Document:

<PAGE>

                                                                  Exhibit 10.22

                                LEASE AGREEMENT
                                ---------------

     THIS AGREEMENT, made this 24th day of January, 2001, by and between DAUPHIN
ASSOCIATES, INC., a Pennsylvania corporation maintaining offices at 1830 S. 19th
Street, Harrisburg, Dauphin county, Pennsylvania (hereinafter referred to as
"Lessor") and QTL Corporation, a California corporation maintaining offices at
1353 Dayton St., Salinas, Ca 93901 (hereinafter referred to as "Lessee").

                                  WITNESSETH:

     WHEREAS, Lessor is the owner of certain premises in the nature of a
warehouse facility located at 1830 S. 19th Street (Rear), Harrisburg, Dauphin
County, Pennsylvania; and

     WHEREAS, Lessor desires to demise and let unto Lessee and Lessee desires to
enter into a lease agreement with Lessor for a portion of the aforesaid
warehouse facility as more specifically defined hereinafter;

     NOW, therefore, the parties hereto, intending to be legally bound hereby,
for and in consideration of the mutual promises and covenants hereinafter set
forth, and for other good and valuable consideration, receipt whereof is hereby
acknowledged, do hereby covenant and agree by and between themselves as follows:

     1.   Premises and Basic Terms.
          ------------------------

          Lessor does hereby demise and let unto Lessee 15,000 square feet of
warehouse space located at 1830 South 19th Street (Rear), Harrisburg, Dauphin
County, Pennsylvania, as designated on the schematic drawing attached hereto and
made a part hereof as Exhibit "A" (all of which area is hereinafter referred to
as the "Premises") for the term of five (5) years and two (2) months commencing
on March 1, 1997, and ending on April 30, 2002, for the rental consideration
more specifically set forth hereinafter in paragraph 2 of this Lease Agreement.
Possession of the premises shall begin on March 1, 1997, which shall be the
effective date of the Lease.  However, the rental consideration provided for
hereunder shall be payable from May 1, 1997.

     2.   Rental Consideration.
          ---------------------

          Lessee agrees to pay the Lessor rental consideration at the following
annual rates per year:

               lst Year (May 1, 1997 through April 30, 1998)..  $68,250
               2nd Year (May 1, 1998 through April 30, 1999)..  $68,250
               3rd Year (May 1, 1999 through April 30, 2000)..  $68,250
               4th Year (May 1, 2000 through April 30, 2001)..  $72,000
               5th Year (May 1, 2001 through April 30, 2002)..  $72,000
<PAGE>

The above rates include a common area maintenance charge for the following:
heat, water, air conditioning, real estate taxes, fire insurance on the
structure, structural repairs over $100, HVAC repairs over $100, snow removal
and lawn maintenance.  Rent shall be due and payable on the first day of each
month of the Lease term at the principal offices of Lessor at 1830 S. 19th
Street, Harrisburg, Pennsylvania, in lawful money of the United States of
America, in the amount of one-twelfth (1/12) of the yearly rental obligation.

     3.   Electricity: Additional Rent.
          ----------------------------

          Lessee agrees to pay as additional rent, in addition to the other
rentals set forth hereinabove, all bills submitted by Lessor for electrical
service or use to the premises including bills for connection or disconnection,
and any and all other sums which may become due by reason of the failure of
Lessee to comply with all of the covenants of this Lease and any and all
damages, costs and expenses which the Lessor may suffer or incur by reason of
any default of the Lessee or failure on its part to comply with the covenants of
this Lease, and each of them, and also any and all damages to the demised
premises caused by any act or neglect of Lessee.

     4.   Options to Renew.
          ----------------

          Lessee shall have five (5) one-year options to renew this Lease, each
of which is exercisable only if Lessee has complied with all the covenants of
this Lease and only if Lessor consents to the renewal.  Lessee must give Lessor
60 days notice prior to the expiration of the then current lease year of its
intent to exercise each renewal option.  Lessee agrees to pay the Lessor rental
consideration at the following annual rates per year.

          lst Renewal Year (May 1, 2002 through April 30, 2003)..  $77,250
          2nd Renewal Year (May 1, 2003 through April 30, 2004)..  $81,000
          3rd Renewal Year (May 1, 2004 through April 30, 2005)..  $81,000
          4th Renewal Year (May 1, 2005 through April 30, 2006)..  $84,750
          5th Renewal Year (May 1, 2006 through April 30, 2007)..  $84,750

Rent shall be due and payable on the first day of each month of each renewal
term at the principal offices of Lessor at 1830 S. 19th Street, Harrisburg,
Pennsylvania, in lawful money of the United States of America, in the amount of
one-twelfth (1/12) of the yearly rental obligation.

     5.   Affirmative Covenants of the Lessee.
          -----------------------------------

          Lessee covenants and agrees that it will without demand

          (a)  Payment of Rent.
               ---------------

          Pay the rent and all other charges herein reserved as rent on the days
and times and at the place that the same are made payable, without fail, and if
Lessor shall at any time or times accept said rent or rent charges after the
same shall have become due and payable, such acceptance shall not excuse delay
upon subsequent occasions, or constitute or be construed as a waiver of any of
Lessor's rights.

                                      -2-
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          (b)  Cleaning, Repairing, Etc..
               -------------------------

          Pay for trash removal and janitorial service and otherwise keep the
demised premises clean and free from all ashes, dirt and other refuse matter;
replace all glass windows, doors, etc., broken by Lessee and be responsible for
repairs of $100 or less and minor interior repairs; keep all waste and drain
pipes open; keep the premises in good order and repair as they now are,
reasonable wear and tear and damage by accidental fire or other casualty not
occurring through negligence of Lessee or those employed by or acting for Lessee
excepted.  The Lessee agrees to surrender the demised premises in the same
condition in which Lessee has herein agreed to keep the same during the
continuance of this Lease.

          (c)  Requirements of Public Authorities.
               ----------------------------------

          Comply with any requirements of any of the constituted public
authorities, and with the terms of any  State or Federal statute or local
ordinance or regulation applicable to Lessee or its use of the demised premises,
and save Lessor harmless from penalties, fines, costs or damages resulting from
failure so to do.

          (d)  Fire.
               ----

          Use every reasonable precaution against fire.

          (e)  Surrender of Possession.
               -----------------------

          Peaceably deliver up and surrender possession of the demised premises
to the Lessor at the expiration or sooner termination of this Lease, promptly
delivering to Lessor at its office all keys for the demised premises.

          (f)  Notice of Fire, Etc..
               --------------------

          Give to Lessor prompt written notice of any accident, fire or damage
occurring on or to the demised premises.

     5.   Negative Covenants of Lessee.
          ----------------------------

          Lessee covenants and agrees that it will do none of the following
things without the consent in writing of Lessor first had and obtained, such
consent to not be unreasonably withheld by Lessor.

          (a)  Use of Premises.
               ---------------

          Occupy the demised premises in any manner or for any purpose other
than for the storage of school supplies.

          (b)  Assignment and Subletting.
               -------------------------

                                      -3-
<PAGE>

          Assign, mortgage or pledge this Lease or under-let or sublease the
demised premises, or any part thereof, or permit any other person, firm or
corporation to occupy the demised premises, or any part thereof; nor shall any
assignee or sublessee assign, mortgage or pledge this Lease or such sublease,
without an additional written consent by the Lessor and without such consent, no
such assignment, mortgage or pledge shall be valid.  If the Lessee becomes
insolvent, or makes an assignment for the benefit of creditors, or if a petition
in bankruptcy is filed by or against the Lessee or a bill in equity or other
proceeding for the appointment of a receiver for the Lessee is filed, or if the
real or personal property of the Lessee shall be sold or levied upon by any
Sheriff, Marshal or Constable, the same shall be a violation of this covenant.

          (c)  Signs.
               -----

          Place or allow to be placed any stand, booth, sign or show case upon
the doorsteps, vestibules or outside walls or pavements of said premises, or
paint, place, erect or cause to be painted, placed or erected any sign,
projection or devise on or in any part of the premises.  Lessee shall remove any
sign, projection or devised painted, placed or erected, if permission has been
granted, and restore the walls, etc. to their former conditions, at or prior to
the expiration of this Lease.  In case of the breach of this covenant (in
addition to all other remedies given to Lessor in case of the breach of any
conditions or covenants of this Lease) Lessor shall have the privilege of
removing said stand, booth, sign, showcase, projection or device, and restoring
said walls, etc., to their former condition, and Lessee, at Lessor's option,
shall be liable to Lessor for any and all expenses so incurred by Lessor.

          (d)  Alterations, Improvements.
               -------------------------

          Make any alterations or improvements to the demised premises.  In the
event such alterations and improvements are made with Lessor's consent, all such
alterations and improvements shall remain the property of Lessor on the date of
termination of this Lease or, at the option of Lessor, shall be removed by
Lessee at Lessee's expense.

          (e)  Machinery.
               ---------

          Use or operate any machinery that is harmful to the building or
Lessor's employees.

          (f)  Weights.
               -------

          Place any weights in any portion of the demised premises beyond the
safe carrying capacity of the structure.

          (g)  Fire Insurance.
               --------------

          Do or suffer to be done, any act, matter or thing objectionable to the
fire insurance companies whereby the fire insurance or any other insurance now
in force or hereafter to be placed on the demised premises, or any part thereof,
or on the building of which the demised

                                      -4-
<PAGE>

premises may be a part, shall become void or suspended, or whereby the same
shall be rated as a more hazardous risk than at the date of execution of this
Lease, or employ any person or persons objectionable to the fire insurance
companies or carry explosive matter of any kind in and about the demised
premises.

          (h)  Removal of Goods.
               ----------------

          Remove, attempt to remove or manifest an intention to remove Lessee's
goods or property from or out of the demised premises otherwise than in the
ordinary and usual course of business, without having first provided notice to
Lessor.

          (i)  Vacate Premises.
               ---------------

          Without providing Lessor prior written notice, vacate or desert said
premises during the term of this Lease, or permit the same to be empty and
unoccupied.

     6.   Lessor's Rights.
          ---------------

          Lessee covenants and agrees that Lessor shall have the right to do the
following things and matters in and about the demised premises.

          (a)  Inspection of Premises.
               ----------------------

          At all reasonable times by itself or its duly authorized agents to go
upon and inspect the demised premises and every part thereof, and/or at its
option to make repairs, alterations and additions to the demised premises or the
building of which the demised premises is a part.

          (b)  Sale or Rent Sign - Prospective Purchases or Tenants.
               ----------------------------------------------------

          To display a "For Sale' sign at any time, and also, after notice from
either party of intention to determine this Lease, or at any time within three
months prior to the expiration of this Lease, a "For Rent" sign, or both "For
Rent" and "For Sale" signs; and all of said signs shall be placed upon such part
of the premises as Lessor shall require.  Prospective purchasers or tenants
authorized by Lessor may inspect the premises at reasonable hours.

     7.   Insurance.
          ---------

          Lessee shall, at Lessee's expense, obtain and keep in force during the
term of this Lease a policy of Combined Single Limit, Bodily Injury and Property
Damage insurance insuring Lessor and Lessee against any liability arising out of
Lessee's use or occupancy of the premises and all areas appurtenant thereto.
Such insurance shall be a combined single limit policy in an amount not less
than One Million ($1,000,000) Dollars.  The policy shall contain cross liability
endorsements and shall insure performance by Lessee of the indemnity provisions
of Paragraph 8. The limits of said insurance shall not, however, limit the
liability of Lessee hereunder.  In the event that the premises constitute a part
of a larger property said insurance

                                      -5-
<PAGE>

shall have a Lessor's Protective Liability endorsement attached thereto. If
Lessee shall fail to procure and maintain said insurance Lessor may, but shall
not be required to, procure and maintain the same, but at the expense of Lessee.

     8.   Further Insurance.
          -----------------

          (a)  Property Insurance.
               ------------------

          Lessor  shall obtain and keep in force during the term of this Lease a
policy or policies of insurance covering loss or damage to the premises, but not
Lessee's fixtures, equipment, tenant improvements or tenant inventories, in the
amount of the full replacement value thereof, providing protection against all
perils included within the classification of fire, extended coverage, vandalism,
malicious mischief, special extended perils (all risk) but not plate glass
insurance.  In the event that the premises contains sprinklers then the
insurance coverage shall include sprinkler leakage insurance.

          (b)  Insurance Policies
               ------------------

          Insurance required hereunder shall be in companies holding a "General
Policyholders Rating"" of B plus or better as set forth in the most current
issue of "Best Insurance Guide".  Lessee shall deliver to Lessor certificates
evidencing the existence and amounts of such insurance.  No such policy shall be
cancelable except after ten (10) days prior written notice to Lessor and Lessee.
Neither Lessor nor Lessee shall do or permit to be done anything which shall
invalidate the required insurance policies.

          (c)  Indemnity.
               ---------

          Lessee shall indemnify and hold harmless Lessor from and against any
and all claims arising from Lessee's use of the premises, or from the conduct of
Lessee's business or from any activity, work or things done, permitted or
suffered by Lessee in or about the premises or elsewhere and shall further
indemnify and hold harmless Lessor from and against any and all claims arising
from any breach or default in the performance of any obligation on Lessee's part
to be performed under the terms of this Lease, or arising from any negligence of
the Lessee, or any of Lessee's agents, contractors, or employees, and from and
against all costs, attorney's fees, expenses and liabilities incurred in the
defense of any such claim or any action or proceeding brought thereon; and in
case any action or proceeding be brought against Lessor by reason of any such
claim, Lessee upon notice from Lessor shall defend the same at Lessee's expense.

     9.   Responsibility of Lessor.
          ------------------------

          (a)  Total Destruction of Premises.
               -----------------------------

          In the event that the demised premises is totally destroyed or so
damaged by fire or other casualty not occurring through fault or negligence of
the Lessee or those employed by or acting for Lessee, that the same cannot be
repaired or restored within a reasonable time, this Lease shall absolutely cease
and terminate, and the rent shall abate for the balance of the term.

                                      -6-
<PAGE>

          (b)  Partial Destruction of Premises.
               -------------------------------

          If the damage caused as above be only partial and such that the
premises can be restored to their then condition within a reasonable time, the
Lessor may, at its option, restore the same with reasonable promptness,
reserving the right to enter upon the demised premises for that purpose.  The
Lessor also reserves the right to enter upon the demised premises whenever
necessary to repair damage caused by fire or other casualty to the building of
which the demised premises is a part, even though the effect of such entry be to
render the demised premises or a part thereof untenantable.  In either event the
rent shall be apportioned and suspended during the time the Lessor is in
possession taking into account the proportion of the demised premises rendered
untenantable and the duration of the Lessor's possession.

          (c)  Repair by Lessor.
               ----------------

          Lessor shall make such election to repair the premises or terminate
this lease by giving notice thereof to Lessee at the leased premises within
thirty (30) days from the day Lessor received notice that the demised premises
had been destroyed or damaged by fire or other casualty.

          (d)  Damage for Interruption of Use.
               ------------------------------

          Lessor shall not be liable for any damage, compensation or claim by
reason of inconvenience or annoyance arising from the necessity of repairing any
portion of the building, the interruption in the use of the premises, or the
termination of this lease by reason of the destruction of the premises.

          (e)  Representation of Condition of Premises.
               ---------------------------------------

          The Lessor has let the demised premises in their present condition and
without any representations on the part of the Lessor, its officers, employees,
servants and/or agents.

     10.  Structural Maintenance: Heat.
          ----------------------------

          Lessor shall be responsible for all structural maintenance of the
demised premises as well as maintenance of the heating, ventilation and air
conditioning equipment.  Lessor shall supply heat for the demised premises as
currently provided at no charge to Lessee.

     11.  Truck Access.
          ------------

          Lessee shall have access to the rear of the demised premises for
delivery and pickup truck traffic.  Under no circumstances shall Lessee in any
way disrupt parking facilities provided for Lessor's employees.

     12.  Remedies of Lessor.
          ------------------

                                      -7-
<PAGE>

          If the Lessee

     (a)  Does not pay in full when due any and all installments of rent and/or
any other charge or payment herein reserved, included, or agreed to be treated
or collected, as rent and/or any other charge, expense, or cost herein agreed to
be paid by the Lessee; or

     (b)  Violates or fails to perform or otherwise breaks any covenant or
agreement herein contained; or

     (c)  Prior to giving thirty (30) days written notice to Lessor, vacates the
demised premises; or

     (d)  Becomes insolvent, or makes an assignment for the benefit of
creditors, or if a petition in bankruptcy is filed by or against the Lessee or a
bill in equity or other proceeding for the appointment of a receiver for the
Lessee is filed, or if proceedings for reorganization or for composition with
creditors under any State or Federal law is instituted by or against Lessee, or
if the real or personal property of the Lessee shall be sold or levied upon by
any Sheriff, Marshal or Constable;

     Then and in such an event if the default or failure to perform by Lessee
shall continue for more than two (2) working days following Lessee's receipt of
a written notice of default from Lessor, the:

          (1)  The rent for the entire unexpired balance of the term of this
Lease, as well as all other charges, payments, costs and expenses herein agreed
to be paid by the Lessee, or at the option of Lessor any part thereof, and also
all costs shall, in addition to any and all installments of rent already due and
payable and in arrears and/or any other charge or payment herein reserved,
included or agreed to be treated or collected as rent, and/or any other charge,
expense or cost herein agreed to be paid by the Lessee which may be due and
payable and in arrears, become due and payable and in arrears as if by the terms
and provisions of this Lease, the whole balance of unpaid rent and other
charges, payments, taxes, costs and expenses were on the date payable in
advance; and if this Lease or any part thereof is assigned, or if the premises
or any part thereof is sub-let, Lessee hereby irrevocably constitutes and
appoints Lessor as Lessee's agent to collect the rents due by such assignee or
sub-lessee and apply the same to the rent due hereunder without in any way
affecting Lessee's obligation to pay any unpaid balance of rent due hereunder;
or in the event of any of the foregoing at any time at the option of Lessor;

          (2)  This Lease and the terms hereby created shall terminate and
become absolutely void without any right on the part of the Lessee to save the
forfeiture by payment of any sum due or by other performance of any condition,
term or covenant broken; whereupon, Lessor shall be entitled to recover damages
for such breach in an amount equal to the amount of rent reserved for the
balance of the term of this Lease less the fair rental value actually received
by Owner of the said demised premises, for the residue of said term.

