Document:

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                                                                    Exhibit 10.2

                                      LEASE

                                     BETWEEN

                         MACK PARAMUS AFFILIATES, Lessor

                                     - and -

                       LONG BEACH ACCEPTANCE CORP., LESSEE

                             Dated: March 5th, 1997

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                            TABLE OF CONTENTS

DESCRIPTION ...............................................................1

TERM ......................................................................1

BASIC RENT ................................................................1

USE AND OCCUPANCY .........................................................2

CARE AND REPAIR OF PREMISES/ENVIRONMENTAL .................................2

ALTERATIONS, ADDITIONS OR IMPROVEMENTS ....................................4

ACTIVITIES INCREASING FIRE INSURANCE ......................................4

ABANDONMENT ...............................................................4

ASSIGNMENT AND SUBLEASE ...................................................5

COMPLIANCE WITH RULES AND REGULATIONS .....................................7

DAMAGES TO BUILDING/WAIVER OF SUBROGATION .................................8

EMINENT DOMAIN ............................................................8

INSOLVENCY OF LESSEE ......................................................9

LESSOR'S REMEDIES ON DEFAULT ..............................................9

DEFICIENCY ................................................................9

SUBORDINATION OF LEASE ...................................................10

SECURITY DEPOSIT .........................................................10

RIGHT TO CURE LESSEE'S BREACH ............................................11

LIENS ....................................................................11

RIGHT TO INSPECT AND REPAIR ..............................................11

SERVICES TO BE PROVIDED BY LESSOR ........................................11

ELECTRICITY ..............................................................12

ADDITIONAL RENT ..........................................................13
(A) OPERATING COST ESCALATION ............................................13
(B) FUEL, UTILITIES AND ELECTRIC COST ESCALATION .........................13
(C) TAX ESCALATION .......................................................14
(D) LEASE YEAR ...........................................................14
(E) PAYMENT ..............................................................14
(F) BOOKS AND RECORDS ....................................................15
(G) RIGHT OF REVIEW ......................................................15
(H) OCCUPANCY ADJUSTMENT .................................................15

INTERRUPTION OF SERVICES OR USE ..........................................16

LESSEE'S ESTOPPEL ........................................................16

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HOLDOVER TENANCY .........................................................16

LESSOR'S WORK - LESSEE'S DRAWINGS ........................................17

RIGHT TO SHOW PREMISES ...................................................17

WAIVER OF JURY TRIAL/NON-MANDATORY COUNTERCLAIMS ........................ 17

LATE CHARGE ..............................................................17

NO OTHER REPRESENTATIONS .................................................17

QUIET ENJOYMENT ..........................................................17

INSURANCE ................................................................18
(A) LESSEE'S INSURANCE ...................................................18
(B) LESSOR'S INSURANCE ...................................................20
(C) WAIVER OF SUBROGATION ................................................20

RULES OF CONSTRUCTION/APPLICABLE LAW .....................................20

INDEMNITY ................................................................21

APPLICABILITY TO HEIRS AND ASSIGNS .......................................21

PARKING SPACES ...........................................................21

LESSOR'S EXCULPATION .....................................................21

BROKER ...................................................................21

PERSONAL LIABILITY .......................................................22

NO OPTION ................................................................22

DEFINITIONS ..............................................................22
(A) PROPORTIONATE SHARE ..................................................22
(B) COMMON FACILITIES ....................................................22
(C) FORCE MAJEURE ........................................................23
(D) BUILDING HOURS .......................................................23
(E) ADDITIONAL RENT ......................................................23
(F) AFFILIATED COMPANY ...................................................23

LEASE COMMENCEMENT .......................................................23

NOTICES ..................................................................24

MORTGAGEE'S NOTICE AND OPPORTUNITY TO CURE ...............................24

LEASE CONDITION ..........................................................24

ACCORD AND SATISFACTION ..................................................24

EFFECT OF WAIVERS ........................................................24

NUMBER AND GENDER ........................................................24

LESSOR'S RESERVED RIGHT ..................................................24

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CORPORATE AUTHORITY .....................................................25

GOVERNMENT REQUIREMENTS .................................................25

GUARANTY ................................................................25

RENEWAL OPTIONS .........................................................25

RIGHT OF FIRST OFFER ....................................................26

CANCELLATION OPTION .....................................................26

ADDITIONAL SPACE OPTION .................................................27

OVERTIME HVAC USE .......................................................27

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         LEASE, made the 5th day of March, 1997, between MACK PARAMUS
AFFILIATES, whose address is 370 West Passaic Street, Rochelle Park, New
Jersey 07662 (hereinafter referred to as "Lessor"); and LONG BEACH ACCEPTANCE
CORP., a corporation of the State of Delaware, whose address is 690
Kinderkamack Road, Oradell, New Jersey 07649 (hereinafter referred to as
"Lessee").

         1. DESCRIPTION. Lessor hereby leases to Lessee and Lessee hereby
hires from Lessor, the following space: Approximately 34,759 gross rentable
square feet consisting of approximately 15,504 gross rentable square feet on
the first (1st) floor (the "First Floor Space") and approximately 19,255
gross rentable square feet on the fourth (4th) floor (the "Fourth Floor
Space") (the First Floor Space and the Fourth Floor Space being hereinafter,
collectively, referred to as "Demised Premises" or "Premises") approximately
as shown on the plan or plans, initialed by the parties hereto, marked
"Exhibit A" and made a part of this Lease, which includes an allocable share
of the Common Facilities, in the building known as Mack Centre II located at
One Mack Center Drive, Paramus, New Jersey (hereinafter referred to as
"Building"), which is situated on that certain parcel of land (hereinafter
referred to as "Office Building Area"), as described on Exhibit A-1 attached
hereto and made a part of this Lease, together with the right to use in
common with other lessees of the Building, their invitees, customers and
employees, those public areas of the Common Facilities as hereinafter
defined. Notwithstanding the foregoing, from and after the commencement of
the thirteenth (13th) month following the Commencement Date, as hereinafter
defined (the "6,150 Commencement Date"), through the remainder of the Term,
as the same may be extended or renewed, Lessee shall lease from Lessor
additional space consisting of approximately 6,150 gross rentable square feet
on the fourth (4th) floor, as shown on Exhibit A attached hereto and made a
part hereof (the "6,150 Space"), which space shall not be contiguous to the
Fourth Floor Space, and from and after the 6,150 Commencement Date, Lessee's
Premises shall consist of a total of approximately 40,909 gross rentable
square feet of space, comprised of the First Floor Space, the Fourth Floor
Space, and the 6,150 Space, and all of the terms and provisions of this
Lease, to include the work to be performed by Lessor pursuant to Exhibit C,
shall be deemed applicable to the 6,150 Space, and the Term Basic Rent
payable as of the 6,150 Commencement Date shall be increased to reflect the
inclusion of the 6,150 Space, as more particularly described in Section 3.

         2. TERM. The Premises are leased for a term of seven (7) years and two
(2) months to commence on March 1, 1997 and to end at 11:59 p.m. on April 30,
2004 (hereinafter referred to as the "Term" or "Lease Term").

         3. BASIC RENT. The Lessee shall pay to the Lessor during the Term, with
respect to both the original Premises and the 6,150 Space, basic rent in the
amount of Seven Million Thirty-one Thousand Seven Hundred Twenty-four and 69/100
($7,031,724.69) Dollars (hereinafter referred to as "Term Basic Rent") payable
in such coin or currency of the United States of America as at the time of
payment shall be legal tender for the payment of public and private debts.

            (a) The Term Basic Rent with respect to the Premises only shall
accrue as follows:

<Table>
<Caption>

--------------------------------------------------------------------------
        PERIOD                ANNUAL BASIC RENT    MONTHLY BASIC RENT
--------------------------------------------------------------------------
<S>                           <C>                  <C>
Commencement Date - 12th         $712,907.09           $59,408.92
month of Term
--------------------------------------------------------------------------
13th - 24th months of Term       $730,286.59           $60,857.22
--------------------------------------------------------------------------
25th - 36th months of Term       $747,666.09           $62,305.51
--------------------------------------------------------------------------
37th - 48th months of Term       $765,045.59           $63,753.80
--------------------------------------------------------------------------
49th - 60th months of Term       $782,425.09           $65,202.09
--------------------------------------------------------------------------

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---------------------------------------------------------------------------
61st - 72nd months of Term       $791,114.84           $65,926.24
---------------------------------------------------------------------------
73rd - 86th months of Term       $799,804.59           $66,650.38
---------------------------------------------------------------------------

</Table>

            (b) The Term Basic Rent with respect to the 6,150 Space only
shall accrue as follows:

<Table>
<Caption>

-------------------------------------------------------------------------------
        PERIOD              ANNUAL BASIC RENT   MONTHLY BASIC RENT
-------------------------------------------------------------------------------
<S>                         <C>                 <C>
6,150 Space
Commencement Date - 12th
month following 6,150
Space Commencement Date        $124,230.00          $10,352.50
-------------------------------------------------------------------------------
13th - 24th months
following 6,150 Space
Commencement Date              $127,305.00          $10,608.75
-------------------------------------------------------------------------------
25th - 36th months
following 6,150 Space
Commencement Date              $130,380.00          $10,865.00
-------------------------------------------------------------------------------
37th - 48th months
following 6,150 Space
Commencement Date              $133,455.00          $11,121.25
-------------------------------------------------------------------------------
49th - 60th months
following 6,150 Space
Commencement Date              $136,530.00          $11,377.50
-------------------------------------------------------------------------------
61st - 72nd months
following 6,150 Space
Commencement Date              $138,067.50          $11,505.63
-------------------------------------------------------------------------------
73rd month following 6,150
Space Commencement Date
- expiration of Term           $139,605.00          $11,633.75
-------------------------------------------------------------------------------

</Table>

The aforesaid installments of Monthly Basic Rent shall be payable in advance
on the first day of each calendar month during the Term, except that a
proportionately lesser sum may be paid for the first and last months of the
Term of this Lease if the Lease Term commences on a date other than the first
day of the month, in accordance with the provisions of this Lease herein set
forth. Lessor acknowledges receipt from Lessee of the sum of Fifty-nine
Thousand Four Hundred Eight and 92/100 ($59,408.92) Dollars by check, subject
to collection, for Monthly Basic Rent for the first month of the Lease Term.
Lessee shall pay Basic Rent, and any Additional Rent as hereinafter provided,
to Mack Management Corp., as agent for Lessor, at Lessor's above stated
address, or to such other agent as Lessor may designate in writing, without
demand and without counterclaim, deduction or setoff. As used in this Lease,
Basic Rent shall mean either Term Basic Rent, Annual Basic Rent or Monthly
Basic Rent as appropriate.

         4. USE AND OCCUPANCY. Lessee shall use and occupy the Premises as
general offices and for no other purpose.

         5. CARE AND REPAIR OF PREMISES/ENVIRONMENTAL. Lessee covenants to
commit no act of waste and to take good care of the Premises and the fixtures
and appurtenances therein, and shall, in the use and occupancy of the
Premises, comply with all present and future laws, orders and regulations of
the federal, state and municipal governments or any of their departments
affecting the Premises and with any and all environmental requirements
resulting from the Lessee's use of the Premises; this covenant to

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survive the expiration or sooner termination of the Lease. Lessor shall, at
Lessee's expense, make all necessary repairs to the Premises. Lessor shall
make all necessary repairs to the Common Facilities and to the parking areas,
if any, the same to be included as an Operating Cost, except where the repair
has been made necessary by misuse by Lessee or Lessee's agents, servants,
visitors or licensees, in which event Lessor shall nevertheless make the
repair but Lessee shall pay to Lessor, as Additional Rent, within thirty (30)
days of demand, the costs therefor. All improvements made by Lessee to the
Premises, which are so attached to the Premises that they cannot be removed
without material injury to the Premises, shall become the property of Lessor
upon installation. Not later than the last day of the Term, Lessee shall, at
Lessee's expense, remove all Lessee's personal property and those
improvements made by Lessee which have not become the property of Lessor,
including trade fixtures, cabinetwork, movable paneling, partitions and the
like; repair all injury done by or in connection with the installation or
removal of said property and improvements; and surrender the Premises in as
good condition as they were at the beginning of the Term, reasonable wear and
damage by fire, the elements, casualty, or other cause not due to the misuse
or neglect by Lessee, Lessee's agents, servants, visitors or licensees
excepted. All other property of Lessee remaining on the Premises after the
last day of the Term of this Lease shall be conclusively deemed abandoned and
may be removed by Lessor, and Lessee shall reimburse Lessor for the cost of
such removal. Lessor may have any such property stored at Lessee's risk and
expense.

                  Notwithstanding anything contained herein to the contrary,
Lessor represents and warrants to Lessee that Lessor has received no notice
of a violation of any law, order or regulation of any federal, State or
municipal government or of any environmental requirement with respect to the
Premises, the 6,150 Space, the Building or the Office Building Area.

                  Lessee acknowledges the existence of environmental laws,
rules and regulations, including but not limited to the provisions of ISRA,
as hereinafter defined. Lessee shall comply with any and all such laws, rules
and regulations. Lessee represents to Lessor that Lessee's Standard
Industrial Classification (SIC) Number as designated in the Standard
Industrial Classification Manual prepared by the Office of Management and
Budget in the Executive Office of the President of the United States will not
subject the Premises to ISRA applicability. Any change by Lessee to an
operation with a SIC Number subject to ISRA shall require Lessor's written
consent. Any such proposed change shall be sent in writing to Lessor sixty
(60) days prior to the proposed change. Lessor, at its sole option, may deny
consent.

                  Lessee hereby agrees to execute such documents as Lessor
reasonably deems necessary and to make such applications as Lessor reasonably
requires to assure compliance with ISRA. Lessee shall bear all costs and
expenses incurred by Lessor associated with any required ISRA compliance
resulting from Lessee's use of the Demised Premises including but not limited
to state agency fees, engineering fees, clean-up costs, filing fees and
suretyship expenses. As used in this Lease, ISRA compliance shall include
applications for determinations of nonapplicability by the appropriate
governmental authority. The foregoing undertaking shall survive the termination
or sooner expiration of the Lease and surrender of the Demised Premises and
shall also survive sale, or lease or assignment of the Demised Premises by
Lessor. Lessee agrees to indemnify and hold Lessor harmless from any violation
of ISRA occasioned by Lessee's use of the Demised Premises. The Lessee shall
immediately provide the Lessor with copies of all correspondence, reports,
notices, orders, findings, declarations and other materials pertinent to the
Lessee's compliance and the requirements of the New Jersey Department of
Environmental Protection ("NJDEP") under ISRA as they are issued or received by
the Lessee.

                  Lessee agrees not to generate, store, manufacture, refine,
transport, treat, dispose of, or otherwise permit to be present on or about the
Premises, any Hazardous Substances. As used herein, Hazardous Substances shall
be defined as any "hazardous chemical," "hazardous substance" or similar term
as defined in the Comprehensive Environmental Responsibility Compensation and
Liability Act, as amended (42 U.S.C. 9601,

                                       3

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ET SEQ.), the New Jersey Environmental Cleanup Responsibility Act, as amended,
N.J.S.A. 13:1K-6 ET SEQ. and/or the Industrial Site Recovery Act ("ISRA"), the
New Jersey Spill Compensation and Control Act, as amended, N.J.S.A.
58:10-23.11b, ET SEQ., any rules or regulations promulgated thereunder, or in
any other applicable federal, state or local law, rule or regulation dealing
with environmental protection. It is understood and agreed that the provisions
contained in this Section shall be applicable notwithstanding the fact that any
substance shall not be deemed to be a Hazardous Substance at the time of its use
by the Lessee but shall thereafter be deemed to be a Hazardous Substance.
Notwithstanding anything contained herein to the contrary, Lessee shall be
permitted to keep small quantities of normal office supplies which may be
included as Hazardous Substances such as cleaning supplies and copier supplies,
provided the same are properly stored, handled and disposed of in full
compliance with all environmental laws.

                  In the event Lessee fails to comply with ISRA as stated in
this Section or any other governmental law as of the termination or sooner
expiration of the Lease and as a consequence thereof Lessor is unable to rent
the Demised Premises, then the Lessor shall treat the Lessee as one who has not
removed at the end of its Term, and thereupon be entitled to all remedies
against the Lessee provided by law in that situation including a monthly rental
of one hundred fifty (150%) percent of the Monthly Basic Rent for the last month
of the Term of this Lease or any renewal term, payable in advance on the first
day of each month, until such time as Lessee provides Lessor with a negative
declaration or confirmation that any required clean-up plan has been
successfully completed.

                  Lessee agrees to indemnify and hold harmless the Lessor and
each mortgagee of the Premises from and against any and all liabilities,
damages, claims, losses, judgments, causes of action, costs and expenses
(including the reasonable fees and expenses of counsel) which may be incurred by
the Lessor or any such mortgagee relating to or arising out of any breach by
Lessee of the undertakings set forth in this Section, said indemnity to survive
the Lease expiration or sooner termination.

                  Notwithstanding anything contained herein to the contrary,
Lessee shall have no responsibility for any cost or expense for any Hazardous
Substance or environmental condition caused or created by Lessor or determined
to have been in existence at the Demised Premises prior to the Commencement Date
of this Lease to the extent Lessee has not exacerbated any such pre-existing
condition. Lessee agrees to notify Lessor immediately upon the discovery of any
such pre-existing Hazardous Substance or environmental condition.

         6. ALTERATIONS, ADDITIONS OR IMPROVEMENTS. Lessee shall not, without
first obtaining the written consent of Lessor, make any alterations, additions
or improvements in, to or about the Premises. Notwithstanding anything contained
herein to the contrary, Lessor's consent shall not be required with respect to
alterations, additions or improvements, the aggregate cost of which does not
exceed Ten Thousand and 00/100 ($10,000.00) Dollars in any one (1) Lease Year
provided same do not affect any structural portions of the Building or any HVAC,
electrical, plumbing or other Building systems. In any event, Lessee shall
notify Lessor of any such proposed alteration, addition or improvement and, if
requested by Lessor, Lessee shall provide Lessor with plans and specifications
of any such alterations, additions or improvements.

         7. ACTIVITIES INCREASING FIRE INSURANCE. Lessee shall not do or suffer
anything to be done on the Premises which will increase the rate of fire
insurance on the Building.

         8. ABANDONMENT. Lessee shall not, without first obtaining the written
consent of Lessor, abandon the Premises, or allow the Premises to become vacant
or deserted. Notwithstanding the foregoing, no event of default shall be deemed
to have occurred by virtue of Lessee's abandonment of the Demised Premises
provided Lessee continues to fulfill all of its obligations under this Lease
including by way of example but not limitation, the payment of all Term Basic
Rent and Additional Rent and the maintenance of all insurance required under
Section 33. If the costs of any insurance are increased resulting

                                       4
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from Lessee's abandonment of the Demised Premises, Lessee shall pay such
increased insurance costs.

         9. ASSIGNMENT AND SUBLEASE. Lessee may not mortgage, pledge,
hypothecate, assign, transfer, sublet or otherwise deal with this Lease or the
Premises in any manner except as specifically provided for in this Section 9:

                  (A) In the event that Lessee desires to sublease the whole or
         any portion of the Premises or assign the within Lease to any other
         party, the terms and conditions of such sublease or assignment shall be
         communicated to Lessor in writing not less than thirty (30) days prior
         to the effective date of any such sublease or assignment, and, prior to
         such effective date, Lessor shall have the option, exercisable in
         writing to Lessee within ten (10) business days of Lessor's receipt of
         such written communication, to recapture the within Lease so that
         such prospective sublessee or assignee shall then become the sole
         lessee of Lessor hereunder or alternatively to recapture said space and
         the within Lessee shall be fully released from any and all obligations
         hereunder.

                  (B) In the event that Lessor elects not to recapture the Lease
         as hereinabove provided, Lessee may nevertheless assign this Lease or
         sublet the whole or any portion of the Premises, subject to Lessor's
         prior written consent, which consent shall not be unreasonably
         withheld, delayed or denied and subject to the consent of any
         mortgagee, trust deed holder or ground lessor, on the basis of the
         following terms and conditions:

                           (1) The Lessee shall provide to Lessor the name and
                  address of the assignee or sublessee.

                           (2) The assignee or sublessee shall assume, by
                  written instrument, all of the obligations of this Lease, and
                  a copy of such assumption agreement shall be furnished to
                  Lessor within ten (10) days of its execution. Any sublease
                  shall expressly acknowledge that said sublessee's rights
                  against the Lessor shall be no greater than those of the
                  Lessee.

                           (3) The Lessee and each assignee shall be and remain
                  liable for the observance of all the covenants and provisions
                  of this Lease, including, but not limited to, the payment of
                  Term Basic Rent reserved herein as and when required to be
                  paid, through the entire Term of this Lease, as the same may
                  be renewed, extended or otherwise modified.

                           (4) The Lessee and any assignee shall promptly pay to
                  Lessor one-half (1/2) of any net consideration received for
                  any assignment or one-half (1/2) of the net rent (Basic and
                  Additional), as and when received in excess of the Term Basic
                  Rent and Additional Rent required to be paid by Lessee for the
                  period affected by said assignment or sublease for the area
                  sublet, computed on the basis of an average square foot rent
                  for the gross square footage Lessee has leased. As used
                  herein, net consideration and/or net rent shall mean gross
                  rent (basic and additional rent) or gross consideration less
                  any reasonable brokerage or tenant work paid by Lessee in
                  connection with the assignment or sublet, said brokerage or
                  tenant work to be amortized over the term of the assignment or
                  sublet.

                           (5) In any event, the acceptance by Lessor of any
                  rent (Basic and Additional) from the assignee or from any of
                  the subtenants or the failure of Lessor to insist upon a
                  strict

                                       5
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                  performance of any of the terms, conditions and covenants
                  herein shall not release Lessee herein, nor any assignee
                  assuming this Lease, from any and all of the obligations
                  herein during and for the entire Term of this Lease.

                           (6) Lessee shall reimburse Lessor for Lessor's actual
                  costs in connection with the handling charges for each request
                  for consent to any sublet or assignment prior to its
                  consideration of the same; however, in no event shall such
                  payment exceed Five Hundred and 00/100 ($500.00) Dollars in
                  any one instance.

                           (7) Lessee shall have no claim, and hereby waives the
                  right to any claim, against Lessor for money damages by reason
                  of any refusal, withholding or delaying by Lessor of any
                  consent, and in such event, Lessee's only remedies therefor
                  shall be an action for specific performance, injunction or
                  declaratory judgment to enforce any such requirement. Lessor
                  acknowledges that Lessee may commence such action by means of
                  an Order to Show Cause before the Superior Court of New
                  Jersey, in which event Lessor acknowledges Lessee's rights to
                  an expedited proceeding and to notify Lessor of the
                  institution of the Order to Show Cause by telephonic means.
                  Lessor and Lessee further agree that the determination of such
                  Court shall be conclusive and nonappealable.

                  (C) Any sublet or assignment to an Affiliated Company shall
         not be subject to the provisions of Subsections 9(A), 9(B)(4) or
         9(B)(6) hereof and shall not require Lessor's prior written consent,
         but all other provisions of this Section shall apply.

                  (D) In the event that any or all of Lessee's interest in the
         Premises and/or this Lease is transferred by operation of law to any
         trustee, receiver, or other representative or agent of Lessee, or to
         Lessee as a debtor in possession, and subsequently any or all of
         Lessee's interest in the Premises and/or this Lease is offered or to be
         offered by Lessee or any trustee, receiver, or other representative or
         agent of Lessee as to its estate or property (such person, firm or
         entity being hereinafter referred to as the "Grantor"), for assignment,
         conveyance, lease, or other disposition to a person, firm or entity
         other than Lessor (each such transaction being hereinafter referred to
         as a "Disposition"), it is agreed that Lessor has and shall have a
         right of first refusal to purchase, take, or otherwise acquire, the
         same upon the same terms and conditions as the Grantor thereof shall
         accept upon such Disposition to such other person, firm, or entity; and
         as to each such Disposition the Grantor shall give written notice to
         Lessor in reasonable detail of all of the terms and conditions of such
         Disposition within twenty (20) days next following its determination to
         accept the same but prior to accepting the same, and Grantor shall not
         make the Disposition until and unless Lessor has failed or refused to
         accept such right of first refusal as to the Disposition, as set forth
         herein.

                  Lessor shall have sixty (60) days next following its receipt
         of the written notice as to such Disposition in which to exercise the
         option to acquire Lessee's interest by such Disposition, and the
         exercise of the option by Lessor shall be effected by notice to that
         effect sent to the Grantor; but nothing herein shall require Lessor to
         accept a particular Disposition or any Disposition, nor does the
         rejection of any one such offer of first refusal constitute a waiver or
         release of the obligation of the Grantor to submit other offers
         hereunder to Lessor. In the event Lessor accepts such offer of first
         refusal, the transaction shall be consummated pursuant to the terms and
         conditions of the Disposition described in the notice to Lessor. In the
         event

                                       6
<Page>

         Lessor rejects such offer of first refusal, Grantor may consummate the
         Disposition with such other person, firm, or entity; but any decrease
         in price of more than two (2%) percent of the price sought from Lessor
         or any change in the terms of payment for such Disposition shall
         constitute a new transaction requiring a further option of first
         refusal to be given to Lessor hereunder.

                  (E) Without limiting any of the provisions of Sections 13 and
         14, if pursuant to the Federal Bankruptcy Code (herein the "Code") or
         any similar law hereafter enacted having the same general purpose,
         Lessee is permitted to assign this Lease notwithstanding the
         restrictions contained in this Lease, adequate assurance of future
         performance by an assignee expressly permitted under such Code shall be
         deemed to mean the deposit of cash security in an amount equal to one
         (1) year's Annual Basic Rent and Additional Rent for the next
         succeeding twelve (12) months (which Additional Rent shall be
         reasonably estimated by Lessor), which deposit shall be held by Lessor
         for the balance of the Term, without interest, as security for the full
         performance of all of Lessee's obligations under this Lease, to be held
         and applied in the manner specified for security in Section 17.

                  (F) Except as specifically set forth above, no portion of the
         Demised Premises or of Lessee's interest in this Lease may be acquired
         by any other person or entity, whether by assignment, mortgage,
         sublease, transfer, operation of law or act of the Lessee, nor shall
         Lessee pledge its interest in this Lease or in any security deposit
         required hereunder.

                  (G) If Lessee is a corporation other than a corporation whose
         stock is listed and traded on a nationally recognized stock exchange,
         the provisions of this Section 9 shall apply to a transfer (however
         accomplished, whether in a single transaction or in a series of related
         or unrelated transactions) of stock [or any other mechanism such as, by
         way of example, the issuance of additional stock, a stock voting
         agreement or change in class(es) of stock] which results in a change of
         control of Lessee as if such transfer of stock (or other mechanism)
         which results in a change of control of Lessee were an assignment of
         this Lease, and if Lessee is a partnership or joint venture, said
         provisions shall apply with respect to a transfer (by one or more
         transfers) of an interest in the distributions of profits and losses of
         such partnership or joint venture (or other mechanism, such as, by way
         of example, the creation of additional general partnership or limited
         partnership interests) which results in a change of control of such a
         partnership or joint venture as if such transfer of an interest in the
         distributions of profits and losses of such partnership or joint
         venture which results in a change of control of such partnership or
         joint venture were an assignment of this Lease; but said provisions
         shall not apply to transactions with a corporation into or with which
         Lessee is merged or consolidated or to which all or substantially all
         of Lessee's assets are transferred or to any corporation which controls
         or is controlled by Lessee or is under common control with Lessee,
         provided that in the event of such merger, consolidation or transfer of
         all or substantially all of Lessee's assets, (i) the successor to
         Lessee has a net worth computed in accordance with generally accepted
         accounting principles at least equal to the greater of (a) the net
         worth of Lessee immediately prior to such merger, consolidation or
         transfer or (b) the net worth of Lessee herein named on the date of
         this Lease, and (ii) proof satisfactory to Lessor of such net worth
         shall have been delivered to Lessor at least ten (10) days prior to the
         effective date of any such transaction.

         10. COMPLIANCE WITH RULES AND REGULATIONS. Lessee shall observe and
comply with the rules and regulations hereinafter set forth in Exhibit B
attached hereto and made a part hereof and with such further reasonable rules
and regulations as Lessor may prescribe, on written notice to Lessee, for the
safety, care and cleanliness of the

                                       7
<Page>

Building and the comfort, quiet and convenience of other occupants of the
Building. Lessee shall not place a load upon any floor of the Demised
Premises exceeding the floor load per square foot area which it was designed
to carry and which is allowed by law. Lessor reserves the right to reasonably
prescribe the weight and position of all safes, machines and equipment. Such
installations shall be placed and maintained by Lessee, at Lessee's expense,
in settings sufficient, in Lessor's judgment, to absorb and prevent
vibration, noise and annoyance.

