Document:

LEASE AGREEMENT

                                 by and between

                          The Equitable Life Assurance

                          Society of the United States

                                  ("Landlord")

                                       and

                                  Tenera, Inc.

                                   ("Tenant")

                                      dated

                                   May 3, 2000

                                       for

                               Suite Number D-150

                                   containing

                    12,786 square feet of Rentable Floor Area

                   9111 Cross Park Drive, Knoxville, Tennessee

                                 Term: 43 months

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                                TABLE OF CONTENTS

                                            Page

1.       Certain Definitions                1

2.       Lease of Premises                  1

3.       Term                               1

4.       Possession                         2

5.       Rental Payments                    2

6.       Base Rental                        2

7.       Rental Adjustment                  2

8.       Additional Rental                  2

9.       Operating Expenses                 3

10.      Tenant Taxes                       4

11.      Payments                           4

12.      Late Charges                       5

13.      Use Rules                          5

14.      Alterations                        5

15.      Repairs                            5

16.      Landlord's Right of Entry          5

17.      Insurance                          5

18.      Waiver of Subrogation              6

19.      Default                            6

20.      Waiver of Breach                   6

21.      Assignment and Subletting          7

22.      Destruction                        7

23.      Landlord's Lien                    7

24.      Services by Landlord               7

25.      Attorneys' Fees and Homestead      8

26.      Time                               8

27.      Subordination and Attornment       8

28.      Estoppel Certificates              8

29.      No Estate                          8

30.      Cumulative Rights                  8

31.      Holding Over                       8

32.      Surrender of Premises              8

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33.      Notices                            9

34.      Damage or Theft of Personal Property___________________________9

35.      Eminent Domain                     9

36.      Parties                            9

37.      Liability of Tenant                9

38.      Relocation of the Premises         9

39.      Force Majeure                      10

40.      Landlord's Liability               10

41.      Landlord's Covenant of Quiet Enjoyment________________________10

42.      Security Deposits                  10

43.      Hazardous Substances               10

44.      Submission of Lease                11

45.      Severability                       11

46.      Entire Agreement                   11

47.      Headings                           11

48.      Broker                             11

49.      Governing Law                      11

50.      Authority                          11

51.      Joint and Several Liability        11

52.      Special Stipulations               12

                                        Rules and Regulations

                                        Exhibit "A" - Legal Description

                                        Exhibit "B" - Floor Plan

                                        Exhibit "C" - Supplemental Notice

                                        Exhibit "D" - Landlord's Construction

                                        Exhibit "E" - Building Standard Services

                                        Exhibit "F" - Guaranty

                                        Exhibit "G" - Special Stipulations

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                                 LEASE AGREEMENT

     THIS LEASE  AGREEMENT  ("Lease")  is made and entered into this ____ day of
_______________, 2000 by and between Landlord and Tenant.

                              W I T N E S S E T H:

      1.  Certain Definitions.  For purposes of this Lease, the  following terms
shall have the meanings hereinafter ascribed thereto:

          (a)Landlord: The Equitable Life Assurance Society of the United States

         (bi)Landlord's Correspondence Address:
             Equitable Life Assurance Society of the US
             3424 Peachtree Road, Suite 800
             Atlanta, GA 30326-1102

        (bii)Landlord's Address for Rent::
             3751465535 ELAS AAF
             General Account
             Cross Park II/CB Richard Ellis
             Atlanta, GA 30384-2081

          (c)Tenant: Tenera, Inc.
             PO Box 402081

         (di)Tenant's Correspondence Address:
             One Market, Spear Tower
             Suite 1850
             San Francisco, CA 94105-1018

        (dii)Tenant's Billing Address:
             Same

          (e)Building Address:
             9111 Cross Park Drive
             Knoxville, TN  37923

          (f)Suite Number: D-150

          (g)Rentable Floor Area of Demised Premises:
             12,786 square feet 13.03%

          (h)Rentable Floor Area of Building:
             ________________ square feet.

          (i)Lease Term: 43  months.

          (j)Base Rental Rate: 6/1/00-12/31/01 $12.50 RSF
             1/1/02-12/31/02  $12.75 RSF
             1/1/03-12/31/03  $13.00 RSF

          (k)Rental Commencement Date: June 1, 2000

          (l)Tenant Improvement Allowance: $31,965.00

          (m)Security Deposits:
              (i)       $13,318.75 [Article 42(a)].
             (ii)       $13,318.75 [Article 42(b)].

          (n)Broker(s): NAI Collins, Sharp & Koella, Inc

          (o)

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      2.Lease of Premises.  Landlord, in  consideration  of  the  covenants  and
agreements  to  be  performed  by  Tenant,  and  upon  the  terms and conditions
hereinafter  stated,  does  hereby rent and lease unto  Tenant,  and Tenant does
hereby rent and lease from Landlord,  certain premises (the "Demised  Premises")
in the building  (the  "Building")  located on that  certain  tract of land (the
"Land") more  particularly  described on Exhibit "A" attached hereto and by this
reference  made a part  hereof,  which  Demised  Premises are outlined in red or
cross-hatched  on the floor  plan  attached  hereto as  Exhibit  "B" and by this
reference made a part hereof,  with no easement for light,  view or air included
in the Demised Premises or being granted  hereunder.  The "Project" is comprised
of the Building,  the Land, the  Building's  parking  facilities,  any walkways,
covered  walkways,  tunnels  or other  means of access to the  Building  and the
Building's  parking  facilities,  all common  areas,  including  any  lobbies or
plazas, and any other improvements or landscaping on the Land.

      3.Term.  The term  of  this Lease (the "Lease Term") shall commence on the
date  first   hereinabove  set  forth   (the  "Term  Commencement  Date"),  and,
unless sooner terminated as provided in this Lease,  shall end on the expiration
of the period  designated in Article 1(i) above,  which period shall commence on
the Rental Commencement Date, unless the Rental Commencement Date shall be other
than the first  day of a  calendar  month,  in which  event  such  period  shall
commence on the first day of the calendar month following the month in which the
Rental  Commencement Date occurs.  Promptly after the Rental  Commencement Date,
Landlord shall send to Tenant a  Supplemental  Notice in the form of Exhibit "C"
attached  hereto by this reference made a part hereof and executed by Landlord's
authorized  agent,   specifying  the  Rental  Commencement  Date,  the  date  of
expiration of the Lease Term in  accordance  with Article 1(i) above and certain
other  matters as therein set forth.  The date set forth in said Notice shall be
determinative of the Rental Commencement Date of this Lease.

      4.Possession.   The obligations of Landlord and Tenant with respect to the
initial  leasehold   improvements   to  the  Demised   Premises  are  set  forth
in Exhibit "D" attached hereto and by this reference made a part hereof.  Taking
of  possession  by  Tenant  shall  be  deemed  conclusively  to  establish  that
Landlord's  construction  obligations  with respect to the Demised Premises have
been  completed  in  accordance  with the plans and  specifications  approved by
Landlord and Tenant and that the Demised  Premises,  to the extent of Landlord's
construction  obligations  with respect  thereto,  are in good and  satisfactory
condition.

      5.Rental Payments.

_______________________(a)       Commencing on the Rental Commencement Date, and
continuing thereafter throughout the Lease Term, Tenant hereby agrees to pay all
Rent due and payable  under this Lease.  As used in this Lease,  the term "Rent"
shall mean the Base Rental,  Rental  Adjustment,  Tenant's  Forecast  Additional
Rental, Tenant's Additional Rental, and any other amounts that Tenant assumes or
agrees to pay under the  provisions  of this  Lease  that are owed to  Landlord,
including,  without  limitation,  any and all other  sums that may become due by
reason of any default of Tenant or failure on  Tenant's  part to comply with the
agreements,  terms,  covenants  and  conditions of this Lease to be performed by
Tenant. Base Rental, together with Tenant's Forecast Additional Rental, shall be
due and  payable  in twelve  (12)  equal  installments  on the first day of each
calendar  month,  commencing  on the  Rental  Commencement  Date and  continuing
thereafter  throughout  the Lease Term and any  extensions or renewals  thereof.
Tenant  hereby  agrees to pay such Rent to  Landlord  at  Landlord's  address as
provided  herein (or such other  address as may be  designated  by Landlord from
time to time)  monthly in advance.  Tenant  shall pay all Rent and other sums of
money as shall  become  due from and  payable by Tenant to  Landlord  under this
Lease at the times and in the manner  provided  in this Lease,  without  demand,
set-off or counterclaim.

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__________________________(b)  If the Rental Commencement Date is other than the
first day of a calendar  month or if this Lease  terminates  on a day other than
the last day of a  calendar  month,  then the  installments  of Base  Rental and
Tenant's  Forecast  Additional Rental for such month or months shall be prorated
on a daily basis and the  installment or  installments so prorated shall be paid
in advance. Also, if the Rental Commencement Date occurs on a day other than the
first day of a calendar year, or if this Lease expires or is terminated on a day
other than the last day of a calendar year,  Tenant's Additional Rental shall be
prorated  for such  commencement  or  termination  year,  as the case may be, by
multiplying  such  Tenant's  Additional  Rental by a fraction,  the numerator of
which  shall be the  number of days of the Lease Term (from and after the Rental
Commencement Date) during the commencement or expiration or termination year, as
the case may be, and the  denominator of which shall be 365, and the calculation
described  in  Article  8 hereof  shall be made as soon as  possible  after  the
expiration or  termination  of this Lease,  Landlord and Tenant hereby  agreeing
that the provisions relating to said calculation shall survive the expiration or
termination of this Lease.

     6.Base Rental.  From and after the Rental  Commencement  Date, Tenant shall
pay to Landlord a base annual rental  (herein called "Base Rental") equal to the
Base  Rental Rate set forth in Article  1(j) above  multiplied  by the  Rentable
Floor Area of the Demised Premises as set forth in Article 1(g) above.

     7.Rental Adjustment.

__________________________(a)Tenant shall pay to Landlord as additional rental a
rental adjustment (the "Rental  Adjustment") which shall be determined as of the
first  anniversary  of the  Rental  Commencement  Date and as of each  January 1
thereafter during the Lease Term in the manner  hereinafter  provided (each such
date being  hereinafter in this Article 7 called an "Adjustment  Date", and each
period of time from any given  Adjustment  Date  through the day before the next
succeeding  Adjustment  Date being herein called an "Adjustment  Period").  Each
such Rental  Adjustment  shall be payable in monthly  installments in advance on
the first day of every such  calendar  month  during the  Adjustment  Period for
which such Rental  Adjustment was determined.  A prorated  monthly  installment,
based on the number of days in the partial month, shall be paid for any fraction
of a month if the Rental Commencement Date falls on any day other than the first
day of a calendar  month,  or if the Lease Term is  terminated or expires on any
other day than the last day of a calendar  month.  Landlord shall use reasonable
efforts  to notify  Tenant  in  writing  of the  monthly  amount  of the  Rental
Adjustment for each  Adjustment  Period at least ten (10) days prior to the date
on which the first installment of such Rental Adjustment is due and payable,  or
as soon  thereafter as is  practicable.  Failure by Landlord to notify Tenant of
the monthly  amount of such Rental  Adjustment  shall not  prejudice  Landlord's
right to collect the full amount of such Rental  Adjustment,  nor shall Landlord
be deemed to have  forfeited  or  surrendered  its rights to collect such Rental
Adjustment  which may have  become due  pursuant  to this  Article 7, and Tenant
agrees to pay upon demand all accrued but unpaid Rental Adjustment.

_________________________(b)For each Adjustment Period, each monthly installment
of the Rental Adjustment shall be an amount equal to one-twelfth (1/12th) of the
product of: (i) the annual Base Rental set forth in Article 6 hereof, multiplied
by (ii) the  "percentage  increase"  (as  hereinafter  defined),  if any, in the
"Index" (as hereinafter defined), as such percentage increase is determined with
respect to the Adjustment Date beginning such Adjustment Period.

__________________________(c)   For purposes of Articles 7(a) and (b) above, the
"percentage  increase," if any, in the Index for each Adjustment Date shall mean
and equal the quotient  (expressed as a decimal)  determined by dividing (i) the
difference obtained by subtracting the Index for the calendar month in which the
Rent  Commencement  Date falls from the Index for the calendar  month of October
immediately  preceding  the  Adjustment  Date in question [if the  difference so
obtained is negative,  then this factor (i) shall be deemed to be zero], by (ii)
the Index for the calendar month in which the Rental Commencement Date falls.

__________________________(d)  The term "Index" as used in Articles 7(b) and (c)
above shall mean the Consumer  Price Index for All Urban  Consumers,  U.S.  City
Average,  All Items (1982-84 = 100), published by the Bureau of Labor Statistics
of the United  States  Department  of Labor.  If the Bureau of Labor  Statistics
should  discontinue  the  publication  of the Index,  or  publish  the same less
frequently,  or alter  the same in some  manner,  then  Landlord  shall  adopt a
substitute Index or substitute  procedure which reasonably reflects and monitors
consumer prices.

_______________________(e)Nothing contained in this Article 7 shall be construed
at any  time so to  reduce  the  monthly  installments  of Base  Rental  payable
hereunder below the amount set forth in Article 6 of this Lease. Notwithstanding
anything  contained  in this Lease to the  contrary,  it is agreed  that (i) the
Rental  Adjustment  for any given  Adjustment  Period shall not be less than the
Rental  Adjustment for the immediately  preceding  Adjustment  Period,  and (ii)
Tenant's  payments  pursuant to this  Article 7 shall not be deemed  payments of
rent as that term is construed  relative to governmental wage and price controls
or analogous  governmental  actions  affecting the amount of rent which Landlord
may charge Tenant.

<PAGE>

      8._________Additional Rental.

________________________(a)       For purposes of this Lease, "Tenant's Forecast
Additional  Rental"  shall  mean  Landlord's  reasonable  estimate  of  Tenant's
Additional  Rental for each  calendar year or portion  thereof  during the Lease
Term. If at any time it appears to Landlord that Tenant's  Additional Rental for
the  current  calendar  year then at hand will  vary from  Landlord's  estimate,
Landlord shall have the right to revise,  by notice to Tenant,  its estimate for
such year, and  subsequent  payments by Tenant for such year shall be based upon
such revised estimate of Tenant's Additional Rental.  Failure to make a revision
contemplated  by  the  immediately   preceding   sentence  shall  not  prejudice
Landlord's right to collect the full amount of Tenant's Additional Rental. Prior
to the first day of January  immediately  following  the  expiration of the Base
Year,  and  thereafter  prior to the  beginning of each calendar year during the
Lease Term, including any extensions or renewals thereof, Landlord shall present
to Tenant a statement of Tenant's  Forecast  Additional Rental for such calendar
year;  provided,  however,  that if such  statement  is not  given  prior to the
beginning of any calendar year as aforesaid, Tenant shall continue to pay during
the next ensuing  calendar year on the basis of the amount of Tenant's  Forecast
Additional  Rental  payable  during the calendar year just ended until the month
after such statement is delivered to Tenant.

__________________________(b)   For purposes of this Lease, "Tenant's Additional
Rental" shall mean for each calendar year (or portion  thereof) during the Lease
Term the excess of (x) the Operating  Expense Amount (defined below)  multiplied
by the number of square  feet of Rentable  Floor Area of the  Demised  Premises,
over (y) the Base Operating Expenses (defined below) multiplied by the number of
square feet of  Rentable  Floor Area of the Demised  Premises.  As used  herein,
"Operating  Expense  Amount"  shall mean the amount of  Operating  Expenses  (as
defined below) for such calendar year divided by the greater of (i)  ninety-five
percent  (95%) of the  number  of  square  feet of  Rentable  Floor  Area of the
Building,  or (ii) the total  number  of  square  feet of  Rentable  Floor  Area
occupied in the Building for such calendar year on an average  annualized basis;
provided,  however,  if the amount is calculated  under (i) above, the Operating
Expenses  actually incurred with respect to such calendar year shall be adjusted
to reflect the amount of Operating  Expenses  which would have been  incurred if
the Building were  ninety-five  percent (95%) occupied  throughout such calendar
year.  As used  herein,  the  term  "Base  Operating  Expenses"  shall  mean the
Operating Expenses paid or incurred by Landlord in the Base Year (as hereinafter
defined) as if the Building was  ninety-five  percent (95%) occupied  throughout
the Base Year, divided by ninety-five percent (95%) of the number of square feet
of Rentable  Floor Area of the  Building.  If the Building  was not  ninety-five
percent  (95%)  occupied  throughout  the Base  Year,  then  the Base  Operating
Expenses  shall be an amount which fairly  reflects what the Operating  Expenses
would have been in the Base Year had the Building been ninety-five percent (95%)
occupied  throughout  the Base Year, as determined by Landlord in its reasonable
opinion. As used herein, "Base Year" shall mean calendar year 2000 [the calendar
year in which the Rental Commencement Date occurs, if no year is inserted].

_________________________(c)Within one hundred fifty (150) days after the end of
the  calendar  year in which the  Rental  Commencement  Date  occurs and of each
calendar  year  thereafter  during  the Lease  Term,  or as soon  thereafter  as
practicable,  Landlord  shall provide  Tenant a statement  showing the Operating
Expenses for said calendar year, as prepared by an authorized  representative of
Landlord,  and a  statement  prepared by Landlord  comparing  Tenant's  Forecast
Additional  Rental  with  Tenant's  Additional  Rental.  In the  event  Tenant's
Forecast  Additional Rental exceeds Tenant's Additional Rental for said calendar
year,  Landlord shall credit such amount against the Forecast  Additional Rental
next due  hereunder  or, if the Lease  Term has  expired  or is about to expire,
refund  such  excess to Tenant if Tenant is not in default  under this Lease (in
the instance of a default,  such excess shall be held as additional security for
Tenant's  performance,  may be applied by Landlord to cure any such default, and
shall not be refunded  until any such  default is cured).  In the event that the
Tenant's  Additional Rental exceeds Tenant's Forecast Additional Rental for said
calendar year, Tenant shall pay Landlord,  within thirty (30) days of receipt of
the statement, an amount equal to such difference.  The provisions of this Lease
concerning  the  payment  of  Tenant's   Additional  Rental  shall  survive  the
expiration or earlier termination of this Lease.

__________________________(d)     Landlord's books and records pertaining to the
calculation  of Operating  Expenses for any calendar  year within the Lease Term
may be audited  by Tenant or its  representatives  at  Landlord's  office  where
Operating  Expense  records are kept,  at Tenant's  expense,  at any time within
ninety (90) days after  Landlord's  annual  statement is delivered to Tenant for
such  calendar  year;  provided  that Tenant  shall give  Landlord not less than
thirty  (30)  days'  prior  written  notice  of any such  audit.  If  Landlord's
calculations  of Tenant's  Additional  Rental for the audited  calendar year was
incorrect,  then Tenant shall be entitled to a prompt refund of any  overpayment
or Tenant shall promptly pay to Landlord the amount of any underpayment,  as the
case may be.

<PAGE>

      9.________Operating Expenses.

_________________________(a)For the purposes of this Lease, "Operating Expenses"
shall mean all expenses,  costs and disbursements (but not specific costs billed
to specific  tenants of the  Building) of every kind and nature,  computed on an
accrual basis, relating to or incurred or paid in connection with the ownership,
management,  operation, repair and maintenance of the Project, including but not
limited to, the following:

_____________________________ (1) wages, salaries and other costs of all on-site
and  off-site  employees  engaged  either  full or part  time in the  operation,
management,  maintenance  or access  control of the  Project,  including  taxes,
insurance and benefits relating to such employees, allocated based upon the time
such employees are engaged directly in providing such services;

_____________________________ (2) the cost of all supplies, tools, equipment and
materials used in the operation,  management,  maintenance and access control of
the Project;

_____________________________  (3) the cost of all  utilities  for the  Project,
including but not limited to the cost of electricity, gas, water, sewer services
and power for heating, lighting, air conditioning and ventilating;

_____________________________  (4)  the  cost  of all  maintenance  and  service
agreements for the Project and the equipment therein, including, but not limited
to, security service, garage operators,  window cleaning,  elevator maintenance,
HVAC  maintenance,  janitorial  service,  landscaping  maintenance and customary
landscaping replacement;

_____________________________  (5) the cost of inspections,  repairs and general
maintenance of the Project;

_____________________________   (6)   amortization   (together  with  reasonable
financing charges,  whether or not actually incurred) of the cost of acquisition
and/or installation of capital investment items (including security  equipment),
amortized  over their  respective  useful  lives,  which are  installed  for the
purpose  of  reducing  operating  expenses,  promoting  safety,  complying  with
governmental requirements, or maintaining the nature of the Project;

_____________________________  (7) the cost of casualty,  rental loss, liability
and other insurance  applicable to the Project and Landlord's  personal property
used in connection therewith;

_____________________________  (8) the cost of trash and garbage removal, vermin
extermination, and snow, ice and debris removal;

_____________________________  (9) the cost of  legal  and  accounting  services
incurred by Landlord in connection with the management,  maintenance,  operation
and  repair  of  the  Project,  excluding  the  owner's  or  Landlord's  general
accounting,  such as  partnership  statements  and tax  returns,  and  excluding
services described in Article 9(b)(14) below;

<PAGE>

_____________________________  (10)  all  taxes,  assessments  and  governmental
charges,  whether or not directly  paid by  Landlord,  whether  federal,  state,
county or  municipal  and whether  they be by taxing  districts  or  authorities
presently taxing the Project or by others subsequently created or otherwise, and
any other taxes and  assessments  attributable  to the Project or its  operation
(and the costs of monitoring and contesting any of the same), including business
license taxes and fees (all of the foregoing are herein  sometimes  collectively
referred to as "Taxes"),  excluding,  however,  taxes and assessments imposed on
the personal property of the tenants of the Project,  federal and state taxes on
income, death taxes, franchise taxes, and any taxes (other than business license
taxes and fees)  imposed or measured  on or by the income of  Landlord  from the
operation  of the  Project;  provided,  however,  that if at any time during the
Lease Term,  the present  method of taxation or  assessment  shall be so changed
that the whole or any part of the taxes,  assessments,  levies,  impositions  or
charges  now levied,  assessed  or imposed on real  estate and the  improvements
thereon shall be discontinued and as a substitute therefor,  or in lieu of or in
addition thereto, taxes,  assessments,  levies,  impositions or charges shall be
levied,  assessed  and/or  imposed  wholly  or  partially  as a  capita  levy or
otherwise on the rents received from the Project or the rents reserved herein or
any part thereof, then such substitute or additional taxes, assessments, levies,
impositions or charges, to the extent so levied,  assessed or imposed,  shall be
deemed to be  included  within the  Operating  Expenses  to the extent that such
substitute  or  additional  tax would be  payable if the  Project  were the only
property of the Landlord  subject to such tax; and it is agreed that Tenant will
be responsible for ad valorem taxes on its personal property and on the value of
the leasehold  improvements in the Demised  Premises to the extent that the same
exceed building standard allowances,  if said taxes are based upon an assessment
which  includes the cost of such  leasehold  improvements  in excess of building
standard  allowances  (and if the taxing  authorities do not  separately  assess
Tenant's leasehold improvements,  Landlord may make an appropriate allocation of
the ad valorem taxes allocated to the Project to give effect to this sentence);

_____________________________  (11) the cost of operating the management  office
for the  Project,  including  cost of office  supplies,  telephone  expenses and
non-capital  investment  equipment and  amortization  (together with  reasonable
financing charges) of the cost of capital investment equipment; and

_____________________________  (12) Tenant acknowledges that the Project is part
of a development,  which will or may include other improvements and that certain
of the costs of management,  operation and maintenance of the development shall,
from  time  to  time,  be  allocated  among  and  shared  by two or  more of the
improvements in the development  (including the Project).  The  determination of
such  costs  and  their  allocation  shall be made by  Landlord  in its sole but
reasonable discretion. In addition, Landlord reserves the right to recompute and
adjust the base year of any  component of Operating  Expenses at any time during
the Lease Term as a result of any reallocation within the Project.  Accordingly,
the term  "Operating  Expenses" as used in this Lease shall,  from time to time,
include some costs, expenses and taxes enumerated above which were incurred with
respect to other improvements in the development but which were allocated to and
shared by the Project in  accordance  with the  foregoing.  Notwithstanding  the
foregoing,  Tenant  understands and agrees that its rights to use other portions
of the  development  of which the Project is a part are those  available  to the
general public and that this Lease does not grant to Tenant additional rights of
use.

<PAGE>

__________________________(b)  For purposes of this Lease,  and  notwithstanding
anything  in any  other  provision  of this  Lease to the  contrary,  "Operating
Expenses" shall not include the following:

_____________________________  (1) the  cost  of any  special  work  or  service
performed for any tenant (including Tenant) at such tenant's cost;

_____________________________   (2)  the  cost  of  installing,   operating  and
maintaining  any  specialty  service,  such  as  an  observatory,   broadcasting
facility,  luncheon  club,  restaurant,  cafeteria,  retail store,  sundry shop,
newsstand,  or concession,  but only to the extent such costs exceed those which
would  normally be expected to be incurred  had such space been  general  office
space;

_____________________________   (3)  the   cost   of   correcting   defects   in
construction;

_____________________________  (4) compensation  paid to officers and executives
of Landlord (but it is understood  that the on-site  building  manager and other
on-site  employees below the grade of building manager may carry a title such as
vice president and the salaries and related benefits of these officers/employees
of Landlord would be allowable Operating Expenses under Article 9[a][ 1] above);

_____________________________  (5) the cost of any items for which  Landlord  is
reimbursed by insurance,  condemnation or otherwise, except for costs reimbursed
pursuant to provisions similar to Articles 8 and 9 hereof;

_____________________________   (6)  the   cost  of  any   additions,   changes,
replacements  and  other  items  which  are made in order to  prepare  for a new
tenant's occupancy;

_____________________________ (7) the cost of repairs incurred by reason of fire
or other casualty;

_____________________________  (8) insurance premiums to the extent Landlord may
be directly  reimbursed  therefor,  except for premiums  reimbursed  pursuant to
provisions similar to Articles 8 and 9 hereof;

_____________________________  (9) interest on debt or amortization  payments on
any mortgage or deed to secure debt (except to the extent specifically permitted
by Article 9[a]) and rental under any ground lease or other underlying lease;

_____________________________  (10) any real  estate  brokerage  commissions  or
other costs incurred in procuring tenants or any fee in lieu of such commission;

_____________________________   (11)  any  advertising   expenses   incurred  in
connection with the marketing of any rentable space;

(12) rental  payments for base  building  equipment  such as HVAC  equipment and
elevators;

_____________________________ (13) any expenses for repairs or maintenance which
are covered by warranties and service contracts,  to the extent such maintenance
and repairs are made at no cost to Landlord; and

_____________________________   (14)   legal   expenses   arising   out  of  the
construction  of  the  improvements  on  the  Land  or  the  enforcement  of the
provisions  of any  lease  affecting  the Land or  Building,  including  without
limitation this Lease.

<PAGE>

     10.Tenant  Taxes.  Tenant shall pay promptly when due all taxes directly or
indirectly imposed or assessed upon Tenant's gross sales,  business  operations,
machinery,  equipment,  trade  fixtures and other  personal  property or assets,
whether such taxes are assessed against Tenant, Landlord or the Building. In the
event that such taxes are imposed or assessed  against Landlord or the Building,
Landlord shall furnish Tenant with all applicable tax bills,  public charges and
other  assessments or impositions and Tenant shall forthwith pay the same either
directly to the taxing authority or, at Landlord's option, to Landlord.

     11.Payments. All payments of Rent and other payments to be made to Landlord
shall be made on a timely  basis and shall be payable to Landlord or as Landlord
may  otherwise  designate.  All such  payments  shall be mailed or  delivered to
Landlord's  Address  designated  in Article 1(b) above or at such other place as
Landlord may  designate  from time to time in writing.  If mailed,  all payments
shall be mailed in  sufficient  time and with  adequate  postage  thereon  to be
received in  Landlord's  account by no later than the due date for such payment.
Tenant agrees to pay to Landlord Fifty Dollars ($50.00) for each check presented
to Landlord in payment of any obligation of Tenant which is not paid by the bank
on which it is drawn,  together  with  interest  from and after the due date for
such payment at the rate of ten percent (10%) per annum on the amount due.

     12.Late  Charges.  Any Rent or other amounts payable to Landlord under this
Lease,  if not paid by the fifth day of the month for which such Rent is due, or
by the due date  specified on any invoices  from  Landlord for any other amounts
payable  hereunder,  shall incur a late  charge of Fifty  Dollars  ($50.00)  for
Landlord's  administrative  expense in processing such delinquent payment and in
addition  thereto shall bear interest at the rate of ten percent (10%) per annum
from and after the due date for such  payment.  Notwithstanding  anything to the
contrary contained in this Lease, in no event shall the rate of interest payable
on any amount due under this  Lease  exceed the legal  limits for such  interest
enforceable under applicable law.

     13.Use Rules.  The Demised  Premises shall be used for  executive,  general
administrative and office space purposes and no other purposes and in accordance
with all applicable  laws,  ordinances,  rules and  regulations of  governmental
authorities  and the  Rules  and  Regulations  attached  hereto  and made a part
hereof.  Tenant  covenants and agrees that it will, at its expense,  comply with
all laws, ordinances, orders, directions, requirements, rules and regulations of
all governmental  authorities  (including  federal,  state, county and municipal
authorities),  now in force or which  may  hereafter  be in force,  which  shall
impose any duty upon  Landlord or Tenant with  respect to the use,  occupancy or
alteration of the Demised  Premises,  and of all insurance bodies  applicable to
the  Demised  Premises  or to the  Tenant's  use or  occupancy  thereof.  Tenant
covenants  and agrees to abide by the Rules and  Regulations  in all respects as
now set forth and  attached  hereto or as  hereafter  promulgated  by  Landlord.
Landlord  shall have the right at all times during the Lease Term to publish and
promulgate and thereafter  enforce such rules and  regulations or changes in the
existing Rules and  Regulations as it may reasonably  deem necessary in its sole
discretion to protect the tenantability,  safety,  operation, and welfare of the
Demised Premises and the Project.

