Document:

Exhibit 10.2

                              LEASE AGREEMENT INDEX

NUMBER                                                                      PAGE
--------------------------------------------------------------------------------
ARTICLE 1          PRINCIPAL LEASE PROVISIONS                                 2
ARTICLE 2          PREMISES                                                   3
ARTICLE 3          TERM AND POSSESSION                                        3
ARTICLE 4          RENT                                                       4
ARTICLE 5          OPERATING EXPENSES                                         5
ARTICLE 6          SERVICES AND UTILITIES BY LANDLORD                         5
ARTICLE 7          USE AND OCCUPANCY BY TENANT                                7
ARTICLE 8          MAINTENANCE, REPAIRS AND ALTERATIONS                       7
ARTICLE 9          LIENS                                                      9
ARTICLE 10         INSURANCE                                                  9
ARTICLE 11         INDEMNIFICATION                                           11
ARTICLE 12         DAMAGE TO TENANT'S PROPERTY                               11
ARTICLE 13         DAMAGE OR DESTRUCTION                                     13
ARTICLE 14         CONDEMNATION                                              15
ARTICLE 15         ASSIGNMENT, SUBLETTING AND RECAPTURE                      15
ARTICLE 16         DEFAULT                                                   18
ARTICLE 17         ADDITIONAL RIGHTS OF LANDLORD                             21
ARTICLE 18         BANKRUPTCY                                                24
ARTICLE 19         MISCELLANEOUS                                             26
Exhibits:
    Exhibit A      Premises
    Exhibit B      Middleton Equipment List
    Exhibit C      Bank Equipment List
    Exhibit D      Signage
<PAGE>
Lease
Page 2

                                  OFFICE LEASE

      This Lease, dated March __, 1997, is made and entered into by and between
Middleton and Edwards, a Partnership ("Landlord"), and Pacific State Bank
("Tenant").

                          1. PRINCIPAL LEASE PROVISIONS

      This section sets forth certain basic terms of this Lease; however, the
other Articles of this Lease contain a considerable number of adjustments and
exceptions which qualify the provisions of this Article.

1.1   Building Address. 358 N. Main Street, Altaville, CA 95221

1.2   Premises. Show on floor plan attached as Exhibit "A".

1.3   Suite Number. N/A.

1.4   Floor Number. N/A.

1.5   Area of Premises. 3,500 Rentable square feet.

1.6   Initial Monthly Rental. $2,625.00 payable on the first day of each month @
      $0.75 per foot.

1.7   Tenant's Percentage of Building. N/A

1.8   Lease Term. 5 Years 0 months.

1.9   Commencement Date. TBO 7-1-97.

1.10  Expiration Date. 5 years from 6-30-97.

1.11  Security Deposit. $ N/A,

1.12  Parking. Community parking.

1.13  Use of Premises. Bank.

1.14  Landlord's tenant improvements are to be determined.
<PAGE>
Lease
Page 3

                                   2. PREMISES

2.1   PREMISES. Landlord hereby leases to Tenant and Tenant hereby leases from
      Landlord the Premises described in Section 1.1 and 1.2 and delineated on
      Exhibit "A" attached hereto and incorporated by reference herein.

2.2   PARKING. Landlord shall permit Tenant, its employees and its customers to
      park in the Middleton's Mark Twain Center parking area.

2.3   COMMON AREAS. Tenant shall have the nonexclusive right, in common with
      others, to the use of common entrances, elevators, drives, stairs, and
      similar access, service ways and common areas in and adjacent to the
      Building. Landlord may exclude any portion of the Building from the common
      areas provided such exclusion does not materially affect Tenant's access
      to the premises or parking.

                             3. TERM AND POSSESSION

3.1   TERM. The term of this Lease shall he for the term set forth in Section
      1.9, or as otherwise established in letter agreement between the parties,
      and ending on the Expiration Date set forth in Section 1.10 unless sooner
      terminated as provided in this lease. In the event that Tenant is not
      granted possession at the commencement Date, the term of this lease shall
      not commence and the rent and the payment for expenses which Tenant is
      obligated to pay shall not commence until the Premises are available for
      occupancy by Tenant. In the event that the delay is due to failure of
      Tenant to timely provide Landlord with plans, specifications, information,
      approvals, consents, or the like as required hereunder, the rent shall
      commence to accrue on the date possession of the Premises would have been
      delivered to Tenant but for the delays and/or failure of Tenant. Tenant
      waives the provisions of Subdivision 1 of Section 1932 of the California
      Civil Code. If Landlord tenders possession of the Premises to Tenant prior
      to the Commencement Date and if Tenant elects to accept such prior tender,
      the term of this Lease shall commence on the date Tenant elects possession
      of the Premises and all of the terms, covenants and conditions of this
      Lease, including the payment of rent unless otherwise agreed upon, and
      other expenses, shall be effective as of such date. Notwithstanding the
      fact that the term of this Lease
<PAGE>
Lease
Page 4

      commences earlier or later than the Commencement Date, the term of this
      Lease shall end on the Expiration Date set forth in Section 1.10.

3.2   ACCEPTANCE OF PREMISES. Tenant acknowledges neither Landlord nor any agent
      of Landlord has made any representation or warranty concerning the
      Premises or Building with respect to the suitability of either for the
      conduct of Tenant's business. By taking possession of the Premises, Tenant
      accepts the Premises in its "as is" condition and acknowledges that the
      Premises are in good and satisfactory condition at the time of possession
      except as may be otherwise described as follows: Landlord will clean
      carpets, wash the windows and touch up the exterior paint. In addition,
      the Landlord has agreed to permit the Tenant to do interior improvements,
      such as painting, lighting, electrical and sundry improvements necessary
      to occupy the space. The Landlord has agreed to give the Tenant full
      credit against lease payments for all expenditures used to improve the
      interior space of the premises after Landlord approval of expense.

3.3   QUIET POSSESSION. Upon Tenant paying the rent reserved hereunder and
      observing and performing all of the covenants, conditions and provisions
      on Tenant's part to be observed and performed hereunder, Tenant shall have
      quiet possession of the Premises for the entire term hereof, subject to
      all the provisions of this Lease.

3.4   SECURITY DEPOSIT. The Landlord has waived any and all security deposits on
      said premises. The Tenant, however, will compensate Landlord for any loss
      or damage which Landlord may suffer by the reason of Tenant's default. Any
      damages that the Tenant inflicts on the premises that is beyond the normal
      wear and tear must be corrected or repaired prior to abandonment of the
      premises by the Tenant. Furthermore, any installation of equipment by the
      Tenant that is subsequently removed must be repaired by the Tenant if
      damage is created by the removal of the equipment.

                                     4. RENT

4.1   PAYMENT OF RENT. Tenant agrees to pay Landlord the monthly rental or the
      first day of each calendar month during the term of this Lease as rent for
      the Premises for
<PAGE>
Lease
Page 5

      such month. If the term of this Lease commences other than on the first
      day of the month or ends other than on the last day of a month, the rent
      for a partial month shall be prorated based on the number of days in such
      month as this Lease is in effect. In addition to said Monthly Rental,
      Tenant agrees to pay the amount of the rental adjustments as set forth in
      Section 4.2. Said rental shall be paid to Landlord, without deduction or
      offset in lawful money of the United States of America, which shall be
      legal tender at the time of payment, to the address designated by
      Landlord. All amounts of money payable by Tenant to Landlord hereunder, if
      not paid by the 10th of each month, the Tenant will be assessed a 5% late
      fee.

4.2   MONTHLY RENTAL. The Monthly Rental for the calendar year from the
      Commencement Date shall be the Initial Monthly Rental as provided in
      Section 1.6. Tenant agrees that after the 30th month and for the
      succeeding 30 months of the Lease the rental shall be increased over the
      prior months rental by an amount equal to 3%. The increased amount, if
      any, will be paid in monthly installments payable on the first day of each
      and every calendar month during the following month in lawful money of the
      United States which Tenant agrees to pay Landlord without deductions or
      offsets. This payment is in addition to amounts provided to be paid under
      other sections of this Lease.

4.3   EFFECT OF TENANT CLOSURE. Notwithstanding anything in this Lease to the
      contrary, in the event of a Bank closure all laws pertaining to this Lease
      will be under the scrutiny of the California State Banking Department or
      its successor and the Federal Deposit Insurance Corporation's rulings
      concerning bank closures.

                              5. OPERATING EXPENSES

5.1   OPERATING EXPENSES. Tenant's obligation for payment of operating expenses
      are electrical, janitorial, gas and taxes.

                      6. SERVICES AND UTILITIES BY LANDLORD

6.1   SERVICES BY LANDLORD. Provided that Tenant is not in default hereunder,
      Landlord agrees to furnish or cause to be furnished to the premise, the
      utilities and
<PAGE>
Lease
Page 6

      services described, subject to the conditions and in accordance with the
      rules and regulations for the Building and with the standards set forth
      below:

      (a)   Tenant understands and agrees that it is responsible for the utility
            costs assigned to its space (heat and air conditioning). In
            addition, the heat generated machines or equipment on the premises
            are those of the tenants and are to be maintained by the Tenant as
            well as subsequent air conditioning units attached to the premise.
            Cost of installation, cost of operating maintenance thereof shall be
            paid by the Tenant directly. Any item attached to building belongs
            to Landlord.

      (b)   Landlord shall furnish water for sewer and lavatory purposes use at
            his expense.

      (c)   Tenant shall provide janitorial services to the Premises at us own
            expense. Landlord will provide refuse and rubbish disposable
            services that will be available to the tenant.

6.2   CHARGE FOR EXCESS SERVICE.

      (a)   the Premises for their intended purpose, or special electrical,
            cooling and ventilating needs created in certain areas by hybrid
            telephone equipment, computers and other similar equipment or uses.
            At Landlord's option, separate meters, wiring or circuiting, for
            such utilities and services may be installed for the Premises, and
            Tenant upon demand shall assume the full payment for any such
            separately metered services. The Tenant will assume full
            responsibility for all such utility services on the Gas and Electric
            Company bill for said premise. Adjustments may occur at the
            discretion of the Landlord for the remainder of the Lease term or
            any option periods

6.3   INTERRUPTION OF SERVICE. Landlord shall not be liable for, and Tenant
      shall not be entitled to, any abatement or reduction of rent or damages by
      reason of Landlord's failure to furnish any of the foregoing when such
      failure is caused by accident, breakage, repairs, strikes, lockouts or
      other labor dispute of any character, governmental regulation, moratorium
      or other government action, inability by exercise of reasonable diligence
      to obtain electricity, water or fuel, or by any other
<PAGE>
Lease
Page 7

      cause beyond Landlord's reasonable control, nor shall any such failure,
      stoppage or interruption of any such service be construed either as an
      eviction of Tenant, or relieve Tenant from the obligation to perform any
      covenant or agreement. In the event any failure, stoppage or interruption
      thereof, however, Landlord will expedite the process to resume service
      promptly.

6.4   MODIFICATION OF SERVICE. Notwithstanding anything herein above to the
      contrary, Landlord reserves the right from time to time to make reasonable
      and nondiscriminatory modifications to the above standards for utilities
      and services. Tenant shall not do or permit anything to be done in or
      about the Premises nor bring or keep anything therein which will in any
      way increase the existing rate of or affect any fire or other insurance
      upon the Building or any of its contents, or cause cancellation of any
      insurance policy covering said Building or any part thereof or any of its
      contents. In the event Tenant's permitted use of the Premises results in
      an increase in insurance rates of the Building of which the Premises are a
      part, such insurance rate increases shall be charged to and payable by
      Tenant monthly as additional rent during the term of this Lease and any
      extensions hereof.

                         7. USE AND OCCUPANCY BY TENANT

7.1   USE AND OCCUPANCY. Tenant shall use and occupy the Premises for general
      banking and office purposes only.

7.2   FURNITURE. FIXTURES AND EQUIPMENT (FF&E). FF&E listed in Exhibit B (as
      presented by Landlord) to be used at the discretion of the tenant. Tenant
      owns and maintains FF&E as listed in Exhibit C, as certified by ValliWide
      Bank.

                     8. MAINTENANCE, REPAIRS AND ALTERATIONS

8.1.1 MAINTENANCE AND REPAIR. During the term of the Lease, Tenant shall at
      Tenant's sole cost and expense, keep the Premises and fixtures therein in
      good condition and repair in a quality and class equal to the original
      work, ordinary and reasonable wear excepted. Without limiting the
      foregoing, Landlord may require that any such maintenance or repairs be
      performed by landlord at Tenant's expense.
<PAGE>
Lease
Page 8

      Landlord shall have no obligation to alter, remodel, improve, repair,
      decorate or paint the Premises or any part thereof except for those items
      which were agreed to verbally and have been presented in writing: 1,
      Installed at Tenant's expense and at full reimbursement by Landlord in
      either cash or rent credit: a) new lighting system and b) painting and
      decorative improvements to the building which are subject to Landlord
      approval. Upon surrender of the Premises to Landlord, broom clean, in as
      good order, condition and repair as they are on the commencement of the
      term of this Lease, ordinary and reasonable wear excepted.

8.1.2 DUTIES OF LANDLORD. Landlord shall repair and maintain the structural
      portions of the Building, including basic plumbing, and electrical
      systems, unless such maintenance and repairs are caused in part or in
      whole by the act, neglect, fault of or omission of any duty by Tenant, its
      agents, employees or invitees, in which case Tenant shall pay to landlord,
      upon receipt of written notice, the reasonable costs of such maintenance
      and repairs. In addition, the Landlord is responsible for the maintenance
      of the vault door, drive up teller and any such banking instruments that
      is listed as the ownership thereof in the attached section Landlord shall
      be liable for any failure to repair or maintain the Premises unless such
      failure persists for an unreasonable time after written notice by Tenant.
      Tenant retains its rights to make repairs at Landlord's expense under any
      laws, statute or ordinance new or hereafter in effect. There shall be
      abatement of rent and liability of Landlord by reason of any injury to or
      interference with Tenant's business caused by Landlord's maintenance,
      failure to maintain or repair the Premises, Building and/or Landlord owned
      fixtures and equipment.

8.2   ALTERATIONS.

      (a)   Tenant shall not make or permit any alterations, additions, or
            improvements to be made to the Premises, without obtaining
            Landlord's prior written consent, and Landlord may impose, as a
            condition of such consent, any requirements that Landlord in its
            sole discretion deems reasonable or advisable, including but not
            limited to the requirement that Tenant utilize only contractors,
            materials, mechanics and materialmen approved by Landlord, and the
<PAGE>
Lease
Page 9

            requirement that Tenant shall, at Tenant's sole cost and expense,
            furnish Landlord with a Completion Bond, if deemed necessary for the
            amount of work to be completed. Landlord agrees to permit the Tenant
            to install an ATM machine in the front of the premises. Tenant
            agrees to give Landlord written notice of the commencement date of
            any alterations, improvements or repairs to be made not later than
            fifteen (15) days prior to the commencement of any such work, in
            order to give Landlord time to post a Notice of Non-Responsibility.

      (b)   All such alterations, additions or improvements, made at Tenant's
            sole cost and expense, shall become the property of Landlord and
            shall be surrendered with the Premises at the end of the lease term,
            except that at the termination of this Lease, Tenant may remove
            trade fixtures, equipment or decorative fixtures which were paid for
            directly by Tenant, provided Tenant repairs any damage to the
            remaining improvements or the Premises caused by the removal of such
            fixtures. Moveable furniture and equipment of Tenant shall remain
            the property of Tenant.

      (c)   Landlord is responsible for any regulatory improvements to the
            premises that may be required by local, state and/or national
            agencies.

                                    9. LIENS

      Tenant shall keep the Premises and the Building free from any liens
arising out of work performed, materials furnished, or obligations incurred by
Tenant and shall indemnify, hold harmless and defend Landlord from any liens and
encumbrances arising out of any work performed or materials furnished by or at
the discretion of Tenant. Tenant shall cause any mechanic's lien or other liens
filed against the demised Premises or Building to be released and removed within
ten (10) days of such filing either by the satisfaction of such lien or by the
posting of a bond. Failure by Tenant to comply with this provision shall
constitute a material breach of the Lease.

                                  10. INSURANCE

10.1  TENANT'S INSURANCE.
<PAGE>
Lease
Page 10

      (a)   during the entire terms of the Lease, Tenant shall obtain and keep
            in full force and effect, at its sole cost and expense, the
            following insurance: (i) Comprehensive general liability insurance,
            including: personal injury, contractual liability, independent
            contractors and products liability for all claims and liability
            arising out of the use or occupancy of the Premises with limits as
            appropriate to Tenant's use of the Premises but not less than
            $1,000,000.00; combined single limit for bodily injury and property
            damage; (ii) fire and extended coverage insurance with a vandalism
            and malicious mischief endorsement in an amount equal to the full
            replacement value of all fixtures, furniture and improvements
            installed by or at the expense of Tenant; and (iii) insurance
            against interruption of Tenant's business and loss of Tenant's
            business records in such amount, as appropriate to Tenant's
            business. The aforementioned minimum limits of policies shall in no
            event limit the liability of Tenant hereunder.

      (b)   All insurance policies of Tenant required by this Lease shall be
            with companies having a rating of not less than "A: in "Best's
            Insurance Guide," and such policies shall name Landlord as an
            additional insured. Tenant shall furnish from the insurance
            companies or cause the insurance companies to furnish certificates
            of coverage. All such policies shall be written as primary policies
            not contributing with and not in excess of the coverage which
            Landlord may carry. No such policy shall be cancelable or subject to
            reduction of coverage or other modification or cancellation except
            after thirty (30) days prior written notice to Landlord by the
            insurer. Tenant shall, at least twenty (20) days prior to the
            expiration of the policy furnish the Landlord with renewals or
            binders. Tenant agrees that if Tenant does not take out and maintain
            such insurance, Landlord may (but shall not be required to) procure
            said insurance on Tenant's behalf and charge Tenant the premiums
            together with a twenty-five percent (25%) handling charge, payable
            upon demand. Tenant shall have the right to provide such insurance
            coverage pursuant to
<PAGE>
Lease
Page 11

            blanket policies obtained by tenant provided such blanket policies
            expressly afford coverage to the Premises and to Tenant as required
            by this Lease.

10.2 WAIVER OF SUBROGATION. Landlord and Tenant hereby waive any and all rights
of recovery against the other or against the officers, employees, agents and
representative of the other, on the account of loss or damage occasioned to such
waiving party or its property or the property of others under its control to the
extent that such loss or damage is insured against under any fire and extended
coverage insurance policy which either may have in force at the time of such
loss or damage. Tenant shall, upon obtaining the policies of insurance required
under this Lease, give notice to the insurance carrier or carriers that the
foregoing mutual waiver of subrogation is contained in this Lease.

