<PAGE>

                                                                   EXHIBIT 10.11

                           PROPERTY LEASING CONTRACT

                                 No. 2820-4377

SANCTOR Grundstucks-Vermietungsgesellschaft mbH & Co.
Object TTHFT KG

_________________________________________________________________________

- Lessor -


TEMIC TELEFUNKEN Hochfrequenztechnik GmbH, 85098 GroBmehring

_________________________________________________________________________

 . Lessee -


I.   Leased Property
     ---------------

     Administrative building

_________________________________________________________________________

     With a fractional tract of land still to be surveyed:


     Land Register Description
     Land Register of the Local Court Ingolstadt             for mailing
     Folio 74                                                Page 3098
     Lot  375                                                Plot
     Size                                                    approx. 5,974 m/2/

II.  Total Lease Term:                               22 years
     ----------------

     Expected commencement of the total lease term on:       1 January 2000

III. Payments of the Lessee:
     ----------------------

     Basis of calculation for the payments of the Lessee pursuant to No. 1, 3
     and 5 are the Total Investment Costs (TIC)
<PAGE>

     of presumably DM 7,000,00.00

     of this
     Land             DM 1,732,460.00
     Building         DM 5,167,540.00 depreciation for wear and tear (AfA) 4.00
                      % p.a.
     Other            DM  100,000.00  depreciation for wear and tear(AfA) 4.54
                      % p.a.

     Presumed contractual
     remaining value at the end of the total lease term:    DM 2,352,564.80


1.   Payment upon Conclusion of Contract:      - not applicable -

2.   Payments prior to commencement of the total lease term:

     a)   Advance rent payment          open pursuant to Supplementary Agreement
                                        No. 1

     b)   Appropriation charge          open pursuant to Supplementary Agreement
                                        No. 1

3.   Payments after commencement of the total lease term:

     Rent                               open pursuant to Supplementary Agreement
                                        No. 1

4.   Adjustment of rent due to conversion
     of interest (conversion date) on:  open pursuant to Supplementary Agreement
                                        No. 1

5.   Share in management costs          0.32% p.a.


6.  Ancillary Leasing Costs:

    The Lessee reimburses the Lessor for documented ancillary leasing costs
    pursuant to (S) 4 of the Leasing Conditions

7.  Value Added Tax:

    The respectively applicable statutory value added tax shall be paid in
    addition to payment upon conclusion of contract, to payments prior to
    commencement of the
<PAGE>

    total lease term, rent payments, share in management costs and to ancillary
    leasing costs if the Lessor does not exercise the opportunity to waive tax
    exemption pursuant to Section 9 Turnover Tax Act (UstG) - in whole or in
    part - (VAT Option).

8.  VAT-free Leasing:

    Insofar as the Lessor is not entitled to input tax deduction due to VAT-free
    leasing, in addition to the share in management costs and ancillary leasing
    costs pursuant to the no. 5 and 6 above, the Lessee shall reimburse the
    Lessor an additional charge in the amount of the statutory VAT.

IV. Rent Payment Account of the Lessor:    Account no. 206 300 630
    ----------------------------------
                                           Deutsche Bank AG, Dusseldorf
                                           Bank Code No. 300 700 10

V.  Account No. Of the Lessee (for direct debiting system):  - to be provided
    ------------------------------------------------------
    later -

VI. Supplementary Agreements:
    ------------------------

    Supplementary Agreement No. 1 "Open Conditions"

VII.  Provision of Documents:
      ----------------------

      Lessee is obligated to provide the following documents:

      Evidence pursuant to (S) 2 no. 8
<PAGE>

                              LEASING CONDITIONS

                                     (S) 1

                     Commencement of the Total Lease Term

The total lease term commences when the Lessee takes over the Leased Property.
The take-over, which will be documented in a protocol, shall take place upon
completion of the Leased Property and/or upon its purchase by the Lessor. The
Lessor does not guarantee for compliance with the expected time of take-over
stated in No. II above. The Lessee is not entitled to refuse to take over the
Leased Property due to insignificant defects (in accordance with Section 12 no.
3 Standard Official Contracting Terms (VOB) Part B).


