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                                                                    EXHIBIT 10.4

                    STANDARD MULTI-TENANT OFFICE LEASE--GROSS

                   AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION

1.       BASIC PROVISIONS ("BASIC PROVISIONS").

         1.1 PARTIES: This Lease ("LEASE"), dated for reference purposes only,
January 9, 2003, is made by and between AMB Property, L.P. a Delaware Limited
Partnership ("LESSOR") and Eye Dynamics Inc., a Nevada corporation ("LESSEE"),
(collectively the "PARTIES", or individually a "PARTY").

         1.2(a) PREMISES: That certain portion of the Building, including all
improvements therein or to be provided by Lessor under the terms of this Lease,
commonly known by the street address of 2301 W. 205th Street, Unit 102, located
in the City of Torrance, County of Los Angeles, State of California with zip
code 90501, as outlined on Exhibit B attached hereto ("PREMISES"). The
"BUILDING" is that certain building containing the Premises and generally
described as (describe briefly the nature of the Building): approximately 1,620
rentable sq. ft. as a part of a six (6) building complex known as the Torrance
Commerce Center II and totalling approximately 112,470 rentable sq. ft. In
addition to Lessee's rights to use and occupy the Premises as hereinafter
specified, Lessee shall have non-exclusive rights to the Common Areas (as
defined in Paragraph 2.7 below) as hereinafter specified, but shall not have any
rights to the roof, exterior wall, or utility raceways of the building or to any
other buildings in the Industrial Center. The Premises, the Building, the Common
Areas, the land upon which they are located, along with all other buildings and
improvements thereon, are herein collectively referred to as the "INDUSTRIAL
CENTER." (Also see Paragraph 2.)

         1.2(b) PARKING: Zero (0) unreserved vehicle parking spaces ("UNRESERVED
PARKING SPACES"); and Four (4) reserved vehicle parking spaces ("RESERVED
PARKING SPACES"). (Also See Paragraph 2.6.)

         1.3 TERM: Three (3) years and 0 months ("ORIGINAL TERM") commencing
February 1, 2003 ("COMMENCEMENT DATE") and ending January 31, 2006 ("EXPIRATION
DATE"). (Also see Paragraph 3.)

         1.4 EARLY POSSESSION: Not applicable ("EARLY POSSESSION DATE"). (Also
see Paragraphs 3.2 and 3.3.)

         1.5 BASE RENT: $1,458.00 per month ("BASE RENT"), payable on the first
(1st) day of each month commencing February 1, 2003. (Also see Paragraph 4.)

[ ] If this box is checked, this Lease provides for the Base Rent to be adjusted
per C, attached hereto.

         1.6(a) BASE RENT PAID UPON EXECUTION: $1,458 is Base Rent for the
         period February 2003.

         1.6(b) LESSEE'S SHARE OF COMMON AREA OPERATING EXPENSES: one & 44/100
percent (1.44%) ("LESSEE'S SHARE") as determined by [ ]prorata square footage of
the Premises as compared to the total square footage of the Building or [ ]
other criteria as described in Addendum ___.

         1.7 SECURITY DEPOSIT: $1,555.00 ("SECURITY DEPOSIT"). (Also see
Paragraph 5.)

         1.8 PERMITTED USE: office and warehouse for a medical diagnostics
equipment company ("PERMITTED USE"). (Also see Paragraph 6.)

         1.9 INSURING PARTY: Lessor is the "INSURING PARTY". (Also see Paragraph
8.)

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         1.10(a) REAL ESTATE BROKERS: The following real estate broker(s) (the
"BROKERS") and brokerage relationships exist in this transaction and are
consented to by the Parties (check applicable boxes):
[ ] not applicable represents Lessor exclusively ("Lessor's Broker");
[ ] not applicable represents Lessee exclusively ("Lessee's Broker"); or
[X] The Klabin Company represents both Lessor and Lessee ("Dual Agency").

         1.10(b) PAYMENT TO BROKERS: Upon execution of this Lease by both
Parties, Lessor shall pay said Broker(s) jointly, or in such separate shares as
they may mutually designate in writing, a fee as set forth in a separate written
agreement for brokerage services rendered by said Broker(s) in connection with
this transaction.

         1.11 GUARANTOR. The obligations of the Lessee under this Lease are to
be guaranteed by: not applicable ("GUARANTOR"). (Also see Paragraph 37.)

         1.12 ADDENDA AND EXHIBITS. Attached hereto is an Addendum or Addenda
consisting of Paragraphs 49 through 50 and Exhibits A through E, all of which
constitute a part of this Lease.

2.       PREMISES, PARKING AND COMMON AREAS.

         2.1 LETTING. Lessor hereby leases to Lessee, and Lessee hereby leases
from Lessor, the Premises, for the term, at the rental, and upon all of the
terms, covenants and conditions set forth in this Lease. Unless otherwise
provided herein, any statement of square footage set forth in this Lease, or
that may have been used in calculating rental and/or Common Area Operating
Expenses, is an approximation which Lessor and Lessee agree is reasonable and
the rental and Lessee's Share (as defined in Paragraph 1.6(b)) based thereon is
not subject to revision whether or not the actual square footage is more or
less.

         2.2 CONDITION. Lessor shall deliver the Premises to Lessee clean and
free of debris on the Commencement Date, and warrants to Lessee that the
existing plumbing, electrical systems, fire sprinkler system, lighting, air
conditioning and heating systems and loading doors, if any, in the Premises,
other than those constructed by lessee, shall be in good operating condition on
the Commencement Date. If a non-compliance with said warranty exists as of the
Commencement Date, Lessor shall, except as otherwise provided in this Lease,
promptly after receipt of written notice from Lessee setting forth with
specifically the nature and extent of such non-compliance, rectify same at
Lessor's expense. If Lessee does not give Lessor written notice of a
non-compliance with this warranty within thirty (30) days after the Commencement
Date, correction of that non-compliance shall be the obligation of Lessee at
Lessee's sole cost and expense. The warranty period shall be six (6) months as
to the HVAC systems.

         2.3 COMPLIANCE WITH COVENANTS, RESTRICTIONS AND BUILDING CODE. Lessor
warrants that any improvements (other than those constructed by Lessee or at
Lessee's direction) on or in the Premises which have been constructed or
installed by Lessor or with Lessor's consent or at Lessor's direction shall
comply with all applicable covenants or restrictions of record and applicable
building code, regulations and ordinances in effect on the Commencement Date.
Said warranties shall not apply to any Alterations or Utility Installations
(defined in Paragraph 7.3(a)) made or to be made by Lessee. If the Premises do
not comply with said warranties, Lessor shall, except as otherwise provided in
this Lease, promptly after receipt of written notice from Lessee given within
six (6) months following the Commencement Date and setting forth with
specificity the nature and extent of such non-compliance, take such action, at
Lessor's expense, as may be reasonable or appropriate to rectify the
non-compliance. Lessor makes no warranty that the Permitted Use in Paragraph 1l8
is permitted for the premises under Applicable Laws (as defined in Paragraph
2.4).

         2.4 ACCEPTANCE OF PREMISES. Lessee hereby acknowledges: (a) that it has
satisfied itself with respect to the condition of the premises (including but
not limited to the electrical and fire sprinkler systems, security,
environmental aspects, seismic and earthquake requirements, and compliance with
the Americans with Disabilities Act and applicable zoning, municipal county,
state and federal laws, ordinances and regulations and any covenants or
restrictions of record (collectively, "APPLICABLE LAWS") and the present and
future suitability of the Premises for Lessee's intended use; (b) that Lessee

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has made such investigation as it deems necessary with reference to such
matters, is satisfied with reference thereto, and assumes all responsibility
therefore as the same relate to Lessee's occupancy of the Premises and/or the
terms of this Lease; and (c) that neither Lessor, nor any of Lessor's agents,
has made any oral or written representations or warranties with respect to said
matters other than as set forth in this Lease.

         2.5 LESSEE AS PRIOR OWNER/OCCUPANT. The warranties made by Lessor in
this Paragraph 2 shall be of no force or effect if immediately prior to the date
set forth in Paragraph 1.1. Lessee was the owner or occupant of the Premises. In
such event, Lessee shall, at Lessee's sole cost and expense, correct any
non-compliance of the Premises with said warranties.

         2.6 VEHICLE PARKING. Lessee shall be entitled to use the number of
Unreserved Parking Spaces and Reserved Parking Spaces specified in Paragraph
1.2(b) on those portions of the Common Areas designated from time to time by
Lessor for parking. Lessee shall not use more parking spaces than said number.
Said parking spaces shall be used for parking by vehicles no larger than
full-size passenger automobiles or pick-up trucks, herein called "PERMITTED SIZE
VEHICLES." Vehicles other than Permitted Size Vehicles shall be parked and
loaded or unloaded as directed by Lessor in the Rules and Regulations (as
defined in Paragraph 40) issued by lessor. (Also see Paragraph 2.9.)

                  (a) Lessee shall not permit or allow any vehicles that belong
to or are controlled by Lessee or Lessee's employees, suppliers, shippers,
customers, contractors or invitees to be loaded, unloaded, or parked in areas
other than those designated by lessor for such activities.

                  (b) If Lessee permits or allows any of the prohibited
activities described in this Paragraph 2.6, then Lessor shall have the right,
without notice, in addition to such other rights and remedies that it may have,
to remove or tow away the vehicle involved and charge the cost to Lessee, which
cost shall be immediately payable upon demand by Lessor.

                  (c) Lessor shall at the Commencement Date of this Lease,
provide the parking facilities required by Applicable Law.

         2.7 COMMON AREAS--DEFINITION. The term "COMMON AREAS" is defined as all
areas and facilities outside the Premises and within the exterior boundary line
of the Industrial Center and interior utility raceways within the Premises that
are provided and designated by the Lessor from time to time for the general
non-exclusive use of Lessor, Lessee and other lessees of the Industrial Center
and their respective employees, suppliers, shippers, customers, contractors and
invitees, including parking areas, loading and unloading areas, trash areas,
roadways, sidewalks, walkways, parkways, driveways and landscaped areas.

         2.8 COMMON AREAS--LESSEE'S RIGHTS. Lessor hereby grants to Lessee, for
the benefit of Lessee and its employees, suppliers, shippers, contractors,
customers and invitees, during the term of this Lease, the nonexclusive right to
use, in common with others entitled to such use, the Common Areas as they exist
from time to time, subject to any rights, powers, and privileges reserved by
Lessor under the terms hereof or under the terms of any rules and regulations or
restrictions governing the use of the Industrial Center. Under no circumstances
shall the right herein granted to use the Common Areas be deemed to include the
right to store any property, temporarily or permanently, in the Common Areas.
Any such storage shall be permitted only by the prior written consent of Lessor
or Lessor's designated agent, which consent may be revoked at any time. In the
event that any unauthorized storage shall occur then Lessor shall have the
right, without notice, in addition to such other rights and remedies that it may
have, to remove the property and charge the cost to Lessee, which cost shall be
immediately payable upon demand by Lessor. (See Exhibit "D")

         2.9 COMMON AREAS--RULES AND REGULATIONS. Lessor or such other person(s)
as Lessor may appoint shall have the exclusive control and management of the
Common Areas and shall have the right, from time to time, to establish, modify,
amend and enforce reasonable Rules and Regulations with respect thereto in
accordance with Paragraph 40. Lessee agrees to abide by and conform to all such

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Rules and Regulations, and to cause its employees, suppliers, shippers,
customers, contractors and invitees to so abide and conform. Lessor shall not be
responsible to Lessee for the non-compliance with said rules and regulations by
other lessees of the Industrial Center.

         2.10 COMMON AREAS--CHANGES. Lessor shall have the right, in Lessor's
sole discretion, from time to time:

                  (a) To make changes to the Common Areas, including, without
limitation, changes in the location, size, shape and number of the lobbies,
windows, stairways, air shafts, elevators, escalators, restrooms, driveways,
entrances, parking spaces, parking areas, loading and unloading areas, ingress,
egress, direction of traffic, landscaped areas, walkways and utility raceways;

                  (b) To close temporarily any of the Common Areas for
maintenance purposes so long as reasonable access to the Premises remains
available;

                  (c) To designate other land outside the boundaries of the
Industrial Center to be a part of the Common Areas;

                  (d) To add additional buildings and improvements to the Common
Areas;

                  (e) To use the Common Areas while engaged in making additional
improvements, repairs or alterations to the Project, or any portion thereof; and

                  (f) To do and perform such other acts and make such other
changes in, to or with respect to the Common Areas and Industrial Center as
Lessor may, in the exercise of sound business judgment, deem to be appropriate.

3.       TERM.

         3.1 TERM. The Commencement Date, Expiration Date and Original Term of
this Lease are as specified in Paragraph 1.3.

         3.2 EARLY POSSESSION. If an Early Possession Date is specified in
Paragraph 1.4 and if Lessee totally or partially occupies the Premises after the
Early Possession Date but prior to the Commencement Date, the obligation to pay
Base Rent shall be abated for the period of such early occupancy. All other
terms of this Lease (including but not limited to the obligations to pay
Lessee's Share of the Operating Expenses and to carry the insurance required by
Paragraph 8) shall be in effect during such period. Any such early possession
shall not affect the Expiration Date of the Original Term.

         3.3 DELAY IN POSSESSION. If for any reason Lessor cannot deliver
possession of the Premises to Lessee by the Early Possession Date, if one is
specified in Paragraph 1.4, or if no Early Possession Date is specified, by the
Commencement Date, Lessor shall not be subject to any liability therefor, nor
shall such failure affect the validity of this Lease, or the obligations of
Lessee hereunder, or extend the term hereof, but in such case, Lessee shall not,
except as otherwise provided herein, be obligated to pay rent or perform any
other obligation of Lessee under the terms of this Lease until Lessor delivers
possession of the Premises to Lessee. If possession of the Premises is not
delivered to Lessee within 60 days after the Commencement Date, Lessee may, at
its option, by notice in writing within ten (10) days after the end of such
sixty (60) day period, cancel this Lease, in which event the parties shall be
discharged from all obligations hereunder; provided further, however, that if
such written notice of Lessee is not received by Lessor within said ten (10) day
period, Lessee's right to cancel this Lease hereunder shall terminate and be of
no further force or effect. Except as may be otherwise provided, and regardless
of when the Original Term actually commences, if possession is not tendered to
Lessee when required by this Lease and Lessee does not terminate this Lease, as
aforesaid, the period free of the obligation to pay Base Rent, if any, that
Lessee would otherwise have enjoyed shall run from the date of delivery of

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possession and continue for a period equal to the period during which the Lessee
would have otherwise enjoyed under the terms hereof, but minus any days of delay
caused by the acts, changes or omissions of Lessee.

4.       RENT.

         4.1 BASE RENT. Lessee shall pay Base Rent and other rent or charges, as
the same may be adjusted from time to time, to Lessor in lawful money of the
United States, without offset or deduction, on or before the day on which it is
due under the terms of this Lease. Base Rent and all other rent and charges for
any period during the term hereof which is for less than one full month shall be
prorated based upon the actual number of days of the month involved. Payment of
Base Rent and other charges shall be made to Lessor at its address stated herein
or to such other persons or at such other addresses as Lessor may from time to
time designate in writing to Lessee.

         4.2 COMMON AREA OPERATING EXPENSES. Lessee shall pay to Lessor during
the term hereof, in addition to the Base Rent, Lessee's Share (as specified in
Paragraph 1.6(b)) of all Common Area Operating Expenses, as hereinafter defined,
during each calendar year of the term of this Lease, in accordance with the
following provisions:

                  (a) "COMMON AREA OPERATING EXPENSES" are defined, for purposes
of this Lease, as all costs incurred by Lessor relating to the ownership and
operation of the Industrial Center, including, but not limited to, the
following:

                           (i) The operation, repair and maintenance, in neat,
clean, good order and condition, of
the following:

                                    (aa) The Common Areas, including parking
areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways,
parkways, driveways, landscaped areas, striping, bumpers, irrigation systems,
Common Area lighting facilities, fences and gates, elevators and roof.

                                    (bb) Exterior signs and any tenant
directories.

                                    (cc) Fire detection and sprinkler systems.

                           (ii) The cost of water, gas, electricity and
telephone to service the Common Areas.

                           (iii) Trash disposal, property management and
security services and the costs of any
environmental inspections.

                           (iv) Reserves set aside for maintenance and repair of
Common Areas.

                           (v) Any increase above the Base Real Property Taxes
(as defined in Paragraph 10.2(b)) for the Building and the Common Areas.

                           (vi) Any "Insurance Cost Increase" (as defined in
Paragraph 8.1).

                           (vii) The cost of insurance carried by Lessor with
respect to the Common Areas.

                           (viii) Any deductible portion of an insured loss
concerning the Building or the Common
Areas.

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                           (ix) Any other services to be provided by Lessor that
are stated elsewhere in this Lease to be a Common Area Operating Expense (See
Addendum 1 for continuation).

                  (b) Any Common Area Operating Expenses and Real Property Taxes
that are specifically attributable to the Building or to any other building in
the Industrial Center or to the operation, repair and maintenance thereof, shall
be allocated entirely to the Building or to such other building. However, any
Common Area Operating Expenses and Real Property Taxes that are not specifically
attributable to the Building or to any other building or to the operation,
repair and maintenance thereof, shall be equitably allocated by Lessor to all
buildings in the Industrial Center.

                  (c) the inclusion of the improvements, facilities and services
set forth in Subparagraph 4.2(a) shall not be deemed to impose an obligation
upon Lessor to either have said improvements or facilities or to provide those
services unless the Industrial Center already has the same, Lessor already
provides the services, or Lessor has agreed elsewhere in this Lease to provide
the same or some of them.

                  (d) Lessee's Share of Common Area Operating Expenses shall be
payable be Lessee within ten (10) days after a reasonably detailed statement of
actual expenses is presented to Lessee by Lessor. At Lessor's option, however,
an amount may be estimated by Lessor from time to time of Lessee's Share of
annual Common Area Operating Expenses and the same shall be payable monthly or
quarterly, as Lessor shall designate, during each 12-month period of the Lease
term, on the same day as the Base Rent is due hereunder. In the event that
Lessee pays Lessor's estimate of Lessee's Share of Operating Expense Increase as
aforesaid, Lessor shall deliver to Lessee within sixty (60) days after the
expiration of each calendar year a reasonably detailed statement showing
Lessee's Share of the actual Common Area Operating Expenses incurred during the
preceding year. If Lessee's payments under this paragraph 4.2(d) during said
preceding year exceed Lessee's Share as indicated on said statement, Lessee
shall be credited the amount of such overpayment against Lessee's Share of
Common Area Operating Expenses next becoming due. If Lessee's payments under
this paragraph 4.2(d) during said preceding year were less than Lessee's Share
as indicated on said statement, Lessee shall pay to Lessor the amount of the
deficiency within ten (10) days after delivery by Lessor to Lessee of said
statement.

5.       SECURITY DEPOSIT.

         Lessee shall deposit with Lessor upon execution hereof the Security
Deposit as set forth in Paragraph 1.7 as security for Lessee's faithful
performance of Lessee's obligations under this Lease. If Lessee fails to pay
Base Rent, or other rent or charges due hereunder, or otherwise Defaults under
this Lease (as defined in Paragraph 13.1), Lessor may use, apply, or retain all
or any portion of said Security Deposit for the payment of any amount due Lessor
or to reimburse or compensate Lessor for any liability, cost, expense, loss or
damage (including attorneys' fees) which Lessor may suffer or incur by reason
thereof. If Lessor uses or applies all or any portion of the Security Deposit,
Lessee shall within ten (10) days after written request therefor, deposit monies
with Lessor sufficient to restore said Security Deposit to the full amount
required by this Lease. Any time the Base Rent increases during the term of this
Lease, Lessee shall, upon written request from Lessor, deposit additional monies
with Lessor as an addition to the Security Deposit so that the total amount of
the Security Department shall at all times bear the same proportion to the then
current Base Rent as the initial Security Deposit bears to the initial Base Rent
set forth in Paragraph 1.5. Lessor shall not be required to keep all or any part
of the Security Deposit separate from its general accounts. Lessor shall, at the
expiration or earlier termination of the term hereof and after Lessee has
vacated the Premises, return to Lessee (or, at Lessor's option, to the last
assignee, if any, of Lessee's interest herein), that portion of the Security
Deposit not used or applied by Lessor. Unless otherwise expressly agreed in
writing by Lessor, no part of the Security Deposit shall be considered to be
held in trust to bear interest or other increment for the use, or to be
prepayment for any monies to be paid by Lessee under this Lease.

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6.       USE.

         6.1      PERMITTED USE.

                  (a) Lessee shall use and occupy the Premises only for the
Permitted Use set forth in Paragraph 1.8, or any other legal use which is
reasonably comparable thereto, and for no other purpose. Lessee shall not use or
permit the use of the Premises in a manner that is unlawful, creates damage,
waste or a nuisance, or that disturbs owners and/or occupants of or causes
damage to the Premises or neighboring premises or properties.

                  (b) Lessor hereby agrees to not unreasonably withhold or delay
its consent to any written request by Lessee, Lessee's assignees or subtenants,
and prospective assignees and subtenants of Lessee, its assignees and
subtenants, for a modification of said Permitted Use, so long as the same will
not impair the structural integrity of the Improvements on the Premises or in
the Building or the mechanical or electrical systems therein, does not conflict
with uses by other lessees, is not significantly more burdensome to the Premises
or the Building and the improvements thereon, and is otherwise permissible
pursuant to this Paragraph 6. If Lessor elects to withhold such consent, Lessor
shall within five (5) business days after such request give written notification
of same, which notice shall include an explanation of Lessor's objections to the
change in use.

