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                                                                  EXHIBIT 10.2.5

                          LEASE EXTENSION AND AMENDMENT

Re: Lease dated January 14, 1982 by and between Renault & Handley Employees
Investment Co Lessor, and Drexler Technology, Lessee, covering premises commonly
known as 2644 East Bayshore Frontage Road, Mountain View, California. Said Lease
was extended to terminate on May 31, 1992 by exercise of option, and further
extended by agreement dated February 16, 1989 to terminate on May 31, 1994. The
lease was further extended on June 3, 1991 to terminate on May 31, 1996 by
agreement. The lease was further extended to terminate on May 31, 2000 by a
Lease Extension & Amendment executed by the Lessor on September 2, 1994.

The above referenced Lease & Extension Agreement is hereby extended and amended
as follows:

1) The termination date shall be May 31, 2003. The rental amount for the period
commencing June 1, 2000 through May 31, 2003 shall be negotiated within 90 days
prior to June 1st, 2000 and shall be ninety six (96) percent of the average
rental for similar buildings as to size, improvements, and number of parking
spaces in the general vicinity of the herein demised premises.

2) The Lessee is granted the option of renewing the Lease for a three (3) year
period to commence on June 1, 2003 and to terminate on May 31, 2006. All of the
terms and conditions contained in the Lease and extensions thereof shall govern
the extension period excepting the monthly rental, and this option to renew. The
monthly rental shall be renegotiated using the following procedure: The rental
for the option period is to be the average rental for similar buildings, as to
size, improvements, and number of parking spaces in the general vicinity of the
herein demised premises. Only rentals which have been negotiated within a period
of twelve (12) months prior to the exercise date of this option shall be
considered for comparison purposes. In order to exercise this option, the Lessee
must give written notice to the Lessor a minimum of ninety (90) and a maximum of
one hundred twenty (120) days prior to May 31, 2003. This option may only be
exercised if the Lessee also exercises its option to lease the premises commonly
known as 2648 East Bayshore Road, Mountain View simultaneously. This option is
personal to Drexler Technology, and not transferable to any other entity without
the prior consent of the Lessor.

          LESSOR:                                        LESSEE:

RENAULT & HANDLEY EMPLOYEES                         DREXLER TECHNOLOGY
INVESTMENT CO.


By:     /s/ G.O. McKee                       By:    /s/ Steven G. Larson
     -----------------------------                 -----------------------------

Date:   12/02/97                             Date:   Nov 18, 1997
     -----------------------------                 -----------------------------


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<PAGE>   2

                          LEASE EXTENSION AND AMENDMENT


Re: Lease dated January 14, 1982 by and between Renault & Handley Employees
Investment Co Lessor, and Drexler Technology, Lessee, covering premises commonly
known as 2648 East Bayshore Frontage Road, Mountain View, California. Said Lease
was extended to terminate on May 31, 1992 by exercise of option, and further
extended by agreement dated February 16, 1989 to terminate on May 31, 1994. The
lease was further extended on June 3, 1991 to terminate on May 31, 1996 by
agreement. The lease was further extended to terminate on May 31, 2000 by a
Lease Extension & Amendment executed by the Lessor on September 2, 1994.

The above referenced Lease & Extension Agreement is hereby extended and amended
as follows:

1) The termination date shall be May 31, 2003. The rental amount for the period
commencing June 1, 2000 through May 31, 2003 shall be negotiated within 90 days
prior to June 1st, 2000 and shall be ninety six (96) percent of the average
rental for similar buildings as to size, improvements, and number of parking
spaces in the general vicinity of the herein demised premises.

2) The Lessee is granted the option of renewing the Lease for a three (3) year
period to commence on June 1, 2003 and to terminate on May 31, 2006. All of the
terms and conditions contained in the Lease and extensions thereof shall govern
the extension period excepting the monthly rental, and this option to renew. The
monthly rental shall be renegotiated using the following procedure: The rental
for the option period is to be the average rental for similar buildings, as to
size, improvements, and number of parking spaces in the general vicinity of the
herein demised premises. Only rentals which have been negotiated within a period
of twelve (12) months prior to the exercise date of this option shall be
considered for comparison purposes. In order to exercise this option, the Lessee
must give written notice to the Lessor a minimum of ninety (90) and a maximum of
one hundred twenty (120) days prior to May 31, 2003. This option may only be
exercised if the Lessee also exercises its option to lease the premises commonly
known as 2644 East Bayshore Road, Mountain View simultaneously. This option is
personal to Drexler Technology, and not transferable to any other entity without
the prior consent of the Lessor.

          LESSOR:                                        LESSEE:

RENAULT & HANDLEY EMPLOYEES                         DREXLER TECHNOLOGY
INVESTMENT CO.


By:     /s/ G.O. McKee                       By:    /s/ Steven G. Larson
     -----------------------------                 -----------------------------

Date:   12/02/97                             Date:   Nov 18, 1997
     -----------------------------                 -----------------------------


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