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                                                                    EXHIBIT 10.6
                                                                    ------------

             STANDARD INDUSTRIAL/COMMERCIAL MULTI-TENANT LEASE --
                                 MODIFIED NET

                  AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION
                                  [AIR LOGO]

1.   Basic Provisions ("Basic Provisions").

     1.1  Parties:  This Lease ("Lease"), dated for reference purposes only,
August 10, 1998, is made by and between W.F. Batton Company, Inc., a California
corporation ("Lessor") and Release Software, Inc., a California 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 990 Commercial Street, located in the
City of San Carlos, County of San Mateo, State of California, with zip code
94070, as outlined on Exhibit A attached hereto ("Premises").  The "Building" is
that certain building containing the Premises and generally described as
(describe briefly the nature of the Building): Approximately 15,363 rentable
square feet in a larger single story building.

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 walls 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:  39 unreserved vehicle parking spaces ("Unreserved
Parking Spaces"); and 0 reserved vehicle parking spaces ("Reserved Parking
Spaces").  (Also see Paragraph 2.6).

     1.3  Term: 6 years and 0 months ("Original Term") commencing October 16,
1998 ("Commencement Date") and ending October 15, 2004 ("Expiration Date").
(Also see Paragraph 3.)

     1.4  Early Possession: ______________ ("Early Possession Date"). (Also see
Paragraphs 3.2 and 3.3.)

     1.5  Base Rent: $30,726 per month ("Base Rent"), payable on the first day
of each month commencing October 1, 1998 (Also see Paragraph 4).
<PAGE>

[X]  If this box is checked, this Lease provides for the Base Rent to be
adjusted per Addendum Par. 50 attached hereto.

           1.6(a)  Base Rent Paid Upon Execution: $30,726 as Base Rent for the
period October 16, 1998 - November 15, 1998.

           1.6(b)  Lessee's Share of Common Area Operating Expenses: Thirty-Four
percent (34%) ("Lessee's Share") as determined by [X] 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: $203,764.17 ("Security Deposit"). (Also see
Paragraph 5) and Addendum par. 52.

     1.8   Permitted Use: Office, research and development, storage and
distribution of software. ("Permitted Use"). (Also see Paragraph 6.)

     1.9   Insuring Party. Lessor is the "Insuring Party." (Also see Paragraph
8.)

           1.10(a)  Real Estate Brokers.  The following real estate broker(s)
(collectively, the "Brokers") and brokerage relationships exist in this
transaction and are consented to by the Parties (check applicable boxes):

           [   ]       ________________ represents Lessor exclusively ("Lessor's
Broker");

           [   ]       ________________ represents Lessee exclusively ("Lessee's
Broker");

           [ X ]       Cornish & Carey Commercial represents both Lessor and
Lessee ("Dual Agency"). (Also see Paragraph 15.)

           1.10(b)  Payment to Brokers. Upon the execution of this lease by both
Parties, Lessor shall pay to 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 between Lessor and said Broker(s) (or in the event there is no
separate written agreement between Lessor and said Broker(s), the sum of $_____)
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 N/A ("Guarantor"), (Also see Paragraph 37.)

     1.12  Addenda and Exhibits.  Attached hereto is an Addendum or Addenda
consisting of Paragraphs 49 through 57, and Exhibits A through "B", all of which
constitute a part of this Lease.

<PAGE>

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 [1] 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
specificity 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 ninety (90) days after the Commencement
Date, correction of that non-compliance shall be the obligation of Lessee at
Lessee's sole cost and expense.

     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 codes, regulations and ordinances in effect on the commence Date.
Lessor further warrants to Lessee that Lessor has no knowledge of any claim
having been made by any governmental agency that a violation or violations of
applicable building codes, regulations, or ordinances exist with regard to the
Premises as of 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 1.8 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
been advised by the Broker(s) to satisfy 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 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.
<PAGE>

     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-
sized 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 upon 24 hours
prior 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 non-exclusive 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 Expenses shall be abated for the period of such
early occupancy. All other terms of this Lease, however, (including, but not
limited to the obligations to carry the insurance required by Paragraph 8) shall
be in effect during such period. Any such early possession shall not affect nor
advance the Expiration Date of the Original Term.
<PAGE>

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 payable
[2].

     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
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. [3]

     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 driveways,
entrances, parking spaces, parking areas, loading and unloading areas, ingress,
egress, direction of traffic, landscaped areas, walkways and utility raceways;

           (b)  With 48 hours notice 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 Industrial Center, 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.

[4]

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 and Lessee's Share of Operating Expenses shall be abated for the
period of such early occupancy. All other terms of this Lease, however,
(including, but not limited to the obligations to carry the insurance required
by Paragraph 8) shall be in effect during such period. Any such early possession
shall not affect nor advance the Expiration Date of the original Term.

<PAGE>

     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 [4A] if possession of the Premises is not
delivered to Lessee within sixty (60) days after the Commencement Date, Lessee
may, at its option, by notice in writing to Lessor within thirty (30) days after
the end of said sixty (60) day period, cancel this Lease, in which event the
parties shall be discharged from all obligations hereunder [4B]; provided
further, however, that if such written notice of Lessee is not received by
Lessor within said thirty (30) 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 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:
<PAGE>

                (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 [4C].

                       (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.

                (v)    Real Property Taxes (as defined in Paragraph 10.2) to be
                       paid by Lessor for the Building and the Common Areas
                       under Paragraph 10 hereof.

                (vi)   The cost of the premiums for the insurance policies
                       maintained by Lessor under Paragraph 8 hereof.

                (viii) Any other services to be provided by Lessor that are
                       stated elsewhere in this Lease to be a Common Area
                       Operating Expense.

[5]

          (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 by Lessee [5A] 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
<PAGE>

time to time of Lessee's Share of annual Common Area Operating Expenses and the
same shall be payable monthly as Lessor shall designate, during each 12-month
period of the Lease term, on the same day as the Base Rent is due hereunder.
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, Lessor 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 Shares 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. [6]

5.   Security Deposit.

Lessee shall deposit with Lessor upon Lessee's execution hereof the Security
Deposit 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 said Security Deposit, Lessee
shall within ten (10) days after written request therefore deposit monies with
Lessor sufficient to restore said Security Deposit to the full amount required
by this Lease.  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),within ten (10) days 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 its use,
or to be prepayment for any monies to be paid by Lessee under this Lease.

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 waste or is 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
by 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

<PAGE>

to withhold such consent, Lessor shall within five (5) business days after such
request give a written notification of same, which notice shall include an
explanation of Lessor's reasonable 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: (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 Substance
shall include, but not be limited to, hydrocarbons, petroleum, gasoline, crude
oil or any products or by-products thereof. Lessee shall not engage in any
activity in or about the Premises which constitutes a Reportable Use (as
hereinafter defined) of Hazardous Substances without the express prior written
consent of Lessor and compliance in a timely manner (at Lessee's sole cost and
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 any
Applicable Laws require 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 by Lessee in the normal course of the Permitted
Use, so long as such use is not a Reportable Use and does not expose the
Premises or neighboring properties 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 or injury and/or liability therefor, including but not limited to
the installation (and, at Lessor's option, removal on or before the Lease
expiration or earlier termination) of reasonably necessary protective
modifications to the Premises (such as concrete encasements).

           (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 or the building [7], 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 of sanitary sewer system).

<PAGE>

           (c)  Indemnification. Lessee shall indemnify, protect, defend and
hold Lessor, its agents, employees, lenders and ground lessor, if any, and the
Premises, harmless from and against any and all damages, liabilities, judgments,
costs, claims, liens, expenses, penalties, loss of permits and reasonable
attorneys' and consultants' fees arising out of or involving any Hazardous
Substance brought onto the Premises by or for Lessee. Lessee's obligations under
this Paragraph 6.2(c) 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 (including reasonable
consultants' and attorneys' fees and testing), removal, remediation, restoration
and/or abatement thereof, or of any contamination therein involved, and shall
survive the expiration or earlier 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
cost and expense, fully, diligently and in a timely manner, comply with all
"Applicable Requirements," which term is used in this Lease to mean all laws,
rules, regulations, ordinances and directives relating to the Premises
pertaining to the use, generation, manufacture, production, installation,
maintenance, removal, transportation, storage, spill, or release of any
Hazardous Substance) by Lessee now in effect or which may hereafter come into
effect. Lessee shall, within five (5) days after receipt of Lessor's written
request, provide Lessor with copies of all documents and information, including
but not limited to permits, registrations, manifests, applications, reports and
certificates, evidencing Lessee's compliance with any Applicable Requirements
specified by Lessor, and shall promptly 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
failure by Lessee or the Premises to comply with any Applicable Requirements.

[8]

     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 the Premises at any time in the case of an emergency, and otherwise at
reasonable times upon 24 hours prior notice for the purpose of inspecting the
condition of the Premises and for verifying compliance by Lessee with this Lease
and all Applicable Requirements (as defined in Paragraph 6.3), and Lessor shall
be entitled to employ experts and/or consultants in connection therewith to
advise Lessor with respect to Lessee's activities, including but not limited to
Lessee's installation, operation, use, monitoring, maintenance, or removal of
any Hazardous Substance on or from the Premises. The costs and expenses of any
such inspections shall be paid by the party requesting same, unless a Default or
Breach of this Lease by Lessee or a violation of Applicable Requirements or a
contamination, caused or materially contributed to by Lessee, is found to exist
or to be imminent, or unless the inspection is requested or ordered by a
governmental authority as the result of any such existing or imminent violation
or contamination. In such case, Lessee shall upon request reimburse Lessor or
Lessor's Lender, as the case may be, for the costs and expenses of such
inspections. [9]

[10]

<PAGE>

7.   Maintenance, Repairs, Utility Installations, Trade Fixtures and
     Alterations.

     7.1  Lessee's Obligations.

          (a) Subject to the provisions of Paragraphs 2.2 (Condition), 2.3
(Compliance with Covenants, Restrictions and Building Code), 7.2 (Lessor's
Obligations), 9 (Damage or Destruction) and 14 (Condemnation), Lessee shall, at
Lessee's sole cost and expense and at all times, keep the Premises and every
part thereof in good order, condition and repair (whether or not such portion of
the Premises requiring repair, or the means of repairing the same, are
reasonably or readily accessible to Lessee, and whether or not the need for such
repairs occurs as a result of Lessee's use, any prior use, the elements or the
age of such portion of the Premises), including without limiting the generality
of the foregoing, all equipment or facilities specifically serving the Premises,
such as plumbing, heating, air conditioning, ventilating, electrical, lighting
facilities, boilers, fired or unfired pressure vessels, fire hose connections
if within the Premises, fixtures, interior walls, interior surfaces of exterior
walls, ceilings, floors, windows, doors, plate glass, and skylights, but
excluding any items which are the responsibility of Lessor pursuant to Paragraph
7.2 below.  Lessee, in keeping the Premises in good order, condition and repair,
shall exercise and perform good maintenance practices.  Lessee's obligations
shall include restorations, replacements or renewals when necessary to keep the
Premises and all improvements thereon or a part thereof in good order, condition
and state of repair.  [11]

          (b) Lessee shall, at Lessee's sole cost and expense, procure and
maintain a contract, with copies to Lessor, in customary form and substance for
and with a contractor specializing and experienced in the inspection,
maintenance and service of the heating, air conditioning and ventilating system
for the Premises.  However, Lessor reserves the right, upon notice to Lessee, to
procure and maintain the contract for the heating, air conditioning and
ventilating systems, and if Lessor so elects, Lessee shall reimburse Lessor,
upon demand, for the cost thereof.