     14.Alterations.  Except for any initial improvement of the Demised Premises
pursuant to Exhibit  "D",  which shall be  governed  by the  provisions  of said
Exhibit "D", Tenant shall not make, suffer or permit to be made any alterations,
additions or improvements to or of the Demised Premises or any part thereof,  or
attach any fixtures or equipment  thereto,  without first  obtaining  Landlord's
written consent.  With respect to any alteration,  addition or improvement which
does not  affect  the  structure  of the  Building,  does not  affect any of the
Building's systems (e.g., mechanical, electrical or plumbing), does not diminish
the  capacity  of such  Building  systems  available  to other  portions  of the
Building, is not visible from the common areas or exterior of the Building,  and
is  in  full  compliance  with  all  laws,   orders,   ordinances,   directions,
requirements, rules and regulations of all governmental authorities,  Landlord's
consent shall not be unreasonably withheld.  Any such alterations,  additions or
improvements to the Demised  Premises  consented to by Landlord shall be made by
Landlord or under  Landlord's  supervision for Tenant's account and Tenant shall
reimburse  Landlord for all costs  thereof  (including  a reasonable  charge for
Landlord's  overhead),  as  Rent,  within  ten  (10)  days  after  receipt  of a
statement.  All  such  alterations,  additions  and  improvements  shall  become
Landlord's  property at the expiration or earlier  termination of the Lease Term
and shall remain on the Demised Premises  without  compensation to Tenant unless
Landlord  elects by notice to Tenant to have  Tenant  remove  such  alterations,
additions  and  improvements,  in  which  event,  notwithstanding  any  contrary
provisions respecting such alterations,  additions and improvements contained in
Article 32 hereof,  Tenant shall promptly restore, at its sole cost and expense,
the  Demised  Premises  to its  condition  prior  to the  installation  of  such
alterations, additions and improvements, normal wear and tear excepted.

<PAGE>

     15.Repairs.

__________________________(a)  Landlord shall maintain in good order and repair,
subject to normal wear and tear and subject to casualty  and  condemnation,  the
Building  (excluding  the Demised  Premises  and other  portions of the Building
leased to other tenants), the Building parking facilities,  the public areas and
the landscaped areas.  Notwithstanding the foregoing obligation, the cost of any
repairs or maintenance to the foregoing  necessitated by the intentional acts or
negligence of Tenant or its agents, contractors, employees, invitees, licensees,
tenants or  assigns,  shall be borne  solely by Tenant and shall be deemed  Rent
hereunder and shall be  reimbursed  by Tenant to Landlord upon demand.  Landlord
shall  not be  required  to make any  repairs  or  improvements  to the  Demised
Premises except structural repairs necessary for safety and tenant ability.

__________________________(b) Tenant covenants and agrees that it will take good
care of the Demised  Premises and all  alterations,  additions and  improvements
thereto and will keep and maintain the same in good condition and repair, except
for normal wear and tear. Tenant shall at once report,  in writing,  to Landlord
any  defective or dangerous  condition  known to Tenant.  To the fullest  extent
permitted by law, Tenant hereby waives all rights to make repairs at the expense
of Landlord or in lieu thereof to vacate the Demised Premises as may be provided
by any law,  statute or ordinance  now or  hereafter in effect.  Landlord has no
obligation and has made no promise to alter, remodel,  improve, repair, decorate
or paint the Demised  Premises or any part thereof,  except as specifically  and
expressly herein set forth.

     16.Landlord's  Right of Entry.  Landlord shall retain duplicate keys to all
doors of the  Demised  Premises  and  Landlord  and its  agents,  employees  and
independent  contractors  shall have the right to enter the Demised  Premises at
reasonable  hours to inspect  and  examine  same,  to make  repairs,  additions,
alterations  and  improvements,  to exhibit the Demised  Premises to mortgagees,
prospective  mortgagees,  purchasers  or  tenants,  and to inspect  the  Demised
Premises to ascertain  that Tenant is complying  with all of its  covenants  and
obligations  hereunder,  all  without  being  liable  to  Tenant  in any  manner
whatsoever for any damages arising therefrom;  provided,  however, that Landlord
shall, except in case of emergency,  afford Tenant such prior notification of an
entry into the Demised  Premises as shall be  reasonably  practicable  under the
circumstances.  Landlord  shall be allowed to take into and  through the Demised
Premises  any and all  materials  that may be  required  to make  such  repairs,
additions,  alterations or improvements.  During such time as such work is being
carried on, in or about the Demised Premises, the Rent provided herein shall not
abate,  and Tenant  waives  any claim or cause of action  against  Landlord  for
damages  by reason of  interruption  of  Tenant's  business  or loss of  profits
therefrom because of the prosecution of any such work or any part thereof.

     17.Insurance.  Tenant shall procure at its expense and maintain  throughout
the Lease Term a policy or policies of commercial property insurance,  issued on
an "all  risks"  basis  insuring  the full  replacement  cost of its  furniture,
equipment,  supplies and other property owned,  leased,  held or possessed by it
and  contained in the Demised  Premises,  together  with the excess value of the
improvements to the Demised Premises over the Tenant Improvement Allowance (with
a replacement  cost  endorsement  sufficient  to prevent  Tenant from becoming a
co-insurer), and workmen's compensation insurance as required by applicable law.
Tenant shall also procure at its expense and maintain  throughout the Lease Term
a policy or policies of commercial  general liability  insurance,  including but
not limited to,  insurance  assumed or contractual  liability  under this Lease,
written on an  occurrence  basis and  insuring  Tenant,  Landlord  and any other
person  designated  by Landlord,  against any and all liability for injury to or
death of a person or persons and for damage to property occasioned by or arising
out of any construction work being done on the Demised Premises,  or arising out
of the  condition,  use or  occupancy  of the  Demised  Premises,  or in any way
occasioned  by  or  arising  out  of  the  activities  of  Tenant,  its  agents,
contractors,  employees,  guests or licensees in the Demised Premises,  or other
portions of the Building or the  Project,  the limits of such policy or policies
to be in combined  single limits for both damage to property and personal injury
and in amounts  not less than Three  Million  Dollars  ($3,000,000.00)  for each
occurrence. Such insurance shall, in addition, extend to any liability of Tenant
arising out of the indemnities  provided for in this Lease. Tenant shall require
any contractor performing work on the Demised Premises to carry and maintain, at
no  expense  to  Landlord,   non-deductible   comprehensive   general  liability
insurance,  including  but not  limited  to,  contractor's  liability  coverage,
contractual  liability  coverage,  completed  operations  coverage,  broad  form
property damage  endorsement and contractor's  protection  liability coverage in
such amounts and with such  companies as Landlord  shall  approve.  Tenant shall
also carry such other types of insurance in form and amount which Landlord shall
reasonably deem to be prudent for Tenant to carry,  should the  circumstances or
conditions  so merit  Tenant  carrying  such type of  insurance.  All  insurance
policies  procured and  maintained  by Tenant  pursuant to this Article 17 shall
name Landlord and any  additional  parties  designated by Landlord as additional
insured, shall be carried with companies licensed to do business in the State of
Tennessee  reasonably  satisfactory to Landlord and shall be non-cancellable and
not subject to material  change except after thirty (30) days' written notice to
Landlord.  Such policies or duly executed certificates of insurance with respect
thereto,  accompanied  by proof of payment  of the  premium  therefor,  shall be
delivered to Landlord  prior to the Rental  Commencement  Date,  and renewals of
such policies  shall be delivered to Landlord at least thirty (30) days prior to
the expiration of each respective policy term.

<PAGE>

     18.Waiver of  Subrogation.  Landlord and Tenant shall each have included in
all policies of commercial  property  insurance,  commercial  general  liability
insurance,  and business interruption and other insurance  respectively obtained
by them  covering the Demised  Premises,  the Building and contents  therein,  a
waiver  by the  insurer  of all  right  of  subrogation  against  the  other  in
connection  with any loss or damage  thereby  insured  against.  Any  additional
premium for such waiver shall be paid by the primary insured. To the full extent
permitted by law,  Landlord and Tenant each waives all right of recovery against
the other for,  and agrees to release  the other  from  liability  for,  loss or
damage to the extent  such loss or damage is  covered  by valid and  collectible
insurance  in effect at the time of such loss or damage or would be  covered  by
the insurance  required to be  maintained  under this Lease by the party seeking
recovery.

     19.Default.

__________________________(a)  The following events shall be deemed to be events
of  default  by Tenant  under  this  Lease:  (i)  Tenant  shall  fail to pay any
installment of Rent or any other charge or assessment against Tenant pursuant to
the terms hereof  within five (5) days after the due date  thereof;  (ii) Tenant
shall fail to comply with any term,  provision,  covenant or warranty made under
this Lease by Tenant,  other than the payment of the Rent or any other charge or
assessment  payable by Tenant,  and shall not cure such failure  within  fifteen
(15) days after notice thereof to Tenant;  (iii) Tenant or any guarantor of this
Lease shall make a general  assignment  for the benefit of  creditors,  or shall
admit in writing  its  inability  to pay its debts as they  become due, or shall
file a petition in bankruptcy, or shall be adjudicated as bankrupt or insolvent,
or  shall  file  a  petition  in  any  proceeding  seeking  any  reorganization,
arrangement,  composition,  readjustment,  liquidation,  dissolution  or similar
relief under any present or future statute, law or regulation,  or shall file an
answer  admitting  or fail  timely to  contest  the  material  allegations  of a
petition filed against it in any such proceeding; (iv) a proceeding is commenced
against  Tenant or any  guarantor  of this  Lease  seeking  any  reorganization,
arrangement,  composition,  readjustment,  liquidation,  dissolution  or similar
relief  under  any  present  or  future  statute,  law or  regulation,  and such
proceeding shall not have been dismissed  within  forty-five (45) days after the
commencement  thereof;  (v) a receiver  or trustee  shall be  appointed  for the
Demised Premises or for all or  substantially  all of the assets of Tenant or of
any  guarantor  of this Lease;  (vi) Tenant  shall  abandon or vacate all or any
portion of the Demised  Premises or fail to take possession  thereof as provided
in this Lease; (vii) Tenant shall do or permit to be done anything which creates
a lien upon the Demised  Premises or the Project and such lien is not removed or
discharged  within  fifteen (15) days after the filing  thereof;  (viii)  Tenant
shall fail to return a properly  executed  instrument  to Landlord in accordance
with the  provisions  of Article 27 hereof  within the time period  provided for
such return following  Landlord's request for same as provided in Article 27; or
(ix) Tenant shall fail to return a properly  executed  estoppel  certificate  to
Landlord in accordance  with the provisions of Article 28 hereof within the time
period  provided  for  such  return  following  Landlord's  request  for same as
provided in Article 28.

<PAGE>

__________________________(b) Upon the occurrence of any of the aforesaid events
of  default,  Landlord  shall  have the  option to pursue any one or more of the
following remedies without any notice or demand  whatsoever:  (i) terminate this
Lease, in which event Tenant shall immediately surrender the Demised Premises to
Landlord  and if Tenant fails to do so,  Landlord  may without  prejudice to any
other remedy which it may have for possession or arrearages in Rent,  enter upon
and take  possession of the Demised  Premises and expel or remove Tenant and any
other person who may be occupying said Demised Premises or any part thereof,  by
force,  if  necessary,  without  being  liable for  prosecution  or any claim of
damages therefor; Tenant hereby agreeing to pay to Landlord on demand the amount
of all loss and damage which Landlord may suffer by reason of such  termination,
whether through inability to relet the Demised Premises on satisfactory terms or
otherwise;  (ii) terminate Tenant's right of possession (but not this Lease) and
enter  upon and take  possession  of the  Demised  Premises  and expel or remove
Tenant and any other  person who may be occupying  said Demised  Premises or any
part thereof, by entry (including the use of force, if necessary), dispossessory
suit  or  otherwise,   without  thereby  releasing  Tenant  from  any  liability
hereunder,  without  terminating  this  Lease,  and  without  being  liable  for
prosecution  or any claim of damages  therefor and, if Landlord so elects,  make
such alterations,  redecorations and repairs as, in Landlord's judgment,  may be
necessary to relet the Demised Premises, and Landlord may, but shall be under no
obligation  to do so,  relet the  Demised  Premises  or any  portion  thereof in
Landlord's  or Tenant's  name,  but for the account of Tenant,  for such term or
terms  (which may be for a term  extending  beyond  the Lease  Term) and at such
rental or rentals and upon such other terms as Landlord may deem advisable, with
or without  advertisement,  and by private  negotiations,  and  receive the rent
therefor,  Tenant  hereby  agreeing to pay to Landlord the  deficiency,  if any,
between all Rent reserved hereunder and the total rental applicable to the Lease
Term  hereof  obtained by Landlord  re-letting,  and Tenant  shall be liable for
Landlord's  expenses in redecorating  and restoring the Demised Premises and all
costs incident to such  re-letting,  including  broker's  commissions  and lease
assumptions, and in no event shall Tenant be entitled to any rentals received by
Landlord in excess of the amounts due by Tenant  hereunder;  or (iii) enter upon
the  Demised  Premises  by  force,  if  necessary,   without  being  liable  for
prosecution  or any  claim  of  damages  therefor,  and do  whatever  Tenant  is
obligated  to do under the terms of this Lease;  and Tenant  agrees to reimburse
Landlord on demand for any expenses including,  without  limitation,  reasonable
attorneys'  fees which  Landlord  may incur in thus  effecting  compliance  with
Tenant's  obligations  under this Lease and Tenant  further agrees that Landlord
shall not be liable  for any  damages  resulting  to  Tenant  from such  action,
whether  caused  by  negligence  of  Landlord  or  otherwise.  If this  Lease is
terminated  by  Landlord as a result of the  occurrence  of an event of default,
Landlord may declare the entire amount of Rent and other charges and assessments
which in Landlord's reasonable determination would become due and payable during
the  remainder of the Lease Term  (including,  but not limited to,  increases in
Rent  pursuant  to Article 7  hereof),  discounted  to present  value by using a
discount  factor  of  eight  percent  (8%)  per  annum,  to be due  and  payable
immediately.  Upon the  acceleration  of such amounts,  Tenant agrees to pay the
same at  once,  together  with  all  Rent  and  other  charges  and  assessments
theretofore due, at Landlord's  address as provided herein;  provided,  however,
that  such  payment  shall not  constitute  a penalty  or  forfeiture  but shall
constitute  liquidated damages for Tenant's failure to comply with the terms and
provisions of this Lease (Landlord and Tenant  agreeing that  Landlord's  actual
damages in such event arc  impossible to ascertain and that the amount set forth
above is a reasonable  estimate  thereof).  Upon making the entire such payment,
Tenant shall  receive from  Landlord all rents  received by Landlord  from other
tenants  renting the Demised  Premises or any portion  thereof  during the Lease
Term (with appropriate allocations of such rents in the event such other tenants
lease space in addition to the Demised  Premises),  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 the preceding sentence, less all
of Landlord's  costs and expenses  (including,  without  limitation,  Landlord's
expenses  in  redecorating  and  restoring  the Demised  Premises  and all costs
incident  to  such   reletting,   including   broker's   commissions  and  lease
assumptions)  incurred in connection with or in any way related to the reletting
of the Demised Premises.

<PAGE>

__________________________(c) Pursuit of any of the foregoing remedies shall not
preclude  pursuit  of any other  remedy  herein  provided  or any  other  remedy
provided by law or at equity,  nor shall pursuit of any remedy  herein  provided
constitute an election of remedies  thereby  excluding the later  election of an
alternate  remedy,  or a forfeiture  or waiver of any Rent or other  charges and
assessments  payable by Tenant and due to Landlord  hereunder  or of any damages
accruing  to  Landlord by reason of  violation  of any of the terms,  covenants,
warranties and provisions herein  contained.  No reentry or taking possession of
the Demised  Premises by Landlord or any other  action  taken by or on behalf of
Landlord  shall be construed to be an acceptance of a surrender of this Lease or
an election by Landlord to terminate  this Lease unless  written  notice of such
intention is given to Tenant.  Forbearance by Landlord to enforce one or more of
the remedies  herein  provided  upon an event of default  shall not be deemed or
construed to constitute a waiver of such default.  In determining  the amount of
loss or damage which  Landlord may suffer by reason of termination of this Lease
or the deficiency  arising by reason of any reletting of the Demised Premises by
Landlord  as  above  provided,  allowance  shall  be  made  for the  expense  of
repossession.  Tenant agrees to pay to Landlord all costs and expenses  incurred
by Landlord in the enforcement of this Lease, including without limitation,  the
fees of Landlord's attorneys as provided in Article 25 hereof.

     20.Waiver of Breach. No waiver of any breach of the covenants,  warranties,
agreements, provisions, or conditions contained in this Lease shall be construed
as a waiver of said covenant, warranty, provision,  agreement or condition or of
any subsequent  breach thereof,  and if any breach shall occur and afterwards be
compromised,  settled or adjusted,  this Lease shall  continue in full force and
effect as if no breach had occurred.

<PAGE>

     21.Assignment  and Subletting.  Tenant shall not, without the prior written
consent of Landlord,  assign this Lease or any interest herein or in the Demised
Premises, or mortgage,  pledge,  encumber,  hypothecate or otherwise transfer or
sublet the Demised Premises or any part thereof or permit the use of the Demised
Premises by any party other than Tenant.  Consent to one or more such  transfers
or  subleases  shall not  destroy or waive this  provision,  and all  subsequent
transfers and  subleases  shall  likewise be made only upon  obtaining the prior
written consent of Landlord.  Without limiting the foregoing prohibition,  in no
event shall Tenant assign this Lease or any interest herein,  whether  directly,
indirectly  or by operation  of law, or sublet the Demised  Premises or any part
thereof or permit the use of the  Demised  Premises  or any part  thereof by any
party if such  proposed  assignment,  subletting  or use  would  contravene  any
restrictive  covenant  (including any exclusive use) granted to any other tenant
of the Building or would  contravene the provisions of Article 13 of this Lease.
Sublessees or transferees  of the Demised  Premises for the balance of the Lease
Term shall  become  directly  liable to Landlord for all  obligations  of Tenant
hereunder,  without  relieving Tenant (or any guarantor of Tenant's  obligations
hereunder) of any liability therefor,  and Tenant shall remain obligated for all
liability to Landlord arising under this Lease during the entire remaining Lease
Term including any extensions  thereof,  whether or not  authorized  herein.  If
Tenant is a partnership, a withdrawal or change, whether voluntary,  involuntary
or by operation of law, of partners owning a controlling  interest in the Tenant
shall be  deemed  a  voluntary  assignment  of this  Lease  and  subject  to the
foregoing  provisions.  If Tenant is a  corporation,  any  dissolution,  merger,
consolidation or other  reorganization  of Tenant,  or the sale or transfer of a
controlling  interest  in the  capital  stock  of  Tenant,  whether  in a single
transaction  or in a  series  of  transactions,  shall  be  deemed  a  voluntary
assignment of this Lease and subject to the foregoing provisions.  Landlord may,
as a prior  condition to considering any request for consent to an assignment or
sublease,  require Tenant to obtain and submit current  financial  statements of
any  proposed  subtenant  or  assignee  and such other  financial  documentation
relative to the  proposed  subtenant  or assignee  as  Landlord  may  reasonably
require.  In the event  Landlord  consents to an assignment or sublease,  Tenant
shall pay to Landlord a fee to cover Landlord's  accounting costs plus any legal
fees incurred by Landlord as a result of the assignment or sublease. The consent
of Landlord to any proposed  assignment  or sublease may be withheld by Landlord
in its sole and absolute discretion. Landlord may require an additional security
deposit  from the  assignee or  subtenant  as a condition  of its  consent.  Any
consideration,  in excess of the Rent and other charges and sums due and payable
by Tenant under this Lease, paid to Tenant by any assignee of this Lease for its
assignment,  or by any sublessee  under or in connection  with its sublease,  or
otherwise  paid to Tenant by another  party for use and occupancy of the Demised
Premises  or any  portion  thereof,  shall be  promptly  remitted  by  Tenant to
Landlord as  additional  rent  hereunder and Tenant shall have no right or claim
thereto  as against  Landlord.  No  assignment  of this  Lease  consented  to by
Landlord shall be effective  unless and until Landlord shall receive an original
assignment  and  assumption  agreement,  in form and substance  satisfactory  to
Landlord, signed by Tenant and Tenant's proposed assignee,  whereby the assignee
assumes due  performance  of this Lease to be done and performed for the balance
of the then  remaining  Lease Term of this Lease.  No  subletting of the Demised
Premises,  or any part thereof,  shall be effective unless and until there shall
have been delivered to Landlord an agreement, in form and substance satisfactory
to Landlord, signed by Tenant and the proposed sublessee,  whereby the sublessee
acknowledges  the right of Landlord to continue or terminate  any  sublease,  in
Landlord's sole  discretion,  upon termination of this Lease, and such sublessee
agrees to recognize and to attorn to Landlord in the event that  Landlord  under
such circumstances agrees to continue such sublease.  Upon Landlord's receipt of
a  request  by  Tenant to assign  this  Lease or any  interest  herein or in the
Demised  Premises  or to  transfer  or sublet the  Demised  Premises or any part
thereof  or permit  the use of the  Demised  Premises  by any party  other  than
Tenant,  Landlord  shall have the right,  at Landlord's  option,  to exercise in
writing any of the  following  options:  (a) To  terminate  this Lease as to the
portion of the  Demised  Premises  proposed  to be  assigned  or sublet;  (b) to
consent to the proposed  assignment or sublease,  subject to the other terms and
conditions  set forth in this  Article  21; or (c) to refuse to  consent  to the
proposed  assignment  or sublease,  which  refusal  shall be deemed to have been
exercised unless Landlord gives Tenant written notice providing otherwise.

<PAGE>

     22.Destruction.

__________________________(a)  If the  Demised  Premises  are damaged by fire or
other  casualty,  the same shall be repaired or rebuilt as speedily as practical
under the  circumstances  at the  expense  of  Landlord,  unless  this  Lease is
terminated  as provided in this  Article 22, and during the period  required for
restoration,  a just and proportionate part of Base Rental shall be abated until
the Demised Premises are repaired or rebuilt.

__________________________(b) If the Demised Premises are (i) damaged to such an
extent that repairs  cannot,  in Landlord's  judgment,  be completed  within one
hundred  eighty (180) days after the date of the  commencement  of repair of the
casualty,  or (ii)  damaged  or  destroyed  as a result  of a risk  which is not
insured under the insurance  policies  required  hereunder,  or (iii) damaged or
destroyed during the last eighteen (18) months of the Lease Term, or (iv) if the
Building is damaged in whole or in part (whether or not the Demised Premises are
damaged) to such an extent that the Building cannot, in Landlord's judgment,  be
operated  economically  as an integral unit, then and in any such event Landlord
may at its option  terminate  this  Lease by notice in writing to Tenant  within
sixty (60) days after the day of such  occurrence.  If the Demised  Premises are
damaged to such an extent  that  repairs  cannot,  in  Landlord's  judgment,  be
completed   within  one  hundred  eighty  (180)  days  after  the  date  of  the
commencement  of  repair  of  the  casualty  or  if  the  Demised  Premises  are
substantially  damaged  during the last  eighteen (18) months of the Lease Term,
then in either such event Tenant may elect to terminate  this Lease by notice in
writing to Landlord within fifteen (15) days after the date of such  occurrence.
Unless  Landlord  or  Tenant  elects  to  terminate  this  Lease as  hereinabove
provided,  this Lease will  remain in full force and effect and  Landlord  shall
repair such damage at its expense to the extent required under  subparagraph (c)
below as expeditiously as possible under the circumstances.

(c) If Landlord should elect or be obligated  pursuant to subparagraph (a) above
to repair or rebuild because of any damage or destruction, Landlord's obligation
shall be limited to the  original  Building  and any other work or  improvements
which were originally  performed or installed at Landlord's expense as described
in Exhibit "D" hereto or with the proceeds of the Tenant Improvement  Allowance.
If the cost of performing  such repairs exceeds the actual proceeds of insurance
paid or  payable to  Landlord  on account  of such  casualty,  or if  Landlord's
mortgagee or the lessor under a ground or  underlying  lease shall  require that
any  insurance  proceeds  from a  casualty  loss  be paid  to it,  Landlord  may
terminate  this Lease  unless  Tenant,  within  fifteen  (15) days after  demand
therefor, deposits with Landlord a sum of money sufficient to pay the difference
between  the cost of repair  and the  proceeds  of the  insurance  available  to
Landlord for such purpose.

__________________________(d)  In no event shall Landlord be liable for any loss
or damage sustained by Tenant by reason of casualties  mentioned  hereinabove or
any other accidental casualty.

     23.Landlord's  Lien.  Landlord  shall at all times have a valid  first lien
upon all of the personal  property of Tenant situated in the Demised Premises to
secure  payment of Rent and other sums and charges due hereunder  from Tenant to
Landlord  and to  secure  the  performance  by  Tenant  of  each  and all of the
covenants, warranties,  agreements and conditions hereof. Said personal property
shall not be removed from the Demised  Premises  without the consent of Landlord
until all  arrearage in Rent and other charges as well as any and all other sums
of money due hereunder  shall first have been paid and discharged and until this
Lease and all of the covenants,  conditions,  agreements  and provisions  hereof
have been fully performed by Tenant.  Tenant shall from time to time execute any
financing  statements  and other  instruments  necessary to perfect the security
interest granted herein. The lien herein granted may be foreclosed in the manner
and form provided by law for the foreclosure of security  instruments or chattel
mortgages, or in any other manner provided by law. This Lease is intended as and
constitutes a security  agreement  within the meaning of the Uniform  Commercial
Code of the State of Tennessee.

<PAGE>

     24.Services  by Landlord.  Landlord  shall  provide the  Building  Standard
Services  described on Exhibit "E" attached  hereto and by this reference made a
part hereof.

     25.Attorneys' Fees and Homestead. If any Rent or other debt owing by Tenant
to Landlord  hereunder  is collected  by or through an  attorney-at-law,  Tenant
agrees to pay an additional amount equal to fifteen percent (15%) of such sum as
attorneys'  fees.  If Landlord  uses the  services  of any  attorney in order to
secure  compliance  with any other  provisions of this Lease, to recover damages
for any breach or default of any other provisions of this Lease, or to terminate
this Lease or evict Tenant,  Tenant shall reimburse Landlord upon demand for any
and all attorneys' fees and expenses so incurred by Landlord.  Tenant waives all
homestead  rights and  exemptions  which it may have under any law  against  any
obligation  owing under this Lease,  and assigns to Landlord its  homestead  and
exemptions  to the extent  necessary to secure  payment and  performance  of its
covenants and agreements hereunder.

     26.Time. Time is of the essence of this Lease and whenever a certain day is
stated for payment or performance  of any obligation of Tenant or Landlord,  the
same enters into and becomes a part of the consideration hereof.

     27.Subordination and Attornment.

__________________________(a)  Tenant  agrees  that this Lease and all rights of
Tenant  hereunder  are and shall be  subject  and  subordinate  to any ground or
underlying  lease which may now or hereafter be in effect  regarding the Project
or any  component  thereof,  to any mortgage now or  hereafter  encumbering  the
Demised Premises or the Project or any component  thereof,  to all advances made
or hereafter to be made upon the security of such mortgage,  to all  amendments,
modifications,  renewals,  consolidations,  extensions and  restatements of such
mortgage, and to any replacements and substitutions for such mortgage. The terms
of  this  provision  shall  be  self-operative  and  no  further  instrument  of
subordination shall be required.  Tenant,  however, upon request of any party in
interest,  shall execute  promptly such  instrument  or  certificates  as may be
reasonably required to carry out the intent of this provision.

__________________________(b)  If any  mortgagee  or  lessee  under a ground  or
underlying lease elects to have this Lease superior to its mortgage or lease and
signifies  its  election  in the  instrument  creating  its  lien or lease or by
separate recorded instrument, then this Lease shall be superior to such mortgage
or  lease,  as the case  may be.  The term  "mortgage",  as used in this  Lease,
includes any deed to secure debt,  deed of trust or security  deed and any other
instrument  creating a lien in connection  with any other method of financing or
refinancing.  The  term  "mortgagee",  as  used  in this  Lease,  refers  to the
holder(s) of the indebtedness secured by a mortgage.

<PAGE>

__________________________(c)  In the event any  proceedings are brought for the
foreclosure  of, or in the event of  exercise  of the power of sale  under,  any
mortgage  covering  the  Demised  Premises or the  Project,  or in the event the
interests of Landlord under this Lease shall be transferred by reason of deed in
lieu of foreclosure or other legal  proceedings,  or in the event of termination
of any Lease under which Landlord may hold title, Tenant shall, at the option of
the transferee or purchaser at foreclosure or under power of sale, or the lessor
of the  Landlord  upon such  Lease  termination,  as the case may be  (sometimes
hereinafter called "such person"), attorn to such person and shall recognize and
be bound and  obligated  hereunder  to such  person as the  Landlord  under this
Lease; provided,  however, that no such person shall be (i) bound by any payment
of Rent for more  than one (1)  month in  advance,  accept  prepayments,  in the
nature of security for the  performance by Tenant of its  obligation  under this
Lease (and then only if such  prepayments have been deposited with and are under
the control of such person); (ii) bound by any amendment or modification of this
Lease made without the express written consent of the mortgagee or lessor of the
Landlord,  as the case may be; (iii)  obligated to cure any defaults  under this
Lease of any prior  landlord  (including  Landlord);  (iv) liable for any act or
omission of any prior landlord (including Landlord);  (v) subject to any offsets
or  defenses  which  Tenant  might have  against any prior  landlord  (including
Landlord); or (vi) bound by any warranty or representation of any prior landlord
(including Landlord) relating to work performed by any prior landlord (including
Landlord)  under this Lease.  Tenant agrees to execute any attornment  agreement
not in conflict  herewith  requested by Landlord,  the mortgagee or such person.
Tenant's  obligation  to attorn to such person shall survive the exercise of any
such power of sale,  foreclosure  or other  proceeding.  Tenant  agrees that the
institution of any suit,  action or other proceeding by any mortgagee to realize
on Landlord's  interest in the Demised Premises or the Building  pursuant to the
powers granted to a mortgagee under its mortgage, shall not, by operation of law
or otherwise,  result in the  cancellation  or termination of the obligations of
Tenant hereunder. Landlord and Tenant agree that notwithstanding that this Lease
is expressly  subject and  subordinate  to any  mortgages,  any  mortgagee,  its
successors  and  assigns,  or other  holder of a mortgage  or of a note  secured
thereby,  may sell the Demised Premises or the Building,  in the manner provided
in the mortgage and may, at the option of such  mortgagee,  its  successors  and
assigns, or other holder of the mortgage or note secured thereby, make such sale
of the Demised Premises or Building subject to this Lease.