                               11. INDEMNIFICATION

      Tenant shall indemnify and hold harmless Landlord from and defend Landlord
against any and all claims arising from Tenant's use of the Premises or the
conduct of his business or from any activity, work, or thing done, permitted or
suffered by the Tenant in or about the Premises, and shall further indemnify and
hold harmless Landlord against and from any and all claims arising from any
breach or default in the performance on Tenant's part to be performed under the
terms of this Lease, or arising from my act, neglect, fault or omission of the
Tenant, or of its agents or employees, and from and against all costs,
attorney's fees, expenses and liabilities incurred in or about such claim or any
action brought against Landlord by reason of any such claim. Tenant upon notice
from Landlord shall defend Landlord at Tenant's expense by counsel reasonably
satisfactory to Landlord. Tenant, as a material part of the consideration of
Landlord, hereby assumes all risks of damage to property or injury to persons
in, upon or about the Premises from any cause whatsoever, except that which is
caused by the failure of Landlord to observe any of the terms and conditions of
this Lease and such failure has persisted from an unreasonable period of time
after written notice of such failure, and Tenant hereby waives all claims and
respect thereto against Landlord.

12.   DAMAGE TO TENANT'S PROPERTY
<PAGE>
Lease
Page 12

      Landlord or its agents shall not be liable for any damage to property
entrusted to employees of the building, nor for loss or damage to any property
by theft or otherwise, not for any injury or damage to persons or property
resulting from fire, explosion, falling building materials, including but not
limited to concrete insulation, duct work, ceiling tiles, lighting fixtures,
lens or lamps, and wallboard or other wall coverings, steam, gas, electricity,
water or rain, which may leak from any part of the building, or from the pipes,
appliances of plumbing works therein, or from the roof, street or subsurface, or
from any other place or resulting from dampness or any other cause whatsoever.
Landlord or its agents shall not be liable for interference with the light or
other incorporeal hereditaments, nor shall Landlord be liable for any latent
defect in the Premises or in the Building. Tenant shall give prompt notice to
Landlord in case of fire or accidents in the Premises or in the Building or of
defects therein or in the fixtures or equipment.

                            13. DAMAGE OR DESTRUCTION

13.1  REPAIR OF DAMAGE.

      (a)   If the Premises or the Building are damaged or destroyed by fire or
            other perils covered by fire, extended coverage and vandalism and
            malicious mischief insurance, Landlord shall pay the cost of repair
            for any damage or destruction of the Building or the Premises caused
            by the negligence or willful misconduct of Landlord, its agents or
            employees. The Landlord will be responsible for all repairs to the
            extent caused by defects in construction of the building or the
            negligence or willful misconduct of Landlord, its agents or
            employees. The Tenant is not responsible for cost of repair of any
            damage or destruction of the Premises, The Landlord will be
            responsible for damages to the property or injuries to persons in or
            upon the premises from any cause whatsoever expect that which is
            caused by failure of Tenant to observe terms and conditions of the
            Lease and such failure has persisted for an unreasonable period of
            time after written notice of such failure, and Tenant hereby waives
            all claims and respect thereto against Landlord. The Tenant shall
            pay for reasonable costs of repair or damage or destruction to the
            premises that are caused by the actions of the Tenant, its employees
            or customers utilizing the
<PAGE>
Lease
Page 13

            facility during banking hours. If the damage occurs and forces the
            Tenant to relocate to other premises the relocations costs will be
            born by the Tenant due to the inability of the Tenant to operate its
            day to day function. Such requirement has to be notified promptly by
            the Tenant to the Landlord in the event the premise is unoccupiable
            due to any such disaster. Tenant's obligation to pay the cost of
            repairs for damage or destruction to the Premises or Building shall
            be reduced by any insurance proceeds payable to landlord for such
            damage or destruction but only to the extent such insurance provides
            for a waiver of subrogation which permits such a reduction of
            Tenant's obligations. Tenant shall vacate such portion of the
            Premises as Landlord reasonably requires to enable Landlord to
            repair the Premises or Building.

      (b)   In the event the Premises or Building are damaged as a result of any
            cause other than the perils covered by fire, extended coverage and
            vandalism and malicious mischief insurance, then Landlord shall
            repair and restore the same provided the extent of destruction is
            less than ten percent (10%) of the then full replacement value of
            the Premises or Building. In the event the destruction is to an
            extend greater than ten percent (10%) of the then full replacement
            value, then Landlord shall have the sole option either (i) to repair
            and restore such damage, this Lease continuing in full force and
            effect, but the rent to be proportionately reduced as provided in
            Section 13.2 below; or (ii) give notice to Tenant at any time within
            thirty (30) days after such damage, terminating this lease as of the
            date specified in such notice, which date shall be no less than
            thirty (30) nor more than sixty (60) days after giving the notice.
            In the event of giving such notice, this Lease shall expire and all
            interests of the Tenant in the Premises shall terminate on the date
            so specified in such notice and the rent, reduced by any
            proportionate reduction based upon the extent, if any, to which such
            damage interfered with the business carried on by Tenant in the
            Premises, shall be paid up to date of such termination.

      (c)   Notwithstanding anything to the contrary contained in this section,
            Landlord shall not have any obligation whatsoever to repair.
            reconstruct or restore the
<PAGE>
Lease
Page 14

            Premises when the damages resulting from any casualty covered under
            this section occurs during the last - twelve (12) months of the term
            of this Lease or any extension thereof. Landlord shall not be
            required to repair any injury or damage by fire or other cause, or
            to make any repairs or replacements of any panels, decorations,
            office fixture, railing, ceiling, floor covering, partitions, or any
            other property installed in the Premises by Tenant. However, if the
            property is deemed uninhabitable the Landlord will, at their
            expense, pay for the Tenant's relocation costs.

13.2  ABATEMENT. The rent and other expenses paid by the Tenant under this lease
      shall abate. The Landlord will have responsibility to the Tenant for any
      damages or destruction to the Premises or the Building or any
      inconvenience or injury to Tenant by reason on any maintenance, repairs,
      alterations, decoration, additions or improvements to the Premises or the
      Building. Tenant does not waive the provisions as identified under
      subdivision 2 of Section 1932 and subdivision 4 of Section 1933 of
      California Civil Code. If the Premises are damaged or destroyed by fire or
      other perils covered by the extended coverage insurance, not caused by the
      negligence or willful misconduct of Tenant, its agents, employees or
      visitors, the Monthly Rental and the payment by Tenant of its share of
      Operating Expense shall abate until such damage or destruction is repaired
      in proportion to the reduction of the area of the Premises usable by
      Tenant. Except as specifically provided in this Lease, this Lease shall
      not terminate, Tenant shall not be released from any of its obligations
      under this Lease, the rent and other expenses payable by Tenant under this
      Lease shall not abate and Landlord shall have no liability to Tenant for
      any damage or destruction to the Premises or the Building or any
      inconvenience or injury to Tenant by reason of any maintenance, repairs,
      alterations, decoration, additions or improvements to the Premises or the
      Building. Tenant hereby waives the provisions of subdivision 2 of Section
      1932 and subdivision 4 of Section 1933 of California Civil Code.

13.3  TERMINATION BY LANDLORD. If the building is damaged or destroyed, Landlord
      shall have the option to terminate this Lease within sixty (60) days of
      such damage, if Landlord reasonably determines that the cost of repair to
      the Building
<PAGE>
Lease
Page 15

      exceeds 10% of the value of the Building exclusive of the land prior to
      such damage. If the Premises are damaged or destroyed, Landlord shall have
      the option to terminate the term of this Lease within sixty (60) days of
      the date of such damage or destruction if the cost of repair of the
      Premises, as reasonably determined by Landlord, exceeds the insurance
      proceeds estimated by Landlord to be payable to Landlord for such damage
      or destruction. It will terminate this Lease pursuant to this sentence. If
      the Landlord does not exercise their right to repair the damage or
      destruction within the reasonable portion of time addressed in paragraph
      13.3 the Landlord will pay for any relocation cost forced on the Tenant.

                                14. CONDEMNATION

14.1  CONDEMNATION. The term of this lease shall terminate as to die portion of
      the premises taken or condemned by any authority under power of eminent
      domain or transferred by landlord by agreement with such authority under
      threat of condemnation, with or without any condemnation action being
      instituted, as of the date such authority requests possession of such
      portion of the Premises. The monthly rental and the Tenant's percentage of
      occupancy shall be adjusted in the proportion that the square footage of
      the portion of the Premises taken bears to the total square footage of the
      premises prior to such taking. Tenant shall not be entitled to any
      compensation, allowance, claim or offset of any kind against the Landlord
      or any condemning authority, as damages or otherwise, by reason of being
      deprived of the Premises or by the termination of this Lease, except that
      Tenant shall be entitled to such portion of any separate award for any
      improvements to the premises paid for by Tenant in an amount not to exceed
      the unamortized cost of such improvements with such costs amortized over
      the term of this Lease without reference to any unexercised options. Any
      potion of the Building other than the Premises taken by eminent domain or
      dedicated to public use shall upon such taking or dedication be excluded
      from the area over which Tenant is granted rights hereunder, and this
      Lease shall continue in full force and effect without any reduction in
      rental.

                    15. ASSIGNMENT, SUBLETTING AND RECAPTURE
<PAGE>
Lease
Page 16

15.1  CONSENT REQUIRED. Tenant shall not assign or otherwise transfer by
      operation of law or otherwise this Lease or any interest herein without
      the prior written consent of Landlord. If Tenant desires at any time to
      assign or otherwise transfer this Lease, it shall first notify Landlord of
      its desire to do so and shall submit in writing to Landlord (i) the name
      of the proposed assignee, (ii) the nature of the proposed assignee's
      business to be carried on in the Premises, (iii) a copy of the proposed
      assignment and any other agreements to be entered into concurrently with
      such assignment, and (iv) such financial information as Landlord may
      reasonably request concerning the proposed assignee. Landlord hereby
      reserves the right to condition any such approval upon Landlord's
      determination that (i) the proposed assignee is financially responsible as
      a sole tenant (ii) the proposed assignee is likely to conduct a business
      on the Premises of a type and quality substantially equal to that
      conducted by Tenant (iii) the proposed used by the assignee is compatible
      with any existing or future use by Landlord. Tenant shall pay to Landlord
      a reasonable fee and Landlord's expenses in reviewing such proposed
      assignment in no event to be less than one hundred dollars ($100.00). This
      lease may not be assigned without complying with the provisions of this
      Section in reliance on any law relating to bankruptcy or debtor's rights
      generally unless adequate assurance of future performance is provided
      Landlord including adequate assurance of the source of rent and other
      expenses due under this Lease for the entire term of this Lease and unless
      the assignee and the proposed use of the premises by the assignee are
      consistent with the type of other tenants in the Building and the use by
      such tenants of their Premises.

15.2  PROHIBITIONS. Partial assignments of Tenants' interest in this Lease and
      the hypothecation of any of Tenant's interest in this Lease are acceptable
      subject to the approval of the Landlord. Tenant shall not sublease all
      or any portion of the Premises without approval of the Landlord. A
      transfer of control of Tenant shall be deemed an assignment of this lease
      and shall be subject to all of the provisions of this Article. The
      Landlord waives any consent to any sale or merger of the Tenant's
      business. The Landlord will have the right to consent to any assignment,
      encumbrance, subleasing, occupation or other transfer of said Lease. On
      acceptance
<PAGE>
Lease
Page 17

      of the assignment, it will release the Tenant from any of the Tenant's
      obligations hereunder and will not be deemed to be a consent to any
      subsequent assignment, subleasing or occupation. Any sale, assignment,
      encumbrance or other transfer of this Lease and any subleasing or
      occupation of the Premises which does not comply with the provisions of
      this Article shall be void and shall be a default hereunder and shall, at
      option of the Landlord, terminate this Lease.

15.3  PAYMENTS TO LANDLORD. Tenant shall pay the Landlord promptly. The Tenant
      will keep any excess rents, charges or common area expenses passed on to
      the assignee or subtenant of the Lease. The provisions of this Section
      shall apply regardless of whether such assignment, subleasing or
      occupation is made in compliance with the term of this Lease. Any payments
      made to Landlord pursuant to this Section shall not cure any default under
      this Lease arising form such assignment, subleasing or occupation.

15.4  RECAPTURE. If Tenant requests Landlord's consent to any assignment of this
      Lease, Landlord shall have the right, to be exercised by giving written
      notice to Tenant within thirty (30) days of receipt by Landlord of the
      information concerning such assignment required by Section 15.1 to
      terminate this Lease effective as of the date Tenant proposes to assign
      this Lease. On termination of this Lease by Landlord pursuant to this
      Section, Landlord shall pay to Tenant the unamortized cost of any tenant
      improvements to the Premises paid by Tenant, with such costs amortized
      over the term of this Lease without reference to any unexercised options.

15.5  ASSUMPTION. As a condition to Landlord's written consent as provided for
      in this Article, Tenant shall deliver to Landlord an executed copy of any
      assignment or agreement relating to the Premises. Any assignee shall
      assume the obligations of Tenant under this Lease. The collection or
      acceptance of rent or other payment by Landlord from any person other than
      Tenant shall not be deemed a waiver of any payment provision of this
      Article, the acceptance of any assignee or subtenant as the tenant
      hereunder or a release of Tenant from any obligation under this Lease.

15.6  EFFECT OF TENANT BANKRUPTCY. In the event of Tenant bankruptcy, the
      provisions of Article 18 shall be applicable. The bankruptcy rules and
      regulations
<PAGE>
Lease
Page 18

      take effect in the event the Tenant subleases, assigns or transfers the
      lease agreement to a non-banking entity. The bankruptcy laws would
      prevail.

                                   16. DEFAULT

16.1  EVENTS OF DEFAULT. The occurrence of any one or more of the following
      events shall constitute a default hereunder by Tenant:

      (i)   The abandonment of the Premises by Tenant, abandonment is hereby
            defined to include, but is not limited to any absence by Tenant from
            the premises for five (5) days or longer while in default of any
            provision of this Lease.

      (ii)  The failure by Tenant to make any payment of rent or other payment
            required to be made by Tenant hereunder, as and when due.

      (iii) The failure by Tenant to observe or perform any of the express or
            implied covenants or provisions of this Lease to be observed or
            performed by Tenant other than as specified in (i) or (ii) above,
            where such failure shall continue for a period of ten (10) days
            after written notice thereof from Landlord to Tenant; provided,
            however, that any such notice shall be in lieu of, and not in
            addition to, any notice required under California code of Civil
            Procedure Section 1161; provided, further, that if the nature of
            Tenant's default is such that more than ten (10) days are reasonably
            required for its cure, then Tenant shall not be deemed to be in
            default if Tenant shall commence such cure within said ten (10) day
            period and thereafter diligently prosecute such cure to completion.

      (iv)  The making by Tenant of any general assignment for the benefit of
            creditors; the filing by or against Tenant of a petition to have
            Tenant adjudged a bankrupt or a petition for reorganization or
            arrangement under any law relating to bankruptcy (unless, in the
            case of a petition filed against Tenant, the same is dismissed
            within thirty (30) days; or the attachment execution or other
            judicial seizure of substantially all of the Tenant's assets located
            at the premises or of Tenant's interest in this Lease, where such
            seizure is not discharged within thirty (30) days. In no event,
            however, shall this Lease or any interest in or to the Demised
            Premises become an asset in any such proceeding.
<PAGE>
Lease
Page 19

      (v)   The making by Tenant of any material misstatement of fact in
            connection with this Lease or in connection with any assignment,
            subletting, occupation or use of the Premises by any other person or
            in any other agreement to which Landlord and Tenant are parties.

16.2  REMEDIES. On the occurrence of an event of default, Landlord may at any
      time thereafter, with or without notice of demand and without limiting
      Landlord in the exercise of a right or remedy which Landlord may have by
      reason of such default or breach, do the following:

      (i)   Landlord may elect to maintain this Lease in full force and effect
            and recover the rent and other monetary charges as they become due
            without terminating Tenant's right to possession of the Premises
            irrespective of whether Tenant shall have abandoned the Premises.
            Landlord shall not be deemed to have elected to terminate his Lease
            unless Landlord gives Tenant written notice of such election to
            terminate. In the event Landlord elects not to terminate the Lease,
            Landlord shall have the right to attempt to relet the Premises at
            such rent and upon such conditions and for such a term, and to do
            all acts necessary to maintain or preserve the premises that
            Landlord deems reasonable and necessary without being deemed to have
            elected to terminate the Lease, including removal of all persons and
            property from the Premise, such property to be stored at the cost of
            and for the account of Tenant. In the event of such reletting
            occurs, this Lease shall terminate automatically upon the new Tenant
            taking possession of the premises.

      (ii)  Landlord may elect by written notice to Tenant to terminate this
            Lease at any time after the occurrence of an event of default, in
            which case this Lease shall terminate and Tenant shall immediately
            surrender possession of the premises to Landlord. Landlord shall be
            entitled to reenter the Premises, remove Tenant's property therefrom
            ant store it for Tenant's account and at Tenant's expense (but
            Landlord shall not
<PAGE>
Lease
Page 20

            be required to effect such removal), eject all persons from the
            Premises and recover all damages incurred by Landlord by reason of
            Tenant's default as hereinafter provided. Any such reentry shall be
            permitted by Tenant without hindrance and Landlord shall not thereby
            be liable in damages for such reentry or be guilty of trespass,
            forceable entry or unlawful detainer. If Landlord elects to so
            terminate this Lease and Tenant's right to possession are terminated
            by operation of law, such termination shall cancel all Tenant's
            options, if any, to extend or renew the term of this Lease.

16.3  DAMAGES ON TERMINATION. On termination of this Lease by reason of Tenant's
      default, Landlord may recover damages from tenant, in addition to all
      other remedies available, the following:

      (i)   The worth at the time of award of any unpaid rent which had been
            earned at the time of such termination; plus

      (ii)  the worth at the time of award of the amount by which the unpaid
            rent which would have been earned after termination until the time
            of award exceeds the amount of such rental loss that is proved could
            have been reasonably avoided; plus

      (iii) 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 award exceeds the
            amount of such rental loss that is proved could be reasonably
            avoided; plus

      (iv)  any other amount necessary to compensate Landlord for all the
            detriment approximately caused by Tenant's failure to perform his
            obligations under this Lease or which in the ordinary course of
            events would be likely to result therefrom; plus

      (v)   at Landlord's election, such other amounts in addition to or in lieu
            of the foregoing as may be permitted from time to time by applicable
            state law.

      As used in (i) above, the "worth at the time of award" is computed by
allowing interest at the rate of ten percent (10%) per annum from the date of
default. The term
<PAGE>
Lease
Page 21

"rent" as used in the Section 16.3 shall be deemed to be and to mean the rent
required to be paid by Tenant pursuant to the terms of this Lease.

16.4  NON-EXCLUSIVE REMEDIES. The remedies of Landlord set forth in this Section
      16 shall not be exclusive but shall be cumulative and in addition to all
      rights and remedies now or hereafter provided or allowed by law or equity
      including, but not limited to, the right of Landlord to seek and obtain an
      injunction and the right of Landlord to damages in addition to those
      specified in Section 16.3. Tenant hereby expressly waives any and all
      rights of redemption granted by or under any present or future law if
      Tenant is evicted or dispossessed for any cause of if Landlord obtains
      possession of the Premises by reason of the breach by Tenant of any of its
      obligations under this Lease.

