Document:

<PAGE>

                                  EXHIBIT 10.11

                    Master Lease for the property located at
                       6033 West Century Blvd., Suite 500
                             Los Angeles, California
                               dated June 17, 1997

<PAGE>

                              STANDARD OFFICE LEASE
                                       FOR
                                 SKYVIEW CENTER

                                 BY AND BETWEEN

                        ARDEN REALTY LIMITED PARTNERSHIP,
                         A MARYLAND LIMITED PARTNERSHIP,

                                  AS LANDLORD,

                                       AND

                      METROPOLITAN LIFE INSURANCE COMPANY,
                             A NEW YORK CORPORATION,

                                    AS TENANT

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<TABLE>
<CAPTION>
                                TABLE OF CONTENTS
                                                                        PAGE
                                                                        ----
<S>                                                                     <C>
ARTICLE 1.....................................BASIC LEASE PROVISIONS       1

ARTICLE 2.......................................................TERM       2

ARTICLE 3.....................................................RENTAL       2

         (a)...........................................Basic Rental.       2

         (b)...............................Increase in Direct Costs.       2

         (c)............................................Definitions.       3

         (d)...............................Determination of Payment.       7

ARTICLE 4....................................COMMUNICATION EQUIPMENT       9

ARTICLE 5...............................................HOLDING OVER       10

ARTICLE 6....................................PERSONAL PROPERTY TAXES       11

ARTICLE 7........................................................USE       11

ARTICLE 8......................................CONDITION OF PREMISES       12

ARTICLE 9....................................REPAIRS AND ALTERATIONS       12

ARTICLE 10.....................................................LIENS       13

ARTICLE 11..........................................PROJECT SERVICES       14

ARTICLE 12........................................RIGHTS OF LANDLORD       16

ARTICLE 13...........INDEMNITY; EXEMPTION OF LANDLORD FROM LIABILITY       16

         (a)..............................................Indemnity.       16

         (b)...................Exemption of Landlord from Liability.       17

ARTICLE 14.................................................INSURANCE       18

         (a).....................................Tenant's Insurance.       18

         (b).......................................Form of Policies.       19

         (c)...................................Landlord's Insurance.       19

         (d)..................................Waiver of Subrogation.       19

                                         i
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         (e)....................................Compliance with Law.       20

ARTICLE 15.................................ASSIGNMENT AND SUBLETTING       20

ARTICLE 16.....................................DAMAGE OR DESTRUCTION       23

ARTICLE 17.............................................SUBORDINATION       24

ARTICLE 18............................................EMINENT DOMAIN       25

ARTICLE 19...................................................DEFAULT       25

ARTICLE 20..................................................REMEDIES       26

ARTICLE 21...........................TRANSFER OF LANDLORD'S INTEREST       28

ARTICLE 22....................................................BROKER       28

ARTICLE 23...................................................PARKING       29

ARTICLE 24....................................................WAIVER       30

ARTICLE 25......................................ESTOPPEL CERTIFICATE       30

ARTICLE 26.....................................LIABILITY OF LANDLORD       30

ARTICLE 27..................................... INABILITY TO PERFORM       31

ARTICLE 28...........................................HAZARDOUS WASTE       31

ARTICLE 29................SURRENDER OF PREMISES; REMOVAL OF PROPERTY       33

ARTICLE 30.............................................MISCELLANEOUS       34

         (a).........................Severability; Entire Agreement.       34

         (b)..................Attorneys' Fees; Waiver of Jury Trial.       34

         (c)........................................Time of Essence.       35

         (d)...............................................Headings.       35

         (e)..........................................Reserved Area.       35

         (f)..............................................No Option.       35

         (g)......................Use of Project Name; Improvements.       35

         (h)..................................Rules and Regulations.       35

                                         ii
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         (i).......................................Quiet Possession.       36

         (j)...................................................Rent.       36

         (k).................................Successors and Assigns.       36

         (l)................................................Notices.       36

         (m)...............................Persistent Delinquencies.       36

         (n)...........................Right of Landlord to Perform.       36

         (o)...........Access, Changes in Project, Facilities, Name.       37

         (p).........................,,.........Corporate Authority.       37

         (q)...............................Identification of Tenant.       37

         (r)....................................Substitute Premises.       39

         (s)..................................Exhibits and Addendum.       39

ARTICLE 31..........................................OPTION TO EXTEND       39

         (a)...........................................Option Right.       39

         (b)............................................Option Rent.       39

         (c)....................................Exercise of Options.       40

         (d)...........................Determination of Market Rent.       40

ARTICLE 32......................................RIGHT OF FIRST OFFER       41

ARTICLE 33.................................................DIRECTORY       43

ARTICLE 34........................................TERMINATION OPTION       43
</TABLE>

Addendum. / / Yes           /X/ No

Exhibit "A"   Premises
Exhibit "B"   Rules and Regulations
Exhibit "C"   Notice of Lease Term Dates and Tenant's Proportionate Share
Exhibit "D"   Tenant Work Letter

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<TABLE>
<CAPTION>
                                TABLE OF CONTENTS

                             INDEX OF DEFINED TERMS

DEFINED TERMS                                                             PAGE
-------------                                                             ----
<S>                                                                       <C>
Abatement Event............................................................15
Abatement Notice...........................................................15
ADA........................................................................11
Additional Allowance................................................Exhibit D
Additional Rent.............................................................3
Applicable Reassessment.....................................................4
Approved Working Drawings...........................................Exhibit D
Architect...........................................................Exhibit D
Base Year...................................................................3
Base, Shell and Core................................................Exhibit D
Basic Rental................................................................2
Brokers.....................................................................2
Claims.....................................................................16
Code................................................................Exhibit D
Commencement Date...........................................................1
Communication Equipment.....................................................8
Communication Equipment Notice..............................................8
Construction Drawings...............................................Exhibit D
Contract............................................................Exhibit D
Contractor..........................................................Exhibit D
Damage Repair Estimate.....................................................22
Direct Costs................................................................3
Economic Terms.............................................................40
Eligibility Period.........................................................15
Engineers...........................................................Exhibit D
Estimate....................................................................6
Estimate Statement..........................................................6
Estimated Excess............................................................7
Event of Default...........................................................24
Excess......................................................................6
Expiration Date.............................................................1
Final Costs.........................................................Exhibit D
Final Space Plan....................................................Exhibit D
Final Working Drawings..............................................Exhibit D
First Month's Rent..........................................................2
First Offer Notice.........................................................40
First Offer Space..........................................................39
Force Majeure..............................................................30
Hazardous Material..........................................................6
Interest Notice............................................................38

<PAGE>

Landlord....................................................................1
Landlord Delay......................................................Exhibit D
Laws.......................................................................32
Lease.......................................................................1
Lease Year..................................................................2
Market Rent................................................................38
Operating Costs.............................................................5
Option.....................................................................38
Option Rent................................................................38
Option Rent Notice.........................................................38
Option Term................................................................38
Original Tenant............................................................38
Outside Agreement Date.....................................................38
Parking Passes..............................................................2
Partnership Tenant.........................................................36
Permits.............................................................Exhibit D
Permitted Use...............................................................2
Premises....................................................................1
Project.....................................................................1
Proposition 13 Protection Amount............................................4
Proposition 13 Purchase Price...............................................4
Real Property...............................................................3
Reassessment................................................................4
Representative.............................................................30
Review Period...............................................................7
Security Deposit............................................................1
Square Footage..............................................................1
Statement...................................................................7
Structure Passes............................................................2
Superior Leases............................................................39
Superior Rights............................................................40
Surface Passes..............................................................2
Tax Costs...................................................................3
Tax Increase................................................................4
Tenant......................................................................1
Tenant's Acceptance........................................................38
Tenant Improvement Allowance........................................Exhibit D
Tenant Improvement Allowance Items..................................Exhibit D
Tenant Improvements.................................................Exhibit D
Tenant's Agents.....................................................Exhibit D
Tenant's Proportionate Share................................................1
Term........................................................................1
Termination Date...........................................................41
Termination Fee............................................................41
Termination Notice.........................................................41
Termination Option.........................................................41

<PAGE>

Transfer...................................................................20
Transfer Premium...........................................................20
Transferee.................................................................20
Uncontrollable Delay................................................Exhibit D
</TABLE>
<PAGE>

                              STANDARD OFFICE LEASE

         This Standard Office Lease ("Lease") is made and entered into as of
this 17th day of June, 1997, by and between ARDEN REALTY LIMITED PARTNERSHIP, a
Maryland limited partnership ("Landlord"), and METROPOLITAN LIFE INSURANCE
COMPANY, a New York corporation ("Tenant").

         Landlord hereby leases to Tenant and Tenant hereby leases from Landlord
the premises described as Suite No. 500, as designated on the plan attached
hereto and incorporated herein as Exhibit "A" ("Premises"), of the project
("Project") now known as "SKYVIEW CENTER" whose address is 6033 West Century
Boulevard, Los Angeles, California for the Term and upon the terms and
conditions hereinafter set forth, and Landlord and Tenant hereby agree as
follows:

         BASIC LEASE PROVISIONS

A.           TERM:                      Ten (10) years

             COMMENCEMENT DATE:         The earlier of (i) the date Tenant first
                                        commences to conduct business in the
                                        Premises, or October 1, 1997, subject to
                                        Section 5 of the Tenant Work Letter.

             EXPIRATION                 DATE: The last day of the month which is
                                        one hundred twenty (120) months after
                                        the month in which the Commencement Date
                                        falls, unless extended or earlier
                                        terminated pursuant to this Lease.

B.           SQUARE FOOTAGE:            16,339 rental (15,059 usable) square
                                        feet

C.           BASIC RENTAL:

<TABLE>
                                               Annual               Monthly               Monthly Basic Rental
                      Lease Year            Basic Rental         Basic Rental           Per Rentable Square Foot
                      ----------            ------------         ------------           ------------------------
                      <S>                   <C>                  <C>                    <C>
                          1-5               $235,281.60           $19,606.80                     $1.20

                         6-10               $274,495.20           $22,874.60                     $1.40
</TABLE>

    D.       BASE YEAR:                                                    1998

    E.       TENANT'S PROPORTIONATE SHARE:                                8.37%

    F.       SECURITY DEPOSIT:                                             None

    G.       PERMITTED USE:                     General office use and employee
                                                training center.

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    H.       BROKERS:                           Lee & Associates

    I.       PARKING PASSES:                    Tenant shall have the use of up
                                                to forty-eight (48) unreserved
                                                parking passes in the Project's
                                                surface parking lot ("Surface
                                                Passes") and up to fifteen (15)
                                                unreserved parking passes in the
                                                Project's parking structure
                                                ("Structure Passes"), at the
                                                rate provided in Article 23
                                                hereof.

    J.      FIRST MONTH'S RENT:                 The first full month's rent of
                                                $19,606.80 shall be due and
                                                payable by Tenant to Landlord,
                                                within fifteen (15) days after
                                                Tenant's receipt of the fully
                                                executed Lease.

         TERM
         The Term of this Lease shall commence on the Commencement Date as set
forth in Article 1.A. of the Basic Lease Provisions and shall end on the
Expiration Date set forth in Article 1.A. of the Basic Lease Provisions. For
purposes of this Lease, the term "Lease Year" shall mean each consecutive twelve
(12) month period during the Lease Term, with the first Lease Year commencing on
the Commencement Date; however, (a) if the Commencement Date falls on a day
other than the first day of a calendar month, the first Lease Year shall end on
the last day of the eleventh (11th) month after the Commencement Date and the
second (2nd) and each succeeding Lease Year shall commence on the first day of
the next calendar month, and (b) the last Lease Year shall end on the Expiration
Date. If Landlord is unable to deliver possession of the Premises to Tenant on
or before the anticipated Commencement Date, except as provided in Section 5.3
of the Tenant Work Letter attached hereto as Exhibit "D," Landlord shall not be
subject to any liability for its failure to do so, and such failure shall not
affect the validity of this Lease nor the obligations of Tenant hereunder.

         RENTAL

         BASIC RENTAL. Tenant agrees to pay to Landlord during the Term hereof,
                  at Landlord's office or to such other person or at such other
                  place as directed from time to time by written notice to
                  Tenant from Landlord, the initial monthly and annual sums as
                  set forth in Article 1.C. of the Basic Lease Provisions,
                  payable in advance on the first day of each calendar month,
                  without demand, setoff or deduction, and in the event this
                  Lease commences or the date of expiration of this Lease occurs
                  other than on the first day or last day of a calendar month,
                  the rent for such month shall be prorated. Notwithstanding the
                  foregoing, the first full month's rent shall be paid to
                  Landlord in accordance with Article 1.J. of the Basic Lease
                  Provisions.

         INCREASE IN DIRECT COSTS. The term "Base Year" means the calendar year
                  set forth in Article 1.D. of the Basic Lease Provisions. If,
                  in any calendar year during the Term of this Lease, the
                  "Direct Costs" (as hereinafter defined) paid or incurred by

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                  Landlord shall be higher than the Direct Costs for the Base
                  Year, Tenant shall pay an additional sum for such and each
                  subsequent calendar year equal to the product of the amount
                  set forth in Article 1.E. of the Basic Lease Provisions
                  multiplied by such increased amount of "Direct Costs." In the
                  event either the Premises and/or the Project is expanded or
                  reduced, then Tenant's Proportionate Share shall be
                  appropriately adjusted, and as to the calendar year in which
                  such change occurs, Tenant's Proportionate Share for such year
                  shall be determined on the basis of the number of days during
                  that particular calendar year that such Tenant's Proportionate
                  Share was in effect. In the event this Lease shall terminate
                  on any date other than the last day of a calendar year, the
                  additional sum payable hereunder by Tenant during the calendar
                  year in which this Lease terminates shall be prorated on the
                  basis of the relationship which the number of days which have
                  elapsed from the commencement of said calendar year to and
                  including said date on which this Lease terminates bears to
                  three hundred sixty (360). Any and all amounts due and payable
                  by Tenant pursuant to Article 3(b), (c) and (d) hereof shall
                  be deemed "Additional Rent" and Landlord shall be entitled to
                  exercise the same rights and remedies upon default in these
                  payments as Landlord is entitled to exercise with respect to
                  defaults in monthly Basic Rental payments.

         DEFINITIONS.  As used herein the term "Direct Costs" shall mean the sum
                       of the following:

                  "Tax Costs," which shall mean any and all real estate taxes
                        and other similar charges on real property or
                        improvements, assessments, water and sewer charges, and
                        all other charges assessed, reassessed or levied upon
                        the Project and appurtenances thereto and the parking or
                        other facilities thereof, or the real property
                        thereunder (collectively the "Real Property") or
                        attributable thereto or on the rents, issues, profits or
                        income received or derived therefrom which are assessed,
                        reassessed or levied by the United States, the State of
                        California or any local government authority or agency
                        or any political subdivision thereof, and shall include
                        Landlord's reasonable legal fees, costs and
                        disbursements incurred in connection with proceedings
                        for reduction of Tax Costs or any part thereof;
                        provided, however, if at any time after the date of this
                        Lease the methods of taxation now prevailing shall be
                        altered so that in lieu of or as a supplement to or a
                        substitute for the whole or any part of any Tax Costs,
                        there shall be assessed, reassessed or levied (a) a tax,
                        assessment, reassessment, levy, imposition or charge
                        wholly or partially as a net income, capital or
                        franchise levy or otherwise on the rents, issues,
                        profits or income derived therefrom, or (b) a tax,
                        assessment, reassessment, levy (including but not
                        limited to any municipal, state or federal levy),
                        imposition or charge measured by or based in whole or in
                        part upon the Real Property and imposed upon Landlord,
                        or (c) a license fee measured by the rent payable under
                        this Lease, then all such taxes, assessments,
                        reassessments or levies or the part thereof so measured
                        or based, shall be deemed to be included in the term
                        "Direct Costs." Any taxes or assessments that may be
                        paid over more than a one-year period shall be
                        apportioned evenly over the

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                        maximum period of payment time permitted by
                        applicable law and only the portion thereof
                        attributable to a given year shall be included in Tax
                        costs for that year. Tax Costs shall not include (i)
                        any federal, state or local income, profit,
                        franchise, privilege, capital levy, excise,
                        inheritance, estate, succession, gift, deed,
                        conveyance or transfer taxes or (ii) any penalties or
                        interest for the late payment thereof. In no event
                        shall Tax Costs included in Direct Costs for any year
                        subsequent to the Base Year be less than the amount
                        of Tax Costs included in direct Costs for the Base
                        Year. In addition, when calculating Tax Costs for the
                        Base Year, special assessments shall only be deemed
                        included in Tax Costs for the Base Year to the extent
                        that such special assessments are included in Tax
                        Costs for the applicable subsequent calendar year
                        during the Term.

         Notwithstanding anything to the contrary contained in this Lease, in
the event that, at any time during the first three (3) Lease Years, any sale,
refinancing, or change in ownership of the Real Property is consummated, and as
a result thereof, and to the extent that in connection therewith, the Real
Property is reassessed (the "Reassessment") for real estate tax purposes by the
appropriate governmental authority pursuant to the terms of Proposition 13, then
the following provisions shall apply to such Reassessment of the Real Property.

         For purposes of this Section 3(c)(i), the term "Tax Increase" shall
mean that portion of the Tax Costs, as calculated immediately following the
Reassessment, which is attributable solely to the Reassessment. Accordingly, the
term Tax Increase shall not include any portion of the Tax Costs, as calculated
immediately following the Reassessment, which (i) is attributable to the initial
assessment of the value of the Real Property, the base, shell and core of the
Project or the tenant improvements located in the Building, (ii) is attributable
to assessments which were pending immediately prior to the Reassessment which
assessments were conducted during, and included in, such Reassessment, or which
assessments were otherwise rendered unnecessary following the Reassessment, or
(iii) is attributable to the annual inflationary increase of real estate taxes
permitted to be assessed annually under Proposition 13. During the first three
(3) years of the initial Lease Term, any Tax Increase shall be excluded from Tax
Costs. After the first three (3) years of the initial Lease Term, any Tax
Increase shall be included in Tax Costs.

         The amount of Tax Costs which Tenant is not obligated to pay or will
not be obligated to pay during the first three (3) years of the initial Lease
Term in connection with a particular Reassessment pursuant to the terms of this
Section 3(c)(i), shall be sometimes referred to hereafter as a "Proposition 13
Protection Amount." If the occurrence of a Reassessment is reasonably
foreseeable by Landlord and the Proposition 13 Protection Amount attributable to
such Reassessment can be reasonably quantified or estimated for each Lease Year
commencing with the Lease Year in which the Reassessment will occur, the terms
of this Section 3(c)(i) shall apply to each such Reassessment. Upon notice to
Tenant, Landlord shall have the right to purchase the Proposition 13 Protection
Amount relating to the Applicable Reassessment (the "Applicable Reassessment"),
at any time during the Lease Term, by paying to Tenant an amount equal to the
Proposition 13 Purchase Price, as that term is defined below, provided that the
right of any successor of Landlord to exercise its right of repurchase hereunder
shall not apply to any Reassessment which results from the event pursuant to
which such successor of Landlord

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<PAGE>

became the Landlord under this Lease. As used herein, "Proposition 13
Purchase Price" shall mean the present value of the Proposition 13 Protection
Amount remaining during the Lease Term, as of the date of payment of the
Proposition 13 Purchase Price by Landlord. Such present value shall be
calculated (i) by using the portion of the Proposition 13 Protection Amount
attributable to each remaining Lease Year (as though the portion of such
Proposition 13 Protection Amount benefited Tenant at the end of each Lease
Year), as the amounts to be discounted, and (ii) by using discount rates for
each amount to be discounted equal to (A) the prime interest rate, as
reported in the Wall Street Journal as of the date of Landlord's exercise of
its right to purchase, as set forth in this Section 3(c)(i), plus (B) two
percent (2%) per annum. Upon such payment of the Proposition 13 Purchase
Price, the provisions of the immediately preceding paragraph of Section
3(c)(i) of this Lease shall not apply to any Tax Increase attributable to the
Applicable Reassessment. Since Landlord is estimating the Proposition 13
Purchase Price because a Reassessment has not yet occurred, then when such
Reassessment occurs, if Landlord has underestimated the Proposition 13
Purchase Price, then upon notice by Landlord to Tenant, Tenant's Basic Rental
next due shall be credited with the amount of such underestimation, and if
Landlord overestimates the Proposition 13 Purchase Price, then upon notice by
Landlord to Tenant, Basic Rental next due shall be increased by the amount of
the overestimation.

                  "Operating Costs," which shall mean all costs and expenses
                           incurred by Landlord in connection with the
                           maintenance, operation, replacement, ownership and
                           repair of the Project, the equipment, the
                           intrabuilding network cable, adjacent walks, malls
                           and landscaped and common areas and the parking
                           structure, areas and facilities of the Project,
                           including, but not limited to, salaries, wages,
                           medical, surgical and general welfare benefits and
                           pension payments, payroll taxes, fringe benefits,
                           employment taxes, workers' compensation, uniforms and
                           dry cleaning thereof for all persons who perform
                           duties connected with the operation, maintenance and
                           repair of the project, its equipment, the
                           intrabuilding network cable and the adjacent walks
                           and landscaped areas, including janitorial,
                           gardening, security, parking, operating engineer,
                           elevator, painting, plumbing, electrical, carpentry,
                           heating, ventilation, air conditioning, window
                           washing, hired services, the rental expense of
                           personal property used in the maintenance, operation
                           and repair of the Project, accountant's fees incurred
                           in the preparation of rent adjustment statements,
                           legal fees, real estate tax consulting fees, personal
                           property taxes on property used in the maintenance
                           and operation of the Project, capital expenditures
                           incurred to effect economies of operation and capital
                           expenditures required by government regulations,
                           laws, or ordinances including, but not limited to the
                           American with Disabilities Act; the cost of all
                           charges for electricity, gas, water and other
                           utilities furnished to the Project, including any
                           taxes thereon; the cost of all charges for fire and
                           extended coverage, liability and all other insurance
                           for the Project carried by Landlord; the cost of all
                           building and cleaning supplies and materials; the
                           cost of all charges for cleaning, maintenance and
                           service contracts and other services with independent
                           contractors and administration fees; a property
                           management

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<PAGE>

                           fee (which fee may be imputed if Landlord has
                           internalized management or otherwise acts as its
                           own property manager) and license, permit and
                           inspection fees relating to the Project. In the
                           event, during any calendar year including the Base
                           Year, the Project is less than ninety-five percent
                           (95%) occupied at all times, Operating Costs shall
                           be adjusted to reflect the Operating Costs of the
                           Project as though ninety-five percent (95%) were
                           occupied at all times, and the increase or decrease
                           in the sums owned hereunder shall be based upon
                           such Operating Costs as so adjusted.
                           Notwithstanding anything to the contrary set forth
                           in this Article 3, when calculating Operating Costs
                           for the Base Year, Operating Costs shall exclude
                           (a) market-wide labor-rate increases due to
                           extraordinary circumstances including, but not
                           limited to, boycotts and strikes, (b) utility rate
                           increases due to extraordinary circumstances
                           including, but not limited to, conservation
                           surcharges, boycotts, embargoes or other shortages,
                           and (c) amortization of any capital items
                           including, but not limited to, capital
                           improvements, capital repairs and capital
                           replacements (including such amortized costs where
                           the actual improvement, repair or replacement was
                           made in prior years).

         Notwithstanding anything above to the contrary, Operating Costs shall
not include (1) the cost of providing any service directly to and paid
directly by any tenant (outside of such tenant's Direct cost payments); (2)
the cost of any items for which Landlord is reimbursed by insurance proceeds,
condemnation awards, a tenant of the Project, or otherwise to the extent so
reimbursed; (3) any real estate brokerage commissions or other costs incurred
in procuring tenants, or any fee in lieu of commission; (4) depreciation,
amortization of principal and interest on mortgages or ground lease payments
(if any); (5) costs of items considered capital repairs, replacements,
improvements and equipment under generally accepted accounting principles
consistently applied except as expressly included in Operating Costs pursuant
to the definition above; (6) costs incurred by Landlord due to the violation
by Landlord or any tenant of the terms and conditions of any lease of space in
the Project or any law, code, regulation, ordinance or the like; (7)
Landlord's general corporate overhead and general and administrative expenses;
(8) any compensation paid to clerks, attendants or other persons in commercial
concessions operated by Landlord (other than in the parking facility for the
Project); (9) costs incurred in connection with upgrading the Project to
comply with disability, life, seismic, fire and safety codes, ordinances,
statutes, or other laws in effect prior to the Commencement Date, including,
without limitation, the ADA, including penalties or damages incurred due to
such non-compliance; and (10) costs incurred to (i) comply with laws relating
to the removal of any "Hazardous Material," as that term is defined in Article
28 of this Lease, which was in existence on the Project prior to the
Commencement Date, and was of such a nature that a federal, state or municipal
governmental authority, if it had then had knowledge of the presence of such
Hazardous Material, in the state, and under the conditions that it then
existed on the Project, would have then required the removal of such Hazardous
Material or other remedial or containment action with respect thereto, and
(ii) to remove, remedy, contain, or treat any Hazardous Material, which
Hazardous Material is brought onto the Project after the date hereof by
Landlord or any other tenant of the Project and is of such a nature, at that
time, that a federal, state or municipal governmental authority, if it had
then had knowledge of the presence of such Hazardous Material, in the state,
and under the

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<PAGE>

conditions, that it then exists on the Project, would have then required the
removal of such Hazardous Material or other remedial or containment action
with respect thereto.

         DETERMINATION OF PAYMENT.

                  If for any calendar year ending or commencing within the Term,
                          Tenant's Proportionate Share of Direct Costs for such
                          calendar year exceeds Tenant's Proportionate Share of
                          Direct Costs for the Base Year, then Tenant shall pay
                          to Landlord, in the manner set forth in Sections
                          3(d)(ii) and (iii), below, and as additional rent, an
                          amount equal to the excess (the "Excess").

                  Landlord shall give Tenant a yearly expense estimate statement
                          (the "Estimate Statement") which shall set forth
                          Landlord's reasonable estimate (the "Estimate") of
                          what the total amount of Direct Costs for the
                          then-current calendar year shall be and the estimated
                          Excess (the "Estimated Excess") as calculated by
                          comparing Tenant's Proportionate Share of Direct Costs
                          for such calendar year, which shall be based upon the
                          Estimate, to Tenant's Proportionate Share of Direct
                          Costs for the Base Year. The failure of Landlord to
                          timely furnish the Estimate statement for any calendar
                          year shall not preclude Landlord from enforcing its
                          rights to collect any Estimated Excess under this
                          Article 3. If pursuant to the Estimate Statement an
                          Estimated Excess is calculated for the then-current
                          calendar year, Tenant shall pay, with its next
                          installment of Monthly Basic Rental due, a fraction of
                          the estimated Excess for the then-current calendar
                          year reduced by any amounts paid pursuant to the last
                          sentence of this Section 3(d)(ii)). Such fraction
                          shall have as its numerator the number of months which
                          have elapsed in such current calendar year to the
                          month of such payment, both months inclusive, and
                          shall have twelve (12) as its denominator. Until a new
                          Estimate Statement is furnished, Tenant shall pay
                          monthly, with the Monthly Basic Rental installments,
                          an amount equal to one-twelfth (1/12th) of the total
                          Estimated Excess set forth in the previous Estimate
                          Statement delivered by Landlord to Tenant.

                  In addition, Landlord shall endeavor to give to Tenant on or
                          before the first day of April following the end of
                          each calendar year, a statement (the "Statement")
                          which shall state the Direct Costs incurred or accrued
                          for such preceding calendar year, and which shall
                          indicate the amount, if any, of the Excess. Upon
                          receipt of the Statement for each calendar year during
                          the Term, if amounts paid by Tenant as Estimated
                          Excess are less than the actual Excess as specified on
                          the Statement, Tenant shall pay, with its next
                          installment of Monthly Basic Rental due, the full
                          amount of the Excess for such calendar year, less the
                          amounts, if any, paid during such calendar year as
                          Estimated Excess. If, however, the Statement indicates
                          that amounts paid by Tenant as Estimated Excess are
                          greater than the actual Excess as specified on the
                          Statement, such overpayment

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                          shall be credited against Tenant's next installments
                          of Estimated Excess. The failure of Landlord to
                          timely furnish the Statement for any calendar year
                          shall not prejudice Landlord from enforcing its
                          rights under this Article 3. Even though the Term
                          has expired and Tenant has vacated the Premises,
                          when the final determination is made of Tenant's
                          Proportionate Share of the Direct Costs for the
                          calendar year in which this Lease terminates, if an
                          Excess is present, Tenant shall immediately pay to
                          Landlord an amount as calculated pursuant to the
                          provisions of this Article 3(d). The provisions of
                          this Section 3(d)(iii) shall survive the expiration
                          or earlier termination of the Term.

