Document:

EXHIBIT 10.1

                     LEASE BETWEEN CENTRAL MATRIX, LLC. AND
                      RU HUA SONG/TOP GROUP HOLDINGS, INC.

<PAGE>

EXHIBIT 10.1

                  Dated        June   7,   2005

                   By and Between (Lessor) CENTRAL MATRIX, LLC
                                           --------------------

                  (Lessee) RU HUA SONG/TOP GROUP HOLDINGS, INC.
                           ------------------------------------

           Address of Premises: 9611 LAS TUNAS DRIVE, TEMPLE CITY, CA
                                -------------------------------------

 Paragraph 51
           --

 A.      RENT ADJUSTMENTS:

     The monthly rent for each month of the adjustment period(s) specified below
shall be increased using the method(s)  indicated below:  (Check Method(s) to be
Used and Fill in Appropriately) D I. Cost of Living Adjustment(s) (COLA)

          A.  On (Fill in COLA Dates):__________________________________________

the Base Rent  shall be  adjusted  by the  change,  if any,  from the Base Month
specified  below, in the Consumer Price Index of the Bureau of Labor  Statistics
of the U.S.  Department of Labor for (select one): [_] CPI W (Urban Wage Earners
and  Clerical  Workers) or [_] CPI U (All Urban  Consumers),  for (Fill in Urban
Area):

_____________________________________________________________________, All Items
 (1982-1984 - 100), herein referred to as "CPI"

     b. The monthly rent payable in accordance  with  paragraph  A.l.a.  of this
Addendum  shall be calculated  as follows:  the Base Rent set forth in paragraph
1.5 of the attached  Lease,  shall be  multiplied by a fraction the numerator of
which  shall be the CPI of the  calendar  month 2 months  prior to the  month(s)
specified in paragraph  A.l.a.  above  during  which the  adjustment  is to take
effect,  and the  denominator  of which shall be the CPI of the  calendar  month
which is 2 months prior to (select one): [_] the first month of the term of this
Lease as set forth in paragraph  1.3 ("Base  Month") or [_] (Fill in Other "Base
Month"):_________.  The sum so calculated  shall constitute the new monthly rent
hereunder,  but in no event,  shall any such new  monthly  rent be less than the
rent payable for the month immediately preceding the rent adjustment.

     c. In the  event the  compilation  and/or  publication  of the CPI shall be
transferred to any other governmental department or bureau or agency or shall be
discontinued,  then the index  most  nearly the same as the CPI shall be used to
make  such  calculation.  In the event  that the  Parties  cannot  agree on such
alternative  index,  then the matter  shall be  submitted  for  decision  to the
American  Arbitration  Association'  in  accordance  with the then rules of said
Association  and the  decision  of the  arbitrators  shall be  binding  upon the
parties. The cost of said Arbitration shall be paid equally by the Parties.

[_]       II.      Market Rental Value Adjustment's) (MRV)

     a. On (Fill in MRV Adjustment Date(s):_____________________________________
the Base Rent shall  be adjusted to the "Market Rental Value" of the property as
follows:

              1) Four months prior to each Market Rental Value  Adjustment  Date
 described  above, the Parties shall attempt to agree upon what the new MRV will
 be on the adjustment date. If agreement cannot be reached within 30 days, then:

                        (a) Lessor  and  Lessee   shall  immediately   appoint a
mutually acceptable appraiser or broker to establish the new MRV within the next
30 days. Any associated costs will be split equally between the Parties, or

                        (b)  Both Lessor  and  Lessee  shall  each   immediately
make a reasonable  determination  of the MRV and submit such  determination,  in
writing, to arbitration in accordance with the following provisions:

                                  (i)  Within  15  days   thereafter, Lessor and
Lessee  shall each select an [_]  appraiser or [_] broker  ("Consultant"-  check
one) of their choice to act as an arbitrator.  The two  arbitrators so appointed
shall  immediately  select a third  mutually  acceptable  Consultant to act as a
third arbitrator.

                                  (ii) The 3 arbitrators  shall  within  30 days
of the  appointment  of the third  arbitrator  reach a  decision  as to What the
actual MRV for the Premises is, and whether  Lesson's or Lessee's  submitted MRV
is the closest thereto.  The decision of a majority of the arbitrators  shall be
binding on the Parties.  The submitted MRV which is determined to be the closest
to the actual MRV shall thereafter be used by the Parties.

                                  (iii) If  either  of  the  Parties   fails  to
appoint an  arbitrator  within the  specified  15 days,  the  arbitrator  timely
appointed  by one of them  shall  reach a decision  on his or her own,  and said
decision shall be binding on the Parties.

                                  (iv) The entire cost of such arbitration shall
be paid by the party whose  submitted MRV is not selected,  i.e. the one that is
NOT the closest to the actual MRV.

              2) Notwithstanding  the foregoing,  the new  MRV shall not be less
than the rent payable for the month immediately preceding

                                                                    Initials:_

                             RENT ADJUSTMENT(S) Page
                                     1 of 2

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     b. Upon the establishment of each New Market Rental Value:

              1) the new MRV will  become the new "Base Rent" for the purpose of
calculating any further Adjustments, and
              2) the first month of each Market  Rental  Value term shall become
the new "Base Month" for the purpose of calculating any further Adjustments.

[X]        III.     Fixed Rental Adjustment(s) (FRA)

The Base Rent shall be increased to the following amounts on the dates set forth
below:

On (Fill in FRA Adjustment Date(s)):            The New Base Rent shall be:

   July 7, 2006                                 $8,530.46/mo
----------------------------------              ---------------------------
   July 7, 2007                                 $8,701.07/mo
----------------------------------              ---------------------------
   July 7, 2008                                 $8,875.09/mo
----------------------------------              ---------------------------
   July 7, 2009                                 $9,052.60/mo
----------------------------------              ---------------------------

 B.  NOTICE:

     Unless specified  otherwise herein,  notice of any such adjustments,  other
 than Fixed  Rental  Adjustments,  shall be made as specified in paragraph 23 of
 the Lease.

 C.  BROKER'S FEE:

The Brokers shall be paid a Brokerage Fee for each adjustment specified above in
accordance with paragraph 15 of the Lease.

Initials: _________                                          Initials: _________

<PAGE>

1. Basic Provisions ("Basic Provisions").

     1.1 Parties.  This Lease ("Lease"),  dated for reference purposes only June
7, 2005 by and between  Central Matrix.  LLC  ("Lessor"),  Ru Hua Song/Top Group
Holdings, Inc. lessee (collectively the "Parties," or individually a "Party").

     1.2  Premises.  That  certain real  property,  including  all  improvements
therein or to be  provided  by Lessor  under the terms of this  Lease,  commonly
known as 9611 Las  Tunas  Drive,  Temple  City,  located  in the  County  of Los
Angeles, State of California 91780, and generally described as (describe briefly
the nature of the property and, if applicable, the "Project", if the property is
located  within  a  Project)  9611 Las  Tunas  Drive.  Temple  City.  CA  01780,
("Premises"). (See also Paragraph 2)

     1.3 Term: 5 years and 0 months  ("Original  Term")  commencing July 7, 2005
("Commencement  Date") and ending July 7, 2010  ("Expiration  Date").  (See also
Paragraph 3)

     1.4  Early  Possession:_________   ("Early  Possession  Date").  (See  also
Paragraphs 3.2 and 3.3)

     1.5 Base Rent: $ 8,363.20 per month ("Base  Rent"),  payable on the 1st day
of each month  commencing July 7, 2005 (See also Paragraph 4) [_] If this box is
checked, there are provisions in this Lease for the Base Rent to be adjusted.

     1.6 Base Rent and Other Monies Paid Upon Execution:

         (a) Base Rent: $8,363.20 for the period July 7, 2005 to August 7, 2006
         (b) Security Deposit: $ 16,726.40 ("Security Deposit"). (See also Para-
             graph 5)
         (c) Association Fees: $0 for the period _______________________
         (d) Other: $____________________ for __________________________________
         (e) Total Due Upon Execution of this Lease: $ 25,089.60.

     1.7 Agreed Use: FOR A RETAIL BOOKSTORE,  INCLUDING THE SALE OF DVDS, VCD'S,
PRE-RECORDED MUSIC, GIFTS, STATIONER, OFFICE SUPPLIES, SPORTING GOODS, AND OTHER
RELATED MERCHANDISE. (See also Paragraph6)

     1.8  Insuring  Party.  Lessor is the  "Insuring  Party".  The annual  "Base
Premium" is $_______________ (See also Paragraph 8)

     1.9 Real Estate Brokers: (See also Paragraph 15)

          (a)  Representation. The following real estate brokers (the "Brokers")
and brokerage  relationships exist in this transaction
(check applicable boxes):

[X] Coldwell  Banker  George Realty  represents  Lessor  exclusively  ("Lessor's
Broker");
[X] Landful Investment represents Lessee exclusively ("Lessee's Broker"); or
[_] ____________________________________________________________ represents both
Lessor and Lessee ("Dual Agency").

          (b) Payment to Brokers.  Upon  execution and delivery of this Lease by
both Parties, Lessor shall pay to the Broker the fee agreed to in their separate
written  agreement  (or if there is no such  agreement,  the sum of  ________ or
______% of the total  Base  Rent) for the  brokerage  services  rendered  by the
Brokers.

     1.10  Guarantor.  The  obligations of the Lessee under this Lease are to be
guaranteed by Ru Hua Song ("Guarantor). (See also Paragraph 37)

     1.11  Attachments.   Attached  hereto  are  the  following,  all  of  which
constitute a part of this Lease:

[X] an Addendum consisting of Paragraphs 51 through 52;
D a plot plan depicting the Premises;
D a current set of the Rules and Regulations;
D a Work Letter;
[_] other (specify):____________________________________________________________

2.     Premises.

     2.1 Letting.  Lessor hereby leases to Lessee, and Lessee hereby leases from
Lessor,  the Premises,  for the term, at the rental,  and upon all of the terms,
covenants and  conditions  set forth in this Lease.  Unless  otherwise  provided
herein, any statement of size set

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Initials                              PAGE 1 of 15                      Initials

(C)2002- AIR Commercial Real Estate Association                  FORM STG-e-7/01

forth in this  Lease,  or that may have been  used in  calculating  Rent,  is an
approximation  which the Parties  agree is  reasonable  and any  payments  based
thereon are not  subject to  revision  whether or not the actual size is more or
less. Note:  Lessee is advised to verify the actual size prior to executing this
Lease.
     2.2 Condition.  Lessor shall deliver the Premises to Lessee broom clean and
free of debris on the Commencement Date or the Early Possession Date,  whichever
first occurs  ("Start  Date"),  and, so long as the required  service  contracts
described in Paragraph  7.1(b) below are obtained by Lessee and in effect within
thirty days  following the Start Date,  warrants  that the existing  electrical,
plumbing, fire sprinkler,  lighting,  heating,  ventilating and air conditioning
systems ("HVAC"), loading doors, sump pumps, if any, and all other such elements
in the  Premises,  other than  those  constructed  by  Lessee,  shall be in good
operating condition on said date and that the surface and structural elements of
the roof,  bearing  walls and  foundation  of any buildings on the Premises (the
"Building")  shall be free of material  defects.  If a non-compliance  with said
warranty  exists as of the Start  Date,  or if one of such  systems or  elements
should malfunction or fail within the appropriate warranty period, Lessor shall,
as Lessor's  sole  obligation  with respect to such matter,  except as otherwise
provided in this Lease,  promptly  after  receipt of written  notice from Lessee
setting  forth with  specificity  the nature and extent of such  non-compliance,
malfunction or failure,  rectify same at Lessor's expense.  The warranty periods
shall be as follows: (i) 6 months as to the HVAC systems, and (ii) 30 days as to
the remaining  systems and other  elements of the  Building.  If Lessee does not
give  Lessor  the  required  notice  within  the  appropriate  warranty  period,
correction  of any such  non-compliance,  malfunction  or  failure  shall be the
obligation  of Lessee at Lessee's  sole cost and  expense,  except for the roof,
foundations, and bearing walls which are handled as provided in paragraph 7.
     2.3  Compliance.  Lessor  warrants  that the  improvements  on the Premises
comply with the building codes,  applicable  laws,  covenants or restrictions of
record,  regulations,  and ordinances  ("Applicable  Requirements") that were in
effect at the time that each improvement,  or portion thereof,  was constructed.
Said  warranty  does not apply to the use to which Lessee will put the Premises,
modifications  which may be required by the Americans with  Disabilities  Act or
any  similar  laws as a result of  Lessee's  use (see  Paragraph  50), or to any
Alterations or Utility Installations (as defined in Paragraph 7.3(a)) made or to
be made by Lessee.  NOTE: Lessee l>> responsible for determining  whether or not
the Applicable  Requirements,  and especially the zoning,  are  appropriate  for
Lessee's  intended use, and  acknowledges  that past uses of the Premises may no
longer be allowed.  If the  Premises do not comply  with said  warranty,  Lessor
shall,  except as otherwise  provided,  promptly after receipt of written notice
from  Lessee  setting  forth  with  specificity  the  nature  and extent of such
non-compliance,  rectify the same at Lessor's  expense.  If Lessee does not give
Lessor written  notice of a  non-compliance  with this warranty  within 6 months
following  the  Start  Date,  correction  of that  non-compliance  shall  be the
obligation  of  Lessee at  Lessee's  sole cost and  expense.  If the  Applicable
Requirements  are  hereafter  changed so as to  require  during the term of this
Lease the construction of an addition to or an alteration of the Premises and/or
Building,  the remediation of any Hazardous  Substance,  or the reinforcement or
other physical  modification of the Unit,  Premises  and/or  Building  ("Capital
Expenditure"),  Lessor  and  Lessee  shall  allocate  the  cost of such  work as
follows:
        (a) Subject to Paragraph 2.3(c) below, if  such Capital Expenditures are
required as a result of the specific and unique use of the Premises by Lessee as
compared with uses by tenants in general,  Lessee shall be fully responsible for
the cost thereof, provided, however that if such Capital Expenditure is required
during  the last 2 years of this  Lease and the cost  thereof  exceeds 6 months'
Base Rent,  Lessee may  instead  terminate  this Lease  unless  Lessor  notifies
Lessee, in writing,  within 10 days after receipt of Lessee's termination notice
that Lessor has elected to pay the  difference  between the actual cost  thereof
and an amount equal to 6 months' Base Rent. If Lessee elects termination, Lessee
shall  immediately  cease the use of the Premises  which  requires  such Capital
Expenditure and deliver to Lessor written notice  specifying a termination  date
at least 90 days thereafter.  Such termination date shall,  however, in no event
be earlier  than the last day that Lessee  could  legally  utilize the  Premises
without commencing such Capital Expenditure.
        (b) If such Capital  Expenditure is not the result of the  specific  and
unique use of the Premises by Lessee (such as,  governmentally  mandated seismic
modifications),  then Lessor and Lessee shall allocate the obligation to pay for
such costs pursuant to the provisions of Paragraph 7.1 (d);  provided,  however,
that if such  Capital  Expenditure  is required  during the last 2 years of this
Lease or if Lessor reasonably determines that it is not economically feasible to
pay its share thereof, Lessor shall have the option to terminate this Lease upon
90 days  prior  written  notice to Lessee  unless  Lessee  notifies  Lessor,  in
writing, within 10 days after receipt of Lessor's termination notice that Lessee
will pay for such Capital  Expenditure.  If Lessor does not elect to  terminate,
and  fails to tender  its  share of any such  Capital  Expenditure,  Lessee  may
advance  such funds and deduct same,  with  Interest,  from Rent until  Lessor's
share of such  costs  have been  fully  paid.  If  Lessee  is unable to  finance
Lessor's  share, or if the balance of the Rent due and payable for the remainder
of this Lease is not  sufficient to fully  reimburse  Lessee on an offset basis,
Lessee shall have the right to terminate this Lease upon 30, days written notice
to Lessor.
     (c)   Notwithstanding   the  above,  the  provisions   concerning   Capital
Expenditures are intended to apply only to  non-voluntary,  unexpected,  and new
Applicable  Requirements.  If the Capital  Expenditures are instead triggered by
Lessee as a result of an actual or proposed  change in use,  change in intensity
of use, or  modification  to the Premises then, and in that event,  Lessee shall
either:  (i) immediately  cease such changed use or intensity of use and/or take
such other steps as may be  necessary  to  eliminate  the  requirement  for such
Capital  Expenditure,  or (ii)  complete  such  Capital  Expenditure  at its own
expense. Lessee shall not, however, have any right to terminate this Lease.
     2.4 Acknowledgements.  Lessee acknowledges that: (a) it has been advised by
Lessor  and/or  Brokers to satisfy  itself with respect to the  condition of the
Premises  (including but not limited to the electrical,  HVAC and fire sprinkler
systems,  security,   environmental  aspects,  and  compliance  with  Applicable
Requirements and the Americans with Disabilities Act), and their suitability for
Lessee's  intended  use,  (b)  Lessee  has made such  investigation  as it deems
necessary  with  reference  to  such  matters  and  assumes  all  responsibility
therefore as the same relate to its occupancy of the  Premises,  and (c) neither
Lessor,   Lessor's   agents,   nor  Brokers   have  made  any  oral  or  written
representations  or  warranties  with respect to said matters  other than as set
forth in this Lease.  In addition,  Lessor  acknowledges  that: (i) Brokers have
made no representations,  promises or warranties  concerning Lessee's ability to
honor the Lease or suitability  to occupy the Premises,  and (ii) it is Lessor's
sole  responsibility to investigate the financial  capability and/or suitability
of all proposed tenants.
     2.5  Lessee  as Prior  Owner/Occupant.  The  warranties  made by  Lessor in
Paragraph  2 shall be of no force or  effect if  immediately  prior to the Start
Date  Lessee was the owner or occupant of the  Premises.  In such event.  Lessee
shall be responsible for any necessary corrective work.
3.     Term.
     3.1 Term. The Commencement Date,  Expiration Date and Original Term of this
Lease are as specified in Paragraph 1.3.
     3.2 Early Possession.  If Lessee totally or partially occupies the Premises
prior to the Commencement  Date, the obligation to pay Base Rent shall be abated
for the  period  of  such  early  possession.  All  other  terms  of this  Lease
(including  but not limited to the  obligations  to pay Real Property  Taxes and
insurance  premiums and to maintain the Premises) shall,  however,  be in effect
during such period.  Any such early  possession  shall not affect the Expiration
Date.
     3.3  Delay  In  Possession.  Lessor  agrees  to use its  best  commercially
reasonable  efforts  to  deliver  possession  of the  Premises  to Lessee by the
Commencement  Date.  If,  despite  said  efforts.  Lessor is  unable to  deliver
possession by such date, Lessor shall not be subject to any liability therefore,
nor shall such  failure  affect the  validity of this Lease.  Lessee  shall not,

<PAGE>

however,  be obligated to pay Rent or perform its other obligations until Lessor
delivers possession of the Premises and any period of rent abatement that Lessee
would  otherwise  have enjoyed shall run from the date of delivery of possession
and  continue for a period  equal to what Lessee  would  otherwise  have enjoyed
under  the  terms  hereof,  but  minus  any days of delay  caused by the acts or
omissions of Lessee.  If possession  is not  delivered  within 60 days after the
Commencement  Date,  Lessee may, at its option,  by notice in writing  within 10
days after the end of such 60 day period,  cancel this lease, in which event the
Parties  shall be discharged  from all  obligations  hereunder.  If such written
notice is not received by Lessor  within said 10 day period,  Lessee's  right to
cancel shall  terminate.  If possession of the Premises is not delivered  within
120 days after the  Commencement  Date, this Lease shall terminate  unless other
agreements are reached between Lessor and Lessee, in writing.

