Document:

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                                  EXHIBIT 10.6

                               Lease Agreement for
               1525 Valley Center Parkway, Bethlehem, Pennsylvania

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                       FIRST AMENDMENT TO LEASE AGREEMENT

          This First Amendment is made this 23rd day of December, 2003, by and
between LIBERTY PROPERTY LIMITED PARTNERSHIP, a Pennsylvania limited partnership
(hereinafter "Landlord"), and SYNCHRONOSS TECHNOLOGIES, INC., a Delaware
corporation (hereinafter "Tenant").

          WHEREAS, Landlord and Tenant entered into that certain Lease Agreement
dated January 31, 2002 (the "Lease"), relating to premises containing
approximately 22,000 rentable square feet (the "Premises") located in the
building known and identified as 1525 Valley Center Parkway, Bethlehem,
Pennsylvania (the "Building"); and

          WHEREAS, Tenant desires to lease additional space in the Building for
a term of one (1) year and Landlord has agreed thereto.

          NOW, THEREFORE, the parties hereto agree as follows;

          1. All capitalized terms used herein and not otherwise defined herein
shall have the meanings ascribed to them in the Lease.

          2. For the period January 1, 2004 through December 31, 2004 (the
"Additional Premises Term"), the "Premises" under the Lease shall consist of
both the approximately 22,000 rentable square feet currently leased by Tenant
and an additional approximately 2,605 rentable square feet which is illustrated
on Exhibit "A" attached hereto (the "Additional Premises"). The Additional
Premises shall be delivered to Tenant on January 1, 2004 and accepted by Tenant
in its "as is" "where is" condition and Landlord shall have no obligations
whatsoever to improve same for Tenant's use and occupancy.

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          3. Commencing on January 1, 2004 (the "Effective Date") and continuing
during the Additional Premises Term, Tenant shall pay Minimum Annual Rent for
the Additional Premises, at the times and in the manner provided in the Lease,
in the amount of $39,075.00 in monthly installments of $3,256.25.

          4. Commencing on the Effective Date and continuing during the
Additional Premises Term, Tenant shall pay Estimated Annual Operating Expenses
for the Additional Premises, at the times and in the manner provided in the
Lease, in the amount of $21,256.80 in monthly installments of $1,771.40, subject
to adjustment and reconciliation as set forth in the Lease.

          5. Tenant's Proportionate Share with respect to the Additional
Premises shall be 3.47%.

          6. The Expiration Date for the leasing of the Additional Premises
shall be December 31, 2004. Failure of Tenant to vacate the Additional Premises
on or before December 31, 2004, without Landlord's prior written approval, shall
be subject to the holdover provisions of the Lease.

          7. Except as expressly modified hereby, the Lease shall remain in full
force and effect in accordance with its terms. Specifically, without limitation,
in the event of any default by Tenant of any of its obligations under the Lease,
as hereby amended, Landlord may pursue all remedies available under the Lease or
otherwise at law or in equity. Accordingly, Tenant agrees to the following:

               (a) When the Lease, as hereby amended, and the Term or any
extension thereof shall have been terminated on account of any default by
Tenant, or when the

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Term or any extension thereof shall have expired, Tenant hereby authorizes any
attorney of any court of record of the Commonwealth of Pennsylvania to appear
for Tenant and for anyone claiming by, through or under Tenant and to confess
judgment against all such parties, and in favor of Landlord, in ejectment and
for the recovery of possession of the Premises, for which the Lease, as hereby
amended, or true and correct copies thereof shall be good and sufficient
warrant. AFTER THE ENTRY OF ANY SUCH JUDGMENT, A WRIT OF POSSESSION MAY BE
ISSUED THEREON WITHOUT FURTHER NOTICE TO TENANT AND WITHOUT A HEARING. If for
any reason after such action shall have been commenced it shall be determined
and possession of the Premises remain in or be restored to Tenant, Landlord
shall have the right for the same default and upon any subsequent default(s) or
upon the termination of the Lease or Tenant's right of possession as herein set
forth, to again confess judgment as herein provided, for which the Lease, as
hereby amended, or true and correct copies thereof shall be good and sufficient
warrant.

               (b) If Tenant shall default in the payment of the Rent due under
the Lease, as hereby amended, Tenant hereby authorizes any attorney of any court
of record of the Commonwealth of Pennsylvania to appear for Tenant and to
confess judgment against Tenant, and in favor of Landlord, for all sums due
hereunder plus interest, costs and an attorney's collection commission equal to
the greater of 10% of all such sums or $1,000, for which the Lease, as hereby
amended, or a true and correct copy thereof shall be good and sufficient
warrant. TENANT UNDERSTANDS THAT THE FOREGOING PERMITS LANDLORD TO ENTER A
JUDGMENT AGAINST TENANT WITHOUT PRIOR NOTICE OR HEARING. ONCE SUCH A JUDGMENT
HAS BEEN ENTERED AGAINST TENANT, ONE OR MORE WRITS OF EXECUTION OR WRITS OF
GARNISHMENT MAY BE

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ISSUED THEREON WITHOUT FURTHER NOTICE TO TENANT AND WITHOUT A HEARING, AND,
PURSUANT TO SUCH WRITS, LANDLORD MAY CAUSE THE SHERIFF OF THE COUNTY IN WHICH
ANY PROPERTY OF TENANT IS LOCATED TO SEIZE TENANT'S PROPERTY BY LEVY OR
ATTACHMENT. IF THE JUDGMENT AGAINST TENANT REMAINS UNPAID AFTER SUCH LEVY OR
ATTACHMENT, LANDLORD CAN CAUSE SUCH PROPERTY TO BE SOLD BY THE SHERIFF EXECUTING
THE WRITS, OR, IF SUCH PROPERTY CONSISTS OF A DEBT OWED TO TENANT BY ANOTHER
ENTITY, LANDLORD CAN CAUSE SUCH DEBT TO BE PAID DIRECTLY TO LANDLORD IN AN
AMOUNT UP TO BUT NOT TO EXCEED THE AMOUNT OF THE JUDGMENT OBTAINED BY LANDLORD
AGAINST TENANT, PLUS THE COSTS OF THE EXECUTION. Such authority shall not be
exhausted by one exercise thereof, but judgment may be confessed as aforesaid
from time to time as often as any of said rental and other sums shall fall due
or be in arrears, and such powers may be exercised as well after the expiration
of the initial Term of the Lease, as hereby amended, and during any extended or
renewal Term of the Lease, as hereby amended, and after the expiration of any
extended or renewal Term of the Lease as hereby amended.

               (c) The warrants of attorney to confess judgment set forth above
shall continue in full force and effect and be unaffected by amendments of the
Lease or other agreements between Landlord and Tenant even if any such
amendments or other agreements increase Tenant's obligations or expand the size
of the Premises. Tenant waives any procedural errors in connection with the
entry of any such judgment or in the issuance of any one or more writs of
possession or execution or garnishment thereon.

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               (d) TENANT KNOWINGLY AND EXPRESSLY WAIVES (I) ANY RIGHT,
INCLUDING, WITHOUT LIMITATION, UNDER ANY APPLICABLE STATUTE, WHICH TENANT MAY
HAVE TO RECEIVE A NOTICE TO QUIT PRIOR TO LANDLORD COMMENCING AN ACTION FOR
REPOSSESSION OF THE PREMISES AND (II) ANY RIGHT WHICH TENANT MAY HAVE TO NOTICE
AND TO HEARING PRIOR TO A LEVY UPON OR ATTACHMENT OF TENANT'S PROPERTY OR
THEREAFTER.

          8. Tenant acknowledges and agrees that the Lease is in full force and
effect and Tenant has no claims against Rent due or to become due thereunder.

          9. This First Amendment shall be binding upon and inure to the benefit
of the parties and their respective successors and permitted assigns.

          IN WITNESS WHEREOF, the parties hereto, intending to be legally bound
hereby, have caused this First Amendment to Lease Agreement to be duly signed
the day and year first above written.

                                         LIBERTY PROPERTY LIMITED PARTNERSHIP,
                                         BY ITS SOLE GENERAL PARTNER, LIBERTY
                                         PROPERTY TRUST

                                         By: /s/ Robert L. Kiel
                                             -----------------------------------
                                             Robert L. Kiel
                                             Senior Vice President, Regional
                                             Director

                                         SYNCHRONOSS TECHNOLOGIES, INC.

                                         By: /s/ LAWRENCE R. IRVING
                                             -----------------------------------
                                         Name: LAWRENCE R. IRVING
                                         Title: CFO

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                      1525 VALLEY CENTER PARKWAY - 2,605 SF
                               Bethlehem, PA 18017

                                  (FLOOR PLAN)

 1510 VALLEY CENTER PARKWAY SUITE 240 BETHLEHEM PA 610-867-9100 FAX 610-867-7556

                                   EXHIBIT "A"

<PAGE>

                                 LEASE AGREEMENT

                              (Multi-Tenant Office)

INDEX

<TABLE>
<CAPTION>
SECTION                              SECTION                                PAGE
-------                              -------                                ----
<S>                                                                         <C>
1.  Summary of Terms and Certain Definitions.............................     l
2.  Premises.............................................................     2
3.  Acceptance of Premises...............................................     2
4.  Use; Compliance......................................................     2
5.  Term.................................................................     2
6.  Minimum Annual Rent..................................................     2
7.  Operation of Property; Payment of Expenses...........................     3
8.  Signs................................................................     5
9.  Alterations and Fixtures.............................................     5
10. Mechanics' Liens.....................................................     5
11. Landlord's Right to Relocate Tenant; Right of Entry..................     5
12. Damage by Fire or Other Casualty.....................................     6
13. Condemnation.........................................................     6
14. Non-Abatement of Rent................................................     6
15. Indemnification of Landlord..........................................     6
16. Waiver of Claims.....................................................     7
17. Quiet Enjoyment......................................................     7
18. Assignment and Subletting............................................     7
19. Subordination; Mortgagee's Rights....................................     7
20. Recording; Tenant's Certificate......................................     8
21. Surrender; Abandoned Property........................................     8
22. Curing Tenant's Defaults.............................................     8
23. Defaults - Remedies..................................................     8
24. Representations of Tenant............................................    10
25. Liability of Landlord................................................    10
26. Interpretation; Definitions..........................................    10
27. Notices..............................................................    11
28. Security Deposit.....................................................    11
</TABLE>

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RIDER

<TABLE>
<CAPTION>
SECTION                              SECTION                                PAGE
-------                              -------                                ----
<S>                                                                         <C>
29. PA Additional Remedies...............................................    R-l
30. Condition of Premises................................................    R-2
31. Additional Provisions Relating to Minimum Annual Rent and
    Definition of "Lease Year"...........................................    R-2
32. Option to Extend Term................................................    R-3
33. Additional Provisions Relating to Premises...........................    R-4
34. Additional Provisions Relating to Operation of Property; Payment
    of Expenses..........................................................    R-5
35. Additional Provisions Relating to Signs..............................    R-5
36. Additional Provisions Relating to Landlord's Right to Relocate
    Tenant; Right of Entry...............................................    R-6
37. Additional Provisions Relating to Assignment and Subletting..........    R-6
38. Additional Provisions Relating to Subordination......................    R-6
39. Additional Provisions Relating to Surrender..........................    R-6
40. Additional Provisions Relating to Defaults - Remedies................    R-6
41. Additional Provisions Relating to Security Deposit...................    R-7
42. Additional Provisions Relating to Building Rules.....................    R-7
43. Tenant's Special Right of Early Termination..........................    R-8
44. Additional Space.....................................................    R-8
</TABLE>

<PAGE>

     THIS LEASE AGREEMENT is made by LIBERTY PROPERTY LIMITED PARTNERSHIP, a
Pennsylvania Limited Partnership ("LANDLORD") with its address at 1510 Valley
Center Parkway, Suite 240, Bethlehem, PA, 18017 and SYNCHRONOSS TECHNOLOGIES,
INC., a corporation organized under the laws of Delaware ("TENANT") with its
address at 1525 Valley Center Parkway, Bethlehem, PA 18017 and is dated as of
the date on which this lease has been fully executed by Landlord and Tenant.

1. SUMMARY AND CERTAIN DEFINITIONS.

     (A)  "PREMISES": Approximate rentable square feet: 22,000
          (Section 2)

     (B)  "BUILDING": Approximate rentable square feet: 75,000
          (Section 2) Address: 1525 Valley Center Parkway
                               Bethlehem, PA 18017
                               (HANOVER TOWNSHIP, NORTHAMPTON COUNTY)

     (C)  "TERM": Ninety-one(91) months (Section 5).

          (i) "COMMENCEMENT DATE": February 1, 2002.

          (ii) "EXPIRATION DATE": See Section 5.

     (D)  MINIMUM RENT (Section 6) & OPERATING EXPENSES (Section 7).

          (i) "MINIMUM ANNUAL RENT": See Section 31.

          (ii) ESTIMATED "ANNUAL OPERATING EXPENSES": $153,120.00 (One Hundred
Fifty-Three Thousand One Hundred Twenty and 00/100 Dollars), payable in monthly
installments of $12,760.00 (Twelve Thousand Seven Hundred Sixty and 00/100
Dollars), subject to adjustment [Section 7(a)].

     (E)  "PROPORTIONATE SHARE" [Section 7(a)]: 29.33% (ratio of approximate
                                                       rentable square feet in
                                                       the Premises to
                                                       approximate rentable
                                                       square feet in the
                                                       Building).

     (F) "USE" (Section 4): General business office use.

     (G)  "SECURITY DEPOSIT" (Section 28): $96,249.99 (Ninety-Six Thousand Two
          Hundred Forty-Nine and 99/100 Dollars). See Section 41.

     (H)  CONTENTS: This lease consists of the Index, pages 1 through 11
                    containing Sections 1 through 28 and the following, all of
                    which are attached hereto and made a part of this lease:
                    Rider with Sections 29 through 44.
                    Exhibits: "A" - Plan showing Premises
                              "B" - Commencement Certificate Form
                              "C" - Building Rules
                              "D" - Cleaning Schedule
                              "E" - Tenant Estoppel Certificate

<PAGE>

2. PREMISES. Landlord hereby leases to Tenant and Tenant hereby leases from
Landlord the Premises as shown on attached Exhibit "A" within the Building (the
Building and the lot on which it is located, the "PROPERTY"), together with the
non-exclusive right with Landlord and other occupants of the Building to use all
areas and facilities provided by Landlord for the use of all tenants in the
Property including any lobbies, hallways, driveways, sidewalks and parking,
loading and landscaped areas (the "COMMON AREAS").

3. ACCEPTANCE OF PREMISES. Tenant has examined and knows the condition of the
Property, the zoning, streets, sidewalks, parking areas, curbs and access ways
adjoining it, visible easements, any surface conditions and the present uses,
and Tenant accepts them in the condition in which they now are, without relying
on any representation, covenant or warranty by Landlord. Tenant and its agents
shall have she right, at Tenant's own risk, expense and responsibility, at all
reasonable times prior to the Commencement Date, to enter the Premises for the
purpose of taking measurements and installing its furnishings and equipment;
provided that the Premises are vacant and Tenant obtains Landlord's prior
written consent.

4. USE; COMPLIANCE.

     (A) PERMITTED USE. Tenant shall occupy and use the Premises for and only
for the Use specified in Section 1(f) above and in such a manner as is lawful,
reputable and will not create any nuisance or otherwise interfere with any other
tenant's normal operations or the management of the Building. Without limiting
the foregoing, such Use shall exclude any use that would cause the Premises or
the Property to be deemed a "place of public accommodation" under the Americans
with Disabilities Art (the "ADA") as further described in the Building Rules
(defined below). All Common Areas shall be subject to Landlord's exclusive
control and management at all times. Tenant shall not use or permit the use of
any portion of the Common Areas for other than their intended use.

     (B) COMPLIANCE. From and after the Commencement Date, Tenant shall comply
promptly, at its sole expense, (including making any alterations or
improvements) with all laws (including the ADA), ordinances, notices, orders,
rules, regulations and requirements regulating the Property during the Term
which impose any duty upon Landlord or Tenant with respect to Tenant's use,
occupancy or alteration of, or Tenant's installations in or upon, the Property
including the Premises, (as the same may be amended, the "LAWS AND
REQUIREMENTS") and the building rules attached as Exhibit "C", as amended by
Landlord from time to time, (the "BUILDING RULES"). Provided, however, that
Tenant shall not be required to comply with the Laws and Requirements with
respect to the footings, foundations, structural steel columns and girders
forming a part of the Property unless the need for such compliance arises out of
Tenant's use, occupancy or alteration of the Property, or by any act or omission
of Tenant or any employees, agents, contractors, licensees or invitees
("AGENTS") of Tenant. With respect to Tenant's obligations as to the Property,
other than the Premises, at Landlord's option and at Tenants expense, Landlord
may comply with any repair, replacement or other construction requirements of
the Laws and Requirements and Tenant shall pay to Landlord all costs thereof as
additional rent.

     (C) ENVIRONMENTAL. Tenant shall comply, at its sole expense, with all Laws
and Requirements as set forth above, all manufacturers' instructions and all
requirements of insurers relating to the treatment production, storage,
handling, transfer, processing, transporting, use, disposal and release of
hazardous substances, hazardous mixtures, chemicals, pollutants, petroleum
products, toxic or radioactive matter (the "RESTRICTED ACTIVITIES"). Tenant
shall deliver to Landlord copies of all Material Safety Data Sheets or other
written information prepared by manufacturers, importers or suppliers of any
chemical and all notices, filings, permits and any other written communications
from or to Tenant and any entity regulating any Restricted Activities.

     (D) NOTICE. If at any time during or after the Term, Tenant becomes aware
of any inquiry, investigation or proceeding regarding the Restricted Activities
or becomes aware of any claims, actions or investigations regarding the ADA,
Tenant shall give Landlord written notice, within 5 days after first learning
thereof, providing all available information and copies of any notices.

5. TERM. The Term of this lease shall commence on the Commencement Data and
shall end at 11:59 p.m. on the last day of the Term (the "EXPIRATION DATE"),
without the necessity for notice from either party, unless sooner terminated in
accordance with the terms hereof. At Landlord's request, Tenant shall confirm
the Commencement Date and Expiration Date by executing a lease commencement
certificate in the form attached as Exhibit "B".

6. MINIMUM ANNUAL RENT. Tenant agrees to pay to Landlord the Minimum Annual Rent
in equal monthly installments is the amount set forth in Section 1(d) (as
increased at the beginning of each lease year as set forth in Section l(d)), in
advance, on the first day of each calendar month during the Term, without
notice, demand or setoff, at Landlord's address designated at the beginning of
this lease unless Landlord designates otherwise; provided that rent for the
first full month shall be paid at the signing of this lease. If the Commencement
Date falls on a day other than the first day of a calendar month, the rent shall
be apportioned pro rata on a per diem basis for the period from the Commencement
Date until the first day of the following calendar month and shall be paid on or
before the Commencement Date. As used in this lease, the term "LEASE YEAR" means
the period from the Commencement Date

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through the succeeding 12 full calendar months (including for the first lease
year any partial month from the Commencement Date until the first day of the
first full calendar month) and each successive 12 month period thereafter during
the Term.

7. OPERATION OF PROPERTY; PAYMENT OF EXPENSES.

     (A) PAYMENT OF OPERATING EXPENSES. Tenant shall pay to Landlord the Annual
Operating Expenses in equal monthly installments in the amount set forth in
Section 1(d) (prorated for any partial month), from the Commencement Date and
continuing throughout the Term on the first day of each calendar month during
the Term, as additional rent, without notice, demand or setoff; provided that
the monthly installment for the first full month shall be paid at the signing of
this lease. Landlord shall apply such payments to the annual operating costs to
Landlord of operating and maintaining the Property during each calendar year of
the Term, which costs may include by way of example rather than limitation:
insurance premiums, fees, impositions, costs for repairs, maintenance, service
contracts, management and administrative fees, governmental permits, overhead
expenses, costs of furnishing water, sewer, gas, fuel, electricity, other
utility services, janitorial service, trash removal, security services,
landscaping and grounds maintenance, and the costs of any other items
attributable to operating or maintaining any or all of the Property excluding
any costs which under generally accepted accounting principles are capital
expenditures; provided, however, that annual operating costs also shall include
the annual amortization (over an assumed useful life of ten years) of the costs
(including financing charges) of building improvements made by Landlord to the
Property that are required by any governmental authority or for the purpose of
reducing operating expenses or directly enhancing the safety of tenants in the
Building generally. The amount of the Annual Operating Expenses set forth in
Section l(d) represents Landlord's estimate of Tenant's share of the estimated
operating costs during the first calendar year of the Term on an annualized
basis; from time to time Landlord may adjust such estimated amount if the
estimated operating costs increase. Tenant's obligation to pay the Annual
Operating Expenses pursuant to this Section 7 shall survive the expiration or
termination of this lease.