     28.Estoppel  Certificates.  Within ten (10) days after request  therefor by
Landlord, Tenant agrees to execute and deliver to Landlord in recordable form an
estoppel  certificate  addressed  to  Landlord,  any  mortgagee  or  assignee of
Landlord's interest in, or purchaser of, the Demised Premises or the Building or
any part thereof, certifying (if such be the case) that this Lease is unmodified
and is in full force and effect (and if there have been modifications,  that the
same is in full force and effect as modified  and stating  said  modifications);
that there are no defenses or offsets against the enforcement thereof or stating
those  claimed by Tenant;  and stating the date to which Rent and other  charges
have been paid. Such  certificate  shall also include such other  information as
may  reasonably be required by such  mortgagee,  proposed  mortgagee,  assignee,
purchaser or Landlord.  Any such certificate may be relied upon by Landlord, any
mortgagee,  proposed mortgagee,  assignee, purchaser and any other party to whom
such certificate is addressed.

     29.No  Estate.  This Lease shall  create the  relationship  of landlord and
tenant  only  between  Landlord  and  Tenant  and no  estate  shall  pass out of
Landlord.  Tenant shall have only an usufruct,  not subject to levy and sale and
not assignable in whole or in part by Tenant accept as herein provided.

     30.Cumulative Rights. All rights, powers and privileges conferred hereunder
upon the parties  hereto shall be cumulative to, but not  restrictive  of, or in
lieu of those conferred by law.

<PAGE>

     31.Holding  Over.  If Tenant  remains in  possession  after  expiration  or
termination of the Lease Term with or without Landlord's written consent, Tenant
shall become a tenant at sufferance, and there shall be no renewal of this Lease
by operation of law.  During the period of any such holding over, all provisions
of this Lease shall be and remain in effect accept that the monthly rental shall
be double the amount of Rent (including any adjustments provided herein) payable
for the last  full  calendar  month of the  Lease  Term  including  renewals  or
extensions.  The inclusion of the preceding  sentence in this Lease shall not be
construed as Landlord's consent for Tenant to hold over.

     32.Surrender of Premises.  Upon the expiration or other termination of this
Lease,  Tenant shall quit and  surrender  to Landlord  the Demised  Premises and
every part thereof and all  alterations,  additions  and  improvements  thereto,
broom clean and in good condition and state of repair,  reasonable wear and tear
only  accepted.  If Tenant  is not then in  default,  Tenant  shall  remove  all
personalty  and  equipment  not  attached to the Demised  Premises  which it has
placed upon the Demised Premises,  and Tenant shall restore the Demised Premises
to the condition  immediately preceding the time of placement thereof. If Tenant
shall fail or refuse to remove all of Tenant's effects, personalty and equipment
from the Demised  Premises upon the expiration and termination of this Lease for
any cause  whatsoever  or upon Tenant  being  dispossessed  by process of law or
otherwise,  such effects,  personalty and equipment shall be deemed conclusively
to be abandoned and may be appropriated,  sold,  stored,  destroyed or otherwise
disposed of by Landlord  without written notice to Tenant or any other party and
without  obligation to account for them. Tenant shall pay Landlord on demand any
and  all  expenses  incurred  by  Landlord  in the  removal  of  such  property,
including,  without limitation, the cost of repairing any damage to the Building
or Project  caused by the  removal of such  property  and  storage  charges  (if
Landlord  elects to store such  property).  The covenants and conditions of this
Article 32 shall survive any expiration of termination of this Lease.

     33.Notices.  All notices  required or permitted to be given hereunder shall
be in writing  and shall be deemed to have been fully  given,  whether  actually
received or not, when  deposited,  postage  prepaid,  in the United States Mail,
certified,  return  receipt  requested,  and  addressed to Landlord or Tenant at
their  respective  address  set forth  hereinabove  or at such other  address as
either  party  shall  have  theretofore  given  to the  other by  notice  herein
provided.  Tenant hereby  designates and appoints as its agent to receive notice
of all distraint  proceedings  and all other notices  required under this Lease,
the person in charge of the Demised Premises at the time said notice is given or
occupying said Demised  Premises at said time; and, if no person is in charge of
or occupying the said Demised Premises, then such services or notice may be made
by attaching the same,  in lieu of mailing,  on the main entrance to the Demised
Premises.

     34.Damage or Theft of Personal Property. All personal property brought into
the  Demised  Premises  by Tenant,  or Tenant's  employees,  agent,  or business
visitors,  shall be at the risk of Tenant only, and Landlord shall not be liable
for theft thereof or any damage  thereto  occasioned  by any act of  co-tenants,
occupants, invitees or other users of the Building or any other person. Landlord
shall not be at any time be liable for damage to any property.

<PAGE>

     35.Eminent Domain.

__________________________(a)  If all or part of the Demised  Premises  shall be
taken for any public or quasi-public  use by virtue of the exercise of the power
of eminent  domain or by private  purchase  in lieu  thereof,  this Lease  shall
terminate as to the part so taken as of the date of taking,  and, in the case of
a partial  taking,  either  Landlord or Tenant shall have the right to terminate
this Lease as to the  balance of the Demised  Premises by written  notice to the
other  within  thirty  (30) days  after  such date;  provided,  however,  that a
condition to the exercise by Tenant of such right to terminate shall be that the
portion of the  Demised  Premises  taken  shall be of such  extent and nature as
substantially  to handicap,  impede or impair Tenant's use of the balance of the
Demised Premises.  If title to so much of the Project is taken that a reasonable
amount of  reconstruction  thereof will not in Landlord's sole discretion result
in the Building being a practical  improvement  and reasonably  suitable for use
for the purpose for which it is designed, then this Lease shall terminate on the
date that the  condemning  authority  actually  takes  possession of the part so
condemned or purchased.

__________________________(b)  If this Lease is terminated  under the provisions
of this  Article 35, Rent shall be  apportioned  and  adjusted as of the date of
termination.  Tenant  shall  have no  claim  against  Landlord  or  against  the
condemning  authority for the value of any leasehold  estate or for the value of
the unexpired  Lease Term  provided  that the  foregoing  shall not preclude any
claim that Tenant may have against the condemning  authority for the unamortized
cost of  leasehold  improvements,  to the  extent  the same  were  installed  at
Tenant's  expense  (and  not  with  the  proceeds  of  the  Tenant   Improvement
Allowance),  or for loss of  business,  moving  expenses or other  consequential
damages, in accordance with subparagraph (d) below.

__________________________(c)  If there is a partial  taking of the  Project and
this Lease is not thereupon  terminated under the provisions of this Article 35,
then this Lease  shall  remain in full force and  effect,  and  Landlord  shall,
within a reasonable time thereafter, repair or reconstruct the remaining portion
of  the  Building  to  the  extent   necessary  to  make  the  same  a  complete
architectural unit; provided,  that in complying with its obligations hereunder,
Landlord  shall not be  required  to expend  more than the net  proceeds  of the
condemnation  award which are paid to Landlord.  Upon any such  partial  taking,
Landlord shall have the right to reduce the figure  described in Article 8(b)(y)
hereof by an  amount  equal to the  product  of (x) the  amount  of tax  savings
arising  from such partial  taking,  as  determined  by Landlord in its sole but
reasonable  discretion,  divided by the number of square feet of Rentable  Floor
Area of the  Building,  multiplied  by (y) the number of square feet of Rentable
Floor Area of the Demised Premises.

__________________________(d)  All compensation awarded or paid to Landlord upon
a total or partial taking of the Demised Premises or the Project shall belong to
and be the property of Landlord  without any  participation  by Tenant.  Nothing
herein shall be construed to preclude Tenant from prosecuting any claim directly
against the condemning  authority for loss of business,  for damage to, and cost
of removal of, trade fixtures,  furniture and other personal property  belonging
to Tenant, and for the unamortized cost of leasehold  improvements to the extent
the same were  installed  at Tenant's  expense (and not with the proceeds of the
Tenant  Improvement  Allowance);  provided,  however,  that no such claim  shall
diminish or adversely affect Landlord's award.

__________________________(e) Notwithstanding anything to the contrary contained
in this Article 35, if, during the Lease Term,  the use or occupancy of any part
of  the  Project  or  the  Demised  Premises  shall  be  taken  or  appropriated
temporarily for any public or quasi-public  purpose under any governmental  law,
ordinance or regulation,  or by right of eminent domain, this Lease shall be and
remain  unaffected by such taking or appropriation  and Tenant shall continue to
pay in full all Rent payable  hereunder by Tenant  during the Lease Term. In the
event of any such temporary appropriation or taking, Tenant shall be entitled to
receive that portion of any award which represents  compensation for the loss of
use or occupancy  of the Demised  Premises  during the Lease Term,  and Landlord
shall be entitled to receive that portion of any award which represents the cost
of restoration and  compensation for the loss of use or occupancy of the Demised
Premises after the end of the Lease Term.

<PAGE>

     36.Parties.  The term  "Landlord",  as used in this  Lease,  shall  include
Landlord and its successors and assigns.  It is hereby  covenanted and agreed by
Tenant that should  Landlord's  interest in the Demised  Premises cease to exist
for any reason during the Lease Term, then notwithstanding the happening of such
event, this Lease nevertheless shall remain in full force and effect, and Tenant
hereby  agrees to attorn to the then  owner of the  Demised  Premises.  The term
"Tenant"  shall  include  Tenant  and  its  heirs,  legal   representatives  and
successors,  and shall also include Tenant's  assignees and sublessees,  if this
Lease shall be validly  assigned or the Demised  Premises sublet for the balance
of the Lease Term or any renewals or extensions thereof.  In addition,  Landlord
and  Tenant  covenant  and agree that  Landlord's  right to  transfer  or assign
Landlord's  interest  in and to the  Demised  Premises,  or any  part  or  parts
thereof,  shall be  unrestricted,  and that in the event of any such transfer or
assignment  by  Landlord  which  includes  the  Demised   Premises,   Landlord's
obligations to Tenant hereunder shall cease and terminate, and Tenant shall look
only and solely to Landlord's assignee or transferee for performance thereof.

37. Liability of Tenant.  Tenant hereby indemnifies  Landlord from and agrees to
hold Landlord  harmless  against,  any and all liability,  loss, cost, damage or
expense,  including,  without limitation,  court costs and reasonably attorneys'
fees, imposed on Landlord by any person  whomsoever,  caused in whole or in part
by any  act or  omission  of  Tenant,  or  any  of its  employees,  contractors,
servants,  agents,  subtenants,  assignees,   representatives  or  invitees,  or
otherwise  occurring in  connection  with any default of Tenant  hereunder.  The
provisions of this Article 37 shall survive any termination of this Lease.

     38.Relocation of the Premises.

__________________________(a) In the event the Demised Premises leased to Tenant
contain less than one-half (1/2) of the total square feet of Rentable Floor Area
on the floor on which the Demised  Premises are located,  Landlord  reserves the
right as any time or from time to time,  at its option and upon  giving not less
than thirty (30) days' prior  written  notice to Tenant,  to transfer and remove
Tenant from the Demised  Premises herein  specified to any other available rooms
and  offices  of  substantially  equal size and area in the  Building  (or other
building  in  the  development  of  which  the  Building  is a  part)  and at an
equivalent Base Rental. Landlord shall bear the expense of said removal together
with the reasonable expense of replacement business cards and stationery and the
expense of any renovation or alterations to said substituted  space necessary to
make the same  substantially  conform in arrangement  and layout to the original
space  described in this Lease.  If Landlord  exercises  such  option,  then the
substituted  space  shall  for  all  purposes  hereof  be  deemed  to be  and to
constitute  the  Demised  Premises  under this Lease and all terms,  conditions,
covenants, warranties, agreements and provisions of this Lease including but not
limited to the same Base  Rental  Rate per square  foot of  Rentable  Floor Area
shall  continue  in full  force and effect  and shall  apply to the  substituted
space.  Tenant  agrees to vacate  the  Demised  Premises  herein  specified  and
relocate to said substituted space promptly after the substituted space is ready
for Tenant's  occupancy as provided herein,  and Tenant's failure to do so shall
constitute an event of default by Tenant under this Lease.

__________________________(b) In the event the Demised Premises leased to Tenant
contain less than one-half (1/2) of the total square feet of Rentable Floor Area
on the floor on which the Demised Premises are located,  Landlord shall have the
right to terminate this Lease effective at any time during the final twelve (12)
months of the Lease Term upon giving  written  notice of such election to Tenant
at least ninety (90) days prior to the effective  date of such  termination.  In
the event Landlord shall exercise such option to terminate this Lease,  Landlord
shall  bear the cost of moving  Tenant's  furniture,  files  and other  personal
property  from the Demised  Premises to other office  space in the  Metropolitan
Knoxville,  Tennessee area selected by Tenant, and in addition,  the Base Rental
for the last  month of  Tenant's  occupancy  of the  Demised  Premises  shall be
waived.

<PAGE>

     39.Force Majeure.  In the event of strike,  lockout,  labor trouble,  civil
commotion, Act of God, or any other cause beyond a party's control (collectively
"force  majeure")  resulting in  Landlord's  inability to supply the services or
perform the other obligations  required of Landlord hereunder,  this Lease shall
not terminate and Tenant's obligation to pay Rent and all other charges and sums
due and payable by Tenant  shall not be affected or excused and  Landlord  shall
not be considered  to be in default  under this Lease.  If, as a result of force
majeure,  Tenant is  delayed in  performing  any of its  obligations  under this
Lease, other than Tenant's obligation to take possession of the Demised Premises
on or before the Rental  Commencement Date and to pay Rent and all other charges
and sums payable by Tenant hereunder,  Tenant's performance shall be excused for
a period  equal to such  delay  and  Tenant  shall  not  during  such  period be
considered  to be in default  under this Lease with  respect to the  obligation,
performance of which has thus been delayed.

     40.Landlord's  Liability.  Landlord  shall have no personal  liability with
respect to any of the  provisions of this Lease.  If Landlord is in default with
respect to its  obligations  under this Lease,  Tenant  shall look solely to the
equity of  Landlord  in and to the  Building  and the Land for  satisfaction  of
Tenant's remedies, if any. It is expressly understood and agreed that Landlord's
liability  under the terms of this Lease shall in no event  exceed the amount of
its interest in and to said Land and Building.  In no event shall any partner of
Landlord  nor any joint  venturer  in  Landlord,  nor any  officer,  director or
shareholder  of  Landlord or any such  partner or joint  venturer of Landlord be
personally liable with respect to any of the provisions of this Lease.

     41.Landlord's  Covenant of Quiet  Enjoyment.  Provided  Tenant performs the
terms,  conditions  and  covenants  of this Lease,  and subject to the terms and
provisions hereof,  Landlord covenants and agrees to take all necessary steps to
secure  and to  maintain  for the  benefit  of Tenant  the  quiet  and  peaceful
possession of the Demised Premises, for the Lease Term, without hindrance, claim
or molestation by Landlord or any other person lawfully claiming under Landlord.

     42.Security Deposits.

__________________________(a)  As  security  for  Tenant's  obligations  to take
possession of the Demised  Premises in  accordance  with the terms of this Lease
and to  comply  with  all  of  Tenant's  covenants,  warranties  and  agreements
hereunder,  Tenant  shall  deposit  with  Landlord  the sum set forth in Article
1(m)(i)  above on the date Tenant  executes and delivers this Lease to Landlord.
Such amount shall be applied by Landlord, without interest, to the first monthly
installment(s) of Base Rental as they become due hereunder.  In the event Tenant
fails to take possession of the Demised Premises as aforesaid, said sum shall be
retained by Landlord for application in reduction,  but not in satisfaction,  of
damages suffered by Landlord as a result of such breach by Tenant.

__________________________(b)   As   additional   security   for  the   faithful
performance by Tenant  throughout the Lease Term, and any extensions or renewals
thereof,  of all the terms and  conditions of the Lease on the part of Tenant to
be performed,  Tenant shall deposit with COMPASS Management & Leasing,  Inc., as
agent for  Landlord,  the sum set forth in  Article  1(m)(ii)  above on the date
Tenant  executes  and  delivers  this Lease to  Landlord.  Such amount  shall be
returned to Tenant, without interest,  within twenty (20) days after the day set
for the  expiration  of the Lease Term,  or any  extension  or renewal  thereof,
provided  Tenant has fully and  faithfully  observed  and  performed  all of the
terms, covenants, agreements, warranties and conditions hereof on its part to be
observed and  performed.  Landlord shall have the right to apply all or any part
of said deposit toward the cure of any default of Tenant.  If all or any part of
said security deposit is so applied by Landlord,  then Tenant shall  immediately
pay to Landlord an amount  sufficient  to return  said  security  deposit to the
balance on deposit with Landlord prior to said application.

<PAGE>

__________________________(c)  In the event of a sale or transfer of  Landlord's
interest in the Demised  Premises or the  Building or a lease by Landlord of the
Building,  Landlord  shall  have the  right to  transfer  the  within  described
security  deposits to the purchaser or lessor,  as the case may be, and Landlord
shall be relieved  of all  liability  to Tenant for the return of such  security
deposits.  Tenant shall look solely to the new owner or lessor for the return of
said security deposits.  The security deposits shall not be mortgaged,  assigned
or encumbered by Tenant. In the event of a permitted assignment under this Lease
by Tenant,  the security deposits shall be held by Landlord as a deposit made by
the permitted assignee and Landlord shall have no further liability with respect
to the return of said security deposits to the original Tenant.

__________________________(d)  Neither Landlord nor its agents shall be required
to keep the security  deposits  separate from their general  accounts,  it being
agreed that the security deposits may be commingled with other funds of Landlord
or of its agents.  It is further agreed and acknowledged by Tenant that Landlord
or its agents  shall  have the right to  deposit  the  security  deposits  in an
interest-bearing  account,  and all interest  accrued on the  security  deposits
shall belong to Landlord and will be retained by Landlord as its property.

     43.Hazardous  Substances.  Tenant  hereby  covenants and agrees that Tenant
shall not cause or permit any "Hazardous Substances" (as hereinafter defined) to
be generated,  placed, held, stored, used, located or disposed of at the Project
or any part thereof, except for Hazardous Substances as are commonly and legally
used or stored as a consequence of using the Demised Premises for general office
and administrative  purposes,  but only so long as the quantities thereof do not
pose a threat to public  health or to the  environment  or would  necessitate  a
"response action",  as that term is defined in CERCLA (as hereinafter  defined),
and so long as Tenant strictly complies or causes compliance with all applicable
governmental  rules and  regulations  concerning  the use or  production of such
Hazardous  Substances.  For purposes of this Article 43, "Hazardous  Substances"
shall mean and include  those  elements or compounds  which are contained in the
list  of  Hazardous  Substances  adopted  by  the  United  States  Environmental
Protection  Agency (EPA) or the list of toxic pollutants  designated by Congress
or the EPA which are  defined as  hazardous,  toxic,  pollutant,  infectious  or
radioactive by any other federal, state or local statute, law, ordinance,  code,
rule, regulation, order or decree regulating,  relating to or imposing liability
(including,  without  limitation,  strict  liability)  or  standards  of conduct
concerning,  any hazardous,  toxic or dangerous waste, substance or material, as
now or at any time hereinafter in effect  (collectively  "Environmental  Laws").
Tenant hereby agrees to indemnify  Landlord and hold Landlord  harmless from and
against any and all losses,  liabilities,  including strict liability,  damages,
injuries, expenses, including reasonable attorneys' fees, costs of settlement or
judgment and claims of any and every kind whatsoever paid,  incurred or suffered
by, or asserted against,  Landlord by any person,  entity or governmental agency
for, with respect to, or as a direct or indirect  result of, the presence in, or
the escape, leakage, spillage,  discharge, emission or release from, the Demised
Premises of any Hazardous Substances (including, without limitation, any losses,
liabilities,  including strict liability, damages, injuries, expenses, including
reasonable  attorneys'  fees,  costs of any  settlement  or  judgment  or claims
asserted or arising under the Comprehensive Environmental Response, Compensation
and Liability Act ["CERCLA"],  any so-called federal, state or local "Superfund"
or "Superlien" laws or any other Environmental Law); provided, however, that the
foregoing indemnity is limited to matters arising solely from Tenant's violation
of the covenant contained in this Article.  The obligations of Tenant under this
Article shall survive any expiration or termination of this Lease.

<PAGE>

     44.Submission  of Lease.  The submission of this Lease for examination does
not  constitute  an offer to lease and this Lease shall be  effective  only upon
execution  hereof by  Landlord  and Tenant and upon  execution  of any  required
Guaranty Agreement annexed hereto and incorporated herein as Exhibit "F".

     45.Severability.  If any  clause  or  provision  of the  Lease is  illegal,
invalid or  unenforceable  under  present or future laws,  the remainder of this
Lease shall not be affected thereby,  and in lieu of each clause or provision of
this Lease which is illegal, invalid or unenforceable, there shall be added as a
part of this Lease a clause or provision as nearly  identical to the said clause
or provision as may be legal, valid and enforceable.

     46.Entire  Agreement.  This  Lease  contains  the entire  agreement  of the
parties and no  representations,  inducements,  promises or agreements,  oral or
otherwise,  between  the parties not  embodied  herein  shall be of any force or
effect.  No failure of Landlord to exercise any power given Landlord  hereunder,
or to insist upon strict  compliance  by Tenant  with any  obligation  of Tenant
hereunder,  and no custom or practice of the parties at variance  with the terms
hereof, shall constitute a waiver of Landlord's right to demand exact compliance
with the  terms  hereof.  This  Lease may not be  altered,  waived,  amended  or
extended except by an instrument in writing signed by Landlord and Tenant.  This
Lease is not in recordable  form, and Tenant agrees not to record or cause to be
recorded this Lease or any short form or memorandum thereof.

     47.Headings.  The use of headings  herein is solely for the  convenience of
indexing the various  paragraphs  hereof and shall in no event be  considered in
construing or interpreting any provision of this Lease.

     48.Broker.  Broker(s) [as defined in Article  1(n)]  is(are)  entitled to a
leasing  commission  from  Landlord  by  virtue  of this  Lease,  which  leasing
commission  shall be paid by Landlord to Broker(s) in accordance  with the terms
of a separate agreement between Landlord and Broker(s). Tenant hereby authorizes
Broker(s)  and  Landlord to identify  Tenant as a tenant of the  Building and to
state the amount of space  leased by Tenant in  advertisements  and  promotional
materials  relating to the Building.  Tenant represents and warrants to Landlord
that  [except  with  respect  to  any  Broker(s)   identified  in  Article  1(n)
hereinabove, which has(have) acted as agent for Tenant (and not for Landlord) in
this transaction] no broker, agent, commission salesperson,  or other person has
represented  Tenant in the negotiations for and procurement of this Lease and of
the Demised Premises and that except with respect to any Broker(s) identified in
Article 1(n)  hereinabove] no commissions,  fees or compensation of any kind are
due  and  payable  in  connection  herewith  to any  broker,  agent,  commission
salesperson  or other  person as a result  of any act or  agreement  of  Tenant.
Tenant agrees to indemnify and hold Landlord harmless from all loss,  liability,
damage, claim,  judgment,  cost or expense (including reasonable attorneys' fees
and court  costs)  suffered  or  incurred by Landlord as a result of a breach by
Tenant of the representation and warranty contained in the immediately preceding
sentence  or as a  result  of  Tenant's  failure  to pay  commissions,  fees  or
compensation due to any broker who represented Tenant, whether or not disclosed,
or as a result of any claim for any fee, commission or similar compensation with
respect  to this  Lease  made by any  broker,  agent or finder  [other  than the
Broker(s)  identified in Article 1(n)  hereinabove]  claiming to have dealt with
Tenant,  whether or not such claim is meritorious.  The parties hereto do hereby
acknowledge and agree that COMPASS  Management & Leasing,  Inc., a subsidiary of
Equitable  Real  Estate  Investment  Management,  Inc.,  has  acted as agent for
Landlord  in this  transaction  and shall be paid a  commission  by  Landlord in
connection  with this  transaction  pursuant to the terms of a separate  written
commission agreement.  COMPASS Management & Leasing, Inc. has not acted as agent
for Tenant in this  transaction.  Landlord  hereby  warrants and  represents  to
Tenant that  Landlord has not dealt with any broker,  agent or finder other than
COMPASS Management & Leasing,  Inc. in connection with this Lease, and, Landlord
hereby agrees to indemnity and hold Tenant harmless from and against any and all
loss, damage,  liability,  claim, judgment, cost or expense (including,  but not
limited to, reasonable  attorneys' fees and court costs) that may be incurred or
suffered  by Tenant  because  of any claim for any fee,  commission  or  similar
compensation  with  respect to this Lease  made by any  broker,  agent or finder
claiming to have represented Landlord.

<PAGE>

     49.Governing  Law.  The laws of the State of  Tennessee  shall  govern  the
performance and enforcement of this Lease.

     50.Authority.  If Tenant executes this Lease as a corporation,  each of the
persons  executing  this  Lease on  behalf  of  Tenant  does  hereby  personally
represent and warrant that Tenant is a duly incorporated or a duly qualified (if
a foreign  corporation)  corporation and is fully authorized and qualified to do
business  in the State in which  the  Demised  Premises  are  located,  that the
corporation has full right and authority to enter into this Lease, and that each
person signing on behalf of the corporation is an officer of the corporation and
is  authorized  to sign on  behalf  of the  corporation.  If  Tenant  signs as a
partnership, joint venture or sole proprietorship or other business entity (each
being herein called "Entity"), each of the persons executing on behalf of Tenant
does hereby  covenant and warrant that Tenant is a duly  authorized and existing
Entity,  that Tenant has full right and authority to enter into this Lease, that
all persons executing this Lease on behalf of the Entity are authorized to do so
on behalf of the  Entity,  and that such  execution  is fully  binding  upon the
Entity and its partners,  joint venturers or principal, as the case may be. Upon
the  request  of  Landlord,  Tenant  shall  deliver  to  Landlord  documentation
satisfactory to Landlord evidencing  Tenant's compliance with this Article,  and
Tenant agrees to promptly  execute all necessary and reasonable  applications or
documents as reasonably  requested by Landlord,  required by the jurisdiction in
which the  Demised  Premises  is located,  to permit the  issuance of  necessary
permits and certificates for Tenant's use and occupancy of the Demised Premises.

     51.Joint and Several  Liability.  If Tenant comprises more than one person,
corporation,  partnership or other entity,  the liability  hereunder of all such
persons,  corporations,  partnerships  or other  entities  shall  be  joint  and
several.

     52.Special  Stipulations.  The  special  stipulations  attached  hereto  as
Exhibit "G" are hereby incorporated herein by this reference as though fully set
forth (if none, so state). To the extent the special stipulations  conflict with
or are inconsistent  with the foregoing  provisions of this Lease or any exhibit
to this Lease, the special stipulations shall control.

<PAGE>

                                            IN WITNESS WHEREOF, the parties have
hereunto  set their  hands and seals as of  the day, month and  year first above
written.

                                            _____________________________
                                            "LANDLORD":

                                     The Equitable Life Assurance Society of the
                                       United States, a New York corporation

                                             By/s/ Terrell E. Daffer
                                            _____________________________

                                             Date _May  3, 2000

                                             Title:Investment Officer

                                            _____________________________
                                            "TENANT":

                                             By:/s/ Jeffrey R. Hazarian
                                            _____________________________

                                             Date

                                             Title:__CFO_________________

                                             Witness:__/s/ James A.Robison
                                            _____________________________

                                             Title:___Treasurer__________

<PAGE>

                              RULES AND REGULATIONS

      1. No sign, picture,  advertisement or notice visible from the exterior of
the  Demised  Premises  shall  be  installed,  affixed,  inscribed,  painted  or
otherwise  displayed  by  Tenant  on any  part of the  Demised  Premises  or the
Building unless the same is first approved by Landlord.  Any such sign, picture,
advertisement  or notice  approved by Landlord shall be painted or installed for
Tenant at  Tenant's  cost by Landlord or by a party  approved  by  Landlord.  No
awnings, curtains, blinds, shades or screens shall be attached to or hung in, or
used in connection with any window or door of the Demised  Premises  without the
prior consent of Landlord,  including approval by Landlord of the quality, type,
design, color and manner of attachment.

     2. Tenant agrees that its use of electrical  current shall never exceed the
capacity of existing feeders, risers or wiring installation.

      3. The Demised  Premises shall not be used for storage of merchandise held
for sale to the general  public.  Tenant shall not do or permit to be done in or
about the Demised Premises or Building anything which shall increase the rate of
insurance  on said  Building or obstruct or  interfere  with the rights of other
lessees of  Landlord  or annoy them in any way,  including,  but not limited to,
using any musical instrument,  making loud or unseemly noises, or singing,  etc.
The Demised  Premises  shall not be used for sleeping or lodging.  No cooking or
related  activities shall be done or permitted by Tenant in the Demised Premises
except with permission of Landlord.  Tenant will be permitted to use for its own
employees within the Demised  Premises a small microwave oven and  Underwriters'
Laboratory approved equipment for brewing coffee, tea, hot chocolate and similar
beverages,  provided that such use is in accordance with all applicable federal,
state,  county and city  laws,  codes,  ordinances,  rules and  regulations.  No
vending machines of any kind will be installed, permitted or used on any part of
the Demised  Premises  without the prior  consent of  Landlord.  No part of said
Building  or  Demised  Premises  shall be used for  gambling,  immoral  or other
unlawful  purposes.  No intoxicating  beverage shall be sold in said Building or
Demised Premises without the prior written consent of Landlord.  No area outside
of the Demised Premises shall be used for storage purposes at any time.

