination of
                  this Lease because of Tenant's breach.

         (c)      If Tenant defaults in any of its obligations hereunder, then
                  Landlord, to the extent not otherwise recovered, shall be
                  entitled to recover its reasonable attorneys' fees and court
                  costs incurred by reason of Tenant's default. If Tenant shall
                  default under any of the terms and provisions of this Lease on
                  its part to be performed or observed, Landlord shall be
                  entitled to interest on any monies expended on behalf of
                  Tenant and any costs or expenses incurred by Landlord, at a
                  rate per annum equal to the interest rate set forth in Section
                  4.

                                     Page 9

<PAGE>

          (d)     In addition to the above-mentioned remedies, and in no way
                  limiting, excluding or waiving any remedy available to
                  Landlord as a result of a default by Tenant, Landlord shall be
                  entitled, upon Tenant's default, to sue for and recover from
                  Tenant an amount equal to the sum of all Base Rental
                  abatements, tenant finish allowances and all other concessions
                  received by Tenant prior to such event of default
                  (collectively, "Tenant Concessions"); and any Tenant
                  Concessions that would benefit Tenant after the occurrence of
                  an event of default shall automatically be deemed terminated
                  as of the date of the occurrence of such event of default.

         21.3     Landlord's Remedies are Cumulative. All the remedies of
Landlord in the event of Tenant default shall be cumulative and, in addition,
Landlord may pursue any other remedies permitted by law or in equity.
Forbearance by Landlord to enforce one or more of the remedies upon an event of
default shall not constitute a waiver of such default.

         21.4     Obligation to Pay Rent is Independent; No Setoff. The
obligation of Tenant to pay all Rent provided to be paid by Tenant and the
obligations of Tenant to perform Tenant's other covenants and duties hereunder
constitute independent and unconditional obligations to be performed at all
times provided for hereunder, save and except only when an abatement thereof or
reduction therein is herein above expressly provided for and not otherwise.
Tenant waives and relinquishes all rights which Tenant might have to claim any
nature of lien against, withhold, deduct or offset against, any Rent and other
sums provided hereunder to be paid Landlord by Tenant.

         21.5     Special Rights of Depository Institution Supervisory
Authority. Notwithstanding any other provisions contained in this Lease, in the
event (a) Tenant or its successors or assignees shall become insolvent or
bankrupt, or if it or their interests under this Lease shall be levied upon or
sold under execution or other legal process, or (b) the depository institution
then operating on the Leased Premises is closed, or is taken over by any
depository institution supervisory authority ("Authority"), Landlord may, in
either such event, terminate this Lease only with the concurrence of any
Receiver or Liquidator appointed by such Authority; provided, that in the event
this Lease is terminated by the Receiver or Liquidator, the maximum claim of
Lessor for rent, damages, or indemnity for injury resulting from the
termination, rejection, or abandonment of the unexpired Lease shall by law in no
event be in an amount greater than all accrued and unpaid rent to the date of
termination.

22.      PEACEFUL ENJOYMENT.

         22.1     Rights of Tenant. Subject to the other terms hereof including,
without limitation, the provisions of Section 27.1, Tenant shall and may
peacefully enjoy the Leased Premises against all persons claiming by, through or
under Landlord, provided that Tenant pays the rent and other sums herein recited
to be paid by Tenant and performs all of Tenant's covenants and agreements in
this Lease Agreement.

         22.2     Limitation. The foregoing covenant and any and all other
covenants of the Landlord shall be binding upon Landlord and its successors only
with respect to breaches occurring during its or their respective periods of
ownership of the Leased Premises. Tenant specifically acknowledges that Landlord
will make repairs, alterations and improvements to the Building from time to
time ("Building Work"), and that such Building Work may create noise audible
within the Leased Premises and dust and noise within the common areas of the
Building. Tenant agrees that Landlord shall have the right from time to time to
conduct such Building work, and that such noise and dust related to the Building
Work shall not be deemed or claimed by Tenant to be a nuisance, a breach or
disturbance of the Tenant's right of peaceful and quiet enjoyment, a breach of
any of the Landlord's obligations hereunder, or any sort of constructive
eviction.

23.      HOLDING OVER.

         23.1     Rental Amount. If Tenant holds over without Landlord's written
consent after expiration or other termination of this Lease Agreement, or if
Tenant continues to occupy the Leased Premises after termination of Tenant's
right of possession, Tenant shall throughout the entire holdover period pay rent
equal to twice the Rent that would have been applicable had the term of this
Lease Agreement continued through the period of such holding over by Tenant.

                                    Page 10

         23.2     No Extension of Term. No possession by Tenant after the
expiration of the term of this Lease Agreement shall be construed to extend the
term of this Lease Agreement unless Landlord has consented to such possession in
writing.

24.      SUBORDINATION.

         24.1     Subject to Mortgages and Certain Leases. This Lease Agreement
is and shall be subject and subordinate to any mortgage, or other lien created
by Landlord, whether now existing or hereafter arising upon the Leased Premises,
or upon the Building and to any renewals, refinancing and extensions thereof,
and to any ground or primary lease in existence at the date hereof, if any, or
that may be executed subsequent to the date hereof, and to any and all
supplements, modifications and extensions thereof heretofore or hereafter made,
but Tenant agrees that any such mortgagee or lessor shall have the right at any
time to subordinate such mortgage, or the lien thereof, or such lease to this
Lease Agreement on such terms and subject to such conditions as such mortgagee
or lessor may deem appropriate in its discretion.

         24.2     Subordination of Lease Agreement. Tenant agrees upon demand to
execute such further instruments subordinating this Lease Agreement to any
mortgage or other lien or ground or primary lease now existing or hereafter
placed upon the Leased Premises or the Building as a whole, or attorning to the
holder of any such liens or leases, as Landlord may request.