     3.4 Lessee Compliance Lessor shall not be required to deliver possession of
the Premises to Lessee  until Lessee  complies  with its  obligation  to provide
evidence of insurance (Paragraph 8.5). Pending delivery of such evidence, Lessee
shall be required to perform  all of its  obligations  under this Lease from and
after the Start Date,  including  the payment of Rent,  notwithstanding  Lessors
election to withhold  possession  pending receipt of such evidence of insurance.
Further,  if lessee is  required  to perform  any other  conditions  prior to or
concurrent  with the Start Date, the Start Date shall occur but Lessor may elect
to withhold possession until such conditions are satisfied.
     4. Rent.
     4.1. Rent Defined.  All monetary  obligations of Lessee to Lessor under the
terms of this Lease  (except  for the  Security  Deposit)  are deemed to be rent
("Rent").
     4.2 Payment. Lessee shall cause payment of Rent to be received by Lessor in
lawful  money of the  United  States  on or  before  the day on which it is due,
without offset or deduction  (except as  specifically  permitted in this Lease).
Rent for any  period  during  the term  hereof  which is for less  than one full
calendar  month shall be prorated  based upon the actual  number of days of said
month.  Payment of Rent shall be made to Lessor at its address  stated herein or
to such  other  persons or place as Lessor  may from time to time  designate  in
writing.  Acceptance  of a payment  which is less than the amount then due shall
not be a waiver of Lessor's  rights to the balance of such Rent,  regardless  of
Lessor's  endorsement  of any check so  stating.  In the event  that any  check,
draft,  or other  instrument  of payment given by Lessee to Lessor is dishonored
for any reason, Lessee agrees to pay to Lessor the sum of $25 in addition to any
Late Charge and Lessor,  at Its  option,  may require all future  payments to be
made by Lessee to be by  cashier's  check.  Payments  will be  applied  first to
accrued late charges and attorney's fees,  second to accrued  interest,  then to
Base Rent and Operating Expense Increase,  and any remaining amount to any other
outstanding charges or costs.
     4.3  Association  Fees.  In addition to the Base Rent,  Lessee shall pay to
Lessor each month an amount equal to any owner's association or condominium fees
levied or assessed  against the Premises.  Said monies shall be paid at the same
time and in the same manner as the Base Rent.
5. Security Deposit.  Lessee shall deposit with Lessor upon execution hereof the
Security  Deposit  as  security  for  Lessee's   faithful   performance  of  its
obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults
under this  Lease,  Lessor may use,  apply or retain all or any  portion of said
Security  Deposit  for the payment of any amount due Lessor or to  reimburse  or
compensate  Lessor for any liability,  expense,  loss or damage which Lessor may
suffer or incur by reason thereof.  If Lessor uses or applies all or any portion
of the  Security  Deposit,  Lessee shall  within 10 days after  written  request
therefore deposit monies with Lessor sufficient to restore said Security Deposit
to the full amount required by this Lease. If the Base Rent increases during the
term of this Lease,  Lessee  shall,  upon written  request from Lessor,  deposit
additional  moneys with Lessor so that the total amount of the Security  Deposit
shall at all times bear the same  proportion to the  increased  Base Rent as the
initial Security Deposit bore to the initial Base Rent. Should the Agreed Use be
amended  to  accommodate  a  material  change  in the  business  of Lessee or to
accommodate a sublessee or assignee, Lessor shall have the right to increase the
Security Deposit to the extent necessary,  in Lessor's reasonable  judgment,  to
account for any increased wear and tear that the Premises may suffer as a result
thereof. If a change in control of Lessee occurs during this Lease and following
such  change  the  financial  condition  of Lessee  is, in  Lessor's  reasonable
judgment,  significantly  reduced,  Lessee shall deposit such additional  monies
with  Lessor as shall be  sufficient  to cause the  Security  Deposit to be at a
commercially  reasonable  level  based on such  change in  financial  condition.
Lessor  shall not be required to keep the  Security  Deposit  separate  from its
general  accounts.  Within 14 days after the  expiration or  termination of this
Lease,  if Lessor elects to apply the Security  Deposit only to unpaid Rent, and
otherwise  within 30 days  after the  Premises  have been  vacated  pursuant  to
Paragraph 7.4(c) below, Lessor shall return that portion of the Security Deposit
not  used or  applied  by  Lessor.  No part of the  Security  Deposit  shall  be
considered to be held in trust,  to bear  interest or to be  prepayment  for any
monies to be paid by Lessee under this Lease.
6.  Use.
     6.1 Use.  Lessee shall use and occupy the Premises only for the Agreed Use,
or any other legal use which is reasonably  comparable thereto, and for no other
purpose. Lessee shall not use or permit the use of the Premises in a manner that
is unlawful,  creates damage, waste or a nuisance, or that disturbs occupants of
or  causes  damage to  neighboring  premises  or  properties.  Lessor  shall not
unreasonably  withhold  or  delay  its  consent  to any  written  request  for a
modification  of the  Agreed  Use,  so long as the  same  will  not  impair  the
structural  integrity of the  improvements  on the Premises or the mechanical or
electrical  systems therein,  and/or is not significantly more burdensome to the
Premises. If Lessor elects to withhold consent, Lessor shall within 7 days after
such request give written  notification  of same,  which notice shall include an
explanation of Lessor's objections to the change in the Agreed Use.
     6.2 Hazardous Substances.
        (a) Reportable Uses Require Consent.  The term "Hazardous  Substance" as
used in this Lease shall mean any product,  substance,  or waste whose presence,
use, manufacture,  disposal,  transportation, or release, either by itself or in
combination with other materials expected to be on the Premises,  is either: (I)
potentially  injurious to the public health,  safety or welfare, the environment
or the Premises,  (ii) regulated or monitored by any governmental  authority, or
(iii) a basis for potential  liability of Lessor to any  governmental  agency or
third  party  under any  applicable  statute  or common  law  theory.  Hazardous
Substances  shall  include,  but not be  limited  to,  hydrocarbons,  petroleum,
gasoline,  and/or crude oil or any products,  by-products or fractions  thereof.
Lessee shall not engage in any activity in or on the Premises which  constitutes
a  Reportable  Use of Hazardous  Substances  without the express  prior  written
consent  of  Lessor  and  timely  compliance  (at  Lessee's  expense)  with  all
Applicable Requirements. "Reportable Use" shall mean (i) the installation or use
of any above or below ground  storage  tank,  (ii) the  generation,  possession,
storage, use, transportation, or disposal of a Hazardous Substance that requires
a permit  from,  or with  respect  to which a report,  notice,  registration  or
business plan is required to be filed with, any governmental  authority,  and/or
(iii) the  presence at the  Premises of a Hazardous  Substance  with  respect to
which any  Applicable  Requirements  requires  that a notice be given to persons
entering or occupying the Premises or  neighboring  properties.  Notwithstanding
the foregoing,  Lessee may use any ordinary and customary  materials  reasonably
required  to be used in the normal  course of the Agreed  Use,  ordinary  office
supplies (copier toner,  liquid paper, glue, etc.) and common household cleaning
materials,   so  long  as  such  use  is  in  compliance   with  all  Applicable
Requirements,  is not a  Reportable  Use,  and does not expose the  Premises  or
neighboring property to any meaningful risk of contamination or damage or expose
Lessor to any liability therefore. In addition, Lessor may condition its consent
to any  Reportable  Use upon  receiving  such  additional  assurances  as Lessor
reasonably  deems necessary to protect itself,  the public,  the Premises and/or
the  environment  against  damage,   contamination,   injury  and/or  liability,
including,  but not limited to, the installation (and removal on or before Lease
expiration  or  termination)  of  protective  modifications  (such  as  concrete
encasements) and/or increasing the Security Deposit.
        (b) Duty to Inform Lessor.  If Lessee knows, or  has reasonable cause to
believe,  that a Hazardous  Substance  has come to be located  in, on,  under or
about the  Premises,  other than as  previously  consented to by Lessor,  Lessee
shall immediately give written notice of such fact to Lessor, and provide Lessor
with a copy of any report,  notice,  claim or other  documentation  which it has
concerning the presence of such Hazardous Substance.
        (c) Lessee Remediation.  Lessee shall not cause or  permit any Hazardous
Substance  to be  spilled  or  released  in, on,  under,  or about the  Premises
(including through the plumbing or sanitary sewer system) and shall promptly, at

<PAGE>

Lessee's  expense,   comply  with  all  Applicable  Requirements  and  take  all
Investigatory  and/or remedial  action  reasonably  recommended,  whether or not
formally ordered or required,  for the cleanup of any  contamination of, and for
the  maintenance,  security  and/or  monitoring  of the Premises or  neighboring
properties,  that  was  caused  or  materially  contributed  to  by  Lessee,  or
pertaining  to or involving any  Hazardous  Substance  brought onto the Premises
during the term of this Lease, by or for Lessee, or any third party.
        (d) Lessee  Indemnification.  Lessee  shall  identify  defend  and  hold
Lessor, its agents, employees,  lenders and ground lessor, if any, harmless from
and against any and all loss of rents and or  damages,  liabilities,  judgments,
claims, expenses,  penalties, and attorneys' and consultants' fee arising out of
or involving  any  Hazardous  Substance  brought onto the Presises by or for any
Hazardous  Substance  under the Premises from adjacent  properties not caused or
contributed  to by  Lessee).  Lessee's  obligations  shall  include,  but not be
limited to, the effects of any  contamination  or injury to person,  property or
the environment  created or suffered by Lessee,  and the cost of  investigation,
removal,  remediation,  restoration  and/or  abatement,  and shall  survive  the
expiration or termination of this Lease. No termination, cancellation or release
agreement  entered  into by Lessor  and Lessee  shall  release  Lessee  from its
obligations  under this  Lease with  respect  to  Hazardous  Substances,  unless
specifically so agreed by Lessor in writing at the time of such  agreement.
        (e) Lessor Indemnification.  Lessor and its successors and assigns shall
indemnify, defend, reimburse and hold Lessee its employees and lenders, harmless
from  and  against  any and all  environmental  damages,  including  the cost of
remediation,  which  result  from  Hazardous  Substances  which  existed  on the
Premises prior to Lessee's occupancy or which are caused by the gross negligence
or willful misconduct of Lessor, its agents or employees.  Lesson's obligations,
as and when required by the Applicable  Requirements,  shall include, but not be
limited to, the cost of investigation,  removal, remediation, restoration and/or
abatement, and shall survive the expiration or termination of this Lease.
        (f) Investigations  and Remediation.  Lessor shall  retain the responsi-
bility  and pay for any  investigations  or  remediation  measures  required  by
governmental  entities  having  jurisdiction  with  respect to the  existence of
Hazardous  Substances on the Premises prior to Lessee's  occupancy,  unless such
remediation  measure  is  required  as  a  result  of  Lessee's  use  (including
"Alterations",  as defined in paragraph 7.3(a) below) of the Premises,  in which
event Lessee shall be responsible for such payment. Lessee shall cooperate fully
in any such activities at the request of Lessor,  Including  allowing Lessor and
Lessor's agents to have reasonable access to the Premises at reasonable times in
order to carry out Lesson's investigative and remedial responsibilities.
        (g) Lessor Termination  Option. If a Hazardous  Substance Condition (see
Paragraph  9.1 (e))  occurs  during  the term of this  Lease,  unless  Lessee is
legally responsible  therefore(in which case Lessee shall make the investigation
and remediation  thereof required by the Applicable  Requirements and this Lease
shall  continue in full force and effect,  but subject to Lessor's  rights under
Paragraph 6.2(d) and Paragraph 13). Lessor may, at Lessor's  option,  either (i)
investigate and remediate such Hazardous Substance  Condition,  if required,  as
soon as reasonably possible at Lessor's expense, in which event this Lease shall
continue in full force and effect,  or (ii) if the  estimated  cost to remediate
such  condition  exceeds  12  times  the then  monthly  Base  Rent or  $100,000,
whichever  Is  greater,  give  written  notice to  Lessee,  within 30 days after
receipt by Lessor of knowledge of the  occurrence  of such  Hazardous  Substance
Condition,  of Lessor's  desire to  terminate  this Lease as of the date 60 days
following  the  date  of such  notice.  In the  event  Lessor  elects  to give a
termination notice.  Lessee may, within 10 days thereafter,  give written notice
to  Lessor of  Lessee's  commitment  to pay the  amount by which the cost of the
remediation of such Hazardous  Substance Condition exceeds an amount equal to 12
times the then monthly Base Rent or $100,000, whichever is greater. Lessee shall
provide Lessor with said funds or satisfactory  assurance thereof within 30 days
following  such  commitment.  In such event,  this Lease shall  continue in full
force and effect,  and Lessor shall proceed to make such  remediation as soon as
reasonably  possible after the required funds are available.  If Lessee does not
give such notice and provide the required funds or assurance  thereof within the
time provided,  this Lease shall  terminate as of the date specified in Lessor's
notice of termination.
     6.3 Lessee's Compliance with Applicable  Requirements.  Except as otherwise
provided  in  this  Lease,  Lessee  shall,  at  Lessee's  sole  expense,  fully,
diligently  and in a  timely  manner,  materially  comply  with  all  Applicable
Requirements,  the requirements of any applicable fire insurance  underwriter or
rating bureau, and the  recommendations of Lessor's engineers and/or consultants
which relate in any manner to the such  Requirements,  without regard to whether
such  Requirements  are now in effect or become  effective after the Start Date.
Lessee shall, within 10 days after receipt of Lessor's written request,  provide
Lessor with copies of all permits  and other  documents,  and other  information
evidencing  Lessee's  compliance with any Applicable  Requirements  specified by
Lessor,  and shall  immediately  upon  receipt,  notify  Lessor in writing (with
copies of any documents  involved) of any  threatened  or actual claim,  notice,
citation, warning, complaint or report pertaining to or involving the failure of
Lessee or the Premises to comply with any Applicable Requirements.
     6.4  Inspection;  Compliance.  Lessor and Lessor's  "Lender" (as defined in
Paragraph 30) and consultants shall have the right to enter into Premises at any
time,  in the case of an  emergency,  and  otherwise at  reasonable  times after
reasonable  notice,  for the purpose of inspecting the condition of the Premises
and for  verifying  compliance  by Lessee with this Lease.  The cost of any such
inspections  shall  be  paid  by  Lessor,   unless  a  violation  of  Applicable
Requirements, or a Hazardous Substance Condition (see paragraph 9.1) is found to
exist  or  be  imminent,  or  the  inspection  is  requested  or  ordered  by  a
governmental authority. In such case, Lessee shall upon request reimburse Lessor
for the  cost of such  inspection,  so  long as such  inspection  is  reasonably
related to the  violation or  contamination.  In addition,  Lessee shall provide
copies of all relevant  material  safety data sheets  (MSDS) to Lessor within 10
days of the receipt of a written request therefore.
7.  Maintenance; Repairs; Utility Installations; Trade Fixtures and Alterations.
     7.1 Lessee's Obligations.
        (a) In General. Subject to the  provisions of Paragraph 2.2 (Condition),
2.3 (Compliance),  6.3 (Lessee's Compliance with Applicable  Requirements),  7.2
(Lessor's Obligations), 9 (Damage or Destruction), and 14 (Condemnation), Lessee
shall,  at Lessee's  sole  expense,  keep the  Premises,  Utility  Installations
(intended for Lessee's exclusive use, no matter where located),  and Alterations
in good order,  condition and repair (whether or not the portion of the Premises
requiring repairs, or the means of repairing the same, are reasonably or readily
accessible to Lessee,  and whether or not the need for such repairs  occurs as a
result of Lessee's  use,  any prior use, the elements or the age of such portion
of the  Premises),  including,  but not limited to, all equipment or facilities,
such as plumbing,  HVAC equipment,  electrical,  lighting  facilities,  boilers,
pressure  vessels,  fire  protection  system,   fixtures,  walls  (interior  and
exterior),   ceilings,   floors,   windows,   doors,  plate  glass,   skylights,
landscaping,  driveways, parking lots, fences, retaining walls, signs, sidewalks
and  parkways  located  in,  on, or  adjacent  to the  Premises.  Lessee is also
responsible  for  keeping the roof and roof  drainage  clean and free of debris.
Lessor shall keep the surface and structural elements of the roof,  foundations,
and bearing  walls in good repair (see  paragraph 7 2).  Lessee,  in keeping the
Premises in good order,  condition and repair,  shall  exercise and perform good
maintenance practices, specifically including the procurement and maintenance of
the service contracts required by Paragraph 7.1 (b) below.  Lessee's obligations
shall include restorations,  replacements or renewals when necessary to keep the
Premises and all improvements thereon or a part thereof in good order, condition
and state of  repair.  Lessee  shall,  during the term of this  Lease,  keep the
exterior appearance of the Building in a first-class condition (including,  e.g.
graffiti  removal)  consistent  with the exterior  appearance  of other  similar
facilities  of  comparable  age  and  size  in  the  vicinity,  including,  when
necessary, the exterior repainting of the Building.
        (b) Service  Contracts. Lessee shall,  at Lessee's sole expense, procure
and maintain  contracts,  with copies to Lessor, in customary form and substance
for, and with contractors specializing and experienced in the maintenance of the
following  equipment  and  improvements,  if any, if and when  installed  on the
Premises:  (i) HVAC equipment,  (ii) boiler,  and pressure  vessels,  (iii) fire
extinguishing  systems,  including  fire  alarm  and/or  smoke  detection,  (Iv)
landscaping and irrigation systems,  (v) clarifiers,  (vi) basic utility feed to
the perimeter of the  Building,  and (viii) any other  equipment,  if reasonably
required by Lessor.  However,  Lessor reserves the right, upon notice to Lessee,
to procure and maintain any or all of such service  contracts,  and if Lessor so
elects,  Lessee shall reimburse Lessor,  upon demand, for the cost thereof.
        (c) Failure to Perform.  If Lessee fails to perform Lessee's obligations
under this  Paragraph  7.1,  Lessor may enter upon the  Premises  after 10 days'

<PAGE>

prior written  notice to Lessee  (except in the case of an  emergency,  in which
case no notice shall be required),  perform such obligations on Lessee's behalf,
and put the  Premises in good order,  condition  and  repair,  and Lessee  shall
promptly pay to Lessor a sum equal to 115% of the cost thereof.

        (d) Replacement  Subject to  Lessee's  indemnification  of Lessor as set
forth in  Paragraph  8.7  below,  and  without  relieving  Lessee  of  liability
resulting  from  Lessee's  failure to  exercise  and  perform  good  maintenance
practices,  if an item  described  in  Paragraph  8.7,  and fencing in or on the
Premises.  The term "Trade Fixture" shall mean Lessee's  machinery and equipment
that can be removed  without doing  material  damage to the  Premises.  The term
-Alterations."   shall  mean  any   modification  of  the  improvement   Utility
Installations or Trade Fixtures,  whether by addition or deletion. "Lessee Owned
Alterations,  and/or Utility Installations defined as Alterations and/or Utility
Installations  made by  Lessee  that are not yet  owned by  Lessor  pursuant  to
Paragraph 7.4(a). (b) Consent.  Lessee shall not make any Alterations or Utility
Installa- tions to the Premises without  Lessor's prior written consent.  Lessee
may, however, make non-structural  Utility Installations  to the interior of the

<PAGE>

Premises (excluding the roof) without such consent but upon notice to Lessor, as
long as they  are not  visible  from the  outside,  do not  involve  puncturing,
relocating  or  removing  the roof or any  existing  walls,  will not affect the
electrical,  plumbing, HVAC, and/or life safety systems, and the cumulative cost
thereof  during this Lease as extended  does not exceed a sum equal to 3 month's
Base Rent in the  aggregate  or a sum equal to one  months  Base Rent in any one
year.  Notwithstanding  the foregoing,  Lessee shall not make or permit any roof
penetrations  and/or  install  anything on the roof  without  the prior  written
approval of Lessor.  Lessor may, as a  precondition  to granting such  approval,
require  Lessee to utilize a contractor  chosen and/or  approved by Lessor.  Any
Alterations or Utility  Installations that Lessee shall desire to make and which
require the consent of the Lessor  shall be  presented to Lessor in written form
with detailed  plans.  Consent shall be deemed  conditioned  upon Lessee's:  (i)
acquiring all  applicable  governmental  permits,  (ii)  furnishing  Lessor with
copies  of  both  the  permits  and  the  plans  and  specifications   prior  to
commencement  of the work,  and (iii)  compliance  with all  conditions  of said
permits and other  Applicable  Requirements in a prompt and expeditious  manner.
Any  Alterations  or Utility  Installations  shall be performed in a workmanlike
manner with good and sufficient materials. Lessee shall promptly upon completion
furnish Lessor with as-built plans and  specifications.  For work which costs an
amount in excess of one month's Base Rent, Lessor may condition its consent upon
Lessee  providing a lien and  completion  bond in an amount equal to 150% of the
estimated cost of such Alteration or Utility  Installation  and/or upon Lessee's
posting an additional Security Deposit with Lessor.
        (c) Liens.;  Bonds.  Lessee shall pay,   when  due, all claims for labor
or materials  furnished or alleged to have been furnished to or for Lessee at or
for use on the Premises, which claims are or may be secured by any mechanic's or
materialmen's  lien against the Premises or any interest  therein.  Lessee shall
give Lessor not less than 10 days notice prior to the  commencement  of any work
in, on or about the Premises, and Lessor shall have the right to post notices of
non-responsibility. If Lessee shall contest the validity of any such lien, claim
or demand,  then Lessee shall,  at its sole expense  defend and protect  itself,
Lessor and the  Premises  against  the same and shall pay and  satisfy  any such
adverse judgment that may be rendered thereon before the enforcement thereof. If
Lessor shall  require,  Lessee shall furnish a surety bond in an amount equal to
150% of the amount of such contested lien, claim or demand,  indemnifying Lessor
against  liability  for the same. If Lessor  elects to  participate  in any such
action,  Lessee shall pay Lessor's  attorneys'  fees and costs.
     7.4 Ownership; Removal; Surrender; and Restoration.
             (a)  Ownership.  Subject  to  Lessor's right to require  removal or
elect   ownership  as  hereinafter   provided,   all   Alterations  and  Utility
Installations  made by Lessee shall be the property of Lessee,  but considered a
part of the Premises.  Lessor may, at any time, elect in writing to be the owner
of all or any  specified  part  of the  Lessee  Owned  Alterations  and  Utility
installations.  Unless  otherwise  instructed per paragraph  7.4(b) hereof,  all
Lessee Owned Alterations and Utility  Installations  shall, at the expiration or
termination  of this Lease,  become the property of Lessor and be surrendered by
Lessee with the Premises.
        (b)  Removal.  By  delivery to Lessee of written notice from  Lessor not
earlier  than 90 and not later than 30 days prior to the end of the term of this
Lease,  Lessor may require that any or all Lessee Owned  Alterations  or Utility
Installations be removed by the expiration or termination of this Lease.  Lessor
may  require  the  removal  at any time of all or any part of any  Lessee  Owned
Alterations  or Utility  Installations  made without the required  consent.
        (c) Surrender;  Restoration.
Lessee  shall  surrender  the  Premises  by the  Expiration  Date or any earlier
termination date, with all of the improvements, parts and surfaces thereof broom
clean and free of debris,  and in good operating  order,  condition and state of
repair,  ordinary  wear and tear  excepted.  "Ordinary  wear and tear" shall not
include  any damage or  deterioration  that would  have been  prevented  by good
maintenance  practice.  Notwithstanding  the foregoing,  if this Lease is for 12
months or less,  then Lessee shall  surrender the Premises in the same condition
as delivered to Lessee on the Start Date with NO allowance for ordinary wear and
tear. Lessee shall repair any damage occasioned by the installation, maintenance
or  removal  of  Trade  Fixtures,   Lessee  owned  Alterations   and/or  Utility
Installations,  furnishings, and equipment as well as the removal of any storage
tank  installed  by or for  Lessee.  Lessee  shall  completely  remove  from the
Premises any and all  Hazardous  Substances  brought onto the Premises by or for
Lessee, or any third party (except Hazardous Substances which were deposited via
underground migration from areas outside of the Premises, or if applicable,  the
Project) even if such removal  would  require  Lessee to perform or pay for work
that exceeds statutory requirements. Trade Fixtures shall remain the property of
Lessee  and shall be  removed by Lessee.  Any  personal  property  of Lessee not
removed on or before the Expiration Date or any earlier  termination  date shall
be deemed to have been abandoned by Lessee and may be disposed of or retained by
Lessor as Lessor may desire. The failure by Lessee to timely vacate the Premises
pursuant to this Paragraph  7.4(c) without the express written consent of Lessor
shall  constitute a holdover  under the  provisions  of  Paragraph 26 below.
8. Insurance;  Indemnity.
     8.1 Payment of Premium Increases.
        (a) Lessee shall pay to Lessor any  insurance cost increase  ("Insurance
Cost Increase") occurring during the term of this Lease. Insurance Cost Increase
is defined as any increase in the actual cost of the  insurance  required  under
Paragraph 8.2(b), 8.3(a) and 8.3(b) ("Required  Insurance"),  over and above the
Base Premium as  hereinafter  defined  calculated on an annual basis.  Insurance
Cost Increase  shall include but not be limited to increases  resulting from the
nature of Lessee's occupancy, any act or omission of Lessee, requirements of the
holder of mortgage or deed of trust covering the Premises,  increased  valuation
of the Premises  and/or a premium rate  increase.  The parties are encouraged to
fill in the Base  Premium in  paragraph  1.8 with a  reasonable  premium for the
Required Insurance based on the Agreed Use of the Premises.  If the parties fail
to insert a dollar  amount in Paragraph  1.8, then the Base Premium shall be the
lowest annual premium reasonably obtainable for the Required Insurance as of the
commencement  of the  Original  Term for the Agreed Use of the  Premises.  In no
event,  however,  shall Lessee be responsible for any portion of the Increase in
the premium cost  attributable  to liability  insurance  carried by Lessor under
Paragraph 8.2(b) in excess of $2,000,000 per occurrence.
        (b) Lessee shall pay any such  Insurance Cost  Increase to Lessor within
30 days after  receipt  by Lessee of a copy of the  premium  statement  or other
reasonable  evidence  of the amount due. If the  insurance  policies  maintained
hereunder cover other property  besides the Premises,  Lessor shall also deliver
to Lessee a statement of the amount of such Insurance Cost Increase attributable
only to the  Premises  showing  in  reasonable  detail  the manner in which such
amount  was  computed.  Premiums  for  policy  periods  commencing  prior to, or
extending beyond the term of this Lease,  shall be prorated to correspond to the
term of this Lease.
     8.2 Liability Insurance.
        (a) Carried  by  Lessee.   Lessee  shall  obtain  and  keep  in  force a
Commercial General Liability policy of insurance protecting Lessee and Lessor as
an additional  insured  against  claims for bodily injury,  personal  injury and
property  damage based upon or arising out of the ownership,  use,  occupancy or
maintenance of the Premises and all areas  appurtenant  thereto.  Such Insurance
shall be on an occurrence basis providing single limit coverage In an amount not
less than $1,000,000 per occurrence with an annual aggregate of

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   Initials                        PAGE 5 of 15

not less than $2,000,000, an "Additional Insured-Managers or Lessors of Premises
Endorsement" and contain the "Amendment of the Pollution Exclusion  Endorsement"
for damage caused by heat,  smoke or fumes from a hostile fire. The policy shall
not  contain  any  intra-insured   exclusions  as  between  insured  persons  or
organizations, but shall include coverage for liability assumed under this Lease
as an "insured contract" for the performance of Lessee's  indemnity  obligations
under this Lease.  The limits of said insurance  shall not,  however,  limit the
liability  of  Lessee  nor  relieve  Lessee  of any  obligation  hereunder.  All
insurance  carried by Lessee shall be primary to and not  contributory  with any
similar insurance carried by Lessor,  whose insurance shall be considered excess
insurance only.
        (b) Carried  by Lessor.  Lessor shall  maintain  liability  insurance as
described in Paragraph 8.2(a), in addition to, and not in lieu of, the insurance
required to be maintained by Lessee.  Lessee shall not be named as an additional
insured therein.

