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                                                                   Exhibit 10.16

            STANDARD INDUSTRIAL/COMMERCIAL MULTI-TENANT LEASE--GROSS
                   AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION

                                   (AIR LOGO)

1. BASIC PROVISIONS ("BASIC PROVISIONS").

     1.1 PARTIES: This Lease ("LEASE"). dated for reference purposes only. July
19, 2000 is made by and between MHW Realty, Ltd, a California Limited
Partnership ("LESSOR") and C & C Vision, a Delaware 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 10574 Acacia Street, Suite D-1, located
in the City of Rancho Cucamonga County of San Bernardino, State of CA, with zip
code 91730, 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): 3,440 sq.ft. within
the "D" building ("Building") at Haven Executive Park consisting of
approximately 78,122 sq.ft. as illustrated on Exhibit "A". 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: Nine(9) unreserved vehicle parking spaces ("UNRESERVED
PARKING SPACES"); and 0 reserved vehicle parking spaces ("RESERVED PARKING
SPACES"). (Also see Paragraph 2.6.)

     1.3 TERM: Three years and 0 months ("ORIGINAL TERM") commencing August 15,
2000 or upon substantial completion of the Improvements whichever is later.
("COMMENCEMENT DATE") and ending 36 months from the Commencement Date
("EXPIRATION DATE"). (Also see Paragraph 3.)

     1.4 EARLY POSSESSION: Upon Full Execution ("EARLY POSSESSION DATE"). (Also
see Paragraphs 3.2 and 3.3.)

     1.5 BASE RENT: $3,027.00 per month ("BASE RENT"), payable on the First day
of each month commencing August 15, 2000 (Also see Paragraph 4.)

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

     1.6(a) BASE RENT PAID UPON EXECUTION: $6,054.00 as Base Rent for the period
first months and last months rent.

     1.6(b) LESSEE'S SHARE OF COMMON AREA OPERATING EXPENSES: Four and 4/10
percent (4.4%) ("LESSEE'S SHARE") as determined by

[ ]  prorata square footage of the Premises as compared to the total square
     footage of the Building or [ ] other criteria as described in Addendum
     __________.

     1.7 SECURITY DEPOSIT: $3,027.00 ("SECURITY DEPOSIT"). (Also see
Paragraph 5.)

     1.8 PERMITTED USE: Research, design and engineering of optical devices
("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):

[ ]  CB Richard Ellis represents Lessor exclusively ("LESSOR'S BROKER");

[ ]  Del Mar Commercial Services represents Lessee exclusively
     ("LESSEE'S BROKER"); or

[ ]  ___________________________ 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 __________________________________________________________________
("GUARANTOR"). (Also see Paragraph 37.)

     1.12 ADDENDA AND EXHIBITS. Attached hereto is an Addendum or Addenda
consisting of Paragraphs 49 through 66, and Exhibits "A" through "C" all of
which constitute a part of this Lease.

2. PREMISES, PARKING AND COMMON AREAS.

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

     2.2 CONDITION. Lessor shall deliver the Premises to Lessee clean and free
of debris on the Commencement Date and warrants to Lessee that the existing
plumbing, electrical systems, fire sprinkler system, lighting, air conditioning
and heating systems and loading doors. If any, in the Premises, other than those
constructed by Lessee, shall be in good operating condition on the Commencement
Date. If a non-compliance with said warranty exists as of the Commencement Date,
Lessor shall, except as otherwise provided in this Lease, promptly after receipt
of written notice from Lessee setting forth with 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
thirty (30) days after the Commencement Date, correction of that non-compliance
shall be the obligation of Lessee at Lessee's sole cost and expense.

     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 Commencement 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 Lessor or 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.

     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.


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

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

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

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

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

     2.8 COMMON AREAS--LESSEE'S RIGHTS. Lessor hereby grants to Lessee, for the
benefit of Lessee and its employees, suppliers, shippers, contractors, customers
and invitees, during the term of this Lease, the 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 any property, temporarily or permanently, in the Common Areas.
Any such storage shall be permitted only by the prior written consent of Lessor
or Lessor's designated agent, which consent may be revoked at any time. In the
event that any unauthorized storage shall occur then Lessor shall have the
right, without notice. In addition to such other rights and remedies that it may
have, to remove the property and charge the cost to Lessee, which cost shall be
immediately payable upon demand by Lessor.

     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.

     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) 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.

3. TERM.

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

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

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

4. RENT.

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

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

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

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

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

                    (bb) Exterior signs and any tenant directories.

                    (cc) Fire detection and sprinkler systems.

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

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

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

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

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

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

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

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

          (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 of 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 within ten (10) days after a reasonably detailed statement of actual
expenses is presented to Lessee by Lessor. At Lessor's option, however, an
amount may be estimated by Lessor from time to time of Lessee's Share of annual
Common Area Operating Expenses and the same shall be payable monthly or
quarterly, as Lessor shall designate, during each 12-month period of the Lease
term, on the same day as the Base Rent is due hereunder. 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 over-


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payment against Lessee's Share of Common Area Operating Expenses next becoming
due. If Lessee's payments under this Paragraph 4.2(d) during said preceding
year were less than Lessee's Share as indicated on said statement. Lessee shall
pay to Lessor the amount of the deficiency within ten (10) days after delivery
by Lessor to Lessee of said statement.

5. SECURITY DEPOSIT. Lessee shall deposit with Lessor upon 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. Any time the Base Rent increases during the
term of this Lease, Lessee shall, upon written request from Lessor, deposit
additional monies with Lessor as an addition to the Security Deposit so that the
total amount of the Security Deposit shall at all times bear the same proportion
to the then current Base Rent as the initial Security Deposit bears to the
initial Base Rent set forth in Paragraph 1.5. Lessor shall not be required to
keep all or any part of the Security Deposit separate from its general
accounts. Lessor shall, at the expiration or earlier termination of the term
hereof and after Lessee has vacated the Premises, return to Lessee (or, at
Lessor's option, to the last assignee, if any, of Lessee's interest herein),
that portion of the Security Deposit not used or applied by Lessor. Unless
otherwise expressly agreed in writing by Lessor, no part of the Security Deposit
shall be considered to be held in trust, to bear interest or other increment for
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, 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
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 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: (i) potentially injurious to the public health, safety or welfare, the
environment, or the Premises; (ii) regulated or monitored by any governmental
authority; or (iii) a basis for potential liability of Lessor to any
governmental agency or third party under any applicable statute or common law
theory. Hazardous 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 Lease expiration
or earlier termination) of reasonably necessary protective modifications to the
Premises (such as concrete encasements) and/or the deposit of an additional
Security Deposit under Paragraph 5 hereof.

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

          (c) INDEMNIFICATION. Lessee shall indemnity, 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 attorneys' and
consultants, fees arising out of or involving any Hazardous Substance brought
onto the Premises by or for Lessee or by anyone under Lessee's control. 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 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, directives, covenants, easements and
restrictions of record, permits, the requirements of any applicable fire
insurance underwriter or rating bureau, and the recommendations of Lessor's
engineers and/or consultants, relating in any manner to the Premises (including
but not limited to matters pertaining to (i) Industrial hygiene, (ii)
environmental conditions on, in, under or about the Premises, including soil and
groundwater conditions, and (iii) the use, generation, manufacture, production,
installation, maintenance, removal, transportation, storage, spill, or release
of any Hazardous Substance), 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, legislations, manifests, applications, reports and
certificates, evidencing Lessee's compliance with any Applicable Requirements
specified by Lessor, and shall immediately upon receipt, notify Lessor in
writing (with copies of any documents involved) of any threatened or actual
claim, notice, citation, warning, complaint or report pertaining to or involving
failure by Lessee or the Premises to comply with any Applicable Requirements.

     6.4 INSPECTION; COMPLIANCE WITH LAW. Lessor, Lessor's agents, employees,
contractors and designated representatives, and the holders of any mortgages,
deeds of trust or ground leases on the Premises ("Lenders") shall have the right
to enter the Premises at any time in the case of an emergency, and other wise at
reasonable times, 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.

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, healing, 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.

          (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 ventilation 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 Lessees, 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, subject to reimbursement
pursuant to Paragraph 4.2, shall keep in good order, condition and repair the
foundations, exterior walls, structural condition of Interior bearing walls,
exterior roof, fire sprinkler and/or standpipe and hose (if located in the
Common Areas) or other automatic fire extinguishing system including fire alarm
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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 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 Installation" 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. 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 the cumulative
cost thereof during the term of this Lease as extended 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 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 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.

          (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 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 obligation of Lessee
shall include the repair of any damage occasioned by the Installation,
maintenance or 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 and restore the Premises per this
Lease.

8. INSURANCE; INDEMNITY.

     8.1 PAYMENT OF PREMIUM INCREASES.

          (a) As used herein, the term "INSURANCE COST INCREASE" is defined as
any increase in the actual cost of the insurance applicable to the Building and
required to be carried by Lessor pursuant to Paragraphs 8.2(b), 8.3(a) and
8.3(b), ("REQUIRED INSURANCE"), over and above the Base Premium, as hereinafter
defined, calculated on an annual basis. "Insurance Cost Increase" shall include,
but not be limited to, requirements of the holder of a mortgage or deed of trust
covering the Premises, increased valuation of the Premises, and/or a general
premium rate Increase. The term "Insurance Cost Increase" shall not, however,
include any premium increases resulting from the nature of the occupancy of any
other lessee of the Building. If the parties insert a dollar amount in Paragraph
1.9. such amount shall be considered the "BASE PREMIUM." If a dollar amount has
not been Inserted in Paragraph 1.9 and if the Building has been previously
occupied during the twelve (12) month period immediately preceding the
Commencement Date, the "Base Premium" shall be the annual premium applicable to
such twelve (12) month period. If the Building was not fully occupied during
such twelve (12) month period, the "Base Premium" shall be the lowest annual
premium reasonably obtainable for the Required Insurance as of the Commencement
Date, assuming the most nominal use possible of the Building. In no event,
however, shall Lessee be responsible for any portion of the premium cost
attributable to liability insurance coverage in excess of $1,000,000 procured
under Paragraph 8.2(b).