         24.3     Approval of Lease Agreement by Landlord's Mortgagee. The terms
of this Lease Agreement are subject to approval by the Landlord's mortgagee(s),
and such approval is a condition precedent to Landlord's obligations hereunder.

         24.4     Attorney-in-Fact. If Tenant should fail to execute any
subordination or other agreement required by this Section, promptly as
requested, Tenant hereby irrevocably constitutes Landlord as its
attorney-in-fact to execute such instrument in Tenant's name, place and stead,
it being agreed that such power is one coupled with an interest.

         24.5     Estoppel Certificates; Financial Certificates. Tenant agrees
that it will from time to time upon request by Landlord execute and deliver to
such persons as Landlord shall request, a statement in recordable form
certifying that this Lease Agreement is unmodified and in full force and effect
(or if there have been modifications, that the same is in full force and effect
as so modified), stating the dates to which rent and other charges payable under
this Lease Agreement have been paid, stating that Landlord is not in default
hereunder (or if Tenant alleges a default stating the nature of such alleged
default) and further stating such other matters as Landlord or such persons
shall reasonably require. At any time upon Landlord's request, Tenant agrees to
deliver to Landlord current financial statements of Tenant (with an opinion by a
certified public accountant (if available)), including a balance sheet and a
profit and loss statement for at least two (2) years, all prepared in accordance
with generally accepted accounting principles consistently applied.

         24.6     Attornment. Tenant shall, in the event of the sale or
assignment of Landlord's interest in the building of which the Leased Premises
form a part, or in the event of any proceedings brought for the foreclosure of,
or in the event of exercise of the power of sale under, any mortgage made by
Landlord covering the Leased Premises, attorn to the purchaser and recognize the
purchaser as Landlord under this Lease Agreement.

         24.7     Notice to Mortgagees. In the event of any act or omission by
Landlord which would give Tenant the right to damages from Landlord or the right
to terminate this Lease by reason of a constructive or actual eviction from all
or part of the Leased Premises or otherwise, Tenant shall not sue for such
damages or exercise any such right to terminate until (a) it shall have given
written notice of such act or omission to Landlord and to the holder(s)
(collectively, the "Landlord's Mortgagee") of the indebtedness or other
obligations secured by any first mortgage or first deed of trust affecting the
Leased Premises, if the name and address of the Landlord's Mortgagee shall
previously have been furnished to Tenant and (b) a reasonable period of time for
remedying such act or omission shall have elapsed following the giving of such
notice, during which time Landlord and Landlord's Mortgagee, or either of them,
their agents or employees, shall be entitled to enter upon the Leased Premises
and do therein whatever may be necessary to remedy such act or omission. During
the period after the giving of such notice and

                                    Page 11

<PAGE>

during the remedying of such act or omission, the Rent payable by Tenant for
such period as provided in this Lease shall be abated and apportioned only to
the extent that any part of the Leased Premises shall be untenantable.

25.      ATTORNEY'S FEES.

         Tenant will pay, in addition to the rents and other sums agreed to be
paid hereunder, all collection and court costs incurred by Landlord, and
Landlord's reasonable attorney's fees incurred for the collection of unpaid
rents or the enforcement, defense or interpretation of Landlord's rights under
this Lease Agreement, whether such fees and costs be incurred out of court, at
trial, on appeal or in bankruptcy proceedings.

26.      NO IMPLIED WAIVER.

         26.1     No Waiver. The failure of Landlord to insist at any time upon
the strict performance of any covenant or agreement or to exercise any option,
right, power or remedy contained in this Lease Agreement shall not be construed
as a waiver or a relinquishment thereof for the future.

         26.2     Partial Payment. No payment by Tenant or receipt by Landlord
of a lesser amount than the monthly installment of rent due under this Lease
Agreement shall be deemed to be other than payment on account of the earliest
rent due, nor shall any endorsement or statement on any check or any letter
accompanying any check or payment as rent be deemed an accord and satisfaction,
and Landlord may accept such check or payment without prejudice to Landlord's
right to recover the balance of such rent or pursue any other remedy provided in
this Lease Agreement.

27.      PERSONAL LIABILITY.

         The liability of Landlord (and any partner, stockholder, officer or
director of Landlord) to Tenant for any default by Landlord under this Lease
Agreement shall be limited to the interest of Landlord in the Building, and
Tenant agrees to look solely to Landlord's interest in the Building for the
recovery of any judgment from the Landlord, it being intended that Landlord (and
any partner, stockholder, officer or director of Landlord) shall not be
personally liable for any judgment or deficiency.

28.      FORCE MAJEURE.

         Whenever a period of time is herein prescribed for the taking of any
action by Landlord, Landlord shall not be liable or responsible for, and there
shall be excluded from the computation of such period of time, any delays due to
strikes, riots, acts of God, shortages of labor or materials, war, governmental
laws, regulations or restrictions, financing, or any other cause whatsoever
beyond the control of Landlord.

29.      RELATIONSHIP OF PARTIES.

         Nothing contained in this Lease Agreement shall be deemed or construed
by the parties hereto, nor by any third party, as creating the relationship of
principal and agent or of partnership or of joint venture between the parties
hereto, it being understood and agreed that neither the method of computation of
rent, nor any other provisions contained herein, nor any acts of the parties
herein, shall be deemed to create any relationship between the parties hereto
other than the relationship of Landlord and Tenant.

30.      MISCELLANEOUS.

         30.1 Severability. If any term or provision of this Lease Agreement, or
the application thereof to any person or circumstance shall, to any extent, be
invalid or unenforceable, the remainder of this Lease Agreement or the
application of such term or provision to persons or circumstances other than
those as to which it is held invalid or unenforceable, shall not be affected
thereby, and each term and provision of this Lease Agreement shall be valid and
enforced to the fullest extent permitted by law.