                                      -8-
<PAGE>

     13.  Ejectment.
          ---------

          When this Lease shall be determined by condition broken, either during
the original term of this Lease or any renewal or extension thereof, and also
when and as soon as the term hereby created or any extension thereof shall have
expired, it shall be lawful for any attorney as attorney for Lessee to file an
agreement for entering in any competent Court an amicable action and judgment in
ejectment against Lessee and all persons claiming under Lessee for the recovery
by Lessor of possession of the herein demised premises, for which this Lease
shall be his sufficient warrant, whereupon, if Lessor so desires, a writ of
possession may issue forthwith, without any prior proceedings whatsoever, and
provided that if for any reason after such action shall have been commenced the
same shall be terminated and the possession of the premises hereby demised
remain in or be restored to Lessee, Lessor shall have the right upon any
subsequent default or defaults, or upon the termination of this Lease as
hereinbefore set forth, to bring one or more amicable action or actions as
hereinbefore set forth to recover possession of the said premises.

     14.  Remedies Cumulative.
          -------------------

          All of the remedies herein before given to Lessor and all rights and
remedies given to it by law and equity shall be cumulative and concurrent.  No
termination of this Lease or the taking or recovering of the premises shall
deprive Lessor of any of its remedies or actions against the Lessee for rent due
at the time or which, under the terms hereof, would in the future become due as
if there has been no termination, or for sums due at the time or which, under
the terms hereof, would in the future become due as if there has been no
termination, nor shall the bringing of any action for rent or breach of
covenant, or the resort to any other remedy herein provided for the recovery of
rent be construed as a waiver of the right to obtain possession of the premises.

     15.  Condemnation.
          ------------

          In the event that the premises demised or any part thereof is taken or
condemned for a public or quasi-public use, this Lease shall, as to the part so
taken, terminate as of the date title shall vest in the condemn or, and rent
shall abate in proportion to the square feet of leased space taken or condemned
or shall case if the entire premises be so taken.  In either event the Lessee
waives all claims against the Lessor by reason of the complete or partial taking
of the demised premises.

     16.  Vacating Premises.
          -----------------

          The Lessee agrees to promptly vacate the premises at the termination
of the Lease term hereunder and any renewal thereof.

     17.  Security Deposit.
          ----------------

          The Lessee agrees to provide to the Lessor a security deposit in the
amount of $5,687.50 at or prior to the commencement date of this Lease.

                                      -9-
<PAGE>

     18.  Notices.
          -------

          All notices required hereunder shall be by registered mail addressed
to the parties as follows:

If to Lessor:

     Dauphin Associates, Inc.
     1830 S. 19th Street
     P.O. Box 2206
     Harrisburg, Pennsylvania 17105
     Attn: President

If to Lessee:

          QTL Corp.
          1353 Dayton St.
          Salinas, CA 93901
          Attn: President

     19.  Lease Contains All Agreements.
          -----------------------------

          It is expressly understood and agreed by and between the parties
hereto that this Lease sets forth all the promises, agreements, conditions and
understandings between Lessor and Lessee relative to the demised premises, and
that there are no promises, agreements, conditions or understandings, either
oral or written, between them other than are herein set forth.  It is further
understood and agreed that, except as herein otherwise provided, no subsequent
alteration, amendment, change or addition to this lease shall be binding upon
Lessor or Lessee unless reduced to writing and signed by them.

     20.  Successors and Assignees.
          ------------------------

          All rights and liabilities herein given to, or imposed upon, the
respective parties hereto shall extend to and bind the several and respective
successors and assigns of said parties.  No rights, however, shall inure to the
benefit of any assignee of Lessee unless the assignment to such assignee has
been approved by Lessor in writing as aforesaid.

     21.  Headings No Part of Lease.
          -------------------------

          Any headings preceding the text of the several paragraphs and
subparagraphs hereof are inserted solely for convenience of reference and shall
not constitute a part of this lease nor shall they affect its meaning,
construction, or effect.

                                      -10-
<PAGE>

     22.  Interpretation.
          ---------------

          This Lease shall be interpreted in accord with the laws of the
Commonwealth of Pennsylvania.

                                      -11-
<PAGE>
     IN WITNESS WHEREOF, the parties have hereto caused their authorized
officers to set their hands and the respective corporate seals the day and year
first above written.

ATTEST:                                 DAUPHIN ASSOCIATES, INC.

/s/ illegible                           By: /s/ illegible
----------------------                     ----------------------------

                                        Title: Executive Vice President
                                              -------------------------

ATTEST:

                                        ----------------------------

/s/ illegible                           By: /s/ R.C. Elliot
----------------------                     ----------------------------

                                        Title: President
                                              -------------------------

                                     -12-
<PAGE>

     2.   Rental Consideration.
          --------------------

          Lessee agrees to pay the Lessor rental consideration at the following
annual rates per year:

               1st Year (May 1, 1997 through April 30, 1998)..  $68,250
               2nd Year (May 1, 1998 through April 30, 1999)..  $68,250
               3rd Year (May 1, 1999 through April 30, 2000)..  $68,250
               4th Year (May 1, 2000 through April 30, 2001)..  $72,000
               5th Year (May 1, 2001 through April 30, 2002)..  $72,000

Rent shall be due and payable on the first day of each month of the Lease term
at the principal offices of Lessor at 1830 S. 19th Street, Harrisburg,
Pennsylvania, in lawful money of the United States of America, in the amount of
one-twelfth (1/12) of the yearly rental obligation.

     3.   Electricity; Additional Rent.
          ----------------------------

          Lessee agrees to pay as additional rent, in addition to the other
rentals set forth hereinabove, all bills submitted by Lessor for electrical
service or use including bills for connection or disconnection, and any and all
other sums which may become due by reason of the failure of Lessee to comply
with all of the covenants of this Lease and any and all damages, costs and
expenses which the Lessor may suffer or incur by reason of any default of the
Lessee or failure on its part to comply with the covenants of this Lease, and
each of them, and also any and all damages to the demised premises caused by any
act or neglect of Lessee.

     4.   Options to Renew.
          ----------------

          Lessee shall have five (5) one-year options to renew this Lease, each
of which is exercisable only if Lessee has complied with all the covenants of
this Lease and only if Lessor consents to the renewal. Lessee must give Lessor
60 days notice prior to the expiration of the then current lease year of its
intent to exercise each renewal option. Lessee agrees to pay the Lessor rental
consideration at the following annual rates per year.

          1st Renewal Year (May 1, 2002 through April 30, 2003)..  $77,250
          2nd Renewal Year (May 1, 2003 through April 30, 2004)..  $81,000
          3rd Renewal Year (May 1, 2004 through April 30, 2005)..  $81,000
          4th Renewal Year (May 1, 2005 through April 30, 2006)..  $84,750
          5th Renewal Year (May 1, 2006 through April 30, 2007)..  $84,750

Rent shall be due and payable on the first day of each month of each renewal
term at the principal offices of Lessor at 1830 S. 19th Street, Harrisburg,
Pennsylvania, in lawful money.

                                      -13-
<PAGE>

SUBLEASE AGREEMENT

     THIS SUBLEASE AGREEMENT (this "Lease" or "Sublease") is made this 14th day
of August 1999, by and between Earlychildhood.com LLC, a California limited
liability company maintaining offices at 2 Lower Ragsdale Drive, Suite 200,
Monterey, California 93940 (hereinafter referred to as "Sub-Lessor") and US
Office Products, Central Pennsylvania District, Inc., a Pennsylvania corporation
maintaining offices 601 Gibson Blvd. PO Box 1575, Harrisburg, PA 17105-1575
(hereinafter referred to as "Sub-Lessee.') and consented to by DAUPHIN
ASSOCIATES, INC., a Pennsylvania corporation maintaining offices at 1830 South
19th Street, Harrisburg, Dauphin County, Pennsylvania (hereinafter referred to
as "Owner").

                                  WITNESSETH:
                                  -----------

     WHEREAS, Sub-Lessor is the Lessee of certain premises in the nature of a
warehouse facility located at 1830 S 19th Street (Rear), Harrisburg, Dauphin
County, Pennsylvania pursuant to the terms of that certain Lease Agreement dated
January 24, 1997 between Owner and Sub-Lessor, as successor-in-interest to QTL
Corporation ("Prime Lease"); and

     WHEREAS, Sub-Lessor desires to demise and let unto Sub-Lessee and Sub-
Lessee desires to enter into a lease agreement with Sub-Lessor for all of the
aforesaid warehouse facility leased by Sub-Lessor as more specifically defined
hereinafter;

     NOW, THEREFORE, the parties hereto, intending to be legally bound hereby,
for and in consideration of the mutual promises and covenants hereinafter set
forth, and for other good and valuable consideration, receipt whereof is hereby
acknowledged, do hereby covenant and agree by and between themselves as follows:

     1.   Premises and Basic Terms.
          ------------------------

     Sub-Lessor does hereby demise and let unto Sub-Lessee 15,000 square feet of
warehouse space located at 1830 South 19th Street (Rear), Harrisburg, Dauphin
County, Pennsylvania, as designated on the schematic drawing attached hereto and
made a part hereof as Exhibit "A" (all of which area is hereinafter referred to
as the "Premises" or "demised premises") for the term of approximately two (2)
years and nine (9) months commencing on Aug. 14, 1999, and ending on April
30, 2002, for the rental consideration more specifically set forth hereinafter
in paragraph 2 of this.  Possession of the Premises shall begin on Aug. 14,
1999, which shall be the effective date of this Sublease.  Sub-Lessor agrees to
perform all of its obligations and duties as tenant under the Prime Lease in a
timely manner and to take no action or omission to terminate the Prime Lease
prior to its expiration.  Sub-Lessee shall have the right (but not the
obligation) to cure any default by Sub-Lessor under the Prime Lease and to
deduct from the rent due under this Sublease any and all amounts incurred by
Sub-Lessee in curing such default.

                                      -14-
<PAGE>

     2.   Rental Consideration.
          ---------------------

     Sub-Lessee agrees to pay the Sub-Lessor rental consideration at the
following annual rates per year:

<TABLE>
<S>        <C>                                                                 <C>               <C>
1st year   Effective Date through September 30, 2000).....................     $66,000           ($5500/month)
2nd Year   (August 1, 2000 through September 30, 2001)....................     $67,350           ($5612.50/month)
3rd Year   (August 1, 2001 through April 30, 2002)........................     $51,637.50        ($5737.50/month)
</TABLE>

     The above rates include a common area maintenance charge for the following:
heat, water, air conditioning, real estate taxes, fire insurance on the
structure, structural repairs over $100, HVAC repairs over $100, snow removal
and lawn maintenance.  Rent shall be due and payable on the first day of each
month of this Lease term at the principal offices of Sub-Lessor at 2 Lower
Ragsdale Drive, Suite 200, Monterey, CA 93940, in lawful money of the United
States of America, in the amount of one-twelfth (1/12) of the yearly rental
obligation.  All rent shall be prorated for any partial month.

     3.   Electricity; Additional Rent.
          ----------------------------

     Sub-Lessee agrees to pay as additional rent, in addition to the other
rentals set forth hereinabove, all bills submitted by Sub-Lessor for electrical
service or use to the Premises (which is separately metered) including bills for
connection or disconnection, and any and all other sums which may become due by
reason of the failure of Sub-Lessee to comply with all of the covenants of this
Lease and any and all damages, costs and expenses which the Sub-Lessor may
suffer or incur by reason of any default of the Sub-Lessee or failure on its
part to comply with the covenants of this Lease, and each of them, in each
instance after Sub-Lessee's failure to cure such default, and also any and all
damages to the demised premises caused by any act or neglect of Sub-Lessee.

     4.   Options to Renew.
          ----------------

     With respect to the Premises, Sub-Lessee shall have the same rights and
privileges under this Sublease as Sub-Lessor has under the Prime Lease.  Where
the exercise or existence of such rights under the Prime Lease are conditioned
upon the giving of notice to Owner, Sub-Lessee shall exercise such rights under
the Sublease by giving Sub-Lessor written notice of such exercise at least five
(5) days prior to the time specified thereto in the Prime Lease.  Sub-Lessor
will take all necessary or reasonable actions requested by Sub-Lessee to effect
the exercise of any such rights under the Prime Lease.

     5.   Affirmative Covenants of the Sub-Lessee.
          ---------------------------------------

     Sub-Lessee covenants and agrees that it will without demand:

                                      -15-
<PAGE>

          (a)  Payment of Rent.
               ---------------

     Pay the rent and all other charges herein reserved as rent on the days and
times and at the place that the same are made payable, without fail, and if Sub-
Lessor shall at any time or times accept said rent or rent charges after the
same shall have become due and payable, such acceptance shall not excuse delay
upon subsequent occasions, or constitute or be construed as a waiver of any of
Sub-Lessor's rights.

          (b)  Cleaning, Repairing, Etc.
               ------------------------

     Pay for trash removal and janitorial service and otherwise keep the demised
premises clean and free from all ashes, dirt and other refuse matter; replace
all glass windows or doors broken by Sub-Lessee and be responsible for repairs
of $100 or less and minor interior repairs; keep all waste and drain pipes
within the demised premises open; keep the Premises in good order and repair as
they now are, reasonable wear and tear and damage by accidental fire or other
casualty (i) not occurring through the negligence of Sub-Lessee or its employees
or agents or (ii) occurring through the negligence of Sub-Lessee or its
employees or agents but covered by Sub-Lessor's insurance excepted.  The Sub-
Lessee agrees to surrender the demised premises in the same condition in which
Sub-Lessee has herein agreed to keep the same during the continuance of this
Lease, reasonable wear and tear and damage by fire or other casualty excepted.

          (c)  Requirements of Public Authorities.
               ----------------------------------

     Comply with any requirements of any of the constituted public authorities,
and with the terms of any State or Federal statute or local ordinance or
regulation applicable to Sub-Lessee's use of the demised premises, and save Sub-
Lessor harmless from penalties, fines, costs or damages resulting from failure
so to do.

          (d)  Fire.
               ----

     Use reasonable precaution against fire.

          (e)  Surrender of Possession.
               -----------------------

     Peaceably deliver up and surrender possession of the demised premises to
the Sub-Lessor at the expiration or sooner termination of this Lease promptly
delivering to Sub-Lessor at its office all keys for the demised premises.

          (f)  Notice of Fire Etc.
               ------------------

     Give to Sub-Lessor prompt written notice of any accident, fire or damage
occurring on or to the demised premises.

                                      -16-
<PAGE>

     6.   Negative Covenants of Sub-Lessee.
          --------------------------------

     Sub-Lessee covenants and agrees that it will do none of the following
things without the consent in writing of Sub-Lessor first had and obtained, such
consent to not be unreasonably withheld by Sub-Lessor:

          (a)  Use of Premises.
               ---------------

     Occupy the demised premises in any manner or for any purpose other than for
the storage and distribution of office supplies and related products.

          (b)  Assignment and Subletting.
               -------------------------

     Assign, mortgage or pledge this Sublease or under-let or sublease the
demised premises, or any part thereof, or permit any other person, firm or
corporation to occupy the demised premises, or any part thereof; nor shall any
assignee or Sub-Lessee further assign, mortgage or pledge this Sublease or any
other such sublease, without an additional written consent by Sub-Lessor and the
Owner and without such consent, no such assignment mortgage or pledge shall be
valid.  Sub-Lessor shall not unreasonably withhold its consent.  If the Sub-
Lessee becomes insolvent, or makes an assignment for the benefit of creditors,
or if a petition in bankruptcy is filed by or against the Sub-Lessee, and such
petition is not dismissed within 60 days, or a bill in equity or other
proceeding for the appointment of a receiver for the Sub-Lessee is filed, or if
the real or personal property of the Sub-Lessee shall be sold or levied upon by
any Sheriff, Marshal or Constable, the same shall be a violation of this
covenant.  Notwithstanding the foregoing, Sub-Lessee may assign this Sublease to
a wholly-owned subsidiary of U.S. Office Products Company without the consent of
Sub-Lessor or Owner so long as such assignee agrees to assume and be bound by
the terms of this Sublease and has the financial creditworthiness at least equal
to Sub-Lessee.