      4. No birds or  animals of any kind  shall be  brought  into the  Building
(other  than  trained  seeing-eye  dogs  required  to be  used  by the  visually
impaired). No bicycles, motorcycles or other motorized vehicles shall be brought
into the Building.

      5. The sidewalks,  entrances,  passages,  corridors,  halls, elevators and
stairways  in the  Building  shall not be  obstructed  by Tenant or used for any
purposes other than those for which same were intended as ingress and egress. No
windows, floors or skylights that reflect or admit light into the Building shall
be covered or obstructed by Tenant.  Toilets, wash basins and sinks shall not be
used for any purpose  other than those for which they were  constructed,  and no
sweeping,  rubbish or other  obstructing or improper  substances shall be thrown
therein.  Any damage resulting to them, or to heating apparatus,  from misuse by
Tenant or its employees, shall be borne by Tenant.

      6. Only one (I) key for the Demised  Premises  will be furnished to Tenant
without charge.  Landlord may make a reasonable  charge for any additional keys.
Only one (I) access card for the Building  will be  furnished to Tenant  without
charge.  Landlord may make a reasonable  charge for any additional access cards.
No additional  lock, latch or bolt of any kind shall be placed upon any door nor
shall any changes be made in existing locks without  written consent of Landlord
and  Tenant  shall in each such case  furnish  Landlord  with a key for any such
lock. At the termination of the Lease,  Tenant shall return to Landlord all keys
and access  cards  furnished to Tenant by  Landlord,  or other vise  procured by
Tenant,  and in the  event of loss of any  keys or  access  cards so  furnished,
Tenant shall pay to Landlord the cost thereof.

      7.  Landlord  shall have the right to prescribe  the weight,  position and
manner of  installation  of heavy  articles  such as safes,  machines  and other
equipment brought into the Building. No safes,  furniture,  boxes, large parcels
or other  kind of  freight  shall be taken to or from the  Demised  Premises  or
allowed in any elevator,  hall or corridor  except at times allowed by Landlord.
No  deliveries  shall be made in  passenger  elevators.  Tenant shall make prior
arrangements  with  Landlord  for use of  freight  elevator  for the  purpose of
transporting  such  articles  and such  articles  may be taken in or out of said
Building  only  between  or  during  such  hours  as may be  arranged  with  and
designated by Landlord.  The persons  employed to move the same must be approved
by Landlord.  No hand trucks,  except those  equipped with rubber tires and side
guards, shall be permitted in the Building. No hand trucks shall be permitted in
any passenger elevator. In no event shall any weight be placed upon any floor by
Tenant so as to exceed the  design  conditions  of the floors at the  applicable
locations.

      8.  Tenant  shall not cause or permit  any  gases,  liquids or odors to be
produced  upon  or  permeate  from  the  Demised  Premises,  and  no  flammable,
combustible or explosive fluid, chemical, substance or item (including,  without
limitation, natural Christmas trees) shall be brought into the Building.

<PAGE>

      9. Every person,  including Tenant,  its employees and visitors,  entering
and leaving the Building  may be  questioned  by a watchman as to that  person's
business  therein  and may be  required  to sign  such  person's  name on a form
provided by Landlord for  registering  such person;  provided  that,  except for
emergencies or other extraordinary  circumstances,  such procedures shall not be
required  between  the  hours of 7:00 a.m.  and 6:00  p.m.,  on all days  except
Saturdays,  Sundays  and  Holidays.  Landlord  may also  implement a card access
security system to control access during such other times. Landlord shall not be
liable for  excluding any person from the Building  during such other times,  or
for  admission of any person to the Building at any time, or for damages or loss
for theft resulting therefrom to any person, including Tenant.

      10. Unless  agreed to in writing by Landlord,  Tenant shall not employ any
person other than Landlord's  contractors for the purpose of cleaning and taking
care of the Demised  Premises.  Cleaning service will not be furnished on nights
when rooms are  occupied  after 6:30 p.m.,  unless,  by  agreement  in  writing,
service is extended to a later hour for specifically  designated rooms. Landlord
shall not be responsible for any loss, theft.

      11. No connection  shall be made to the electric  wires or gas or electric
fixtures, without the consent in writing on each occasion of Landlord All glass,
locks and  trimmings  in or upon the doors and windows of the  Demised  Premises
shall be kept whole and in good  repair.  Tenant  shall not injure,  overload or
deface the  Building,  the  woodwork or the walls of the Demised  Premises,  nor
permit any noisome, noxious, noisy or offensive business.

      12. If Tenant  requires  wiring for a bell or buzzer  system,  such wiring
shall be done by the electrician of Landlord only, and no outside wiring persons
shall be allowed to do work of this kind  unless by the  written  permission  of
Landlord or its representatives.  If telegraph or telephonic service is desired,
the wiring for same shall be approved by Landlord,  and no boring or cutting for
wiring  shall be done unless  approved by  Landlord or its  representatives,  as
stated.  The  electric  current  shall not be used for power or  heating  unless
written  permission to do so shall first have been obtained from Landlord or its
representatives in writing, and at an agreed cost to Tenant.

      13.  Tenant and its  employees  and  invitees  shall  observe and obey all
parking and traffic  regulations  imposed by  Landlord.  All  vehicles  shall be
parked only in areas designated therefor by Landlord.

     14. Canvassing,  peddling,  soliciting and distribution of handbills or any
other  written  materials  in the  Building  are  prohibited,  and Tenant  shall
cooperate to prevent the same.

      15.  Landlord  shall have the right to change the name of the Building and
to change the street  address of the  Building,  provided  that in the case of a
change in the street address, Landlord shall give Tenant not less than 180 days'
prior  notice of the  change,  unless the  change is  required  by  governmental
authority.

      16. The  directory of the Building will be provided for the display of the
name and location of the tenants.  Any additional name which Tenant shall desire
to place upon said  directory  must first be  approved  by  landlord,  and if so
approved, a reasonable charge will be made therefor.

      17.  Tenant,  in order to  obtain  minimum  effectiveness  of the  cooling
system,  shall  lower  and close the  blinds  (at not less than a 450  angle) or
drapes  when the sun's rays are  directly  in windows of the  Demised  Premises.
Tenant shall not remove the standard blinds  installed in the Demised  Premises.
Tenant shall not place items on window sills in the Demised Premises.

      18. Smoking is prohibited in the main building  lobby,  public  corridors,
elevator lobbies, service elevator vestibules,  stairwells,  restrooms and other
common areas within the Building.

<PAGE>

      19.  Landlord may waive any one or more of these Rules and Regulations for
the benefit of any  particular  Lessee,  but no such waiver by Landlord shall be
construed  as a waiver  of such  Rules  and  Regulations  in favor of any  other
Lessee,  nor  prevent  Landlord  from  thereafter  enforcing  any such Rules and
Regulations against any or all of the other lessees of the Building.

      20.  These Rules and  Regulations  are  supplemental  to, and shall not be
construed  to in any way  modify  or  amend,  in whole or in  part,  the  terms,
covenants,  agreements  and  conditions  of  any  lease  of any  premise  in the
Building.

      21.  Landlord  reserves the right to make such other and reasonable  Rules
and  Regulations  as in its  judgment  may from time to time be  needed  for the
safety,  care  and  cleanliness  of the  Building  and  the  Land,  and  for the
preservation of good order therein.

<PAGE>

      Exhibit "A"
      Page 1 of 1

                                   EXHIBIT "A"

                         LEGAL DESCRIPTION CROSS PARK I
                          -----------------------------

     The property  subject to the attached  Leasehold  Agreement is described as
follows:

     SITUATED in District 6 of Knox  County,  Tennessee,  without the  corporate
limits  of the City of  Knoxville,  and  being  more  particularly  bounded  and
described as follows:

     Beginning  on an iron pin in the north  line of Cross  Park  drive  located
493.80 feet in the  westerly  direction  from the western  line of Park  Village
Road; thence with said northern line of Cross Park Drive,  South 67 deg. 10 min.
West,  220.23 feet to an iron pin;  thence leaving Cross Park Drive and with the
severance line, North 23 deg. 08 min. West,  571.82 feet to a pipe in the Rankin
line; thence with Rankin, North 65 deg. 46 min. East, 82.28 feet to an iron pin;
thence  North 23 deg. 09 min.  West,  22.03 feet to an iron pin corner to Rankin
and Gray;  thence with Gray, North 77 deg. 46 min. East,  302.24 feet to an iron
pin; thence South 12 deg. 14 min. East,  18.40 feet to an iron pin; thence South
47 deg. 00 min.  East,  53.18 feet to an iron pin;  thence South 34 deg. 25 min.
West, 216.23 feet to an iron pin; thence South 57 deg. 25 min. East, 160.29 feet
to an iron pin;  thence South 15 deg. 43 min. East,  162.37 feet to an iron pin;
thence South 65 deg. 42 min.  West,  69.39 feet to an iron pin;  thence South 28
deg. 38 min. East, 61.92 feet to the point of BEGINNING, containing 3.85 acres

                         LEGAL DESCRIPTON CROSS PARK II

                                   TRACT NO. 1

      The property subject to the attached  Leasehold  Agreement is described as
follows:

     SITUATED in the Sixth (6th) Civil District of Knox county,  Tennessee,  and
lying on the western side of Park  Village  Road and the northern  line of Cross
Park Drive and being more fully described as follows:

     BEGINNING AT AN IRON PIN, said pin standing at the point of intersection of
the  western  line of Park  Village  Road with the  northern  line of Cross Park
Drive;  thence  with a curve to the right,  the radius of which is 948.87  feet,
through a central  angle of 18 deg. 26 min.,  the chord  bearing  being South 79
deg.  23 min.  West,  for a distance  of 173.87  feet to an iron pin, a point of
reverse  curve;  thence with a curve to the left,  the radius of which is 998.87
feet,  through a central angle of 18 deg. 26 min., the chord bearing being south
76 deg.  43 min.  West for a  distance  of 319.97  feet to an iron  pin;  thence
leaving Cross Park Drive and running North 28 deg. 38 min.  West,  61.92 feet to
an iron pin;  thence  North 65 deg.  42 min.  East,  69.39  feet to an iron pin;
thence North 15 deg. 43 min. West,  162.37 feet to an iron pin;  thence North 57
deg.  25 min.  West,  160.25 feet to an iron pin;  thence  North 34 deg. 25 min.
East,  216.23 feet to an iron pin; thence North 47 deg. 00 min. West, 53.18 feet
to an iron pin;  thence North 12 deg. 14 min.  West,  18.40 feet to an iron pin;
thence  North 77 deg.  46 min.  East,  326.74 feet to an iron pin in the western
line of Park  Village  Road;  thence with the  western  line of said road to the
following  courses and distances;  South 19 deg. 30 min. East, 112.78 feet to an
iron  pin;  thence  South 24 deg.  52 min.  East,  456.99  feet to the  point of
beginning.  Containing 5.29 acres as shown on survey of T.J.  Hatmaker,  bearing
date of November 22, 1978.

                                   TRACT NO. 2

     SITUATED in the Sixth (6th) Civil District of Knox county,  Tennessee,  and
lying on the western side of Park  Village  Road and the northern  line of Cross
Park Drive and being more fully described as follows:

     BEGINNING  AT AN IRON PIN,  said pin  standing at the extreme  northeastern
corner  of the  above  described  tract  and also  standing  in a  northwesterly
direction  569.77 feet from the point of  intersection  of the northern  line of
Cross Park Drive with the western  line of Park  Village  Road;  thence with the
northern line of the above described tract,  South 77 deg. 46 min. West,  628.98
feet to an iron pin;  thence  with a fence  line,  North 33 deg.  03 min.  East,
355.40 feet to an iron pin; thence South 12 deg. 14 min. East, 223.72 feet to an
iron pin;  thence North 77 deg. 46 min. East,  370.00 feet to an iron pin in the
western line of Park Village Road;  thence with the western line of same,  South
19 deg. 30 min. East,  25.75 feet to the point of beginning.  As shown on survey
of T.J. Hatmaker bearing date of November 22, 1978.

<PAGE>

      Exhibit "B"
      Page 1 of 1

                                   EXHIBIT "B"

                                   FLOOR PLAN

<PAGE>

      Exhibit "C"
      Page 1 of 1

                                   EXHIBIT "C"

                               SUPPLEMENTAL NOTICE

     __________________________RE:       Lease dated as of ____________________,

 2000 by and between

     _____________________________       The  Equitable  Life Assurance Society

of the United States, as Landlord, and

     _____________________________       Tenera, Inc., as Tenant.

      Dear Sir:

     Pursuant to Article 3 of the captioned Lease, please be advised as follows:

     1.The Rental Commencement Date is the ______ day of _______________,  2000,
and the expiration  date of the Lease Term is the _____ day of  _______________,
_____, subject however to the terms and provisions of the Lease.

     2.The Rentable Floor Area of the Demised Premises is _______ square feet.

     3.Terms  denoted herein by initial  capitalization  shall have the meanings
ascribed thereto in the Lease.

                                            _____________________________
                                            "LANDLORD"

_____________________________               The Equitable Life Assurance
                                            Society of the United States

                                            -----------------------------

_____________________________               By:      CB Richard Ellis

_____________________________       By:________________________________________

                                             Date

_____________________                        Title:_________________________

<PAGE>

      Exhibit "D"
      Page 1 of 1

                             LANDLORD'S CONSTRUCTION
                         ----------------------------- .

       1.  Subject  to the  terms  of the  above  provisions  concerning  Tenant
Improvement  Allowance,  Landlord  shall provide the Demised  Premises to Tenant
consistent  with the  floor  plans  and  specifications  shown  on the  approved
construction documents, dated

                                   EXHIBIT "D"

      2000, (hereinafter shall be referred as "Construction  Documents") subject
to the terms of Tenant Improvement Allowance below.

                                            A.The  Demised   Premises  shall  be
deemed "ready for occupancy" [as that term is used in Article 1 paragraph (k) in
the Lease] when Landlord's

construction, as provided above, is substantially completed. In the event of any
dispute as to when Landlord's  construction has been substantially  completed as
aforesaid,  the  determination by Landlord's  architect and/or designer shall be
final and binding upon the parties.

                                            B.Any  work  or  improvements  which
exceed the amount of the Tenant  Improvement  Allowance  or any Tenant  requests
which deviates from the improvements

provided  in the  Construction  Documents  shall be at Tenant's  sole cost,  and
Landlord shall not be liable for any delays caused by Tenant's deviations.

                                            C.Tenant   acknowledges  and  agrees
that the Demised Premises consist of second  generation  space, and that, except
for the modifications to the

Demised Premises made pursuant to the  Construction  Documents Tenant accept the
Demised Premises in its "as is, where is" condition as of the date of the Lease.

      2.  Landlord  shall  provide  Tenant a Tenant  Improvement  Allowance  for
expenses  incurred  in the  construction  of the  tenant  improvements  below  a
finished ceiling in the Demised  Premises and all  Construction  Documents in an
amount not to exceed$2.50 per rentable  square foot or $31,965.00.  If the final
pricing of the final  Construction  Documents  exceeds  the  Tenant  Improvement
Allowance,  then before a construction  contract is awarded and work begins, for
work to be paid for from the Tenant Improvement Allowance, Tenant shall have the
right to  approve  all  pricing of the  Tenant  Improvement  items for which the
Tenant  Improvement  Allowance shall be the source of payment.  Tenant shall not
unreasonably withhold its approval.

                          -----------------------------

<PAGE>

      Exhibit "E"
      Page 1 of 1

                                   EXHIBIT "E"

                           BUILDING STANDARD SERVICES

     Landlord  shall furnish the  following  services to Tenant during the Lease
Term (the "Building Standard Services"):

     (a)Hot and cold  domestic  water and  common-use  restrooms  and toilets at
locations provided for general use and as reasonably deemed by Landlord to be in
keeping with the first-class standards of the Building.

     (b)Subject  to  curtailment  as required  by  governmental  laws,  rules or
mandatory  regulations  and  subject  to the  design  conditions  set  forth  in
Paragraph 3(a) of Exhibit "D" attached hereto, central heat and air conditioning
in season,  as such temperatures and in such amounts as are reasonably deemed by
Landlord to be in keeping with the first-class  standards of the Building.  Such
heating and air conditioning  shall be furnished between 8:00 a.m. and 6:00 p.m.
on weekdays  (from Monday through  Friday,  inclusive) and between 9:00 a.m. and
12:00 p.m. on  Saturdays,  all  exclusive  of  Holidays,  as defined  below (the
'Building Operating Hours').

     (c)Electric lighting service for all public areas and special service areas
of the Building in the manner and to the extent reasonably deemed by Landlord to
be in keeping with the first-class standards of the Building.

     (d)Janitor  service shall be provided five (5) days per week,  exclusive of
Holidays (as herein below defined),  in a manner that Landlord  reasonably deems
to be consistent with the first-class standards of the Building.

     (e)Security  services for the Building  comparable as to coverage,  control
and responsiveness  (but not necessarily as to means for accomplishing  same) to
other  similarly  situated   first-class,   multi-tenant   office  buildings  in
Knoxville,  Tennessee;  provided, however, Landlord shall have no responsibility
to prevent,  and shall not be liable to Tenant  for,  any  liability  or loss to
Tenant,  its agents,  employees and visitors arising out of losses due to theft,
burglary,  or damage or injury to persons or property  caused by persons gaining
access to the Demised  Premises,  and Tenant hereby  releases  Landlord from all
liability for such losses, damages or injury.

     (f)Sufficient  electrical  capacity  to operate  (i)  incandescent  lights,
typewriters,  calculating machines,  photocopying machines and other machines of
the same low voltage electrical  consumption (120/208 volts),  provided that the
total  rated  electrical  design  load for said  lighting  and  machines  of low
electrical  voltage shall not exceed 4.0 watts per square foot of rentable area;
and (ii) lighting  (277/480 volts),  provided that the total  electrical  design
load for said  lighting  shall not exceed 1.5 watts per square  foot of rentable
area (each such rated  electrical  design loan to be hereinafter  referred to as
the "Building Standard Rated Electrical Design Load").

     Should Tenant's total rated electrical  design load for the entire Premises
or any portion  thereof  (including,  but not limited to,  computer or telephone
rooms) exceed the Building  Standard Rated Electrical Design Load for either low
or  high  voltage  electrical  consumption,  or if  Tenant's  electrical  design
requires low voltage or high voltage circuits in excess of Tenant's share of the
building  standard  circuits,  Landlord will (at Tenant's  expense) install such
additional  circuits and associated  high voltage  panels and/or  additional low
voltage panels with associated  transformers (which additional circuits,  panels
and transformers shall be hereinafter referred to as the "Additional  Electrical
Equipment").  If  the  Additional  Electrical  Equipment  is  installed  because
Tenant's low voltage or high voltage  rated  electrical  design load exceeds the
applicable  Building  Standard Rated Electrical  Design Load, then a meter shall
also be added (at Tenant's  expense) to measure the electricity used through the
Additional Electrical Equipment.

<PAGE>

     The design and installation of any Additional  Electrical Equipment (or any
related  meter)  required  by Tenant  shall be subject to the prior  approval of
Landlord  (which  approval  shall not be  unreasonably  withheld).  All expenses
incurred  by  Landlord  in  connection  with  the  review  and  approval  of any
Additional  Electrical Equipment shall also be reimbursed to Landlord by Tenant.
Tenant shall also pay on demand the actual metered cost of electricity  consumed
through the Additional  Electrical  Equipment (if  applicable),  plus any actual
accounting  expenses  incurred  by  Landlord  in  connection  with the  metering
thereof.

     If any of Tenant's electrical  equipment requires conditioned air in excess
of building standard air  conditioning,  the same shall be installed by Landlord
(on Tenant's behalf), and Tenant shall pay all design,  installation,  metering,
operating and maintenance costs relating thereto.

     If Tenant requires that certain areas within Tenant's Demised Premises must
operate  in excess  of the  normal  Building  Operating  Hours  (as  hereinabove
defined), the electrical service to such areas shall be separately circuited and
metered  (at  Tenant's  expense)  such that  Tenant  shall be  billed  the costs
associated with electricity  consumed during hours other than Building Operating
Hours.

     (g)All building standard  fluorescent bulb replacement in all areas and all
incandescent  bulb  replacement in public areas,  toilet and restroom areas, and
stairwells.

     (h)Non-exclusive  multiple cab  passenger  service to the Demised  Premises
during Building  Operating  Hours (as hereinabove  defined) and at least one (1)
cab passenger  service to the floor(s) on which the Demised Premises are located
twenty-four (24) hours per day and non-exclusive freight elevator service during
Building Operating Hours (all subject to temporary cessation for ordinary repair
and  maintenance  and during  times when life  safety  systems  override  normal
Building  operating  systems) with such freight  elevator  service  available at
other times upon  reasonable  prior notice and the payment by Tenant to Landlord
of any additional expense actually incurred by Landlord in connection therewith.

     To the extent the services  described  above require  electricity and water
supplied by public utilities,  Landlord's covenants thereunder shall only impose
on Landlord the obligation to use its reasonable efforts to cause the applicable
public  utilities to furnish  same.  Except for  deliberate  and willful acts of
Landlord,  failure by Landlord to furnish the services  described herein, or any
cessation thereof, shall not render Landlord liable for damages to either person
or property, nor be construed as an eviction of Tenant, nor work an abatement of
rent, nor relieve Tenant from  fulfillment of any covenant or agreement  hereof.
In addition to the foregoing,  should any of the equipment or machinery, for any
cause,  fail to operate or  function  properly,  Tenant  shall have no claim for
rebate of rent or damages on account of an  interruption  in service  occasioned
thereby  or  resulting  therefrom;  provided,  however,  Landlord  agrees to use
reasonable efforts to promptly repair said equipment or machinery and to restore
said services during normal business hours.

     The following dates shall  constitute  "Holidays",  as that term is used in
this  Lease:  New  Year's  Day,  Memorial  Day,  Independence  Day,  Labor  Day,
Thanksgiving Day, Friday following  Thanksgiving Day,  Christmas,  and any other
holiday  generally  recognized  as such by  landlords  of  office  space  in the
metropolitan  Nashville office market,  as determined by Landlord in good faith.
If, in the case of any specific holiday mentioned in the preceding  sentence,  a
different day shall be observed than the respective day mentioned, then that day
which constitutes the day observed by national banks in Knoxville,  Tennessee on
account of said holiday shall constitute the Holiday under this Lease.

<PAGE>

      Exhibit "F"
      Page 3 of 3

                                   EXHIBIT "F"

                                    GUARANTY

      (Intentionally left blank)

                          -----------------------------

                          -----------------------------

<PAGE>

      Exhibit "G"
      Page 1 of 1

                                   EXHIBIT "G"

                              SPECIAL STIPULATIONS

                           (Intentionally left blank.)THE SHELL BUILDING

            LANDLORD: 100 Bush Corporation, a California corporation

                              TENANT: Tenera, Inc.

                               DATE: May 30, 2000

<PAGE>

                         THE SHELL BUILDING OFFICE LEASE

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                               Page
<S>                                                                                                            <C>

1.       Definitions..............................................................................................1
                  A.       Premises...............................................................................1
                  B.       Building...............................................................................1
                  C.       Term...................................................................................1
                  D.       Base Monthly Rental....................................................................1
                  E.       Additional Rental......................................................................1
                  F.       Rent...................................................................................1
                  G.       Security Deposit.......................................................................1
                  H.       Purpose................................................................................1
                  I.       Tenant's Address for Notices...........................................................1
                  J.       Landlord's Address for Notices.........................................................1
                  K.       Business Hours.........................................................................1
                  L.       Broker.................................................................................1
                  M.       Guarantor..............................................................................1
                  N.       Addendums and Exhibits to Lease........................................................1
2.       Lease....................................................................................................1
3.       Possession...............................................................................................1
4.       Base Monthly Rental......................................................................................1
5.       Additional Rental........................................................................................2
6.       Security Deposit; Late Charge............................................................................3
7.       Use of Premises..........................................................................................3
8.       Alterations; Mechanics' Liens............................................................................3
9.       Work to be Performed by Landlord.........................................................................4
10.      Restrictions on Use......................................................................................4
11.      Compliance with Law, Environmental.......................................................................4
12.      Indemnity and Exculpation................................................................................5
13.      Public Liability and Property Damage Insurance...........................................................5
                  A.       Public Liability and Property Damage Insurance.........................................6
                  B.       Business Interruption Insurance........................................................6
                  C.       Workers' Compensation Insurance........................................................6
                  D.       Extended Coverage and "All Risk" Insurance.............................................6
                  E.       Builder's Risk Insurance...............................................................6
                  F.       Waiver of Subrogation..................................................................6
                  G.       Other Insurance Matters................................................................6
                  H.       Construction...........................................................................6
14.      Rules and Regulations....................................................................................6
15.      Utilities................................................................................................7
16.      Personal Property Taxes..................................................................................7
17.      Maintenance..............................................................................................8
18.      Restoration of Premises..................................................................................8
19.      Entry by Landlord........................................................................................8
20.      Estoppel Certificates....................................................................................8
21.      Abandonment of Premises..................................................................................9
22.      Removal of Trade Fixtures of Tenant at End of Term.......................................................9
23.      Surrender of Lease.......................................................................................9
24.      Holding Over.............................................................................................9
25.      Grace Period.............................................................................................9
26.      Landlord's Remedies Upon Default.........................................................................9
27.      Attorneys' Fees on Default..............................................................................10
28.      Insolvency..............................................................................................10
29.      Assignment or Subletting................................................................................11
30.      Transfer by Landlord - Release from Liability...........................................................12
31.      Damage..................................................................................................12
32.      Condemnation............................................................................................13
</TABLE>

<TABLE>
<S>                                                                                                              <C>

33.      Subordination to Encumbrances...........................................................................13
34.      Relocation..............................................................................................14
35.      Communications and Computer Lines.......................................................................14
36.      Effect of Exercise of or Failure to Exercise Privilege..................................................14
37.      Waiver..................................................................................................15
38.      Labor Relations.........................................................................................15
39.      Notices.................................................................................................15
40.      Entire Agreement; Amendments............................................................................15
41.      Landmark................................................................................................15
42.      Light and Air...........................................................................................15
43.      Auctions and Signs......................................................................................15
44.      Execution, Recordation..................................................................................15
45.      Tenant's Authority......................................................................................15
46.      Limitation of Tenant's Remedies.........................................................................15
47.      Time and Applicable Law.................................................................................15
48.      Name....................................................................................................16
49.      Provisions are Covenants and Conditions.................................................................16
50.      Severability............................................................................................16
51.      Captions................................................................................................16
52.      Successors..............................................................................................16
53.      Relationship of Parties.................................................................................16
54.      Temporary Space.........................................................................................16
55.      Brokers.................................................................................................16
56.      Interpretation..........................................................................................16
57.      Force Majeure...........................................................................................16
58.      Asbestos................................................................................................16
EXHIBIT AFloor Plan.............................................................................................A-1
EXHIBIT BWork Letter Agreement .................................................................................B-1
EXHIBIT CRules and Regulations of the Building..................................................................C-1
                  A.       Signs................................................................................C-1
                  B.       Window Coverings.....................................................................C-1
                  C.       Building Directory...................................................................C-1
                  D.       Hallways and Passages................................................................C-1
                  E.       Locks................................................................................C-1
                  F.       Restrooms............................................................................C-1
                  G.       Moving In and Out of Premises; Heavy Equipment.......................................C-1
                  H.       Janitorial Services and Cleaning.....................................................C-2
                  I.       Use of Premises......................................................................C-2
                  J.       Communications and Computer Equipment................................................C-2
                  K.       Floor Coverings......................................................................C-2
                  L.       Deliveries...........................................................................C-2
                  M.       Access Refused.......................................................................C-2
                  N.       Soliciting on Premises...............................................................C-2
                  O.       Landlord's Employees.................................................................C-2
                  P.       Vending Machines.....................................................................C-3
                  Q.       Building Name and Address............................................................C-3
                  R.       Trash................................................................................C-3
                  S.       Doors................................................................................C-3
                  T.       Equipment............................................................................C-3
                  U.       Air Conditioning.....................................................................C-3
                  V.       Energy Conservation..................................................................C-3
                  W.       Disorderly Persons...................................................................C-3
                  X.       Smoking..............................................................................C-3
                  Y.       Water Conservation...................................................................C-3
                  Z.       Safety and Security Devices..........................................................C-3
                  AA.      Amendments...........................................................................C-3
EXHIBIT DGuarantee..............................................................................................D-1
EXHIBIT ETerm Commencement Agreement............................................................................E-1
EXHIBIT FProposition 65 NoticeandMaterial Safety Data Sheet.....................................................F-1
EXHIBIT GSpace Plan.............................................................................................G-1
OTHER EXHIBITS (if any):...........................................................................................
</TABLE>

<PAGE>

 ............................................................................---

 ............................................................................---

 ............................................................................---

 ............................................................................---

<PAGE>

                         THE SHELL BUILDING OFFICE LEASE

         This lease ("Lease") is made in San Francisco,  California,  on May __,
2000, between 100 BUSH CORPORATION,  a California  corporation  ("Landlord") and
Tenera, Inc., a Delaware Corporation ("Tenant"). If Tenant consists of more than
one person or entity, the obligations under this Lease imposed on Tenant will be
joint and several.

     1. Definitions. As used throughout this Lease, the following words have the
stated meanings.
1. Premises: Suite 850, consisting of 4,101 rentable square feet, and Suite 820,
consisting of 1,284 rentable  square feet, for a total of 5,385 rentable  square
feet,  as shown on Exhibit A  attached,  being a portion of the 8th floor of the
Building.  The rentable square feet have been stipulated to between Landlord and
Tenant. The rentable square feet includes the usable area, without deduction for
columns  or  projections,  multiplied  by a load  factor  to  reflect a share of
certain  areas,  which may  include  lobbies,  corridors,  mechanical,  utility,
janitorial,  boiler and service  rooms and closets,  restrooms and other public,
common and service areas of the Building.