          (c) If Lessee fails to perform Lessee's obligations under this
Paragraph 7.1, Lessor may enter upon the Premises after ten (10) days' prior
written notice to Lessee (except in the case of an emergency, in which case no
notice shall be required), perform such obligations on Lessee's behalf, and put
the Premises in good order, condition and repair, in accordance with Paragraph
13.2 below.

     7.2  Lessor's Obligations. Subject to the provisions of Paragraphs 2.2
(Condition), 2.3 (Compliance with Covenants, Restrictions and Building Code),
4.2 (Common Area Operating Expenses), 6 (Use), 7.1 (Lessee's Obligations), 9
(Damage or Destruction) and 14 (Condemnation), Lessor shall keep in good order
and condition and repair and replace the foundations, exterior walls, structural
condition of interior bearing walls and exterior roof [11A], fire sprinkler
and/or standpipe 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 Expense pursuant to Paragraph 4.2. Lessor 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 of the
Premises. Lessee

<PAGE>

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 order, condition and repair.

     7.3  Utility Installations, Trade Fixtures, Alterations.

          (a) Definitions; Consent Required.  The term "Utility Installations"
is used in this Lease to refer to all air lines, power panels, electrical
distribution, security, fire protection systems, communications systems,
lighting fixtures, heating, ventilating and air conditioning equipment,
plumbing, and fencing in, on or about 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 which are provided by Lessor
under the terms of this Lease, 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).  Lessee shall not make nor cause
to be made any Alterations or Utility Installations in, on, under or about the
Premises without Lessor's prior written consent [12].  Lessee may, however, make
non-structural Utility Installations to the interior of the Premises (excluding
the roof) without Lessor's consent but upon notice to Lessor, so long as they
are not visible from the outside of the Premises, do not involve puncturing,
relocating or removing the roof or any existing walls, or changing or
interfering with the fire sprinkler or fire detection systems and [13] does not
exceed $2,500.00.

          (b) Consent.  Any Alterations or Utility Installations that Lessee
shall desire to make and which require the consent of the Lessor shall be
presented to Lessor in written form with detailed plans.  All consents given by
Lessor, whether by virtue of Paragraph 7.3(a) or by subsequent specific consent,
shall be deemed conditioned upon: (i) Lessee's acquiring all applicable permits
required by governmental authorities; (ii) the furnishing of copies of such
permits together with a copy of the plans and specifications for the Alteration
or Utility Installation to Lessor prior to commencement of the work thereon;
and (iii) the compliance by Lessee with all conditions of said permits in a
prompt and expeditious manner.  Any Alterations or Utility Installations by
Lessee during the term of this Lease shall be done in a good and workmanlike
manner, with good and sufficient materials, and be in compliance with all
Applicable Requirements.  Lessee shall promptly upon completion thereof furnish
Lessor with as-built plans and specifications therefor.  Lessor may, (but
without obligation to do so) condition its consent to any requested Alteration
or Utility Installation that costs $2,500.00 or more upon Lessee's providing
Lessor with a lien and completion bond in an amount equal to one and one-half
times the estimated cost of such Alteration or Utility Installation.

          (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 in or on the Premises as provided by law.  If
Lessee shall, in good faith, contest the validity of any such lien, claim or
demand, then Lessee shall, at



<PAGE>

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 against the Lessor or the Premises. If
Lessor shall require, Lessee shall furnish to Lessor a surety bond satisfactory
to Lessor in an amount equal to one and one-half times the amount of such
contested lien claim or demand, indemnifying Lessor against liability for the
same, as required by law for the holding of the Premises free from the effect of
such lien or claim. In addition, Lessor may require Lessee to pay Lessor's
attorneys' fees and costs in participating in such action if Lessor shall decide
it is to its best interest to do so.

     7.4  Ownership, Removal, Surrender, and Restoration.

          (a) Ownership.  Subject to Lessor's right to require their removal and
to cause Lessee to become the owner thereof as hereinafter provided in this
Paragraph 7.4, all Alterations and Utility Installations made to the Premises by
Lessee shall be the property of and owned by Lessee, but considered a part of
the Premises.  Lessor may, at any time and at its option, elect in writing to
Lessee to be the owner of all or any specified part of the Lessee-Owned
Alterations and Utility Installations.  Unless otherwise instructed per
Subparagraph 7.4(b) hereof, all Lessee-Owned Alterations and Utility
Installations shall, at the expiration or earlier termination of this Lease,
become the property of Lessor and remain upon the Premises and be surrendered
with the Premises by Lessee.

          (b) Removal.  Unless otherwise agreed in writing, Lessor may [13A]
require that any or all Lessee-Owned Alterations or Utility Installations be
removed by the expiration or earlier termination of this Lease, notwithstanding
that their installation may have been consented to by Lessor.  Lessor may
require the removal at any time of all or any part of any Alterations or Utility
Installations made without the required consent of Lessor.  [14]

          (c) Surrender/Restoration.  Lessee shall surrender the Premises by the
end of the last day of the Lease term or any earlier termination date, clean and
free of debris and in good operating order, condition and state of repair,
ordinary wear and tear [14A] excepted.  Ordinary wear and tear shall not include
any damage or deterioration that would have been prevented by good maintenance
practice or by Lessee performing all of its obligations under this Lease.
Except as otherwise agreed or specified herein, the Premises, as surrendered,
shall include the Alterations and Utility Installations.  The obligations of
Lessee shall include the repair of any damage occasioned by removal of Lessee's
Trade Fixtures, furnishings, equipment, and Lessee-Owned Alterations and Utility
Installations, as well as the removal of any storage tank installed by or for
Lessee, and the removal, replacement, or remediation of any soil, material or
ground water contaminated by lessee, all as may then be required by Applicable
Requirements and/or good practice.  Lessee's Trade Fixtures shall remain the
property of Lessee and shall be removed by Lessee subject to its obligation to
repair.  [15]

8.   Insurance; Indemnity.

     8.1  Payment of Premiums.  The cost of the premiums for the insurance
policies maintained by Lessor under this Paragraph 8 shall be a Common Area
Operating Expense pursuant to Paragraph 4.2 hereof. Premiums for policy periods
commencing prior to, or

<PAGE>

extending beyond, the term of this Lease shall be pro-rated 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 during
the term of this Lease a Commercial General Liability policy of insurance
protecting Lessee, Lessor and any Lender(s) whose names have been provided to
Lessee in writing (as additional insureds) against claims for bodily injury,
personal injury and property damage based upon, involving 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 $2,000,000 per occurrence with
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 required by this Lease or as carried by Lessee shall
not, however, limit the liability of Lessee nor relieve Lessee of any obligation
hereunder.  All insurance to be 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.

          (b) Carried by Lessor.  Lessor shall also maintain liability insurance
described in Paragraph 8.2(a) above, 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
during the term of this Lease a policy or policies in the name of Lessor, with
loss payable to Lessor and to any Lender(s), insuring against loss or damage to
the Premises.  Such insurance shall be for full replacement cost, as the same
shall exist from time to time, or the amount required by any Lender(s), but in
no event more than the commercially reasonable and available insurable value
thereof if, by reason of the unique nature or age of the improvements involved,
such latter amount is less than full replacement costs.  Lessee-Owned
Alterations and Utility Installations, Trade Fixtures and Lessee's personal
property shall be insured by Lessee pursuant to Paragraph 8.4.  If the coverage
is available and commercially appropriate, Lessor's 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 any
additional costs resulting from debris removal and reasonable amounts of
coverage for the enforcement of any ordinance or law regulating the
reconstruction or replacement of any undamaged sections of the Building required
to be demolished or removed by reason of the enforcement of any building,
zoning, safety or land use laws as the result of a covered loss, but not
including plate glass insurance.  Said policy or policies shall also contain an
agreed valuation provision in lieu of any co-insurance 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.

<PAGE>

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 during
the term of this Lease a policy or policies in the name of Lessor, with loss
payable to lessor and any Lender(s), insuring the loss of the full rental and
other charges payable by all lessees of the Building to Lessor for one year
(including all Real Property Taxes, insurance costs, all common Area Operating
Expenses and any scheduled rental increases).  Said insurance may provide that
in the event the lease is terminated by reason of an insured loss; the period of
indemnity for such coverage shall be extended beyond the date of the completion
of repairs or replacement of the Premises, to provide for one full year's loss
of rental revenues from the date of any such loss. Said insurance shall contain
an agreed valuation provision in lieu of any co-insurance clause, and the amount
of coverage shall be adjusted annually to reflect the projected rental income,
Real Property Taxes, insurance premium costs and other expenses, if any,
otherwise payable, 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 Industrial Center 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 cost 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. 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
certificates of insurance that such insurance is in force.

     8.5  Insurance Policies.  Insurance required hereunder shall be in
companies duly licensed 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, or such other rating as may be required by a Lender, as set
forth in the most current issue of "Best's Insurance Guide." Lessee shall not do
or permit to be done anything which shall invalidate the insurance policies
referred to in this Paragraph 8. Lessee shall cause to be delivered to Lessor,
within seven (7) days after the Early Possession Date or the Commencement Date,
certified copies of, or certificates evidencing the existence and amounts of,
the insurance required under Paragraphs 8.2(a) and 8.4. No such policy shall be
cancelable or subject to modification except after thirty (30) days' prior
written notice to Lessor. Lessee shall at least thirty (30) days prior to the
expiration of such policies, furnish Lessor with evidence of renewals or
"insurance 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.
<PAGE>

     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 (whether in contract or in tort) against
the other, for loss or damage to their property arising out of or incident to
the perils required to be insured against under Paragraph 8. The effect of such
releases and waivers of the right to recover damages shall not be limited by the
amount of insurance carried or required, or by any deductibles applicable
thereto. Lessor and Lessee agree to have their respective insurance companies
issuing property damage insurance 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 [16] negligence or willful misconduct
and/or breach of express warranties, 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, costs, liens, judgments, penalties, loss of permits, attorneys'
and consultants' fees, expenses and/or liabilities arising out of, involving, or
in connection with, the occupancy of the Premises by Lessee, the conduct of
Lessee's business, any act, omission or neglect of Lessee, its agents,
contractors, employees or invitees, and out of any Default or Breach by Lessee
in the performance in a timely manner or of any obligation on Lessee's part to
be performed under this Lease. The foregoing shall include, but not be limited
to, the defense or pursuit of any claim or any action or proceeding involved
therein, and whether or not (in the case of claims made against Lessor)
litigated and/or reduced to judgment. In case any action or proceeding be
brought against Lessor by reason of any of the foregoing matters, Lessee upon
notice from Lessor shall 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 so
indemnified. [17]

     8.8  Exemption of Lessor from Liability.  [18] 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, obstruction or other defects of pipes, fire sprinklers, wires,
appliances, plumbing, air conditioning or lighting fixtures, or from any other
cause, whether said injury or damage results from conditions arising upon the
Premises or upon other portions of the Building of which the Premises are a
part, from other sources or places, and regardless of whether the cause of such
damage or injury or the means of repairing the same is accessible or not. Lessor
shall not be liable for any damages arising from any act or neglect or any other
lessee of Lessor nor from the failure by Lessor to enforce the provisions of any
other lease in the Industrial Center.