     8.3 Property Insurance - Building, Improvements and Rental Value.

<PAGE>

        (a) Building and Improvement*. The Insuring Party  shall obtain and keep
in force a policy  or  policies  in the name of  Lessor,  with loss  payable  to
Lessor,  any  ground-lessor,  and to any Lender  insuring  loss or damage to the
Premises.  The amount of such insurance  shall be equal to the full  replacement
cost of the  Premises,  as the same shall exist from time to time, or the amount
required by any Lender,  but in no event more than the  commercially  reasonable
and available insurable value thereof. If Lessor is the Insuring Party, however.
Lessee Owned Alterations and Utility Installations, Trade Fixtures, and Lessee's
personal  property shall be insured by Lessee under Paragraph 8.4 rather than by
Lessor. If the coverage is available and commercially  appropriate,  such policy
or policies  shall insure  against all risks of direct  physical  loss or damage
(except the perils of flood  and/or  earthquake  unless  required by a Lender or
included in the Base  Premium),  including  coverage for debris  removal and the
enforcement of any Applicable Requirements requiring the upgrading,  demolition,
reconstruction  or replacement of any portion of the Premises as the result of a
covered  loss.  Said policy or policies  shall also contain an agreed  valuation
provision  in  lieu  of any  coinsurance  clause,  waiver  of  subrogation,  and
inflation guard protection  causing an increase in the annual property insurance
coverage  amount by a factor of not less than the adjusted  U.S.  Department  of
Labor Consumer Price Index for All Urban Consumers for the city nearest to where
the Premises are located.  If such insurance,  coverage has a deductible clause,
the deductible  amount shall not exceed $1,000 per occurrence,  and Lessee shall
be liable for such deductible amount in the event of an Insured Loss.
        (b) Rental Value.  The Insuring  Party shall obtain  and keep in force a
policy or  policies  in the name of Lessor  with loss  payable to Lessor and any
Lender,  insuring the loss of the full Rent for one year with an extended period
of indemnity for an additional 180 days Rental Value insurance"). Said insurance
shall contain an agreed valuation  provision in lieu of any coinsurance  clause,
and the amount of coverage  shall be adjusted  annually to reflect the projected
Rent otherwise payable by Lessee, for the next 12 month period.  Lessee shall be
liable for any deductible amount in the event of such loss.
        (c) Adjacent  Premises.  If the Premises  are part of a larger building,
or of a group of buildings  owned by Lessor which are adjacent to the  Premises,
the Lessee shall pay for any increase in the premiums for the property insurance
of such  building or  buildings if said  increase is caused by  Lessee's'  acts,
omissions,  use or occupancy of the Premises.
     8.4 Lessee's Property; Business Interruption Insurance.
        (a) Property Damage. Lessee shall obtain and maintain insurance coverage
on  all  of  Lessee's  personal  property,  Trade  Fixtures,  and  Lessee  Owned
Alterations and Utility Installations.  Such insurance shall be full replacement
cost  coverage with a deductible  of not to exceed  $1,000 per  occurrence.  The
proceeds from any such insurance  shall be used by Lessee for the replacement of
personal  property,  Trade  Fixtures  and Lessee Owned  Alterations  and Utility
Installations.  Lessee  shall  provide  Lessor with written  evidence  that such
insurance is in force.
        (b) Business  Interruption.  Lessee shall  obtain and  maintain  loss of
income and extra  expense  insurance  in amounts  as will  reimburse  Lessee for
direct or indirect loss of earnings  attributable to all perils commonly insured
against  by  prudent  lessees  in the  business  of  Lessee or  attributable  to
prevention of access to the Premises as a result of such perils.
        (c) No Representation of Adequate Coverage.  Lessor makes no representa-
tion that the limits or forms of  coverage  of  insurance  specified  herein are
adequate to cover Lessee's  property,  business  operations or obligations under
this Lease.
     8.5 Insurance  Policies.  Insurance  required  herein shall be by companies
duly  licensed or admitted to transact  business in the state where the Premises
are located,  and  maintaining  during the policy term a "General  Policyholders
Rating"  of at least B+, V, as set forth in the most  current  issue of  "Best's
Insurance  Guide",  or such other rating as may be required by a Lender.  Lessee
shall  not do or permit  to be done  anything  which  invalidates  the  required
insurance  policies.  Lessee shall,  prior to the Start Date,  deliver to Lessor
certified  copies of policies of such insurance or  certificates  evidencing the
existence  and  amounts  of the  required  insurance.  No such  policy  shall be
cancelable or subject to modification  except after 30 days prior written notice
to  Lessor.  Lessee  shall,  at least 30 days  prior to the  expiration  of such
policies,  furnish  Lessor with  evidence of  renewals  or  "insurance  binders"
evidencing  renewal  thereof,  or Lessor may order such insurance and charge the
cost  thereof to Lessee,  which amount shall be payable by Lessee to Lessor upon
demand. Such policies shall be for a term of at least one year, or the length of
the remaining term of this Lease,  whichever is less. If either Party shall fail
to procure and  maintain the  insurance  required to be carried by it, the other
Party may, but shall not be required to, procure and maintain the same.
     8.6 Waiver of Subrogation.  Without affecting any other rights or remedies,
Lessee and Lessor  each hereby  release  and relieve the other,  and waive their
entire right to recover damages against the other,  for loss of or damage to its
property arising out of or incident to the perils required to be insured against
herein.  The effect of such releases and waivers is not limited by the amount of
insurance,  carried or required,  or by any deductibles  applicable  hereto. The
Parties agree to have their respective  property damage insurance carriers waive
any right to subrogation  that such companies may have against Lessor or Lessee,
as the case may be, so long as the insurance is not invalidated thereby.
     8.7 Indemnity.  Except for Lessor's gross negligence or willful misconduct,
Lessee shall indemnify,  protect, defend and hold harmless the Premises,  Lessor
and its agents, Lessor's master or ground lessor, partners and Lenders, from and
against any and all claims,  loss of rents  and/or  damages,  liens,  judgments,
penalties, attorneys' and consultants' fees, expenses and/or liabilities arising
out of,  involving,  or in  connection  with,  the use and/or  occupancy  of the
Premises by Lessee.  If any action or  proceeding is brought  against  Lessor by
reason of any of the foregoing matters, Lessee shall upon notice defend the same
at  Lessee's  expense by counsel  reasonably  satisfactory  to Lessor and Lessor
shall cooperate with Lessee in such defense. Lessor need not have first paid any
such claim in order to be defended or indemnified.
     8.8  Exemption  of Lessor from  Liability.  Lessor  shall not be liable for
injury or damage to the person or goods, wares, merchandise or other property of
Lessee,  Lessee's  employees,  contractors,  invitees,  customers,  or any other
person in or about the  Premises,  whether such damage or injury is caused by or
results from fire, steam, electricity, gas, water or rain, or from the breakage,
leakage,  obstruction  or  other  defects  of  pipes,  fire  sprinklers,  wires,
appliances,  plumbing,  HVAC or  lighting  fixtures,  or from any  other  cause,
whether the said  injury or damage  results  from  conditions  arising  upon the
Premises or upon other  portions of the  building  of which the  Premises  are a
part,  or from  other  sources  or  places.  Lessor  shall not be liable for any
damages  arising  from any act or neglect of any other tenant of Lessor nor from
the  failure  of Lessor to  enforce  the  provisions  of any other  lease in the
Project.  Notwithstanding  Lessor's  negligence or breach of this Lease,  Lessor
shall under no  circumstances  be liable for injury to Lessee's  business or for
any loss of income or profit therefroe.
     8.9 Failure to Provide Insurance.  Lessee  acknowledges that any failure on
its part to obtain or maintain the insurance  required herein will expose Lessor
to risks and  potentially  cause Lessor to incur costs not  contemplated by this
Lease,   the  extent  of  which  will  be  extremely   difficult  to  ascertain.
Accordingly,  for any month or portion thereof that Lessee does not maintain the
required  insurance  and/or does not provide Lessor with the required binders or
certificates  evidencing the existence of the required insurance,  the Base Rent
shall
9. Damage or Destruction.
     9.1 Definitions.
        (a)  "Premises Partial Damage" shall mean damage or destruction  to  the
improvements  on the Premises,  other than Lessee Owned  Alterations and Utility
Installations,  which can  reasonably  be  repaired in 6 months or less from the
date of the damage or Suction  Lessor shall notify Lessee in Wing within 30 days
from the date of the  damage or  destruction  as to whether or not the damage is
Partial  or  Total.
        (b)  "Premises  Total Destruction" shall  mean damage or destruction  to
the Premises,  other than Lessee Owned Alterations and Utility Installations and
Trade Fixtures, which cannot reasonably be repaired in 6 months or less from the
date of the damage or destruction.  Lessor shall notify Lessee In writing within
30 days from the date of the  damage or  destruction  as to  whether  or not the
damage is Partial or Total.
        (c) "Insured Loss" shall  mean damage or destruction to improvements  on
the Premises,  other than Lessee Owned Alterations and Utility Installations and
Trade  Fixtures,  which was  caused by an event  required  to be  covered by the
insurance described in Paragraph 8.3(a),  irrespective of any deductible amounts
or coverage limits involved.

<PAGE>

        (d) "Replacement  Cost"  shall mean  the  cost to repair or rebuild  the
improvements  owned by Lessor at the time of the  occurrence to their  condition
existing  immediately prior thereto,  including  demolition,  debris removal and
upgrading  required by the  operation of  Applicable  Requirements,  and without
deduction for depreciation.
        (e) "Hazardous  Substance Condition"  shall  mean the occurrence or dis-
covery of a  condition  involving  the  presence  of, or a  contamination  by, a
Hazardous  Substance  as  defined  in  Paragraph  6.2(a),  in,  on, or under the
Premises which requires repair, remediation, or restoration.
     9.2 Partial Damage - Insured Loss. If a Premises  Partial Damage that is an
Insured Loss occurs, then Lessor shall, at Lessor's expense,  repair such damage
(but not  Lessee's  Trade  Fixtures  or Lessee  Owned  Alterations  and  Utility
Installations)  as soon as reasonably  possible and this Lease shall continue in
full force and  effect;  provided,  however,  that  Lessee  shall,  at  Lessor's
election,  make the repair of any damage or destruction the total cost to repair
of  which  is  $10,000  or less,  and,  in such  event,  Lessor  shall  make any
applicable insurance proceeds available to Lessee on a reasonable basis for that
purpose.  Notwithstanding  the foregoing,  if the required  insurance was not in
force or the insurance  proceeds are not  sufficient to effect such repair,  the
Insuring Party shall promptly  contribute the shortage in proceeds (except as to
the  deductible  which  is  Lessee's  responsibility)  as and when  required  to
complete said repairs. In the event,  however, such shortage was due to the fact
that, by reason of the unique nature of the improvements,  full replacement cost
insurance coverage was not commercially  reasonable and available,  Lessor shall
have no  obligation  to pay for the shortage in  insurance  proceeds or to fully
restore the unique aspects of the Premises  unless Lessee  provides  Lessor with
the funds to cover same, or adequate assurance thereof, within 10 days following
receipt of written  notice of such  shortage  and request  therefore.  If Lessor
receives said funds or adequate assurance thereof within said 10 day period, the
party  responsible  for  making  the  repairs  shall  complete  them  as soon as
reasonably  possible  and this Lease shall  remain in full force and effect:  If
such funds or  assurance  are not  received,  Lessor may  nevertheless  elect by
written notice to Lessee within 10 days thereafter to: (i) make such restoration
and repair as is  commercially  reasonable  with Lessor  paying any  shortage in
proceeds,  in which case this Lease shall  remain in full force and  effect,  or
(ii) have this Lease terminate 30 days thereafter.  Lessee shall not be entitled
to reimbursement of any funds contributed by Lessee to repair any such damage or
destruction. Premises Partial Damage due to flood or earthquake shall be subject
to Paragraph 9.3, notwithstanding that there may be some insurance coverage, but
the net proceeds of any such  insurance  shall be made available for the repairs
if made by either Party.
     9.3 Partial Damage - Uninsured  Loss. If a Premises  Partial Damage that is
not an Insured  Loss  occurs,  unless  caused by a  negligent  or willful act of
Lessee (in which  event  Lessee  shall make the  repairs at  Lessee's  expense),
Lessor may  either:  (i) repair such  damage as soon as  reasonably  possible at
Lessor's  expense,  in which event this Lease  shall  continue in full force and
effect,  or (ii)  terminate this Lease by giving written notice to Lessee within
30 days after  receipt by Lessor of knowledge of the  occurrence of such damage.
Such  termination  shall be effective 60 days following the date of such notice.
In the event Lessor elects to terminate this Lease,  Lessee shall have the right
within 10 days after receipt of the termination notice to give written notice to
Lessor of  Lessee's  commitment  to pay for the  repair of such  damage  without
reimbursement  from  Lessor.  Lessee  shall  provide  Lessor  with said funds or
satisfactory  assurance thereof within 30 days after making such commitment.  In
such event this Lease shall continue in full force and effect,  and Lessor shall
proceed to make such repairs as soon as reasonably  possible  after the required
funds are available. If Lessee does not make the required commitment, this Lease
shall terminate as of the date specified in the termination notice.
     9.4 Total  Destruction.  Notwithstanding  any other provision  hereof, if a
Premises Total Destruction  occurs, this Lease shall terminate 60 days following
such  Destruction.  If the  damage  or  destruction  was  caused  by  the  gross
negligence  or  willful  misconduct  of Lessee,  Lessor  shall have the right to
recover Lessor's damages from Lessee, except as provided in Paragraph 8.6.
     9.5  Damage  Near End of Term.  If at any time  during the last 6 months of
this Lease there is damage for which the cost to repair exceeds one month's Base
Rent,  whether or not an Insured Loss, Lessor may terminate this Lease effective
60 days  following  the date of  occurrence  of such  damage by giving a written
termination notice to Lessee within 30 days after the date of occurrence of such
damage. Notwithstanding the foregoing, if Lessee at that time has an exercisable
option to extend  this  Lease or to  purchase  the  Premises,  then  Lessee  may
preserve this Lease by, (a) exercising such option and (b) providing Lessor with
any shortage in insurance  proceeds (or adequate  assurance  thereof)  needed to
make the repairs on or before the earlier of (i) the date which is 10 days after
Lessee's receipt of Lessor's written notice  purporting to terminate this Lease,
or (ii) the day prior to the date upon which such option expires. If Lessee duly
exercises  such option  during such  period and  provides  Lessor with funds (or
adequate assurance thereof) to cover any shortage in insurance proceeds,  Lessor
shall, at Lessor's commercially  reasonable expense,  repair such damage as soon
as reasonably  possible and this Lease shall  continue in full force and effect.
If Lessee  falls to exercise  such option and  provide  such funds or  assurance
during such period, then this Lease shall terminate on the date specified in the
termination notice and Lessee's option shall be extinguished.
     9.6 Abatement of Rent; Lessee's Remedies.
        (a) Abatement. In the event of Premises Partial Damageor Premises  Total
Destruction  or  a  Hazardous  Substance  Condition  for  which  Lessee  is  not
responsible under this Lease, the Rent payable by Lessee for the period required
for the repair,  remediation  or  restoration  of such damage shall be abated in
proportion to the degree to which Lessee's use of the Premises is impaired,  but
not to exceed the proceeds  received from the Rental Value insurance.  All other
obligations of Lessee  hereunder shall be performed by Lessee,  and Lessor shall
have no  liability  for any such  damage,  destruction,  remediation,  repair or
restoration except as provided herein.
        (b) Remedies. If Lessor shall be obligated to repair or restore the
Premises and does not commence, in a substantial and meaningful way, such repair
or restoration within 90 days after such obligation shall accrue, Lessee may, at
any time prior to the  commencement of such repair or restoration,  give written
notice to Lessor and to any  Lenders  of which  Lessee  has  actual  notice,  of
Lessee's  election  to  terminate  this  Lease on a date  not less  than 60 days
following the giving of such notice. If Lessee gives such notice and such repair
or  restoration  is not commenced  within 30 days  thereafter,  this Lease shall
terminate as of the date specified in said notice.  If the repair or restoration
Is commenced  within such 30 days,  this Lease shall  continue in full force and
effect.  "Commence"  shall mean either the  unconditional  authorization  of the
Decoration of the required (a) shall mean either the unconditional authorization
of the Decoration of the required  plans, or the beginning of the actual work on
the Premises, whichever first occurs.
     9.7 Termination;  Advance Payments. Upon termination of this Lease pursuant
to  Paragraph  6.2(g) or  Paragraph  9, an  equitable  adjustment  shall be made
concerning  advance Base Rent and any other  advance  payments made by Lessee to
Lessor. Lessor shall, in addition, return to lessee so much of lessee's Security
Deposit as has not been, or is not then required to be, used by Lessor.
     9.8 Waive Statutes. Lessor  and  Lessee  agree that the terms of this Lease
shall govern  theeffect  of any danage to or  destruction  of the Premises  with
respcet to the  termination of this Lease and hereby waive the provisions of any
present of future statute to the extent inconsistent herewith.
10. Real Property Taxes.
    10.1  Definition.  As used  herein,  the term `Real  Property  Taxes"  shall
include any form of  assessment;  real  estate,  general,  special,  ordinary or
extraordinary, or rental levy or tax (other than inheritance, personal income or
estate  taxes);  improvement  bond;  and/or  ;license fee imposed upon or levied
against  any  legal or  equitable  interest  of Lessor  in the  Premises  of the
Project,  Lessor's right to other income therefrom,  and/or Lessor's business of
leasing,  by any authority  having the direct or indirect power to tax and where
the funds are  generated  with  reference to the Building  address and where the
proceeds  so  generated  are to be  applied by the city,  county or other  local
taxing authority of a jurisdiction  within which the Premises are located.  Real
Property Taxes shall also include any tax, fee, levy,  assessment or charge,  or
any increase therein;  (i) imposed by reason of events occurring during the term
of this release,  including but not limited to, a change in the ownership of the
Premises,  and (ii) levied or assessed on  machinery  or  equipment  provided by
Lessor to Lessee pursuant to this Lease.
     10.2
        (a) Payment of Taxes. Lessor shall pay  the Real  Property Taxes applic-
able to the  Premises  provided,  however,  that Lessee  shall pay to Lessor the
amount, if any, by which Real Property Taxes applicable to the Premises increase
over the  fiscal  tax year  during  which the  Commencement  Date  occurs  ("Tax
Increase").  Payment of any such Tax Increase  shall be made by Lessee to Lessor
within 30 days after  receipt of Lessor's  written  statement  setting forth the
amount due and the computation thereof. If any such taxes shall cover any period
of time prior to or after the expiration or termination of this Lease,  Lessee's
share of such taxes shall be prorated to cover only that portion of the tax bill
applicable  to the  period  that this Lease is in  effect.  In the event  Lessee
incurs a late charge on any Rent  payment,  Lessor may estimate the current Real
Property  Taxes,  and require that the Tax Increase be paid in advance to Lessor
by Lessee  monthly in  advance  with the  payment of the Base Rent Such  monthly
payment shall be an amount equal to the amount of the estimated  installment  of
the Tax Increase  divided by the number of months  remaining before the month in
which  said  installment  becomes  delinquent.  When the  actual  amount  of the
applicable  Tax  Increase  is known,  the amount of such equal  monthly  advance
payments  shall be adjusted  as required to provide the funds  needed to pay the
applicable Tax Increase.  If the amount  collected by Lessor is  insufficient to
pay the Tax  Increase  when due,  Lessee  shall pay Lessor,  upon  demand,  such
additional sums as are necessary to pay such  obligations.  Advance payments may
be intermingled with other moneys of Lessor and shall not bear interest.  In the
event of a Breach by Lessee in the  performance  of its  obligations  under this
Lease,  then any such advance payments may be treated by Lessor as an additional
Security Deposit.
        (b) Additional Improvements. Notwithstanding anything to the contrary in
this  Paragraph  10.2,  Lessee  shall pay to Lessor  upon demand  therefore  the
entirety  of  any  increase  in  Real  Property  Taxes  assessed  by  reason  of
Alterations  or Utility  Installations  placed upon the Premises by Lessee or at
Lessee's request.
     10.3 Joint Assessment If the Premises are not separately assessed, Lessee's

