Document:

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                                                                    Exhibit 10.7

                                 LEASE AGREEMENT

         1.    PARTIES.    THIS LEASE AGREEMENT ("Lease") is made as of January
1, 1991, by and between THE DU PONT MERCK PHARMACEUTICAL COMPANY, a Delaware
general partnership ("LANDLORD" or "Partnership") and E. I. DU PONT DE NEMOURS
AND COMPANY, a Delaware corporation ("TENANT").

         2.    LEASED PREMISES.    LANDLORD hereby leases to TENANT and TENANT
hereby rents from LANDLORD a portion of that certain building known as Building
No. 250 ("Building"), as more particularly shown and described on the drawing or
drawings attached hereto as Exhibit A and made a part hereof, being located
within LANDLORD'S Billerica facility situated in the County of Middlesex, State
of Massachusetts ("Shared Site"), together with all laboratory hoods and work
bench stations (and appurtenances to the foregoing but excluding detachable
biosafety cabinets) located therein and all other property located therein
which, by reason of intention, annexation, unity, attachment or adaptation for
particular use may fairly be deemed fixtures under applicable law ("Fixtures")
(all of the foregoing being hereinafter collectively referred to as the "LEASED
PREMISES"). During the term of this Lease, TENANT shall also have the right to
the use, in common with LANDLORD and others, of all common areas and facilities
located within the Building and on the Shared Site that are necessary or
desirable for the use and occupancy of the LEASED PREMISES ("Common Areas").

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         3.   TERM.    The term of this Lease shall commence on the date hereof
and shall end at midnight on the thirtieth (30th) anniversary of such date;
provided that this Lease may be renewed for such successive thirty (30) year
terms as the parties determine by mutual consent; and provided further, however,
that (i) this Lease may be terminated by TENANT at any time during its term upon
written notice given at least one (1) year in advance of the effective date of
termination in the event that TENANT determines to transfer its entire
operations conducted at the LEASED PREMISES to an independent location (provided
that this right shall not apply in a circumstance where this Lease is subject to
termination by LANDLORD or TENANT by reason of casualty or eminent domain under
paragraph 14 or 17), (ii) this Lease may be terminated by TENANT at any time
during its term upon written notice given at least one (1) year in advance of
the effective date of termination in the event that TENANT determines to
terminate its entire operations conducted at the LEASED PREMISES, and (iii) this
Lease may be terminated as provided in paragraphs 14, 16 and 17 hereof.

         4.    TERMINATION PAYMENT.    In the event this Lease is terminated
prior to its expiration at midnight on the thirtieth (30th) anniversary hereof
(or, if this Lease is renewed, prior to expiration of the then applicable
renewal term) in accordance with clause (i) of paragraph 3 hereof, LANDLORD
shall pay to TENANT the amount of the Termination Payment,

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determined as specified below. In the event this Lease is terminated by TENANT
in accordance with clause (ii) of paragraph 3 hereof, LANDLORD shall pay TENANT
the sum of one dollar ($1.00). The amount of any "Termination Payment" due
hereunder shall be an amount, calculated as of the effective date of
termination, equal to the net book value of this Lease on the books of the
TENANT, increased or decreased to the extent appropriate to reflect any increase
or decrease in the value of the Leased Premises that is attributable to any
improvements to the Leased Premises made or paid for by TENANT, with the amount
of such increase or decrease to be determined by the parties through good faith
negotiation.

         5.    RENT.

               (a)    Base Rent.    During the term hereof and commencing on the
date hereof, and thereafter on each yearly anniversary of the commencement date
(or on the next business day if such anniversary is not a business day), TENANT
shall pay to LANDLORD, as base rent, the sum of one dollar ($1.00) per year,
payable in advance.

               (b)    Additional Rent.    During the term hereof, TENANT shall
pay to LANDLORD, as additional rent, all additional charges (including, without
limitation, costs, reimbursements, taxes, fees and indemnification payments)
provided for hereunder, payable as herein specified with respect to each
additional charge. Additional rent hereunder does not include charges for
services provided by LANDLORD pursuant to

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the Administrative Services Agreement, dated as of January 1, 1991, by and
between LANDLORD and TENANT ("Administrative Services Agreement") (as further
referenced in paragraph 7 hereof) which services are being provided, and the
cost thereof will be calculated and charged, in accordance with the terms of the
Administrative Services Agreement.

               (c)    Tenant's Share of Common Costs.    It is the contemplation
of the parties that services relating to the use, maintenance and upkeep of
Common Areas shall be provided through the Administrative Services Agreement and
that the costs charged therefor shall be as provided therein. In the event any
such services are not so provided, it is the intent of LANDLORD and TENANT that
(i) each shall bear a pro rata share of costs attributable to the use,
maintenance and upkeep of Common Areas and (ii) LANDLORD shall by invoice give
written notice to TENANT of, and TENANT shall thereafter pay to LANDLORD within
fifteen (15) days of the date of each such invoice, as additional rent, TENANT'S
pro rata share of such Common Area costs. LANDLORD and TENANT hereby agree that
TENANT'S pro rata share of such costs is 22% ("TENANT'S SHARE"). (The foregoing
percentage represents TENANT'S SHARE based on TENANT'S occupancy of part of
Buildings 250, 500 and 600 and all of Building 400 as provided in this Lease and
the three leases between LANDLORD and TENANT, dated as of even date herewith,
covering space in such buildings not covered herein. LANDLORD and TENANT agree
that in the event any of

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the foregoing leases (including this Lease) should be terminated or the
premises covered thereby (or hereby) should be altered, LANDLORD and TENANT
shall determine in good faith what, if any, change should be made to TENANT'S
SHARE (under all such leases) and all such leases shall be amended to reflect
such determination.)

               (d)    Taxes and Special Assessments.    All real estate taxes,
charges, assessments and payments levied or assessed during the term of this
Lease by any public or governmental body on and allocable to the LEASED PREMISES
or which may be assessed or levied by virtue of any business or activity
conducted on the LEASED PREMISES by TENANT (or by the agents, invitees,
sublessees, or assignees of TENANT) or against any personal property, equipment
or fixtures in, on or about the LEASED PREMISES, including any imposition
imposed on LANDLORD in lieu of or in substitution for such real estate taxes,
charges, assessments or payments, will be charged and allocated to TENANT as a
part of the cost of JV Services provided to TENANT under the Administrative
Services Agreement.

               (e)    Other Taxes.    TENANT shall also reimburse LANDLORD,
within fifteen (15) days following the date of invoicing, for any and all
federal, state and local taxes (including any taxes payable on amounts to be
paid by TENANT to LANDLORD pursuant to this sentence) that may be payable by
LANDLORD or the partners of the Partnership in connection with TENANT'S payment
of base rent or additional rent hereunder

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including, without limitation, any gross receipts or sales tax, but excluding
federal and State of Delaware corporation income taxes and any other state or
local tax imposed on the overall net income of LANDLORD or the partners of the
Partnership.

               (f)    Utilities.    It is the contemplation of the parties that
utilities will be provided to the LEASED PREMISES and the occupants thereof as
services through the Administrative Services Agreement. In the event any
utilities are not so provided, but are (i) otherwise provided to the LEASED
PREMISES or the occupants thereof by LANDLORD or (ii) are provided by a third
party and the cost therefor is charged to LANDLORD, LANDLORD shall render an
invoice to TENANT, in the case of clause (i), charging the cost of any such
utilities determined in accordance with the provisions of subparagraph 5(h) and,
in the case of clause (ii), passing through the third party charges billed to or
payable by LANDLORD (which shall be allocated to TENANT either on a metered
basis or, if not metered, in accordance with the provisions of subparagraph
5(h)), and such invoice shall be payable within fifteen (15) days of its date.

               (g)    Cost of Funds.    In the event that LANDLORD advances
funds to a third party with respect to any item constituting additional rent
hereunder, TENANT will be charged, as a reimbursement to LANDLORD for its cost
of funds, the amount of 12% per annum (or such other rate as is from time to

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time designated by LANDLORD as its internal charge rate to its divisions or
other operational units for costs of funds, the "Capital Rate") of the amount
advanced for the period from the date such funds were advanced to the later of
the due date of the invoice for the subject item or the actual date of payment.

               (h)    Cost Methodology.    It is the intention of the parties
(i) that the charges to be paid by TENANT to LANDLORD hereunder with respect to
use and occupancy of the LEASED PREMISES shall include, on a fully allocated and
net basis, all costs incurred by LANDLORD associated with TENANT'S use or
occupancy of the LEASED PREMISES other than costs relating to services provided
under the Administrative Services Agreement, and (ii) that such charges, and the
method or basis of allocation of such charges, shall be substantially the same
as would be paid by one of LANDLORD'S own divisions, departments or other
organizational units if such division, department or other organizational unit
were occupying the LEASED PREMISES.

         6.    USE OF PREMISES.

               (a)    Permitted Uses.    Subject to the further provisions of
this paragraph 6, TENANT may use and occupy the LEASED PREMISES (i) for general
office and/or research, development and manufacturing of chemical and
biochemical research products (including the uses and purposes for which the
LEASED PREMISES were utilized by TENANT prior to the commencement of the term of
this Lease) and (ii) for any other legal purpose

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not incompatible with the Rules and Regulations (as defined in subparagraph
6(e)) and any other uses of the Building and the uses of buildings on the Shared
Site, which other legal purpose has been consented to in writing by LANDLORD
upon at least thirty (30) days advance written notice by TENANT (such consent
not to be unreasonably withheld or delayed, provided that, without limitation,
LANDLORD shall have no obligation to consent to any use which would (x) result
in any material unreimbursed expense being incurred by LANDLORD or (y) subject
LANDLORD (or other users of the Shared Site) to material permitting requirements
not otherwise applicable to the Shared Site).

               (b)    Access.    LANDLORD shall provide TENANT and its invitees
with reasonable ingress and egress to the LEASED PREMISES across LANDLORD'S
lands and properties, and LANDLORD shall provide TENANT, as a service pursuant
to paragraph 7 hereof, with parking on a basis consistent with parking provided
to other occupants of the Building and/or other buildings on the Shared Site.