     2. Building: The Shell Building, 100 Bush Street, San Francisco, California
94104.
     3. Term:  For Suite 820,  commencing  on the later of  September 1, 2000 or
upon Landlord's  substantial  completion of the Tenant Improvements described in
Paragraph 9 hereof for Suite 820; and for Suite 850,  commencing on the later of
November  15,  2000 or upon  Landlord's  substantial  completion  of the  Tenant
Improvements  described  in  Paragraph  9 hereof  for Suite 850 (  "Commencement
Date");  for both Suites 820 and 850, the lease shall  terminate 60 months after
the  Commencement  Date on the day before the  anniversary of such  Commencement
Date ("Termination Date").

     4. Base Monthly  Rental:  $70.00 per  rentable  square foot of Premises per
annum,  which isr  $31,412.50  per month.  The rent shall  increase by $1.00 per
rentable square foot per annum, on the anniversary of the Commencement Date.
     5.  Additional  Rental:  2.504% of the  increase in "Direct  Expenses"  and
2.418% of the increase in "Direct Tax  Expenses"  (as  Paragraphs  5D, 5E and 5F
define those terms) of the Building over said expenses in the calendar year 2000
(the "Base Year"); provided,  however, there shall be no Additional Rent for the
first twelve (12) months of the term. The percentage for Direct  Expenses is the
rentable  square feet of the Premises  divided by the Building  rentable  square
footage of 215,055 and for Direct Tax  Expenses is the  rentable  square feet of
the Premises  divided by the Building Total Rentable  Square Footage of 222,667.
Landlord  may  recalculate   this  percentage  from  time  to  time  to  reflect
reconfigirations, additions or modifications to the Building.
     6. Rent:  Base Monthly  Rental,  Additional  Rental,  and all other charges
payable by Tenant to Landlord.
     7. Security Deposit: An amount equal to $31,412.50.
     8. Purpose: General office and executive administration.
     9. Tenant's Address for Notices: 100 Bush Street, Suite 850, San Francisco,
California 94104.
     10.  Landlord's  Address  for  Notices:  The term  "Landlord's  Address for
Notices"  shall  mean 100 Bush  Corporation,  100 Bush  Street,  San  Francisco,
California 94104.
     11. Business Hours:  The term "Normal Business Hours" shall mean reasonable
hours  determined  by Landlord  from time to time  (federal  and state  holidays
excepted) during which the building is serviced.
     12.  Broker:  The term "Broker"  shall mean Colliers  International  as the
Listing Broker and Insignia ESG as the Procuring Broker.
     13. Guarantor: N/A.
     14.  Addendums  and Exhibits to Lease:  Exhibit A (Floor  Plan),  Exhibit B
(Work Letter Agreement or Tenant  Improvement  Agreement),  Exhibit C (Rules and
Regulations   of  the  Building),   Exhibit  D  (Guarantee),   Exhibit  E  (Term
Commencement  Agreement),  Exhibit F (Proposition  65 Notice and Material Safety
Data Sheet) and Exhibit G (Renewal Option).
         O.

<PAGE>

2. Lease. Landlord leases to Tenant and Tenant leases from Landlord the Premises
upon and subject to the terms, covenants and conditions herein set forth. Tenant
covenants  as a material  part of the  consideration  for this Lease to keep and
perform each and all of said terms, covenants and conditions. Tenant agrees that
this Lease is made upon the condition of such  performance.  Except as set forth
in this Lease,  Tenant accepts the Premises in their "as is" state of repair and
condition,  and Landlord has made no  representations  to Tenant  regarding  the
condition of the Premises or the Building.

3.  Possession.  If  Landlord,  for any  reason  whatever,  is unable to deliver
possession  of the  Premises  to Tenant by the  Commencement  Date (a  "Delay"),
Landlord  will not be liable for any loss  resulting  therefrom,  and this Lease
will  not be  either  void  or  voidable  but  the  Commencement  Date  and  the
Termination  Date,  unless  the Work  Letter  Agreement  or  Tenant  Improvement
Agreement referred to in Paragraph 9 specifically  provides  otherwise,  will be
deferred for the number of days of the Delay. If Landlord tenders  possession of
the Premises to Tenant before the  Commencement  Date,  and Tenant  accepts such
prior tender, such occupancy will be subject to all of the terms,  covenants and
conditions of this Lease including, without limitation, the payment of Rent.

4.       Base Monthly Rental.
1. Tenant agrees to pay Base Monthly Rental,  without notice, in advance, on the
first day of each calendar  month of the Term.  The Base Monthly  Rental for the
first month of the Term will be paid upon  execution of the Lease.  In the event
the Term  commences  or ends on a day other  than the  first  day of a  calendar
month,  then the Base Monthly Rental for such fractional  month will be prorated
based on a 30-day month.

2. Base Monthly Rental will be paid by Tenant to Landlord,  without deduction or
offset, in lawful money of the United States of America,  at the Building office
or to such other person  and/or at such other place as Landlord may from time to
time designate in a notice to Tenant.

3. All other  charges  payable by Tenant  under the Lease shall be due as of the
first  day of the  following  calendar  month  and paid as part of Base  Monthly
Rental unless a different payment date is specified in this Lease.

<PAGE>

5.       Additional Rental.

1. Tenant further agrees to pay Additional Rental, in monthly  installments,  on
the  first  day of each  month of the Term  commencing  on the  first day of the
calendar year following the calendar year set forth in Paragraph 1E. If the Term
ends on a day other than the last day of a calendar month,  then, upon the first
day of the last calendar  month of the Term,  Tenant will pay Landlord a portion
of Additional Rental for such fractional month prorated based on a 30-day month.

2.  Additional  Rental will be paid by Tenant to  Landlord,  without  notice and
without deduction or offset, in lawful money of the United States of America, at
the  Building  office or to such  other  person  and/or at such  other  place as
Landlord may from time to time designate in a notice to Tenant.

3. Landlord will try to give Tenant advance notice of Additional  Rental payable
by Tenant,  but failure by Landlord  to give  advance  notice is not a waiver by
Landlord of its right to receive from Tenant any Additional Rental. In addition,
Landlord may, but is not required to, at or after the start of the calendar year
following  the  calendar  year set  forth in  Paragraph  1E,  notify  Tenant  of
Landlord's  estimate of Tenant's liability for Additional Rental for the ensuing
year,  which amount will be divided into twelve (12) equal portions and added to
the  monthly  payments of rent  required  to be made by Tenant in such year.  If
Tenant's actual payment of Additional  Rental is finally  determined by Landlord
to be greater or less than the total amounts actually paid by Tenant pursuant to
this paragraph during the applicable year ("Landlord's Statement"),  a credit or
payment will be made by Landlord or Tenant,  whichever  the case may be,  within
the thirty (30) days  following  the  issuance  of  Landlord's  Statement.  Upon
written  request by Tenant  within  thirty (30) days of  issuance of  Landlord's
Statement,  Landlord  will  make its prior  year  records  pertaining  to Direct
Expenses  available to Tenant to allow Tenant, at its sole cost and expense,  to
verify their accuracy. Absent such request,  Landlord's Statement shall be final
as to such year.

4.  Direct  Expenses  include  all costs of  operation  and  maintenance  of the
Building as determined by Landlord including,  but not limited to, the following
costs by way of illustration only: premiums for property,  casualty,  liability,
rent  interruption or any other insurance carried by Landlord;  salaries,  wages
and other amounts paid or payable for personnel  including the Building manager,
superintendent, operation and maintenance staff, and other employees of Landlord
involved in the maintenance, management and operation of the Building, including
contributions  and premiums  towards fringe benefits,  unemployment,  disability
insurance,  worker's  compensation  insurance,  pension plan  contributions  and
similar  premiums and  contributions  and the total  charges of any  independent
contractors  or  property  managers  engaged  in the  operation,  repair,  care,
maintenance and cleaning of any portion of the Building;  fair market rental and
other costs with  respect to Building  Management  office;  costs of  accounting
services incurred in the preparation of statements and financial reports,  audit
fees;  cleaning  expenses,  including without  limitation  janitorial  services,
window cleaning and garbage and refuse removal;  landscaping expenses, including
without  limitation  irrigating,  trimming,  fertilizing,  replacing  plants and
floral  arrangements;   heating,  plumbing,  mechanical,  elevator,  sprinklers,
fire/life   safety  systems,   security  and  energy   management   systems  and
steam/utilities  expenses,  including  fuel,  gas,  electricity,  water,  sewer,
telephone,  advertising,  public relations,  tenant relations and activities and
other services, maintaining, operating and repairing components of any equipment
or machinery used in connection with the Building, and the rental of same or any
office or other equipment for the management of the Building; any other items of
repair  and  maintenance  of  the  Building;  cost  of  policing,  security  and
supervision of the Building; audit and accounting fees; any capital improvements
(or  amortization  thereof) (i) made  primarily to reduce Direct  Expenses or to
comply with  governmental  requirements,  (ii) for  replacements  (as opposed to
additions or new  improvements)  of  nonstructural  items  located in the common
areas of the  Property  required to keep such areas in good  condition  or (iii)
expenditures that are consistent with Direct Expenses as defined above, although
the benefits of the  expenditures  survive the current year;  payments under any
easement, operating agreement,  declaration,  restrictive covenant or instrument
pertaining to sharing of costs in a planned development;  fee for administration
and management of the building as determined by Landlord. Direct Expenses do not
include  depreciation  on the  Building  loan  payments,  real estate  brokerage
commissions,  and  costs  directly  attributed  to one  tenant  and not to other
tenants of the Building  generally.  Permitted capital  improvements and repairs
may be amortized in the Landlord's  reasonable discretion over: (i) their useful
lives, (ii) the period during which capital  improvements reduce Direct Expenses
or  (iii)  three  (3)  years.  Landlord  may  allocate  costs of  operation  and
maintenance  between  the  building  where the  Premises  are  located and other
properties owned by landlord or its affiliates and under common  management,  as
determined by landlord in the exercise of its reasonable discretion.  Similarly,
Landlord may make other  allocations of Direct Expenses in accordance with sound
management and accounting principles.

<PAGE>

5. Direct Tax Expenses  include all real property taxes and annual  installments
of real estate assessments on the Building;  personal property taxes on personal
property of Landlord  used in the  operation  or  maintenance  of the  Building;
supplemental  assessments  that may result from changes in ownership or from the
completion of new construction;  escape  assessments;  taxes on the gross or net
rental income of Landlord derived from the Building (excluding,  however,  state
and  federal  personal  or  corporate  income  taxes  measured  by the income of
Landlord from all  sources);  impositions  created to pay for or supplement  the
cost of governmental  services that the Building or its tenants may use; transit
or  transportation  charges;  housing subsidies and/or housing fund assessments;
possessory  interest  taxes;  business or license  taxes or fees;  job  training
subsidies and/or  assessments;  open space charges;  excises;  business or other
license or use fees;  and the  reasonable  costs of  contesting  by  appropriate
proceedings the amount or validity of any of the foregoing.  If, during the Term
of this Lease,  the present real  property  tax is wholly or partly  replaced or
supplemented  by  another  form  of  tax,  there  will be  included  within  the
definition of Direct Tax Expenses any such tax, levy, or assessment  (other than
federal,  state,  or city and county net income taxes or estate,  gift, or other
similar taxes) that, whether or not now customary or within the contemplation of
the parties to this Lease,  may be charged to Landlord  and is by way of example
and not  limitation  (i) levied  upon,  allocable  to, or  measured  by the Rent
payable hereunder;  (ii) levied upon the business of owning and operating rental
properties to the extent such tax is  applicable  to the Premises;  (iii) levied
upon or with  respect to the  possession,  leasing,  operation,  management,  or
occupancy by Tenant of the Premises or any portion thereof,  or (iv) levied upon
or  measured  by  the  value  of  Tenant's   personal   property  or   leasehold
improvements.  Direct Tax Expenses also include all expenses incurred, including
attorneys' and  consultants'  fees, in seeking a reassessment,  reduction of, or
limit on the  increase in any Direct Tax  Expenses,  whether or not  successful.
Property taxes for any calendar year shall include  property taxes which are due
for payment as well as those paid in such year.

6. If the Building  rentable  square  footage is not one hundred  percent (100%)
occupied  during an entire  calendar  year,  including  the Base Year,  then the
variable  component of Direct Expenses and Direct Tax Expenses will be equitably
adjusted so that the total  amount of Direct Tax  Expenses  and Direct  Expenses
equals the amount  which would have been paid or  incurred  by Landlord  had the
Building been one hundred  percent (100%) occupied for the entire calendar year.
In no event will  Landlord  be  entitled  to receive  from  Tenant and the other
tenants in the Building an aggregate  amount in excess of actual Direct Expenses
and Direct Tax Expenses as a result of the foregoing provision.

6. Security Deposit;  Late Charge. Upon the execution of this Lease, Tenant will
pay Landlord the Security  Deposit to secure the faithful  performance by Tenant
of all of the  terms,  covenants,  and  conditions  of this Lease to be kept and
performed  by Tenant.  The  Security  Deposit  is not being  held in trust,  and
Landlord is not required to segregate the Security  Deposit from its other funds
or pay interest or any other return on such Security  Deposit.  Landlord has the
right  (but not the  obligation)  at any time or  times  to apply  the  Security
Deposit,  or any  portion  thereof,  to any Rent or other sums due and unpaid by
Tenant under this Lease. If Landlord  elects to so apply,  Landlord will deliver
notice to Tenant of the nature and amount so applied.  Tenant must then  deposit
with  Landlord an amount  sufficient  to replace the amount so applied to return
such funds to an amount equal to the original Security Deposit.  If Tenant fails
to make such deposit within five (5) days after Landlord's  notice,  Landlord at
its option may resort to any or all remedies  available to it for the nonpayment
of Rent.  Following the  termination of the Term of this Lease or, if Tenant has
held over beyond such termination, following the end of such hold over, provided
Tenant has vacated  the  Premises  and fully  performed  all of its  obligations
hereunder,  Landlord will return to Tenant the Security Deposit, or such portion
thereof then held by Landlord, after all applications have been made by Landlord
on account of Tenant's breach or default hereunder;  provided, however, any such
return is not an  admission  by Landlord  that Tenant has  performed  all of its
obligations hereunder. It is specifically understood that Tenant has no right at
any time to apply the Security  Deposit,  or any portion thereof,  to any of its
Rent  obligations  (including its last months Rent) or to any other sums due and
payable by Tenant under this Lease. No beneficiary, mortgagee, secured party, or
other holder of any encumbrance  (hereinafter,  "lender"),  nor any purchaser at
any  judicial  or  private  foreclosure  sale  of the  Building,  will  ever  be
responsible  to Tenant for its Security  Deposit  unless the lender or purchaser
has actually received the same.

<PAGE>

         Tenant  acknowledges that late payment by Tenant to Landlord of Rent or
other sums due hereunder will cause Landlord to incur costs not  contemplated by
this Lease, the exact amount of which would be extremely difficult to ascertain.
Such costs include,  but are not limited to, processing and accounting  charges,
and late  charges that may be imposed upon  Landlord.  Accordingly,  if Landlord
does not receive any installment of Rent or any other sum due from Tenant within
ten (10) days after due,  Tenant will pay to Landlord,  in addition to any other
sums payable  hereunder,  a late charge of ten percent  (10%) of the amount due,
plus any attorneys' fees incurred by Landlord because of Tenant's failure to pay
Rent and/or other charges when due  hereunder;  provided,  however,  that in the
first  instance  of late  payment  only,  Tenant  will pay a late charge of five
percent  (5%).  The parties  agree that such late charge  represents  a fair and
reasonable  estimate of the costs that  Landlord  will incur because of the late
payment by Tenant.  Acceptance  of such late charges by the Landlord  will in no
event be a waiver of Tenant's  default with respect to any such overdue  amount,
nor  prevent  Landlord  from  exercising  any of the other  rights and  remedies
granted hereunder.

         In addition,  Tenant will pay Landlord  $50.00 as  additional  Rent for
each check  tendered by Tenant that is not honored for payment by Tenant's  bank
for whatever reason.

     7. Use of Premises.  The  Premises  will be used for the Purpose and for no
other  purposes  without the prior  written  consent of Landlord,  which consent
Landlord may withhold in its absolute discretion.

8.       Alterations; Mechanics' Liens.

1.  Tenant  will not make or  suffer to be made,  directly  or  indirectly,  any
addition  or change  to or  modification  of the  Premises,  including,  without
limitation,   the  installation  of  fixtures,  trade  fixtures,  and  leasehold
improvements  (hereinafter,  "alteration")  without first  obtaining the written
consent of Landlord,  which consent will not be unreasonably  withheld and which
consent  may be  conditioned  upon such  matters  as  Landlord's  prior  written
approval  of the  reasonable  time  or  times  when  the  alterations  are to be
performed,  employment only of contractors and subcontractors who will not cause
labor disharmony,  and other reasonable conditions prior to Landlord's approval.
However,  no alteration will be permitted if it is structural or will affect the
Building's HVAC,  electrical,  or plumbing  systems.  Any alteration  (excluding
trade fixtures and movable furniture installed by Tenant that belongs to Tenant)
becomes  at once a part  of the  realty  and  belongs  to  Landlord  subject  to
Landlord's rights under Paragraph 17. Any alterations will be done in accordance
with plans and specifications approved by Landlord. Landlord may charge Tenant a
reasonable  amount for  approval  of plans and  specifications  for  alterations
costing more than $5,000.

2.All alterations will be made by fully licensed, insured and bonded contractors
approved in writing by Landlord in advance.

<PAGE>

3. If Tenant makes alterations,  it will obtain all permits required and perform
the  work in  accordance  with  all  applicable  laws,  rules,  regulations  and
ordinances.  All such work will be performed in a first class manner  causing no
interference with the operation of the Building and no unreasonable noise, odors
or inconvenience to Landlord or the other tenants of the Building.

4. In making any  alterations,  Tenant will keep the  Premises  and the Building
free from any liens arising out of any work performed,  materials furnished,  or
obligations  incurred  by  Tenant.  Tenant may not make any  alterations  of the
Premises  until  seven (7) days after  receipt by it of the  written  consent of
Landlord  in  order  that  Landlord  may  post or  request  Tenant  to post  any
appropriate  notices  to avoid any  possible  liability  with  respect to liens.
Tenant will, at Landlord's request, prepare, record and post such notices and at
all times  permit  such  notices  to be posted  and to remain  posted  until the
completion  and  acceptance  of such work. In addition,  at Landlord's  request,
Tenant  will  secure at  Tenant's  own cost and  expense a  completion  and lien
indemnity  bond,  satisfactory  to Landlord,  for all such work.  Tenant further
agrees that there will be no  construction,  partitions,  or other  obstructions
which might interfere with Landlord's free access to mechanical installations or
service facilities of the Building or with the moving of Landlord's equipment to
or from the enclosures containing said installations or facilities.  Tenant must
notify  Landlord  if the  Alterations  include  the  handling  of any  Hazardous
Materials1 and whether these materials are of a customary and typical nature for
industry  practices.  Upon  completion of the  Alterations,  Tenant will provide
Landlord  with copies of  as-built  plans.  Neither the  approval by Landlord of
plans and specifications  relating to any Alterations nor Landlord's supervision
or monitoring of any  Alterations  constitute any warranty by Landlord to Tenant
of  the  adequacy  of the  design  for  Tenant's  intended  use  or  the  proper
performance of the Alterations.

5. If,  as a result  of any  alterations  made by  Tenant  it is  necessary  for
Landlord  to make any other  improvements  or repairs to the  Building,  whether
within or without the Premises, such work will be at Tenant's expense.

9. Work to be  Performed  by  Landlord.  Landlord is not required to perform any
work upon the  Premises of any type or nature,  unless there is attached to this
Lease upon  execution a Work Letter  Agreement or Tenant  Improvement  Agreement
initialed by the Landlord which specifies such work (the "Tenant Improvements").
The cost of any  Tenant  Improvements  is borne by the  Tenant  unless  the Work
Letter Agreement specifies otherwise.  Upon substantial completion of the Tenant
Improvements,  Landlord  will so notify  Tenant.  Such  notice  will  constitute
delivery of possession by the Landlord.

<PAGE>

10.      Restrictions on Use.

1. No use will be made or permitted to be made of the  Premises,  nor acts done,
that will increase the existing  rate of insurance  upon the Building or cause a
cancellation of any insurance  policy covering the Building or any part thereof,
nor may Tenant  sell,  or permit to be kept,  used,  or sold in, on or about the
Premises,  any  article  that may be  prohibited  by the  standard  form of fire
insurance  policy.  Tenant will,  at its sole cost and expense,  comply with all
requirements pertaining to the Premises of any insurance organization or company
necessary for the maintenance of reasonable fire and public liability  insurance
covering the Building and its appurtenances.

2.  Tenant will 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 other tenants or
occupants of the Building or injure or annoy them, nor shall Tenant use or allow
the Premises to be used for any immoral,  unlawful,  or objectionable  purposes,
without limiting the generality of the foregoing, Tenant will not make or permit
any unreasonable or unnecessary noises or odors in or upon the Premises.  Tenant
will not commit,  or suffer to be committed,  any waste upon the Premises or any
nuisance  (public  or  private)  or other  act or  thing  of any kind or  nature
whatsoever that may disturb the quiet enjoyment or cause unreasonable  annoyance
of any other tenant in the Building.  The  provisions of this  paragraph are for
the benefit of Landlord  only and are not,  and will not be construed to be, for
the benefit of any tenant or occupant of the Building or any third party.

11.      Compliance with Law, Environmental.

1. Tenant will, at its sole cost and expense, comply with all laws pertaining to
Tenant's use of the Premises, and faithfully observe all laws and the provisions
of all recorded documents in the use of the Premises and all requirements of any
board of fire  underwriters  or other similar body now or hereafter  constituted
related to or affecting the  condition,  use, or occupancy of the Premises.  The
judgment of any court of competent  jurisdiction,  or the admission of Tenant in
any action or  proceeding  against  Tenant,  whether or not  Landlord is a party
thereto,  that Tenant has  violated  any law  pertaining  to the Purpose of this
Lease or Tenant's use of the Premises will be conclusive of that fact as between
Landlord and Tenant.  Without  limiting the  generality  of the  foregoing,  the
duties of Tenant  under  this  provision  will  include  the  making of all such
alterations  of the Premises as may be required by law by reason of Tenant's use
of the  Premises,  or  occasioned  by reason of the  failure of Tenant to effect
repairs, maintenance,  replacement or cleaning of the Premises as required under
this Lease.

<PAGE>

2.       As used herein, the following items have the following meanings:

(1) Environmental  Activity is any actual,  proposed or threatened use, storage,
treatment,  existence,  release, emission, discharge,  generation,  manufacture,
disposal or transportation  of any Hazardous  Materials from, into, on, under or
about the Premises,  or any other  activity or  occurrence  that causes or would
cause any such event to exist.

(2)  Environmental  Requirements  means all present and future  federal,  state,
regional  or local laws  relating  to the use,  storage,  treatment,  existence,
release,   emission,   discharge,   generation,    manufacture,    disposal   or
transportation of any Hazardous Materials.

(3)  Hazardous  Material  is  any  chemical,  substance  or  material  which  is
classified  or  considered  to be hazardous or toxic under any present of future
federal, state, regional or local laws, regulations or guidelines.

         Tenant   will  not  engage  in  nor  permit  the   occurrence   of  any
Environmental  Activity except in the ordinary  course of Tenant's  business and
only in compliance  with all  Environmental  Requirements  and prudent  industry
practices.  Tenant  will,  at its own expense,  procure,  maintain in effect and
comply  with  all  conditions  of any  and  all  permits,  licenses,  and  other
governmental  and  regulatory   approvals   required  under  any   Environmental
Requirements  for any  Environmental  Activity  by  Tenant,  including,  without
limitation, the discharge of (appropriately treated) materials or wastes into or
through any sanitary  sewer serving the Premises,  and upon  termination of this
Lease will cause all of its Hazardous  Materials to be removed from the Premises
in  accordance  with  and  in  compliance  with  all  applicable   Environmental
Requirements.

3. Upon having knowledge  thereof,  Tenant will  immediately  notify Landlord in
writing of (i)any regulatory  action that has been instituted,  or threatened by
any  governmental  agency or court with  respect to Tenant  that  relates to any
Environmental Activity; (ii) any claim relating to any Environmental Activity by
Tenant in, on or about the Premises, or that arises out of or in connection with
any Hazardous  Materials in, on, under or about the Premises or removed from the
Premises;  or (iii) any actual or threatened material release on, under or about
the  Premises or any adjacent  property of any  Hazardous  Material,  except any
Hazardous Material whose discharge or emission is expressly authorized by and in
compliance  with  a  permit  issued  by a  federal,  state,  regional  or  local
governmental agency pursuant to Environmental Requirements.

4. Tenant will provide Landlord with copies of any communications  with federal,
state,  regional or local  governments,  agencies or courts with  respect to any
Environmental Activity or Environmental Requirement relating to the Premises and
any communications with any third party relating to any claim made or threatened
with  respect  to any  Environmental  Activity  by  Tenant  in,  on or about the
Premises.

5. Tenant will indemnify, defend (by counsel reasonably acceptable to Landlord),
protect, and hold Landlord and each of Landlord's partners,  employees,  agents,
attorneys,  successors  and assigns,  free and harmless from and against any and
all claims, liabilities,  penalties,  forfeitures, losses or expenses (including
attorneys'  fees)  arising  from or  caused  in whole or in  part,  directly  or
indirectly,  by (i) an  Environmental  Activity  by Tenant or  Tenant's  agents,
contractors, invitees, employees or partners; or (ii) Tenant's failure to comply
with any Environmental  Requirement.  Tenant's obligations under this Section 11
includes,  without  limitation,  and whether  foreseeable or unforeseeable,  all
costs of any repair or cleanup, removal or remediation action, or detoxification
or decontamination of the Premises, or the preparation and implementation of any
closure,  remedial  action  or other  plans  in  connection  therewith  that are
required as a result of any Environmental  Activity by Tenant,  and survives the
expiration or earlier termination of the Term.

<PAGE>

12. Indemnity and Exculpation.  As a material part of the consideration for this
Lease,  Tenant hereby agrees that Landlord and any lender  holding a mortgage or
deed of trust  covering the Premises will not be liable to Tenant for any damage
to Tenant's  property,  and Tenant  waives all claims  against  such persons for
damage to property from any cause whatsoever. Tenant further agrees that, except
to the extent  arising from the  intentional  or  negligent  acts of Landlord or
Landlord's agents or employees, Tenant will indemnify, defend, and hold Landlord
harmless  from and against any and all claims,  demands,  liabilities,  damages,
judgments,  orders, decrees, actions,  proceedings,  fines, penalties, costs and
expenses,  including without limitation, court costs and attorneys' fees arising
from or  relating to any loss of life,  damage or injury to person,  property or
business  occurring in or from the Premises,  or caused by or in connection with
any  violation  of this Lease or the use of the  Premises or the Building by, or
any other act or omission of, Tenant, any other occupant of the Premises, or any
of their respective agents,  employees,  contractors or guests. Without limiting
the  generality of the foregoing,  Tenant  specifically  acknowledges  that this
indemnity  will  apply  to  claims  in  connection  with or  arising  out of any
alterations  or  improvements  to the  Premises  and  the  transportation,  use,
storage, maintenance, generation, manufacturing,  handling, disposal, release or
discharge of any hazardous materials,  except to the extent that any of the same
arises from the  intentional or negligent acts of Landlord or Landlord's  agents
or employees.

13.      Public Liability and Property Damage Insurance.

1.       Public Liability and Property Damage Insurance.

(1) Tenant at its sole cost and  expense  will  maintain  during the entire Term
(including  any  additional  period  that  Tenant  will  have  possession  of or
otherwise  occupy or conduct  activities in or about the Premises whether before
or after the Term) public liability and property damage insurance with liability
limits of not less than $2,000,000 per occurrence,  combined single limit bodily
injury and/or property damage liability. Landlord will be named as an additional
insured  under  such  policy or  policies,  and the policy or  policies  will be
primary insurance insofar as Landlord is concerned.

(2) If Tenant fails, at any time during the Term, to keep such insurance in full
force and effect,  Landlord  may pay the  necessary  premiums  therefor  and the
repayment thereof will be deemed to be a part of the Rent due hereunder, payable
as such on the next date upon which Base Rental becomes due.

(3) All public  liability  insurance and property  damage  insurance will insure
performance by Tenant of the indemnity  provisions of Paragraph 12; however, the
procuring of insurance within the limits herein set forth is not satisfaction of
Tenant's obligation to indemnify under Paragraph 12.

(4) Not more frequently than every three years, if, in the opinion of Landlord's
lender or of the  insurance  broker  retained by Landlord,  the amount of public
liability  and/or  property  damage  insurance  coverage  at  that  time  is not
adequate,  Tenant will increase the insurance coverage as reasonably required by
either such lender or insurance broker.

<PAGE>

     2.  Business  Interruption  Insurance.  At all times during the Lease Term,
Tenant shall procure and maintain business interruption insurance in such amount
as will reimburse Tenant for direct or indirect loss of earnings attributable to
all perils.

3. Workers' Compensation Insurance.  Tenant will also carry and maintain in full
force and effect during the entire Term hereof (and during any additional period
that Tenant will have possession of or otherwise occupy or conduct activities in
or about the Premises whether before or after the Term) employer's liability and
workers' compensation insurance as required by law.

4.  Extended  Coverage  and "All  Risk"  Insurance.  Tenant  will also carry and
maintain in full force and effect  during the entire Term hereof (and during any
additional  period that Tenant will have  possession  of or otherwise  occupy or
conduct  activities  in, on or about the  Premises  whether  before or after the
Term), at Tenant's sole cost and expense,  a policy or policies of insurance for
damage caused by the perils insured under Standard Fire,  Extended  Coverage and
"All  Risk"  coverage  forms  on  Tenant's   furniture,   fixtures,   equipment,
improvements, alterations, trade fixtures, and other personal property. Landlord
will be named as an additional insured on such policy or policies, to the extent
of its interest in such  property,  and the limits of coverage  will be equal to
90% of the full current replacement value of such property.

     5.  Builder's  Risk  Insurance.  If  Tenant  makes any  alterations  of the
Premises,  Tenant  will,  at Tenant's  sole cost and expense,  carry  "All-Risk"
builder's risk  insurance,  completed  value form, in an amount  satisfactory to
Landlord.