         11. DAMAGES TO BUILDING/WAIVER OF SUBROGATION. If the Building is
damaged by fire or any other cause to such extent that the cost of
restoration as reasonably estimated by Lessor, will equal or exceed
twenty-five (25%) percent of the replacement value of the Building (exclusive
of foundations) just prior to the occurrence of the damage, then Lessor may,
no later than the sixtieth (60th) day following the damage, give Lessee a
notice of election to terminate this Lease; or if the cost of restoration
will equal or exceed fifty (50%) percent of such replacement value and if the
Premises shall not be reasonably usable for the purpose for which they are
leased hereunder, then Lessee may, no later than the sixtieth (60th) day
following the damage, give Lessor a notice of election to terminate this
Lease. In either said event of election, this Lease shall be deemed to
terminate on the thirtieth (30th) day after the giving of said notice, and
Lessee shall surrender possession of the Premises within a reasonable time
thereafter, and the Term Basic Rent and any Additional Rent, shall be
apportioned as of the date of said surrender and any Term Basic Rent or any
Additional Rent paid for any period beyond the later of the thirtieth (30th)
day after said notice or the date Lessee surrenders possession shall be
repaid to Lessee. If the cost of restoration shall not entitle Lessor to
terminate this Lease, or if despite the cost, Lessor does not elect to
terminate this Lease, Lessor shall restore the Building and the Premises with
reasonable promptness, subject to Force Majeure, as hereinafter defined, and
except as stated above, Lessee shall have no right to terminate this Lease.
Lessor need not restore fixtures and improvements owned by Lessee.

                  In any case in which use of the Premises is affected by any
damage to the Building, there shall be either an abatement or an equitable
reduction in Term Basic Rent and an equitable reduction in the Base Period
Costs as established in Section 23 depending on the period for which and the
extent to which the Premises are not reasonably usable for the purpose for
which they are leased hereunder. The words "restoration" and "restore" as
used in this Section 11 shall include repairs. If the damage results from the
fault of the Lessee, or Lessee's agents, servants, visitors or licensees,
Lessee shall not be entitled to any abatement or reduction in Term Basic
Rent, except to the extent of any rent insurance received by Lessor.

                  Except as provided in Section 5 hereof with respect to
environmental matters only, notwithstanding the provisions of this Section or
any other provision of this Lease, in the event of any loss or damage to the
Building, the Premises and/or any contents (herein "property damage"), each
party waives all claims against the other and its or their agents, servants,
employees and partners for any such loss or damage and each party shall look
only to any insurance which it has obtained to protect against such loss (or
in the case of Lessee, waives all claims against any tenant of the Building
that has similarly waived claims against such Lessee), and each party shall
obtain, for each policy of such insurance, provisions waiving any claim
against the other party [and against any other tenant(s) in the Building that
has waived subrogation against the Lessee] for loss or damage within the scope
of such insurance.

         12. EMINENT DOMAIN. If Lessee's use of the Premises is materially
affected due to the taking by eminent domain of (a) the Premises or any part
thereof or any estate therein; or (b) any other part of the Building; then,
in either event, this Lease shall terminate on the date when title vests
pursuant to such taking. The Term Basic Rent, and any Additional Rent, shall
be apportioned as of said termination date and any Term Basic Rent or
Additional Rent paid for any period beyond said date shall be repaid to
Lessee. In the event of a partial taking which does not effect a termination
of this Lease but does deprive Lessee of the use of a portion of the demised
premises, there shall either be an abatement or an

                                       8
<Page>

equitable reduction of the Term Basic Rent, and an equitable adjustment
reducing the Base Period Costs as hereinafter defined depending on the period
for which and the extent to which the Premises so taken are not reasonably
usable for the purpose for which they are leased hereunder. Lessee shall not
be entitled to any part of the award for such taking or any payment in lieu
thereof, but Lessee may file a separate claim for any taking of fixtures and
improvements owned by Lessee which have not become Lessor's property, and for
moving expenses, provided the same shall in no way affect or diminish
Lessor's award.

         13. INSOLVENCY OF LESSEE. Either (a) the appointment of a receiver
to take possession of all or substantially all of the assets of Lessee, or
(b) a general assignment by Lessee for the benefit of creditors, or (c) any
action taken or suffered by Lessee under any insolvency or bankruptcy act,
shall constitute a default of this Lease by Lessee, and Lessor may terminate
this Lease forthwith and upon notice of such termination Lessee's right to
possession of the Demised Premises shall cease, and Lessee shall then quit
and surrender the Premises to Lessor but Lessee shall remain liable as
hereinafter provided in Section 15 hereof.

         14. LESSOR'S REMEDIES ON DEFAULT. If Lessee defaults in the payment
of Term Basic Rent, or any Additional Rent, or defaults in the performance of
any of the other covenants and conditions hereof, Lessor may give Lessee
notice of such default, and if Lessee does not cure any Term Basic Rent or
Additional Rent default within five (5) days of the giving of such notice or
other default within thirty (30) days after giving of such notice
[or if such other default is of such nature that it cannot be completely cured
within such period, if Lessee does not commence such curing within such thirty
(30) days and thereafter proceed with reasonable diligence and in good faith
to cure such default], then Lessor may terminate this Lease on not less than
ten (10) days' notice to Lessee, and on the date specified in said notice,
Lessee's right to possession of the Demised Premises shall cease, and Lessee
shall then quit and surrender the Premises to Lessor, but Lessee shall remain
liable as hereinafter provided. If this Lease shall have been so terminated by
Lessor pursuant to Sections 13 or 14 hereof, Lessor may at any time thereafter
resume possession of the Premises by any lawful means and remove Lessee or
other occupants and their effects.

         15. DEFICIENCY. In any case where Lessor has recovered possession of
the Premises by reason of Lessee's default, Lessor may, at Lessor's option,
occupy the Premises or cause the Premises to be redecorated, altered,
divided, consolidated with other adjoining premises, or otherwise changed or
prepared for reletting, and may relet the Premises or any part thereof as
agent of Lessee or otherwise, for a term or terms to expire prior to, at the
same time as, or subsequent to, the original expiration date of this Lease,
at Lessor's option, and receive Term Basic Rent and Additional Rent therefor.
Term Basic Rent and Additional Rent so received shall be applied first to the
payment of such expenses as Lessor may have incurred in connection with the
recovery of possession, redecorating, altering, dividing, consolidating with
other adjoining premises, or otherwise changing or preparing for reletting,
and the reletting, including brokerage and reasonable attorney's fees, and
then to the payment of damages in amounts equal to the Term Basic Rent and
Additional Rent hereunder and to the costs and expenses of performance of the
other covenants of Lessee as herein provided. Lessee agrees, in any such
case, whether or not Lessor has relet, to pay to Lessor damages equal to the
Term Basic Rent and Additional Rent and other sums herein agreed to be paid
by Lessee, as and when due, less the net proceeds of the reletting, if any,
as ascertained from time to time, as of the due date, and the same shall be
payable by Lessee on the several rent days above specified. Lessee shall not
be entitled to any surplus accruing as a result of any such reletting, nor
shall any surplus be applied to offset the damages referred to in the
preceding sentence. In reletting the Premises as aforesaid, Lessor may grant
rent concessions, and Lessee shall not be credited therewith. No such
reletting shall constitute a surrender and acceptance or be deemed evidence
thereof. If Lessor elects, pursuant hereto, actually to occupy and use the
Premises or any part thereof during any part of the balance of the Term as
originally fixed or since extended, there shall be allowed against Lessee's
obligation for Term Basic Rent and Additional Rent or damages as herein
defined, during the period of Lessor's occupancy, the reasonable value of
such occupancy, not to exceed in any

                                      9

<Page>

event the Term Basic Rent and Additional Rent herein reserved and such
occupancy shall not be construed as a release of Lessee's liability hereunder.

                  Alternatively, in any case where Lessor has recovered
possession of the Premises by reason of Lessee's default, Lessor may at
Lessor's option, and at any time thereafter, and without notice or other
action by Lessor, and without prejudice to any other rights or remedies it
might have hereunder or at law, or equity, become entitled to recover from
Lessee, as damages for such breach, in addition to such other sums herein
agreed to be paid by Lessee, to the date of reentry, expiration and/or
dispossess, an amount equal to the difference between the Term Basic Rent and
Additional Rent reserved in this Lease from the date of such default to the
date of expiration of the Term demised and the then fair and reasonable
rental value of the Premises for the same period. Said damages shall become
due and payable to Lessor immediately upon such breach of this Lease and
without regard to whether this Lease be terminated or not, and if this Lease
be terminated, without regard to the manner in which it is terminated. In
the computation of such damages, the difference between any installments of
Term Basic Rent and Additional Rent thereafter becoming due and the fair and
reasonable rental value of the Premises for the period for which such
installment was payable shall be discounted to the date of such default at
the rate of not more than six (6%) percent per annum.

                  Lessee hereby waives all right of redemption to which
Lessee or any person under Lessee might be entitled by any law now or
hereafter in force. In addition, in the event of a default which results in
the Lessor recovering possession of the Premises, Lessor will use reasonable
efforts to relet the Premises in order to mitigate its damages provided that
Lessor shall retain the right, in the exercise of its reasonable business
judgment, to approve any tenant and determine the reasonable terms and
conditions of any lease, including, but not limited to, rent and length of
term. Notwithstanding the foregoing, Lessor shall not be obligated to display
the Premises to prospective tenants if Lessor has other premises available in
the Building or in the building owned by Lessor's affiliate known as Mack
Centre III located at 140 Ridgewood Avenue, Paramus, New Jersey. However, if
prospective tenants do not find such other premises suitable, Lessor agrees
that it will then display the Premises to the prospective tenants.

                  Lessor's remedies hereunder are in addition to any remedy
allowed by law.

                  Lessee agrees to pay, as Additional Rent, all attorney's
fees and other expenses incurred by the Lessor in enforcing any of the
obligations under this Lease, this covenant to survive the expiration or
sooner termination of this Lease.

         16. SUBORDINATION OF LEASE. This Lease and any option contained
herein shall, at Lessor's option, or at the option of any holder of any
underlying lease or holder of any first mortgage or first deed of trust, be
subject and subordinate to any such underlying leases and to any such first
mortgage and/or first trust deed which may now or hereafter affect the real
property of which the Premises form a part, and also to all renewals,
modifications, consolidations and replacements of said underlying leases and
said first mortgage or first trust deed. Although no instrument or act on the
part of Lessee shall be necessary to effectuate such subordination, Lessee
will, nevertheless, execute and deliver such further instruments confirming
such subordination of this Lease as may be desired by the holders of said
first mortgage and first trust deeds or by any of the lessors under such
underlying leases. If any underlying lease to which this Lease is subject
terminates, Lessee shall, on timely request, attorn to the owner of the
reversion. Lessor agrees to obtain, on behalf of Lessee, a nondisturbance
agreement from any future first mortgagee or future holder of a first trust
deed, and in connection therewith, Lessee agrees to attorn to said future
first mortgagee or future holder of a first trust deed. Any charges assessed
by the holders of said mortgage or trust deed in connection with the
obtaining of the aforesaid nondisturbance agreement shall be paid by Lessor.

         17. SECURITY DEPOSIT. In the event any security is required to be
deposited pursuant to the terms of this Lease and in the event Lessor uses
any of said security deposit

                                       10
<Page>

to cure Lessee's default(s) or meet any of Lessee's obligations, Lessee
covenants to upon demand replace the amount so utilized. In the event of a
bona fide sale, subject to this Lease, Lessor shall have the right to
transfer the security to the vendee, and Lessor shall be considered released
by Lessee from all liability for the return of such security; and Lessee
agrees to look solely to the new lessor for the return of the said security,
and it is agreed that this shall apply to every transfer or assignment made
of the security to a new lessor. The security deposited as provided for
herein shall not be mortgaged, assigned or encumbered by Lessee without the
written consent of Lessor.

                  In the event of the insolvency of Lessee, or in the event
of the entry of a judgment in bankruptcy in any court against Lessee which is
not discharged within thirty (30) days after entry, or in the event a
petition is filed by or against Lessee under any chapter of the bankruptcy
laws of the State of New Jersey or the United States of America, then in such
event, Lessor may require the Lessee to deposit security in the amount
specified in Section 9(E) to adequately assure Lessee's performance of all of
its obligations under this Lease including all payments subsequently
accruing. Failure of Lessee to deposit the security required by this Section
within ten (10) days after Lessor's written demand shall constitute a
material breach of this Lease by Lessee.

         18. RIGHT TO CURE LESSEE'S BREACH. If Lessee breaches any covenant
or condition of this Lease, Lessor may, on reasonable notice to Lessee
(except that no notice need be given in case of emergency), cure such breach
at the expense of Lessee and the reasonable amount of all expenses, including
attorney's fees, incurred by Lessor in so doing (whether paid by Lessor or
not) shall be deemed Additional Rent payable on demand.

         19. LIENS. Lessee shall not do any act, or make any contract, which
may create or be the foundation for any lien or other encumbrance upon any
interest of Lessor or any ground or underlying lessor in any portion of the
Premises. If, because of any act or omission (or alleged act or omission) of
Lessee, any Construction Lien Claim or other lien (collectively "Lien"),
charge, or order for the payment of money or other encumbrance shall be filed
against Lessor and/or any ground or underlying lessor and/or any portion of
the Premises (whether or not such Lien, charge, order, or encumbrance is
valid or enforceable as such), Lessee shall, at its own cost and expense,
cause same to be discharged of record or bonded within fifteen (15) days
after the filing thereof; and Lessee shall indemnify and save harmless Lessor
and all ground and underlying lessor(s) against and from all costs,
liabilities, suits, penalties, claims, and demands, including reasonable
counsel fees, resulting therefrom. If Lessee fails to comply with the
foregoing provisions, Lessor shall have the option of discharging or bonding
any such Lien, charge, order, or encumbrance, and Lessee agrees to reimburse
Lessor for all costs, expenses and other sums of money in connection
therewith (as additional rental) with interest at the maximum rate permitted
by law promptly upon demand. All materialmen, contractors, artisans,
mechanics, laborers, and any other persons now or hereafter contracting with
Lessee or any contractor or subcontractor of Lessee for the furnishing of any
labor services, materials, supplies, or equipment with respect to any portion
of the Premises, at any time from the date hereof until the end of the Lease
Term, are hereby charged with notice that they look exclusively to Lessee to
obtain payment for same.

         20. RIGHT TO INSPECT AND REPAIR. Lessor may enter the Premises but
shall not be obligated to do so (except as required by any specific provision
of this Lease) at any reasonable time on reasonable notice to Lessee (except
that no notice need be given in case of emergency) for the purpose of
inspection or the making of such repairs, replacement or additions, in, to,
on and about the Premises or the Building, as Lessor deems necessary or
desirable. Lessee shall have no claims or cause of action against Lessor by
reason thereof.

         21. SERVICES TO BE PROVIDED BY LESSOR. While Lessee is not in
monetary default under any of the provisions of this Lease, Lessor agrees to
furnish, except on holidays as set forth on Exhibit E attached hereto and
made a part hereof:

                                       11
<Page>

                  (A) The cleaning services, as set forth on Exhibit D attached
         hereto and made a part hereof, and subject to the conditions therein
         stated. Except as set forth on Exhibit D, Lessee shall pay the cost of
         all other cleaning services required by Lessee.

                  (B) Heating, ventilating and air conditioning (herein "HVAC"),
         as appropriate for the season and as set forth on Exhibit C attached
         hereto and made a part hereof, together with Common Facilities
         lighting, electric energy and water all during "Building Hours", as
         hereinafter defined.

         22. ELECTRICITY.

                  (A) Lessor shall furnish the Lessor's Standard Electric
Service (as hereinafter defined) which Lessee shall require in the Demised
Premises on a rent inclusion basis. That is, there shall be no charge to
Lessee for such Standard Electric Service by way of measuring the same on any
meter or otherwise, such Standard Electric Service being included in Lessor's
services which are covered by the Term Basic Rent reserved hereunder. Lessor
shall not be liable in any way to Lessee for any failure or defect in the
supply or character of electric energy furnished to the Demised Premises by
reason of any requirement, act or omission of the public utility serving the
Building with electricity or for any other reason not attributable to Lessor.
Lessee, however, shall furnish and install all replacement lighting tubes,
lamps, bulbs and ballasts required in the Demised Premises.

                  (B) The Lessor's Standard Electric Service shall, unless
otherwise provided by agreement in writing between the parties, provide the
electrical current for usual office requirements, equipment and heating,
ventilating and air-conditioning systems, all consistent with the
requirements of Exhibit C attached hereto, from 8:00 a.m. to 6:00 p.m. on
every day, Monday through Friday, and on Saturdays from 8:00 a.m. to 1:00
p.m., but excluding those holidays set forth on Exhibit E attached hereto. In
no event shall Lessor's Standard Electric Service include electrical current
for any computer room installation or for any requirements needing greater
than a 15-amp line except as otherwise set forth on Exhibit C, and all
electricity for any computer room or for any requirements needing greater
than a 15-amp line except as otherwise set forth on Exhibit C shall be paid
for by Lessee. All installations of electrical fixtures, appliances and
equipment within the Demised Premises shall be subject to Lessor's prior
written approval which approval shall not be unreasonably withheld or delayed.

                           Lessee shall pay to Lessor in equal monthly
installments, in advance, the reasonable cost of electrical services and
energy in excess of the Standard referred to above, whether resulting from
the installation of additional fixtures, appliances or equipment with or
without Lessor's consent, or from use at times other than those set forth
above.

                  (C) In the event that the utility company that furnishes
electric energy to Lessor, for supply to the Lessee, declines to continue
furnishing electric energy to Lessor for Lessor's Standard Electric Service
as a result of a statewide change in the manner in which utility companies
furnish electrical energy to commercial buildings, Lessor reserves the right
to discontinue furnishing electric energy to Lessee at any time, upon
reasonable notice to Lessee, and from and after the effective date of such
termination, Lessor shall no longer be obligated to furnish Lessee with
electric energy, provided, however, that such termination date shall not
occur until Lessee has made arrangements to obtain electric service directly
from the public utility company servicing the Building and has actually
received such service. If Lessor exercises such right of termination, this
Lease shall remain unaffected thereby and shall continue in full force and
effect; and thereafter Lessee shall diligently arrange to obtain electric
service directly from the utility company servicing the Building, and may
utilize the then existing electric feeders, risers and wiring serving the
Demised Premises to the extent available and safely capable of being used for
such purpose and only to the extent of Lessee's then authorized connected
load. Lessor shall not be obligated to pay any part of any cost required for
Lessee's direct electric service. Commencing with the date when Lessee
receives such direct service, the Annual Basic Rent payable under this Lease
shall be

                                       12
<Page>

reduced by (i) a sum equal to 10.76(%) percent through the day immediately
preceding the 6,150 Commencement Date or (ii) by a sum equal to 12.67(%) percent
from and after the 6,150 Commencement Date, as the case may be, of Lessor's
total cost of electricity for Lessor's Standard Electric Service, as that is
reflected in the Base Utility and Energy Costs established pursuant to
Subsection 23(B) of this Lease, and the Base Utility and Energy Period Costs
shall be reduced by the amount by which the Annual Basic Rent payable pursuant
to this Lease is reduced. However, to the extent that some of the Lessor's
Standard Electric Service continues to be furnished by Lessor, then the
reduction as provided for herein shall only be adjusted accordingly to reflect
said fact.

         23. ADDITIONAL RENT. It is expressly agreed that Lessee will pay in
addition to the Term Basic Rent, provided in Section 3 above, an additional
rental to cover Lessee's Proportionate Share, as hereinafter defined, of the
increased cost to Lessor, for each of the categories enumerated herein, over the
"Base Period Costs" (as hereinafter defined) for each of said categories.

                  (A) OPERATING COST ESCALATION. If during the Lease Term the
         Operating Costs incurred for the Building in which the Demised Premises
         are located and Office Building Area for any Lease Year or
         proportionate part thereof if the Lease Term expires prior to the
         expiration of a Lease Year (herein the "Comparison Period") shall be
         greater than the Base Operating Costs (adjusted proportionately if the
         Comparison Period is less than a Lease Year), then Lessee shall pay to
         Lessor, as Additional Rent, its Proportionate Share, as hereinafter
         defined, of all such excess Operating Costs. Operating Costs shall
         include, by way of illustration and not of limitation: personal
         property taxes; management fees; labor, including all wages and
         salaries, social security taxes, and other taxes which may be levied
         against Lessor upon such wages and salaries; supplies; repairs and
         maintenance; maintenance and service contracts; painting; wall and
         window washing; laundry and towel service; tools and equipment; fire
         and other insurance; trash removal; lawn care; snow removal and all
         other items properly constituting direct operating costs according to
         standard accounting practices whether or not the same shall be
         enumerated as part of the services or obligations of Lessor hereunder
         (hereinafter collectively referred to as the "Operating Costs"), but
         not including: depreciation of Building or equipment; interest; income,
         excess profits or similar taxes; costs of maintaining the Lessor's
         corporate existence; and franchise taxes. As used in this Subsection
         23(A), the Base Period Costs for Operating Costs, herein the Base
         Operating Costs, shall be those costs incurred during the first twelve
         (12) months of the Term (exclusive of any extraordinary or one-time
         costs).

                  (B) FUEL, UTILITIES AND ELECTRIC COST ESCALATION (hereinafter
         "Utility and Energy Costs"). If during the Lease Term the Utility and
         Energy Costs, including any fuel surcharges or adjustments with respect
         thereto, incurred for water, sewer, gas, electric and other utilities
         and heating, ventilating and air conditioning for the Building to
         include all leased and leasable areas (not separately billed or metered
         within the Building) and Common Facilities electric, lighting, water,
         sewer and other utilities for the Building and Office Building Area,
         for any Comparison Period shall be greater than the Base Utility and
         Energy Costs (adjusted proportionately if the Comparison Period is less
         than a Lease Year), then Lessee shall pay to Lessor as Additional Rent
         and without regard to the fact that Lessor has agreed to provide said
         service, its Proportionate Share, as hereinafter defined, of all such
         excess Utility and Energy Costs. As used in this Subsection 23(B), the
         Base Period Costs for Fuel, Utilities and Electric, herein the Base
         Utility and Energy Costs, shall be determined by multiplying the
         average rate in effect (including fuel surcharges and/or adjustments)
         between January 1, 1997 and June 30, 1997 by the usage incurred during
         the first twelve (12) months of the Term.

                                       13
<Page>

                  (C) TAX ESCALATION. If during the Lease Term the Real Estate
         Taxes for the Building and Office Building Area at which the Demised
         Premises are located for any Comparison Period shall be greater than
         the Base Real Estate Taxes (adjusted proportionately if the Comparison
         Period is less than a Lease Year), then Lessee shall pay to Lessor as
         Additional Rent, its Proportionate Share, as hereinafter defined, of
         all such excess Real Estate Taxes.

                           As used in this Subsection 23(C), the words and terms
         which follow mean and include the following:

                           (i) The Base Period Costs for Real Estate Taxes,
                  herein the "Base Real Estate Taxes," shall be those real
                  estate taxes assessed against the Building and Office Building
                  Area applicable to July 1, 1996 through June 30, 1997.

                           (ii) "Real Estate Taxes" shall mean the property
                  taxes and assessments imposed upon the Building and Office
                  Building Area, or upon the Term Basic Rent and Additional
                  Rent, as such, payable by Lessor, including, but not limited
                  to, real estate, city, county, village, school and transit
                  taxes, or taxes, assessments or charges levied, imposed or
                  assessed against the Building and Office Building Area by any
                  other taxing authority, whether general or specific, ordinary
                  or extraordinary, foreseen or unforeseen. If, due to a future
                  change in the method of taxation, any franchise, income or
                  profit tax shall be levied against Lessor in substitution for,
                  or in lieu of, or in addition to, any tax which would
                  otherwise constitute a Real Estate Tax, such franchise, income
                  or profit tax shall be deemed to be a Real Estate Tax for the
                  purposes hereof; conversely, any additional real estate tax
                  hereafter imposed in substitution for, or in lieu of, any
                  franchise, income or profit tax (which is not in substitution
                  for, or in lieu of, or in addition to, a Real Estate Tax as
                  hereinbefore provided) shall not be deemed a Real Estate Tax
                  for the purposes hereof. Notwithstanding anything contained
                  herein to the contrary, Lessee shall assume and pay to Lessor
                  in full at the time of paying the Term Basic Rent any excise,
                  sales, use, gross receipts or other taxes (other than a net
                  income, excess profits or similar tax) which may be imposed on
                  or measured by such Term Basic Rent or Additional Rent or may
                  be imposed on Lessor or on account of the letting or which
                  Lessor may be required to pay or collect under any law now in
                  effect or hereafter enacted.

                  (D) LEASE YEAR. As used in this Lease, Lease Year shall mean
         the twelve (12) month period commencing on the Commencement Date and
         each twelve (12) month period thereafter. Once the Base Period Costs
         are established, in the event any lease period is less than twelve (12)
         months, then the Base Period Costs for the categories listed above
         shall be adjusted to equal the proportion that said period bears to
         twelve (12) months, and Lessee shall pay to Lessor as Additional Rent
         for such period, an amount equal to Lessee's Proportionate Share, as
         hereinafter defined, of the excess for said period over the adjusted
         base with respect to each of the aforesaid categories. Notwithstanding
         anything contained herein to the contrary, once the Base Period Costs
         are established, Lessor reserves the right to calendarize billing and
         payment in order to establish operating consistency.

                  (E) PAYMENT. At any time, and from time to time, after the
         establishment of the Base Period Costs for each of the categories
         referred to

                                       14
<Page>

         above, Lessor shall advise Lessee in writing of Lessee's Proportionate
         Share with respect to each of the categories as estimated for the
         current Lease Year [and for each succeeding Lease Year or proportionate
         part thereof if the last period prior to the Lease's termination is
         less than twelve (12) months] as then known to Lessor, and thereafter,
         Lessee shall pay as Additional Rent, its Proportionate Share, as
         hereinafter defined, of the excess of these costs over the Base Period
         Costs for the then current period affected by such advice (as the same
         may be periodically revised by Lessor as additional costs are incurred)
         in equal monthly installments on the first day of each month, such new
         rates being applied to any months for which the Monthly Rent shall have
         already been paid which are affected by the Operating Cost Escalation
         and/or Utility and Energy Cost Escalation, and/or Tax Escalation Costs
         above referred to, as well as the unexpired months of the current
         period, the adjustment for the then expired months to be made at the
         payment of the next succeeding installment of Monthly Basic Rent, all
         subject to final adjustment at the expiration of each Lease Year as
         defined in Subsection 23(D) hereof [or proportionate part thereof, if
         the last period prior to the Lease's termination is less than twelve
         (12) months].

                           In the event the last period prior to the Lease's
         termination is less than twelve (12) months, the Base Period Costs
         during said period shall be proportionately reduced to correspond to
         the duration of said final period.

                  (F) BOOKS AND RECORDS. For the protection of Lessee, Lessor
         shall maintain books of account which shall be open to Lessee and its
         representatives, at all reasonable times so that Lessee can determine
         that such Operating, Utility, Energy and Tax Costs have, in fact, been
         paid or incurred. Any disagreement with respect to any one or more of
         said charges if not satisfactorily settled between Lessor and Lessee
         shall be referred by either party to an independent certified public
         accountant to be mutually agreed upon, and if such an accountant cannot
         be agreed upon, the American Arbitration Association may be asked by
         either party to select an arbitrator, whose decision on the dispute
         will be final and binding upon both parties, who shall jointly share
         any cost of such arbitration. Pending resolution of said dispute,
         Lessee shall pay to Lessor the sum so billed by Lessor subject to its
         ultimate resolution as aforesaid.

                  (G) RIGHT OF REVIEW. Once Lessor shall have finally determined
         said Operating, Utility and Energy or Tax Costs at the expiration of a
         Lease Year, then as to the item so established, Lessee shall only be
         entitled to dispute said charge as finally established for a period of
         six (6) months after such charge is finally established, and Lessee
         specifically waives any right to dispute any such charge at the
         expiration of said six (6) month period.

                  (H) OCCUPANCY ADJUSTMENT. If, with respect to Operating Cost
         Escalation, as established in Subsection 23(A) hereof, and Utility and
         Energy Cost Escalation, as established in Subsection 23(B) hereof, the
         Building is not ninety-five (95%) percent occupied during the
         establishment of the respective Base Periods, then the Base Period
         Costs incurred with respect to said Operating Cost or Utility and
         Energy Cost shall be adjusted during any such period within the Base
         Period so as to reflect ninety-five (95%) percent occupancy. Similarly,
         if, during any Lease Year or proportionate part thereof subsequent to
         the Base Period the Building is less than ninety-five (95%) percent
         occupied during all or part of the Lease Year involved, the Utility and
         Energy Cost and Operating Cost shall not be less than that which would
         have been incurred had ninety-five (95%) percent of the Building been
         occupied. The aforesaid adjustment shall only be made with respect to
         those items that are in fact affected by variations in occupancy
         levels. To the extent any Operating Cost or Utility and Energy Cost is
         separately billed or metered or

                                       15

<Page>

         paid for directly by any Building tenant, to include but not be limited
         to Lessee, or for which Lessor receives reimbursements, said space
         shall be considered vacant space for purposes of the aforesaid
         adjustment.