                                     (S) 2

                            Payments of the Lessee

1.  Payment upon conclusion of contract

    - not applicable -

2.  Payments prior to commencement of the total lease term

    a)    Advance rent payment:

          The advance rent payment is the payment for investment funds paid by
          the Lessor.  Until the input tax is refunded by the tax office,
          interest at a rate of 5% p.a. above the respective discount rate of
          the German Federal Bank shall be paid by the Lessee on VAT paid by the
          Lessor and to be claimed as input tax vis-a-vis the tax office.  This
          also applies to VAT on investment funds which the Lessor does not pay
          out until after commencement of the total lease term.

     b)   Appropriation Charge

          The appropriation charge is the charge for investment funds which have
          been appropriated by the Lessor but not yet paid out.
<PAGE>

          These payments shall be calculated on a monthly basis according to the
          balance as of the end of the respective month of the investment funds
          paid out (advance rent payment) and/or investment funds not yet paid
          out (appropriation charge).

3.   Payments after commencement of the total lease term

     a)  Rent payments shall be calculated on the basis of the final total
         investment costs ((S) 3)

     b)  - not applicable -

4.   Adjustments

     As of each agreed conversion date, the Lessor is entitled and obligated to
     adjust the rent payments for the next fixed-rate period using the same
     method of calculation and taking into consideration the repayments
     contained in the rent payments up to that point in time, the remaining time
     of the respective rent period and the interest rate which must be agreed
     with the Lessee in a timely manner prior to the conversion date. If the
     Lessor and the Lessee cannot agree on the interest rate, the Lessee is
     entitled and obligated to raise a substitute loan. The nominal interest
     rate of such loan must, however, be at least 0.1% less than the loan
     proposed by the Lessor. Additionally, the substitute loan raised by the
     Lessee must correspond to the other terms of financing up to now. As long
     as an agreement regarding the interest rate is not reached, the Lessor
     shall take the respective interest rate for current accounts credits of the
     present financing bank as a basis for the calculation of rent payments. The
     costs for possible debt refinancing shall be borne by the Lessee.

5.   Share in Management Costs

     The share in management costs to be paid as of conclusion of the Contract
     shall be increased annually by 2% of the amount of the previous year.

6.   Ancillary Leasing Costs

     The Lessee shall reimburse the Lessor for documented ancillary leasing
     costs listed in (S) 4.
<PAGE>

7.   Depreciation

     The rent underlies the depreciation rates defined in no. III. In the event
     of a change to the depreciation rates becoming necessary as a result of a
     change in the useful life (depreciation period), the rent shall be adjusted
     accordingly. This also applies to any change in the basis for depreciation
     which should become necessary.

8.   Input Tax Deduction

     To the extent permissible by law, the Lessor shall waive exemption from VAT
     pursuant to Section 9 Turnover Tax Act (in the binding version of the Tax
     Abuse Correction Act (StMBG)) for the leasing of the Leased Property and/or
     of independent parts of the building of the Leased Property.

     To this extent, the Lessee is obligated to use the Leased Property and/or
     independent parts of the building exclusively or nearly exclusively (at
     least 95%) for activities which do not exclude input tax deduction.  Should
     the Lessee intend to deviate from this type of use, the Lessee shall
     immediately inform the Lessor of this and is obligated to reimburse the
     Lessor for any tax disadvantages arising from this.

     The Lessee shall enable the Lessor to comply with its statutory obligations
     to provide evidence by providing suitable documents for this purpose.

     Should the Lessor be required to repay refunded input tax because the
     prerequisites of Section 9 para. 2 Turnover Tax Act are not or are no
     longer fulfilled, it is intended to include the input tax repayment of the
     Lessor in the TIC and to increase this accordingly;  however, this action
     will only be taken insofar as the refinancing of the Lessor is secured and
     its supervisory bodies have approved the increase of the TIC.  Otherwise
     the amounts of input tax repayment levied against the Lessor shall be
     billed to the Lessee as advance rent payments being immediately due for
     payment.