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

     8.2 LIABILITY INSURANCE.

          (a) CARRIED BY LESSEE. Lessee shall obtain and keep in force 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 insured's) 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 $1,000,000 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 cost. 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 or the Lessor or included in the Base
Premium), including coverage for any additional costs resulting from debris
removal and reasonable amounts of coverage for the enforcement of any ordinance
or law regulation 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. 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.


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          (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 with a deductible not to exceed $1,000
per occurrence. The proceeds from any such insurance shall be used by Lessee for
the replacement of personal property and the restoration of Trade Fixtures and
Lessee-Owned Alterations and Utility Installations. Upon request from Lessor,
Lessee shall provide Lessor with written evidence that such insurance is in
force.

     8.5 INSURANCE POLICIES. Insurance required 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 earlier of the Early Possession Date or the
Commencement Date, certified copies of, or certificates evidencing the existence
and amounts of, the insurance required under Paragraph 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.

     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 negligence 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 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.

     8.8 EXEMPTION OF LESSOR FROM LIABILITY. Lessor shall not be liable for
injury or damage to the person or goods, wares, merchandise or other property of
Lessee, Lessee's employees, contractors, invitees, customers, or any other
person in or about the Premises, whether such damage or injury is caused by or
results from fire, steam, electricity, gas, water or rain, or from the breakage,
leakage, obstruction or other defects of pipes, fire sprinklers, wires,
appliances, plumbing, 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 of any other
lessee of Lessor nor from the failure by Lessor to enforce the provisions of any
other lease in the Industrial Center. Notwithstanding Lessor's negligence or
breach of this Lease, Lessor shall under no circumstances be liable for injury
to Lessee's business or for any loss of income or profit therefrom.

9. DAMAGE OR DESTRUCTION.

     9.1 DEFINITIONS.

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

          (b) "PREMISES TOTAL DESTRUCTION" shall mean damage or destruction to
the Premises, other than Lessee-Owned Alterations and Utility Installations, 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 Promises Partial Damage that
is an insured Loss occurs, then Lessor shall, at Lessor's expense, repair such
damage (but not Lessee's Trade Fixtures or Lessee-Owned Alterations and Utility
Installations) as soon as reasonably possible and this Lease shall continue in
full force and effect. 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 sixty (60) days following the occurrence of the 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 data 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 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 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 specified in Lessor's notice of termination.

     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 sixty (60) days
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 damage for which the cost to repair exceeds
one month's Base Rent, whether or not an Insured Loss, Lessor may, at Lessor's
option, terminate this Lease effective sixty (60) days following the date of
occurrence of such damage by giving written notice to Lessee of Lessor's
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 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 or assurance during such period, then this
Lease shall terminate as of the date set forth in the first sentence of this
Paragraph 9.5.

     9.6 ABATEMENT OF RENT; LESSEE'S REMEDIES.

          (a) 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.


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          (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 on a date not less than sixty (60) days following the
giving of such notice. 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 this 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, unless Lessee is legally responsible therefor (in which case Lessee
shall make the investigation and remediation thereof required by Applicable
Requirements and this Lease shall continue in full force and effect, but subject
to Lessor's rights under Paragraph 6.2(c) and Paragraph 13), Lessor may at
Lessor's option either (i) Investigate and remediate such Hazardous Substance
Condition, if required, as soon as reasonably possible at Lessor's expense, in
which event this Lease shall continue in full force and effect, or (ii) if the
estimated cost to investigate and remediate such condition exceeds twelve (12)
times the then monthly Base Rent or $100,000 whichever is greater, give written
notice to Lessee within thirty (30) days after receipt by Lessor of knowledge of
the occurrence of such Hazardous Substance Condition of Lessor's desire to
terminate this Lease as of the date sixty (60) days following the date of such
notice. In the event Lessor elects to give such notice of Lessor's intention to
terminate this Lease. Lessee shall have the right within ten (10) days after the
receipt of such notice to give written notice to Lessor of Lessee's commitment
to pay for the excess costs of (a) Investigation and remediation of such
Hazardous Substance Condition to the extent required by Applicable Requirements,
over (b) an amount equal to twelve (12) times the then monthly Base Rent or
$100,000, whichever is greater. Lessee shall provide Lessor with the funds
required of Lessee or satisfactory assurance thereof within thirty (30) days
following said commitment by Lessee. In such event this Lease shall continue in
full force and effect, and Lessor shall proceed to make such Investigation and
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.

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

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

10. REAL PROPERTY TAXES.

     10.1 PAYMENT OF TAXES. Lessor shall pay the Real Property Taxes, as defined
in Paragraph 10.2(a), applicable to the Industrial Center, and except as
otherwise provided in Paragraph 10.3, any increases in such amounts over the
Base Real Property Taxes 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 DEFINITIONS

          (a) 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.

          (b) As used herein, the term "BASE REAL PROPERTY TAXES" shall be the
amount of Real Property Taxes, which are assessed against the Premises, Building
or Common Areas in the calendar year during which the Lease is executed. 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.

     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.

     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 alter 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 of all such charges jointly metered or billed with other
premises in the Building, in the manner and within the time periods set forth in
Paragraph 4.2(d).

12. ASSIGNMENT AND SUBLETTING.

     12.1 LESSOR'S CONSENT REQUIRED.

          (a) Lessee shall not voluntarily or by operation of law assign,
transfer, mortgage or otherwise transfer or encumber (collectively, "assign") or
sublet all or any part of Lessee's interest in this Lease or in the Premises
without Lessor's prior written consent given under and subject to the terms of
Paragraph 36.

          (b) A change in the control of Lessee shall constitute an assignment
requiring Lessor's consent. The transfer, on a cumulative basis, of twenty-five
percent (25%) or more of the voting control of Lessee shall constitute a change
in control for this purpose.

          (c) The Involvement of Lessee or its assets in any transaction, or
series of transactions (by way of merger, sale, acquisition, financing,
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 twenty-five percent (25%) 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 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 either: (i) terminate this Lease, or (ii) upon thirty (30)
days' written notice ("Lessor's Notice"). Increase the monthly Base Rent for the
Premises to the greater of the then fair market rental value of the Premises, as
reasonably determined by Lessor, or one hundred ten percent (110%) of the Base
Rent then in effect. Pending determination of the new fair market rental value,
if disputed by Lessee, Lessee shall pay the amount set forth in Lessor's Notice,
with any overpayment credited against the next installment(s) of Base Rent
coming due, and any underpayment for the period retroactively to the effective
date of the adjustment being due and payable immediately upon the determination
thereof. Further, in the event of such Breach and rental adjustment, (i) the
purchase price of any option to purchase the Premises held by Lessee shall be
subject to similar adjustment to the then fair market value as reasonably
determined by Lessor (without the Lease being considered an encumbrance or any
deduction for depreciation or obsolescence, and considering the Premises at its
highest and best use are in good condition) or one hundred ten percent (110%) of
the price previously in effect, (ii) any index-oriented rental or price
adjustment formulas contained in this Lease shall be adjusted to require that
the base index be determined with reference to the index applicable to the time
of such adjustment, and (iii) any fixed rental adjustments scheduled during the
remainder of the Lease term shall be increased in the same ratio as the new
rental bears to the Base Rent in effect immediately prior to the adjustment
specified in Lessor's Notice.

          (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 END 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, 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. However, 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.


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          (d) In the event of any Default or Breach of Lessee's obligation under
this Lease, Lessor may proceed directly against Lessee, any Guarantors Of anyone
else responsible for the performance of the Lessee's obligations under this
Lease. Including any sublessee, 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, together with a non-refundable
deposit of $1,000 or ten percent (10%) of the monthly Base Rent applicable to
the portion of the Premises which is the subject of the proposed assignment or
sublease, whichever Is greater, as reasonable consideration for Lessor's
considering and processing the request for consent. Lessee agrees to provide
Lessor with such other or additional Information and/or documentation as may be
reasonably requested by Lessor.

          (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 conform and comply with each
and every term, covenant, condition and obligation herein to be observed or
performed by Lessee during the term of said assignment or sublease, other than
such obligations as are contrary to or inconsistent with provisions of an
assignment or sublease to which Lessor has specifically consented in writing.

          (g) The occurrence of a transaction described in Paragraph 12.2(c)
shall give Lessor the right (but no; the obligation) to require that the
Security Deposit be increased by an amount equal to six (6) times the then
monthly Base Rent, and Lessor may make the actual receipt by Lessor of the
Security Deposit increase a condition to Lessor's consent to such transaction.

          (h) Lessor, as a condition to giving its consent to any assignment or
subletting, may require that the amount and adjustment schedule of the rent
payable under this Lease be adjusted to what is then the market value and/or
adjustment schedule for property similar to the Premises as then constituted, as
determined by Lessor;

     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 to 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 defaults
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 any, specified in such notice. The sublessee shall
have a right of reimbursement and offset from and against Lessee for any such
Defaults cured by the sublessee.

