Document:

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EXHIBIT 10.35

                             MASTER LEASE AGREEMENT

                    dated as of AUGUST 1, 2002 ("Agreement")

         THIS AGREEMENT is between General Electric Capital Corporation
(together with its successors and assigns, if any, "Lessor") and Overhill Farms,
Inc. ("Lessee"). Lessor has an office at 44 Old Ridgebury Road, Danbury, CT
06810. Lessee is a corporation organized and existing under the laws of the
state of Nevada. Lessee's mailing address and chief place of business is 2727 E.
Vernon Avenue, Vernon, Los Angeles County, CA 90058. This Agreement contains the
general terms that apply to the leasing of Equipment from Lessor to Lessee.
Additional terms that apply to the Equipment (term, rent, options, etc.) shall
be contained on a schedule ("Schedule").

1. LEASING:

         (a) Lessor agrees to lease to Lessee, and Lessee agrees to lease from
Lessor, the equipment and the property ("Equipment") described in any Schedule
signed by both parties.

         (b) Lessor shall purchase Equipment from the manufacturer or supplier
("Supplier") and lease it to Lessee if on or before the Last Delivery Date
Lessor receives (i) a Schedule for the Equipment, (ii) evidence of insurance
which complies with the requirements of Section 9, and (iii) such other
documents as Lessor may reasonably request. Each of the documents required above
must be in form and substance satisfactory to Lessor. Lessor hereby appoints
Lessee its agent for inspection and acceptance of the Equipment from the
Supplier. Once the Schedule is signed, the Lessee may not cancel the Schedule.

2. TERM, RENT AND PAYMENT:

         (a) The rent payable for the Equipment and Lessee's right to use the
Equipment shall begin on the earlier of (i) the date when the Lessee signs the
Schedule and accepts the Equipment or (ii) when Lessee has accepted the
Equipment under a Certificate of Acceptance ("Lease Commencement Date"). The
term of this Agreement shall be the period specified in the applicable Schedule.
The word "term" shall include all basic and any renewal terms.

         (b) Lessee shall pay rent to Lessor at its address stated above, except
as otherwise directed by Lessor. Rent payments shall be in the amount set forth
in, and due as stated in the applicable Schedule. If any Advance Rent (as stated
in the Schedule) is payable, it shall be due when the Lessee signs the Schedule.
Advance Rent shall be applied to the first rent payment and the balance, if any,
to the final rent payment(s) under such Schedule. In no event shall any Advance
Rent or any other rent payments be refunded to Lessee. If rent is not paid
within ten (10) days of its due date, Lessee agrees to pay a late charge of five
cents ($.05) per dollar on, and in addition to, the amount of such rent but not
exceeding the lawful maximum, if any.

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3. RENT ADJUSTMENT:

         (a) If, solely as a result of Congressional enactment of any law
(including, without limitation, any modification of, or amendment or addition
to, the Internal Revenue Code of 1986, as amended, ("Code")), the maximum
effective corporate income tax rate (exclusive of any minimum tax rate) for
calendar-year taxpayers ("Effective Rate") is higher than thirty-five percent
(35%) for any year during the lease term, then Lessor shall have the right to
increase such rent payments by requiring payment of a single additional sum. The
additional sum shall be equal to the product of (i) the Effective Rate
(expressed as a decimal) for such year less .35 (or, in the event that any
adjustment has been made hereunder for any previous year, the Effective Rate
(expressed as a decimal) used in calculating the next previous adjustment) times
(ii) the adjusted Termination Value (defined below), divided by (iii) the
difference between the new Effective Rate (expressed as a decimal) and one (1).
The adjusted Termination Value shall be the Termination Value (calculated as of
the first rent due in the year for which the adjustment is being made) minus the
Tax Benefits that would be allowable under Section 168 of the Code (as of the
first day of the year for which such adjustment is being made and all future
years of the lease term). The Termination Values and Tax Benefits are defined on
the Schedule. Lessee shall pay to Lessor the full amount of the additional rent
payment on the later of (i) receipt of notice or (ii) the first day of the year
for which such adjustment is being made.

         (b) If, solely as a result of Congressional enactment of any law
(including, without limitation, any modification of, or amendment or addition
to, the Code, the Effective Rate is lower than thirty-five percent (35%) for any
year during the lease term, then Lessor shall upon request reduce such rent
payments by a single sum. The reduction shall be equal to the product of (i) the
Effective Rate (expressed as a decimal) for such year less .35 (or, in the event
that any adjustment has been made hereunder for any previous year, the Effective
Rate (expressed as a decimal) used in calculating the next previous adjustment)
times (ii) the adjusted Termination Value (defined below), divided by (iii) the
difference between the new Effective Tax Rate (expressed as a decimal) and one
(I). The adjusted Termination Value shall be the Termination Value (calculated
as of the first rent due in the year for which the adjustment is being made)
minus the Tax Benefits that would be allowable under Section 168 of the Code (as
of the first day of the year for which such adjustment is being made and all
future years of the lease term). The Termination Values and Tax Benefits are
defined on the Schedule. Lessor shall pay to Lessee the full amount of the rent
reduction on the later of (i) receipt of notice or (ii) the first day of the
year for which such adjustment is being made.

         (c) Lessee's obligations under this Section 3 shall survive any
expiration or termination of this Agreement

4. TAXES:

         (a) If permitted by law, Lessee shall report and pay promptly all
taxes, fees and assessments due, imposed, assessed or levied against any
Equipment (or purchase, ownership, delivery, leasing, possession, use or
operation thereof), this Agreement (or any rents or receipts hereunder), any
Schedule, Lessor or Lessee by any governmental entity or taxing authority during
or related to the term of this Agreement, including, without limitation, all
license and registration fees, and all sales, use, personal property, excise,

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gross receipts, franchise, stamp or other taxes, imposts, duties and charges,
together with any penalties, fines or interest thereon (collectively "Taxes").
Lessee shall have no liability for Taxes imposed by the United States of America
or any state or political subdivision thereof which are on or measured by the
net income of Lessor except as provided in Sections 3 and 14(c). Lessee shall
promptly reimburse Lessor (on an after tax basis) for any Taxes charged to or
assessed against Lessor. Lessee shall show Lessor as the owner of the Equipment
on all tax reports or returns, and send Lessor a copy of each report or return
and evidence of Lessee's payment of Taxes upon request

         (b) Lessee's obligations, and Lessor's rights and privileges, contained
in this Section 4 shall survive the expiration or other termination of this
Agreement.

5. REPORTS:

         (a) If any tax or other lien shall attach to any Equipment, Lessee will
notify Lessor in writing, within ten (10) days after Lessee becomes aware of the
tax or lien. The notice shall include the full particulars of the tax or lien
and the location of such Equipment on the date of the notice.

         (b) Lessee will deliver to Lessor, Lessee's complete financial
statements, certified by a recognized firm of certified public accountants
within ninety (90) days of the close of each fiscal year of Lessee. Lessee will
deliver to Lessor copies of Lessees quarterly financial report certified by the
chief financial officer of Lessee, within ninety (90) days of the close of each
fiscal quarter of Lessee. Lessee will deliver to Lessor all Forms 10-K and 10-Q,
if any, filed with the Securities and Exchange Commission within thirty (30)
days after the date on which they are filed.

         (c) Lessor may inspect any Equipment during normal business hours after
giving Lessee reasonable prior notice.

         (d) Lessee will keep the Equipment at the Equipment Location (specified
in the applicable Schedule) and will give Lessor prior written notice of any
relocation of Equipment. If Lessor asks, Lessee will promptly notify Lessor in
writing of the location of any Equipment.

         (e) If any Equipment is lost or damaged (where the estimated repair
costs would exceed the greater of ten percent (10%) of the original Equipment
cost or ten thousand and 00/100 dollars ($10,000)), or is otherwise involved in
an accident causing personal injury or property damage, Lessee will promptly and
fully report the event to Lessor in writing.

         (f) Lessee will furnish a certificate of an authorized officer of
Lessee stating that he has reviewed the activities of Lessee and that, to the
best of his knowledge, there exists no default or event which with notice or
lapse of time (or both) would become such a default within thirty (30) days
after any request by Lessor.

         (g) Lessee will promptly notify Lessor of any change in Lessee's state
of incorporation or organization.

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6. DELIVERY, USE AND OPERATION:

         (a) All Equipment shall be shipped directly from the Supplier to
Lessee.

         (b) Lessee agrees that the Equipment will be used by Lessee solely in
the conduct of its business and in a manner complying with all applicable laws,
regulations and insurance policies and Lessee shall not discontinue use of the
Equipment

         (c) Lessee will not move any equipment from the location specified on
the Schedule, without the prior written consent of Lessor.

         (d) Lessee will keep the Equipment free and clear of all liens and
encumbrances other than those which result from acts of Lessor.

         (e) Lessor shall not disturb Lessee's quiet enjoyment of the Equipment
during the term of the Agreement unless a default has occurred and is continuing
under this Agreement

7. MAINTENANCE:

         (a) Lessee will, at its sole expense, maintain each unit of Equipment
in good operating order and repair, normal wear and tear excepted. The Lessee
shall also maintain the Equipment in accordance with manufacturer's
recommendations. Lessee shall make all alterations or modifications required to
comply with any applicable law, rule or regulation during the term of this
Agreement. If Lessor requests, Lessee shall affix plates, tags or other
identifying labels showing ownership thereof by Lessor. The tags or labels shall
be placed in a prominent position on each unit of Equipment

         (b) Lessee will not attach or install anything on any Equipment that
will impair the originally intended function or use of such Equipment without
the prior written consent of Lessor. All additions, parts, supplies,
accessories, and equipment ("Additions") furnished or attached to any Equipment
that are not readily removable shall become the property of Lessor. All
Additions shall be made only in compliance with applicable law. Lessee will not
attach or install any Equipment to or in any other personal or real property
without the prior written consent of Lessor.

8. STIPULATED LOSS VALUE: If for any reason any unit of Equipment becomes worn
out, lost, stolen, destroyed, irreparably damaged or unusable ("Casualty
Occurrences") Lessee shall promptly and fully notify Lessor in writing. Lessee
shall pay Lessor the sum of (i) the Stipulated Loss Value (see Schedule) of the
affected unit determined as of the rent payment date prior to the Casualty
Occurrence; and (ii) all rent and other amounts which are then due under this
Agreement on the Payment Date (defined below) for the affected unit. The Payment
Date shall be the next rent payment date after the Casualty Occurrence. Upon
Payment of all sums due hereunder, the term of this lease as to such unit shall
terminate.

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9. INSURANCE:

         (a) Lessee shall bear the entire risk of any loss, theft, damage to, or
destruction of, any unit of Equipment from any cause whatsoever from the time
the Equipment is shipped to Lessee.

         (b) Lessee agrees, at its own expense, to keep all Equipment insured
for such amounts and against such hazards as Lessor may reasonably require. All
such policies shall be with companies, and on terms, reasonably satisfactory to
Lessor. The insurance shall include coverage for damage to or loss of the
Equipment, liability for personal injuries, death or property damage. Lessor
shall be named as additional insured with a loss payable clause in favor of
Lessor, as its interest may appear, irrespective of any breach of warranty or
other act or omission of Lessee. The insurance shall provide for liability
coverage in an amount equal to at least ONE MILLION U.S. DOLLARS ($1,000,000.00)
total liability per occurrence, unless otherwise stated in any Schedule. The
casualty/property damage coverage shall be in an amount equal to the higher of
the Stipulated Loss Value or the full replacement cost of the Equipment. No
insurance shall be subject to any co-insurance clause. The insurance policies
shall provide that the insurance may not be altered or canceled by the insurer
until after thirty (30) days written notice to Lessor. Lessee agrees to deliver
to Lessor evidence of insurance reasonably satisfactory to Lessor.

         (c) Lessee hereby appoints Lessor as Lessee's attorney-in-fact to make
proof of loss and claim for insurance, and to make adjustments with insurers and
to receive payment of and execute or endorse all documents, checks or drafts in
connection with insurance payments. Lessor shall not act as Lessee's
attorney-in-fact unless Lessee is in default. Lessee shall pay any reasonable
expenses of Lessor in adjusting or collecting insurance. Lessee will not make
adjustments with insurers except with respect to claims for damage to any unit
of Equipment where the repair costs are less than the lesser of ten percent
(10%) of the original Equipment cost or ten thousand and 00/100 dollars
($10,000). Lessor may, at its option, apply proceeds of insurance, in whole or
in part, to (i) repair or replace Equipment or any portion thereof, or (ii)
satisfy any obligation of Lessee to Lessor under this Agreement

10. RETURN OF EQUIPMENT:

         (a) At the expiration or termination of this Agreement or any Schedule,
Lessee shall perform any testing and repairs required to place the units of
Equipment in the same condition and appearance as when received by Lessee
(reasonable wear and tear excepted) and in good working order for the original
intended purpose of the Equipment. If required the units of Equipment shall be
deinstalled, disassembled and crated by an authorized manufacturer's
representative or such other service person as is reasonably satisfactory to
Lessor. Lessee shall remove installed markings that are not necessary for the
operation, maintenance or repair of the Equipment. All Equipment will be
cleaned, cosmetically acceptable, and in such condition as to be immediately
installed into use in a similar environment for which the Equipment was
originally intended to be used. All waste material and fluid must be removed
from the Equipment and disposed of in accordance with then current waste
disposal laws. Lessee shall return the units of Equipment to a location within
the continental United States as Lessor shall direct. Lessee shall obtain and
pay for a policy of transit insurance for the redelivery period in an amount
equal to the replacement value of the Equipment. The transit insurance must name
Lessor as the loss payee. The Lessee shall pay for all costs to comply with this
section (a).

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         (b) Until Lessee has fully complied with the requirements of Section
10(a) above, Lessee's rent payment obligation and all other obligations under
this Agreement shall continue from month to month notwithstanding any expiration
or termination of the lease term. Lessor may terminate the Lessee's right to use
the Equipment upon ten (10) days notice to Lessee.

         (c) Lessee shall provide to Lessor a detailed inventory of all
components of the Equipment including model and serial numbers. Lessee shall
also provide an up-to-date copy of all other documentation pertaining to the
Equipment. All service manuals, blue prints, process flow diagrams, operating
manuals, inventory and maintenance records shall be given to Lessor at least
ninety (90) days and not more than one hundred twenty (120) days prior to lease
termination.

         (d) Lessee shall make the Equipment available for on-site operational
inspections by potential purchasers at least one hundred twenty (120) days prior
to and continuing up to lease termination. Lessor shall provide Lessee with
reasonable notice prior to any inspection. Lessee shall provide personnel, power
and other requirements necessary to demonstrate electrical, hydraulic and
mechanical systems for each item of Equipment

11. DEFAULT AND REMEDIES:

         (a) Lessor may in writing declare this Agreement in default if: (i)
Lessee breaches its obligation to pay rent or any other sum when due and fails
to cure the breach within ten (10) days; (ii) Lessee breaches any of its
insurance obligations under Section 9; (iii) Lessee breaches any of its other
obligations and fails to cure that breach within thirty (30) days after written
notice from Lessor; (iv) any representation or warranty made by Lessee in
connection with this Agreement shall be false or misleading in any material
respect; (v) Lessee or any guarantor or other obligor for the Lessee's
obligations hereunder ("Guarantor") becomes insolvent or ceases to do business
as a going concern; (vi) any Equipment is illegally used; (vii) if Lessee or any
Guarantor is a natural person, any death or incompetency of Lessee or such
Guarantor; (viii) a petition is filed by or against Lessee or any Guarantor
under any bankruptcy or insolvency laws and in the event of an involuntary
petition, the petition is not dismissed within forty-five (45) days of the
filing date; or (ix) Lessee defaults under any other material obligation for (A)
borrowed money, (B) the deferred purchase price of property, or (C) payments due
under lease agreements. The default declaration shall apply to all Schedules
unless specifically excepted by Lessor.

         (b) After a default, at the request of Lessor, Lessee shall comply with
the provisions of Section 10(a). Lessee hereby authorizes Lessor to peacefully
enter any premises where any Equipment may be and take possession of the
Equipment. Lessee shall immediately pay to Lessor without further demand as
liquidated damages for loss of a bargain and not as a penalty, the Stipulated
Loss Value of the Equipment (calculated as of the rent payment date prior to the
declaration of default), and all rents and other sums then due under this
Agreement and all Schedules. Lessor may terminate this Agreement as to any or
all of the Equipment. A termination shall occur only upon written notice by

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Lessor to Lessee and only as to the units of Equipment specified in any such
notice. Lessor may, but shall not be required to, sell Equipment at private or
public sale, in bulk or in parcels, with or without notice, and without having
the Equipment present at the place of sale. Lessor may also, but shall not be
required to, lease, otherwise dispose of or keep idle all or part of the
Equipment. Lessor may use Lessee's premises for a reasonable period of time for
any or all of the purposes stated above without liability for rent, costs,
damages or otherwise. The proceeds of sale, lease or other disposition, if any,
shall be applied in the following order of priorities: (i) to pay all of
Lessor's costs, charges and expenses incurred in taking, removing, holding,
repairing and selling, leasing or otherwise disposing of Equipment; then, (ii)
to the extent not previously paid by Lessee, to pay Lessor all sums due from
Lessee under this Agreement; then (iii) to reimburse to Lessee any sums
previously paid by Lessee as liquidated damages; and (iv) any surplus shall be
retained by Lessor. Lessee shall immediately pay any deficiency in (i) and (ii)
above.

         (c) The foregoing remedies are cumulative, and any or all thereof may
be exercised instead of or in addition to each other or any remedies at law, in
equity, or under statute. Lessee waives notice of sale or other disposition (and
the time and place thereof), and the manner and place of any advertising. Lessee
shall pay Lessor's actual attorney's fees incurred in connection with the
enforcement, assertion, defense or preservation of Lessor's rights and remedies
under this Agreement, or if prohibited by law, such lesser sum as may be
permitted. Waiver of any default shall not be a waiver of any other or
subsequent default.

         (d) Any default under the terms of this or any other agreement between
Lessor and Lessee may be declared by Lessor a default under this and any such
other agreement.

12. ASSIGNMENT: LESSEE SHALL NOT SELL, TRANSFER, ASSIGN, ENCUMBER OR SUBLET ANY
EQUIPMENT OR THE INTEREST OF LESSEE IN THE EQUIPMENT WITHOUT THE PRIOR WRITTEN
CONSENT OF LESSOR Lessor may, without the consent of Lessee, assign this
Agreement, any Schedule or the right to enter into a Schedule. Lessee agrees
that if Lessee receives written notice of an assignment from Lessor, Lessee will
pay all rent and all other amounts payable under any assigned Schedule to such
assignee or as instructed by Lessor. Lessee also agrees to confirm in writing
receipt of the notice of assignment as may be reasonably requested by assignee.
Lessee hereby waives and agrees not to assert against any such assignee any
defense, set-of, recoupment claim or counterclaim which Lessee has or may at any
time have against Lessor for any reason whatsoever.

13. NET LEASE: Lessee is unconditionally obligated to pay all rent and other
amounts due for the entire lease term no matter what happens, even if the
Equipment is damaged or destroyed, if it is defective or if Lessee no longer can
use it. Lessee is not entitled to reduce or set-off against rent or other
amounts due to Lessor or to anyone to whom Lessor assigns this Agreement or any
Schedule whether Lessee's claim arises out of this Agreement, any Schedule, any
statement by Lessor, Lessor's liability or any manufacturer's liability, strict
liability, negligence or otherwise.

14. INDEMNIFICATION:

         (a) Lessee hereby agrees to indemnify Lessor, its agents, employees,
successors and assigns (on an after tax basis) from and against any and all
losses, damages, penalties, injuries, claims, actions and suits, including legal
expenses, of whatsoever kind and nature arising out of or relating to the

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Equipment or this Agreement, except to the extent the losses, damages,
penalties, injuries, claims, actions, suits or expenses result from Lessor's
gross negligence or willful misconduct ("Claims"). This indemnity shall include,
but is not limited to, Lessor's strict liability in tort and Claims, arising out
of (i) the selection, manufacture, purchase, acceptance or rejection of
Equipment, the ownership of Equipment during the term of this Agreement, and the
delivery, lease, possession, maintenance, uses, condition, return or operation
of Equipment (including, without limitation, latent and other defects, whether
or not discoverable by Lessor or Lessee and any claim for patent, trademark or
copyright infringement or environmental damage) or (ii) the condition of
Equipment sold or disposed of after use by Lessee, any sublessee or employees of
Lessee. Lessee shall, upon request, defend any actions based on, or arising out
of, any of the foregoing.

         (b) (i) Lessee hereby acknowledges that it is the Lessor's belief that
on the Lease Commencement Date for any unit of Equipment, such unit will qualify
for all of the items of deduction and credit specified in Section C of the
applicable Schedule ("Tax Benefits") in the hands of Lessor, and (ii) Lessee
hereby represents, warrants and covenants that at no time during the term of
this Agreement will Lessee take or omit to take, nor will it permit any
sublessee or assignee to take or omit to take, any action (whether or not such
act or omission is otherwise permitted by Lessor or by this Agreement), which
will result in the disqualification of any Equipment for, or recapture of, all
or any portion of such Tax Benefits.

         (c) If as a result of a breach of any representation, warranty or
covenant of the Lessee contained in this Agreement or any Schedule (i) tax
counsel of Lessor shall determine that Lessor is not entitled to claim on its
Federal income tax return all or any portion of the Tax Benefits with respect to
any Equipment, or (ii) any Tax Benefit claimed on the Federal income tax return
of Lessor is disallowed or adjusted by the Internal Revenue Service, or (Iii)
any Tax Benefit is recalculated or recaptured (any determination, disallowance,
adjustment, recalculation or recapture being a "Loan"), then Lessee shall pay to
Lessor, as an indemnity and as additional rent, an amount that shall, in the
reasonable opinion of Lessor, cause Lessor's after-tax economic yields and cash
flows to equal the Net Economic Return that would have been realized by Lessor
if such Loss had not occurred. Such amount shall be payable upon demand
accompanied by a statement describing in reasonable detail such Loss and the
computation of such amount. The economic yields and cash flows shall be computed
on the same assumptions, including tax rates as were used by Lessor in
originally evaluating the transaction ("Net Economic Return"). If an adjustment
has been made under Section 3 then the Effective Rate used in the next preceding
adjustment shall be substituted.

         (d) All references to Lessor in this Section 14 include Lessor and the
consolidated taxpayer group of which Lessor is a member. All of Lessor's rights,
privileges and indemnities contained in this Section 14 shall survive the
expiration or other termination of this Agreement. The rights, privileges and
indemnities contained herein are expressly made for the benefit of, and shall be
enforceable by Lessor, its successors and assigns.

15. DISCLAIMER: LESSEE ACKNOWLEDGES THAT IT HAS SELECTED THE EQUIPMENT WITHOUT
ANY ASSISTANCE FROM LESSOR, ITS AGENTS OR EMPLOYEES. LESSOR DOES NOT MAKE, HAS
NOT MADE, NOR SHALL BE DEEMED TO MAKE OR HAVE MADE, ANY WARRANTY OR
REPRESENTATION, EITHER EXPRESS OR IMPLIED, WRITTEN OR ORAL, WITH RESPECT TO THE
EQUIPMENT LEASED UNDER THIS AGREEMENT OR ANY COMPONENT THEREOF, INCLUDING,

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WITHOUT LIMITATION, ANY WARRANTY AS TO DESIGN, COMPLIANCE WITH SPECIFICATIONS,
QUALITY OF MATERIALS OR WORKMANSHIP, MERCHANTABILITY, FITNESS FOR ANY PURPOSE,
USE OR OPERATION, SAFETY, PATENT, TRADEMARK OR COPYRIGHT INFRINGEMENT, OR TITLE.
All such risks, as between Lessor and Lessee, are to be borne by Lessee. Without
limiting the foregoing, Lessor shall have no responsibility or liability to
Lessee or any other person with respect to any of the following; (i) any
liability, loss or damage caused or alleged to be caused directly or indirectly
by any Equipment, any inadequacy thereof, any deficiency or defect (latent or
otherwise) of the Equipment, or any other circumstance in connection with the
Equipment; (ii) the use, operation or performance of any Equipment or any risks
relating to it; (iii) any interruption of service, loss of business or
anticipated profits or consequential damages; or (iv) the delivery, operation,
servicing, maintenance, repair, improvement or replacement of any Equipment. If,
and so long as, no default exists under this Agreement, Lessee shall be, and
hereby is, authorized during the term of this Agreement to assert and enforce
whatever claims and rights Lessor may have against any Supplier of the Equipment
at Lessee's sole cost and expense, in the name of and for the account of Lessor
and/or Lessee, as their interests may appear.

16. REPRESENTATIONS AND WARRANTIES OF LESSEE: Lessee makes each of the following
representations and warranties to Lessor on the date hereof and on the date of
execution of each Schedule.

         (a) Lessee has adequate power and capacity to enter into, and perform
under, this Agreement and all related documents (together, the "Documents").
Lessee is duly qualified to do business wherever necessary to carry on its
present business and operations, including the jurisdiction(s) where the
Equipment is or is to be located.

         (b) The Documents have been duly authorized, executed and delivered by
Lessee and constitute valid, legal and binding agreements, enforceable in
accordance with their terms, except to the extent that the enforcement of
remedies may be limited under applicable bankruptcy and insolvency laws.

         (c) No approval, consent or withholding of objections is required from
any governmental authority or entity with respect to the entry into or
performance by Lessee of the Documents except such as have already been
obtained.

         (d) The entry into and performance by Lessee of the Documents will not:
(i) violate any judgment, order, law or regulation applicable to Lessee or any
provision of Lessee's Certificate of Incorporation or bylaws; or (ii) result in
any breach of, constitute a default under or result in the creation of any lien,
charge, security interest or other encumbrance upon any Equipment pursuant to
any indenture, mortgage, deed of trust, bank loan or credit agreement or other
instrument (other than this Agreement) to which Lessee is a party.

         (e) There are no suits or proceedings pending or threatened in court or
before any commission, board or other administrative agency against or affecting
Lessee, which if decided against Lessee will have a material adverse effect on
the ability of Lessee to fulfill its obligations under this Agreement

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         (f) The Equipment accepted under any Certificate of Acceptance is and
will remain tangible personal property.

         (g) Each financial statement delivered to Lessor has been prepared in
accordance with generally accepted accounting principles consistently applied.
Since the date of the most recent financial statement, there has been no
material adverse change.

         (h) Lessee's exact legal name is as set forth in the first sentence of
this Agreement and Lessee is and will be at all times validly existing and in
good standing under the laws of the State of its incorporation or organization
(specified in the first sentence of this Agreement).

         (i) The Equipment will at all times be used for commercial or business
purposes.

17. EARLY TERMINATION:

         (a) On or after the First Termination Date (specified in the applicable
Schedule), Lessee may, so long as no default exists hereunder, terminate this
Agreement as to all (but not less than all) of the Equipment on such Schedule as
of a rent payment date ("Termination Date"). Lessee must give Lessor at least
ninety (90) days prior written notice of the termination.

         (b) Lessee shall, and Lessor may, solicit cash bids for the Equipment
on an AS IS, WHERE IS BASIS without recourse to or warranty from Lessor, express
or implied ("AS IS BASIS"). Prior to the Termination Date, Lessee shall (i)
certify to Lessor any bids received by Lessee and (ii) pay to Lessor (A) the
Termination Value (calculated as of the rent due on the Termination Date) for
the Equipment, and (B) all rent and other sums due and unpaid as of the
Termination Date.