         6.2      HAZARDOUS SUBSTANCES.

                  (a) REPORTABLE USES REQUIRE CONSENT. The term "Hazardous
Substance" as used in this Lease shall mean any product, substance, chemical,
material or waste whose presence, nature, quantity and/or intensity of
existence, use, manufacture, disposal, transportation, spill, release or effect,
either by itself or in combination with other materials expected to be on the
Premises, is either: (i) potentially injurious to the public health, safety or
welfare, the environment or the Premises, (ii) regulated or monitored by any
governmental authority, or (iii) a basis for potential liability of Lessor to
any governmental agency or third party under any applicable statute or common
law theory. Hazardous Substances shall include, but not be limited to,
hydrocarbons, petroleum, gasoline, and/or crude oil or any products, byproducts
or fractions thereof. Lessee shall not engage in any activity in or on the
Premises which constitutes a Reportable Use of Hazardous Substances without the
express prior written consent of Lessor and timely compliance (at Lessee's
expense) with all Applicable Requirements as defined in Paragraph 6.3).
"REPORTABLE USE" shall mean (i) the installation or use of any above or below
ground storage tank, (ii) the generation, possession, storage, use,
transportation, or disposal of a Hazardous Substance that requires a permit
from, or with respect to which a report, notice, registration or business plan
is required to be filed with, any governmental authority, and (iii) the presence
in, on or about the Premises of a Hazardous Substance with respect to which
requires that a notice be given to persons entering or occupying the Premises or
neighboring properties. Notwithstanding the foregoing, Lessee may, without
Lessor's prior consent but upon notice to Lessor and in compliance with all
Applicable Requirements, use any ordinary and customary materials reasonably
required to be used in the normal course of the Permitted Use such as ordinary
office supplies (copier toner, liquid paper, glue, etc.) and common household
cleaning materials, so long as such use is not a Reportable Use, and does not
expose the Premises or neighboring property to any meaningful risk of
contamination or damage or expose Lessor to any liability therefor. In addition,
Lessor may (but without any obligation to do so) condition its consent to any
Reportable Use of any Hazardous Substance by Lessee upon Lessee's giving Lessor
such additional assurances as Lessor, in its reasonable discretion, deems
necessary to protect itself, the public, the Premises and the environment
against damage, contamination, injury and/or liability, including, but not
limited to, the installation (and removal on or before Lease expiration or
termination) of protective modifications (such as concrete encasements) and/or
increasing the Security Deposit under Paragraph 5 hereof.

                  (b) DUTY TO INFORM LESSOR. If Lessee knows, or has reasonable
cause to believe, that a Hazardous Substance has come to be located in, on,
under or about the Premises, other than as previously consented to by Lessor,
Lessee shall immediately give Lessor written notice thereof, together with a
copy of any statement, report, notice, registration, application, permit,
business plan, license, claim, action, or proceeding given to, or received from,
any governmental authority or private party concerning the presence, spill,
release, discharge of, or exposure to, such Hazardous Substance including but
not limited to all such documents as may be involved in any Reportable Use
involving the Premises. Lessee shall not cause or permit any Hazardous Substance
to be spilled or released in, on, under or about the Premises (including,
without limitation, through the plumbing or sanitary sewer system).

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                  (c) INDEMNIFICATION. Lessee shall indemnify, defend and hold
Lessor, its agents, employees, lenders and ground lessor, if any, harmless from
and against any and all loss of rents and/or damages, liabilities, judgments,
claims, expenses, penalties, and attorneys' and consultants' fees arising out of
or involving any Hazardous Substance brought onto the Premises by or for Lessee,
or any third party (provided, however, that Lessee shall have no liability under
this Lease with respect to underground migration of any Hazardous Substance
under the Premises from areas outside of the Project not caused or contributed
to by Lessee). Lessee's obligations shall include, but not be limited to, the
effects of any contamination or injury to person, property or the environment
created or suffered by Lessee, and the cost of investigation, removal,
remediation, restoration and/or abatement, and shall survive the expiration or
termination of this Lease. No termination, cancellation or release agreement
entered into by Lessor and Lessee shall release Lessee from its obligations
under this Lease with respect to Hazardous Substances, unless specifically so
agreed by Lessor in writing at the time of such agreement.

         6.3 LESSEE'S COMPLIANCE WITH REQUIREMENTS. Lessee shall, at Lessee's
sole expense, fully, diligently and in a timely manner, materially comply with
all Applicable Requirements, the requirements of any applicable fire insurance
underwriter or rating bureau, and the recommendations of Lessor's engineers
and/or consultants, which refer in any manner to the Premises, without regard to
whether said requirements are now in effect or become effective after the Start
Date. Lessee shall, within 10 days after receipt of Lessor's written request,
provide Lessor with copies of all permits and other documents, and other
information evidencing Lessee's compliance with any Applicable Requirements
specified by Lessor, and shall immediately upon receipt, notify Lessor in
writing (with copies of any documents involved) of any threatened or actual
claim, notice, citation, warning, complaint or report pertaining to or involving
the failure of Lessee or the Premises to comply with any Applicable
Requirements.

         6.4 INSPECTION; COMPLIANCE WITH LAW. Lessor, Lessor's agents,
employees, contractors and designated representatives, and the holders of any
mortgages, deeds of trust or ground leases on the Premises ("LENDERS") shall
have the right to enter into Premises at any time, in the case of an emergency,
and otherwise at reasonable times, for the purpose of inspecting the condition
of the Premises and for verifying compliance by Lessee with this Lease. The cost
of any such inspections shall be paid by Lessor, unless a violation of
Applicable Requirements, or a Hazardous Substance Condition (see paragraph 9.1e)
is found to exist or to be imminent, or the inspection is requested or ordered
by a governmental authority. In such case, Lessee shall upon request reimburse
Lessor for the cost of such inspection, so long as such inspection is reasonably
related to the violation or contamination. In such case, Lessee shall upon
request reimburse Lessor,'s Lender, as the case may be, for the costs and
expenses of such inspections.

7.       MAINTENANCE; REPAIRS; UTILITY INSTALLATIONS; TRADE FIXTURES AND
         ALTERATIONS.

         7.1 LESSEE'S OBLIGATIONS. Notwithstanding Lessor's obligation to keep
the Premises in good condition and repair, Lessee shall be responsible for
payment of the cost thereof to Lessor as additional rent for that portion of the
cost of any maintenance and repair to the Premises, or any equipment (wherever
located) that serves only Lessee or the Premises, to the extent such cost is
attributable to causes beyond normal wear and tear. Lessee shall be responsible
for the cost of painting, repairing or replacing wall coverings, and to repair
or replace any improvements with the Premises. Lessor may, at its option, upon
reasonable notice, elect to have Lessee perform any particular such maintenance
or repairs the cost of which is otherwise Lessee's responsibility hereunder.

         7.2 LESSOR'S OBLIGATIONS. Subject to the provisions of Paragraphs 2.2
(Condition), 2.3 (Compliance), 4.2 (Operating Expenses), 6 (Use). 7.1 (Lessee's
Obligations), 9 (Damage or Destruction) and 14 (Condemnation), Lessor, subject
to reimbursement pursuant to Paragraph 4.2, shall keep in good order, condition
and repair the foundations, exterior walls, structural condition of interior
bearing walls, exterior roof, fire sprinkler and/or standpoint and hose, (if
located in the Common Areas) or other automatic fire extinguishing system
including fire alarm and/or smoke detection systems and equipment, fire
hydrants, parking lots, walkways, parkways, driveways, landscaping, fences,
signs and utility systems serving the Common Areas and all parts thereof, as
well as providing the services for which there is a Common Area Operating

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Expense pursuant to Paragraph 4.2.Lessoer shall not be obligated to paint the
exterior or interior surfaces of exterior walls nor shall Lessor be obligated to
maintain, repair or replace windows, doors or plate glass on the premises.
Lessee expressly waives the benefit of any statute now or hereafter in effect
which would otherwise afford Lessee the right to make repairs at Lessor's
expense or to terminate this Lease because of Lessor's failure to keep the
Building, Industrial Center or Common Areas in good condition, order and repair.

         7.3      UTILITY INSTALLATIONS; TRADE FIXTURES; ALTERATIONS.

                  (a) DEFINITIONS; CONSENT REQUIRED. The term "Utility
Installations"as used in this Lease refers to all air lines, power panels,
electrical distribution, security, fire protection systems, communication
systems, lighting fixtures, HVAC equipment, and plumbing and fencing in or on
the Premises. The term "TRADE FIXTURES" shall mean Lessee's machinery and
equipment which can be removed without doing material damage to the Premises.
The term "ALTERATIONS" shall mean any modification of the improvements on the
Premises, other than Utility Installations or Trade Fixtures. "LESSEE-OWNED
ALTERATIONS AND/OR UTILITY INSTALLATIONS" are defined as Alterations and/or
Utility Installations made by Lessee that are not yet owned by Lessor pursuant
to Paragraph 7.4(a).

                  (b) CONSENT. Any Alterations or Utility Installations that
Lessee shall desire to make and which require the consent of Lessor shall be
presented to Lessor in written form with detailed plans Consent shall be deemed
conditioned upon Lessee's: (i) acquiring all applicable governmental permits,
(ii) furnishing Lessor with copies of both the permits and the plans and
specifications prior to commencement of the work, and (iii) compliance with all
conditions of said permits and other Applicable Requirements in a prompt and
expeditious manner. Any Alterations or Utility Installations shall be performed
in a workmanlike manner with good and sufficient materials. Lessee shall
promptly upon completion furnish Lessor with as built plans and specifications.
For work which costs an amount in excess of one month's Base Rent, Lessor may
condition as consent upon Lessee, providing a lien and completion bond in an
amount equal to 150% of the estimated cost of such Alteration or Utility
Installation and/or upon Lessee's posting an additional Security Deposit and
Lessor.

                  (c) LIEN PROTECTION. Lessee shall pay, when due, all claims
for labor or materials furnished or alleged to have been furnished to or for
Lessee at or for use on the Premises, which claims are or may be secured by any
mechanic's or materialmen's lien against the Premises or any interest therein.
Lessee shall give Lessor not less than ten 10 days notice prior to the
commencement of any work in, on or about the Premises, and Lessor shall have the
right to post notices of non-responsibility. If Lessee shall contest the
validity of any such lien, claim or demand, then Lessee shall, at its sole
expense defend and protect itself, Lessor and the Premises against the same and
shall pay and satisfy any such adverse judgment that may be rendered thereon
before the enforcement thereof. If Lessor shall require, Lessee shall furnish a
surety bond in an amount equal to 150% of the amount of such contested lien,
claim or demand, indemnifying Lessor against liability for the same. If Lessor
elects to participate in any such action, Lessee shall pay Lessor's attorneys'
fees and costs.

         7.4      OWNERSHIP; REMOVAL; SURRENDER; AND RESTORATION.

                  (a) OWNERSHIP. Subject to Lessor's right to require removal or
elect ownership as hereinafter provided, all Alterations and Utility
Installations made by Lessee shall be the property of Lessee, but considered a
part of the Premises. Lessor may, at any time, elect in writing to be the owner
of all or any specified part of the Lessee Owned Alterations and Utility
Installations. Unless otherwise instructed per paragraph 7.4(b) hereof, all
Lessee Owned Alterations and Utility Installations shall, at the expiration or
termination of this Lease, become the property of Lessor and be surrendered by
Lessee with the Premises.

                  (b) REMOVAL. By delivery to Lessee of written notice from
Lessor not earlier than 90 and not later than 30 days prior to the end of the
term of this Lease, Lessor may require that any or all Lessee Owned Alterations
or Utility Installations be removed by the expiration or termination of this
Lease. Lessor may require the removal at any time of all or any part of any
Lessee Owned Alterations or Utility Installations made without the required
consent.

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                  (c) SURRENDER; RESTORATION. Lessee shall surrender the
Premises by the Expiration Date or any earlier termination date, with all of the
improvements, parts and surfaces thereof clean and free of debris, and in good
operating order, condition and state of repair, ordinary wear and tear excepted.
"Ordinary wear and tear" shall not include any damage or deterioration that
would have been prevented by good maintenance practice. Notwithstanding the
foregoing, if this Lease is for 12 months or less, then Lessee shall surrender
the Premises in the same condition as delivered to Lessee on the Start Date with
NO allowance for ordinary wear and tear. Lessee shall repair any damage
occasioned by the installation, maintenance or removal of Trade Fixtures, Lessee
Owned Alterations and/or Utility Installations, furnishings, and equipment as
well as the removal of any storage tank installed by or for Lessee. Lessee shall
also completely remove from the Premises any and all Hazardous Substances
brought onto the Premises by or for Lessee, (except Hazardous Substances which
were deposited via underground migration from areas outside of the Project).
Trade Fixtures shall remain the property of Lessee and shall be removed by
Lessee subject to its obligation to repair and restore the Premises per this
Lease.

8.       INSURANCE; INDEMNITY.

         8.1      PAYMENT OF PREMIUM INCREASES.

                  (a) As used herein, the term "INSURANCE COST INCREASE" is
defined as any increase in the actual cost of the insurance applicable to the
Building and required to be carried by Lessor pursuant to Paragraphs 8.2(b),
8.3(a) and 8.3(b). ("REQUIRED INSURANCE"), over and above the Base Premium, as
hereinafter defined, calculated on an annual basis. "Insurance Cost Increase"
shall include, but not be limited to, requirements of the holder of a mortgage
or deed of trust covering the Premises, increased valuation of the Premises,
and/or a general premium rate increase. The term "Insurance Cost Increase" shall
not, however, include any premium increases resulting from the nature of the
occupancy of any other lessee of the Building. If the parties insert a dollar
amount in Paragraph 1.l9, such amount shall be considered the "Base Premium." If
a dollar amount has not been inserted in Paragraph 12l9 and if the Building has
been previously occupied during the twelve (12) month period immediately
preceding the Commencement Date, the "Base Premium" shall be the annual premium
applicable to such twelve (12) month period. If the Building was not fully
occupied during such twelve (12) month period, the "Base Premium": shall be the
lowest annual premium reasonably obtainable for the Required Insurance as of the
Commencement Date, assuming the most nominal use possible of the Building. In no
event, however, shall Lessee be responsible for any portion of the premium cost
attributable to liability insurance coverage in excess of $1,000,000 procured
under Paragraph 8.2(b).

                  (b) Lessee shall pay any Insurance Cost increase to Lessor
pursuant to Paragraph 4.2. Premiums for policy periods commencing prior to, or
extending beyond, the terms of this Lease shall be prorated to coincide with the
corresponding Commencement Date or Expiration Date.

         8.2      LIABILITY INSURANCE.

                  (a) CARRIED BY LESSEE. Lessee shall obtain and keep in force a
Commercial General Liability policy of insurance protecting Lessee and Lessor as
an additional insured against claims for bodily injury, personal injury and
property damage based upon or arising out of the ownership, use, occupancy or
maintenance of the Premises and all areas appurtenant thereto. Such insurance
shall be on an occurrence basis providing single limit coverage in an amount not
less than $1,000,000 per occurrence with an annual aggregate of not less than
$2,000,000, an "Additional Insured- Managers or Lessors of Premises Endorsement"
and contain the "Amendment of the Pollution Exclusion Endorsement" for damage
caused by heat, smoke or fumes from a hostile fire. The policy shall not contain
any intra-insured exclusions as between insured persons or organizations, but
shall include coverage for liability assumed under this Lease as an "INSURED
CONTRACT" for the performance of Lessee's indemnity obligations under this
Lease. The limits of said insurance shall not, however, limit the liability of
Lessee nor relieve Lessee of any obligation hereunder. All insurance carried by
Lessee shall be primary to and not contributory with any similar insurance
carried by Lessor, whose insurance shall be considered excess insurance only.

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<PAGE>

                  (b) CARRIED BY LESSOR. Lessor shall also maintain liability
insurance described in Paragraph 8.2(a), in addition to, and not in lieu of, the
insurance required to be maintained by Lessee. Lessee shall not be named as an
additional insured therein.

         8.3      PROPERTY INSURANCE--BUILDING, IMPROVEMENTS AND RENTAL VALUE.

                  (a) BUILDING AND IMPROVEMENTS. Lessor shall obtain and keep in
force a policy or policies of insurance in the name of Lessor, with loss payable
to Lessor, any ground-lessor, and to any Lender insuring loss or damage to the
Building and/or Project. The amount of such insurance shall be equal to the full
replacement cost of the Building and/or Project, as the same shall exist from
time to time, or the amount required by any Lender, but in no event more than
the commercially reasonable and available insurable value thereof. Lessee Owned
Alterations and Utility Installations, Trade Fixtures and Lessee's personal
property shall be insured by Lessee under Paragraph 8.4. If the coverage is
available and commercially appropriate, such policy or policies shall insure
against all risks of direct physical loss or damage (except the perils of flood
and/or earthquake unless required by a Lender), including coverage for debris
removal and the enforcement of any Applicable Requirements requiring the
upgrading, demolition, reconstruction or replacement of any portion of the
Premises as the result of a covered loss. Said policy or policies shall also
contain an agreed valuation provision in lieu of any coinsurance clause, waiver
of subrogation, and inflation guard protection causing an increase in the annual
property insurance coverage amount by a factor of not less than the adjusted
U.S. Department of Labor Consumer Price Index for All Urban Consumers for the
city nearest to where the Premises are located.

                  (b) RENTAL VALUE. Lessor shall also obtain and keep in force a
policy or policies in the name of Lessor with loss payable to Lessor and any
Lender, insuring the loss of the full Rent for one year with an extended period
of indemnity for an additional 180 days ("RENTAL VALUE INSURANCE"). Said
insurance shall contain an agreed valuation provision in lieu of any coinsurance
clause, and the amount of coverage shall be adjusted annually to reflect the
projected Rent otherwise payable by Lessee, for the next 12-month period. Common
Area Operating Expenses shall include any deductible amount in the event of such
loss.

                  (c) ADJACENT PREMISES. Lessee shall pay for any increase in
the premiums for the property insurance of the Building and for the Common Areas
or other buildings in the Project if said increase is caused by Lessee's acts,
omissions, use or occupancy of the Premises.

                  (d) LESSEE'S IMPROVEMENTS. Since Lessor is the Insuring Party,
Lessor shall not be required to insure Lessee Owned Alterations and Utility
Installations unless the item in question has become the property of Lessor
under the terms of this Lease.

         8.4 LESSEE'S PROPERTY INSURANCE. Subject to the requirements of
Paragraph 8.5, Lessee at its costs shall either by separate policy or, at
Lessor's option, by endorsement to a policy already carried, maintain insurance
coverage on all of Lessee's personal property, Trade Fixtures and Lessee-Owned
Alterations and Utility Installations in, on or about the Premises, similar in
coverage to that carried by Lessor as the Insuring Party under Paragraph 8.3(a).
Such insurance shall be full replacement cost coverage with a deductible not to
exceed $1,000 per occurrence. The proceeds from any such insurance shall be used
by Lessee for the replacement of personal property and the restoration of Trade
Fixtures and Lessee-Owned Alterations and Utility Installations. Upon request
from Lessor, Lessee shall provide Lessor with written evidence that such
insurance is in force.

         8.5 INSURANCE POLICIES. Insurance required herein shall be by companies
duly licensed or admitted to transact business in the state where the Premises
are located, and maintaining during the policy term a "General Policyholders
Rating" of at least B+, V, as set forth in the most current issue of "Best's
Insurance Guide", or such other rating as may be required by a Lender. Lessee
shall not do or permit to be done anything which invalidates the required
insurance policies. Lessee shall, prior to the Start Date, deliver to Lessor
certified copies of such insurance or certificates evidencing the existence and
amounts of, XXX. Lessee shall, at least thirty (30) days prior to the expiration
of such policies, furnish Lessor with evidence of renewals or "insurance

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<PAGE>

binders" evidencing renewal thereof, or Lessor may order such insurance and
charge the cost thereof to Lessee, which amount shall be payable by Lessee to
Lessor upon demand.

         8.6 WAIVER OF SUBROGATION. Without affecting any other rights or
remedies, Lessee and Lessor each hereby release and relieve the other, and waive
their entire right to recover damages against the other, for loss of or damage
to its property arising out of or incident to the perils required to be insured
against herein. The effect of such releases and waivers is not limited by the
amount of insurance carried or required, or by any deductibles applicable
hereto. The Parties agree to have their respective property damage insurance
carriers waive any right to subrogation that such companies may have against
Lessor or Lessee, as the case may be, so long as the insurance is not
invalidated thereby.

         8.7 INDEMNITY. Except for Lessor's gross negligence or willful
misconduct, Lessee shall indemnify, protect, defend and hold harmless the
Premises, Lessor and its agents, Lessor's master or ground lessor, partners and
Lenders, from and against any and all claims, loss of rents and/or damages,
liens, judgments, penalties, attorneys' and consultants' fees, expenses and/or
liabilities arising out of, involving, or in connection with, the use and/or
occupancy of the Premises by Lessee. If any action or proceeding is brought
against Lessor by reason of any of the foregoing matters, Lessee shall upon
notice defend the same at Lessee's expense by counsel reasonably satisfactory to
Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not
have first paid any such claim in order to be defended or indemnified.