                        17. ADDITIONAL RIGHTS OF LANDLORD

17.1  ENTRY BY LANDLORD. The Landlord waives the unconditional right to enter
      due to the confidential and secure nature of the Tenant's business.
      However, the Landlord may request entrance to the premises to inspect the
      same, to make repairs or to provide any necessary services that should be
      provided by the Landlord to Tenant hereunder. The Tenant submits such
      Premises to prospective purchasers or tenants to post Notices of
      Non-Responsibility, to alter, improve or repair the Premise or any other
      portion of the Building, all without being deemed guilty of an eviction of
      a Tenant without abatement of rent, and may for that purpose erect
      scaffolding and other necessary structures where reasonably required by
      the character of the work to be performed, providing that the business of
      Tenant shall be interfered with as little as is reasonably practicable.
      For each of the aforesaid purposes, Landlord shall at all times have and
      retain a key in which to unlock all the doors in, upon and about the
      Premises, excluding Tenant's vaults and safe's, and Landlord shall have
      the right to use any and all means which Landlord may deem proper to open
      said door in an emergency in order to obtain entry to the Premises, and
      any entry to the Premises obtained by Landlord of any said means, or
      otherwise, shall not under any circumstances be construed or deemed to be
      a forceable or unlawful entry into, or a detainer of the Premises, caused
      on account thereof shall be paid by Tenant. It is
<PAGE>
Lease
Page 22

      understood and agreed that no provision within Lease shall be construed as
      obligating Landlord to perform any repairs, alterations or decorations
      except as otherwise expressly agreed herein to be performed by Landlord.

17.2  TRANSFER OF LANDLORD'S INTEREST. Landlord may transfer its interest in the
      Premises and this Lease without the consent of Tenant, at any time and
      from time to time, and any such transfer or subsequent transfer shall not
      affect the obligations of Tenant pursuant to this Lease. Landlord's
      liability for performance of any covenants and obligations of Landlord
      under this Lease shall run with title to Landlord's interest in this
      Lease, and upon transfer thereof (other than an assignment or transfer as
      security for the benefit of any holder of an indebtedness or other
      obligation). Landlord shall be released from all covenants and obligations
      hereunder. Each transferee shall be deemed to have assumed Landlord's
      obligations pursuant to this Lease until transfer to and assumption by any
      subsequent transferee, and such assumptions shall not be deemed on itself
      an acknowledgment by the transferee of any then existing claims of Tenant
      against any prior Landlord.

17.3  DEFAULT BY LANDLORD. Landlord shall not be liable to Tenant if Landlord is
      unable to fulfill any of its obligations under this Lease if Landlord is
      prevented, delayed or curtailed from doing so by reason of any cause
      beyond Landlord's reasonable control. Landlord shall not be in default
      unless Landlord fails to perform obligations required of Landlord within a
      reasonable time, but in no event later than sixty (60) days after written
      notice by Tenant to Landlord, specifying Landlord's failure to perform
      such obligation; provided, however, that if the nature of Landlord's
      obligations is such that more than sixty (60) days re required for
      performance, then Landlord shall not be in default if Landlord commences
      performance within such sixty (60) day period and thereafter diligently
      prosecutes its efforts to satisfy such obligation. Tenant may not offset
      against any rent or other amount due from Tenant under this Lease any
      amount due or claimed to be due to Tenant from Landlord whether arising
      pursuant to this Lease or otherwise unless already agreed and stated in
      said Lease. Tenant waives the provisions of Section 1942 of the California
      Civil Code to the extent such Section permits a right to offset.
<PAGE>
Lease
Page 23

17.4  SUBORDINATION. This Lease shall be subject and subordinate at all times to
      all ground and underlying Leases which now exist or may hereafter be
      executed effecting the building or the land upon which the Building is
      situated or both, and to the lien of any mortgages or deeds of trust in
      any amount or amounts whatsoever now or hereafter placed on or against the
      land and Building or either thereof or on Landlord's interest or estate
      therein, or portion thereof, or on or against any ground or underlying
      lease without the necessity of the execution and delivery of any further
      instrument on the part of Tenant to effectuate such subordination;
      provided, however, that so long as Tenant is not in default, the terms of
      this Lease shall not be affected by termination proceedings in respect to
      such ground or underlying lease or foreclosure or other proceedings under
      such mortgages or deeds of trust, Tenant hereby agreeing, at the written
      request of the Landlord, under such ground or underlying lease or other
      purchases of the Building, in such foreclosure or other proceedings to
      attorn to such Landlord or to such purchaser or, at such Landlord's or
      such purchaser's option to enter into a new lease for the balance of the
      term hereof upon the same terms and provisions as are contained in this
      Lease. Notwithstanding the foregoing, Tenant shall execute and deliver
      upon demand such further instrument or instruments evidencing such
      subordination or this Lease to the lien or any such mortgage or mortgages
      or deeds of trust as may be required by Landlord. Landlord is hereby
      irrevocable appointed and authorized as agent and attorney in fact of
      Tenant to execute all subordination instruments within ten (10) days after
      notice from Landlord demanding the execution thereof.

17.5  ESTOPPEL CERTIFICATE. Tenant shall at any time and from time to time upon
      not less that ten (10) days prior written notice from Landlord, execute,
      acknowledge and deliver to Landlord a statement in writing (I) certifying
      that this Lease is unmodified and in full force and effect (or, if
      modified, stating the nature of such modification and certifying that this
      lease, as so modified, is in full force and effect) and the dates to which
      the rental and other charges are paid in advance, if any, and (ii)
      acknowledging that there are not, to Tenant's knowledge, any uncured
      defaults on the part of Landlord hereunder, or specifying such defaults if
      any are claimed. Any such
<PAGE>
Lease
Page 24

      statement may be relied upon by any prospective purchaser or encumbrance
      of all or any portion of the real property of which the Premises are a
      part.

      Tenant's failure to deliver such statement within such time shall be
conclusive upon Tenant (i) that this Lease is in full force and effect, without
modification except as may be represented by Landlord, (ii) that there are no
uncured defaults in Landlord's performance (iii) that not more than one month's
rental has been paid in advance, and (iv) that the security deposit is as set
forth in the Lease.

17.6  FINANCIAL INFORMATION. From time to time during the term of this Lease,
      Tenant shall provide Landlord with current financial information
      concerning Tenant. (At the execution of the new Lease.) See 1995 and 1996
      Annual Report.

                                 18. BANKRUPTCY

18.1  EFFECT OF TENANT BANKRUPTCY. If Tenant files a Petition in voluntary
      bankruptcy under Chapter 7, Chapter 11 or Chapter 13 of the Bankruptcy
      Acts as then in effect, the following language will be appropriate: if the
      Tenant by adjudicated a bankrupt in involuntary bankruptcy proceedings and
      such adjudication shall not been vacated within thirty (30) days from the
      date thereof, or if a receiver or trustee be appointed to the Tenant's
      property and the order appointing such receiver or trustee shall not be
      set aside or vacated within thirty (30) days after the entry thereof, or
      if the Tenant shall assignee the Tenant's estate of effects for the
      benefit of creditors, or if this Lease shall otherwise, by operation of
      law, devolve or pass to any person or persons other than Tenant, then and
      in any such event Landlord may, if Landlord so elects, with or without
      notice of such election and with or without entry or action by Landlord,
      forthwith terminate this Lease, and notwithstanding any other provisions
      of this Lease, Landlord, in addition to any and all rights and remedies
      allowed by law or equity, shall upon such termination be entitled to
      recover damages in an amount equal to the then present value of the rent
      reserved in this Lease for the entire residue of the stated term hereof,
      less the fair rental value of the Premises for the residue of the stated
      term hereof, and neither Tenant nor any person claiming through or under
      Tenant, or by virtue of any statue or order of any court, shall be
      entitled to possession of the Premises but shall forthwith quit and
      surrender the Premises to Landlord.
<PAGE>
Lease
Page 25

       Nothing herein contained shall limit or prejudice the right of Landlord
       to prove and obtain as liquidated damages by reason of any such
       termination an amount equal to the maximum allowed by any statute or rule
       of law in effect at the time when, and governing the proceedings which,
       such damages are to be proved, whether or not such amount be greater,
       equal to, or less than the amount of damages recoverable under the
       provisions of this Paragraph.

18.2   EFFECT OF LEASE ASSIGNMENT DURING BANKRUPTCY

18.2.1 In the event that any proceeding under the Bankruptcy Act is instituted
       in which Tenant is the debtor and this Lease is assigned to any person or
       entity pursuant to the provisions of the Bankruptcy Code, 11 U.S.C. 101
       et. seq., any and all monies or other considerations payable or otherwise
       to be delivered in connection with such assignment shall be paid or
       delivered to Landlord, shall be and remain the exclusive property of
       Landlord and shall not constitute property of Tenant or of the estate of
       Tenant with the meaning of the Bankruptcy Code. Any and all monies or
       other considerations, constituting Landlord's property under the
       preceding sentence not paid or delivered to Landlord shall be held in
       trust for the benefit of Landlord and be promptly paid to or turned over
       to Landlord.

18.2.2 If Tenant assumes this Lease and proposes to assign the same pursuant to
       the provisions of the Bankruptcy Code, 11 U.S.C. 101 et. seq. to any
       person or entity who shall have made a bonafide offer to accept an
       assignment of this Lease on terms acceptable to the Tenant, then notice
       of such proposed assignment, setting forth (i) the name and address of
       such person, (ii) all of the terms and conditions of such offer and (ii)
       the adequate assurance to be provided Landlord, to assure such person's
       performance under the Lease, including, without limitations, the
       assurance referred to in Section 365(b)(3) of the Bankruptcy Code, shall
       be given to Landlord by Tenant no later than ten (10) days prior to the
       date that the Tenant shall make application to the court of competent
       jurisdiction for authority and approval to enter into such assignment and
       assumption, and Landlord shall thereupon have the prior right and option
       to be exercised by notice to Tenant given at any time prior to the
       effective date of such proposed assignment, to accept an assignment of
       this Lease on the same terms
<PAGE>
Lease
Page 26

       and conditions and for the same consideration, if any, as the bonafide
       offer made by such person, less any brokerage commissions which may be
       payable our of the consideration to be paid by such person for such
       assignment of this Lease.

18.2.3 Any person or entity to which this Lease is assigned pursuant to
       provisions of the Bankruptcy Code, 11 U.S.C. 101 et. seq. shall be deemed
       without further act or deed to have assumed all of the obligations
       arising under this Lease on and after the date of such assignment. Any
       such assignee shall upon demand execute. and deliver to Landlord an
       instrument confirming such assumption.

                                19. MISCELLANEOUS

19.1   BROKERS. Tenant represents and warrants to Landlord that it has not had
       dealings with any broker or finder other than as listed in Section 1.14
       in locating the Premises and that it knows of no other person who is or
       might be entitled to a commission, finder's fee or other like payment in
       connection herewith and does hereby indemnify and agree to hold Landlord
       harmless from and against any and all claims, liabilities and expenses
       that Landlord may incur should such representation and warranty to
       incorrect. Landlord agrees to indemnify and hold Tenant harmless from any
       claims or liability to any broker or such person relating to the leasing
       of the Premises; provided, however, that Landlord shall not be obligated
       to Tenant for any claims or liability to any broker or other person whose
       identity Tenant has failed to disclose to Landlord as required by this
       Section.

19.2   PERFORMANCE. All payments to be made under this Lease shall be made
       without prior legal notice or demand unless otherwise provided herein, in
       legal currency of United States of America. Time is hereby made of the
       essence of each and every one and all of the terms, covenants and
       conditions to be kept, observed or performed under this Lease.

19.3   NOTICES AND COMMUNICATIONS. All notices, requests, demands, and other
       communications required or permitted to be given under this Lease shall
       be in writing and shall be deemed to have been duly given on the date of
       delivery if delivered personally to the party to whom notice is to be
       given, or on the second business day following the day of mailing, if
       mailed to the party to whom notice to be given, by
<PAGE>
Lease
Page 27

      first class mail, registered or certified, return receipt requested,
      postage prepaid and property addressed to Landlord at:

                           Middleton Mark Twain Center

      and to Tenant at the suite number of the Premises as set forth in Section
      1.3, or

                               Pacific State Bank

      Either party may change its address for purposes of this Section by giving
      the other party written notice of the new address in the manner set forth
      above. Any notice required by this Lease may constitute a notice required
      by Section 1161 of the California Code of Civil Procedure provided such
      notice otherwise complies with the requirements of such Section and
      Section 1162 of the California Code of Civil procedure.

19.4  CONFLICT OF LAWS. This Lease shall be governed by and construed pursuant
      to the laws of the State of California.

19.5  ATTORNEY'S FEES. If Tenant or Landlord brings any action for any damages
      or other relief against the other or for a declaration or determination of
      any matter relating to this Lease, including a suit by Landlord for the
      recovery of rent or other payments from Tenant or for possession of the
      Premises, the losing party shall pay to the successful party a reasonable
      sum for attorney's fees in such suit and such obligation shall be incurred
      on commencement of any action whether or not such action is prosecuted to
      judgment or final determination.

19.6  PRIOR AGREEMENT AND AMENDMENTS. This lease and any other written
      agreements dated as of the date of this Lease contain all the terms and
      conditions agreed upon by the Landlord and Tenant with respect to the
      Premises of the Building. All prior negotiations, correspondence and
      agreements are superseded by this Lease and any other contemporaneous
      documents, and each of the parties hereto agrees that it has not set forth
      in this Lease or such contemporaneous documents. This Lease may not be
      modified or changed except by written instrument by Landlord and Tenant.

19.7  RELATIONSHIP OF PARTIES. Neither the method of computation of rent nor any
      other provisions contained in this Lease nor any acts of the parties shall
      be deemed or
<PAGE>
Lease
Page 28

      construed by the parties or by any third person to create the relationship
      of principal and agent or of partnership or of joint venture or of any
      association between Landlord and Tenant, other than the relationship of
      Landlord and Tenant.

19.8  WAIVER. The waiver by Landlord of any breach of any tern, covenant or
      condition herein contained shall not be deemed to be a waiver of any
      subsequent breach of the same or any other term, covenant or condition
      herein contained, nor shall any custom or practice which may grow up
      between the parties in the administration of the terms hereof be deemed a
      waiver of or in any way effect, the right of Landlord to insist upon the
      performance by Tenant in strict accordance with said terms. The subsequent
      acceptance of rent hereunder by Landlord shall not be deemed a waiver of
      any proceeding breach by Tenant of any term, covenant or condition of this
      Lease, other than the failure of Tenant to pay the particular rent so
      accepted, regardless of Landlord's knowledge of such proceeding breach at
      the time of acceptance of such rent.

19.9  PARTIAL INDIVIDUALITY. Any provision of this Lease which shall prove to be
      invalid, void or illegal in no way affects, impairs or invalidates any
      other provision hereof.

19.10 HOLDING OVER. If Tenant remains in possession of all or any part of the
      Premises after the expiration of the term hereof, with the express or
      implied consent of Landlord, such tenancy shall be from month to month
      with amount at discretion of Landlord.

19.11 SURRENDER. The voluntary or other surrender of this Lease by Tenant, or a
      mutual cancellation thereof, shall not work a merger, and shall, at the
      option of Landlord, operate as an assignment to it of any or all subleases
      or Estonians.

19.12 SUCCESSORS AND ASSIGNS. This Lease shall be binding upon and shall inure
      to the benefit of the parties hereto and their respective permitted heirs,
      representative, successors and assigns.

19.13 EXHIBITS. All exhibits referred to are attached to this Lease and
      incorporated by reference.
<PAGE>
Lease
Page 29

19.14 MODIFICATION FOR LENDER. If, in connection with obtaining financing for
      the building, the lender shall request reasonable modifications in this
      Lease as a condition to such financing, Tenant shall not unreasonably
      withhold, delay or defer its consent hereto, provided that such
      modifications do not increase the obligations of Tenant hereunder or
      materially adversely affect the leasehold interest hereby created.

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

19.16 SIGNS AND DIRECTORY. Landlord has the sole right to determine the type of
      directory, bulletin board and sign and the content of each (including,
      without limitation, size of letters, style, color and whether affixed or
      painted). See Exhibit D

19.17 EXTERIOR SIGNS. Landlord shall have the exclusive right for its signs to
      use the exterior walls and roof of the Building in which the Premises are
      located. Tenant may have two (2)' modular outdoor illuminated signs. The
      type and location of such sign approval is set forth in Exhibit D of this
      Lease. See Exhibit D

19.18 BUILDING NAME. The tenant shall not use the name of the Building for any
      purpose other than as the address of the business to be conducted by
      Tenant in the Premises. Landlord shall have the right, without liability
      to Tenant for any damage or injury (all claims for damage being hereby
      released) and without giving rise to any claim for set-offs or abatement
      of rent to change the name or street address of the Building.

19.19 RULES AND REGULATIONS. Tenant shall faithfully observe and comply with the
      rules and regulations printed on or annexed to this Lease and all
      reasonable and nondiscriminatory modifications thereof and additions
      thereto from time to time put into effect by Landlord. Landlord shall not
      be responsible to Tenant for the violation or nonperformance by any other
      Tenant or occupant of the Building of any said rules and regulations and
      all persons entering and/or using Premises at Tenant's request or with
      Tenant' permission.

19.20 PERFORMANCE BY TENANT. All covenants and agreements to be performed by
      Tenant under any of the terms of this Lease shall be performed by Tenant
      at
<PAGE>
Lease
Page 30

      Tenant's sole cost and expense and without any abatement of rent. If
      Tenant shall fail to pay any sum of money, other than rent, required to be
      paid by it hereunder or shall fail to perform any other act on its part to
      be performed hereunder, and such failure shall continue for ten (10) days
      after notice thereof by Landlord, Landlord may, without waiving or
      releasing Tenant from any obligations of Tenant, but shall not be
      obligated to make any such payment or perform any such other act on
      Tenant's part to be made or performed as in this Lease provided.

      All sums so paid by Landlord and all necessary incidental costs together
with interest thereon at an annual rate two (2) percentage points above the
prime annual interest rate as listed in the West Coast edition of the Wall
Street Journal in effect at the due date (but not more than the maximum rate
permissible by law), from the date of such payment by Landlord shall be payable
to Landlord on demand. Tenant covenants to pay any such sums, and the Landlord
shall have (in addition to any other right or remedy of Landlord) the same
rights and remedies in the event of the nonpayment thereof by Tenant as in the
case of default by Tenant in the payment of rent.

19.22 END OF TERM. At the termination of this Lease, Tenant shall surrender the
      Premises to Landlord in as good condition and repair as reasonable and
      proper use thereof will permit. Tenant may remove, and at Landlord's
      request shall remove, all of its trade fixtures, personal property and
      signs, provided such removal will not structurally injure the Premises,
      and Tenant agrees to restore the Premises to its original condition,
      reasonable wear and tear excepted. Any property not so removed within ten
      (10) days after termination shall be deemed abandoned by Tenant and
      thereafter Landlord's property which Landlord may use, remove or dispose
      of as Landlord sees fit without obligation to Tenant. Tenant shall
      reimburse Landlord for any costs incurred by Landlord in such removal or
      disposition or in repairing or restoring the Premise. Tenant shall further
      indemnify Landlord against all losses, costs and damages resulting from
      Tenant's failure and delay in surrendering the Premises as above provided.