     Input tax refunds to the Lessor due to change in use within the meaning of
     Section 9 para. 2 Turnover Tax Act shall be passed on to the Lessee within
     the scope of a rent refund.  The Lessor reserves the right of set-off
     against future rent due.

     Reciprocal claims based on the aforementioned agreements are barred under
     the statute of limitations six months after the date on which the
     limitation according to the respective provisions of the Tax Code
     (Abgabenordnung) has occurred.
<PAGE>

                                     (S) 3

                             Basis for Calculation
                         of the Payments of the Lessee
                          Total Investment Costs (TIC)

1.   The basis for calculation of the payments of the Lessee pursuant to (S) 2
     no. 1, 3 and 5 are all expenses which the Lessor incurs through the
     purchase of the real estate and the acquisition and/or erection of the
     Leased Property, meaning inter alia:

     The purchase price including ancillary costs of purchase (such as costs of
     notarisation) and/or building costs including public charges as well as
     costs billed by third parties to the Lessor for evaluation and loans.  Also
     included in the expenses are the property acquisition tax and development
     costs irrespective of when they were incurred, and also those costs which
     are not billed to the Lessor until after the Leased Property is taken over
     pursuant to (S) 1 and/or following determination of the TIC pursuant to no.
     2 below.  TIC does not include the VAT on the TIC paid by the Lessor for
     that portion of investment funds for which the Lessor has exercised the
     VAT-option.

2.   The TIC shall be determined jointly by the parties after receipt of all
     invoices.  The payments of the Lessee pursuant to (S) 2 no. 1, 3, and 5 and
     the contractual remainder according to No. III. shall be brought into line
     with the determined TIC.

3.   In the event of the anticipated TIC being exceeded, the Lessor can demand
     that the Lessee deem the missing amounts to be lost subsidies up to a
     maximum amount of 10% of the anticipated TIC.  Should the anticipated TIC
     not be reached, then the Lessee must reimburse the Lessor for costs which
     the Lessor incurs due to not using investment funds which were appropriated
     but not paid out.


                                     (S) 4

                            Ancillary Leasing Costs

Ancillary leasing costs include all incidental costs not be capitalised which
are incurred for the Leased Property as of conclusion of the Contract, inter
alia:

1.   costs for concluded insurance policies ((S) 9);
<PAGE>

2.   ongoing performance of obligations from a real estate purchase contract
     concluded by the Lessor;

3.   all taxes, charges, contributions and  fees in connection with the Leased
     Property, as well as other burdens and obligations of all types relating to
     the Leased Property, in particular, property tax, waste disposal, street
     cleaning, canal cleaning and chimneysweep, also when these are newly
     implemented during the time period of the lease;

4.   trade tax which possibly becomes due for the Lessor and/or its shareholders
     or the respective parent company as well as wealth tax possibly becoming
     due and corporation tax being levied thereon;

     In the case of taxes due on shareholder level, this only applies for cases
     where, due to its participation, Deutsche Immobilien Leasing GmbH
     Dusseldorf or one of its affiliated companies is additionally burdened with
     the aforementioned taxes;

     Ancillary costs also include taxes and charges which may be newly
     implemented as well as ancillary tax payments arising from interest
     payments being levied on the aforementioned taxes;

5.   Miscellaneous costs which are incurred by the Lessor in its capacity as
     Property Company, e.g., costs of foundation, costs for necessary amendments
     to the Articles of Association, annual auditing costs, IHK dues, etc.


                                     (S) 5

                                Terms of Payment

1.   Payments of the Lessee are basically to be made irrespective of the
     condition and suitability for use of the Leased Property.  In the event
     that the Leased Property has defects or is not able to be used, the Lessee
     is also not entitled to reduce payments in whole or in part, to withhold
     payments or to set off against these payments, unless these are undisputed
     claims or claims which have been determined by a final decision.  The
     Lessee can demand reduction of its payment obligations in the event of
     accidental loss of the Leased Property, in whole or in part, or whole or
     partial destruction for which the Lessee is not responsible, or if the use
     of the Leased
<PAGE>

     Property is precluded for a long period of time for reasons for which the
     Lessee is not responsible.