         8.8 EXEMPTION OF LESSOR FROM LIABILITY. Lessor shall not be liable for
injury or damage to the person or goods, wares, merchandise or other property of
Lessee, Lessee's employees, contractors, invitees, customers, or any other
person in or about the Premises, whether such damage or injury is caused by or
results from fire, steam, electricity, gas, water or rain, or from the breakage,
leakage, obstruction or other defects of pipes, fire sprinklers, wires,
appliances, plumbing, HVAC or lighting fixtures, or from any other cause,
whether the said injury or damage results from conditions arising upon the
Premises or upon other portions of the Building, or from other sources or
places. Lessor shall not be liable for any damages arising from any act or
neglect of any other tenant of Lessor nor from the failure of Lessor to enforce
the provisions of any other lease in the Project. Notwithstanding Lessor's
negligence or breach of this Lease, Lessor shall under no circumstances be
liable for injury to Lessee's business or for any loss of income or profit
therefrom.

9.       DAMAGE OR DESTRUCTION.

         9.1      DEFINITIONS.

                  (a) "PREMISES PARTIAL DAMAGE" shall mean damage or destruction
to the Premises, other than Lessee Owned Alterations and Utility Installations,
the repair cost of which damage or destruction is less than fifty percent (50%)
of the then Replacement Cost (as defined in Paragraph 9.1(d) of the Premises
(excluding Lessee-Owned Alterations and Utility Installations and Trade
Fixtures) immediately prior to such damage or destruction.

                  (b) "PREMISES TOTAL DESTRUCTION" shall mean damage or
destruction to the Premises, other than Lessee Owned Alterations and Utility
Installations and Trade Fixtures, the repair cost of which damage or destruction
is fifty percent (50%) or more of the then Replacement Cost of the Premises
(excluding Lessee-Owned Alterations and Utility Installations and Trade
Fixtures) immediately prior to such damage or destruction. In addition, damage
or destruction to the Building, other than Lessee-Owned Alterations and Utility
Installations and Trade Fixtures of any lessees of the Building, the cost of
which damage or destruction is fifty percent (50%) or more of the then
Replacement Cost (excluding Lessee-Owned Alterations and Utility Installations
and Trade Fixtures of any lessees of the Building) of the Building shall, at the
option of Lessor, be deemed to be Premises Total Destruction.

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<PAGE>

                  (c) "INSURED LOSS" shall mean damage or destruction to
Premises, other than Lessee Owned Alterations and Utility Installations and
Trade Fixtures, which was caused by an event required to be covered by the
insurance described in Paragraph 8.3(a), irrespective of any deductible amounts
or coverage limits involved.

                  (d) "REPLACEMENT COST" shall mean the cost to repair or
rebuild the improvements owned by Lessor at the time of the occurrence to their
condition existing immediately prior thereto, including demolition, debris
removal and upgrading required by the operation of Applicable Requirements, and
without deduction for depreciation.

                  (e) "HAZARDOUS SUBSTANCE CONDITION" shall mean the occurrence
or discovery of a condition involving the presence of, or a contamination by, a
Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under the
Premises which requires repair, remediation, or restoration.

         9.2 PREMISES PARTIAL DAMAGE. If Premises Partial Damage that is an
Insured Loss occurs, then Lessor shall, at Lessor's expense, repair such damage
(but not Lessee's Trade Fixtures or Lessee Owned Alterations and Utility
Installations) as soon as reasonably possible and this Lease shall continue in
full force and effect, provided, however, that Lessee shall, at Lessor's
election, make the repair of any damage or destruction the total cost to repair
of which is $5,000 or less, and, in such event, Lessor shall make any applicable
insurance proceeds available to Lessee on a reasonable basis for that purpose.
Notwithstanding the foregoing, if the required insurance was not in force or the
insurance proceeds are not sufficient to effect such repair, the Insuring Party
shall promptly contribute the shortage in proceeds as and when required to
complete said repairs. In the event, however, such shortage was due to the fact
that, by reason of the unique nature of the improvements, full replacement cost
insurance was not commercially reasonable and available, Lessor shall have no
obligation to pay for the shortage in insurance proceeds or to fully restore the
unique aspects of the Premises unless Lessee provides Lessor with the funds to
cover some, or adequate assurance thereof, within 10 days following receipt of
written notice of such shortage and request therefor. If Lessor receives said
funds or adequate assurance thereof within said 10 day period, the party
responsible for making the repairs shall complete them as soon as reasonably
possible and this Lease shall remain in full force and effect. If such funds or
assurance are not received, Lessor may nevertheless elect by written notice to
Lessee within 10 days thereafter to: (i) make such restoration and repair as is
commercially reasonable with Lessor paying any shortage in proceeds, in which
case this Lease shall remain in full force and effect, or (ii) have this Lease
terminate 30 days thereafter. Lessee shall not be entitled to reimbursement of
any funds contributed by Lessee to repair any such damage or destruction.
Premises Partial Damage due to flood or earthquake shall be subject to Paragraph
9.3, notwithstanding that there may be some insurance coverage, but the net
proceeds of any such insurance shall be made available for the repairs if made
by either Party.

         9.3 PARTIAL DAMAGE--UNINSURED LOSS. If a Premises Partial Damage that
is not an Insured Loss occurs, unless caused by a negligent or willful act of
Lessee (in which event Lessee shall make the repairs at Lessee's expense),
Lessor may either: (i) repair such damage as soon as reasonably possible at
Lessor's expense, in which event this Lease shall continue in full force and
effect, or (ii) terminate this Lease by giving written notice to Lessee within
30 days after receipt by Lessor of knowledge of the occurrence of such damage.
Such termination shall be effective 60 days following the date of such notice.
In the event Lessor elects to terminate this Lease, Lessee shall have the right
within 10 days after receipt of the termination notice to give written notice to
Lessor of Lessee's commitment to pay for the repair of such damage without
reimbursement from Lessor. Lessee shall provide Lessor with said funds or
satisfactory assurance thereof within 30 days after making such commitment. In
such event this Lease shall continue in full force and effect, and Lessor shall
proceed to make such repairs as soon as reasonably possible after the required
funds are available. If Lessee does not make the required commitment, this Lease
shall terminate as of the date specified in the termination notice.

         9.4 TOTAL DESTRUCTION. Notwithstanding any other provision hereof, if
Premises Total Destruction occurs, this Lease shall terminate 60 days following
such Destruction. If the damage or destruction was caused by the gross
negligence or willful misconduct of Lessee, Lessor shall have the right to
recover Lessor's damages from Lessee, except as provided in Paragraph 9.7.

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<PAGE>

         9.5 DAMAGE NEAR END OF TERM. If at any time during the last 6 months of
this Lease there is damage for which the cost to repair exceeds one month's Base
Rent, whether or not an Insured Loss, Lessor may terminate this Lease effective
60 days following the date of occurrence of such damage by giving a written
termination notice to Lessee within 30 days after the date of occurrence of such
damage. Notwithstanding the foregoing, if Lessee at that time has an exercisable
option to extend this Lease or to purchase the Premises, then Lessee may
preserve this Lease by, (a) exercising such option and (b) providing Lessor with
any shortage in insurance proceeds (or adequate assurance thereof) needed to
make the repairs on or before the earlier of (i) the date which is 10 days after
Lessee's receipt of Lessor's written notice purporting to terminate this Lease,
or (ii) the day prior to the date upon which such option expires. If Lessee duly
exercises such option during such period and provides Lessor with funds (or
adequate assurance thereof) to cover any shortage in insurance proceeds, Lessor
shall, at Lessor's commercially reasonable expense, repair such damage as soon
as reasonably possible and this Lease shall continue in full force and effect.
If Lessee fails to exercise such option and provide such funds or assurance
during such period, then this Lease shall terminate as of the date set forth in
the first sentence of this Paragraph 9.5.

         9.6      ABATEMENT OF RENT; LESSEE'S REMEDIES.

                  (a) ABATEMENT. In the event of (i) Premises Partial Damage or
(ii) Premises Total Destruction or a Hazardous Substance Condition for which
Lessee is not legally responsible, the Base Rent, Common Area Operating Expenses
and other charges, if any, payable by Lessee hereunder for the period during
which such damage or condition, its repair, remediation or restoration
continues, shall be abated in proportion to the degree to which Lessee's use of
the premises is impaired, but not in excess of proceeds from insurance required
to be carried under Paragraph 8.3(b). Except for abatement of Base, Rent, Common
Area Operating Expenses and other charges, if any, as aforesaid, all other
obligations of Lessee hereunder shall be performed by Lessee, and Lessee shall
have no claim against Lessor for any damage suffered by reason of any such
damage, destruction, repair, remediation or restoration.

                  (b) If Lessor shall be obligated to repair or restore the
Premises and does not commence, in a substantial and meaningful way, such repair
or restoration within 90 days after such obligation shall accrue, Lessee may, at
any time prior to the commencement of such repair or restoration, give written
notice to Lessor and to any Lenders of which Lessee has actual notice, of
Lessee's election to terminate this Lease on a date not less than 60 days
following the giving of such notice. If Lessee gives such notice and such repair
or restoration is not commenced within 30 days thereafter, this Lease shall
terminate as of the date specified in said notice. If the repair or restoration
is commenced within such 30 days thereafter, this Lease shall continue in full
force and effect. "Commence" shall mean either the unconditional authorization
of the preparation of the required plans, or the beginning of the actual work on
the Premises, whichever first occurs. SEE ADDENDUM I FOR CONTINUATION.

         9.7 HAZARDOUS SUBSTANCE CONDITIONS. If a Hazardous Substance Condition
occurs, unless Lessee is legally responsible therefor (in which case Lessee
shall make the investigation and remediation thereof required by Applicable
Requirements and this Lease shall continue in full force and effect, but subject
to Lessor's rights under Paragraph 6.2(c) and Paragraph 1.3), Lessor may act
Lessor's option either (i) investigate and remediate such Hazardous Substance
condition, if required, as soon as reasonably possible at Lessor's expense, in
which event this Lease shall continue in full force and effect, or (ii) if the
estimated cost to investigate and remediate such condition exceeds twelve (12)
times the then monthly Base Rent or $100,000, whichever is greater, give written
notice to Lessee within thirty (30) days after receipt by Lessor of knowledge of
the occurrence of such Hazardous Substance Condition of Lessor's desire to
terminate this Lease as of the date sixty (60) days following the date of such
notice. In the event Lessor elects to give such notice of Lessor's intention to
terminate this Lease, Lessee shall have the right within ten (10) days after the
receipt of such notice to give written notice to Lessor of Lessee's commitment
to pay for the excess costs of (a) investigation and remediation of such
Hazardous Substance Condition to the extent required by Applicable Requirements,
over (b) an amount equal to twelve (12) times the then monthly Base Rent or
$100,000, whichever is greater. Lessee shall provide Lessor with the funds
required of Lessee or satisfactory assurance thereof within thirty (30) days
following said commitment by Lessee. In such event this Lease shall continue in
full force and effect, and Lessor shall proceed to make such investigation and

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<PAGE>

remediation as soon as reasonably possible after the required funds are
available. If Lessee does not give such notice and provide the required funds or
assurance thereof within the time period specified above, this Lease shall
terminate as of the date specified in lessor's notice of termination. (See
Addendum 1 for Continuation).

         9.8 TERMINATION -- ADVANCE PAYMENTS. Upon termination of this Lease
pursuant to this Paragraph 9, Lessor shall return to Lessee any advance payment
made by Lessee to Lessor and so much of Lessee's Security Deposit as has not
been, or is not then required to be, used by Lessor under the terms of this
Lease.

         9.9 WAIVER OF STATUTES. Lessor and Lessee agree that the terms of this
Lease shall govern the effect of any damage to or destruction of the Premises
and the Building with respect to the termination of this Lease and hereby waive
the provisions of any present or future statute to the extent it is inconsistent
herewith.

10.      REAL PROPERTY TAXES.

         10.1 PAYMENT OF TAXES. Except as otherwise provided in Paragraph 10.3,
Lessor shall pay the Real Property Taxes applicable to the Project, and said
payments shall be included in the calculation of Operating Expenses in
accordance with the provisions of Paragraph 4.2.

         10.2 REAL PROPERTY TAX DEFINITIONS. As used herein, the term "REAL
PROPERTY TAXES" shall include any form of assessment; real estate, general,
special, ordinary or extraordinary, or rental levy or tax (other than
inheritance, personal income or estate taxes); Improvement bond; and/or license
fee imposed upon or levied against any legal or equitable interest of Lessor in
the Project, Lessor's right to other income therefrom, and/or Lessor's business
of leasing, by any authority having the direct or indirect power to tax and
where the funds are generated with reference to the Project address and where
the proceeds so generated are to be applied by the city, county or other local
taxing authority of a jurisdiction within which the Project is located. "REAL
PROPERTY TAXES" shall also include any tax, fee, levy, assessment or charge, or
any increase therein, imposed by reason of events occurring during the term of
this Lease, including but not limited to, a change in the ownership of the
Project or any portion thereof or a change in the improvements thereon.

         10.3 ADDITIONAL IMPROVEMENTS. Operating Expenses shall not include Real
Property Taxes specified in the tax assessor's records and work sheets as being
caused by additional improvements placed upon the Project by other lessees or by
Lessor for the exclusive enjoyment of such other lessees. Notwithstanding
Paragraph 10.2 hereof, Lessee shall, however, pay to Lessor at the time
Operating Expenses are payable under Paragraph 4.2, the entirety of any increase
in Real Property Taxes if assessed solely by reason of Alterations, Trade
Fixtures or Utility Installations placed upon the Premises by Lessee or at
Lessee's request.

         10.4 JOINT ASSESSMENT. If the Building is not separately assessed, Real
Property Taxes allocated to the Building shall be an equitable proportion of the
Real Property Taxes for all of the land and improvements included within the tax
parcel assessed, such proportion to be determined by Lessor from the respective
valuations assigned in the assessor's work sheets or such other information as
may be reasonably available. Lessor's reasonable determination thereof, in good
faith, shall be conclusive.

         10.5 LESSEE'S PROPERTY TAXES. Lessee shall pay prior to delinquency all
taxes assessed against and levied upon Lessee Owned Alterations and Utility
Installations, Trade Fixtures, furnishings, equipment and all personal property
of Lessee contained in the Premises. When possible, Lessee shall cause its
Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings,
equipment and all other personal property to be assessed and billed separately
from the real property of Lessor. If any of Lessee's said property shall be
assessed with Lessor's real property, Lessee shall pay Lessor the taxes
attributable to Lessee's property within 10 days after receipt of a written
statement setting forth the taxes applicable to Lessee's property.

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11. UTILITIES. Lessee shall pay directly for all utilities and services supplied
to the Premises, including but not limited to electricity, telephone, security,
gas and cleaning of the Premises, together with any taxes thereon. If any such
utilities or services are not separately metered to the Premises or separately
billed to the Premises, Lessee shall pay to Lessor a reasonable proportion to be
determined by Lessor of all such charges jointly metered or billed with other
premises in the Building, in the manner and within the time periods set forth in
Paragraph 4.2(d).

12.      ASSIGNMENT AND SUBLETTING.

         12.1     LESSOR'S CONSENT REQUIRED.

                  (a) Lessee shall not voluntarily or by operation of law
assign, transfer, mortgage or encumber (collectively, "ASSIGN") or sublet all or
any part of Lessee's interest in this Lease or in the Premises without Lessor's
prior written consent. Any net profits resulting from a sublease will be split
50%/50% between Lessor and Lessee.

                  (b) Unless Lessee is a corporation and its stock is publicly
traded on a national stock exchange, a change in the control of Lessee shall
constitute an assignment requiring consent. The transfer, on a cumulative basis,
of 25% or more of the voting control of Lessee shall constitute a change in
control for this purpose.

                  (c) The involvement of Lessee or its assets in any
transaction, or series of transactions (by way of merger, sale, acquisition,
financing, transfer, leveraged buyout or otherwise), whether or not a formal
assignment or hypothecation of this Lease or Lessee's assets occurs, which
results or will result in a reduction of the Net Worth of Lessee to below
$200,000,000 market capitalization of such Net Worth as it was represented at
the time of the execution of this Lease or at the time of the most recent
assignment to which Lessor has consented, or as it exists immediately prior to
said transaction or transactions constituting such reduction, whichever was or
is greater, shall be considered an assignment of this Lease to which Lessor may
withhold its consent. "NET WORTH OF LESSEE" shall mean the net worth of Lessee
(excluding any guarantors) established under generally accepted accounting
principles.

                  (d) An assignment or subletting of 50% of Lessee's space or
more without consent shall, at Lessor's option, be a Default curable after
notice per Paragraph 13.1(c), or a noncurable Breach without the necessity of
any notice and grace period. If Lessor elects to treat such unapproved
assignment or subletting as a noncurable Breach, Lessor may either: (i)
terminate this Lease, or (ii) upon 30 days written notice, increase the monthly
Base Rent to 110% of the Base Rent then in effect. Further, in the event of such
Breach and rental adjustment, (i) the purchase price of any option to purchase
the Premises held by Lessee shall be subject to similar adjustment to 110% of
the price previously in effect, and (ii) all fixed and non-fixed rental
adjustments scheduled during the remainder of the Lease term shall be increased
in 110% of the scheduled adjusted rent.

                  (e) Lessee's remedy for any breach of Paragraph 12.1 by Lessor
shall be limited to compensatory damages and/or injunctive relief.

         12.2     TERMS AND CONDITIONS APPLICABLE TO ASSIGNMENT AND SUBLETTING.

                  (a) Regardless of Lessor's consent, no assignment or
subletting shall: (i) be effective without the express written assumption by
such assignee or sublessee of the obligations of Lessee under this Lease, (ii)
release Lessee of any obligations hereunder, or (iii) alter the primary
liability of Lessee for the payment of Rent or for the performance of any other
obligations to be performed by Lessee.

                  (b) Lessor may accept Rent or performance of Lessee's
obligations from any person other than Lessee pending approval or disapproval of
an assignment. Neither a delay in the approval or disapproval of such assignment
nor the acceptance of Rent or performance shall constitute a waiver or estoppel
of Lessor's right to exercise its remedies for Lessee's Default or Breach.

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                  (c) Lessor's consent to any assignment or subletting shall not
constitute a consent to any subsequent assignment or subletting.

                  (d) In the event of any Default or Breach by Lessee, Lessor
may proceed directly against Lessee, any Guarantors or anyone else responsible
for the performance of Lessee's obligations under this Lease, including any
assignee or sublessee, without first exhausting Lessor's remedies against any
other person or entity responsible therefore to Lessor, or any security held by
Lessor.

                  (e) Each request for consent to an assignment or subletting
shall be in writing, accompanied by information relevant to Lessor's
determination as to the financial and operational responsibility and
appropriateness of the proposed assignee or sublessee, including but not limited
to the intended use and/or required modification of the Premises, if any. Lessee
agrees to provide Lessor with such other or additional information and/or
documentation as may be reasonably requested. (See also Paragraph 36)

                  (f) Any assignee of, or sublessee under, this Lease shall, by
reason of accepting such assignment or entering into such sublease, be deemed to
have assumed and agreed to conform and comply with each and every term,
covenant, condition and obligation herein to be observed or performed by Lessee
during the term of said assignment or sublease, other than such obligations as
are contrary to or inconsistent with provisions of an assignment or sublease to
which Lessor has specifically consented to in writing.

                  (g) Lessor's consent in any assignment or subletting shall not
transfer to the assignee or sublessee any Option granted to the original Lessee
by this Lease unless such transfer is specifically consented to by Lessor in
writing. (See Paragraph 39.2)

         12.3 ADDITIONAL TERMS AND CONDITIONS APPLICABLE TO SUBLETTING. The
following terms and conditions shall apply to any subletting by Lessee of all or
any part of the Premises and shall be deemed included in all subleases under
this Lease whether or not expressly incorporation therein:

                  (a) Lessee hereby assigns and transfers to Lessor all of
Lessee's interest in all Rent payable on any sublease, and Lessor may collect
such Rent and apply same toward Lessee's obligations under this Lease; provided,
however, that until a Breach shall occur in the performance of Lessee's
obligations, Lessee may collect said Rent. Lessor shall not, by reason of the
foregoing or any assignment of such sublease, nor by reason of the collection of
Rent, be deemed liable to sublessee for any failure of Lessee to perform and
comply with any of Lessee's obligations to such sublessee. Lessee hereby
irrevocably authorizes and directs any such sublessee, upon receipt of a written
notice from Lessor stating that a Breach exists in the performance of Lessee's
obligations under this Lease, to pay to Lessor all Rent due and to become due
under the sublease. Sublease shall rely upon any such notice from Lessor and
shall pay all Rents to Lessor without any obligation or right to inquire as to
whether such Breach exists, notwithstanding any claim from Lessee to the
contrary.

                  (b) In the event of a Breach by Lessee, Lessor may, at its
option, require sublessee to attorn to Lessor, in which event Lessor shall
undertake the obligations of the sublessor under such sublease from the time of
the exercise of said option to the expiration of such sublease; provided,
however, Lessor shall not be liable for any prepaid rents or security deposit
paid by such sublessee to such sublessor or for any prior Defaults or Breaches
of such sublessor.

                  (c) Any matter requiring the consent of the sublessor under a
sublease shall also require the consent of Lessor.

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                  (d) No sublessee shall further assign or sublet all or any
part of the Premises without Lessor's prior written consent.

                  (e) Lessor shall deliver a copy of any notice of Default or
Breach by Lessee to the sublessee, who shall have the right to cure the Default
of Lessee within the grace period, if any, specified in such notice. The
sublessee shall have a right of reimbursement and offset from and against Lessee
for any such Defaults cured by the sublessee.

13.      DEFAULT; BREACH; REMEDIES.

         13.1 DEFAULT; BREACH. A "DEFAULT" is defined as a failure by the Lessee
to comply with or perform any of the terms, covenants, conditions or Rules and
Regulations under this Lease. A "BREACH" is defined as the occurrence of one or
more of the following Defaults, and the failure of Lessee to cure such Default
within any applicable grace period:

                  (a) The abandonment of the Premises; or the vacating of the
Premises without providing a commercially reasonable level of security, or where
the coverage of the property insurance described in Paragraph 8.3 is jeopardized
as a result thereof, or without providing reasonable assurances to minimize
potential vandalism.

