Document:

12312001 Form 10-K Exhbit 10.19

                                            Exhibit 10.19

INDUSTRIAL LEASE AGREEMENT

BETWEEN

Shelby Drive Corporation

AS LANDLORD

AND

Cell Genesys, Inc.

AS TENANT

INDUSTRIAL LEASE AGREEMENT

 

THIS LEASE AGREEMENT (the "Lease") is made as of the
"Lease Date" (as defined in Section 37 herein) by and between Shelby Drive
Corporation, a Florida corporation ("Landlord"), and Cell Genesys, Inc., a
California corporation ("Tenant") (the words "Landlord" and "Tenant" to include
their respective legal representatives, successors and permitted assigns where
the context requires or permits).

 

W I T N E S S E T H:

1.Basic Lease Provisions.  The following
constitute the basic provisions of this Lease:

(a)Demised Premises Address:4600 Shelby
Drive, Suite 108

    Memphis, Tennessee  38118

(b)Demised Premises Square Footage:
approximately 35,375 sq. ft.

(c)Building Square Footage:  approximately
111,250 sq. ft.

(d)Annual Base Rent:

Lease Year 1$122,043.75

Lease Year 2$122,043.75

Lease Year 3$122,043.75

Lease Year 4$134,425.00

Lease Year 5$134,425.00

Lease Year 6$143,268.75

Lease Year 7$143,268.75

(e)Monthly Base Rent Installments:

Lease Year 1$10,170.31

Lease Year 2$10,170.31

Lease Year 3$10,170.31

Lease Year 4$11,202.08

Lease Year 5$11,202.08

Lease Year 6$11,939.06

Lease Year 7$11,939.06

(f)Lease Commencement Date:  February 1, 2002

(g)Base Rent Commencement Date:  May 1, 2002

(h)Expiration Date:  April 30, 2009

(i)Primary Term:  Seven (7) years, three (3)
months

(j)Tenant's Operating Expense Percentage:  31.8%
(subject to adjustment in accordance with Special Stipulation 1).

(k)Security Deposit: $14,680.63

(l)Permitted Use: Light biopharmaceutical
manufacturing, processing, shipping and receiving of biopharmaceutical products
and substances required for such research and development, office and
administrative use related thereto and all reasonably incidental or
complementary purposes; provided, however, the Permitted Use (a) shall never
include any use prohibited by Section 16 of this Lease, (b) shall never extend
to or allow the use or storage of radioactive or biohazardous materials at the
Demised Premises other than the Permitted Hazardous Substances or any Additional
Permitted Hazardous Substances (as defined in Section 16), (c) shall never
include any heavy manufacturing, the manufacture or production of chemicals or
petroleum (or distillates thereof) or any other use wherein a Hazardous
Substance (as defined in Section 16) constitutes the principal or primary
product of the business to be conducted at the Demised Premises, (d) must not,
in the reasonable judgment of Landlord, result in a material risk of
Contamination (as defined in Section 16) at the Demised Premises.

(m)Address for notice:

Landlord:Shelby Drive
Corporation

c/o L & B Realty Advisors, Inc.

8750 N. Central Expressway

Suite 800

Dallas, Texas 75231

Attn: Mr. Ed Daley

Tenant:Cell Genesys, Inc.

342 Lakeside Drive

Foster City, California  94404

(n)Address for rental payments:

Shelby Drive Corporation

c/o IDI Services Group, Inc.

3424 Peachtree Road, N.E., Suite 1500

Atlanta, Georgia  30326

(o)Broker(s):   none

(p)Guarantor:none

2.Demised  Premises.  For and in consideration of the rent
hereinafter reserved and the mutual covenants hereinafter contained, Landlord
does hereby lease and demise unto Tenant, and Tenant does hereby hire, lease and
accept, from Landlord all upon the terms and conditions hereinafter set forth
the following premises, referred to as the "Demised Premises", as outlined on
Exhibit A-1 attached hereto and incorporated herein:  approximately
35,375 square feet of space, approximately 3,600 square feet of which is office
space, having an address as set forth in Section 1(a), located within Building M
(the "Building"), which contains a total of approximately 111,250 square feet
and is located within Southpark (the "Project"), located in Shelby County,
Tennessee.  

3.Term.  To have and to hold the Demised
Premises for a preliminary term (the "Preliminary Term") commencing on the Lease
Date and ending on the Lease Commencement Date as set forth in Section 1(f), and
a primary term (the "Primary Term") commencing on the Lease Commencement Date
and terminating on the Expiration Date as set forth in Section 1(h), as the
Lease Commencement Date and the Expiration Date may be revised pursuant to
Section 17 (the Preliminary Term, the Primary Term, and any and all extensions
thereof, herein referred to as the "Term").  The term "Lease Year", as used in
this Lease, shall mean the 12-month period commencing on the Base Rent
Commencement Date, and each 12-month period thereafter during the Term;
provided, however, that (i) the first Lease Year will include the
period between the Lease Commencement Date and the Base Rent Commencement Date,
if applicable, and (ii) if the Base Rent Commencement Date is a day other
than the first day of a calendar month, the first Lease Year shall include the
period between the Base Rent Commencement Date and the end of the calendar month
in which the Base Rent Commencement Date occurs and shall extend through the end
of the twelfth (12th) full calendar month following the Base Rent Commencement
Date.   

4.Base Rent.  Tenant shall pay to Landlord at
the address set forth in Section 1(n), as base rent for the Demised Premises,
commencing on the Base Rent Commencement Date and continuing throughout the Term
in lawful money of the United States, the annual amount set forth in Section
1(d) payable in equal monthly installments as set forth in Section 1(e) (the
"Base Rent"), payable in advance, without demand and without abatement,
reduction, set-off or deduction, on the first day of each calendar month during
the Term.  If the Base Rent Commencement Date shall fall on a day other than the
first day of a calendar month, the Base Rent shall be apportioned pro rata on a
per diem basis (i) for the period between the Base Rent Commencement Date and
the first day of the following calendar month (which pro rata payment shall be
due and payable on the Base Rent Commencement Date), and (ii) for the last
partial month of the Term, if applicable.  No payment by Tenant or receipt by
Landlord of rent hereunder shall be deemed to be other than on account of the
amount due, and no endorsement or statement on any check or any letter
accompanying any check or payment of rent shall be deemed an accord and
satisfaction, and Landlord may accept such check as payment without prejudice to
Landlord's right to recover the balance of such installment or payment of rent
or pursue any other remedies available to Landlord.

5.Security Deposit.  Upon Tenant's execution
of this Lease, Tenant will pay to Landlord the sum set forth in Section 1(k)
(the "Security Deposit") as security for the full and faithful performance by
Tenant of each and every term, covenant and condition of this Lease. The
acceptance by Landlord of the Security Deposit paid by Tenant shall not render
this Lease effective unless and until Landlord shall have executed and delivered
to Tenant a fully executed copy of this Lease.  The Security Deposit may be
commingled with Landlord's other funds or held by Landlord in a separate
interest bearing account, with interest paid to Landlord, as Landlord may elect.
In the event that Tenant is in default under this Lease, Landlord may retain
the security Deposit for the payment of any sum due Landlord or which Landlord
may expend or be required to expend by reason of Tenant's default or failure to
perform; provided, however, that any such retention by Landlord
shall not be or be deemed to be an election of remedies by Landlord or viewed as
liquidated damages, it being expressly understood and agreed that Landlord shall
have the right to pursue any and all other remedies available to it under the
terms of this Lease or otherwise.  In the event all or any portion of the
Security Deposit is so retained by Landlord, Tenant shall, within five (5)
business days of demand therefor from Landlord, replenish the Security Deposit
to the full amount set forth in Section 1(k).  In the event that Tenant shall
comply with all of the terms, covenants and conditions of this Lease, the
security deposit shall be returned to Tenant within thirty (30) days after the
later of (a) the Expiration Date or (b) the date that Tenant delivers possession
of the Demised Premises to Landlord.  In the event of a sale of the Building,
Landlord shall have the right to transfer the security deposit to the purchaser,
and upon acceptance by such purchaser, Landlord shall be released from all
liability for the return of the security deposit.  Tenant shall not assign or
encumber the money deposited as security, and neither Landlord nor its
successors or assigns shall be bound by any such assignment or encumbrance.

6.Operating Expenses and Additional Rent.

(a)Tenant agrees to pay as Additional Rent (as
defined in Section 6(b) below) its proportionate share of Operating Expenses (as
hereinafter defined).  "Operating Expenses" shall be defined as all reasonable
expenses for operation, repair, replacement and maintenance as necessary to keep
the Building and the common areas, driveways, and parking areas associated
therewith (collectively, the "Building Common Area") in good order, condition
and repair, including but not limited to, utilities for the Building Common
Area, expenses associated with the driveways and parking areas (including
sealing and restriping, and trash, snow and ice removal), security systems, fire
detection and prevention systems, lighting facilities, landscaped areas,
walkways, painting and caulking, directional signage, curbs, drainage strips,
sewer lines, all charges assessed against or attributed to the Building pursuant
to any applicable easements, covenants, restrictions, agreements, declaration of
protective covenants or development standards, property management fees, all
real property taxes and special assessments imposed upon the Building, the
Building Common Area and the land on which the Building and the Building Common
Area are constructed, all costs of insurance paid by Landlord with respect to
the Building and the Building Common Area, and costs of improvements to the
Building and the Building Common Area required by any law, ordinance or
regulation applicable to the Building and the Building Common Area generally
(and not because of the particular use of the Building or the Building Common
Area by a particular tenant), which cost shall be amortized on a straight line
basis over the useful life of such improvement, as reasonably determined by
Landlord.  Operating Expenses shall not include expenses for the costs of any
maintenance and repair required to be performed by Landlord at its own expense
under Section (10)(b).  Further, Operating Expenses shall not include the
costs for capital improvements unless such costs are incurred for the purpose of
causing a material decrease in the Operating Expenses of the Building or the
Building Common Area or are incurred with respect to improvements made to comply
with laws, ordinances or regulations as described above. The proportionate share
of Operating Expenses to be paid by Tenant shall be a percentage of the
Operating Expenses based upon the proportion that the square footage of the
Demised Premises bears to the total square footage of the Building (such figure
referred to as "Tenant's Operating Expense Percentage" and set forth in Section
1(j)).  Prior to or promptly after the beginning of each calendar year during
the Term, Landlord shall estimate the total amount of Operating Expenses to be
paid by Tenant during each such calendar year and Tenant shall pay to Landlord
one-twelfth (1/12) of such sum on the first day of each calendar month during
each such calendar year, or part thereof, during the Term.  Within a reasonable
time after the end of each calendar year, Landlord shall submit to Tenant a
statement of the actual amount of Operating Expenses for such calendar year, and
the actual amount owed by Tenant, and within thirty (30) days after receipt of
such statement, Tenant shall pay any deficiency between the actual amount owed
and the estimates paid during such calendar year, or in the event of
overpayment, Landlord shall credit the amount of such overpayment toward the
next installment of Operating Expenses owed by Tenant or remit such overpayment
to Tenant if the Term has expired or has been terminated and no Event of Default
exists hereunder.  The obligations in the immediately preceding sentence shall
survive the expiration or any earlier termination of this Lease.  If the Lease
Commencement Date shall fall on other than the first day of the calendar year,
and/or if the Expiration Date shall fall on other than the last day of the
calendar year, Tenant's proportionate share of the Operating Expenses for such
calendar year shall be apportioned prorata.

(b)Any amounts required to be paid by Tenant
hereunder (in addition to Base Rent) and any charges or expenses incurred by
Landlord on behalf of Tenant under the terms of this Lease shall be considered
"Additional Rent" payable in the same manner and upon the same terms and
conditions as the Base Rent reserved hereunder except as set forth herein to the
contrary.  Any failure on the part of Tenant to pay such Additional Rent when
and as the same shall become due shall entitle Landlord to the remedies
available to it for non-payment of Base Rent.  Tenant's obligations for payment
of Additional Rent shall begin to accrue on the Lease Commencement Date
regardless of the Base Rent Commencement Date.

(c)If applicable in the jurisdiction where the
Demised Premises are located, Tenant shall pay and be liable for all rental,
sales, use and inventory taxes or other similar taxes, if any, on the amounts
payable by Tenant hereunder levied or imposed by any city, state, county or
other governmental body having authority, such payments to be in addition to all
other payments required to be paid Landlord by Tenant under the terms of this
Lease.  Such payment shall be made by Tenant directly to such governmental body
if billed to Tenant, or if billed to Landlord, such payment shall be paid
concurrently with the payment of the Base Rent, Additional Rent, or such other
charge upon which the tax is based, all as set forth herein.

7.Use of Demised Premises.

(a)The Demised Premises shall be used for the
Permitted Use set forth in Section 1(l) and for no other purpose.

(b)Tenant will permit no liens to attach or exist
against the Demised Premises which are not satisfied or bonded within fifteen
(15) days of such attachment, and shall not commit any waste.

(c)The Demised Premises shall not be used for any
illegal purposes, and Tenant shall not allow, suffer, or permit any vibration,
noise, odor, light or other effect to occur within or around the Demised
Premises that could constitute a nuisance or trespass for Landlord or any
occupant of the Building or an adjoining building, its customers, agents, or
invitees.  Upon notice by Landlord to Tenant that any of the aforesaid
prohibited uses are occurring, Tenant agrees to promptly remove or control the
same.

(d)Tenant shall not in any way violate any law,
ordinance or restrictive covenant affecting the Demised Premises, and shall not
in any manner use the Demised Premises so as to cause cancellation of, prevent
the use of, or increase the rate of, the fire and extended coverage insurance
policy required hereunder.  Landlord makes no (and does hereby expressly
disclaim any) covenant, representation or warranty as to the Permitted Use being
allowed by or being in compliance with any applicable laws, rules, ordinances or
restrictive covenants now or hereafter affecting the Demised Premises, and any
zoning letters, copies of zoning ordinances or other information from any
governmental agency or other third party provided to Tenant by Landlord or any
of Landlord's agents or employees shall be for informational purposes only,
Tenant hereby expressly acknowledging and agreeing that Tenant shall conduct and
rely solely on its own due diligence and investigation with respect to the
compliance of the Permitted Use with all such applicable laws, rules, ordinances
and restrictive covenants and not on any such information provided by Landlord
or any of its agents or employees.

(e)In the event insurance premiums pertaining to
the Demised Premises, the Building, or the Building Common Area, whether paid by
Landlord or Tenant, are increased over the least hazardous rate available due to
the nature of the use of the Demised Premises by Tenant, Tenant shall pay such
additional amount as Additional Rent.

8.Insurance.

(a)Tenant covenants and agrees that from and
after the Lease Commencement Date or any earlier date upon which Tenant enters
or occupies the Demised Premises or any portion thereof, Tenant will carry and
maintain, at its sole cost and expense, the following types of insurance, in the
amounts specified and in the form hereinafter provided for:

(i)Liability insurance in the Commercial
General Liability form (including Broad Form Property Damage and Contractual
Liabilities or reasonable equivalent thereto) covering the Demised Premises and
Tenant's use thereof against claims for bodily injury or death, property damage
and product liability occurring upon, in or about the Demised Premises, such
insurance to be written on an occurrence basis (not a claims made basis), to be
in combined single limits amounts not less than $5,000,000.00 and to have
general aggregate limits of not less than $6,000,000.00 for each policy year.
The insurance coverage required under this Section 8(a)(i) shall, in addition,
extend to any liability of Tenant arising out of the indemnities provided for in
Section 11 and, if necessary, the policy shall contain a contractual endorsement
to that effect.

(ii)Insurance covering (A) all of the
Improvements (as defined in Section 17 hereof), including but not limited to
demising walls and the heating, ventilating and air conditioning system, whether
installed by or at the expense of Landlord or Tenant, and (B) Tenant's trade
fixtures, merchandise and personal property from time to time in, on or upon the
Demised Premises, in an amount not less than one hundred percent (100%) of their
full replacement value from time to time during the Term, providing protection
against perils included within the standard form of "all-risks" fire and
casualty insurance policy, together with insurance against sprinkler damage,
vandalism and malicious mischief.  Any policy proceeds from such insurance
relating to the Improvements shall be used solely for the repair, construction
and restoration or replacement of the Improvements damaged or destroyed unless
this Lease shall cease and terminate under the provisions of
Section 20.

(b)All policies of the insurance provided for in
Section 8(a) shall be issued in form reasonably acceptable to Landlord by
insurance companies with a rating of not less than "A," and financial size of
not less than Class XII, in the most current available "Best's Insurance
Reports", and licensed to do business in the state in which the Building is
located.  Each and every such policy:

(i)shall name Landlord, Lender (as defined in
Section 24), and any other party reasonably designated by Landlord, as an
additional insured.  In addition, the coverage described in
Section 8(a)(ii)(A) relating to the Improvements shall also name Landlord
as "loss payee";

(ii)shall be delivered to Landlord, in the
form of an insurance certificate acceptable to Landlord as evidence of such
policy, prior to the Lease Commencement Date and thereafter within thirty (30)
days prior to the expiration of each such policy, and, as often as any such
policy shall expire or terminate.  Renewal or additional policies shall be
procured and maintained by Tenant in like manner and to like extent;

(iii)shall contain a provision that the
insurer will give to Landlord and such other parties in interest at least thirty
(30) days notice in writing in advance of any material change, cancellation,
termination or lapse, or the effective date of any reduction in the amounts of
insurance; and

(iv)shall be written as a primary policy
which does not contribute to and is not in excess of coverage which Landlord may
carry.

(c)In the event that Tenant shall fail to carry
and maintain the insurance coverages set forth in this Section 8, Landlord may
upon thirty (30) days notice to Tenant (unless such coverages will lapse in
which event no such notice shall be necessary) procure such policies of
insurance and Tenant shall promptly reimburse Landlord therefor.

(d)Landlord and Tenant hereby waive any rights
each may have against the other on account of any loss or damage occasioned to
Landlord or Tenant, as the case may be, their respective property, the Demised
Premises, its contents or to the other portions of the Building, arising from
any risk covered by all risks fire and extended coverage insurance of the type
and amount required to be carried hereunder, provided that such waiver does not
invalidate such policies or prohibit recovery thereunder.  The parties hereto
shall cause their respective insurance companies insuring the property of either
Landlord or Tenant against any such loss, to waive any right of subrogation that
such insurers may have against Landlord or Tenant, as the case may be.

9.Utilities.  During the Term, Tenant shall
promptly pay as billed to Tenant all rents and charges for water and sewer
services and all costs and charges for gas, steam, electricity, fuel, light,
power, telephone, heat and any other utility or service used or consumed in or
servicing the Demised Premises and all other costs and expenses involved in the
care, management and use thereof.  To the extent reasonably possible, such
utilities shall be separately metered and billed to Tenant.  In the event any
such utilities are separately metered, Tenant's obligation for payment of such
utilities shall commence as of the date of Tenant's actual occupancy of all or
any portion of the Demised Premises, including any period of occupancy prior to
the Lease Commencement Date, regardless of whether or not Tenant conducts
business operations during such period of occupancy.  Any utilities which are
not separately metered shall be billed to Tenant by Landlord at Landlord's
actual cost.  In the event Tenant's use of any utility not metered is in excess
of the average use by other tenants, Landlord shall have the right to install a
meter for such utility, at Tenant's expense, and bill Tenant for Tenant's actual
use.  If Tenant fails to pay any utility bills or charges, Landlord may, at its
option and upon reasonable notice to Tenant, pay the same and in such event, the
amount of such payment, together with interest thereon at the Interest Rate as
defined in Section 32 from the date of such payment by Landlord, will be added
to Tenant's next due payment as Additional Rent.

10.Maintenance and Repairs.

(a)Tenant shall, at its own cost and expense,
maintain in good condition and repair and replace as necessary the interior of
the Demised Premises, including but not limited to the heating, air conditioning
and ventilation systems, glass, windows and doors, sprinkler, all plumbing and
sewage systems, fixtures, interior walls, floors (including floor slabs),
ceilings, storefronts, plate glass, skylights, all electrical facilities and
equipment including, without limitation, lighting fixtures, lamps, fans and any
exhaust equipment and systems, electrical motors, and all other appliances and
equipment (including, without limitation, dock levelers, dock shelters, dock
seals and dock lighting) of every kind and nature located in, upon or about the
Demised Premises, except as to such maintenance, repair and replacement as is
the obligation of Landlord pursuant to Section 10(b).  During the Term, Tenant
shall either (a) maintain in full force and effect a service contract for the
maintenance of the heating, ventilation and air conditioning systems with an
entity reasonably acceptable to Landlord or (b) provide for the maintenance of
the heating, ventilation and air conditioning systems with its own employees so
long as such employees are qualified (as reasonably evidenced to Landlord) and
provided that, if Landlord, in its reasonable opinion deems such maintenance at
any time throughout the Term to be inadequate or inefficient, then Tenant shall,
at Landlord's request, enter into a service contract as required in part (a)
above.  Tenant shall deliver to Landlord (i) a copy of said service contract
prior to the Lease Commencement Date, and (ii) thereafter, a copy of a renewal
or substitute service contract within thirty (30) days prior to the expiration
of the existing service contract.  Tenant's obligation shall exclude any
maintenance, repair and replacement required because of the act or negligence of
Landlord, its employees, contractors or agents, which shall be the
responsibility of Landlord.

(b)Landlord shall, at its own cost and expense,
maintain in good condition and repair the roof, foundation (beneath the floor
slab) and structural frame of the Building.  Landlord's obligation shall exclude
the cost of any maintenance or repair required because of the act or negligence
of Tenant or any of Tenant's or such subsidiaries' or affiliates' agents,
contractors, employees, licensees and invitees (collectively, "Tenant's
Affiliates"), the cost of which shall be the responsibility of Tenant.

(c)Unless the same is caused solely by the
negligent action or inaction of Landlord, its employees or agents, and is not
covered by the insurance required to be carried by Tenant pursuant to the terms
of this Lease, Landlord shall not be liable to Tenant or to any other person for
any damage occasioned by failure in any utility system or by the bursting or
leaking of any vessel or pipe in or about the Demised Premises, or for any
damage occasioned by water coming into the Demised Premises or arising from the
acts or neglects of occupants of adjacent property or the public.

11.Tenant's Personal Property; Indemnity.
All of Tenant's personal property in the Demised Premises shall be and remain at
Tenant's sole risk.  Landlord, its agents, employees and contractors, shall not
be liable for, and Tenant hereby releases Landlord from, any and all liability
for theft thereof or any damage thereto occasioned by any act of God or by any
acts, omissions or negligence of any persons.  Landlord, its agents, employees
and contractors, shall not be liable for any injury to the person or property of
Tenant or other persons in or about the Demised Premises, Tenant expressly
agreeing to indemnify and save Landlord, its agents, employees and contractors,
harmless, in all such cases, except, in the case of personal injury only, to the
extent caused by the negligence of Landlord, its agents, employees and
contractors.  Tenant further agrees to indemnify and reimburse Landlord for any
costs or expenses, including, without limitation, attorneys' fees, that Landlord
reasonably may incur in investigating, handling or litigating any such claim
against Landlord by a third person, unless such claim arose from the negligence
of Landlord, its agents, employees or contractors.  The provisions of this
Section 11 shall survive the expiration or earlier termination of this Lease
with respect to any damage, injury or death occurring before such expiration or
termination.

12.Tenant's Fixtures.  Tenant shall have the
right to install in the Demised Premises trade fixtures required by Tenant or
used by it in its business, and if installed by Tenant, to remove any or all
such trade fixtures from time to time during the Term of this Lease, provided no
Event of Default, as defined in Section 22, then exists; provided,
however, that (i) Tenant shall repair and restore any damage or injury to
the Demised Premises (to the condition in which the Demised Premises existed
prior to such installation) caused by the installation and/or removal of any
such trade fixtures, and (ii) upon or prior to the expiration of the Term,
Tenant shall have the obligation (as opposed to the right) to perform such
removal, repair and restoration, subject to and in accordance with Section 30(b)
hereof.

13.Signs.  No sign, advertisement or notice
shall be inscribed, painted, affixed, or displayed on the windows or exterior
walls of the Demised Premises or on any public area of the Building, except in
such places, numbers, sizes, colors and styles as are approved in advance in
writing by Landlord, such approval not to be unreasonably withheld, and which
conform to all applicable laws, ordinances, or covenants affecting the Demised
Premises.  Any and all signs installed or constructed by or on behalf of Tenant
pursuant hereto shall be installed, maintained and removed by Tenant at Tenant's
sole cost and expense.

14.Landlord's Lien.  Notwithstanding any other
provision hereof to the contrary, Tenant does hereby grant to Landlord, and
Landlord shall have at all times, a security interest in and a valid first lien
upon all of the personal property and trade fixtures of Tenant situated in and
upon the Demised Premises to secure the obligations of Tenant for all Base Rent,
Additional Rent and other sums to become due hereunder and the performance by
Tenant of each and all of Tenant's other covenants and obligations hereunder.
The security interest and lien granted herein may be foreclosed in the manner
and form provided by law for the foreclosure of chattel mortgages or in any
other manner provided or permitted by law. Landlord does hereby agree to
subordinate the lien granted herein, as well as any statutory lien granted to
Landlord, to the lien of any institutional lender providing purchase money
financing to Tenant that is secured by Tenant's trade fixtures, equipment,
inventory or other personal property located at the Demised Premises, all
pursuant to a landlord lien subordination agreement in form and substance
reasonably satisfactory to Landlord.

15.Governmental Regulations.  Tenant shall
promptly comply throughout the Term, at Tenant's sole cost and expense, with all
present and future laws, ordinances, orders, rules, regulations or requirements
of all federal, state and municipal governments and appropriate departments,
commissions, boards and officers thereof (collectively, "Governmental
Requirements") relating to (a) all or any part of the Demised Premises, and (b)
the use or manner of use of the Demised Premises and the Building Common Area.
Tenant shall also observe and comply with the requirements of all policies of
public liability, fire and other policies of insurance at any time in force with
respect to the Demised Premises.  Without limiting the foregoing, if as a result
of one or more Governmental Requirements it is necessary, from time to time
during the Term, to perform an alteration or modification of the Demised
Premises or the Building Common Area (a "Code Modification") which is made
necessary as a result of the specific use being made by Tenant of the Demised
Premises, then such Code Modification shall be the sole and exclusive
responsibility of Tenant in all respects; any such Code Modification shall be
promptly performed by Tenant at its expense in accordance with the applicable
Governmental Requirement and with Section 18 hereof.  If as a result of one or
more Governmental Requirements it is necessary from time to time during the Term
to perform a Code Modification which (i) would be characterized as a capital
expenditure under generally accepted accounting principles and (ii) is not
made necessary as a result of the specific use being made by Tenant of the
Demised Premises (as distinguished from an alteration or modification which
would be required to be made by the owner of any warehouse-office building
comparable to the Building irrespective of the use thereof by any particular
occupant), then (a) Landlord shall have the obligation to perform the Code
Modification at its expense, (b) the cost of such Code Modification shall be
amortized on a straight-line basis over the useful life of the item in question,
as reasonably determined by Landlord, and (c) Tenant shall be obligated to pay
(as Additional Rent, payable in the same manner and upon the same terms and
conditions as the Base Rent reserved hereunder) for the portion of such
amortized costs attributable to the remainder of the Term, including any
extensions thereof.  Tenant shall promptly send to Landlord a copy of any
written notice received by Tenant requiring a Code Modification.

16.Environmental Matters.

(a)For purposes of this Lease:

(i)"Contamination" as used herein means
the presence of or release of Hazardous Substances (as hereinafter defined) into
any environmental media from, upon, within, below, into or on any portion of the
Demised Premises, the Building, the Building Common Area or the Project so as to
require remediation, cleanup or investigation under any applicable Environmental
Law (as hereinafter defined).

(ii)"Environmental Laws" as used herein
means all federal, state, and local laws, regulations, orders, permits,
ordinances or other requirements, which exist now or as may exist hereafter,
concerning protection of human health, safety and the environment, all as may be
amended from time to time.

(iii)"Hazardous Substances" as used
herein means any hazardous or toxic substance, material, chemical, pollutant,
contaminant or waste as those terms are defined by any applicable Environmental
Laws (including, without limitation, the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. 9601 et seq. ("CERCLA") and the
Resource Conservation and Recovery Act, 42 U.S.C. 6901 et seq. ["RCRA"]) and any
solid wastes, polychlorinated biphenyls, urea formaldehyde, asbestos,
radioactive materials, radon, explosives, petroleum products and oil.

(b)Landlord represents that, except as revealed
to Tenant in writing by Landlord, to Landlord's actual knowledge, Landlord has
not treated, stored or disposed of any Hazardous Substances upon or within the
Demised Premises, nor, to Landlord's actual knowledge, has any predecessor owner
of the Demised Premises.

(c)Tenant covenants that all its activities, and
the activities of Tenant's Affiliates (as defined in Section 10(b)), on the
Demised Premises, the Building, or the Project during the Term will be conducted
in compliance with Environmental Laws.  Tenant warrants that it is currently in
compliance with all applicable Environmental Laws and that there are no pending
or threatened notices of deficiency, notices of violation, orders, or judicial
or administrative actions involving alleged violations by Tenant of any
Environmental Laws.  Tenant, at Tenant's sole cost and expense, shall be
responsible for obtaining all permits or licenses or approvals under
Environmental Laws necessary for Tenant's operation of its business on the
Demised Premises and shall make all notifications and registrations required by
any applicable Environmental Laws.  Tenant, at Tenant's sole cost and expense,
shall at all times comply with the terms and conditions of all such permits,
licenses, approvals, notifications and registrations and with any other
applicable Environmental Laws.  Tenant warrants and agrees that, prior to its
receipt of its certificate of occupancy and prior to causing any Hazardous
Materials to be brought onto the Building or Project, it will have obtained all
such permits, licenses or approvals and made all such notifications and
registrations required by any applicable Environmental Laws necessary for
Tenant's operation of its business on the Demised Premises.

(d)Except for the Permitted Hazardous Substances
and any Additional Permitted Hazardous Substances (as those terms are
hereinafter defined), Tenant shall not cause or permit any Hazardous Substances
to be brought upon, kept or used in or about the Demised Premises, the Building,
or the Project without the prior written consent of Landlord, which consent
shall not be unreasonably withheld; provided, however, that the
consent of Landlord shall not be required for the use at the Demised Premises of
cleaning supplies, toner for photocopying machines and other similar materials,
in containers and quantities reasonably necessary for and consistent with normal
and ordinary use by Tenant in the routine operation or maintenance of Tenant's
office equipment or in the routine janitorial service, cleaning and maintenance
for the Demised Premises.  For purposes of this Section 16, Landlord shall be
deemed to have reasonably withheld consent if Landlord determines that the
presence of such Hazardous Substance within the Demised Premises could result in
a risk of harm to person or property or otherwise negatively affect the value or
marketability of the Building or the Project.  Landlord acknowledges and agrees
that any Hazardous Substances which are listed on Exhibit "F" attached
hereto and incorporated herein may be used by Tenant at the Demised Premises in
connection with the Permitted Use, in the quantities described in
Exhibit "F", without the consent of Landlord and are hereinafter
referred to collectively as the "Permitted Hazardous Substances".  Tenant hereby
represents that the Hazardous Substances described on Exhibit "F"
are reasonably required for the conduct of the Permitted Use or the maintenance
of the Demised Premises.  So long as the use of the Additional Permitted
Hazardous Substances is not prohibited under subsection (f) of this
Section 16, Tenant shall have the right, with the prior consent of Landlord
which shall not be unreasonably withheld, to add to the list of Permitted
Hazardous Substances such additional Hazardous Substances ("Additional Permitted
Hazardous Substances") as Tenant deems necessary to conduct the Permitted Use,
subject to compliance with all the requirements of this Section 16.  Prior
to using any Additional Permitted Hazardous Substances in the Demised Premises,
Tenant shall notify Landlord in writing of the nature of such Additional
Permitted Hazardous Substances and shall, at the expense of Tenant, cause to be
prepared an environmental management plan (the "Plan"), for the Additional
Permitted Hazardous Substances, by either (i) an employee of Tenant whose
qualifications to prepare the Plan must be reasonably acceptable to Landlord or
(ii) an environmental consultant reasonably acceptable to Landlord (as
applicable, the "Environmental Consultant").  Such Plan shall detail the steps
which Tenant must take to be in compliance with all applicable Environmental
Laws and to handle the Additional Permitted Hazardous Substances in a safe and
prudent manner.  Tenant agrees that Tenant will use the Additional Permitted
Hazardous Substances in accordance with the Plan.  Landlord shall have the right
(at the expense of Landlord except as hereinafter expressly provided), upon
giving two business days prior written notice to Tenant, to cause an
environmental consultant (which will be the Environmental Consultant unless such
person is an employee or affiliate of Tenant) to inspect the Demised Premises
semi-annually for the purpose of ascertaining compliance with the Plan.
Landlord shall provide to Tenant any written report delivered to Landlord by its
environmental consultant as a result of any such inspection.  If, on the basis
of such written compliance report, it is determined that Tenant has failed to
comply in any material respect with the Plan, Tenant shall be responsible for
reimbursing Landlord for the fees and expenses of its environmental consultant
actually incurred by Landlord (in addition to all other duties and
responsibilities of Tenant under this Section 16 which may relate to the
non-compliance with the Plan).

(e)Tenant shall not cause or permit the release
of any Hazardous Substances by Tenant or Tenant's Affiliates into any
environmental media such as air, water or land, or into or on the Demised
Premises, the Building or the Project in any manner that violates any
Environmental Laws.  If such release shall occur, Tenant shall (i) take all
steps reasonably necessary to contain and control such release and any
associated Contamination, (ii) clean up or otherwise remedy such release
and any associated Contamination to the extent required by, and take any and all
other actions required under, applicable Environmental Laws and
(iii) notify and keep Landlord reasonably informed of such release and
response.

(f)Regardless of any consents granted by Landlord
pursuant to Section 16(d) allowing Hazardous Substances upon the Demised
Premises, Tenant shall under no circumstances whatsoever cause or permit
(i) any activity on the Demised Premises which would cause the Demised
Premises to become subject to regulation as a hazardous waste treatment, storage
or disposal facility under RCRA or the regulations promulgated thereunder,
(ii) the discharge of Hazardous Substances into the storm sewer system
serving the Project or (iii) the installation of any underground storage
tank or underground piping on or under the Demised Premises.

(g)Tenant shall and hereby does indemnify
Landlord and hold Landlord harmless from and against any and all expense, loss,
and liability suffered by Landlord (except to the extent that such expenses,
losses, and liabilities arise out of Landlord's own negligence or willful act),
by reason of the  storage, generation, release, handling, treatment,
transportation, disposal, or arrangement for transportation or disposal, of any
Hazardous Substances (whether accidental, intentional, or negligent) by Tenant
or Tenant's Affiliates or by reason of Tenant's breach of any of the provisions
of this Section 16.  Such expenses, losses and liabilities shall include,
without limitation, (i) any and all expenses that Landlord may incur to
comply with any Environmental Laws; (ii) any and all costs that Landlord
may incur in studying or remedying any Contamination at or arising from the
Demised Premises, the Building, or the Project; (iii) any and all costs
that Landlord may incur in studying, removing, disposing or otherwise addressing
any Hazardous Substances; (iv) any and all fines, penalties or other
sanctions assessed upon Landlord; and (v) any and all legal and
professional fees and costs incurred by Landlord in connection with the
foregoing.  The indemnity contained herein shall survive the expiration or
earlier termination of this Lease.

17.Construction of Improvements.

(a)Tenant shall be responsible for constructing
the interior improvements within the Demised Premises (the "Improvements").
Tenant's proposed architect/engineer and construction contractor is subject to
Landlord's prior approval, which approval shall not be unreasonably withheld or
delayed.  At least two weeks prior to obtaining its construction permits from
the applicable governmental entity,  Tenant shall, at its sole cost and expense,
prepare and submit to Landlord for Landlord's written approval or disapproval
(which approval will not be unreasonably withheld or conditioned) a complete set
of plans and specifications and construction drawings (collectively, the "Plans
and Specifications") covering all work to be performed by Tenant in constructing
the Improvements.  The Plans and Specifications shall be in such detail as
Landlord may reasonably require and shall be in compliance with all applicable
statutes, ordinances and regulations; provided, however, that Landlord's
approval of the Plans and Specifications shall not be deemed to be a warranty or
representation that the Plans and Specifications comply with all applicable
statutes, ordinances and regulations.  Landlord shall review the Plans and
Specifications and indicate requested changes, if any, by written notice to
Tenant, within fifteen (15) days after receipt of the Plans and Specifications
by Landlord.  If Landlord fails to indicate such requested changes to the Plans
and Specifications by such date, the Plans and Specifications shall be deemed
approved.  Thereafter, any changes to the Plans and Specifications shall be
subject to Landlord's written approval.

(b)Landlord shall deliver the Demised Premises
onthe Lease Date.  Tenant hereby expressly acknowledges and agrees that it
accepts, and shall be deemed to have accepted, the Demised Premises AS IS, WHERE
IS, and as suitable for the purposes for which the same are leased hereby.
Tenant's acceptance of the Demised Premises prior to the Lease Commencement Date
shall not be deemed to create an obligation to pay Base Rent or Additional Rent
prior to the dates set forth herein, provided that Tenant shall otherwise comply
with all of the terms and conditions of this Lease upon acceptance of the
Demised Premises. 

(c)Tenant or its contractor shall construct the
Improvements in a good, lien free, first-class and workmanlike manner and in
accordance with the Plans and Specifications.  Tenant shall carry, or cause its
contractor to carry, insurance reasonably satisfactory to Landlord throughout
the construction of the Improvements.  If Tenant shall fail to complete the
Improvements by the Base Rent Commencement Date, Tenant's obligation to pay rent
hereunder shall nevertheless begin on the Base Rent Commencement Date. 

(d)Upon substantial completion of the
Improvements, a representative of Landlord and a representative of Tenant
together shall inspect the Demised Premises and generate a punchlist of
defective or uncompleted items relating to the completion of construction of the
Improvements.  Tenant shall, within a reasonable time after such punchlist is
prepared and agreed upon by Landlord and Tenant, complete such incomplete work
and remedy such defective work as are set forth on the punchlist. 

(e)Landlord shall reimburse Tenant for Tenant's
costs (as defined in subsection (f) below) incurred in constructing the
Improvements, up to an amount equal to $29,288.70 (the "Tenant Allowance") at
such time as Tenant or its contractor has: 

(i)substantially completed the Improvements and received and
delivered to Landlord a certificate of occupancy from the applicable governing
authority; 

(ii)delivered to Landlord lien waivers and affidavits from
Tenant's contractor, all subcontractors, and all laborers or materials suppliers
having performed any work at the Demised Premises relating to the Improvements,
together with any other evidence reasonably required by Landlord to satisfy
Landlord's title insurer that there are no parties entitled to file a lien
against the real property underlying the Project in connection with such work;
and 

(iii)delivered to Landlord all invoices, receipts and other
evidence reasonably required by Landlord to evidence the cost of the
Improvements.

(f)Tenant's costs for construction of the Improvements shall
include the cost of the Plans and Specifications, and all tenant buildout,
including, without limitation, demising walls, utilities, the heating,
ventilating and air conditioning system.  IDI Services Group, Landlord's
property manager, shall be entitled to a construction management fee in the
amount of $1,394.70, which amount shall be deducted from the Tenant
Allowance.

(g)Tenant shall be responsible for all costs of
construction of the Improvements in excess of the Tenant Allowance.

18.Tenant Alterations and Additions.  

(a)  Following completion of the initial Improvements
in accordance with Section 17 above, Tenant shall not make or permit to be made
any alterations, improvements, or additions to the Demised Premises (a "Tenant's
Change"), without first obtaining on each occasion Landlord's prior written
consent (which consent Landlord agrees not to unreasonably withhold) and
Lender's prior written consent (if such consent is required).  As part of its
approval process, Landlord may require that Tenant submit plans and
specifications to Landlord, for Landlord's approval or disapproval, which
approval shall not be unreasonably withheld.  All Tenant's Changes shall be
performed in accordance with all legal requirements applicable thereto and in a
good and workmanlike manner with first-class materials.  Tenant shall maintain
insurance reasonably satisfactory to Landlord during the construction of all
Tenant's Changes.  If Landlord at the time of giving its approval to any
Tenant's Change notifies Tenant in writing that approval is conditioned upon
restoration, then Tenant shall, at its sole cost and expense and at Landlord's
option upon the termination or expiration of this Lease, remove the same and
restore the Demised Premises to its condition prior to such Tenant's Change.  No
Tenant's Change shall be structural in nature or impair the structural strength
of the Building or reduce its value.  Tenant shall pay the full cost of any
Tenant's Change and shall give Landlord such reasonable security as may be
requested by Landlord to insure payment of such cost.  Except as otherwise
provided herein and in Section 12, all Tenant's Changes and all repairs and all
other property attached to or installed on the Demised Premises by or on behalf
of Tenant shall immediately upon completion or installation thereof be and
become part of the Demised Premises and the property of Landlord without payment
therefor by Landlord and shall be surrendered to Landlord upon the expiration or
earlier termination of this Lease.

(b)To the extent permitted by law, all of
Tenant's contracts and subcontracts for such Tenant's Changes shall provide that
no lien shall attach to or be claimed against the Demised Premises or any
interest therein other than Tenant's leasehold interest in the Demised Premises,
and that all subcontracts let thereunder shall contain the same provision.
Whether or not Tenant furnishes the foregoing, Tenant agrees to hold Landlord
harmless against all liens, claims and liabilities of every kind, nature and
description which may arise out of or in any way be connected with such work.
Tenant shall not permit the Demised Premises to become subject to any
mechanics', laborers' or materialmen's lien on account of labor, material or
services furnished to Tenant or claimed to have been furnished to Tenant in
connection with work of any character performed or claimed to have been
performed for the Demised Premises by, or at the direction or sufferance of
Tenant and if any such liens are filed against the Demised Premises, Tenant
shall promptly discharge the same; provided, however, that Tenant
shall have the right to contest, in good faith and with reasonable diligence,
the validity of any such lien or claimed lien if Tenant shall give to Landlord,
within fifteen days after demand, such security as may be reasonably
satisfactory to Landlord to assure payment thereof and to prevent any sale,
foreclosure, or forfeiture of Landlord's interest in the Demised Premises by
reason of non-payment thereof; provided further that on final determination of
the lien or claim for lien, Tenant shall immediately pay any judgment rendered,
with all proper costs and charges, and shall have the lien released and any
judgment satisfied.  If Tenant fails to post such security or does not
diligently contest such lien, Landlord may, without investigation of the
validity of the lien claim, discharge such lien and Tenant shall reimburse
Landlord upon demand for all costs and expenses incurred in connection
therewith, which expenses shall include any attorneys' fees, paralegals' fees
and any and all costs associated therewith, including litigation through all
trial and appellate levels and any costs in posting bond to effect a discharge
or release of the lien.  Nothing contained in this Lease shall be construed as a
consent on the part of Landlord to subject the Demised Premises to liability
under any lien law now or hereafter existing of the state in which the Demised
Premises are located

19.Services by Landlord.  Landlord shall be
responsible for providing for maintenance of the Building Common Area, and,
except as required by Section 10(b) hereof or as otherwise specifically provided
for herein, Landlord shall be responsible for no other services whatsoever.
Tenant, by payment of Tenant's share of the Operating Expenses, shall pay
Tenant's pro rata share of the expenses incurred by Landlord hereunder.