               (c)    Occupancy of Premises.    TENANT shall not permit the
LEASED PREMISES to become or remain vacant or unoccupied for a period of time
exceeding six (6) months, except as may be necessary in connection with
alterations, improvements or replacements made pursuant to paragraphs 10 or 11
hereof. If the LEASED PREMISES constitute 100% of the Building, then during any
period of time that the LEASED PREMISES

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are vacant or unoccupied, TENANT, at its expense, shall cause qualified
personnel to be stationed in the LEASED PREMISES at such times as are reasonably
necessary to provide for the safety and protection of the LEASED PREMISES and
the contents thereof.

               (d)    Compliance With Laws.    TENANT shall comply with all
applicable federal, state, county and local laws, codes, ordinances, and
regulations, and with the rules or regulations of any applicable Local Board of
Underwriters with respect to use and occupancy of the LEASED PREMISES.

               (e)    Rules and Regulations.    TENANT shall comply with
LANDLORD'S rules and regulations applicable to the LEASED PREMISES and the
Shared Site, as from time to time in effect ("Rules and Regulations"), which
Rules and Regulations shall be consistent in all material respects with the
rules and regulations applicable to any occupants of the Building (other than
TENANT) and any occupants of any other premises on the Shared Site. A listing of
the current manuals of Rules and Regulations (true and complete copies of which
manuals have been provided to TENANT) is set forth on Exhibit B, attached hereto
and made a part hereof. LANDLORD shall provide TENANT reasonable advance notice
of all changes in LANDLORD'S Rules and Regulations, and LANDLORD shall provide
TENANT reasonable advance notice of, and a reasonable opportunity to consult
with LANDLORD on, any proposed change in LANDLORD'S Rules and Regulations which
change would have a material effect on

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TENANT'S operations conducted on the LEASED PREMISES. Notwithstanding such
consultation, however, LANDLORD'S good faith determination that any change in
the Rules and Regulations is necessary or desirable and should be made will be
conclusive and binding on TENANT and any and all other occupants of the Building
and any other premises on the Shared Site; provided, however, that any such
change in the Rules and Regulations will not unreasonably interfere with
TENANT'S permitted uses of the LEASED PREMISES as provided in subparagraph
6(a)(i) hereof.

               (f)    Certain Substances.    Any use, production, storage,
deposit or disposal of controlled, toxic, dangerous or hazardous substances or
pollutants, including nuclear fuel or wastes, by TENANT on any portion of the
LEASED PREMISES shall be performed or accomplished strictly in accordance with
all applicable laws and regulations and any applicable Rules and Regulations.
Unless otherwise agreed by LANDLORD, upon termination of this Lease (i) all such
substances or pollutants used, produced, stored, deposited or disposed of on
site by TENANT shall promptly be removed from the LEASED PREMISES and the LEASED
PREMISES shall promptly be remediated to the condition in which they were
provided to TENANT hereunder and (ii) in any circumstance where radioactive
materials have been handled by TENANT at the LEASED PREMISES, all areas of the
LEASED PREMISES where radioactive materials have been so handled shall promptly
be decommissioned (as defined at 10

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C.F.R. ss. 30.4) in a manner reasonably satisfactory to LANDLORD, so that the
residual radioactivity has been reduced to a level that permits release of such
area of the LEASED PREMISES for unrestricted use and termination of license (in
both cases in a manner consistent with all applicable requirements of law or
regulation and any applicable Rules and Regulations). In the event that
following termination of this Lease the LEASED PREMISES will continue to be
utilized by an entity properly licensed with the Nuclear Regulatory Commission
for purposes involving radioactive materials, LANDLORD and TENANT shall consult
concerning such matters with the purpose and intent of minimizing
decommissioning requirements hereunder (subject, nevertheless, to the
requirements of applicable laws, rules or regulations).

               (g)    Storage Tanks.    TENANT shall not bury or place any
underground storage tanks anywhere on the Shared Site, except with the prior
written consent of LANDLORD and, if consent is granted, only if and so long as
the placement, use and maintenance thereof are in accordance with any and all
applicable laws and regulations and any applicable Rules and Regulations. TENANT
shall be solely responsible for the removal of any underground storage tank
installed by it when and to the extent required by applicable laws or regulation
(or upon the termination of this Lease if requested by LANDLORD).

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         7.    SERVICES.    LANDLORD and TENANT have entered into the
Administrative Services Agreement which provides, inter alia, for the provision
of services in connection with the LEASED PREMISES. Notwithstanding any
provision of the Administrative Services Agreement to the contrary and unless
otherwise agreed by LANDLORD, (i) TENANT shall be required to obtain through
LANDLORD the JV Services identified on Exhibit C hereto so long as the same are
offered by LANDLORD under the Administrative Services Agreement and (ii) TENANT
shall not have the right to terminate the provision of such JV Services.

         8.    SIGNS.    No signs, advertisements or notices (other than those
required by law) shall be affixed to or placed upon any part of the LEASED
PREMISES by TENANT or anyone acting for or on behalf of TENANT, except in such
manner and of such size, design and color as shall be (i) consistent with the
signs utilized by LANDLORD on or in the Building or the vicinity of the LEASED
PREMISES or used by TENANT on or in the LEASED PREMISES prior to the
commencement date of this Lease and (ii) approved in advance in writing by
LANDLORD, which approval shall not be unreasonably withheld. TENANT shall remove
such sign or signs upon the termination of this Lease. Any defacement or damage
to the Building or LEASED PREMISES caused by such sign or signs or the
installation or removal thereof shall be repaired promptly by TENANT.

         9.    ASSIGNMENT AND SUBLETTING.    TENANT shall not assign, transfer,
mortgage, sublease, sublet or otherwise

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encumber or convey the LEASED PREMISES or any portion thereof, or any rights or
obligations under this Lease, without LANDLORD'S prior written consent which
consent may be withheld for good cause or no cause in the sole discretion of
LANDLORD; provided, however, that TENANT may (i) sublet the LEASED PREMISES upon
at least thirty (30) days advance written notice to LANDLORD to any Affiliate of
TENANT (as defined in the Master Agreement, dated October 15, 1990, among, inter
alia, LANDLORD and TENANT ("Master Agreement") or (ii) assign this Lease upon
LANDLORD'S prior written consent, upon at least sixty (60) days advance written
notice to LANDLORD, to any acquiror or purchaser of all or substantially all of
the business and assets of the division, department or other organizational unit
of TENANT conducting business at the LEASED PREMISES (whether by merger,
purchase and sale of assets or otherwise). LANDLORD may withhold its consent to
any such assignment if the proposed assignee (i) has inadequate financial
capability to perform the obligations of TENANT under this Lease, (ii) is an
entity engaged in an imaging agent's business having products which are in
direct competition with the business conducted by LANDLORD at the Shared Site or
(iii) is an entity having an uncorrected pattern of failure to comply in
material respects with federal or state, environmental, nuclear regulatory or
safety laws, rules or regulations in the conduct of its businesses (and cannot
provide assurances reasonably satisfactory to LANDLORD of its ability to comply
with

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the requirements of this Lease, including LANDLORD'S Rules and Regulations). Any
determination by LANDLORD not to consent to an assignment of this Lease because
a proposed assignee is claimed to be unacceptable under any of the foregoing
clauses (i)-(iii) shall be subject to arbitration pursuant to Article 11 of the
Master Agreement. In the event that TENANT proposes to assign this Lease or
sublease the LEASED PREMISES or any portion thereof, TENANT shall give to
LANDLORD written notice which notice shall set forth (i) the identity, business
and financial condition of the proposed assignee or subtenant, (ii) the terms
and conditions of the proposed assignment or sublease, and (iii) any other
relevant information reasonably requested by LANDLORD. LANDLORD'S granting of
consent to an assignment or sublease under this Lease on any one or more
occasions shall not constitute a waiver or modification of the requirements of
this paragraph 9, which must be satisfied with regard to each proposed
assignment or sublease.

         10.   ALTERATIONS.

               (a)    General Provisions.    TENANT shall have the right, at its
own expense to make such alterations, installations, changes and improvements in
and upon the LEASED PREMISES as may be necessary or desirable for its purposes,
provided that (i) such alterations, installations, changes and improvements
shall not change in any material respect the character of the LEASED PREMISES or
the Building or diminish the value of either, (ii) any construction relating to
such

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alterations, installations, changes and improvements shall be undertaken in such
a manner so as to protect all persons and property and so as not to interfere
unreasonably with the conduct of LANDLORD'S business in, or in the vicinity of,
the Building or the LEASED PREMISES, and (iii) prior to beginning construction
of any such alteration, installation, change or improvement, (x) TENANT shall
provide LANDLORD with proposed design and construction drawings, plans and
specifications and other documents reasonably requested by LANDLORD pertaining
thereto and (y) TENANT shall have requested and received LANDLORD'S written
approval thereto, which approval shall not be unreasonably withheld or delayed
(but may be conditioned on or subject to such requirements as LANDLORD may
reasonably impose based on the nature of construction proposed).

               (b)    Right of Removal.    Upon termination or expiration of
this Lease or at any time during the continuance hereof (but provided that no
Event of Default shall have occurred and be continuing hereunder), (i) TENANT
shall have the right to remove from the LEASED PREMISES any articles of personal
property, and (ii) except as otherwise agreed in writing by the parties, TENANT
shall have the right to remove from the LEASED PREMISES any alterations,
installations, changes, improvements or other property, including fixtures
(other than items constituting Fixtures on the commencement date of this Lease),
made or installed by TENANT, whether or not constituting or becoming a part of
the LEASED PREMISES and

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whether made or installed under paragraph 10(a) or otherwise, provided that, in
the case of both clause (i) and clause (ii) above, any damage caused by such
removal will be fully repaired by TENANT prior to surrender of the LEASED
PREMISES and the LEASED PREMISES shall be fully restored to the condition in
which they were provided to TENANT hereunder, ordinary wear and tear excepted.