          (c)  Signs.
               -----

     Place or allow to be placed any stand, booth, sign or show case upon the
doorsteps, vestibules or outside walls or pavements of said premises, or paint,
place, erect or cause to be painted, placed or erected any sign, projection or
devise on or in any part of the premises.  Sub-Lessee shall remove any sign,
projection or devised painted, placed or erected, if permission has been
granted, and restore the walls, etc to their former conditions, at or prior to
the expiration of this Lease.  In case of the breach of this covenant (in
addition to all other remedies given to Sub-Lessor in case of the breach of any
conditions or covenants of this Lease) Sub-Lessor shall have the privilege of
removing said stand, booth, sign, showcase, projection or device, and restoring
said walls, etc., to their former condition, and Sub-Lessee, at Sub-Lessor's
option, shall be liable to Sub-Lessor for any and all expenses so incurred by
Sub-Lessor.  Notwithstanding the foregoing, Sub-Lessee shall have the right to
place a sign above the dock doors and on the man door from the docks, so long as
such signs are not illuminated and in compliance with all applicable laws and
regulations.

                                      -17-
<PAGE>

          (d)  Alterations, Improvements.
               -------------------------

     Make any alterations or improvements to the demised premises.  In the event
such alterations and improvements are made with Sub-Lessor's consent, all such
alterations and improvements shall remain the property of Sub-Lessor on the date
of termination of this Lease or at the option of Sub-Lessor, determined at the
time consent is granted, shall be removed by Sub-Lessee at Sub-Lessee's expense
upon termination.

          (e)  Machinery.
               ---------

     Use or operate any machinery that is harmful to the building or Owner's
employees.

          (f)  Weights.
               -------

     Place any weights in any portion of the demised premises beyond the safe
carrying capacity of the structure.

          (g)  Fire Insurance.
               --------------

     Do or suffer to be done, any act, matter or thing objectionable to the fire
insurance companies whereby the fire insurance or any other insurance now in
force or hereafter to be placed on the demised premises, or any part thereof, or
on the building of which the demised premises may be a part, shall become void
or suspended, or whereby the same shall be rated as a more hazardous risk than
at the date of execution of this Sublease, or employ any person or persons
objectionable to the fire insurance companies or carry explosive matter of any
kind (other than customary office and cleaning supplies in accordance with all
applicable environmental, health, and safety laws) in and about the demised
premises.

          (h)  Removal of Goods.
               ----------------

     Remove, attempt to remove or manifest an intention to remove Sub-Lessee's
goods or property from or out of the demised premises otherwise than in the
ordinary and usual course of business, without having first provided notice to
Sub-Lessor.

          (i)  Vacate Premises.
               ---------------

     Without providing Sub-Lessor prior written notice, vacate or desert said
premises during the term of this Lease, or permit the same to be empty and
unoccupied.

     7.   Sub-Lessor's Rights.
          -------------------

     Sub-Lessee covenants and agrees that Sub-Lessor shall have the right to do
the following things and matters in and about the demised premises:

                                      -18-
<PAGE>

          (a)  Inspection of Premises.
               ----------------------

     At all reasonable times, upon reasonable notice, by itself or its duly
authorized agents to go upon and inspect the demised premises and every part
thereof, and/or at its option to make repairs, alterations and additions to the
demised premises or the building of which the demised premises is a part;
provided that Sub-Lessor agrees to use its reasonable best efforts to minimize
any disruption to Sub-Lessee's business operations.

          (b)  Sale or Rent Sign - Prospective Purchases or Tenants.
               ----------------------------------------------------

     To display a "For Sale" sign at any time, and also, after notice from
either party of intention to terminate this Sublease, or at any time within
three months prior to the expiration of this Sublease, a "For Rent" sign, or
both "For Rent" and "For Sale" signs; and all of said signs shall be placed upon
such part of the Premises as Owner or Sub-Lessor shall require.  Prospective
purchasers or tenants authorized by Owner or Sub-Lessor may inspect the Premises
at reasonable hours, upon reasonable notice.

     8.   Insurance.
          ---------

     Sub-Lessee shall, at Sub-Lessee's expense, obtain and keep in force during
the term of this Sublease a policy of Combined Single Limit, Bodily Injury and
Property Damage insurance insuring Sub-Lessor and Sub-Lessee against any
liability arising out of Sub-Lessee's use or occupancy of the Premises and all
areas appurtenant thereto.  Such insurance shall be a combined single limit
policy in an amount not less than One Million ($1,000,000) Dollars.  The policy
shall contain cross liability endorsements and shall insure performance by Sub-
Lessee of the indemnity provisions of Paragraph 9(c).  The limits of said
insurance shall not, however, limit the liability of Sub-Lessee hereunder.  In
the event that the premises constitute a part of a larger property said
insurance shall have a Sub-Lessor's Protective Liability endorsement attached
thereto.  If Sub-Lessee shall fail to procure and maintain said insurance Sub-
Lessor may, but shall not be required to, procure and maintain the same, but at
the expense of Sub-Lessee.

     9.   Further Insurance.
          -----------------

          (a)  Property Insurance.
               ------------------

     Sub-Lessor shall obtain and keep in force during the term of this Lessee a
policy or policies of insurance covering loss or damage to the premises, but not
Sub-Lessee's fixtures, equipment, tenant improvements or tenant inventories, in
the amount of the full replacement value thereof, providing protection against
all perils included within the classification of fire, extended coverage,
vandalism, malicious mischief special extended perils (all risk) but not plate
glass insurance.  In the event that the Premises contains sprinklers then the
insurance coverage shall include sprinkler leakage insurance.

                                      -19-
<PAGE>

          (b)  Insurance Policies.
               ------------------

     Insurance required hereunder shall be in companies holding a "General
Policyholders Rating" of B-plus or better as set forth in the most current issue
of "Best Insurance Guide".  Sub-Lessee shall deliver to Sub-Lessor certificates
evidencing the existence and amounts of such insurance described in Paragraph 8.
No such policy shall be cancelable except after ten (10) days' prior written
notice to Sub-Lessor and Sub-Lessee.  Neither Sub-Lessor nor Sub-Lessee shall do
or permit to be done anything that shall invalidate the required insurance
policies.

          (c)  Indemnity.
               ---------

     Sub-Lessee shall indemnify and hold harmless Sub-Lessor from and against
any and all claims arising from Sub-Lessee's use of the Premises, or from the
conduct of Sub-Lessee's business or from any activity, work or things done,
permitted or suffered by Sub-Lessee in or about the Premises and shall further
indemnify and hold harmless Sub-Lessor from and against any and all claims
arising from any breach or default in the performance of any obligation on Sub-
Lessee's part to be performed under the terms of this Lease, or arising from any
negligence of the Sub-Lessee, or any of Sub-Lessee's agents, contractors, or
employees, and from and against all costs, reasonable attorney's fees, expenses
and liabilities incurred in the defense of any such claim or any action or
proceeding brought thereon; and in case any action or proceeding be brought
against Sub-Lessor by reason of any such claim Sub-Lessee, upon notice from Sub-
Lessor, shall defend the same at Sub-Lessee's expense.

          (d)  Release and Waiver of Subrogation.
               ---------------------------------

     Sub-Lessor and Sub-Lessee each hereby release all causes of action and
rights of recovery against each other and their respective agents, officers, and
employees for any loss, regardless of cause or origin, to the extent of any
recovery to either party from any policy(s) of insurance carried or required to
be carried hereunder.  Sub-Lessor and Sub-Lessee agree that any policies
presently existing or obtained on or after the date hereof (including renewals
of present policies) shall include a clause or endorsement to the effect that
any such release shall not adversely affect or impair said policies or prejudice
the right of the releasor to recover thereunder.

     10.  Responsibility of Sub-Lessor.
          ----------------------------

          (a)  Total Destruction of Premises.
               -----------------------------

     In the event that the demised premises is totally destroyed or so damaged
by fire or other casualty not occurring through the negligence of Sub-Lessee or
its employees or agents or (ii) occurring through the negligence of Sub-Lessee
or its agents or employees but covered by Sub-Lessor's insurance, that the same
cannot be repaired or restored within a reasonable time, this Sublease shall
absolutely cease and terminate, and the rent shall abate for the balance of the
term and the security deposit and any prepaid rents shall be returned to Sub-
Lessee.

                                      -20-
<PAGE>

          (b)  Partial Destruction of Premises.
               -------------------------------

     If the damage caused as above be only partial and such that the Premises
can be restored to their then condition within a reasonable time, the Sub-Lessor
shall restore the same with reasonable promptness, reserving the right to enter
upon the demised premises for that purpose.  The Sub-Lessor also reserves the
right to enter upon the demised premises whenever necessary to repair damage
caused by fire or other casualty to the building of which the demised premises
is a part, even though the effect of such entry be to render the demised
premises or a part thereof untenantable.  In either event the rent shall be
apportioned and suspended during the time the Sub-Lessor is in possession raking
into account the proportion of the demised premises rendered untenantable and
the duration of the Sub-Lessor's possession.  If the damage caused as above be
only partial, and such that the same cannot be repaired or restored within a
reasonable time, this Sublease shall absolutely cease and terminate, and the
rent shall abate for the balance of the term and the security deposit and
prepaid rents shall be returned to Sub-Lessee.

          (c)  Repair by Sub-Lessor.
               --------------------

     Sub-Lessor shall repair the Premises or terminate this Lease by giving
notice thereof to Sub-Lessee within thirty (30) days from the day Sub-Lessor
received notice that the demised premises had been destroyed or damaged by fire
or other casualty and shall promptly and diligently pursue such repairs to
completion.

          (d)  Damage for Interruption of Use.
               ------------------------------

     Sub-Lessor shall not be liable for any damage, compensation or claim by
reason of inconvenience or annoyance arising from the necessity of repairing any
portion of the building, the interruption in the use of the Premises, or the
termination of this Lease by reason of the destruction of the Premises.

          (e)  Representation of Condition of Premises.
               ---------------------------------------

     The Sub-Lessor has let the demised premises in their present condition and
without any representations on the part of the Sub-Lessor, its officers,
employees, servants and/or agents; however, the Sub-Lessor represents that the
Premises and its systems comply with all applicable laws and are in good working
order and repair.

     11.  Structural Maintenance; Heat.
          ----------------------------

     Owner shall be responsible for all structural maintenance of the demised
premises as well as maintenance of the heating, ventilation and air conditioning
equipment.  Sub-Lessor shall supply heat for the demised premises as currently
provided at no charge to Sub-Lessee.

                                      -21-
<PAGE>

     12.  Truck Access.
          ------------

     Sub-Lessee shall have access to the rear of the demised premises at two (2)
loading docks for delivery and pickup truck traffic.  Under no circumstances
shall Sub-Lessee disrupt parking facilities provided for Owner's employees.

     13.  Remedies of Sub-Lessor.
          ----------------------

     If the Sub-Lessee:

          (a)  Does not pay in full when due any and all installments of rent
and/or any other charge or payment herein reserved, included or agreed to be
treated or collected, as rent and/or any other charge, expense, or cost herein
agreed to be paid by the Sub-Lessee; or

          (b)  Violates or fails to perform or otherwise breaks any covenant or
agreement herein contained; or

          (c)  Prior to giving thirty (30) days written notice to Sub-Lessor,
vacates the demised premises; or

          (d)  Becomes insolvent, or makes an assignment for the benefit of
creditors, or if a petition in bankruptcy is filed by or against the Sub-Lessee,
and such petition is not dismissed within 60 days, or a bill in equity or other
proceeding for the appointment of a receiver for the Sub-Lessee is filed, or if
proceedings for reorganization or for composition with creditors under any State
or Federal law is instituted by or against Sub-Lessee, and such proceedings are
not dismissed within 60 days, or if the real or personal property of the Sub-
Lessee shall be sold or levied upon by any Sheriff, Marshal or Constable;

     Then and in such an event if the default or failure to perform by Sub-
Lessee shall continue for more than two (2) working days (for a monetary
default) or thirty (30) calendar days (for a non-monetary default) following
Sub-Lessee's receipt of a written notice of default from Sub-Lessor:

               (1)  The rent for the entire unexpired balance of the term of
     this Sublease, as well as all other charges, payments, costs and expenses
     herein agreed to be paid by the Sub-Lessee, or at the option of Sub-Lessor
     any part thereof and also all costs shall, in addition to any and all
     installments of rent already due and payable and in arrears and/or any
     other charge or payment herein reserved, included or agreed to be treated
     or collected as rent, and/or any other charge, expense or cost herein
     agreed to be paid by the Sub-Lessee which may be due and payable and in
     arrears, become due and payable and in arrears as if by the terms and
     provisions of this Sublease, the whole balance of unpaid rent and other
     charges, payments, taxes, costs and expenses were on the date payable in
     advance; and if this Sublease or any part thereof is assigned, or if the
     premises or any part thereof is sublet Sub-Lessee hereby irrevocably
     constitutes and appoints Sub-Lessor as Sub-Lessee's agent to collect the
     rents due by such assignee or Sub-Lessee and apply the same to the rent due
     hereunder without in any way affecting Sub-Lessee's obligation to

                                      -22-
<PAGE>

     pay any unpaid balance of rent due hereunder; or in the event of any of the
     foregoing at any time at the option of Sub-Lessor;

               (2)  This Sublease and the terms hereby created shall terminate
     and become absolutely void without any right on the part of the Sub-Lessee
     to save the forfeiture by payment of any sum due or by other performance of
     any condition, term or covenant broken; whereupon, Sub-Lessor shall be
     entitled to recover damages for such breach in an amount equal to the
     amount of rent reserved for the balance of the term of this Lease less the
     fair rental value actually received by Sub-Lessor for the residue of said
     term.

     14.  Ejectment.
          ---------

     When this Lease shall be determined by condition broken, either during the
original term of this Lease or any renewal or extension thereof and also when
and as soon as the term hereby created or any extension thereof shall have
expired, it shall be lawful for any attorney as attorney for Sub-Lessee to file
an agreement for entering in any competent court an amicable action and judgment
in ejectment against Sub-Lessee and all persons claiming under Sub-Lessee for
the recovery by Owner or Sub-Lessor of possession of the herein demised
premises, for which this Lease shall be his sufficient warrant, whereupon, if
Owner or Sub-Lessor so desires, a writ of possession may issue forthwith,
without any prior proceedings whatsoever, and provided that if for any reason
after such action shall have been commenced the same shall be terminated and the
possession of the Premises hereby demised remain in or be restored to Sub-
Lessee, Owner or Sub-Lessor shall have the right upon any subsequent default or
defaults, or upon the termination of this Lease as hereinbefore set forth, to
bring one or more amicable action or actions as hereinbefore set forth to
recover possession of the said Premises.

     15.  Remedies Cumulative.
          -------------------

     All of the remedies herein before given to Sub-Lessor and all rights and
remedies given to it by law and equity shall be cumulative and concurrent.  No
termination of this Sublease or the taking or recovering of the Premises shall
deprive Sub-Lessor of any of its remedies or actions against the Sub-Lessee for
rent due at the time or which, under the terms hereof, would in the future
become due as if there has been no termination or for sums due at the time or
which under the terms hereof, would in the future become due as if there has
been no termination nor shall the bringing of any action for rent or breach of
covenant, or the resort to any other remedy herein provided for the recovery of
rent be construed as a waiver of the right to obtain possession of the Premises.

     16.  Condemnation.
          ------------

     In the event that the demised premises or any part thereof is taken or
condemned for a public or quasi-public use, this Lease shall, as to the part so
taken, terminate as of the date title shall vest in the condemnor, and rent
shall abate in proportion to the square feet of leased space taken or condemned
or shall case if the entire Premises be so taken.  In either event the Sub-
Lessee waives all claims against the Sub-Lessor by reason of the complete or
partial taking of the

                                      -23-
<PAGE>

demised premises relating to the leasehold, but not to Sub-Lessee's property or
improvements, moving or relocation costs.

     17.  Vacating Premises.
          -----------------

     The Sub-Lessee agrees to promptly vacate the Premises at the termination of
the Lease term hereunder and any renewal thereof.

     18.  Security Deposit.
          ----------------

     The Sub-Lessee agrees to provide to the Sub-Lessor a security deposit in
the amount of $5,500.00 at or prior to the commencement date of this Lease.
Said sum shall be held by Sub-Lessor as security for the faithful performance by
Sub-Lessee of all the terms, covenants and conditions of this Sublease to be
kept and performed by Sub-Lessee and not as an advance rental deposit or as a
measure of Sub-Lessors damage in case of Sub-Lessee's default.  If Sub-Lessee
defaults with respect to any provision of this Sublease, Sub-Lessor may use any
part of this security deposit for the payment of any rent or any other sum in
default, or to compensate Sub-Lessor for any other loss or damage which Sub-
Lessor may incur, spend or become obligated to spend by reason of Sub-Lessee's
default, or to compensate Sub-Lessor for any other loss or damage which Sub-
Lessor may suffer by reason of Sub-Lessee's default.  If any portion is so used,
Sub-Lessee shall within five (5) days after written demand therefor, deposit
with Sub-Lessor an amount sufficient to restore the security deposit to its
original amount.  Sub-Lessee's failure to do so shall be a material breach of
this Sublease.  If Sub-Lessee shall fully and faithfully perform every provision
of this Sublease to be performed by it, the security deposit or any balance
thereof shall be returned after termination of this Sublease when Sub-Lessor
shall have reasonably determined that all of Sub-Lessee's obligations have been
fulfilled.