                                    Page 12

<PAGE>

         30.2     Recordation. Tenant agrees not to record this Lease Agreement
or any memorandum hereof without the prior written consent of Landlord. Landlord
may record this Lease Agreement or a memorandum thereof, at its sole election.
Tenant shall, upon request by Landlord, at any time execute a short form lease
in recordable form setting forth the essential elements of this Lease,
including, but not limited to, the names of the parties, the term of the Lease
and the description of the Leased Premises.

         30.3     Governing Law. This Lease Agreement and the rights and
obligations of the parties hereto are governed by the laws of the state of
Alabama.

         30.4     Time of Performance. Except as may be otherwise expressly
provided herein, time is of the essence of this Lease Agreement with respect to
all obligations.

         30.5     Commissions. Tenant warrants and represents to Landlord that
no real estate broker and/or salesman has been involved by Tenant in this Lease,
and hereby indemnifies and agrees to hold harmless and defend Landlord against
any loss, claim, expense or liability with respect to any commissions or
brokerage fees claimed on account of the execution and/or renewal of this Lease
Agreement due to any action of the Tenant.

         30.6     Parking. Landlord grants to Tenant the right to use  forty-two
parking spaces in the surface parking located adjacent to the Building.

         30.7     Effect of Delivery of this Lease Agreement. Landlord has
delivered a copy of this Lease Agreement to Tenant for Tenant's review only, and
the delivery hereof does not constitute an offer to Tenant or an option to
lease. This Lease Agreement shall not be effective until a copy executed by both
Landlord and Tenant is delivered to and accepted by Landlord.

         30.8     Section Headings. The section or subsection headings are used
for convenience of reference only and do not define, limit or extend the scope
or intent of the sections or this Lease Agreement.

         30.9     Entire Agreement. This Lease and any attached schedules,
exhibits and riders constitute the entire agreement between Landlord and Tenant
and no prior or contemporaneous oral promises or representations shall be
binding. This Lease shall not be amended, changed or extended except by written
instrument signed by both parties hereto.

         30.10    Successors and Assigns. All of the covenants, agreements,
terms and conditions to be observed and performed by the parties hereto shall be
applicable to and binding upon their respective heirs, personal representatives,
successors and, to the extent assignment is permitted hereunder, their
respective assigns.

         30.11    Notices.

         (a)      To Landlord:  The Tenant shall pay the rent and shall forward
                  all notices to Landlord at the  following  address (or at such
                  other place as Landlord may hereafter designate in writing):

                                    Mr. J. Daniel Sizemore
                                    Gulf Shores Investment Group, LLC
                                    P.O. Box 1248
                                    Gulf Shores, Alabama 36547

         (b)      To Tenant:  The Landlord shall forward all notices to Tenant
                  at the  following  address (or at such other place as Tenant
                  may hereafter designate in writing):

                                    Mr. J. Daniel Sizemore
                                    Vision Bank
                                    2201 West 1st Street
                                    Gulf Shores, Alabama 36542

                                    Page 13

<PAGE>

         (c)      Any notice provided for in this Lease Agreement must, unless
                  otherwise expressly provided herein, be in writing, and may,
                  unless otherwise expressly provided, be given or be served by
                  depositing the same in the United States mail or overnight
                  delivery service, postage or charges prepaid, and addressed to
                  the party to be notified, or by delivering the same in person
                  to an officer of such party.

         (d)      Notice deposited in the mail or given to an overnight delivery
                  service in the manner hereinabove shall be effective upon
                  receipt, unless such mail or delivery is unclaimed, in which
                  event notice shall be effective five (5) days after the date
                  of mailing or delivery.

         30.12    Gender. The pronouns of any gender shall include the other
genders, and either the singular or the plural shall include the other.

         30.13    Time of the Essence. In all instances where Tenant is required
hereunder to pay any sum or do any act at a particular time or within an
indicated period, it is understood that time is of the essence.

         30.14    Building Name. Landlord agrees that, so long as this Lease,
and any renewals or replacements hereto is in effect, the Building shall be
designated and known as the Vision Bank Building.

         30.15    No Merger. There shall be no merger of this Lease or of the
leasehold estate hereby created with the fee estate in the Leased Premises or
any part thereof by reason of the fact that the same person may acquire or hold,
directly or indirectly, this Lease or the leasehold estate hereby created or any
interest in this Lease or in such leasehold estate as well as the fee estate in
the Leased Premises or any interest in such fee estate.

31.      EXHIBITS AND SCHEDULES.

         In addition to Exhibit A and Schedule 1, the following numbered
exhibits are attached hereto and incorporated herein and made a part of this
Lease for all purposes:

                  Exhibit Number          Description
                  --------------          -----------
                  Exhibit A               Floor Plan of Lease Premises

                                    Page 14

<PAGE>

         IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease
Agreement in multiple original counterparts effective as of the day and year
first above written.

                                    LANDLORD:

                                    GULF SHORES INVESTMENT GROUP, LLC

                                    By: /s/ Patrick Willingham
                                        -------------------------
                                        Its:  Member

                                    TENANT:

                                    VISION BANK

                                    By: /s/ Robert S. McKean
                                        --------------------------
                                        Its:  President

                                    Page 15

<PAGE>

                                    EXHIBIT A

                          FLOOR PLAN OF LEASED PREMISES<PAGE>
                                                                   EXHIBIT 10.18

                         REPLACEMENT RESERVE AGREEMENT

        THIS REPLACEMENT RESERVE AGREEMENT ("Agreement") is made as of January
10, 2002, by and between ILLUMINA, INC., a Delaware corporation, having its
principal place of business at 9885 Towne Centre Drive, San Diego, California
92121 ("Borrower") and BNY WESTERN TRUST COMPANY AS TRUSTEE FOR WASHINGTON
CAPITAL JOINT MASTER TRUST MORTGAGE INCOME FUND, having an address at c/o
Washington Capital Management, Inc., 4350 La Jolla Village Drive, Suite 960, San
Diego, California 92122 ("Lender"), with reference to the following facts:

        A. Borrower, by a promissory note given to Lender (the note, together
with all extensions, renewals, modifications, consolidations, substitutions,
replacements, restatements and increases thereof shall collectively be referred
to as the "Note") executed originally by Diversified Eastgate Venture, an
Illinois general partnership, and assumed by Borrower, is indebted to Lender in
the principal sum of Twenty Six Million Dollars ($26,000,000.00) in lawful money
of the United States of America, with interest at the rate(s) set forth in the
Note (the indebtedness evidenced by the Note, together with such interest
accrued thereon, shall collectively be referred to as the "Loan"), principal and
interest to be payable in accordance with the terms and conditions provided in
the Note.