               (c)    Obligation to Remove.    Except as otherwise agreed in
writing by the parties, upon termination or expiration of this Lease, (i)
LANDLORD shall have the right to require TENANT to remove from the LEASED
PREMISES all articles of property, whether fixtures or personalty, other than
any alterations, installations, changes or improvements made by it to the
LEASED PREMISES in accordance with the provisions of subparagraph 10(a) hereof
(or items constituting Fixtures on the commencement date of this Lease),
whether or not the same have become an actual part thereof, and any damage
caused by any such removal will be fully repaired by TENANT prior to the
surrender of the LEASED PREMISES and the LEASED PREMISES shall be fully restored
to the condition in which they were provided to TENANT hereunder, ordinary wear
and tear excepted, and (ii) in the event TENANT fails to remove any property
from the LEASED PREMISES when required to by LANDLORD in accordance with clause
(i) of this subparagraph 10(c), LANDLORD shall have the right to (x) remove,
transport and dispose of same (without taking title or ownership thereto) and
(y) fully

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repair any damage caused by such removal and fully restore the LEASED PREMISES
to the condition in which they were provided to TENANT hereunder, ordinary wear
and tear excepted, and TENANT shall indemnify and hold harmless LANDLORD for any
costs, expenses or liabilities whatsoever associated with such removal,
transportation and disposal and any such repair and restoration (other than to
the extent any such costs, expenses or liabilities arise from the gross
negligence, recklessness or willful misconduct of LANDLORD in performing such
activities).

               (d)    Abandonment.    Any alterations, installations, changes,
improvements or other property which TENANT has placed on the LEASED PREMISES
and not removed within sixty (60) days following the termination or expiration
of this Lease shall be deemed to have been abandoned by TENANT and shall become
the property of LANDLORD upon the termination or expiration of this Lease,
subject to LANDLORD'S rights to remove, transport and dispose of same (without
taking title or ownership thereto) as set forth in subparagraph 10(c) hereof.

               (e)    Compliance with Laws.    Any alterations, additions or
improvements made by TENANT or by LANDLORD shall be made in accordance with
applicable federal, state, county and local laws and ordinances and building
codes, rules and regulations.

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         11.   MAINTENANCE, REPAIRS, REPLACEMENTS AND IMPROVEMENTS.

               (a)    Routine.    In the event that routine maintenance and
repairs to the LEASED PREMISES, such as painting, replacement of glass and
routine maintenance of Building systems are neither a required service
identified on Exhibit C hereto nor otherwise provided by LANDLORD under the
Administrative Services Agreement, TENANT shall perform such routine maintenance
and repairs to the LEASED PREMISES. All such designated maintenance and repairs
performed by LANDLORD or TENANT as hereinabove provided shall be done in a good
and workmanlike manner and in timely fashion so as to maintain the LEASED
PREMISES in good order and repair. In the event that LANDLORD and TENANT agree
that TENANT shall, in addition, perform all or any portion of the routine
maintenance and repairs to the Building other than the LEASED PREMISES, all such
maintenance and repairs shall be done in a good and workmanlike manner and in
timely fashion. TENANT shall be responsible for the payment of the full cost of
all routine maintenance and repairs to the LEASED PREMISES and "TENANT'S Pro
Rata Portion" (as hereinafter defined) of routine maintenance and repairs to the
Building (provided that to the extent such routine maintenance and repairs are
provided by LANDLORD under the Administrative Services Agreement, the charges
therefor shall be calculated and paid in accordance with the terms of the
Administrative Services Agreement rather

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than hereunder). As used herein, the term "TENANT'S Pro Rata Portion" means, at
any time of calculation, the percentage derived by dividing the square footage
of usable space in the Building then leased to TENANT hereunder by the total
usable square footage of the Building. In this calculation, leased space, as
well as the remaining usable square footage of the Building, excludes common
areas such as entrance lobbies, common halls, conference rooms, auditoriums,
rest rooms, common storage areas, mechanical areas and the like.

               (b)    Extraordinary.    All non-routine improvements and
replacements to the LEASED PREMISES and to the Building and related systems
(other than alterations, installations, changes and improvements desired to be
made by TENANT under subparagraph 10(a)), such as replacement of Building
systems or structural repairs to the Building, shall be recommended by LANDLORD
to TENANT for TENANT'S approval, which approval shall not be unreasonably
withheld or delayed, and upon such approval, LANDLORD shall make such
improvements and replacements (without unreasonably interfering with TENANT'S
use of the LEASED PREMISES) with TENANT paying (i) TENANT'S Pro Rata Portion of
the cost thereof, if such improvements or replacements are made to the Building,
or (ii) the full amount of such cost, if such improvements or replacements are
made to the LEASED PREMISES (or with TENANT paying such other amount or
percentage as may be provided in the Administrative Services Agreement if such
improvements or replacements are

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provided as a service pursuant to paragraph 7 hereof); provided, however, that
LANDLORD shall not be required to seek or obtain TENANT'S consent to any
improvement or replacement hereunder which must be undertaken without delay to
avoid the imminent possibility of danger or damage to person or property; and
provided further that if the LEASED PREMISES constitute 100% of the Building,
TENANT may request that LANDLORD consent to TENANT performing any such
recommended improvement or replacement in accordance with proposed design and
construction drawings, plans and specifications provided by TENANT to LANDLORD,
which consent and approval shall not be unreasonably withheld or delayed. Upon
such consent and approval, if given, TENANT shall perform such improvement or
replacement consistent with approved design and construction drawings, plans and
specifications (without unreasonably interfering with LANDLORD'S use of the
Shared Site) with TENANT paying the full cost thereof.

               (c)    Site Improvements.    All capital Improvements to the
Shared Site shall be made at LANDLORD'S sole discretion. Prior to beginning any
such capital improvements that will benefit the LEASED PREMISES, LANDLORD will
give TENANT reasonable advance notice of, and shall consult with TENANT
concerning, such improvement, provided, however, that in no event shall TENANT'S
consent be required for LANDLORD to undertake such improvement. Unless otherwise
agreed, the cost of any such capital improvement shall be paid by LANDLORD,

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and, during the term of this Lease, a portion of LANDLORD'S yearly depreciation
cost allocable to such capital improvement, together with a charge to reimburse
LANDLORD for the cost of funds at the Capital Rate, shall be invoiced to TENANT
as an additional charge for the services provided pursuant to paragraph 7 hereof
related to such capital improvement (such as, for example and as may be
applicable, a grounds service for access roads or parking, security services, or
utility services such as steam, cooling water, sewer or electricity). The
portion of such depreciation cost of such improvement to be charged to TENANT
shall be equal to the total yearly depreciation cost of such improvement
multiplied by the percentage of the benefit of such improvement that will be
conferred on the LEASED PREMISES relative to any other premises benefited
thereby. LANDLORD and TENANT shall negotiate in good faith to determine such
percentage of the benefit that will be conferred on the LEASED PREMISES (the
parties anticipating that absent special circumstances such percentage shall be
determined in a manner consistent with LANDLORD'S usual allocation procedures
for the Shared Site). The above-referenced cost of funds charge shall be
calculated monthly in arrears by multiplying (i) LANDLORD'S original cost of the
capital improvements, less accumulated depreciation through the end of the prior
month, times (ii) the percentage determined in accordance with the prior
sentence, times (iii) 1/12th of the yearly Capital Rate.

                                      -21-
<PAGE>   22

         12.    LIABILITY.    LANDLORD in no event shall be liable for any
damage or injury to TENANT or any agent, employee or invitee of TENANT, or to
any person or persons coming upon the LEASED PREMISES in connection with the
occupancy by TENANT or otherwise, or to any goods, chattels, or other property
of TENANT or any other person or persons which may during the term of this Lease
be located in LEASED PREMISES, which damage or injury has been caused or
contributed to by water, rain, snow, breakage of pipes, leakage, or by any other
cause beyond LANDLORD'S control, except when caused by the gross negligence,
recklessness or willful misconduct of LANDLORD, its invitees, agents or
employees.

         13.    ACCESS TO LEASED PREMISES.    TENANT shall permit LANDLORD to
enter upon the LEASED PREMISES at all times in an emergency and otherwise at all
reasonable times upon reasonable notice for the purpose of inspecting the same
and/or providing services pursuant to paragraph 7 hereof and/or maintenance or
making repairs pursuant to subparagraph 11(a) hereof and/or making improvements
or replacements pursuant to subparagraph 11(b) hereof and/or making any repairs
or rebuilding under paragraph 14 hereof.

         14.    CASUALTY.

                (a)    General Provisions.    Subject to the provisions of
subparagraph 15(c) hereof, TENANT shall bear all risk of loss with respect to
any damage of any nature resulting from any casualty damage to the LEASED
PREMISES or the con-

                                      -22-
<PAGE>   23

tents thereof (including, without limitation, any damage resulting from a
casualty of the nature insured against under a comprehensive policy of property
insurance, with extended coverage riders).

                (b)    Non-Material Casualty.    In the event that fire or other
casualty damages the LEASED PREMISES to an extent that does not materially
interfere with TENANT'S use thereof, LANDLORD shall repair the LEASED PREMISES
which repair shall be treated as a non-routine improvement or replacement under
subparagraph 11(b) hereof and the cost of such repair shall be allocated as set
forth therein.

                (c)    Material Casualty.    In the event that fire or other
casualty damages the LEASED PREMISES to an extent that materially interferes
with TENANT'S use thereof, and the LEASED PREMISES constitute 75% or more of the
Building, TENANT may request, by written notice given within sixty (60) days of
the occurrence of the fire or other casualty, that LANDLORD rebuild or repair
the LEASED PREMISES and LANDLORD shall comply with such request provided that
(i) TENANT shall pay 100% of the cost of such rebuilding or repair and (ii)
LANDLORD shall conduct such rebuilding or repair in a reasonable manner which
does not unreasonably interfere with the use by LANDLORD or others of the site
in the vicinity of the Building. If TENANT elects to have the LEASED PREMISES
rebuilt or repaired pursuant to this subparagraph 14(c), at the completion
thereof, the LEASED PREMISES shall constitute 100% of the

                                      -23-
<PAGE>   24

Building (or its replacement), irrespective of what percentage of the Building
the LEASED PREMISES constituted prior to such rebuilding or repair, and LANDLORD
and TENANT shall determine in good faith what, if any, change should be made to
TENANT'S SHARE both under this Lease and under the other leases referenced in
subparagraph 5(c), and all such leases shall be amended to reflect such
determination. The right of TENANT to cause the LEASED PREMISES to be rebuilt
pursuant to the provisions of this paragraph 14(c) shall be subject to the
approval by LANDLORD of TENANT'S proposed design and construction drawings,
plans and specifications and related documents and contracts, which approval
shall not be unreasonably withheld (so long as the same provide for
reconstruction which is substantially equivalent to the pre-existing structure
or reconstruction which is compatible in character, size, style and building
material to the other structures and improvements of LANDLORD or others on the
Shared Site).