                  (I) Notwithstanding anything contained herein to the contrary,
         Lessee shall not be obligated to pay Utility and Energy Costs
         escalations pursuant to Subsection 23(B) or Real Estate Tax
         escalations pursuant to Subsection 23(C) above until the commencement
         of the second (2nd) Lease Year of the Term, whereupon all amounts which
         have accrued for the period prior thereto with respect to such Utility
         and Energy Costs escalations and Real Estate Tax escalations shall be
         due and payable.

         24. INTERRUPTION OF SERVICES OR USE. Interruption or curtailment of any
service maintained in the Building or at the Office Building Area, if caused by
Force Majeure, as hereinafter defined, shall not entitle Lessee to any claim
against Lessor or to any abatement in Term Basic Rent or Additional Rent, and
shall not constitute a constructive or partial eviction, unless Lessor fails to
take measures as may be reasonable under the circumstances to restore the
service. If Lessor fails to take such measures as may be reasonable under the
circumstances to restore the curtailed service, Lessee's remedies shall be
limited to an equitable abatement of Term Basic Rent and Additional Rent for the
duration of the curtailment beyond said reasonable period to the extent such
Premises are not reasonably usable by Lessee or to a claim of constructive
eviction. If the Premises are rendered untenantable in whole or in part, for a
period of six (6) consecutive business days, by the making of repairs,
replacements or additions, other than those made with Lessee's consent or caused
by misuse or neglect by Lessee, or Lessee's agents, servants, visitors or
licensees, there shall be a proportionate abatement of Term Basic Rent and
Additional Rent from and after said sixth (6th) consecutive business day and
continuing for the period of such untenantability. In no event shall Lessee be
entitled to claim a constructive eviction from the Premises unless Lessee shall
first have notified Lessor in writing of the condition or conditions giving rise
thereto, and, if the complaints be justified, unless Lessor shall have failed
within a reasonable time after receipt of such notice to remedy, or commence and
proceed with due diligence to remedy, such condition or conditions, all subject
to Force Majeure, as hereinafter defined. The remedies provided for in this
Section 24 shall be Lessee's sole remedies for any interruption of service or
use as described above.

         25. LESSEE'S ESTOPPEL.

                  (A) Lessee shall, from time to time, within ten (10) days of
Lessor's written request, execute, acknowledge and deliver to Lessor a written
statement certifying that the Lease is unmodified and in full force and effect,
or that the Lease is in fall force and effect as modified and listing the
instruments of modification; the dates to which the Term Basic Rent and
Additional Rent and charges have been paid; to the best of Lessee's knowledge,
whether or not Lessor is in default hereunder, and, if so, specifying the nature
of the default; and any other information which Lessor shall reasonably request.
It is intended that any such statement delivered pursuant to this Section 25 may
be relied on by a prospective purchaser of Lessor's interest or mortgagee of
Lessor's interest or assignee of any mortgage of Lessor's interest.

                  (B) Lessee's failure to deliver such statement within such
time shall be conclusive upon Lessee that: (i) this Lease is in full force and
effect and not modified except as Lessor may represent; (ii) not more than one
(1) payment of Monthly Basic Rent has been paid in advance; (iii) there are no
such defaults; and, (iv) notices to Lessee shall be sent to Lessee's mailing
address as set forth in this Lease. Notwithstanding the presumptions of this
Section, Lessee shall not be relieved of its obligation to deliver said
statement.

         26. HOLDOVER TENANCY. If Lessee holds possession of the Premises after
the Term of this Lease, Lessee shall become a tenant from month to month under
the provisions herein provided, but at a monthly basic rental as provided for
pursuant to N.J.S.A. 2A:42-6 and without the requirement for demand or notice by
Lessor to Lessee

                                       16

<Page>

demanding delivery of possession of said Premises (but Additional Rent shall
continue as provided in this Lease), which sum shall be payable in advance on
the first day of each month, and such tenancy shall continue until terminated by
Lessor, or until Lessee shall have given to Lessor, at least sixty (60) days
prior to the intended date of termination, a written notice of intent to
terminate such tenancy, which termination date must be as of the end of a
calendar month. The time limitations described in this Section 26 shall not be
subject to extension for Force Majeure.

         27. LESSOR'S WORK - LESSEE'S DRAWINGS.

                  (A) Lessor agrees that, at Lessor's expense, prior to the
commencement of the Term of this Lease, it will do substantially all of the work
in the Demised Premises in accordance with Exhibit C attached hereto and made a
part hereof. All of said Exhibit C work, whether paid for in whole or in part by
Lessee, is and shall remain the Lessor's property.

                  (B) Lessee will supply such drawings and information to Lessor
as and when required as set forth in Exhibit C. Any delay occasioned by Lessee's
failure to supply such drawings and information on or before the dates set forth
in Exhibit C shall not delay the Commencement Date of the Term, as hereinafter
defined, and Lessee's obligations hereunder and the Commencement Date shall be
the date the Premises would have been delivered to Lessee pursuant to Section 2,
but for Lessee's delay.

                  (C) Lease Commencement shall occur and the Commencement Date
is defined as that date when Lessor has done substantially all of the work to be
done by Lessor in accordance with Exhibit C unless Lessor has been precluded
from completing said work as a result of Lessee's acts or omissions including
but not limited to its failure to comply with Subsection 27(B) above. Occupancy
by Lessee or the delivery of a Certificate of Occupancy (temporary or permanent)
by Lessor (if required pursuant to local law) shall be prima facie evidence that
Lessor has done substantially all of the work. Lessee's early entry upon the
Premises for the purpose of performing installations therein as permitted
pursuant to Exhibit C shall not be deemed "occupancy" for the purposes of this
Subsection 27(C).

         28. RIGHT TO SHOW PREMISES. Lessor may show the Premises to prospective
purchasers and mortgagees; and, during the nine (9) months prior to termination
of this Lease, to prospective tenants, during Building Hours on reasonable
notice to Lessee.

         29. WAIVER OF JURY TRIAL/NON-MANDATORY COUNTERCLAIMS. If Lessor
commences any summary proceedings or an action for nonpayment of Term Basic Rent
or Additional Rent, Lessee shall not interpose any non-mandatory counterclaim of
any nature or description in any such proceedings or action. Lessee and Lessor
both waive a trial by jury of any or all issues arising in any action or
proceeding between the parties hereto or their successors under or connected
with this Lease or any of its provisions.

         30. LATE CHARGE. Anything in this Lease to the contrary
notwithstanding, at Lessor's option, Lessee shall pay a "Late Charge" of six
(6%) percent of any installment of Monthly Basic Rent or Additional Rent paid
more than five (5) days after the due date thereof, to cover the extra expense
involved in handling delinquent payments. Lessee shall not be charged a Late
Charge the first two (2) times Lessee is late during each Lease Year of the Term
until Lessee, as to each such time during each Lease Year, is given five (5)
days' notice and an opportunity to cure said nonpayment within said notice
period and fails to cure said nonpayment within said time.

         31. NO OTHER REPRESENTATIONS. No representations or promises shall be
binding on the parties hereto except those representations and promises
contained herein or in some future writing signed by the party making such
representation(s) or promise(s).

         32. QUIET ENJOYMENT. Lessor covenants that if, and so long as, Lessee
pays the Basic Rent, and any Additional Rent as herein provided, and performs
the covenants

                                       17

<Page>

hereof, Lessor shall do nothing to affect Lessee's right to peaceably and
quietly have, hold and enjoy the Premises for the Term herein mentioned, subject
to the provisions of this Lease and to any mortgage or deed of trust to which
this Lease shall be subordinate.

         33. INSURANCE.

                  (A) LESSEE'S INSURANCE.

                           (1) Lessee covenants and represents, said
         representation being specifically designed to induce Lessor to execute
         this Lease, that during the entire Term hereof, at its sole cost and
         expense, Lessee shall obtain, maintain and keep in full force and
         effect the following insurance:

                                    (a) "All Risk" property insurance against
                  fire, theft, vandalism, malicious mischief, sprinkler leakage
                  and such additional perils as are now or hereafter may be,
                  included in a standard extended coverage endorsement from time
                  to time in general use in the State of New Jersey upon
                  property of every description and kind owned by Lessee and or
                  under Lessee's care, custody or control located in the
                  Building or within the Office Building Area or for which
                  Lessee is legally liable or installed by or on behalf of
                  Lessee, including by way of example and not by way of
                  limitation, furniture, fixtures, fittings, installations and
                  any other personal property (but excluding the work done by
                  Lessor in connection with Exhibit C which is owned by Lessor)
                  in an amount equal to the full replacement cost thereof.

                                    (b) Comprehensive General Liability
                  Insurance coverage to include personal injury, bodily injury,
                  broad form property damage, operations hazard, owner's
                  protective coverage, blanket contractual liability, products
                  and completed operations liability naming Lessor and Lessor's
                  mortgagee or trust deed holder and ground lessors (if any) as
                  additional named insureds in an amount per occurrence of not
                  less than One Million and 00/100 ($1,000,000.00) Dollars
                  combined single limit bodily injury and property damage.

                                    (c) Business interruption insurance in such
                  amounts as will reimburse Lessee for direct or indirect loss
                  of earnings attributable to all perils commonly insured
                  against by prudent tenants or assumed by Lessee pursuant to
                  this Lease or attributable to prevention or denial of access
                  to the Premises, Building or Office Building Area as a result
                  of such perils.

                                    (d) Workers' Compensation insurance in form
                  and amount as required by law.

                                    (e) Any other form or forms of insurance or
                  any increase in the limits of any of the aforesaid enumerated
                  coverages or other forms of insurance as Lessor or the
                  mortgagees or ground lessors (if any) of Lessor may reasonably
                  require from time to time if in the reasonable opinion of
                  Lessor or said mortgagees or ground lessors said coverage
                  and/or limits become inadequate or less than that commonly
                  maintained by prudent tenants in similar buildings in the area
                  by tenants making similar uses.

                                       18

<Page>

                           (2) All insurance policies required pursuant to this
         Subsection 33(A) shall be taken out with insurers rated A+XV by A.M.
         Best Company, Oldwick, New Jersey who are licensed to do business in
         the State of New Jersey and shall be in form satisfactory from time to
         time to Lessor. A policy or certificate evidencing such insurance
         together with a paid bill shall be delivered to Lessor not less than
         fifteen (15) days prior to the commencement of the Term hereof. Such
         insurance policy or certificate will unequivocally provide an
         undertaking by the insurers to notify Lessor and the mortgagees or
         ground lessors (if any) of Lessor in writing not less than thirty (30)
         days prior to any material change, reduction in coverage, cancellation,
         or other termination thereof. Should a certificate of insurance
         initially be provided, a policy shall be furnished by Lessee within
         thirty (30) days of the Term's commencement. The aforesaid insurance
         shall be written with no deductible.

                           (3) In the event of damage to or destruction of the
         Building and/or Premises entitling Lessor or Lessee to terminate this
         Lease pursuant to Section 11 hereof, and if this Lease be so
         terminated, Lessee will immediately pay to Lessor all of its insurance
         proceeds, if any, relating to the leasehold improvements and
         alterations (but not Lessee's trade fixtures, equipment, furniture or
         other personal property of Lessee in the Premises) which have become
         Lessor's property on installation or would have become Lessor's
         property at the Term's expiration or sooner termination. If the
         termination of the Lease, at Lessor's election, is due to damage to the
         Building, and if the Premises have not been so damaged, Lessee will
         deliver to Lessor, in accordance with the provisions of this Lease, the
         improvements and alterations to the Premises which have become on
         installation or would have become at the Term's expiration, Lessor's
         property.

                           (4) Lessee agrees that it will not keep or use or
         offer for sale (if sales of goods is a permitted use pursuant to
         Section 4 hereof) in or upon the Premises or within the Building or
         Office Building Area any article which may be prohibited by any
         insurance policy in force from time to time covering the Building or
         Office Building Area. In the event Lessee's occupancy or conduct of
         business in or on the Premises or Building or Office Building Area,
         whether or not Lessor has consented to the same, results in any
         increase in premiums for insurance carried from time to time by Lessor
         with respect to the Building or Office Building Area, Lessee shall pay
         such increase in premiums as Additional Rent within ten (10) days after
         being billed therefor by Lessor. In determining whether increased
         premiums are a result of Lessee's use and occupancy a schedule issued
         by the organization computing the insurance rate on the Building or
         Office Building Area showing the components of such rate shall be
         conclusive evidence of the items and charges making up such rate.
         Lessee shall promptly comply with all reasonable requirements of the
         insurance authority or of any insurer now or hereafter in effect
         relating to the Building, Office Building Area or Premises.

                           (5) If any insurance policy carried by either party
         as required by this Section 33 shall be cancelled or cancellation shall
         be threatened or the coverage thereunder reduced or threatened to be
         reduced in any way by reason of the use or occupation of the Premises,
         Office Building Area or Building or any part thereof by Lessee or any
         assignee or sublessee of Lessee or anyone permitted by Lessee to be
         upon the Premises, and if Lessee fails to remedy the conditions giving
         rise to said cancellation or threatened cancellation or reduction in
         coverage on or before the earlier of (i) forty-eight (48) hours after
         notice thereof from Lessor, or (ii) prior to said cancellation or
         reduction becoming effective, Lessee shall be in default hereunder and
         Lessor shall have all of the remedies available to Lessor pursuant to
         this Lease.

                                       19
<Page>

                  (B) LESSOR'S INSURANCE. Lessor covenants and agrees that
throughout the Term it will insure the Building [excluding any property with
respect to which Lessee is obligated to insure pursuant to Subsection
33(A)(1)(a) above] against damage by fire and standard extended coverage perils
and public liability insurance in such reasonable amounts with such reasonable
deductibles as required by any mortgagee or ground lessor (if any), or if none,
as would be carried by a prudent owner of a similar building in the area. In
addition, Lessor shall maintain and keep in force and effect during the Term,
rental income insurance insuring Lessor against abatement or loss of Term Basic
Rent, including items of Additional Rent, in case of fire or other casualty
similarly insured against, in an amount at least equal to the Term Basic Rent
and Additional Rent during, at the minimum, one Calendar Year hereunder. Lessor
may, but shall not be obligated to, take out and carry any other forms of
insurance as it or the mortgagee or ground lessor (if any) of Lessor may require
or reasonably determine available. All insurance carried by Lessor on the
Building or Office Building Area shall be included as an Operating Expense
pursuant to Subsection 23(A). Notwithstanding its inclusion as an Operating
Expense or any contribution by Lessee to the cost of insurance premiums by
Lessee as provided herein, Lessee acknowledges that it has no right to receive
any proceeds from any such insurance policies carried by Lessor. Lessee further
acknowledges that the exculpatory provisions of this Lease as set forth in
Section 38 and the provisions of this Section 33 as to Lessee's insurance are
designed to insure adequate coverage as to Lessee's property and business
without regard to fault and to avoid Lessor obtaining similar coverage for said
loss for its negligence or that of its agents, servants or employees which could
result in additional costs includable as part of Operating Expenses which are
payable by Lessee. Lessor will not carry insurance of any kind on Lessee's
furniture or furnishings, or on any fixtures, equipment, appurtenances or
improvements (other than those enumerated in Exhibit C which belong to Lessor)
of Lessee under this Lease and Lessor shall not, except as to the aforesaid
Exhibit C items owned by Lessor, be obligated to repair any damage thereto or
replace the same.

                  (C) WAIVER OF SUBROGATION. Any all risk policy or similar
casualty insurance, which either party obtains in connection with the Premises,
Building or Office Building Area shall include a clause or endorsement denying
the insurer any rights of subrogation against the other party (i.e. Lessor or
Lessee) for all perils covered by said policy. Should such waiver not be
available then the policy for which the waiver is not available must name the
other party as an additional named insured affording it the same coverage as
that provided the party obtaining said coverage.

         34. RULES OF CONSTRUCTION/APPLICABLE LAW. Any table of contents,
captions, headings and titles in this Lease are solely for convenience of
reference and shall not affect its interpretation. This Lease shall be construed
without regard to any presumption or other rule requiring construction against
the party causing this Lease to be drafted. If any words or phrases in this
Lease shall have been stricken out or otherwise eliminated, whether or not any
other words or phrases have been added, this Lease shall be construed as if the
words or phrases so stricken out or otherwise eliminated were never included in
this Lease no implication or inference shall be drawn from the fact that said
words or phrases were so stricken out or otherwise eliminated. Each covenant,
agreement, obligation or other provision of this Lease on Lessee's part to be
performed, shall be deemed and construed as a separate and independent covenant
of Lessee, not dependent on any other provision of this Lease. All terms and
words used in this Lease, regardless of the number or gender in which they are
used, shall be deemed to include any other number and any other gender as the
context may require. This Lease shall be governed and construed in accordance
with the laws of the State of New Jersey (excluding New Jersey conflict of laws)
and by the state courts of New Jersey. If any of the provisions of this Lease,
or the application thereof to any person or circumstances, shall to any extent
be invalid or unenforceable, the remainder of this Lease, or the application of
such provision or provisions to persons or circumstances other than those as to
whom or which it is held invalid or unenforceable, shall not be affected
thereby, and every provision of this Lease shall be valid and enforceable to the
fullest extent permitted by law.

                                       20
<Page>

         35. INDEMNITY. Lessee shall indemnify and save harmless Lessor and its
agents against and from (a) any and all claims (i) arising from (x) the conduct
or management by Lessee, its subtenants, licensees, its or their employees,
agents, contractors or invitees on the Demised Premises or of any business
therein, or (y) any work or thing whatsoever done, or any condition created
(other than by Lessor for Lessor's account) in or about the Dernised Premises
during the Term of this Lease or during the period of time, if any, prior to the
Commencement Date that Lessee may have been given access to the Demised
Premises, or (ii) arising from any negligent or otherwise wrongful act or
omission of Lessee or any of its subtenants or licensees or its or their
employees, agents, contractors or invitees, and (b) all costs, expenses and
liabilities incurred in or in connection with each such claim or action or
proceeding brought thereon. In case any action or proceeding be brought against
Lessor by reason of any such claim, Lessee, upon notice from Lessor, shall
resist and defend such action or proceeding. The provisions of this Section 35
shall survive the expiration or sooner termination of this Lease.

         36. APPLICABILITY TO HEIRS AND ASSIGNS. The provisions of this Lease
shall apply to, bind and inure to the benefit of Lessor and Lessee, and their
respective heirs, successors, legal representatives and assigns. It is
understood that the term "Lessor" as used in this Lease means only the owner, a
mortgagee in possession or a term lessee of the Building, so that in the event
of any sale of the Building or of any lease thereof, or if a mortgagee shall
take possession of the Premises, Lessor named herein shall be and hereby is
entirely freed and relieved of all covenants and obligations of Lessor hereunder
accruing thereafter, and it shall be deemed without further agreement that the
purchaser, the term lessee of the Building, or the mortgagee in possession has
assumed and agreed to carry out any and all covenants and obligations of Lessor
hereunder.

         37. PARKING SPACES. Lessee's occupancy of the Demised Premises shall
include the use of one hundred eighty-four (184) parking spaces only, eighteen
(18) of which Lessor shall assign, and one hundred sixty-six (166) of which will
be unassigned. From and after the 6,150 Commencement Date, Lessee's occupancy of
the Demised Premises shall include the use of two hundred nine (209) parking
spaces only, twenty-one (21) of which Lessor shall assign, and one hundred
eighty-eight (188) of which will be unassigned. Lessor reserves the right to
reassign assigned parking to comparable facilities in connection with any
modification to the Building or Office Building Area permitted pursuant to this
Lease. Nothing contained herein shall be deemed to impose any obligation on
Lessor to police the parking area.

         38. LESSOR'S EXCULPATION. Lessor shall not be liable to Lessee for any
loss suffered by Lessee under any circumstances, including, but not limited to
(i) that arising from the negligence of Lessor, its agents, servants, invitees,
contractors or subcontractors, or from defects, errors or omissions in the
construction or design of the Premises and/or the Building and Office Building
Area including the structural and non-structural portions thereof; or (ii) for
loss of or injury to Lessee or to Lessee's property or that for which Lessee is
legally liable from any cause whatsoever, including but not limited to theft or
burglary; or (iii) for that which results from or is incidental to the
furnishing of or failure to furnish or the interruption in connection with the
furnishing of any service which Lessor is obligated to furnish pursuant to this
Lease; or (iv) for that which results from any inspection, repair, alteration or
addition or the failure thereof undertaken or failed to be undertaken by Lessor;
or (v) for any interruption to Lessee's business, however occurring.

                  The aforesaid exculpatory Section is to induce the Lessor, in
its judgment, to avoid or minimize covering risks which are better quantified
and covered by Lessee either through insurance (or self-insurance or
combinations thereof if specifically permitted pursuant to this Lease) thereby
permitting potential cost savings in connection with the Operating Expenses
borne by Lessee pursuant to Section 23.

         39. BROKER. Lessee represents and warrants to Lessor that Edward S.
Gordon Company of New Jersey is the sole broker with whom Lessee has negotiated
in bringing about this Lease and Lessee agrees to indemnify and hold Lessor
harmless from any and all

                                       21
<Page>

claims of other brokers and expenses in connection therewith arising out of or
in connection with the negotiation of or the entering into this Lease by Lessor
and Lessee.

         40. PERSONAL LIABILITY. Notwithstanding anything to the contrary
provided in this Lease, it is specifically understood and agreed, such agreement
being a primary consideration for the execution of this Lease by Lessor, that
there shall be absolutely no personal liability on the part of Lessor, its
constituent members, (to include but not be limited to officers, directors,
partners and trustees), their respective successors, assigns or any mortgagee in
possession (for the purposes of this Section, collectively referred to as
"Lessor"), with respect to any of the terms, covenants and conditions of this
Lease, and that Lessee shall look solely to the equity of Lessor in the Building
for the satisfaction of each and every remedy of Lessee in the event of any
breach by Lessor of any of the terms, covenants and conditions of this Lease to
be performed by Lessor, such exculpation of liability to be absolute and without
any exceptions whatsoever. A deficit capital account of any portion in Lessor
shall not be deemed an asset or property of Lessor. The foregoing limitation of
liability shall be noted in any judgment secured against Lessor and in the
judgment index.

         41. NO OPTION. The submission of this Lease Agreement for examination
does not constitute a reservation of, or option for, the Premises, and this
Lease Agreement becomes effective as a Lease Agreement only upon execution and
delivery thereof by Lessor and Lessee.

         42. DEFINITIONS.

                  (A) PROPORTIONATE SHARE. Lessee's Proportionate Share,
wherever that phrase is used, shall be (i) 10.76(%) percent through the day
immediately preceding the 6,150 Commencement Date or (ii) 12.67(%) percent from
and after the 6,150 Commencement Date, as the case may be, which the parties
agree reflects and will be continually adjusted to reflect the sum arrived at by
dividing the gross square feet of the area rented to Lessee (including an
allocable share of all Common Facilities) as set forth in Section 1 [the
numerator], plus any additional gross square footage leased from time to time
pursuant to this Lease, by the total number of gross square feet of the entire
Building (or additional buildings that may be constructed within the Office
Building Area) [the denominator], measured outside glass line to outside glass
line but excluding therefrom any storage areas. Lessor shall have the right to
make changes or revisions in the Common Facilities of the Building so as to
provide additional leasing area. Lessor shall also have the right to construct
additional buildings in the Office Building Area for such purposes as Lessor may
deem appropriate and subdivide the lands for that purpose if necessary, and upon
so doing, the Office Building Area shall become the subdivided lot on which the
Building in which the Demised Premises is located. If any service provided for
in Subsection 23(A) or any utility provided for in Subsection 23(B) is
separately billed or separately metered within the Building, then the square
footage so billed or metered shall be deemed vacant and if applicable subject to
the Occupancy Adjustment set forth in Subsection 23(H). Lessee understands that
as a result of changes in the layout of the Common Facilities from time to time
occurring due to, by way of example and not by way of limitation, the
rearrangement of corridors, the aggregate of all Building tenant proportionate
shares may be equal to, less than or greater than one hundred (100%) percent.

                  (B) COMMON FACILITIES. Common Facilities shall include, by way
of example and not by way of limitation, the nonassigned parking areas; lobby;
elevator(s); fire stairs; public hallways; public lavatories; and all other
general Building facilities that service all Building tenants; air conditioning
rooms; fan rooms; janitors' closets; electrical closets; telephone closets;
elevator shafts and machine rooms; flues; stacks; pipe shafts and vertical ducts
with their enclosing walls. Lessee's use of those Common Facilities not open to
all Building tenants is subject to Lessor's consent which may be denied for any
reason. Lessor may at any time close temporarily any Common Facilities to make
repairs or changes therein or to effect construction, repairs or changes within
the Building or Office Building Area, or to discourage non-tenant parking or to
prevent the dedication of the same, and may do such

                                       22
<Page>

other acts in and to the Common Facilities as in its judgment may be desirable
to improve the convenience thereof but shall always in connection therewith
endeavor to minimize any inconvenience to Lessee.

                  (C) FORCE MAJEURE. Force Majeure shall mean and include those
situations beyond either party's control, including by way of example and not by
way of limitation, acts of God; accidents; repairs; strikes; shortages of labor,
supplies or materials; inclement weather; or, where applicable, the passage of
time while waiting for an adjustment of insurance proceeds. Any time limits
required to be met by either party hereunder, whether specifically made subject
to Force Majeure or not, except those related to the payment of Term Basic Rent
or Additional Rent and except as to the time periods set forth in Section 26,
shall, unless specifically stated to the contrary elsewhere in this Lease, be
automatically extended by the number of days by which any performance called for
is delayed due to Force Majeure.

                  (D) BUILDING HOURS. As used in this Lease, the Building Hours
shall be Monday through Friday, 8:00 a.m. to 6:00 p.m., and Saturday, 8:00 a.m
to 1:00 p.m., excluding those holidays as set forth on Exhibit E attached hereto
and made a part hereof, except that Common Facilities lighting in the Building
and Office Building Area shall be maintained for such additional hours as, in
Lessor's sole judgment is necessary or desirable to insure proper operation of
the Building and Office Building Area.

                  (E) ADDITIONAL RENT. As used in this Lease, Additional Rent
shall mean all sums in addition to Term Basic Rent payable by Lessee to Lessor
pursuant to the provisions of this Lease.

                  (F) AFFILIATED COMPANY. Affiliated Company shall mean any
corporation related to such party as a parent, subsidiary or brother-sister
corporation so that such corporation and such party or such corporation and such
party and other corporations constitute a controlled group as determined under
Section 1563 of the Internal Revenue Code of 1986, as amended, and as elaborated
by the Treasury Regulations promulgated thereunder.

         43. LEASE COMMENCEMENT. Notwithstanding anything contained herein to
the contrary, if Lessor, for any reason whatsoever, including Lessor's
negligence, cannot deliver possession of the Premises as provided for in
Subsection 27(A) to Lessee at the commencement of the agreed Term as set forth
in Section 2, this Lease shall not be void or voidable, nor shall Lessor be
liable to Lessee for any loss or damage resulting therefrom, but in that event,
the Lease Term shall be for the full Term as specified above to commence from
and after the date Lessor shall have delivered possession of the Premises to
Lessee or from the date Lessor would have delivered possession of the Premises
to Lessee but for Lessee's failure to timely supply to Lessor such drawings
and/or information required by Exhibit C or for any other reason attributable to
Lessee (herein the "Commencement Date")  and to terminate at 11:59 p.m. of the
day immediately preceding said seven (7) year and two (2) month anniversary of
the Commencement Date, and if requested by Lessor, Lessor and Lessee shall, by a
writing signed by the parties, ratify and confirm said commencement and
termination dates. Nothing contained herein shall be deemed to modify the
commencement of the Lease Term as set forth in Section 2 and Lessee's
obligations hereunder if Lessor is unable to deliver the Demised Premises on the
Commencement Date by reason of Lessee's failure to comply with the requirements
of Subsection 27(B). Notwithstanding anything contained herein to the contrary,
if Lessor shall not have delivered possession of the Demised Premises to Lessee
on or before August 1, 1997 as such date may be extended for reasons of Force
Majeure, and provided the reason therefor has not been as a result of Lessee's
acts or omissions, then, and in such event, Lessee may cancel this Lease upon
thirty (30) days' notice to Lessor, which notice may be given on or after July
1, 1997(as such date may be extended for reasons of Force Majeure), and unless
Lessor delivers possession of the Demised Premises within the aforesaid thirty
(30) days (similarly extended for reasons of Force Majeure), this Lease shall
terminate upon the expiration of said thirty (30) day period (as extended for
Force Majeure if applicable) and the parties shall be released herefrom.