        B. The Loan is secured by, among other things, a Deed of Trust, Security
Agreement, Assignment of Rents and Fixture Filing (the "Deed of Trust"), dated
as of September 27, 2000, which grants Lender a first lien on the property
encumbered thereby (the "Property"). All and any of the documents other than the
Note, the Deed of Trust and this Agreement now or hereafter executed by Borrower
and/or others and by or in favor of Lender, which wholly or partially secure or
Guarantee payment of the Note are referred to as the "Other Security Documents."

        C. Lender requires as a condition to the assumption of the Loan by
Borrower that Borrower enter into this Agreement and make certain deposits with
Lender as provided in this Agreement as additional security for all of
Borrower's obligations under the Note, the Deed of Trust and the Other Security
Documents.

        NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

        1.     Deposits To The Replacement Reserve.

               1.1 Monthly Deposits. On each date that a regularly scheduled
payment of principal or interest is due under the Note, Borrower shall deposit
with Lender (or, at Lender's election, in a pledged bank or escrow account in
the name of Borrower and pledged to and selected by Lender) a monthly deposit in
the amount of Two Thousand One Hundred Seventy Dollars ($2,170.00) (the "Monthly
Deposit").

               1.2 Reassessment of Monthly Deposit. No more often than once each
"Loan Year" (as defined below), Lender may reassess its estimate of the amount
necessary for the Replacement Reserve Fund (defined below) and may increase the
amount of the Monthly

                                       1
<PAGE>

Deposit by thirty (30) calendar days written notice to Borrower based upon the
cumulative increase in the then-current "Index" (as defined below) over the
"Basic Index" (as defined below). For purposes of this Section 1.2, the "Index"
means: the Consumer Price Index, All Items 1982-1984 = 100, All Urban Consumers
("CPI-U"), for the Los Angeles-Riverside-Orange County, CA metropolitan area, as
published by the United State Department of Labor, Bureau of Labor Statistics,
or its successor index; and the "Basic Index" means the Index published for the
month in which this Agreement is dated. In the event of the discontinuation of
the compilation or publication of the Index, the index selected by Lender that
most nearly replicates the information and statistics compiled in the Index
shall be used to make such calculation. For purposes of this Section 1.2, a
"Loan Year" means each 365 day period (or 366 day period in leap years)
commencing with the date of this Agreement and ending on each anniversary
thereof.

               1.3 Scheduled Repairs. With respect to any Replacement (as
defined below) which is identified on Exhibit "A" attached hereto and made a
part hereof as a Scheduled Repair or Replacement (collectively, a "Scheduled
Repair"), Borrower shall deposit with Lender the amount allocated for such
Scheduled Repair (each, a "Scheduled Repair Deposit") at least two (2) months
prior to the date on which the work for such Scheduled Repair is scheduled to
begin.

               1.4 Replacement Reserve. Monthly Deposits and Scheduled Repair
Deposits made pursuant to this Agreement shall be referred to herein as the
"Replacement Reserve Fund." Lender shall deposit the Replacement Reserve Fund,
as received, in an interest bearing, pledged escrow or bank account (the
"Replacement Reserve") selected by Lender with interest accruing thereon to
Borrower's benefit. Borrower hereby acknowledges and confirms that (a) the
Replacement Reserve Fund shall not constitute a trust fund (and, if deposited in
Lender's name, may be commingled with other monies held by Lender, but if held
in the name of Borrower, such funds shall not be commingled with monies held by
Borrower), and (b) Lender or its designee shall have the sole right to make or
approve withdrawals from the Replacement Reserve.

        2.     Pledge Of Replacement Reserve.

        As additional security for the payment of all sums due under the Loan
and the performance by Borrower of the Obligations (as defined in the Deed of
Trust), Borrower hereby pledges, assigns and grants to Lender a continuing
perfected security interest in and to and a first lien upon, the Replacement
Reserve Fund and the Replacement Reserve; provided that, Lender shall make
disbursements from the Replacement Reserve in accordance with the terms of this
Agreement.

        3.     Disbursements From Replacement Reserve.

               3.1 Disbursements for Replacements Only. Lender shall make
disbursements from the Replacement Reserve to pay or reimburse Borrower only for
the costs of those items listed in Exhibit A (such items, including, without
limitation, those items identified as Scheduled Repairs, collectively the
"Replacements") in the manner provided in this Section 3. Lender shall not be
obligated to make disbursements from the Replacement Reserve to pay or reimburse
Borrower for the costs of routine maintenance to the Property or for costs which
are to be reimbursed from funds held pursuant to a Required Repair Reserve
Agreement dated as of the date hereof between Borrower and Lender, or any
similar agreement, if any (the "Required

                                       2
<PAGE>

Repair Reserve Agreement"). Lender shall, upon written request from Borrower and
satisfaction of the requirements set forth in this Section 3 and Section 4 of
this Agreement, disburse to Borrower amounts from the Replacement Reserve
necessary to pay for the actual approved costs of Replacements or to reimburse
Borrower therefor, upon completion of such Replacements (or, upon partial
completion in the case of Replacements made pursuant to Section 3.4) as
determined by Lender. In no event shall Lender be obligated to disburse funds
from the Replacement Reserve if an Event of Default (hereinafter defined)
exists.