         (c) If all amounts due hereunder have been paid on the Termination
Date, Lessor shall (i) sell the Equipment on an AS IS BASIS for cash to the
highest bidder and (ii) refund the proceeds of such sale (net of any related
expenses) to Lessee up to the amount of the Termination Value. If such sale is
not consummated, no termination shall occur and Lessor shall refund the
Termination Value (less any expenses incurred by Lessor) to Lessee.

         (d) Notwithstanding the foregoing, Lessor may elect by written notice,
at any time prior to the Termination Date, not to sell the Equipment. In that
event, on the Termination Date Lessee shall (i) return the Equipment (n
accordance with Section 10) and (ii) pay to Lessor all amounts required under
Section 17(b) less the amount of the highest bid certified by Lessee to Lessor.

18. PURCHASE OPTION:

         (a) Lessee may at lease expiration purchase all (but not less than all)
of the Equipment in any Schedule on an AS IS BASIS for cash equal to its then
Fair Market Value (plus all applicable sales taxes). Lessee must notify Lessor
of its intent to purchase the Equipment in writing at least one hundred eighty
(180) days in advance. If Lessee is in default or if the Lease has already been
terminated Lessee may not purchase the Equipment

                                      -10-
<PAGE>

         (b) "Fair Market Value" shall mean the price that a willing buyer (who
is neither a lessee in possession nor a used equipment dealer) would pay for the
Equipment in an arm's-length transaction to a willing seller under no compulsion
to sell. In determining the Fair Market Value the Equipment shall be assumed to
be in the condition in which it is required to be maintained and returned under
this Agreement. If the Equipment is installed it shall be valued on an installed
basis. The costs of removal from current location shall not be a deduction from
the value of the Equipment. If Lessor and Lessee are unable to agree on the Fair
Market Value at least one hundred thirty-five (135) days before lease
expiration, Lessor shall appoint an independent appraiser (reasonably acceptable
to Lessee) to determine Fair Market Value. The independent appraiser's
determination shall be final, binding and conclusive. Lessee shall bear all
costs associated with any such appraisal.

         (c) Lessee shall be deemed to have waived this option unless it
provides Lessor with written notice of its irrevocable election to exercise the
same within fifteen (15) days after Fair Market Value is told to Lessee.

19. MISCELLANEOUS:

         (a) LESSEE AND LESSOR UNCONDITIONALLY WAIVE THEIR RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT, ANY OF THE RELATED DOCUMENTS, ANY DEALINGS BETWEEN LESSEE AND LESSOR
RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION OR ANY RELATED TRANSACTIONS,
AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN LESSEE AND LESSOR. THE
SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES
THAT MAY BE FILED IN ANY COURT. THIS WAIVER IS IRREVOCABLE. THIS WAIVER MAY NOT
BE MODIFIED EITHER ORALLY OR IN WRITING. THE WAIVER ALSO SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT,
ANY RELATED DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS
TRANSACTION OR ANY RELATED TRANSACTION. THIS AGREEMENT MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL BY THE COURT.

         (b) The Equipment shall remain Lessor's property unless Lessee
purchases the Equipment from Lessor and until such time Lessee shall only have
the right to use the Equipment as a lessee. Any cancellation or termination by
Lessor of this Agreement, any Schedule, supplement or amendment hereto, or the
lease of any Equipment hereunder shall not release Lessee from any then
outstanding obligations to Lessor hereunder. All Equipment shall at all times
remain personal property of Lessor even though it may be attached to real
property. The Equipment shall not become part of any other property by reason of
any installation in, or attachment to, other real or personal property .

                                      -11-
<PAGE>

         (c) Time is of the essence of this Agreement. Lessor's failure at any
time to require strict performance by Lessee of any of the provisions hereof
shall not waive or diminish Lessor's right at any other time to demand strict
compliance with this Agreement. Lessee agrees, upon Lessor's request, to
execute, or otherwise authenticate, any document, record or instrument necessary
or expedient for filing, recording or perfecting the interest of Lessor or to
carry out the intent of this Agreement. In addition, Lessee hereby authorizes
Lessor to file a financing statement and amendments thereto describing the
Equipment described in any and all Schedules now and hereafter executed pursuant
hereto and adding any other collateral described therein and containing any
other information required by the applicable Uniform Commercial Code. Lessee
irrevocably grants to Lessor the power to sign Lessee's name and generally to
act on behalf of Lessee to execute and file financing statements and other
documents pertaining to any or all of the Equipment. All notices required to be
given hereunder shall be deemed adequately given if sent by registered or
certified mail to the addressee at its address stated herein, or at such other
place as such addressee may have specified in writing. This Agreement and any
Schedule and Annexes thereto constitute the entire agreement of the parties with
respect to the subject matter hereof. NO VARIATION OR MODIFICATION OF THIS
AGREEMENT OR ANY WAIVER OF ANY OF ITS PROVISIONS OR CONDITIONS, SHALL BE VALID
UNLESS IN WRITING AND SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE PARTIES
HERETO.

         (d) If Lessee does not comply with any provision of this Agreement,
Lessor shall have the right, but shall not be obligated, to effect such
compliance, in whole or in part. All reasonable amounts spent and obligations
incurred or assumed by Lessor in effecting such compliance shall constitute
additional rent due to Lessor. Lessee shall pay the additional rent within five
days after the date Lessor sends notice to Lessee requesting payment. Lessor's
effecting such compliance shall not be a waiver of Lessee's default.

         (e) Any rent or other amount not paid to Lessor when due shall bear
interest, from the due date until paid, at the lesser of eighteen percent (18%)
per annum or the maximum rate allowed by law. Any provisions in this Agreement
and any Schedule that are in conflict with any statute, law or applicable rule
shall be deemed omitted, modified or altered to conform thereto.

         (f) Lessee hereby irrevocably authorizes Lessor to adjust the
Capitalized Lessor's Cost up or down by no more than ten percent (10%) within
each Schedule to account for equipment change orders, equipment returns,
invoicing errors, and similar matters. Lessee acknowledges and agrees that the
rent shall be adjusted as a result of the change in the Capitalized Lessor's
Cost. Lessor shall send Lessee a written notice stating the final Capitalized
Lessor's Cost, if it has changed.

         (g) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH,
THE INTERNAL LAWS OF THE STATE OF CONNECTICUT (WITHOUT REGARD TO THE CONFLICT OF
LAWS PRINCIPLES OF SUCH STATE), INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY
AND PERFORMANCE, REGARDLESS OF THE LOCATION OF THE EQUIPMENT.

         (h) Any cancellation or termination by Lessor, pursuant to the
provisions of this Agreement, any Schedule, supplement or amendment hereto, of
the lease of any Equipment hereunder, shall not release Lessee from any then
outstanding obligations to Lessor hereunder.

                                      -12-
<PAGE>

         (1) To the extent that any Schedule would constitute chattel paper, as
such term is defined m the Uniform Commercial Code as in effect in any
applicable jurisdiction, no security interest therein may be created through the
transfer or possession of this Agreement in and of itself without the transfer
or possession of the original of a Schedule executed pursuant to this Agreement
and incorporating this Agreement by reference; and no security interest in this
Agreement and a Schedule may be created by the transfer or possession of any
counterpart of the Schedule other than the original thereof, which shall be
identified as the document marked "Original" and all other counterparts shall be
marked "Duplicate".

         IN WITNESS WHEREOF, Lessee and Lessor have caused this Agreement to be
executed by their duly authorized representatives as of the date first above
written.

LESSOR                                      LESSEE:
General Electric Capital Corporation        Overhill Farms, Inc.

By: /S/ IRIS KWONG                          By: /S/ RICHARD A. HORVATH
    -------------------------------             --------------------------------
Name: IRIS KWONG                            Name: RICHARD A. HORVATH
    -------------------------------             --------------------------------
Tide:  SR. RISK ANALYST                     Title:  CFO
    -------------------------------             --------------------------------

                                      -13-
<PAGE>

General Electric Capital Corporation
44 Old Ridgebury Road
Danbury, CT 06810

Re: Master Lease Agreement between General Electric Capital Corporation ("GE
Capital") and Overhill Farms, Inc. ("Overhill") dated as of 8/1, 2002 and
Schedule No 3 (the "Lease") with respect to the following equipment (the
"Equipment"):

         Four (4) Frigoscandia Refrigeration System Freezers Model
         GCM106-10-29-46 WE CR, and

         One (1) Frigoscandia Refrigeration System Model FB 940 ACPT; and

         One (1) Chester-Jensen Chiller B-12-OT-12-32

In consideration of, and in order to induce you to enter into, the Lease, the
undersigned represents, warrants and covenants:

1.       Overhill has authorized GE Capital to acquire the Equipment from US
         Bancorp for the purpose of leasing it to Overhill pursuant to the
         Lease.

2.       GE Capital is acquiring the Equipment solely for the purpose of leasing
         it to Overhill pursuant to the Lease. US Bancorp will deliver to GE
         Capital a Bill of Sale for the Equipment, a copy of which is attached
         hereto and incorporated here by this reference. Overhill has had a
         sufficient opportunity to review the terms of the Bill of Sale and has
         accepted, for all purposes of the Lease, all the terms and conditions
         thereof, including without limitation the disclaimers and limitations
         on warranties with respect to the Equipment.

3.       Overhill understands that GE Capital is relying upon these
         representations and warranties in acquiring the Equipment and entering
         into the Lease with Overhill and would not acquire the Equipment nor
         enter into the Lease without these representations and warranties.

4.       US Bancorp and Overhill does hereby indemnify and hold harmless GE
         Capital for any loss, liability or expense arising from the breach by
         such party of any of the foregoing representations, warranties and
         agreements.

Overhill Farms, Inc.

By: /S/ RICHARD A. HORVATH
    ----------------------------
Title: CFO
    ----------------------------
Date:     8/1, 2002
    ----------------------------

<PAGE>

                               CORPORATE LESSEE'S
                          BOARD OF DIRECTORS RESOLUTION

The undersigned hereby certifies: (i) that she/he is the Secretary of Overhill
Farms, Inc.; (ii) that the following is a true and correct copy of resolutions
duly adopted at a meeting of the Board of Directors of said Corporation duly
held on the _____________________ day of _________________, ________; and (iii)
that said resolutions have not been amended, rescinded, modified or revoked, and
are in full force and effect:

"RESOLVED, that each of the officers of this Corporation, whose name and
signature appears below:

NAME                        TITLE                      SIGNATURE
--------------------------- -------------------------- -------------------------

James Rudis                 President                  /s/ James Rudis
--------------------------- -------------------------- -------------------------

Richard A. Horvath          Sr. V.P., Secretary        /s/ Richard A. Horvath
--------------------------- -------------------------- -------------------------

William E. Shatley          Sr. V.P., Treasurer        /s/ William E. Shatley
--------------------------- -------------------------- -------------------------

or the duly elected or appointed successor in office of any or all of them, be,
and hereby is, authorized and empowered in the name and on behalf of this
Corporation to enter into, execute and deliver a master lease agreement with
General Electric Capital Corporation (together with its successors and assigns,
if any, "Lessor") as Lessor, providing for the leasing to (or sale and leaseback
by) this Corporation, from time to time, of certain equipment, and further
providing for this Corporation to indemnity said Lessor against certain
occurrences and against the loss of contemplated tax treatment; and

         FURTHER RESOLVED, that each officer of this Corporation be, and hereby
is, authorized and empowered in the name and on behalf of this Corporation to
enter into, execute and deliver any documents and to do and perform all other
acts and deeds which may be necessary or appropriate to effectuate the lease (or
sale and leaseback) of equipment from Lessor; and

         FURTHER RESOLVED, that the Lessor may rely upon the aforesaid
resolutions until receipt by it of written notice of any change.

         IN WITNESS WHEREOF, I have set may hand and affixed the seal of said
Corporation this 1st day of August, 2002.

(CORPORATE SEAL)

/S/ RICHARD A. HORVATH
---------------------------
Secretary

<PAGE>

                               CORPORATE GUARANTY

                                                            Date: August 1, 2002

General Electric Capital Corporation
44 Old Ridgebury Road
Danbury, CT 06810

         To induce you to enter into, purchase or otherwise acquire, now or at
any time hereafter, any promissory notes, security agreements, chattel
mortgages, pledge agreements, conditional sale contracts, lease agreements,
and/or any other documents or instruments evidencing, or relating to, any lease,
loan, extension of credit or other financial accommodation (collectively
"Account Documents" and each an "Account Document") to Overhill Farms, Inc., a
corporation organized and existing under the laws of the State of Nevada
("Customer"), but without in any way binding you to do so, the undersigned, for
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, does hereby guarantee to you, your successors and assigns, the due
regular and punctual payment of any sum or sums of money which the Customer may
owe to you now or at any time hereafter, whether evidenced by an Account
Document, on open account or otherwise, and whether it represents principal,
interest, rent, late charges, indemnities, an original balance, an accelerated
balance, liquidated damages, a balance reduced by partial payment, a deficiency
after sale or other disposition of any leased equipment, collateral or security,
or any other type of sum of any kind whatsoever that the Customer may owe to you
now or at any time hereafter, and does hereby further guarantee to you, your
successors and assigns, the due, regular and punctual performance of any other
duty or obligation of any kind or character whatsoever that the Customer may owe
to you now or at any time hereafter for so long as customer is a wholly owned
subsidiary of guarantor (all such payment and performance obligations being
collectively referred to as "Obligations"). Undersigned does hereby further
guarantee to pay upon demand all losses, costs, attorneys' fees and expenses
which may be suffered by you by reason of Customer's default or default of the
undersigned. This guarantee and guarantor's obligation arising hereunder
(including the Obligations) shall terminate upon delivery to you of written
notice regarding the disposition by guarantor of one hundred percent (100%) of
its ownership interest in customer by virtue of the purposed spin-off disclosed
to you or otherwise.

         This Guaranty is a guaranty of prompt payment and performance (and not
merely a guaranty of collection). Nothing herein shall require you to first seek
or exhaust any remedy against the Customer, its successors and assigns, or any
other person obligated with respect to the Obligations, or to first foreclose,
exhaust or otherwise proceed against any leased equipment, collateral or
security which may be given in connection with the Obligations. It is agreed
that you may, upon any breach or default of the Customer, or at any time
thereafter, make demand upon the undersigned and receive payment and performance
of the Obligations, with or without notice or demand for payment or performance
by the Customer, its successors or assigns, or any other person. Suit may be
brought and maintained against the undersigned, at your election, without
joinder of the Customer or any other person as parties thereto. The obligations
of each signatory to this Guaranty shall be joint and several.

<PAGE>

         The undersigned agrees that its obligations under this Guaranty shall
be primary, absolute, continuing and unconditional, irrespective of and
unaffected by any of the following actions or circumstances (regardless of any
notice to or consent of the undersigned): (a) the genuineness, validity,
regularity and enforceability of the Account Documents or any other document;
(b) any extension, renewal, amendment, change, waiver or other modification of
the Account Documents or any other document; (c) the absence of, or delay in,
any action to enforce the Account Documents, this Guaranty or any other
document; (d) your failure or delay in obtaining any other guaranty of the
Obligations (including, without limitation, your failure to obtain the signature
of any other guarantor hereunder); (e) the release of, extension of time for
payment or performance by, or any other indulgence granted to the Customer or
any other person with respect to the Obligations by operation of law or
otherwise; (f) the existence, value, condition, loss, subordination or release
(with or without substitution) of, or failure to have title to or perfect and
maintain a security interest in, or the time, place and manner of any sale or
other disposition of any leased equipment, collateral or security given in
connection with the Obligations, or any other impairment (whether intentional or
negligent, by operation of law or otherwise) of the rights of the undersigned;
(g) the Customer's voluntary or involuntary bankruptcy, assignment for the
benefit of creditors, reorganization, or similar proceedings affecting the
Customer or any of its assets; or (h) any other action or circumstances which
might otherwise constitute a legal or equitable discharge or defense of a surety
or guarantor.

         This Guaranty, the Account Documents and the Obligations may be
assigned by you, without the consent of the Undersigned. The Undersigned agrees
that if it receives written notice of an assignment from you, the Undersigned
will pay all amounts due hereunder to such assignee or as instructed by you. The
Undersigned also agrees to confirm in writing receipt of the notice of
assignment as may be reasonably requested by assignee. The Undersigned hereby
waives and agrees not to assert against any such assignee any of the defenses
set forth in the immediate preceding paragraph.

         This Guaranty may be terminated upon delivery to you (at your address
shown above) of a written termination notice from the undersigned. However, as
to all Obligations (whether matured, unmatured, absolute, contingent or
otherwise) incurred by the Customer prior to your receipt of such written
termination notice (and regardless of any subsequent amendment, extension or
other modification which may be made with respect to such Obligations), this
Guaranty shall nevertheless continue and remain undischarged until all such
Obligations are indefeasibly paid and performed in full.

         The undersigned agrees that this Guaranty shall remain in full force
and effect or be reinstated (as the case may be) if at any time payment or
performance of any of the Obligations (or any part thereof) is rescinded,
reduced or must otherwise be restored or returned by you, all as though such
payment or performance had not been made. If, by reason of any bankruptcy,
insolvency or similar laws effecting the rights of creditors, you shall be
prohibited from exercising any of your rights or remedies against the Customer
or any other person or against any property, then, as between you and the
undersigned, such prohibition shall be of no force and effect, and you shall
have the right to make demand upon, and receive payment from, the undersigned of
all amounts and other sums that would be due to you upon a default with respect
to the Obligations.

                                      -2-
<PAGE>

         Notice of acceptance of this Guaranty and of any default by the
Customer or any other person is hereby waived. Presentment, protest demand, and
notice of protest. demand and dishonor of any of the Obligations, and the
exercise of possessory, collection or other remedies for the Obligations, are
hereby waived. The undersigned warrants that it has adequate means to obtain
from the Customer on a continuing basis financial data and other information
regarding the Customer and is not relying upon you to provide any such data or
other information. Without limiting the foregoing, notice of adverse change in
the Customer's financial condition or of any other fact which might materially
increase the risk of the undersigned is also waived. All settlements,
compromises. accounts stated and agreed balances made in good faith between the
Customer, its successors or assigns, and you shall be binding upon and shall not
affect the liability of the undersigned.

         Payment of all amounts now or hereafter owed to the undersigned by the
Customer or any other obligor for any of the Obligations is hereby subordinated
in right of payment to the indefeasible payment in full to you of all
Obligations and is hereby assigned to you as a security therefor. The
undersigned hereby irrevocably and unconditionally waives and relinquishes all
statutory, contractual, common law, equitable and all other claims against the
Customer, any other obligor for any of the Obligations, any collateral therefor,
or any other assets of the Customer or any such other obligor, for subrogation,
reimbursement, exoneration, contribution, indemnification, setoff or other
recourse in respect of sums paid or payable to you by the undersigned hereunder,
and the undersigned hereby further irrevocably and unconditionally waives and
relinquishes any and all other benefits which it might otherwise directly or
indirectly receive or be entitled to receive by reason of any amounts paid by,
or collected or due from, it, the Customer or any other obligor for any of the
Obligations, or realized from any of their respective assets.

         THE UNDERSIGNED HEREBY UNCONDITIONALLY WAIVES ITS RIGHT TO A JURY TRIAL
OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF, DIRECTLY OR
INDIRECTLY, THIS GUARANTY, THE OBLIGATIONS GUARANTEED HEREBY, ANY OF THE RELATED
DOCUMENTS, ANY DEALINGS BETWEEN US RELATING TO THE SUBJECT MATTER HEREOF OR
THEREOF, AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN US. THE SCOPE
OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT
MAY BE FILED IN ANY COURT (INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT
CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS).
THIS WAIVER IS IRREVOCABLE MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR
IN WRITING, AND SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS
OR MODIFICATIONS TO THIS GUARANTY, THE OBLIGATIONS GUARANTEED HEREBY, OR ANY
RELATED DOCUMENTS. IN THE EVENT OF LITIGATION, THIS GUARANTY MAY BE FILED AS A
WRITTEN CONSENT TO A TRIAL BY THE COURT.

                                      -3-
<PAGE>

         As used in this Guaranty, the word "person" shall include any
individual, corporation, partnership, joint venture, association, joint-stock
company, trust, unincorporated organization, or any government or any political
subdivision thereof.

         This Guaranty is intended by the parties as a final expression of the
guaranty of the undersigned and is also intended as a complete and exclusive
statement of the terms thereof. No course of dealing, course of performance or
trade usage, nor any paid evidence of any kind, shall be used to supplement or
modify any of the terms hereof. Nor are there any conditions to the full
effectiveness of this Guaranty. This Guaranty and each of its provisions may
only be waived, modified, varied, released, terminated or surrendered, in whole
or in part, by a duly authorized written instrument signed by you. No failure by
you to exercise your rights hereunder shall give rise to any estoppel against
you, or excuse the undersigned from performing hereunder. Your waiver of any
right to demand performance hereunder shall not be a waiver of any subsequent or
other right to demand performance hereunder.

         This Guaranty shall bind the undersigned's successors and assigns and
the benefits thereof shall extend to and include your successors and assigns. In
the event of default hereunder, you may at any time inspect undersigned's
records, or at your option, undersigned shall furnish you with a current
independent audit report.

         If any provisions of this Guaranty are in conflict with any applicable
statute, rule or law, then such provisions shall be deemed null and void to the
extent that they may conflict therewith, but without invalidating any other
provisions hereof.

         Each signatory on behalf of a corporate guarantor warrants that he had
authority to sign on behalf of such corporation and by so signing, to bind said
guarantor corporation hereunder.

         IN WITNESS WHEREOF, this Guaranty is executed the day and year above
written.

                                           Overhill Corporation

                                           By:  /S/ JAMES RUDIS
                                                --------------------------------
                                                    (Signature)

                                           Title:   PRESIDENT
                                                --------------------------------
                                                    (Officer's Title)

ATTEST: /S/ ANDY HORVATH
        ------------------------------
        Secretary/Assistant Secretary

                                      -4-
<PAGE>

                       FOOD PROCESSING EQUIPMENT SCHEDULE
                                 SCHEDULE NO. 3
                                DATED THIS 8/1/02
                            TO MASTER LEASE AGREEMENT
                               DATED AS OF 8/1/02

LESSOR & MAILING ADDRESS:                          LESSEE & MAILING ADDRESS:
----------------------------------------------------------------------------

General Electric Capital Corporation               Overhill Farms, Inc.
44 Old Ridgebury Road                              P.O. Box 806
Danbury, CT 06810                                  Vernon, CA 90058

This Schedule is executed pursuant to, and incorporates by reference the terms
and conditions of, and capitalized terms not defined herein shall have the
meanings assigned to them in, the Master Lease Agreement identified above
("Agreement" said Agreement and this Schedule being collectively referred to as
"Lease"). This Schedule, incorporating by reference the Agreement, constitutes a
separate instrument of lease.

A.       EQUIPMENT: Subject to the terms and conditions of the Lease, Lessor
         agrees to Lease to Lessee the Equipment described below (the
         "Equipment").
<TABLE>
<CAPTION>

 NUMBER OF       CAPITALIZED
   UNITS        LESSOR'S COST          MANUFACTURER        SERIAL NUMBER   MODEL AND TYPE OF EQUIPMENT
   -----        -------------          ------------        -------------   ---------------------------
<S>             <C>                    <C>                 <C>             <C>
1                  $760,000.00         Frigoscandia                        FB 940 ACPT       Field Built Refrigeration System
                                                                           consisting of 1998 FES mdl. 32LB rotary screw
                                                                           ammonia refrigeration compressor, 500HP drive
                                                                           motor, oil separator tank, heat exchanger, and
                                                                           micro III control, s/n: 98485034, (3) 1998 FES
                                                                           model 28MB rotary screw ammonia refrigeration
                                                                           compressors, 300HP drive motors, oil separator
                                                                           tanks, heat exchangers and Micro III controls,
                                                                           s/n's 98485031, 98485032 & 98485033, (4) 1998 FES
                                                                           model 19L rotary screw ammonia refrigeration
                                                                           compressors, 400HP drive motors, oil seperator
                                                                           tanks, heat exchangers and Micro Ill controls,
                                                                           s/n's: 98485035, 98485038, 98485036, 98485037,
                                                                           Intercooler tank, transfer vessel, receiver, auto
                                                                           purger, ammonia emergency refrigerant control,
                                                                           15,470 gallon water storage tank, piping and (8)
                                                                           3PH, 60HZ control panels, (2) 1998 BAC model
                                                                           VC2-1082 4-fan evaporative condensors, s/n:
                                                                           97227541 w/ platforms w/ Chester-Jensen
                                                                           B-12-OT-12-32 Chiller

1                  $285,000.00         Frigoscandia       10651            GCM 106-10-29-46 WE CR Gyrocompact In-LineSpiral
                                                                           Freezer

1                  $285,000.00         Frigoscandia       10652            GCM 106-10-29-46 WE CR Gyrocompact In-LineSpiral
                                                                           Freezer

<PAGE>

1                  $285,000.00         Figoscandia        10653            GCM 106-10-29-46 WE CR Gyrocompact In-LineSpiral
                                                                           Freezer

1                  $285,000.00         Frigoscandia       10654            GCM 106-10-29-46 WE CR Gyrocompact In-LineSpiral
                                                                           GCM 106-10-29-46 WE CR Gyrocompact In-LineSpiral
                                                                           Freezer

1                  $225,000.00                                             Repossession Expenses

1                  $256,886.21      Hannibal Material                      Pallet Racking
                                         Handling

I                   $21,975.00        Stellar Group                        XLP-S250 Evaporative Condenser
1                      $375.00                                             Freight

23                  $97,461.00        Stellar Group                        Evaporator Coils
1                    $1,198.00                                             Freight

1                   $39,867.00        Stellar Group                        Recircular Vessel and High Pressure Rec.
I                    $3,100.00                                             Freight

1                    $2,911.00        Stellar Group                        Heat Exchanger
1                      $350.00                                             Freight

1                   $71,893.00        Stellar Group                        RWF 177H Screw Compressor
1                    $4,160.00                                             Freight

1                    $7,816.70        Stellar Group                        Flow Indicators/Balancing Valves
1                      $284.40                                             Freight

1                    $8,930.25        Stellar Group                        Polyethylene Pipe
1                      $221.34                                             Freight

l                  $305,021.00        Stellar Group                        Glycol Chiller with Pump, Ammonia Leak Detection
                                                                           System, Hand Valves/Control Groups, Frick Control
                                                                           System, Diffusion Tank, Ammonia, Process Safety
                                                                           Management Program, Pipe Labels, Heat Tape, Piping
                                                                           and Fittings per invoice no. 50900058 dated
                                                                           6/19/2002
1                  $121,900.00                                             Freight and Labor

1                  $350,000.00                                             Re-installation of four (4) Spiral Freezers and
                                                                           Refrigeration Equipment per invoice no. 2727-2
                                                                           dated 6/21/02
</TABLE>

Including all parts, accessions, additions, attachments, subsitutions,
replacements and proceeds thereof.
Equipment immediately listed above is located at: 2727 E. Vernon Avenue, Vernon,
Los Angeles County, CA 90058

                                      -2-
<PAGE>
<TABLE>
<S>                                             <C>
B.  FINANCIAL TERMS
1. Advance Rent (if any): $150,000.00           5. Basic Term Commencement Date:
2. Capitalized Lessor's Cost: $3,419,349.90     6. Lessee Federal Tax ID No.: 752590292
3. Basic Term (No. of Months): 60 Months.       7. Last Delivery Date: December 31, 2002
4. Basic Term Lease Rate Factor: 1 through 18   8. Daily Lease Rate Factor. 0.688249%
    @ 4386799%,
    19 through 21 @ 2.924533%, 22 through 60 @ 0.193846%
</TABLE>

9.       First Termination Date: Thirty-six (36) months after the Basic Term
         Commencement Date.

10.      Interim Rent: For the period from and including the Lease Commencement
         Date to but not including the Basic Term Commencement Date ("Interim
         Period"), Lessee shall pay as rent ("Interim Rent") for each unit of
         Equipment, the product of the Daily Lease Rate Factor times the
         Capitalized Lessor's Cost of such unit times the number of days in the
         Interim Period. Interim Rent shall be due on N/A.