     19.  Notices.
          -------

     All notices required hereunder shall be by registered mail, return receipt
requested, addressed to the parties as follows:

     If to Owner:

          Dauphin Associates, Inc.
          1830 S.19th Street
          P.O. Box 2206
          Harrisburg, Pennsylvania 17105
          Attn:  President

     If to Sub-Lessee:

          US Office Products, Central Pennsylvania District, Inc.
          601 Gibson Blvd.
          PO Box 1575 Harrisburg, PA 17105-1575
          Attn: David Snider

                                      -24-
<PAGE>

          US Office Products Company
          1025 Thomas Jefferson St. NW
          Suite 600 East
          Washington, D.C. 20007
          Attention: General Counsel

     If to Sub-Lessor:

          Earlychildhood.com LLC
          2 Lower Ragsdale Drive, Suite 200
          Monterey, CA 93940
          Attn: Ronald Elliott - President

          Law Office of Michael Gaitley
          351 California Street, Suite 700
          San Francisco, CA 94104

     20.  Lease Contains All Agreements.
          -----------------------------

     It is expressly understood and agreed by and between the parties hereto
that this Sublease sets forth all the promises, agreements, conditions and
understandings between Owner, Sub-Lessor and Sub-Lessee relative to the sublease
by Sub-Lessee of the demised premises, and that there are no promises,
agreements, conditions or understandings, either oral or written, between them
on such subject matter other than are herein set forth.  It is further
understood and agreed that, except as herein otherwise provided, no subsequent
alteration, amendment, change or addition to this Sublease shall be binding upon
Sub-Lessor or Sub-Lessee unless reduced to writing and signed by them.

     21.  Successors and Assignees.
          ------------------------

     All rights and liabilities herein given to, or imposed upon, the respective
parties hereto shall extend to and bind the several and respective successors
and assigns of said parties.  No rights, however, shall inure to the benefit of
any assignee of Sub-Lessee unless the assignment to such assignee has been
approved by Sub-Lessor and Owner in writing as aforesaid, or is otherwise
permitted under the terms of paragraph 6(b) hereof.

     22.  Headings No Part of Lease.
          -------------------------

     Any headings preceding the text of the several paragraphs and subparagraphs
hereof are inserted solely for convenience of reference and shall not constitute
a part of this Sublease nor shall they affect its meaning, construction, or
effect.

     23.  Interpretation.
          --------------

                                      -25-
<PAGE>

     This Lease shall be interpreted in accord with the laws of the Commonwealth
of Pennsylvania.

     24.  Quiet Enjoyment.
          ---------------

          (a)  Sub-Lessor covenants that it has the right to make this Sublease
for the term aforesaid, and that if Sub-Lessee shall pay the rent and perform
all of the covenants, terms, and conditions, and agreements of this Sublease to
be performed by Sub-Lessee, Sub-Lessee shall, during the term hereof, freely,
peaceably, and quietly occupy and enjoy the full possession of the demised
premises without molestation, hindrance, or ejection by Sub-Lessor.

          (b)  Sub-Lessor covenants not to take any action or fail to take any
action under the terms of the Prime Lease which would in any way preclude or
diminish the full enjoyment of any and all privileges of Sub-Lessee under the
terms of this Sublease.  In furtherance of the foregoing, the Sub-Lessor hereby
appoints Sub-Lessee as its attorney-in-fact to exercise any options or rights
granted to Sub-Lessor under the terms of the Prime Lease.  The foregoing
appointment of Sub-Lessee as Sub-Lessor's attorney-in-fact shall be deemed to be
a power coupled with an interest and irrevocable.  Sub-Lessor shall not in any
way modify the provisions of the Prime Lease or exercise any of the rights or
privileges thereunder without Sub-Lessee's prior written consent.

     IN WITNESS WHEREOF, the parties have hereto caused their authorized
officers to set their hands and the respective corporate seals the day and year
first above written.

WITNESS:                            EARLYCHILDHOOD.COM LLC

/s/ Allison Craig                   /s/ Ronald Elliott
-------------------------           -------------------------
                                    By:  Ronald Elliott
                                    President

WITNESS:                            US OFFICE PRODUCTS, CENTRAL PENNSYLVANIA
                                    DISTRICT, INC.

/s/ illegible
-------------------------           By: /s/ illegible
                                       ----------------------------
                                    Title: Vice President
                                          -------------------------

                                      -26-
<PAGE>

                                  EXHIBIT "A"
                                  -----------

                                   Premises
                                   --------

                                      -27-
<PAGE>

[COMPANY LOGO APPEARS HERE]

     August 17, 1999

     QTL Corporation
     Attn: President
     1353 Dayton St.
     Salinas, CA 93901

          Re:  Lease of Warehouse Space
               1830 S. 19/th/ St., Harrisburg, PA

     Dear Sir:

     Pursuant to the terms of our lease agreement dated January 24, 1997 for
     subject property, in particular to paragraph 5.(b), we consent to your
     subleasing the space to U.S. Office Products, Central Pennsylvania
     District, Inc. on or about September 1, 1999. We request that you send us
     a copy of the sublease agreement after it has been executed.

     This consent does not change any terms of the lease agreement between QTL
     and Dauphin Associates, nor does it relieve QTL of any obligations under
     the lease. QTL will continue to make payments to Dauphin through the
     balance of the lease term.

     Sincerely,

     /s/ Joseph D. Canfield
     Executive Vice President

     Cc: Mr. Mike Alderman--CIR

                                     -28-<PAGE>

                                                                   Exhibit 10.23

                           INDEX TO LEASE AGREEMENT
                           ------------------------

ARTICLE I       LEASED PREMISES

ARTICLE II      TERMS OF LEASE

ARTICLE III     BASIC MONTHLY RENT

ARTICLE IV      SECURITY DEPOSIT

ARTICLE V       USE OF LEASED PREMISES

ARTICLE VI      IMPROVEMENTS BY LESSOR

ARTICLE VII     SIGNS

ARTICLE VIII    ALTERATIONS BY LESSEE

ARTICLE IX      MAINTENANCE AND REPAIR

ARTICLE X       MAINTENANCE OF COMMON AREA

ARTICLE XI      TAXES AND OTHER IMPOSITIONS

ARTICLE XII     UTILITIES

ARTICLE XIII    INSURANCE AND DAMAGES

ARTICLE XIV     LESSEE'S PROPERTY

ARTICLE XV      ACCESS TO LEASED PREMISES

ARTICLE XVI     QUIET ENJOYMENT

ARTICLE XVII    ESTOPPEL CERTIFICATE; SUBORDINATION; ATTORNMENT

ARTICLE XVIII   EVENTS OF DEFAULT; LESSOR'S REMEDIES AND DAMAGES

ARTICLE XIX     INDEMNIFICATION; SUBROGATION

ARTICLE XX      NO WAIVER

ARTICLE XXI     EMINENT DOMAIN

<PAGE>

ARTICLE XXII    RENT ADJUSTMENT FORMULA

ARTICLE XXIII   OPTION TO RENEW

ARTICLE XXIV    ASSIGNMENT AND SUBLETTING

ARTICLE XXV     SURRENDER

ARTICLE XXVI    MISCELLANEOUS

ARTICLE XXVII   BINDING CLAUSE

ARTICLE XXVIII  NOTICE TO SELL

<PAGE>

This LEASE AGREEMENT (hereinafter referred to as "Lease") (hereinafter referred
to as "Lease") made on this 23 day of November, 1998, by and between Robert M.
Mumma, II, G.R.A.T., having offices at Box E, McCormick Road, Bowmansdale,
Pennsylvania, (hereinafter referred to as "Lessor") and QTL Corporation, having
offices at 1353 Dayton Street, Salinus, CA, 93962, (hereinafter referred to as
"Lessee").

     WHEREAS, the Lessor wishes to lease to the Lessee and the Lessee wishes to
lease from the Lessor, that certain portion of the premises herein described in
"Exhibit A".

     INTENDING TO BE LEGALLY BOUND HEREBY, the Lessor and the Lessee agree as
follows:
                          ARTICLE I -- LEASED PREMISES

     1.   The Lessor leases to the Lessee and the Lessee leases from the Lessor
that certain portion (hereinafter referred to as the "Leased Premises") of a
building (hereinafter referred to as the "Building'") as designated on the site
plan (Exhibit B), construction drawings (Exhibit C), specification (Exhibit D),
leasehold improvements by Lessor/Lessee (Exhibit E), and rendering (Exhibit F) ,
hereafter to be erected at 1520 Bobali Drive, Harrisburg, Pennsylvania, 17104
(hereinafter referred to as the "Center"` or "Entire Premises") located in
Swatara Township, Dauphin County, Pennsylvania, the leased premises containing
50,000 square feet of net rentable floor space, with the leased premises being
measured from the outside building line of each wall of the leased premises or,
in the case of those walls separating the leased premises from the other
portions of the building, down the center lines of such walls, together with the
right to the nonexclusive use in common with others to use some of all such
automobile parking areas, corridors and pathways and other facilities as may be
designated by Lessor from time to time as more fully set forth in and subject to
the terms and conditions of this Lease, and to such rules and
<PAGE>

                                      -2-

regulation for the use thereof as may be prescribed from time to time by the
Lessor in accordance with this Lease.

     1.   The term (hereinafter referred to as the "Term") of this Lease shall
be for a period of ten (10) years, and shall commence on the earlier of the
following dates: (1) the date which is one (1) day after the Lessor or the
Lessor's supervising architect or agent notifies Lessee in writing that the
Lessor has substantially completed all of the improvements (hereinafter referred
to as "Improvement") required to be constructed pursuant to this Lease and a
certificate of occupancy has been issued by the issuing authority, or (2) the
date on which the Lessee takes possession of the Leased Premises, whichever
shall first occur. However, Lessor represents to Lessee that occupancy will take
place no later than June 1, 1999.

     2.   Immediately upon demand therefor, the Lessee shall deliver to the
Lessor a statement acknowledging the date upon which the Term commenced, which
statement shall be in form and substance satisfactory to the Lessor.

     3.   Notwithstanding anything to the contrary, in no event shall the Term
extend beyond ten (10) years from commencement. ( Except to the extent permitted
by the terms of this Lease).

     4.   Except to the extent permitted by the terms of this Lease, in the
event that the Lessee shall continue to occupy the Leased Premises beyond the
Term hereof and the Lessor elects to accept rent therefor, a tenancy at will
from month to month only shall be created and no tenancy for any longer period
of time shall be deemed to exist.

                       ARTICLE III -- BASIC MONTHLY RENT

     1.   The Lessee shall pay to the lessor as basic monthly rent (hereinafter
referred to as "Basic Monthly Rent") for the Leased Premises the sum of Fifteen
Thousand Six Hundred
<PAGE>

                                      -3-

Twenty Five Dollars ($15,625.00), all in advance, on the first day of every
calendar month during the Term hereof without deduction or setoff (except as
otherwise permitted herein). In the event that the Term of the Lease shall
commence or end on a day other than the first of the month, the Lessee shall pay
for such time period minimum rental equal to one-thirtieth (1/30th) of the Basic
Monthly Rent multiplied by the number of rental days of such fractional month.

                         ARTICLE IV -- SECURITY DEPOSIT

     1.   Concurrently with the execution of the Lease, the Lessee shall deposit
with the Lessor the sum of Fifteen Thousand Six Hundred Twenty-five Dollars
($15,625.00) as security for the full, timely and faithful observance and
performance by the Lessee of the provisions of this Lease on the part of Lessee
to be observed or performed. The said security deposit (hereinafter referred to
as the "Security Deposit") shall be held by the Lessor throughout the Term
hereof and the Lessee shall not be entitled to interest thereon.

     2.   If at any time during the term, a default by the Lessee (hereinafter
referred to as "Default by Lessee ) shall occur by reason of the failure of the
Lessee to make a prompt payment when due of Basic Monthly Rent or additional
rent (hereinafter referred to as "Additional Rent") or any other sum owing by
the Lessee to the Lessor, then the Lessor may appropriate and apply any portion
of the Security Deposit as may be necessary to the payment of the overdue Basic
Monthly Rent, Additional Rent or any other sum owing by the Lessee to the
Lessor.

     3.   If on the termination of the tenancy of the Lessee or for any other
reason, the Lessee does not leave the Leased Premises in the same condition
which they existed at the beginning of the term, reasonable wear and tear
excepted, then, in addition to any and all other rights as remedies of which the
Lessor may be possessed, the Lessor may appropriate and apply
<PAGE>

                                      -4-

any portion of the security Deposit, as may be reasonably necessary to return
the Leased Premised to such condition.

     4.   Any remaining Security Deposit not so applied pursuant to paragraphs 2
and 3 of this Article shall be returned by Lessor to Lessee without demand,
without interest, within thirty (30) days after the end of the Term.

     5.   The Lessee acknowledges that the Security Deposit is not to be
considered as the final Basic Monthly Rent.

     6.   The Lessor may deliver the Security Deposit to any purchaser of
Lessor's interest in the Leased Premises, in the event that such interest is
sold, and thereupon Lessor shall be discharged from any further liability with
respect to such Security Deposit, and Lessee agrees to look solely to such
purchaser for the return of such Security Deposit.

                      ARTICLE V -- USE OF LEASED PREMISES

     1.   The Leased Premises shall be occupied and used for warehousing,
wholesale and retail sales, if applicable, offices for administration and sales,
including the purposes of warehousing, distribution, and manufacturing Lessee's
full range of products similar and/or equal to current production and/or
warehousing facilities located at 1830 S. 19th Street, Harrisburg, Pennsylvania,
17104, or any other legal use so long as all products stored conform to all
state and federal regulation pertaining to the storage, maintenance or
possession of products defined as toxic under applicable standards. Lessee
agrees that it will not store, possess or dispose of any product in other than
the manner prescribed by applicable regulations.

     2.   The Lessee covenants and warrants to the Lessor:

          a.  Not to use the Leased Premises or permit the Leased Premises to be
used for any unlawful purpose or any purpose not specifically permitted by this
Lease.
<PAGE>

                                      -5-

          b.  Not to use or occupy or suffer or permit the Leased Premises or
any part thereof to be used or occupied in any manner so as to increase the cost
of fire or other casualty insurance over and above the normal cost of such
insurance for the type and location of the Building or contrary to the Lease.

          c.  Not to display any merchandise or other items outside the Leased
Premises nor in any way obstruct the sidewalks adjacent thereto.

          d.  Not to place garbage, rubbish, trash or containers thereof outside
the Leased Premises except in such containers, if any, which the Lessee shall
have provided for such purpose with the approval of the Lessor.

          e.  To load and unload all merchandise and other items and to cause
the collection of garbage, rubbish and trash through such doors, if any, of the
Leased Premises as the Lessor shall have designated for such purpose.

          f.  To keep the Leased Premises in a good, safe, clean and proper
condition.

          g.  To prevent the Leased Premises form being used in any way which
shall injure or damage the same or the Building or which may be or result in a
nuisance, annoyance, inconvenience or damage to the other tenants of the
Building.

          h.  To abide by all reasonable rules and regulations established by
Lessor, from time to time, with respect to the Building, provided, however, that
no such rules or regulations shall prohibit or unreasonably hinder the use of
the Leased Premises for the purpose referred to in this Article not interfere
with Lessee's right to quiet enjoyment of the premise.

                      ARTICLE VI -- IMPROVEMENTS BY LESSOR

     1.   The Lessor shall construct the Leased Premises incorporating in such
construction all items of work in accordance with the plans and specifications
set forth in Exhibit B, C, D, E
<PAGE>

                                      -6-

and F (except for Tenant leasehold improvements). Lessor agrees to complete
construction to permit occupancy by Lessee on May 1, 1999.

     2.  Lessor shall have the exclusive right to determine the architectural
design and the structural, mechanical and other standard details and
specifications of the Improvements, including, but not limited to, the type of
materials and the manufacturer and supplier thereof. All construction by Lessor
shall be done in a good and workmanlike manner and in accordance with all
building and fire codes.

     3.  In the event that the Lessor shall be unable to complete the
Improvements so that the Premises are fully usable by lessee for its intended
production and/or distribution, Lessee shall not be liable for any Basic Monthly
Rent, Additional Rent or other amount herein reserved until such time as the
Lessor shall deliver possession of the leased Premises to the Lessee in said
condition, subject to the provisions hereinafter set forth.

                              ARTICLE VII -- SIGNS

     1.  Subject to the provisions hereof the lessee as part of this Lease will
erect a sign (hereinafter referred to as the "Sign") conforming to those signs
already placed (hereinafter referred to as "Sign") on the exterior portion of
the Building. The design for and size of the Sign together with the location
will be at the discretion of Lessor. The Lessee, will have the right to
designate the proper name to be inserted. Size, shape, color and style of
letters to be at the discretion of Lessor.

                     ARTICLE VIII -- ALTERATIONS BY LESSEE

     1.  The Lessee shall not make or permit to be made any alteration,
improvements or additions (hereinafter collectively referred to as
"Alterations") to the Leased Premises or any part thereof without first
obtaining the written consent in writing of the Lessor. The Lessor shall not
<PAGE>

                                      -7-

be required to give such consent which shall not be unreasonably withheld and in
the event that the Lessor shall give such consent, such consent may be
conditioned upon the fulfillment of such requirements as the Lessor shall
determine. All Alterations to the Leased Premises shall be made in accordance
with all applicable laws and governmental rules and regulations and shall
immediately become the property of the Lessor and shall remain for the benefit
of the Lessor; provided, however, that if prior to the termination of this
Lease, or within thirty (30) days thereafter the Lessor so directs by notice to
the Lessee that the same be removed, the lessees shall at its cost and expense
promptly remove such of the alteration which were placed on the leased Premises
by the lessee and which are designated in said notice and repair any damage
occasioned by such removal to the reasonable satisfaction of the lessor and in
default thereof the Lessor may effect said removals and repairs at the lessee's
cost and expense and the lessee shall pay the cost and expense thereof to the
Lessor upon demand as Additional Rent. In the event of the making of such
Alteration as herein provided, the lessee shall indemnify and save the Lessor
harmless of and from any and all loss and damage. The foregoing notwithstanding,
Lessee shall not be required to remove the permanent Leasehold improvements to
be constructed by Lessee such as office partitions. Lessee shall also have the
right to remove its trade fixtures, shelving, machinery and equipment provided
it repairs any damage caused by such removal.