2.   Payments of rent and the share in management costs are due pro rata monthly
     in advance on the third calendar day of the respective month (credit of the
     value to the rent receipt account of the Lessor).  Ancillary costs and
     advance rent payments and appropriation charges are due for payment 14 days
     after date of invoice.

3.   Should the Lessee not comply with the agreed payment dates, then,
     notwithstanding a further loss incurred due to default in payment, the
     Lessor is entitled to demand default interest of 5% above the discount rate
     of the German Federal Bank on the arrears, unless the Lessee provides
     evidence that the loss was not suffered or was of a lower amount.

4.   The Lessee authorises the Lessor to collect payments due by direct debiting
     to the Lessee's account stated in no. V.

5.   Should payments of the Lessee not be sufficient to fully cover all its
     obligations vis-a-vis the Lessor, the Lessor can decide for which purpose
     and in which sequence the payments are to be used.


                                     (S) 6

                             Execution of Contract

The Lessor shall provide the Lessee the contracts to be concluded by the Lessor
and which are in connection with the procurement and erection of the Leased
Property for the Lessee's approval.  By way of approval, the Lessee accepts that
the Lessor will fulfil all payment obligations which result from these contracts
and their execution to the account of the TIC pursuant to (S) 3 or the ancillary
leasing costs pursuant to (S) 4.
<PAGE>

                                     (S) 7

                             Liability, Maintenance
                           Repair and Bearing of Risk

1.   The Lessee shall, at its cost, maintain the Leased Property in good and
     always functional condition for use in conformance with the contract. Costs
     for operation, maintenance and upkeep as well as all repairs including
     interior decoration shall be borne by the Lessee. In the event of
     destruction of the Leased Property, in whole or in part, the Lessee is also
     obligated to restore and/or rebuild the Leased Property at its expense
     unless the Lessee is not responsible for the whole or partial destruction.
     The risk of accidental whole or partial loss of the Leased Property shall
     be borne by the Lessor.

     After unsuccessful reminders, the Lessor is entitled to have necessary
     repairs carried out at the expense of the Lessee.

     Compensation payments by third parties (insurance companies, damaging
     parties, etc.) shall be reimbursed to the Lessee in an amount which the
     Lessee has expended for work carried out in connection with the damage
     incurred or which shall be expended for work still to be carried out.

2.   The Lessee assumes the full duty to maintain safety for the Leased Property
     and its components and indemnifies the Lessor for all claims of third
     parties in this regard.

3.   The Lessee shall comply with all statutory and public regulations and
     requirements.  The Lessee shall also fulfil all obligations which the
     Lessor would encounter in its capacity as owner, such as for example, the
     obligations from a liability for condition of the property.  In this
     regard, the Lessee indemnifies the Lessor for all claims of third parties
     including state institutions which occur during the time the Lessee has
     possession of the Leased Property or during the term of the Contract -
     beginning with conclusion of the Contract - in connection with the
     planning, erection, possession and use of the Leased Property.  This
     indemnification also applies in particular to claims in connection with the
     avoidance or removal of substances endangering the environment.  All costs
     for facilities and installations which become necessary due to statutory
     regulations or public requirements shall be borne by the Lessee.  Any
     amounts paid by the Lessor due to such demands shall be reimbursed without
     delay by the Lessee upon the provision of evidence.
<PAGE>

     A claim against the Lessee to indemnification of the Lessor does not exist
     if the circumstances of the claim of a third party were not caused by the
     Lessee.  The indemnification claims of the Lessor in the event of an
     extraordinary termination before the Leasing Property is taken over are
     provided for in (S) 11 no. 5.