                  Within one hundred twenty (120) days after receipt of a
                          Statement by Tenant ("Review Period"), if Tenant
                          disputes the amount set forth in the Statement,
                          Tenant's employees or an independent certified public
                          accountant (which accountant is a member of a
                          nationally or regionally recognized accounting firm),
                          designated by Tenant, may, after reasonable notice to
                          Landlord and at reasonable times, inspect Landlord's
                          records, provided that Tenant is not then in default
                          after expiration of all applicable cure periods and
                          provided further that Tenant and such accountant or
                          representative shall, and each of them shall use their
                          commercially reasonable efforts to cause their
                          respective agents and employees to, maintain all
                          information contained in Landlord's records in strict
                          confidence. Notwithstanding the foregoing, Tenant
                          shall only have the right to review Landlord's records
                          one (1) time during any twelve (12) month period.
                          Tenant's failure to dispute the amounts set forth in
                          any Statement within the Review Period shall be deemed
                          to be Tenant's approval of such Statement and Tenant,
                          thereafter, waives the right or ability to dispute the
                          amounts set forth in such Statement. If after such
                          inspection, but within thirty (30) days after the
                          Review Period, Tenant notifies Landlord in writing
                          that Tenant still disputes such amounts, a
                          certification as to the proper amount shall be made,
                          at Tenant's expense, by an independent certified
                          public accountant selected by Landlord and who is a
                          member of a nationally or regionally recognized
                          accounting firm. Landlord shall cooperate in good
                          faith with Tenant and the accountant to show Tenant
                          and the accountant the information upon which the
                          certification is to be based. However, if such
                          certification by the accountant proves that the Direct
                          Costs set forth in the Statement were overstated by
                          more than ten percent (10%), then the cost of the
                          accountant and the cost of such certification, the
                          parties shall make such appropriate payments or
                          reimbursements, as the case may be, to each other, as
                          are determined to be owing pursuant to such
                          certification.

                  If the Project is a part of a multi-building development,
                          those Direct Costs attributable to such development as
                          a whole (and not attributable solely to any individual
                          building therein) shall be allocated by Landlord to
                          the

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                          Project and to the other buildings within such
                          development on an equitable basis.

         COMMUNICATION EQUIPMENT

         If Tenant desires to use the roof of the Project to install
communication equipment to be used from the Premises, Tenant may so notify
Landlord in writing ("Communication Equipment Notice"), which Communication
Equipment Notice shall generally describe the specifications for the equipment
desired by Tenant. If at the time of Landlord's receipt of the Communication
Equipment Notice, Landlord reasonably determines that space is available on the
roof of the Project for such equipment, and that such use by Tenant would not
interfere with the rights of any other tenant of the Building, then subject to
all governmental laws, rules and regulations, Tenant and Tenant's contractors
(which shall first be reasonably approved by Landlord) shall have the right and
access to install, repair, replace, remove, operate and maintain one (1)
so-called "satellite dish" or other similar device, such as antennae
(collectively, "Communication Equipment") no greater than eighteen (18) inches
in diameter, together with all cable, wiring, conduits and related equipment,
for the purpose of receiving and sending radio, television, computer, telephone
or other communication signals, at a location on the roof of the Project
designated by Landlord. Landlord shall have the right to require Tenant to
relocate the Communication Equipment at any time to another location on the roof
of the Project reasonably approved by Tenant. Tenant shall retain Landlord's
designated roofing contractor to make any necessary penetrations and associated
repairs to the roof in order to preserve Landlord's roof warranty. Tenant's
installation and operation of the Communication Equipment shall be governed by
the following terms and conditions:

         Tenant's right to install, replace, repair, remove, operate and
                  maintain the Communication Equipment shall be subject to all
                  governmental laws, rules and regulations and Landlord makes no
                  representation that such laws, rules and regulations permit
                  such installation and operation.

         All plans and specification for the Communication Equipment shall
                  be subject to Landlord's reasonable approval, which approval
                  shall not be unreasonably withheld or delayed.

         All costs of installation, operation and maintenance of the
                  Communication Equipment and any necessary related equipment
                  (including, without limitation, costs of obtaining any
                  necessary permits and connections to the Project's electrical
                  system) shall be borne by Tenant.

         It is expressly understood that Landlord retains the right to use the
                  roof of the Project for any purpose whatsoever provided that
                  Landlord shall not unduly interfere with Tenant's use of the
                  Communication Equipment.

         Tenant shall use the Communication Equipment so as not to cause any
                  interference to other tenants in the Project or to other
                  tenants of the Project or with any other

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                  tenant's Communication Equipment, and not to damage the
                  Project or interfere with the normal operation of the Project.

         Landlord shall not have any obligations with respect to the
                  Communication Equipment. Landlord makes no representation that
                  the Communication Equipment will be able to receive or
                  transmit communication signals without interference or
                  disturbance (whether or not by reason of the installation or
                  use of similar equipment by others on the roof of the Project)
                  and Tenant agrees that Landlord shall not be liable to Tenant
                  therefor.

         Tenant shall (i) be solely responsible for any damage caused as a
                  result of the Communication Equipment, (ii) promptly pay any
                  tax, license or permit fees charged pursuant to any laws or
                  regulations in connection with the installation, maintenance
                  or use of the Communication Equipment and comply with all
                  precautions and safeguards recommended by all governmental
                  authorities, and (iii) pay for all necessary repairs,
                  replacements to or maintenance of the Communication Equipment.

         The Communication Equipment shall remain the sole property of Tenant.
                  Tenant shall remove the Communication Equipment and related
                  equipment at Tenant's sole cost and expense upon the
                  expiration or sooner termination of this Lease or upon the
                  imposition of any governmental law or regulation which may
                  require removal, and shall repair the Project upon such
                  removal to the extent required by such work of removal. If
                  Tenant fails to remove the Communication Equipment and repair
                  the Project within fifteen (15) days after the expiration or
                  earlier termination of this Lease, Landlord may do so at
                  Tenant's expense. The provisions of this Section 4(h) shall
                  survive the expiration or earlier termination of this Lease.

         The Communication Equipment shall be deemed to constitute a portion of
                  the Premises for purposes of Articles 13 and 14 of this Lease.

         HOLDING OVER

         Should Tenant, without Landlord's written consent, hold over after
termination of this Lease, Tenant shall become a tenant from month-to-month,
only upon each and all of the terms herein provided as may be applicable to a
month-to-month tenancy and any such holding over shall not constitute an
extension of this Lease. During such holding over, Tenant shall pay in advance,
monthly, rent at one hundred fifty percent (150%) of the rate in effect for the
last month of the Term of this Lease, in addition to, and not in lieu of, all
other payments (other than Basic Rental) required to be made by Tenant hereunder
including but not limited to Tenant's Proportionate Share of any increase in
Direct Costs. Nothing contained in this Article 5 shall be construed as consent
by Landlord to any holding over of the Premises by Tenant, and Landlord
expressly reserves the right to require Tenant to surrender possession of the
Premises to Landlord as provided in this Lease upon the expiration or earlier
termination of the Term. If, without Landlord's prior written consent, Tenant
fails to surrender the Premises upon the expiration or termination of this
Lease, Tenant agrees to indemnify, defend and hold Landlord harmless from

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all costs, loss, expense or liability, including without limitation, claims
made by any succeeding tenant and real estate brokers claims and attorney's
fees.

         PERSONAL PROPERTY TAXES

         Tenant shall pay, prior to delinquency, all taxes assessed against or
levied upon trade fixtures, furnishings, equipment and all other personal
property of Tenant located in the Premises. In the event any or all of Tenants
trade fixtures, furnishings, equipment and other personal property shall be
assessed and taxed with property of Landlord, or if the cost or value of any
leasehold improvements in the Premises exceeds the cost or value of a
Project-standard buildout as determined by Landlord and, as a result, real
property taxes for the Project are increased, Tenant shall pay to Landlord its
share of such taxes within thirty (30) days after delivery to Tenant by Landlord
of a statement in writing setting forth the amount of such taxes applicable to
Tenant's property or above-standard improvements. Tenant shall assume and pay to
Landlord at the time of paying Basic Rental any excise, sales, use, rent,
occupancy, garage, parking, gross receipts or other taxes (other than net income
taxes) which may be imposed on or on account of letting of the Premises or the
payment of Basic Rental or any other sums due or payable hereunder, and which
Landlord may be required to pay or collect under any law now in effect or
hereafter enacted. Tenant shall pay directly to the party or entity entitled
thereto all business license fees, gross receipts taxes and similar taxes and
impositions which may from time to time be assessed against or levied upon
Tenant, as and when the same become due and before delinquency. Notwithstanding
anything to the contrary contained herein, any sums payable by Tenant under this
Article 6 shall not be included in the computation of "Tax Costs."

         USE

         Tenant shall use and occupy the Premises only for the use set forth in
Article 1.G. of the Basic Lease Provisions and shall not use or occupy the
premises or permit the same to be used or occupied for any other purpose without
the prior written consent of Landlord, which consent may be given or withheld in
Landlord's sole and absolute discretion, and Tenant agrees that it will use the
Premises in such a manner so as not to interfere with or infringe the rights of
other tenants in the Project. Tenant shall not violate the laws, statutes,
ordinances and governmental regulations or requirements now in force or which
may hereafter be in force relating to or affection (i) the condition, use or
occupancy of the Premises or the Project excluding structural changes to the
Project not related to Tenant's particular use of the Premises, and (ii)
improvements installed or constructed in the Premises by or for the benefit of
Tenant. Tenant shall not do or permit to be done anything which would invalidate
or increase the cost of any fire and extended coverage insurance policy covering
the Project and/or the property located therein and Tenant shall not violate the
rules, orders, regulations and requirements of any organization which sets out
standards, requirements or recommendations commonly referred to by major fire
insurance underwriters. Tenant shall promptly upon demand reimburse Landlord for
any additional premium charges for any such insurance policy assessed or
increased by reason of Tenant's violation of the provisions of this Article.
Landlord shall take the necessary steps to comply with what Landlord reasonably
believes are the requirements of the Americans

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With Disabilities Act ("ADA") in effect as of the date of this Lease as it
pertains to the common areas within the Project including, without
limitation, restrooms and elevators. Operating Costs shall not include any
cost incurred by Landlord in connection with upgrading the Project to comply
with the requirements of the ADA that are in effect as of the date of this
Lease, including penalties or damages incurred due to such noncompliance.
Tenant shall, at its sole cost and expense, be responsible for complying with
ADA requirements within the Premises following Landlord's delivery of the
Premises to Tenant.

         CONDITION OF PREMISES

         The Premises shall be initially improved as provided in, and subject
to, the Tenant Work Letter attached hereto as Exhibit "D" and made a part
hereof. The taking of possession of the Premises by Tenant shall conclusively
establish that the Premises and the Project were at such time in satisfactory
condition, subject to punch list items and any latent design and construction
defects. Tenant hereby waives Sections 1941 and 1942 of the Civil Code of
California or any successor provision of law.

         Landlord reserves the right from time to time, but subject to payment
by and/or reimbursement from Tenant as otherwise provided herein: (i) to
install, use, maintain, repair, replace and relocate for service to the Premises
and/or other parts of the Project pipes, ducts, conduits, wires, appurtenant
fixtures, and mechanical systems, wherever located in the Premises or the
Project, (ii) to alter, close or relocate any facility in the Premises or the
Common Areas or otherwise conduct any of the above activities for the purpose of
complying with a general plan for fire/life safety for the Project or otherwise
and (iii) to comply with any federal, state or local law, rule or order with
respect thereto or the regulation thereof not currently in effect. Landlord
shall attempt to perform any such work with the least inconvenience to Tenant as
possible, but in no event shall Tenant be permitted to withhold or reduce Basic
Rental or other charges due hereunder as a result of same or otherwise make
claim against Landlord for interruption or interference with Tenant's business
and/or operations.

         REPAIRS AND ALTERATIONS

         Landlord shall maintain the structural portions of the Project
including the foundation, floor/ceiling slabs, roof, curtain wall, exterior
glass, columns, beams, shafts, stairs, stairwells, elevator cabs and common
areas and shall also maintain and repair the basic mechanical, electrical,
lifesafety, plumbing, sprinkler systems and heating, ventilating and
air-conditioning systems (provided, however, that Landlord's obligation with
respect to any such systems shall be to repair and maintain those portions of
the systems located in the core of the Project or in other areas outside of the
Premises, but Tenant shall be responsible to repair and maintain any
distribution of such systems throughout the Premises). Except as expressly
provided as Landlord's obligation in this Article 9, Tenant shall keep the
Premises in good condition and repair. All damage or injury to the Premises or
the Project caused by the act or negligence of Tenant, its employees, agents or
visitors, guests, invitees or licensees or by the use of the Premises shall be
promptly repaired by Tenant, at its sole cost and expense, but only to the
extent such damage or injury is not covered by insurance, to the satisfaction of
Landlord; provided,

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however, that for damage to the Project as a result of casualty, Landlord
shall have the right (but not the obligation) to select the contractor and
oversee all such repairs. Landlord may make any repairs which are not promptly
made by Tenant after Tenant's receipt of written notice and the reasonable
opportunity of Tenant to make said repair within thirty (30) days from receipt
of said written notice, and charge Tenant for the cost thereof, which cost
shall be paid by Tenant within fifteen (15) days from invoice from Landlord.
Tenant shall be responsible for the design and function of all non-standard
improvements of the Premises, whether or not installed by Landlord at Tenant's
request. Tenant waives all rights to make repairs at the expense of Landlord,
or to deduct the cost thereof from the rent. Tenant shall make no alterations,
changes or additions in or to the Premises without Landlord's prior written
consent, and then only by contractors or mechanics approved by Landlord in
writing and upon the approval by Landlord in writing of fully detailed and
dimensioned plans and specifications pertaining to the work in question, to be
prepared and submitted by Tenant at its sole cost and expense. Tenant shall at
its sole cost and expense obtain all necessary approvals and permits
pertaining to any work approved by Landlord. If Landlord, in approving any
work, specifies a Commencement Date therefor, Tenant shall not commence any
work prior to such date. If permitted alterations, changes, or additions are
made, they shall be made at Tenant's sole cost and expense and shall be and
become the property of Landlord, except that Landlord may, by written notice
to Tenant given at least thirty (30) days prior to the end of the Term,
require Tenant at Tenant's expense to remove all partitions, counters,
railings and the like installed by Tenant, and to repair any damages to the
Premises caused by such removal. Any and all costs attributable to or related
to the applicable building codes of the city in which the Project is located
(or any other authority having jurisdiction over the Project) arising from
Tenants plans, specifications, improvements, alterations or otherwise shall be
paid by Tenant at its sole cost and expense. With regard to repairs,
alterations or any other work arising from or related to this Article 9,
Landlord shall be entitled to receive an administrative/supervision fee (which
fee shall vary depending upon whether or not Tenant orders the work directly
from Landlord but which fee shall in no event exceed five percent (5%) of the
cost of such work) sufficient to compensate Landlord for all overhead, general
conditions, fees and other costs and expenses arising from Landlord's
involvement with such work. The construction of initial improvements to the
Premises shall be governed by the terms of the Tenant Work Letter and not the
terms of this Article 9.

         LIENS

         Tenant shall keep the Premises and the Project free from any mechanics'
liens, vendors liens or any other liens arising out of any work performed,
materials furnished or obligations incurred by Tenant. Before commencing any
work of alteration, addition or improvement to the Premises, Tenant shall given
Landlord at least ten (10) business days' written notice of the proposed
commencement of such work (to afford Landlord an opportunity to post appropriate
notices of non-responsibility). In the event that there shall be recorded
against the Premises or the Project or the property of which the Premises is a
part any claim or lien arising out of any such work performed, materials
furnished or obligations incurred by Tenant and such claim or lien shall not be
removed or discharged by Tenant within thirty (30) days of notice by Tenant to
Landlord, Landlord shall have the right but not the obligation to pay and
discharge said lien without regard to whether such lien shall be lawful or
correct or to require that Tenant deposit

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with Landlord in cash, lawful money of the United States, on hundred fifty
percent (150%) of the amount of such claim, which sum may be retained by
Landlord until such claim shall have been removed of record or until judgment
shall have been rendered on such claim and such judgment shall have become
final, at which time Landlord shall have the right to apply such deposit in
discharge of the judgment on said claim and any costs, including attorneys'
fees incurred by Landlord, and shall remit the balance thereof to Tenant.

         PROJECT SERVICES

         Landlord agrees to furnish to the Premises, at a cost to be included in
                  Operating Costs, from 8:00 a.m. to 6:00 p.m. Mondays through
                  Fridays and 9:00 a.m. to 1:00 p.m. on Saturdays, excepting
                  local and national holidays, air conditioning and heat all in
                  such reasonable quantities as in the judgment of Landlord is
                  reasonably necessary for the comfortable occupancy of the
                  Premises. In addition, Landlord shall provide electric current
                  for normal lighting and normal office machines, elevator
                  service and water on the same floor as the Premises for
                  lavatory and drinking purposes in such reasonable quantities
                  as in the judgment of Landlord is reasonably necessary for
                  general office use. Janitorial and maintenance services shall
                  be furnished five (5) days per week, excepting local and
                  national holidays. Tenant shall comply with all rules and
                  regulations which Landlord may reasonably establish for the
                  proper functioning and protection of the common area air
                  conditioning, heating, elevator, electrical intrabuilding
                  network cable and plumbing systems. Landlord shall not be
                  liable for, and there shall be no rent abatement as a result
                  of, any stoppage, reduction or interruption of any such
                  services caused by governmental rules, regulations or
                  ordinances, riot, strike, labor disputes, breakdowns,
                  accidents, necessary repairs or other cause. Except as
                  specifically provided in this Article 11, Tenant agrees to pay
                  for all utilities and other services utilized by Tenant and
                  additional building services furnished to Tenant not uniformly
                  furnished to all tenants of the Project at the rate generally
                  charged by Landlord to tenants of the Project.

         Tenant will not, without the prior written consent of Landlord, use
                  any apparatus or device in the Premises which will in any way
                  increase the amount of electricity or water usually furnished
                  or supplied for use of the Premises as general office space;
                  nor connect any apparatus, machine or device with water pipes
                  or electric current (except through existing electrical
                  outlets in the Premises), for the purpose of using electric
                  current or water.

         If Tenant shall require electric current in excess of that which
                  Landlord is obligated to furnish under Article 11(b) above,
                  Tenant shall first obtain the written consent of Landlord,
                  which Landlord may refuse in its sole and absolute discretion,
                  to the use thereof and Landlord may cause an electric current
                  meter or submeter to be installed in the Premises to measure
                  the amount of such excess electric current consumed by Tenant
                  in the Premises. The cost of any such meter and of
                  installation, maintenance and repair thereof shall be paid for
                  by Tenant and

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                  Tenant agrees to pay to Landlord, promptly upon demand
                  therefore by Landlord, for all such excess electriccurrent
                  consumed by any such use as shown by said meter at the
                  rates charged for such service by the city in which the
                  Project is located or the local public utility, as the case
                  may be, furnishing the same, plus any additional expense
                  incurred by Landlord in keeping account of the electric
                  current so consumed.

         If any lights, machines or equipment (including by not limited to
                  computers) are used by Tenant in the Premises which materially
                  affect the temperature otherwise maintained by the air
                  conditioning system, or generate substantially more heat in
                  the Premises than would be generated by the building standard
                  lights and usual office equipment, Landlord shall have the
                  right to install any machinery and equipment which Landlord
                  reasonably deems necessary to restore temperature balance,
                  including but not limited to modifications to the standard air
                  conditioning equipment, and the cost thereof, including the
                  cost of installation and any additional cost of operation and
                  maintenance occasioned thereby, shall be paid by Tenant to
                  Landlord upon demand by Landlord. Landlord shall not be liable
                  under any circumstances for loss of or injury to property,
                  however occurring, through or in connection with or incidental
                  to failure to furnish any of the foregoing.

         If Tenant requires heating, ventilation and/or air conditioning during
                  times other than the times provided in Article 11(a) above,
                  Tenant shall given Landlord such advance notice as Landlord
                  shall reasonably require and shall pay Landlord's standard
                  charge for such after-hours use.

         Landlord may impose a reasonable charge for any utilities or services
                  (other than electric current and heating, ventilation and/or
                  air conditioning which shall be governed by Articles 11(c) and
                  (e) above) utilized by Tenant in excess of the amount or type
                  that Landlord reasonably determines is typical for the use set
                  forth in Article 1.G. of this Lease.

         In the event that Tenant is prevented from using, and does not use, the
                  Premises or any portion thereof, as a result of any failure to
                  provide services or access to the Premises (an "Abatement
                  Event"), then Tenant shall give Landlord notice ("Abatement
                  Notice") of such Abatement Event, and if such Abatement Event
                  continues beyond the "Eligibility Period" (as that term is
                  defined below), then the Basic Rental and Tenant's
                  Proportionate Share of Direct Costs and Tenant's obligation to
                  pay for parking shall be abated entirely or reduced, as the
                  case may be, after expiration of the Eligibility Period for
                  such time that Tenant continues to be so prevented from using,
                  and does not use, the Premises or a portion thereof, in the
                  proportion that the rentable area of the portion of the
                  Premises that Tenant is prevented from using, and does not
                  use, bears to the total rental area of the Premises; provided,
                  however, in the event that Tenant is prevented from using, and
                  does not use, a portion o the Premises for a period of time in
                  excess of the Eligibility Period and the remaining portion of
                  the Premises is not sufficient to allow Tenant to effectively
                  conduct its business therein, and if Tenant does not

                                      15
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<PAGE>

                  conduct its business from such remaining portion, then for
                  such time after expiration of the Eligibility Period
                  during which Tenant is so prevented from effectively
                  conduction its business therein, the Basic Rental and
                  Tenant's Proportionate Share of Direct Costs and Tenant's
                  obligation to pay for parking for the entire Premises shall
                  be abated entirely for such time as Tenant continues to be
                  so prevented from using, and does not use, the Premises.
                  If, however, Tenant reoccupies any portion of the Premises
                  during such period, the rent allocable to such reoccupied
                  portion, based on the proportion that the rentable area of
                  such reoccupied portion of the Premises bears to the total
                  rentable area of the Premises, shall be payable by Tenant
                  from the date Tenant reoccupies such portion of the
                  Premises. The term "Eligibility Period" shall mean a period
                  of five (5) consecutive business days after Landlord's
                  receipt of any Abatement Notice(s). Such right to abate
                  Basic Rental and Tenant's Proportionate Share of Direct
                  Costs shall be Tenant's sole and exclusive remedy at law or
                  in equity for an Abatement Event.

         RIGHTS OF LANDLORD

         Landlord and its agents shall have the right to enter the Premises at
all reasonable times for the purpose of cleaning the Premises, examining or
inspecting the same, serving or posting and keeping posted thereon notices as
provided by law, or which Landlord deems necessary for the protection of
Landlord or the Property, showing the same to prospective tenants or purchasers
of the Project, in the case of an emergency, and for making such alterations,
repairs, improvements or additions to the Premises or to the Project as Landlord
may deem necessary or desirable. If Tenant shall not be personally present to
open and permit an entry into the Premises at any time when such an entry by
Landlord is necessary or permitted hereunder, Landlord may enter by means of a
master key or may enter forcibly, only in the case of an emergency, without
liability to Tenant and without affecting this Lease. In exercising its rights
under Article 12, Landlord shall use commercially reasonable efforts to minimize
interference with Tenant's operations in the Premises.

         INDEMNITY; EXEMPTION OF LANDLORD FROM LIABILITY

         INDEMNITY. Tenant shall indemnify, defend and hold Landlord harmless
                  from (i) any and all claims arising from Tenant's use of the
                  Premises or the Project or from the conduct of its business or
                  from any activity, work or thing which may be permitted or
                  suffered by Tenant in or about the Premises or the Project,
                  (ii) any and all claims arising from any breach or default in
                  the performance of any obligation on Tenant's part to be
                  performed under this Lease or arising from any negligence of
                  Tenant or any of its agents, contractors, employees or
                  invitees, patrons, customers or members in or about the
                  Project, (iii) any and all costs, attorneys' fees, expenses
                  and liabilities incurred in the defense of any claim or any
                  action or proceeding brought thereon, including negotiations
                  in connection therewith, (iv) all liens and claims of lien,
                  and all other liability, claims and

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                  demands arising out of any work done or material supplied
                  to the Premises by or at the request of Tenant, (v) any and
                  all claims, judgments, damages, penalties, fines, costs,
                  liabilities, or losses (including, without limitation,
                  diminution in value of the Project, damages for the loss or
                  restriction or use of rentable or usable space or of any
                  amenity of the Project, damages arising from any adverse
                  impact or marketing of space in the Project, and sums paid
                  in settlement of claims, attorneys' fees, consultant fees,
                  and expert fees) which arise during or after the Term of
                  this Lease as a result of Tenant's breach of the provisions
                  of Section 28(a) of this Lease, which indemnification of
                  Landlord by Tenant includes, without limitation, costs
                  incurred in connection with any investigation of site
                  conditions or any cleanup, remedial, removal or restoration
                  work required by any federal, state, or local governmental
                  agency or political subdivision because of Hazardous
                  Material present in the soil or ground water on or under
                  the Project, and (vi) any such lien or claim or action
                  thereon, together with costs of suit and reasonable
                  attorneys' fees incurred by Landlord in connection with any
                  such claim or action. Tenant hereby assumes all risk of
                  damage to property or injury to persons in or about the
                  Premises from any cause, and Tenant hereby waives all
                  claims in respect thereof against Landlord; provided that
                  Tenant shall not be required to indemnify and/or hold
                  Landlord harmless from any loss, cost, liability, damage or
                  expense, including, but not limited to, penalties, fines,
                  attorneys' fees or costs (collectively, "Claims"), to any
                  person, property or entity resulting from the negligence or
                  willful misconduct of Landlord or its agents, contractors,
                  or employees, in connection with Landlord's activities in
                  the Project (except for damage to the Tenant Improvements
                  and Tenant's personal property, fixtures, furniture and
                  equipment in the Premises, to the extent Tenant is required
                  to obtain the requisite insurance coverage pursuant to this
                  Lease), the Landlord hereby so indemnifies and hold Tenant
                  harmless from any such Claims; provided further that
                  because Landlord maintains insurance on the Project and
                  Tenant compensates Landlord for such insurance as part of
                  Tenant's Proportionate Share of Direct Costs and because of
                  the existence of waivers of subrogation set forth in
                  Article 14 of this Lease, Landlord hereby indemnifies and
                  holds Tenant harmless from any Claims to any property
                  outside of the Premises to the extent such Claim is covered
                  by such insurance, even if resulting from the negligent
                  acts, omissions, or willful misconduct of Tenant or those
                  of its agents contractors, or employees. Similarly, since
                  Tenant must carry insurance pursuant to Article 14 to cover
                  its personal property within the Premises and the Tenant
                  Improvements, Tenant hereby indemnifies and holds Landlord
                  harmless from any Claim to any property within the
                  Premises, to the extent such Claim is covered by such
                  insurance, even if resulting from the negligent acts,
                  omissions or willful misconduct of Landlord or those of its
                  agents, contractors, or employees.

         EXEMPTIONOF LANDLORD FROM LIABILITY. Landlord shall not be liable for
                  injury to Tenant's business, or loss of income therefrom, or
                  from damage that may be sustained by the person, goods, wares,
                  merchandise or property of Tenant, its employees, invitees,
                  customers, agents, or contractors, or any other person in, on
                  or about the Premises directly or indirectly caused by or
                  resulting from fire, steam, electricity,

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                  gas, water or rain which may leak or flow from or into any
                  part of the Premises, or from the breakage, leakage,
                  obstruction or other defects of the pipes, sprinklers,
                  wires, appliances, plumbing, air conditioning, light
                  fixtures, or mechanical or electrical systems or from
                  intrabuilding network cable, whether such damage or injury
                  results from conditions arising upon the Premises or upon
                  other portions of the Project or from other sources or
                  places and regardless of whether the cause of such damage
                  or injury or the means or repairing the same is
                  inaccessible to Tenant, except in connection with damage or
                  injury resulting from the gross negligence or willful
                  misconduct of Landlord, or its authorized agents. Landlord
                  shall not be liable to Tenant for any damages arising form
                  any act or neglect of any other tenant of the building.

         Tenant acknowledges that Landlord's election to provide mechanical
surveillance or to post security personnel in the Project is solely within
Landlord's discretion; Landlord shall have no liability in connection with the
decision whether or not to provide such services and Tenant hereby waives all
claims based thereon. Landlord shall not be liable for losses due to theft,
vandalism, or like causes.

         INSURANCE

         TENANT'S INSURANCE. Tenant shall, at all times during the Term of this
                  Lease, and at its own costs and expense, procure and continue
                  in force the following insurance coverage: (i) Commercial
                  General Liability Insurance with a combined single limit for
                  bodily injury and property damages of not less than One
                  Million Dollars ($1,000,000) per occurrence and Two Million
                  Dollars ($2,000,000) in the annual aggregate, including
                  products liability coverage if applicable, covering the
                  insuring provisions of this Lease and the performance of
                  Tenant of the indemnity and exemption of Landlord from
                  liability agreements set forth in Article 13 hereof; (ii) a
                  policy of standard fire, extended coverage and special
                  extended coverage insurance (al risks), including a vandalism
                  and malicious mischief endorsement, sprinkler leakage coverage
                  and earthquake sprinkler leakage where sprinklers are provided
                  in an amount equal to the full replacement value new without
                  deduction for depreciation of all (A) Tenant Improvements,
                  alterations, fixtures and other improvements in the Premises
                  and (B) trade fixtures, furniture, equipment and other person
                  property installed by or at the expense of Tenant; (iii)
                  Worker's Compensation coverage as required by law; and (iv)
                  business interruption, loss of income and extra expense
                  insurance covering failure of Tenant's telecommunications
                  equipment and covering all other perils, failures or
                  interruptions. Tenant shall carry and maintain during the
                  entire Lease Term (including any option periods, if
                  applicable), at Tenant's sole cost and expense, increased
                  amounts of the insurance required to be carried by Tenant
                  pursuant to this Article 14 and such other reasonable types of
                  insurance coverage and in such reasonable amounts covering the
                  Premises and Tenant's operations therein, as may be reasonably
                  required by Landlord.