19.23 IDENTIFICATION OF TENANT. If more than one person executes this Lease as
      Tenant (a) each of them is jointly and severally liable for the keeping,
      observing and
<PAGE>
Lease
Page 31

      performing of all of the terms, convenants, conditions, provisions and
      agreements of this Lease to be kept, observed and performed by Tenant and
      (b) the term "Tenant" as used in this Lease shall mean and include each of
      them jointly and severally and the act of or notice from or notice or
      refund to or the signature of any one or more of them, with respect to the
      tenancy of this Lease, including, but not limited to, any renewal,
      extension, expiration, termination or modification of this Lease shall be
      binding upon each and all of the persons executing this Lease as Tenant
      with the same force and effect as each and all of them had so acted or so
      given or received such notice or refund or so signed.

19.24 TENANT AS PARTNERSHIP. If a partnership or more than one legal person
      executes this Lease as Tenant, (i) each partner is jointly and severally
      liable for keeping, observing and performing all the terms, covenants,
      conditions, provisions and agreements of this Lease to be kept, observed
      or performed by Tenant, and (ii) the term "Tenant" as used in this Lease
      shall mean and include each of them jointly and severally and the act of
      or notice from, or notice or refund to, or the signature o, any one or
      more of them, with respect to this Lease, including but not limited to,
      any renewal, extension, expiration, termination or modification of this
      Lease, shall be binding upon each and all of the persons constituting
      Tenant with the same force and effect as if each and all of them had so
      acted or so given or received such notice or refund or so signed.
      Termination of Tenant, if partnership, shall be deemed to be an assignment
      jointly to all of the partners, who shall thereafter be subject to the
      terms of this Lease as if each and all such former partners had initially
      signed this Lease as individuals.

19.25 TENANT AS CORPORATION. If tenant executes this Lease as a corporation,
      then Tenant and the persons executing this Lease on behalf of Tenant
      represent and warrant that the individuals executing this Lease on
      Tenant's behalf are duly authorized to execute and deliver this Lease on
      its behalf in accordance with a duly adopted resolution of the board of
      directors of Tenant, a copy of which is to be delivered to Landlord on
      execution hereof, and in accordance with the By-Laws of Tenant and that
      this Lease is binding upon Tenant in accordance with its terms.
<PAGE>
Lease
Page 32

19.26 COMPLIANCE WITH LAW. Tenant shall not use the Premises or permit anything
      to be done in or about the Premises which will in any way conflict with
      any law, statute, ordinance or government rule or regulation or any
      covenant, condition or restriction now in force or which may hereafter be
      enacted promulgated. Tenant shall, at its sole cost and expense, promptly
      comply with laws, statutes, ordinances and governmental rules, regulations
      or requirements, including such rules and regulations as the Landlord may
      institute, now in force or which may hereafter be in force, and with the
      requirements of any board of fire insurance underwriters or other similar
      bodies now or hereafter constituted relating to, or affecting the
      condition, use or occupancy of the Premises excluding structural changes
      not related to or affected by Tenant's improvement or acts. The judgment
      of any court of competent jurisdiction or admission of Tenant in any
      action against Tenant, whether Landlord be a party thereto or not that
      Tenant has violated any law, statute, ordinance or governmental rule,
      regulation or requirement, or any rule or regulation adopted by Landlord,
      shall be conclusive of that fact as between the Landlord and Tenant.

20.   EXTENSION OF LEASE TERM

      The Tenant shall have the right to extend said Lease for an additional 60
month/five year period subject to the following terms:

      a.    An agreed increase/decrease in monthly lease payments acceptable to
            the Tenant and Landlord.

      b.    90 day written notification to the Landlord that the lease term is
            to be extended.

      IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the
date set forth below.

TENANT:                                    LANDLORD:

By: /s/ [ILLEGIBLE]                        By: /s/ [ILLEGIBLE]
   --------------------------                 --------------------------(Exhibit 10.3)

                           STANDARD OFFICE LEASE--NET
                   AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION

                                     [LOGO]

1..Basic Lease Provisions ("Basic Lease Provisions")

      1.1. Parties: This Lease dated for reference purposes only, January 20,
1998, is made by and between Hooman and Setareh Madyoon, (herein called
"Lessor") and Pacific State Bank, doing business under the name of Pacific State
Bank, (herein called "Lessee").

      1.2 Premises: Suite Number(s) 3 floors, consisting of approximately 1,200
square feet, more or less, as defined in paragraph 2 and as shown on Exhibit "A"
hereto (the "Premises").

      1.3 Building: commonly described as being located at 2680 Tracy Boulevard
in the City of Tracy, County of San Joaquin, State of California, as more
particularly described in Exhibit N/A hereto, and as defined in paragraph 2.

      1.4.: Use: as a Bank branch and all related uses thereto, subject to
paragraph 6.

      1.5 Term: 12 months commencing February 1st 1998 ("Commencement Date") and
ending January 31, 1999 as defined in paragraph 3.

      1.6 Base Rent: $1,200.00 per month payable on the ___day of each month,
per paragraph 4.1 _________________.

      1.7 Base Rent Increase: On February 1, 1999 the monthly Ease Rent payable
under paragraph 1.6 above shall be adjusted as provided in paragraph 4.3 below.

      1.8 Rent Paid Upon Execution: $1,560.00 for February rent including
tenants share of CAM's.

      1.9 Security Deposit: $1,800.00 waived per web 1/22/98 (KA).

      1.10 Lessee's Share of Operating Expenses: 18% as defined in paragraph
4.2.

2. Premises, Parking and Common Areas.

      2.1 Premises: The Premises are a portion of a building, herein sometimes
referred to as the "Building" identified in paragraph 1.3 of the Basic Lease
Provisions. "Building" shall include adjacent parking structures used in
connection therewith. The Premises, the Building, the Common Areas, the land
upon which the same are located, along with all other buildings and improvements
thereon or thereunder, are herein collectively referred to as the "Office
Building Project:" Lessor hereby leases to Lessee and Lessee leases from Lessor
for the term, at the rental, and upon all of the conditions set forth herein,
the real property referred to in the Basic Lease Provisions, paragraph 1.2, as
the "Premises," including rights to the Common Areas as hereafter specified.

      2.2 Vehicle Parking: So long as Lessee is not in default, and subject to
the rules and regulations attached thereto, and as established by Lessor from
time to time, Lessee shall be entitled to rent and use 4 parking spaces in the
Office Building Project at the monthly rate applicable from time to time for
monthly parking as set by Lessor and/or its licensee.

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

            2.2.2 The monthly parking rate per parking space will be $N/A per
month at the commencement of the term of this Lease and is subject to change
upon five (5) days prior written notice to Lessee. Monthly parking fees shall be
payable one month in advance prior to the first day of calendar month.

      2.3 Common Areas--Definition. The term "Common Areas" is defined as all
areas and facilities outside the Premises and within the exterior boundary line
of the Office Building Project that are provided and designated by the Lessor
from time to time for the general non-exclusive use of Lessor, Lease and of
other lessees of the Office Building Project and their respective employee,
suppliers, shippers, customers and invitees, including but not limited to common
entrances, lobbies, corridors, stairways and stairwells, public restrooms,
elevators, escalators, parking areas to the extent not otherwise prohibited by
this Lease, loading and unloading areas, trash areas, roadways, sidewalks,
walkway, parkways ramps, driveways, landscaped areas and decorative walls.

2.4 Common Areas--Rules and Regulations. Lessee agrees to abide by and conform
to the rules and regulations attached hereto as Exhibit [ILLEGIBLE] with respect
to the Office Building Project and Common Areas, and to cause its employees,
suppliers, shippers, customer and invitees to so abide and conform. Lessor or
such other person(s) as Lessor may appoint shall have the exclusive control and
management of the Common Areas and shall have the right, from time to time, to
modify, amend and enforce said rules and regulations. Lessor shall not be
responsible to Lessee for the non-compliance with said rules and regulations by
other lessees, their agents, employees and invitees of the Office Building
Project.

      2.5 Common Areas--Changes. Lessor shall have the right, in Lessor's sole
discretion, form time to time:

            (a) To make changes to the Building Interior and exterior and Common
Areas, including, without limitation, changes in the location, size, shape,
number, and appearance thereof, including but not limited to lobbies, windows,
stairways, air shafts, elevators, escalators, restrooms, driveways, entrances,
parking spaces, parking areas, loading and unloading areas, ingress, egress,
direction of traffic, decorative walls, landscaped areas an walkways; provided,
however, Lessor shall at all times provide the parking facilities required by
applicable law:

            (b) To close temporarily any of the common Areas for maintenance
purposes so long as reasonable access to the Premises remains available;

            (c) To designate other land and improvements outside the boundaries
of the Office Building Project to be a part of the Common Areas, provided that
such other land and improvements have a reasonable and functional relationship
to the Office Building Project;

            (d) To add additional buildings and Improvements to the Common
Areas;

            (e) To use the Common Areas while engaged in making additional
improvements, repairs or alterations to the Office Building Project, or any
portion thereof;

            (f) To do and perform such other acts and make such other changes
in, to or with respect to the Common Areas and Office Building Project as Lessor
may, in the exercise of sound business judgment deem to be appropriate.

3. Term.

      3.1 Term. The term, and Commencement Date of the Lease shall be as
specified in paragraph 1.5 of the Basic Lease Provisions.

      3.2 Delay in Possession. Notwithstanding said commencement Date, if for
any reason Lessor cannot deliver possession of the Premises to Lessee on said
date and subject to paragraph 3.2.2, Lessor shall not be subject to any
liability therefore, nor shall such failure affect the validity of this Lease or
the obligations of Lessee hereunder or extend the term hereof; but in such case,
Lessee shall not be obligated to pay rent or perform any other obligation of
Lessee under the terms of this Lease, except as may be otherwise provided in
this Lease, until possession of the Premises is tendered to Lessee, as
hereinafter defined; provided, however, that if Lessor shall not have delivered
possession of the Premises within sixty (60) days following said Commencement
Date, as the same may be extended under the terms of a Work Letter executed by
Lessor and Lessee. Lessee may, at Lessee's option, by notice in writing to
Lessor within ten (10) days thereafter, cancel this Lease, in which event the
parties shall be discharged from all obligations hereunder; provided, however,
that, as to Lessee's obligations, Lessee first reimburses Lessor for all costs
incurred for Non-Standard Improvements and, as to Lessor's obligations, Lessor
shall return any money previously deposited by Lessee (less any off sets due
Lessor for Non-Standard Improvements); and provided further, that if such
written notice by Lessee is not received by Lessor within said ten (10) day
period, Lessee's right to cancel this Lease hereunder shall terminate and be of
no further force or effect.

                                                      Initials: /s/ [ILLEGIBLE]
                                                              ------------------

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

                               FULL SERVICE--NET

(C) 1984 American Industrial Real Estate Association

                               PAGE 1 OF 10 PAGES
<PAGE>

            3.2.1 Possession Tendered--Defined. Possession of the Premises shall
be deemed tendered to Lessee ("Tender of Possession") when (1) the
improvements to be provided by Lessor under this Lease are substantially
completed, (2) the Building utilities are ready for use in the Premises, (3)
Lessee has reasonable access to the Premises, and (4) ten (10) days shall have
expired following advance written notice to Leassee of the occurrence of the
manors described in (1), (2) and (3), above of this paragraph 3.2.1.

            3.2.2 Delays Caused by Lessee. There shall be no abatement of rent,
and the sixty (60) day period following the Commencement Date before which
Lessee's right to cancel this Lease accrues under paragraph 3.2, shall be deemed
extended to the extent of any delays caused by acts or omissions of Lessee, its
agents, employees and contractors.

      3.3 Early Possession. If Lessee occupies the Premises prior to said
Commencement Date, such occupancy shall be subject to all provisions of this
Lease, such occupancy shall be change the termination date, and Lessee shall pay
rent for such occupancy.

      3.4 Uncertain Commencement. In the event commencement of the Lease term is
defined as the completion of the improvements, Lessee and Lessor shall execute
an amendment to this Lease establishing the date of Tender of Possession (as
defined in paragraph 3.2.1) or the actual taking of possession by Lessee,
whichever first occurs, as the Commencement Date.

4. Rent.

      4.1 Base Rent. Subject to adjustment as hereinafter provided in paragraph
4.3, and except as may be other expressly provided in this Lease, Lessee shall
pay to Lessor the Base Rent for the Premises set forth in paragraph 1.6 of the
Basic Lease Provision, without offset or deduction. Lessee shall pay Lessor
upon execution hereof the advance Base Rent described in paragraph 1.8 of the
Basic Lease Provisions. Rent for any period during the term hereof which is for
less than one month shall be prorated based upon the actual number of days of
the calendar month involved. Rent shall be payable in lawful money of the United
States to Lessor at the address stated herein or to such other persons or at
such other places as Lessor may designate in writing.

      4.2 Operating expense. Lessee shall pay to Lessor during the term hereof,
in addition to the Base Rent, Lessee's Share, as hereinafter defined of all
Operating Expenses, as hereinafter defined, during each calendar year of the
term of this Lease, in accordance with the following provisions:

            (a) "Lessee's Share" is defined, for purposes of this Lease, as the
percentage set forth in paragraph 1.10 of the Basic Lease Provisions, which
percentage has been determined by dividing the approximate square footage of the
Premises by the total approximate square footage of the rentable space contained
in the Office Building Project. It is understood and agreed that the square
footage figures set forth in the Basic Lease Provisions are approximations
which Lessor and Lessee agree are reasonable and shall not be subject to
revision except in connection with an actual change in the size of the Premises
or a change in the space available for lease in the Office Building Project.

            (b) "Operating Expanses" is defined, for purposes of this Lease, to
include all costs, if any, incurred by Lessor in the exercise of its reasonable
discretion, for:

                  (i) The operation, repair, maintenance, and replacement, in
neat, clean, safe, good order and condition, of the Office Building Project,
including but not limited to, the following:

                        (aa) The Common Areas, including their surfaces,
coverings, decorative items, carpets, drapes and window coverings, and including
parking areas, loading and unloading areas, trash areas, roadways, sidewalks,
walkways, stairways, parkways, driveways, landscaped areas, striping, bumpers,
irrigation systems, Common Area lighting facilities, building exteriors and
roofs, fences and gates;

                        (bb) All heating, air conditioning, plumbing, electrical
systems, life safety equipment, telecommunication and other equipment used in
common by, or for the benefit of, lessees or occupants of the Office Building
Project including elevators and escalators, tenant directories, fire detection
systems including sprinkler system maintenance and repair.

                  (ii) Trash disposal, janitorial and security services;

                  (iii) Any other service to be provided by Lessor that is
elsewhere in this Lease stated to be an "Operating Expense";

                  (iv) The cost of the premiums for the liability and property
insurance policies to be maintained by Lessor under paragraph 8 hereof;

                  (v) The amount of the real property taxes to be paid by Lessor
under paragraph 10.1 hereof;

                  (vi) The cost of water, sewer, gas, electricity and other
publicly mandated services to the Office Building Project;

                  (vii) Labor, salaries and applicable fringe benefits and
costs, materials, supplies and tools, used in maintaining and/or cleaning the
Office Building Project and accounting and a management fee attributable to the
operation of the Office Building Project;

                  (viii) Replacing and/or adding improvements mandated by any
governmental agency and any repairs or removals necessitated thereby amortized
over its useful life according to Federal income tax regulations or guidelines
for depreciation thereof (including interest on the unamortized balance as is
then reasonable in the judgment of Lessor's accountants);

                  (ix) Replacements of equipment or improvements that have a
useful life for depreciation purpose according to Federal income tax
guidelines of five (5) years or less, as amortized over such life.

            (c) Operating Expenses shall not include the costs of replacements
of equipment or improvements that have a useful life for federal Income tax
purposes in excess of five (5) years unless it is of the type described in
paragraph 4.2(b)(viii), in which case their cost shall be included as above
provided.

            (d) Operating Expenses shall not include any expenses paid by any
lessee directly to third parties, or as to which Lessor is otherwise reimbursed
by any third party, other tenant, or by insurance proceeds.

            (e) Lessee's Share of Operating Expenses shall be payable by Lessee
within ten (10) days after a reasonably detailed statement of actual expenses is
presented to Lessee by Lessor. At Lessor's option, however, an amount may be
estimated by Lessor from time to time of Lessee's Share of annual Operating
Expenses and the same shall be payable monthly or quarterly, as Lessor shall
designate, during each calendar year of the Lease term, on the same day as the
Base Rent is due hereunder. In the event that Lessee pays Lessor's estimate of
Lessee's share of Operating Expenses as aforesaid, Lessor shall deliver to
Lessee within sixty (60) days after the expiration of each calendar year a
reasonably detailed statement showing Lessee's Share of the actual Operating
Expenses incurred during the preceding year. If Lessee's payments under this
paragraph 4.2(e) during said preceding calendar year exceed Lessee's Share as
indicated on said statement, Lessee shall be entitled to credit the amount of
such overpayment against Lessee's Share of Operating Expenses next falling due.
If Lessee's payments under this paragraph during said preceeding calendar year
were less than Lessee's Share as indicated on said statement, Lessee shall pay
to Lessor the amount of the deficiency within ten (10) days after delivery by
Lessor to Lessee of said statement.

4.3 Rent Increase.

            4.3.1 At the times set forth in paragraph 1-7 of the Basic Lease
Provisions, the monthly Base Rent payable under paragraph 4.1 of this Lease
shall be adjusted by the increase, if any, in the Consumer Price Index of the
Bureau of Labor statistics of the Department of Labor for All Urban Consumers,
(1967=100), "All items" for the city nearest the location of the Building,
herein referred to "C.P.I." since the date of this Lease.

            4.3.2 The monthly Base Rent payable pursuant to paragraph 4.3.1
shall be calculated as follows: the Basic Rent payable for the first month of
the term of this Lease, as set forth in paragraph 4.1 of this Lease, shall be
multiplied by a fraction the numerator of which shall be the C.P.I. of the
calendar month during which the adjustment is to take effect, and the
denominator of which shall be the C.P.I. for the calendar month in which the
original Lease term commences. The sum so calculated shall constitute the new
monthly Base Rent hereunder, but, in no event, shall such new monthly Base Rent
be less than the Base Rent payable for the month immediately preceding the date
for the rent adjustment.

            4.3.3 In the event the compilation and/or publication of the C.P.I.
shall be transferred to any other governmental department or bureau or agency or
shall be discontinued, than the Index most nearly the same as the C.P.I. shall
be used to make such calculations in the event that Lessor and Lessee cannot
agree on such alternative index, then the matter shall be submitted for decision
to the American Arbritration Association in the county in which the Premises are
located in accordance with the then rules of said location and the decision of
the arbitrations shall be binding upon the parties, notwithstanding one party
failing to appear after due notice of the proceeding. The cost of said
Arbitrators shall be paid equally by Lessor and Lessee.

            4.3.4 Lessee shall continue to pay the rent at the rate previously
in effect until the increase, if any, is determined within five (5) days
following the date on which the increase is determined. Lessee shall make such
payment to Lessor as will bring the increased rental current, commencing with
the effective date of such increase through the date of any rental installments
then due. Thereafter the rental shall be paid at the increased rate.

            4.3.5 At such time as the amount of any change in rental required
by this Lease is known or determined, Lessor and Lessee shall execute an
amendment to this Lease setting forth such change.