13. DEFAULT; BREACH; REMEDIES.

     13.1 Default; Breach. 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 any of the
terms, covenants, 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.

          (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 surely 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 per
Paragraph 6.3, (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 (easements), or (viii) any other documentation or
information which Lessor may reasonably require of Lessee under the terms of
this lease, where any such failure continues for a period of ten (10) days
following 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 written 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 thirty (30) days; or (iv) the attachment,
execution or other judicial seizure of substantially all of Lessee's assets
located at the Premises or of Lessee's interest in this Lease, where such
seizure is not discharged within thirty (30) 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 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.

          (h) A default by Lessee under the terms and conditions of No. 60 of
the Addendum to this Lease concerning Vehicle Parking.

     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 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 or 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 pro-


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ceeding 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 statue 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 relieve Lessee from liability under
any indemnity provisions of this Lease as to matters occurring or accruing
during the term hereof or by reason of Lessee's occupancy of the Premises.

     13.3 INDUCEMENT RECAPTURE IN EVENT OF BREACH. Any agreement by Lessor for
free or abated rent or other charges applicable to the Premises, or for the
giving or paying by Lessor to or for Lessee of any cash or other bonus.
Inducement or consideration for Lessee's entering into this Lease, all of which
concessions are hereinafter referred to as "Inducement Provisions" shall be
deemed conditioned upon Lessee's full and faithful performance of all of the
terms, covenants and conditions of this Lease to be performed or observed by
Lessee during the term hereof as the same may be extended. Upon the occurrence
of a Breach (as defined in Paragraph 13.1) of this Lease by Lessee, any such
Inducement Provision shall automatically be deemed deleted from this Lease and
of no further force or effect, and any rent, other charge, bonus, Inducement or
consideration theretofore abated, given or paid by Lessor under such an
Inducement Provision shall be immediately due and payable by Lessee to Lessor,
and recoverable by Lessor, as additional rent due under this Lease,
notwithstanding any subsequent cure of said Breach by Lessee. The acceptance by
Lessor of rent or the cure of the Breach which initiated the operation of this
Paragraph 13.3 shall not be deemed a waiver by Lessor of the provisions of this
Paragraph 13.3 unless specifically so stated in writing by Lessor at the time of
such acceptance.

     13.4 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 of deed of trust covering the Premises.
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 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.

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 of 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. 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. Lessee shall be
responsible for the payment of any amount in excess of such net severance
damages required to complete such repair.

15. BROKERS' FEES.

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

     15.4 REPRESENTATIONS AND WARRANTIES. Lessee and Lessor each represent and
warrant to the other that it has had no dealings with any person, firm, broker
or finder other than 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
Indemnity, 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) days after written notice from the other Party (the "REQUESTING PARTY")
execute, acknowledge and deliver to the Requesting Party a statement in writing
in a form similar to the then most current "TENANCY STATEMENT" form published
by the American Industrial Real Estate 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.

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 four percent (4%) per annum, but not exceeding the
maximum rate allowed by law, In addition to the potential late charge provided
for in Paragraph 13.4.

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

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

22. NO PRIOR OR OTHER AGREEMENTS; BROKER DISCLAIMER. This Lease contains all
agreements between the Parties with respect to any matter mentioned herein, and
no other prior or contemporaneous agreement or understanding shall be effective.
Lessor and Lessee each represents and warrants to the Brokers that it has made,
and is relying solely upon, its own investigation as to the nature, quality,
character and financial responsibility of the other Party to this Lease and as
to the nature, quality and character of the Premises. Brokers have no
responsibility with respect thereto or with respect to any default or breach
hereof by either Party. Each Broker shall be an intended third party beneficiary
of the provisions of this Paragraph 22.


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23. NOTICES.

     23.1 NOTICE REQUIREMENTS. All notices required or permitted by this Lease
shall be in writing and may be delivered in person if actual receipt is
acknowledged (by hand or by messenger or courier service) or may be sent by
overnight private courier guaranteeing next day delivery, 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
addresses noted 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 by
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. 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 Private 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
mall. If notice is received on a Saturday or a 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 of effect
whatsoever unless specifically agreed to in writing by Lessor at or before the
time of deposit of such payment.

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 then the Base Rent payable from and after the time of the expiration or
earlier termination of this Lease shall be increased to two hundred percent
(200%) of the Base Rent applicable during The month immediately preceding such
expiration or earlier termination. Nothing contained herein shall be construed
as a consent by Lessor to any holding over by Lessee.

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

28. COVENANTS END 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 end 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 or 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.

31. ATTORNEYS' FEES. If any Party 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 in a separate suit, whether or not such action or proceeding is
pursued to decision or judgment. The term "PREVAILING PARTY" shall include,
without limitation, a Party or 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 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 action is subsequently commenced in connection with such
Default or resulting Breach.

32. LESSOR'S ACCESS; SHOWING PREMISES; REPAIRS. Lessor and Lessor's agents shall
have the right to enter the Premises at any time. In the case of an emergency,
and otherwise at reasonable times for the purpose of showing the same to
prospective purchasers, lenders, or 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 reasonableness 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 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 within 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 and 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. Including but not
limited to consents to an assignment a subletting or the presence or use of a
Hazardous Substance, shall be paid by Lessee to Lessor upon receipt of an
Invoice and supporting documentation therefor. In addition to the deposit
described in Paragraph 12.2(e). Lessor may, as a condition to considering any
such request by Lessee, require that Lessee deposit with Lessor an amount of
money (In addition to the Security Deposit held under Paragraph 5) reasonably
calculated by Lessor to represent the cost lessor will incur in considering and
responding to Lessee's request. Any unused portion of said deposit shall be
refunded to Lessee without Interest. Lessor's consent to any act, assignment of
this Lease or subletting of the Premises by Lessee shall not constitute an
acknowledgment that no Default or Breach by Lessee of this Lease exists, nor
shall such consent be deemed a waiver of any then existing Default or Breach,
except as may be otherwise specifically stated in writing by Lessor at the time
of such consent.

          (b) All conditions to Lessor's consent authorized by this Lease are
acknowledged by Lessee as being reasonable. The failure to specify herein any
particular condition to Lessor's consent shall not preclude the impositions by
Lessor at the time of consent of such further or other conditions as are then
reasonable with reference to the particular matter for which consent is being
given.

37. GUARANTOR.

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


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

38. QUIET POSSESSION. 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 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. 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.

          (a) Lessee shall have no right to exercise an Option, notwithstanding
any provision in the grant of Option to the contrary: (i) during the period
commencing with the giving of any notice of Default under Paragraph 13.1 and
continuing until the noticed Default is cured, or (ii) during the period of time
any monetary obligation due Lessor from Lessee is unpaid (without regard to
whether notice thereof is given Lessee), or (iii) during the time Lessee is in
Breach of this Lease, or (iv) 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, whether or
not the Defaults 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 term of
this Lease, (i) Lessee fails to pay to Lessor a monetary obligation of Lessee
for a period of thirty (30) days after such obligation becomes due (without any
necessity of Lessor to give notice thereof to Lessee), or (ii) Lessor gives to
Lessee three (3) or more notices of separate Defaults under Paragraph 13.1
during any twelve (12) month period, whether or not the Defaults are cured, or
(iii) If Lessee commits a Breach of this Lease.

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

41. SECURITY MEASURES. Lessee hereby acknowledges that the 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 race ways, dedications, maps and restrictions do not reasonably
interfere with the use of the Premises by Lessee. 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 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 of handwritten provisions shall be controlled by the typewritten or
hand written 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 Lesser shall not be
deemed an offer to lease. This Lease is not intended to be binding until
executed and delivered by all Parties hereto.

47. AMENDMENTS. This Lease may be modified only in writing, signed by the
parties in interest at the time of the modification. 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 entitles named herein as such Lessor or Lessee.


                                       Initials: SN
                                                 ------------------------------
                                                 JC

MULTI-TENANT--GROSS
(C) American Industrial Real Estate Association 1993


                                      -10-
<PAGE>

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

          IF THIS LEASE HAS BEEN FILLED IN, IT HAS BEEN PREPARED FOR YOUR
          ATTORNEYS 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 AND TAX CONSEQUENCES OF THIS LEASE. IF THE
          SUBJECT PROPERTY IS IN A STATE OTHER THAN CALIFORNIA, AN ATTORNEY FROM
          THE STATE WHERE THE PROPERTY IS LOCATED SHOULD BE CONSULTED.

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

Executed at:                            Executed at:
             ------------------------                ---------------------------
on:                                     on:
    ---------------------------------       ------------------------------------

BY LESSOR:                              BY LESSEE:
MHW Realty, Ltd., a California          C & C Vision
Limited Partnership                     a Delaware Corporation


By: Whittier Realty, LLC., a Delaware   By: /s/ Steven J. Naber
    Company                                 ------------------------------------
Name Printed: Its: General Partner      Name Printed: Steven J. Naber
Title:                                  Title: Vice President/CFO
       ------------------------------


By: /s/ John Watkins                    By: /s/ J. Stuart Cumming
    ---------------------------------       ------------------------------------
Name Printed: John Watkins              Name Printed: J. Stuart Cumming, M.D.
Title: President                        Title: Vice President, CSO
Address: Attn: Real Estate Department   Address: 6 Journey, Suite 270
         1600 Huntington Drive                   Aliso Viejo, CA 92656
         South Pasadena, CA 91030-4792
Telephone: (626) 441-5111               Telephone: (949) 916-9352
Facsimile: (626) 441-5454               Facsimile: (949) 916-9359
Federal ID No. 95-3634647


BROKER:                                 BROKER:

Executed At:                            Executed At:
             ------------------------                ---------------------------
On:                                     On:
    ---------------------------------       ------------------------------------


By:                                     By:
    ---------------------------------       ------------------------------------
Name Printed:                           Name Printed:
              -----------------------                 --------------------------
Title:                                  Title:
       ------------------------------          ---------------------------------
Address:                                Address:
         ----------------------------            -------------------------------

-------------------------------------   ----------------------------------------
Telephone: (      )                     Telephone: (      )
            ------  -----------------               ------  --------------------
Facsimile: (      )                     Facsimile: (      )
            ------  -----------------               ------  --------------------

NOTE: These forms are often modified to meet changing requirements of law and
      needs of the industry, Always write or call to make sure you are utilizing
      the most current form: AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION, 345
      So. Figueroa St., M-1, Los Angeles, CA 90071, (213) 687-8777.