          (i) COMPUTATION OF TENANT'S SHARE OF ANNUAL OPERATING COSTS. After the
end of each calendar year of the Term. Landlord shall compute Tenant's share of
the annual operating costs described above incurred during such calendar year by
(A) calculating an appropriate adjustment, using generally accepted accounting
principles, to avoid allocating to Tenant or to any other tenant (as the case
may be) those specific costs which Tenant or any other tenant has agreed to pay
(B) calculating an appropriate adjustment, using generally accepted accounting
principles, to avoid allocating to any vacant space those specific costs which
were not incurred for such space; and (C) multiplying the adjusted annual
operating costs by Tenant's Proportionate Share.

          (ii) RECONCILIATION. By April 30th of each year (and as soon as
practical after the expiration or termination of this lease or at any time in
the event of a sale of the Property) Landlord shall provide Tenant with a
statement of the actual amount of such annual operating costs for the preceding
calendar year or part thereof. Landlord or Tenant shall pay to the other the
amount of any deficiency or overpayment then due from one to the other or, at
Landlord's option, Landlord may credit Tenant's account for any overpayment.
Tenant shall have the right to inspect the books and records used by Landlord in
calculating the annual operating costs within 60 days of receipt of the
statement during regular business hours after having given Landlord at least 48
hours prior written notice; provided, however, that Tenant shall make all
payments of additional rent without delay, and that Tenant's obligation to pay
such additional rent shall not be contingent on any such right.

     (B) IMPOSITIONS. As used in this lease the term "impositions" refers to all
levies, taxes (including sales taxes and gross receipt taxes) and assessments,
which are applicable to the Term, and which are imposed by any authority or
under any law, ordinance or regulation thereof, or pursuant to any recorded
covenants or agreements, and the reasonable cost of contesting any of the
foregoing, upon or with respect to the Property or any part thereof, or any
improvement thereto. Tenant shall pay to Landlord with the monthly payment of
Minimum Annual Rent any imposition imposed directly upon this lease or the
Rent (defined in Section 7(g)) or amounts payable by any subtenants or other
occupants of the Premises, or against Landlord because of Landlord's estate or
interest herein.

          (i) Nothing herein contained shall be interpreted as requiring Tenant
to pay any income, excess profits or corporate capital stock tax imposed or
assessed upon Landlord, unless such tax or any similar tax is levied or assessed
in lieu of all or any part of any imposition or an increase in any imposition.

          (ii) If it shall not be lawful for Tenant to reimburse Landlord for
any of the impositions, the Minimum Annual Rent shall be increased by the amount
of the portion of such imposition allocable to Tenant, unless prohibited by law.

     (C) INSURANCE.

          (i) PROPERTY. Landlord shall keep in effect insurance against loss or
damage to the Building or the Property by fire and such other casualties as may
be included within fire, extended coverage and special form insurance covering
the full replacement

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<PAGE>

cost of the Building (but excluding coverage of Tenant's personal property in,
and any alterations by Tenant to, the Premises), and such other insurance as
Landlord may reasonably deem appropriate or as may be required from time-to-time
by any mortgagee.

          (ii) LIABILITY. Tenant, at its own expense, shall keep in effect
comprehensive general public liability insurance with respect to the Premises
and the Property, including contractual liability insurance, with such limits of
liability for bodily injury (including death) and property damage as reasonably
may be required by Landlord from time-to-time, but not less than a combined
single limit of $1,000,000 per occurrence and a general aggregate limit of not
less than $2,000,000 (which aggregate limit shall apply separately to each of
Tenant's locations if more than the Premises); however, such limits shall not
limit the liability of Tenant hereunder. The policy of comprehensive general
public liability insurance also shall name Landlord and Landlord's agent as
insured parties with respect to the Premises, shall be written on an
"occurrence" basis and not on a "claims made" basis, shall provide that it is
primary with respect to any policies carried by Landlord and that any coverage
carried by Landlord shall be excess insurance, shall provide that it shall not
be cancelable or reduced without at least 30 days prior written notice to
Landlord and shall be issued in form satisfactory to Landlord. The insurer shall
be a responsible insurance carrier which is authorized to issue such insurance
and licensed to do business in the state in which the Property is located and
which has at all times during the Term a rating of no less than A VII in the
most current edition of Best's Insurance Reports. Tenant shall deliver to
Landlord on or before the Commencement Date, and subsequently renewals of, a
certificate of insurance evidencing such coverage and the waiver of subrogation
described below.

          (iii) WAIVER OF SUBROGATION. Landlord and Tenant shall have included
in their respective property insurance policies waivers of their respective
insurers' right of subrogation against the other party. If such a waiver should
be unobtainable or unenforceable, then such policies of insurance shall state
expressly that such policies shall not be invalidated if, before a casualty, the
insured waives the right of recovery against any party responsible for a
casualty covered by the policy.

          (iv) INCREASE OF PREMIUMS. Tenant agrees not to do anything or fail to
do anything which will increase the cost of Landlord's insurance or which will
prevent Landlord from procuring policies (including public liability) from
companies and in a form satisfactory to Landlord. If any breach of the preceding
sentence by Tenant causes the rate of fire or other insurance to be increased,
Tenant shall pay the amount of such increase as additional rent promptly upon
being billed.

     (D)  REPAIRS AND MAINTENANCE; COMMON AREAS; BUILDING MANAGEMENT.

          (i) Tenant at its sole expense shall maintain the Premises in a neat
and orderly condition.

          (ii) Landlord, shall make all necessary repairs to the Premises, the
Common Areas and any other improvements located on the Property, provided that
Landlord shall have no responsibility to make any repair until Landlord receives
written notice of the need for such repair. Landlord shall operate and manage
the Property and shall maintain all Common Areas and any paved areas appurtenant
to the Property in a clean and orderly condition. Landlord reserves the right to
make alterations to the Common Areas from time to time.

          (iii) Notwithstanding, anything herein to the contrary, repairs and
replacements to the Property including the Premises made necessary by Tenant's
use, occupancy or alteration of, or Tenant's installation in or upon the
Property or by any act or omission of Tenant or its Agents shall be made at the
sole expense of Tenant to the extent not covered by any applicable insurance
proceeds paid to Landlord. Tenant shall not bear the expense of any repairs or
replacements to the Property arising out of or caused by any other tenant's use,
occupancy or alteration of, or any other tenant's installation in or upon,
the Property or by any act or omission of any other tenant or any other
tenant's Agents.

     (E)  UTILITIES.

          (i) Landlord will furnish the Premises with electricity, heating and
air conditioning for the normal use and occupancy of the Premises as general
offices between 8:00 am. and 6;00 p.m., Monday through Friday (legal holidays
excepted). If Tenant shall require electricity or install electrical equipment
including but not limited to electrical heating, refrigeration equipment,
electronic data processing machines, or machines or equipment using current in
excess of 110 volts, which will in any way increase the amount of electricity
usually furnished for use as general office space, or if Tenant shall attempt to
use the Premises in such a manner that the services to be furnished by Landlord
would be required during periods other than or in addition to business hours
referred to above, Tenant will obtain Landlord's prior written approval and will
pay for the resulting additional direct expense, including the expense resulting
from the installation of such equipment and meters, as additional rent promptly
upon being billed. Landlord shall not be responsible or liable for any
interruption in utility service, nor shall such interruption affect the
continuation or validity of this lease.

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<PAGE>

          (ii) If at any time utility services supplied to the Premises are
separately metered, the cost of installing Tenant's meter and the cost of such
separately metered utility service shall be paid by Tenant promptly upon being
billed.

     (F) JANITORIAL SERVICES. Landlord will provide Tenant with trash removal
and janitorial services pursuant to a cleaning schedule attached as Exhibit "D".

     (G) "RENT." The term "RENT" as used in this lease means the Minimum Annual
Rent, Annual Operating Expenses and any other additional rent or sums payable by
Tenant to Landlord pursuant to this lease, all of which shall be deemed rent for
purposes of Landlord's rights and remedies with respect thereto. Tenant shall
pay all Rent to Landlord within 30 days after Tenant is billed, unless otherwise
provided in this lease, and interest shall accrue on all sums due but unpaid.

8. SIGNS. Landlord, at Landlord's expense, will place Tenant's name and suite
number on the Building standard sign and on or beside the entrance door to the
Premises. Except for signs which are located wholly within the interior of the
Premises and not visible from the exterior of the Premises, no signs shall be
placed on the Property without the prior written consent of Landlord. All signs
installed by Tenant shall be maintained by Tenant in good condition and Tenant
shall remove ail such signs at the termination of this lease and shall repair
any damage caused by such installation, existence or removal.

9. ALTERATIONS AND FIXTURES.

     (A) Subject to Section 10, Tenant shall have the right to install its trade
fixtures in the Premises, provided that no such installation or removal thereof
shall affect any structural portion of the Property nor any utility lines,
communications lines, equipment or facilities in the Building serving any tenant
other than Tenant. At the expiration or termination of this lease and at the
option of Landlord or Tenant, Tenant shall remove such installations and, in
the event of such removal, Tenant shall repair any damage caused by such
installation or removal; if Tenant, with Landlord's written consent, elects not
to remove such installation(s) at the expiration or termination of this lease,
all such installations shall remain on the Property and become the property of
Landlord without payment by Landlord.

     (B) Except for non-structural changes which do not exceed $5000 in the
aggregate, Tenant shall not make or permit to be made any alterations to the
Premises without Landlord's prior written consent. Tenant shall pay the costs of
any required architectural/engineering reviews. In making any alterations, (i)
Tenant shall deliver to Landlord the plans, specifications and necessary
permits, together with certificates evidencing that Tenant's contractors and
subcontractors have adequate insurance coverage naming Landlord and Landlord's
agent as additional insureds, at least 10 days prior to commencement thereof,
(ii) such alterations shall not impair the structural strength of the Building
or any other improvements or reduce the value of the Property or affect any
utility lines, communications lines, equipment or facilities in the Building
serving any tenant other than Tenant, (iii) Tenant shall comply with Section 10
and (iv) the occupants of the Building and of any adjoining property shall not
be disturbed thereby. All alterations to the Premises by Tenant shall be the
property of Tenant until the expiration or termination of this, lease; at that
time all such alterations shall remain on the Property and become the property
of Landlord without payment by Landlord unless Landlord gives written notice to
Tenant to remove the same, in which event Tenant will remove such alterations
and repair any resulting damage. At Tenant's request prior to Tenant making any
alterations, Landlord shall notify Tenant in writing, whether Tenant is required
to remove such alterations at the expiration or termination of this lease.

10. MECHANICS' LIENS. Tenant shall pay promptly any contractors and materialmen
who supply labor, work or materials to Tenant at the Property and shall take all
steps permitted by law in order to avoid the imposition of any mechanic's lien
upon all or any portion of the Property. Should any such lien or notice of lien
be filed for work performed for Tenant other than by Landlord, Tenant shall bond
against or discharge the same within 5 days after Tenant has notice that the
lien or claim is filed regardless of the validity of such lien or claim. Nothing
in this lease is intended to authorize Tenant to do or cause any work to be done
or materials to be supplied for the account of Landlord, all of the same to be
solely for Tenant's account and at Tenant's risk and expense. Throughout this
lease the term "MECHANIC'S LIEN" is used to include any lien, encumbrance or
charge levied or imposed upon all or any portion of, interest in or income from
the Property on account of any mechanic's, laborer's, materialman's or
construction lien or arising out of any debt or liability to or any claim of any
contractor, mechanic, supplier, materialman or laborer and shall include any
mechanic's notice of intention to file a lien given to Landlord or Tenant, any
stop order given to Landlord or Tenant, any notice of refusal to pay naming
Landlord or Tenant and any injunctive or equitable action brought by any person
claiming to be entitled to any mechanic's lien,

11. LANDLORD'S RIGHT TO RELOCATE TENANT; RIGHT OF ENTRY.

     (A) Landlord may cause Tenant to relocate from the Premises to a comparable
space ("RELOCATION SPACE") within the Building by giving written notice to
Tenant at least 60 days in advance, provided that Landlord shall pay for all
reasonable costs of

                                        5

<PAGE>

such relocation. Such a relocation shall not terminate, modify or otherwise
affect this lease except that "Premises" shall refer to the Relocation Space
rather than the old location identified in Section I(a).

     (B) Tenant shall permit Landlord and its Agents to enter the Premises at
all reasonable times following reasonable notice (except in the event of an
emergency), for the purpose of inspection, maintenance or making repairs,
alterations or additions as well as to exhibit the Premises for the purpose of
sale or mortgage and, during the last 12 months of the Term, to exhibit the
Premises to any prospective tenant. Landlord will make reasonable efforts not to
inconvenience Tenant in exercising the foregoing rights, but shall not be liable
for any loss of occupation or quiet enjoyment thereby occasioned.

12. DAMAGE BY FIRE OR OTHER CASUALTY.

     (A) If the Premises or Building shall be damaged or destroyed by fire or
other casualty, Tenant promptly shall notify Landlord and Landlord, subject to
the conditions set forth in this Section 12, shall repair such damage and
restore the Premises to substantially the same condition in which they were
immediately prior to such damage or destruction, but not including the repair,
restoration or replacement of the fixtures or alterations installed by Tenant
Landlord shall notify Tenant in writing, within 30 days after the date of the
casualty, if Landlord anticipates that the restoration will take more than 180
days from the data of the casualty to complete; in such event, either Landlord
or Tenant may terminate this lease effective as of the date of casualty by
giving written notice to the other within 10 days after Landlord's notice.
Further, if a casualty occurs during the last 12 months of the Term or any
extension thereof Landlord may cancel this lease unless Tenant has the right to
extend the Term for at least 3 more years and does so within 30 days after the
date of the casualty.

     (B) Landlord shall maintain a 12 month rental coverage endorsement or other
comparable form of coverage as part of its fire, extended coverage and special
form insurance. Tenant will receive an abatement of its Minimum Annual Rent and
Annual Operating Expenses So the extent the Premises are rendered untenantable
as determined by the carrier providing the rental coverage endorsement.

13. CONDEMNATION.

     (A) TERMINATION. If (i) all of the Premises are taken by a condemnation or
otherwise for any public or quasi-public use, (ii) any part of the Premises is
so taken and the remainder thereof is insufficient for the reasonable operation
of Tenant's business or (iii) any of the Property is so taken, and, in
Landlord's opinion, it would be impractical or the condemnation proceeds are
insufficient to restore the remainder of the Property, then this lease shall
terminate and all unaccrued obligations hereunder shall cease as of the day
before possession is taken by the condemnor.

     (B) PARTIAL TAKING. If there is a condemnation and this lease has not been
terminated pursuant to this Section, (i) Landlord shall restore the Building and
the improvements which are a part of the Premises to a condition and size as
nearly comparable as reasonably possible to the condition and size thereof
immediately prior to the date upon which, the condemnor took possession and (ii)
the obligations of Landlord and Tenant shall be unaffected by such condemnation
except that there shall be an equitable abatement of the Minimum Annual Rent
according to the rental value of the Premises before and after the date upon
which the condemnor took possession and/or the date Landlord completes such
restoration.

     (C) AWARD. In the event of a condemnation affecting Tenant, Tenant shall
have the right to make a claim against the condemnor for moving expenses and
business dislocation damages to the extent that such claim does not reduce the
sums otherwise, payable by the condemnor to Landlord. Except as aforesaid
and except as set forth in (d) below, Tenant hereby assigns all claims against
the condemnor to Landlord.

     (D) TEMPORARY TAKING. No temporary taking of the Premises shall terminate
this lease or give Tenant any right to any rental abatement. Such a temporary
taking will be treated as if Tenant had sublet the Premises to the condemnor and
had assigned the proceeds of the subletting to Landlord to be applied on account
of Tenant's obligations hereunder. Any award for such a temporary taking during
the Term shall be applied first, to Landlord's costs of collection and, second,
on account of sums owing by Tenant hereunder, and if such amounts applied on
account of sums owing by Tenant hereunder should exceed the entire amount owing
by Tenant for the remainder of the Term, the excess will be paid to Tenant

14. NON-ABATEMENT OF RENT. Except as otherwise expressly provided as to damage
by fire or other casualty in Section 12(b) and is to condemnation in Section
13(b), there shall be no abatement or reduction of the Rent for any cause
whatsoever, and this lease shall not terminate, and Tenant shall not be entitled
to surrender the Premises.

15. INDEMNIFICATION OF LANDLORD. Subject to Sections 7(c)(iii) and 16, Tenant
will protect, indemnify and hold harmless Landlord and its Agents from and
against any and all claims, actions, damages, liability and expense (including
fees of attorneys, investigators

                                        6

<PAGE>

and experts) in connection with loss of life, personal injury or damage to
property in or about the Premises or arising out of the occupancy or use of the
Premises by Tenant or its Agents or occasioned wholly or in part by any act or
omission of Tenant or its Agents, whether prior to, during or after the Term,
except to the extent such loss, injury or damage was caused by the negligence of
Landlord or its Agents. In case any action or proceeding is brought against
Landlord and/or its Agents by reason of the foregoing. Tenant, at its expense,
shall resist and defend such action or proceeding, or cause the same to be
resisted and defended by counsel (reasonably acceptable to Landlord and its
Agents) designated by the insurer whose policy covers such occurrence or by
counsel designated by Tenant and approved by Landlord and its Agents. Tenant's
obligations pursuant to this Section 15 shall survive the expiration or
termination of this lease.

16. WAIVER OF CLAIMS. Landlord and Tenant each hereby waives all claims for
recovery against the other for any loss or damage which may be inflicted upon
the property of such party even if such loss or damage shall be brought about by
the fault or negligence of the other party or its Agents; provided, however,
that such waiver by Landlord shall not be effective with respect to any
liability of Tenant described in Sections 4(c) and 7(d)(iii).

17. QUIET ENJOYMENT. Landlord covenants that Tenant, upon performing all of its
covenants, agreements and conditions of this lease, shall have quiet and
peaceful possession of the Premises as against anyone claiming by or through
Landlord, subject, however, to the exceptions, reservations and conditions of
this lease.

18. ASSIGNMENT AND SUBLETTING.

     (A) LIMITATION. Tenant shall not transfer this lease, voluntarily or by
operation of law, without the prior written consent of Landlord which shall not
be withheld unreasonably. However, Landlord's consent shall not be required in
the event of any transfer by Tenant to an affiliate of Tenant which is at least
as creditworthy as Tenant as of the date of this lease and provided. Tenant
delivers to Landlord the instrument described in Section (c)(iii) below,
together with a certification of such creditworthiness by Tenant and such
affiliate. Any transfer not in conformity with this Section 18 shall be void at
the option of Landlord, and Landlord may exercise any or all of its rights under
Section 23. A consent to one transfer shall not be deemed to be a consent to any
subsequent transfer. "Transfer" shall include any sublease, assignment, license
or concession agreement, change in ownership or control of Tenant, mortgage or
hypothecation of this lease or Tenant's interest therein or in all or a portion
of the Premises.

     (B) OFFER TO LANDLORD. Tenant acknowledges that the terms of this lease,
including the Minimum Annual Rent, have been based on the understanding that
Tenant physically shall occupy the Premises for the entire Term. Therefore, upon
Tenant's request to transfer all or a portion of the Premises, at the option of
Landlord, Tenant and Landlord shall execute an amendment to this lease removing
such space from the Premises, Tenant shall be relieved of any liability with
respect to such space and Landlord shall have the right to lease such space to
any party, including Tenant's proposed transferee.

     (C) CONDITIONS. Notwithstanding the above, the following shall apply to any
transfer, with or without Landlord's consent:

          (i) As of the date of any transfer, Tenant shall not be in default
under this lease nor shall any act or omission have occurred which would
constitute a default with the giving of notice and/or the passage of time.

          (ii) No transfer shall relieve Tenant of its obligation to pay the
Rent and to perform all its other obligations hereunder. The acceptance of Rent
by Landlord from any person shall not be deemed to be a waiver by Landlord of
any provision of this lease or to be a consent to any transfer.

          (iii) Each transfer shall be by a written instrument in form and
substance satisfactory to Landlord which shall (A) include an assumption of
liability by any transferee of all Tenant's obligations and the transferee's
ratification of and agreement to be bound by all the provisions of this lease,
(B) afford Landlord the right of direct action against the transferee pursuant
to the same remedies as are available to Landlord against Tenant and (C) be
executed by Tenant and the transferee.

          (iv) Tenant shall pay, within 10 days of receipt of as invoice which
shall be no less than $250, Landlord's reasonable attorneys' fees and costs in
connection with the review, processing and documentation of any transfer for
which Landlord's consent is requested.

19. SUBORDINATION; MORTGAGEE'S RIGHTS.

     (A) This lease shall be subordinate to any first mortgage or other primary
encumbrance now or hereafter affecting the Premises. Although the subordination
is self-operative, within 10 days after written request, Tenant shall execute
and deliver any further instruments confirming such subordination of this lease
and any further instruments of attornment that may be desired by any such
mortgagee or Landlord. However, any mortgagee may at any time subordinate its
mortgage to this lease, without Tenant's consent,

                                       7

<PAGE>

by giving written notice to Tenant, and thereupon this lease shall be deemed
prior to such mortgage without regard to their respective dates of execution and
delivery; provided, however, that such subordination shall not affect any
mortgagee's right to condemnation awards, casualty issuance proceeds,
intervening liens or any right which shall arise between the recording of such
mortgage and the execution of this lease.