                  (b) The failure of Lessee to make any payment of Rent or any
Security Deposit required to be made by Lessee hereunder, whether to Lessor or
to a third party, when due, to provide reasonable evidence of insurance or
surety bond, or to fulfill any obligation under this Lease which endangers or
threatens life or property, where such failure continues for a period of 3
business days following written notice to Lessee.

                  (c) The failure by Lessee to provide (i) reasonable written
evidence of compliance with Applicable Requirements, (ii) the service contracts,
(iii) the rescission of an unauthorized assignment or subletting, (iv) an
Estoppel Certificate, (v) a requested subordination, (vi) evidence concerning
any guaranty and/or Guarantor, (vii) any document requested under Paragraph 41
(easements), or (viii) any other documentation or information which Lessor may
reasonably require of Lessee under the terms of this Lease, where any such
failure continues for a period of 10 days following written notice to Lessee.

                  (d) A Default by Lessee as to the terms, covenants, conditions
or provisions of this Lease, or of the rules adopted under Paragraph 2.9 hereof,
other than those described in subparagraphs 13.1(a), (b) or (c), above, where
such Default continues for a period of 30 days after written notice; provided,
however, that if the nature of Lessee's Default is such that more than 30 days
are reasonably required for its cure, then it shall not be deemed to be a Breach
if Lessee commences such cure within said 30 day period and thereafter
diligently prosecutes such cure to completion.

                  (e) The occurrence of any of the following events: (i) the
making of any general arrangement or assignment for the benefit of creditors;
(ii) becoming a "DEBTOR" as defined in 11 U.S.C. ss. 101 or any successor
statute thereto (unless, in the case of a petition filed against Lessee, the
same is dismissed within 60 days); (iii) the appointment of a trustee or
receiver to take possession of substantially all of Lessee's assets located at
the Premises or of Lessee's interest in this Lease, where possession is not
restored to Lessee within 30 days; or (iv) the attachment, execution or other
judicial seizure of substantially all of Lessee's assets located at the Premises
or of Lessee's interest in this Lease, where such seizure is not discharged
within 30 days; provided, however, in the event that any provision of this
subparagraph (e) is contrary to any applicable law, such provision shall be of
no force or effect, and not affect the validity of the remaining provisions.

                  (f) The discovery that any financial statement of Lessee or of
any Guarantor given to Lessor was materially false.

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                  (g) If the performance of Lessee's obligations under this
Lease is guaranteed: (i) the death of a Guarantor, (ii) the termination of a
Guarantor's liability with respect to this Lease other than in accordance with
the terms of such guaranty, (iii) a Guarantor's becoming insolvent or the
subject of a bankruptcy filing, (iv) a Guarantor's refusal to honor the
guaranty, or (v) a Guarantor's breach of its guaranty obligation on an
anticipatory basis, and Lessee's failure, within 60 days following written
notice of any such event, to provide written alternative assurance or security,
which, when coupled with the then existing resources of Lessee, equals or
exceeds the combined financial resources of Lessee and the Guarantors that
existed at the time of execution of this Lease.

         13.2 REMEDIES. If Lessee fails to perform any of its affirmative duties
or obligations, within 10 days after written notice (or in case of an emergency,
without notice), Lessor may, at its option, perform such duty or obligation on
Lessee's behalf, including but not limited to the obtaining of reasonably
required bonds, insurance policies, or governmental licenses, permits or
approvals. The costs and expenses of any such performance by Lessor shall be due
and payable by Lessee upon receipt of invoice therefor. If any check given to
Lessor by Lessee shall not be honored by the bank upon which it is drawn,
Lessor, at its option, may require all future payments to be made by Lessee to
be by cashier's check. In the event of a Breach, Lessor may, with or without
further notice or demand, and without limiting Lessor in the exercise of any
right or remedy which Lessor may have by reason of such Breach:

                  (a) Terminate Lessee's right to possession of the Premises by
any lawful means, in which case this Lease shall terminate and Lessee shall
immediately surrender possession to Lessor. In such event Lessor shall be
entitled to recover from Lessee: (i) the unpaid Rent which had been earned at
the time of termination; (ii) the worth at the time of award of the amount by
which the unpaid rent which would have been earned after termination until the
time of award exceeds the amount of such rental loss that the Lessee proves
could have been reasonably avoided; (iii) the worth at the time of award of the
amount by which the unpaid rent for the balance of the term after the time of
award exceeds the amount of such rental loss that the Lessee proves could be
reasonably avoided; and (iv) any other amount necessary to compensate Lessor for
all the detriment proximately caused by the Lessee's failure to perform its
obligations under this Lease or which in the ordinary course of things would be
likely to result therefrom, including but not limited to the cost of recovering
possession of the Premises, expenses of reselling, including necessary
renovation and alteration of the Premises, reasonable attorneys' fees, and that
portion of any leasing commission paid by Lessor in connection with this Lease
applicable to the unexpired term of this Lease. The worth at the time of award
of the amount referred to in provision (iii) of the immediately preceding
sentence shall be computed by discounting such amount at the discount rate of
the Federal Reserve Bank of the District within which the Premises are located
at the time of award plus one percent. Efforts by Lessor to mitigate damages
caused by Lessee's Breach of this Lease shall not waive Lessor's right to
recover damages under Paragraph 12. If termination of this Lease is obtained
through the provisional remedy of unlawful detainer, Lessor shall have the right
to recover in such proceeding any unpaid Rent and damages as are recoverable
therein, or Lessor may reserve the right to recover all or any part thereof in a
separate suit. If a notice and grace period required under Paragraph 13.1 was
not previously given, a notice to pay rent or quit, or to perform or quit given
to Lessee under the unlawful detainer statute shall also constitute the notice
required by Paragraph 13.1. In such case, the applicable grace period required
by Paragraph 13.1 and the unlawful detainer statute shall run concurrently, and
the failure of Lessee to cure the Default within the greater of the two such
grace periods shall constitute both an unlawful detainer and a Breach of this
Lease entitling Lessor to the remedies provided for in this Lease and/or by said
statute.

                  (b) Continue the Lease and Lessee's right to possession and
recover the Rent as it becomes due, in which event Lessee may sublet or assign,
subject only to reasonable limitations. Acts of maintenance, efforts to relet,
and/or the appointment of a receiver to protect the Lessor's interests, shall
not constitute a termination of the Lessee's right to possession.

                  (c) Pursue any other remedy now or hereafter available under
the laws or judicial decisions of the state wherein the Premises are located.
The expiration or termination of this Lease and/or the termination of Lessee's
right to possession shall not relieve Lessee from liability under any indemnity
provisions of this Lease as to matters occurring or accruing during the term
hereof or by reason of Lessee's occupancy of the Premises.

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<PAGE>

         13.4 LATE CHARGES. Lessee hereby acknowledges that late payment by
Lessee of Rent will cause Lessor to incur costs not contemplated by this Lease,
the exact amount of which will be extremely difficult to ascertain. Such costs
include, but are not limited to, processing and accounting charges, and late
charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent
shall not be received by Lessor within 5 business days after such amount shall
be due, then, without any requirement for notice to Lessee, Lessee shall pay to
Lessor a one-time late charge equal to 5% for delay of less than 10 days and 10%
for delay beyond 10 days of each such overdue amount. The parties hereby agree
that such late charge represents a fair and reasonable estimate of the costs
Lessor will incur by reason of such late payment. Acceptance of such late charge
by Lessor shall in no event constitute a waiver of Lessee's Default or Breach
with respect to such overdue amount, nor prevent the exercise of any of the
other rights and remedies granted hereunder. In the event that a late charge is
payable hereunder, whether or not collected, for 3 consecutive installments of
Base Rent, then notwithstanding any provision of this Lease to the contrary,
Base Rent shall, at Lessor's option, become due and payable quarterly in
advance.

         13.5 BREACH BY LESSOR. Lessor shall not be deemed in breach of this
Lease unless Lessor fails within a reasonable time to perform an obligation
required to be performed by Lessor. For purposes of this Paragraph, a reasonable
time shall in no event be less than 30 days after receipt by Lessor, and any
Lender whose name and address shall have been furnished Lessee in writing for
such purpose, of written notice specifying wherein such obligation of Lessor has
not been performed; provided, however, that if the nature of Lessor's obligation
is such that more than 30 days are reasonably required for its performance, then
Lessor shall not be in breach if performance is commenced within such 30 day
period and thereafter diligently pursued to completion.

14. CONDEMNATION. If the Premises or any portion thereof are taken under the
power of eminent domain or sold under the threat of the exercise of said power
(collectively "CONDEMNATION"), this Lease shall terminate as to the part taken
as of the date the condemning authority takes title or possession, whichever
first occurs. If more than 10% of the rentable floor area of the Premises, or
more than 25% of Lessee's Reserved Parking Spaces, if any, are taken by
Condemnation, Lessee may, at Lessee's option, to be exercised in writing within
10 days after Lessor shall have given Lessee written notice of such taking (or
in the absence of such notice, within 10 days after the condemning authority
shall have taken possession) terminate this Lease as of the date the condemning
authority takes such possession. If Lessee does not terminate this Lease in
accordance with the foregoing, this Lease shall remain in full force and effect
as to the portion of the Premises remaining, except that the Base Rent shall be
reduced in proportion to the reduction in utility of the Premises caused by such
Condemnation. Condemnation awards and/or payments shall be the property of
Lessor, whether such award shall be made as compensation for diminution in value
of the leasehold, the value of the part taken, or for severance damages;
provided, however, that Lessee shall be entitled to any compensation for
Lessee's relocation expenses, loss of business goodwill and/or Trade Fixtures,
without regard to whether or not this Lease is terminated pursuant to the
provisions of this Paragraph. All Alterations and Utility Installations made to
the Premises by Lessee, for purposes of Condemnation only, shall be considered
the property of the Lessee and Lessee shall be entitled to any and all
compensation which is payable therefor. In the event that this Lease is not
terminated by reason of the Condemnation, Lessor shall repair any damage to the
Premises caused by such Condemnation.

15.      BROKER'S FEES.

         15.1 PROCURING CAUSE. The Broker(s) named in Paragraph 1.10 is/are the
procuring cause of this Lease.

         15.4 REPRESENTATIONS AND WARRANTIES. Lessee and Lessor each represent
and warrant to the other that it has had no dealings with any person, firm,
broker, or finder (other than the Brokers, if any) in connection with this
Lease, and that no one other than said named Brokers is certified to any
commission or finder's fee in connection herewith. Lessee and Lessor do each
hereby agree to indemnify, protect, defend and hold the other harmless from and
against liability for compensation or charges which may be claimed by any such
unnamed broker, finder or other similar party by reason of any dealings or
actions of the indemnifying Party, including any costs, expenses, attorneys'
fees reasonably incurred with respect thereto.

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17. LESSOR'S LIABILITY. The term "LESSOR" as used herein shall mean the owner or
owners at the time in question of the fee title to the Premises, or, if this is
a sublease, of the Lessee's interest in the prior lease. In the event of a
transfer of Lessor's title or interest in the Premises or this Lease, Lessor
shall deliver to the transferee or assignee (in cash or by credit) any unused
Security Deposit held by Lessor. Except as provided in Paragraph 15, upon such
transfer or assignment and delivery of the Security Deposit, as aforesaid, the
prior Lessor shall be relieved of all liability with respect to the obligations
and/or covenants under this Lease thereafter to be performed by the Lessor.
Subject to the foregoing, the obligations and/or covenants in this Lease to be
performed by the Lessor shall be binding only upon the Lessor as hereinabove
defined.

18. SEVERABILITY. The invalidity of any provision of this Lease, as determined
by a court of competent jurisdiction, shall in no way affect the validity of any
other provision hereof.

19. INTEREST ON PAST-DUE OBLIGATIONS. Any monetary payment due Lessor hereunder,
other than late charges, not received by Lessor within ten (10) days following
the date on which it was due, shall bear interest from the date due at the prime
rate charged by the largest state chartered bank in the state in which the
Premises are located plus four percent (4%) per annum, but not exceeding the
maximum rate allowed by law, in addition to the potential late charge provided
for in Paragraph 13.4.

20. TIME OF ESSENCE. Time is of the essence with respect to the performance of
all obligations to be performed or observed by the Parties under this Lease.

21. RENT DEFINED. All monetary obligation of Lessee to Lessor under the terms of
this Lease are deemed to be rent.

22. NO PRIOR OR OTHER AGREEMENTS; BROKER DISCLAIMER. This Lease contains all
agreements between the Parties with respect to any matter mentioned herein, and
no other prior or contemporaneous agreement or understanding shall be effective.
Lessor and Lessee each represents and warrants to the Brokers that it has made,
and is relying solely upon, its own investigation as to the nature, quality,
character and financial responsibility of the other Party to this Lease and as
to the use, nature, quality and character of the Premises. Brokers have no
responsibility with respect thereto or with respect to any default or breach
hereof by either Party. The liability (including court costs and attorneys'
fees) of any Broker with respect to negotiation, execution, delivery or
performance by either Lessor or Lessee under this Lease or any amendment or
modification hereto shall be limited to an amount up to the fee received by such
Broker pursuant to this Lease; provided, however, that the foregoing limitation
on each Broker's liability shall not be applicable to any gross negligence or
willful misconduct of such Broker.

23. NOTICES.

         23.1 NOTICE REQUIREMENTS. All notices required or permitted by this
Lease or applicable law shall be in writing and may be delivered in person (by
hand or by courier) or may be sent by regular, certified or registered mail or
U.S. Postal Service Express Mail, with postage prepaid, or by facsimile
transmission, and shall be deemed sufficiently given if served in a manner
specified in this Paragraph 23. The addresses noted adjacent to a Party's
signature on this Lease shall be that Party's address for delivery or mailing of
notices. Either Party may be written notice to the other specify a different
address for notice, except that upon Lessee's taking possession of the Premises,
the Premises shall constitute Lessee's address for notice. A copy of all notices
to Lessor shall be concurrently transmitted to such party or parties at such
addresses as Lessor may from time to time hereafter designate in writing.

         23.2 DATE OF NOTICE. Any notice sent by registered or certified mail,
return receipt requested, shall be deemed given on the date of delivery shown on
the receipt card, or if no delivery date is shown, the postmark thereon. If sent
by regular mail the notice shall be deemed given 48 hours after the same is
addressed as required herein and mailed with postage prepaid. Notices delivered
by United States Express Mail or overnight courier that guarantee next day
delivery shall be deemed given 24 hours after delivery of the same to the Postal
Service or courier. Notices transmitted by facsimile transmission or similar

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means shall be deemed delivered upon telephone confirmation of receipt
(confirmation report from fax machine is sufficient), provided a copy is also
delivered via delivery or mail. If notice is received on a Saturday, Sunday or
legal holiday, it shall be deemed received on the next business day.

24. WAIVERS. No waiver by Lessor of the Default or Breach of any term, covenant
or condition hereof by Lessee, shall be deemed a waiver of any other term,
covenant or condition hereof, or of any subsequent Default or Breach by Lessee
of the same or of any other term, covenant or condition hereof. Lessor's consent
to, or approval of, any act shall not be deemed to render unnecessary the
obtaining of Lessor's consent to, or approval of, any subsequent or similar act
by Lessee, or be construed as the basis of an estoppel to enforce the provision
or provisions of this Lease requiring such consent. The acceptance of Rent by
Lessor shall not be a waiver of any Default or Breach by Lessee. Any payment by
Lessee may be accepted by Lessor on account of moneys or damages due Lessor,
notwithstanding any qualifying statements or conditions made by Lessee in
connection therewith, which such statements and/or conditions shall be of no
force or effect whatsoever unless specifically agreed to in writing by Lessor at
or before the time of deposit of such payment.

25. RECORDING. Either Lessor or Lessee shall, upon request of the other,
execute, acknowledge and deliver to the other a short form memorandum of this
Lease for recording purposes. The Party requesting recondition shall be
responsible for payment of any fees or taxes applicable thereto.

26. NO RIGHT TO HOLDOVER. Lessee has no right to retain possession of the
Premises or any part thereof beyond the expiration or termination of this Lease.
In the event that Lessee holds over, then the Base Rent shall be increased to
125% of the Base Rent applicable immediately preceding the expiration or
termination. Nothing contained herein shall be construed as consent by Lessor to
any holding over by Lessee.

27. CUMULATIVE REMEDIES. No remedy or election hereunder shall be deemed
exclusive but shall, wherever possible, be cumulative with all other remedies of
law or in equity.

28. COVENANTS AND CONDITIONS. All provisions of this Lease to be observed or
performed by Lessee are both covenants and conditions. 29. BINDING EFFECT;
CHOICE OF LAW. This Lease shall be binding upon the Parties, their personal
representatives, successors and assigns and be governed by the laws of the State
in which the Premises are located. Any litigation between the Parties hereto
concerning this Lease shall be initiated in the county in which the Premises are
located.

30. SUBORDINATION; ATTORNMENT; NON-DISTURBANCE.

         30.1 SUBORDINATION. This Lease and any Option granted hereby shall be
subject and subordinate to any ground lease, mortgage, deed of trust, or other
hypothecation or security device (collectively, "SECURITY DEVICE"), now or
hereafter placed upon the Premises, to any and all advances made on the security
thereof, and to all renewals, modifications, and extensions thereof. Lessee
agrees that the holders of any such Security Devices (in this Lease together
referred to as "LENDER") shall have no liability or obligation to perform any of
the obligations of Lessor under this Lease. Any Lender may elect to have this
Lease and/or any Option granted hereby superior to the lien of its Security
Device by giving written notice thereof to Lessee, whereupon this Lease and such
Options shall be deemed prior to such Security Device, notwithstanding the
relative dates of the documentation or recondition thereof.

         30.2 ATTORNMENT. In the event that Lessor transfers title to the
Premises, or the Premises are acquired by another upon the foreclosure or
termination of a Security Device to which this Lease is subordinated (i) Lessee
shall, subject to the non-disturbance provisions of Paragraph 30.3 attorn to
such new owner, and upon request, enter into a new lease, containing all of the
terms and provisions of this Lease, with such now owner for the remainder of the
term hereof, or, at the election of such new owner, this Lease shall
automatically become a new lease between Lessee and such new owner, upon all of
the terms and conditions hereof, for the remainder of the term hereof, and (ii)
Lessor shall thereafter be relieved of any further obligations hereunder and

                                                                  Initials _____
                                       22

<PAGE>

such new owner shall assume all of Lessor's obligations hereunder, except that
such new owner shall not: (a) be liable for any act or omission of any prior
lessor or with respect to events occurring prior to acquisition of ownership:
(b) be subject to any offsets or defenses which Lessee might have against any
prior lessor, (c) be bound by prepayment of more than one month's rent, or (d)
be liable for the return of any security deposit paid to any prior lessor.

         30.3 NON-DISTURBANCE. With respect to Security Devices entered into by
Lessor after the execution of this Lease, Lessee's subordination of this Lease
shall be subject to receiving a commercially reasonable non-disturbance
agreement (a "NON-DISTURBANCE AGREEMENT") from the Lender which Non-Disturbance
Agreement provides that Lessee's possession of the Premises, and this Lease,
including any options to extend the term hereof, will not be disturbed so long
as Lessee is not in Breach hereof and attorns to the record owner of the
Premises. Further, within 60 days after the execution of this Lease, Lessor
shall use its commercially reasonable efforts to obtain a Non-Disturbance
Agreement from the holder of any pre-existing Security Device which is secured
by the Premises. In the event that Lessor is unable to provide the
Non-Disturbance Agreement within said 60 days, then Lessee may, at Lessee's
option, directly contact Lender and attempt to negotiate for the execution and
delivery of a Non-Disturbance Agreement.

         30.4 SELF-EXECUTING. The agreements contained in this Paragraph 30
shall be effective without the execution of any further documents; provided,
however, that upon written request from Lessor or a Lender in connection with a
sale, financing or refinancing of the Premises, Lessee and Lessor shall execute
such further writings as may be reasonably required to separately document any
subordination, attornment and/or Non-Disturbance Agreement provided for herein.

31. ATTORNEY'S FEES. If any Party or Broker brings an action or proceeding
involving the Premises whether founded in tort, contract or equity, or to
declare rights hereunder, the Prevailing Party (as hereafter defined) in any
such proceeding, action, or appeal thereon, shall be entitled to reasonable
attorneys' fees. Such fees may be awarded in the same suit or recovered in a
separate suit, whether or not such action or proceeding is pursued to decision
or judgment. The term "PREVAILING PARTY" shall include, without limitation, a
Party or Broker who substantially obtains or defeats the relief sought, as the
case may be, whether by compromise, settlement, judgement, or the abandonment by
the other Party or Broker of its claim or defense. The attorneys' fees award
shall not be computed in accordance with any court fee schedule, but shall be
such as to fully reimburse all attorneys' fees reasonable incurred. In addition,
Lessor shall be entitled to attorneys' fees, costs and expenses incurred in the
preparation and service of notices of Default and consultations in connection
therewith, whether or not a legal action is subsequently commenced in connection
with such Default or resulting Breach ($200 is a reasonable minimum per
occurrence for such services and consultation).