                                       23
<Page>

         44. NOTICES. Any notice by either party to the other shall be in
writing and shall be deemed to have been duly given only if delivered personally
or if sent by a recognized overnight courier service or if sent by registered
mail or certified mail in a postpaid envelope addressed, if to Lessee, at the
above described Building, with a copy to Norman R. Gritsch, Esq., Long Beach
Mortgage Company, 1100 Town and Country Road, Orange, California 92668; if to
Lessor, at Lessor's address as set forth above; or, to either at such other
address as Lessee or Lessor, respectively, may designate in writing. Notice
shall be deemed to have been duly given, if delivered personally or by a
recognized overnight courier service, on delivery thereof, and if mailed, upon
the tenth (10th) day after the mailing thereof.

         45. MORTGAGEE'S NOTICE AND OPPORTUNITY TO CURE. Lessee agrees to give
any mortgagees and/or trust deed holders, by registered mail, a copy of any
notice of default served upon Lessor, provided that, prior to such notice,
Lessee has been notified in writing (by way of notice of assignment of rents and
leases or otherwise) of the address of such mortgagees and/or trust deed
holders. Lessee further agrees that, if Lessor shall have failed to cure such
default within the time provided for in this Lease, then the mortgagees and/or
trust deed holders shall have an additional thirty (30) days within which to
cure such default, or if such default cannot be cured within that time, then
such additional time as may be necessary, if within such thirty (30) days, any
mortgagee and/or trust deed holder has commenced and is diligently pursuing the
remedies necessary to cure such default (including but not limited to
commencement of foreclosure proceedings if necessary to effect such cure), in
which event this Lease shall not be terminated while such remedies are being so
diligently pursued.

         46. LEASE CONDITION. This Lease is expressly conditioned upon Lessor
obtaining the consent of its permanent lender to the terms of this Lease within
thirty (30) days of the date hereof, failing which this Lease, at Lessor's sole
option, shall be null and void and the parties released herefrom and any deposit
monies paid to Lessor upon execution hereof shall be promptly returned to
Lessee.

         47. ACCORD AND SATISFACTION. No payment by Lessee or receipt by Lessor
of a lesser amount than the Basic Rent and additional charges payable hereunder
shall be deemed to be other than a payment on account of the earliest stipulated
Monthly Basic Rent and Additional Rent, nor shall any endorsement or statement
on any check or any letter accompanying any check or payment for Basic Rent or
Additional Rent be deemed an accord and satisfaction, and Lessor may accept such
check or payment without prejudice to Lessor's right to recover the balance of
such Basic Rent and Additional Rent or pursue any other remedy provided herein
or by law.

         48. EFFECT OF WAIVERS. No failure by Lessor or Lessee to insist upon
the strict performance of any covenant, agreement, term or condition of this
Lease or to exercise any right or remedy consequent upon a breach thereof, and
no acceptance of full or partial installment of Monthly Basic Rent by Lessor
during the continuance of any such breach, shall constitute a waiver of any such
breach or of such covenant, agreement, term or condition. No consent or waiver,
express or implied, by Lessor or Lessee to or of any breach of any covenant,
condition or duty of the other party shall be construed as a consent or waiver
to or of any other breach of the same or any other covenant, condition or duty,
unless in writing signed by the waiving party.

         49. NUMBER AND GENDER. The terms "Lessor" and "Lessee" wherever used
herein shall be applicable to one or more persons, as the case may be, and the
singular shall include the plural and neuter shall include the masculine and/or
feminine, and if there be more than one, the obligations hereof shall be joint
and several.

         50. LESSOR'S RESERVED RIGHT. Lessor and Lessee acknowledge that the
Premises are in a Building which is not open to the general public. Access to
the Building is restricted to Lessor, Lessee, their agents, employees and to
their invited visitors. In the event of a labor dispute including a strike,
picketing, informational or associational activities

                                       24
<Page>

directed at Lessee or any other tenant, Lessor reserves the right
unilaterally to alter Lessee's ingress and egress to the Building or make any
other change in operating conditions to restrict pedestrian, vehicular or
delivery ingress and egress to a particular location, provided that in
connection therewith Lessee shall continue to have reasonable access to the
Premises.

         51. CORPORATE AUTHORITY. If Lessee is a corporation, Lessee
represents and warrants that this Lease and the undersigned's execution of
this Lease has been duly authorized and approved by the corporation's Board
of Directors. The undersigned officers and representatives of the corporation
executing this Lease on behalf of the corporation represent and warrant that
they are officers of the corporation with authority to execute this Lease on
behalf of the corporation, and within fifteen (15) days of execution hereof,
Lessee will provide Lessor with a corporate resolution confirming the
aforesaid.

         52. GOVERNMENT REQUIREMENTS. In the event of the imposition of
federal, state, or local governmental control, rules, regulations, or
restrictions on the use or consumption of energy or other utilities or with
respect to any other aspect of this Lease during the Term, both Lessor and
Lessee shall be bound thereby. In the event of a difference in interpretation
of any governmental control, rule, regulation or restriction between Lessor
and Lessee, the interpretation of Lessor shall prevail, and Lessor shall have
the right to enforce compliance, including the right of entry into the
Premises to effect compliance.

         53. GUARANTY. This Lease is expressly conditioned on the execution
by Long Beach Mortgage Company of the guaranty of the terms, covenants and
conditions in this Lease to be performed and observed by Lessee in the form
and substance attached hereto and made a part hereof as Exhibit F.

         54. RENEWAL OPTIONS. Lessee is hereby granted two (2) options to
renew this Lease upon the following terms and conditions:

                  (A) At the time of the exercise of each option to renew and at
         the time of the said renewal, the Lessee shall not be in monetary
         default in accordance with the terms and provisions of this Lease, and
         shall be in possession of the Premises pursuant to this Lease.

                  (B) Notice of the exercise of the first option shall be sent
         to the Lessor in writing at least nine (9) months before the expiration
         of the Term of this Lease, and notice of the exercise of the second
         option shall be sent to Lessor in writing at least nine (9) months
         before the expiration of the first renewal option, TIME HEREBY BEING
         MADE OF THE ESSENCE.

                  (C) The renewal terms shall be for the term of five (5) years
         each, the first renewal term to commence at the expiration of the Term
         of this Lease, and the second renewal term to commence at the
         expiration of the first renewal term, and all of the terms and
         conditions of this Lease, other than the Basic Rent, shall apply during
         any such renewal term.

                  (D) The Annual Basic Rent to be paid during the first renewal
         term shall not be less than that paid for the Premises during the last
         year of the original Term of the Lease (without regard to any temporary
         abatement of rent then in effect pursuant to the Lease provisions); and
         the Annual Basic Rent to be paid during the second renewal term shall
         be not less than that paid for the Premises during the last year of the
         first renewal term (without regard to any temporary abatement of rent
         then in effect pursuant to the Lease provisions). However, if the fair
         rental value per square foot at the commencement of either renewal term
         shall exceed the rent as established in the preceding sentence, the
         Lessee shall pay such fair rental value. In determining the fair rental
         value, the Lessor shall notify Lessee of the fair rental value as
         established by Lessor. Should Lessee dispute Lessor's determination,
         then the

                                      25
<Page>

         Lessee shall be free to, at the Lessee's sole cost and expense, employ
         the services of an appraiser familiar with buildings similar to the
         Building and located within the Paramus, New Jersey area comparable to
         the Building, who shall be a member of The Appraisal Institute ("MAI")
         and who shall render an appraisal. If the Lessor and the Lessee's
         appraiser cannot agree on the fair rental value, or in such case, on
         an independent appraiser acceptable to both, either party may request
         the American Arbitration Association of Somerset, New Jersey to appoint
         such independent appraiser who shall be a member of MAI familiar with
         buildings in the area of the Building and in such event the judgment of
         a majority of the two appraisers and Lessor shall be final and binding
         upon the parties. The parties shall share equally in the cost of any
         such independent appraiser. Pending resolution of the issue of fair
         rental value, the Lessee shall pay Lessor as of commencement of either
         renewal term, the Annual Basic Rent as established by Lessor, subject
         to retroactive adjustment upon final determination of this issue.

         55. RIGHT OF FIRST OFFER. Provided Lessee is not in monetary default
pursuant to any of the terms and conditions of this Lease and further
provided Lessee has not exercised its right of cancellation as set forth in
Section 56 below, Lessee shall have a right of first offer to lease
additional contiguous space on the fourth (4th) floor of the Building, in its
"AS IS" condition, which hereafter may become vacant and available
(hereinafter referred to as the "First Offer Space"), subject only to
whatever prior rights as to said space exist in connection with the leasing
of space in the Building to the tenants to whom said leases are granted.
Lessor will advise the Lessee of the availability of said space and Lessee
shall have ten (10) business days within which to respond to Lessor's offer,
TIME HEREBY BEING MADE OF THE ESSENCE. Should Lessee accept Lessor's offer,
the Basic Rent per gross rentable square foot of the First Offer Space to be
paid by Lessee shall be equal to that which Lessee is then paying for the
Premises plus the Additional Rent Lessee is then paying for the Premises
pursuant to the terms and provisions of this Lease, and the description of
Lessee's Premises, Basic Rent and Lessee's Proportionate Share shall be
adjusted to reflect the inclusion of the First Offer Space. The term for the
First Offer Space shall be coterminous with the Term for the Premises, except
that to the extent that there shall be less than five (5) years remaining on
the original Term of this Lease, Lessee shall be deemed to have automatically
extended the original Term of this Lease (for all space leased) to expire at
11:59 p.m. of the day immediately preceding the fifth (5th) anniversary of
the commencement date of the First Offer Space. Additionally, the Basic Rent
to be paid by Lessee for all space leased for any period beyond the
eighty-six (86) month anniversary of the Commencement Date shall accrue at
the rate of Twenty-six and 14/100 ($26.14) Dollars per gross rentable square
foot. Should Lessee decline Lessor's offer or fail to respond, then, and in
such event, Lessee shall lose forever any prospective rights of first offer
on fourth (4th) floor space in the Building, and Lessor shall be free to
lease said space to any other tenant upon the same terms and conditions as
offered to Lessee. Upon the exercise of this option, the cancellation option
as provided for in Section 56 below shall be declared null and void and of no
further force or effect.

         56. CANCELLATION OPTION. Subject to Sections 55 and 57 hereof and
provided Lessee is not in default, Lessee, at its option, may cancel and
terminate this Lease at the expiration of the sixty-second (62nd) or
seventy-fourth (74th) months of the Term only, provided, as a condition of
such cancellation and termination, it (a) gives twelve (12) months' written
notice to Lessor of such cancellation and termination; (b) pays to the
Lessor, together with such cancellation notice, the sum of (i) Three Hundred
Seventy-two Thousand Four Hundred Ninety-nine and 85/100 ($372,499.85)
Dollars plus the then current Additional Rent should it elect to cancel this
Lease at the expiration of the sixty-second (62nd) month of the Term, or (ii)
Two Hundred Twenty-three Thousand Four Hundred Ninety-nine and 91/100
($223,499.91) Dollars plus the then current Additional Rent should it elect
to cancel this Lease at the expiration of the seventy-fourth (74th) month of
the Term; (c) continues to perform all of the terms and conditions of the
Lease until the date of its cancellation and termination; (d) enters into a
Surrender and Acceptance Agreement effective as of the cancellation date or,
at Lessor's option, consents to the entry of a judgment immediately

                                      26
<Page>

awarding possession of the Premises to Lessor with enforcement of said
judgment stayed by its terms until the cancellation date as provided for
herein; and (e) actually vacates the Premises broom clean and in good order
and repair as required by the Lease on the surrender date free and clear of
liens, encumbrances and tenancies of any kind or nature.

         57. ADDITIONAL SPACE OPTION. Provided Lessee is not in default
pursuant to any of the terms and conditions of this Lease and subject to the
availability of the Additional Space, as hereinafter defined, Lessee shall
have the option of leasing additional space consisting of between
approximately 10,000 gross rentable square feet and 16,000 gross rentable
square feet of contiguous space on the fourth (4th) floor (hereinafter
referred to as the "Additional Space"), in its "AS IS" condition, which
Additional Space may, at Lessor's option, be split between contiguity to (i)
the Fourth Floor Space and (ii) the 6,150 Space. Not later than the
expiration of the thirty-sixth (36th) month of the Lease Term, Lessee shall
notify Lessor in writing of its desire to lease the Additional Space, which
Additional Space, if available, shall be delivered to Lessee between the
thirty-sixth (36th) and fiftieth (50th) months of the Term, as determined in
Lessor's sole discretion. Should Lessee elect to lease the Additional Space,
(i) the cancellation option as provided for in Section 56 above shall be
declared null and void and of no further force or effect, and (ii) Lessee
shall be deemed to have automatically extended the original Term of this
Lease (for all space leased) to expire at 11:59 p.m. on the day immediately
preceding the fifth (5th) anniversary of the commencement date of the
Additional Space. Upon the exercise of this option, and upon the commencement
of the term for said Additional Space, the Demised Premises and Proportionate
Share shall increase accordingly and be deemed amended to include said
Additional Space. The Basic Rent per gross rentable square foot of the
Additional Space to be paid by Lessee shall be equal to the per square foot
rate which Lessee is then paying for the 6,150 Space pursuant to the terms
and provisions of this Lease. The Basic Rent to be paid by Lessee to Lessor
for all space leased for any period extending beyond the eighty sixth (86th)
month anniversary of the Commencement Date shall accrue at the rate of
Twenty-six and 14/100 ($26.14) Dollars per gross rentable square foot per
annum.

         58. OVERTIME HVAC USE. Lessor hereby agrees, at its sole cost and
expense, to install an override switch with time recorders to permit Lessee
to operate Building HVAC zones on an overtime basis. It is understood and
agreed that Lessee shall pay to Lessor, as Additional Rent, the actual costs
incurred with respect to such overtime use. The amounts to be paid pursuant
to this Section 58 shall be deemed Additional Rent due under the Lease and
shall be payable upon demand, failing which Lessor shall have all the
remedies as permitted by this Lease and the law for the collection of rent.

         IN WITNESS WHEREOF, the parties hereto have hereunto set their hands
and seals the day and year first above written.

                                     MACK PARAMUS AFFILIATES, Lessor

                                     By:    /s/ William L. Mack
                                          --------------------------------
                                     Name:  WILLIAM L. MACK
                                          --------------------------------
                                     Title: GENERAL PARTNER
                                           -------------------------------

                                     LONG BEACH ACCEPTANCE CORP., Lessee

                                     By:   /s/ George S. Ginsberg
                                          --------------------------------
                                     Name: George S. Ginsberg
                                          --------------------------------
                                     Title: Executive Vice President & Secretary
                                          --------------------------------------

                                       27
<Page>

                                    EXHIBIT B

                              RULES AND REGULATIONS

1  OBSTRUCTION OF PASSAGEWAYS: The sidewalks, entrances, passages, courts,
elevators, vestibules, stairways, corridors and public parts of the building
shall not be obstructed or encumbered by Lessee, its visitors, agents,
servants, employees, customers, contractors, licensees or used by Lessee for
any purpose other than egress and egress to and from the premises.

2. Windows: Windows in the premises shall not be covered or obstructed by
Lessee. No bottles, parcels, or other articles shall be placed on the
windowsills, in the halls, or in any other part of the building other than
the leased premises. No article shall be thrown out of the doors or windows
of the premises.

3. PROJECTIONS FROM BUILDING: No awnings, air conditioning units, or other
fixtures shall be attached to the outside walls or the windowsills of the
building or otherwise affixed so as to project from the building, without
the prior written consent of Lessor.

4. SIGNS: No sign or lettering shall be affixed by Lessee to any part of the
outside of the premises, or any part of the inside of the premises so as to
be clearly visible from the outside of the premises, without the prior
written consent of the Lessor. However, Lessee shall have the right to place
its name on any door leading into the premises, the size, color and style
thereof to be subject to the Lessor's approval.

Lessor shall place Lessee's name on the directory in the lobby of the
building. Lessee shall not have the right to have additional names placed on
the directory without Lessor's prior written consent.

5. FLOOR COVERING: Lessee shall not lay any hard surface flooring so that the
same shall come in direct contact with the floor of the premises. If linoleum
or other similar floor covering is desired to be used, an interlining of
builder's deadening felt first shall be fixed to the floor by a paste or
other similar adhesive material being expressly prohibited. Lessee shall
reimburse Lessor for the cost of any sound insulation required in the
premises below the hard surface flooring area.

6. INTERFERENCE WITH OCCUPANTS OF BUILDING: Lessee shall not make, or permit
to be made, any unseemly or disturbing noises and shall not interfere with
other tenants or those having business with them. Lessee will keep all
mechanical apparatus in the premises free of vibration and noise which may be
transmitted beyond the limits of the leased premises.

7. LOCKS, KEYS: No additional locks or bolts of any kind shall be placed on
any of the doors or windows by Lessee nor shall any changes be made in
existing locks or the mechanism thereof. Lessee shall, on the termination of
Lessee's tenancy, deliver to Lessor, all keys to any space within the
building, either furnished to or otherwise, procured by Lessee, and in the
event of the loss of any keys furnished, Lessee shall pay to Lessor the cost
thereof. Lessee, before closing and leaving the premises, shall ensure that
all windows are closed and entrance doors locked.

8. CONTRACTORS: No contract of any kind with any supplier of towels, ice, toilet
articles, waxing, rug shampooing, venetian blind washing, furniture polishing,
lamp servicing, cleaning of electrical fixtures, removal of waste paper, rubbish
or garbage, or other like, service shall be entered into by Lessee, nor shall
any vending machine of any kind be installed in the Office Building Area without
the prior written consent of Lessor. Lessee shall not employ any person or
persons other than Lessor's janitors for the purpose of cleaning the premises,
without prior written consent of Lessor. Lessor shall not be responsible to
Lessee for any loss of property from the premises, however occurring, or for any
damage done to the effects of Lessee by such janitors or any of its employees,
or by any other person or any other cause.

<Page>

9. PROHIBITED ON PREMISES: Lessee shall not conduct, or permit any other
person to conduct, any auction upon the premises, manufacture or store goods,
wares or merchandise upon the premises, without the prior written approval of
Lessor, except the storage of usual supplies and inventory to be used by
Lessee in the conduct of its business permit the premises to be used for
gambling; make any unusual noises in the building, permit to be played any
musical instrument on the premises, permit to be played any radio,
television, recorded or wired music in such a loud manner as to disturb or
annoy other tenants, or permit any unusual odors to be produced upon the
premises. Lessee shall not permit any portion of the premises to be occupied
as an office for a public stenographer or typewriter, or for the storage,
manufacture, or sale of intoxicating beverages, narcotics, tobacco in any
form, or as barber or manicure shop. Canvassing, soliciting and peddling in
the Office Building and the Office Building Area are prohibited, and Lessee
shall cooperate to prevent the same. No bicycles, vehicles or animals of any
kind shall be brought into or kept in or about the premises.

10. MECHANICAL, PLUMBING, ELECTRIC, LIFE SAFETY OR TELEPHONE WORK: Lessee
shall at no time perform any alteration, additions, or repairs to the air
conditioning, heating, ventilating, plumbing, fire protection, or electrical
systems servicing the premises or the building, without obtaining the prior
written consent of Lessor. Lessor reserves the right 'through the use of its
own contractors, to perform all work on these above referenced systems
through the use of Lessor's approved contractors. All telephone work shall be
performed by Lessee in accordance with all applicable building codes and
regulations and shall be installed so as not to interfere with the operation
of any fire dampers, or fire separation systems. All penetrations shall be
sealed to maintain the integrity of the fire separation walls. Lessor shall
backcharge Lessee for all restoration work required that is not performed by
Lessee as outlined above. The location of all plumbing, electrical, HVAC and
telephone work which is to be installed shall be subject to the Lessor's
approval which shall include a review of the number of appliances and their
location. Plumbing facilities shall not be used for any purpose other than
those for which they were constructed; and no sweepings, rubbish, ashes,
newspaper or other substances of any kind shall be thrown into them. Waste
and excessive or unusual amounts of electricity or water is prohibited. When
electric wiring of any kind is introduced, it must be connected as directed
by Lessor, and no stringing or cutting of wires will be allowed, except by
prior written consent of Lessor, and shall be done by contractors approved by
Lessor. The number and locations of telephones, telegraph instruments,
electrical appliances, call boxes, etc., shall be subject to Lessor's
approval.

11. MOVEMENT OF FURNITURE, FREIGHT, OR BULKY MATTER: The carrying in or out
of safes, freight, furniture, or bulky matter of any description must take
place during such hours as Lessor may from time to time reasonably determine
and only after advance notice to the superintendent of the building. The
persons employed by Lessee for such work must be reasonably acceptable to the
Lessor. Lessee may, subject to Lessor's prior approval, move freight,
furniture, bulky matter, and other material into or out of the premises on
Saturdays between the hours of 9:00 a.m. and 3:00 p.m., provided Lessee pays
additional costs, if any, incurred by Lessor for elevator operators or
security guards, and for any other expenses occasioned by such activity of
Lessee. If, at least three days prior to such activity, Lessor requests that
Lessee deposit with Lessor, as security for Lessee's obligation to pay such
additional cost, a sum of which Lessor reasonably estimates to be the amount
of such additional cost, the Lessee shall deposit such sum with Lessor as
security for such cost. There shall not be used in the Office Building or
premises, either by Lessee or by others in the delivery or receipt of
merchandise, any hand trucks except those equipped with rubber tires and side
guards, and no hand trucks will be allowed in the elevators without the
consent of the superintendent of the building. Lessee shall be responsible
for the cost of removal of all boxes, garbage and debris caused by the
movement of the furniture, freight or delivery of materials. Lessee shall
notify the superintendent of the building at least 24

<Page>

hours in advance of any anticipated deliveries which will require the removal
of debris.

12. SAFES AND OTHER HEAVY EQUIPMENT: Lessor reserves the right to prescribe
the maximum weight and position of all safes and other heavy equipment so
as to distribute properly the weight thereof and to prevent any unsafe
condition from arising. The cost of additional reinforcing, if required,
shall be the responsibility of the Lessee.

13. ADVERTISING: Lessor shall have the right to prohibit any advertising by
Lessee which in Lessor's reasonable opinion tends to impair the reputation of
the Office Building or its desirability as a building for offices, and upon
written notice from Lessor, Lessee shall refrain from or discontinue such
advertising.

14. NON-OBSERVANCE OR VIOLATION OF RULES BY TENANTS: Lessor shall not be
liable to Lessee for any violation or non-observance of the rules and
regulations by any other Lessee, its servants, employees, agents, visitors,
invitees, sublessees, or licensees, nor is Lessor obligated to enforce the
rules and regulations or the terms, covenants, or conditions in any
other lease against any other Lessee.

15. AFTER HOURS USE: Lessor reserves the right to exclude from the building
between the hours of 6:00 p.m. and 8:00 a.m., on Monday to Friday inclusive,
and between the hours of 1:00 p.m., on Saturday and 8:00 a.m., on the
following Monday, as well as legal holidays any visitor not authorized by
tenant to have access. Each Lessee shall be responsible for any after-hours
utilization of the premises by its personnel and visitor not authorized by
tenant to have access. Each Lessee shall be responsible for any after-hours
utilization of the premises by its personnel and visitors an shall be liable
to the Lessor for the acts of such persons.

16. PARKING: Lessee and its employees shall park their cars only in those
portions of the parking area not designated for use by other tenants or
visitors.

17. Lessor hereby reserves to itself any and all rights not granted to Lessee
hereunder, including, but not limited to, the following rights which are
reserved to a Lessor for its purposed in operating the Office Building:

     (a)  the exclusive right to the use of the name of the Office Building
          for all purposes, except that Lessee may use the name as its business
          address and for no other purposes;

     (b)  the right to change the name or address of the office Building,
          without incurring any liability to Lessee for doing so;

     (c)  the right to install and maintain a sign on the exterior of the Office
          Building;

     (d)  the exclusive right to use or dispose of the use of the roof of the
          Office Building;

     (e)  the right to limit the space on the directory of the Office Building
          to be allotted to Lessee;

     (f)  the right to grant to anyone the right to conduct any particular
          business or undertaking in the Office Building.

<Page>

                                   EXHIBIT 'C'

                           WORK TO BE DONE BY LANDLORD

                                 MACK CENTRE II

                               PARAMUS, NEW JERSEY

                        LONG BEACH ACCEPTANCE CORPORATION

                                     Tenant

                                JANUARY 15, 1997
                    REVISED ON PAGES NOTED: FEBRUARY 3, 1997
                    REVISED ON PAGES NOTED: FEBRUARY 5, 1997
                      REVISED ON PAGES NOTED: MARCH 4, 1997

<Page>

LONG BEACH ACCEPTANCE CORPORATION
MACK CENTRE II, PARAMUS, N.J.                                   JANUARY 15, 1997

                                   EXHIBIT 'C'

1.00     GENERAL CONDITIONS

1.01     Landlord agrees that, at its expense, prior to commencement of this
         Lease, it will do the following Building Standard work in the Demised
         Premises.

1.02     Landlord shall use only new and first-class materials in the
         performance of new work and will provide Tenant with samples before
         installation.

1.03     Building Standards - those materials and/or details shown on final
         approved set of working drawings.

1.04     Landlord will provide a complete space to meet all State and local
         codes and requirements.

1.05     Landlord will obtain and pay for all permits and inspections required
         for occupancy.

1.06     Landlord will furnish all labor, material and equipment required to
         complete the work described on drawings and in the specifications and
         perform all demolition as may be required.

1.07     Tenant may in Tenant's plans substitute different materials, equipment
         (except for Building Standard sun shading at the exterior windows) and
         lighting fixtures for installation in the Demised Premises for those
         specified as Building Standard. In such event, Landlord shall furnish
         and install in the Demised Premises such material, equipment and
         fixtures so substituted by Tenant as part of Landlord's Work, provided
         that all such material, equipment and fixtures shall be of a quality at
         least equal to the quality of similar items specified as Building
         Standard; and provided further that if the cost to Landlord of
         furnishing and installing such substituted material, equipment and
         fixtures shall exceed the cost for the relevant material, equipment and
         fixtures specified as Building Standard, the amount of such excess
         shall be paid by Tenant to Landlord upon presentation of a statement,
         bill or invoice. The cost of any substituted material, equipment or
         fixtures shall be determined by Landlord and agreed to by Tenant, prior
         to any work being done in the Demised Premises in connection with such
         substituted items. The Landlord will submit a proposal for work
         authorization to Tenant for its approval.

                                     1 of 12

<Page>

LONG BEACH ACCEPTANCE CORPORATION
MACK CENTRE II, PARAMUS, N.J.                                   JANUARY 15, 1997
                                                      REVISED:  FEBRUARY 3, 1997

                                   EXHIBIT 'C'
                                    (Cont'd)

1.07     (Cont'd)

         Such proposal will contain a budget cost of the substituted item as
         described by Landlord, plus a fee as hereinafter described. If Tenant
         shall request Landlord to omit any item of material, equipment or
         fixtures specified as Building Standard which Landlord has not
         therefore installed and the omission thereof will not in the judgment
         of Landlord delay completion of any of the other Landlord's work,
         Landlord shall not install, and shall be under no further obligation to
         install such item, but Tenant shall not be entitled to a credit with
         respect to any Building Standard material, equipment or fixtures
         omitted. When Landlord or its subcontractors shall perform work with
         respect to any substituted item as aforesaid, the cost to Tenant for a
         special item substituted for said Building Standard material,
         Landlord's equipment or fixtures, if more expensive than such Building
         Standard material, shall be Landlord's cost of the special item minus
         Landlord's cost of the Building Standard item, plus (1) a sum equal to
         the difference between two such costs multiplied by a fee of ten (10%)
         percent for office overhead, plus five (5%) for profit.

1.08     Prior to the Commencement Date of this Lease, contractors and
         subcontractors performing Tenant's work shall be of Landlord's choice
         except for Tenant's telephone company. Tenant's own work may be done
         prior to the Commencement Date of this Lease, provided that the work
         being done by the Landlord at the Building or in the Demised Premises
         has progressed sufficiently for Tenant to commence its work without
         unduly interfering with the work of the Landlord and Landlord shall
         give at least fifteen (15) days prior to the Lease Commencement Date,
         access to Tenant and its contractor and subcontractors (as permitted)
         during normal working hours to enable Tenant to make Tenant's
         installations.* In connection with Tenant's access and entry into the
         Demised Premises prior to the commencement of the term to make Tenant's
         installations, Tenant shall receive, without charge, water, heat,
         ventilation or cooling during normal working hours, but only to the
         extent that such services are being supplied to Landlord's contractors
         and workmen at the Demised Premises at the time.

                                     2 of 12

<Page>

LONG BEACH ACCEPTANCE CORPORATION
MACK CENTRE II, PARAMUS, N.J.                                   JANUARY 15, 1997
                                                      REVISED:  FEBRUARY 3, 1997
                                   EXHIBIT 'C'
                                    (Cont'd)

1.08     (Cont'd)

         Tenant shall pay for hoist and rubbish removal service in connection
         with its own work. It is understood and agreed that Tenant's access and
         entry prior to the commencement of the Lease Term to make its
         installations is conditioned upon Tenant's Union workmen and Union
         mechanics working in harmony and not interfering with the labor
         employed by Landlord, Landlord's mechanics or contractors or by any
         other Tenant or its contractors. If, at any time, such entry shall
         cause disharmony or interference, then, Tenant's right to such access
         and entry shall be withdrawn by Landlord immediately.