     (B) It is understood and agreed that any mortgagee shall not be liable to
Tenant for any funds paid by Tenant to Landlord unless such funds actually have
been transferred to such mortgagee by Landlord.

     (C) Notwithstanding the provisions of Sections 12 and 13 above, Landlord's
obligation to restore the Premises after a casualty or condemnation shall be
subject to the consent and prior rights of Landlord's first mortgagee.

20. RECORDING; TENANT'S CERTIFICATE. Tenant shall not record this lease or a
memorandum thereof without Landlord's prior written consent. Within 10 days
after Landlord's written request from time to time:

     (A) Tenant shall execute, acknowledge and deliver to Landlord a written
statement certifying the Commencement Date and Expiration Date of this lease,
that this lease is in full force and effect and has not been modified and
otherwise as set forth in the form of estoppel certificate attached as Exhibit
"E" or with such modifications as may be necessary to reflect accurately the
stated facts and/or such other certifications as may be requested by a mortgagee
or purchaser. Tenant understands that its failure to execute such documents may
cause Landlord serious financial damage by causing the failure of a financing or
sale transaction.

     (B) Tenant shall furnish to Landlord, Landlord's mortgagee, prospective
mortgagee or purchaser reasonably requested financial information.

21. SURRENDER; ABANDONED PROPERTY.

     (A) Subject to the terms of Sections 9(b), 12(a) and 13(b), at the
expiration or termination of this lease, Tenant promptly shall yield up in the
same condition, order and repair in which they are required to be kept
throughout the Term, the Premises and all improvements thereto, and all fixtures
and equipment servicing the Building, ordinary wear and tear excepted.

     (B) Upon or prior to the expiration or termination of this lease, Tenant
shall remove any personal property from the Property. Any personal property
remaining thereafter shall be deemed conclusively to have been abandoned, and
Landlord, at Tenant's expense, may remove, store, sell or otherwise dispose of
such property in such manner as Landlord may see fit and/or Landlord may retain
such property as its property. If any part thereof shall be sold, then Landlord
may receive and retain the proceeds of such sale and apply the same, at its
option, against the expenses of the sale, the cost of moving and storage and any
Rent due under this lease.

     (C) If Tenant, or any person claiming through Tenant, shall continue to
occupy the Premises after the expiration or termination of this lease or any
renewal thereof, such occupancy shall be deemed to be under a month-to-month
tenancy under the same terms and conditions set forth in this lease, except that
the monthly installment of the Minimum Annual Rent during such continued
occupancy shall be double the amount applicable to the last month of the Term.
Anything to the contrary notwithstanding, any holding over by Tenant without
Landlord's prior written consent shall constitute a default hereunder and shall
be subject to all the remedies available to Landlord.

22. CURING TENANT'S DEFAULTS. If Tenant shall be in default in the performance
of any of its obligations hereunder, Landlord, without any obligation to do so,
in addition to any other rights it may have in law or equity may elect to cure
such default on behalf of Tenant after written notice (except in the case of
emergency) to Tenant. Tenant shall reimburse Landlord upon demand for any sums
paid or costs incurred by Landlord in curing such default, including interest
thereon from the respective dates of Landlord's incurring such costs, which sums
and costs together with interest shall be deemed additional rent.

23. DEFAULTS - REMEDIES.

     (A) DEFAULTS. It shall be an event of default.

          (i)  If Tenant does not pay in full when due any and all Rent;

          (ii) If Tenant fails to observe and perform or otherwise breaches any
               other provision of this lease;

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<PAGE>

          (iii) If Tenant abandons the Premises, which shall be conclusively
presumed if the Premises remain unoccupied for more than 10 consecutive days, or
removes or attempts to remove Tenant's goods or property other than in the
ordinary course of business; or

          (iv) If Tenant becomes insolvent or bankrupt in any sense or makes a
general assignment for the benefit of creditors or offers a settlement to
creditors, or if a petition in bankruptcy or for reorganization or for an
arrangement with creditors under any federal or state law is filed by or against
Tenant, or a bill in equity or other proceeding for the appointment of a
receiver for any of Tenant's assets is commenced, or if any of the real or
personal property of Tenant shall be levied upon; provided, however, that any
proceeding brought by anyone other than Landlord or Tenant under any bankruptcy,
insolvency, receivership or similar law shall not constitute a default until
such proceeding has continued unstayed for more than 60 consecutive days.

     (B) REMEDIES. Then, and in any such event. Landlord shall have the
following rights:

          (i) To charge a late payment fee equal to the greater of $100 or 5% of
any amount owed to Landlord pursuant to this lease which is not paid within 5
days after the due date.

          (ii) To enter and repossess the Premises, by breaking open locked
doors if necessary, and remove all persons and all or any property therefrom, by
action at law or otherwise, without being liable for prosecution or damages
therefor, and Landlord may, at Landlord's option, make alterations and repairs
in order to relet the Premises and relet all or any part(s) of the Premises for
Tenant's account. Tenant agrees to pay to Landlord on demand any deficiency that
may arise by reason of such reletting. In the event of reletting without
termination of this lease, Landlord may at any time thereafter elect to
terminate this lease for such previous breach.

          (iii) To accelerate the whole or any part of the Rent for the balance
of the Term, and declare the same to be immediately due and payable.

          (iv) To terminate this lease and the Term without any right on the
part of Tenant to save the forfeiture by payment of any sum due or by other
performance of any condition, term or covenant broken.

     (C) GRACE PERIOD. Notwithstanding anything hereinabove stated, neither
party will exercise any available right because of any default of the other,
except those remedies contained in subsection (b)(i) of this Section, unless
such party shall have first given 10 days written notice thereof to the
defaulting party, and the defaulting party shall have failed to cure the default
within such period; provided, however, that:

          (i) No such notice shall be required if Tenant fails to comply with
the provisions of Sections 10 or 20(a), in the case of emergency as set forth,
in Section 22 or in the event of any default enumerated in subsections (a)(iii)
and (iv) of this Section.

          (ii) Landlord shall not be required to give such 10 days notice more
than 2 times during any 12 month period.

          (iii) If the default consists of something other than the failure to
pay money which cannot reasonably be cured within 10 days, neither party will
exercise any right if the defaulting party begins to cure the default within the
10 days and continues actively and diligently in good faith to completely cure
said default.

          (iv) Tenant agrees that any notice given by Landlord pursuant to this
Section which is served in compliance with Section 27 shall be adequate notice
for the purpose of Landlord's exercise of any available remedies.

     (D) NON-WAIVER; NON-EXCLUSIVE. No waiver by Landlord of any breach by
Tenant shall be a waiver of any subsequent breach, nor shall any forbearance by
Landlord to seek a remedy for any breach by Tenant be a waiver by Landlord of
any rights and remedies with respect to such or any subsequent breach. Efforts
by Landlord to mitigate the damages caused by Tenant's default shall not
constitute a waiver of Landlord's right to recover damages hereunder. No right
or remedy herein conferred upon or reserved to Landlord is intended to be
exclusive of any other right or remedy provided herein or by law, but each shall
be cumulative and in addition to every other right or remedy given herein or now
or hereafter existing at law or in equity. No payment by Tenant or receipt or
acceptance by Landlord of a lesser amount than the total amount due Landlord
under this lease shall be deemed to be other than on account, nor shall any
endorsement or statement on any check or payment be deemed an accord and
satisfaction, and Landlord may accept such check or payment without prejudice to
Landlord's right to recover the balance of Rent due, or Landlord's right to
pursue any other available remedy.

                                        9

<PAGE>

     (E) COSTS AND ATTORNEYS' FEES. If either party commences an action against
the other party arising out of or in connection with this lease, the prevailing
party shall be entitled to have and recover from the losing party attorneys'
fees, costs of suit, investigation expenses and discovery costs, including costs
of appeal.

24. REPRESENTATIONS OF TENANT. Tenant represents to Landlord and agrees that:

     (A) The word "TENANT" as used herein includes the Tenant named above as
well as its successors and assigns, each of which shall be under the same
obligations and liabilities and each of which shall have the same rights,
privileges and powers as it would have possessed had it originally signed this
lease as Tenant. Each and every of the persons named above as Tenant shall be
bound jointly and severally by the terms, covenants and agreements contained
herein. However, no such rights, privileges or powers shall inure to the benefit
of any assignee of Tenant immediate or remote, unless Tenant has complied with
the terms of Section 18 and the assignment to such assignee is permitted or has
been approved in writing by Landlord. Any notice required or permitted by the
terms of this lease may be given by or to any one of the persons named above as
Tenant, and shall have the same force and affect as if given by or to all
thereof.

     (B) If Tenant is a corporation, partnership or any other form of business
association or entity, Tenant is duly formed and in good standing, and has full
corporate or partnership power and authority, as the case may be, to enter into
this lease and has taken all corporate or partnership action, as the case may
be, necessary to carry out the transaction contemplated herein, so that when
executed, this lease constitutes a valid and binding obligation enforceable in
accordance with its terms. Tenant shall provide Landlord with corporate
resolutions or other proof in a form acceptable to Landlord, authorizing the
execution of this lease at the time of such execution.

25. LIABILITY OF LANDLORD. The word "LANDLORD" as used herein includes the
Landlord named above as well as its successors and assigns, each of which shall
have the same rights, remedies, powers, authorities and privileges as it would
have had it originally signed this lease as Landlord. Any such person or entity,
whether or not named herein, shall have no liability hereunder after it ceases
to hold title to the Premises except for obligations already accrued (and, as to
any unapplied portion of Tenant's Security Deposit, Landlord shall be relieved
of all liability therefor upon transfer of such portion to its successor in
interest) and Tenant shall look solely to Landlord's successor in interest for
the performance of the covenants and obligations of the Landlord hereunder which
thereafter shall accrue. Neither Landlord nor any principal of Landlord nor any
owner of the Property, whether disclosed or undisclosed, shall have any personal
liability with respect to any of the provisions of this lease or the Premises,
and if Landlord is in breach or default with respect to Landlord's obligations
under this lease or otherwise, Tenant shall look solely to the equity of
Landlord in the Property for the satisfaction of Tenant's claims.
Notwithstanding the foregoing, no mortgagee or ground lessor succeeding to the
interest of Landlord hereunder (either in terms of ownership or possessory
rights) shall be (a) liable for any previous act or omission of a prior
landlord, (b) subject to any rental offsets or defenses against a prior landlord
or (c) bound by any amendment of this lease made without its written consent, or
by payment by Tenant of Minimum Annual Rent in advance in excess of one monthly
installment.

26. INTERPRETATION; DEFINITIONS.

     (A) CAPTIONS. The captions in this lease are for convenience only and are
not a part of this lease and do not in any way define, limit, describe or
amplify the terms and provisions of this lease or the scope or intent thereof.

     (B) ENTIRE AGREEMENT. This lease represents the entire agreement between
the parties hereto and there are no collateral or oral agreements or
understandings between Landlord and Tenant with respect to the Premises or the
Property. No rights, easements or licenses are acquired in the Property or any
land adjacent to the Property by Tenant by implication or otherwise except as
expressly set forth in the provisions of this lease. This lease shall not be
modified in any manner except by an instrument in writing executed by the
parties. The masculine (or neuter) pronoun and the singular number shall include
the masculine, feminine and neuter genders and the singular and plural number.
The word "INCLUDING" followed by any specific item(s) is deemed to refer to
examples rather than to be words of limitation. Both parties having participated
fully and equally in the negotiation and preparation of this lease, this lease
shall not be more strictly construed, nor any ambiguities in this lease
resolved, against either Landlord or Tenant.

     (C) COVENANTS. Each covenant, agreement, obligation, term, condition or
other provision herein contained shall be deemed and construed as a separate and
independent covenant of the party bound by, undertaking or making the same, not
dependent on any other provision of this lease unless otherwise expressly
provided. All of the terms and conditions set forth in this lease shall apply
throughout the Term unless otherwise expressly set forth herein.

     (D) INTEREST. Wherever interest is required to be paid hereunder, such
interest shall be at the highest rate permitted under law but not in excess of
15% per annum.

                                       10

<PAGE>

     (E) SEVERABIIITY; GOVERNING LAW. If any provisions of this lease shall be
declared unenforceable in any respect, such unenforceability shall not affect
any other provision of this lease, and each such provision shall be deemed to be
modified, if possible, in such a manner as to render it enforceable and to
preserve to the extent possible the intent of the parties as set forth herein.
This lease shall be construed and enforced in accordance with the laws of the
state in which the Property is located.

     (F) "MORTGAGE" AND "MORTGAGEE." The word "MORTGAGE" as used herein includes
any lien or encumbrance on the Premises or the Property or on any part of or
interest in or appurtenance to any of the foregoing, including without
limitation any ground rent or ground lease if Landlord's interest is or becomes
a leasehold estate. The word "MORTGAGEE" as used herein includes the holder of
any mortgage, including any ground lessor if Landlord's interest is or becomes a
leasehold estate. Wherever any right is given to a mortgagee, that right may be
exercised on behalf of such mortgagee by any representative or servicing agent
of such mortgagee.

     (G) "PERSON." The word "person" is used herein to include a natural person,
a partnership, a corporation, an association and any other form of business
association or entity.

27. NOTICES. Any notice or other communication under this lease shall be in
writing and addressed to Landlord or Tenant at their respective addresses
specified at the beginning of this lease, except that after the Commencement
Date Tenant's address shall be at the Premises, (or to such other address as
either may designate by notice to the other) with a copy to any mortgagee or
other party designated by Landlord. Each notice or other communication shall be
deemed given if sent by prepaid overnight delivery service or by certified mail,
return receipt requested, postage prepaid or in any other manner, with delivery
in any case evidenced by a receipt, and shall be deemed received on the day of
actual receipt by the intended recipient or on the business day delivery is
refused. The giving of notice by Landlords attorneys, representatives and agents
under this Section shall be deemed to be the acts of Landlord; however, the
foregoing provisions governing the date on which a notice is deemed to have been
received shall mean and refer to the date on which a party to this lease, and
not its counsel or other recipient to which a copy of the notice may be sent, is
deemed to have received the notice.

28. SECURITY DEPOSIT: At the time of signing this lease, Tenant shall deposit
with Landlord the Security Deposit to be retained by Landlord as cash security
for the faithful performance and observance by Tenant of the provisions of this
lease. Tenant shall not be entitled to any interest whatever on the Security
Deposit. Landlord shall have the right to commingle the Security Deposit with
its other funds. Landlord may use the whole or any part of the Security Deposit
for the payment of any amount as to which Tenant is in default hereunder or to
compensate Landlord for any loss or damage it may suffer by reason of Tenant's
default under this lease. If Landlord uses all or any portion of the Security
Deposit as herein provided, within 10 days after written demand therefor, Tenant
shall pay Landlord cash in amount equal to that portion of the Security Deposit
used by Landlord. If Tenant shall comply fully and faithfully with all of the
provisions of this lease, the Security Deposit shall be returned to Tenant after
the Expiration Date and surrender of the Premises to Landlord.

     IN WITNESS WHEREOF, and in consideration of the mutual entry into this
lease and for other good and valuable consideration, and intending to be legally
bound, Landlord and Tenant have executed this lease.

Date signed:                            LANDLORD:
2/14/02
                                        LIBERTY PROPERTY LIMITED PARTNERSHIP

                                        By: Liberty Property Trust Sole General
                                            Partner

                                        By: /s/ Robert L. Kiel
                                            ------------------------------------
                                        Name: Robert L. Kiel
                                        Title: Senior Vice President, Regional
                                               Director

Date signed:                            TENANT:
January 31, 2002
                                        SYNCHRONOSS TECHNOLOGIES, INC.

Attest: /s/ Holly S. Marston            By: /s/ Lawrence R. Irving
        -----------------------------       ------------------------------------
Name: Holly S. Marston                  Name: Lawrence R. Irving
Title: Executive Assistant              Title: CFO

                                       11

<PAGE>

29.  PENNSYLVANIA ADDITIONAL REMEDIES

          a. When this Lease and the Term or any extension thereof shall have
been terminated on account of any default by Tenant, or when the Term or any
extension thereof shall have expired, Tenant hereby authorizes any attorney of
any court of record of the Commonwealth of Pennsylvania to appear for Tenant and
for anyone claiming by, through, or under Tenant and to confess judgment against
all such parties, and in favor of Landlord, in ejectment and for the recovery of
possession of the Premises, for which this Lease or a true and correct copy
hereof shall be good and sufficient warrant. AFTER THE ENTRY OF ANY SUCH
JUDGMENT, A WRIT OF POSSESSION MAY BE ISSUED THEREON WITHOUT FURTHER NOTICE TO
TENANT AND WITHOUT A HEARING. If for any reason after such action shall have
been commenced, it shall be determined and possession of the Premises remain in
or be restored to Tenant, Landlord shall have the right for the same default and
upon any subsequent defaults) or upon the termination of this Lease or Tenant's
right of possession as herein set forth, to again confess judgment as herein
provided, for which this Lease or a true and correct copy hereof shall be good
and sufficient warrant.

          b. If Tenant shall default in the payment of the Rent due hereunder,
Tenant hereby authorizes any attorney of any court of record of the Commonwealth
of Pennsylvania to appear for Tenant and to confess judgment against Tenant, and
in favor of Landlord, for all sums due hereunder plus interest, costs, and an
attorney's collection commission equal to the greater of ten percent (10%) of
all such sums or $1,000.00, for which this Lease or a true and correct copy
hereof shall be good and sufficient warrant. TENANT UNDERSTANDS THAT THE
FOREGOING PERMITS LANDLORD TO ENTER A JUDGMENT AGAINST TENANT WITHOUT PRIOR
NOTICE OR HEARING. ONCE SUCH A JUDGMENT HAS BEEN ENTERED AGAINST TENANT, ONE OR
MORE WRITS OF EXECUTION OR WRITS OF GARNISHMENT MAY BE ISSUED THEREON WITHOUT
FURTHER NOTICE TO TENANT AND WITHOUT A HEARING, AND, PURSUANT TO SUCH WRITS,
LANDLORD MAY CAUSE THE SHERIFF OF THE COUNTY IN WHICH ANY PROPERTY OF TENANT IS
LOCATED TO SEIZE TENANT'S PROPERTY BY LEVY OR ATTACHMENT. IF THE JUDGMENT
AGAINST TENANT REMAINS UNPAID AFTER SUCH LEVY OR ATTACHMENT, LANDLORD CAN CAUSE
SUCH PROPERTY TO BE SOLD BY THE SHERIFF EXECUTING THE WRITS, OR, IF SUCH
PROPERTY CONSISTS OF A DEBT OWED TO TENANT BY ANOTHER ENTITY, LANDLORD CAN CAUSE
SUCH DEBT TO BE PAID DIRECTLY TO LANDLORD IN AN AMOUNT UP TO BUT NOT TO EXCEED
THE AMOUNT OF THE JUDGMENT OBTAINED BY LANDLORD AGAINST TENANT, PLUS THE COSTS
OF THE EXECUTION. Such authority shall not be exhausted by one exercise thereof,
but judgment may be confessed as aforesaid from time-to-time as often as any of
said rental and other sums shall fall due or be in arrears, and such powers may
be exercised as well after the expiration of the initial Term of this Lease and
during any extended or renewal Term of this Lease and after the expiration of
any extended or renewal Term of this Lease.

          c. The warrants of attorney to confess judgment set forth above shall
continue in full force and effect and be unaffected by amendments of this Lease
or other agreements between Landlord and Tenant even if any such amendments or
other agreements increase Tenant's obligations or expand the size of the
Premises. Tenant waives any procedural errors in connection with the entry of
any such judgment or in the issuance of any one or more writs of possession or
execution or garnishment thereon.

                                       R-1

<PAGE>

          d. TENANT KNOWINGLY AND EXPRESSLY WAIVES (I) ANY RIGHT, INCLUDING,
WITHOUT LIMITATION, UNDER ANY APPLICABLE STATUTE, WHICH TENANT MAY HAVE TO
RECEIVE A NOTICE TO QUIT PRIOR TO LANDLORD COMMENCING AN ACTION FOR REPOSSESSION
OF THE PREMISES AND (II) ANY RIGHT WHICH TENANT MAY HAVE TO NOTICE AND TO
HEARING PRIOR TO A LEVY UPON OR ATTACHMENT OF TENANT'S PROPERTY OR THEREAFTER.

                                        SYNCHRONOSS TECHNOLOGIES, INC.

                                        By: /s/ Lawrence R. Irving
                                            ------------------------------------
                                        Name: Lawrence R. Irving
                                        Title: CFO

30.  CONDITION OF PREMISES

     Tenant understands and agrees that it is leasing the Premises from Landlord
in its "AS-IS" condition, and that Landlord is required to perform no work with
regard to the Premises. Tenant acknowledges that it is well aware of the
condition of the Premises, in that is has occupied portions of the Premises for
many months pursuant to an arrangement between Tenant and the prior tenant of
the Premises.

