Document:

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                                                                   Exhibit 10.35

                              LEASE

Date:       As of June 30, 1997

Landlord:   MMG Investments, LLC
            c/o Southern Showcase Housing, Inc.
            624-A Guilford College Road
            Greensboro, NC  27409

Tenant:     Southern Showcase Housing, Inc.
            624-A Guilford College Road
            Greensboro, NC  27409

Premises:   That part of the building located 4604 Dundas Drive as indicated on
            the attached floor plan, comprising 5,220 sf of usable area and
            6,152 sf of rentable area

     In consideration of the agreements in this Lease, Landlord and Tenant agree
as follows:

1.   PREMISES
     1.1.  Demise
           Landlord leases the Premises to Tenant, and Tenant takes them from
     Landlord.

     1.2.  Condition of Property
           a.  As is
               Tenant accepts the Premises in its condition on
           the date of this Lease.
           b.  Alterations
               Tenant may make interior, non-structural alterations, additions
           or other changes to the Premises only with Landlord's prior approval,
           not to be unreasonably withheld. Tenant may not make other
           alterations, additions or other changes to the Premises.

     1.3.  Fixtures and Equipment
           Tenant's fixtures, furnishings, and equipment in the Premises remain
     Tenant's personal property and may be removed by Tenant, so long as any
     damage is repaired.

2.   COMMON AREA
     2.1.  Defined

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           The "Common Area" is all of Landlord's property except that which is
     leased to others, including parking areas, loading docks, delivery areas,
     sidewalks, equipment rooms, that part of the building and its mechanical
     and utility systems not maintained by tenants, landscaped areas, lobbies,
     hallways, conference rooms, restrooms, and any other areas and improvements
     provided by Landlord from time to time for common use by the tenants and
     their customers.

     2.2.  Use and Control of Common Area
           Tenant, its employees and customers may use the Common Area with
     Landlord and all others entitled to use the Common Area, subject to
     regulations imposed by Landlord. Tenant shall not interfere with anyone's
     use of the Common Area.

           However, Landlord grants to Tenant the exclusive right to use the 20
     parking spaces (not including the handicap parking spaces) nearest the
     front door on the west side of the building in which the Premises are
     located.

           Landlord retains exclusive control and management of the Common Area,
     and may perform such acts in the Common Area as Landlord in its sole
     discretion deems advisable. However, Tenant may exercise control over the
     conference room as long as Tenant makes the conference room available to
     all tenants in the building on an equitable basis.

           Landlord may establish, amend and enforce rules and regulations for
     the Common Area and the Premises. Tenant shall comply with the rules and
     regulations, as amended, and shall cause its employees, agents, customers
     and invitees to observe them.

     2.3.  Changes
           Landlord may make such changes to the Common Area as it desires,
     including changing, adding to, or subtracting from the size and dimensions
     of any part of the property; the number, location and dimensions of
     buildings and streets; dimensions of hallways and corridors; the number of
     floors in any building; the location, size and number of tenant spaces; the
     identity, type and location of other tenants; and the size, shape,
     location, arrangement, areas and facilities of the Common Area;

3.   LEASE TERM

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     The term of this Lease begins on the date of this Lease and ends on
September 30, 2007. If Tenant holds over after the termination of the lease
term, Tenant becomes a tenant at sufferance and shall pay double per diem rent
for each day it holds over.

4.   RENT
     4.1.  General
           Commencing on the Rent Commencement Date, Tenant shall pay Landlord
     rent in arrears, on the first day of each month, partial months prorated,
     in the following monthly rent amount (based on 6,152 rentable square feet
     and an annual rent increase of 3%):

<TABLE>
<CAPTION>

     Lease
     Year    PSF Rent     Annual Rent     Monthly Rent
     <S>     <C>          <C>             <C>
     1       $15.00       $92,280.00      $ 7,690.00
     2       $15.45       $95,048.40      $ 7,920.70
     3       $15.91       $97,899.85      $ 8,158.32
     4       $16.39       $100,836.85     $ 8,403.07
     5       $16.88       $103,861.95     $ 8,655.16
     6       $17.39       $106,977.81     $ 8,914.82
     7       $17.91       $110,187.15     $ 9,182.26
     8       $18.45       $113,492.76     $ 9,457.73
     9       $19.00       $116,897.54     $ 9,741.46
     10      $19.57       $120,404.47     $10,033.71
</TABLE>

     4.2.  Rent Commencement Date
           The Rent Commencement Date is October 1, 1997. A "Lease Year" is a
     12-month period beginning on the Rent Commencement Date (or its
     anniversary) and ending on the day before the following anniversary date.