32. LESSOR'S ACCESS: SHOWING PREMISES: REPAIRS. Lessor and Lessor's agents shall
have the right to enter the Premises at any time, in the case of an emergency,
and otherwise at reasonable times for the purpose of showing the same to
prospective purchasers, lenders, or tenants, and making such alterations,
repairs, improvements or additions to the Premises as Lessor may deem necessary
or desirable and the erecting, using and maintaining of utilities, services,
pipes and conduits through the Premises and/or other premises as long as there
is no material adverse effect to Lessee's use of the Premises. All such
activities shall be without abatement of rent or liability to Lessee. Lessor may
at any time place on the Premises any ordinary "FOR SALE" signs and Lessor may
during the last 6 months of the term hereof place on the Premises any ordinary
"FOR LEASE" signs. In addition, Lessor shall have the right to retain keys to
the Premises and to unlock all doors in or upon the Premises other than to
files, vaults and safes, and in the case of emergency to enter the Premises by
any reasonably appropriate means, and any such entry shall not be deemed a
forcible or unlawful entry or detainer of the Premises or an eviction. Lessee
waives any charges for damages or injuries or interference with Lessee's
property or business in connection therewith.

33. AUCTIONS. Lessee shall not conduct, nor permit to be conducted, any auction
upon the Premises without Lessor's prior written consent. Notwithstanding
anything to the contrary in this Lease, Lessor shall not be obligated to
exercise any standard of reasonableness in determining whether to grant such
consent.

                                                                  Initials _____
                                       23

<PAGE>

34. SIGNS. Lessee shall not place any sign upon the Project without Lessor's
prior written consent.

35. TERMINATION: MERGER. Unless specifically stated otherwise in writing by
Lessor, the voluntary or other surrender of this Lease by Lessee, the mutual
termination or cancellation hereof, or a termination hereof by Lessor for Breach
by Lessee, shall automatically terminate any sublease or lesser estate in the
Premises; provided however, that Lessor may elect to continue any one or all
existing subtenancies. Lessor's failure within 10 days following any such event
to elect to the contrary by written notice to the holder of any such lesser
interest, shall constitute Lessor's election to have such event constitute the
termination of such interest.

36. CONSENTS. Except as otherwise provided herein, wherever in this Lease the
consent of a Party is required to an act by or for the other Party, such consent
shall not be unreasonably withheld or delayed. Lessor's actual reasonable costs
and expenses (including but not limited to architects', engineers' and other
consultants' fees) incurred in the consideration of, or response to, a request
to, a request by Lessee for any Lessor consent, including but not limited to
consents to an assignment, a subletting or the presence or use of a Hazardous
Substance, shall be paid by Lessee upon receipt of an invoice and supporting
documentation therefor, Lessor's consent to any act, assignment or subletting
shall not constitute an acknowledgment that no Default or Breach by Lessee of
this Lease exists, nor shall such consent be deemed a waiver of any then
existing Default or Breach, except as may be otherwise specially stated in
writing by Lessor at the time of such consent. The failure to specify herein any
particular condition to Lessor's consent shall not preclude the imposition by
Lessor at the time of consent of such further or other conditions as are then
reasonable with reference to the particular matter for which consent is being
given. In the event that either Party disagrees with any determination made by
the other hereunder and reasonably requests the reasons for such determination,
the determining party shall furnish its reasons in writing and in reasonable
detail within 10 business days following such request.

37. GUARANTOR.

         37.1 FORM OF GUARANTY. If there are to be any Guarantors of this Lease
per Paragraph 1.11, the form of the guaranty to be executed by each such
Guarantor shall be in the form most recently published by the American
Industrial Real Estate Association, and each such Guarantor shall have the same
obligations as Lessee under this lease, including but not limited to the
obligation to provide the Tenancy Statement and information required in
Paragraph 16.

         37.2 ADDITIONAL OBLIGATIONS OF GUARANTOR. It shall constitute a Default
of the Lessee under this Lease if any such Guarantor fails or refuses, upon
reasonable request by Lessor to give: (a) evidence of the due execution of the
guaranty called for by this Lease, including the authority of the Guarantor (and
of the party signing on Guarantor's benefit) to obligate such Guarantor on said
guaranty, and resolution of its board of directors authorizing the making of
such guaranty, together with a certificate of incumbency showing the signatures
of the persons authorized to sign on its behalf, (b) current financial
statements of Guarantor as may from time to time be requested by Lessor, (c) a
Tenancy Statement, or (d) written confirmation that the guaranty is still in
effect.

38. QUIET POSSESSION. Subject to payment by Lessee of the Rent and performance
of all the covenants, conditions and provisions on Lessee's part to be observed
and performed under this Lease, Lessee shall have quiet possession and quiet
enjoyment of the Premises during the term hereof.

39.      OPTIONS.

         39.1 DEFINITION. "OPTION" shall mean: (a) the right to extend the term
of or renew this Lease or to extend or renew any lease that Lessee has on other
property of Lessor; (b) the right of first refusal or first offer to lease
either the Premises or other property of Lessor; (c) the right to purchase or
the right of first refusal to purchase the Premises or other property of Lessor.

                                                                  Initials _____
                                       24

<PAGE>

         39.2 OPTIONS PERSONAL TO ORIGINAL LESSEE. Any Option granted to Lessee
in this Lease is personal to the original Lessee, and cannot be assigned or
exercised by anyone other than said original Lessee and only while the original
Lessee is in full possession of the Premises and, if requested by Lessor, with
Lessee certifying that Lessee has no intention of thereafter assigning or
subletting.

         39.3 MULTIPLE OPTIONS. In the event that Lessee has any multiple
Options to extend or renew this Lease, a later Option cannot be exercised unless
the prior Options have been validly exercised.

         39.4     EFFECT OF DEFAULT ON OPTIONS.

                  (a) Lessee shall have no right to exercise an Option: (i)
during the period commencing with the giving of any notice of Default and
continuing until said Default is cured, (ii) during the period of time any Rent
is unpaid (without regard to whether notice thereof is given Lessee), (iii)
during the time Lessee is in Breach of this Lease, or (iv) in the event that
Lessee has been given 3 or more notices of separate Default, whether or not the
Defaults are cured, during the 12 month period immediately preceding the
exercise of the Option.

                  (b) The period of time within which an Option may be exercised
shall not be extended or enlarged by reason of Lessee's inability to exercise an
Option because of the provisions of Paragraph 39.4(a).

                  (c) An Option shall terminate and be of no further force or
effect, notwithstanding Lessee's due and timely exercise of the Option, if,
after such exercise and prior to the commencement of the extended term or
completion of the purchase, (i) Lessee fails to pay Rent for a period of 30 days
after such Rent becomes due (without any necessity of Lessor to give notice
thereof), or (ii) if Lessee commits a Breach of this Lease.

40. RULES AND REGULATIONS. Lessee agrees that it will abide by, and keep and
observe all reasonable rules and regulations ("Rules and Regulations") which
Lessor may make from time to time for the management, safety, care, and
cleanliness of the grounds, the parking and unloading of vehicles and the
preservation of good order, as well as for the convenience of other occupants or
tenants of the Building and the Industrial Center and their invitees.

41. SECURITY MEASURES. Lessee hereby acknowledges that the Rent payable to
Lessor hereunder does not include the cost of guard service or other security
measures, and that Lessor shall have no obligation whatsoever to provide same.
Lessee assumes all responsibility for the protection of the Premises. Lessee,
its agents and invitees and their property from the acts of third parties.

42. RESERVATIONS. Lessor reserves the right from time to time to grant, without
the consent or joinder of Lessee, such easements, rights of way, utility
raceways and dedications that Lessor deems necessary, and to cause the
recondition of parcel maps and restrictions, so long as such easements, rights,
dedications, maps, restrictions, and utility raceways do not unreasonably
interfere with the use of the Premises by Lessee. Lessee agrees to sign any
documents reasonably requested by Lessor to effectuate such rights.

43. PERFORMANCE UNDER PROTEST. If at any time a dispute shall arise as to any
amount or sum of money to be paid by one Party to the other under the provisions
hereof, the Party against whom the obligation to pay the money is asserted shall
have the right to make payment "under protest" and such payment shall not be
regarded as a voluntary payment and there shall survive the right on the part of
said Party to institute suit for recovery of such sum. If it shall be adjudged
that there was no legal obligation on the part of said Party to pay such sum or
any part thereof, said Party shall be entitled to recover such sum or so much
thereof as it was not legally required to pay.

44. AUTHORITY If either Party hereto is a corporation, trust, or general or
limited partnership, or similar entity, each individual executing this Lease on
behalf of such entity represents and warrants that he or she is duly authorized
to execute and deliver this Lease on its behalf. If Lessee is a corporation,

                                                                  Initials _____
                                       25

<PAGE>

trust or partnership, Lessee shall, within thirty (30) days after request by
Lessor, deliver to Lessor evidence satisfactory to Lessor of such authority.

45. CONFLICT. Any conflict between the printed provisions of this Lease and the
typewritten or handwritten provisions shall be controlled by the typewritten or
handwritten provisions.

46. OFFER. Preparation of this Lease by either party or their agent and
submission of same to the other Party shall not be deemed an offer to lease to
the other Party. This Lease is not intended to be binding until executed and
delivered by all Parties hereto.

47. AMENDMENTS. This Lease may be modified only in writing, signed by the
Parties in interest at the time of the modification. As long as they do not
materially change Lessee's obligations hereunder, Lessee agrees to make such
reasonable nonmonetary modifications to this Lease as may be reasonably required
by a Lender in connection with the obtaining of normal financing or refinancing
of the Premises.

48. MULTIPLE PARTIES. If more than one person or entity is named herein as
either Lessor or Lessee, such multiple Parties shall have joint and several
responsibility to comply with the terms of this Lease.

LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND
PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR
INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE
TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE
AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE
PREMISES.

         IF THIS LEASE HAS BEEN FILLED IN, IT HAS BEEN PREPARED FOR YOUR
         ATTORNEY'S REVIEW AND APPROVAL. FURTHER, EXPERTS SHOULD BE CONSULTED TO
         EVALUATE THE CONDITION OF THE PROPERTY FOR THE POSSIBLE PRESENCE OF
         ASBESTOS, UNDERGROUND STORAGE TANKS OR HAZARDOUS SUBSTANCES. NO
         REPRESENTATION OR RECOMMENDATION IS MADE BY THE AMERICAN INDUSTRIAL
         REAL ESTATE ASSOCIATION OR BY THE REAL ESTATE BROKERS OR THEIR
         CONTRACTORS, AGENTS OR EMPLOYEES AS TO THE LEGAL SUFFICIENCY, LEGAL
         EFFECT OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT
         RELATES; THE PARTIES SHALL RELY SOLELY UPON THE ADVICE OF THEIR OWN
         COUNSEL S TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE IF THE
         SUBJECT PROPERTY IS IN A STATE OTHER THAN CALIFORNIA, AN ATTORNEY FROM
         THE STATE WHERE THE PROPERTY IS LOCATED SHOULD BE CONSULTED.

<TABLE>
<CAPTION>

The parties hereto have executed this Lease at the place and on the dates
specified above their respective signatures.

<S>                                                        <C>
Executed at:  SAN FRANCISCO                                Executed at:    TORRANCE, CALIFORNIA
            ---------------                                             --------------------------
on: 1/17/03                                                on:     JANUARY 18, 2003
    -------                                                    ------------------------

By LESSOR:                                                 By LESSEE:
AMB PROPERTY, L.P. A DELAWARE LIMITED PARTNERSHIP          EYE DYNAMICS INC., A NEVADA CORPORATION
-------------------------------------------------          ---------------------------------------

AMB PROPERTY CORPORATION, A MARYLAND CORPORATION           By:    /S/ CHARLES E. PHILLIPS
                                                               -----------------------------------
By:  /S/ MARTIN J. COYNE
    ----------------------------------------------         Name Printed:   CHARLES E. PHILLIPS
         Martin J. Coyne                                               -------------------------
Title:   Vice President
                                                           Title:            PRESIDENT
                                                                  --------------------------------

                                                                  Initials _____

                                       26

<PAGE>

Address: Pier 1, Bay 1, San Francisco, CA 94111          Address:__________________________________
______________________________________________           __________________________________________
Telephone: (415 ) 394-9000                               Telephone: (    ) ________________________
Facsimile   (415 ) 394-0903                              Facsimile: (    ) ________________________

BROKER:                                                 BROKER:

Executed at________________________________             Executed at _______________________________
on: _______________________________________             on:________________________________________
By: _______________________________________             By:________________________________________
Name Printed: _____________________________             Name Printed ______________________________
Title: ____________________________________             Title: ____________________________________
Address: __________________________________             Address:___________________________________

Telephone: (   ) __________________________             Telephone: (   ) __________________________
Facsimile  (   ) __________________________             Facsimile: (   ) __________________________

</TABLE>

NOTE: THESE FORMS ARE OFTEN MODIFIED TO MEET CHANGING REQUIREMENTS OF LAW AND
NEEDS OF THE INDUSTRY. ALWAYS WRITE OR CALL TO MAKE SURE YOU ARE UTILIZING THE
MOST CURRENT FORM: AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION, 345 SO. FIGUEROA
ST., M-1, LOS ANGELES, CA 90071 (213) 687-8777. (213) 687-8777.

                                                                  Initials _____
                                       27
<PAGE>

                                   ADDENDUM I

This Addendum to Lease, hereby amends and forms a part of the Lease dated
January 6, 2003 by and between AMB Property, L.P. , a Delaware limited
partnership, as Lessor, and Eye Dynamics, Inc., as Lessee.

This Addendum to Lease is executed concurrently with the Lease and the
Provisions below shall be supplemental to the remainder of the Lease documents.
Where there is a conflict between any provision of this Addendum and any of the
remainder of the Lease documents, the provisions in this Addendum shall prevail.

PARAGRAPH 4 - RENT
------------------

         4.2      Common Area Operating Expenses

                  (a)      "Common Area Operating Expenses"

                           (x) Heating, Ventilation and Air Conditioning
("HVAC"). Lessee shall reimburse Lessor for the cost of providing the HVAC
maintenance contract for the Premises.. Any service calls will be at the sole
cost and expense of Lessee. However, any failure of major components shall be
repaired at Lessor's expense as long as failure was not caused by the negligence
of Lessee.

PARAGRAPH 9 - DAMAGE OR DESTRUCTION
-----------------------------------

         9.7      Hazardous Substances Conditions (continued)

                  Lessee further agrees and covenants to Lessor, its agents,
employees, affiliates and shareholders (collectively the "Lessor") the
following:

                  (a) To comply with all Environmental Laws in effect, or which
may come into effects, applicable to the Lessee or Lessee's use and occupancy of
the Premises;

                  (b) To immediately notify Lessor, in writing, of any existing,
pending or threatened (i) investigation, inquiry, claim or action by any
governmental authority in connection with any Environmental Laws; (ii) third
party claims; (iii) regulatory actions; and/or (iv) contamination of the
Premises;

                  (c) Lessee shall, at Lessee's expense, investigate, monitor,
remediate, and/or clean-up any Hazardous Material or other environmental
condition on, about, or under the Premises required as a result of Lessee's use
or occupancy of the Premises;

                  (d) To keep the Premises free of any lien imposed pursuant to
any Environmental Laws; and

                  (e) To indemnify, defend, and save Lessor harmless from and
against any and all claims (including personal injury, real or personal property
damage), actions, judgments, damages, penalties, fines, costs, liabilities,
violation of any Environmental Laws or the presence of any Hazardous Materials
on, under or about the Premises.

<PAGE>

                  The Lessee's obligation, responsibilities and liabilities
under this Section shall survive the expiration of this Lease.

                  For purpose of this Section, the following definitions apply:

                  "HAZARDOUS MATERIALS" shall mean: (a) any "hazardous waste"
and/or "hazardous substance" defined pursuant to any Environmental Laws; (b)
asbestos or any substance containing asbestos; (c) polycholorinated biphenyls;
(d) lead; (e) radon; (f) pesticides; (g) petroleum or any other substance
containing hydrocarbons; (h) any substance which, when in the Premises, is
material or waste which (1) by any Environmental Laws requires special handling
or notifications of any governmental authority in its collections, storage,
treatment or disposal or (2) is defined or classified as hazardous, dangerous or
toxic pursuant to any legal requirements.

                  "ENVIRONMENTAL LAWS" shall mean: any and all federal, state
and local laws, statutes, codes, ordinances, regulations, rules or other
requirement relating to human health or safety or to the environments including,
but not limited to those applicable to the storage, treatment, disposal,
handling and release of any Hazardous Materials, all as amended or modified from
time to time.

49.      TENANT IMPROVEMENTS:
         --------------------

         Lessor, at Lessor's sole expense, shall complete the following
improvement prior to Lease Commencement:

         Install new carpet in office area.
         Install new vinyl tile in restroom
         Paint the entire office and warehouse area
         Other general refurbishment as may be necessary

The above referenced improvements shall be completed utilizing Lessor's building
standard grade quality.

50. Lease Preparation. This Lease and Addendum to Lease have been completed as a
courtesy by the Klabin Company. Lessor and Lessee hereby agree to hold harmless
The Klabin Company, including all its agents, subagents, and employees for any
loss or liability including, without limitation, any attorney fees and costs. No
representation is made by The Klabin Company, its agents or employees as to the
accuracy or adequacy of this Lease or its modifications, additions or addendum.
Lessee and Lessor hereby acknowledge being advised by The Klabin Company to have
this Lease and Addendum to Lease reviewed by their respective legal counsel.

LESSOR                                     LESSEE

By :
AMB PROPERTY, L.P. A DELAWARE LIMITED
-------------------------------------
PARTNERSHIP

AMB PROPERTY CORPORATION, A MARYLAND
------------------------------------
CORPORATION
-----------

By:      /S/ MARTIN J. COYNE
         -------------------
             Martin J. Coyne
Title:       Vice President

Eye Dynamics Inc., a Nevada Corporation

By:     /S/ CHARLES E. PHILLIPS, PRES.
     ---------------------------------
Date:        JANUARY 18, 2003
     ---------------------------------

<PAGE>

                                   EXHIBIT "A"

                           FLOOR PLAN OF THE PREMISES

<PAGE>

                                   EXHIBIT "C"

                                  Rent Schedule

MONTH             MONTHLY RENT PSF                   MONTHLY RENTAL
-----             ----------------                   --------------

1-12                       .90                            $1,458
13-24                      .93                            $1,507
25-36                      .96                            $1,555<PAGE>
EXHIBIT 10.6

                    HRL LABORATORIES, LLC - EYE DYNAMICS INC.
                        TECHNOLOGY DEVELOPMENT AGREEMENT

         This Technology Development Agreement ("AGREEMENT") is entered into
this 18th day of November, 2002 (the "EFFECTIVE DATE"), by and between HRL
Laboratories, LLC ("HRL"), having a principal place of business at 3011 Malibu
Canyon Road, Malibu, California 90265, and Eye Dynamics Inc. ("EDI"), located at
2301 West 205th Street, Suite 106, Torrance, CA 90501. HRL and EDI may be
referred to individually as a "PARTY" or collectively as the "PARTIES." All
capitalized terms not otherwise defined herein have the meanings set forth in
Section 1 herein.

         WHEREAS, HRL is a Delaware limited liability company jointly owned by
The Boeing Company, a Delaware corporation ("BOEING"), Amber Engineering ("AMBER
ENGINEERING"), by and through its parent company, Raytheon Company, a Delaware
corporation ("RAYTHEON"), of which Amber Engineering is a wholly-owned
subsidiary, and General Motors Corporation ("GM") (Boeing, Amber Engineering,
Raytheon and GM are sometimes collectively referred to herein as "HRL'S OWNERS")
and conducts applied research and development for these owners and for
government and commercial customers; and

         WHEREAS, HRL desires to maximize value from its technological
expertise, subject to its primary objective to serve the business interests of
its owners; and

         WHEREAS, EDI is a Nevada corporation and produces and markets patented
proprietary products and other services for the institutional, medical and
government markets including SafetyScope(TM), a digital system which identifies
and tracks movements of the human iris ("SAFETYSCOPE"); and

         WHEREAS, the Parties wish to collaborate to further develop Project
Intellectual Property as specifically detailed in Section 2 herein and EXHIBIT 2
attached hereto, subject to the terms and conditions set forth in Section 5
herein; and

         WHEREAS, the Parties recognize that no rights to any Intellectual
Property owned by any Party prior to the Effective Date are being granted to the
other Party under this Agreement; and

         WHEREAS, the Parties do not intend for any of the Project Intellectual
Property to include any Intellectual Property owned by HRL or owned by HRL's
Affiliates; and

         WHEREAS, the Parties have entered into an Agreement to Exchange
Proprietary Information (# 012039) dated April 4, 2001 (the "PROPRIETARY
INFORMATION AGREEMENT"), and attached as EXHIBIT 1 hereto.

         NOW, THEREFORE, in consideration of the foregoing premises and the
mutual promises, covenants and conditions contained in this Agreement, the
Parties hereby agree as follows:

<PAGE>

         1. DEFINITIONS. Capitalized terms used in this Agreement shall have the
meanings set forth below or as otherwise specified herein:

         "365" shall have the meaning set forth in Section 4(g) herein.

         "365(N)" shall have the meaning set forth in Section 4(g) herein.

         "AFFILIATE", with respect to any person or entity, means a business
entity, including successors and assigns, having an ownership interest in such
person or entity, or any corporation, partnership or other entity, including
successors and assigns, that directly, or indirectly, through one or more
intermediaries, controls or is controlled by or is under common control with
such person or entity. Notwithstanding the foregoing, for purposes of this
Agreement, HRL Affiliates include HRL's Owners and their respective Affiliates.

         "ALGORITHM" shall have the meaning set forth in Section 2(a) herein.

         "AGREEMENT" shall have the meaning set forth in the preamble hereto.

         "AMBER ENGINEERING" shall have the meaning set forth in the recitals
hereto.