31.  ADDITIONAL PROVISIONS RELATING TO MINIMUM ANNUAL RENT AND DEFINITION OF
     "LEASE YEAR"

          a. Notwithstanding any provision of this Lease to the contrary, the
time period commencing on February 1, 2002, and ending on August 31, 2002, shall
be deemed the first lease year. Each subsequent period of twelve (12) full
calendar months, thereafter, shall constitute each subsequent lease year.

          b. Tenant's Minimum Annual Rent obligation during the Term shall be as
set forth in the following schedule:

<TABLE>
<CAPTION>
                       MINIMUM ANNUAL                    MONTHLY
                     RENT PER RENTABLE     MINIMUM     INSTALLMENT
                      SQUARE FOOT PER       ANNUAL      OF MINIMUM
TIME PERIOD                 YEAR             RENT      ANNUAL RENT
-----------          -----------------   -----------   -----------
<S>                  <C>                 <C>           <C>
First Lease Year           $13.80        $303,600.00    $25,300.00
Second Lease Year          $14.20        $312,400.00    $26,033.33
Third Lease Year           $14.60        $321,200.00    $26,766.67
Fourth Lease Year          $15.50        $341,000.00    $28,416.67
Fifth Lease Year           $16.00        $352,000.00    $29,333.33
Sixth Lease Year           $16.50        $363,000.00    $30,250.00
Seventh Lease Year         $17.00        $374,000.00    $31,166.67
Eighth Lease Year          $17.50        $385,000.00    $32,083.33
</TABLE>

                                      R-2

<PAGE>

32.  OPTION TO EXTEND TERM

     Provided that Landlord has not given tenant notice of default more than two
(2) times preceding the Expiration Date, that there then exists no event of
default by tenant under this lease or any event that with the giving of notice
and/or the passage of time would constitute a default, and that Tenant is the
sole occupant of the Premises, Tenant shall have the right and option to extend
the Term for one (1) additional period of sixty (60) months, exercisable by
giving Landlord prior written notice, at least nine (9) months in advance of the
Expiration Date, of Tenant's election to extend the Term; it being agreed that
time is of the essence and that this option is personal to Tenant and is
non-transferable to any assignee or sublessee (regardless of whether any such
assignment or sublease was made with or without Landlord's consent) or other
party. Such extension shall be under the same terms and conditions as provided
in this Lease except as follows:

          a. The additional period shall begin on the Expiration Date and
thereafter the Expiration Date shall be deemed to be the fifth anniversary of
the previous Expiration Date;

          b. There shall be no further options to extend; and

          c. Tenant's Minimum Annual rent obligation on account of the first
twelve (12) months of the additional period (the "First Extension Year") shall
be the greater of Tenant's Minimum Annual Rent obligation on account of the last
twelve (12) months of the initial Term (the "Previous Rent") or the fair market
rent as determined in accordance with the provisions of this subsection. Within
thirty (30) days after Landlord receives notice of Tenant's exercise of its
option to extend the Term, but in no event prior to nine (9) months prior to the
Expiration Date, Landlord will give notice to Tenant stating either that the
Minimum Annual Rent for the First Extension Year shall be the Previous Rent or
stating Landlord's good faith determination of the fair market rent then
applicable to the Premises (the "Rent Notice"). If the Rent Notice states that
the Previous Rent shall apply, the Previous Rent shall be the Minimum Annual
Rent for the First Extension year. If the Rent Notice states a fair market rent
and, if, within twenty (20) days after receiving the Rent Notice, Tenant gives
notice to landlord that Tenant accepts the rent as set forth in the Rent Notice
or Tenant fails to notify Landlord of an objection to such rent, the Minimum
Annual Rent as stated in the Rent Notice shall be Tenant's Minimum Annual rent
obligation applicable to the First Extension year. If, within the aforesaid
twenty (20) day period Tenant gives notice to Landlord ("Tenant's Reply") of
Tenant's objection to the rent as stated in the Rent Notice, stating in such
notice of objection Tenant's opinion of the fair market rent applicable to the
Premises, Landlord and Tenant will both act reasonably and in good faith to
arrive at a mutually acceptable fair market rent. If, on or before thirty (30)
days after Landlord's receipt of Tenant's reply, Landlord and Tenant have not
come to an agreement as to fair market rent, Tenant's exercise of this option to
extend the Term shall be deemed null and void, and Tenant shall have no further
options to extend the Term. If Landlord and tenant, within such thirty (30) day
period, agree to a fair market rent, such agreement shall be confirmed in a
letter agreement which shall constitute an amendment to this Lease. For the
second and each subsequent twelve (12) month period of the additional period,
tenant's Minimum Annual rent obligation shall increase by three percent (3%) of
Tenant's Minimum Annual Rent obligation applicable to the immediately preceding
twelve (12) month period - i.e., Tenant's Minimum Annual Rent obligation for the
second year of the additional period shall be one hundred three percent (103%)
of Tenant's Minimum, Annual Rent obligation for the First Extension Year;

                                      R-3

<PAGE>

Tenant's Minimum Annual Rent obligation for the third year of the additional
period shall be one hundred three percent (103%) of Tenant's Minimum Annual rent
obligation for the second year of the additional period; and so on throughout
the additional period.

33.  ADDITIONAL PROVISIONS RELATING TO PREMISES

          a. Landlord agrees that one hundred fifty (150) paved parking spaces
will be available for the use of Tenant's employees and guests on the Property.
Landlord shall have no obligation to designate specific parking spaces, to mark
specific parking spaces, or to police the use of parking spaces.

          b. Tenant shall be permitted to install a fuel operated back-up
generator on the Property outside of the Premises, in accordance with the
following terms, conditions, and limitations:

               i. The generator shall be installed on a concrete pad to be
constructed by Tenant in the vicinity of the trash dumpster enclosure, with the
precise location to be approved by Landlord.

               ii. The generator and the appurtenant equipment shall be enclosed
and screened from view in accordance with the standards of Lehigh Valley
Corporation Center.

               iii. All conduits and cables connecting the generator with the
Building shall be run in areas that are planted, shall not cross areas of
paving or curbs, and shall be subject to Landlord's approval.

               iv. All work shall be performed at Tenant's sole expense
utilizing contractors approved by Landlord, in compliance with all applicable
Laws and Requirements. All planted areas disturbed by the installation or
removal of the generator and appurtenant facilities shall be restored to the
condition existing prior to disturbance by Landlord's landscaping contractor, at
Tenant's expense.

               v. Tenant shall be obligated to comply with the Pennsylvania One
Call System before digging any holes or trenches on the Property.

               vi. All penetrations of the Building made in connection with
conduits or cables connecting the generator to the Premises shall be made in
locations and utilizing methods approved by Landlord, and shall be properly
sealed.

               vii. At the expiration or sooner termination of the Term, Tenant
shall have the right to remove the generator. If Tenant exercises such right,
Tenant shall also remove the equipment associated with the generator, but shall
leave in place the concrete pad, the conduits and cables, and the screening and
enclosure.

                                       R-4

<PAGE>

34.  ADDITIONAL PROVISIONS RELATING TO OPERATION OF PROPERTY; PAYMENT OF
     EXPENSES

          a. Notwithstanding the provisions of subsection 7(a) to the contrary,
it is agreed that Annual Operating Expenses will not include costs incurred in
Landlord performing construction for a specific tenant, marketing costs, or
leasing commissions.

          b. The first sentence of subsection 7(e)(i) is hereby modified to read
in its entirety as follows:

               Landlord will furnish the Premises with electricity, heating,
               and air conditioning for the normal use and occupancy of the
               Premises as general offices between 8:00 A.M. and 6:00 P.M.,
               Monday through Friday (legal holidays excepted) and between 8:00
               A.M. and 1:00 P.M. Saturday (legal holidays excepted) ("Normal
               Hours").

          c. Landlord agrees to provide Tenant with heating and air conditioning
to the Premises outside of Normal Hours, provided that Tenant requests such
additional hours of operation at least one (1) business day in advance. During
the first five (5) lease years of the Term, Landlord agrees that the charges for
additional hours of HVAC operation will be as follows:

               i. $35.00 per hour if the additional HVAC requirement is
scheduled to be supplied for an uninterrupted period of one (1) week or longer;
and

               ii. $45.00 per hour if the additional HVAC requirement is
scheduled for a time period of less than one (1) full uninterrupted week.

          d. Notwithstanding the provisions of subsection 7(e)(ii) to the
contrary, Landlord has installed an electric submeter for the Premises at
Landlord's sole expense prior to the Commencement Date. Tenant shall be
obligated to pay to Landlord the cost of all electricity supplied to the
Premises as measured by such meter, as well as Tenant's Proportionate Share of
all utilities supplied to the Common Areas.

35.  ADDITIONAL PROVISIONS RELATING TO SIGNS

     There is an existing monument sign located on the Property. Tenant, at
Tenant's expense may install its name and logo on such sign, provided that
Tenant restricts the uses of such sign to one (1) line thereof, and further
provided that anything placed on such sign by Tenant must comply with the
standards of Lehigh Valley Corporation Center.

                                      R-5

<PAGE>

36.  ADDITIONAL PROVISIONS RELATING TO LANDLORD'S RIGHT TO RELOCATE TENANT;
     RIGHT OF ENTRY

          a. Subsection 11(a) is hereby deleted in its entirety.

          b. In subsection 1l(b) in the third line thereof, the time period of
"12 months" is hereby changed to "9 months."

37.  ADDITIONAL PROVISIONS RELATING TO ASSIGNMENT AND SUBLETTING

     In the event that Tenant submits to Landlord for its consent a proposed
assignment or subletting transaction, together with all information reasonably
necessary for Landlord to grant or withhold its consent, but Landlord does not
respond to Tenant within thirty (30) days of such completed submission, the
proposed assignment or subletting transaction shall be deemed approved by
Landlord as required by subsection 18(a). Notwithstanding such approval,
subsections 18(b) and 18(c) shall apply to any such assignment or subletting
transaction, as applicable.

38.  ADDITIONAL PROVISIONS RELATING TO SUBORDINATION

     Landlord represents to Tenant that the Property is not presently covered by
the lien of a mortgage. In the event that Landlord encumbers the Property with
the lien of a mortgage, Landlord will request and will use reasonable efforts to
obtain form the mortgagee an agreement that such mortgagee will not disturb
Tenant's possession under this Lease as long as Tenant is not in default of any
of its obligations hereunder. Such agreement may be in the form of such
mortgagee's standard Subordination, Nondisturbance and Attornment Agreement.

39.  ADDITIONAL PROVISIONS RELATING TO SURRENDER

     In subsection 21(c), in the fourth line thereof, the word "double" is
hereby replaced with the phrase "one and one-half (l 1/2) times."

40.  ADDITIONAL PROVISIONS RELATING TO DEFAULTS - REMEDIES

          a. The following phrase is hereby inserted at the beginning of
subsection 23(b)(ii): "Utilizing lawful process,..."

          b. If Landlord accelerates Tenant's obligations under this Lease
pursuant to the provisions of subsection 23(b)(iii), payment from Tenant to
Landlord of the accelerated obligations which would not have been due at the
time of payment, but for Tenant's default and the resulting acceleration, shall
be discounted to present value as of the date of such payment using the prime
rate of interest as published in The Wall Street Journal (or any successor
publication thereto) on the day before the date that payment is made, or, if
The Wall Street

                                       R-6

<PAGE>

Journal (or any successor publication thereto) continues to be regularly
published but is not published on the last mentioned date, using the prime rate
of interest as published in the immediately preceding edition of The Wall Street
Journal (or any successor publication thereto). If, at the relevant time,
neither The Wall Street Journal nor any successor publication thereto continues
to be regularly published, Landlord may substitute the prime rate of interest as
published in a similar nationally recognized financial publication. Payments by
Tenant shall first be applied to Landlord's costs; next to late charges; next to
interest accrued; next to Tenant's obligations that would have been due from
Tenant as of the date of payment had acceleration not occurred; and last to
Tenant's obligations which would not have been due at the date of payment, but
for the acceleration.

41.  ADDITIONAL PROVISIONS RELATING TO SECURITY DEPOSIT

     Provided that Landlord has not given Tenant notice of default more than two
(2) times preceding such date, and that there then exists no event of default by
Tenant under this Lease nor any event that with the giving of notice and/or the
passage of time would constitute a default, on or before thirty (30) days after
Tenant gives notice to Landlord that Tenant has realized positive net income for
the three (3) immediately preceding consecutive fiscal quarters, Landlord will
reduce the amount of the required security deposit to $32,083.33, and will
return to Tenant all portions of the security deposit then held by Landlord in
excess of such amount. In order to be effective, such notice form Tenant to
Landlord must include the following:

          a. A statement by Tenant's chief financial officer certifying that
Tenant has realized positive net income for the most recent three (3)
consecutive fiscal quarters of Tenant.

          b. Financial reports which provide reasonable backup for and
explanation of such statement.

          c. A request for the reduction of the security deposit and for the
refund of the excess security deposit being held by Landlord.

42.  ADDITIONAL PROVISIONS RELATING TO BUILDING RULES

     Notwithstanding the provisions of Building Rule No. 7 to the contrary, it
is agreed that Tenant may change locks or place additional locks on doors,
provided Tenant complies with the following terms and conditions:

          a. At all times, Landlord must have the ability to access all portions
of the Premises. Therefore, Tenant shall immediately furnish to Landlord such
keys, combinations, codes, or other means of access that may be necessary for
Landlord to have access to all portions of the Premises.

          b. In installing or changing any locks or similar security devices,
Tenant shall not make any alterations to any doors, door jambs, door frames, or
other components of the Premises without Landlord's prior written approval.

                                       R-7

<PAGE>

43.  TENANT'S SPECIAL RIGHT OF EARLY TERMINATION

     Provided that there then exists no event of default by Tenant under this
Lease nor any event that with the giving of notice and/or the passage of time
would constitute a default, if Tenant gives a notice to Landlord (a "Termination
Notice") on or before August 31, 2006, the Term of this Lease shall end
effective at 11:59 P.M., local time, on August 31, 2007; and, in such event, the
last mentioned date shall become the "Expiration Date" of the Term. In order for
the Termination Notice to be effective, it must comply with the following
conditions and requirements:

          a. It must be given by the required date, time being of the essence;
and

          b. It must be accompanied by the payment of a lease termination fee to
Landlord in the amount of $62,333.34, which is intended by the parties to be a
liquidated sum which is fair and reasonable as partial compensation to Landlord
for the loss of rental income for the balance of the Term as a result of such
permissible early termination.

44.  ADDITIONAL SPACE

     If and when any of the spaces located in the Building which are not part of
the Premises (each of which shall be an "Additional Space") first becomes
available for rental during the term of this lease and provided that Landlord
has not given Tenant notice of default more than two (2) times during the
immediately preceding twelve (12) months, that there then exists no event of
default by Tenant under this lease nor any event that with the giving of notice
and/or the passage of time would constitute a default, and that Tenant is the
sole occupant of the Premises, Tenant shall have the right of first offer to
lease all of the Additional Space, subject to the following:

          a. Landlord shall notify Tenant when the Additional Space first
becomes available for rental by any party other than the tenant then in
occupancy of the Additional Space and Tenant shall have seven (7) days following
receipt of such notice within which to notify Landlord in writing that Tenant is
interested in negotiating terms for leasing such Additional Space and to have
its offer considered by Landlord prior to the leasing by Landlord of the
Additional Space to a third party. If Tenant notifies Landlord within such time
period that Tenant is so interested, then Landlord and Tenant shall have 30 days
following Landlord's receipt of such notice from Tenant within which to
negotiate mutually satisfactory terms for the leasing of the Additional Space by
Tenant and to execute an amendment to this lease incorporating such terms.

          b. If Tenant does not notify Landlord within such seven (7) days of
its interest in leasing the Additional Space or if Tenant does not execute such
amendment or lease within such 30 days, if applicable, then this right of first
offer to lease the Additional Space will lapse and be of no further force or
effect, and Landlord shall have the right to lease all or part of the Additional
Space to any other party at any time on any terms and conditions acceptable to
Landlord.

          c. This right of first offer to lease the Additional Space is a
one-time right if and when each Additional Space first becomes available, is
personal to Tenant and is non-transferable to any assignee or sublessee
(regardless of whether any such assignment or sublease was made with or without
Landlord's consent) or other party.

                                      R-8

<PAGE>

          d. This right of first offer on behalf of Tenant shall be not be
exercisable by Tenant if Tenant has exercised its special right of early
termination pursuant to Section 43 above. Furthermore, unless Tenant has first
waived its right of early termination pursuant to Section 43 above, in a written
notice to Landlord, Tenant shall have no right to receive notice that an
Additional Space will be coming available or to lease such Additional Space
after August 31, 2004.

          e. Tenant's rights under this Section shall be subject subordinate to
any rights previously given to another tenant of the Building with regard to the
leasing of additional areas of the Building. Furthermore, Landlord shall have
the right to enter into an agreement with any tenant of space in the Building to
extend such tenant's term of occupancy, whether or not such tenant has the
right and option to extend the term of its lease, and, any such agreement
between Landlord and a tenant of the Building shall not be considered a
violation of Tenant's rights under this Section.

LANDLORD'S APPROVAL:                    /s/ Robert L. Kiel
                                        ----------------------------------------
                                        SENIOR VICE PRESIDENT, REGIONAL DIRECTOR

                                      R-9

<PAGE>

                                   EXHIBIT "B"
                         LEASE COMMENCEMENT CERTIFICATE

     The undersigned, as duly authorized officers and/or representatives of
LIBERTY PROPERTY LIMITED PARTNERSHIP ("Landlord") and ________________________
("Tenant"), hereby agree as follows with respect to the Lease Agreement (the
"Lease") between them for premises located at _________________________
__________________________ (the "Premises"):

     1.   DATE OF LEASE:     ________________, 20___

     2.   COMMENCEMENT DATE: ________________, 20___

     3.   EXPIRATION DATE:   ________________, 20___

     4.   Rent and operating expanses due on or before the Commencement Date for
          the period from the Commencement Date until the first day of the next
          calendar month (Not applicable if the Commencement Date is the first
          day of the calendar month):

<TABLE>
<S>                               <C>
APPORTIONED MINIMUM RENT:         $_______________
APPORTIONED OPERATING EXPENSES:   $_______________
TOTAL:                            $_______________
</TABLE>

          Thereafter regular monthly payments due in the following amounts until
          adjusted in accordance with the Lease:

<TABLE>
<S>                          <C>
MONTHLY RENT INSTALLMENT:    $_______________
MONTHLY OPERATING PAYMENT:   $_______________
TOTAL MONTHLY PAYMENT:       $_______________
</TABLE>

     5.   Tenant certifies that, as of the date hereof, (a) the Lease is in full
          force and effect and has not been amended, (b) Tenant has no offsets
          or defenses against any provision of the Lease and (c) Landlord has
          substantially completed any improvements to be performed by Landlord
          in accordance with the Lease, excepting the Punch List items set forth
          on the Schedule attached hereto and initialed by Landlord and Tenant,
          if any.

     IN WITNESS WHEREOF, Landlord and Tenant, intending to be legally bound,
have executed this Certificate as of _____________, 20___

                                        LANDLORD:

                                        LIBERTY PROPERTY LIMITED PARTNERSHIP

                                        By: Liberty Property Trust,
                                            Sole General Partner

                                        By:
                                            ------------------------------------
                                        Name: Robert L. Kiel
                                        Title: Senior Vice President,
                                               Regional Director

                                        TENANT:

                                        ----------------------------------------
Witness/Attest:

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

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

<PAGE>

                                   EXHIBIT "C"

                                 BUILDING RULES

     1. As stated in the lease, Tenant shall not use the Premises as a "place of
public accommodation" as defined in the Americans with Disabilities Act of 1990,
which identifies the following categories into one or more of which a business
must fail to be a "place of public accommodation":

          a.   Places of lodging (examples: hotel, motel)

          b.   Establishments serving food or drink (examples: bar, restaurant)

          c.   Places of exhibition or entertainment (examples: motion picture
               house, theater, stadium, concert hall)

          d.   Places of public gathering (examples: auditorium, convention
               center, lecture hall)

          e.   Sales or rental establishments (examples: bakery, grocery store,
               hardware store, shopping center)

          f.   Service establishments (examples: bank, laundromat, barber shop,
               funeral parlor, hospital, gas station, business offices such as
               lawyer, accountant, healthcare provider or insurance office)

          g.   Stations used for specified public transportation (examples: bus
               terminal, depot)

          h.   Places of public display or collection (examples: museum,
               library, gallery)

          i.   Places of recreation (examples: park, zoo, amusement park)

          j.   Places of education (examples: nursery, elementary, secondary,
               private or other undergraduate or postgraduate school)

          k.   Social service center establishments (examples: day-care center,
               senior citizen center, homeless shelter, food bank, adoption
               agency)

          l.   Places of exercise or recreation (examples: gym, health spa,
               bowling alley, golf course)

     2. Any sidewalks, lobbies, passages, elevators and stairways shall not be
obstructed or used by Tenant for any purpose other than ingress and egress from
and to the Premises. Landlord shall in all cases retain the right to control or
prevent access by all persons whose presence, in the judgment of Landlord, shall
be prejudicial to the safety, peace or character of the Property.

     3. The toilet rooms, toilets, urinals, sinks, faucets, plumbing or other
service apparatus of any kind shall not be used for any purposes other than
those for which they were installed, and no sweepings, rubbish, rags, ashes,
chemicals or other refuse or injurious substances shall be placed therein or
used in connection therewith or left in any lobbies, passages, elevators or
stairways.