6. Waiver of  Subrogation.  With respect to any loss or damage to property,  the
parties  each  hereby  waive  all  rights  of  subrogation  of their  respective
insurers,  provided such waiver of subrogation  will not affect the right of the
insured to recover thereunder. The parties agree that their respective insurance
policies are now, or will be, endorsed such that said waiver of subrogation will
not  affect  the  right of the  insured  to  recover  thereunder,  so long as no
material additional premium is charged therefor.

<PAGE>

7.   Other Insurance Matters.  All the insurance required under this Lease will:

(1) Be issued by insurance  companies  authorized to do business in  California,
with a  financial  rating of at least an A-10 status as rated in the most recent
edition of Best's Insurance Reports.

(2) Contain an endorsement  requiring  thirty (30) days' written notice from the
insurance company to both parties and to Landlord's  lender before  cancellation
or change in coverage, scope, or amount of any policy.

(3)      Be renewed not less than twenty (20) days before expiration of the term
of the policy.

(4) If Tenant  fails to obtain  Business  Interruption  Insurance as provided in
subparagraph B above,  Tenant waives all claims against Landlord for losses that
would have been  covered by such  insurance,  and  Tenant  covenants  not to sue
Landlord for any reason  whatsoever on account of any direct or indirect loss of
earnings .

         Each policy of insurance required under this Lease, or a certificate of
the policy,  together  with  evidence of payment of premiums,  will be deposited
with Landlord at the commencement of the Term and on each renewal of the policy.

     8. Construction. Nothing in this Paragraph 13 will be construed as creating
or implying the existence of (i) any ownership by Tenant of any  alterations in,
on or about the Premises or (ii) any right of Tenant to make any alterations in,
on or about the Premises.
1.

14. Rules and Regulations.  The Rules and Regulations attached hereto as Exhibit
C are hereby  incorporated  by reference  herein and made a part hereof.  Tenant
shall abide by, and faithfully observe and comply with the Rules and Regulations
and any  reasonable  and  non-discriminatory  amendments,  modifications  and/or
additions thereto as may hereafter be adopted and published by written notice to
tenants  by  Landlord  for  the  safety,  care,  security,   good  order  and/or
cleanliness of the Premises and/or the Building. Landlord shall not be liable to
Tenant for any  violations of such rules and  regulations by any other tenant or
occupant of the Building.

<PAGE>

15.      Utilities and Services.

1. Landlord  agrees to furnish or cause to be furnished to the Premises,  during
reasonable  hours  determined by Landlord and subject to applicable  law and the
rules and  regulations  of the Building,  the following  utilities and services,
subject to the  conditions  and  standards set forth  herein:  (i)  non-attended
automatic  elevator  service (if the  Building  has such  equipment  serving the
Premises),  in common with  Landlord and other  tenants and  occupants and their
agents and  invitees,  (ii) water for  drinking  and rest room  purposes,  (iii)
reasonable janitorial and cleaning services, provided that the Premises are used
exclusively  for office  purposes and are kept reasonably in order by Tenant (if
the Premises are not used exclusively as offices,  Landlord,  at Landlord's sole
discretion,  may require that the Premises be kept clean and in order by Tenant,
at Tenant's expense,  to the satisfaction of Landlord and by persons approved by
Landlord;  and, in all events, Tenant will pay Landlord for the cost of removing
Tenant's  refuse and  rubbish,  to the extent  the same  exceeds  the refuse and
rubbish   attendant  to  normal  office  usage),   (iv)  radiant  heat  and  air
conditioning,  (v) at all  reasonable  times,  electric  current as required for
building standard lighting and customary office equipment.  However: (a) without
Landlord's consent,  Tenant may not install, or permit the installation,  in the
Premises of any space heaters, air conditioning equipment,  electronic equipment
or other type of  equipment  or machines  which will  increase  Tenant's  use of
electric  current  in excess of that  which  Landlord  is  obligated  to provide
hereunder  (provided,  however,  that the foregoing will not preclude the normal
use of personal computers or similar office  equipment);  (b) if Tenant requires
electric current which may disrupt the provision of electrical services to other
Tenants or which exceeds normal usage for Tenants in the Building,  Landlord may
refuse to grant its consent or may condition  its consent upon  Tenant's  paying
the cost of  installing  and  providing any  additional  facilities  required to
furnish  such excess  power to the  Premises  and upon the  installation  in the
Premises of electric  current  meters to measure the amount of electric  current
consumed,  Tenant  will  pay for  the  cost of  such  meter(s)  and the  cost of
installation, maintenance and repair thereof, as well as for all excess electric
current  consumed at the rates charged by the applicable  local public  utility,
plus a reasonable  amount to cover the additional  expenses incurred by Landlord
in keeping  account of the  electric  current so  consumed;  and (c) if Tenant's
increased  electrical  requirements will materially affect the temperature level
in the Premises or the  Building,  Landlord's  consent may be  conditioned  upon
Tenant's  requirement  to pay such  amounts as will be  incurred  by Landlord to
install  and  operate  any  machinery  or  equipment  necessary  to restore  the
temperature  level  to that  otherwise  required  to be  provided  by  Landlord,
including but not limited to the cost of  modifications  to any air conditioning
system.  Landlord will not, in any way, be liable or  responsible  to Tenant for
any loss or damage or expense  which  Tenant  may incur or  sustain  if, for any
reasons beyond Landlord's  reasonable control,  either the quantity or character
of  electric  service is  changed  or is no longer  available  or  suitable  for
Tenant's  requirements.  Tenant  covenants that at all times its use of electric
current  will never exceed the  capacity of the  feeders,  risers or  electrical
installations  of the Building.  If  submetering  of electricity in the Building
will not be  permitted  under  future  laws or  regulations,  the  Rent  will be
equitably and periodically adjusted to include an additional payment to Landlord
reflecting  the cost to Landlord  for  furnishing  electricity  to Tenant in the
Premises.  Any amounts  which Tenant is required to pay to Landlord  pursuant to
this section are due within ten (10)  business days after demand by Landlord and
are Additional Rental.

2.  Landlord  is not  liable  for  any  failure  to  furnish,  stoppage  of,  or
interruption  in furnishing  any of services or utilities,  when such failure is
caused by accident,  breakage, repairs, strikes, lockouts, labor disputes, labor
disturbances,   governmental  regulation,  civil  disturbances,   acts  of  war,
moratorium or other  governmental  action,  or any other cause beyond Landlord's
reasonable  control,  and, in such event,  Tenant is not entitled to any damages
nor will any failure or interruption abate or suspend Tenant's obligation to pay
Base Monthly Rental and Additional  Rental or be construed as a constructive  or
other eviction of Tenant.  Further,  in the event any governmental  authority or
public utility promulgates or revises any law, ordinance, rule or regulation, or
issues  mandatory  controls,  or  voluntary  controls  relating  to  the  use or
conservation  of energy,  water,  gas,  light or  electricity,  the reduction of
automobile or other emissions, or the provision of any other utility or service,
Landlord  may take any  reasonably  appropriate  action to comply with such law,
ordinance,  rule,  regulation,  mandatory  control or  voluntary  guideline  and
Tenant's  obligations  hereunder  will not be  affected  by any such  action  of
Landlord. The parties acknowledge that safety and security devices, services and
programs provided by Landlord,  if any, while intended to deter crime and ensure
safety,  may not in given  instances  prevent theft or other  criminal  acts, or
ensure  safety of persons  or  property.  The risk that any  safety or  security
device,  service or program  may not be  effective,  or may  malfunction,  or be
circumvented  by a  criminal,  is assumed  by Tenant  with  respect to  Tenant's
property and interests,  and Tenant must obtain insurance coverage to the extent
Tenant  desires  protection  against such  criminal  acts and other  losses,  as
further  described in this Lease.  Tenant agrees to cooperate in any  reasonable
safety or security  program  developed  by  Landlord  or  required  by Law.  The
foregoing notwithstanding, in the event that such services are interrupted for a
period of more than ten (10)  consecutive  days and such  interruption  prevents
Tenant  from  conducting  its  business  at the  Premises,  Tenant's  Base  Rent
hereunder will be abated for the period of interruption.

<PAGE>

16.  Personal  Property  Taxes.  Tenant is  responsible  for and will pay before
delinquency  all taxes and other  governmental  charges and  impositions  levied
against Tenant, Tenant's improvements,  fixtures,  trade fixtures,  alterations,
furniture,  fixtures,  equipment, or other personal property, Tenant's leasehold
interest,  the Rent or other charges payable by Tenant,  any business carried on
at the Premises, or in connection with the use or occupancy thereof,  including,
without limitation,  City of San Francisco Gross Receipts Taxes,  payroll taxes,
any  general  or  special  assessments,  levies,  fees or  charges,  transit  or
transportation  charges,  housing  subsidies  and/or  housing fund  assessments,
possessory  interest  taxes,  business or license  taxes or fees,  job  training
subsidies and/or assessments, or open space charges, irrespective of whether any
of the foregoing is assessed or  designated as a real or personal  property tax,
and  irrespective  of whether  any of the  foregoing  is  assessed to or against
Landlord or Tenant.  Should any of the foregoing be applied in any manner to the
real property  taxes levied on the Building or  appurtenances  thereto,  Tenant,
upon demand,  will pay such personal property taxes to Landlord who in turn will
pay the same to the property tax collector.

17.      Maintenance.

1. Upon  occupancy,  Tenant  accepts the  Premises as being in good and sanitary
order, condition and repair. Tenant, at its sole cost and expense, will keep the
Premises  and every part  thereof in good and  sanitary  condition  and  repair,
damage thereto by fire,  earthquake,  act of God or the elements excepted unless
caused  by  Tenant's  negligence  or  willful  act.  Tenant  agrees to carry out
promptly all maintenance  that at any time may become  necessary to put and keep
the Premises in as good and sanitary a condition as when received by Tenant from
Landlord,  reasonable  wear and  tear  excepted,  and,  the  preceding  sentence
notwithstanding,  to replace  immediately  all  interior  glass now or hereafter
installed  in the  Premises,  however  broken.  Maintenance  or repair  required
because of  burglary or  vandalism  will be the sole  responsibility  of Tenant,
unless  required as a result of  Landlord's  grossly  negligent  or  intentional
misconduct.

2. If,  during  the Term,  because  of the  Tenant's  use of the  Premises,  any
alterations or improvements to the Premises are required by law,  whether or not
such law was within the  contemplation  of the parties  upon  execution  of this
Lease,  Tenant will be obligated to make such alterations or improvements at its
sole  cost  and  expense.  However,  if  such  alterations  are  required  on  a
Building-wide  basis,  and are not  related to  Tenant's  particular  use of the
Premises, Tenant's obligation under this Paragraph B will be limited to $5,000.

3. Tenant hereby waives all rights under,  and the benefits of,  Subsection 1 of
Section 1932 and Sections 1941 and 1942 of the California  Civil Code, and under
any similar law, permitting Tenant to make repairs at the expense of Landlord or
to terminate a lease by reason of the condition of the leased premises.

18. Restoration of Premises. Tenant agrees that upon the expiration of the Term,
the  earlier   termination  of  the  Lease  for  whatever  reason,  or  Tenant's
abandonment of the Premises,  whichever  occurs first,  Tenant will surrender or
leave the Premises in the same condition as when received,  reasonable  wear and
tear  excepted,  and damage by fire,  earthquake,  acts of God, or the  elements
excepted, unless caused by Tenant's negligent or willful act or omission, and if
Tenant  has  made  any  alteration  or  improvement  of  the  Premises,  without
Landlord's consent as required by this Lease, Tenant will effect the restoration
of the  Premises  unless  Landlord  has  expressly  set forth in writing  that a
particular  alteration or improvement  will not be removed.  As used  throughout
this   paragraph,   "restoration"   means   the   reconstruction,    rebuilding,
rehabilitation,  and repairs necessary to return altered,  improved,  or damaged
portions of the Premises and other damaged property in, on or about the Premises
to  substantially  the same  physical  condition in which they were  immediately
before the alteration, improvement, or damage.

<PAGE>

19.  Entry by  Landlord.  Landlord  reserves  the right and Tenant  will  permit
Landlord  and its  authorized  representatives  to  enter  the  Premises  at all
reasonable  times for  purposes of (i)  inspecting,  performing  maintenance  or
making  alterations  of the  Premises  or any  other  portion  of the  Building,
including the erection and maintenance of such  scaffolding,  canopies,  fences,
and  props  as  Landlord  may  reasonably  require;   (ii)  posting  notices  of
nonresponsibility or nonliability for alterations or repairs; (iii) placing upon
the  Premises  any usual or  ordinary  "for  rent"  signs;  or (iv)  showing  or
submitting  the  Premises to  prospective  purchasers  or tenants,  all of which
actions  Landlord may take without any  abatement of Rent.  Tenant hereby waives
any claim for damages for any injury or inconvenience  to or interferences  with
Tenant's business, any loss of occupancy or quiet enjoyment of the Premises, and
any other loss occasioned by such entry. Landlord will use reasonable efforts in
order that the  entrance  to the  Premises  will not be blocked by the making of
such  alterations or the performing of such maintenance and that the business of
Tenant  will  not  thereby  be  interfered  with  unreasonably.  For each of the
aforesaid purposes,  Landlord will at all times have and retain a key with which
to unlock all of the doors in, upon, and about the Premises,  excluding Tenant's
vaults,  safes,  file  cabinets and desks,  and Landlord may use any means which
Landlord  deems  proper to open said  doors in an  emergency  in order to obtain
entry to the Premises.  Any entry to the Premises obtained by Landlord by any of
said means,  or  otherwise,  will not under any  circumstances  be  construed or
deemed to be a forcible or unlawful entry into or a detainer of the Premises, or
an eviction of Tenant from the Premises or any portion thereof. Landlord has the
right to make  alterations to or demolish the Building or erect other  buildings
on the real property adjacent thereto. Tenant will not in such event be entitled
to  any  direct  or  consequential  damages  for  any  damage  or  inconvenience
occasioned  thereby,  but Landlord will use its best efforts to accomplish  such
work in such a manner as to inconvenience  Tenant as little as possible.  In the
event Tenant is deprived of the use of the Premises by reason of the  demolition
of the Building,  this Lease will terminate without any liability of Landlord to
Tenant.

20.  Estoppel  Certificates.  At any time not more  than ten (10)  days  after a
request is received from Landlord, Tenant will execute,  acknowledge and deliver
to  Landlord,  or to such party as Landlord  may  designate a written  statement
certifying the date of commencement of this Lease, that this Lease is unmodified
and in full force and effect (or, if there have been any  modifications  of this
Lease,  that the Lease is in full force and effect as  modified  and stating the
date and nature of the modification or  modifications),  that Landlord is not in
default  under this Lease (or,  if there is any  claimed  default,  stating  the
nature and extent thereof),  that Tenant is not in default under this Lease (or,
if Tenant is in default,  specifying the nature and extent thereof), the current
amounts of and the dates up to which  Rent has been  paid,  the period for which
Rent and other charges have been paid in advance,  and any additional matters or
information  that may  reasonably  be  requested  by  Landlord.  It is expressly
understood  and  agreed  that  any such  statement  delivered  pursuant  to this
paragraph may be relied upon by any prospective purchaser of the Building or any
lender,  prospective  lender,  or any  assignee or  prospective  assignee of any
lender,  and by any third person.  Tenant's  failure to deliver such a statement
within said 10-day period will be conclusive  against Tenant (i) that this Lease
is in full force and effect,  without modifications except as may be represented
by  Landlord,  (ii)  that  there  are  no  defaults  in  Landlord's  performance
hereunder,  and  (iii)  that not more  than one  month's  Rent has been  paid in
advance.

<PAGE>

21.  Abandonment of Premises.  Tenant will not vacate or abandon the Premises at
any time  during  the Term.  If  Tenant  abandons,  vacates  or  surrenders  the
Premises,  or is  dispossessed  by process  of law or  otherwise,  any  personal
property belonging to Tenant and left in or on the Premises will be deemed to be
abandoned,  except as to such property as may be mortgaged to Landlord,  and, at
the option of  Landlord,  such  property may be removed and stored in any public
warehouse  or  elsewhere  at the  cost of and for the  account  of  Tenant,  and
Landlord  shall have a lien  thereupon  for the costs of removal  and storage as
well as all other sums which Tenant owes Landlord.  At Landlord's  option,  such
property  shall  conclusively  be  deemed  to have  been  conveyed  by Tenant to
Landlord as if by bill of sale without payment by Landlord.

22.  Removal of Trade  Fixtures  of Tenant at End of Term.  If Tenant  fully and
faithfully  performs all of Tenant's  obligations  under this Lease, then Tenant
may remove,  and upon the request of Landlord will remove, at Tenant's sole cost
and expense,  all trade fixtures and movable furniture installed in, on or about
the  Premises by Tenant,  provided  that such  removal  may be effected  without
damage to the Premises.

23.  Surrender  of Lease.  The  voluntary  or other  surrender  of this Lease by
Tenant, accepted by Landlord, or the mutual cancellation hereof, will not work a
merger and, at the option of Landlord, will either terminate any or all existing
subleases or  subtenancies or operate as an assignment to Landlord of any or all
of such subleases or subtenancies.

24.  Holding  Over.  Any holding over after the  expiration of the Term with the
written  consent of Landlord  will be  construed  to be a tenancy  from month to
month at a rent equal to 150% of the Rent  payable  under this Lease  during the
last full month before the date of such  expiration,  provided that Landlord may
specify a higher rent upon thirty (30) day's  notice.  In addition,  Tenant will
indemnify  Landlord and hold it harmless  from and against all  damages,  costs,
claims,  causes  of  action,  liabilities,  and  expenses  (including,   without
limitation  attorneys'  fees and  expenses  and claims for  damages by any other
person  to whom  Landlord  may  have  leased  all or any  part  of the  Premises
effective  upon  such  expiration)  sustained  by  Landlord  by  reason  of such
retention.

25.      Grace Period.

1. No default or breach of any of the terms,  covenants  or  conditions  of this
Lease will exist on the part of Landlord until (i) Tenant serves Landlord with a
notice specifying with  particularity the default or breach alleged to exist and
(ii) Landlord fails to perform or observe said term,  covenant or condition,  as
the case may be,  within a reasonable  time not to exceed thirty (30) days after
receiving the notice.

2. If the Landlord is delayed or prevented  from  performing the act required by
reason of acts of God, strikes,  lockouts, labor troubles,  inability to procure
materials,  restrictive  laws, or any other cause beyond  Landlord's  reasonable
control, the performance of the act will be excused for the period of the delay,
and the  period for the  performance  of the act will be  extended  for a period
equivalent to the period of such delay.

     26. Landlord's  Remedies Upon Default.  Landlord has the following remedies
if Tenant  breaches or defaults on this Lease.  These remedies are not exclusive
but are in addition to any rights and remedies now or later allowed by law or in
equity.

<PAGE>

1. Landlord may either  terminate  Tenant's right of possession to the Premises,
thereby  terminating  this Lease,  or have this Lease continue in full force and
effect with Tenant having the right of  possession to the Premises.  If Landlord
elects to terminate Tenant's right of possession to the Premises,  then Landlord
will  have  the  immediate  right of entry to and may  remove  all  persons  and
property from the  Premises.  Such property so removed may be stored in a public
warehouse  or  elsewhere  at the cost and for the  account of Tenant.  Upon such
termination  Landlord,  in addition to any other rights and remedies,  including
rights and remedies under  Subparagraphs  (1), (2) and (4) of Subdivision (a) of
Section  1951.2  of  the  California  Civil  Code,  or any  amendment  to or any
successor law of that section, will be entitled to recover from Tenant the worth
at the time of award of the amount by which the unpaid  Rent for the  balance of
the Term after the time of the award exceeds the amount of such rental loss that
the Tenant proves could be reasonably  avoided.  The amount Landlord may recover
under  Subparagraph  (4) of Subdivision  (a) of Section 1951.2 of the California
Civil Code will include,  without limitation,  the cost of recovering possession
of the  Premises,  expenses  of  reletting  (including  advertising),  brokerage
commissions and fees, costs of placing the Premises in good order, condition and
repair,  including  necessary  maintenance  and  restoration  of  the  Premises,
attorneys'  fees,  court  costs and costs  incurred  in the  appointment  of and
performance  by a receiver to protect the Premises or Landlord's  interest under
this  Lease.  The worth at the time of the award of the  amount  referred  to in
Subparagraph  (3) of Subdivision  (a) of Section 1951.2 of the California  Civil
Code will be computed by  discounting  such amount at the  discount  rate of the
Federal  Reserve Bank of San Francisco at the time of the award plus one percent
(1%).  The worth at the time of the award referred to in  Subparagraphs  (1) and
(2) of Subdivision  (a) of Section  1951.2 of the California  Civil Code will be
computed by allowing  interest at the maximum rate  permitted  by law.  Prior to
such  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.

2. Any proof by Tenant  under  Subparagraphs  (2) or (3) of  Subdivision  (a) of
Section  1951.2 of the  California  Civil Code of the amount of rental loss that
could be reasonably  avoided will be made in the following manner:  Landlord and
Tenant will each select a licensed real estate broker in the business of renting
property of the same type and Purpose as the Premises and in the same geographic
vicinity;  these two brokers will select a third  licensed real estate broker of
similar  qualifications;  the two brokers selected by the parties will determine
the amount of rental  loss that could be  reasonably  avoided for the balance of
the Term after the time of the award. The third broker will then decide which of
the two  brokers has made the better  determination  of the worth at the time of
the award, and his decision will be final and binding on the parties.

3. If  Landlord  elects to keep this Lease in full force and effect  with Tenant
retaining the right of possession to the Premises (notwithstanding the fact that
Tenant may have vacated or abandoned the Premises),  Landlord may enforce all of
its  rights  and  remedies  under  this  Lease or  allowed  by law or in  equity
including,  but not limited to, the right to recover the installments of Rent as
they  become due under this Lease;  additionally,  the  Landlord  has the remedy
described in California  Civil Code Section 1951.4 (lessor may continue lease in
effect after lessee's breach and abandonment and recover rent as it becomes due,
if  lessee  has  right  to  sublet  or  assign,   subject  only  to   reasonable
limitations).  Notwithstanding  any such  election to have this Lease  remain in
full force and effect,  Landlord may at any time  thereafter  elect to terminate
Tenant's right of possession to the Premises,  thereby  terminating  this Lease,
for any previous breach or default which remains uncured, or for any existing or
subsequent breach or default.  For purposes of Landlord's right to continue this
Lease in  effect  upon  Tenant's  breach  or  default,  acts of  maintenance  or
preservation  or efforts by Landlord to relet the Premises or the appointment of
a receiver on initiative of Landlord to protect its interest under this Lease do
not constitute a termination of Tenant's right of possession.

<PAGE>

4. If Landlord elects to keep this Lease in full force and effect, Landlord may,
as attorney-in-fact of Tenant,  sublet the Premises,  or any part thereof,  from
time to time and for such  tenant,  at such  rent,  and upon such  other  terms,
covenants and  conditions as Landlord in its sole  discretion may deem advisable
with the unqualified right to make alterations,  effect restoration, and perform
maintenance  to the  Premises.  Upon each such  subletting  (i)  Tenant  will be
responsible  for, in addition to Tenant's  indebtedness  to Landlord  other than
Rent due  hereunder,  the  costs  of such  subletting  and of such  alterations,
restoration  and maintenance  incurred by Landlord,  and the amount by which the
Rent hereunder for the period of such subletting (to the extent such period does
not exceed the Term hereof) exceeds the amount agreed to be paid as Rent for the
Premises for the period of such  subletting,  or (ii) at the option of Landlord,
rents received from such  subletting  will be applied:  first, to the payment of
Tenant's indebtedness to Landlord other than Rent due hereunder;  second, to the
payment of costs of such  subletting and of such  alterations,  restoration  and
maintenance; third, to the payment of Rent due and unpaid hereunder; and fourth,
the  residue,  if any, to be held by  Landlord  and applied in payment of future
Rent as the same becomes due  hereunder.  If Tenant has been  credited  with any
rent to be received by such  subletting  and such rent is not  promptly  paid to
Landlord by the  subtenant(s),  or if such rent  received  from such  subletting
during  any month is less than the Rent to be paid  during  that month by Tenant
hereunder, Tenant will pay any such deficiency to Landlord. Such deficiency will
be calculated and paid monthly on the date Rent is due and payable hereunder. No
taking possession of the Premises by Landlord,  as attorney-in-fact  for Tenant,
will be construed  as an election on  Landlord's  part to  terminate  this Lease
unless a notice of such  election is given to Tenant.  Notwithstanding  any such
subletting  without  termination  of  this  Lease,  Landlord  may  at  any  time
thereafter  elect  to  terminate  this  Lease  for  any  previous,  existing  or
subsequent breach or default.  At Landlord's option and application,  a receiver
for Tenant will be appointed to take  possession  of the  Premises,  to exercise
Landlord's right to sublet the Premises as  attorney-in-fact  for Tenant, and to
apply any rent collected from the Premises as provided herein.

     5. Nothing in this paragraph affects Landlord's right of to indemnification
for liability arising prior to the termination of the Lease for damage to person
or property.

6. If Tenant is in default in the performance of any term, covenant or condition
to be performed by it under this Lease,  then,  after notice and without waiving
or releasing  Tenant from the  performance of such term,  covenant or condition,
Landlord may, but will not be obligated to, perform the same, and, in exercising
any  such  right,  may pay  necessary  and  incidental  costs  and  expenses  in
connection  therewith.  All sums so paid by  Landlord,  together  with  interest
thereon  at the  maximum  rate  of  interest  allowed  by law,  will  be  deemed
Additional  Rent hereunder and will be payable to Landlord by Tenant on the next
rent-paying day.

7.  Rent not paid  when due  bears  interest,  in  addition  to any late  charge
provided hereunder, at the maximum rate of interest allowed by law from the date
due until paid.

8. No security or guaranty which may now or hereafter be furnished  Landlord for
the payment of the Base Rental or for  performance by Tenant of the other terms,
covenants or conditions of this Lease will in any way be a bar or defense to any
action in unlawful detainer,  for the recovery of the Premises, or to any action
which  Landlord  may at any  time  commence  for a breach  of any of the  terms,
covenants or conditions of this Lease.

<PAGE>

27.  Attorneys'  Fees on  Default.  If either  Landlord or Tenant  obtain  legal
counsel  or bring an action  against  the other for any  reason  relating  to or
arising out of this Lease,  the  unsuccessful  party will pay to the  prevailing
party its attorneys'  fees,  which will be payable whether or not such action is
prosecuted  to  judgment.   The  term  "prevailing   party"  includes,   without
limitation,  a party who  obtains  substantially  the relief  sought  whether by
compromise, settlement or judgment.

28.    Insolvency.  Any of the following is a breach of this Lease by Tenant and
a default hereunder:

1.      The appointment of a receiver to take possession of all or substantially
all of the assets of Tenant; or

2.      A general assignment by Tenant for the benefit of creditors; or

3.      Any action taken or suffered by Tenant under any insolvency, bankruptcy,
or reorganization act; or

4.      The admission by Tenant in writing of its inability to pay its debts as
they become due; or

5. The levying of  execution  upon any interest of Tenant in or under this Lease
or upon the  property  of Tenant  within the  Premises,  unless the same will be
bonded  against or  discharged  within  twenty (20) days  following  the levy or
within  five (5) days  prior  to the  proposed  sale  thereunder,  whichever  is
earlier; or

6. The attachment or garnishment of any interest of Tenant in, to, or under this
Lease or upon the property of Tenant in the  Premises,  unless it is  discharged
within twenty (20) days after the levy thereof.

      Upon any such event,  this Lease terminates five (5) days after receipt by
Tenant of notice of termination;  provided,  however,  that notwithstanding such
termination,  Landlord may enforce its remedies under  Paragraph 26 and provided
further  that  neither  such  termination  nor such  exercise of  remedies  will
terminate the right of Landlord or any lender to enforce any  indemnities  given
by  Tenant  under  this  Lease.  In no event  will  this  Lease be  assigned  or
assignable by reason of any voluntary or involuntary bankruptcy proceedings, nor
will any rights or privileges hereunder be an asset of Tenant in any bankruptcy,
insolvency, or reorganization proceedings, except at the election of Landlord so
to treat the same.  In the event this Lease is assumed and  assigned by Tenant's
trustee in bankruptcy,  Landlord will require that such assignee deposit with it
security  in an  amount  equal to  Landlord's  then  standard  security  deposit
requirements for similar tenants of the Building.

<PAGE>

29.      Assignment or Subletting.

1.  Tenant will not,  directly  or  indirectly,  voluntarily  or  involuntarily,
assign,  pledge,  encumber,  or  otherwise  transfer  this Lease or any interest
therein,  and will not sublet the  Premises or any part  thereof or any right or
privilege  appurtenant  thereto,  or permit  any other  person  (the  authorized
representatives of Tenant excepted) to occupy or use the Premises or any portion
thereof  (collectively  "assign") without first receiving the written consent of
Landlord.  Landlord agrees not to unreasonably withhold such consent, but may in
lieu of granting such consent  terminate this Lease or exercise its other rights
as hereinafter provided.  Any such assignment without Landlord's consent will be
void and  will,  at the  option of  Landlord,  constitute  a  default  hereunder
entitling Landlord to terminate this Lease and giving rise to all other remedies
available to Landlord for breach of this Lease. A consent to one assignment will
not be deemed to be a consent to any other or further assignment. This Lease and
any  interest  in it will not be  assignable  as to the  interest  of  Tenant by
operation of law without the prior written consent of Landlord.