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         FORM OF POLICIES. The aforementioned minimum limits of policies and
                  Tenant's procurement and maintenance thereof shall in no event
                  limit the liability of Tenant hereunder. The Commercial
                  General Liability Insurance policy shall name Landlord,
                  Landlord's property manager, Landlord's lender(s) and such
                  other persons or firms as Landlord specifies from time to
                  time, as additional insureds; with an appropriate endorsement
                  to the policy(s). All such insurance policies carried by
                  Tenant shall be with companies having a rating of not less
                  than A-VIII in Best's Insurance Guide. Tenant shall furnish to
                  Landlord, from the insurance companies, or cause the insurance
                  companies to furnish, certificates of coverage. No such policy
                  shall be cancelable or subject to reduction of coverage or
                  other modification or cancellation except after thirty (30)
                  days prior written notice to Landlord by the insurer. All such
                  policies shall be endorsed to agree that Tenant's policy is
                  primary and that any insurance covered by Landlord is excess
                  and not contributing with any Tenant insurance requirement
                  hereunder. Tenant shall, at least twenty (20) days prior to
                  the expiration of such policies, furnish Landlord with
                  renewals or binders. Tenant agrees that if Tenant does not
                  take out and maintain such insurance or furnish Landlord with
                  renewals or binders, Landlord may (but shall not be required
                  to) procure said insurance on Tenant's behalf and charge
                  Tenant the cost thereof, which amount shall be payable by
                  Tenant upon demand with interest from the date such sums are
                  extended. Tenant shall have the right to provide such
                  insurance coverage pursuant to blanket policies obtained by
                  Tenant, provided such blanket policies expressly afford
                  coverage to the Premises and to Tenant as required by this
                  Lease.

         LANDLORD'S INSURANCE. Landlord shall, as a cost to be included in
                  Operating Costs, procure and maintain at all times during the
                  Term of this Lease, a policy or policies of insurance covering
                  loss or damage to the Project in the amount of the full
                  replacement costs without deduction for depreciation thereof
                  (exclusive of Tenant's trade fixtures, inventory, personal
                  property and equipment), providing protection against all
                  perils included within the classification of fire and extended
                  coverage, vandalism coverage and malicious mischief, sprinkler
                  leakage, water damage, and special extended coverage on
                  building. Additionally, Landlord may (but shall not be
                  required to) carry: (i) Bodily Injury and Property Damage
                  Liability Insurance and/or Excess Liability Coverage
                  Insurance; and (ii) Earthquake and/or Flood Damage Insurance;
                  and (iii) Rental Income Insurance at its election or if
                  required by its lender from time to time during the Term
                  hereof, in such amounts and with such limits as Landlord or
                  its lender may deem appropriate. The costs of such insurance
                  shall be included in Operating Costs.

         WAIVER OF SUBROGATION. Landlord and Tenant each agree to have their
                  respective insurers issuing the insurance described in
                  Sections 14(a)(ii), 14(a)(iv) and the first sentence of
                  Section 14(c) waive any rights of subrogation that such
                  companies may have against the other party. Tenant hereby
                  waives any right that Tenant may have against Landlord and
                  Landlord hereby waives any right that Landlord

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                  may have against Tenant as a result of any loss or damage
                  to the extent such loss or damage is insurable under such
                  policies.

         COMPLIANCE WITH LAW. Tenant agrees that it will not, at any time,
                  during the Term of this Lease, carry any stock of goods or do
                  anything in or about the Premises that will in any way tend to
                  increase the insurance rates upon the Project. Tenant agrees
                  to pay Landlord forthwith upon demand the amount of any
                  increase in premiums for insurance against loss by fire that
                  may be charged during the Term of this Lease on the amount of
                  insurance to be carried by Landlord on the Project resulting
                  from the foregoing, or from Tenant doing any act in or about
                  said Premises that does so increase the insurance rates,
                  whether or not Landlord shall have consented to such act on
                  the part of Tenant. If Tenant installs upon the Premises any
                  electrical equipment which constitutes an overload of
                  electrical lines of the Premises, Tenant shall at its own cost
                  and expense in accordance with all other Lease provisions, and
                  subject to the provisions of Article 9, 10 and 11, hereof,
                  make whatever changes are necessary to comply with
                  requirements of the insurance underwriters and any
                  governmental authority having jurisdiction thereover, but
                  nothing herein contained shall be deemed to constitute
                  Landlord's consent to such overloading. Tenant shall, at its
                  own expense, comply with all requirements of the insurance
                  authority having jurisdiction over the Project necessary for
                  the maintenance of reasonable fire and extended coverage
                  insurance for the Premises, including without limitation
                  thereto, the installation of fire extinguishers or an
                  automatic dry chemical extinguishing system.

         ASSIGNMENT AND SUBLETTING

         Tenant shall have no power to, either voluntarily, involuntarily, by
operation of law or otherwise, sell, assign, transfer or hypothecate this Lease,
or sublet the Premises or any part thereof, or permit the Premises or any part
thereof to be used or occupied by anyone other than Tenant or Tenant's employees
without the prior written consent of Landlord which shall not be unreasonably
withheld. If Tenant is a corporation, unincorporated association, partnership or
limited liability company, the sale, assignment, transfer or hypothecation of
any class of stock or other ownership interest in such corporation, association,
partnership or limited liability company in excess of twenty-five percent (25%)
in the aggregate shall be deemed an assignment within the meaning and provisions
of this Article 15. Tenant may transfer its interest pursuant to this Lease only
upon the following express conditions, which conditions are agreed by Landlord
and Tenant to be reasonable:

         That the proposed transferee shall be subject to the prior written
                  consent of Landlord, which consent will not be unreasonably
                  withheld but, without limiting the generality of the
                  foregoing, it shall be reasonable for Landlord to deny such
                  consent if:

                  The use to be made of the Premises by the proposed transferee
                           is (a) not generally consistent with the character
                           and nature of all other tenancies in the Project, or
                           (b) a use which conflicts with any so-called
                           "exclusive" then in

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                           favor of, or for any use which is the same as that
                           stated in any percentage rent lease to, another
                           tenant of the Project or any other buildings which
                           are in the same complex as the Project, or (c) a use
                           which would be prohibited by any other portion of
                           this Lease (including but not limited to any rules
                           and Regulations then in effect); or

                  The financial responsibility of the proposed transferee is not
                           reasonably satisfactory to Landlord or in any event
                           not at least equal to those which were possessed by
                           Tenant as of the date of execution of this Lease;

         Whether  or not Landlord consents to any such transfer, Tenant shall
                  pay to Landlord Landlord's then standard processing fee and
                  reasonable attorneys' fees incurred in connection with the
                  proposed transfer up to the aggregate sum of $1,500.00;

         Thatthe proposed transferee shall execute an agreement pursuant to
                  which it shall agree to perform faithfully and be bound by all
                  of the terms, covenants, conditions, provisions and agreements
                  of this Lease applicable to that portion of the Premises so
                  transferred; and

         That an executed duplicate original of said assignment and assumption
                  agreement or other transfer on a form reasonably approved by
                  Landlord, shall be delivered to Landlord within fifteen (15)
                  days after the execution thereof, and that such transfer shall
                  not be binding upon Landlord until the delivery thereof to
                  Landlord and the execution and delivery of Landlord's consent
                  thereto. It shall be a condition to Landlord's consent to any
                  subleasing, assignment or other transfer of part or all of
                  Tenant's interest in the Premises hereinafter referred to as a
                  "Transfer") that (i) upon Landlord's consent to any Transfer,
                  Tenant shall pay and continue to pay fifty percent (50%) of
                  any "Transfer Premium" (defined below), received by Tenant
                  from the transferee; (ii) any sublessee of part or all of
                  Tenant's interest in the Premises shall agree that in the
                  event Landlord gives such sublessee notice that Tenant is in
                  default under this Lease, such sublessee shall thereafter make
                  all sublease or other payments directly to Landlord, which
                  will be received by Landlord without any liability whether or
                  honor the sublease or otherwise (except to credit such
                  payments against sums due under this Lease), and any sublessee
                  shall agree to attorn to Landlord or its successors and
                  assigns at their request should this Lease be terminated for
                  any reason, except that in no event shall Landlord or its
                  successors as assigns be obligated to accept such attornment;
                  (iii) any such Transfer and consent shall be effected on forms
                  supplied by Landlord and/or its legal counsel; (iv) Landlord
                  may require that Tenant not then be in default hereunder in
                  any respect; and (v) Tenant or the proposed subtenant or
                  assignee (collectively, "Transferee") shall agree to pay
                  Landlord, upon demand, as additional rent, a sum equal to the
                  additional costs, if any, incurred by Landlord for maintenance
                  and repair as a result of any change in the nature of
                  occupancy caused by such subletting or assignment. "Transfer
                  Premium" shall mean all rent, additional rent or other
                  consideration payable by a Transferee in connection with a
                  Transfer in excess of the rent and Additional Rent payable by
                  Tenant under this

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                  Lease during the term of the Transfer and if such Transfer
                  is less than all of the Premises, the Transfer Premium
                  shall be calculated on a rentable square foot basis.
                  "Transfer Premium" shall also include, but not be limited
                  to, key money, bonus money or other cash consideration paid
                  by a transferee to Tenant in connection with such Transfer,
                  and any payment in excess of fair market value for services
                  rendered by Tenant to the Transferee and any payment in
                  excess of fair market value for assets, fixtures,
                  inventory, equipment, or furniture transferred by Tenant to
                  the Transferee in connection with such Transfer. Any sale
                  assignment, hypothecation, transfer or subletting of this
                  Lease which is not in compliance with the provisions of
                  this Article 15 shall be void and shall, at the option of
                  Landlord, terminate this Lease. In no event shall the
                  consent by Landlord to an assignment or subletting be
                  construed as relieving Tenant, any assignee, or sublessee
                  from obtaining the express written consent of Landlord to
                  any further assignment or subletting, or as releasing
                  Tenant from any liability or obligation hereunder whether
                  or not then accrued and Tenant shall continue to be fully
                  liable therefor. No collection r acceptance of rent by
                  Landlord from any person other than Tenant shall be deemed
                  a waiver of any provision of this Article 15 or the
                  acceptance of any assignee or subtenant hereunder, or a
                  release of Tenant (or of any successor of Tenant or any
                  subtenant). Notwithstanding anything to the contrary in
                  this Lease, if Tenant or any proposed Transferee claims
                  that Landlord has unreasonably withheld or delayed its
                  consent under this Article 15 or otherwise has breached or
                  acted unreasonably under this Article 15, their sole
                  remedies shall be a declaratory judgment and an injunction
                  for the relief sought without any monetary damages, and
                  Tenant hereby waives all other remedies, including, without
                  limitation, any right at law or equity to terminate this
                  Lease, on its own behalf and, to the extent permitted under
                  all applicable laws, on behalf of the proposed Transferee.

         Notwithstanding anything to the contrary contained in this Article 15,
Landlord shall have the option, by giving written notice to Tenant within thirty
(30) days after Landlord's receipt of a request for consent to a proposed
Transfer, to terminate this Lease as to the portion of the Premises that is the
subject of the Transfer for the period of the proposed Transfer. If this Lease
is so terminated with respect to less than the entire Premises, the Basic Rental
and Tenant's Proportionate Share shall be prorated based on the number of
rentable square feet retained by Tenant as compared to the total number of
rentable square feet contained in the original Premises, and this Lease as so
amended shall continue thereafter in full force and effect, and upon the request
of either party, the parties shall execute written confirmation of the same.

         Notwithstanding anything to the contrary contained in this Article 15,
                  an assignment or subletting of all or a portion of the
                  Premises to an affiliate of Tenant (an entity which is
                  controlled by, controls, or is under common control with
                  Tenant), shall not require Landlord's consent and shall not
                  otherwise be subject to the provisions of this Article 15,
                  provided that Tenant notifies Landlord of any such assignment
                  or sublease and promptly supplies Landlord with any documents
                  or information requested by Landlord regarding such assignment
                  or sublease or such affiliate, and further provided that such
                  assignment or sublease is not a subterfuge by

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                  Tenant to avoid its obligations under this Lease. The term
                  "control" as used in this Section 15(e) shall mean the
                  ownership, directly or indirectly, of greater than fifty
                  percent (50%) of the voting securities of, or possession of,
                  in the ordinary direction of affairs, at least fifty-one
                  percent (51%) of the voting interest in, any entity.

         DAMAGE OR DESTRUCTION

         If the Project is damaged by fire or other insured casualty and the
insurance proceeds have been made available therefor by the holder or holders
of any mortgages or deeds of trust covering the Premises or the Project, the
damage shall be repaired by Landlord to the extent such insurance proceeds are
available therefor and provided such repairs can, in Landlord's sole opinion,
be completed within one hundred eighty (180) days after the necessity for
repairs as a result of such damage becomes known to Landlord without the
payment of overtime or other premiums, and until such repairs are completed
rent shall be abated in proportion to the part of the Premises which is
unusable by Tenant in the conduct of its business (but there shall be no
abatement of rent by reason of any portion of the Premises being unusable for
a period equal to one (1) day or less). Upon the occurrence of any damage to
the Premises, Tenant shall assign to Landlord (or to any party designated by
Landlord) all insurance proceeds payable to Tenant under Section 14(a)(ii)(A)
above; provided, however, that if the cost of repair of improvements within
the Premises by Landlord exceeds the amount of insurance proceeds received by
Landlord from Tenant's insurance carrier, as so assigned by Tenant, such
excess costs shall be paid by Tenant to Landlord prior to Landlord's repair of
such damage. Within sixty (60) days after the date Landlord learns of the
necessity for repairs as a result of damage, Landlord shall notify Tenant
("Damage Repair Estimate") of Landlord's estimated assessment of the period of
time in which the repairs will be completed. If repairs cannot, in Landlord's
opinion, be completed within one hundred eighty (180) days after the necessity
for repairs as a result of such damage becomes known to Landlord without the
payment of overtime or other premiums, Landlord may, at its option, either (i)
make them in a reasonable time and in such event this Lease shall continue in
effect and the rent shall be abated, if at all, in the manner provided in this
Article 16, or (ii) elect not to effect such repairs and instead terminate
this Lease, by notifying Tenant in writing of such termination within sixty
(60) days after Landlord learns of the necessity for repairs as a result of
damage, such notice to include a termination date giving Tenant sixty (60)
days to vacate the Premises. In addition, Landlord may elect to terminate this
Lease if the Project shall be damaged by fire or other casualty or cause,
whether or not the Premises are affected, and the damage is not fully covered,
except for deductible amounts, by Landlord's insurance policies. However, if
Landlord does not elect to terminate this Lease pursuant to Landlord's
termination right as provided above, and the Damage Repair Estimate indicates
that repairs cannot be completed within one hundred eighty (180) days after
being commenced, Tenant may elect, not later than thirty (30) days after
Tenant's receipt of the Damage Repair Estimate, to terminate this Lease by
written notice to Landlord effective as of the date specified in Tenant's
notice. Finally, if the Premises or the Project is damaged to any substantial
extent during the last twelve (12) months of the Term, then notwithstanding
anything contained in this Article 16 to the contrary, Landlord shall have the
option to terminate this Lease by giving written notice to Tenant of the
exercise of such option within sixty (60) days after Landlord

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learns of the necessity for repairs as the result of such damage. In the event
that the Premises or the Project is destroyed or damaged to any substantial
extent during the last twelve (12) months of the Lease Term and if such damage
shall take longer than ninety (90) days to repair and if such damage is not
the result of negligence or willful misconduct of Tenant or Tenant's
employees, licensees, invitees or agents, then notwithstanding anything in
this Article 16 to the contrary, Tenant shall have the option to terminate
this Lease by written notice to Landlord of the exercise of such option within
sixty (60) days after Tenant learns of the necessity for repairs as the result
of such damage. A total destruction of the Project shall automatically
terminate this Lease. Except as provided in this Article 16, there shall be no
abatement of rent and no liability of Landlord by reason of any injury to or
interference with Tenant's business or property arising from such damage or
destruction or the making of any fixtures, appurtenances and equipment
therein. Tenant understands that Landlord will not carry insurance of any kind
on Tenant's furniture, furnishings, trade fixtures or equipment, and that
Landlord shall not be obligated to repair any damage thereto or replace the
same. Except for proceeds relating to Tenant's furniture, furnishings, trade
fixtures and equipment, Tenant acknowledges that Tenant shall have no right to
any proceeds of insurance relating to property damage. With respect to any
damage which Landlord is obligated to repair or elects to repair, Tenant, as a
material inducement to Landlord entering into this Lease, irrevocably waives
and releases its rights under the provisions of Sections 1932 and 1933 of the
California Civil Code.

         SUBORDINATION

         This Lease is subject and subordinate to all ground or underlying
leases, mortgages and deeds of trust which affect the property or the Project,
including all renewals, modifications, consolidations, replacements and
extensions thereof; provided, however, if the lessor under any such lease or
the holder or holders of any such mortgage or deed of trust shall advise
Landlord that they desire or require this Lease to be prior and superior
thereto, upon written request of Landlord to Tenant, Tenant agrees to promptly
execute, acknowledge and deliver any and all documents or instruments which
Landlord or such lessor, holder or holders deem necessary or desirable for
purposes thereof. Landlord shall have the right to cause this Lease to be and
become and remain subject and subordinate to any and all ground or underlying
leases, mortgages or deeds of trust which may hereafter be executed covering
the Premises, the Project or the property or any renewals, modifications,
consolidations, replacements or extensions thereof, for the full amount of all
advances made or to be made thereunder and without regard to the time or
character of such advances, together with interest thereon and subject to all
the terms and provisions thereof; provided, however, that Landlord obtains
from the lender or other party in question a written undertaking in favor of
Tenant to the effect that such lender or other party will not disturb Tenant's
right of possession under this Lease if Tenant is not then or thereafter in
breach of any covenant or provision of this Lease. Tenant agrees, within
thirty (30) days after Landlord's written request therefor, to execute,
acknowledge and deliver upon request any and all documents or instruments
requested by Landlord or necessary or proper to assure the subordination of
this Lease to any such mortgages, deed of trust, or leasehold estates. Tenant
agrees that in the event any proceedings are brought for the foreclosure of
any mortgage or deed of trust or any deed in lieu thereof, to attorn to the
purchaser or any successors thereto upon any such foreclosure sale or deed in
lieu thereof as so requested to do so by such purchaser and to

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<PAGE>

recognize such purchaser as the lessor under this Lease; Tenant shall, within
ten (10) days after request execute such further instruments or assurances as
such purchaser may reasonably deem necessary to evidence or confirm such
attornment. Tenant agrees to provide copies of any notices of Landlord's
default under this Lease to any mortgagee or deed of trust beneficiary whose
address has been provided to Tenant and Tenant shall provide such mortgagee or
deed of trust beneficiary, after receipt of such notice, the same amount of
time provided to Landlord under this Lease within which to cure any such
default. Tenant waives the provisions of any current or future statute, rule
of law which may give or purport to give Tenant any right or election to
terminate or otherwise adversely affect this Lease and the obligations of the
Tenant hereunder in the event of any foreclosure proceeding or sale.

         EMINENT DOMAIN

         If the whole of the Premises or the Project, or so much thereof as to
render the balance unusable by Tenant or so as to render the remaining
Premises unsuitable for the purpose specified in Article 1.G., shall be taken
under power of eminent domain, or is sold, transferred or conveyed in lieu
thereof, this Lease shall automatically terminate as of the date of such
condemnation. No award for any partial or entire taking shall be apportioned,
and Tenant hereby assigns to Landlord any award which may be made in such
taking or condemnation, together with any and all rights of Tenant now or
hereafter arising in or to the same or any part thereof; provided, however,
that nothing contained herein shall be deemed to give Landlord any interest in
or to require Tenant to assign to Landlord any award made to Tenant for the
taking of personal property and trade fixtures belonging to Tenant and
removable by Tenant at the expiration of the Term hereof as provided hereunder
or for the interruption of, or damage to, Tenant's business. In the event of a
partial taking described in this Article 18, or a sale, transfer or conveyance
in lieu thereof, which does not result in a termination of this Lease, the
rent shall be apportioned according to the ratio that the part of the Premises
remaining usable by Tenant bears to the total area of the Premises. Tenant
hereby waives any and all rights it might otherwise have pursuant to Section
1265.130 of the Code of Civil Procedure.

         DEFAULT

         Each of the following acts or omissions of Tenant or of any guarantor
of Tenant's performance hereunder, or occurrences, shall constitute an "Event
of Default":

         Failure or refusal to pay Basic Rental, Additional Rent or any other
                  amount to be paid by Tenant to Landlord hereunder within ten
                  (10) calendar days after written notice that the same is due
                  or payable hereunder; said ten (10) day period shall be in
                  lieu of, and not in addition to, the notice requirements of
                  Section 1161 of the California Code of Civil Procedure or any
                  similar or successor law;

         Except as set forth in items (a) above and (c) through and including
                  (f) below, failure to perform or observe any other covenant or
                  condition of this Lease to be performed or observed within
                  thirty (30) days following written notice to Tenant of such
                  failure; provided, however that if the nature of such default
                  is such that the same

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<PAGE>

                  cannot be reasonably cured within a thirty (30) day period,
                  Tenant shall not be deemed to be in default if it diligently
                  commences such cure within such period and thereafter
                  diligently proceeds to cure such default. Such thirty (30)
                  day notice shall be in lieu of, and not in addition to, any
                  required under Section 1161 of the California Code of Civil
                  Procedure or any similar or successor law;

         The taking in execution or by similar process or law (other than by
                  eminent domain) of the estate hereby created;

         The filing by Tenant or any guarantor hereunder in any court pursuant
                  to any statute of a petition in bankruptcy or insolvency or
                  for reorganization or arrangement for the appointment of a
                  receiver of all or a portion of Tenant's property; the filing
                  against Tenant or any guarantor hereunder of any such
                  petition, or the commencement of a proceeding for the
                  appointment of a trustee, receiver or liquidator for Tenant,
                  or for any guarantor hereunder, or of any of the property of
                  either, or a proceeding by any governmental authority for the
                  dissolution or liquidation of Tenant or any guarantor
                  hereunder, if such proceeding shall not be dismissed or
                  trusteeship discontinued within thirty (30) days after
                  commencement of such proceeding or the appointment of such
                  trustee or receiver; or the making by Tenant or any guarantor
                  hereunder of an assignment for the benefit of creditors.
                  Tenant hereby stipulates to the lifting of the automatic stay
                  in effect and relief from such stay for Landlord in the event
                  Tenant files a petition under the United States Bankruptcy
                  laws, for the purpose of Landlord pursuing its rights and
                  remedies against Tenant and/or a guarantor of this Lease;

         Tenant's failure to cause to be released any mechanics liens filed
                  against the Premises or the Project within twenty (20) days
                  after the date the same shall have been filed or recorded; or

         Tenant's failure to observe or perform according to the provisions of
                  Articles 17 or 25 within five (5) business days after notice
                  from Landlord.

         All defaults by Tenant of any covenant or condition of this Lease
shall be deemed by the parties hereto to be material.

         REMEDIES

         Upon the occurrence of an Event of Default under this Lease as provided
                  in Article 19 hereof, Landlord may exercise all of its
                  remedies as may be permitted by law, including but not limited
                  to the remedy provided by Section 1951.4 of the California
                  Civil Code, and including without limitation, terminating this
                  Lease, reentering the premises and removing all persons and
                  property therefrom, which property may be stored by Landlord
                  at a warehouse or elsewhere at the risk, expense and for the
                  account of Tenant. If Landlord elects to terminate this Lease,
                  Landlord shall be entitled to recover from Tenant the
                  aggregate of all amounts permitted by law, including but not
                  limited to (i) the worth at the time of the

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                  amount of any unpaid rent which had been earned at the time
                  of such termination; plus (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 Tenant proves
                  could have been reasonably avoided; plus (iii) the worth at
                  the time of award of the amount by which the unpaid rent for
                  the balance of the Lease Term after the time of award
                  exceeds the amount of such rental loss that Tenant proves
                  could have been reasonably avoided; plus (iv) any other
                  amount necessary to compensate Landlord for all the
                  detriment proximately caused by Tenant's failure to perform
                  its obligations under this Lease or which in the ordinary
                  course of things would be likely to result therefrom,
                  specifically including but not limited to, brokerage
                  commissions and advertising expenses incurred, expenses of
                  remodeling the Premises or any portion thereof for a new
                  tenant, whether for the same or a different use, and any
                  special concessions made to obtain a new tenant; and (v) at
                  Landlord's election, such other amounts in addition to or in
                  lieu of the foregoing as may be permitted from time to time
                  by applicable law. The term "rent" as used in this Article
                  20(a) shall be deemed to be an d to mean all sums of every
                  nature required to be paid by Tenant pursuant to the terms
                  of this Lease, whether to Landlord or to others. As used in
                  items (i) and (ii), above, the "worth at the time of award"
                  shall be computed by allowing interest at the rate set forth
                  in item (e), below, but in no case greater than the maximum
                  amount of such interest permitted by law. As used in item
                  (iii), above, the "worth at the time of award" shall be
                  computed by discounting such amount at the discount rate of
                  the Federal Reserve Bank of San Francisco at the time of
                  award plus one percent (1%).

         Nothing in this Article 20 shall be deemed to affect Landlord's right
                  to indemnification for liability or liabilities arising prior
                  to the termination of this Lease for personal injuries or
                  property damage under the indemnification clause or clauses
                  contained in this Lease.

         Notwithstanding anything to the contrary set forth herein, Landlord's
                  re-entry to perform acts of maintenance or preservation of or
                  in connection with efforts to relet the Premises or any
                  portion thereof, or the appointment of a receiver upon
                  Landlord's initiative to protect Landlord's interest under
                  this Lease shall not terminate Tenant's right to possession of
                  the Premises or any portion thereof and, until Landlord does
                  elect to terminate this Lease, this Lease shall continue in
                  full force and effect and Landlord may enforce all of
                  Landlord's rights and remedies hereunder including, without
                  limitation, the remedy described in California Civil Code
                  Section 1951.4 (lessor may continue lease in effect after
                  lessee's breach and abandonment and recover rent as it becomes
                  due, if Lessee has the right to sublet or assign, subject only
                  to reasonable limitations). Accordingly, if Landlord does not
                  elect to terminate this Lease on account of any default by
                  Tenant, Landlord may, from time to time, without terminating
                  this Lease, enforce all of its rights and remedies under this
                  Lease, including the right to recover all rent as it becomes
                  due.

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         All rights, powers and remedies of Landlord hereunder and under any
                  other agreement now or hereafter in force between Landlord and
                  Tenant shall be cumulative and not alternative and shall be in
                  addition to all rights, powers and remedies given to Landlord
                  by law, and the exercise of one or more rights or remedies
                  shall not impair Landlord's right to exercise any other right
                  or remedy.

         Any amount due from Tenant to Landlord hereunder which is not paid when
                  due shall bear interest at the lower of eighteen percent (18%)
                  per annum or the maximum lawful rate of interest from the due
                  date until paid, unless otherwise specifically provided
                  herein, but the payment of such interest shall not excuse or
                  cure any default by Tenant under this lease. In addition to
                  such interest: (a) if Basic Rental is not paid within ten (10)
                  days after the same is due, a late charge equal to five
                  percent (5%) of the amount overdue or $100, whichever is
                  greater, shall be assessed and shall accrue for each calendar
                  month or part thereof until such rental, including the late
                  charge, is paid in full, which late charge Tenant hereby
                  agrees is a reasonable estimate of the damages Landlord shall
                  suffer as a result of Tenant's late payment and (b) an
                  additional charge of $25 shall be assessed for any check given
                  to Landlord by or on behalf of Tenant which is not honored by
                  the drawee thereof; which damages include Landlord's
                  additional administrative and other costs associated with such
                  late payment and unsatisfied checks and the parties agree that
                  it would be impracticable or extremely difficult to fix
                  Landlord's actual damage in such event. Such charges for
                  interest and late payments and unsatisfied checks are separate
                  and cumulative and are in addition to and shall not diminish
                  or represent a substitute for any or all of Landlord's rights
                  or remedies under any other provision of this Lease.