     4.3.  Miscellaneous
           a.  Additional Rent
               All sums Tenant is required to pay under this Lease in addition
           to Rent are payable by Tenant and collectible by Landlord as rent.
           b.  Late Payment
               Any rent or additional rent not paid when due bears interest at
           the lesser of (a) the rate charged by large U.S. money center
           commercial banks, from time to time, as published in the Wall Street
           Journal, (or as fixed in Landlord's reasonable opinion if the Wall
           Street Journal ceases publishing that rate); or
           (b) the maximum rate allowed by law.
           c.  Without Demand; No Setoff

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               Tenant shall pay all rent without prior notice or demand.
           Tenant's agreements to pay rent and other amounts under this Lease
           are independent covenants, and except as this Lease provides
           otherwise, Tenant may not setoff, abate, deduct or fail to pay any
           such amounts for any reason.
           d.  Acceptance on Account
               Landlord may treat any payment of rent (or any other sum) that is
           less than the amount due as a payment on account, and Landlord's
           acceptance of the lesser amount does not prejudice its other rights
           or remedies.

5.   SECURITY DEPOSIT - N/A

6.   TENANT'S USE OF PREMISES
     Tenant may use the Premises only for general office purposes.

7.   REAL ESTATE TAXES ("RET")
     7.1.  Payment by Tenant
           Tenant shall pay Landlord that part of RET as the total rentable
     floor area of the Premises bears to all rentable floor area in the building
     of which the Premises are a part. Tenant shall pay its share of RET for a
     calendar year in monthly installments, in amounts estimated by Landlord, on
     the first day of each month of that calendar year. After each calendar
     year, Landlord shall notify Tenant of its share of RET for that year.
     Landlord shall credit any excess to amounts to be paid by Tenant for the
     following year. Tenant shall pay any deficiency to Landlord promptly.

     7.2.  RET Defined
           RET includes all real estate taxes, charges and assessments by
     governmental and quasi-governmental authorities. RET also includes any
     governmental tax or charge (other than income tax) imposed on account of
     Tenant's payment or Landlord's receipt of, or based in whole or in part on,
     the rents in this Lease, the value of those rents or Landlord's interest in
     the Premises. RET also includes any substitutions or partial substitutions
     for or additions to RET, if the substitute or additional taxes have
     materially different applicability to real property, to owners of real
     property, or to rental income than they do to other kinds of property, to
     owners of other kinds of property, or to other kinds of income,

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     respectively. RET also includes all of Landlord's costs and fees to contest
     or negotiate RET with the taxing authority.

8.   INSURANCE
     Tenant shall carry commercial general liability insurance (including
     coverage for bodily injury, property damage, contractual liability, and
     personal injury), written on an occurrence form, and with policy limits
     approved by Landlord. All of the liability insurance shall be primary to
     any coverage carried by Landlord. Tenant shall name Landlord and Landlord's
     lender as additional insureds under the liability insurance (and shall
     otherwise comply with the liability insurance requirements of Landlord's
     lender). Tenant shall give Landlord insurance certificates showing that the
     insurance required above is in force and stating the terms of the policies.
     The certificates must require the insurer to give Landlord at least 30
     days' notice before coverage under any policy is reduced or canceled and
     before any policy expires, if the insurer intends not to renew the policy.

9.   MAINTENANCE OF PREMISES
     Tenant shall maintain in good repair and replace when necessary the
     interior of the Premises, including mechanical and utility systems (e.g.,
     HVA/C, lighting, other electrical, plumbing, and telephone) within the
     Premises. Tenant also shall make all changes and improvements to the
     Premises required by law because of any feature of Tenant's operations
     beyond general office purposes.

10.  MAINTENANCE OF COMMON AREAS
     Landlord shall operate, maintain, and replace (when necessary) the Common
     Area. Landlord also shall carry property and liability insurance in amounts
     and types deemed prudent by Landlord.