                                     (S) 8

                                    Warranty

1.   The Lessee cannot enforce claims against the Lessor due to defects or due
     to limitation of use of the Leased Property unless the Lessor has caused
     this with intent and gross negligence or another clause of this Contract
     provides otherwise.

2.   Herewith, the Lessor assigns to the Lessee the warranty claims against
     third parties to which the Lessor is entitled as well as claims from
     positive breach of contract. The Lessee accepts the assignment and is
     obligated to enforce the claims without delay at its expense; in case of
     emergency, the Lessor shall file a law suit in a timely manner and take the
     necessary enforcement measures.

     Should the assigned warranty claims prove to be without value for reasons
     for which the Lessee is not responsible, the warranty claims of the Lessee
     vis-a-vis the Lessor shall be revived.

3.   The Lessee shall demand payment be made to the Lessor and shall keep the
     Lessor informed on the progress of the proceedings.

     The Lessor is obligated at its discretion to use the payments it has
     received from warranty claims and positive breach of contract either to
     restore the Leased Property or to newly determine the payments of the
     Lessee.


                                     (S) 9

                                   Insurance

1.   In co-ordination with the Lessee, the Lessor shall take out the following
     insurance:
<PAGE>

     a)  "All Risk" insurance against unnamed risks in an amount of the new
         value with an additional value clause and/or of a sliding-scale new
         value. Clean up, demolition and fire extinguishing costs shall also be
         covered by the insurance. To the extent necessary, the Lessor reserves
         the right in co-ordination with the Lessee to insure further areas of
         cost.

     b)  House and property owner liability insurance including water damage
         liability insurance to the extent necessary according to type of
         operation.

     The costs shall be billed to the Lessee by the Lessor as ancillary leasing
     costs pursuant to (S) 4 no. 1.

2.   The Lessee shall notify the Lessor without delay of any missing or
     insufficient insurance coverage. A notification obligation also exists in
     particular when carrying out the installation of interior fittings and when
     undertaking constructional modifications or changes of use. Such measures
     must be notified to the Lessor prior to their execution.

     The Lessee undertakes to observe the regulations of statute and the police.
     In addition, the Lessee undertakes to observe safety regulations and the
     requirements of the insurance company which is a party to the insurance
     contract;  the basis for this is the respective valid insurance contract.

3.   The Lessee shall notify the Lessor without delay of a damage claim and
     shall ensure that the location of the damage remains unchanged until it has
     been inspected by the insurance company.  This does not affect measures
     which are necessary to minimise the damage or to avoid any further damage.
     On its own behalf and for its own account the Lessee instructs specialised
     companies to take the necessary safety measures and subsequently to remove
     the damage.  After examination and payment, the Lessee shall submit the
     invoice to the Lessor who shall submit this invoice to the insurance
     company.

4.   The Lessor is obligated to use the full amount of compensation received
     from the insurance company for the restoration of the Leased Property or at
     the Lessor's discretion to make this amount available to the Lessee for
     this purpose.  The additional costs in addition to the insurance payment
     still required to fully restore the Leased Property as well as any costs
     for expert opinions shall be born by the Lessee unless the Lessee is not
     responsible for the whole or partial destruction of the Leased Property.
<PAGE>

     The Lessee is not entitled to a right to repossess or a claim to
     compensation in respect of the additional expenses.


                                     (S) 10

                           Fittings and Modifications

1.   Fittings and modifications - also changes in type of use - are permissible
     without the consent of the Lessor if they do not affect the value and the
     functioning of the Leased Property and all required approvals under public
     law are on hand prior to execution.  In all other cases, the prior written
     consent of the Lessor shall be obtained.  The consent can only be refused
     for important reason.

2.   In order to maintain insurance coverage, the Lessee shall notify the Lessor
     of such fittings and modifications to the Leased Property which are
     permissible without the consent of the Lessor.

3.   The Lessee shall notify the Lessor without delay in the event the Lessee
     vacates the Leased Property prematurely or changes the type of use.