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



<PAGE>

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, 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.

          (c) "Insured Loss" shall mean damage or destruction to the 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 building codes, ordinances or
laws, 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.

     9.2  Premises Partial Damage -- Insured Loss.  If Premises Partial
Damage that is an Insured Loss occurs, then Lessor shall, at Lessor's expense,
repair such damage [19] (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.  In the event, however, that
there is a shortage of insurance proceeds and such shortage is due to the fact
that, by reason of the unique nature of the improvements in the Premises, full
replacement cost insurance coverage 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 same, or adequate assurance thereof,
within ten (10) days following receipt of written notice of such shortage and
request therefor.  If Lessor receives said funds or adequate assurance thereof
within said ten (10) day period, Lessor shall complete them as soon as
reasonably possible and this Lease shall remain in full force and effect.  If
Lessor does not receive such funds or assurance within said period, Lessor may
nevertheless elect by written notice to Lessee within ten (10) days thereafter
to 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.  If Lessor does not receive such funds or assurance within
such ten (10) day period, and if Lessor does not so elect to restore and repair,
then this Lease shall terminate as of the date of the occurrence of the


<PAGE>

damage or destruction. Unless otherwise agreed, Lessee shall in no event have
any right to reimbursement from Lessor for 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 rather than Paragraph 9.2,
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 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 and
this Lease shall continue in full force and effect), Lessor may at Lessor's
option, 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) give written notice to Lessee within thirty (30) days after receipt by
Lessor of knowledge of the occurrence of such damage of Lessor's desire to
terminate this Lease as of the date of the casualty. 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 repair of such
damage totally at Lessee's expense and without reimbursement from Lessor. Lessee
shall provide Lessor with the required funds or satisfactory assurance thereof
within thirty (30) days following such commitment from Lessee. 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 [20] after the required funds
are available. If Lessee does not give such notice and provide the funds or
assurance thereof within the times specified above, this Lease shall terminate
as of the date of the casualty.

     9.4  Total Destruction.  Notwithstanding any other provision hereof, if
Premises Total Destruction occurs (including any destruction required by any
authorized public authority), this Lease shall terminate as of the date of the
casualty following the date of such Premises Total Destruction, whether or not
the damage or destruction is an Insured Loss or was caused by a negligent or
willful act of Lessee. In the event, however, that the damage or destruction was
caused by Lessee, Lessor shall have the right to recover Lessor's damages from
Lessee except as released and waived in Paragraph 9.7.

     9.5  Damage Near End of Term.  If at any time during the last six (6)
months of the term of this Lease there is a damage for which the cost to repair
exceeds on month's Base Rent, whether or not an Insured Loss, Lessor or Lessee
may terminate this Lease effective as of the date of occurrence of such damage
by giving written notice to the other of its election to do so within thirty
(30) days after the date of occurrence of such damage. Provided, however, if
Lessee at that time has an exercisable option to extend this Lease or to
purchase the Premises, then the 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 ten (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
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

<PAGE>

or assurance during such period, then this Lease shall terminate as of the date
set forth in the first sentence of Paragraph 9.5.

     9.6  Abatement of Rent; Lessee's Remedies.

          (a) In the event of (i) Premises Partial Damage or (ii) 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
under the provisions of this Paragraph 9 and shall not commence, in a
substantial and meaningful way, the repair or restoration of the Premises within
ninety (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 as of the date of the casualty.  If Lessee gives such
notice to Lessor and such Lenders and such repair or restoration is not
commenced within thirty (30) days after receipt of such notice, this Lease shall
terminate as of the date specified in said notice.  If Lessor or a Lender
commences the repair or restoration of the Premises within thirty (30) days
after the receipt of such notice, this Lease shall continue in full force and
effect.  "Commence" as used in Paragraph 9.6 shall mean either the unconditional
authorization of the preparation of the required plans, or the beginning of the
actual work on the Premises, whichever occurs first.

          9.7  Hazardous Substance Conditions.  If a Hazardous Substance
Condition occurs [20A] Lessor may, if the estimated cost to investigate and
remediate such condition exceeds twelve (12) times the then monthly Base Rent,
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. 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 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. [20B]


<PAGE>

     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.

[21]

10.  Real Property Taxes.

     10.1  Payment of Taxes.  Lessor shall pay the Real Property Taxes, as
defined in Paragraph 10.2, applicable to the Industrial Center, and except as
otherwise provided in Paragraph 10.3, any such amounts shall be included in the
calculation of Common Area Operating Expenses in accordance with the provisions
of Paragraph 4.2.

     10.2  Real Property Tax Definition.  As used herein, the term "Real
Property Taxes" shall include any form of real estate tax or assessment,
general, special, ordinary or extraordinary, and any license fee, commercial
rental tax, improvement bond or bonds, levy or tax (other than inheritance,
personal income or estate taxes) imposed upon the Industrial Center by any
authority having the direct or indirect power to tax, including any city, state
or federal government, or any school, agricultural, sanitary, fire, street,
drainage, or other improvement district thereof, levied against any legal or
equitable interest of Lessor in the Industrial Center or any portion thereof,
Lessor's right to rent or other income therefrom, and/or Lessor's business of
leasing the Premises. The term "Real Property Taxes" shall also include any tax,
fee, levy, assessment or charge, or any increase therein, imposed by reason of
events occurring, or changes in Applicable Law taking effect, during the term of
this Lease, including but not limited to a change in the ownership of the
Industrial Center or in the improvements thereon, the execution of this Lease,
or any modification, amendment or transfer thereof, and whether or not
contemplated by the Parties. In calculating Real Property Taxes for any calendar
year, the Real Property Taxes for any real estate tax year shall be included in
the calculation of Real Property Taxes for such calendar year based upon the
number of days which such calendar year and tax year have in common.

[22]

     10.3  Additional Improvements.  Common Area 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 Industrial
Center by other lessees or by Lessor for the exclusive enjoyment of such other
lessees. Notwithstanding Paragraph 10.1 hereof, Lessee shall, however, pay to
Lessor at the time Common Area 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.

<PAGE>

     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 or stored within the Industrial Center.
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 ten
(10) days after receipt of a written statement setting forth the taxes
applicable to Lessee's property.

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 or 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.  (See Addendum, Paragraph 57.)

           (a)  Lessee shall not voluntarily or by operation of law assign,
transfer, mortgage or otherwise transfer or encumber (collectively, "assign") or
sublet all or any part of Lessee's interest in the Lease or in the Premises
without Lessor's prior written consent.  [23]

          (b)   A change in the control of Lessee shall constitute an assignment
requiring Lessor's consent.  The transfer, on a cumulative basis, of fifty
percent (50%) or more of the voting control of Lessee shall constitute a change
in control for this purpose. [23A]

          (c)   The involvement of Lessee or its assets in any transaction, or
series of transactions (by way of merger, sale, acquisition, financing,
refinancing, transfer, leveraged buy-out 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, as hereinafter
defined, by an amount equal to or greater than fifty percent (50%) of such Net
Worth of Lessee as it was represented to Lessor at the time of full execution
and delivery 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, at whichever time said Net Worth of
Lessee was or is greater, shall be considered an assignment of this Lease by
Lessee to which Lessor may reasonably withhold its consent.  "Net Worth of
Lessee" for purposes of this


<PAGE>

Lease shall be the net worth of Lessee (excluding any Guarantors) established
under generally accepted accounting principles consistently applied.

           (d)   An assignment or subletting of Lessee's interest in this Lease
without Lessor's specific prior written consent shall, at Lessor's option, be a
Default curable after notice per Paragraph 13.1, or a non-curable Breach without
the necessity of any notice and grace period.  If Lessor elects to treat such
unconsented to assignment or subletting as a non-curable Breach, Lessor shall
have the right to terminate this Lease.

           (e)   Lessee's remedy for any breach of this 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, any assignment or subletting
shall not (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 [24] nor (iii) after the primary
liability of Lessee for the payment of Base Rent and other sums due Lessor
hereunder or for the performance of any other obligations to be performed by
Lessee under this Lease.

           (b)   Lessor may accept any 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 any rent for performance shall constitute a waiver or
estoppel of Lessor's right to exercise its remedies for the Default or Breach by
Lessee of any of the terms, covenants or conditions of this Lease.

           (c)   The consent of Lessor to any assignment or subletting shall not
constitute a consent to any subsequent assignment or subletting by Lessee or to
any subsequent or successive assignment or subletting by the assignee or
sublessee.  Lessor may consent to subsequent sublettings and assignments of the
sublease or any amendments or modifications thereto without notifying Lessee or
anyone else liable under this Lease or the sublease and without obtaining their
consent, and such action shall not relieve such persons from liability under
this Lease or the sublease.

           (d)   In the event of any Default or Breach of Lessee's obligation
under this Lease, Lessor may proceed directly against Lessee, any Guarantors or
anyone else responsible for the performance of the Lessee's obligations under
this Lease, including any sublease, without first exhausting Lessor's remedies
against any other person or entity responsible therefor 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. [24A] Lessee agrees to
provide Lessor with such other or additional information and/or documentation as
may be reasonably requested by Lessor.

<PAGE>

           (f)   Any assignee of, or sublessee under, this Lease shall, by
reason of accepting such assignment or entering into such sublease, be deemed,
for the benefit of Lessor, to have assumed and agreed to confirm 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 in writing.

     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 incorporated therein:.