11.      Basic Term Rent. Commencing on 8/1/02 and on the same day of each month
         thereafter (each, a "Rent Payment Date") during the Basic Term, Lessee
         shall pay as rent ("Basic Term Rent") the product of the Basic Term
         Lease Rate Factor times the Capitalized Lessor's Cost of all Equipment
         on this Schedule.

C. TAX BENEFITS Depreciation Deductions:

1.       Depreciation method is the 200 % declining balance method, switching to
         straight line method for the 1st taxable year for which using the
         straight line method with respect to the adjusted basis as of the
         beginning of such year will yield a larger allowance, taking into
         account the 30% special depreciation allowance and basis adjustment
         under Section 168(k)(I) of the code.

2.       Recovery Period: Three (3) Years.

3.       Basis: 100 % of the Capitalized Lessor's Cost.

D.       PROPERTY TAX

APPLICABLE TO EQUIPMENT LOCATED IN 2727 E. VERNON AVENUE, VERNON, CA 90058:
Lessee agrees that it will (a) list all such Equipment, (b) report all property
taxes assessed against such Equipment and (c) pay all such taxes when due
directly to the appropriate taxing authority until Lessor shall otherwise direct
in writing. Upon request of Lessor, Lessee shall promptly provide proof of
filing and proof of payment to Lessor.

Lessor may notify Lessee (and Lessee agrees to follow such notification)
regarding any changes in property tax reporting and payment responsibilities.

                                      -3-
<PAGE>

E. ARTICLE 2A NOTICE

IN ACCORDANCE WITH THE REQUIREMENTS OF ARTICLE 2A OF THE UNIFORM COMMERCIAL CODE
AS ADOPTED IN THE APPLICABLE STATE, LESSOR HEREBY MAKES THE FOLLOWING
DISCLOSURES TO LESSEE PRIOR TO EXECUTION OF THE LEASE, (A) THE PERSON(S)
SUPPLYING THE EQUIPMENT IS US Bancorp, The Stellar Group, Hannibal Material
Handling, Overhill Farms, Inc. (THE "SUPPLIER(S)"), (B) LESSEE IS ENTITLED TO
THE PROMISES AND WARRANTIES, INCLUDING THOSE OF ANY THIRD PARTY, PROVIDED TO THE
LESSOR BY SUPPLIER(S), WHICH IS SUPPLYING THE EQUIPMENT IN CONNECTION WITH OR AS
PART OF THE CONTRACT BY WHICH LESSOR ACQUIRED THE EQUIPMENT AND (C) WITH RESPECT
TO SUCH EQUIPMENT, LESSEE MAY COMMUNICATE WITH SUPPLIER(S) AND RECEIVE AN
ACCURATE AND COMPLETE STATEMENT OF SUCH PROMISES AND WARRANTIES, INCLUDING ANY
DISCLAIMERS AND LIMITATIONS OF THEM OR OF REMEDIES. TO THE EXTENT PERMITTED BY
APPLICABLE LAW, LESSEE HEREBY WAIVES ANY AND ALL RIGHTS AND REMEDIES CONFERRED
UPON A LESSEE IN ARTICLE 2A AND ANY RIGHTS NOW OR HEREAFTER CONFERRED BY STATUTE
OR OTHERWISE WHICH MAY LIMIT OR MODIFY ANY OF LESSOR'S RIGHTS OR REMEDIES UNDER
THE DEFAULT AND REMEDIES SECTION OF THE AGREEMENT.

F. STIPULATED LOSS AND TERMINATION VALUE TABLE*

                                                 stipulated
                                                       loss
    # of base        termination value                value
    payments                 % of cost            % of cost
    --------                 ---------            ---------

        1                      103.188              107.168
        2                       99.979              103.940
        3                       96.679              100.621
        4                       93.320               97.243
        5                       89.892               93.796
        6                       86.394               90.279
        7                       82.837               86.702
        8                       79.219               83.066
        9                       75.548               79.376
       10                       71.825               75.634
       11                       68.048               71.838
       12                       64.218               67.988
       13                       60.325               64.076
       14                       56.377               60.110
       15                       52.375               56.088
       16                       48.308               52.003
       17                       44.186               47.862
       18                       40.008               43.664
       19                       35.787               39.424
       20                       32.985               36.603
       21                       30.141               33.740
       22                       27.296               30.876
       23                       27.180               30.742
       24                       27.063               30.606
       25                       26.945               30.468

                                      -4-
<PAGE>

       26                       26.825               30.330
       27                       26.705               30.190
       28                       26.582               30.049
       29                       26.458               29.906
       30                       26.334               29.762
       31                       26.207               29.616
       32                       26.078               29.468
       33                       25.945               29.316
       34                       25.806               29.158
       35                       25.663               28.996
       36                       25.514               28.829
       37                       25.364               28.659
       38                       25.209               28.485
       39                       25.049               28.306
       40                       24.887               28.125
       41                       24.719               27.938
       42                       24.547               27.747
       43                       24.373               27.554
       44                       24.197               27.359
       45                       24.020               27.163
       46                       23.843               26.967
       47                       23.665               26.770
       48                       23.487               26.573
       49                       23.307               26.373
       50                       23.126               26.173
       51                       22.944               25.973
       52                       22.761               25.770
       53                       22.576               25.567
       54                       22.392               25.363
       55                       22.205               25.157
       56                       22.016               24.949
       57                       21.837               24.752
       58                       21.670               24.566
       59                       21.513               24.390
       60                       21.367               24.225

*The Stipulated Loss Value or Termination Value for any unit of Equipment shall
be the Capitalized Lessor's Cost of such unit multiplied by the appropriate
percentage derived from the above table. In the event that the Lease is for any
reason extended, then the last percentage figure shown above shall control
throughout any such extended term.

G. MODIFICATIONS AND ADDITIONS FOR THIS SCHEDULE ONLY

For purposes of this Schedule only, the Agreement is amended as follows:

                                      -5-
<PAGE>

I. The INDEMNIFICATION Section subsection (b) of the Lease is hereby amended by
deleting the word "and" immediately preceding "(ii)" on the second line thereof
and inserting the following at the end thereof:

;(iii) each item of Equipment constitutes "qualified property" pursuant to
Section 168(k) of the Internal Revenue Code of 1986, as now and hereafter
amended (the "Code"), and is eligible for the additional first-year depreciation
deduction equal to thirty percent (30%) of the Capitalized Lessor's Cost of the
Equipment contemplated by the Code; (iv) the Equipment shall be treated as
originally placed in service not earlier than the date of the execution and
delivery of this Schedule, or in the event the transaction is a sale-leaseback
transaction, Lessee shall not have placed in service the Equipment subject to
this Lease at any time prior to three months before the execution and delivery
of this Schedule; (v) Lessee has not arranged to purchase, and Lessor is not
purchasing the Equipment pursuant to a binding written contract entered into
before September 11, 2001, and (vi) each item of Equipment shall be placed in
service before January 1, 2005.

2. EQUIPMENT SPECIFIC PROVISIONS

         MAINTENANCE PROVISIONS: In addition to the provisions provided for in
the MAINTENANCE Section of the Lease, Lessee shall, at its expense:

         (a) maintain the Equipment in a manner and frequency suggested by the
manufacturer.

         (b) maintain the Equipment in an operable state and shall not
discontinue operation of the Equipment throughout the Lease term.

         (c) maintain the Equipment to industry standards.

         (d) maintain the Equipment in a similar manner and fashion as if the
Equipment were owned by the Lessee.

         (e) maintain the Equipment under a preventive maintenance program by
qualified professionals who possess a working knowledge of the mechanical
operation of the Equipment including electrical systems, motors, drives,
controls, accessories, lubricants and all other items necessary to make the
machine operate to its original manufacturer's specifications.

         (f) have the Equipment meet all local, state, and federal laws,
regulations and codes that regulate the use and operation of such Equipment and
will not contribute to or be used in any way as to directly or indirectly
violate any local, state or federal law including Food and Drug Administration
and Environmental Protection Agency.

         (g) maintain a maintenance log on the Equipment showing all routine and
non-routine maintenance and repairs. Said log shall list in summary form
maintenance, repairs or modifications performed on the Equipment, the date any
and all of such service and by whom the service was performed. This log shall be
made available to the Lessor at its request during normal working hours or the
Lessee.

                                      -6-
<PAGE>

         INSPECTION: The REPORTS Section subsection (c) of the Lease is deleted
and replaced with the following:

         (c) Lessor at its sole discretion, may from time to time, inspect the
Equipment at the Lessors sole expense. If any discrepancies are found as they
pertain to the general condition of the Equipment as required hereunder, the
Lessor will, communicate these discrepancies to the Lessee in writing. The
Lessee shall have thirty (30) days to rectify these discrepancies at his sole
expense. The Lessee should pay all expenses for a re-inspection by a Lessor
appointed expert if corrective measures are required.

         RETURN PROVISIONS: In addition to the provisions provided for in the
RETURN OF EQUIPMENT Section of the Lease, and provided that Lessee has elected
not to exercise its option to purchase the Equipment, Lessee shall, at its
expense:

         (a) At least ninety (90) days and not more than one hundred twenty
(120) days prior to lease termination: (i) ensure Equipment has been maintained,
and is operating within manufacturer's specifications, as well as all local,
state and federal laws and regulations, including those of the Food and Drug
Administration and Environmental Protection Agency and; (ii) cause
manufacturer's representative or other qualified maintenance provider,
acceptable to Lessor, to perform a physical inspection and test of all the
components and capabilities of the Equipment and to provide a full inspection
report to Lessor.

         (b) Upon lease termination: (i) fill to operation levels all internal
fluids, secure filler caps, seal disconnection hoses, reinstall, and match mark
all connections; (ii) have a qualified provider approved by Lessor, deinstall
all equipment; (iii) properly skid and pack and transport the Equipment per the
manufacturer's requirements to any location(s) within the continental United
States as Lessor shall direct; (iv) at lessor's choice, either (1) allow Lessor,
at Lessor's expense, and provided Lessor has provided reasonable notice to
Lessee, arrange for an on-site auction of the Equipment which will be conducted
in a manner which will not interfere with Lessee's business operations, or (2)
at the request of Lessor, provide safe, secure storage for the Equipment for
sixty (60) days after expiration or earlier termination of the Lease at an
accessible location satisfactory to Lessor.

3. GRANT OF CONTINGENT SECURITY INTEREST

         This transaction is intended as a lease of the Equipment. If for any
reason this transaction shall be deemed to be one intended for security rather
than a true lease, then solely in that event and for that purpose, Lessee hereby
grants to Lessor a first security interest in the Equipment, together with all
additions, attachments, accessions, accessories and accessions thereto whether
or not furnished by the Supplier of the Equipment and any and all substitutions,
replacements or exchanges therefore, and any and all insurance and/or other
proceeds of the property in and against which a security interest is granted
hereunder, to secure the prompt payment and performance as and when due of each
obligation of Lessee under the Lease, including without limitation, the payment
of rent. Lessee authorizes Lessor to file one or more financing statements to
give notice of and/or perfect any security interest granted herein.

                                      -7-
<PAGE>

4. LESSEE APPROVAL OF FORM OF BILL OF SALE

         Lessee has authorized and directed Lessor to acquire part of the
Equipment from U.S. Bancorp Equipment Finance, Inc. Lessee acknowledges and
agrees that prior to executing this Lease it has reviewed the form of Bill of
Sale offered by US Bancorp by which Lessor will acquire rights in the Equipment
in connection with this Lease and Lessee accepts all the terms and conditions
thereof including without limitation the disclaimers and limitations of warranty
by the Supplier. A copy of the form of Bill of Sale is attached hereto as an
Exhibit "A".

H. PAYMENT AUTHORIZATION

You are hereby irrevocably authorized and directed to deliver and apply the
proceeds due under this Schedule as follows:
<TABLE>
<CAPTION>
Company Name                                            Address                                    Amount
------------------------------------------------------- ------------------------------------------ -------------------
<S>                                                     <C>                                        <C>
US Bancorp Equipment Finance, Inc.                      7659 SW Mohawk Street                      $2,125,000.00
Machine Tool Finance Group                              Tualatin, OR 97062
(503) 797-0256
Invoice No's: 05310202, 06060201, 06060202,
06060203, 06060204

The Stellar Group                                       2045 N. Fine Avenue                        $687,463.69
(888) 326-0909                                          Fresno, CA 93727
Invoice No: 50900058

Hannibal Material Handling                              2230 E. 38th Street                        $256,886.21
(323) 587-4060                                          Los Angeles, CA 90058
Invoice No. 712

Overhill Farms, Inc.                                    2727 E. Vernon Avenue                      $350,000.00
(323) 582-9977                                          Vernon, CA 90058
(Held by General Electric Capital Corporation until invoices are submitted by
customer for funding)                                                                              $3,419,349.90
Total Pay Proceeds
</TABLE>

This authorization and direction is given pursuant to the same authority
authorizing the above-mentioned financing.

         Pursuant to the provisions of the lease, as it relates to this
Schedule, Lessee hereby certifies and warrants that (i) all Equipment listed
above has been delivered and installed (if applicable) as of the date stated
above; (ii) Lessee has inspected the Equipment, and all such testing as it deems
necessary has been performed by Lessee, Supplier or the manufacturer; and (iii)
Lessee accepts the Equipment for all purposes of the Lease, the purchase
documents and all attendant documents.

         Lessee does further certify that as of the date hereof (i) Lessee is
not in default under the Lease; (ii) the representations and warranties made by
Lessee pursuant to or under the Lease are true and correct on the date hereof
and (iii) Lessee has reviewed and approves of the purchase documents for the
Equipment, if any.

                                      -8-
<PAGE>

         Lessee hereby authorizes Lessor to file a financing statement and
amendments thereto describing the Equipment described in this Schedule and
adding any other collateral described herein and containing any other
information required by the applicable Uniform Commercial Code. Further, Lessee
irrevocably grants to Lessor the power to sign Lessee's name and generally to
act on behalf of Lessee to execute and file financing statements and other
documents pertaining to any or all of the Equipment.

         Except as expressly modified hereby, all terms and provisions of the
Agreement shall remain in full force and effect. This Schedule is not binding or
effective with respect to the Agreement or Equipment until executed on behalf of
Lessor and Lessee by authorized representatives of Lessor and Lessee,
respectively.

         IN WITNESS WHEREOF, Lessee and Lessor have caused this Schedule to be
executed by their duly authorized representatives as of the date first above
written.

LESSOR:                                      LESSEE:

General Electric Capital Corporation         Overhill Farms, Inc.

By: /S/ IRIS KWONG                           By: /S/ RICHARD A. HORVATH
    -----------------------------                -------------------------------
Name: IRIS KWONG                             Name: RICHARD A. HORVATH
    -----------------------------                -------------------------------
Title:  SR. RISK ANALYST                     Title: CFO
    -----------------------------                -------------------------------

                                      -9-
<PAGE>

                                     ANNEX B
                                       TO
                                 SCHEDULE NO. 3
                            TO MASTER LEASE AGREEMENT
                               DATED AS OF 8/1/02
                      PURCHASE ORDER ASSIGNMENT AND CONSENT

         THIS ASSIGNMENT AGREEMENT, dated as of 8/1/02 ("Agreement"), between
General Electric Capital Corporation (together with its successors and assigns,
if any, "Lessor") and Overhill Farms, Inc. ("Lessee").

                                   WITNESSETH:

         Lessee desires to lease certain equipment ("Equipment") from Lessor
pursuant to the above schedule and lease (collectively, "Lease"). All terms used
herein which are not otherwise defined shall have the meaning ascribed to them
in the Lease.

         Lessee desires to assign, and Lessor is willing to acquire, certain of
Lessee's rights and interests under the purchase order(s), agreement(s), and/or
document(s) (the "Purchase Orders") Lessee has heretofore issued to the
Supplier(s) of such Equipment.

         NOW, THEREFORE, in consideration of the mutual covenants herein
contained, Lessor and Lessee hereby agree as follows:

SECTION 1. ASSIGNMENT.

         (a) Lessee does hereby assign and set over to Lessor all of Lessee's
rights and interests in and to such Equipment and the Purchase Orders as the
same relate thereto including, without limitation, (i) the rights to purchase,
to take title, and to be named the purchaser in the bill of sale for, such
Equipment, (ii) all claims for damages in respect of such Equipment arising as a
result of any default by the Supplier (including, without limitation, all
warranty and indemnity claims) and (iii) any and all rights of Lessee to compel
performance by the Supplier.

         (b) If, and so long as, no default exists under the Lease, Lessee shall
be, and is hereby, authorized during the term of the Lease to assert and
enforce, at Lessee's sole cost and expense, from time to time, in the name of
and for the account of Lessor and/or Lessee, as their interests may appear,
whatever claims and rights Lessor may have against any Supplier of the
Equipment.

SECTION 2. CONTINUING LIABILITY OF LESSEE.

         It is expressly agreed that, anything herein contained to the contrary
notwithstanding: (a) Lessee shall at all times remain liable to the Supplier to
perform all of the duties and obligations of the purchaser under the Purchase
Orders to the same extent as if this Agreement had not been executed, (b) the
execution of this Agreement shall not modify any contractual rights of the
Supplier under the Purchase Orders and the liabilities of the Supplier under the
Purchase Orders shall be to the same extent and continue as if this Agreement
bad not been executed, (c) the exercise by the Lessor of any of the rights

<PAGE>

hereunder shall not release Lessee from any of its duties or obligations to the
Supplier under the Purchase Orders, and (d) Lessor shall not have any obligation
or liability under the Purchase Orders by reason of, or arising out of, this
Agreement or be obligated to perform any of the obligations or duties of Lessee
under the Purchase Orders or to make any payment (other than under the terms and
conditions set forth in the Lease) or to make any inquiry of the sufficiency of
or authorization for any payment received by any Supplier or to present or file
any claim or to take any other action to collect or enforce any claim for any
payment assigned hereunder.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written.

LESSOR:                                      LESSEE:

General Electric Capital Corporation         Overhill Farms, Inc.

By: /S/ IRIS KWONG                           By:  /S/ RICHARD A. HORVATH
    -----------------------------                -------------------------------
Name: IRIS KWONG                             Name: RICHARD A. HORVATH
    -----------------------------                -------------------------------
Title: SR. RISK ANALYST                      Title: CFO
    -----------------------------                -------------------------------

                                      -2-
<PAGE>

                              CONSENT AND AGREEMENT

         Supplier hereby consents to the above assignment agreement
("Agreement") and agrees not to assert any claims against Lessor or Overhill
Farms, Inc. (Lessee) inconsistent with such agreement. Supplier agrees that the
Purchase Orders are hereby amended as necessary to provide as follows:

         (a) Title to and risk of loss of the Equipment shall pass to Lessor
upon Lessee's execution of the Certificate of Acceptance for such Equipment.

         (b) Supplier hereby waives and discharges any security interest, liens
or other encumbrances in/or upon the Equipment and agrees to execute such
documents as Lessor may request evidencing the release of any such encumbrance
and the conveyance of title thereto to Lessor.

         (c) Supplier agrees that on and after the date this Consent is executed
it will not make any addition to or delete any items from the Equipment referred
to in the Agreement without the prior written consent of both Lessor and Lessee.

         (d) Seller represents that the Equipment has been accurately labeled,
consistent with the requirements of 40 CFR Part 82 Subpart E, with respect to
products manufactured with a controlled (ozone-depleting) substance.

         IN WITNESS WHEREOF the undersigned has caused this Consent to be
executed this 1 day of Aug., 2002.

                                        SUPPLIER:

                                        The Stellar Group agrees and consents
                                        subject to final payment

                                        By:   /S/ (ILLEGIBLE)
                                              -------------------------------
                                        Title:  VP CONTROLLER
                                              -------------------------------

<PAGE>

                  CROSS-COLLATERAL AND CROSS-DEFAULT AGREEMENT

General Electric Capital Corporation
44 Old Ridgebury Road
Danbury, CT 06810

Gentlemen:

         You (and/or your successors or assigns, "you") have entered into or
purchased one or more conditional sale contracts, lease agreements, chattel
mortgages, security agreements, notes and other choses in action (herein
designated "Accounts") arising from the bona fide sale or lease to us, by
various vendors or lessors, of equipment and inventory (herein designated
"Collateral") and/or you have made direct loans to or otherwise extended credit
to us evidenced by Accounts creating security interests in Collateral.

         In order to induce you to extend our time of payment on one or more
Accounts and/or to make additional loans to us and/or to purchase additional
Accounts and/or to lease us additional equipment, and in consideration of you so
doing, and for other good and valuable consideration, the receipt of which we
hereby acknowledge, we agree as follows:

         All presently existing and hereafter acquired Collateral in which you
have or shall have a security interest shall secure the payment and performance
of all of our liabilities and obligations to you of every kind and character,
whether joint or several, direct or indirect, absolute or contingent, due or to
become due, and whether under presently existing or hereafter created Accounts
or agreements, or otherwise.

         We further agree that your security interest in the property covered by
any Account now held or hereafter acquired by you shall not be terminated in
whole or in part until and unless all indebtedness of every kind, due or to
become due, owed by us to you is fully paid and satisfied and the terms of every
Account have been fully performed by us. It is further agreed that you are to
retain your security interest in all property covered by all Accounts held or
acquired by you, as security for payment and performance under each such
Account, notwithstanding the fact that one or more of such Accounts may become
fully paid.

         This instrument is intended to create cross-default and cross-security
between and among all the within described Accounts now owned or hereafter
acquired by you.

         A default under any Account or agreement shall be deemed to be a
default under all other Accounts and agreements. A default shall result if we
fail to pay any sum when due on any Account or agreement, or if we breach any of
the other terms and conditions thereof, or if we become insolvent, cease to do
business as a going concern, make an assignment for the benefit of creditors, or
if a petition for a receiver or in bankruptcy is filed by or against us, or if
any of our property is seized, attached or levied upon, provided however that in
the event of an involuntary petition, being filed against us, it shall not be a
default if such petition is dismissed within forty-five (45) days. Upon our
default any or all Accounts and agreements shall, at your option, become

<PAGE>

immediately due and payable without notice or demand to us or any other party
obligated thereon, and you shall have and may exercise any and all rights and
remedies of a secured party under the Uniform Commercial Code as enacted in the
applicable jurisdiction and as otherwise granted to you under any Account or
other agreement. We hereby waive, to the maximum extent permitted by law,
notices of default, notices of repossession and sale or other disposition of
collateral, and all other notices, and in the event any such notice cannot be
waived, we agree that if such notice is mailed to us postage prepaid at the
address shown below at least five (5) days prior to the exercise by you of any
of your rights or remedies, such notice shall be deemed to be reasonable and
shall fully satisfy any requirement for giving notice.

         All rights granted to you hereunder shall be cumulative and not
alternative, shall be in addition to and shall in no manner impair or affect
your rights and remedies under any existing Account, agreement, statute or rule
of law.

         This agreement may not be varied or altered nor its provisions waived
except by your duly executed written agreement. This agreement shall inure to
the benefit of your successors and assigns and shall be binding upon our heirs,
administrators, executors, legal representatives, successors and assigns.

         IN WITNESS WHEREOF, this agreement is executed this 1 day of August,
2002.

                                Overhill Farms, Inc.
                                (Name of Proprietorship, Partnership or
                                Corporation, as applicable)

                                by: /S/ RICHARD A HORVATH
                                    --------------------------------------------
                                    (Signature)

                                Title:   CFO
                                    --------------------------------------------
                                    (Owner, Partner or Officer, as applicable)

                                Address: 2727 E. Vernon Avenue, Vernon, CA 90058

                                      -2-
<PAGE>

                                   EXHIBIT "A"

RECORDING REQUESTED BY:

General Electric Capital Corporation

AND WHEN RECORDED, MAIL TO:

General Electric Capital Corporation
6130 Stoneridge Mall Road, Suite 300
PLEASANTON, CA 94588
--------------------------------------------------------------------------------
                   (Space above this line for Recorder's use)

                               WAIVER AND CONSENT

         This WAIVER AND CONSENT is made and entered into as of 8/1, 2002, by
and among General Electric Capital Corporation ("Secured Party"), whose address
is 6130 Stoneridge Mall Road, Suite 300, Pleasanton, CA 94588, and VERNON
ASSOCIATES, LLC, a California limited liability company ("Consenting Party"),
whose address is 12540 Beatrice Avenue, Suite 203, Los Angeles, California
90066.

                                    RECITALS

         A. Consenting Party is the owner of certain real property in the City
of Vernon, County of Los Angeles, State of California, described on Exhibit "A"
attached hereto and commonly known as 2727 E. Vernon Avenue, Vernon, California
(the "Premises"). Consenting Party and Debtor (as defined below) are parties to
that certain Standard Industrial/Commercial Single-Tenant Lease - Net, dated
January 1, 2002 (the "Lease"), under which Debtor leases the Premises.

         B. This Waiver and Consent is executed to induce (1) Secured Party to
extend or continue to extend certain credit to OVERHILL FARMS, INC., a Nevada
corporation ("Debtor"), pursuant to that certain Master Security Agreement dated
as of ___________, by and between Debtor and Secured Party (the "Security
Agreement"), and the other loan documents executed in connection therewith, and
as the same may be amended, restated, supplemented, or otherwise modified from
time to time (collectively, the "Agreements"), which Agreements, among other
things, were executed by Debtor for the purpose of granting a first priority
security interest to secure the repayment of all obligations and the performance
of all indebtedness now or hereafter owing by Debtor to Secured Party, of every
kind and description.

         C. This Waiver and Consent does not amend any of the terms of the
Agreements, and reference thereto is made for further particulars.

<PAGE>

         D. By the Agreements, Secured Party shall extend certain credit or has
extended certain credit to Debtor against the security of the personal property
as set forth on Exhibit "B" hereto, which is the personal property subject to
the Secured Party's Security Agreement (collectively, "Property").

         E. The execution and delivery of this Waiver and Consent by Consenting
Party is required by Secured Party as a condition to the continued extension of
credit to Debtor pursuant to the Agreements.

         NOTWITHSTANDING THE TERMS OF THE LEASE, SECURED PARTY AND CONSENTING
PARTY AGREE THAT:

         1. Consenting Party acknowledges that (a) the Lease is in full force
and effect and (b) to Consenting Party's actual knowledge, there is no existing
default under the Lease.

         2. The Property shall be and remain personal property notwithstanding
the manner of its annexation to the Premises, its adaptability to the uses and
purposes for which the Premises are used, or the intentions of the party making
the annexation.

         3. Any rights that Consenting Party may claim to have in and to the
Property, no matter how arising, shall be subordinate to the rights of Secured
Party therein.

         4. Consenting Party consents to the installation of the Property on the
Premises by or on behalf of Secured Party, agrees that Secured Party may do with
the Property any or all of the acts below enumerated, and grants Secured Party a
license, as set forth below, to enter into possession of the Premises, (a) at
any time prior to the expiration, termination or cancellation of the Lease or
abandonment of the Premises by Debtor or (b) subject to the limitations set
forth in paragraph 6 below, during any period in which the Lease has been
terminated or canceled, or after Debtor has abandoned the Premises, to do any or
all of the following with respect to said Property: assemble, have appraised,
display, remove, maintain, prepare for sale or lease, repair, lease, transfer
and/or sell (at one or more public auctions or private sales) to the extent such
action is not in violation of any applicable laws and regulations.