         TRANSFER OF LANDLORD'S INTEREST

         In the event of any transfer or termination of Landlord's interest in
the Premises or the Project by sale, assignment, transfer, foreclosure,
deed-in-lieu of foreclosure or otherwise whether voluntary or involuntary,
Landlord shall be automatically relieved of any and all obligations and
liabilities on the part of Landlord from and after the date of such transfer
or termination, including furthermore without limitation, the obligation of
Landlord under Article 4 and California Civil Code 1950.7 above to return the
security deposit, provided said security deposit is transferred to said
transferee. Tenant agrees to attorn to the transferee upon any such transfer
and to recognize such transferee as the lessor under this Lease and Tenant
shall, within fifteen (15) days after request, execute such further
instruments or assurances as such transferee may reasonably deem necessary to
evidence or confirm such attornment.

         BROKER

         In connection with this Lease, Tenant warrants and represents that it
has had dealings only with firm(s) set forth in Article 1.H. of the Basic
Lease Provisions and that it knows of no other person or entity who is or
might be entitled to a commission, finder's fee or other like payment in
connection herewith and does hereby indemnify and agree to hold Landlord, its

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<PAGE>

agents, members, partners, representatives, officers, affiliates,
shareholders, employees, successors and assigns harmless from and against any
and all loss, liability and expenses that Landlord may incur should such
warranty and representation prove incorrect, inaccurate or false. Except as
provided herein, Landlord shall be solely responsible for payment of any
brokerage commissions owing to such firm(s) in connection herewith.

         PARKING

         Tenant shall be entitled to rent from Landlord up to the number of
Structure Passes and Surface Passes set forth in Section 1(I) of the Basic
Lease Provisions, which parking passes shall pertain to either the Project's
surface parking lot or the Project parking structure (as designated in Section
1(I)). Tenant's right to use the Surface Passes shall commence as of July 1,
1997 and Tenant's right to use the Structure Passes shall commence as of the
Lease Commencement Date. Until the end of the third (3rd) Lease Year, Tenant
shall pay to Landlord fifty-five Dollars ($55.00) per pass per month for each
Surface Pass and seventy-five Dollars ($75.00) per pass per month for each
Structure Pass. Thereafter, Tenant shall pay to Landlord for automobile
parking passes the prevailing rate charged from time to time at the location
of such parking passes. In addition, Tenant shall be responsible for the full
amount of any taxes imposed by any governmental authority in connection with
the renting of such parking passes by Tenant or the use of the parking
facility by Tenant. Tenant shall have the right to vary the number of Surface
Passes utilized by Tenant from time to time throughout the Lease Term upon at
least thirty (30) days' prior written notice to Landlord. However, if Tenant
notifies Landlord that Tenant elects not to utilize all of the Structure
Passes to which Tenant is entitled under Section 1(I) of the Basic Lease
Provisions at any time during the Lease Term, then any such Structure Passes
that Tenant elects not to so utilize shall no longer be available to Tenant
during the remainder of the Lease Term. Tenant's continued right to use the
parking passes is conditioned upon Tenant abiding by all rules and regulations
which are prescribed from time to time for the orderly operation and use of
the parking facility where the parking passes are located, including any
sticker or other identification system established by Landlord, Tenant's
cooperation in seeing that Tenant's employees and visitors also comply with
such rules and regulations, and Tenant not being in default under this Lease.
Landlord specifically reserves the right to change the size, configuration,
design, layout and all other aspects of the Project parking facility at any
time and Tenant acknowledges and agrees that Landlord may, without incurring
any liability to Tenant and without any abatement of rent under this Lease,
from time to time, close-off or restrict access to the Project parking
facility for purposes of permitting or facilitating any such construction,
alteration or improvements. Landlord may delegate its responsibilities
hereunder to a parking operator or a lessee of the parking facility in which
case such parking operator or lessee shall have all the rights of control
attributed hereby to the Landlord. The parking passes rented by Tenant
pursuant to this Article 23 are provided to Tenant solely for use by Tenant's
own personnel and such passes may not be transferred, assigned, subleased or
otherwise alienated by Tenant without Landlord's prior approval. Tenant may
validate visitor parking by such method or methods as the Landlord may
establish, at the validation rate from time to time generally applicable to
visitor parking.

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         WAIVER

         No waiver by Landlord of any provision of this Lease shall be deemed
to be a waiver of any other provision hereof or of any subsequent breach by
Tenant of the same or any other provision. No provision of this Lease may be
waived by Landlord, except by an instrument in writing executed by Landlord.
Landlord's consent to or approval of any act by Tenant requiring Landlord's
consent or approval shall not be deemed to render unnecessary the obtaining of
Landlord's consent to or approval of any subsequent act of Tenant, whether or
not similar to the act so consented to or approved. No act or thing done by
Landlord or Landlord's agents under the Term of this Lease shall be deemed an
acceptance of a surrender of the Premises, and no agreement to accept such
surrender shall be valid unless in writing and signed by Landlord. Any payment
by Tenant or receipt by Landlord of an amount less than the total amount then
due hereunder shall be deemed to be in partial payment only thereof and not a
waiver of the balance due or an accord and satisfaction, notwithstanding any
statement or endorsement to the contrary on any check or any other instrument
delivered concurrently therewith or in reference thereto. Accordingly,
Landlord may accept any such amount and negotiate any such check without
prejudice to Landlord's right to recover all balances due and owing and to
pursue its other rights against Tenant under this Lease, regardless of whether
Landlord makes any notation on such instrument of payment or otherwise
notifies Tenant that such acceptance or negotiation is without prejudice to
Landlord's rights.

         ESTOPPEL CERTIFICATE

         Tenant shall, at any time and from time to time, upon not less than
fifteen (15) days' prior written notice from Landlord, execute, acknowledge
and deliver to Landlord a statement in writing certifying the following
information, (but not limited to the following information in the event
further information is requested by Landlord): (i) that this Lease is
unmodified and in full force and effect (or, if modified, stating the nature
of such modification and certifying that this Lease, as modified, is in full
force and effect); (ii) the dates to which the rental and other charges are
paid in advance, if any; (iii) the amount of Tenant's security deposit, if
any; and (iv) acknowledging that there are not, to Tenant's knowledge, any
uncured defaults on the part of Landlord hereunder, and no events or
conditions then in existence which, with the passage of time or notice or
both, would constitute a default on the part of Landlord hereunder, or
specifying such defaults, events or conditions, if any are claimed. It is
expressly understood and agreed that any such statement may be relied upon by
any prospective purchaser or encumbrancer of all or any portion of the Real
Property. Tenant's failure to deliver such statement within such time shall
constitute a default under this Lease. Tenant agrees to execute all documents
required in accordance with this Article 25 within fifteen (15) days after
delivery of said documents.

         LIABILITY OF LANDLORD

         Notwithstanding anything in this Lease to the contrary, any remedy of
Tenant for the collection of a judgment (or other judicial process) requiring
the payment of money by Landlord

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<PAGE>

in the event of any default by Landlord hereunder or any claim, cause of
action or obligation, contractual, statutory or otherwise by Tenant against
Landlord concerning, arising out of or relating to any matter relating to this
Lease and all of the covenants and conditions or any obligations, contractual,
statutory, or otherwise set forth herein, shall be limited solely and
exclusively to an amount which is equal to the lesser of (i) the interest of
Landlord in and to the Project, and (ii) the interest Landlord would have in
the Project if the Project were encumbered by third party debt in an amount
equal to ninety percent (90%) of the then current value of the Project (as
such value is reasonably determined by Landlord). No other property or assets
of Landlord, or any member, officer, director shareholder, partners, trustee,
agent, servant or employee of Landlord (the "Representative") shall be subject
to levy, execution or other enforcement procedure for the satisfaction of
Tenant's remedies under or with respect to this Lease, Landlord's obligations
to Tenant, whether contractual, statutory or otherwise, the relationship of
Landlord and Tenant hereunder, or Tenant's use or occupancy of the Premises.
Tenant further understands that any liability, duty or obligation of Landlord
to Tenant that arises after the date that Landlord or any of Landlord's
Representatives no longer have any right, title or interest in or to the
Project, shall automatically cease and terminate as of the date that Landlord
or any of the Landlord's Representatives no longer have any right, title or
interest in or to the Project, provided that any transferee of Landlord's
right, title and interest in or to the Project assumes Landlord's obligations
hereunder, by operation of law or otherwise, after the date of such transfer.

         INABILITY TO PERFORM

         This Lease and the obligations of Tenant hereunder shall not be
affected or impaired because Landlord is unable to fulfill any of its
obligations hereunder or is delayed in doing so, if such inability or delay is
caused by reason of any prevention, delay, stoppage due to strikes, lockouts,
acts of God, or any other cause previously, or at such time, beyond the
reasonable control or anticipation of Landlord (collectively, a "Force
Majeure") and Landlord's obligations under this Lease shall be forgiven and
suspended by any such Force Majeure.

         HAZARDOUS WASTE

         Tenant shall not cause or permit any Hazardous Material (as defined in
                  Article 28(d) below) to be brought, kept or used in or about
                  the Project by Tenant, its agents, employees, contractors, or
                  invitees, except for general office supplies typically used in
                  the ordinary course of business (e.g., copier toner, liquid
                  paper, glue, ink, and cleaning solvents) in commercially
                  reasonable amounts used in compliance with all applicable
                  Laws. Without limiting the foregoing, if the presence of any
                  Hazardous Material on the Project caused or permitted by
                  Tenant results in any contamination of the Project and subject
                  to the provisions of Articles 9, 10, and 11, hereof, Tenant
                  shall promptly take all actions at its sole expense as are
                  necessary to return the Project to the condition existing
                  prior to the introduction of any such Hazardous Material and
                  the contractors to be used by Tenant for such work must be
                  approved by Landlord, which approval shall not be unreasonably

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<PAGE>

                  withheld so long as such actions would not potentially have
                  any material adverse long-term or short-term effect on the
                  Project and so long as such actions do not materially
                  interfere with the use and enjoyment of the Project by the
                  other tenants thereof.

         It shall not be unreasonable for Landlord to withhold its consent to
                  any proposed Transfer if (i) the proposed transferee's
                  anticipated use of the Premises involves the generation,
                  storage, use, treatment, or disposal of Hazardous Material;
                  (ii) the proposed Transferee has been required by any prior
                  landlord, lender, or governmental authority to take remedial
                  action in connection with Hazardous Material contaminating a
                  property if the contamination resulted from such Transferee's
                  actions or use of the property in question; or (iii) the
                  proposed Transferee is subject to an enforcement order issued
                  by any governmental authority in connection with the use,
                  disposal, or storage of a Hazardous Material.

         As used herein, the term "Hazardous Material" means any hazardous or
                  toxic substance, material, or waste which is or becomes
                  regulated by any local governmental authority, the State of
                  California or the United States Government. The term
                  "Hazardous Material" includes, without limitation, any
                  material or substance which is (i) defined as "Hazardous
                  Waste," "Extremely Hazardous Waste," or "Restricted Hazardous
                  Waste" under Sections 25115, 25117 or 25122.7, or listed
                  pursuant to Section 25140, of the California Health and Safety
                  Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law),
                  (ii) defined as "Hazardous Substance" under Section 25316 of
                  the California Health and Safety Code, Division 20, Chapter
                  6.8 (Carpenter-Presley-Tanner Hazardous Substance Account
                  Act), (iii) defined as a "Hazardous Material," "Hazardous
                  Substance," or "Hazardous Waste" under Section 25501 of the
                  California Health and Safety Code, Division 20, Chapter 6.95
                  (Hazardous Materials Release Response Plans and Inventory),
                  (iv) defined as "Hazardous Substance" under Section 25281 of
                  the California Health and Safety Code, Division 20, Chapter
                  6.7 (Underground Storage of Hazardous Substance), (v)
                  petroleum, (vi) asbestos, (vii) listed under Article 9 or
                  defined as Hazardous or extremely hazardous pursuant to
                  Article 11 of Title 22 of the California Administrative Code,
                  Division 4, Chapter 20, (viii) designated as a "Hazardous
                  Substance" pursuant to Section 311 of the Federal Water
                  Pollution Control Act (33 USC Section 1317), (ix) defined as a
                  "Hazardous Waste" pursuant to Section 1004 of the Federal
                  Resource Conservation and Recovery Act, 24 USA Section 6901 et
                  seq. (42 USC Section 6903), or (x) defined as a "Hazardous
                  Substance" pursuant to Section 101 of the Comprehensive
                  Environmental Response, Compensation and Liability Act, 42 USA
                  Section 9601 et seq. 942 USA Section 9601).

         As used herein, the term "Laws" mean any applicable federal, state or
                  local laws, ordinances, or regulations relating to any
                  Hazardous Material affecting the Project, including, without
                  limitation, the laws, ordinances, and regulations referred to
                  in Article 28(c) above.

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         Landlord represents to Tenant that to the actual knowledge of
                  Landlord's Director of Leasing as of the date of this Lease,
                  there are no Hazardous Materials located on the Project in
                  violation of any Laws in effect as of the date of this Lease.

         SURRENDER OF PREMISES; REMOVAL OF PROPERTY

         The voluntary or other surrender of this Lease by Tenant to Landlord,
                  or a mutual termination hereof, shall not work a merger, and
                  shall at the option of Landlord, operate as an assignment to
                  it of any or all subleases or subtenancies affecting the
                  Premises.

         Upon the expiration of the Term of this Lease, or upon any earlier
                  termination of this Lease, Tenant shall quit and surrender
                  possession of the Premises to Landlord in as good order and
                  condition as the same are now and hereafter may be improved by
                  Landlord or Tenant, reasonable wear and tear, obsolescence,
                  damage from the elements, fire and other casualty and repairs
                  which are Landlord's obligation excepted, and shall, without
                  expense to Landlord, remove or cause to be removed from the
                  Premises all debris and rubbish, all furniture, equipment,
                  business and trade fixtures, free-standing cabinet work,
                  moveable partitioning and other articles of personal property
                  owned by Tenant or installed or placed by Tenant at its own
                  expense in the Premises, and all similar articles of any other
                  persons claiming under Tenant unless Landlord exercises its
                  option to have any subleases or subtenancies assigned to it,
                  and Tenant shall repair all damage to the Premises resulting
                  from the installation and removal of such items to be removed.

         Whenever Landlord shall reenter the Premises as provided in Article 12
                  hereof, or as otherwise provided in this Lease, any property
                  of Tenant not removed by Tenant upon the expiration of the
                  Term of this Lease, unless Tenant is holding over pursuant to
                  Article 5 of this Lease (or within forty-eight (48) hours
                  after a termination by reasons of Tenant's default), as
                  provided in this Lease, shall be considered abandoned and
                  Landlord may remove any or all of such items and dispose of
                  the same in any manner or store the same in a public warehouse
                  or elsewhere for the account and at the expense and risk of
                  Tenant, and if Tenant shall fail to pay the cost of storing
                  any such property after it has been stored for a period of
                  ninety (90) days or more, Landlord may sell any or all of such
                  property at public or private sale, in such manner and at such
                  times and places as Landlord, in its sole discretion, may deem
                  proper, without notice or to demand upon Tenant, for the
                  payment of all or any part of such charges or the removal of
                  any such property, and shall apply the proceeds of such sale:
                  first, to the cost and expense of such sale, including
                  reasonable attorneys' fees for services rendered; second, to
                  the payment of the cost of or charges for storing any such
                  property; third, to the payment of any other sums of money
                  which may then or thereafter be due to Landlord from Tenant
                  under any of the terms hereof; and fourth, the balance, if
                  any, to Tenant.

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         All fixtures, equipment, alterations, additions, improvements and/or
                  appurtenances attached to or built into the Premises prior to
                  or during the Term, whether by Landlord or Tenant and whether
                  at the expense of Landlord or Tenant, or of both, shall be and
                  remain part of the Premises and shall not be removed by Tenant
                  at the end of the Term unless otherwise expressly provided for
                  in this Lease or unless such removal is required by Landlord
                  pursuant to the provisions of Article 9, above. Such fixtures,
                  equipment, alterations, additions, improvements and/or
                  appurtenances shall include but not be limited to: all floor
                  coverings, drapes, paneling, built-in cabinetry, molding,
                  doors, vaults (including vault doors), plumbing systems,
                  electrical systems, lighting systems, silencing equipment,
                  communication systems, all fixtures and outlets for the
                  systems mentioned above and for all telephone, radio,
                  telegraph and television purposes, and any special flooring or
                  ceiling installations. Notwithstanding anything to the
                  contrary contained herein, Tenant may, at the end of the Term
                  of this Lease, remove communication systems and audio-visual
                  systems purchased and paid for by Tenant with funds that were
                  not a part of the Tenant Improvement Allowance, provided that
                  such systems are not permanently affixed to the Premises and
                  further provided that Tenant shall, at Tenant's sole cost and
                  expense, repair any and all damage resulting from Tenant's
                  removal of such items.

         MISCELLANEOUS

         SEVERABILITY; ENTIRE AGREEMENT. Any provision of this Lease which shall
                  prove to be invalid, void or illegal shall in no way affect,
                  impair or invalidate any other provision hereof and such other
                  provisions shall remain in full force and effect. This Lease
                  and the Exhibits and any Addendum attached hereto constitute
                  the entire agreement between the parties hereto with respect
                  to the subject matter hereof, and no prior agreement or
                  understanding pertaining to any such matter shall be effective
                  for any purpose. No provision of this Lease may be amended or
                  supplemented except by an agreement in writing signed by the
                  parties hereto or their successor in interest. This Lease
                  shall be governed by and construed in accordance with the laws
                  of the State of California.

         ATTORNEYS' FEES; WAIVER OF JURY TRIAL.

                  In any action to enforce the terms of this Lease, including
                           any suit by Landlord for the recovery of rent or
                           possession of the Premises, the losing party shall
                           pay the successful party a reasonable sum for
                           attorneys' fees in such suit and such attorneys' fees
                           shall be deemed to have accrued prior to the
                           commencement of such action and shall be paid whether
                           or not such action is prosecuted to judgment.

                  EACH PARTY HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN  ANY
                           ACTION SEEKING SPECIFIC PERFORMANCE OF ANY PROVISIONS
                           OF THIS LEASE, FOR DAMAGES FOR ANY

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                           BREACH UNDER THIS LEASE, OR OTHERWISE FOR
                           ENFORCEMENT OF ANY RIGHT OR REMEDY HEREUNDER.

         TIME OF ESSENCE.  Time is of the essence with respect to the
                  performance of every provision of this Lease.

         HEADINGS. The article headings contained in this Lease are for
                  convenience only and do not in any way limit or amplify any
                  term or provision hereof. The terms "Landlord" and "Tenant" as
                  used herein shall include the plural as well as the singular,
                  the neuter shall include the masculine and feminine genders
                  and the obligations herein imposed upon Tenant shall be joint
                  and several as to each of the persons, firms or corporations
                  of which Tenant may be composed.

         RESERVED AREA. Tenant hereby acknowledges and agrees that the exterior
                  walls of the Premises and the area between the finished
                  ceiling of the Premises and the slab of the floor of the
                  project thereabove have not been demised hereby and the use
                  thereof together with the right to install, maintain, use,
                  repair and replace pipes, ducts, conduits and wires leading
                  through, under or above the Premises in locations which will
                  not materially interfere with Tenant's use of the Premises and
                  serving other parts of the Project are hereby excepted and
                  reserved unto Landlord.

         NO OPTION. The submission of this Lease by Landlord, its agent or
                  representative for examination or execution by Tenant does not
                  constitute an option or offer to lease the Premises upon the
                  terms and conditions contained herein or a reservation of the
                  Premises in favor of Tenant, it being intended hereby that
                  this Lease shall only become effective upon the execution
                  hereof by Landlord and delivery of a fully executed Lease to
                  Tenant.

         USE OF PROJECT NAME; IMPROVEMENTS. Tenant shall not be allowed to use
                  the name, picture or representation of the Project, or words
                  to that effect, in connection with any business carried on in
                  the Premises or otherwise (except as Tenant's address) without
                  the prior written consent of Landlord. In the event that
                  Landlord undertakes any additional improvements on the Real
                  Property including but not limited to new construction or
                  renovation or additions to the existing improvements, Landlord
                  shall use commercially reasonable efforts to minimize
                  interference with Tenant's operations in the Premises, but in
                  no event shall Landlord be liable to Tenant for any noise,
                  dust, vibration or interference with access to the Premises or
                  disruption in Tenant's business caused thereby.

         RULES AND REGULATIONS. Tenant shall observe faithfully and comply
                  strictly with the Rules and Regulations attached to this Lease
                  and made a part hereof, and such other Rules and Regulations
                  as Landlord may from time to time reasonably adopted for the
                  safety, care and cleanliness of the Project, the facilities
                  thereof, or the preservation of good order therein. Landlord
                  shall not be liable to Tenant for violation of any such Rules
                  and Regulations, or for the breach of any covenant or
                  condition in any lease by any other tenant in the Project. A
                  waiver by Landlord of

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                  any Rule or Regulation for any other tenant shall not
                  constitute nor be deemed a waiver of the Rule or Regulation
                  for this Tenant.

         QUIET POSSESSION. Upon Tenant's paying the Basic Rent, Additional  Rent
                  and other sums provided hereunder and observing and performing
                  all of the covenants, conditions and provisions on Tenant's
                  part to be observed and performed hereunder, Tenant shall have
                  quiet possession of the Premises for the entire Term hereof,
                  subject to all of the provisions of this Lease.

         RENT.  All payments required to be made hereunder to Landlord shall be
                  deemed to be rent, whether or not described as such.

         SUCCESSORS AND ASSIGNS. Subject to the provisions of Article 15 hereof,
                  all of the covenants, conditions and provisions of this Lease
                  shall be binding upon and shall inure to the benefit of the
                  parties hereto and their respective heirs, personal
                  representatives, successors and assigns.

         NOTICES. Any notice required or permitted to be given hereunder shall
                  be in writing and may be given by recognized overnight service
                  or sent by registered or certified mail, return receipt
                  requested, addressed to Tenant at 200 Park Avenue, New York,
                  NY 10166, Attn: director of Leasing, or to Landlord at the
                  address of the place from time to time established for the
                  payment of rent and which shall be effective upon proof of
                  delivery. Either party may by notice to the other specify a
                  different address for notice purposes. A copy of all notices
                  to be given to Landlord hereunder shall be concurrently
                  transmitted by Tenant to such party hereafter designated by
                  notice from Landlord to Tenant.

         PERSISTENT DELINQUENCIES. In the event that Tenant shall be delinquent
                  by more than fifteen (15) days in the payment of rent on three
                  (3) separate occasions in any twelve (12) month period,
                  Landlord shall have the right to terminate this Lease by
                  thirty (30) days written notice given by Landlord to Tenant
                  within thirty (30) days of the last such delinquency.

         RIGHT OF LANDLORD TO PERFORM. All covenants and agreements to be
                  performed by Tenant under any of the terms of this Lease shall
                  be performed by Tenant at Tenant's sole cost and expense and
                  without any abatement of rent. If Tenant shall fail to pay any
                  sum of money, other than rent, required to be paid by it
                  hereunder or shall fail to perform any other act on its part
                  to be performed hereunder, and such failure shall continue
                  beyond any applicable cure period set forth in this Lease,
                  Landlord may, but shall not be obligated to, without waiving
                  or releasing Tenant from any obligations of Tenant, make any
                  such payment or perform any such other act on Tenant's part to
                  be made or performed as is in this Lease provided. All sums so
                  paid by Landlord and all reasonable incidental costs, together
                  with interest thereon at the rate of ten percent (10%) per
                  annum from the date of such payment by Landlord, shall be
                  payable to Landlord fifteen (15) days after written demand and
                  Tenant covenants to pay any such sums, and Landlord shall have
                  (in addition to any other right or remedy of Landlord) the
                  same rights and remedies in the

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                  event of the nonpayment thereof by Tenant as in the case of
                  default by Tenant in the payment of the rent.

         ACCESS, CHANGES IN PROJECT, FACILITIES, NAME.

                  Every part of the Project except the inside surfaces of all
                           walls, windows and doors bounding the Premises
                           (including exterior building walls, core corridors
                           walls and doors and any core corridor entrance), and
                           any space in or adjacent to the premises used for
                           shafts, stacks, pies, conduits, fan rooms, ducts,
                           electric or other utilities, sinks or other building
                           facilities, and the use thereof, as well as access
                           thereto through the Premises for the purposes of
                           operation, maintenance, decoration and repair, are
                           reserved to Landlord.

                  Tenant shall permit Landlord to install, use and maintain
                           pipes, ducts and conduits within the walls, columns
                           and ceilings of the Premises. In exercising its
                           rights under this Section (o)(ii), Landlord shall use
                           commercially reasonable efforts to minimize
                           interference with Tenant's operations in the
                           Premises.

                  Landlord reserves the right, without incurring any liability
                           to Tenant therefor, to make such changes in or to the
                           Project and the fixtures and equipment thereof, as
                           well as in or to the street entrances, halls,
                           passages, elevators, stairways and other improvements
                           thereof, as it may deem necessary or desirable. In
                           exercising its rights under this Section (o)(iii),
                           Landlord shall use commercially reasonable efforts to
                           minimize interference with Tenant's operations in the
                           Premises.

                  Landlord may adopt any name for the Project and Landlord
                           reserves the right to change the name or address of
                           the Project at any time.

         CORPORATE AUTHORITY. If Tenant is a corporation, each individual
                  executing this Lease on behalf of said corporation represents
                  and warrants that he or she is duly authorized to execute and
                  deliver this Lease on behalf of said corporation in accordance
                  with a duly adopted resolution of the Board of Directors of
                  said corporation or in accordance with the Bylaws of said
                  corporations, and that this Lease is binding upon said
                  corporation in accordance with its terms. If Tenant is a
                  corporation, said corporation and each individual executing
                  this Lease on behalf of said corporation covenants that Tenant
                  shall provide to Landlord a copy of such resolution of the
                  Board of directors authorizing the execution of this lease on
                  behalf of such corporation.

         IDENTIFICATION OF TENANT.

                  If Tenant constitutes more than one person or entity, (A) each
                           of them shall be jointly and severally liable for the
                           keeping, observing and performing of all of the
                           terms, covenants, conditions and provisions of this
                           Lease to be

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                          kept, observed and performed by Tenant, (B) the
                          term "Tenant" as used in this Lease shall mean and
                          include each of them jointly and severally, and (C)
                          the act of or notice from, or notice or refund to,
                          or the signature of, any one or more of them, with
                          respect to the tenancy of this Lease, including,
                          but not limited to, any renewal, extension,
                          expiration, termination or modification of this
                          Lease, shall be binding upon each and all of the
                          persons or entities executing this Lease as Tenant
                          with the same force and effect as if each and all
                          of them had so acted or so given or received such
                          notice or refund or so signed.

                  If Tenant is a partnership (or is comprised of two or more
                           persons, individually and as copartners of a
                           partnership) or if Tenant's interest in this Lease
                           shall be assigned to a partnership (or to two or more
                           persons, individually and as copartners of a
                           partnership) pursuant to Article 15 hereof (any such
                           partnership and such persons hereinafter referred to
                           in this Article 30(q)(ii) as "Partnership Tenant"),
                           the following provisions of this Lease shall apply to
                           such Partnership Tenant:

                           The liability of each of the parties comprising
                                    Partnership Tenant shall be joint and
                                    several.

                           Each of the parties comprising Partnership Tenant
                                    hereby consents in advance to, and agrees to
                                    be bound by, any written instrument which
                                    may hereafter be executed, changing,
                                    modifying or discharging this Lease, in
                                    whole or in part, or surrendering all or any
                                    part of the Premises to the Landlord, and by
                                    notices, demands, requests or other
                                    communication which may hereafter be given,
                                    by Partnership Tenant or any of the parties
                                    comprising Partnership Tenant.

                           Any bills, statements, notices, demands, requests or
                                    other communications given or rendered to
                                    Partnership Tenant or to any of the parties
                                    comprising Partnership Tenant shall be
                                    deemed given or rendered to Partnership
                                    Tenant and to all such parties and shall be
                                    binding upon Partnership Tenant and all such
                                    parties.

                           If Partnership Tenant admits new partners, all of
                                    such new partners shall, by their admission
                                    to Partnership Tenant, be deemed to have
                                    assumed performance of all of the terms,
                                    covenants and conditions of this Lease on
                                    Tenant's part to be observed and performed.

                           Partnership Tenant shall given prompt notice to
                                    Landlord of the admission of any such new
                                    partners, and, upon demand of Landlord,
                                    shall cause each such new partner to execute
                                    and deliver to Landlord an agreement in form
                                    satisfactory to Landlord, wherein each such
                                    new partner shall assume performance of all
                                    of the terms, covenants and conditions of
                                    this Lease on Partnership Tenant's part to
                                    be

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<PAGE>

                                    observed and performed (but neither
                                    Landlord's failure to request any such
                                    agreement nor the failure of any such new
                                    partner to execute or deliver any such
                                    agreement to Landlord shall terminate the
                                    provisions of clause (D) of this Article
                                    30(q)(ii) or relieve any such new partner of
                                    its obligations thereunder).