                (d)    Termination of Lease.    In the event that fire or other
casualty damages the LEASED PREMISES to an extent that materially interferes
with TENANT'S use thereof and either (i) the LEASED PREMISES constitute less
than 75% of the Building or (ii) the LEASED PREMISES constitute 75% or more of
the Building and TENANT does not request LANDLORD to rebuild or repair the
LEASED PREMISES in accordance with sub-paragraph 14(c) hereof, this Lease shall
terminate in the case of clause (i) above, upon the occurrence of such casualty
and

                                      -24-
<PAGE>   25

in the case of clause (ii) above, upon the expiration of the period during which
TENANT may request LANDLORD to rebuild or repair the LEASED PREMISES and no
additional rent relating to the unusable portion of the LEASED PREMISES from the
time of such casualty to termination of this Lease shall be due except for rent
for services that continue to be utilized.

         15.    INDEMNITY.

                (a)    TENANT Indemnity.    Except as otherwise herein provided,
TENANT, promptly following demand by LANDLORD, shall indemnify and hold LANDLORD
safe and harmless from and against any and all losses, costs, damages, claims,
actions or liabilities (i) on account of the death of or injury to any person or
persons or the damage to or destruction of any property arising from or growing
out of TENANT'S use and occupancy of the LEASED PREMISES or (ii) resulting from
any failure by TENANT to perform or observe any covenant or agreement to be
performed or observed by TENANT under this Lease, except to the extent, if any,
that such losses, costs, damages, claims, actions or liabilities are caused by
the gross negligence, recklessness or willful misconduct of LANDLORD.

                (b)    LANDLORD Indemnity.    Except as otherwise herein
provided, LANDLORD, promptly following demand by TENANT, shall indemnify and
hold TENANT safe and harmless from and against any and all losses, costs,
damages, claims, actions or liabilities (i) on account of the death of or

                                      -25-
<PAGE>   26

injury to any person or persons or the damage to or destruction of any property
arising from or growing out of LANDLORD'S use and occupancy of premises in the
Building or the Shared Site other than the LEASED PREMISES or (ii) resulting
from any failure by LANDLORD to perform or observe any covenant or agreement to
be performed or observed by LANDLORD under this Lease, except to the extent, if
any, that such losses, costs, damages, claims, action or liabilities are caused
by the gross negligence, recklessness, or willful misconduct of TENANT. Nothing
in this subparagraph 15(b) is intended to limit or otherwise affect LANDLORD'S
indemnity obligations to TENANT relating to environmental matters as provided in
Section 8.3 of the Asset Contribution Agreement.

                (c)    Indemnities Relating to Casualty Damage.
Notwithstanding the foregoing provisions of this paragraph 15 and any provisions
of paragraph 14 or paragraph 19 to the contrary; (i) TENANT shall not be liable
to LANDLORD for casualty damage to or a casualty destruction of the LEASED
PREMISES or the contents thereof, but shall be responsible to LANDLORD for the
costs of repair of damage to, or the replacement cost of, any portions of the
Building and the Shared Site which do not constitute a part of LEASED PREMISES,
and the contents thereof, to the extent that the same are damaged or destroyed
by casualty by reason of the acts or omissions of TENANT (or any agent, employee
or invitee of TENANT), and (ii) LANDLORD shall be responsible to TENANT for the
costs of

                                      -26-
<PAGE>   27

repair of damage to, or the replacement cost of, any portions of the LEASED
PREMISES, and the contents thereof, which are damaged or destroyed by casualty
by reason of the acts or omissions of LANDLORD (or any agent, employee or
invitee of LANDLORD) in connection with the use and occupancy of portions of the
Building and Shared Site not constituting a part of the LEASED PREMISES.

         16.    EVENTS OF DEFAULT.

                (a)    General.    If TENANT fails (i) to pay any base rent or
additional rent promptly when due and payable hereunder, and shall continue in
default for a period of ten (10) days after written notice is given by LANDLORD,
or (ii) promptly to perform or observe in all material respects any other
covenant or agreement set forth in subparagraphs 6(a), 6(d), 6(e), 6(f), 6(g),
or paragraphs 9, 10 or 13, of this Lease in accordance with the terms hereof and
shall continue in default for a period of sixty (60) days after written notice
thereof by LANDLORD of default and demand of performance or compliance, and if
such failure to perform or observe any such covenants or agreements referenced
in this clause (ii) has had or is likely to have a material adverse effect on
the LEASED PREMISES or the Building, LANDLORD or the business or operations of
LANDLORD or others at the Shared Site-then, if so declared in writing by
LANDLORD, such event or circumstance shall constitute an "Event of Default." if
any such default shall occur, other than in the payment of money,

                                      -27-
<PAGE>   28

which cannot with due diligence be cured within such period of sixty (60) days
from and after the giving of notice as aforesaid, and TENANT commences to cure
such default and proceeds diligently and with reasonable dispatch to take such
steps and do such work as may reasonably be required to cure such default, then
LANDLORD shall not have the right to declare an Event of Default.

                (b)    Notice and Arbitration.    LANDLORD shall give TENANT at
least ten (10) business days' advance written notice of its intent to declare an
Event of Default based on any of the events or circumstances referenced in
subparagraph 16(a), in which case TENANT may, by written notice to LANDLORD
given within such ten (10) business day period, elect to submit to arbitration
pursuant to Article 11 of the Master Agreement the issue whether an event or
circumstance justifying the declaration of an Event of Default has occurred. If
an election to arbitrate is so made, LANDLORD shall not have the right to
declare an Event of Default unless and until its right to do so is upheld in
such arbitration proceedings.

                (c)    Additional Events of Default.    Any of the following
shall also constitute an Event of Default: TENANT is (i) dissolved and wound up
in accordance with law (unless this Lease is assigned to a purchaser of the
business and assets of TENANT in accordance with paragraph 9 of this Lease),
(ii) TENANT is adjudicated a bankrupt, (iii) TENANT institutes proceedings for a
reorganization or for an arrange-

                                      -28-
<PAGE>   29

ment under the bankruptcy laws of the United States codified as Title 11 of the
United States Code ("Bankruptcy Act") or (iv) an involuntary petition in
bankruptcy is filed against TENANT under the Bankruptcy Act, which is not
dismissed within ninety (90) days.

                (d)    Remedies.    Upon the occurrence of an event or
circumstance constituting an Event of Default under subparagraph 16(c), or the
declaration of an Event of Default under subparagraph 16(a) (subject to the
requirements of subparagraph 16(b)), LANDLORD (i) shall have the right, upon
the giving of ten (10) days' advance written notice to TENANT, to terminate this
Lease and (ii) shall have all other rights and remedies provided by law.
Notwithstanding the termination of this Lease following occurrence of an Event
of Default, TENANT shall have the right, within sixty (60) days following the
effective date of termination, to elect to receive a termination payment under
paragraph 4 of this Lease (as if this Lease had been terminated by TENANT
pursuant to clause (i) of paragraph 3) in the event TENANT determines to
transfer its entire operations conducted at the LEASED PREMISES to an
independent location and thereafter does so within a reasonable period of time;
provided, however, that the termination payment otherwise due under paragraph 4
shall be reduced by the amount of any damages suffered by LANDLORD as a
consequence of the occurrence of the Event of Default, including, without
limitation, any expenses incurred by LANDLORD in returning the

                                      -29-
<PAGE>   30

LEASED PREMISES to the return condition required under paragraph 19 of this
Lease (the reasonableness of any such expenses being a matter subject to
arbitration pursuant to paragraph 23 hereof).

         17.    EMINENT DOMAIN.    If the whole or any part of the LEASED
PREMISES shall be taken by any public authority under the power of eminent
domain such as to materially interfere with TENANT'S use thereof, then the terms
of this Lease shall cease on the part so taken on the date possession of that
part is surrendered and TENANT shall receive the portion of any compensation
paid by such public authority for the taking of the LEASED PREMISES, provided
that if any part of the LEASED PREMISES so taken is used by TENANT in common
with LANDLORD or others, the compensation paid with respect to such part shall
be equitably divided between LANDLORD and TENANT as determined by LANDLORD and
TENANT in good faith. From the date possession is surrendered to part of the
LEASED PREMISES as specified in the preceding sentence, TENANT shall have the
right either (i) to cancel this Lease and declare the same null and void and to
be entitled to any unearned rent paid or credited in advance, or (ii) to
continue in possession of the remainder of the LEASED PREMISES under the terms
herein provided, except that the rent and TENANT'S SHARE (both under this LEASE
and under the other leases referenced in subparagraph 5(c)) shall be equitably
adjusted by LANDLORD and TENANT as may be appropriate in light of the portions
of the Building taken in such proceeding.

                                      -30-
<PAGE>   31

         18.    SUBORDINATION.    As requested by LANDLORD from time to time,
TENANT shall subordinate its interest in the LEASED PREMISES to the lien,
operation and effect of mortgages as created by LANDLORD, provided that such
subordination shall include or be accompanied by a nondisturbance agreement
under which the mortgagee agrees that in the event of a mortgage foreclosure or
conveyance in lieu of foreclosure or otherwise, this Lease shall continue as a
Lease between LANDLORD'S successors as landlord and TENANT as tenant with the
same force and effect as if LANDLORD'S successors and TENANT had entered into a
Lease containing the same terms, covenants and conditions as those contained in
this Lease including the rights of renewal thereof for a term equal to the
unexpired term of this Lease.