         5. Subject to the limitations set forth in paragraph 6 below, the
waivers and consents herein granted shall continue until such time as all
obligations, indebtedness and expenses (including, without limitation,
reasonable attorneys' fees) of Debtor to Secured Party have been paid in full in
cash and all covenants and conditions as more specifically enumerated in the
Agreements have been fully performed by Debtor.

         6. If the Lease has been terminated or canceled prior to the expiration
thereof, or Debtor has abandoned the Premises, then Secured Party shall only be
permitted to occupy the Premises for the purposes described in paragraph 4 above
for a period of up to thirty (30) days following the date on which Secured Party
received written notice, by overnight courier or by certified mail, return
receipt requested, at the address set forth hereinabove, that the Lease has been
terminated or canceled prior to the expiration thereof, or the Debtor has
abandoned the Premises (the "Removal Period"). The Removal Period shall only
apply to any early termination of the Lease and shall not extend for any reason
beyond the primary term of the Lease. Secured Party shall not be responsible for
rent or, except as provided herein, any other Lease charges during the Removal
Period. Prior to any such entry into the Premises, Secured Party shall provide

                                      -2-
<PAGE>

proof of liability and property insurance coverage required to be carried by
Debtor which satisfies the terms and provisions of the Lease (even though such
Lease may have been terminated or cancelled) and shall pay for all utilities
used on the Premises, which amount shall not exceed fifteen thousand and no/100
dollars ($15,000.00) and other non-reoccurring costs incurred directly related
to Secured Party's occupancy. If any order or injunction is issued or stay
granted that prohibits Secured Party or the Consenting Party from exercising any
of its rights hereunder, (including without limitation, imposition of the
automatic stay by the filing of any bankruptcy or similar proceeding), then, at
the option of Secured Party the Removal Period shall be stayed during the period
of such prohibition until the earlier of (A) the date that the Secured Party
receives a court order lifting such order, stay or injunction against it or the
Secured Party otherwise obtains lawful possession of the Premises or (B) the
date that the Consenting Party receives a court order lifting such order,
injunction or stay against the Consenting Party or the Consenting Party
otherwise obtains lawful possession of the Premises, and in the case of the
satisfaction of the first of (A) or (B), the Removal Period shall continue
thereafter for the number of days remaining in the Removal Period as of the date
of issuance of the order, injunction or stay terminating such prohibition. Any
other extensions of the Removal Period occasioned by a reason other than those
set forth in the immediately preceding sentence (any such extension being
hereinafter referred to as a "Non-Procedural Extension") shall be conditioned
upon the payment of "Rent" (as defined below), limited to a maximum of an
additional thirty days and shall be made only upon the written consent of
Consenting Party, which shall not be unreasonably withheld, delayed or
conditioned. Secured Party will pay to Consenting Party for such Non-Procedural
Extension, "Rent" in an amount equal to forty thousand and no/100 dollars
($40,000.00). During any such Non-Procedural Extension period, Secured Party
shall also pay for all utilities used on the Premises, which amount shall not
exceed fifteen thousand and no/100 dollars and other non-reoccurring costs
incurred directly related to Secured Party's occupancy. Rent shall be due to
Consenting Party on the first day of any such Non-Procedural Extension. Secured
Party shall repair, at its reasonable expense, or provide adequate funds to
compensate Consenting Party from, any physical damage to the Premises occurring
during the Removal Period other than (A) ordinary wear and tear or (B) damage
caused by the acts or omissions of Consenting Party or Debtor or their
respective agents, representatives or invitees. Secured Party shall be
responsible for any third party claims (including without limitation, those of
any employees, agents, contractors or invitees of Secured Party) relating to the
exercise of Secured Party's rights with respect to Debtor or Debtor's Property
located on the Premises. Secured Party shall not (A) be liable for any
diminution in value of the Premises caused by the absence of Property actually
removed or by any necessity of replacing the Property or (B) have any duty or
obligation to remove or dispose of any Property left on the Premises by Debtor.

         7. Consenting Party agrees to give written notice to Secured Party by
certified mail, return receipt requested or overnight courier to the address set
forth above within five (5) days of any default by Debtor of any of the
provisions of the Lease, any termination or cancellation of the Lease or
Debtor's abandonment of the Premises; PROVIDED, that Secured Party shall be
under no obligation to cure any default under the Lease. Debtor also shall give
Secured Party immediate notice of any default by Debtor under the Lease or any
termination or cancellation of the Lease or Debtor's abandonment of the
Premises. No liability shall be incurred by Consenting Party for delay or
failure to give any default notice to Secured Party.

                                      -3-
<PAGE>

         8. Consenting Party unconditionally consents in advance to the granting
of a security interest in the Lease and the Property by Debtor to, and any
foreclosure by Secured Party of its security interest in the Lease and/or the
Property, in each case pursuant to the Agreements, and the purchase thereof by
Secured Party or any other purchaser at any such foreclosure or by any
conveyance or transfer in lieu of foreclosure.

         9. This Waiver and Consent shall be governed and controlled by and
interpreted under the laws of the State of California and shall inure to the
benefit of and be binding upon the successors, heirs, personal representatives
and assigns of Consenting Party and Secured Party.

         10. If either party commences litigation against the other for the
specific performance of this Agreement, for damages for the breach of this
Agreement or otherwise for enforcement of any remedy hereunder, the parties
hereto agree to and hereby do waive any right to a trial by jury and, in the
event of any such commencement of litigation, the prevailing party shall be
entitled to recover from the other party such costs and reasonable attorneys'
fees as may have been incurred, including any and all costs incurred in
enforcing, perfecting and executing such judgment.

         IN WITNESS WHEREOF, this Agreement has been executed and delivered by
the parties hereto as of the day and year first above written.

         SECURED PARTY:

         General Electric Capital Corporation

         By:  /S/ IRIS KWONG
              -------------------------------
                  Its: SR RISK ANALYST
                       ----------------------

         CONSENTING PARTY:

         VERNON ASSOCIATES, LLC,
         a California limited liability company

         By:  /S/ WILLIAM D. FELDMAN
              -------------------------------
                  Its: MANAGING MEMBER
                       ----------------------

                                      -4-
<PAGE>

ACKNOWLEDGED AND AGREED TO:

DEBTOR:

OVERHILL FARMS, INC.,
a Nevada corporation

By:  /S/ ANDY HORVATH
     ------------------------------------
     Its: CHIEF FINANCIAL OFFICER
          -------------------------------

                                      -5-
<PAGE>

                          ACKNOWLEDGMENT OF INSTRUMENTS
                          -----------------------------

STATE OF IDAHO             )
                           )  ss.
COUNTY OF BLAINE           )

         On July 25, 2002 before me, the undersigned notary public in and for
said state, personally appeared William D. Feldman, personally known tome (or
proved tome on the basis of satisfactory evidence) to be the person(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and
that by his/her/their signature(s) on the instrument, the person(s), or the
entity upon behalf of which the person(s) acted, executed the instrument.

         WITNESS my hand and official seal.

Signature: /S/ RENEE C. SCHULZ                                [SEAL]
           ------------------------------
expires 10/8/05

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

STATE OF                            )
                                    )  ss.
COUNTY OF                           )

         On __________________________ before me, the undersigned notary public
in and for said state, personally appeared _________________________, personally
known tome (or proved tome on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the
instrument, the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.

         WITNESS my hand and official seal.

Signature __________________________             (Seal)

                                      -6-
<PAGE>

STATE OF CALIFORNIA        )
                           )  SS.
COUNTY OF LOS ANGELES      )

         On Feb. 22, 2003 before me, the undersigned notary public in and for
said state, personally appeared Andy Horvath, personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person(s) whose name(s)
is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and
that by his/her/their signature(s) on the instrument, the person(s), or the
entity upon behalf of which the person(s) acted, executed the instrument.

         WITNESS my hand and official seal.

Signature /s/ NICOLE FITTS                    NICOLE FITTS
          -----------------------             Commission# 1336945
                                              Notary Public - California
                                              Los Angeles County
                                              My Comm. Expires December 30, 2005

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

STATE OF _______________   )
                           ) SS.
COUNTY OF ____________     )

         On _________________________ before me, the undersigned notary public
in and for said state, personally appeared ________________________, personally
known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the
instrument, the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.

         WITNESS my hand and official seal.

Signature_______________________            (Seal)

                                      -7-
<PAGE>

                                   EXHIBIT "A"
                                   -----------

                                LEGAL DESCRIPTION

PARCEL 1:

THAT PORTION OF THE RANCHO SAN ANTONIO, IN THE CITY OF VERNON, COUNTY OF LOS
ANGELES, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHEAST CORNER OF THE LAND CONVEYED TO NEWMARKET COMPANY BY
DEED RECORDED IN BOOK 6453 PAGE 78, OF DEEDS; THENCE ALONG THE EASTERLY LINE OF
SAID LAND NORTH 09 DEGREES 10 MINUTES 00 SECONDS EAST 400.00 FEET TO THE
SOUTHERLY LINE OF THE LAND CONVEYED TO PACIFIC LIGHT AND POWER CORPORATION BY
DEED RECORDED IN BOOK 6278 PAGE 244, OF DEEDS; THENCE SOUTH 88 DEGREES 08
MINUTES 27 SECONDS WEST 326.46 FEET ALONG SAID SOUTHERLY LINE TO THE EAST LINE
OF THE TRACT OF LAND DESCRIBED IN THE AGREEMENT TO CONVEY FROM THE HUNTINGTON
LAND AND IMPROVEMENT COMPANY TO CEDARLIND AND PERSON COMPANY, RECORDED IN BOOK
5889 PAGE 250, OF DEEDS; THENCE NORTH 0 DEGREES 10 MINUTES 00 SECONDS EAST
154.77 FEET ALONG SAID EAST LINE TO THE SOUTH LINE OF THE LAND CONVEYED TO LOS
ANGELES PACKING COMPANY, BY DEED RECORDED IN BOOK 2445 PAGE 56, OF DEEDS; THENCE
ALONG SAID SOUTH LINE NORTH 89 DEGREES 10 MINUTES 50 SECONDS EAST 264.95 FEET TO
THE SOUTHEAST CORNER OF THE LAND SO CONVEYED TO SAID LOS ANGELES PACKING
COMPANY; THENCE SOUTH 0 DEGREES 10 MINUTES 00 SECONDS WEST 99.93 FEET; THENCE
NORTH 88 DEGREES 08 MINUTES 27 SECONDS EAST 627.55 FEET TO A LINE THAT IS
PARALLEL TO AND DISTANT 40.00 FEET WESTERLY MEASURED AT RIGHT ANGLES FROM THE
WESTERLY LINE OF THE RIGHT OF WAY CONVEYED TO THE SAN PEDRO, LOS ANGELES AND
SALT LAKE RAILWAY COMPANY BY DEED RECORDED IN BOOK 5920 PAGE 221, OF DEEDS;
THENCE ALONG SAID PARALLEL LINE SOUTH 2 DEGREES 21 MINUTES 20 SECONDS EAST
449.76 FEET TO THE NORTHERLY LINE OF VERNON AVENUE, 40.00 FEET WIDE (FORMERLY
FRUITLAND COUNTY ROAD); THENCE SOUTH 88 DEGREES 08 MINUTES 27 SECONDS WEST
585.98 FEET ALONG SAID NORTHERLY LINE TO THE POINT OF BEGINNING.

SAID LAND IS ALSO KNOWN AS PARCEL 1 OF PARCEL MAP NO. 3477, IN THE CITY OF
VERNON, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 52,
PAGE 21 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

EXCEPT THEREFROM THAT PORTION OF SAID LAND GRANTED TO THE CITY OF VERNON, A
MUNICIPAL CORPORATION IN DEED RECORDED FEBRUARY 21, 1991 AS INSTRUMENT NO.
91-255747, OFFICIAL RECORDS.

<PAGE>

PARCEL 2:

AN EASEMENT FOR INGRESS AND EGRESS PURPOSES OVER THAT PORTION OF THE RANCHO SAN
ANTONIO, IN THE CITY OF VERNON, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA,
DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHEAST CORNER OF THAT LAND CONVEYED TO LOS ANGELES PACKING
COMPANY BY DEED RECORDED IN BOOK 2445 PAGE 56, OF DEEDS; THENCE ALONG THE
SOUTHERLY PROLONGATION OF THE EASTERLY LINE OF SAID LAND, SOUTH 0 DEGREES 10
MINUTES 00 SECONDS WEST 49.90 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH
88 DEGREES 08 MINUTES 27 SECONDS EAST 625.35 FEET TO A LINE THAT IS PARALLEL TO
AND DISTANT 40.00 FEET WESTERLY MEASURED AT RIGHT ANGLES FROM THE WESTERLY LINE
OF THE RIGHT OF WAY CONVEYED TO THE SAN PEDRO, LOS ANGELES AND SALT LAKE RAILWAY
COMPANY BY DEED RECORDED IN BOOK 5920 PAGE 221, OF DEEDS; THENCE SOUTH 2 DEGREES
21 MINUTES 20 SECONDS EAST 50.00 FEET ALONG SAID PARALLEL LINE; THENCE SOUTH 88
DEGREES 08 MINUTES 27 SECONDS WEST 627.55 FEET; THENCE NORTH 0 DEGREES 10
MINUTES 00 SECONDS EAST 50.03 FEET TO THE POINT OF BEGINNING.

PARCEL 3:

AN EASEMENT FOR INGRESS AND EGRESS PURPOSE OVER THAT PORTION OF THE RANCHO SAN
ANTONIO, IN THE CITY OF VERNON, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA,
DESCRIBED AS FOLLOWS:

A STRIP OF LAND 40.00 FEET WIDE, THE EASTERLY SIDELINE OF SAID STRIP BEING
DESCRIBED AS FOLLOWS:

BEGINNING AT THE INTERSECTION OF THE WESTERLY LINE OF THE RIGHT OF WAY CONVEYED
TO THE SAN PEDRO, LOS ANGELES AND SALT LAKE RAILWAY COMPANY BY DEED RECORDED IN
BOOK 5920 PAGE 221, OF DEEDS WITH THE NORTHERLY LINE OF VERNON AVENUE 40.00 FEET
WIDE; THENCE NORTH 2 DEGREES 21 MINUTES 20 SECONDS WEST 931.28 FEET TO THE
SOUTHERLY LINE OF THE LAND CONVEYED TO A. B. SALISBURY BY DEED RECORDED IN BOOK
1009 PAGE 5, OF DEEDS.

PARCEL 4:

AN EASEMENT FOR A RAILROAD SPUR TRACK OVER THAT PORTION OF THE RANCHO SAN
ANTONIO, IN THE CITY OF VERNON, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA,
DESCRIBED AS FOLLOWS:

A STRIP OF LAND 40.00 FEET WIDE, THE EASTERLY SIDELINE OF SAID STRIP BEING
DESCRIBED AS FOLLOWS:

BEGINNING AT THE INTERSECTION OF THE WESTERLY LINE OF THE RIGHT OF WAY CONVEYED
TO THE SAN PEDRO, LOS ANGELES AND SALT LAKE RAILWAY COMPANY BY DEED RECORDED IN
BOOK 5920 PAGE 221, OF DEEDS WITH THE NORTHERLY LINE OF VERNON AVENUE 40.00 FEET
WIDE; THENCE NORTH 2 DEGREES 21 MINUTES 20 SECONDS WEST 931.28 FEET TO THE
SOUTHERLY LINE OF THE LAND CONVEYED TO A. B. SALISBURY BY DEED RECORDED IN BOOK
1009 PAGE 5, OF DEEDS.

                                      -2-
<PAGE>

                              CONSENT AND AGREEMENT

         Supplier hereby consents to the above assignment agreement
("Agreement") and agrees not to assert any claims against Lessor or Overhill
Farms, Inc. ("Lessee") inconsistent with such Agreement. Supplier agrees that
the Purchase Orders are hereby amended as necessary to provide as follows;

         (a)      Title to and risk of loss of the Equipment shall pass to
                  Lessor upon Lessee's execution of the Certificate of
                  Acceptance for such Equipment.

         (b)      Supplier hereby waives and discharges any security interest,
                  lien or other encumbrance in or upon the Equipment and agrees
                  to execute such documents as Lessor may request evidencing the
                  release of any such encumbrance and the conveyance of title
                  thereto to Lessor.

         (c)      Supplier agrees that on and after the date this Consent is
                  executed it will not make any addition to or delete any items
                  from the Equipment referred to in the Agreement without the
                  prior written consent of both Lessor and Lessee.

         (d)      Seller represents that the Equipment has been accurately
                  labeled, consistent with the requirements of 40 CFR Part 82
                  Subpart E, with respect to products manufactured with a
                  controlled (ozone-depleting) substance.

         IN WITNESS WHEREOF, the undersigned has caused this Consent to be
executed this 29th day of July, 2002.

                                             SUPPLIER:

                                             Hannibal Material Handling

                                             By: /S/ PATTI GODLEWSKI
                                                 -------------------------------

                                                 Title: CONTROLLER
                                                        ------------------------

<PAGE>

BANCORP.
Star Service Guaranteed [logo]

Equipment Finance, Inc.
7659 SW Mohawk Street
Tualatin, OR 97062
503 797-0200
503 234-4210 fax

July 29, 2002

General Electric Capital Corporation
2400 East Katella Avenue
Anaheim, California 92806

Re: Master Lease Agreement between General Electric Capital Corporation ("GE
Capital") and Overhill Farms ("Overhill") dated as of 8/1, 2002 and Schedule No
3 (the "Lease") with respect to the following equipment (the "Equipment"):

Four (4) Frigoscandia Refrigeration System Freezers Model GCM106-10-29-46 WE CR,
and One (1) Frigoscandia Refrigeration System Model FB 940 ACPT; and One (1)
Chester-Jensen Chiller B-12-OT-12-32

To Whom It May Concern:

In consideration of, and in order to induce you to enter into, the Lease, the
undersigned represents, warrants and covenants:

1. Title to the Equipment is held by U.S. Bancorp Equipment Finance, Inc. f/k/a
U.S. Bancorp Leasing & Financial ("US Bancorp"). The Equipment is used and had
previously been leased by Scandia Leasing Company to Console Foods Corporation
pursuant to a written Equipment Lease and Lease Schedule dated July 27, 1998
(the "Prior Lease"). US Bancorp acquired the Equipment by taking an assignment
of the Prior Lease by Assignment dated November 30, 1998.

2. US Bancorp filed a state court action against Console Foods based upon a
breach of the obligations due under the Prior Lease. US Bancorp thereafter
entered into a Stipulation to Judgment with Console Foods in the state court
action, which stipulation provided in pertinent part that the Prior Lease was a
true finance lease subject to a purchase option equal to the greater of the fair
market value of the Equipment or five percent (5%) of the total Equipment Cost.
Console Foods defaulted under the terms of the state court stipulation to
judgment and in or about September, 1999 a Judgment Pursuant to Stipulation was
entered in the state court action in favor of US Bancorp for both money and
possession of the Equipment. In May, 2002, US Bancorp obtained a writ of
execution for possession of the Equipment and in June, 2002, US Bancorp obtained
an ex parte order in aid of enforcement of judgment. The writ and order
permitted US Bancorp to take possession of the Equipment and exercise its
remedies under the judgment and the Prior Lease.

<PAGE>
General Electric Capital Corporation
08/01/02
Page 2

3. US Bancorp retained the services of Overhill to take possession and store the
Equipment pending disposition. Overhill currently has possession of the
Equipment but title to the Equipment remains in US Bancorp exclusively. Overhill
has not paid any sum for or on account of the Equipment (whether in the form of
a down payment, deposit or partial purchase price) and currently does not have
title to or any interest in the Equipment. Overhill has not used the Equipment
in its trade or business nor exercised any rights of ownership.

4. US Bancorp will deliver to GE Capital a Bill of Sale for the Equipment that
will permit GE Capital to acquire good title to the Equipment free from all
liens and encumbrances whatsoever, copy of which is attached hereto and
incorporated here by this reference.

5. US Bancorp understands that GE Capital is relying upon these representations
and warranties in acquiring the Equipment and entering into the Lease with
Overhill and would not acquire the Equipment nor enter into the Lease without
these representations and warranties.

6. US Bancorp does hereby indemnify and hold harmless GE Capital for any loss,
liability or expense arising from the breach by such party of any of the
foregoing representations, warranties and agreements.

U.S. Bancorp Equipment Finance, Inc.

By:   /S/ RICK DISTEFANO
      --------------------------------
         Rick DiStefano
         Senior Vice President

cc:  Richard W. Labowe, Esq.

                                      -2-
<PAGE>

                        SECURITY DEPOSIT PLEDGE AGREEMENT
                                     (Lease)

This Security Deposit Pledge Agreement (this "Agreement") is made and entered
into as of the eighteenth day of July, 2002 by and between Overhill Farms, Inc.
a Nevada corporation with its principal place of business at 2727 E. Veron
Avenue, Vernon, CA 90058 ("Lessee") and General Electric Capital Corporation, a
Delaware corporation, with its principal place of business at 44 Old Ridgebury
Road Danbury, CT 06810 (together with its successors and assigns, if any,
"Lessor").

         In consideration of, and as an inducement for Lessor to lease to Lessee
certain equipment under the Master Lease Agreement, dated as of 8/1/02 (the
"Master Lease Agreement and all Schedules thereto being referred to as the
"Lease"), and to secure the payment and performance of all of Lessee's
obligations under the Lease, Lessee hereby deposits and pledges with Lessor the
sum of Three Hundred Fifty Thousand and 00/100 Dollars ($350,000.00) (the
"Collateral"), such pledge to be upon the terms and conditions set forth below:

         1. Lessee delivers the Collateral to Lessor to secure Lessee's
performance of its obligations under the Lease, including, but not limited to,
the timely payment of Rent;

         2. The Collateral deposited with Lessor will not accrue interest.
Lessor may commingle the Collateral with its other funds.

         3. After any default by Lessee under the Lease and while the same is
continuing, upon, or at any time after said default, Lessor may apply the
Collateral towards the satisfaction of Lessee's obligations under the Lease and
the payment of all costs and expenses incurred by Lessor as a result of such
default, including but not limited to, costs of repossessing equipment and
attorneys' fees. Such application shall not excuse the performance at the time
and in the manner prescribed of any obligation of Lessee or cure a default of
Lessee. Upon the application by Lessor of any amount of the Collateral pursuant
to the terms of this paragraph, Lessee shall be obligated to immediately pay to
Lessor an amount sufficient to cause the Collateral to equal the amount first
set forth above.

         4. Lessor shall have no duty to first commence an action against or
seek recourse from Lessee, in the event of a default under the Lease, before
enforcing the provisions of, and proceedings under the provisions of this
Agreement. The obligations of Lessee under this Agreement shall be absolute and
unconditional and shall remain in full force and effect without regard to, and
shall not be released or discharged or in any way affected by:

         (a)      any amendment or modification of or supplement to the Lease;

<PAGE>

         (b)      any exercise or non-exercise of any right, remedy or privilege
                  under or in respect to this Agreement, the Lease, or any other
                  instrument provided for in the Lease, or any waiver, consent,
                  explanation, indulgence or actions or inaction with respect to
                  any such instrument; or

         (c)      any bankruptcy, insolvency, reorganization, arrangement,
                  readjustment, composition, liquidation or similar proceeding
                  of Lessee.

         5. Upon the termination of the Lease and the satisfaction of all of the
obligations of Lessee thereunder, Lessor shall deliver to Lessee the Collateral
(less any portion of same cashed, sold, assigned or delivered pursuant to and
under the conditions specified in paragraph 3 hereof), and this Agreement shall
thereupon be without further effect.

         6. Lessor may, without the consent of Lessee, assign this Agreement.
Lessee agrees that if Lessee receives written notice of an assignment from
Lessor, Lessee will pay all amounts due hereunder to such assignee or as
instructed by Lessor. Lessee also agrees to confirm in writing receipt of the
notice of assignment as may be reasonably requested by assignee. Lessee hereby
waives and agrees not to assert against any such assignee any defense, set-off,
recoupment claim or counterclaim which Lessee has or may at any time have
against Lessor for any reason whatsoever.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date fast above written.

LESSOR:                                       LESSEE:

General Electric Capital Corporation          Overhill Farms, Inc.

By: /S/ IRIS KWONG                            By  /S/ RICHARD A. HORVATH
    --------------------------------              ------------------------------
Name:  IRIS KWONG                             Name: RICHARD A. HORVATH
    --------------------------------              ------------------------------
Title:  SR RISK ANALYST                       Title:  CFO
    --------------------------------              ------------------------------

                                      -2-
<PAGE>

                        SECURITY DEPOSIT PLEDGE AGREEMENT
                                     (Lease)

         This Security Deposit Pledge Agreement (this "Agreement") is made and
entered into as of the eighteenth day of July, 2002 by and between Overhill
Farms, Inc. a Nevada corporation with its principal place of business at 2727 E.
Vernon Avenue , Vernon, CA 90058 ("Lessee") and General Electric Capital
Corporation, a Delaware corporation, with its principal place of business at 44
Old Ridgebury Road Danbury, CT 06810 (together with its successors and assigns,
if any, "Lessor").

         In consideration of, and as an inducement for Lessor to lease to Lessee
certain equipment under the Master Lease Agreement, dated as of 8/1/02 (the
"Master Lease Agreement and all Schedules thereto being referred to as the
"Lease"), and to secure the payment and performance of all of Lessee's
obligations under the Lease, Lessee hereby deposits and pledges with Lessor the
sum of Forty-Five Thousand and 00/100 Dollars ($45,000.00) (the "Collateral"),
such pledge to be upon the terms and conditions set forth below:

         1. Lessee delivers the Collateral to Lessor to secure Lessee's
performance of its obligations under the Lease, including, but not limited to,
the timely payment of Rent;

         2. The Collateral deposited with Lessor will not accrue interest.
Lessor may commingle the Collateral with its other funds.

         3. After any default by Lessee under the Lease and while the same is
continuing, upon, or at any time after said default, Lessor may apply the
Collateral towards the satisfaction of Lessee's obligations under the Lease and
the payment of all costs and expenses incurred by Lessor as a result of such
default, including but not limited to, costs of repossessing equipment and
attorneys' fees. Such application shall not excuse the performance at the time
and in the manner prescribed of any obligation of Lessee or cure a default of
Lessee. Upon the application by Lessor of any amount of the Collateral pursuant
to the terms of this paragraph, Lessee shall be obligated to immediately pay to
Lessor an amount sufficient to cause the Collateral to equal the amount first
set forth above.

         4. Lessor shall have no duty to first commence an action against or
seek recourse from Lessee, in the event of a default under the Lease, before
enforcing the provisions of, and proceedings under the provisions of this
Agreement. The obligations of Lessee under this Agreement shall be absolute and
unconditional and shall remain in full force and effect without regard to, and
shall not be released or discharged or in any way affected by:

         (a)      any amendment or modification of or supplement to the Lease;

         (b)      any exercise or non-exercise of any right, remedy or privilege
                  under or in respect to this Agreement, die Lease, or any other
                  instrument provided for in the Lease, or any waiver, consent,
                  explanation, indulgence or actions or inaction with respect to
                  any such instrument; or

<PAGE>

         (c)      any bankruptcy. insolvency, reorganization, arrangement,
                  readjustment, composition, liquidation or similar proceeding
                  of Lessee.