               3.2 Request for Disbursement. Each request for disbursement from
the Replacement Reserve shall be in a form specified or approved by Lender and
shall specify (a) the specific Replacements for which the disbursement is
requested, (b) the quantity and price of each item purchased, if the Replacement
includes the purchase or replacement of specific items, (c) the price of all
materials (grouped by type or category) used in any Replacement other than the
purchase or replacement of specific items, and (d) the cost of all contracted
labor or other services applicable to each Replacement for which such request
for disbursement is made. With each request, Borrower shall certify that all
Replacements have been made in accordance with applicable laws. Each request for
disbursement shall include copies of invoices for all items or materials
purchased and all contracted labor or services provided and each request shall
include evidence satisfactory to Lender of payment of all such amounts. Except
as provided in Section 3.4, each request for disbursement from the Replacement
Reserve shall be made only after completion of the Replacement for which
disbursement is requested. Borrower shall provide Lender evidence of completion
satisfactory to Lender in its reasonable judgment.

               3.3 Disbursement Conditions. Except as set forth in Section 3.4
below, Borrower shall pay all invoices in connection with the Replacements with
respect to which a disbursement is requested prior to submitting such request
for disbursement from the Replacement Reserve unless all such invoices do not
exceed $10,000.00, in which case Lender shall disburse the amount for such
invoices directly to Borrower and Borrower covenants and agrees to promptly pay
such invoices. In addition, as a condition to any disbursement, Lender may
require Borrower to obtain lien waivers from each contractor, supplier,
materialman, mechanic or subcontractor who receives payment in an amount equal
to or greater than $10,000.00 for completion of its work or delivery of its
materials. Any lien waiver delivered hereunder shall conform to the requirements
of applicable law and shall cover all work performed and materials supplied
(including equipment and fixtures) for the Property by that contractor,
supplier, subcontractor, mechanic or materialman through the date covered by the
current reimbursement request. Lender may in its sole discretion, accept copies
of cancelled checks in lieu of, or in addition to any of the foregoing invoice
and/or lien waiver requirements.

               3.4 Partial Completion. If (a) the time required to complete a
Replacement exceeds one month, (b) the contractor performing such Replacement
requires periodic payments pursuant to the terms of a written contract, (c)
Lender has approved in writing in advance such periodic payments, and (d) the
cost of the portion of the work completed under such contract exceeds Ten
Thousand Dollars ($10,000.00), a request for reimbursement from the Replacement
Reserve may be made after completion of a portion of the work under such
contract, provided (i) such contract requires payment upon completion of such
portion of the work, (ii) the materials for which the request is made are on
site at the Property and are properly secured or have been installed in the
Property, (iii) all other conditions in this Agreement for disbursement have
been

                                       3
<PAGE>

satisfied, (iv) funds remaining in the Replacement Reserve are, in Lender's
judgment, sufficient to complete such Replacement and other Replacements when
required, and (v) each contractor or subcontractor receiving payments under such
contract shall provide a waiver of lien with respect to amounts which have been
paid to that contractor or subcontractor.

               3.5 Number of Requests. Except as provided in Section 3.4,
Borrower shall not make a request for disbursement from the Replacement Reserve
more frequently than once in any calendar month.

               3.6 Final Disbursement. Lender shall disburse to Borrower all
amounts remaining in the Replacement Reserve (less all amounts which may have
been applied by Lender as permitted by this Agreement) upon Borrower's
completion of all Replacements to the reasonable satisfaction of Lender,
provided that (a) there is no Event of Default under the Note, the Deed of
Trust, this Agreement or any of the Other Security Documents which has not been
cured to Lender's satisfaction, (b) Lender has received evidence required by
Section 4.8 below that there are no mechanic's or materialman's liens, and (c)
Lender has received all cost and architectural information required by Lender.

        4.     Performance Of Replacements.

               4.1 Workmanlike Completion. Borrower shall make Replacements when
required in order to keep the Property in good order and repair and in good
marketable condition, and to keep the Property or any portion thereof from
deteriorating. With respect to those Replacements identified as Scheduled
Repairs, Borrower shall commence the work in connection with each such Scheduled
Repair on or before the date specified in Exhibit A, and shall diligently pursue
such work to completion, and shall complete such Scheduled Repair no later than
the date specified therefor in Exhibit A. Borrower shall complete all
Replacements in a good and workmanlike manner as soon as practicable following
the commencement of making each such Replacement.

               4.2 Contracts. Lender reserves the right, at its option, to
approve all contracts or work orders with materialmen, mechanics, suppliers,
subcontractors, contractors or other parties providing labor or materials in
connection with the Replacements, the cost of which exceeds or is expected to
exceed $10,000.00. Upon Lender's request, Borrower shall assign any contract or
subcontract to Lender.

               4.3 Lender's Right to Complete Replacements. In the event Lender
determines in its reasonable discretion that any Replacement has not been
commenced as required in Section 4.1 above, is not being performed in a
workmanlike or timely manner, or that any Replacement has not been completed in
a workmanlike manner by the completion date specified for such Replacement in
Exhibit "A," Lender shall have the option to withhold the disbursement for such
unsatisfactory Replacement and to proceed under existing contracts or to
contract with third parties to make or complete such Replacement and to apply
the Replacement Reserve Fund toward the labor and materials necessary to
complete such Replacement, without providing any prior notice to Borrower, and
to exercise any and all other remedies available to Lender upon an Event of
Default hereunder.