      5. Security Deposit. Lessee shall deposit with Lessor upon execution
hereof the security deposit set forth in paragraph 1.9 of the Basic Lease
Provisions as security for Lessee's for faithful performance of Lessee's
obligations hereunder. If Lessee fails to pay rent or other charges due
hereunder, or otherwise defaults with respect to any provision of this Lease,
Lessor may use, apply or retain all or any portion of said deposit for the
payment of any rent or other charge in default for the payment of any other sum
to which Lessor may become obligated by reason of Lessee's default, or to

                                                          Initials:_____________
                                                                   _____________

                               FULL SERVICE--NET

(C) 1984 American Industrial Real Estate Association

                               PAGE 2 OF 10 PAGES

<PAGE>

compensate Lessor for any loss or damage which Lessor may suffer thereby. If
Lessor so uses or applies all or any portion of said deposit, Lessee shall
within ten (10) days after written demand therefor deposit cash with Lessor in
an amount sufficient to restore said deposit to the full amount then required of
Lessee. If the monthly Base Rent shall, from time to time, increase during the
term of this Lease, Lessee shall, at the time of such increase, deposit with
Lessor additional money as a security deposit so that the total amount of the
security deposit held by Lessor shall at all times bear the same proportion to
the then current Base Rent as the initial security deposit bears to the initial
Base Rent set forth in paragraph 1.6 of the Basic Lease Provisions. Lessor shall
not be required to keep said security deposit separate from its general account.
If Lessee performs all of Lessee's obligations hereunder, said deposit, or so
much thereof as has not heretofore been applied by Lessor, shall be returned
without payment of interest or other increment for its use to Lessee (or, at
Lessors option, to the last assignee, if any, of Lessee's interest hereunder) at
the expiration of the term hereof, and after Lessee has vacated the Premises. No
trust relationship is created herein between Lessor and Lessee with respect to
said Security Deposit.

6. Use.

      6.1 Use. The Premises shall be used and occupied only for the purpose set
forth in paragraph 1.4 of the Basic Lease Provisions or any other use which is
reasonably comparable to that use and for no other purpose.

      6.2 Compliance with Laws.

            (a) Lessor warrants to Lessee that the Premises, in the state
existing on the date that the Lease term commences, but without regard to
alterations or improvements made by Lessee or the use for which Lessee will
occupy the Premises, does not violate any covenant or restrictions of record, or
any applicable building code, regulation or ordinance in effect on such Lease
term Commencement Date. In the event it is determined that this warranty has
been violated, then it shall be the obligation of the Lessor, after written
notice from Lessee, to promptly, at Lessor's sole cost and expense, rectify any
such violation.

            (b) Except as provided in paragraph 6.2(a) Lessee shall, at Lessee's
expense, promptly comply with all applicable statutes, ordinances, rules,
regulations, orders, covenants and restrictions of record, and requirements of
any fire insurance underwriters or rating bureaus, now in effect or which may
hereafter come into effect, whether or not they reflect a change in policy from
that now existing, during the term or any part of the term hereof, relating in
any manner to the Premises and the occupation and use by Lessee of the Premises.
Lessee shall conduct its business in a lawful manner and shall not use or permit
the use of the Premises or the Common Areas in any manner that will tend to
create waste or a nuisance or shall tend to disturb other occupants of the
Office Building Project.

6.3 Condition of Premises.

            (a) Lessor shall deliver the Premises to Lessee in a clean condition
on the Lease Commencement Date (unless Lessor is already in possession) and
Lessor warrants to Lessee that the plumbing, lighting, air conditioning, and
heating system in the Premises shall be in good operating condition. In the
event that it is determined that this warranty has been violated, then it shall
be the obligation of Lessor, after receipt of written notice from Lessee setting
forth with specificity the nature of the violation, to promptly, at Lessor's
sole cost, rectify such violation.

            (b) Except as otherwise provided in this Lease, Lessee hereby
accepts the Premises and the Office Building Project in their condition existing
as of the Lease Commencement Date or the date that Lessee takes possession of
the Premises, whichever is earlier, subject to all applicable zoning, municipal,
county and state laws, ordinances and regulations governing and regulating the
use of the Premises, and any easements, covenants or restrictions of record, and
accepts this Lease subject thereto and to all matters disclosed thereby and by
any exhibits attached hereto. Lessee acknowledges that it has satisfied itself
by its own independent investigation that the Premises are suitable for its
intended use, and that neither Lessor nor Lessor's agent or agents has made any
representation or warranty as to the present or future suitability of the
Premises Common Areas, or Office Building Project for the conduct of Lessee's
business.

7. Maintenance, Repairs, Alterations and Common Area Services.

      7.1 Lessor's Obligations. Lessor shall keep the Office Building Project,
including the Premises, interior and exterior walls, roof, and common areas, and
the equipment whether used exclusively for the Premises or in common with other
premises, in good condition and repair; provided, however, Lessor shall not be
obligated to paint, repair or replace wall coverings, or to repair or replace
any improvements that are not of ordinarily a part of the Building or are above
then Building standards. Except as provided in paragraph 9.5, there shall be no
abatement of rent or liability of Lessee, on account of any injury or
interference with Lessee's business with respect to any improvements,
alterations or repairs made by Lessor to the Office Building Project or any part
thereof. Lessee expressly waives the benefits of any statute now or hereafter in
effect which would otherwise afford Lessee the right to make repairs at Lessor's
expense or to terminate this Lease because of Lessor's failure to keep the
Premises in good order, condition and repair.

7.2 Lessee's Obligations.

            (a) Notwithstanding Lessor's obligation to keep the Premises in good
condition and repair. Lessee shall be responsible for payment of the cost
thereof to Lessor as additional rent for that portion of the cost of any
maintenance and repair of the Premises, or any equipment (wherever located) that
serves only Lessee or the Premises, to the extent such cost is attributable
to causes beyond normal wear and tear. Lessee shall be responsible for the cost
of painting, repairing or replacing wall coverings, and to repair or replace any
Premises improvements that are not ordinarily a part of the Building or that are
above then Building standards. Lessor may, at its option, upon reasonable
notice, elect to have Lessee perform any particular such maintenance or repairs
the cost of which is otherwise Lessee's responsibility hereunder.

            (b) On the last day of the term hereof, or on any sooner
termination, Lessee shall surrender the Premises to Lessor in the same condition
as received, ordinary wear and tear excepted, clean and free of debris. Any
damage or deterioration of the Premises shall not be deemed ordinary wear and
tear if the same could have been prevented by good maintenance practices by
Lessee. Lessee shall repair any damage to the Premises occasioned by the
installation or removal of Lessee's trade fixtures, alterations, furnishings and
equipment. Except as otherwise stated in this Lease, Lessee shall leave the air
lines, power panels, electrical distribution systems, lighting fixtures, air
conditioning, window coverings, wall coverings, carpets, wall paneling, ceilings
and plumbing on the Premises and in good operating condition.

7.3 Alterations and Additions.

            (a) Lessee shall not, without Lessor's prior written consent make
any alterations, improvements, additions, Utility installations or repairs in,
or about the Premises, or the Office Building Project. As used in this paragraph
7.3 the term "Utility Installation" shall mean carpeting, window and wall
coverings, power panels, electrical distribution systems, lighting fixtures, air
conditioning, plumbing, and telephone and telecommunication wiring and
equipment. At the expiration of the term, Lessor may require the removal of any
or all of said alterations, improvements, additions or Utility Installations,
and the restoration of the Premises and the Office Building Project their prior
condition, at Lessee's expense. Should Lessor permit Lessee to make its own
alterations, improvements, additions or Utility Installations, Lessee shall use
only such contractor as has been expressly approved by Lessor, and Lessor may
require Lessee to provide Lessor, at Lessee's sole cost and expense, a lien and
completion bond in an amount equal to one and one-half times the estimated cost
of such improvements, to insure Lessor against any liability for mechanic's and
materialmen's liens and to insure completion of the work. Should Lessee make any
alterations, improvements, additions or Utility Installations without the prior
approval of Lessor, or use a contractor not expressly approved by Lessor, Lessor
may, at any time during the term of this Lease, require that Lessee remove any
part or all of the same.

            (b) Any alterations, improvements, additions or Utility
Installations in or about the Premises or the Office Building Project that
Lessee shall desire to make shall be presented to Lessor in written form, with
proposed detailed plans. If Lessor shall give its consent to Lessees's making
such alteration, improvement, addition or Utility Installation, the consent
shall be deemed conditioned upon Lessee acquiring a permit to do so from the
applicable governmental agencies, furnishing a copy thereof to Lessor prior to
the commencement of the work, and compliance by Lessee with all conditions of
said permit in a prompt and expeditious manner.

            (c) Lessee shall pay, when due, all claims for labor or materials
furnished or alleged to have been furnished to or for Lessee at or for use in
the Premises, which claims are or may be secured by any mechanic's or
materialmen's lien against the Premises, the Building or the Office Building
Project, or any interest therein.

            (d) Lessee shall give Lessor not less than ten (10) days' notice
prior to true commencement of any work in the Premises by Lessee, and Lessor
shall have the right to post notices of non-responsibility in or on the Premises
or the Building as provided by law. If Lessee shall, in good faith, contest the
validity of any such lien, claim or demand, then Lessee shall at its sole
expense defend itself and Lessor against the same and shall pay and satisfy any
such adverse judgment that may be rendered thereon before the enforcement
thereof against the Lessor or the Premises, the Building or the Office Building
Project, upon the condition that if Lessor shall require, Lessee shall furnish
to Lessor a surety bond satisfactory to Lessor in an amount equal to such
contested lien claim or demand indemnifying Lessor against liability for the
same and holding the Premises, the Building and the Office Building Project free
from the effect of such lien or claim. In addition, Lessor may require Lessee to
pay Lessor's reasonable attorneys fees and costs in participating in such action
if Lessor shall decide it is to Lessor's best interest so to do.

            (e) All alterations, improvements, additions and Utility
Installations (whether or not such Utility Installations constitute trade
fixtures of Lessee), which may be made to the Premises by Lessee. including but
not limited to, floor coverings, panelings, doors, drapes, built-ins, moldings,
sound attenuation, and lighting and telephone or communication systems, conduit,
wiring and outlets, shall be made and done in a good and workmanlike manner and
of good and sufficient quality and materials and shall be the property of Lessor
and remain upon and be surrendered with the Premises at the expiration of the
Lease term, unless Lessor requires their removal pursuant to paragraph 7.3(a).
Provided Lessee is not in default, notwithstanding the provisions of this
paragraph 7.3(e), Lessee's personal property and equipment, other than that
which is affixed to the Premises so that it cannot be removed without material
damage to the Premises or the Building, and other than Utility Installations,
shall remain the property of Lessee and may be removed by Lessee subject to the
provisions of paragraph 7.2.

            (f) Lessee shall provide Lessor with as-built plans and
specifications for any alterations, improvements, additions or Utility
Installations.

                                                          Initials:_____________
                                                                   _____________

                               FULL SERVICE--NET

(C) 1984 American Industrial Real Estate Association

                               PAGE 3 OF 10 PAGES

<PAGE>

      7.4 Utility Additions, Lessor reserves the right to install new or
additional utility facilities throughout the Office Building Project for the
benefit of Lessor or Lessee, or any other lessee of the Office Building Project,
including, but not by way of limitation, such utilities as plumbing, electrical
systems, security systems, communication systems, and fire protection and
detection systems, so long as such installations do not unreasonably interfere
with Lessee's use of the Premises.

8. Insurance; Indemnity.

      8.1 Liability Insurance--Lessee. Lessee shall, at Lessee's expense, obtain
and keep in force during the term of this Lease a policy of Comprehensive
General Liability insurance utilizing an Insurance Services Office standard form
with Broad Form General Liability Endorsement (GLO4O4), or equivalent, in an
amount of not less than $1,000,000 per occurrence of bodily injury and property
damage combined or in a greater amount as reasonably determined by Lessor and
shall insure Lessee with Lessor as an additional insured against liability
arising out of the use, occupancy or maintenance of the Premises. Compliance
with the above requirement shall not, however, limit the liability of Lessee
hereunder.

      8.2 Liability Insurance-Lessor. Lessor shall obtain and keep in force
during the term of this Lease a policy of Combined Single Liability Bodily
Injury and Broad Form Property Damage Insurance, plus coverage against such
other risks Lessor deems advisable from time to time, insuring Lessor, but not
Lessee, against liability arising out of the ownership, use, occupancy or
maintenance of the Office Building Project in an amount not less than
$5,000,000.00 per occurrence.

      8.3 Property Insurance--Lessee. Lessee shall, at Lessee's expense, obtain
and keep in force during the term of this Lease for the benefit of Lessee,
replacement cost fire and extended coverage insurance with vandalism and
malicious mischief, sprinkler leakage and earthquake sprinkler leakage
endorsements, in an amount sufficient to cover not less than 100% of the full
replacement cost, as the same may exist from time to time, of all of Lessee's
personal property fixtures, equipment and tenant improvements.

      8.4 Property Insurance--Lessor. Lessor shall obtain and keep in force
during the term of this Lease a policy or policies of insurance covering loss or
damage to the Office Building Project Improvements, but not Lessee's personal
property, fixtures, equipment or tenant improvements, in the amount of the full
replacement cost thereof, as the same may exist from time to time, utilizing
Insurance Services Office standard form, or equivalent, providing protection
against all perils included within the classification of fire, extended
coverage, vandalism, malicious mischief, plate glass, said such other perils as
Lessor deems advisable or may be required by a lender having a lien on the
Office Building Project. In addition, Lessor shall obtain and keep in force,
during the term of this Lease, a policy of rental value insurance covering a
period of one year, with loss payable to Lessor, which insurance shall also
cover all Operating Expenses for said period. Lessee will not be named in any
such policies carried by Lessor and shall have no right to any proceeds
therefrom. The policies required by these paragraphs 8.2 and 8.4 shall contain
such deductibles as Lessor or the aforesaid lender may determine. In the event
that the Premises shall suffer an insured loss as defined in paragraph 9.1(f)
hereof, the deductible amounts under the applicable Insurance policies shall be
deemed an Operating Expense. Lessee shall not do or permit to be done anything
which shall invalidate the insurance policies carried by Lessor. Lessee shall
pay the entirety of any increase in the property insurance premium for the
Office Building Project over what it was immediately prior to the commencement
of the term of this Lease if the increase is specified by Lessor's insurance
carrier as being caused by the nature of Lessee's occupancy or any act or
omission of Lessee.

      8.5 Insurance Policies. Lessee shall deliver to Lessor copies of liability
insurance policies require under paragraph 8.1 or certificates evidencing the
existence and amounts of such insurance within seven (7) days after the
Commencement Date of this Lease. No such policy shall be cancellable or subject
to reduction of coverage or other modification except after thirty (30) days
prior written notice to Lessor. Lessee shall, at least thirty (30) days prior to
the expiration of such policies, furnish Lessor with renewals thereof.

      8.6 Waiver of Subrogation. Lessee and Lessor each hereby release and
relieve the other, and waive their entire right of recovery against the other,
for direct or consequential loss or damage arising out of or incident to the
perils covered by property insurance carried by such party, whether due to the
negligence of Lessor or Lessee or their agents, employees, contractors and/or
invitees. if necessary all property insurance policies required under this Lease
shall be endorsed to so provide.

      8.7 Indemnity. Lessee shall indemnify and hold harmless Lessor and its
agents, Lessor's master or ground lessor, partners and lenders, from and against
any and all claims for damage to the person or property of anyone or any entity
arising from Lessee's use of the Office Building Project, or from the conduct of
Lessee's business or from any activity, work or things done, permitted or
suffered by Lessee in or abut the Premises or elsewhere and shall further
indemnify and hold harmless Lessor from and against any and all claims costs and
expenses arising from any breach or default in the performance of any
obligation on Lessee's part to be performed under the terms of this Lease, or
arising from any act or omission of Lease, or any of Lessee's agents,
contractors, employees or invitees and from end against all costs, attorney's
fees, expenses and liabilities incurred by Lessor as the result of any such
use, conduct, activity, work, things done, permitted or suffered, breach,
default or negligence, and in dealing reasonably therewith, including but not
limited to the defense or pursuit of any claim or any action or proceeding
involved therein; and in case any action or proceeding be brought against
Lessor by reason of any such matter. Lessee upon notice from Lessor shall defend
the same at Lessee's expense by counsel reasonably satisfactory to Lessor and
Lessor shall cooperate with Lessee in such defense, Lessor need not have first
paid any such claim in order to be so indemnified. Lessee as a material part of
the consideration to Lessor, hereby assumes all risk of damage to property of
Lessee or injury to persons, in, upon or about the Office Building Project
arising from any cause and Lessee hereby waives all claims in respect thereof
against Lessor.

      8.8 Exemption of Lessor from Liability. Lessee hereby agrees that Lessor
shall not be liable for injury to Lessee's business or any loss of income
therefrom or for loss of or damage to the goods, wares, merchandise or other
property of Lessee, Lessee's employees, invitees, customers, or any other person
in or about the Premises or the Office Building Project, nor shall Lessor be
liable for injury to the person of Lessee, Lessee's employees, agents or
contractors, whether such damage or injury is caused by or results from theft,
fire, steam, electricity, gas, water or ruin, or from the breakage, leakage,
obstruction or other defects of pipes, sprinklers, wires, appliances, plumbing,
air-conditioning or lighting fixtures from any other cause whether said damage
or injury results from conditions arising upon the Premises or upon other
portions of the Office Building Project, or from other sources or places, or
from new construction or the repair, alteration or improvement of any part of
the Office Building Project, or of the equipment, fixtures or appurtenances
applicable thereto, and regardless of whether the cause of such damage or injury
or the means of repairing the same is inaccessible, Lessor shall not be liable
for any damages arising from any act or neglect of any other lessee. occupant or
user of the Office Building Project, nor from the failure of Lessor to enforce
the provisions of any other lease of any other lessee of the Office Building
Project.

      8.9 Representation of Adequate Coverage. Lessor makes no representation
that the limits or forms of coverage of insurance specified in this paragraph 8
are adequate to cover Lessee's property or obligations under this Lease.

9. Damage or Destruction.

      9.1 Definitions.

            (a) "Premises Damage" shall mean if the Premises are damaged or
destroyed to any extent.

            (b) "Premises Building Partial Damage" shall mean if the Building of
which the Premises are a part is damaged or destroyed to the extent that the
cost to repair is less than fifty percent (50%) of the then Replacement Cost of
the Building.

            (c) "Premises Building Total Destruction" shall mean if the Building
of which the Premises are a part is damaged or destroyed to the extent that the
cost to repair is fifty percent (50%) or more of the then Replacement Cost of
the Building.

            (d) "Office Building Project Buildings" shall mean all of the
buildings on the Office Building Project site.

            (e) "Office Building Project Buildings Total Destruction" shall mean
if the Office Building Project Buildings are damaged or destroyed to the extent
that the cost of repair is fifty percent (50%) or more of the then Replacement
Cost of the Office Building Project Buildings.

            (f) "Insured Loss" shall mean damage or destruction which was caused
by an event required to be covered by the insurance described in paragraph 8.
The fact that an Insured Loss has a deductible amount shall not make the loss
an uninsured loss.

            (g) "Replacement Cost" shall mean the amount of money necessary to
be spent in order to repair or rebuild the damaged area to the condition that
existed immediately prior to the damage occurring, excluding all improvements
made by lessees, other than those installed by Lessor at Lessee's expense.