         Workmen's Compensation and Public Liability Insurance and Property
         Damage Insurance, all in amounts and with companies and on forms
         satisfactory to Landlord shall be provided and at all times maintained
         by Tenant's contractors engaged in the performance of the work,
         certificates for such insurance shall be furnished to the Landlord.

     *   The term "Tenant's own work" shall be limited to Tenant's telephone
         installation, Tenant's installation of any low and/or modular work
         station partitioning and Tenant's computer equipment installations,
         however, all such work shall be performed by Union workmen.

1.09     Provided Landlord has obtained necessary Certificates of Occupancy,
         Landlord shall permit "early access" for a limited number of Tenant's
         employees for start-up purposes prior to Lease Commencement. Such
         access and entry shall be deemed to be under all of the terms,
         covenants, provisions and conditions of the Lease except as to the
         covenant to pay rent. Landlord shall not be liable in any way for
         injury, loss or damage which may occur to any Tenant's decorations or
         installments so made prior to the commencement of the term of the
         Lease, the same being solely at Tenant's risk.

1.10     Landlord shall perform all demolition work as required to suit Tenant's
         layout including the termination and capping of existing electrical
         lines, plumbing, etc.

                                    3 of 12

<Page>

LONG BEACH ACCEPTANCE CORPORATION
MACK CENTRE II, PARAMUS, N.J.                                   JANUARY 15, 1997

                                   EXHIBIT 'C'
                                    (Cont'd)

2.00     DRAWINGS

2.01     Tenant's architect, at Landlord's expense pursuant to a separate
         agreement, shall provide complete architectural drawings for Landlord's
         use in constructing the tenant improvements.

2.02     Notwithstanding Section 2.01 hereof to the contrary, in the event
         Tenant elects to have Landlord's architect prepare the architectural
         drawings, then in such event Landlord's architect shall prepare such
         drawings at no expense to Tenant. In connection with the preparation of
         such drawings, Tenant shall furnish to Landlord the following:

               a.   preliminary floor (space) plans with designation of
                    partition types; etc.

               b.   location of special lighting and power receptacles.

               c.   millwork requirements.

               d.   location and extent of special ceiling requirements, if any.

               e.   location and extent of special equipment including power and
                    heat loads; etc.

2.03     Regardless of Tenant's election pursuant to Sections 2.01 and 2.02
         above, Landlord, at its expense, shall arrange for the preparation of
         mechanical and electrical drawings for the tenant improvement work.

         Tenant shall have ten (10) days from receipt of said drawings to
         approve same, however, such approval shall be limited to a verification
         that the drawings conform with the specifications set forth in this
         Exhibit 'C'.

3.00     DIRECTORIES

3.01     Provide Tenant identification at Building directories.

                                     4 of 12

<Page>

LONG BEACH ACCEPTANCE CORPORATION
MACK CENTRE II, PARAMUS, N.J.                                   JANUARY 15, 1997
                                                      REVISED:  FEBRUARY 3, 1997

                                   EXHIBIT 'C'
                                    (Cont'd)

4.00     PARTITIONS

4.01     A partition allowance shall be provided as is necessary to conform to
         Tenant's layout.

4.02     New partitions to be 1-5/8" x 3-5/8" metal studs with 5/8" gypsum
         board both sides. Partitions including studs and drywall shall extend
         to the underside of finished ceiling, except where full height
         partitions are specified.

4.03     Partitions shall have full thick sound attenuation insulation between
         studs where specified.

4.04     Partitions terminating in the building exterior wall, shall meet either
         a mullion or a column without interfering with access to the peripheral
         enclosure.

5.00     DOORS AND BUCKS

5.01     All new door bucks to be 16 gauge hollow metal.

5.02     All new doors to be 7'-0" x 1-3/4" wood solid core, oak veneer, stain
         grade, in widths as shown except for entry door to each "suite", which
         shall be full height (8'-10") black anodized aluminum and tempered
         glass "narrow stile" doors. Secondary egress doors shall be 8'-10"
         solid core wood where fronting on common corridors.

6.00     GLAZING

6.01     Glazing in windows and doors shall be as required by local, State and
         Federal regulations and to meet design requirements.

6.02     Landlord shall furnish and install 2-0" wide glass sidelites at offices
         where specified.

                                    5 of 12

<Page>

LONG BEACH ACCEPTANCE CORPORATION
MACK CENTRE II, PARAMUS, N.J.                                   JANUARY 15, 1997
                                                      REVISED:  FEBRUARY 3, 1997
                                                      REVISED:     MARCH 4, 1997

                                   EXHIBIT 'C'
                                    (Cont'd)

7.00     ROUGH AND FINISHED HARDWARE

7.01     Provide rough and finished hardware commensurate with office use
         including lock sets. Provide latch sets on individual office doors.

7.02     Lessor shall supply and install all rough and finish hardware.

7.03     Finish hardware to be Sargent or equal, grand-master keyed to
         Landlord's requirements.

7.04     All doors to be located, oriented and be equipped with hardware in
         accordance with local codes.

7.05     Landlord shall furnish and install a card key access system to
         approximately twelve (12) doors.

8.00     ACOUSTICAL CEILINGS

8.01     Existing lay-in acoustic tile ceiling grid shall remain in place to the
         extent feasible. All existing ceiling tile shall be replaced with new
         Armstrong Second Look II, rabbeted edge tile, and all existing grid to
         remain shall be re-painted.

8.02     To the extent required (as shown on the architectural drawings), new
         ceiling construction (grid and tile) of a type to match existing shall
         be provided.

9.00     CARPETING

9.01     Landlord shall remove existing floor coverings and furnish and install
         new floor coverings and base as selected by Tenant from Landlord's
         samples.

9.02     Up-graded carpet shall be provided in four (4) executive offices; one
         (1) law office; board room; conference rooms and Reception areas.

                                     6 of 12

<Page>

LONG BEACH ACCEPTANCE CORPORATION
MACK CENTRE II, PARAMUS, N.J.                                   JANUARY 15, 1997

                                   EXHIBIT 'C'
                                    (Cont'd)

10.00    WALL FINISHES

10.01    All interior wall finishes shall be paint except for upgraded wall
         coverings in four (4) executive offices; one (1) law office, board
         room, conference rooms and Reception areas.

10.02    All exposed interior ferrous metal surfaces including miscellaneous
         metal, piping, duct work and mechanical equipment shall receive two
         coats of enamel paint over one prime coat.

10.03    Metal doors, door bucks and other metal surfaces not having baked or
         enamel finish shall receive two coats of enamel paint over one coat of
         primer.

10.04    Paint manufacturers to be utilized are as follows: Glidden, or approved
         equal.

10.05    All painted graphics will be an extra.

11.00    WINDOW COVERING

11.01    Furnish and install Building Standard blinds, one color as established
         by Landlord on all exterior windows. Notwithstanding the foregoing,
         existing vertical blinds shall remain in place to the extent feasible,
         except that same shall be patched, repaired and cleaned as required.

12.00    FIRE EXTINGUISHERS

12.01    Provide fire extinguishers in general areas to meet all prevailing
         codes.

13.00    HVAC

13.01    A year-round variable volume air conditioning system designed to
         maintain a temperature of 78DEG.F, plus or minus 2DEG.F and a maximum
         relative humidity of 50% when outside conditions are 95DEG.F, DB;
         76DEG.F WB. shall be furnished and installed.

                                     7 of 12

<Page>

LONG BEACH ACCEPTANCE CORPORATION
MACK CENTRE II, PARAMUS, N.J.                                   JANUARY 15, 1997
                                                      REVISED:  FEBRUARY 3, 1997
                                                        REVISED:   MARCH 4, 1997

                                   EXHIBIT 'C'
                                    (Cont'd)

13.02    All areas will be zoned for each orientation or for interior spaces as
         designated so that the above mentioned space temperatures can be
         maintained providing, however, that the occupancy shall not exceed one
         (1) occupant per 140 gross square feet.

13.03    The system will be under time clock control set to start at 8:00 a.m.
         and shut down at 6:00 p.m. on normal business days and 8:00 a.m. to
         1:00 p.m. on Saturdays (holidays excluded), except to the extent set
         forth to the contrary in the Lease.

13.04    All heating will be provided from perimeter electric baseboard
         radiation with the heat output controlled from outside air temperature
         to maintain the inside conditions.

13.05    Landlord shall furnish and install a maximum of two (2) plenum
         discharge exhaust fans in locations specified by Tenant.

13.06    Any special or separate HVAC Systems required by Tenant, shall be
         furnished and installed by Landlord, at Tenant's sole cost and expense.
         Notwithstanding the foregoing sentence to the contrary, Landlord
         shall furnish and install two (2) - three (3) ton ceiling mounted
         supplemental air conditioning unit in Tenant's LAN Room. All utility
         costs associated with the operation of said systems shall be the
         responsibility of the Tenant.

14.00    ELECTRIC SPECIFICATIONS

         The electrical service shall provide for 5 watts per Square Foot, 3
         watts PSF for lighting and 2 watts PSF for power loads. With the
         exception of the electrical consumption described in Section 14.01 'E'
         below, the power and lighting described in Sections 14.01 and 14.02
         hereof, shall constitute Standard Building Electric pursuant to the
         Lease.

14.01    POWER

          A.   Duplex 110 volt wall receptacles shall be provided in accordance
               with Tenant's requirements. Receptacles to be located in drywall
               partitions.

                                     8 of 12

<Page>

LONG BEACH ACCEPTANCE CORPORATION
MACK CENTRE II, PARAMUS, N.J.                                   JANUARY 15, 1997
                                                      REVISED:  FEBRUARY 3, 1997
                                                      REVISED:  FEBRUARY 5, 1997

                                   EXHIBIT 'C'
                                    (Cont'd)

14.01    (Cont'd.)

         Landlord shall re-use existing receptacles if possible. Tenant shall
         not be permitted to place duplex receptacles (or Telco or data outlets)
         at exterior building walls. Receptacles shall be standard 120 volt with
         three (3) duplex receptacles maximum per circuit.

         B.       Landlord shall furnish and install separate circuits for
                  Tenant's normal office equipment as specified by Tenant, 110
                  volt, 20 amp. maximum.

         C.       Landlord shall furnish 110 volt electrical service to Tenant's
                  systems furniture as such furniture is shown on the
                  architectural drawings. All costs in connection with telephone
                  and data wiring shall be the sole and complete responsibility
                  of Tenant.

         D.       All existing floor electrical and telephone outlets shall be
                  terminated and capped.

         E.       Landlord shall furnish and install the following special power
                  outlets:

                         - Three (3) 30 amp, 208 volt dedicated power lines,
                           each on a separate breaker.

                         - Fourteen (14) 20 amp, 120 volt dedicated power
                           lines, each on a separate breaker.

                         - Five (5) 30 amp, 120 volt dedicated power lines,
                           each on a separate breaker.

                         - Twenty (20) 20 amp, 120 volt dedicated power lines,
                           each on a separate breaker, for Laser printer and
                           copiers.

                  Landlord shall either meter or survey the electrical
                  consumption from the above power lines and charge Tenant for
                  such consumption based upon the Building utility rates.

                                     9 of 12
<Page>

LONG BEACH ACCEPTANCE CORPORATION
MACK CENTRE II, PARAMUS, N.J.                                   JANUARY 15, 1997
                                                      REVISED:  FEBRUARY 3, 1997
                                                      REVISED:  FEBRUARY 5, 1997
                                   EXHIBIT 'C'
                                    (Cont'd)

14.01    (Cont'd.)

         F.       To the extent Landlord is furnishing and installing power
                  outlets in the Tenant's LAN Room, each dedicated power line
                  (and/or circuit) shall terminate in an electrical panel within
                  the LAN Room.

14.02    LIGHTING

         A.       Landlord shall furnish new 2'-0" x 4'-0" 3 tube deep cell
                  parabolic, recessed fluorescent lighting fixtures to
                  accommodate Tenant's layout. The lighting layout shall be
                  designed to provide approximately 70 FC, average maintained.
                  Light fixture switching shall provide a minimum of one (1)
                  switch for each room or area, or as shown on final
                  Architectural Drawings.

         B.       Landlord shall furnish and install up-graded lighting in four
                  (4) executive offices; one (1) law office, board room,
                  conference rooms and Reception areas. Such lighting shall
                  include parabolic or parawedge recessed fluorescent troffers
                  and incandescent (or incandescent/fluorescent) hi-hats.

14.03    Exit and emergency lighting to be provided as per code.

15.00    TELEPHONE

15.01    All telephone work and wiring in partitions, floors and ceilings to be
         done by the telephone company and will be the responsibility of the
         Tenant. Landlord will coordinate work with the other trades as
         required. Completion or non-completion of the telephone work will not
         delay the Tenant's acceptance of the Demised Space or the payment of
         rent. Tenant shall be responsible to advise its telephone company that
         the space above the hung ceiling is a return air plenum and the use of
         teflon sheathed wiring shall be required therein.

                                    10 of 12

<Page>

LONG BEACH ACCEPTANCE CORPORATION
MACK CENTRE II, PARAMUS, N.J.                                   JANUARY 15, 1997
                                                      REVISED:  FEBRUARY 3, 1997
                                                      REVISED:  FEBRUARY 5, 1997
                                  EXHIBIT 'C'
                                    (Cont'd)

16.00    FLOOR LOADS

         Floor loadings shall be for normal office usage wherein floor design
         loads of 100 PSF uniform loading (inclusive of 20 PSF partition loads)
         shall not be exceeded. In the event that Tenant proposes floor loadings
         within the Demised Premises in excess of the foregoing for any of its
         equipment, Tenant shall be required to notify Landlord of such intended
         floor loadings for Landlord's approval.

17.00    EXCLUSIONS

17.01    The following items and fixtures are N.I.C. and shall be furnished by
         Tenant if required.

         A.       All furniture units including files.

         B.       All special equipment related to the Computer Rooms and the
                  like, (i.e. raised floors, special power equipment, special
                  air conditioning, special fire suppression systems other than
                  Building Standard automatic sprinklers for ordinary/light
                  hazard occupancy, and similar specialties).

         C.       All modular and bankscreen type partitioning and systems
                  furniture.

18.00    SPECIALTY WORK

18.01    Landlord shall furnish and install plywood backboards and wood blocking
         where required for Tenant's telephone equipment.

18.02    Landlord shall construct Tenant's lunchroom and Coffee Stations which
         shall include:

                  - Sink with hot and cold water
                  - Formica lower and upper cabinets
                  - Micro-wave oven(s)
                  - Refrigerator(s)

                                    11 of 12

<Page>

LONG BEACH ACCEPTANCE CORPORATION
MACK CENTRE II, PARAMUS, N.J.                                   JANUARY 15, 1997
                                                      REVISED:  FEBRUARY 3, 1997
                                                      REVISED:  FEBRUARY 5, 1997
                                                      REVISED:     MARCH 4, 1997

                                   EXHIBIT 'C'
                                    (Cont'd)

18.03    Intentionally Omitted.

18.04    Landlord shall furnish and install structural steel support for two (2)
         - 1800 pound UPS Systems (UPS by Tenant) in LAN Room.

18.05    Landlord shall furnish and install a six (6") inch raised floor at LAN
         Room, with ramp placed outside of LAN Room.

19.00    ALLOWANCES

19.01    Notwithstanding anything to the contrary contained in this Exhibit
         'C', it is the intention of Landlord to provide a turnkey fit-up as
         generally described in the foregoing Sections 1-18, and the preliminary
         space plans dated January 14, 1997 prepared by Wells Associates.
         Tenant agrees to reimburse Landlord the sum of $40,933.00 in
         consideration of Landlord undertaking certain additional work on
         Tenant's behalf with respect to Tenant's LAN Room and card access
         system. Landlord agrees to amortize said sum over the initial*Lease
         Term together with interest at ten (10%) percent per annum, said sum
         to be payable in equal monthly installments applicable first to
         interest and the balance to principal. In the event Tenant elects to
         have Landlord perform any additional work in the Demised Premises on
         its behalf, Tenant shall reimburse Landlord such costs in cash (or
         credit against any allowances due Tenant, at Tenant's option).

19.02    Landlord shall provide Tenant with a moving allowance in the amount
         of $54,890.25. Said allowance shall be paid to Tenant in cash (subject
         to the provisions of 19.01 above, if applicable) upon Tenant's
         occupancy of the Demised Premises and the commencement of the Lease.

         *- five (5) years of the

                                    12 of 12

<Page>
                                    EXHIBIT D

                        GENERAL CLEANING SPECIFICATION

NIGHTLY

Between the hours of 6:00 p.m. and 6:00 a.m., Monday through Friday (legal
holidays excepted).

                                PUBLIC AREAS

                         LOBBIES, CORRIDORS & VESTIBULES

<Table>
<Caption>
                                             SERVICE                                                INTERVAL
                                             -------                                                --------
<S>                                     <C>                                                         <C>
Glass Doors and                         Remove spots                                                As Necessary
Partitions

Flooring (hard surface)                 Damp mop                                                    Twice Weekly
                                        Damp mop and spray buff                                     Twice Weekly
                                        Strip and refinish                                          As Necessary

Carpet                                  Vacuum                                                      Nightly
                                        Spot Cleaned                                                As Necessary
                                        Shampoo                                                     Quarterly

Light Fixtures on                       Dust and/or wash                                            As Necessary
Multiple Tenancy Public
Corridors

ENTRANCE LOBBIES

Flooring

Stone                                   Wash                                                        Nightly

Marble, V/A Tile                        Damp mop                                                    Twice Weekly

Quarry, Tile                            Damp mop and spray buff                                     Twice Weekly
                                        Strip and refinish

Carpet                                  Vacuum                                                      Nightly
                                        Spot clean                                                  As Necessary
                                        Shampoo                                                     As Necessary

Walls, Light, Globes,                   Clean                                                       As Necessary
and Fixtures

ELEVATORS

Rugs                                    Vacuum and spot clean                                       As Necessary
                                        Shampoo                                                     Monthly

Walls, Ceilings,                        Damp wipe                                                   Nightly
Paneled Surfaces

Metal Finishes,                         Clean                                                       Nightly
Saddles                                 Clean                                                       Nightly

Light Fixtures:
Reflectors                              Damp wipe                                                   As Necessary
Diffusers                               Dust/Vacuum                                                 As Necessary

TENANT AREAS

Carpet                                  Vacuum all carpets                                          Nightly

Resilient Flooring                      Dust mop, using chemically treated dust                     Nightly
                                        system-spot clean spills.

Doors and Frames                        Remove all finger marks and smudges from                    As Necessary
                                        doors, partitions, woodwork, window
                                        ledges, window mullions and light
                                        switches.
<Page>

Exhibit D

                                                 Service                                              Interval
                                                 -------                                              --------

Door Saddles (Metal)                     Polish                                                       Monthly

Glass Tops                               Damp wipe                                                    Nightly

Bookcases, Filing                        Dust                                                         As Necessary
Cabinets, Chairs,
Furniture, Shelves, and
Other Dust Collecting
Surfaces

Window Sills/Ledges                      Dust                                                         As Necessary

Ash Trays                                Empty and damp wipe                                          Nightly

Smoking Stands                           Remove refuse, damp wipe, dry polish                         Nightly
                                         exterior
                                         Replace sand                                                 As Needed

Drinking Fountains                       Damp wipe, clean and polish with                             Nightly
                                         disinfectant and water

Umbrella Racks                           Dust                                                         Nightly

Waste Paper Baskets                      Empty and damp wipe                                          Nightly

Partition Glass and                      Spot clean                                                   Nightly
Glass Doors

Ceiling Air Distribution,                Vacuum clean                                                 Monthly
Return Air Grills &
Surrounding Areas

Fabric Partitions                        Brush                                                        Monthly

Light Fixtures:                          Damp Wipe                                                    Annually
Lenses Interior &
Exterior

Fire Extinguisher                        Dust and wipe glass                                          As Necessary
Cabinets

Refuse                                   Remove to designated area dumpster or                        Nightly
                                         compactor

High Dusting                             Pictures, frames, charts, and similar                        Monthly
                                         wall hangings not reached in nightly
                                         cleaning, exterior of light fixtures,
                                         overhead pipes venetian blinds, window
                                         frames, files, shelves, book cases,
                                         and vertical surfaces - such as
                                         partitions, ventilating louvers, etc.
                                         not reached in nightly cleaning.

                         TOILETS, LOCKER ROOMS, SHOWER ROOMS AND POWDER ROOMS

Tile Floor                                Sweep                                                       Nightly
                                          Wash with germicidal detergent                              Nightly
                                          Machine scrub                                               Monthly

Metal Partitions, Doors,                  Spot Clean                                                  As Necessary
Horizontal Surfaces                       Damp wash with germicidal detergent                         Monthly
                                          and water

Tile Walls                                Spot clean                                                 As Necessary
                                          Wash with germicidal solution in water                     Monthly

Basins, Toilet Bowls,                     Wash with germicidal solution.                             Nightly
Urinals an Toilet Seats

<Page>

Exhibit D

                                           Service                                                     Interval
                                           -------                                                     --------

Mirrors and Frames                         Wash and polish, mirrors,                                   Nightly
                                           powder shelves, bright work,
                                           including flushometers, piping, and
                                           toilet seat hinges.

Soap Dispensers                            Refill                                                       As Required

Sanitary Product                           Refill                                                       As Required
Dispensers                                 Handsoap, toilet tissues, hand towels

Wastepaper Baskets,                        Empty                                                        Nightly
Towel, and Sanitary
Disposal Receptacles
                                           Damp wash with germicidal solution                           Weekly

Light Fixture: Lenses                      Wash                                                         Semi-Annually
</Table>

                        CAFETERIA, VENDING AREAS, LUNCH ROOMS

Basic cleaning specifications shall apply to all walls, floors and ceilings.

In buildings where there are kitchens and serving areas, the contractor shall
be responsible only for the areas in front of the serving counters.

WINDOWS

All perimeter windows including atriums will be washed inside and outside four
(4) times per year.

All exterior metal will be wiped clean and polished, if necessary, at the same
time windows are washed.

SNOW REMOVAL AND LANDSCAPING

Keep sidewalks and parking areas clean and free of snow and rubbish.
Remove snow during day of ingress and egress, if necessary.
Keep lawn and landscaping properly maintained, if applicable.

SERVICES EXCLUDED

The following services are not included for building standard cleaning but can
be provided at additional cost.

Additional service by way of illustration and not limitation:

1.       Carpet shampooing
2.       Waxing of hard surface floors
3.       Furniture polishing
4.       Furniture waxing
5.       Cleaning tenant private toilets, including supplies, etc.
6.       All cleaning pertaining to the computer room shall be charged directly
         to the tenant as an extra. Computer room is defined as space with a
         "Raised" or "Floating" floor.

<Page>
                                                                    EXHIBIT "E"

                                HOLIDAY SCHEDULE
                                ----------------

                                NEW YEARS DAY

                                WASHINGTON'S BIRTHDAY

                                GOOD FRIDAY

                                MEMORIAL DAY

                                INDEPENDENCE DAY

                                LABOR DAY

                                ELECTION DAY (PRESIDENTIAL ONLY)

                                THANKSGIVING DAY

                                CHRISTMAS DAY

<Page>

                                  EXHIBIT F

                              GUARANTY OF LEASE

     WHEREAS, LONG BEACH ACCEPTANCE CORP., with offices at 690 Kinderkamack
Road, Oradell, New Jersey 07649 (hereinafter referred to as "Lessee") is
desirous of entering into the lease hereinafter mentioned; and

     WHEREAS, LONG BEACH MORTGAGE COMPANY, with offices at 1100 Town and
Country Road, Orange, California 92668 (hereinafter referred to as
"Guarantor") has requested MACK PARAMUS AFFILIATES, whose address is 370 West
Passaic Street, Rochelle Park, New Jersey 07662 (hereinafter referred to as
"Lessor") to enter into a lease with the Lessee for seven (7) years and two
(2) months in the building known as Mack Centre II located at One Mack Center
Drive, Paramus, New Jersey (hereinafter referred to as "Lease"); and

     WHEREAS, the Lessor has refused to enter into the said Lease unless the
Guarantor guarantees said Lease in the manner hereinafter set forth.

     NOW, THEREFORE, to induce the Lessor to enter into said Lease, which
Lease is dated this day and is being executed simultaneously herewith, the
Guarantor hereby agrees as follows:

     1.     (a)  The Guarantor unconditionally guarantees to the Lessor and
the successors and assigns of the Lessor, the full and punctual performance
and observance by the Lessee of all of the terms, covenants and conditions in
said Lease contained on Lessee's part to be kept, performed or observed.

            (b)  If, at any time, default shall be made by the Lessee in the
performance or observance of any of the terms, covenants or conditions in
said Lease contained on the Lessee's part to be kept, performed or observed,
the Guarantor will keep, perform and observe the same, as the case may be, in
place and stead of the Lessee.

            (c)  The liability of the Guarantor hereunder shall be
enforceable against the Guarantor without the necessity for any suit or
proceedings on the Lessor's part of any kind or nature whatsoever against the
Lessee.

     2.     Any act of the Lessor, or the successors or assigns of the
Lessor, consisting of a waiver of any of the terms or conditions of said
Lease, provided such waiver does not materially increase the obligations of
Lessee or Guarantor, or materially increase the obligations of Lessee or
Guarantor, or the giving of any consent to any manner or thing relating to
said Lease, or the granting of any indulgences or extensions of time, to the
Lessee, may be done without notice to the Guarantor and without releasing the
obligations of the guarantor hereunder except with respect to such waivers.

     3.     The obligations of the Guarantor hereunder shall not be released
by Lessor's receipt, application or release of security given for the
performance and observance of covenants and conditions in said Lease
contained on the Lessee's part to be performed or observed; nor by any
modification of such Lease, but in the case of any such modification, the
liability of the guarantor shall be deemed modified in accordance with the
terms of any such modification of the Lease.

     4.     The liability of the Guarantor hereunder shall in no way be affected
by (a) the release or discharge of the Lessee in any creditors' receivership,
bankruptcy or other proceedings; (b) the impairment, limitation or modification
of the liability of the Lessee or the estate of the Lessee in bankruptcy, or of
any remedy for the enforcement of the Lessee's said liability under the Lease,
resulting from the operation of any present or future provision of the
Bankruptcy Code or other statute or from the

                                       1

<Page>

decision in any court; (c) the rejection or disaffirmance of the Lease in any
such proceedings; (d) the assignment or transfer of the Lease by the Lessee; (e)
any disability or other defense of the Lessee; or (f) the cessation from any
cause whatsoever of the liability of the Lessee.

     5.     Until all the covenants and conditions in said Lease on the
Lessee's part to be performed and observed are fully performed, observed,
waived, released or forgiven by Lessor, the Guarantor: (a) shall have no
right of subrogation against the Lessee by reasons of any payments or acts
of performance by the Guarantor hereunder; (b) waives any right to enforce
any remedy which the Guarantor now or hereafter shall have against the Lessee
by reason of any one or more payment or acts of performance in compliance
with the obligations of the Guarantor hereunder; and (c) subordinates any
liability or indebtedness of the Lessee now or hereafter held by the
Guarantor to the obligations of the Lessee to the Lessor under said Lease.

     6.     Notwithstanding any payments of Basic Rent or Additional Rent
made by the undersigned pursuant to the provisions of this Guaranty, the
undersigned shall not seek to enforce or collect upon any rights which the
undersigned now has or may acquire against the Lessee either by way of
subrogation, indemnity, reimbursement or contribution for any amount paid
under this Guaranty. In the event either a petition is filed under the
Bankruptcy Code or under any other applicable Federal or state insolvency law
in regard to the Lessee, or an action or proceeding is commenced for the
benefit of the creditors of the Lessee, and the Lessor is ordered to repay
all or any portion of any payments made to Lessor which were received from or
on behalf of the Lessee and which are held voidable on the grounds of
preference, fraudulent conveyance or otherwise, the undersigned shall pay to
the Lessor an amount equal to such payments held to be voidable, provided,
however, that the aggregate of all payments made by the undersigned under
this Guaranty shall not exceed the amount of the Basic Rent and Additional
Rent arrears then due and payable.

            If at any time payment, or portion thereof, made by or for the
account of the undersigned on account of the obligations under this Guaranty, is
set aside by any court or trustee having jurisdiction as a voidable preference,
fraudulent conveyance or otherwise as being subject to avoidance or recovery
under the provisions of the Bankruptcy Code or under any other applicable
Federal or state insolvency law or similar law, the undersigned hereby agrees
that this Guaranty (a) shall continue and remain in full force and effect, and
(b) if previously terminated as a result of the undersigned having fulfilled the
undersigned's obligations hereunder in full or as a result of the Lessor having
released the undersigned from its obligations and liabilities hereunder, shall
without further act or instrument be reinstated and shall thereafter remain in
full force and effect, in either case with the same force and effect as though
such payment or portion thereof had not been made, and, if applicable, as if
such previous termination had not occurred.