     4. Tenant shall comply with all safely, fire protection and evacuation
procedures and regulations established by Landlord or any governmental agency.
No person shall go on the roof without Landlord's permission.

     5. Skylights, windows, doors and transoms shall not be covered or
obstructed by Tenant, and Tenant shall not install any window covering which
would affect the exterior appearance of the Building, except as approved in
writing by Landlord. Tenant shall not remove, without Landlord's prior written
consent, any shades, blinds or curtains in the Premises.

     6. Without Landlord's prior written consent, Tenant shall not hang,
install, mount, suspend or attach anything from or to any sprinkler, plumbing,
utility or other lines. If Tenant hangs, installs, mounts, suspends or attaches
anything from or to any doors, windows, walls, floors or ceilings, Tenant shall
sand and spackle all holes and repair any damage caused thereby or by the
removal thereof at or prior to the expiration or termination of the lease.
Without Landlord's prior written consent, no walls or partitions shall be
painted, papered or otherwise covered or moved in any way or marked or broken;
nor shall any connection be made to electric wires for running fans or motors or
other apparatus, devices or equipment; nor shall machinery of any kind other
than customary small business machines be allowed in the Premises; nor shall
Tenant use any other method of heating, air conditioning or air cooling than
that provided by Landlord; nor shall any mechanics be allowed to work in or
about the Building other than those employed by Landlord.

     7. Tenant shall not change any locks nor place additional locks upon any
doors and shall surrender all keys and passes at the end of the Term.

     8. Tenant shall not use nor keep in the Building any matter having an
offensive odor, nor explosive or highly flammable material, nor shall any
animals other than seeing eye dogs in the company of their masters be brought
into or kept in or about the Premises.

                                      C-1

<PAGE>

     9. If Tenant desires to introduce electrical, signaling, telegraphic,
telephonic, protective alarm or other wires, apparatus or devices, Landlord
shall direct where and how the same are to be placed, and except as so directed,
no installation boring or cutting shall be permitted. Landlord shall have the
right to prevent and to cut off the transmission of excessive or dangerous
current of electricity or annoyances into or through the Building or the
Premises and to require the changing of wiring connections or layout at Tenant's
expense, to the extent that Landlord may deem necessary, and further to require
compliance with such reasonable rules as Landlord may establish relating
thereto, and in the event of non-compliance with the requirements or rules.
Landlord shall have the right immediately to cut wiring or to do what it
considers necessary to remove the danger, annoyance or electrical interference
with apparatus in any part of the Building. All wires installed by Tenant must
be clearly tagged at the distributing boards and junction boxes and elsewhere
where required by Landlord, with the number of the office to which said wires
lead, and the purpose for which the wires respectively are used, together with
the name of the concern, if any, operating same.

     10. Tenant shall not place weights anywhere beyond the safe carrying
capacity of the Building which is designed to normal office building standards
for floor loading capacity. Landlord shall have the right to exclude from the
Building heavy furniture, safes and other articles which may be hazardous or to
require them to be located at designated places in the Premises. Tenant shall
obtain Landlord's written consent prior to the installation of any vending
machines in the Premises.

     11. The use of rooms as sleeping quarters is strictly prohibited at all
times.

     12. Tenant shall have the right, at Tenant's sole risk and responsibility,
to use its proportional share of the parking spaces at the Property as
reasonably determined by Landlord. Tenant shall comply with all parking
regulations promulgated by Landlord from time to time for the orderly use of the
vehicle parking areas, including without limitation the following: Parking shall
be limited to automobiles, passenger or equivalent vans, motorcycles, light four
wheel pickup trucks and (in designated areas) bicycles. No vehicles shall be
left in the parking lot overnight. Parked vehicles shall not be used for vending
or any other business or other activity while parked in the parking areas.
Vehicles shall be parked only in striped parking spaces, except for loading and
unloading, which shall occur solely in zones marked for such purpose, and be so
conducted as to not unreasonably interfere with traffic flow within the Property
or with loading and unloading areas of other tenants. Employee and tenant
vehicles shall not be parked in spaces marked for visitor parking or other
specific use. All vehicles entering or parking in the parking areas shall do so
at owner's sole risk, and Landlord assumes no responsibility for any damage,
destruction, vandalism or theft. Tenant shall cooperate with Landlord in any
measures implemented by Landlord to control abuse of the parking areas,
including without limitation access control programs, tenant and guest vehicle
identification programs, and validated parking programs, provided that no such
validated parking program shall result in Tenant being charged for spaces to
which it has a right to free use under its lease. Each vehicle owner shall
promptly respond to any sounding vehicle alarm or horn, and failure to do so may
result in temporary or permanent exclusion of such vehicle from the parking
areas. Any vehicle which violates the parking regulations may be cited, towed at
the expense of the owner, temporarily or permanently excluded from the parking
areas, or subject to other lawful consequence.

     13. Tenant shall not smoke in the Building which Landlord has designated as
a non-smoking building.

     14. Canvassing, soliciting and distribution of handbills or any other
written material, and peddling in the Building are prohibited, and Tenant shall
cooperate to prevent same.

     15. Tenant shall provide Landlord with a written identification of any
vendors engaged by Tenant to perform services for Tenant at the Premises
(examples: security guards/monitors, telecommunications installers/maintenance).
Tenant shall permit Landlord's employees and contractors and no one else to
clean the Premises unless Landlord consents in writing. Tenant assumes all
responsibility for protecting its Premises from theft and vandalism and Tenant
shall see each day before leaving the Premises that all lights are turned out
and that the windows and the doors are closed and securely locked.

     16. Landlord shall provide Tenant with the move-in and move-out policies
for the Building with which Tenant shall comply. Throughout the Term, no
furniture, packages, equipment, supplies or merchandise of Tenant will be
received in the Building, or carried up or down in the elevators or stairways,
except during such hours as shall be designated by Landlord, and Landlord in all
cases shall also have the exclusive right to prescribe the method and manner in
which the same shall be brought in or taken out of the Building. At the end of
the Term, Tenant's obligations regarding surrender of the Premises shall include
Tenant's obligation to shampoo all carpet, strip and re-wax all vinyl composite
tile and replace any damaged ceiling tiles, the cost of which obligations shall
be deducted from the Security Deposit if not completed by Tenant prior to the
Expiration Date.

                                       C-2

<PAGE>

     17. Tenant shall not place oversized cartons, crates or boxes in any area
for trash pickup without Landlord's prior approval. Landlord shall be
responsible for trash pickup of normal office refuse placed in ordinary office
trash receptacles only. Excessive amounts of trash or other out-of-the-ordinary
refuse loads will be removed by Landlord upon request at Tenant's expense.

     18. Tenant shall cause all of Tenant's Agents to comply with these Building
Rules.

     19. Landlord reserves the right to rescind, suspend or modify any rules or
regulations and to make such other rules and regulations as, in Landlord's
reasonable judgment, may from time to time be needed for the safety, care,
maintenance, operation and cleanliness of the Property. Notice of any action by
Landlord referred to in this paragraph, given to Tenant, shall have the same
force and effect as if originally made a part of the foregoing lease. New rules
or regulations will not, however, be unreasonably inconsistent with the proper
and rightful enjoyment of the Premises by Tenant under the lease.

     20. These Building Rules are not intended to give Tenant any rights or
claims in the event that Landlord does not enforce any of them against any other
tenants or if Landlord does not have the right to enforce them against any other
tenants and such non-enforcement will not constitute a waiver as to Tenant.

     21. Tenant shall be deemed to have read these Building Rules and to have
agreed to abide by them as a condition to Tenant's occupancy of the Premises.

                                       C-3

<PAGE>

                                   EXHIBIT "D"

                                CLEANING SERVICES

        Prepared For: LIBERTY PROPERTY TRUST

Areas to be serviced: 1525 Valley Center Parkway
                      Bethlehem, PA 18017

COMMON AREAS, VESTIBULE, LOBBY, STAIRWELLS & CORRIDOR, RESTROOMS, ELEVATORS

<TABLE>
<CAPTION>
                                                                         DAILY     WEEKLY
                                                                         -----   ---------
<S>                                                                      <C>     <C>
GENERAL HOUSEKEEPING
Empty waste receptacles                                                    X
Sanitize and replace liners in waste receptacles as needed                 X
Wipe down wall near waste receptacles                                      X
Wipe down trash containers as needed                                                 X
Empty paper recycle receptacles                                            X
Remove boxes marked "trash"                                                X
Remove all trash to designated area                                        X
Clean and sanitize drinking fountains                                      X
Dust horizontal surfaces to hand height                                    X
Dust horizontal surfaces above hand height with proper tools                     AS NEEDED
Remove dust and cobwebs from ceiling areas with proper tools                     AS NEEDED
Spot clean reception lobby door glass entrances                            X
Clean entire lobby glass doors                                                       X
Clean exterior ash urns                                                    X
Clean and sanitize drinking fountains                                      X

TILE FLOORS
Dry mop                                                                    X
Damp mop (general purpose cleaner)                                         X

CARPET
Vacuum traffic lanes                                                       X
Wall to wall detailed vacuum                                                         X

RESTROOMS
Clean and sanitize all fixtures                                            X
Clean glass and mirrors                                                    X
</TABLE>

                                       D-1

<PAGE>

<TABLE>
<S>                                                                      <C>     <C>
Spot clean wall, dispensers and partitions                                 X
Empty waste receptacles                                                    X
Sanitize and replace liners in waste receptacles as needed                 X
Wipe down trash containers as needed                                       X
Refill all dispensers (hand soap, paper products and sanitary napkins)     X
Dust horizontal surfaces to hand height                                    X
Dust horizontal surfaces above hand height                                           X
Dry mop                                                                    X
Damp mop (with an approved disinfectant)                                   X

LOUNGE AREAS

STAIRWELLS (Dust, high and low. Dry and wet mop)                                     X

MISCELLANEOUS SERVICES
</TABLE>

                                       D-2

<PAGE>

                                CLEANING SERVICES

Areas to be serviced:
OFFICES

<TABLE>
<CAPTION>
                                                                         DAILY     WEEKLY
                                                                         -----   ---------
<S>                                                                      <C>     <C>
GENERAL HOUSEKEEPING
Empty waste receptacles                                                    X
Replace liners in waste receptacles as needed                              X
Wipe down wall near waste receptacles                                                X
Empty paper recycle receptacles                                                      X
Remove any boxes marked "trash"                                            X
Remove all trash to designated area (protect floors from leakage)          X
Clean and sanitize telephone handsets                                                X
Clean and sanitize drinking fountains                                      X
Dust areas of furniture, desks, chairs, and tables                         X
Dust areas of filing cabinets, bookcases and shelves                       X
Dust horizontal surfaces to hand height                                    X
Dust horizontal surfaces above hand height                                           X
Remove dust and cobwebs from ceiling areas                                           X
Spot clean visible areas of desk tops (do not disturb any paper, etc.)     X
Spot clean reception lobby glass including front door                      X
Spot clean glass in partitions and doors through office space                    AS NEEDED

TILE
Dry mop                                                                    X
Spot (damp) mop                                                            X
Damp mop                                                                             X

CARPET
Vacuum traffic lanes                                                       X
Wall to wall detailed vacuum                                                         X

RESTROOMS
</TABLE>

DATE LAST REVISED: 11/20/00

FILE NAME: CLEANING SERVICES

                                      D-3

<PAGE>

                                   EXHIBIT "E"

                           TENANT ESTOPPEL CERTIFICATE

     Please refer to the documents described in Schedule 1 hereto, (the "Lease
Documents") including the "Lease" therein described; all defined terms in this
Certificate shall have the same meanings as set forth in the Lease unless
otherwise expressly set forth herein. The undersigned Tenant hereby certifies
that it is the tenant under the Lease. Tenant hereby further acknowledges that
it has been advised that the Lease may be collaterally assigned in connection
with a proposed financing secured by the Property and/or may be assigned in
connection with a sale of the Property and certifies both to Landlord and to any
and all prospective mortgagees and purchasers of the Property, including any
trustee on behalf of any holders of notes or other similar instruments, any
holders from time to time of such notes or other instruments, and their
respective successors and assigns (the "Mortgagees") that as of the date hereof.

     1. The information set forth in attached Schedule 1 is true and correct.

     2. Tenant is in occupancy of the Premises and the Lease is in full force
and effect, and, except by such writings as are identified on Schedule 1, has
not been modified, assigned, supplemented or amended since its original
execution, nor are there any other agreements between Landlord and Tenant
concerning the Premises, whether oral or written.

     3. All conditions and agreements under the Lease to be satisfied or
performed by Landlord have been satisfied and performed.

     4. Tenant is not in default under the Lease Documents, Tenant has not
received any notice of default under the Lease Documents, and, to Tenant's
knowledge, there are no events which have occurred that, with the giving of
notice and/or the passage of time, would result in a default by Tenant under the
Lease Documents.

     5. Tenant has not paid any Rent due under the Lease more than 30 days in
advance of the date due under the Lease and Tenant has no rights of setoff,
counterclaim, concession or other rights of diminution of any Rent due and
payable under the Lease except as set forth in Schedule 1.

     6. To Tenant's knowledge, there are no uncured defaults on the part of
Landlord under the Lease Documents, Tenant has not sent any notice of default
under the Lease Documents to Landlord, and there are no events which have
occurred that, with the giving of notice and/or the passage of time, would
result in a default by Landlord thereunder, and that at the present time Tenant
has no claim against Landlord under the Lease Documents.

     7. Except as expressly set forth in Part G of Schedule 1, there are no
provisions for any, and Tenant has no, options with respect to the Premises or
all or any portion of the Property.

     8. Except as set forth on Part M of Schedule 1, no action, voluntary or
involuntary, is pending against Tenant under federal or state bankruptcy or
insolvency law.

     9. The undersigned has the authority to execute and deliver this
Certificate on behalf of Tenant and acknowledges that all Mortgagees will rely
upon this Certificate in purchasing the Property or extending credit to Landlord
or its successors in interest.

     10. This Certificate shall be binding upon the successors, assigns and
representatives of Tenant and any party claiming through or under Tenant and
shall inure to the benefit of all Mortgagees.

     IN WITNESS WHEREOF, Tenant has executed this Certificate this ___ day
of ___________, 19___.

                                        ----------------------------------------
                                        Name of Tenant

                                        By: /s/ LAWRENCE R. IRVING
                                            ------------------------------------
                                        Title:
                                               ---------------------------------

                                      E-1

<PAGE>

                    SCHEDULE 1 TO TENANT ESTOPPEL CERTIFICATE

                 Lease Documents, Lease Terms and Current Status

A.   Date of Lease:

B.   Parties:

     1.   Landlord:

     2.   Tenant d/b/a:

C.   Premises known as:

D.   Modifications, Assignments, Supplements or Amendments to Lease:

E.   Commencement Date:

F.   Expiration of Current Term:

G.   Options:

H.   Security Deposit Paid to Landlord: $__________

I.   Current Fixed Minimum Rent (Annualized): $__________

J.   Current Additional Rent (and if applicable, Percentage Rent) (Annualized):
     $__________

K.   Current Total Rent: $__________

L.   Square Feet Demised:

M.   Tenant's Bankruptcy or other Insolvency Actions:

                                       E-2<PAGE>
                                                                    Exhibit 10.7

                                 LEASE AGREEMENT

                                      Dated

                                November 28, 2005

                                     Between

                                 APPLE TREE LLC

                                  as "Landlord"

                                       and

                            Synchronoss Technologies,
                                      Inc.

                                   as "Tenant"

                                       in

                               REDMOND TOWN SQUARE

<PAGE>

                          STANDARD TERMS AND CONDITIONS

<TABLE>
<CAPTION>
Provision                                                                Section
---------                                                                -------
<S>                                                                      <C>
Lease Data and Exhibits                                                      1

                          GENERAL TERMS AND CONDITIONS

Premises                                                                     2
Term                                                                         3
Rent                                                                         4
Security Deposit                                                             5
Uses                                                                         6
Services & Utilities                                                         7
Costs of Services & Utilities                                                8
Property Taxes                                                               9
Tax on Rentals                                                              10
Improvements                                                                11
Alterations & Care of Premises                                              12
Acceptance of Premises                                                      13
Special Improvements                                                        14
Access                                                                      15
Damage or Destruction                                                       16
Waiver of Subrogation                                                       17
Indemnification & Insurance                                                 18
Assignment & Subletting                                                     19
Advertising                                                                 20
Liens & Insolvency                                                          21
Defaults                                                                    22
Priority                                                                    23
Removal of Property                                                         24
Nonwaiver                                                                   25
Surrender of Possession                                                     26
Holdover                                                                    27
Condemnation                                                                28
Notices                                                                     29
Costs & Attorney's Fees                                                     30
Landlord's Liability                                                        31
Estoppel Certificates                                                       32
Transfer of Landlord's Interests                                            33
Right to Perform                                                            34
Relocation of Premises                                                      35
Parking                                                                     36
Execution of Lease by Landlord                                              37
General Provisions                                                          38
</TABLE>

Signature Pages

                  Exhibit A - LEGAL DESCRIPTION OF LAND
                  Exhibit B - FLOOR PLAN OF PREMISES
                  Exhibit C - STANDARD TENANT IMPROVEMENTS
                  Exhibit D - RULE AND REGULATIONS

<PAGE>

                                 LEASE AGREEMENT

     THIS LEASE made this 28th day of November, 2005, between APPLE TREE LLC, A
LIMITED L1ABILTY CORPORATION formed under the laws of the State of Washington,
("Landlord"), and Synchronoss Technologies, Inc., a Delaware Corporation
("Tenant").

     As parties hereto, Landlord and Tenant hereby agree as follows:

     1. LEASE DATA AND EXHIBITS

          (a) LEASED PREMISES. The leased premises (the "Premises") are situated
on the real property as more particularly described in Exhibit A attached hereto
(the "Land"), and consist of 1,959 RENTABLE SQUARE FEET located on the THIRD
floor of the Building, as outlined on the floor plan attached hereto as Exhibit
B. The address is 8201 164th Ave NE in Redmond, King County, Washington (the
"Building"). The Premises shall include the Tenant improvements, if any, set
forth and initialed in Exhibit C hereto.

          (b) AGREED FLOOR AREAS. The Agreed Floor Area of the Premises is 1,959
rentable square feet and The Agreed Floor Area of the Building is 39,575
rentable square feet.

          (c) LEASE TERM. The lease term shall be for 24 MONTHS, commencing on
JANUARY 3,2006 and expiring on JANUARY 2, 2008 or such earlier or later dates as
provided in Section 3 hereof.

          (d) RENT. The rent shall be payable as described below in advance on
or before the first day of each month without offset or deduction at the offices
of Leibsohn & Company 11100 NE 8th Street Suite 800 Bellevue, WA. 98004 or such
other place as the Landlord shall direct in writing.

               Month 1-12   $ 2,938.50 per month, NNN
               Months 13-24 $ 3,101.75 per month, NNN

               Tenant has deposited with Landlord on the date hereof $2,938.50
to be applied to the first monthly rental payment due hereunder.

          (e) SECURITY DEPOSIT. The security deposit shall be $3101.75 in cash.

          (f) PERMITTED USES. The Premises shall be used only for general office
purposes and no other purpose or use without the written consent of Landlord
("Permitted Uses").

          (g) PARKING. Tenant shall have the right to park in the common parking
areas on a ratio of 3.25 stalls for each 1,000 square feet of usable space, in
common with all other Tenants in the Redmond Town Square Building.

          (h) BROKERS. Tenant was represented by GVA Kidder Mathews in this
lease transaction and Landlord was represented in this lease transaction by
Craig Levine of Washington Partners, Inc, licensed real estate brokers. No other
finder or broker participated in this lease transaction or is entitled to
compensation on account of this lease transaction.

                                        1

<PAGE>

                          GENERAL TERMS AND CONDITIONS

     2. PREMISES. Landlord does hereby lease to Tenant, and Tenant does hereby
lease from Landlord, upon the terms and conditions herein set forth, the
Premises described in Section 1(a) hereof.

     3. TERM. The lease term shall be for the period stated in Section 1(c)
hereof. The lease term shall commence on the commencement date specified in
Section 1(c)., if any, or on such earlier or later date as may be specified by
written notice delivered by Landlord to Tenant advising Tenant that the Premises
will be ready for occupancy and specifying the commencement date, which shall
not be less than 7 days following the date of such notice; provided, however,
that if this Lease is executed prior to substantial completion of the Building
as described in Section 1(a) the commencement and termination dates of this
Lease may at Landlord's sole option be extended by any period not to exceed one
year from the date specified in Section 1(c) because of delays due to
casualties, acts of God, acts of Tenant, strikes, shortages of labor or
materials or other causes beyond the reasonable control of Landlord. If Tenant
shall occupy the Premises prior to the date specified in Section 1(c) of this
Lease then the commencement date shall be the date of such occupancy. Neither
Landlord nor any agent or employee of Landlord shall be liable for any damage or
loss due to Landlord's inability or failure to deliver possession of the
Premises to Tenant as provided herein.