<PAGE>

liability  shall be an equitable  proportion  of the Tax Increase for all of the
land and improvements  included within the tax parcel assessed,  such proportion
to be conclusively  determined by Lessor from the respective valuations assigned
in the  assessor's  work sheets or such other  information  as may be reasonably
available.
     10.4 Personal Property Taxes.  Lessee shall pay, prior to delinquency,  all
taxes  assessed  against  and levied  upon  Lessee  Owned  Alterations,  Utility
Installations,  Trade Fixtures, furnishings, equipment and all personal property
of Lessee.  When possible,  Lessee shall cause its Lessee Owned  Alterations and
Utility  Installations,  Trade  Fixtures,  furnishings,  equipment and all other
personal property to be assessed and billed separately from the real property of
Lessor.  If any of Lessee's said  property  shall be assessed with Lessor's real
property,  Lessee shall pay Lessor the taxes  attributable to Lessee's  property
within 10 days after  receipt  of a written  statement  setting  forth the taxes
applicable to Lessee's property.
     11.  Utilities and  Services.  Lessee shall pay for all water,  gas,  heat,
light,  power,  telephone,  trash  disposal  and other  utilities  and  services
supplied to the Premises,  together with any taxes thereon. If any such services
are not separately  metered or billed to Lessee,-  Lessee shall pay a reasonable
proportion,  to be  determined  by Lessor,  of all  charges  jointly  metered or
billed.  There shall be no  abatement  of rent and Lessor shall not be liable in
any  respect   whatsoever  for  the   inadequacy,   stoppage,   interruption  or
discontinuance  of any utility or service due to riot,  strike,  labor  dispute,
breakdown, accident, repair or other cause beyond Lessor's reasonable control or
in cooperation with governmental request or directions.
     12. Assignment and Subletting.
     12.1 Lessor's Consent Required.
        (a) Lessee shall not voluntarily or by operation  of law  assign, trans-
fer, mortgage or encumber  (collectively,  "assign or assignment") or sublet all
or any  part of  Lessee's  interest  in this  Lease or in the  Premises  without
Lessor's prior written consent.
        (b) Unless Lessee is a corporation and its stock is publicly traded on a
national stock exchange,  a change in the control of Lessee shall  constitute an
assignment  requiring  consent.  The transfer,  on a cumulative basis, of 25% or
more of the voting  control of Lessee  shall  constitute a change in control for
this purpose.
        (c) The involvement of  Lessee  or its  assets  in  any transaction,  or
series  of  transactions  (by  way  of  merger,  sale,  acquisition,  financing,
transfer, leveraged buy-out or otherwise), whether or not a formal assignment or
hypothecation  of this Lease or Lessee's  assets  occurs,  which results or will
result in a reduction  of the Net Worth of Lessee by an amount  greater than 25%
of such Net Worth as it was  represented  at the time of the  execution  of this
Lease  or at the  time  of the  most  recent  assignment  to  which  Lessor  has
consented, or as it exists immediately prior to said transaction or transactions
constituting such reduction, whichever was or is greater, shall be considered an
assignment of this Lease to which Lessor may withhold its consent. "Net Worth of
Lessee"  shall  mean  the  net  worth  of  Lessee   (excluding  any  guarantors)
established under generally accepted accounting principles.
        (d) An assignment or subletting without  consent shall, at  Lessor's op-
tion, be a Default curable after notice per Paragraph  13.1(c),  or a nondurable
Breach without the necessity of any notice and grace period. If Lessor elects to
treat such unapproved  assignment or subletting as a non-curable Breach,  Lessor
may either:  (i)  terminate  this Lease,  or (ii) upon 30 days  written  notice,
increase the monthly Base Rent to 110% of the Base Rent then in effect. Further,
in the event of such Breach and rental adjustment, (i) the purchase price of any
option to  purchase  the  Premises  held by Lessee  shall be  subject to similar
adjustment  to 110% of the price  previously  in effect,  and (ii) all fixed and
non-fixed  rental  adjustments  scheduled during the remainder of the Lease term
shall be increased to 110% of the scheduled  adjusted rent.
        (e) Lessee's remedy for any breach of Paragraph 12.1 by Lessor  shall be
limited to compensatory damages and/or injunctive relief.
          12.2 Terms and Conditions Applicable to Assignment and Subletting.
        (a) Regardless of Lessor's consent,  no assignment or subletting  shall:
(I) be effective without the express written  assumption by such assignee or sub
lessee of the obligations of Lessee under this Lease, (ii) release Lessee of any
obligations  hereunder,  or (iii) alter the primary  liability of Lessee for the
payment of Rent or for the performance of any other  obligations to be performed
by Lessee.
        (b) Lessor may accept Rent or performance of Lessee's  obligations  from
any person other than Lessee  pending  approval or disapproval of an assignment.
Neither  a delay in the  approval  or  disapproval  of such  assignment  nor the
acceptance  of Rent or  performance  shall  constitute  a waiver or estoppels of
Lessor's right to exercise its remedies for Lessee's Default or Breach.
        (c) Lessor's  consent to any  assignment or subletting shall not consti-
tute a consent to any subsequent  assignment or subletting.
        (d) In the event of any Default or Breach by Lessee,  Lessor may proceed
directly  against  Lessee,  any  Guarantors or anyone else  responsible  for the
performance of Lessee's obligations under this Lease,  including any assignee or
sub lessee,  without first exhausting Lessor's remedies against any other person
or entity responsible therefore to Lessor, or any security held by Lessor.
        (e) Each request for consent to an assignment or subletting shall  be in
writing, accompanied by information relevant to Lessor's determination as to the
financial and operational  responsibility  and  appropriateness  of the proposed
assignee or sub- lessee,

   --------

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   Initials                           PAGE 8 of 15

 including but not limited to the intended use and/or  required  modification of
 the Premises, if any, together with a fee of $500 as consideration for Lessor's
 considering and processing  said request.  Lessee agrees to provide Lessor with
 such other or additional  information and/or documentation as may be reasonably
 requested. (See also Paragraph 36)
          (f) Any assignee of, or sub-lessee  under, this Lease shall, by reason
 of accepting  such  assignment or entering into such sublease be deemed to have
 assumed and agreed to conform  and comply  with each and every term,  covenant,
 condition  and  obligation  herein to be observed or performed by Lessee during
 the term of said  assignment or sublease,  other than such  obligations  as are
 contrary to or  inconsistent  with  provisions  of an assignment or sublease to
 which Lessor has specifically consented to in writing.
          (g)  Lessor's  consent  to any  assignment  or  subletting  shall  not
 transfer  to the  assignee or  sub-lessee  any Option  granted to the  original
 Lessee by this Lease  unless such  transfer  is  specifically  consented  to by
 Lessor in writing. (See Paragraph 39.2)
      12.3  Additional  Terms  and  Conditions  Applicable  to  Subletting.  The
 following  terms and conditions  shall apply to any subletting by Lessee of all
 or any part of the Premises and shall be deemed included in all subleases under
 this Lease whether or not expressly incorporated therein:
        (a) Lessee hereby assigns and transfers to Lessor all of Lessee's Inter-
est in all Rent  payable on any  sublease,  and Lessor may collect such Rent and
apply same toward Lessee's obligations under this Lease; provided, however, that
until a Breach shall occur in the  performance of Lessee's  obligations,  Lessee
may collect said Rent. In the event that the amount  collected by Lessor exceeds
Lessee's  obligations any such excess shall be refunded to Lessee.  Lessor shall
not, by reason of the  foregoing  or any  assignment  of such  sublease,  nor by
reason of the  collection of Rent, be deemed  liable to the  sub-lessee  for any
failure of Lessee to perform and comply with any of Lessee's obligations to such
sub-lessee.   Lessee  hereby   irrevocably   authorizes  and  directs  any  such
sub-lessee,  upon receipt of a written  notice from Lessor stating that a Breach
exists In the  performance of Lessee's  obligations  under this Lease, to pay to
Lessor all Rent due and to become due under the sublease.  Sub-lessee shall rely
upon any such notice  from Lessor and shall pay all Rents to Lessor  without any
obligation or right to inquire as to whether such Breach exists, notwithstanding
any claim from Lessee to the  contrary.
        (b) In the event of a Breach by Lessee, Lessor may, at its option, re-
quire sub-lessee to at torn to Lessor, in which event Lessor shall undertake the
obligations  of the sublessor  under such sublease from the time of the exercise
of said option to the expiration of such  sublease;  provided,  however,  Lessor
shall not be liable  for any  prepaid  rents or  security  deposit  paid by such
sub-lessee  to such  sublessor  or for any prior  Defaults  or  Breaches of such
sublessor.

<PAGE>

        (c) Any matter requiring the consent of the  sublessor  under a sublease
shall also require the consent of Lessor.
        (d) No  sub-lessee shall further assign or sublet all or any part of the
Premises without Lessor's prior written consent.
        (e) Lessor  shall  deliver a copy of  any notice of Default or Breach by
Lessee to the sub-lessee, who shall have the right to cure the Default of Lessee
within the grace period, if any,  specified in such notice. The sub-lessee shall
have a right of  reimbursement  and offset from and against  Lessee for any such
Defaults cured by the sub-lessee.
13.  Default;  Breach; Remedies.
     13.1 Default;  Breach. A "Default" is defined as a failure by the Lessee to
comply  with or perform  any of the terms,  covenants,  conditions  or Rules and
Regulations  under this Lease. A "Breach" is defined as the occurrence of one or
more of the following  Defaults,  and the failure of Lessee to cure such Default
within any applicable grace period:
        (a) The abandonment of  the Premises;  or the  vacating  of the Premises
without  providing a  commercially  reasonable  level of security,  or where the
coverage of the property insurance  described in Paragraph 8.3 is jeopardized as
a result  thereof,  or  without  providing  reasonable  assurances  to  minimize
potential vandalism.
        (b) The failure of Lessee to make any  payment  of Rent or any  Security
Deposit required to be made by Lessee hereunder, whether to Lessor or to a third
party, when due, to provide reasonable  evidence of insurance or surety bond, or
to fulfill any obligation  under this Lease which endangers or threatens life or
property, where such failure continues for a period of 3 business days following
written notice to Lessee.
        (c) The failure  by Lessee to provide (i) reasonable written evidence of
compliance with Applicable Requirements,  (ii) the service contracts,  (iii) the
rescission  of an  unauthorized  assignment  or  subletting,  (iv) an  Estoppels
Certificate,  (v)  a  requested  subordination,  (vi)  evidence  concerning  any
guaranty  and/or  Guarantor,  (vii) any document  requested  under Paragraph 42,
(viii) material safety data sheets (MSDS),  or (ix) any other  documentation  or
information  which  Lessor may  reasonably  require of Lessee under the terms of
this Lease,  where any such failure  continues for a period of 10 days following
written  notice to Lessee.
        (d) A Default by Lessee as to the terms, covenants, conditions or provi-
sions of this Lease,  or of the rules adopted under  Paragraph 40 hereof,  other
than those described in  subparagraphs  13.1(a),  (b) or (c), above,  where such
Default  continues  for a period  of 30 days  after  written  notice;  provided,
however,  that if the nature of Lessee's  Default is such that more than 30 days
are reasonably required for its cure, then it shall not be deemed to be a Breach
if  Lessee  commences  such  cure  within  said  30 day  period  and  thereafter
diligently prosecutes such cure to completion.
        (e) The occurrence of any of the following events: (I) the making of any
general arrangement or assignment for the benefit of creditors;  (ii) becoming a
"debtor"  as  defined  in 11 U.S.C.  ss.101  or any  successor  statute  thereto
(unless,  in the case of a petition filed against Lessee,  the same is dismissed
within 60  days);  (iii)  the  appointment  of a  trustee  or  receiver  to take
possession of substantially all of Lessee's assets located at the Premises or of
Lessee's  interest in this Lease,  where  possession  is not  restored to Lessee
within 30 days; or (iv) the attachment,  execution or other judicial  seizure of
substantially  all of  Lessee's  assets  located at the  Premises or of Lessee's
interest in this Lease,  where such  seizure is not  discharged  within 30 days;
provided,  however,  in the event that any provision of this subparagraph (e) is
contrary to any applicable  law, such provision  shall be of no force or effect,
and not affect the validity of the remaining provisions.
        (f) The discovery that any financial statement of Lessee or of any
Guarantor given to Lessor was materially false.
        (g) If the  performance of  Lessee's  obligations  under  this  Lease is
guaranteed:  (i) the death of a Guarantor, (ii) the termination of a Guarantor's
liability with respect to this Lease other than in accordance  with the terms of
such  guaranty,  (iii) a  Guarantor's  becoming  insolvent  or the  subject of a
bankruptcy filing,  (iv) a Guarantor's  refusal to honor the guaranty,  or (v) a
Guarantor's  breach of its guaranty  obligation on an  anticipatory  basis,  and
Lessee's failure,  within 60 days following written notice of any such event, to
provide written alternative assurance or security,  which, when coupled with the
then  existing  resources of Lessee,  equals or exceeds the  combined  financial
resources of Lessee and the Guarantors  that existed at the time of execution of
this Lease.
     13.2 Remedies.  If Lessee fails to perform any of its affirmative duties or
obligations,  within 10 days after  written  notice (or in case of an emergency,
without notice),  Lessor may, at its option,  perform such duty or obligation on
Lessee's  behalf,  including  but not  limited to the  obtaining  of  reasonably
required  bonds,  insurance  policies,  or  governmental  licenses,  permits  or
approvals.  Lessee  shall pay to Lessor an amount equal to 115% of the costs and
expenses  incurred  by Lessor in such  performance  upon  receipt  of an invoice
therefore.  In the event of a Breach, Lessor may, with or without further notice
or demand,  and without  limiting  Lessor in the exercise of any right or remedy
which Lessor may have by reason of such Breach:
          (a)  Terminate  Lessee's  right to  possession  of the Premises by any
lawful  means,  in which  case this  Lease  shall  terminate  and  Lessee  shall
immediately  surrender  possession  to  Lessor.  In such event  Lessor  shall be
entitled to recover  from  Lessee:  (i) the unpaid Rent which had been earned at
the time of  termination;  (Ii) the worth at the time of award of the  amount by
which the unpaid rent which would have been earned after  termination  until the
time of award  exceeds  the amount of such  rental  loss that the Lessee  proves
could have been reasonably avoided;  (iii) the worth at the time of award of the
amount by which the  unpaid  rent for the  balance of the term after the time of
award exceeds  the amount   of such rental  loss that  the Lessee  proves  could
coule be  reasonably  afforded.  The  worth  at the time of award of the  amount
referred to in provision  (iii) of the immediately  preceding  sentence shall be
computed by discounting  such amount at the discount rate of the Federal Reserve
Bank of the District  within which the Premises are located at the time of award
plus one percent Efforts by Lessor to mitigate damages caused by Lessee's Breach
of this Lease shall not waive Lessor's right to recover  damages under Paragraph
12. If termination of this Lease is obtained  through the provisional  remedy of
unlawful detailer, Lessor shall have the right to recover in such proceeding any
unpaid Rent and damages as are  recoverable  therein,  or Lessor may reserve the
right to recover  all or any part  thereof in a separate  suit.  If a notice and
grace period required under Paragraph 13.1 was not previously given, a notice to
pay rent or quit,  or to  perform or quit given to Lessee  under  the  unlawful
retainer statute shall also constitute the notice required by Paragraph 13.1. In
such case,  the  applicable  grace  period  required by  Paragraph  13.1 and the
unlawful retainer statute shall run  concurrently,  and the failure of Lessee to
cure the  Default  within  the  greater  of the two  such  grace  periods  shall
constitute both an unlawful detailer and a Breach of this Lease entitling Lessor
to the remedies provided for in this Lease and/or by said statute.
          (b) Continue the Lease and Lessee's  right to  possession  and recover
the Rent as it becomes due, in which event Lessee may sublet or assign,  subject
only to reasonable  limitations.  Acts of maintenance,  efforts to relet, and/or
the  appointment  of a receiver to protect  the  Lessor's  interests,  shall not
constitute a termination of the Lessee's right to possession.
          (c)  Pursue  any  other  remedy  now or hereafter available  under the
laws or judicial  decisions of the state  wherein the Premises are located.  The
expiration or termination of this Lease and/or the termination of Lessee's right
to  possession  shall not relieve  Lessee  from  liability  under any  indemnity
provisions  of this Lease as to matters  occurring  or accruing  during the term
hereof or by reason of  Lessee's  occupancy  of the  Premises.
        13.3  Inducement Recapture.  Any agreement  for   free or abated rent or
other  charges,  or for the  giving or paying by Lessor to or for  Lessee of any
cash or other bonus, Inducement or consideration for Lessee's entering into this
Lease,  all of which  concessions  are  hereinafter  referred to as  "Inducement
Provisions,"  shall be  deemed  conditioned  upon  Lessee's  full  and  faithful
performance of all of the terms,  covenants and  conditions of this Lease.  Upon
Breach  of  this  Lease  by  Lessee,   any  such   Inducement   Provision  shall
automatically  be deemed  deleted  from this  Lease and of no  further  force or
effect,  and  any  rent,  other  charge,  bonus,   inducement  or  consideration
theretofore abated,  given or paid by Lessor under such an inducement  Provision
shall be immediately  due and payable by Lessee to Lessor,  notwithstanding  any
subsequent  cure of said Breach by Lessee.  The  acceptance by Lessor of rent or
the cure of the Breach which initiated the operation of this paragraph shall not
be  deemed a  waiver  by  Lessor  of the  provisions  of this  paragraph  unless
specifically so stated in writing by Lessor at the time of such acceptance.
        13.4 Late  Charge*.   Lessee  hereby acknowledges that  late  payment by
Lessee of Rent will cause Lessor to incur costs not  contemplated by this Lease,
the exact amount of which will be extremely difficult to ascertain.  Such costs

<PAGE>

include,  but are not limited to,  processing and accounting  charges,  and late
charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent
shall not be  received by Lessor  within 5 days after such amount  shall be due,
then, without any requirement for notice to Lessee, Lessee shall immediately pay
to Lessor a one-time  late charge  equal to 10% of each such  overdue  amount or
$100,  whichever  is  greater.  The Parties  hereby  agree that such late charge
represents  a fair and  reasonable  estimate  of the costs  Lessor will Incur by
reason of such late  payment.  Acceptance of such late charge by Lessor shall in
no event  constitute a waiver of Lessee's Default or Breach with respect to such
overdue amount, nor prevent the exercise of any of the other rights and remedies
granted hereunder. In the event that a late charge is payable hereunder, whether
or  not  collected,   for  3  consecutive   installments   of  Base  Rent,  then
notwithstanding any provision of this Lease to the contrary, Base Rent shall, at
Lessor's option, become due and payable quarterly in advance.
     13.5 Interest Any monetary  payment due Lessor  hereunder,  other than late
charges, not received by Lessor, when due as to scheduled payments (such as Base
Rent) or within 30 days following the date on which it was due for non-scheduled
payment,  shall bear interest from the date when due, as to scheduled  payments,
or the 31st day  after it was due as to  non-scheduled  payments.  The  interest
("Interest")  charged  shall be  computed at the rate of 10% per annum but shall
not exceed the maximum rate  allowed by law.  Interest is payable in addition to
the potential late charge provided for in Paragraph 13.4.
     13.6 Breach by Lessor.
        (a) Notice of Breach. Lessor shall not be deemed in breach of this Lease
unless Lessor fails within a reasonable  time to perform an obligation  required
to be performed by Lessor.  For purposes of this  Paragraph,  a reasonable  time
shall in no event be less than 30 days after  receipt by Lessor,  and any Lender
whose name and  address  shall have been  furnished  Lessee in writing  for such
purpose,  of written notice specifying wherein such obligation of Lessor has not
been performed;  provided, however, that if the nature of Lessor's obligation is
such that more than 30 days are reasonably  required for its  performance,  then
Lessor shall not be in breach if  performance  is  commenced  within such 30 day
period and thereafter diligently pursued to completion.
        (b) Performance by Lessee on Behalf of Lessor. In the event that neither
Lessor nor Lender cures said breach within 30 days after receipt of said notice,
or if having commenced said cure they do not diligently pursue it to completion,
then Lessee may elect to cure said  breach at  Lessee's  expense and offset from
Rent the actual and reasonable cost to perform such cure, provided however, that
such offset  shall not exceed an amount equal to the greater of one month's Base
Rent or the Security  Deposit,  reserving  Lessee's right to seek  reimbursement
from  Lessor.  Lessee  shall  document  the cost of said  cure and  supply  said
documentation to Lessor.
14.  Condemnation.  If the  Premises or any portion  thereof are taken under the
power of eminent  domain or sold under the threat of the  exercise of said power
(collectively  "Condemnation"),  this Lease shall terminate as to the part taken
as of the date the condemning  authority  takes title or  possession,  whichever
first occurs. If more than 10% of the Building, or more than 25% of that portion
of the Premises not occupied by any building,  is taken by Condemnation,  Lessee
may, at Lessee's option,  to be exercised in writing within 10 days after Lessor
shall have given Lessee written notice of such taking (or in the absence of such
notice,  within  10  days  after  the  condemning  authority  shall  have  taken
possession)  terminate this Lease as of the date the condemning  authority takes
such possession.  If Lessee does not terminate this Lease in accordance with the
foregoing, this Lease shall remain in full force and effect as to the portion of
the Premises remaining, except that the Base Rent shall be reduced in proportion
to the  reduction  in  utility  of the  Premises  caused  by such  Condemnation.
Condemnation  awards and/or  payments  shall be the property of Lessor,  whether
such  award  shall  be made as  compensation  for  diminution  in  value  of the
leasehold,  the value of the part taken,  or for  severance  damages;  provided,
however,  that  Lessee  shall  be  entitled  to any  compensation  for  Lessee's
relocation  expenses,  loss of business goodwill and/or Trade Fixtures,  without
regard to whether or not this Lease is terminated  pursuant to the provisions of
this Paragraph.  All Alterations and Utility  Installations made to the Premises
by Lessee,  for purposes of Condemnation  only, shall be considered the property
of the Lessee and Lessee shall be entitled to any and all compensation  which is
payable  therefore.  In the event that this Lease is not terminated by reason of
the Condemnation,  Lessor shall repair any damage to the Premises caused by such
Condemnation.
15.      Brokerage Fees.
     15.1  Additional  Commission.  In addition to the payments owed pursuant to
Paragraph  1.9 above,  and  unless  Lessor and the  Brokers  otherwise  agree in
writing,  Lessor agrees that: (a) if Lessee exercises any Option,  (b) if Lessee
acquires  any  rights to the  Premises  or other  premises  owned by Lessor  and
located within the same Project,  if any,  within which the Premises is located,
(c) if Lessee remains in possession of the Premises, with the consent of Lessor,
after the expiration of this Lease, or (d) if Base Rent is increased, whether by
agreement or operation of an escalation  clause herein,  then,  Lessor shall pay
Brokers a fee in  accordance  with the  schedule of the Brokers in effect at the
time of the execution of this Lease.
     15.2  Assumption  of  Obligations.  Any  buyer or  transferee  of  Lessor's
interest  in this  Lease  shall be deemed to have  assumed  Lessor's  obligation
hereunder.  Brokers  shall be third party  beneficiaries  of the  provisions  of
Paragraphs  1.9,15, 22 and 31. If Lessor fails to pay to Brokers any amounts due
as and for brokerage  fees  pertaining to this Lease when due, then such amounts
shall  accrue  Interest.  In  addition,  if Lessor  fails to pay any  amounts to
Lessee's Broker when due, Lessee's Broker may send written notice  to Lessor and
Lessee of such amounts  against  Rent.  In addition,  Lessee's  Brocker shall be
deemed to be a third party beneficiary of any commission  agreement entered into
by and/or  between  Lessor  and  Lessor's  Broker  for the  limited  purpose  of
collecting any brokerage fee owed.
     15.3 Representations and Indemnities of Broker Relationships.  Lessee and
Lessor each  represent and warrant to the other that it has had no dealings with
any  person,  firm,  broker  or  finder  (other  than  the  Brokers,  if any) in
connection  with this  Lease,  and that no one other than said named  Brokers is
entitled to any  commission or finder's fee in connection  herewith.  Lessee and
Lessor do each hereby  agree to  Indemnify,  protect,  defend and hold the other
harmless  from and against  liability for  compensation  or charges which may be
claimed by any such unnamed  broker,  finder or other similar party by reason of
any  dealings  or  actions  of the  indemnifying  Party,  including  any  costs,
expenses, attorneys' fees reasonably incurred with respect thereto.
16. Estoppels Certificates.
        (a) Each  Party  (as  "Responding  Party")  shall within  10  days after
written  notice  from  the  other  Party  (the   "Requesting   Party")  execute,
acknowledge  and deliver to the Requesting  Party a statement in writing in form
similar to the then most current  "Estoppels  Certificate" form published by the
AIR  Commercial  Real  Estate  Association,  plus such  additional  information,
confirmation and/or statements as may be reasonably  requested by the Requesting
Party.
        (b) If the  Responding Party shall fail to execute or deliver the Estop-
pels Certificate  within such 10 day period, the Requesting Party may execute an
Estoppels  Certificate  stating that:  (i) the Lease Is in full force and effect
without  modification except as may be represented by the Requesting Party, (II)
there are no uncured defaults in the Requesting Party's  performance,  and (ill)
if Lessor is the Requesting  Party, not more than one month's rent has been paid
in advance. Prospective purchasers and encumbrances may rely upon the Requesting
Party's Estoppels Certificate,  and the Responding Party shall be Estoppels from
denying the truth of the facts contained in said Certificate.
        (c) If  Lessor desires to finance,  refinance,  or sell the Premises, or
any part  thereof,  Lessee and all  Guarantors  shall  deliver to any  potential
lender or purchaser  designated  by Lessor such  financial  statements as may be
reasonably  required by such lender or  purchaser,  including but not limited to
Lessee's  financial  statements  for  the  past  3  years.  All  such  financial
statements  shall  be  received  by  Lessor  and such  lender  or  purchaser  in
confidence and shall be used only for the purposes herein set forth.
17. Definition of Lessor.  The term "Lessor" as used herein shall mean the owner
or owners at the time in question of the fee title to the Premises,  or, if this
is a sublease,  of the Lessee's  interest in the prior lease.  In the event of a
transfer of Lessor's  title or  interest in the  Premises or this Lease,  Lessor
shall  deliver to the  transferee  or assignee (in cash or by credit) any unused
Security  Deposit held by Lessor.  Except as provided in Paragraph 15, upon such
transfer or assignment and delivery of the Security Deposit,  as aforesaid,  the
prior Lessor shall be relieved of all liability with respect to the  obligations
and/or  covenants  under this Lease  thereafter  to be  performed by the Lessor.
Subject to the foregoing,  the obligations  and/or covenants in this Lease to be
performed  by the Lessor  shall be binding  only upon the Lessor as  hereinabove
defined.
18.  Severability.  The invalidity of any provision of this Lease, as determined
by a court of competent jurisdiction, shall in no way affect the validity of any
other provision hereof.
19. Days.  Unless  otherwise  specifically  indicated to the contrary,  the word
"days" as used in this Lease shall mean and refer to calendar days.