         "BARBARA MAUCH PROJECT" shall have the meaning set forth in Section
2(d)(iii) herein.

         "BOEING" shall have the meaning set forth in the recitals hereto.

         "CODE" shall have the meaning set forth in Section 4(g) herein.

         "CONFIDENTIAL INFORMATION" means that information as defined in
paragraph 4 of the Letter of Intent and includes such information deemed as
"PROPRIETARY" in paragraph 1 of the Proprietary Information Agreement.

         "EAR" shall have the meaning set forth in Section 9(j) herein.

         "EDI" shall have the meaning set forth in the preamble hereto.

         "EDI CAPITAL STOCK" shall have the meaning set forth in Exhibit 5,
Section (b) herein.

         "EFFECTIVE DATE" shall have the meaning set forth in the preamble
hereto.

         "ENVIRONMENTAL LAWS" means any and all federal, state and local Laws
which are intended to protect the environment and/or human health and safety,
including Laws governing or relating to Hazardous Materials. "ENVIRONMENTAL
LAWS" include the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended by Superfund Amendments and Reauthorization
Act of 1986, 42 U.S.C. ss. 9601 ET SEQ., the Toxic Substances Control Act, 15
U.S.C. ss. 2601 ET SEQ., the Hazardous Materials Transportation Act, 49 U.S.C.
ss. 1802 ET SEQ., the Resource Conservation and Recovery Act, 42 U.S.C. ss. 9601
ET SEQ., the Clean Water Act, 33 U.S.C. ss. 1251 ET SEQ., the Safety Drinking
Water Act, 42 U.S.C. ss. 300f ET SEQ., and the Clean Air Act, 42 U.S.C. ss. 7401
ET SEQ.

         "ERISA" shall have the meaning set forth in Exhibit 5, Section (r)
herein.

                                       2

<PAGE>

         "GM" shall have the meaning set forth in the recitals hereto.

         "HRL" shall have the meaning set forth in the preamble hereto.

         "HRL DIRECTOR" shall have the meaning set forth in Section 3(e) herein.

         "HRL OWNERS" shall have the meaning set forth in the recitals hereto.

         "INTELLECTUAL PROPERTY" means (i) patents, patent applications and
invention disclosures; (ii) trademarks, trade names, corporate names,
copyrights, service marks, Internet domain names, copyrightable works, logos and
slogans (and all translations, adaptations, derivations and combinations of the
foregoing) and any applications for registration of the foregoing, together with
all goodwill associated with each of the foregoing; (iii) trade secrets,
confidential information, formulas, processes, ideas, know-how and inventions;
(iv) computer software, including, but not limited to, source code, executable
code, data, databases and documentation (except for licenses of commercially
available software); and (v) all other intellectual property.

         "ITAR" shall have the meaning set forth in Section 9(j) herein.

         "LATEST BALANCE SHEET" shall have the meaning set forth in Exhibit 5,
Section (e)(ii) herein.

         "LETTER OF INTENT" shall have the meaning set forth in the preamble of
this Agreement.

         "LIEN" means any mortgage, pledge, security interest, encumbrance, lien
or charge of any kind (including, without limitation, any conditional sale or
other title retention agreement or lease in the nature thereof), any sale of
receivables with recourse against EDI, its Subsidiary, or any Affiliate, any
filing or agreement to file a financing statement as debtor under the Uniform
Commercial Code or any similar statute other than to reflect ownership by a
third party of property leased to EDI or its Subsidiary under a lease which is
not in the nature of a conditional sale or title retention agreement, or any
subordination arrangement in favor of another Person (other than any
subordination arising in the ordinary course of business).

         "PARTY" and "PARTIES" shall have the meaning set forth in the Preamble
hereto.

         "PERSON" or "PERSONS" means an individual, a partnership, a
corporation, a limited liability company, an association, a joint stock company,
a trust, a joint venture, an unincorporated organization and a governmental
entity or any department, agency or political subdivision thereof.

         "PROJECT" shall have the meaning set forth in Section 2(a) herein.

         "PROJECT INTELLECTUAL PROPERTY" means any Intellectual Property
relating to the Project and provided by EDI or HRL pursuant to this Agreement or
the Proprietary Information Agreement, and any Intellectual Property developed
by the Parties, together or separately, pursuant to this Agreement.

                                       3

<PAGE>

         "PROJECT PARTICIPANT" means any employee, consultant, intern, advisor,
independent contractor or contract labor assignee of HRL or EDI who at any time
on or after the date of this Agreement, directly or indirectly, works on or is
associated with the development of the Project and/or Project Intellectual
Property. The term Project Participant shall not include law firms, accounting
firms, banking-related institutions, or other entities or individuals not
involved in the research of, the development of or the delivery of technology
and/or scientific services.

         "PROJECT PRODUCT" means any product developed for commercialization
from the Project Intellectual Property.

         "PROJECT SERVICE" means any service developed for commercialization
from the Project Intellectual Property.

         "PROPRIETARY INFORMATION AGREEMENT" shall have the meaning set forth in
the recitals hereto.

         "RAYTHEON" shall have the meaning set forth in the recitals hereto.

         "REGISTRATION RIGHTS AGREEMENT" means the Registration Rights Agreement
entered into by the Parties as of the Effective Date and attached hereto as
EXHIBIT 4.

         "RESTRICTED SECURITIES" means the EDI Capital Stock issued hereunder
and any securities issued with respect to such securities by way of a stock
dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization. As to any
particular Restricted Securities, such securities shall cease to be Restricted
Securities when they have (a) been effectively registered under the Securities
Act and disposed of in accordance with the registration statement covering them,
(b) been distributed to the public through a broker, dealer or market maker
pursuant to Rule 144 (or any similar provision then in force) under the
Securities Act or become eligible for sale pursuant to Rule 144 (or any similar
provision then in force) under the Securities Act or (c) been otherwise
transferred and new certificates for them not bearing the Securities Act legend
set forth in Section 7(a) herein have been delivered by EDI in accordance with
Section 7 herein. Whenever any particular securities cease to be Restricted
Securities, HRL shall be entitled to receive from EDI, without expense, new
securities of like tenor not bearing a Securities Act legend of the character
set forth in Section 7(a) herein.

         "SECURITIES ACT" means the Securities Act of 1933, as amended, or any
similar federal law then in force.

         "SECURITIES AND EXCHANGE COMMISSION" includes any governmental body or
agency succeeding to the functions thereof.

         "SUBSIDIARY" or "SUBSIDIARIES" means, with respect to any Person, any
corporation, limited liability company, partnership, association or other
business entity of which (i) if a corporation, a majority of the total voting
power of shares of stock entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or trustees thereof
is at the time owned or controlled, directly or indirectly, by the Person or one
or more of the other Subsidiaries of that Person or a combination thereof, or
(ii) if a limited liability company, partnership, association or other business

                                       4

<PAGE>

entity, a majority of the partnership or other similar ownership interest
thereof is at the time owned or controlled, directly or indirectly, by any
Person or one or more Subsidiaries of that Person or a combination thereof. For
purposes hereof, a Person or Persons shall be deemed to have a majority
ownership interest in a limited liability company, partnership, association or
other business entity if such Person or Persons shall be allocated a majority of
limited liability company, partnership, association or other business entity
gains or losses or shall be or control any managing director or general partner
of such limited liability company, partnership, association or other business
entity.

         "TAX" or "TAXES" means federal, state, county, local, foreign or other
income, gross receipts, ad valorem, franchise, profits, sales or use, transfer,
registration, excise, utility, environmental, communications, real or personal
property, capital stock, license, payroll, wage or other withholding,
employment, social security, severance, stamp, occupation, alternative or add-on
minimum, estimated and other taxes of any kind whatsoever (including, without
limitation, deficiencies, penalties, additions to tax, and interest attributable
thereto) whether disputed or not.

         "TAX RETURN" means any return, information report or filing with
respect to Taxes, including any schedules attached thereto and including any
amendment thereof.

         2. COLLABORATION AGREEMENT

         (a) THE PROJECT. HRL is developing a robust iris tracking algorithm
(the "ALGORITHM") and agrees to provide the Algorithm to EDI for EDI to
incorporate into EDI's already existing SafetyScope and other EDI developed
products (the "PROJECT"). The Parties agree that delivery of said Algorithm by
HRL completes its obligation under this Agreement and that HRL shall not be
required to support the incorporation of the Algorithm into EDI developed
products. EDI may, under a separate agreement, contract the technical services
of HRL to support the incorporation of the Algorithm into EDI developed
products; however, HRL, at its sole discretion, may accept or decline such
contract for technical services.

         (b) GOOD FAITH. The Parties agree to act in good faith to develop the
Project to commercial viability, and shall work cooperatively to create the
Project for the mutual benefit of both Parties as described herein.

         (c) EXPENSES. Each Party shall bear its own expenses incurred in
developing the Project and Project Intellectual Property, unless otherwise
agreed.

         (d) EXCLUSIVITY.

                  (i) During the term of this Agreement HRL and EDI agree to
         work exclusively with each other in the development of the Project.

                  (ii) EDI has not and shall not, from the date of the Letter of
         Intent through the termination of this Agreement pursuant to Section
         9(i), without the prior written consent of HRL, enter into any
         agreement, arrangement or understanding to (i) develop, license, sell,
         transfer, or assign the Project, any part, portion or component of the

                                       5

<PAGE>

         Project or the Intellectual Property relating to the Project, or enter
         into any other material agreement or understanding relating to the
         Project, or (ii) enter into any agreement with a competitor of HRL or
         HRL's Owners.

                  (iii) EDI, through its engineer Barbara Mauch, is currently
         working to develop a new and updated eyetracking algorithm which is
         completely separate and unique from the Algorithm (the "BARBARA MAUCH
         PROJECT"). Notwithstanding the terms of this Section, HRL hereby agrees
         that the Barbara Mauch Project does not violate the terms of this
         Section 2(d) or this Agreement.

                  (iv) HRL shall not, from the date of the Letter of Intent
         through the termination date of this Agreement pursuant to Section
         9(i), without the prior written consent of EDI, enter into any
         agreement, arrangement or understanding to develop technology
         substantially similar to the Project.

                  (v) Notwithstanding the foregoing, HRL is not restricted from
         conducting work in fields identical to the Project with HRL's Owners
         and their respective Affiliates, with U.S. Government customers, with
         any assigns of the foregoing, or with other customers, if so instructed
         by HRL's board of directors.

         (e) NO SOLICITATION; UNFAIR TRADE PRACTICES. The Parties anticipate
that their respective Project Participants will work closely together to execute
the Project.

                  (i) In recognition that:

                           (A) Project Participants will be privy to trade
                  secret and other confidential information of the respective
                  Party that has engaged them;

                           (B) confidential and trade secret information might
                  be either exchanged between such Project Participants under
                  confidentiality agreements or withheld from such exchange;

                           (C) if Project Participants engaged by one Party were
                  solicited to work for the other Party, trade secrets and other
                  confidential information of the Party whose Project
                  Participant is solicited will inevitably be disclosed to the
                  soliciting Party; and

                           (D) HRL's or EDI's solicitation of such Project
                  Participants may amount to an unfair trade practice.

                  (ii) HRL and EDI agree not to solicit or hire a Project
         Participant who is or was at any time after the date of this Agreement
         an employee, consultant, independent contractor or contract labor
         assignee of the other Party for the term of this Agreement and for
         three (3) years after the termination date of this Agreement pursuant
         to Section 9(i). Both HRL and EDI further agree to (i) obtain, as soon
         as possible, from all Project Participants existing before and on the
         date of this Agreement, a restrictive covenant intended to deter the
         threat of trade secret misappropriation and other unfair trade
         practices; and (ii) require each new Project Participant to sign,

                                       6

<PAGE>

         before starting work as a Project Participant, a restrictive covenant
         intended to deter the threat of trade secret misappropriation and other
         unfair trade practices. Such restrictive covenants shall be effective
         for the period of this Agreement and for three (3) years thereafter and
         shall require such Project Participant who is an employee, consultant,
         independent contractor, or contract labor assignee of one Party not to
         solicit work from the other Party. Each Party shall exchange these
         restrictive covenant agreements with the other Party before assigning
         an employee as a Project Participant.

                  (iii) HRL and EDI agree and admit that should any of them
         solicit or hire a Project Participant who is or was at any time after
         the date of this Agreement an employee, consultant, independent
         contractor or contract labor assignee of the other Party, during the
         period specified in Section 2(e)(ii) herein, it will have done so for
         the purpose of obtaining confidential or trade secret information of
         the other and such solicitation or hiring will be deemed to be an
         admission of liability that the solicitation or hiring party has
         engaged in an unfair trade practice.

                  (iv) Notwithstanding the foregoing, the Party whose Project
         Participant is solicited or hired by the other Party during the period
         specified in the foregoing Section 2(d)(ii) herein may waive its rights
         under this Section 2(e) by prior written consent, which will not be
         unreasonably withheld.

         (f) CONFIDENTIALITY.

                  (i) The Parties acknowledge and agree that (i) all
         Confidential Information disclosed under this Agreement shall be
         governed by the terms of the Proprietary Information Agreement,
         incorporated by reference and attached hereto as EXHIBIT 1 and (ii) the
         purposes for which Confidential Information may be used as provided in
         the Proprietary Information Agreement shall include the performance of
         this Agreement.

                  (ii) HRL may disclose Confidential Information to HRL's
         Owners, as well as those individuals who are employees, consultants or
         agents of HRL whom HRL determines need the Confidential Information to
         further HRL's rights and obligations under this or related Agreements.

                  (iii) The Parties agree to treat the material terms of this
         Agreement and any related agreement as Confidential Information. The
         Parties further agree that each shall not release any such information
         to any third party or media without the express written consent of the
         other Party.

                  (iv) Both Parties recognize that information relating to the
         Project Intellectual Property may need to be withheld temporarily in
         order to allow a Party to file for patent protection or for other
         proprietary or competitive reasons. Nevertheless, both Parties agree
         not to unreasonably oppose or delay their consent for such information
         release, and to make commercially reasonable efforts to expedite the
         release of information for professional publications, presentations or
         other publicity purposes, if so desired by a Party.

                                       7

<PAGE>

         (g) PERFORMANCE PARAMETERS. The Project shall have performance
parameters as defined and mutually agreed upon by the Parties as detailed in
EXHIBIT 2 attached hereto.

         3. STOCK ISSUANCE.

         (a) As consideration for HRL's research and development, and subject to
the terms and conditions of this Agreement, EDI agrees to issue and HRL agrees
to purchase, at no additional cost to HRL:

                  (i) 300,000 shares of EDI Capital Stock upon the execution of
         the Letter of Intent by the Parties;

                  (ii) 300,000 additional shares of EDI Capital Stock upon
         demonstration of the iris tracking algorithm on a high end workstation
         using test videos provided by EDI that meets the performance criteria
         given in Exhibit 2; and

                  (iii) 200,000 additional shares of EDI Capital Stock upon
         delivery of the algorithm source code developed by HRL as part of the
         Project, and associated invention disclosure to EDI.

         (b) The Parties agree that as of the Effective Date the conditions
detailed in Section 3(a)(i) or 3(a)(ii) above have been met and accordingly, EDI
hereby irrevocably and unconditionally grants such 600,000 shares of EDI Capital
Stock to HRL.

         (c) DELIVERY. As of the Effective Date, EDI shall deliver to HRL a
certificate representing the EDI Capital Stock being issued hereunder, and all
other documentation necessary to effectuate the issuance of such EDI Capital
Stock on EDI's books and records.

         (d) HRL INCENTIVES. HRL intends to transfer, distribute, assign, grant
or otherwise dispose of up to 25% of the EDI Capital Stock received pursuant to
this Agreement to HRL's Owners, employees, independent contractors and/or
consultants, whether directly or indirectly through a trust, fund or otherwise.
EDI consents to such transfer, distribution, assignment, grant or other
disposal. HRL understands and acknowledges that Rule 144 of the Securities Act
shall govern the EDI Stock.

         (e) HRL DIRECTORS. HRL shall be permitted, at its sole option, to
appoint one non-voting director to EDI's board of directors, which HRL may
select and replace in HRL's sole discretion (the "HRL DIRECTOR"). The HRL
Director shall be entitled to attend, and participate in any discussions which
shall take place during, any and all regular and special meetings of EDI's board
of directors or any committee or subcommittee thereof. The HRL Director shall
not be entitled to vote on any matters presented for approval to the EDI board
of directors or to any committee or subcommittee thereof nor shall the HRL
Director be counted for purposes of establishing a quorum. Otherwise, the HRL
Director shall have all other rights afforded to EDI directors including the
right to receive notices of meetings, and access to the books and records of
EDI. In addition, the HRL Director shall receive copies of all material
delivered to or made available to any EDI Director.

                                       8

<PAGE>

         4. INTELLECTUAL PROPERTY.

         (a) HRL INTELLECTUAL PROPERTY. The Parties agree that HRL, in its own
business, engages in research and in the creation of Intellectual Property
outside this Agreement, and that, absent an express agreement to the contrary,
HRL retains all right, title and interest in and to its Intellectual Property
throughout the universe. All such rights of HRL are irrevocable and shall vest
and remain perpetually vested in HRL whether this Agreement expires or is
terminated.

         (b) EDI INTELLECTUAL PROPERTY. Except as set forth in this Section 4,
EDI shall own, throughout the universe, all right, title and interest in and to
all Project Intellectual Property.

         (c) DISCLOSURE OF PROJECT INTELLECTUAL PROPERTY. Each Party shall cause
its Project Participants working on the Project under this Agreement or the
Proprietary Information Agreement to promptly disclose to such Party all Project
Intellectual Property conceived during the time of such participation. Each
Party shall disclose to the other Party in writing all Project Intellectual
Property within sixty (60) days of such Project Intellectual Property being
reduced to writing by such Party or its Project Participants.

         (d) INTELLECTUAL PROPERTY PROTECTION. EDI agrees that it shall be
responsible for the protection and defense of all Project Intellectual Property.
EDI will consult with HRL regularly regarding the status of Project Intellectual
Property throughout the universe, and will seek and maintain patent and
copyright registrations and trade secret protection in all countries where the
nature of the operations of the Parties and their respective Affiliates requires
such registrations and protection. EDI shall be responsible for obtaining and
maintaining such registrations, patents and other Intellectual Property
protections at its sole expense and in its own name. If HRL pays any expenses
associated with obtaining or maintaining any Intellectual Property protections,
EDI shall promptly reimburse HRL in full for said expenses. HRL may from time to
time during the term of this Agreement request that EDI seek patent and
copyright registrations and trade secret protection for any Project Intellectual
Property in any country in which such registrations and protection are available
and EDI has not initiated any such registration or protection. If EDI is unable
to or fails to seek or maintain patent or copyright protection in any country,
or intends to disclose or discloses any confidential trade secrets embodied in
Project Intellectual Property, HRL shall have the right to seek and maintain
patent and/or copyright registrations and/or trade secret protection in such
country in HRL's own name; provided that HRL shall notify EDI within a
reasonable time prior to taking any such actions in such country or incurring
any expenses with respect thereto. If HRL seeks such protections with respect to
such Project Intellectual Property, in such country, then HRL shall own such
Project Intellectual Property solely in such country, subject to EDI's license
rights therein as set forth in Section 4(f) below.

         (e) HRL LICENSE. HRL, HRL's Owners and HRL's Affiliates shall have a
fully paid-up, irrevocable, non-exclusive and perpetual license throughout the
universe to use, make, have made, import and practice all Project Intellectual
Property existing or developed pursuant to this Agreement and owned by EDI.

                                       9

<PAGE>

         (f) EDI LICENSE. When HRL owns any Project Intellectual Property in any
country pursuant to Section 4(d) herein, EDI shall have a fully paid up,
royalty-free, irrevocable, non-exclusive, perpetual, fully transferable and
sublicensable license to use, make, have made, import and practice in such
country such Project Intellectual Property.

         (g) SECTION 365(n) BANKRUPTCY PROTECTION. The parties acknowledge and
agree that the Project Intellectual Property "intellectual property" as defined
in Section 101(35A) of the United States Bankruptcy Code, as the same may be
amended from time to time (the "Code"), which has been licensed hereunder is a
contemporaneous exchange for value. The parties further acknowledge and agree
that if EDI: (i) becomes insolvent or generally fails to pay, or admits in
writing its inability to pay, its debts as they become due; (ii) applies for or
consents to the appointment of a trustee, receiver or other custodian for it, or
makes a general assignment for the benefit of its creditors; (iii) commences, or
has commenced against it, any bankruptcy, reorganization, debt arrangement, or
other case or proceeding under any bankruptcy or insolvency law, or any
dissolution or liquidation proceedings; or (iv) elects to reject, or a trustee
on behalf of it elects to reject, this Agreement or any agreement supplementary
hereto, pursuant to Section 365 of the Code ("365"), or if this Agreement or any
agreement supplementary hereto is deemed to be rejected pursuant to 365 for any
reason, this Agreement, and any agreement supplementary hereto, shall be
governed by Section 365(n) of the Code ("365(n)") and HRL, HRL's Owners and
HRL's Affiliates will retain and may elect to fully exercise its rights under
this Agreement in accordance with 365(n). Upon written request from HRL, any HRL
Owner or any HRL Affiliate to EDI or the bankruptcy trustee of EDI's, such HRL
Owner's or such HRL Affiliate's election to proceed under 365(n), EDI or such
bankruptcy trustee shall comply in all respects with 365(n), including, without
limitation, providing HRL, such HRL Owner or such HRL Affiliate with the Project
Intellectual Property and not interfering with the rights of HRL, such HRL Owner
or such HRL Affiliate as provided in this Agreement to obtain access to the
Project Intellectual Property from EDI, the bankruptcy trustee or any third
party agent.