     Tenant shall pay Landlord that part of CAM costs as the total rentable
     floor area of the Premises bears to all rentable floor area in the building
     of which the Premises are a part. Tenant shall pay its share of CAM costs
     for a calendar year in monthly installments, in amounts estimated by
     Landlord, on the first day of each month of that calendar year. After each
     calendar year, Landlord shall notify Tenant of its share of CAM costs for
     that year. Landlord shall credit any excess to amounts to be paid by

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     Tenant for the following year. Tenant shall pay any deficiency to Landlord
     promptly.

     "CAM costs" are all of Landlord's costs to perform its obligations under
     this ss.10, including an administrative fee equal to 15% of all of such
     costs.

11.  UTILITIES AND SERVICES
     Tenant shall pay promptly all charges for sewer, gas, electricity, water
     and all other utility services consumed at the Premises. If Tenant defaults
     under this Lease, Landlord may discontinue any utility and services that
     Landlord has been supplying to Tenant, without notice or liability to
     Tenant, including water, gas, electricity, sewer, heating, and
     air-conditioning. Landlord is not liable to Tenant for any interruption in
     service of any utility at the Premises or the property of which the
     Premises are a party, and Tenant waives all claims (including claims for
     consequential damages) against Landlord connected with the interruption of
     any utility service at the Premises or the property.

12.  ASSIGNMENT/SUBLETTING
     Tenant may not assign its interest in this Lease or sublet all or any part
     of the Premises without Landlord's prior consent. However, no assignment by
     Tenant releases Tenant from its obligations under this Lease.

13.  INDEMNITY
     Tenant shall indemnify Landlord, defend it (if requested by Landlord) and
     hold Landlord harmless from and against all any cost, damage, expense,
     liability, and loss in connection with any occurrence connected with the
     Premises.

14.  CASUALTY DAMAGE
     14.1. Termination Rights
           Either party may terminate this Lease by notice within 15 days after
     the casualty if the damage is so extensive that rebuilding (i) cannot
     reasonably be accomplished within 180 days following the occurrence; or
     (ii) would require 30 days or more to accomplish and such damage or
     destruction occurs within the last year of the lease term.

     If the building of which the Premises are a part is damaged by casualty and
     the cost to rebuild exceeds 50% of the cost to rebuild the entire building,
     then Landlord may terminate

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     this Lease effective as of the date of the casualty by notifying Tenant
     within 15 days after the casualty.

     If the building of which the Premises are a part (but not the Premises) is
     damaged by casualty during the last year of the lease term, Landlord may
     terminate this Lease on 5 days' notice, within 15 days after the casualty.

     14.2. Rebuilding
     If the Premises are damaged by a casualty covered by insurance that
     Landlord carries, and if neither party elects to terminate the Lease,
     Landlord shall promptly rebuild them to their condition before the casualty
     within 180 days after the casualty (excluding stock in trade, fixtures,
     furniture, furnishings, carpeting, floor covering, wall covering, drapes
     and equipment and any improvements or alterations installed by Tenant).
     However, Landlord is not obligated to spend more to rebuild than the
     insurance proceeds available. Rent adjusts in proportion to that part of
     the Premises, if any, that Tenant cannot occupy.

15.  CONDEMNATION
     15.1. Definitions
           "Condemnation" means a taking by exercise of the power of eminent
     domain and any conveyance in lieu of such a taking, whether permanent or
     temporary (more than 6 months) for any public or quasi-public use by any
     competent authority in appropriate proceedings, and includes any
     governmental action preventing or substantially restricting use of the
     Premises for permitted activities or of the Common Area for access and
     parking for more than 6 consecutive months. The "date of condemnation" is
     the date the condemning authority takes possession of the condemned area.

     15.2. Right to Terminate
     If any of the Premises are taken by condemnation to the extent that they
     are untenantable and cannot be restored to a tenantable whole within 90
     days after a taking, either Landlord or Tenant may terminate this Lease by
     notice to Landlord within 15 days after the date of condemnation. Rent
     adjusts in proportion to that part of the Premises that Tenant cannot
     occupy. If this Lease so terminates, rent abates as of the date of
     termination.

     15.3. Rebuilding

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     If neither party elects to so terminate the Lease, Landlord shall promptly
     rebuild the Premises to a complete unit of a quality and character as close
     as practical to that which existed before the condemnation, using available
     condemnation proceeds.