20.Fire and Other Casualty.  In the event the
Demised Premises are damaged by fire or other casualty insured by Landlord,
Landlord agrees to promptly restore and repair the Demised Premises at
Landlord's expense, including the Improvements to be insured by Tenant but only
to the extent Landlord receives insurance proceeds therefor, including the
proceeds from the insurance required to be carried by Tenant on the
Improvements.  Notwithstanding the foregoing, in the event that the Demised
Premises are (i) in the reasonable opinion of Landlord, so destroyed that
they cannot be repaired or rebuilt within two hundred seventy (270) days after
the date of such damage; or (ii) destroyed by a casualty which is not
covered by Landlord's insurance, or if such casualty is covered by Landlord's
insurance but Lender or other party entitled to insurance proceeds fails to make
such proceeds available to Landlord in an amount sufficient for restoration of
the Demised Premises, then Landlord shall give written notice to Tenant of such
determination (the "Determination Notice") within sixty (60) days of such
casualty.  Either Landlord or Tenant may terminate and cancel this Lease
effective as of the date of such casualty by giving written notice to the other
party within thirty (30) days after Tenant's receipt of the Determination
Notice.  Upon the giving of such termination notice, all obligations hereunder
with respect to periods from and after the effective date of termination shall
thereupon cease and terminate.  If no such termination notice is given, Landlord
shall, to the extent of the available insurance proceeds, make such repair or
restoration of the Demised Premises to the approximate condition existing prior
to such casualty, promptly and in such manner as not to unreasonably interfere
with Tenant's use and occupancy of the Demised Premises (if Tenant is still
occupying the Demised Premises).  Base Rent and Additional Rent shall
proportionately abate during the time that the Demised Premises or any part
thereof are unusable by reason of any such damage thereto.

21.Condemnation.

(a)If all of the Demised Premises is taken or
condemned for a public or quasi-public use, or if a material portion of the
Demised Premises is taken or condemned for a public or quasi-public use and the
remaining portion thereof is not usable by Tenant in the reasonable opinion of
Landlord, this Lease shall terminate as of the earlier of the date title to the
condemned real estate vests in the condemnor or the date on which Tenant is
deprived of possession of the Demised Premises.  In such event, the Base Rent
herein reserved and all Additional Rent and other sums payable hereunder shall
be apportioned and paid in full by Tenant to Landlord to that date, all Base
Rent, Additional Rent and other sums payable hereunder prepaid for periods
beyond that date shall forthwith be repaid by Landlord to Tenant, and neither
party shall thereafter have any liability hereunder, except that any obligation
or liability of either party, actual or contingent, under this Lease which has
accrued on or prior to such termination date shall survive.

(b)If only part of the Demised Premises is taken
or condemned for a public or quasi-public use and this Lease does not terminate
pursuant to Section 21(a), Landlord shall, to the extent of the award it
receives, restore the Demised Premises to a condition and to a size as nearly
comparable as reasonably possible to the condition and size thereof immediately
prior to the taking, and there shall be an equitable adjustment to the Base Rent
and Additional Rent based on the actual loss of use of the Demised Premises
suffered by Tenant from the taking.

(c)Landlord shall be entitled to receive the
entire award in any proceeding with respect to any taking provided for in this
Section 21, without deduction therefrom for any estate vested in Tenant by this
Lease, and Tenant shall receive no part of such award.  Nothing herein contained
shall be deemed to prohibit Tenant from making a separate claim, against the
condemnor, to the extent permitted by law, for the value of Tenant's moveable
trade fixtures, machinery and moving expenses, provided that the making of such
claim shall not and does not adversely affect or diminish Landlord's award.

22.Tenant's Default.

(a)The occurrence of any one or more of the
following events shall constitute an "Event of Default" of Tenant under this
Lease:

(i)if Tenant fails to pay Base Rent or
any Additional Rent hereunder as and when such rent becomes due and such failure
shall continue for more than five (5) days after Landlord gives written notice
to Tenant of such failure;

(ii)if Tenant fails to pay Base Rent or
any Additional Rent on time more than three (3) times in any period of twelve
(12) months, notwithstanding that such payments have been made within the
applicable cure period;

(iii)if the Demised Premises become
vacant, deserted, or abandoned for more than ten (10) consecutive days or if
Tenant fails to take possession of the Demised Premises on the Lease
Commencement Date or promptly thereafter;

(iv)if Tenant permits to be done anything
which creates a lien upon the Demised Premises and fails to discharge or bond
such lien, or post security with Landlord acceptable to Landlord within thirty
(30) days after receipt by Tenant of written notice thereof; 

(v)if Tenant fails to maintain in force
all policies of insurance required by this Lease and such failure shall continue
for more than ten (10) days after Landlord gives Tenant written notice of such
failure;

(vi)if any petition is filed by or
against Tenant or any guarantor of this Lease under any present or future
section or chapter of the Bankruptcy Code, or under any similar law or statute
of the United States or any state thereof (which, in the case of an involuntary
proceeding, is not permanently discharged, dismissed, stayed, or vacated, as the
case may be, within sixty (60) days of commencement), or if any order for relief
shall be entered against Tenant or any guarantor of this Lease in any such
proceedings;

(vii)if Tenant or any guarantor of this
Lease becomes insolvent or makes a transfer in fraud of creditors or makes an
assignment for the benefit of creditors;

(viii)if a receiver, custodian, or
trustee is appointed for the Demised Premises or for all or substantially all of
the assets of Tenant or of any guarantor of this Lease, which appointment is not
vacated within sixty (60) days following the date of such appointment; or

(ix)if Tenant fails to perform or observe
any other term of this Lease and such failure shall continue for more than
thirty (30) days after Landlord gives Tenant written notice of such failure, or,
if such failure cannot be corrected within such thirty (30) day period, if
Tenant does not commence to correct such default within said thirty (30) day
period and thereafter diligently prosecute the correction of same to completion
within a reasonable time.

(b)Upon the occurrence of any one or more Events
of Default, Landlord may, at Landlord's option, without any demand or notice
whatsoever (except as expressly required in this Section 22):

(i)Terminate this Lease by giving Tenant
notice of termination, in which event this Lease shall expire and terminate on
the date specified in such notice of termination and all rights of Tenant under
this Lease and in and to the Demised Premises shall terminate.  Tenant shall
remain liable for all obligations under this Lease arising up to the date of
such termination, and Tenant shall surrender the Demised Premises to Landlord on
the date specified in such notice; or

(ii)Terminate this Lease as provided in
Section 22(b)(i) hereof and recover from Tenant all damages Landlord may incur
by reason of Tenant's default, including, without limitation, an amount which,
at the date of such termination, is calculated as follows:  (1) the value of the
excess, if any, of (A) the Base Rent, Additional Rent and all other sums which
would have been payable hereunder by Tenant for the period commencing with the
day following the date of such termination and ending with the Expiration Date
had this Lease not been terminated (the "Remaining Term"), over (B) the
aggregate reasonable rental value of the Demised Premises for the Remaining Term
(which excess, if any shall be discounted to present value at the "Treasury
Yield" as defined below for the Remaining Term); plus (2) the actual
costs of recovering possession of the Demised Premises and all other expenses
incurred by Landlord due to Tenant's default, including, without limitation,
reasonable attorney's fees; plus (3) the unpaid Base Rent and Additional
Rent earned as of the date of termination plus any interest and late fees due
hereunder, plus other sums of money and damages owing on the date of termination
by Tenant to Landlord under this Lease or in connection with the Demised
Premises.  The amount as calculated above shall be deemed immediately due and
payable.  The payment of the amount calculated in subparagraph (ii)(1) shall not
be deemed a penalty but shall merely constitute payment of liquidated damages,
it being understood and acknowledged by Landlord and Tenant that actual damages
to Landlord are extremely difficult, if not impossible, to ascertain.  "Treasury
Yield" shall mean the rate of return in percent per annum of Treasury Constant
Maturities for the length of time specified as published in document H.15(519)
(presently published by the Board of Governors of the U.S. Federal Reserve
System titled "Federal Reserve Statistical Release") for the calendar week
immediately preceding the calendar week in which the termination occurs.  If the
rate of return of Treasury Constant Maturities for the calendar week in question
is not published on or before the business day preceding the date of the
Treasury Yield in question is to become effective, then the Treasury Yield shall
be based upon the rate of return of Treasury Constant Maturities for the length
of time specified for the most recent calendar week for which such publication
has occurred.  If no rate of return for Treasury Constant Maturities is
published for the specific length of time specified, the Treasury Yield for such
length of time shall be the weighted average of the rates of return of Treasury
Constant Maturities most nearly corresponding to the length of the applicable
period specified.  If the publishing of the rate of return of Treasury Constant
Maturities is ever discontinued, then the Treasury Yield shall be based upon the
index which is published by the Board of Governors of the U.S. Federal Reserve
System in replacement thereof or, if no such replacement index is published, the
index which, in Landlord's reasonable determination, most nearly corresponds to
the rate of return of Treasury Constant Maturities.  In determining the
aggregate reasonable rental value pursuant to subparagraph (ii)(1)(B)
above, the parties hereby agree that, at the time Landlord seeks to enforce this
remedy, all relevant factors should be considered, including, but not limited
to, (a) the length of time remaining in the Term, (b) the then current
market conditions in the general area in which the Building is located,
(c) the likelihood of reletting the Demised Premises for a period of time
equal to the remainder of the Term, (d) the net effective rental rates then
being obtained by landlords for similar type space of similar size in similar
type buildings in the general area in which the Building is located,
(e) the vacancy levels in the general area in which the Building is
located, (f) current levels of new construction that will be completed
during the remainder of the Term and how this construction will likely affect
vacancy rates and rental rates and (g) inflation; or

(iii)without terminating this Lease, declare
immediately due and payable the sum of the following: (1) the present value
(calculated using the "Treasury Yield") of all Base Rent and Additional Rent due
and coming due under this Lease for the entire remaining Term (as if by the
terms of this Lease they were payable in advance), plus (2) the cost of
recovering and reletting the Demised Premises and all other expenses incurred by
Landlord in connection with Tenant's default, plus (3) any unpaid Base Rent,
Additional Rent and other rentals, charges, assessments and other sums owing by
Tenant to Landlord under this Lease or in connection with the Demised Premises
as of the date this provision is invoked by Landlord, plus (4) interest on all
such amounts from the date due at the Interest Rate, and Landlord may
immediately proceed to distrain, collect, or bring action for such sum, or may
file a proof of claim in any bankruptcy or insolvency proceedings to enforce
payment thereof; provided, however, that such payment shall not be deemed a
penalty or liquidated damages, but shall merely constitute payment in advance of
all Base Rent and Additional Rent payable hereunder throughout the Term, and
provided further, however, that upon Landlord receiving such payment, Tenant
shall be entitled to receive from Landlord all rents received by Landlord from
other assignees, tenants and subtenants on account of said Demised Premises
during the remainder of the Term (provided that the monies to which Tenant shall
so become entitled shall in no event exceed the entire amount actually paid by
Tenant to Landlord pursuant to this subparagraph (iii)), less all costs,
expenses and attorneys' fees of Landlord incurred but not yet reimbursed by
Tenant in connection with recovering and reletting the Demised Premises; or

(iv)Without terminating this Lease, in its
own name but as agent for Tenant, enter into and upon and take possession of the
Demised Premises or any part thereof.  Any property remaining in the Demised
Premises may be removed and stored in a warehouse or elsewhere at the cost of,
and for the account of, Tenant without Landlord being deemed guilty of trespass
or becoming liable for any loss or damage which may be occasioned thereby unless
caused by Landlord's negligence.  Thereafter, Landlord may, but shall not be
obligated to, lease to a third party the Demised Premises or any portion thereof
as the agent of Tenant upon such terms and conditions as Landlord may deem
necessary or desirable in order to relet the Demised Premises.  The remainder of
any rentals received by Landlord from such reletting, after the payment of any
indebtedness due hereunder from Tenant to Landlord, and the payment of any costs
and expenses of such reletting, shall be held by Landlord to the extent of and
for application in payment of future rent owed by Tenant, if any, as the same
may become due and payable hereunder.  If such rentals received from such
reletting shall at any time or from time to time be less than sufficient to pay
to Landlord the entire sums then due from Tenant hereunder, Tenant shall pay any
such deficiency to Landlord.  Notwithstanding any such reletting without
termination, Landlord may at any time thereafter elect to terminate this Lease
for any such previous default provided same has not been cured; or

(v)Without terminating this Lease, and with
or without notice to Tenant, enter into and upon the Demised Premises and,
without being liable for prosecution or any claim for damages therefor, maintain
the Demised Premises and repair or replace any damage thereto or do anything or
make any payment for which Tenant is responsible hereunder.  Tenant shall
reimburse Landlord immediately upon demand for any actual expenses which
Landlord incurs in thus effecting Tenant's compliance under this Lease and
Landlord shall not be liable to Tenant for any damages with respect thereto;
or

(vi)Without liability to Tenant or any other
party and without constituting a constructive or actual eviction, suspend or
discontinue furnishing or rendering to Tenant any property, material, labor,
utilities or other service,  wherever Landlord is obligated to furnish or
render the same so long as an Event of Default exists under this Lease; or

(vii)With or without terminating this Lease,
allow the Demised Premises to remain unoccupied and collect rent from Tenant as
it comes due; or

(viii)Pursue such other remedies as are
available at law or equity.

(c)If this Lease shall terminate as a result of
or while there exists an Event of Default hereunder, any funds of Tenant held by
Landlord may be applied by Landlord to any damages payable by Tenant or credited
to any sum owed to Landlord by Tenant (whether provided for herein or by law) as
a result of such termination or default.

(d)Neither the commencement of any action or
proceeding, nor the settlement thereof, nor entry of judgment thereon shall bar
Landlord from bringing subsequent actions or proceedings from time to time, nor
shall the failure to include in any action or proceeding any sum or sums then
due be a bar to the maintenance of any subsequent actions or proceedings for the
recovery of such sum or sums so omitted.

(e)No agreement to accept a surrender of the
Demised Premises and no act or omission by Landlord or Landlord's agents during
the Term shall constitute an acceptance or surrender of the Demised Premises
unless made in writing and signed by Landlord.  No re-entry or taking possession
of the Demised Premises by Landlord shall constitute an election by Landlord to
terminate this Lease unless a written notice of such intention is given to
Tenant.  No provision of this Lease shall be deemed to have been waived by
either party unless such waiver is in writing and signed by the party making
such waiver.  Landlord's acceptance of Base Rent or Additional Rent in full or
in part following an Event of Default hereunder shall not be construed as a
waiver of such Event of Default.  No custom or practice which may grow up
between the parties in connection with the terms of this Lease shall be
construed to waive or lessen either party's right to insist upon strict
performance of the terms of this Lease, without a written notice thereof to the
other party.

(f)If an Event of Default shall occur, Tenant
shall pay to Landlord, on demand, all expenses incurred by Landlord as a result
thereof, including reasonable attorneys' fees, court costs and expenses actually
incurred.

23.Landlord's Right of Entry.  Tenant agrees
to permit Landlord and the authorized representatives of Landlord and of Lender
to enter upon the Demised Premises at all reasonable times for the purposes of
inspecting the Demised Premises and Tenant's compliance with this Lease, and
making any necessary repairs thereto; provided that, except in the case of an
emergency, Landlord shall give Tenant reasonable prior notice of Landlord's
intended entry upon the Demised Premises.  Nothing herein shall imply any duty
upon the part of Landlord to do any work required of Tenant hereunder, and the
performance thereof by Landlord shall not constitute a waiver of Tenant's
default in failing to perform it.  Landlord shall not be liable for
inconvenience, annoyance, disturbance or other damage to Tenant by reason of
making such repairs or the performance of such work in the Demised Premises or
on account of bringing materials, supplies and equipment into or through the
Demised Premises during the course thereof, and the obligations of Tenant under
this Lease shall not thereby be affected; provided, however, that
Landlord shall use reasonable efforts not to disturb or otherwise interfere with
Tenant's operations in the Demised Premises in making such repairs or performing
such work.  Landlord also shall have the right to enter the Demised Premises at
all reasonable times to exhibit the Demised Premises to any prospective
purchaser, mortgagee or tenant thereof.

24.Lender's Rights.

(a)  For purposes of this Lease:

(i)"Lender" as used herein means the holder
of a Mortgage;

(ii)"Mortgage" as used herein means any or
all mortgages, deeds to secure debt, deeds of trust or other instruments in the
nature thereof which may now or hereafter affect or encumber Landlord's title to
the Demised Premises, and any amendments, modifications, extensions or renewals
thereof.

(b)This Lease and all rights of Tenant hereunder
are and shall be subject and subordinate to the lien and security title of any
Mortgage.  Tenant recognizes and acknowledges the right of Lender to foreclose
or exercise the power of sale against the Demised Premises under any
Mortgage.

(c)Tenant shall, in confirmation of the
subordination set forth in Section 24(b) and notwithstanding the fact that such
subordination is self-operative, and no further instrument or subordination
shall be necessary, upon demand, at any time or times, execute, acknowledge, and
deliver to Landlord or to Lender any and all instruments requested by either of
them to evidence such subordination.

(d)At any time during the Term, Lender may, by
written notice to Tenant, make this Lease superior to the lien of its Mortgage.
If requested by Lender, Tenant shall, upon demand, at any time or times,
execute, acknowledge, and deliver to Lender, any and all instruments that may be
necessary to make this Lease superior to the lien of any Mortgage.

(e)If Lender (or Lender's nominee, or other
purchaser at foreclosure) shall hereafter succeed to the rights of Landlord
under this Lease, whether through possession or foreclosure action or delivery
of a new lease, Tenant shall, if requested by such successor, attorn to and
recognize such successor as Tenant's landlord under this Lease without change in
the terms and provisions of this Lease and shall promptly execute and deliver
any instrument that may be necessary to evidence such attornment, provided that
such successor shall not be bound by (i) any payment of Base Rent or Additional
Rent for more than one month in advance, except prepayments in the nature of
security for the performance by Tenant of its obligations under this Lease, and
then only if such prepayments have been deposited with and are under the control
of such successor, (ii) any provision of any amendment to the Lease to which
Lender has not consented, (iii) the defaults of any prior landlord under this
Lease, or (iv) any offset rights arising out of the defaults of any prior
landlord under this Lease.  Upon such attornment, this Lease shall continue in
full force and effect as a direct lease between each successor landlord and
Tenant, subject to all of the terms, covenants and conditions of this Lease.

(f)In the event there is a Mortgage at any time
during the Term, Landlord shall use reasonable efforts to cause the Lender to
enter into a subordination, nondisturbance and attornment agreement with Tenant
reasonably satisfactory to Tenant and consistent with this Section 24.

25.Estoppel Certificate and Financial
Statement.  

(a)Landlord and Tenant agree, at any time, and
from time to time, within fifteen (15) days after written request of the other,
to execute, acknowledge and deliver a statement in writing in recordable form to
the requesting party and/or its designee certifying that: (i) this Lease is
unmodified and in full force and effect (or, if there have been modifications,
that the same is in full force and effect, as modified), (ii) the dates to which
Base Rent, Additional Rent and other charges have been paid, (iii) whether or
not, to the best of its knowledge, there exists any failure by the requesting
party to perform any term, covenant or condition contained in this Lease, and,
if so, specifying each such failure, (iv) (if such be the case) Tenant has
unconditionally accepted the Demised Premises and is conducting its business
therein, and (v) and as to such additional matters as may be requested, it being
intended that any such statement delivered pursuant hereto may be relied upon by
the requesting party and by any purchaser of title to the Demised Premises or by
any mortgagee or any assignee thereof or any party to any sale-leaseback of the
Demised Premises, or the landlord under a ground lease affecting the Demised
Premises.

(b)If Landlord desires to finance, refinance, or sell the Building, Tenant
and all Guarantors shall deliver to any potential lender or purchaser designated
by Landlord such financial statements of Tenant and such Guarantors as may be
reasonably required by such lender or purchaser, including but not limited to
Tenant's financial statements for the past 3 years.  All such financial
statements shall be received by Landlord and such lender or purchaser in
confidence and shall be used only for the purposes herein set forth.

26.Landlord Liability.  No owner of the
Demised Premises, whether or not named herein, shall have liability hereunder
after it ceases to hold title to the Demised Premises.  Neither Landlord nor any
officer, director, shareholder, partner or principal of Landlord, whether
disclosed or undisclosed, shall be under any personal liability with respect to
any of the provisions of this Lease.  IN THE EVENT LANDLORD IS IN BREACH OR
DEFAULT WITH RESPECT TO LANDLORD'S OBLIGATIONS OR OTHERWISE UNDER THIS LEASE,
TENANT SHALL LOOK SOLELY TO THE EQUITY OF LANDLORD IN THE BUILDING FOR THE
SATISFACTION OF TENANT'S REMEDIES.  IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT
LANDLORD'S LIABILITY UNDER THE TERMS, COVENANTS, CONDITIONS, WARRANTIES AND
OBLIGATIONS OF THIS LEASE SHALL IN NO EVENT EXCEED THE LOSS OF LANDLORD'S EQUITY
INTEREST IN THE BUILDING.

27.Notices.  Any notice required or permitted
to be given or served by either party to this Lease shall be deemed given when
made in writing, and either (i) personally delivered, (ii) deposited with the
United States Postal Service, postage prepaid, by registered or certified mail,
return receipt requested, or (iii) delivered by licensed overnight delivery
service providing proof of delivery, properly addressed to the address set forth
in Section 1(m) (as the same may be changed by giving written notice of the
aforesaid in accordance with this Section 27).  If any notice mailed is properly
addressed with appropriate postage but returned for any reason, such notice
shall be deemed to be effective notice and to be given on the date of
mailing.

28.Brokers.  Tenant represents and warrants to
Landlord that, except for those parties set forth in Section 1(o) (the
"Brokers"), Tenant has not engaged or had any conversations or negotiations with
any broker, finder or other third party concerning the leasing of the Demised
Premises to Tenant who would be entitled to any commission or fee based on the
execution of this Lease.  Tenant hereby further represents and warrants to
Landlord that Tenant is not receiving and is not entitled to receive any rebate,
payment or other remuneration, either directly or indirectly, from the Brokers,
and that it is not otherwise sharing in or entitled to share in any commission
or fee paid to the Brokers by Landlord or any other party in connection with the
execution of this Lease, either directly or indirectly.  Tenant hereby
indemnifies Landlord against and from any claims for any brokerage commissions
(except those payable to the Brokers, all of which are payable by Landlord
pursuant to a separate agreement) and all costs, expenses and liabilities in
connection therewith, including, without limitation, reasonable attorneys' fees
and expenses, for any breach of the foregoing.  The foregoing indemnification
shall survive the termination of this Lease for any reason.

29.Assignment and Subleasing.  

(a)Tenant may not assign, mortgage, pledge,
encumber or otherwise transfer this Lease, or any interest hereunder, or sublet
the Demised Premises, in whole or in part, without on each occasion first
obtaining the prior express written consent of Landlord, which consent Landlord
shall not unreasonably withhold.  Except as provided in Section 29(b), any
change in control of Tenant resulting from a merger, consolidation, stock
transfer or asset sale shall be considered an assignment or transfer which
requires Landlord's prior written consent.  For purposes of this Section 29, by
way of example and not limitation, Landlord shall be deemed to have reasonably
withheld consent if Landlord determines (i) that the prospective assignee or
subtenant is not of a financial strength similar to Tenant as of the Lease Date,
(ii) that the prospective assignee or subtenant has a poor business reputation,
(iii) that the proposed use of the Demised Premises by such prospective assignee
or subtenant (including, without limitation, a use involving the use or handling
of Hazardous Substances) will negatively affect the value or marketability of
the Building or the Project or (iv) that the prospective assignee or subtenant
is a current tenant in the Project or is a bona-fide third-party prospective
tenant.  

(b)Notwithstanding Section 29(a), provided that there is not an
Event of Default under this Lease which remains uncured, Tenant shall have the
right, upon ten (10) days' prior written notice to Landlord but without
Landlord's prior consent, (i) to sublet all or part of the Demised Premises to
any related corporation or entity which controls Tenant, is controlled by Tenant
or is under common control with Tenant; or (ii) to assign this Lease to a
successor corporation into which or with which Tenant is merged or consolidated
or which acquired substantially all of Tenant's assets and property, provided
that such successor corporation assumes substantially all of the obligations and
liabilities of Tenant (including, without limitation, those obligations of
Tenant arising under this Lease) and, after such transaction, shall have assets,
capitalization, tangible net worth and creditworthiness at least equal to the
assets, capitalization, tangible net worth and creditworthiness of Tenant as of
the Lease Date as determined by generally accepted accounting principles.  For
the purpose hereof, (i) "control" shall mean ownership of not less than fifty
percent (50%) of all the voting stock or legal and equitable interest in such
corporation or entity, and (ii) "tangible net worth" shall mean the excess of
the value of tangible assets (i.e. assets excluding those which are intangible
such as goodwill, patents and trademarks) over liabilities.  Any sublease or
assignment pursuant to and in compliance with this subsection (b) shall be
referred to herein as a "Related Assignment".  With respect to any Related
Assignment, Tenant shall provide in its notice to Landlord such information as
may be reasonably required by Landlord to determine that the requirements of
this subsection (b) have been satisfied.

(c)If Tenant desires to assign this Lease or
sublet the Demised Premises or any part thereof, Tenant shall give Landlord
written notice no later than forty-five (45) days in advance of the proposed
effective date of any proposed assignment or sublease, specifying (i) the name
and business of the proposed assignee or sublessee, (ii) the amount and location
of the space within the Demised Premises proposed to be subleased, (iii) the
proposed effective date and duration of the assignment or subletting and (iv)
the proposed rent or consideration to be paid to Tenant by such assignee or
sublessee.  Tenant shall promptly supply Landlord with financial statements and
other information as Landlord may reasonably request to evaluate the proposed
assignment or sublease.  Landlord shall have a period of thirty (30) days
following receipt of such notice and other information requested by Landlord
within which to notify Tenant in writing that Landlord elects:  (i) to terminate
this Lease as to the space so affected as of the proposed effective date set
forth in Tenant's notice, in which event Tenant shall be relieved of all further
obligations hereunder as to such space, except for obligations under Sections 11
and 28 and all other provisions of this Lease which expressly survive the
termination hereof; or (ii) to permit Tenant to assign or sublet such space;
provided, however, that, if the rent rate agreed upon between
Tenant and its proposed subtenant is greater than the rent rate that Tenant must
pay Landlord hereunder for that portion of the Demised Premises, or if any
consideration shall be promised to or received by Tenant in connection with such
proposed assignment or sublease (in addition to rent), then one half (1/2) of
such excess rent and other consideration (after payment of brokerage
commissions, attorneys' fees and other disbursements reasonably incurred by
Tenant for such assignment and subletting if acceptable evidence of such
disbursements is delivered to Landlord) shall be considered Additional Rent owed
by Tenant to Landlord, and shall be paid by Tenant to Landlord, in the case of
excess rent, in the same manner that Tenant pays Base Rent and, in the case of
any other consideration, within ten (10) business days after receipt thereof by
Tenant; or (iii) to refuse, in Landlord's reasonable discretion (taking into
account all relevant factors including, without limitation, the factors set
forth in the Section 29(a) above), to consent to Tenant's assignment or
subleasing of such space and to continue this Lease in full force and effect as
to the entire Demised Premises.  If Landlord should fail to notify Tenant in
writing of such election within the aforesaid thirty (30) day period, Landlord
shall be deemed to have elected option (iii) above.  Tenant agrees to reimburse
Landlord for reasonable legal fees and any other reasonable costs incurred by
Landlord in connection with any requested assignment or subletting, and such
payments shall not be deducted from the Additional Rent owed to Landlord
pursuant to subsection (ii) above.  Tenant shall deliver to Landlord copies of
all documents executed in connection with any permitted assignment or
subletting, which documents shall be in form and substance reasonably
satisfactory to Landlord and which shall require such assignee to assume
performance of all terms of this Lease on Tenant's part to be performed.  The
provisions of this subsection (c) shall not apply to any Related Assignment,
which shall be governed by subsection (b) above.

(d)No acceptance by Landlord of any rent or any
other sum of money from any assignee, sublessee or other category of transferee
shall be deemed to constitute Landlord's consent to any assignment, sublease, or
transfer.  Permitted subtenants or assignees shall become liable directly to
Landlord for all obligations of Tenant hereunder, without, however, relieving
Tenant of any of its liability hereunder.  No such assignment, subletting,
occupancy or collection shall be deemed the acceptance of the assignee, tenant
or occupant, as Tenant, or a release of Tenant from the further performance by
Tenant of Tenant's obligations under this Lease.  Any assignment or sublease
consented to by Landlord shall not relieve Tenant (or its assignee) from
obtaining Landlord's consent to any subsequent assignment or sublease.

30.Termination or Expiration.

(a)No termination of this Lease prior to the
normal ending thereof, by lapse of time or otherwise, shall affect Landlord's
right to collect rent for the period prior to termination thereof.

(b)At the expiration or earlier termination of
the Term of this Lease, Tenant shall surrender the Demised Premises and all
improvements, alterations and additions thereto, and keys therefor to Landlord,
clean and neat, and in the same condition as at the Lease Date (i.e., the
condition in existence prior to Tenant's construction of the Improvements),
excepting normal wear and tear, condemnation and casualty other than that
required to be insured against by Tenant hereunder, it being agreed to by the
parties that, (i) no later than sixty (60) days prior to the expiration of this
Lease, Tenant shall deliver to Landlord an Irrevocable Letter of Credit in an
amount reasonably determined by the Landlord to be sufficient to return the
Building to the condition in existence prior to Tenant's construction of the
Improvements (the "Letter of Credit"; which Letter of Credit shall be added to
and become a part of the Security Deposit, and shall be governed by Section 5
hereof), Landlord hereby agreeing to make such determination based on the
average of at least two (2) competitive bids from reputable, duly licensed
contractors, and to provide Tenant with such determination, and a copy of such
bids, no later than seventy-five (75) days prior to the expiration of this
Lease, and (ii) on or before the expiration of the Term, Tenant shall remove all
Improvements constructed or installed by Tenant, and shall restore the Demised
Premises as required hereinabove, except that any HVAC equipment, any plumbing
upgrades, electrical wiring, cabling or equipment, and any mechanical equipment
comprising a portion of the Improvements and/or otherwise located in or serving
the Demised Premises of which Landlord notifies Tenant of its desire to have
such items remain on the Demised Premises shall remain in the Demised Premises
and not be removed by Tenant as aforesaid.  The Letter of Credit shall (i) be in
a form and from a financial institution acceptable to Landlord, (ii) shall be
maintained in full force and effect throughout the then remaining Term and
during the thirty (30) day period after the later of (a) the Expiration Date or
(b) the date that Tenant delivers possession of the Demised Premises to
Landlord, and (iii) shall serve as additional security for the full and faithful
performance by Tenant of each and every term, covenant and condition of this
Lease, including, without limitation, the restoration obligations contained in
this subsection (b).  In the event that, during the period for which the Letter
of Credit is to remain in full force and effect, Tenant fails to deliver to
Landlord a renewal of or replacement to the letter of credit by a date no later
than thirty (30) days
prior to its expiration date, Landlord shall have the right to demand and
receive payment in full under the Letter of Credit and to hold the cash proceeds
as a portion of the Security Deposit under this Lease. 

(c)If Tenant remains in possession of the Demised
Premises after expiration of the Term, with or without Landlord's acquiescence
and without any express agreement of the parties, Tenant shall be a tenant-at-
sufferance at the greater of (i) one hundred fifty percent (150%) of the then
current fair market base rental value of the Demised Premises or (ii) one
hundred fifty percent (150%) of the Base Rent in effect at the end of the Term.
Tenant shall also continue to pay all other Additional Rent due hereunder, and
there shall be no renewal of this Lease by operation of law.  In addition to the
foregoing, Tenant shall be liable for all damages, direct and consequential,
incurred by Landlord as a result of such holdover.  No receipt of money by
Landlord from Tenant after the termination of this Lease or Tenant's right of
possession of the Demised Premises shall reinstate, continue or extend the Term
or Tenant's right of possession, but shall be credited to any sums owed by
Tenant to Landlord pursuant to the provisions of this Lease.

31.Intentionally Omitted 

32.Late Payments.  In the event any
installment of rent, inclusive of Base Rent, or Additional Rent or other sums
due hereunder, if any, is not paid (i) within five (5) days after Tenant's
receipt of written notice of such failure to pay on the first occasion during
any twelve (12) month period, or (ii) as and when due with respect to any
subsequent late payments in any twelve (12) month period, Tenant shall pay an
administrative fee (the "Administrative Fee") equal to five percent (5%) of such
past due amount, plus interest on the amount past due at the lesser of (i) the
maximum interest rate allowed by law or (ii) a rate of fifteen percent (15%) per
annum (the "Interest Rate") to defray the additional expenses incurred by
Landlord in processing such payment.  The Administrative Fee is in addition to,
and not in lieu of, any of the Landlord's remedies hereunder.

33.Rules and Regulations.  Tenant agrees to
abide by the rules and regulations set forth on Exhibit D attached
hereto, as well as other rules and regulations reasonably promulgated by
Landlord from time to time, so long as such rules and regulations are uniformly
enforced against all tenants of Landlord in the Building.

34.Quiet Enjoyment.  So long as Tenant has not
committed an Event of Default hereunder, Landlord agrees that Tenant shall have
the right to quietly use and enjoy the Demised Premises for the Term.

35.Miscellaneous.

(a)The parties hereto hereby covenant and agree
that Landlord shall receive the Base Rent, Additional Rent and all other sums
payable by Tenant hereinabove provided as net income from the Demised Premises,
without any abatement (except as set forth in Section 20 and Section 21),
reduction, set-off, counterclaim, defense or deduction whatsoever.

(b)If any clause or provision of this Lease is
determined to be illegal, invalid or unenforceable under present or future laws
effective during the Term, then and in that event, it is the intention of the
parties hereto that the remainder of this Lease shall not be affected thereby,
and that in lieu of such illegal, invalid or unenforceable clause or provision
there shall be substituted a clause or provision as similar in terms to such
illegal, invalid or unenforceable clause or provision as may be possible and be
legal, valid and enforceable.

(c)All rights, powers, and privileges conferred
hereunder upon the parties hereto shall be cumulative, but not restrictive to
those given by law.

(d)Time is of the essence of this Lease.

(e)No failure of Landlord or Tenant to exercise
any power given Landlord or Tenant hereunder or to insist upon strict compliance
by Landlord or Tenant with its obligations hereunder, and no custom or practice
of the parties at variance with the terms hereof shall constitute a waiver of
Landlord's or Tenant's rights to demand exact compliance with the terms
hereof.

(f)This Lease contains the entire agreement of
the parties hereto as to the subject matter of this Lease and no prior
representations, inducements, letters of intent, promises or agreements, oral or
otherwise, between the parties not embodied herein shall be of any force and
effect.  Any future amendment to this Lease must be in writing and signed by the
parties hereto.  The masculine (or neuter) pronoun, singular number shall
include the masculine, feminine and neuter gender and the singular and plural
number.

(g)This contract shall create the relationship of
landlord and tenant between Landlord and Tenant; no estate shall pass out of
Landlord; Tenant has a usufruct, not subject to levy and sale, and not
assignable by Tenant except as expressly set forth herein.

(h)Under no circumstances shall Tenant have the
right to record this Lease or a memorandum thereof.

(i)The captions of this Lease are for convenience
only and are not a part of this Lease, and do not in any way define, limit,
describe or amplify the terms or provisions of this Lease or the scope or intent
thereof.

(j)This Lease may be executed in multiple
counterparts, each of which shall constitute an original, but all of which taken
together shall constitute one and the same agreement.

(k)This Lease shall be interpreted under the laws
of the State where the Demised Premises are located.

(l)The parties acknowledge that this Lease is the
result of negotiations between the parties, and in construing any ambiguity
hereunder no presumption shall be made in favor of either party.  No inference
shall be made from any item which has been stricken from this Lease other than
the deletion of such item.

36.Special Stipulations.  The Special
Stipulations, if any, attached hereto as Exhibit C, are incorporated
herein and made a part hereof, and to the extent of any conflict between the
foregoing provisions and the Special Stipulations, the Special Stipulations
shall govern and control.

37.Lease Date.  For purposes of this Lease,
the term "Lease Date" shall mean the later date upon which this Lease is signed
by Landlord and Tenant.

38.Authority.  If Tenant is not a natural
person, Tenant shall cause its corporate secretary or general partner, as
applicable, to execute the certificate attached hereto as Exhibit E.
Tenant is authorized by all required corporate or partnership action to enter
into this Lease and the individual(s) signing this Lease on behalf of Tenant are
each authorized to bind Tenant to its terms.

39.No Offer Until Executed.  The submission of
this Lease by Landlord to Tenant for examination or consideration does not
constitute an offer by Landlord to lease the Demised Premises and this Lease
shall become effective, if at all, only upon the execution and delivery thereof
by Landlord and Tenant. Execution and delivery of this Lease by Tenant to
Landlord constitutes an offer to lease the Demised Premises on the terms
contained herein.  The offer by Tenant will be irrevocable until 6:00 p.m.
Eastern time for fifteen (15) days after the date of execution of this Lease by
Tenant and delivery to Landlord.

 

IN WITNESS WHEREOF, the parties hereto have hereunto set
their hands under seals, the day and year first above written.

	
 

Date:

 

 
	
LANDLORD:

THE SHELBY DRIVE CORPORATION, a Florida corporation

 

By:________________________________

      Name:

      Title:

By:_______________________________

      Name:

      Title:

 

 

(CORPORATE SEAL)

	
 

 

Date:

 
	
TENANT:

Cell Genesys, Inc., a California corporation

 

By:_______________________________

      Name:

      Title:

By:_______________________________

      Name:

      Title:

 

 

(CORPORATE SEAL)

ATTESTATION

 

Landlord - Corporation:

 

STATE OF _________________________ 

COUNTY OF _________________________ 

 

          BEFORE ME, a Notary Public in and for said County,
personally appeared                                 
__________________________ and 
 , known to me to be the person(s) who, as
___________________________________ and ____________________________________,
respectively, of Shelby Drive Corporation, the corporation which executed the
foregoing instrument in its capacity as Landlord, signed the same, and
acknowledged to me that they did so sign said instrument in the name and upon
behalf of said corporation as officers of said corporation, that the same is
their free act and deed as such officers, respectively and they were duly
authorized thereunto by its board of directors; and that the seal affixed to
said instrument is the corporate seal of said corporation.

          IN TESTIMONY WHEREOF, I have hereunto subscribed my
name, and affixed my official seal, this ___________ day of
_________________, 2001.

 

________________________

Notary Public

My Commission Expires:

________________________

 

Tenant - Corporation:

 

STATE OF _________________________ 

COUNTY OF _________________________ 

 

          BEFORE ME, a Notary Public in and for said County,
personally appeared _______________________ 
__________________________ and ________________________
, known to me to be the person(s) who, as
___________________________________ and ____________________________________,
respectively, of Cell Genesys, Inc., the corporation which executed the
foregoing instrument in its capacity as Tenant, signed the same, and
acknowledged to me that they did so sign said instrument in the name and upon
behalf of said corporation as officers of said corporation, that the same is
their free act and deed as such officers, respectively, and they were duly
authorized thereunto by its board of directors; and that the seal affixed to
said instrument is the corporate seal of said corporation.

          IN TESTIMONY WHEREOF, I have hereunto subscribed my
name, and affixed my official seal, this ____________day of ________________
, 2001.

 

__________________

Notary Public

My Commission Expires:

LEASE INDEX

 

SectionSubject

1Basic Lease Provisions

2Demised Premises

3Term

4Base Rent

5Security Deposit

6Operating Expenses and Additional Rent

7Use of Demised Premises

8Insurance

9Utilities

10Maintenance and Repairs

11Tenant's Personal Property; Indemnity

12Tenant's Fixtures

13Signs

14Landlord's Lien

15Governmental Regulations

16Environmental Matters

17Construction of the Work

18Tenant Alterations and Additions

19Services by Landlord

20Fire and Other Casualty

21Condemnation

22Tenant's Default

23Landlord's Right of Entry

24Lender's Rights

25Estoppel Certificate and Financial Statement

26Landlord's Liability

27Notices

28Brokers

29Assignment and Subleasing

30Termination or Expiration

31Intentionally omitted

32Late Payments

33Rules and Regulations

34Quiet Enjoyment

35Miscellaneous

36Special Stipulations

37Lease Date

38Authority

39No Offer Until Executed

            Exhibit "A-1"  Demised Premises

            Exhibit "A-2"  Offer Space

            Exhibit "B"  Reserved

            Exhibit "C"  Special Stipulations

            Exhibit "D"  Rules and Regulations

            Exhibit "E"  Certificate of Authority

            Exhibit "F"  Permitted Hazardous Substances

            Exhibit "G"  Catch Basins

EXHIBIT A-1

Demised Premises

EXHIBIT A-2

Offer Space

EXHIBIT B

Reserved

EXHIBIT C

Special Stipulations
 

The Special Stipulations set forth herein are hereby
incorporated into the body of the lease to which these Special Stipulations are
attached (the "Lease"), and to the extent of any conflict between these Special
Stipulations and the preceding language, these Special Stipulations shall govern
and control.

1.Right of First Offer to Lease.   So long as the Lease is in
full force and effect and no Event of Default has occurred and is then
continuing and no facts or circumstances then exist which, with the giving of
notice or the passage of time, or both, would constitute an Event of Default,
Landlord hereby grants to Tenant a right of first offer (the "Right of First
Offer") to expand the Demised Premises to include that 11,875 square foot area
labeled on Exhibit A-1 attached hereto (the "Offer Space") subject to the terms
and conditions set forth herein.  

(a)Tenant's then current financial condition, as revealed by its
most current financial statements (which shall include quarterly and annual
financial statements, including income statements, balance sheets, and cash flow
statements, as required by Landlord), must demonstrate either that Tenant's net
worth is at least equal to its net worth at the time the Lease was signed; or
that Tenant otherwise meets financial criteria acceptable to Landlord.

(b)The term of the Right of First Offer shall commence on the
Lease Commencement Date and continue throughout the initial Term (the "First
Offer Period"), unless sooner terminated pursuant to the terms hereof.

(c)Subject to the other terms of this Right of First Offer, after
any part of the Offer Space has or will "become available" (as defined herein)
for leasing by Landlord, Landlord shall not, during the term of the Right of
First Offer, lease to a third party that available portion of the Offer Space
(the "Available Offer Space") without first offering Tenant the right to lease
such Available Offer Space as set forth herein.  