<PAGE>

20.  Limitation on Liability.  The  obligations of Lessor under this Lease shall
not  constitute  personal  obligations  of  Lessor  or  its  partners,  members,
directors, officers or shareholders,  and Lessee shall look to the Premises, and
to no other assets of Lessor,  for the  satisfaction  of any liability of Lessor
with  respect  to this  Lease,  and shall  not seek  recourse  against  Lessor's
partners, members, directors, officers or shareholders, or any of their personal
assets for such satisfaction.
21. Time of Essence.  Time is of the essence with respect to the  performance of
all obligations to be performed or observed by the Parties under this Lease.
22. No Prior or Other  Agreements;  Broker  Disclaimer.  This Lease contains all
agreements  between the Parties with respect to any matter mentioned herein, and
no other prior or contemporaneous agreement or understanding shall be effective.
Lessor and Lessee each  represents and warrants to the Brokers that it has made,
and is relying solely upon,  Its own  investigation  as to the nature,  quality,
character and financial  responsibility  of the other Party to this Lease and as
to the use,  nature,  quality and  character  of the  Premises.  Brokers have no
responsibility  with  respect  thereto or with  respect to any default or breach
hereof by either Party.  The  liability  (including  court costs and  attorneys'
fees),  of any  Broker  with  respect to  negotiation,  execution,  delivery  or
performance  by either  Lessor or Lessee  under this Lease or any  amendment  or
modification hereto shall be limited to an amount up to the fee received by such
Broker pursuant to this Lease; provided,  however, that the foregoing limitation
on each Broker's  liability  shall not be applicable to any gross  negligence or
willful misconduct of such Broker.
23. Notices.
     23.1 Notice  Requirements.  All notices required or permitted by this Lease
or applicable law shall be in writing and may be delivered in person (by hand or
by courier)  or may be sent by regular,  certified  or  registered  mail or U.S.
Postal Service Express Mail, with postage prepaid, or by facsimile transmission,
and shall be deemed  sufficiently  given if served in a manner specified in this
Paragraph 23. The addresses noted adjacent to a Party's  signature on this Lease
shall be that Party's  address for delivery or mailing of notices.  Either Party
may by written  notice to the other  specify a  different  address  for  notice,
except that upon Lessee's taking possession of the Premises,  the Premises shall
constitute Lessee's address for notice. A copy of all notices to Lessor shall be
concurrently  transmitted  to such party or parties at such  addresses as Lessor
may from time to time hereafter designate in writing.
     23.2 Date of Notice.  Any notice  sent by  registered  or  certified  mail,
return receipt requested, shall be deemed given on the date of delivery shown on
the receipt card, or if no delivery date is shown, the postmark thereon. If sent
by regular  mail the  notice  shall be deemed  given 48 hours  after the same is
addressed as required herein and mailed with postage prepaid.  Notices delivered
by United  States  Express Mail or overnight  courier  that  guarantee  next day
delivery shall be deemed given 24 hours after delivery of the same to the Postal
Service or courier.  Notices  transmitted by facsimile  transmission  or similar
means  shall  be  deemed  delivered  upon  telephone   confirmation  of  receipt
(confirmation  report from fax machine is  sufficient),  provided a copy is also
delivered via delivery or mail.  If notice is received on a Saturday,  Sunday or
legal holiday, it shall be deemed received on the next business day.
     24.  Waivers.  No waiver by  Lessor of the  Default  or Breach of any term,
covenant or  condition  hereof by Lessee,  shall be deemed a waiver of any other
term,  covenant or condition hereof,  or of any subsequent  Default or Breach by
Lessee of the same or of any other term, covenant or condition hereof.  Lessor's
consent  to, or approval  of, any act shall not be deemed to render  unnecessary
the obtaining of Lessor's  consent to, or approval of, any subsequent or similar
act by Lessee,  or be  construed  as the basis of an  estoppel  to  enforce  the
provision or provisions of this Lease requiring such consent.  The acceptance of
Rent by Lessor  shall not be a waiver of any  Default or Breach by  Lessee.  Any
payment by Lessee may be  accepted by Lessor on account of moneys or damages due
Lessor,  notwithstanding any qualifying  statements or conditions made by Lessee
in connection therewith,  which such statements and/or conditions shall be of no
force or effect whatsoever unless specifically agreed to in writing by Lessor at
or before the time of deposit of such payment.
25. Disclosures Regarding The Nature of a Real Estate Agency Relationship.
        (a) When entering into a discussion with a real estate agent regarding a
real estate  transaction,  a Lessor or Lessee should from the outset  understand
what  type of agency  relationship  or  representation  it has with the agent or
agents in the transaction.  Lessor and Lessee  acknowledge  being advised by the
Brokers in this transaction, as follows:
               (i)  Lessor's  Agent.  A Lessor's agent under a listing agreement
with the Lessor  acts as the agent for the  Lessor  only.  A  Lessor's  agent or
subagent has the following affirmative  obligations:  To the Lessor: A fiduciary
duty of utmost  care,  integrity,  honesty,  and  loyalty in  dealings  with the
Lessor.  To the Leasee and the Lessor Diligent exercise of reasonable skills and
care in performance of the agent's duties.  B. A duty of honest and fair dealing
and good faith.  C. A duty to disclose  all facts known to the agent  materially
affecting  the value or  desirability  of the property that are not known to, or
within the diligent  attention and observation of, the Parties.  An agent is not
obligated to reveal to either Party any confidential  information  obtained from
the other Party which does not involve the affirmative duties set forth above.
               (ii) Lessee's agent. An agent can agree to  act as  agent for the
lessee only. In these situations, the agent is not theLessor's agent, even if by
agreement the agent may receive  compensation for services  rendered,  either in
full or in part  from the  Lessor.  An agent  acting  only for a Lessee  has the
following  affirmative  obligations.  To the Lessee:  A fiduciary duty of utmost
care integrity,  honesty, and loyalty in dealings with the Lessee. To the Lessee
and the I  lessor  : a.  Diligent  exercise  of  reasonable  skills  and care in
performance of the agent's duties, b. A duty of honest and fair dealing and good
faith, c. A duty to disclose all facts known to the agent  materially  affecting
the value or  desirability  of the property that are not known to, or within the
diligent attention and observation of, the Parties. An agent is not obligated to
reveal to either  Party any  confidential  information  obtained  from the other
Party which does not involve the affirmative duties set forth above.

                (iii) Agent Representing Both Lessor and  Lessee.  A real estate
agent,  either acting directly or through one or more' associate  licenses,  can
legally be the agent of both the Lessor  and the  Lessee in a  transaction,  but
only with the knowledge and consent of both the Lessor and the Lessee. In a dual
agency situation,  the agent has the following  affirmative  obligations to both
the  Lessor and the  Lessee:  a. A  fiduciary  duty of utmost  care,  integrity,
honesty and loyalty in the dealings with either  Lessor or the Lessee,  b. Other
duties to the  Lessor  and the Lessee as stated  above in  subparagraphs  (I) or
(II).  In  representing  both Lessor and  Lessee,  the agent may not without the
express permission of the respective Party, disclose to the other Party that the
Lessor will accept rent in an amount less than that  indicated in the listing or
that the  Lessee is willing to pay a higher  rent than that  offered.  The above
duties  of the agent in a real  estate  transaction  do not  relieve a Lessor or
Lessee from the responsibility to protect their own interests. Lessor and Lessee
should  carefully  read all  agreements to assure that they  adequately  express
their  understanding  of  the  transaction.  A real  estate  agent  is a  person
qualified  to advise  about  real  estate.  If legal or tax  advice is  desired,
consult a  competent  professional.
          (b)  Brokers  have no responsibility with  respect to any  default  or
breach  hereof  by  either  Party.  The  liability  (including  court  costs and
attorneys'  fees),  of any Broker with  respect to any breach of duty,  error or
omission relating to this Lease shall not exceed the fee received by such Broker
pursuant to this Lease; provided, however, that the foregoing limitation on each
Broker's  liability  shall not be applicable to any gross  negligence or willful
misconduct of such Broker.
          (c) Lessor  and Lessee  agree to identify to Brokers as "Confidential"
any  communication or information given Brokers that is considered by such Party
to be  confidential.
26.  No Right To  Holdover.  Lessee  has no right to  retain  possession  of the
Premises or any part thereof beyond the expiration or termination of this Lease.
In the event that Lessee  holds over,  then the Base Rent shall be  increased to
150% of the  Base  Rent  applicable  immediately  preceding  the  expiration  or
termination. Nothing contained herein shall be construed as consent by Lessor to
any  holding  over by Lessee.
27.  Cumulative  Remedies.  No  remedy  or  election  hereunder  shall be deemed
exclusive but shall, wherever possible, be cumulative with all other remedies at
law or in equity.
28.  Covenants and Conditions;  Construction of Agreement All provisions of this
Lease to be observed or performed by Lessee are both  covenants and  conditions.
In construing this Lease, all headings and titles are for the convenience of the
Parties only and shall not be considered a part of this Lease. Whenever required
by the context,  the singular shall include the plural and vice versa This Lease

<PAGE>

shall  not be  construed  as if  prepared  by one of  the  Parties,  but  rather
according to its fair meaning as a whole,  as if both Parties had-  prepared it.
29. Binding Effect; Choice of Law. This Lease shall be binding upon the Parties,
their  personal  representatives,  successors and assigns and be governed by the
laws of the State in which the Premises are located.  Any litigation between the
Parties hereto  concerning  this Lease shall be initiated in the county in which
the Premises are located.
30. Subordination; Attornment; Non-Disturbance.
     30.1  Subordination.  This Lease and any  Option  granted  hereby  shall be
subject and subordinate to any ground lease,  mortgage,  deed of trust, or other
hypothecation  or security  device  (collectively,  "Security  Device"),  now or
hereafter placed upon the Premises, to any and all advances made on the security
thereof,  and to all renewals,  modifications,  and extensions  thereof.  Lessee
agrees that the  holders of any such  Security  Devices (in this Lease  together
referred to as "Lender") shall have no liability or obligation to perform any of
the  obligations  of Lessor under this Lease.  Any Lender may elect to have this
Lease  and/or any Option  granted  hereby  superior to the lien of its  Security
Device by giving written notice thereof to Lessee, whereupon this Lease and such
Options  shall be deemed  prior to such  Security  Device,  notwithstanding  the
relative dates of the documentation or recordation thereof.
     30.2  Attornment In the event that Lessor  transfers title to the Premises,
or the Premises are acquired by another upon the foreclosure or termination of a
Security Device to which this Lease is subordinated (i) Lessee shall, subject to
the non-disturbance provisions of Paragraph 30.3, at torn to such new owner, and
upon request, enter into a new lease, containing all of the terms and provisions
of this Lease, with such new owner for the remainder of the term hereof,  or, at
the  election  of such new owner,  this Lease shall  automatically  become a new
Lease between  Lessee and such new owner,  upon all of the terms and  conditions
hereof,  for the remainder of the term hereof,  and (ii) Lessor shall thereafter
be relieved of any further obligations hereunder and such new owner shall assume
all of Lessor's obligations hereunder, except that such new owner shall not: (a)
be liable for any act or omission of any prior  lessor or with respect to events
occurring  prior to acquisition  of ownership;  (b) be subject to any offsets or
defenses  which  Lessee  might have  against any prior  lessor,  (c) be bound by
prepayment of more than one month's rent, or (d) be liable for the return of any
security deposit paid to any prior lessor.
     30.3  Non-Disturbance.  With  respect to Security  Devices  entered into by
Lessor after the execution of this Lease,  Lessee's  subordination of this Lease
shall  be  subject  to  receiving  a  commercially  reasonable   non-disturbance
agreement (a "Non-Disturbance  Agreement") from the Lender which Non-Disturbance
Agreement  provides  that Lessee's  possession of the Premises,  and this Lease,
including  any options to extend the term hereof,  will not be disturbed so long
as  Lessee  is not in  Breach  hereof  and at torn to the  record  owner  of the
Premises.  Further,  within 60 days after the  execution  of this Lease,  Lessor
shall  use its  commercially  reasonable  efforts  to  obtain a  Non-Disturbance
Agreement from the holder of any  pre-existing  Security Device which is secured
by  the   Premises.   In  the  event  that  Lessor  is  unable  to  provide  the
Non-Disturbance  Agreement  within  said 60 days,  then  Lessee may, at Lessee's
option,  directly  contact Lender and attempt to negotiate for the execution and
delivery of a Non-Disturbance Agreement.
     30.4 Self-Executing. The agreements contained in this Paragraph 30 shall be
effective  without the execution of any further  documents;  provided,  however,
that,  upon written  request from Lessor or a Lender in connection  with a sale,
financing or refinancing  of the Premises,  Lessee and Lessor shall execute such
further  writings as may be  reasonably  required  to  separately  document  any
subordination, attornment and/or Non-Disturbance Agreement provided for herein.
31.  Attorneys'  Fees.  If any  Party or Broker  brings an action or  proceeding
involving  the  Premises  whether  founded in tort,  contract  or equity,  or to
declare rights  hereunder,  the Prevailing  Party (as hereafter  defined) in any
such  proceeding,  action,  or appeal  thereon,  shall be entitled to reasonable
attorneys'  fees.  Such fees may be awarded in the same suit or  recovered  in a
separate  suit,  whether or not such action or proceeding is pursued to decision
or judgment. The term, "Prevailing Party" shall include,  without limitation,  a
Party or Broker who  substantially  obtains or defeats the relief sought, as the
case may be, whether by compromise,  settlement, judgment, or the abandonment by
the other Party or Broker of its claim or  defense.  The  attorneys'  fees award
shall not be computed in accordance  with any court fee  schedule,  but shall be
such as to fully reimburse all attorneys' fees reasonably incurred. In addition,
Lessor shall be entitled to attorneys' fees, costs and expenses  incurred in the
preparation  and service of notices of Default and  consultations  in connection
therewith, whether or not a legal action is subsequently commenced in connection
with  such  Default  or  resulting  Breach  ($200 is a  reasonable  minimum  per
occurrence for such services and  consultation).
32. Lessor's Access; Showing Premises; Repairs. Lessor and Lessor's agents shall
have the right to enter the Premises at any
33 Auctions  Lessee shall not conduct,  nor permit to be conducted,  any auction
upon the Premises without  Lessor's prior written  consent.  Lessor shall not be
obligated to exercise any standard of reasonableness  in determining  whether to
permit an auction.
34 Signs. Lessor may place on the Premises ordinary "For Sale" signs at any time
and  ordinary  "For Lease"  signs  during the last 6 months of the term  hereof.
Except for ordinary "for sublease"  signs,  Lessee shall not place any sign upon
the Premises without Lessor's prior written consent.  All signs must comply with
all Applicable Requirements.
35  Termination;  Merger.  Unless  specifically  stated  otherwise In writing by
Lessor,  the  voluntary or other  surrender of this Lease by Lessee,  the mutual
termination or cancellation hereof, or a termination hereof by Lessor for Breach
by Lessee,  shall  automatically  terminate any sublease or lesser estate In the
Premises;  provided,  however,  that Lessor may elect to continue any one or all
existing sub tenancies. Lessor's failure within 10 days following any such event
to elect to the  contrary  by written  notice to the  holder of any such  lesser
interest,  shall constitute  Lessor's election to have such event constitute the
termination of such interest.
36 Consents.  Except as otherwise  provided  herein,  wherever in this Lease the
consent of a Party is required to an act by or for the other Party, such consent
shall not be unreasonably withheld or delayed.  Lessor's actual reasonable costs
and expenses (including but not limited to architects',  attorneys',  engineers'
and other consultants' fees) incurred in the consideration of, or response to, a
request by Lessee for any Lessor consent,  including but not limited to consents
to an assignment,  a subletting or the presence or use of a Hazardous Substance,
shall be paid by Lessee upon receipt of an invoice and supporting  documentation
therefore.  Lessor's  consent to any act,  assignment  or  subletting  shall not
constitute an  acknowledgment  that no Default or Breach by Lessee of this Lease
exists,  nor shall such consent be deemed a waiver of any then existing  Default
or Breach,  except as may be otherwise  specifically stated in writing by Lessor
at the time of such  consent.  The  failure  to specify  herein  any  particular
condition to Lessor's consent shall not preclude the imposition by Lessor at the
time of consent of such further or other  conditions as are then reasonable with
reference to the  particular  matter for which  consent is being  given.  In the
event that  either  Party  disagrees  with any  determination  made by the other
hereunder  and  reasonably  requests  the  reasons for such  determination,  the
determining  party shall furnish its reasons in writing and In reasonable detail
within 10 business days following such request.
37. Guarantor.
     37.1 Execution.  The  Guarantors,  if any, shall each execute a guaranty in
the form most recently published by the AIR Commercial Real Estate  Association,
and each such  Guarantor  shall have the same  obligations  as Lessee under this
Lease.
     37.2 Default It shall  constitute a Default of the Lessee if any  Guarantor
fails or refuses,  upon request to provide: (a) evidence of the execution of the
guaranty,  including the authority of the party signing on Guarantor's behalf to
obligate Guarantor,  and in the case of a corporate Guarantor,  a certified copy
of a  resolution  of its  board of  directors  authorizing  the  making  of such
guaranty, (b) current financial statements, (c) an Estoppels Certificate, or (d)
written confirmation that the guaranty is still in effect.
38. Quiet  Possession.  Subject to payment by Lessee of the Rent and performance
of all of the  covenants,  conditions  and  provisions  on  Lessee's  part to be
observed and performed under this Lease,  Lessee shall have quiet possession and
quiet enjoyment of the Premises during the term hereof.
39.  Options.  If Lessee is  granted  an  Option,  as  defined  below,  then the
following provisions shall apply:
     39.1  Definition.  "Option" shall mean: (a) the right to extend the term of
or renew  this  Lease or to extend or renew any lease  that  Lessee has on other
property  of  Lessor;  (b) the right of first  refusal  or first  offer to lease
either the  Premises or other  property of Lessor;  (c) the right to purchase or
the right of first refusal to purchase the Premises or other property of Lessor.

<PAGE>

     39.2 Options Personal To Original  Lessee.  Any Option granted to Lessee in
this  Lease is  personal  to the  original  Lessee,  and cannot be  assigned  or
exercised by anyone other than said original  Lessee and only while the original
Lessee is in full  possession of the Premises and, if requested by Lessor,  with
Lessee  certifying  that Lessee has no  intention  of  thereafter  assigning  or
subletting.
     39.3 Multiple Options. In the event that Lessee has any multiple Options to
extend or renew this Lease, a later Option cannot be exercised  unless the prior
Options have been validly exercised.
     39.4 Effect of Default on Options.
        (a) Lessee  shall have no right to exercise  an  Option:  (i) during the
period  commencing with the giving of any notice of Default and continuing until
said  Default  is  cured,  (ii)  during  the  period  of time any Rent is unpaid
(without  regard to whether notice  thereof is given  Lessee),  (iii) during the
time  Lessee is in Breach of this  Lease,  or (iv) in the event that  Lessee has
been given 3 or more  notices of separate  Default,  whether or not the Defaults
are cured, during the 12 month period immediately  preceding the exercise of the
Option.
        (b) The  period of time  within  which an Option may be  exercised shall
not be  extended or  enlarged  by reason of  Lessee's  inability  to exercise an
Option because of the provisions of Paragraph 39.4(a).
        (c)  An  Option  shall   terminate and be of no further force or effect,
notwithstanding  Lessee's due and timely exercise of the Option,  if, after such
exercise and prior to the commencement of the extended term or completion of the
purchase,  (i) Lessee  falls to pay Rent for a period of 30 days after such Rent
becomes due (without any necessity of Lessor to give notice thereof), or (ii) if
Lessee commits a Breach of this Lease.
40.  Multiple  Buildings.  If the  Premises  are a part of a group of  buildings
controlled  by Lessor,  Lessee  agrees  that it will abide by and conform to all
reasonable rules and regulations which Lessor may make from time to time for the
management,  safety,  and  care of  said  properties,  including  the  care  and
cleanliness  of the grounds and including the parking,  loading and unloading of
vehicles,  and  to  cause  its  employees,   suppliers,   shippers,   customers,
contractors and invitees to so abide and conform.  Lessee also agrees to pay its
fair  share of common  expenses  incurred  in  connection  with  such  rules and
regulations.
41.  Security  Measures.  Lessee  hereby  acknowledges  that the Rent payable to
Lessor  hereunder  does not include the cost of guard service or other  security
measures,  and that Lessor shall have no obligation  whatsoever to provide same.
Lessee assumes all  responsibility  for the protection of the Premises,  Lessee,
its agents and invitees and their property from the acts of third parties.
42.  Reservations.  Lessor  reserves to itself the right,  from time to time, to
grant,  without the  consent or joinder of Lessee,  such  easements,  rights and
dedications that Lessor deems necessary,  and to cause the recordation of parcel
maps and restrictions,  so long as such easements, rights, dedications, maps and
restrictions  do not  unreasonably  interfere  with the use of the  Premises  by
Lessee.  Lessee agrees to sign any documents  reasonably  requested by Lessor to
effectuate any such easement rights, dedication, map or restrictions.
43.  Performance  Under  Protest If at any time a dispute  shall arise as to any
amount or sum of money to be paid by one Party to the other under the provisions
hereof, the Party against whom the obligation to pay the money is asserted shall
have the right to make payment  "under  protest"  and such payment  shall not be
regarded as a voluntary payment and there shall survive the right on the part of
said Party to  institute  suit for recovery of such sum. If It shall be adjudged
that there was no legal  obligation on the part of said Party to pay such sum or
any part  thereof,  said Party shall be entitled to recover  such sum or so much
thereof as it was not legally required to pay.
44.  Authority; Multiple Parties; Execution.
          (a) If either Party hereto is a corporation,  trust, limited liability
company, partnership, or similar entity, each individual executing this Lease on
behalf of such entity  represents and warrants that he or she is duly authorized
to execute and deliver  this Lease on its behalf.  Each party  shall,  within 30
days after  request,  deliver to the other party  satisfactory  evidence of such
authority.
          (b) If this  Lease is  executed  by more than one  person or entity as
"Lessee",  each such  person or entity  shall be jointly  and  severally  liable
hereunder.  It Is agreed that any one of the named Lessees shall be empowered to
execute and amendment to this Lease, orother document ancillary thereto and bind
all of the named Lessees, and Lessor may rely on the same as if all of the names
Lessees had executed such document.
          (c) This Lease may be executed by the Parties in counterparts, each of
which shall be deemed an original and of which together shall constitute one and
the same instrument.
45.  conflict  between  the printed  provisions of this Lease and typewritten or
handwritten  provisions  shall be controlled by the  typewritten  or handwritten
provisions.  Party or their  agent  and  submission  of same to the other  Party
shall  not be deemed an offer to lease to the  other  Party.  This  Lease is not
intended to be binding until executed and delivered by all Parties hereto.
47.  Amendments.  This  Lease may be  modified  only in  writing,  signed by the
Parties  in  interest  at the time of the  modification.  As long as they do not
materially  change Lessee's  obligations  hereunder,  Lessee agrees to make such
reasonable  non-monetary  modifications  to  this  Lease  as may  be  reasonably
required by a Lender In  connection  with the  obtaining of normal  financing or
refinancing
48. Waiver of Jury Trial.  THE PARTIES HEREBY WAIVE THEIR  RESPECTIVE  RIGHTS TO
TRIAL BY JURY IN ANY ACTION OR PROCEEDING  INVOLVING THE PROPERTY OR ARISING OUT
OF THIS AGREEMENT.
49. Mediation and Arbitration of Disputes.  An Addendum  requiring the Mediation
and/or the  Arbitration  of all  disputes  between  the Parties  and/or  Brokers
arising out of this Lease D is D Is not attached to this Lease.
50.  Americans with  Disabilities  Act. Since compliance with the Americans with
Disabilities Act (ADA) is dependent upon Lessee's  specific use of the Premises,
Lessor  makes no warranty or  representation  as to whether or not the  Premises
comply with ADA or any similar  legislation.  In the event that  Lessee's use of
the Premises requires  modifications or additions to the Premises in order to be
in ADA compliance, Lessee agrees to make any such necessary modifications and/or
additions at Lessee's expense.