                                       4
<PAGE>

               4.4 Additional Replacements. If at any time during, the term of
the Loan, Lender determines that replacements not listed on Exhibit "A" (and not
covered by the Required Repair Reserve Agreement), are advisable to keep the
Property in good order and repair and in good marketable condition, or to
prevent deterioration of the Property or if any major building system or
component (e.g., roof, HVAC system) not listed on Exhibit "A" will reach the end
of its useful life within two (2) years of the date of any inspection by Lender,
Lender may send Borrower written notice of the need for making such additional
replacements (the "Additional Replacements"). Borrower shall promptly commence
making such Additional Replacements in accordance with all the requirements of
this Agreement. If Lender determines that (i) such replacements are of the type
intended to be covered by this Agreement, (ii) such replacements are not covered
or of the type intended to be covered by the Required Repair Reserve Agreement,
(iii) costs for such replacements are reasonable, (iv) the funds in the
Replacement Reserve are sufficient to pay for such replacements, and (v) all
other conditions for disbursement under this Agreement have been met, Lender may
disburse funds from the Replacement Reserve for such Additional Replacements;
provided, however, Lender, in its discretion, may refuse to disburse funds from
the Replacement Reserve for any item other than a Replacement specified on
Exhibit "A." If Borrower fails to commence, within thirty (30) days after such
notice or the commencement date specified in such notice, such Additional
Replacements and/or fails to diligently pursue completion of such Additional
Replacements, such failure shall be an Event of Default under this Agreement,
and, in addition to all other rights Lender may have under this Agreement upon
an Event of Default (including but not limited to Lender's rights under Section
5 of this Agreement) and under the Note, the Deed of Trust and the Other
Security Documents, Lender may contract with third parties to make such
Additional Replacements and may at its sole discretion (a) apply the funds in
the Replacement Reserve toward the labor and materials necessary to complete
such Additional Replacements, or (b) demand payment of such Additional
Replacements from Borrower. Except for Sections 3.1 through 3.5, all references
in this Agreement to "Replacements" or "Scheduled Repairs" shall include the
"Additional Replacements," as applicable.

               4.5 Entry onto Property. In order to facilitate Lender's
completion or making of the Replacements pursuant to Sections 4.3 and 4.4 above,
Borrower grants Lender the right to enter onto the Property and perform any and
all work and labor necessary to complete or make the Replacements and/or employ
watchmen to protect the Property from damage. All sums so expended by Lender
shall be deemed to have been advanced under the Loan to Borrower and secured by
the Deed of Trust. For this purpose, Borrower constitutes and appoints Lender
its true and lawful attorney-in-fact with full power of substitution to complete
or undertake the Replacements in the name of Borrower. Such power of attorney
shall be deemed to be a power coupled with an interest and cannot be revoked.
Borrower empowers said attorney-in-fact as follows: (a) to use any funds in the
Replacement Reserve for the purpose of making or completing the Replacements;
(b) to make such additions, changes and corrections to the Replacements as shall
be necessary or desirable to complete the Replacements; (c) to employ such
contractors, subcontractors, agents, architects and inspectors as shall be
required for such purposes; (d) to pay, settle or compromise all existing bills
and claims which are or may become liens against the Property, or as may be
necessary or desirable for the completion of the Replacements, or for clearance
of title; (e) to execute all applications and certificates in the name of
Borrower which may be required by any of the contract documents; (f) in its
reasonable discretion, to prosecute and defend all actions or proceedings in
connection with the Property or

                                       5
<PAGE>

the rehabilitation and repair of the Property; and (g) to do any and every act
which Borrower might do in its own behalf to fulfill the terms of this
Agreement.

               4.6 No Obligation of Lender. Nothing in this Section 4 shall: (a)
make Lender responsible for making or completing the Replacements; (b) require
Lender to expend funds in addition to the Replacement Reserve Fund to make or
complete any Replacement; (c) obligate Lender to proceed with the Replacements;
or (d) obligate Lender to demand from Borrower additional sums to make or
complete any Replacement.

               4.7 Inspections.

                   (a) Borrower shall permit Lender and Lender's agents and
representatives (including, without limitation, Lender's engineer, architect or
inspector) or third parties making Replacements pursuant to this Section 4 to
enter onto the Property during normal business hours (subject to the rights of
tenants under their Leases) to inspect the progress of any Replacements and all
materials being used in connection therewith, to examine all plans and shop
drawings relating to such Replacements which are or may be kept at the Property,
and to complete any Replacements made pursuant to this Section 4. Borrower shall
cause all contractors and subcontractors to cooperate with Lender or Lender's
representatives or such other persons described above in connection with
inspections described in this Section 4.7 or the completion of Replacements
pursuant to this Section 4.

                   (b) Lender may require an inspection of the Property at
Borrower's expense prior to making a monthly disbursement from the Replacement
Reserve in order to verify completion of the Replacements for which
reimbursement is sought. Lender may require that such inspection be conducted by
an appropriate, independent, qualified professional selected by Lender and/or
may require a copy of a certificate of completion by an independent, qualified
professional acceptable to Lender prior to the disbursement of any amounts from
the Replacement Reserve. Borrower shall pay the expense of the inspection as
required hereunder, whether such inspection is conducted by Lender or by an
independent, qualified professional.

               4.8 Lien-Free Completion.

                   (a) The Replacements and all materials, equipment, fixtures,
or any other item comprising a part of any Replacement shall be constructed,
installed or completed, as applicable, free and clear of all mechanic's,
materialman's or other liens (except for those liens existing on the date of
this Agreement which have been approved in writing, by Lender, if any).

                   (b) Lender may require Borrower to provide Lender with a
search of title to the Property effective to the date of the disbursement, which
search shows that no mechanic's or materialmen's liens or other liens of any
nature have been placed against the Property since the date of recordation of
the Deed of Trust and that title to the Property is free and clear of all liens
(other than the lien of the Deed of Trust and any other liens previously
approved in writing by Lender, if any).