(i)Space shall be deemed to "become available" when Landlord
desires to lease all or a portion of the Offer Space.

(ii)Notwithstanding subsection c(i) above, Offer Space shall
not be deemed to "become available" if the space is (a) assigned or subleased by
the current tenant of the space; or (b) re-let by the current tenant or
permitted subtenant of the space by renewal, extension, or renegotiation or (c)
leased on a temporary basis for a period of less than twelve (12) months without
any right to extend.

(d)Consistent with subsection (c), Landlord shall not lease any
such Available Offer Space to a third party unless and until Landlord has first
offered the Available Offer Space to Tenant in writing (the "Offer").  The Offer
shall contain (i) a description of the Available Offer Space (which description
shall include the square footage amount and location of such Available Offer
Space) and an attached floor plan that shows the Available Offer Space; (ii) the
date on which Landlord expects the Available Offer Space to become available;
(iii) the base rent for the Available Offer Space; (iv) the increase in Tenant's
Operating Expense Percentage as defined in Section 1(j) of the Lease, (v) and
the term for the Available Offer Space (which shall be no less than the
remainder of the Term of this Lease then in effect).  Upon receipt of the Offer,
Tenant shall have the right, for a period of ten (10) calendar days after
receipt of the Offer, to exercise the Right of First Offer by giving Landlord
written notice that Tenant desires to lease the Available Offer Space at the
base rent and upon the special terms and conditions as are contained in the
Offer.  If the term of the Available Offer Space expires after the Term of the
Lease, the Term of the Lease shall be extended to be coterminous with the term
of the Available Offer Space and the Annual Base Rent per square foot for the
existing Demised Premises during said extension shall be based upon the greater
of (i) the base rent per square foot for the Available Offer Space or (ii) the
Annual Base Rent per square foot of the Demised Premises for the last year
of the Term.  If Tenant has an extension option under this Lease and the Term of
this Lease is deemed extended to be coterminous with the expiration date set
forth in the Offer, then the applicable extension option shall be deemed
exercised for the period of time required to make the Term of this Lease
coterminous with the expiration date of the Offer (and any partial extension
term then remaining shall be subject to the terms and conditions of Special
Stipulation 2), provided that in the event Tenant later exercises the applicable
extension option for the partial extension term then remaining, base rent for
the Available Offer Space previously added to the Demised Premises shall, during
such applicable partial extension term, be based on the greater of (i) the
Prevailing Market Rate (as defined and calculated in Special Stipulation 2(b)),
or (ii) the Base Rental rate for such Available Offer Space in effect
immediately prior to such applicable partial extension term, or (iii) the fixed
Base Rental rate applicable to the original Demised Premises during such partial
extension term.

(e)If, within such ten (10)-day period, Tenant exercises the
Right of First Offer, then Landlord and Tenant shall amend the Lease to include
the Available Offer Space subject to the same terms and conditions as the Lease,
as modified by the terms and conditions of the Offer.  If this Lease is
guaranteed now or at anytime in the future, Tenant simultaneously shall deliver
to Landlord an original, signed, and notarized reaffirmation of each Guarantor's
personal guaranty, in form and substance acceptable to Landlord.

(f)If, within such ten (10)-day period, Tenant declines or fails
to exercise the Right of First Offer, Landlord shall then have the right to
lease the Available Offer Space in portions or in its entirety to a third party,
unrelated to and unaffiliated with Landlord, at any time without regard to the
restrictions in this Right of First Offer and on whatever terms and conditions
Landlord may decide in its sole discretion, provided the base rent (as adjusted
to account for any changes in the tenant improvement allowance), additional rent
and any rent concessions are not substantially more favorable to such tenant
than those set forth in the Offer, without again complying with all the
provisions of this Right of First Offer. 

(g)If Landlord does lease all or any portion of the Available
Offer Space to such a third party after complying with the terms and conditions
of this Right of First Offer, then the Right of First Offer shall terminate, and
Tenant shall have no further Right of First Offer.

(h)If Landlord desires to lease the Available Offer Space at a
base rent rate substantially less than the base rent rate set forth in the Offer
(provided, that if the base rent rate is at least ninety percent (90%) of the
base rent rate set forth in the Offer, said base rent rate shall be conclusively
deemed to be not substantially less than the base rent set forth in the Offer),
or if Landlord desires to materially alter or modify the special terms and
conditions of the Offer, if any, Landlord shall be required to present the
altered or modified Offer to Tenant pursuant to this Right of First Offer, in
the same manner that the original Offer was submitted to Tenant. 

(i)This Right of First Offer is personal to Cell Genesys, Inc., a
California corporation, and shall become null and void upon the occurrence of an
assignment of Tenant's interest in the Lease (other than as a result of an
assignment which constitutes a Related Assignment in accordance with Section
29(b) of the Lease) or a sublet of all or a part of the Demised Premises.

(j)This Right of First Offer shall be null and void if Tenant is
a holdover Tenant pursuant to Section 30(c) of the Lease at the time Landlord is
required to notify Tenant of the Offer or at the time Tenant exercises its Right
of First Offer.

 

2.Option to Extend Term.  

(a)  Landlord hereby grants to Tenant two (2) consecutive options to
extend the Term for a period of five (5) years, each such option to be exercised
by Tenant giving written notice of its exercise to Landlord in the manner
provided in this Lease at least one hundred eighty (180) days prior to (but not
more than two hundred ten (210) days prior to) the expiration of the Term, as it
may have been previously extended.  No extension option may be exercised by
Tenant if an Event of Default has occurred and is then continuing or any facts
or circumstances then exist which, with the giving of notice or the passage of
time, or both, would constitute an Event of Default either at the time of
exercise of the option or at the time the applicable Term would otherwise have
expired if the applicable option had not been exercised.

(b)  If Tenant exercises its option[s] to extend the Term,
Landlord shall, within thirty (30) days after the receipt of Tenant's notice of
exercise, notify Tenant in writing of Landlord's reasonable determination of the
Base Rent for the Demised Premises (including any space added thereto pursuant
to Special Stipulation 1), which amount shall be based on the greater of (i) the
market rate for such space or (ii) the Annual Base Rent rate in effect during
the last year of the Term.  Tenant shall have thirty (30) days from its receipt
of Landlord's notice to notify Landlord in writing that Tenant does not agree
with Landlord's determination of the Base Rent and that Tenant elects to
determine the Prevailing Market Rate (as defined and calculated below).  If
Tenant does not notify Landlord of such election within thirty (30) days of its
receipt of Landlord's notice, Base Rent for the Demised Premises for the
applicable extended term shall be the Base Rent set forth in Landlord's notice
to Tenant.  The phrase "Prevailing Market Rate" shall mean the then prevailing
market rate for base minimum rental calculated on a per square foot basis for
leases covering buildings comparable to the Building (as adjusted for any
variances between such buildings and the Building) located in the area of
Memphis, Tennessee (hereinafter referred to as the "Market Area").  The
Prevailing Market Rate shall be determined by an appraisal procedure as
follows:

In the event that Tenant notifies Landlord that Tenant disagrees with
Landlord's determination of the market rate and that Tenant elects to determine
the Prevailing Market Rate, then Tenant shall specify, in such notice to
Landlord, Tenant's selection of a real estate appraiser who shall act on
Tenant's behalf in determining the Prevailing Market Rate.  Within twenty (20)
days after Landlord's receipt of Tenant's selection of a real estate appraiser,
Landlord, by written notice to Tenant, shall designate a real estate appraiser,
who shall act on Landlord's behalf in the determination of the Prevailing Market
Rate.  Within twenty (20) days of the selection of Landlord's appraiser, the two
(2) appraisers shall render a joint written determination of the Prevailing
Market Rate, which determination shall take into consideration any differences
between the Building and those buildings comparable to the Building located in
the Market Area, including without limitation age, location, setting and type of
building.  If the two (2) appraisers are unable to agree upon a joint written
determination within said twenty (20) day period, the two appraisers shall
select a third appraiser within such twenty (20) day period.  Within twenty (20)
days after the appointment of the third appraiser, the third appraiser shall
render a written determination of the Prevailing Market Rate by selecting,
without change, the determination of one (1) of the original appraisers as to
the Prevailing Market Rate and such determination shall be final, conclusive and
binding.  All appraisers selected in accordance with this subparagraph shall
have at least ten (10) years prior experience in the commercial leasing market
of the Market Area and shall be members of the American Institute of Real Estate
Appraisers or similar professional organization.  If either Landlord or Tenant
fails or refuses to select an appraiser, the other appraiser shall alone
determine the Prevailing Market Rate.  Landlord and Tenant agree that they shall
be bound by the determination of Prevailing Market Rate pursuant to this
paragraph.  Landlord shall bear the fee and expenses of its appraiser; Tenant
shall bear the fee and expenses of its appraiser; and Landlord and Tenant shall
share equally the fee and expenses of the third appraiser, if any.

Notwithstanding anything to the contrary contained herein, in the event the
Prevailing Market Rate as determined herein is less than the Annual Base Rent in
effect during the last year of the Term, the Base Rent during the applicable
extension Term shall equal the Annual Base Rent in effect during the last year
of the Term. 

(c)Except for the Base Rent, which shall be determined as set forth
in subparagraph (b) above, leasing of the Demised Premises by Tenant for the
applicable extended term shall be subject to all of the same terms and
conditions set forth in this Lease, including Tenant's obligation to pay
Tenant's share of Operating Expenses as provided in this Lease; provided,
however, that any improvement allowances, termination rights, rent abatements or
other concessions applicable to the Demised Premises during the initial Term
shall not be applicable during any such extended term, nor shall Tenant have any
additional extension options unless expressly provided for in this Lease.
Landlord and Tenant shall enter into an amendment to this Lease to evidence
Tenant's exercise of its renewal option.  If this Lease is guaranteed, it shall
be a condition of Landlord's granting the renewal that Tenant deliver to
Landlord a reaffirmation of the guaranty in which the guarantor acknowledges
Tenant's exercise of its renewal option and reaffirms that the guaranty is in
full force and effect and applies to said renewal.

3.Limited Environmental Indemnity.   Landlord shall indemnify
Tenant and hold Tenant harmless from and against any and all expenses, losses
and liabilities actually suffered by Tenant (with the exception of any and all
consequential damages, including but not limited to the loss of use of the
Demised Premises, lost profits and loss of business, and those expenses, losses,
and liabilities arising from Tenant's own negligence or willful act) as a result
of a governmental authority having jurisdiction ordering a cleanup, removal or
other remediation by Tenant of any Hazardous Substances located in or about the
catch basins located within the Demised Premises and used by the previous tenant
thereof (one such catch basin being located in the northwest corner of the
warehouse portion of the Demised Premises between two dock doors, and the other
being located along the sewer line on the south side of the Demised Premises and
adjacent to the center column, as shown and identified as Area #1 and Area #2,
respectively, on Exhibit G attached hereto and incorporated herein), but
only with respect to any such Hazardous Substances located therein or thereabout
as of the Lease Date.

EXHIBIT D

Rules And Regulations
 

 

These Rules and Regulations have been adopted by Landlord for
the mutual benefit and protection of all the tenants of the Building in order to
insure the safety, care and cleanliness of the Building and the preservation of
order therein. 

1.The sidewalks shall not be obstructed or used for
any purpose other than ingress and egress.  No tenant and no employees of any
tenant shall go upon the roof of the Building without the consent of Landlord.

2.No awnings or other projections shall be attached
to the outside walls of the Building. 

3.The plumbing fixtures shall not be used for any
purpose other than those for which they were constructed, and no sweepings,
rubbish, rags or other substances, including Hazardous Substances, shall be
thrown therein. 

4.No tenant shall cause or permit any objectionable
or offensive odors to be emitted from the Demised Premises. 

5.The Demised Premises shall not be used for lodging
or sleeping or for any immoral or illegal purposes. 

6.No tenant shall make, or permit to be made any
unseemly or disturbing noises, sounds or vibrations or disturb or interfere with
tenants of this or neighboring buildings or premises or those having business
with them. 

7.Each tenant must, upon the termination of this
tenancy, return to the Landlord all keys of stores, offices, and rooms, either
furnished to, or otherwise procured by, such tenant, and in the event of the
loss of any keys so furnished, such tenant shall pay to the Landlord the cost of
replacing the same or of changing the lock or locks opened by such lost key if
Landlord shall deem it necessary to make such change. 

8.Canvassing, soliciting and peddling in the Building
and the Project are prohibited and each tenant shall cooperate to prevent such
activity. 

9.Landlord will direct electricians as to where and
how telephone or telegraph wires are to be introduced.  No boring or cutting for
wires or stringing of wires will be allowed without written consent of Landlord.
The location of telephones, call boxes and other office equipment affixed to the
Demised Premises shall be subject to the approval of Landlord. 

10.Parking spaces associated with the Building are
intended for the exclusive use of passenger automobiles.  Except for
intermittent deliveries, no vehicles other than passenger automobiles may be
parked in a parking space without the express written permission of Landlord.
Trucks and tractor trailers may only be parked at designated areas of the
Building.  Trucks and tractor trailers shall not block access to the
Building.

11.No tenant shall use any area within the Project
for storage purposes other than the interior of the Demised Premises. 

EXHIBIT E

CERTIFICATE OF AUTHORITY

CORPORATION

The undersigned, Secretary of Cell Genesys, Inc., a
California corporation ("Tenant"), hereby certifies as follows to Shelby Drive
Corporation, a Florida corporation ("Landlord"), in connection with Tenant's
proposed lease of premises in Building M, at Southpark, Shelby County, Tennessee
(the "Premises"):

1.Tenant is duly organized, validly existing and in
good standing under the laws of the State of California, and duly qualified to
do business in the State of Tennessee.

2.That the following named persons, acting
individually, are each authorized and empowered to negotiate and execute, on
behalf of Tenant, a lease of the Premises and that the signature opposite the
name of each individual is an authentic signature: 

	
____________________

	
____________________

	
____________________

	
(name)

	
(title)

	
(signature)

	
____________________

	
____________________

	
____________________

	
(name)

	
(title)

	
(signature)

	
____________________

	
____________________

	
____________________

	
(name)

	
(title)

	
(signature)

3.That the foregoing authority was conferred upon the
person(s) named above by the Board of Directors of Tenant, at a duly convened
meeting held _____________, 2001.

 

________________________________

Secretary

[CORPORATE SEAL]

EXHIBIT F

PERMITTED HAZARDOUS SUBSTANCES

EXHIBIT G

CATCH BASINS12312001 Form 10-K Exhbit 10.20

                                            Exhibit 10.20

Lease Agreement

Basic Lease Information

	
Lease Date:
	
January 7, 2002

	
Landlord:
	
F & S HAYWARD II, LLC, a Delaware limited liability company

	
Landlord's Address:
	
C/o Foster Enterprises

400 South El Camino Real, Suite 1400

San Mateo, California  94402-1740

	
Tenant:
	
CELL GENESYS, INC., a Delaware corporation

	
Tenant's Address:
	
342 Lakeside Drive

Foster City, California  94404

Attn:  Chief Financial Officer

	
Premises:
	
That certain two-story building consisting of approximately 50,000 square
feet to be constructed by Landlord approximately in the location as shown on
Exhibit A-1 ("Building")

	
Lot:
	
The land described on Exhibit A consisting of approximately 2.5 acres
(the "Lot").

	
Project:
	
The aggregate of the Building and the Lot.

	
Adjacent Park:
	
The term "Adjacent Park" shall mean that portion of Bridgeview Tech
Park described on Exhibit A-2.

	
Premises Address:
	
[To be determined] Clawiter Road

Hayward, California 94545

	
Term:
	
15 years commencing on the Rent Commencement Date plus two (2) options to
extend the term for five (5) years each

	
Base Rent (5):
	
Base Rent per month shall be calculated at the rate of $1.60 per square foot
of the Building as provided in the Architect's Certificate and shall be subject
to adjustment annually as herein set forth.  Rent shall commence on the date
described in Section 5.2.

	
Adjustments to Base Rent (5):
	
Base Rent shall increase by 4% annually on each anniversary of the Rent
Commencement Date.

Rent during any extended term shall be as set forth below in Section 3.

	
Advance Rent (5):
	
The sum of $80,640.00 shall be paid upon execution of the Lease and shall be
applied to the Base Rent obligation as it becomes due.

	
Collateral for Performance (6):
	
Letter of Credit in the amount of $990,000.

	
Operating Expenses (8.1):
	
Tenant pays Operating Expenses (as defined below) relating to the Building
and a Pro Rata Share of expenses relating to the Common Areas.

	
Tax Expenses (8.3):
	
See Section 8.3

	
Utility Expenses (9.1):
	
Tenant pays Utility Expenses (as defined below) relating to the Building and
the Lot.

	
Permitted Uses (11):
	
Biotech wet lab research and manufacturing, office use and warehousing, but
only to the extent permitted by the City of Hayward and all agencies and
governmental authorities having jurisdiction thereof.

	
Parking (1 and 24):
	
One hundred five (105) non-exclusive and non-designated spaces located on the
Lot.

	
Broker (33):
	
CRESA Partners for Tenant

	
Exhibits:
	
Exhibit A-Legal Description

Exhibit A-1  - Site Plan (Including Lot, Adjacent Park, and
Building)

	 	
Exhibit B -Work Letter Agreement

	 	
Exhibit C - Rules and Regulations

	 	
Exhibit D-Reserved

	 	
Exhibit E-Tenant's Initial Hazardous Materials Disclosure
Certificate

	 	
Exhibit F - Reserved

	 	
Exhibit G - Reserved

	 	
Exhibit H- Required Surrender Improvements

	 	
Exhibit I - Subordination, Non-Disturbance and Attornment
Agreement

 

Landlord and Tenant are entering into this Lease based on the following
recitals of fact:

A.Landlord owns the Lot.  Although the Building comprising the Premises
is to be located upon the Lot, it is not included in the definition of the Lot,
and the Lot, other than the area thereof covered by the Building, is part of the
Common Areas (hereafter defined).

B.Landlord shall construct the Building as more particularly set forth
herein.

C.The Basic Lease Information set forth above, this Lease and the
Exhibits attached hereto are and shall be construed as a single instrument.

Lease Agreement

NOW, THEREFORE, Landlord and Tenant agree as follows:

	Premises; PROJECT;
ADJACENT PARK.

	Premises.  Landlord hereby leases to Tenant the Building
comprising the Premises (as described in the Basic Lease Information) upon the
terms and conditions contained herein

	Appurtenances.  Landlord also grants to
Tenant as an appurtenance to Tenant's leasehold interest in the Premises, (i) a
right of non-exclusive ingress and egress through the Common Areas (hereafter
defined in Section 1.3) and (ii) the parking rights described in Section 24
below.
	Common Areas.
Common Areas shall have the following definition:

	The term "Common Area" or "Common Areas" shall mean
those portions of the Lot and the Adjacent Park exclusive of (i)
the Building, (ii) other buildings located thereon and (iii) other portions
thereof that are leased exclusively to other tenants, if any. 
	 "Common Area" and "Common Areas" shall also include the
Facilities located therein or thereon.  As used herein "Facilities"
means the driveways, parking areas, access and perimeter roads, sidewalks, and
landscaped areas and all other facilities located outside of the Building and
the other buildings located on the Adjacent Park, including, without limitation,
storm drains, sanitary sewers, water lines, lighting facilities, irrigation
facilities and utilities serving more than one tenant; provided, however, that
"Facilities" shall not include (i) any space within the
interior of the Building or any other building within the Adjacent Park,
(ii) Tenant's Property, and (iii) any sanitary sewers, water lines, lighting
facilities, and other utilities which serve only (a) the Building or (b) any
other building located in the Adjacent Project.

	Lease Term

The Term of this Lease shall commence on the Rent Commencement
Date (as defined in Exhibit B hereto) ("Commencement Date").
The Term of the Lease shall expire on the last day of the calendar month in
which the fifteenth anniversary of the Commencement Date occurs
("Expiration Date"), subject, however to the provisions of Section 3
hereof.

	Option to Extend Lease
Term

	Grant of Option.  Subject to the other provisions of this Section
3, Tenant shall have the option ("Extension Option(s)") to extend the
term of the Lease for two (2) consecutive periods of five (5) years each (the
"First Extended Term" and "Second Extended Term"
respectively).

	Termination of Option.  If Landlord does
not receive written notice ("Option Notice") from tenant of its
exercise of an Extension Option on a date which is not more than three hundred
sixty-five (365) days nor less than two hundred forty (240) days prior to the
last day of the initial term of the Lease or the first Extended Term, as the
case may be, all rights under such Extension Option shall automatically
terminate and be of no further force or effect.
	Base Rent During Extended
Term.  

	The monthly Base Rent for an Extended Term shall be Fair Rental Value of
the Premises.  "Fair Rental Value" shall mean the amount, as of the
commencement of an Extended Term, of the fair market rental value of premises
(i) comparable to the Premises provided to the Tenant at Landlord's expense,
without regard to any improvements to the Premises at the expense of Tenant and
(ii) located within the competitive market area of the Premises, including the
amount of fair market periodic rent adjustments applicable thereto for the
Extended Term, taking into consideration all relevant factors, including length
of term, the uses permitted under the Lease, the quality, size, design and
location of such premises, the condition and value of existing tenant
improvements provided at the expense of Landlord.
	Landlord shall advise Tenant of Landlord's estimate
of the Fair Rental Value of the Premises by giving Tenant written notice thereof
("Landlord's Rent Notice") within thirty (30) days after Landlord
receives timely notice of Tenant's exercise of an Extension Option.  If Tenant
wishes to dispute the Fair Rental Value described in Landlord's Rent Notice,
Tenant shall notify Landlord in writing of Tenant's estimate of the Fair Rental
Value of the Premises within twenty (20) days after Landlord's giving of the
Landlord's Rent Notice.  Landlord and Tenant shall than have a period of thirty
(30) days within which to meet and negotiate the Fair Rental Value of the
Premises.  If Landlord and Tenant have not reached written agreement on the Fair
Rental Value of the Premises with such thirty (30) day period, within forty-five
(45) days after Landlord's giving of Landlord's Rent Notice Tenant may deliver
to Landlord a written notice ("Appraisal Request") demanding appraisal
of the Fair Rental Value of the Premises in accordance with the provisions of
Section 3.3.3 below.   If Tenant fails to give the Landlord an Appraisal
Request within the time permitted above, Tenant shall be deemed to have
withdrawn its exercise of the Extension Option in question.
	If Tenant gives Landlord an Appraisal Request
pursuant to Section 3.3.2 of the Lease, the following provisions shall govern
the conduct of an appraisal of the Fair Rental Value of the Premises:

	Within twenty (20) days after the delivery to Landlord of the Appraisal
Request, each party, at its cost and by giving written notice to the other
party, shall appoint an MAI real estate appraiser in accordance with the
provisions of Section 3.3.3.4 hereof, to appraise and determine the Fair Rental
Value of the Premises.  If a party does not appoint an appraiser within twenty
(20) days after the other party has given notice of the name of its appraiser,
the single appraiser appointed shall be the sole appraiser and shall determine
the Fair Rental Value of the Premises.
	If two appraisers are chosen, the appraisers shall
meet within thirty (30) days after the second appraiser is appointed, and, if
within ten (10) days after such first meeting the two appraisers are unable to
agree upon a determination of Fair Rental Value of the Premises, they shall
appoint a third appraiser, with similar qualifications.  The appraisers shall
immediately notify Landlord and Tenant in writing of their selection.  If they
are unable to agree upon a third appraiser within ten (10) days or, if the
appraisers do not meet within said period, the third appraiser shall be selected
by Landlord and Tenant.  If Landlord and Tenant cannot agree upon the third
appraiser within a further period of ten (10) days, then either party, on behalf
of both, may apply to the presiding judge of the Superior Court for the county
in which the Premises is located for the selection of a third appraiser, who
meets the qualifications stated in Section 3.3.3.4. Each of the parties shall
bear one-half of the cost of appointing the third appraiser and of paying the
third appraiser's fees.  The third appraiser, however selected, shall be a
person who has not previously acted for either party.
	Within thirty (30) days after the selection of the third appraiser, the
appraisers shall meet and determine the Fair Rental Value of the Premises.  If a
majority of the appraisers are unable to so determine the Fair Rental Value of
the Premises within said thirty (30) day period of time, the three appraisals
shall be added together, and their total shall be divided by three.  The
resulting quotient shall be the Fair Rental Value of the Premises, provided that
if the low appraisal is more than ten percent (10%) lower than the middle
appraisal or the high appraisal is more than ten percent (10%) higher than the
middle appraisal, the lower appraisal and/or the higher appraisal shall be
disregarded.  If only one appraisal is disregarded, the remaining two appraisals
shall be added together and the total divided by two.  The resulting quotient
shall be the Fair Rental Value of the Premises.
	All appraisers selected pursuant to this paragraph
shall be MAI real estate appraisers familiar with the Fair Rental Value of
comparable space in the same area as the area where the Premises is located and
shall have at least five years experience as a commercial real estate appraiser
in the area where the Premises is located.

	In no event shall the Base Rent for any period of an Extended Term be less
than the monthly Base Rent charged during the last month of the initial term of
the Lease or the last month of the preceding Extended Term, as the case may be.
Upon determination of the monthly Base Rent for an Extended Term in accordance
with the provisions outlined above, Landlord and Tenant shall immediately
execute a letter acknowledging the revised Base Rent, provided that the failure
by Landlord or Tenant to execute the letter shall not affect the determination
of the monthly Base Rent.  Such new lease agreement or amendment, as the case
may be, shall set forth among other things, the monthly Base Rent for such
Extended Term, including periodic rent adjustments, and the actual commencement
date and expiration date of such Extended Term.  Tenant shall have no other
right to extend the term of the Lease unless Landlord and Tenant otherwise agree
in writing.

	Premises As-Is During Extended Term.  If
Tenant timely and properly exercises an Extension Option in strict accordance
with the terms contained herein:  (1) Tenant shall accept the Premises in its
then "As-Is" condition, subject to the terms of this Lease, and,
accordingly, Landlord shall not be required to perform any improvements to the
Premises not otherwise required by this Lease; and (2) Tenant hereby agrees that
it will be solely responsible for any and all brokerage commissions and finder's
fees payable to any broker now or hereafter procured or hired by Tenant or who
otherwise claims a commission based on any act or statement of Tenant
("Tenant's Broker") in connection with the Extension Option; and
Tenant hereby further agrees that Landlord shall in no event or circumstance be
responsible for the payment of any such commissions and fees to Tenant's
Broker.

	Options Personal.  The Extension
Option(s) are personal to the original Tenant named in the Basic Lease
Information and may not be assigned, voluntarily or involuntarily, separate from
or as part of the Lease; provided, however, the original Tenant and any
Affiliate (as defined in Section 16.7) or Transferee resulting from a Transfer
that has been consented to by Landlord pursuant to Section 16, shall have the
right to transfer any unexercised Extension Option to an Affiliate (as defined
in Section 16.7) or to a Transferee resulting from a Transfer that has been
consented to by Landlord pursuant to Section 16. At Landlord's option, all
rights of Tenant under the Extension Option(s) shall terminate and be of no
force or effect if any of the following individual events occur or any
combination thereof occur:  (i) Tenant is in default of any provision of the
Lease at the time of an attempted option exercise; and/or (ii) Tenant has
assigned its rights and obligations under all or part of the Lease or Tenant has
subleased all or part of the Premises in violation of the provisions of this
Lease; and/or (iii) Tenant has failed to properly exercise this Extension Option
in a timely manner in strict accordance with the provisions of this Lease
Agreement; and/or (iv) the Lease has been earlier terminated.

	Time Of Essence.  TIME IS OF THE ESSENCE
WITH RESPECT TO EACH AND EVERY PROVISION OF THIS SECTION 3.

	Occupancy; ACKNOWLEDGEMENT of Commencement
Date

	No Early
Occupancy.  Tenant shall have no right to occupy the Premises prior
to the actual Commencement Date in the absence of a written agreement of the
Landlord and Tenant to the contrary.

	Lease Term Commencement Date.  Landlord
and Tenant shall execute a written acknowledgement to this Lease, substantially
in the form of Schedule II to the Work Letter , wherein the parties shall
specify the actual Commencement Date, Expiration Date and the date on which
Tenant is to commence paying Rent. The word "Term" whenever used herein
refers to the initial term of this Lease and any valid extension(s)
thereof.

	Rent

	Delivery of Lease; Advance Rent.  On the date that Tenant
executes this Lease, Tenant shall deliver to Landlord (i) the original executed
Lease and (ii) the Advance Rent, which will be applied
to the Base Rent for the month following the Rent Commencement Date (as defined
in the Work Letter).
	Payment of Base
Rent. The Advance Rent is the Base Rent for the first full month
following the Rent Commencement Date and is paid without notice, demand,
abatement, offset, deduction or claim.  Tenant agrees to pay Landlord the
remaining Base Rent, without prior notice or demand, abatement, offset,
deduction or claim, commencing on the first day of the second calendar month
following the Rent Commencement Date and on or before the first day of each
calendar month thereafter, in advance, at Landlord's Address stated in the Basic
Lease Provisions.  If the Rent Commencement Date is other than the first day of
a calendar month, then the amount of Base Rent due on the first day of the
second calendar month following the Rent Commencement Date shall be prorated.
Landlord shall apply the Advance Rent against the Base Rent due for the first
(1st) full calendar month following the Rent Commencement Date (as
defined in the Work Letter Agreement attached hereto as Exhibit B). 
In the event Tenant disputes when the Substantial Completion Date or the Rent
Commencement Date occurs, until and subject to the resolution of such dispute,
Tenant shall pay the Rent to Landlord as provided herein, but Tenant may do so
under protest, reserving all rights with respect to such dispute, pending
resolution thereof. If, when, and to the extent it is subsequently determined
that the Rent Commencement Date actually occurred on a date later that that
determined by Landlord, Landlord shall reimburse Tenant for any Rent paid for
any period prior to the actual Rent Commencement Date as so determined.  If
Landlord fails to reimburse Tenant such amounts within ten (10) days of Tenant's
written demand therefor, Tenant shall have the right to offset the amount owing
against the Rent next payable by Tenant hereunder.

	Payment of Additional Rent.  In addition
to the Base Rent, commencing on the Rent Commencement Date, Tenant shall pay
Landlord in advance on the first (1st) day of each month thereafter during the
Term of this Lease, as Additional Rent (hereafter defined in Section 8),
Operating Expenses and Tax Expenses. The term "Rent" or "rent"
whenever used herein refers to the aggregate of Base Rent and Additional Rent.
The Rent for any fractional part of a calendar month shall be a prorated amount
of the Rent for a full calendar month based upon a thirty (30) day month. To the
extent not already paid as part of the Advance Rent (i) any prorated Rent shall
be paid on the first day of the third calendar month after the Commencement
Date, (ii) any prorated Additional Rent shall be paid on the first day of the
first calendar month of the Lease Term, and any prorated Rent for the final
calendar month hereof shall be paid on the first day of the calendar month in
which the date of expiration or termination occurs.

	Adjustment of Base Rent.  Base Rent
shall be adjusted annually on each anniversary of the Commencement Date
("Adjustment Date") by multiplying the Base Rent in effect on the day
prior to the Adjustment Date by one hundred four percent (104%).
	COLLATERAL SECURING LEASE
OBLIGATIONS.

	Delivery Letter of Credit.  Simultaneously with
Tenant's execution and delivery of this Lease, Tenant shall deliver to Landlord
an irrevocable and negotiable stand-by letter of credit in the Security Amount
that conforms to the criteria set forth below (the "Letter of Credit")
As used herein the term "Security Amount" shall mean Nine Hundred
Ninety Thousand Dollars ($990,000).  Tenant shall cause the Letter of Credit
in the Security Amount to be in effect through a date which is sixty (60) days
following the end of the Term of this Lease as the same may be extended from
time to time.

	Letter of Credit Criteria.  The Letter
of Credit:

	shall provide for sight payment upon presentation of any of the
certifications described in Section 6.2.4.1 through Section 6.2.4.5. 
	shall be issued by a nationally recognized commercial bank acceptable to
Landlord as security for Tenant's full and faithful performance of every term
and condition of this Lease (which bank shall maintain an office in the San
Francisco Bay Area to which the Letter of Credit may be presented for purposes
of immediately drawing therefrom) naming Landlord as the beneficiary thereof.

	shall provide that partial drawings are permitted,

	may be drawn upon, in the amount Landlord reasonably believes to be the
amount of unpaid Rent and/or other damages due to Landlord, in the event
Landlord certifies to the issuer any one of the following: 

	Tenant is in default under the terms of the Lease
beyond the period of time, if any, provided for the cure of such default, and
such default has not been cured by Tenant; or 
	Tenant has failed to pay Rent when due; or
	Tenant is in default under the terms of the Lease and such default is
expressly stated in the Lease to be incurable; or 
	Tenant is in default under the terms of Section 20.6 of the Lease.
	The letter of credit has not been renewed or
replaced on or before the thirtieth (30th) day prior to the date the
letter of credit would otherwise expire.

	Payment by the issuing bank under the Letter of Credit shall not be deemed
to be a cure of any default under the Lease unless and until Tenant causes the
Letter of Credit to be replenished or deposits with Landlord Cash Collateral (as
defined in Section 6.3).  
	The Letter of Credit shall have an initial term of not less than one (1)
year and shall provide that the Letter of Credit shall be renewed automatically
unless the issuing bank delivers written notice to Landlord at least thirty (30)
days prior to the expiry date of the Letter of Credit advising Landlord that the
issuing bank has elected not to renew or extend the term of the Letter of Credit
("Bank's Written Notice").  
	The issuer, form and content of the Letter of Credit are subject to
Landlord's prior approval exercised in its sole reasonable discretion. 
	Lessee shall use all reasonable efforts to obtain the issuing bank's
agreement that the Letter of Credit shall provide that it is transferable an
unlimited number of times upon Landlord's fulfillment of the issuing bank's
customary conditions thereto and paying the issuing bank's customary fees
therefor.
	Substitution of Cash
Collateral for Letter of Credit.  If despite all reasonable efforts,
Tenant is unable to provide a replacement Letter of Credit within thirty (30)
days prior to the expiry date of any Letter of Credit delivered to the Landlord
pursuant to this Section, then Tenant may deliver to Landlord cash ("Cash
Collateral") to secure its obligations to the Landlord hereunder in the
Security Amount specified above for any portion of the Security Amount that
Tenant is unable to provide by Letter of Credit.  In addition, if Landlord draws
on a Letter of Credit and, despite all reasonable efforts, Tenant is not
reasonably able to replenish the Letter of Credit to the full Security Amount
required by Section 6.7, then, in lieu of replenishing the Letter of Credit,
Tenant may deliver to Landlord Cash Collateral in an amount which, when added to
the then-unused amount of any Letter of Credit, equals the Security Amount.  In
either case, Cash Collateral shall secure the performance of each and every one
of Tenant's obligations hereunder.  Such Cash Collateral shall be held or
applied by the Landlord to any default by Tenant, in the same manner as
described in this Section 6 for amounts drawn under a Letter of Credit.  If the
aggregate of (a) the amount of any unused portion of any Letter of Credit and
(b) any Cash Collateral held by Landlord, exceeds the Security Amount, then on
demand from Tenant, Landlord shall return to Tenant Cash Collateral in an amount
equal to such excess (less any amounts owing to the Landlord
hereunder as a consequence of any uncured default by the Tenant) within ten (10)
days following Tenant's written demand therefor.  As used herein the term "Lease
Collateral" shall mean any and all Letters of Credit and/or Cash Collateral
delivered to the Landlord by Tenant pursuant to this Section 6.

	Commingling of Cash Collateral.
Landlord shall not be required to keep any Cash Collateral separate from
other funds, and may commingle the Cash Collateral with other funds of Landlord.
Unless otherwise required by law, Tenant shall not be entitled to any interest
on any Cash Collateral.  

	No Tenant Right of Offset; Pledge to Landlord's
Lender.  In no event or circumstance shall Tenant have the right to
any use of the Lease Collateral and, specifically, Tenant may not use the Lease
Collateral as a credit or to otherwise offset any payments required hereunder.
If Landlord's lender so requires, the Lease Collateral may be transferred to or
pledged by Landlord to such lender, subject to all of the terms and provisions
of this Lease and the Letter of Credit (as to Letter of Credit portion of the
Lease Collateral).
	Renewal/Non-Renewal of
Letter of Credit; Draws on Letter of Credit.  

	At any time the Lease Collateral includes a Letter of Credit, (i) if the
issuing bank shall give the Bank's Written Notice to Landlord that it will
not renew or extend the Letter of Credit for an additional twelve (12)
months beyond the then-current expiry date (or such earlier date as the Letter
of Credit is required to be maintained pursuant to Section 6.1), and (ii) if, by
and including the thirtieth (30th) day prior to the then-current
expiry date of the Letter of Credit, Tenant fails to cause the Letter of Credit
to be renewed or extended or fails to deposit with Landlord a replacement Letter
of Credit or Cash Collateral as described above, then upon such occurrence, in
the sole discretion of Landlord, Landlord may draw on the Letter of Credit in
its entirety or in part, and the proceeds of the Letter of Credit shall be held
as Cash Collateral hereunder; provided, however, that after such drawing, the
total of all Lease Collateral then held by Landlord shall not exceed the
Security Amount.  If Tenant subsequently provides a replacement Letter of Credit
that complies with the requirements of Section 6.1, then Landlord shall return
any unused portion of funds drawn on the Letter of Credit.  The failure of
Tenant to cause such renewal or extension of the Letter of Credit or to provide
a replacement Letter of Credit  or Cash Collateral in lieu thereof shall be a
default by Tenant hereunder with no right of Tenant to cure said default.

	Upon a draw on the Letter of Credit due to Tenant's
failure to cause the renewal or replacement of the Letter of Credit, Landlord
may deposit such funds, which shall be Cash Collateral, in one or more accounts,
and use such Cash Collateral to compensate Landlord for any damages to which
Landlord is or may become entitled if Tenant defaults in the performance of its
obligations under the Lease.  To the extent of Tenant's right, if any, to have
all or any portion of the Lease Collateral that is then unapplied returned to
Tenant at the time and in the amounts required by this Lease, Tenant hereby
grants to Landlord a security interest in Tenant's reversionary interest in the
portion of the Lease Collateral that Landlord has not applied toward the remedy
of a Tenant Default, and Landlord shall be entitled to perfect such security
interest in accordance with the California Commercial Code or other applicable
law.

	Replenishment of Lease
Collateral.  If Landlord uses, applies or retains all or any portion
of the Lease Collateral, then within ten (10) days after delivery of written
demand, (i) if Landlord has drawn on the Letter of Credit or used Cash
Collateral, Tenant shall cause the Letter of Credit to be increased or, subject
to the terms of this Section 6, Tenant shall deliver to Landlord Cash Collateral
so that the aggregate amount of the Lease Collateral then held by Landlord is
equal to the Security Amount.

	Transfer of Landlord's Interest in Lease.
Landlord shall have the right, if Landlord so elects, to transfer its
interest in this Lease, either as security for an indebtedness or any other
transfer, and if Landlord elects to make such a transfer, Tenant shall use all
reasonable efforts to cause the issuing bank to issue a new Letter of Credit
payable to the benefit of the transferee in lieu of the original Letter of
Credit which shall thereupon be cancelled or returned to Tenant; provided,
however, Landlord or its transferee shall pay all costs and charges imposed by
the issuing bank in connection with the transfer and shall comply with the
issuing bank's other conditions to the transfer.  Tenant agrees that, provided
the Lease Collateral is transferred to a purchaser of the Landlord's interest in
this Lease ("Purchaser") and provided such Purchaser assumes
Landlord's obligations hereunder with respect to the Lease Collateral, Landlord
shall thereupon be released from all liability for the return of the Letter of
Credit or any other Lease Collateral and any accounting in connection therewith,
and in such event Tenant agrees to look solely to the Purchaser for the return
of the Letter of Credit and any other Lease Collateral.  

	Use of Lease Collateral by Landlord.  If
Tenant is in default under this Lease beyond the period provided herein for the
cure of such default, if any, Landlord may, but without obligation to do so,
draw on the Letter of Credit or utilize any other Lease Collateral held by the
Landlord in such order as the Landlord may elect in Landlord's sole discretion
and in such amount as is sufficient, in Landlord's reasonable belief, to remedy
any default of Tenant hereunder.  

	Return of Lease Collateral.  Subject to
Landlord's rights as the holder of a security interest as provided in Section
6.6.2 above, at the expiration or earlier termination of the Lease, then
Landlord shall return the Lease Collateral (or so much thereof as remains
unapplied by Landlord) to Tenant within three weeks following the expiration or
earlier termination of the Lease; provided, however, if, at the expiration or
earlier termination of the Lease, (i) there remains any obligation of Tenant
that has not been fulfilled and (ii) the amount of funds necessary for Landlord
to fulfill such obligation on Tenant's behalf is uncertain, then that portion of
the Lease Collateral as Landlord shall reasonably determines is necessary to
protect Landlord shall be held by Landlord as security for past, present or
future damages that Landlord may suffer by virtue of Tenant's default under the
Lease, and Landlord shall have the right to use all or any portion of the
proceeds thereof to cure any and all defaults or to compensate Landlord for all
damages sustained by Landlord in connection therewith.  Subject to the other
provisions of this Section 6, Tenant waives all rights under California Civil
Code Section 1950.7, or any successor statute, to require the return of any of
the Lease Collateral.

	No Trust Relationship Created.  No trust
relationship is created herein between Landlord and Tenant with respect to the
Lease Collateral or its proceeds.  In no event or circumstance shall Tenant have
the right to any use the Lease Collateral or its proceeds as a credit or to
otherwise offset any payments required hereunder.  If Landlord's lender so
requires, the Lease Collateral and/or the proceeds thereof may be transferred to
or pledged by Landlord to such Lender, subject to all of the terms and
provisions of this Lease.  

	Survival.  The rights and obligations of
Landlord and Tenant concerning the Lease Collateral and Landlord's security
interest therein shall survive the expiration or earlier termination of this
Lease.

	CONDITION OF PREMISES; TENANT IMPROVEMENTS

Landlord, at its expense, shall construct Landlord's Work in
accordance with the provisions of Exhibit B hereto.  The Tenant, at its
expense, may, but shall not be obligated to, construct the Tenant Improvements
(defined in Exhibit B); provided, however, in the event Tenant does not
commence and complete the construction of the Required Surrender Improvements,
which shall be of a size and quality commensurate with the size and Tenant's
intended use of the Premises, Landlord shall have the right to draw on the TI
Letter of Credit (as defined in Exhibit B) in accordance with the
applicable provisions of Exhibit B.  Tenant expressly acknowledges and
agrees that neither Landlord nor any of the Landlord Parties has made any
representations as to the suitability, fitness or condition of the Building for
the conduct of Tenant's business or for any other purpose, including without
limitation, any storage incidental thereto. Any Tenant Improvements to be
constructed by Tenant hereunder shall be in compliance with the requirements of
the ADA (defined below), and all costs incurred for purposes of compliance
therewith shall be a part of and included in the costs of the Tenant
Improvements.