         SUBSTITUTE PREMISES. Landlord shall have the right at any time during
                  the Term hereof, upon giving Tenant not less than sixty (60)
                  days prior notice, to provide and furnish Tenant with space
                  elsewhere in the Project of approximately the same size as the
                  Premises and remove and place Tenant in such space. However,
                  such right of Landlord shall only apply to portions of the
                  Premises that contain less than five thousand (5,000) rentable
                  square feet on any multi-tenant floor and such relocation
                  shall be to space located on the third (3rd) floor of the
                  Project or higher. Landlord shall pay all verified and
                  previously approved costs and expenses incurred as a result of
                  such movement to such new space. If Landlord moves Tenant to
                  such new space, this Lease and each and all of its terms,
                  covenants and conditions shall remain full force and effect
                  and shall be deemed applicable to such new space and such new
                  space shall thereafter be deemed to be the "Premises" as
                  though Landlord and Tenant had entered into an express written
                  amendment of this Lease with respect thereto.

         EXHIBITS AND ADDENDUM. The Exhibits and Addendum, if applicable,
                  attached hereto are incorporated herein by this reference as
                  if fully set forth herein.

         OPTION TO EXTEND

         OPTION RIGHT. Landlord hereby grants the Tenant named in this Lease
                  (the "Original Tenant") one (1) option ("Option") to extend
                  the Lease Term for the entire Premises for a period of five
                  (5) years (an "Option Term"), which Option shall be
                  exercisable only by written notice delivered by Tenant to
                  Landlord set forth below. The rights contained in this Article
                  31 shall be personal to the Original Tenant and may only be
                  exercised by the Original Tenant (and not any assignee,
                  sublessee or other transferee of the Original Tenant's
                  interest in this Lease) if the Original Tenant occupies the
                  entire Premises as of the date of Tenant's Acceptance (as
                  defined in Section 31(c) below).

         OPTION RENT. The rent payable by Tenant during the Option Term
                  ("Option Rent") shall be equal to ninety-five percent (95%) of
                  the "Market Rent" (defined below). "Market Rent" shall mean
                  the applicable Monthly Basic Rental, including all
                  escalations, Direct Costs, additional rent and other charges
                  at which tenants, as of the commencement of the Option Term,
                  are leasing non-sublease, non-encumbered, non-equity, space
                  comparable in size, location and quality to the Premises in
                  renewal transactions for a term comparable to the Option Term
                  which comparable space is located in office buildings
                  comparable to the Project in the El Segundo/Los Angeles
                  Airport area of California.

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         EXERCISE OF OPTIONS. The Option shall be exercised by Tenant only in
                  the following manner: (i) Tenant shall not be in default, and
                  shall not have been in default, and shall not have been in
                  default under this Lease more than once, on the delivery date
                  of the Interest Notice and Tenant's Acceptance; (ii) Tenant
                  shall deliver written notice ("Interest Notice") to Landlord
                  not less than nine (9) months prior to the expiration of the
                  Lease Term, stating that Tenant is interested in exercising
                  the Option, (iii) within fifteen (15) business days of
                  Landlord's receipt of Tenant's written notice, Landlord shall
                  deliver notice ("Option Rent Notice") to Tenant setting forth
                  the Option Rent; and (iv) if Tenant desires to exercise such
                  Option, Tenant shall provide Landlord written notice within
                  fifteen (15) business days after receipt of the Option Rent
                  Notice ("Tenant's Acceptance") and upon, and concurrent with
                  such exercise, Tenant may, at its option, object to the Option
                  Rent contained in the Option Rent Notice, in which case the
                  parties shall follow the procedure, and the Option Rent shall
                  be determined, as set forth in Section 31(d) below. Tenant's
                  failure to deliver the Interest Notice or Tenant's Acceptance
                  on or before the dates specified above shall be deemed to
                  constitute Tenant's election not to exercise the Option.

         DETERMINATION OF MARKET RENT. If Tenant timely and appropriately
                  objects to the Market Rent in Tenant's Acceptance, Landlord
                  and Tenant shall attempt to agree upon the Market Rent using
                  their best good-faith efforts. If Landlord and Tenant fail to
                  reach agreement within twenty-one (21) days following Tenant's
                  Acceptance ("Outside Agreement Date"), then each party shall
                  make a separate determination of the Market Rent which shall
                  be submitted to each other and to arbitration in accordance
                  with the following items (i) through (vii):

                  Landlord and Tenant shall each appoint, within ten (10) days
                           of the Outside Agreement Date, one arbitrator who
                           shall by profession be a current real estate broker
                           or appraiser of commercial high-rise properties in
                           the immediate vicinity of the Project, and who has
                           been active in such field over the last five (5)
                           years. The determination of the arbitrators shall be
                           limited solely to the issue of whether Landlord's or
                           Tenant's submitted Market Rent is the closest to the
                           actual Market Rent as determined by the arbitrators,
                           taking into account the requirements of item (b),
                           above.

                  The two arbitrators so appointed shall within five (5)
                           business days of the date of the appointment of the
                           last appointed arbitrator agree upon and appoint a
                           third arbitrator who shall be qualified under the
                           same criteria set forth hereinabove for qualification
                           of the initial two arbitrators.

                  The three arbitrators shall within fifteen (15) days of the
                           appointment of the third arbitrator reach a decision
                           as to whether the parties shall use Landlord's or
                           Tenant's submitted Market Rent, and shall notify
                           Landlord and Tenant thereof.

                  The decision of the majority of the three arbitrators shall be
                           binding upon Landlord and Tenant.

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                  If either Landlord or Tenant fails to appoint an arbitrator
                           within ten (10) days after the applicable Outside
                           Agreement Date, the arbitrator appointed by one of
                           them shall reach a decision, notify Landlord and
                           Tenant thereof, and such arbitrator's decision shall
                           be binding upon Landlord and Tenant.

                  If the two arbitrators fail to agree upon and appoint a third
                           arbitrator, or both parties fail to appoint an
                           arbitrator, then the appointment of the third
                           arbitrator or any arbitrator shall be dismissed and
                           the matter to be decided shall be forthwith submitted
                           to arbitration under the provisions of the American
                           Arbitration Association, but subject to the
                           instruction set forth in this item (d).

                  The cost of arbitration shall be paid by Landlord and Tenant
                           equally.

         RIGHT OF FIRST OFFER

         Landlord hereby grants to Tenant a right of first offer with respect to
any space on the sixth (6th) floor of the Project ("First Offer Space").
Notwithstanding the foregoing (i) such first offer right of Tenant shall
commence only following the expiration or earlier termination of any existing
lease pertaining to the First Offer Space, and, as to any First Offer Space
which is vacant as of the date of this Lease, the first lease pertaining to any
portion of such First Offer Space entered into by Landlord after the date of
this Lease (collectively, the "Superior Leases"), including any renewal or
extension of such existing or future lease, whether or not such renewal or
extension is pursuant to an express written provision in such lease, and
regardless of whether any such renewal or extension is consummated pursuant to a
lease amendment or a new lease, and (ii) such first offer right shall be
subordinate and secondary to all rights of expansion, first refusal, first offer
or similar rights granted to the tenants of the Superior Leases (the rights
described in items (i) and (ii), above to be known collectively as "Superior
Rights"). Tenant's right of first offer shall be on the terms and conditions set
forth in this Section 32.

         PROCEDURE FOR OFFER. Landlord shall notify Tenant (the "First Offer
                  Notice") from time to time when Landlord determines that
                  Landlord shall commence the marketing of any First Offer Space
                  because such space shall become available for lease to third
                  parties, where no holder of a Superior Right desires to lease
                  such space. the First Offer Notice shall describe the space
                  so offered to Tenant and shall set forth Landlord's proposed
                  economic terms and conditions applicable to Tenant's lease of
                  such space (collectively, the "Economic Terms").
                  Notwithstanding the foregoing, Landlord's obligation to
                  deliver the First Offer Notice shall not apply during the last
                  nine (9) months of the initial Lease Term unless Tenant has
                  delivered an Interest Notice to Landlord pursuant to Section
                  31(c) above nor shall Landlord be obligated to deliver the
                  First Offer Notice during the last eight (8) months of the
                  initial Lease Term unless Tenant has delivered Tenant's
                  Acceptance to Landlord pursuant to Section 31(c) above.

         PROCEDURE FOR ACCEPTANCE. If Tenant wishes to exercise Tenant's right
                  of first offer with respect to the space described in the
                  First Offer Notice, then within fifteen (15)

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                                                                 Initials: ____
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<PAGE>

                  business days after delivery of the First Offer Notice to
                  Tenant, Tenant shall deliver notice to Landlord of Tenant's
                  intention to exercise its right of first offer with respect
                  to the entire space described in the First Offer Notice. If
                  concurrently with Tenant's exercise of the first offer
                  right, Tenant notifies Landlord that it does not accept the
                  Economic Terms set forth in the First Offer Notice,
                  Landlord and Tenant shall, for a period of fifteen (15)
                  business days after Tenant's exercise, negotiate in good
                  faith to reach agreement as to such Economic Terms. If
                  Tenant does not so notify Landlord that it does not accept
                  the Economic Terms set forth in the First Offer Notice
                  concurrently with Tenant's exercise of the first offer
                  right, the Economic Terms shall be as set forth in the
                  First Offer Notice. In addition, if Tenant does not
                  exercise its right of first offer within the fifteen (15)
                  business day period, or, if Tenant exercises its first
                  offer right but timely objects to Landlord's determination
                  of the Economic Terms within said fifteen (15) business day
                  period, then Landlord shall be free to lease the space
                  described in the First Offer Notice to anyone to whom
                  Landlord desires on any terms Landlord desires and Tenant's
                  right of first offer shall terminate as to the First Offer
                  Space described in the First Office Notice. Notwithstanding
                  anything to the contrary contained herein, Tenant must
                  elect to exercise its right of first offer, if at all, with
                  respect to all of the space offered by Landlord to Tenant
                  at any particular time, and Tenant may not elect to lease
                  only a portion thereof.

         CONSTRUCTION OF FIRST OFFER SPACE. Tenant shall take the First Offer
                  Space in its "as-is" condition, and Tenant shall be entitled
                  to construct improvements in the First Offer Space in
                  accordance with the provisions of Article 9 of this Lease.

         LEASE OF FIRST OFFER SPACE. If Tenant timely exercises Tenant's right
                  to lease the First Offer Space as set forth herein, Landlord
                  and Tenant shall execute an amendment adding such First Offer
                  Space to this Lease upon the same non-economic terms and
                  conditions as applicable to the initial Premises, and the
                  economic terms and conditions as provided in this Section 32.
                  Tenant shall commence payment of rent for the First Offer
                  Space and the Lease Term of the First Offer space shall
                  commence upon the date of delivery of such space to Tenant.
                  The Lease Term for the First Offer Space shall expire
                  co-terminously with Tenant's lease of the initial Premises.

         NO DEFAULTS. The rights contained in this Section 32(b) shall be
                  personal to the Original Tenant, and may only be exercised by
                  the Original Tenant (and not any assignee, sublessee or other
                  transferee of the Original Tenant's interest in this Lease) if
                  Tenant occupies the entire Premises as of the date of the
                  First Offer Notice. Tenant shall not have the right to lease
                  First Office Space as provided in this Section 32(b) if, as of
                  the date of the First Offer Notice, or, at Landlord's option,
                  as of the scheduled date of delivery of such First Offer Space
                  to Tenant, Tenant is in default under this Lease or Tenant has
                  previously been in default under this Lease more than once.

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<PAGE>

         DIRECTORY

         Provided Tenant is not in default hereunder, Tenant, at Tenant's sole
cost and expense, shall have the right to one (1) line in the lobby directory
during the Lease Term.

         TERMINATION OPTION

         Provided Tenant fully and completely satisfies each of the conditions
set forth in this Article 34, Tenant shall have the option ("Termination
Option") to terminate this Lease effective at the end of the sixtieth (60th)
month of the initial Term only (the "Termination Date"). In order to exercise
the Termination Option, Tenant must fully and completely satisfy each and every
one of the following conditions: (a) Tenant must give Landlord written notice
("Termination Notice") of its intention to terminate this Lease, which
Termination Notice must be delivered to Landlord at least six (6) months prior
to the Termination Date, (b) at the time of the Termination Notice, Tenant shall
not be in default under this Lease after expiration of applicable cure periods,
and (c) within fourteen (14) days of Tenant's delivery of the Termination Notice
to Landlord, Tenant shall pay to Landlord a termination fee ("Termination Fee")
equal to the unamortized principal balance, as of the Termination Date, of the
(i) Tenant Improvement Allowance (and Additional Allowance, if any) actually
utilized by Tenant, and (ii) the brokerage commissions paid by Landlord in
connection with this Lease. Amortization pursuant to this Article 34 shall be
calculated on a ten (10) year amortization schedule commencing as of the
Commencement Date based upon equal monthly payments of principal and interest,
with interest imputed on the outstanding principal balance at the rate of ten
percent (10%) per annum. However, if Tenant exercises its right of first offer
pursuant to Article 32, above, the Termination Fee shall be increased by the
unamortized principal balance of any out-of-pocket sums expended by Landlord in
connection with any such expansion (including, without limitation, any sums
expended by Landlord to improve the First Offer space and any brokerage
commissions incurred by Landlord in connection with such expansion) with such
amortization to be calculated over any amortization period from the date upon
which Tenant's lease of the First Offer Space commences until the date of
expiration of the initial Term, based upon equal monthly payments of principal
and interest throughout such amortization period, with interest imputed on the
outstanding principal balance at the rate of ten percent (10%) per annum.

         IN WITNESS WHEREOF, the parties have executed this Lease, consisting of
the foregoing provisions and Articles, including all exhibits and other
attachments referenced therein, as of the date first above written.

         "LANDLORD"                         ARDEN REALTY LIMITED PARTNERSHIP, a
                                            Maryland limited partnership

                                            By:  ARDEN REALTY, INC., a Maryland
                                                 corporation, Its sole general
                                                 partner

                                      43
                                                                 Initials: ____
                                                                           ____
<PAGE>

                                                 By:    /s/ Victor J. Coleman
                                                    ----------------------------
                                                        Victor J. Coleman
                                                        Its:  President and CEO

                                                 By:
                                                    ----------------------------
                                                       Its:
                                                           ---------------------

         "TENANT"                           METROPOLITAN LIFE INSURANCE
                                            COMPANY, a New York corporation

                                            By:      /s/ Avi Grossman
                                               --------------------------------
                                            Print Name: Avi Grossman
                                            Its: Vice President

                                            By:
                                               --------------------------------
                                            Print Name:
                                                       ------------------------

                                            Its:
                                                 ------------------------------

                                      44
                                                                 Initials: ____
                                                                           ____
<PAGE>

                                   EXHIBIT "A"

                                    PREMISES

                                                                 Initials: ____
                                                                           ____

<PAGE>

                                   EXHIBIT "B'

                              RULES AND REGULATIONS

              1. No sign, advertisement or notice shall be displayed, printed or
     affixed on or to the Premises or to the outside or inside of the Project or
     so as to be visible from outside the Premises or Project without Landlord's
     prior written consent. Landlord shall have the right to remove any
     non-approved sign, advertisement or notice, without notice to and at the
     expense of Tenant, and Landlord shall not be liable in damages for such
     removal. All approved signs or lettering on doors and walls shall be
     printed, painted, affixed or inscribed at the expense of Tenant by Landlord
     or by a person selected by Landlord and in a manner and style acceptable to
     Landlord.

              2. Tenant shall no obtain for use on the Premises ice, drinking
     water, waxing, cleaning, interior glass polishing, rubbish removal, towel
     or other similar services, or accept barbering or bootblackening, or coffee
     cart services, milk, soft drinks or other like services on the Premises,
     except from person authorized by Landlord and at the hours and under
     regulations fixed by Landlord. No vending machines or machines of any
     description shall be installed, maintained or operated upon the Premises
     without Landlord's prior written consent.

              3. The sidewalks, halls, passages, exits, entrances, elevators and
     stairways shall not be obstructed by Tenant or used for any purpose other
     than for ingress and egress from Tenant's Premises.

              4. Toilet rooms, toilets, urinals, wash bowls and other apparatus
     shall not be used for any purpose other than for which they were
     constructed and no foreign substance of any kind whatsoever shall be thrown
     therein.

              5. Tenant shall no overload the floor of the Premises or mark,
     drive nails, screw or drill into the partitions ceilings or floor or in any
     way deface the Premises.

              6. In no event shall Tenant place a load upon any floor of the
     Premises or portion of any such flooring exceeding the floor load per
     square foot of area for which such floor is designed to carry and which is
     allowed by law, or any machinery or equipment which shall cause excessive
     vibration to the Premises or noticeable vibration to any other part of the
     Project. Prior to bringing any heavy safes, vaults, large computers or
     similarly heavy equipment into the Project, Tenant shall inform Landlord in
     writing of the dimensions and weights thereof and shall obtain Landlord's
     consent thereto. Such consent shall not constitute a representation or
     warranty by Landlord that the safe, vault or other equipment complies, with
     regard to distribution of weight and/or vibration, with the provisions of
     this Rule 6 nor relieve Tenant from responsibility for the consequences of
     such noncompliance, and any such safe, vault or other equipment which
     Landlord determines to constitute a danger of damage to the Project or a
     nuisance to other tenants, either alone or in combination with

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                                                                           ____

<PAGE>

     other heavy and/or vibrating objects and equipment, shall be promptly
     removed by Tenant upon Landlord's written notice of such determination
     and demand for removal thereof.

              7. Tenant shall not use or keep in the Premises or Project any
     kerosene, gasoline or inflammable, explosive or combustible fluid or
     material, or use any method of heating or air-conditioning other than that
     supplied by Landlord.

              8. Tenant shall not lay linoleum, tile, carpet or other similar
     floor covering so that the same shall be affixed to the floor of the
     Premises in any manner except as approved by Landlord.

              9. Tenant shall not install or use any blinds, shades, awnings or
     screens in connection with any window or door of the Premises and shall not
     use any drape or window covering facing any exterior glass surface other
     than the standard drapes, blinds or other window covering established by
     Landlord.

              10. Tenant shall cooperate with Landlord in obtaining maximum
     effectiveness of the cooling system by closing drapes when the sun's rays
     fall directly on windows of the Premises. Tenant shall no obstruct, alter,
     or in any way impair the efficient operation of Landlord's heating,
     ventilating and air-conditioning system. Tenant shall not tamper with or
     change the setting of any thermostats or control valves.

              11. The Premises shall not be used for manufacturing or for the
     storage of merchandise except as such storage may be incidental to the
     permitted use of the Premises. Tenant shall not, without Landlord's prior
     written consent, occupy or permit any portion of the Premises to be
     occupied or used for the manufacture or sale of liquor or tobacco in any
     form, or a barber or manicure shop, or as an employment bureau. The
     Premises shall not be used for lodging or sleeping or for any improper,
     objectionable or immoral purpose. No auction shall be conducted on the
     Premises.

              12. Tenant shall not make, or permit to be made, any unseemly or
     disturbing noises, or disturb or interfere with occupants of Project or
     neighboring buildings or premises or those having business with it by the
     use of any musical instrument, radio, phonographs or unusual noise, or in
     any other way.

              13. No bicycles, vehicles or animals of any kind shall be brought
     into or kept in or about the Premises, and no cooking shall be done or
     permitted by any tenant in the Premises, except that the preparation of
     coffee, tea, hot chocolate and similar items for tenants, their employees
     and visitors shall be permitted. No tenant shall cause or permit any
     unusual or objectionable odors to be produced in or permeate from or
     throughout the Premises.

              14. The sashes, sash doors, skylights, windows and doors that
     reflect or admit light and air into the halls, passageways or other public
     places in the Project shall not be covered or obstructed by any tenant, nor
     shall any bottles, parcels or other articles be placed on the window sills.

                                       2
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              15. No additional locks or bolts of any kind shall be placed upon
     any of the doors or windows by any tenant, nor shall any changes be made in
     existing locks or the mechanisms thereof unless Landlord is first notified
     thereof, gives written approval, and is furnished a key therefor. Each
     tenant must, upon the termination of his tenancy, give to Landlord all keys
     of stores, offices, or toilets or toilet rooms, either furnished to, or
     otherwise procured by, such tenant, and in the event of the loss of any
     keys so furnished, such tenant shall pay Landlord the cost of replacing the
     same or of changing the lock or locks opened by such lost key if Landlord
     shall deem it necessary to make such change.

              16. Landlord shall have the right to prohibit any advertising by
     any tenant which, in Landlord's opinion, tends to impair the reputation of
     the Project or its desirability as an office building and upon written
     notice from Landlord any tenant shall refrain from and discontinue such
     advertising.

              17. Landlord reserves the right to control access to the Project
     by all persons after reasonable hours of generally recognized business days
     and at all hours on Sundays and legal holidays. Each tenant shall be
     responsible for all persons for whom it requests after hours access and
     shall be liable to Landlord for all acts of such persons. Landlord shall
     have the right from time to time to establish reasonable rules pertaining
     to freight elevator usage, including the allocation and reservation of such
     usage for tenants' initial move-in to their premises, and final departure
     therefrom.

              18. Any person employed by any tenant to do janitorial work shall,
     while in the Project and outside of the Premises, be subject to and under
     the control and direction of the Office of the Project (but not as an agent
     or servant of Landlord, and the tenant shall be responsible for all acts of
     such persons).

              19. All doors opening on to public corridors shall be kept closed,
     except when being used for ingress and egress.

              20. The requirements of tenants will be attended to only upon
     application to the Office of the Project.

              21. Canvassing, soliciting and peddling in the Project are
     prohibited and each tenant shall cooperate to prevent the same.

              22. All office equipment of any electrical or mechanical nature
     shall be placed by tenants in the Premises in settings approved by
     Landlord, to absorb or prevent any vibration, noise or annoyance.

              23. No air-conditioning unit or other similar apparatus shall be
     installed or used by any tenant without the prior written consent of
     Landlord. Tenant shall pay the cost of all electricity use for
     air-conditioning in the Premises if such electrical consumption exceeds
     normal office requirements, regardless of whether additional apparatus is
     installed pursuant to the preceding sentence.

                                    EXHIBIT "B"
                                         3
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<PAGE>

              24. There shall not be used in any space, or in the public halls
     of the Project, either by any tenant or others, any hand trucks except
     those equipped with rubber tires and side guards.

              25. All electrical ceiling fixtures hung in offices or spaces
     along the perimeter of the Project must be fluorescent and/or of a quality,
     type, design and bulb color approved by Landlord. Tenant shall no permit
     the consumption in the Premises of more than 2 1/2 watts per net usable
     square foot in the Premises in respect of office lighting nor shall Tenant
     permit the consumption in the Premises of more than 1-1/2 watts per net
     usable square foot of space in the Premises in respect of the power outlets
     therein, at any one time. In the event that such limits are exceeded,
     Landlord shall have the right to require Tenant to remove lighting fixtures
     and equipment and/or to charge Tenant for the cost of the additional
     electricity consumed.

              26. PARKING.

                  (a) Garage hours shall be 7:00 a.m. to 7:00 p.m., Monday
through Friday, and closed on weekends, state and federal holidays excepted, as
such hours may be revised from time to time by Landlord.
                  (b) Automobiles must be parked entirely within the stall lines
on the floor.
                  (c) All directional signs and arrows must be observed.
                  (d) The speed limit shall be 5 miles per hour.
                  (e) Parking is prohibited in areas not striped for parking.
                  (f) Parking cards or any other device or form of
identification supplied by Landlord (or its operator) shall remain the property
of Landlord (or its operator). Such parking identification device must be
displayed as requested and may not be mutilated in any manner. The serial number
of the parking identification device may not be obliterated. Devices are not
transferable or assignable and any device in the possession of an unauthorized
holder will be void. There will be a replacement charge to the Tenant or person
designated by Tenant of $25.00 for loss of any parking card.
                  (g) The monthly rate for parking is payable one (1) month in
advance and must be paid by the third business day of each month. Failure to do
so will automatically cancel parking privileges and a charge at the prevailing
daily rate will be due. No deductions or allowances from the monthly rate will
be made for days parker does not use Parking Facilities.
                  (h) Tenant may validate visitor parking by such method or
methods as the Landlord may approve, at the validation rate from time to time
generally applicable to visitor parking.
                  (i) Landlord (and its operator) may refuse to permit any
person who violates the within rules to park in the garage, and any violation of
the rules shall subject the automobile to removal from the garage at the
parker's expense. In either of said events, Landlord (or its operator) shall
refund a prorate portion of the current monthly parking rate and the sticker or
any other form of identification supplied by Landlord (or its operator) will be
returned to Landlord (or its operator).
                  (j) Garage managers or attendants are not authorized to make
or allow any exceptions to these Rules and Regulations.

                                    EXHIBIT "B"
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                  (k) Every parker is required to park and lock their own
automobile. All responsibility for any loss or damage to automobiles or any
personal property therein is assumed by the parker.
                  (l) Loss or theft of parking identification devices form
automobiles must be reported to the garage manager immediately, and a lost or
stolen report must be filed by the parker at that time.
                  (m) The Parking facilities are for the sole purpose of parking
one automobile per space. Washing, waxing, cleaning or servicing of any vehicles
by the parker or his agents I prohibited.
                  (n) Landlord (and its operator) reserves the right to refuse
the issuance of monthly stickers or other parking identification devices to any
tenant and/or its employees who refuse to comply with the above Rules and
Regulations and all City, State or Federal ordinances, laws or agreements.
                  (o) Tenant agrees to acquaint all employees with these Rules
and Regulations.

                  (p) No vehicle shall be stored in the garage for a period of
more than one (1) week.

                                    EXHIBIT "B"
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<PAGE>

                                   EXHIBIT "C"

                           NOTICE OF LEASE TERM DATES
                        AND TENANT'S PROPORTIONATE SHARE

TO: _____________________________               DATE:  ________________________
    _____________________________
    _____________________________

RE:      Lease dated ______________, 19____, between___________________________
___________________________________("Landlord"), and___________________________
___________________________________("Tenant"), concerning Suite ___________,
located at ____________________________________________________.

Ladies and Gentlemen:

         In accordance with the Lease, Landlord wishes to advise and/or
confirm the following:

         1. That the Premises have been accepted herewith by the Tenant as
being substantially complete in accordance with the Lease and that there is no
deficiency in construction.

         2. That the Tenant has taken possession of the Premises and
acknowledges that under the provisions of the Lease the Term of said Lease
shall commence as of ______________ for a term of _________________________
ending on ______________________________________.

         3. That in accordance with the lease, Basic Rental commenced to
accrue on _______________________________________.

         4. If the Commencement Date of the Lease is other than the first day
of the month, the first billing will contain a prorata adjustment. Each
billing thereafter shall be for the full amount of the monthly installment as
provided for in said Lease.

         5. Rent is due and payable in advance on the first day of each and
every month during the Term of said Lease.  Your rent checks should be made
payable to ________________________________ at _______________________________
_____________________________________________.

         6. The exact number of rentable square feet within the Premises is
____ square feet.

                                    EXHIBIT "C"
                                         1
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<PAGE>

         7. Tenant's Proportionate Share, as adjusted based upon the exact
number of rentable square feet within the Premises is _______%.

AGREED AND ACCEPTED:

TENANT:

______________________________,
a_____________________________

By:   ________________________
      Its:____________________

                                    EXHIBIT "C"
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                                   EXHIBIT "D"

                               TENANT WORK LETTER

         This Tenant Work Letter shall set forth the terms and conditions
relating to the renovation of the tenant improvements in the Premises. This
Tenant Work Letter is essentially organized chronologically and addresses the
issues of the renovation of the Premises, in sequence, as such issues will
arise.

                                    SECTION 1

                 LANDLORD'S INITIAL CONSTRUCTION IN THE PREMISES

         Landlord has constructed, at its sole cost and expense, the base,
shell and core (i) of the Premises, and (ii) of the floor of the Project on
which the Premises is located (collectively, the "Base, Shell and Core").
Tenant has inspected and hereby approves the condition of the Base, Shell and
Core, and agrees that the Base, Shell and Core shall be delivered to Tenant in
its current "as-is" condition. The improvements to be initially installed in
the Premises shall be designed and constructed pursuant to this Tenant Work
Letter. Any cost of initial design and construction of any improvements to the
Premises shall be a "Tenant Improvement Allowance Item," as that term is
defined in Section 2.2. of this Tenant Work Letter.

                                    SECTION 2

                               TENANT IMPROVEMENTS

         2.1      TENANT IMPROVEMENT ALLOWANCE. Tenant shall be entitled to a
one-time tenant improvement allowance (the "Tenant Improvement Allowance") in
the amount of $301,180.00 (based upon $20.00 per useable square foot contained
within the Premises for the costs relating to the initial design and
construction of Tenant's improvements which are permanently affixed to the
Premises (the "Tenant Improvements"). In no event shall Landlord be obligated
to make disbursements pursuant to this Tenant Work Letter in a total amount
which exceeds the Tenant Improvement Allowance and in no event shall Tenant be
entitled to any credit for any portion of the Tenant Improvement Allowance
which is not used by Tenant on or before the date which is three (3) months
after the Commencement Date. Notwithstanding the foregoing, in the event costs
to be incurred for the Tenant Improvements exceed the Tenant Improvement
Allowance, Tenant may elect, by written notice to Landlord at any time on or
before the commencement of construction, to increase the Tenant Improvement
Allowance by up to Five Dollars ($5.00) per usable square foot contained
within the Premises ("Additional Allowance"). If Tenant exercises its option
to so increase the Tenant Improvement Allowance, Monthly Basic Rental for the
Premises shall be increased throughout the initial Term by an amount
sufficient to amortize the Additional Allowance over a ten (10) year term
based upon equal monthly payments of principal and interest, with interest
imputed on the outstanding principal balance at ten percent (10%) per annum.