     2.   In the event that the Lessee shall make any Alteration to the leased
premises pursuant to Section 1 of this Article, the Lessee shall promptly pay
when due all contractors and materialmen who shall have supplied labor, work or
materials to the Lessee. In addition, the Lessee shall take all other steps,
including without limitation the timely filing of stipulations or waivers or
releases of liens signed by all contractor, subcontractors or materialmen. In
the event that any Mechanic's Lien shall be filed with respect to the Leased
Premises for work performed
<PAGE>

                                      -8-

by or on behalf of the Lessee, the Lessee shall bond against or cause the same
to be discharged within thirty (30) days after the Mechanic's Lien has been
filed or formal notice of said lien has been issued, whichever shall first
occur, regardless of the validity of such Mechanic's Lien. Nothing contained in
this Lease or otherwise is intended to authorize the Lessee to do or cause any
work or labor to be done or any materials to be supplied for the account of the
lessee, all of the same being solely for the Lessee's account and at the
Lessee's sole risk, cost and expense.

                      ARTICLE IX -- MAINTENANCE AND REPAIR

     1.  Repairs and Maintenance by Lessee

          (a) Lessee shall at all times at its own expense keep and maintain the
Leased Premises (including, but not limited to, all entrances and the inside and
outside of all glass in the doors and windows and all partitions, doors,
fixtures, signs, equipment and appurtenances thereof in good order and repair
and in a neat, safe, clean and orderly condition, including, but not limited to,
making all nonstructural ordinary and extraordinary, foreseen and unforeseen
repairs and replacements to the Leased Premises, including, without limitation,
repairs and replacements to the plumbing and sewage facilities within the Leased
Premises or under the floor slab including free flow up to the main sewer line,
electrical, heating ventilation and air conditioning systems and escalators and
elevators, if any, and mechanical systems and installations therein, provided
however that Lessee shall not be responsible for any repairs or defects caused
by faulty construction by Lessor and Lessor agrees to repair or correct the
same. Lessee shall not overload the electrical wiring serving the Leased
Premises or within the leased Premises, and will install at its own expense but
only after obtaining Lessor's written approval, which shall not be unreasonably
withheld, any additional electrical wiring which may be required in connection
with the Leased Premises.
<PAGE>

                                      -9-

          (b)  Lessee will repair promptly at its own expense any damage
(whether structural or nonstructural) to the Leased Premises caused by any
construction or alterations performed by Lessee or bringing into the Leased
Premises any property for Lessee's use, or by the installation or removal of
such property, regardless of fault or by whom such damage shall be caused,
unless caused solely by the negligence of Lessor or its servants or employees.

          (c)  In the event Lessee defaults in the performance to Lessor's
satisfaction of any of its obligations and under this Section 1, and such
default continues for a period of ten (10) days after written notice from Lessor
(except that in an emergency no notice shall be required), Lessor, in addition
to Lessor's other remedies under this Lease, at law or in equity, may (but shall
not be obligated to do so) cure such default on behalf of Lessee without any
liability of Lessor, its agents, servants, employees, contractors or
subcontractors for damage to Lessee's merchandise, fixtures or other property or
to Lessee's business by reason thereof and Lessee shall reimburse Lessor, as
Additional Rent, upon demand, for any sums paid or costs incurred in curing such
default, plus administrative costs of Lessor in a sum equal to twenty percent
(20%) of such sums and costs.

     2.   Structural Repairs.  Except as otherwise provided by Section 1,
structural portions of the Premises, the roof of the Leased Premises and those
portions of the exterior of the Leased Premises, including parking areas, which
Lessee is not obligated to maintain pursuant to Section 1 will be repaired by
Lessor provided Lessee gives Lessor notice specifying the need for and nature of
such repairs, provided however, if Lessor is required to make any repairs to
such portions of the Leased Premises by reason, in whole or in part of the
negligent act of failure to act by Lessee or Lessee's agent. Servants,
employees, contractors or subcontractors, or by reason of any unusual use of the
Leased Premises by Lessee (whether or not such use is a permitted use
<PAGE>

                                      -10-

hereunder), Lessor may collect the cost of such repairs, as Additional Rent,
upon demand. For the purpose of this Lease, any difference in floor level,
shifting of floor slab, or deviation in finished floor height resulting from the
insertion or construction of an expansion joint or strip in the floor slab shall
not be deemed a structural defect requiring repair by Lessor, but rather, a
normal construction practice which shall be Lessee's responsibility to
appropriately plan for in its construction and use of the Leased premises.

     If, without Lessor's prior consent, Lessee performs any alterations,
additions, improvements, changes, affixations of chattels or other work which
affects the structural portions of the Leased Premises and/or the roof of the
Building and/or that portion of the exterior of the Leased Premises which Lessor
is obligated to repair pursuant to Section 2 (a) or which affects the structural
integrity of the Building, such action by Lessee shall release and discharge
Lessor as of the commencement of such alteration, addition, improvement,
affixation or other work of and from such repair obligation and thereafter
Lessee agrees to be solely responsible for the maintenance, repair, and
replacement of any or all such structural portions, roof, exterior and building
which have been affected as aforesaid; provided, in the event Lessee shall
default in the performance, to Lessor's satisfaction, of such responsibilities,
Lessor, in addition to Lessor's other remedies under this Lease, at law or in
equity, may (but shall not be obligated to do so) cure such default on behalf of
Lessee without any liability of Lessor, its agents, servants, employees,
contractors or subcontractors for damage to Lessee's merchandise, fixtures or
other property or to Lessee's business by reason thereof, and Lessee shall
reimburse Lessor, as Additional Rent, upon demand, for any sums paid or costs
incurred in curing such default, plus administrative costs of Lessor in a sum
equal to twenty percent (20%) of such sums and/or costs. For the purposes of the
foregoing, if Lessee performs any such alterations, additions,
<PAGE>

                                      -11-

improvements, changes, affixation or other work in a manner not consistent with
Lessor's prior consent thereto, such work shall be deemed to have been performed
without Lessor's consent. The foregoing notwithstanding, Lessee shall have no
liability for and shall be reimbursed by Lessor for the cost of repairs made by
Lessee which are the responsibility of Lessor hereunder and which Lessor failed
to make after ten (10) days written notice from Lessee to Lessor, unless Lessor
disputes responsibility.

     3.  The Lessee shall place throughout the leased premises such fire
extinguishers as are necessary in order to comply with all applicable laws and
shall maintain the same in good working order and repair. In the event that the
Lessee refuses or neglects to provide such fire extinguishers, the Lessor may,
but shall not be required to provide the same and the Lessee shall pay the cost
and expense thereof to the Lessor upon demand as Additional Rent. In the event
that the fire extinguishers are provided by the Lessee as required herein, the
fire extinguishers shall be and remain the property of the Lessee.

                    ARTICLE X -- MAINTENANCE OF COMMON AREA

     1.  The Lessor shall provide such approaches, exits, entrances, and
roadways as the Lessor shall determine to be appropriate for the nonexclusive
use of the Lessee, its employees, agents and customers. Subject to the other
provisions of this Lease, the Lessor shall maintain such approaches to 1520
Bobali Drive, Harrisburg, Pennsylvania, 17104, as recorded, i.e. exits,
entrances, paved areas, and roadways, and all lawns and other exterior areas
under the control of the Lessor ( all of the foregoing being hereinafter
referred to as "Common Areas") in good condition and repair, and with respect to
such approaches, exits, entrances, paved areas, and roadways as aforesaid,
reasonably clear of snow and ice.
<PAGE>

                                      -12-

     2.   During the term and all renewals thereof, the Lessee shall pay to the
Lessor as Additional Rent, which sum shall be paid monthly by the Lessee to the
Lessor together with the Basic Monthly Rent which shall constitute the Lessee's
share of the cost of the maintenance of the Common Areas including snow, lawn
care and parking areas but not to include trash removal or the cost of a trash
container, or security lighting. The cost of trash removal shall be paid by the
Lessee. The Lessee shall pay its pro rata share of the cost of all security
lighting as determined by the Lessor.

     3.   Lessee's net rental area is 50,000 square feet, divided into the total
Building of 50,000 square feet. Included with printout will be copies of
invoices submitted by subcontractors. Notwithstanding the foregoing, the Lessor
shall not take any action nor permit any other tenant of the Lessor to take any
action which would hinder or impede reasonable access to the Leased premises
over the roadway known as 1520 Bobali Drive, Harrisburg, Pennsylvania, 17104.

                   ARTICLE XI -- TAXES AND OTHER IMPOSITIONS

     1.   Within thirty (30) days after each billing is transmitted to the
Lessee, the Lessee shall pay as Additional Rent the Lessee's proportionate share
of all levies, taxes, assessments, water and sewer rates and charges, liens, and
license and permit fees, charges for public utilities and all other charges,
imposts and burdens of whatsoever nature, general or special, foreseen or
unforeseen, whether or not particularized by name, ordinary or extraordinary,
which are applicable to the Term of this Lease, and which are created, levied,
assessed, confirmed, adjudged, imposed or charged by any federal, state or
municipal government or public authority of whatsoever nature, or under any law
or governmental rule or regulation, or pursuant to any recorded covenants or
agreements (all of which are hereinafter referred to as "Impositions")
<PAGE>

                                      -13-

upon or with respect to the Leased Premises, the Lot upon which the same is
located or any improvements made thereto, any part of the foregoing or any
appurtenances thereto, or directly upon this Lease or the rent payable hereunder
or amounts payable by any subtenants or other occupants of the Leased Premises.
Or upon this transaction or any related documents to which the Lessee is a
party, or against the Lessor because of the lessor's estate or interest herein.
The Lessee's proportionate share of such Impositions shall be determined by
dividing the total area of the leased premise by the total area of the building
and applying the percentage thus calculated to the total amount of the
Impositions due. The Lessee shall pay each such Imposition at the Lessor's
election to the Lessor directly or to the government or other public authority
charged with the collection of such Impositions; and in the latter event, the
Lessee shall furnish to the Lessor, not later than thirty (30) days following
such payment, a receipt or other evidence satisfactory to the Lessor of the
payment of such Impositions.

     2.  Nothing contained in this Lease shall be deemed to require the Lessee
to pay any income, sales, gross receipts, business privilege, transfer or excess
profits tax imposed or assessed upon the Lessor by reason of its collection of
rents under the Lease. Lessee shall be responsible for any mercantile taxes
relating to its business.

     3.  Notwithstanding the foregoing provisions of this Article, in the event
that any mortgages of the Lessor requires monthly installment payments of the
Impositions or in the event that any mortgagee of the lessor requires monthly
installment payments of the Impositions or in the event that the lessee fails to
pay the Impositions when due, the Lessor shall have the right, at its election,
but not the duty, to require the Lessee to pay to the Lessor or to any mortgagee
of the lessor, at the time when the installment of basic monthly Rent is payable
hereunder, an amount equal to one-twelfth (1/12th) of the annual Impositions as
estimated by the lessor.  In the event an
<PAGE>

                                      -14-

actual billing is transmitted to the lessee, the Lessee shall also pay as
Additional Rent the amount by which the Impositions becoming due exceed the
monthly payments of account thereof previously made by the Lessee. The Lessor
shall have no liability to the lessee on account of any estimate made by the
lessor with respect to any Imposition or by reason of the fact that any such
estimate exceeded or was less than the amount of such Imposition. Any payments
by Lessee which turn out to be in excess of the Impositions actually owed shall
be returned promptly by Lessor to Lessee. The amounts paid by the lessee
pursuant to this Section shall be used to pay the Impositions but such amounts
shall not be deemed to be trust funds and no interest shall be payable thereon
by the Lessor.

     4.  The Lessor shall have the right, but not the duty, to contest the
validity or amount of any imposition or to recover payments made on account
thereof. The lessee shall cooperate fully with the lessor with respect to such
proceedings to the extent reasonably necessary and shall pay to the lessor all
reasonable costs and expenses, including without limitation attorneys fees,
incurred in connection with such proceedings as Additional Rent promptly upon
being billed therefore. In the event that the Lessor shall elect not to contest
the validity or amount of any real estate tax (or assessment pertaining thereto)
which is referred to in this Article and which is, included within the
definition of "Impositions" referred to therein, then the lessee shall have the
right, but not the duty, to contest the same at its own cost and expense and in
such case, any amounts to be recovered, net reasonable attorneys fees, shall be
distributed on an equitable basis between the Lessor and the Lessee.

                           ARTICLES XII -- UTILITIES

     1.  The Lessee shall pay for the cost and expense of all utilities and
other services rendered furnished to the Leased Premises during the term,
including without limitation heat,
<PAGE>

                                      -15-

water service, sewer service, gas, electricity, telephone service and trash
disposal service together with all taxes levied or assessed thereon and other
charges on such utilities or services. In no event shall the lessor be liable
for the quality, quantity, failure or interruption of such utilities or services
to Leased Premises. The following utilities shall be separately metered for the
leased Premises: heat, water service, sewer service, gas, electricity, and
telephone service. Notwithstanding the foregoing, in the event that such
utilities or services are not separately metered for the Lessee, then the Lessee
shall pay from time to time as Additional Rent within thirty (30) days after
billing by the Lessor the Lessee's proportionate share of the cost and expense
of such utilities and other services, by dividing the total area of the leased
premise by the total area of the building and applying the percentage thus
calculated to the total amount of the Impositions due.

                     ARTICLES XIII -- INSURANCE AND DAMAGE

     1.  The Lessee shall maintain and keep in effect throughout the Term hereof
with policies from an insurer and in form and substance reasonably satisfactory
to the lessor and its lender.

         a.  Insurance against loss or damage to the Leased Premises and all
other improvements now or hereafter located thereon by fire and such other
casualties as may be included in the broadest form of all-risk insurance from
time to time available, in an amount equal to at least the full insurable
replacement value of the leased Premises and all improvements thereon, the
policy to have attached thereto replacement cost.

     2.  Lessee will keep in force with companies licensed to do business in the
state where the Leased Premises is located at Lessee's expense at all times
during the term of this Lease and during such other times as Lessee occupies the
leased Premises for any part there:
<PAGE>

                                      -16-

         (a) Public liability insurance with respect to Leased Premises, if
any, and the business operated by Lessee and any subtenants, licensees and
concessionaires of Lessee in or from the leased Premises with minimum limits of
Five Hundred Thousand Dollars ($500,000.00) on account of bodily injuries to or
death of one person, and One Million Dollars ($1,000,000.00) on account of
bodily injuries to or death of more than one person as the result of any one
accident or disaster, and property damage insurance with minimum limits of One
Hundred thousand Dollars ($100,000.00). If the nature of Lessee's operation is
such as to place any or all of its employees under the coverage of local
workmen's compensation or similar statues, Lessee shall also keep in force, at
its own expense, workmen's compensation or similar insurance affording statutory
coverage and containing statutory limits.

         (b) Upon request, Lessee will deposit with Lessor the policies of
insurance required by the provisions of this Section, of certificates thereof,
together with satisfactory evidence of the payment of the required premium, or
premiums thereof.

         (c) All policies of insurance required to be carried by Lessee
pursuant to this Lease shall provide that the policy shall not be subject to
cancellation, termination or change except after ten (10) days prior written
notice to Lessor and shall name Lessor as an additional insured as its interest
may appear. In addition, such policies of insurance shall contain a provision
substantially as follows: "It is understood and agreed that the insurance
afforded by this policy or policies for more than one named insured shall not
operate to increase the limits of the companies' liability, but otherwise shall
not operate to limit or void the coverage of any one named insured as respects
claims against the same named insured by any other named insured or the
employees of such other names insured."
<PAGE>

                                      -17-

     3.  (a)  Lessee will not do, omit to do, or suffer to be done or keep or
suffer to be kept anything in, upon or about the Leased Premises which will
violate the provisions of Lessor's policies insuring against loss or damage by
fire or other hazards (including, but not limited to, public liability), which
will adversely affect Lessor's fire or liability insurance premium rating or
which will prevent Lessor from procuring such policies with companies acceptable
to Lessor, provided Lessee is first given adequate notice of the requirements of
such policies. If anything done, omitted to be done or suffered to be done by
Lessee, or kept or suffered by Lessee to be kept in, upon or about the leased
Premises shall by itself or in combination with other circumstances existing at
the Building of which the Leased Premises are a part, cause the premium rate of
fire or other insurance on the Leased Premises or other property of the Building
of which the Leased Premises are a part, in companies acceptable to lessor to be
increased beyond the established rate from time to time fixed by the appropriate
underwriters with regard to the use of the leased Premises for the purposes
permitted under this Lease or to such other property in the Building of which
the Leased Premises are a part, for the use or uses made thereof; Lessee will
pay the amount of such increase or, in the event that the other circumstances
existing at the Building of which the Leased Premises are a part, shall have
contributed to such increase, such equitable portion of such increase as
reasonably determined by Lessor, as Additional rent upon Lessor's demand and
will thereafter pay the amount of such increase, as the same may vary from time
to time, with respect to every premium relating to coverage of the Leased
Premises during a period falling within the Term of this Lease until such
increase is eliminated. In addition, if applicable, Lessor may at its option
rectify the condition existing on the Leased Premises which caused or was a
contributing cause of the increased premium rate in the event that the Lessee
should fail to do so and may charge the cost of such
<PAGE>

                                      -18-

action to Lessee as Additional Rent, payable on demand. In determining whether
increased premiums are the result of Lessee's use of the Leased Premises, a
schedule, issued by the organization making the insurance rate on the Leased
Premises, showing the various components of such rate, shall be conclusive
evidence of the several items and charges which make up the fire insurance rate
on the Leased Premises.