(c) 1993 by American Industrial Real Estate Association. All rights reserved. No
part of these words may be reproduced in any form without permission in
writing.


                                        Initials: SN
                                                  ------------------------------
                                                  JC

MULTI-TENANT--GROSS
(c) American Industrial Real Estate Association 1993


                                      -11-

<PAGE>

              ADDENDUM TO LEASE DATED JULY 19, 2000, BY AND BETWEEN
                                MHW REALTY, LTD.
                   A CALIFORNIA LIMITED PARTNERSHIP, AS LESSOR
                                       AND
                                 C & C VISION,
                        A DELAWARE CORPORATION, AS LESSEE

49. Addenda: If any provision contained in this Addendum to this Lease is
inconsistent with any Other provisions in the Lease, the provisions contained
in this Addendum shall control, unless otherwise provided in this Addendum. The
Lease and this Addendum shall together constitute the "Lease" for purposes
hereof.

50. Early Possession: Lessee shall be entitled to early possession of Rooms
"101" through "106" (herein "Early Possession Space") within the Premises as
shown on Exhibit C upon completion of all of the following requirements:

          (a) Lessor's receipt of this Lease mutually executed by both Lessor
          and Lessee.

          (b) Lessor's receipt from Lessee of the first and last months prepaid
          rent and the first months prepaid Common Area Operating Expense
          described in Paragraphs 1.6(a) of the Lease.

          (c) Lessor's receipt from Lessee of the Security Deposit described in
          Paragraphs 1.7 of the Lease.

          (d) Lessor's receipt from Lessee of Certificates of Insurance
          indicating the insurance coverage required under Paragraph 8 of the
          Lease.

Lessee's occupancy of the Early Possession Space shall occur while Lessor is
constructing the Improvements (defined below) in the Premises. Accordingly,
Lessee shall not hinder or interfere with Lessor's construction activities
conducted within the Premises and Lessee shall vacate the Premises within twenty
four hours from Lessor's notice that it intends to perform any Improvements
within the Early Possession Space in conformance with the Space Plan as defined
below. Lessee shall assume all risk in connection with its use of the Premises
during the time Lessor is performing construction activities within the Early
Possession Space. If any act or omission by Lessee increases the cost of work or
materials or the time required for completion of constructing the Improvements,
the Lessee shall reimburse Lessor for such increase in cost at the time the
increased cost is requested and shall reimburse Lessor for any loss in Base Rent
at the time the Base Rent would have become due. All amounts payable by Lessee
to Lessor under this section shall be included as Base Rent for all purposes
under this Lease.

51. Utility Requirements: Lessee acknowledges that Lessor has not made any
implied or express warranty or representation in connection with any specific
utility capacity of the Premises, the Building or the Industrial Center.

52. Outside Premises. Lessee agrees that there is to be no work activity or
storage of any kind outside of Lessee's Premises. All paved areas, including
parking spaces, driveways, sidewalks and alleys, are to be kept clean and clear
at all times except for legitimate parking of vehicles as defined in the Lease.

53. Trash Disposal. Lessee agrees that all trash and debris is to be deposited
in receptacles provided within the industrial Center by Lessor. If it is
determined that Lessee is regularly disposing of an unusually large amount of
refuse, Lessee shall, within ten (10) days of receipt of written notice from
Lessor and at Lessee's sole expense, provide for an additional trash bin, and
pickup service at the leased Premises. Where Lessee's business necessitates
special pickup of other large quantities or types of materials and/or items,
whether disposable or not, these may be temporarily placed outside Lessee's
Premises at the overhead door on those days only that such material and/or
items are scheduled for pickup and shall not remain outside the Premises
overnight.

54. Use. In conformance with Paragraph 6.1 of the Lease, Lessee agrees that no
domestic animals, except for Seeing Eye or Service dogs shall be allowed in or
on the Premises at any time. Lessor makes no representation or warranties as to
the sufficiency of the Premises, the Building or the Industrial Center for the
permitted use under this Lease or whether the Premises, Building or the
Industrial Center meets the requirements of Lessee's business.

55. Improvements Lessor and Lessee approve the attached Exhibit "C" ("Space
Plan") illustrating the improvements ("Improvements") to be made to the
Premises. Lessor shall contribute a tenant Improvement allowance of Eighteen
Thousand Nine Hundred Twenty Dollars ($18,920.00) (herein referred to as
"Lessor's Allowance") towards construction of improvements ("Improvements") in
the Premises. All costs for space planning, working drawings, permits, fees
etc., shall be included in the Lessor's Allowance. Lessor shall bear the cost of
constructing the Improvements only to the extent such cost does not exceed
Lessor's Allowance. All Improvement costs and expenses in excess of Lessor's
Allowance shall be paid by Lessee to Lessor upon approval by Lessee of the
Improvement cost. Lessee shall accompany its approval with payment in the amount
of the increase over the Lessor's Allowance. Lessor shall then cause its
contractor to proceed to secure a building permit and commence construction of
the Improvements.

Lessor makes no representations or warranties as to the sufficiency of the
Improvements for the permitted use under this Lease or whether the Improvements
meet the requirements of Lessee's business. Lessor shall construct all
Improvements illustrated on the Space Plan (excluding all personal property,
furniture, equipment, etc.) subject to the requirements of any local, state or
federal Laws. Lessor does not warrant the time frame necessary to complete the
Improvements.


                                        SN
                                        ----------------------------------------
                                        JC


                                   Page 1 of 3
<PAGE>

No changes ("Change") shall be made to the Exhibit "C" Space Plan without the
prior written consent of Lessee and Lessor, which consent shall not be
unreasonably withheld. However, Lessor shall not be required to approve any
Changes that (a) do not conform to local, state and federal laws, ordinances,
statutes, rules and regulations (collectively "Laws"); (b) require Building
service beyond the level normally provided to other tenants in the Building
unless Lessee agrees to pay for the extra services; or (c) over-load the floors
or create a structural problem for the Building. Lessor shall respond with an
approval or disapproval within five (5) business days from receiving Lessee's
request for a Change. If Lessor approves the Change, the Lessor shall notify
Lessee in writing ("Change Notice") of the approximate planning, permit and
construction costs (collectively "Change Cost") for the Changes and the amount
of any delay such Change would cause in the construction of the Improvements.
Lessee shall be deemed to disapprove such Change unless Lessee approves the
Change in writing to Lessor within five (5) business days from Lessee's receipt
of Lessor's Change Notice. In the event Lessee approves such Change, Lessee
shall accompany its approval with payment in the amount of the increase in
Change Cost.

Lessor shall construct all Improvements in a good and workmanlike manner in
accordance with the Space Plan and Changes (excluding all personal property,
furniture, fixtures, equipment, telephone equipment, cabling, etc.) subject to
the requirements of any local, state or federal Laws.

Lessee may inspect construction of the Improvements from time to time upon
reasonable advance notice to Lessor. Lessee shall not exercise any control over
the persons performing the construction activities on the Improvements.

Lessee's contractors, upon reasonable advance notice, shall have the right to
enter the Premises to perform other improvements during the time Lessor is
constructing the Improvements. All work on the Premises performed by Lessee
shall be conducted in such a way as to not unreasonably hinder or delay Lessor's
construction of the Improvements. Lessee's contractors shall be approved by
Lessor prior to the commencement of the Lessee's work.

56. Condition. Lessor is tendering the Premises to the Lessee on the Early
Possession Date without the Improvements. Lessee accepts the Premises in "as-is"
condition on the Early Possession Date. Lessor shall, in good faith, use its
best efforts to construct and complete the Improvements in a timely manner but
does not represent or warrant that the Improvements will be completed by any
specific date.

57. Term Commencement Agreement: Upon the Commencement Date Lessor and Lessee
shall execute and deliver a Term Commencement Agreement to confirm the
Commencement Date, the dates of the Base Rent paid upon Lease execution and the
Expiration Date.

58. Window Coverings. Lessee agrees that the windows must have window coverings
and that such window coverings are restricted to white vertical blinds only.
Lessee shall pay the cost of installation and materials associated with
installation of such white vertical blinds.

59. Storage. Local governing ordinances restrict stacking or of any goods or
material above 12 feet high. Lessee agrees there will be no high pile storage in
the Premises.

60. Vehicle Parking. All parking of vehicles by Lessee, its employees, clients,
invitees, affiliates, independent contractors and subcontractors shall only take
place in the area for unreserved parking as illustrated on the attached Exhibit
A. Lessee acknowledges that such parking may be in common with other tenants of
the Building and the Industrial Center. Lessor advises Lessee that it is
extremely important that Lessee not use the reserved parking spaces ("Other
Lessee's Reserved Parking") as illustrated on the attached Exhibit "A", as such
action would violate the parking rights of the other lessees in the Industrial
Center. Accordingly, Lessee shall be in material Default of this Lease in the
event Lessee's use of the parking exceeds the allocated number of spaces or
Lessee uses Other Lessee's Reserved Parking spaces.