         19.    SURRENDER.    On or before the date of expiration or prior
termination of this Lease, TENANT shall peaceably surrender the LEASED PREMISES,
and the LEASED PREMISES shall be turned over to LANDLORD (i) in good order and
condition, (ii) in compliance with the conditions and requirements specified in
subparagraphs 6(f), 6(g), 10(b), and 10(c) and paragraph 8 hereof and (iii)
fully repaired and restored to the condition in which they were provided to
TENANT hereunder, ordinary wear and tear excepted (subject, nevertheless, to any
applicable provisions of subparagraph 10(b) and paragraphs 14 and 17 hereof and
without obligation to remove any alterations, installations, changes or
improvements made pursuant to

                                      -31-
<PAGE>   32

the provisions of paragraph 10(a) hereof. Any provision contained herein
requiring that the LEASED PREMISES be "restored" to a prior condition shall be
construed to require that the LEASED PREMISES be restored physically and
functionally as fully as is practicable under the circumstances, the parties
acknowledging that, for example, existing fixtures or installations may become
unavailable at a future date and that mutually agreed upon substitutions
therefor would need to be made. Any personal property remaining within the
LEASED PREMISES after termination shall be treated as provided in paragraph 10
hereof.

         20.    QUIET ENJOYMENT.    LANDLORD warrants its right to create the
leasehold created herein and covenants that TENANT, upon paying the rent and all
other sums and charges to be paid by it under this Lease, and observing and
keeping all covenants, agreements and conditions of this Lease on its part to be
kept, shall have peaceful, quiet and uninterrupted possession of the LEASED
PREMISES during the term of this Lease, including renewal term.

         21.    SUCCESSION.    This Lease shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted
assigns.

         22.    MAINTENANCE OF RECORDS/INSPECTION.    LANDLORD shall maintain or
cause to be maintained in the ordinary course of business, books and records
relating to its calculation of rend due hereunder and the services provided by
it

                                      -32-
<PAGE>   33

pursuant to this Lease, and with respect to the calculation of the costs
therefor. LANDLORD shall make such records available for inspection by TENANT
during regular business hours and upon reasonable notice (or by an independent
accountant or other designee of TENANT to which LANDLORD does not have
reasonable objection); provided, however, that any such inspection by TENANT
shall not occur more than once each year and shall be conducted in manner which
does not interfere unreasonably with the operation of the day-to-day business
affairs of LANDLORD.

         23.    ARBITRATION.    In the event that there is any dispute between
LANDLORD and TENANT concerning the correctness of any charges payable as
additional rent hereunder, either party may, if such dispute is not resolved
within 45 days after delivery of written notice thereof to the other party,
submit such dispute to arbitration as provided below. In connection with such
dispute, a "Big Six" accounting firm acceptable to the parties shall be engaged
to resolve the dispute, except that if the parties cannot reach agreement on the
selection of such accounting firm or if such accounting firm cannot resolve such
dispute within 30 business days then the matter shall be arbitrated pursuant to
Article 11 of the Master Agreement, and the Arbitrator (as defined therein) may
select an accounting firm to assist it in making a final determination. The
parties shall have the right to advise the arbitrator of any objection they may
have to the selection of

                                      -33-
<PAGE>   34

the accounting firm. The fees and reasonable expenses of the accounting firm
shall be divided equally between LANDLORD and TENANT, except that if the
procedures of Article 11 of the Master Agreement are used, all fees and
expenses, including those of the accounting firm, if any, shall be allocated as
provided for therein. In the event there is any dispute between the parties
concerning any matter under this Lease other than the correctness of charges
constituting additional rent hereunder, such dispute shall be arbitrated
pursuant to Article 11 of the Master Agreement.

         24.    RELATED PROVISIONS.    Reference is made to the Master Agreement
for certain provisions, including but not limited to the giving of notice and
governing law, that are applicable to this Lease.

                                      -34-
<PAGE>   35

                  IN WITNESS WHEREOF, the parties hereto have caused this Lease
to be executed as of the day and year first above written.

Signed, Sealed and
Delivered in the
Presence of:

<TABLE>
<CAPTION>
<S>                                         <C>
                                            THE DU PONT MERCK PHARMACEUTICAL
                                                  COMPANY

                                            By    Calgon Corporation,
                                                  a Partner

Witness: /s/ [signature]                    By:    /s/ Francis H. Spiegel, Jr.     (SEAL)
        --------------------------                -------------------------------
                                                  Francis H. Spiegel, Jr.
                                                  Senior Vice President

                                            By    E. I. du Pont de Nemours
                                                  and Company, a Partner

Witness: /s/ [signature]                    By:    /s/ [signature]               (SEAL)
        --------------------------                -------------------------------
                                                  Title:   Senior Vice President - DuPont
                                                           Finance and Chief Finance Officer

                                            E. I. DU PONT DE NEMOURS AND
                                                  COMPANY

Witness: /s/ [signature]                    By:    /s/ [signature]               (SEAL)
        --------------------------                -------------------------------
                                                  Title:   Senior Vice President - DuPont
                                                           Finance and Chief Finance Officer
</TABLE>

                                      -35-
<PAGE>   36

                                   ASSIGNMENT

                  1.   PARTIES.   This Assignment, made this 30th day of June,
1997, is between E. I. DU PONT DE NEMOURS AND COMPANY, a Delaware corporation,
of Wilmington, Delaware 19898, hereinafter referred to as "ASSIGNOR", and NEN
Life Science Products, Inc., a Delaware corporation, with a principal place of
business at 549 Albany Street, Boston, Massachusetts 02116 hereinafter referred
to as "ASSIGNEE".
                  2.    ASSIGNMENT.    In consideration of the sum of One Dollar
($1.00) and other valuable consideration in hand paid, the receipt of which is
hereby acknowledged, ASSIGNOR does hereby sell, assign, transfer and set over
unto ASSIGNEE that certain Lease Agreement entered into between ASSIGNOR, as
TENANT, and THE DU PONT MERCK PHARMACEUTICAL COMPANY, as LANDLORD, dated January
1, 1991, covering certain real property located at Building 250 within
LANDLORD's Billerica facility situated in the County of Middlesex, State of
Massachusetts, and being more particularly described therein, a copy of said
Lease being attached hereto and made a part hereof.
                  3.    ACCEPTANCE AND ASSUMPTION.    ASSIGNEE, for itself, its
successors and assigns, hereby accepts said Assignment and assumes all of the
obligations imposed upon ASSIGNOR under the terms and conditions contained in
said Lease, as fully and to the same extent as if they had originally been named
as TENANT therein in place and stead of ASSIGNOR and agrees to be bound by and
to perform,

<PAGE>   37

fulfill and carry out all of the conditions, agreements and provisions to be
performed, fulfilled and carried out by the TENANT under said Lease.
                  4.    CONSENT.    Landlord, in consideration of the above
Assignment and of the assumption of obligation under the Agreement by ASSIGNEES,
does hereby consent to such Assignment and effective with the date hereof.

                  IN WITNESS WHEREOF, the parties hereto have executed this
Assignment as of the date and year first above written.

                                    ASSIGNEE:

                                    NEN LIFE SCIENCE PRODUCTS, INC.

                                    By: /s/ [signature]
                                       ------------------------------------

                                    ASSIGNOR:

                                    E. I. DU PONT DE NEMOURS AND COMPANY

                                    By: /s/ [signature]
                                       -------------------------------------

                                    LANDLORD:

                                    THE DU PONT MERCK PHARMACEUTICAL COMPANY

                                    By: /s/ [signature]
                                       ------------------------------------<PAGE>

                                     WARRANT

         THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
         AS AMENDED, OR ANY STATE SECURITIES LAWS. THIS WARRANT HAS BEEN
         ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, ASSIGNED, PLEDGED,
         HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A PRIOR
         EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS
         AMENDED, OR A PRIOR OPINION OF COUNSEL TO THE COMPANY OR SUCH OTHER
         COUNSEL AS SHALL BE REASONABLY SATISFACTORY TO THE COMPANY STATING THAT
         REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR STATE SECURITIES LAWS.

                             SOULFOOD CONCEPTS, INC.
                             A Delaware Corporation

               WARRANT TO PURCHASE 188,241 SHARES OF COMMON STOCK,
                            PAR VALUE $.003 PER SHARE

               VOID AFTER 5:00 P.M. EASTERN TIME ON JULY 31, 2003

         This certifies that, for value received, Commonwealth Associates (the
"Warrant Holder"), is entitled, subject to the terms and conditions hereof, to
purchase from Soulfood Concepts, Inc. (the "Company"), at any time or from time
to time subject to the vesting provisions of Section 1(b) below, but in any
event, on or before July 31, 2003, up to 188,241 shares of common stock of the
Company, par value $.003 per share ("Common Stock"), at an exercise price of
$.01 per share, subject to adjustment as hereinafter provided (the "Exercise
Price"), and to receive a certificate or certificates for the Common Stock so
purchased pursuant to and subject to the terms and conditions set forth below.

                  This Warrant is being purchased pursuant to the Agreement
dated February 10, 1997 between the Warrant Holder and the Company.

                  1. (a) This Warrant may be exercised in whole or in part at
any time, or from time to time, subject to the vesting provisions of Section
1(b) below, by delivery and surrender to the Company, subject to Section 2
below, of this Warrant and a subscription form substantially similar to that
attached to this Warrant as Exhibit A duly executed by the Warrant Holder at the
offices of the Company at 630 Ninth Avenue, Suite 310, New York, New York 10036,
accompanied by payment in full, in lawful money of the United States, or by
certified or bank check, or postal or express money order payable in United
States dollars to the order of the Company, of the Exercise Price for each share
of Common Stock as to which this Warrant is being exercised on or before 5:00
P.M. Eastern time on July 31, 2003, after which time this Warrant shall be void.