     15.4. Award
           The condemnation award belongs to Landlord. However, Tenant may seek
     a separate award for its losses as long as Tenant's award does not diminish
     Landlord's award.

16.  DEFAULT
     16.1. Monetary Default
           Tenant defaults under this Lease if it fails to pay any rent or any
     other charges within 5 days after Landlord notifies Tenant of the failure
     to pay.

     16.2. Non-Monetary Default
           Tenant defaults under this Lease if it fails to do anything it is
     required to do under this Lease other than payment of rent or any other
     charges, or does anything it is not permitted to do under this Lease,
     within 30 days after notice from Landlord specifying the failure or
     violation; or if the failure or violation cannot be cured by due diligence
     within the 30 day period, then if Tenant fails to begin curing within the
     30 day period or fails to continue curing with due diligence after the 30
     day period.

17.  REMEDIES
     If Tenant defaults, Landlord may treat the default as a breach of this
     Lease, and in addition to any and all other rights or remedies of Landlord
     in this Lease or at law or in equity, Landlord may do any or all of the
     following, without further notice or demand to Tenant or any other person:

     17.1. General
           Landlord may declare the Lease Term ended (even though it may have
     relet the Premises as provided under this Lease) and may re-enter and
     re-take possession of the Premises and remove all persons and property from
     the Premises.

     17.2. Money Damages
           If Landlord terminates this Lease under this ss.17, Tenant shall pay
     to Landlord, in addition to any other amounts Tenant is obligated to pay to
     Landlord under this

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Lease:
           a.  Past rent
               any unpaid rent, including interest, that is due when the Lease
           is terminated; plus
           b.  Future rent
               1.  Post-termination, pre-judgment
                   that rent, including interest, that would have been earned
               after termination until the time of judgment, plus
               2.  Post-judgment
                   the present value (using a discount rate of 5%) of the
               excess, if any, of the total rent and charges under this Lease
               for the remainder of the Lease Term over the then reasonable
               rental value of the Premises for the remainder of the Lease Term.
               The total rent payable by Tenant for each Lease Year after
               default equals the average Minimum Annual and Percentage Rents
               that Tenant was obligated to pay from the Rent Commencement Date
               to the time of default or during the 2 full Lease Years before
               default, whichever period is shorter; plus
           c.  Recycling costs
               any other amount necessary to compensate Landlord for its damages
           caused by Tenant's failure to perform its obligations under this
           Lease, such as costs to re-enter and retake possession of the
           Premises and remove all persons and property from the Premises, to
           alter, repair, and decorate the Premises, and reasonable attorneys'
           fees, brokerage commissions, advertising, and other reletting costs;
           plus
           d.  Other legal damages
               such other amounts, in addition to or in lieu of the foregoing,
           as may be permitted from time to time by applicable law.

           Nothing in this Lease limits Landlord's right to recover as damages
     in any bankruptcy, insolvency, receivership, reorganization or arrangement
     proceeding the maximum allowed by the law then governing such proceedings,
     even if that amount is greater than the amount Landlord may recover under
     this Lease.

     17.3. Rent Suit; No Re-entry/Termination
           Landlord may sue to collect rent (as it accrues under this Lease) and
     damages (including reasonable attorneys' fees and the cost to renovate the
     Premises) without

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     retaking possession of the Premises or terminating this Lease;