                                    EXHIBIT "D"
                                         1
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<PAGE>

         2.2      DISBURSEMENT OF THE TENANT IMPROVEMENT ALLOWANCE.

                  2.2.1 TENANT IMPROVEMENT ALLOWANCE ITEMS. Except as
otherwise set forth in this Tenant Work Letter, the Tenant Improvement
Allowance shall be disbursed by Landlord (which disbursements shall be made
pursuant to Section 2.2.2 below) for costs related to the construction of the
Tenant Improvements and for the following items and costs (collectively, the
"Tenant Improvement Allowance Items"): (i) payment of the fees of the
"Architect" and the "Engineers," as those terms are defined in Section 3.1 of
this Tenant Work Letter, and payment of the fees incurred by, and the cost of
documents and materials supplied by, Landlord and Landlord's consultants in
connection with the preparation and review of the "Construction Drawings," as
that term is defined in Section 3.1 of this Tenant Work Letter; (ii) the cost
of permits, construction supervision fees and the cost of installing data and
voice cabling throughout the Premises; (iii) the cost of any changes in the
Base, Shall and Core required by the Construction Drawings; and (iv) the cost
of any changes to the Construction Drawings or Tenant Improvements required by
applicable building codes (the "Code").

                  2.2.2 DISBURSEMENT OF TENANT IMPROVEMENT ALLOWANCE. A check
for that portion of the Tenant Improvement Allowance used by Tenant for the
Tenant Improvement Allowance Items payable to Contractor and/or Tenant's
Agents (as applicable) shall be delivered by Landlord to Tenant within thirty
(30) days after Tenant provides Landlord with documentation reasonably
acceptable to Landlord that Tenant has paid for at least $451,770.00 in costs
for Tenant Improvement Allowance Items for the Premises, provided that Tenant
delivers to Landlord properly executed unconditional or conditional mechanics
lien releases in a form reasonably acceptable to Landlord together with
invoices from all of Tenant's Agents and all other information reasonably
requested by Landlord. Landlord shall only be obligated to make disbursements
from the Tenant Improvement Allowance to the extent costs are incurred by
Tenant for Tenant Improvement Allowance Items.

         2.3      STANDARD TENANT IMPROVEMENTS. Landlord shall be entitled to
designate specifications for any improvements in the Premises which are
visible from the exterior of the Building including, without limitation, any
window coverings.

                                    SECTION 3

                              CONSTRUCTION DRAWINGS

         3.1      SELECTION OF ARCHITECT/CONSTRUCTION DRAWINGS. Tenant shall
retain an architect/space planner reasonably approved by Landlord (the
"Architect") to prepare the "Construction Drawings," as that term is defined
in this Section 3.1. Tenant shall also retain the engineering consultants
reasonably approved by Landlord (the "Engineers") to prepare all plans and
engineering working drawings relating to the structural, mechanical,
electrical, plumbing, HVAC and lifesafety work of the Tenant Improvements.
Landlord agrees that, subject to the terms of this Tenant Work Letter, the
Tenant Improvements may be designed and constructed on a "design/build" basis.
The plans and drawings to be prepared by Architect and the Engineers hereunder
shall be known collectively as the "Construction Drawings." All Construction
Drawings shall comply with the drawing format and specifications as reasonably
determined by

                                    EXHIBIT "D"
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<PAGE>

Landlord, and shall be subject to Landlord's reasonable approval. Tenant and
Architect shall verify, the in the field, the dimensions and conditions as
shown on the relevant portions of the base building plans, and Tenant and
Architect shall be solely responsible for the same, and Landlord shall have no
responsibility in connection therewith. Landlord's review of the Construction
Drawings as set forth in this Section 3, shall be for its sole purpose and
shall not imply Landlord's review of the same, or obligate Landlord to review
the same, for quality, design, Code compliance or other like matters.
Accordingly, notwithstanding that any Construction Drawings are reviewed by
Landlord or its space planner, architect, engineers and consultants, and
notwithstanding any advice or assistance which may be rendered to Tenant by
Landlord or Landlord's space planner, architect, engineers, and consultants,
Landlord shall have no liability whatsoever in connection therewith and shall
not be responsible for any omissions or errors contained in the Construction
Drawings.

         3.2      FINAL SPACE PLAN. Tenant and the Architect shall prepare the
final space plan for Tenant Improvements in the Premises (collectively, the
"Final Space Plan"), which Final Space Plan shall include a layout and
designation of all offices, rooms and other partitioning, their intended use,
and equipment to be contained therein, and shall deliver the Final space Plan
to Landlord for Landlord's approval. Landlord may request clarification or
more specific drawings for special use items not included in the Final Space
Plan. Landlord shall advise Tenant within ten (10) days after Landlord's
receipt of the Final space Plan for the Premises if the same is unsatisfactory
or incomplete in any respect. If Tenant is so advised, Tenant shall promptly
cause the Final Space Plan to be revised to correct any deficiencies or other
matters Landlord may reasonably require.

         3.3      FINAL WORKING DRAWINGS. Upon Landlord's approval of the
Final Space Plan, Tenant, the Architect and the Engineers shall complete the
architectural and engineering drawings for the Premises, and the final
architectural working drawings in a form which is complete to allow
subcontractors to bid on the work and to obtain all applicable permits
(collectively, the "Final Working Drawings") and shall submit the same, or
components thereof prepared on a "design/build" basis, to Landlord for
Landlord's approval. Landlord may request clarification or more specific
drawings for special use items not included in the Final Working Drawings.
Landlord shall advise Tenant within ten (10) days after Landlord's receipt of
the Final Working Drawings for the Premises, or any component thereof, if the
same is unsatisfactory or incomplete in any respect. If Tenant is so advised,
Tenant shall promptly cause the Final Working Drawings (or such component) to
be revised to correct any deficiencies or other matters Landlord may
reasonably require.

         3.4      PERMITS. The Final Working Drawings shall be approved by
Landlord (the "Approved Working Drawings") prior to the commencement of the
construction of the Tenant Improvements. Tenant shall cause the Architect to
immediately submit the Approved Working Drawings to the appropriate municipal
authorities for all applicable building permits necessary to allow
"Contractor," as that term is defined in Section 4.1, below, to commence and
fully complete the construction of the Tenant Improvements (the "Permits"). No
changes, modification or alterations (except de minimis changes which shall be
reflected in the as-built drawings) in the Approved Working Drawings may be
made without the prior written consent of Landlord, which consent shall not be
unreasonably withheld or delayed.

                                    EXHIBIT "D"
                                         3
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<PAGE>

                                    SECTION 4

                     CONSTRUCTION OF THE TENANT IMPROVEMENTS

         4.1      CONTRACTOR. Tenant shall select either Tishman West or
Turner Construction as the general contractor for the Tenant Improvements and
shall notify Landlord upon such selection. The contractor so selected may be
referred to herein as the "Contractor."

         4.2      TENANT'S AGENTS. All subcontractors, laborers, materialmen,
and suppliers used by Tenant (such subcontractors, laborers, materialmen, and
suppliers, and the Contractor to be known collectively as "Tenant's Agents")
must be approved in writing by Landlord, which approval shall not be
unreasonably withheld or delayed. If Landlord does not approve any of the
Tenant's proposed subcontractors, laborers, materialmen or suppliers, Tenant
shall submit other proposed subcontractors, laborers, materialmen or suppliers
for Landlord's written approval. Notwithstanding the foregoing, Tenant shall
be required to utilize either (i) CSI Electric, Berg Electric, Angeles
Electric or J. H. Bryant Electric for any electrical work, and (ii) Air-Tech,
ACCO or Dahme Heating and Air Conditioning for any mechanical work.

         4.3      CONSTRUCTION CONTRACT; COST BUDGET. Prior to Tenant's
execution of the construction contract and general conditions with Contractor
(the "Contract"), Tenant shall submit the Contract to Landlord for its
approval, which approval shall not be unreasonably withheld or delayed. prior
to the commencement of the construction of the Tenant Improvements, and after
Tenant has accepted all bids for the Tenant Improvements, Tenant shall provide
Landlord with a detailed breakdown, by trade, of the final costs to be
incurred or which have been incurred in connection with the design and
construction of the Tenant Improvements to be performed by or at the direction
of Tenant or the Contractor, which costs form a basis for the amount of the
contract (the "Final Costs"). Tenant shall be responsible for any excess of
the amount of the Final Costs over the amount of the Tenant Improvement
Allowance.

         4.4      LANDLORD'S GENERAL CONDITIONS FOR TENANT'S AGENTS AND TENANT
IMPROVEMENT WORK. Tenant's and Tenant's Agent's construction of the Tenant
Improvements shall comply with the following: (i) the Tenant Improvements
shall be constructed in strict accordance with the Approved Working Drawings;
and (ii) Tenant shall abide by all rules made by Landlord's Project manager
with respect to the use of freight, loading dock and service elevators (if
any), storage of materials, coordination of work with the contractors of other
tenants, and any other matter in connection with this Tenant Work Letter,
including, without limitation, the construction of the Tenant Improvements.

         4.5      INDEMNITY. Tenant's indemnity of Landlord as set forth in
Article 13 of this Lease shall also apply with respect to any and all costs,
losses, damages, injuries and liabilities related in any way to any act or
omission of Tenant or Tenant's Agents, or anyone directly or indirectly
employed by any of them, or in connection with the Tenant's non-payment of any
amount arising out of the Tenant Improvements and/or Tenant's disapproval of
all or any portion of any request for payment. Such indemnity by Tenant, as
set forth in Article 13 of this Lease, shall also apply with respect to any
and all costs, losses, damages, injuries and liabilities related in any way to
Landlord's performance of any ministerial acts reasonably necessary (i) to
permit Tenant to

                                    EXHIBIT "D"
                                         4
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<PAGE>

complete the Tenant Improvements, and (ii) to enable Tenant to obtain any
building permit or certificate or occupancy for the Premises.

         4.6      REQUIREMENT OF TENANT'S AGENTS. Each of Tenant's Agents
shall guarantee to Tenant and for the benefit of Landlord that the portion of
the Tenant Improvements for which it is responsible shall be free from any
defects in workmanship and materials for a period of not less than one (1)
year from the date of completion thereof. All such warranties or guarantees as
to materials or workmanship of or with respect to the Tenant Improvements
shall be contained in the Contract or subcontract and shall be written such
that such guarantees or warranties shall inure to the benefit of both Landlord
and Tenant, as their respective interests may appear, and can be directly
enforced by either. Tenant covenants to give to Landlord any assignment or
other assurances which may be necessary to effect such right of direct
enforcement.

         4.7      INSURANCE REQUIREMENTS.

                  4.7.1 GENERAL COVERAGES. All of Tenant's Agents shall carry
workers' compensation insurance covering all of their respective employees,
and shall also carry public liability insurance, including property damage,
all with limits, in form and with companies as are required to be carried by
Tenant as set forth in Article 14 of this Lease.

                  4.7.2 SPECIAL COVERAGES. Tenant or Tenant's Contractor shall
carry "Builder's All Risk" insurance in an amount approved by Landlord
covering the construction of the Tenant Improvements, and such other insurance
as Landlord may reasonably require.

                  4.7.3 GENERAL TERMS. Certificates for all insurance carried
pursuant to this Section 4.7 shall be delivered to Landlord before the
commencement of construction of the Tenant Improvements and before the
Contractor's equipment is moved onto the site. All such policies of insurance
must contain a provision that the company writing said policy will given
Landlord thirty (30) days prior written notice of any cancellation or lapse of
the effective date or any reduction in the amounts of such insurance. In the
event that the Tenant Improvements re damaged by any cause during the course
of the construction thereof, Tenant shall immediately repair the same at
Tenant's sole cost and expense. Tenant's Agents shall maintain all of the
foregoing insurance coverage in force until the Tenant Improvements are fully
completed and accepted by Landlord. All policies carried under this Section
4.7 shall insure Landlord and Tenant, as their interests may appear, as well
as Contractor and Tenant's Agents. All insurance, except Workers'
Compensation, maintained by Tenant's Agents shall preclude subrogation claims
by the insurer against anyone insured thereunder. Such insurance shall provide
that it is primary insurance as respects the owner and that any other
insurance maintained by owner is excess and noncontributing with the insurance
required hereunder.

         4.8      GOVERNMENTAL COMPLIANCE. The Tenant Improvements shall
comply in all respect with the following: (i) all applicable codes and other
state, federal, city or quasi-governmental laws, codes, ordinances and
regulations, as each may apply according to the rulings of the controlling
public official, agent or other person; (ii) applicable standards of the
American Insurance Association (formerly, the National Board of Fire
Underwriters) and the National Electrical Code; and (iii) building material
manufacturer's specifications.

                                    EXHIBIT "D"
                                         5
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<PAGE>

         4.9      INSPECTION BY LANDLORD. Landlord shall have the right to
inspect the Tenant Improvements at all times, provided, however, that the
Landlord's failure to inspect the Tenant Improvements shall in no event
constitute a waiver of any of Landlord's rights hereunder nor shall Landlord's
inspection of the Tenant Improvements constitute Landlord's approval of the
same. Should Landlord disapprove any portion of the Tenant Improvements,
Landlord shall notify Tenant in writing of such disapproval and shall specify
the items disapproved. Any defects or deviations in, and/or disapproval by
Landlord of, the Tenant Improvements shall be rectified by Tenant at no
expense to Landlord, provided, however, that (i) in the event Landlord
determines that a defect or deviation exists or disapproves of any matter in
connection with any portion of the Tenant Improvements and such defect,
deviation or matter might adversely affect the mechanical, electrical,
plumbing, heating, ventilating and air conditioning or life-safety systems of
the Project, the structure or exterior appearance of the Project or any other
tenant's use of such other tenant's leased premises, Landlord may take such
action as Landlord deems necessary, at Tenant's expense and without incurring
any liability on Landlord's part, to correct any such defect, deviation and/or
matter, including, without limitation, causing the cessation of performance of
the construction of the Tenant Improvements until such time as the defect,
deviation and/or matter is correct to Landlord's satisfaction, and (ii) any
defects or deviations resulting from the requirements of the Engineers
designated by Landlord for tie-in of the systems of the Premises to the
systems of the Building pursuant to Section 3.1 above shall be the
responsibility of Landlord.

         4.10     NOTICE OF COMPLETION; COPY OF RECORD SET OF PLANS. Within
ten (10) days after completion of construction of the Tenant Improvements,
Tenant shall cause a Notice of Completion to be recorded in the office of the
Recorder of the appropriate County in accordance with Section 3093 of the
Civil Code of the State of California or any successor statute, and shall
furnish a copy thereof to Landlord upon such recordation. If Tenant fails to
do so, Landlord may execute and file the same on behalf of Tenant as Tenant's
agent for such purpose, at Tenant's sole cost and expense. At the conclusion
of construction, (i)Tenant shall cause the Architect and Contractor (A) to
update the Approved Working Drawings as necessary to reflect all changes made
to the Approved Working Drawings during the course of construction, (B) to
certify to the best of their knowledge that the "record-set" of as-built
drawings are true and correct, which certification shall survive the
expiration or termination of this Lease, and (C) to deliver to Landlord two
(2) sets of copies of such record set of drawings within ninety (90) days
following issuance of a certificate of occupancy for the Premises, and (ii)
Tenant shall deliver to Landlord a copy of all warranties, guaranties, and
operating manuals and information relating to the improvements, equipment, and
systems in the Premises.

                                    SECTION 5

                      COMPLETION OF THE TENANT IMPROVEMENTS

         The October 1, 1997 component of the definition of the Commencement
Date specified in Article 1.A of the Lease shall be extended one (1) day for
each day that Tenant is delayed in completing the Tenant Improvements in the
Premises as a result of an "Uncontrollable Delay" or a "Landlord Delay." The
term "Uncontrollable Delay" shall mean only an actual delay in the completion
of the Tenant Improvements resulting directly from fire, earthquake, flood,
acts of

                                    EXHIBIT "D"
                                         6
                                                                 Initials: ____
                                                                           ____

<PAGE>

God, industry-wide labor strikes or lockouts which objectively preclude Tenant
from obtaining labor or substitute materials necessary for completing the
Tenant Improvements, a moratorium on the issuance of governmental permits or
approvals or an extension of the time ordinarily required by applicable
governmental entities to issue such permits and approvals beyond the time
period normally required for such permits and approvals as of June 1, 1997
(but only where such extension is not due to (i) the acts or omissions of
Tenant, the Architect or the Contractor or any of Tenant's Agents or (ii) such
governmental entity's determination that any plans do not comply with
governmental laws, codes or other regulations) or any other cause beyond the
control of Tenant. The term "Landlord Delay" shall mean only an actual delay
in the completion of the Tenant Improvements which is directly caused by (a)
the failure of Landlord to provide authorizations or approvals within the time
periods set forth in this Tenant Work Letter; (b) the material interference by
Landlord with the completion of the Tenant Improvements or the refusal of
Landlord to permit Tenant's Agents reasonable access to the Premises as
required in this Tenant Work Letter; or (c) Landlord's failure to provide
Tenant with possession of the Premises for the purpose of constructing the
Tenant Improvements after the Final Working Drawings have been approved by
Landlord and Tenant has received all necessary governmental permits and
approvals. Notwithstanding anything to the contrary contained herein, neither
an Uncontrollable Delay nor a Landlord Delay shall include any of the
foregoing delays to the extent caused by the acts, omissions or misconduct of
Tenant, or Tenant's Agents. No Uncontrollable Delay or Landlord Delay shall be
deemed to have occurred unless Tenant has given Landlord written notice that
an act or omission on the part of Landlord or its agents is about to occur or
has occurred (with respect to an alleged Landlord Delay) or that an event
giving rise to an Uncontrollable Delay is about to occur or has occurred (with
respect to an Uncontrollable Delay) which will cause a delay in the completion
of the Tenant Improvements and Landlord has failed to cure such delay (with
respect to a Landlord Delay) or has failed to remedy the situation giving rise
to a potential Uncontrollable Delay (with respect to an alleged Uncontrollable
Delay) within one (1) business day after Landlord's receipt of such notice, in
which case the number of days of delay after such notice shall be a Landlord
Delay or an Uncontrollable Delay, as applicable.

                                    SECTION 6

                                  MISCELLANEOUS

         6.1      TENANT'S REPRESENTATIVE. Prior to commencement of
construction of Tenant Improvements, Tenant shall designate a representative
with respect to the matters set forth in this Tenant Work Letter, who, until
further notice to Landlord, shall have full authority and responsibility to
act on behalf of the Tenant as required in this Tenant Work Letter.

         6.2      LANDLORD'S REPRESENTATIVE. Prior to commencement of
construction of Tenant Improvements, Landlord shall designate a representative
with respect to the matters set forth in this Tenant Work Letter, who, until
further notice to Tenant, shall have full authority and responsibility to act
on behalf of the Landlord as required in this Tenant Work Letter.

         6.3      TIME OF THE ESSENCE IN THIS TENANT WORK LETTER. Unless
otherwise indicated, all references herein to a "number of days" shall mean
and refer to calendar days.

                                    EXHIBIT "D"
                                         7
                                                                 Initials: ____
                                                                           ____<PAGE>

                                  EXHIBIT 10.12

                    Agreement No. 00-H164 by and between the
                              City of Hawthorne and
                                   iNetVersity
                              dated April 20, 2000

<PAGE>

                              AGREEMENT NO. 00-H164

         THIS AGREEMENT is made and entered into this 1st day of July, 2000,
by and between the CITY OF HAWTHORNE, a municipal corporation, hereinafter
referred to as "City" and I-NETVERSITY, hereinafter referred to as "Vendor."

         WHEREAS, on July 12, 1983, City entered into Joint Powers Agreement
No. 83-100 along with several other cities for the purpose of providing for
the delivery of employment training services to participants of the South Bay
Service Delivery Area (SBSDA); and

         WHEREAS, the City has entered into agreements with several California
Workforce Investment Areas for the purpose of providing for the delivery of
employment training services under the Federal Workforce Investment Act of
1998 (WIA), Welfare-to-Work and other eligible grant participants; and

         WHEREAS, pursuant to said Agreements, City is receiving and will be
receiving federal funds from the Family Economic Security Act, as amended, and
the Workforce Investment Act and its implementing regulations for the purpose
of providing training to eligible participants; and

         WHEREAS, on MARCH 5, 1996, the City of Inglewood and vendor entered
into Agreement No. 96-67 to provide Classroom Training Individual Referral
services under the Job Training Partnership Act (JTPA); and

         WHEREAS, vendor proposes to renew, with no changes, existing
Agreement No. 96-67, which expired on June 30, 2000; and

         WHEREAS, vendor has submitted a successful proposal and other
documentation showing its business operations; and

                                       1

<PAGE>

         WHEREAS, the City of Hawthorne is the Administrative Entity for the
South Bay Workforce Investment Area; and

         WHEREAS, vendor represents itself as being qualified and capable of
providing said services in accordance with all the rules and regulations
developed to implement said statutes and in accordance with the terms and
conditions of this agreement;

         NOW, THEREFORE, in consideration of these recitals and the mutual
obligations provided herein, the parties hereto agree as follows: premises the
parties hereto agree as follows:

-- VENDOR REQUIREMENTS/RESPONSIBILITIES

         Vendor shall be required to provide classroom training in accordance
with Classroom Training Individual Referral (CTIR) contract requirements and
as set forth in the Exhibits which are listed below, attached hereto and
incorporated herein by this reference:

         Exhibit "A" - Program Outline

         Exhibit "B" - Completion Competencies

         Exhibit "C" - Vendor Required Documents

         Exhibit "D" - Program Plan and Performance Standards

         Exhibit "E" - Statement of Business Ownership for Vendors

         Exhibit "F" - Debarment and Suspension Certificate

         Exhibit "G" - Lobbying Certification

         Exhibit "H" - Non-Discrimination Clause

         Further Responsibilities

         Vendor shall:

                  Provide services funded under this agreement only to
                           individuals determined eligible under WIA guidelines
                           as designated by the South Bay Workforce Investment
                           Area and City.

                  Provide facilities which are adequate to fulfill the
                           requirements of this contract.

                                       2

<PAGE>

                  Provide documents as set forth in Exhibit "C," before this
                           contract can be implemented.

                  Provide services as described in Program Plan, Exhibit "D."

         Reports and Records

                  Vendor agrees to provide reports, books, records and data
                           related to program activities funded by this
                           Agreement, in addition to those expressly required by
                           other provisions of this Agreement, as may be
                           requested by the City, its agents or designees. Upon
                           written request, attendance records shall be
                           submitted to case manger(s), or other responsible
                           party(s) on a monthly basis, and/or every two (2)
                           weeks if participant is receiving needs-based, or
                           needs-related payments.

                  Retention of Records

         Vendor agrees to retain all records pertinent to all grants, funds or
agreements under the Workforce Investment Act, including financial,
statistical, property, and participant records and supporting documentation
for a period of three years from the date of submission to the State of the
final expenditure report for the program year's allotment. Records for
non-expendable property shall be retained for a period of three years after
final disposition of the property. Records described herein shall be retained
beyond the prescribed period if any litigation or audit is begun or if a claim
is instituted involving the grant or agreement covered by the records. In
these instances, Vendor will retain the records until the litigation, audit,
or claim has been finally resolved. Records must be retained locally to be
accessible to the City, the South Bay Workforce Investment Area, its agents or
designees.

                  Inspection

         Such records, reports, books, financial statements, and other
documents required herein shall be opened to inspection by and permitted
access to City, the South Bay Workforce Investment Area, its designees or
agents, the State, independent auditor(s), and/or the United States Department
of Labor, or designees of any of these agencies at any time during Vendor's
normal business hours.

                  Report Reconciliation

         Vendor shall reconcile monthly MIS participant rosters within ten
(10) business days from the last day of the prior month to verify enrollments,
completions, and terminations. Referring entity/case manager shall be notified
in writing of any required adjustments.

                  Vendor Cooperation

         Vendor shall fully cooperate with authorized representatives of the
South Bay Workforce Investment Area, its designees or agents, the City, State
and Federal governments including independent auditors, seeking to interview
any program participant or staff member of Vendor,

                                       3

<PAGE>

or to evaluate, inspect and/or monitor those facilities and operations of
Vendor that are directly involved in the implementation of programs funded
through this Agreement.

         Performance Review

         Vendor performance will be reviewed quarterly by assigned staff or
committees and will be based on program performance as detailed in Exhibit "D."

         Monitoring

         Monitoring of activities funded through this Agreement, including
unscheduled site visits, will be conducted throughout the contract period to
assure program quality. The Vendor agrees to be responsible for the internal
monitoring of all activities encompassed by this Agreement.

-- CONFIDENTIALITY REQUIREMENTS

         Contractor shall maintain the confidentiality of any information
                  regarding Participants, and the immediate family of any
                  applicant of Participant that identifies or may be used to
                  identify them and which may be obtained through application
                  forms, interviews, tests, reports from the public agencies,
                  counselors, or any other source. The Contractor shall not
                  divulge such information without the permission of the
                  Participant, except for disclosures required by court process,
                  order, or decree, and except that information which is
                  necessary for purposes related to the performance or
                  evaluation of the Agreement may be divulged to parties having
                  responsibilities under the Agreement for monitoring or
                  evaluating vendor performance and services. These discourses
                  are limited to governmental authorities and to the extent
                  necessary for the proper administration of the program.

         Confidentiality of State/County Records

         Confidential information pertains to any data that identifies an
individual, or an employing unit. Confidential information is not open to the
public and requires special precautions to protect it from loss, unauthorized
use, access, disclosure, modification, and destruction. The sources of
information may include, but are not limited to, Employment Development
Department, the California Department of Social Services, the California
Department of Education, the County Welfare Department(s), Directors of Child
Support, the Office of the District Attorney, the California Department of
Mental Health, the California Office of Community Colleges and the Department
of Alcohol and Drug Programs. The Contractor agrees to:

                  Keep all information furnished by State/County agencies
                           strictly confidential, and make the information
                           available to its own employees only on a
                           "need-to-know" basis, as specifically authorized in
                           this Agreement. Instruct all employees with
                           State/County information access regarding the
                           confidentiality of this information and of the
                           penalties for unauthorized use or disclosure found in
                           Section 1798.55 of the Civil Code; Section 502

                                       4

<PAGE>

                           of the Penal Code; Section 2111 of the Unemployment
                           Insurance Code; Section 10850 of the Welfare and
                           Institutions Code and other applicable local, State
                           and federal laws.

                  Store and process information electronically, in a manner that
                           renders it unretrievable by unauthorized computer,
                           remote terminal, or other means. State/County
                           confidential information should be returned promptly
                           and/or, all copies/derivations should be destroyed
                           when no longer in use. An approved method of
                           confidential information destruction should be used:
                           shredding, burning, or certified/witnessed
                           destruction. Magnetic media are to be demagnetized,
                           or returned to appropriate agency. In no event shall
                           said information be disclosed to any individual
                           outside of the Contractor staff, and/or their
                           employees.

-- CERTIFICATION REGARDING CHILD SUPPORT
         COMPLIANCE PROGRAM

         Contractor, by signing this Agreement, hereby certifies compliance
with the Child Support Compliance Act of the State of California, as
implemented by the Employment Development Department. Contractor assures that
to the best of its knowledge, it is fully complying with the earnings
assignment orders of all employees, and is providing the names of all new
employees to the New Hire Registry maintained by the California Employment
Development Department. Contractor recognizes and acknowledges the importance
of child and family support obligations and shall fully comply with applicable
state and federal laws relating to child and family support enforcement,
including, but not limited to, disclosure of information and compliance with
earnings assignment orders, as provided in Chapter 8 (commencing with Section
5200) Part 5 of Division 9 of the Family Code. Contractor's failure to comply
with these requirements may result in suspension of payments under the
Agreement or termination of the Agreement or both and the Contractor may be
ineligible for award of future Agreements if City determines that any of the
following has occurred: (1) False certification, or (2) Violation of the
certification by failing to carry out the requirements as noted above.

-- COMPLAINT RESOLUTION PROCEDURES

         South Bay Workforce Investment Area establishes Complaint Resolution
                  Procedures under the Job Training Partnership Act (JTPA)
                  pursuant to Title 20 CFR, Section 627.504 and Section 144 and
                  the Workforce Investment Act (WIA) as amended.

                  Contractor shall comply with the South Bay Workforce
                           Investment Area WIA Complaint Resolution Procedures,
                           and any changes incorporated therein during the term
                           of this Agreement, in the resolution of complaints
                           alleging a violation of the WIA, the WIA regulations,
                           the grant or any other Agreements under the Act.
                           South Bay Workforce Investment Area shall furnish a
                           copy of its procedures to Contractor upon execution
                           of this Agreement.