           (a)   Lessee hereby assigns and transfers to Lessor all of Lessee's
interest in all rentals and income arising from any sublease of all or a portion
of the Premises heretofore or hereafter made by Lessee, and Lessor may collect
such rent and income and apply same toward Lessee's obligations under this
Lease; provided, however, that until a Breach (as defined in Paragraph 13.1)
shall occur in the performance of Lessee's obligations under this Lease, Lessee
may, except as otherwise provided in this Lease, receive, collect and enjoy the
rents accruing under such sublease.  Lessor shall not, by reason of the
foregoing provision or any other assignment of such sublease to Lessor, nor by
reason of the collection of the rents from a sublessee, be deemed liable to the
sublessee for any failure of Lessee to perform and comply with any of Lessee's
obligations to such sublessee under such Sublease.  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 Lessor the rents and other charges due and to become
due under the sublease.  Sublessee shall rely upon any such statement and
request from Lessor and shall pay such rents and other charges to Lessor without
any obligation or right to inquire as to whether such Breach exists and
notwithstanding any notice from or claim from Lessee to the contrary.  Lessee
shall have no right or claim against such sublessee, or, until the Breach has
been cured, against Lessor, for any such rents and other charges so paid by
said sublessee to Lessor.

           (b)   In the event of a Breach by Lessee in the performance of its
obligations under this Lease, Lessor, at its option and without any obligation
to do so, may require any 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 other prior default
or breaches of such sublessor under such sublease.

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

           (d)   No sublessee under a sublease approved by Lessor 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


<PAGE>

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.

[25]

13.  Default; Breach; Remedies.

     13.1  Default; Breach.  Lessor and Lessee agree that if an attorney is
consulted by Lessor in connection with a Lessee Default or Breach (as
hereinafter defined), $350.00 is a reasonable minimum sum per such occurrence
for legal services and costs in the preparation and service of a notice of
Default, and that Lessor may include the cost of such services and costs in said
notice as rent due and payable to cure said default.  A "Default" by Lessee is
defined as a failure by Lessee to observe, comply with or perform with any of
the terms, covenants and conditions or rules applicable to Lessee under this
Lease.  A "Breach" by Lessee is defined as the occurrence of any one or more of
the following Defaults, and, where a grace period for cure after notice is
specified herein, the failure by Lessee to cure such Default prior to the
expiration of the applicable grace period, and shall entitle Lessor to pursue
the remedies set forth in Paragraphs 13.2 and/or 13.3:

           (a)   The vacating of the Premises without the intention to reoccupy
same, or the abandonment of the Premises and failure to pay rent.

           (b)   Except as expressly otherwise provided in this Lease, the
failure by Lessee to make any payment of Base Rent, Lessee's Share of Common
Area Operating Expenses, or any other monetary payment required to be made by
Lessee hereunder as and when due, the failure by Lessee to provide Lessor with
reasonable evidence of insurance or surety bond required under this Lease, or
the failure of Lessee to fulfill any obligation under this Lease which endangers
or threatens life or property, where such failure continues for a period of
three (3) days following written notice thereof by or on behalf of Lessor to
Lessee.

           (c)   Except as expressly otherwise provided in this Lease, the
failure by Lessee to provide Lessor with reasonable written evidence (in duly
executed original form, if applicable) of (i) compliance with Applicable
Requirements relating to Hazardous Substances per Paragraph 6.3 [25A], (ii) the
inspection, maintenance and service contracts required under Paragraph 7.1(b),
(iii) the rescission of an unauthorized assignment or subletting per Paragraph
12.1, (iv) a Tenancy Statement per Paragraphs 16 or 37, (v) the subordination or
non-subordination of this Lease per Paragraph 30, (vi) the guaranty of the
performance of Lessee's obligations under this Lease if required under
Paragraphs 1.11 and 37, (vii) the execution of any document requested under
Paragraph 42 (assessments), or (viii) any other documentation or information
which Lessor may reasonable require of Lessee under the terms of this lease,
where any such failure continues for a period of ten (10)business days following
receipt of written notice by or on behalf of Lessor 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 40 hereof that
are to be observed, complied with or performed by Lessee, other than those
described in Subparagraphs 13.1(a), (b) or (c), above, where such Default
continues for a period of thirty (30) days after receipt of written

<PAGE>

notice thereof by or on behalf of Lessor to Lessee; provided, however, that if
the nature of Lessee's Default is such that more than thirty (30) days are
reasonably required for its cure, then it shall not be deemed to be a Breach of
this Lease by Lessee if Lessee commences such cure within said thirty (30) day
period and thereafter diligently prosecutes such cure to completion.

           (e)  The occurrence of any of the following events: (i) the making by
Lessee of any general arrangement or assignment for the benefit of creditors;
(ii) Lessee's becoming a "debtor" as defined in 11 U.S. Code Section 101 or any
successor statute thereto (unless, in the case of a petition filed against
Lessee, the same is dismissed within sixty (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 sixty (60) 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 sixty (60) days; provided, however, in the
event that any provision of this Subparagraph 13.1(e) is contrary to any
applicable law, such provision shall be of no force or effect, and shall not
affect the validity of the remaining provisions.

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

           (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 breach basis,
and Lessee's failure, within sixty (60) days following written notice by or on
behalf of Lessor to Lessee of any such event, to provide Lessor with written
alternative assurances of 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 affirmative duty or
obligation of Lessee under this Lease, within ten (10) days after written notice
to Lessee (or in case of an emergency, without notice), Lessor may at its option
(but without obligation to do so), 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 to Lessor upon 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 own
option, may require all future payments to be made under this Lease by Lessee to
be made only by cashier's check.  In the event of a Breach of this Lease by
Lessee (as defined in Paragraph 13.1), 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, Lessor may:

          (a)   Terminate Lessee's right to possession of the Premises by any
lawful means, in which case this Lease and the term hereof shall terminate and
Lessee shall immediately surrender possession of the Premises to Lessor.  In
such event Lessor shall be
<PAGE>

entitled to recover from Lessee: (i) the worth at the time of the award of the
unpaid rent which had been earned at the time of termination; (ii) the worth at
the time of 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
reletting, 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 San Francisco or
the Federal Reserve Bank District in which the Premises are located at the time
of award plus one percent (1%). Efforts by Lessor to mitigate damages caused by
Lessee's Default or Breach of this Lease shall not waive Lessor's right to
recover damages under this Paragraph 13.2. If termination of this Lease is
obtained through the provisional remedy of unlawful detainer, Lessor shall have
the right to recover in such proceeding the 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 for such rent and/or damages. If a notice and grace
period required under Subparagraph 13.1(b), (c) or (d) was not previously given,
a notice to pay rent or quit, or to perform or quit, as the case may be, given
to Lessee under any statute authorizing the forfeiture of leases for unlawful
detainer shall also constitute the applicable notice for grace period purposes
required by Subparagraph 13.1(b), (c) or (d). In such case, the applicable grace
period under the unlawful detainer statute shall run concurrently after the one
such statutory notice and the failure of Lessee to cure the Default within the
greater of the two (2) 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 in effect
(in California under California Civil Code Section 1951.4) after Lessee's Breach
and recover the rent as it becomes due, provided Lessee has the right to sublet
or assign, subject only to reasonable limitations. Lessor and Lessee agree that
the limitations on assignment and subletting in this Lease are reasonable. Acts
of maintenance or preservation, efforts to relet the Premises, or the
appointment of a receiver to protect the Lessor's interest under this Lease,
shall not constitute a termination of the Lessee's right to possession.

           (c)  Pursue any other remedy now or hereafter available to Lessor
under the laws or judicial decisions of the state wherein the Premises are
located.

           (d)  The expiration or termination of this Lease and/or the
termination of Lessee's right to possession shall not release Lessee
from liability under any indemnity provisions of this Lease as to matters
occuring or accruing during the term hereof or by reason of Lessee's
occupancy of the Premises.

     13.3  Late Charges.  Lessee hereby acknowledges that late payment by
Lessee to Lessor of rent and other sums due hereunder 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 the terms of any ground lease, mortgage or deed of trust covering the
Premises.
<PAGE>

Accordingly, if any installment of rent or other sum due from Lessee shall not
be received by Lessor or Lessor's designee within ten (10) days after [26] such
amount shall be due, then, without any requirement for notice to Lessee, Lessee
shall pay to Lessor a late charge equal to six percent (6%) of 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 late payment by
Lessee. 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 Lessor from exercising any of the other rights and remedies granted
hereunder. In the event that a late charge is payable hereunder, whether or not
collected, for three (3) consecutive installments of Base Rent, then
notwithstanding Paragraph 4.1 or any other 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 13.5, a
reasonable time shall in no event be less than thirty (30) days after receipt by
Lessor, and by any Lender(s) whose name and address shall have been furnished to
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 thirty (30) days after such
notice are reasonably required for its performance, then Lessor shall not be in
breach of this Lease if performance is commenced within such thirty (30) day
period and thereafter diligently pursued to completion.

<PAGE>

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 (all of which are
herein called "condemnation"), this Lease shall terminate as to the part so
taken as of the date the condemning authority takes title or possession,
whichever first occurs.  If more than ten percent (10%) of the floor area of the
Premises, or more than twenty-five percent (25%) of the portion of the Common
Areas designated for Lessee's parking, is taken by condemnation, Lessee may, at
Lessee's option, to be exercised in writing within ten (10) days after Lessor
shall have given Lessee written notice of such taking (or in the absence of such
notice, within ten (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 the same
proportion as the rentable floor area of the Premises taken bears to the total
rentable floor area of the Premises.  No reduction Base Rent shall occur if the
condemnation does not apply to any portion of the Premises.  Any award for the
taking of all or any part of the Premises under the power of eminent domain or
any payment made under threat of the exercise of such power shall be the
property of Lessor, whether such award shall be made as compensation for
diminution of value of the leasehold or for the taking of the fee, or as
severance damages; provided, however, that Lessee shall be entitled to any
compensation, separately awarded to Lessee for Lessee's relocation expenses
and/or loss of Lessee's Trade Fixtures and loss of goodwill in the event that
this Lease is not terminated by reason of such condemnation, Lessor shall to the
extent of its net severance damages received, over and above Lessee's Share of
the legal and other expenses incurred by Lessor in the condemnation matter,
repair any damage to the Premises caused by such condemnation authority.

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  Representation 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 as named in Paragraph 1.10(a) in connection with the
negotiation of this Lease and/or the consummation of the transaction
contemplated hereby, and that no broker or other person, firm or entity other
than said named Broker(s) is entitled to any commission or finder's fee in
connection with said transaction.  Lessee and Lessor do each hereby agree to
idemnify, 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, and/or attorneys' fees
reasonably incurred with respect thereto.

16.  Tenancy and Financial Statements.

     16.1  Tenancy Statement.  Each Party (as "Responding Party") shall
within ten (10) business days after written notice from the other Party (the
"Requesting Party") execute, acknowledge and deliver to the Requesting Party a
statement in writing a form similar to the then most current "Tenancy Statement"
form published by the American Industrial Real Estate


<PAGE>

Association, plus such additional information, confirmation and/or statements as
may be reasonably requested by the Requesting Party.