         5. Upon the termination of the Lease and the satisfaction of all of the
obligations of Lessee thereunder, Lessor shall deliver to Lessee the Collateral
(less any portion of same cashed, sold, assigned or delivered pursuant to and
under the conditions specified in paragraph 3 hereof), and this Agreement shall
thereupon be without further effect.

         6. Lessor may, without the consent of Lessee, assign this Agreement.
Lessee agrees that if Lessee receives written notice of an assignment from
Lessor. Lessee will pay all amounts due hereunder to such assignee or as
instructed by Lessor. Lessee also agrees to confirm in writing receipt of the
notice of assignment as may be reasonably requested by assignee. Lessee hereby
waives and agrees not to assert against any such assignee any defense, set-off,
recoupment claim or counterclaim which Lessee has or may at any time have
against Lessor for any reason whatsoever.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date first above written.

LESSOR:                                      LESSEE:

General Electric Capital Corporation         Overhill Farms, Inc.

By: /S/ IRIS KWONG                           By  /S/ RICHARD A. HORVATH
    --------------------------------              ------------------------------
Name:  IRIS KWONG                            Name: RICHARD A. HORVATH
    --------------------------------              ------------------------------
Title:  SR RISK ANALYST                      Title:  CFO
    --------------------------------              ------------------------------

                                      -2-
<PAGE>

<TABLE>

                                    Lessee's
                               Present Value Test

Prepared Jul-25-2002 1005 by ...............................................................[___]
Parameter filename .............................Overhill Farms bonus dep advance book 3.4mm 08-02
Parameter path.................................................c:\docume-I\sschaid\locals-1\temp\
<CAPTION>

                               present                   present
                                 value                     value
                            factors at                factors at
                            incremental                 implicit                                 present
                             borrowing                  interest                      cost          value       threshold
                                  rate      present         rate     present            on             of              at
         date         rent    7.00000%        value     8.67094%       value      delivery           cost        90.0000%
         ----         ----    --------        -----     --------       -----      --------           ----        --------
<S>             <C>           <C>        <C>           <C>        <C>         <C>            <C>             <C>
  Jul-25-02           0.00    1.000000         0.00     1.000000        0.00  3,419,349.90   3,419,349.90    3,077,414,91
  Aug-01-02     173,533.00    0.998835   173,330.78     0.998557  173,282.58          0.00           0.00            0.00
  Sep-01-02     150,000.00    0.993042   148,956.29    0.99.1393  148,709.00          0.00           0.00            0.00
  Oct-01-02     150,000/00    0.987283   148,092.42     0.984281  147,642.17          0.00           0.00            0.00
  Nov-01-02     150,000,00    0.981557   147,233.56     0.977220  146,582.99          0.00           0.00            0.00
  Dec-01-02     150,000.00    0.975865   146,379.68     0.970209  145,531.42          0.00           0.00            0.00
              ------------              -----------              -----------  ------------   ------------    ------------
                773,533.00               763,992.73               761.748.16  3,419,349.90   3,419,349.90    3,077,414.91

  Jan-01-03     150,000.00    0.970205   145,530.75     0.963249  144,487.38          0.00           0.00            0.00
  Feb-01-03     150,000.00    0.964578   144,686.74     0.956339  143,450.84          0.00           0.00            0.00
  Mar-01-03     150,000.00    0.958984   143,847.63     0.949478  142,421.73          0.00           0.00            0.00
  Apr-01-03     150,000.00    0.953423   143,013.38     0.942667  141,400.00          0.00           0.00            0.00
  May-01-03     150,000.00    0.947893   142,183.98     0.935904  140,385.61          0.00           0.00            0.00
 June-01-03     150,000.00    0.942396   141,359.38     0.929190  139,378.49          0.00           0.00            0.00
  Jul-01-03     150,000.00    0.936930   140,539.57     0.922524  138,378.60          0.00           0.00            0.00
  Aug-01-03     150,000.00    0.931497   139,724.51     0.915906  137,385.88          0.00           0.00            0.00
  Sep-01-03     150,000.00    0.926095   138,914.18     0.909335  136,400.28          0.00           0.00            0.00
  Oct-01-03     150,000.00    0.920724   138,108.54     0.902812  135,421.75          0.00           0.00            0.00
  Nov-01-03     150,000.00    0.915384   137,307.58     0.896335  143,450.24          0.00           0.00            0.00
  Dec-01-03     150,000.00    0,910075   136,511.27     0.889905  133,485.70          0.00           0.00            0.00
              ------------              -----------              -----------  ------------   ------------    ------------
              1,800,000.00             1,691,727.50             1,667,046.51          0.00           0.00            0.00

  Jan-01-04     150,000.00    0.904797   135,719.57     0.883521  132,528.09          0.00           0.00            0.00
  Feb-01-04     100,000.00    0.899550    89,954.97     0.877182   87,718.22          0.00           0.00            0.00
  Mar-01-04     100,000.00    0.894333    89,433.28     0.870889   87,088.94          0.00           0.00            0.00
  Apr-01-04     100,000.00    0.889146    88,914.61     0.864642   86,464.17          0.00           0.00            0.00
  May-01-04       6,628.29    0.883990     5,859.34     0.858439    5,689.98          0.00           0.00            0.00
 June-01-04       6,628.29    0,878863     5,825.36     0.852280    5,649.16          0.00           0.00            0.00
  Jul-01-04       6,628.29    0.873766     5,791.57     0.846166    5,608.63          0.00           0.00            0.00
  Aug-01-04       6,628.29    0.868698     5,757.99     0.840096    5,568.40          0.00           0.00            0.00
  Sep-01-04       6,628.29    0.863660     5,724.59     0.834069    5,528.45          0.00           0.00            0.00
  Oct-01-04       6,628.29    0.858652     5,691.39     0.828085    5,488.79          0.00           0.00            0.00
  Nov-01-04       6,628.29    0.853672     5,658.38     0.822145    5,449.41          0.00           0.00            0.00
  Dec-01-04       6,628.29    0.848721     5,625.57     0.816247    5,410.32          0.00           0.00            0.00
              ------------              -----------              -----------  ------------   ------------    ------------
                503,026.32               449,956.63               438,192.57          0.00           0.00            0.00

  Jan-01-05       6,628.29    0.843799     5,592.94     0.810391    5,371.51          0.00           0.00            0.00
  Feb-01-05       6,628.29    0.838905     5,560.51     0.804577    5,332.97          0.00           0.00            0.00
  Mar-01-05       6,628.29    0.834040     5,528.26     0.798805    5,294.71          0.00           0.00            0.00
  Apr-01-05       6,628.29    0.829203     5,496.20     0.793075    5,256.73          0.00           0.00            0.00
  May-01-05       6,628.29    0.824394     5,464.32     0.787385    5,219.02          0.00           0.00            0.00
 June-01-05       6,628.29    0.819613     5,432.63     0.781737    5,181.58          0.00           0.00            0.00
  Jul-01-05       6,628.29    0.814860     5,401.13     0.776129    5,144.41          0.00           0.00            0.00
  Aug-01-05       6,628.29    0.810134     5,369.80     0.770561    5,107.50          0.00           0.00            0.00
  Sep-01-05       6,628.29    0.805435     5,338.66     0.765033    5,070.86          0.00           0.00            0.00
  Oct-01-05       6,628.29    0.800764     5,307.70     0.759544    5,034.48          0.00           0.00            0.00
  Nov-01-05       6,628.29    0.796120     5,276.92     0.754095    4,998.36          0.00           0.00            0.00
  Dec-01-05       6,628.29    0.791503     5,246.31     0.748686    4,962.51          0.00           0.00            0.00
              ------------              -----------              -----------  ------------   ------------    ------------
                 79,539.48                65,015.38                61,974.63          0.00           0.00            0.00

<PAGE>
General Electric Capital Corporation
08/01/02
Page 2

                               present                   present
                                 value                     value
                            factors at                factors at
                            incremental                 implicit                                 present
                             borrowing                  interest                      cost          value       threshold
                                  rate      present         rate     present            on             of              at
         date         rent    7.00000%        value     8.67094%       value      delivery           cost        90.0000%
         ----         ----    --------        -----     --------       -----      --------           ----        --------

  Jan-01-06       6,628.29    0.786913     5,216.89     0.743315    4,926.90          0.00           0.00            0.00
  Feb-01-06       6,628.29    0.782349     5,185,64     0.737982    4.891.56          0.00           0.00            0.00
  Mar-01-06       6,628.29    0.777812     5,155.56     0.732088    4,856.47          0.00           0.00            0.00
  Apr-01-06       6,628.29    0.773301     5,125.66     0.727432    4,821.63          0.00           0.00            0.00
  May-01-06       6,628.29    0.768816     5,095.94     0.722213    4,787.04          0.00           0.00            0.00
 June-01-06       6,628.29    0.764357     5,066.38     0.717032    4,752.70          0.00           0.00            0.00
  Jul-01-06       6,628.29    0.759925     5,037.00     0.711888    4,718.60          0.00           0.00            0.00
  Aug-01-06       6,628.29    0.755517     5,007.79     0.706781    4,684.75          0.00           0.00            0.00
  Sep-01-06       6,628.29    0.751136     4,978.75     0.701711    4,651.14          0.00           0.00            0.00
  Oct-01-06       6,628.29    0.746780     4,949.87     0.696677    4,617.77          0.00           0.00            0.00
  Nov-01-06       6,628.29    0.742449     4,921.16     0.691679    4,584.65          0.00           0.00            0.00
  Dec-01-06       6,628.29    0.738143     4,892.62     0.686717    4,551.76          0.00           0.00            0.00
              ------------              -----------              -----------  ------------   ------------    ------------
                 79,539.48                60,632.26                56,844.96          0.00           0.00            0.00

  Jan-01-07       6,628.29    0.733862     4,864.25     0.681790    4,519.10          0.00           0.00            0.00
  Feb-01-07       6,628.29    0.729606     4,836.04     0.676899    4,486.68          0.00           0.00            0.00
  Mar-01-07       6,628.29    0.725375     4,807.99     0.672043    4,454.50          0.00           0.00            0.00
  Apr-01-07       6,628.29    0.721168     4,780.11     0.667222    4,422.54          0.00           0.00            0.00
  May-01-07       6,628.29    0/716985     4,752.39     0.662435    4,390.81          0.00           0.00            0.00
 June-01-07       6,628.29    0.712827     4,724.82     0.657683    4,359.31          0.00           0.00            0.00
  Jul-01-07       6,628.29    0.708693     4,697.42     0.652965    4,328.04          0.00           0.00            0.00
              ------------              -----------              -----------  ------------   ------------    ------------
                 46,398.03                33,463.02                30,960.98          0.00           0.00            0.00

    TOTAL     3,282,036.31             3,064,787.52             3,016,767.82  3,419,349.90   3,419,349.90    3,077,414.91
              ============             ============             ============  ============   ============    ============
</TABLE>

                                      -2-
<PAGE>

                                   EXHIBIT "A"

RECORDING REQUESTED BY:

General Electric Capital Corporation

AND WHEN RECORDED, MAIL TO:

General Electric Capital Corporation
6130 Stoneridge Mall Road, Suite 300
PLEASANTON, CA 94588
--------------------------------------------------------------------------------
                   (Space above this line for Recorder's use)

                               WAIVER AND CONSENT

         This WAIVER AND CONSENT is made and entered into as of 8/1, 2002, by
and among General Electric Capital Corporation ("Secured Party"), whose address
is 6130 Stoneridge Mall Road, Suite 300, Pleasanton, CA 94588, and VERNON
ASSOCIATES, LLC, a California limited liability company ("Consenting Party"),
whose address is 12540 Beatrice Avenue, Suite 203, Los Angeles, California
90066.

                                    RECITALS

         A. Consenting Party is the owner of certain real property in the City
of Vernon, County of Los Angeles, State of California, described on Exhibit "A"
attached hereto and commonly known as 2727 E. Vernon Avenue, Vernon, California
(the "Premises"). Consenting Party and Debtor (as defined below) are parties to
that certain Standard Industrial/Commercial Single-Tenant Lease - Net, dated
January 1, 2002 (the "Lease"), under which Debtor leases the Premises.

         B. This Waiver and Consent is executed to induce (1) Secured Party to
extend or continue to extend certain credit to OVERHILL FARMS, INC., a Nevada
corporation ("Debtor"), pursuant to that certain Master Security Agreement dated
as of ___________, by and between Debtor and Secured Party (the "Security
Agreement"), and the other loan documents executed in connection therewith, and
as the same may be amended, restated, supplemented, or otherwise modified from
time to time (collectively, the "Agreements"), which Agreements, among other
things, were executed by Debtor for the purpose of granting a first priority
security interest to secure the repayment of all obligations and the performance
of all indebtedness now or hereafter owing by Debtor to Secured Party, of every
kind and description.

         C. This Waiver and Consent does not amend any of the terms of the
Agreements, and reference thereto is made for further particulars.

         D. By the Agreements, Secured Party shall extend certain credit or has
extended certain credit to Debtor against the security of the personal property
as set forth on Exhibit "B" hereto, which is the personal property subject to
the Secured Party's Security Agreement (collectively, "Property").

<PAGE>

         E. The execution and delivery of this Waiver and Consent by Consenting
Party is required by Secured Party as a condition to the continued extension of
credit to Debtor pursuant to the Agreements.

         NOTWITHSTANDING THE TERMS OF THE LEASE, SECURED PARTY AND CONSENTING
PARTY AGREE THAT:

         1. Consenting Party acknowledges that (a) the Lease is in full force
and effect and (b) to Consenting Party's actual knowledge, there is no existing
default under the Lease.

         2. The Property shall be and remain personal property notwithstanding
the manner of its annexation to the Premises, its adaptability to the uses and
purposes for which the Premises are used, or the intentions of the party making
the annexation.

         3. Any rights that Consenting Party may claim to have in and to the
Property, no matter how arising, shall be subordinate to the rights of Secured
Party therein.

         4. Consenting Party consents to the installation of the Property on the
Premises by or on behalf of Secured Party, agrees that Secured Party may do with
the Property any or all of the acts below enumerated, and grants Secured Party a
license, as set forth below, to enter into possession of the Premises, (a) at
any time prior to the expiration, termination or cancellation of the Lease or
abandonment of the Premises by Debtor or (b) subject to the limitations set
forth in paragraph 6 below, during any period in which the Lease has been
terminated or canceled, or after Debtor has abandoned the Premises, to do any or
all of the following with respect to said Property: assemble, have appraised,
display, remove, maintain, prepare for sale or lease, repair, lease, transfer
and/or sell (at one or more public auctions or private sales) to the extent such
action is not in violation of any applicable laws and regulations.

         5. Subject to the limitations set forth in paragraph 6 below, the
waivers and consents herein granted shall continue until such time as all
obligations, indebtedness and expenses (including, without limitation,
reasonable attorneys' fees) of Debtor to Secured Party have been paid in full in
cash and all covenants and conditions as more specifically enumerated in the
Agreements have been fully performed by Debtor.

         6. If the Lease has been terminated or canceled prior to the expiration
thereof, or Debtor has abandoned the Premises, then Secured Party shall only be
permitted to occupy the Premises for the purposes described in paragraph 4 above
for a period of up to thirty (30) days following the date on which Secured Party
received written notice, by overnight courier or by certified mail, return
receipt requested, at the address set forth hereinabove, that the Lease has been
terminated or canceled prior to the expiration thereof, or the Debtor has
abandoned the Premises (the "Removal Period"). The Removal Period shall only
apply to any early termination of the Lease and shall not extend for any reason
beyond the primary term of the Lease. Secured Party shall not be responsible for
rent or, except as provided herein, any other Lease charges during the Removal
Period. Prior to any such entry into the Premises, Secured Party shall provide
proof of liability and property insurance coverage required to be carried by

                                      -2-
<PAGE>

Debtor which satisfies the terms and provisions of the Lease (even though such
Lease may have been terminated or cancelled) and shall pay for all utilities
used on the Premises, which amount shall not exceed fifteen thousand and no/100
dollars ($15,000.00) and other non-reoccurring costs incurred directly related
to Secured Party's occupancy. If any order or injunction is issued or stay
granted that prohibits Secured Party or the Consenting Party from exercising any
of its rights hereunder, (including without limitation, imposition of the
automatic stay by the filing of any bankruptcy or similar proceeding), then, at
the option of Secured Party the Removal Period shall be stayed during the period
of such prohibition until the earlier of (A) the date that the Secured Party
receives a court order lifting such order, stay or injunction against it or the
Secured Party otherwise obtains lawful possession of the Premises or (B) the
date that the Consenting Party receives a court order lifting such order,
injunction or stay against the Consenting Party or the Consenting Party
otherwise obtains lawful possession of the Premises, and in the case of the
satisfaction of the first of (A) or (B), the Removal Period shall continue
thereafter for the number of days remaining in the Removal Period as of the date
of issuance of the order, injunction or stay terminating such prohibition. Any
other extensions of the Removal Period occasioned by a reason other than those
set forth in the immediately preceding sentence (any such extension being
hereinafter referred to as a "Non-Procedural Extension") shall be conditioned
upon the payment of "Rent" (as defined below), limited to a maximum of an
additional thirty days and shall be made only upon the written consent of
Consenting Party, which shall not be unreasonably withheld, delayed or
conditioned. Secured Party will pay to Consenting Party for such Non-Procedural
Extension, "Rent" in an amount equal to forty thousand and no/100 dollars
($40,000.00). During any such Non-Procedural Extension period, Secured Party
shall also pay for all utilities used on the Premises, which amount shall not
exceed fifteen thousand and no/100 dollars and other non-reoccurring costs
incurred directly related to Secured Party's occupancy. Rent shall be due to
Consenting Party on the first day of any such Non-Procedural Extension. Secured
Party shall repair, at its reasonable expense, or provide adequate funds to
compensate Consenting Party from, any physical damage to the Premises occurring
during the Removal Period other than (A) ordinary wear and tear or (B) damage
caused by the acts or omissions of Consenting Party or Debtor or their
respective agents, representatives or invitees. Secured Party shall be
responsible for any third party claims (including without limitation, those of
any employees, agents, contractors or invitees of Secured Party) relating to the
exercise of Secured Party's rights with respect to Debtor or Debtor's Property
located on the Premises. Secured Party shall not (A) be liable for any
diminution in value of the Premises caused by the absence of Property actually
removed or by any necessity of replacing the Property or (B) have any duty or
obligation to remove or dispose of any Property left on the Premises by Debtor.

         7. Consenting Party agrees to give written notice to Secured Party by
certified mail, return receipt requested or overnight courier to the address set
forth above within five (5) days of any default by Debtor of any of the
provisions of the Lease, any termination or cancellation of the Lease or
Debtor's abandonment of the Premises; provided, that Secured Party shall be
under no obligation to cure any default under the Lease. Debtor also shall give
Secured Party immediate notice of any default by Debtor under the Lease or any
termination or cancellation of the Lease or Debtor's abandonment of the
Premises. No liability shall be incurred by Consenting Party for delay or
failure to give any default notice to Secured Party.

                                      -3-
<PAGE>

         8. Consenting Party unconditionally consents in advance to the granting
of a security interest in the Lease and the Property by Debtor to, and any
foreclosure by Secured Party of its security interest in the Lease and/or the
Property, in each case pursuant to the Agreements, and the purchase thereof by
Secured Party or any other purchaser at any such foreclosure or by any
conveyance or transfer in lieu of foreclosure.

         9. This Waiver and Consent shall be governed and controlled by and
interpreted under the laws of the State of California and shall inure to the
benefit of and be binding upon the successors, heirs, personal representatives
and assigns of Consenting Party and Secured Party.

         10. If either party commences litigation against the other for the
specific performance of this Agreement, for damages for the breach of this
Agreement or otherwise for enforcement of any remedy hereunder, the parties
hereto agree to and hereby do waive any right to a trial by jury and, in the
event of any such commencement of litigation, the prevailing party shall be
entitled to recover from the other party such costs and reasonable attorneys'
fees as may have been incurred, including any and all costs incurred in
enforcing, perfecting and executing such judgment.

         IN WITNESS WHEREOF, this Agreement has been executed and delivered by
the parties hereto as of the day and year first above written.

         SECURED PARTY:

         General Electric Capital Corporation By:

         By:   IRIS KWONG
               --------------------------------
            Its: SR RISK ANALYST
                 ------------------------------

         CONSENTING PARTY:

         VERNON ASSOCIATES, LLC,
         a California limited liability company

         By:  /S/ WILLIAM D. FELDMAN
              ---------------------------------
            Its:  MANAGING MEMBER
                  -----------------------------

                                      -4-
<PAGE>

         ACKNOWLEDGED AND AGREED TO:

         DEBTOR:

         OVERHILL FARMS, INC.,
         a Nevada corporation

         By: /S/ ANDY HORVATH
             --------------------------------
            Its: CHIEF FINANCIAL OFFICER
                 ----------------------------

                                      -5-
<PAGE>

STATE OF CALIFORNIA        )
                           )  SS.
COUNTY OF LOS ANGELES      )

         On Feb. 22, 2003 before me, the undersigned notary public in and for
said state, personally appeared Andy Horvath, personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person(s) whose name(s)
is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and
that by his/her/their signatures) on the instrument, the person(s), or the
entity upon behalf of which the person(s) acted, executed the instrument.

         WITNESS my hand and official seal.

                                                  NICOLE FITTS
                                                  Commission #1338945
Signature  /S/ NICOLE FITTS           (Seal)      Notary Public - California
           ------------------------               Los Angeles County
                                                  My Comm. Expires Dec. 30, 2005

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

STATE OF ___________________        )
                                    )  SS.
COUNTY OF _________________         )

         On ____________________ before me, the undersigned notary public in and
for said state, personally appeared ______________________, personally known to
me (or proved to me on the basis of satisfactory evidence) to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/her/their authorized capacity(ies),
and that by his/her/their signatures) on the instrument, the person(s), or the
entity upon behalf of which the person(s) acted, executed the instrument.

         WITNESS my hand and official seal.

Signature  ______________________   (Seal)

                                      -6-
<PAGE>

                          ACKNOWLEDGMENT OF INSTRUMENTS
                          -----------------------------

STATE OF IDAHO        )
                      ) SS.
COUNTY OF BLAINE      )

         On July 25, 2002 before me, the undersigned notary public in and for
said state, personally appeared William D. Feldman, personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and
that by his/her/their signature(s) on the instrument, the person(s), or the
entity upon behalf of which the person(s) acted, executed the instrument.

         WITNESS my hand and official seal.

Signature /S RENEE C. SCHULZ                                  (Seal)
          -------------------------------
Expires 10/18/05

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

STATE OF _____________     )
                           ) SS.
COUNTY OF ___________      )

         On ___________________________ before me, the undersigned notary public
in and for said state, personally appeared _______________, personally known to
me (or proved to me on the basis of satisfactory evidence) to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/her/their authorized capacity(ies),
and that by his/her/their signature(s) on the instrument, the person(s), or the
entity upon behalf of which the person(s) acted, executed the instrument.

         WITNESS my hand and official seal.

Signature ____________________________      (Seal)

                                      -7-
<PAGE>

                                   EXHIBIT "A"

                                LEGAL DESCRIPTION

PARCEL 1:

THAT PORTION OF THE RANCHO SAN ANTONIO, IN THE CITY OF VERNON, COUNTY OF LOS
ANGELES, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHEAST CORNER OF THE LAND CONVEYED TO NEWMARKET COMPANY BY
DEED RECORDED IN BOOK 6453 PAGE 78, OF DEEDS; THENCE ALONG THE EASTERLY LINE OF
SAID LAND NORTH 09 DEGREES 10 MINUTES 00 SECONDS EAST 400.00 FEET TO THE
SOUTHERLY LINE OF THE LAND CONVEYED TO PACIFIC LIGHT AND POWER CORPORATION BY
DEED RECORDED IN BOOK 6278 PAGE 244, OF DEEDS; THENCE SOUTH 88 DEGREES 08
MINUTES 27 SECONDS WEST 326.46 FEET ALONG SAID SOUTHERLY LINE TO THE EAST LINE
OF THE TRACT OF LAND DESCRIBED IN THE AGREEMENT TO CONVEY FROM THE HUNTINGTON
LAND AND IMPROVEMENT COMPANY TO CEDARLIND AND PERSON COMPANY, RECORDED IN BOOK
5889 PAGE 250, OF DEEDS; THENCE NORTH 0 DEGREES 10 MINUTES 00 SECONDS EAST
154.77 FEET ALONG SAID EAST LINE TO THE SOUTH LINE OF THE LAND CONVEYED TO LOS
ANGELES PACKING COMPANY, BY DEED RECORDED IN BOOK 2445 PAGE 56, OF DEEDS; THENCE
ALONG SAID SOUTH LINE NORTH 89 DEGREES 10 MINUTES 50 SECONDS EAST 264.95 FEET TO
THE SOUTHEAST CORNER OF THE LAND SO CONVEYED TO SAID LOS ANGELES PACKING
COMPANY; THENCE SOUTH 0 DEGREES 10 MINUTES 00 SECONDS WEST 99.93 FEET; THENCE
NORTH 88 DEGREES 08 MINUTES 27 SECONDS EAST 627.55 FEET TO A LINE THAT IS
PARALLEL TO AND DISTANT 40.00 FEET WESTERLY MEASURED AT RIGHT ANGLES FROM THE
WESTERLY LINE OF THE RIGHT OF WAY CONVEYED TO THE SAN PEDRO, LOS ANGELES AND
SALT LAKE RAILWAY COMPANY BY DEED RECORDED IN BOOK 5920 PAGE 221, OF DEEDS;
THENCE ALONG SAID PARALLEL LINE SOUTH 2 DEGREES 21 MINUTES 20 SECONDS EAST
449.76 FEET TO THE NORTHERLY LINE OF VERNON AVENUE, 40.00 FEET WIDE (FORMERLY
FRUITLAND COUNTY ROAD); THENCE SOUTH 88 DEGREES 08 MINUTES 27 SECONDS WEST
585.98 FEET ALONG SAID NORTHERLY LINE TO THE POINT OF BEGINNING.

SAID LAND IS ALSO KNOWN AS PARCEL 1 OF PARCEL MAP NO. 3477, IN THE CITY OF
VERNON, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 52,
PAGE 21 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

EXCEPT THEREFROM THAT PORTION OF SAID LAND GRANTED TO THE CITY OF VERNON, A
MUNICIPAL CORPORATION IN DEED RECORDED FEBRUARY 21, 1991 AS INSTRUMENT NO.
91-255747, OFFICIAL RECORDS.

<PAGE>

PARCEL 2:

AN EASEMENT FOR INGRESS AND EGRESS PURPOSES OVER THAT PORTION OF THE RANCHO SAN
ANTONIO, IN THE CITY OF VERNON, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA,
DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHEAST CORNER OF THAT LAND CONVEYED TO LOS ANGELES PACKING
COMPANY BY DEED RECORDED IN BOOK 2445 PAGE 56, OF DEEDS; THENCE ALONG THE
SOUTHERLY PROLONGATION OF THE EASTERLY LINE OF SAID LAND, SOUTH 0 DEGREES 10
MINUTES 00 SECONDS WEST 49.90 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH
88 DEGREES 08 MINUTES 27 SECONDS EAST 625.35 FEET TO A LINE THAT IS PARALLEL TO
AND DISTANT 40.00 FEET WESTERLY MEASURED AT RIGHT ANGLES FROM THE WESTERLY LINE
OF THE RIGHT OF WAY CONVEYED TO THE SAN PEDRO, LOS ANGELES AND SALT LAKE RAILWAY
COMPANY BY DEED RECORDED IN BOOK 5920 PAGE 221, OF DEEDS; THENCE SOUTH 2 DEGREES
21 MINUTES 20 SECONDS EAST 50.00 FEET ALONG SAID PARALLEL LINE; THENCE SOUTH 88
DEGREES 08 MINUTES 27 SECONDS WEST 627.55 FEET; THENCE NORTH 0 DEGREES 10
MINUTES 00 SECONDS EAST 50.03 FEET TO THE POINT OF BEGINNING.