                                       5
<PAGE>

                  Contractor shall provide to each eligible participant and
                           staff a copy and/or summary of the South Bay
                           Workforce Investment Area WIA Complaint Resolution
                           Procedures during orientation. In the event that
                           Contractor subcontracts with another party for the
                           provisions of training or job development services to
                           a participant, the subcontractor shall require that
                           the participant receive access to WIA grievance
                           procedures at each tier of service. Contractor shall
                           maintain written documentation that each WIA staff
                           person and participant has received information
                           regarding the South Bay Workforce Investment Area WIA
                           Complaint Resolution Procedures.

         Contractor WIA Participant Complaint Resolution Procedures

                  Contractor (with the exception of those providing Classroom
                           Training exclusively) shall develop and maintain
                           procedures for the resolution of complaints involving
                           the terms and conditions of participant employment.
                           Classroom Training contractors shall provide WIA
                           participants with copies of the South Bay Workforce
                           Investment Area grievance procedures and shall
                           instruct participants that they have the option of
                           filing complaints directly with the South Bay
                           Workforce Investment Area.

                  Contractor shall provide each participant with a copy of its
                           internal WIA participant complaint resolution
                           procedures upon enrollment into the program or during
                           orientation. In the event that Contractor
                           subcontracts with another party for the provisions of
                           training or job development services to a
                           participant, the subcontractor shall require that the
                           participant receive access to WIA grievance
                           procedures at each tier of service. Contractor shall
                           maintain written documentation that each WIA staff
                           person and participant has received information
                           regarding the South Bay Workforce Investment Area
                           Complaint Resolution Procedures.

         Contractor shall not discriminate or retaliate against any person, or
                  deny to any person a benefit to which that person is entitled
                  under the provisions of the WIA Act or WIA Regulations because
                  such person has filed a complaint, has instituted or caused to
                  be instituted any proceeding under or related to the Act, has
                  testified or is about to testify in any such proceeding or
                  investigation, or has provided information as assisted in any
                  investigation.

         Contractor shall permit the Directorate of Civil Rights (or a
                  representative) access to its premises, participants,
                  employees, books, and papers should the need arise during a
                  complaint investigation.

-- COMPENSATION

         The parties agree that this shall be a tuition reimbursement contract.
                  Compensation for the services covered by this Agreement shall
                  be at a rate less than or equal to the published tuition rate
                  of Vendor, and shall be disbursed in accordance with tuition
                  reimbursement and refund policies agreed to by Vendor. City
                  shall be reimbursed

                                       6

<PAGE>

                  any amount of Pell or other Education Assistance payments
                  made to Vendor for training costs on behalf of WIA
                  participants or, if needed, City may negotiate the use of
                  the Pell grant to meet the supportive service(s) needs of
                  participant(s). Fifty percent (50%) of tuition is paid upon
                  verification that participant has completed one-half of
                  total training hours as stipulated herein. The remaining 50%
                  payment is made upon verification of completion of training,
                  or on a prorata basis in accordance with vendor's tuition
                  refund policy. The City shall be entitled to the same refund
                  policy and procedures as applied to all other students. City
                  shall process the billing as received and issue payment
                  therefore as soon as reasonably practicable and in the
                  ordinary course of City business. Compensation shall be made
                  as stipulated herein and in accordance with South Bay
                  Workforce Investment Area/WIA directives, and tuition
                  reimbursement procedures.

         Upon enrollment, vendor shall submit to South Bay Workforce Investment
                  Area, a voucher with an original copy of the referring
                  training voucher, and a copy, signed by vendor and
                  participant, of the school's Enrollment Agreement Form for the
                  participant. Payment equal to 50% of all costs of tuition,
                  books, supplies, and registration fees as stipulated herein
                  shall be made to vendor per participant upon verification that
                  participant has completed 50% of total training hours as
                  evidenced by time sheets, attendance records signed by the
                  participant, or by any other process determined by South Bay
                  Workforce Investment Area. The balance of payable costs shall
                  be reimbursed to Vendor upon verification of completion of
                  training, or on a prorate basis per training hour completed
                  for those participants who do not complete training. South Bay
                  Workforce Investment Area must verify receipt of participant's
                  WIA Registration Form and WIA Enrollment Form prior to all
                  payments.

         (1)      MICROSOFT CERTIFIED SYSTEMS ENGINEERING (700 HOURS). In no
                  case can the total amount of expenditure by City under this
                  agreement exceed the sum of $10,900.00 for tuition, books and
                  registration fees per participant trained in the
                  training-related occupations of Microsoft Certified Systems
                  Engineering in accordance with Exhibits "A" and "B."

         C. (2) MICROSOFT CERTIFIED PRODUCT SPECIALIST - NT (400 HOURS). In no
case can the total amount of expenditure by City under this agreement exceed the
sum of $5,500.00 for tuition, books and registration fees per participant
trained in the training-related occupations of Microsoft Certified Product
Specialist-NT in accordance with Exhibits "A" and "B."

         C. (3) MICROSOFT CERTIFIED PRODUCT SPECIALIST-WEB (396 HOURS). In no
case can the total amount of expenditure by City under this agreement exceed the
sum of $5,500.00 for tuition, books and registration fees per participant
trained in the training-related occupations of Microsoft Certified Product
Specialist-Web, in accordance with Exhibits "A" and "B."

         The City reserves the right to withhold or refuse payment for the late
                  forms, including invoices, required from the Vendor and/or
                  referring entity(s). City/South Bay Workforce Investment Area
                  reserves the right to withhold or refuse payment for any
                  portion of service(s) or consideration not rendered by Vendor.
                  No payment

                                       7

<PAGE>

                  will be received by any participant as stipulated herein. In
                  accordance with Vendor's tuition refund policies, applicable
                  State tuition refund requirements, and/or as mutually agreed
                  and stipulated herein, the payable costs shall be reimbursed
                  to vendor upon verification of completion of training or on
                  a prorata basis per training hour completed for those
                  participants who do not complete the training. In every
                  case, the more restrictive of these provisions shall prevail.

         City also reserves the right to make compensation payments to vendor at
                  any time during the Agreement period. City reserves the right,
                  in order to comply with Federal or State expenditure
                  guidelines, to make compensation payments to vendor for
                  services obligated to be performed, but not yet completed.

         The sum(s) agreed to in Section V.C shall include all costs associated
                  with training and placement services which are to be provided
                  under this agreement. Increase in training costs are permitted
                  once within a twelve month period providing established South
                  Bay Workforce Investment Area criteria is met. Exception to
                  this policy will only occur when Vendor provides an itemized
                  summary in writing identifying the source(s) for the increase,
                  and includes acceptable supportive documentation for
                  evaluation and approval by South Bay Workforce Investment
                  Board (SBWIB). Vendor shall make no additional claims for
                  costs, charges, or fees, nor shall Vendor receive additional
                  payment or any form of reimbursement from the City, south Bay
                  Workforce Investment Area, individual participants or any
                  other party, other than as specifically detailed in this
                  Agreement.

-- TERM OF AGREEMENT

         Vendor shall commence performance under the terms of this agreement as
of the date of the City's notice to proceed. Unless sooner terminated as
provided herein, this agreement shall expire on June 30, 2002. However, Vendor
may continue to perform, complete and be compensated for services rendered after
June 30, 2002 for those activities covered by this Agreement and begun prior to
said expiration date.

-- MODIFICATIONS

         This contract fully expresses the agreement of the parties. Any
modification or amendment of the terms or conditions of this contract must be by
means of a separate written document approved by the City. No oral conversation
between any officer or employee of the parties shall modify this contract in any
way.

-- DISPUTES AND BREACH

         Disputes

         Any dispute between City and vendor arising from this contract shall be
reviewable in accordance with procedures set forth in 20 CFR subpart E and EDD
procedures for JTPA grievances, Title 22 CAC Section 4501-1 et seq.

         Breach

                                       8

<PAGE>

         In the event any party fails to perform, in whole or in part, any
promise, covenant, or agreement herein, or should any representation made by it
be untrue, any aggrieved party may avail itself of all rights and remedies, at
law or equity, in the courts of law. Said rights and remedies are cumulative of
those provided for herein with respect to termination, if any, except that in no
event shall any party recover more than once, suffer a penalty or forfeiture, or
be unjustly compensated.

-- TERMINATION AND SUSPENSION OF FUNDING

         Suspension

                  It is mutually understood and agreed that failure to comply
                           with any provisions of this contract, its Exhibits
                           and Attachments is cause for suspension of payments
                           and/or referrals.

                  City may immediately suspend payments to Vendor prior to
                           termination of the Agreement in whole or in part for
                           the following cause(s):

                           Failure  to comply in any material respect with
                                    either the terms and/or conditions of this
                                    Agreement.

                           Submittal or City and/or Administrative Entity of
                                    reports which are incorrect or incomplete in
                                    any substantial or material respect.

                           Termination or suspension of grant(s) to City from
                                    the Federal or State Governments.

                           Failure of Vendor to accept and/or implement any
                                    additional conditions that may be required
                                    by law, by the Federal government, Executive
                                    Order or by regulation of the State, or its
                                    agencies responsible for the operation of
                                    this program, or South Bay Workforce
                                    Investment Area.

                  Upon suspension of funds, for whatever reason, Vendor agrees
                           not to expend any further funds related to the
                           performance of this Agreement without the express,
                           written consent of City.

         Termination.

                  This Agreement may be terminated in whole or in part by City
                           for cause, which shall include:

                           Failure for any reason of the Vendor to fulfill in a
                                    timely and proper manner any of the its
                                    obligations under this Agreement.

                           Suspension or termination by the Department of Labor
                                    or the State of the grant to City and/or
                                    Administrative Entity under which this
                                    Agreement is made.

                                       9

<PAGE>

                           Improper use by Vendor of funds furnished under this
                                    Agreement.

                           Failure to meet performance standards as stipulated
                                    in Exhibit "D," attached.

                  This Agreement may be canceled by either party without cause
                           upon 30 days written notice prior to the effective
                           date of such termination, which shall be specified in
                           the notice.

                  Upon termination or cancellation of this Agreement, Vendor
                           shall be responsible for preparation of close out
                           reports and transmittal to City of all documents
                           which are in the possession of Vendor that relate to
                           the conduct of the program within the time and within
                           the manner prescribed by City. Final payment to
                           Vendor under this Agreement will be made only after
                           City has determined that Vendor has satisfactorily
                           completed said close-out procedures.

-- ASSIGNMENTS AND SUBCONTRACTS

         Vendor shall neither assign this contract nor enter into any
subcontract for the performance of services required herein without securing the
prior consent of City.

-- INSURANCE

         General Liability Insurance.

         Vendor shall procure and maintain general liability insurance
protecting Vendor and City, its officers, employees, and agents against claims
arising from bodily injury or death to persons occurring on Vendor's business
premises or otherwise through Vendor's operation or performance under this
Agreement. Said insurance shall consist of combined single limit liability
coverage in an amount of $1,000,000 or equivalent coverage as approved by the
Chief Counsel of City.

         Automobile Insurance

         If a Vendor, in conducting activities under this agreement, uses motor
vehicles, the Vendor shall insure that the City, its officers, employees, and
agents are held harmless against claims arising from the ownership, maintenance
or use of said motor vehicles. In addition, Vendor shall provide insurance
through a commercial insurance company authorized to do business in the State of
California. The coverage shall be $1,000,000 combined single limit liability, or
such other equivalent coverage approved by the Chief Counsel for the City.

         Workers' Compensation

         Vendor shall provide workers' compensation insurance coverage and
benefits or, if applicable, other comparable insurance coverage such as medical
and accident insurance for those participants not qualifying as employed under
workers' compensation, as required by State or Federal law.

                                      10

<PAGE>

         Certificates of Insurance

         Vendor shall furnish to City evidence of any insurance required by this
Agreement. A Certificate of Insurance from an insurer admitted to do business in
the State of California will be provided, indicating that the respective
policy(s) meets the following requirements:

                  The City, its officers, employees, and agents shall be named
                           as additional insured.

                  Insurance shall not be canceled or terminated without 30 days
                           written notice to City.

                  Insuranceshall be primary and any insurance held by City for
                           its own protection shall be excess and shall be
                           effective only upon exhaustion of Vendor's insurance.

                  Insuranceshall be maintained for the duration of the
                           Agreement, including any period extended beyond the
                           expiration date of this Agreement required to
                           complete performance as stipulated in Section III.

         Self-Insurance.

         Notwithstanding the insurance required above, the City, at its own
option, may accept as an equivalent for any such coverage, evidence of an
ongoing program of self-insurance together with excess coverage. Said
equivalent, in order to satisfy the requirements herein contained, shall be
subject to approval of the Chief Counsel of the City.

         Insurance for Internships/Externships.

         Vendor will be responsible for maintaining the appropriate insurance
coverage required above for participants during any internships/externships
required in the performance of this Agreement.

         Fidelity Bond.

         In the event City chooses to make payment required herein by this
Agreement by way of advancement as opposed to reimbursement, Contractor shall be
required to provide and maintain a blanket fidelity bond which shall apply to
the performance of any direct to, officer or agent of Contractor who signs or
authorizes signatures on checks or drafts or in any manner authorizes the
disbursement of project funds. Prior to the payment of program funds, by City,
Contractor shall furnish City a certificate of insurance from an insurer
admitted to do business in the State of California verifying the Contractor
carries such a bond. Said insurance certificate shall (1) name the City as
additional insured with a provision for direct payment to the City in the event
of loss and (2) provide that said bond shall not be canceled or terminated
without 30 days written notice to City. Contractor hereby assigns to City any
right it has to claim indemnification under such bond. The amount of the bond
shall be no less than $50,000 or the highest advance planned for the present
Agreement, whichever is higher.

                                      11

<PAGE>

-- HOLD HARMLESS

         Vendor agrees to indemnify, defend, save and hold harmless City, its
officers, employees, and agents against any and all costs, expenses, claims,
suits, and liability for bodily or personal injury to or death of any person and
for injury to or loss of any property, or for any indebtedness or obligations,
resulting therefrom or arising out of an in any way connected with the alleged
negligent or wrongful acts or omissions of Vendor, its officers, employees,
vendors, agents or representatives, in performing or failing to perform any
services required herein to be performed by Vendor or incurred by Vendor in
disbursing or using any WIA funds under this Agreement.

         City, its officers, employees, and agents, by this Agreement shall not
assume any liability nor shall they be liable for the negligent or wrongful acts
or omissions or for any indebtedness or obligations of Vendor or any of its
officers, employees, vendors, agents or representatives thereof attributable to
the services required to be performed or caused by the disbursement and use of
WIA funds by Vendor under this Agreement.

-- OCCUPATIONAL SAFETY AND HEALTH ACT

         Vendor agrees to provide all participants with safety and health
protection which shall be at least as effective as that which would be required
under the Occupational Safety Health Act of 1970 as amended if the participants
were employees of the Vendor. Vendor shall also comply with the provisions of
the California Occupational Safety and Health Act as amended.

-- FEDERAL, STATE AND LOCAL COMPLIANCE

         Vendor shall comply with the Americans with Disabilities Act (ADA) of
1990; the California Public Records Act; applicable Drug Free Workplace
requirements; all other Federal, State and local laws, rules and regulations
applicable to the performance of this agreement; policies and operating
requirements of City and the South Bay Workforce Investment Area; applicable
sections of the South Bay Workforce Investment Area Operations Manual; as well
as applicable provisions and standards promulgated by the Department of Labor as
they apply to vendor.

         If regulations are amended or revised, Vendor shall comply with them or
notify City within 30 days after promulgation of amendments or revisions that it
cannot so conform.

-- DRUG FREE WORKPLACE COMPLIANCE

         Vendor shall comply with GOVERNMENT CODE Section 8355, in matters
relating to providing a drug-free workplace as follows:

         Publish a statement notifying employees/participants that unlawful
                  manufacture, distribution, dispensation, possession, or use of
                  a controlled substance is prohibited and specifying actions to
                  be taken against employees/participants for violations, as
                  required by Government Code 8355(a).

         Establisha Drug-Free Awareness Program as required by Government Code
                  Section 8355(b), to inform employees/participants about all of
                  the following:

                                      12
<PAGE>

                  The dangers of drug abuse in the workplace;

                  The person's or vendor's policy of maintaining a drug-free
                           workplace;

                  Any available counseling, rehabilitation and
                           employee/participant assistance programs; and

                  Penalties that may be imposed upon employees/participants for
                           drug abuse violations.

         Provide as required by Government Code Section 8355(c), that every
                  employee/participant who works on the proposed contract or
                  grant:

                  Will receive a copy of the vendor's drug-free policy
                           statement, and

                  Will agree to abide by the terms of the vendor's statement as
                           a condition of employment/training on the contract or
                           grant.

         Vendor may be subject to suspension of payments or termination for
failure to carry out the requirements of GOVERNMENT CODE Section 8355(a) to (c).

-- FISCAL ACCOUNTABILITY

         Vendor shall maintain a sound, auditable financial management system,
based upon generally accepted accounting principles (GAAP).

-- NOTICES

         All notices to be given in accordance with this Agreement shall be
deemed served by (1) enclosing same in a sealed envelope addressed to the party
intended to receive the same at the address indicated herein and deposited
postage prepaid in the United States Postal Service, or by (2) personal service.
For these purposes, the addresses of the parties shall be as follows:

                                      13

<PAGE>

                  City
                  ----

                  City of Hawthorne

                  South Bay Workforce Investment Area

                  c/o One Manchester Blvd.

                  Inglewood, California  90301

                  Contact:  Peggy Aldridge

                  Phone:  310/412-5558

                  FAX:  310/412-4252

                  VENDOR

                  I-Net Versity

                  19951 Mariner Ave., Suite 100

                  Torrance, California  90503

                  Contact:  C. Cajayon

                  Office Phone:  (310)921-1999

                  Fax Phone:  (310) 370-2205

- AUDITS

         Vendor shall adhere to applicable requirements of OMB Circular A-133.

- DEBARMENT AND SUSPENSION CERTIFICATION

         In accordance with Executive Order 12549, Debarment and Suspension, 29
CFR Part 98, Section 98.510, Vendor shall complete a Debarment and Suspension
Certification and shall obtain Debarment and Suspension certifications as a
precondition for non-mandatory awards to subrecipients awarded procurement(s) in
excess of $25,000. Such certification assures that Federal funds are not
provided to parties that are "debarred, suspended, ineligible, or voluntarily
excluded" in the current FEDERAL LIST OF PARTIES EXCLUDED FROM PROCUREMENT OR
NON-PROCUREMENT PROGRAMS.

- NONEXPENDABLE PROPERTY

         The City reserves the right to determine the final disposition of said
nonexpendable property. The property shall be used and maintained by the
Contractor as follows:

                                      14

<PAGE>

         1) Property shall be used solely in the performance of this Agreement.

         2) No modifications shall be made to the property without the prior
written approval of the City.

         The Contractor shall comply with the provisions of JTPA Directive
97-17, Property Management, on all non-expendable property received under the
Private Industry Council Aerospace Network (PAN) projects.

- ENTIRE AGREEMENT

                                      15

<PAGE>

         This Agreement, including all Exhibits, constitutes the entire
Agreement of the parties and supersedes any previous oral negotiations or
written expressions of intent between the parties.

         IN WITNESS WHEREOF, the parties hereto have agreed on this date and
year first above written.

                                     VENDOR

By:
               -----------------------------------------------

Signature:
               -----------------------------------------------

Name:
               -----------------------------------------------

Title:
               -----------------------------------------------

                                CITY OF HAWTHORNE

                                                                   City Manager
-------------------------------------------------------------------

APPROVED BY:

                                                                   City Attorney
-------------------------------------------------------------------

                              APPROVED AS TO FORM:

                    ----------------------------------------
                           John Riess, Attorney-at-Law

                                      16

<PAGE>

                               TABLE OF CONTENTS
                               -----------------

                                                                           PAGE
                                                                           ----

                                    EXHIBITS

1.       EXHIBIT "A" - PROGRAM OUTLINE

2.       EXHIBIT "B" - COMPLETION COMPETENCIES

3.       EXHIBIT "C" - VENDOR REQUIRED DOCUMENTS

4.       EXHIBIT "D" - PROGRAM PLAN/PERFORMANCE STANDARDS

5.       EXHIBIT "E" - STATEMENT OF BUSINESS OWNERSHIP

6.       EXHIBIT "F" - DEBARMENT AND SUSPENSION CERTIFICATION

7.       EXHIBIT "G" - LOBBYING CERTIFICATION

8.       EXHIBIT "H" - NON-DISCRIMINATION CLAUSE

<PAGE>

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

                                    EXHIBIT A

                                 PROGRAM OUTLINE
-------------------------------------------------------------------------------

TITLE OF TRAINING PROGRAM:        Microsoft Certified Systems Engineer (MCSE)

TYPE OF TRAINING:                 Classroom Training

BRIEF DESCRIPTION OF TRAINING TO BE PROVIDED: Vendor shall conduct
occupational skill training of MCSE in an institutional setting for JTPA
eligible participants. Vendor will ensure that individuals acquire the skills,
knowledge, and abilities necessary to perform a training related job as a
network administrator, computer technician for which demand exceeds supply.

PREVAILING AVERAGE ENTRY WAGE FOR OCCUPATION:         $15.00/Hour

MAXIMUM TOTAL COST PER STUDENT:                       $10,900

<TABLE>
------------------------------------------------------------------------------------------------
<S>                      <C>             <C>                                      <C>
Cost Breakdown:                          License Fee                              $
------------------------------------------------------------------------------------------------
Tuition                  $10,825              Tools     n/a                       $n/a
------------------------------------------------------------------------------------------------
Registration             $75.00               Testing Fee (Identify)  included    $included
------------------------------------------------------------------------------------------------
Books                    included                                                 $
------------------------------------------------------------------------------------------------
Supplies & Materials     included                                                 $
------------------------------------------------------------------------------------------------
Uniform(s)               n/a                  Externships:  Yes  x  No            when applicable
------------------------------------------------------------------------------------------------
Physical Exams           n/a                  No. of hours included with course   700/Hrs
------------------------------------------------------------------------------------------------
State Exams              n/a                  No. of hours following completion   n/a
                                              of course
------------------------------------------------------------------------------------------------
</TABLE>

COURSE SCHEDULE (INCLUDE CLASS TOTALS):

<TABLE>

<S>                                              <C>                          <C>                       <C>
Day Class Hours:  9:00 a.m. to 5:00 p.m.         Days of Instruction:  M-F    Total Course Hrs.  700    Total Wks.  20

Afternoon Class Hours:                           Days of Instruction:         Total Course Hrs.         Total Wks.

Evening Class Hours:  6:00 p.m. to 10:00 p.m.    Days of Instruction:  M-Th   Total Course Hrs.  700    Total Wks  43

</TABLE>

<PAGE>

-------------------------------------------------------------------------------
                              EXHIBIT A (CONTINUED)

                                PROGRAM OUTLINE
-------------------------------------------------------------------------------

TRAINING-RELATED JOBS:                   DICTIONARY OF OCCUPATIONAL TITLES CODE
                                        (DOT CODE):

1.       Network Administrator           031.132-010

2.       Software Programmer             031.132-010

3.       Computer Technician             032.262-010

4.       Product Specialist              031.262-014

5.       Network IT Manager:             031.132-010

THE FOLLOWING ENROLLMENT INFORMATION WILL APPLY:

TARGETED GROUP:                             WIA Eligible Individuals

TYPE OF REFERRAL:                           Individual

TARGETED INDUSTRY:                          Information Technology

TARGETED OCCUPATION:                        Network Administration, Software
                                            Programmer, Computer Tech., Product
                                            Specialist

SELECTION CRITERIA:                         Worderlic Test, DOS Test, One-to-One
                                            Interview

ENROLLMENT SCHEDULE:                        Every two weeks (approximately)

TRAINING SITE(S):                           Torrance, CA  (19951 Mariner Ave.,
                                            Ste. 100, Torrance, CA  90503

                                            Irvine, CA  (19972 MacArthur Blvd.,
                                            Ste. 100, Irvine, CA  92615

<PAGE>

-------------------------------------------------------------------------------
                                    EXHIBIT A

                                 PROGRAM OUTLINE
-------------------------------------------------------------------------------

TITLE OF TRAINING PROGRAM:      Microsoft Certified Product Sp. (MCP) (NT)

TYPE OF TRAINING:               Classroom Training

BRIEF DESCRIPTION OF TRAINING TO BE PROVIDED: Vendor shall conduct
occupational skill training of MCP (NT) in an institutional setting for JTPA
eligible participants. Vendor will ensure that individuals acquire the
skills, knowledge, and abilities necessary to perform a training related job
as a network administrator/technician for which demand exceeds supply.

PREVAILING AVERAGE ENTRY WAGE FOR OCCUPATION:            $13.00/Hour

MAXIMUM TOTAL COST PER STUDENT:                          $5,500
<TABLE>
<S>                        <C>             <C>                                    <C>
-------------------------------------------------------------------------------------------
Cost Breakdown:                            License Fee                            $n/a
-------------------------------------------------------------------------------------------
Tuition                    $5,425             Tools                               $n/a
-------------------------------------------------------------------------------------------
Registration               $75.00             Testing Fee (Identify)  included    $included
-------------------------------------------------------------------------------------------
Books                      $included                                              $
-------------------------------------------------------------------------------------------
Supplies & Materials       $included                                              $
-------------------------------------------------------------------------------------------
Uniform(s)                 $n/a               Externships:  Yes     No /x/
-------------------------------------------------------------------------------------------
Physical Exams             $n/a               No. of hours included with course   400/Hrs
-------------------------------------------------------------------------------------------
State Exams                $n/a               No. of hours following completion   n/a
                                                   of course
-------------------------------------------------------------------------------------------
COURSE SCHEDULE (INCLUDE CLASS TOTALS):

Day Class Hours:  9:00 a.m. to 5:00 p.m.         Days of Instruction:  M-F    Total Course Hrs.  400    Total Wks.  11.4

Afternoon Class Hours:                           Days of Instruction:         Total Course Hrs.         Total Wks.

Evening Class Hours:  6:00 p.m. to 10:00 p.m.    Days of Instruction:  M-Th   Total Course Hrs.  400    Total Wks  25
</TABLE>
<PAGE>

-------------------------------------------------------------------------------
                              EXHIBIT A (CONTINUED)

                                 PROGRAM OUTLINE
-------------------------------------------------------------------------------

TRAINING-RELATED JOBS:             DICTIONARY OF OCCUPATIONAL TITLES CODE
                                   (DOT CODE):
1.       Network Administrator     031.132-010

2.       Software Programmer       031.132-010

3.       Computer Technician       032.262-010

4.       Product Specialist        031.262-010

5.       Network IT Manager:       031.132-010

THE FOLLOWING ENROLLMENT INFORMATION WILL APPLY:

TARGETED GROUP:                             WIA Eligible Individuals

TYPE OF REFERRAL:                           Individual

TARGETED INDUSTRY:                          Information Technology

TARGETED OCCUPATION:                        Network Administration, Software
                                            Programmer, Computer Tech., Product
                                            Specialist

SELECTION CRITERIA:                         Worderlic Test, DOS Test, One-to-One
                                            Interview

ENROLLMENT SCHEDULE:                        Every two weeks (approximately)

TRAINING SITE(S):                           Torrance, CA  (19951 Mariner Ave.,
                                            Ste. 100, Torrance, CA  90503

                                            Irvine, CA  (19972 MacArthur Blvd.,
                                            Ste. 100, Irvine, CA  92615
<PAGE>

-------------------------------------------------------------------------------
                                    EXHIBIT A

                                 PROGRAM OUTLINE
-------------------------------------------------------------------------------

TITLE OF TRAINING PROGRAM:       Microsoft Certified Product Sp. (WEB)

TYPE OF TRAINING:                Classroom Training

BRIEF DESCRIPTION OF TRAINING TO BE PROVIDED: Vendor shall conduct
occupational skill training of MCP/WEB in an institutional setting for JTPA
eligible participants. Vendor will ensure that individuals acquire the
skills, knowledge, and abilities necessary to perform a training related job
as a computer technician, web page designer, network for which demand exceeds
supply.

PREVAILING AVERAGE ENTRY WAGE FOR OCCUPATION:                 $15.00/Hour

MAXIMUM TOTAL COST PER STUDENT:                               $5,500
<TABLE>
<S>                             <C>                    <C>                                <C>
---------------------------------------------------------------------------------------------------
Cost Breakdown:                                        License Fee                        $n/a
---------------------------------------------------------------------------------------------------
Tuition                         $5,425                       Tools                        $.n/a
---------------------------------------------------------------------------------------------------
Registration                    $75.00                       Testing Fee (Identify)       $included
                                                             (4 voucher max)
---------------------------------------------------------------------------------------------------
Books                           $included                                                 $
---------------------------------------------------------------------------------------------------
Supplies & Materials            $included                                                 $
---------------------------------------------------------------------------------------------------
Uniform(s)                      $n/a                         Externships:  Yes     No /x/
---------------------------------------------------------------------------------------------------
Physical Exams                  $n/a                         No. of hours included with   396/Hrs
                                                             course
---------------------------------------------------------------------------------------------------
State Exams                     $n/a                         No. of hours following       n/a
                                                             completion of course
---------------------------------------------------------------------------------------------------

COURSE SCHEDULE (INCLUDE CLASS TOTALS):

Day Class Hours:  9:00 a.m. to 5:00 p.m.         Days of Instruction:  M-F    Total Course Hrs.  396    Total Wks.  11.3

Afternoon Class Hours:                           Days of Instruction:         Total Course Hrs.         Total Wks.