4.   The Lessor shall not make any reimbursement for fittings, expansions or
     reconstruction measures, also when they become major components of the
     Leased Property.  The Lessee has the right to repossess fittings provided
     that the Lessee restores the Leased Property to its original condition.


                                     (S) 11

                     Premature Termination of the Contract

1.   This Contract basically cannot be terminated.

2.   However, each party has the right to terminate the Contract without notice
     for important reason.  In particular, an important reason is if

     a)  the purchase or the construction of the Leased Property finally does
         not take place for reasons for which the terminating party is not
         responsible;
<PAGE>

     b)  the other party discontinues its payments, or settlement or bankruptcy
         proceedings are commenced against the assets of the other party, or the
         commencement is refused for insufficiency of assets, or other court or
         out of court procedures for the settlement of debts are initiated;

     c)  a substantial impairment of the basis for liability of the other party
         as against the situation at the time of conclusion of the Contract has
         occurred and the entitlements of the terminating party are endangered
         by this;

     d)  the other party does not comply with major contractual obligations
         within two months despite written reminder of the contracting partner
         or does not remedy substantial consequences of the breach of contract
         without delay.


3.   In addition to this, the Lessor has the right to termination without notice
     if

     a)  the Lessee is in arrears with payment obligations under this Contract
         of more than two rent payments for a period of more than two months,
         despite written reminder of the Lessor;

     b)  the conditions under no. 2 b) and c) exist for a third party that has
         taken the responsibility for the obligations of the Lessee as
         guarantor, joint debtor or in another manner.

4.   The Lessor is obligated to withdraw the extraordinary termination and to
     continue the Contract on the same conditions if the Lessee fulfils the
     payment obligations in arrears within a time limit of six weeks after
     receipt of the termination or provides adequate collateral. The same
     applies if the Lessee fulfils its other main contractual obligations
     without delay and eliminates the main consequences of the breach of
     contract within a time limit of six weeks after receipt of the termination.
     The Lessor shall inform the Lessee of this regulation in the event of
     extraordinary termination.

5.   Should the Contract be terminated without notice before the Leased Property
     is taken over for reasons for which the Lessee is responsible, the Lessee
     shall reimburse the Lessor for investment costs incurred or which will be
     incurred in the execution of this Contract.  To the extent that the Lessor
     incurs necessary one-time or continuing expenses, e.g., from the property,
     the Lessee shall also reimburse these costs.  Furthermore, the Lessee also
     reimburses the Lessor, following provision of evidence, for costs resulting
     from the investment funds, which have
<PAGE>

     been appropriated by the Lessor, not being utilised. The Lessor can require
     the Lessee to enter into all contracts concluded with third parties in
     fulfilment of this Contract in place of the Lessor and indemnifies the
     Lessor for all obligations in connection with the contract.

     Additionally, for own costs of the Lessor in connection with the premature
     termination, the Lessee shall pay the Lessor a share in management cost of
     2% of the anticipated TIC defined under No. III.  Any payment made upon
     conclusion of contract shall be credited against this.

     Should the Lessor have entered into obligations pursuant to (S) 6 in
     connection with the leasing commitment at the express wish and in co-
     ordination with the Lessee, the Lessee shall be subject to the
     aforementioned obligations to reimbursement and/or indemnification also
     then when neither the Lessee nor the Lessor is responsible for the
     termination.

6.   Should the Contract be terminated after the Leased Property has been taken
     over for reasons for which the Lessee is responsible, the Lessee is
     obligated to reimburse the Lessor until expiration of the total lease term
     for damage which it incurs due to the premature termination of the
     Contract, in particular because the Lessor cannot lease or exploit the
     Leased Property or only on conditions which are less favourable. Benefits
     which the Lessor receives from a lease or exploitation of the Leased
     Property shall be credited against the damage claim of the Lessor.

7.   Lost subsidies ((S) 3) shall not be reimbursed either in the event of
     premature termination or of regular termination of this Contract.

8.   The statutory termination right upon the death of the Lessee pursuant to
     Section 569 German Civil Code (BGB) is excluded.