     16.2  Financial Statement.  If Lessor desires to finance, refinance,
or sell the Premises or the Building, or any part thereof, Lessee and all
Guarantors shall deliver to any potential lender or purchaser designated by
Lessor such financial statements of Lessee and such Guarantors as may be
reasonably required by such lender or purchaser, including but not limited to
Lessee's financial statements for the past three (3) years.  All such financial
statements shall be received by Lessor and such lender or purchaser in
confidence and shall be used only for the purposes herein set forth and may be
requested no more than twice per calendar year.

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. In the event
of a transfer of Lessor's title or interest in the Premises or in this Lease,
Lessor shall deliver to the transferee or assignee (in cash or by credit) any
unused Security Deposit held by Lessor at the time of such transfer or
assignment. Except as provided in Paragraph 15.3, 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 two percent (2%) 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.

23.  Notices.

     23.1  Notice Requirements. All notices required or permitted by this
Lease shall be in writing and may be delivered in person (by hand or by
messenger or courier service) or may be sent by regular, certified or registered
mail or U.S. Postal Service Express Mail, with postage prepaid, or by facsimile
transmission during normal business hours, and shall be deemed sufficiently
given if served in a manner specified in this Paragraph 23. The address noted

<PAGE>

adjacent to a Party's signature on this Lease shall be that Party's address for
delivery or mailing of notice purposes.  Either party may be written notice to
the other specify a different address for notice purposes, except that upon
Lessee's taking possession of the Premises, the Premises shall constitute
Lessee's address for the purpose of mailing or delivering notices to Lessee.  A
copy of all notices required or permitted to be given to Lessor hereunder shall
be concurrently transmitted to such party or parties at such addresses as Lessor
may from time to time hereafter designate by written notice to Lessee.

     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 forty-eight (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
guarantees next day delivery shall be deemed given twenty-four (24) hours after
delivery of the same to the United States Postal Service or courier. If any
notice is transmitted by facsimile transmission or similar means, the same shall
be deemed served or delivered upon telephone or facsimile confirmation of
receipt of the transmission thereof, provided a copy is also delivered via
delivery or mail. If notice is received on a Saturday or Sunday or a 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 any other term, covenant or condition hereof. Lessor's consent to
or approval of, any such 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. Regardless of Lessor's
knowledge of a Default or Breach at the time of accepting rent, the acceptance
of rent by Lessor shall not be a waiver of any Default or Breach by Lessee of
any provision hereof. Any payment given Lessor 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 recordation 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 earlier termination of
this Lease. In the event that Lessee holds over in violation of this Paragraph
26 than the Base Rent payable from and after the time of the expiration or
earlier termination of this Lease shall be increased to one hundred fifty
percent (150%) of the Base Rent applicable during the month immediately
preceding such expiration of earlier termination. Nothing contained herein shall
be construed as a consent by Lessor to any holding over by Lessee.

<PAGE>

27.  Cumulative Remedies. No remedy or election hereunder shall be deemed
exclusive but shall, wherever possible, be cumulative with all other remedies at
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 by Lessor upon the real property of which the Premises are a
part, to any and all advances made on the security thereof, and to all renewals,
modifications, consolidations, replacements and extensions thereof. Lessee
agrees that the Lenders holding any such Security Device shall have no duty,
liability or obligation to perform any of the obligations of Lessor under this
Lease, but that in the event of Lessor's default with respect to any such
obligation, Lessee will give any Lender whose name and address have been
furnished Lessee in writing for such purpose notice of Lessor's default pursuant
to Paragraph 13.5. If any Lender shall elect to have this Lease and/or any
Option granted hereby superior to the lien of its Security Device and shall give
written notice thereof to Lessee, this Lease and such Options shall be deemed
prior to such Security Device, notwithstanding the relative dates of the
documentation or recordation thereof.

     30.2  Attornment.  Subject to the non-disturbance provisions of
Paragraph 30.3, Lessee agrees to attorn to a Lender or any other party who
acquires ownership of the Premises by reason of a foreclosure of a Security
Device, and that in the event of such foreclosure, such new owner shall not:
(i) be liable for any act of omission of any prior lessor or with respect to
events occurring prior to acquisition of ownership, (ii) be subject to any
offsets or defenses which Lessee might have against any prior lessor, or (iii)
be bound by prepayment of more than one month's rent.

     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 assurance (a "non-disturbance agreement")
from the Lender that Lessee's possession 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.

     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 Premises, Lessee and Lessor shall execute such
further writings as may be reasonably required to separately document any such
subordination or non-subordination, attornment and/or non-disturbance agreement
as is provided for herein.



<PAGE>

31.  Attorneys' Fees. If any Party or Broker brings an action or proceeding to
enforce the terms hereof or 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 n 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, judgment,
or the abandonment by the other Party or Broker of its claim or defense. The
attorneys' fee award shall not be computed in accordance with any court fee
schedule, but shall be such as to fully reimburse all attorneys' fees reasonably
incurred. Lessor shall be entitled to attorneys' fees, costs and expenses
incurred in preparation and service of notices of Default and consultations in
connection therewith, whether or not a legal actin is subsequently commenced in
connection with such Default or resulting Breach. Broker(s) shall be intended
third party beneficiaries of this paragraph 31.


32.  Lessor's Access; Showing Premises; Repairs. Lessor and Lessor's agents
shall have the right to enter the Premise at any time, in the case of an
emergency, and otherwise at reasonable times upon reasonable prior notice for
the purpose of showing the same to prospective purchasers, lenders, or lessees,
and making such alterations, repairs, improvements or additions to the Premises
or to the Building, as Lessor may reasonably deem necessary. Lessor may at any
time place on or about the Premises or Building any ordinary "For Sale" signs
and Lessor may at any time during the last one hundred eighty (180) days of the
term hereof place on or about the Premises any ordinary "For Lease" signs. All
such activities of Lessor shall be without abatement of rent or liability to
Lessee.

33.  Auctions. Lessee shall not conduct, nor permit to be conducted, either
voluntarily or involuntarily, any auction upon the Premises without first having
obtained Lessor's prior written consent. Notwithstanding anything to the
contrary in this Lease, Lessor shall not be obligated to exercise any standard
of reasonable ness in determining whether to grant such consent.

34.  Signs. Lessee shall not place any sign upon the exterior of the Premises or
the Building, except that Lessee may, with Lessor's prior written consent,
install (but not on the roof) such signs as are reasonably required to advertise
Lessee's own business so long as such signs are in a location designated by
Lessor and comply with Applicable Requirements and the signage criteria
established for the Industrial Center by Lessor. The installation of any sign on
the Premises by or for Lessee shall be subject to the provisions of Paragraph 7
(Maintenance, Repairs, Utility Installations, Trade Fixtures and Alterations).
Unless otherwise expressly agreed herein, Lessor reserves all rights to the use
of the roof of the Building, and the right to install advertising signs on the
Building, including the roof, which do not unreasonably interfere with the
conduct of Lessee's business; Lessor shall be entitled to all revenues from such
advertising signs.

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

<PAGE>

sublease or lesser estate in the Premises; provided, however, Lessor shall in
the event of any such surrender, termination or cancellation, have the option to
continue any one or all of any existing subtenancies. Lessor's failure with in
ten (10) days following any such event to make a written election 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.

          (a)  Except for Paragraph 33 hereof (Auctions) or 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 sad expenses (including but not
limited to architects', attorneys', engineers' and other consultants' fees)
incurred in the consideration of, or response to, a request by Lessee for any
Lessor consent pertaining to this Lease or the Premises, relating to consents to
an assignment a subletting, proposed alterations or the presence or use of a
Hazardous Substance, shall be paid by Lessee to Lessor upon receipt of an
invoice and supporting documentation therefor.

38.  Quiet Possession. Upon payment by Lessee of the rent for the Premises and
the performance of all of the covenants, conditions and provisions on Lessee's
part to be observed and performed under this Lease, Lessee shall have quiet
possession of the Premises or for the entire term hereof subject to all of the
provisions of this Lease.

39.  Options.

     39.1  Definition. As used in this Lease, the word "Option" has the
following meaning: (a) the right to extend the term of this Lease or to renew
this Lease or to extend or renew any lease that Lessee has on other property of
Lessor; (b) the right of first refusal to lease the Premises or the right of
first offer to lease the Premises or the right of first refusal to lease other
property of Lessor or the right of first offer to lease other property of
Lessor; (c) the right to purchase the Premises, or the right of first refusal to
purchase the Premises, or the right of first offer to purchase the Premises, or
the right to purchase other property of Lessor, or the right of first refusal to
purchase other property of Lessor, or the right of first offer to purchase other
property of Lessor.

     39.2  Options Personal to Original Lessee. [27] Each Option granted to
Lessee in this Lease is personal to the original Lessee named in Paragraph 1.1
hereof, and cannot be voluntarily or involuntarily assigned or exercised by any
person or entity other than said original Lessee while the original Lessee is in
full and actual possession of the Premises and without the intention of
thereafter assigning or subletting. The Options, if any, herein granted to
Lessee are not assignable, either as a part of an assignment of this Lease or
separately or apart therefrom, and no Option may be separated from this Lease in
any manner, by reservation or otherwise.

     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 to extend or renew this Lease have been validly exercised.

     39.4  Effect of Default on Options.


<PAGE>

          (a)  Lessee shall have no right to exercise an Option, notwithstanding
any provision in the grant of Option to the contrary during the time Lessee is
in Breach of this Lease, or in the event that Lessor has given to Lessee three
(3) or more notices of separate Defaults under Paragraph 13.1 during the twelve
(12) month period immediately preceding the exercise of the Option and, the
Defaults not are cured.

          (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)  All rights of Lessee under the provisions of 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 during the original
term of this Lease, Lessor gives to Lessee three (3) or more notices of separate
Defaults under Paragraph 13.1 during any twelve month period, and the Defaults
are not cured, or 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, was well as for the convenience of other occupants
or tenants of the Building and the Industrial Center an their invitees.

41.  Security Measures. Lessee hereby acknowledges that the rental 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
recordation of parcel maps and restrictions, so long as such easements, rights
of way, utility raceways, dedications, maps and restrictions do not reasonably
interfere with the use of the Premises by Lessee or diminish its parking; Lessee
agrees to sign any documents reasonably requested by Lessor to effectuate any
such easement rights, dedication, map or restrictions.

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 under the provisions of this
Lease.

44.  Authority. If either Party hereto is a corporation, trust, or general or
limited partnership, each individual executing this Lease on behalf of such
entity represents and warrants that he or



<PAGE>

she is duly authorized to execute and deliver this Lease on its behalf. If
Lessee is a corporation ,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 Lessor or Lessee or Lessor's
agent or Lessee's agent and submission of same to Lessee or Lessor shall not be
deemed an offer to lease. This Lease is not intended to be binding unit 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. The Parties shall amend
this Lease from time to time to reflect any adjustments that are made to the
Base Rent or other rent payable under this Lease. As long as they do not
materially change Lessee's obligations hereunder, Lessee agrees to make such
reasonable non-monetary modifications to this Lease as may be reasonably
required by an institutional insurance company or pension plan Lender in
connection with the obtaining of normal financing or refinancing of the property
of which the Premises are a part.