LESSOR AND LESSEE HAVE  CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND
PROVISION  CONTAINED  HEREIN,  AND BY THE  EXECUTION  OF THIS  LEASE  SHOW THEIR
INFORMED AND VOLUNTARY  CONSENT  THERETO.  THE PARTIES HEREBY AGREE THAT, AT THE
TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE
AND  EFFECTUATE  THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE
PREMISES

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

   ATTENTION:  NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AIR COMMERCIAL
   REAL ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL  SUFFICIENCY,  LEGAL
   EFFECT,  OR TAX  CONSEQUENCES  OF THIS LEASE OR THE  TRANSACTION  TO WHICH IT
   RELATES. THE PARTIES ARE URGED TO:
   1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE.
   2. RETAIN APPROPRIATE CONSULTANTS  TO REVIEW AND INVESTIGATE THE CONDITION OF
   THE PREMISES.  SAID INVESTIGATION   SHOULD INCLUDE BUT NOT BE LIMITED TO: THE
   POSSIBLE PRESENCE  OF HAZARDOUS SUBSTANCES,  THE ZONING OF THE PREMISES,  THE
   STRUCTURAL INTEGRITY,  THE  CONDITION  OF THE  ROOF  AND  OPERATING  SYSTEMS,
   COMPLIANCE  WITH  THE AMERICANS  WITH  DISABILITIES  ACT AND THE  SUITABILITY
   OF THE  PREMISES FOR LESSEE'S INTENDED USE.
   WARNING:  IF THE  PREMISES  ARE  LOCATED IN A STATE  OTHER  THAN  CALIFORNIA,
   CERTAIN  PROVISIONS  OF THE LEASE MAY NEED TO BE REVISED  TO COMPLY  WITH THE
   LAWS OF THE STATE IN WHICH THE PREMISES ARE LOCATED.

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

 The  parties  hereto  have  executed  this  Lease at the place and on the dates
 specified above their respective

<PAGE>
Executed at:

on:

By LESSOR:                                      By LESSEE:

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

By:_                                            By:.
Name Printed:.                                  Name Printed:.
Title:_____                                     Title:_____

By:_                                            By:.
Name Printed:.                                  Name Printed:.
Title:_____                                     Title:_____

By:
Name Printed:.
Title:____
Address:  608   S.   Marengo  AVENUE
       Alhamhra.   CA
Telephone:(626)   617-0642
Facsimile:) 626) _796-
Federal ID No.___________

<PAGE>

Telephone: Facsimile: ( Federal ID No.
BROKER:                                      BROKER:
Coldwelll Banker George. Realty              Landful Investment

Attn:   Alice Chu
Titla: Broker                                Title:
Address: 1611  S. Garfield Avenue            Address: 1168 San Gabriel.Blvd., #J
Alhambra, CA 91801                           Rosemead. CA 91770
Telephone:(626   )  457-2336                 Telephone:(626  )571-1168__________
Facsimile:(626 )    289-7612____________     Facsimile:( 626 ) 571-0873
Email: alicechu@coldwellbanker.com           Email:dennislinl962@yahoo.com

Federal ID No.________________________       Federal ID No.________;_________

NOTE:     These forms are often  modified to meet changing  requirements  of law
          and  industry  needs.  Always  write  or  call to  make  sure  you are
          utilizing  the  most  current  form:   AIR   COMMERCIAL   REAL  ESTATE
          ASSOCIATION, 700 So. Flower Street, Suite 600, Los Angeles, California
          90017. (213)687-8777. Fax No. (213) 687-8616

(C)Copyright  2002 - By AIR  Commercial  Real  Estate  Association.  All  rights
reserved.  No  part  of  these  works  may be  reproduced  in any  form  without
permission in writing.
                  Dated      June  7.   2005
                                 -----------

                  By and Between (Lessor) CENTRAL MATRIX, LLC------------------

                                 (Lessee) RU HUA SONG/TOP GROUP HOLDINGS, INC.

                  Address of Premises: 9611 LAS TUNAS DRIVE, TEMPLE CITY, CA
                                       -------------------------------------

 Paragraph   52

A.  OPTION(S) TO EXTEND:

Lessor hereby grants to Lessee the option to extend the term of this Lease for 2
additional 60 month  period(s)  commencing when the prior term expires upon each
and all of the following terms and conditions:
     (i) In order to  exercise  an option to extend,  Lessee  must give  written
notice of such  election to Lessor and Lessor  must  receive the same at least 4
but not more  than 5  months  prior to the date  that the  option  period  would
commence,  time being of the essence.  If proper notification of the exercise of
an option is not given and/or received,  such option shall automatically expire.
Options (if there are more than one) may only be exercised consecutively.
             (ii) The provisions  of paragraph 39,  including  those relating to
Lessee's Default set forth in  paragraph  39.4 of this Lease, are" conditions of
this Option.
             (iii) Except for the provisions of this Lease granting an option or
options  to extend  the term,  all of the  terms and  conditions  of this  Lease
except where specifically modified by this option shall apply.
             (iv) This Option is personal to the original Lessee,  and cannot be
assigned or  exercised by anyone other than said  original Lessee and only while
the original Lessee is in full possession of the Premises and without the inten-
tion of thereafter assigning or subletting.
             (v) The  monthly rent for each month of the option  period shall be
calculated as follows,  using the method(s) indicated below: (Check Method(s) to
be Used and Fill in Appropriately)[_]     I. Cost of Living Adjustment(s) (COLA)

     a.   On (Fill in COLA Dates):______________________________________________
____________________________________________________________________________ the
Base Rent shall be adjusted by the change, if any, from the Base Month specified
below, in the Consumer Price Index of the Bureau of Labor Statistics of the U.S.
Department of Labor for (select one): [_] CPI W (Urban Wage Earners and Clerical
Workers)   or  [_]  CPI  U  (All   Urban   Consumers),   for   (Fill   in  Urban
Area):__________________________________________________________________     All
Items (1982-1984 = 100), herein referred to as "CPI"
     b. The monthly rent payable in accordance  with  paragraph  A.l.a.  of this
Addendum  shall be calculated  as follows:  the Base Rent set forth in paragraph
1.5 of the attached  Lease,  shall be  multiplied by a fraction the numerator of
which  shall be the CPI of the  calendar  month 2 months  prior to the  month(s)
specified in paragraph  A.l.a.  above  during  which the  adjustment  is to take
effect,  and the  denominator  of which shall be the CPI of the  calendar  month
which is 2 months prior to (select one): [_] the first month of the term of this
Lease as set forth in paragraph  1.3 ("Base  Month") or [_] (Fill in Other "Base
Month"):_________.  The sum so calculated  shall constitute the new monthly rent
hereunder,  but in no event,  shall any such new  monthly  rent be less than the
rent payable for the month immediately preceding the rent adjustment.

<PAGE>

     c. In the  event the  compilation  and/or  publication  of the CPI shall be
transferred to any other governmental department or bureau or agency or shall be
discontinued,  then the index  most  nearly the same as the CPI shall be used to
make  such  calculation.  In the event  that the  Parties  cannot  agree on such
alternative  index,  then the matter  shall be  submitted  for  decision  to the
American  Arbitration  Association  in  accordance  with the then  rules of said
Association  and the  decision  of the  arbitrators  shall be  binding  upon the
parties. The cost of said Arbitration shall be paid equally by the Parties.

[_]  II.   Market Rental Value Adjustments) (MRV)

     a.  On (Fill in MRV Adjustment Date(s))  July   7.  2010.  July   7.   2015
 the Base Rent shall be adjusted to the "Market Rental Value" of the property as
follows:

          1) Four  months  prior to each Market  Rental  Value  Adjustment  Date
 described  above, the Parties shall attempt to agree upon what the new MRV will
 be on the  adjustment  date.  If agreement  cannot be reached,  within 30 days,
 then:

              (a)  Lessor  and  Lessee  shall  immediately  appoint  a  mutually
 acceptable  appraiser  or broker to  establish  the new MRV  within the next 30
 days. Any associated costs will be split equally between the Parties, or

              (b)  Both  Lessor  and  Lessee  shall  each   immediately  make  a
reasonable  determination of the MRV and submit such determination,  in writing,
to arbitration in accordance with the following provisions:

                  (i)  Within 15 days thereafter,  Lessor and Lessee  shall each
select an D appraiser or [_] broker ("Consultant"- check one) of their choice to
act as an arbitrator.  The two arbitrators so appointed shall immediately select
a third mutually acceptable Consultant to act as a third arbitrator.

 Initials:,

                                   Page 1 of 2

<PAGE>

                  (ii) The three arbitrators shall within 30 days of the appoin
-tment of the third  arbitrator  reach a decision  as to what the actual MRV for
the Premises is, and whether  Lessor's or Lessee's  submitted MRV is the closest
thereto.  The decision of a majority of the arbitrators  shall be binding on the
Parties.  The  submitted MRV which is determined to be the closest to the actual
MRV shall thereafter be used by the Parties.

                  (iii) If either of the Parties fails to  appoint an arbitrator
within the specified 15 days,  the  arbitrator  timely  appointed by one of them
shall reach a decision on his or her own, and said decision  shall be binding on
the Parties.

                  (iv) The entire cost  of such arbitration shall be paid by the
party whose  submitted MRV is not selected,  ie. the one that is NOT the closest
to the actual MRV.

          2.  Notwithstanding the foregoing,  the new MRV shall not be less than
the rent payable for the month immediately preceding the rent adjustment.

     b.      Upon the establishment of each New Market Rental Value:

          1.  the new  MRV will  become the new "Base Rent" for the  purpose  of
calculating any further Adjustments, and
          2.  the first month of each  Market Rental Value term shall become the
new "Base Month" for the purpose of calculating any further Adjustments.

[_]   III.  Fixed Rental Adjustments) (FRA)

The Base Rent shall be increased to the following amounts on the dates set forth
below:

     On (Fill in FRA Adjustment Date(s)):       The New Base Rent shall be:

     -----------------------------:--------    $----------------------

     --------------------------------------    $----------------------

     --------------------------------------    $----------------------

B. NOTICE:  Unless specified otherwise herein, notice of any rental adjustments,
other than Fixed Rental Adjustments,  shall be made as specified in paragraph 23
of the Lease.

C.  BROKER'S FEE:

The Brokers shall be paid a Brokerage Fee for each adjustment specified above in
accordance with paragraph 15 of the Lease.

                                                                  Initials:-

                               OPTION(S) TO EXTEND
                                   Paae 2 of 2EXHIBIT 10.2

                         LEASE BETWEEN CASA FLYNN, LLC.

                                      AND

                            TOP GROUP HOLDINGS, INC.

<PAGE>

EXHIBIT 10.2

                                COMMERCIAL LEASE

                                     Between

                                 CASA FLYNN, LLC

                                       And

                             TOP GROUP HOLDINGS INC

                             INDEX TO LEASE CLAUSES

Abandonment, pg. 15
Arbitration, pg 12
Assignment & Subletting, pg 12
Attorney's Fees, pg. 14
Business Hours, pg 3
Cleanliness, pg 15
Condemnation, pg 13
Condition of Premises,  pg 12
Covenants  and Quiet  Enjoyment,  pg. 2
Damage to Exterior of Bldg,  pg .15
Default,  pg 9
Delinquent Payments, pg. 6
Demised Premises,  pg.  2
Entire  Agreement,  pg 17
Entry  by  Lessor,  pg 14
Estoppel Certificate,  pg 16
Failure/Interruption of Service, pg 15
Fictitious Business Name, pg 17
Fire Clause, pg 9
Holding Over, pg 5
Indemnification of Lessor, pg. 17
Insurance & Indemnity, pg 7
Interpretation, pg. 16
Last Month's Rent and Security Deposit, pg 3
Laws & regulations, pg 14
Liens, pg. 15
Notices, pg. 16
Nuisance, pg. 15
Option Annual Rent Adjustment, pg 5
Options, pg. 3
Parties, pg 2
Recordation, pg 14
Re-entry on Default, pg, 11
Removal of Furnishings/Fixtures, p. 16
Rentai Adjustments, pg 3
Rent: Minimum, pg 3
Repairs, pg  12
Sale or Transfer of Premises, pg 15
Sidewalk Obstructions, pg. 6
Signs, pg 5
Subordination, pg. 7
Subrogation Waiver, pg 8
Taxes, pg. 6
Term, pg 3
Use, Permits, Licenses, pg 2
Utilities, pg 17

<PAGE>

                                      LEASE

PARTIES:  This Lease  executed in duplicate and entered into this _______ day of
May, 2005,  between CASA FLYNN, L.LC (a California  Limited Liability  Company);
hereinafter  called "Lessor",  and TOP GROUP HOLDINGS INC.;  hereinafter  called
"Lessee", without regard to number or gender

                                   WITNESSETH

Now, therefore, it is agreed between the parties hereto as follows:

2

          DEMISED PREMISES:  Lessor hereby leases, demises and lets unto Lessee,
          and Lessee hereby  leases,  hires,  and takes from Lessor on the terms
          and conditions hereinafter set forth, those certain premises, together
          with the  appurtenances,  hereinafter  called  the  demised  premises,
          together with the non-exclusive right and license in common with other
          lessees,  lessors  and  occupants  of the demised  premises  and their
          customers,   invitees  and   employees,   to  use  the  common  areas,
          hereinafter defined, situated in the City and County of San Francisco,
          State of California, and commonly known as:

                               1719 Powell Street

          and further described as follows:

          The demised premises  consist of  approximately  4,100 rentable square
          feet on the ground floor and is located in the building at 1717 Poweil
          Street,  known  as  Block  #101,  Lot 5, on the San  Francisco  County
          Assessor's  records,  which consists generally of a commercial  office
          building For the purposes of this Lease and for  providing a basis for
          computations  as may be required  under the terms herein,  the demised
          premises shall be deemed to be approximately  4,000 usable square feet
          subject  to  actual   measurement  under  BOMA  standards  for  office
          buildings;  which  represents  44% of the total square footage for the
          building

3         COVENANTS  AND QUIET  ENJOYMENT:  Said  letting and hiring is upon and
          subject to the terms,  covenants and conditions  herein set forth As a
          material part of the consideration for this Lease, Lessee covenants to
          keep  and  perform  each  and all of the  said  terms,  covenants  and
          conditions  by it to be kept and performed and that this Lease is made
          upon the  condition of such  performance  and Lessor  covenants  that,
          provided  Lessee keeps and  performs all of the said terms,  covenants
          and conditions, including the payment of rental, hereinafter peaceably
          and quietly have,  hold and enjoy  premises  without  interference  by
          Lessor.

4.        USE, PERMITS,  LICENSES:  Lessee agrees to use and occupy the premises
          during the term hereof for the purpose of general  retail use or other
          permitted  use,  exclusive  of any food  service  use and for no other
          purpose  whatsoever  without the written consent of Lessor which shall
          not be  unreasonably  withheld  Lessee  shall not use or  permit  said
          premises,  or any other part  thereof to be used,  for any  purpose or
          purposes  other than the purpose or purposes  for which said  premises
          are hereby leased;

<PAGE>

          and no use shall be made of said  premises,  or acts done,  which will
          increase the existing rate of insurance upon the building in which the
          premises may be located over the standard rate of insurance prevailing
          in the area in which the premises are located, or cause a cancellation
          of any  insurance  policy  covering said building or any part thereof,
          nor shall Lessee sell, or permit to be kept, used or sold, in or about
          the premises any article  which may be prohibited by the standard form
          of fire  insurance  policies as the same may provide from time to time
          Lessee  shall,  at its sole cost and  expense  comply with any and all
          requirements,   pertaining   to  said   premises,   by  any  insurance
          organization  or company  necessary for the  maintenance of reasonable
          fire and  public  liability  insurance,  covering  said  building  and
          appurtenances.

5         BUSINESS  HOURS:  Lessee may  continuously,  during  the  entire  term
          hereof,  conduct  and carry on Lessee's  aforesaid  use in the demised
          premises and may keep said premises  open for such use thereon  during
          each and any day for such number of hours each day as is customary for
          Lessee's use

6         TERM; The term of this Lease shall be three (3) years, commencing July
          1, 2005 (or  sooner  based on  completion  of tenant  improvements  by
          Lessor) and ending in thirty-six (36) months.

7.        LAST (FUTURE) MONTH'S RENT AND SECURITY DEPOSIT:  Lessor  acknowledges
          receipt hereof of the twenty-fifth  month's rent (July, 2007) of Eight
          Thousand  Two Hundred  Dollars  ($8,200,00)  Lessor also  acknowledges
          receipt of Sixteen  Thousand  Four  Hundred  Dollars  ($16,400  00) as
          security deposit Said sums shall be held by Lessor as security for the
          faithful  performance  by  Lessee  of all the  terms,  covenants,  and
          conditions of this Lease to be kept and performed by Lessee during the
          term hereof

8         RENT:  MINIMUM:  Lessee  agrees to pay minimum  monthly  rental on the
          first day of each  calendar  month  throughout  the first  year of the
          initial term without  deduction or offset as foilows:  Eight  Thousand
          Two Hundred Dollars ($8,200.00)  industrial gross Said amount shall be
          made  payable to "CASA  FLYNN" and  delivered  to 1717 Powell  Street,
          #300,  San Francisco,  CA 94133 The first month's rent of $8,200,  the
          security  deposit  and future  month's  rent are to be paid upon lease
          execution

9         RENTAL ADJUSTMENTS:  The minimum monthly rent shall be remain as Eight
          Thousand Two Hundred  Dollars  ($8,200 00) for the initial term of the
          lease

10.       OPTION:  Lessor  hereby grants to Lessee the option to extend the term
          of this  Lease  for one two (2) year term  beginning  July 1, 2008 and
          ending June 30, 2010,  by giving Lessor  written  notice no later than
          six months prior to the expiration of the previous term,  specifically
          December 1, 2007 Said notice  shall be of Lessee's  election to extend
          the  term of  this  Lease  (the  "Option  Notice")  on the  terms  and
          conditions herein specified,  provided that, at the time of giving the
          Option Notice, if Lessee is in default, the Option Notice shall not be
          effective  and the  extending  term shall not  commence and this Lease
          shall expire at the end of the initial  term The minimum  monthly rent
          for the first year of the option period shall  be the then  prevailing
          market  rent  for  similar  commercial  property  located  in the same
          neighborhood area of San Francisco.  Upon Lessor's receipt of Lessee's

<PAGE>

          Option Notice,  Lessor shall provide Lessee with Lessor's  estimate of
          the fair market rental value along with  supporting  market data after
          which Lessee and Lessor shall  begin good faith  negotiations  for the
          new minimum  monthly rental rate If Lessee and Lessor have not reached
          an  agreement  as to the  fair  market  rental  value  of the  demised
          premises  within the first sixty (60) days  immediately  following the
          date of the Option  Notice,  either party may, upon written  notice to
          the  other,  force the  matter to be  determined  in  accordance  with
          subsequent  provisions of this Lease section.  In any event, if Lessor
          and  Lessee  have  been  unable to reach  agreement  by a date that is
          ninety (90) days prior to the  commencement  of this Option Term, then
          the  fair  market  rental  value  of the  Demised  Premises  shall  be
          automatically determined as follows:

          Lessor and Lessee shall each appoint an  appraiser,  which  appraisers
          must  have at  least  five  years  of  current  experience  appraising
          commercial   real  property  in  the  County  of  San  Francisco  Said
          appraisers,  to be  qualified,  shall  hold the  highest  professional
          designation  awarded  by one or more of the  following  organizations:
          A1REA,  SREA or such successor  organization as may then be preeminent
          in the field of real estate  appraisal The appraisers  appointed shall
          each  independently  prepare their  appraisals in accordance  with the
          Code of Ethics of the American  Institute of Real Estate Appraisers or
          such successor organization as may then be preeminent

          The  value  to be  determined  by the  appraisers  shall  be the  then
          applicable  fair market  rental value of the Demised  Premises,  which
          definition  shall be "the probable  rental  expectancy if the property
          were available for renting at the time of its  estimation;  the rental
          warranted  to be paid on the open real estate  market based on current
          rentals  being  paid  for  comparable  space,  as  distinguished  from
          contract rent under an existing  lease".  In  considering  fair market
          rental value, the appraisers shall base their  conclusions on the then
          highest  and best use of the Demised  Premises,  shall not be bound by
          the use to which the Lessee has put the property,  and shall  consider
          the age and  condition of the property  Each  appraiser's  estimate of
          fair market rental value shall  specifically  take into  consideration
          all non-cash items in its comparable  rental  properties  such as free
          rent and tenant improvements  allowances In concluding their estimates
          of fair market  rental  value,  the  appraisers  shall deduct from the
          estimates of the fair market rental value of the Demised Premises, any
          rental value associated with Lessee's improvements, to the extent that
          said  improvements were actually made by and at the expense of Lessee.
          Nothing  herein  contained  shall be construed to convey any credit to
          the Lessee for routine maintenance work that the Lessee is required to
          perform under the terms of this Lease Finally,  in concluding the fair
          market rental values,  the appraisers shall assume that ail conditions
          of this Lease would be imposed upon the renter if the Demised Premises
          were  offered  in the  market  place on the  valuation  date  with the
          exception of the current rent then provided for in this Lease

          Within  forty-five  (45) days of their  appointments,  the  appraisers
          shall each  complete a written,  fully  documented  report  indicating
          their  independent  conclusions as to the fair market rental value The
          appraisers shall submit, simultaneously to each party to this Lease, a
          complete  copy of their  reports.  If the two  opinions of fair market
          rental value are within ten (10%) percent of each other, they shall be
          averaged and that average shall be the fair market rental value of the
          Demised  Premises,  which shall be the new minimum monthly rent during
          the first year of the Option  Term.  If the  opinions  of fair  market
          rental value are not within the said ten (10%)  percent and the Lessor
          and Lessee are unable to agree on a minimum  rent at that point,  then
          the two appraisers shall meet for a period not to exceed five (5) days
          in an attempt to reconcile any  differences  between their  respective
          reports in order to determine whether such reconciliation  would bring
          the  value  conclusion   within  said  ten  (10%)  percent  spread  If
          reconciliation results in bringing the value conclusion within the ten
          (10%)  percent  above  described,  then the average  shall be the fair
          market rental value of the Demised Premises

          However,  if after said five (5) days, the two appraisers are not able
          to reconcile their  differences,  Lessor and Lessee shall,  within ten
          (10) days, refer this determination of the fair market rental value of
          the  Demised   Premises  to  the  American   Arbitration   Association
          (hereinafter: the "AAA") at its San Francisco California Office (or an
          equally preeminent successor  organization) for binding arbitration in
          accordance with the Commercial  Arbitration  Rules of that Association
          The said  arbitration  shall be  conducted  by three  (3)  arbitrators
          (hereinafter "the arbitration  panel") appointed by the AAA, each with
          qualifications and experience at least equal to that of the appraisers
          heretofore  appointed  by Lessor  and  Lessee  The  arbitration  panel
          appointed by the AAA shall not be required to make any

<PAGE>

          independent  appraisal  study of the  Demised  Premises  Rather,  said
          arbitration  panel shall  convene  such  hearings as are  necessary to
          reach a binding  decision  as to the fair market  rental  value of the
          Demised  Premises  Each of the  parties,  Lessor and Lessee,  shall be
          entitled  to  representation  at the  hearings  and  further  shall be
          entitled to present  witnesses  in addition to the two (2)  appraisers
          originally  appointed The arbitration panel appointed by the AAA shall
          be the final authority on procedural rules and shall cause a final and
          binding resolution of the matter to be rendered as quickly as possible
          after their  appointment if the decision of the  arbitration  panel is
          delayed  beyond the  commencement  date of this Option Term,  any fair
          market  rental  value award shall be  retroactive  to that date If any
          delay is caused by any  unreasonable  action on the part of one party,
          the other party (Lessor or Lessee) may petition the arbitration  panel
          for an interest penalty equal to the six-month  Treasury Bill rate and
          the arbitration panel shall be the sole authority as to whether or not
          such interest payment should be made.