     7.     This Guaranty shall apply to the said Lease and to any renewal or
extension thereof.

     8.     This instrument and the Lease may not be changed, modified,
discharged or terminated orally or in any manner other than by an agreement
in writing signed by the Guarantor and the Lessor.

            IN WITNESS WHEREOF, the Guarantor has hereunto set his hands and
seals the _____ day of February 1997.

                                       LONG BEACH MORTGAGE COMPANY

                                       BY:
                                          -------------------------------

                                       2
<Page>

                                GUARANTY OF LEASE

         WHEREAS, LONG BEACH ACCEPTANCE CORP., with offices at 690 Kinderkamack
Road, Oradell, New Jersey 07649 (hereinafter referred to as "Lessee") is
desirous of entering into the lease hereinafter mentioned; and

         WHEREAS, LONG BEACH MORTGAGE COMPANY, with offices at 1100 Town and
Country Road, Orange, California 92668 (hereinafter referred to as "Guarantor")
has requested MACK PARAMUS AFFILIATES, whose address is 370 West Passaic Street,
Rochelle Park, New Jersey 07662 (hereinafter referred to as "Lessor") to enter
into a lease with the Lessee for seven (7) years and two (2) months in the
building known as Mack Centre II located at One Mack Center Drive, Paramus, New
Jersey (hereinafter referred to as "Lease"); and

         WHEREAS, the Lessor has refused to enter into the said Lease unless the
Guarantor guarantees said Lease in the manner hereinafter set forth.

         NOW, THEREFORE, to induce the Lessor to enter into said Lease, which
Lease is dated this day and is being executed simultaneously herewith, the
Guarantor hereby agrees as follows:

         1. (a) The Guarantor unconditionally guarantees to the Lessor and the
successors and assigns of the Lessor, the full and punctual performance and
observance by the Lessee of all of the terms, covenants and conditions in said
Lease contained on Lessee's part to be kept, performed or observed.

            (b) If, at any time, default shall be made by the Lessee in the
performance or observance of any of the terms, covenants or conditions in said
Lease contained on the Lessee's part to be kept, performed or observed, the
Guarantor will keep, perform and observe the same, as the case may be, in place
and stead of the Lessee.

            (c) The liability of the Guarantor hereunder shall be enforceable
against the Guarantor without the necessity for any suit or proceedings on the
Lessor's part of any kind or nature whatsoever against the Lessee.

         2. Any act of the Lessor, or the successors or assigns of the Lessor,
consisting of a waiver of any of the terms or conditions of said Lease, provided
such waiver does not materially increase the obligations of Lessee or Guarantor,
or the giving of any consent to any manner or thing relating to said Lease, or
the granting of any indulgences or extensions of time, to the Lessee, may be
done without notice to the Guarantor and without releasing the obligations of
the Guarantor hereunder except with respect to such waivers.

         3. The obligations of the Guarantor hereunder shall not be released by
Lessor's receipt, application or release of security given for the performance
and observance of covenants and conditions in said Lease contained on the
Lessee's part to be performed or observed; nor by any modification of such
Lease, but in the case of any such modification, the liability of the Guarantor
shall be deemed modified in accordance with the terms of any such modification
of the Lease.

         4. The liability of the Guarantor hereunder shall in no way be affected
by (a) the release or discharge of the Lessee in any creditors' receivership,
bankruptcy or other proceedings; (b) the impairment, limitation or modification
of the liability of the Lessee or the estate of the Lessee in bankruptcy, or of
any remedy for the enforcement of the Lessee's said liability under the Lease,
resulting from the operation of any present or future provision of the
Bankruptcy Code or other statute or from the decision in any court; (c) the
rejection or disaffirmance of the

                                       1
<Page>

Lease in any such proceedings; (d) the assignment or transfer of the Lease by
the Lessee; (e) any disability or other defense of the Lessee; or (f) the
cessation from any cause whatsoever of the liability of the Lessee.

         5. Until all the covenants and conditions in said Lease on the Lessee's
part to be performed and observed are fully performed, observed, waived,
released or forgiven by Lessor, the Guarantor: (a) shall have no right of
subrogation against the Lessee by reasons of any payments or acts of performance
by the Guarantor hereunder; (b) waives any right to enforce any remedy which the
Guarantor now or hereafter shall have against the Lessee by reason of any one or
more payment or acts of performance in compliance with the obligations of the
Guarantor hereunder; and (c) subordinates any liability or indebtedness of the
Lessee now or hereafter held by the Guarantor to the obligations of the Lessee
to the Lessor under said Lease.

         6. Notwithstanding any payments of Basic Rent or Additional Rent made
by the undersigned pursuant to the provisions of this Guaranty, the undersigned
shall not seek to enforce or collect upon any rights which the undersigned now
has or may acquire against the Lessee either by way of subrogation, indemnity,
reimbursement or contribution for any amount paid under this Guaranty. In the
event either a petition is filed under the Bankruptcy Code or under any other
applicable Federal or state insolvency law in regard to the Lessee, or an action
or proceeding is commenced for the benefit of the creditors of the Lessee, and
the Lessor is ordered to repay all or any portion of any payments made to Lessor
which were received from or on behalf of the Lessee and which are held voidable
on the grounds of preference, fraudulent conveyance or otherwise, the
undersigned shall pay to the Lessor an amount equal to such payments held to be
voidable, provided, however, that the aggregate of all payments made by the
undersigned under this Guaranty shall not exceed the amount of the Basic Rent
and Additional Rent arrears then due and payable.

            If at any time payment, or portion thereof, made by or for the
account of the undersigned on account of the obligations under this Guaranty, is
set aside by any court or trustee having jurisdiction as a voidable preference,
fraudulent conveyance or otherwise as being subject to avoidance or recovery
under the provisions of the Bankruptcy Code or under any other applicable
Federal or state insolvency law or similar law, the undersigned hereby agrees
that this Guaranty (a) shall continue and remain in full force and effect, and
(b) if previously terminated as a result of the undersigned having fulfilled the
undersigned's obligations hereunder in full or as a result of the Lessor having
released the undersigned from its obligations and liabilities hereunder, shall
without further act or instrument be reinstated and shall thereafter remain in
full force and effect, in either case with the same force and effect as though
such payment or portion thereof had not been made, and, if applicable, as if
such previous termination had not occurred.

         7. This Guaranty shall apply to the said Lease and to any renewal or
extension thereof.

         8. This instrument and the Lease may not be changed, modified,
discharged or terminated orally or in any manner other than by an agreement in
writing signed by the Guarantor and the Lessor.

         IN WITNESS WHEREOF, the Guarantor has hereunto set his hands and seals
the 5th day of March, 1997

                                          LONG BEACH MORTGAGE COMPANY

                                          BY:  /s/ Norman  [ILLEGIBLE]
                                             ------------------------------

                                       2
<Page>

                                LANDLORD WAIVER:

KNOW ALL MEN BY THESE PRESENTS:

         (i) The undersigned, MACK PARAMUS AFFILIATES is the Owner and Landlord
("Landlord") under a real property lease with Lessee in the following described
real property (the "Real Property"): That certain real property known as Mack
Centre II located at One Mack Centre Drive in the County of Bergen State of New
Jersey.

         (ii) Long Beach Acceptance Corp. ("Lessee") has entered into or will
enter into a Master Equipment Lease and Schedules thereto with Fleetwood
Financial Corp. ("Lessor") (the "Lease"); said Lease covers certain personal
property (the "Personal Property"), which is or will be located upon the Real
Property, and such Personal Property is described in the Lease and is further
described on Exhibit A annexed hereto and made a part hereof.

         (iii) Lessor, as a condition to entering into the Master Equipment
Lease, requires that the undersigned Landlord agrees to allow the removal by
Lessor of the Personal Property from the Real Property upon the terms and
conditions set forth below.

         NOW, THEREFORE, for good and sufficient consideration, receipt of which
is hereby acknowledged, the undersigned agrees to the placing of the Personal
Property on the Real Property, and agrees as follows:

         1. The Personal Property shall be considered to be personal property
and shall not be considered part of the Real Property regardless of whether or
by what means it is or may become attached or affixed to the Real Property.

         2. The undersigned hereby consents to the Lessor taking a security
interest in such Personal Property, and has no interest, and will not claim any
interest, in the Personal Property; provided, however, that this shall not be
deemed to impair Landlord's rights to (a) bid for and purchase such Personal
Property at a public or private sale; (b) any surplus monies arising out of a
sale of the Personal Property; or (c) file proofs of claim or otherwise
participate in insolvency or bankruptcy proceedings involving Lessee or the
Personal Property.

         3. The undersigned will permit Lessor upon reasonable advance written
notice to Landlord, and at times reasonably acceptable to Landlord, to enter
upon the Real Property for the purpose of exercising any right it may have under
the terms of the Lease, or otherwise including, without limitation, the right to
remove the Personal Property; provided that Lessor indemnifies Landlord and
holds it harmless from and against any other person, corporation or entity
claiming to have any interest or title in or to the Personal Property. Landlord
agrees to such removal of Personal Property on the condition, also, that its
permission does not extend to the removal of leasehold improvements. If Lessor,
in removing the Personal Property, damages any improvements of the undersigned
on the Real Property, Lessor will at its expense, immediately cause same to be
repaired.

         4. Prior to the removal of the Personal Property from the Real Property
by Lessor, Lessor shall post a security deposit or other reasonable assurance
with Landlord to cover the cost of any damage to the Real Property caused by
such removal.

         5. Lessor hereby waives any claim or cause of action against Landlord
for injury or damage to person or property, whether due to Landlord's negligence
or otherwise, or any other claim whatsoever in connection with or arising out of
Lessor's entry upon the Real Property and/or its removal of the Personal
Property therefrom.

         6. This agreement shall be binding upon the heirs, successors and
assigns of the undersigned.

         IN WITNESS WHEREOF, the undersigned has executed this instrument
at _______________________, this 23rd day of February, 1998.

FLEETWOOD FINANCIAL CORP., LESSOR

    /s/  [ILLEGIBLE]
---------------------------------

MACK PARAMUS AFFILIATES, LANDLORD
By: Cali-Sub I, Inc.
    General Managing Partner

    /s/  James G. Nugent
---------------------------------
    Sr. V. President

<Page>

                                   EXHIBIT A

         Equipment Schedules to Master Lease Agreements No. 3162 & 3057

              See the attached Exhibit "A" (Schedule of Equipment)

All equipment which is stated as located at 690 Kinderkamack Road, Oradell,
NJ 06749 on the Exhibit "A" (Schedule of Equipment) is now located at Mack
Centre II, One Mack Centre Drive, 4th Floor, Paramus, NJ 07652.

<Page>

                            FIRST AMENDMENT TO LEASE

         THIS AMENDMENT (hereinafter referred to as this "Amendment") made the
30th day of June, 1998, between MACK-CALI REALTY, L.P., successor in interest
to MACK PARAMUS AFFILIATES (hereinafter referred to as "Lessor"), whose
address is c/o Mack-Cali Realty Corporation, 11 Commerce Drive, Cranford, New
Jersey 07016 and LONG BEACH ACCEPTANCE CORP. (hereinafter referred to as
"Lessee"), whose address is One Mack Centre Drive, Paramus, New Jersey 07652.

                              W I T N E S S E T H:

         WHEREAS, Lessor's predecessor, Mack Paramus Affiliates and Lessee
entered into a Lease dated March 5, 1997 (hereinafter referred to as the
"Lease"), whereby Lessee is presently in possession of premises containing
approximately 34,759 gross rentable square feet of space consisting of 15,504
gross rentable square feet on the first (1st) floor and 19,755 gross rentable
square feet on the fourth (4th) floor (hereinafter referred to as the "Existing
Premises") in the building known as Mack Centre II located at One Mack Centre
Drive, Paramus, New Jersey (hereinafter referred to as the "Building"); and

         WHEREAS, on December 11, 1997, Mack-Cali Realty, L.P. succeeded to the
interest of Mack Paramus Affiliates; and

         WHEREAS, the Lease contained an obligation on the thirteenth month
after the Commencement Date of the Lease for the Lessor to provide an additional
6,150 gross rentable square feet ("6,150 Space") to Lessee, and the Lessee had
an obligation to lease the 6,150 Space from the Lessor; and

         WHEREAS, the parties hereto desire to amend the Lease in the respects
and on the conditions hereinafter stated.

         NOW, THEREFORE, Lessor and Lessee agree as follows:

         1. For purposes of this Amendment, capitalized terms shall have the
meanings ascribed to them in the Lease unless otherwise defined herein.

         2. Lessor shall have no obligation now or in the future to provide to
Lessee the 6,150 Space.

         3. Lessee shall have no obligation now or in the future to lease the
6,150 Space from Lessor.

         4. Lessor and Lessee hereby agree that all references to the 6,150
space including Sections 1, 3(b), 37 and 42(a) in the Lease are hereby deleted
with no further obligation of either party as it pertains to that space.

         5. As of the date hereof, Lessee represents, warrants and covenants
that Lessor is not in default under any of its obligations under the Lease and
that to the best of Lessee's knowledge, Lessee is not in default of any of its
obligations under the Lease and no event has occurred which, with the passage of
time or the giving of notice, or both, would constitute a default by either
Lessor or Lessee thereunder.

         6. As of the date hereof, Lessor represents, warrants and covenants
that Lessee is not in default under any of its obligations under the Lease and
that to the best of Lessor's knowledge, Lessor is not in default of any of its
obligations under the Lease and no event has occurred which, with the passage of
time or the giving of notice, or both, would constitute a default by either
Lessee or Lessor thereunder.

         7. Except as amended by this Amendment, the Lease and all the
covenants, agreements, terms, provisions and conditions thereof shall remain in
full force and effect and are hereby ratified and affirmed. The covenants,
agreements, terms, provisions and conditions contained in this Amendment shall
bind and inure to the benefit of the parties hereto and their respective
successors and except as otherwise provided in the Lease as amended by this
Amendment, their respective assigns. In the event of any conflict between the
terms contained in this Amendment and the Lease, the terms herein contained
shall supersede and control the obligations and liabilities of the parties.

                                       1
<Page>

         IN WITNESS WHEREOF, Lessor and Lessee have hereunto set their hands and
seals as of the date and year first above written, and acknowledge the one to
the other that they possess the requisite authority to enter into this
transaction and to sign this Amendment.

                                      MACK-CALI REALTY, L.P.,
                                      LESSOR

                                      By:   Mack-Cali Realty Corporation
                                            General Partner

                                      By:   /s/ James G. Nugent
                                            -----------------------------
                                            Name: James G. Nugent
                                            Title: Sr. V.P. - Leasing

                                      LONG BEACH ACCEPTANCE CORP., LESSEE

                                      By:   /s/ George S. Ginsberg
                                            -----------------------------
                                            Name: George S. Ginsberg
                                            Title: Executive Vice President and
                                                   Secretary

                                       2<Page>

                                                                    Exhibit 10.3

                         PURCHASE AND LICENSE AGREEMENT
                            FOR APPRO SYSTEMS, INC.,

         AGREEMENT made this 12th day of July, 1995, by and between LONG BEACH
ACCEPTANCE CORP., having its principal office and place of business at 690
Kinderkamack Road, Oradell, NJ 07649, (hereinafter referred to as "Purchaser"),
and APPRO Systems, Inc., a Louisiana corporation, having an office and place of
business at 9489 Interline Avenue, Baton Rouge, Louisiana 70809 (hereinafter
referred to as "APPRO").

         Under these terms and conditions, APPRO will: 1) furnish such licensed
programs to Purchaser, 2) furnish licensed optional materials in support of such
licensed programs, 3) grant to Purchaser a nontransferable and non-exclusive
license to use the licensed program materials, and 4) provide program services
and maintenance, all as described herein. Purchaser agrees with respect to the
licensed programs to accept the responsibility for: 1) their selection to
achieve Purchaser's intended results, 2) their use, and 3) the results obtained
therefrom.

                              W I T N E S S E T H:

1.       AGREEMENT TO SELL AND GRANT OF LICENSE. APPRO SHALL:

         1.1.     offer to sell to Purchaser any or all of the optional software
                  and equipment listed in Exhibit "A" hereto (hereinafter
                  referred to as the "Equipment"); Prices quoted will be
                  guaranteed for ninety days from the date of this Agreement;

         1.2.     develop for Purchaser the custom software listed in Exhibit
                  "C" hereto (hereinafter referred to as the "Custom Software");

         1.3.     grant Purchaser a nontransferable and non-exclusive perpetual
                  license to use the following, on the Equipment as described in
                  Exhibit "A" hereto (hereinafter referred to as the
                  "Equipment"):

                  1.3.1.   the Custom Software;

                  1.3.2.   certain data processing programs other than the
                           Custom Software, consisting of a series of
                           instructions or statements in machine readable form
                           and certain related materials as described in Exhibit
                           "B" hereto (hereinafter referred to as the "Licensed
                           Programs");

                                                                               1
<Page>

                  1.3.3.   certain machine readable or printed materials not
                           included in a Licensed Program which APPRO has
                           designated for use in connection with a Licensed
                           Program (hereinafter referred to as the "Licensed
                           Optional Materials") (the Licensed Programs and
                           Licensed Optional Materials are hereinafter
                           collectively referred to as the "Licensed Program
                           Materials"); and

         1.4.     provide program services to Purchaser as described herein
                  (hereinafter referred to as the "Program Services").

         The Equipment, Licensed Program Materials and Custom Software are
         hereinafter collectively referred to as the "System."

2.       COMPENSATION

         2.1.     Purchaser agrees to pay and APPRO agrees to accept the sum of
                  Eighty Four Thousand Eight Hundred ($84,800.00) dollars for
                  the System supplied by APPRO.

         2.2.     For each Custom Software Program or group of Custom Software
                  programs, Purchaser agrees to any additional costs made
                  necessary or resulting from changes requested and agreed to by
                  Purchaser. Such changes will be made at APPRO's prevailing
                  programming rate, which is $100. per hour on the date of this
                  Agreement. Any changes requested by Purchaser in the Custom
                  Software Program or group of Custom Software Programs
                  subsequent to the effective date of this Agreement must be in
                  writing.

         2.3.     Purchaser shall pay APPRO as a down payment the sum of Thirty
                  Eight Thousand Two Hundred Eighty Eight ($38,288.00) dollars
                  which is forty (40%) percent of the cost of the System and
                  Software Maintenance Support Services Fee within fifteen (15)
                  days of the date this Agreement is executed by Purchaser.
                  Purchaser shall pay APPRO an additional Thirty Eight Thousand
                  Two Hundred Eighty Eight ($38,288.00) dollars within forty
                  five (45) days of the date of this agreement. Purchaser shall
                  pay APPRO the remaining amount due for the Licensed Program
                  Materials and Software Maintenance and Support Services Fee
                  and the price for all completed Custom Software within thirty
                  (30) days after the following has occurred:

                  2.3.1.   Purchaser has either:

                           2.3.1.1. notified APPRO in writing that the System
                                    has been delivered to Purchaser, that
                                    APPRO's personnel have completed the
                                    Installation and Training Services set forth
                                    in paragraphs 3 and 4 hereof, and that
                                    Purchaser has determined that the System has
                                    the capabilities listed in paragraph 5
                                    hereof, or

                           2.3.1.2. used the System for productive purposes (the
                                    term "productive purposes" shall mean use of
                                    the System to process applications for new
                                    accounts after the initial thirty (30) day
                                    testing period described in paragraph 3
                                    hereof); and

                  2.3.2.   APPRO has submitted a statement to Purchaser
                           of the amount owed by Purchaser for the
                           system.

         2.4.     In addition to the price of the System, Purchaser shall pay:

                  2.4.1.   all reasonable costs associated with shipping the
                           Equipment to Purchaser;

                  2.4.2.   the cost of insurance on the Equipment during
                           shipment; and

                  2.4.3.   all taxes, including, without limitation, sales and
                           use taxes and any other taxes that may be imposed on
                           the sale of the System, but exclusive of any local,
                           state or federal income tax applicable to the net
                           income or gross receipts of APPRO.

                                                                               2
<Page>

         2.5.     If Purchaser cancels this Agreement before delivery of any
                  component part of the System, then the down payment shall be
                  forfeited and become the property of APPRO unless APPRO fails
                  to deliver and install the System in accordance with paragraph
                  3 contained herein. This agreement may be canceled if the
                  System fails to pass acceptance testing in accordance with
                  paragraph 3. In this event, APPRO will return the down payment
                  to Purchaser and Purchaser will immediately return and
                  discontinue use of the System and duly certify that all copies
                  of the Licensed Program Materials and Custom Software have
                  been destroyed and returned to APPRO.

3.       DELIVERY, INSTALLATION, AND ACCEPTANCE TESTING.

         APPRO shall deliver and install the System at Purchaser's premises at
         690 Kinderkamack Road, Suite 203, Oradell, NJ 07469. For a period of
         thirty (30) days following delivery and installation of the System at
         Purchaser's site, Purchaser shall be entitled to use the System in an
         acceptance testing period, and such usage shall not in any event be
         considered as acceptance of the System. Acceptance testing requirements
         shall be met if the System performs those functions set forth in
         paragraph 5. If the acceptance testing discloses deficiencies in the
         System, Purchaser shall promptly notify APPRO of such failure, and
         APPRO shall correct such deficiencies at no cost to Purchaser within
         twenty (20) days. Thereafter, Purchaser shall have an additional
         fourteen (14) days within which to repeat any applicable acceptance
         test relating to the affected program. Purchaser may continue to
         operate the unaffected programs during this additional testing period
         by paying the amount due less the cost of the affected program.

4.       INSTALLATION AND TRAINING SERVICES.

         4.1.     APPRO shall install the System on the Equipment provided by
                  Purchaser and APPRO during its normal working hours and as
                  agreed to by Purchaser. At least fifteen (15) days prior to
                  the delivery date, the installation site will be prepared by
                  Purchaser at its expense according to instructions outlined in
                  the "Installation Planning Guide." Purchaser shall be
                  responsible for and shall furnish all necessary labor to
                  unpack and place the Equipment. If installation by APPRO is
                  prevented by local law, union agreement, or otherwise, APPRO
                  will supervise the installation and Purchaser mill bear any
                  additional costs occasioned thereby.

         4.2.     APPRO shall train Purchaser's personnel to use the System and
                  shall complete such training at the time the System is
                  delivered and installed. Purchaser shall pay the amount
                  specified in Exhibit "C" for this installation and training.
                  In addition to the fee specified in Exhibit "C", Purchaser
                  shall reimburse APPRO for the reasonable living expenses of
                  APPRO's personnel during such installation and training plus
                  reasonable travel expenses from Baton Rouge to Purchaser's
                  installation site. APPRO shall submit an itemized statement
                  accompanied by receipts for its personnel's living expenses in
                  writing to Purchaser and Purchaser shall reimburse APPRO for
                  such expenses within thirty (30) days of receiving such
                  statement.

                                                                               3
<Page>

5        CAPABILITIES OF THE SYSTEM

    PERFORMANCE

         -        The System will perform within a response time limitation of
                  three to five seconds for basic inquiry and data entry
                  functions, excluding queries and report extracts.

    APPLICATION ORIGINATION

         -        Select all programs from easy to use menus.

         -        Identification of incomplete applications.

         -        Online error checking for successful purchase of credit
                  report.

         -        Critical path processing of Instant Credit applications
                  provides rapid completion of rush applications even when a
                  credit report is required.

         -        Process multiple products on one application.

         -        Process multiple applicants on one application.

         -        Entry of partial application data with status tracking of
                  incomplete applications.

         -        User-definable help files.

         -        Electronic routing to specific personnel.

         -        Unique identification of each channel differentiates sources
                  from points of distribution.

         -        Product worksheets capture details about the credit product
                  requested.

         -        Automatic prefill of city and state when zip/postal code
                  entered.

         -        Bypass credit bureau retrieval processed based on user
                  selection.

    CREDIT BUREAU ACCESS AND INTERPRETATION

         -        Routes credit bureau report requests by zip/postal code based
                  on user-maintained zip code tables.

         -        Obtains credit reports from Equifax, Trans Union, TRW or
                  affiliated credit bureau networks at 14.4 baud, including
                  automatic dialing, log-on and inquiry formatting.

         -        Instantly re-routes requests for credit reports to a secondary
                  vendor when the primary vendor is down or slow.

                                                                               4
<Page>

         -        Electronic processing of credit history with computer analysis
                  including common summarization, automatic debt to income
                  calculation, application of user-selected review rules, and
                  automatic decline reason assignments.

         -        Automatic approval or decline of applications with automatic
                  fax delivery of credit decisions to source of applications.

    ANALYST

         -        Select all programs from easy to use menus.

         -        Track applications with user-definable special status codes.

         -        User notes and comments on each application are stored in a
                  user-definable comment file for viewing and modifications.

         -        Automatic routing of applications to verification work queues
                  based on decision rule strategy and user selected
                  destinations.

         -        Cancel applications.

         -        Choose which applicant(s) to pull a secondary credit report
                  on.

         -        Retrieve a joint credit bureau report with only one request to
                  the credit bureau.

         -        Compare credit line assignment to loan authority of credit
                  analyst and route applications accordingly.

         -        Redecision applications once approved.

         -        Identification of incomplete applications and production of
                  letters requesting missing application data.

         -        Income calculator function to facilitate totaling of
                  applicant's income from multiple sources.

         -        Easily re-order additional credit report when warranted.

         -        Process multiple applicants on one application.

         -        Process multiple products on one application.

         -        Edit applicant data.

         -        Speed Scan through credit report to quickly view problem
                  areas.

         -        Applications for large lines are electronically routed to loan
                  officers with the appropriate lending authority.

         -        Access to all functions in Application Origination and
                  Verification programs.

    DECISION RULE STRATEGY

         -        Select all programs from easy to use menus.

                                                                               5
<Page>

         -        Artificial intelligence database stores over one hundred
                  decision rule strategies.

         -        Implements proprietary and standard score cards.

         -        Tailor decision rule strategies to vary by product type.

         -        Supports up to ten credit scoring algorithms (programs for
                  scoring algorithms are sold separately).

         -        Automatic approval/decline decisions based on decision rule
                  strategy with automatic routing to appropriate work queues.

         -        Prioritization of work queues with provisions for rush
                  application decisioning and re-routing of applications to
                  different queues.

         -        Automatic calculation of debt/income ratio based on
                  application and credit bureau information.

         -        Automatic calculation of loan/collateral value ratio.

         -        Automatic calculation of credit limit/income ratio.

         -        Special handling of trades with missing payments, ECOA
                  designations, etc.

         -        Maintain decision strategy parameters in user defined tables.

         -        Implements credit reporting agency subscriber code based on
                  products.

    FRAUD PREVENTION

         -        Select all programs from an easy to use menu.

         -        Instantly detect potential frauds by checking both internal
                  online fraud file including comparison of name, address,
                  social security number, and phone number of known fraudulent
                  and high risk conditions (such as prisons, mail drops, etc.)

         -        Access credit bureau vendor fraud products.

         -        Check for duplicate applications by comparing name, address,
                  and social security number of each newly entered application
                  to the entire application inventory.

         -        Maintain a fraudulent application file including name,
                  address, phone number and social security number.

    LETTER GENERATION

         -        Automatic selection of reasons for decline or reasons for
                  condition/additional information.

         -        Automatic production of decline letters to include name,
                  address and telephone number of consumer reporting agency.

         -        Automatic production of approval letters.

         -        Sort letters by application status, source, postal code, type
                  code, or by loan officer with up to three fields.

                                                                               6
<Page>

         -        Print letters to a file and/or a printer.

    REPORTS

         -        Flexible reporting capabilities allow user-definable reports
                  to be generated on any data that is stored.

         -        Select all programs from an easy to use menu.

         -        Quantify, qualify and age pending applications, for online
                  display and printed reports.

         -        Print dealer/branch/correspondent directories.

         -        Print mailing labels.

         -        Track application volumes, approval ratios and turnaround time
                  by source, using alphanumeric error-checked source code.

         -        Track application volumes, approval ratios and turnaround
                  times by product using an error-checked product code.

         -        Access application data files directly from third party
                  spreadsheet or database products using Microsoft SQL Server
                  ODBC drivers.

         -        Send and retrieve information from Issuer's Clearing House
                  (separate license required).

         -        Provide the daily and ad hoc reports for tracking of
                  application activity listed below:
                  1.   Source Performance
                  2.   Volume
                  3.   Type
                  4.   Reasons
                  5.   Analyst Performance
                  6.   Canceled Today
                  7.   Channels
                  8.   Contacts
                  9.   Daily Activity Summary
                  10.  Disposition Log
                  11.  Entered Today
                  12.  Quality

    INQUIRY

         -        Select all programs from an easy to use menu.

         -        Instantly inquire on an application by name, address, social
                  security number, and source.

    WORKFLOW MANAGEMENT

         -        Electronic routing facility provides users with a
                  easy-to-identify listing of applications in the work queue.