	Additional Rent

	Triple Net
Rent.  It is intended by Landlord and Tenant that this Lease be a
"triple net lease." Tenant's Pro Rata Share of the costs and expenses described
in this Section 8 and all other sums, charges, costs and expenses specified in
this Lease (other than Base Rent) are to be paid by Tenant to Landlord as
additional rent (collectively, "Additional Rent").  As used herein
"Tenant's Pro Rata Share" shall mean (i) 100% of all Operating
Expenses attributable only to the Building or any of Tenant's Property therein,
(ii) 19% of that portion of the Operating Expenses attributable to the Common
Areas and (iii) 100% of Tax Expenses attributable to the Building and the Lot.
Notwithstanding the other provisions of this Section 8, at any time prior to the
time the Lot is created as a separate legal tax parcel, Tenant's Pro Rata Share
of Tax Expenses shall be 100% of the Tax Expenses attributable to the Building
and 32% of the taxes imposed on the land comprising Assessor's Parcel No. 441-
0065-005-01. 

	Operating Expenses:

	Definition of Operating
Expenses:  Tenant shall pay to Landlord its Pro Rata Share of all
Operating Expenses as Additional Rent. The term "Operating Expenses" as used
herein shall mean the total amounts incurred by Landlord in connection with the
ownership, management, maintenance, repair and operation of the Premises and the
Common Areas except for the exclusions set forth in Section 8.2.3 below.
Operating Expenses may include, but are not limited to, costs incurred by
Landlord with respect to the following: 

	Landlord's costs of operating, maintaining, repairing or replacing the
Facilities and the Common Areas, including, without limitation (a) annual
insurance premium(s) for liability insurance with respect to the Common Areas
and (b) supplies, materials, equipment, rental equipment and other similar
items; and
	Landlord's premiums for (i) pollution coverage
insurance; (ii) rental value insurance against loss of Rent for a period of not
less than twelve (12) months commencing on the date of loss; (iii) all other
insurance obtained by Landlord that is not duplicative of insurance that Tenant
is required to carry pursuant to Section 14.1.2; 
	Insurance deductible amounts under any policy of insurance to the extent
relating to the Common Areas and/or Facilities located thereon;
	Landlord's costs of (a) modifications and/or new improvements to any portion
of the Project occasioned by any Laws effective subsequent to the Lease Date;
(b) reasonably necessary replacement improvements to any portion of the Project
after the Commencement Date; and (c) new improvements to the Project that reduce
operating costs or improve life/safety conditions, all of the foregoing as
reasonably determined by Landlord, in its sole but reasonable discretion; 
	Fees for business licenses required in connection with the ownership and
operation of the Project by Landlord and/or Landlord's property manager;
	a property management fee, in lieu of all other
costs of accounting, auditing, billing, postage, salaries and benefits for
clerical and supervisory employees, whether located on the Project or off-site,
payroll taxes and legal and accounting costs and all fees, incurred in
connection with the operation and management of the Project in the amount of
three percent (3%) of the Base Rent;
	security services for any portion of the Project, if and to the extent, in
Landlord's sole discretion, such services are provided by Landlord and are not
duplicative of those provided by Tenant;
	any and all levies, charges, fees and/or assessments payable to any
applicable owner's association or similar body or in connection with the
utilization of parking and/or driveways through the Adjacent Park;
and
	the costs of removing or otherwise remediating
Hazardous Materials brought on or about the Common Areas by a Midnight Dumper
(as defined in Section 29.2.4), which are not covered by pollution insurance
carried by the Landlord.

	Capital
Expenditures.  If any of the expenses described in Section 8.2.1 are
required to be capitalized under generally accepted accounting principles, then
the maximum amount of such expenses included in Operating Expenses for any
period shall be limited to an allocable portion of such capital expenditure,
together with reasonable interest thereon, amortized over the estimated useful
life of the capital item or fifteen (15) years, whichever is shorter, determined
in accordance with the method described in Section 13.2.3.
	Operating Expense Exclusions: Notwithstanding
anything to the contrary contained herein, for purposes of this Lease, the term
"Operating Expenses" shall not include any of the following: (i) depreciation or
financing of the Building or any other improvements situated within the Project
and any other expense reserves; (ii) any expense that is an Operating Expense
for which Landlord is actually reimbursed by insurance or for which Landlord is
reimbursed directly by a tenant of the Adjacent Park (other than a reimbursement
by such tenant of only such tenant's pro-rata share of such Operating Expense);
(iii) the costs of repair or other work necessitated by the exercise of the
power of eminent domain or by virtue of any Tenant Insured, Landlord Insured or
Uninsured Casualty, other than the deductible amounts under any policy of
insurance to the extent relating to the Common Areas and/or Facilities located
thereon, (which shall be governed by Sections 27 and 28); (iv) costs associated
with the investigation and/or remediation of Hazardous Materials (hereafter
defined) present in, on or about any portion of the Project, unless such costs
and expenses are the responsibility of Tenant as provided in Section 29 hereof,
in which event such costs and expenses shall be paid solely by Tenant in
accordance with the provisions of Section 29 hereof; (v) overhead and profit
increment paid to Landlord or to subsidiaries or affiliates of Landlord for
goods and/or services in the Project to the extent the same exceeds the costs of
such by unaffiliated third parties on a competitive basis; (vi) any costs for
Landlord's general administrative expenses, management of the Project or the
Adjacent Park, time spent by Landlord or any of Landlord Parties, other than the
property management fee specified in Section 8.2.1.6, (vii) any payments under a
ground lease or master lease; (viii) costs incurred by Landlord in repairing
structural portions of the roof and/or structural portions of the perimeter
walls of the Building; (ix) costs incurred by Landlord in connection with
the negotiation, performance or non-performance of any lease of the Adjacent
Park, (x) any costs arising from Landlord's default under this Lease or
Landlord's violation of Law or any Recorded Matter or the gross negligence or
willful misconduct of Landlord or any Landlord Parties (as defined in Section
31.4; (xi) any capital improvement or repair cost incurred to reduce Operating
Expenses to the extent such cost exceeds the Operating Expense reduction
attributable thereto or to the extent such improvement or repair cost exceeds
the amortized portion thereof permitted to be included in Operating Expenses
pursuant to Section 8.2.2 above; (xii) costs occasioned by the breach of lease
or violation of Law by any occupant of the Adjacent Park or their respective
agents, employees, members, officers, directors, invitees or contractors; (xiii)
costs arising as a consequence of Landlord's gross negligence, willful
misconduct, violation of Law not attributable to Tenant or any other tenant of
the Project or Adjacent Park, or breach of this Lease; (xiv) any Tax Expense,
which shall be governed by Section 8.3 below; and (xv) that portion of
Landlord's premiums for earthquake (DIC) insurance that exceeds the product of
(a) 3 and (b) an amount equal to the first year's earthquake (DIC) insurance
premium (adjusted annually on the policy anniversary date by the increase, if
any, in the Bureau of Labor Statistics Consumer Price Index, All Urban
Consumers, San Francisco-Oakland-San Jose (1982-84=100); (xvi) an amount paid to
a person, firm, corporation or other entity related to or affiliated with
Landlord that is in excess of the amount which would have been paid in an arm's
length transaction; and (xvii) subject to the provisions of Section 29, and
except as provided in Section 8.2.1.9, any costs or liabilities arising in
connection with the remediation, removal, investigation, mitigation, or clean up
of any Hazardous Materials located on the Lot or the Adjacent Park; (xviii) the
premium cost of pollution insurance described in Section 8.2.1.2 to the extent
such premium exceeds the product of (a) 3 and (b) an amount equal to the first
year's pollution insurance premium [adjusted annually on the policy anniversary
date by the increase, if any, in the Bureau of Labor Statistics Consumer Price
Index, All Urban Consumers, San Francisco-Oakland-San Jose (1982-
84=100)].
	Tax Expenses:

	The term "Tax Expenses" shall mean and include, without limitation, any
form of tax, assessment (general, special, supplemental, ordinary or
extraordinary), commercial rental tax, payments under any improvement bond or
bonds, license fees, license tax, business license fee, rental tax, transaction
tax or levy imposed by any authority having the direct or indirect power of tax
(including any city, county, state or federal government, or any school,
agricultural, lighting, drainage or other improvement district thereof) as
against any legal or equitable interest of Landlord in the Building, the Lot and
the Common Areas of the Adjacent Park (as provided in Section 8.1 and Section
8.3.2), or any other tax, fee, or excise, however described, including, but not
limited to, any value added tax, or any tax imposed in substitution (partially
or totally) of any tax previously included within the definition of real
property taxes, or any additional tax the nature of which was previously
included within the definition of real property taxes. The term "Tax Expenses"
shall not include any franchise, estate, inheritance, net income, or
excess profits tax imposed upon Landlord, or a penalty fee imposed as a result
of Landlord's failure to pay Tax Expenses when due.
	Prior to the Lot and Building being separately
assessed for Tax Expenses, Tenant shall pay to Landlord (i) 100% of Tax Expenses
attributable to the Building and (ii) 32% of the Tax Expenses attributable to
APN 441-0065-05-01.  Upon the Lot and Building being separately assessed for Tax
Expenses, Tenant shall pay 100% of the Tax Expenses applicable to the Project.
Prior to delinquency, Tenant shall pay any and all taxes and assessments levied
upon Tenant's Property (defined below in Section 12.2) located or installed in
or about the Premises by, or on behalf of Tenant.  To the extent any such taxes
or assessments are not separately assessed or billed to Tenant, then Tenant
shall pay the amount thereof as invoiced by Landlord.  Tenant shall also
reimburse and pay Landlord, as Additional Rent, within ten (10) days after
demand therefor, one hundred percent (100%) of (i) any increase in real property
taxes attributable to any and all Alterations (defined below in Section
12.2.1.1), Tenant Improvements, fixtures, equipment or other improvements of any
kind whatsoever placed in, on or about the Premises for the benefit of, at the
request of, or by Tenant, and (ii) taxes and assessments levied or assessed upon
or with respect to the possession, operation, use or occupancy by Tenant of the
Premises or any other portion of the Project or the Adjacent Park.

	Payment of Expenses: Landlord shall
estimate the Operating Expenses and Tax Expenses for the calendar year in which
the Lease commences. Commencing on the Commencement Date, one-twelfth (1/12th)
of this estimated amount shall be paid by Tenant to Landlord, as Additional
Rent, and thereafter on the first (1st) day of each month throughout the
remaining months of such calendar year. Thereafter, Landlord may estimate such
expenses for each calendar year during the Term of this Lease and Tenant shall
pay one-twelfth (1/12th) of such estimated amount as Additional Rent hereunder
on the first (1st) day of each month during such calendar year and for each
ensuing calendar year throughout the Term of this Lease. Tenant's obligation to
pay  Operating Expenses and Tax Expenses shall survive the expiration or earlier
termination of this Lease.
	Annual
Reconciliation: By June 30th of each calendar year, or as soon
thereafter as reasonably possible, Landlord shall furnish Tenant with an
accounting of actual and accrued Operating Expenses and Tax Expenses for the
prior calendar year. Within thirty (30) days of Landlord's delivery of such
accounting, Tenant shall pay to Landlord the amount of any underpayment.
Notwithstanding the foregoing, failure by Landlord to give such accounting by
such date shall not constitute a waiver by Landlord of its right to collect any
underpayment by Tenant at any time. Landlord shall credit the amount of any
overpayment by Tenant toward the next estimated monthly installment(s) falling
due, or where the Term of the Lease has expired, refund the amount of
overpayment to Tenant as soon as possible thereafter. If the Term of the Lease
expires prior to the annual reconciliation of expenses Landlord shall have the
right to reasonably estimate such expenses, and if Landlord determines that
there has been an underpayment, Landlord may draw on the Lease Collateral to
recover such underpayment.  Failure by Landlord to accurately estimate such
expenses or to otherwise perform such reconciliation of expenses shall not
constitute a waiver of Landlord's right to collect any of Tenant's underpayment
at any time during the Term of the Lease or at any time after the expiration or
earlier termination of this Lease.

	Audit: After delivery to Landlord of at
least thirty (30) days prior written notice, Tenant, at its sole cost and
expense through any accountant designated by it, shall have the right to examine
and/or audit the books and records of Landlord evidencing costs and expenses for
which Tenant was billed for the previous calendar year, during Landlord's
reasonable business hours but not more frequently than once during any calendar
year. Any such accounting firm designated by Tenant may not be compensated on a
contingency fee basis. The results of any such audit (and any negotiations
between the parties related thereto) shall be maintained strictly confidential
by Tenant and its accounting firm and shall not be disclosed, published or
otherwise disseminated to any other party other than to Landlord and its
authorized agents except as required by Law or to permit Tenant to enforce its
rights hereunder in any legal or other proceeding. Landlord and Tenant each
shall use its best efforts to cooperate in such negotiations and to promptly
resolve any discrepancies between Landlord and Tenant in the accounting of such
costs and expenses.  If Tenant gives no written request to Landlord to conduct
such an audit by December 31 immediately following the calendar year for which
the audit is sought, Tenant's right to audit shall cease, and the Landlord's
statement of costs and expenses shall be deemed accurate.
	Utilities and
Services

	Utilities.  Tenant shall pay directly to the provider of such
utility or service the cost of all (i) water, sewer use, sewer discharge fees
and sewer connection fees, gas, electricity, telephone, telecommunications,
cabling and other utilities consumed in and metered separately to the Premises
and (ii) refuse pickup and janitorial service to the Premises.  Utility expenses
incurred by Landlord (a) for operation and maintenance of the Common Areas
(other than those described in subsections (i) and (ii) above) and (b) for the
operation and maintenance of the Common Areas, shall be considered Operating
Expenses.

	Miscellaneous:  Tenant acknowledges that
the Premises may become subject to the rationing of utility services or
restrictions on utility use as required by a public utility company,
governmental agency or other similar entity having jurisdiction thereof.  Tenant
agrees that its tenancy and occupancy hereunder shall be subject to such
rationing restrictions as may be imposed upon Landlord, Tenant, the Premises,
the Adjacent Park and/or the Project, and Tenant shall in no event be excused or
relieved from any covenant or obligation to be kept or performed by Tenant by
reason of any such rationing or restrictions. If permitted by applicable Laws,
Landlord shall have the right at any time and from time to time during the Term
of this Lease to either contract for service from a different company or
companies (each such company is referred to as an "Alternate Service Provider")
other than the company or companies presently providing electricity service for
the Adjacent Park or the Project (the "Electric Service Provider") or continue
to contract for service from the Electric Service Provider, at Landlord's sole
discretion. Tenant agrees to cooperate with Landlord, the Electric Service
Provider, and any Alternate Service Provider at all times and, as reasonably
necessary, shall allow Landlord, the Electric Service Provider, and any
Alternate Service Provider reasonable access to the Building's electric lines,
feeders, risers, wiring, and any other machinery within the Premises.
	Late Charges

Any and all sums or charges set forth in this Section 10 are
considered part of Additional Rent. Tenant acknowledges that late payment by
Tenant to Landlord of Rent and all other sums due hereunder, will cause Landlord
to incur costs not contemplated by this Lease. Such costs may include, without
limitation, processing and accounting charges, and late charges that may be
imposed on Landlord by the terms of any note secured by any encumbrance against
the Premises, and late charges and penalties due to the late payment of real
property taxes on the Premises. Therefore, if any installment of Base Rent or
estimated monthly charges for Operating Expenses is not paid when due or if any
other sum payable by Tenant is not received by Landlord on or before 5:00 p.m.
Pacific Time on the date when due, Tenant shall promptly pay to Landlord a late
charge, as liquidated damages, in an, amount equal to ten percent (10%) of such
delinquent amount plus interest on such delinquent amount at a rate equal to the
prime rate (as published in the Wall Street Journal money rates section ) plus
three percent (3%) per annum ("Default Interest Rate") for every month
or portion thereof that such sums remain unpaid (excluding the first event of
Tenant's late payment of Rent, in which case no late charges shall be incurred).
Notwithstanding the foregoing, Landlord waives the late charge for the first
(1st) instance during the Term of this Lease in which Tenant fails to timely pay
Rent. If Tenant delivers to Landlord a check for which there are not sufficient
funds, Landlord may require Tenant to replace such check with a cashier's check
for the amount of such check and all other charges payable hereunder. The
parties agree that this late charge and the other charges referenced above
represent a fair and reasonable estimate of the costs that Landlord will incur
by reason of such late payment by Tenant, excluding attorneys' fees and costs.
Acceptance of any late charge or other charges shall not constitute a waiver by
Landlord of Tenant's default with respect to the delinquent amount, nor prevent
Landlord from exercising any of the other rights and remedies available to
Landlord for any other breach of Tenant under this Lease. If a late charge
becomes payable for three (3) installments of Rent, then Landlord, at Landlord's
sole option, can either require the Rent be paid quarterly in advance or be paid
monthly in advance by cashier's check or by electronic funds transfer.

	Use of Premises

	Permitted Use: The Premises are to be used solely for the
purposes and uses specified in the Basic Lease Information and for no other uses
or purposes without Landlord's prior written consent. Landlord's consent thereto
shall not be unreasonably withheld or delayed so long as the proposed use (i)
does not involve the use of Hazardous Materials other than as expressly
permitted under the provisions of Section 29 below, (ii) does not require any
additional parking spaces beyond those allocated to the Tenant pursuant to this
Lease, (iii) is compatible with the other uses then being made in the Project or
Adjacent Park and (iv) otherwise would comply with all the provisions of this
Lease.  

	Compliance with Laws, Recorded Matters and Rules
and Regulations.  The use of the Premises by Tenant, its employees,
representatives, agents, invitees, licensees, subtenants, or contractors
(collectively, "Tenant's Representatives") shall be subject and subordinate to,
and at all times in compliance with:

	any and all applicable laws, rules, codes, ordinances, statutes, orders,
regulations, use permits and/or conditions of approval of the Project imposed by
the City of Hayward, as same exist from time to time throughout the Term of this
Lease (collectively, the "Laws"), including without limitation, the requirements
of the Americans with Disabilities Act, a federal law codified at 42 U.S.C.
 12101 et seq., including, but not limited to Title III thereof, all regulations
and guidelines related thereto and all requirements of Title 24 of the
California Code of Regulations (collectively, the "ADA"), 
	any and all documents, easements, covenants, conditions, restrictions,
instruments, licenses, or similar instruments, conveyances or encumbrances which
are at any time, and from time to time, required to be made by or given by
Landlord in any manner relating to the initial development of the Project and/or
the construction of the Building and other improvements on the Lot, including
without limitation any Tenant Improvements (collectively, the "Development
Documents") together with any and all amendments and supplements thereto made
from time to time, each of which (i) has been recorded on or before the date
this Lease becomes effective or (ii) is thereafter recorded by Landlord;
provided, however, Landlord shall obtain the consent of the Tenant (which
consent shall not be unreasonably withheld or delayed) prior to recording in any
official or public records any such item if such item materially and adversely
affects (A) Tenant's use of the Premises for the use specified in the Basic
Lease Provisions, (B) the cost to Tenant of (x) constructing the initial Tenant
Improvements, (y) Tenant's operations on the Premises or (z) Tenant's
performance of its obligations under this Lease; or (C) Tenant's rights in any
Tenant's Property  (collectively, the "Recorded Matters"), and 
	any and all rules and regulations set forth in Exhibit C hereto, any
other reasonable rules and regulations promulgated by Landlord now or hereafter
reasonably enacted relating to parking and the operation of the Common Areas and
any and all rules, restrictions and/or regulations imposed by any applicable
owners association or similar entity or body in accordance with a Recorded
Matter (collectively, the "Rules and Regulations").  Notwithstanding the
foregoing, Tenant shall not be bound by and Tenant shall have no obligation to
abide by Recorded Matters that are first recorded after the date of this Lease
unless Landlord obtains the consent of Tenant (which consent shall not be
unreasonably withheld or delayed) to any Recorded Matter that materially and
adversely affects (A) Tenant's use of the Premises for the use specified in the
Basic Lease Provisions, (B) the cost to Tenant of (i) constructing the initial
Tenant Improvements, (ii) Tenant's operations on the Premises or (iii) Tenant's
performance of its obligations under this Lease, or (C) Tenant's rights in any
Tenant's Property. 
	Landlord reserves to itself the right, from time to time, to grant, without
the consent of Tenant, such easements, rights and dedications that Landlord
deems reasonably necessary, and to cause the recordation of parcel or
subdivision maps and/or restrictions, so long as such easements, rights,
dedications, maps and restrictions, as applicable, do not materially and
adversely interfere with Tenant's operations in the Premises or materially and
adversely affect the (A) Tenant's use of the Premises for the use specified in
the Basic Lease Provisions, (B) the cost to Tenant of (i) constructing the
initial Tenant Improvements, (ii) Tenant's operations on the Premises or (iii)
Tenant's performance of its obligations under this Lease, or (C) Tenant's rights
in any Tenant's Property. 
	Subject to the obligations of Landlord under the Work Letter Agreement and
under Sections 13.2 and 28 of this Lease and subject to Tenant's approval rights
set forth above, Tenant agrees to sign any documents reasonably requested by
Landlord to effectuate any such easements, rights, dedications, maps or
restrictions, including subordination of the Lease to any such document. Tenant
agrees to, and does hereby, assume full and complete responsibility to ensure
that the use of the Premises by Tenant or Tenant's Representatives and the
Tenant Improvements, are in compliance with all applicable Law throughout the
Term of this Lease.  
	Tenant shall be solely responsible for the payment of all costs, fees and
expenses associated with any modifications, or other Alterations to the Premises
and/or any other portion of the Project occasioned by the enactment of, or
changes to, any Laws arising from Tenant's particular use of the Premises or
Alterations to the Premises made by Tenant regardless of when such Laws became
effective.  
	Tenant shall not initiate, submit an application for, or otherwise request,
any land use approvals or entitlements with respect to the Premises or any other
portion of the Project without Landlord's prior written consent, which may be
given or withheld in Landlord's sole discretion; provided, however, Tenant may,
without first obtaining Landlord's prior written consent thereto but upon giving
Landlord five (5) days advance written notice, apply for a conditional use
permit and any governmental permits and approvals (other than a zoning change)
which may from time to time be required for the conduct of Tenant's permitted
use within the Premises.  Tenant shall be solely responsible for (i) the payment
of all costs and expenses of obtaining such permits and approvals and (ii)
complying with any conditions applicable to such permits or approvals.

	Prohibition on Use:  Tenant shall not
use the Premises or permit anything to be done in or about the Premises, nor
keep or bring anything therein which will in any way increase the existing rate
of or affect any policy of fire or other insurance upon the Building or any of
its contents, or cause a cancellation of any insurance policy.  No auctions may
be held or otherwise conducted in, on or about any portion of the Premises or
the Project without Landlord's prior written consent thereto.  Tenant shall not
do or permit anything to be done in or about the Premises which will in any way
obstruct or interfere with the rights of Landlord or other tenants or occupants
of any portion of the Project.  The Premises shall not be used for any unlawful
purpose. Tenant shall not cause, maintain or permit any private or public
nuisance in, on or about any portion of the Premises or the Project, including,
but not limited to, any offensive odors, noises, fumes or vibrations. Tenant
shall not damage or deface or otherwise commit or suffer to be committed any
waste in, upon or about the Premises or any other portion of the Adjacent Park
or the Project. Tenant shall not place or store, nor permit any other person or
entity to place or store, any property, equipment, materials, supplies, personal
property or any other items or goods outside of the Premises, except in the
designated storage areas therefor that are in compliance with all applicable
Laws, for any period of time. Tenant shall not permit any animals, including,
but not limited to, any household pets, to be brought or kept in or about the
Premises. Tenant shall not install any radio or television antenna, satellite
dish, microwave, loudspeaker or other device on the roof or exterior walls of
the Building or any other portion of the Project in such a manner as to overload
the structural roof system or otherwise permanently, materially and adversely
affect the condition of the Premises.  Tenant shall place no loads upon the
floors, walls, roof structure or ceilings in excess of the maximum designed load
permitted by the applicable Uniform Building Code or which may damage the
Building or outside areas within the Project. Tenant shall not place any harmful
liquids in the drainage systems or dump or store waste materials, refuse or
other such materials, or allow such materials to remain outside the Building
area, except for any materials which may be stored in refuse dumpsters and other
storage areas and containers that are in full compliance with all applicable
Laws.
	Alterations; and Surrender
of Premises

	Alterations: Tenant shall not install any signs,
fixtures, improvements, nor make or permit any other alterations or additions
(individually, an "Alteration", and collectively, the "Alterations") to the
Premises without the prior written consent of Landlord, which consent shall not
be unreasonably withheld or delayed.  Notwithstanding the foregoing, Landlord's
consent shall not be required for any of the following Alterations, but Landlord
may require the removal thereof upon the expiration or earlier termination of
this Lease: (i)  Alterations that do not adversely affect the Building systems
and that cost less than Fifty Thousand Dollars ($50,000) per Alteration or
series of related Alterations and (ii) do not affect the structural integrity of
the Premises or the Building. Not less than ten (10) days prior to commencing
any Alteration, Tenant shall deliver to Landlord written notice of the date that
Tenant intends to commence construction, so that Landlord may timely post a
Notice of Non-Responsibility.  Tenant shall also notify Landlord of the date it
actually commences such Alteration.  In all events, Tenant shall obtain all
permits or other governmental approvals prior to commencing any of such work and
deliver a copy of same and the plans therefor to Landlord. All Alterations shall
be at Tenant's sole cost and expense, and shall be installed by a licensed
contractor (reasonably approved by Landlord) in compliance with all applicable
Laws (including, but not limited to, the ADA), Development Documents, Recorded
Matters, and Rules and Regulations. Tenant shall keep the Premises and the
property on which the Premises are situated free from any liens arising out of
any work performed, materials furnished or obligations incurred by or on behalf
of Tenant. Tenant shall, prior to construction of any and all Alterations, cause
its contractor(s) and/or major subcontractors) to provide insurance as
reasonably required by Landlord, and Tenant shall provide such assurances to
Landlord, including without limitation, waivers of lien, surety company payment
and performance bonds as Landlord may reasonably require to assure payment of
the costs thereof to protect Landlord and the Project from and against any loss
from any mechanic's, materialmen's or other liens.  Notwithstanding any
provisions of this Section 12.1 to the contrary, if Tenant delivers the TI
Letter of Credit in accordance with the provisions of Section 8 of the Work
Letter Agreement attached as  Exhibit B, then no payment or performance
bond shall be required with respect to the initial Tenant Improvements described
in Exhibit B hereto.
	Surrender of Premises: 

	As used in this Section 12.2, the following definitions shall apply:

	"Tenant's Property" shall mean and refer
to the Tenant Improvements and any and all signs or signage, equipment, trade
fixtures, computer wiring and cabling, furnishings, inventories, goods,
furniture, fixtures, alterations, modifications and other items of construction
and property installed in the Premises or on the Lot at the expense of
Tenant.
	"Required Surrender Improvements" shall mean only those Tenant
Improvements that Tenant elects to install in or about the Premises or the Lot
at Tenant's expense that are described on Exhibit H hereto and such
Alterations thereto of the type described in said Exhibit H as are
permitted by this Lease.
	"Optional Surrender Improvements" shall mean all of the Tenant
Improvements, or subsequent Alterations thereto, other than (i) the
Required Surrender Improvements, (ii) the Required Removal Improvements and
(iii) those improvements to the Premises made by Tenant following a written
request to Landlord for consent thereto stating that Tenant requests Landlord's
consent not to be obligated to remove such improvements at the expiration or
earlier termination of the Lease and to which request Landlord did not state in
writing that Tenant is obligated to remove at the expiration or the earlier
termination of this Lease.
	"Required Removal Improvements" shall mean the aggregate of (i)
any Tenant's Property that is or becomes contaminated with Tenant's Hazardous
Material(s), (ii) any and all signs and signage, and (iii) those Alterations to
the Premises made by Tenant following a written request to Landlord for consent
thereto stating that Tenant requests Landlord's consent not to be obligated to
remove such Alterations at the expiration or earlier termination of the Lease
and to which request Landlord stated in writing that Tenant is obligated to
remove the referenced Alterations at the expiration or the earlier termination
of this Lease.
	"Tenant's Hazardous Materials" shall mean Hazardous Materials
spilled or released by Tenant or Tenant's Representatives or whose presence on
or about the Project or Adjacent Park is the result of acts of Tenant or
Tenant's Representatives.

	At the expiration of the
Term or earlier termination of this Lease, Tenant shall surrender to Landlord
(i) the Building, (ii) those of the Optional Surrender Improvements that Tenant
elects to surrender, and (iii) the Required Surrender Improvements, all of which
shall be (a) in the same condition as when received (damage by acts of God,
casualty, latent defects in Landlord's Work and normal wear and tear excepted),
but with all interior walls cleaned, any carpets cleaned, all floors cleaned and
waxed, all non-working light bulbs and ballasts replaced and all roll-up doors
and plumbing fixtures in good condition and working order, and (b) in compliance
with the surrender provisions of this Section 12.2 and Section 29.  Normal wear
and tear shall not include any damage or deterioration that would have been
prevented by proper maintenance by Tenant, or Tenant otherwise performing all of
its obligations under this Lease.  The provisions of this Section 12.2.2
shall survive the expiration or earlier termination of the Lease.
	On or before (i) the expiration of the Lease, (ii) the date of termination
of the lease as a consequence of a Tenant default, or (iii) the 90th
day following a termination of this Lease prior to its expiration for a reason
other than as a consequence of Tenant's default but subject to Tenant's
obligation to pay Rent with respect to the Premises during such 90 day period,
Tenant shall remove from the Premises and the other portions of the Project the
Required Removal Property, all of Tenant's Property other than the
Required Surrender Improvements and those of the Optional Surrender Improvements
that Tenant elects to surrender.  Tenant shall repair any damage caused by such
removal of Tenant's Property. 
	 Any of Tenant's Property not so removed by Tenant as required herein may,
at Landlord's election, be deemed abandoned and may be stored, removed,
transported (under manifest using Tenant's name and hazardous materials
generator number) and disposed of by Landlord at Tenant's expense, and Tenant
waives all claims against Landlord for any damages resulting from Landlord's
retention and disposition of such property; provided, however, Tenant shall
remain liable to Landlord for all costs incurred in storing, transporting and
disposing of such abandoned property of Tenant.  All Required Surrender
Improvements and all Optional Surrender Improvements that Tenant elects to
surrender (other than the Required Removal Improvements) shall remain in the
Premises as the property of Landlord upon the termination of this Lease.  If the
Premises are not surrendered at the expiration of the Term or earlier
termination of this Lease, in accordance with the provisions of this Section 12
and Section 29 below, Tenant shall continue to be responsible for the payment of
Rent (as the same may be increased pursuant to Section 22 below) until the
Premises are so surrendered in accordance with said provisions. Tenant shall
indemnify, defend and hold the Landlord Indemnitees (hereafter defined in
Section 15.1) harmless from and against any and all damages, expenses, costs,
losses or liabilities arising from any delay by Tenant in so surrendering the
Premises including, without limitation, any damages, expenses, costs, losses or
liabilities arising from any claim against Landlord made by any succeeding
tenant or prospective tenant founded on or resulting from such delay and losses
and damages suffered by Landlord due to lost opportunities to lease any portion
of the Premises to any such succeeding tenant or prospective tenant, together
with, in each case, actual attorneys' fees and costs.

	Ownership by Tenant.  During the term of
this Lease, Tenant's Property shall at all times be owned by Tenant, and Tenant
shall be entitled to all depreciation, amortization and other tax benefits with
respect thereto.  Landlord shall have no lien or other interest whatsoever in
any such item of Tenant's Property during the Lease Term, and, except as
expressly set forth in this Section 12 to the contrary, Landlord hereby waives
all liens and interests in Tenant's Property and shall have no right to require
surrender of any Tenant's Property.  Within ten (10) days following Tenant's
request, Landlord shall execute documents in form reasonably acceptable to
Tenant and Landlord evidencing Landlord's waiver of any right, title, lien or
interest in such property of Tenant located in the Premises other than the
rights of Landlord set forth in this Section 12.  If Landlord incurs any cost or
expense, including the cost of Landlord's employees, in connection with
obtaining the consent of Landlord's lender to any requirement of Tenant in
connection with Tenant's Property or Tenant's Property, Tenant shall pay
Landlord, as Additional Rent, for such cost or expense within ten (10) days
after Landlord notifies Tenant of the amounts due.

	Survival.  The provisions of this
Section 12 shall survive the expiration or earlier termination of the
Lease.
	Repairs and
Maintenance

	Tenant's Repairs
and Maintenance Obligations.  Except for those portions of the
Project to be maintained by Landlord as provided in Sections 13.2 below and
subject to Sections 14.5, 27 and 28, Tenant shall, at its sole cost and expense,
keep and maintain all parts of the Premises and Required Surrender Improvements
in good, clean and safe condition and repair (ordinary wear and tear excepted),
promptly making all necessary repairs and replacements, whether ordinary or
extraordinary, with materials and workmanship of the same character, kind and
quality as the original thereof, all of the foregoing to the reasonable
satisfaction of Landlord, including, but not limited to, repairing any damage
caused by Tenant or any of Tenant's Representatives, and replacing any property
so damaged by Tenant or any of Tenant's Representatives.  Without limiting the
generality of the foregoing, Tenant shall be solely responsible for promptly
maintaining, repairing and replacing (a) all mechanical systems, heating,
ventilation and air conditioning systems serving the Premises, (b) all plumbing
work and fixtures serving the Premises, (c) electrical wiring systems, fixtures
and equipment exclusively serving the Premises, (d) all interior lighting
(including, without limitation, light bulbs and/or ballasts) (e) all glass,
windows, window frames, window casements, skylights, interior and exterior
doors, door frames and door closers, (f) all roll-up doors, ramps and dock
equipment, including without limitation, dock bumpers, dock plates, dock seals,
dock levelers and dock lights, (g) all tenant signage, (h) lifts for disabled
persons serving the Premises, (i) sprinkler systems, fire protection systems and
security systems for the Premises, (j) the roof and roof coverings (other than
the structural components of the roof) and (k) all partitions, fixtures,
equipment, interior painting, interior walls and floors, and floor coverings of
the Premises and every part thereof.  Additionally, Tenant shall be solely
responsible for performance of the regular removal of trash and debris.
	Maintenance by
Landlord: 

	Subject to the provisions of Sections 13.1, 14.5, 27 and 28, Landlord, at
its sole cost and expense, agrees to repair and maintain in good condition and
repair (ordinary wear and tear excepted) (i) the roof structure, foundation,
exterior and load bearing walls of the Premises and (ii) damage to the Project
to the extent arising from Landlord's default under this Lease or the gross
negligence or willful misconduct of Landlord or Landlord Parties. 
	Subject to the provisions of Sections 13.1, 14.5, 27 and 28, and subject to
Landlord's right to receive reimbursement therefor as provided in this Lease,
Landlord agrees to repair and maintain in good condition and repair (ordinary
wear and tear excepted) the Common Areas. Notwithstanding anything in this
Section 13 to the contrary, subject to Sections 13.1, 14.5, 27 and 28, (i)
Landlord shall have the right to either repair or to require Tenant to repair
any damage to any portion of the Adjacent Park and the Project caused by or
created due to any negligent act, omission, or willful misconduct of Tenant or
any of Tenant's Representatives and to restore the Premises and the other
affected portions of the Project and the Adjacent Park, as applicable, to the
condition existing prior to the occurrence of such damage.  
	Notwithstanding anything to the contrary in Section
13, if any maintenance and repair to be performed by Tenant pursuant to Section
13.1 or if any maintenance, improvement, alteration or other construction costs
reimbursable by Tenant to Landlord pursuant to any provision of this Lease
(other than Section 27), are of a capital nature (in that they are required to
be capitalized under generally accepted accounting principles), then upon demand
by the Tenant, Landlord shall perform such work and such costs or allocable
portions thereof, together with reasonable interest thereon, shall be amortized
on a straight-line basis over the estimated useful life of the capital item or
fifteen (15) years, whichever is shorter, as reasonably determined by Landlord,
and Tenant's reimbursement obligation shall be limited to a monthly
reimbursement of such monthly amortized amount commencing on the first day of
the month following the completion of the work and continuing on the first day
of each month during the Lease Term until fully amortized.  Tenant shall
promptly report, in writing, to Landlord any defective condition known to it
which Landlord is required to repair, and until such notice is given, Landlord
shall have no liability for failing to make the repair.

	Tenant's Failure to Perform Repairs and Maintenance
Obligations: If Tenant refuses or neglects to repair and maintain the
Premises and the other areas properly as required herein and to the reasonable
satisfaction of Landlord, Landlord may, but without obligation to do so, at any
time make such repairs or maintenance without Landlord having any liability to
Tenant for any loss or damage that may accrue to Tenant's Property or to
Tenant's business by reason thereof, except to the extent any damage is caused
by the willful misconduct or gross negligence of Landlord or any of the Landlord
Parties.  If Landlord makes such repairs or maintenance, upon completion thereof
Tenant shall pay to Landlord, as Additional Rent, Landlord's costs and expenses
incurred therefor.  The rights and obligations of Tenant hereunder shall survive
the expiration of the Term of this Lease or the earlier termination thereof.
Tenant hereby waives any right to repair at the expense of Landlord under any
applicable Laws now or hereafter in effect with respect to the
Premises.
	Insurance

	Tenant Insurance:
Tenant shall maintain in full force and effect at all times during the Term of
this Lease, at Tenant's sole cost and expense, for the protection of Tenant and
Landlord, and, in the case of the coverages identified in Sections 14.1.1 and
14.1.2, if their name(s) have been given to Tenant in writing as an additional
insured for the policy in question, each of Landlord's property management
company or agent, and Landlord's lender(s) having a lien against the Premises or
any other portion of the Project, as their interests may appear, policies of
insurance issued by a carrier or carriers reasonably acceptable to Landlord and
its lender which afford the coverages described below in this Section 14.1.
Tenant shall not pledge or otherwise encumber its right to the proceeds of
insurance that Tenant is required to carry pursuant to this Lease.  If Tenant
has other locations which it owns or leases, Tenant shall not combine the
Property Insurance required of Tenant hereunder with the Property Insurance for
such other locations.  Tenant shall have the right to provide any other
insurance coverage which it is obligated to carry pursuant to the terms of this
Lease under a blanket insurance policy, provided such blanket policy expressly
affords coverage for the Premises in the amounts and types required by this
Lease.  Any such policy covering both the Premises and such other locations
shall include an aggregate limit per location endorsement.  Notwithstanding the
foregoing provisions of this Section 14.1, Tenant shall not carry
the coverages identified in Section 14.1.2 at any time when Landlord is
obtaining such insurance coverage pursuant to the provisions of Section
27.7.

	Coverage equal to or greater than that afforded by a
commercial general liability insurance policy (claims made form) providing
coverage of not less than Five Million Dollars ($5,000,000) in the aggregate
limit (including all excess/umbrella insurance) against any and all claims for
bodily injury and property damage occurring in, on or about the Premises arising
out of Tenant's and Tenant's Representatives' use or occupancy of the Premises
and including coverage for the contractual liability of Tenant under this Lease,
fire damage, premises liability, personal injury and completed operations
("Liability Insurance"); and 
	Coverage, in an amount equal to the full replacement value
of the Landlord's Work and the Required Surrender Improvements (collectively
"Insured Premises") as the same may exist from time to time without
deduction for depreciation (all such insurance described in this Section 14.1.1
is hereafter referred to as "Property Insurance") for loss or damage
thereto from (a) all perils included within the classification of fire, extended
coverage, vandalism, malicious mischief, all "special form" or
"all risk" perils (as such terms are used in the insurance industry),
(b) if the Premises is in a flood plain, flood insurance, and
(c) earthquake insurance, for so long as the premium for earthquake insurance do
not exceed the total of (i) three (3) times an amount equal to the first year's
earthquake (DIC) insurance premium (adjusted annually on the policy anniversary
date by the increase, if any, in the Bureau of Labor Statistics Consumer Price
Index, All Urban Consumers, San Francisco-Oakland-San Jose (1982-84=100) and
(ii) any amount that Landlord may elect, but shall not be obligated, to
contribute to the payment of such premiums.
	Worker's compensation and employer's liability insurance as required by law,

	Comprehensive automobile liability insurance with a combined single limit of
at least $1,000,000 per occurrence for claims arising out of any company owned
automobiles; 
	Property Insurance covering Tenant for damage to or loss of any of Tenant's
Property (other than the Required Surrender Improvements) located in, on or
about the Premises, 
	Coverage for business interruption of Tenant; and 
	If the property of any of Tenant's invitees, vendors or customers is to be
kept in the Premises, warehouser's legal liability or bailee customers insurance
for the full replacement cost of the property belonging to such parties and
located in the Premises; and 
	Such other insurance, or higher limits of liability, as is then customarily
required for similar types of buildings used for uses like or similar to that of
Tenant within the general vicinity of the Project or as may be reasonably
required by any of Landlord's lenders.  

	Insurance Policies: Insurance
required to be maintained by Landlord or Tenant shall be written by companies
(i) licensed to do business in the State of California, (ii) domiciled in the
United States of America, and (iii) having a "General Policyholders Rating" of
at least A:X (or such higher rating as may be required by a lender having a lien
on the Premises) as set forth in the most current issue of "A.M. Best's Rating
Guides."   Each such policy shall contain a non-imputation endorsement as among
the named insureds and any additional insureds or loss payees.  Any deductible
amounts under any of the insurance policies required hereunder to be obtained by
Tenant shall not exceed (i)  Ten Thousand Dollars ($10,000) with respect to the
liability policy, (ii) Twenty Five Thousand Dollars ($25,000) with respect to
Property Insurance other than earthquake (DIC) insurance, and (iii) with respect
to earthquake (DIC) insurance, 15% of the replacement value of the Insured
Premises or such other deductible amount as is available at commercially
reasonable rates. Tenant shall deliver to Landlord evidence of insurance (in the
form of Accord Form 27 or other form reasonably acceptable to Landlord and its
lenders) and true and complete copies of any and all endorsements required
herein for all insurance required to be maintained by Tenant hereunder,
including under Exhibit B to the Lease, at the time of Tenant's first
entry into the Premises for the purpose of constructing any portion of Tenant's
Work (as defined in Exhibit B hereto). Tenant shall, at least fifteen
(15) days prior to expiration of each policy, furnish Landlord with certificates
of renewal or "binders" thereof. Each certificate shall expressly provide that
such policies shall not be cancelable or otherwise subject to material
modification except after thirty (30) days prior written notice to the parties
named as additional insureds as required in this Lease (except for cancellation
for nonpayment of premium, in which event cancellation shall not take effect
until at least ten (10) days' notice has been given to Landlord). 