               4.9 Compliance with Laws. All Replacements shall comply with all
applicable laws and applicable insurance requirements, including, without
limitation, applicable

                                       6
<PAGE>

building codes, special use permits, environmental regulations and requirements
of insurance underwriters.

               4.10 Insurance Requirements. In addition to any insurance
required under the Deed of Trust and the Other Security Documents, Borrower
shall provide or cause to be provided workmen's compensation insurance,
builder's risk, and public liability insurance and other insurance to the extent
required under applicable law in connection with a particular Replacement. All
such policies shall be in form and amount reasonably satisfactory to Lender. All
such policies which can be endorsed with standard mortgagee clauses making loss
payable to Lender or its assigns shall be so endorsed. Certified copies of such
policies shall be delivered to Lender.

        5.     Failure To Make Replacements.

               5.1 Event of Default. It shall be an "Event of Default" under
this Agreement if Borrower (a) fails to make any Monthly Deposit payment
required hereunder within ten (10) calendar days of the date when due, or (b) at
any time prior to the completion of the Required Repairs, Borrower abandons or
ceases work on any Replacement (which Borrower has commenced making) for a
period of thirty (30) calendar days, unless such cessation results from an event
of Force Majeure (as defined in the Deed of Trust) causes beyond the control of
Borrower and Borrower is diligently pursuing the reinstitution of work, (c)
Borrower fails to complete each Replacement in a good and workmanlike manner
within the date set forth in Exhibit "A", (d) a mechanic's or materialman's lien
is filed against the Property (unless such mechanic's or materialman's lien is
promptly contested in good faith by Borrower and is bonded over to the
satisfaction of Lender), or (e) Borrower fails to comply with any other
provision of this Agreement and such failure is not cured within thirty (30)
calendar days after notice from Lender; provided that if such default cannot
reasonably be cured within such thirty (30) day period and Borrower shall have
commenced to cure such default within such thirty (30) day period and thereafter
diligently and expeditiously proceeds to cure the same, such thirty (30) day
period shall be extended for so long as it shall require Borrower in the
exercise of due diligence to cure such default, it being agreed that no such
extension shall be for a period in excess of one hundred twenty (120) days,
unless, only in the case of cures that require construction or remedial work,
such cure cannot with diligence be completed within such one hundred twenty
(120) day period, in which case such period shall be extended for an additional
one hundred twenty (120) days. The occurrence of an Event of Default, as defined
in the Note, the Deed of Trust or any of the Other Security Documents, shall
also be an "Event of Default" under this Agreement. Upon the occurrence and
during the continuance of an Event of Default, Borrower shall not be entitled to
receive any funds from the Replacement Reserve and Lender may use the
Replacement Reserve Fund (or any portion thereof) for any purpose, including,
but not limited to, completion of the Replacements as provided in Section 4, or
for any other repair or replacement to the Property or toward payment of the
Debt in such order, proportion and priority as Lender may determine in its sole
discretion. Lender's right to withdraw and apply the Replacement Reserve Fund
shall be in addition to all other rights and remedies provided to Lender under
this Agreement, the Note, the Deed of Trust, the Other Security Documents, and
at law or in equity.

                                       7
<PAGE>

               5.2 Insufficient Funds in the Replacement Reserve. The
insufficiency of any balance in the Replacement Reserve shall not relieve
Borrower from its obligation (a) to fulfill all covenants in the Deed of Trust
and the Other Security Documents, and (b) to complete all Replacements in
accordance with the covenants and agreements in this Agreement and to pay all
costs in connection therewith.

        6.     Waivers.

               6.1 Waiver of Counterclaim. Borrower hereby waives the right to
assert a counterclaim, other than a mandatory or compulsory counterclaim, in any
action or proceeding brought against it by Lender arising out of or in any way
connected with this Agreement, the Note, the Deed of Trust, any of the Other
Security Documents, or the Obligations.

               6.2 Waiver of Notice. To the extent permitted by applicable law,
Borrower shall not be entitled to any notices of any nature whatsoever from
Lender except with respect to matters for which this Agreement specifically and
expressly provides for the giving of notice by Lender to Borrower and except
with respect to matters for which Lender is required by applicable law to give
notice, and Borrower hereby expressly waives the right to receive any notice
from Lender with respect to any matter for which this Agreement does not
specifically and expressly provide for the giving of notice by Lender to
Borrower.

               6.3 Waiver of Statute of Limitations. Borrower hereby expressly
waives and releases to the fullest extent permitted by law, the pleading of any
statute of limitations as a defense to any and all of its obligations hereunder.

               6.4 Waiver of Trial By Jury. BORROWER HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM, WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING
DIRECTLY OR INDIRECTLY TO THE LOAN EVIDENCED BY THE NOTE, THE APPLICATION FOR
THE LOAN EVIDENCED BY THE NOTE, THE NOTE, THIS AGREEMENT, THE DEED OF TRUST OR
THE OTHER SECURITY DOCUMENTS OR ANY ACTS OR OMISSIONS OF LENDER, ITS OFFICERS,
EMPLOYEES, DIRECTORS OR AGENTS IN CONNECTION THEREWITH.

        7.     Miscellaneous Provisions.

               7.1 Notices. All notices or other written communications
hereunder shall be given and become effective as provided in the Deed of Trust.

               7.2 Choice of Law. This Agreement shall be governed, construed,
applied and enforced in accordance with the laws of the State of California and
the applicable laws of the United States of America.

               7.3 Provisions Subject to Applicable Law. All rights, powers and
remedies provided in this Agreement may be exercised only to the extent that the
exercise thereof does not violate any applicable provisions of law and are
intended to be limited to the extent necessary so that they will not render this
Agreement invalid or unenforceable under the provisions of any applicable law.