PARCEL 3:

AN EASEMENT FOR INGRESS AND EGRESS PURPOSE OVER THAT PORTION OF THE RANCHO SAN
ANTONIO, IN THE CITY OF VERNON, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA,
DESCRIBED AS FOLLOWS:

A STRIP OF LAND 40.00 FEET WIDE, THE EASTERLY SIDELINE OF SAID STRIP BEING
DESCRIBED AS FOLLOWS:

BEGINNING AT THE INTERSECTION OF THE WESTERLY LINE OF THE RIGHT OF WAY CONVEYED
TO THE SAN PEDRO, LOS ANGELES AND SALT LAKE RAILWAY COMPANY BY DEED RECORDED IN
BOOK 5920 PAGE 221, OF DEEDS WITH THE NORTHERLY LINE OF VERNON AVENUE 40.00 FEET
WIDE; THENCE NORTH 2 DEGREES 21 MINUTES 20 SECONDS WEST 931.28 FEET TO THE
SOUTHERLY LINE OF THE LAND CONVEYED TO A. B. SALISBURY BY DEED RECORDED IN BOOK
1009 PAGE 5, OF DEEDS.

PARCEL 4:

AN EASEMENT FOR A RAILROAD SPUR TRACK OVER THAT PORTION OF THE RANCHO SAN
ANTONIO, IN THE CITY OF VERNON, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA,
DESCRIBED AS FOLLOWS:

A STRIP OF LAND 40.00 FEET WIDE, THE EASTERLY SIDELINE OF SAID STRIP BEING
DESCRIBED AS FOLLOWS:

BEGINNING AT THE INTERSECTION OF THE WESTERLY LINE OF THE RIGHT OF WAY CONVEYED
TO THE SAN PEDRO, LOS ANGELES AND SALT LAKE RAILWAY COMPANY BY DEED RECORDED IN
BOOK 5920 PAGE 221, OF DEEDS WITH THE NORTHERLY LINE OF VERNON AVENUE 40.00 FEET
WIDE; THENCE NORTH 2 DEGREES 21 MINUTES 20 SECONDS WEST 931.28 FEET TO THE
SOUTHERLY LINE OF THE LAND CONVEYED TO A. B. SALISBURY BY DEED RECORDED IN BOOK
1009 PAGE 5, OF DEEDS.

                                      -2-<PAGE>

EXHIBIT 10.86
                           CALIFORNIA CHAPTERS OF THE
                SOCIETY OF INDUSTRIAL AND OFFICE REALTORS(R) INC.

                          INDUSTRIAL REAL ESTATE LEASE
                            (SINGLE-TENANT FACILITY)

ARTICLE ONE: BASIC TERMS

         This Article One contains the Basic Terms of this Lease between the
Landlord and Tenant named below. Other Articles, Sections and Paragraphs of the
Lease referred to in this Article One explain and define the Basic Terms and are
to be read in conjunction with the Basic Terms.

         Section 1.01. Date of Lease: April 22, 1994

         Section 1.02 Landlord (include legal entity): Vernon Associates (A
California Partnership)

Address of Landlord: c/o William D. Feldman Associates, 12540 Beatrice St. #203,
Los Angeles, CA 90066

         Section 1.03. Tenant (include legal entity): Ernest Paper Products,
Inc., a California corporation
Address of Tenant: _____________________________________________________________
________________________________________________________________________________

         Section 1.04. Property: (include street address, approximate are
footage and description) 2727 E. Vernon Ave., Vernon, California. A one story
tilt up warehouse building of approx. 147,210 square feet on land including
various access easements as shown of the June 10, 1992 survey by Mollenhauer,
Higashi & Moore attached as Exhibit "A"

         Section 1.05. Lease Term: 10 years 0 months beginning on January 1,
1995 or such other date as is specified in this Lease, and ending on December
31, 2004

         Section 1.06. Permitted Uses: (See Article Five) Sales and distribution
of industrial products and operations related thereto.

         Section 1.07. Tenant's Guarantor. (If none, so state) None

         Section 1.08. Brokers: (See Article Fourteen) (If none, so state)
Landlord's Broker: William D. Feldman & Associates
Tenant's Broker: S. D. Herman Co., Inc.

         Section 1.09. Commission Payable to Landlord's Broker: (See Article
Fourteen) $ Per Agreement

         Section 1.10. Initial Security Deposit: (See Section 3.03) $ 43,832.34

                                                          Initials /s/ illegible
                                                                   /s/ illegible

<PAGE>

         Section 1.11. Vehicle Parking Spaces Allocated to Tenant:______________

         Section 1.12. Rent and Other Charges Payable by Tenant:

         (a) BASE RENT: Forty-three Thousand Eight Hundred Thirty-two and 34/100
Dollars ($43,832.34) per month for the first 30 months, as provided in Section
3.01, and shall be increased on the first day of the 31st, 61st & 91st month(s)
after the Commencement Date, either (i) as provided in Section 3.02. However the
Index shall not be deemed to have increased by more than at an annual compounded
rate of:* (If (ii) is completed, then (i) and Section 3.02 are inapplicable.)

         (b) OTHER PERIODIC PAYMENTS: (i) Real Property Taxes above the "Base
Real Property Taxes" (See Section 4.02); (ii) Utilities (See Section 4.03);
(iii) Increased Insurance Premiums above "Base Premiums" (See Section 4.04);
(iv) Impounds for Tenant's Share of Insurance Premiums and Property Taxes (See
Section 4.07); (v) Maintenance, Repairs and Alterations (See Article Six).

         Section 1.13. Costs and Charges Payable by Landlord: (a) Base Real
Property Taxes (See Section 4.02); (b) Base Insurance Premiums (See Section
4.04(c)); (c) Maintenance and Repair (See Article Six).

         Section 1.14. Landlord's Share of Profit on Assignment or Sublease:
(See Section 9.05) None percent (0%) of the Profit (the "Landlord's Share").

         Section 1.15. Riders: The following Riders are attached to and made a
part of this Lease: (If none, so state)

         Addendum Rider; Option To Extend Term

*i)      4% during the 1st 30 months; ii) 5% during the 2nd 30 months; and (iii)
         6% during the 3rd 30 months.

ARTICLE TWO: LEASE TERM

         Section 2.01. Lease of Property For Lease Term. Landlord leases the
Property to Tenant and Tenant leases the Property from Landlord for the Lease
Term. The Lease Term is for the period stated in Section 1.05 above and shall
begin and end on the dates specified in Section 1.05 above, unless the beginning
or end of the Lease Term is changed under any provision of this Lease. The
"Commencement Date" shall be the date specified in Section 1.05 above for the
beginning of the Lease Term, unless advanced or delayed under any provision of
this Lease.

         Section 2.02. Delay in Commencement. Landlord shall not be liable to
Tenant if Landlord does not deliver possession of the Property to Tenant on the
Commencement Date. Landlord's non-delivery of the Property to Tenant on that
date shall not affect this Lease or the obligations of Tenant under this Lease
except that the Commencement Date shall be delayed until Landlord delivers
possession of the Property to Tenant and the Lease Term shall be extended for a
period equal to the delay in delivery of possession of the Property to Tenant,
plus the number of days, necessary to end the Lease Term on the last day of a
month. If Landlord does not deliver possession of the Property to Tenant within
sixty (60) days after the Commencement Date, Tenant may elect to cancel this

                                      -2-
<PAGE>

Lease by giving written notice to Landlord within ten (10) days after the sixty
(60) -day period ends. If Tenant gives such notice, the Lease shall be cancelled
and neither Landlord nor Tenant shall have any further obligations to the other.
If Tenant does not give such notice, Tenant's right to cancel the Lease shall
expire and the Lease Term shall commence upon the delivery of possession of the
Property to Tenant. If delivery of possession of the Property to Tenant is
delayed, Landlord and Tenant shall, upon such delivery, execute an amendment to
this Lease setting forth the actual Commencement Date and expiration date of the
Lease. Failure to execute such amendment shall not affect the actual
Commencement Date and expiration date of the Lease.

         Section 2.03. Early Occupancy. If Tenant occupies the Property prior to
the Commencement Date, Tenant's occupancy of the Property shall be subject to
all of the provisions of this Lease. Early occupancy of the Property shall not
advance the expiration date of this Lease. Tenant shall pay Base Rent and all
other charges specified in this Lease for the early occupancy period, unless
otherwise agreed upon by Landlord and Tenant.

         Section 2.04. Holding Over. Tenant shall vacate the Property upon the
expiration or earlier termination of this Lease. Tenant shall reimburse Landlord
for and indemnify Landlord against all damages which Landlord incurs from
Tenant's delay in vacating the Property. If Tenant does not vacate the Property
upon the expiration or earlier termination of the Lease and Landlord thereafter
accepts rent from Tenant, Tenant's occupancy of the Property shall be a
"month-to-month" tenancy, subject to all of the terms of this Lease applicable
to a month-to-month tenancy, except that the Base Rent then in effect shall be
increased by twenty-five percent (25%).

ARTICLE THREE: BASE RENT

         Section 3.01. Time and Manner of Payment. Upon execution of this Lease,
Tenant shall pay Landlord the Base Rent in the amount stated in Paragraph
1.12(a) above for the first month of the Lease Term. On the first day of the
second month of the Lease Term and each month thereafter, Tenant shall pay
Landlord the Base Rent, in advance, without offset, deduction or prior demand.
The Base Rent shall be payable at Landlord's address or at such other place as
Landlord may designate in writing.

         Section 3.02. Cost of Living Increases. The Base Rent shall be
increased on each date (the "Rental Adjustment Date") stated in Paragraph
1.12(a) above in accordance with the increase in the United States Department of
Labor. Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers
Los Angeles-Anaheim-Riverside, all items, on the basis of 1982-1984 = 100) (the
"Index") as follows:

         (a) The Base Rent (the "Comparison Base Rent") in effect immediately
before each Rental Adjustment Date shall be increased by the percentage that the
Index has increased from the date (the "Comparison Date") on which payment of
the Comparison Base Rent began through the month in which the applicable Rental
Adjustment Date occurs. The Base Rent shall not be reduced by reason of such
computation. Landlord shall notify Tenant of each increase by a written
statement which shall include the Index for the applicable Comparison Date, the
Index for the applicable Rental Adjustment Date, the percentage increase between
those two Indices, and the new Base Rent. Any increase in the Base Rent provided
for in this Section 3.02 shall be subject to any minimum or maximum increase, if
provided for in Paragraph 1.12(a).

                                      -3-
<PAGE>

         (b) Tenant shall pay the new Base Rent from the applicable Rental
Adjustment Date until the next Rental Adjustment Date. Landlord's notice may be
given after the applicable Rental Adjustment Date of the increase, and Tenant
shall pay Landlord the accrued rental adjustment for the months elapsed between
the effective date of the increase and Landlord's notice of such increase within
ten (10) days after Landlord's notice. If the format or components of the Index
are materially changed after the Commencement Date, Landlord shall substitute an
index which is published by the Bureau of Labor Statistics or similar agency and
which is most nearly equivalent to the Index in effect on the Commencement Date.
The substitute index shall be used to calculate the increase in the Base Rent
unless Tenant objects to such index in writing within fifteen (15) days after
receipt of Landlord's notice. If Tenant objects, Landlord and Tenant shall
submit the selection of the substitute index for binding arbitration in
accordance with the rules and regulations of the American Arbitration
Association at its office closest to the Property. The costs of arbitration
shall be borne equally by Landlord and Tenant.

Section 3.03. Security Deposit; Increases.

         (a) Upon the execution of this Lease, Tenant shall deposit with
Landlord a cash Security Deposit in the amount set forth in Section 1.10 above.
Landlord may apply all or part of the Security Deposit to any unpaid rent or
other charges due from Tenant or to cure any other defaults of Tenant. If
Landlord uses any part of the Security Deposit, Tenant shall restore the
Security Deposit to its full amount within ten (10) days after Landlord's
written request. Tenant's failure to do so shall be a material default under
this Lease. No interest shall be paid on the Security Deposit. Landlord shall
not be required to keep the Security Deposit separate from its other accounts
and no trust relationship is created with respect to the Security Deposit.

         Section 3.04. Termination; Advance Payments. Upon termination of this
Lease under Article Seven (Damage or Destruction), Article Eight (Condemnation)
or any other termination not resulting from Tenant's default, and after Tenant
has vacated the Property in the manner required by this Lease, Landlord shall
refund or credit to Tenant (or Tenant's successor) the unused portion of the
Security Deposit, any advance rent or other advance payments made by Tenant to
Landlord, and any amounts paid for real property taxes and other reserves which
apply to any time periods after termination of the Lease.

ARTICLE FOUR: OTHER CHARGES PAYABLE BY TENANT

         Section 4.01. Additional Rent. All charges payable by Tenant other than
Base Rent are called "Additional Rent." Unless this Lease provides otherwise,
Tenant shall pay all Additional Rant then due with the next monthly installment
of Base Rent. The term "rent" shall mean Base Rent and Additional Rent.

                                      -4-
<PAGE>

Section 4.02. Property Taxes.

         (a) Real Property Taxes. Landlord shall pay the "Base Real Property
Taxes" on the Properly during the Lease Term. Base Real Property Taxes are real
property taxes applicable to the Property as shown on the tax bill for the most
recent tax fiscal year ending prior to the Commencement Date. **However, if the
structures on the Property are not completed by the tax lien date of such tax
fiscal year, the Base Real Property Taxes are the taxes shown on the first tax
bill showing the full assessed value of the Property after completion of the
structures. Tenant shall pay Landlord the amount, if any, by which the real
property taxes during the Lease Term exceed the Base Real Property Taxes.
Subject to Paragraph 4.02(c), Tenant shall make such payments within fifteen
(15) days after receipt of Landlord's statement showing the amount and
computation of such increase. Landlord shall reimburse Tenant for any real
property taxes paid by Tenant covering any period of time prior to or after the
Lease Term.
**Which it is agreed to be the sum of $24,204.12.

         (b) Definition of "Real Property Tax." "Real property tax" means: (i)
any fee, license fee, license tax, business license fee, commercial rental tax,
levy, charge, assessment, penalty or tax imposed by any taxing authority against
the Property; (ii) any tax on the Landlord's right to receive, or the receipt
of, rent or income from the Property or against Landlord's business of leasing
the Property; (iii) any tax or charge for fire protection, streets, sidewalks,
road maintenance, refuse or other services provided to the Property by any
governmental agency; (iv) any tax imposed upon this transaction or based upon a
re-assessment of the Property due to a change of ownership, as defined by
applicable law, or other transfer of all or part of Landlord's interest in the
Property; and (v) any charge or fee replacing any tax previously included within
the definition of real property tax. "Real property tax" does not, however,
include Landlord's federal or state income, franchise, inheritance or estate
taxes , however, Tenant shall not be responsible for real property tax increases
resulting from any sale or transfer of ownership.

         (c) Joint Assessment. If the Property is not separately assessed,
Landlord shall reasonably determine Tenant's share of the real property tax
payable by Tenant under Paragraph 4.02(a) from the assessor's worksheets or
other reasonably available. information. Tenant shall pay such share to Landlord
within fifteen (15) days after receipt of Landlord's written statement.

         (d) Personal Property Taxes.

                  (i) Tenant shall pay before due all taxes charged against
         trade fixtures, furnishings, equipment or any other personal property
         belonging to Tenant. Tenant shall try to have personal property taxed
         separately from the Property.

                  (ii) If any of Tenant's personal property is taxed with the
         Property, Tenant shall pay Landlord the taxes for the personal property
         within fifteen (15) days after Tenant receives a written statement from
         Landlord for such personal property taxes.

         Section 4.03. Utilities. Tenant shall pay, directly to the appropriate
supplier, the cost of all natural gas, heat, light, power, sewer service,
telephone, water, refuse disposal and other utilities and services supplied to
the Property. However, if any services or utilities are jointly metered with
other property, Landlord shall make a reasonable determination of Tenant's
proportionate share of the cost of such utilities and services and Tenant shall
pay such share to Landlord within fifteen (15) days after receipt of Landlord's
written statement.

                                      -5-
<PAGE>

         Section 4.04. Insurance Policies.

         (a) Liability Insurance. During the Lease Term, Tenant shall maintain a
policy of commercial general liability insurance (sometimes known as broad form
comprehensive general liability insurance) insuring Tenant against liability for
bodily injury, property damage (including loss of use of property) and personal
injury arising out of the operation, use or occupancy of the Property. Tenant
shall name Landlord as an additional insured under such policy. The initial
amount of such insurance shall be One Million Dollars ($1,000,000) per
occurrence and shall be subject to periodic increase based upon inflation,
increased liability awards, recommendation of Landlord's professional insurance
advisers and other relevant factors. The liability insurance obtained by Tenant
under this Paragraph 4.04(a) shall (i) be primary and non-contributing; (ii)
contain cross-liability endorsements; and (iii) insure Landlord against Tenant's
performance under Section 5.05, if the matters giving rise to the indemnity
under Section 5.05 result from the negligence of Tenant. The amount and coverage
of such insurance shall not limit Tenant's liability nor relieve Tenant of any
other obligation under this Lease. Landlord may also obtain comprehensive public
liability insurance in an amount and with coverage determined by Landlord
insuring Landlord against liability arising out of ownership, operation, use or
occupancy of the Property. The policy obtained by Landlord shall not be
contributory and shall not provide primary insurance.

         (b) Property and Rental Income Insurance. During the Lease Term,
Landlord shall maintain policies of insurance covering loss of or damage to the
Property in the full amount of its replacement value. Such policy shall contain
an Inflation Guard Endorsement and shall provide protection against all perils
included within the classification of fire, extended coverage, vandalism,
malicious mischief, special extended perils (all risk), sprinkler leakage and
any other perils which Landlord deems reasonably necessary. Landlord shall have
the right to obtain flood and earthquake insurance. Landlord shall not obtain
insurance for Tenant's fixtures or equipment or building improvements installed
by Tenant on the Property. **During the Lease Term, Landlord shall also maintain
a rental income insurance policy, with loss payable to Landlord, in an amount
equal to one year's Base Rent, plus estimated real property taxes and insurance
premiums. Tenant shall not do or permit anything to be done which invalidates
any such insurance policies. ** with exception to the construction of the
original new offices by Tenant.

                  (i) Landlord shall pay the "Base Premiums" for the insurance
         policies maintained by Landlord under Paragraph 4.04(b) at the lowest
         annual premiums reasonably obtainable for the required insurance for
         the Property.

                  (ii) Tenant shall pay Landlord the amount, if any, by which
         the insurance premiums for all policies maintained by Landlord under
         Paragraph 4.04(b) have increased over the Base Premiums/** whether such
         increases result from the nature of Tenant's occupancy, any act or
         omission of Tenant, the requirement of any lender referred to in
         Article Eleven (Protection of Lenders), the increased value of the
         Property or general rate increases. However, if Landlord substantially
         increases the amount of insurance carried or the percentage of insured
         value after the period during which the Base Premiums were calculated,
         Tenant shall only pay Landlord the amount of increased premiums which
         would have been charged by the insurance carrier if the amount of
         insurance or percentage of insured value had not been substantially

                                      -6-
<PAGE>

         increased by Landlord. This adjustment in the amount due from Tenant
         shall be made only once during the Lease Term. Thereafter, Tenant shall
         be obligated to pay the full amount of any additional increases in the
         insurance premiums, including increases resulting from any further
         increases in the amount of insurance or percentage of insured value.
         Subject to Section 4.05, Tenant shall pay Landlord the increases over
         the Base Premiums within fifteen (15) days after receipt by Tenant of a
         copy of the premium statement or other evidence of the amount due. If
         the insurance policies maintained by Landlord cover improvements or
         real property other than the Property, Landlord shall also deliver to
         Tenant a statement of the amount of the premiums applicable to the
         Property showing, in reasonable detail, how such amount was computed.
         If the Lease Term expires before the expiration of the insurance
         period, Tenant's liability shall be pro rated on an annual basis.
         ** Which it is agreed to be the sum of $24,823.50 (including earthquake
         and flood coverage.)

         (d) General Insurance Provisions.

                  (i) Any insurance which Tenant is required to maintain under
         this Lease shall include a provision which requires the insurance
         carrier to give Landlord not less than thirty (30) days' written notice
         prior to any cancellation or modification of such coverage.

                  (ii) If Tenant fails to deliver any policy, certificate or
         renewal to Landlord required under this Lease within the prescribed
         time period or if any such policy is cancelled or modified during the
         Lease Term without Landlord's consent, Landlord may obtain such
         insurance, in which case Tenant shall reimburse Landlord for the cost
         of such insurance within fifteen (15) days after receipt of a statement
         that indicates the cost of such insurance.

                  (iii) Landlord and Tenant shall maintain all insurance
         required under this Lease with companies holding a "General Policy
         Rating" of A-12 or better, as set forth in the most current issue of
         "Best Key Rating Guide". Landlord and Tenant acknowledge the insurance
         markets are rapidly changing and that insurance in the form and amount
         described in this Section 4.04 may not be available in the future.
         Tenant acknowledges that the insurance described in this Section 4.04
         is for the primary benefit of Landlord. If at any time during the Lease
         Term, Tenant is unable to maintain the insurance required under the
         Lease, Tenant shall nevertheless maintain insurance coverage which is
         customary and commercially reasonable in the insurance industry for
         Tenant's type of business, as that coverage may change from time to
         time. Landlord makes no representation as to the adequacy of such
         insurance to protect Landlord's or Tenant's interests. Therefore,
         Tenant shall obtain any such additional property or liability insurance
         which Tenant deems necessary to protect Landlord and Tenant.

                  (iv) Unless prohibited under any applicable insurance policies
         maintained, Landlord and Tenant each hereby waive any and all rights of
         recovery against the other, or against the officers, employees, agents
         or representatives of the other, for loss of or damage to its property
         or the property of others under its control, if such loss or damage is
         covered by any insurance policy in force (whether or not described in
         this Lease) at the time of such loss or damage. Upon obtaining the
         required policies of insurance, Landlord and Tenant shall give notice
         to the insurance carriers of this mutual waiver of subrogation.

                                      -7-
<PAGE>

         Section 4.05. Late Charges. Tenant's failure to pay rent promptly may
cause Landlord to incur unanticipated costs. The exact amount of such costs are
impractical or extremely difficult to ascertain. Such costs may include, but are
not limited to, processing and accounting charges and late charges which may be
imposed on Landlord by any ground lease, mortgage or trust deed encumbering the
Property. Therefore, if Landlord does not receive any rent payment within ten
(10) days after it becomes due, Tenant shall pay Landlord a late charge equal to
ten percent (10%) of the overdue amount. The parties agree that such late charge
represents a fair and reasonable estimate of the costs Landlord will incur by
reason of such late payment. However, Landlord shall waive such late charges for
the first and second time that Tenant is late in each 12 months rolling period.

         Section 4.06. Interest on Past Due Obligations. Any amount owed by
Tenant to Landlord which is not paid when due shall bear interest at the rate of
fifteen percent (15%) per annum from the due date of such amount. However,
interest shall not be payable on late charges to be paid by Tenant under this
Lease. The payment of interest on such amounts shall not excuse or cure any
default by Tenant under this Lease. If the interest rate specified in this Lease
is higher than the rate permitted by law, the interest rate is hereby decreased
to the maximum legal interest rate permitted by law.

         Section 4.07. Impounds for Insurance Premiums and Real Property Taxes.
If requested by any ground lessor or lender to whom Landlord has granted a
security interest in the Property, or if Tenant is more than ten (10) days late
in the payment of rent more than once in any consecutive twelve (12) -month
period, Tenant shall pay Landlord a sum equal to one-twelfth (1/12) of the
annual real property taxes and insurance premiums payable by Tenant under this
Lease, together with each payment of Base Rent. Landlord shall hold such
payments in a non-interest bearing impound account. If unknown, Landlord shall
reasonably estimate the amount of real property taxes and insurance premiums
when due. Tenant shall pay any deficiency of funds in the impound account to
Landlord upon written request. If Tenant defaults under this Lease, Landlord may
apply any funds in the impound account to any obligation then due under this
Lease.

ARTICLE FIVE: USE OF PROPERTY

         Section 5.01. Permitted Uses. Tenant may use the Property only for the
Permitted Uses set forth in Section 1.06 above.

         Section 5.02. Manner of Use. Tenant shall not cause or permit the
Property to be used in any way which constitutes a violation of any law,
ordinance, or governmental regulation or order, which annoys or interferes with
the rights of other tenants of Landlord, or which constitutes a nuisance or
waste. Tenant shall obtain and pay for all permits, including a Certificate of
Occupancy, required for Tenant's occupancy of the Property and shall promptly
take all actions necessary to comply with all applicable statutes, ordinances,
rules, regulations, orders and requirements regulating the use by Tenant of the
Property, including the Occupational Safety and Health Act.

                                      -8-
<PAGE>

         Section 5.03. Hazardous Materials. As used in this Lease, the term
"Hazardous Material" means any flammable items, explosives, radioactive
materials, hazardous or toxic substances, material or waste or related
materials, including any substances defined as or included in the definition of
"hazardous substances", "hazardous wastes", "hazardous materials" or "toxic
substances" now or subsequently regulated under any applicable federal, state or
local laws or regulations, including without limitation petroleum-based
products, paints, solvents, lead, cyanide, DDT, printing inks, acids,
pesticides, ammonia compounds and other chemical products, asbestos, PCBs and
similar compounds, and including any different products and materials which are
subsequently found to have adverse effects on the environment or the health and
safety of persons. Tenant shall not cause or permit any Hazardous Material to be
generated, produced, brought upon, used, stored, treated or disposed of in or
about the Property by Tenant, its agents, employees, contractors, sublessees or
invitees without the prior written consent of Landlord. Landlord shall be
entitled to take into account such other factors or facts as Landlord may
reasonably determine to be relevant in determining whether to grant or withhold
consent to Tenant's proposed activity with respect to Hazardous Material. In no
event, however, shall Landlord be required to consent to the installation or use
of any storage tanks on the Property.

         Section 5.04. Signs and Auctions. Tenant shall not place any signs on
the Property without Landlord's prior written consent. Tenant shall not conduct
or permit any auctions or sheriff's sales at the Property.

         Section 5.05. Indemnity. Tenant shall indemnify Landlord against and
hold Landlord harmless from any and all costs, claims or liability arising from:
(a) Tenant's use of the Property; (b) the conduct of Tenant's business or
anything else done or permitted by Tenant to be done in or about the Property,
including any contamination of the Property or any other property resulting from
the presence or use of Hazardous Material caused or permitted by Tenant; (c) any
breach or default in the performance of Tenant's obligations under this Lease;
(d) any misrepresentation or breach of warranty by Tenant under this Lease; or
(e) other acts or omissions of Tenant. Tenant shall defend Landlord against any
such cost, claim or liability at Tenant's expense with counsel reasonably
acceptable to Landlord or, at Landlord's election, Tenant shall reimburse
Landlord for any legal fees or costs incurred by Landlord in connection with any
such claim. As a material part of the consideration to Landlord, Tenant assumes
all risk damage to property or injury to persons in or about the Property
arising from any cause, and Tenant hereby waives all claims in respect thereof
against Landlord, except for any claim arising out of Landlord's gross
negligence or willful misconduct. As used in this Section, the term "Tenant"
shall include Tenant's employees, agents, contractors and invitees, if
applicable.