Paragraph 13.1. D of this Lease is hereby suspended in connection with this
Addendum paragraph No. 60 on Vehicle Parking and Lessee shall not be allowed a
cure period of any time if Lessee is in Default for reason of exceeding use of
the allocated number of parking spaces or using Other Lessee's Reserved Parking
spaces. Lessee's use of more than the allocated number of parking spaces or of
Other Lessee's Reserved Parking spaces shall instantly create a material
Default. In the event Lessee is in material Default of this Addendum Paragraph
No. 60 on Vehicle Parking then Lessor shall be entitled to pursue the remedies
set forth in Paragraphs 13.2 and/or 13.3 of the Lease without giving Lessee an
opportunity to cure the material Default.

The term "Lessee" as used in this Addendum paragraph No. 60 on Vehicle Parking
includes, but is not limited to, Lessee, its employees, clients, invitees,
affiliates, and independent contractors and subcontractors.

Unless otherwise instructed, every person using the parking area is required to
park and lock his or her own vehicle. Lessor will not be responsible for any
damages to vehicles, injury to persons or loss of property, all of which risks
are assumed by the party using the parking area.

The maintenance, washing, waxing or cleaning of vehicles in the parking area, or
common areas is prohibited.



                                        SN
                                        ----------------------------------------
                                        JC

                                   Page 2 of 3

<PAGE>

Lessee shall be responsible for seeing that all of its employees, Lessees,
agents, or invitees comply with the applicable parking rules, regulations, Laws
and agreements.

61. Signage: Subject to Lessor's review and approval, the requirements of
Signage Criteria for the Haven Executive Park (Exhibit "B" attached hereto), and
any applicable municipal and regulatory restrictions and approvals, Lessee shall
be allowed to place its sign above its suite. All signage shall be at Lessee's
sole cost and expense. At the expiration or sooner termination of this Lease,
Lessee shall, at Lessee's sole cost and expense, have such signage removed and
the Building and/or the Industrial Center restored to its condition existing
prior to the placement of Lessee's signage. Lessee shall complete such removal
and restoration work within ten (10) business days following such expiration or
termination. If such removal and restoration work is not completed within the
ten (10) day period, Lessor shall have the right to complete such work and
Lessee shall reimburse Lessor for the cost thereof.

62. Force Majure. Any prevention, delay or stoppage of work to be performed by
Lessor which is due to strike, labor disputes, inability to obtain labor,
materials, equipment or reasonable substitutes therefore, acts of nature or God,
governmental restrictions or regulations or controls, judicial order, enemy or
hostile government actions, civil commotion, fire or other casualty, or other
cause beyond the reasonable control of the Lessor shall excuse performance of
the work by Lessor for a period equal to the duration of that prevention, delay
or stoppage.

63. Relocation. Lessor shall have the right to relocate the Premises to another
part of the Industrial Center in accordance with the following:

A.   The new Premises shall be substantially the same in size as the Premises
     described in this Lease, and shall be placed in that condition by Lessor at
     its cost.

B.   The physical relocation of the premises shall be accomplished by Lessor at
     its cost.

C.   Lessor shall give Lessee at least thirty (30) days notice of Lessor's
     intention to relocate the Premises.

64. Laws. Lessee at its sole cost and expense, shall comply with all local,
state and federal laws, ordinances, codes, rules or regulations (collectively
"Laws") in connection with its use of the Premises.

65. Representations: Except as expressly stated in this Lease, Lessee
acknowledges that Lessor has not made any implied or express warranty or
representation in connection with the nature, use, or condition of the Premises
or the Project or the safety or security of any person or of any Lessee's
property within the Premises, the Building, or the Industrial Center.

66. Full Authority: The individuals signing this Lease represent and warrant
that they have full authority and are empowered to sign and deliver the Lease
for their respective party and the Lease is binding on their respective party.

                LESSOR                                   LESSEE
          MHW Realty, Ltd.,                           C & O VISION,
   a California limited partnership              a Delaware corporation


By: Whittier Realty LLC                 By: /s/ Steven J. Naber
Its: General Partner                        ------------------------------------
                                            Steven J. Naber,
                                            Vice President/CFO


By: /s/ John Watkins                    By: /s/ J. Stuart Cumming
    ---------------------------------       ------------------------------------
    John Watkins,                           J. Stuart Cumming
    President                               Vice - President


                                        SN
                                        ----------------------------------------
                                        JC

                                   Page 3 of 3
<PAGE>

                                 MHW REALTY LLC
                              1600 HUNTINGTON DRIVE
                      SOUTH PASADENA, CALIFORNIA 91030-4792
                     PHONE (626) 441-5111 FAX (626) 441-5454

                                 August 27, 2003

Mr. Steve Naber
C & C Vision
6 Journey Suite 125
Aliso Viejo, CA 92656

     RE: 10572 Acacia Street Suite C-9/10
         10574 Acacia Street Suite D-1
         Rancho Cucamonga, CA 91730

Dear Steve:

Enclosed for your files is a fully executed copy of the Term Commencement
Agreement for the First Amendment and Extension of Lease for the above
referenced suites. We wish you much success with your new venture.

Sincerely,


/s/ Corrine Tomlinson
-------------------------------------
Corrine Tomlinson
Assistant Vice President, Real Estate
Officer
<PAGE>

                           TERM COMMENCEMENT AGREEMENT

This Term Commencement Agreement, dated August 5, 2003 is made in regard to that
certain First Amendment and Extension of Lease ("First Amendment") between MHW
Realty, Ltd., a California limited partnership (hereinafter referred to as
"Lessor") and C & C Vision, a Delaware corporation (hereinafter referred to as
"Lessee") dated June 2, 2003 for the Premises located at 10572 Acacia Street
Suite C-9/10 ("Expansion Premises") and 10574 Acacia Street Suite D-1, Rancho
Cucamonga, California.

WHEREAS, the commencement date of the First Amendment, at the time of its
making, was left to future determination based upon the substantial completion
of the Improvements in the Expansion Premises;

WHEREAS, the commencement date of the First Amendment has now been ascertained,
and Landlord and Tenant desire to enter into an Addendum to amend the Lease as
follows:

          1. REVISED COMMENCEMENT DATE: The commencement date of the First
Amendment and Extension of Lease is hereby established and determined to be July
1, 2003.

Except as set forth above, all other terms and conditions of the Lease shall
remain in full force and effect.

                LESSOR                                   LESSEE

          MHW Realty, Ltd.,                           C & C Vision,
   a California limited partnership              a Delaware corporation


By: Whittier Realty LLC                 By: /s/ Steven J. Naber
                                            ------------------------------------
Its: General Partner                    Print Name: Steven J. Naber
                                        Its: CFO
                                             (title)
By: /s/ John Watkins
    ---------------------------------
    John Watkins                        By: /s/ J. Andy Corley
    President                               ------------------------------------
                                        Printed Name: J. ANDY CORLEY
                                        Its: CEO
                                             (title)



<PAGE>

                           TERM COMMENCEMENT AGREEMENT

This Term Commencement Agreement, dated October 13, 2000 is made in regard to
that certain Lease between MHW Realty, Ltd., a California limited partnership
(hereinafter referred to as "Lessor") and C & C Vision, a Delaware corporation
(hereinafter referred to as "Lessee") dated July 19, 2000 for the Premises
located at 10574 Acacia Street Suite D-1, Rancho Cucamonga, California.

WHEREAS, the commencement date of the Lease, at the time of its making, was left
to future determination based upon the substantial completion of the
Improvements;

WHEREAS, the commencement date of the Lease has now been ascertained, and
Landlord and Tenant desire to enter into an Addendum to amend the Lease as
follows:

     1. COMMENCEMENT DATE: The commencement date of the Lease is hereby
established and determined to be October 1, 2000.

     2. EXPIRATION DATE: The expiration date of the Lease is hereby established
and determined to be September 30, 2003

     3. BASE RENT PAID UPON LEASE EXECUTION: The Base Rent which was paid upon
execution of the Lease pursuant to Paragraph 1.6(a) is hereby determined to be
Base Rent for the months of October 2000 and September 2003.

Except as set forth above, all other terms and conditions of the Lease shall
remain in full force and effect.

                LESSOR                                   LESSEE

          MHW Realty, Ltd.,                          C & C Vision,
   a California limited partnership              a Delaware corporation


By: Whittier Realty LLC                 By: /s/ Steven J. Naber
                                            ------------------------------------
Its: General Partner                    Print Name: Steven J. Naber
                                        Its: CFO

By: /s/ John Watkins
    ---------------------------------
    John Watkins
    President

<PAGE>

                     FIRST AMENDMENT AND EXTENSION OF LEASE

This First Amendment and Extension of Lease ("First Amendment") dated June 2,
2003 is by and between MHW Realty Ltd., a California limited partnership
("Lessor") and C & C Vision, a Delaware corporation ("Lessee").

Lessor and Lessee entered into a lease ("Lease") dated July 19, 2000 for
approximately 3,440 square feet in Suite D-1 at 10574 Acacia Street, Rancho
Cucamonga, California ("Premises").

Lessor and Lessee now desire to extend and amend the Lease as follows:

1. COMMENCEMENT DATE: The commencement date for the revisions outlined in this
First Amendment shall be upon substantial completion of Lessor's Improvements as
defined below in Section 5 ("Revised Commencement Date").