         (b) If for any reason whatsoever including, but not limited to, the
abandonment of the leased Premises, Lessee's failure to pay the insurance
premium or Lessee's failure to occupy the leased Premises as herein permitted,
Lessee fails to provide and keep in force any or all of the insurance policies
set forth in this Lease, then in such event Lessee shall indemnify and hold
Lessor harmless against any loss which would have been covered by such
insurance.

         (c) If Lessee shall not comply with its covenants made in this Section,
Lessor in addition to Lessor's other remedies hereunder may (but shall not be
obligated to) cause insurance, as aforesaid, to be issued, and in such event
Lessee agrees to pay the premium for such insurance as Additional Rent promptly
upon Lessor's demand, or Lessor, at its option, may treat such failure to comply
as a Deliberate Event of Default.

     4.  (a) Throughout the Term of this Lease, Lessee shall pay to Lessor, an
amount equal to the premium payment paid, or due within thirty (30) days, for
insurance coverage on the Leased Premises obtained by the Lessor, pursuant to
Section 1. Such payment shall be made within fifteen (15) days from the date of
an invoice provided by Lessor to Lessee.

         (b) In the event that the insurance policy covering the Leased
Premises obtained by the lessor pursuant to Section I covers all or a portion of
the Building in addition to
<PAGE>

                                      -19-

the Leased Premises, then the share of the Lessee of the insurance premium
contribution to the Leased Premises shall be completed in accordance with the
following formula:

                            Lessee's Share = P x LP
                            -----------------------
                                       B

"P" equals the dollar amount of the premium for the period in questions; LP
equals the total number of square feet constituting the Leased Premises; B
equals the total number of square feet in the Building covered by the policy in
question.

     5.  If the leased premises are damaged or destroyed so they cannot be
repaired with reasonable diligence within one hundred eighty (180) days of the
date of such damage or destruction, then either lessor or Lessee may terminate
this Lease upon thirty (30) days' written notice to the other party; provided,
however, that if Lessor has not entered into binding contracts within sixty (60)
days of the date of damage for the repair and reconstruction of the Leased
Premises within 180 days of the date of destruction, Lessee shall have the
option, at its sole discretion, to terminate this Lease upon thirty (30) day's
written notice to Lessor. In the event of such, termination on or after the
sixtieth day after the date of damage, all rent and other charges payable by
Lessee shall be payable only to the date of the damage or destruction and any
rent or other charges paid in advance by Lessee shall be refunded by Lessor to
Lessee to the extent that the same are for a period after the damage or
destruction.

     6.  If the Leased Premises are damaged or destroyed, but this lease is not
terminated, as provided above, then Lessor shall rebuild and restore the leased
Premises within such 180-day period and during the period from the date of such
damage or destruction until completion of rebuilding and restoration, the
charges payable by Lessee shall abate as follows:

         (a) If the Leased Premises are used during such period, then all rent
and other charges payable hereunder by Lessee shall abate in the proportion that
the damaged or destroyed
<PAGE>

                                      -20-

portion bears to the whole and rent and other charges shall be paid on the basis
of the number of square feet of floor area in the Leased Premises which are
actually used:

         (b) If the leased Premises are not used during such period for any
purpose by Lessee, then there shall be a complete abatement of all rent and
other charges from the date of injury until completion of rebuilding and
restoration.

     7.  If any damage to or condition of the Leased Premises, which by this
lease is Lessor's responsibility, shall in Lessee's reasonable judgment be
considered of such a nature as to require emergency action, then lessee may
undertake, at Lessor's expense, temporary emergency measures and Lessor shall
reimburse Lessee on demand for the costs and expenses associated with such
measures Lessee shall use its reasonable efforts to notify Lessor by telephone
of any such emergency.

     8.  The Lessor's obligation or election to restore the Leased premises
under this Article shall not include the repair, restoration or replacement of
the fixtures, improvements, alterations, furniture or any other property,
owned, installed, made by or in the possession of the Lessee.

                       ARTICLE XIV -- LESSEE'S PROPERTY

     1.  All of the lessee's personal property of every kind or description
which may at any time be in the leased Premises shall be at the lessee's sole
risk, or at the risk of those claiming under the lessee, and the Lessor shall
not be liable for any damage to said property or loss suffered by the business
or occupation of the Lessee caused by water from any source whatsoever or from
the bursting, overflowing or leaking of sewer or steam pipes or from the
sprinkler system or from the heating or plumbing fixtures or from electric wires
or from gas or odors caused in any manner whatsoever. Provided however that
Lessor shall be liable if the
<PAGE>

                                      -21-

damage is the result of faulty construction on the part of Lessor or the failure
of Lessor to make repairs for which Lessor is responsible after written notice
from Lessee.

                    ARTICLE XV -- ACCESS TO LEASED PREMISES

     1.  The lessee shall permit the Lessor and the Lessor's agents to inspect
and examine the Leased Premises at any reasonable time during business hours, in
company of a representative of the lessor and after reasonable notice to the
Lessee, except in a bona fide emergency, to permit the lessor to make such
repairs, decorations, alterations, improvements or additions in the Leased
Premises or to the Building that Lessor may deem desirable or necessary, without
the same being construed as an eviction of the Lessee in whole or in part and
the Basic Monthly Rent and Additional Rent shall in no way abate while such
repairs, decorations, alterations, improvements or additions are being made by
reason of loss or interruption of the business of Lessee because of the
prosecution of such work.

     2.  The Lessor shall also have the right to enter the Leased Premises for a
period commencing one hundred eighty (180) days prior to the termination of the
Term of this Lease during business hours, in company of representative of the
lessor and after reasonable notice to the Lessee, to permit the for the purpose
of exhibiting the same to prospective tenants or purchasers. During said period
the lessor may place signs in or upon the Leased Premises to indicate that same
are for rent or sale, which signs shall not be removed, obliterated or hidden by
Lessee.

                        ARTICLE XVI -- QUIET ENJOYMENT

     1.  In The event that the Lessee shall pay the Basic Monthly rent,
Additional Rent and other sums owing hereunder and shall perform and observe all
of the covenants and duties and obligations herein required to be performed or
observed on the Lessee's part, the Lessee
<PAGE>

                                      -22-

shall, at all times during the Term, have the peaceable and quiet enjoyment and
possession of the leased Premises without any manner of hindrance from the
lessor or any persons lawfully claiming through the lessor, except as to such
portion of the leased Premises as shall be taken under the power of eminent
domain.

        ARTICLE XVII -- ESTOPPEL CERTIFICATE; SUBORDINATION; ATTORNMENT

     1.   At any time, and from time to time, upon the written request of Lessor
or any mortgagee, Lessee, within twenty (20) days of the date of such written
request, agrees to execute and deliver to Lessor and/or such mortgagee, without
charge and in a form satisfactory to Lessor and/or such mortgagee, a written
statement (a) ratifying this Lease; (b) confirming the commencement and
expiration dates of the term of this Lease; (c) certifying that Lessee is in
occupancy of the leased Premises, and that the Lease is in full force and effect
and has not been modified, assigned, supplemented or amended except by such
writings as shall be stated; (d) certifying that all conditions and agreements
under this Lease to be satisfied or performed by Lessor have been satisfied and
performed except as shall be stated; (e) certifying that lessor is not in
default under the Lease and there are no defenses or offsets against the
enforcement of the Lease by Lessor, or stating the defaults and/or defenses
claimed by Lessee; (f) reciting the amount of advance rent, if any, paid by
Tenant and the date to which such rent has been paid; (g) reciting the amount of
security deposited with Lessor, if any; and (h) any other information which
Lessor or the mortgagee shall reasonably require.

     2.   The failure of Lessee to execute, acknowledge and deliver to Lessor
and/or any mortgagee a statement in accordance with the provisions of Section 1
above within the period set forth in Section 1 shall constitute an
acknowledgment by Lessee which may be relied upon by any person holding or
intending to acquire any interest whatsoever in the leased Premises that
<PAGE>

                                      -23-

this Lease has not been assigned, amended, changed or modified, is in full force
and effect and that the Basic Monthly Rent and Additional Rent have been duly
and fully paid not beyond the respective due dates immediately preceding the
date of the request for such statement and shall constitute as to any persons
entitled to rely on such statements a waiver of any defaults by Lessor or
defenses or offsets against the enforcement of this Lease by Lessor which may
exist prior to the date of the written request, and Lessor, at its option, may
treat such failure as a Default by Lessee.

     3.   Lessee agrees: (a) that except as hereinafter provided, this Lease is,
and all of Lessee's rights hereunder are and shall always be, subject and
subordinate to any first mortgage, leases of lessor's property (in sale-
leaseback) pursuant to which Lessor has or shall retain the right of possession
of the Leased Premises or any part thereof and to all advances made or to be
made thereunder and to the interest thereon, and all renewal replacements,
modifications, consolidations, or extensions thereof, and (b) that if the holder
of any such Mortgage ("Mortgagee") or if the purchaser at any foreclosure sale
or at any sale under a power of sale contained in any Mortgage shall at its sole
option so request, Lessee will attorn to, and recognize such Mortgagee or
purchase, as the case may be, as Lessor under this Lease for the balance then
remaining of the Term of this Lease, subject to all terms of this Lease, and (c)
that the aforesaid provisions shall be self-operative and no further instrument
or document shall be necessary unless required by such Mortgagee or purchaser.
Notwithstanding anything to the contrary set forth above, any Mortgagee may at
any time subordinate its Mortgage to this Lease, without Lessee's consent, by
execution of a written document subordinating such Mortgage to this Lease to the
extent set forth therein, and thereupon this Lease shall be deemed prior to such
Mortgage to the extent set forth in such written document without regard to
their respective dates of
<PAGE>

                                      -24-

execution, delivery and/or recording and in the event, to the extent set forth
in such written document such Mortgagee shall have the same rights with respect
to this Lease as though this Lease had been executed and a memorandum thereof
recorded prior to the execution, delivery and recording of the Mortgagee and as
though this Lease had been assigned to such Mortgagee. Should Lessor or any
Mortgagee or purchaser desire confirmation of either such subordination or such
attornment, as the case may be, Lessee upon written request, and from time to
time, will execute and deliver without charge and in form satisfactory of
Lessor, the Mortgagee or the purchaser all instruments and/or documents that may
be requested to acknowledge such subordination and/or agreement to attorn, in
recordable form. The subordination provisions contained herein shall be subject
to the "Quiet Enjoyment" clause contained in Article XVI above.

     4.   In the event Lessee fails to execute and deliver the instruments and
documents as provided for above, within the time period set forth, Lessee does
hereby make, constitute and appoint Lessor or such Mortgagee or purchaser, as
the case may be, as Lessee's attorney-in-fact and in its name, place and stead
to do so, or Lessor may treat such failure as a Default by Lessee. The aforesaid
power of attorney is given as security coupled with an interest and is
irrevocable.

       ARTICLE XVIII -- EVENTS OF DEFAULT; LESSOR'S REMEDIES AND DAMAGES

     1.   The following shall constitute Events of Default:

          (a)  If Lessee defaults in the payment of any sum of money (whether
Basic Monthly Rent, Additional Rent or otherwise) when due and such default
shall continue for ten (10) days after the date of written notice from Lessor to
Lessee.
          (b)  Except for the payment of sums of money as described in Paragraph
1(b) above, if Lessee defaults in fulfilling any of the other covenants of this
Lease on Lessee's part to
<PAGE>

                                      -25-

be performed hereunder and such default shall continue for the period within
which performance is required to be made by specific provision of this Lease,
or, if no such period is so provided, for twenty (20) days after the date or
written notice from Lessor to Lessee specifying the nature of said default, or,
if the default so specified shall be of such a nature that the same cannot be
reasonably cured or remedied with said twenty (20) day period, if Lessee shall
not in good faith have commenced the curing or remedying of such default within
such twenty day period and shall not thereafter diligently proceed therewith to
completion.

          (c)  If any execution or attachment shall be issued against Lessee or
any of Lessee's property and shall not be discharged or vacated within ten (10)
days after the issuance thereof.

          (d)  If by order of a court of competent jurisdiction, a receiver or
liquidation or trustee of Lessee or any guarantor of this Lease, or of any of
its property, shall be appointed and shall not have been sequestered, and such
decree shall have continued undischarged and unstayed for 30 days after the
entry thereof or if any proceedings under the Federal Bankruptcy Act or any
similar statute applicable to Lessee or any such guarantor, as or hereafter in
effect, shall be instituted by or against it and shall not be dismissed within
30 days after such filing, or if Lessee or any such guarantor shall institute
any such proceeding or shall consent to the institution of any such proceeding
against it under any such law, or Lessee or any such guarantor shall consent the
appointment of a receiver or liquidator or trustee of it or of all or any part
of its property.

          (e)  If Lessee shall abandon the leased Premises or if the Leased
Premises shall be permitted to become vacant.
<PAGE>

                                      -26-

     2.   In the event of a retaking of the Premises by the Lessor or upon the
default by the Lessee and enforcement of its remedies in such event, Lessor
shall:
          (a)  have the obligation to make reasonable attempts to relet the
Premises and thereby mitigate Lessee's damages. Rent recovered by such reletting
shall be applied against Lessee's damages.

          (b)  Such reletting shall be in an arm's length transaction and Lessor
may not relet rent free.

          (c)  Upon such reletting the lessee shall be released from any
liability under the lease as though the same had terminated by its terms and
except for any damages not mitigated under Paragraph 2 (a) above.

     3.   Upon or after the occurrence of any one or more of such Events of
Default, and upon Lessee's failure to cure as provided if the Term shall not
have commenced Lessor may immediately cancel this Lease by written notice to
Lessee, or if the Term shall have commenced Lessor may serve upon Lessee a
written notice that this Lease and the Term will terminate on a date to be
specified therein, which shall not be less than ten (10) days after the date of
such notice and in either event, Lessee shall have no right to avoid the
cancellation or termination by payment of any sum due or by other performance of
any condition, term or covenant broken. Upon the date specified the aforesaid
notice of termination, this Lease and the term hereof shall terminate and come
to an end as fully and completely as if such date were the day herein definitely
fixed for the end and expiration of this Lease and such term, and Lessee shall
then quit and surrender the Leased Premises to Lessor, but notwithstanding any
statute, rule of law, or decision of any court to the contrary, Lessee shall
remain liable as set forth hereinafter.  Notwithstanding Lessors election to
terminate this Lease, Lessor may reinstate this Lease at any
<PAGE>

                                      -27-

time thereafter, and a letter from Lessor, its agent or the attorney for Lessor
setting forth Lessor's exercise of its option to reinstate the lease shall be
sufficient to reinstate this lease upon all of its terms and conditions, without
any other notice to or from either party to the other.

     4.   Upon or after any one or more Events of Default; or if the notice
provided for above in Section 3 hereof shall have been given and this Lease
shall be terminated; or if the leased Premises become vacant or deserted; then,
in all or any of such events, in addition to, and not in lieu of all other
remedies of Lessor, Lessor may without notice terminate all services (including,
but not limited to, the furnishing of utilities) and/or reenter the leased
Premises, or by summary proceedings or otherwise dispossess Lessee and the legal
representative of Lessee or other occupant of the Leased Premises, and remove
their effects and repossess and enjoy the Leased Premises, together with all
alteration, additions and improvements, all without being liable to prosecution
or damages therefor.

     5.   Additional Remedies of Lessor.

          (a)  In the event of any Event of Default, termination and/or
dispossession by summary proceedings or otherwise, in addition to, and not in
lieu of, all other remedies which Lessor has under this lease, at law or in
equity: (1) the Basic Monthly Rent shall become due thereupon and be paid up to
the time of such reentry, dispossession and/or expiration; and (2) Lessor may
relet the Leased Premises or any part or parts thereof either in the name of
Lessor or otherwise, for a term which may at lessor's option be less than or
exceed the period which would otherwise have constituted the balance of the term
of this Lease, and may grant reasonable concessions or free rent and (3) Lessor,
at Lessor's option, may make such alterations, repairs, replacements and/or
decorations in the leased Premises as Lessor in Lessor's sole judgment considers
advisable and necessary for the purpose of reletting the Leased Premises; and
the
<PAGE>

                                      -28-

making of such alterations and/or decorations shall not operate or be construed
to release Lessor from liability hereunder as aforesaid. Lessor shall in no
event be liable in any way whatsoever for failure to relet the Leased Premises,
or in the event that the Leased Premises are relet, of failure to collect the
rent thereof such reletting.

          (b)  In any of the circumstances mentioned in the foregoing section in
which Lessor shall have the right to hold Lessee liable as therein provided,
Lessor shall have the election, in place and instead of holding Lessee so
liable, forthwith to recover against Lessee, as liquidated damages for loss of
the bargain and not as a penalty, a sum equal to the Basic monthly Rent
multiplied by the number of months and fractional months which would have
constituted the balance of the Term, together with costs and attorney's fees.