                                        1
<PAGE>

                  (b) This Warrant shall vest at the rate of thirty-three and
one third percent (33 1/3%) on each vesting date indicated below and may be
exercised by the Warrant Holder with respect to the Common Stock as follows:

<TABLE>
<CAPTION>
                                       Percentage
                                      Exercisable of                       Exercise
         Vesting Date:              Total Option Grant                 Price Per Share
         ------------               ------------------                 ---------------
         <S>                        <C>                                <C>
         July 31,  1999             33 1/3% (62,747) Shares                 $ .01
         July 31,  2000             33 1/3% (62,747) Shares                 $ .01
         January 31, 2001           33 1/3% (62,747) Shares                 $ .01
</TABLE>

         2. (a) Upon the exercise of this Warrant, in full, the Company shall,
or shall direct its transfer agent to, issue to the Warrant Holder certificates
for the total number of shares of Common Stock issuable on the date of such
exercise pursuant to the terms of this Warrant in such denominations as are
required by the Warrant Holder, and the Company shall, or shall direct its
transfer agent to, thereupon deliver such certificates to or in accordance with
the instructions of the Warrant Holder.

            (b) In the event that the Warrant Holder shall exercise this Warrant
with respect to less than all of the shares of Common Stock that may be
purchased under the terms of this Warrant, the Company shall, or shall direct
its transfer agent to, issue to the Warrant Holder certificates for the shares
of Common Stock for which this Warrant is being exercised in such denominations
as are required for delivery to the Warrant Holder, and the Company shall, or
shall direct its transfer agent to, thereupon deliver such certificates to or in
accordance with the instructions of the Warrant Holder, and the Company shall
issue to the Warrant Holder a new Warrant, duly executed by the Company, in form
and substance identical to this Warrant for the balance of the shares of Common
Stock then issuable pursuant to the terms of this Warrant.

            (c) Notwithstanding anything to the contrary contained herein,
neither the Company nor its transfer agent shall be required to issue any
fraction of a share of Common Stock in connection with the exercise of this
Warrant, and the Company shall, upon exercise of this Warrant in whole or in
part, issue the largest number of whole shares of Common Stock to which this
Warrant is entitled upon such full or partial exercise and shall return to the
Warrant Holder the amount of the Exercise Price paid by the Warrant Holder in
respect of any fractional share.

         3. The Warrant Holder, as such, shall not be entitled to vote or
receive dividends or be deemed the holder of shares of Common Stock for any
purpose, nor shall anything contained in this Warrant be construed to confer
upon the Warrant Holder, as such, any of the rights of a shareholder of the
Company including, without limitation, any right to vote, give or

                                       2
<PAGE>

withhold consent to any action by the Company (whether upon the
recapitalization, issue of stock, reclassification of stock, consolidation,
merger, conveyance or otherwise), receive notice of meetings or other action
affecting shareholders, receive dividends or subscription rights, or otherwise,
until this Warrant shall have been exercised; provided, however, that any
exercise of this Warrant, in whole or in part, on any date when the stock
transfer books of the Company shall be closed shall constitute the person or
persons in whose name or names the certificate or certificates for such shares
of Common Stock are to be issued as the record holder or holders thereof for all
purposes at the opening of business on the next succeeding day on which such
stock transfer books are open (the "Opening Date"), and this Warrant shall not
be deemed to have been exercised, in whole or in part, as the case may be, until
the Opening Date for the purpose of determining entitlement to dividends on the
Common Stock, and that the Exercise Price of this Warrant shall be the Exercise
Price in effect at the Opening Date.

         4. The Exercise Price shall be subject to adjustment as follows:

            (a) In case the Company shall, after the date hereof, (i) pay a
stock dividend or make a distribution in shares of its capital stock (whether
shares of its Common Stock or of capital stock of any other class), (ii)
subdivide its outstanding shares of Common Stock, (iii) combine its outstanding
shares of Common Stock into a smaller number of shares, or (iv) issue by
reclassification of its shares of Common Stock any shares of capital stock of
the Company, the Exercise Price in effect immediately prior to such action shall
be adjusted so that the holder of this Warrant thereafter surrendered for
exercise shall be entitled to receive an equivalent number of shares of capital
stock of the Company which he would have owned immediately following such action
had this Warrant been exercised immediately prior thereto. Any adjustment made
pursuant to this subsection (a) shall become effective immediately after the
record date in the case of a dividend or distribution and shall become effective
immediately after the effective date in the case of a subdivision, combination
or reclassification.

            (b) Whenever the Exercise Price is adjusted as provided in Section
4(a) herein, the Company will promptly mail to the Warrant Holder a certificate
of the Company's Treasurer or Chief Financial Officer setting forth the Exercise
Price as so adjusted and a brief statement of facts accounting for such
adjustment.

            (c) Irrespective of any adjustment or change in the Exercise Price
and the number of shares actually purchasable under this Warrant, this Warrant
may continue to express the Exercise Price per share as expressed upon this
Warrant when initially issued.

         5. (a) In case of any consolidation with or merger of the Company with
or into another corporation (other than a merger or consolidation in which the
Company is the surviving or continuing corporation), or in case of any sale,
lease or conveyance to another corporation of the property and assets of any
nature of the Company as an entirety or substantially

                                        3
<PAGE>

as an entirety, such successor, leasing, or purchasing corporation, as the case
may be, shall (i) execute with the Warrant Holder an agreement providing that
the Warrant Holder shall have the right thereafter to receive upon exercise or
conversion of this Warrant solely the kind and amount of shares of stock and
other securities, property, cash, or any combination thereof receivable upon
such consolidation, merger, sale, lease, or conveyance by a holder of the number
of shares of Common Stock for which this Warrant might have been exercised
immediately prior to such consolidation, merger, sale, lease, or conveyance
(including shares of Common Stock as to which this Warrant may become
exercisable in the future). Such agreement shall provide for adjustments which
shall be as nearly equivalent as practicable to the adjustments in Section 4.

         (b) In case of any reclassification or change of the shares of Common
Stock issuable upon exercise of this Warrant (other than a change in par value
or from no par value to a specific par value, or as a result of a subdivision or
combination, but including any change in the shares into two or more classes or
series of shares), or in case of any consolidation or merger of another
corporation into the Company in which the Company is the continuing corporation
and in which there is a reclassification or change (including a change to the
right to receive cash or other property) of the shares of Common Stock (other
than a change in par value, or from no par value to a specified par value, or as
a result of a subdivision or combination, but including any change in the shares
into two or more classes or series of shares), the Warrant Holder shall have the
right thereafter to receive upon exercise of this Warrant solely the kind and
amount of shares of stock and other securities, property, cash, or any
combination thereof receivable upon such reclassification, change,
consolidation, or merger by a holder of the number of shares of Common Stock for
which this Warrant might have been exercised immediately prior to such
reclassification, change, consolidation, or merger (including shares of Common
Stock as to which this Warrant may become exercisable in the future).
Thereafter, appropriate provision shall be made for adjustments which shall be
as nearly equivalent as practicable to the adjustments in Section 4.

         (c) The above provisions of this Section 5 shall similarly apply to
successive reclassifications and changes of shares of Common Stock and to
successive consolidations, mergers, sales, leases, or conveyances.

         (d) In case at any time the Company shall propose

             (i) to pay any dividend or make any distribution on shares of
Common Stock in shares of Common Stock or make any other distribution (other
than regularly scheduled cash dividends which are not in a greater amount per
share than the most recent such cash dividend) to all holders of Common Stock;
or

             (ii) to issue any rights, warrants, or other securities to all
holders of Common Stock entitling them to purchase any additional shares of
Common Stock or any other rights, warrants, or other securities; or

                                        4
<PAGE>

             (iii) to effect any reclassification or change of outstanding
shares of Common Stock, or any consolidation, merger, sale or lease of
substantially all of the assets, of the Company;

             (iv) to effect any liquidation, dissolution, or winding-up of the
Company.

then, and in any one or more of such cases, the Company shall give written
notice thereof, by regular mail, postage prepaid, to the Holder at the Holder's
address as it shall appear in the Warrant Register, mailed at least 10 days
prior to (i) the date as of which the holders of record of shares of Common
Stock to be entitled to receive any such dividend, distribution, rights,
warrants, or other securities are to be determined, (ii) the date on which any
such reclassification, change of outstanding shares of Common Stock,
consolidation, merger, sale, lease, conveyance of property, liquidation,
dissolution, or winding-up is expected to become effective, and the date as of
which it is expected that holders of record of shares of Common Stock shall be
entitled to exchange their shares for securities or other property, if any,
deliverable upon such reclassification, change of outstanding shares,
consolidation, merger, sale, lease, conveyance of property, liquidation,
dissolution, or winding-up.

                  6. If this Warrant is lost, stolen or destroyed, the Company
shall, subject to such reasonable terms as to indemnity as are commonly imposed
in respect of warrants which are not registered pursuant to the Act, issue a new
Warrant of like denomination and tenor as, and in substitution for, the Warrant
so lost, stolen or destroyed, and in the event this Warrant shall be mutilated,
the Company shall, upon the surrender hereof, issue a new Warrant of like
denomination and tenor as, and in substitution for, the Warrant so mutilated.

                  7. Notwithstanding anything to the contrary contained in this
Warrant, this Warrant and the shares of Common Stock underlying this Warrant may
not be sold, assigned or transferred at any time, in any manner or by any person
or entity unless this Warrant and such shares, as the case may be, are
registered pursuant to the Securities Act of 1933, as amended (the "Act"), and
under applicable state securities laws or an exemption from the Act and such
state securities laws is available in respect of the Warrant and such shares for
such sale, assignment or transfer, as the case may be. In addition, except
pursuant to a registration statement under the Act, this Warrant may not be
sold, assigned, or transferred at any time, in any manner or by any person or
entity unless prior to any transfer each transferee of this Warrant shall
execute an agreement reasonably satisfactory to the Company, pursuant to which
each transferee of this Warrant shall agree to receive and hold such securities
of the Company subject to the provisions hereof and the Lock-Up Agreement in
substantially the form of Exhibit B annexed hereto, and there shall be no
further transfer except in accordance with the provisions hereof.