     17.4. Re-entry without Termination
           Landlord may re-enter and retake possession of the Premises from
     Tenant by summary proceedings or otherwise and remove Tenant and any other
     occupants from the Premises in such manner as Landlord deems advisable with
     or without legal process and using self-help if necessary. Landlord also
     may remove from the Premises all or any of the personal property in the
     Premises and may place it in storage at a public warehouse at the expense
     and risk of the owner or owners thereof. "Re-enter" or "re-entry" as used
     in this Lease are not restricted to their technical meaning but are used in
     their broadest sense. Neither Landlord's commencement and prosecution of
     any action in unlawful detainer, ejectment or otherwise, nor Landlord's
     execution of any judgment or decree obtained in any action to recover
     possession of the Premises, nor any other re-entry and removal, terminates
     this Lease, (even if the re-entry is done under summary proceedings or
     otherwise) or discharges Tenant from any obligation under the Lease. In any
     of such events, Tenant remains obligated to pay Rent and to perform all of
     its other obligations under this Lease, and Tenant shall pay to Landlord
     all monthly deficits in Rent, after any such re-entry, in monthly
     installments as the amounts of such deficits from time to time are
     ascertained. If Landlord retakes possession, Landlord may relet parts or
     all of the Premises for terms greater or less than or equal to the
     unexpired part of the Lease Term on such terms and conditions and for such
     rent as the Landlord deems proper. Landlord shall apply the rent from such
     reletting (if and when received): first, to pay any indebtedness other than
     Rent due under this Lease from Tenant to Landlord; second, to pay any cost
     to relet (including costs to alter, repair or decorate the Premises as
     Landlord deems advisable); third, to pay Rent due and unpaid under this
     Lease; and the residue, if any, to be held by Landlord and applied to pay
     future Rent as it becomes due. If the rent received from reletting, after
     being applied as required in this ss.17, is not enough to pay the Rent
     under this Lease, then Tenant shall pay such deficiency to Landlord each
     month. Tenant has no right to any excess. Tenant also shall pay to
     Landlord, as soon as ascertained, any costs to relet, alter, and repair not
     covered by the rent received from reletting, including brokerage
     commissions and attorneys' fees. Nothing in this

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     Lease obligates Landlord to relet all or any part of the Premises.

18.  MISCELLANEOUS
     18.1. Quiet Enjoyment
           If Tenant performs its obligations under this Lease, Tenant may
     peaceably and quietly hold and enjoy the Premises for the term of this
     Lease without interruption by Landlord.

     18.2. Recording
           Neither party may record this Lease. At either party's request, each
     party shall sign a recordable memorandum of lease containing the terms
     required by statute. Either party may record the memorandum, at the
     recording party's cost, including taxes, fees and other expenses connected
     with recording.

     18.3. Lease Subject to Matters of Record
           This Lease is subject to all matters of record at the date of this
     Lease and to any interests created during the Lease Term. Tenant may not
     violate any restrictions and conditions of record. Unless requested
     otherwise by a lender as to its lien, this Lease is also subject to the
     liens resulting from any method of financing, whether created before or
     during the Lease Term, and to all renewals, modifications, replacements,
     consolidations and extensions of the liens. Tenant shall sign and deliver
     all documents requested by Landlord, a lender, or other interest owner to
     further evidence the subordination.

     18.4. Transfer of Landlord's Interest
           If Landlord transfers any of its interest in any of
     this Lease or the property of which the Premises are a part (including
     assignment of this Lease to a mortgagee as security and any subsequent
     transfer by foreclosure sale), Tenant shall attorn to the transferee (or,
     in the case of conditional assignments, shall agree to attorn to the
     assignee if the condition occurs) and shall recognize the transferee as
     Landlord under this Lease. At Landlord's request, Tenant shall sign an
     attornment agreement in the form required by Landlord. If Landlord
     transfers its entire interest in this Lease, its obligations under this
     Lease terminate on the date of the transfer (including obligations
     regarding any Security Deposit transferred to the transferee-Landlord).

<PAGE>   12

     18.5. Estoppel Certificate
           Tenant shall sign and deliver to any person designated by Landlord
     recordable certificates that (a) ratify this Lease; (b) state the
     commencement and termination dates; and (c) state that this Lease is in
     full force and has not been assigned or amended (except as stated); (d)
     state that all conditions under this Lease to be performed by Landlord have
     been satisfied (stating exceptions, if any); (e) state that neither Tenant
     nor Landlord is in default under the Lease or have failed to perform their
     obligations under the Lease (or stating the default or the failure); (f)
     state that no defenses or offsets against the enforcement of this Lease by
     Landlord exist (or, if any, stating those claimed), (g) state the advance
     rent, if any, paid by Tenant, (h) state the date to which rent has been
     paid, (i) state the amount of any security deposited with Landlord, and (j)
     contain such other information as Landlord reasonably requires. The
     certificate binds Tenant, and those receiving the certificate may rely on
     it.

     18.6. Signing Documents
           Tenant shall sign and return documents required under this ss.18
     within 10 days after receiving them.