         Section 5.06. Landlord's Access. Landlord or its agents may enter the
Property at all reasonable times to show the Property to potential buyers,
investors or tenants or other parties; to do any other act or to inspect and
conduct tests in order to monitor Tenant's compliance with all applicable
environmental laws and all laws governing the presence and use of Hazardous
Material; or for any other purpose Landlord deems necessary. Landlord shall give
Tenant prior notice of such entry, except in the case of an emergency. Landlord
may place customary "For Sale" or "For Lease" signs on the Property.

                                      -9-
<PAGE>

         Section 5.07. Quiet Possession. If Tenant pays the rent and complies
with all other terms of this Lease, Tenant may occupy and enjoy the Property for
the full Lease Term, subject to the provisions of this Lease.

ARTICLE SIX: CONDITION OF PROPERTY; MAINTENANCE, REPAIRS AND ALTERATIONS

         Section 6.01. Existing Conditions. Tenant accepts the Property in its
condition as of the execution of the Lease, subject to all recorded matters,
laws, ordinances, and governmental regulations and orders. Except as provided
herein, Tenant acknowledges that neither Landlord nor any agent of Landlord has
made any representation as to the condition of the Property or the suitability
of the Property for Tenant's intended use. Tenant represents and warrant that
Tenant has made its own inspection of and inquiry regarding the condition of the
Property and is not relying or any representations of Landlord or any Broker
with respect thereto. Landlord or Landlord's Broker has provided a Property
Information Sheet or other Disclosure Statement regarding the Property, a copy
is attached as an exhibit to the Lease.

         Section 6.02. Exemption of Landlord from Liability. Landlord shall not
be liable for any damage or injury to the person, business (or any loss of
income therefrom), goods, wares, merchandise or other property of Tenant.
Tenant's employees, invitees, customers or any other person in or about the
Property, whether such damage or injury is caused by or results from: (a) fire,
steam, electricity, water, gas or rain; (b) the breakage, leakage, obstruction
or other defects of pipes, sprinklers, wires, appliances, plumbing, air
conditioning or lighting fixtures or any other cause; (c) conditions arising in
or about the Property or from other sources or places; or (d) any act or
omission of any other tenant or Landlord. Landlord shall not be liable for any
such damage or injury even though the cause of or the means of repairing such
damage or injury are not accessible to Tenant. The provisions of this Section
6.02 shall not, however, exempt Landlord from liability for Landlord's gross
negligence or willful misconduct.

         Section 6.03. Landlord's Obligations. Subject to the provisions of
Article Seven (Damage or Destruction) and Article Eight (Condemnation), and
except for damage caused by any act or omission of Tenant, or Tenant's
employees, agents, contractors or invitees, Landlord shall keep the foundation,
roof and structural portions of exterior walls of the improvements on the
Property in good order, condition and repair. However, Landlord shall not be
obligated to maintain or repair windows, doors, plate glass or the surfaces of
walls. Landlord shall not be obligated to make any repairs under this Section
6.03 until a reasonable time after receipt of a written notice from Tenant of
the need for such repairs. Tenant waives the benefit of any present or future
law which might give Tenant the right to repair the Property at Landlord's
expense or to terminate the Lease because of the condition of the Property. See
Addendum Rider.

         Section 6.04. Tenant's Obligations.

                  (a) Except as provided in Article Seven (Damage or
Destruction) and Article Eight (Condemnation), Tenant shall keep all portions of
the Property (including structural, nonstructural, interior, exterior, and
landscaped areas, portions, systems and equipment) in good order, condition and
repair (including interior repainting and refinishing, as needed). If any
portion of the Property or any system or equipment in the Property which Tenant
is obligated to repair cannot be fully repaired or restored, Tenant shall

                                      -10-
<PAGE>

promptly replace such portion of the Property or system or equipment in the
Property, regardless of whether the benefit of such replacement extends beyond
the Lease Term; but if the benefit or useful life of such replacement extends
beyond the Lease Term (as such term may be extended by exercise of any options),
the useful life of such replacement shall be prorated over the remaining portion
of the Lease Term (as extended), and Tenant shall be liable only for that
portion of the cost which is applicable to the Lease Term (as extended). Tenant
shall maintain a preventive maintenance contract providing for the regular
inspection and maintenance of the heating and air conditioning system by a
licensed heating and air conditioning contractor. Landlord shall have the right,
upon written notice to Tenant, to undertake the responsibility for preventive
maintenance of the heating and air conditioning system at Tenant's expense. In
addition, Tenant shall, at Tenant's expense, repair any damage to the roof,
foundation or structural portions of walls caused by Tenant's acts or omissions.
It is the intention of Landlord and Tenant that, at all times during the Lease
Term, Tenant shall maintain the Property in an attractive, first-class and fully
operative condition.

                  (b) Tenant shall fulfill all of Tenant's obligations under
this Section 6.04 at Tenant's sole expense. If Tenant fails to maintain, repair
or replace the Property as required by this Section 6.04, Landlord may, upon
thirty (30) days prior notice to Tenant (except that no notice shall be required
in the case of an emergency), enter the Property and perform such maintenance or
repair (including replacement, as needed) on behalf of Tenant. In such case,
Tenant shall reimburse Landlord for all costs incurred in performing such
maintenance or repair immediately upon demand.

         Section 6.05. Alterations, Additions, and Improvements.

                  (a) Tenant shall not make any alterations, additions, or
improvements to the Property without Landlord's prior written consent, except
for non-structural alterations which do not exceed Twenty Thousand Dollars
($20,000)in co____ cumulatively over the Lease Term and which are not visible
from the outside of any building of which the Property is part. Landlord may
require Tenant to provide demolition and/or lien and completion bonds in form
and amount satisfactory to Landlord. Tenant shall promptly remove any
alterations, additions, or improvements constructed in violation of this
Paragraph 6.05(a) upon Landlord's written request. All alterations, additions,
and improvements shall be done in a good and workmanlike manner, in conformity
with all applicable laws and regulations, and by a contractor approved by
Landlord. Upon completion of any such work, Tenant shall provide Landlord with
"as built plans, copies of all construction contracts, and proof of payment for
all labor and materials. *Per 12 months period nor more than $100,000.

                  (b) Tenant shall pay when due all claims for labor and
material furnished to the Property. Tenant shall give Landlord at least twenty
(20) days' prior written notice of the commencement of any work on the Property,
regardless: of whether Landlord's consent to such work is required. Landlord may
elect to record and post notices of non-responsibility on the Property.

         Section 6.06. Condition upon Termination. Upon the termination of the
Lease, Tenant shall surrender th Property to Landlord, broom clean and in the
same condition as received except for ordinary wear and tear which Tenant was
not otherwise obligated to remedy under any provision of this Lease. However,
Tenant shall not be obligated to repair any damage which Landlord is required to
repair under Article Seven (Damage or Destruction). IN addition, Landlord may

                                      -11-
<PAGE>

require Tenant to remove any alterations, additions or improvements (whether or
not made with Landlord's consent) prior to the expiration of the Lease and to
restore the Property to its prior condition, all at Tenant's expense. All
alterations, additions and improvements which Landlord has not required Tenant
to remove shall become Landlord's property and shall be surrendered to Landlord
upon the expiration or earlier termination of the Lease, except that Tenant may
remove any of Tenant's machinery or equipment which can be removed without
material damage to the Property. Tenant shall repair, at Tenant's expense, any
damage to the Property caused by th removal of any such machinery or equipment.
In no event, however, shall Tenant remove any of the following materials or
equipment (which shall be deemed Landlord's property) without Landlord's prior
written consent: anY power wiring or power panels; lighting or lighting
fixtures; wall coverings; drapes, blinds or other window coverings; carpets or
other floor coverings; heaters, air conditioners or any other heating or air
conditioning equipment; fencing or security gates; or other similar building
operating equipment. *with exception to the construction of the original new
offices by Tenant

ARTICLE SEVEN: DAMAGE OR DESTRUCTION

         Section 7.01. Partial Damage to Property.

                  (a) Tenant shall notify Landlord in writing immediately upon
the occurrence of any damage to the Property. The Property is only partially
damaged (i.e., less than fifty percent (50%) of the Property is untenantable as
a result of such damage or less than fifty percent (50%) of Tenant's operations
are materially impaired) and if the proceeds received by Landlord from the
insurance policies described in Paragraph 4.04(b) are sufficient to pay for the
necessary repairs, this Lease shall remain in effect and Landlord shall repair
the damage as soon as reasonably possible. Landlord may elect (but is not
required) to repair any damage to Tenant's fixtures, equipment, or improvements.

                  (b) If the insurance proceeds received by Landlord are not
sufficient to pay the entire cost of repair, or if the cause of the damage is
not covered by the insurance policies which Landlord maintains under Paragraph
4.04(b) Landlord may elect either to repair the damage as soon as reasonably
possible, in which case this Lease shall remain in full force and effect, or
(ii) terminate this Lease as of the date the damage occurred. Landlord shall
notify Tenant within thirty (30) days after receipt of notice of the occurrence
of the damage whether Landlord elects to repair the damage or terminate the
Lease. If Landlord elects to repair the damage, Tenant shall pay Landlord the
"deductible amount" (if any) under Landlord's insurance policies and, if the
damage was due to an act or omission of Tenant, or Tenant's employees, agents,
contractors or invitees, the difference between the actual cost of repair and
any insurance proceeds received by Landlord. If Landlord elects to terminate
this Lease, Tenant may elect to continue this Lease in full force and effect, in
which case Tenant shall repair any damage to the Property and any building in
which the Property is located. Tenant shall pay the cost of such repairs, except
that upon satisfactory completion of such repairs, Landlord shall deliver to
Tenant any insurance proceeds received by Landlord for the damage repaired by
Tenant. Tenant shall give Landlord written notice of such election within ten
(10) days after receiving Landlord's termination notice.

                                      -12-
<PAGE>

                  (c) If the damage to the Property occurs during the last six
(6) months of the Lease Term and such damage will require more than thirty (30)
days to repair, either Landlord or Tenant may elect to terminate this Lease as
of the date the damage occurred, regardless of the sufficiency of any insurance
proceeds. The party electing to terminate this Lease shall give written
notification to the other party of such election within thirty (30) days after
Tenant's notice to Landlord of the occurrence of the damage.

         Section 7.02. Substantial or Total Destruction. If the Property is
substantially or totally destroyed by any cause whatsoever (i.e., the damage to
the Property is greater than partial damage as described in Section 7.01), and
regardless of whether Landlord receives any insurance proceeds, this Lease shall
terminate as of the date the destruction occurred. Notwithstanding the preceding
sentence, if the Property can be rebuilt within six (6) months after the date of
destruction, Landlord may elect to rebuild the Property at Landlord's own
expense, in which case this Lease shall remain in full force and effect.
Landlord shall notify Tenant of such election within thirty (30) days after
Tenant's notice of the occurrence of total or substantial destruction. If
Landlord so elects, Landlord shall rebuild the Property at Landlord's sole
expense, except that if the destruction was caused by an act or omission of
Tenant; Tenant shall pay Landlord the difference between the actual cost of
rebuilding and any insurance proceeds received by Landlord.

         Section 7.03. Temporary Reduction of Rent. If the Property is destroyed
or damaged and Landlord or Tenant repairs or restores the Property pursuant to
the provisions of this Article Seven, any rent payable during the period of such
damage, repair and/or restoration shall be reduced according to the degree, if
any, to which Tenant's use of the Property is impaired. However, the reduction
shall not exceed the sum of one year's payment of Base Rent, insurance premiums
and real property taxes. Except for such possible reduction in Base Rent,
insurance premiums and real property taxes, Tenant shall not be entitled to any
compensation, reduction, or reimbursement from Landlord as a result of any
damage, destruction, repair, or restoration of or to the Property.

         Section 7.04. Waiver. Tenant waives the protection of any statute, code
or judicial decision which grants tenant the right to terminate a lease in the
event of the substantial or total destruction of the leased property. Tenant
agrees that the provisions of Section 7.02 above shall govern the rights and
obligations of Landlord and Tenant in the event of any substantial or total
destruction to the Property.

ARTICLE EIGHT: CONDEMNATION

         If all or any portion of the Property is taken under the power of
eminent domain or sold under the threat of the power (all of which are called
"Condemnation"), this Lease shall terminate as to the part taken or sold on the
date the condemning authority takes title or possession, whichever occurs first.
If more than twenty percent (20%) of the floor area of the building in which the
Property is located, or which is located on the Property, is taken, either
Landlord or Tenant may terminate this Lease as of the date the condemning
authority takes title or possession, by delivering written notice to the other
within ten (10) days after receipt of written notice of such taking (or in the
absence of such notice, within ten (10) days after the condemning authority
takes title or possession). If neither Landlord nor Tenant terminates this

                                      -13-
<PAGE>

Lease, this Lease shall remain in effect as to the portion of the Property not
taken, except that the Base Rent and Additional Rent shall be reduced in
proportion to the reduction in the floor area of the Property. Any Condemnation
award or payment shall be distributed in the following order: (a) first, to any
ground lessor, mortgagee or beneficiary under a deed of trust encumbering the
Property, the amount of its interest in the Property; (b) second. to Tenant,
only the amount of any award specifically designated for loss of or damage to
Tenant's trade fixtures or removable personal property; and (c) third, to
Landlord, the remainder of such award, whether as compensation for reduction in
the value of the leasehold, the taking of the fee, or otherwise. If this Lease
is not terminated, Landlord shall repair any damage to the Property caused by
the Condemnation, except that Landlord shall not be obligated to repair any
damage for which Tenant has been reimbursed by the condemning authority. If the
severance damages received by Landlord are not sufficient to pay for such
repair, Landlord shall have the right to either terminate this Lease or make
such repair at Landlord's expense.

ARTICLE NINE: ASSIGNMENT AND SUBLETTING

         Section 9.01. Landlord's Consent Required. No portion of the Property
or of Tenant's interest in this Lease may be acquired by any other person or
entity, whether by sale, assignment, mortgage, sublease, transfer, operation of
law, or act of Tenant, without Landlord's prior written consent, except as
provided in Section 9.02 below. Landlord has the right to grant or withhold its
consent as provided in Section 9.05 below. Any attempted transfer without
consent shall be void and shall constitute a non-curable breach of this Lease.
If Tenant is a partnership, any cumulative transfer of more than twenty percent
(20%) of the partnership interests shall require Landlord's consent. If Tenant
is a corporation, any change in the ownership of a controlling interest of the
voting stock of the corporation shall require Landlord's consent.

         Section 9.02. Tenant Affiliate. Tenant may assign this Lease or
sublease the Property, without Landlord's consent, to any corporation which
controls, is controlled by or is under common control with Tenant, or to any
corporation resulting from the merger of or consolidation with Tenant ("Tenant's
Affiliate"). In such case, any Tenant's Affiliate shall assume in writing all of
Tenant's obligations under this Lease.

         Section 9.03. No Release of Tenant. No transfer permitted by this
Article Nine, whether with or without Landlord's consent, shall release Tenant
or change Tenant's primary liability to pay the rent and to perform all other
obligations of Tenant under this Lease. Landlord's acceptance of rent from any
other person is not a waiver of any provision of this Article Nine. Consent to
one transfer is not a consent to any subsequent transfer. If Tenant's transferee
defaults under this Lease, Landlord may proceed directly against Tenant without
pursuing remedies against the transferee. Landlord may consent to subsequent
assignments or modifications of this Lease by Tenant's transferee, without
notifying Tenant or obtaining its consent. Such action shall not relieve
Tenant's liability under this Lease.

         Section 9.04. Offer to Terminate. If Tenant desires to assign the Lease
or sublease the Property, Tenant shall have the right to offer, in writing, to
terminate the Lease as of a date specified in the offer. If Landlord elects in
writing to accept the offer to terminate within twenty (20) days after notice of
the offer, the Lease shall terminate as OF the date specified and all the terms
and provisions of the Lease governing termination shall apply. If Landlord does
not so elect, the Lease shall continue in effect until otherwise terminated and
the provisions of Section 9.05 with respect to any proposed transfer shall
continue to apply.

                                      -14-
<PAGE>

         Section 9.05. Landlord's Consent.

                  (a) Tenant's request for consent to any transfer described in
         Section 9.01 shall set forth in writing the details of the proposed
         transfer, including the name, business and financial condition of the
         prospective transferee, financial details of the proposed transfer
         (e.g., the term of and the rent and security deposit payable under any
         proposed assignment or sublease), and any other information Landlord
         deems relevant. Landlord shall have the right to withhold consent, if
         reasonable, or to grant consent, based on the following factors: (i)
         the business of the proposed assignee or subtenant and the proposed use
         of the Property; (ii) the net worth and financial reputation of the
         proposed assignee or subtenant; (iii) Tenant's compliance with all of
         its obligations under the Lease; and (iv) such other factors as
         Landlord may reasonably deem relevant. If Landlord objects to a
         proposed assignment solely because of the net worth and/or financial
         reputation of the proposed assignee, Tenant may nonetheless sublease
         (but not assign), all or a portion of the Property to the proposed
         transferee, but only on the other terms of the proposed transfer.

                  (b) If Tenant assigns or subleases, the following shall apply:

                  (i) Tenant shall pay to Landlord as Additional Rent under the
         Lease the Landlord's Share (stated in Section 1.14) of the Profit
         (defined below) on such transaction as and when received by Tenant,
         unless Landlord gives written notice to Tenant and the assignee or
         subtenant that Landlord's Share shall be paid by the assignee or
         subtenant to Landlord directly. The "Profit" means (A) all amounts paid
         to Tenant for such assignment or sublease, including "key" money,
         monthly rent in excess of the monthly rent payable under the Lease, and
         all fees and other consideration paid for the assignment or sublease,
         including fees under any collateral agreements less (B) costs and
         expenses directly incurred by Tenant in connection with the execution
         and performance of such assignment or sublease for real estate broker's
         commissions and costs of renovation or construction of tenant
         improvements required under such assignment or sublease. Tenant is
         entitled to recover such costs and expenses before Tenant is obligated
         to pay the Landlord's Share to Landlord. The Profit in the case of a
         sublease of less than all the Property is the rent allocable to the
         subleased space as a percentage on a square footage basis.

                  (ii) Tenant shall provide Landlord a written statement
         certifying all amounts to be paid from any assignment or sublease of
         the Property within thirty (30) days after the transaction
         documentation is signed, and Landlord may inspect Tenant's books and
         records to verify the accuracy of such statement. On written request,
         Tenant shall promptly furnish to Landlord copies of all the transaction
         documentation, all of which shall be certified by Tenant to be
         complete, true and correct. Landlord's receipt of Landlord's Share
         shall not be a consent to any further assignment or subletting. The
         breach of Tenant's obligation under this Paragraph 9.05(b) shall be a
         material default of the Lease.

                                      -15-
<PAGE>

         Section 9.06. No Merger. No merger shall result from Tenant's sublease
of the Property under this Article Nine, Tenant's surrender of this Lease or the
termination of this Lease in any other manner. In any such event, Landlord may
terminate any or all subtenancies or succeed to the interest of Tenant as
sublandlord under any or all subtenancies.

ARTICLE TEN: DEFAULTS; REMEDIES

         Section 10.01. Covenants and Conditions. Tenant's performance of each
of Tenant's obligations under this Lease is a condition as well as a covenant.
Tenant's right to continue in possession of the Property is conditioned upon
such performance. Time is of the essence in the performance of all covenants and
conditions.

         Section 10.02. Defaults. Tenant shall be in material default under this
Lease:

                  (a) If Tenant abandons the Property or if Tenant's vacation of
the Property results in the cancellation of any insurance described in Section
4.04;

                  (b) If Tenant fails to pay rent or any other charge when due;

                  (c) If Tenant fails to perform any of Tenant's non-monetary
obligations under this Lease for a period of thirty (30) days after written
notice from Landlord; provided that if more than thirty (30) days are required
to complete such performance, Tenant shall not be in default if Tenant commences
such performance within the thirty (30) -day period and thereafter diligently
pursues its completion. However, Landlord shall not be required to give such
notice if Tenant's failure to perform constitutes a non-curable breach of this
Lease. The notice required by this Paragraph is intended to satisfy any and all
notice requirements imposed by law on Landlord and is not in addition to any
such requirement.

                  (d) (i) If Tenant makes a general assignment or general
arrangement for the benefit of creditors; (ii) if a petition for adjudication of
bankruptcy or for reorganization or rearrangement is filed by or against Tenant
and is not dismissed within thirty (30) days; (iii) if a trustee or receiver is
appointed to take possession of substantially all of Tenant's assets located at
the Property or of Tenant's interest in this Lease and possession is not
restored to Tenant; within thirty (30) days; or (iv) if substantially all of
Tenant's assets located at the Property or of Tenant's interest in this Lease is
subjected to attachment, execution or other judicial seizure which is not
discharged within thirty (30) days. If a court of competent jurisdiction
determines that any of the acts described in this subparagraph (d) is no [__]
default under this Lease, and a trustee is appointed to take possession (or II
Tenant remains a debtor in possession) and such trustee or Tenant transfers
Tenant's interest hereunder, then Landlord shall receive, as Additional Rent,
the excess, if any, of the rent (or any other consideration) paid in connection
with such assignment or sublease over the rent payable by Tenant under this
Lease.

                  (e) If any guarantor of the Lease revokes or otherwise
terminates, or purports to revoke or otherwise terminate any guaranty of all or
any portion of Tenant's obligations under the Lease. Unless otherwise expressly
provided, guaranty of the Lease is revocable.

                                      -16-
<PAGE>

         Section 10.03. Remedies. On the occurrence of any material default by
Tenant, Landlord may, at any time thereafter, with or without notice or demand
and without limiting Landlord in the exercise of any right or remedy which
Landlord may have:

                  (a) Terminate Tenant's right to possession of the Property by
any lawful means, in which case this Lease shall terminate and Tenant shall
immediately surrender possession of the Property to Landlord. In such event.
Landlord shall be entitled to recover from Tenant all damages incurred by
Landlord by reason of Tenant's default, including the worth at the time of the
award of the unpaid Base Rent, Additional Rent and other charges which Landlord
his earned at the time of the termination; (ii) the worth at the time of the
award of the amount by which the unpaid Base Rent, Additional Rent and other
charges which Landlord would have earned after termination until the time of the
award exceeds the amount of such rental loss that Tenant proves Landlord could
have reasonably avoided; (iii) the worth at the time of the award of the amount
by which the unpaid Base Rent, Additional Rent and other charges which Tenant
would have paid for the balance of the Lease term after the time of award
exceeds the amount of such rental loss that Tenant proves Landlord could have
reasonably avoided; and (iv) any other amount necessary to compensate Landlord
for all the detriment proximately caused by Tenant's failure to perform its
obligations under the Lease or which in the ordinary course of things would be
likely to result therefrom, including, but not limited to any costs or expenses
Landlord incurs in maintaining or preserving the Property after such default,
the cost of recovering possession of the Property, expenses of reletting,
including necessary renovation or alteration of the Property, Landlord's
reasonable attorneys' fees incurred in connection therewith, and any real estate
commission paid or payable. As used in subparts (i) and (ii) above, the "worth
at the time of the award" is computed by allowing interest on unpaid amounts at
the rate of fifteen percent (15%) per annum, or such lesser amount as may then
be the maximum lawful rate. As used in subpart (Iii) above, the "worth at the
time of the award" 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%). If Tenant has abandoned the Property, Landlord shall have the
option of (i) retaking possession of the Property and recovering from Tenant the
amount specified in this Paragraph 10.03(a), or (ii) proceeding under Paragraph
10.03(b);

                  (b) Maintain Tenant's right to possession, in which case this
Lease shall continue in effect whether or not Tenant has abandoned the Property.
In such event, Landlord shall be entitled to enforce all of Landlord's rights
and remedies under this Lease, including the right to recover the rent as it
becomes due;

                  (c) Pursue any other remedy now or hereafter available to
Landlord under the laws or judicial decisions of the state in which the Property
is located.

         Section 10.04. Repayment of "Free" Rent. If this Lease provides for a
postponement of any monthly rental payments, a period of "free" rent or other
rent concession, such postponed rent or "free" rent is called the "Abated Rent".
Tenant shall be credited with having paid all of the Abated Rent on the
expiration of the Lease Term only if Tenant has fully, faithfully, and
punctually performed all of Tenant's obligations hereunder, including the
payment of all rent (other than the Abated Rent) and all other monetary
obligations and the surrender of the Property in the physical condition required

                                      -17-
<PAGE>

by this Lease. Tenant acknowledges that its right to receive credit for the
Abated Rent is absolutely conditioned upon Tenant's full, faithful and punctual
performance of its obligations under this Lease. If Tenant defaults and does not
cure within any applicable grace period, the Abated Rent shall immediately
become due and payable in full and this Lease shall be enforced as if there were
no such rent abatement or other rent concession. In such case Abated Rent shall
be calculated based on the full initial rent payable under this Lease.

         Section 10.05. Automatic Termination. Notwithstanding any other term or
provision hereof to the contrary, the Lease shall terminate on the occurrence of
any act which affirms the Landlord's intention to terminate the Lease as
provided in Section 10.03 hereof, including the filing of an unlawful detainer
action against Tenant. On such termination, Landlord's damages for default shall
include all costs and fees, including reasonable attorneys' fees that Landlord
incurs in connection with the filing, commencement, pursuing and/or defending of
any action in any bankruptcy court or other court with respect to the Lease; the
obtaining of relief from any stay in bankruptcy restraining any action to evict
Tenant; or the pursuing of any action with respect to Landlord's right to
possession of the Property. All such damages suffered (apart from Base Rent and
other rent payable hereunder) shall constitute pecuniary damages which must be
reimbursed to Landlord prior to assumption of the Lease by Tenant or any
successor to Tenant in any bankruptcy or other proceeding.

         Section 10.06. Cumulative Remedies. Landlord's exercise of any right or
remedy shall not prevent it from exercising any other right or remedy.

ARTICLE ELEVEN: PROTECTION OF LENDERS

         Section 11.01. Subordination. Landlord shall have the right to
subordinate this Lease to any ground lease deed of trust or mortgage encumbering
the Property, any advances made on the security thereof and any renewals
modifications, consolidations, replacements or extensions thereof, whenever made
or recorded. Tenant shall cooperate with Landlord and any lender which is
acquiring a security interest in the Property or the Lease. Tenant shall execute
such further documents and assurances as such lender may require, provided that
Tenant's obligations under this Lease shall not be increased in any material way
(the performance of ministerial acts shall not be deemed material), and Tenant
shall not be deprived of its rights under this Lease. Tenant's right to quiet
possession of the Property during the Lease Term shall not be disturbed if
Tenant pays the rent and performs all of Tenant's obligations under this Lease
and is not otherwise in default. If any ground lessor, beneficiary or mortgagee
elects to have this Lease prior to the lien of its ground lease, deed of trust
or mortgage and gives written notice thereof to Tenant, this Lease shall be
deemed prior to such ground lease, deed of trust or mortgage whether this Lease
is dated ( prior or subsequent to the date of said ground lease, deed of trust
or mortgage or the date of recording thereof.