Evening Class Hours:  6:00 p.m. to 10:00 p.m.    Days of Instruction:  M-Th   Total Course Hrs.  396    Total Wks  25
</TABLE>
<PAGE>

-------------------------------------------------------------------------------
                               EXHIBIT A (CONTINUED)

                                 PROGRAM OUTLINE
-------------------------------------------------------------------------------

TRAINING-RELATED JOBS:             DICTIONARY OF OCCUPATIONAL TITLES CODE
                                   (DOT CODE):

1.       Web Developer               030.162-010

2.       Network Administrator       031.132-010

3.       Web Page/Research & Dev.    030.162-010

4.       Computer Technician         032.262-010

4.       Web Editor                  030.162-010

5.       Network IT Manager:         031.132-010

THE FOLLOWING ENROLLMENT INFORMATION WILL APPLY:
<TABLE>
<S>                                         <C>
TARGETED GROUP:                             WIA Eligible Individuals

TYPE OF REFERRAL:                           Individual

TARGETED INDUSTRY:                          Information Technology

TARGETED OCCUPATION:                        Network Administration, Software
                                            Programmer, Computer Tech., Product
                                            Specialist

SELECTION CRITERIA:                         Worderlic Test, DOS Test, One-to-One Interview

ENROLLMENT SCHEDULE:                        Every two weeks (approximately)

TRAINING SITE(S):                           Torrance, CA  (19951 Mariner Ave.,
                                            Ste. 100, Torrance, CA  90503

                                            Irvine, CA  (19972 MacArthur Blvd.,
                                            Ste. 100, Irvine, CA  92615
</TABLE>
<PAGE>

--------------------------------------------------------------------------------
                                    EXHIBIT B

                                  COMPETENCIES
--------------------------------------------------------------------------------

TITLE OF TRAINING:         Microsoft Certified Systems Engineer (MCSE)

VENDOR NAME:               I-Net Versity

TRAINING LENGTH:           700/Hrs. 20/Wks.  No. of Competencies:  7

PARTICIPANT IS ABLE TO:
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMPETENCY                             MEASUREMENT           MINIMUM SCORE
<S>                                    <C>                   <C>
1.   A+ Hardware Knowledge             Hands-on/Review       Instructor-approved

2.   Networking Essentials             Prometric Test        766

3.   Administering Windows NT 4.0      Prometric Test        700

4.   Core Technologies                 Prometric Test        727

5.   Enterprise Technologies           Prometric Test        560

6.   TCP/IP on Windows NT 4.0          Prometric Test        733

7.   NT Server 4.0                     Prometric Test        733

8.

9.

10.
</TABLE>
<PAGE>

--------------------------------------------------------------------------------
                                    EXHIBIT B

                                  COMPETENCIES
--------------------------------------------------------------------------------

TITLE OF TRAINING:           Microsoft Certified Systems Engineer (MCP) NT

VENDOR NAME:                 I-Net Versity

TRAINING LENGTH:             400/Hrs. 11/Wks.  No. of Competencies:  4

PARTICIPANT IS ABLE TO:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMPETENCY                            MEASUREMENT            MINIMUM SCORE
<S>                                   <C>                    <C>
1.   Know computer hardware           Hands-on               Instructor-approved

2.   Administer Windows NT 4.0        Prometric Test         700

3.   Core Technologies                Prometric Test         727

4.   Netware 5 Administration         Prometric Test         700

5.

6.

7.

8.

9.

10.
</TABLE>
<PAGE>

--------------------------------------------------------------------------------
                                    EXHIBIT B

                                  COMPETENCIES
--------------------------------------------------------------------------------

TITLE OF TRAINING:             Microsoft Certified Product Sp./WEB

VENDOR NAME:                   I-Net Versity

TRAINING LENGTH:               396/Hrs. 11/Wks.  No. of Competencies:  7

PARTICIPANT IS ABLE TO:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMPETENCY                            MEASUREMENT            MINIMUM SCORE
<S>                                   <C>                    <C>
1. Basic Operating Systems Win/Dos        Hands-on           Instructor-approved

2. Networking Fundamentals                Hands-on           Instructor-approved

3. Administering Windows NT 4.0           Prometric Test     700

4. Core Technologies                      Prometric Test     727

5. Basic Internet Fundamentals/HTML       Hands-on           Instructor-approved

6. Web site Design Fundamentals           Hands-on           Instructor-approved

7. Web Graphics                           Hands-on           Instructor-approved

8.

9.

10.
</TABLE>
<PAGE>

-------------------------------------------------------------------------------
                                    EXHIBIT C

                           VENDOR'S REQUIRED DOCUMENTS
--------------------------------------------------------------------------------

         Vendor agrees to provide South Bay Workforce Investment Area with
the following documents. Enrollments will be withheld pending receipt,
acceptance (and/or approval where indicated by asterisk) of these documents
by Administrative Entity, the Workforce Investment Board (WIB), its
Committees or WIB Counsel and/or City Legal Department when applicable.

ONE COPY OF EACH OF THE FOLLOWING AS NOTED: (south Bay Workforce Investment
Area will check N/A is not applicable.)

/X/ 1.  Current Certification(s) by Council For Private Post-Secondary and
        Vocational Education (BPPVEE): /X/ Facility /X/ Curriculum
        /X/ Instructor   In the event of any changes in facilities, curriculum,
        and/or instructor(s), or if renewals are required, Vendor shall obtain
        BPPVE certification for the changes and renewals and forward copies of
        same to City.

    2.  Check type of organization:
            Public / /   Private for Profit / /   Private Nonprofit / /
            Corporation / /   Partnership / /   Proprietorship / /
            Legal Status Documents:

/X/     Articles of Incorporation with State of California Certification

/X/     By-Laws of Corporation

/X/     Fictitious Name Statement

/X/     Business License

/X/     Non-profit status letter from IRS [i.e. 501(c)(3)] for non-profit
        agencies (if applicable).

/X/     Other:  VENDOR CERTIFICATION FORM(S)/RTVD APPLICATION

/X/ 3.  Program Orientation Packet

/X/ 4.  Grievance Procedures

/X/ 5.  Vendor Policies, including, but not limited to absentee/lateness policy,
        Holiday schedule, disciplinary procedures.

OTHER DOCUMENTS:

Administrative and fiscal information:

     1.   Completed South Bay Workforce Investment Area Authorized Signature
          form

<PAGE>
-------------------------------------------------------------------------------
                                    EXHIBIT C

                           VENDOR'S REQUIRED DOCUMENTS
--------------------------------------------------------------------------------

          listing names and signatures of those persons authorized to
          execute Agreements, contracts, modifications, fiscal statements and
          other documents for Vendor.

/X/  2.   Vendor shall complete 504 accessibility survey forms prior to written
          authorization to enroll.

/X/  3.   Debarment and Suspension Certification (for contracts over $25,000)

/X/  4.   Lobbying Certification and Disclosure (for contracts in excess of
          $100,000), if applicable.

/X/  5.   Other, specify:  (1) STATEMENT OF BUSINESS OWNERSHIP, and
          (2) NON-DISCRIMINATION CLAUSE STATEMENT

Require Insurance Certificates:

/X/  1.   General Liability Coverage with endorsements.*

/X/  2.   Automobile Liability Coverage with endorsements.*

N/A  3.   Public Entity Evidence of Self-Insurance (if applicable)*

/X/  4.   Worker Compensation Coverage
               Endorsements must name the City of HAWTHORNE, its officers,
               employees, and agents as additional insured.

<PAGE>

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

                                    EXHIBIT D

                       PROGRAM PLAN/PERFORMANCE STANDARDS
--------------------------------------------------------------------------------

Vendor Name:               I-NET VERSITY

Course Title(s) covered by this Exhibit:

         1)  Microsoft Certified Systems Engineering
         2)  Microsoft Certified Product Specialist - NT
         3)  Microsoft Certified Product Specialist - Web

I.       VENDOR RESPONSIBILITIES

         A.       Administer appropriate pre-tests where applicable.

         B.       Provide reason(s) for rejection of applicants first to
                  applicant, with a written summary of said reasons to
                  appropriate referring entity(s).

         C.       Insure that the number of participants in classroom training
                  does not exceed State requirements for training or maximum
                  room occupancy.

         D.       Provide program orientation to every participant enrolled,
                  with verification of such orientation signed by participant
                  and maintained in each participant's file. Orientation shall
                  include, but not be limited to: Student policies pertaining to
                  disciplinary procedures, grievance procedures, notice of
                  student rights, information on "how students are doing,"
                  holiday schedule and attendance requirements and procedures.
                  Vendor shall adhere to State required five (5) day
                  cancellation policy requirements.

         E.       Provide written grievance/complaint resolution and
                  nondiscrimination policies and procedures to applicants and
                  participant with explanation of process. In addition to
                  standard grievance/complaint resolution and non-discrimination
                  procedures, handicapped participants shall also receive
                  grievance/complaint resolution and non-discrimination policies
                  and procedures applicable to handicapped persons. A document
                  verifying receipt of these documents shall be signed and dated
                  and maintained in participant file.

         F.       Vendor shall maintain and make available participant daily
                  attendance records.

         G.       Vendor will provide participant with certificate of successful
                  completion and competency achievement and maintain copies of
                  completed and scored tests described in Exhibit "B" in
                  participant files.

         H.       Job Placement activities:

<PAGE>

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

                                    EXHIBIT D

                       PROGRAM PLAN/PERFORMANCE STANDARDS
--------------------------------------------------------------------------------

                  1.       Vendor shall provide placement services to WIA
                           participants that are comparable to services provided
                           to all other students of Vendor.

         I.       TERMINATION OTHER THAN PLACEMENT

                  1.       Participant Decision: If a participant chooses to
                           drop out of the program an exit interview will be
                           held, if possible, to document reason. Vendor will
                           advise City/South Bay Workforce Investment Area and
                           appropriate referring entity(s) in writing within two
                           (2) business days of learning of participant's
                           decision.

                  2.       Vendor Decision: If Vendor determines that a
                           participant can no longer benefit from the program,
                           the Vendor will:
                           (a)      First notify appropriate referring entity(s)
                           (b)      Conduct exit interview, providing
                                    information to participant in accessing
                                    other resources which may be available.

         J.       PARTICIPANT UNALLOWABLE ACTIVITIES AND COSTS:  Vendor will
                  comply with the following guidelines per WIA Directive 86-6,
                  July 2, 1986, or compensation may be disallowed:

                  1.       PUBLIC SERVICE EMPLOYMENT: No funds will be used
                           under this contract for public service employment,
                           subsidized employment with public and non-profit
                           employers providing public services.

                  2.       SECTARIAN ACTIVITIES: The employment or training of
                           participants in sectarian activities is prohibited.

                  3.       POLITICAL ACTIVITIES: No financial assistance may be
                           provided for any program which involves political
                           activities.

                  4.       MAINTENANCE OF EFFORT:
                           (a)      No currently employed worker shall be
                                    displaced by any participant (including
                                    partial displacement, such as a reduction in
                                    hours of non-overtime work, wages or
                                    employment benefits).
                           (b)      No program shall impair existing contracts
                                    for services or collective bargaining
                                    agreements, except that no program under
                                    this act which would be inconsistent with
                                    the terms of a collective bargaining
                                    agreement shall be undertaken without the
                                    written concurrence of the labor
                                    organization and employer concerned.
                           (c)      No participant shall be employed or job
                                    opening filled (1) when any other individual
                                    is on layoff from the same or any
                                    substantially equivalent job, or (2) when
                                    the employer has terminated the

<PAGE>

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

                                    EXHIBIT D

                       PROGRAM PLAN/PERFORMANCE STANDARDS
--------------------------------------------------------------------------------

                                    employment with the intention of filling the
                                    vacancy so created by hiring a participant
                                    whose wages are subsidized under this
                                    contract.
                           (d)      No jobs shall be created in a promotional
                                    line that will infringe in any way upon the
                                    promotional opportunities of currently
                                    employed individuals.

                  5.       WIA funds received by agencies or individuals may not
                           be used to assist, promote, or deter unionization.

                  6.       No funds provided under WIA may be used for
                           contributions on behalf of any participant to
                           retirement systems or plans.

                  7.       No person or organization may charge an individual a
                           fee for the placement or referral of such individual
                           in or to a training program funded under this Act.

                  8.       Davis Bacon wages shall be paid to participants
                           employed as laborers or mechanics by vendors or
                           subcontractors, when working in construction which is
                           assisted under the Act and which is related to a
                           building used for WIA programs.

                  9.       Funds provided under this Act shall only be used for
                           activities which are in addition to those which would
                           otherwise be available in the area in the absence of
                           such funds.

                  10.      No funds may be used to assist in relocating
                           establishments, or parts thereof, from one area to
                           another unless such relocation will not result in an
                           increase in unemployment in the area of original
                           location or in any other area.

                  11.      Funds provided under this Act shall not be used to
                           duplicate facilities or services available in the
                           area (with or without reimbursement) from Federal,
                           State, or local sources, unless it is demonstrated
                           that alternative services or facilities would be more
                           effective or more likely to achieve the service
                           delivery area's performance goals.

         K.       Vendors offering access to federal and/or state education
                  assistance grants shall provide City with a list of WIA
                  participants who are receiving financial aid through one or
                  more Educational Assistance Programs (including WIA
                  participants for whom ADA funds were received) and shall
                  reimburse the City for funds which were used to pay training
                  costs for participants who received financial aid after
                  training began.

<PAGE>

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

                                    EXHIBIT D

                       PROGRAM PLAN/PERFORMANCE STANDARDS
--------------------------------------------------------------------------------

II.      VENDOR PERFORMANCE

         EVALUATION STANDARDS:

         Vendors will be evaluated quarterly on all activities conducted under
         this agreement from July 1st through June 30th. Activity(s) not
         completed in the program year in which the enrollment occurred will be
         carried over and evaluated in the following program year or the program
         year in which the completion occurs. Evaluation of vendor performance
         may include, but not be limited to the following:

         1.       Training-related placement rate at termination shall be:

                  Occupation                                           Rate
                  ----------                                           ----

1)  Microsoft Certified Systems Engineering                            70%

2)  Microsoft Certified Product Specialist-NT                          70%

3)  Microsoft Certified Product Specialist-Web                         70%

         2.       FOLLOW-UP ENTERED EMPLOYMENT RATE: The follow-up entered
                  employment rate is the total number of participants employed
                  at 91 days after termination into employment (which ahs
                  occurred within 90 days from completion of training) divided
                  by the total number of participants terminated at thirteen
                  weeks (91 days).

                  The follow-up training-related entered employment rate shall
                  be no less than:  70%

         3.       TOTAL WEEKLY EARNINGS AT FOLLOW-UP: Total weekly earnings for
                  all participants employed at 91 days after termination into
                  employment (which has occurred within 90 days from completion
                  of training) divided by the total number of participants
                  employed at thirteen weeks (91 days). Training-related wage
                  rates at placement and at 91 day follow-up shall be no less
                  than:

                  Occupation                         Minimum         Average
                  ----------                         -------         -------

1)  Microsoft Certified Systems Engineering           $6.50           $7.00
2)  Microsoft Certified Product Specialist-NT         $6.50           $7.00
3)  Microsoft Certified Product Specialist-Web        $6.50           $7.00

         4.       CONTRACT COMPLIANCE CAPABILITY: Service Provider ability to
                  comply with contract requirements.

<PAGE>

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

                                    EXHIBIT D

                       PROGRAM PLAN/PERFORMANCE STANDARDS
--------------------------------------------------------------------------------

         5.       CONTRACT ADMINISTRATION: Administration of Program, including
                  but not limited to:

                  a.       Documentation
                  b.       Participant Records
                  c.       Prompt and accurate invoicing
                  d.       Cooperation

         6.       VENDOR'S FISCAL ACCOUNTABILITY: Vendor shall be monitored for
                  compliance with financial management requirements to ensure
                  that WIA assets are safeguarded against loss from unauthorized
                  use or disposition. Furthermore, vendor shall be required to
                  comply with all applicable California State Tuition Refund
                  Policies.

III.     UNDERSTANDINGS

         A.       Vendor understands that this Agreement is a tuition
                  reimbursement contract.

         B.       Vendor agrees that job placement for participants accepted
                  into training program shall be a primary responsibility of
                  Vendor, including job identification, job solicitation and job
                  development.

         C.       Vendor understands that once a participant is enrolled and
                  costs have been incurred, responsibility for participant's
                  training and placement is assumed.

         D.       Vendor understands that City, Administrative Entity, and its
                  agents are charged with tracking and reporting on compliance
                  and performance of all Agreements to the South Bay Workforce
                  Investment Area and/or designated committees. City,
                  Administrative Entity, and its agents are required to monitor
                  and provide evaluation information to appropriate persons and
                  committees. Such methods for evaluation may include surveys of
                  participants and employers.

         E.       Vendor understands that this program plan is subject to
                  modification in order to comply with required policies,
                  procedures and/or interpretation of state guidelines.

         F.       Vendor understands that on-site monitoring conducted by City,
                  Administrative Entity and/or its agents, shall include a
                  review of the financial assistance awards list to find WIA
                  enrollees and to identify possible WIA training fund
                  over-payments in order to recover funds from training
                  institution that received education assistance program funds
                  on behalf of WIA participants.

         G.       Vendor understands that all costs paid out for a participant
                  who is enrolled without written authorization from City prior
                  to enrollment shall be the sole responsibility of the Vendor.
                  In the event of any disallowed costs, the South Bay

<PAGE>

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

                                    EXHIBIT D

                       PROGRAM PLAN/PERFORMANCE STANDARDS
--------------------------------------------------------------------------------

                  Workforce Investment Area will withhold amounts owed the
                  debtor for past services or other considerations already
                  provided in satisfaction of the debt owed or use any other
                  repayment method identified in the South Bay Workforce
                  Investment Area debt collection policy.

         H.       The conduct of the parties to this agreement shall be in
                  accordance with Title VI and VII of the Civil Rights Act of
                  1964, and the rules and regulations promulgated thereunder. In
                  addition,

                  1.       During the performance of this Agreement, the Vendor,
                           Sub-grantee and its sub-contractees shall not deny
                           the Sub-grants benefits to any person on the basis of
                           religion, color, ethnic group identification, sex,
                           age, physical or mental disability, or political
                           affiliation, nor shall they discriminate unlawfully
                           against any employee or applicant for employment
                           because of race, religion, color, nationality origin,
                           marital status, age, sex or political affiliation.
                           Sub-grantee shall insure that the evaluation and
                           treatment of employees and applicants for employment
                           are free of such discrimination.

                  2.       Vendor shall include the nondiscrimination and
                           compliance provisions of this clause in all
                           subcontracts to perform work under the Sub-grant.

         I.       Vendor will administer its programs under the Workforce
                  Investment Act in full compliance with safeguards against
                  fraud, abuse and criminal activity as set forth in WIA
                  Regulations. Vendor's employees and participants shall be
                  alert to any instances of fraud, abuse, and criminal activity
                  committed by staff or program participants and report all such
                  instances to the administrative entity within 24 hours of
                  discovery in accordance with requirements and procedures
                  contained in WIA Regulations and JTPD Directive 84-19. Vendor
                  shall provide evidence of notification to employees and
                  participants of policies and reporting procedures concerning
                  fraud, abuse and criminal activity.

         J.       Vendor shall provide training in a classroom environmental
                  setting that does not depict religious artifacts, signs,
                  drawings, etc. where participant may be influenced or
                  distracted during the course of normal business operation
                  hours.

<PAGE>

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

                                    EXHIBIT E

                   STATEMENT OF BUSINESS OWNERSHIP FOR VENDOR
--------------------------------------------------------------------------------

<TABLE>

<S>                        <C>
Business Name:             I-Net Versity

Business Address:          19951 Mariner Avenue, Suite 100
                           Torrance, California  90503

Contact Person:            Noreen Khan                                 No. of employees:  63

Telephones:                (1) 310/921-1999   (2) 310/921-4138   FAX 310/370-2205

         Type of Organization:               _  Public (Govt.)     _ Local Education Agency (LEA)

                                             X  Private for-profit     _ Private not-for-profit

                                             _  Other: _____________________

         Structure:                          _  Public Agency   If so:    _ Local    _ State    _ Federal

                                             X  Corporation    _ Sole Proprietorship    _ Partnership

Federal Tax ID:            95-4706140        Project Name:  REGIONAL TRAINING VENDOR DIRECTORY (RTVD)

State ID:                  444-71951         Contract Amount:  INDEFINITE QUANTITY

-----------------------------------                  ----------------------------------------------------
SIGNATURE                                            DATE

---------------------------------------------------------------------------------------------------------
NAME and TITLE of AUTHORIZED REPRESENTATIVE

                           I-NET VERSITY
---------------------------------------------------------------------------------------------------------
ORGANIZATION

</TABLE>

<PAGE>

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

                                    EXHIBIT F

                     DEBARMENT AND SUSPENSION CERTIFICATION
--------------------------------------------------------------------------------

INSTRUCTIONS FOR CERTIFICATION

1.   By signing and submitting this proposal, the prospective recipient of
     Federal assistance funds is providing the certification as set out below.

2.   The certification in this clause is a material representation of fact upon
     which reliance was placed when this transaction was entered into. If it is
     later determined that the prospective recipient of Federal assistance funds
     knowingly rendered an erroneous certification, in addition to other
     remedies to the Federal Government, the Department of Labor (DOL) may
     pursue available remedies, including suspension and/or debarment.

3.   The prospective recipient of Federal assistance funds shall provide
     immediate written notice to the person to which this proposal is submitted
     if at any time the prospective recipient of Federal assistance funds learns
     that its certification was erroneous when submitted or has become erroneous
     by reason of changed circumstances.

4.   The terms "covered transaction," "debarred," "suspending," "ineligible,"
     "lower tier covered transaction," "participant," "person," "primary covered
     transaction," "principal," "proposal," and "voluntarily excluded," as used
     in this clause, have the meanings set out in the Definitions and Coverage
     sections of rules implementing Executive Order 12549. You may contact the
     person to which this proposal is submitted for assistance in obtaining a
     copy of those regulations.

5.   The prospective recipient of Federal assistance funds agrees by submitting
     this proposal that, should the proposed covered transaction be entered
     into, it shall not knowingly enter into any lower tier covered transaction
     with a person who is debarred, suspended, declared ineligible, or
     voluntarily excluded from participation in this covered transaction, unless
     authorized by the DOL.

6.   The prospective recipient of Federal assistance funds further agrees by
     submitting this proposal that it will include the clause titled
     "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary
     Exclusion - Lower Tier Covered Transaction," without modification, in all
     lower tier covered transactions and in all solicitations for lower tier
     covered transactions.

7.   A participant in a covered transaction may rely upon a certification of a
     prospective participant in a lower tier covered transaction that it is not
     debarred, suspended, ineligible, or voluntarily excluded from the covered
     transaction, unless it knows that the certification is erroneous. A
     participant may decide the method and frequency by which it determines the
     eligibility of its principals. Each participant may but is not required to
     check the LIST OF PARTIES EXCLUDED FROM PROCUREMENT OR NON-PROCUREMENT
     PROGRAMS.

8.   Nothing contained in the foregoing shall be construed to require
     establishment of a system of records in order to render in good faith the
     certification required by this clause. The knowledge and information of a
     participant is not required to exceed that which is normally possessed by a
     prudent person in the ordinary course of business dealings.

9.   Except for transactions authorized under paragraph 5 of these instructions,
     if a participant in a covered transaction knowingly enters into a lower
     tier covered transaction with a person who is suspended, debarred,
     ineligible, or voluntarily excluded from participation in this transaction,
     in

<PAGE>

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

                              EXHIBIT F (CONTINUED)

                 CERTIFICATION REGARDING DEBARMENT, SUSPENSION,

                      INELIGIBILITY AND VOLUNTARY EXCLUSION

                         LOWER TIER COVERED TRANSACTIONS
--------------------------------------------------------------------------------

     addition to other remedies available to the Federal Government, the DOL may
     pursue available remedies, including suspension and/or debarment.

<PAGE>

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

                              EXHIBIT F (CONTINUED)

                 CERTIFICATION REGARDING DEBARMENT, SUSPENSION,

                      INELIGIBILITY AND VOLUNTARY EXCLUSION

                         LOWER TIER COVERED TRANSACTIONS
--------------------------------------------------------------------------------

This certification is required by the regulations implementing Executive Order
12549, Debarment and Suspension, 29 CFR Part 98, Section 98.510, Participants'
responsibilities. The regulations were published as Part VII of the May 26, 1988
FEDERAL REGISTER (pages 19160-19211).

(BEFORE COMPLETING CERTIFICATION, READ INSTRUCTIONS FOR CERTIFICATION)

(1)      The prospective recipient of federal assistance funds certifies, by
         submission of this proposal, that neither it nor its principals are
         presently debarred, suspended, proposed for debarment, declared
         ineligible, or voluntarily excluded from participation in this
         transaction by any Federal department or agency.

(2)      Where the prospective recipient of Federal assistance funds is unable
         to certify to any of the statements in this certification, such
         prospective participant shall attach an explanation to this proposal.

/s/ Noreen Khan                                            April 20, 2000
--------------------------------------------------         --------------------
SIGNATURE                                                  DATE

          Noreen Khan, CEO/President
-------------------------------------------------------------------------------
NAME AND TITLE OF AUTHORIZED REPRESENTATIVE

          I-Net Versity
-------------------------------------------------------------------------------
ORGANIZATION

<PAGE>

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

                                    EXHIBIT G

                             LOBBYING CERTIFICATION

            (FOR CONTRACTS, GRANTS, LOANS AND COOPERATIVE AGREEMENTS)
--------------------------------------------------------------------------------

The undersigned certifies, to the best of his/her knowledge and belief, that:

1.   No Federal appropriated funds have been paid or will be paid, by or on
     behalf of the undersigned, to any person for influencing or attempting to
     influence an officer or employee of a Member of Congress in connection with
     the awarding of any Federal contract, the making of any Federal grant, the
     making of any Federal loan, the entering into of any cooperative agreement,
     and the extension, continuation, renewal, amendment, or modification of any
     Federal contract, grant, loan or cooperative agreement.

2.   If any funds other than Federal appropriated funds have been paid or will
     be paid to any person for influencing or attempting to influence an officer
     or employee of any agency, a Member of Congress, an officer or employee of
     Congress, or an employee of a Member of Congress in connection with this
     Federal contract, grant, loan, or cooperative agreement, the undersigned
     shall complete and submit Standard Form-LLL "Disclosure Form to Report
     Lobbying" in accordance with its instructions.

3.   The undersigned shall require that the language of this certification be
     included in the award documents for all sub-awards at all tiers (including
     subcontracts, subgrants, and contracts under grants, loans, and cooperative
     agreements) and that all subrecipients shall certify and disclose
     accordingly.

4.   This certification is a material representation of fact upon which reliance
     was placed when this transaction was made or entered into. Submission of
     this certification is a prerequisite for making or entering into this
     transaction imposed by Section 1352 Title 31, U.S. Code. Any person who
     fails to file the required certification shall be subject to a civil
     penalty of not less than $10,000 and not more than $100,000 for each such
     failure.

/s/ Noreen Khan                                            April 20, 2000
--------------------------------------------------         --------------------
SIGNATURE                                                  DATE

          Noreen Khan, CEO/President
-------------------------------------------------------------------------------
NAME AND TITLE OF AUTHORIZED REPRESENTATIVE

          I-Net Versity
-------------------------------------------------------------------------------
ORGANIZATION

<PAGE>

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

                                    EXHIBIT G

                             LOBBYING CERTIFICATION

            (FOR CONTRACTS, GRANTS, LOANS AND COOPERATIVE AGREEMENTS)
--------------------------------------------------------------------------------

During the performance of this contract, the contractor/vendor agrees as
follows:

I.       The contractor/vendor will not discriminate against any employee or
         applicant for employment because of race, religious creed, color,
         national origin, ancestry, physical handicap, medical condition,
         marital status or sex. The contractor/vendor will take affirmative
         action to assure that applicants are employed, and that employees are
         treated during their employment, without regard to their race,
         religious creed, color, national origin, ancestry, physical handicap,
         medical condition, marital status or sex. Such affirmative action shall
         be designed to insure against discrimination in the following:
         employment, upgrading, demotion or transfer, recruitment or recruitment
         advertising; layoff or termination; rates of pay or other forms of
         compensation, and selection for training, including apprenticeships or
         any other change or proposed change in employment conditions.

II.      The contractor/vendor will cause the foregoing to be inserted in all
         subcontracts for any work covered by this contract so that such
         provisions will be binding upon each subcontractor, provided that the
         foregoing provisions shall not apply to contracts or subcontracts for
         standard commercial supplies or raw materials.

/s/ Noreen Khan                                            April 20, 2000
--------------------------------------------------         --------------------
AUTHORIZED SIGNATURE                                       DATE

          Noreen Khan, CEO/President
-------------------------------------------------------------------------------
TITLE

          I-Net Versity
-------------------------------------------------------------------------------
ORGANIZATION

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