	Additional Insureds and Coverage:
Additionally, all of such policies required of the Tenant hereunder shall
provide for severability of interest.  All insurance to be maintained by Tenant
shall, except for workers' compensation and employer's liability insurance, be
primary, without right of contribution from insurance maintained by Landlord.
Any umbrella/excess liability policy (which shall be in "following form") shall
provide that if the underlying aggregate is exhausted, the excess coverage will
drop down as primary insurance.  The limits of insurance maintained by Tenant
shall not limit Tenant's liability under this Lease. It is the parties'
intention that the insurance to be procured and maintained by Tenant as required
herein shall provide coverage for any and all damage or injury arising from or
related to Tenant's operations of its business and/or Tenant's or Tenant's
Representatives' use of the Premises and any of the areas within the Project or
Common Areas. Notwithstanding anything to the contrary contained herein, during
any time period when Landlord or its constituent members (collectively
"Park Owner") own(s) an interest in the Adjacent Park, to the extent
the Park Owner's cost of maintaining insurance with respect to buildings in the
Adjacent Park is increased as a result of Tenant's negligent acts or omissions,
breach of this Lease, Alterations, improvements, use or occupancy of the
Premises, then Tenant shall pay one hundred percent (100%) of, and for, each
such increase as Additional Rent.

	Failure of Tenant to Purchase and Maintain
Insurance: If Tenant fails to obtain and maintain the insurance
required herein throughout the Term of this Lease, Landlord may, but without
obligation to do so, purchase the necessary insurance and pay the premiums
therefor. If Landlord so elects to purchase such insurance, Tenant shall
promptly pay to Landlord as Additional Rent, the amount so paid by Landlord,
upon Landlord's demand therefor. In addition, Landlord may recover from Tenant,
and Tenant agrees to pay as Additional Rent, any and all losses, damages,
expenses and costs which Landlord may sustain or incur by reason of Tenant's
failure to obtain and maintain such insurance.
	Waiver of
Subrogation: Notwithstanding anything to the contrary in this Lease,
Landlord and Tenant hereby mutually waive their respective rights of recovery
against each other and against their respective employees, officers, directors,
members, tenants, subtenants and assigns, for any loss of, or damage to, either
parties' property to the extent that such loss or damage is a loss covered by an
insurance policy in effect at the time of such loss or damage (or would have
been a loss covered by an insurance policy required to be in effect but not
actually in effect). Each party shall obtain any special endorsements, if
required by its insurer, whereby the insurer waives its rights of subrogation
against the other party. This provision is intended to waive fully, and for the
benefit of the parties hereto and their respective employees, officers,
directors, members, tenants, subtenants and assigns, any rights and/or claims
which might give rise to a right of subrogation in favor of any insurance
carrier.
	Landlord's
Insurance:  Subject to Landlord's right to reimbursement for the cost
thereof pursuant to Section 8, Landlord shall obtain and keep in force during
the term of this Lease (i) Property Insurance with respect to loss or damage to
the improvements located in the Common Areas, (ii) a policy of rental loss
insurance insuring the Rent payable by the Tenant hereunder for a period of not
less than twelve (12) months in the event of any loss covered by the policy
described in Section 14.1.2 above, and (iii) if Landlord carries the
Property Insurance pursuant to the provisions of Section 27.7, only if Landlord
elects to do so, a policy of earthquake insurance (DIC) with respect to the
Insured Premises and the Common Areas in such amounts as Landlord may determine
to the extent such coverage is obtainable at commercially reasonable rates.

	Limitation of Liability and Indemnity

	Tenant
Indemnification:  Except to the extent of damage resulting from the
breach by Landlord of its obligations hereunder or from the active gross
negligence or willful misconduct of Landlord or any of the Landlord Parties,
Tenant agrees to protect, defend (with counsel acceptable to Landlord) and hold
Landlord, the Landlord Parties and Landlord's lenders (collectively, the
"Landlord Indemnitees") harmless and indemnify Landlord and the Landlord
Indemnitees from and against all liabilities, damages, demands, penalties,
costs, claims, losses, judgments, charges and expenses (including reasonable
attorneys', fees, costs of court and expenses necessary in the prosecution or
defense of any litigation including the enforcement of this provision)
(collectively, "Claims") to the extent arising from or in any way related to,
directly or indirectly, (i) Tenant's or Tenant's Representatives' use of the
Premises and Common Areas, (ii) the conduct of Tenant's business, (iii) from any
activity, work or thing done, permitted or suffered by Tenant or Tenant's
Representatives in the Premises or any activity, work or thing done by Tenant or
Tenant's Representatives in the Common Areas, (iv) in any way connected with the
Alterations or with the Tenant's Property in the Premises or the Common Areas,
including, but not limited to, any liability for injury to person or property of
Tenant, Tenant's Representatives or third parties, and/or (v) Tenant's failure
to perform any covenant or obligation of Tenant under this Lease. Tenant agrees
that the obligations of Tenant herein shall survive the expiration or earlier
termination of this Lease,

	Waiver of Landlord Liability:  Except to
the extent of damage resulting from the breach by Landlord of its obligations
hereunder or from the active gross negligence or willful misconduct of (i)
Landlord or (ii) Landlord Parties to the fullest extent permitted by law, Tenant
agrees that neither Landlord nor any of the Landlord Indemnitees shall at any
time or to any extent whatsoever be liable, responsible or in any way
accountable for any loss, liability, injury, death or damage to persons or
property which at any time may be suffered or sustained by Tenant, Tenant's
Representatives or by any person(s) whomsoever who may at any time be using,
occupying or visiting the Premises or the Common Areas, including, but not
limited to, any acts, errors or omissions within the Common Areas of any tenants
or occupants of the Adjacent Park.  Tenant shall not, in any event or
circumstance, be permitted to offset or otherwise credit against any payments of
Rent required herein for matters for which Landlord may be liable hereunder.
Landlord and the Landlord Parties shall not be-liable for any interference with
light or air, or for any latent defect in the Premises or the
Building.
	Assignment and
Subleasing

	Prohibition: Tenant shall not, without the prior written consent
of Landlord, assign, mortgage, hypothecate, encumber, grant any license or
concession, pledge or otherwise transfer this Lease or any interest herein,
permit any assignment or other such transfer of this Lease or any interest
hereunder by operation of law; sublet the Premises or any part thereof, or
permit the use or occupancy of the Premises by any persons other than Tenant and
Tenant's Representatives (all of the foregoing are sometimes referred to
collectively as "Transfers" and any person to whom any Transfer is made or
sought to be made is sometimes referred to as a "Transferee"). No consent
to any Transfer shall constitute a waiver of the provisions of this Section 16,
and all subsequent Transfers may be made only with the prior written consent of
Landlord, which consent shall not be unreasonably withheld, but which consent
shall be subject to the provisions of this Section 16.
	Request for
Consent: If Tenant seeks to make a Transfer, Tenant shall notify
Landlord, in writing, and deliver to Landlord at least thirty (30) days (but not
more than one hundred eighty (180) days) prior to the proposed commencement date
of the Transfer (the "Proposed Effective Date") the following information and
documents (the "Tenant's Notice"): (i) a description of the portion of the
Premises to be transferred (ii) all of the terms of the proposed Transfer
including without limitation, the Proposed Effective Date, the name and address
of the proposed Transferee, and a copy of the existing or proposed assignment,
sublease or other agreement governing the proposed Transfer ("Transfer
Document(s)"); (iii) current financial statements of the proposed
Transferee certified by an officer, member, partner or owner thereof, and any
such other information as Landlord may then reasonably require, including
without limitation, audited financial statements for the previous three (3) most
recent consecutive fiscal years; (iv) the Plans and Specifications (defined
below), if any; and (v) such other information as Landlord may then reasonably
require. Tenant shall give Landlord the Tenant's Notice in accordance with the
provisions of Section 31.9. Within thirty (30) days after Landlord's receipt of
the Tenant's Notice (the "Landlord Response Period") Landlord shall notify
Tenant, in writing, of its determination with respect to such requested proposed
Transfer. If Landlord consents to the requested proposed Transfer, Tenant may
thereafter assign its interests in and to this Lease or sublease all or a
portion of the Premises to the same party and on the same terms as set forth in
the Tenant's Notice. If Landlord fails to respond to Tenant's Notice within
Landlord's Response Period, then, after Tenant shall have given to Landlord a
second notice in accordance with the provisions of Section 31.9 and, if within
ten (10) days after Landlord's receipt of such Second Notice (the "Second
Response Period"), Landlord fails to respond thereto prior to the end of the
Second Response Period, the proposed Transfer shall then be deemed approved by
Landlord.

	Criteria for Consent: Tenant
acknowledges and agrees that, among other circumstances for which Landlord could
reasonably withhold consent to a proposed Transfer, it shall be reasonable for
Landlord to withhold its consent where (a) Tenant is in default of its
obligations under this Lease beyond applicable notice and cure periods and such
default is not cured on or before the effective date of the transfer in
question, (b) the use to be made of the Premises by the proposed Transferee is
prohibited under this Lease or differs from the uses permitted under this Lease,
(c) the proposed Transferee or its business is subject to compliance with
additional requirements of the ADA beyond those requirements which are
applicable to Tenant, unless the proposed Transferee shall (1) first deliver
plans and specifications for complying with such additional requirements (the
"Plans and Specifications") and obtain Landlord's written consent thereto, and
(2) comply with all Landlord's conditions contained in such consent, (d) the
proposed Transferee does not intend to occupy a substantial portion of the
Premises assigned or sublet to it, (e) Landlord reasonably disapproves of the
proposed Transferee's business operating ability or history, reputation or
creditworthiness or the character of the business to be conducted by the
proposed Transferee at the Premises, (f) Landlord otherwise determines that the
proposed Transfer would have the effect of decreasing the value of the Building
or the Project, and if Landlord owns the Adjacent Park, the Adjacent Park, or
increasing the expenses Landlord will bear without reimbursement from Tenant
associated with operating, maintaining and repairing the Project, or (g) the
proposed Transferee will use, store or handle Hazardous Materials (defined
below) in or about the Premises of a type, nature or quantity not then permitted
by this Lease.

	Effectiveness of Transfer and Continuing
Obligations: Prior to the Proposed Effective Date as stated in
Tenant's Notice, Tenant shall deliver to Landlord (i) a counterpart of the fully
executed Transfer Document(s), (ii) an executed Hazardous Materials Disclosure
Certificate substantially in the form of Exhibit E hereto (the
"Transferee HazMat Certificate"), and (iii) Landlord's standard form of
Consent to Assignment or Consent to Sublease, as applicable, executed by Tenant
and the Transferee in which each of Tenant and the Transferee confirms its
obligations pursuant to this Lease. Failure or refusal of a Transferee to
execute any such consent instrument shall not release or discharge the
Transferee from its obligation to do so or from any liability as provided
herein. The voluntary, involuntary or other surrender of this Lease by Tenant,
or a mutual cancellation by Landlord and Tenant, shall not work a merger, and
any such surrender or cancellation shall, at the option of Landed, either
terminate all or any existing subleases or operate as an assignment to Landlord
of any or all of such subleases. Each permitted Transferee who takes an
assignment of this Lease shall assume and be deemed to assume this Lease and
shall be and remain liable jointly and severally with Tenant for payment of Rent
and for the due performance of, and compliance with all the terms, covenants,
conditions and agreements herein contained on Tenant's part to be performed or
complied with, for the Term of this Lease and each Transferee who receives a
sublease shall be bound by and shall not violate any of the provisions of this
Lease.  No Transfer shall affect the continuing primary liability of Tenant
(which, following assignment, shall be joint and several with the assignee), and
Tenant shall not be released from performing any of the terms, covenants and
conditions of this Lease.  An assignee of Tenant shall become directly liable to
Landlord for all obligations of Tenant hereunder, but no Transfer by Tenant
shall relieve Tenant of any obligations or liability under this Lease whether
occurring before or after such consent, assignment, subletting or other
Transfer. The acceptance of any or all of the Rent by Landlord from any other
person (whether or not such person is an occupant of the Premises) shall not be
deemed to be a waiver by Landlord of any provision of this Lease or to be a
consent to any Transfer. For purposes hereof, if Tenant is a business entity,
direct or indirect transfer of fifty percent (50%) or more of the ownership
interest of the entity (whether in a single transaction or in the aggregate
through more than one transaction) to any party other than an Affiliate in
accordance with the provisions of Section 16.7 hereof shall be deemed a Transfer
and shall be subject to all the provisions hereof. Any transfer made without
Landlord's prior written consent, shall, at Landlords option, be null, void and
of no effect, or, at Landlord's option, shall constitute a material and
incurable default by Tenant. As Additional Rent hereunder, Tenant shall pay to
Landlord a fee in the amount of one thousand two hundred dollars ($1,200) plus
Tenant shall promptly reimburse Landlord for actual legal and other expenses
incurred by Landlord in connection with any actual or proposed Transfer.

	Transfer Premium: If Landlord consents
to a Transfer, as a condition thereto which the Tenant hereby agrees is
reasonable, Tenant shall pay to Landlord, as Additional Rent fifty percent (50%)
of any "Transfer Premium". The term "Transfer Premium" shall mean the
lesser of (i) the amount by which (a) the "fair market rental
value" of the affected Premises (or so much thereof as is transferred)
exceeds (b) the sum of (x) and (y) where (x) equals the Rent (or pro rata
portion of the Rent for any partial Transfer) reserved in this Lease for such
space and (y) equals the aggregate of any brokerage commissions and attorneys'
fees incurred by Tenant in obtaining and negotiating the Transfer or (ii) the
amount by which (a) all rent, additional rent and other consideration payable
and received by the Tenant from such Transferee to Tenant with respect to the
transfer of this Lease and the Premises either initially or over the term of the
Transfer exceeds (b) the sum of (x) and (y) where (x) equals the Rent (or pro
rata portion of the Rent) reserved in this Lease for such space and (y) equals
the aggregate of any brokerage commissions and attorneys' fees incurred by
Tenant in obtaining and negotiating the Transfer, and the cost incurred by
Tenant in performing its obligations for the benefit of the Transferee under the
terms of the Transfer Document(s). As used herein "fair market rental value of
the affected Premises" means the fair market rental value of those improvements
constituting the Premises which were constructed by the Landlord pursuant to the
Work Letter which are being transferred to the Transferee (without regard to (i)
the consideration actually paid by the Transferee or (ii) the value of any
Tenant's Property involved in the Transfer), as determined by the agreement of
the parties, or if the parties cannot agree within ten (10) days following the
demand by either party for agreement, by an appraisal conducted in the manner
described in Section 3.3.3.  Notwithstanding the foregoing, if the Transfer
Premium is not determined prior to the time that Landlord's response to Tenant's
request for consent to the transfer is required to be delivered hereunder, then,
if the other conditions to Landlord's consent set forth herein are met, Landlord
shall provide its consent, and thereafter the Transfer Premium shall be
determined in accordance with this Section.

	Waiver: Notwithstanding any Transfer, or
any indulgences, waivers or extensions of time granted by Landlord to any
Transferee, or failure by Landlord to take action against any Transferee, Tenant
agrees that Landlord may, at its option, proceed against Tenant without having
taken action against or joined such Transferee, except that Tenant shall have
the benefit of any indulgences, waivers and extensions of time granted to any
such Transferee.
	Affiliated Companies/
Restructuring of Business Organization: Notwithstanding anything to
the contrary in this Section 16, the assignment or subletting by Tenant of all
or any portion of this Lease or the Premises to (i) a parent or subsidiary of
Tenant, or (ii) any person or entity which controls, is controlled by or under
the common control with Tenant, or (iii) any entity which purchases all or
substantially all of the assets of Tenant, or (iv) any entity into which Tenant
is merged or that is merged into Tenant or consolidated (all such persons or
entities described in clauses (i), (ii), (iii) and (iv) being sometimes herein
referred to as "Affiliates") shall not be deemed a Transfer under this Section
16 (hence, the aforesaid events shall not be subject to obtaining Landlord's
prior consent), and Landlord shall not have any right to receive any Transfer
Premium in connection therewith, provided in all instances that:

	Tenant shall have delivered to Landlord all the same information as is
required by Section 16.2 with respect to a Transfer that requires Landlord's
consent;
	any such Affiliate was not formed as a subterfuge to avoid the obligations
of this Section 16;
	Tenant shall give Landlord prior notice of any such assignment or sublease
to an Affiliate;
	the successor of Tenant has as of the effective date of any such assignment
or sublease, a tangible net worth and net assets, in the aggregate, computed in
accordance with generally accepted accounting principles (but excluding goodwill
as an asset), which is sufficient to meet the obligations of Tenant under this
Lease (in the case of an assignment) or to meet the obligations of the subtenant
under the sublease (in the case of a sublease);
	any such assignment or sublease shall be subject to all of the terms and
provisions of this Lease, and such assignee or sublessee (i.e. any such
Affiliate), other than in the case of an Affiliate resulting from a merger or
consolidation as described in Section 16.7(iv) above, shall assume and any
sublessee shall agree to be bound by, in a written document reasonably
satisfactory to Landlord and delivered to Landlord upon or prior to the
effective date of such assignment or sublease, all the obligations of Tenant
under this Lease; and 
	Tenant and any guarantor shall remain fully liable for all obligations to be
performed by Tenant under this Lease, except in the case of an Affiliate
resulting from the acquisition of all or substantially all of the assets of
Tenant described in Section 16.7(iii) or from a merger or consolidation as
described in Section 16.7(iv) above.

	Subordination

	Lease Subordinate.  The rights of Tenant under this Lease and
Tenant's leasehold interest shall be subject and subordinate at all times to:
(i) all ground leases or underlying leases which may now exist or hereafter be
executed affecting the Building, the Lot, or any other portion of the Project,
and (ii) the lien of any mortgage or deed-of trust which may now or hereafter
exist for which the Adjacent Park (until the Lot is created), Building, the Lot,
ground leases or underlying leases, any other portion of the Project or
Landlord's interest or estate in any of said items is specified as security;
provided, however, the holder of such interest shall agree in writing to
recognize the Tenant's right of possession under this Lease and shall not
terminate this Lease so long as Tenant is not in default under this Lease beyond
the period provided for the cure of such default, if any. An agreement executed
by Tenant subordinating this Lease to any of the foregoing is herein referred to
as a "Subordination Agreement".  Except as expressly provided therein,
no Subordination Agreement shall limit lender's rights under the mortgage or
deed of trust or other loan documents relating thereto.

	Lease Superior at Lender's Request.
Notwithstanding the foregoing, Landlord or any ground lessor, mortgagee, or any
beneficiary shall have the right to require this Lease be superior to any such
ground leases or underlying leases or any such liens, mortgage or deed of trust.

	Attornment; Non-Disturbance.  If any
ground lease or underlying lease terminates for any reason or any mortgage or
deed of trust is foreclosed or a conveyance in lieu of foreclosure is made for
any reason, Tenant shall attorn to and become the Tenant of the successor in
interest to Landlord, provided such successor in interest does not disturb
Tenant's use, occupancy or quiet enjoyment of the Premises so long as Tenant is
not in material default of the terms and provisions of this Lease beyond the
period provided for the cure of such default, if any.

	Rights and Obligations of Successor.
The successor in interest to Landlord following foreclosure, sale or deed in
lieu thereof shall not be: (a) liable for any act or omission of any prior
lessor or with respect to events occurring prior to acquisition of ownership;
(b) subject to any offsets or defenses which Tenant might have against any prior
lessor; (c) bound by prepayment of more than one (1) month's Rent, except in
those instances when Tenant pays Rent quarterly in advance pursuant to Section
10 hereof, then not more than three months' Rent; or (d) liable to Tenant for
any Lease Collateral not actually received by such successor in interest to the
extent all or any portion of such Lease Collateral has not already been applied
by Landlord to cure a Tenant default or refunded to Tenant.  Subject to the
provisions of Section 6, Landlord shall be liable to Tenant for all or any
portion of any Lease Collateral not forfeited by, or refunded to Tenant, until
and unless Landlord transfers such Lease Collateral to the successor in
interest. 

	Execution of Subordination Agreement.
Tenant covenants and agrees to execute (and acknowledge if required by Landlord,
any lender or ground lessor) and deliver, within five (5) days of a demand or
request by Landlord, a Subordination Agreement in form and content as reasonably
requested by Landlord, ground lessor, mortgagee or beneficiary, and any
additional documents evidencing the priority or subordination of this Lease with
respect to any such ground leases or underlying leases or the lien of any such
mortgage or deed of trust.  Although a Subordination Agreement in a form
substantially similar to the form of Exhibit I shall be deemed
reasonable, Tenant shall be obligated to execute such other form of
Subordination Agreement as Landlord, ground lessor, mortgagee or beneficiary
shall reasonably request.  Landlord shall use commercially reasonable efforts to
cause a Subordination Agreement in substantially similar form to Exhibit
I to be executed by Landlord and Wells Fargo Bank Minnesota, N.A., as
trustee for the registered holders of First Union National Bank-Bank of America,
N.A. Commercial Mortgage Trust Commercial Mortgage Pass-Through Certificates,
Series 2001-C1 ("Existing Lender") on or before the sixtieth
(60th) day after the date of this Lease, unless on or before said
date the Lot has been created and the Existing Lender has released its lien on
the Lot.

	Right of Entry

Landlord and the Landlord Parties shall have the right to enter
the Premises at all reasonable times, upon reasonable prior notice, for purposes
of inspection, exhibition, posting of notices, investigation, replacements,
repair, maintenance and alteration. It is further agreed that Landlord shall
have the right to use any and all means Landlord deems necessary to enter the
Premises in an emergency. Landlord shall have the right to place "for rent" or
"for lease" or "for sale" signs on the outside of the Premises, the
Building and on the Lot. Tenant hereby waives any Claim from damages or for any
injury or inconvenience to or interference with Tenant's business, or any other
loss occasioned thereby except for any Claim arising out of a breach of this
Lease by Landlord or the sole active gross negligence or willful misconduct of
Landlord or the Landlord Parties.

	Estoppel Certificate

Tenant shall execute (and acknowledge if required by any lender or
ground lessor) and deliver to Landlord, within five (5) days after Landlord
provides such to Tenant, a statement in writing certifying that this Lease is
unmodified and in full force and effect (or, if modified, stating the nature of
such modification), the date to which the Rent and other charges are paid in
advance, if any, acknowledging that there are not, to Tenant's knowledge, any
uncured defaults on the part of Landlord hereunder or specifying such defaults
as are claimed, and such other matters as Landlord may reasonably require. Any
such statement may be conclusively relied upon by Landlord and any prospective
purchaser or encumbrancer of the Building or other portions of the Project.
Tenant's failure to deliver such statement within such time shall be conclusive
upon the Tenant that (a) this Lease is in full force and effect, without
modification except as may be represented by Landlord; (b) there are no uncured
defaults in Landlord's performance; and (c) not more than one month's Rent has
been paid in advance, except in those instances when Tenant pays Rent quarterly
in advance pursuant to Section 10 hereof, then not more than three months' Rent
has been paid in advance.

	Tenant's Default
The occurrence of any one or more of the following events shall, at Landlord's
option, constitute a material default by Tenant of the provisions of this
Lease:

	The abandonment of the Premises by Tenant or the
vacation of the Premises by Tenant which would cause any insurance policy to be
invalidated or otherwise lapse;
	The failure by Tenant to
make any payment of Rent, Additional Rent or any other payment required
hereunder as and when due, where such failure continues for three (3) calendar
days after Landlord gives Tenant written notice of default. If Landlord
gives Tenant a Notice to Pay Rent or Quit pursuant to applicable unlawful
detainer statutes, such Notice to Pay Rent or Quit shall also constitute the
notice required by this Section 20.2.
	The failure by Tenant to cause any portion of the
Lease Collateral to be delivered, renewed or replaced as required by Section 6.1
hereof;
	The failure by Tenant to timely deliver any estoppel
certificate, subordination agreement or evidence of insurance required by this
Lease where such failure continues for three (3) days after written notice of
such failure is given by Landlord to Tenant.
	A Transfer in violation of Section 16 of this
Lease.
	The failure by Tenant to observe, perform or comply
with any of the conditions, covenants or provisions of this Lease (except for
the failures described in Sections 20.1, 20.2, 20.3, 20.4, 20.5, 20.7, 20.8,
20.9, 20.10 and 20.11 and except for any failure, breach or default by Tenant
that is expressly stated in this Lease to be incurable) and such failure is not
cured within thirty (30) days of the date on which Landlord delivers written
notice of such failure to Tenant.  However, Tenant shall not be in default of
its obligations under this Section 20.6 if (i) such failure cannot reasonably be
cured within said thirty (30) day period, and (ii) Tenant promptly commences the
cure of such default and thereafter diligently proceeds with same to completion,
taking all actions necessary to cure such failure as soon as is reasonably
possible, but in no event shall the completion of such cure be later than ninety
(90) days after the date on which Landlord delivers to Tenant written notice of
such failure, unless Landlord, acting reasonably and in good faith, otherwise
expressly agrees in writing to a longer period of time based upon the
circumstances relating to such failure as well as the nature of the failure and
the nature of the actions necessary to cure such failure;
	The making of a general
assignment by Tenant for the benefit of creditors, the filing of a voluntary
petition by Tenant or the filing of an involuntary petition by any of Tenant's
creditors seeking the rehabilitation, liquidation, or reorganization of Tenant
under any law relating to bankruptcy, insolvency or other relief of debtors and,
in the case of an involuntary action, the failure to remove or discharge the
same within sixty (60) days of such filing;
	The appointment of a receiver or other custodian to
take possession of substantially all of Tenant's assets or this leasehold,
where such appointment is not rescinded within sixty (60) days after appointment
of the receiver, which thereupon shall be an incurable default;
	Tenant's insolvency or inability to pay Tenant's
debts or failure generally to pay Tenant's debts when due, which shall be an
incurable default;
	Any court entering a decree or order directing the
winding up or liquidation of Tenant or of substantially all of Tenant's
assets not entirely released within thirty (30) days after its initial
entry, which shall be an incurable default; and 
	The attachment, execution or other judicial seizure
of substantially all of Tenant's assets or this leasehold not entirely released
within thirty (30) days after its initial entry, which shall be an incurable
default.  

	Remedies for Tenant's
Default

	Landlord's Rights: In the event of Tenant's material default
under this Lease, Landlord may terminate Tenant's right to possession of the
Premises by any lawful means in which case upon delivery of written notice by
Landlord this Lease shall terminate on the date specified by Landlord in such
notice, and Tenant shall immediately surrender possession of the Premises to
Landlord. In addition, the Landlord shall have the immediate right of re-entry
whether or not this Lease is terminated, and if this right of re-entry is
exercised following abandonment of the Premises by Tenant, Landlord may consider
any of Tenant's Property left on the Premises to also have been abandoned. No
re-entry or taking possession of the Premises by Landlord pursuant to this
Section 21 shall be construed as an election to terminate this Lease unless a
written notice of such intention is given to Tenant. If Landlord relates the
Premises or any portion thereof, Tenant shall be liable immediately to Landlord
for all costs Landlord incurs in reletting the Premises or any part thereof,
including, without limitation, broker's commissions, expenses of cleaning,
redecorating, and further improving the Premises and other similar costs
(collectively, the "Reletting Costs"). To the fullest extent permitted by law,
any and all of the Reletting Costs shall be fully chargeable to Tenant and shall
not be prorated or otherwise amortized in relation to any new lease for the
Premises or any portion thereof. Reletting may be for a period shorter or longer
than the remaining term of this Lease. In no event shall Tenant be entitled to
any excess rent received by Landlord. No act by Landlord other than giving
written notice to Tenant shall terminate this Lease. Acts of maintenance,
efforts to relet the Premises or the appointment of a receiver on Landlord's
initiative to protect Landlord's interest under this Lease shall not constitute
a termination of Tenant's right to possession. So long as this Lease is not
terminated, Landlord shall have the right to remedy any default of Tenant, to
maintain or improve the Premises, to cause a receiver to be appointed to
administer the Premises and new or existing subleases and to add to the Rent
payable hereunder all of Landlord's reasonable costs in so doing, with interest
at the maximum rate permitted by law from the date of such expenditure.
	Damages
Recoverable: If Tenant breaches this Lease and abandons the Premises
before the end of the Term, or if Tenant's right to possession is terminated by
Landlord because of a breach or default under this Lease, then in either such
case, Landlord may recover from Tenant all damages suffered by Landlord as a
result of Tenant's failure to perform its obligations hereunder, including
without limitation, the following:

	 the unamortized cost of any Tenant Improvements constructed by or on behalf
of Tenant pursuant to Exhibit B hereto to the extent Landlord has paid
for such improvements.
	the unamortized portion of any broker's or leasing agent's commission
incurred with respect to the leasing of the Premises to Tenant for the balance
of the Term of the Lease remaining after the date on which Tenant is in default
of its obligations hereunder.
	all Reletting Costs.
	the worth at the time of the award (computed in accordance with Subparagraph
(a)(3) of Section 1951.2 of the California Civil Code) of the amount by which
the Rent then unpaid hereunder for the balance of the Lease Term exceeds the
amount of such loss of Rent for the same period which Tenant proves could be
reasonably avoided by Landlord, and, in such case, prior to the award Landlord
may relet the Premises for the purpose of mitigating damages suffered by
Landlord because of Tenant's failure to perform its obligations hereunder. Even
though Tenant has abandoned the Premises following such breach, this Lease shall
nevertheless continue in full force and effect for as long as Landlord does not
terminate Tenant's right of possession. The "worth at the time of the award"
within the meaning of Subparagraphs (a)(1) and (a)(2) of Section 1951.2 of the
California Civil Code shall be computed by allowing interest at the rate of ten
percent (10%) per annum.
	until Landlord elects to terminate Tenant's right of possession, Landlord
shall have the remedy described in Section 1951.4 of the California Civil Code
(Landlord may continue this Lease in effect after Tenant's breach and
abandonment and recover Rent as it becomes due, if Tenant has the right to
sublet or assign, subject only to reasonable limitations) and may enforce all
its rights and remedies under this Lease, including the right to recover the
Rent from Tenant as it becomes due hereunder. 

	Right of
Redemption  Except as herein expressly provided to the contrary,
Tenant waives redemption or relief from forfeiture under California Code of
Civil Procedure Sections 1174 and 1179 (or any successor or substitute, or
similar statute), or under any other present or future law, in the event Tenant
is evicted or Landlord takes possession of the Premises by reason of any default
of Tenant hereunder. Tenant hereby waives for Tenant and for all those claiming
under Tenant all rights now or hereafter existing to redeem by order or judgment
of any court or by any legal process or writ, Tenant's right of occupancy of the
Premises after any termination of this Lease for non-payment of Base Rent or any
other sum of money due hereunder.  Notwithstanding the foregoing provisions of
this Section 21.3, Cell Genesys, Inc. (and, if Cell Genesys, Inc. has not
exercised such right, any Affiliate receiving an assignment of the Lease in
accordance with Section 16 of this Lease, but not anyone claiming by and under
Cell Genesys, Inc. or an Affiliate), shall have, on one occasion
during the Term of this Lease, the right to seek relief from forfeiture under
California Code of Civil Procedure (CCP) Sections 1174 and 1179 (or any
successor substitute, or similar statute) provided that, in
addition to the requirements of CCP Sections 1174 and  1179, Cell Genesys, Inc.
provides to the Court reasonable assurances of future timely performance of all
of its obligations under the Lease.

	Rights and Remedies Cumulative: The
foregoing rights and remedies of Landlord are not exclusive; they are cumulative
in addition to any rights and remedies now or hereafter existing at law, in
equity by statute or otherwise, or to any equitable remedies Landlord may have,
and to any remedies Landlord may have under bankruptcy laws or laws affecting
creditors' rights generally. In addition to all remedies set forth above, if
Tenant materially defaults under this Lease, all options granted to Tenant
hereunder shall automatically terminate, unless otherwise expressly agreed to in
writing by Landlord.
	Holding Over

If Tenant holds over after the expiration of the Lease Term
hereof, with or without the express or implied consent of Landlord, such tenancy
shall be from month-to-month only, and shall not constitute a renewal hereof or
an extension for any further term, and in such case Base Rent shall be payable
at a monthly rate equal to two hundred percent (200%) of the greater of (i) the
Base Rent applicable during the last rental period of the Lease Term under this
Lease or (ii) the fair market rental rate for the Premises as of the
commencement of such holdover period. Such month-to-month tenancy shall be
subject to every other term, covenant and agreement contained herein. Landlord
hereby expressly reserves the right to require Tenant to surrender possession of
the Premises to Landlord as provided in this Lease upon the expiration or other
termination of this Lease. The provisions of this Section 22 shall not be deemed
to limit or constitute a waiver of any other rights or remedies of Landlord
provided herein or at law. If Tenant fails to surrender the Premises upon the
termination or expiration of this Lease, in addition to any other liabilities to
Landlord accruing therefrom, Tenant shall protect, defend, indemnify and hold
Landlord harmless from all Claims resulting from such failure, including but not
limited to, any Claims made by any succeeding tenant founded upon such failure
to surrender, and any lost profits to Landlord resulting therefrom.

	Landlord's Default

Landlord shall not be considered in default of this Lease unless
Landlord fails within a reasonable time to perform an obligation required to be
performed by Landlord hereunder. For purposes hereof, a reasonable time shall
not be less than thirty (30) days after receipt by Landlord of written notice
specifying the nature of the obligation Landlord has not performed; provided,
however, that if the nature of Landlord's obligation is such that more than
thirty (30) days, after receipt of written notice, is reasonably necessary for
its performance, then Landlord shall not be in default of this Lease if
performance of such obligation is commenced within such thirty (30) day period
and thereafter diligently pursued to completion.

	Parking

Tenant shall have the right to use one hundred five (105) non-
designated and non-exclusive parking spaces located on the Lot.  Tenant's
parking rights shall be exercised in accordance with all Laws and subject to
such reasonable parking rules and regulations as Landlord may from time to time
promulgate. Landlord represents and warrants that (i) the Lot shall contain no
less than the greater of (a) the number of parking spaces required by the City
of Hayward at the time the building permit for the Building shell portion of
Landlord's Work is issued or (b) the total number of spaces specified in the
Basic Lease Information plus the number of parking spaces on the Lot granted to
occupants of the Adjacent Park, and (ii) Landlord shall not permit tenants of
the Adjacent Park to utilize spaces on the Lot if such use would result in fewer
parking spaces being allocated to the Building than are indicated in the Basic
Lease Information.  Within a reasonable period of time following written notice
from Tenant to Landlord that persons other than Tenant and its employees,
subtenants and invitees are utilizing spaces on the Lot that have been allocated
to Tenant and which Tenant is authorized and intends to utilize, Landlord shall
make commercially reasonable efforts, at Landlord's expense, to eliminate the
unpermitted use.  In no event shall Tenant or any of Tenant's Representatives
park or permit any parking of vehicles overnight.  There shall be no vehicle
parking or truck activity within the parking area on the easterly side of the
Building from 7:00 p.m. to 7:00 a.m.

	Transfer of Landlord's
Interest

If there is any sale or other transfer of the Premises or any
other portion of the Project by Landlord or any of Landlord's interest therein,
Landlord shall automatically be entirely released from all liability under this
Lease, and Tenant agrees to look solely to such transferee for the performance
of Landlord's obligations hereunder after the date of such transfer. A ground
lease or similar long term lease by Landlord of the Premises or Lot, shall be
deemed a sale within the meaning of this Section 25.  Tenant agrees to attorn to
such new owner provided such new owner does not disturb Tenant's use, occupancy
or quiet enjoyment of the Premises so long as Tenant is not in material default
of any of the provisions of this Lease.

	Waiver

No delay or omission in the exercise of any right or remedy of
either party on any default by the other party shall impair such a right or
remedy or be construed as a waiver. The subsequent acceptance of Rent by
Landlord after default by Tenant of this Lease shall not be deemed a waiver of
such default, other than a waiver of timely payment for the particular Rent
payment involved, and shall not prevent Landlord from maintaining an unlawful
detainer or other action based on such breach. No payment by Tenant or receipt
by Landlord of a lesser amount than the monthly Rent and other sums due
hereunder shall be deemed to be other than on account of the earliest Rent or
other sums due, nor shall any endorsement or statement on any check or
accompanying any check or payment be deemed an accord and satisfaction; and
Landlord may accept such check or payment without prejudice to Landlord's right
to recover the balance of such Rent or other sum or pursue any other remedy
provided in this Lease. No failure, partial exercise or delay on the part of the
Landlord in exercising any right, power or privilege hereunder shall operate as
a waiver thereof.

	Casualty Damage 
 

	Estimate of Time to Restore. 

	Following damage or
destruction to the Property, within the sixty (60) day period ("Restoration
Estimate Period") following Tenant's notice to Landlord of the occurrence
of the loss ("Tenant's Loss Notice"), Landlord's architect shall give
to Landlord and Tenant a reasonable estimate ("Landlord Architect's
Estimate") of the time required to restore (i) the Landlord's Work and (ii)
the Required Surrender Improvements, excluding from such time estimate
the time required to replace any specialty improvements installed in connection
with Tenant's research and development activities in the Premises, including
without limitation, laboratory equipment and ancillary building service
equipment required because of such research and development activities. If
Landlord gives the Landlord Architect's Estimate to Tenant within the
Restoration Estimate Period, then the Landlord Architect's Estimate shall be the
"Architect's Certificate", and Section 27.1.2 shall be of no force or
effect.
	During the Restoration Estimate Period, Tenant may
select an architect to prepare a reasonable estimate of the time required to
restore the Insured Premises ("Tenant Architect's Estimate"), and, if
(i) the Landlord fails to give Tenant the Landlord Architect's Estimate within
the Restoration Estimate Period and (ii) Tenant gives Landlord the
Tenant's Architect's Estimate within the Restoration Estimate Period, then the
Tenant Architect's Estimate shall be the "Architect's
Certificate".  
	If within the Restoration Estimate Period (i)Landlord's Architect fails to
give the Landlord Architect's Estimate and (ii) the Tenant's Architect fails to
give the Tenant Architect's Estimate, then it shall be deemed that the Landlord
Architect's Estimate was given on such 60th day and shall be deemed
to be the "Architect's Estimate", and it shall be deemed that the
Landlord's Work and Required Surrender Improvements, subject to the exclusions
described in Section 27.1.1 above, can be restored within 365 days after
issuance of building permits for such work. 

	Definitions and Termination Rights.  As
used herein:

	"Tenant Insured Loss" shall mean damage or
destruction to the Insured Premises (as defined in Section 14.1.2) that (i) is
actually covered by the Property Insurance on the Insured Premises to be
obtained by Tenant pursuant to Section 14.1.2 or, (ii) provided Landlord has not
exercised its rights under Section 27.7, is required to be covered by Property
Insurance to be obtained by Tenant pursuant to Section 14.1.2, but is not so
covered by such insurance.

	"Landlord Insured Loss" shall
mean damage or destruction to the Insured Premises (i) that is actually covered
by the Property Insurance or other insurance obtained by Landlord in accordance
with Section 27.7, and (ii) either:

	all of the proceeds of such Property Insurance carried or to be carried by
Landlord are actually disbursed by the insurer for use by Tenant or Landlord in
restoration of the Insured Premises, or 
	if less than all of the proceeds of such Property
Insurance are actually disbursed by the insurer for use by Tenant or Landlord in
restoration of the Insured Premises or if the Landlord's lender otherwise
prevents the use of the proceeds of such Property Insurance for the restoration
of the Insured Premises (the amount of proceeds not actually disbursed for
restoration being hereinafter referred to as "Insurance Proceeds Reduction
Amount"), and then either:

	not later than ninety (90) days following the date
the Tenant's Loss Notice is given, Landlord elects in writing to deposit an
amount equal to the Insurance Proceeds Reduction Amount into an escrow
account; or
	not later than ninety (90) days following the date the Tenant's Loss
Notice is given, Landlord elects in writing to provide other reasonable
assurance that the Insurance Proceeds Reduction Amount will be made available
for restoration of the Insured Premises.

	"Uninsured Loss" shall mean any damage or destruction
to the Insured Premises other than a Tenant Insured Loss or a
Landlord Insured Loss.
	The term "Tenant's
Casualty Loss Termination Right" shall mean the right of Tenant to
terminate this Lease if:

	there is an Uninsured Loss, a Tenant Insured Loss, or a Landlord Insured
Loss and the Architect's Estimate provides that the time required to fully
restore the Landlord's Work and Required Surrender Improvements, subject to the
exclusions provided for in Section 27.1.1 above, is reasonably estimated
pursuant to Section 27.1 to exceed 365 days after building permits are
issued, or
	the Insured Premises are damaged or destroyed by an Uninsured Loss, a
Tenant Insured Loss or a Landlord Insured Loss at anytime during the last twelve
months of the Lease Term, as the same may be extended from time to time, or

	there is an Uninsured Loss and Landlord does not elect,
pursuant to and in accordance with Section 27.4.1 to restore Landlord's
Work.

	The term "Landlord's Casualty Loss
Termination Right" shall mean the right of Landlord to terminate this
Lease if (i) there is an Uninsured Loss, (ii) Landlord had not at the time of
such loss elected to carry Property Insurance on the Insured Premises pursuant
to Section 27.7, and (iii) Tenant does not elect, pursuant to Section
27.4.2 to restore Landlord's Work and the Required Surrender
Improvements.

	Insured Loss .  

	If (i) there is a  Tenant
Insured Loss or a Landlord Insured Loss and (ii)Tenant exercises Tenant's
Casualty Loss Termination Right, then (a) Tenant shall assign to Landlord and
Landlord's lender, as their interests may appear, all of its right, title and
interest in the Property Insurance covering the Insured Premises obtained by
Tenant pursuant to Section 14.1.2 or otherwise, and (b) if Tenant has breached
its obligation to obtain Property Insurance pursuant to Section 14.1.2, then
Tenant shall cause to be paid to Landlord the full amount of the proceeds that
would have been made available by the insurer for such loss as if Tenant had in
fact carried the insurance required of Tenant pursuant to Section
14.1.2.
	Subject to the other provisions of this Section 27,
if at any time during the term of this Lease (i) there is a Tenant Insured Loss
or Landlord Insured Loss and (ii) neither Landlord nor Tenant exercises their
respective Landlord's Casualty Loss Termination Right or Tenant's Casualty Loss
Termination Right in accordance with this Section 27, then (a) this Lease shall
continue in full force and effect, (b) Tenant shall restore the Insured Premises
and, if Tenant so elects, such other Tenant Improvements and other Tenant's
Property as Tenant may elect to restore as soon as reasonably possible, and (c)
subject to any contrary provision of any Subordination Agreement, all of the
proceeds of the Property Insurance covering the Insured Premises (and any
additional sum that Landlord may elect to contribute to the restoration pursuant
to Section 27.2.2.2) shall be disbursed for use by Tenant for such restoration
of the Insured Premises.  If any lender, after having consented to the use of
insurance proceeds for restoration, should cut off the availability of such
proceeds and such proceeds are not replaced by Landlord, then in addition to its
other rights and remedies, Tenant shall have the right to cease restoration of
the Insured Premises.
	At any time when Tenant is to undertake the restoration of the Insured
Premises in accordance with this Lease, such restoration planning and work shall
be performed by the Tenant in accordance with the provisions of Section 12 above
and the provisions of the Work Letter relating to work which was to be performed
by Tenant under such Work Letter. 
	If Landlord carries the Property Insurance pursuant to Section 27.7 , then,
subject to any contrary provisions of any Subordination Agreement executed by
Landlord and Tenant, in the event of a Landlord Insured Loss, the proceeds of
the Property Insurance for the Insured Premises shall be disbursed by the
insurer for use as the restoration work progresses in accordance with procedures
(comparable to construction loan disbursement procedures) reasonably acceptable
to Tenant, Landlord and any Landlord's lender named as an additional insured or
loss payee with respect to such Property Insurance covering the Insured
Premises.  Any proceeds of insurance attributable to any Tenant's Property,
other than the Required Surrender Improvements, shall be disbursed as the
insurer and Tenant shall agree.
	If Landlord has elected to provide any Insurance Proceeds Reduction Amount
pursuant to Section 27.2.2.2, then, as the restoration work progresses, such
Insurance Proceeds Reduction Amount shall be disbursed in accordance with
procedures (comparable to construction loan disbursement procedures) reasonably
acceptable to Landlord, Tenant and Landlord's lender. If Landlord fails to
provide the Proceeds Reduction Amount, in addition to its other rights and
remedies, Tenant shall have the right to halt restoration of the Insured
Premises.