      9.2 Premises Damage; Premises Building Partial Damage.

            (a) Insured Loss: Subject to the provisions of paragraphs 9.4 and
9.5, if at any time during the term of this Lease there is damage, which is an
Insured Loss and which falls into the classification of either Premises Damage
or Premises Building Partial Damage, then Lessor shall, as soon as reasonable
possible and to the extent the required materials and labor are readily
available through usual commercial channels, at Lessor's expense, repair such
damage (but not Lessee's fixtures, equipment or tenant improvements originally
paid for by Lessee) to its condition existing at the time of the damage, and
this Lease shall continue in full force and effect.

            (b) Uninsured Loss: Subject to the provisions of paragraphs 9.4 and
9.5, if at any time during the term of this Lease there is damage which is not
an Insured Loss and which falls within the classification of Premises Damage or
Premises Building Partial Damage, unless caused by a negligent or willful act of
Lessee (in which event Lessee shall make the repairs at Lessee's expense), which
damage prevents Lessee from making any substantial use of the Premises, Lessor
may at Lessor's option either (i) repair such damage as soon as reasonably
possible at Lessor's expense, in which event this Lease shall continue in full
force and effect, or (ii) give written-notice to Lessee within thirty (30) days
after the date of the occurrence of such damage of Lessor's intention to cancel
and terminate this Lease as of the date of the occurrence of such damage, in
which event this Lease shall terminate as of the date of the occurrence of such
damage.

      9.3 Premises Building Total Destruction; Office Building Project Total
Destruction. Subject to provisions of paragraphs 9.4 and 9.5, at any time
during the term of this Lease there is damage, whether or not it is an Insured
Loss, which falls into the classification of either (i) Premises

                                                          Initials:_____________
                                                                   _____________

                               FULL SERVICE--NET

(C) 1984 American Industrial Real Estate Association

                               PAGE 4 0F 10 PAGES

<PAGE>

Building Total Destruction, or (ii) Office Building Project Total Destruction,
then Lessor may at Lessor's option either (i) repair such damage or destruction
as soon as reasonably possible at Lessor's expense (to the extent the required
materials are readily available through usual commercial channels) to its
condition existing at the time of the damage, but not Lessee's fixtures,
equipment or tenant improvements, and this Lease shall continue in full force
and effect, or (ii) give written notice to Lessee within thirty (30) days after
the date of occurrence of such damage of Lessor's intention to cancel and
terminate this Lease, in which case this Lease shall terminate as of the date
of the occurrence of such damage.

      9.4 Damage Near End of Term.

            (a) Subject to paragraph 9.4(b), if at any time during the last
twelve (12) months of the term of this Lease there is substantial damage to the
Premises, Lessor may at Lessor's option cancel and terminate this Lease as of
the date of occurrence of such damage giving written notice to Lessee of
Lessor's election to do so within 30 days after the date of occurrence of such
damage.

            (b) Notwithstanding paragraph 9.4(a), in the event that Lessee has
an option to extend or renew this Lease, and the time within which said option
may be exercised has not yet expired, Lessee shall exercise such option, if it
is to be exercised at all, no later than twenty (20) days after the occurrence
of an Insured Loss falling within the classification of Premises Damage during
the last twelve (12) months of the term of this Lease. If Lessee duly exercises
such option during said twenty (20) day period, Lessor shall, at Lessor expense.
repair such damage, but not Lessee's fixtures, equipment or tenant improvements,
as soon as reasonably possible and this Lease shall continue in full force and
effect. If Lessee fails to exercise such option during said twenty (20) day
period, then Lessor shall at Lessor's option terminate, and cancel this Lease as
of the expiration of said twenty (20) day period by giving written notice to
Lessee of Lessor's election to do so within ten (10) days after the expiration
of said twenty (20) day period, notwithstanding any term or provision in the
grant of option to the contrary.

      9.5 Abatement of Rent; Lessee's Remedies.

            (a) In the event Lessor repairs or restores the Building or Premises
pursuant to the provisions of this paragraph 9, and any part of the Premises are
not usable (including loss of use due to loss of access or essential services),
the rent payable hereunder (including Lessee's Share of Operating Expenses) for
the period during which such damage, repair or restoration continues shall be
abated, provided (1) the damage was not the result of the negligence of Lessee,
and (2) such abatement shall only be to the extent the operation and
profitability of Lessee's business as operated from the Premises is adversely
affected. Except for said abatement of rent; if any, Lessee shall have no claim
against Lessor for my damage suffered by reason of any such damage, destruction,
repair or restoration.

            (b) If Lessor shall be obligated to repair or restore the Premises
or the Building under the provisions of this Paragraph 9 and shall not commence
such repair or restoration within ninety (90) days after such occurrence, or if
Lessor shall not complete the restoration and repair within six (6) months after
such occurrence, Lessee may at Lessee's option cancel and terminate this Lease
by giving Lessor written notice of Lessee's election to do so at any time prior
to the commencement or completion, respectively, of such repair or restoration.
In such event this lease shall terminate as of the date of such notice.

            (c) Lessee agrees to cooperate with Lessor in connection with any
such restoration and repair, including but not limited to the approval and/or
execution of plans and specifications required.

      9.6 Termination--Advance Payments. Upon termination of this Lease pursuant
to this Paragraph 9, an equitable adjustment shall be made concerning advance
rent and any advance payments made by Lessee to Lessor. Lessor shall, in
addition, return to Lessee so much of Lessees security deposit as has not
theretofore been applied by Lessor.

      9.7 Waiver. Lessor and Lessee waive the provisions of any statute which
relate to termination of leases when leased property is destroyed and agree that
such event shall be governed by the terms of this Lease.

10. Real Property Taxes.

      10.1 Payment of Taxes. Lessor shall pay the real property tax, as defined
in paragraph 10.3, applicable to the Office Building Project subject to
reimbursement by Lessee of Lessee's Share of such taxes in accordance with the
provisions of paragraph 4.2, except as otherwise provided in paragraph 10.2.

      10.2 Additional Improvements. Lessee shall not be responsible for paying
any increase in real property tax specified in the tax assessor's records and
work sheets as being caused by additional improvements placed upon the Office
Building Project by other lessees or by Lessor for the exclusive enjoyment of
any other lessee. Lessee shall, however, pay to Lessor at the time that
Operating Expenses are payable under paragraph 4.2(c) the entirety of any
increase in real property tax if assessed solely by reason of additional
improvements placed upon the Premises by Lessee or at Lessee's request.

      10.3 Definition of "Real Property Tax." As used herein, the term "real
property tax" shall include any form of real estate tax or assessment, general,
special, ordinary or extraordinary, and any license fee, commercial rental tax,
improvement bond or bonds, levy or tax (other than inheritance, personal income
or estate taxes) imposed on the Office Building Project or any portion thereof
by any authority having the direct or indirect power to tax, including any city,
county, state or federal government, or any school, agricultural, sanitary,
fire, street, drainage or other improvement district thereof, as against any
legal or equitable interest of Lessor in the Office Building Project or in any
portion thereof, as against Lessor's right to rent or other income therefrom,
and as against Lessor's business of leasing the Office Building Project. The
term "real property tax" shall also include any tax, fee, levy, assessment or
charge (i) in substitution of, partially or totally, any tax, fee, levy,
assessment or charge hereinabove included within the definition of "real
property tax" or (ii) the nature of which was hereinbefore included within the
definition of "real property tax," or (iii) which is imposed for a service or
right not charged prior to June 1, 1978, or, if previously charged, has been
increased since June 1, 1973, or (iv) which is imposed as a result of a change
in ownership, as defined by applicable local statutes for property tax purposes,
of the Office Building Project or which is added to a tax or charge hereinbefore
included within the definition of real property tax by reason of such change of
ownership, or (v) which is imposed by reason of this transaction, any
modifications or changes hereto, or any transfers hereof.

      10.4 Joint Assessment. If the improvements or property, the taxes for
which are to be paid separately by Lessee under paragraph 10.2 or 10.5 are not
separately assessed, Lessee's portion of that tax shall be equitably determined
by Lessor from the respective valuations assigned in the assessor's work sheets
or such other information (which may include the cost of construction) as may be
reasonably available. Lessor's reasonable determination thereof, in good faith,
shall be conclusive.

      10.5 Personnel Property Taxes.

            (a) Lessee shall pay prior to delinquency all taxes assessed against
and levied upon trade fixtures, furnishings, equipment and all other personal
property of Lessee contained in the Premises or elsewhere.

            (b) If any of Lessee's said personal property shall be assessed with
Lessor's real property, Lessee shall pay to Lessor the taxes attributable to
Lessee within ten (10) days after receipt of a written statement setting forth
the taxes applicable to Lessee's property.

11. Utilities.

      11.1 Services Provided by Lessor. Lessor shall provide heating,
ventilation, air conditioning, and janitorial service as reasonably required,
reasonable amounts of electricity for normal lighting and office machines, water
for reasonable and normal drinking and lavatory use, and replacement light
bulbs and/or fluorescent tubes and ballasts for standard overhead fixtures.

      11.2 Services Exclusive to Lessee. Lessee shall pay for all water, gas,
heat, light, power, telephone and other utilities and services specially or
exclusively supplied and/or metered exclusively to the Premises or to Lessee,
together with any taxes thereon. If any such services are not separately
metered to the Premises, Lessee shall pay at Lessor's option, either Lessee's
Share or a reasonable proportion to be determined by Lessor of all charges
jointly metered with other premises in the Building.

      11.3 Hours of Service. Said services and utilities shall be provided
during generally accepted business days and hours or such other days or hours as
may hereafter be set forth. Utilities and services required at other times shall
be subject to advance request and reimbursement by Lessee to Lessor of the cost
thereof.

      11.4 Excess Usage by Lessee. Lessee shall not make connection to the
utilities except by or through existing outlets and shall not install or use
machinery or equipment in or about the Premises that uses excess water, lighting
or power, or suffer or permit any act that causes extra burden upon the
utilities or services, including but not limited to security services, over
standard office usage for the Office Building Project. Lessor shall require
Lessee to reimburse Lessor for any excess expenses or costs that may arise out
of a breach of this subparagraph by Lessee. Lessor may, in its sole discretion,
install at Lessee's expense supplemental equipment and/or separate metering
applicable to Lessee's excess usage or loading.

      11.5 Interruptions. There shall be no abatement of rent and Lessor shall
not be liable in any respect whatsoever for the inadequacy, stoppage,
interruption or discontinuance of any utility or service due to riot, strike,
labor dispute, breakdown, accident, repair or other cause beyond Lessor's
reasonable control or in cooperation with governmental request or directions.

12. Assignment and Subletting.

      12.1 Lessor's Consent Required. Lessee shall not voluntarily or by
operation of law assign, transfer, mortgage, sublet, or otherwise transfer or
encumber all or any part of Lessee's interest in the Lease or in the Premises,
without Lessor's prior written consent, which Lessor or shall not unreasonably
withhold. Lessor shall respond to Lessee's request for consent hereunder in a
timely manner and any attempted assignment, transfer, mortgage, encumbrance or
subletting without such consent shall be void, and shall constitute a material
default and breach or this Lease without the need for notice to Lessee under
paragraph 13.1. "Transfer" within the meaning of this paragraph 12 shall include
the transfer or transfers aggregating: (a) if

                                                          Initials:_____________
                                                                   _____________

                               FULL SERVICE--NET

(C) 1984 American Industrial Real Estate Association

                               PAGE 5 OF 10 PAGES

<PAGE>

Lessee is a corporation, more than twenty-five percent (25%) of the voting stock
of such corporation or (b) if Lessee is a partnership, more than twenty-five
percent (25%) of the profit and loss participation in such partnership.

      12.2 Lessee Affiliate. Notwithstanding the provision of paragraph 12.1
hereof, Lessee may assign or sublet the Premises, or any portion thereof,
Lessor's consent, to any corporation which controls, is controlled by or is
under common control with Lessee, or to any corporation resulting from the
merger or consolidation with Lessee, or to any person or entity which acquires
all the assets of Lessee as a going concern of the business that is being
conducted on the Premises, all of which are referred to as "Lessee Affiliate";
provided that before such assignment shall be effective, (a) said assignee shall
assume, in full, the obligations of Lessee under this Lease and (b) Lessor shall
be given written notice of such assignment and assumption. Any such assignment
shall not, in any way, affect or limit the liability or Lessee under the terms
of the Lease even if after such assignment or subletting the terms of this Lease
are materially changed or altered without the consent of Lessee, the consent of
whom shall not be necessary.

      12.3 Terms and Conditions Applicable to Assignment and Subletting.

            (a) Regardless of Lessor's consent, no assignment or subletting
shall release Lessee of Lessee's obligations hereunder or alter the primary
liability of Lessee to pay the rent and other sums due Lessor hereunder
including Lessee's Share of Operating Expenses, and to perform all other
obligations to be performed by Lessee hereunder.

            (b) Lessor may accept rent from any person other than Lessee pending
approval or disapproval of such assignment.

            (c) Neither a delay in the approval or disapproval of such
assignment or subletting, nor the acceptance of rent shall constitute a waiver
estoppel of Lessor's right to exercise its remedies for the breach of any of
the terms or conditions of this paragraph 12 of this Lease.

            (d) if Lessee's obligations under this Lease have been guaranteed by
third parties, then an assignment or sublease, and Lessor's consent thereto,
shall not be effective unless said guarantors give their written consent to such
sublease and the terms thereof.

            (e) The consent by Lessor to any assignment or subletting shall not
constitute a consent to any subsequent assignment or subletting by Lessee or to
any subsequent or successive assignment or subletting by the sublessee. However,
Lessor may consent to subsequent sublettings and assignments of the sublease or
any amendments or modifications thereto without notifying Lessee or anyone else
liable on the Lease or sublease and without obtaining their consent and such
action shall not relieve such persons from liability under this Lease or said
sub ease; provided, however, such persons shall not be responsible to the extent
any such amendment or modification enlarges or increases the obligations of the
Lessee or sublessee under this Lease or such sublease.

            (f) In the event of any default under this Lease, Lessor may proceed
directly against Lessee, any guarantors or any one else responsible for the
performance of this Lease, including the sublessee, without first exhausting
Lessor's remedies against any other person or entity responsible therefore to
Lessor, or any security held by Lessor or Lessee.

            (g) Lessor's written consent to any assignment or subletting of the
Premises by Lessee shall not constitute an acknowledgement that no default then
exists under this Lease of the obligations to be performed by Lessee nor shall
such consent be deemed a waiver of any then existing default, except as may be
otherwise stated by Lessor at the time.

            (h) The discovery of the fact that any financial statement relied
upon by Lessor in giving its consent to an assignment or subletting was
materially false shall, at Lessors election, render Lessor's said consent null
and void.

      12.4 Additional Terms and Conditions Applicable to Subletting. Regardless
of Lessor's consent the following terms and conditions shall apply to any
subletting by Lessee of all or any part of the Premises and shall be deemed
included in all subleases under this Lease whether or not expressly incorporated
therein.

            (a) Lessee hereby assigns and transfers to Lessor all of Lessee's
interest in all rentals and income arising from any sublease heretofore or
hereafter made by Lessee, and Lessor may collect such rent and income and apply
same toward Lessee's obligations under this Lease, provided, however, that until
a default shall occur in the performance of Lessee's obligations under this
Lease, Lessee may receive, collect and enjoy the rents accruing under such
sublease. Lessor shall not, by reason of this or any other assignment of such
sublease to Lessor nor by; reason of the collection of the rents from a
sublessee, be deemed liable to the sublessee for any failure of Lessee to
perform and comply with any of Lessee's obligations to such sublessee under such
sublease. Lessee hereby irrevocably authorizes and directs any such sublessee,
upon receipt of a written notice from Lessor stating that a default exists in
the performance of Lessee's obligations under this Lease, to pay to Lessor the
rent due and to become due under the sublease. Lessee agrees that such sublessee
shall have the right to rely upon any such statement and request from Lessor,
and that such sublessee shall pay such rents to Lessor without any obligation or
right to inquire as to whether such default exists and not withstanding any
notice from or claim from Lessee to the contrary, Lessee shall have no right or
claim against said sublessee or Lessor for any such rents so paid by said
sublssee to Lessor.

            (b) No sublease entered into by Lessee shall be effective unless and
until it has been approved in writing by Lessor, in entering into any sublease,
Lessee shall use only such form of sublease as is satisfactory to Lessor, and
once approved by Lessor, such sublease shall not be changed or modified without
Lessor's prior written consent. Any sublessee shall, by reason of entering into
a sublease under this Lease, be deemed, for the benefit of Lessor, to have
assumed and agreed to conform and comply with each and every obligation herein
to be performed by Lessee other than such obligations as are contrary to or
inconsistent with provisions contained in a sublease to which Lessor has
expressly consented in writing.

            (c) In the event Lessee shall default in the performance of its
obligations under this Lease, Lessor, at its option and without any obligation
to do so, may require any sublessee to attorn to Lessor, in which event Lessor
shall undertake the obligations of Lessee under such sublease; from the time of
the exercise at said option to the termination of such sublease; provided,
however, Lessor shall not be liable for any prepaid rents or security deposit
paid by such sublessee to Lessee or for an other prior defaults of Lessee under
such sublease.

            (d) No sublessee shall further assign or sublet all or any part of
the Premises without Lessor's prior written consent.

            (e) With respect to any subletting to which Lessor has consented,
Lessor agrees to deliver a copy of any notice default by Lessee to the
sublessee. Such sublessee shall have the right to cure of a default of Lessee
within three (3) days after service of said notice of default upon such
sublessee, and the sublessee shall have a right of reimbursement and offset from
and against Lessee for any such default cured by the sublessee.

      12.5 Lessor's Expenses. In the event Lessee shall assign or sublet the
Premises or request the consent of Lessor to any assignment or subletting or if
Lessee shall request the consent of Lessor for any act Lessee proposes to do
then Lessee shall pay Lessor reasonable costs and expenses incurred in
connection therewith, including attorney's architects', engineers' or other
consultants' fees.

      12.6 Conditions to Consent. Lessor reserves the right to condition any
approval to assign or sublet upon Lessor's determination that (a) the proposed
assignee or sublessee shall conduct a business on the Premises of a quality
substantially equal to that of Leases and consistent with the general character
of the other occupants of the Office Building Project and not in violation of
any exclusives or rights then held by other tenants, and (b) the proposed
assignee or sublessee be at least as financially responsible as Lessee was
expected to be at the time of the execution of this Lease or of such assignment
or subletting, whichever is greater.

13. Default; Remedies.

      13.1 Default. The occurrence of any one or more of the following events
shall constitute a material default of this Lease by Lessee:

            (a) The vacation or abandonment of the Premises by Lessee. Vacation
of the Premises shall include the failure to occupy the Premises for a
continuous period of sixty (60) days or more, whether or not the rent is paid.

            (b) The breach by Lessee of any of the covenants, conditions or
provisions of paragraphs 7.3(a), (b) or (d) (alterations), 12.1 (assignment or
subletting), 13.1(a) (vacation or abandonment), 13.1(e) (insolvency), 13.1(f)
(false statement), 16(a) (estoppels certificate) 30(b) (subordination), 33
(auctions), or 41.1 (easements), all of which are hereby deemed to be material,
non-curable defaults without the necessity of any notice by Lessor to Lessee
thereof.