                                        5
<PAGE>

                  8. (a) Upon the exercise of this Warrant and the issuance of
shares pursuant to the terms hereto unless such Shares theretofore shall have
been registered under the Act, the Company shall instruct the Company's transfer
agent to issue stock certificates bearing the following legend:

                     THE SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE
                     HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
                     AS AMENDED, OR ANY STATE SECURITIES LAWS. SUCH SHARES HAVE
                     BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, ASSIGNED,
                     PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE
                     ABSENCE OF A PRIOR EFFECTIVE REGISTRATION STATEMENT UNDER
                     THE SECURITIES ACT OF 1933, AS AMENDED, OR A PRIOR OPINION
                     OF COUNSEL TO THE COMPANY OR SUCH OTHER COUNSEL AS SHALL BE
                     REASONABLY SATISFACTORY TO THE COMPANY STATING THAT
                     REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR STATE
                     SECURITIES LAWS.

                     (b) Unless such Shares theretofore shall have been
registered under the Act, the Company shall impose a "stop transfer" instruction
with respect to the certificates representing the Common Stock issued upon the
exercise of this Warrant. Nothing in this Section 8, however, shall affect in
any way the Warrant Holder's obligations and agreements to comply with all
applicable securities laws upon resale of the Common Stock issued upon the
exercise of this Warrant.

                  9.

                  9.1 At any time after the date hereof, the Company shall, at
least twenty (20) days prior to the filing of any registration statement under
the Securities Act (other than a registration statement on Form S-8 or Form S-4
or any successor forms) relating to the public offering of its Common Stock by
the Company or any of its security holders, give written notice of such proposed
filing and of the proposed date thereof to the Warrant Holder and if, on or
before the fifteenth (15) day following the date on which such notice is given,
the Company shall receive a written request from the Warrant Holder requesting
that the Company include among the securities covered by such registration
statement some or all of the Registrable Shares held by the

                                        6
<PAGE>

Warrant Holder, the Company shall, subject to Section 9.2 hereof, include such
Registrable Shares in such Registration Statement, if filed, so as to permit
such Registrable Shares to be sold or disposed of in the manner and on the terms
of the offering thereof set forth in such request. For purposes of this Article
9, the term "Registrable Shares" shall mean the Shares of Common Stock
underlying this Warrant.

                                        7

<PAGE>

                  9.2 Except as otherwise provided herein, in connection with
any registration statement filed pursuant to Section 9.1 herein, the following
provisions shall apply:

                           (i) If such registration statement shall be filed
                  pursuant to Section 9.1 hereof and if the managing underwriter
                  advises the Company in writing that the inclusion in such
                  registration of some or all of the Registrable Shares sought
                  to be registered by such Warrant Holder creates a substantial
                  risk that the proceeds or price per share that will be derived
                  by the Company from such registration will be reduced or that
                  the number of shares to be registered at the insistence of
                  such Warrant Holder, plus the number of shares of Common Stock
                  sought to be registered by the Company and any other
                  stockholders of the Company is too large a number to be
                  reasonably sold, then, in such event, the number of shares
                  sought to be registered for the Company, the other
                  stockholders of the Company having registration rights, and
                  such Warrant Holder, as applicable, shall be reduced, pro rata
                  in proportion to the number of shares sought to be registered
                  to the number of shares recommended be sold by the managing
                  underwriter. In no event will any securities to be sold by the
                  Company be excluded from such registration by reason of any
                  underwriters' cut-backs unless the Company has agreed thereto
                  with the underwriter.

                           (ii) If requested by such Warrant Holder in
                  connection with a registration statement filed pursuant to
                  Section 9.1, the Company will enter into an underwriting
                  agreement with the underwriters for such offering, such
                  agreement to be reasonably satisfactory in form and substance
                  to the Company, such Warrant Holder and the underwriters, and
                  to contain such representations, warranties and covenants by
                  the Company and such other terms as are customarily contained
                  in such agreements used by the managing underwriter,
                  including, without limitation, restrictions of sales of Common
                  Stock or other securities by the Company as may be reasonably
                  agreed to between the Company and such underwriters, and
                  indemnities and rights to contributions to the effect and to
                  the extent provided in Sections 9.3 and 9.4 hereof. Such
                  Warrant Holder shall be a party to any underwriting agreement
                  relating to an underwritten sale of its Registrable Shares and
                  may, at their option, require that any or all of the
                  representations, warranties and covenants of the Company to or
                  for the benefit of such underwriters, shall also be made to
                  and for the benefit of such Warrant Holder. All
                  representations and warranties of such Warrant Holder shall be
                  made to or for the benefit of the Company.

                           (iii) The Company shall provide a transfer agent and
                  registrar (which may be the same entity) for the Registrable
                  Shares, not later than the effective date of such
                  registration.

                                        8
<PAGE>

                           (iv) All expenses in connection with the preparation
                  and filing of a registration statement filed pursuant to
                  Section 9.1 shall be borne solely by the Company, except for
                  any transfer taxes payable with respect to the disposition of
                  such Registrable Shares, and any underwriting discounts and
                  selling commissions applicable solely to such sales of
                  Registrable Shares, which shall be paid by such Warrant
                  Holder, severally.

                           (v) The Company shall use its best efforts to cause
                  all of the shares of Common Stock covered by such registration
                  statement to be listed on NASDAQ or on such other securities
                  exchange as such shares may then be listed, on which similar
                  shares are listed for trading, if the listing of such
                  registered shares is permitted by such exchange.

                           (vi) Following the effective date of such
                  registration statement, the Company shall, upon the request of
                  such Warrant Holder, forthwith supply such number of
                  prospectuses (including exhibits thereto and preliminary
                  prospectuses and amendments and supplements thereto) meeting
                  the requirements of the Securities Act and such other
                  documents as are referred to in the prospectus as shall be
                  reasonably requested by such Warrant Holder to permit such
                  Warrant Holder to make a public distribution of their
                  Registrable Shares.

                           (vii) The Company shall use its best efforts to
                  register the Registrable Shares covered by any such
                  registration statements filed pursuant to Section 9.1 under
                  such securities or Blue Sky laws in addition to those in which
                  the Company would otherwise sell Registrable Shares, as such
                  Warrant Holder shall request, except that neither the Company
                  nor such Warrant Holder shall for any such purpose be required
                  to execute a general consent to service of process or to
                  qualify to do business as a foreign corporation in any
                  jurisdiction where it is not so qualified. The fees and
                  expenses incurred in connection with such registration shall
                  be borne by the Company.

                           (viii) Such Warrant Holder shall cooperate fully with
                  the Company and provide the Company with all information
                  reasonably requested by the Company for inclusion in the
                  registration statement or as necessary to comply with the
                  Securities Act. The Company shall cooperate fully with any
                  underwriters selected by such Warrant Holder and counsel to
                  such underwriters, and shall provide reasonable and customary
                  access to the Company's books and records (upon receipt from
                  such underwriters of customary confidentiality agreements) in
                  order to facilitate such underwriters' review and examination
                  of the Company in connection with such underwriting.

                                        9
<PAGE>

                           (ix) The Company shall notify such Warrant Holder, at
                  any time after effectiveness when a prospectus relating
                  thereto is required to be delivered under the Securities Act,
                  of the happening of any event as a result of which the
                  prospectus included in such registration statement, as then in
                  effect, includes an untrue statement of a material fact or
                  omits to state any material fact required to be stated therein
                  or necessary to make the statements therein not misleading in
                  light of circumstances then existing (and upon receipt of such
                  notice and until a supplemented or amended prospectus as set
                  forth below is available, such Warrant Holder shall not offer
                  or sell any securities covered by such registration statement
                  and shall return all copies of such prospectus to the Company
                  if requested to do so by it), and at the request of such
                  Warrant Holder prepare and furnish such Warrant Holder as
                  promptly as practicable, but in any event within 30 days, a
                  reasonable number of copies of a supplement to or an amendment
                  of such prospectus as may be necessary so that, as thereafter
                  delivered to the purchasers of such shares, such prospectus
                  shall not include an untrue statement of a material fact or
                  omit to state a material fact required to be stated therein or
                  necessary to make the statements therein not misleading in
                  light of the circumstances then existing.

                           (x) The Company shall furnish to such Warrant Holder
                  at the time of the registration of the Registrable Shares, a
                  signed copy of an opinion of the Company's regular in-house or
                  outside general counsel, or other counsel of the Company's
                  selection reasonably acceptable to, and which opinion shall be
                  reasonably satisfactory in form and substance to, such Warrant
                  Holder to the effect that: (a) a registration statement
                  covering the Registrable Shares has been filed with the
                  Commission under the Securities Act and has been declared
                  effective by order of the Commission, (b) said registration
                  statement and prospectus contained therein comply as to form
                  in all material respects with the requirements of the
                  Securities Act, and nothing has come to such counsel's
                  attention (after due inquiry) which would cause such counsel
                  to believe that either said registration statement or such
                  prospectus (other than the financial statements contained
                  therein, as to which such counsel need not express any
                  opinion) contains any untrue statement of a material fact or
                  omits to state a material fact required to be stated therein
                  or necessary to make the statements therein (in the case of
                  such prospectus, in light of the circumstances under which
                  they were made) not misleading, (c) after due inquiry such
                  counsel knows of no legal or governmental proceedings required
                  to be described in such registration statement or prospectus
                  which are not described as required, or of any contracts or
                  documents of a character required to be described in such
                  registration statement or such prospectus to be filed as an
                  exhibit to such registration statement or to be incorporated
                  by reference therein which are not described and filed as
                  required and (d) to such counsel's knowledge, no stop order
                  has been issued by the Commission suspending the effectiveness
                  of such registration

                                       10
<PAGE>

                  statement; it being understood that such opinion may contain
                  such qualifications and assumptions as are customary in the
                  rendering of similar opinions, and that such counsel may rely,
                  as to all factual matters treated therein, on certificates of
                  the Company (copies of which shall be delivered to such
                  Warrant Holder).

                           (xi) The Company will use its best efforts to comply
                  with the reporting requirements of Sections 13 and 15(d) of
                  the Securities Exchange Act of 1934, as amended, to the extent
                  it shall be required to do so pursuant to such sections, and
                  at all times while so required shall use its best efforts to
                  comply with all other public information reporting
                  requirements of the Commission (including reporting
                  requirements which serve as a condition to utilization of Rule
                  144 promulgated by the Commission under the Securities Act)
                  from time to time in effect and relating to the availability
                  of an exemption from the Securities Act for the sale of any of
                  the Company's Common Stock held by such Warrant Holder. The
                  Company will also cooperate with such Warrant Holder in
                  supplying such information and documentation as may be
                  necessary for such Warrant Holder to complete and file any
                  information reporting forms presently or hereafter required by
                  the Commission as a condition to the availability of an
                  exemption from the Securities Act for the sale of any of the
                  Company's Common Stock held by such Warrant Holder.