	Uninsured Loss.  

	If (i) there is an Uninsured Loss, (ii) the Architect's
Estimate is given and provides that Landlord's Work and the Required Surrender
Improvements (subject to the exclusions in Section 27.1 above) require 365 days
or less to restore after the issuance of building permits and (iii)
Tenant does not elect to restore the Insured Premises pursuant to Section
27.4.2, then Landlord shall have the right, but not the obligation, to elect to
restore Landlord's Work (as defined in the Work Letter Agreement) by delivery of
written notice to Tenant not earlier than one hundred twenty-one (121) days and
not later than one hundred thirty-five (135) days following the date Tenant's
Loss Notice is given and, if Landlord elects to restore Landlord's Work, (a) the
Lease shall continue in full force and effect, and Landlord shall diligently
undertake such restoration of Landlord's Work at its sole cost and without
contribution from Tenant and shall diligently pursue such undertaking to
completion, (b) Tenant shall restore the Required Surrender Improvements,
provided, however, that Tenant shall not be obligated to expend more for such
restoration of the Required Surrender Improvements than the proceeds of any
Property Insurance with respect to the Required Surrender Improvements that are
paid to Tenant or would have been paid to Tenant had Tenant performed its
obligations under Section 14.1.2, and (c) Tenant shall have the right, but not
the obligation, to restore any other portion of Tenant's Property at Tenant's
sole cost and expense without reimbursement from Landlord. 
	If there is an Uninsured Loss, Tenant shall have the
right, but not the obligation, to elect to restore the Landlord's Work (as
defined in the Work Letter Agreement) by giving written notice of such election
to Landlord not earlier than ninety-one (91) days and not later than one hundred
twenty (120) days after Tenant's Loss Notice is given, in which event (a) the
Lease shall continue in full force and effect, and Tenant shall diligently
undertake and complete the restoration of the Landlord's Work at Tenant's sole
cost and expense without contribution from Landlord, (b) Tenant shall restore
the Required Surrender Improvements, and (c) Tenant shall have the right, but
not the obligation, to restore any other portion of Tenant's Property at
Tenant's sole cost and expense without reimbursement from
Landlord.

	Exercise of Termination
Rights.

	If Tenant is not required pursuant to Section
27.3.2 to restore and does not elect to restore the Insured Premises in
accordance with Section 27.4.2, then Landlord may exercise the Landlord's
Casualty Loss Termination Right by giving Tenant written notice of Landlord's
election to terminate the Lease not earlier than the first to occur of (a) the
date Tenant gives Landlord notice of its election not to restore the Insured
Premises pursuant to Section 27.4.2 or (b) the one hundred twenty-first
(121st) day following the date Tenant's Loss Notice is given, and not
later than one hundred thirty five (135) days following the date Tenant's Loss
Notice is given.
	If Tenant is not required to restore and Landlord
does not elect to restore in accordance with this Section 27, then Tenant may
exercise the Tenant's Casualty Loss Termination Right by giving Landlord written
notice of Tenant's election to terminate the Lease no earlier than one hundred
thirty-six (136) days and no later than one hundred fifty (150) days after the
Tenant's Loss Notice is given, (ii) paying to Landlord, upon Landlord's demand,
any amounts due pursuant to Section 27.3.1; and (iii) upon request by Landlord,
executing such documents as may reasonably be required to transfer to Landlord
Tenant's rights in Property Insurance attributable to the Insured Premises.
Within ninety (90) days after the giving of such notice by Tenant, Tenant shall
remove all of Tenant's Property (other than the Required Surrender Improvements
and the Optional Surrender Improvements that Tenant decides not to remove) and
shall return possession of the Premises to the Landlord as required by Section
12.2 and Section 29, and thereupon Landlord shall return to Tenant (i) any
prepaid Rent and (ii) subject to all the terms and provisions of Section 6
above, the Lease Collateral (or so much thereof as has not been applied in
accordance with this Lease).  Tenant may exercise Tenant's Casualty Loss
Termination Right pursuant to Section 27.2.4 within one hundred fifty (150) days
after Tenant's Loss Notice is given.

	Rent Abatement.
Following any Landlord Insured Loss, Tenant Insured Loss or Uninsured Loss,
the Rent payable hereunder by Tenant shall be abated, such abatement being
limited to the extent (a) the Premises are rendered unusable and unfit for
occupancy due to any damage or destruction and (b) Tenant is not using or
otherwise occupying same for the conduct of its business; provided, however that
if Tenant is undertaking the restoration, the maximum amount of such abatement
shall be limited to the time that the Premises could be made reasonably useable
by Tenant if restoration is pursued by Tenant with reasonable diligence.
Notwithstanding any provision of this Lease to the contrary, such abatement
shall be limited to the proceeds of rental loss insurance carried or required to
be carried by Landlord pursuant to the provisions of Section 14.6.
	Lender
Requirements.  

	Notwithstanding any provision of Section 27 to the contrary, in the event
any of Landlord's lender(s) having a lien on the Premises so require, Landlord
shall have the right to carry the Property Insurance on the Insured Premises
required or permitted of Tenant pursuant to Section 14.1.2 hereof and any other
type of insurance that any such lender may require, and Landlord shall treat the
expenses thereof as Operating Expenses, subject, however, to the provisions of
Section 8.2.3. Landlord shall deliver prior written notice to Tenant of
Landlord's election to carry said Property Insurance.  If Landlord delivers such
notice to Tenant, Landlord shall carry the Property Insurance, and Tenant shall
be relieved of its obligation to carry such Property Insurance, unless and until
Landlord shall provide Tenant with at least thirty (30) days notice of
rescission of its election under this Section 27.7, in which event this Section
27.5 shall not apply unless and until Landlord provides Tenant with another
notice of its election.
	If Tenant does not exercise Tenant's Casualty Loss Termination Right
pursuant to the provisions of Section 27.5, then with respect to any loss which
is not a Tenant Insured Loss and which is covered by or is required to be
covered by the Property Insurance that Landlord carries or is required to carry
pursuant to this Section 27.7, the following shall apply:

	Landlord shall use its reasonable best efforts to obtain, within ninety (90)
days following such loss, the written agreement of the Landlord's lender that
any proceeds available from Property Insurance carried by Landlord with respect
to the Insured Premises (or the amount that Landlord is liable to pay due to any
failure by Landlord to carry such Property Insurance) may be disbursed for use
by Tenant for the restoration of the Insured Premises in accordance with the
foregoing provisions of this Section 27, 
	If the loss is a Landlord Insured Loss, Tenant shall pay to Landlord the
greater of (i) the deductible portion of the Property Insurance carried by
Landlord with respect to any such loss (other than earthquake (DIC) insurance)
up to $25,000 and as to earthquake (DIC) insurance, up to 15% of the replacement
value of the Insured Premises, or (ii) such higher deductible amount as to which
Landlord and Tenant have agreed in writing.

	Waiver:  Landlord shall not be liable
for any inconvenience or annoyance to Tenant, injury to the business of Tenant,
loss of use of any part of the Premises by Tenant or loss of Tenant's Property,
resulting in any way from such damage, destruction or the repair thereof, except
that, to the extent of proceeds of loss of rents insurance coverage carried by
Landlord or required by this Lease to be carried by Landlord, Landlord shall
allow Tenant a fair diminution of Rent during the time and to the extent the
Premises are actually unusable and unfit for occupancy and Tenant is not using
or otherwise occupying same for the conduct of its business as specifically
provided above in this Section 27.  Except as herein expressly provided to the
contrary, Landlord and Tenant hereby waive all rights to terminate this Lease,
and Tenant hereby waives any right to offset any amounts against Rent pursuant
to rights accorded Tenant by any law currently existing or hereafter enacted,
including but not limited to, all rights pursuant to the provisions of Sections
1932(2.), 1933(4.), 1941 and 1942 of the California Civil Code or any similar
statute or common law, as the same may be amended or supplemented from time to
time.

	Survival. The rights and obligations of
Landlord and Tenant under this Section 27 shall survive the termination of this
Lease.  
	Restoration of Common Area
Improvements.  To the extent of insurance proceeds of Property
Insurance Landlord is required to carry pursuant to Section 14.6 (or, if
Landlord should fail to carry such insurance, to the extent of proceeds that
would have been available but for Landlord's failure), Landlord shall promptly
and diligently restore any damaged improvements to the Common Areas
substantially to the condition existing prior to such damage.
	Calendar of Restoration
Events.  Set forth below is a calendar of important dates in the
event there is damage or destruction to the Insured Premises.  In the event of
any conflict between the provisions of this Section 27.11 and any other
provision of this Section 27, such other provision shall control.

	
EVENT
	
DATE

	
Last day for Landlord's architect to provide Architect's Estimate
	
60 days after Tenant's Loss Notice 

	
First day for Landlord to elect to provide Insurance Proceeds Reduction
Amount pursuant to Section 27.2.2.2
	
Date of Tenant's Loss Notice

	
Last day for Landlord to elect to provide Insurance Proceeds Reduction Amount
pursuant to Section 27.2.2.2
	
90 days after Tenant's Loss Notice

	
First day for Tenant to elect to restore pursuant to Section 27.4.2 
	
91 days after Tenant's Loss Notice

	
Last day for Tenant to elect to restore the Landlord's Work pursuant to
Section 27.4.2 
	
120 days after Tenant's Loss Notice

	
First day for Landlord to elect to restore pursuant to Section 27.4.1 or to
exercise a Landlord's Casualty Loss Termination Right pursuant to Section 27.5.1

	
121 days after Tenant's Loss Notice

	
Last day for Landlord to elect to restore pursuant to Section 27.4.1 or to
exercise a Landlord's Casualty Loss Termination Right pursuant to Section
27.5.1
	
135 days after Tenant's Loss Notice

	
First day for Tenant to elect to exercise a Tenant's Casualty Loss
Termination Right pursuant to Section 27.5.2
	
136 days after Tenant's Loss Notice

	
Last day for Tenant to elect to exercise a Tenant's Casualty Loss Termination
Right pursuant to Section 27.5.2
	
150 days after Tenant's Loss Notice

	Condemnation

	Definitions.  

	"Partial Taking" shall mean a Taking by power of eminent domain a
portion of the Premises or the Common Areas and following such taking the
remaining portion of the Premises and the Common Areas available for the
Tenant's use are reasonably suitable for the continued conduct of the Tenant's
business therein.
	"Total Taking" shall mean a Taking by power of eminent domain of
all of the Premises.
	"Substantial Taking" shall mean a Taking that is not a Partial
Taking or a Total Taking.
	"Taking" shall mean the exercise of the power of eminent domain
with respect to the property, inverse condemnation or sale in lieu thereof for
any public or quasi-public use or purpose. 
	"Temporary Taking" shall mean a Taking of all or a portion of the
Premises for less than the remainder of the Term.

	Partial Taking.  If there is a Partial
Taking, the Lease shall continue in effect as to the portion of the Premises
remaining, the Lease shall terminate as to the portion of the Premises taken,
and the Rent shall be equitably adjusted.

	Total Taking.  If there is a Total
Taking, the Lease shall terminate on the earlier of (i) the date title to the
Premises vests in the condemnor (ii) the date the condemnor is authorized to
take possession of the Premises as stated in an order for possession.

	Substantial Taking.  If there is a
Substantial Taking, then Tenant may elect to terminate this Lease on the earlier
of (i) the date title to the Premises vests in the condemnor (ii) the date the
condemnor is authorized to take possession of the Premises as stated in an order
for possession.

	Temporary Taking.  If there is a
Temporary Taking, the Lease shall remain in full force and effect, there shall
be no reduction in the Rent, and Tenant shall receive the award for such
Temporary Taking.

	Award.   Tenant shall not because of any
Taking assert any claim against Landlord or the condemning authority for any
compensation because of the condemnation of the Premises or the Common Area, and
Landlord shall be entitled to receive the entire amount of any award for the
Taking of the Premises or the Common Area without deduction for any estate of
interest or other interest of Tenant; provided, however, the foregoing
provisions shall not preclude Tenant, at Tenant's sole cost and expense, from
obtaining any separate award to Tenant for the Taking or for loss of or damage
to Tenant's Property or for damages for cessation or interruption of Tenant's
business provided such award is separate from Landlord's award and provided
further such separate award does not diminish nor otherwise impair the award
otherwise payable to Landlord for the Taking of the Premises or the Common Area.
In addition to the foregoing, Tenant shall be entitled to seek compensation for
the relocation costs recoverable by Tenant pursuant to the provisions of
California Government Code Section 7262.  If this Lease is not terminated as a
consequence of a taking, Landlord shall, if necessary, promptly proceed to
restore Landlord's Work, to substantially its same condition prior to such
condemnation, allowing for the reasonable effects of such condemnation, and a
proportionate reduction in Rent shall be made to Tenant, as solely reasonably
determined by Landlord, for the Rent corresponding to the time during which, and
to the part of the Premises of which, Tenant is deprived on account of such
Taking of the Premises and restoration of Landlord's Work.  Landlord shall not
be required to spend funds for restoration in excess of the amount received by
Landlord as compensation awarded.  Tenant waives the right to assert the
provisions of California Code of Civil Procedure section 1265.130 or any similar
or successor provision.
	Environmental Matters/
Hazardous Materials

	Hazardous Materials Disclosure Certificate.  Prior to executing
this Lease, Tenant shall have delivered to Landlord Tenant's executed initial
Hazardous Materials Disclosure Certificate (the "Initial HazMat Certificate"), a
copy of which is attached hereto as Exhibit E. Tenant covenants,
represents and warrants to Landlord that the information in the Initial HazMat
Certificate is true and correct and accurately describes in all material
respects the use(s) of Hazardous Materials which will initially be made and/or
used on the Premises by Tenant. Tenant shall, commencing with the date which is
one year from the Commencement Date and continuing every year thereafter,
deliver to Landlord, an executed Hazardous Materials Disclosure Certificate
("the "HazMat Certificate") describing Tenant's then present use of Hazardous
Materials on the Premises, and any other reasonably necessary documents as
requested by Landlord concerning such use of Hazardous Materials. The HazMat
Certificates required hereunder shall be in substantially the form attached
hereto as Exhibit E.

	Definitions.

	Hazardous Materials.  As used in this Lease, the term Hazardous
Materials shall mean and include (a) any hazardous or toxic wastes, materials or
substances, and other pollutants or contaminants, which are or become regulated
by any Environmental Laws (as defined in Section 29.3 below); (b) petroleum,
petroleum by products, gasoline, diesel fuel, crude oil or any fraction thereof;
(c) asbestos and asbestos containing material, in any form, whether friable or
non-friable; (d) polychlorinated biphenyls; (e) radioactive materials; (f) lead
and lead-containing materials; (g) medical or bio-hazardous waste; (h) any other
material, waste or substance displaying toxic, reactive, ignitable or corrosive
characteristics, as all such terms are used in their broadest sense, and are
defined or become defined by any Environmental Law; or (i) any material which
causes or threatens to cause a nuisance upon or waste to any portion of the
Project or any surrounding property or that poses or threatens to pose a hazard
to the health and safety of persons on the Premises, any other portion of the
Project or any surrounding property. For purposes of this Lease, the term
"Hazardous Materials" shall not include nominal amounts of ordinary household
cleaners, office supplies and janitorial supplies which are not actionable under
any Environmental Laws. 

	Environmental Laws.  As used in this
Lease the term "Environmental Laws" shall mean state and federal
environmental, health and/or safety-related laws, statutes, orders, standards,
courts' decisions, ordinances, rules and regulations (as interpreted by judicial
and administrative decisions), decrees, directives, guidelines, permits or
permit conditions, currently existing and as amended, enacted, issued or adopted
in the future which are or become applicable to Tenant or all or any portion of
the Premises.

	Tenant's Hazardous Materials.  As used
in this Lease the term "Tenant's Hazardous Materials" shall mean any
Hazardous Material introduced to the Project or the Adjacent Park by Tenant or
Tenant's Representatives.
	Midnight Dumper.
As used in this Lease the term "Midnight Dumper" shall mean any person
or entity (other than Tenant, any other occupant of the Adjacent Park, and their
respective agents, officers, directors, members, employees, and contractors)
whose identity is unknown that, during the Lease Term, deposits upon the Project
any Hazardous Material(s).
	Prohibition; Environmental
Laws:  Tenant shall not be entitled to use or store any Hazardous
Materials on, in, or about any portion of the Premises, the Project or the
Adjacent Park without, in each instance satisfying the following conditions:
(i) Tenant shall provide a HazMat Certificate for such material to Landlord
prior to bringing such material onto the Lot; (2) Tenant shall be permitted to
use and/or store only those Hazardous Materials that are necessary for Tenant's
business and to the extent disclosed in the HazMat Certificate; (3) Any such
usage and storage may only be to the extent of the quantities of Hazardous
Materials as specified in the then applicable HazMat Certificate and in
compliance with any and all local applicable Law; (4) In all events such usage
and storage must at all times be in full compliance with Environmental Laws; (5)
Any changes to the type and/or quantities of Hazardous Materials specified in
the most recent HazMat Certificate may be implemented only after complying with
the foregoing conditions; and (6) Tenant shall not be entitled nor permitted to
install any tanks under, on or about the Project or the Adjacent Park for the
storage of Hazardous Materials without the express written consent of Landlord,
which may be given or withheld in Landlord's sole but reasonable discretion.
Landlord shall have the right at all times during the Term of this Lease to (i)
inspect the Premises, (ii) conduct tests and investigations to determine whether
Tenant is in compliance with the provisions of this Section 29 or to determine
if Hazardous Materials are present in, on or about the Project or the Adjacent
Park, and (iii) request lists of all Hazardous Materials used, stored or
otherwise placed by Tenant or Tenant's Representatives on, under or about any
portion of the Project or the Adjacent Park. The cost of all such inspections,
tests and investigations shall be borne by Tenant, if Landlord reasonably
determines that Tenant or any of Tenant's Representatives are directly or
indirectly responsible in any manner for any contamination revealed by such
inspections, tests and investigations. The aforementioned rights granted herein
to Landlord and its representatives shall not create (a) a duty on Landlord's
part to inspect, test, investigate, monitor or otherwise observe the Premises or
the activities of Tenant and Tenant's Representatives with respect to Hazardous
Materials, including without limitation, Tenant's operation, use and any
remediation related thereto, or (b) liability on the part of Landlord or
Landlord Parties for Tenant's use, storage, disposal or remediation of Tenant's
Hazardous Materials, it being understood that Tenant shall be solely responsible
for all liability in connection therewith.
	Tenant's Environmental
Obligations: Tenant shall give to Landlord immediate verbal and
follow-up written notice of any spills, releases, discharges, disposals,
emissions, migrations, removals or transportation of Hazardous Materials on,
under or about any portion of the Project or Adjacent Park; provided that Tenant
has actual, implied or constructive knowledge of such event(s). Tenant, at its
sole cost and expense, covenants and warrants to promptly investigate, clean up,
remove, restore and otherwise remediate (including, without limitation,
preparation of any feasibility studies or reports and the performance of any and
all closures) any spill, release, discharge, disposal or emission (including the
migration thereof) of Tenant's Hazardous Materials such that (i) the affected
portions of the Premises, Project and the Adjacent Park are returned to a
condition sufficient to comply with applicable Environmental Laws and to the
other standards specified in this Section 29.4 and (ii) closure letters with
respect thereto have been issued by the governmental agency having oversight
responsibility for the remediation of any spill or release of Hazardous
Materials, subject, however to the provisions of Section 12.2.2.  Any such
investigation, clean up, removal, restoration and other remediation to be
undertaken by or at the direction of Tenant shall only be performed after Tenant
has obtained Landlord's prior written consent to a remediation work plan
("Remediation Plan"), which consent shall not be unreasonably withheld
so long as the Remediation Plan is designed to remediate such spill, release,
discharge, disposal or emission within a reasonable time frame (as reasonably
determined by Landlord) so that, upon completion of the Remediation Plan
approved by Landlord, which approval shall not be unreasonably withheld or
delayed, the Project will be in compliance with all applicable Environmental
Laws relating to Hazardous Materials that the Remediation Plan addresses.
Notwithstanding the foregoing, Tenant shall be entitled to respond immediately
to an emergency and to comply with any Law requiring action before the
Landlord's consent could reasonably be obtained, without first obtaining
Landlord's prior written consent. Tenant, at its sole cost and expense, shall
conduct and perform, or cause to be conducted and performed, all closures as
required by any Environmental Laws or any agencies or other governmental
authorities having jurisdiction thereof and arising out of or caused by any
Tenant's Hazardous Materials. If Tenant fails to so promptly investigate, clean
up, remove, restore, provide closure or otherwise so remediate, Landlord may,
but without obligation to do so, take any and all steps necessary to rectify the
same and Tenant shall promptly reimburse Landlord, upon demand, for all costs
and expenses to Landlord of performing investigation, clean up, removal,
restoration, closure and remediation work. All such work undertaken by Tenant,
as required herein, shall be performed in such a manner so as to enable Landlord
to make use of the Project and the Adjacent Park for the use thereof permitted
under the City of Hayward Zoning Code then applicable thereto, including those
uses that are permitted with a conditional use permit, after the satisfactory
completion of such work.
	Environmental
Indemnity: In addition to Tenant's obligations as set forth
hereinabove, Tenant agrees to, and shall, protect, indemnify, defend (with
counsel acceptable to Landlord) and hold Landlord and the other Landlord
Indemnitees harmless from and against any and all Claims (including, without
limitation, diminution in value of any portion of the Project or the Adjacent
Park, damages for the loss of or restriction on the use of rentable or usable
space, and from any adverse impact of Landlord's marketing of any space within
the Project or Adjacent Park) arising at any time during or after the Term of
this Lease to the extent directly or indirectly, arising out of or caused by any
Tenant's Hazardous Material.  Neither the written consent of Landlord to the
presence, use or storage of Hazardous Materials in, on, under or about any
portion of the Project or the Adjacent Park nor the strict compliance by Tenant
with all Environmental Laws shall excuse Tenant from its obligations of
indemnification pursuant hereto. Tenant shall not be relieved of its
indemnification obligations under the provisions of this Section 29.5 due to
Landlord's status as either an "owner" or "operator" under any Environmental
Laws.

	Survival: Tenant's and Landlord's
obligations and liabilities pursuant to the provisions of this Section 29 shall
survive the expiration or earlier termination of this Lease. If it is determined
by Landlord that the condition of all or any portion of the Project or the
Adjacent Park is not in compliance with the provisions of this Lease with
respect to Tenant's Hazardous Materials, including without limitation all
Environmental Laws, at the expiration or earlier termination of this Lease, then
Landlord may require Tenant to hold over possession of the Premises until Tenant
can surrender the Premises to Landlord in the condition required by this Lease,
including without limitation, the conduct or performance of any closures as
required by any Environmental Laws. For purposes hereof, the term "reasonable
wear and tear" shall not include any deterioration in the condition or
diminution of the value of any portion of the Project or the Adjacent Park
caused by storage, use, transportation, release, discharge or emission of
Tenant's Hazardous Materials.  Any such holdover by Tenant will be with
Landlord's consent, will not be terminable by Tenant in any event or
circumstance and will otherwise be subject to the provisions of Section 20 of
this Lease.

	Landlord's Obligations. Landlord agrees
that, as between Landlord and Tenant, if any Environmental Law would require any
investigation, clean up, removal, restoration or other remediation (including,
without limitation, preparation of any feasibility studies or reports and the
performance of any and all closures), of a Hazardous Material other
than Tenant's Hazardous Material(s), that is present on or about the
Project or the Adjacent Park, or the soil, groundwater, surface water, ambient
air or building materials thereof, then Landlord shall, or shall cause a third
party to, promptly investigate, clean up, remove, restore and otherwise
remediate (including, without limitation, preparation of any feasibility studies
or reports and the performance of any and all closures) such Hazardous Material
such that the affected portions of the Project and the Adjacent Park are
returned to the condition required by applicable Environmental Laws with respect
to the continued use of the Premises for the uses thereof permitted by this
Lease then being made by Tenant.

	Financial Statements

Tenant and any permitted Transferee, for the reliance of Landlord,
any lender holding or anticipated to acquire a lien upon any portion of the
Project or any prospective purchaser of any portion of the Project within ten
(10) days after Landlord's request therefor, but not more often than once
annually so long as Tenant is not in material default of this Lease, shall
deliver to Landlord the then current audited financial statements of Tenant
(including interim periods following the end of the last fiscal year for which
annual statements are available). If audited financial statements have not been
prepared, Tenant and any permitted Transferee shall provide Landlord with
unaudited financial statements and such other information, the type and form of
which are acceptable to Landlord in Landlord's reasonable discretion, which
reflects the financial condition of Tenant and any permitted Transferee.

	General Provisions

	Time: Time is of the essence in this Lease and with respect to
each and all of its provisions in which performance is a factor.

	Successors and Assigns: The covenants
and conditions herein contained, subject to the provisions as to assignment,
apply to and bind the heirs, successors, executors, administrators and assigns
of the parties hereto.

	Recordation: Tenant and Landlord shall
execute and deliver a short form memorandum of this Lease which Tenant may
record in the Official Records of Alameda County, California.  Concurrently with
Tenant's execution and delivery of such memorandum, Tenant shall execute in
recordable form a quitclaim deed which shall be delivered to Landlord's legal
counsel, the recordation of which shall not take place prior to the expiration
or earlier termination of this Lease.  Upon the expiration or earlier
termination of this Lease, within ten (10) days of Landlord's written request,
Tenant shall deliver to Landlord a replacement quitclaim deed in recordable form
confirming Tenant's relinquishment of all of Tenant's right, title and interest
in and to the Project and/or the Adjacent Park.
	Landlord
Exculpation: The liability of Landlord to Tenant for any default by
Landlord under the terms of this Lease shall be limited to the actual interest
of Landlord in the Project and, prior to the creation of the Lot, in Alameda
County APN 441-0065-05-01, and Tenant agrees to look solely to Landlord's
interest in such property for satisfaction of any liability of Landlord under
this Lease.  Tenant shall not look to other assets of Landlord nor seek any
recourse against the assets of any Landlord Parties.  "Landlord
Parties" shall mean (i) the individual partners, members, directors,
officers, shareholders, agents or employees of Landlord, including without
limitation, any property management company of Landlord and (ii) the partners,
members, directors, heirs, employees, representatives, agents, contractors,
successors and assigns of any of person or entity mentioned in clause (i) above.
It is the parties' intention that Landlord and the Landlord Parties shall not in
any event or circumstance be personally liable, in any manner whatsoever, for
any judgment or deficiency hereunder or with respect to this Lease. The
liability of Landlord under this Lease is limited to its actual period of
ownership of title to the Project.

	Severability and Governing Law: Any
provisions of this Lease which shall prove to be invalid, void or illegal shall
in no way affect, impair or invalidate any other provisions hereof, and such
other provision shall remain in full force and effect. This Lease shall be
governed by, and construed in accordance with, the laws of the State of
California.

	Attorneys' Fees: In the event any
dispute between the parties results in litigation or other proceeding, the
prevailing party shall be reimbursed by the party not prevailing for all
reasonable costs and expenses, including, without limitation, reasonable
attorneys' and experts' fees and costs incurred by the prevailing party in
connection with such litigation or other proceeding, and any appeal thereof.
Such costs, expenses and fees shall be included in and made a part of the
judgment recovered by the prevailing party, if any.  In addition, Landlord shall
be entitled to reasonable attorneys' fees, costs and expenses incurred in (i)
the preparation and service of notices of default in accordance with this Lease
and consultations in connection therewith, whether or not a legal action is
subsequently commenced in connection with such default or breach of this Lease,
(ii) connection with the requirement of any of Landlord's lenders that Landlord
carry Property Insurance pursuant to Section 27.7, and (iii) in connection with
the proposed amendment of that certain lease dated June 29, 2000 between
Landlord's predecessor in interest and Tenant with respect to premises
consisting of approximately 41,472 square feet of space located in Building A of
the Adjacent Park.

	Entire Agreement: It is understood and
acknowledged that there are no oral agreements between the parties hereto
affecting this Lease, and this Lease supersedes and cancels any and all previous
negotiations, arrangements, brochures, agreements and understandings, if any,
between the parties hereto or displayed by Landlord to Tenant with respect to
the subject matter thereof, and none thereof shall be used to interpret or
construe this Lease. This Lease and any side letter or separate agreement
executed by Landlord and Tenant in connection with this Lease and dated of even
date herewith contain all of the terms, covenants, conditions, warranties and
agreements of the parties relating in any manner to the rental, use and
occupancy of the Premises, shall be considered to be the only agreement between
the parties hereto, and none of the terms, covenants, conditions or provisions
of this Lease may be modified, deleted or added to except in writing signed by
the parties hereto. All negotiations and oral agreements acceptable to both
parties have been merged into and are included herein. There are no other
representations or warranties between the parties, and all reliance with respect
to representations is based totally upon the representations and agreements
contained in this Lease. The parties acknowledge that (i) each party and/of its
counsel have reviewed and revised this Lease, and (ii) no rule of construction
to the effect that any ambiguities are to be resolved against the drafting party
shall be employed in the interpretation or enforcement of this Lease or any
amendments or exhibits to this Lease or any document executed and delivered by
either party in connection with this Lease.

	Warranty of Authority: On the date that
Tenant executes this Lease, Tenant shall deliver to Landlord an original
certificate of status for Tenant issued by the California Secretary of State or
statement of partnership for Tenant filed with the California Secretary of
State, as applicable, and such other documents as Landlord may reasonably
request with regard to the lawful existence of Tenant. Each person executing
this Lease on behalf of a party represents and warrants that (1) such person is
duly and validly authorized to do so on behalf of the entity it purports to so
bind, and (2) if such party is a partnership, corporation or trustee, that such
partnership, corporation or trustee has full right and authority to enter into
this Lease and perform all of its obligations hereunder. Tenant hereby warrants
that this Lease is legal, valid and binding upon Tenant and enforceable against
Tenant in accordance with its terms.
	Notices: All
notices, demands, statements or communications (collectively, "Notices") given
or required to be given by either party to the other hereunder shall be in
writing, shall be sent by United States next business day mail, postage prepaid,
or delivered personally (i) to Tenant at the Tenant's Address set forth in the
Basic Lease Information, or to such other place as Tenant may from time to time
designate in a Notice to Landlord; or (ii) to Landlord at Landlord's Address set
forth in the Basic Lease Information, or to such other firm or to such other
place as Landlord may from time to time designate in a Notice to Tenant. Any
Notice will be deemed given on the next business day after the date it is mailed
as provided in this Section 31.9 or upon the date personal delivery is
made.

	Joint and Several; Covenants and
Conditions: If Tenant consists of more than one person or entity, the
obligations of all such persons or entities shall be joint and several. Each
provision to be performed by Tenant hereunder shall be deemed to be both a
covenant and a condition.

	Confidentiality: Tenant acknowledges
that the content of this Lease and any related documents are confidential
information. Tenant shall keep and maintain such confidential information
strictly confidential and shall not disclose such confidential information to
any person or entity other than Tenant's financial, legal and space planning
consultants.

	Submission of Lease: Submission of this
instrument for examination or signature by Tenant does not constitute a
reservation of or an option for lease, and it is not effective as a lease or
otherwise until execution and delivery by both Landlord and Tenant.

	Signs

All signs and graphics of every kind visible in or from public
view or corridors or the exterior of the Premises shall be subject to Landlord's
prior written approval, which approval shall not be unreasonably withheld or
delayed, and shall be subject to and in compliance with all applicable Laws,
Development Documents, Recorded Matters, Rules and Regulations. Tenant shall
remove all such signs and graphics prior to the expiration or earlier
termination of this Lease. Such installations and removals shall be made in such
a manner as to avoid damage or defacement of the Premises. Tenant shall repair
any damage or defacement, including without limitation, discoloration caused by
such installation or removal. Landlord shall have the right, at its option, to
draw on the Lease Collateral such sums as are reasonably necessary to remove
such signs and make any repairs necessitated by such removal. Notwithstanding
the foregoing, in no event shall any: (a) neon, flashing or moving sign(s) or
(b) sign(s) which are likely to interfere with the visibility of any sign,
canopy, advertising matter, or decoration of any kind of any other business or
occupant of the Building or the other portions of the Project be permitted
hereunder. Tenant further agrees to maintain each such sign and graphics, as may
be approved, in good condition and repair at all times.

	Mortgagee Protection

Upon any default on the part of Landlord, Tenant will give written
Notice by registered or certified mail to any beneficiary of a deed of trust or
mortgagee of a mortgage covering the Premises who has provided Tenant with
notice of its interest together with an address for receiving Notice, and shall
offer such beneficiary or mortgagee a reasonable opportunity to cure the
default, including time to obtain possession of the Premises by power of sale or
a judicial foreclosure, if such should prove necessary to effect a cure. If such
default cannot be cured within such time period, then such additional time as
may be necessary will be given to such beneficiary or mortgagee to effect such
cure so long as such beneficiary or, mortgagee has commenced the cure within the
original time period and thereafter diligently pursues such cure to completion,
in which event this Lease shall not be terminated while such cure is being
diligently pursued. Tenant agrees that each lender to whom this Lease is
assigned by Landlord is an express third party beneficiary hereof. Tenant shall
not make any prepayment of Rent more than one (1) month in advance without the
prior written consent of each such lender, except if Tenant is required to make
quarterly payments of Rent in advance pursuant to the provisions of Section 10
above. Tenant waives the collection of any deposit from such lender(s) or any
purchaser at a foreclosure sale of such lender(s)' deed of trust unless the
lender(s) or such purchaser shall have actually received and not refunded the
deposit. Tenant agrees to make all payments under this Lease to the lender with
the most senior encumbrance upon receiving a direction, in writing, to pay said
amounts to such lender. Tenant shall comply with such written direction to pay
without determining whether an event of default exists under such lender's loan
to Landlord. If, in connection with obtaining financing for the Premises or any
other portion of the Project, Landlord's lender shall request reasonable
modification(s) to this Lease as a condition to such financing, Tenant shall not
unreasonably withhold, delay or defer its consent thereto, provided such
modifications do not materially and adversely affect Tenant's rights hereunder
or the use, occupancy or quiet enjoyment of Tenant hereunder.

	Warranties of Tenant

Tenant hereby warrants and represents to Landlord, for the express
benefit of Landlord, that Tenant has undertaken a complete and independent
evaluation of the risks inherent in the execution of this Lease and the
operation of the Premises for the use permitted hereby, and that, based upon
said independent evaluation, Tenant has elected to enter into this Lease and
hereby assumes all risks with respect thereto. Tenant hereby further warrants
and represents to Landlord, for the express benefit of Landlord, that in
entering into this Lease, Tenant has not relied upon any statement, fact,
promise or representation (whether express or implied, written or oral) not
specifically set forth herein in writing and that any statement, fact, promise
or representation (whether express or implied, written or oral) made at any time
to Tenant, which is not expressly incorporated herein in writing, is hereby
waived by Tenant.

	Brokerage Commission

Landlord and Tenant each represents and warrants for the benefit
of the other that it has had no dealings with any real estate broker, agent or
finder in connection with the Premises and/or the negotiation of this Lease,
except for the Broker(s) specified in the Basic Lease Information, and that it
knows of no other real estate broker, agent or finder who is or might be
entitled to a real estate brokerage commission or finder's fee in connection
with this Lease or otherwise based upon contacts between the claimant and
Tenant. Each party shall indemnify and hold harmless the other from and against
any and all liabilities or expenses arising out of claims made for a fee or
commission by any real estate broker, agent or finder in connection with the
Premises and this Lease other than Broker(s), if any, resulting from the actions
of the indemnifying party. Unless expressly agreed to in writing by Landlord and
Broker(s), no real estate brokerage commission or finder's fee shall be owed to,
or otherwise payable to, the Broker(s) for any renewals or other extensions of
the initial Term of this Lease or for any additional space leased by Tenant
other than the Premises as same exists as of the Lease Date. Tenant further
represents and warrants to Landlord that Tenant will not receive (i) any portion
of any brokerage commission or finder's fee payable to the Broker(s) in
connection with this Lease or (ii) any other form of compensation or incentive
from the Broker(s) with respect to this Lease.

	Quiet Enjoyment

Landlord covenants that, upon the paying of Rent and observing and
keeping the covenants, agreements and conditions of this Lease on its part to be
kept, and during the periods that Tenant is not otherwise in default of any of
the terms or provisions of this Lease, and subject to the rights of any of
Landlord's lenders, (i) that Tenant shall and may peaceably and quietly have,
hold, occupy and enjoy the Premises and the parking and access areas described
in Section 1 during the Term of this Lease, and (ii) neither Landlord, nor any
successor or assign of Landlord, shall disturb Tenant's occupancy or enjoyment
of the Premises, the parking rights granted to Tenant in Section 1, and/or
access to any portions of the Lot. The foregoing covenant is in lieu of any
other covenant express or implied.

	Right of First
Offer

	Subject to Section 37.4, during the term of the Lease (as it may
be extended from time to time), Tenant shall have a one-time right of
first offer to purchase ("Right of First Offer") the Project  and, prior to the
creation of the Lot, Alameda County APN 441-0065-05-01 (the "Offer Property").
Tenant's Right of First Offer, as granted herein, shall be void if, at the time
Tenant attempts to exercise the Right of First Offer, Tenant is in default in
the performance of any of its obligations under the Lease beyond the period
provided for the cure thereof, if any.
	Provided the above condition is satisfied, if Landlord desires to sell the
Offer Property, Landlord shall give Tenant written notice, by facsimile and by
U. S. Mail, of Landlord's intention to market the Offer Property for sale
("Landlord's Marketing Notice") stating the terms upon which Landlord desires to
consummate the sale of the Offer Property. During the ten (10) business day
period following Tenant's receipt of Landlord's Marketing Notice, Tenant shall
have the right to (a) inform Landlord that Tenant accepts the terms set forth in
Landlord's Marketing Notice or (b) make a counter-offer to Landlord to purchase
the Offer Property on other terms, or (c) reject Landlord's offer.  If Tenant
unconditionally accepts Landlord's offer or if Landlord accepts a counter-offer
from Tenant, then the effect thereof shall be to bind the parties to the sale of
the Offer Property on the terms thereof.  If (i) Tenant rejects Landlord's
offer, (ii) fails to accept Landlord's offer or (iii) makes a counter offer that
Landlord refuses to accept, all rights under this Right of First Offer shall
terminate and be of no further force and effect. Time is of the essence
herein.
	This Right of First Offer is personal to Tenant and may not be assigned,
voluntarily or involuntarily, separate from or as a part of the Lease; provided,
however, the Right of First Offer shall continue in effect following a Transfer
of the Lease to an Affiliate (as defined in Section 16.7) or to a Transferee
resulting from a Transfer that has been consented to by Landlord.
	This Right of First Offer shall not apply to (but
shall survive) any determination of Landlord or any of its members or the
beneficiaries of its members to sell, gift or otherwise transfer all or any
portion of the Offer Property (i) to a person (or persons) or entity (or
entities) that is(are) a member(s) of Landlord or the beneficiary of a member of
Landlord; (ii) to an entity that is owned, controlled or affiliated with any
person or entity that is a member of Landlord; (iii) for purposes of estate
planning.  However, any such transferee of the Offer Property shall be bound
by this Right of First Offer.
	This Right of First Offer shall be subject and subordinate to the lien of
any deed of trust encumbering the Property and shall not apply to any
foreclosure or deed in lieu thereof; provided, however, that, except as may be
set forth in a Subordination Agreement executed by Tenant and the holder of such
deed of trust, this Right of First Offer will survive the foreclosure (or deed
in lieu thereof) and be binding on the transferee of the Premises pursuant
thereto.

 [Remainder of page intentionally left blank.  Signature page
follows.]

IN WITNESS WHEREOF, this Lease is executed by the parties as of the Lease
Date referenced on Page 1 of this Lease.

	
Tenant:
	
Landlord:

	
CELL GENESYS, INC., 

a Delaware corporation

By: ___________________________________

Its: ___________________________________

Date: _________________________________

By: __________________________________

Its: ___________________________________

Date: _________________________________
	
F & S HAYWARD II, LLC, a Delaware limited liability company

By:_______________________________

Todd B. Foster, Manager

By:_______________________________

Kirk C. Syme, Manager

 

 

 

	 	 

If Tenant is a CORPORATION, the authorized officers must sign on behalf of
the corporation and indicate the capacity in which they are signing. The Lease
must be executed by the president or vice-president and the secretary or
assistant secretary, unless the bylaws or a resolution of the board of directors
shall otherwise provide, in which event, the bylaws or a certified copy of the
resolution, as the case may be, must be attached to this Lease.

Exhibit A to Lease Agreement

LEGAL DESCRIPTION OF LOT

Real property situated in the City of Hayward, County of Alameda, State of
California, described as follows:

PARCEL A:

Parcel Two, Parcel Map 7785, Filed December 26, 2001 in Map Book 262,
Pages 48 through 51, Alameda County Records.

PARCEL B:

Together with an appurtenant easement for vehicular & pedestrian
ingress and egress over that portion of Parcel One of said Parcel Map 7784 lying
within the area designated as "28' access easement" as shown on said
map.

PARCEL C:

Also together with an appurtenant easement for private utilities over
that portion of Parcel One of said Parcel Map 7785 lying within the area
designated as "10' P.S.D.E." and "10' P.S.S.E." as shown on
said map.