         (h) INDEMNIFICATION. Notwithstanding the foregoing, HRL shall not be
liable, and EDI shall fully indemnify, defend and hold HRL harmless for: (a) any
and all defects or deficiencies in any Project Intellectual Property, any of
EDI's Intellectual Property or any results, inventions, data, processes,
technology or product, tangible or intangible, developed, created or owned by
HRL and/or provided to, or discussed with EDI; and for (b) any indirect,
incidental, consequential, special or punitive damages of any nature (including,
without limitation, loss of profits, use, data, or other economic advantage and
reasonable attorney's fees and expenses) in connection with or arising out of
this Agreement, including without limitation, the breach of this Agreement or
any termination of this Agreement, whether such liability is asserted on the
basis of contract, tort (including negligence or strict liability) or otherwise.

         (i) INFRINGEMENT. If any Party learns of facts that may constitute an
infringement of any of the Project Intellectual Property, it shall promptly
notify the other Party of such possible infringement. EDI shall have a duty to
conduct an investigation with respect to any such alleged infringement. EDI
shall, at its own expense, initiate appropriate action to cause any infringement
to cease, including, if necessary, initiating a lawsuit to enjoin such
infringement. HRL shall cooperate and provide assistance in the lawsuit, at
EDI's expense, as may reasonably be required. If EDI does not initiate timely

                                       10

<PAGE>

and appropriate action to cause the infringement to cease, HRL may take such
action, EDI shall permit itself to be named as a party (if necessary) and shall
cooperate and provide assistance in the lawsuit as may reasonably be required
and EDI shall fully reimburse HRL for any and all expenses HRL incurs in
connection therewith. The Parties shall make a good faith effort to coordinate
any litigation efforts, including coordination of litigation efforts and
litigation strategies, keeping the other Party informed of material events in
the course of any arbitration or litigation and, to the extent reasonably
practicable, seeking and attempting to incorporate the reasonable advice or
desires of the other Party when making decisions regarding such material events
in any arbitration or litigation.

         (j) PRODUCT COST TO HRL. To the extent that EDI produces, manufactures
or otherwise supplies any Project Product or any Project Service, EDI agrees to
produce, manufacture or otherwise supply such Project Products and Project
Services to HRL, HRL's Owners, and Affiliates, solely for internal use and not
for distribution for use by any persons other than HRL, HRL's Owners, Affiliates
or an actual employee of HRL or Affiliates, for a purchase price equal to EDI's
direct cost of producing such Project Products or Project Service. EDI shall not
be required to produce, manufacture or otherwise supply such Project Products
and Project Services to HRL insofar as HRL intends to resell the Project
Products and Project Services to a third party. To the extent EDI enters into an
arrangement with a third party for the production, manufacture, supply or other
distribution of any Project Product and Project Service, EDI agrees to obtain an
agreement with such third party whereby HRL and its Affiliates can purchase such
Project Product and Project Service, solely for internal use and not for
distribution for use by any persons other than HRL, HRL's Owners, Affiliates or
an actual employee of HRL or its Affiliates, at the same purchase price as EDI
can purchase such Project Products or Project Services.

         5. REPRESENTATIONS AND WARRANTIES OF EDI. As a material inducement to
HRL to enter into this Agreement and to accept EDI Capital Stock as
consideration for performance hereunder, EDI hereby represents and warrants,
except as set forth on a Disclosure Schedule attached hereto, which exception
shall be deemed to be representations and warranties as if made hereunder, each
of the representations and warranties set forth on Exhibit 5 attached hereto.

         6. HRL REPRESENTATIONS AND WARRANTIES. HRL hereby represents and
warrants each of the representations and warranties set forth on Exhibit 6
attached hereto.

         7. RESTRICTED SECURITIES.

         (a) Each certificate or instrument representing Restricted Securities
shall be imprinted with a legend in substantially the following Form:

                  "The shares represented by this certificate have not been
                  registered under the Securities Act of 1933, as amended, or
                  applicable state laws. These securities have been acquired for
                  investment and not with a view to distribution or resale, and
                  may not be sold, mortgaged, pledged, hypothecated or otherwise
                  transferred without an effective registration statement for
                  such securities under the Securities Act of 1933, and any
                  applicable state securities laws, unless the corporation has
                  received an opinion of counsel, which opinion is satisfactory
                  to the corporation, to the effect that such registrations are
                  not required."

                                       11

<PAGE>

         (b) OPINION DELIVERY. In connection with the transfer of any Restricted
Securities, the holder thereof shall deliver written notice to EDI describing in
reasonable detail the transfer or proposed transfer, together with an opinion of
legal counsel which is knowledgeable in securities law matters to the effect
that such transfer of Restricted Securities may be effected without registration
of such Restricted Securities under the Securities Act. In addition, if the
holder of the Restricted Securities delivers to EDI an opinion of legal counsel
that no subsequent transfer of such Restricted Securities shall require
registration under the Securities Act, and EDI's legal counsel has reviewed such
opinion and reasonably concurs with the assessments made therein, EDI shall
promptly upon such contemplated transfer deliver new certificates for such
Restricted Securities which do not bear the Securities Act legend set forth in
Section 7(a). If EDI is not required to deliver new certificates for such
Restricted Securities not bearing such legend, HRL shall not transfer the same
until the prospective transferee has confirmed to EDI in writing its agreement
to be bound by the conditions contained in this Section 7.

         (c) RULE 144A. Upon the request of HRL, EDI shall promptly supply to
HRL or its prospective transferees all information regarding EDI required to be
delivered in connection with a transfer pursuant to Rule 144A of the Securities
and Exchange Commission.

         (d) LEGEND REMOVAL. If any Restricted Securities become eligible for
sale pursuant to Rule 144(k), EDI shall, upon the request of the holder of such
Restricted Securities, remove the legend set forth in Section 7(a) from the
certificates for such Restricted Securities.

         (e) REMEDIES. HRL shall have all rights and remedies set forth in this
Agreement, the Certificate of Incorporation and all rights and remedies which
such holders have been granted at any time under any other agreement or contract
and all of the rights which such holders have under any law. Any person having
any rights under any provision of this Agreement shall be entitled to enforce
such rights specifically (through posting a bond or other security), to recover
damages by reason of any breach of any provision of this Agreement and to
exercise all other rights granted by law.

         (f) ADJUSTMENT. In the event of a reorganization, recapitalization,
stock dividend or stock split, or combination or other change in the shares of
EDI Capital Stock, EDI shall, in order to prevent the dilution of rights under
HRL's holdings of EDI Capital Stock, make such adjustments in the number and
type of shares authorized and the number of shares held by HRL or to be granted
to HRL pursuant to this Agreement so that HRL's holdings of EDI Capital Stock
shall not be diluted or adversely affected.

         8. CONDITIONS.

         (a) CONDITIONS OF HRL OBLIGATIONS. The obligations of HRL to EDI under
this Agreement are subject to the fulfillment, on or before the Effective Date,
of each of the following conditions, unless otherwise waived:

                                       12

<PAGE>

                  (i) REPRESENTATIONS AND WARRANTIES. The representations and
         warranties of EDI contained in Section 5 shall be true and correct in
         all material respects on and as of the Effective Date with the same
         effect as though such representations and warranties had been made on
         and as of the Effective Date.

                  (ii) PERFORMANCE. EDI shall have performed and complied with
         all covenants, agreements, obligations and conditions contained in this
         Agreement that are required to be performed or complied with by it on
         or before the Effective Date.

                  (iii) COMPLIANCE CERTIFICATE. The Chief Executive Officer of
         EDI shall deliver as of the Effective Date to HRL a certificate
         certifying that the conditions specified in Section (i) and (ii) have
         been fulfilled.

                  (iv) QUALIFICATIONS. All authorizations, approvals or permits,
         if any, of any governmental authority or regulatory body of the United
         States or of any state that are required in connection with the lawful
         issuance and sale of the EDI Capital Stock pursuant to this Agreement
         shall be obtained and effective as of the Effective Date.

                  (v) OPINION OF EDI COUNSEL. HRL shall have received from
         Anker, Reed, Hymes & Schreiber, counsel for EDI, an opinion, dated as
         of the Effective Date, in substantially the form of EXHIBIT 3.

                  (vi) BOARD OF DIRECTORS. As of the Effective Date, EDI's board
         of directors shall include the HRL Director.

                  (vii) CONFIDENTIAL INFORMATION AND INVENTION ASSIGNMENT
         AGREEMENT. The Project Participants shall each have entered into a form
         of Confidential Information and Invention Assignment Agreement, to
         defer trade secret misappropriation as agreed in Section 3.3(b)
         hereunder, which has been approved by HRL.

         (b) CONDITIONS OF EDI OBLIGATIONS. The obligations of EDI to HRL under
this Agreement are subject to the fulfillment, on or before the Effective Date,
of each of the following conditions, unless otherwise waived:

                  (i) REPRESENTATIONS AND WARRANTIES. The representations and
         warranties of HRL contained in Section 6 shall be true and correct in
         all material respects on and as of the Effective Date with the same
         effect as though such representations and warranties had been made on
         and as of the Effective Date.

                  (ii) PERFORMANCE. HRL shall have performed and complied with
         all covenants, agreements, obligations and conditions contained in this
         Agreement that are required to be performed or complied with by it on
         or before the Effective Date.

                  (iii) COMPLIANCE CERTIFICATE. The Chief Executive Officer of
         HRL shall deliver as of the Effective Date to EDI a certificate
         certifying that the conditions specified in Section (i) and (ii) have
         been fulfilled.

                  (iv) QUALIFICATIONS. All authorizations, approvals or permits,
         if any, of any governmental authority or regulatory body of the United
         States or of any state that are required in connection with the lawful
         issuance and sale of the EDI Capital Stock pursuant to this Agreement
         shall be obtained and effective as of the Effective Date.

                                       13

<PAGE>

                  (v) CONFIDENTIAL INFORMATION AND INVENTION ASSIGNMENT
         AGREEMENT. The Project Participants shall each have entered into a form
         of Confidential Information and Invention Assignment Agreement, to
         defer trade secret misappropriation as agreed in Section 2(e) herein,
         which has been approved by EDI.

         9. MISCELLANEOUS.

         (a) NOTICES. The Parties agree to designate a single point of contact
for both administrative and technical coordination to facilitate the
collaboration, with each Party free to substitute its respective point of
contact at its discretion, provided notice of such change is given to the other
Party. The persons initially so designated are:

                 ADMINISTRATIVE                         TECHNICAL
                 --------------                         ---------
HRL:        HRL Laboratories, LLC                HRL Laboratories, LLC
            Attn: L.W. Jones III                 Attn: Dr. Mark A. Stalzer, RL96
            RL85                                 3011 Malibu Canyon Road
            3011 Malibu Canyon Road              Malibu, CA 90265
            Malibu, CA 90265
                                                 Tel. (310) 317-5581
            Tel. (310) 317-5851                  Fax. (310) 317-5695
            Fax. (310) 317-5861

WITH A      HRL Laboratories, LLC                HRL Laboratories, LLC
COPY TO:    Attn: D.R. Allemeier                 Attn: D.R. Allemeier
            RL85                                 RL85
            3011 Malibu Canyon Road              3011 Malibu Canyon Road
            Malibu, CA 90265                     Malibu, CA 90265

            Tel. (310) 317-5851                  Tel. (310) 317-5851
            Fax. (310) 317-5861                  Fax. (310) 317-5861

EDI:        Eye Dynamics Inc.                    Eye Dynamics Inc.
            Attn:  Ronald Waldorf                Attn:  Ronald Waldorf
            2301 West 205th Street               2301 West 205th Street
            Suite 106                            Suite 106
            Torrance, CA 90501                   Torrance, CA 90501

            Tel.                                 Tel.
            Fax.                                 Fax.

                                       14

<PAGE>

WITH A      Anker, Reed, Hymes & Schreiber       Anker, Reed, Hymes & Schreiber
COPY TO:    Attn:  Robert A. Cohen               Attn:  Robert A. Cohen
            21333 Oxnard Street                  21333 Oxnard Street
            Woodland Hills, CA  91367            Woodland Hills, CA  91367

            Tel. (818) 501-5800                  Tel. (818) 501-5800
            Fax. (818) 501-4819                  Fax. (818) 501-4819

         (b) SEVERABILITY. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be valid and effective under
applicable law, but if any provision of this Agreement or the application of any
such provision to any person or circumstance shall be held invalid, illegal or
unenforceable in any respect by a court of competent jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other provision
hereof.

         (c) SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All representations and
warranties contained herein or made in writing by EDI or HRL in connection with
this Agreement shall survive the execution and delivery of this Agreement and
the consummation of the transactions contemplated hereby regardless of any
diligence conducted by HRL or on its behalf.

         (d) INDEMNITIES. EDI agrees to indemnify and hold harmless HRL from and
against all losses, damages, liabilities and expenses (including without
limitation reasonable attorneys fees and expenses) resulting from any breach of
any representation, warranty or agreement of EDI or any misrepresentation by EDI
in this Agreement.

         (e) GOVERNING LAW; JURISDICTION. This Agreement shall be governed by
and construed in accordance with the internal laws of the State of California
applicable to agreements made and to be performed entirely within the State of
California, without regard to the conflict of laws principles of such state. The
venue for any judicial, administrative or arbitration proceeding related to this
agreement shall be in Los Angeles County.

         (f) EXHIBITS. All Exhibits annexed hereto or referred herein are hereby
incorporated in and made a part of this Agreement as if set forth in full
herein.

         (g) ENTIRE AGREEMENT PRECEDENT. This Agreement, the Exhibits attached
hereto, and the Registration Rights Agreement contain the entire agreement and
understanding between the parties hereto with respect to the subject matter
hereof and supersede all prior agreements and understandings (excluding the
Proprietary Information Agreement attached hereto as Exhibit 1), whether written
or oral, relating to such subject matter. In the event that a conflict appears
between this Agreement, the Registration Rights Agreement or the Proprietary
Information Agreement, this Agreement shall take precedence.

         (h) HEIRS, SUCCESSORS AND ASSIGNS; ASSIGNMENT. Each and all of the
covenants, terms, provisions and agreements herein contained shall be binding
upon and inure for the benefit of the Parties hereto and to the extent permitted
by this Agreement, their respective heirs, legal representatives, successors and
assigns. This Agreement and any rights and obligations hereunder shall not be
assignable or transferable by either Party without the prior written consent of
the other Party and any purported assignment without such consent shall be void
and without effect.

                                       15

<PAGE>

                  (i) TERMINATION; EFFECT OF TERMINATION.

                           (i) This Agreement may be terminated as follows:

                                    (A) by any Party at any time, upon sixty
                           (60) days' written notice to the other Party of any
                           material breach of this Agreement by the other Party
                           which remains uncured after the sixty (60) day period
                           of notice; or

                                    (B) by any Party immediately upon written
                           notice to the other Party if the other Party
                           voluntarily commences bankruptcy, insolvency, or
                           reorganization proceedings, is adjudicated a
                           bankrupt, is declared insolvent, or enters into a
                           composition agreement with its creditors, or if a
                           receiver is appointed for it or a substantial portion
                           of its properties.

                           (ii) The term and termination of any other related
                  agreement (including the Proprietary Information Agreement)
                  shall not be affected by the termination of this Agreement.

                           (iii) EFFECT OF TERMINATION.

                                    (A) Termination of this Agreement shall not
                           relieve or release either Party from its obligation
                           to make any payments owing hereunder as of the
                           effective date of termination, or from any other
                           liability that either Party may have to the other
                           arising out of this Agreement or any breach of this
                           Agreement.

                                    (B) Any provisions of this Agreement, which
                           are intended by their specific terms or by necessary
                           implication to survive the expiration or termination
                           of this Agreement shall so survive. Without limiting
                           any of the foregoing and notwithstanding anything
                           contained herein to the contrary, Sections 2(e),
                           2(f), 3(a), 3(b), 4, 5 (and Exhibit 5), 6 (and
                           Exhibit 6), 7 and 9 shall survive the termination of
                           this Agreement.

         (j) EXPORT. Information disclosed or developed hereunder may be subject
to the laws and regulations of the United States pertaining to export control
and therefore both Parties agree to comply with all the requirements of these
laws and regulations of the United States, including International Traffic in
Arms Regulations ("ITAR") and the Export Administration Regulations ("EAR").

         (k) WAIVERS AND AMENDMENTS. This Agreement may be amended, modified,
superseded, cancelled, renewed, or extended, and the terms and conditions hereof
may be waived, only by written instrument signed by an authorized officer of HRL
and an authorized officer of EDI; no delay on the part of any party exercising
any right, power or privilege hereunder shall operate as a waiver thereof, nor
shall any waiver on the part of any Party of any right, power, or privilege
hereunder, nor any single or partial exercise of any right, power or privilege
hereunder, preclude any other or further exercise thereof or the exercise of any
other right, power or privilege hereunder.

                                       16

<PAGE>

         (l) CONSTRUCTION. Whenever the singular number is used in this
Agreement and when required by the contract, the same shall include the plural,
and the masculine gender shall include the feminine and neutral genders and vice
versa. This Agreement is prepared and executed in the English language only and
any translation of this Agreement into any other language shall have no effect.

         (m) HEADINGS. The headings in this Agreement are inserted for
convenience only and are in no way intended to describe, interpret, define, or
limit the scope, extent or intent of this Agreement or any provision hereof.

         (n) NO THIRD PARTY BENEFICIARIES. It is understood and agreed among the
parties that this Agreement and the covenants made herein are made expressly and
solely for the benefit of the Parties hereto, and that no other person except
for HRL's owners shall be entitled or be deemed to be entitled to any benefits
or rights hereunder, nor be authorized or entitled to enforce any rights, claims
or remedies hereunder or by reason hereof.

         (o) COUNTERPARTS. This Agreement may be executed in one or more
counterparts (including by means of photocopied or facsimile signature pages),
all of which shall be considered one and the same agreement, and shall become
effective when one or more such counterparts have been signed by each of the
parties and delivered to the other party.

                                    * * * * *
                  [remainder of page intentionally left blank]

                                       17

<PAGE>

         IN WITNESS WHEREOF, HRL and EDI have caused this Technology Development
Agreement to be duly executed as of the date set forth in the Preamble hereto by
their authorized representatives as indicated below.

HRL LABORATORIES, LLC                      EYE DYNAMICS INC.

By: /S/ ARTHUR N. CHESTER                  By: /S/ RONALD WALDORF
    ------------------------------             --------------------------------
    Arthur N. Chester                          Ronald Waldorf
    President                                  Chairman

                                      S-1

<PAGE>

                                    EXHIBIT 1

                        PROPRIETARY INFORMATION AGREEMENT
                                    [ATTACH]

                                      1-1

<PAGE>

                                    EXHIBIT 2

                         PROJECT PERFORMANCE PARAMETERS

         As part of the Project, HRL shall develop an iris tracking algorithm
winch shall perform as follows:

         1. Under optimal conditions when there is no makeup present and the
eyelid droop is less than 10%, the algorithm will compute the pupil centroid
position at 99% accuracy, where the X (horizontal) position is accurate with =/-
1 pixel, and the Y (vertical) position is accurate within +/- 1 line. The
accuracy of the diameter calculation is 95%-99% of the actual size.

         2. Under conditions when significant eye makeup is present the
algorithm will achieve 80%-99% accuracy in computing the pupil centroid. The
accuracy of the diameter calculation is 95%-99% of the actual size.

         3. Under conditions where eyelid droop occurs, the following minimum
accuracies are required:

            (a) 10% obscured = 99% (centroid position), 95%-99% (diameter)

            (b) 25% obscured = 99% (centroid position), 90%-95% (diameter)

            (c) 50% obscured = 99%-85% (centroid position), 90%-80% (diameter)

            (d) 50% obscured = 85%-60% (centroid position), 50%-80% (diameter)

                                      2-1

<PAGE>

                                    EXHIBIT 3

                         FORM OF OPINION OF EDI COUNSEL
                                   [ATTACHED]

                                      3-1

<PAGE>

                                    EXHIBIT 4

                          REGISTRATION RIGHTS AGREEMENT
                                   [ATTACHED]

                                      4-1

<PAGE>

                                    EXHIBIT 5

                      REPRESENTATIONS AND WARRANTIES OF EDI

         (a) ORGANIZATION, CORPORATE POWER AND LICENSES. EDI is a corporation
duly organized, validly existing and in good standing under the laws of Nevada
and is qualified to do business in every jurisdiction in which its ownership of
property or conduct of business requires it to qualify. EDI possesses all
requisite corporate power and authority and all material licenses, permits and
authorizations necessary to own and operate its properties, to carry on its
businesses as now conducted and presently proposed to be conducted and to carry
out the transactions contemplated by this Agreement. The copies of EDI's and its
Subsidiary's charter documents and bylaws which have been filed with the
Securities and Exchange Commission as of the date of this Agreement reflect all
amendments made thereto at any time prior to the date of this Agreement and are
correct and complete.

         (b) CAPITAL STOCK AND RELATED MATTERS.

                  (i) As of the Effective Date and immediately thereafter, the
authorized capital stock of EDI consists solely of 50,000,000 shares of common
stock, par value $0.01 (the "EDI CAPITAL STOCK"), of which 15,150,313 shares,
which includes 800,000 shares to be issued pursuant to this Agreement, shall be
issued and outstanding. As of the Effective Date, neither EDI nor its Subsidiary
has outstanding any stock or securities convertible or exchangeable for any
shares of its capital stock or containing any profit participation features, nor
shall it have outstanding any rights or options to subscribe for or to purchase
its capital stock or any stock or securities convertible into or exchangeable
for its capital stock or any stock appreciation rights or phantom stock plans.
As of the Effective Date, neither EDI nor its Subsidiary is subject to any
obligation (contingent or otherwise) to repurchase or otherwise acquire or
retire any shares of its capital stock or any warrants, options or other rights
to acquire its capital stock. As of the Effective Date, all of the outstanding
shares of EDI Capital Stock are validly issued, fully paid and nonassessable.