     18.7. Lender's Approval of Lease
           The approval of Landlord's construction and permanent lenders is a
     condition subsequent to this Lease.

     18.8. Limitation on Landlord's Liability
           Landlord's liability under this Lease is limited to its interest in
     the property of which the Premises are a part, and no person or entity that
     constitutes Landlord has any personal liability under this Agreement.

     18.9. Partial Invalidity
           If any provision of this Lease is unenforceable, all other provisions
     remain enforceable.

     18.10.Governing Law
           This Lease shall be construed under the laws of the state in which
     the Premises are located.

     18.11.Cost of Performance
           Except as provided otherwise in this Lease, the party obligated or
     permitted to perform is obligated, as between Tenant and Landlord, to pay
     the cost of performance.

<PAGE>   13

     18.12.Include, Shall, May
           "Include," "includes," and "including" mean
     considered as part of a larger group, and not limited to
     the items recited.  "Shall" means "is obligated to";
     "may" means "is permitted to, but is not obligated to."

     18.13.Section, Exhibit, party
           References to a section or exhibit refer to the section or exhibit of
     this Lease unless otherwise expressly indicated. A "party" means Tenant and
     Landlord. Each document referred to as an exhibit is made a part of this
     Lease as if set forth in this Lease in full.

     18.14.Right of Entry
           Landlord and its agents may enter and examine the Premises at
     reasonable times.

     In witness whereof, the parties have hereunto fixed or set their hands and
seals, or if corporate, have caused this instrument to be signed in its
corporate name by its duly authorized officers and its seal to be hereunto
affixed by authority of its Board of Directors, as of the date first written
above.

                                           Landlord:

                                           MMG Investments, LLC (SEAL)

                                                                (SEAL)
                                           ---------------------
                                           M. Mark Cole, Manager

                                           Tenant:

                                           Southern Showcase Housing, Inc.

ATTEST:                                    -----------------------
                                                         President
                                           --------------

---------------------------
                  Secretary
------------------
(corporate seal)<PAGE>   1
                                                                   Exhibit 10.36

                                 LEASE AMENDMENT

Date of Amendment:  As of July 1, 1998

Date of Lease:      As of June 30, 1997

Landlord:           MMG Investments, LLC
                    c/o Southern Showcase Housing, Inc.
                    4604 Dundas Drive
                    Greensboro, NC  27407

Tenant:             Southern Showcase Housing, Inc.
                    4604 Dundas Drive
                    Greensboro, NC  27407

Premises:           That part of the building located 4604
                    Dundas Drive as indicated on the attached
                    floor plan, comprising 5,220 SF of usable
                    area and 6,152 SF of rentable area; plus all
                    or part, at Tenant's option, of the
                    remaining usable area and rentable area in
                    the building, which total remaining area
                    comprises an additional 5,777 SF of usable
                    area and 6,808 SF of rentable area, which
                    part, when identified by Tenant as provided
                    in this Lease Amendment, will be shown on a
                    marked floor plan to be incorporated into
                    the Lease as an exhibit depicting the exact
                    configuration of the Premises

RECITALS:
     Under the Lease, Tenant leased roughly the south half of the building (the
"Existing Space"). Tenant now wants to reserve the remaining north half of the
building (the "Reservation Space") and agrees to pay $4.00 per rentable sq. ft
for the Reservation Space, plus full CAM Costs and RET attributable to the
Reservation Space, until such time as Tenant takes occupancy of any part of the
Reservation Space as Tenant wants to occupy (the "Expansion Space"). When Tenant
takes occupancy of the Expansion Space, rent and other charges attributable to
the Expansion Space will be adjusted to match the rent and other charges for the
Existing Space then due under the Lease based upon the additional square footage
in the Expansion Space.

<PAGE>   2

     In addition, when Tenant gets ready to expand into the Expansion Space,
Tenant either may request that Landlord do the work necessary to upfit the
Expansion Space to the same level of fit and finish as in the Existing Space, or
may do such work itself. If Tenant does such work itself, Tenant may deduct from
the rent otherwise payable for the Expansion Space an amount which, on an
after-tax basis, will allow Tenant to recover its costs to do the work, plus
interest on the unpaid balance at 8% a year.

     Landlord and Tenant want to set forth their agreement in this Lease
Amendment.