Exhibit A-1 Site Plan

Exhibit A-2 to Lease

[Legal Description of Adjacent Park]

PARCEL 1:

A portion of Lot 2, Obermuller Tract filed May 8, 1906, Map Book 21, Page 21,
Alameda County Records, described as follows:

Beginning at the point of intersection of the center line of Depot Road, also
known as County Road No. 956, with the center line of Clawiter Road, also known
as County Road No. 1649, as said roads are shown on said Map; running thence
along the said last mentioned line north 1° 56' west (the bearing north 1° 56'
west being assumed for the purpose of this description) 414.85 feet to a point
on a line drawn parallel with the southern line of said Lot 2, distant north 1°
56' west 20.00 feet from the southern boundary line thereof; thence along the
said parallel line so drawn north 88° 00' east 451.15 feet to a point on the
northeastern line of Industrial Boulevard, also known as County Road No. 8085,
as described in instrument from Susumu Matsumoto, et al., to County of Alameda,
dated January 12, 1961, recorded February 27, 1961, Series AS/23921, Reel 272,
Image 849, Official Records of Alameda County, said last mentioned point being
the actual point of commencement; running thence along the last mentioned line
the two following courses and distances; north 44° 11' 57" west 123.71 feet, and
thence Northwesterly along the arc of a curve to the right with a radius of
1000.00 feet tangent to the said last mentioned arc 135.86 feet to a point on a
line drawn parallel with the northern line of said Lot 2 and distant south 1°
56' east 127.74 feet therefrom; thence along the said last mentioned parallel
line so drawn north 88° 00' east 57.10 feet to a point on a line drawn parallel
with the said centerline of Clawiter Road, distant north 88° 00' east 351.00
feet therefrom; thence along the said last mentioned parallel line so drawn
north 1° 56' west 127.74 feet to a point on the northern line of said Lot 2;
thence along the said last mentioned line north 88° 00' east 693.59 feet; thence
south 3° 41' 56" east 326.14 feet to a point on said line drawn parallel with
the southern line of said Lot 2 and distant north 1° 56' west 20.00 feet
therefrom; thence along the said last mentioned parallel line so drawn south 88°
00' west 593.51 feet to the actual point of commencement.

PARCEL 2:

A right of way for roadway purposes over and along the following described
parcel of land:

A portion of Lot 2, Obermuller Tract, filed May 8, 1906, Map Book 21, Page
21, Alameda County Records, described as follows:

Beginning at the point of intersection of a line drawn parallel with the
southern line of said Lot 2, distant 20.00 feet northerly therefrom measured at
right angles thereto with the northeastern line of Industrial Boulevard, also
known as County Road No. 8085, as described in instrument from Susumu Matsumoto,
et al., to County of Alameda, dated January 12, 1961, recorded February 27,
1961, Series AS/23921, Reel 272, Image 849, Official Records of Alameda County;
thence along the Northeastern line of Industrial Boulevard south 44° 11' 57"
east 27.00 feet to a point on the said southern line of Lot 2; thence along the
said last mentioned line north 88° 00' east 575.97 feet until intersected by a
line drawn south 3° 41' 56" east from a point on the northern line of said Lot 2
distant thereon north 88° 00' east 1034.59 feet from the point of intersection
thereof with the center line of Clawiter Road, also known as County Road No.
1649 as said road is shown on said Map; thence along the line so drawn north 3°
41' 56" west 20.01 feet to a point on the said first mentioned parallel line so
drawn; thence along the said last mentioned line parallel line south 88° 00'
west 593.51 feet to the point of beginning.

PARCEL 3:

Portion of Lot 3 of the map of the Obermuller Tract, filed May 8, 1906, in
Book 21 of Maps, Page 21, in the office of the County Recorder of Alameda
County, described as follows:

Beginning at the intersection of the Southern line of the land described in
the deed To Roy N. Jensen, et ux, recorded January 13, 1967, on Reel 1901, Image
463, Alameda County Records, with the Eastern line of Industrial Boulevard, as
said line was established by Grant of Right of Way to County of Alameda,
recorded June 8, 1961, on Reel 341, Image 848, Instrument No. AS/69702, Alameda
County Records; running thence along said Eastern line, Southwesterly on the arc
of a curve to the left having a radius of 1454 feet, a distance of 314.80 feet
to the Southern line of said Lot 3; thence along the last named line, North 88°
East 1108.22 feet to the Eastern line thereof; thence along the last named line,
North 2° 30' West 292.69 feet to said Southern line firstly mentioned; and
thence along the last named line, South 88° West 1219.29 feet to the point of
beginning.

Assessor's Parcel No: 441-0065-025 and 441-0065-005-01

Excepting therefrom Parcel Two, Parcel Map 7785, Filed December 26,
2001 in Map Book 262, Pages 48 through 51, Alameda County Records.

Exhibit B to Lease Agreement

WORK LETTER AGREEMENT

This Work Letter Agreement ("Work Letter") is entered into concurrently
with the execution of that certain Lease dated as of January 7, 2002 ("Lease")
by and between CELL GENESYS, INC., a Delaware corporation ("Tenant") and
F & S HAYWARD II, LLC, a Delaware limited liability company
("Landlord").  The terms and provisions of this Work Letter are an
integral part of the Lease, and the Lease is deemed incorporated herein as
though fully set forth herein.

In consideration of the mutual covenants contained below, Landlord and Tenant
agree as follows:

	Definitions.  For
purposes of this Work Letter, (i)
capitalized terms not defined in this Work Letter but defined in the Lease shall
have the same meaning ascribed to such terms in the Lease and (ii) other  terms
used in this Work Letter shall have the meaning ascribed to such term as set
forth in this paragraph 1 or elsewhere in this Work Letter.

	"Architect's Certificate" shall mean a statement by
Landlord's Architect delivered to Landlord and Tenant confirming (i) the total
gross area of all enclosed floors of the building measured from the outside
finished surface of the outer building walls, without any deductions and (ii)
that the Substantial Completion Date has occurred.
	"Construction Drawings" shall mean
(i) the plans and specifications for the construction of Landlord's Work
prepared by Landlord's Architect, identified on Schedule III to Work Letter
Agreement and (ii) such changes thereto as are approved by Landlord, Tenant
and, if required, by any governmental or quasi-governmental authority.  Tenant
shall have no right to withhold consent to any changes that may be required by
any governmental or quasi-governmental authority for which there is no
reasonable alternative otherwise reasonably acceptable to Landlord and Tenant,
and as to changes requested by Landlord, Tenant shall not unreasonably withhold
or delay its consent.
	"Commencement of Construction" shall be deemed to have
occurred when Landlord has (i) obtained such permits as are required by
governmental or quasi-governmental agencies having jurisdiction over the
Premises for Landlord to commence grading and other site work required in
connection with the construction of the Building and (ii) has commenced grading
or site work.
	"Early Entry Date" shall mean the date when the following
portions of Landlord's Work have been constructed:  (i) the foundation, four
tilt-up walls, structural building supports sufficient to support the second
floor deck of the Building and the second floor deck of the Building, and (ii)
Tenant has delivered to Landlord an Early Entry Election Notice, and (iii)
Landlord has afforded to Tenant access to the Building for the purpose of
installing its Tenant Improvements in accordance with the Tenant Construction
Drawings.
	"Early Entry Notice" shall mean a written notice from
Landlord to Tenant at least fifteen (15) days in advance of the Early Entry Date
informing Tenant of the date on which Landlord expects the second floor deck of
the Building to be completed.
	"Early Entry Election Notice" shall mean a written notice,
given by Tenant to Landlord within seven (7) days after Landlord gives Tenant
the Early Entry Notice, stating either that (i) Tenant elects to exercise its
Early Entry Right or (ii) Tenant elects not to exercise its Early Entry Right.
If Tenant fails to give the Early Entry Notice, Tenant shall be deemed to have
elected not to exercise its Early Entry Right.
	"Early Entry Right" shall mean the right of Tenant to elect
to enter the Building on and after the Early Entry Date and prior to the date
Landlord's Work is Substantially Completed for the purpose of installing its
Tenant Improvements in the Building.
	"Force Majeure" shall mean (i) an act of God, (including,
without limitation, flood, earthquake, epidemic, or unusually severe weather),
(ii) war, (iii) riot or civil commotion, (iv) labor dispute (including, without
limitation, strike or walkout), (v) accident, (vi) fire or other casualty, (vii)
shortage of or inability to procure labor or materials, (viii) laws or
regulations of general applicability, and (ix) acts of Tenant and/or other
occurrences beyond Landlord's reasonable control (financial inability
excepted).
	"Initial Project Specifications" shall mean the
specifications attached hereto as Schedule I to Work Letter
Agreement.
	"Landlord's Architect" shall mean Ware & Malcomb
Architects, Inc.
	"Landlord's Contractor" shall mean Wentz Group Construction
Services, a licensed general contractor selected by Landlord.
	"Landlord's Work" shall mean the construction of the
Building and Site Work described in the Initial Project Specifications attached
hereto as Schedule I (excluding any items identified therein to be
Tenant's obligation) in a good and workmanlike manner substantially in
accordance with the Construction Drawings and in accordance with all laws,
ordinances, building codes, statutes, rules, regulations and public and private
restrictions.

	"Late Delivery Items" shall mean the following portions of
the Landlord's Work that is to be constructed outside of the perimeter walls of
the Building: finish grading to the parking lot, asphalt, concrete, paving,
landscaping (hard and soft), landscape irrigation, storm drainage, utility
service lateral connections, curbs, gutters, sidewalks, specialty paving (if
required), retaining walls, fencing and gates, trash enclosures, planters,
parking lot and landscape lighting, parking lot striping and signage, connection
of site storm drainage system to city storm system main and other Landlord's
Work to be constructed outside of the perimeter walls of the Building, the
absence of which will not interfere with the commencement and prosecution of
Tenant's Work in an orderly manner.
	"Punchlist" shall mean (A) with respect to Landlord's Work,
other than the Late Delivery Items, a list, to be prepared by a representative
of Landlord and a representative of Tenant, within fifteen (15) days after
Landlord informs Tenant that Landlord believes Landlord's Work, other than the
Late Delivery Items, have been completed in accordance with the Construction
Drawings therefor, that identifies any portion of Landlord's Work that is
incomplete or defective or not in conformance with the Construction Drawings
therefor; and (B) with respect to the Late Delivery Items, a list to be prepared
by a representative of Landlord and a representative of Tenant, within fifteen
(15) days after Landlord informs Tenant that Landlord believes the Late Delivery
Items have been completed and that identifies any portion of the Late Delivery
Items that is incomplete or defective or not in conformance with the
Construction Drawings. The Punchlist may be augmented within thirty (30) days
following completion of the Tenant Improvements, if Tenant discovers incomplete
or defective work not previously listed; provided that the failure to include
any item on the Punchlist or to augment the Punchlist shall not release Landlord
from its obligation to perform and complete the Landlord's Work.
	"Punchlist Items" shall mean any item set forth on a
Punchlist.
	 "Rent Commencement Date" shall mean the following:

	On the date which is forty-five (45) days after the Early Entry Date if (i)
Tenant exercises its Early Entry Right in accordance with this Work Letter
following delivery to Tenant of an Early Entry Notice, and (ii) Landlord affords
to Tenant access to the Building for the purpose of installing its Tenant
Improvements.
	In all other cases, the Substantial Completion Date.

	"Site Plan" shall mean the depiction of the Adjacent Park,
the Lot and the Building, attached to the Lease as Exhibit A.
	"Substantial Completion" or "Substantially
Completed" shall mean that Landlord's Work has been completed in
conformance with the Construction Drawings, except for:

	Punchlist Items and Late Delivery Items that do not affect (i) the ability
of Tenant to commence and prosecute Tenant's Work in an orderly manner in
accordance with this Work Letter Agreement; and 
	Inoperable utility systems (domestic water, fire service water, electricity,
gas, sanitary sewer and storm drain) services, so long as all (i)physical
construction of such systems has been completed, and (ii) the utilities can be
made operable by completion of Tenant's Work (including the installation of
utilities meters) and payment of the customary usage charges therefor.

	"Substantial Completion Date" shall mean the date
Landlord's Work is Substantially Completed.
	"Tenant Construction Drawings" shall mean all space plans, working
drawings and specifications for Tenant's Work together with amendments thereto
reasonably required in order for Tenant to construct and complete the Tenant's
Work.  Tenant Construction Drawings shall be approved by both Landlord (as
provided below) and Tenant by causing the Tenant Construction Drawings to be
initialed and dated by a representative of Tenant and a representative of
Landlord.  The initialed and dated Tenant Construction Drawings, as the same may
be modified by change orders in accordance with this Work Letter Agreement, are
hereinafter referred to as the "Approved Tenant Construction
Drawings".
	"Tenant's Construction Expense" shall mean all costs
incurred by Tenant in connection with the construction of the Tenant
Improvements. 
	"Tenant Improvements" shall mean any work and improvements
constructed by Tenant as shown on the Approved Tenant Construction
Drawings.
	"Tenant's Work" shall mean any work performed by Tenant in
constructing and installing the Tenant Improvements.
	Landlord's Construction Obligation.  

	Commence and Pursue Diligently.
Landlord, at its sole cost and expense, shall construct Landlord's Work
substantially in conformance with the Construction Drawings.  Once Landlord's
Work has been commenced, Landlord shall diligently pursue such work to
completion (without any obligation to cause work to be done during other than
normal hours on normal business days), subject however, to (i) delays and
interference with Landlord's Work resulting from Tenant's election to enter the
Building pursuant to Tenant's exercise of the Early Entry Right and (ii) delay
resulting from Force Majeure.  The occurrence of the Substantial Completion Date
prior to the completion of the Landlord's Work shall not relieve Landlord of its
obligation to complete Landlord's Work in accordance wit this Work Letter,
including all Late Delivery Items and Punchlist Items.

	Copies of Construction Drawings and
Permits.  Landlord will provide to Tenant a print of the Construction
Drawings promptly after receipt of all approvals and permits for the
construction thereof. 

	Conformity with Construction Drawings;
Changes.  Landlord's Work shall be deemed in substantial conformity
with the Construction Drawings notwithstanding substitutions of materials for
those specified if the substitutions are substantially equal to or higher in
quality than as specified in the Construction Drawings and do not interfere
materially with or materially increase the cost of the Tenant Improvements.  If
Landlord makes any changes to its Construction Drawings at the request of Tenant
to accommodate Tenant's requirements, the same shall be documented in a change
order approved in writing by Landlord and Tenant, and Tenant shall pay to
Landlord, prior to the implementation of such changes, all costs and expenses
associated with such changes.  
	Completion of Late
Delivery and Certain Punchlist Items.  

	On or before the Final Completion Date (hereafter defined), Landlord
shall complete all the Late Delivery Items and any Punchlist Items (whether
relating to the Late Delivery Items or other Landlord's Work) with respect to
work shown on the Construction Drawings that, if not completed by said date,
would impede Tenant's ability to obtain a certificate of occupancy or other
similar authorization for legal occupancy of the Premises.  "Final
Completion Date" shall mean the last to occur of (i) ninety (90) days after
Substantial Completion or (ii) the date Tenant anticipates obtaining a
certificate of occupancy or other similar authorization for the legal occupancy
of the Premises and the Tenant's Work, which date shall not be earlier than
thirty (30) days after written notice to Landlord.  Notwithstanding the
foregoing, the Final Completion Date shall be extended by one day for each day
after Substantial Completion that (a) incomplete Tenant's Work or the activities
of Tenant on or about the Premises or the Common Area (as evidenced by the delay
log maintained by Landlord's Contractor) actually impedes the completion of the
Landlord's Work that has not been completed by such dates ("Tenant
Delay") and/or (b) the Landlord's Work is actually delayed because the City
of Hayward, as a condition of granting a temporary certificate of occupancy,
certificate of occupancy or similar authorization for Tenant to occupy the
Premises, requires Landlord to do work not shown on the Construction
Drawings.  If such Late Delivery and Punchlist Items are not completed as
provided in this Section, then, as it sole and exclusive remedy:

	Tenant may, but is not required, to take over and complete such Late
Delivery or Punchlist Items and, upon written demand, Landlord shall reimburse
Tenant for the reasonable cost of completing such Late Delivery Items and
Punchlist Items, together with interest thereon at the Interest Rate, and if
Landlord fails to reimburse Tenant for the reasonable cost of correcting such
incomplete Late Delivery Items and Punchlist Items within thirty (30) days
following delivery of written demand for payment, Tenant may offset the amount
payable by Landlord against the Rent next payable by Tenant under the
Lease.
	If the Late Delivery Items and any Punchlist Items that are part of
Landlord's Work as shown on the Construction Drawings have not been completed by
the Final Completion Date, then the Rent payable under this Lease shall be
abated one day for each day beyond the Final Completion Date that such Late
Delivery Items and Punchlist Items remain incomplete for reasons other than
Tenant Delay or, if Tenant takes over the completion of such Later Delivery
Items or Punchlist Items, until the date Tenant, with reasonable diligence,
could reasonably be expected to complete such work.  Notwithstanding the
foregoing provisions of this Section 2, there shall be no abatement of Rent to
the extent the failure to complete the Late Delivery Items and/or the Punchlist
Items results from the failure by the City of Hayward to issue a temporary
certificate of occupancy, certificate of occupancy or other similar
authorization for Tenant to occupy the building following Substantial Completion
because of a requirement by the City of Hayward that work be undertaken and
completed that was not shown on the Construction Drawings. 

	Final Completion of Remaining Punchlist
Items. On or before thirty (30) days following the Final Completion
Date, Landlord shall complete any remaining Punchlist Items and/or Late Delivery
Items not required to be completed pursuant to Section 2.4; provided, however
that, Landlord shall not be in breach or default under this Section if for the
time and to the extent (i) Landlord is unable to complete such remaining
Punchlist Items and/or Late Delivery Items while any portion of Tenant's Work is
incomplete and/or Tenant otherwise prevents, impedes or interferes with
Landlords completion of the remaining Punchlist Items and/or Late Delivery Items
and (ii) Landlord promptly completes such remaining Punchlist Items and/or Late
Delivery Items after the impediment is eliminated.  If Landlord is in breach or
default under this Section , then, upon Landlord's failure to commence such
remaining Punchlist Items and/or Late Delivery Items within ten (10) days after
written notice by Tenant to Landlord of Tenant's intention to complete the
remaining Punchlist Items and/or Late Delivery Items itself and diligently
pursue them to completion, Tenant, as its sole and exclusive remedy, may take
over and complete the remaining Punchlist Items and/or Late Delivery Items and,
upon written demand, Landlord shall reimburse Tenant for the reasonable cost of
such completion, together with interest thereon at the Interest Rate. If
Landlord fails to reimburse Tenant for the reasonable cost of correcting such
remaining Punchlist Items and/or Late Delivery Items within thirty (30) days
following delivery of written demand for payment, Tenant may offset the amount
payable by Landlord against the Rent next payable by Tenant under the
Lease.

	Reports to Tenant. Landlord shall
provide regular reports to Tenant with respect to the progress of, and
anticipated date for, completion of Landlord's Work, allow Tenant to conduct
inspections of Landlord's Work and permit Tenant to participate in construction
meetings.
	DELAY IN
COMMENCEMENT/COMPLETION:  If Tenant does not exercise
its Early Entry Right and for any reason the Substantial Completion Date has not
occurred on or before November 30, 2003, then, as its sole remedy, Tenant may
terminate this Lease by delivery of written notice to Landlord at any time prior
to the actual occurrence of the Substantial Completion Date.
	Acknowledgment of
Substantial Completion.

	If Tenant has not exercised Tenant's Early Entry Right, then
upon the occurrence of Substantial Completion Date, Landlord shall grant Tenant
full and complete access to the Building in accordance with applicable Law,
subject to Landlord's right to complete the Punchlist Items and the Late
Delivery Items.   If Tenant exercises Tenant's Early Entry Right, then Landlord
shall grant Tenant such access to the Building as is reasonably required for the
prosecution of Tenant's Work by Tenant and its contractors and suppliers in
accordance with this Work Letter, and, upon completion of Landlord's Work
pursuant to Section 2.4 of this Work Letter Agreement, Landlord shall then grant
Tenant full and complete access to the Premises in accordance with applicable
Law and subject to the other terms of this Work Letter.  
	Subject to Tenant's rights pursuant to Section 2 of the Lease, in the event
of a dispute between Landlord and Tenant regarding the occurrence of the
Substantial Completion Date, the Substantial Completion Date shall be determined
by Landlord's Architect, who shall certify in writing to both Landlord and
Tenant that the Landlord's Work has been completed substantially in accordance
with all applicable plans and specifications relating to Landlord's Work,
subject only to Punchlist Items.  

	Contractor's Warranty. Landlord shall
make commercially reasonable efforts to obtain for the benefit of Tenant all of
Landlord's rights, if any, under any warranties and guaranties applicable to
Landlord's Work, including, without limitation those (i) from Landlord's general
contractor, subcontractors, architects and designers, and (ii) covering any
materials and equipment furnished by Landlord's general contractor,
subcontractors, materialmen or suppliers.
	Entry for Tenant's
Improvements.  

	Early Entry Notice.  Landlord shall give
Tenant the Early Entry Notice.  If Tenant gives the Early Entry Election Notice
and states that Tenant elects to exercise its Early Entry Right, then Landlord
shall permit Tenant to enter the Building for the purpose of constructing the
Tenant Improvements, subject, however, to Tenant's compliance with the
provisions of Section 12 of the Lease.  If Tenant gives the Early Entry Tenant
Election Notice and states that Tenant elects not to exercise its Early Entry
Right, then Tenant shall have no right to enter the Building to construct any of
the Tenant Improvements until the Substantial Completion Date.  If Tenant fails
to timely give the Early Entry Tenant Election Notice, then it shall be deemed
that Tenant has elected not to enter the Building to construct Tenant
Improvements until the Substantial Completion Date.
	Security for Tenant Improvements.

	Certain Definitions.  As used herein the
following terms shall have the following meanings:

	"Documented TI Construction Costs" shall mean, at any time, the
total amount of costs reasonably incurred by Tenant for construction of Required
Surrender Improvements in accordance with plans approved by Landlord as
evidenced by reasonable documentary evidence delivered by Tenant to Landlord
prior to the date a draw is made by Landlord under the TI Letter of Credit.
	"Required Surrender Improvement Completion Date" shall mean (i) if
Tenant exercises its Early Entry Right, the first anniversary of the Early Entry
Date, and (ii) in all other cases, the date Landlord Substantially Completes the
Landlord's Work.
	"TI Security Amount" shall mean One Million Dollars
($1,000,000.00)  less the amount of any prior drawing on a TI Letter of
Credit or application of TI Cash Collateral by Landlord pursuant to this Section
8.

	Duty to Construct Minimum
Amount of Required Surrender Improvements.  If Landlord constructs
Landlord's Work in accordance with this Work Letter and if the Work Letter is
not terminated pursuant to Section 4 of this Work Letter, then on or before the
Required Surrender Improvement Completion Date, Tenant shall construct in the
Premises Required Surrender Improvements having a Documented TI Construction
Cost of not less than One Million Dollars ($1,000,000.00).  Subject to the
foregoing, Tenant may construct, but shall have no other obligation to
construct, any Tenant's Work or make any other improvements to the Premises in
accordance with the provisions of the Lease.  Tenant shall keep the Premises and
the property on which the Premises are situated free from any mechanic's liens
arising out of construction of Tenant's Work.

	Delivery of Security.  Upon issuance of
a building permit for Landlord's Work or any portion thereof, Tenant shall
deliver to Landlord an irrevocable and negotiable stand-by letter of credit
("TI Letter of Credit") in the TI Security Amount.  The TI Letter of
Credit (i) shall provide for sight payment upon presentation of any of the
certifications described in Section 8.4 (ii) shall be issued by a nationally
recognized commercial bank acceptable to Landlord (which bank shall maintain an
office in the San Francisco Bay Area to which the TI Letter of Credit may be
presented for purposes of immediately drawing therefrom) naming Landlord as the
beneficiary thereof, and (iii) shall provide that partial drawings are
permitted. Tenant shall cause the TI Letter of Credit in the TI Security Amount
to be in effect until the earlier of (i) the date when the amount of the
Documented TI Construction Costs for Required Surrender Improvements equals One
Million Dollars ($1,000,000.00), and (ii) November 15, 2004 (the "TI Letter
of Credit Termination Date").
	Drawing Conditions for TI
Letter of Credit.  The TI Letter of Credit shall provide that it
may be drawn upon at any time on or before the TI Letter of Credit Termination
Date if Landlord certifies to the issuer any one of the following:

	Tenant has failed to complete construction of
Required Surrender Improvements having a Documented TI Construction Cost of at
least One Million Dollars ($1,000,000.00) prior to the Required Surrender
Improvement Completion Date as required by Section 8.2 of the Work Letter;
or
	A mechanic's lien has been filed with respect to the
Tenant's Work and Tenant has not caused such lien to be removed within thirty
(30) days after the filing of such lien; or 
	The TI Letter of Credit Termination Date has not
occurred and the TI Letter of Credit has not been renewed or replaced on or
before the thirtieth (30th) day prior to the date the TI Letter of
Credit is scheduled to expire.

	Maximum Amount of Draw.  

	With respect to a draw under Section 8.4.1 above, the amount of the draw
shall not exceed an amount equal to One Million Dollars ($1,000,000.00)
less the amount of Documented TI Construction Cost as of the
Required Surrender Improvement Completion Date;
	With respect to a draw under Section 8.4.2 above, the amount of the draw
shall be the amount of the mechanic's lien;
	With respect to a draw under Section 8.4.3 above, the amount of the draw
shall not exceed an amount equal to One Million Dollars ($1,000,000.00)
less the amount Landlord reasonably believes to be the Documented
TI Construction Cost as of the date of the drawing.

	Effect of
Drawing.  Payment by the issuing bank under the TI Letter of Credit
shall be deemed to be a cure of any default by Tenant under Section 8.2 in an
amount equal to such payment.  Landlord shall have the right to utilize any sum
drawn on the TI Letter of Credit pursuant to Section 8.4.1 to construct any
portion of the Required Surrender Improvements that Landlord may select.
Landlord shall have the right to utilize any sum drawn on the TI Letter of
Credit pursuant to Section 8.4.2 to pay any such mechanic's lien or
liens.

	Term of TI Letter of Credit.  The TI
Letter of Credit shall have an initial term of not less than one (1) year and
shall provide that the TI Letter of Credit shall be renewed automatically, until
the TI Letter of Credit Termination Date, unless the issuing bank delivers
written notice to Landlord at least thirty (30) days prior to the expiry date of
the TI Letter of Credit advising Landlord that the issuing bank has elected not
to renew or extend the term of the TI Letter of Credit ("Bank's Written
Notice on TI Letter of Credit").  

	Landlord's Approval. The issuer, form
and content of the TI Letter of Credit are subject to Landlord's prior approval
exercised in its sole reasonable discretion. 

	Transfer of TI Letter of Credit.  Lessee
shall use all reasonable efforts to obtain the issuing bank's agreement that the
TI Letter of Credit shall provide that it is transferable an unlimited number of
times upon Landlord's fulfillment of the issuing bank's customary conditions
thereto and paying the issuing bank's customary fees therefor.
	Substitution of Cash
Collateral for Letter of Credit.  If the Landlord receives a Bank's
Written Notice on TI Letter of Credit and despite all reasonable efforts, Tenant
is unable at least (30) days prior to the then-current expiry date of the TI
Letter of Credit to cause the TI Letter of Credit to be renewed, then on or
before said thirtieth (30th) day prior to the then-current expiry
date of the TI Letter of Credit, Tenant shall (i) provide a replacement TI
Letter of Credit or (ii) deliver to Landlord cash ("TI Cash
Collateral") to secure its obligations to the Landlord pursuant to Section
8.2 of this Work Letter in the TI Security Amount specified above for any
portion of the TI Security Amount that Tenant is unable to provide by TI Letter
of Credit.  The TI Cash Collateral shall secure the performance of Tenant's
obligations under Section 8.2 of this Work Letter.  Such TI Cash Collateral
shall be held or applied by the Landlord to any default by Tenant under Section
8.2 of this Work Letter, in the same manner as described in this Section 8 for
amounts drawn under a TI Letter of Credit.  If the aggregate of (a) the amount
of any unused portion of any TI Letter of Credit and (b) any TI Cash Collateral
held by Landlord, exceeds the TI Security Amount, then on demand from Tenant,
Landlord shall return to Tenant TI Cash Collateral in an amount equal to such
excess (less any amounts owing to the Landlord hereunder as a
consequence of any uncured default by the Tenant pursuant to Section 8.2 of this
Work Letter) within ten (10) days following Tenant's written demand therefor.
As used herein the term "TI Lease Collateral" shall mean any and all TI Letters
of Credit and/or TI Cash Collateral delivered to the Landlord by Tenant pursuant
to this Section 8.

	Commingling of TI Cash Collateral.
Landlord shall not be required to keep any TI Cash Collateral separate from
other funds, and may commingle the TI Cash Collateral with other funds of
Landlord.  Unless otherwise required by law, Tenant shall not be entitled to any
interest on any TI Cash Collateral.  

	No Tenant Right of Offset; Pledge to Landlord's
Lender.  In no event or circumstance shall Tenant have the right to
any use of the TI Lease Collateral and, specifically, Tenant may not use the TI
Lease Collateral as a credit or to otherwise offset any payments required
hereunder, except as expressly provided in Section 8.6 of this Work Letter.  If
Landlord's lender so requires, the TI Lease Collateral may be transferred to or
pledged by Landlord to such lender, subject to all of the terms and provisions
of this Lease and the TI Letter of Credit (as to TI Letter of Credit portion of
the TI Lease Collateral).

	Renewal/Non-Renewal of Letter of Credit; Draws on
Letter of Credit.  

	At any time the TI Lease Collateral includes a TI Letter of Credit, (i)
if the issuing bank shall give the Bank's Written Notice on TI Letter of Credit
to Landlord that it will not renew or extend the TI Letter of Credit for
a period ending on the earlier of (a) twelve (12) months beyond the then-current
expiry date or (b) the Letter of Credit Termination Date, and (ii) if, by and
including the thirtieth (30th) day prior to the then-current expiry
date of the TI Letter of Credit, Tenant fails to cause the TI Letter of Credit
to be renewed or extended or fails to deposit with Landlord a replacement TI
Letter of Credit or TI Cash Collateral as described above, then upon such
occurrence, in the sole discretion of Landlord, Landlord may draw on the TI
Letter of Credit in its entirety or in part, and the proceeds of the TI Letter
of Credit shall be held as TI Cash Collateral hereunder; provided, however, that
after such drawing, the total of all TI Lease Collateral then held by Landlord
shall not exceed the TI Security Amount.  If Tenant subsequently provides a
replacement TI Letter of Credit that complies with the requirements of Section 8
of this Work Letter, then Landlord shall return any unused portion of funds
drawn on the TI Letter of Credit.  The failure of Tenant to cause such renewal
or extension of the TI Letter of Credit or to provide a replacement TI Letter of
Credit or TI Cash Collateral in lieu thereof shall be a default by Tenant
hereunder with no right of Tenant to cure said default.  
	Upon a draw on the TI Letter of Credit due to Tenant's failure to cause the
renewal or replacement of the TI Letter of Credit, Landlord may deposit such
funds, which shall be TI Cash Collateral, in one or more accounts, and draw upon
such TI Cash Collateral in the manner and amount specified in Section 8 of this
Work Letter, if Tenant defaults in the performance of its obligations under
Section 8.2 of this Work Letter.  To the extent of Tenant's right, if any, to
have all or any portion of the TI Lease Collateral that is then unapplied
returned to Tenant at the time and in the amounts required by this Work Letter,
Tenant hereby grants to Landlord a security interest in Tenant's reversionary
interest in the portion of the TI Lease Collateral that Landlord has not applied
in accordance with this Work Letter, and Landlord shall be entitled to perfect
such security interest in accordance with the California Commercial Code or
other applicable law.

	Transfer of Landlord's Interest in Lease.
Landlord shall have the right, if Landlord so elects, to transfer its
interest in the TI Lease Collateral, either as security for an indebtedness or
any other transfer, and if Landlord elects to make such a transfer, Tenant shall
use all reasonable efforts to cause the issuing bank to issue a new TI Letter of
Credit payable to the benefit of the transferee in lieu of the original TI
Letter of Credit which shall thereupon be cancelled or returned to Tenant;
provided, however, Landlord or its transferee shall pay all costs and charges
imposed by the issuing bank in connection with the transfer and shall comply
with the issuing bank's other conditions to the transfer.  Tenant agrees that,
provided the TI Lease Collateral is transferred to a purchaser of the Landlord's
interest in this Lease ("Purchaser") and provided such Purchaser
assumes Landlord's obligations hereunder with respect to the TI Lease
Collateral, Landlord shall thereupon be released from all liability for the
return of the TI Letter of Credit or any other TI Lease Collateral and any
accounting in connection therewith, and in such event Tenant agrees to look
solely to the Purchaser for the return of the TI Letter of Credit and any other
TI Lease Collateral.  
	Grant of Security
Interest.  To the extent of Tenant's right, if any, to have all or
any portion of the TI Lease Collateral that is then unapplied returned to Tenant
at the time and in the amounts required by Section 8.16 of this Work Letter,
Tenant hereby grants to Landlord a security interest in Tenant's reversionary
interest in the portion of the TI Lease Collateral that Landlord has not applied
as permitted pursuant to this Section, and Landlord shall be entitled to perfect
such security interest in accordance with the California Commercial Code or
other applicable law.
	Return of Lease
Collateral.  Subject to Landlord's rights as the holder of a security
interest as provided in Section 8.15, Landlord shall return the TI Lease
Collateral (or so much thereof as remains unapplied by Landlord) to Tenant on
the earlier of the (i) the TI Letter of Credit Termination Date, or (ii) the
date the Documented TI Construction Cost first equals or exceeds One Million
Dollars ($1,000,000.00).  Subject to the other provisions of this Section 8,
Tenant waives all rights under California Civil Code Section 1950.7, or any
successor statute, to require the return of any of the TI Lease
Collateral.

	No Trust Relationship Created.  No trust
relationship is created herein between Landlord and Tenant with respect to the
TI Lease Collateral or its proceeds.  In no event or circumstance shall Tenant
have the right to any use the TI Lease Collateral or its proceeds as a credit or
to otherwise offset any payments required hereunder.  If Landlord's lender so
requires, the TI Lease Collateral and/or the proceeds thereof may be transferred
to or pledged by Landlord to such Lender, subject to all of the terms and
provisions of this Lease.  

	Survival.  The rights and obligations of
Landlord and Tenant concerning the TI Lease Collateral and Landlord's security
interest therein shall survive the expiration or earlier termination of this
Lease.
	Work to be Performed by Tenant:
Subject to obtaining Landlord's consent thereto and complying with the
provisions of Section 12 of the Lease, Tenant, at its sole cost and expense,
shall have the right, but not the obligation, to perform Tenant's Work. 

	Tenant Construction Drawings

	Architect and Contractor.  If Tenant elects to make the Tenant
Improvements, Tenant shall retain the services of an architect ("Tenant's
Architect") and a licensed general contractor selected by Tenant and
approved by Landlord (the "Improvement Contractor").  The selection of
the Improvement Contractor shall be subject to Landlord's approval which shall
not be unreasonably withheld, conditioned or delayed.

	Construction Drawings.  The Tenant
Construction Drawings for the Tenant Improvements are to be submitted to
Landlord for Landlord's approval, which approval shall not be unreasonably
withheld.  If approval is not reasonably withheld within fifteen (15) business
days following submission for approval, such Tenant Construction Drawings shall
be deemed approved.

	Commencement of Tenant Improvement
Construction. When there are (i) Approved Tenant Construction
Drawings, (ii) all necessary governmental permits and other required approvals
for the construction of the Tenant Improvements have been obtained and (iii) the
other requirements for entry (or early entry) onto the Premises for the
construction of such Tenant Improvements have been satisfied in accordance with
Section 5 or Section 7 as applicable, then Tenant shall have the right to
commence construction of Tenant Improvements in compliance with the Approved
Tenant Construction Drawings and this Work Letter.

	Change Orders.  After Landlord and
Tenant have agreed upon the Approved Tenant Construction Drawings, Tenant shall
have the right to make revisions to the Approved Tenant Construction Drawings at
Tenant's sole cost and expense. Tenant's revisions shall require Landlord's
written consent, which consent shall not be unreasonably withheld.  If consent
is not reasonably withheld within fifteen (15) business days following
submission for approval, such revisions shall be deemed approved.

	All change orders requested by Tenant shall be in writing and shall be
signed by the authorized representative designated by Tenant as permitted to
sign change orders.  Landlord or Landlord's agent shall within five (5) business
days after receipt of the change order either approve or reject the said change
order. 
	The net cost increase resulting from any change order requested by Tenant
shall be at the cost and expense of Tenant.

	Consents/Approvals/Cooperation.  Except
as specifically provided elsewhere in this Work Letter, whenever any party to
this Work Letter is required to provide any approval or consent, such approval
or consent shall not be unreasonably withheld.  The parties to this Work Letter
agree to cooperate as may be necessary in carrying out this Work Letter.

	Time is of the Essence. Time is of the
essence of each and every provision of this Work Letter.

[Remainder of page intentionally left blank.  Signature page
follows.]

IN WITNESS WHEREOF, Landlord and Tenant have executed this Work
Letter as of the date first set forth above.

	
Tenant:
	
Landlord:

	
CELL GENESYS, INC., 

a Delaware corporation

By: ___________________________________

Its: ___________________________________

Date: _________________________________

By: __________________________________

Its: ___________________________________

Date: _________________________________
	
F & S HAYWARD II, LLC, a Delaware limited liability company

By:_______________________________

Todd B. Foster, Manager

By:_______________________________

Kirk C. Syme, Manager

 

 

 

SCHEDULE I 

TO WORK LETTER AGREEMENT

INITIAL PROJECT SPECIFICATIONS

	GENERAL DESCRIPTION

	(1) Two-story concrete tilt-up building consisting of 50,000 square
feet.
	Building height of approximately 28' w/16' slab-to-slab on 1st
floor and 12' slab-to-roof.
	Bay spacing of 25' x 25'.

	BUILDING STRUCTURE

	All foundations to include footings, foundation walls or other building
foundation components required to support the entire building structure.
	Columns shall be steel box.
	All columns, beams, joists, purlins, headers, or other framing members to
support the roof, roofing membrane and stair openings.
	Structural concrete slab on grade with vapor barrier to support 125 lbs. /
sq.ft.
	2nd floor concrete slab over metal deck supported by structural
open web and columns.
	Exterior walls that enclose the perimeter of the building with steel
reinforcing and structural connections that may be necessary or required.
	All exterior glass and glazing with painted aluminum frames. Glass to be
tinted as appropriate to the aesthetic design of the building.  All exterior
doors, door closer and locking devices necessary for proper functioning.
	Hybrid Vulcraft panel roof system, or equal to support roofing
membrane.
	Built-up roofing (including a base sheet, two ply's and a cap sheet) and all
flashing by Owens-Corning, John Manville, or equal.
	Painting of all concrete walls with Tex-Coat or Kel-Tex textural paint or
equal.  All caulking of exterior concrete joint in preparation for
painting.
	The foundation should be designed to support a minimum live load of 125
pounds per square feet in all areas of top floor and 125 pounds on bottom
floor.

	BUILDING STRUCTURE (Continued)

	The floor-to-floor height of the building shall allow a minimum of 9'
interior drop ceiling height.
	Roof hatch and ladder.
	One (1) 3,500 lb. capacity elevator by Landlord; interior and lobby by
tenant.
	Two (2) interior stairs consisting of stair assemblies with metal handrails
to be provided f.o.b. at job site.

	PLUMBING

	Underground sanitary sewer lateral connected to the city sewer main the
street and piped into the building and under the concrete slab on grab for the
length of the building.  Sewer lines to consist of a four-inch (4")
sanitary sewer line.  Sanitary sewer line under the slabs will be in a close
proximity to the building restroom locations.
	Domestic water mains connected to the city water main in the street and
stubbed to the building.  Water main to the building shall be 2.5 inches in
size.
	Roof drain leaders piped and connected to the site storm drainage
systems.

	ELECTRICAL

	Gas lines connected from the city public utility mains and gas meters
adjacent to, and in close proximity to the building.  Meter supplied by utility
company at Tenant's expense.
	All primary electrical service to the building that is complete including
underground conduit and wire feeders from transformer pads into the building's
main switchgear electrical room.  The electrical characteristics of the
secondary side of transformers shall be 277/480 volt. 3 Phase and the rated
capacity of the transformers shall be 2,000 amp. 
	Underground conduit from the street to the building for telephone trunk line
service by Pacific Telephone. Conduit to the building shall not be less than
4".
	An electrically operated landscape irrigation controller that is a complete
and functioning system.
	Underground conduit from the building to the main fire protection system,
shut off valve (PIV) for installation for security alarm wiring.
	All parking lot and landscaping lighting to include fixtures, underground
conduit, wire, distribution panel and controller.  All exterior lightning shall
be a complete and functioning system.

	FIRE PROTECTION

	An automatic fire sprinkler system per code for office buildings.  All
drops and finishes by Tenant.

	LOADING

	Two (2) grade level 10' x 10' roll-up doors.

	SITEWORK

	All work outside the building perimeter walls shall be considered site
work for the building shell and shall include grading, asphalt concrete, paving,
landscaping (hard and soft), landscape and irrigation, storm drainage, utility
service laterals, curbs, gutters, sidewalks, specialty paving (if required),
retaining walls, fencing and gates, trash enclosures, planters, parking lot and
landscape lighting and other exterior lighting per code.
	Paving sections for automobile and truck access shall be according to the
Geological Soils Report.
	All parking lot striping to include handicap signage and spaces.
	Underground site storm drainage system shall be connected to the city storm
system main.

IX.EXCLUSIONS
The following items are not included in the building shell:

	Roof screen.
	Deck penetrations for mechanical equipment.
	Framing and finishes for interior stairs.
	Electrical panels and distribution.
	Security systems.

SCHEDULE II TO WORK LETTER AGREEMENT

ACKNOWLEDGEMENT OF SUBSTANTIAL COMPLETION DATE

AND 

LEASE TERM COMMENCEMENT DATE

	
Landlord:
	
F & S HAYWARD II, LLC, a Delaware limited liability company

	
Tenant:
	
CELL GENESYS, INC., a Delaware corporation

	
Lease Dated:
	
January 7, 2002

	
Premises:
	 

This Acknowledgement of Substantial Completion Date and Lease Term
Commencement Date ("Acknowledgment") is made as of ____________ by and
between Landlord and Tenant with respect to the above captioned Lease.
Capitalized terms not defined herein shall have the meaning ascribed to such
term in the Lease referenced above.