2. If Tenant  contemplates  an action  under  Subparagraph  A,  Tenant will give
Landlord  forty-five (45) days' notice  thereof,  designating the terms proposed
and, if a sublease,  the term  thereof and space  proposed to be sublet.  Tenant
will also provide a current financial statement of any proposed assignee and any
further  information which Landlord may reasonably  request . Landlord may, upon
notice to Tenant  within  thirty (30) days after  receipt of Tenant's  notice of
intention to assign, (i) assign from Tenant any portion of the Premises proposed
by Tenant to be assigned,  for the term for which such portion is proposed to be
assigned,  but at the same Rent as Tenant is required  to pay to Landlord  under
this Lease for the same space,  computed on a pro rata share of rentable  square
footage  basis,  (ii)  terminate this Lease as it pertains to the portion of the
Premises so proposed by Tenant to be assigned,  (iii) approve Tenant's  proposal
to assign,  subject to Landlord's  subsequent  written  approval of the specific
agreement between Tenant and the proposed assignee, or (iv) terminate this Lease
in its entirety if, after said  subleasing or assignment,  Tenant will have then
subleased  or  assigned  more than 25% of the  original  square  footage  of the
Premises. Upon acceptance of the offer to terminate this Lease as it pertains to
the portion of the  Premises  Tenant seeks to assign or upon  acceptance  of the
offer to terminate this Lease in its entirety, this Lease (in its entirety or as
it pertains to said portion, as the case may be) will terminate as of the end of
the calendar month in which such notice of acceptance is given to Tenant. Tenant
must then  vacate and  surrender  all or such  portion of the  Premises  and the
provisions of this Lease  applicable to termination  upon expiration of the Term
will apply to all or to such portion of the Premises.  Such termination will not
relieve  Tenant from  liability for any breach or default with respect to all or
such portion of the Premises occurring prior to termination.

<PAGE>

3. For  purposes  of this  paragraph,  the  following  events  will be deemed an
assignment of this Lease or a sublease of the Premises, as appropriate:  (i) the
issuance  of an equity  interest  (whether a stock or  partnership  interest  or
otherwise) to any person or group of related persons, in a single transaction or
a series  of  related  or  unrelated  transactions  such  that,  following  such
issuance,  such person or group will have control of Tenant;  or (ii) a transfer
of  control  in a  single  transaction  or a  series  of  related  or  unrelated
transactions  (including,  without  limitation,  by  consolidation,  merger,  or
reorganization),  except  that  the  transfer  of the  outstanding  stock of any
corporate Tenant by persons or parties other than "insiders"  within the meaning
of the  Securities  Exchange  Act of 1934,  as amended,  through any  recognized
national or international  securities exchange or through the "over-the-counter"
market  will not be included in the  determination  of whether  control has been
transferred.  For purposes of this  paragraph,  "control" will mean ownership of
not less than 50% of the voting stock of a  corporation  or of not less than 50%
of the legal or equitable interest in any other business entity.

4.  A  corporate  Tenant  will  have  the  right  in  the  event  of  a  merger,
consolidation,  reorganization,  or  recapitalization,  whether  or  not  Tenant
survives as the surviving corporation,  to assign or transfer this Lease to such
surviving corporation;  provided,  however, such right of assignment or transfer
will be limited to an assignee  whose net worth is equal to or greater  than the
net worth of Tenant at the time of such  assignment  or  transfer.  In the event
Tenant  contemplates  making an  assignment  or  transfer  as  provided  in this
subparagraph,  Tenant  will give  thirty  (30) days'  notice to  Landlord of its
intention to make such assignment or transfer and will furnish Landlord with all
pertinent  information  as  to  the  net  worth  of  the  proposed  assignee  or
transferee.

5. In all events, if this Lease is assigned other than to Landlord,  Tenant will
continue to be primarily  liable under this Lease and the assignee  will execute
an agreement by which it assumes and agrees to be jointly and  severally  liable
for the complete performance by Tenant of its obligations hereunder.

6. Tenant  irrevocably  assigns to Landlord,  as security for the performance of
Tenant's  obligations  under this Lease,  all rent from any assignment of all or
any part of the  Premises.  A  receiver  for  Tenant,  appointed  on  Landlord's
application,  may  collect  such rent and apply it toward  Tenant's  obligations
under this  Lease  except  that,  until the  occurrence  of an act of default by
Tenant, Tenant will have the right to collect such rent.

7. In no event may  Tenant  assign  this Lease or sublet  the  Premises,  or any
portion thereof, to any then-existing or prospective tenant of the Building.  In
addition,  neither  Tenant  nor any  other  person  having  an  interest  in the
possession,  use, occupancy,  or utilization of the Premises will enter into any
lease, sublease, license,  concession, or other agreement for use, occupancy, or
utilization  of space in the Premises which provides for rental or other payment
for such use,  occupancy,  or  utilization  based in whole or in part on the net
income  or  profits  derived  by any  person  from the  property  leased,  used,
occupied,  or utilized  (other  than an amount  based on a fixed  percentage  or
percentages  of  receipt  or  sales)  and any such  purported  lease,  sublease,
license,  concession, or other agreement is void and ineffective as a conveyance
of any right or interest in the possession,  use,  occupancy,  or utilization of
any part of the Premises.

<PAGE>

8. Tenant  will pay to  Landlord  the amount of  Landlord's  reasonable  cost of
processing every proposed assignment (including, without limitation, the cost of
attorneys' and other professional fees and the administrative,  accounting,  and
clerical time of Landlord), and the amount of all reasonable direct and indirect
expenses  as  well  as a  minimum  fee to  Landlord  of $500  arising  from  any
assignee's or subtenant's taking occupancy (including,  without limitation,  the
expenses of freight  elevator  operation  for the moving of  furnishings,  trade
fixtures and other personal property,  security service, janitorial and cleaning
service, and rubbish removal service).  Notwithstanding anything to the contrary
contained in this Lease, Landlord will have no obligation to process any request
for its consent to assignment or sublease prior to Landlord's receipt of payment
by Tenant of the  amount of  Landlord's  estimate  of the  processing  costs and
expenses and all other  direct and  indirect  costs and expenses of Landlord and
its authorized representatives arising from such matter.

9. If Landlord consents to any assignment or subletting,  sixty-six (66) percent
of the amount by which all  consideration  received by Tenant in connection with
such assignment or subletting, whether denominated as rent or otherwise, exceeds
the  consideration  which Tenant is  obligated to pay Landlord  under this Lease
will be paid to Landlord  promptly  after receipt as  additional  Rent under the
Lease without affecting or reducing any other obligation of Tenant hereunder. If
less than the entire Premises is assigned or sublet, Tenant's rental obligations
shall be  prorated  based upon the  amount of space  assigned  or  sublet.  (For
example, if Tenant was leasing space at $3.00 per rentable square foot per month
and  subleased  four (4) offices in the  Premises,  containing  a total of 1,000
rentable  square feet,  for $4,000 per month,  Tenant would owe the Landlord the
sum of $666.00 per month,  calculated  as follows:  Sublease rent of $4000 minus
Tenant's  prorated  rent for that space of $3000  (1,000 sq.  ft.  sublet  times
$3.00/sq. ft. times .66).

30.  Transfer  by  Landlord  - Release  from  Liability.  If  Landlord  sells or
transfers the Building, or assigns its interest as Landlord in this Lease, then,
from the effective date of such sale,  assignment or transfer,  Landlord will be
released from all further  liability to Tenant,  express or implied,  under this
Lease, and Tenant agrees to look solely to the successor in interest of Landlord
in and to the  Building  or this Lease,  except as to any  matters of  liability
based upon  Landlord's  action prior to transfer or that have accrued and remain
unsatisfied as of the date of such sale,  assignment or transfer. It is intended
that  the  covenants  and  obligations  contained  in this  Lease on the part of
Landlord  will be binding  upon  Landlord  and its  successors  and assigns only
during their respective  periods of ownership of the fee or leasehold estate, as
the case may be. If any  security  is given by Tenant  to  secure  the  faithful
performance  of all or any part of the terms,  covenants and  conditions of this
Lease on the part of Tenant,  Landlord  may transfer and deliver the security to
the successor in interest of Landlord, and thereupon Landlord will be discharged
from any further  liability  in reference  thereto.  Landlord may enter into any
transaction described in this paragraph without the consent of Tenant.

<PAGE>

31. Damage. If the Premises or the Building is damaged from any cause covered by
Landlord's  standard  fire  and  extended  coverage  insurance,   Landlord  will
forthwith  repair  such damage  provided  the cost of repair does not exceed the
insurance  proceeds and  provided  further such repairs can be made within sixty
(60) days after such  damage  occurs.  This Lease will  remain in full force and
effect  during the period such  repairs are being made.  Such damage will not in
any way void or render voidable this Lease or any provision hereof, and provided
such damage was not caused by Tenant's  negligent or willful act, Tenant will be
entitled to a proportionate  reduction of Rent while such repairs are being made
in an amount that is in the same  proportion to the Rent as the rentable area of
the portion of the Premises so damaged  bears to the total  rentable area of the
Premises.  If such  damage  was  caused by any risk not  covered  by  Landlord's
insurance,  or if the cost of repairs  exceeds the insurance  proceeds  payable,
Landlord may, at its option, make such repairs, provided the repairs can be made
within sixty (60) days after such damage occurs,  and, in such event, this Lease
will remain in full force and effect and will be neither void nor voidable,  but
Tenant will be entitled to a proportionate  reduction of Rent while such repairs
are being made in an amount  that is in the same  proportion  to the Rent as the
rentable  area of the  portion of the  Premises  so  damaged  bears to the total
rentable area of the Premises.  If Landlord elects not to make repairs it is not
obligated to make, or if such repairs  cannot be made within the 60-day  period,
this Lease may be terminated  by either party upon notice and without  liability
to the other party.  If either Landlord or Tenant gives notice of termination as
provided  herein,  this Lease and all  interests of Tenant in the Premises  will
terminate  on  the  date  specified  in  the  notice.  Landlord  will  under  no
circumstances  be  required  to repair  any  damage by fire or any other  cause,
whether of a similar or  dissimilar  nature,  to the property of Tenant.  Tenant
hereby  specifically  waives the  provisions of Section 1932,  Subdivision 2 and
Section  1933,  Subdivision  4, of the  California  Civil Code. In the event the
Building is damaged to the extent of more than twenty  percent (20%) of the then
replacement  cost  thereof,  Landlord  (or  Tenant if  Tenant  will be unable to
conduct its business on the Premises for more than sixty (60) consecutive  days)
may elect to terminate  this Lease,  whether the Premises are damaged or not and
without  liability  to Tenant.  A total  destruction  of the  Premises or of the
Building will terminate this Lease without liability to Tenant.

32.      Condemnation.

1. As used in this Lease,  "condemn" is  coextensive  with the phrase  "right of
eminent  domain",  i.e.,  the right of people or government to take property for
government or public use, and will include the intention to condemn expressed in
writing as well as the filing of any action or proceeding for condemnation.

2. If any action or proceeding is commenced for the condemnation of the Building
or any part thereof, or if Landlord is advised in writing by any agency,  entity
or body having the right or power of  condemnation  of its  intention to condemn
the same, then Landlord may:

(1) Without any  obligation  or liability to Tenant,  and without  affecting the
validity and existence of this Lease other than as hereinafter  provided,  agree
to sell or  convey to the  condemnor  the part or  portion  of the  Premises  or
Building  sought by the condemnor  free from this Lease and the rights of Tenant
hereunder. Such agreement may be made without first requiring that any action or
proceeding  be  instituted,  or if such  action  or  proceeding  will  have been
instituted,  without  requiring  any trial or hearing  thereof,  and Landlord is
expressly empowered to stipulate to judgment therein.

<PAGE>

(2)      Terminate this Lease and all rights of Tenant hereunder.

(3)  Continue  this  Lease  in  full  force  and  effect,   provided  that  such
condemnation  does  not  result  in a  taking  of the  Premises.  If this  Lease
continues  in full  force  and  effect  and by  reason  of the  condemnation  an
alteration  of  the  Building  is  required,   and  such  alteration  materially
interferes with Tenant's business in the Premises,  then Tenant will be entitled
to a  reasonable  abatement  in Rent during the period of such  modification  or
alteration to the extent such work interferes with Tenant's business.

3. If a portion of the Premises is  permanently  condemned  and taken,  and such
condemnation and taking  materially  affects Tenant's  business in the Premises,
then Tenant will have the option of either  terminating  all of its  obligations
under this Lease or continuing  this Lease in full force and effect with respect
to such portion of the Premises not taken.  In such latter  event,  Rent for the
remainder  of the Term will be  reduced  in the  proportion  which the  rentable
square footage of the Premises taken bears to the total rentable  square footage
of the original Premises.

4. If, as a result of any such condemnation proceedings, a leasehold interest or
right of possession only is so condemned or taken for a period of time less than
the then  unexpired  Term of this Lease,  this Lease will continue in full force
and effect and any  condemnation  award will be payable to Landlord  and will be
credited by Landlord against the Rent payable by Tenant for said period.  If the
amount  received by Landlord is in excess of said Rent,  Tenant will be entitled
to receive such excess,  and, if the amount so received by Landlord is less than
said Rent,  then Tenant will pay the amount of such  deficiency to Landlord,  if
such condemnation is for a period of time extending beyond the expiration of the
Term of this Lease,  the foregoing  provisions will apply only up to the date of
expiration of the Term. Upon said  expiration,  Landlord will receive all awards
thereafter  payable,  and no  accounting  will be made to Tenant for such period
extending beyond said expiration.

5.  All  compensation  and  damages  awarded  for the  taking  of the  Premises,
Building,  or any portion or portions thereof,  will, except as otherwise herein
provided,  belong to and be the sole  property of Landlord,  and Tenant will not
have any  claim or be  entitled  to any  award  for  diminution  in value of its
leasehold  interest  hereunder  or for the value of any  unexpired  Term of this
Lease; provided, however, Tenant will be entitled to any separate award that may
be made for the  taking of or damage  to,  or on  account  of any cost or damage
Tenant may sustain in the  removal of,  Tenant's  merchandise,  fixtures,  trade
fixtures, equipment and furnishings.

1.

6. If this Lease is terminated,  in whole or in part, under this paragraph,  all
Rent and other charges payable by Tenant to Landlord  hereunder and attributable
to the  Premises  taken will be paid up to the date upon which  actual  physical
possession  will be taken by the  condemnor,  and the parties will  thereupon be
released from all further liability in relation thereto.

<PAGE>

33. Subordination to Encumbrances.  This Lease, and the leasehold estate created
hereby,  is at all times subject to and  subordinate to any lien or encumbrance,
and  replacements  thereof,  in any amount  whatsoever now existing or hereafter
placed on or against the  Building or any part  thereof,  or against  Landlord's
interest or estate therein,  without the necessity of having further instruments
executed  on the part of  Tenant  to  effectuate  such  subordination.  However,
Landlord  or any lender may elect to make this Lease  prior and  superior to any
lien and  encumbrance  placed or to be placed by  Landlord  upon or against  the
Premises or Building, or any part thereof, which election will, of and by itself
and without further notice to or act or agreement of Tenant, make this Lease and
the estate created hereby prior and superior to any lien or encumbrance, whether
presently existing or hereinafter created. Notwithstanding the foregoing, Tenant
covenants and agrees to execute and deliver upon demand such further instruments
evidencing  such  superiority  or  subordination  of this Lease to such liens or
encumbrances  as may be  required  by  Landlord  or any  lender.  Tenant  hereby
irrevocably  appoints Landlord its  attorney-in-fact  to execute and deliver any
instrument  or  instruments  for or in the name of  Tenant  to  effectuate  such
actions.  In the event of foreclosure or exercise of any power of sale under any
lien or encumbrance  superior to this Lease or to which this Lease is subject or
subordinate,   Tenant  will,  upon  demand,  attorn  to  the  purchaser  at  any
foreclosure  sale or  pursuant to the  exercise  of any power of sale,  in which
event this Lease will not terminate, and Tenant will automatically be and become
the Tenant of said  purchaser  upon the same terms,  covenants and conditions as
are contained in this Lease. In the event of attornment, no lender shall be: (i)
liable  for any act or  omission  of  Landlord,  or  subject  to any  offsets or
defenses which Tenant might have against Landlord (prior to such lender becoming
Landlord under such  attornment),  (ii) liable for any security deposit or bound
by any  prepaid  Rent not  actually  received  by lender,  or (iii) bound by any
future  modifications  of this Lease not  consented  to by such  lender.  If, in
connection  with  Landlord's  obtaining  financing for the Building,  the lender
requests  reasonable  modifications  in  this  Lease  as  a  condition  to  such
financing,  Tenant will not  unreasonably  withhold,  delay or defer its consent
thereto,  provided that such  modifications  do not increase the  obligations of
Tenant hereunder or materially  adversely  affect the leasehold  interest hereby
created or Tenant's rights hereunder. In the event of any default on the part of
Landlord,  Tenant  will  file  notice by  registered  or  certified  mail to any
beneficiary  of a deed of trust  or  mortgagee  under a  mortgage  covering  the
Property or the Building whose address has been  disclosed to Tenant,  and offer
such beneficiary or mortgagee a reasonable  opportunity to cure the default, not
less than thirty (30) days in any event,  including time to obtain possession of
the Property or the Building by power of sale or a judicial foreclosure, if such
should prove necessary to effect a cure. Tenant shall execute such documentation
as Landlord may  reasonably  request from time to time,  in order to confirm the
matters set forth in this paragraph in recordable form.

34. Relocation.  Landlord shall have the right, at its option upon not less than
sixty  (60) days  prior  written  notice to Tenant,  to  relocate  Tenant and to
substitute  for  the  Premises  described  above  other  space  in the  Building
containing at least as much  rentable area as the Premises  described in Section
1A above. If Tenant is already in occupancy of the Premises, then Landlord shall
approve in advance the  relocation  expenses for purposes of  reimbursement  for
Tenant's reasonable moving and telephone  relocation expenses and for reasonable
quantities of new  stationery  upon  submission to Landlord of receipts for such
expenditures  incurred by Tenant.  The relocation  premises will then become the
Premises  hereunder  and the Rent  and  other  sums  payable  hereunder  will be
adjusted,  if  necessary,  to reflect  any  increase  or  decrease in the square
footage of the Premises.  Notwithstanding the foregoing,  if Tenant is unwilling
to accept any  relocation  premises  proposed by Landlord,  Tenant may terminate
this Lease upon written notice to Landlord  delivered  within ten days following
the date Tenant receives  Landlord's  notice as set forth above. In the event of
such  termination,  Tenant  will  vacate  the  Premises  within  sixty (60) days
following the date written  notice of  termination is delivered to Landlord and,
in such  event,  this  Lease will be  terminated  on the date the  Premises  are
vacated and possession thereof is returned to Landlord.

<PAGE>

35.      Communications and Computer Lines.

1. Tenant may, in a manner  consistent  with the provisions and  requirements of
this Lease,  install,  maintain,  replace,  remove or use any  communications or
computer  wires,  cable and related  devices  (collectively  the "Lines") at the
Building in or serving the Premises,  provided:  (a) Tenant  obtains  Landlord's
prior written consent, which consent may be conditioned as required by Landlord,
(b) if Tenant at any time uses any equipment that may create an  electromagnetic
field  exceeding the normal  insulation  ratings of ordinary  twisted pair riser
cable or cause  radiation  higher than normal  background  radiation,  the Lines
therefor  (including  riser cables) must be  appropriately  insulated to prevent
such excessive  electromagnetic fields or radiation, and (c) Tenant will pay all
costs in  connection  therewith.  Landlord  reserves  the right to require  that
Tenant remove any Lines which are installed in violation of these provisions.

2. Landlord may, but is not obligated to: (i) install new Lines at the Property,
and (ii) create additional space for Lines at the Property, and adopt reasonable
and uniform rules and regulations with respect to the Lines.

3.  Tenant  may not,  without  the prior  written  consent of  Landlord  in each
instance,  grant to any third  party a  security  interest  or lien in or on the
Lines, and any such security interest or lien granted without Landlord's written
consent is null and void.  Except to the extent arising from the  intentional or
negligent  acts of Landlord or Landlord's  agents or employees,  Landlord has no
liability for damages  arising from, and Landlord does not warrant that Tenant's
use of any Lines  will be free from the  following  (collectively  called  "Line
Problems'):  (x) any eavesdropping or wire-tapping by unauthorized  parties, (y)
any failure of any Lines to satisfy Tenant's requirements, or (z) any shortages,
failures, variations,  interruptions,  disconnections,  loss or damage caused by
the installation,  maintenance,  replacement,  use or removal of Lines by or for
other tenants or occupants at the Property. Under no circumstances will any Line
Problems be deemed an actual or constructive eviction of Tenant, render Landlord
liable to Tenant for abatement of Rent, or relieve  Tenant from  performance  of
Tenant's  obligations under this Lease.  Landlord will in no event be liable for
damages  by  reason  of  loss  of  profits,   business   interruption  or  other
consequential damage arising from any Line Problems.

36. Effect of Exercise of or Failure to Exercise Privilege. Neither the exercise
of nor failure to exercise any right, option, or privilege hereunder by Landlord
or Tenant will  exclude  such party from  exercising  any and all other  rights,
options,  or privileges  hereunder at any other time,  nor will such exercise or
nonexercise relieve Landlord or Tenant from their obligation to perform each and
every term, covenant and condition to be performed hereunder, or from damages or
other remedy for failure to perform or meet their obligations under this Lease.

37. Waiver. The waiver by Landlord or Tenant of any performance or breach of any
term,  covenant or condition  contained herein will not be deemed to be a waiver
of such term,  covenant or condition,  or of any subsequent or continuing breach
of the same, or of any other term,  covenant or condition  contained herein. Nor
will  any  custom  or  practice  that  may  arise  between  the  parties  in the
administration  of the provisions of this Lease be deemed a waiver of, or in any
way affect,  the right of Landlord or Tenant to insist upon the  performance  by
the other party hereto in strict  accordance  with the provisions of this Lease.
The subsequent acceptance of Rent hereunder by Landlord will not be deemed to be
a waiver of any preceding breach by Tenant of any term, covenant or condition of
this Lease other than Tenant's  breach in failing to pay the particular  Rent so
accepted regardless of Landlord's  knowledge of such additional preceding breach
at the time of the acceptance of such Rent.

<PAGE>

38. Labor  Relations.  Tenant will conduct its labor relations and its relations
with its  employees  so as to  attempt  to avoid  all  strikes,  picketing,  and
boycotts  of, on, or about the  Premises  or the  Building.  If any of  Tenant's
employees  strike or if a picket line or a boycott is established,  conducted or
carried  out  against  Tenant  or its  employees,  or any of  them,  Tenant,  on
Landlord's request, will forthwith cease operations in and upon the Premises and
remain closed until all disputes are settled.

39.  Notices.  All  notices  under  this  Lease  will be in  writing  personally
delivered  or sent by  United  States  certified  or  registered  mail,  postage
prepaid, return receipt requested, and addressed: if to Tenant, at the Premises,
or at such other  address as Tenant  may from time to time  designate  by giving
notice  thereof to Landlord  under this  paragraph;  and if to Landlord,  at the
Building  office,  or at such other  address as  Landlord  may from time to time
designate by giving notice thereof to Tenant under this paragraph. Mailed notice
will be deemed given 48 hours after the date of postmark.

40. Entire Agreement;  Amendments. This Lease represents the entire agreement of
the parties with respect to the parties' rights and duties under this Lease, and
no promises or representations, express or implied, whether written or oral, not
set forth  herein  will be binding  upon or inure to the  benefit of Landlord or
Tenant.   Tenant   acknowledges   that  neither   Landlord  nor  any  authorized
representative of Landlord,  or any other person purporting to act on Landlord's
behalf, has made any representation,  warranty, or statement with respect to the
amount of taxes that may or will be assessed  against the Premises,  the cost of
any insurance required to be maintained by Tenant hereunder, or any other matter
relating to this Lease that is not expressly covered in this Lease. With respect
to such matters,  Tenant is relying upon its own independent  investigation  and
sources of  information,  and Tenant  expressly  waives any right  Tenant  might
otherwise  have to rescind this Lease or to claim  damages by reason of Tenant's
misunderstanding  or mistake.  This Lease will not be amended or modified by any
oral  agreement,  either express or implied;  all  amendments and  modifications
hereof will be in writing and signed by both Landlord and Tenant.

41.  Landmark.  Tenant  acknowledges  that  the  Building  has been  declared  a
Historical  Landmark in the City and County of San  Francisco,  and agrees to be
bound by all of the applicable rules and regulations related thereto.

42. Light and Air. Tenant  covenants and agrees that no diminution of light, air
or view by any  structure  which may  hereafter  be erected  (whether  or not by
Landlord) will entitle Tenant to any reduction of Rent hereunder,  result in any
liability of Landlord to Tenant, or in any other way affect this Lease.

43.  Auctions and Signs.  Tenant will not conduct any auctions in, upon, or from
the Premises, affix any signs, awnings,  notices, or other advertising matter to
the  Premises,  or issue or  circulate  any  advertising  matter in the Building
without the prior written  consent of Landlord.  The design and character of any
such signs,  awnings,  notices, or other advertising matter will also be subject
to Landlord's prior written approval.

44.  Execution,  Recordation.  Submission of this  instrument for examination or
signature by Tenant does not  constitute a reservation of an option for a lease,
and  this  instrument  will  not be  effective  as a lease  or  otherwise  until
execution and delivery by both Landlord and Tenant.  Tenant will not record this
Lease or any memorandum of this Lease.

<PAGE>

45.  Tenant's  Authority.  If  Tenant  is  a  corporation,  partnership,  trust,
association,  or other entity,  Tenant and each person  executing  this Lease on
behalf  of  Tenant  hereby   covenant  and  warrant  that  (i)  Tenant  is  duly
incorporated or otherwise  established or formed and validly  existing under the
laws of its state of incorporation, establishment, or formation; (ii) Tenant has
and is duly  qualified  to do  business  in  California;  (iii)  Tenant has full
corporate,  partnership,  trust,  association,  or other  appropriate  power and
authority  to enter into this Lease and to perform all of  Tenant's  obligations
hereunder;  (iv) each person  (and all  persons if more than one signs)  signing
this Lease on behalf of Tenant is duly and validly  authorized to do so; and (v)
when  executed by both parties,  this Lease and all of the terms and  conditions
contained herein will be binding and enforceable against Tenant.

46.  Limitation  of  Tenant's  Remedies.  If Tenant  obtains a judgment  against
Landlord,  Tenant agrees to look solely to  Landlord's  interest in the Building
for recovery.

47. Time and  Applicable  Law. Time is of the essence of this Lease and each and
all of  its  provisions.  This  Lease  will  be  construed  and  interpreted  in
accordance  with the laws of the State of California.  Tenant,  Landlord and any
Guarantor,  consent to the exclusive  jurisdiction of any federal or state court
located  within the City and County of San  Francisco,  California and any other
court in which Landlord may initiate  equitable or legal  proceedings  which has
subject matter jurisdiction over the matter in controversy.  Borrower waives any
objection of forum non conveniens and venue.  Tenant, and any guarantor,  waives
personal service of process and consents to service of process being made in the
same manner as notices are given.

48. Name.  Tenant will not use the name of the  Building  for any purpose  other
than as the address of the business conducted by Tenant in the Premises.

49. Provisions are Covenants and Conditions.  All provisions,  whether set forth
herein as  covenants  or  conditions  on the part of  Tenant,  are  deemed  both
covenants and conditions.

50.  Severability.  The  unenforceability,  invalidity,  or  illegality  of  any
provision of this Lease,  for any reason,  will not render its other  provisions
unenforceable,  invalid,  or  illegal.  In such an  event,  this  Lease  will be
equitably  construed  as  if  it  did  not  contain  the  invalid,  illegal,  or
unenforceable  provision to the extent permitted by applicable law, it being the
intent of the parties  that this Lease will be enforced to the  greatest  extent
possible.

51.  Captions.  The table of contents and the headings to the paragraphs of this
Lease are for  convenience  only,  are not part of this Lease,  and will have no
effect on the construction or interpretation hereof.

52.  Successors.  This Lease,  subject to the  provisions as to  assignment  and
sublease,  apply to,  inure to the benefit  of, and bind the heirs,  successors,
administrators, executors, and assigns of the parties hereto.

53.  Relationship of Parties.  Neither anything  contained in this Lease nor any
acts of the parties  will be construed  to create any  relationship  between the
parties other than that of Landlord and Tenant.

<PAGE>

54.  Temporary  Space.  If the Premises are not ready for Tenant's  occupancy by
____________________,  then  Landlord  may, if  available,  provide  Tenant with
temporary  space in the Building to be used and occupied by Tenant,  at its sole
cost and expense, with the obligation to pay Rent at a discounted rate of 75% of
market as determined by Landlord in its sole and absolute discretion, until such
time as possession of the Premises is delivered to Tenant.

55.  Brokers.  Tenant  warrants and  represents  to Landlord  that it has had no
dealings  with any real  estate  broker or agent or any other party who could be
entitled to a commission or finder's fee in connection  with the  negotiation of
this lease, except as set forth in paragraph 1.L. above.

56.  Interpretation.  The parties  acknowledge  that each party has reviewed and
revised,  and has been provided the  opportunity  of its  respective  counsel to
review and revise,  this Lease,  and no rule of  construction to the effect that
any ambiguities are to be resolved against the drafting party may be employed in
the  interpretation or construction of this Lease, or any amendments or exhibits
hereto,  or any  other  document  executed  and  delivered  by  either  party in
connection herewith.

57. Force Majeure. Except as may be otherwise specifically provided herein, time
periods for performance under this Lease not involving the payment of money will
be  extended  for  periods  of  time  during  which  the  nonperforming  party's
performance  is  prevented  due to  circumstances  beyond the  party's  control,
including,  without limitation,  strikes,  embargoes,  governmental regulations,
inability to obtain permits, acts of God, war or other strife. Tenant waives its
right to terminate this Lease under Section 1932(l) of the California Civil Code
or under any similar law, statute or ordinance now or hereafter in effect.

58. Asbestos. Tenant acknowledges that it has been expressly disclosed to Tenant
by  Landlord's  Managing  Agent  that  the  Building  and the  Premises  contain
asbestos-containing  materials ("ACM").  The acknowledgment by Tenant of the ACM
does not in any manner  impose any  liability  or  responsibility  on Tenant for
removal,  treatment or abatement  of such ACM or any  responsibility  whatsoever
regarding  such  ACM  provided,  however,  that  Tenant  shall  comply  with all
applicable  laws and  regulations  in  connection  with any work in the Premises
including,  but not limited to, work which  requires  entry into the ceiling and
Exhibit F.