                  9.3

                                    (i) In the event of the registration of any
                  Registrable Shares of the Company under the Securities Act
                  pursuant to the provisions of Section 9.1, the Company agrees
                  to indemnify and hold harmless such Warrant Holder, each
                  underwriter, broker or dealer, if any, and their respective
                  directors, officers and employees, of such Registrable Shares,
                  and each other person, if any, who controls the holders of the
                  Registrable Shares (or a permitted assignee thereof), such
                  underwriter, broker or dealer within the meaning of the
                  Securities Act, from and against any and all losses, claims,
                  damages or liabilities (or actions in respect thereof), joint
                  or several, to which such Warrant Holder (and as applicable)
                  its directors, officers or employees, or such underwriter,
                  broker or dealer or controlling person may become subject
                  under the Securities Act or otherwise, insofar as such losses,
                  claims, damages or liabilities (or actions in respect thereof)
                  arise out of or are based upon any untrue statement or alleged
                  untrue statement of any material fact contained in any
                  registration statement under which the Registrable Shares were
                  registered under the Securities Act, any preliminary
                  prospectus or final prospectus relating to such Registrable
                  Shares, or any amendment or supplement thereto, or arise out
                  of or are based upon the omission or alleged omission to state
                  therein a material fact required to be stated therein or
                  necessary to make the statements therein not misleading, or
                  any violation by the Company of any rule or

                                       11
<PAGE>

                  regulation under the Securities Act applicable to the Company
                  or relating to any action or inaction required by the Company
                  in connection with any such registration and will reimburse
                  such Warrant Holder, each such underwriter, broker or dealer
                  and controlling person, and their respective directors,
                  officers or employees, for any legal or other expenses
                  reasonably incurred by such Warrant Holder or such
                  underwriter, broker or dealer or controlling person in
                  connection with investigating or defending any such loss,
                  claim, damage, liability or action; provided, however, that
                  the Company will not be liable in any such case to the extent
                  that any such loss, claim, damage or liability arises out of
                  or is based upon an untrue statement or alleged untrue
                  statement or omission or alleged omission made in such
                  registration statement, such preliminary prospectus, such
                  final prospectus or such amendment or supplement thereto in
                  reliance upon and in conformity with information furnished in
                  writing to the Company by such Warrant Holder's and as
                  applicable, such Warrant Holder's directors, officers or
                  employees, or such underwriter, broker, dealer or controlling
                  person for use in the preparation thereof. Such indemnity
                  shall remain in full effect irrespective of any investigation
                  by any person indemnified above.

                           (ii) In the event of the registration of any
                  Registrable Shares of such Warrant Holder under the Securities
                  Act for sale pursuant to the provisions of this Agreement, the
                  Warrant Holder agrees, to indemnify and hold harmless the
                  Company, its directors, officers and employees, from and
                  against any losses, claims, damages or liabilities, joint or
                  several, to which the Company, its directors, officers or
                  employees, may become subject under the Securities Act or
                  otherwise, insofar as such losses, claims, damages or
                  liabilities (or actions in respect thereof) arise out of or
                  are based upon any untrue statement or alleged untrue
                  statement of any material fact contained in any registration
                  statement under which such Registrable Shares were registered
                  under the Securities Act, any preliminary pros pectus or final
                  prospectus relating to such Registrable Shares, or any
                  amendment or supplement thereto, or arise out of or are based
                  upon omission or alleged omission to state therein a material
                  fact required to be stated therein or necessary to make the
                  statements therein not misleading, which untrue statement or
                  alleged untrue statement or omission or alleged omission was
                  made therein in reliance upon and in conformity with written
                  information furnished to the Company by such Warrant Holder
                  for use in the preparation thereof. Such indemnity shall
                  remain in full effect irrespective of any investigation by any
                  person indemnified above.

                           (iii) Promptly after receipt by a person entitled to
                  indemnification under this Section 9.3 (for purposes of this
                  Section 9.3, an "Indemnified Party") of notice of the
                  commencement of any action or claim relating to any
                  registration statement filed under Section 9.1 or as to which
                  indemnity may be sought hereunder, such

                                       12
<PAGE>

                  Indemnified Party will, if a claim for indemnification
                  hereunder in respect thereof is to be made against any other
                  party hereto (for purposes of this Section 9.3, an
                  "Indemnifying Party"), give written notice to such
                  Indemnifying Party of the commencement of such action or
                  claim, but the failure to so notify the Indemnifying Party
                  will not relieve it from any liability which it may have to
                  any Indemnifying Party otherwise than pursuant to the
                  provisions of this Section 9.3 and shall also not relieve the
                  Indemnifying Party of its obligations under this Section 9.3,
                  except to the extent that the Indemnifying Party is damaged
                  solely as a result of the failure to give timely notice. In
                  case any such action is brought against an Indemnified Party,
                  and it notifies an Indemnifying Party of the commencement
                  thereof, the Indemnifying Party will be entitled (at its own
                  expense) to participate in and, to the extent that it may
                  wish, jointly with any other Indemnifying Party similarly
                  notified, to assume the defense with counsel satisfactory to
                  such Indemnified Party, of such action and/or to settle such
                  action and, after notice from the Indemnifying Party to such
                  Indemnified Party of its election so to assume the defense
                  thereof, the Indemnifying Party will not be liable to such
                  Indemnified Party for any legal or other expenses subsequently
                  incurred by such Indemnified Party in connection with the
                  defense thereof, other than the reasonable cost of
                  investigation. If in an Indemnified Party's reasonable
                  judgment (which is based on the written opinion of its
                  counsel) a conflict of interest between the Indemnified
                  Parties and Indemnifying Parties exists in respect of a claim
                  or if the Indemnifying Party refuses to participate in and to
                  assume the defense of any action brought against an
                  Indemnified Party, the Indemnified Party may assume the
                  defense of such claim or action with counsel of its choosing
                  which shall not relieve the Indemnifying Party of its
                  obligations under the preceding subdivisions of this Section
                  9. No Indemnifying Party and no Indemnified Party shall enter
                  into any settlement agreement which would impose any liability
                  on such other party or parties without the prior written
                  consent of such other party or parties.

                           (iv) Notwithstanding the foregoing provisions of this
                  Section 9.3, in no event shall the Warrant Holder be liable
                  for an amount in excess of the net proceeds received by the
                  Warrant Holder from the sale of the Registrable Shares.

                  9.4 If the indemnification provided for in Section 9.3 hereof
is unavailable to the Indemnified Party in respect of any losses, claims,
damages or liabilities referred to herein, then each such Indemnifying Party, in
lieu of indemnifying such Indemnified Party, shall contribute to the amount paid
or payable by such Indemnified Party as a result of such losses, claims, damages
or liabilities (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company and such Warrant Holder from the offering of
the shares of Common Stock, or if such allocation is not permitted by applicable
law, in such proportion as is appropriate to reflect not only such relative
benefits but also the relative fault of the Company and such Warrant Holder in

                                       13
<PAGE>

connection with the statements or omissions which resulted in such losses,
claims, damages or liabilities, as well as any other relevant equitable
considerations and (ii) in such proportion as is appropriate to reflect the
relative fault of the Company and of such Warrant Holder in connection with such
statements or omissions, as well as any other relevant equitable considerations.

                  In no event shall the obligation of any Indemnifying Party to
contribute under this Section 9.4 exceed the amount that such Indemnifying Party
would have been obligated to pay by way of indemnification if the
indemnification provided for under Section 9.3 hereof had been available under
the circumstances.

                  No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation.

                  9.5 The indemnity and contribution agreements contained in
Sections 9.3 and 9.4 shall remain operative and in full force and effect
regardless of (i) any termination of this Agreement or any underwriting
agreement, (ii) any investigation made by or on behalf of any Indemnified Party
or by or on behalf of the Company and (iii) the consummation of the sale or
successive resales of the Registrable Shares.

                  10. The validity, interpretation and performance of this
Warrant shall be governed by the laws of the State of New York without giving
effect to its conflict of laws rules.

                  11. This Warrant cannot be amended, supplemented or changed,
and no provision hereof can be waived, except by a written instrument making
specific reference to this Warrant and signed by the party against whom
enforcement of any such amendment, supplement, modification or waiver is sought.
The Exhibit to this Warrant is incorporated herein by reference to the same
extent as if set forth herein in full. A waiver of any right derived hereunder
by the Warrant Holder shall not be deemed a waiver of any other right derived
hereunder.

                                       14
<PAGE>

                  12. This Warrant shall be binding upon the Company and shall
inure to the benefit of the Warrant Holder, and their respective successors and
permitted assigns.

                                                  SOULFOOD CONCEPTS, INC.

                                                  By:    /s/ Brian Hinchcliffe
                                                     --------------------------
                                                     Name: Brian Hinchcliffe
                                                     Title: President

                                       15
<PAGE>

                                    EXHIBIT A

                                SUBSCRIPTION FORM

 (To be executed by the Warrant Holder to exercise the Warrant in whole or in
part)

 TO:  SOULFOOD CONCEPTS, INC.

         The undersigned, whose Social Security or Tax Identification Number is
__, hereby irrevocably elects the right of purchase represented by the within
Warrant for, and to purchase thereunder, ____________ shares of Common Stock and
tenders payment herewith to the order of Soulfood Concepts, Inc. (the "Company")
in the amount of $__. The undersigned requests that certificates for such shares
of Common Stock be issued in the name of, and delivered to:

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and, if said number of shares of Common Stock shall not be all the shares of the
Common Stock purchasable thereunder, then a new Warrant for the balance of the
remaining shares of Common Stock purchasable thereunder be registered in the
name of, and delivered to, the undersigned at the address stated below.

         Address:

         Dated:

         Warrant Holder:                         Signature Guaranteed:

         By:____________________________         ___________________________

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