          (c)  In the event of a breach or threatened breach by Lessee of any of
the covenants or provisions hereof, Lessor shall have the right of injunction
and the right to invoke any remedy allowed at law or in equity as if reentry,
summary proceedings and other remedies were not herein provided for. Mention in
the lease of any particular remedy shall not preclude Lessor from any other
remedies under this Lease, either now or hereafter existing at law or in equity
or by statute.

     6.   Confession of Judgment.

          (a)  When this Lease shall be terminated or canceled by reason of the
breach of any provision hereof either during the original term of this Lease or
any renewal thereof and also as soon as the Term hereby created or any renewal
thereof shall have expired, it shall be lawful for any attorney as attorney for
Lessee to file an agreement for entering in any court of competent jurisdiction
and amicable action and confession of judgment in ejectment against Lessee and
all persons claiming under Lessee for the recovery by Lessor of possession of
the
<PAGE>

                                      -29-

Leased Premises, for which this Lease or a true and correct copy thereof
shall be his sufficient warrant, whereupon, if Lessor so desires, a writ of
possession may issue forthwith, without any prior writ or proceedings
whatsoever, and provided that if for any reason after such action shall have
been commenced the same shall be terminated and possession remain in or be
restored to Lessee, Lessor shall have the right upon any subsequent default or
defaults, or upon the termination of cancellation of this lease as hereinbefore
set forth, to bring one or more amicable action or actions as hereinbefore set
forth to recover possession as aforesaid.

     7.   Security Interest.

          (a)  In addition to any other remedies the Lessor shall have in this
Lease, in the Event of Default, the Lessor shall have a lien as security for the
payment of the rent aforesaid upon all of the goods, wares, furniture and
fixtures, machinery and equipment which are or may be put upon the Premises, and
such liens may be enforced in the nonpayment of any rent by the taking and sale
of such property under the terms of the Uniform Commercial code and Lessee
agrees to execute such additional forms and documents as may be reasonably
required to perfect the security interest of the Lessee. Lessor agrees to
release or subordinate any of its landlord liens to any and all liens against
Lessee held by Lessee's banks.

          (b)  The right to delay execution on any real estate that may be
levied upon to collect any amount which may become due under the terms and
conditions of this Lease and any right to have the same appraised, and Lessee
authorizes any Prothonotary or clerk to enter a writ of execution or other
process upon Lessee's voluntary waiver and further agrees that said real estate
may be sold on a writ of execution or other process.
<PAGE>

                                      -30-

          (c)  the right to three (3) months' notice and/or fifteen (15) or
thirty (30) days' notice required under certain circumstances by The Landlord
and tenant Act of 1951, hereby agreeing that seven (7) days notice shall be
sufficient in either or any such case.

                    ARTICLE XIX -- INDICATION; SUBROGATION

     1.   Indemnification and Waiver of Claim.

          (a)  Lessee will defend and, except to the extent caused by the
negligence of Lessor, its agents, servants, and employees, will indemnify Lessor
and its agents and save them harmless from and against any and all claims,
actions, damages, liability and expense (including, but not limited to,
attorney's fees and disbursements) in connection with the loss of life, personal
injury or damage to property or business arising from, related to, or in
connection with the occupancy or use by Lessee of the Leased Premises or any
part of Lessor's property or occasioned wholly or in part by act or omission of
Lessee, its contractors, subcontractors, subtenants, licensees or
concessionaires, or its or their respective agent, servants or employees. Lessee
shall also pay all costs, expenses and reasonable attorney's fees that may be
expended or incurred by Lessor and/or its agent in successfully enforcing the
covenants and agreements of this Lease.

     2.   Unless and then solely to the extent such damage is caused by the
negligent acts or omissions of Lessor, or its agents, servants, and employees,
neither Lessor, nor its respective agents, servants, employees or contractors
shall be liable for, and Lessee, in consideration of Lessor's execution of this
Lease, hereby releases all claims for loss of life, personal injury or damage to
property or business sustained by Lessee or any person claiming through Lessee
resulting from any fire, accident, occurrence or condition in or upon any part
thereof (including, without limitation, the leased Premises and the Building)
including, but not limited to, such
<PAGE>

                                      -31-

claims for loss of life, personal injury or damage resulting from (1) any defect
in or failure of plumbing, heating or air conditioning equipment, electrical
wiring or installation thereof, water pipes, stairs, railings or walks; (2) any
equipment or appurtenances being out of repair; (3) the bursting, leaking or
running of any tank, washstand, water closet; waste pipe, drain or any other
pipe or tank in, upon or about; (4) the backing up of any sewer pipe; (5) the
escape of steam or hot water; (6) water, snow or ice being upon oncoming through
the roof or any other place upon or near the leased Premises or the building of
which the same is a part or otherwise; (7) the falling of any fixture, plaster
or stucco; (8) broken glass; (9) any act of omission of other tenants or other
occupants; and (10) any act or omission of lessor, its agent or their respective
principals, agents, servants and employees whether occurring on, prior to, or
subsequent to the date of this Lease. The foregoing waiver and release is
intended by Lessor and Lessee to be absolute, unconditional and without
exception and to supersede any specific repair obligation imposed upon Lessor
hereunder.

     3.   Subrogation.  In the event the leased Premises or its contents are
damaged or destroyed by fire or other insured casualty, (a) Lessor, to the
extent of the coverage of Lessor's policies of fire insurance with extended
coverage endorsements, hereby waives its rights, if any, against Lessee with
respect to such damage or destruction, even if said fire or other casualty shall
have been caused, in whole or in art, by the negligence of lessee, its agents,
servants or employees, and (b) Lessee, to the extent of the coverage of Lessee's
policies of fire insurance with extended coverage, hereby waives its rights, if
any, against lessor with respect to such damage, or destruction, even if said
fire or other casualty shall have been caused, in whole or in part, by the
negligence of lessor, its agents, servants or employees, provided, however, such
waivers of subrogation shall only be effective with respect to loss or damage
occurring during
<PAGE>

                                      -32-

such time as Lessor's or Lessee's policies of fire insurance with extended
coverage endorsements (as the case may be) shall contain a clause or
endorsement providing in substance that the aforesaid waiver of subrogation
shall not prejudice the type and amount of coverage under such policies or the
right of Lessor or Lessee (as the case may be) to recover thereunder. If, at any
time, Lessor's or Lessee's insurance carrier refuses to write insurance which
contains a consent to the foregoing waiver of subrogation, Lessor or Lessee, as
the case may be, shall notify the other party thereof in writing, and upon the
giving of such notice, the provisions of this Section shall be null and void as
to any casualty which occurs after such notice. If Lessor's or Lessee's
insurance carrier shall make a charge for the incorporation of the aforesaid
waiver of subrogation in its policies, then the party requesting the waiver
shall promptly pay such charge to the other party, upon demand. In the event the
party requesting the waiver fails to pay such charge upon demand, the other
party shall be released of its obligation to supply such waiver.

                            ARTICLE XX -- NO WAIVER

     1.   No failure on the part of the Lessor to exercise, and no delay in
exercising, any right or remedy of which it may be possessed shall operate as a
waiver thereof, nor shall any single or partial exercise by the lessor of any
right or remedy of which it may be possessed preclude any other or future
exercise thereof or the exercise of any other right or remedy.

                         ARTICLE XXI -- EMINENT DOMAIN

     1.   Total Condemnation. If the whole of the leased Premises shall be taken
by any public or quasi-public authority under the power of eminent domain,
condemnation or expropriation or in the event of a conveyance in lieu thereof
then this Lease shall terminate as of the date on which possession of the Leased
Premises is required to be surrendered to the condemning authority, and Lessee
shall have no claim against lessor or the condemning
<PAGE>

                                      -33-

authority, and lessee shall have no claim against Lessor or the condemning
authority for the value of the unexpired term of this lease.

     2.   Partial Condemnation.  If any part of the leased Premises shall be so
taken or conveyed and if such partial taking or conveyance shall render the
leased Premises unsuitable for the business of the lessee, then the term of this
Lease shall cease and terminate as of the date on which possession of the Leased
Premises is required to be surrendered to the condemning authority and Lessee
shall have no claim against Lessor or the condemning authority for the value of
any expired term of this lease. In the event such partial taking of conveyance
is not extensive enough to render the leased Premises unsuitable for the
business of Lessee, this Lease shall continue in full force and effect except
that the Basic Monthly rent shall be reduced in the same portion that the floor
area of the Leased Premises so taken or conveyed bears to such floor area
immediately prior to such taking or conveyance such reduction commencing as of
the date Lessee is required to surrender possession of such portion. Lessor
shall promptly restore the leased Premises, to the extent of condemnation
proceeds available for such purpose, as neatly as practicable to a condition
comparable to their condition at the time of such condemnation less the portion
lost in the taking or conveyance and Lessee shall promptly make all necessary
repairs, restoration and alterations of Lessee's fixtures, equipment and
furnishings and shall promptly reenter the leased Premises and commence doing
business in accordance with the provision of this Lease. For purposes of
determining the amount of funds available for restoration of the Leased Premise
from the condemnation award said amount will be deemed to be that part of the
awarded which remains after payment of Lessor's reasonable expenses incurred in
recovering same and of any amounts due to any mortgagee of lessor, and which
represents a portion of the
<PAGE>

                                      -34-

the total sum so available (excluding any award or other compensation for land)
which is equitably allocable to the leased premises.

                    ARTICLE XXII -- RENT ADJUSTMENT FORMULA

     The Basic Monthly Rent shall be Fifteen Thousand Six Hundred Twenty-Five
Dollars ($15,625.00) for years on (1) through and including ten (10) years
hereunder. The basic Monthly Rent shall be increased after year ten (10) as
follows: as described in Article XXIII.

                       ARTICLE XXIII -- OPTION TO RENEW

     The Lessee is hereby granted an option to extend this Lease for two (2)
five (5) year periods, and upon the exercise of any such option, all terms and
conditions herein contained (other than with respect to Minimum Monthly Rent
which shall be determined in accordance herewith but specifically including the
confession of judgment provisions contained in Article XVII hereof) contained in
the lease shall be applicable to each option period to the same extent as they
are to the Term hereof. The Lessee shall notify the lessor in writing six (6)
months prior to the expiration of the then current term of its intention not to
extend said Lease, otherwise the extension shall be automatic. The Minimum
monthly Rent shall be increased to seventeen thousand nine hundred sixteen
dollars and 66 cents for the first renewal term, and nineteen thousand five
hundred eighty-three dollars and 33 cents for the second renewal term.

                   ARTICLE XXIV -- ASSIGNMENT AND SUBLETTING

     1.  Assignment and Subletting.

     (a) Lessee shall not voluntarily, involuntarily, or by operation of law,
assign, transfer, mortgage or otherwise encumber (herein collectively referred
to as an "assignment") this Lease or any interest of Lessee herein, in whole or
in part, not sublet the whole or any part of the leased Premises, not permit the
leased Premises or any part thereof to be used or occupied by others,
<PAGE>

                                      -35-

without first obtaining in each and every instance the prior written consent of
Lessor, which will not be unreasonably withheld. Any consent by Lessor to an
assignment or subletting or use or occupancy by others shall be held to apply
only to the specific transaction thereby authorized and shall not constitute a
waiver of the necessity for such consent to any subsequent assignment of
subletting or sue or occupancy by others, including, but not limited to a
subsequent assignment or subletting by any trustee, receiver, liquidator, or
personal representative of Lessee, nor shall the references anywhere in this
Lease to subtenants, licensees and concessionaires be construed as a consent by
Lessor to an assignment. If this Lease or any interest herein be assigned or if
the leased Premises or any part thereof be sublet or used or occupied by anyone
other than Lessee without Lessor's prior written consent having been obtained
thereto, Lessor may nevertheless collect rent (including, but not limited to,
Basic Monthly Rent, and Additional Rent) from the assignee, sublessee, user or
occupant and apply the net amount collected to the rents herein reserved, and
furthermore in any such event Lessee shall pay to lessor monthly, as additional
rent, the excess of the consideration received or to be received during such
month for such assignment, sublease or occupancy (whether or not denoted as
rent) over the rental reserved for such month in this Lease applicable to such
portion of the leased Premises so assigned, sublet or occupied. No such
assignment, subletting, use, occupancy or collection shall be deemed a waiver of
the covenant herein against assignment, subletting or use or occupancy by other,
or the acceptance of the assignee, subtenant, user or occupant as lessee
hereunder or constitute a release of Lessee from the further performance by
Lessee of the terms and provisions of this Lease. If this Lease or any interest
of Lessee herein be assigned or if the whole or any part of the Leased premises
be sublet or used or occupied by others, after having obtain Lessor's prior
written consent thereto, Lessee shall nevertheless remain fully liable for the
full performance of all
<PAGE>

                                      -36-

obligations under this Lease to be performed by Lessee and Lessee shall not be
released therefrom in any manner.

                           ARTICLE XXV -- SURRENDER

     1.  The Lessee covenants to the Lessor to deliver up and surrender to the
Lessor possession of the Leased Premises upon expiration of this Lease or its
earlier termination as herein provided, broom clean and in as good condition and
repair as the same shall be at the commencement of the Term of this Lease, or
may have been put by the lessor during the continuance thereof, ordinary wear
and tear excepted. Acceptance of delivery of the Leased Premises or opening same
for business shall be deemed conclusive evidence that the Leased Premises were
in good condition and repair at the commencement of the Term of this Lease.

     2.  The Lessee shall at Lessee's expense remove all property of Lessee and
all alterations, additions and improvements as to which the lessor shall have
made the election hereinbefore provided, repair all damage to the Leased
Premises caused by such removal and restore the Leased Premises to the condition
in which they were prior to the installation of the articles so removed,
"ordinary wear and tear excepted". Any property not so removed and as to which
the Lessor shall have not made said election, shall be deemed to have been
abandoned by the Lessee and may be retained or disposed of by the lessor, as the
lessor shall desire. The Lessee's obligation to observe or perform this covenant
shall survive the expiration of the Term of this Lease.

                         ARTICLE XXVI -- MISCELLANEOUS

     1.  Access by Lessor.  Lessor may at all reasonable times during the Term
         ----------------
of this Lease enter to inspect the Leased Premises and/or may show the leased
Premises and building to others. At any time within one (1) year immediately
preceding the expiration of the Term of this
<PAGE>

                                      -37-

Lease, Lessor shall have the right to display on the exterior of the Leased
Premises (but not so as to unreasonably obstruct the view thereof or access
thereto) the customary "For Rent" sign and during such period Lessor may show
the leased Premises and all parts thereof to prospective tenants between the
hours of 9:00 AM. and 9:00 P.M., upon reasonable notice to Lessee and in the
company of Lessee's representative or opportunity for such representative to be
present upon the Leased Premise, on any day except Sunday and any legal or
religious holiday on which Lessee shall not be open for business. Lessor also
reserves the right after notice of intention to so enter (except that in the
event of an emergency, no notice shall be required) to enter the Leased Premises
at any time and from time to time to make such repairs, additions or alterations
as it may deem necessary for the safety, improvement or preservation thereof, or
of the Building, but Lessor assumes no obligation to do so, and the performance
thereof by Lessor shall not constitute a waiver of Lessee's default in failing
to perform the same. Lessor shall in no event be liable for any inconvenience,
disturbances, loss of business or other damage to Lessee by reason of the
performance by Lessor of any work in, upon, above or under the leased Premises.
If Lessee shall have vacated or deserted the Leased Premises or, in the event of
an emergency, or if in any other instance after Lessor has given written notice
of Lessor's intention to enter, Lessee or Lessee's employees shall not be
personally present to permit an entry into the Leased Premises, then in any such
event, Lessor or its agents or employees may enter the same by the use of force
or otherwise without rendering Lessor liable therefor, and without in any manner
affecting Lessor's obligations under this lease. The exercise of such reserved
right by Lessor shall not be deemed an eviction or disturbance of Lessee's use
and possession of the leased Premises and shall not render Lessor liable in any
manner to Lessee or to any other person, nor shall the same constitute any
grounds for an abatement of any rent hereunder.
<PAGE>

                                      -38-

     2.  Holding Over.  Should Lessee hold over in possession of the Leased
         ------------
Premises after the expiration of the term hereof without the execution of a new
lease agreement or extension or renewal agreement Lessee, at the option of
Lessor, shall be deemed to be occupying the Leased Premises from month to month,
subject to such occupancy being terminated by either party upon at least thirty
(30) days' written notice, at the rental, including, but not limited to, Basic
Monthly Rent and Additional Rent all calculated, from time to time, as though
the Term of this Lease had continued and otherwise subject to all of the other
terms, covenants and conditions of the lease insofar as the same may be
applicable to a month to month tenancy.

     3.  Successors.  All rights, obligations and liabilities herein given to,
         ----------
or imposed upon, the respective parties hereto shall extend to and bind the
several respective heirs, executors, administrators, trustees, receivers, legal
representatives, successors and assigns of the said parties; and if there shall
be more than one Lessee, they shall all be bound jointly and severally the
terms, covenants and agreements herein. No rights, however, shall inure to the
benefit of any assignee, legal representative, trustee, receiver, legatee or
other personal representative of lessee unless the assignment to such party has
been approved by Lessor in writing as provided in Section 14.1 (a) hereof.