         -        Automatic queuing of applications to analysts on a first-in,
                  first-out basis with priority given to rush applications.

                                                                               7
<Page>

         -        Reassign work queues to different personnel online.

         -        Review online work queues in process.

         -        Route applications to appropriate processing teams as
                  necessary based on channel or products.

         -        Graphical display of production queues for faxback and credit
                  bureau access processes.

    SYSTEM ADMINISTRATION

         -        Select all operator functions from an easy to use menu.

         -        Control system performance through user maintainable control
                  tables for User authorizations (sign-on security for specific
                  function levels, membership to special processing teams)
                  1.   Decision Matrices
                  2.   Credit bureau assignments by zip/postal code
                  3.   Credit bureau subscriber numbers and passwords
                  4.   Consumer referral addresses
                  5.   Adverse action, condition and override reasons
                  6.   Application channels
                  7.   Vendor preferences for title searches, flood
                       searches, etc. based on states or channels
                  8.   Analyst loan officer, or buyer files
                  9.   Processing team memberships for special routing
                  10.  Analyst override authority
                  11.  Product types
                  12.  Letter templates
                  13.  Fax templates

         -        Password security on user-selected functions.

         -        Change sign-on identification/operator access levels in a
                  user-maintainable table.

         -        Use online help screens to identify particular screens to use
                  or assist operator with coding within a screen.

         In addition, the Custom Software as specified in Exhibit C hereto will
         be provided.

6.       OPERATING REQUIREMENTS.

         Purchaser shall provide a suitable operating environment as outlined in
         the "Installation Planning Guide" for the System.

7.       SOFTWARE LICENSE/CONFIDENTIALITY.

                                                                               8
<Page>

         7.1.     The license granted to Purchaser pursuant to this Agreement
                  authorizes Purchaser to use the System. Purchaser agrees that
                  it "will not sub license, assign or transfer any Licensed
                  Program Materials, Custom Software or copies thereof without
                  APPRO's prior written consent, which consent shall not be
                  unreasonably withheld, provided, however, the Purchaser may
                  assign or transfer same without consent to any subsidiary or
                  affiliate of the Purchaser or Purchaser's parent, or any
                  entity with which the Purchaser or its parent may merge, or to
                  whom the Purchaser or Purchaser's parent may sell all or
                  substantially all of its assets, or with whom the Purchaser or
                  Purchaser's parent may enter into arrangements to finance the
                  purchase of the System hereunder.

         7.2.     Purchaser acknowledges and agrees that the Licensed Program
                  Materials, Custom Software, trade secrets, ideas, research,
                  methods, manuals, procedures, systems, improvements,
                  enhancements, copyrighted or other materials, and any other
                  information or property of APPRO shall remain the sole and
                  exclusive property of APPRO and is provided to Purchaser in
                  trust and confidence and shall be deemed confidential for
                  purposes of this Agreement. Purchaser agrees to keep the
                  aforesaid information and property of APPRO confidential and
                  to use it only for the purposes and in the manner contemplated
                  by this Agreement. Purchaser agrees that it, or any of its
                  agents, employees, owners, or representatives, shall not copy,
                  alter, or make the Licensed Program Materials, Custom
                  Software, operations manual or portions thereof, or any other
                  confidential information or property, available to third
                  parties without APPRO's prior written consent. Purchaser
                  agrees to enforce the terms of these provisions as to its
                  agents, employees, representatives, and owners. Purchaser
                  further hereby grants APPRO the right but not the obligation,
                  to enforce these provisions in APPRO's name against any such
                  agents, employees, owners, or representatives violating the
                  above provisions.

         7.3.     The license granted pursuant to this Agreement shall begin on
                  the date this Agreement is executed by the parties to this
                  Agreement and continue thereafter unless and until terminated:

                  7.3.1.   by Purchaser at any time on not less than thirty (30)
                           days prior written notice, or

                  7.3.2.   by APPRO, in the event that Purchaser breaches any of
                           its obligations with regard to the Licensed Program
                           Materials, the Custom Software, the operating
                           manuals, or any provisions of this Agreement on not
                           less than thirty (30) days prior written notice;
                           provided, however, that APPRO's notice shall specify
                           the breaches committed by Purchaser and Purchaser
                           shall have the right to cure such breaches before the
                           termination date.

                  Upon termination of the Agreement by either party, Purchaser
                  shall return all Licensed Program Materials, Custom Software,
                  operating manuals and all other property and confidential
                  information and materials of APPRO promptly after the
                  termination of this Agreement, and Purchaser shall not retain
                  any copies thereof.

8.       PROGRAM SERVICES.

         8.1.     In the event Purchaser discovers any discrepancy (as described
                  herein) within ninety (90) days of acceptance in a Licensed
                  Program or Custom Software Program after the testing period
                  specified in paragraph 3 hereof, APPRO shall provide the
                  following Program Services free of charge: APPRO shall correct
                  any such discrepancy by:

                  8.1.1.   reprogramming or replacing the Licensed Program or
                           Custom Software program, or

                  8.1.2.   issuing instructions to Purchaser concerning
                           correction of the discrepancy or a method of
                           bypassing the discrepancy.

                                                                               9
<Page>

                  APPRO shall provide such Program Services only if it is
                  notified of any discrepancy in a Licensed Program or Custom
                  Software and is provided information required by APPRO. As
                  used in this Agreement, the term "discrepancy" shall mean the
                  System failure to possess a capability listed in paragraph 5
                  hereof or a capability of the Custom Software.

         8.2.     For any Licensed Program, APPRO shall have the right to charge
                  for program services requested by Purchaser to the extent they
                  are not specified as provided without additional charges.
                  APPRO shall have the right to charge for any effort which
                  results from providing program services requested by Purchaser
                  for an altered licensed program, operator error, a release
                  which is not current, equipment malfunction, or failure of the
                  Purchaser to provide a suitable operating environment. Charges
                  for these program services are provided in the software
                  maintenance contract attached hereto and made a part hereof as
                  Exhibit "D".

9.       SUBSEQUENT RELEASES OF LICENSED PROGRAMS.

         9.1.     At the time the System is delivered to Purchaser, APPRO shall
                  provide the latest available release of the Licensed Program
                  Materials. APPRO shall provide to Purchaser and grant
                  Purchaser a license to use any subsequent release of Licensed
                  Program Materials issued by APPRO, in accordance with the
                  terms of this Agreement, at a price not to exceed 50% of the
                  then current retail price of the release.

         9.2.     APPRO reserves the right to alter the designations of any
                  software in order to reflect changing policy and/or support
                  requirements during the life of the software. Ongoing software
                  support and charges, therefore, shall be in accordance with
                  APPRO's commercial prices in effect at the time software or
                  support is requested. APPRO reserves the right, after the
                  expiration of three years from the date of this Agreement, to
                  withdraw software support should APPRO in its sole discretion
                  determine that continued support for the software is no longer
                  economically feasible, considering possible obsolescence and
                  similar factors. However, APPRO shall maintain software
                  support for the latest version and the next most current
                  version of such software and make such support available to
                  Purchaser for at least three years from the date of this
                  Agreement. APPRO shall provide one hundred eighty (180) days
                  notice of any subsequent software support withdrawal or any
                  change in license fee transaction charges.

         9.3.     APPRO agrees to maintain on deposit at all times with the
                  Escrow Agent defined below a then-current copy of (i) the
                  software in machine-readable object code, (ii) user
                  documentation relating to the System, (iii) manuals for the
                  operation of the System and (iv) a copy of the Source Code,
                  all of the foregoing as from time to time enhanced and
                  modified. In the event APPRO of any successor to APPRO, by
                  reason of a general cessation of business, the filing of a
                  petition in bankruptcy, an adjudication of bankruptcy, or the
                  withdrawal of software support, fails to provide the system or
                  any maintenance thereof in accordance with this Agreement,
                  Purchaser, upon request to the Escrow Agent, shall have the
                  right, both under this Agreement and as a third party
                  beneficiary of APPRO's Agreement with the Escrow Agent, to
                  obtain copies of such materials to use in maintaining the
                  System under this Agreement. The Escrow Agent shall be a
                  financial institution located in Baton Rouge, Louisiana, and
                  satisfactory to both parties hereto. APPRO shall forthwith
                  provide to Purchaser a copy of APPRO's Agreement with the
                  Escrow Agent.

10.      WARRANTY.

         EXCEPT TO THE EXTENT PROVIDED IN SECTION 8.1 OF THIS AGREEMENT, APPRO
         DOES NOT MAKE ANY EXPRESS OR IMPLIED WARRANTY WHATSOEVER TO ALL OR ANY
         PART OF THE

                                                                              10
<Page>

         SYSTEM OR ANY ITEM CONVEYED TO PURCHASER IN THIS AGREEMENT INCLUDING,
         BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND
         FITNESS FOR A PARTICULAR PURPOSE OR THOSE SPECIFIED IN THE LOUISIANA
         CIVIL CODE.

         Except to the extent provided in Section 8.1 of this Agreement, APPRO
         specifically does not warrant that the functions contained in a
         licensed program will meet Purchaser's requirements or will operate in
         the combinations which may be selected for use by Purchaser, or that
         the operation of the licensed program will be uninterrupted or error
         free.
         APPRO hereby assigns its interest in any manufacturer's warranty
         applicable to the Equipment conveyed under this Agreement to the
         Purchaser.

11.      WARRANTY OF TITLE.

         APPRO warrants to Purchaser that the title to the System conveyed
         hereunder shall be good; its transfer rightful; and the System
         hereunder shall be free and clear of any security interest, lien, or
         other encumbrances and that it has full power and authority to grant
         the rights granted by this Agreement to Purchaser with respect to the
         Licensed Program Materials and the Custom Software, and that the use
         thereof by Purchaser will not in any way constitute an infringement or
         other violation of any copyright, trade secret, trademark, patent,
         invention, proprietary information, nondisclosure, or other rights of
         any third party.

12.      ASSIGNMENT.

         Any assignment of this Agreement by either APPRO or Purchaser without
         the express written consent of the other party hereto, such consent not
         to be unreasonably withheld, shall be void, provided, however, that
         Purchaser may without APPRO's consent, assign all or any part of its
         right, title, and interest under this Agreement to anyone to whom the
         Licensed Program Materials, Custom Software or copies thereof may be
         assigned without APPRO's consent pursuant to Section 7.1 of this
         Agreement.

13.      LIMITATION OF REMEDIES. APPRO'S ENTIRE LIABILITY AND THE PURCHASER'S
         EXCLUSIVE REMEDY SHALL BE AS FOLLOWS:

         13.1.    In all situations involving performance or nonperformance of
                  licensed programs furnished under this Agreement, Purchaser's
                  remedy is:

                  13.1.1.  the correction by APPRO of program discrepancies, or

                  13.1.2.  if, after repeated efforts, APPRO is unable to
                           correct any program discrepancies, Purchaser shall,
                           at Purchaser's option, either (a) be entitled to
                           recovery of the purchase price of only those programs
                           which cannot be corrected by APPRO or (b) be entitled
                           to return the entire System to APPRO and receive a
                           full refund of the purchase price.

         13.2.    If any third party claim causes Purchaser's quiet enjoyment
                  and use of the Licensed Program Materials and the Custom
                  Software to be seriously endangered or disrupted, APPRO shall:

                  13.2.1.  replace the same, without charge, with a compatible,
                           functionally equivalent and non-infringing product;
                           or

                  13.2.2.  modify the same to avoid the infringement; or

                  13.2.3.  obtain a license for Purchaser's continued use of the
                           same at no additional charge to Purchaser; and

                                                                              11
<Page>

                  13.2.4.  indemnify and hold harmless Purchaser from and
                           against all damages, expenses, liabilities and costs
                           of any nature, including attorney's fees, incurred in
                           connection with such claim.

         13.3.    If any replacement or modification made pursuant to Section
                  13.2.1 or Section 13.2.2., respectively, contains any
                  discrepancy as defined in Section 8.1. which is not corrected
                  after repeated efforts, Purchaser shall, at Purchaser's
                  option, either (a) be entitled to recovery of the purchase
                  price of only those programs which cannot be corrected by
                  APPRO or (b) be entitled to return the entire System to APPRO
                  and receive a full refund of the purchase price.

         13.4.    For any other claim whatsoever, including, but not limited to,
                  claims concerning performance or nonperformance, or for any
                  cause whatsoever, regardless of the form of action, whether in
                  contract or tort including negligence, or any other claim in
                  any way related to the subject matter of this Agreement,
                  APPRO's entire liability shall be limited to the original
                  purchase price less the reasonable cost of use by the
                  Purchaser.

14.      INDEMNIFICATION AND ASSISTANCE IN LITIGATION.

         Each party (the indemnifying party) shall indemnify and hold harmless
         the other (the indemnified party) and its officers, employees, agents
         and assigns against any expense, loss, claim, suit, liability and the
         like, including reasonable attorney fees and costs, arising by reason
         of any act or omission by the indemnifying party or any of its
         officers, employees, agents or assigns. With respect to any such
         expense, loss, claim, suit, liability or the like, each indemnified
         party shall notify the other, permit participation in the defense
         thereof, and not settle without the approval of the other party.

15.      FORCE MAJEURE.

         Neither party shall be responsible for delays or failures in
         performance resulting from acts beyond the control of such party. Such
         acts shall include but not be limited to acts of God, strikes, riots,
         acts of war, epidemics, governmental regulations enacted after the
         fact, fire, communication line failures, power failures, earthquakes or
         other disasters. APPRO shall not be responsible for any delay or
         failure of delivery resulting from difficulty in obtaining materials,
         labor or transportation, energy shortage, delay in shipment by APPRO's
         suppliers, or any other cause beyond its reasonable control.

                                                                              12
<Page>

16.      CANCELLATION.

         In the event either Purchaser or APPRO defaults in the performance of
         any of the terms and conditions of this Agreement, the party not in
         default may terminate this Agreement thirty (30) days after sending
         written notice to the other party, provided, however, that the party in
         default shall have the right to cure such default by performing as
         provided in the Agreement within such thirty (30) day period.

17.      ACCESS AND CONFIDENTIALITY.

         17.1.    Purchaser shall permit APPRO access to Purchaser's premises,
                  during Purchaser's normal business hours for any reason
                  arising out of or in connection with Purchaser's obligations
                  under this Agreement. However, APPRO must give Purchaser at
                  least seventy two (72) hours advance notice of an intended
                  visit, APPRO must be accompanied by an employee of Purchaser
                  at each such visit.

         17.2.    APPRO acknowledges and agrees that everything in Purchaser's
                  offices and all data, ideas, research, methods, procedures and
                  any other information or property of Purchaser shall remain
                  the sole and exclusive property of Purchaser and is provided
                  to APPRO in trust and confidence and shall be deemed
                  confidential for purposes of this Agreement. APPRO agrees to
                  keep the aforesaid confidential and to use it only for the
                  purposes and in the manner contemplated by this Agreement.
                  APPRO agrees that neither it nor any of its agents, employees,
                  representatives or owners shall copy, alter or make the
                  aforesaid, or any other of Purchaser's confidential
                  information or property, available to third parties without
                  Purchaser's prior written consent. APPRO agrees to enforce the
                  terms of this Section 17.2. against its agents, employees,
                  representatives and owners. APPRO further hereby grants
                  Purchaser the right but not the obligation to enforce such
                  terms in Purchaser's name against any such agents, employees,
                  representatives or owners.

                                                                              13
<Page>

18.      NOTICES.

         Any notice required to be given hereunder by either party to the other
         party shall be in writing and shall be effected by certified mail,
         postage prepaid and return receipt requested. Notices shall be
         addressed as set forth below. Either party may notify the other party
         of any change in its address by written notice in accordance with the
         requirements of this paragraph.

         APPRO:           APPRO Systems, Inc.,
                          9489 Interline Avenue
                          Baton Rouge, LA 70809
                          ATTENTION: Craig Uffman

         PURCHASER:       Long Beach Acceptance Corp.
                          690 Kinderkamack Road
                          Oradell, NJ 07649
                          ATTENTION: Mr. B. R. Fitzgerald,
                                     Executive Vice President

19.      GENERAL.

         19.1.    This Agreement is, and is intended by the parties to be, the
                  final expression and the complete and exclusive statement of
                  all the terms of the Agreement between the parties. The
                  parties acknowledge that this Agreement (including the
                  attached Exhibits) constitutes the entire Agreement with the
                  parties, and no covenant, condition, or other term, or
                  provision may be canceled, waived, or modified by a subsequent
                  oral agreement. The parties hereto further expressly agree, as
                  part of the consideration for entering into this Agreement,
                  that any cancellation, waiver, or modification of this
                  Agreement shall be absolutely null and without effect if it is
                  not in writing and signed by all parties.

         19.2.    The failure to require strict compliance or performance of any
                  one or more terms of this Agreement on one or more occasions
                  shall not be deemed a waiver of that or any other term or
                  condition on that or any other occasion. Any waiver of a right
                  or remedy under this Agreement must be contained in writing
                  and signed by the waiving party.

         19.3.    APPRO agrees, in performing any work required by this
                  Agreement, not to discriminate against any worker because of
                  race, creed, color, sex, or national origin.

         19.4.    The rights and duties of the parties hereunder shall inure to
                  the benefit of and be binding upon their respective successors
                  and assigns.

         19.5.    Captions appear in this Agreement only for convenient
                  references and they shall not affect the meaning of any
                  provisions herein.

                                                                              14
<Page>

THE PURCHASER ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT, UNDERSTANDS IT AND
AGREES TO ALL TERMS AND CONDITIONS STATED HEREIN.

IN WITNESS WHEREOF, each party has executed this Agreement as of the day and
year first above written.

               APPRO SYSTEMS, INC.,

ATTEST:  /s/ Craig Uffman
       ---------------------------

By:      Craig Uffman
   -------------------------------

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

        LONG BEACH ACCEPTANCE CORP.

ATTEST   /s/ Kevin T. Riordan
      ----------------------------

By:      Kevin T. Riordan
   -------------------------------

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

                                                                              15
<Page>

EXHIBIT A - SYSTEM
CONFIGURATION

Purchaser shall provide Equipment in accordance with the APPRO Facility
Preparation Guide, as modified from time to time.

Based on information you provided, we recommend an APPRO MP-100 System with
the following configuration or with any other configuration that meets or
exceeds the performance of the following:

<Table>

<S>                   <C> <C>                                                             <C>
FILESERVER &          1   Compaq 486DX2/66, 16MB RAM, 2GB Hard Disk (a second             Supplied by
                          hard disk for duplexing is highly recommended)                  Purchaser
DATABASE SERVER       1   Compaq Proliant 2000 (or equivalent Pentium PC with             Supplied by
                          minimum of 64MB RAM, standard 340MB Hard Disk Drive             Purchaser
                          plus (2) additional 32-bit Fast SCSI II Controllers and
                          two (2) 4GB Hard Disk Drives (choice of Raid 1 or Raid 5
                          configuration)

                      1   MS-SQL Server software for Windows NT, Version 4.21a            Supplied by
                                                                                          Purchaser

                      1   MS-NT Server software V3.5 or higher                            Supplied by
                                                                                          Purchaser

                      1   Hayes Optima 14.4K (or 100% compatible) External modem          Supplied by
                          for SQL Server support                                          Purchaser

                      1   Best 1.4KV UPS w/Smart shutdown                                 Supplied by
                                                                                          Purchaser

PERSONNEL             Each Compaq 486DX/33, 16 MB RAM recommended                         Supplied by
                                                                                          Purchaser
WORKSTATIONS

CREDIT BUREAU         2   Compaq 486 DX/33, 16 MB RAM recommended                         Supplied by
                                                                                          Purchaser

SERVERS               2   Hayes Optima 14.4K External Modem (or 100% compatible)          Supplied by
                                                                                          Purchaser

                                                                              16
<Page>

OUTBOUND FAX          1   Compaq 486DX/33, 16 MB RAM & 120 MB Hard Disk                   Supplied by
                                                                                          Purchaser

SERVER(S)             2   Gammafax CPi Intelligent Fax Board & software                   Supplied by
                          (no substitutions)                                              Purchaser

                      2   RightFax V4.0 software licenses for # of boards used            Supplied by
                          (NT LAN requires NT version, OS/2 or Netware LAN                Purchaser
                          requires OS/2 Version)

DOCUMENT              1   Compaq 486DX2/66, 16 MB RAM & 120 MB Hard Disk                  Supplied by
                                                                                          Purchaser

SERVER(S)             1   MS-Word for Windows V6.0 & Windows for Workgroups V3.11         Supplied by
                                                                                          Purchaser

HOST INTERFACE/       1   Compaq 486DX/33, 16MB RAM recommended                           Supplied by
                                                                                          Purchaser

GATEWAY SERVER        1   3270 ICOT OmniPath 3270 Gateway products w/Ksaver option        Supplied by
                                                                                          Purchaser

                      1   3270 ICOT Gateway Operating Software for 5LU                    Supplied by
                                                                                          Purchaser

MONITORS              Each Compaq 14" Color SVGA Monitor (1 required for each             Supplied by
                           workstation)                                                   Purchaser

PRINTERS              1   HP Laser Printer IV w/ 8MB RAM                                  Supplied by
                                                                                          Purchaser

                                                                              17
<Page>

NETWORK &             1   Intel 12-Port EISA Hub Adapter (Includes NIC for Fileserver     Supplied by
                          and 2 Harmonica Connector Units),                               Purchaser

MISCELLANEOUS         Each Intel EtherExpress 16 NIC, 10BaseT cabling & connectors        Supplied by
                            (for all stations)                                            Purchaser

HARDWARE              Each MS-DOS 6.2 or later                                            Supplied by
                                                                                          Purchaser

                      1   Conner 4.0 GB, 4mm DAT Tape Drive & 5-pack of tapes             Supplied by
                                                                                          Purchaser

                      1   Crystal Reports V3.0 Software                                   Supplied by
                                                                                          Purchaser

                      1   PC Anywhere for DOS V5.0 or higher                              Supplied by
                                                                                          Purchaser

                      1   Best Systems 2.1 KVA Uninterruptible Power Supply               Supplied by
                                                                                          Purchaser

                      1   Hayes 14.4K External Modem (For Product Support Purposes)       Supplied by
                                                                                          Purchaser

                      1   Novell 386 3.12 Operating System (50 Nodes)                     Supplied by
                                                                                          Purchaser

TOTAL HARDWARE                                                                            Supplied by
                                                                                          Purchaser
</Table>

                                                                              18
<Page>

                                EXHIBIT B

<Table>
<Caption>

13-JUNE-95
PRODUCT NAME                                          QUANTITY              UNIT PRICE          EXTENDED PRICE
<S>                                                   <C>                  <C>                  <C>

LICENSED SOFTWARE TO BE SUPPLIED BY APPRO

APPRO W-100 V4.0 System Software                         1                  $50,000.00           $50,000.00

APPRO Auditor System 4.0 (Indirect Lending
Loan Verification, Cashing and Discounting)              1                  $15,000.00           $15,000.00

APPRO On-Line Carbook - Automated Car
Valuation Module (NADA, Bluebook or other
such approved vendor - excludes annual NADA
or other vendor subscription fee and APPRO
$40.00 monthly maintenance/update charge)                1                  $7,800.00             $7,800.00

TOTAL LICENSED SOFTWARE COSTS                                                                    $72,800.00

</Table>

                                                                              19
<Page>

                                  EXHIBIT C

<Table>
<Caption>

13-JUNE-95
PRODUCT NAME                                          QUANTITY              UNIT PRICE          EXTENDED PRICE
<S>                                                   <C>                  <C>                  <C>

CUSTOM SOFTWARE TO BE SUPPLIED BY APPRO
APPRO CONSULTING

INSTALLATION AND TRAINING

Three Weeks Total Training/Installation -
Two (2) Weeks On-Site, One Week for APPRO
System Administration Training in Baton Rouge,
plus two days Consulting. Excludes related travel
expenses and airfare/ (If WAN Installed, Additional
On-Site Time Will Be Billed Separately)                                                           $12,000.00

ESTIMATED COSTS OF CUSTOM SOFTWARE PRODUCTS TO BE SUPPLIED BY APPRO                               $12,000.00
</Table>

                                                                              20
<Page>

                                    EXHIBIT D

                              APPRO SYSTEMS, INC.,
               SOFTWARE MAINTENANCE AND SUPPORT SERVICES AGREEMENT

1.       SOFTWARE MAINTENANCE SERVICES

         APPRO Systems, Inc., shall provide and Purchaser agrees to the
         following software maintenance services free of charge:

         1.1.     Modifications to the Software which are designated by APPRO
                  Systems, Inc., as improvements, but not modifications
                  designated as enhancements for which APPRO Systems, Inc.,
                  charges separately.

         1.2.     Correction of Software errors to the extent reasonably
                  possible provided that all improvements previously provided to
                  User have been installed by User.

         1.3.     Updated documentation related to 1.1 and 1.2 above.

2.       SYSTEM SUPPORT SERVICES

         APPRO Systems, Inc., shall provide the following system support
         services for the term of this Agreement:

         2.1.     Telephone consulting and on-site support between the hours of
                  7 A.M. and 6 P.M. Central time, Monday through Friday (except
                  holidays).

         2.2.     APPRO Systems, Inc., will provide same day response or
                  within one (1) business day to software problems resulting in
                  either a solution or a status report and approach to resolving
                  the problem.

         2.3.     Telephone support after hours (i.e., 6:00 P.M., Central time,
                  Monday through Friday) or in excess of eight (8) hours per day
                  will be charged to the User at the rate of $200 per hour.*

         2.4.     Required on-site support time will be covered under this
                  Agreement, except as provided in 8.2 of the Purchase and
                  License Agreement. All associated travel expenses will be
                  billed separately at actual expense.

3.       FEES

         The above services shall be provided at a cost of Ten Thousand Nine
         Hundred and Twenty Dollars ($10,920.00) for one year, and thereafter
         adjusted annually as a per annum fee, in accordance with APPRO Systems,
         Inc.'s then-current price schedule.

Purchaser agrees that any charges for software maintenance or system services
not covered by this agreement or by a separate Premium Support Services
Agreement will be paid for within ten (10) days of receipt of invoices. Such
services shall be charged at APPRO Systems' normal consulting rate of $100 per
hour* if provided during normal hours or at $200 per hour if provided after
APPRO's normal operating hours as described in Paragraph 2 above.

                                                                              21
<Page>

                   ADDENDUM TO PURCHASE AND LICENSE AGREEMENT

LICENSEE NAME:
LICENSE NUMBER:

This Addendum to Purchase and License Agreement (the "Addendum") is made this 8
day of August, 1995, by and between LONG BEACH ACCEPTANCE CORP. (Purchaser"),
and APPRO Systems, Inc. ("APPRO").

Except as expressly set forth in this Addendum, the terms and conditions of
that certain Purchase and License Agreement previously entered into by and
between the parties (the "Agreement") will continue to govern the
relationship between the parties for all purposes.

1.       BACKGROUND

1.1.     NADA Services Corporation has developed a motor vehicle valuation
         software program known as NADASC and is in the business of licensing
         copies to subscribers along with regularly updated files containing
         used vehicle valuation information contained in the NADASC
         (collectively, "NADASC"). APPRO and NADASC have entered into an
         Agreement granting APPRO the rights to make NADASC operational on APPRO
         products and to grant non-exclusive, non-transferable sub-licenses to
         use NADASC.

2.       LICENSE GRANT

2.1.     APPRO hereby grants a non-exclusive non-transferable sub-license to use
         the object code version only of NADASC until this Agreement is
         terminated in accordance with its terms, or until Licensee ceases using
         the System, at which time NADASC and all copies shall either be
         returned to APPRO or destroyed and so certified in writing to APPRO.
         The license granted hereunder shall not permit Licensee to market, sub
         license, or utilize NADASC separate from or independent from the
         System.

3.       WARRANTIES

3.1.     Licensee expressly agrees that the use of NADASC and use of information
         generated by NADASC is at Licensee's sole risk. Neither NADASC nor
         APPRO warrants that the use of NADASC will be uninterrupted or error
         free; nor does NADASC or APPRO make any warranty as to the results to
         be obtained from the use of NADASC.

3.2.     NADASC IS DISTRIBUTED ON AN "AS IS" BASIS WITHOUT WARRANTIES OF ANY
         KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
         WARRANTIES OF TITLE OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS
         FOR A PARTICULAR PURPOSE OR USE. NEITHER APPRO NOR NADASC SHALL BE
         LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES
         ARISING OUT OF USE OF NADASC NEITHER APPRO NOR NADASC WARRANTS THE
         ACCURACY, TIMELINESS, COMPLETENESS OR USEFULNESS OF NADASC OR ANY
         INFORMATION CONTAINED THEREIN.

4.       COPYRIGHT

4.1.     Licensee may not reproduce, redistribute, re transmit, publish or
         otherwise transfer any information which the Licensee obtains from the
         use of NADASC.

4.2.     Licensee agrees not to disassemble, decompile, reverse engineer, or
         otherwise modify NADASC.

<Page>

4.3.     Licensee agrees that NADASC shall not be used as a data source from
         which a new valuation database or valuation system may be created, and
         that vehicles will be valued individually. Licensee further agrees that
         any change in the use of NADASC shall require the prior written consent
         of APPRO and NADASC.