2. TERM: The term of the Lease is extended for three (3) years to September 30,
2006 ("Revised Expiration Date").

3. PREMISES: Effective upon the Revised Commencement Date, the Premises shall
consist of 4,906 square feet in Suite C-9/10 at 10572 Acacia Street ("Expansion
Premises") in addition to the 3,440 square feet in Suite D-1 10574 Acacia Street
for a total rentable square footage of 8,346 as illustrated on the attached
Exhibit A.

4. ADJUSTED BASE RENT: The Base Rent shall be adjusted as follows:

     Effective on the Revised Commencement Date, the Base Rent shall be
     increased to Seven Thousand Five Hundred Dollars ($7,500.00) per month
     payable in advance.

     Effective October 1, 2004, the Base Rent shall be increased to Seven
     Thousand Seven Hundred Twenty Five Dollars ($7,725.00) per month payable in
     advance.

     Effective October 1, 2005, the Base Rent shall be increased to Seven
     Thousand Nine Hundred Fifty Seven Dollars ($7,957.00) per month payable in
     advance.

5. IMPROVEMENTS. Lessor and Lessee approve of the attached Exhibit B Space Plan
("Space Plan") designed by Lessee that illustrates the improvements to be made
to the Expansion Premises by Lessor ("Lessor's Improvements"). Lessor makes no
representations or warranties as to the sufficiency of Lessor's Improvements for
the permitted use under this Lease or whether Lessor's Improvements meet the
requirements of Lessee's business. Lessor shall construct all Lessor's
Improvements illustrated on the Space Plan (excluding all personal property,
furniture, equipment, etc.) subject to the requirements of any local, state or
federal Laws. Lessor does not warrant the time frame necessary to complete
Lessor's Improvements.

Lessor shall contribute an improvement allowance of up to Twenty Four Thousand
Five Hundred Thirty Dollars ($24,530.00) (herein referred to as "Lessor's
Allowance") towards construction of Lessor's Improvements. All costs for space
planning, working drawings, permits, fees etc., shall be included in the
Lessor's Allowance. Lessor shall bear the cost of constructing Lessor's
Improvements only to the extent such cost does not exceed Lessor's Allowance.
Lessor has received a bid from Parkwest Construction Company in the amount of
Twenty Thousand Six Hundred Fifteen Dollars ($20,615.00) ("Parkwest Bid")
attached as Exhibit "C". Lessee hereby approves the Parkwest Bid.

Lessee, at its sole cost and expense, shall be solely responsible for the design
and construction of all Heating Air Conditioning and Ventilation ("HVAC") work
and all ceiling work it requires for the CR and AR rooms ("Lessee's
Improvements"). Lessee has reviewed and approved the existing HVAC equipment on
the roof of the Building that will be connected to Lessee's Improvements.

                                                                     (Illegible)


                                   Page 1 of 3
<PAGE>

Lessor shall complete Lessor's Improvements prior to Lessee commencing its
Lessee's Improvements. Upon the completion of Lessee's Improvements, Lessor
shall reimburse Lessee for the cost of Lessee's Improvements up to $3,915.00
which is the difference between Lessor's Allowance and the Parkwest Bid
("Lessee's Reimbursement Amount") within fifteen (15) days of receipt of the
following from Lessee:

     1.   A breakdown of the costs of Lessee's Improvements, copies of invoices
          and evidence of payment reasonably satisfactory to Lessor.

     2.   Unconditional Lien Releases from all contractors and subcontractors

No changes ("Change") shall be made to the Space Plan without the prior written
consent of Lessee and Lessor, which consent shall not be unreasonably withheld.
However, Lessor shall not be required to approve any Changes that (a) do not
conform to local, state and federal Laws,; (b) require Building service beyond
the level normally provided to other Lessees in the Building unless Lessee
agrees to pay for the extra services; or (c) over-load the floors or create a
structural problem for the Building. Lessor shall respond with an approval or
disapproval within five (5) business days from receiving Lessee's request for a
Change. If Lessor approves the Change, then Lessor shall notify Lessee in
writing ("Change Notice") of the approximate planning, permit and construction
costs (collectively "Change Cost") for the Changes, the resulting increase in
the Base Rent and the amount of any delay such Change would cause in the
construction of Lessor's Improvements. Lessee shall be deemed to disapprove such
Change unless Lessee approves the change in writing to Lessor within five (5)
business days from Lessee's receipt of Lessor's Change Notice. Lessee
acknowledges that Lessee's request for a Change may cause a delay and postpone
occupancy of the Premises but there shall be no abatement of Lessee's Base Rent
as a result of any such delay.

Lessor shall construct all Lessor's Improvements in a good and workmanlike
manner in accordance with the Space Plan and Changes (excluding all personal
property, furniture, equipment, telephone equipment, cabling, etc.) subject to
the requirements of any local, state or federal Laws.

If any act or omission by Lessee increases the cost of work or materials or the
time required for completion of constructing Lessor's Improvements, the Lessee
shall reimburse Lessor for such increase in cost at the time the increased cost
is requested and shall reimburse Lessor for any loss in Base Rent at the time
the Base Rent would have become due. All amounts payable by Lessee to Lessor
under this section shall be included as Base Rent for all purposes under this
Lease.

Lessee may inspect construction of Lessor's Improvements from time to time upon
reasonable advance notice to Lessor. Lessee shall not exercise any control over
the persons performing the construction activities on Lessor's Improvements.

6. Lessee intends to design and manufacture in the Premises products that
require a clean environment for their development. Lessee shall be solely
responsible for maintaining a pure and immaculately clean environment (including
all clean surfaces and air) within the entire Premises so as to satisfy the
required standards for the design and manufacture of Lessee's products. Lessee
shall also be responsible for maintaining the air conditioning equipment
servicing the Premises as provided in Paragraph 7.2 of this Lease.

7. SECURITY DEPOSIT: Upon the execution of this First Amendment, the Security
Deposit shall be increased from Three Thousand Twenty Seven Dollars ($3,027.00)
to Seven Thousand Nine Hundred Fifty Seven Dollars ($7,957.00) by Lessee paying
to Lessor an additional One Thousand Nine Hundred Three Dollars ($1,903.00) and
Lessor applying the amount of Three Thousand Twenty Seven Dollars ($3,027.00)
that Lessee previously paid Lessor as prepaid rent ("Prepaid Rent") for
September 2003.

                                                                     (Illegible)


                                   Page 2 of 3

<PAGE>

8. PREPAID RENT: Since Lessee is applying the Prepaid Rent of Three Thousand
Twenty Seven Dollars ($3,027.00) to increase the Security Deposit, Lessor shall
no longer hold any Prepaid Rent and Lessee shall pay to Lessor the full amount
of $7,500.00 for the September 2003 rent.

9. TENANT PROPORTIONATE SHARE: Effective on the Revised Commencement Date,
Tenant's Proportionate share as set forth in Section 2.r of the Lease is
increased to 8.2%.

10. TERM COMMENCEMENT AGREEMENT: Upon the Revised Commencement Date, Landlord
and Tenant shall execute and deliver a Term Commencement Agreement to confirm
the Revised Commencement Date.

11. REPRESENTATIONS: Except as expressly stated in this First Amendment and the
Lease, Tenant acknowledges that Landlord has not made any implied or express
warranty or representation in connection with the nature, use, or condition of
the Premises or the Project or the safety or security of any person or of any
Tenant's property within the Premises or the Project.

Except as provided herein, all other terms and conditions of the Lease shall
remain in full force and effect.

                LESSOR                                   LESSEE

           MHW Realty, Ltd.                           C & C Vision,
   a California Limited Partnership              a Delaware corporation


By: Whittier Realty LLC,                By: /s/ Steven Naber
    a Delaware limited liability            ------------------------------------
    company                                 Steven Naber
Its: General Partner                    Its: Vice President / CFO


By: /s/ John Watkins                    By: /s/ J. Andy Corley
    ---------------------------------       ------------------------------------
    John Watkins                        Its: CEO
    President


                                   Page 3 of 3
<PAGE>

                                    EXHIBIT A

                        Haven Executive Park - Site Plan

                                  (FLOOR PLAN)

                                 ACACIA STREET


                                        Initials: SN
                                                  ------------------------------
                                                  JC


<PAGE>

                                    EXHIBIT B

                              Haven Executive Park
                        10572 Acacia Street Suite C/9-10
                                Rancho Cucamonga

                                  (FLOOR PLAN)

Lessor's Improvements:

     -    Paint entire suite including warehouse in a generic off white color.
          Lessee to specify type of paint (i.e. flat, gloss or semi-gloss) for
          each room.

     -    Replace flooring in suite as designated by Lessee.

     -    Replace FRP board in bathroom #1.

     -    Remove doorway between CR Room and Open Work Area

     -    Install door between AR and CR.

     -    Install pass through window between AR and CR. Window to be selected
          by Lessee.

     -    Replace damaged ceiling tiles.

     -    Remove Counter in Open Work area.