                                     (S) 12

                                 Miscellaneous

1.   Sub-leasing, assignment of claims from sub-lease relationships

     Sub-leasing is permitted with the prior consent of the Lessor; the Lessor
     can only object to sub-leasing for important reason. The statutory right to
     termination
<PAGE>

     pursuant to Section 549 para. 1 sentence 2 German Civil Code is excluded.
     In order to provide collateral for all claims of the Lessor from this
     Contract, already now, the Lessee herewith assigns its present and future
     claims from sub-lease relationships (also rights to alter a legal
     relationship as well as the right to terminate the sub-lease relationship
     and also the landlord's lien) to the Lessor. The Lessor accepts the
     assignment and is entitled to reveal such.

2.   Disposition/Assignment

     The Lessee shall only assign the claims and rights from this Contract to
     third parties with prior consent of the Lessor.

3.   Right to Inspection

     Following prior co-ordination with the Lessee, the Lessor has the right to
     inspect the Leased Property or to have such inspection conducted by
     authorised parties during normal business hours.

4.   Obligation of Operation

     The Lessee is obligated to maintain business operations in the Leased
     Property during the term of the Contract which are appropriate to the
     Leased Property.

5.   Return of the Leased Property

     Upon termination of this Contract, the Leased Property shall be returned to
     the Lessor in a condition ready for occupancy and - insofar as the Lessee
     is responsible for any environmental pollution - free from any substances
     endangering the environment.

6.   Disclosure of Information

     The Lessee shall submit its annual accounts as well as business and/or
     audit report to the Lessor annually.  Major changes in the Lessee's
     property, economic and business situation shall be notified to the Lessor
     without request and in a timely manner.
<PAGE>

7.   Legal Successor

     The Lessor and the Lessee are obligated to transfer their obligations from
     this Contract to any contingent legal successor.

8.   Amendments to the Contract and Additional Agreements

     Amendments to the Contract and additional agreements must be in writing.
     Oral agreements require written confirmation.

9.   Validity

     Should one or several provisions of this Contract be or become invalid, all
     the remaining provisions shall remain valid.  The contracting parties are
     obligated to provide analogous amendments to the Contract.

10.  Disposition over Investment Funds

     The Lessor cannot dispose over the appropriated investment funds until the
     transfer of ownership for the land required for the Leased Property free of
     encumbrances to the Lessor has been secured, the encumbrance of the land in
     favour of the financing bank in the proper priority ranking has been
     documented and the documents described in No. VI. and VII. have been
     received by the Lessor.  If payments must be made prior to the Lessor
     having disposal over the investment funds, the Lessor shall advance the
     funds.

11.  Priority Ranking

     - not applicable -

12.  Offer of the Lessee

     The Lessee makes an offer to the Lessor to conclude the aforementioned
     Property Leasing Contract.  The leasing offer of the Lessee shall be
     binding for six weeks following receipt by the Lessor.


Dusseldorf, 29 December 1998              GroBmehring, 17 December 1998
<PAGE>

SANCTOR Grundstucks-Vermietungs-        TEMIC TELEFUNKEN
gesellschaft mbH & Co.                  Hochfrequenztechnik GmbH
Objekt TTHFT KG                         KriegsstraBe
                                        D-85098 GroBmehring

[signature]                             [signature]
[Illegible]                              /s/ Martin Englmeier
-------------------------               -------------------------
Lessor                                  Lessee
<PAGE>

                               Supplement No. 1

                           PROPERTY LEASING CONTRACT

                                 No. 2820-4377

SANCTOR Grundstucks-Vermietungsgesellschaft mbH & Co.
Object TTHFT KG

_________________________________________________________________________

- Lessor -




TEMIC TELEFUNKEN Hochfrequenztechnik GmbH, 85098 GroBmehring

_________________________________________________________________________

- Lessee -


I.   Leased Property
     ---------------

     Administrative building
_________________________________________________________________________

     With a fractional tract of land still to be surveyed:

     Land Register Description
     Land Register of the Local Court Ingolstadt              for mailing
     Folio 74                                                 Page 3098
     Lot  375                                                 Plot
     Size                                                     approx. 5,974 m/2/


II.  Total Lease Term:                                        22 years
     ----------------

     Expected commencement of the total lease term on:        1 January 2000
<PAGE>

III. Payments of the Lessee:
     ----------------------

     Basis of calculation for the payments of the Lessee pursuant to No. 1, 3
     and 5 are the Total Investment Costs (TIC)

     of presumably DM 7,000,00.00


     of this
     Land            DM 1,732,460.00
     Building        DM 5,167,540.00   depreciation for wear and tear (AfA) 4.00
                                       % p.a.
     Other           DM  100,000.00    depreciation for wear and tear(AfA) 4.54
                                       % p.a.

     Presumed contractual
     remaining value at the end of the total lease term:  DM 2,352,564.80

1.   Payment upon Conclusion of Contract:           - not applicable -

2.   Payments prior to commencement of the total lease term:


     a)  Advance rent payment
         for partial Total Investment Costs of
         DM 4,750,000.00 (KfW funds) as of
         date of payment until 30 June 1999               DM 17,614.58 per month

         for partial Total Investment Costs of
         DM 4,750,000.00 (KfW funds)
         from 1 July 1999 to 31 December 1999             DM 30,227.68 per month

         for partial Total Investment Costs of
         DM 2,250,000.00                                  DM 9,187.50 per month


     b)  Appropriation charge for
         partial Total Investment Costs of
         DM 4,750,000.00 (KfW funds)                      0.25% per month as of
                                                          13 March 1999
<PAGE>

3.   Payments after commencement of the total lease term:

     Rent:

     For partial Total Investment Costs of
     DM 4,750,000.00 (KfW funds)
     from 1 January 2000 to 31 December 2018:    DM 30,227.68 per month
     from 1 January 2019 to 31 December 2019:    DM 30,227.67 per month

     For partial Total Investment Costs of
     DM 2,250,000.00:                            DM 9,187.50 per month

4.   Adjustment of rent due to conversion
     of interest (conversion date):

     for partial Total Investment Costs of
     DM 4,750,000.00 (KfW funds) on:             30 June 2009

     for partial Total Investment Costs of
     DM 2,250,000.00 on:                         31 December 2008

5.   Share in management costs

     for partial Total Investment Costs of
     DM 4,750,000.00 (KfW funds)                 - not applicable -

     for partial Total Investment Costs of
     DM 2,250,000.00:                            1.0% p.a.

6.   Ancillary Leasing Costs:

     The Lessee reimburses the Lessor for documented ancillary leasing costs
     pursuant to (S) 4 of the Leasing Conditions

7.   Value Added Tax:

     The respectively applicable statutory value added tax shall be paid in
     addition to payment upon conclusion of contract, to payments prior to
     commencement of the total lease term, rent payments, share in management
     costs and to ancillary leasing
<PAGE>

     costs if the Lessor does not exercise the opportunity to waive tax
     exemption pursuant to Section 9 Turnover Tax Act (UstG)- in whole or in
     part - (VAT Option).

8.   VAT-free Leasing:

     Insofar as the Lessor is not entitled to input tax deduction due to VAT-
     free leasing, in addition to the share in management costs and ancillary
     leasing costs pursuant to no. 5 and 6 above, the Lessee shall reimburse the
     Lessor an additional charge in the amount of the statutory VAT.

IV.  Rent Payment Account of the Lessor:    Account no. 206 300 630
     ----------------------------------
                                            Deutsche Bank AG, Dusseldorf
                                            Bank Code No. 300 700 10

V.   Account No. Of the Lessee (for direct debiting system):  - to be provided
     ------------------------------------------------------
     later -

VI.  Supplementary Agreements:
     ------------------------

     Supplementary Agreement No. 1 "Open Conditions"

VII. Provision of Documents:
     ----------------------

     Lessee is obligated to provide the following documents:

     Evidence pursuant to (S) 2 no. 8