48.  Multiple Parties. Except as otherwise expressly provided herein, if more
than one person or entity is named herein as either Lessor or Lessee, the
obligations of such multiple parties shall be the joint and several
responsibility of all persons or entities named herein as such Lessor or Lessee.

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 LESE 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 AS TO THE LEGAL AN D 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.


<PAGE>

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

<TABLE>
<CAPTION>
<S>                                                     <C>
Executed at:      Palo Alto, Calif.                     Executed at:   /s/ Marielena Tidwell
                -----------------------------------                  ----------------------------------------
On:   August 20, 1998                                   On:        August 20, 1998
      ---------------------------------------------              --------------------------------------------
                                                                  Menlo Park, CA 94025

By LESSOR:        W.F. BATTON & CO., INC.               By LESSEE:     RELEASE SOFTWARE, INC.
                  A California corporation                             A California corporation
                  ---------------------------------                    --------------------------------------
By:               /s/ Marie A. Batton                   By:            /s/ Marielena Tidwell
                  ---------------------------------                    --------------------------------------
Name Printed:         Marie A. Batton                   Name Printed:      Marielena Tidwell
                  --------------------------------                     --------------------------------------
Title:                Vice President                    Title:         VP, HR & Admin
                  ---------------------------------                    --------------------------------------
Address:          _________________________________     Address:       ______________________________________
                  _________________________________                    ______________________________________
                  _________________________________                    ______________________________________
                  _________________________________                    _____________________________________
Telephone:        (    )___________________________     Telephone:         (    )___________________________
Facsimile:        (    )___________________________     Facsimile:         (    )___________________________



BROKER:                                                 BROKER:

Executed at: ______________________________________     Executed at: ________________________________________
On: _______________________________________________     On:__________________________________________________
By: _______________________________________________     By: _________________________________________________
Name Printed: _____________________________________     Name Printed: _______________________________________
Title:        _____________________________________     Title:        _______________________________________
Address:                                                Address:

                 __________________________________                     _____________________________________
Telephone:        (    )  _________________________     Telephone:         (    )____________________________
Facsimile:        (    )                                Facsimile:         (    )____________________________
</TABLE>

<PAGE>

                    [CORNISH & CAREY COMMERCIAL LETTERHEAD]

                             FIRST LEASE ADDENDUM

ADDENDUM A TO THE LEASE DATED AUGUST 10, 1998 BY AND BETWEEN W.F. BATTON & CO.,
INC., A CALIFORNIA CORPORATION, LESSOR, AND RELEASE SOFTWARE, INC., A CALIFORNIA
CORPORATION, LESSEE, FOR THOSE PREMISES LOCATED AT 990 COMMERCIAL STREET, SAN
CARLOS, CALIFORNIA.

          Lessee and Lessor further agree as follows:

          In the event of any inconsistency between the provisions of the
printed portion of the Lease and this Addendum, this Addendum shall govern.

49.  Occupancy and Commencement Date:

          Lessee shall occupy space upon substantial completion of Lessee
Improvements estimated to be October 16, 1998 subject to the City of San Carlos
building and planning departments and the timely receipt of a building permit.
Lessee shall be permitted one (1) week of early access for the purpose of data
and phone cabling and furniture set up provided it is coordinated with the
contractor and does not interfere with the final construction of the Premises.
Rent shall commence October 16, 1998, or upon substantial completion of Lessee
Improvements, whichever occurs later.  "Substantial completion" shall mean that
(i) Lessor has completed the Lessee Improvements in accordance with the final
plans and specifications approved by Lessor and Lessee; (ii) there remains no
incomplete or defective item of Lessee Improvements that would adversely affect
Lessee's intended use of the Premises; (iii) Lessor has delivered legal
possession of the Premises and the Lessee Improvements to Lessee; and (iv)
Lessor has obtained all approvals and permits from the appropriate governmental
authorities required for the legal occupancy of the Premises and the Lessee
Improvements.

50.  Base Rent Schedule.

          Lessee shall pay Base Rent to Lessor, as follows:

     Months                  Rent/SF/Mo./NNN        Monthly Rent
     01-12                         $2.00              $30,726.00
     13-24                         $2.08              $31,955.04
     25-36                         $2.16              $33,233.24
     37-48                         $2.25              $34,562.57
     49-60                         $2.34              $35,945.07
     61-72                         $2.43              $37,382.88


51.  Lease Improvements:

          Lessor, at Lessor's sole expense, shall build out the Premises
pursuant to the improvement plan approved by Lessor and Lessee attached hereto
as Exhibit "B" and made a part hereof. Carpet and other finishes shall be of
standard commercial grade quality. Lessor

                                       1
<PAGE>

shall construct the Lessee Improvements in accordance with the plans and
specifications approved by Lessee and in accordance with all Applicable
Requirements (including without limitation, the Americans with Disabilities Act
of 1990), in a good and workmanlike manner, free of defects and using new
materials and equipment of good quality. Within thirty (30) days after the
Commencement Date, Lessee shall have the right to submit a written "punch list"
to Lessor, setting forth any defective item of construction, and Lessor shall
promptly cause such items to be corrected.

          Notwithstanding anything to the contrary contained in this Lease,
Lessee's acceptance of the Premises or submission of a "punch list" shall not be
deemed a waiver of Lessee's right to have defects in the Lessee Improvements or
the Premises repaired at no cost to Lessee, provided that Lessee gives written
notice to Lessor of such defects within ninety (90) days after the Commencement
Date, pursuant to Paragraph 2.2 of this Lease, and Lessor shall repair such
defect as soon as practicable. After the expiration of said period of ninety
(90) days, Lessor shall, upon written request by Lessee, assign to Lessee all
warranties with respect to the Premises, including warranties which would reduce
Lessee's maintenance obligations under this Lease, and shall cooperate with
Lessee in Lessee's enforcement of such warranties.

52.  Security Deposit:

          Upon lease execution, Lessee shall deliver to Lessor a security
deposit in the amount of $203,764.17, of which $101,882.09 shall be in the form
of cash and the balance of $101,882.09 shall be in the form of a bank letter of
credit acceptable to Lessor and Lessee, to be held by Lessor, which Lessee shall
renew from time to time. Provided that no default by Lessee under this Lease
then remains uncured, Lessor shall release the letter of credit to Lessee upon
the effective date of the initial underwritten public offering of securities by
Lessee or the expiration of the Lease Term, whichever occurs first. The letter
of credit shall name Lessor as the beneficiary thereunder, and provide that
draws thereunder will be honored upon receipt by the issuer of a written
statement signed by Lessor stating that Lessor is entitled to draw down on the
letter of credit. If Lessee is in default under the Lease beyond any applicable
notice and cure period, Lessor shall be entitled to draw under the letter of
credit only an amount equal to the amount of any monetary default as defined
below (or, only if partial draws are not permitted, the entire amount of the
letter of credit). As used herein, "monetary default" means any delinquent
installment of Base Rent, Additional Rent, or any other sum payable by Lessee
under this Lease, (as and when Lessee fails to pay the same beyond any
applicable notice and cure period contained in this Lease), plus any damages to
which Lessor is entitled under the Lease. Lessor agrees that the letter of
credit may also provide for partial draws by Lessor. To the extent not applied
by Lessor, pursuant to the provisions of the Lease, any amount drawn under the
letter of credit shall be held or applied by Lessor as a security deposit,
subject to the terms of Paragraph 5 of this Lease.

53.  Expansion:

          Lessee understands that Lessor does not control the adjacent space in
the Building. However, if the adjacent space in the Building becomes available
to Lessor for lease during the term of this Lease while Lessee is in possession
of the Premises and no default by Lessee hereunder remains uncured, Lessor will
give written notice to Lessee of the availability of

                                       2
<PAGE>

the adjacent space for lease and Lessor's asking rent and general lease terms,
before Lessor places the adjacent space on the market for lease. The "adjacent
space in the Building" means the space currently subleased to Acteron. Lessee
shall have ten (10) days after receipt of written notice from Lessor specifying
the rent and the other economic terms requested for the adjacent space in which
to notify Lessor in writing of its agreement to lease such space. The expiration
date of the new lease for the adjacent space shall be coterminous with the
expiration date of this Lease. For example, if the space becomes available
during the original term of this Lease, Lessor agrees to lease the adjacent
space to Lessee for the unexpired term of this Lease and to give Lessee a five
(5) year extension option on the new space. The new space will be offered to
Lessee on substantially the same terms as this Lease, except for any terms
relating to Base Rent and Lessor shall not be required to make any Lessee
improvements. The parties agree to promptly enter into an amendment to this
Lease for the adjacent space following Lessee's notice to Lessor of its
agreement to lease such space. If Lessee fails to timely exercise such right of
first offer or if Lessee fails to execute and deliver to Lessor said amendment
to this Lease within ten (10) days after delivery thereof by Lessor to Lessee,
Lessee shall nave no right to lease such adjacent space. Lessee's rights under
this Paragraph 53 shall be subject to the existing extension rights of Acteron
Corporation and Quantic, existing tenants.*

54.  Option to Extend:

          Lessor hereby grants to Lessee one (1) option to extend the Lease term
for a period of five (5) years.  The option to extend is subject to the
provisions of Paragraph 39 of the printed portion of this Lease.

          Lessee may exercise the option to extend by giving written notice of
exercise to Lessor at least six (6) months, but not more than twelve (12)
months, prior to the expiration of the Original Term.

          The option extension period, if exercised, shall be upon the same
terms and conditions as the Original Term, except that there shall be no
additional option to extend and the Base Rent during the option period shall be
equal to one hundred percent (100%) of the then fair market Base Rent of the
Premises as determined by agreement between Lessor and Lessee. Between the six
(6) months period, which is not more than twelve (12) months nor less than six
(6) months prior to the Commencement Date of the extended term, Lessor shall,
upon request by Lessee, negotiate in good faith with Lessee concerning the
market lease rate for the extended Term. If the parties cannot agree within one
hundred fifty (150) days prior to the commencement of the extended term, then
the market lease rate (and periodic increases) shall be determined by
appraiser(s) selected and governed by the Rules of the American Arbitration
Association. All other terms and conditions contained in this Lease (excluding
any further option to extend) shall remain in full force and effect and shall
apply during the extended term. The cost of the appraisal shall be shared
equally by Lessor and Lessee. In no event shall the


_________________________

     *  If Lessee exercises the expansion option, Lessor shall not unreasonably
withhold or delay its consent to any tenant improvements or alterations proposed
to be made to the expansion space by Lessee at Lessee's expense, provided that
such tenant improvements or alterations are substantially comparable to the
tenant improvements in the existing Premises.

                                       3
<PAGE>

initial monthly Base Rent for the option period be less than the Base Rent
payable by Lessee for the last full calendar month of the initial lease term.