                                        Initials: SN
                                                  ------------------------------
                                                  JC

<PAGE>

                                    EXHIBIT C

                         PARKWEST CONSTRUCTION COMPANY
                                                                    P.O. BOX 790
                                                             REDLANDS, CA, 92373
                                                                        L#580133

Phone (909) 798-1333
Fax (909) 793-2485

THE WHITTIER TRUST COMPANY                                              5/6/2003
1600 HUNTINGTON DRIVE
SO PASADENA, CA 91030
ATTN: CORRINE TOMLINSON

RE HAVEN EXECUTIVE PARK SUITE C-9 & 10 RANCHO CUCAMONGA, CA PER PRELIMINARY
PLANS AS FOLLOWS

<TABLE>
<S>                                                                    <C>
SS/DRYWALL: CUT IN ONE DOOR OPENING, REMOVE ONE DOOR & INFILL WALL,
   REMOVE EXISTING COUNTER TOP & PATCH WALL. CUT IN ONE WINDOW
   OPENING, MISC DRYWALL PATCHING                                      $ 1,100.00

PLUMBING: CAP OFF ONE WATER LINE, REMOVE & REPLACE BATHROOM
   FIXTURES AFTER FLOORING.                                            $   350.00

GLAZING: SUPPLY & INSTALL ONE 2X2 AIRFLOW WINDOW INTO CR ROOM          $   750.00

INTERIOR FINISH: SUPPLY & INSTALL ONE DOOR W/ CLOSER, WEATHER STRIP,
   REMOVE SIGNS & PATCH DOORS.                                         $   950.00

PAINTING: PAINT ALL WALLS OFF WHITE FLAT PAINT, CR & AR ROOMS ARE
   TO BE PAINTED WITH SEMI GLOSS PAINT. PAINT WAREHOUSE WALLS
   OFF WHITE FLAT PAINT.                                               $ 3,525.00

ELECTRICAL: SUPPLY & INSTALL 12 OUTLETS IN CLEAN ROOM, 2 EXIT SIGNS
   MISC DEMO, CLEAN & RELAMP AS NEEDED.                                $ 1,950.00

FRP BOARD: REMOVE & REINSTALL BATHROOM HARDWARE, INSTALL FRP BOARD
   IN ONE RESTROOM.                                                    $   400.00

FLOORING: REMOVE SOME CARPET, MINOR FLOOR PREP, SUPPLY & INSTALL 51
   BOXES VCT, 710 LF RUBBER BASE, SHEET VINYL IN AR & CR ROOMS,
   INSTALL VCT AND RUBBER BASE IN WAREHOUSE INCLUDING MINOR FLOOR
   PREP                                                                $ 8,370.00

CLEAN UP ROUGH & FINAL                                                 $   750.00

TWO FIRE EXTINGUISHERS                                                 $   110.00

FOIL INSULATION REPAIR IN WAREHOUSE                                    $   150.00

BUILDER FEE                                                            $ 2,275.00
                                                                       ----------
TOTAL                                                                  $20,615.00
                                                                       ==========
</TABLE>

EXCLUDING: PLANS, PERMITS, CLEAN ROOM CERTIFICATION, OTHER ITEMS NOT LISTED
ABOVE

RESPECTFULLY SUBMITTED


/s/ Ron Moore
------------------------------------
RON MOORE


                                        Initials: SN
                                                  ------------------------------
                                                  JC

<PAGE>

                                 MHW REALTY LLC
                             1600 HUNTINGTON DRIVE
                     SOUTH PASADENA, CALIFORNIA 91030-4792
                    PHONE (626) 441-5111 FAX (626) 441-5454

                               December 16, 2004

Mr. Steve Naber
eyeonics
6 Journey Suite 125
Aliso Viejo, CA 92656

     RE: Second Amendment and Extension of Lease
         10572 Acacia Street Suites C-7/8 and C-9/10
         10574 Acacia Street Suite D-1
         Rancho Cucamonga, CA 91730

Dear Steve:

Enclosed for your files is a fully executed copy of the Second Amendment and
Extension of Lease for the above referenced suites. I have been in contact with
the general contractor who will be doing the work in the suite and I'll let
Johnnie know when the Improvements are about to get under way. Thanks for all
your assistance. We wish continued success.

Sincerely,


/s/ Corrine Tomlinson
------------------------------------
Corrine Tomlinson
Assistant Vice President,
Real Estate Officer
<PAGE>

                     SECOND AMENDMENT AND EXTENSION OF LEASE

This Second Amendment and Extension of Lease ("Second Amendment") dated December
2, 2004 is by and between MHW Realty LLC, a California limited liability company
("Lessor") and eyeonics, inc., a Delaware corporation ("Lessee").

MHW Realty, Ltd., Lessor's predecessor in interest, and C & C Vision, Inc. ("C &
C"), Lessee's predecessor in interest, entered into a lease ("Lease") dated July
19, 2000 for approximately 3,440 square feet in Suite D-1 at 10574 Acacia
Street, Rancho Cucamonga, California ("Premises"). The Lease was subsequently
amended by the First Amendment and Extension of Lease dated June 2, 2003 ("First
Amendment") wherein the Premises was expanded to include 4,906 square feet in
Suite C-9/10 at 10572 Acacia Street for a total of 8,346 square feet. C & C
thereafter changed its name to eyeonics, inc.

Lessor and Lessee now desire to extend and amend the Lease as follows:

1. AMENDMENT COMMENCEMENT DATE: The commencement date for the revisions outlined
in this First Amendment shall be January 1, 2005 or upon substantial completion
of the Improvements as defined below in Section 5 ("Amendment Commencement
Date") whichever is later.

2. TERM: The term of the Lease is extended for three (3) years from the Revised
Commencement Date ("Revised Expiration Date").

3. PREMISES: Effective upon the Revised Commencement Date, the Premises shall
consist of 3,664 square feet in Suite C-7/8 at 10572 Acacia Street ("Expansion
Premises") in addition to the 4,906 square feet in Suite C-9/10 at 10572 Acacia
Street and the 3,440 square feet in Suite D-1 10574 Acacia Street for a total
rentable square footage of 12,010 as illustrated on the attached Exhibit A.

4. ADJUSTED BASE RENT: The Base Rent shall be adjusted as follows:

     Effective on the Revised Commencement Date, the Base Rent shall be
     increased to Eleven Thousand Dollars ($11,000.00) per month payable in
     advance.

     Effective thirteen months after the Revised Commencement Date, the Base
     Rent shall be increased to Eleven Thousand Three Hundred Thirty Dollars
     ($11,330.00) per month payable in advance.

     Effective twenty five months after the Revised Commencement Date, the Base
     Rent shall be increased to Eleven Thousand Six Hundred Seventy Dollars
     ($11,670.00) per month payable in advance.

5. IMPROVEMENTS. Lessor, at its sole cost and expense, shall provide only the
following improvements to the Expansion Premises as shown on Exhibit A:

-    Add a wall with a doorway at the north end of the reception area to create
     New Office. Adjust lighting, HVAC and electrical as necessary.

-    Remove the doorway between New Office and Office 1. Plumbing stub out in
     the south wall of Office 1 to remain.

-    Remove the doorway between the Reception and Restroom 1.

-    Replace FRP board in both restrooms. Existing flooring in both restrooms to
     remain.

-    Move the light switch in Office 2 to a location next to the door.

-    Install new building standard carpet in a mutually agreeable color in the
     front office half of the suite.

-    Touch up paint as necessary in front office half of suite.


                                       Initials: SN
                                                 ------------------------------
                                                 JC


                                   Page 1 of 3

<PAGE>

-    Paint walls in an off white flat paint to height of existing gray strip of
     paint. Gray strip and burgundy paint above it to remain.

-    In the Warehouse provide a clean smooth floor. Lessor at its option may
     either clean and seal the existing concrete or install new VCT tiles.

-    In the Warehouse remove ceiling fans and track lighting.

-    Re-secure drooping foil at the Warehouse ceiling. Any foil requiring
     replacement will be replaced with silver foil which will not be painted to
     match existing.

Lessor makes no representations or warranties as to the sufficiency of the
Improvements for the permitted use under this Lease or whether the Improvements
meet the requirements of Lessee's business. Lessor shall construct all
Improvements in a good and workmanlike manner (excluding all personal property,
furniture, equipment, telephone equipment, cabling, etc.) subject to the
requirements of any local, state or federal laws, ordinances, statutes, rules
and regulations (collectively "Laws"). Lessor does not warrant the time frame
necessary to complete the Improvements.

No changes ("Change") shall be made to Exhibit C without the prior written
consent of Lessor, which consent shall not be unreasonably withheld. However,
Lessor shall not be required to approve any Changes that (a) do not conform to
local, state and federal Laws; (b) require Building service beyond the level
normally provided to other tenants in the Building unless Lessee agrees to pay
for the extra services. Lessor shall respond with an approval or disapproval
within five (5) business days from receiving Lessee's request for a Change. If
Lessor approves the Change, then Lessor shall notify Lessee's Corporate office
in writing at Lessee's Mailing Address ("Change Notice"), of the approximate
planning, permit and construction costs (collectively "Change Cost") for the
Changes and the amount of any delay such Change would cause in the construction
of the Improvements. Lessee shall be deemed to disapprove such Change unless
Lessee approves the Change in writing to Lessor within five (5) business days
from Lessee's receipt of Lessor's Change Notice. In the event Lessee approves
such Change, Lessee shall accompany its approval with payment in the amount of
the increase in Change Cost. Lessee acknowledges that Lessee's request for a
Change may cause a delay and postpone occupancy of the Premises but there shall
be no abatement of Lessee's Base Rent as a result of any such delay.

If any act or omission by Lessee increases the cost of work or materials or the
time required for completion of constructing the Improvements, the Lessee shall
reimburse Lessor for such increase in cost at the time the increased cost occurs
and shall reimburse Lessor for any loss in Base Rent at the time the Base Rent
would have become due. All amounts payable by Lessee to Lessor under this
section shall be included as Base Rent for all purposes under this Lease.

Lessee may inspect construction of the Improvements from time to time upon
reasonable advance notice to Lessor. Lessee shall not exercise any control over
the persons performing the construction activities on the Improvements.