<PAGE>

59.  Accuracy of Tenant  Information.  Tenant  represents  and warrants that all
information  which  Tenant has  provided to Landlord  prior to execution of this
Lease is true and complete in all material  respects;  tenant further represents
and warrants that all information provided to Landlord by Tenant during the term
of the Lease shall be true and correct in all material respects.

      Executed as of the date first above written.

         LANDLORD:      _____________________________      100 BUSH CORPORATION

                                 By: Unreadable

                                 Its: President

                      TENANT: _____________________________

                           By: /s/ Jeffrey R. Hazarian
                          Its: Executive Vice President
                      (Chairman, President or Vice President)

                            By: /s/ James A. Robison
                                Its: Treasurer
                       (Secretary or Chief Financial Officer)

<PAGE>

                                    EXHIBIT A

                                   Floor Plan

<PAGE>

                                    EXHIBIT B

                          Tenant Improvement Agreement

                            (Landlord performs work)

         Landlord at its cost shall  provide  new  Building  Standard  paint and
carpet. Landlord shall install sprinklers and air conditioning in any portion of
the Premises that currently does not have them.

<PAGE>

                                    EXHIBIT C

                      Rules and Regulations of the Building

1.  Signs.  No sign,  placard,  picture,  advertisement,  name or notice will be
inscribed,  displayed,  printed,  or affixed on or to any part of the outside or
inside of the  Building  without  the prior  written  consent of  Landlord,  and
Landlord  will  have  the  right to  remove  any such  sign,  placard,  picture,
advertisement,  name, or notice  without notice to and at the expense of Tenant.
All  approved  signs or approved  lettering  on doors will be printed,  painted,
affixed or inscribed at the expense of Tenant by a person  approved by Landlord.
All signs  located in the interior of the Premises  shall be in good taste so as
not to detract  from the general  appearance  of the  Premises or the  Building.
Tenant  shall  not  place on or  permit to be  suspended  from the  ceiling  and
interior  walls of the  Premises  any  pennants,  banners or other  advertising.
Tenant  shall  not  solicit  business  in the  lobby or other  common  areas nor
distribute  any  advertising  matter  to, in or upon the  common  areas or other
tenants' premises nor use handbills,  balloons or other giveaways or promotional
items for  advertising at or around the Building.  In the event of the violation
of the  foregoing  by any  tenant,  Landlord  may  remove the same  without  any
liability,  and may charge the expense  incurred  in such  removal to the tenant
violating this rule.

2. Window Coverings.  Only the standard Building window coverings as established
by Landlord will be hung in the windows in the Premises and the use of any other
curtains,  blinds,  shades,  or  screens  attached  to or  hung  in or  used  in
connection  with  any  window  or door  of the  Premises  will  be  discontinued
immediately  by the  Tenant.  No  awning  will be  permitted  on any part of the
Premises.  Except as otherwise specifically approved by Landlord, all electrical
ceiling  fixtures along the perimeter of the Building must be fluorescent and of
a quality,  type,  design and bulb color approved by Landlord.  Tenant shall not
place  anything  or allow  anything  to be placed  near the glass of any window,
door, partition or wall which may appear unsightly from outside the Premises.

3. Building  Directory.  The bulletin board or directory of the Building will be
provided  exclusively  for the display of the name and location of tenants,  and
Landlord  reserves  the right to exclude  any other names  therefrom,  including
subtenants.  Additional names, if approved by Landlord,  and name changes are to
be paid by Tenant.

4. Hallways and Passages.  The sidewalks,  halls,  passages,  exits,  entrances,
elevators,  and  stairways in the Building  will not be  obstructed by Tenant or
used for any purpose other than for ingress to and egress from the Premises. The
halls, passages, exits, entrances,  elevators, stairways, balconies and roof are
not for the use of the general public, and the Landlord will in all cases retain
the right to control and prevent access thereto by all persons whose presence in
the  judgment of the  Landlord  will be  prejudicial  to the safety,  character,
reputation,  and interest of the Building and its tenants, provided that nothing
herein  contained  will be construed to prevent such access to persons with whom
the Tenant  normally deals in the ordinary  course of Tenant's  business  unless
such persons are engaged in illegal or improper activities.  The doors, windows,
glass lights,  and any lights or skylights  that reflect or admit light into the
halls or other places of the Building will not be covered or obstructed. Neither
Tenant nor any  employees  or  invitees  of Tenant  will go upon the roof of the
Building.

5. Locks. Tenant will not alter any lock nor install any new or additional locks
or any bolts on any door on the Premises.  Tenant will make sure that  Landlord,
at  all  times,  has a key to  each  lock  on the  Premises.  Tenant,  upon  the
termination  of the  tenancy,  will  deliver  to the  Landlord  the  keys to all
offices, rooms, and toilet rooms which will have been furnished to the Tenant or
which the  Tenant  will have  made.  Tenant  shall pay to  Landlord  the cost of
replacing  lost keys or of changing the lock or locks opened by such lost key if
Landlord shall deem it necessary to make such change.

<PAGE>

6. Restrooms. The toilet rooms, toilets, urinals, wash bowls, and other restroom
apparatus  within the Building  will not be used for any purpose other than that
for which they were constructed, and no foreign substance of any kind whatsoever
will be thrown  therein,  and the expense of any breakage,  stoppage,  or damage
resulting from the violation of this rule by Tenant or his employees or invitees
will be borne by Tenant.

7. Moving In and Out of Premises;  Heavy Equipment.  No furniture,  freight,  or
equipment of any kind will be brought  into the Building  without the consent of
Landlord, and all moving of the same into or out of the Building will be done at
such time and in such manner as Landlord will designate. All persons employed to
move furniture,freight or equipment of any kind must be approved by Landlord in
writing in advance.  No hand trucks except those  equipped with rubber tires and
side guards or such other  material  handling  equipment as Landlord may approve
will be used in any space,  including the common areas, of the Building,  either
by Tenant or by others.  No other vehicles of any kind will be brought by Tenant
into the Building or kept in, on or about the Premises. Tenant will not overload
the floor of the  Premises and  Landlord  will have the right to  prescribe  the
weight,  size, and position of all safes and other heavy equipment  brought into
the  Building and also the times and manner of moving the same in and out of the
Building.  Safes or  other  heavy  objects  will,  if  considered  necessary  by
Landlord,  stand on wood strips of such  thickness  as is  necessary to properly
distribute the weight. Landlord reserves the right to inspect all safes, freight
or other bulky  articles to be brought into the Building and to exclude from the
Building all safes,  freight or other bulky  articles which violate any of these
Rules and  Regulations or the Lease of which these Rules and  Regulations  are a
part.  Landlord  reserves  the right to prohibit or impose  conditions  upon the
installation  in the Premises of heavy objects which might overload the building
floors.  Landlord will not be responsible for loss of or damage to any such safe
or  property  from any  cause.  All  damage  done to the  Building  by moving or
maintaining  any such safe or other  property will be repaired at the expense of
Tenant.

1.
8.  Janitorial  Services  and  Cleaning.  Tenant  will not  employ any person or
persons  other than the  janitor of Landlord  for the  purpose of  cleaning  the
Premises unless otherwise agreed by Landlord. Except with the written consent of
Landlord,  no person or persons  other than those  approved by Landlord  will be
permitted to enter the  Building  for the purpose of cleaning  the same.  Tenant
will not cause any  unnecessary  labor by reason  of  Tenant's  carelessness  or
indifference in the  preservation of good order and  cleanliness.  Landlord will
not be responsible  to Tenant for any loss of property on the Premises,  however
occurring, or for any damage done to the effects of Tenant by the janitor or any
other  employee or any other  person.  Janitor  service  will  include  ordinary
dusting and cleaning by the janitor  assigned to such work, and janitor  service
will not be furnished on Saturdays, Sundays or holidays. Window cleaning will be
done only by Landlord's  employees,  and only between 6:00 a.m. and 5:00 p.m. No
article  will be hung out of any window of the  Building,  and  Tenant  will not
sweep or throw or  permit to be swept or thrown  from the  Premises  any dirt or
other substance into any of the corridors,  halls,  elevators,  or stairways, or
out of the doors or windows of the Building.

<PAGE>

9. Use of Premises.  Tenant will not mark, drive nails, screw, or drill into the
partitions, woodwork, or plaster, (except in connection with the installation of
normal  office wall art) or in any way deface the Premises or any part  thereof.
No loudspeaker or other similar device,  system, or apparatus which can be heard
or experienced  outside the Premises will, without the prior written approval of
Landlord,  be used in or at the  Premises.  No tenant or its  officers,  agents,
employees or invitees  shall mark,  paint,  drill into, or in any way deface any
part of the Premises or the Building. Tenant will not use, keep, or permit to be
used or kept any foul or noxious gas or substance in or on the Premises;  permit
any odor,  smell,  or vapor to escape from the Premises to other portions of the
Building;  or permit or suffer the  Premises  to be occupied or used in a manner
offensive or objectionable to the Landlord or other occupants of the Building by
reason of noise,  odors,  and/or vibrations,  or interfere in any way with other
tenants  or those  having  business  therein,  nor will any  animals or birds be
brought in or kept in or about the Premises or the Building.  No cooking will be
done or permitted  by Tenant on the  Premises,  (with the  exception of ordinary
office coffee  brewing and microwave  cooking) nor will the Premises be used for
the  storage of  merchandise,  for  washing  clothes,  for  lodging,  or for any
improper,  objectionable, or immoral purposes. Tenant will not use or keep in or
on the Premises or in the Building any kerosene,  gasoline,  or  inflammable  or
combustible fluid or material,  or use any method of heating or air conditioning
other than that  supplied by the  Landlord.  Tenant will close and securely lock
the windows, transoms, and doors of the Premises before leaving the Building and
observe  strict  care not to leave  windows  open  when it  rains.  Tenant  will
exercise care and caution that all water faucets or water apparatus are entirely
shut off before  Tenant or Tenant's  employees  leave the  Building and that all
electricity, gas, or air conditioning will likewise be carefully shut off, so as
to prevent  waste or damage.  For any default or  carelessness  Tenant will make
good all  injuries  sustained  by Landlord or other  tenants or occupants of the
Building.

10. Communications and Computer Equipment.  If Tenant desires telephone or other
communications or computer connections, the Landlord will direct electricians at
Tenant's expense as to where and how the wires are to be introduced.  No boring,
cutting or stringing  of wires will be allowed  without the consent of Landlord.
The location of telephones,  call boxes, and other office equipment and computer
or  communications  equipment  affixed to or installed  in the Premises  will be
subject to the approval of Landlord.  All costs of installation will be paid for
by Tenant.

11. Floor Coverings.  Tenant will not lay linoleum, tile, carpet, or other floor
covering  so that the same will be affixed to the floor of the  Premises  in any
manner except as approved by the  Landlord.  The expense of repairing any damage
resulting  from a  violation  of this rule or removal of any floor  covering  by
Tenant or his contractors, employees, or invitees will be borne by Tenant.

12. Deliveries. No furniture, packages, supplies, equipment, or merchandise will
be  received  in the  Building  or carried up or down in the  elevators,  except
between such hours and in such elevators as will be designated by the Landlord.

<PAGE>

13. Access Refused. On Sundays and legal holidays, and on other days between the
hours of 6:30 p.m.  and 6:00  a.m.,  access to the  Building,  or to the  halls,
corridors,  elevators,  or stairways in the Building, or to the Premises, may be
refused  unless the person  seeking  access  complies with the  requirements  of
Landlord's  security  personnel.  Landlord  shall furnish and approve  passes to
persons for whom any tenant  requests the same in writing.  Each tenant shall be
responsible  for all persons for whom he requests  passes and shall be liable to
Landlord  for all acts of such  persons.  In the case of  invasion,  mob,  riot,
public  excitement or other  commotion,  Landlord  reserves the right to prevent
access to the Building during the continuance of the same, by the closing of the
gates and doors or  otherwise,  for the safety of the tenants and others and the
protection of the Building and the property therein. Landlord will in no case be
liable for damages for any error with regard to the  admission  to or  exclusion
from the Building of any person.

14.   Soliciting  on  Premises.   Canvassing,   peddling,   soliciting  and  the
distribution  of  handbills or any other  written  materials in the Building are
prohibited, and Tenant will cooperate to prevent the same.

15.  Landlord's  Employees.  The requirements of Tenant will be attended to only
upon  application at the office of the Building.  Employees of Landlord will not
perform any work or do anything  outside of their  regular  duties  unless under
special  instructions  from the Landlord,  and no employee will admit any person
(Tenant or  otherwise)  to any office  without  specific  instructions  from the
Landlord.  The costs of Landlord's employees or agents performing services for a
particular  tenant and not for all  tenants  in  general  shall be billed to the
particular tenant together with a reasonable  administration  fee and payable as
additional rent.

16. Vending Machines. No vending machines or similar machines of any description
will be installed, maintained, or operated upon the Premises without the written
consent of the Landlord.

17. Building Name and Address. Landlord will have the right, exercisable without
notice  and  without  liability  to  Tenant,  to change  the name and the street
address of the Building.

18. Trash.  Tenant will store all of its trash and garbage  within its Premises.
No material will be placed in the trash boxes or receptacles if such material is
of such nature that it may not be removed or  disposed  of in the  ordinary  and
customary  manner of removing or  disposing of trash and garbage in the City and
County of San  Francisco.  All garbage and refuse  removal and disposal  will be
made only through entrances and elevators provided for such purposes and at such
times as Landlord will designate.  Landlord will have the right to charge Tenant
for the removal of any trash and garbage in excess of that resulting from normal
office use.

<PAGE>

19. Doors. All doors opening onto service corridors shall be kept closed, except
when in use for ingress and egress, and left locked when not in use.

20.  Equipment.  All equipment of any  electrical or mechanical  nature shall be
placed by tenants in the premises in settings approved by Landlord, to absorb or
prevent any vibration, noise or annoyance.

21. Air Conditioning.  No air conditioning unit or other similar apparatus shall
be installed or used by any tenant without the written consent of Landlord.

22.  Energy   Conservation.   Tenants  shall  cooperate  with  Landlord  in  the
conservation of energy used in or about the Building. Tenant shall not obstruct,
alter or in any way  impair  the  efficient  operation  of  Landlord's  heating,
lighting,  ventilating and air conditioning  system, if any, and shall not place
bottles, machines, parcels or any other articles on the induction unit enclosure
so as to  interfere  with air flow.  Tenant  shall not tamper with or change the
setting of any thermostats or temperature  control valves,  and shall in general
use heat, gas,  electricity,  air  conditioning  equipment,  if any, and heating
equipment in a manner  compatible with sound energy  conservation  practices and
standards.

23. Disorderly Persons. Landlord reserves the right to exclude or expel from the
Building any person who, in the judgment of Landlord,  is  intoxicated  or under
the  influence  of  liquor or  drugs,  or who shall in any  manner do any act in
violation of any of the rules and regulations of the Building.

24.  Smoking.  Tenant and its employees,  agents,  subtenants,  contractors  and
invitees  shall  comply  with  all  applicable   "no-smoking"   ordinances  and,
irrespective  of  such  ordinances,   shall  not  smoke  or  permit  smoking  of
cigarettes, cigars or pipes outside of Tenant's Premises (including plaza areas)
in any portions of the Building except areas specifically  designated as smoking
areas by Landlord.  If required by  applicable  ordinance,  Tenant shall provide
smoking areas within Tenant's Premises.

25.  Water   Conservation.   Tenants  shall   cooperate  with  Landlord  in  the
conservation  of water and avoidance of penalties for water used in or about the
Building,  including without limitation  installation of low flow toilets, water
sub-meters if applicable, and water conservation devices of any kind. The tenant
shall have total responsibility for such compliance relating to its Premises.

26. Safety and Security  Devices.  Tenant  acknowledges that safety and security
devices,  services and programs provided by Landlord,  if any, while intended to
deter crime and ensure safety, may not in given instances prevent theft or other
criminal  acts or ensure the safety of  persons or  property.  The risk that any
safety or security  device may not be effective,  or may  malfunction  or may be
circumvented  by a  criminal,  is  assumed by Tenant,  and Tenant  shall  obtain
insurance coverage to the extent Tenant desires protection against such criminal
acts and other losses.  Tenant agrees to cooperate  with any  easonable  safety
program developed by Landlord

27.  Amendments.  Landlord  reserves  the right to expand,  modify or  otherwise
change or amend  these Rules and  Regulations  from time to time with or without
notice to Tenant,  but  provided  that any such  changes  will not  unreasonable
affect  Tenant's  ability to conduct  its  business  in the  Premises,  and such
changed  rules and  regulations  will be  complied  with by all  tenants  in the
Building.  Each  tenant  may  obtain  a  copy  of the  most  current  Rules  and
Regulations at the Building Office.

<PAGE>

                                    EXHIBIT D

                                    Guarantee

<PAGE>

                                    EXHIBIT E

                           Term Commencement Agreement

     THIS AGREEMENT, made as of the _____ day of ____________________, 19___, by
and        between         ("Landlord")         and        -         ("Tenant").
--------------------------------------------

     A.  Landlord and Tenant are parties to that certain lease  agreement  dated
____________________, 19___, for premises described as

      ("Premises") located in the property ("Property") commonly known as

                                            .

     B. The Lease contemplated a Term commencing on ____________________, 19___,
and ending on  ____________________,  20___ (subject to any extensions  provided
for in the Lease).

     C. The parties desire to enter this  Agreement  confirming an adjustment to
the  commencement  and/or  expiration  dates of the  Term,  all on the terms and
conditions set forth hereinafter.

         NOW, THEREFORE, in consideration of the foregoing recitals, the parties
agree as follows.

         1. The  parties  hereby  confirm and agree that the Term  commenced  on
___________________,  19___,  and shall expire on  ____________________,  20___,
unless sooner terminated, or extended pursuant to the terms of the Lease.

         2. The  parties  confirm and agree that all work and  improvements,  if
any, required to be performed by Landlord under the Lease or any other agreement
or document entered in connection therewith, relating to the Premises, have been
completed,  except as may be specified in any Schedule 1 attached hereto,  which
may set forth certain  additional  "punch list items," which Landlord  agrees to
complete promptly hereafter.

<PAGE>

      LANDLORD                                                    TENANT

_________________________                            __________________________

_________________________                            __________________________

_________________________                            __________________________

By:                                       By:
   -----------------------------              ---------------------------------

Its:                                      Its:
   -----------------------------              ---------------------------------

<PAGE>

                                    EXHIBIT F

                              Proposition 65 Notice

                                       and

                           Material Safety Data Sheet

      At the time the Shell  Building was  constructed  and during the time when
some of the interior  spaces were built out or remodeled,  asbestos was commonly
used in the construction  industry  throughout the United States for insulation,
fireproofing,  floor tiling and acoustical ceiling. Accordingly, as described in
the  following  report,  asbestos may be present in one or more  products in the
Shell Building.  Under the California Safe Drinking Water and Toxic  Enforcement
Act  of  1986  (Proposition  65,  or the  "Act"),  asbestos  is one of the  many
chemicals known to cause cancer.

      Pursuant  to the  Act,  if any  product,  including  but  not  limited  to
asbestos,  contains  certain  chemical  substances which the State of California
believes can cause  cancer,  birth  defects or other  reproductive  defects,  an
appropriate warning must be given to individuals exposed to these products--even
if such chemical substances are present at extremely low levels.  Therefore,  in
compliance  with the Act, the 100 Bush  Corporation,  the Landlord,  issues this
notice:

                                     WARNING

     Detectable  amounts of chemicals  known to the State of California to cause
cancer,  birth defects and/or other  reproductive  harm may be found around this
facility. (Health and Safety Codess. 25249.6)

      PROJECT DESCRIPTION

      100 Bush Corporation, requested Health Science Associates (HSA) to conduct
an updated comprehensive Asbestos Survey, and to provide a written report on the
Shell Building located at 100 Bush Street, San Francisco, California. The survey
was designed to augment the previous building  asbestos surveys.  The survey was
conducted March 27 through April 3,1997.

      ASBESTOS-CONTAINING MATERIALS (ACM) ASSESSMENT

      The  ACM  (asbestos-containing  materials)  survey  focuses  attention  on
friable and non-friable,  asbestos-containing  building  materials  (ACBM).  The
Environmental  Protection  Agency (EPA)  defines  asbestos-containing  materials
(ACM) as materials which contain one percent (1.0%) or greater concentrations of
asbestos.

      An ACM assessment  generally  consists of three distinct phases: 1) review
of the facility historical records, as available;  2) physical inspection of the
facility;  and 3) the identification and collection of suspect ACM specimens for
subsequent laboratory analysis (dispersion staining/polarized light microscopy -
EPA 600/M4-82-020).

      The general  approach was to conduct the  assessment  by building  systems
such as the floor,  interior walls,  HVAC, roof,  mechanical  rooms,  etc. HSA's
survey focused on the interior  walls,  ceilings,  floor covering  materials and
exterior surfacing  materials.  A total of  one-hundred-eight  (108) suspect ACM
samples were  collected  and  delivered to HSA's  accredited  laboratory  (AIHA,
NVLAP, NIST, and the state of California).

<PAGE>

      ASSESSMENT RESULTS

      ASBESTOS-CONTAINING MATERIALS (ACM) SUMMARY

      The following section of this report contains a simplified  description of
the asbestos-containing materials discovered by building systems.

               Ceilings & Walls - A total of eighteen  (18) suspect bulk samples
         were collected from ceiling and walls from various locations. Of these,
         three (3) were positive for asbestos: two (2) transit wall panels and a
         plaster skim coat.  Unless  otherwise  tested,  assume all skim coat to
         contain asbestos.

               Floor   Covering/Mastic  -  Twelve  (12)  different  types  vinyl
         asbestos  tile  (VAT) and their  associated  mastic  are  positive  for
         asbestos.  Twenty (20) vinyl floor tile samples and  cove-base  and two
         (2) floor leveling compound materials tested negative.

               Thermal Systems  Insulation (TSI) - Abatement of various TSI pipe
         runs and elbows  have taken place  during the  previous 1 0 years which
         include the parking  structure,  pipe chases,  and several floors.  The
         canvas jacket around the 'cork"  insulated pipe system was negative for
         asbestos. However, TSI is still present in various locations throughout
         the building including:  pipe chases; above the suspended ceilings; and
         the boiler.  All TSI concealed in walls,  columns,  above the suspended
         ceiling  and pipe chases not  previously  abated are assumed to contain
         asbestos.

               Roofing  Systems - The built-up and roll-up type roofs located on
         the 29th  floor  contain  asbestos.  The 11th  and 29th  floor  roofing
         associated  components,  such as pipe vent  flashing and caulking  also
         contain asbestos.  The 11th floor roof membrane and the 29th floor roof
         walking "pads" were negative.

               Window  Caulking & Glazing - The exterior  window caulking on the
         second floor tested positive. All exterior window caulking,  therefore,
         must be assumed to be positive. The window materials tested negative.

               Miscellaneous  Materials - The following  miscellaneous materials
         tested negative:  electrical wire insulation;  parapet wall grout; HVAC
         duct expansion  joint;  and fire door  insulation.  The gasket material
         located in the  Sub-basement  mechanical  room was found to contain 60%
         Chrysotile asbestos.

<PAGE>

      NON-ASBESTOS MATERIALS SUMMARY

      The following section of this report contains a simplified  description of
the  non-asbestos  materials  discovered  during  the  assessment.  The  results
generally are described by building system.

      The major systems materials determined not to contain asbestos include:

o        Vinyl cove bases and associated adhesive
o        Roof walking pads
o        Floor white leveling compound
o        Pipe (cork) insulation canvas jacket
o        Parapet wall grout
o        Plaster walls
o        Plaster walls - skim coat (one tested at <1 %)
o        Sheet-rock walls - drywall and taping compound
o        Concrete walls and skim coat
o        Concrete ceiling - skim coat
o        Stucco wall
o        Electrical system wiring insulation
o        Exterior window glazing

      MATERIALS NOT SAMPLED

      Following  are the materials  not sampled and a brief  explanation  of why
they were not sampled:

      Concrete Roof Slab - No samples were collected and typically this material
does not contain asbestos.

      Building  Exterior - No samples were collected and typically this material
does not contain asbestos.

      Pipe Insulation - This system was extensively  sampled in previous surveys
and was shown to contain asbestos except where recently abated.

      CONCLUSIONS

         ACM  Conclusion  - The ACM  assessment  survey  performed  at the Shell
Building  shows that both  friable  and  non-friable  ACM were found in numerous
building systems. HSA recommends complete removal of any ACM prior to demolition
or construction activity which may impact the ACM.

o                 All asbestos-containing  materials (ACM) which are friable, or
                  could become friable during renovation  activities,  should be
                  removed prior to scheduled major renovations or demolition.

o All ACM removed  should be considered  for disposal as asbestos  waste even of
nonfriable.

o ? All ACM in the building  should be  protected  and left  undisturbed  to the
extent possible until abatement.

o All ACM should only be handled by qualified and registered  asbestos abatement
companies.

o                 ? Any and all persons  who come in contact  with ACM should be
                  advised of the hazardous nature of asbestos and only qualified
                  properly equipped persons should work with ACM.

o  Continued  implementation  of  the  building  O&M  (Operations&  Maintenance)
Program.

      This report present HSA's professional determinations, which are dependent
upon information obtained during performance of consulting services. HSA assumes
no responsibility for omissions or errors resulting from inaccurate  information
provided by sources outside of HSA.

      No warranty or  guarantee,  expressed or implied,  is made  regarding  the
finding,   conclusions  or   recommendations   contained  in  this  report.  The
limitations presented above supersede those stated or acknowledged herein.

<PAGE>

                                    EXHIBIT G

                                 Renewal Option

1.       Renewal Option.  Tenant shall have an option (the "Renewal  Option") to
         renew the initial  term with  respect to all (but not less than all) of
         the  Premises  demised  under  or  pursuant  to  this  Lease  as of the
         expiration  date of the  Term for one  additional  term  (the  "Renewal
         Term") of five (5) years,  commencing on the day immediately  following
         the expiration date of the initial Term,  under the following terms and
         conditions and subject to credit approval by Landlord:

         (1)      Tenant  gives  Landlord  written  notice  of its  election  to
                  exercise the Renewal  Option no earlier than the date which is
                  two hundred seventy (270) days prior to the expiration date of
                  the  initial  Term  and no later  than  the date  which is one
                  hundred eighty (180) days prior to the expiration  date of the
                  initial Term.

         2)       Tenant  has not been in breach or  default  under  this  Lease
                  through the date Tenant  exercise the Renewal  Option and does
                  not breach the Lease or become in default at any time  through
                  and  including the proposed  commencement  date of the Renewal
                  Term.

         (3)      Tenant's notice of election shall be binding, and Tenant shall
                  thereupon  be obligated  to renew  the Lease  for  the Rent as
                  determined below.

<PAGE>

2.       Term.  If tenant  timely  and properly exercises  the Renewal Option in
         accordance with the provisions of Section 1:

                       The Rent  payable for the Renewal  Term shall be based on
                  the then  prevailing  rent for comparable  deals in the market
                  place,  but in no event shall the rental rate be less than the
                  adjusted   rental  rate  payable   under  this  Lease  on  the
                  expiration  date  of the  initial  Term.  Landlord  agrees  to
                  provide a written notice  setting forth the prevailing  rental
                  rate for comparable deals for the Tenant's space within thirty
                  (30) days after  receiving a written  request  from Tenant for
                  such information.  The request for information must be made no
                  earlier  than two  hundred  seventy  (270)  days  prior to the
                  expiration  date and no later than one  hundred  eighty  (180)
                  days  prior  to  the  expiration  date  of the  initial  term.
                  "Comparable  deals" shall mean leases which are  approximately
                  as long, and commencing at approximately the same time, as the
                  Renewal  Term  and  are for  comparable  space  in  comparable
                  buildings  (with  occupancy  rates  similar  to the  Building)
                  subject to reasonable  adjustments for (1) the desirability of
                  the applicable floor or location in the building,  and (2) the
                  desirability  of the  geographic  location  of the  applicable
                  building.  "Comparable  deals" shall  explicitly  exclude from
                  consideration  any  transactions  where  the  landlord  of the
                  subject  building  is in  default  of its  mortgage  or  other
                  indebtedness on the building,  or is currently,  or has within
                  the prior six months, been involved in foreclosure proceedings
                  on the  applicable  building.  "Comparable  deals"  shall also
                  exclude  transactions  whereby  the  Tenant  has some  form of
                  equity  participation  in  the  deal.  Landlord's  good  faith
                  determination  of  the  "prevailing   rental  rate"  shall  be
                  conclusive and binding as to Landlord and Tenant.

3.       No  Improvements.  Landlord   shall  not  be  obligated  to perform any
         leasehold improvement  work in the Premises or give Tenant an allowance
         or  other  economic  concession  for  any  such  work  or for any other
         purposes for the Renewal Term.

4.       Tenant shall have no  further  options to renew the term of this  Lease
         beyond the expiration date of the Renewal Term.

5.       Except as otherwise provided herein, all of the terms and provisions of
         this Lease  shall  remain the same and in full force and effect  during
         the Renewal term.

6.       Amendment.  If Tenant exercises the Renewal Option, Landlord and Tenant
         shall execute and deliver an amendment to this Lease (or, at Landlord's
         option,  a new  Lease  on the  form  then  in  use  for  the  Building)
         reflecting  the lease of the  Premises  by  Landlord  to Tenant for the
         Renewal  Term on the terms  provided  above,  which  amendment  (or new
         lease,  as the case may be) shall be executed  and  delivered  at least
         sixty (60) days before the commencement date of the Renewal Term.

7.       Termination.  The Renewal  Option  shall  automatically  terminate  and
         become  null and void and of no force or  effect  upon the  earlier  to
         occur of (1) the  expiration  or  termination  of this  Lease,  (2) the
         termination  of the Tenant's  right to possession of the Premises,  (3)
         the  assignment of this Lease by Tenant,  (4) the sublease by Tenant of
         all or part of the  Premises,  (5) the  failure  of Tenant to timely or
         properly  exercise  the  Renewal  Option,  or (6) the default by Tenant
         under the Lease.

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