          Failure by Lessee to exercise the option to extend in a timely manner
shall cause the option to lapse, time being of the essence.

55.  Dual Representation:

          Lessor and Lessee acknowledge that Cornish & Carey Commercial
represents both Lessor and Lessee, and Lessor and Lessee consent thereto.

56.  Parking:

          A plan indicating the location of parking for the Premises is
attached as Exhibit C. Lessor shall restripe the parking lot serving the
Premises within 30 days after the Commencement Date. If approved by the City of
San Carlos the parking lot shall be restriped for compact cars. If the number of
parking spaces is increased as a result thereof, Lessee's number of parking
spaces shall increase in an amount determined by multiplying Lessee's Share
(34%) by the total number of parking spaces appurtenant to the Industrial Center
after the restriping.

57.  Assignment/Sublease:

          Lessee shall not assign this Lease, or any interest herein,
voluntarily or involuntarily, and shall not sublet the Premises or any part
thereof, without the prior written consent of Lessor in each instance, which
consent shall not be unreasonably withheld, subject to the following terms and
conditions:

          (a)  Upon receipt by Lessor of a request from Lessee to consent to a
Sublease of all or any portion of the Premises, together with information
concerning the proposed Sublessee and the proposed rent and terms of the
Sublease, Lessor shall have the right, at Lessor's option, to terminate this
Lease by giving written notice of termination to Lessee, in which event the
parties shall be relieved as of the effective date of termination from all
further obligations accruing thereafter; provided, however, that Lessee shall
have the right to negate Lessor's termination of this Lease by giving Lessor
written notice of such negation ("Lessee's Negation Notice") with three (3)
business days after Lessee received Lessor's notice electing to terminate in
lieu of consenting to an assignment or subleasing.  Upon such negation, this
Lease shall continue in full force and effect and Lessee's request to sublease
or assign shall be considered withdrawn.  If Lessor exercises its right of
termination, Lessor shall have the right to enter into a new direct Lease with
such proposed Sublessee, or with any other Lessee procured by Lessor, upon such
terms and conditions as Lessor shall approve, and Lessee shall have no right or
interest in the new Lease or the income therefrom.

          (b)  If Lessor consents to any assignment or Sublease by Lessee,
Lessor may require as a condition of such consent that Lessee pay to Lessor, as
and when received by Lessee, fifty percent (50%) of the amount of any excess of
the consideration to be received by Lessee in connection with such assignment or
Sublease over and above the rental amount fixed

                                       4
<PAGE>

by this Lease and payable by Lessee to Lessor, (excluding sums received for
Lessee's personal property and trade fixtures).

          (c)  Lessee shall reimburse Lessor for Lessor's reasonable attorney's
fees incurred in reviewing and negotiating the terms of the Sublease and
Lessor's consent thereto.

          (d)  The assignment or Sublease shall specify that further assignment
or subsubletting of all or any portion of the Premises by the initial sublessee
or assignee from Release Software, Inc. is expressly prohibited.

          (e)  The option to extend referred to in Paragraph 54 of this Addendum
is personal to Lessee and Permitted Transferees and is not transferable and is
not exercisable by an assignee or sublessee.

          Lessee hereby stipulates that the foregoing terms and conditions are
reasonable.


Lessor:   W.F. BATTON & CO., INC.
          A CALIFORNIA CORPORATION


By:  /s/ Marie A. Batton                          Date:  Aug. 20, 1998
   -----------------------------------                 -------------------------
     Marie A. Batton, Vice President

Lessee:   RELEASE SOFTWARE, INC.
          A CALIFORNIA CORPORATION


By:  /s/ Marielena Tidwell                        Date:  8/18/99
   -----------------------------------                 -------------------------
    Marielena Tidwell, VP Resources &
    Administration

<PAGE>

                 ADDENDUM B TO STANDARD INDUSTRIAL/COMMERCIAL
                  MULTI-TENANT LEASE - MODIFIED NET, BETWEEN
                  W. F. BATTON COMPANY, INC., AS LESSOR, AND
                RELEASE SOFTWARE, INC., AS LESSEE, FOR PREMISES
           LOCATED AT 990 COMMERCIAL STREET, SAN CARLOS, CALIFORNIA

          Lessor and Lessee further agree that the following language shall be
inserted in the Lease where the corresponding numbers are set forth in the
Lease:

     1.   that the roof is in good condition and repair and

     2.   within twenty (20) days after receipt of written demand by Lessor.

     3.   Notwithstanding anything to the contrary contained in this Lease,
Lessee shall not be required to comply with any rule or regulation unless the
same applies non-discriminatorily to all occupants of the Industrial Center, and
does not unreasonably interfere with Lessee's use of the Premises or Lessee's
parking rights.

     4.   Lessor's exercise of the foregoing rights shall not materially
increase Lessee's obligations nor materially diminish Lessee's rights under this
Lease, or interfere with Lessee's parking rights.

     4A.  as required by Paragraph 51 of Addendum A and as depicted on the
architectural drawing (Sheet A-2) prepared by LRS Associates, dated 8/10/98,
attached as Exhibit B.

     4B.  and Lessor shall promptly refund all funds previously tendered by
Lessee.

     4C.  fences, roof membrane and the non-structural portions of the roof

     5.   Notwithstanding anything to the contrary contained in this Lease, in
no event shall Lessee have any obligation to perform, to pay directly, or to
reimburse Lessor for, all or any portion of the following repairs, maintenance,
improvements, replacements, premiums, claims, losses, fees, commissions,
charges, disbursements, attorneys' fees, experts' fees, costs and expenses
(collectively, "Costs"): (i) Costs occasioned by the act, omission or violation
of Applicable Requirements, ground leases, security instruments, or private
restrictions by Lessor, any other occupant of the Building, or their respective
agents, employees or contractors, or Costs to correct any construction defect in
the Tenant Improvements constructed for Lessee; (ii) Costs occasioned by fire,
acts of God or other casualties, or by the exercise of the power of eminent
domain, including the cost to restore the Industrial Center unless caused by
Tenant or its agents, in which event the entire costs shall be paid by Lessee;
(iii) Costs which would properly be capitalized under generally accepted
accounting principles and which relate to repairs, alterations, improvements,
replacements, equipment and tools except to the extent that Lessee's share of
such Costs is amortized over the useful life of the capital improvement in
question in accordance with generally accepted accounting principles; (iv) Costs
which Lessee pays directly to a third person or for which Lessor has a right of
reimbursement from others; (v) Costs (A) arising from the disproportionate use
of any utility or service supplied by Lessor to any other occupant of the
Building; or (B) associated with utilities and services of a type not provided
to

<PAGE>

Lessee; (vi) Costs incurred in connection with negotiations or disputes with
other occupant(s) of the Building, and Costs arising from the violation by
Lessor or any occupant of the Building (other than Lessee) of the terms and
conditions of any lease or other agreement; (vii) depreciation, amortization or
other expense reserves; or (viii) Costs related to Hazardous Substances, except
to the extent the Cost is caused by the storage, release, use or disposal of the
Hazardous Substance in question by Lessee in violation of Applicable
Requirements, in which case Tenant shall be directly responsible for any costs
associated therewith in accordance with the provisions of Paragraph 6.2; (ix)
leasing commissions and other expenses incurred in connection with leasing space
in the Building or the Industrial Center; (x) points, fees and other charges for
Landlord's financing or refinancing of the Building or the Industrial Center,
and penalties or charges for failure to perform Landlord's obligations under any
loans or indebtedness secured by the Building or the Industrial Center; (xi)
advertising and promotional costs; (xii) costs of repairs directly resulting
from the negligence or willful misconduct of Landlord, its agents or employees;
(xiii) the cost of any new construction (as opposed to replacement of the
Industrial Center improvements due to breakage or normal wear and tear); (xiv)
repairs or rebuilding necessitated by condemnation; (xv) costs associated with
the operation of the business of the corporation or entity which constitutes
Landlord, or the operation of any parent, subsidiary or affiliate of Landlord,
as the same are distinguished from the costs of operation of the Industrial
Center; (xvi) any fee for Landlord's general administrative and overhead
expenses; (xvii) rent for any project management office; (xviii) a property
management fee in excess of two percent (2%) of Base Rent, which management fee
shall include all salaries and compensation of any kind payable to employees of
Lessor; or (xix) any other cost, expense, fee or charge which in accordance with
generally accepted property management practices would not be considered an
expense of managing, operating, maintaining and repairing the Industrial Center.

     5A.  by the later of the date the next monthly installment of Base Rent is
due or

     6.   If the statement is delivered to Lessee after the expiration or
earlier termination of this Lease and Lessee has made payments exceeding
Lessee's Share for the last year of the Term, Lessor shall refund the
overpayment to Lessee within twenty (20) days after the date of the statement.
In addition, within sixty (60) days after receipt by Lessee of Lessor's
statement of Operating Expenses for any prior calendar year during the Term,
Lessee or its authorized representative shall have the right at Lessee's expense
to inspect the books of Lessor during the business hours of Lessor at Lessor's
office in the Building, or, such other location as Lessor reasonably may
specify, for the purpose of verifying the information contained in the
statement.  Unless Lessee asserts specific errors within sixty (60) days after
receipt of the statement, the statement shall be deemed correct as between
Lessor and Lessee, except as to individual components subsequently determined to
be in error by a future audit.

     7.   which is caused by Lessee or its employees, agents or invitees

     8.   Notwithstanding anything to the contrary contained in this Lease, if
repairs or alterations are required to comply with Applicable Requirements
generally applicable to the condition of the Premises for use as office/research
and development, and not required or caused by Lessee's particular use or
activities or by any Alterations or Utility Installations (as defined below)
made by Lessee, such repairs or alterations shall be made by Lessor and the cost
thereof


                                       2
<PAGE>

shall be amortized over the useful life of the item as determined in accordance
with generally accepted accounting principles, and Lessee shall pay Lessee's
Share of such cost on a monthly basis as such amortized cost falls due during
the remainder of the Term.

     9.   to the extent such costs and expenses are caused by Lessee, its
agents, employees or contractors.

     10.  Lessor represents and warrants that (a) the only environment report it
has provided the Lessee respecting the Industrial Center is that certain report
prepared by Aqua Science Engineers Inc. dated March 24, 1997, (b) a copy of such
report has been provided to Lessee, and (c) Lessor has received no written
notice that there are any other Hazardous Substances on or about the Industrial
Complex except as disclosed in such report.  Lessor's representations and
warranties under this Paragraph shall survive termination of this Lease.

     11.  Notwithstanding anything to the contrary contained in this Lease,
Lessee's repair and maintenance obligations hereunder shall not require Lessee
to construct or pay for repairs in the Premises which are properly capitalized
under generally accepted accounting principles except to the extent that
Lessee's Share of such costs are amortized over the useful life of the item
determined in accordance with generally accepted accounting principles.  In
addition, Lessee shall not be obligated to bear any costs in connection with the
presence of Hazardous Substances unless the same were stored, used or disposed
of by Lessee, its agents, employees or contractors on or in the Premises, or in
connection with the correction of any condition existing on the Premises as of
the Commencement Date.