Lessee and its contractors, upon reasonable advance notice, shall have the right
to enter the Premises to perform other improvements during the time Lessor is
constructing the Improvements. All work on the Premises performed by Lessee,
shall be conducted in such a way as to not unreasonably hinder or delay Lessor's
construction of the Improvements.

6. If in the future Lessee wishes to utilize the Expansion Premises for
production of its products that require a clean environment for their
development, Lessee shall be solely responsible for creating (subject to the
requirements of Lease Paragraph 12 Alterations) and maintaining a pure and
immaculately clean environment (including all clean surfaces and air) within the
entire Premises so as to satisfy the required standards for the design and
manufacture of Lessee's products. Lessee shall also be responsible for
maintaining the air conditioning equipment servicing the Expansion Premises as
provided in Lease Paragraph 7.2 of the Lease and at its sole cost and expense
for any upgrades that it requires.


                                       Initials: SN
                                                 ------------------------------
                                                 JC


                                   Page 2 of 3

<PAGE>

7. SECURITY DEPOSIT: Upon the execution of this Second Amendment, the Security
Deposit shall be increased from Seven Thousand Nine Hundred Fifty Seven Dollars
($7,957.00) to Eleven Thousand Six Hundred Seventy Dollars ($11, 670.00) by
Lessee paying to Lessor an additional Three Thousand Seven Hundred Thirteen
Dollars ($3,713.00)

8. TENANT PROPORTIONATE SHARE: Effective on the Revised Commencement Date,
Tenant's Proportionate share as set forth in Section 2.r of the Lease is
increased to 15.37%.

9. TERM COMMENCEMENT AGREEMENT: Upon the Revised Commencement Date, Landlord and
Tenant shall execute and deliver a Term Commencement Agreement to confirm the
Revised Commencement Date, the dates of Base Rent Adjustment and the Termination
Date.

10. REPRESENTATIONS: Except as expressly stated in this Second Amendment and the
Lease, Tenant acknowledges that Landlord has not made any implied or express
warranty or representation in connection with the nature, use, or condition of
the Premises or the Project or the safety or security of any person or of any
Tenant's property within the Premises or the Project.

Except as provided herein, all other terms and conditions of the Lease shall
remain in full force and effect.

                LESSOR                                   LESSEE
                ------                                   ------
            MHW Realty LLC                           eyeonics, inc.
     A limited liability company                 a Delaware corporation


By: /s/ Charles Adams III               By: /s/ Steven Naber
    ---------------------------------       ------------------------------------
    Charles Adams III                       Steven Naber
    Vice President of Whittier Realty   Its: Vice President/ CFO
    LLC,
    Managing Member


                                        By: /s/ J. Andy Corley
                                            ------------------------------------
                                            J. Andy Corley
                                        Its: CEO


                                   Page 3 of 3
<PAGE>

                                    EXHIBIT A

                         10572 Acacia Street Suite C-7/8

                                  (FLOOR PLAN)


                                        Initials: SN
                                                  ------------------------------
                                                  JC

<PAGE>

                           TERM COMMENCEMENT AGREEMENT

This Term Commencement Agreement, dated March 31, 2005 is made in regard to that
certain Second Amendment and Extension of Lease ("Second Amendment") between MHW
Realty LLC, a California limited liability company (hereinafter referred to as
"Lessor") and eyeonics, a Delaware corporation (hereinafter referred to as
"Lessee") dated December 2, 2004 for the Premises located at 10572 Acacia Street
Suite C-7/8 ("Expansion Premises") and Suite C-9/10 and 10574 Acacia Street
Suite D-1, Rancho Cucamonga, California.

WHEREAS, the commencement date of the Second Amendment, at the time of its
making, was left to future determination based upon the substantial completion
of the Improvements in the Expansion Premises;

WHEREAS, the commencement date of the Second Amendment has now been ascertained,
and Lessor and Lessee desire to enter into an Addendum to amend the Lease as
follows:

1. REVISED COMMENCEMENT DATE: The commencement date of the Second Amendment and
Extension of Lease is hereby established and determined to be January 16, 2005.

2. TERM: The term of the Lease is extended to January 31, 2008 ("Revised
Expiration Date").

3. ADJUSTED BASE RENT: The Base Rent shall be adjusted as follows:

Effective January 16, 2005, the Base Rent shall be increased to Eleven Thousand
Dollars ($11,000.00) per month payable in advance.

Effective February 1, 2006, the Base Rent shall be increased to Eleven Thousand
Three Hundred Thirty Dollars ($11,330.00) per month payable in advance.

Effective February 1, 2007, the Base Rent shall be increased to Eleven Thousand
Six Hundred Seventy Dollars ($11,670.00) per month payable in advance.

Except as set forth above, all other terms and conditions of the Lease shall
remain in full force and effect.

LESSOR                                  LESSEE
MHW Realty LLC,                         eyeonics, inc.
a California limited liability company  a Delaware corporation


By: Charles Adams III                   By: Steven Naber
    ----------------------------------      ------------------------------------
    Charles Adams III                       Steven Naber
    Vice President of Whittier Realty       Vice President / CFO
    LLC,
    Managing Member


                                        By: J. Andy Corley
                                            ------------------------------------
                                            J. Andy Corley
                                            CEO

<PAGE>

                           TERM COMMENCEMENT AGREEMENT

This Term Commencement Agreement, dated March 31, 2005 is made in regard to that
certain Second Amendment and Extension of Lease ("Second Amendment") between MHW
Realty LLC, a California limited liability company (hereinafter referred to as
"Lessor") and eyeonics, a Delaware corporation (hereinafter referred to as
"Lessee") dated December 2, 2004 for the Premises located at 10572 Acacia Street
Suite C-7/8 ("Expansion Premises") and Suite C-9/10 and 10574 Acacia Street
Suite D-1, Rancho Cucamonga, California.

WHEREAS, the commencement date of the Second Amendment, at the time of its
making, was left to future determination based upon the substantial completion
of the Improvements in the Expansion Premises;

WHEREAS, the commencement date of the Second Amendment has now been ascertained,
and Lessor and Lessee desire to enter into an Addendum to amend the Lease as
follows:

1. REVISED COMMENCEMENT DATE: The commencement date of the Second Amendment and
Extension of Lease is hereby established and determined to be January 16, 2005.

2. TERM: The term of the Lease is extended to January 31, 2008 ("Revised
Expiration Date").

3. ADJUSTED BASE RENT: The Base Rent shall be adjusted as follows:

Effective January 16, 2005, the Base Rent shall be increased to Eleven Thousand
Dollars ($11,000.00) per month payable in advance.

Effective February 1, 2006, the Base Rent shall be increased to Eleven Thousand
Three Hundred Thirty Dollars ($11,330.00) per month payable in advance.

Effective February 1, 2007, the Base Rent shall be increased to Eleven Thousand
Six Hundred Seventy Dollars ($11,670.00) per month payable in advance.

Except as set forth above, all other terms and conditions of the Lease shall
remain in full force and effect.

LESSOR                                   LESSEE
MHW Realty LLC,                          eyeonics, inc.
a California limited liability company   a Delaware corporation


By: Charles Adams III                    By: Steven Naber
    ----------------------------------       -----------------------------------
    Charles Adams III                        Steven Naber
    Vice President of Whittier Realty        Vice President / CFO
    LLC,
    Managing Member


                                        By: J. Andy Corley
                                            ------------------------------------
                                            J. Andy Corley
                                            CEO
<PAGE>

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

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

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

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

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

                    (bb) Exterior signs and any tenant directories.

                    (cc) Fire detection and sprinkler systems.

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

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

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

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

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

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

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

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

          (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 within ten (10) days after a reasonably detailed statement of actual
expenses is presented to Lessee by Lessor. At Lessor's option, however, an
amount may be estimated by Lessor from time to time of Lessee's Share of annual
Common Area Operating Expenses and the same shall be payable monthly or
quarterly, as Lessor shall designate, during each 12-month period of the Lease
term, on the same day as the Base Rent is due hereunder. 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 over -
payment against Lessee's Share of Common Area Operating Expenses next becoming
due. If Lessee's payments under this Paragraph 4.2(d) during said preceding year
were less than Lessee's Share as Indicated on said statement, Lessee shall pay
to Lessor the amount of the deficiency within ten (10) days after delivery by
Lessor to Lessee of said statement.

5. SECURITY DEPOSIT. Lessee shall deposit with Lessor upon 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 falls
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. Any time the Base Rent increases during the
term of this Lease, Lessee shall upon written request from Lessor, deposit
additional monies with Lessor as an addition to the Security Deposit so that the
total amount of the Security Deposit shall at all times bear the same proportion
to the then current Base Rent as the initial Security Deposit bears to the
Initial Base Rent set forth in Paragraph 1.5. Lessor shall not be required to
keep all or any part of the Security Deposit separate from its general accounts.
Lessor shall, at the expiration or earlier termination of the term hereof and
after Lessee has vacated the Premises, return to Lessee (or, at Lessor's option,
to the last assignee, if any, of Lessee's interest herein), that portion of the
Security Deposit not used or applied by Lessor. Unless otherwise expressly
agreed in writing by Lessor, no part of the Security Deposit shall be considered
to be held in trust, to bear interest or other increment for 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 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 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 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: (i) potentially injurious to the public health, safety or welfare the
environment, or the Premises; (ii) regulated or monitored by any governmental
authority; or (iii) a basis for potential liability of Lessor to any
governmental agency or third party under any applicable statute or common law
theory. Hazardous 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 not 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 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