          Each  party  (Lessor  and  Lessee)  shall  pay  the  cost  of its  own
          appraiser,  its own attorneys and other witnesses.  Both parties shall
          pay the costs of the AAA and any of the  arbitration  panel's  hearing
          costs or expenses jointly

11.       OPTION RENTAL  ADJUSTMENTS:  COST OF LiVING INDEX: The minimum monthly
          rent of the option  period shall  remain the initial rent  adjusted to
          market value for the two year option term

12        HOLDING  OVER:  Any holding over after the  expiration  of the term of
          this Lease, with the written consent of the Lessor, shall be construed
          to be a tenancy  from  month to  month,  and shall be on the terms and
          conditions  herein specified,  so far as applicable,  with the minimum
          rent to be  determined  by  Lessor In no event  shall the rent  exceed
          (100%) percent of the previous month's rent

13        SIGNS: Lessee shall not place or permit to be placed any sign, marquee
          awning,  decoration or attachment on or to the roof,  front,  windows,
          doors or  exterior  walls of the  Demised  Premises  without the prior
          written consent of Lessor Lessor may,  without  liability,  enter upon
          the premises and remove any such sign,  marquee awning,  decoration or
          attachment affixed in violation of this paragraph Lessee agrees to pay
          the cost of removal thereof Lessor may establish rules and regulations
          and  Lessee  agrees  to  abide  thereby  except  Lessee,  at its  sole
          obligation  and at its sole expense,  shall obtain the approval of any
          city or county  agency  prior to the  installation  of said  signs and
          decorations

<PAGE>

14        DELINQUENT  PAYMENTS:  Lessee hereby acknowledges that late payment by
          Lessee to Lessor of rent or other sums owing to Lessor under the terms
          and   conditions   of  this  Lease  will  cause  to  incur  costs  not
          contemplated  in this Lease  Therefore,  Lessor  and  Lessee  agree as
          follows:

          (a)  SERVICE  CHARGE:  That  it  would  be  impractical  or  extremely
               difficult to fix Lessor's  actual damages which may include,  but
               are not  limited  to late  penalties,  processing  or  accounting
               charges  or other  charges  which  may be  imposed  on  Lessor by
               premises  Accordingly,  if any  installment of rent or other sums
               owing  Lessor,  which may include late  charges,  due from Lessee
               under the terms of the Lease, which are not received by Lessor or
               Lessor's  agent  within five (5) days after such amount  shall be
               due, or  postmark-dated  by the US. Postal Service (not an office
               postage  meter)  within five (5) days after such amount  shall be
               due,  Lessee  shall pay to Lessor,  as  additional  rent,  a late
               charge  of five  (5%)  percent  of any  such  late  payments  (b)
               INTEREST ON LATE PAYMENTS:  Lessee shall also pay interest on the
               delinquent amounts at the lesser of the maximum rate permitted by
               law, if any, or ten (10%)  percent per annum from the date due to
               the date paid (c) ADDITIONAL QUALIFYING LATE PAYMENTS: Any moneys
               tendered as rent or related obligations to Lessor by Lessee under
               the terms and  conditions  of this Lease in any form that for any
               reason other than Lessor's error or Lessor's  bank's error,  that
               does not clear or  credit  to  Lessor's  bank  account,  shall be
               deemed "delinquent payments" and the full provisions of Paragraph
               13(a) and (b) above shall apply

15        SIDEWALK  OBSTRUCTIONS:   Lessee  shall  not  obstruct  the  sidewalks
          adjacent to the demised  premises or any portion of the Common Area by
          placing any item thereon

16.       TAXES:  Lessee shall pay before  delinquency  all taxes,  assessments,
          license fees,  and other charges that are levied and assessed  against
          Lessee's personal  property  installed or located in or on the demised
          premises and that become  payable during the term On demand by Lessor,
          Lessee  shall  furnish  Lessor  with  satisfactory  evidence  of these
          payments.

<PAGE>

17        SUBORDINATION:  Lessee  accepts this Lease subject and  subordinate to
          any mortgage,  deed of trust or other lien presently existing upon the
          demised  premises or the Property as a whole,  or  hereinafter  placed
          thereon,  and to any renewals and  extensions  thereof,  provided such
          subordination shall be upon the express condition that the Lease shall
          be recognized by the mortgagee in a document  suitable for  recording,
          and that the  rights of the  Lessee  shall  remain in force and effect
          during  the term of this  Lease so long as Lessee  shall  continue  to
          perform  all of the  covenants  and  conditions  of this Lease  Lessee
          agrees  that any such  mortgagee  shall  have the right at any time to
          subordinate  this  Lease to any such  mortgage,  deed of trust or lien
          placed upon the Property with Lessor's consent.  Lessee further agrees
          upon   demand  by  Lessor  to   execute   such   further   instruments
          subordinating  this  Lease as Lessor may  request.

18  INSURANCE AND INDEMNITY:

          (a)  Notwithstanding  anything contained in Paragraph above,  entitled
               "USE,"  Lessee at its cost shall  maintain  public  liability and
               property  insurance,  with  liability  limits  of not  less  than
               $500,000  00 per  person  and  $500,000.00  per  occurrence,  and
               property   damage  limits  of  not  less  than   $500,000.00  per
               occurrence,  insuring  against  all  liability  of Lessee and its
               authorized  representatives arising out of and in connection with
               Lessee's use or occupancy of the premises and adjacent areas

          (b)  Both parties  shall be named as  co-insured  and Lessee's  policy
               shall  contain an  endorsement  requiring at least ten (10) days'
               written notice from the insurance  company to both parties before
               cancellation  or  change  of  coverage,  scope or  amount  of any
               policy,  or due to lack of payment of  premiums by Lessee

          (c)  public  liability  and  property  damage  insurance  shall insure
               performance  by Lessee of the  indemnity  provisions of the above
               paragraphs and shall be on a comprehensive general liability form
               In addition, Lessee shall carry employer's liability and workers'
               compensation  insurance, as required by applicable law

          (d)  Lessee  shall at all  times  during  the term and at its cost and
               expense,  maintain in effect  policies of insurance  covering its
               fixtures and  equipment  located on the premises in an amount not
               less than one hundred  percent (100%) of their actual cash value,
               and providing  protection  against any peril included  within the
               classification  "Fire  and  Extended  Coverage",   together  with
               insurance  against  sprinkler  damage,  vandalism  and  malicious
               mischief  The proceeds of such  insurance,  so long as this Lease
               remains  in  effect,  shall  be used to  repair  or  replace  the
               fixtures and equipment insured

          (e)  Lessor  shall at all times  during the term  maintain in effect a
               policy or policies of  insurance  covering  the  premises and the
               Property up to eighty percent (80%) of their current  replacement
               value, providing protection against any peril included within the
               classifications  "Fire  and  Extended  Coverage",  together  with
               insurance  against  sprinkler  damage,  vandalism  and  malicious
               mischief

          (f)  All  insurance  required to be carried by Lessee under this Lease
               shall:  (I) be issued by  insurance  companies  authorized  to do
               business in the State of California with financial  ratings of at
               least  "A + 10" as rated in the most  recent  edition  of  Best's
               Insurance  Reports;  and (ii) be issued as a primary policy;  and
               (iii)  be on forms  and  with  loss  payable  clauses  reasonably
               satisfactory to Lessor

<PAGE>

          (g)  Each  policy,  or a  certificate  of the  policy,  together  with
               evidence  of  premiums,  shall be  deposited  with  Lessor at the
               commencement  of the term and on  renewal  of the policy not less
               than twenty (20) days before expiration of the term of the policy

          (h)  The parties release each other, and their  respective  authorized
               representatives,  from any  claims for damage to any person or to
               the premises,  the Property and the fixtures,  personal property,
               Lessee's  improvements and alterations of either Lessor or Lessee
               in or on the  premises  and the  Property,  that are caused by or
               result from risks insured  against  under any insurance  policies
               carried  by the  parties  and in force at the time of the  damage
               Each party shall cause each  insurance  policy  obtained by it to
               provide that the insurance  company  waives all right of recovery
               by way of subrogation against either party in connection with any
               damage covered by any policy Neither party shall be liable to the
               other for any damage  caused by fire or any of the risks  insured
               against under any insurance policy required by this Lease, If any
               insurance policy cannot be obtained with a waiver of subrogation,
               the party  undertaking  to obtain the insurance  shall notify the
               other  party of this fact The other  party shall have a period of
               ten (10) days after  receiving  the  notice  whether to place the
               insurance with a company that is reasonably  satisfactory  to the
               other  party and that will carry the  insurance  with a waiver of
               subrogation,  or to agree to pay the  additional  premium if such
               policy  is  obtained  or the  party  in whose  favor a waiver  of
               subrogation  is  desired  refuses to pay the  additional  premium
               charged,  the other party is relieved of the obligation to obtain
               a waiver of  subrogation  rights with  respect to the  particular
               insurance involved

          (i)  Lessee shall  indemnify and hold harmless Lessor from and against
               any  loss,  liability  or  expense  for any  damage  or injury to
               persons or  property  in or about the  Property  which may result
               from the use or occupation of the premises by Lessee, its agents,
               employees  or  invitees;   provided,   however,   that   Lessee's
               obligation  to pay damages to Lessor  shall be limited to the sum
               that exceeds the amount of insurance  proceeds,  if any, received
               by Lessor

          (j)  Lessor  shall not be  liable  for  injury or damage  which may be
               sustained by the person, goods, wares, merchandise to property of
               Lessee, its employees,  invitees or customers or any other person
               in or about the premises  caused or resulting  from fire,  steam,
               electricity,  gas, water or rain,  which may leak or flow from or
               into  any  part  of the  premises,  or  from  breakage,  leakage,
               obstruction  or other  defects of the pipes,  sprinklers,  wires,
               appliances,  plumbing,  air conditioning or lighting  fixtures of
               the  premises,   whether  the  damage  or  injury   results  from
               conditions  arising upon the  premises or upon other  portions of
               the  Property,  or from other  sources  unless  such  damages are
               proximatety  caused by Lessor's sole negligence  Lessor shall not
               be liable for any damages  arising  from any act or neglect  from
               any other tenant of the Property

19        SUBROGATION   WAIVER:   Anything   in  this  Lease  to  the   contrary
          notwithstanding,  Lessor and Lessee each waive all rights of recovery,
          claim,  action  or cause of  action  against  the  other,  its  agents
          {including partners, both general and limited),  officers,  directors,
          shareholders  or  employees,  for any loss or damage that may occur to
          the demised premises,  or any improvements thereto, or the Property or
          any personal  property of such party  therein,  by reason of fire, the
          elements or any other cause which could be insured  against  under the
          terms of  standard  fire and  extended  coverage  insurance  policies,
          regardless of cause or origin, including negligence of the other party
          hereto,  its agents,  officers or employees;  and each party covenants
          that no insurer shall hold any right of subrogation against such other
          party.  Lessee shall advise  insurers of the foregoing and such waiver
          shall be a part of each policy maintained by Lessee,  which applies to
          the demised  premises,  any part of the  Property or Lessee's  use and
          occupancy of any part thereof

<PAGE>

20        FIRE  CLAUSE:  In the event of a partial  destruction  of the  demised
          premises as hereinafter  defined occurring at least one (1) year prior
          to the end of the term for any cause  insured under a standard form of
          fire and extended  coverage policy,  Lessor shall forthwith repair the
          same,  provided  such  repairs can be made  within one hundred  twenty
          (120) days from date of the destruction under the then applicable laws
          and regulations of federal,  state,  county and municipal  authorities
          and in the light of the  extent of  materials  and  supplies  But such
          partial  destruction shall in no way annul or void this Lease,  except
          that Lessee  shall be entitled to a  proportionate  reduction  of rent
          while such repairs are being made, such proportionate  reduction to be
          used based upon the extent to which the making of such  repairs  shall
          interfere  with the  business  carried  on by  Lessee  in the  demised
          premises.  If Lessor  need not make  such  repairs,  but  nevertheless
          elects  within a  reasonable  time to make the same,  this Lease shall
          continue   in  full   force  and   effect   and  the  rent   shall  be
          proportionately  reduced as aforesaid  in this  paragraph In the event
          Lessor does not so elect to make such repairs,  or such repairs cannot
          be made, this Lease may be terminated at the option of either party In
          respect to any partial destruction which Lessor is obligated to repair
          or may  elect  to  repair  under  the  terms  of this  paragraph,  the
          provisions of Section 1932,  (2), and Section 1933,  (4), of the Civil
          Code of the State of California are waived by Lessee

          In the event that the  building in which the demised  premises  may be
          situated be destroyed  to the extent of more than fifty (50%)  percent
          of the floor area of said buildings in which the demised  premises may
          be situated,  or if the estimated  cost of repair,  less any insurance
          benefits  receivable  by Lessor,  determined  in good faith by Lessor,
          exceed  ten  (10%)  percent  of  the  then  replacement  value  of the
          premises,  Lessor  may elect to  terminate  this  Lease,  whether  the
          demised premises be injured or not.

          A total  destruction  of the Property or building in which the demised
          premises may be situated shall terminate this Lease

          Anything in these "FIRE"  paragraphs above to the contrary,  if at the
          time of any such  damage,  the amount of minimum  rent  remaining  due
          hereunder  for the balance of the term hereof is less than the cost of
          repairing such damage,  then this Lease may at the option of Lessor be
          canceled by notice in writing to Lessee  within ten (10) days from the
          date of such damage

21        DEFAULT:  The  occurrence of any of the following  shall  constitute a
          default by Lessee:

          (a)  Failure to pay rent, or other  obligations  defined herein,  when
               due, if the failure  continues  for five (5) days after notice to
               pay rent or quit has been given to Lessee

          (b)  Abandonment  or  vacation of the  premises  Failure to occupy and
               operate the  premises for twenty (20)  consecutive  days shall be
               deemed an abandonment and vacation

          (c)  Breach or failure to perform any other provisions of the Lease if
               the breach or failure to perform is not cured within  twenty (20)
               days after notice has been given to Lessee If the default  cannot
               be reasonably cured within twenty (20) days,  Lessee shall not be
               in default of this Lease if Lessee  commences to cure the default
               within the twenty  (20) day period  diligently  and in good faith
               continues to cure the default

          (d)  The making by Lessee of any general assignment for the benefit of
               creditors;  the filing by or against Lessee of a petition to have
               it adjudged a bankrupt or for reorganization or arrangement under
               any law relating to bankruptcy  (other than involuntary  petition
               dismissed  within thirty (30) days;  levy of a writ of attachment
               or  execution on this Lease  (unless the levy is released  within
               tend (10) days; or  appointment  of a receiver with  authority to
               take  possession of the premises  (unless the receiver is removed
               within thirty (30) days)

<PAGE>

               Notice given under this section shall specify the alleged default
               and the applicable Lease provisions, and shall demand that Lessee
               perform  the  provision  of this Lease or pay the rent that is in
               arrears,  as the case may be,  within  the  applicable  period of
               time,  or quit the  premises  No such  notice  shall be  deemed a
               forfeiture of this Lease unless Lessor so elects in the notice

          Lessor shall have the following  remedies if Lessee  commits a default
          These remedies shall not be exclusive; they are cumulative in addition
          to any remedies now or later allowed by law, and Lessor may pursue any
          or all of them, separately or at the same time:

          (a)  Lessor can continue this Lease in fuli force and effect, and this
               Lease  will  continue  in  effect  as long  as  Lessor  does  not
               terminate Lessee's right to possession, and Lessor shall have the
               right to collect  rent when due  During  the period  Lessee is in
               default,  Lessor can enter the premises  and re-let them,  or any
               part of them, to third parties for Lessee's  account Lessee shall
               be liable  immediately  to Lessor for all costs Lessor  incurs in
               re-letting the premises,  including without limitation,  brokers'
               commissions,  expenses of remodeling the premises required by the
               re-letting  , and  like  costs  Re-letting  can  be for a  period
               shorter or longer than the  remaining  term of this Lease  Lessee
               shall pay to Lessor  the rent due under  this  Lease on the dates
               the  rent  is  due,  less  the  rent  Lessor  receives  from  any
               re-letting No act by Lessor  allowed by this  subparagraph  shall
               terminate  this Lease unless Lessor  notifies  Lessee that Lessor
               elects to terminate this Lease. After Lessee's default and for as
               long as Lessor does not terminate Lessee's right to possession of
               the premises,  if Lessee  obtains  Lessor's  consent Lessee shall
               have the right to assign or sublet its  interest  in this  Lease,
               but Lessee shall not be released from liability

          (b)  Lessor can terminate Lessee's right to possession of the premises
               at any time No act by Lessor  other than giving  notice to Lessee
               shall terminate this Lease Acts of maintenance, efforts to re-let
               the  premises  or  the  appointment  of a  receiver  on  Lessor's
               initiative to protect  Lessor's  interest  under this Lease shall
               not  constitute a termination  of Lessee's right to possession On
               termination, Lessor has the right to recover from Lessee:

               (i)   the worth at the time of the award of the unpaid  rent that
                     had been earned at the time of termination of this Lease;

               (ii)  the worth at the time of the  award of the  amount by which
                     the unpaid rent that would have been  earned after the date
                     of termination of the Lease until the time of award exceeds
                     the amount of the loss of rent that Lessee proves could
                     have been reasonably avoided;

               (iii) the  worth at the time of the award of the  amount by which
                     the unpaid  rent for the balance of the term after the time
                     of award exceeds the amount of the loss of rent that Lessee
                     proves could have been reasonably avoided; and

               (iv) any other  amount,  and court costs  necessary to compensate
                    Lessor  for all  detriment  proximately  caused by  Lessee's
                    default

"The  worth,  at the  time  of the  award",  as  used  in (i)  and  (ii) of this
subparagraph,  is to be  computed  by  allowing  interest  at the rate of twelve
percent (12%) per annum "The worth, at the time of the award," as referred to in
(iii) of this  subparagraph,  is to be computed by discounting the amount at the
discount  rate of the Federal  Reserve Bank of San  Francisco at the time of the
award, plus one percent (1%).

If Lessee is in default  of this  Lease,  Lessor  shall have the right to have a
receiver  appointed to collect rent and conduct  Lessee's  business  Neither the
filing of a  petition  for the  appointment  of a receiver  nor the  appointment
itself shall constitute an election by Lessor to terminate this Lease

<PAGE>

Lessor,  at any time after  Lessee  commits a default,  can cure the  default at
Lessee's cost

For the purposes of this  paragraph,  the rent due for any calendar  month after
entry by  Lessor  following  Lessee's  default,  whether  or not  this  Lease is
terminated,  shall be deemed  to be the  average  monthly  rent,  including  any
percentage rent and additional rent applicable, which shall have been payable by
Lessee prior to Lessor's entry.

Lessor  shall be in default of this Lease if it fails or refuses to perform  any
provision  of this Lease that it is  obligated  to  perform  and the  failure to
perform is not cured within thirty (30) days after written notice of the default
has been given by Lessee to Lessor if the  default  cannot  reasonably  be cured
within thirty (30) days,  Lessor shall not be in default of this Lease if Lessor
commences to cure the default  within the thirty (30) day period and  diligently
and in good faith continues to cure the default Lessee, at any time after Lessor
commits a default,  can cure the default at Lessor's cost If Lessee at any time,
by reason of Lessor's  default,  pays any sum or does any act that  requires the
payment of any sum, the sum paid by Lessee shall be due immediately  from Lessor
to Lessee at the time the sum is paid,  and if paid at a later  date  shall bear
interest  at the rate of ten  percent  (10%) per annum  from the date the sum is
paid by Lessee until Lessee is reimbursed by Lessor. Lessor shall in addition be
liable  to Lessee  for any and all  damages  sustained  by Lessee as a result of
Lessor's  default;  but Lessee  shall have no right to  terminate  this Lease by
reason of Lessor's default except as otherwise provided in this Lease.