     4. RENT. Tenant shall pay Landlord the monthly rent stated in Section l(d)
hereof without demand, deduction or offset, payable in lawful money of the
United States in advance on or before the day specified in Section 1(d) to
Landlord at the offices of Landlord or its building manager at the place
specified in Section l(d), or to such other party or at such other place as
Landlord may hereafter from time to time designate in writing. Rental for any
partial month at the beginning or end of the lease terms shall be prorated.
Notwithstanding anything in Section 8 hereof, the rent payable by Tenant shall
in no event be less than the rent specified in Section l(d) of this Lease.

     5. SECURITY DEPOSIT. As security for the full and faithful performance of
every covenant or condition of this Lease to be performed by Tenant, Tenant has
paid to Landlord the sum specified in Section 1(e) hereof, the receipt of which
is hereby acknowledged. If Tenant shall breach or default with respect to any
covenant or condition or this Lease, including but not limited to the payment of
rent, Landlord may apply all or any part of such deposit to the payment of any
sum in default or any damage suffered by Landlord as a result of such breach or
default, or other sum which Landlord may be required to spend or incur by reason
of Tenant's breach or default or any other sum which Landlord may in its
reasonable discretion deem necessary to spend or incur by reason of Tenant's
breach or default, and in such event, Tenant shall upon the reasonable request
of Landlord deposit with Landlord the amount so applied so that Landlord shall
have the full deposit on hand at all times during the term of this Lease;
provided that such request is accompanied by a written accounting of any sum
incurred or spent by Landlord for any such breach or default by Tenant. Any
payment to Landlord from the security deposit shall not be construed as a
payment of liquidation damages. If Tenant shall have fully complied with all of
the covenants and conditions of this Lease, but not otherwise, such sum shall be
repaid to Tenant with interest within 30 days after expiration or sooner
termination of this Lease.

     6. USES. The Premises are to be used only for the uses specified in Section
1(f) hereof (the "Permitted Uses"), and for no other business or purpose
without the written consent of Landlord. No act shall be done in or about the
Premises that is unlawful or that would be reasonably expected to increase the
existing rate of insurance on the Building. Tenant shall not commit or allow to
be committed any waste upon the Premises, or any public or private nuisance or
other act or thing which disturbs the quiet enjoyment of any other tenant in the
Building. Tenant shall not, without the written consent of Landlord, use any
apparatus, machinery or device in or about the Premises which will cause any
substantial noise or vibration of any increase in the normal use of electric
power. If any of Tenant's office machines and equipment should disturb the quiet
enjoyment of any other tenant in the Building, the Tenant shall provide adequate
insulation, or take such other action as may be necessary to eliminate the
disturbance Tenant shall comply with all laws relating to its use of the
Premises and shall observe such reasonable rules and regulations as may be
adopted and published by Landlord from time to time for the safety, care and
cleanliness of the Premises or the Building, and for the preservation of good
order therein, including but not limited to any rules and regulations attached
to this Lease. Landlord makes no representations regarding the zoning of the
Building, or the legality of any particular use or uses of the Premises.

     7. SERVICES AND UTILITIES. Landlord shall maintain the Premises and the
public and common areas of the Building, such as lobbies, stairs, corridors and
/or restrooms, in reasonably good order and condition except for damage
occasioned by the act or omission of Tenant, the repair of which damage shall be
paid by Tenant.

                                        2

<PAGE>

     Between 7:00 a.m. and 6:00 p.m., Monday through Friday and between 8:00
a.m. and 1:00 p.m., Saturday (excluding legal holidays), Landlord shall furnish
the Premises with electricity for lighting and operation of low power usage
office machines, water, heat and normal air conditioning, and elevator service.
Landlord shall also provide light replacement service for Landlord-furnished
light, toilet room supplies, window washing at reasonable intervals, and
customary building janitorial service. No janitorial service shall be provided
on Saturdays, Sundays or holidays. Tenant shall pay for after hours HVAC at the
Landlord's cost which may be included in the monthly rent

     The landlord intends to take advantage of recycling programs offered by
waste disposal or waste management providers. Tenant agrees to cooperate with
the landlords recycling efforts which operation shall include the following: (1)
placement of recycling receptacles, supplied by the landlord at each employee's
workstation and other appropriate locations, (2) encouraging all employees to
properly use the recycling receptacles and otherwise follow the recycling plan,
(3) all other reasonable effort to permit the landlord full participation in all
recycling programs.

     Landlord shall not be liable for any loss, injury or damage to property
caused by or resulting from any variation, interruption, or failure of such
services due to any cause whatsoever or from failure to make any repairs or
perform any maintenance, except for such variations, interruptions or failures
caused by the gross negligence or willful misconduct of Landlord. In the event
of such variation, interruption or failure, however, Landlord shall use
reasonable diligence to restore such service. No temporary interruption or
failure of such service incident to the making or repairs, alterations or
improvements, or due to accident or strike, or condition or events beyond
Landlord's reasonable control shall be deemed an eviction of Tenant or relive
Tenant from any of Tenant's obligations hereunder.

     Before installing any equipment in the Premises that generate more than a
minimum amount of heat, Tenant shall obtain the written permission of Landlord
and Landlord may refuse to grant such permission if the amount of heat generated
would place an above average burden on the air-conditioning system of the
Building unless Tenant shall agree to pay at Landlord's election: (a) the costs
of Landlord for installation, operation and maintenance of supplementary
air-conditioning units as necessitated by such equipment or (b) an amount
determined by Landlord to cover the additional burden on the existing
air-conditioning system generated by such Tenant equipment.

     If Tenant uses any equipment in the Premises requiring above average power
usage (including but not limited to computers and data processing equipment and
nonstandard office equipment), Tenant shall in advance, on the first day of each
month during the lease term, pay Landlord as additional rent the reasonable
amount estimated by Landlord as the cost of furnishing electricity for the
operation of such equipment. The monthly rent stated in Section l(d) hereof does
not include any amount to cover the cost of furnishing electricity for such
purpose unless so stated therein.

     Tenant shall pay prior to delinquency all personal property taxes with
respect to all property of Tenant located on the Premises or the Building and
shall provide promptly upon request of Landlord written proof of such payment.

8. COSTS OF SERVICES AND UTILITIES. This is a "Net, Net, Net" lease. In addition
to the rent provided in Section 1(d) of this Lease, Tenant shall be responsible
for paying, as additional rent, its' share of the "operating costs" of the
property. These rental charges shall be adjusted annually to reflect changes in
Landlord's total cost of operating the Building. The adjustment shall be made as
follows:

     8.1 DEFINITIONS. As used herein, the following terms shall have the
following respective meanings unless the context otherwise specifies or clearly
requires.

     "Lease Year" shall mean a calendar year commencing January 1 and ending
December 31.

     "Operating Costs" shall mean all expenses paid or incurred by Landlord for
maintaining, operating and repairing the Building (including the parking
facilities), the Land, and the personal property used in conjunction therewith,
including but not limited to all expenses paid or incurred by Landlord for
Property Taxes, as defined in Section 9 below, electricity, water, gas sewers,
refuse collection, telephone charges not chargeable to tenants and similar
utilities service; the cost of supplies, janitorial and cleaning services,
window washing, insurance, cost of services of independent contractors, repair,
replacements, management fees, cost of compensation (including employment taxes
and fringe benefits) of all persons who perform duties in connection with such
Operating Costs and any other expense or charge which in accordance with
generally accepted accounting and management principles would be considered an
expense of maintaining, operating or repairing the Building.

     "Actual Direct Costs" shall mean the actual expenses paid or incurred by
Landlord for Operating Costs

                                       3

<PAGE>

during any Lease Year of the term hereof.

     "Actual Direct Costs Allocable to the Premises" shall mean the same
proportion of the Actual Direct Costs as the Agreed Floor Area of the Premises
bears to the Agreed Floor Area of the Building, as set forth in Section 1 (b).

     "Estimated Direct Costs Allocable to the Premises" shall mean Landlord's
estimate of Actual Direct Costs Allocable to the Premises for the following
Lease Year to be given by Landlord to Tenant pursuant to Section 8.3.

     8.2 RENTAL ADJUSTMENT FOR ESTIMATED COSTS. Landlord shall furnish Tenant a
written statement of Estimated Costs Allocable to the Premises for each Lease
Year, and a calculation of rental adjustment as follows: One-twelfth (1/12) of
the amount of the Estimated Direct Costs Allocable to the Premises shall be
added to the monthly rent payable by Tenant under this Lease for each month
during such Lease Year. If such Estimated Direct Costs Allocable to the Premises
are furnished after the commencement of the Lease Year, Tenant shall also make a
retroactive lump-sum payment, within fifteen (15) days, equal to the amount of
such monthly excess multiplied by the number of months during the Lease Year for
which no such adjustment was paid.

     8.3 ACTUAL COSTS. After the close of each Lease Year during the term
hereof, Landlord shall deliver to Tenant a written statement setting forth the
Actual Direct Costs Allocable to the Premises during the preceding Lease Year,
accompanied by a written accounting of such Actual Direct Costs Allocable to the
Premises. If such costs for any Lease Year exceed the Estimated Direct Costs
Allocable to the Premises paid by Tenant to Landlord pursuant to Section 8.2 for
such Lease Year, Tenant shall pay the amount of such excess to Landlord as
additional rental within 30 days after receipt of such statement by Tenant. If
such statement shows such costs to be less than the amount paid by Tenant to
Landlord pursuant to Section 8.2, then the amount of such overpayment shall be
credited toward the next monthly rental payable by Tenant.

     8.4 DETERMINATIONS. The determination of Actual Direct Costs Allocable to
the Premises and Estimated Direct Costs Allocable to the Premises shall be made
by the Landlord. Any amounts payable by Tenant pursuant to this Section shall be
additional rent payable by Tenant hereunder and in the event of nonpayment
thereof, Landlord shall have similar rights with respect to such nonpayment as
it has with respect to such nonpayment as it has with respect to any other
nonpayment of rent hereunder.

     8.5 END OF TERM. If this Lease shall terminate on a day other than the last
day of a Lease Year, the amount of any adjustment between Estimated and Actual
Direct Costs Allocable to the Premises with respect to the Lease Year in which
such termination occurs shall be prorated on the basis which the number of days
from the commencement of such Lease Year to and including such termination dated
bears to 365, and any amount payable by Landlord to Tenant or Tenant to Landlord
with respect to such adjustment shall be payable within 30 days after delivery
of the statement of Actual Direct Costs Allocable to the Premises with respect
to such Lease Year.

     9. PROPERTY TAXES. "Property Taxes" shall mean all real property taxes and
assessments and personal property taxes, charges and assessments levied with
respect to the Land, the Building, any improvements, fixtures and equipment, and
all other property of Landlord, real or personal, located in or on the Building
and used in connection with the operation of the Building.

     10. TAX ON RENTALS. If any governmental authority shall in any manner levy
a tax on rentals payable under this Lease or rentals accruing from use of
property, or such a tax in any form against Landlord measured by income derived
from the leasing or rental of the Building, such tax shall be paid by Tenant
either directly or through Landlord; provided, however, that Tenant shall not be
liable to pay any net income tax imposed on Landlord.

     11. IMPROVEMENTS, All standard or special Tenant improvements listed on
Exhibit C hereto, or paid for by Landlord, shall at all times be the property of
Landlord. Subject to Section 24 hereof, upon the expiration or sooner
termination of this Lease, all improvements and additions to the Premises made
by Tenant shall become the property of Landlord.

     12. ALTERATIONS AND CARE OF PREMISES. Tenant shall take good care of the
Premises and shall promptly make all necessary repairs and maintenance, except
those to be made by Landlord as provided herein.

     Tenant shall, at the expiration or sooner termination of this Lease,
surrender and deliver the Premises to Landlord in as good condition as when
received by Tenant from Landlord or as thereafter improved, reasonable use and
wear and damage by fire or other insured casualty excepted.

     Tenant shall not make any alterations, additions or improvements in or to
the Premises, or make changes to locks on doors, or add disturb or in any way
change any floor covering, wall covering, fixtures,

                                        4

<PAGE>

plumbing or wiring without first obtaining the written consent of Landlord,
which consent shall not be unreasonably withheld. Tenant shall deliver to
Landlord full and complete plans and specifications for any such alteration,
addition or improvement.

     Landlord does not and will not make any covenant or warranty, express or
implied, that any such plans or specifications submitted by Tenant are accurate,
complete or in any way suited for their intended purpose. Further, Tenant shall
indemnify and hold Landlord harmless from any liability, claim or suit,
including attorneys' fees, arising from any injury, damage, cost or loss
sustained by persons or property as a result of any defect in design, material
or workmanship related to work performed by or for or plans or specifications
submitted by Tenant.

     All such work so done by Tenant shall be done in accordance with all laws,
ordinances, and rules and regulations of any federal, state, county, municipal
or other public authority and/or Board of Fire Underwriters. Tenant expressly
covenants and agrees that no liens of Mechanics, materialmen, laborers,
architects, artisans, contractors, subcontractors, or any other lien of any kind
whatsoever shall be created against or imposed upon the Premises, the Land or
the Building, and that in the event any such claims or liens of any kind
whatsoever shall be asserted or filed by any persons, firms or corporations
performing labor or furnishing material in connection with such work, Tenant
shall pay off or cause the same to be discharged of record or bonded within 10
days of notification thereof. All alternations, improvements, or changes made by
Tenant to the Premises shall become the property of Landlord and shall remain
upon and be surrendered with the Premises upon the termination of this Lease.

     Tenant acknowledges and agrees that a material condition to the granting of
approval of Landlord to any alterations and/or improvements and/or repairs
required under this Lease or desired by Tenant is that the contractors who
perform such work shall carry a Comprehensive Liability Policy covering both
bodily injury, in the amount of $100,000 per person and $300,000 aggregate, and
property damages, in the amount of $300,000, at Tenant's expense. Landlord may
require proof of such insurance coverage from each contractor at the time of
submission of Tenant's request for Landlord's consent to commence work.

     All damage or injury done to the Building or the Premises or any
appurtenances to either by Tenant, or by Tenant's agents, invitees, licensees,
or employees, or by any other persons who may be in the Building or upon the
Premises with the consent of Tenant, including the cracking or breaking of glass
of any windows and doors, shall be paid for by Tenant. Tenant shall not put
curtains, draperies or other hangings on or beside the windows in the Premises
or place any furniture on the patios, if any, without first obtaining Landlord's
consent. All normal repairs necessary to maintain the Premises in a tenantable
condition shall be done by or under the direction of Landlord and at Landlord's
expense except as otherwise provided herein. Tenant shall promptly notify
Landlord of any damage to the Premises requiring repair. Landlord shall be the
sole judge as to what repairs are necessary.

     13. ACCEPTANCE OF PREMISES. If this Lease shall be entered into prior to
the completion of construction of the Building or Tenant improvements in the
Premises to be occupied by Tenant, the acceptance of the Premises by Tenant
shall be deferred until 5 days after Tenant's receipt of a written notice by
Landlord to Tenant of the completion of such construction. Tenant shall within 5
days after receipt of such notice make such inspection of the Premises as Tenant
deems appropriate and, except as otherwise notified by Tenant in writing to
Landlord within such period, Tenant shall be deemed to have accepted the
Premises in their then condition. If as a result of such inspection Tenant
discovers minor deviations or variations from the plans and specifications for
Tenant improvements of a nature commonly found on a "punch list" (as that term
is used in the construction industry), Landlord shall promptly correct such
deviations and variations upon receipt of such notice from Tenant. The existence
of such punch list items shall not postpone the commencement date of this Lease.

     14. SPECIAL IMPROVEMENTS. Tenant shall reimburse Landlord for Landlord's
cost of making all special improvements requested by Tenant, including but not
limited to counters, partitioning, electrical and telephone outlets and plumbing
connections other than as described on Exhibit C or other attachment hereto
being furnished by Landlord. Tenant shall pay Landlord for the cost of any such
special improvements made within 10 days of receipt of a written request
therefor by Landlord to Tenant.

     15. ACCESS. Tenant shall permit Landlord and its agents to enter into and
upon the Premises at all reasonable times for the purpose of inspecting the same
or for the purpose of cleaning, repairing, altering or improving the Premises or
the Building. Nothing contained in this Section 15 shall be deemed to impose any
obligation upon Landlord not expressly stated elsewhere in this Lease. When
reasonably necessary, Landlord may temporarily close entrances, doors,
corridors, elevators or other facilities without liability to Tenant by reason
of such closure and without such action by Landlord being construed as an
eviction of Tenant or may relieve Tenant from the duty of observing and
performing any of the provisions of this Lease. Landlord shall have the right to
enter the Premises for the purpose of showing the Premises to prospective
tenants within 180

                                        5

<PAGE>

days prior to the expiration or sooner termination of the lease term. Landlord
shall not be liable for the consequences of admitting by passkey, or refusing to
admit to the Premises, Tenant or any of Tenant's agents or employees or other
persons claiming the right of admittance.

16. DAMAGE OR DESTRUCTION. If the Premises shall be destroyed or rendered
untenantable, either wholly or in part, by fire or other unavoidable casualty,
Landlord may, at its option, either (a) terminate this Lease as provided herein
or (b) restore the Premises to their previous condition, and in the meantime the
monthly rent shall be abated in the same proportion as the untenantable portion
of the Premises bears to the whole thereof. Unless Landlord, within 30 days
after receipt from Tenant of notice that Tenant deems the Premises untenantable,
shall notify Tenant of its election not to restore the Premises and to terminate
this Lease, this Lease shall continue in full force and effect. If the damage is
due directly or indirectly to the fault or neglect of Tenant, or its officers,
contractors, licensees, agents, servants, employees, guests, invitees or
visitors, there shall be no abatement of rent.

     If the Building or the Premises shall be destroyed or damaged by fire or
other casualty insured against under Landlord's fire and extended coverage
insurance policy to the extent more than 50% of either is rendered untenantable,
or if the Building or the Premises shall be destroyed or materially damaged by
any other casualty other than those covered by such insurance policy,
notwithstanding that the Premises may be unaffected directly by such destruction
or damage, Landlord may, at its election terminate this Lease by notice in
writing to Tenant within 60 days after such destruction or damage. Such notice
shall be effective 30 days after receipt thereof by Tenant. Landlord shall not
be required to repair or restore fixtures, improvements, or other property of
Tenant.

17. WAIVER OF SUBROGATION. Whether the loss or damage is due to the negligence
of either Landlord or Tenant, their agents or employees, or any other cause,
Landlord and Tenant do each herewith and hereby release and relieve the other
and any other tenant, its agents or employees, from responsibility for, and
waive their entire claim of recovery for, (a) any loss or damage to the real or
personal property of either located anywhere in the Building including the
Building itself, arising out of or incident to the occurrence of any of the
perils which are covered by their respective fire insurance policies, with
extended coverage endorsements or (b) any loss resulting from business
interruption at the Premises or loss of rental income from the Building, arising
out of or incident to the occurrence of any of the perils which may be covered
by the business interruption insurance policy and by the loss of rental income
insurance policy held by Landlord or Tenant. Each party shall cause its
insurance carriers to consent to such waiver and to waive all rights of
subrogation against the other party.

18. INDEMNIFICATION AND INSURANCE.

          18.1 INDEMNIFICATION. Each of Landlord and tenant shall defend and
indemnify the other and save it harmless from and against any and all liability,
damages, costs, or expenses, including attorneys' fees, arising from any act,
omission or negligence of or its officers, contractors, licensees, agents,
servants, employees, guests, invitees or visitors in or about the Premises, or
arising from any breach or default under this Lease by such party or arising
from any accident, injury, or damage, howsoever and by whomever caused by any
person or property, occurring in or about the Premises provided that the
foregoing provision shall not be construed to make either the Tenant or the
Landlord responsible for loss, damage, liability or expense resulting from
injuries to third parties caused by the negligence of the other party, or its
officers, contractors, licensees, agents, servants, employees, guests, invitees
or visitors.

     Except as caused by the gross negligence or willful misconduct of Landlord,
Landlord shall not be liable for any loss or damage to person or property
sustained by Tenant, or other persons, which may be caused by the Building or
the Premises, or any appurtenance thereto, being out of repair, or the bursting
or leakage of any water, gas, sewer or steam pipe, or by theft, or by any act or
neglect of any tenant or occupant of the Building, or of any other person, or by
any other cause of whatsoever nature. Tenant agrees to use and occupy the
Premises and other facilities of the Building at its own risk and hereby
releases Landlord, its agents and employees from all claims for any damage or
injury to the fullest extent permitted by law, except to the extent that such
claims for damage or injury are caused by the gross negligence or willful
misconduct of Landlord.