4.4.     Licensee may make one backup copy of the NADASC using standard server
         back-up procedures. Licensee may use the NADASC solely at the
         Installation Site.

5.       CONFIDENTIALITY

5.1.     Licensee acknowledges and agrees that NADASC, the vehicle valuation
         contained therein, all enhancements and derivative works, are the sole
         property of NADASC and subject to a valid copyright. Licensee
         acknowledges that NADASC has created NADASC at great time and expense
         and the Data contain proprietary information protected by copyright and
         trade secret laws. Licensee further acknowledges that NADASC may suffer
         great harm if Licensee or its employees disclose NADASC to a third
         party. Licensee, therefore, agrees to:

         5.1.1.   hold NADASC in strict confidence;

         5.1.2.   disclose NADASC only to Licensee's employees to whom knowledge
                  is required for its proper use hereunder;

         5.1.3.   cause such employees to hold NADASC in strict confidence; and

         5.1.4.   take steps to prevent the accidental or otherwise unauthorized
                  disclosure of NADASC and the Data.

6.       DATA UPDATES

6.1.     During the Term of this Agreement and any extensions thereof, NADASC
         will provide to APPRO monthly updates to all or portions of NADASC by
         electronic media. APPRO will make such updates available to Licensee
         via electronic media. It shall be the responsibility of Licensee to
         ensure proper installation of such updates on the System in a timely
         manner.

7.       COMPENSATION

7.1.     Licensee agrees to pay APPRO subscription fees for use of NADASC
         according to the prevailing schedule of prices of APPRO.

8.       TERM

8.1.     This license is for a one year period and will then continue on an
         annual basis unless terminated by either party with written notice
         given and payment of all outstanding fees by Licensee.

   LICENSEE                                     APPRO SYSTEMS, INC.

By:  /s/ George S. Ginsberg, Vice President          /s/ Craig D. Uffman
   ----------------------------------------     --------------------------------

Name: George S. Ginsberg                          Craig D. Uffman
     --------------------------------------     --------------------------------

Title   Vice President                            Vice President
      -------------------------------------     --------------------------------

<Page>

                           APPLICATION FOR SERVICE

<Table>

<S>                                                               <C>
--------------------------------------------------------------------------------
Estimated Annual Accesses to NADASC and Data:
--------------------------------------------------------------------------------
Estimated Number of Workstations Having Access to
NADASC and Data:
--------------------------------------------------------------------------------
Monthly Service Fee                                                  $40
--------------------------------------------------------------------------------
Setup Fee
--------------------------------------------------------------------------------
Annual Block Fee                                                  $1,350
--------------------------------------------------------------------------------
Other
--------------------------------------------------------------------------------
Other
--------------------------------------------------------------------------------
Amount of advance payment to accompany application
(Setup Fee plus three times the Monthly Service Fee
plus the Annual Block Fee).                                       $1,830
--------------------------------------------------------------------------------

</Table>

It is understood that subscription for the applicant, if approved by APPRO
Systems, Inc. will not become effective until the Addendum to Purchase and
License Agreement has been duly executed by both the applicant and APPRO
Systems, Inc. and applicable fees have been paid.

Name of Applicant:       Long Beach Acceptance Corp.
                         -----------------------------

Authorized Signature:       /s/ George S. Ginsberg, Vice President
                         --------------------------------------------

Dated this 8 day of August, 1995 at 690 KINDERKAMACK RD., SUITE 203
                                   ORADELL, NJ 07649

APPRO SYSTEMS, INC.
By: _______________________

<Page>

                                   SOURCEFILE

                            SOFTWARE ESCROW AGREEMENT

                            (MULTIPLE BENEFICIARIES)

                  SourceFile Deposit Number:           7195
                                             --------------------------

     This Software Escrow Agreement is dated February 7th, 1996 and is by and
among the following parties:

SOURCEFILE:
                                       SourceFile, Inc.
                                       A California Corporation
                                       1350 West Grand Avenue
                                       Oakland, CA 94607
                                       Tel: (800) 237-2769
                                       Fax: (800) 928-7733
OWNER:
                                       APPRO Systems, Inc.
                                       A Louisiana Corporation
                                       9489 Interline Avenue
                                       Baton Rouge, LA 70809
                                       Tel: (504) 922-4713
                                       Fax: (504) 922-4777

BENEFICIARY:

                                       Each beneficiary registered under this
                                       Agreement as provided below.

1.       SOFTWARE. Owner is the owner of, or otherwise has right to, certain
         computer software and documentation identified in Exhibit A attached
         hereto. The term "Software" is used in this Agreement to mean the
         software identified in Exhibit A.

<Page>

         Whenever the context reasonably permits, the term "Software" shall also
         include the "Documentation" identified in Exhibit A.

2.       BUSINESS OF OWNER. Owner is the business of licensing the Software to
         its licensees. Owner desires to establish a Software escrow for the
         benefit of its licensees who desire to register with SourceFile.

3.       BENEFICIARIES. Each licensee of the Software who registers with
         SourceFile as provided in Section 5 shall be a "Beneficiary" under this
         agreement until such licensee ceases to be a Beneficiary as provided in
         Section 16. The term "Beneficiaries" means all such registered
         licensees.

4.       ESTABLISHMENT OF ESCROW. Owner hereby establishes a Software escrow
         with SourceFile to be governed by the terms and conditions of this
         Agreement. Such escrow is hereinafter referred to as the "Escrow."

5.       REGISTRATIONS. To register a licensee with SourceFile, the following
         procedures must be followed:

         (a)      Owner and licensee must complete and execute a "Certificate of
                  Registration" in the form of Exhibit B attached.

         (b)      The completed and executed Certificate of Registration must be
                  submitted to SourceFile.

         (c)      SourceFile will give written notice to Owner and licensee of
                  receipt of the Certificate of Registration.

6.       LICENSE AGREEMENT. Owner and Beneficiary have entered into one or more
         agreements identified in Beneficiary's Certificate of Registration
         pursuant to which Owner has licensed or authorized Beneficiary to use
         the Software. Such agreement(s) is (are) referred to herein as the
         "License Agreement." This Software Escrow Agreement is intended by the
         Parties to be supplementary to the License Agreement. Specifically, the
         Parties intend that this Software Escrow Agreement by an "agreement
         supplemental to any license agreement" within the meaning of Section
         365(n) of the U. S. Bankruptcy Code (11 U.S.C. 365(n)). If Owner is a
         debtor in possession or if a trustee under the U. S. Bankruptcy Code
         rejects this Agreement and/or the License Agreement, Beneficiary may
         elect to retain its rights as provided in Section 365(n).

7.       INITIAL DEPOSIT. Owner shall deliver to SourceFile the Initial Deposit
         described in Exhibit C.

8.       DEPOSIT UPDATES. Owner shall deliver to SourceFile Deposit Upgrades as
         described in Exhibit C.

<Page>

9.       DEPOSIT PROCEDURE. The Initial Deposit and each Deposit Update shall be
         made and delivered by Owner to SourceFile in accordance with the
         following:

         (a)      Owner shall clearly label and identify all materials and items
                  included in the deposit (i.e., Initial Deposit or Deposit
                  Update.)

         (b)      Owner shall complete SourceFile's then-current "Deposit
                  Inventory Form" for each deposit. The Deposit Inventory Form
                  must include a list clearly identifying all materials and
                  items included in the deposit so that SourceFile can cross-
                  reference the list with the labeling and identification by
                  Owner in (a) above.

         (c)      Owner shall deliver the deposit and Deposit Inventory Form to
                  SourceFile.

         (d)      After receiving the deposit and Deposit Inventory Form,
                  SourceFile will verify that the deposit includes the materials
                  and items identified in the Deposit Inventory Form. This
                  verification consists only of cross-referencing the list of
                  materials and items in the Deposit Inventory Form with the
                  labels and identification in the deposit. SourceFile is not
                  responsible for verifying the completeness, accuracy,
                  suitability, safety, quality, or content of the deposit.

         (e)      SourceFile shall give written notification to Owner and each
                  Beneficiary of the receipt of the deposit. If SourceFile
                  determines that there is a discrepancy between the deposit and
                  the Deposit Inventory Form, such notification shall include a
                  description of the discrepancy.

         (f)      Owner shall promptly correct any such discrepancy by making an
                  additional Deposit Update in accordance with this Section 9.

         (g)      SourceFile shall place the deposit in secure vault storage for
                  safekeeping.

10.      DEFINITION OF DEPOSIT. As hereinafter used, the term "Deposit" shall
         mean all materials and items delivered by Owner to SourceFile in
         accordance with Sections 7, 8 and 9. The "Deposit" shall cease to
         include any materials or items returned or destroyed in accordance with
         Section 11. The Parties agree that the Deposit compromises "embodiments
         of software" as that term is used in Section 365(n) of the U. S.
         Bankruptcy Code(11 U.S.C. 365(n)).

11.      REPLACEMENT OF OBSOLETE DEPOSIT MATERIALS. It is contemplated that over
         time certain of the materials or items in the Deposit may become
         obsolete, outdated, or redundant. To the extent that such materials or
         items become obsolete, outdated, or redundant because of Deposit
         Updates, Owner may identify for SourceFile the obsolete, outdated or
         redundant materials or items and instruct SourceFile to destroy or
         return the obsolete, outdated or redundant materials or items
         identified by Owner. Such identification shall be made in writing in
         the Deposit Inventory Form of a Deposit Update and must be consistent
         with the labeling and identification used by Owner under 9. (a)

<Page>

         above. SourceFile will give beneficiary written notice of Owner's
         instructions to return or destroy the identified materials or items. If
         SourceFile does not receive a written objection from Beneficiary within
         30 days of the date that such notice is mailed or otherwise delivered
         by to Beneficiary, then SourceFile shall return or destroy the
         materials or items in accordance with Owner's instructions. If
         Beneficiary objects in writing in a timely manner, then the matter
         shall be resolved by Owner and Beneficiary in accordance with Section
         19.

12.      RELEASE OF DEPOSIT - REQUEST OF BENEFICIARY. Beneficiary shall be
         entitled to receive a copy of the Deposit upon occurrence of the
         Release Condition described in Exhibit D. Upon occurrence of the
         Release Condition, the following procedure shall apply:

         (a)      Beneficiary shall give written notice to SourceFile informing
                  SourceFile that the Release Conditions has occurred, shall
                  request SourceFile in writing to release a copy of the Deposit
                  to Beneficiary, and shall pay the non-refundable Release Fee
                  to SourceFile.

         (b)      After all the conditions in 12. (a) have been met, SourceFile
                  shall promptly give Owner written notice of Beneficiary's
                  notice and request for release.

         (c)      If Owner does not dispute Beneficiary's right to a copy of the
                  Deposit within two weeks of receipt of the notice from
                  SourceFile, then SourceFile shall release a copy of the
                  Deposit to Beneficiary.

         (d)      If Owner disputes Beneficiary's right to a copy of the
                  Deposit, then Owner must be given written notice of such
                  dispute to SourceFile prior to the conclusion of the two-week
                  period. If SourceFile receives such timely notice of dispute,
                  SourceFile will not release a copy of the Deposit to
                  Beneficiary until the dispute is resolved by Owner and
                  Beneficiary in accordance with Section 19. Such resolution
                  will determine whether or not Beneficiary is entitled to
                  receive from SourceFile a copy of the Deposit.

         (e)      SourceFile has no obligation to determine whether or not
                  Beneficiary is entitled to a copy of the Deposit. SourceFile
                  may rely upon the resolution reached in accordance with
                  Section 19.

13.      RELEASE OF DEPOSIT - OWNER'S INSTRUCTIONS. Upon receipt of written
         instruction from Owner and the receipt of the Reduced Release Fee,
         SourceFile shall release a copy of the Deposit to each Beneficiary
         designated in the instruction.

14.      USE OF RELEASED DEPOSIT. If a copy of the Deposit is released to
         Beneficiary under Section 12 or 13, Beneficiary may only use the
         deposit as permitted in Exhibit D.

<Page>

15.      FEES. SourceFile shall receive the following fees and payments.

         (a)      INITIAL FEE, Upon execution of this Agreement, Owner shall pay
                  the Initial Fee to SourceFile. The Initial Fee includes
                  payment for establishment of the Escrow and for the first year
                  of the Escrow.

         (b)      ANNUAL RENEWAL FEE. Until termination of the Escrow, Owner
                  shall pay to SourceFile, an Annual Renewal Fee payable in
                  advance of the year for which it is applicable.

         (C)      BENEFICIARY FEES. Each Beneficiary must pay a Registration Fee
                  to SourceFile at the time of registration. This entitles the
                  Beneficiary to registration for the remainder of the contract
                  year in which the Registration Fee is paid. Thereafter and
                  until the Beneficiary ceases to be a "Beneficiary" (see
                  Section 16), the Beneficiary shall pay to SourceFile an Annual
                  Beneficiary Fee.

         (d)      DEPOSIT UPDATE FEE. Owner is entitled to make four Deposit
                  Updates per contract year at no extra charge. If Owner makes
                  more than four Deposit Updates in a contract year, Owner shall
                  pay the Deposit Update Fee to SourceFile for each extra
                  Deposit Update. The Deposit Update Fee is payable in advance.

         (e)      RELEASE FEE. Each Beneficiary requesting a release of a copy
                  of the Deposit under Section 12 shall pay the Release Fee to
                  SourceFile. If copies of the Deposit are released at the
                  instruction of Owner under Section 13, Owner shall pay a
                  Reduced Release Fee to SourceFile for each Beneficiary
                  receiving a copy of the Deposit. The Reduced Release Fee shall
                  equal thirty percent (30%) of the Release Fee.

         (f)      EXCESS STORAGE CHARGES. If the vault storage requirement for
                  the Deposit exceeds two cubic feet, then Owner will pay the
                  Excess Storage Charge.

         (g)      INCREASES. All Fees and Charges are subject to increase by
                  SourceFile upon advance written notice to Owner and
                  Beneficiary. SourceFile's then-current Fees and Charges shall
                  be payable. There shall be no increase during the first
                  contract year. The Fees and Charges in effect on the date of
                  this Agreement are set forth in Exhibit E. Increases in Fees
                  shall not exceed the annual percentage increases in the
                  Consumer Price Index - All Items and Major Group Figures for
                  All Urban Consumers (1982-84=100).

         (h)      COSTS. Each Beneficiary shall pay SourceFile for reasonable
                  costs incurred by SourceFile in producing and delivering
                  copies of the Deposit to the Beneficiary. All other costs
                  reasonably incurred by SourceFile in connection with this
                  Agreement are reimbursable by Owner to SourceFile. Costs are
                  not included in the above Fees and Charges and are payable in
                  addition to the above Fees and Charges.

<Page>

16.      TERMINATION OF BENEFICIARY'S REGISTRATION. Beneficiary's registration
         will terminate and Beneficiary will cease to be a "Beneficiary" under
         this Agreement if any of the following occurs:

         (a)      Beneficiary gives written notice of such termination to
                  SourceFile.

         (b)      The License Agreement terminates. In the event of such
                  termination, Beneficiary and Owner will give written notice
                  thereof to SourceFile.

         (c)      Beneficiary breaches this Agreement or fails to make payment
                  to SourceFile as provided in this Agreement and does not cure
                  breach or make such payment within 15 days of written notice
                  of such breach or failure.

         (d)      The Escrow terminates.

SourceFile will have no obligation or liability to Beneficiary after such
termination. Termination a Beneficiary's registration shall not affect the
other Beneficiaries.

17.      TERMINATION OF ESCROW. This Escrow may be terminated by either Owner or
         SourceFile upon 90 days advance written notice of termination to the
         other Party and to Beneficiary. Upon termination the following shall
         apply:

         (a)      SourceFile shall either return the Deposit to Owner or destroy
                  the Deposit, whichever Owner requests. If destruction is
                  requested, SourceFile will certify in writing to Owner that
                  such destruction has occurred.

         (b)      SourceFile shall have no obligation or liability to Owner or
                  Beneficiary after termination.

18.      ESTABLISHMENT OF SUBSTITUTE ESCROW. During the 90 day period under
         Section 17, Owner shall establish a substitute Software escrow with a
         third party escrow agent for the benefit of Beneficiary. The substitute
         Software escrow must be approved by Beneficiary but such approval will
         not be unreasonably withheld or delayed. If necessary, this matter
         shall be resolved in accordance with Section 19. If more than 90 days
         is needed to establish the substitute Software escrow and if SourceFile
         receives written notice from Owner or Beneficiary of such need prior to
         the end of such 90 days, then the 90 day period under Section 17 shall
         be extended as reasonably necessary and the Escrow shall not terminate
         until SourceFile receives written notice from Owner that the substitute
         Software escrow has been established and approved. Notwithstanding the
         foregoing, SourceFile may terminate the Escrow is SourceFile does not
         continue to receive payments to which it is entitled under this
         Agreement.

19.      DISPUTE RESOLUTION. In the event of a dispute the parties shall resolve
         the dispute pursuant to the terms of the Licensing Agreement. Any and
         all disputes shall be resolved

<Page>

         according to Louisiana law and venue for any such action shall be in
         the Middle District of Louisiana.

20.      PROTECTION OF THE DEPOSIT.

         (a)      SourceFile shall keep the Deposit in vault storage.

         (b)      SourceFile shall not disclose or reveal the Deposit or any
                  part thereof to any other person except as provided in this
                  Agreement.

         (c)      If any of the materials or items comprising the Deposit are
                  damaged, destroyed or lost by fire, theft, accident, or other
                  mishap or cause, Owner shall submit to SourceFile such Deposit
                  Updates as are necessary to replace the damaged, destroyed or
                  lost materials or items. There shall be no Deposit Update Fees
                  charged to Owner for such updates.

21.      PROTECTION OF SOURCEFILE.

         (a)      NO OTHER OBLIGATIONS. This Agreement expressly sets forth all
                  the duties and obligations of SourceFile with respect to any
                  and all matters relating to this Agreement, the Escrow or the
                  Deposit. SourceFile has not implied duties or obligations.
                  SourceFile has not obligation under the License Agreement or
                  any other agreement between the other Parties hereto except
                  for this Software Escrow Agreement.

         (b)      INDEMNIFICATION. SourceFile shall not be liable, except for
                  its own gross negligence or willful misconduct. Except with
                  respect to claims based upon such gross negligence or willful
                  misconduct that are successfully asserted against SourceFile,
                  the other Parties hereto shall jointly and severally indemnify
                  and hold harmless SourceFile and its directors, officers,
                  employees, shareholders, and representatives from and against
                  any and all liabilities, claims, actions, judgments, damages,
                  losses and expenses, including attorneys' fees, arising out of
                  or relating to this Software Escrow Agreement, the Escrow, or
                  the Deposit.

         (c)      DEPOSITORY ONLY. SourceFile acts hereunder as a depository
                  only and is not responsible or liable for the completeness,
                  accuracy, suitability, safety, quality, content, sufficiency,
                  correctness, genuineness or validity of the Deposit or any
                  document submitted to SourceFile or the execution of the same
                  or the identity, authority, or rights of any person executing
                  or depositing the same.

         (d)      UNCERTAINTY. Notwithstanding anything in this Agreement to the
                  contrary, if SourceFile is uncertain as to any duty,
                  obligation, demand, or right, SourceFile may hold the deposit
                  and refrain from taking any action and wait for a final
                  resolution under Section 19 or a court order.

<Page>

         (e)      RELIANCE. SourceFile shall not incur any liability in acting
                  upon any notice, request, waiver, consent, receipt or other
                  paper or document believed by SourceFile to be genuine or to
                  be signed by the proper party or parties, or in acting upon
                  any resolution under Section 19 or any court order.

         (f)      LEGAL COUNSEL. SourceFile may consult with legal counsel in
                  the event of any dispute or question as to its duties or
                  obligations hereunder and shall not be held to any liability
                  for acting in accordance with advise so received.

         (g)      EXTRAORDINARY SERVICES. In addition to the Fees and Charges
                  for the usual services of SourceFile under this Agreement (see
                  Section 15 and Exhibit E), SourceFile shall be entitled to
                  additional compensation should SourceFile be requested or
                  required to perform any additional or extraordinary service;
                  and SourceFile shall be reimbursed for any out-of-pocket
                  expenses (including, without limitation, fees of counsel)
                  reasonably incurred in connection with such additional or
                  extraordinary services. Extraordinary services include, but
                  are not limited to, any involvement of SourceFile, at the
                  request or demand of Owner or Beneficiary, in any dispute
                  resolution between Owner and Beneficiary.

         (h)      COMPLIANCE. SourceFile shall have no responsibility to insure
                  compliance by any Beneficiary with Section 14.

         (i)      DISCLAIMER. SOURCEFILE MAKES NO WARRANTY NOT EXPRESSLY SET
                  FORTH HEREIN. ANY IMPLIED WARRANTIES ARE DISCLAIMED AND
                  EXCLUDED BY SOURCEFILE.

         (j)      LIMITATIONS ON LIABILITY. FOR ANY AND ALL CLAIMS AND CAUSES
                  OF ACTION (INCLUDING WITHOUT LIMITATION BREACH OF CONTRACT,
                  TORT, FRAUD, MALPRACTICE, ETC.) SOURCEFILE'S AGGREGATE
                  LIABILITY TO OWNER SHALL NOT EXCEED THE TOTAL AMOUNT PAID BY
                  OWNER TO SOURCEFILE UNDER THIS AGREEMENT AND SOURCEFILE'S
                  AGGREGATE LIABILITY TO A BENEFICIARY SHALL NOT EXCEED THE
                  TOTAL AMOUNT PAID BY THE BENEFICIARY TO SOURCEFILE
                  UNDER THIS AGREEMENT. IN NO EVENT SHALL SOURCEFILE BE LIABLE
                  FOR ANY CONSEQUENTIAL, INCIDENTAL, EXEMPLARY, SPECIAL, OR
                  PUNITIVE DAMAGES.

         (k)      ALLOCATION OF RISK. This Agreement in general, and this
                  Section 21 in particular, defines a mutually agreed-upon
                  allocation of risk and the Fees payable to SourceFile have
                  been reduced to reflect this allocation of risk.

22.      GENERAL PROVISIONS.

         (a)      INTERPRETATION. Section and subsection headings are used for
                  convenience of reference only and shall not limit or affect
                  any interpretation of any section or

<Page>

                  subsection. The language used in this Agreement is the
                  language chosen by the Parties to express their mutual intent,
                  and no rule or strict construction shall be applied by any
                  Party.

         (b)      ENTIRE AGREEMENT. This Agreement constitutes the entire
                  Agreement of the Parties relating to the Escrow.

         (c)      NON-WAIVER. The failure of SourceFile to insist upon strict
                  compliance with the terms hereof by Owner and Beneficiary in
                  any instance, shall not constitute a waiver of SourceFile's
                  right to subsequently require strict compliance with the terms
                  of this Agreement.

         (d)      GOVERNING LAW. This Agreement is made and entered into in the
                  state of Louisiana. This Agreement, the Escrow and the
                  relationship of SourceFile with the Owner and Beneficiary
                  shall be governed and construed under and in accordance with
                  the laws of the state of Louisiana. Furthermore, in the event
                  of any dispute between SourceFile and Owner or between
                  SourceFile and Beneficiary, such dispute shall be conducted in
                  Baton Rouge, Louisiana and the Parties hereby agree and submit
                  to such jurisdiction and venue.

         (e)      NOTICES. All notices and other communications under this
                  Agreement shall be in writing and shall be delivered
                  personally or by registered or certified mail or by commercial
                  courier or by facsimile transmission to the address or fax
                  number indicated for the intended Party at the beginning of
                  this Agreement or, in the case of Beneficiary, on
                  Beneficiary's Certificate of Registration, to such substitute
                  address or fax number as any party may designate for itself by
                  proper notice to the other Parties.

         (f)      MODIFICATION. This Agreement may only be modified, amended or
                  rescinded by a writing signed by all affected Parties.

         (g)      FORCE MAJEURE. Except for obligations to make payment, no
                  Party shall be liable for any failure to perform arising from
                  causes beyond its control, including, but not limited to,
                  fire, storm, flood, earthquake, explosion, accident, acts of
                  public enemies, war, insurrection, sabotage, illness, labor
                  disputes or shortages, product shortages, failure or delays in
                  transportation, inability to secure materials, parts or
                  equipment, acts of God, or acts of any governmental authority
                  or agency thereof.

         (h)      BINDING. This Agreement shall be binding upon the Parties and
                  their permitted successors, assigns and trustees.

<Page>

         (i)      EXECUTION. This Agreement may be executed in any number of
                  counterparts, each of which shall be deemed an original, but
                  all of which taken together shall constitute one and the same
                  instrument. The persons signing below represent that they are
                  duly authorized to execute this Agreement for and on behalf of
                  the Party for whom they are signing.

READ, AGREED TO AND ACCEPTED BY:

         Appro  Systems, Inc.                                        (OWNER)
         ------------------------------------

         BY (SIGNATURE):              /s/ Craig D. Uffman
                          ---------------------------------------------------
         NAME (PRINT):                CRAIG D. UFFMAN
                          ---------------------------------------------------
         TITLE:                       VICE PRESIDENT
                          ---------------------------------------------------

SOURCEFILE

         BY (SIGNATURE):             /s/ T.R. Morehouse
                          ---------------------------------------------------
         NAME (PRINT):               T.R. MOREHOUSE
                          ---------------------------------------------------
         TITLE:                      PRESIDENT
                          ---------------------------------------------------

<Page>

                                    EXHIBIT A

                                    SOFTWARE

APPRO MP-100 V4.0 System Software
APPRO Auditor System V4.0
APPRO OnLine Carbook
APPRO Advanced Report Writer
APPRO Electronic Archiving
APPRO New Account Setup Module for batch upload of new
             account records to Hogan Host Database via 3270 emulation gateway
APPRO WAN License
Implementation of Fair Isaac Revolving Credit Scorecard
Implementation of Fair Isaac Indirect Loan Pooled Data Scorecard

                                  DOCUMENTATION

APPRO Concepts Manual
APPRO Application Origination Manual
APPRO Analyst Manual
APPRO System Administration Manual

<Page>

                                    EXHIBIT A

                                    SOFTWARE

                                  DOCUMENTATION

<Page>

                                   EXHIBIT B

                           CERTIFICATE OF REGISTRATION

         SourceFile Deposit Number: ___________________________________

Owner:                  __________________________________________________

                        __________________________________________________

Beneficiary:            __________________________________________________

                        __________________________________________________

                        __________________________________________________

                        Tel:______________________________________________

                        Fax:______________________________________________

Beneficiary's Contact Person:_____________________________________________

This Certificate of Registration applies to the above identified SourceFile
Deposit and the Software Escrow Agreement dated ___________________, 19_____
to which Owner and SourceFile ("SourceFile") are parties (the "Escrow
Agreement").

Owner and Beneficiary have entered into one or more other agreements identified
below:

         _____________________________________________________________________
         _____________________________________________________________________
         _____________________________________________________________________
         _____________________________________________________________________

Such agreement(s) (including addendums or amendments thereto, if any) is
(are) referred to in the Escorts Agreement as the "License Agreement."

Beneficiary has received and reviewed a copy of the Escrow Agreement.
Beneficiary agrees to the terms and conditions of the Escrow Agreement and is
hereby made a Party thereto. Beneficiary is entitled to the rights and
benefits of a "Beneficiary" under the Escrow Agreement and accepts the
obligations of a "Beneficiary" under the Escrow Agreement.

AGREED AND ACCEPTED BY:

OWNER                                  BENEFICIARY

By:_______________________________     By:________________________________

Title:____________________________     Title:_____________________________

Date:_____________________________     Date:______________________________

<Page>

                                    EXHIBIT C

                                 INITIAL DEPOSIT

                                 DEPOSIT UPDATES

Owner shall update the Deposit by submitting to SourceFile all of the
materials and items identified above for any new versions of the Software
provided by Owner to Beneficiary under the License Agreement.

<Page>

                                    EXHIBIT D

                               RELEASE CONDITIONS

The "Release Condition" shall be deemed to have occurred if any one of more
of the following conditions is satisfied.

1.       Owner becomes insolvent or admits insolvency or admits a general
         liability to pay its debts as they become due.

2.       Owner files a petition for protection under the Bankruptcy Code of the
         United States.

3.       An involuntary petition is filed against Owner an is not dismissed
         within 90 days thereafter.

4.       Owner fails to maintain the Software as obligated in the License
         Agreement and does not correct such failure within 60 days of receipt
         of written notice from Beneficiary of such failure.

                        PERMITTED USE OF RELEASED DEPOSIT

In the event that a copy of the Deposit is released to Beneficiary, the
following shall apply:

1.       Beneficiary may only use the Deposit to maintain the Software. The
         maintained Software may be used in accordance with the License
         Agreement.

2.       Beneficiary may not disclose the Deposit to any third party and shall
         keep the Deposit confidential.

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