                  (ii) There are no statutory or, to the best of EDI's
knowledge, contractual stockholders preemptive rights or rights of refusal with
respect to the issuance of EDI's Capital Stock hereunder. EDI has not violated
any applicable federal or state securities laws in connection with the offer,
sale or issuance of any of its capital stock, and the offer, sale and issuance
of the EDI's Capital Stock hereunder do not require registration under the
Securities Act or any applicable state securities laws. To the best of EDI's
knowledge, there are no agreements between EDI's stockholders with respect to
the voting or transfer of EDI's capital stock or with respect to any other
aspect of EDI's affairs.

         (c) SUBSIDIARIES; INVESTMENTS. EDI does not own or hold any rights to
acquire any shares of stock or any other security or interest in any other
Person, and EDI has never had any Subsidiary, except for Oculokinetics, Inc.
which does not have and has not had operations, assets or liabilities except for
a tax loss carry forward.

                                      5-1

<PAGE>

         (d) AUTHORIZATION; NO BREACH. The execution, delivery and performance
of this Agreement, the Proprietary Information Agreement, the Registration
Rights Agreement and all other agreements contemplated hereby to which EDI is a
party have been duly authorized by EDI. Each of this Agreement, the Registration
Rights Agreement, the Proprietary Information Agreement and all other agreements
contemplated hereby to which EDI is a party constitutes a valid and binding
obligation of EDI, enforceable in accordance with its terms. The execution and
delivery by EDI of this Agreement, the Registration Rights Agreement, the
Proprietary Information Agreement and all other agreements contemplated hereby
to which EDI is a party, the offering, sale and issuance of EDI's Capital Stock
hereunder, and the fulfillment of and compliance with the respective terms
hereof and thereof by EDI, do not and shall not (i) conflict with or result in a
breach of the terms, conditions or provisions of, (ii) constitute a default
under, (iii) result in the creation of any lien, security interest, charge or
encumbrance upon EDI's or any Subsidiary's capital stock or assets pursuant to,
(iv) give any third party the right to modify, terminate or accelerate any
obligation under, (v) result in a violation of, or (vi) require any
authorization, consent, approval, exemption or other action by or notice or
declaration to, or filing with, any court or administrative or governmental body
or agency pursuant to the charter or bylaws of EDI or its Subsidiary, or any
law, statute, rule or regulation to which EDI or its Subsidiary is subject, or
any agreement, instrument, order, judgment or decree to which EDI or its
Subsidiary is subject.

         (e) FINANCIAL STATEMENTS. The following financial statements have been
filed with the Securities and Exchange Commission and are available on the
government information database "EDGAR."

                           (i) the 10-KSB, which includes audited consolidated
balance sheets of EDI and its Subsidiaries as of December 31, 1998, December 31,
1999, December 31, 2000, and December 31, 2001, and the related statements of
income and cash flows (or the equivalent) for the respective twelve-month
periods then ended; and

                           (ii) the 10-ASB, which includes the unaudited
consolidated balance sheet of EDI and its Subsidiary as of March 31, 2002 (the
"LATEST BALANCE SHEET"), and the related statements of income and cash flows (or
the equivalent) for the three-month period then ended.

Each of the foregoing financial statements (including in all cases the notes
thereto, if any) is accurate and complete in all material respects, is
consistent with the books and records of EDI (which, in turn, are accurate and
complete in all material respects) and has been prepared in accordance with
generally accepted accounting principles, consistently applied.

         (f) ABSENCE OF UNDISCLOSED LIABILITIES. EDI and its Subsidiary do not
have any material obligation or liability (whether accrued, absolute,
contingent, unliquidated or otherwise, whether or not known to EDI or its
Subsidiary, whether due or to become due and regardless of when asserted)
arising out of transactions entered into at or prior to the Effective Date, or
any action or inaction at or prior to the Effective Date, or any state of facts
existing at or prior to the Effective Date other than: (i) liabilities set forth
on the Latest Balance Sheet (including any notes thereto), (ii) liabilities and
obligations which have arisen after the date of the Latest Balance Sheet in the
ordinary course of business (none of which is a liability resulting from breach
of contract, breach of warranty, tort, infringement, claim or lawsuit) and (iii)
other liabilities and obligations expressly disclosed in this Agreement.

                                      5-2

<PAGE>

         (g) NO MATERIAL ADVERSE CHANGE. Since the date of the Latest Balance
Sheet, there has been no material adverse change in the financial condition,
operating results, assets, operations, business prospects, employee relations or
customer or supplier relations of EDI and its Subsidiary taken as a whole.

         (h) Neither EDI nor its Subsidiary has at any time made any payments
for political contributions or made any bribes, kickback payments or other
illegal payments.

         (i) ASSETS. EDI and its Subsidiary have good and marketable title to,
or a valid leasehold interest in, the material properties and assets used by
them, located on their premises or shown on the Latest Balance Sheet or acquired
thereafter, free and clear of all Liens, except for properties and assets
disposed of in the ordinary course of business since the date of the Latest
Balance Sheet and except for Liens disclosed on the Latest Balance Sheet
(including any notes thereto) and Liens for current property taxes not yet due
and payable. EDI's and its Subsidiary's buildings, equipment and other tangible
assets are in good operating condition in all material respects and are fit for
use in the ordinary course of business. EDI and its Subsidiary own, or have a
valid leasehold interest in, all assets necessary for the conduct of their
respective businesses as presently conducted and as presently proposed to be
conducted.

         (j) TAX MATTERS.

                  (i) EDI and its Subsidiary have filed all Tax Returns which
they are required to file under applicable laws and regulations; all such Tax
Returns are complete and correct in all material respects and have been prepared
in compliance with all applicable laws and regulations in all material respects;
EDI and its Subsidiary in all material respects have paid all Taxes due and
owing by them (whether or not such Taxes are required to be shown on a Tax
Return) and have withheld and paid over to the appropriate taxing authority all
Taxes which they are required to withhold from amounts paid or owing to any
employee, stockholder, creditor or other third party; neither EDI nor its
Subsidiary has waived any statute of limitations with respect to any Taxes or
agreed to any extension of time with respect to any Tax assessment or
deficiency; the accrual for Taxes on the Latest Balance Sheet would be adequate
to pay all Tax liabilities of EDI and its Subsidiary if their current tax year
were treated as ending on the date of the Latest Balance Sheet (excluding any
amount recorded which is attributable solely to timing differences between book
and Tax income); since the date of the Latest Balance Sheet, EDI and its
Subsidiary have not incurred any liability for Taxes other than in the ordinary
course of business; the assessment of any additional Taxes for periods for which
Tax Returns have been filed by EDI and its Subsidiary shall not exceed the
recorded liability therefor on the Latest Balance Sheet (excluding any amount
recorded which is attributable solely to timing differences between book and Tax
income); the federal income Tax Returns of EDI and its Subsidiary have been
audited and closed for all tax years through 2001; no foreign, federal, state or
local tax audits or administrative or judicial proceedings are pending or being
conducted with respect to EDI and its Subsidiary, no information related to Tax
matters has been requested by any foreign, federal, state or local taxing
authority and no written notice indicating an intent to open an audit or other
review has been received by EDI from any foreign, federal, state or local taxing
authority; and there are no material unresolved questions or claims concerning
EDI's or its Subsidiary's Tax liability.

                                      5-3

<PAGE>

                  (ii) Neither EDI nor its Subsidiary has made an election under
ss.341(f) of the InternaL Revenue Code of 1986, as amended. Neither EDI nor its
Subsidiary is a party to any tax sharing agreement. EDI and its Subsidiary have
disclosed on their federal income Tax Returns any position taken for which
substantial authority (within the meaning of IRC ss.6662(d)(2)(B)(i)) did not
exist at the time the return was filed. EDI haS not made any payments, is not
obligated to make payments or is a party to an agreement that could obligate it
to make any payments that would not be deductible under IRC ss.280G.

         (k) CONTRACTS AND COMMITMENTS.

                  (i) All of the contracts, agreements and instruments to which
EDI is subject are valid, binding and enforceable in accordance with their
respective terms. EDI and its Subsidiary have performed all obligations required
to be performed by them and are not in default under or in breach of nor in
receipt of any claim of default or breach under any contract, agreement or
instrument to which EDI or its Subsidiary is subject; no event has occurred
which with the passage of time or the giving of notice or both would result in a
default, breach or event of noncompliance by EDI or its Subsidiary under any
contract, agreement or instrument to which EDI or its Subsidiary is subject;
neither EDI nor its Subsidiary has any present expectation or intention of not
fully performing all such obligations; neither EDI nor its Subsidiary has
knowledge of any breach or anticipated breach by the other parties to any
contract, agreement, instrument or commitment to which it is a party; and
neither EDI nor its Subsidiary is a party, except for the Settlement Agreement
with TESA Corporation, which has been previously disclosed to HRL and is also
disclosed in the notes to all financial statements filed with the Securities and
Exchange Commission.

                  (ii) EDI has filed with the Securities and Exchange Commission
a true and correct copy of each of the material written instruments, plans,
contracts and agreements to which EDI or its Subsidiary are subject, together
with all amendments, waivers or other changes thereto in compliance with the
requirements of the Securities Act.

         (l) INTELLECTUAL PROPERTY RIGHTS.

                  (i) "SCHEDULE 6" attached hereto contains a complete and
accurate list of all (i) patented or registered Intellectual Property rights
owned or used by EDI or its Subsidiary, (ii) pending patent applications and
applications for registrations of other Intellectual Property Rights filed by
EDI or its Subsidiary, (iii) unregistered trade names and corporate names owned
or used by EDI or its Subsidiary and (iv) unregistered trademarks, service
marks, copyrights, mask works and computer software owned or used by EDI or its
Subsidiary. EDI has filed with the Securities and Exchange Commission all
material agreements governing licenses and other rights granted by EDI or its
Subsidiary to any third party with respect to any Intellectual Property Rights
and all licenses and other rights granted by any third party to EDI or its
Subsidiary with respect to any Intellectual Property Rights. EDI or its
Subsidiary owns all right, title and interest to, or has the right to use
pursuant to a valid license, all Intellectual Property Rights necessary for the

                                      5-4

<PAGE>

operation of the businesses of EDI and its Subsidiary as presently conducted and
as presently proposed to be conducted, free and clear of all Liens. The loss or
expiration of any Intellectual Property Right or related group of Intellectual
Property Rights owned or used by EDI or its Subsidiary has not had and would not
reasonably be expected to have a material adverse effect on the conduct of EDI's
and its Subsidiary' respective businesses, and no such loss or expiration is
threatened, pending or reasonably foreseeable. EDI and its Subsidiary have taken
all necessary and desirable actions to maintain and protect the Intellectual
Property Rights which they own. To the best of EDI's knowledge, the owners of
any Intellectual Property Rights licensed to EDI or its Subsidiary have taken
all necessary and desirable actions to maintain and protect the Intellectual
Property Rights which are subject to such licenses.

                  (ii) Except as set forth on the Intellectual Property
Schedule, (i) EDI and its Subsidiary own all right, title and interest in and to
all of the Intellectual Property Rights listed on such schedule , free and clear
of all Liens, (ii) there have been no claims made against EDI or its Subsidiary
asserting the invalidity, misuse or unenforceability of any of such Intellectual
Property Rights, and there are no grounds for the same, (ii) neither EDI nor its
Subsidiary has received any notices of, and is not aware of any facts which
indicate a likelihood of, any infringement or misappropriation by, or conflict
with, any third party with respect to such Intellectual Property Rights
(including, without limitation, any demand or request that EDI or its Subsidiary
license any rights from a third party), (iv) the conduct of EDI's and its
Subsidiary's business has not infringed, misappropriated or conflicted with and
does not infringe, misappropriate or conflict with any Intellectual Property
Rights of other Persons, nor would any future conduct as presently contemplated
infringe, misappropriate or conflict with any Intellectual Property Rights of
other Persons and (v) to the best of EDI's knowledge, the Intellectual Property
Rights owned by or licensed to EDI or its Subsidiary have not been infringed,
misappropriated or conflicted by other Persons. The transactions contemplated by
this Agreement shall have no material adverse effect on EDI's or its
Subsidiary's right, title and interest in and to the Intellectual Property
Rights listed on the Intellectual Property Schedule.

         (m) LITIGATION, ETC. There are no actions, suits, proceedings, orders,
investigations or claims pending or, to the best of EDI's knowledge, threatened
against or affecting EDI or its Subsidiary (or to the best of EDI's knowledge,
pending or threatened against or affecting any of the officers, directors or
employees of EDI and its Subsidiary with respect to their businesses or proposed
business activities), or pending or threatened by EDI or its Subsidiary against
any third party, at law or in equity, or before or by any governmental
department, commission, board, bureau, agency or instrumentality (including,
without limitation, any actions, suit, proceedings or investigations with
respect to the transactions contemplated by this Agreement); nor have there been
any such actions, suits, proceedings, orders, investigations or claims pending
against or affecting EDI or its Subsidiary during the past 5 years; neither EDI
nor its Subsidiary is subject to any arbitration proceedings under collective
bargaining agreements or otherwise or, to the best of EDI's knowledge, any
governmental investigations or inquiries (including, without limitation,
inquiries as to the qualification to hold or receive any license or permit);
and, to the best of EDI's knowledge, there is no basis for any of the foregoing.
Neither EDI nor its Subsidiary is subject to any judgment, order or decree of
any court or other governmental agency, and neither EDI nor its Subsidiary has
received any opinion or memorandum or legal advice from legal counsel to the
effect that it is exposed, from a legal standpoint, to any liability or
disadvantage which may be material to its business.

         (n) BROKERAGE. There are no claims for brokerage commissions, finders'
fees or similar compensation in connection with the transactions contemplated by
this Agreement based on any arrangement or agreement binding upon EDI or its
Subsidiary. EDI shall pay, and hold HRL harmless against, any liability, loss or
expense (including, without limitation, reasonable attorneys' fees and
out-of-pocket expenses) arising in connection with any such claim.

                                      5-5

<PAGE>

         (o) GOVERNMENTAL CONSENT, ETC. No permit, consent, approval or
authorization of, or declaration to or filing with, any governmental authority
is required in connection with the execution, delivery and performance by EDI of
this Agreement or the other agreements contemplated hereby, or the consummation
by EDI of any other transactions contemplated hereby or thereby, except as
expressly contemplated herein or in the exhibits hereto.

         (p) INSURANCE. EDI maintains insurance policies with respect to its
properties, assets and businesses, and each such policy is in full force and
effect as of the Effective Date. EDI is not in default with respect to its
obligations under any insurance policy maintained by it, and EDI has not been
denied insurance coverage. The insurance coverage of EDI is customary for
corporations of similar size engaged in similar lines of business. EDI does not
have any self-insurance or co-insurance programs. In that EDI's only subsidiary
is not operating, it does not maintain separate liability insurance, but is
named on EDI's liability insurance policies.

         (q) EMPLOYEES. EDI is not aware that any executive or key employee of
EDI or its Subsidiary or any group of employees of EDI or its Subsidiary has any
plans to terminate employment with EDI or its Subsidiary. EDI and its Subsidiary
have complied in all material respects with all laws relating to the employment
of labor (including, without limitation, provisions thereof relating to wages,
hours, equal opportunity, collective bargaining and the payment of social
security and other taxes). Neither EDI, its Subsidiary nor, to the best of EDI's
knowledge after due inquiry, any of their employees is subject to any
noncompete, nondisclosure, confidentiality, employment, consulting or similar
agreements relating to, affecting or in conflict with the present or proposed
business activities of EDI and its Subsidiary, except for agreements between EDI
and its present and former employees.

         (r) ERISA. Neither EDI nor its Subsidiary has or has ever had an
employee benefit plan, as that term is used in Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA").

         (s) ENVIRONMENTAL AND SAFETY MATTERS. EDI has complied and is in
compliance with, and any real property and all improvements thereof owned or
leased by EDI is in compliance with, all Environmental Laws. No notice,
citations, summons or order has been received by EDI, no notice has been given
by EDI and no complaint has been filed, no penalty has been assessed and no
investigation or review is pending or to the knowledge of EDI threatened by any
governmental entity, with respect to (i) any alleged violation by EDI of any
Environmental Law; or (ii) any alleged failure by EDI to have any environmental
permit, certificate, license, approval, registration or authorization required
in connection with its business or properties.

         (t) AFFILIATED TRANSACTIONS. No officer, director, employee,
stockholder or Affiliate of EDI or its Subsidiary or any individual related by
blood, marriage or adoption to any such individual or any entity in which any
such Person or individual owns any beneficial interest, is a party to any
agreement, contract, commitment or transaction with EDI or its Subsidiary or has
any material interest in any material property used by EDI or its Subsidiary.

                                      5-6

<PAGE>

         (u) DISCLOSURE. Neither this Agreement, the Proprietary Information
Agreement, the Disclosure Schedules, the Registration Rights Agreement nor any
of the exhibits, schedules, attachments, written statements, documents,
certificates or other items prepared or supplied to HRL by or on behalf of EDI
with respect to the transactions contemplated hereby contain any untrue
statement of a material fact or omit a material fact necessary to make each
statement contained herein or therein not misleading. There is no fact which EDI
has not disclosed to HRL in writing and of which any of its officers, directors
or executive employees is aware and which has had or would reasonably be
expected to have a material adverse effect upon the existing or expected
financial condition, operating results, assets, customer or supplier relations,
employee relations or business prospects of EDI and its Subsidiary taken as a
whole.

         (v) EFFECTIVE DATE. The representations and warranties of EDI contained
in this Section 5 and elsewhere in this Agreement and all information contained
in any exhibit, schedule or attachment hereto or in any certificate or other
writing delivered by, or on behalf of, EDI to HRL shall be true and correct in
all material respects on the date of the Effective Date as though then made,
except as affected by the transactions expressly contemplated by this Agreement.

                                      5-7

<PAGE>

                                    EXHIBIT 6

                      REPRESENTATIONS AND WARRANTIES OF HRL

         (a) ORGANIZATION OF THE BUYER. HRL is a limited liability company duly
organized, validly existing and in good standing under the laws of Delaware.

         (b) AUTHORIZATION; NO BREACH. The execution, delivery and performance
of this Agreement, the Proprietary Information Agreement, the Registration
Rights Agreement and all other agreements contemplated hereby to which HRL is a
party have been duly authorized by HRL. Each of this Agreement, the Proprietary
Information Agreement and all other agreements contemplated hereby to which HRL
is a party constitutes a valid and binding obligation of HRL, enforceable in
accordance with its terms. Neither the execution and the delivery of this
Agreement, nor the consummation of the transactions contemplated hereby, will
(i) violate any constitution, statute, regulation, rule, injunction, judgment,
order, decree, ruling, charge, or other restriction of any government,
governmental agency, or court to which HRL is subject or (ii) conflict with,
result in a breach of, constitute a default under, result in the acceleration
of, create in any Party the right to accelerate, terminate, modify, or cancel,
or require any notice under any agreement, contract, lease, license, instrument,
or other arrangement to which HRL is a party or by which it is bound or to which
any of its assets are subject.

         (c) BROKERS' FEES. There are no claims for brokerage commissions,
finders' fees or similar compensation in connection with the transactions
contemplated by this Agreement based on any arrangement or agreement binding
upon HRL. HRL shall pay, and hold EDI harmless against, any liability, loss or
expense (including, without limitation, reasonable attorneys' fees and
out-of-pocket expenses) arising in connection with any such claim.

         (d) ACCREDITED INVESTOR. HRL is an "accredited investor" as such term
is defined in Rule 501(a) promulgated under the Securities Act.

         (e) INVESTMENT. HRL is not acquiring the EDI Capital Stock with a view
to or for sale in connection with any distribution thereof within the meaning of
the Securities Act.

         (f) HRL INVESTMENT REPRESENTATIONS. HRL hereby represents that it is
acquiring the EDI Capital Stock purchased hereunder or acquired pursuant hereto
for its own account with the present intention of holding such securities for
purposes of investment, and that it has no intention of selling such securities
in a public distribution in violation of the federal securities laws or any
applicable state securities laws; provided that nothing contained herein shall
prevent HRL and subsequent holders of EDI Capital Stock from transferring such
securities in compliance with the provisions of Section 7 hereof.

         (g) RESTRICTED SECURITIES. HRL understands that the EDI Capital Stock
may not be sold, transferred, or otherwise disposed of without registration
under the Securities Act or an exemption therefrom, and that in the absence of
an effective registration statement covering the EDI Capital Stock or an
available exemption from registration under the Securities Act, the EDI Capital
Stock must be held indefinitely.

                                      6-1

<PAGE>

         (h) THE ALGORITHM. HRL warrants that to the best of its actual
knowledge, the Algorithm does not infringe on any United States patent by
anything, material, design, composition, or processing. HRL warrants it has not,
prior to the Effective Date, entered into any agreement or otherwise granted any
now existing, or agreed to grant any future, license, right or privilege
relating to the Algorithm that conflicts in any way with this Agreement. HRL
further warrants that the Algorithm is the product of its own research and
invention and was created as a work for hire for EDI by HRL's staff and
personnel. No third party has any claim, title or right to the Algorithm or any
protected component parts.

                                      6-2

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