          18.2 INSURANCE.

               (a) Tenant shall, throughout the term of this Lease and any
renewal hereof, at its own expense, keep and maintain in full force and effect:

                    (i) Commercial general liability insurance with coverage at
least as broad as the most commonly available ISO Commercial General Liability
policy CG 00 01, with limits of liability no less than Two Million Dollars
($2,000,000) per occurrence limit, Two Million Dollars ($2,000,000) general
aggregate

                                       6

<PAGE>

limit; including contractual; which limits shall be reasonably increased during
the term of this Lease at Landlord's request to reflect both increases in
liability exposure arising from inflation as well as arising from changing legal
liability standards, and which policy names Landlord and, at Landlord's request,
Landlord's mortgage lender(s) as additional insureds; and

                    (ii) Property insurance at least as broad as an ISO Special
Form Causes of Loss policy, CP 0030, covering all real and personal property of
Tenant, including without limitation any leasehold improvements installed by or
for Tenant and Tenant's personal property located on or in, or constituting a
part of the Building, in an amount equal to one hundred percent (100%) insurable
replacement value of all such property, with no coinsurance penalty, and naming
Landlord's lender's as loss payees through a lender's loss payable indorsement;
and

                    (iii) Business interruption insurance in an amount
sufficient to cover costs, expenses, rents due hereunder, damages and lost
income should the Premises not be fully usable for a period of up to 6 months.

               (b) All insurance polices required under this Section 18.2 shall
be with companies reasonably approved by Landlord and each policy shall provide
that it is not subject to cancellation or reduction in coverage except after
thirty (30) days following written notice to Landlord. Tenant shall deliver to
Landlord and, at Landlord's request, Landlord's mortgage lender (s), if any,
prior to the date of commencement of this Lease and from time to time
thereafter, certificates evidencing the existence and amounts of all such
policies, which certificate provides that the policies certified therein shall
not be cancelable or subject to reduction of coverage until 30 days following
written notice to Landlord.

               (c) If Tenant fails to acquire or maintain any insurance or
provide any certificate required by this Section 18.2, Landlord may, but shall
not be required to, obtain such insurance and the cost of the premiums therefor
shall become additional rent due hereunder.

     19. ASSIGNMENT AND SUBLETTING. Tenant shall not assign, transfer, mortgage
or encumber this Lease nor sublet the whole or any part of the Premises without
first obtaining Landlord's written consent, which consent shall require that
such subtenant or assignee consent to be bound by all of the terms and
conditions of this Lease, but which consent shall not otherwise be unreasonably
withheld. No such assignment or subletting shall relieve Tenant of any liability
under this Lease regardless of whether such liability arises by or through
Tenant. Assignment or subletting shall not operate as a waiver of the necessity
for a written consent to any subsequent assignment or subletting, and the terms
of such consent shall be binding upon any person holding by, under or through
Tenant. Landlord may, at its election, collect rent directly from such assignee
or subtenant.

     In the event Tenant should desire to assign this Lease or sublet the
Premises or any part hereof, Tenant shall give Landlord written notice at least
sixty (60) days in advance of the date on which Tenant desires to make such
assignment or sublease, which notice shall specify, (a) the name and business of
the proposed assignee or sublessee, (b) the amount and location of the space
affect, (c) the proposed effective date and duration of the subletting or
assignment, and (d) the proposed rental to be paid to Tenant by such sublessee
or assignee. Landlord shall then have a period of thirty (30) days following
receipt of such notice within which to notify Tenant in writing that Landlord
elects either (1) to terminate this Lease as to the space so affected as of the
date so specified by Tenant and reclaim that portion of the Premises, (2) to
permit Tenant to assign or sublet such space, in which event if the proposed
rental rate between Tenant and sublessee is greater than the rental rate of this
Lease, then such excess rental to be deemed additional rent owed by Tenant to
Landlord under this Lease, and the amount of such excess, including any
subsequent increases due to escalation or otherwise, to be paid by Tenant to
Landlord in the same manner the Tenant pays the rental hereunder and in addition
thereto, or (3) to withhold consent to Tenant's assignment or subleasing such
space and to continue this Lease in full force and effect as to the entire
Premises.

     If Tenant is a corporation, then any transfer of this Lease by merger,
consolidation or liquidation, or any change in the ownership of, or power to
vote, the majority or controlling interest of its outstanding voting stock,
shall not constitute an assignment or the purpose of this Section.

     If Tenant is a partnership, then any dissolution, liquidation, merger, or
consolidation of the partnership, or any change in ownership of a majority of
the partnership interests, whether directly or indirectly, or any change of
control of the partnership or of any general partner, shall not constitute an
assignment for purposes of this Section.

     Upon the exercise by Landlord of the option of termination of this Lease as
to the space requested to be subleased, Tenant shall surrender that portion of
the Premises to be reclaimed, and the Agreed Floor Area of

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<PAGE>

the Premises and rent pursuant to Sections 1 (b) and 1 (d) above shall be
reduced proportionately. All other terms and conditions of this Lease shall
otherwise remain in force and effect. If the portion of the Premises to be
sublet is inaccessible from any public hallway in the Building, Landlord may
reclaim a comparable area of similar size elsewhere in the Premises that is
accessible from such hallways and require Tenant to occupy such inaccessible
area, provided that Tenant shall not be required to occupy any area that is not
accessible from and contiguous to the remainder of the Premises. Landlord may
make any alterations, modifications or improvements to the Premises it deems
necessary for the reclaiming of any portion of the Premises.

     20. ADVERTISING. Tenant shall not inscribe any inscription, or post, place
or in any manner display any sign, notice, picture, placard or poster, or any
advertising matter whatsoever, anywhere in or about the Premises or the Building
at places visible (either directly or indirectly as an outline or shadow on a
glass pane) from anywhere outside the Premises without first obtaining
Landlord's written consent thereto. Any such consent by Landlord shall be upon
the understanding and condition that Tenant will remove the same at the
expiration or sooner termination of this Lease and Tenant shall repair any
damage to the Premises or the Building caused thereby.

     Tenant, at their sole cost and expense, shall have the right to building
directory signage in common with other tenants at the project. Said sign is
subject to Landlord's approval and all governmental codes and regulations.

     21. LIENS AND INSOLVENCY. Tenant shall keep the Premises and the Building
free from any liens arising out of any liens arising out of any work performed,
materials ordered or obligations incurred by Tenant. If Tenant becomes
insolvent, voluntarily or involuntarily bankrupt, or if a receiver, assignee or
other liquidating officer is appointed for the business of Tenant, then Landlord
may terminate Tenant's right of possession under this Lease at Landlord's option
and in no event shall the Lease or any rights or privileges hereunder be an
asset of Tenant under any bankruptcy, insolvency or reorganization proceedings.

     22. DEFAULTS. The occurrence of any one or more of the following events
shall constitute a material default and breach of this Lease by Tenant: (i) the
abandonment of the Premises by Tenant or the vacating of the Premises for more
than thirty (30) consecutive days; (ii) the failure by Tenant to make any
payment of Rent or any other payment required to be made by Tenant hereunder,
and such failure continues for more than five (5) days after written notice from
Landlord; (iii) the failure by Tenant to observe or perform any of the other
covenants, conditions or provisions of the Lease, where such failure shall
continue for a period of twenty (20) days after written notice from Landlord;
provided, however, if more than 20 days are reasonably required for its cure
then Tenant shall not be deemed to be in default if Tenant commences such cure
within said 20-day period and thereafter diligently prosecutes such cure to
completion; (iv) the making by Tenant of any general assignment or general
arrangement for the benefit of creditors; (v) the filing by or against Tenant of
a petition to have Tenant adjudged bankrupt or a petition for reorganization or
arrangement under any law relating to bankruptcy (unless, in the case of a
petition filed against Tenant, the same is dismissed within sixty (60) days);
(vi) the appointment of a trustee or receiver to take possession of
substantially all of Tenant's assets located at the Premises or of Tenant's
interest in the Lease, where possession is not restored to Tenant within thirty
(30) days; (vii) the attachment, execution or other judicial seizure of
substantially all of Tenant's assets located at the Premises or of Tenant's
interest in this Lease, where such seizure is not discharged within thirty (30)
days; or (viii) the assignment or other transfer of all or any interest of
Tenant in this Lease, or the subletting of all or any portion of the Premises,
in either case which is in violation of this Lease. All notice and cure periods
set forth above are in lieu of and not in addition to any notice required
pursuant to applicable unlawful detainer/eviction statutes

     All rights and remedies of Landlord herein enumerated shall be cumulative,
and none shall exclude any other right or remedy allowed by law or in equity,
and all of the following may be exercised with or without legal process as then
may be provided or permitted by the laws of the state in which the Premises are
situated:

          (a) Upon any material default under this Lease, Landlord may reenter
the Premises and remove or put out Tenant or any other persons found therein. No
such reentry shall be construed as an election on Landlord's part to terminate
this Lease unless a written notice of such intention is given to Tenant.

          (b) Upon any material default under this Lease, Landlord may elect to
re-let the Premises or any part thereof upon such terms and conditions,
including rent, term and remodeling or renovation, as Landlord in its sole
discretion may deem advisable. To the fullest extent permitted by law, the
proceeds of any reletting shall be applied: first, to pay Landlord all costs and
expenses of such reletting (including without limitation, costs and expenses
incurred in retaking or repossessing the Premises, removing persons or property
therefrom, securing new tenants, and, if Landlord maintains and operates the

                                        8

<PAGE>

Premises, the costs thereof); second, to pay any indebtedness of Tenant to
Landlord other than rent; third, to the rent due and unpaid hereunder; and
fourth, the residue, if any, shall be held by Landlord and applied in payment of
other or future obligations of Tenant to Landlord as the same may become due and
payable, and Tenant shall not be entitled to receive any portion of such
revenue.

          (c) Upon any material default under this Lease, Landlord may also
elect to terminate the Lease and all rights of Tenant by giving notice to Tenant
of such election. If Landlord elects to terminate the Lease, Landlord shall have
the right to reenter the Premises and remove all persons, and to take possession
of and remove all equipment and fixtures of Tenant in the Premises. Tenant
hereby waives all damages that may be caused by Landlord's reentering and taking
possession of the Premises or removing or storing the property thereof, and
Tenant shall save Landlord harmless therefrom, and no such reentry shall be
considered a forcible entry. If Landlord so elects to terminate the Lease,
Landlord may also recover from Tenant:

                    (I) The worth at the time of the award of the unpaid rent
which had been earned at the time of termination;

                    (II) The worth at the time of the award of the amount by
which the unpaid rent which would have been earned after termination until the
time of the award exceeds the amount of rental loss that could have been
reasonably avoided;

                    (III) The worth at the time of the award of the amount by
which the unpaid rent for the balance of the term after the time of the award
exceeds the amount of rental loss that could be reasonably avoided;

                    (IV) Any other amount necessary to compensate the Landlord
for all the detriment proximately caused by the Tenant's failure to perform its
obligations under the Lease or which in the ordinary course of things would be
likely to result therefrom; and

                    (V) At Landlord's election, such other amounts in addition
to or in lieu of the foregoing that may be permitted from time to time by
applicable law.

The "worth at the time of the award" of the amounts referred to in paragraphs
(I) and (II) above is computed by allowing interest at twelve percent (12%). The
"worth at the time of the award" of the amount referred to in paragraph (III)
above is computed by discounting such amount at the discount rate of the Federal
Reserve Bank of San Francisco at the time of the award plus one percent (1%).

          (d) Nothing in this Section 22 shall be deemed to affect Landlord's
right to indemnification for liability or liabilities arising prior to
termination of this Lease for personal injury or property damage under the
indemnification provisions or other provisions of this Lease.

          (e) Tenant acknowledges that certain benefits or concessions provided
by Landlord are conditioned upon Tenant's timely, fully and faithful performance
of each and every obligation, covenant, representation and warranty of this
Lease throughout the entire term of this Lease, even though such benefits or
concessions may be realized by Tenant over less than the entire term of this
Lease. Accordingly, notwithstanding anything to the contrary contained herein,
in the event Landlord brings an action against Tenant for default under this
Lease, Landlord shall become immediately entitled to receive from Tenant as
additional rent the amount of all such benefits and concessions allocable to the
balance of the Lease term on a pro rata basis, i.e., an amount equal to the
product of (x) the sum of (a) any amounts theretofore or thereafter paid by
Landlord to Tenant or to any third party, or any amounts credited to Tenant or
to any third party, for of on account of (i) any moving, tenant improvement,
decorating or other allowance or credit granted to Tenant, (ii) any real estate
commission paid on account of this Lease, and (iii) any expenses or costs
related to assumption by Landlord of any other lease, plus (b) an amount equal
to the difference between the rent as specified in Section l(d) above and rent
for any period for which this Lease provides any lesser amount including zero or
nominal rent, including for any period of early occupancy of the Premises prior
to the commencement of the term of this Lease, plus (c) the amount spent by
Landlord for any tenant improvements to the Premises; multiplied by (y) a
fraction, the numerator of which is the number of days of the term of this Lease
remaining between the date of default and the expiration of the term of this
Lease, and the denominator of which is the total number of days for the term of
this Lease. By way of example, if Tenant receives a moving allowance of $1,000,
the Lease term is 3 years (1,095 days) and a default occurs at the end of the
first year such that there were 2 years (730 days) remaining, then Tenant shall
pay as additional rent the sum for $666.67, which is computed as follows:
($1,000 x 730)/1,095 = $666.67.

     23. PRIORITY. Upon demand by Landlord or the holder of any mortgage or deed
of trust now

                                        9

<PAGE>

existing or that may hereafter be placed upon the Premises or the Building,
Tenant will execute an agreement of subordination, non-disturbance and
attornment in form acceptable to Landlord and to such mortgage holder. In the
absence of such agreement, Tenant agrees that this Lease shall be subordinate to
any mortgage or deed of trust now existing or hereafter placed upon the Premises
or the Building and to any and all advances to be made thereunder, and to
interest thereon, and all renewals, replacements or extensions thereof.

     24. REMOVAL OF PROPERTY. Upon expiration or sooner termination of this
Lease, Tenant may remove its trade fixtures, office supplies and movable office
furniture and equipment not attached to the Building provided (a) such removal
is made prior to the termination or expiration of this Lease, (b) Tenant is not
in material default under any provision of this Lease at the time of such
removal, and (c) Tenant immediately repairs all damages caused by or resulting
from such removal. All other property in the Premises and any alterations
thereto (including, without limitation, wall-to-wall carpeting, paneling, wall
covering, or lighting fixtures and apparatus) and any other article affixes to
the floor, wall to ceiling of the Premises shall become the property of Landlord
and shall remain upon and be surrendered with the Premises, Tenant hereby
waiving all rights to any payment or compensation therefore. If, however,
Landlord so requests in writing, Tenant will, upon termination of this Lease,
remove such alterations, additions, fixtures, equipment and property placed or
installed by it in the Premises as requested by Landlord, and will immediately
repair any damage caused by or resulting from such removal to the condition of
the Premises prevailing upon commencement of this Lease, reasonable wear and
tear expected.

     If Tenant shall fail to remove any of its property of any nature whatsoever
from the Premises or the Building at the termination of this Lease or when
Landlord has the right of reentry, Landlord may at its option, remove and store
said property without liability for loss thereof or damage thereto, such storage
to be for the account and at the expense of Tenant. If Tenant shall not pay the
cost or storing any such property after it has been stored for a period of 30
days or more, Landlord may, at its option, sell, or permit to be sold, any of
all such property at public or private sale (and Landlord may become a purchaser
at such sale), in such manner and at such times and place as Landlord in its
sole discretion may deem proper without notice to Tenant, and shall apply the
proceeds of such sale: first, to the cost and expense or such sale, including
reasonable attorneys' fees actually incurred; second, to the payment of costs or
charges for storing any such property; third, to the payment or any other sums
of money which may then be or thereafter become due landlord from Tenant under
any of the terms hereof; and fourth, the balance, if any, to Tenant.

     25. NONWAIVER. Waiver by Landlord of any breach of any term, covenant, or
condition herein contained shall not be deeded to be a waiver of such term,
covenant or condition, or of any subsequent breach of the same or any other
term, covenant or condition herein contained. The subsequent acceptance of rent
hereunder by Landlord shall not be deemed to be a waiver of any preceding breach
by Tenant of any term, covenant, or condition of the Lease, other than the
failure of Tenant to pay the particular rental so accepted, regardless of
Landlord's knowledge of such preceding breach at the time of acceptance of such
rent.

     26. SURRENDER OF POSSESSION. Upon expiration or sooner termination of the
term of this Lease, whether by lapse of time or otherwise, Tenant shall promptly
and peacefully surrender the Premises to Landlord.

     27. HOLDOVER. IF Tenant shall, without the written consent of Landlord,
hold over after the expiration or termination of the term of this Lease, Tenant
shall be deemed to be occupying the Premises on a month-to-month tenancy, which
tenancy may be terminated as provided by the laws for the State of Washington.
During such tenancy, Tenant agrees to pay to Landlord one and one-half the rate
of rental as set forth herein, unless a different rate shall be agreed upon, and
to be bound by all of the terms, covenants and conditions herein specified, so
far as applicable.

     28. CONDEMNATION. If all of the Premises, or such portions of the Building
as may be required for the reasonable use of the Premises, are taken be eminent
domain, this lease shall automatically terminate as of the date Tenant is
required to vacate the Premises and all rentals shall be paid to that date. In
case of a taking of a part of the Premises, or a portion of the Building not
required for the reasonable use of the Premises, then this Lease shall continue
in full force and effect and the rental shall be equitably reduced based on the
proportion by which the floor area of the Premises is reduced, such rent
reduction to be effective as of the date of possession of such reduced, such
rent reduction to be effective as of the date possession of such portion is
delivered to the condemning authority. Landlord reserves all rights to damage to
the Premises for any taking by eminent domain, and Tenant hereby assigns to
Landlord any right Tenant may have to such damages or award, and Tenant shall
make no claim against Landlord for damages for termination of the leasehold
interest or interference with Tenant's business. Tenant shall have the right,
however, to claim and recover from the condemning authority compensation for any
loss to which Tenant may be put for Tenant's moving expenses, provided that such
damages may be claimed only if they are awarded separately in the eminent domain
proceedings and not as part of the damages recoverable by Landlord.

                                       10

<PAGE>

     29. NOTICES. All notices under this Lease shall be in writing and delivered
in person or sent by registered or certified mail to Landlord at the same place
rent payments are made, to Tenant at the Premises, and to the holder of any
first mortgage or deed of trust at such place as such holder shall specify to
Tenant in writing; or such other address as may from time to time be designated
by such party in writing. Notices mailed as aforesaid shall be deemed given on
the date of such mailing.

     30. COSTS AND ATTORNEYS' FEES. In the event of any action or proceeding
arising out of or in connection with this Lease, the prevailing party shall be
entitled to all costs, expenses and reasonable attorneys' fees, with or without
suit and on appeal.

     31. LANDLORD'S LIABILITY. Anything in this Lease to the contrary
notwithstanding, covenants, undertakings and agreements herein made on the part
of Landlord are made and intended not as personal covenants, undertakings and
agreements or for the purpose of binding Landlord personally or the assets or
Landlord except Landlord's interest in the Premises and the Building, but are
made and intended for the purpose of binding only Landlord's interest in the
Premises and the Building. No personal liability or personal responsibility is
assumed by, nor shall at any time be asserted or enforceable against Landlord or
its partners and their respective heirs, legal representatives, successors and
assigns on account of this Lease or on account of any covenant, undertaking or
agreement of Landlord contained in this Lease.

     32. ESTOPPEL CERTIFICATE. Tenant shall, from time to time upon written
request of Landlord, execute, acknowledge and deliver to Landlord or its
designees a written statement stating the date this Lease was executed and the
date it expires, the date Tenant entered into occupancy of the Premises, the
amount of minimum monthly rental and the date to which such rental has been
paid, and certifying that this Lease is in full force and effect and has not
been assigned, modified, supplemented or amended in any way (or specifying the
date of agreement so effecting this Lease); that this Lease represents the
entire agreement between the parties as to this leasing; that all conditions
under this Lease to be performed by Landlord have been satisfied, including, but
without limitation, all co-tenancy requirements; that all required contributions
by Landlord to Tenant on account of Tenant's improvements have been received;
that on this date there are no existing defenses or offsets which Tenant has
against the enforcement of this Lease by Landlord; that no rental has been paid
in advance; and that no security has been deposited with Landlord (or, if so,
the amount thereof). It is intended that any such statement delivered pursuant
to this Section may be relied upon by a prospective purchaser of Landlord's
interest or a mortgagee of Landlord's interest or assignee of any mortgage upon
Landlord's interest in the Building. If Tenant shall fail to respond within 10
days of receipt by Tenant of a written request by Landlord as herein provided,
Tenant shall be deemed to have given such certificate as above provided without
modification and shall be deemed to have admitted the accuracy of any
information supplied by Landlord to a prospective purchaser or mortgagee and
that this Lease is in full force and effect, that there are no uncured defaults
in Landlord's performance, that the security deposit is as stated in this Lease,
and that not more than one month's rental has been paid in advance.

     33. TRANSFER OF LANDLORD'S INTEREST. This Lease shall be assignable by
Landlord without the consent of Tenant in the event of any transfer or transfers
of Landlord's interest in the Premises or the Building, other than a transfer
for security purposes only, and the transfer or shall be automatically relieved
of any and all obligations and liabilities on the part of Landlord accruing from
and after the date of such transfer and Tenant agrees to attorn to the
transferee.