     4.  Waiver.  The waiver by lessor of any breach of any term, covenant or
         ------
condition herein contained shall not be deemed to be a waiver of any subsequent
breach of the same or a waiver of any other term, covenant or condition herein
contained. The subsequent acceptance by Lessor of rent due hereunder or any or
all other monetary obligations of Lessee hereunder, whether or not denoted as
rent hereunder, shall not be deemed to be a waiver of any preceding breach by
Lessee of any term, covenant or condition of this lease, other than the failure
of lessee to make the particular payment so accepted, regardless of Lessor's
knowledge of such preceding
<PAGE>

                                      -39-

breach at the time of acceptance of such rent. No covenant, term or condition of
the Lease shall be deemed to have been waived by lessor, unless such waiver be
in writing and executed by Lessor.

     5.  Custom and Usage.  Any law, usage or custom to the contrary
         ----------------
notwithstanding, Lessor shall have the right at all times to enforce the
covenants and conditions of this lease in strict accordance with the terms
hereof, notwithstanding any conduct or custom on the part of the lessor in
refraining from so doing at any time or times with respect to the 1 lessee
hereunder or with respect to other tenants. The failure of Lessor at any time or
times to enforce its rights under said covenants and provisions strictly in
accordance with the same shall not be construed as having created a custom in
any way or manner contrary to the specific terms, provisions and covenants of
this Lease or as i having in any way or manner modified the same.

     6.  Accord and Satisfaction.  No payment by Lessee or receipt by Lessor of
         -----------------------
a lesser amount than any payment of Basic Monthly Rent or Additional Rent herein
stipulated shall be deemed to be other than on account of the earliest
stipulated Basic Monthly Rent or Additional Rent then due and payable, nor shall
any endorsement or statement on any check or any letter accompanying any check
or payment as rent be deemed and accord and satisfaction, and lessor may accept
such check or payment without prejudice to Lessor's right to recover the balance
of such rent or pursue any other remedy provided in this Lease, at law or in
equity.

     7.  Performance of Lessee's Covenants.  Lessee covenants and agrees that it
         ---------------------------------
will perform all agreements and observe all covenants herein expressed on its
part to be performed and observed and that it will promptly, upon receipt of
written notice specifying action desired by Lessor in connection with any such
agreement or covenant, comply with such notice; and further, that if Lessee
shall not comply with any such notice to the satisfaction of Lessor prior to the
date on which such noncompliance would constitute an Event of Default, in
addition to, and
<PAGE>

                                      -40-

not in lieu of or in limitation of any other remedy which Lessor may have
pursuant to this Lease, at law or in equity, Lessor may, but shall not be
obligated to, enter upon the Leased Premises and do the things specified in said
notice. Lessor shall have no liability to Lessee for any loss or damage existing
in any way from such action and Lessee agrees to pay upon demand, as Additional
Rent, any expense incurred by Lessor in taking such action. Notwithstanding the
foregoing, Lessor's performance of any or all of Lessee's covenants shall not
release Lessee from liability for nonperformance.

     8.  Entire Agreement.  The Lease, including the Exhibits and Rider, if any,
         ----------------
set forth all the covenants, promises, agreements, conditions and understandings
between Lessor and Lessee concerning the Leased Premises and there are no
covenants, promises, agreements, conditions or understandings, either oral or
written, between them other than as herein set forth. All prior communication,
negotiations, arrangements, representations, agreements and understandings,
whether oral, written or both, between the parties hereto, and their
representatives, are merged herein and extinguished, this Lease superseding and
canceling the same. Except as herein otherwise provided, no subsequent
alteration, amendment, change or addition to this Lease shall be binding upon
Lessor or Lessee unless reduced to writing and executed by the party against
which such subsequent alteration, amendment, change or modification if to be
enforced. If any provision contained in any rider hereto is inconsistent with
any printed revisions of this Lease, the provision contained in such rider shall
supersede said printed provision. Lessee hereby acknowledges that this Lease
contains no restrictive covenants or exclusive in favor of Lessee.
<PAGE>

                                      -41-

     9.   No Partnership. Lessor does not, in any way or for any purpose, become
          --------------
a partner of lessee in the conduct of its business, or otherwise, or joint
venture or a member of a joint enterprise with Lessee.

    10.   Captions and Index.  The captions and index appearing in the lease are
          ------------------
inserted only as a matter of convenience and in no way define, limit, construe
or describe the scope or intent of such sections or articles of this Lease nor
in any way affect this Lease.

    11.   Lessee Defined; Use of Pronoun.  The word "Lessee" shall be deemed and
          ------------------------------
taken to mean each and every person or party mentioned as a Lessee herein, be
the same one or more; and if there shall be more than one Lessee, any noticed
required or permitted by the terms of this Lease may be given by or to any one
thereof, and shall have the same force and effect as if given by or to all
thereof. The use of the neuter singular pronoun to refer to Lessor or Lessee
shall be deemed a proper reference even though Lessor or Lessee may be an
individual, a partnership, a corporation, or a group of two or more individuals
or corporations. The necessary grammatical changes required to make the
provisions of this Lease apply in the plural number where there is more than one
Lessor or Lessee an to either corporations, associations, partnerships or
individuals, males and females, shall in all instances be assumed as though in
each case fully expressed

     12.  Negation of Personal Liability.  Notwithstanding anything contained
          ------------------------------
herein to the contrary, Lessee and Lessor agree that neither party shall have
personal liability with respect to any of the provisions of this Lease and
Lessee and Lessor, respectfully, shall look solely to the estate and property of
Lessor in the land and buildings comprising the Building of which the demised
premises are a part for the satisfaction of Lessee's remedies, or the estate or
the property of Lessee as to Lessor's remedies, including without limitation the
collection of any judgment or
<PAGE>

                                      -42-

the enforcement of any other judicial process requiring the payment or
expenditure of money by Lessor or Lessee in the event of any default or breach
by Lessor or lessee with respect to any of the terms and provisions of this
Lease to be observed and/or performed by Lessor or lessee, subject, however, to
the prior rights of any holder of any Mortgage covering all or any part of the
Building of which the demised premises are a part, and no other assets of lessor
or Lessee or any principal of lessor or Lessee shall be subject to levy,
execution or other judicial process for the satisfaction of claims and in the
event either obtains a judgment against the other, the judgment docket shall be
so noted. This Section shall insure to the benefit of Lessor's and Lessee's
successors and assigns and their respective principals.

     13.  Effect of Governmental Limitation on Rents and Other Charges.  In the
          ------------------------------------------------------------
event that any law, decision, rule or regulation of any governmental body having
jurisdiction shall have the effect of limiting for any period of time the amount
of Basic monthly Rent or Additional Rent or other charges payable be lessee to
any amount less than that otherwise provided pursuant to this Lease, the
following amounts shall nevertheless be payable by Tenant: (a) throughout such
period of limitation, Tenant shall remain liable for the maximum amount of Basic
monthly Rent, Additional Rent, and other charges which are legally payable
(without regard to any limitation to the amount thereof expressed in this lease
except that all amounts payable by reason of the Section 15 shall not in the
aggregate exceed the total of all amounts which would otherwise be payable by
Lessee pursuant to the terms of this lease for the period of limitation), (b) at
the termination of such period limitation, Lessee shall pay to Lessor, on demand
but only to the extent legally collectible by lessor, any amounts which would
have been due from the Lessee during the period of limitation but which were not
paid because of such limiting law, decision, rule or regulation, and ( c) for
the remaining term of this Lease following the period of
<PAGE>

                                      -43-

limitation, Lessee shall pay to Lessor all amounts due for such portion of the
Term of this lease in accordance with the terms hereof calculated as though
there had been no intervening period of limitation.

     14.  Partial Invalidity; Separate Covenants.  If any term, covenant or
          --------------------------------------
condition of this Lease or the application thereof to any person or circumstance
shall to any extent, be invalid or unenforceable, the remainder of this Lease or
the application of such term, covenant, or condition to persons or circumstances
other than those as to which it is held invalid or unenforceable shall not be
affected thereby and each term, covenant and condition of this lease shall be
valid be enforced to the fullest extent permitted by law. Furthermore, each
covenant, agreement, obligation and other provision contained in this lease is,
and shall be deemed and construed as a separate and independent covenant of the
party bound by, undertaking or making the same, and not dependent on any other
provision of this Lease unless expressly so provided.

     15.  Recording.  Lessee shall not record this lease without the written
          ---------
consent of lessor. If Lessor requests, the parties shall execute and acknowledge
short form of lease for recording purposes which shall be recorded at lessor's
expense.

     16.  Brokerage Commission.  Landlord and tenant agree that Commercial-
          --------------------
Industrial Realty Company ("CIR") is entitled to receive a real estate
commission as per separate agreement between landlord and broker.

     17.  Construction.  It is the intent of the parties hereto that if any
          ------------
term, covenant, condition, or agreement of this Lease is capable of two or more
constructions, one or more of which would render the provisions void, and the
other or others of which would render the provision valid, then the provision
shall have the meaning or meanings which would render it valid.
<PAGE>

                                      -44-

     18.  Submission of Lease to Lessee.  THE SUBMISSION BY LESSOR TO LESSEE OF
          -----------------------------
THIS LEASE SHALL HAVE NO BINDING FORCE OR EFFECT, SHALL NOT CONSTITUTE AN OPTION
FOR THE LEASING OF THE LEASED PREMISES, NOT CONFER ANY RIGHTS OR IMPOSE ANY
OBLIGATIONS UPON EITHER PARTY UNTIL, THE EXECUTION THEREOF BY LESSOR AND THE
DELIVERY OF AN EXECUTED ORIGINAL COPY THEREOF TO LESSEE OR ITS REPRESENTATIVE.

                        ARTICLE XXVII -- BINDING CLAUSE

     This Agreement shall be binding upon and shall insure to the benefit of the
parties hereto, their respective heirs, personal representatives, successors and
assigns.

                       ARTICLE XXVIII -- NOTICE TO SELL

     Lessor does not intend to sell or offer to sell leased premises at this
time. However, if at any time in the future, and before the expiration date of
this lease, Lessor should decide to offer the premises for sale, then Lessee
shall be notified in writing of such intent to sell. Further, Lessee shall be
excluded from any real estate brokerage contract that Lessor may enter into for
the purpose of selling the leased premises.
<PAGE>

                                      -45-

     IN WITNESS WHEREOF, AND INTENDING TO BE LEGALLY BOUND HEREBY, the parties
hereto have caused this Lease to be duly executed and their seals to be hereunto
affixed on the day and year first above written.

                                    Robert M. Mumma, II, G.R.A.T.

                                    By: /s/ Robert M. Mumma, II, G.R.A.T.
                                        ---------------------------------

                                    Attest: /s/
                                            -----------------------------
                                                     "Lessor"

                                        /s/ Ronald C. Elliot
                                        ---------------------------------

                                    By: Ronald C. Elliot
                                        ---------------------------------

                                    Attest: /s/
                                            -----------------------------
                                                     "Lessee"

<PAGE>

                                   AGREEMENT

Robert M. Mumma, II, Landlord, agrees to pay QTL Corporation, Tenant, the sum of
thirty thousand dollars ($30,000.00) to be used to terminate current lease and
for moving expenses. This $30,000.00 shall be due and payable on the date of
commencement of the lease for the 1520 Bobali Drive premises.

Date: November 23, 1998                        /s/ Robert M. Mumma, II
                                               -------------------------------
                                               Robert M. Mumma, II G.R.A.T.
                                               Trustee

                                               /s/ R.C. Elliot
                                               ------------------------------
                                               QTL Corporation
                                               Title: President

<PAGE>

                                  EXHIBIT "A"

                            Description of Premises

A fifty thousand (50,000) square foot warehouse to be constructed on a 9.175
acre tract known as 1520 Bobali Drive, Swatara Township, Dauphin County,
Pennsylvania, more specifically described as Lot 23B, on the plan entitled
"Friendship Center" as recorded in Dauphin County Plan Book N, Volume 3,
Page 52, and in Dauphin County Record Book 252, page 142.
Tax Map Parcel # 63-24-39

<PAGE>

                                  Exhibit "B"

                           [SITE PLAN FOR TRACT 23B]

<PAGE>

                               EXHIBIT "C" & "D"

                       [TRACT 23B, SWATARA TOWNSHIP, PA
                      STRUCTURAL NOTES & TYPICAL DETAILS]

<PAGE>

                                  [TRACT 23B
                             SWATARA TOWNSHIP, PA
                               FOUNDATION PLAN]
<PAGE>

                                  [TRACT 23B
                             SWATARA TOWNSHIP, PA
                              ROOF FRAMING PLAN]
<PAGE>

                                  [TRACT 23B
                             SWATARA TOWNSHIP, PA
                          TYPICAL SECTIONS & DETAILS]
<PAGE>

                                  [TRACT 23B
                             SWATARA TOWNSHIP, PA
                          TYPICAL SECTIONS & DETAILS]
<PAGE>

                                  [TRACT 23B
                             SWATARA TOWNSHIP, PA
                               PANEL ELEVATIONS]
<PAGE>

                                  [TRACT 23B
                             SWATARA TOWNSHIP, PA
                               PANEL ELEVATIONS]
<PAGE>

                                  EXHIBIT "E"

                                 [FLOOR PLAN]

<PAGE>

                                  EXHIBIT "F"

[LEFT SIDE ELEVATION]
[REAR ELEVATION]
[RIGHT SIDE ELEVATION]
[FRONT ELEVATION]

<PAGE>

                              ASSIGNMENT OF LEASE
                              -------------------

    KNOW ALL MEN BY THESE PRESENTS, that Robert M. Mumma, II, G.R.A.T., original
Lessor, Party of the first part, for and in consideration of the sum of One
($1.00) Dollar and other good and valuable consideration, to it paid by Robert
M. Mumma, II, Party of the second part, the receipt whereof is hereby
acknowledged, has assigned, transferred and does hereby assign and transfer to
the said party of the second part, all right, title and interest of the said
party of the first party in and to a certain lease agreement dated November 17,
1998 with a lease addendum dated March 24, 1999 by QTL Corporation, leasing the
premises hereafter to be erected at 1520 Bobali Drive, Harrisburg, Pennsylvania
17104.

    In Witness Whereof, said party of the first party has caused these presents
to be signed by its Trustee this 6th day of April, 1999.

Witness:

/s/ Susan Mumma                      /s/ Robert M. Mumma II       (SEAL)
-----------------------              -----------------------------
                                     Robert M. Mumma, II, Trustee
                                     Robert M. Mumma, II G.R.A.T.

                             CONSENT TO ASSIGNMENT

     And now, this 9th day of April, 1999, QTL Corporation, Lessee under the
above-mentioned lease agreement, in consideration of One Dollar and other
valuable considerations, does hereby consent to the Assignment of all of the
right, title and interest of the Robert M. Mumma, II GRAT to Robert M. Mumma, II
in the Lease Agreement dated November 17, 1998 with addendum dated March 24,
1999.

     Witness my hand and seal of behalf of QTL Corporation the day and year
foresaid.

Attest:                              QTL Corporation

/s/ Caron Pearce                 by: /s/ Jeffrey Grace
-----------------------              -----------------------------
H/R  4/10/99                         Controller       4/10/99

<PAGE>

                                LEASE ADDENDUM

This lease addendum, made this 24th day of March, 1999, by and between ROBERT M.
MUMMA, G.R.A.T. ("Lessor") and QTL CORPORATION ("Lessee").

Whereas Lessor and Lessee did enter into a lease agreement dated November 17,
1998 for 50,000 square feet of warehouse space located at 1520 Bobali Drive,
Harrisburg, PA 17104.

Whereas Lessor and Lessee agree to the following:

                Page 5, Article II, Paragraph 1, shall be amended to read that
                Lessor represents to Lessee that occupancy will take place no
                later than July 1, 1999.

All other terms and conditions of the aforementioned Lease shall remain in full
force and effect except where modified by this document.

WITNESS:                                        ROBERT M. MUMMA, II, GRAT

-------------------------                       -------------------------------
                                                Date:

WITNESS:                                        QTL CORPORATION

/s/ Caron Pearce                                /s/ Jeffrey Grace
-------------------------                       -------------------------------
3/25/99                                         Date: 3/25/99

<PAGE>

                    [NEW AMERICA INTERNATIONAL LETTERHEAD]

November 24, 1998

Ron Elliott
QTL Corporation
1353 Dayton Street
Salinas, CA 93962

RE: Harrisburg Warehouse Lease

Dear Ron:

Enclosed is your signed Harrisburg warehouse lease and moving expense side
agreement letter. Please initial each of the individual lease pages and return
one lease to me as soon as possible.

Also enclosed is a receipt for your security deposit of $15,625.

Please note that the lease cover page and page #4 were corrected to indicate
your Salinas address, and page #8 was revised to show an occupancy lease date of
May 1/st/, 1999, instead of March 1/st/, 1998.

Sincerely,

COMMERCIAL-INDUSTRIAL REALTY COMPANY

/s/ Peter A. Gemora
Peter A. Gemora
REALTOR

PAG/sem

enclosures

                                 [LETTERHEAD]
<PAGE>

QTL CORPORATION                                                         36989

        Robert M. Mumma, II                       Check Number:    36989
                                                  Check Date:      Nov 19, 1998

                                                  Check Amount:   $15,625.00
Item to be Paid - Description                     Discount Taken   Amount Paid
--------------------------------------------------------------------------------
          security deposit                                          15,625.00

/s/ Received 11/28/98 Robert M. Mumma II

                             [FACSIMILE OF CHECK]

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