            (c) The failure by Lessee to make any payment of rent or any ocher
payment required to be made by Lessee hereunder as, and when due, where such
failure shall continue for a period of three (3) days after written notice
thereof from Lessor to Lessee. In the event that Lessor serves Lessee with a
Notice to Pay Rent or Quit pursuant to applicable Unlawful Detainer statutes
such Notice to Pay Rent or Quit shall also constitute the notice required by
this subparagraph.

            (d) The failure by Lessee to observe or perform any of the
covenants, conditions or provisions of this Lease to be observed or performed by
Lessee other than those referenced in subparagraphs (b) and (c), above, where
such failure shall continue for period of thirty (30) days after written notice
thereof from Lessor to Lessee; provided, however, that if the nature of Lessee's
noncompliance is such that more than thirty (30) days are reasonably required
for its cure, then Lessee shall not be deemed to be in default if Lessee
commenced such cure within said thirty (30) day period and thereafter diligently
pursues such cure to completion. To the extent permitted by law, such thirty
(30) day notice shall Constitute the sole and exclusive notice required to be
given to Lessee under applicable Unlawful Detainer statutes.

            (e) (i) The making by Lessee of any general arrangement or general
assignment for the benefit of creditors; (ii) Lessee becoming a "debtor" as
defined in 11 U.S.C. s.s.101 or any successor statute thereto unless in the case
of a petition filed against Lessee, the same is dismissed within sixty (60) days
(iii) the appointment of a trustee or receiver to take possession of
substantially all of Lessee's assets located at the Premises or of Lessee's
interest in this Lease, where possession is not restored to Lessee within thirty
(30) days; or (iv) the attachment, execution or other judicial seizure of
substantially all of Lessee's assets located at the Premises or of Lessee's
interest in this Lease, where such seizure is not discharged within thirty (30)
days, in the event that any provision of this paragraph 13.1(e) is contrary to
any applicable law, such provision shall be of no force or effect.

                                                          Initials:_____________
                                                                   _____________

                               FULL SERVICE--NET

(C) 1984 American Industrial Real Estate Association

                               PAGE 6 0f 10 PAGES
<PAGE>

            (f) The discovery by Lessor that any financial statement given to
Lessor by Lessee, or its successor in interest or by any guarantor of Lessee's
obligation hereunder, was materially false.

      13.2 Remedies. In the event of any material default or breach of this
Lease by Lessee, Lessor may at any time thereafter, with or without notice or
demand and without limiting Lessor in the exercise of any right or remedy which
Lessor may have by reason of such default:

            (a) Terminate Lessee's right to possession of the Premises by any
lawful means, in which case this Lease and the term hereof shall terminate and
Lessee shall immediately surrender possession of the Premises to Lessor. In such
event Lessor shall be entitled to recover from Lessee all damages incurred by
Lessor by reason of Lessee's default including, but not limited to, the cost of
recovering possession of the Premises; expenses of reletting, including
necessary renovation and alteration of the Premises, reasonable attorneys' fees,
and any real estate commission actually paid: the worth at the time of award by
the court having jurisdiction thereof of the amount by which the unpaid rent for
the balance of the term after the time of such award exceeds the amount of such
rental loss for the same period that Lessee proves could be reasonably avoided;
that portion of the leasing commission paid by Lessor pursuant to paragraph 15
applicable to the unexpired term of this Lease.

            (b) Maintain Lessees right to possession in which case this Lease
shall continue in effect whether or not Lessee shall have vacated or abandoned
the Premises. In such event Lessor shall be entitled to enforce all of Lessor's
rights and remedies under this Lease, including the right to recover the rent as
it becomes due hereunder.

            (c) Pursue any other remedy now or hereafter available to Lessor
under the laws or judicial decisions of the stale wherein the Premises are
located. Unpaid Installments of rent and other unpaid monetary obligations of
Lessee under the terms of this Lease shall bear interest from the date due at
the maximum rate then allowable by law.

      13.3 Default by Leasor. Lessor shall not be in default unless Lessor fails
to perform obligations required of Leasor within a reasonable time, but in no
event later than thirty (30) days after written notice by Lessee to Lessor and
to the holder of any first mortgage or deed of trust covering the Premises whose
name and address shall have theretofore been furnished to Lessee in writing,
specifying wherein Lessor has failed to perform such obligation; provided,
however, that if the nature of lessor's obligation is such that more than thirty
(30) days are required for performance then Lessor shall not be in default if
Lessor commences performance within such 30-day period and thereafter diligently
pursues the same to completion.

      13.4 Late Charges. Lessee hereby acknowledges that late payment by Lessee
to Lessor of Base Rent, Lessee's Share of Operating Expenses or other sums due
hereunder will cause Lessor to incur costs not contemplated by this Lease, the
exact amount of which will be extremely difficult to ascertain. Such costs
include, but are not limited to, processing and accounting charges, and late
charges which may be imposed on Lessor by the terms of any mortgage or trust
deed covering the Office Building Project. Accordingly, if any installment of
Base Rent, Operating Expenses, or any other sum due from Lessee shall not be
received by Lessor or Lessor's designee within ten (10) days after such amounts
shall be due, then, without any requirement for notice to Lessee, Lessee shall
pay to Lessor a late charge equal to 6% of such overdue amount. The parties
hereby agree that such late charge represents a fair and reasonable estimate of
the costs Lessor will incur by reason of late payment by Lessee. Acceptance of
such late charge by Lessor shall in no event constitute a waiver of Lessee's
default with respect to such overdue amount, nor prevent Lessor from exercising
any of the other rights and remedies granted hereunder.

14. Condemnation. If the Premises or any portion thereof or the Office Building
Project are taken under the power of eminent domain, or sold under the threat of
the exercise of said power (all of which are herein called "condemnation"), this
Lease shall terminate as to the part so taken as of the date the condemning
authority takes title or possession, whichever first occurs; provided that if so
much of the Premises or the Office Building Project are taken by such
condemnation as would substantially and adversely affect the operation and
profitability of Lessee's business conducted from the Premises, Lessee shall
have the option, to be exercised only in writing within thirty (30) days after
Lessor shall have given Lessee written notice of such taking (or in the absence
or such notice, within thirty (30) days after the condemning authority shall
have taken possession), to terminate this Lease as of the date the condemning
authority takes such possession. If Lessee does not terminate this Lease in
accordance with the foregoing, this Lease shall remain in full force and effect
as to the portion of the Premises remaining, except that the rent and Lessee's
Share of Operating Expenses shall be reduced in the proportion that the floor
area of the Premises taken bears to the total floor area of the Premises. Common
Areas taken shall be excluded from the Common Areas usable by Lessee and no
reduction of rent shall occur with respect thereto or by reason thereof. Lessor
shall have the option in its sole discretion to terminate this Lease as of the
taking of possession by the condemning authority by giving written notice to
Lessee of such election within thirty (30) days after receipt of notice of a
taking by condemnation of any part of the Premises or the Office Building
Project. Any award for the taking of all or any part or the Premises of the
Office Building Project under the power of eminent domain or any payment made
under threat of the exercise of such power shall be the property of Lessor,
whether such award shall be made as compensation for diminution in value of the
leasehold or for the taking of the fee or as severance damages; provided,
however, that Lessee shall be entitled to any separate award for loss of or
damage to Lessee's trade fixtures, removable personal property and unamortized
tenant improvements that have been paid for by Lessee. For that purpose the cost
of such improvements shall be amortized over the original term of this Lease
excluding any options. In the event that this Lease is not terminated by reason
of such condemnation, Lessor shall to the extent of severance damages received
by Lessor in connection with such condemnation, repair any damage to the
Premises caused by such condemnation except to the extent that Lessee has been
reimbursed therefor by the condemning authority. Lessee shall pay any amount in
excess of such severance damages required to complete such repair.

15. Broker's Fee.

      (a) The brokers involved in this transaction are ____________________ as
"listing broker" and ____________________ as "cooperating broker, licensed real
estate broker(s)". A "cooperating broker" is defined as any broker other than
the listing broker entitled to a share of any commission arising under this
Lease. Upon execution of this Lease by both parties, Lessor shall pay to said
brokers jointly, or in such separate shares as they may mutually designate in
writing, a fee as set forth in a separate agreement between Lessor and said
broker(s), or in the event there is no separate agreement between Lessor and
said broker(s), the sum of $__________, for brokerage services rendered by said
broker(s) to Lessor in this transaction.

      (b) Lessor further agrees that (i) if Lessee exercises any Option, as
defined in paragraph 39.1 of this Lease, which granted to Lessee under this
Lease, or any subsequently granted option which is substantially similar to an
Option granted to Lessee under this Lessee, or (ii) if Lessee acquires any
rights to the Premises or other premises described in this Lease which are
substantially similar to what Lessee would have acquired had an Option herein
granted to Lessee been exercised, or (iii) it Lessee remains in possession of
the Premises after the expiration of the term of this Lease after having failed
to exercise an Option, or (iv) if said broker(s) are the procuring cause of any
other lease or sale entered into between the parties pertaining to the Premises
and/or any adjacent property in which Lessor has an interest, or (v) if the Base
Rent is increased, whether by agreement or operation of an escalation clause
contained herein, then as to any of said transactions or rent increases, Lessor
shall pay said broker(s) a fee in accordance with the schedule of said broker(s)
in effect at the time of execution of this Lease. Said fee shall be paid at the
time such increased rental is determined.

      (c) Lessor agrees to pay said fee only on behalf of Lessor but also on
behalf of any person, corporation, association, or other entity having an
ownership interest in said real property or any part thereof, when such fee is
due hereunder. Any transferee of Lessor's interest in this Lease, whether such
transfer is by agreement or by operation of law, shall be deemed to have assumed
Lessor's obligation under this paragraph 15. Each listing and cooperating broker
shall be a third party beneficiary of the provisions of this paragraph 15 to the
extent of their interest in any commission arising under this Lease and may
enforce that right directly against Lessor; provided, however, that all brokers
having a right to any part of such total commission shall be a necessary party
to any suit with respect thereto.

      (d) Lessee and Lessor each represent and warrant to the other that neither
has had any dealings with any person, firm, broker or finder (other than the
person(s), if any, whose names are set forth in paragraph 15(a), above) in
connection with the negotiation of this Lease and/or the consummation of the
transaction contemplated hereby, and no other broker or other person, firm or
entity is entitled to any such commission or finder's fee in connection with
said transaction and Lessee and Lessor do each hereby indemnify and hold the
other harmless from and against any costs, expenses, attorneys' fees or
liability for compensation or charges which may be claimed by any such unnamed
broker, finder or other similar party by reason of any dealings or actions of
the indemnifying party.

16. Estoppel Certificate.

      (a) Each party (as "responding party") shall at any time upon not less
than ten (10) days' prior written notice from the other party ("requesting
party") execute, acknowledge and deliver to the requesting party a statement in
writing (i) certifying that this Lease is unmodified and in full force and
effect (or, if modified, stating the nature of such modification and certifying
that this Lease, as so modified, is in full force and effect) and the date to
which the rent and other charges are paid in advance, if any, and (ii)
acknowledging that there are not, to the reporting party's knowledge, any
uncured defaults on the part of the requesting party, or specifying such
defaults if any are claimed. Any such statement may be conclusively relied upon
by any prospective purchaser or encumbrancer of the Office Building Project or
of the business of Lessee.

      (b) At the requesting party's option, the failure to deliver such
statement within such time shall be a material default of this Lease by party
who is to respond, without any further notice to such party, or it shall be
conclusive upon such party that (i) this Lease is in full force and effect,
without modification except as may be represented by the requesting party, (ii)
there are no uncured defaults in the requesting party's performance, and (iii)
if Lessor is the requesting party, not more than one month's rent has been paid
in advance.

      (c) If Lessor desires to finance, refinance, or sell the Office Building
Project, or any part thereof, Lessee hereby agrees to deliver to any lender or
purchaser designated by Lessor such financial statements of Lessee as may be
reasonably required by such lender or purchaser. Such statements shall include
the past three (3) years' financial statements of Lessee. All such financial
statements shall be received by Lessor and such lender or purchaser in
confidence and shall be used only for the purposes herein set forth.

                                                        Initials: ______________
                                                                  ______________

                               FULL SERVICE--NET

(C) 1984 American Industrial Real Estate Associate

                               PAGE 7 OF 10 PAGES
<PAGE>

17. Lessor's Liability. The term "Lessor" as used herein shall mean only the
owner or owners, at the time in question of the fee title or a lessee's interest
in a ground lease of the Office Building Project, and except as expressly
provided in paragraph 15, in the event of any transfer of such title or
interest, Lessor herein named (and in case of any subsequent transfers then the
grantor) shall be relieved from and after the date of such transfer of all
liability as respects Lessor's obligations thereafter to be performed, provided
that any funds in the hands of Lessor or the then grantor at the time of such
transfer, in which Lessee has an interest, shall be delivered to the grantee.
The obligations contained in this Lease to be performed by Lessor shall, subject
as aforesaid, be binding on Lessor's successors and assigns only during their
respective periods of ownership.

18. Severability. The invalidity of any provision of this Lease as determined by
a court of competent jurisdiction shall in no way affect the validity of any
other provision hereof.

19. Interest on Past-due Obligations. Except as expressly herein provided, any
amount due to Lessor not paid when due shall bear interest at the maximum rate
then allowable by law or judgments from the date due. Payment of such interest
shall not excuse or cure any default by Lessee under this Lease; provided,
however, that interest shall not be payable on late charges incurred by Lessee
nor on any amounts upon which late charges are paid by Lessee.

20. Time of Essence. Time is of the essence with respect to the obligations to
be performed under this Lease.

21. Additional Rent. All monetary obligations of Lessee to Lessor under the
terms of this Lease, including but not limited to Lessee's Share of Operating
Expense and any other expenses payable by Lessee hereunder shall be deemed to be
rent.

22. Incorporation of Prior Agreements; Amendments. This Lease contains all
agreements of the parties with respect to any matter mentioned herein. No prior
or contemporaneous agreement or understanding pertaining to any such matter
shall be effective. This Lease may be modified in writing only, signed by the
parties in interest at the time of the modification. Except as otherwise stated
in this Lease, Lessee hereby acknowledges that neither the real estate broker
listed in paragraph 15 hereof nor any cooperating broker on this transaction nor
the Lessor or any employee or agents of any of said persons has made any oral or
written warranties or representations to Lessee relative to the condition or use
by Lessee of the Premises or of said persons has made any oral or written
warranties or representations to Lessee relative to the condition or use by
Lessee of the Premises or the Office Buildings Project and Lessee acknowledges
that Lessee assumes all responsibility regarding the Occupational Safety Health
Act, the legal use and adaptability of the Premises and the compliance thereof
with all applicable laws and regulations in effect during the term of this
Lease.

23. Notices. Any notice required or permitted to be given hereunder shall be in
writing and may be given by personal delivery or by certified or registered
mail, and shall be deemed sufficiently given if delivered or addressed to Lessee
or to Lessor at the address noted below or adjacent to the signature of the
respective parties, as the case may be. Mailed notices shall be deemed given
upon actual receipt at the address required, or forty-eight hours following
deposit in the mail, postage prepaid, whichever first occurs. Either party may
by notice to the other specify a different address for notice purposes except
that upon Lessee's taking possession of the Premises, the Premises shall
constitute Lessee's address for notice purposes. A copy of all notices required
or permitted to be given to Lessor hereunder shall be concurrently transmitted
to such party or parties at such addresses as Lessor may from time to time
hereafter designate by notice to Lessee.

24. Waivers. No waiver by Lessor of any provision hereof shall be deemed a
waiver of any other provision hereof or of any subsequent breach by Lessee of
the same or any other provision. Lessor's consent to, or approval of, any act
shall not be deemed to render unnecessary the obtaining of Lessor's consent to
or approval of any subsequent act by Lessee. The acceptance of rent hereunder by
Lessor shall not be a waiver of any preceding breach by Lessee of any provision
hereof, other than the failure of Lessee to pay the particular rent so accepted,
regardless of Lessor's knowledge of such preceding breach at the time of
acceptance of such rent.

25. Recording. Either Lessor or Lessee shall, upon request of the other,
execute, acknowledge and deliver to the other a "short form" memorandum of this
Lease for recording purposes.

26. Holding Over. If Lessee, with Lessor's consent, remains in possession of the
Premises or any party thereof after the expiration of the term hereof, such
occupancy shall be a tenancy from month to month upon all the provisions of this
Lease pertaining to the obligations of Lessee, except that the rent payable
shall be two hundred percent (200%) of the rent payable immediately preceding
the termination date of this Lease, and all Options, if any, granted under the
terms of this Lease shall be deemed terminated and be of no further effect
during said month to month tenancy.

27. Cumulative Remedies. No remedy or election hereunder shall be deemed
exclusive but shall, wherever possible, be [ILLEGIBLE] with all other remedies
at law or in equity.

28. Covenants and Conditions. Each provision of this Lease performable by Lessee
shall be deemed both a covenant and a condition.

29. Binding Effect; Choice of Law. Subject to any provisions hereof restricting
assignment or subletting by Lessee and subject to the provisions of paragraph
17, this Lease shall bind the parties, their personal representatives,
successors and assigns. This Lease shall be governed by the laws of the State
where the Office Building Project is located and any litigation concerning this
Lease between the parties hereto shall be initiated in the county in which the
Office Building Project is located.

30. Subordination.

      (a) This Lease, and any Option or right of first refusal granted hereby at
Lessor's option, shall be subordinate to any ground lease, mortgage, deed of
trust, or any other hypothecation or security now or hereafter placed upon the
Office Building Project and to any and all advances made on the security thereof
and to all renewals, modifications, consolidations, replacements and extensions
thereof. Notwithstanding such subordination, Lessee's right to quiet possession
of the Premises shall not be disturbed if Lessee is not in default and so long
as Lessee shall pay the rent and observe and perform all of the provisions of
this Lease, unless this Lease is otherwise terminated pursuant to its terms. If
any mortgagee, trustee or ground lessor shall elect to have this Lease and any
Options granted hereby prior to the lien of its mortgage, deed of trust or
ground lease, and shall give written notice thereof to Lessee, this Lease and
such Options shall be deemed prior to such mortgage, deed of trust or ground
lease, whether this Lease or such Options are dated prior or subsequent to the
date of said mortgage, deed of trust or ground lease or the date of recording
thereof.

      (b) Lessee agrees to execute any documents required to effectuate an
attornment, a subordination, or to make this Lease or any Option granted herein
prior to the lien of any mortgage, deed of trust or ground lease, as the case
may be. Lessee's failure to execute such documents within ten (10) days after
written demand shall constitute a material default by Lessee hereunder without
further notice to Lessee or, at Lessor's option, Lessor shall execute such
documents on behalf of Lessee as Lessee's attorney-in-fact. Lessee does hereby
make, constitute and irrevocably appoint Lessor as Lessee's attorney-in-fact and
in Lessee's name, place and stead, to execute such documents in accordance with
this paragraph 30(b).

31. Attorneys' Fees.

      31.1 If either party or the broker(s) named herein bring an action to
enforce the terms hereof or declare rights hereunder, the prevailing party in
any such action, trial or appeal thereon, shall be entitled to his reasonable
attorneys' fees to be paid by the losing party as fixed by the court in the same
or a separate suit, and whether or not such action is pursued to decision or
judgment. The provisions of this paragraph shall inure to the benefit of the
broker name herein who seeks to enforce a right hereunder.