	Landlord and Tenant hereby acknowledge that the Substantial Completion Date
the Commencement Date and the Rent Commencement Date all occurred on _______.
Subject to Tenant's rights under paragraph 3 of the Lease, the initial term of
the Lease shall expire on _____________ ("Expiration Date"). 
	The earliest date upon which Tenant may give Landlord notice of
exercise of Tenant's first option to extend the Term of the Lease is
___________, and the latest date upon which Tenant may give
Landlord notice of exercise of Tenant's first option to extend the term of this
Lease is ___________.
	If Tenant has exercised the first option to extend the Term of the Lease,
then the earliest date upon which Tenant may give Landlord notice of
exercise of Tenant's second option to extend the term of this Lease is
___________, and the latest date upon which Tenant may give
Landlord notice of exercise of Tenant's first option to extend the term of this
Lease is ___________.

IN WITNESS WHEREOF, the parties hereto have executed this Acknowledgement
as of the date first set forth hereinabove.

	
TENANT:
	
LANDLORD:

	
CELL GENESYS, INC.

a Delaware corporation

By:____________________________

Its:____________________________
	
F & S HAYWARD II, LLC

a Delaware limited liability company

By:____________________________

Its:____________________________

SCHEDULE III TO WORK LETTER AGREEMENT

[Description of Construction Drawings Per Section 1.2 of
the Work Letter Agreement]

First Plan Check Revision Drawing dated 10/19/01 by Ware and Malcomb,
Inc. for 24590 Clawiter Road, Hayward, California, #004-049.00, consisting of 58
sheets.

Exhibit C to Lease Agreement

Rules & Regulations

This exhibit, entitled "Rules & Regulations", is and shall constitute
Exhibit C to that certain Lease Agreement dated January 7, 2002 (the
"Lease"), by and between F & S HAYWARD II, LLC, a Delaware limited liability
company ("Landlord") and CELL GENESYS, INC., a Delaware corporation ('Tenant")
") for the leasing of certain premises located at ______ Clawiter Road, Hayward,
California (the "Premises").  The terms, conditions and provisions of this
Exhibit C are hereby incorporated into and are made a part of the Lease.
Any capitalized terms used herein and not otherwise defined herein shall have
the meaning ascribed to such terms as set forth in the Lease:

	No advertisement, picture or sign of any sort shall be displayed on or
outside the Premises or the Building without the prior written consent of
Landlord. Landlord shall have the right to remove any such unapproved item
without notice and at Tenant's expense.
	Tenant shall not regularly park motor vehicles in designated parking areas
after the conclusion of normal daily business activity.
	All window coverings installed by Tenant and visible from the outside of the
Building require the prior written approval of Landlord.
	Tenant shall not use, keep or permit to be used or kept any foul or noxious
gas or substance or any flammable or combustible materials on or around the
Premises, the Building or the Adjacent Park, except as permitted by law and in
accordance with the requirements of any property insurer that insures the
Insured Premises or the Common Area improvements.
	Tenant shall park motor vehicles in parking areas designated by Landlord
within the Common Areas on the Lot, except for loading and unloading. During
those periods of loading and unloading, Tenant shall not unreasonably interfere
with traffic flow within the Adjacent Park, the Project and loading and
unloading areas of other Tenants.
	Tenant shall not disturb, solicit or canvas any occupant of the Building or
Adjacent Park and shall cooperate to prevent same.
	Business machines and mechanical equipment belonging to Tenant which cause
noise or vibration that may be transmitted to the structure of the Building, to
such a degree as to be harmful to the Building or to the Adjacent Park or other
Tenants of the Adjacent Park, shall be placed and maintained by Tenant, at
Tenant's expense, on vibration eliminators or other devices sufficient to
eliminate noise or vibration.
	All goods, including material used to store goods, delivered to the Premises
of Tenant shall be immediately moved into the Premises and shall not be left in
parking or receiving areas overnight.
	Tractor-trailers which must be unhooked or parked with dolly wheels beyond
the concrete loading areas must use steel plates or wood blocks under the dolly
wheels to prevent damage to the asphalt paving surfaces. No parking or storing
of such trailers will be permitted in the auto parking areas of the Project or
the Adjacent Park or on streets adjacent thereto.
	Forklifts which operate on asphalt paving areas shall not have solid rubber
tires and shall only use tires that do not damage the asphalt.
	Tenant is responsible for the storage and removal of all trash and refuse.
All such trash and refuse shall be contained in suitable receptacles stored
behind screened enclosures at locations approved by Landlord.
	Tenant shall not store or permit the storage or placement of goods, or
merchandise or pallets or equipment of any sort outside of the Premises or the
enclosures designated for such purpose nor in or around the Building, the Lot,
the Adjacent Park or any of the Common Areas of the Project or the Adjacent Park
or the enclosures designated for such purpose. No displays or sales of
merchandise shall be allowed on the Lot.
	Tenant shall not permit any motor vehicles to be washed on any portion of
the Premises or on the Lot, nor shall Tenant permit mechanical work or
maintenance of motor vehicles to be performed on any portion of the Premises or
on the Lot.

Exhibit D To Lease Agreement

[Reserved]

Exhibit E to Lease Agreement

Hazardous Materials Disclosure Certificate

Your cooperation in this matter is appreciated.  Initially, the
information provided by you in this Hazardous Materials Disclosure Certificate
is necessary for the Landlord (identified below) to evaluate and finalize a
lease agreement with you as Tenant.  After a lease agreement is signed by you
and the Landlord (the "Lease Agreement"), on an annual basis in accordance with
the provisions of Section 29 of the signed Lease Agreement, you are to provide
an update to the information initially provided by you in this certificate. The
information contained in the initial Hazardous Materials Disclosure Certificate
and each annual certificate provided by you thereafter will be maintained in
confidentiality by Landlord subject to release and disclosure as required by (i)
any lenders and owners and their respective environmental consultants, (ii) any
prospective purchaser(s) of all or any portion of the property on which the
Premises are located, (iii) Landlord to defend itself or its lenders, partners
or representatives against any claim or demand, and (iv) any laws, rules,
regulations, orders, decrees, or ordinances, including, without limitation,
court orders or subpoenas. Any and all capitalized terms used herein, which are
not otherwise defined herein, shall have the same meaning ascribed to such term
in the signed Lease Agreement. Any questions regarding this certificate should
be directed to, and when completed, the certificate should be delivered to:

Landlord: 

F & S Hayward II , LLC

c/o Foster Enterprises

400 South El Camino Real, Suite 1400

San Mateo, California  94402-1740

Attn: Todd Foster

Phone: (650) 349-1244, extension 13

Name of Tenant:  Cell Genesys, Inc.

Mailing Address:  24570 Clawiter Road, Hayward, California 94545

Contact Person, Title and Telephone Number(s):
______________________________________

Contact Person for Hazardous Waste Materials Management and Manifests and
Telephone Number(s):
___________________________________________________________________

Address of (Prospective) Premises:  __________ Clawiter Road, Hayward,
California 94545

Length of Initial Term:  15 years commencing upon the Substantial Completion
Date plus two (2) options to extend the term for five (5) years each

	General Information:

Describe the initial proposed operations to take place in, on, or about
the Premises, including, without limitation, principal products processed,
manufactured or assembled services and activities to be provided or otherwise
conducted. Existing Tenants should describe any proposed changes to on-going
operations.

_____________________________________________________________________________
___________________________________________________________________

	Use, Storage and Disposal of Hazardous Materials

	Will any Hazardous Materials be used, generated, stored or disposed of
in, on or about the Premises?  Existing Tenants should describe any hazardous
Materials which continue to be used, generated, stored or disposed of in, on or
about the Premises.

WastesYes []No []

Chemical ProductsYes []No []

OtherYes []No []

If Yes is marked, please explain:
________________________________________________________________________________
________________________________________________________________

	If Yes is marked in Section 2.1, attach a list of any Hazardous Materials to
be used, generated, stored or disposed of in, on or about the Premises,
including the applicable hazard class and an estimate of the quantities of such
Hazardous Materials at any given time; estimated annual throughput; the proposed
location(s) and method of storage (excluding nominal amounts of ordinary
household cleaners and janitorial supplies which are not regulated by any
Environmental Laws); and the proposed location(s) and method of disposal for
each Hazardous Material, including, the estimated frequency, and the proposed
contractors or subcontractors. Existing Tenants should attach a list setting
forth the information requested above and such list should include actual data
from on-going operations and the identification of any variations in such
information from the prior year's certificate.

	Storage Tanks and Sumps

	Is any above or below ground storage of gasoline, diesel, petroleum, or
other Hazardous Materials in tanks or sumps proposed in, on or about the
Premises? Existing Tenants should describe any such actual or proposed
activities.
	Yes [   ]No [   ]
	If yes, please explain:
________________________________________________________________________________
________________________________________________________________________________
__________________________________________________________________________

<
/OL>

	Waste Management

	Has your company been issued an EPA Hazardous Waste Generator I.D.
Number? Existing Tenants should describe any additional identification numbers
issued since the previous certificate.
	Yes [   ]No [   ]
	Has your company filed a biennial or quarterly reports as a hazardous waste
generator? Existing Tenants should describe any new reports filed.
	Yes [   ]No [   ]

If yes, attach a copy of the most recent report filed.

	Wastewater Treatment and Discharge

	Will your company discharge wastewater or other wastes to:
	_________ storm drain? __________ sewer?
	_________ surface water?__________ no wastewater or other wastes
discharged.
	Existing Tenants should indicate any actual discharges. If so, describe the
nature of any proposed or actual discharge(s).
	____________________________________________________________________________
____________________________________________________________________
	Will any such wastewater or waste be treated before discharge?
	Yes [   ]No [   ]
	If yes, describe the type of treatment proposed to be conducted. Existing
Tenants should describe the actual treatment conducted.
	____________________________________________________________________________
____________________________________________________________________

	Air Discharges

	Do you plan for any air filtration systems or stacks to be used in your
company's operations in, on or _about the Premises that will discharge into
the air; and will such air emissions be monitored? Existing Tenants should
indicate whether or not there are any such air filtration systems or stacks in
use in, on or about the Premises which discharge into the air and whether such
air emissions are being monitored.
	Yes [   ]No [   ]
	If yes, please describe:
________________________________________________________________________________
________________________________________________________________
	Do you propose to operate any of the following types of equipment, or any
other equipment requiring an air emissions permit? Existing Tenants should
specify any such equipment being operated in, on or about the
Premises.

________ Spray booth(s)________ Incinerator(s)

________ Dip tank(s).________ Other (Please describe)

________ Drying oven(s)________No Equipment Requiring Air Permits

If yes, please describe:
________________________________________________________________________________
____________________________________________________

	Hazardous Materials Disclosures

	Has your company prepared or will it be required to prepare a Hazardous
Materials management plan ("Management Plan") pursuant to Fire- Department or
other governmental or regulatory agencies' requirements? Existing Tenants should
indicate whether or not a Management Plan is required and has been
prepared.

Yes [   ]No [   ]

If yes, attach a copy of the Management Plan. Existing Tenants should attach
a copy of any required updates to the Management Plan.

	Are any of the Hazardous Materials, and in particular chemicals, proposed to
be used in your operations in, on or about the Premises regulated under
Proposition 65? Existing Tenants should indicate whether or not there are any
new Hazardous Materials being so used which are regulated under Proposition
65.

Yes [   ]No [   ]

If yes, please explain:
________________________________________________________________________________
____________________________________________________

	Enforcement Actions and Complaints

	Tenants should indicate whether or not any such actions, orders or
decrees have been, or are in the With respect to Hazardous Materials or
Environmental Laws, has your company ever been subject to any agency enforcement
actions, administrative orders, or consent decrees or has your company received
requests for Information, notice or demand letters, or any other inquiries
regarding its operations? Existing process of being, undertaken or if any such
requests have been received.

Yes [   ]No [   ]

If yes, describe the actions, orders or decrees and any continuing compliance
obligations imposed as a result of these actions, orders or decrees and also
describe any requests, notices or demands, and attach a copy of all such
documents. Existing Tenants should describe and attach a copy of any new
actions, orders, decrees, requests, notices or demands not already delivered to
Landlord pursuant to the provisions of Section 29 of the signed Lease
Agreement.

_____________________________________________________________________________
_______________________________________________________

	Have there ever been, or are there now pending, any lawsuits against your
company regarding any environmental or health and safety concerns?

Yes [   ]No [   ]

If yes, describe any such lawsuits and attach copies of the complaint(s),
cross-complaint(s), pleadings and all other documents related thereto as
requested by Landlord. Existing Tenants should describe and attach a copy of any
new complaint(s), cross-complaint(s), pleadings and other related documents not
already delivered to Landlord pursuant to the provisions of Section 29 of the
signed Lease Agreement.

	Have there been any problems or complaints from adjacent Tenants, owners or
other neighbors at your company's current facility with regard to environmental
or health and safety concerns? Existing Tenants should indicate whether or not
there have been any such problems or complaints from adjacent Tenants, owners or
other neighbors at, about or near the Premises.

Yes [   ]No [   ]

If yes, please describe. Existing Tenants should describe any such problems
or complaints not already disclosed to Landlord under the provisions of the
signed Lease Agreement.

_____________________________________________________________________________
_______________________________________________________________________________<
/P>

	Permits and Licenses

	Attach copies of all Hazardous Materials permits and licenses including
a Transporter Permit number issued to your company with respect to its proposed
operations in, on or about the Premises, including, without limitation, any
wastewater discharge permits, air emissions permits, and use permits or
approvals. Existing Tenants should attach copies of any new permits and licenses
as well as any renewals of permits or licenses previously issued.

The undersigned hereby acknowledges and agrees that (A) this Hazardous
Materials Disclosure Certificate is being delivered in connection with and as
required by, Landlord in connection with the evaluation and finalization of a
Lease Agreement and will be attached thereto as an exhibit; (B) that this
Hazardous Materials Disclosure Certificate is being delivered in accordance
with, and as required by, the provisions of Section 29 of the Lease Agreement;
and (C) that Tenant shall have and retain full and-complete responsibility and
liability with respect to any of the Hazardous Materials disclosed in the HazMat
Certificate notwithstanding Landlord's[Tenant's receipt and/or approval of such
certificate. Tenant further agrees that none of the following described acts or
events shall be construed or otherwise interpreted as either (a) excusing,
diminishing or otherwise limiting Tenant from the requirement to fully and
faithfully perform its obligations under the Lease with respect to Hazardous
Materials, including, without limitation, Tenant's indemnification of the
Landlord Indemnitees and compliance with all Environmental Laws, or (b) imposing
upon Landlord, directly or indirectly, any duty or liability with respect to any
such Hazardous Materials, including, without limitation, any duty on Landlord to
investigate or otherwise verify the accuracy of the representations and
statements made therein or to ensure that Tenant is in compliance with all
Environmental Laws; (i) the delivery of such certificate to Landlord and/or
Landlord's acceptance of such certificate, (ii) Landlord's review and approval
of such certificate, (iii) Landlord's failure to obtain such certificate from
Tenant at any time, or (iv) Landlord's actual or constructive knowledge of the
types and quantities of Hazardous Materials being used, stored, generated,
disposed of or transported on or about the Premises by Tenant or Tenant's
Representatives. Notwithstanding the foregoing or anything to the contrary
contained herein, the undersigned acknowledges and agrees that Landlord and its
partners, lenders and representatives may, and will, rely upon the statements,
representations, warranties, and certifications made herein and the truthfulness
thereof in entering into the Lease Agreement and the continuance thereof
throughout the term, and any renewals thereof, of the Lease Agreement.

I _____________________________(print name), acting with full authority to
bind the (proposed) Tenant and on behalf of the (proposed) Tenant, certify,
represent and warrant that the information contained in this certificate is true
and correct.

CELL GENESYS, INC., 

a Delaware corporation:

By: ___________________________

Title: __________________________

Date: _________________________

Exhibit F to Lease Agreement

[Reserved]

Exhibit G to Lease Agreement

[Reserved]

Exhibit H to Lease Agreement

REQUIRED SURRENDER IMPROVEMENTS

	Architectural

	Interior demising walls
	Paint/wall coverings
	Floor
	Floor coverings
	Doors, door frames
	Window coverings
	Closets built into Buildings
	Ceremonial and fire exit stairs
	Bathrooms, partitions and fixtures
	Hardware for the above items 1.A-I
	Insulation
	Ceiling
	Emergency generator pads
	Transformer and mechanical pads
	Sleepers/crickets
	Elevators and related equipment
	Structural reinforcements necessitated by the installation of any tenant
improvements
	Items necessary to meet building and other codes related to handicapped
individuals

	Electrical

	Transformer
	Conduit and conductors to electrical closet
	Switch gear, circuit breakers and stepdown transformers
	Distribution conduit, conductors, junction boxes, switches, cover plates,
duplexes, fourplexes, whether for normal or emergency power (including all
mechanical requirements)
	Grounding devices and apparatus
	Night lights
	Emergency lights 
	Exit lights
	Telephone terminal backboard and cabinet
	All incandescent and florescent light fixtures (whether floor, ceiling, or
wall mounted) and lamps, except those illuminating items which may be plugged
in
	Telephone conduit, wiring, outlets and cover plates
	Computer conduit, writing, outlets and cover plates
	Fire alarm wiring
	Security system wiring
	Motor generator

	Mechanical - HVAC

	Air conditioning units for office use in the entirety of the Buildings;
provided that Tenant can remove and replace units to comply with the
foregoing.
	Hot Water Pump
	Make up air equipment
	Air compressors for HVAC
	Air dryers
	Exhaust fans and stacks
	Condensing units
	Fans (external to Buildings)
	Cooling towers
	Vanes
	Controls
	Starter motors
	Plenums
	Diffusers
	Filters
	Rigid and flexible ducting
	Dampers
	Isolators
	VAV boxes
	Piping
	Hood exhaust duct work

	Mechanical - Plumbing

	Sanitary sewer lines, piping and venting
	Hazardous chemical waste lines, piping and venting
	HVAC lines, piping and venting
	Distribution lines, connections and cover plates for process gases and
fluids such as carbon dioxide, nitrogen, oxygen, freon and distilled and
deionized water
	Vacuum piping
	Drinking fountains
	Sprinkler drops and heads

Exhibit I 

Subordination, Non-Disturbance and Attornment
Agreement

This Subordination, Non-Disturbance and Attornment Agreement (this
"Agreement) is as of the day of ______________ 20__, between
____________________________ ("Lender") and _____________________________
("Tenant").

Recitals

A.Tenant is the tenant under a certain lease (the "Lease", dated
as of ._______________, 20___, with _________________________ ("Landlord"),
of premises described in the Lease (the "Premises") as more particularly
described in Exhibit A hereto.

B.This Agreement is being entered into in connection with a certain loan
(the "Loan) which Lender has made to Landlord, and secured in part by a Deed of
Trust, assignment of leases and rents and security agreement on the Premises
(the "Deed of Trust") dated as of _________ ,20- and an assignment of
leases and rents dated as of ______________, 20__ (the "Assignment"; the Deed of
Trust, the Assignment and the other documents executed and delivered in
connection with the Loan are hereinafter collectively referred to as the "Loan
Documents").

Agreement

For mutual consideration, including the mutual covenants and agreements
set forth below, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:  

	Tenant agrees that the Lease and all terms and conditions contained therein
and all rights, options, liens and charges created thereby is and shall be
subject and subordinate in all respects to the Loan Documents and to all present
or future advances under the obligations secured thereby and all renewals,
amendments, modifications, consolidations, replacements and extensions of
secured obligations and the Loan Documents, to the full extent of all amounts
secured by the Loan Documents from time to time.
	Lender agrees that, if
Lender exercises any of its rights under the Loan Documents such that Lender
becomes the owner of the Premises, including but not limited to an entry by
Lender pursuant to the Deed of Trust, a foreclosure of the Deed of Trust, a
power of sale under the Deed of Trust or otherwise: (a) the Lease shall continue
in full force and effect as a direct lease between Lender and Tenant, and
subject to all the terms, covenants and conditions of the Lease, and (b) Lender
shall not disturb Tenant's right of quiet possession of the Premises or
interfere with Tenant's other rights under the terms of the Lease so long as
Tenant is not in default, beyond any applicable grace period, of any term,
covenant or condition of the Lease and subject to the limitations herein set
forth, shall perform the obligations on the Landlord's part to be performed
under the Lease after the date Lender acquires title to the Premises.
	Tenant agrees that, in the event of an exercise of
the power of sale or foreclosure of the Deed of Trust by Lender or the
acceptance of a deed in lieu of foreclosure by Lender or any other succession of
Lender to ownership of the Premises, subject to the rights of Tenant set fort in
Section 2 above, Tenant will attorn to and recognize Lender as its landlord
under the Lease for the remainder of the term of the Lease (including all
extension periods which have been or are hereafter exercised) upon the same
terms and conditions as are set forth in the Lease, and Tenant hereby agrees to
pay and perform all of the obligations of Tenant pursuant to the Lease.
	Tenant agrees that, in the event Lender succeeds to the interest of Landlord
under the Lease, subject to the rights of Tenant under Section 2 above, neither
Lender nor Purchaser shall be:

	liable in any way for any act, omission, neglect or default of any prior
Landlord (including, without limitation, the then defaulting Landlord), or
	subject to any claim, defense, counterclaim or offsets which Tenant may have
against any prior Landlord (including, without limitation, the then defaulting
Landlord) provided Lender performs its obligations under Section 2 above,
or
	bound by any payment of rent or additional rent which Tenant might have paid
for more than one month in advance of the due date under the Lease to any prior
Landlord (including, without limitation, the then defaulting Landlord), or
	bound by any obligation to make any payment to Tenant which was required to
be made by Landlord prior to the time Lender succeeded to any prior Landlord's
interest, or
	accountable for any monies deposited with any prior Landlord (including
security deposits), except to the extent such monies are actually received by
Lender, or
	bound by any amendment or modification of the Lease made without the written
consent of Lender.

Nothing contained herein shall prevent Lender from naming Tenant in any
foreclosure or other action or proceeding initiated in order for Lender to avail
itself of and complete any such foreclosure or other remedy, subject to the
terms and conditions of this Agreement, and if and only to the limited extent
that Lender is required to do so in order to complete any such foreclosure or
other remedy.  Notwithstanding the foregoing, except to the extent expressly
provided in Section 3 above, Tenant shall have no liability whatever to the
Lender.

	Tenant has no knowledge of any prior assignment or pledge of the rents
accruing under the Lease by Landlord, except as follows:  [insert
"none" or list prior assignments].  Tenant hereby acknowledges the
making of the Assignment from Landlord to Lender in connection with the Loan.
Tenant acknowledges that the interest of the Landlord under the Lease is to be
assigned to Lender solely as security for the purposes specified in said
assignments, and, except as expressly provided to the contrary in this
Agreement, Lender shall have no duty, liability or obligation whatsoever under
the Lease or any extension or renewal thereof, either by virtue of said
assignments or by any subsequent receipt under the Lease or collection of rents
thereunder, unless Lender shall specifically undertake such liability in
writing.
	Tenant acknowledges and agrees as follows solely for
the benefit of Lender:

	Tenant acknowledges that in connection with the financing of the Project (as
defined in the Lease), Landlord is executing and delivering to Lender the Deed
of Trust which contains an assignment of leases and rents.  Tenant hereby
expressly consents to such assignment and agrees that, subject to Section 2
hereof, such assignment shall, in all respects, be superior to any interest
Tenant has in the Lease or the Project, subject to the provisions of this
Agreement.  No amendment, alteration or waiver of any provision of the Lease
shall be binding on Lender without the prior written consent of Lender.  Tenant
shall not prepay any rents or other sums due under the Lease for more than one
(1) month in advance of the due date therefor.  Tenant acknowledges that Lender
will rely upon this instrument in connection with such financing.
	Lender, in making any disbursements to Landlord, is under no obligation or
duty to oversee or direct the application of the proceeds of such disbursements,
and such proceeds may be used by Landlord for purposes other than improvement of
the Property.
	Tenant hereby agrees to give to lender copies of all notices of Landlord
default(s) under the Lease in the same manner as, and whenever, Tenant shall
give any such notice of default to Landlord, and no such notice of default shall
be binding upon the Lender unless and until a copy of such notice shall have
been so given to Lender.
	From and after the date hereof, in the event of any act or omission by
Landlord which would give Tenant the right, either immediately or after the
lapse of time, to terminate the Lease on account of Landlord's default or to
claim a partial or total eviction, Tenant shall not exercise any such right to
terminate the Lease(i) until it has given written notice of such act or omission
to Lender, and (ii) until the same period of time as is given to Landlord under
the Lease to cure such act or omission shall have elapsed following such giving
of notice to Lender, which additional time shall not exceed ninety (90) days
following the time when Lender shall have become entitled under the Deed of
Trust to remedy the same.  In no event will Tenant exercise any such right less
than 30 days after the giving of such notice or prior to the passage of such
longer period of time as may be reasonably necessary to cure or remedy such
default, act or omission including such period of time necessary to obtain
possession of the Property by a receiver and thereafter cure such default, act
or omission, during which period of time Lender shall be permitted to cure or
remedy such default, act or omission, provided the Lender undertakes to obtain
possession of the Property and thereby to cure the default during the initial
thirty (30) day period following delivery of the written notice of default.
Notwithstanding the foregoing, Lender shall have no duty or obligation to cure
or remedy any breach or default.  It is specifically agreed that Lender will not
be liable to Tenant for cure of any such default which is personal to Landlord
and therefore not susceptible to cure by Lender.   Tenant shall accept
performance by Lender of any term, covenant, condition, agreement to be
performed by Landlord under the Lease with the same force and effect as though
performed by Landlord.
	In the event of the termination of the Lease by reason of any default
thereunder by Landlord, upon Lender's written request, given within thirty (30)
days after any such termination, Tenant within fifteen (15) days after receipt
of such request, shall execute and deliver to Lender or its designee or nominee
a new lease of the Premises for the remainder of the term of the Lease upon all
the terms, covenants and conditions of the Lease.  Neither Lender nor its
designee or nominee shall become liable under the Lease unless and until Lender
or its designee or nominee becomes, and then only with respect to periods in
which Lender or its designee or nominee remains, the owner of the Premises.
	In the event that Lender notifies Tenant of a default under the Loan
Documents and demands that Tenant pay its rent and all other sums due under the
Lease directly to Lender, Tenant shall honor such demand and pay the full amount
of its rent and all other sums actually due and payable under the Lease directly
to Lender, without offset, or to such other person or address as is otherwise
required pursuant to such notice beginning with the payment next due after such
notice of default, without inquiry as to whether a default actually exists under
the Deed of Trust, Security Documents or otherwise in connection with the Note,
and notwithstanding any contrary instructions of or demands from Landlord.

	Tenant shall send a copy of any notice or statement under the Lease to
Lender at the same time such notice or statement is sent to Landlord if such
notice or statement has a material impact on the economic terms, operating
covenants or duration of the Lease.
	Except as otherwise expressly provided in Section 37 of the Lease, Tenant
has no right or option of any nature whatsoever, whether pursuant to the Lease
or otherwise, to purchase the Premises or the Project, or any portion thereof or
any interest therein. To the extent that Tenant has had, or hereafter acquires,
any other right or option, the same is hereby acknowledged to be subject and
subordinate to the Deed of Trust and is hereby waived and released as against
Lender.
	This Agreement satisfies any condition or requirement in the Lease relating
to the granting of a nondisturbance agreement and Tenant waives any requirement
to the contrary in the Lease.
	Lender shall have no obligation nor shall they incur any liability with
respect to the erection or completion of the improvements in which the Premises
are located or for completion of the Premises or any improvements for Tenant's
use and occupancy, either at the commencement of the term of the Lease, upon any
renewal or extension thereof, or upon the addition of additional space pursuant
to any expansion rights contained in the Lease.  Lender shall have no obligation
and shall incur no liability with respect to any warranties of any nature
whatsoever, whether pursuant to the Lease or otherwise, including any warranties
respecting use, compliance with zoning regulations, Landlord's title, Landlord's
authority, habitability, fitness for purpose or use.
	Subject to Section 2, Lender shall have no obligation nor shall they incur
any liability with respect to any warranties made by Landlord of any nature
whatsoever, whether pursuant to the Lease or otherwise, including any warranties
respecting use, compliance with zoning, Landlord's title, Landlord's authority,
habitability, fitness for purpose or possession.
	In the event that Lender shall acquire title to the Premises or the Project,
Lender shall have no obligation, nor shall it incur any liability, beyond
Lender's then-equity interest, if any, in the Project, and Tenant shall look
exclusively to such equity interest of Lender, if any, for the payment and
discharge of any obligations imposed upon Lender hereunder or under the Lease or
for recovery of any judgment from Lender, and in no event shall Lender, or any
of its respective officers, directors, shareholders, agents, representatives,
servants, employees or partners ever be personally liable for such
judgment.

	Landlord, as "Landlord" under the Lease and trustor under the Deed
of Trust, acknowledges and agrees for itself and its heirs, representatives,
successors and assigns, that: (a) this Agreement does not constitute a waiver by
Lender of any of its rights under the Loan Documents, nor does this Agreement in
any way release Landlord from its obligations to comply with the terms,
provisions, conditions, covenants, agreements and clauses of the Loan Documents;
(b) the provisions of the Loan Documents remain in full force and effect and
must be complied with by Landlord; (c) Tenant is hereby authorized to pay its
rent and all other sums due under the Lease directly to Lender upon receipt of a
notice as set forth in Section 6 (d) above from Lender and that Tenant is not
obligated to inquire as to whether a default actually exists under the Deed of
Trust or the Security Documents or otherwise; (d) upon any such payment by
Tenant, the sums so paid by Tenant shall in all events be credited against the
sums payable by Tenant under the Lease; and (e) this Agreement does not
constitute a waiver by Tenant of any of its rights under the Lease as against
Landlord, nor does this Agreement in any way release Landlord from its
obligations to comply with the terms, provisions, conditions, covenants,
agreements and clauses of the Lease for the benefit of Tenant.  Landlord hereby
releases and discharges Tenant of and from any liability to Landlord resulting
from Tenant's payment to Lender in accordance with this Agreement.  Landlord
represents and warrants to Lender that a true and complete copy of the Lease has
been delivered by Landlord to Lender.
	If Tenant is a corporation, each individual executing this Agreement on
behalf of said corporation represents and warrants that s/he is duly authorized
to execute and deliver this Agreement on behalf of said corporation, in
accordance with a duly adopted resolution of the Board of Directors of said
corporation or in accordance with the by-laws of said corporation, and that this
Agreement is binding upon said corporation in accordance with its terms. If
Landlord is a partnership, each individual executing this Agreement on behalf of
said partnership represents and warrants the she is duly authorized to execute
and deliver this Agreement on behalf of said partnership in accordance with the
partnership agreement for said partnership.
	Any notice, election, communication, request or other document or demand
required or permitted under this Agreement shall be in writing and shall be
deemed delivered on the earlier to occur of (a) receipt or (b) the date of
delivery, refusal or nondelivery if deposited in a United States Postal Service
Depository, postage prepaid, for next business day delivery, or if sent via
recognized next business day commercial courier service providing for a receipt,
addressed to Tenant or Lender, as the case may be at the following
addresses:

	
If to Tenant:

__________________________

__________________________

__________________________
	
If to Lender:

_________________________

_________________________

_________________________

 

 

 

	
with a copy to

:_________________________

_________________________

_________________________

_________________________
	
with a copy to:

_________________________

_________________________

_________________________

_________________________

	The term "Lender" as used herein includes any successor or assign of the
named Lender herein, including without limitation, any co-lender at the time of
making the Loan, any purchaser at a foreclosure sale and any transferee pursuant
to a deed in lieu of foreclosure, and their successors and assigns, and the term
"Tenant" as used herein includes any successor and assign of the named Tenant
herein.
	If any provision of this Agreement is held to be invalid or unenforceable by
a court of competent jurisdiction, such provision shall be deemed modified to
the extent necessary to be enforceable, or if such modification is not
practicable such provision shall be deemed deleted from this Agreement, and the
other provisions of this Agreement shall remain in full force and effect.
	Neither this Agreement nor any of the terms hereof may be terminated,
amended, supplemented, waived or modified orally, but only by an instrument in
writing executed by the party against which enforcement of the termination,
amendment, supplement, waiver or modification is sought.
	This Agreement shall be construed in accordance with the laws of the State
of Witness the execution hereof as of the date first above written.

	
Lender:
	
Tenant:

	
By: _____________________________

Name: __________________________

Title: ___________________________
	
By: _____________________________

Name: __________________________

Title: ___________________________

The undersigned Landlord hereby consents to the foregoing Agreement and
confirms the facts stated in the foregoing Agreement.

Landlord:

By ____________________________

Name: _________________________

Title: __________________________

TABLE OF CONTENTS

Exhibit A to 

Subordination, Non-Disturbance and Attornment Agreement

[Legal Description of the Real Property]

	
1.
	
Premises; PROJECT; ADJACENT PARK.
	
1

	
1.1
	
Premises
	
1

	
1.2
	
Appurtenances
	
1

	
1.3
	
Common Areas
	
1

	
2.
	
Lease Term
	
1

	
3.
	
Option to Extend Lease Term
	
2

	
3.1
	
Grant of Option
	
2

	
3.2
	
Termination of Option
	
2

	
3.3
	
Base Rent During Extended Term
	
2

	
3.4
	
Premises As-Is During Extended Term
	
4

	
3.5
	
Options Personal
	
4

	
3.6
	
Time Of Essence
	
4

	
4.
	
Occupancy; ACKNOWLEDGEMENT of Commencement Date
	
4

	
4.1
	
No Early Occupancy
	
4

	
4.2
	
Lease Term Commencement Date
	
4

	
5.
	
Rent
	
4

	
5.1
	
Delivery of Lease; Advance Rent
	
4

	
5.2
	
Payment of Base Rent
	
5

	
5.3
	
Payment of Additional Rent
	
5

	
5.4
	
Adjustment of Base Rent
	
5

	
6.
	
COLLATERAL SECURING LEASE OBLIGATIONS.
	
5

	
6.1
	
Delivery Letter of Credit
	
5

	
6.2
	
Letter of Credit Criteria
	
6

	
6.3
	
Substitution of Cash Collateral for Letter of Credit
	
7

	
6.4
	
Commingling of Cash Collateral
	
7

	
6.5
	
No Tenant Right of Offset; Pledge to Landlord's Lender
	
7

	
6.6
	
Renewal/Non-Renewal of Letter of Credit; Draws on Letter of Credit
	
7

	
6.7
	
Replenishment of Lease Collateral
	
8

	
6.8
	
Transfer of Landlord's Interest in Lease
	
8

	
6.9
	
Use of Lease Collateral by Landlord
	
8

	
6.10
	
Return of Lease Collateral
	
9

	
6.11
	
No Trust Relationship Created
	
9

	
6.12
	
Survival
	
9

	
7.
	
CONDITION OF PREMISES; TENANT IMPROVEMENTS
	
9

	
8.
	
Additional Rent
	
9

	
8.1
	
Triple Net Rent
	
10

	
8.2
	
Operating Expenses
	
10

	
8.2.1
	
Definition of Operating Expenses
	
10

	
8.2.2
	
Capital Expenditures
	
11

	
8.2.3
	
Operating Expense Exclusions
	
11

	
8.3
	
Tax Expenses
	
12

	
8.4
	
Payment of Expenses
	
13

	
8.5
	
Annual Reconciliation
	
13

	
8.6
	
Audit
	
13

	
9.
	
Utilities and Services
	
14

	
9.1
	
Utilities
	
14

	
9.2
	
Miscellaneous
	
14

	
10.
	
Late Charges
	
14

	
11.
	
Use of Premises
	
15

	
11.1
	
Permitted Use
	
15

	
11.1.1
	
Compliance with Laws, Recorded Matters and Rules and Regulations
	
15

	
11.2
	
Prohibition on Use
	
17

	
12.
	
Alterations; and Surrender of Premises
	
17

	
12.1
	
Alterations
	
17

	
12.2
	
Surrender of Premises
	
18

	
12.3
	
Ownership by Tenant
	
20

	
12.4
	
Survival
	
20

	
13.
	
Repairs and Maintenance
	
20

	
13.1
	
Tenant's Repairs and Maintenance Obligations
	
20

	
13.2
	
Maintenance by Landlord
	
21

	
13.3
	
Tenant's Failure to Perform Repairs and Maintenance Obligations
	
21

	
14.
	
Insurance
	
22

	
14.1
	
Tenant Insurance
	
22

	
14.2
	
Insurance Policies
	
23

	
14.3
	
Additional Insureds and Coverage
	
24

	
14.4
	
Failure of Tenant to Purchase and Maintain Insurance
	
24

	
14.5
	
Waiver of Subrogation
	
24

	
14.6
	
Landlord's Insurance
	
24

	
15.
	
Limitation of Liability and Indemnity
	
25

	
15.1
	
Tenant Indemnification
	
25

	
15.2
	
Waiver of Landlord Liability
	
25

	
16.
	
Assignment and Subleasing
	
25

	
16.1
	
Prohibition
	
25

	
16.2
	
Request for Consent
	
26

	
16.3
	
Criteria for Consent
	
26

	
16.4
	
Effectiveness of Transfer and Continuing Obligations
	
27

	
16.5
	
Transfer Premium
	
28

	
16.6
	
Waiver
	
28

	
16.7
	
Affiliated Companies/ Restructuring of Business Organization
	
28

	
17.
	
Subordination
	
29

	
17.1
	
Lease Subordinate
	
29

	
17.2
	
Lease Superior at Lender's Request
	
29

	
17.3
	
Attornment; Non-Disturbance
	
29

	
17.4
	
Rights and Obligations of Successor
	
30

	
17.5
	
Execution of Subordination Agreement
	
30

	
18.
	
Right of Entry
	
30

	
19.
	
Estoppel Certificate
	
31

	
20.
	
Tenant's Default
	
31

	
21.
	
Remedies for Tenant's Default
	
32

	
21.1
	
Landlord's Rights
	
32

	
21.2
	
Damages Recoverable
	
33

	
21.3
	
Right of Redemption
	
33

	
21.4
	
Rights and Remedies Cumulative
	
34

	
22.
	
Holding Over
	
34

	
23.
	
Landlord's Default
	
34

	
24.
	
Parking
	
35

	
25.
	
Transfer of Landlord's Interest
	
35

	
26.
	
Waiver
	
35

	
27.
	
Casualty Damage
	
36

	
27.1
	
Estimate of Time to Restore
	
36

	
27.2
	
Definitions and Termination Rights
	
36

	
27.3
	
Insured Loss
	
37

	
27.4
	
Uninsured Loss
	
38

	
27.5
	
Exercise of Termination Rights
	
39

	
27.6
	
Rent Abatement
	
40

	
27.7
	
Lender Requirements
	
40

	
27.8
	
Waiver
	
41

	
27.9
	
Survival
	
41

	
27.10
	
Restoration of Common Area Improvements
	
41

	
27.11
	
Calendar of Restoration Events
	
41

	
28.
	
Condemnation
	
42

	
28.1
	
Definitions
	
42

	
28.2
	
Partial Taking
	
42

	
28.3
	
Total Taking
	
42

	
28.4
	
Substantial Taking
	
43

	
28.5
	
Temporary Taking
	
43

	
28.6
	
Award
	
43

	
29.
	
Environmental Matters/ Hazardous Materials
	
43

	
29.1
	
Hazardous Materials Disclosure Certificate
	
43

	
29.2.1
	
Hazardous Materials
	
44

	
29.2.2
	
Environmental Laws
	
44

	
29.2.3
	
Tenant's Hazardous Materials
	
44

	
29.2.4
	
Midnight Dumper
	
44

	
29.3
	
Prohibition; Environmental Laws
	
44

	
29.4
	
Tenant's Environmental Obligations
	
45

	
29.5
	
Environmental Indemnity
	
46

	
29.6
	
Survival
	
46

	
29.7
	
Landlord's Obligations
	
46

	
30.
	
Financial Statements
	
47

	
31.
	
General Provisions
	
47

	
31.1
	
Time
	
47

	
31.2
	
Successors and Assigns
	
47

	
31.3
	
Recordation
	
47

	
31.4
	
Landlord Exculpation
	
47

	
31.5
	
Severability and Governing Law
	
48

	
31.6
	
Attorneys' Fees
	
48

	
31.7
	
Entire Agreement
	
48

	
31.8
	
Warranty of Authority
	
48

	
31.9
	
Notices
	
49

	
31.10
	
Joint and Several; Covenants and Conditions
	
49

	
31.11
	
Confidentiality
	
49

	
31.12
	
Submission of Lease
	
49

	
32.
	
Signs
	
49

	
33.
	
Mortgagee Protection
	
50

	
34.
	
Warranties of Tenant
	
50

	
35.
	
Brokerage Commission
	
50

	
36.
	
Quiet Enjoyment
	
51

	
37.
	
Right of First Offer
	
51

	
1.
	
Definitions
	
1

	
2.
	
Landlord's Construction Obligation
	
4

	
2.1
	
Commence and Pursue Diligently
	
4

	
2.2
	
Copies of Construction Drawings and Permits
	
4

	
2.3
	
Conformity with Construction Drawings; Changes
	
4

	
2.4
	
Completion of Late Delivery and Certain Punchlist Items
	
4

	
2.5
	
Final Completion of Remaining Punchlist Items
	
5

	
3.
	
Reports to Tenant
	
6

	
4.
	
DELAY IN COMMENCEMENT/COMPLETION
	
6

	
5.
	
Acknowledgment of Substantial Completion
	
6

	
6.
	
Contractor's Warranty
	
6

	
7.
	
Entry for Tenant's Improvements
	
6

	
7.1
	
Early Entry Notice.
	
7

	
8.
	
Security for Tenant Improvements
	
7

	
8.1
	
Certain Definitions
	
7

	
8.2
	
Duty to Construct Minimum Amount of Required Surrender Improvements
	
7

	
8.3
	
Delivery of Security
	
7

	
8.4
	
Drawing Conditions for TI Letter of Credit
	
8

	
8.5
	
Maximum Amount of Draw
	
8

	
8.6
	
Effect of Drawing
	
8

	
8.7
	
Term of TI Letter of Credit
	
8

	
8.8
	
Landlord's Approval
	
9

	
8.9
	
Transfer of TI Letter of Credit
	
9

	
8.10
	
Substitution of Cash Collateral for Letter of Credit
	
9

	
8.11
	
Commingling of TI Cash Collateral
	
9

	
8.12
	
No Tenant Right of Offset; Pledge to Landlord's Lender
	
9

	
8.13
	
Renewal/Non-Renewal of Letter of Credit; Draws on Letter of Credit
	
9

	
8.14
	
Transfer of Landlord's Interest in Lease
	
10

	
8.15
	
Grant of Security Interest
	
10

	
8.16
	
Return of Lease Collateral
	
11

	
8.17
	
No Trust Relationship Created
	
11

	
8.18
	
Survival
	
11

	
9.
	
Work to be Performed by Tenant
	
11

	
10.
	
Tenant Construction Drawings
	
11

	
10.2
	
Construction Drawings
	
11

	
10.3
	
Commencement of Tenant Improvement Construction
	
11

	
10.4
	
Change Orders
	
12

	
11.
	
Consents/Approvals/Cooperation.
	
12

	
12.
	
Time is of the Essence
	
12

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