     11A. Subject to reimbursement pursuant to Paragraph 4.2, Lessor shall keep
in good condition and repair the

     12.  ,which shall not be unreasonably withheld or delayed with respect to
Alterations proposed to be made by Lessee to the Option Space (as defined
below).  Otherwise, Lessor may withhold its consent to Lessee's request to
construct Alterations in the Premises in its sole and absolute discretion.

     13.  for any particular work of improvement the cost thereof

     13A. at the time Tenant requests consent for any Alteration or Utility
Installation

     14.  Landlord agrees that the tenant improvements to be constructed
pursuant to Paragraph 51 shall not be required to be removed at the expiration
or earlier termination of this Lease.

     14A. acts of God, casualties, and condemnation

     15.  the damage caused by the removal thereof.

     16.  and its agents' , employees' and contractors'

     17.  Notwithstanding anything to the contrary contained in this Lease,
Lessor shall not be released from all damages, liabilities, judgments, actions,
claims, attorneys' fees, consultants'

<PAGE>

fees, payments, costs and expenses arising from the negligence or willful
misconduct of Lessor or its agents, employees, contractors or invitees; Lessor's
violation of Applicable Requirements, or a breach of Lessor's obligations or
representations under this Lease.

     18.  Except to the extent caused by the negligence or willful misconduct of
Lessor, its agents, employees or contractors,

     19.  to substantially the same condition immediately prior to the damage or
destruction,

     20.  and restore the Premises to substantially the same condition
immediately prior to the damage or destruction

     20A. and Lessor is ordered by any governmental entity to remediate the same
or if Lessor voluntarily enters into a written agreement with any governmental
entity to remediate the same,

     20B. but in no event less than 180 days after the date the notice is
delivered to Lessee.

     21.  9.10  Notwithstanding anything to the contrary contained in this
Lease, Lessee shall have the option to terminate this Lease in the event any of
the following occurs, which option may be exercised by delivery to Lessor of a
written notice of election to terminate within thirty (30) days after Lessee
receives from Lessor the estimate of the time needed to complete such
restoration: (i) the Premises, with reasonable diligence, cannot be fully
repaired by Lessor within two hundred seventy (270) days after the damage or
destruction taking into consideration any then-existing force majeure
circumstances; or (ii) Lessor commences the repairs but fails to complete them
within two hundred seventy (270) days after the date of the damage or
destruction and such failure is not attributable to force majeure.

     22.  Notwithstanding anything to the contrary contained in this Lease,
Lessee shall not be required to pay any portion of any tax or assessment expense
(i) levied on Lessor's rental income, unless such tax or assessment expense is
imposed in lieu of real property taxes; (ii) in excess of the amount which would
be payable if such tax or assessment expense were paid in installments over the
longest possible term; (iii) imposed on land and improvements other than the
Industrial Center; or (iv) attributable to Lessor's net income, inheritance,
gift, transfer, franchise, estate or state taxes.

     23.  ,which shall not be unreasonably withheld or delayed (subject to
Paragraph 57 in Addendum A).

     23A. provided that a sale of Lessee's capital stock through any public
exchange shall not be deemed an assignment, subletting or other transfer of this
Lease or the Premises requiring Lessor's consent.

     24.  unless otherwise agreed in writing by Lessor,

     24A. Within ten (10) business days after Lessee has submitted the required
information, a copy of the proposed sublease or assignment, and a proposed
Lessor consent form, Lessee shall

<PAGE>

notify in writing of whether it will approve or disapprove of the proposed
sublessee or assignee. If Lessor should disapprove such proposed sublessee or
assignee, it shall specify its reasonable reasons for such disapproval in the
disapproval notice. If Lessor fails to approve or disapprove of such proposed
sublessee or assignee with such ten (10) day period, the proposed sublease or
assignment shall be deemed approved.

     25.  12.4  Notwithstanding anything to the contrary contained in this
Lease, Lessee, may (provided Lessee is not then in default hereunder beyond any
applicable cure period), sublet the Premises or assign this Lease without
Lessor's prior written consent to: (i) a subsidiary, division or corporation
controlling, controlled by or under common control with Lessee and such entity
has a net worth equal or greater to Lessee's net worth on the Commencement Date;
(ii) a successor corporation related to Lessee by merger, consolidation, non-
bankruptcy reorganization or government action; or (iii) a purchaser of
substantially all of Lessee's assets located at the Premises (collectively,
"Permitted Transferees"); provided that the assignee or sublessee expressly
assumes the obligations of Lessee under this Lease for the benefit of Lessor and
delivers a copy thereof to Lessor.  For purposes of this Lease, a sale of
Lessee's capital stock through any public exchange shall not be deemed an
assignment, subletting or other transfer of this Lease or the Premises requiring
Lessor's consent.

     25A. which compliance shall not require that Lessee perform any
environmental survey or prepare any environmental report if Lessee has not
caused a release, spill or disposal of Hazardous Substances on or about the
Premises;

     26.  after receipt of written notice from Lessor that such sum is due,

     27.  Except with respect to a Permitted Transferee,


Lessor:   W. F BATTON & CO., INC.
          A CALIFORNIA CORPORATION


By:  /s/Marie A Batton                                 Date:  August 20, 1998
     Marie A. Batton, Vice President

Lessee:   RELEASE SOFTWARE, INC.,
          A CALIFORNIA CORPORATION


By:  /s/Marielena Tidwell                              Date:  8/18/98
     Marielena Tidwell, VP Resources & Administration

<PAGE>

August 20, 1998



Lessor (W.F. Batton Company, Inc., a California Corporation) and Lessee (Release
Software, Inc., a California Corporation) acknowledge that Lessee intends to
park vehicles in front of the new glass storefront on the right side of the
building located at 990 Commercial Street, San Carlos, CA.

Lessee:   RELEASE SOFTWARE, INC., a
          California Corporation



By:  /s/ Marielena Tidwell                               Date:  8/21/98


Lessor:   W.F. BATTON COMPANY, INC., a
          California Corporation



By:  /s/ Pamela Foley                                    Date:  8/21/98

<PAGE>

                          Description of Improvements
                    to be performed by W.F. Batton Co., Inc.
                           For Release Software, Inc.
                    at 990 Commercial Street, San Carlos, CA

A.   Demo and construction of new walls per attached Exhibit "A."

B.   All areas to be carpeted (carpet and base have been selected by Tenant.
     Base is Burke Thunder 727p; carpet is Philadelphia Vocation China Rose
     #83482) except for the following two rooms: the lunch room shall have VCT
     floor covering, and the server room shall have static dissipative flooring.
     (Any cost increase between standard VCT floor covering and static
     dissipative floor covering shall be paid in cash by Tenant upon invoice.)

C.   Drop ceiling with 2' x 4' florescent lights throughout reception area,
     conference rooms, kitchen area, copy room, server room and the "additional
     space" (2,321 square feet).

D.   Open bullpen area shall have an exposed ceiling with 400 watt metal halide
     low/bay light fixtures, existing insulation will be covered with a black
     cap sheet at the roof line. HVAC will be a spiral pipe system with dropped
     defusers per Title 24 Code. The server room area shall have a 5 ton cooling
     unit only which will be provided and paid for by Tenant, in cash upon
     invoice.

E.   Standard electrical drops throughout all enclosed areas with specified
     amperage and locations for the server room and the copy room. Extra
     electrical outlet costs for the server room requested by tenant at the
     11:00 AM meeting August 17, 1998 shall be paid for in cash by Tenant upon
     invoice.) Power will be provided in the open bull pen area for the tenant-
     furnished power poles.

F.   Install laminated counter top and shelving (not cabinets) in copy room and
     upper and lower cabinets in kitchen area.

     This document is only a description of the tenant improvement work, formal
construction drawings will be agreed to and signed by all parties.

<PAGE>

       SERVICE AGREEMENT: Equipment List: Quantic Industries, Building 1

<TABLE>
<CAPTION>
     System & Equipment Description             Rating         Remaining    Quantity of    ASI Visits
       Type, Maintenance, Serial #               Size            Life          Units        per year
--------------------------------------------------------------------------------------------------------
<S>                                        <C>               <C>            <C>           <C>
AC4 TRANE, PACKAGE UNIT                         5 TONS          9 YEARS                1             4
MODEL:  SFCA-503-LA
SERIAL:  77B-14952
--------------------------------------------------------------------------------------------------------
AC5 CARRIER, PACKAGE UNIT                       7 TONS          5 YEARS                1             4
MODEL:  50R0008600EA
SERIAL:  N/A
--------------------------------------------------------------------------------------------------------
AC6 CARRIER, PACKAGE UNIT                       4 TONS          5 YEARS                1             4
MODEL:  48LD005
SERIAL:  3482G53615
--------------------------------------------------------------------------------------------------------
AC7 CARRIER, PACKAGE UNIT                      3.5 TONS         5 YEARS                1             4
MODEL:  50YQ04260
SERIAL:  0216752
--------------------------------------------------------------------------------------------------------
AC8 CARRIER, PACKAGE UNIT                       5 TONS          5 YEARS                1             4
MODEL:  48LD006
SERIAL:  0782G38330
--------------------------------------------------------------------------------------------------------
AC9 CARRIER, PACKAGE UNIT                       5 TONS          5 YEARS                1             4
MODEL:  50QD006600VA
SERIAL:  2282G48875
--------------------------------------------------------------------------------------------------------
</TABLE>

SERVICE AGREEMENT: AQ - Air Quality & Filter Service:  Building 1

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
      Filter Type               Filter              Quantity            Changes           Total
      Description                Size              Per Change           Per Year         Quantity
--------------------------------------------------------------------------------------------------------
<S>                       <C>                  <C>                 <C>                 <C>
AC-4 PLEATED, HI-E              16X20X2                         4                   4            16
--------------------------------------------------------------------------------------------------------
AC-5 PLEATED, HI-E              16X25X2                         1                   4             4
                                20X25X2                         1                   4             4
--------------------------------------------------------------------------------------------------------
AC-6 PLEATED, HI-E              20X25X1                         1                   4             4
                                16X25X1                         1                   4             4
--------------------------------------------------------------------------------------------------------
AC-7 PLEATED, HI-E              14X25X1                         1                   4             4
--------------------------------------------------------------------------------------------------------
AC-8 PLEATED, HI-E              16X25X1                         1                   4             4
                                20X25X1                         1                   4             4
--------------------------------------------------------------------------------------------------------
AC-9 PLEATED, HI-E              24X24X2                         2                   4             8
                              BAG FILTER                      REMOVE
--------------------------------------------------------------------------------------------------------
</TABLE>