      31.2 The attorney's fee awarded shall not be computed in accordance with
any court fee schedule, but shall be such as to fully reimburse all attorney's
fees reasonably incurred in good faith.

      31.3. Lessor shall be entitled to reasonable attorney's fees and all other
costs and expenses incurred in the preparation and service of notices of default
and consultations in connection therewith, whether or not a legal action is
subsequently commenced in connection with such default.

32. Lessor's Access.

      32.1 Lessor and Lessor's agents shall have the right to enter the Premises
at reasonable times for the purpose of inspecting the same, performing any
services required of Lessor, showing the same to prospective purchasers,
lenders, or lessees, taking such safety measures, erecting such scaffolding or
other necessary structures, making such alterations, repairs, improvements or
additions to the Premises or to the Office Building Project as Lessor may
reasonably deem necessary or desirable and the erecting, using and maintaining
of utilities, services, pipes and conduits through the Premises and/or other
premises as long as there is no material adverse effect to Lessee's use of the
Premises. Lessor may at any time place on or about the Premises or the Building
any ordinary "For Sale" signs and Lessor may at any time during the last 120
days of the term hereof place on or about the Premises any ordinary "For Lease"
signs.

      32.2 All activities of Lessor pursuant to this paragraph shall be without
abatement of rent, nor shall Lessor have any liability to Lessee for the same.

      32.3. Lessor shall have the right to retain keys to the Premises and to
unlock all doors in or upon the Premises other than to files, vaults and safes,
and in the case of emergency to enter the Premises by any reasonably appropriate
means, and any such entry shall not be deemed a forceable or unlawful entry or
detainer of the Premises or an eviction. Lessee waives any charges for damages
or injuries of interference with Lessee's property or business in connection
therewith.

33. Auctions. Lessee shall not conduct, nor permit to be conducted, either
voluntarily or involuntarily, and auction upon the Premises or the Common Areas
without first having obtained Lessor's prior written consent. Notwithstanding
anything to the contrary in this Lease, Lessor shall not be obligated to
exercise any standard of reasonableness in determining whether to grant such
consent. The holding of any [ILLEGIBLE] on the Premises or Common Areas in
violation of this paragraph shall constitute a material default of this Lease.

34 Signs. Lessee shall not place any sign upon the Premises or the Office
Building Project without Lessor's prior written consent. Under no circumstances
shall Lessee place a sign on any roof of the Office Building Project.

                                                        Initials: ______________
                                                                  ______________

                               FULL SERVICE--NET

(C) 1984 American Industrial Real Estate Association

                               PAGE 8 OF 10 PAGES
<PAGE>

35. Merger. The voluntary or other surrender of this Lease by Lessee, or a
mutual cancellation thereof, or a termination by Lessor, shall not work a
merger and shall, at the option of Lessor, terminate all or any existing
subtenancies or may, at the option of Lessor, operate as in assignment to Lessor
of any or all of such subtenancies.

36. Consents. Except for paragraphs 33 (auctions) and 34 (signs) hereof,
wherever in this Lease the consent of one party is required to an act of the
other party such consent shall not be unreasonably withheld or delayed.

37. Guarantor. In the event that there is a guarantor of this Lease, said
guarantor shall have the same obligations as Lease under this Lease.

38. Quiet Possession. Upon Lessee paying the rent or the Premises and observing
and performing all of the covenants conditions and provisions on Lessee's part
to be observed and performed hereunder, Lessee shall have quiet possession of
the Premises for the entire term hereof subject to all of the provisions of this
Lease. The individuals executing this Lease on behalf of Lessor represent and
warrant to Lessee that they are fully authorized and legally capable of
executing this Lease on behalf of Lessor and that such execution is binding upon
all parties holding an ownership interest in the Office Building Project.

39. Options.

      39.1 Definition. As used in this paragraph the word "Option" has the
following meaning: (1) the right or option to extend the term of this Lease or
to renew this Lease or to extend or renew any lease that Lessee has on other
property of Lessor: (2) the option or right of first refusal to lease the
Premises or the right of first offer to lease the Premises or the right of first
refusal to lease other space within the Office Building Project or other
property of Lessor or the right of first offer to lease other space within the
Office Building Project or other property of Lessor; (3) the right or option to
purchase the Premises or the Office Building Project, or the right of first
refusal to purchase the Premises or the Office Building Project or the right of
first offer to purchase the Premises or the Office Building Project, or the
right or option to purchase other property of Lessor, or the right of first
refusal to purchase other property of Lessor or the right of first offer to
purchase other property of Lessor.

      39.2 Options Personal. Each Option granted to Lessee in this Lease is
personal to the original Lessee and may be exercised only by the original
Lessee while occupying the Premises who does so without the intent of thereafter
assigning this Lease or subletting the Premises or any portion thereof, and may
not be exercised or be assigned, voluntarily or involuntarily, by or to any
person or entity other than Lessee: provided, however, that an Option may be
exercised by or assigned to any Lessee Affiliate as defined in paragraph 12.2 of
this Lease. The Options, if any, herein granted to Lessee are not assignable
separate and apart from this Lease, nor may any Option be separated from this
Lease in any manner, either by reservation or otherwise.

      38.3 Multiple Options. In the event that Lessee has any multiple options
to extend or renew this Lease a later option cannot be exercised unless the
prior option to extend or renew this Lease has been so exercised.

      39.4 Effect of Default on Options.

            (a) Lessee shall have no right to exercise an Option,
notwithstanding any provision in the grant of Option to the contrary, (i) during
the time commencing from the date Lessor gives to Lessee a notice of default
pursuant to paragraph 13.1(c) or 13.1(d) and continuing until the noncompliance
alleged in said notice of default is cured, or (ii) during the period of time
commencing on the day after a monetary obligation to Lessor is due from Lessee
and unpaid (without any necessity for notice thereof to Lessee) and continuing
until the obligation is paid, or (iii) in the event that Lessor has given to
Lessee three or more notices of default under paragraph 13.1(c), or paragraph
13.1(d), whether or not the defaults are cured, during the 12 month period of
time immediately prior to the time that Lessee attempts to exercise the subject
Option, (iv) if Lessee has committed any non-curable breach, including without
limitation those described in paragraph 13.1(b), or is otherwise in default
of any of the terms, covenants or conditions of this Lease.

            (b) The period of time within which an Option may be exercised shall
not be extended Or enlarged by reason of Lease's inability to exercise an Option
because of the provisions of paragraph 39.4(a).

            (c) All rights of Lessee under the provisions of an Option shall
terminate and be of no further force or effect, notwithstanding Lessee's due and
timely exercise of the Option, if, alter such exercise and during the term of
this Lease, (i) Lessee fails to pay to Lessor a monetary obligation of Lessee
for a period of thirty (30) days after such obligation becomes due (without any
necessity of Lessor to give notice thereof to Lessee), or (ii) Lessee fails to
commence to cure a default specified in paragraph 13.1(d) within thirty (30)
days after the date that Lessor gives notice to Lessee of such default and/or
Lessee fails thereafter to diligently prosecute said cure to completion, (iii)
Lessor gives to Lessee three or more notices of default under paragraph 13.1(c),
or paragraph 13.1(d), whether or not the defaults are cured, or (iv) if Lessee
has committee any non-curable breach, including without limitation those
described in paragraph 13.1(b), or is otherwise in default of any of the terms,
covenants and conditions of this Lease.

40. Security Measures--Lessor's Reservations.

      40.1 Lessee hereby acknowledges that Lessor shall have no obligation
whatsoever to provide guard service or other security measures for the benefit
of the Premises or the Office Building Project. Lessee assumes all
responsibility for the protection of Lessee, its agents, and invitees and the
property of Lessee and of Lessee's agents and invitees from acts of third
parties. Nothing herein contained shall prevent Lessor, at Lessor's sole option,
from providing security protection for the Office Building Project or any part
thereof, in which event the cost thereof shall be included within the definition
of Operating Expenses, as set forth in paragraph 4.2(b).

      40.2 Lessor shall have the following rights:

            (a) To change the name, address or title of the Office Building
Project or building in which the Premises are located upon not less than 90 days
prior written notice;

            (b) To, at Lessee's expense, provide and Install Building standard
graphics on the door of the Premises and such portions of the Common Areas as
Lessor shall reasonably deem appropriate;

            (c) To permit any lessee the exclusive right to conduct any business
as long as such exclusive does not conflict, with any rights expressly given
herein;

            (d) To place such signs, notices or displays as Lessor reasonably
deems necessary or advisable upon the roof, exterior of the buildings or the
Office Building Project or on pole signs in the Common Areas;

      40.3 Lessee shall not:

            (a) Use a representation (photographic or otherwise) of the
Building or the Office Building Project or their name(s) in connection with
Lessee's business;

            (b) Suffer or permit anyone, except in emergency, to go upon the
roof of the Building.

41. Easements.

      41.1 Lessor reserves to itself the right, from time to time, to grant such
easements, rights and dedications that Lessor deems necessary or desirable, and
to cause the recordation of Parcel Maps and restrictions, so long as such
easements, rights, dedications, Maps and restrictions do not unreasonably
interfere with the use of the Premises by Lessee. Lessee shall sign any of the
aforementioned documents upon request of Lessor and failure to do so shall
constitute a material default of this Lease by Lessee without the need for
further notice to Lessee.

      41.2The obstruction of Lessee's view, air, or light by any structure
erected in the vicinity of the Building, whether by Lessor or third parties,
shall in no way affect this Lease or impose any liability upon Lessor.

42. Performance Under Protest. If at any time a dispute shall arise as to any
amount or sum of money to be paid by one party to the other under the provisions
hereof, the party against whom the obligation to pay the money is asserted shall
have the right to make payment "under protest" and such payment shall not be
regarded as a voluntary payment, and there shall survive the right on the part
of said party to institute suit for recovery of such sum. If it shall be
adjudged that there was no legal obligation on the part of said party to pay
such sum or any part thereof, said party shall be entitled to recover such sum
or so much thereof as it was not legally required to pay under the provisions of
this Lease.

43. Authority. If Lessee is a corporation, trust, or general or limited
partnership, Lessee, and each individual executing this Lease on behalf of such
entity, represent and warrant that such individual is duly authorized to execute
and deliver this Lease on behalf of said entity Lessee is a corporation, trust
or partnership, Lessee shall, within thirty (30) days after execution of this
Lease, deliver to Lessor evidence of such authority satisfactory to Lessor.

44. Conflict. Any conflict between the printed provisions, Exhibits or Addenda
of this Lease and the typewritten or handwritten provisions, if any, shall be
controlled by the typewritten or handwritten provisions.

45. No Offer. Preparation of this Lease by Lessor or Lessor's agent and
submission of same to Lessee shall not be deemed an offer to Lessee to lease.
This Lease shall become binding upon Lessor and Lessee only when fully executed
by both parties.

46. Lender Modification. Lessee agrees to make such reasonable modifications to
this Lease as may be reasonably required by an Institutional lender in
connection with the obtaining of normal financing or refinancing of the Office
Building Project.

                                                          Initials:_____________
                                                                   _____________

                               FULL SERVICE--NET

(C) 1984 American Industrial Real Estate Association

                               PAGE 9 OF 10 PAGES
<PAGE>

47. Multiple Parties. If more than one person or entity is named as either
Lessor or Lessee herein, except as otherwise expressly provided herein, the
obligations of the Lessor or Lessee herein shall be the joint and several
responsibility of all persons or entities named as such Lessor or Lessee,
respectively.

48. Work Letter. This Lease is supplemented by that certain Work Letter of even
date executed by Lessor and Lessee attached hereto as Exhibit C and incorporated
herein by this reference.

49. Attachments. Attached hereto are the following documents which constitute a
part of this Lease:

49a   1)    Tenant to pay on the first day of each month in addition to the Base
            Rent the estimated monthly CAM charges for the space. Said CAM
            charges are estimated at thirty cents per sq. ft. of leased space.

49b   1)    Tenant shall be given two Options to Extend of six months each upon
            the same terms of the original Lease.

49c   1)    Tenant shall make all rent payments to Jordan Property Management at
            1103 Holly Dr. Tracy CA 95376 and any requests for maintenance are
            to be made to Jordan Property Management at 835-1315.

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

      IF THIS LEASE HAS BEEN FILLED IN IT HAS BEEN PREPARED FOR SUBMISSION TO
      YOUR ATTORNEY FOR HIS APPROVAL. NO REPRESENTATION OR RECOMMENDATION IS
      MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION OR BY THE REAL
      ESTATE BROKER OR ITS AGENTS OR EMPLOYEES AS TO THE LEGAL SUFFICIENCY,
      LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION
      RELATING THERETO: THE PARTIES SHALL RELY SOLELY UPON THE ADVICE OF THEIR
      OWN LEGAL COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE.

             LESSOR                                  LESSEE

/s/ Jordan Property Management                  /s/ [ILLEGIBLE]
---------------------------------------         --------------------------------

By /s/ [ILLEGIBLE]                              By
   ------------------------------------            -----------------------------

        Its Broker                                      Its
            ---------------------------                     --------------------

By                                              By
   ------------------------------------            -----------------------------

        Its                                             Its
            ---------------------------                     --------------------

Executed at                                     Executed at
            ---------------------------                     --------------------

on                                              on
   ------------------------------------            -----------------------------

Address                                         Address
        -------------------------------                 ------------------------

                               FULL SERVICE--NET

(C) 1984 American Industrial Real Estate Association

                               PAGE 10 OF 10 PAGES

NOTE: These forms are often modified to meet changing requirements of law and
      needs of the industry. Always write or call to make sure you are utilizing
      the most current form: AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION, 700 S.
      Flower Street, Suite 600, Los Angeles, CA 90017. (213) 687-8777.
<PAGE>

                             STANDARD OFFICE LEASE

                                   FLOOR PLAN

                                   [GRAPHIC]

                                    EXHIBIT A

                                                          Initials______________
                                                                  ______________

                               FULL SERVICE--NET

(C) 1984 American Industrial Real Estate Association

                                PAGE 1 OF 1 PAGES
<PAGE>

                            RULES AND REGULATIONS FOR
                              STANDARD OFFICE LEASE

                                   [GRAPHIC]

Dated: December 10, 1997

By and Between Hooman and Setareh Madyoon (Lessor) and Pacific State Bank
(Lessee)

                                  GENERAL RULES

      1. Lessee shall not suffer or permit the obstruction of any Common Areas,
including driveways, walkways and stairways.

      2. Lessor reserves the right to refuse access to any persons Lessor in
good faith judges to be a threat to the safety, reputation, or property of the
Office Building Project and its occupants.

      3. Lessee shall not make or permit any noise or odors that annoy or
interfere with other lessees or persons having business within the Office
Building Project.

      4. Lessee shall not keep animals or birds within the Office Building
Project, and shall not bring bicycles, motorcycles or other vehicles into areas
not designated as authorized for same.

      5. Lessee shall not make, suffer or permit litter except in appropriate
receptacles for that purpose.

      6. Lessee shall not alter any lock or install new or additional locks or
bolts.

      7. Lessee shall be responsible for the inappropriate use of any toilet
rooms, plumbing or other utilities. No foreign substances of any kind are to be
inserted therein.

      8. Lessee shall not deface the walls, partitions or other surfaces of the
Premises or Office Building Project.

      9. Lessee shall not suffer or permit any thing in or around the Premises
or Building that causes excessive vibration or floor loading in any part of the
Office Building Project.

      10. Furniture, significant freight and equipment shall be moved into or
out of the building only with the Lessor's knowledge and consent, and subject to
such reasonable limitations, techniques and timing, as may be designated by
Lessor. Lessee shall be responsible for any damage to the Office Building
Project arising from any such activity.

      11. Lessee shall not employ any service or contractor for service or work
to be performed in the Building, except as approved by Lessor.

      12. Lessor reserves the right to close and lock the Building on Saturdays,
Sundays and legal holidays, and on other days between the hours of _____ P.M.
and _____ A.M. of the following day. If Lessee uses the Premises during such
periods, Lessee shall be responsible for securely locking any doors it may have
opened for entry.

      13. Lessee shall return all keys at the termination of its tenancy and
shall be responsible for the cost of replacing any keys that are lost.

      14. No window coverings, shades or awnings shall be installed or used by
Lessee.

      15. No Lessee, employee or invitee shall go upon the roof of the Building.

      16. Lessee shall not suffer or permit smoking or carrying of lighted
cigars or cigarettes in areas reasonably designated by Lessor or by applicable
governmental agencies as non-smoking areas.

      17. Lessee shall not use any method of heating or air conditioning other
than as provided by Lessor.

      18. Lessee shall not install, maintain or operate any vending machines
upon the Premises without Lessor's written consent.

      19. The Premises shall not be used for lodging or manufacturing, cooking
or food preparation.

      20. Lessee shall comply with all safety, fire protection and evacuation
regulations established by Lessor or any applicable governmental agency.

      21. Lessor reserves the right to waive any one of the rules or
regulations, and/or as to any particular Lessee, and any such waiver shall not
constitute a waiver of any other rule or regulation or any subsequent
application thereof to such Lessee.

      22. Lessee assumes all risks from theft or vandalism and agrees to keep
its Premises locked as may be required.

      23. Lessor reserves the right to make such other reasonable rules and
regulations as it may from time to time deem necessary for the appropriate
operation and safety of the Office Building Project and its occupants. Lessee
agrees to abide by these and such rules and regulations.

                                  PARKING RULES

      1. Parking areas shall be used only for parking by vehicles no longer than
full size, passenger automobiles herein called "Permitted Size Vehicles."
Vehicles other than Permitted Size Vehicles are herein referred to as "Oversized
Vehicles."

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

      3. Parking stickers or identification devices shall be the property of
Lessor and be returned to Lessor by the holder thereof upon termination of the
holder's parking privileges. Lessee will pay such replacement charge as is
reasonably established by Lessor for the loss of such devices.

      4. Lessor reserves the right to refuse the sale of monthly identification
devices to any person or entity that willfully refuses to comply with the
applicable rules, regulations, laws and/or agreements.

      5. Lessor reserves the right to relocate all or a part of parking spaces
from floor to floor, within one floor, and/or to reasonably adjacent offsite
location(s), and to reasonably allocate them between compact and standard size
spaces, as long as the same complies with applicable laws, ordinances and
regulations.

      6. Users of the parking area will obey all posted signs and park only in
the areas designated for vehicle parking.

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

      8. Validation, if established, will be permissible only by such method or
methods as Lessor and/or its licensee may establish at rates generally
applicable to visitor parking.

      9. The maintenance, washing, waxing or cleaning of vehicles in the parking
structure or Common Areas is prohibited.

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

      11. Lessor reserves the right to modify these rules and/or adopt such
other reasonable and non-discriminatory rules and regulations as it may deem
necessary for the proper operation of the parking area.

      12. Such parking use as is herein provided is intended merely as a license
only and no bailment is intended or shall be created hereby.

                                                        Initials: ______________
                                                                  ______________

                               FULL SERVICE--NET

(C) 1984 American Industrial Real Estate Association

                                   EXHIBIT B
                                PAGE 1 OF 1 PAGE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]