22        RE-ENTRY  ON  DEFAULT:  In the event of any  breach  of this  Lease by
          Lessee,  the  Lessor,  in  addition  to any other  rights or  remedies
          available,  shall have the  immediate  right to re-enter said premises
          and to remove all persons and property  there from,  any such property
          to be removed and stored in a public  warehouse  or  elsewhere  at the
          cost of and for the account of Lessee  Should Lessor elect to re-enter
          the demised premises or should possession thereof be taken pursuant to
          legal  proceedings  or  otherwise,  Lessor may either  terminate  this
          Lease,  re-let the demised  premises or any part thereof for such term
          or terms  (which may be for a term  extending  beyond the term of this
          Lease)  at such  rental  or  rentals  and upon  such  other  terms and
          conditions as Lessor in his sole discretion shall determine,  with the
          right to make alterations and repairs to said premises In the event of
          any such  re-letting,

          (a)  Lessee shall  immediately pay to Lessor any rent then accrued and
               unpaid, the costs and expenses of such re-letting and alterations
               and repairs,  and the amount,  if any, by which the rent reserved
               in this Lease for the period of such  re-letting up to the end of
               the term of this Lease shall exceed the amount  agreed to be paid
               as rent for the demised premises for such period; or,

          (b)  at the  option of  Lessor,  rents  received  by Lessor  from such
               re-letting  shall  be  applied:  first,  to  the  payment  of any
               indebtedness,  other  than for  future  rent due  hereunder  from
               Lessee  to  Lessor;  second,  to the  payment  of any  costs  and
               expenses of such re-letting and of such  alterations and repairs;
               third, to the payment of rent due and unpaid  hereunder,  and the
               residue,  if any,  shall be held by Lessor and applied in payment
               of future rent as the same may become due and payable hereunder

          If  Lessee  has been  credited  with any rent to be  received  by such
          re-letting  under option (a), and such rent shall not be promptly paid
          to Lessor by the new tenant,  or if such  rentals  received  from such
          re-letting  under  option  (b),  during any month less than that to be
          paid during that month by Lessee hereunder,  Lessee shall pay any such
          deficiency  to Lessor Such  deficiency  shall be  calculated  and paid
          monthly No re-entry  or taking  possession  of the  premises by Lessor
          shall be  construed  as an election  to  terminate  this Lease  unless
          written  notice of such intention is given Lessee or unless a court of
          competent jurisdiction thereof decrees termination Notwithstanding any
          such re-letting without termination, Lessor may at any time thereafter
          during the term of this Lease elect to terminate the same by reason of
          such  previous  breach.  In the event  that  Lessor  shall at any time
          terminate  this  Lease by reason of breach  thereof  by  Lessee,  then
          Lessor, in addition to any other

<PAGE>

          remedy he may have,  may recover  from Lessee any damages  incurred by
          reason of such breach including, without being limited to, the cost of
          recovering  the premises,  and the then excess,  if any, of rental due
          pursuant  to the  provisions  of this Lease for the  remainder  of the
          stated term over the then reasonable  rental value of the premises for
          the   remainder  of  the  stated  term,   which  amount  shall  become
          immediately due and payable by Lessee to Lessor

23        CONDITION OF PREMISES: The demised premised are to be delivered to the
          Lessee by Lessor in an "as is"  condition,  except  that Lessor at its
          sole expense  shall  deliver up the premises  with the roof,  exterior
          walls and  structural  elements  and  supports in good  condition  and
          repair.  Lessee may at its sole cost and expense remodel the premises;
          construct alterations,  modifications and improvements on said demised
          premises  to  improve  them for  occupancy  The  Lessee  shall make no
          alterations or improvements without Lessor's prior written approval of
          the plans and specifications  which approval shall not be unreasonably
          withheld   Notwithstanding,   anything   contained   in   "Removal  of
          Furnishings,  Fixtures and Equipment"  paragraph,  by entry hereunder,
          Lessee  accepts  the  premises  as  described  in  "Demised  Premises"
          paragraph  and  agrees  on  the  last  day of  said  term,  or  sooner
          termination of this Lease, to surrender unto Lessor said premises with
          said  appurtenances  in the same  condition  as when  received,  or as
          altered  with  Lessor's  written  consent,  reasonable  use  and  wear
          thereof, and damage by fire, acts of God, or by the elements excepted,
          and to remove all of Lessee's signs from said premises

          Lessor shall remove interior walls and repair skylight as set forth in
          the diagram labeled Exhibit A, attached herewith

24        REPAIRS:  Lessee shall, at its sole cost, keep and maintain (including
          replacements if necessary) its demised premises and  appurtenances and
          every part thereof (excepting  exterior walls,  roofs, and sewer lines
          outside  the  premises  which  Lessor  agrees  to  repair),  including
          heating,  ventilation and air conditioning system, glazing, locks, and
          all sewer drains and traps clear and free of stoppage  within Lessee's
          space, and the interior of the premises,  in clean,  good and sanitary
          order, condition and repair, hereby waiving all rights to make repairs
          or replacements at the expense of Lessor

25        ARBITRATION: The parties agree that, in the event of a dispute between
          them  concerning  the terms and  conditions  of the  lease,  including
          covenants, obligations, rights and amounts due, they shall submit such
          dispute  for  arbitration  under  Commercial  Rules  to  the  American
          Arbitration  Association through its office nearest the Property. Such
          arbitration  decision  shall provide for  consideration  and awards of
          costs,  expenses of arbitration  and fees,  reasonable  attorney fees,
          consulting  fees,  expert  witness fees and all other  expenses of any
          kind or nature  involved  in the  arbitration  process in favor of the
          prevailing  party  Such  consideration  and  awards  may be reduced to
          judgment in any court of  competent  jurisdiction

26        ASSIGNMENT AND  SUBLETTING:  No interest of Lessee in this Lease shall
          be assignable by operation of law, (including, without limitation, the
          transfer  of this  Lease by  testacy or  intestacy)  Lessee  shall not
          voluntarily  assign,  transfer,  mortgage or otherwise encumber all or
          any part of Lessee's  interest in this Lease or in the  premises;  and
          any  attempted   assignment,   transfer,   mortgage,   encumbrance  or
          subletting   without  written  consent  of  Lessor  Lessor  shall  not
          unreasonably  withhold or delay its consent Lessor's consent shall not
          be required for (and lessor shall not be entitled to any consideration
          in connection  with) an assignment to Lessee's  parent,  subsidiary or
          affiliate  (or  similarly  related  entities)  for  an  assignment  in
          connection with merger,  acquisition,  reorganization or consolidation
          or  in  connection   with  sales  of  Lessee's  (or  its  parent's  or
          affiliate's) corporate stock or assets

<PAGE>

          No subletting or  assignment,  even with the consent of Lessor,  shall
          relieve Lessee of its obligations to be performed by Lessee under this
          Lease The acceptance of rent by Lessor from any other person shall not
          be deemed to be a waiver by Lessor of any  provision  of this Lease or
          consent to any assignment or subletting  Each subletting or assignment
          to which Lessor has consented  shall be by an instrument in writing in
          form satisfactory to Lessor, and shall be executed by the sublessor or
          assignor  and by the  sublessee or assignee in each  instance,  as the
          case may be, and each sublessee or assignee shall agree in writing for
          the  benefit  of Lessor to assume,  to be bound by and to perform  the
          terms,  covenants,  and conditions of this Lease, to be done, kept and
          performed  by Lessee.  One executed  copy of such  written  instrument
          shall be delivered  to Lessor  Lessee  agrees to reimburse  Lessor for
          Lessor's reasonable  attorney's fees and such other reasonable charges
          which  Lessor  incurs or causes to be  incurred  in  conjunction  with
          processing and documentation of any requested subletting or assignment
          of this  Lease or  Lessee's  interest  in and to the  premises  Lessee
          immediately  and  irrevocably  assigns  to  Lessor,  as  security  for
          Lessee's obligations under this Lease, all rent from any subletting of
          all or part of the premises as permitted by this Lease, and Lessor, as
          assignee and as attorney-in-fact  for Lessee, or a receiver for Lessee
          appointed on Lessor's application,  may collect such rent and apply it
          toward Lessee's  obligations under this Lease;  except that, until the
          occurrence  of any act of  default by  Lessee,  Lessee  shall have the
          right to collect such rent.

27        CONDEMNATION: In the event all or part of the leased premises is taken
          or acquired for public use by condemnation or threat thereof:

          (a)  Lessee's  right to share in  compensation  otherwise  payable  to
               Lessor shall be as follows:

               (i)   Whole  Take;  This Lease  shall  terminate  on the  date of
                     transfer of title to the public agency or possession by the
                     public agency; whichever comes first Lessee shall assert no
                     claim for  loss  of bonus  value  but  may recover  prepaid
                     rents, if any, and  the then present worth remaining use of
                     leasehold  fixtures  and  improvements installed  by Lessee
                     with Lessor's written consent.

               (ii)  Partial Take (leaving remainder for the leasehold purpose):
                     Lessee may elect to terminate  this Lease as of the date of
                     transfer of title or possession  and Lessee's  compensation
                     shall  be the same as in a Whole  Take If  Lessee  does not
                     terminate, compensation  shall  be as if the  remainder  is
                     usable

               (iii) Partial Take (leaving  remainder  usable for the  leasehold
                     purpose):  Lessee shall assert no claim of loss bonus value
                     or  obligation to pay future  rents  Lessee may recover the
                     then value of the remaining  use of leasehold  fixtures and
                     improvements  installed by  Lessee on the part  taken  with
                     Lessor's written consent Then if the remainder's fair rent-
                     al value will  be less  than the  rent required  under this
                     Lease, Lessee may elect to have the rent  reduced to a fair
                     rental value  from and after the  date of transfer of title
                     or possession

          (b)  Lessee must give  notice to Lessor of any of the above  elections
               within  twenty  (20)  days  after  obtaining   knowledge  of  the
               impending acquisition

               (i)   Lessee  will be deemed to have knowledge  of the  impending
                     acquisition  on  its  entry  into  negotiations   with  the
                     condemning agency's  representatives, on receipt of service
                     of complaint and  summons  or order for  immediate  posses-
                     sion,  or on  receipt of  a letter  of  inquiry from Lessor
                     advising Lessee of the impending acquisition and requesting
                     notice of Lessee's resulting elections and contentions

               (ii)  Lessee's  notice  shall contain  a  clear  and  unequivocal
                     statement  of its  election under  subparagraph  (a) above,
                     reasons   for  this   election,  Lessee's   contention   of
                     compensation  and/or the  remainder's fair rental value and
                     reasons for these contentions

<PAGE>

               (iii) Time  is of the essence  and  the  express  purpose  of the
                     required  notice of  Lessee's  election,  contentions,  and
                     reasons is that Lessor may rely on them in  negotiation  or
                     litigation with the public agency

               (iv)  Lessee's  contentions shall  not  be  conclusive  as to the
                     amount of compensation, or usability or fair rental value
                     of the  remainder, and any dispute on these issues shall be
                     resolved  under the rules and  procedures for the  American
                     Arbitration Association

          (c)  Lessee's  failure to give notice of  election,  contentions,  and
               reasons shail  constitute a waiver of all rights to  compensation
               and/or  reduction of rent and, in the event of a partial  taking,
               rent shall  continue  throughout  the remaining  term in the full
               amount provided

28        RECORDATIOIM:  This lease shail not be recorded, except that if either
          party  requests the other party to do so, the parties  shall execute a
          Memorandum  of Lease in  recordable  form.  Lessee  shall  execute and
          deliver to Lessor on the  expiration  or  termination  of this  Lease,
          immediately  on Lessor's  request,  a quitclaim  deed to the leasehold
          premises, in recordable form, designating Lessor as transferee

29        ENTRY BY LESSOR:  Lessee shall  permit  Lessor and its agents to enter
          the  demised  premises  at  all  reasonable  times  for  any  purpose,
          including  but not limited to the following  purposes:  to inspect the
          same;  to maintain  the  building in which the  demised  premises  are
          located;  to make  repairs,  alterations  or  additions  to any  other
          portion of the  building as Lessor is  obligated or may elect to make;
          to post notices of  non-responsibility  for alterations,  additions or
          repairs Lessor shall have such right to entry and the right to fulfill
          the purpose thereof without any rebate of rent to Less for any loss of
          occupancy or quiet enjoyment of the Demised Premises.

30        ATTORNEYS'  FEES:  If Lessor  shall be made a party of any  litigation
          commenced by or against Lessee,  Lessee shall pay all costs,  expenses
          and  attorneys'  fees  incurred  by  Lessor  in  connection  with such
          litigation  except in the event that such  litigation  shall determine
          Lessor has committed a breach of this Lease and shall  adjudicate that
          Lessor  is  liable  therefore  In the  event of any  action  at law or
          inequity  between  Lessor and Lessee to enforce any of the  provisions
          and/or rights  hereunder,  the  unsuccessful  party to such litigation
          covenants  and  agrees  to pay to the  successful  party all costs and
          expenses,  including  reasonable  attorneys' fees incurred  therein by
          such  successful  party,  and if such  successful  party shall recover
          judgment in any such action or  proceeding,  such costs,  expenses and
          attorneys' fees shall be included in and as part of such judgment

31        LAWS AND  REGULATIONS:  Lessee,  at its own cost  and  expense,  shall
          comply promptly with all laws, rules and orders of all federal,  state
          and municipal  governments,  or  departments,  concerning  the Demised
          Premises or Lessee's use of the Demised Premises,  including,  without
          limitation, the requirement to alter, maintain, or restore the Demised
          Premises in conformity with all laws relating to the condition, use or
          occupancy of the Demised  Premises during the term, and shall likewise
          promptly   comply  with  the   requirements   of  the  Board  of  Fire
          Underwriters Americans with Disabilities Act concerning the premises

<PAGE>

32        SALE OR  TRANSFER  OF  PREMISES:  If  Lessor  sells or  transfers  the
          Property,  Lessor shall be released from any liability occurring under
          this Lease  after  consummation  of the sale or  transfer  if Lessor's
          successor  has  assumed in  writing  Lessor's  obligations  under this
          Lease,  and Lessor shall be discharged  from any further  liability in
          reference to the security deposit.

33        DAMAGE TO EXTERIOR OF  BUILDING:  Lessee  hereby  agrees to  reimburse
          Lessor up to and  including  an amount  equal to  Lessor's  deductible
          amount in Lessor's  property damage insurance policy for any damage to
          the exterior of the building,  including roof, store fronts,  entrance
          doors and locks of the  Lessee's  portion  of the  Property  that is a
          result  attributable  to any criminal act of  vandalism,  or burglary,
          attributable  acts of Lessee,  its employees,  agents,  or the acts of
          Lessee's invitees

34.       FAILURE OR  INTERRUPTION  OF  SERVICE:  Lessor  shall not be liable in
          damages or  otherwise  for any failure or  interruption  of any Common
          Area  services  being  furnished  to the  Property,  and no failure or
          interruption of Common Area services shall entitle Lessee to terminate
          this Lease.

35        CLEANLINESS:  Lessee  shall  keep the  premises  in a neat,  clean and
          sanitary  condition at all times Lessee shall not commit or permit any
          waste or  nuisance  on the  premises  and  shall  keep the  walks  and
          corridors  adjacent to the  premises  free from  Lessee's  rubbish and
          debris Lessee shall provide  janitorial  service at Lessee's  expense.
          All rubbish and debris shall be removed by Lessee from the premises at
          such times and to such places in the Property as Lessor may  designate
          from time to time

36        LIENS:  Lessee shall keep the premises and the Property  free from any
          liens arising out of work  performed for,  materials  furnished for or
          obligations  incurred by Lessee.  In the event that Lessee  shall not,
          within ten (10) days following the imposition of any such iien,  cause
          it to be released  of record,  Lessor  shall have,  in addition to all
          other  remedies  provided in this Lease and by law,  the right but not
          the  obligation to cause the lien to be released by whatever  means it
          deems proper,  including payment of the claim giving rise to the lien.
          All sums paid by Lessor for this purpose, and all expenses incurred by
          it in connection with such lien,  shall be payable to Lessor by Lessee
          on demand.  Lessor shall have the right to post and keep posted on the
          premises  any notices  that may be provided by law or which Lessor may
          deem to be proper for the  protection  of  Lessor,  the  premises  and
          Property  from such  liens,  and  Lessee  shall  give  Lessor at least
          fourteen  (14) days prior  notice of the date of  commencement  of any
          construction  on the  premises  in order to permit  the  posting  of a
          Notice  of  Non-  Responsibility  or  other  notice  Lessor  may  deem
          necessary

37        ABANDONMENT:  Lessee  agrees not to vacate or abandon the  premises at
          any time during the demised term Should  Lessee vacate or abandon said
          premises  or be  dispossessed  by  process of law or  otherwise,  such
          abandonment, vacation or dispossession shall be a breach of this Lease
          and, in addition to any other rights which Lessor may have, Lessor may
          remove any personal property  belonging to Lessee which remains on the
          demised  premises  and store the same,  the cost of such  removal  and
          storage to be charged to the account of Lessee

38        NUISANCE:  Lessee  shall not commit,  or suffer to be  committed,  any
          waste upon the demised premises, or any public or private nuisance, or
          other act or thing which may disturb the quiet  enjoyment of any other
          tenant in the  building in which the demised  premises  may be located
          Lessee shall  neither  conduct nor permit to be conducted  any sale by
          auction on the demised premises

<PAGE>

39        NOTICES:  All  notices  given to Lessee  may be given in writing or by
          depositing the same in the United States mails,  postage prepaid,  and
          addressed to Lessee at 1719 Powell  Street,  San  Francisco,  CA 94133
          whether or not Lessee has  departed  from,  abandoned  or vacated  the
          premises  Notice  by  Lessee  to  Lessor  shall be  given  in  writing
          personally  or by  depositing  in the  United  States  mails,  postage
          prepaid,  addressed  to  Lessor,  in care of Fiynn  Investments,  1717
          Powell Street, Suite 300, San Francisco, CA 94133, or at such place as
          Lessor may, from time to time, by like notice, designate

40        ESTOPPEL  CERTIFICATE:  At any time  and from  time to time but not on
          less than ten (10) days prior written  request by Lessor,  Lessee will
          execute,  acknowledge and deliver to Lessor,  promptly upon request, a
          certificate  certifying  (a) that this Lease is unmodified and in full
          force and  effect  {or,  if there have been  modifications,  that this
          Lease is in full force and effect,  as modified,  and stating the date
          and  nature  of each  modification),  (b) the date,  if any,  to which
          rental and other sums payable  hereunder  have been paid,  (c) that no
          notice has been  received by Lessee of any default by Lessee or Lessor
          which has not been  cured,  except as to  defaults  specified  in said
          certificate, and (d) such other matters as may be reasonably requested
          by Lessor Any such  certificate  may be relied upon by any prospective
          purchaser,  mortgagee  or  beneficiary  under any deed of trust on the
          building or any part thereof

41        INTERPRETATION:  This Lease  shall be  construed  and  interpreted  in
          accordance  with  the  Laws of the  State of  California  This  Lease,
          together with its exhibits  attached to this Lease and incorporated by
          reference,  contains all the agreements of the parties (except for any
          guaranty of Lessee's  obligations which may be required by Lessor) and
          cannot be  amended  or  modified  except by a  written  agreement  All
          provisions,  whether designated covenants and conditions,  on the part
          of Lessee  shall be deemed to be both  covenants  and  conditions  The
          captions  and the  index of this  Lease  shall  have no  effect on its
          interpretation  When  required  by the  context  of  this  Lease,  the
          singular  shall  include the plural Party shall mean Lessor or Lessee;
          and if at any time more than one  person  is  Lessor  or  Lessee,  the
          obligations  imposed on that  party  shall be joint and  several.  The
          unenforceability,  invalidity or  illegality of a provision  shall not
          render the other provisions unenforceable,  invalid or illegal Time is
          of the essence of each  provision of this Lease The provisions of this
          Lease shall (subject to the provisions as to assignments)  benefit and
          bind the heirs,  successors,  personal  representatives and assigns of
          the parties  The waiver of Lessor of any breach of any term,  covenant
          or condition  herein  contained shall be deemed to be a waiver of such
          terms,  covenant or condition or any subsequent  breach of same or any
          other term,  covenant or condition  herein  contained  The  subsequent
          acceptance  of rent  hereunder  by Lessor  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 pay the
          particular  rental so accepted,  regardless  of Lessor's  knowledge of
          such  preceding  breach  at the  time of  acceptance  of such  rent

42        REMOVAL OF  FURNISHINGS,  FIXTURES AND EQUIPMENT:  Lessee shall remove
          all of its store furnishings, fixtures and equipment from the premises
          on  expiration  or within ten (10) days after the  termination  of the
          Lease;  except  that no  fixtures  shall be removed  without  Lessor's
          consent if their removal would impair the  structural  strength of the
          premises or damage any  improvements  within the premises Lessee shall
          fully   repair  any  damage   caused  by  the  removal  of  its  store
          furnishings,  fixtures and equipment Any store  furnishings,  fixtures
          and equipment  not removed  within the time  specified  above shall at
          Lessor's  option  become  the  property  of Lessor  All  plumbing  and
          electrical wiring and fixtures,  vents, flues, hot water tanks, sinks,
          pipes  and other  equipment  and  fixtures  presently  located  on the
          premises  are now and shall  remain the  property  of Lessor If Lessee
          desires to replace any of the said items  presently  on the  premises,
          whether the property of Lessor or Lessee, the rights of the parties to
          any such  replacement  item shall remain as hereinabove  set forth. If
          Lessee  introduces  into the premises  any anew  fixtures or equipment
          that could be classified as a fixture or a trade  fixture,  s/he shall
          not be entitled to remove any such  item unless s/he  has obtained the

                                       16

<PAGE>

          written consent of the Lessor at the time of the  installation of said
          item

43        FICTITIOUS  BUSINESS  NAME:  Lessee  warrants  that  it is a  Delaware
          corporation  permitted  to do  business  in the City and County of San
          Francisco

44        UTILITIES:  Lessee shall pay for all utilities,  including water, gas,
          heat,  light,  power,  trash  collection,  janitorial  and  all  other
          services supplied to or consumed in or on the leased premises

45        INDEMNIFICATION  OF LESSOR:  Lessor shall not be liable for any claims
          of loss or damage however caused to property  occurring on the demised
          premises or any part thereof from any causes  except that Lessor shall
          be liable to lessee for damage resulting from the Negligence of Lessor
          or its authorized  representatives.  Any loss or damage as a result of
          water  leakage,  breaking  pipes,  theft,  fire,  etc will be borne by
          Lessee As these are  insurable  risks,  the  Lessee is  encouraged  to
          obtain  insurance  for  his/her  protection  Lessee  understands  that
          anything  placed within the building other than in the leased premises
          is done so at Lessee's own risk Lessee shall indemnify Lessor from any
          cause of action for personal  injury on the demised  premises from any
          cause whatsoever

46        ENTIRE AGREEMENT:  This Lease constitutes the entire agreement between
          Lessor and Lessee and voids any previous leases  regarding this space,
          between either Lessee or Lessor,  and no promises or  representations,
          expressed  or implied,  either  written or oral,  not herein set forth
          shall be binding upon or inure to the benefit of Lessor or Lessee This
          Lease shall not be modified by any oral  agreement,  either express or
          implied and all modification  hereof shall be in writing and signed by
          both Lessor and Lessee

<PAGE>

  IN WITNESS  WHEREOF,  Lessor and Lessee have  executed  this Lease the day and
year first above written.

 LESSEE: TOP GROUP HOLDINGS, INC.        LESSOR: CASA FLYNN, LLC
 A Delaware Corporation                  A California Limited Liability Company

By:_____________________________         By:____________________________________

<PAGE>

                                    EXHIBIT A

[GRAPHIC OMITTED]

                                                                       SKYLIGHT

-----------------                                           -----------------
Lessee's Initials                                           Lessor's Initials

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