     34. RIGHT TO PERFORM. If Tenant shall fail to pay sum of money, other than
rent, required to be paid by it hereunder or shall fail to perform any other act
on its part to be performed hereunder, and such failure shall continue for ten
(10) days after notice thereof by Landlord, or such shorter time if reasonable
under the circumstances, Landlord may, but shall not be obligated so to do, and
without waiving or releasing Tenant from any obligations of Tenant, make any
such payment or perform any such other act on Tenant's part to be made or
performed as provided in this Lease. Landlord shall have (in addition to any
other right or remedy of Landlord) the same rights and remedies in the event of
the nonpayment of sums due under this Section as in the case of default by
Tenant in the payment of rent.

     35. RELOCATION OF PREMISES. During the term of the Lease Landlord may
relocate the Tenant's Premise within the Building. Said relocation shall be at
the total cost and expense of Landlord. In the event Landlord so elects to
relocate Tenant, Landlord shall notify Tenant and propose the relocation space
to Tenant shall have fifteen (15) days from the receipt of said notice to elect
to accept said relocation. In the event that the relocation proposal is accepted
by Tenant, Landlord and Tenant shall revise the Tenant's Lease to reflect the
new space. Upon such relocation, such new space shall be deemed the Premises
hereunder for all purposes and the Lease shall be deemed amended to that effect
date without further formality. Rental rates for the new space shall be the same
as those agreed to in the original Lease Agreement, subject to adjustment for
additional space, or less space, as agreed to by the parties. All other terms
and conditions of the original Lease shall

                                       11

<PAGE>

remain in full force and effect.

     36. PARKING. Parking shall at all times be governed by reasonable rules and
regulations which shall be published from time to time by Landlord. Parking may
be on a reserved stall and/or undesignated stall -- "window sticker" basis, and
may be self-service and/or attendant service, as determined from time to time by
Landlord.

     37. EXECUTION OF LEASE BY LANDLORD. The submission of this document for
examination and negotiation does not constitute an offer to lease, or a
reservation of, or option for the Premises, and this document shall become
effective and binding only upon execution and delivery by Landlord and the
Tenant. No act or omission of any employee or agent of Landlord or of Landlord's
broker shall alter, change or modify any of the provisions hereof.

     38. GENERAL PROVISIONS.

          (a) The titles of sections of this Lease are not a part of this Lease
and shall have no effect upon the construction of interpretation of any part
hereof. This Lease shall be construed and governed by the laws of the State of
Washington.

          (b) All of the covenants, agreements, terms and conditions contained
in this Lease shall apply to and be binding upon Landlord and Tenant and their
respective heirs, executors, administrators, successors and assigns.

          (c) Tenant represents and warrants to Landlord that it has not engaged
any broker, finder or other person who would be entitled to any Lease except for
that broker identified in Section 1(h) hereof, and shall indemnify and hold
harmless Landlord against any loss, cost, liability or expense incurred by
Landlord as a result of any claim asserted by any other broker, finder or other
person on the basis of any arrangements or agreements made or alleged to have
been made by or on behalf of Tenant.

          (d) This Lease contains all covenants and agreements between Landlord
and Tenant relating in any manner to the rental, use and occupancy of the
Premises and Tenant's use of the Building and other matters set forth in this
Lease. No prior agreements or understanding pertaining to the same shall be
valid or of any force or effect and the covenants and agreements of this Lease
shall not be altered, modified, or added to except in writing signed by Landlord
and Tenant, any provision of this Lease shall prove to be invalid, void or
illegal shall in no way affect, impair or invalidate any other provision hereof
and the remaining provisions hereof shall nevertheless remain in full force and
effect.

          (e) To the extent required by law, the Building shall be an open
occupancy building.

          (f) Any rent, additional rent or other sums payable by Tenant to
Landlord which shall not be paid upon the due date thereof shall bear interest
at a rate equal to five percent (5%) per annum above the prime lending rate as
publicly announced from time to time by Bank of America, calculated from the
date of delinquency to the date of payment. Any late payment of rental shall
also be subject to a collection fee equal to the greater of $100.00 or five
percent (5%) of the amount due.

          (g) Landlord reserves the right to name and re-name the Building from
time to time, and to install signs accordingly, without compensation or prior
notice to Tenant.

          (h) The invalidity of all or any part of any section of this Lease
shall not render invalid the remainder of this Lease or the remainder of such
section. If any provision of this Lease is so broad as to be unenforceable, such
provision shall be interpreted to be only so broad as is enforceable.

          (i) The following exhibits or riders are made a part of this Lease:

               Exhibit A - LEGAL DESCRIPTION OF LAND
               Exhibit B - FLOOR PLAN OF PREMISES
               Exhibit C - TENANT IMPROVEMENTS
               Exhibit D - RULE AND REGULATIONS

                                       12

<PAGE>

     IN WITNESS WHEREOF this Lease has been executed the day and year first
above set forth.

TENANT: Synchronoss Technologies, Inc.

By /s/ LAWRENCE R. IRVING
   ----------------------------------
   Its LAWRENCE R. IRVING

LANDLORD: APPLE TREE LLC

By /s/ Tony Chee
   ----------------------------------
   Its Managing Partner

                                       13

<PAGE>

CORPORATE ACKNOWLEDGEMENT:
State of NEW JERSEY )
                    ) ss.
County of SOMERSET  )

     On this 3RD day of JANUARY, 2006 before me personally appeared LAWRENCE R.
IRVING to me known to be the CFO of the corporation that executed the within and
foregoing instrument, and acknowledged the same instrument to be the free and
voluntary act and deed of said corporation, for the uses and purposes therein
mentioned, and on oath stated that they were authorized to execute said
instrument.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed by official
seal the day and year first written above.

                                        Signature: /s/ Bharati B Parekh.
                                                   -----------------------------
           BHARATI B PAREKH             Print Name: BHARATI B PAREKH.
            Notary Public
         State of New Jersey            Notary Public in and for the
        My Commission expires           State of NEW JERSEY
           April 9th, 2007.             Residing in NEW JERSEY
                                        My appointment expires: APRIL 9th, 2007.

(Seal)

LIMITED LIABILITY COMPANY:
State of Washington )
County of Illegible )

     On this 4th day of Jan, 2006 before me personally appeared Tony Chee to me
known to be the member of the limited liability company that executed the within
and foregoing instrument, and acknowledged the same instrument to be the free
and voluntary act and deed of said limited liability company, for the uses and
purposes therein mentioned, and on oath stated that they were authorized to
execute said instrument.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed by official
seal the day and year first written above.

                                        Signature: /s/ CATHIE M WEBSTER
                                                   -----------------------------
                                        Print Name: CATHIE M WEBSTER

                                        Notary Public in and for the
                                        State of Washington
                                        Residing in Illegible
                                        My appointment expires 6-5-06

(Seal)

                                       14

<PAGE>

                                   EXHIBIT A

                           LEGAL DESCRIPTION OF LAND

THAT PORTION OF THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 2,
TOWNSHIP 25 NORTH, RANGE 5 EAST, W.M., IN KING COUNTY, WASHINGTON, DESCRIBED AS
FOLLOWS:

THE WEST 92 FEET OF THE NORTH 104 OF THE FOLLOWING DESCRIBED TRACT:

BEGINNING AT THE COMMON CORNER OF SECTION 1,2,11, AND 12, TOWNSHIP 25 NORTH,
RANGE 5 EAST, W.M., IN KING COUNTY, WASHINGTON; THENCE NORTH ALONG LINE BETWEEN
SECTION 1 AND 2,238.7 FEET; THENCE WEST AT RIGHT ANGLES 30 FEET TO POINT OF
BEGINNING: THENCE WEST 208.7 FEET; THENCE NORTH PARALLEL TO THE EAST LINE OF
SECTION 1.417.4 FEET TO THE POINT OF BEGINNING; EXCEPT THAT PORTION THEREOF
LYING NORTHERLY OF A LINE THAT IS PARALLEL WITH AND 30,000 FEET SOUTHERLY FROM
THE FOLLOWING DESCRIBED LINE:

BEGINNING AT THE INTERSECTION OF THE CENTER LINE OF 164TH AVENUE N.E. (BEING THE
EAST LINE OF SAID SECTION 2) WITH THE CENTER LINE OF N.E. 83RD STREET (FORMERLY
TRIMBLE STREET AS SHOWN ON PERRIGO'S PLAT OF REDMOND, ACCORDING TO PLAT RECORDED
IN VOLUME 18 OF PLATS, PAGE 40, IN KING COUNTY, WASHINGTON), SAID INTERSECTION
BEING DISTANT NORTH 1 DEGREES 8'48" EAST 659.97 FEET ALONG SAID EAST LINE OF
SECTION 2 FROM THE SOUTHEST CORNER THEREOF; THENCE NORTH 58'59' WEST 395.17 FEET
TO THE TERMINUS OF SAID LINE.

THAT PORTION OF THE SOUTHEAST QUARTER OF SECTION 2, TOWNSHIP 25 NORTH, RANGE 5
EAST, W.M., IN KING COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS:

NORTH 104.00 FEET OF THE FOLLOWING DESCRIBED TRACT:

BEGINNING AT THE COMMON CORNER OF SECTIONS 1, 2, 11, AND 12 IN TOWNSHIP 25
NORHT, RANGE 5 EAST W.M., IN KING COUNTY, WASHINGTON; THENCE NORTH ALONG LINE
BETWEEN SECTIONS 1 AND 2, 238.7 FEET; THENCE WEST AT RIGHT ANGLES 30 FEET TO
POINT OF BEGINNING; THENCE WEST 208.7 FEET; THENCE NORTH PARALLEL TO THE EAST
LINE OF SECTION 1, 417.4 FEET; THENCE EAST 208.07 FEET TO WEST LINE OF COUNTRY
ROAD; THENCE SOUTH 417.4 FEET THE POINT OF BEGINNING; EXCEPT THE WEST 92 FEET
THEREOF; ALSO

EXCEPT THAT PORTION THEREOF LYING NORTHERLY OF THE FOLLOWING DESCRIBED LINE:

BEGINNING AT THE INTERSECTION OF THE CENTER OF 164TH AVENUE N.E. (BEING THE EAST
LINE OF SAID SECTION 2) WITH THE ENTER LINE OF N.E. 83RD STREET (FORMERLY
TRIMBLE STREET AS SHOWN ON PERRIGO'S PLAT OF REDMOND. ACCORDING TO PLAT RECORDED
IN VOLUME 18 OF PLATS, PAGE 40, IN KING COUNTY, WASHINGTON), SAID INTERSECTION
BEING DISTANT NORTH 1 DEGREES 8'48" EAST 659.97 FEET ALONG SAID EAST LINE OF
SECTION 2 FROM THE SOUTHEST CORNER THEREOF; THENCE NORTH 88 DEGREES 58'58' WEST
146.69 FEET TO THE NORTHERLY PROLONGATION OF THE EAST LINE OF SAID WEST 92 FEET;
THENCE SOUTH 1 DEGREES 8'48" WEST 30.00 FEET ALONG SAID PROLONGATION AND EAST
LINE TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 89 DEGREES 28'25" EAST 116.70
FEET FROM THE COURSE HEREIN ABOVE DESCRIBED AS HAVING A BEARING OF NORTH 88
DEGREES 58'58' WEST AND THE TERMINUS OF SAID LINE.

THE NORTH 74.25 FEET OF A TRACT OF LAND DESCRIBED AS FOLLOWS:

BEGINNING AT THE COMMON CORNER OF SECTIONS 1,2, 11, AND 12 IN TOWNSHIP 25 NORHT,
RANGE 5 EAST W.M.

THENCE NORTH OF THE SECTION LINE BETWEEN SECTIONS 1 AND 2, 238.7 FEET:

THENCE WEST AT RIGHT ANGLES 30 FEET TO A POINT:

THENCE NORTH 15 FEET TO THE POINT OF BEGINNING;

THENCE WEST 208.7 FEET;

THENCE NORTH AT RIGHT ANGLES 298.05 FEET;

THENCE EAST 208.07 FEET;

THENCE SOUTH 298.05 FEET TO THE POINT OF BEGINNING;

                                       1

<PAGE>

SITUATED IN THE CITY OF REDMOND, COUNTY OF KING, STATE OF WASHINGTON.

                                       2

<PAGE>

                                    EXHIBIT B

                             FLOOR PLAN OF PREMISES

                                  (FLOOR PLAN)

                                       1

<PAGE>

                                    EXHIBIT C

                               Tenant Improvements

Tenant accepts the premises on an "As Is" basis.

                                       1

<PAGE>

                                   EXHIBIT "D"

                               REDMOND TOWN SQUARE

                              RULES AND REGULATIONS

1.   Lessee shall not erect or install or otherwise utilize signs, lights,
     symbols, canopies, awnings, window coverings or other advertising or
     decorative matter on the windows, walls, and exterior doors, or areas
     otherwise visible from the exterior of the leased premises without first
     submitting its plans to Lessor and obtaining Lessor's written approval
     thereof.

2.   Lettering upon the directory board and the doors as required by Lessee
     shall be made by the sign company designated by Lessor.

3.   No additional locks shall be placed upon any doors of the leased premises,
     and Lessee agrees not to have any duplicate keys made without the consent
     of Lessor. If more than two keys for any lock are desired, such additional
     keys shall be paid for by Lessee. Each Lessee, upon the termination of the
     tenancy, shall deliver to the Lessor the keys of offices, and rooms which
     shall have been furnished the Lessee or which the Lessee shall have had
     made, and in the event of loss of any keys so furnished, shall pay the
     Lessor therefor.

4.   No furniture, freight, supplies not carried by hand, or equipment of any
     kind shall be brought into or removed from Building without the consent of
     Lessor. Such furniture, freight, equipment, safes and other heavy property
     shall be moved in or out of Building only at the times and in the manner
     permitted by Lessor. Lessor will not be responsible for loss or damage to
     any of the items above referred to, and all damage done to the leased
     premises or the Building by moving or maintaining any of such items shall
     be repaired at the expense of Lessee. Any merchandise not capable of being
     carried by hand shall utilize hand trucks equipped with rubber tires and
     rubber side guards.

5.   Lessor shall have the right to limit the weight, size and to designate the
     locations of all safes, filerooms, libraries and other heavy property
     within the building. Maximum uniform floor loading allowed is 65 pounds per
     square foot. Lessee warrants that under no circumstances shall they load
     the floor in excess of this limit. If excess floor loading is required, all
     costs (including engineering) to prepare the floor surface and structure to
     withstand excess floor loads shall be borne by the Lessee. In no event
     shall excess floor loads be accomplished without express written permission
     by Lessor.

6.   The entrances, corridors, stairways and elevators shall not be obstructed
     by Lessee, or used for any other purpose than ingress or egress to and from
     the leased premises.

7.   Lessee will not use or permit to be used in the leased premises anything
     that will increase the rate of insurance on the office Building or any part
     thereof; nor overload any floor or part thereof; nor anything that may be
     dangerous to life or limb; nor in any manner deface or injure the Office
     Building or any part thereof; nor do anything or permit anything to be done
     upon the leased premises in any way tending to create a nuisance or to
     disturb any other tenant or occupant of any part of the Office Building;
     and Lessee, at Lessee's expense, will comply with all health, fire and
     police regulations respecting the leased premises.

8.   Lessee shall not mark, drive nails, screw or drill into woodwork or
     plaster, or paint or in any way deface the Office Building or any part
     thereof, of the lease premises or any part thereof, of fixtures therein.
     The expense of remedying any breakage, damage or stoppage resulting from a
     violation of this rule shall be borne by Lessee.

9.   Canvassing, soliciting and peddling in Building are prohibited and each
     Lessee shall cooperate to prevent such activity.

10.  The requirements of tenants will be attended to only upon application at
     the main office of the Lessor. Lessor's employees shall not perform any
     work or do anything outside of their regular duties, except on issuance of
     special instructions from Lessor. If Lessor's employees are made available
     for the assistance of any tenants, Lessor shall be paid for their services
     by such tenants at reasonable hourly rates.

     Lessor reserves the right to close and keep locked all entrance and exit
     doors of the Building on Sundays

                                        1

<PAGE>

     and legal holidays and between the hours of 6:00 p.m. of any day and 7:00
     am of the following day and during such further hours as Lessor may deem
     advisable for the adequate protection of the Office Building and the
     property of the tenants.

11.  Lessor shall, operate the air conditioning system from 7:00 am until 6:00
     p.m. on business days, and on Saturdays, when the hours shall be from 8:00
     am until 1:00 p.m.

12.  Lessee shall exercise care and caution to ensure that all water faucets or
     water apparatus, electricity and gas are carefully and entirely shut off
     before Lessee or its employees leave Building, so as to prevent waste or
     damage. Lessee shall be responsible for any damage to the leased premises
     or the Office Building and for all damage or injuries sustained by other
     tenants or occupants of the Office Building arising from Lessee's failure
     to observe this provision.

13.  Lessor reserves the right to exclude or expel from the Office Building any
     person who, in the judgment of Lessor is under the influence of liquor or
     drugs, or who shall in any manner do any act in violation of any of the
     rules and regulations of the Office Building.

14.  Lessor shall supply A.C. electrical current to the leased premises capable
     of providing electrical capacity equivalent to 5 watts per square foot. The
     cost of providing electrical capacity above such specified amount and the
     use of electrical power in excess of 5 watts per square foot for 10 hours
     per day shall be paid by Lessee.

15.  Lessee, employees and invitees shall obey all traffic and parking
     regulations as posted throughout the Office Complex by Lessor.

16.  Toilet rooms, urinals, wash bowls and other apparatus shall not be used for
     any purpose other than that for which they were constructed and no foreign
     substance of any kind whatsoever shall be thrown therein and the expense of
     any breakage, stoppage or damage resulting from the violation of this rule
     shall be borne by the Lessee who, or whose employees or invitees shall have
     caused it.

17.  Lessee shall not employ any person or persons other than the janitor of
     Lessor for the purpose of cleaning the leased premises unless otherwise
     agreed to by Lessor. Except with the written consent of Lessor, no person
     or persons other than those approved by Lessor shall be permitted to enter
     the Building for the purpose of cleaning the same. Lessee shall not cause
     any unnecessary labor by reason of Lessee's carelessness or indifference in
     the preservation of good order and cleanliness. Lessor shall in no way be
     responsible to any Lessee for any loss of property on the Leased Premises,
     however occurring, or for any damage done to the effect of any Lessee by
     the janitor or any other employee or any other person. Janitor service
     shall include ordinary dusting and cleaning by the janitor assigned to such
     work and shall not include cleaning of carpets or rugs, except normal
     vacuuming, or moving of furniture or other special services.

18.  Lessee shall not use, keep or permit to be used or kept any foul or noxious
     gas, or substance in the leased premises, or permit or suffer the leased
     premises to be occupied or used in a manner offensive or objectionable to
     the Lessor or other occupants of the Office Building by reason of noise,
     odors, and/or vibrations, or interfere in any way with other Lessees or
     those having business therein, nor shall any animals or birds be brought in
     or kept in or about the leased premises or the Office Building.

19.  Lessee shall not use or keep in the leased premises or the Building any
     kerosene, gasoline or inflammable or combustible fluid or material, or use
     any method of heating or air conditioning other than that supplied by
     Lessor.

20.  Lessor will direct electricians as to where and how telephone and
     electrical wires are to be introduced. No boring or cutting wires will be
     allowed without the consent of Lessor. The locations of telephones, call
     boxes and other office equipment affixed to the leased premises shall be
     subject to the approval of Lessor.

21.  No Lessee shall lay linoleum, tile, carpet or other similar floor covering
     so that the same shall be affixed to the floor of the leased premises in
     any manner except as approved by the Lessor. The expense of repairing any
     damage resulting from a violation of this rule or removal of any floor
     covering shall be borne by the Lessee by whom, or by whose contractors,
     employees or invitees, the damage shall have been caused.

22.  No furniture, packages, supplies, equipment or merchandise will be received
     in the building or carried up or down in the elevator except between such
     hours and in such elevators as shall be designated by the Lessor

                                       2

<PAGE>

23.  On Saturdays, Sundays and legal holidays, and on all other days between the
     hours of 6:00 p.m. and 7:00 am the following day, access to the Building or
     to the halls, corridors, elevators or stairways in the building, or the
     leased premises may be refused unless the person seeking access is known to
     the person or employee of the Office Building of any person. In case of
     invasion, mob, riot, public excitement or other commotion, the Lessor
     reserves the right to prevent access to the Building during the continuance
     of the same by closing the doors or otherwise, for the safety of the
     Lessees and protection of the property in the Office Complex and the
     Building.

24.  No vending machine or machines of any description shall be installed,
     maintained or operated upon the leased premises without the prior written
     consent of the Lessor.

25.  The word "Office Complex" means the entire complex of buildings, land
     driveway, parking and walkway, and landscaped areas which make up the
     entire Kingsgate Place. The word "Building" as used herein means the
     Building of which the leased premises are a part.

26.  Chair floor pads must be used under all chairs with rollers or casters.

27.  Lessor shall provide disposal service, janitorial cleaning, and restroom
     supplies. The cost of providing such services above what is considered, at
     the discretion of Lessor, normal and reasonable for and office shall be
     paid by Lessee.

28.  Lessor reserves the right to make such other and further reasonable
     regulations as in its judgement may from time to time be needed or
     desirable for the safety, care and cleanliness of Leased Premises, the
     Building of the Office Complex, and the preservation of good order therein.

                                       3

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