         Section 11.02. Attornment. If Landlord's interest in the Property is
acquired by any ground lessor, beneficiary under a deed of trust, mortgagee, or
purchaser at a foreclosure sale, Tenant shall attorn to the transferee of a
successor to Landlord's interest in the Property and recognize such transferee
or successor as Landlord under the Lease. Tenant waives the protection of any
statute or rule of law which gives or purports to give Tenant any right to
terminate this Lease or surrender possession of the Property upon the transfer
of Landlord's interest.

                                      -18-
<PAGE>

         Section 11.03. Signing of Documents. Tenant shall sign and deliver any
instrument or documents necessary or appropriate to evidence any such attornment
or subordination or agreement to do so. If Tenant fails to do within ten (10)
days after written request, Tenant hereby makes, constitutes and irrevocably
appoints Landlord, any transferee or successor of Landlord, the attorney-in-fact
of Tenant to execute and deliver any such instrument or document.

         Section 11.04. Estoppel Certificates.

                  (a) Upon Landlord's written request, Tenant shall execute,
acknowledge and deliver to Landlord a written statement certifying: (i) that
none of the terms or provisions of this Lease have been changed (or if they have
been changed, stating how they have been changed); (ii) that this Lease has not
been cancelled or terminated; (iii) the last date of payment of the Base Rent
and other charges and the time period covered by such payment; (iv) that
Landlord is not in default under this Lease (or, if Landlord is claimed to be in
default, stating why); and (v) such other representations or information with
respect to Tenant or the Lease as Landlord may reasonably request or which any
prospective purchaser or encumbrancer of the Property may require. Tenant shall
deliver such statement to Landlord within ten (10) days after Landlord's
request. Landlord may give any such statement by Tenant to any prospective
purchaser or encumbrancer of the Property. Such purchaser or encumbrancer may
rely conclusively upon such statement as true and correct.

                  (b) If Tenant does not deliver such statement to Landlord
within such ten (10) -day period, Landlord, and any prospective purchaser or
encumbrancer, may conclusively presume and rely upon the following facts: (i)
that the terms and provisions of this Lease have not been changed except as
otherwise represented by Landlord; (ii) that this Lease has not been cancelled
or terminated except as otherwise represented by Landlord; (iii) that not more
than one month's Base Rent or other charges have been paid in advance; and (iv)
that Landlord is not in default under the Lease. In such event, Tenant shall be
estopped from denying the truth of such facts.

         Section 11.05. Tenant's Financial Condition. Within ten (10) days after
written request from Landlord, Tenant shall deliver to Landlord such financial
statements as Landlord reasonably requires to verify the net worth of Tenant or
any assignee, subtenant, or guarantor of Tenant. In addition, Tenant shall
deliver to any lender designated by Landlord any financial statements required
by such lender to facilitate the financing or refinancing of the Property.
Tenant represents and warrants to Landlord that each such financial statement is
a true and accurate statement as of the date of such statement. All financial
statements shall be confidential and shall be used only for the purposes set
forth in this Lease.

ARTICLE TWELVE: LEGAL COSTS

         Section 12.01 Legal Proceedings. If Tenant or Landlord shall be in
breach or default under this Lease, such party (the "Defaulting Party") shall
reimburse the other party (the "Nondefaulting Party") upon demand for any costs
or expenses that the Nondefaulting Party incurs in connection with any breach or
default of the Defaulting Party under this Lease, whether or not suit is
commenced or judgment entered. Such costs shall include legal fees and costs
incurred for the negotiation of a settlement, enforcement of rights or
otherwise. Furthermore, if any action for breach of or to enforce the provisions
of this Lease is commenced, the court in such action shall award to the party in
whose favor a judgment is entered, a reasonable sum as attorneys' fees and

                                      -19-
<PAGE>

costs. The losing party in such action shall pay such attorneys' fees and costs.
Tenant shall also indemnify Landlord against and hold Landlord harmless from all
costs, expenses, demands and liability Landlord may incur if Landlord becomes or
is made a party to any claim or action (a) instituted by Tenant against any
third party, or by any third party against Tenant, or by or against any person
holding any interest under or using the Property by license of or agreement with
Tenant; (b) for foreclosure of any lien for labor or material furnished to or
for Tenant or such other person; (c) otherwise arising out of or resulting from
any act or transaction of Tenant or such other person; or (d) necessary to
protect Landlord's interest under this Lease in a bankruptcy proceeding, or
other proceeding under Title 11 of the United States Code, as amended. Tenant
shall defend Landlord against any such claim or action at Tenant's expense with
counsel reasonably acceptable to Landlord or, at Landlord's election, Tenant
shall reimburse Landlord for any legal fees or costs Landlord incurs in any such
claim or action.

         Section 12.02. Landlord's Consent. Tenant shall pay Landlord's
reasonable attorneys' fees incurred in connection with Tenant's request for
Landlord's consent under Article Nine (Assignment and Subletting), or in
connection with any other act which Tenant proposes to do and which requires
Landlord's consent.

ARTICLE THIRTEEN: MISCELLANEOUS PROVISIONS

         Section 13.01. Non-Discrimination. Tenant promises, and it is a
condition to the continuance of this Lease that there will be no discrimination
against, or segregation of, any person or group of persons on the basis of race,
color, sex, creed, national origin or ancestry in the leasing, subleasing,
transferring, occupancy, tenure or use of the Property or any portion thereof.

         Section 13.02. Landlord's Liability; Certain Duties.

                  (a) As used in this Lease, the term "Landlord" means only the
current owner or owners of the fee title to the Property or the leasehold estate
under a ground lease of the Property at the time in question. Each Landlord is
obligated to perform the obligations of Landlord under this Lease only during
the time such Landlord owns such interest or title. Any Landlord who transfers
its title or interest is relieved of all liability with respect to the
obligations of Landlord under this Lease to be performed on or after the date of
transfer. However, each Landlord shall deliver to its transferee all funds that
Tenant previously paid if such funds have not yet been applied under the terms
of this Lease.

                  (b) Tenant shall give written notice of any failure by
Landlord to perform any of its obligations under this Lease to Landlord and to
any ground lessor, mortgagee or beneficiary under any deed of trust encumbering
the Property whose name and address have been furnished to Tenant in writing.
Landlord shall not be in default under this Lease unless Landlord (or such
ground lessor, mortgagee or beneficiary) fails to cure such non-performance
within thirty (30) days after receipt of Tenant's notice. However, if such
non-performance reasonably requires more than thirty (30) days to cure, Landlord
shall not be in default if such cure is commenced within such thirty (30) day
period and thereafter diligently pursued to completion.

                                      -20-
<PAGE>

                  (c) Notwithstanding any term or provision herein to the
contrary, the liability of Landlord for the performance of its duties and
obligations under this Lease is limited to Landlord's interest in the Property,
and neither the Landlord nor its partners, shareholders, officers or other
principals shall have any personal liability under this Lease.

         Section 13.03. Severability. A determination by a court of competent
jurisdiction that any provision of this Lease or any part thereof is illegal or
unenforceable shall not cancel or invalidate the remainder of such provision of
this Lease, which shall remain in full force and effect.

         Section 13.04. Interpretation. The captions of the Articles or Sections
of this Lease are to assist the parties in reading this Lease and are not a part
of the terms or provisions of this Lease. Whenever required by the context of
this Lease, the singular shall include the plural and the plural shall include
the singular. The masculine, feminine and neuter genders shall each include the
other. In any provision relating to the conduct, acts or omissions of Tenant,
the term "Tenant" shall include Tenant's agents, employees, contractors,
invitees, successors or others using the Property with Tenant's expressed or
implied permission.

         Section 13.05. Incorporation of Prior Agreements; Modifications. This
Lease is the only agreement between the parties pertaining to the lease of the
Property and no other agreements are effective. All amendments to this Lease
shall be in writing and signed by all parties. Any other attempted amendment
shall be void.

         Section 13.06. Notices. All notices required or permitted under this
Lease shall be in writing and shall be personally delivered or sent by certified
mail, return receipt requested, postage prepaid. Notices to Tenant shall be
delivered to the address specified in Section 1.03 above, except that upon
Tenant's taking possession of the Property, the Property shall be Tenant's
address for notice purposes. Notices to Landlord shall be delivered to the
address specified in Section 1.02 above. All notices shall be effective upon
delivery. Either party may change its notice address upon written notice to the
other party.

         Section 13.07. Waivers. All waivers must be in writing and signed by
the waiving party. Landlord's failure to enforce any provision of this Lease or
its acceptance of rent shall not be a waiver and shall not prevent Landlord from
enforcing that provision or any other provision of this Lease in the future. No
statement on a payment check from Tenant or in a letter accompanying a payment
check shall be binding on Landlord. Landlord may, with or without notice to
Tenant, negotiate such check without being bound to the conditions of such
statement.

         Section 13.08. No Recordation. Tenant shall not record this Lease
without prior written consent from Landlord. However, either Landlord or Tenant
may require that a "Short Form" memorandum of this Lease executed by both
parties be recorded. The party requiring such recording shall pay all transfer
taxes and recording fees.

                                      -21-
<PAGE>

         Section 13.09. Binding Effect; Choice of Law. This Lease binds any
party who legally acquires any rights or interest in this Lease from Landlord or
Tenant. However, Landlord shall have no obligation to Tenant's successor unless
the rights or interests of Tenant's successor are acquired in accordance with
the terms of this Lease. The laws of the state in which the Property is located
shall govern this Lease.

         Section 13.10. Corporate Authority; Partnership Authority. If Tenant is
a corporation, each person signing this Lease on behalf of Tenant represents and
warrants that he has full authority to do so and that this Lease binds the
corporation. Within thirty (30) days after this Lease is signed, Tenant shall
deliver to Landlord a certified copy of a resolution of Tenant's Board of
Directors authorizing the execution of this Lease or other evidence of such
authority reasonably acceptable to Landlord. If Tenant is a partnership, each
person or entity signing this Lease for Tenant represents and warrants that he
or it is a general partner of the partnership, that he or it has full authority
to sign for the partnership and that this Lease binds the partnership and all
general partners of the partnership. Tenant shall give written notice to
Landlord of any general partner's withdrawal or addition. Within thirty (30)
days after this Lease is signed, Tenant shall deliver to Landlord a copy of
Tenant's recorded statement of partnership or certificate of limited
partnership.

         Section 13.11. Joint and Several Liability. All parties signing this
Lease as Tenant shall be jointly and severally liable for all obligations of
Tenant.

         Section 13.12. Force Majeure. If Landlord cannot perform any of its
obligations due to events beyond Landlord's control, the time provided for
performing such obligations shall be extended by a period of time equal to the
duration of such events. Events beyond Landlord's control include, but are not
limited to, acts of God, war, civil commotion, labor disputes, strikes, fire,
flood or other casualty, shortages of labor or material, government regulation
or restriction and weather conditions.

         Section 13.13. Execution of Lease. This Lease may be executed in
counterparts and, when all counterpart documents are executed, the counterparts
shall constitute a single binding instrument. Landlord's delivery of this Lease
to Tenant shall not be deemed to be an offer to lease and shall not be binding
upon either party until executed and delivered by both parties.

         Section 13.14. Survival. All representations and warranties of Landlord
and Tenant shall survive the termination of this Lease.

ARTICLE FOURTEEN: BROKERS

         Section 14.01. Broker's Fee. When this Lease is signed by and delivered
to both Landlord and Tenant, Landlord shall pay a real estate commission to
Landlord's Broker named in Section 1.08 above, if any, as provided in the
written agreement between Landlord and Landlord's Broker, or the sum stated in
Section 1.09 above for services rendered to Landlord by Landlord's Broker in
this transaction. Landlord shall pay Landlord's Broker a commission if Tenant
exercises any option to extend the Lease Term or to buy the Property, or any
similar option or right which Landlord may grant to Tenant, or if Landlord's
Broker is the procuring cause of any other lease or sale entered into between
Landlord and Tenant covering the Property. Such commission shall be the amount
set forth in Landlord's Broker's commission schedule in effect as of the
execution of this Lease. If a Tenant's Broker is named in Section 1.08 above,
Landlord's Broker shall pay an appropriate portion of its commission to Tenant's
Broker if so provided in any agreement between Landlord's Broker and Tenant's
Broker. Nothing contained in this Lease shall impose any obligation on Landlord
to pay a commission or fee to any party other than Landlord's Broker.

                                      -22-
<PAGE>

         Section 14.02. Protection of Brokers. If Landlord sells the Property,
or assigns Landlord's interest in this Lease, the buyer or assignee shall, by
accepting such conveyance of the Property or assignment of the Lease, be
conclusively deemed to have agreed to make all payments to Landlord's Broker
thereafter required of Landlord under this Article Fourteen. Landlord's Broker
shall have the right to bring a legal action to enforce or declare rights under
this provision. The prevailing party in such action shall be entitled to
reasonable attorneys' fees to be paid by the losing party. Such attorneys' fees
shall be fixed by the court in such action. This Paragraph is included in this
Lease for the benefit of Landlord's Broker.

         Section 14.03. Broker's Disclosure of Agency. Landlord's Broker hereby
discloses to Landlord and Tenant and Landlord and Tenant hereby consent to
Landlord's Broker acting in this transaction as the agent of (check one):

         |X|      Landlord exclusively; or
         [ ]      both Landlord and Tenant.

         Section 14.04. No Other Brokers. Tenant represents and warrants to
Landlord that the brokers named in Section 1.08 above are the only agents,
brokers, finders or other parties with whom Tenant has dealt who are or may be
entitled to any commission or fee with respect to this Lease or the Property.

         ADDITIONAL PROVISIONS MAY BE SET FORTH IN A RIDER OR RIDERS ATTACHED
HERETO OR IN THE BLANK SPACE BELOW. IF NO ADDITIONAL PROVISIONS ARE INSERTED,
PLEASE DRAW A LINE THROUGH THE SPACE BELOW.

         Landlord and Tenant have signed this Lease at the place and on the
dates specified adjacent to their signatures below and have initialed all Riders
which are attached to or incorporated by reference in this Lease.

                                      "LANDLORD"

Signed on May 3, 1994                 VERNON ASSOCIATES, A California
                                      Partnership
at ___________________________
                                      __________________________________________

                                      By: /S/ WILLIAM D. FELDMAN
                                          --------------------------------------

                                          Its: GENERAL PARTNER

                                      By: ______________________________________

                                          Its: _________________________________

                                      -23-
<PAGE>

                                          "TENANT"

Signed on April 27, 1994                  ERNEST PAPER PRODUCTS, INC.

at ___________________________            A CALIFORNIA CORPORATION

                                          By: /S/ TIMOTHY G. WILSON
                                              ----------------------------------
                                          Its: PRESIDENT

                                          By: __________________________________

                                          Its:__________________________________

         IN ANY REAL ESTATE TRANSACTION, IT IS RECOMMENDED THAT YOU CONSULT WITH
A PROFESSIONAL, SUCH AS A CIVIL ENGINEER, INDUSTRIAL HYGIENIST OR OTHER PERSON
WITH EXPERIENCE IN EVALUATING THE CONDITION OF THE PROPERTY, INCLUDING THE
POSSIBLE PRESENCE OF ASBESTOS, HAZARDOUS MATERIALS AND UNDERGROUND STORAGE
TANKS.

         THIS PRINTED FORM LEASE HAS BEEN DRAFTED BY LEGAL COUNSEL AT THE
DIRECTION OF THE SOUTHERN CALIFORNIA CHAPTER OF THE SOCIETY OF INDUSTRIAL AND
OFFICE REALTORS(R), INC. NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE
SOUTHERN CALIFORNIA CHAPTER OF THE SOCIETY OF INDUSTRIAL AND OFFICE REALTORS(R)
INC., ITS LEGAL COUNSEL, THE REAL ESTATE BROKERS NAMED HEREIN, OR THEIR
EMPLOYEES OR AGENTS, AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT OR TAX
CONSEQUENCES OF THIS LEASE OR OF THIS TRANSACTION. LANDLORD AND TENANT SHOULD
RETAIN LEGAL COUNSEL TO ADVISE THEM ON SUCH MATTERS AND SHOULD RELY UPON THE
ADVICE OF SUCH LEGAL COUNSEL.

                                      -24-
<PAGE>

                 ADDENDUM RIDER TO INDUSTRIAL REAL ESTATE LEASE
                       DATED APRIL 22, 1994 BY AND BETWEEN
                  VERNON ASSOCIATES, A CALIFORNIA PARTNERSHIP,
                                    LANDLORD
                                       AND
                           ERNEST PAPER PRODUCTS, INC.
                                     TENANT
                      FOR PREMISES AT 2727 E. VERNON AVENUE
                               VERNON, CALIFORNIA

1. TENANT'S IMPROVEMENTS:

         In consideration of the Abated Rent, Tenant shall promptly: a) demolish
the existing offices and build approximately 8,000 square feet of new offices
plus new bathrooms on Property; and b) paint the exterior walls of Property. All
of such work shall be performed in a good and workmanlike manner, according to
Code and pursuant to building permits as required and in compliance with the
provisions of Section 6.05 of This Lease. Landlord consents to these
improvements, however Tenant shall provide Landlord with a copy of "as built"
plans.

2. SIGNS:

         Tenant is advised that the adjoining property tenant has been granted
the right to place two signs on the access easement at the corner of Vernon
Avenue and Seville. Each of such signs shall not be larger than 6' x 10' and are
subject to the reasonable approval of Landlord.

         Tenant shall have the right to install, Tenant's trade signs to the
building and in the parking area, provided said signs are attached to and not
painted directly on the building and said signs and their installation is in
accordance with all governmental codes.

3. HAZARDOUS MATERIALS AND CONDITIONS:

         Tenant shall not use, store or in any other way introduce hazardous
materials in, on or about the Property. Except that Landlord acknowledges that
Tenant in its normal business operation, warehouses and distributes janitorial
products including but not limited to cleansers, disinfectants and spray
adhesives. Tenant shall not manufacture any hazardous substance on or in the
premises.

         Tenant assumes all liability, indemnifies, protects, saves and holds
Landlord harmless from any claims associated with, related or arising from and
for any damages, cost or expense to Landlord (including attorneys' and experts'
reasonable fees and costs) resulting from Tenant's using, storing or in any
other way introducing in, on or about Property any hazardous materials.

<PAGE>

4. CONDITION OF PROPERTY:

         Notwithstanding the provisions of the Lease, Landlord shall deliver the
premises clean and free of debris on or before January 1, 1995, and warrants to
Tenant that the existing plumbing, fire sprinkler system, lighting, warehouse
heating, parking areas, loading areas, load levelers and loading doors in the
premises, other than those constructed by Tenant, shall be in good operating
condition as of January 1, 1995. If a non-compliance with said warranty exists
as of January 1, 1995, or a sooner date of occupancy, Landlord shall, except as
otherwise provided in the Lease, promptly after receipt of written notice from
Tenant setting forth with specificity the nature and extent of such compliance,
rectify same at Landlord's expense. If Tenant does not give Landlord written
notice of a non-compliance with this warranty within sixty (60) days from
January 1, 1995, or an earlier date of occupancy, correction of that
noncompliance shall be the obligation of Tenant at Tenant's sole cost and
expense..

5. REASONABLENESS:

         Whenever this Lease provides for a party's consent, such consent shall
not be unreasonably withheld.

6. REPRESENTATION:

         William D. Feldman is a principal of William D. Feldman Associates,
Landlord's broker, is a licensed real estate broker and is a partner of
Landlord.

7. LANDLORD'S OBLIGATION TO REPAIR AND MAINTAIN:

         Landlord will be responsible for the roof, except for any incident
costing Two Hundred ($200.00) Dollars or less or for damage caused by Tenant,
other than normal wear and tear. Landlord shall be responsible for the
structural elements of the building. Further, Landlord shall be responsible to
pay for 15% of the maintenance of the yard area.

8. FIRST OPPORTUNITY TO PURCHASE:

         The Property is part of a larger parcel that includes a 25,000 square
foot building at 2657 Vernon Avenue (collectively referred to as "Parcel").
During the term of lease (including any extensions thereof), so long as Tenant
is not in default under Lease, Tenant ("Optionee") shall have the first
opportunity to purchase the Parcel pursuant to the following conditions (TIME
BEING OF THE STRICTEST ESSENCE):

         A. Landlord shall be free at any time to actively market Parcel.
However, Optionee shall have the first opportunity to purchase Parcel as
follows:

                  i) Landlord shall notify Optionee as to the terms and
conditions acceptable to the Landlord and shall submit to Optionee any other
material reasonably necessary for Tenant to make a decision on the purchase of
Parcel such as a copy of a Preliminary Title Report.

                  ii) Optionee shall have thirty (30) days to agree to purchase
Parcel on the same terms and conditions as set forth in writing to the Optionee.

                                      -2-
<PAGE>

                  iii) If Optionee does not elect to purchase Parcel under the
terms and conditions acceptable to Landlord, then Landlord may continue to
actively market Parcel and shall be free to accept any offer to purchase. Except
that if an offer to purchase is submitted to Landlord which is acceptable to
Landlord and said offer is either: a) less than ninety-five percent (95%) of the
purchase price as first submitted to optionee; or b) there is a substantial
detrimental (to Landlord) change in the other terms of the purchase as first
submitted to Optionee, a copy of such new bona fide purchase offer containing
such new acceptable price and/or terms shall be submitted by telecopier or
personal delivery and Optionee shall have an additional five (5) days after
receipt of the new acceptable purchase price and/or terms to agree to purchase
Parcel.

         B. If Landlord receives a bona fide offer to purchase Parcel, prior to
Landlord first offering Parcel to Optionee as set forth above, then:

                  i) Landlord will submit to Optionee a copy of said bona fide
purchase offer, as well as Landlord's proposed acceptance or counteroffer.

                  ii) Optionee shall have fifteen (15) days within which to
agree to purchase Parcel on the same terms and conditions as Landlord will
accept from said third party.

                  iii) In the event that the Optionee does not agree in writing
to purchase Parcel as provided above, Landlord shall be free to sell said Parcel
to the third party on substantially the same terms and conditions as submitted
to Optionee.

         C. The rights to purchase Parcel under this Paragraph 6 are personal to
Tenant and may not be transferred, sold or otherwise assigned, nor may such
rights be exercised by any sublessee, transferee or assignee of Lease (with or
without Landlord's consent), or any of these rights, and upon any such transfers
(whether by operation of law or otherwise), these rights shall lapse and be of
no further effect.

         D. Any sales or transfers among the partners and/or owners of the
Landlord, and their respective successors in interest, are excluded from the
terms of this Right of First Opportunity to Purchase. That is, this Right of
First Opportunity is applicable only to the sale or transfer of the fee interest
in the Parcel to a third party unrelated to the Landlord's partners and/or
owners, and their respective successors in interest.

9. ACCESS, YARD AND PLAN:

         Attached to the Lease will be the Mollenhauer, Higashi and Moore plan
("Plan"). There is not 135 feet rear access, as set forth in the Landlord
Broker's marketing material. The rear yard consists of 50 feet of fee and a
right to use the next northerly 50' for "pedestrian and vehicular traffic for
ingress and egress from the Property and for parking of such vehicles." In this
the most northerly 50' there is a right of access to the building to the north,
currently owned by David Karney, and to the 25,000 square foot building to the
west owned by Landlord. North of the northerly 50' easement there appears to be
another 20' where Landlord and Tenant has the right for "truck ingress, egress,
maneuvering and parking." A full title report is available to Tenant, and Tenant
is deemed to be aware of and to accept Property as described in such Title
Report.

                                      -3-
<PAGE>

10. ABATED RENT:

         Inconsideration of the improvements to Property to be made by Tenant
(see Addendum Rider 1), Landlord will reduce the rent, which includes the base
year taxes and insurance, for the first twelve (12) months of the Lease term to
the monthly sum of Twenty-One Thousand Nine Hundred and Sixteen Dollars and
Seventeen Cents ($21,916.17).

DATED: 5/3/94                           /S/ WILLIAM D. FELDMAN
                                        -----------------------------------
                                        "Landlord"

DATED: 4/17/94                          /S/ TIMOTHY G. WILSON
                                        -----------------------------------
                                        "Tenant"

                                      -4-
<PAGE>

                              OPTION TO EXTEND TERM

                                   LEASE RIDER

This Rider is attached to and made part of that certain Lease (the "Lease")
dated April 22, 1994 between VERNON ASSOCIATES (A California Partnership), as
Landlord, and _____________________________________, as Tenant, covering the
Property commonly known as 2727 E. Vernon Ave., Vernon, California (the
"Property"). The terms used herein shall have the same definitions as set forth
in the Lease. The provisions of this Rider shall supersede any inconsistent or
conflicting provisions of the Lease.

A. Option(s) to Extend Term.

         1. Landlord hereby grants to Tenant two option(s) (the "Option(s)") to
extend the Lease Term for additional term(s) of five (5) years each (the
"Extension(s)"), on the same terms and conditions as set forth in the Lease, but
at an increased rent as set forth below. Each Option shall be exercised only by
written notice delivered to Landlord at least one hundred twenty (120) days
before the expiration of the Lease Term or the preceding Extension of the Lease
Term, respectively. If Tenant fails to deliver Landlord written notice of the
exercise of an Option within the prescribed time period, such Option and any
succeeding Options shall lapse, and there shall be no further right to extend
the Lease Term. Each Option shall be exercisable by Tenant on the express
conditions that (a) at the time of the exercise, and at all times prior to the
commencement of such Extension, Tenant shall not be in default under any of the
provisions of this Lease and (b) Tenant has not been ten (10) or more days late
in the payment of rent more than a total of three (3) times during the Lease
Term and all preceding Extensions.

         2. Personal Options.

         The Option(s) are personal to the Tenant named in Section 1.03 of the
Lease or any Tenant's Affiliate described in Section 9.02 of the Lease. If
Tenant subleases any portion of the Property or assigns or otherwise transfers
any interest under the Lease to an entity other than a Tenant Affiliate prior to
the exercise of an Option (whether with or without Landlord's consent), such
Option and any succeeding Options shall lapse. If Tenant subleases any portion
of the Property or assigns or otherwise transfers any interest of Tenant under
the Lease to an entity other than a Tenant Affiliate after the exercise of an
Option but prior to the commencement of the respective Extension (whether with
or without Landlord's consent), such Option and any succeeding Options shall
lapse and the Lease Term shall expire as if such Option were not exercised. If
Tenant subleases any portion of the Property or assigns or otherwise transfers
any interest of Tenant under the Lease in accordance with Article 9 of the Lease
after the exercise of an Option and after the commencement of the Extension
related to such Option, then the term of the Lease shall expire upon the
expiration of the Extension during which such sublease or transfer occurred and
only the succeeding Options shall lapse.

<PAGE>

B. Calculation of Rent.

         The Base Rent during the Extension(s) shall be determined by one or a
combination of the following methods (INDICATE YOUR CHOICE UPON EXECUTION OF THE
LEASE):

                  1. Cost of Living Adjustment (Section B(1), below) |X|

                  2. Fair Rental Value Adjustment (Section B(2), below) |X|

                  3. Fixed Adjustment (Section B(3), below) [ ]

         1. Cost of Living Adjustment.

         The Base Rent shall be increased on the first day of the 31st month(s)
of each Extension() of the Lease Term (the "Rental Adjustment Date") by
reference to the index defined in Section 1.12(a) of the Lease or the substitute
index described in Section 3.02 of the Lease, as follows: The Base Rent in
effect immediately prior to the applicable Rental Adjustment Date (the
"Comparison Base Rent") shall be increased by the percentage that the Index has
increased from the month in which the payment of the Comparison Base Rent
commenced through the month in which the applicable Rental Adjustment Date
occurs. In no event shall the Base Rent be reduced by reason of such
computation. There are no minimums and no maximums to the increase of Index.

                                      -2-

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