                                       8
<PAGE>

               7.4 Inapplicable Provision. If any term of this Agreement or any
application thereof shall be invalid or unenforceable, the remainder of this
Agreement and any other application of the term shall not be affected thereby.

               7.5 Costs. Borrower agrees to indemnify Lender and to hold Lender
harmless from and against any and all actions, suits, claims, demands,
liabilities, losses, damages, obligations and costs and expenses (including
litigation costs) arising from or in any way connected with the performance of
the Replacements or the holding or disbursing of the Replacement Reserve or the
Replacement Reserve Fund. Wherever it is provided for herein that Borrower pay
any costs and expenses, such costs and expenses shall include, but not be
limited to, all legal fees and disbursements of Lender (whether of retained
firms, the reimbursement for the expenses of in-house staff or otherwise).
Borrower hereby assigns to Lender all rights and claims Borrower may have
against persons or entities supplying labor or materials in connection with the
Replacements.

               7.6 Headings, Etc. The headings and captions of various Sections
of this Agreement are for convenience of reference only and are not to be
construed as defining or limiting in any way, the scope or intent of the
provisions hereof.

               7.7 No Oral Change. This Agreement, and any provisions hereof,
may not be modified, amended, waived, extended, changed, discharged or
terminated orally or by any act or failure to act on the part of Borrower or
Lender, but only by an agreement in writing signed by the party against whom
enforcement of any modification, amendment, waiver, extension, change, discharge
or termination is sought.

               7.8 Liability. If Borrower consists of more than one person, the
obligations and liabilities of each such person hereunder shall be joint and
several. This Agreement shall be binding upon and inure to the benefit of
Borrower and Lender and their respective successors and assigns forever.

               7.9 Duplicate Originals; Counterparts. This Agreement may be
executed in any number of duplicate originals and each duplicate original shall
be deemed to be an original. This Agreement may be executed in several
counterparts, each of which counterparts shall be deemed an original instrument
and all of which together shall constitute a single Agreement. The failure of
any party hereto to execute this Agreement, or any counterpart hereof, shall not
relieve the other signatories from their obligations hereunder.

               7.10 Number and Gender. Whenever the context may require, any
pronouns used herein shall include the corresponding masculine, feminine or
neuter forms, and the singular form of nouns and pronouns shall include the
plural and vice versa.

               7.11 Borrower's Records. Borrower shall furnish such financial
statements, invoices, records, papers and documents relating to the Property as
Lender may reasonably require from time to time to make the determinations
permitted or required to be made by Lender under this Agreement.

               7.12 No Third Party Beneficiary. This Agreement is intended
solely for the benefit of Borrower and Lender and their respective successors
and assigns, and no third party

                                       9
<PAGE>

shall have any rights or interest in the Replacement Reserve, the Replacement
Reserve Fund, this Agreement, the Note, the Deed of Trust or any of the Other
Security Documents. Nothing contained in this Agreement shall be deemed or
construed to create an obligation on the part of Lender to any third party, nor
shall any third party have a right to enforce against Lender any right that
Borrower may have under this Agreement.

               7.13 No Agency or Partnership. Nothing contained in this
Agreement shall constitute Lender as a joint venturer, partner, agent,
tenant-in-common or joint tenant of Borrower, or render Lender liable for any
debts, obligations, acts, omissions, representations, or contracts of Borrower.

               7.14 Termination of Replacement Reserve. After (a) payment in
full of the Debt and release by Lender of the lien of the Deed of Trust and (b)
payment in full for all Replacements completed or contracted to be performed
prior to the date of the payment described in (a) above (provided Borrower has
supplied Lender with evidence satisfactory to Lender of payment in full for all
Replacements, and, if requested by Lender, waivers of liens and/or a title
search of the Property or an endorsement to Lender's title insurance policy),
Lender shall disburse to Borrower all amounts remaining in the Replacement
Reserve, and this Agreement shall terminate.

               7.15 Enforcement of Agreement. This Agreement is executed by
Borrower and Lender for the benefit of Lender. Borrower understands and agrees
that, in connection with any sale of the Loan to an Investor (as defined in the
Deed of Trust), this Agreement may be assigned to such Investor.

               7.16 Sole Discretion of Lender. Wherever pursuant to this
Agreement (a) Lender exercises any right given to it to approve or disapprove,
(b) any arrangement or term is to be satisfactory to Lender, or (c) any other
decision or determination is to be made by Lender, the decision of Lender to
approve or disapprove all decisions that arrangements or terms are satisfactory
or not satisfactory, and all other decisions and determinations made by Lender,
shall be in the reasonable discretion of Lender and shall be final and
conclusive, except as may be otherwise expressly and specifically provided
herein.

               7.17 Completion of Replacements. Lender's approval of any plans
for any Replacement, release of funds from the Replacement Reserve, inspection
of the Property by Lender or Lender's agents, or other acknowledgment of
completion of any Replacement in a manner satisfactory to Lender shall not be
deemed an acknowledgment or warranty to any person that the Replacement has been
completed in accordance with applicable laws.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       10
<PAGE>

        IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date first written above.

"BORROWER"                         ILLUMINA, INC.,
                                   a Delaware corporation

                                   By:       /s/ TIMOTHY M. KISH
                                           -------------------------------
                                           Timothy M. Kish
                                           Its:  Vice President and Chief
                                                 Financial Officer

"LENDER"                           BNY WESTERN TRUST COMPANY AS TRUSTEE FOR
                                   WASHINGTON CAPITAL JOINT MASTER TRUST
                                   MORTGAGE INCOME FUND

                                   By:       /s/ COLLEEN IWANO
                                           -------------------------------
                                           Colleen Iwano
                                           Its:  Senior Vice President

                                       11
<PAGE>

                                    EXHIBIT A

                         List of Potential Replacements

1. Non-recurring capital repairs and replacements, including non-recurring
structural repairs to the Property.

                                       12

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