AGREEMENT:
     In consideration of the agreements in this Lease Amendment, Landlord and
Tenant agree as follows:

1.   PREMISES and Expansion Work
     The Premises defined as set forth opposite the introductory heading,
"Premises," in the Lease is amended by substituting the Premises set forth
opposite the introductory heading, "Premises," above. All references to the
Premises in the Lease, as amended, shall refer to the Premises as amended by
this Lease Amendment.

     When Tenant wants to occupy the Expansion Space, Tenant shall notify
Landlord of the exact configuration of the Expansion Space and whether Tenant
wants to do the Expansion Work itself or whether Tenant wants Landlord to do the
Expansion Work. The "Expansion Work" is all work to improve the Expansion Space
in the same manner, and to the same level of fit and finish, as the Existing
Space was improved before Tenant's occupancy, including partition walls with an
appropriate finish, carpeting, ceiling lights and ceiling tiles, utility systems
and fixtures, and other office fixtures.

     Whoever does the Expansion Work shall do it promptly and in a good and
workmanlike manner. If Tenant does the Expansion Work, then Tenant may deduct
from the rent otherwise due and payable that monthly amount, not to exceed the
additional rent due for the Expansion Space, that will repay Tenant its
reasonable costs for the Expansion Work, plus interest at 8% a year on the
unrecovered balance, taking into account only the after-tax savings to Tenant
from the rent reductions.

     For example, if the additional rent payable for the Expansion Space were
$9,000 a month, and if state and Federal

<PAGE>   3

taxes combined amounted to 40% of Tenant's income, then Tenant's after-tax
savings for a rent reduction in the full amount of $9,000/mo. would amount to
$5,400. If Tenant's costs to do the Expansion Work were $110,000, and if
interest over the rent deduction period were about $20,000, then Tenant could
deduct the full $9,000/mo for 24 months ($5,400 X 24 = $129,600 = $110,000 +
$19,600)

2.   RENT

     Sections 4.1 and 4.2 of the Lease are deleted and replaced by the
following:

     4.1.  General
           a.  Rent Commencement Date - Date of this Lease
               Amendment

<TABLE>
<CAPTION>

Lease
Year    PSF Rent    Annual Rent    Monthly Rent
<S>    <C>         <C>            <C>
1       $ 15.00     $ 92,280.00    $ 7,690.00
2       $ 15.45     $ 95,048.40    $ 7,920.70
3       $ 15.91     $ 97,878.32    $ 8,156.53
4       $ 16.39     $100,831.28    $ 8,402.61
5       $ 16.88     $103,845.76    $ 8,653.81
6       $ 17.39     $106,983.28    $ 8,915.27
7       $ 17.91     $110,182.32    $ 9,181.86
8       $ 18.45     $113,504.40    $ 9,458.70
9       $ 19.00     $116,888.00    $ 9,740.67
10      $ 19.57     $120,394.64    $10,032.89
</TABLE>

Commencing on the Rent Commencement Date and until the date of this Lease
Amendment, Tenant shall pay Landlord rent in arrears, on the first day of each
month, partial months prorated, in the following monthly rent amount (based on
6,152 rentable square feet and an annual rent increase of 3%):

           b.  Date of this Lease Amendment - Expansion Date

               Commencing on the date of this Lease Amendment and until an
           Expansion Date, Tenant shall pay Landlord rent in arrears, on the
           first day of each month, partial months prorated, in the following
           monthly rent amount (based on 6,152 rentable square feet at the PSF
           Rent below and an annual rent increase of 3%, plus 6,808 rentable
           square feet at $4.00 per sq. ft):

<PAGE>   4

<TABLE>
<CAPTION>

      PSF Rent  Annual       Annual
      on        Rent on      Rent on
Lease Existing  Existing     Expansion                Monthly
Year  Space     Space        Space       Total        Rent
<S>  <C>       <C>          <C>         <C>          <C>
1     $15.00    $ 92,280.00  $27,232.00  $119,512.00  $ 9,959.33
2     $15.45    $ 95,048.40  $27,232.00  $122,280.40  $10,190.03
3     $15.91    $ 97,878.32  $27,232.00  $125,110.32  $10,425.86
4     $16.39    $100,831.28  $27,232.00  $128,063.28  $10,671.94
5     $16.88    $103,845.76  $27,232.00  $131,077.76  $10,923.15
6     $17.39    $106,983.28  $27,232.00  $134,215.28  $11,184.61
7     $17.91    $110,182.32  $27,232.00  $137,414.32  $11,451.19
8     $18.45    $113,504.40  $27,232.00  $140,736.40  $11,728.03
9     $19.00    $116,888.00  $27,232.00  $144,120.00  $12,010.00
10    $19.57    $120,394.64  $27,232.00  $147,626.64  $12,302.22
</TABLE>

           c.  After Expansion Date

<TABLE>
<CAPTION>

                Annual
      PSF Rent  Rent on      PSF Rent    Annual
      on        Existing &   on Reser-   Rent on      Total
Lease Existing  Expansion    vation      Reservation  Annual       Monthly
Year  Space     Space        Space       Space        Rent         Rent
<S>  <C>       <C>          <C>         <C>          <C>          <C>
1     $15.00    $168,870.00  $4.00       $6,808.00    $175,678.00  $14,639.83
2     $15.45    $173,936.10  $4.00       $6,808.00    $180,744.10  $15,062.01
3     $15.91    $179,114.78  $4.00       $6,808.00    $185,922.78  $15,493.57
4     $16.39    $184,518.62  $4.00       $6,808.00    $191,326.62  $15,943.89
5     $16.88    $190,035.04  $4.00       $6,808.00    $196,843.04  $16,403.59
6     $17.39    $195,776.62  $4.00       $6,808.00    $202,584.62  $16,882.05
7     $17.91    $201,630.78  $4.00       $6,808.00    $208,438.78  $17,369.90
8     $18.45    $207,710.10  $4.00       $6,808.00    $214,518.10  $17,876.51
9     $19.00    $213,902.00  $4.00       $6,808.00    $220,710.00  $18,392.50
10    $19.57    $220,319.06  $4.00       $6,808.00    $227,127.06  $18,927.26
</TABLE>

               On and after an Expansion Date, Tenant shall pay Landlord rent in
               arrears, on the first day of each month, partial months prorated,
               in an amount which pays to Landlord the same per square foot rent
               for the Expansion Space as is then due to the Landlord for the
               Existing Space. Tenant will continue to pay $4.00 PSF for any
               unfinished Reservation Space not included in the Expansion Space.
               For example, if the Expansion Space identified by Tenant
               comprises 75% of the Reservation Space, then Tenant shall pay the
               following monthly rent amount (based on 12,960 rentable square
               feet at the PSF Rent below and an annual rent increase of 3%):

     4.2.  Rent Commencement Date; Expansion Date; Lease Year The Rent
           Commencement Date is October 1, 1997.  The

<PAGE>   5

     Expansion Date is the date 30 days after the Expansion Work (see
     Paragraph. 1 above) has been substantially completed. A "Lease Year" is a
     12-month period beginning on the Rent Commencement Date (or its
     anniversary) and ending on the day before the following anniversary date.

3.   MISCELLANEOUS

     3.1.  Effect of Amendment
     Except as amended by this Lease Amendment, the Lease continues in full
     force.

     3.2.  Recording
           Neither party may record this Lease Amendment. At either party's
     request, each party shall sign a recordable memorandum of lease containing
     the terms required by statute. Either party may record the memorandum, at
     the recording party's cost, including taxes, fees and other expenses
     connected with recording.

     3.3.  Defined Terms
           Words capitalized in this Lease Amendment but not defined in this
     Lease Amendment have the meaning given them in the Lease.

     In witness whereof, the parties have hereunto fixed or set their hands and
seals, or if corporate, have caused this instrument to be signed in its
corporate name by its duly authorized officers and its seal to be hereunto
affixed by authority of its Board of Directors, as of the date first written
above.

LANDLORD:                     TENANT:
MMG Investments, LLC          Southern Showcase Housing, Inc.

---------------------------   -------------------------------
M. Mark Cole, Manager                         President
                              ----------------

                              ATTEST:

                              -------------------------------
                                              Secretary
                              ---------------

                                (corporate seal)

<PAGE>   6

                              Approved as to business terms:
                              Champion Home Centers, Inc.
                              By:  Champion Enterprises, Inc.

                              -------------------------------
                              Joe Stegmayer, Chief Financial
                              Officer

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